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Home My WebLink About209-166 • 0 Image Project Well History File 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. Qoq- I ( Well History File identifier Organizing (done) ❑ Two -sided IHIII IIJHIIII ❑ Rescan Needed 1 11111 1111111 R AN DIGITAL DATA OVERSIZED (Scannable) Col r Items: ❑ Diskettes, No. ❑ Maps: reyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: 144 BY: Maria Date: l / a. /s/ ID Project Proofing I 11111111111111 BY: Maria Date: 7//6/1c),... /s/ MP Scanning Preparation cl x 30 = Coo + / = TOTAL PAGES t!' (Count does not include cover sheet) W � JD BY: ( Maria) Date: 7//61/ /s/ Production Scanning 111111111111111111 Stage 1 Page Count from Scanned File: 6o, (Count does include co r sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: MD Date: V/ qi /s/ M Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. 111111111111111 ReScanned 11111111111111111 BY: Maria Date: /5/ Comments about this file: Quality Checked III IIIIII III IIII III 12/22/2011 Well History File Cover Page.doc DATA SUBMITTAL COMPLIANCE REPORT 7/3/2012 Permit to Drill 2091660 Well Name /No. SAK RIVER 1BXX Operator BROOKS RANGE PETROLEUM API No. 50- 029 - 23336 -03 -00 MD TVD Completion Date Completion Status Current Status EXPIR UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr • Data Digital Dataset Log Log Run Interval OH / Type Med /Frmt Number Name Scale Media No Start Stop CH Received Comments Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? Y / N Daily History Received? Y / N Chips Received? Y / N Formation Tops Y / N Analysis Y / N Received? Comments: • L x Compliance Reviewed By: \"'" ✓ �,._‘1 1111 • FT\ FF' r.1 SEAN PARNELL, GOVERNOR iikUSEk ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 g FAX (907) 276 -7542 Mr. Doug Hastings VP- Exploration Brooks Range Petroleum Corporation 510 L Street, Suite 601 Anchorage, AK 99501 Re: Exploratory, Sak River 1B Brooks Range Petroleum Corporation Permit No: 209 -166 Surface Location: 3.329' FSL, 1,625' FEL, Si, T12N, R12E, UM Bottomhole Location: 1,519' FSL, 2,853' FEL, S25, T13N, R12E, UM Dear Mr. Hastings: Enclosed is the approved application for permit to drill the above referenced exploration well. This permit to drill does not exempt you from obtaining additional permits or approvals 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. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. 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 any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). Sincerely, / / Daniel T. eamount, Jr. Chair DATED this day of December, 2009 cc: Department of Fish 86 Game, Habitat Section w/o encl. (via e -mail) Department of Environmental Conservation w/o encl. (via e -mail) r � STATE OF ALASKA AIWA OIL AND GAS CONSERVATION COMMON /o?ao? 49 PERMIT TO DRILL 20 AAC 25.005 1a. Type of Work: lb. Proposed Well Class: Development - Oil ❑ Service - Winj ❑ Single Zone ❑ lc. Specify if well is proposed for: Drill ❑ Redrill El Stratigraphic Test ❑ Development - Gas ❑ Service - Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Re -entry ❑ Exploratory El Service - WAG ❑ Service - Disp ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket ❑ Single Well 151 11. Well Name and Number: Brooks Range Petroleum Corporation Bond No. LPM8842196" "149844179 Sak River 1B 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 510 L Street, Suite 601, Anchorage, AK 99501 MD: 14,358' TVD: 9,112' Exploratory 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 3,329' FSL, 1,625' FEL, S1, T12N, R12E, UM ADL390429 surface / ADL390431 BHL Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1,463' FSL, 2,875' FEL, S25, T13N, R12E, UM LAS24983 1/17/2010 Total Depth: 9. Acres in Property: 14. Distance to Nearest 1,519' FSL, 2,853' FEL, S25, T13N, R12E, UM 2560 Property: 1519' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation 15. Distance to Nearest Well Surface: x - 626647 y- 6,006,061 Zone- 4 (Height above GL): 33.15 feet Within Pool: 1895' 16. Deviated wells: „ - s5 Kickoff depth: 4200 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) .� t wlS c" e.55 Maximum Hole Angle: 59 degrees Downhole: 4283 Surface: 3276 18. Casing Program: 74.. /1.-.2.5.01 Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data 9 9 p 9 9 ( 9 9 data) 24" 16" " 0.495" WT N/A Welded 80' 0' 0' 107 107 140 cf arctic set 12.25" 9 -5/8" 40# L-80 BTC -M 3,996' 0' 0' 4,025' 3,476' Cmtd to surf w/ 552 bbls 8.5" NA NA NA NA NA r VEDnned 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): f11 Sldit !3'1 Tt7i1,5 L�OSks. C i fed): Casing Length Size Cement Volume f11 Sldit U M '3 D A TVD Conductor /Structural 80' 16" 140 cu ft 107' 107' Surface 3,996' 9 -5/8" 552 bbls 4,025' 3,476' Intermediate Production Liner Perforation Depth MD (ft): NA Perforation Depth TVD (ft): NA 20. Attachments: Property Plat El BOP Sketch 0 Drilling Program 0 Time v. Depth Plot ❑ Shallow Hazard Analysis❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program ❑ 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact N.Sachivichik 575 -7156 Printed Name Doug Hastings Title VP- Exploration Signature �'"*---. Phone Date 12/19/2009 Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: 'O9/ 4 50 -a ?90?33,36O. "&D Date: /p /fJ /,9 q requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed me hane, as hydrates, or gas contained in shales: Er Other: -� /O06 Ps i, &Dr 7i Samples req'd: Yes ❑ No Mud Mud log req'd: Yes ❑ No Ikr ,L.�/ y 1 H measures: Yes 2 No Directional svy req'd: Yes dNo ❑ 2500 r Ahrtw / / - gala -/1 4e; w ?-- r� / APPROVED BY THE COMMISSION / ` 2-1 2, / 7 DATE: , COMMISSIONER cm I r r C f L / Z-- Z.P'O? Form 10 - 401 (Revised 7/2009) This permit is valid for 24 months from the date of approval (20 AAC 25.005(g)) Submit in Duplicate 00:111P11011 00:111P11011 REV mn - ORIGINAL SUBMISSION DATE: 12-11191 SCALE: 1" = 200'1 SHEET: 1 OF 1 aae 1 1 ONE 1 oEa NOTES: THIS Barrow PROJECT BEAUFORT SEA 1) COORDINATES SHOWN HEREON, BASED UPON FIELD OBSERVATIONS CONDUCTED NOVEMBER 21, 2009. 2) ALL DISTANCES, COORDINATES AND ELEVATIONS ARE IN U.S. SURVEY Kaktovik FEET • • • 3) PROTRACTED SECTION LINES SHOWN HEREON ARE CALCULATED FROM Nuiqsut Deadhorse UNITED STATES RECTANGULAR SURVEY RECORDS AND ARE APROXIMATE 4) ELEVATIONS SHOWN HEREON BASED UPON ALASKA GEOID 06 (NAVD 88) \ . 5) NAD 83 VALUES SHOWN HEREON DERIVED FROM STATIC GPS SURVEY HOLDING CORS STATION "EDOC" USING TRIMBLE TGO VERSION 1.63 = PAD 1 \\\\ d ./ t1 F " , . „S EAST a2„ UESU� MOH an Ukpeagvik Inupiat Corporation Company VICINITY MAP - NOT TO SCALE AS- STAKED DRAWING OF SAK LEGEND 4 EXISTING WELL RIVER • CONTROL POINT 1 1 0 Z 40 0 loo 200 • N 76.00 N ' • OPJIE IN FEET o �, 1" = 200' 1150 .-\ � O fil CP -3 rn -o • g o N CE PPS) 0 CP -1 \ N • w W H Z 3 CP -2 • THE FOLLOWING POINTS ARE ALASKA STATE PLANE NAD83 ZONE 4 N o POINT NORTHING EASTING ELEV. DESCRIPTION N 3 35 CP -1 6005525.13 1766466.20 18.00' SET PK Q CP -2 6005424.24 1766876.63 17.84' SET PK & CP -3 6005725.18 1767155.30 16.24' SET PK BRP2 6001331.86 1765867.72 20.42' 2" AL. CAP Er on TO N NORTH SHORE 0 PAD 0 0 N 0 /I AS- STAKED DRAWING OF °c SAK RIVER PAD Z a TOWNSHIP 12 NORTH, RANGE 12 EAST, UMIAT MERIDIAN, ALASKA h BROOKS RANGE PETROLEUM DRAWN BY: KHE 1 CHECKED BY: KJP 1W.O. No: 2007 -217 //)//\ • • Brooks Range Petroleum Corporation Sak River -1B General Well Plan An exploratory Sak River -1A well will be drilled prior to SR -1B into the Kuparuk with the objective to discover an oil- bearing sandstone reservoir. The SR -1A will be P &A -d to 6,000' with open -hole cement pugs. The top cement plug will serve as a kickoff plug for the SR -1B sidetrack. The procedure below describes operational steps which will occur after the SR -1A sidetrack is P &A -d. General Well Plan • Pick up an 8 -1/2" drilling BHA and PDC bit. Oil-based mud will be used for this section. Logging while Drilling Tools will include: GR, RES, DEN, NEU, Inclination and Azimuth • Test the BHA below the rotary table. • Circulate and establish baseline parameters for clean hole ECD's with planned mud weight, pump rate, and rotary speed. Parameters should also include on and off bottom torque, on and off bottom circulating pressure, and pickup, slack off, and rotating weights. • Kick off of the cement plug set at 6,000'. Drill ahead in 8 % " hole with rotary steerable LWD -PWD system according to the directional plan. Proper hole cleaning is the major factor in successfully drilling this hole section. Build 59 deg tangent angle to TD at 14,358'MD. Perform short trip after every 1,000' or 24 hours, whichever comes first, • and run high viscosity weighted (MW + ~2 ppg) sweeps when needed throughout this hole section. Maximize pipe rotation for hole cleaning purposes. • Plans are to drill to TD with one bit. The decision to trip for a bit will be based on the drilling parameters and ability to follow the directional program. Test BOP's every 7 days. • As trips are required, follow good tripping practices. Monitor hole fill up closely on trips out and monitor returns in trip tank on trips in hole. Use top drive and circulation when tight spots are encountered. Approach tight spots with care and work through by • incrementally increasing parameters. Do not get aggressive until toolpusher and /or company man are on rig floor. • • • Check flow at first signs of all major drilling breaks. After making connections, initiate rotation before bringing up pumps. Avoid circulating in the same spot for extended periods of time to avoid excessive washout at one depth. Add lubricants as required to reduce torque and drag. • After section TD has been reached, circulate and condition mud until the borehole is clean. Pump 30 bbl high viscosity weighted sweep. • Contingency E -line program may be run at this point. Hold safety meeting prior to OH logging the section. • The Kuparuk reservoir section will be logged using E -line Dipole Sonic Log, MDT and sidewall rotary core. • After the open -hole logging program is complete, P &A the borehole to approximately 4,100' (100' inside the 9 -5/8" surface casing with three open hole cement plugs. Follow the Schlumberger recommendation for setting the cement plugs in oil -based mud. Sak River 1B will be Plugged Back and the well sus ended after the drilling program is V complete. A sundry application for the SR -1B suspension will be submitted at a later date. Prepared by Fairweather E &P Services Inc. Depth vs Days Curve Sak River-1A-1B 0 1000 2000 1 IR g Move!NU BOI'l III 3000 / 1 , 4000 'Drill 1A 8-1/2" Ho lel 5000 . 