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209-011
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. .=:, © - 01 1 Well History File Identifier Organizing (done) ❑ Two -sided IIIIIIIHII!I ❑ Rescan Needed 1 11111 I R AN DIGITAL DATA OVERSIZED (Scannable) Color 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:: BY: Maria Date: g • I /s/ 01P Project Proofing 1 1 11111 BY: Maria) Date: S/0, 0a /s/ rn P Scanning Preparation 1 x 30 = 3 0 + a-3 = TOTAL PAGES 5 Q (Count does not include cover sheet) v i i J� BY: Date: V I I /s/ V r Production Scanning I 111111 1111 Stage 1 Page Count from Scanned File: Szi-' (Count does include cov r sheet) Pa•e Count Matches Number in Scanning Preparation: YES NO BY: MP Date: Ti a I p /s/ n4 f 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. I I II IIII ReScanned 1 11111111 11111 BY: Maria Date: /s/ Comments about this file: Quality Checked III IIIIII III IIII III 12/22/2011 Well History File Cover Page.doc DATA SUBMITTAL COMPLIANCE REPORT 8/7/2012 Permit to Drill 2090110 Well Name /No. PANTHERA 21 -6 -9XX Operator UNION OIL CO OF CALIFORNIA API No. 50- 223 - 20025 -00-00 MD TVD Completion Date Completion Status Current Status CANC UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey No 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 Cores and /or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 2/5/2009. ADDITIONAL INFORMATION Well Cored? Y / N Daily History Received? Y / N Chips Received? Y / N Formation Tops Y / N Analysis Y / N Received? Comments: C Off, ■A. C Compliance Reviewed By: Date: ) — d p Page 1 of 1 - 1/13/2010 &u McMains, Stephen E (DOA) d,0 0 11 From: Kanyer, Christopher V [Chris.Kanyer @chevron.com] Sent: Wednesday, January 13, 2010 1:10 PM To: McMains, Stephen E (DOA); Aubert, Winton G (DOA) Cc: Brandenburg, Tim C; Bonnett, Nigel (Nigel.Bonnett); Tyler, Steve L Subject: Cancellation of open sundries /permits After reviewing the following open permits to drill (form 10 -401) /sundries (form 10 -403) for Union Oil Company of Califomia, it has been determined these open AOGCC permits /sundries should be cancelled: PTD Sundry API Well Name /Number 209 -011 N/A 50- 233 - 20025 -00 Panthera 21-6 -9 208 -207 N/A 50- 287 - 20026 -00 Stegodon 24-6 -8 209 -058 N/A 50- 733 - 20586 -00 Trading Bay Unit M -08 197 -067 308 -252 50- 733 - 20043 -02 A -08RD2 201 -117 308 -269 50- 733 - 20254 -01 Trading Bay Unit K -18 195 -083 308 -268 50- 733 - 20097 -04 Trading Bay Unit K -26RD 208 -184 309 -198 50- 283 - 20130 -00 Ivan River Unit (IRU) 11 -06 Please let me know if you have any questions. Thanks, Chris Kanyer •• Technical Assistant Wellbore Maintenance Team Office: (907) 263 -7831 CeII: (907) 250 -0374 Chevron North America Exploration and Production Midcontinent/Alaska SBU 3800 Centerpoint Dr, Suite 100 Anchorage, AK 99503 1/13/2010 • • Page 1 of 2 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Tuesday, August 04, 2009 8:47 AM To: 'Quick, Mike [ASRC]'; Hammons, Darrell Cc: Pecci, Chris L; Brandenburg, Tim C; Regg, James B (DOA); DOA AOGCC Prudhoe Bay Subject: RE: UOCC White Hills Photos Mike, Darrell, et al, Thanks for providing the photos. Jim and I have examined them. It will be necessary to fill the depressions at the Muskoxen site to promote drainage and prevent ponding. It appears that the end of well work at the Panthera and Bluebuck sites achieved those objectives. Call or message with any questions. Tom Maunder, PE AOGCC a'® From: Quick, Mike [ASRC] [mailto:MQuick @chevron.com] Sent: Tuesday, August 04, 2009 8:22 AM To: Maunder, Thomas E (DOA); Regg, James B (DOA) Cc: Hammons, Darrell; Pecci, Chris L; Brandenburg, Tim C Subject: UOCC White Hills Photos Tom /Jim — UOCC has started the summer clean -up work from the White Hills exploration project. Attached are photos of the 3 well sites from the 2009 drilling season. The two cellar areas at the Muskoxen 36 -7 -8 (PTD # 208 -188) have subsided 12 " -18" from ground level. Please see the attached photos. UOCC had your inspector scheduled Friday (8/7) for a site visit, but we would like to coordinate with your office to start remediation, if needed, prior to the planned site visit. Please let me know when it is convenient for you to discuss a plan forward, so we can bring this to a resolution that meets the AOGCC's satisfaction. Regards, Mike Mike Quick Project Manager / Drilling Engineer MidContinent /Alaska SBU Chevron North America Exploration and Production 3800 Centerpoint Drive, Suite 100 Anchorage, Alaska 99503 Direct 907 - 263 -7900 Fax 1- 866 - 480 -5398 mguick@chevron.com 8/4/2009 Page 2 of 2 From: Bush, Dean A [Peak] Sent: Sunday, August 02, 2009 6:59 AM To: Hammons, Darrell; Quick, Mike [ASRC] Cc: Henderson, Jennifer Subject: WH Pics Pictures of Cellar locations. As you can see we will need to fill in the cellars at Muskoxen! 8/4/2009 S Probable Spud of Panthera 21 Page 1 of 1 Maunder, Thomas E (DOA) From: Quay, Walter [ASRC) [WQuay @chevron.com] Sent: Wednesday, February 04, 2009 2:41 PM To: Maunder, Thomas E (DOA) Cc: Bonnett, Nigel (Nigel.Bonnett); Kanyer, Christopher V Subject: Probable Spud of Panthera 21 -6 -9 Tom, As per our conversation, the probable spud for Panthera is not early February as the submitted application, but early March. Panthera will follow not precede Bluebuck as was our schedule when the permit was submitted. Walter Quay WQuay @chevron.com Office: 907 - 263 -7812 Cell: 907 - 230 -3961 2/4/2009 • Q nsE SARAH PALIN, GOVERNOR ALASKA OIL AND GAS 333 W 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 Tim Brandenburg FAX (907) 276 -7542 Drilling Manager Unocal 3800 Centerpoint Dr., Ste 100 Anchroage AK 99503 Re: Exploration, Panthera 21 -6 -9 Unocal Permit No: 209 -011 Surface Location: 179' FSL, 1388' FEL, SEC. 21, T6N, R9E, UM Bottomhole Location: 179' FSL, 1388' FEL, SEC. 21, T6N, R9E, UM Dear Mr. Brandenburg: Enclosed is the approved application for permit to drill the above referenced exploration well. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. 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). incerely, Daniel T. Seamount, Jr. Chair DATED this / day of February, 2009 cc: Department of Fish & Game, Habitat Section w/o end. Department of Environmental Conservation w/o encl. - 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION �+--k ` � � I c � E - PERMIT TO DRILL 20 AAC 25.005 Alas"; ..., .:x (:,a ; i Ui `;. 'R . ' _.:,., la. Type of Work: lb. Current Well Class: Exploratory 5 . Development Oil ❑ 1c. Specify if well is proposed for: Anchorage Drill 0 • Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas ❑ Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ❑ Multiple Zone ❑ Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11. Well Name and Number. Union Oil Company of California Bond No. 086S103515406BCM Panthera 21 -6 -9 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3800 Centerpoint Drive, Suite 100, Anchorage, AK 99503 MD: 5000 ' TVD: - 5000 Exploration 4a. Location of Well (Governmental Section): 7. Property D ignation: Surface: 179' FSL, 1388 FEL, Sec 21, T6N, R9E, Umiat Meridian - ADL 3 4 3 , jocc>5 /• L r •4", Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 179' FSL, 1388 FEL, Sec 21, T6N, R9E, Umiat Meridian ADNR LAS 26542 6- Feb-09 Total Depth: 9. Acres in Property: 14. Distance to Nearest 179' FSL, 1388 FEL, Sec 21, T6N, R9E, Umiat Meridian 5760 Property: 21000 • 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation Ka 37c An 64. 15. Distance to Nearest Well Surface: x- 513,835 - y- 5,795,946 - Zone- ASP4 (Height above GL): if AP f 354 feet AOC- Within Pool: None 16. Deviated wells: Kickoff depth: feet 17. Maximum Anticipated Pressures in psi (see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 2165 • Surface: 1665 • 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Augered 16 65 N -80 Weld 180 0 0 201 201 As Required to Surface 12 -1/4 9 -5/8 40 L -80 BTC 1100 0 0 • 1100 . 1100 Lead: 126 bbls(168 sx) of 10.7 ppg(4.15ft/sx) PF "L" (250% excess) Tail: 85 bbls (494 sx) of PF "C" @ 15.6 ppg (0.96 ft/sx) (250% Excess) 8 -3/4" 7 26 L -80 BTC 3250 1000 1000 . 2300 • 2300 59 bbls (212 sx) of G W/ Spherelite @ 13.25 ppg (1.55 ft/sx) (40% excess) 6 -1/8" 3 -1/2" 9.6 L -80 IBT -M 4100 900 900 • 5000 ■ 5000 176 bbls ( 322 sx) of G W/ Econlite at 11.2 ppg and 3.08 cf /sk (40% Exess) 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Structural , Surface Intermediate Production Liner Perforation Depth MD (ft): 'Perforation Depth TVD (ft): 20. Attachments: Filing Fee ❑ BOP Sketch 5 Drilling Program El Time v. Depth Plot El Shallow Hazard Analysis❑✓ Property Plat 0 Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 5 20 AAC 25.050 requirements❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Walter Quay 263 - 7812 Printed Name ft Tim Brandenburg /// Title Drilling Manager __ Signature ~•� `T - 1 Phone 263 -7657 Date 23- Jan -09 " Commission Use Only Permit to Drill API Number: .���/� p,�, Permit App oval See cover letter for other Num 50- 7-2. 3 - Z�ZS''on Date: a. • • oq requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in si Other ``�� q _ �( Samples req'd: Ye '' No ❑ Mud log req'd: 12 Nn r7 . r x�, /(�( \.AGt - Qe �' �S H measures: Yea No❑ Directional svy req'd: Ds /1/ - �J�o • \y" \ \y\e_ vv' J \a'l h© \(L oac¢ DONi\C_DskgSC U t 3 c v \cc7a •Q ©r k APPROVED BY THE COMMISSION .... 