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HomeMy WebLinkAbout209-058 • • Image Project Well History Fite Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. - Q 3- Well History File Identifier Qp_q Organizing (done) ❑ Two -sided 1!! JI!IIIIJI 11111 ❑ Rescan Needed 111 II!IIII 111111 RE.-AN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: ❑ Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: 4110111W Date: * � /s/ lb Project Proofing IIIUhIIIf 1111 1111 BY: CMaria Date: 91A1 1 + /s/ F Scanning Preparation _- / at 30 = + 4 = TOTAL PAGES 3 (Count does not include cover sheet) BY: Date: cf 11 /s/ Production Scanning III 111111111 IJII Stage 1 Page Count from Scanned File: 3 / (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: l NO BY: a, Date: f I , /s/ r 9. Stage 1 If NO in stage 1, page(s) discrepanc were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. III 111111111 1 111 ReScanned IIII 11111111 11111 BY: Maria Date: /s/ Comments about this file: Quality Checked 111 11111111 111111 10/6/2005 Well History File Cover Page.doc • Page 1 of 1 - 1/13/2010 &u McMains, Stephen E (DOA) From: Kanyer, Christopher V [Chris.Kanyer @chevron.com] Sent: Wednesday, January 13, 2010 1:10 PM To: McMains, Stephen E (DOA); Aubert, Winton G (DOA) Cc: Brandenburg, Tim C; Bonnett, Nigel (Nigel.Bonnett); Tyler, Steve L Subject: Cancellation of open sundries /permits After reviewing the following open permits to drill (form 10 -401) /sundries (form 10 -403) for Union Oil Company of California, it has been determined these open AOGCC permits /sundries should be cancelled: PTD Sundry API Well Name /Number 209 -011 N/A 50- 233 - 20025 -00 Panthera 21-6 -9 208 -207 N/A 50- 287 - 20026 -00 Stegodon 24-6 -8 209 -058 N/A 50- 733 - 20586 -00 Trading Bay Unit M -08 197 -067 308 -252 50- 733 - 20043 -02 A -08RD2 201 -117 308 -269 50- 733 - 20254 -01 Trading Bay Unit K -18 195 -083 308 -268 50- 733 - 20097 -04 Trading Bay Unit K -26RD 208 -184 309 -198 50- 283 - 20130 -00 Ivan River Unit (IRU) 11 -06 Please let me know if you have any questions. Thanks, Chris Kanyer •• Technical Assistant Wellbore Maintenance Team Office: (907) 263 -7831 Cell: (907) 250 -0374 Chevron North America Exploration and Production Midcontinent/Alaska SBU 3800 Centerpoint Dr, Suite 100 Anchorage, AK 99503 1/13/2010 I !(0 a / 6 R Eu it fih „S I F B ' f 4 s � ^^ A - SARAH PALIN, GOVERNOR ALASKA OIL AND GAS rr 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION / ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Timothy C. Brandenburg Drilling Manager Union Oil Company of California P.O. Box 196247 Anchorage, Alaska 99519 Re: McArthur River Field, Middle Kenai Gas Pool, Trading Bay Unit M -8 Well Union Oil Company of California Permit No: 209 -058 Surface Location: 1033' FNL, 600' FWL, SEC. 33, T9N, R13W, SM Bottomhole Location: 1574' FNL, 1401' FWL, SEC. 28, T9N, R13W, SM Dear Mr. Brandenburg: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness . required test, contact the Commission's petroleum field inspector at (90 659- 607 (pager). elf . No • an Co .a• . oner DATED this ccday of June, 2009 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. w 64- STATE OF ALASKA tv f''1r 1-oL i A. KA OIL AND GAS CONSERVATION COIOSSION PERMIT TO DRILL 20 AAC 25.005 la. Type of Work: lb. Current Well Class: Exploratory ❑ Development Oil ❑ lc. Specify if well is proposed for: Drill ii . Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas • ig Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ❑ Multiple Zone ❑ Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: . Blanket 0 Single Well ❑ 11. Well Name and Number: Union Oil Company of California Bond No. 086S103515406BCM •• Trading Bay Unit M -8 • 3. Address: 6. Proposed Depth: 12. Field /Pool(s): PO Box196247, Anchorage, AK 99519 . MD: 9,543' TVD: 8,760' ' McArthur River Field = 4a. Location of Well (Governmental Section): 7. Property Designation: /1( 1./r- t, C �� } (4( Surface: 1033'FNL, 600'FWL, SEC 33, T9N, R13W, SM . ADL0018730 [Steelhead Platform] . Grayling- eras • Z e.? Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1001'FNL, 606'FWL, SEC 33, T9N, R13W, SM N/A 8/15/2009 Total Depth: 9. Acres in Property: 14. Distance to Nearest 1574'FNL, 1401'FWL, SEC 28, T9N, R13W, SM 3,840 • Property: >6,000' . 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL: • 160' AMSL 15. Distance to Nearest Well Open Surface: x- 214217 • y- 2499466 , Zone- 4 KB Elevation above GL: feet to Same Pool: N/A 16. Deviated wells: Kickoff depth: 1,100 feet - 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 36 degrees Downhole: 3,872 ° Surface: 2,996 • 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Cond 28 -32 1/2 -1" WT X -56 Weld 401' 0 0 480' 480' Driven 17 -1/2" 13 -3/8" 68# L -80 BTC 1,362' 0 0 + 1,400' .1,400' 3206 ft in 2 stages 12 -1/4" 9 -5/8" 47# L -80 BTC -M 5,246' 0 0 . 5,325' 5,262' • 2,235 ft in 1 stage 8 -1/2" 7" 26# L -80 DWCSR 4,418' 5,125' 5,073' . 9,543' 8,760' • 797 ft in 1 stage 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Structural 401' 28 -32 Driven 480' 480' Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): N/A N/A 20. Attachments: Filing Fee ❑ BOP Sketch 0 Drilling Program El Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat El Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 4/30/2009 22. I hereby certify that the foregoing is true and correct. Contact Jim Rose 907 - 263 -7637 Printed Name pp Timothy C Brandenburg Title Drilling Manager Signature �{ ,...-----50. 4 Phone 907 - 276 -7600 Date s. 8. 20 1 Commission Use Only Permit to Drill API Number: f ., Permit Approval See cover letter for other Number: 1-L)' , j e� 50- 733 -- 2,c,5 C• ' Date: 4/31/4 9 requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: [ Other: Samples req'd: Yes ❑ No Er Mud log req'd: Yes ❑ No Er H measures: Yes [Er No ❑ Directional svy req'd: Yes [ No ❑ i r 2e 44C 25, 035 (h.) (i) , c.lf rt,..-tt Bo N E ^ k r he v e c.- �Q r 20 Mlle 2S. C3S L k 1 ( -) t�LVe.Y '1 e 4.. + l ; A K4.r; 4.x.e{ s ° P - ,c , - r 4* cwti". t t y ' g 0 p E to 10 00 p ' . ( e S"( r t - a 0 p E 'f c 0 0 loci:, / � ' P'OVED BY T HE COMMISSION DATE: 4/ ",s of oil COMMISSIONER Form 10 -401 (Revised 1/2009) This permit is valid fgt"'Q4 Jt r y�atq of approval (20 .. 25.005(g)) Submit in Duplicate 1 NI • �► Chevron Timothy C Brandenburg Union Oil Company of California kg. Drilling Manager P.O. Box 196427 Anchorage, AK 99519 -6247 Tel 907 263 7657 Fax 907 263 78888 4 Email brandenburgt @chevron.com RECEIVED April 30, 2009 711fl Commissioner t6 (as taurs f►1t11t shat Alaska Oil & Gas Conservation Commission Anchorage 333 W. 7 Avenue Anchorage, Alaska 99501 Re: Steelhead Platform, Trading Bay Unit M -8 Dear Commissioner, Enclosed for review and approval is the application for the Permit to Drill the Trading Bay Unit M -8 well from the Steelhead Platform. Drilling operations are expected to commence approximately August 15, 2009 depending on the progress of other ongoing projects. Currently, there are no other wellbores in Trading Bay Unit (TBU) producing or capable of production from the target strata of TBU M -8. If successful, the permitted TBU M-6 (APD 209 -004) will produce from equivalent strata as M -8. As planned, the M-6 and M -8 wellbores are separated by 2643' at their closest points through the intended productive intervals. A minimum separation of 375' (10 acre ✓ spacing) is required per Conservation Order 228. Therefore, a spacing exemption is not required to drill or produce TBU M -8. In accordance with 20 AAC 25.005 (c)(4)(A -C)... (A) MASP calculations are attached for review. (B) The Grayling Gas Sands are potentially gas bearing throughout the section. Potential target reservoirs and their predicted pore pressures are indicated in the attached M. Well Design Summary. (C) Due to ongoing production operations in this field, sub - normally pressured sands occur e in multiple places. Lost circulation and differential sticking are potential problems. Conventional solutions such as LCM and good drilling practice are intended to ameliorate the problems. An exception to 20 AAC 25.035 (c)(1)(B) is requested. The diverter system at Steelhead includes two 16" diameter diverter lines. The surface hole • Y\. section of M -8 is planned to be drilled with a 17'/z" bit. Union Oil Company of California / A Chevron Company Page 1 of 2 • • An exception to 20 AAC 25.035 (e)(3) is requested. / The BOP stack for Steelhead includes 20 %" 3M ram preventers and a 21 %" 2M annular preventer. The MASP for the subject well, when calculated