6000 = 7000 = . ti '?I w 8000 l/ a 9000 10000 . El ° g 1 in. IDH LngIng 11000 4110 I 12000 IIII IP&A 13000 . , • , I 14000 ---...r■mr 4 , gi 8-112" Hole . , 15000 , , I , , I I 1 I 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Days • • Brooks Range Petroleum Corporation SA K RIVER #1 A -16 Proposed Well Schematic le 16" conductor set @ 109' ' ., MD /TVD • s« + v s • v + R+ * 4* • • 9 -5/8 ", 40 #, L -80, BTC surf csg set at (4,025' MD/ 3,467' TVD) TOC at 10,251' MD /.��# 8,569' TVD +%•% 10.6 PPB mud TOC at 10,850' MD / �.,,� 9,168' TVD -► . ` =Q 10.6 PPB mud SR -1A 12,493'MD/9,308 TVD SR -1B TOC at 12,700' MD /'rrl 14,200'MD/9,112 TVD 10,953' TVD BOC at TD ► 41A✓1441.'` TD @ 13,110' MD / 11,348' TVD TVD nss 10/07/09 0 0 ./°?//\. Brooks Range Petroleum Corporation SA K RIVER #1 A -16 Proposed Post P &A Schematic 16" conductor set @ 109' Cement Plug 5 0 -200' above CBP MD /TVD 1 „ ” 4___ Bridge plug /retainer set at ^'200' MD 3 �,, # * V Cement Plug 4 — 100' above CBP 1 114 Bridge plug /retainer set at "'3900' MD 9 -5/8 ", 40 #, L -80, BTC surf csg set Cement Plug 100' below CBP at (4,025' MD/ 3,467' TVD) --, 41 t' ' OH Cement Plugs 1,2,3 TOC at 10,251' MD / • w 8,569' TVD w,er_.i`•...kJ , 10.6 : ,� PPg mud 1 TOC at 10,850' MD / • 9,168' TVD - ► 1 = • 8\ \ 10.6 PPg mud SR -1A SR -1B 12,493'MD/9,308 TVD TOC at 12,700' MD / • = • • 14,200'MD/9,112 TVD • 10,953' TVD Y BOCatTD • `. TD @ 13,110' MD / 11,348' TVD TVD nss 10/07/09 • Pressure Calculations, Drilling Area Risks and Waste Disposal Sak River #1B Maximum Anticipated Surface Pressure: 8 -1/2" Hole Section The maximum anticipated pressure (MASP) for the 8 -1/2" hole section in this sidetrack will be the formation pore pressure (less a full gas column to the surface) at 14,358' MD/ 9,112' TVD. Offsetting well information indicates that pore pressure at TVD will be a maximum of 9.0 g p p ppg (or 0.468 psi /ft). Calculations: 8 -1/2" hole section MASP (pore pressure) = (9,112 ft) (0.468 -0.11) = 3262 psi With MASP in the 8 -1/2" open hole section is expected to be 3262 psi and the 5,000 psi BOPE system to be used will be adequate. Well Proximity Risks: The closest wellbore to Sak River #1A is Sak River #1 located approximately 2,395' away at TD. The directional simulation indicates there is no anticipated interference expected between wellbores. Drilling Area Risks: Shale Instability Known instability issues in this area are associated with drilling the HRZ and Miluveach shales. Mitigation includes use of an oil -base mud system, minimizing directional changes through the shales and increasing mud density, if required. Hole Cleaning In the intermediate interval maintain fast drilling, practice short trips every 24 hours or 1000'MD, whichever comes first, minimize static times and run the casing as soon as practical • • after the borehole is drilled. Plotting torque and drag daily will indicate problematic trends. Report torque and pick -up, rotating, and slack off weights. Stuck Pipe due to Borehole Packoff Borehole packoff can occur due to conglomerate drilling in the Triassic and /or improper hole cleaning. Monitor cuttings loading and control drill and /or circulate out to clean hole and lower ECD. Stuck Pipe due to Differential Sticking Differential sticking occurs when BHA is across permeable sands. Maintain pipe movement (reciprocate and /or rotate) at all times helps to prevent sticking. Maintain mud weight on a lower side to control overbalance, maintain minimum low gravity solids in mud. Increasing Pore Pressure A slight ramp in pore pressure could occur across sandstone intervals. Mud weight will be adjusted accordingly to maintain 200 -300 psi overbalance. Mud loggers will monitor pit levels, background gas and other indicators of increasing pore pressure. Perform flow checks on connections and monitor trips closely to ensure proper fill up and minimize swabbing. Lost Returns Maintain mud density and rheology according to the mud program. Monitor ECDs and pit levels. Be prepared to control lost circulation with LCM according to mud plan. Bit Balling Problem should be mitigated with use of oil -base mud. Nut plugs and detergent sweeps are sometimes effective in reducing clay balling effects. H2S There is no risk of H2S in the area, there are no indications that any of the offsetting wells encountered any but that, as a precaution, the rig and mud logging units will have functioning H2S detectors. Disposal of Muds and Cuttings: All drill cuttings and waste drilling fluid will be disposed off in BP's grind and inject facility at Prudhoe Bay. N NORTH 495' CASING - ` 7 6.O' i3O1v 1.1G �N� , \ \ , ' ,e- .x g i. 35' ICE • t t � , , . - � ,. , ' z ROAD t 194.2'' a. 49 ' �, tr Ir ti A�� onro, ic 10 s ■ t r te- +; >�• " L�J ,„ \ t r .- c f to 254.' N. %SRS " ¢ ` t ` FORAKPR CAMP I '° 300 ` BROOK' A t 400' ti CAMP ,� t -�'", 500' , 0. �` � „ 30' PRELIMINARY • — 0,, ` r ,. -' ;� NORTH SHORE DRILL SITE ICE PAD 1 . / » • " .. •,,� t � . ' 4' BROOKS RANGE PETROLEUM CORPORATION Z NABORS RIG 16E , ,/- ACCESS A RON BROOKS CAMP / . 35' !CE - - , r ROAD +. 5 OMY dmb 6. vA 6. 1 2 Auo,,o Lbttii l , 7 + Yl�Yt � 2575 C Stmet Swte 200 S Aq{ 6" tt e, A''''" 59503 -2639 90I — ?63 -5 A 000 Mint NABORS AL'SHA RIG IDE ' " RIG 16E & CAMP PLACEMENT NORTH SHORE !CE PAD tAY0UT RRAYM BY alftla9 SY RPPRUIES BY REV. 408 CUPPLES ROB CuPPLES 000 0PE xk5 4. 06uR6+ro' WA' WA MI. OCT 2008 5wc. 080 40818 08000 2 ° s 3" TO VENT MATERIAL SCHEDULE (FLARE LINE) 3" TO ITEM ID DESCRIPTION GAS BUSTER 3" TO 1 4 -1/16' I0000# GATE VALVE SHAKER 2 4 -1/16" 100001 GATE VALVE e 'S; 3 4- 1/16 "x4 - 1/16 "x3 -1 /16" 100001 FLANGED TEE 18.5" OAL F to F �3 4 4 -1/16' 100001 0 16.75" OAL FLANGED SPACER SPOOL ti.7 Id 5 4- 1/16 "x4 - 1/16 "x4 - 1/16"x4- 1/16 "x3 -1/16" 100001 STUDDED 5 WAY BLOCK 61 6 4 -1/16' 100001 x 23.375' OAL FLANGED SPACER SPOOL IIIT 7 4- 1/16 "x4 - 1/16'x3 -1/16" 10000# STUDDED TEE I r '{� 8 4-1/16 100005 BLIND FLANGE 11.1 ^{ S' 9 4 -1/16" 100005 x 23.375 GAL FLANGED SPACER SPOOL r1e1 10 4- 1/16 "x4 - 1/16'x3 - 1/16" 100001 STUDDED TEE �. r � 11 4 -1/16" 100001 BLIND FLANGE eye - 12 3- 1/16" 100001 GATE VALVE ,t 13 3- 1/16" 100001 x 3" OAL DOUBLE STUDDED SPACER SPOOL C1/ 14 3 -1/16" 100001 x 2" 1502 WECO CONNECTION IS 3 -1/16" 100005 GATE VALVE • 16 17 3 -1/16" 100001 GATE VALVE 17 3-1/16" 100001 TRI -FLU HYD. CHOKE _ 18 3 -1/16" 100005 GATE VALVE 19 3- 1/16" 100001 GATE VALVE 4" TO VENT it '-' ` 20 3 -1/16" 100001 TRI -FLO HYD. CHOKE (PANIC LINE) 4 21 3 -1/16' 100001 GATE VALVE 22 3 -1 /I6" 100001 GATE VALVE 23 3- 1/16" 100005 CAMERON "H -2" 2" MAX. ORIFICE CHOKE ■ lit ..- - ill C t . 24 3 -1/16' 100001 GATE VALVE 25 3 -1/16" 100001 STUDDED CROSS _ ® O 26 3 -1/16' 100001 G FLANGE 27 3 -1/16' 100001 LATE ATE VALVE 28 3 -1 /16" 100001 x 18" OAL FLANGED SPACER SPOOL -v • 0 29 3 -1/16' 100001 GATE VALVE o r 30 3 -1/16' 100001 GATE VALVE 4 31 3 -1/16' 100005 STUDDED CROSS �: 32 3 -1/16" 100001 GATE VALVE ® It ji 33 3 -1/16" 100001 x 18' OAL FLANGED SPACER SPOOL 34 3 -1/16' 100005 GATE VALVE All © 35 3 -1/16' 100001 GATE VALVE 36 3 -1/16" 100005 STUDDED CROSS 114 P 0. • 37 3-1/16" 100001 GATE VALVE ' 1 0 38 3_1/16" 100001 x 18" OAL FLANGED SPACER SPOOL ilk 11 111) J Q "� 0 A 3 ., 0 - 1111 fir BLACK HANDLE VALVE: s NORMALLY CLOSED PRELIMINARY 1 U WHITE HANDLE VALVE: .s DESIGN s PERMISSIBLE DE AUTHORIZED A �' REPRODUCTION OR EVE NORMALLY OPEN Nabors Alaska Drilling Inc. k 2525 C Street Suite 200 Anchorage. Alaska 99503 -2639 NABORS ALASKA DRILLING 907- 263.6000 PRakcr N ABORS ALASKA DRILLING RIG 16E ME CHOKE MANIFOLD I RIG: 16E ; OCT ROB GUPPIES 0'09' ar MAC Aw6w[0 ar AUG REV Y 4 „ ND 6x 6 INLET CAT1 Dk9CR�P„0N ,E N0 . SCALE N m OCT 2008 owc 6 I OF I ii Sak River-1A-1B Drilling Program . i . n ,.. . , I. , ■ . It ii , ee ■ ■ it : II 11 a I 1 1 , r , 1 1 i r , , . .. : I I 1 ,..., , ± ...., __ ...,„ „T , It6r01 N MIT 011/Of VAS 4111 RS - 4Ia - ' L MV ati.-521- " 1 1 . „.., • 2 - f _ .....,.. 4.- -4:- . • =-r.; ' L 7 4.-- . '.- ;al' . :t" ., - 44 , - 7 ' ' ` ' ._._:._1 ' •-:.v . , . . . , I 1 . . 12 - Ii:it411 L I I ' 1 . , . . ill , tr Icr Fos pi .- , I „ i 1 - - - I . TOP DT liATTIM EOM 1 _____ I 1 _,--"--- CAVA ST A 1.110 MANS Akan :Dr 7.4 MIL WAD lei tr.v.isi--"' - - 1 , Nag WRVS ALCM .4G tiff SY a ti-OCT PRAf0FR : MAO sywiam ta CI M. 1 .1.4 WI619 MIN MN WIC VAL IV 011.771161. 1,..21 II It ..... . a 10/ a 8 PK --- %MD OW UR ... SI It r IIMUFRON ! . F--4,- '''' 40, MA Pas . ■ Sti 7 Prepared by Fairweather E&P Services Inc. Brooks Range Petroleum Corporation $chlulNber er Sak River 1B (P3) Pro osal p Report Date: November 24, 2009 Survey I DLS Computation Method: Minimum Curvature / Lubinski Client: Brooks Range Petroleum Vertical Section Azimuth: 35.000° Field: Gwydyr Bay Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure I Slot: Sak River 1 / Sak River 1 TVD Reference Datum: Rotary Table Well: Sak River 1 • S t�d TVD Reference Elevation: 52.00 ft relative to MSL Borehole: Sak River 1B 5' WI 1 Sea Bed I Ground Level Elevation: 19.00 ft relative to MSL UWVAPI #: 500292333602 F68511111 Declination: 22.267° Survey Name 1 Date: Sak River 1B (P3) / November 24, 2009 Total Field Strength: 57680.984 nT Tort I AHD / DDI / ERD ratio: 94.583° / 10371.09 ft / 6.189 / 1.138 Magnetic Dip: 80.986° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: January 10, 2010 Location LatiLong: N 70.42485767, W 148.96798175 Magnetic Declination Model: BGGM 2009 Location Grid N/E Y/X: N 6006061.000 ftUS, E 626647.000 ftUS North Reference: True North • Grid Convergence Angle: +0.97238241° Total Corr Mag North -> True North: +22.267° Grid Scale Factor: 0.99991822 Local Coordinates Referenced To: Well Head I Measured Azimuth Vertical NS EW Mag I Gray Directional Zone Of Zone Of Comments Inclination Sub -Sea TVD TVD DLS Northing Easting Depth True Section True North True North Tool Face Difficulty Exclusion Exclusion (ft) (deq) (deq) (ft) (ft) (ft) (ft) (ft) (deg) (degl100ft) Index (deq) Alert (ftUS) (ftUS) Cry 4/100 6000.00 46.61 51.05 4796.05 4848.05 3104.64 2137.34 2360.33 70.28L 0.00 5.43 38.91 6008237.90 628970.52 6100.00 48.08 45.99 4863.83 4915.83 3176.10 2186.05 2415.37 66.85L 4.00 5.46 39.95 6008287.54 629024.72 6200.00 49.75 41.17 4929.57 4981.57 3250.60 2240.65 2467.26 63.68L 4.00 5.50 41.31 6008343.01 629075.68 6300.00 51.62 36.59 4992.95 5044.95 3327.75 2300.87 2515.76 60.78L 4.00 5.53 42.93 6008404.04 629123.15 6400.00 53.65 32.26 5053.66 5105.66 3407.18 2366.42 