2 f D ATE: r , COMMISSIONER ` , %b / • 37.49 / /217 Form 10-401 Revised 12/2005 ORIGINAL Submit in Duplicate Chevron %110 Timothy C Brandenburg Union Oil Company of California Drilling Manager 3800 Centerpoint Dr. Suite 100 Anchorage, AK 99519 -6247 Fax 907 263 7884 January sio er R Commis E Y r „ Commissioner ,.., Alaska Oil & Gas Conservation Commission 333 W. 7 Avenue JAN 2 6 Anchorage, Alaska 99501 Alaska Cal & Gas Cons. Comr'rlissior, Re: Application for Permit to Drill Panthera 21 -6 -9 Exploration Well Anchorage Dear Commissioner: Enclosed for approval is a Permit to Drill (form 10 -401) for Union Oil Company Of California to drill the Alaska North Slope White Hills Exploration well, Panthera 21 -6 -9. Subject to AOGCC approval, it is intended to drill Panthera 21 -6 -9 with an anticipated spud date is February 6, 2009. A variance from requirements of 20 AAC 25.035, to utilize a diverter vent line diameter of 12" is requested. This is smaller than the planned surface hole of 12 -1/4 ". A similar request was approved for Muskoxen 36 -7 -8, Smilodon 9 -3 -9, Mastodon 6 -3 -9 and Panthera 28 -6 -9 wells with Nabors 106E rig. The AOGCC is requested to treat as confidential all information included in the Application for Permit to Drill as information in these documents is drawn from research and data proprietary to Union Oil Of California a wholly owned subsidiary of Chevron Corporation. If additional information is required, please contact either myself or Mr.Walter Quay at 263 -7812. Pertinent information attached to this application includes the following: 1. Form 10 -401 Application for Permit to Drill — 2 Copies 2. Well Program 3. Wellbore Schematic 4. Drilling Fluids Program 5. Directional Program 6. As Staked Location Plat 7. Days Vs Depth Drilling Plot 8. MASP Calculation & Casing Design 9. Diverter, BOP and Choke Manifold Schematics 10. Shallow Hazard Analysis Sincerely, � f Timothy C. Brandenburg / Drilling Manager Cc: Well File Union Oil Company of California / A Chevron Company http: / /www.chevron.com Chevron i I W Panthera 21 -6 -9 Well Plan Summary Surface Location: X = 513,835'• Y = 5,795,946 • As- Staked 179' FSL, 1388' FEL, Sec. 21, T6N, R9E UM - Target Location: X = 513,835' Y = 5,795,946 Schrader Bluff A 179' FSL, 1388' FEL, Sec. 21, T6N, R9E UM Target Location: X = 513,835' Y = 5,795,946 Schrader Bluff B 179' FSL, 1388' FEL, Sec. 21, T6N, R9E UM Target Location: X = 513,835' Y = 5,795,946 Schrader Bluff C 179' FSL, 1388' FEL, Sec. 21, T6N, R9E UM Bottom Hole Location: X = 513,835' Y = 5,795,946 179' FSL, 1388' FEL, Sec. 21, T6N, R9E UM The well approaches within 21,000' of the nearest UOCC White Hills lease line. Estimated Start Date: 02/06/2009 1 Operating days to complete: 136 I MD: I 5000' • I TVD: 1 5000' • ( I Elev. GL: 1354' • I RKB: 121' • Formation Markers: Formation Tops MD - RKB TVD - RKB TVD -GL Comments Base Permafrost 1100 1100 1079 Top Prince Creek A 1169 1190 1190 Top Lower Ugnu 2400 2400 2379 Top Schrader Bluff A 2789 2810 2810 Top Schrader Bluff B 3590 3590 3569 Top Schrader Bluff C 4230 4230 4209 Top Coleville 4535 4535 4514 • Est. TD 5000 5000 4979 Casing Program: Hole Csg/ Wt/Ft Grade Conn Length Top Btm Size Tbg O.D. MD/TVD MD/TVD rkb Augered 16" 65# L -80 Welded 180' GL 201' 12 -1/4" 9 -5/8" 40.0# L -80 BTC 1100 GL .1100/1100 8 -3/4" 7" 26# L -80 BTC 1300 1000/1000 - 2300/2300 6-1/8" 3-1/2" 9.3# L -80 IBT-M 4100 900/900 • 5000'/5000' 1/24/09 3 of 44 • I Mud Program: 12 -1/4" Surface Hole (0- 1100'): Fresh Water Mud Initial Value Final Value Density (ppg) 8.5 9.0 -9.4* Funnel Viscosity 100 -200 70 -150 (seconds) Yield Point 30 -40 20 -30 (cP) Plastic Viscostiy (lb /100 10 -30 12 - 25 sf) 10 second Gel Strength 10 -15 10 -15 (lb /100 sf) 10 minute Gel Strength 20 -40 20-40 (lb /100 sf) pH 9 -9.5 9 -9.5 API Filtrate(cc) _ Unrestricted <12 8 -3/4" Intermediate Hole (1100' — 2300'): Fresh Water Mud — 6% KCL/PHPA /Clayseal with Calcium Carbonate Initial Value Final Value Density (ppg) 9.1 -9.2 9.5 Max Funnel Viscosity 45 -70 45 -70 (seconds) Yield Point (cP) 15 -25 15 -25 Plastic Viscostiy (lb /100 10 -22 12 -24 sf) 10 second gel 4 -8 4 -8 10 minute gel 6 -13 6 -14 pH 9 -9.5 9 -9.5 API filtrate <3.5 <3.5 Solids % 0 <6 6 -1/8" Production Hole (2300' — 5000'): Fresh Water Mud — 6% KCL/PHPA /Clayseal with Calcium Carbonate Initial Value Final Value Density (ppg) 9.3 9.5 Max • Funnel Viscosity 45 -70 45 -70 (seconds) Yield Point (cP) 15 -25 15 -25 Plastic Viscostiy (lb /100 10 -22 12 -24 sf) 10 second gel 4 -8 4 -8 10 minute gel 6 -13 6 -14 pH 9 -9.5 9 -9.5 API filtrate <3.5 <3.5 Solids % 0 <6 1/24/09 4 of 44 • • Hydraulics: Surface Hole: 12 -1/4" _ Interval GPM Mfg Bit Pump PSI ECD ppg- Nozzles TFA emw (in 0' -1100' >600 Hughes MX -L1X 1800 9.7 13/15/15/15 0.65 Intermediate Hole: 8-3/4" Interval GPM Mfg Bit Pump PSI ECD ppg Nozzles emw 1100' — 2300' 500 Hughes MX -1 2400 9.6 4 X 14s Production Hole: 6 -1/8" Interval GPM Mfg Bit Pump PSI ECD ppg- Nozzles • emw 2300 -5000 250 Hycalog DTX -613 2400 9.6 3x9, 3x10 Cement Calculations: Casing Size I 9-5/8" Surface Basis: Lead: To Surface from top of tail with 250% excess in the permafrost. Tail: 400' of open hole volume + 250% excess in the permafrost + 85' shoe track volume. Total Cement Volume: Lead 126 bbl / 714 fe / 168 sks of Permafrost Type L at 10.7 ppg and 4.15 cf /sk. Tail 84.5 bbl / 474 ft / 494 sks of Permafrost Type 'C' at 15.6 ppg and 0.96 cf /sk. Intermediate Liner: Casing Size I 7" Liner Basis: 85' Shoe Track, 40% excess volume in OH from shoe to surface shoe, 100' of liner lap inside surface casing + 100' of excess above the liner top (DP Out) Total Cement Volume: 59 bbls / 329 if/ 212 sks of Premium Cement with 30 % Spherelite at 13.25 ppg and 1.55 cf /sk Production /Abandonment Liner: Casing Size I 3 Liner Basis: Lead: 85' Shoe Track, 40% excess volume in OH from shoe to surface shoe, 150' of liner lap inside surface casing + 100' of excess above the liner top (DP Out) Total Cement Volume: 176 bbls / 988 ft' 322 sks of Premium Cement with Econlite at 11.2 ppg and 3.08 cf /sk • Logging Program: Logging While Drilling Hole Size Services Run 1 0 -Surf. Csg LWD: GR/Res /Sonic /Directional • Run 2 Surf. Csg - Int LWD: GR/Res /EcoScope /Sonic /Directional • Run 3 Int - TD LWD: Quad- Combo /Directional Mud Logging Services Mudlogger required from surface to TD Company Geologist required from Surface to TD 0 - Surf. Csg Bagged samples of cuttings every 30 feet, with 10 ft samples caught from sandstones and other potential reservoirs from surface to TD; three washed and dried cuts, one unwashed cut. Check all sandstones with drilloffs for oil fluorescence and cut. Isotube gas sample from mudlogger over all zones of interest. Surf. Csg — Int Bagged samples of cuttings every 30 feet, with 10 ft samples caught from sandstones and other potential reservoirs from surface to TD; three washed and dried cuts, one unwashed cut. Check all sandstones with drilloffs for oil fluorescence and cut. Isotube gas sample from mudlogger over all zones of interest. Int - TD Bagged samples of cuttings every 30 feet, with 10 ft samples caught from sandstones and other potential reservoirs from surface to TD; three washed and dried cuts, one unwashed cut. Check all sandstones with drilloffs for oil fluorescence and cut. Isotube gas sample from mudlogcer over all zones of interest. Coring_ Hole Size Services Int. csg -TD Rotary sidewall cores( Open Hole Logging Services Hole Size Intermediate Hole Section* (Optional Based Upon Hole Conditions) Run 1 8 -3/4 GR/CN /ZDL /XMAC Run 2 MREX Run 3 RCOR Run 4 _ WL RCI(Pressure & Temperature Measurements) Run 5 DP Conveyed RCI(Sample & Pressure Measurements) Production Hole Section Run 1 6 -1/8 GR/CN /ZDL /XMAC Run 2 MREX Run 3 RCOR Run 4 WL RCI(Pressure & Temperature Measurements) Run 5 DP Conveyed RCI(Sample & Pressure Measurements) Run 6 Checkshot Integrity Testing: Test Point Depth Test Type EMW Surface Casing Shoe At least 20 feet but not more than FIT to 12.0 Estimated 12.0 ppg EMW. 50 feet of new formation Test Point Depth Test Type EMW Intermediate Casing At least 20 feet but not more than LOT Estimated 13:0 ppg EMW. Shoe 50 feet of new formation Take the test to Leak Off 1/24/09 6 of 44 • I Well Control: Surface hole will be drilled with a diverter. The MASP is 1665 psi. (See Attached) The intermediate /production hole well control equipment (of at least 3000 psi working pressure) consisting of will be equipped with pipe rams, blind rams, and an annular preventer will be installed and is capable of handling the MASP pressure. Based upon the planned casing test of 2500 psi for casing integrity considerations, the BOP equipment will be tested to 2500 psi. Disposal: • Cuttings Handling: Cuttings generated from drilling operations hauled to an approved disposal facility. • Fluid Handling: All Mud and Used drilling and completion fluids and other Class II wastes hauled to an approved disposal facility. Wastes Handling See the Comprehensive Waste Management plan for all details on Waste Handling. Excess/Used Liquid Mud & Excess Cement Returns Used liquid mud will be stored in a heated tank farm on the first drill site for the 2009, then hauled overland to a disposal site in GPB. Cement returns and wash will be citrate treated, then stored in the used mud tank farm. This cement should be blended with used mud to dilute the cement concentration. Drill cuttings Drill cuttings will be processed by the rig solids control equipment to remove as much liquid from them as possible. The "dry" cuttings will be stored in an ice containment pit on the pad. NO LIQUIDS ARE ALLOWED IN THE CONTAINMENT PIT. The drill cuttings with be stored in the containment pit until: 1) they are backhauled to Deadhorse via Cat 730 ejector trucks with tundra tires to an approved disposal area. 1/24/09 7 of 44 • Summary of Drilling Operations Pre -Rig Work: 1. Set and cement 16" conductor 2. Install cellar Rig Operations: 1. Nipple Up the 13 -5/8" BOP diverter spool and riser in diverter mode. Function test diverter system. Provide the AOGCC at least 48 hours notice of each BOPE function pressure test so that a commission representative can witness the test Ory ���,e v��> SS �1.'�1'v‘ a IL 2. MU 12 -1/4" drilling assembly. Drill surface hole to approximately 1100' (to the base of the permafrost). Drift the drillpipe to 2.4" min. ID for the stab -in dart. 3. Run and cement the 9 -5/8 ", 40.0# surface casing back to surface. A Stab -in cementing system will be utilized. 