in the most pessimistic manner, exceeds the rated working pressure of the annular preventer. The annular preventer will not be used in a secondary well control event in excess of its rated working pressure. Union Oil Company also requests that the test pressure for the annular be established a psi. The annular preventer has been previously tested to 2000 psi. Repeated testing to 0 psi will degrade the annular element. In accordance with 20 AAC 25.050 (b)(2)(B)... Union Oil Company of California is the only operator of wells within 200' of the planned ° trajectory of M -8. Pursuant to 20 AAC 25.005 (c)(14)... Qualified drilling waste will be discharged in accordance with NPDES permit AKG -31 -5000 which became effective 7/2/2007 and expires 7/2/2012. At this time, Union Oil Company does not intend to apply for annular disposal approval. The remaining requirements of 20 AAC 25.005 are attached for review or currently on file with the Commission. If you have any questions, please don't hesitate to contact myself or Jim Rose at 907 - 263 -7637. Sincerely, 72, ,,, ,,6____ „ 5: „. -- ' Timothy C. Brandenburg Drilling Manager Attachments: Form 10-401 in Duplicate M -8 Cementing Calculations M -8 Well Design Summary M -8 Casing Design M -8 Summary Drilling Procedure M -8 MASP Calculations M -8 Summary Mud Program M -8 FIT / LOT Procedure M -8 Planned Well Sketch M -8 Spider Plots M -8 Planned Well Trajectory M -8 Combo BOP /Diverter Schematic M -8 Drilling Hazards Notice M -8 Choke Manifold Schematic M -8 Plat I Cc: File Union Oil Company of California / A Chevron Company Page 2 of 2 Chevron kW. Steelhead Platform Well M -8 1%.1. Well Design Summary M -8 Well Design Summary Steelhead M -8 is a development well drilled in a NNE direction from slot B2- 12. The well penetrates multiple primary and secondary Grayling Gas Sand targets from the SZ11 at 1429' TVD through the G06 at 8626' TVD. M -18 is designed with a build and hold trajectory reaching 36 degrees . inclination and a total depth of 9543' MD, 8760' TVD. Basic Well Information Platform: Steelhead Well Name: Trading Bay Unit M -8 Estimated Spud Date: 8/15/09 Field: McArthur River Productive Horizon: Grayling Gas Sands . PTD: TBD Total Depth: 9543' MD, 8760' TVD - Slot: Slot B2 -12, NE Leg • Surface Location: 1033' FNL, 600' FWL, Sec 33, T9N, R13W, SM X= 214217, Y= 2499466, NAD27, ASP, Zone 4 Planned BHL: 1574'FSL, 1401' FWL, Sec 28, T9N, R13W, SM X=215096, Y=2502076 Original KB Elevation: 160' AMSL KB to THF: TBD Casing and Tubing Program Top Btm Hole O D Weight Grade Conn Length MD/TVD MD/TVD Size (in) (in) (Ibs / ft) (ft) (ft) (ft) Driven 28 -32 X -56 Weld 401 BF 480 17 '/2 13 3/8 68 L -80 BTC 1362 BF 1400/1400 12.q rs 12 1 /4 9 5/8 47 L -80 BTC -M 5246 BF 5325/5262 s. ° I 8'/2 7 26 L -80 DWCSR 4418 5125/5073 9543/8760 x.2 TBG 4 12.6 L -80 TCII TBD 78 TBD 4/30/2009 Page 1 of 3 Chevron Steelhead Platform Well ll M-8 1%0 Well Design Summary Well Control Summary Hole Section Equipment Test Pressure (psi) ,�; 17'/2" 21 ' /4- DDiverter c/w 2 ea 16" 600 psi Diverter Function Valves 21 1/4 *M Annular, 20 3/ 3M Double Gate, 12 '/4" 20 3/4 3M Mud Cross, 20 3 /4 3M Single Gate 250/1000/3000 1 /8 5M Choke Manifold* 21 1/4 '1 Annular, 20 3 /4 3M Double Gate, 8 '/2" 20 3/4 3M Mud Cross, 20 3 /4 3M Single Gate 250/1000/3000 3 1/8 5M Choke Manifold* *Schematics of the well control equipment are attached for reference Anti - Collision Evaluation Summary There are multiple close approach wells. 3 of the 4 close approach wells are not considered major risk because the closest approach occurs behind the conductor pipe. The M -1 well path does present a moderate collision risk. Collision risk will be mitigated procedurally by monitoring annular pressures of adjacent wellbores and placing an observer in the wellhead room to listen for indications of a collision. Close Approach M -08 Path Ellipse Separation Diverging From Well (MD ft) (ft) (ft) M -1 732 -2.99 8000 M -4 485 -2.71 300 M -7 344 -1.52 257 M -5 444 -0.53 3100 4/30/2009 Page 2 of 3 Chevron 1 Steelhead Plafform Well ll M-8 /%0 Well Design Summary Formation Integrity Testing Test Point, 20' Pr Depth d Test Type Projected Test Below... (TVD) (EMW ppg) 13 3/8" Csg Shoe 1375 FIT 12.9 min 9 5/8" Shoe 2658 LOT 12.8 min Mud Program Summary Section Depth Mud Type Density Viscosity PV YP API FL (MD ft) (ppg) (sec) 17'/2" Surf. 0 -1436 Pre -Hyd Gel 9.0 -9.3 60 -85 10 -28 25 -35 <12 12'/4" Interm. 1436 -6250 KCL /GEM /Pmr 9.1 -9.3 ` 40 -53 6 -15 13 -20 <_6 8'/2" Prod. 6250 -9970 KCL /GEM /Pmr 9.2 -9.3 ' 40 -53 6 -15 13 -20 55 Cementing Summary See Attachments Formation Markers Measured EMW Requirement Target Top TVDSS Depths Depth (RKB) V8 (ppg RKB) F1 1 7790 8550 4.0 -8.5 max F13B 7880 8660 4.0 -8.5 max F14A 7905 8675 4.0 -8.5 max F15B 8028 8840 4.0 -8.5 max F15C 8073 8900 4.0 -8.5 max F16 8121 8951 4.0 -8.5 max GO1 8232 9088 4.0 -8.5 max G05 8416 9316 4.0 -8.5 max Zc71ZD atI V - 7, 701 171 1Q7 4/30/2009 Page 3 of 3 Chevron Steelhead Platform Well M-8 Basic Drilling Procedure M -8 Basic Drilling Procedure 1. RU Steelhead rig over slot B2 -12. 2. Install A section wellhead and test. 3. Install 21 1 /4 2M /20 % 3M combo diverter /BOP stack and dual 16" diverter lines. Function test diverter per AOGCC requirements. 4. MU 17 bit and clean out conductor to 480': 5. MU 17'/2" directional BHA and drill to 1400' taking gyro surveys as necessary. 6. MU jet wash tool and wash out conductor to 480'. 7. Run and cement 13 3/8" casing to surface in 2 stages utilizing an ECP stage collar. 8. Install 13 5/8 multi bowl wellhead system. NU BOP stack. Install blind flanges on diverter outlets. Install 9 5/8 rams. Test stack to 250/1000/3000. 9. MU 12 '/4" drill out BHA and drill out stage tool. Test casing to 1500 psi. 10. Drill out shoe track and perform FIT to 12.9 ppg EMW. 11. Trip. MU directional BHA. 12. Directionally drill to 5325'. 13. Run and cement 9 5/8 casing to ML in 1 stage. 7- 14. Redress BOP's w/ 7" rams and test 250/1000/3000 psi. Test 9 5/8" casing to 3000 psi 15. MU 8 1 /2" directional BHA and drill out. Perform LOT to 12.8 ppg minimum. 16. Directionally drill to section TD at 9543' MD. 17. Pull wiper trip. 18. Run 7" Liner, hanger, and liner top packer. Set liner hanger and cement. Set_ packer. 19. Redress BOP's and test 250/1000/3000. Test 7" liner to 3000 psi. 20. PU clean out string and make bit and scraper runs to PBTD. Displace to completion fluid. 21. RU TCP guns and perforate GGS stage 1. . 22. Observe well, and TOOH. 23. Run 4 1 /2 tubing. Space out, set packer, and land tubing. Test hanger void. 24. Install BPV and ND BOP. 25. NU tree and test. 26. RDMO Steelhead rig. 4/30/2009 Page 1 of 1 • Halliburton BAROID Chevron Mud Program bAoIO 1 Q f,l JI Chevron Steelhead M -8 Cook Inlet, Alaska Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Megan Wesselman Reviewed by Dave Higbie Customer Approval Jim Rose Version No: Date: 1.0 April 20, 2009 M -8 v1.0 1 4/20/09 • • Halliburton BAROID Chevron Mud Program Steelhead Producer Well Specifics: Casing Program MD Footage 17 -1/2" hole (13 -3/8" csg) 1400 920 12 -1/4" hole (9 -5/8" csg) 5325 3924 8 -1/2" Hole (7" liner) 9396 4071 Surface Hole Recommendations — (17 -1/2" hole, 13 -3/8" casing to 1400') Properties: Dens'2, Viscosi Plastic Viscosi Yield Point API FL • H 480' -1400' 9.0 -:.3 60 - 85 10 - 28 25 - 35 <8 8.5 -9.0 System Formulation: pre hydrated gel /produced water spud mud Product Concentration Water 0.905 bbl Soda Ash 0.5 ppb Aquagel 12 -15 ppb Caustic 0.1 ppb (9 pH) Barazan D as needed Baroid as required for 9.2 ppg PAC /Dextrid if required for <10 FL Aldacide G 0.1 ppb Concerns and Contingencies Intermediate Interval — (1,400'MD — 17-1/2" hole, 13 -3/8" casing) Mud Type: Pre- hydrated gel /produced water spud mud 1. Mud weight: Maintain the 9.0 — (2 density or as directed. 2. Rheology: Maintain a YP between 25 -35 or as needed to achieve adequate hole cleaning. 3. Filtrate control: Maintain the filtrate <8 using Dextrid and /or Pac L. Additions of Condet may be required to control screen blinding /BHA balling. Losses in this interval can be controlled with additions of 3 ppb BAROFIBRE and 3 ppb of Baracarb 50 or by dedicated LCM pills. Operations Summarv: Mix a -50 bbl LCM pill prior to drilling out. The pill formulation will be: 45 bbls base mud, 9 ppb Barofibre, 9 ppb Wallnut F, and 12 ppb of Baracarb 50. Pre - hydrated Aquagel should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required a high viscosity sweep or Barolift is recommended. