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208-195
DATA SUBMITTAL COMPLIANCE REPORT 2/12/2013 Permit to Drill 2081950 Well Name /No. DEWLINE 1 Operator ULTRASTAR EXPLORATION LLC API No. 50- 029 - 23408 -00 -00 MD 9865 TVD 9865 Completion Date 4/5/2009 Completion Status P &A Current Status P &A UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: Mud Logs, AIT, GR, Neu Den, BHC Sonic Log (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data • Data Digital Dataset Log Log Run Interval OH / Type Med /Frmt Number Name Scale Media No Start Stop CH Received Comments EDP 17772 Report: Final Well R Open 4/6/2009 Daily Drilling, Drilling Parameters, GR, Morning Reps, and Mudlog PDF's. Log t/ Mud Log 2 Col 98 9865 Open 4/6/2009 MD Mud Log ED --. 'C Pdf 17905 Induction /Resistivity Open 4/23/2009 MD and TVD real time wireline log in PDS graphics ED C Las 17906 Induction /Resistivity 169 9823 Open 4/23/2009 QuadCombo, Cal, NPHI, CNT, GR, CCL, Tmp, RST, Tens, SPHI, TNPH, AHM Log Induction /Resistivity 2 Col 2491 9823 Open 4/23/2009 MD Power Pulse Field Print 1- Apr -2009 Log Induction /Resistivity 2 Col 0 0 Open 4/23/2009 MD Power Pulse Field Print 2- Apr -2009 1!og Induction /Resistivity 2 Col 100 9823 Open 4/23/2009 MD Power Pulse Field Print 1- Apr -2009 • i Log Induction /Resistivity 2 Col 0 0 Open 4/23/2009 MD DPM Power Pulse Field Print 23- Mar - -2009 Log Induction /Resistivity 2 Col 0 0 Open 4/23/2009 MD DPM Power Pulse Field Print 23- Mar - -2009 Log Induction /Resistivity 2 Col 100 9823 Open 4/23/2009 TVD Power Pulse Field I Print 1- Apr -2009 Log Induction /Resistivity 5 Col 2463 9865 Open 4/23/2009 Platform Express, BCS 2- Apr -2009 Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments DATA SUBMITTAL COMPLIANCE REPORT 2/12/2013 Permit to Drill 2081950 Well Name /No. DEWLINE 1 Operator ULTRASTAR EXPLORATION LLC API No. 50- 029 - 23408 -00 -00 MD 9865 TVD 865 Completion Date 4/5/2009 Completion Status P &A Current Status P &A UIC N Cuttings 100 9865 1285 Cores and /or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 2/23/2009. ADDITIONAL INFORMATION Well Cored? Y Daily History Received? / N Chips Received? 444- Formation Tops Y N Analysis Y�NI• • Received? Comments: Compliance Reviewed By: -_ Date: 43 51,14 AAS .1) • • al etro1eunT1 FREE C VV Home Ai utsscnptions Pubtrcations 4l Vol. 16, No. 13 Week of March 27, 2011 Providing coverage of Alaska and northern Canada's oil and gas industry Dewline unit expanded; another well - \Q\S require The State of Alaska has expanded the Dewline unit and required operator UltraStar Exploration to add another well to its plans for the acreage north of Prudhoe Bay. Under the new unit terms, UltraStar must now drill the N. Dewline No. 1 well by May 31, 2013, and the N. Dewline No. 2 well by May 31, 2014, or risk losing the unit. The Division of Oil and Gas made its ruling on March 15. The expansion adds ADL 390608, an offshore lease acquired in an October 2004 lease sale, to the unit. The expansion brings the size of the four -lease unit to some 4,533 acres. UltraStar drilled the Dewline No. 1 well at the unit in April 2009 and managing member Jim Weeks previously told Petroleum News that it plans to drill a follow up next year. Weeks described the N. Dewline No. 1 as a 14,000- to 15,000 -foot directional well to an offshore target from an onshore pad, with a 6,000 -foot displacement. The new expansion lease is slightly more than 6,000 feet from the shoreline in the Dewline unit. The main target for the well is in the Ivishak sandstone, but the well could also be used to explore potential targets in the Sag River formation and the Kuparuk formation. Although exploration drilling in the region north of Prudhoe Bay dates back to the 1960s, commercial production eludes the area, despite its proximity to significant infrastructure. —Eric Lidji 1 ��� ��� Puu�lofl ��� _ Maunder, Thomas E (DOA) From: Brian Brigandi[bhanbhgondi@f»pmionm] Sent: Tuesday, September 01, 2009 3:27 PM To: Maunder, Thomas E (DOA) Co: Bill Penrose Subject: Dew line #1 Site Clearance ~\«� Attachments: Site Clearance Final.pdf Tom, As you requested, I have put together a small report for the site clearance of the UltraStar Dewline #1. If you have any questions, or if 1 can help in any other way, please let me know. Sincerely, Brian Brigandi Geoscience and Logistics Specialist Fairweather E & P Services, Inc. (907) 258-3446 (907) 343-0319 (direct) (907) � 9/3/2009 • 1 UltraStar Dewline #1 Site Clearance The site clearance for the Dewline #1 (drilled in March and April 2009), was performed on August 22 -24, 2009. The site was accessed by helicopter and the work was performed by Brian Brigandi of Fairweather E &P Services, Inc. CH2MHilI had 2 employees on the clearance for one afternoon to pick up the initial bulk of the material. Mr. Brigandi finished the rest of the pick -up on his own. The site clearance consisted of a trash pick -up phase and an agency fly -over for confirmation of a clean and damage free area. The recovered debris consisted of typical material generated by oil field drilling operations: wooden dunnage, duct tape, wire, absorbent rags, pieces of pallets and road delineators. Clean -up was performed in three phases; the first was to gather the large pieces of material along the road and pad and the second was a finer sweep to gather the smaller pieces of material, generally located in the pad area. Then a helicopter fly -over and landing reconnaissance was performed to ensure the project area was clean. Three state agency representatives were flown out to the area and completed a full fly -over of the area: Alaska Department of Natural Resources (Gary Schultz), Alaska Oil and Gas Conservation Commission (Jeff Jones), and the North Slope Borough (Gordon Matumeak). All indicated a clean, damage free environment and indicated that a report would follow shortly. • S ‘ 1 ;Jac? tetc, ,.