2560.64 58.15L 4.00 5.56 44.80 6008470.33 629166.90 6500.00 55.83 28.15 5111.40 5163.40 3488.51 2436.98 2601.66 55.78L 4.00 5.60 46.88 6008541.57 629206.72 6600.00 58.14 24.26 5165.89 5217.89 3571.34 2512.21 2638.64 53.65L 4.00 5.63 49.14 6008617.41 629242.41 End Cry 6672.17 59.88 21.57 5203.05 5255.05 3631.83 2569.19 2662.71 - -- 4.00 5.65 50.88 6008674.79 629265.51 THRZ 12843.97 59.88 21.57 8300.00 8352.00 8824.32 7533.97 4625.10 - -- 0.00 6.12 50.89 6013671.73 631143.21 BHRZ 13103.04 59.88 21.57 8430.00 8482.00 9042.28 7742.37 4707.48 - -- 0.00 6.13 50.89 6013881.49 631222.03 Top Kuparuk 13242.54 59.88 21.57 8500.00 8552.00 9159.65 7854.59 4751.84 - -- 0.00 6.14 50.89 6013994.44 631264.47 Kup C2 13700.90 59.88 21.57 8730.00 8782.00 9545.27 8223.31 4897.58 - -- 0.00 6.16 50.89 6014365.54 631403.9. Kup C1 13900.19 59.88 21.57 8830.00 8882.00 9712.94 8383.62 4960.94 - -- 0.00 6.17 50.89 6014526.89 631464.5 Target LCU 14288.79 59.88 21.57 9025.00 9077.00 10039.89 8696.23 5084.50 - -- 0.00 6.19 50.89 6014841.53 631582.78 LCU 14288.81 59.88 21.57 9025.01 9077.01 10039.90 8696.24 5084.51 - -- 0.00 6.19 50.89 6014841.54 631582.79 TO 14358.54 59.88 21.57 9060.00 9112.00 10098.57 8752.34 5106.68 - -- 0.00 6.19 50.89 6014898.00 631604.00 Survey Error Model: SLB ISCWSA version 24 *** 3 -D 95.00% Confidence 2.7955 sigma Surveying Prop: MD From (ft) MD To (ft) EOU Freq Survey Tool Type Borehole -> Survey 0.00 33.00 Act -Stns SLB_MWD- STD ^ ^1 -Depth Only Sak River 1 -> Sak River 1 33.00 4145.04 Act -Stns SLB_MWD- STD^ ^1 Sak River 1 -> Sak River 1 4145.04 6000.00 1/100.00 SLB_MWD- STD^ ^3 Sak River 1A -> Sak River 1A (P6) 6000.00 14358.54 1/100.00 SLB_MWD- STD^ ^3 Sak River 1B -> Sak River 1B (P3) Legal Description: Northing (Y) fftUS1 Easting (X) fftUS1 Surface : 3329 FSL 1625 FEL S1 T12N R12E UM 6006061.00 626647.00 Target LCU : 1463 FSL 2875 FEL S25 T13N R12E UM 6014841.53 631582.78 TD / BHL : 1519 FSL 2853 FEL S25 T13N R12E UM 6014898.00 631604.00 WellDesign Ver SP 2.1 Bld( users) Sak River 1 \Sak River 1 \Sak River 1B \Sak River 1B (P3) Generated 11/24/2009 4:12 PM Page 1 of 1 • • .."")/•)/\ Brooks Range Petroleum Corporation Schlumberger WELL FIELD STRUCTURE Sak River 1B (P3) I G wydyr Bay I Sak River 1 Magnetic Parameters Surface Location NP027 Alaska Slate Planes, Zone 04, US Feel Miscellaneous Model BGGM 2009 DID 80986° Data January 10, 2010 Let N70 25 29 468 Northing 6006061005U5 Grid Cony 5097238241° Slot Sak River t TVD Ref Rotary Table (5200 fl above MSL) Mag Dec *22 267° FS 57681 0 nT Lon. W148 58 4 734 EasSng 626847 00 flU5 Scale Fact 0 9999162202 Plan Sak River 18 (P3) Snry Date: November 24, 2009 0 1600 3200 4800 6400 8000 9600 0 ........i. 0 1600 ............................................._..............................................................,....,..,...... .....................,.......,. 1600 3200 3200 Cry 4/100 4800 i .................. „ d. e ..,,........................... ,..,,................................. .........,.....,........,....., .,........... „.. 4800 0 0 CD E 11 6400 ...... ,.., °.. ° ... ........................................................ .......... .._.................. 6400 a1 CO U Cl) 0 8000 8000 • ',-.'Riiiiii-uk _. 4 ..._.._.._.._.._.._.._.._.. _.._.. _.._.._.._,._.._. _.._.,_.,_.,_,. _.. _.. _.._ ._.._ _.._.._.._.._.._,..._..- .. _... ._.._.._.._...j.. _.._.._.. _.... .._.._.._ .._.. _.. _. i. _.._.._,._.._.._.._ .._..a.,_.._.._.._.._.._.._.._. _.._.._.._.. _.._.. _.. _.._._.._ _.._.._.._.. _.. _.._._.._.... _. .. _.._.._ _.._.._.. _.._.._.._.._ '�.'_.._. R ver 1B (P3) Sak RIOer 1A (P6) Target LCU 9600 •••• ......................................................................................... ............................... Tn.,,,,,,,., 9600 11200 _ .......................................................................................................................... ............._................. 11200 Sak River 1 0 1600 3200 4800 6400 8000 9600 Vertical Section (ft) Azim = 35 °, Scale = 1(in):1600(ft) Origin = 0 N / -S, 0 E / -V /4"\)°,1"\Y\ • Brooks Range Petroleum Corporation Schlumberger VVELL Sak River 1B (P3) Gwydyr Bay S ak River 1 I FIELD I STRUCTURE Magnetic Parameters Surface Location NAD27 Alaska Slate Planes, Zone 04, US Feet Miscellaneous SSW SG 2009 Dar 50986° Date January 10, 2010 LM Caw 25 29 485 Northing 600606100 RUS Gn0 Ca +097236241° Slot Sak Refer l ND Ref Rotary Table (5200 R above MSL) Mag Dec +22267° FS 576610 nT Lon W148584.734 Easting 626647 00 f1U5 Scale Fact 09999182202 Plan Sak RNerle(PS) Srvy Date November 24, 2009 0 1500 3000 4500 6000 Sak River 1 B (P3) 9000 0,,.,,,.,,. °,,,,,,.,.. 9000 TD TargettCU 7500 l ......,.._ ........... ........................................................... ........_,...........,......... 7500 A A A • z ak River 1A (P6) O 4500 ••• .. °, °°„ .,..,, ° °., ° °... °..,°,,,,, ° ..... .................................... ................. °,.,.......,., ,,..,,,,,,,.,,.,....... ...............,...,. °..,,.,,,. 4500 U V V ak River 1 V End Cry Cry 4/100 / 1500 _ ..................... 1500 0 1500 3000 4500 6000 «< W Scale = 1(in):1500(ft) E »> • • ANTICOLLISION SUMMARY REPORT Client: Brooks Range Petroleum Slot: Sak River 1 Field: Gwydyr Bay Well: Sak River 1 Structure: Sak River 1 Borehole: Sak River 1B Subject Trajectory: Sak River 1B (P3) (DEF PLN) Rpt Date: November 24, 2009 Analysis Method: Normal Plane Depth Interval: Every 100.00ft MD EOU Type: Oriented EOU used. Min Pts: All local minima indicated. ProbColMax: 1:25959 Mag Model: BGGM 2009 Offset Trajectory Sep. Allow Sep. Subject Trajectory Separation Factor Alert Status Ct -Ct (ft) Dev. (ft) Fact. MD (ft) I TVD (ft) _ Alert I Minor I Major Gwydyr Bay ST 2 (DEF SW) PASS 27646.72 27644.211 N /All 23.00 23.00 MinPt -O -SF 1 25885.311 25778.62 372.64 6666.00 5251.95 MinPts 27931.10 27567.58 116.041 10646.72 7249.44 MinPt -O -SF Gwydyr Bay ST 2A (DEF SW) PASS 27646.72 27644.211 N/All 23.00 23.00 MinPt -O -SF 1 25887.861 25781.27 373.03 6670.50 5254.22 MinPts 27525.17 26870.96 63.351 12450.36 8154.49 MinPt -O -SF Gwydyr Bay St A 1 (DEF SW) FAIL_MINOR 10667.21 10664.70 N/A 27.00 27.00 Surface 8617.76 5834.50 4.65 6921.83 5380.33 5.00 Enter Alert 7705.40 -25.79 1.49 8294.38 6069.06 1.50 Enter Minor 7609.17 - 226.92 1.46 9016.20 6431.26 MinPt -CtCt 7633.49 - 260.731 1.451 9716.46 6782.65 MinPts 7911.85 -21.94 1.50 11737.59 7796.83 1.50 Exit Minor 9183.63 1533.24 1.80 14112.76 8988.67 TD Gwydyr Bay St Unit 1 (DEF SW PASS 6411.82 6409.31 N/A 11.10 11.10 MinPt -CtCt 6425.04 6218.20 47.151 598.00 597.93 MinPts 7510.52 7307.221 56.091 1604.54 1544.25 MinPt -O -SF 8470.61 8256.01 1 59.891 1987.20 1870.90 MinPt -O -SF 9870.20 9623.70 1 60.661 2928.02 2612.15 MinPt -O -SF 11011.89 10736.791 60.581 3652.55 3177.41 MinPt -O -SF 11383.97 11099.321 60.511 3886.45 3360.17 MinPt -O -SF 11901.70 11603.241 60.311 4205.69 3606.90 MinPt -O -SF 12164.59 11861.05 60.60 4234.56 3628.95 TD North Shore 1 (DEF SW) PASS 6827.56 6825.05 N/A 3.10 3.10 Surface 6826.99 6822.64 5558.49 387.37 387.37 MinPt -CtCt 6827.02 6822.48 5035.33 423.14 423.13 MinPt -O -ADP 9414.71 9308.71 136.421 2465.17 2244.06 MinPt -O -SF 10801.19 10638.051 100.831 4263.23 3650.53 MinPt -O -SF 11679.28 11469.611 84.541 6006.14 4852.26 MinPt -O -SF 12272.84 12015.701 72.281 6140.46 4942.69 MinPt -O -SF 12571.58 12304.911 71.371 6208.48 4987.04 MinPt -O -SF North Shore 1 (revised Sperry) (DEF SW) PASS 6827.56 6825.05 N/A 7.10 7.10 Surface 6826.99 6822.64 5558.42 387.37 387.37 MinPt -CtCt 6827.02 6822.47 4985.45 426.96 426.96 MinPt -O -ADP 9417.22 9311.36 I 136.631 2462.44 2241.95 MinPt -O -SF 10803.59 10640.651 100.981 4260.11 3648.19 MinPt -O -SF 11680.21 11470.80 I 84.661 6006.45 4852.47 MinPt -O -SF 12324.76 12104.451 84.861 6156.66 4953.35 MinPt -O -SF 12658.47 12429.961 84.001 6209.60 4987.76 MinPt -O -SF W Shore 1 (P1) (PLAN) PASS 21217.88 21215.381 N /All 0.00 0.00 MinPts 21218.05 21215.26 111354.00 118.40 118.40 MinPt -O -ADP 26517.58 26507.10 4982.491 1253.02 1232.50 MinPt -O -SF Version DO 4.0 (doc40x_100 ) SP 2.1 - ANTICOLLISION SUMMARY REPORT Generated 11/24/2009 4:16 PM Page 1 of 2 • • Offset Trajectory Sep. Allow Sep. Subject Trajectory Separation Factor Alert Status Ct -Ct (ft) Dev. (ft) Fact. MD (ft) I TVD (ft) Alert I Minor I Major Sak River 1 (DEF SW) FAIL_MAJOR 0.00 -85.03 -0.05 4200.00 3602.52 MinPts 33.60 -32.10 0.74 4496.72 3815.41 1.00 Exit Major 52.06 -13.06 1.19 4594.99 3882.91 1.50 Exit Minor 211.67 141.81 4.66 5480.30 4491.05 5.00 Exit Alert 4831.19 4601.79 31.92 10611.97 7232.01 TD Sak River 1A (P6) (DEF PLN FAIL_MAJOR 0.00 -59.07 -0.07 6000.00 4848.05 MinPt -CtCt 3.49 - 139.39 0.01 6099.84 4915.72 MinPt -O -ADP 84.76 -65.97 0.83 6481.06 5152.70 1.00 Exit Major 120.59 -30.78 1.19 6568.19 5200.93 1.50 Exit Minor 659.17 456.93 4.93 7629.82 5735.59 5.00 Exit Alert 2781.33 2324.24 9.17 11815.20 7835.77 TD West Gwydyr 1 (DEF SW PASS 19282.11 19279.60 N/A 0.00 0.00 MinPt -CtCt 19282.14 19279.37 106164.99 75.06 75.06 MinPt -O -ADP 19292.14 19286.421 8995.491 534.98 534.96 MinPt -O -SF 19317.21 19310.551 6968.891 639.12 638.97 MinPt -O -SF 19348.89 19341.751 6256.321 727.56 727.07 MinPt -O -SF 20134.661 20100.661 958.71 1310.14 1285.27 MinPt -O -ADP 20137.941 20101.481 889.43 1322.47 1296.55 MinPt -O -ADP 20143.07 20105.17) 853.291 1332.95 1306.09 MinPt -O -SF 20380.73 20319.5811 521.211 1552.40 1498.55 MinPt -O -SF 0 20361.5511 20301.9911 535.24 1629.57 1566.23 MinPts 20761.81 20675.591 371.931 1887.70 1789.09 MinPt -O -SF 20761.33 20674.94 371.22 2012.78 1891.88 MinPt -O -SF Version DO 4.0 (doc40x_100) SP 2.1 - ANTICOLLISION SUMMARY REPORT Generated 11/24/2009 4:16 PM Page 2 of 2 Schlumberger • • TRAVELING C VLINDER PLOT Client: Brooks Range Petroleum No Go Region EOU's based on: Well Sak River 1 Oriented EOU Dimension I Field: Gwydyr Bay Nr Structure: Sak River 1 No Go Region Anticollision rule used Minor Risk - Separation Factor .4„. ' 44 ... Date: h January 10, 2010 •ii , '=" North 350 0 10 340 , 300 20 330 , „„,.......-. 't• - 28 0 --- 1 --- --......,4 30 I 320 ---- 41114040 240 . ..... . .... .....--.... .—.......... 310 ,, „..- . - --x., \-. 50 200 V -m. \''..., ." / ,., 300 / / \<.../:/ / -- 160 i. "'"'"'' ' / 60 ,,,/, ` ,,.. 7 / / ,,,,\ / ' sommirmr '''...... \ i / - , .11110111Mire, ''''''. \ \ x\7\ . . / ; ,./''''‘,.c .' Air oe rilliiiMi hn. q . e . •• 4 ...-' \ \ '' , 280 , i I I i t" 4 # 0 0 dr aL W411014101116, \ \ - \ 1 ) 80 ---0.- ---.4 i i ' #41ffiNfibb -*IllillISWA \ \ I . I i 'H 1! I f lir iiit li WAI 'w' .