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates, angle and cuttings size. Sweep Formulation: 25 bbl of mud with — ppb of Barazan D added or 0.25 ppb of Barolift. Dextrid and /or PAC L should be used for filtrate control. While drilling, monitor the torque and drag to determine if liquid lubricant is required. Additions of Condet are recommended to reduce the incidence of bit balling and shaker blinding when penetrating high -clay content sections. Maintain the pH in the 8.5 — 9.0 range with caustic soda. Daily additions of Aldacide G / X -Cide 207 should be made to control bacterial action. M -8 v1.0 2 4/20/09 • Halliburton BAROID Chevron Mud Program At TD, a Wallnut "flag" (30 bbl pill with 15 ppb of Wallnut Fine) should be pumped to gauge hole washout and to calculate the required cement volume. Spot the above LCM pill in the bottom of the hole. If it has been used, mix a duplicate pill to spot on bottom. The cement will then be pumped and drilling mud will be used to bump the plug. Pretreat this chase mud with 1 ppb Bicarb and 0.5 ppb citric acid. Losses have historically occurred in this interval. Ensure that the mud weight is maintained in the 9.1 -9.2 ppg range through this area. Stress slow pipe movement to the drillers to reduce surge /swab on the zone. Stage pumps on slowly after connections and begin rotation prior to pumping (this will break the gels and reduce the pressure required to break the gels). Reduce system YP with Barathin as required for running casing as allowed (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP < 20 (check with the cementers to see what yp value they have targeted). Consider spotting a Steelseal LCM pill prior to running the 13 -3/8" casing if losses have been seen in this interval. The plug will again be bumped with mud on the well. This well is a large borehole. Modeling shows that it will become much more difficult to clean if flowrates drop below 1000 gpm. Maintain a minimum 25 YP at all times. Be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates and cuttings size. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM—) 600 800 1000 80 rpm 69 92 119 100 rpm 72 96 123 Baroid recommends a flowrate in the 800 gpm range to maximize hole cleaning efficiencies at these higher penetration rates. However if losses occur, the flow rate can be reduced in conjunction with a slower penetration rate which would reduce the ECD /losses. Hazards / Concerns — Surface Interval: • Optimize solids control equipment to maintain density and sand content. • Maintain YP between 25 -35 to optimize hole cleaning and to control ECD. • Pump high viscosity or Barolift sweeps to enhance hole - cleaning efforts. Monitor sweep effectiveness. • Successfully land and cement casing. M -8 v1.0 3 4/20/09 • • Halliburton BAROID Chevron Mud Program Intermediate Hole Section Recommendations Mud Type: 2% KCI, Clayseal, GEM Properties: Densi, Viscosi Plastic Viscosi Yield Point API FL • H 1400' -5325' 9.1 • .3 40 -53 6 15 13 - 20 <6 8.5 -9.5 • Additional mud weight may be required for effective coal or shale stabilization. System Formulation: 2% KCI, Clayseal, GEM Product Concentration Water 0.905 bbl KCI 7 ppb (9K chlorides) Caustic 0.2 ppb (9 pH) Barazan D 1.0 ppb (as required 18 YP) Dextrid 1 -2 ppb PAC L 1 ppb Clayseal 4 ppb (initial 1 ppb) Aldacide G 0.1 ppb GEM GP 1.5% by volume Baroid as needed for 9.1 ppq Special Mixing Instructions: • Mix in order as listed • Add polymers slowly to minimize fisheyes. Intermediate Interval (12 -1/4" hole, 9 -5/8" casing to 5325' MD) Mud Type: 9.1 ppg KCl/ ClayseaV GEM System. 1. Mud weight: Maintain the density at,ppg or as needed; use solids control and whole mud dilution. Increase density as req • ed for hole stability/coal sloughing. Maximize solids control usage. 2. Rheology: Maintain a YP between 13 and 20. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated wellbore. Maximize pipe rotation (ideally > 100 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. Operations Summary: Mix a -50 bbl LCM pill prior to drilling out. The pill formulation will be the 70 ppb pill from the LCM tree. Mix the recommended LCM material in thinned back base mud. Drill out the cement/casing with the existing mud system. Soda ash and citric acid should be used to pretreat for any negative effects of the cement. After obtaining a leak off, begin drilling ahead displacing to the KCI based fluid. Baracarb 5, 25 and /or 50 should be maintained at 7 -8 ppb. Barofibre \Steelseal can be added to this mix. The Clayseal concentration should be 1 ppb in the initial mix. As the mud shears, slowly raise the Clayseal concentration to its full 4 ppb concentration. GEM GP should be maintained at 1.5 -3% v /v. Do not exceed 3% GEM GP. BARAZAN -D should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required a high viscosity or Barolift sweep is recommended. Sweep Formulation: 50 bbl of mud with -1 ppb of Barazan D added or .25 ppb of Barolift. M - v1.0 4 4/20/09 • • • Halliburton BAROID Chevron Mud Program Dextrid and PAC L should be used for filtrate control (6cc range). 4 ppb Barotrol should be added to help control coals and shales. While drilling, monitor the torque and drag to determine if liquid lubricant is required. If so, approval from town will be required prior to additions of lubricants. Additions of Condet are recommended to reduce the incidence of bit balling and shaker blinding when penetrating high -clay content sections. Maintain the pH in the 8.5 — 9.5 range with caustic soda. Daily additions of Aldacide G / X -Cide 207 should be made to control bacterial action. Maintain Cl- in the 8 -9K range with KCI. Reduce system YP as required for running casing as allowed (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP < 15 (check with the cementers to see what yp value they have targeted). Consider spotting a Steelseal LCM pill prior to running the casing if losses have been seen in this interval. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real -time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue in this interval. Maximum Acceptable ROP in f?h at Specified GPM and RPM GPM—) 600 700 800 60 rpm 135 165 175 80 rpm 135 165 195 100 rpm 135 175 195 Rotary speed is the most critical factor in cleaning this highly deviated wellbore. Maximize rpms at all times. ROPs above these levels or with no rotation (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: • extended periods of circulation (with maximum pipe rpm, targeting > 100 rpm) • hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) • connection practices - employing extended gpm, rpm and back reaming during the connection M -8 v1.0 5 4/20/09 • 1 Halliburton BAROID Chevron Mud Program 8 -1/2" Hole Recommendations (7" liner) to 9396' Mud Type: 2% KCI, Clayseal, GEM Properties: Dens'., Viscosi Plastic Viscosi Yield Point API FL • H 5325' — 9396' 9.2 -s .3 40 -53 6 - 15 13 - 20 <5 8.5 -9.5 System Formulation: 2% KCI, Clayseal, GEM Product Concentration Water 0.905 bbl KCI 7 ppb (8 -9 K chlorides) Caustic 0.2 ppb (9 pH) Barazan D 1.0 ppb (as required 18 YP) Dextrid 1 -2 ppb Clayseal 4 ppb Aldacide G 0.1 ppb GEM GP 1.5% by volume Baracarb 50 10 ppb Baroid as needed Mud Type: 9.2 ppg KCI /Clayseal /GEM System. 1. Mud weight: Maintain the density at 9 2 ppg or as directed; use solids control and whole mud dilution. Increase density as required for hole stability/coal sloughing. Maximize solids control usage. 