• tAit• SE edge of pad before clean-up 0 • ^y J" NE edge of pad before clean -up 0 µ .Vi, agsliv . / t . SW edge of pad before clean -up S . . .... . � , ! -- . . : ^~ 2 « ^ ■ Duck pond north of pad before clean-un \\ « • �y. . . Middle of pad before de n • I «.ems 411 a..' A SE edge of pad after clean -up. Cargo net can be seen with trash in the upper left. ... ..�:.0.: "---s SE edge of pad after clean -up. • • Middle of pad after clean -up. East edge of pad after clean -up. • S NE edge of pad after clean -up. East edge of pad after clean -up. • • East edge of pad after clean -up. k 'a • „, .sue x Middle of pad after clean -up showing mound on wellsite. • • Ice road after clean -up. Just east of the well pad. Ice road after clean -up. Approximately one mile from pad. • 0 .. 7 Ice road after clean -up. Approximately one and one half miles from pad. Ice road after clean -up. Approximately one and three quarter miles from pad. • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg, 9 /i4 jz& DATE: August 24, 2009 ( P. I. Supervisor ( FROM: Jeff Jones SUBJECT: Surface Abandonment Petroleum Inspector Dewline #1 Ultrastar Exploration LLC PTD # 2081950 August 24, 2009: I traveled to Ultrastar Exploration LLC's Dewline #1 well location to inspect the site for consideration of a final location clearance. Brian Bergandy was the Ultrastar representative at the site today. We toured the location and I noted that the cellar was properly backfilled and mounded to approximately 5' high. The small adjacent ponds appear to be natural in origin. The site appeared very clean and no significant damage to State lands was noted. I recommend final location clearance be granted for this exploration site. Summary: I inspected the well cellar and exploration site at Ultrastar Exploration LLC's Dewline #1 well and found all to be in compliance. Attachments: Dewline #1- 2081950 -1.J PG Dewline #1- 2081950 -2.JPG j e` i • • Location Clearance — Dewline #1 (Ultrastar Exploration LLC) Photos by AOGCC Inspector Jeff Jones August 24, 2009 .4: f +•w lwroist x W LL . > $ 5 . 5 ' A .az$� ` 5 y * `. ,y '#. .} # of ywMik:,'C yv' m+Y Pu ti� <iP y ."11,:litv. • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: Apr 10, 2009 P. I. Supervisor FROM: Bob Noble SUBJECT: Well Abandonment Petroleum Inspector Dewline #1 Ultra Star Exp. LLC PTD 208 -195 April 10, 2009: I received a call from Fairweather representative John O'Hara asking me to come out and inspect his abandonment of Ultra Star's Dewline #1 well. I met John on location later on in the evening. I found the marker plate to be 1 /2' thick and the correct size, and with the correct markings on it. The well was cut off 4 feet below tundra level and all stings of casing were full of hard cement. I told John he could weld the marker plate on top of the casing and back fill the well. I also explained to him that we needed the fill mounded over the well and try to keep ice out of the fill. Attachments: photos (2) i' 41110 • Surface Abandonment — Dewline #1 (UltraStar) PT 208 -195 Photos by AOGCC Inspector Bob Noble 4/10/2009 ,,,,,, e '''''' ' ••,.■ ' r te `§ �e t ! (( ,6: ¢ . „ ,, ,,, , k, '4 ¢ . t 'A � ,itE�y.� . 54 A ^ „, 'i. t Y e ' .te � , {rte. y y , 1° 4 4 S 1 ^ �� '` Marker Plate ^. — Dewline # 1 ': , „ ; A + rr „... 7' - . is„:„....t 4 , T ! ! K . ” ' ' �� - ` t, # ■ Ks o ' 1 ' Cas cutoff II \\ � 4 ft belo t : tundra level 0 Maunder, Thomas E (DOA) From: Alexey Sachivichik [alexey.sachivichik©fairweather.com] Sent: Wednesday, April 29, 2009 1:39 PM To: Maunder, Thomas E (DOA) Cc: Bill Penrose; Saltmarsh, Arthur C (DOA); Roby, David S (DOA) Subject: RE: Dewline #1 (208 -195) Tom, I didn't know about 404. But, you should have 407 with logs, which were submitted at the same time with 404. Regards .Sadie d �d\ O -ck-0 GAGCi\N\•CoN� Senior Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 ° L \ C'v G.'Tv`e- Anchorage, Alaska 99507 office: 907 - 258 -3446 cell: 907 575 7315 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Wednesday, April 29, 2009 1:34 PM To: Alexey Sachivichik Cc: Bill Penrose; Art Saltmarsh; Roby, David S (DOA) Subject: Dewline #1 (208 -195) Alexey and Bill, We have received a 404 with some attachments (P&A summary and photos) for the Dewline #1. Submitting a 404 is not correct. What is needed is the 407 with a summary of all operations and any other attachments (logs, mud Togs, etc). Call or message with any questions. Tom Maunder, PE AOGCC 4/29/2009 . . y % \?( \ » \ .4A l t iltifx. . \. \ ' ' '. 1,.. § .: ?. : . \ � f.; . d , � �/ § yw »_ « y \ §.< . v w . � � > . >� � x « ( < : : ° . � d . . y:. .§ w , . y > y _. . . � � � � � � , ..> :\ » . � � � \. \�� * x : ! ,. � �`° ���f \ .c"i , 7 R ^ ^ \ 0 , - � } 07' 4 ' , MN ± e "a • * Aa x J A Y Ygq s d a '» , � '"4 -' q ,b 'r5 �.;„, .-! a ir } - f, . ' ''''''' I .„,, ' k 3 M , -4!-*,,, .,-...,..,::k--,,--.1,14,41sc.,',,,,,,-,‘.,:,' ., - '- ._ , ., y,.+ aw° . „ R m „4` x A s a ••. g ' ' ''''''"if'' ''' "”" 'It ''''',';;"- ,,, ...;,'"'l i ti, ,- ' "+, ., ,t •.'„, ' '.:":+.'+';'' „t1-,.;" ' : y - e ' , -' '.'t ' ' ".',114' ' � " d ■ l ,s i f , r� a' gr " 445 ,e'�" :.. o f a 1# .J w m � t d `� � . � , T fig, ` "" ;, M " 1 " , :, ,` R w e e :, • " � - 4 fr 44' - ' . '' ' .: ..:*11111100L.1 - . '' ''''''c',' , ..", , ,.....*„,,,,,,,,..: ...,':"..:::7:1.‘ii',,`..'..',1''''''."''' '''' ' ' ' �' !�� { 0. p P i ° , - :a 8w M "' 3MF " ' ''' H lAk .,1,:, ` x. tl € a d _ 1 1 ,,, :::, „•,`'.4,- ** 42 ' ' °.'"'''.<.".1'''', ¢ .'a "r ° a �: a. ! M - I 4 a r _ - , gy p; ' , " y , '- 11, 4 ...