^. 11111 11 A..\ ' ' ..---i-4,- 90 270 1 ..--. . ,.z.91 ricla f• : k • • ,.., - eV "Av\sv'- — - -teV. : ! f I 1 i 260 - 0,10., ,,, 1 \ . . I 1 , \ \ i Ad , v - "V" - ■1121414, i I I 14# 0 c. \ V . 1 : ,41ili\ . .4" ...‘• 41110 14, tor 25 :„0,71.,.„ .,N . 1 ' w , ife - ; Ili t■TA i "° - ' - lir lis - - ■ ) 1 r ' \ VIC. 18 ***,....... _____,.. ‘. • ,,,,ger JIII \ Alt t illiir -- M - 0 oelPr r \ N... ltilmoirgiw- ........ A \ , ,oi riiiiir A•0 1 , 110e A O 220 210 liglifigialr. /; River 1A (P6) 200 YelliralliO'" 160 190 170 180 Well Ticks Type: MD on Sak River 1B (P3) Calculation Method: Normal Plane Ring Interval: 20.00 ft Azimuth Interval: 10.0 deg Scale: 1 INCH = 100.00 ft Halliburton BAROID Brooks Program Range Mud Pro 9 9 Sak River lB Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Higbie Reviewed by Dave Soquet Customer Approval Natasha Sachivichik Version No: Date: 1.0 November 2, 2009 Sak River 1B V1.0 1 11/02/09 Halliburton BAROID • Brooks Program Range Mud Pro 9 9 Sak River 1 A/1 B Mud Program General Discussion This exploration well will be side tracked from the Sak River #1 well. An 8 -1/2" section will be milled out at 4,200' and drilled to 14,359'. The well will be logged. This section will build to 59° by 4,409 TMD and that angle held to TD. A P &A will occur after logging is complete. A used MOBM will be utilized in the intermediate interval. The mud weight for the intermediate interval of the well will range from 9.1 -9.5 ppg at drill -out and the system will be weighted up to 10.4 ppg prior to drilling the HRZ on 1A. The higher angle in 1B will require a 10.6 ppg at the top of HRZ. Minimizing drilling waste, effective use of recycled mud, hole - stability, and hole - cleaning are the primary objectives of this drilling fluid system. Special Considerations 1. Waste minimization is critical to the success of this well. 2. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.0 ppg at any time ( @1200 sxs barite on location at all times). 3. Due to the remote nature of this location, maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. Well Specifics: Casing Program MD TVD Footage 9 5/8" casing 4200 3551 4200 8-1/2" hole - 1A 12493 9256 8293 8-1/2" hole - 1B 14200 9256 8200 Formation Tops /Casing Program TMD TVD Comments Top Ugnu -4145' -3731' Top West Sak -7725' 6000' Top HRZ 11035' 8255' Weight up 10.4 ppg for 1A / 10.6 ppg for 1B Base HRZ 11531' 8596' Top Kuparuk 11531' 8596' String in Baracarb /Barofibre Base Kuparuk 12399' 9192' Miluveach 12399' 9192' TD 12493' 9256' Sidetrack 1B: (8 -1/2" Hole to 14,359') Mud Type: Enviromul System Mud Properties Density Vis PV YP ES HTHP WPS O/W Initial 9.1 -9.5 55 - 80 15 - 9 - 18 400- <6 220 to *70/30 30 700 260K Sak River 1B V1.0 2 11/02/09 Halliburton BAROI Brooks Program Range Mud Pro 9 g HRZ to TD 10.4 - 55 - 80 20 — 9 —18 400- <6 260 to *70/30 10.6 35 700 280K • Additional mud weight may be required for effective shale stabilization. • The current OBM has a 76/24 OWR. We will mix a lower OWR for the initial dilution fluid to reduce the overall OWR -see below. System Formulation for 68/32 unweighted dilution fluid Product Concentration LVT -200 0.621 bbl EZ MUL NT 4 ppb INVERMUL 4 ppb GELTONE V 6 ppb Lime 5 ppb DURATONE 4 ppb AK -70 2 ppb Water 0.304 bbl CaCl2 31.2 ppb System Formulation for 70/30 Environmul Product Concentration LVT -200 0.596 bbl EZ MUL NT 4 ppb INVERMUL 4 ppb GELTONE V 6 ppb Lime 5 ppb DURATONE 4 ppb AK -70 2 ppb Water 0.279 bbl CaCl2 28.6 ppb BARACARB 25 15 ppb BARACARB 50 15 ppb BAROID As needed for 9.1 -9.5 ppg MW Concerns and Contingencies Production Interval Mud Type: ENVIROMUL System. 1. Mud weight: Maintain the mud weight at 9.1 — 9.5 ppg. Increase to 10.4 ppg just prior to the HRZ. Maximize solids control usage. 2. Rheology: Maintain a YP between 9 and 18. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for logging. Sak River 1B V1.0 3 11/02/09 Halliburton BAROID • • Brooks Program Range Mud Pro 9 9 Optimized mud rheology, flow rate, and rotary speed will be the primary mechanisms for achieving hole cleaning. 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 destabilizing the shales. Operations Summary: Prepare the pit system for the ENVIROMUL as follows: • Clean pits, solids control equipment, all lines and pumps. • Flush all lines with a small volume of oil and discard. • Disconnect all water lines to the pit area and rig floor. • Check all steam fittings in pit room for leaks and repair as needed. Baroid recommends a 400 bbl dilution fluid be added to the used mud system prior to shipping it to the rig. This will reduce the mud weight and low gravity solids. Displace as follows: Prior to milling, displace the well to the ENVIROMUL system designated for this interval of the well. Pump the following spacers ahead of the oil mud: Spacer Formulations: • Pump 50 bbl of >40 YP Barazan D+ spacer. • 50 barrels of the OBM treated with GELTONE to a YP > 40 (app. 4 -6 sx). • Follow with ENVIROMUL mud system. Displacement procedure: • Monitor pump strokes to obtain correct displacement. • Maintain maximum pump rates. • Have the bit on bottom as the oil mud exits the bit. • Reciprocate the drill string by one joint every 15 minutes • Rotate the pipe as rapidly as allowed during the actual displacement. • Do not shut down during the displacement. • Use an E.S. meter at the flow line to determine when the fluid is water free enough to start taking the returns back into the system. An ES of 300 -500 should be sufficient to indicate when displacement is complete. A retort should also be run at this time to confirm fluid quality. • Clean possum belly and any troughs which were used to transport water base fluid. Milling Ensure a minimum yp of 18 -25 is used. Ditch magnets will be required in the troughs /under shakers. A method to capture metal shavings at the shakers will be required. On past milling jobs, we have used Barolift sweeps with excellent results. We recommend 25 bbl sweeps with 0.25 ppb of Barolift while milling and after milling is complete. We recommend to begin milling on a full stand to avoid having to shut the pumps down while milling. If any problems arise, always pump 1 �/2 bottoms up prior to shutting the pumps off. The slower it is milled, the smaller the cuttings size and the easier it is to carry those cuttings out of the well. Maintenance while drilling: 1. Additions of Geltone V will maintain /modify the system rheology to a YP between 9 and 18 (18 -25 for milling) to provide effective hole cleaning while controlling ECD and surge /swab Sak River 1B V1.0 4 11/02/09 Halliburton BAROID Brooks Range Mud Program pressures. Run the rheology checks at 120 °F to TD. RM -63 and Suspentone will also be available. Should any indications of barite sag occur, add 2 ppb of Suspentone 2. Base oil should be used to thin the mud. OMC 42 will also be available to condition (thin) the mud as required; however, caution should be used when using oil mud thinners to avoid over - thinning the system. 3. Drill this interval with a tight DURATONE HT filtration mechanism (< 6 cc /30 min @ 200° F). AK 70 and BARABLOK are also available. These asphaltines should be added (2 ppb) prior to drilling the shale sequences. 4. The electrical stability of the mud should be run in the 400 -700 volt range with EZ MUL NT and INVERMUL NT as the emulsifiers. DRILTREAT will be available as an effective wetting agent for weighting up. 5. Maintain the water hase salinity in the 220 000 — 280 000 mg/I range with sack calcium p Y 9 9 chloride. The WPS can be run at the lower range and then raised to 280,000 for the HRZ. This level of salinity will provide an effective mechanism for good wellbore stabilization. Y p g 6. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 7. The initial oil:water ratio will be @70:30. From there, the system will be maintained with base oil allowing the ratio to drift upwards. This will help reduce the cost of the original fluid and then help control rheology /ECD with a higher ratio in the lower depths of the well. 8. String in 2 -3 ppb of Barofibre and 2 -3 ppb of Baracarb 50 while drilling the West Sak and Kuparuk River sands. This will help strengthen these zones for the high mud weight and reduce the chances of losses, ballooning and /or differential sticking while running the 7" csg. 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. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM—) 400 450 500 80 rpm 138 149 161 100 rpm 166 188 206 1B Production Interval: All mud properties /additions should be run as above EXCEPT the mud weight will need increased to 10.6 ppg prior to entering the HRZ. Risks and Contingencies for the well: Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid in the well. To that end the rheology of the system has been reduced while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping, will both go a long ways toward reducing the risk of lost returns. Sak River 1B V1.0 5 11/02/09 Halliburton BAROID Brooks Program Range Mud Pro 9 9 WelIbore Instability: The possibility for running shale exists, particularly in the HRZ. Should this occur, consider weighting up in increments if 0.4 ppb. AK -70 and /or Barablok additions should be made to plaster the walls. Also, maintaining a tight filtrate and high water -phase salinity (260K — 280K) will help minimize the risk. Stuck pipe: Two forms of stuck pipe are possible. One is from hole pack -off as related to poor hole cleaning, i.e. cuttings bed. Stuck pipe can occur if a cuttings bed forms, or if the wellbore exhibits severe instability. The best cure is to pro - actively prevent the occurrence of either scenario. If they do occur, correct drilling practices must be employed. If pulling up into a tight spot, do not jar up further, but attempt to get below the problem. Backreaming a large cuttings bed is an invitation to packing off and resulting stuck pipe, and backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand and there are indications of differential sticking, there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. Careful judgment must be employed if sensitive shales are exposed as reducing the mud weight may cause instability. Hole Cleaning: Maintaining the programmed flow properties is essential to successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings (PWD increases, drag, torque, partial packing off) should be countered by increasing the circulation time on subsequent connections and prior to trips. Pipe rotation should also