2. Rheology: Maintain a YP between 13 and 20. Pump high viscosity sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated wellbore. Maximize pipe rotation (ideally > 60 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. Operations Summary: Mix a -50 bbl LCM pill prior to drilling out. The pill formulation will be the 70 ppb pill from the LCM tree. Mix the recommended LCM material in thinned back base mud. Drill out the cement/casing with the existing mud system. Soda ash and citric acid should be used to pretreat for any negative effects of the cement. BARAZAN -D should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. The mud may need centrifuged prior to adding 10 ppb of Baracarb 50 and 6 ppb Steelseal (bridging agent for the "weak" zones). Should sweeps be required a high viscosity sweep or Barolift is recommended. Sweep Formulation: 20 bbl of mud with -1 ppb of Barazan D added or .25 ppb of Barolift. Maintain Clayseal concentrations at 4 ppb and GEM GP at 1.5 -3 %. Dextrid and /or PAC L should be used for filtrate control (5cc range) to TD. While drilling, monitor the torque and drag to determine if liquid lubricant is required. If so, approval from town will be required prior to additions of lubricants. Additions of Condet are recommended to reduce the incidence of bit balling and shaker blinding when penetrating high -clay content sections. Maintain the pH in the 8.5 - 9.5 range with caustic soda. Daily additions of Aldacide G / X -Cide 207 should be made to control bacterial action. The GEM GP can be raised above the 1.5% level to help reduce torque. Do not exceed 3% v/v of GEM GP. Spot the above LCM pill in the bottom of the hole. If it has been used, mix a duplicate pill to spot on bottom. Reduce system YP with Barathin Plus as required for running casing as allowed (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the M - v1.0 6 4/20/09 • Halliburton BAROID Chevron Mud Program system rheology once the casing is landed to a YP < 15 (check with the cementers to see what yp value they have targeted). The plug will be bumped with 3% KCI brine. Suggested Drilling Parameters: Maximum Acceptable ROP in fph at Specified GPM and RPM GPM—) 350 450 550 60 rpm 95 155 185 80 rpm 125 192 215 100 rpm 140 200 245 Production Hole - Hazards / Concerns: • Optimize solids control equipment to minimize colloidal solids build up and dilution requirements. • Maintain flow profile based on PV, YP and tau flow parameters. • Pump sweeps as required to enhance hole - cleaning efforts. Follow the hole cleaning guidelines to assist in drilling parameter selection. Use connections for high RPM and pump rate support when these parameters are limited during drilling operations. • Follow the coal drilling guidelines. Coal Drilling The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The hole stability risks when drilling coal seams are often high, and the fluid design and drilling operations have been optimized to combine reduced risk with reduced costs. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt -type additives to further stabilize coal seams. • Increase fluid density as required to control the running coal. • Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss (based on ECD values using the DFG software). System density increases can also be employed in increments of 0.5 ppg. Solids Control Equipment Maximize the use of all solids control equipment to ensure that the solids content of the system is kept to a minimum during this interval. 1. Run the shale shakers with as fine a screen size as possible. • Size shakers screens with coarse mesh initially • Adjust screen size as solids loading, mud rheology and flowrates allow • Inspect the shakers frequently, taking time to repair / replace damaged screens 2. Maximize the use of the centrifuge, keeping the fluid as clean as possible. Running Casing / Cementing Preparation Monitor hole fill /returns closely while running the liner to insure losses haven't occurred. Refer to Baroid's DFG+ program if calculated surge /swab values are needed. Condition the mud prior to the cement job. Completion The well will be completed with a 6% KCI brine. If rig ops allow, bump the plug with the brine, then finish displacing the casing after coming off the liner hanger. M -8 v1.0 7 4/20/09 Chevron • Steelhead Platform % . Well M -8 V11 %. Proposed 4/21/09 CASING AND TUBING DETAIL RKB to TBG Head = 78' SIZE WT GRADE CONN MIN ID TOP BTM (MDrkb) • 28" Structural 27" Surface 480' 13 -3/8" 68 L -80 BTC 12.415 Surface 1400' 9 -5/8" 47 L -80 BTC -M 8.681 Surface 5325' 28" Conductor 7" 26 L -80 DWCSR 6.276 5125' 9543 ' • _e ECP Stage Collar Tubing • `------ scssv @ 450' 4 -1/2" 12.60 L -80 TCII 3.958 Surface TBD' Chemical Injection Mandrel @ 2000' Logging Detail L , Hole LWD /MWD Wire Line Mud Logging Notes 17 %" Hole, 13 3/8" Section Set above the SZI1 171/2 gMWD, GR/RES Mudlog On Site Geologist 12'/. Triple Combo Mudlog On Site Geologist • 8'h Triple Combo, Mudlog On Site Geologist TesTrak (15pts) Perforation Detail MD Zone Density (SPF) Notes TBD NM Packer just above the D2 t il 1 12'1" Hole, 9 5/8" Casing set above the D9 Coal Miscellaneous Equipment Informtion Item Depth OD ID Notes GasLift Mandrels Chemical Injection Mandrel Profile Nipple ■ EOT 300' above the G05 Cementing Information Description Volume Density Yield Notes (bbls) (ppg) (ft3 /sx) TD @ 9543 7" Liner in 8 1/2" Hole MAX HOLE ANGLE = 36° @ 9190' MD Well Detail DRAWN BY: JAR 4/09 • • Chevron PRI Chevron BAKER 1%.° L ocation: Cook Inlet, Alaska (Offshore) Slot: slot #B2 -12 111114,1111111 Field: McArthur River Field Well: Plan M -08 INTE Facility: STEELHEAD Platform Wellbore: Plan M -08 Q Plot reference wellpath is M- 08_Version #11 True vertical depths are referenced to Actual Datum (RKB) Grid System: NAD27 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Actual Datum (RKB) North Reference: True north Actual Datum (RKB) to mean sea level: 160.25 feet Scale: True distance mean sea level to Mud line (Facility: STEELHEAD Platform): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: ulricard on 4/21/2009 Well Profile Data - 750 Design Comment MD (ft) Inc (°) Az (°) TVD (ft) Local N (ft) Local E (ft) DLS (°/100ft) VS (ft) 1 1.11 Tie On 0.00 0.000 10.000 0.00 0.00 0.00 0.00 0.00 End of Tangent 485.00 0.000 10.000 485.00 0.00 0.00 0.00 0.00 End of Tangent 1000.00 0.000 10.000 1000.00 0.00 0.00 0.00 0.00 End of Build 1600.00 6.000 10.000 1598.90 30.91 5.45 1.00 31.14 0 - , l e On End of Drop 2200.00 0.000 358.983 2197.81 61.82 10.90 1.00 62.28 End of Tangent 3800.00 0.000 358.983 3797.81 61.82 10.90 0.00 62.28 End of Tangel J 28in Cmdudor End of Build 4435.03 19.051 358.983 4421 20 166.41 9.04 3.00 161.63 End of Tangent 5249.48 19.051 358.983 5191.04 432 21 4.32 0.00 414.13 750. End of 3D Arc 6114.94 34.779 15.675 5961.37 814.00 69.00 2.00 797 97 End of Tangent End of Tangent 7289.38 34.779 15.675 6926.00 1459.00 250.00 0.00 1467.64 End of 3D Arc 7450.40 35.580 21.091 7057.64 1546.95 279.27 2.00 1560.31 00° /100ft End of Tangent 8671.79 35.580 21.091 8051.00 2210.00 535.00 0.00 2269.34 13 3/8' cs9 �' End of 3D Arc 9190.57 35.788 38.923 8473.54 2469.53 685.01 2.00 2561.64 1500 End of Buld End of Tangent 9396.08 35.786 38.923 8640.25 2563.02 760.52 0.00 2673.29 End of Tangent 9543.70 35.786 38.923 8760.00 2630.18 814.75 0.00 2753.48 1.007100ft 2250 - End of Drop 3000 - 9750 - End of Tangent t a 3.007100ft N 0 cg 4500 - End of Btild r d a) V. End of Tangent F 5250 - 9 5/8" csg as 2.007100ft 6000 _ End of 3D Arc 6750 - End of Tangent 2 00° /100ft End of 3D Arc 7500 - End of Tangent 8250 - 2.001100ft End of 3D Arc M -08 C39 Target 21-Jan-09 End of Tangent 7" Liner A 9000 - oa 9750 - 1 1 1 1 1 1 1 -750 0 750 1500 2250 3000 3750 Vertical Section (ft) ."" 1 Inch i 1500fl Azimuth 17 21 °with reference0.00 N 0.00 E Chevron • /GAS %110 Chevron BAKER N IONEs aft. Location: Cook Inlet, Alaska (Offshore) Slot: slot #B2 -12 INTEQ Field: McArthur River Field Well: Plan M -08 F acility: STEELHEAD Platform Wellbore: Plan M -08 Scab, inch .30011 Easting (ft) -150 0 150 300 450 600 750 900 I t t t t 1 t � � - 2700 P61 reference wellpath is M-0B-Versionill nd • Tangent ` True vertical depths are referenced to Actual Datum (RKB) Grid System: NAD27 / TM Alaska State Plane, Zone 4(5004), US feet Measured depths are referenced to Actual Datum (RKB) North Reference: True north M -08 C33 Target 21-Jan-09 - 2550 Actual Datum (RKB) to mean sea level: 160.25 feet Doe: True distance a M sea level to Mud line (Facility: STEELHEAD Pfelhrm): 0 het Depths are in feet / / /// • m Coordinates are in feet referenced to Slot Created by ucard on 4/21/2009 End of 3D - 2400 Well Profile Data Design Comment MD (ft) Inc (°) Az (°) TVD (ft) Local N (ft) Local E (ft) DLS (91008) VS (ft) Tie On 0.00 0.000 10.000 0.00 0.00 0.00 0.00 0.00 2250 End of Tangent 485.00 0.000 10.000 485.00 0.00 0.00 0.00 0.00 End of Tangent 1000.00 0000 10.000 1000.00 0.00 0.00 000 0.00 End of Tangent End of Build 1600.00 6.000 10.000 159820 30.91 5.45 1.00 31.14 End of Drop 2200.00 0000 358.983 2197.81 61.82 10.90 1.00 62.28 End of Tangent 3800.00 0.000 358.983 3797.81 61.82 1020 0.00 62.28 - 2100 End of Build 4435.03 19.051 358.983 4421.20 166.41 9.04 3.00 161.63 End of Tangent 5249.48 19.051 358.983 5191.04 432.21 4.32 0.00 414.13 End of 3D Arc 6114.94 34.779 15.675 5961.37 814.00 69.00 2.00 797.97 End of Tangent 7289.38 34.779 15.675 6926.00 1459.00 250.00 0.00 1467.64 End of 3D Arc 7450.40 35.580 21.091 7057.64 1546.95 279.27 2.00 1560.31 - 1960 End of Tangent 8671.79 35.580 21.091 8051.00 2210.00 535.00 0.00 2269.34 End of 3D Arc 9190.57 35.786 38.923 8473.54 246923 685.01 2.00 2561.64 End of Tangent 9396.08 32786 38.923 8640.25 2563.02 760.52 0.00 2673.29 End of Tangent 9543.70 35.786 38223 8760.00 2630.18 814.75 0.00 2753.48 - 1800 - 1550 End of 3D Arc - 1500 End of Tangent Z O . - 1950 s 7 m - 1200 - 1050 - 900 End of 3D Arc - 750 - 800 r 9.625n Casing - 450 End of Tangent - 300 End of Buld - _ 7 - _l of Tangent 13.375in Casings End of Mild • 28in C ndudor End o f Tanga t - 0 slot #B2 -12 • • Steelhead M -08 Summary of Drilling Hazards POST THIS NOTICE IN THE DOGHOUSE 17 -1/2" Hole Section ✓ • Shallow gas sands will be encountered that have the potential to flow and cause a loss of well control. All operations shall proceed with the necessary precautions to prevent a kick. Special attention is required in the following areas: 1. Monitor trip tank on each trip into and out of the hole. 2. Carefully monitor PVT for gain / loss. 3. Have LCM material onboard and ready for use in the event significant losses occur. 