4. RU the BOPE in BOP Mode and test to 250/2500 psi. Provide the AOGCC at least 48 hours notice of each BOPE function pressure test so that a commission representative can witness the test p r vwCk�vew�rtsS 5. MU 8 -3/4" drilling assembly and RIH to float collar. Test the 9 -5/8" casing to 2500 psi for 30 minutes. Drill out shoe joints and new formation greater than 20' and less than 50'. Perform the FIT. . 7. Drill ahead to —2300 (above the lower Ugnu) 8. Run and cement the 7 ", 26# liner. 9. MU 6 -1/8" drilling assembly and RIH to float collar. Test the 7" casing to 2500 psi for 30 minutes. 10. Drill out shoe joints and new formation greater than 20' and less than 50'. Perform the Leak Off Test. 11. Drill ahead to planned TD 12. Circulate and condition hole and perform wiper trip to surface casing shoe. POOH and stand back BHA. 13. RU Open Hole Wireline and run Logging Suite. 14. Run and cement the 3 -1/2" P&A Liner. 15. TOOH and LD drill pipe. 16. Rig down and move off 1/24/09 8 of 44 • 41 Panthera 21 -6 -9 DIR / LWD FORM DEPTH- RKB(21') Est. El. GL 354' HOLE CASING MUD INFO MWD MD TVD TVD 21 SIZE SPECS Cement Info INFO 0' 0' 354' _ 16" 65 lb/ft, L -80 16" Conducto 180' 180' 174' ' N/A N/A _WD /GR /RES /Soni. E Lead Slurry 126 Bbls, 168 sx Liner Top Packer [ Surface Csq 10.7 ppg Top of Liner Hanger --.....__` 9 -5/8" 4.15 ft3 /sx 9 -5/8° X 7" X 3 -1/2" 900' 900' -546' \ , 40.0 Ibs/ft Type L PF Wellbore Stability 3 -1/2" Float Collar 930' fi I l.. tf . L -80, BTC-M Lost Circulation Tail Slurry 31 F if(- flt ' 84 Bbls, 494 sx Top of Liner Hanger 1,000' 1,000' -646' #``E l ID. = 8.835" 15.6 ppg Hole Cleaning 9 -5/8" X 7" " / Int. Yield 5750 psi 0.96 ft3/sx Casing Sections • ''.'..,,,.,:::''11', !rl.' • i' Collapse 3090 psi Type C PF Casing Wear E 9 -5/8" Casin • 1,100' 1,100' 746' `t i if4 £ 12-1/4" 45 a F Water Based Mud J D /GR /RES /EcoSo. Base PF 1,100' 1,100' - 746' i ti" ' + Sonic E - " 1 Int. Liner Prince Creek A 1,190' 1,190' - 836 €F iftf ,lf , 7" j 26Ibs /ft sly a r1 )_ €€ 3 L -80, BTC -M 59 Bbls, 212 sx €E k t il: 1' �Itl f c ID. = 6.276 13.25 ppg ' Int. Yield 7240 psi 1.55 ft3lsx `� 3 '. II: 3 ) Collapse 5410 psi G W /Spherelite 3 ak FF Hill fell 3 ) I 333 ' 9.0 -10.0 ppg IG 7" Liner 2,300' 2,300' -1,946' # I ", z i (E tlFf ' if 8 -3/4" 65.F KCI /PHPA JD /GR /RES /EcoSo. Ift , V, 'i'i ' + Sonic i1 $I(f P &A Liner sl urry Wellbore Stability Lower Ugnu 2,400' 2,400' - 2,046' f 3 -1/2" 176 Bbls Lost Circulation 322 sx 9.3 #/ft 11,2 ppg Hole Cleaning Ift ;tt €' L - 80, IBT 3.08ft3 /sx .. Torque & Drag ID. = 2.992" G W /Econolite [0 Schrader Bluff A 2,810' 2,810' - 2,456' Int. Yield 10,160 psi Casing Sections IO iii: ' Collapse 10,530 psi tit 1t1I? Schrader Bluff B 3,590' 3,590' - 3,236' tit 4Il':i Al' Schrader Bluff C 4,230' 4,230' - 3,876' I`i . ill 1l� RCI Sampling Coleville 4,535' 4,535' - 4,181' 4 i T tr 9.0 -10.0 ppg 3 -1/2" Liner 5,000' 5,000' - 4,646' r f_ = ° 6 -1/8" 85.F KCI /PHPA 1/24/09 9 of 44 • REV DATE BY CK APP DESCRIPTION REV DATE BY APP DESCRIPTION PANTHERA 21 -6 -9 DRILL PAD N rl.' t 22 ,- LOCATED WITHIN PROTRACTED SEC. 21, T 6 N, R 9 E, rP 21 925 UMIAT MERIDIAN. i r� ) 179' F.S.L, 1388' F.E.L. • "-'' ASP ZONE 4 1 .. NAD 27 COORDINATES W LAT = N 69' 51' 13.2232" - [ ----- •-- ---� ; LONG = W 149 53' 25.1855" "---\ PANTHERA Y = 5,795,946.07' • �2 Mx 0 X= 513,835.45' • C3--.,,, 1 -6-9 w _ C (3) NOTES: �; `� 1. COORDINATES SHOWN ARE NAD 27 ALASKA 28 ,. 27 27 T 6 N STATE PLANE ZONE 4. 2. GEOGRAPHIC COORDINATES ARE NAD 27. VICINITY MAP 3. ALL DISTANCES ARE GROUND. 1" = APPROX. 1/2 MILE 4. PAD IS ROTATED 20' WEST FROM NORTH. USGS QUAD: 5. VERTICAL DATUM IS GPS DERIVED BASED ON SAGAVANIRKTOK D -5 GEOID 06. 600 N10 / / Imm *N y �h 5 �" S 0 b3 ` s d ` \ I o \ \ 41- I PANTHERA ti ) 21 -6 -9 0 . o 600 LEGEND S 1 -► DENOTES SPILL TRAJECTORY STAKED CONDUCTOR LOCATION LOUNSBURY PANTHERA DRILL PAD /1\ & ASSOCIATES, INC. SCALE: , ENGINEERS PLANNERS 1 " = 200' - 14D 907 -272 -5451 CHEVRON PANTHERA 21 -6 -9 DRILL PAD AS- STAKED DRAWING UNION OIL OF CAUFORNIA WITH TOPO AND SPILL TRAJECTORY CADD F' 4 Q. DRAWING NO: SHEET: 19 of 4 V: PANTHERA 2 4 SEPTEMBER 2008 06- 025 / 2008 _SURVEY /DRAWINGS /PANTHERA. DWG 1 OF 0 Halliburton BAROID Chevron Mud Program Chevron WI White Hills Panthera 21 -6 -9 Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Soquet Reviewed by Dave Higbie Customer Approval Walter Quay Version No: Date: 3.0 January 20, 2009 Panthera v3.0 I I'20/09 1/24/09 11 of 44 • Halliburton BAROID Chevron Mud Program Panthera 21 -6 -9 General Discussion This exploration well will be drilled from an ice pad south of Kuparuk. Due to the remote location, waste management is critical on this well. A 12 -1/4" surface hole will be drilled vertically to a depth of -1,100' (base of permafrost) where 9 -5/8" casing will be set and cemented. An 8 -3/4" intermediate hole will then be drilled to a depth of -2,300' where a 7" liner will be set and cemented. A 6 -1/8" production hole will then be drilled to TD at 5000' where a 3 -1/2" liner will be cemented. Spud the well with a conventional gel -based spud mud system. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity and flowrates for efficient hole cleaning. A mud chiller will be utilized to minimize thawing of the permafrost and hole washout. A 6% KCI / PHPA / Clayseal system with calcium carbonate will be used for the intermediate and production intervals. The calcium carbonate will provide bridging and additional filtrate control in an attempt to reduce filtrate invasion into the wellbore. A whole mud dilution will likely be required prior to drilling the production interval to bring the fluid properties within program specification. Special Considerations: i. While gas hydrates are unlikely, maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment in the event gas hydrates are noted. Contact the Technical Representative prior to any additions of Driltreat. ii. Lime and zinc carbonate should be on location for H2S contingency ( @1 pallet No SuIf and 2 pallets iv lime). iii. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time ( @1500 sx barite on location at all times). iv. 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. v. Sticky clays have been problematic in the area. Maintain Dril -N- Slide /Condet at a total concentration of -1% to minimize screen blinding and the agglomeration of the clays. vi. Reduce the potential for hole erosion /destabilization, hold the jet velocity below 200 fps while achieving pump rates to deliver AV's around the drill pipe in the 150 -200 fpm range. vii. Some shale instability has been noted on offset wells (maintain tight filtrate control /mud weight). viii. Obtaining good logs and fluid samples are a key component of this drilling program. Maintaining low filtrate and using the inhibitive mud system will limit fluid invasion and help drill a gauge hole. ix. Maintain an adequate supply of STEELSEAL should losses be observed. String 3 -5 sx/hr immediately after noting losses. Again, this may also improve the post well fluid samples by limiting drilling fluid invasion. Well Specifics: Casing Program MD TVD Footage 12-1/4" hole (9 -5/8" casing) 1,100' 1,100' 1,100 8 -3/4" hole (7" casing 2,300' 2,300' 1,200 6 -1/8" hole (3 -1/2" liner) 5,000' 5,000' 2,700 Panthera v3.0 2 1 '20/09 1/24/09 12 of 44 • Halliburton BAROID Chevron Mud Program Surface Interval: 12 -1/4" to -1,100'; Spud Mud Mud Properties Initial Value Final Value Density (ppg) 8.5 9.0 -9.4* Funnel Viscosity (seconds) 100 -200 70 -150 Yield Point 30 -40 20 -30 (cP) Plastic Viscostiy (lb /100 sf) 10 -30 12 -25 10 second Gel Strength (lb /100 sf) 10 -15 10 -15 10 minute Gel Strength (lb /100 sf) 20 -40 20-40 pH 9 -9.5 9 -9.5 API Filtrate(cc) Unrestricted <12 *Weight increase due to natural progression of solids. A weight up is not programmed. Surface Interval The surface interval of this well will be drilled with a conventional spud mud as formulated below: Base Formulation: Fresh Water - .982 bbl /bbl Aquagel - 25 ppb X -Tend II - .1 ppb (250 viscosity) Caustic soda - .2 ppb (pH 9 -9.5) Spud the well with maximum flow rates (600 gpm minimum assuming 12 -1/4" hole w /4" drill pipe) to ensure good cuttings transport. Target an initial YP in the 30 -40 range with a 100 -200 viscosity. After penetrating the upper gravels, gradually reduce the funnel viscosity to ca. 70 -150 sec a s the hole allows. Reduce the API FL to under 12 cc /30 min with additions of Dextrid. At interval TD, pump a high viscosity or Barolift sweep and condition the mud for running casing. Once the casing is landed, pre -treat the system for cement with a minimum of 0.5 ppb citric acid and 1.0 ppb bicarb. Add 0.25 -0.5 ppg Carbonox or Barathin to thin mud to target properties (converse with the cementers to see what properties they have based their design on). With an initial mud density of 8.5 ppg, please note the other issues of concern as listed below: 1. Make sure all members of the drilling team are aware of the potential of encountering gas hydrates. 2. A mud weight increase is not currently programmed for drilling the gas hydrate interval of the well, if encountered. 3. If gas hydrates are noted, treat the system with 2.0 ppb of Driltreat (Lecithin) and ' %% by volume Dril -N- Slide. Some defoamer additions may also be necessary to help the gas break out. Contact Technical representative before additions of Driltreat. 4. Maintain the mud as cool as possible (40 - 60 °F if possible). Efforts to keep the fluid cool include mudding up with cold water, diluting the mud with cold water, and utilizing a mud chiller. Panthera v3.0 3 1 /20/09 1/24/09 13 of 44 Halliburton BAROID Chevron Mud Program Mud maintenance issues for this interval of the well are as follows: 1. Use Aquagel and X -Tend II for viscosity and YP requirements. Initially target a viscosity of 100 -200 range, allowing it to gradually decrease as the upper gravels are exited. 