be used in conjunction with the pumping of high viscosity sweeps in the pay sands. The returns at surface of all pills should be monitored at the shakers and documented to gauge their effectiveness. When circulating bottoms up prior to POH, it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. Long circulation times should be avoided if the bit/BHA are in one of the mudstone /clay sections. Pipe should be kept moving at all times during this circulation period. High speed pipe rotation is the most critical factor for hole cleaning in the high angle portions of the wellbore. ROP rates above the recommended levels or with no (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: • wiper trips • back reaming • 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 Sak River 1B V1.0 6 11/02/09 Halliburton BAROI Brooks • Program Range Mud Pro g 9 Fluid Volumes: 1A 8.5" Production Interval: Approximately 800 bbl of reconditioned MOBM will be required to fill the hole and pits prior to drilling. Dilution rates for this 8 -1/2" section are anticipated at 0.25 bbl /ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 700 800 1000 Dilution 1375 2075 3320 Re -use to next interval -800 -800 -500 Total 1275 2075 3820 Estimated Drill Solids Disposal Volumes: P10 P50 P90 . Cuttings Volume 610 625 770 Wetting Fluid 310 625 1540 Total 930 1250 2310 1B 8.5" Production Interval: The existing fluid system from the 1A interval will be reconditioned for use on this interval. Some dilution prior to drilling out will likely be required to get the mud into programmed specifications. Dilution rates for this 8.5" section are anticipated at 0.25 bbl /ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial Build 0 200 800 ' Dilution 1500 2500 4000 Total 1500 2700 4800 Estimated Drill Solids Disposal Volumes: P10 P50 . P90 Cuttings Volume 730 782 875 Wetting Volume 350 782 1000 Total 1080 1564 1875 ' Sak River 1B V1.0 7 11/02/09 Halliburton BAROID Brooks Range Mud Program 1A 8'/2" Production Hole — Modeled hole cleaning Operator: Brooks Range Rig: Nabors 16E HO8H 1.493 %Cutting Total vJell: Oak River 1A : Flow Rate = 450 gal /min ROP =100 ft /hr 1,430 % Cutting Elf Cuttings 1 Transport ' Average Hole ' ' ECD Hud Weight =10.4lb /gal Cutting Dia. =.15in Load, % Ell avg % V, ft /min Angle Ib /gal R.1 s@ 100 ft /hr100 rpm / C.5m / .00 i w/o Cut �� H w /Cut 8.835 in 1000 - 1 ° 11 1 1318.0 — — 00 10.728 / 10.728 lb/gal 2000 8.835 in 2642.0 (23830) ft — — 3000 2.24 II I10156 Ib /gal 4300 on ® 8.5 in = _1 00 ` 4409.0 (3755 0J ft — — 2.57 — 5000- vii 10.780 / 10.863 lb /ga 1 11 II ' 6000 -1 4. a 3.34 >;11fi93.0 ft 7000 - I 11111 II 8000- 8.5 in 9000 1.38 8900.0 (6840.0) ft — — 10.854 / 11.030 lb /gal 10000 - 11000 - 4. a 2.563 a 600.0 ft 12000 00 MB ( 8.5 in 8.75 0 2.813 0 200.0 ft 00 l 12493.0 (9308.0) ft I I I -1— i 1 i I P 1 12673.0 10.924/ 11.085 lb/gal 5 1015 20 25 0 50 100 0 207 413 30 60 90 10.40 10.90 11.40 Hole cleaning is good with 450 gpm and 100 rpm at a penetration rate of 150 fph. Hole cleaning becomes poor in the higher angle portion of the wellbore when rotating less than 80 rpm. Flowrates above 450 raise the ECD but not by much (550 gpm raises it .05 ppg). Sak River 1B V1.0 11/02/09 • • Schlumherger C emCAD E* well cementing recommendation for Plug #1 Operator : Brooks Range Petroleum Well : Sak River No.1B Country : USA Field : Gwydyr Bay State : Alaska Prepared for : Mrs. Natasha Sachivichik Location : Sak River #1 B Proposal No. : Draft v1 Service Point : Prudhoe Bay, Alaska Date Prepared : 10 -16 -2008 Business Phone : 907 - 659 -2434 FAX No. : 907 - 659 -2538 Prepared by : Tony Stafford Phone : 907 - 273 -1700 E -Mail : tstafford©slb.com well description Configuration Plug Stage : Single Rig Type : Land Prev.String MD : 4025.0 ft OD : 9 5/8 in Weight : 40.0 lb/ft Drill Pipe MD : 14200.0 ft OD : 2 3/8 in Weight : 6.7 lb/ft Casing/liner Shoe MD 14200.0 ft Mud Line 0.0 ft Total MD 14200.0 ft BHST 180 degF Bit Size 81/2 in Mean OH Diameter 8.500 in Mean Annular Excess 30.0 % ,, Mean OH Equivalent Diameter 9.339 in a Total OH Volume 862.1 bbl (including excess) 0 C 01, 1 ' ATE Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and on estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services Freedom from infringement of patents of Schlumberger or others is not to be inferred. Mark of Schlumberger Page 1 sak river 1B.cfw , 10-16-2009 ; LoadCase 1A PNA ; Version wcs-cem453_10 0 Client Broo Range Petroleum Well Sak River No.1 B I rr String Plug #1 District Prudhoe Bay, Alaska Country USA Loadcase 1A PNA Section 1: flu se Job Obje ctives: Plug 1 - 13,700' 14,200' MD. (Across Kuparuk Sand Original flu Mud 9.60 Ib /gal P� :24.000 cP Tv : 16.00 Ibf /100ft2 Displa Volume 231.8 bbl Drill Pipe Volume 231.8 bbl b Total Volume 300.6 bbl TOC 13765.7 ft Fluid Sequence Name Volume Ann. Len Top Density Rh eology (b (ft) ( ft ) (Ib /g al) M 11 40.0 504.7 13261.0 1 3 .1 0 Pv:32.000 cP Tv:2 Ibf /100ft2 Plug Slurry 34.4 4 13765.7 15.80 P�: 122.000 cP Tv:40.00 Ibf /100ft2 Plug Slurry 7.9 12604.8 15. P�: 122.000 cP Tv:4 Ibf /100ft2 MUDPUSH 11 8.7 12112.4 13.10 P�: 32 . 0 0 0 cP Tv:2 Ibf /100ft2 Mud 209.5 318.3 9.6 Pv:24.000 cP Tv:16.00 Ibf /100ft2 Static Security Checks : Frac 161 psi at 4025.0 ft Pore 230 psi at 4 025 . 0 ft Csg.Pum out 79 ton ft (x 1 °) p si 0 0 7 - Hydrostatic 1 - - Frac - --- Pore o j a - k _ d 0 b = H11 - 114-111 E j : - i Fluid Sequence Static W ell Security Page 2 sak river 16.cfw; 10 -16 -2009; LoadCase to PNA; Version wcs- cem453_10 ID • Client : Brooks Range Petroleum Well : Sak River No.1 B S 11 String : Plug #1 District : Prudhoe Bay, Alaska Country : USA Loadcase : 1A PNA Section 2: pumping schedule Start Job: TIH to TD, Circulate two hole volumes Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 4.0 40.0 10.0 40.0 80 7 -Start Pumping Spacer Plug Slurry 4.0 42.4 10.6 42.4 80 9 -Start Cement Slurry MUDPUSH II 4.0 8.7 2.2 8.7 80 7 -Start Pumping Spacer Mud 4.0 209.5 52.4 209.5 80 19 -Start Displacement Total 01:15 300.6 bbl hr:mn End Job: POOH slowly above plug and reverse out two DP volumes Dynamic Security Checks : Frac 83 psi at 4025.0 ft Pore 230 psi at 4025.0 ft Temperature Results BHCT 154 degF Simulated Max HCT 180 degF Simulated BHCT 141 degF Max HCT Depth 14200.0 ft CT at TOC 144 degF Max HCT Time 00:00:00 hr:mn:sc Static temperatures : At Time (hr:mn) I (hr:mn) Geo. Temp. Top of Cement (degF) (degF) 177 degF Bottom Hole (degF) (degF) 180 degF I P ca — Calc. WHP _- o Cale. Pump Press. S 0 10 20 30 40 50 60 70 80 Time (min) Fluids at 14200 ft — KJ ...._ {acquired Q Out — A:yuir ed 0 h i '- s QOut a) Q In Co Q_ 0 0 10 20 30 40 50 60 70 80 Time (min) Page 3 sak river 18 cfw , 10 -16 -2009 ; LoadCase 1A PNA; Version wcs- cem453_10 0 • Client : Brooks Range Petroleum Well Sak River No.1 B I * String Plug #1 District Prudh Bay, Alaska killer Country USA Loadcase 1 A PNA C @n1 CADE Client : Brooks Range Petroleum Well : Sak Ri`,erNo.1B String • Plug #1 District :Prudhoe Bay, Alaska Country : USA ept Dep =14 ft n - Frac - Fra � ■ O - Fbre - Fbre 1 I 025 ft _ Lo IC) Hydrostatic , I< o Dynamic --- Dynamic ern 9 r � � bk I - l' li a L , O oL '1, 7 ` I� m n ' 2 �� 2) of 2) Cl) a> . c � a c � Qo � O O y r': i i N- I� w �-` 4,...., ;. o N 40 3 n.) N co 0 20 40 60 80 0 2 0 60 80 Time (min) T (mi Total Depth = 14200.0 ft Top of cement = 13765. ft *Mark of Schlumberger III p r Page 4 sak river 16 10 -16 -2009; Loadcase to PNA; Version wcs- ce m4t3_10 • • Client : Brooks Range Petroleum Well : Sak River No.1B ` rler String : Plug #1 District : Prudhoe Bay, Alaska Country : USA Loadcase 1A PNA Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 9.60 lb /gal Rheo. Model : BINGHAM Pv : 24.000 cP At temp. : 80 degF Ty : 16.00 lbf/100ft2 Gel Strength : (lbf/100ft2) MUD Mud Type : WBM Job volume : 209.5 bbl Water Type : Fresh VOLUME FRACTION Solids : 4.0 % Oil : 96.0 % Water : 0.0 % MUDPUSH II DESIGN Fluid No: 2 Density : 13.10 lb /gal Rheo. Model : BINGHAM Pv : 32.000 cP At temp. : 80 degF Ty : 21.00 lbf/100ft2 Gel Strength : (lbf/100ft2) Job volume : 48.7 bbl Plug Slurry DESIGN Fluid No: 3 Density : 15.80 lb /gal Rheo. Model : BINGHAM Pv : 122.000 cP At temp. : 80 degF Ty : 40.00 lbf/100ft2 Gel Strength : (lbf/100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.131 gal /sk Job volume : 42.4 bbl Dry Density : 199.77 Ib /ft3 Yield : 1.16 ft3 /sk Quantity : 204.37 sk Sack Weight : 94 lb Solid Fraction : 41.1 % BASE FLUID Type : Fresh water Density : 8.32 lb /gal Base Fluid : 4.881 gal /sk Additives Code Conc. Function D046 0.200 %BWOC Antifoam D065 0.300 %BWOC Dispersant D167 0.200 %BWOC Fluid loss D177 0.250 gal /sk blend Retarder Page 5 sak river 1B cfw ; 10 -16 -2009 ; LoadCase 14 PNA; Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1B Sell rge1 String : Plug #1 District : Prudhoe Bay, Alaska Country : USA Loadcase : 1A PNA CemCADE Client : Brooks Range Petroleum Well : Sak River No.1B String : Plug #1 District : Prudhoe Bay, Alaska Country : USA Annulus ID : 5.000 in - OD : 9.300 in — Mud MUDPUSHII — Rug Slurry co O O O N co t to N a c • d O cNCO a C • LL d N 0 m 1.6 2.0 2.4 2.8 3.2 3.6 4.0 4.4 4.8 5.2 5.6 6.0 6.4 Flow Rate (bbl /min) ■ Mud Bingham: PV = 24.000 cP Ty = 16.00 Ibf /100ft2 • MUDRJSH II Bingham: PV = 32.000 cP Ty = 21.00 Ibf /100ft2 • Rug Slurry Bingham: PV = 122.000 cP Ty = 40.00 Ibf /100ft2 *Mark of Schlumberger SchIu erp1_ Page 6 sak river 18.cfw: 10-16-2009 LoadCase 1A PNA: Version wcs- cem453_10 Schlumherger C emCAD E* well cementing recommendation for Plug #2 Operator : Brooks Range Petroleum Well : Sak River No.1B Country : USA Field : Gwydyr Bay State : Alaska Prepared for : Mrs. Natasha Sachivichik Location : Sak River MB Proposal No. : Draft v1 Service Point : Prudhoe Bay, Alaska Date Prepared : 10 -16 -2009 Business Phone : 907 - 659 -2434 FAX No. : 907 - 659 -2538 Prepared by : Tony Stafford Phone : 907 - 273 -1700 E -Mail : tstafford@slb.com well description Configuration Plug Stage : Single Rig Type : Land Prev.String MD : 4025.0 ft OD : 9 5/8 in Weight : 40.0 lb/ft Drill Pipe MD : 8200.0 ft OD : 2 7/8 in Weight : 10.4 lb/ft Mud Line 0.0 ft Total MD 12493.0 ft BHST 126 degF Bit Size 81/2 in Mean OH Diameter 8.500 in Mean Annular Excess 30.0 % Mean OH Equivalent Diameter 8.952 in c,0' Total OH Volume 659.2 bbl {including excess) � (/ C7 C ( 'ATE Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment The results depend on input data provided by the Operator and on estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them 