4. Minimize surge and swab pressures while tripping. 5. Review cement spacers and washes to ensure the well is not under balanced at any point during cementing operations. 6. Perform diverter drills until the crews are familiar with the procedure. • M -9, M -2, M -3, M -4 are all critical close approach wells. Record annulus pressures on these wells prior to spud and monitor during the drilling of the surface and 1st intermediate hole sections. 12 -1/4" Hole Sections V • Shallow gas sands will be encountered that have the potential to flow and cause a loss of well control. All operations shall proceed with the necessary precautions to prevent a kick. Special attention is required in the following areas: 1. Monitor trip tank on each trip into and out of the hole. 2. Carefully monitor PVT for gain / loss. 3. Have LCM material onboard and ready for use in the event significant losses occur. 4. Minimize surge and swab pressures while tripping. 5. Review cement spacers and washes to ensure the well is not under balanced at any point during cementing operations. 8-1/2" Hole Section • Significantly under pressured reservoir sands will be encountered A heightened awareness of kick detection, pre -job planning and trip tank calibration will be essential while drilling /trip ping the intermediate interval. • Loss circulation is considered to be a major risk due to the depleted reservoir sands which will be encountered. Loss circulation materials will be readily available for adding to the mud system should significant losses be encountered. Consult the Lost Circulation Decision Tree regarding LCM treatments and procedures • Differential sticking is a considerable risk while drilling these depleted sands. Keep the drill string moving whenever possible. • Numerous coals will be drilled through. Unocal coal drilling strategy; limiting the amount of coal drilled ( <10') prior to back reaming should be followed. HYDROGEN SULFIDE - H2S +f • Steelhead is designated as an H2S drill site. Standard Operating Procedures for H2S precautions should be followed at all times. Version 1.0 Rigsite Hazards and Contingencies • • McArthur River Field Steelhead Platform M -08 Proposed TD X: 215096 Y: 2502076 ADL017594 ADL018730 vg , Steelhead Leg B -2 z 0 Slot 12 i X: 214217 ' XZ214224 Y: 2499466 i Y: 2499499 g N _ A ! , Chevron 0 250 500 - ID X Y Location Feet Surface 214217 2499466 1033' FNL, 600' FWL, Sec 33, T9N, R13W, S SZ12ST 214224 2499499 1001' FNL, 606' FWL, Sec 33, T9N, R13W, S State Plane Alaska Zone 4 NAD 27 Union Oil Company TD 215096 2502076 1574' FSL, 1401' FWL, Sec 28, T9N, R13W, S April 27, 2009 of California Chevron 1%101 Steelhead Platform Well M -8 Drilling Program 2009 M -8 Cement Calculations • Surface Casing 13 3/8 ", 68 ppf, Surface Casing in 17 1 /2" Hole, Stage 1 Cement from section TD at 1400' to the ECP stage tool at 470' OH Volume w/ 100% excess = (1400- 470) *0.1237 =230 bbls - Shoe Track Volume = 80 *0.149 = 12.0 bbls Stage 1 Total Volume = 230 +12.0 = 242 bbls of slurry - 13 3/8 ", 68 ppf, Surface Casing in 34 OD x Various ID Structural Pile Conductor, Stage 2 • Cement from 470' to surface (ECP is 10' long) Annular Volume = 470 *0.7005 = 329 bbls Stage 2 Total Volume = 329 bbls of slurry Notes: 1 Used 30" ID as average for volumetric calculations. Chevron IMO Steelhead Platform Well M -8 Drilling Program 2009 Intermediate Casing 9 5/8 ", 47 ppf, Intermediate Casing in12 /4" Hole Cement from TD @ 5325' to ML at 345' OH Volume w /50% excess = (5325- 1400) *0.0558 *1.50 = 329 bbls r Cased Hole Volume = (1400- 345) *.0597 = 63 bbls Shoe Track Volume = 80 *0.0732 = 5.9 bbls Total Volume = 398 bbls slurry / Production Liner 7 ", 26 ppf, Production Liner in 8'/2" Hole • Cement from section TD at 9543' to 5125' (200' lap inside the 9 5/8" casing) OH Volume w /40% excess = (9543 - 5325) *0.0226 *1.4 = 133.5 bbls Cased Hole Annular Volume = 200 *0.0256 = 5.1 bbls Shoe Track Volume = 80 *0.0383 = 3.1 bbls Total Cement Volume = 142 bbls slurry " 1 Chevron IWO Steelhead Platform Well: TBU M -8 %. Drilling Program 2009 TBU M -8 Casing Design Tensile Tensile Design Design Design 41 Internal Collapse Strength Strength Safety Safety Safety Size Wt Yield Resistance Body Conn MD TVD Factor Factor Factor (in) (ppf) Grade Conn (psi) (psi) (M Ibs) (M Ibs) (ft RT) (ft RT) T2 B3 C4 28 Structural 13 3/8 68 L -80 BTC 5020 2270 1556 1478 1400 1400 15.53 2.79 4.74 ) 9 5/8 47 L -80 BTC -M 6870 4760 1086 1031 5325 5262 4.12 2.29 2.65 7 26 L -80 DWCSR 7240 5410 604 573 9543 8760 5.26 2.42 1.81 Notes: 1 Existing 28 " -32" OD structural pile conductor set in 1986. 2 Tension safety factor is calculated without buoyancy effects. 3 Burst safety factor is based on MASP. • 4 Collapse safety factor assumes evacuated casing. Chevron Steelhead Platform Well M -8 Drilling Program 2009 M -8 Maximum Anticipated Surface Pressure Calculations 17 Surface Hole, 13 3/8 Casing • The 17 surface hole will be drilled to approximately 1400'/1400' MD /TVD under an existing structural pile • conductor and will use a diverter system for well control. The diverter system is not designed to shut the well in and contain pressure. Therefore, MASP is 0 psig for this hole section. 12'/4" Intermediate Hole Section, 9 5/8" Casing The 12'/4" intermediate hole section will be drilled from 1400' TVD to 5262' TVD. MASP will be bottom hole pore pressure less a gas gradient to surface BHP MASP The maximum predicted pore pressure at section TD = $'. ppg. • • Pore pressure = 5262 x 8.5 x 0.052 =2326 psig Correcting for an evacuated wellbore = 2326 - (5262 *0.1) = 1800 psig Therefore, BHP MASP = 1800 psig MASP = 1800 psig / Chevron Steelhead Platform Well M -8 Drilling Program 2009 8'/2" Hole Section, 7" Liner The 8 '/2" production hole section will be drilled from 5262' TVD to 8760' TVD. MASP will be bottom hole pore pressure Tess a gas gradient to surface BHP MASP The maximum predicted pore pressure at TD 4ppg. Pore pressure = 8760 x 8.5 x 0.052 = 3872 psig • Correcting for an evacuated wellbore = 3872 - (8760 *0.1) = 2996 prig MASP = 2996 psig • Planned Wellpath Geo • raphic Report Report Generated 4/21/2009 at 2:05:12 PM Projection System NAD27 / TM Alaska State Plane, Zone 4 (5004), US feet r Operator Chevron North Reference True Area Cook Inlet, Alaska (Offshore) Scale 0.999993 Field McArthur River Field Horizontal Reference Point Slot Facility STEELHEAD Platform Vertical Reference Point Actual Datum (RKB) Slot slot #B2-12 MD Reference Point Actual Datum (RKB) Well Plan M -08 Field Vertical Reference mean sea level Wellbore Plan M -08 Actual Datum (RKB) to Facility Vertical Datum 160.25 ft Wellpath M- 08_Version #11 Actual Datum (RKB) to mean sea level 160.25 ft Wellbore Last Revised 03/31/2009 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Ulricard Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 17.21° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] Slot Location - 1033.35 601.91 214217.16 2499466.33 60 °49'54.627 "N 151 °36'05.876 "W Facility Reference Pt 213640.71 2500514.08 60 °50'04.803 "N 151 °36'18.018 "W • Field Reference Pt 213640.71 2500514.08 60 °5904.803 "N 151 °36'18.018 "W TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [1 [°] [ft] [ft] [ft] [ft] (sry ft] [sry ft] [ °I100ft] [°] [ ° /100ft] [ ° /100ft] [ft] 0.00 0.00 10.00 0.00 - 160.25 0.00 0.00 214217.16 2499466.33 60 °49'54.627 "N 151 °36'05.876'W 0.00 0.00 0.00 0.00 0.00 100.00 0.00 10.00 100.00 -60.25 0.00 0.00 214217.16 2499466.33 60 °49'54.627 "N 151 °3905.876'W 0.00 0.00 0.00 0.00 0.00 200.00 0.00 10.00 200.00 39.75 0.00 0.00 214217.16 2499466.33 60 °49'54.627 "N 151°36'05.876'W 0.00 0.00 0.00 0.00 0.00 300.00 0.00 10.00 300.00 139.75 0.00 0.00 