‘,* f %it 1 , ' .,*tto,,.. ,,,,.. „.,, , ,,, „ :„. , ,,,,,j,4 ,,,,* , * * ,, , 4 " , ! ' w .. S, ...,_ :,,,,,,,,, ' STATE OF ALASKA y ,48 1 ALA,.. A OIL AND GAS CONSERVATION COM IaSION APR 2 3 2009 WELL COMPLETION OR RECOIViPLETION REP,!rrl 1a. Well Status: Oil ❑ Gas ❑ Plugged Q Abandoned Q Suspended ❑ 1b. Well Class:, r.ttui a 20AAC 25.105 2OAAC 25.110 Development Exploratory El GINJ WINJ❑ WDSPL❑ WAG ❑ Other No. of Completions: Service ❑ Stratigraphic Test❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: UltraStar Exploration, LLC. Aband.: /� /09 208 -195 - f 3 a- ‘ D a ,49-Ati 3. Address: 6. Date Spudded: 13. API Number: 1629 West 11th Avenue, Anchorage, Alaska, 99501 3/10/2009 ' 50- 029 - 23408 -0000 - 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 229' FSL, 483' FEL, Sec 18, T 12N, R 14E, UM 4/1/2009 / Dewline #1 - i Top of Productive Horizon: 8. KB (ft above MSL): 36 15. Field /Pool(s): 229' FSL, 483' FEL, Sec 18, T 12N, R 14E, UM Ground (ft MSL): 17.2 Exploratory Total Depth: 9. Plug Back Depth(MD +TVD): 229' FSL, 483' FEL, Sec 18, T 12N, R 14E, UM Surface 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 664038 y- 5993127 Zone- 4 9,865' ADL 389944 - TPI: x- 664038 y- 5993127 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 664038 y- 5993127 Zone- 4 N/A N/A 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) (ft MSL) _1,820' 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Mud Log, AIT, GR, Neutron /Density, BHC Sonic Log 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT CASING GRADE FT TOP BOTTOM TOP BOTTOM PULLED 16" 84 N -80HC 0' 80' 0' 80' 16" 9.625" 40 L -80 0' 2463' 0' 2463' 12.25" 1136 bbls/ 1632 sx 23. Open to production or injection? Yes El No gi If Yes, list each 24. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED N/A 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): No production test Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate ,..+ 27. CORE DATA Conventional Core(s) Acquired? Yes El No El Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. N/A ", ;4 E tiu L i '/ 4010 q-13o101 Form 10 -407 Revised 2/0 CONTINUED ON REVERSE M L • • 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME 1 MD 1 TVD Well tested? C Yes 0 No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top 0' 0' needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base 1820' 1820' Top Sag River Sand 9367' 9367' Base Sag River Sand � 9 .412' ...1 2' Top Ivishak 9487' 9487' Base Ivishak 9690' 9690' Formation at total depth: 30. List of Attachments: 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Alexey Sachivichik Fairweather, E &P Printed Name: J -.yes D. Weeks Title: Managing Partner Signatur 0 ,_ Phone: (907) 258-2969 Date: ,4 0 �/✓ w INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 2/2007 sir EXPLORATION, LLC REC C APR 2 ?- April 22, 2009 Alaska gt Gas ��s• ��r���issi�� Mr. Dan Seamount, Chairman Anchp Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 Dear Mr. Seamount, RE: Well Completion Report UltraStar Exploration, LLC, Dewline #1 PTD No. 208 -195 Sundry No. 309 -122 Dear Commissioner Seamount, UltraStar Exploration, LLC hereby submits its Well Completion Report for the work performed in drilling its Dewline #1 exploration well on the North Slope. Please find enclosed the following information for your files: 1) Form 10 -407 Well Completion or Re- completion Report and Log 2) Well As -Built Survey 3) Wellbore Schematic 4) Well Operations Summary 5) Wellbore Directional Survey Copies of the mud log and all wireline logs run were submitted earlier under separate cover. If you have any questions or require additional information, please contact me at (907) 258 -2969 or Alexey Sachivichik at 258 -3446. Sincerely, UL ' ASTAR EXPLORATION, LLC • .mes D. Weeks Managing Partner Attachments Cc: Alexey Sachivichik - Fairweather PM1 10 p DEWLINE #1 N TUNDRA 48 16' 9 EDGE OF ICE pPD a GRAPHIC SCALE 2eB mICE RO AD ACC a A ( IN FEET) 16' 1 inch = 100 ft. • VICINITY i ii, MAP � F NTS m + $ m m —_1 + m i m m m ICF ROAD ACCESS m t33' WIDE -+_ i V DEWLINE #1 '�' I --+ (AS- BUILT) N:5993127.2 P OINT TABLE E:66403:.0 ■e %%%%%%%%%%%%%%% POINT NOR THING EASTING t A 5993286.32 663875.50 B 5993379.52 664336.97 Go, R D G PRE _;. G , 1/ C 5992929.05 664435. 1 ED .. i? . ° ° " "'4°�gS��4 D 5992826.16 663970.27 H- T p F 5 � ° • '_ ° ° • • 'F 9 / E 5993175.91 663993.93 If *S49 49 m i\ •. W 0 F 5993209.80 664149.41 • • i G 5993035.86 664187.68 ;, C i i H 5993002.44 _ 664031.70 ;c Leonard d O'Hanley ° •11386 ^.,p NOTES: / • ° A• e• - 1) ICE PAD AS -BUILT SURVEY BY F.R. BELL & ASSOCIATES , f it. II1 �i I CNIL �``` DATE OF SURVEY: FEBRUARY 22, 2009 4 REFERENCE FIELD BOOK: MI09 -02, PAGES 17 -18. D SURVEYOR'S CERTIFICATE 2) WELL AS -BUILT BY F.R. BELL & ASSOCIATES. I HEREBY CERTIFY THAT I AM DATE OF SURVEY: APRIL 9, 2009 TUNDRA PROPERLY REGISTERED AND LICENSED REFERENCE FIELD BOOK: M109 -02, PAGES 27 -31. TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS 3) CONTOURS ARE AT 1' INTERVALS AS -BUILT REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION AND THAT ALL 4) ELEVATIONS ARE BASED ON ARCO MLLW DATUM. DIMENSIONS AND OTHER DETAILS ARE CORRECT AS OF FEBRUARY 22, 2009. 5) COORDINATES ARE NAD27, ALASKA STATE PLANE ZONE 4. 6) WELL CELLAR IS A VERTICAL 8' DIAMETER CMP. REFERENCE DRAWINGS N0. DATE REVISION BY CHK APPO•ENGINEERING RECORD DATE F. Robert € TITLE GF big FRBOR USDL 02 -01 DEWUNE D ICE PAD A5 -BUILT 0 0F1.}0 U LTR ASTA EXPLORATION D RILLP AD ISSUED FOR INFORMATION NMR PD DRN: ROBICHEAU 04-13 -09 ���) r r DRAWING: DSON: f�j! DEWLINE #1 CHK: OE(eAFF 04-13 -09 l` APP: % WELL & ICE PAD AS —BUILT SURVEY APP SCALE: _ 7 I'C' WORK ORDER DRAWING NUMBER REV SHEET ^_ 1 = 100 uw FRB09 USDL 03 -00 0 1 ein VEST MEMO LINE .4o,■ NM MODULE: OF I • • • • \ ^ 0 \����- 3 ° LLC Dewline #1 We bor Schematic P &A L;. \\ , \ ; >. :1m conductor *80' Bridge Plug at 200 / & -® mud 12-1/4" hole q \ 1 TOC m 2,282' MD \ � \ Ceme%rtainer at 331E MD },�_? 