0 the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. * Mark of Schlumberger Page 1 sak river 1b.cfw ; 10-16-2009 ; LoadCase Plug 2 (a); Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1B Sdllokrier String : Plug 2 District : Prudhoe Bay, Alaska Country : USA Loadcase : Plug 2 (a) Section 1: fluid sequence Job Objectives: Plug 2 - 13,100' - 13,700' MD. (Across Kuparuk Sands) Original fluid Mud 9.60 lb/gal Pv : 24.000 cP Ty : 16.00 lbf/100ft2 Displacement Volume 125.5 bbl Drill Pipe Volume 125.5 bbl Total Volume 193.2 bbl TOC 7740.4 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) MUDPUSH 11 40.0 514.8 7225.6 13.10 Pv:32.000 cP Ty:21.00 Ibf /100ft2 Plug Slurry 35.7 459.6 7740.4 15.80 Pv:122.000 cP Ty:40.00 Ibf /100ft2 Plug Slurry 7.2 6661.9 15.80 Pv:122.000 cP Ty:40.00 Ibf /100ft2 MUDPUSH 11 7.3 6250.4 13.10 Pv:32.000 cP Ty:21.00 Ibf /100ft2 Mud 103.0 452.6 9.60 Pv:24.000 cP Ty:16.00 Ibf /100ft2 Static Security Checks : Frac 694 psi at 4025.0 ft Pore 231 psi at 4025.0 ft Csg.Pump out 48 ton ft (x 1000) psi 0 0 7.5 1 - Hydrostatic - Frac Pore CD o _ 1-7 I I 11-1-71171 Fluid Sequence Static Well Security Page 2 sak river 1h.cfw; 10 -16 -2009 ; LoadCase Plug 2 (al ; Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1 B Slillikrier String : Plug 2 District : Prudhoe Bay, Alaska Country : USA Loadcase : Plug 2 (a) Section 2: pumping schedule Start Job: Circulate Two Hole Volumes, Safety Meeting, Test Surface Equipment Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 4.0 40.0 10.0 40.0 80 7 -Start Pumping Spacer Plug Slurry 4.0 42.9 10.7 42.9 80 9 -Start Cement Slurry MUDPUSH II 4.0 7.3 1.8 7.3 80 7 -Start Pumping Spacer Mud 4.0 103.0 25.7 103.0 80 19 -Start Displacement Total 00:48 193.2 bbl hr:mn End Job: Bump Plug, Bleed -Off Pressure, Check Floats Dynamic Security Checks : Frac 613 psi at 4025.0 ft Pore 231 psi at 4025.0 ft Temperature Results BHCT 109 degF Simulated Max HCT 126 degF Simulated BHCT 86 degF Max HCT Depth 8200.0 ft CT at TOC 87 degF Max HCT Time 00:00:00 hr:mn:sc Static temperatures : At Time (hr:mn) (hr:mn) Geo. Temp. Top of Cement (degF) (degF) 122 degF Bottom Hole (degF) (degF) 126 degF 0 o -Cale. WHP y ,,::_ Cale. Pump Press .. . r a I Y 0 10 20 30 40 50 60 Time (min) Fluids at 6200 ft — Acquired 4 Out 1 . — Acquired 0 In E - --0Out i m m -1 " - 0 In as I 0 0 10 20 30 40 50 60 Time (min) Page 3 sak river 11) .cfw; 10 -16 -2009: LoadCase Plug 2 (al; Version wcs- cem453_10 • . Client : Brooks Range Petroleum Well : Sak River No.1B Silllikrier String : Plug 2 District Prudhoe Bay, Alaska Country : USA Loadcase : Plug 2 (a) * CemCADE Client : Brooks Range Petroleum Well : Sak River No.1B String : Plug 2 District : Prudhoe Bay, Alaska Country : USA Depth = 4025 ft Depth = 8200 ft - Frac — Frac Pore - Pore hyaroscauc Dynamic Dynamic m ch F � 1, l , t1 i '1 , - t 1 l l N 4 4 t li i $it 1 a t , 'A1 s QI� --, . -bbl'^ "� x :1 r , 2 d ''- �`' ,ate a > E = 7 ,— rn ,— cta P2 a c > c Q o — Q o cv i EL 0 O) - 0) _, 0 ■ o 0 00 00 0 20 40 60 0 20 40 —..— 60 Time (min) Time (min) Total Depth = 12493.0 ft Top of Cement = 7740.4 ft *Mark of Schlumberger ScIb p/1_ Page 4 sak river 1b.cfw; 10 -16 -2009; LoadCase Plug 2 (a); Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1 B S rier String : Plug 2 District : Prudhoe Bay, Alaska Country : USA Loadcase : Plug 2 (a) Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 9.60 lb /gal Rheo. Model : BINGHAM Pv : 24.000 cP At temp. : 80 degF Ty : 16.00 Ibf/100ft2 Gel Strength : (lbf/100ft2) MUD Mud Type : WBM Job volume : 103.0 bbl Water Type : Fresh VOLUME FRACTION Solids : 4.0 % Oil : 96.0 % Water : 0.0 % MUDPUSH II DESIGN Fluid No: 2 Density : 13.10 lb /gal Rheo. Model : BINGHAM Pv : 32.000 cP At temp. : 80 degF Ty : 21.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) Job volume : 47.3 bbl Plug Slurry DESIGN Fluid No: 3 Density : 15.80 lb /gal Rheo. Model : BINGHAM Pv : 122.000 cP At temp. : 80 degF Ty : 40.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.100 gal /sk Job volume : 42.9 bbl Dry Density : 199.77 Ib /ft3 Yield : 1.16 ft3 /sk Quantity : 207.22 sk Sack Weight : 94 lb Solid Fraction : 41.3 % BASE FLUID Type : Fresh water Density : 8.32 lb /gal Base Fluid : 5.050 gal /sk Additives Code Conc. Function D046 0.200 %BWOC Antifoam D065 0.300 %BWOC Dispersant D167 0.350 %BWOC Fluid loss D177 0.050 gal /sk blend Retarder Page 5 sak river 1 b.cfw ; 10 -16 -2009: LoadCase Plug 2 (a) ; Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1B trier � String : Plug 2 District : Prudhoe Bay, Alaska Country : USA Loadcase : Plug 2 (a) CemCADE Client : Brooks Range Petroleum Well : Sak River No.1B String : Plug 2 District : Prudhoe Bay, Alaska Country : USA Annulus ID : 5.000 in - OD : 9.300 in O - Mud MUDPUSHII -- Rug Slurry O in O (7) o d O a � 0 7 `§' > 0 := 0 m .... a c CNJ N I I I I I I 3.9 4.2 4.5 4.8 5.1 5.4 5.7 6.0 6.3 6.6 6.9 7.2 7.5 7.8 8.1 Flow Rate (bbl /min) • Mud Bingham: P/ = 24.000 cP Ty = 16.00 Ibf /100ft2 • MUDPUSH II Bingham: PV = 32.000 cP Ty = 21.00 Ibf/100ft2 • Rug Slurry Bingham: P/ = 122.000 cP Ty = 40.00 Ibf /100ft2 *Mark of Schlumberger S'IIIP1_ Page 6 sak river 1b.cfw; 10 -16 -2009: LoadCase Plug 2 1al Version wcs- cem453_10 • • Schlumberger C emCAD E well cementing recommendation for Plug #3 Operator : Brooks Range Petroleum Well : Sak River No.1B Country : USA Field : Gwydyr Bay State : Alaska Prepared for : Mrs. Natasha Sachivichik Location : Sak River 111B Proposal No. : Draft v1 Service Point : Prudhoe Bay, Alaska Date Prepared : 10 -16 -2009 Business Phone : 907 - 659 -2434 FAX No. : 907 - 659 -2538 Prepared by : Tony Stafford Phone : 907 - 273 -1700 E -Mail : tstafford@slb.com well description Configuration Plug Stage : Single Rig Type : Land Prev.String MD : 4025.0 ft OD : 9 5/8 in Weight : 40.0 lb/ft Drill Pipe MD : 6300.0 ft OD : 2 7/8 in Weight : 10.4 lb /ft Mud Line 0.0 ft Total MD 12493.0 ft BHST 102 degF Bit Size 81/2 in Mean OH Diameter 8.500 in Mean Annular Excess 30.0 % Mean OH Equivalent Diameter 8.775 in sO Total OH Volume 633.5 bbl (including excess) Q { 7 �G -7 (JATE Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and on estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services Freedom from infringement of patents of Schlumberger or others is not to be inferred. Mark of Schlumberger Page 1 sak river 1h.cfw, 10 -16 -2009, LoadCase Plug 3 (a); Version wcs- cem453_10 • • Client Br ooks Range Petroleum Well Sak River No. B rr String Plug #3 District Prudhoe Bay, Alaska Co untry USA Loadcase : Plug 3 (a) Section 1: fluid sequence Job Objectives: Plug 3 - 5,800 6, 300' (Across Sak River 1A sidetrack Original fluid 90.7 bbl Mud 9.60 Ib /gal Pv :24.000 cP point) Tv : 16.00 Ibf /100ft2 Displacement Vo lume 90.7 bbl Drill Pipe Vo lume Total Volum 159 bbl TOC 5837. ft Fluid Sequence Name Volum Ann. Len Top Density Rheology (bbl) (ft) (ft) 13.10 Pv:122.000 cP (Ib /gal) MUDPUSH 11 40.0 504.1 5333.8 Pv:32.000 cP Tv:21.00 Ibf /100ft2 Plug Slurry 36.7 462.2 5837.8 15.80 Ty:40.00 Ibf /100ft2 Plug Slurry 7.0 4738.7 15.80 P�:122.000 cP Ty:40.00 Ibf /100ft2 MU DPUSH II 7.0 4317.3 13.10 P�:32.000 cP Tv:21.00 Ibf /100ft2 Mud 68.4 467.4 9.60 Pv:24.000 cP Tv:16.00 Ibf /100ft2 (x S tatic Security Checks : Frac 694 psi at 4025.0 ft P ore 231 psi at 4025.0 ft Csg. Pump out 37 ton 1000) psi 0 �0 7.5 Hydrostat 1 - Frac ft - pore �[ Cr C I i 0 II 1111 1,1 ill Ali ill Iii si it mai 1101 rig ! 1 111111/1 0 o- 0 III ,t, Fluid Sequence Static Well Security Page 2 sak over 1b cfw ; 10-16-2009 ; LoadCase Plug 3 1a1; Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1B I rie1 String : Plug #3 District : Prudhoe Bay, Alaska �j Country : USA Loadcase : Plug 3 (a) Section 2: pumping schedule Start Job: Circulate Two Hole Volumes, Safety Meeting, Test Surface Equipment Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 4.0 40.0 10.0 40.0 80 7 -Start Pumping Spacer Plug Slurry 4.0 43.7 10.9 43.7 80 9 -Start Cement Slurry MUDPUSH II 4.0 7.0 1.7 7.0 80 7 -Start Pumping Spacer Mud 4.0 68.4 17.1 68.4 80 19 -Start Displacement Total 00:39 159.0 bbl hr:mn End Job: Bump Plug, Bleed -Off Pressure, Check Floats Dynamic Security Checks : Frac 614 psi at 4025.0 ft Pore 231 psi at 4025.0 ft Temperature Results BHCT 89 degF Simulated Max HCT 102 degF Simulated BHCT 70 degF Max HCT Depth 6300.0 ft CT at TOC 70 degF Max HCT Time 00:00:00 hr:mn:sc Static temperatures : At Time (hr:mn) (hr:mn) Geo. Temp. Top of Cement (degF) (degF) 97 degF Bottom Hole (degF) (degF) 102 degF o - -- --- — - -- ------- o —Cale. WHP o r h r Calc. Pump Press. r To S ' -- --.. L , I I i " i t 0 5 10 15 20 25 30 35 40 46 Time (min) Fluids at 6300 ft —Acquired 0 Out - -- - Acquired 0 In u - -0Out , Q In co w ..+ , 0 5 10 15 20 25 30 36 40 46 Time (min) Page 3 sak river 1b.cfw; 10 -16 -2009; LoadCase Plug 3 (a) Version wcs- cem453_10 0 Client Brooks Range Petroleum Well Sak River No.1B Client I' 1 • String : Pl #3 District P rudhoe Bay, Alaska Country USA Loadca P lug 3 (a CemCADE : Brooks Range Petroleum Well : Sak River No.1B String : Plug #3 District : Prudhoe Bay, Alaska * Country : USA Depth = 4025 ft _ __ _ Dep 6300 ft = 6 Frac - Pore — Pore Frac r Dynamic Dynanuc C') 1 I ` , � � lglt a i � t i i[ i � r� ��1�� It � �� "' — i ,.... N ( - f Ts �� / k ,-, - i ' "_ 3r I � iI'k 1� r u to r } I� A Ii w d k s ( t' 7 ,.1,--- Q. , ...., a i l r C Q > ip iri M 0 o N `,- op 0) 0 10 20 30 40 50 0 10 20 30 40 50 Time (min) Time (min) t = Total Depth = 12493.0 ft Top of Cemen5837.8 ft *Mark of Schlumberger SIII er'P• Page 4 sak river 1b.cfw; 10 -16 -2009: LoadCase Plug 3 lal Version wcs- cem453_10 • Client : Brooks Range Petroleum Well : Sak River No.1B I rier String : Plug #3 District : Prudhoe Bay, Alaska Country : USA Loadcase : Plug 3 (a) Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 9.60 lb /gal Rheo. Model : BINGHAM Pv : 24.000 cP At temp. : 80 degF Ty : 16.00 lbf/100ft2 Gel Strength : (lbf/100ft2) MUD Mud Type : WBM Job volume : 68.4 bbl Water Type : Fresh VOLUME FRACTION Solids : 4.0 Oil : 96.0 % Water : 0.0 % MUDPUSH II DESIGN Fluid No: 2 Density : 13.10 lb /gal Rheo. Model : BINGHAM Pv : 32.000 cP At temp. : 80 degF Ty : 21.00 lbf/100ft2 Gel Strength : (lbf/100ft2) Job volume : 47.0 bbl Plug Slurry DESIGN Fluid No: 3 Density : 15.80 lb /gal Rheo. Model : BINGHAM Pv : 122.000 cP At temp. : 80 degF Ty : 40.00 lbf/100ft2 Gel Strength : (lbf/100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.096 gal /sk Job volume : 43.7 bbl Dry Density : 199.77 lb/ft3 Yield : 1.16 ft3 /sk Quantity : 211.30 sk Sack Weight : 94 lb Solid Fraction : 41.3 % BASE FLUID Type : Fresh water Density : 8.32 lb /gal Base Fluid : 5.076 gal /sk Additives Code Conc. Function D046 0.200 %BWOC Antifoam D065 0.300 %BWOC Dispersant D167 0.350 %BWOC Fluid loss D177 0.020 gal /sk blend Retarder Page 5 sak river 1b.cfw;10 -16 -2009; LoadCase Plug 3 1al, Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1B S rge1 String : Plug #3 District : Prudhoe Bay, Alaska t Country : USA Loadcase : Plug 3 (a) CemCADE Client : Brooks Range Petroleum Well : Sak River No.1B String : Plug #3 District : Prudhoe Bay, Alaska Country : USA Annulus ID : 5.000 in - OD : 9.300 in O - Mud MUDPUSH II kt) -- Rug Slurry LC) O "2 o 1. 