214217.16 2499466.33 60 °49'54.627 "N 151 °36'05.876'W 0.00 0.00 0.00 0.00 0.00 400.00 0.00 10.00 400.00 239.75 0.00 0.00 214217.16 2499466.33 60 °49'54.627 "N 151 °36'05.876'W 0.00 0.00 0.00 0.00 0.00 485.00 0.00 10.00 485.00 324.75 0.00 0.00 214217.16 2499466.33 60 °4954.627 "N 151 °36'05.876'W 0.00 0.00 0.00 0.00 0.00 500.00 0.00 10.00 500.00 339.75 0.00 _ 0.00 214217.16 2499466.33 60 °49'54.627 "N 151 °36'05.876'W 0.00 0.00 0.00 0.00 0.00 600.00 0.00 10.00 600.00 439.75 0.00 0.00 214217.16 2499466.33 60 °49'54.627 "N 151 °36'05.876'W 0.00 0.00 0.00 0.00 0.00 700.00 0.00 10.00 700.00 539.75 0.00 0.00 214217.16 2499466.33 60 °49'54.627 "N 151 °3905.876'W 0.00 0.00 0.00 0.00 0.00 800.00 0.00 10.00 800.00 639.75 0.00 0.00 214217.16 2499466.33 60 °49'54.627 "N 151 °36'05.876'W 0.00 0.00 0.00 0.00 0.00 900.00 0.00 10.00 900.00 739.75 0.00 0.00 214217.16 2499466.33 60 °49'54.627 "N 151°3905.876'W 0.00 0.00 0.00 0.00 0.00 1000.00 0.00 10.00 1000.00 839.75 0.00 0.00 _ 214217.16 2499466.33 60 °4954.627 "N 151 °36'05.879W 0.00 10.00 0.00 0.00 0.00 ■ 1100.00 1.00 10.00 1099.99 939.74 0.86 _ 0.15 214217.33 2499467.18 60 °4954.636 "N 151 °36'05.873'W 1.00 0.00 1.00 0.00 0.87 1200.00 2.00 10.00 1199.96 1039.71 3.44 0.61 214217.85 2499469.75 60 °49'54.661 "N 151 °36'05.864'W 1.00 0.00 1.00 0.00 3.46 1300.00 3.00 10.00 1299.86 1139.61 7.73 1.36 214218.71 2499474.02 60 °49'54.703 "N 151 °36'05.848'W 1.00 0.00 1.00 0.00 7.79 1400.00 4.00 10.00 1399.68 1239.43 13.74 2.42 214219.92 2499480.01 60 °49'54.762 "N 151 °36'05.827'W 1.00 0.00 1.00 0.00 13.85 133/8 "csg 1500.00 5.00 10.00 1499.37 1339.12 21.47 3.79 214221.47 2499487.70 60 °49'54.839 "N 151 °36'05.800'W 1.00 0.00 1.00 0.00 21.63 1600.00 6.00 10.00 1598.90 1438.65 30.91 5.45 214223.36 2499497.09 60 °49'54.931 "N 151 °36 1.00 180.00 1.00 0.00 31.14 1700.00 5.00 10.00 1698.44 1538.19 40.35 7.11 214225.26 2499506.49 60 °49'55.024 "N 151°36'05.732'W 1.00 180.00 -1.00 0.00 40.65 1800.00 4.00 10.00 1798.13 1637.88 48.08 8.48 214226.81 2499514.18 _ 60°49'55.101"N 151°36'05.709W 1.00 180.00 -1.00 0.00 48.43 1900.00 3.00 10.00 1897.95 1737.70 54.09 9.54 214228.01 2499520.16 60 °49'55.160 "N 151 °36'05.684'W 1.00 180.00 -1.00 0.00 54.49 2000.00 2.00 10.00 1997.85 1837.60 58.38 10.29 214228.88 2499524.44 60 °49'55.202 "N 151 °36'05.668'W 1.00 180.00 -1.00 0.00 58.82 2100.00 1.00 10.00 2097.81 1937.56 60.96 10.75 214229.39 2499527.01 60 °49'55.227 "N 151 °3905.659'W 1.00 180.00 -1.00 0.00 61.41 2200.00 0.00 358.98 2197.81 2037.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.656'W 1.00 0.00 -1.00 0.00 62.28 2300.00 0.00 358.98 2297.81 2137.56 61.82 10.90 214229.57 2499527.86 604955.236'N _ 151 °36'05.656' W 0.00 0.00 0.00 0.00 62.28 2400.00 0.00 358.98 2397.81 2237.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.656'W 0.00 0.00 0.00 0.00 62.28 2500.00 0.00 358.98 2497.81 2337.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151°36'05.656'W 0.00 0.00 0.00 0.00 62.28 2600.00 0.00 358.98 2597.81 2437.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.656'W 0.00 0.00 0.00 0.00 62.28 2700.00 0.00 358.98 2697.81 2537.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.659W 0.00 0.00 0.00 0.00 62.28 2800.00 0.00 358.98 2797.81 2637.56 61.82 10.90 _ 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.656'W 0.00 0.00 0.00 0.00 62.28 2900.00 0.00 358.98 2897.81 2737.56 61.82 10.90 _ 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.656'W 0.00 0.00 0.00 0.00 62.28 3000.00 0.00 358.98 2997.81 2837.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.656'W 0.00 0.00 0.00 0.00 62.28 3100.00 0.00 358.98 3097.81 2937.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.659W 0.00 0.00 0.00 0.00 62.28 3200.00 0.00 358.98 3197.81 3037.56 61.82 10.90 _ 214229.57 2499527.86 60 °49'55.236 "N 151°36'05.656'W 0.00 0.00 0.00 0.00 62.28 3300.00 0.00 358.98 3297.81 3137.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.656 "W 0.00 0.00 0.00 0.00 62.28 3400.00 0.00 358.98 3397.81 3237.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °36'05.656'W 0.00 0.00 0.00 0.00 62.28 3500.00 0.00 358.98 3497.81 3337.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236N 151 °36'05.656'W 0.00 0.00 0.00 0.00 62.28 3600.00 0.00 358.98 3597.81 3437.56 61.82 10.90 214229.57 2499527 86 60 °49'55.236 "N 151 °36'05.656'W 0.00 0.00 0.00 0.00 62.28 3700.00 0.00 358.98 3697.81 3537.56 ' 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °3905.659W 0.00 0.00 0.00 0.00 62.28 3800.00 0.00 358.98 3797.81 3637.56 61.82 10.90 214229.57 2499527.86 60 °49'55.236 "N 151 °36.05.656'W 0.00 -1.02 0.00 0.00 62.28 3900.00 3.00 358.98 3897.76 3737.51 64.44 10.85 214229.58 2499530.48 60 °49'55.262 "N 151°36'05.657'W 3.00 0.00 3.00 0.00 64.76 4000.00 6.00 358.98 3997.44 3837.19 72.28 10.71 214229.63 2499538.32 60 °49'55.339 "N 151 °36 3.00 0.00 3.00 0.00 72.22 4100.00 9.00 358.98 4096.58 3936.33 85.33 10.48 214229.72 2499551.37 60 °49'55.467 "N 151 °36'05.665'W 3.00 0.00 3.00 0.00 84.61 4200.00 12.00 358.98 4194.89 4034.64 103.55 10.16 214229.84 2499569.59 60 °4955.647"N 151 °3905.671'W 3.00 0.00 3.00 0.00 101.92 4300.00 15.00 358.98 4292.12 4131.87 126.89 9.75 214230.00 2499592.94 60 °49'55.877 "N 151 °3905.679W 3.00 0.00 3.00 0.00 124.09 4400.00 18.00 358.98 4387.99 4227.74 155.28 9.24 214230 19 2499621.33 60 °49'56.156 "N 151°36'05.690'W 3.00 0.00 3.00 0.00 151.06 4435.03 19.05 358.98 4421.20 4260.95 166.41 9.04 214230.26 2499632.46 60 °49'56.266 "N 151 °36'05.694'W 3.00 0.00 3.00 0.00 161.63 • Page 1 of 2 TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Ratc Turn Rate Vert Sect Comments [ft] [°] [°] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ /100ft] [°] [ ° /100ft] [° /100ft] [ft] 4500.00 19.05 358.98 4482.61 4322.36 187.61 8.67 214230.40 2499653.67 60 °49'56.475 "N 151°36'05.701" 0.00 0.00 0.00 0.00 181.78 4600.00 19.05 358.98 4577.14 4416.89 220.25 8.09 214230.62 2499686.31 60 °49'56.796 "N 151°36'05.713' 0.00 0.00 0.00 0.00 212.78 4700.00 19.05 358.98 4671.66 4511.41 252.88 7.51 214230.84 2499718.95 60 °49'57.117 "N 151°3605.725' 0.00 0.00 0.00 0.00 243.78 4800.00 19.05 358.98 4766.18 4605.93 285.52 6.93 214231.05 2499751.59 60 °49'57.439 "N 151 °3605.736' 0.00 0.00 0.00 0.00 274.78 _ 4900.00 19.05 358.98 4860.70 4700.45 318.15 6.35 214231.27 2499784.23 60 °49'57.760 "N 151°36'05.748' 0.00 0.00 0.00 0.00 305.79 5000.00 19.05 358.98 4955.23 4794.98 350.79 5.77 214231.49 2499816.87 60°49'58.081"N 151°36'05.760' 0.00 0.00 0.00 0.00 336.79 5100.00 19.05 358.98 5049.75 4889.50 383.43 5.19 214231.71 2499849.51 60 °4658.403 "N 151 °36'05.771' 0.00 0.00 0.00 0.00 367.79 5200.00 19.05 358.98 5144.27 4984.02 416.06 4.61 214231.92 2499882.15 60 °49'58.724 "N 151 °36'05.783' 0.00 0.00 0.00 0.00 398.79 5249.48 19.05 358.98 5191.04 5030.79 432.21 4.32 214232.03 2499898.30 60 °49'58.883 "N 151°36'05.789' 0.00 33.41 0.00 0.00 414.13 5300.00 19.90 0.62 5238.67 5078.42 449.05 4.27 214232.39 2499915.14 60 °49'59.049 "N 151 °3605.790' 2.00 31.87 1.68 3.24 430.21 _ 5325.00 20.33 1.38 5262.15 5101.90 457.65 4.42 214232.75 2499923.73 60 °49'59.134 "N 151 °3605.787' 2.00 31.16 1.71 3.04 438.46 95 /8 "cst 5400.00 21.63 3.48 5332.18 5171.93 484.47 5.57 214234.56 2499950.51 60 °49'59.398 "N 151 °36'05.764' 2.00 29.19 1.73 2.81 464.42 5500.00 23.39 5.94 5424.56 5264.31 522.61 8.75 214238.66 2499988.56 60 °49'59.773 "N 151 °3605.700' 2.00 26.92 1.77 2.46 501.79 5600.00 25.19 8.07 5515.70 5355.45 563.42 13.79 214244.70 2500029.24 60 °50'00.175 "N 151°36'05.598' 2.00 24.98 1.80 . 2.13 542.27 5700.00 27.01 9.93 5605.50 5445.25 606.87 20.69 214252.66 2500072.50 60 °50'00.603 "N 151 °36'05.459' 2.00 23.31 1.83 1.86 585.82 5800.00 28.86 11.57 5693.85 5533.60 652.89 29.45 214262.53 2500118.29 60 °50'01.056 "N 151°36'05.282' 2.00 21.86 1.85 1.64 632.37 5900.00 ®' ®' 5780.63 '® s 2500166.56 60 °50'01.534 "N 151 °36'05.068' MEM 20.60 L 6000.00 MEEM_®' MENEEMZEM 60 ° 50'02.036N ®EIFEE1 6100.00 34.50 15.51 5949.07 5788.82 805.82 66.72 214303.52 2500270.27 60 'N 151 °36'04.530' 2.00 18.50 1.89 1.18 789.47 6114.94 34.78 15.68 5961.37 5801.12 814.00 69.00 214306.01 2500278.39 60 •50'02.643 "N 151 °36'04.484' 2.00 0.00 1.90 1.11 797.97 6200.00 MMIEN=MaillIMEEI®� M11.1111BEECEEI r r 60 °50'03.103 "N 151°36'04.22o' 0.00 0.00 0.00 0.00 6300.00 34.78 15.68 6113.37 5953.12 915.63 97.52 214337.00 2500379.30 60 °5603.644 "N 151 °36'03.909' 0.00 0.00 0.00 0.00 903.49 6400.00 34.78 15.68 6195.50 6035.25 970.55 112.93 214353.75 2500433.82 60 °5604.184 "N 151 °36'03.598' 0.00 0.00 0.00 0.00 960.51 6500.00 34.78 15.68 6277.64 6117.39 1025.47 128.34 214370.49 2500488.35 60 °50'04.725 "N 151 °36'03.287' 0.00 0.00 0.00 0.00 1017.53 6600.00 34.78 15.68 6359.77 6199.52 1080.39 143.76 214387.24 2500542.88 60 °50'05.266 "N 151 °3602.976' 0.00 0.00 0.00 0.00 1074.55 6700.00 34.78 15.68 6441.91 6281.66 1135.31 159.17 214403.99 2500597.40 60 °5605.807 'N 151°3602.665' 0.00 0.00 0.00 0.00 1131.57 6800.00 MIIMEEMBEIE .1EMEIMMEM=RIZEMEMMEll 2500651.93 60 °50'06.348 "N'' T 0.00 0.00 0.00 0.00 1188.59 6900.00 MMEMIIII. 