2. Use PAC L and /or Dextrid for API filtration control. No filtrate control is planned initially, but drop the fluid loss to the 12 cc range prior to exiting the permafrost. 3. Hold the pH in the 8.5 -9.5 range with caustic soda. 4. Dril -N- Slide /Condet additions will be required to minimize screen blinding. Maintain a total concentration of 1% v /v. 5. Control penetration rates based upon the ability of the surface system to process the drilling mud. 6. Daily additions of X -Cide 207 will be necessary to control bacterial action after adding Dextrid. 7. Minimize dilution requirements and keep the mud as clean as possible through aggressive use of solids - control equipment. 8. Once casing is on bottom, thin the mud with Carbonox or Barathin to minimize channeling and improve the cement job. A strong focus on minimizing waste needs to be in place before and while drilling all sections of this well. Do not jeopardize the integrity of the fluid system; however, all efforts need to be made to this end. Allow the pit volume to deplete prior to TD on the surface hole. This will leave more room in the pits for displaced mud when cementing. Ensure all solids control equipment is working properly prior to spudding. Utilize shakers, desanders /desilters, mud cleaners and centrifuge(s) to reduce solids and reduce dilution. No processes should take place that will lead to a build up of low gravity solids in the mud. Build and maintain the system with COLD water. All attempts to keep the temperature of the mud 40 — 60 °F should be made. A mud chiller will be utilized to minimize thawing of the permafrost and hole washout. Normal surface hole viscosities should be adequate for this vertical well. Maximum flow rates should be used to ensure good cuttings transport. Target an initial YP in the 30 -40 range then adjust as dictated by the actual hole cleaning requirements of the well. However, do not hesitate to quickly raise the viscosity if hole cleaning problems develop. Aquagel and X -Tend II additions should be utilized to provide rheological support as needed. Utilize high viscosity sweeps to supplement the hole cleaning capabilities of the system. On Smilodon, it was noted that adequate flowrates were not achieved due to shaker screen blinding. Maintain Dril -N- Slide /Condet at a total concentration of —1% to minimize screen blinding and the agglomeration of the clays. It is important to exercise caution to minimize the potential for creating a situation of lost circulation. Tripping speeds and casing running speeds should be slowed to reduce the effects of surge pressures on the formation especially with this elevated rheology. Do not attempt to run casing if the well is not in stable condition. Pumps should be "staged" on line slowly to avoid surging the hole and the pipe rotated to break the mud's gels before turning the pumps on. While tripping out of the surface hole on the original Panthera well, significant tight spots, packing off, and lost circulation were encountered resulting in stuck pipe and the inability to run casing. This was likely due to running gravel and the resultant increased hole diameter. Pay careful attention to detect any potentially sloughing gravel early. Panthera v 3.0 4 1 /20/09 1/24/09 14 of 44 I • Halliburton BAROID Chevron Mud Program Intermediate Interval: 8 -3/4" to 2,300'; 6% KCI /PHPA /Clayseal with Calcium Carbonate Mud Properties Initial Value Final Value Density (ppg) 9.1 -9.2 9.5 max* Funnel Viscosity (seconds) 45 -70 45 -70 Yield Point 15 -25 15 -25 (cP) Plastic Viscostiy fib/100 sf) 10 -22 12 -24 10 second gel 4 -8 4 -8 10 minute gel 6 -13 6 -14 pH 9 -9.5 9 -9.5 API filtrate <3.5 <3.5 Solids % <6 <6 * Unless hole conditions dictate otherwise Base Formulation: Fresh Water - 0.911 bbl KCI - 20 lbs (30 -32K ppm chlorides) EZ Mud DP - 0.75 lbs (.15 ppb in initial mix) Clayseal - 0.84 gal (none in initial mix) Dextrid - 3 lbs (API filtrate <3.5 cc) Barazan -D - 1 -2 lbs (as required for an initial 20 YP) KOH - 0.1 -.25 lbs (pH = 9 -9.5) Baracarb 5 - 9 lbs Baracarb 25 - 9 lbs Baracarb 50 - 12 lbs Dril -N -Slide - 1.0% v/v X -Cide 207 - 0.25 lbs Baracor 700 - 1 lbs Barascav D - 0.5 lbs (to be added at the rig when first circulating) ** Use Barite or Baracarb for any needed weight ups on this well. NOT drill solids. While drilling, gradually increase the EZ Mud DP until the full 0.75 ppb is reached. Once the full EZ Mud concentration is reached, begin to gradually add Clayseal to a final concentration of 0.84 gal /bbl. Ensure the shakers can handle a flowrate of 450 gpm at all times while increasing the EZ Mud and Clayseal concentrations. Once the full concentrations are achieved, maintain them until interval TD. Decrease the API filtrate to <3.5 cc /30 for the interval using Dextrid and /or PAC L. Keep low gravity drilled solids to a minimum ( <6% by volume if possible). Maintain the MBT at <12 ppb through dilution and solids control. Maintain the pH between 9.0 -9.5 with KOH. Daily additions of X -Cide 207 should be made to control bacterial action. The chloride level should be kept in the 28 -34K range through additions of KCI. The EZ Mud concentration should be maintained at .75 ppb. A 15 -25 YP should be maintained using Barazan D +. Extremely sticky clays were noted on the Smilodon well. Maintain —1% Dril -N -Slide in the system to combat screen blinding from sticky clays. Condet additions can also be made to combat screen blinding and clay agglomeration. The system will be weighted to 9.1 initially. Maintain the Baracarbs in their recommended concentrations for effective bridging. Expect a natural weight progression as drill solids build up in the fluid. Maximize Panthcra V 3.0 5 1'20/09 1/24/09 15 of 44 I I Halliburton BAROID Chevron Mud Program solids control usage and anticipate additional Baracarb additions when running the centrifuge to control drill solids. Do not allow the mud weight to increase over 9.5 ppg. If necessary, use whole mud dilutions to keep the mud weight in range. A 15 -25 YP should be maintained using Barazan D +. Periodic sweeps should be pumped and monitored to gauge their effectiveness. Special efforts should be made to keep ECD's and surge /swab pressures to a minimum. This will reduce the chances of lost circulation and also reduce damage to the exposed shales. If seepage losses are noted while drilling the sands, immediately string in STEELSEAL at 3 -5 sx/hr. Obtaining good logs and fluid samples are key goals of the well. hole can be anticipated for the first time tripping throw Tight ho p pp g h new hole after it has been drilled. If 9 backreaming becomes necessary, extreme caution must be used to avoid the potential for packing off and stuck pipe. Extended circulating times may be required to remove cuttings from the hole and minimize cuttings loading in the annulus. Mud plant support is available for this well. All efforts must be made to keep the mud system in good shape and maintain the mud weight as low as possible. Should whole mud dilution be needed, contact the mud plant well in advance to plan for any needed whole mud requirements. Panthera v3.0 6 1 20/09 1/24/09 16 of 44 • Halliburton BAROID Chevron Mud Program Production Interval: 6 -1/8" to 5,000'; 6% KCI /PHPA /Clayseal with Calcium Carbonate Mud Properties Initial Value Final Value Density (ppg) 9.1- 9.3 9.5 max * Funnel Viscosity (seconds) 45 -70 45 -70 Yield Point 15 -25 15 -25 (cP) Plastic Viscostiy (lb/100 sf) 10 -22 12 -24 10 second gel 4 -8 4 -8 10 minute gel 6 -13 6 -14 pH 9 -9.5 9 -9.5 API filtrate <3.5 <3.5 Solids % <6 <6 * Unless hole conditions dictate otherwise Base Formulation: Fresh Water - 0.911 bbl KCI - 20 lbs (30 -32K ppm chlorides) EZ Mud DP - 0.75 lbs (.15 ppb in initial mix) Clayseal - 0.84 gal (none in initial mix) Dextrid - 3 lbs (API filtrate <3.5 cc) Barazan -D - 1 -2 lbs (as required for an initial 20 YP) KOH - 0.1 -.25 lbs (pH = 9 -9.5) Baracarb 5 - 9 lbs Baracarb 25 - 9 lbs Baracarb 50 - 12 lbs Dril -N -Slide - 1.0% v/v X -Cide 207 - 0.25 lbs Baracor 700 - 1 ppb Barascav D - 0.5 ppb (to be added at the rig when first circulating) ** Use Barite or Baracarb for any needed weight ups on this well. NOT drill solids. The same mud system used in the intermediate interval will be used for the production interval. A whole mud dilution may be required to reduce drill solids and bring the fluid properties within program specification. Special attention should be paid to hole cleaning, flowrates, and surge /swab as higher ECDs will be seen in this smaller hole size. This will reduce the potential for lost circulation and reduce damage to exposed shales. Maintain the EZ Mud DP concentration in the 0.75 ppb range. Maintain the Clayseal concentration at 0.84 gal /bbl. Maintain the API filtrate at <3.5 cc /30 min using Dextrid and /or PAC L. Keep low gravity drilled solids to a minimum ( <6% by volume if possible). Maintain the MBT at <12 ppb through dilution and solids control. Maintain the pH between 9.0 -9.5 with KOH. Daily additions of X -Cide 207 should be made to control bacterial action. The chloride level should be kept in the 28 -34K range through additions of KCI. A 15 -25 YP should be maintained using Barazan D +. Maintain —1% Dril -N -Slide in the system to combat screen blinding from sticky clays. Condet additions can also be made to combat screen blinding and clay agglomeration. Panthers v3.0 7 1, 20/09 1/24/09 17 of 44 • • Halliburton BAROID Chevron Mud Program Maintain the Baracarbs in their recommended concentrations for effective bridging. Expect a natural weight progression as drill solids build up in the fluid. Maximize solids control usage and anticipate additional Baracarb additions when running the centrifuge to control drill solids. Do not allow the mud weight to increase over 9.5 ppg. If necessary, use whole mud dilutions to keep the mud weight in range. Periodic sweeps should be pumped and monitored