1 Lo CL E � w y v a V7 > p lL E. N , m O N CV 3.9 4.2 4.5 4.8 5.1 5.4 5.7 6.0 6.3 6.6 6.9 7.2 7.5 7.8 8.1 Flow Rate (bbl/min) ■ Mud Bingham: P/ = 24.000 cP Ty = 16.00 lbf/100ft2 • MUDPUSH II Bingham: P/ = 32.000 cP Ty = 21.00 Ibf /100ft2 • Plug Slurry Bingham: P/ = 122.000 cP Ty = 40.00 lbf/100ft2 *Mark of Schlumberger S Iindirpr Page 6 sak river 1b cfw ;1 D -16 -2009: LoadCase Plug 3 (a) ; Version wcs- cem453_10 • • Schlumherger C e m CA D E well cementing recommendation for Plug #4 Operator : Brooks Range Petroleum Well : Sak River No.1B Country : USA Field : Gwydyr Bay State : Alaska Prepared for : Mrs. Natasha Sachivichik Location : Sak River #1 B Proposal No. : Draft v1 Service Point : Prudhoe Bay, Alaska Date Prepared : 10 -16 -2009 Business Phone : 907 - 659 -2434 FAX No. : 907 - 659 -2538 Prepared by : Tony Stafford Phone : 907 - 273 -1700 E -Mail : tstafford@slb.com well description Configuration Plug Stage : Single Rig Type : Land Prev.String MD : 4025.0 ft OD : 9 5/8 in Weight : 40.0 lb/ft Drill Pipe MD : 4500.0 ft OD : 2 7/8 in Weight : 10.4 lb /ft • Mud Line 0.0 ft Total MD 12493.0 ft BHST 78 degF Bit Size 81/2 in Mean OH Diameter 8.500 in Mean Annular Excess 30.0 Mean OH Equivalent Diameter 8.563 in S‘Gl Total OH Volume 603.2 bbl (including excess) ‹§(/ T./ C 9 4 UATE Disclaimer Notice This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and on estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services Freedom from infringement of patents of Schlumberger or others is not to be inferred. Mark of Schlumberger Page 1 sak river 1b.cfw; 10 -16 -2009; LoadCase Plug 4 (a); Version wcs- cem453_10 • Client : Brooks Range Petroleum Well : Sak River No.1B r er String : Plug #4 District : Prudhoe Bay, Alaska Country : USA Loadcase : Plug 4 (a) Section 1: fluid sequence Job Objectives: Plug 4 - 4,000' - 4,500' (Across 9 - 5/8" casing shoe and open - hole below the shoe) Original fluid Mud 9.60 lb/gal Pv : 24.000 cP Ty : 16.00 Ibf /100ft2 Displacement Volume 59.8 bbl Drill Pipe Volume 59.8 bbl Total Volume 127.9 bbl TOC 4039.7 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) MUDPUSH 11 40.0 587.2 3452.5 13.10 Pv:32.000 cP Ty:21.00 Ibf /100ft2 Plug Slurry 37.2 460.3 4039.7 15.80 Pv:122.000 cP Ty:40.00 Ibf /100ft2 Plug Slurry 6.9 2976.4 15.80 Pv:122.000 cP Ty:40.00 Ibf /100ft2 MUDPUSH 11 8.6 2493.9 13.10 Pv:32.000 cP Ty:21.00 Ibf /100ft2 Mud 35.3 507.1 9.60 Pv:24.000 cP Ty:16.00 Ibf /100ft2 Static Security Checks : Frac 574 psi at 4500.0 ft Pore 312 psi at 4025.0 ft Csg.Pump out 26 ton (x 1000) psi ft 0 0 7.5 - Hydrostatic - Frac -Pore 1 1 1 I co Ems o ' • I 5. Fluid Sequence Static Well Security Page 2 sak river lb cfw ; 10 -16 -2009 ; LoadCase Plug 4 (a) Version wcs- cem453_10 • • Si kl Client : Brooks Range Petroleum Well : Sak River No.1B ( �Qr String Plug #4 District Prudhoe Bay, Alaska Loadcase : Plug 4 (a) UU1 Country USA Section 2: pu schedule Start Job: Circulate Two Hole Volumes, Safety Meeting, Test Surface Equipment Name Flow Rate Volume Stage Pumping Time Schedule Cum.Vol Inj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 4.0 40.0 10.0 40.0 80 7 -Start Pumping Spacer MUDPUSH II Plug Slurry 4.0 44.1 11.0 44.1 80 art Cmnt Sry 4.0 8.6 2.1 8.6 80 7 -Start 9 -St Pumping e Spacer lur Mud 4.0 35.3 8.8 35.3 80 19 -Start Displacement Total 00:31 127.9 bbl hr:mn End Job: Bump Plug, Bleed - Off Pressure, Check Floats Dynamic Security Checks : Frac 524 psi at 4500.0 ft Pore 231 psi at 4025.0 ft Temperature Results BHCT 70 degF Simulated M ax HCT 78 degF Simulated BHCT 60 degF Max HCT Depth 4500.0 ft CT at TOC 59 degF Max HCT Time 00:00 hr:mn:sc Static temperatures : At Time ( hr (hr:mn) Geo. :00 Temp. Top of Cement (degF) (degF) 74 degF Bottom Hole (degF) (degF) 78 degF 0 o Cale. WHP t r Calc. Pump Press _ ' r 0 10 15 2 25 30 35 Time (min) F at 4500 ft Acquired 4 ntei — Acquired 0 In s - 0 Out Oln asv a T 0 I sm r . o 1 M 0 � 15 20 25 30 35 Time (min) Page 3 sak river 1b.cfw; 10 -16 -2009; LoadCase Plug 4 (a); Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1B S iler String : Plug #4 District : Prudhoe Bay, Alaska Country : USA Loadcase : Plug 4 (a) Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 9.60 lb /gal Rheo. Model : BINGHAM P : 24.000 cP At temp. : 80 degF Ty : 16.00 lbf/100ft2 Gel Strength : (lbf/100ft2) MUD Mud Type : WBM Job volume : 35.3 bbl Water Type : Fresh VOLUME FRACTION Solids : 4.0 % Oil : 96.0 % Water : 0.0 % MUDPUSH II DESIGN Fluid No: 2 Density : 13.10 lb /gal Rheo. Model : BINGHAM Pv : 32.000 cP At temp. : 80 degF Ty : 21.00 lbf/100ft2 Gel Strength : (lbf/100ft2) Job volume : 48.6 bbl Plug Slurry DESIGN Fluid No: 3 Density : 15.80 lb /gal Rheo. Model : BINGHAM Pv : 122.000 cP At temp. : 80 degF Ty : 40.00 lbf/100ft2 Gel Strength : (lbf/100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.094 gal /sk Job volume : 44.1 bbl Dry Density : 199.77 lb/ft3 Yield : 1.16 ft3 /sk Quantity : 213.29 sk Sack Weight : 94 lb Solid Fraction : 41.3 % BASE FLUID Type : Fresh water Density : 8.32 lb /gal Base Fluid : 5.094 gal /sk Additives Code Conc. Function D046 0.200 %BWOC Antifoam D065 0.300 %BWOC Dispersant D167 0.350 %BWOC Fluid loss Page 4 sak river 16.cfw:10 -16 -2009; LoadCase Plug 4 (a); Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1 B I rer String : Plug #4 District : Prudhoe Bay, Alaska Country : USA Loadcase : Plug 4 (a) CemCADE Client : Brooks Range Petroleum Well : Sak River No.1B String : Plug #4 District : Prudhoe Bay, Alaska Country : USA Annulus ID : 5.000 in - OD : 9.300 in co T _ - MUDPUSH II Plug Slurry O a v co M o Q_ O (� a v N - O N 3 !I ill 3.9 4.2 4.5 4.8 5.1 5.4 5.7 6.0 6.3 6.6 6.9 7.2 7.5 7.8 8.1 Flow Rate (bbVmin) • Mud Bingham: R/ = 24.000 cP Ty = 16.00 Ibf /100ft2 • MUDPUSH II Bingham PV = 32.000 cP Ty = 21.00 Ibf /100ft2 • Rug Slurry Bingham: R/ = 122.000 cP Ty = 40.00 Ibf /100f12 *Mark of Schlumberger S'IerI• Page 5 sak river 1b.cfw; 10 -16 -2009; LoadCase Plug 4 (a): Version wcs- cem453_10 • Scblumber C e m CA D E well cementing recommendation for Surface Plug Operator : Brooks Range Petroleum Well : Sak River No.1B Country : USA Field : Gwydyr Bay State : Alaska Prepared for : Mrs. Natasha Sachivichik Location : Sak River #1B Proposal No. : Draft v1 Service Point : Prudhoe Bay, Alaska Date Prepared : 10 -16 -2009 Business Phone : 907 - 659 -2434 FAX No. : 907 -659 -2538 Prepared by : Tony Stafford Phone : 907 - 273 -1700 E -Mail : tstafford@slb.com well description Configuration Plug Stage : Single Rig Type : Land Prev.String MD : 4025.0 ft OD : 9 5/8 in Weight : 40.0 lb /ft Drill Pipe MD : 250.0 ft OD : 2 7/8 in Weight : 10.4 lb /ft Mud Line 0.0 ft Total MD 12493.0 ft BHST 26 degF Bit Size 81 /2 in Mean OH Diameter 8.500 in Mean Annular Excess 0.0 % Mean OH Equivalent Diameter 8.500 in Total OH Volume 594.3 bbl (including excess) 47/ C7 t o. L 9 � UATE Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and on estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. Mark of Schlumberger Page 1 sak river 1b.cfw; 10 -16 -2009; LoadCase Surface Plug lal, Version wcs- cem453_10 • 0 Client Brooks Range Petroleum Well Sak r No.1 B �� String Surface Plug District Prudhoe Bay, Alaska Rive Cou ntry USA Loadca Sur Plug (a) Section 1: flu s equence Job Objectives: Surface Plug - ML - 250' Origina flu id Mud 9.60 Ib /gal Pv :24.000 c Tv : 16.0 Ibf /10 Displacement Vo lume 1.1 bbl Drill Pipe Volume 1. 1 bb Total Volume 23.1 bb TOC 0.O ft Flu id Sequ Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (Ib /ga CW8 5.0 0.0 8.24 v iscosity: 5.000 cP AS1 16.9 250.0 15.70 Pv:190. cP Tv:45.00 Ibf /100ft2 AS1 1.1 0.0 15.70 P v : 190.000 cP Tv:45. Ibf /100ft2 CW8 0.0 0.0 8.24 viscos cP Mu 0.0 0.0 9.60 Pv:24.000 cP Ty:16. Ibf /100ft2 Static Security Chec : Frac 615 psi at 4025.0 ft Pore 310 psi at 4025.0 ft Csg.Pump out 1 ton F (X . pad) p si 0 0 7.5 - Hydrostatic - Frac - - Pore p i r f 1..1-4--"i �1 E O i O O Fluid Sequence Sta VVeII Secur Page 2 sak river 1b.c fw; 10- 164009; LoadCase Surfac Plug iai; Version wcs 1101 • • Client : Brooks Range Petroleum Well Sak River No.1B 1 e1 String Surface Plug District : Prudhoe Bay, Alaska Country : USA Loadcase : Surface Plug (a) Section 2: pumping schedule Start Job: Circulate Two Hole Volumes, Safety Meeting, Test Surface Equipment Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) CW8 3.0 5.0 1.7 5.0 80 AS1 3.0 18.1 6.0 18.1 80 CW8 3.0 0.0 0.0 0.0 80 Mud 3.0 0.0 0.0 0.0 80 Total 00:07 23.1 bbl hr:mn End Job: Bump Plug, Bleed - Off Pressure, Check Floats Dynamic Security Checks : Frac 606 psi at 4025.0 ft Pore 226 psi at 4025.0 ft Temperature Results BHCT 31 degF Simulated Max HCT 80 degF Simulated BHCT 80 degF Max HCT Depth 250.0 ft CT at TOC 71 degF Max HCT Time 00:07:41 hr:mn:sc Static temperatures : At Time (hr:mn) 00:00 hr:mn Geo. Temp. Top of Cement (degF) 71 degF 25 degF Bottom Hole (degF) 80 degF 26 degF o- o —Cato. WHP _ co �— — Cale. Pump Press. _�- - T T i i . , o i i 0 1 2 3 4 5 6 7 8 9 Time (min) Fluids at 250 ft . Acquired red 0 Out � _o 10 Out O In aa 1 I 0 0 1 2 3 4 5 6 7 8 9 Time (min) Page 3 sak river 1b.cfw; 10 -16 -2009; LoadCase Surface Plug (al; Version wcs- cem453_10 • • Client : Brooks Range Petroleum Well : Sak River No.1 B I prier String : Surface Plug District : Prudhoe Bay, Alaska Country : USA Loadcase : Surface Plug (a) Section 3: fluid description CW8 DESIGN Fluid No: 5 Density : 8.24 lb/gal Rheo. Model : NEWTONIAN At temp. : 80 degF Viscosity : 5.000 cP Gel Strength : (lbf/100ft2) Job volume : 5.0 bbl AS1 (ArcticSET 1) DESIGN Fluid No: 7 Density : 15.70 lb/gal Rheo. Model : BINGHAM Pv : 190.000 cP At temp. : (degF) Ty : 45.00 lbf/100ft2 Gel Strength : (lbf/100ft2) DESIGN BLEND SLURRY Name : AS1 Mix Fluid : 3.548 gal /sk Job volume : 18.1 bbl Dry Density : 174.58 Ib /ft3 Yield : 0.93 ft3 /sk Quantity : 108.82 