2 \ . — 2 \ \ \ »&y,4 #, L-80, BTC \ casing at %4 $9D BOC at 2,59'MD r -- .i \ \ | ( \ z \ z i § ( \ /22 8-1 "hole \ 9.8 p p g } mud ( \ z z \ { TOC at 9,12E MD • A \ \ -, • J % \ TDB 9,865' MD /TVD • • OPERATIONS SUMMARY U1traStar Dewline #1 February 23, 2009 0' MW N/A Vis N/A Incl 0.00 deg Finish and accept ice road and pad. Move in matting boards, berming supplies and camp. Set and berm camp, hook up power and heat. Commence bringing rig components to location. February 24, 2009 0' MW N/A Vis N/A Incl 0.00 deg Continue to move in rig components. Rig up rig mechanical shop. Commission fire alarms, water and sewage systems in camp. Rig up comms. Rig up containment area around camp and shop. February 25, 2009 0' MW N/A Vis N/A Incl 0.00 deg Rig crew S/D for night, CH continue hauling in and rigging up rig components. Re- survey conductor location and dig conductor hole to 40'. S/D for night. February 26, 2009 0' MW N/A Vis N/A Incl 0.00 deg Rig crew S/D for night, CH continue hauling in rig components. Finish digging conductor hole to 80'. S/D due to winds too high to P/U 80' conductor. Crews broke tour. Finish R/U shop and camp. Prep rig. February 27, 2009 80' MW N/A Vis N/A Incl 0.00 deg R/U shop and camp. Prep rig components. Install cellar, drill mouse hole. Set and cement 80' of 16" conductor. RDMO conductor drlg equip. Clean and level pad around cellar. WOW to lay rig liner. February 28, 2009 80' MW N/A Vis N/A Incl 0.00 deg WOW. Lay rig liner and rig mats. Lay fuel lines. Move in and set rig substructure. Move in and set derrick. Position other rig components. March 1, 2009 80' MW N/A Vis N/A Incl 0.00 deg • WOW. Crews performed "inside" work as possible, out of weather. March 2, 2009 80' MW N/A Vis N/A Incl 0.00 deg WOW. Rig up rig components. Fire boilers, run electrical, fuel and steam lines. Raise derrick. March 3, 2009 80' MW N/A Vis N/A Incl 0.00 deg Continue rig up. Most motors started. Install top drive and extend derrick. Set in rock washers. March 4, 2009 80' MW N/A Vis N/A Incl 0.00 deg Continue rig up. Install rig monitoring system. Set pipe shed. March 5, 2009 80' MW N/A Vis N/A Incl 0.00 deg Work on mud pit suction, discharge and electrical lines. Install rotary table driveshaft, work on top drive. P/U and R/U bails, elevators, tongs, etc. R/U gas buster lines. March 6, 2009 80' MW N/A Vis N/A Incl 0.00 deg Complete N/U lines to gas buster. Test electrical components of pit system. Cut off 16" conductor and N/U Vetco -Gray starting head. Pressure tested to 500 psi. March 7, 2009 80' MW N/A Vis N/A Incl 0.00 deg Complete N/U diverter stack. P/U and N/U diverter knife valve and 16" blue line. Circulate water through steel pits. Continue N/U Totco monitoring system. Installed and tested control lines for remote accumulator operation. March 8, 2009 80' MW N/A Vis N/A Incl 0.00 deg P/U and M/U 4" drill pipe into stands. P/U safety valve on single of drill pipe to test diverter stack. Function test diverter stack. Working on top drive electrical /computer problems. March 9, 2009 80' MW N/A Vis N/A Incl 0.00 deg • Continue to repair top drive computer system and Totco monitoring system. P/U and M/U BHA #1 components and TIH. Tag @98' March 10, 2009 595' MW 8.9 ppg Vis 300 Incl 1.61 deg Working on Totco monitoring system. Drill 12 -1/4" hole to 595' March 11, 2009 1219' MW 9.2 ppg Vis 340 Incl 1.37 deg Drill 12 -1/4" hole from 595' to 1219' and fine tune mud system. March 12, 2009 2515' MW 9.4 ppg Vis 160 Inc10.81 deg Drill 12 -1/4" hole from 1219' to 2515'. Start viper trip. March 13, 2009 2515' MW 9.3 Vis 188 Incl 0.71 deg POOH from 2515' to 1480'. Stuck BHA above jars. M/U surface fishing jars and jar BHA loose (jarring down). Circulate and work pipe, back ream out of hole to 1,290'. March 14, 2009 2515' MW 9.3 Vis 205 Incl 0.71 deg Back ream out of hole to 195'. RIH and condition hole. March 15, 2009 2525' MW 9.3 Vis 165 Inc10.71 deg Continue conditioning hole. Drill 10' of new hole. POOH. R/U and run 9 -5/8" casing. March 16, 2009 2525' MW 9.3 Vis 168 Inc10.71 deg Run 9 -5/8 ", 40 #, L -80, BTC casing to 1640' (40jts.) where wellbore became sticky. Run 9 -5/8" casing while circulating to TD. Ran total of 60 joints of casing. M/U Vetco Gray hanger and landing joint. Landed with shoe at 2,463' RKB. Circulate and condition mud for cement job. March 17, 2009 2525' MW 9.3 Vis 168 Inc10.71 deg Test lines to 3,000 psi. Pump 75 bbls 10.4 ppg. Mud Push spacer, 385 bbls lead cmt at . • 10.7 ppg + 55 bbls tail cmt at 15.8# ppg, 10 bbls water chaser. Displaced with mud, lost returns 43 bbls into displacement. Bumped plug, N/D diverter line, pitcher nipple, diverter valve, Hydril, diverter tee, spacer spool. March 18, 2009 2525' MW 9.1 Vis 58 Incl 0.71 deg Prep conductor for annulus cementing stinger. RIH with 1 -1/4" tbg, tag at 610'. Break circ, begin cementing, lost returns. POOH 7 jts, regain circ, RIH to 610'. Pump 250 bbls _peo_-u ifrnsr dement Good circ throughout but no cement returns. Job witnessed by AOGCC's Lou Grimaldi. POOH and WOC while preparing BOPE for N/U. March 19, 2009 2525' MW 9.1 Vis 58 Incl 0.71 deg RIH with 1 -1/4" CS Hydril string, tag up at 464' RKB. Pump 428 bbls oL11.8 ppg permafrost cement, received cement at surface. Job witnessed by AOGCC's Bob Noble. POOH and L/D cement stinger. N/U Vetco Gray MB -20 Multibowl wellhead and test to 5,000 psi for 10 min. — good test. Start N/U BOP's. March 20, 2009 2525' MW 9.0 Vis 44 Incl 0.71 deg Nipple up and test BOP's. Test annular preventer to 250 psi low / 3000 psi high; upper pipe rams, HCR, choke and kill, dart valve to 250 psi low / 5000 psi high. March 21, 2009 2525' MW 9.0 Vis 44 Incl 0.71 deg Complete BOP test. Test witnessed by AOGCC's John Crisp and Bob Noble. RIH w/ drill pipe out of derrick, inspecting for galled threads. Lay out damaged pipe. March 22, 2009 2525' MW 