to gauge their effectiveness. If seepage losses are noted while drilling the sands, immediately string in STEELSEAL at 3 -5 sx/hr. Obtaining good logs and fluid samples are key goals of the well. Tight hole can be anticipated for the first time tripping through new hole after it has been drilled. If backreaming becomes necessary, extreme caution must be used to avoid the potential for packing off and stuck pipe. Extended circulating times may be required to remove cuttings from the hole and minimize cuttings loading in the annulus. Again, ECDs will be magnified in this small hole size. Mud plant support is available for this well. All efforts must be made to keep the mud system in good shape and maintain the mud weight as low as possible. Should whole mud dilution be needed, contact the mud plant well in advance to plan for any needed whole mud requirements. Panthera v3.0 8 1'20109 1/24/09 18 of 44 Chevron '''NO %so Panthera 21 -6 -9 (P1) Proposal Scblumberger Report Date: November 19, 2008 Survey I DLS Computation Method: Minimum Curvature / Lubinski Client: Chevron Vertical Section Azimuth: 90.000° Field: White Hills Chevron Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure / Slot: Panthera / Panthera 21 -6-9 TVD Reference Datum: Rotary Table Well: Panthera 21 -6-9 TVD Reference Elevation: 375.00 ft relative to MSL • Borehole: Panthera 21 -6-9 Sea Bed I Ground Level Elevation: 354.00 ft relative to MSL UWI /API #: 50029 Magnetic Declination: 22.115° Survey Name I Date: Panthera 21 -6-9 / November 19, 2008 Total Field Strength: 57612.664 nT Tort 1 AHD I DDI I ERD ratio: 0.000° / 0.00 ft / 0.000 /0.000 Magnetic Dip: 80.479° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: February 01, 2009 • Location LatlLong: N 69.85367311, W 149.89032932 Magnetic Declination Model: BGGM 2008 Location Grid N/E YIX: N 5795946.070 ftUS, E 513835.450 ftUS North Reference: True North Grid Convergence Angle: +0.10296061° • • Total Corr Mag North -> True North: +22.115° Grid Scale Factor. 0.99990022 Local Coordinates Referenced To: Well Head Measured Vertical Mag / Gray Directional Comments Depth Inclination Azimuth Sub -Sea TVD TVD Section NS EW Tool Face DLS Difficulty Northing Easting Latitude Longitude (ft ) (deg) (deg) (ft) (ft) _ (ft) )ft ) (ft) (deg) (deg /100ft ) Index (ftUS) (ftUS) RKB 0.00 0.00 0.00 - 375.00 0.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 GL 21.00 0.00 0.00 - 354.00 21.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 16" Conductor 176.00 0.00 0.00 - 199.00 176.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 200.00 0.00 0.00 - 175.00 200.00 0.00 0.00 0.00 - -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 MSL 375.00 0.00 0.00 0.00 375.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 400.00 0.00 0.00 25.00 400.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 600.00 0.00 0.00 225.00 600.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 800.00 0.00 0.00 425.00 800.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 Base Perm 1000.00 0.00 0.00 625.00 1000.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 1200.00 0.00 0.00 825.00 1200.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 1400.00 0.00 0.00 1025.00 1400.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.890 Prince Creek C 1443.00 0.00 0.00 1068.00 1443.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.8903 9 -5/8" Csg 1600.00 0.00 0.00 1225.00 1600.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 1800.00 0.00 0.00 1425.00 1800.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 2000.00 0.00 0.00 1625.00 2000.00 0.00 0.00 0.00 - -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 2200.00 0.00 0.00 1825.00 2200.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 2400.00 0.00 0.00 2025.00 2400.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 2600.00 0.00 0.00 2225.00 2600.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 2800.00 0.00 0.00 2425.00 2800.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 Schrader A 2809.00 0.00 0.00 2434.00 2809.00 0.00 0.00 0.00 - -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 3000.00 0.00 0.00 2625.00 3000.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 3200.00 0.00 0.00 2825.00 3200.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 WellDesign Ver SP 2.1 Bld( doc40x_100) Panthera 21 -6 -9 \Panthera 21 -6 -9 \Panthera 21 -6 -9 \Panthera 21 -6 -9 Generated 11/19/2008 8:16 AM Page 1 of 2 1/24/09 19 of 44 Measured Vertical MaglGray Directional Comments Depth Inclination Azimuth Sub•SeaTVD ND Section NS EW Tool Face DLS Difficulty Northing Easting Latitude Longitude (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft ) (deg) (deg /100ft ) Index (ftUS) _ (ftUS) 3400.00 0.00 0.00 3025.00 3400.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 3600.00 0.00 0.00 3225.00 3600.00 0.00 0.00 0.00 - -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 Schrader B 3604.00 0.00 0.00 3229.00 3604.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 3800.00 0.00 0.00 3425.00 3800.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 4000.00 0.00 0.00 3625.00 4000.00 0.00 0.00 0.00 - -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 4200.00 0.00 0.00 3825.00 4200.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 4400.00 0.00 0.00 4025.00 4400.00 0.00 0.00 0.00 - -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 Schrader C 4465.00 0.00 0.00 4090.00 4465.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 4600.00 0.00 0.00 4225.00 4600.00 0.00 0.00 0.00 - -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 Coleville 4615.00 0.00 0.00 4240.00 4615.00 0.00 0.00 0.00 -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 4800.00 0.00 0.00 4425.00 4800.00 0.00 0.00 0.00 - -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.890329 4999.00 0.00 0.00 4624.00 4999.00 0.00 0.00 0.00 - 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.890329 TD / 4 -1/2" Lnr • 5000.00 0.00 0.00 4625.00 5000.00 0.00 0.00 0.00 - -- 0.00 0.00 5795946.07 513835.45 N 69.85367311 W 149.89032932 Survey Error Model: SLB ISCWSA version 24 * ** 3 -D 95.00% Confidence 2.7955 sigma Surveying Proq: MD From (ft) MD To (ft ) EOU Freq Survey Tool Type Borehole -> Survey 0.00 26.00 1/100.00 SLB_MWD- STD -Depth Only Panthera 21 -6 -9 -> Panthera 21 -6 -9 26.00 5000.00 1/100.00 SLB_MWD -STD Panthera 21 -6 -9 -> Panthera 21 -6 -9 Legal Description: Northing (Y) fftUS1 Easting (X) fftUS1 Surface : 175 FSL 1388 FEL S21 T6N R9E UM 4 5795946.07 513835.45 BHL : 175 FSL 1388 FEL S21 T6N R9E UM 5795946.07 513835.45 S WellDesign Ver SP 2.1 Bld( doc40x_100) Panthera 21 -6 -9 \Panthera 21 -6 -9 \Panthera 21 -6 -9 \Panthera 21 -6 -9 Generated 11/19/2008 8:16 AM Page 2 of 2 1/24/09 20 of 44 C \;;r; • • "" NO Schlumberger WELL I FIELD STRUCTURE Panthera 21 -6 -9 (P1) White Hills Chevron Panthera Magnetic Parameters SMlau Location NAD27 Alaska State Planes. tons 04. US Feet M,eca6aroaua Model: BGGM 2009 DM SO479 Date. Feteuary 01. 2009 Lat• 040 51 13 223 NoM,ng 5795945 07 SUS God Com .0.10296061' Slot: Panther. 214.9 TODR.? • Rotary Table (375 CO 9 above MSL) Meg Dec •22.115' FS. 57612.777 Lon W149 53 25.189 Eaai.g 51303545154 Scale Fact 09999002175 Plan. Panthers 21.69 S.oy Date. November 19.2008 -1200 -600 0 600 1200 0 RKB�a 0 GL 16" Conductor _.._.. _.._.._.._.._...L.._.._.._.._.. - _.._.._.._.. _.._.._.. _.. �u1SL _.._.._......_.._.. _. -. -.. _.._.._.. _.._.._.. _..- .._.._.._.._... 600 600 °- ase Perm 1200 1200 • *ince Creek C 95/8" Cog 0 L 1800 1800 0 0 co 2400 2400 it . a) U CO a uchraderA 3000 3000 3600 ` 'Schrader B ` 4 3600 4200 4200 _.._.._.._.. _...o..-- ._.._.._.._.._.._.._.. .._.._.._. aGlraderC _.._.._.._.._.. .,_.._.._.._.._.._.._.._.. .._.._.._.._.._.._ - -- -- Colevllle 4800 4800 L TD 14 -1/2" Lnr anthera 21 -6 -9 1/24/09 21 of 44 -1200 -600 0 600 1200 Vertical Section (ft) Azim = 90 °, Scale = 1(in):600(ft) Origin = 0 N / -S, 0 E / -V es. Panthera Chevron Depth vs. Time —�h— Panthera Actual —4—Panthera Plan 0 • • • • • • Mob Rig /RU SPUD' 1000 12 -1-/4 - aIH e • 9 - 5/8" Casing - 8 - 3/4" Hol� 2000 C.) 3000 Logging 7" Liner 4000 6 i18 -H ole 5000 •••••••••• Loggin 4 - 1/2" Liner P&A 6000 ' I I I I I I i i I i i i i i i i i i i i I i i i i I i I I 0 5 10 15 20 25 30 35 40 45 50 Time (Days) 1/24/09 22 of 44 Calculation & Casing Design Factors Chevron Panthera 21 -6 -9 White Hills Exploration WELL: Panthera 21-6 -9 FIELD: White Hills DATE: 22- Jan -09 DESIGN BY: W. Quay Sect. 1 12 1/4• hole MUD WT. 9.5 PPG MASP= 0 Diverter Sect. 2 8 3/4" hole MUD WT. 9.3 PPG MASP= 766 psi Sect. 2 6-1/8" Hole MUD WT. 9.3 PPG MASP= 1,665 psi TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF STRENGTH PRESS @ RESIST. MINIMUM • DESCRIPTION W/O BF SECTION TENSION WORST CASE BOTTOM w/o TENSION WORST CASE MASP YIELD WORST CASE SECTION CASING BOTTOM TOP LENGTH WT. GRADE THREAD LBS LBS 1000 LBS SF TENSION PSI' PSI SF COLL. PSI** PSI SF BURST 1 9 -5/8" 1,100 0 1100 40 L -80 BTC 44,000 44,000 916 20.82 1,040 3,090 2.97 1,665 5,750 3.45 2 7" 2,300 1000 1300 26 L -80 BTC 33,800 33,800 450 13.31 2,260 5,410 2.39 1,665 7,240 4.35 TD 5,000 Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.452 psi /ft) and the casing evacuated for the internal stress (0 psVft) See attached sheet for calculation of MASP III 1/24/09 23 of 44 • • ■ C hevron Maximum Anticipated Surface Pressure Calculation Panthera 21 -6 -9 White Hills Exploration Assumptions: 1. Based on offset drilling data & G &G evaluation and analysis, the pore pressure gradient is predicted to be a a normal 0.433 psi /ft gradient from surface to planned total depth at 5000' TVD BRT. 2. The M.A.S.P. during drilling operations will be governed by the 7" shoe frac gradient, and is calculated based on a full column of gas between the 7" shoe and the surface. With the shoe for Panthera at 2300' ND, the Leak -off is anticipated to be —13 ppg EMW. 3. The M.A.S.P. during production operations will be the estimated SIBHP minus the gas hydrostatic pressure between TD & the surface. M.A.S.P. Drilling 8 - 3/4" Hole at 2300' TVD Max. pore pressure at T.D. = 2,300 ft. x 0.433 psi /ft = 996 psi M.A.S.P. = 996 psi - ( 0.1 psi /ft x 2300 ) = 766 psi Or Max. At Casing Shoe = 1,100 ft. x 11.0 ppg x 0.052 = 629 psi M.A.S.P. = 629 psi - ( 0.1 psi /ft x 2300 ) = 399 psi M.A.S.P. Drilling 6 - 1/8" Hole at 5000' TVD Max. pore pressure at T.D. = 5,000 ft. x 0.433 psi /ft = 2165 psi M.A.S.P. = 2165 psi - ( 0.1 psi /ft x 5000 ) = 1665 psi Or Max. At Casing Shoe = 2,300 ft. x 13.0 ppg x 0.052 = 1555 psi 1/24/09 24 of 44 • • Chevron Diverter Schematic Date - October 17, 2007 Location - White Hills - North Slpe Rig - Nabors 106E : Stack: Size - 13 5/8" Pressure Rating - 5000 PSI � c � sn P , Annular: Hydril 13 -5/8" GK v': 18a =IBSi i ilia 1 Double Gate BOP Deactivated q III II Drilling Spool .a Single Gate BOP Deactivated S Knife Valve: 12" Diverter Line 1/24/09 25 of 44 I - 1100 I+OO1 - - � - n Mitt �r. ,_ = 3.