sk Sack Weight : 80 lb Solid Fraction : 49.1 % BASE FLUID Type : Fresh water Density : 8.32 lb/gal Base Fluid : 3.548 gal /sk Page 4 sak river 1b cfw ; 10 -16 -2009, LoadCase Surface Plug (a), Version wcs- cem453_10 • • />///\</\\ Brooks Range Petroleum a subsidiary of A VCG, LLC 510 L Street, Suite 601 * Anchorage, AK 99501 * Phone (907) 339 -9965 * Fax (907) 339 -9961 December 19, 2009 R�� Mr. Dan Seamount, Chair '��„? n. Alaska Oil and Gas Conservation Commission Alaska O , ' �,�� 333 West 7 Ave., Suite 100 Anchorage LO l�Mission Anchorage, Alaska 99501 Ae RE: Application for Permit to Drill: Sak River #1B Dear Mr. Seamount, Brooks Range Petroleum hereby applies for a Permit to Drill a sidetrack oil exploration well Sak River #1B (SR -1B) from an ice pad on the shore of Gwydyr Bay north of Prudhoe Bay Field's S- Pad on the North Slope. Brooks Range plans to use Nabors Rig #16 -E to drill this well. SR -1B drilling will be conditioned on oil discovery in the Sak River -1A to be previously drilled. The SR -1A application for a permit to drill was submitted earlier. The SR -1A will be evaluated and later plugged back to 6000' MD. Brooks Range plans to drill the Sak River #1B as an 8 -1/2" hole from 6,000' MD to the Kuparuk sandstone to 14,358'MD/9,112'TVD. The objectives of this operation are to locate the OWC and to evaluate the reservoir extent and properties. After drilling this section, e -line open -hole logging may be conducted to evaluate the thickness of the reservoir and rock properties. After the open -hole logging program is completed, the Sak River-1B hole will be plugged back with cement extending at least 100' into the 9 -5/8" casing. A bridge plug will be set at 250' with cement on top of the bridge plug inside the 9 -5/8" casing. The wellhead will be left in place to allow drilling future sidetrack wells from this location. Please find attached information as required by 20 AAC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Form 10 -401 Application for Permit to Drill 2) A plat showing the surface location of the well 3) Proposed general drilling program 1 1 4) Drilling Time versus Depth Plot 5) Current Wellbore Diagram 6) Proposed Wellbore Diagram 7) Pressure Calculations, Drilling Area Risks and Waste Disposal 8) Diagrams and Descriptions of the BOP Equipment to be Used 9) Directional Drilling Program 10) Drilling Fluid Program 11) Cementing Program for plug back operations 12) Brooks Range does not anticipate the presence of H2S in the formation to be encountered in this well. However, H2S monitoring equipment will be functioning on the rig at all times during drilling and completion operations. 13) The following are Brooks Range's designated contacts for reporting responsibilities to the Commission: 1) Completion Report Natasha Sachivichik, Drilling Engineer (20 AAC 25.070) (907) 258 -3446 2) Geologic Data and Logs Doug Hastings, VP - Exploration (20 AAC 25.071) (907) 865 -5802 If you have any questions or require additional information, please contact me at (907) 865 -5840 or Natasha Sachivichik at (907) 258 -3446. Sincerely, BROOKS RANGE PETROLEUM CORPORATION P• t ,v 7 3 Doug Has ings Vice President - Exploration enclosures cc: Natasha Sachivichik - Fairweather 2 Alaska Department of Naturaoesources Land Administration System. Page 1 of 7 N Alaska Mapper Land Records /Status Plats Recorder's Search State Cabins Natural Resources [— Al aska DNR Case Summary File Type: ADL File Number: 390431 Printable Case File Summary See Township, Range, Section and Acreage? New search * Yes ) No LAS Menu Case Abstract 1 Case Detail 1 Land Abstract AIL File: ADL 390431 MaP Search for Status Plat Updates As of 12/22/2009 Customer: 000038497 AVCG, LLC LAND DEPARTMENT 510 L STREET, SUITE 601 ANCHORAGE AK 99501 Case Type: 784 OIL & GAS LEASE COMP DNR Unit: 780 OIL AND GAS File Location: DOG DIV OIL AND GAS Case Status: 35 ISSUED Status Date: 04/27/2004 Total Acres: 2560.000 Date Initiated.: 10/29/2003 Office of Primary Responsibility: DOG DIV OIL AND GAS Last Transaction Date: 09/11/2009 Case Subtype: BS BEAUFORT SEA Last Transaction: UNITNI UNITIZED Meridian: U Township: 013N Range: 012E Section: 25 Section Acres: 640 Search Plats Meridian: U Township: 013N Range: 012E Section: 26 Section Acres: 640 Meridian: U Township: 013N Range: 012E Section: 35 Section Acres: 640 Meridian: U Township: 013N Range: 012E Section: 36 Section Acres: 640 Legal Description 03 -12 -2004 * * ** *FINAL LEGAL DESCRIPTION * * * ** TRACT BSA2003 -320 T. 13 N., R. 12 E., UMIAT MERIDIAN, ALASKA. SECTION 25, PROTRACTED, ALL, 640.00 ACRES; SECTION 26, PROTRACTED, ALL, 640.00 ACRES; SECTION 35, UNSURVEYED, ALL TIDE AND SUBMERGED LANDS, 545.66 ACRES; SECTION 36, PROTRACTED, ALL, 640.00 ACRES; T. 13 N., R. 12 E., TRACT B, UMIAT MERIDIAN, ALASKA. SECTION 35, UNSURVEYED, ALL, 94.34 ACRES; http: / /dnr.alaska.gov /projects /las /Case Summary.cfm ?FileType= ADL &FileNumber = 390... 12/22/2009 Alaska Department of Naturaosources Land Administration System • Page 1 of NAlaska Mapper Land Records /Status Plats Recorder's Search State Cabins Natural Resources Alaska DNR Case Summary File Type: ADL File Number: 390429 Printable Case File Summary See Township, Range, Section and Acreage? New Search 0 Yes O No LAS Menu I Case Abstract 1 Case Detail l Land Abstract File: ADL 390429 _ !'__ Search for Status Plat Updates As of 12/22/2009 Customer: 000038497 AVCG, LLC LAND DEPARTMENT 510 L STREET, SUITE 601 ANCHORAGE AK 99501 Case Type: 784 OIL & GAS LEASE COMP DNR Unit: 780 OIL AND GAS File Location: DOG DIV OIL AND GAS Case Status: 35 ISSUED Status Date: 04/27/2004 Total Acres: 2560.000 Date Initiated: 10/29/2003 Office of Primary Responsibility: DOG DIV OIL AND GAS Last Transaction Date: 09/11/2009 Case Subtype: BS BEAUFORT SEA Last Transaction: UNITNI UNITIZED Meridian: U Township: 012N Range: 012E Section: 01 Section Acres: 640 Search Plats Meridian: U Township: 012N Range: 012E Section: 02 Section Acres: 640 Meridian: U Township: 012N Range: 012E Section: 11 Section Acres: 640 Meridian: U Township: 012N Range: 012E Section: 12 Section Acres: 640 Legal Description 03 -12 -2004 * * ** *FINAL LEGAL DESCRIPTION * * * ** TRACT BSA2003 -313 T. 12 N., R. 12 E., UMIAT MERIDIAN, ALASKA. SECTION 1, UNSURVEYED, ALL TIDE AND SUBMERGED LANDS, 30.19 ACRES; T. 12 N., R. 12 E., TRACT B, UMIAT MERIDIAN, ALASKA. SECTION 1, UNSURVEYED, ALL INCLUDING THE BEDS OF ALL MEANDERABLE WATERBODIES, 609.81 ACRES; SECTION 2, UNSURVEYED, ALL INCLUDING THE BEDS OF ALL MEANDERABLE WATERBODIES, 640.00 ACRES; http: / /dnr.alaska.gov /proj ects/ las /Case_Summary.cfrn ?FileType= ADL &FileNumber = 390... 12/22/2009 • TRANSMITTAL LETTER CHECKLIST WELL NAME �AA ✓c e PTD# ‹?0916 6 Development Service Exploratory Stratigraphic Test Non - Conventional Well I / FIELD: ALO.earaes/ POOL: d Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER 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(f), 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. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed 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: 1/11/2008 ,, , 1 , r Field & Pool Well Name: SAK RIVER 1B ,. ,. : ' Program EXP Well bore seg r PTD #: 2091660 Company BROOKS RANGE PETROLEUM —_- _ Initial Class /Type EXP / PEND GeoArea 890 Unit 00000 On /Off Shore On — Annular Disposal ❑ Administration 1 Permit fee attached NA 2 Lease number appropriate Yes '3 Unique well name and number Yes 4 Well located in a defined pool No Exploration well, Kuparuk undefined. 5 Well located proper distance from drilling unit boundary Yes - 6 Well located proper distance from other wells Yes 7 Sufficient acreage available in drilling unit Yes 2560 acres. 8 If deviated, is wellbore plat included Yes !t/cN/ 9 Operator only affected party Yes i LPKfj it(2. (74 10 Operator has appropriate bond in force Yes Blanket Bond # LPMM21 6 Sri w/ S'faccD, rM niz Lill 46'7'2/79 /r Qli/i jJ' ea!d , 11 Permit can be issued without conservation order Yes Appr Date 12 Permit can be issued without administrative approval Yes 113 Can permit be approved before 15 -day wait Yes ACS 12/23/2009 • 14 Well located within area and strata authorized by Injection Order # (put 10# in comments) (For NA 15 All wells within 1/4 mile area of review identified (For service well only) NA 16 Pre - produced injector: duration of pre - production less than 3 months (For service well only) NA 17 Nonconven. gas conforms to AS31.05.030(j.1.A),(j.2.A-D) NA 18 Conductor string provided NA Conductor set in SR -1 Engineering 19 Surface casing protects all known USDWs NA Suface casing set in SR -1 20 CMT vol adequate to circulate on conductor & surf csg NA Surface casing cemented back to GL in SR -1 i 21 CMT vol adequate to tie -in long string to surf csg NA No production casing run or planned for ST 22 CMT will cover all known productive horizons No no caisng planned for drilled hole. Log only . 23 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate tankage or reserve pit Yes Rig has steel pits. All waste to approved disposal wells. 25 If a re- drill, has a 10 -403 for abandonment been approved No No Sundry generated for Sak River 1A.. Need it before drilling 1B. Desision will be made after drilling SR -1A 26 Adequate wellbore separation proposed Yes Proximity analysis performed. Wellpath diverges from SR - 1A 27 If diverter required, does it meet regulations NA Wellhead in place. BOP installed. A ppr Date 1 28 Drilling fluid program schematic & equip list adequate Yes Max formation pressure = 4264 psi ( 9.0 ppg EMW) Will drill with 9.1 -9.5 ppg mud PE do they meet re GLS 12/28/2009 1 29 BOPEs, s, y regulation Yes 9 30 BOPE press rating appropriate; test to (put psig in comments) Yes MASP = 3262 psi Will test BOP to 4000 psi • 31 Choke manifold complies w /API RP -53 (May 84) Yes 32 Work will occur without operation shutdown Yes 33 Is presence of H2S gas probable Yes H2S possible .. Rig has sensors and alarms. 34 Mechanical condition of wells within AOR verified (For service well only) NA 135 Permit can be issued w/o hydrogen sulfide measures No Exploation well into reservoir that could contain H2S. Geology 1 36 Data presented on potential overpressure zones NA Appr Date 37 Seismic analysis of shallow gas zones NA ACS 12/23/2009 38 Seabed condition survey (if off - shore) NA 39 Contact name /phone for weekly progress reports [exploratory only] Yes N. Sachivichik - 575 -7156 Geologic Engineering Public Commissioner: Date: Con r: Date Commissioner Date / 2 -2_9_01