9.0 Vis 44 Incl 0.71 deg PU drill pipe, make up stands, stand back in derrick. Make up BHA #2, trip in hole. March 23, 2009 3029' MW 9.0 Vis 42 Incl 1.1 deg Test 9 -5/8" casing to 3,000 psi for 30 minutes. Drill out shoe track, rat hole and 20' of new hole to 2,545'. POH into shoe, displace spud mud from hole w/ new polymer mud. Perform LOT to 13.2 ppg EMW. Drill 8.5" hole to 3,029'. March 24, 2009 5018' MW 9.3 Vis 48 Incl 0.5 deg • • Drilled 8.5" hole from 3,029' to 5,018'. Trip out for wiper run. Hole sticky. March 25, 2009 5830' MW 9.5 Vis 51 Incl 0.35 deg MU top drive and backream hole to casing shoe. TIH and drill to 5,830'. March 26, 2009 6730' MW 9.6 Vis 51 Incl 1.04 deg Drill to 6,022'. Short trip to 5,000'. Drill ahead to 6,730'. March 27, 2009 7,761' MW 9.7 Vis 51 Incl 1.01 deg Drill to 7761'. Trip out to test BOP's March 28, 2009 7,761' MW 9.6 Vis 48 Incl 1.01 deg POOH, L/D BHA #2, test BOP rams, TIW, HCR and all choke manifold valves to 250psi low /5,000 psi high. Pressure test Hydril to 250 psi low /3,000 psi high. AOGCC's witnessing the BOP test was waived by Bob Noble. March 29, 2009 8,021' MW 9.6 Vis 47 Incl 0.99 deg Completed BOP test. TIH with BHA #3. Drill from 7,761' to 8,021'. March 30, 2009 8,885' MW 9.7 Vis 48 Incl 1.05 deg Drill from 8,021' to 8,885'. Wiper trip to 7,770'. TIH and tag bottom. March 31, 2009 9,565' MW 9.7 Vis 45 Incl 0.94 deg Drill from 8,885' to 9,565'. ✓April 1, 2009 9,865' MW 9.2 Vis 46 Incl 0.94 deg Drill to TD at 9,865',_short trip. Trip out of hole. April 2, 2009 9,865' MW 9.8 Vis 46 1nel 0.81 deg • Trip out of hole. LD BHA #3. R/U Schlumberger Wireline. Run Quad Combo log from TD to 2,463'. RD Wireline. LD HWDP. April 3, 2009 9,865' MW 9.8 Vis 46 Incl 0.81 deg POOH, L/D HWDP. TIH with drill pipe. RU cementers. Pump 10 bbls of water ahead, pressure test lines. Pump 58 bbls class G cement at 15.8 ppg followed by 2 bbls of water. Displace with mud. TOC at 9,128'. April 4, 2009 9,865' MW 9.8 Vis 48 Incl 0.81 deg POOH with drill pipe. Set Baker cement retainer with wireline at 2,310'. POOH. TIH with stinger. tag at 2.308'. Test casing to 1,590 psi for 30 minutes. Pump 15 bbls of CW -100 spacer and 22 bbls of 15.8 ppg cement through retainer, displace with 21 bbls of mud. Unsting, spot 2 bbls of cement on top of retainer. Casing test and cement job were witnessed by AOGCC's Chuck Sheve. April 5, 2009 9,865' MW N/A Vis N/A Incl N/A R/D cement equipment, L/D cementing stinger. P/U and M/U Baker CIBP. TIH and set at 200'. POOH. TIH to 197', pump 14.5 bbls of 15.9 ppg permafrost cement. POOH, lay down drill pipe. RD BOP stack. Prepare for rig move. April 6, 2009 9,865' MW N/A Vis N/A Incl N/A RD and prepare to move rig to Deadhorse. N/D stack and cutoff wellhead. Rig released at midnight. FINAL REPORT Exploratory 6 Company: UltraStar Well: ewhne 1 Field: W e I ry County: State: Alaska Country: Survey Record Survey Calculation Method : Minimum Radius of Curvature DLS Method : Lubinski North Reference : True North Total Correction Formula : Magnetic Dec Rig Location Latitude : 70 ° 23' 12.02" N Longitude : 148 ° 39' 53.98" W Tie In Point Measured Depth: 0.00 ft Inclination: 0.00 deg Azimuth: 0.00 deg True Vertical Depth: 0.00 ft North Displacement: 0.00 ft East Displacement: 0.00 ft N / -S VSec Origin: 0.00 ft E / -W VSec Origin: 0.00 ft Target Azimuth: 0.00 deg D &I Inits Computed and Values Used - Run 1 Geomagnetic Model : BGGM 2008 Geomagnetic Date : 08- Mar -2009 Computed Location B : 57710.59 nT +/- 300.00nT Used Location B : 57710.59 nT +/- 300.00nT Computed Location G : 32.24 ft/s2 +/- 0.08ft/s2 Used Location G : 32.24 ft/s2 +/- 0.08ft/s2 Computed Magnetic Dip : 80.98 deg +/- 0.45deg Used Magnetic Dip : 80.98 deg +/- 0.45deg Computed Magnetic Dec : 22.85 deg Used Magnetic Dec : 22.85 deg Computed Total Correction : 22.85 deg Used Total Correction : 22.85 deg D &I [nits Computed and Values Used - Run 2 Geomagnetic Model : BGGM 2008 Geomagnetic Date : 22- Mar -2009 Computed Location B : 57712.08 nT +/- 300.00nT Used Location B : 57712.08 nT +/- 300.00nT Computed Location G : 32.24 ft/s2 +/- 0.08ft/s2 Used Location G : 32.24 ft/s2 +/- 0.08ft/s2 Computed Magnetic Dip : 80.98 deg +/- 0.45deg Used Magnetic Dip : 80.98 deg +/- 0.45deg Computed Magnetic Dec : 22.83 deg Used Magnetic Dec : 22.83 deg Computed Total Correction : 22.83 deg Used Total Correction : 22.83 deg D &I Inits Computed and Values Used - Run 3 Geomagnetic Model : BGGM 2008 Geomagnetic Date : 29- Mar -2009 Computed Location B : 57712.16 nT +/- 300.00nT Used Location B : 57712.16 nT +/- 300.00nT Computed Location G : 32.24 ft/s2 +/- 0.08ft/s2 Used Location G : 32.24 ft/s2 +/- 0.08ft/s2 Computed Magnetic Dip : 80.98 deg +/- 0.45deg Used Magnetic Dip : 80.98 deg +/- 0.45deg Computed Magnetic Dec : 22.82 deg Used Magnetic Dec : 22.82 deg Computed Total Correction : 22.82 deg Used Total Correction : 22.82 deg Survey Quality Index 0 : Long, passed all criteria 2 : Long, failed mag criteria 9 : Manual Survey Correction Index 0 : No correction Seq MD Ind Azim Course TVD V Sec N/ - S E/ - W Closure at Azi DLS Tool Type QI CI (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (ft) (deg) deg /100f 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 90.00 0.00 TIP 2 176.31 0.24 158.27 176.31 176.31 -0.34 -0.34 0.14 0.36 158.27 0.14 PowerPuls 0 0 3 237.39 0.31 193.10 61.08 237.40 -0.62 -0.62 0.15 0.66 166.75 0.29 PowerPuls 0 0 4 298.43 0.53 181.09 61.04 298.42 -1.07 -1.07 0.10 1.08 174.44 0.39 PowerPuls 0 0 5 359.96 0.72 184.14 61.53 359.93 -1.74 -1.74 0.07 1.74 177.67 0.31 PowerPuls 0 0 6 421.95 0.97 193.99 61.99 421.94 -2.63 -2.63 -0.08 2.62 181.84 0.46 PowerPuls 0 0 7 483.18 0.94 183.76 61.23 483.15 -3.64 -3.64 -0.24 3.64 183.82 0.28 PowerPuls 0 0 8 548.28 1.23 183.60 65.10 548.26 -4.87 -4.87 -0.32 4.89 183.78 0.45 PowerPuls 0 0 9 