�.3111 I �T� II�r =3 I e � i • _ ` e ■I 1■! ' i1 it EINEi l' * . F® ■N.�I■I�•�� _ ��I i BUILDING 1 �O■ IIEIIEEI �� iil�i�l . �;::. r �la , r :1 01 - RII 1 1. .. 1 118 k. i- it : / Iliw 41I E' 11VIII NII ligENIM■iiiitte®�;� -ilk 10111 l _ I I % / :;'II�.1� ,' .-; ,,�� �1; I I - B UILDING 2 - - IIL ��i ®IME I; � �I�11� _ 1 r '111111111M ME1■ I I 1 ®I 1 ... "�,. o rove- BUILDING 3 I1 O iw�>�rV I. �`u� � nn � 1 =iIll � iI iI ■1_ ■lip III Il 111. ��al:r��� ®, II U Qi � ,;, rllll 1 . II■1 1 1 ■F 1 , �[ � 1' ∎ °O ri' I Oa r ' ` i ®■ ®mm■■®M occs �•! _ : - I111 1 8� �■II ! L ta ': 1 11„ II■ I 1 1 11 III BUILDING 5 ' 1 w I , I. I I I ! BUILDING 6 iI' 1 HELI RIG 106 - DIVERTER LINE LAYOUT 1 • • Chevron BOP Schematic Date - October 17, 2007 Location -White Hills -North Sipe Rig - Nabors 106E B, ,,_ , . AMINE Stack Size - 13 5/8" Pressure Rating - 5000 PSI ia � a� �a� � ;� Annular: Hydril 13-5/8" GK r . 0 ''R � � 1 it. t $I'IHI a IHI ifl Double Gate BOP Shaffer 13 -5/8" SL Drilling Spool Single Gate BOP Shaffer 13 -5/8" SL 4 Blanked Off Diverter Outlet 1/24/09 27 of 44 NABORS DRILi I \G N VIEW VIEW 0 " CC �ke, mien BB B `7 � l� j � o o � � � �� o o �'/' 1 if" c . , gill gig I-- ,t VIEW 1!") , �a� — _I El eb i 11 AA � � `t - C c r IA!, i i tii ciii IiiP glig Da qii (� t^ i ^D 1 VIEW 1 VIEW VIEW a 'D CC • AA B Scale: Date: Description: N.T.S APR 11 2007 3 -1/8" 5,000# NACE p Drawn by: DWG# ;` RAVI MANI NDR #106 TRIM CHOKE &KILL Checked REV MANIFOLD SYSTEM L. �7" 00 PACIFIC VALVE SERVICES INC. by: • Chevron I WO LEAK OFF TEST PROCEDURE 1. Clean out the rathole below the shoe, and drill 20' of new hole. Circulate and condition mud. 2. Pull the drill string into the shoe. Rig up to observe annulus pressures. 3. Close the pipe rams and pump down the drillpipe at a slow rate (1/4 - 1/3 BPM) if exposed formation is permeable. A non - permeable formation should be step tested to a predetermined pressure. 4. Measure the volume pumped and plot annulus pressure -vs- cumulative volume pumped. Compare annulus pressure to drill pipe pressure and confirm both are the same. Record and plot pressure versus volume pumped. The pumps should be shut down immediately upon indication of leak -off. Record the inital, shut down pressure and the pressure after 1, 2, and 3 minutes. 5. Release pressure and record the volume of fluid recovered in the trip tank. The point "B" shown in the attached graph at which the plot of drillpipe pressure stops increasing equally as the volume is pumped is called the P.I.T. limit, Leak Off, or pressure integrity test limit. The leak -off pressure is calculated as follows: Leak -off (EMW) = Mud weight in hole + P.I.T. (PSI) (0.052) X (shoe depth in TVD ft.) This equivalent mud weight should be made known to all drilling personnel to ensure it is not exceeded. See the drilling procedure for guidelines on expected LOT's or pressure integrity test limits for each casing shoe. C SURFACE PRESS. TYPICAL PIT PLOT (psi) VOLUME PUMPED SHUT -IN -TIME (BBLS) (MIN) NOTES: Point "A" will have some variance until the system begins to pressure up. Point "B" is the leak off and is abbreviated LOT. Point "C" is known as the injection pressure and is usually dependent on rate. Point "D" is known as the fracture closure pressure and may not stabilize if permeable formations are exposed. 1/24/09 29 of 44 1 . • 1/24/09 30 of 44 • Chevron UN OCAL �b a BU > ,w Chevron MideCont /Alask North America Alaska Resources Exploration and Production Company 1, 10 . 11111 S. Wil Houston, TX 77009 North Slope Alaska White Hills Prospect SHALLOW HAZARD ANALYSIS PANTHERA 21 -6 -9 CHEVRON ACREAGE ar�cst circ -us �h LON {SLWJD' :F -57 �� �1K- UB 1 1 ry = , t''-'1'.C., - :P -7J0• HSTAR3 '! ° lliEIK i �P Fl�r r , x C6 V +I �i �� ~•' �98P� 11 ir r \ •( o ' ' e i 1 M a i.� R��. � r " r ..l .' t t 1 r � � )'� � i j x , i j y lt `r. ' ,r `. �� I ! - - '� � 1 i r te ��, 'rip,, o' ! } It ). - /J ' ' � ` . .-'7 � `� 'S . l II } 'F � ,` _ ' °- `r te �'- - x '•�.. \ iy t • �I' ri �I � ' 4 � �� � .,ate �' ��) }� \y'i • l � " w`a` -�- �� Z� �� 1 r `ifI � } s . 5 5� « te r 1 , 2,- t y ` K Sir �, 31 of 44 1/24/09 • • Chevron UNOC eb Alaska Resources Union Oil Company of California (UOCC), a wholly owned indirec subsi diary of Chevron Corporation has leased approximately 20 x 40 sq miles o acreage on the Central North Slope of Alaska (Fig 1). UOCC currently %10. holds 70% and TOTAL U S A E &P Inc. holds 30% working interest in the field which is bounded by the National Petroeum Reserve of Alaska (NPRA) to the West, the Tranan - e Alaska Pipeline (TAPS) to the East, Kuparuk River and Prudhoe Bay Fields to the North and the Brooks Rg Foothills to the South. STRATIG $c RESERVOIR OBJECTIVES IMa S Cub�ik Fm- NE — 2 r ��e€ ®m .. r 2 C1 ET A�CEOUS * v . a Ea a�� Ba li, l 144 a — TRIASSIC ° i ii'' .. Oyer � � � 3, 245 _ .; LLYY { ��w PERMIAN . . .r- cr � P�- ®a 9® �, l ' s 286 AG cti ' PENNSYLVANIAN 3 .' .$ � . t t iii V-----4-'' : ,6-,,,. ..J isSISSIP 4X Ili :� ��r ;_Ili I _. PRE- , 2 _ MISSIS '' ' ce { MEGtSEUEI�CES ruck units Fig 2: White Hills Stratigraphy The Panthers 21 -6 -9 well will target reservoir objectives in the shallow Tertiary through Upper Cretaceous (Mastrictian) strata referred to as the Saganivriktok, Prince Creek, Ugnu and West Sak Formations bounded at the top by the permafrost and down to a total dept of approximately 5000 ft MD. Overall, the sequence records aregressive- transgressive cycle starting with the West Sak (Schrader Bluff) shallow marine prograding shelf sands, overlain by Ugnu fluvial - deltaic and then Non marine Prince Creek and Sagavanirktok clastic strata. (Fro USG Open -File Report 20 -1182) 2 1/24/09 32 of 44 1 Chevron UNOCAL 76 Alaska Resources 11 PRINCE CREEK FORMATION Saqavanirktok Group and Prince Creek Formation The Panthera 21 -6 -9 well will spud in Tertiary generally upward- coarsening Sagavanirktok siltstones, fine to very-fine grained sandstones, interbedded bentonitic mudstones with minor lignite horizons, and gravels deposited under shallow marine to non - marine conditions. Below the Sagavanirktok Group are undifferentiated Prince Creek coarse clastic strata, comprised of gravels, coarse lithic sands, lignites, and siltstones. The Prince Creek sandstones typically exhibit 8 -30% clay content, with porosities to 38% and permeabilities to several darcies. UGNU FORMATION Uqnu Sands The Early Paleocene Ugnu Formation consists of upper -fine to medium and coarse grained lithic sandstones, siltstones, bentonitic shales, lignites, and some gravels deposited in a non - marine delta plain environment. The sandstones are poorly indurated to unconsolidated, with porosities exceeding 35% and to several darcies permeability. Heavy oil saturation is common 30 miles to the north in Kuparuk River, Milne Point, and Prudhoe Bay fields. WEST SAK FORMATION West Sak Sands The West Sak consists of a shallowing upward shallow marine sequence comprised of very fine- grained, single and amalgamated hummocky cross - stratified sandstone beds. The formation is typically characterized by fine to medium - grained, unconsolidated but well sorted sands interbedded with siltstones, mudstones, and coals. The West Sak sands were deposited in a shoreface to proximal shelf environment. Lower West Sak members were deposited in a lower shoreface to inner shelf setting by storm - generated waves and currents, both the upper and lower members showing good continuity both in the subsurface in areas with good control and in the outcrops to the southwest and south. 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"'C4ti9,�` (Y {''?! �"ir °�`' >,L.y.' >b xa 4 , «�ry ,. } �,•, arm.,..r • -«zA �'�.., $+n w T^� „`c� t CX o v `�y� t r �',� y ' t �y •� w;r,�'1 �'+- L.�,."`'"• s-.p' , y*�u� �JC"S„ y Panthere mw� M e��t�r t 'y 2 200 'u'k` *•^*.- �a"�t4c 'v , z+s ^i �„^; yy �' Mt ° ":"(re v,.., fix X '"*., d s „ r” e" m µ" � 'i 'HffiJh+ "n a �R*"- '�' > ea �4 r "�'+,r � w „ ��.��.$� � r •��� �j` t'�' ,{,�W a;�f ,;'y '"t " �f t; "' s � a v"� ' �r+v y+ �, _ �R.� _ , n , .. �. . kl*< --. .- - `�.:_"P ,. -'�". w kd. 1'P3, .. .1 � .. i kR+:"lY".ti , ... I•. J �k 1 'c '}4hsc: tip_ v.L"'` 4 d.. Fig 3: Pre -stack time migrated White Hills 2D seismic line (wg82 -30); dip direction The regional structure on the top of the West Sak in the vicinity of the Panthera 21 -6 -9 well is a monocline that strikes north -south and dips eastward at between 1 and 2 °. The reservoir occurs at relatively shallow depths within the West Sak core area, with the top of the "D" sand being located at between -2536 and - -2801 feet subsea. To the west of the core area the top of the West Sak shallows until it intersects the base of the permafrost at about 1,000 feet subsea to the west of Panthera 21 -6 -9. The Panthera structural area consists of a Northwest- Southeast trending closure with stratigraphic and dip related traps. The structure is thought to have both permafrost and temperature seals. The structure shows distinctive depositional fairways for sand accumulation based on 2D seismic, surface geology, and magnetic data. The structure sub - outcrops at certain places throughout the field allowing regional correlation between 4 1/24/09 34 of 44 I 0 Chevron UNOCAL. 