6606.18 IMMEEIMEZEI 189.99 mama 2500706.46 60 °50'06.889 "N 151 °36'02.043 "W 0.00 0.00 0.00 0.00 700000 =MEEMZIE 6688.32 MM,E. 1300.07 MOMMIIEZMEEI 2500760.99 60 °50'07.429 "N 151 °36'01.732" 0.00 0.00 0.00 0.00 MEMO 7100.00 34.78 15.68 6770.45 6610.20 1354.99 220.81 214470.98 2500815.51 60 °50'07.970 "N 151 °36'01.421' 0.00 0.00 0.00 0.00 1359.65 7200.00 34.78 15.68 6852.59 6692.34 1409.91 236.23 214487.72 2500870.04 60 °50'08.511 "N 151 °36'01.110' 0.00 0.00 0.00 0.00 1416.67 7289.38 34.78 15.68 6926.00 6765.75 1459.00 250.00 214502.69 2500918.78 60 °50'08.994 "N 151 °36'00.832' 0.00 77.82 0.00 0.00 1467.64 7300.00 34.82 16.04 6934.72 6774.47 1464.83 251.66 214504.49 2500924.56 60 °5609.052 "N 151 °3600.799' 2.00 77.52 0.43 3.42 1473.70 7400.00 35.30 19.42 7016.58 6856.33 1519.53 269.15 214523.32 2500978.82 60 °50'09.590 "N 151 °3600.446' 2.00 74.76 0.48 3.38 1531.13 7450.40 35.58 21.09 7057.64 6897.39 1546.95 279.27 214534.10 2501005.98 60 °50'09.860 'N 151°36'00.242' 2.00 0.00 0.55 3.32 1560.31 . 7500.00 35.58 21.09 7097.98 6937.73 1573.87 289.66 214545.14 2501032.64 60 °5610.126 "N 151 °36'00.032' 0.00 0.00 0.00 0.00 1589.10 7600.00 35.58 21.09 7179.31 7019.06 1628.16 310.59 214567.40 2501086.40 60 °50'10.660 "N 151 °35'59.610' 0.00 0.00 0.00 0.00 1647.15 7700.00 35.58 21.09 7260.64 7100.39 1682.45 331.53 214589.65 2501140.16 60 °50'11.195 "N 151 °35'59.187' 0.00 0.00 0.00 0.00 1705.20 7800.00 35.58 21.09 7341.97 7181.72 1736.73 352.47 214611.91 2501193.92 60 °5011.729 "N 151 °35'58.765' 0.00 0.00 0.00 0.00 1763.26 7900.00 35.58 21.09 7423.30 7263.05 1791.02 373.41 214634.17 2501247.68 60 °50'12.264 "N 151 °3658.342' 0.00 0.00 0.00 0.00 1821.31 8000.00 35.58 21.09 7504.63 7344.38 1845.31 394.34 214656.42 2501301.44 60 °50'12.798 "N 151 °3657.920' 0.00 0.00 0.00 0.00 1879.36 8100.00 35.58 21.09 7585.96 7425.71 1899.59 415.28 214678.68 2501355.20 ' 60 °50'13.333 "N 151°35'57.497' 0.00 0.00 0.00 0.00 1937.41 8200.00 MEEIMMISEEMMMEOMEEMIERMEINIMEM 214700.93 2501408.96 60 °50'13.868 "N 0.00 0.00 0.00 0.00 1995.46 8300.00 IllESECEMOMMEIMEINIEMIMMEXEIMMMEMZEMI 2501462.72 60 °50'14.402 "N�- • T 0.00 0.00 0.00 0.00 8400.00 mommiglin 7829.95 7669.70 11111330311111COMMEIMEM 2501516.48 60 °50'14.937 "N ' Tr T 0.00 0.00 0.00 0.00 8500.00 ������ 2501570.231 60 °50'15.471 "Nr T 0.00 0.00 0.00 0.00 8600.00 IINEEMMOIMMEEMEMMEIMMIENEMCE 214789.96 2501623.99 60 °50'16.006 "N�' TT 0.00 0.00 0.00 0.00 OREM 8671.79 35.58 21.09 8051.00 7890.75 2210.00 535.00 214805.94 2501662.59 60 °50'16.390 'N 151 °3655.082' 0.00 96.14 0.00 0.00 2269.34 8700.00 35.52 22.06 8073.95 7913.70 2225.25 541.03 214812.34 2501677.69 60 °50'16.540"N 151 °35'54.960' 2.00 95.36 -0.20 3.42 2285.69 8800.00 35.39 25.50 8155.41 7995.16 2278.32 564.41 214837.00 2501730.17 60 °50'17.062 "N 151 °35'54.488' 2.00 92.55 -0 .14 3.44 2343.30 8900.00 35.35 28.95 8236.97 8076.72 2329.77 590.87 214864.72 2501780.96 60 °50'17.569 "N 151 °35'53.954' 2.00 89.74 -0 .04 3.46 2400.28 9000.00 35.40 32.41 8318.52 8158.27 2379.54 620.40 214895.45 2501829.99 60 °50'18.059 "N 151 °35'53.359' 2.00 86.92 0.06 3.45 2456.56 9100.00 35.56 35.84 8399.95 8239.70 2427.57 652.95 214929.16 2501877.22 60 'N 151 °35'52.702' 2.00 84.12 0.16 3.44 2512.07 9190.57 35.79 38,92 8473.54 8313.29 2469.53 685.01 214962.24 2501918.38 60 °5618.945 'N 151 °35'52.055' 2.00 0.00 0.25 3.40 2561.64 9200.00 35.79 38.92 8481.18 8320.93 2473.82 688.48 214965.81 2501922.58 60 °50'18.988 "N 151 °3651.985' 0.00 0.00 0.00 0.00 2566.76 9300.00 35.79 38.92 8562.31 8402.06 2519.31 725.22 215003.64 2501967.16 60 °50'19.435 "N 151 °35'51.244' 0.00 0.00 0.00 0.00 2621.09 9396.08 35.79 38.92 8640.25 8480.00 2563.02 760.52 215040.00 2502010.00 60 °50'19.866 'N 151 °3650.531' 0.00 0.00 0.00 0.00 2673.29 9400.00 35.79 38.92 8643.43 8483.18 2564.81 761.96 215041.48 2502011.75 60 050'19.883 "N 151 °3650.502' 0.00 0.00 0.00 0.00 2675.41 9500.00 MEENIMIDEEMMEMEI 8564.30 2610.30 798.69 IIMIEMIMEEMEI 60 •5020.331 "N 151 °35'49.761' 0.00 0.00 0.00 0.00 ° 9543.70 35.79 38.92 • 8760.00 8599.75 2630.18 814.75 215095.85 2502075.81 60 °50'20.527 "N 151 °35'49.437' 0.00 0.00 0.00 0.00 2753.48 7" Liner Page 2 of 2 • • Formation Integrity Test (FIT) and Leak -Off Test (LOT) Procedures Note that the terms used in the procedures and the spreadsheet of FIT /LOT results are defined as follows: • Formation Integrity Test (FIT) - Formation is tested to a pre- determined equivalent mud weight. • Leak -Off Test (LOT) - Pressure is exerted against the formation until fluid begins to discernibly pump away. Pressure at which this first occurs is the leak -off point. • LOT Limit - 16.0 ppg EMW for all surface casing shoe tests; determined from previous experience with formation breakdown problems by attempting higher leak -offs. • Open Hole LOTs (OH LOTs)- Leak -off tests performed with open hole from the casing shoe to some point above the target reservoir. Generally done when leak -off is required but could not be achieved just below the casing shoe; or where weaker formations are suspected above the target reservoir but below the casing shoe, and assurance is required of being able to achieve estimated mud weight. Procedure for FIT: 1. Drill 20' of new hole below the casing shoe. 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer (ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drillpipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1- minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre- determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Formation integrity tests are conducted on all casing shoes with the exception of some surface casing situations. Where annular pumping will be done on a well, the formation below the surface shoe is taken to leak -off. This ensures that future disposal fluids can pumped away without risk of damage to the surface shoe. If two attempts at establishing leak -off at the shoe are unsuccessful (using 16.0 ppg EMW LOT limit per definition above), then an open -hole LOT is performed. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre- determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. • • _ Chevron Plot reference wellpath is M 08_Vers on #1/ FA•■ True vertical depths are referenced to Actual Datum (RKB) Grid System: NAD27 / TM Alaska State Plane, Zone 4 (5004), US feet BAKER Measured depths are referenced to Actual Datum (RKB) North Reference: True north ,, HUGHES ONO Actual Datum (RKB) to mean sea level: 160.25 feet • Scale: True distance INTEQ mean sea level to Mud line (Facility: STEELHEAD Platform): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: ulricard on 4/21/2009 Well Profile Data Design Comment MD (ft) Inc (°) As ( °) TVD (ft) Local N (ft) Local E (ft) DLS (7100ft) VS (11) Tie On 000 0.000 10.000 0.00 000 0.00 000 0.00 End of Tangent 48500 0000 10000 48600 0.00 000 000 0.00 End of Tangent 1000.00 0.000 too co 1000.00 0.00 000 0 00 0.00 End of Build 1600.00 6.000 10.000 1598.90 3001 5.45 1.00 31.14 End of Drop 220000 0.000 358.983 2197.81 61.82 10.90 100 62.28 End of Tangent 380000 0.000 358.983 3797.81 61.82 1090 000 62.28 End of Build 4435.03 19.051 358.983 4421 20 166.41 9.04 3.00 161.63 End of Tangent 524048 19.051 358983 5191.04 432.21 4.32 000 414.13 End of 30 Arc 6114.94 34779 15.675 596137 81400 69.00 2.00 79797 End of Tangent 7289.38 34779 15075 6926.00 145000 25000 0.00 146764 End of 3D Arc 7450.40 35.580 21091 7057.84 1546.95 27027 200 156031 End of Tangent 8671.79 35.580 21 091 8051.00 221000 535.00 0.00 226934 End of 3D Arc 919057 35.786 38.923 8473.54 246053 685 01 200 2561.64 End of Tangent 939808 35.786 30923 864025 258302 760.52 0.00 267329 End of Tangent 9543.70 35788 38 923 8760.00 263018 814.75 0.00 2753.48 Scale 1 inch = 30 ft Easting (ft) -150 -135 -120 -105 -90 -75 -80 -45 -30 -15 0 15 30 45 iss rl 9 17 0 8 e # 1 185 K b 150 op 150 c' 1600 1300 1600 1900 135 135 1600 4300 120 • ` 000 105 • 105 4 f' 1.0• 1300 90 1600 4300 ' 1 300 1000 1 r•• 1300 • • +•4 75 Z 75 1 °' o m 3700 %►i� 4 r • r V. E 1300 . . 00 0 11 J A . A< •d. 2500 2214 00 cci ` L kA- Z 60 0 r. � / Li� c9 • �,• 1900 � 3100 '0 0 0.0 1000 000 45 1300 - 45 1 I et 40 14 tr 2800 '0+4 ■ ... 