611.76 1.61 185.58 63.47 611.69 -6.44 -6.44 -0.45 6.46 184.01 0.60 PowerPuls 0 0 1 1 n R72 AR 1 71 1 RR Rn R1 17 R77 R5 -R 2n -R 7(1 -n SA R 2R 1 Rd 1R n 1Q PnwarPi do n n 1 11 735.20 1.67 182.37 62.27 5.10 I -10.04 -10.04 -0.69 Er II 183.92 0.09 PowerPuls 0 0 12 798.09 1.66 181.99 62.89 97.96 J -11.86 -11.86 -0.76 11.8: 183.65 0.02 PowerPuls 0 0 13 858.30 1.56 182.93 60.21 858.14 -13.55 -13.55 -0.83 13.58 183.50 0.17 PowerPuls 0 0 14 920.17 1.57 181.85 61.88 920.00 -15.24 -15.24 -0.90 15.26 183.38 0.05 PowerPuls 0 0 15 983.87 1.57 188.18 63.69 983.66 -16.98 -16.98 -1.05 16.99 183.55 0.27 PowerPuls 0 0 16 1048.28 1.55 184.02 64.41 1048.07 -18.72 -18.72 -1.24 18.77 183.79 0.18 PowerPuls 0 0 17 1106.34 1.49 183.80 58.06 1106.08 -20.25 -20.25 -1.34 20.31 183.80 0.10 PowerPuls 0 0 18 1172.19 1.34 182.32 65.85 1171.91 -21.88 -21.88 -1.43 21.92 183.74 0.23 PowerPuls 0 0 19 1234.28 1.37 182.54 62.09 1234.00 -23.35 -23.35 -1.49 23.39 183.66 0.05 PowerPuls 0 0 20 1296.96 1.35 181.35 62.67 1296.65 -24.83 -24.83 -1.54 24.87 183.56 0.06 PowerPuls 0 0 21 1359.13 1.39 184.69 62.18 1358.80 -26.32 -26.32 -1.62 26.38 183.53 0.14 PowerPuls 0 0 22 1421.29 1.38 181.30 62.16 1420.95 -27.82 -27.82 -1.70 27.85 183.50 0.13 PowerPuls 0 0 23 1483.52 1.54 183.98 62.23 1483.17 -29.40 -29.40 -1.78 29.46 183.46 0.28 PowerPuls 0 0 24 1545.81 1.12 179.82 62.29 1545.42 -30.84 -30.84 -1.83 30.91 183.40 0.69 PowerPuls 0 0 25 1607.10 1.04 177.13 61.29 1606.70 -32.00 -32.00 -1.80 32.05 183.23 0.15 PowerPuls 0 0 26 1670.02 1.16 177.39 62.92 1669.62 -33.20 -33.20 -1.75 33.23 183.01 0.19 PowerPuls 0 0 27 1732.15 1.06 180.70 62.14 1731.74 -34.41 -34.41 -1.72 34.45 182.87 0.19 PowerPuls 0 0 28 1793.91 1.06 177.49 61.75 1793.48 -35.55 -35.55 -1.71 35.60 182.75 0.10 PowerPuls 0 0 29 1856.45 0.89 168.63 62.54 1856.03 -36.60 -36.60 -1.59 36.65 182.48 0.36 PowerPuls 0 0 30 1918.87 0.96 170.45 62.42 1918.43 -37.59 -37.59 -1.40 37.63 182.14 0.12 PowerPuls 2 0 31 1980.50 1.09 165.79 61.64 1980.06 -38.67 -38.67 -1.17 38.68 181.74 0.25 PowerPuls 2 0 32 2042.65 1.13 163.91 62.14 2042.19 -39.83 -39.83 -0.86 39.83 181.23 0.09 PowerPuls 2 0 33 2106.27 0.99 160.38 63.62 2105.80 -40.95 -40.95 -0.50 40.94 180.70 0.24 PowerPuls 2 0 34 2168.14 0.95 155.16 61.87 2167.66 -41.92 -41.92 -0.11 41.93 180.14 0.16 PowerPuls 0 0 35 2231.39 0.93 146.73 63.25 2230.91 -42.83 -42.83 0.40 42.81 179.47 0.22 PowerPuls 2 0 36 2293.79 0.94 143.31 62.41 2293.30 -43.66 -43.66 0.98 43.67 178.71 0.09 PowerPuls 2 0 37 2356.38 0.88 144.80 62.59 2355.89 -44.47 -44.47 1.56 44.49 177.99 0.10 PowerPuls 2 0 38 2417.92 0.84 128.15 61.53 2417.40 -45.13 -45.13 2.19 45.18 177.22 0.41 PowerPuls 2 0 39 2469.35 0.81 133.32 51.43 2468.84 -45.61 -45.61 2.75 45.70 176.55 0.16 PowerPuls 2 0 40 2475.83 0.71 130.43 6.48 2475.30 -45.67 -45.67 2.82 45.77 176.47 1.66 PowerPuls 2 0 41 2544.70 1.03 127.03 68.87 2544.16 -46.32 -46.32 3.63 46.46 175.51 0.47 PowerPuls 0 0 42 2608.06 0.97 118.56 63.36 2607.54 -46.92 -46.92 4.56 47.15 174.45 0.25 PowerPuls 0 0 43 2667.01 0.98 113.12 58.95 2666.45 -47.35 -47.35 5.46 47.67 173.42 0.16 PowerPuls 0 0 44 2728.80 1.05 115.50 61.79 2728.25 -47.81 -47.81 6.46 48.23 172.30 0.13 PowerPuls 0 0 45 2791.09 1.15 113.81 62.28 2790.51 -48.30 -48.30 7.55 48.88 171.12 0.17 PowerPuls 0 0 46 2855.67 1.02 111.15 64.58 2855.10 -48.77 -48.77 8.68 49.54 169.91 0.22 PowerPuls 0 0 47 2918.93 1.12 110.09 63.27 2918.34 -49.19 -49.19 9.78 50.16 168.75 0.16 PowerPuls 2 0 48 2990.49 1.09 107.57 71.56 2989.89 -49.63 -49.63 11.09 50.85 167.41 0.08 PowerPuls 2 0 49 3043.36 1.10 113.62 52.88 3042.76 -49.99 -49.99 12.03 51.41 166.47 0.22 PowerPuls 0 0 50 3106.51 0.99 111.29 63.14 3105.88 -50.43 -50.43 13.09 52.10 165.44 0.19 PowerPuls 0 0 51 3169.45 0.94 102.17 62.94 3168.83 -50.74 -50.74 14.11 52.66 164.46 0.26 PowerPuls 2 0 52 3230.99 0.97 99.53 61.54 3230.37 -50.93 -50.93 15.11 53.12 163.47 0.09 PowerPuls 0 0 53 3293.42 0.89 102.01 62.43 3292.76 -51.12 -51.12 16.11 53.61 162.51 0.14 PowerPuls 0 0 54 3356.28 0.88 100.57 62.86 3355.61 -51.31 -51.31 17.06 54.07 161.61 0.04 PowerPuls 0 0 55 3418.86 0.98 89.54 62.58 3418.20 -51.39 -51.39 18.07 54.46 160.63 0.33 PowerPuls 0 0 56 3480.38 1.05 93.13 61.53 3479.71 -51.42 -51.42 19.16 54.86 159.57 0.15 PowerPuls 0 0 57 3543.36 1.01 90.60 62.97 3542.69 -51.46 -51.46 20.29 55.31 158.48 0.10 PowerPuls 0 0 58 3606.01 0.96 88.49 62.65 3605.31 -51.45 -51.45 21.37 55.71 157.45 0.10 PowerPuls 0 0 59 3668.04 0.88 90.44 62.03 3667.35 -51.44 -51.44 22.36 56.10 156.50 0.14 PowerPuls 0 0 60 3729.94 0.83 90.11 61.90 3729.25 -51.44 -51.44 23.29 56.46 155.65 0.08 PowerPuls 0 0 61 3792.88 0.79 88.41 62.94 3792.17 -51.43 -51.43 24.17 56.82 154.82 0.07 PowerPuls 0 0 62 3854.99 0.80 98.14 62.11 3854.27 -51.48 -51.48 25.03 57.25 154.07 0.22 PowerPuls 0 0 63 3917.30 0.74 88.44 62.32 3916.57 -51.53 -51.53 25.86 57.64 153.35 0.23 PowerPuls 2 0 1 CA AAAI C') n OG - 7O 1 , 11 AAAn'77 G1 AC Cl AG n1 Al CO 7n 1C1 nC nnC n,.......n..i,. n n V4 '+U'i I .JG U.V, OJ. /O IG'{,G 1 '+u'#V./ / - J 1.+o - J I. '# J Z../.V I JO.JU IJ I.iu U.VJ ruvvei UIJ V I U 65 4167.92 0.63 100.10 126.41 67.17 -51.52 -51.52 28.86 59. 