76 Alaska Resources al iN S 1 the source rock and target formations. The primary reservoir objectives include gas in the Prince Creek, Ugnu and West Sak formations. GEOPHYSICAL DATA QUALITY ,ail' -Kft • CfK - , ' St{YL-A-U4 4 y IAN ISLAND' F -5i � '� 8K -2$ ' "IK 1 4e . * -�'` - P 0.; HSFAR3 }T� y ce, • W 81K - ` ,% � 1 .s. v � I . F I' ti � 41:1:I F Q l r 0 V d► c i '1 � b ` • ...-P1 11 08 B • % fs, - . t ic71 ' RO gf,:pref, ; , , i ; ', ,',?, .-, Il • - +1{ i S ? , , a �`' t -.,. _ _ . (,. S#2 2N349 r y F ' :, ) Z r V. ' r CIRQUE 1 CiRQl� } TOOLIK ri )'.I 1 + 1 r:`, I t KILUKB1 2,. 151 RUBY s � J � 1 r . 2P.441 � � „ 'J 1 r 1 � _ NWfR N1 n , e ' r NARVaQ #1 . Ba Data Area iA . J lqi, TIWtR -S1 WOLFBUflON 32-7 -8 , * r ' a I l '',.., ,,,.: WOLFBUTTON 25-6-9' 444 + S S x'11 k'' L ' tic- I , i ', 5 t s /... ,� �, ii ' ',,j.---s, ) _ ,NLY1 l ' ' Y �� •----_ •' _� -''- '``.. al guk #1 , BUSH f f . ' ' l si _ " a we - . -i r „ , �''` s " � ti th cat � �� } n fi J ` 4 , `' �y " ( ', 7 y Fig 4: Approximate mapped extent of poor quality 2D seismic data Chevron has an extensive grid of 2D spec data in addition to 9 proprietary 2D lines acquired in 2007 within the White Hills area and north bound through our working interest fields of Kuparuk and Prudhoe Bay. There are no 3D seismic volumes which entirely cover the White Hills area. Currently, our key 2D lines through the White Hills prospective area have undergone several stages of reprocessing. In 2002, GeoTrace produced a pre stack migration data set which was later reprocessed by Unocal in 2005 to attempt to apply newer noise reduction techniques. However, after the merger with Chevron, and high grading of the White Hills prospective area, it was decided to try and increase the signal to noise ratio of the data further by applying Chevron's 5 1/24/09 35 of 44 ill 0 Chevron UNOCAL b Alaska Resources V W . proprietary noise attenuation technique. This was in effort to enhance the image in a large swath of low frequency, poor quality data (Fig 4). This poor data zone is coincident with a large portion of the Chevron acreage on the Central North Slope. Consequently, Chevron decided to acquire 9 lines of (see below) of proprietary 2D seismic in 2007 to better resolve the stratigraphy, structure, identify potential shallow hazards, and aid in well placement. 2007 DATA ACQUISITION In the winter of 2007 (Jan 5 -Feb 11) nine 2D lines, approximately 170 sq m as outlined on Fig 5, were acquired over the White Hills area by CGGVeritas. The survey was designed to tie the current proposed well locations in a North -West — South -East strike direction with two long North – South tie lines. Every attempt was made to avoid water bodies whenever possible due to the statics issues that ice lakes induce on seismic data. The drilling program for the White Hills area was developed from both geologic and geophysical data sets. Regional, reprocessed, and the 2007 White Hills 2D were evaluated to assess the potential for any shallow hazards. However, in general, the 2D seismic data quality is not adequate in some of the proposed well v locations to fully determine the potential for shallow hazards. s —4 ‘... 1 ,r- T .,, _ , . e , � 3 ti ; + � ' �` t 1y \ .� I, . V t JT '.w,." * � �k ,,ii 1 �Ka.. ` . 7 ' i "N`� � � 5 rp' s •� y+ .I7 --J ,\y_. ^ , 1 �.. fi t. . ,.�,�`. � � ° y h wF. ` 7 ___ � 4 ' T I ,, Fig 5: Chevron 2007 2D seismic acquisition lines; acquired by CGG Veritas 6 1/24/09 36 of 44 0 • Chevron UNOCAL 2b Alaska Resources Il l. POTENTIAL SHALLOW HAZARDS I 151 ° 00 ° ��� 149 ° 60 148 ° 00` FREE GAS o IIIIIV' ,. r } 03 mi MILNL • QINT s ? , _ 0 - Tarn rn w Y e ,y 4. ,- Accumulation --,, ''' / r 'P''' AIM ' " ' f4+4 41111 lo i ;',-' ' - ., ',;4:1-- W liblig"" affillit ,i t-, 2k . 1 111 itilLeatr:,Ai C- ,,,,,,z,,,,,1„: ... ::iisat--,;:.;., ) wilvA,,i fril ; `ti 1 'r �""sk 3"' 7 +'s�s e on. FI . o 1 1A a +T.... - .',r, ;.�i 1 1.i oil .1; Nil ti1/4. it / - Ir..11l� 14 ta p ► Eileen 1x,1 „, Q, Accumulation A ° ' AS r i! 1F-1111 k. 1 ►PRA '' ,,� • IF White Hills ' � , `� `i ' , � - ! �. 4 _ TE �� >r _ _ Area fir Al Fig 6: Alaska North Slope Gas Hydrate Energy Resources, USGS Open File Report 2004 -1454; by Timothy Collett Permafrost is expected down to 1200 ft below the surface thickening northbound. There is the possibility that gas hydrates could be present although not expected. The current known accumulations of Gas Hydrates (Fig 6) do no appear to be present in the White Hills prospective area. The 2D pre -stack time migration line, tying the Cirque wells (Fig 7a, b), shows a high amplitude reflector at the base of permafrost and bounded by faults. We suspect that this well blow out is possibly due to shallow gas. - 7 1/24/09 37 of 44 00 * ,.. , le. J7J ,, -0:1'' 1* - - fj,) ''' . ' '. 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R„..,v,.%.71zll y4;..„.,..71-11.(,),g, ...if:iv:I.:lilt:1 ifitA4?)1,iiiikilcAt: t!-I' i+c5 t- 1, ‘4P'''' ef. , :,. , •, ,, ,t..... , „ 1 A4 Ali', '1,A *i.r‘higArii `i.4.4. ofte 1 ef_ i ,,,, ,.,,•,*, - -:2,,,,,ige,r- .,. -,,„ . ol,k,4 , 4 - . . 0 0 C) 2 ' `,'! 4-, ItV4. ',,vi,./*tf ,iilitir.AbeetiiiteT,:r''.. ‘-',1',11 ' •\ i S t... ,,...--:. 4 .1t A I A 1 t',ei 1?,1.,.s*,,,,,:4,14,,,,,ii...:,,,r;0:11,14j941,tori„...."-,,:,;41:o..tseit4)..Lvti...e7r..„.4e.t.";7/1410,,,A4,...14,, 1,:siAl 1,,,111.1.3. ;;•1,`,.. .,=er *.,..!!1,,,,‘ c-, il, i., l' .;A, ' .. -1 mill 3 , g /7. ' l'fitrIt( '''Xi.11;Xkll'irtRIArfo'Nk'.7.44 'AI, 4-” 1. . „....- .4 U 12 '0114 ;.'.;,)i'Alj,'4,41lAi24.t.,,,, litt:/ '-, - ''''ff ' 10 l'.' 1•' • - a 2 .01 . _ Z : AL D R '.1,,,tril,,,,,..}-,,le.4ww...-1114.47it...,' if4fifti--14411111.4), . i illi „44, cp.,'" .treti h .4 i t . , 1 , - ., „ = ,- 5. I4 jt1.?:.irpf. 444411)1' :lia1'3141/"147FAIelk4'11.113i,,1:1:1":1311 it - -'17 4%- ''''''' , *-.. iltrigfl ..ii,,,c4441 i. ffilf. C 4,',.,, ''' '''''i ifV t I tlig•-',P ", 0 filA 15 T: ' _ - w ,c ' u '-- S Chevron UNOCAL 6 Alaska Resources The vintage 2D seismic data quality is extremely poor in some areas. The zone around Panthera 21 -6 -9 in particular is of poor quality on the vintage data set (Fig 8a) and the recent 2007 Chevron White Hills 2D (Fig 8b). Possible sources for this diminished resolution are due to ice lakes and large sections of gravel. Ice lakes pose a significant challenge when processing and interpreting seismic data because of statics issues which diminish the image quality and frequencies in that section and gravels tend to disperse the seismic waves (Fig 8 a,b). In general the data was found to have strong mode conversions for incident p -wave. With the current state of the seismic, it is difficult to truly asses the potential for shallow hazards. 0 100 150 2t 0 150 300 300 400 454 1 851 1100 gfi Aw �� :oo �" ' �3. ^ r o $' ' Jf �.� ' :::: • 4— ` .,5 .%: M �ffi ' - 0' y *'` A 1 r. 1� 'i., �.�' v :. -er �� i..c'�1 i �✓ r .��, �a �, .g �. u+� �. 'S"a� y,, � a t ��' � <i .fY,� : t 'b.' �La�x �.. � r4� '�*tt• �� � srP' '� r �...:ti s . � 'has ,1, ..* �h t ..a `4.'t '�i,�. ?. t� �' t � '" v . - i fig �, 4,•lc i.,p q 2'k 'a�4 FMS , ge" ; ^' .y ': � F`Y "f"° 3yTM '.r i'7 �' � #��„ �i �'�� � i' sl � #t � ° a' , s .- , �t,.f�' �' ?=;�°c *h5 500 �� .� ;, '� �c- x. - =x'�' .'' 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TM� ' ' y, �s �'�' g t . - � l 4 .' i •' Bari.'" - ":5 p '.,.. ma g080001 6340m -1 W0-82 -30 NW 74 tr /cm 2.7 IPS SE Fig 8a: Vintage Pre -stack time migrated White Hills 2D seismic line (wg82 -30); dip direction 9 1/24/09 39 of 44 • • UNOCAL Chevron �s Alaska Resources 1.050 11 1250 Panthers 21 6 -9 Panthers 28 6 -9 � �' u n -6 C�,50 0 Di l i 47' - i 1g5 0l� tt� 2 9 50'1 ' j . ' �I: 0 77- - x : <tt .� _, I tab• AI- ' ", ' 1 ... "�" a v"c:^ . ' 4, ":a _ ; -fi r,..„. a- -" +„ .,- - `: , -h z . +. + . cam ,K' `. :. - - r :a c '- 4 z .. s �„,+ - yG" ^� fi . �' ,r 2 � R ' - ' r,& - '-:�� +Fe � -, ¢ ue 's 500 :: . -`" 50 '°•" ri °. �° . -.�, . _ ,tom . _ m '-- - - a; - Vf 1000 —` r .. - 1 007 '^ mac" A ,. kr .. k ..:.•E 4�"" „ -- -� 1500 1500 — .. �. - ---- ._ 41 .� x.— • :_. - rye- -- x _ — _ ,., _ .. --� .. -- R ,. 6 — - — pstrna16z4 - 15 9 9m -- ' GH -07 -103 w tr /cm 2.7 IPS E Fig 8b: 2007 Chevron White Hills 2D seismic line (WH07 103); dip direction Pan- 28'6' 9 r 5 3 • 200 4 3� o® �! a ®p uan m ma nmc 7'.' �a ro ..... m®', ,. � a wem ''''7 mrs xe 4 sacs • „ s m . ° °#ma d00 j -,,.:1,...:':-=:-..:'4.,-..-:.:::::::11:--„,;.:?.....,'.' � �s a i s a t m, ;,� t �. u se s � • , R ,. 7 ' r , r+- y ,. r ' € d � 3 �1 q�' �. x , o L e s A . . t � ; (.*'",; r,'1'",, ',t i. ..S�'"`..� ' sT cr ' °• . r t; {° t,aJ fi ;r as� k d q� `i°ro s ,.. A m 'i"aY , * *, : � }. , e . Y, 3, 0. p " , s v $ ,rfa t ,: fir:. t : , A y �t a x �." �, r 4?r '�er a :;'^e -.. " ^- ' G ;''3' x 't- � . a t y . 41 sw�c � a : :. 1' V r + 6f, ,s 44 sx7 f a 1 li i. .' ^ k'*' a a x 3200 – � �. r, K-'r ° - '. ns + x : f 7,V'� Z 5.: � aA ;;w, ' ,{`; „- f , .a ,�-+ : � . t" @ p y � 1'300 ire id, A'Y i` 7" €T '` ,+, .'�° i 3G0J 5 5 �Rt.13 "git, , .v.,. az........ e, . a , ? '' is t t — ' " ,.... ^r. , « .= r--.,., 1 ,ak ... _ r ^�', ak t ..' x ' �vm `.''ra- 38x10 4.. -. m r. 4 '' „ .- °,.,, '�'' K ,° s .'s . , „:, . .,� x '-:,r ,, ;'t ,_ . T ' . ^ J m «— r ,. ,s� ." ..~N . -a" 4.i : o,; . .: - n e "°- m n � -r Joy . t c . : r - 4, « Mw -- � .: . :a s 2200 ,m ..� ..s �k. '" '", > + �" A " v 'S` .te °,�. a -;u . • " � ; - b - -., " "'ate;= ,,, .sue .�. � � .� .rw�tI...- .-.te S" sa 00 Tx�:p �� ' � , te a-,+" 4 a -000 ` �"''� ..� � .€ &ya. .. �..- ,� k * "" t . sg + £�,.L- ^ "` . ,mo t. _ —_ ' ", - 9 a s, 4 a..' 41 2800 1• ,r.„,.,„' . ., % "'°''s " "„ :- a x!,.. ^^p ?