1600 1000 ' .; • . - 30 ygp� • � 9 2500 :. 1••• 140.. 15 - 2 900 / �,$ 1lP1 .'e in 1900 300 1600 i 1.00 0 1 1300 4b •••0 3400 - 0 1000 0 A 0 0 <> o° * Of 4 46- t5 ' ¢ : � 1900 ° '0l w,l'r1i 1 ' C -30 .! er N, 1000 - -30 11 1 1 ` 1 I I 1 I 1 1 a 1 1 -150 -135 -120 -105 -90 -75 -60 -45 -30 -15 0 15 30 45 Scale 1 inch = 30 ft Easting (ft) • • • Chevron Plot reference wellpath is M- O8_Version#11 BA R True vertical depths are referenced to Actual Datum (RKB) Grid System: NAD27 / TM Alaska State Plane, Zone 4 (5004), US feet HUGHES Measured depths are referenced to Actual Datum (RKB) North Reference: True north 1 NTEQ Actual Datum (RKB) to mean sea level: 160.25 feet Scale: True distance mean sea level to Mud line (Facility: STEELHEAD Platform): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: ulricard on 4/21/2009 Scale ind,_10Un Easting (ft) 1000 -200 -150 -100 -50 0 50 100 150 200 250 300 350 400 • I 4bUU * I I I I I I I 1 N I I 1 1000 0 Q. 6400 950 — — 950 900 _ 6100 _ 900 850 — / 850 4' 800 — — 800 4•a • 4900 750 ■ — 750 6100 5 IP 5800 700 — — 700 6400 B50 — — 650 600 — — 600 Z 0 0) C S _ 5500 5800 E 550 6100 — 5 50 tp 0 • Z '''r 200 500 — — 500 9.625n Casing 1 17 450 — ■ 450 5200 400 — 5500 5800 400 350 — 4600 — 350 4900 300 — 300 .200 5500 550• t, en 250 — — 250 r 4600 4300 200 52 r ° r r t # — 200 ;400 _ 750 150 0 a 4900 4300 w/3 4600 6, 1 1 I 1 I I I 1 I I I I I -200 -150 -100 -50 0 50 100 150 200 250 300 350 400 Scale 110..103 ft Easting (ft) • Chevron Plot reference wellpath is M-08 Versi t • • /1,/ li True vertical depths are referenced to Actual Datum (RKB) Grid System: NAD27 / TM Alaska State Plane, Zone 4 (5004), US feet BAKER Measured depths are referenced to Actual Datum (RKB) North Reference: True north Iiiiill Actual Datum (RKB) to mean sea level: 16025 feet Scale: True 6stance mean sea level to Mud line (Facility: STEELHEAD Platform); 0 feet Depths are in feet INTEQ Coordinates are in feet referenced to Slot Created by: ulricard on 4/21/2009 Scale 1 inch = 200 ft Easting (ft) - 100 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 I 1 I I I I I I I I /, H I I I 2700 — 88 r of co co — 2700 C �l i P600 — — 2600 M - 2500 — — 2500 2400 — — 2400 8200 s� 2300 - 8200 7600 — 2900 2200 — — 2200 7900 7900 2100 — — 2100 7300 2000 6400 — 2000 I 1900 — 7600 — 1900 7600 6 1r oZ Or 8800 c 7000 -C 1800 — — 1800 co 0 0 Z 641 G N, '' 704§ 1700 — 7300 8500 — 1700 6711 6700 7300 1600 ?B00 6700 — 1600 000 • 200 1500 — 7000 — 1500 6400 7000 7 rt' 1400 — 900 — 1400 '� 1300 — 6700 — 1300 7;'v;% 7600 , ® 8214 1200 6700 r r — 1200 8800 88'' 1100 — 6400 7300 7900 Gv7 O — 1100 8500 7600 1000 — '• 1000 6400 7000 8200 C' ut 6100 8400 q� 900 r 1 9 1 1 1 1 1 1 1 1 1 1 1 1—. 900 -100 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 Scale 1 inch = 200 ft Easting (ft) . • f le Tr v . • G 1 i - , / U' ,cUOps1 - - I , 21 , 2 ANNULAR I .P ! STACK LEVEL II O u u INSPECTION 0LIFTING DEVICE UN= !-2-- --! I♦UN (ROTATED FOR CLARITY) —4 IIN I 111111'I'UI -, Nil • `II • Iii... _ I-l`� I • 'II' 2 - ATE HRAMS YDRA � DOUBIE GATE PICKING POINT • • � - I I _II0 I- U', :L_ RAMS & CENTER OF GRAVITY `P).,� MIM S� - O �.�.� ��IfI s RUBBERS 20' -6" HVD KILL LINE . CHOKE LINE \ 1 1 /�1 C � . � MUD CROSS 3,000psI HUB �3 MUD CROSS C ,$ c - ,1 1 - _ a 203/ 3,000pU HUB U : 7; -- - 20- 314 HYDRIL _ I I�I _ SINGLE GATE RAM 6' �� O4 16' DIVERTER LINE I_��IIIII _�7Ia 16" DIVERTER LINE O4 203/03, 3 t �� � f DIVERTER SPOOL w/ ���•�,el `wI �It /I�i i' (2) NT2 CONNECTOR XO -- — --- IMUS Melanie o � ERTFiin & (2) ,6• ANSI 600 DIVERTER VALVES 203/4 - - NT2 CONNECTOR '�� 4 j 01 STACK LEVEL II INSPECTION 0 RAMS & RUBBERS 0 MUD CROSS O 5 RISER & NT2 CONNECTIONS O4 DIVERTER SPOOLS 05 RISER & NT2 CONNECTIONS 41' -5" 0 LIFTING DEVICE 20-3/0 3,000 I RISE R 1�l 6 PA , 203/0' SE 3,0 001SI it R VETCO 203/4 NIIIIII, NT2 CONNECTOR - a�.t VETCO NT2 HEAD ' I I evl on p EELHEA PLATFORM 6' ANSI 600 RT 21. PLANA / 3M BOP STACK -UP Na IELSER woe w,r ..EsAum ALA ■ /LM • i l.• 4 \ b . CHOKE MANIFOLD N • • TO GAS BUSTER • TO DERRICK VENT TO SHALE SHAKERS • A 1 U U -- • MIME . � . =>• 4 IMMO _ • te) ,( . \ ,,, .., • • li........0 �� . 1 Ilii • ii i _ 1 ri1i1 CI / ' 1 I I.! , \ . . t • .. ' ' ". II:ilf;.:. NI I I as : — I i;,;, ) • 1 ::-.;„ : : - C" . - : iii V t� ` ,, atall r":11101% 1 I l it 7! .1 111110.1111111 11111Nr u m I .r f ,I -e. .s ir � A t 1C I ,:,t4'i ■ !'1111 mg p ' .. a ' I " SWACO CHOKE LINE u A 1111111111•11 1111111111•11 SECTION AA * AU. VALVES IN FLOW PATH ARE 3 -1/15' 5000 PSI CAMERON GATE TYPE • TRANSMITTAL LETTER CHECKLIST WELL NAME PTD# / Development Service Exploratory Stratigraphic Test Non - Conventional Well • �e /6.....1.,„1/4 Circle Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are — between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(1), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce / inject is contingent upon issuance of a conservation order approving a spacing exception. . assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: Non - Conventional production or production testing of coal bed methane is not allowed Well for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 7/13/2007 WELL PERMIT CHECKLIST Field & Pool MCARTHUR RIVER, MIDKENAI GAS - 520550 Well Name: TRADING BAY UNIT M -08 Program DEV Well bore seg ❑ PTD#: 2090580 Company UNION OIL CO OF CALIFORNIA Initial Class/Type DEV / PEND GeoArea 112 Unit 12070 On /Off Shore Off Annular Disposal ❑ Administration 1 Permit ree_attached NA 2 _Lease number appropriate Yes Entire_well in_AD116730 3 _Unique well name and number Yes 4 Well located in a defined pool Yes Middle Kenai Gas Pool,_ governed_by C0.22$ as amended by 00.228.02 5 Well located proper distance from drilling unit boundary Yes 00 228 Rule 1_ established 10 -acre drilling units_for the_pool:, well will conform 6 Well located proper distance from other wells Yes Nearest well open to same interv_als will_be proposed M -06 well, about 2600' to_N.E. 7 Sufficient Kresge avaUablein_ drilling unit Yes 8 Jf deviated, is wellbcre plat included Yes 9 Operator onty affected party Yes 10 Operator has appropriate bond in_forcet Yes 11 Per_mIt can be issued without conservation order Yes Appr Date 12 - Permit can be issued without administrative approval Yes • SFD 6/2/2009 13 Can permit be approved before 15- day_walt Yes 14 Well Jocated within _area and strata authorized_by Jnjection Order # (put I0# in_comments) (For _ _ _ NA 15 Ali wells within 1/4 mile area of review Identified_ (For service well only) NA 16 .Pre produced_injector: _ duration of pre- production less than 3months (For service welionly). NA 17 _N.onconven._gas conforms to AS31,05,030(1.t.A),0,2.A -D) NA 18 Conductor string provided Yes Set g 480', Engineering 19 Surface casing protects all known USDWS Yes 20 _CMT_vol adequate to.clrcuJate on conductor_& surf csg Yes Adequate excess amt, 21 CMT_vol_adequate to tie Jn_long string to _surf csg Yes T00 345'. 22 CMT.wilt coyer all known productive horizons Yes 23 Casing deslgns_adequatg for 0. T, J3_& permafrost Yes Min SF 1,81 24 Adequate tankage or_reserve it Yes Steelhead platform rtg. 25 If_a_re drill, has a 10 -403 forabandonment approved NA New well. 26 Adequate weilbore separ_ation_proposed Yes NQ spacing exception required, 27 _If_diverter required,_does_it.meet regulations No Vent line variance required Appr Date 28 _ Driling_ ftutd_program_sohematic& equip_Iist_adequate Yes Max MW_9.2_ppg, as required. Ilk WGA 6/4/2009 29 BOPEs, do they meet regulation Yes 3M ramps rating,.2M annular psi rating. 30 _BOPEpress rating_appropriate. test to_(put prig In comments) Yes MASP 2996 psi;_test ram SQP_Eto 3000 psi 31 _Chokemanifoldcomplies w /APl RP -53 (May 84) Yes 5M psi rating. 32 Work will occur_without operation_Shutdown Yes 33 is prosenceof H2$ gas probable Yes H2S on platform. 34 _Mechanical condition of wells within AOR Verified (For service well only) NA 35 Permit can be_ issued w/o hydrogen sulfide measures No Steelhead Platform isa designated H2S drill site. Geology 36 Datapresented on potential overpressure zones Yes UNDER - pressured to8,5 ppg EMW is expected. Drilling hazards summary discusses_mitigation measures Appr Date 37 Seismic analysis of shailowgas zones NA Development weil,_butdrilling hazards summary discussesJikelihood of_shallow gas_and mitigation measures. SFD 6/2/2009 38 Seabed condition_survey (if offshore) NA 39 Contact name /phone_for weekly_progress reports jexploratcry only] NA Geologic Engineering is Date: Date '�. er Date Commi ioner: Commissioner: I) Qi PO 06 &757709 Wis4