150.75 0.14 PowerPuls 0 0 66 4228.62 0.62 100.86 60.70 227.86 1-51.64 -51.64 29.51 59.48 150.26 0.02 PowerPuls 0 0 67 4291.92 0.60 106.69 63.30 4291.18 -51.80 -51.80 30.16 59.94 149.79 0.10 PowerPuls 0 0 68 4353.77 0.59 97.85 61.85 4353.02 -51.94 -51.94 30.79 60.37 149.34 0.15 PowerPuls 0 0 69 4416.05 0.61 103.28 62.28 4415.29 -52.06 -52.06 31.43 60.79 148.88 0.10 PowerPuls 0 0 70 4478.17 0.51 104.91 62.12 4477.42 -52.20 -52.20 32.02 61.25 148.48 0.16 PowerPuls 0 0 71 4540.58 0.51 103.22 62.41 4539.82 -52.34 -52.34 32.55 61.65 148.12 0.02 PowerPuls 0 0 72 4603.47 0.52 107.15 62.90 4602.72 -52.49 -52.49 33.10 62.04 147.76 0.06 PowerPuls 0 0 73 4790.53 0.55 108.98 187.06 4789.75 -53.03 -53.03 34.76 63.42 146.76 0.02 PowerPuls 0 0 74 4977.90 0.50 101.82 187.37 4977.11 -53.49 -53.49 36.41 64.70 145.76 0.04 PowerPuls 0 0 75 5226.76 0.26 143.36 248.86 5225.99 -54.16 -54.16 37.81 66.04 145.08 0.14 PowerPuls 0 0 76 5476.80 0.33 113.38 250.04 5476.02 -54.91 -54.91 38.81 67.22 144.75 0.07 PowerPuls 0 0 77 5538.84 0.39 118.29 62.04 5538.06 -55.08 -55.08 39.16 67.59 144.59 0.11 PowerPuls 0 0 78 5725.39 0.35 130.28 186.56 5724.60 -55.75 -55.75 40.15 68.70 144.24 0.05 PowerPuls 0 0 79 5970.09 0.65 165.56 244.70 5969.28 -57.57 -57.57 41.07 70.73 144.50 0.17 PowerPuls 0 0 80 6031.93 0.74 164.00 61.84 6031.12 -58.30 -58.30 41.27 71.42 144.71 0.15 PowerPuls 0 0 81 6094.37 0.81 159.33 62.44 6093.55 -59.10 -59.10 41.53 72.24 144.90 0.15 PowerPuls 0 0 82 6220.64 0.81 166.97 126.28 6219.81 -60.80 -60.80 42.05 73.92 145.33 0.09 PowerPuls 0 0 83 6471.14 0.97 158.89 250.49 6470.27 -64.50 -64.50 43.21 77.66 146.18 0.08 PowerPuls 0 0 84 6720.13 1.04 172.23 248.99 6719.22 -68.71 -68.71 44.28 81.73 147.20 0.10 PowerPuls 0 0 85 6968.75 0.86 162.48 248.62 6967.81 -72.72 -72.72 45.14 85.60 148.17 0.10 PowerPuls 0 0 86 7219.00 0.64 170.00 250.26 7218.05 -75.89 -75.89 45.95 88.71 148.81 0.10 PowerPuls 0 0 87 7462.83 1.13 175.98 243.83 7461.85 -79.63 -79.63 46.36 92.13 149.79 0.20 PowerPuls 0 0 88 7592.31 1.18 170.04 129.48 7591.32 -82.22 -82.22 46.68 94.55 150.42 0.10 PowerPuls 0 0 89 7716.36 1.01 170.22 124.04 7715.34 -84.55 -84.55 47.08 96.78 150.89 0.14 PowerPuls 0 0 90 7967.39 0.99 169.43 251.04 7966.32 -88.87 -88.87 47.86 100.92 151.70 0.01 PowerPuls 2 0 91 8216.03 1.01 165.88 248.63 8214.94 -93.10 -93.10 48.79 105.12 152.35 0.03 PowerPuls 2 0 92 8465.79 0.80 159.53 249.76 8464.65 -96.87 -96.87 49.93 108.99 152.73 0.09 PowerPuls 2 0 93 8714.93 0.86 157.22 249.14 8713.77 - 100.22 - 100.22 51.27 112.57 152.91 0.03 PowerPuls 2 0 94 8963.30 1.05 156.54 248.37 8962.09 - 104.03 - 104.03 52.89 116.70 153.05 0.08 PowerPuls 2 0 95 9211.90 0.90 146.18 248.60 9210.68 - 107.74 - 107.74 54.89 120.93 153.00 0.09 PowerPuls 2 0 96 9459.15 0.94 150.83 247.26 9457.89 - 111.13 - 111.13 56.96 124.87 152.86 0.03 PowerPuls 2 0 97 9772.09 0.72 147.37 312.94 9770.78 - 115.02 - 115.02 59.27 129.40 152.74 0.07 PowerPuls 2 0 98 9820.97 0.78 154.91 48.88 9819.66 - 115.58 - 115.58 59.57 130.02 152.73 0.24 PowerPuls 2 0 99 9865.00 0.78 154.91 44.03 9863.69 - 116.13 - 116.13 59.83 130.64 152.74 0.00 Manual 9 • . • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg ? DATE: Apr 10, 2009 P. I. Supervisor 1 4 / ' ( Z i FROM: Bob Noble SUBJECT: Well Abandonment Petroleum Inspector Dewline #1 Ultra Star Exp. LLC PTD 208 -195 April 10, 2009: I received a call from Fairweather representative John O'Hara asking me to come out and inspect his abandonment of Ultra Star's Dewline #1 well. I met John on location later on in the evening. I found the marker plate to be ' /2" thick and the correct size, and with the correct markings on it. The well was cut off 4 feet below tundra level and all stings of casing were full of hard cement. I told John he could weld the marker plate on top of the casing and back fill the well. I also explained to him that we needed the fill mounded over the well and try to keep ice out of the fill. Attachments: photos (2) 0 0 Surface Abandonment — Dewline #1 (UltraStar) PTD 208 -195 Photos by AOGCC Inspector Bob Noble 4/10/2009 , 'i ' .,:re .,„,, .,, ; .,,,..,,,,„.. ! 4.. 'i,4' z x S iT gw a A i€ n k ( 1.51. � . `}t �, '' 6 Y+ "` 3 r P ,« d N ,. ' e ,, ',,,��., v ty �4 � ' '-' ( 1 �I ' ,a '� p r "? , 4' , i' " h' s � ; r ♦ C r d ru 9 I t +ta. y 1 4 "4 3 , ! x , ,, °u ,r nd: ' ,'� Z. 4 a ,, '' a� , .�. W .�' Div 1 n ^ o �� ' '" a d a "� ru ' S �` V I I'� "� vL = � Marker Plate o- — Dewline #1 g, 4 t�yy, r 'S' �t� f ! ,,i , t� e p 4. j ,.e �. ' 4 ? is F+ i t Li,' , ,, Yc 'A 4. f { '�, '' M 4� • ® n a e"W .,• , ' — R ,i � a � > x :4A,,' k s � .Y a r • n v q p y ° 1 '' �" 2 itt 3� e, f w tt :/ +s �,m a� 8 .4 '' ' � " Via' +Y'». r • v ''. . ,, , k r F . a 1 7 ,,, q ,o s M. S �` s�yr •,P' °` _ '1 ry . . „,, ?; ," ..;',.'..., ''!',`, .`,4 ; .;,,,ei, ' :=, i*tri ' 4 '`,$ , 'O ' . , ;'''', 1,, ` '1 , , ,k, ,t, , .0 ,k.L.,. r Ail: Sri Casing cutoff r` , 4 ft below .' ~t ,u r Y r nth r r , tundra level 440444 �Yy ° .mom ., Page 1 of 3 411 Maunder, Thomas E (DOA) From: Bill Penrose [bill@fairweather.com] Sent: Wednesday, April 08, 2009 9:35 AM To: Maunder, Thomas E (DOA) Cc: Regg, James B (DOA); Alexey Sachivichik Subject: RE: Dew line *1 (29.-t<P&A a() - Tom, Thanks for your patience.. The cementing unit and crew went directty off to another job and it took a while to recover the P&A plug pumping documentation for the Dewrine well. I'll address the issues in the order raised: 1. The cementer's using the incorrect drill pipe capacity was an honest mistake but it should have been caught by the company man who should have been doing his own calculations. The cementer was wrong to argue with the inspector rather than working with him toward agreeing on the right number. 2. It is unconscionable that the company man did not make his own cementing calculations and that the job was so loosely run that the inspector had to take an active part in conducting the work. Corrective actions with the company man are being formulated. 3_ White the P&A procedure sent to you and to the field did in fact call for an amount of spacer to follow the casing shoe abandonment plug equal to the amount preceding the cement, it was realized before pumping the job that this would unbalance the hole. No spacer was pumped after the cement slurry. When the stinger was pulled out of the retainer, the last two barrels of cement fell out on top of the retainer (as planned) and the mud column achieved balance on both sides, 4. As I mentioned earner in this message stream, when it was realized that the company man planned to use water for displacement, he was instructed to use mud. This instruction was carried out However„ I need to correct an inaccuracy in that earlier message. The weight of the mud used was 9,8 ppg, not 11.8 ppg as I mistakenly wrote. 