�.t` _ +� - a`. a,a. 80 '� _ ,, ; � � .a i••rt, .... to Fig 9: Pre-stack time migrated White H 2D seismic line prk84 -20; dip direction 10 1 /24/09 40 o 44 • • Chevron UNOCAL O Alaska Resources 1111 Lastly, by projecting the Panthers 21 6 9 well to line prk84 20 (approximately 2.7 miles SW) there appears to be another possible shallow hazard or drilling hazard (Fig 9). Immediately belo the permafrost, there is a loss of amplitude strength which might indicate a gas hydrate or a large section of gravel. However, this line is also of very poor seismic quality to truly asses all possible hazards. GEO PRESSURE / VELOCITY ANALYSIS Checkshot and VSP data is sparse in the White Hills area. However, there is sufficient data to generate a velocity field (Fig. 8) across the region which • indicates that we should not encounter any velocity anomalies. The permafrost zone has higher velocities as expected and the transition beneath the frozen, lower velocity base is quite distinctive. • • CHECKSHOTS Wattroutton sus Time vs Depth 2000 ` " �v ' _ r ` " ' y' sr ,- . „'- T ub „ s � 1600 m `° � Tani,-,1 1160 t >. - 1 , .x S s 7 j a Ru by5T 1 1200 i'� ,4• x , '. it 1 - b . B y 5 N to ;" 7 g, a. - Y- a ? C NaCarq' -'1 • 1600 ~ v ' st , I4 4 ° —Melt, ater'ti -1 660 = $ ':' ,.,,,, ,, , ,, ,,-,,m ` V t . € s'l a 3 > $ FSa r7cr l f y �` e � !" , .'. n '� " y k S �'rz' 5 T 700 a t ` m� , c , i "tis "+�- � �es - T "� z a+, � r ..- »x xi ^T. .',� ' . .-r ,' � � - � „ 4 , 1* , , , y "1477.1 � Ii , '. r , € f3 -2 C =2 a• a ,, , `. , ' I, b.. .ia ° .; fi °d r 4e §,: � 1 .` st d .. , : _ i . ..` s. � ,. + , ,;,- -, .%.: ,m 'd„ ._.. o o a o 0 0 � '=" a o 0 . • 0 0 o 0 0 v . v. F v : C ND Depth (ft) below T - D datum • • Fig. 8 Checkshot and VSP Velocity Field across the White Hills and Surr Areas 11 1/24/09 41 of 44 0 • Chevron � T6 . UNOCAL ED Alaska Resources The Wolfbutton 25 -6 -9 is the most proximal checkshot to the proposed Panthera 21 -6 -9 well. We expect similar velocities as shown in (Fig 8b) on the Interval Velocity (Vint) vs Depth plot; Interval Transit Time (ITT) vs Depth. The plots show, as expected, faster velocities through permafrost and slower velocities through the zone of interest below the base of permafrost. From the velocity analysis, we expect a normally pressured regime through the Prince Creek, Ugnu, West Sak formations, and Colville zone. 4e. 1 TY . mt. e INKkihel9 1 - ,:11405. 9.awt1u1011% 1..0.10.. 1. ,. N0: O0 l�i1r11 f'11MI :slvFia. .... ,..., 00..1 1.l7� »..._ _... _. <, .......,. ' . ill 4 4 . frov11 TP: M' 1N0r Y u M: 7 2 fox 71 pa. I r. .um S. F 041700 200 170 100 170 160 150 110 170 120 110 100 00 00 70 CO 50 40 13 20 CON 4001 IMO MOO 14000 1000 MOO 20000 120144:10 10 50 00 TO 70 90 100110120 170140 0.0 OS 10 IS 2.0 24 3.0 0 50 CS LAID .00 0 � I ._-- -- -- r , Base Start of 600 555 �- Permafrost checkshot 1200 150 —• ,YL AID _ --®-. 1600.2$0 1,190 LIII X00 663 ii .__ 1.0054 0001 3 7100 .ISO _y= 3 1 • yllp 50q te a ` 014111 { 1 - .A -4 7600.50 - 700!x44 0001 ... . ` .... MO 6ID ___. — _ _ .gyp .- - - - - - _.._. alui Casing pt / . — = 1 5ID film splice Woo, \ ' 9000 !,<i _, � 10061 .O0p 1. j 1 1200 _. 4633 1 1675 =10. = 44.1!4 4�w 1 . 4WD CA y' l 11000 l .r4o .1 svo rv Fig 9. Wolfbutton 25 -6 -9: Time vs Depth, Vint vs Depth, ITT vs Depth 12 1/24/09 42 of 44 • • Chevron U NO CAL b Alaska Re sources 1111 1 1 1 . MUD WEIGH SHA RE SIST IVITY, AND DOWNHOLE SAMP PRESSURE ANALYSIS Key data in the vic of the propo Panth 2 6 -9 well include mu and resis tivity o f sh plots to indicate abnormal subsurface reservoir pressures, and downhole pressure sampler data fro the Ma stodon well. These wells. were use in addition to the checkshot and VSP data from the Wolfbutton 32 well in order to ex amine the possbility of pressure and veloc anomalies. Mud Weights (MW) in ppg were p lotted vs. depth for the Mastodon 6 -3 -9 well (Fig 10). The gra indicate that drilling was balanced through ou zone of interest and there were no abnormally pressured reservoirs. During the 208 drilling season, we did not encounter any pressure anomalies. Mastod Mast odon tuludweight ppg R - shal e (ohm m 10 or '-'7107.1/4,71.4 '''''.'::-,47,,,,*.i'':21-4:11 $.6 $.$ 4.2 9.4 3.& 9. 100 1 tft 0 0 iA A 4ai ; 13 ,,,,,..-h4.1..wr. = ,reit-N-4,--irl m ' --'4044 1 4 ,...., 10 00 ` t � 1000 '' WiftirtAk - 44,',4,..4, R ti C 2000 , r ° ., 2000 3 t.,;1., 10,407, -;t00,X127":;11,0f.".::-.4:tY: A [itlIteWitt* 4.$03,1t".' !A: ..74'.'"iY4',N ig. 3000 ; .S*4::7-41k,171:NZ - P-:*4 A. AU Y 01/44411 ;4't Y `�- a - 0 0,47;6::::e' z 4. F. OGG s � � r , , Fig 1 0 M ud w eig ht and ..? yg,'„Att, 10.4r: pN ,, so � " ' Shale R vers � Measure D epth plot for � � 4 ' a the M astodon 6 3 9 w ell . 6000 fJ Yy sago 9- 5/8 casing was run to , � : 187 2 ' . 13 1 /24/09 43 of 44 Chevron UNOCAL. =b 11100111 Alaska Resources White Hills Field Mastadon Well Pressure - All Points 2150.000 - - 2650.000 Pressure gradient shift below the Schrader Bluff A Sand 3150.000 2 Slope 1: 0.4515 psi /ft 1 Slope 2: 0.4773 psi /ft 3650.000 4150.000 4650.000 600.000 800.000 1000.000 1200.000 1400.000 1600.000 1800.000 Pressure, psi - Pressure Profile Figure 11. Reservoir pressure trends from down -hole sampler log (RCI log), indicating normally pressured reservoirs to the proposed total depth. SUMMARY In conclusion, there is possible shallow gas below permafrost; also possibility of gas hydrates. The uncompleted Panthera #1 indicates Shallow zones are very unconsolidated. Possible lost circulation zones between Coleville and total depth. Prepared by: Dave Buthman Qiang Sun Geologist / Technical Team Lead Exploration Geophysicist Alaska New Ventures Team Alaska New Ventures Team MidContinent / Alaska BU MidContinent / Alaska BU (281) 561-3401 (281) 561-4958 buthbdbt chevron.com moniquevelasquez a@.chevron.com 14 1/24/09 44 of 44 • . TRANSMITTAL LET TER CHECKLIST WELL NAME 1 u- et- e rat. 21— to PTD# 2.0 - D / Development Service /Exploratory Stratigraphic Test Non - Conventional Well Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(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. Please note the following special condition of this permit: Non - Conventional production or production testing of coal bed methane is not allowed Well for (name of well) until after (Compgnny Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 7/13/2007 WELL PERMIT CHECKLIST Field & Pool Program EXP Well bore seg Well Name: PANTHERA 21 -6 -9 PTD#: 2090110 Company UNION OIL CO OF CALIFORNIA __ -__ Initial Class/Type EXP./ PEND GeoArea 890_. Unit _____ On /Off Shore On Annular Disposal p Administration 1 Permit fee attached NA 2 Lease number appropriate Yes Correction made to 10 -401 form: Entire well within ADL 390003 3 Unique well name and number . Yes 4 Well located in a defined pool No Exploratory well 5 Well located proper distance from drilling unit boundary Yes 6 Well located proper distance from other wells Yes Nearby Panthera 28 -6 -9 was abandoned at 2020' due to hole problems. Nearest well drilled through Ugnu / - 7 Sufficient acreage available in drilling unit Yes Schrader Bluff/ West Sak section is Wolfbutton 25 -6 -9, located 3 -1/4 miles to the east - southeast 8 If deviated, is wellbore plat included NA Vertical well 9 Operator only affected party Yes - 10 Operator has appropriate bond in force Yes 11 Permit can be issued without conservation order Yes - Appr Date 12 Permit can be issued without administrative approval Yes SFD 1/27/2009 13 Can permit be approved before 15 -day wait Yes 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 I16 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 Yes Engineering j Surface casingprotects all known USDWs NA No subsurface water sources in area. Surface casing and intermediate liner fully cemented. 20 CMT vol adequate to circulate on conductor & surf csg Yes 1 21 CMT vol adequate to tie -in long string to surf csg Yes Intermediate liner will be fully cemented. 22 CMT will cover all known productive horizons Yes 23 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate tankage or reserve pit Yes Rig equipped with steel pits. No reserve pit planned. All waste to approved disposal well(s). 25 If a re- drill, has a 10 -403 for abandonment been approved NA 26 Adequate wellbore separation proposed Yes Nearest well Panthera 28 -6 -9 — 650' distant. 28 -6 -9 P &Aed last year. '27 If diverter required, does it meet regulations Yes 12 -1/4" hole planned. Rig equipped with 12" diverter line. This has been approved previously. Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Maximum expected formation pressure 8.4 EMW. MW planned up to 9.5 ppg or as needed. TEM 2/4/2009 29 BOPEs, do they meet regulation Yes G /� A 30 BOPE press rating appropriate; test to (put psig in comments) Yes MASP calculated at 1665 psi. 2500 psi BOP test planned. III ,[, 6 �r Y !31 Choke manifold complies w /API RP -53 (May 84) Yes 32 Work will occur without operation shutdown Yes 1 33 Is presence of H2S gas probable No H2S has not been reported in the offset wells. Mud should preclude H2S on rig. Rig has sensors and alarms. 34 Mechanical condition of wells within AOR verified For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures No Remote exploratory well Geology 36 Data resented on potential overpressure zones Yes Normal pressure expected. Well will be drilled with mud weights from 9.0 to 9.5 P P P p P 9 ppg. Appr Date 37 Seismic analysis of shallow gas zones Yes Data quality are generally poor, but it is possible that shallow gas or hydrates may be encountered. SFD 1/27/2009 38 Seabed condition survey (if off- shore) NA Hydrates mitigation measures are discussed in the mud program. Well will be mud logged from surface to TD. 39 Contact name /phone for weekly progress reports [exploratory only] Yes Walter Quay 907 - 263 -7812 Geologic Engineering Public Date: Date Date Commissioner: Commissioner: Co g oner Ilroji a.._,Of i - .