9.8 ppg is the maximum mud weight used to drill the well and is the weight of the mud between all of the P&A plugs. A detailed review of this cementing job indicates that while the objectives were achieved, the job was not run well by those on site. Personnel actions are being taken to assure that future such jobs are conducted by people actively engaged in verifying designs and volumes and intimately participating in the execution of the work.. Please call if you would like to discuss this further. Regards, Vitt P'eausete Vice President/ Drilling Manager Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaslca.gov] Sent: Monday, April 06, 2009 2:42 PM To: Bill Penrose; Alexey Sachivichik Cc Regg, B (DOA) 7/4/2010 Page 2 of 3 Subject: RE: Dewline #1 (208 -194) P&A Bill, Thanks for your message and follow -up call. We will look forward to additional information as it becomes available. Tom Maunder, PE AOGCC From: Bill Penrose [maitto:bill @fairweather.com] Sent: Monday, April 06, 2009 2:23 PM To: Maunder, Thomas E (DOA); Alexey Sachivichik Cc: Regg, James B (DOA) Subject: RE: Dewline #1 (208 -194) P&A Torn, I've interviewed the co man and am waiting on cementing records from SLB. This may not occur until tomorrow, at which time I can respond to you with facts. Hopefully this is alright with you. I can address the displacement fluid now though. Upon hearing that the Company Man intended to use water for displacement, he was expressly told by our office to use 11..9 ppg drilling mud which he reportedly did. 111 get back with you later today or tomorrow on this. Regards, Fitt Peir'1t44e Vice President T Drilling Manager Fairweather E &P Services, Inc. 2000 East :th Ave., Suite 200 Anchorage, Alaska 99507 907- 258 -3446 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Monday, April 06, 2009 12:50 PM To: Bill Penrose; Alexey Sachivichik Cc: Regg, James B (DOA) Subject: RE: Dewline #1 (208 -194) P&A Bill and Alexey, I am reviewing the sundry for the operation at Dewline. I did not have an opportunity to review the document on Friday. I see one of the issues that the Inspector identified regarding the plug at the surface casing_ The same volume of 'spacer" is recommended ahead and behind the cement_ Following the procedure as indicated, if all the lead spacer was circulated into the annulus the column height in the annulus would be signi5c antty less than the height in the DP when the stinger is putted from the retainer.. The fluid column would be underbalarced to the inside_ I also understand that water was the spacer that the Company Man proposed to use. Cali or message with any questions. Torn Maunder, PE AOGCC From: Maunder, Thomas E (DOA) Sent: Monday, April 06, 2009 11:24 AM To: 'Bill Penrose'; Alexey Sachivichik Cc: Regg, James B (DOA) Subject: Dewline #1 (208 -194) P&A Importance: High 7/4/2010 Page 3 of 3 • Bill and Atexey, Below is a report we received from the AOGCC Inspector who was on location to witness the placement of the casing shoe plug on Dewline #1. tt appears that neither the Company Representative nor the cementer was adequately prepared to properly execute the planned plugging operation. This is concerning. Jim and 1 would appreciate a report/message regarding what information or resolution might result here.. Call or message with any questions. Tom Maunder, PE AOGCC From: Regg, James B (DOA) Sent: Monday, April 06, 2009 10:36 AM To: Maunder, Thomas E (DOA) Subject: Dewline #1 P&A 4/4/09 Surface casing shoe plug Dewline#1. Received call at 5 am to be ready at 9am. Cement in place at midnight. Neither the cementer nor company man was prepared for the operatiion. In checking the calculations, it was determined that the cementer had used the wrong capacity number for DP (and wanted to argue about the number) and that the company man hadn't even put a pencil to the job. There was also a discussion as to proper displacement In the end, 1 found it necessary to tell them how to do the job. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907 - 793 -1236 I 7/4/2010 • • 4 EXPLORATION. LLC April 8, 2009 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations UltraStar Exploration, LLC: Dewline #1 (PTD # 208 -195) Dear Mr. Seamount, This is a report of UltraStar Exploration's well operations on the Dewline #1 for the period April 3 through April 6, 2009, inclusive. April 3, 2009 9,865' MW 9.8 Vis 46 Incl 0.81 deg POOH, L/D HWDP. TIH with drill pipe. RU cementers. Pump 10 bbls of water ahead, pressure test lines. Pump 58 bbls class G cement at 15.8 ppg followed by 2 bbls of water. Displace with mud. TOC at 9,128'. April 4, 2009 9,865' MW 9.8 Vis 48 Incl 0.81 deg POOH with drill pipe. Set Baker cement retainer with wireline at 2,310'. POOH. TIH with stinger, tag at 2,308'. Test casing to 1,590 psi for 30 minutes. Pump 15 bbls of CW -100 spacer and 22 bbls of 15.8 ppg cement through retainer, displace with 21 bbls of mud. Unsting, spot 2 bbls of cement on top of retainer. Casing test and cement job were witnessed by AOGCC's Chuck Sheve. April 5, 2009 9,865' MW N/A Vis N/A Incl N/A R/D cement equipment, L/D cementing stinger. P/U and M/U Baker CIBP. TIH and set at 200'. POOH. TIH to 197', pump 14.5 bbls of 15.9 ppg permafrost cement. POOH, lay down drill pipe. RD BOP stack. Prepare for rig move. April 6, 2009 9,865' MW N/A Vis N/A Incl N/A RD and prepare to move rig to Deadhorse. N/D stack and cutoff wellhead. Rig released at midnight. FINAL REPORT 1629 W. ll Ave., Anchorage, AK 99501 907 - 258 -2969 1 • If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ULTRASTAR EXPLORATION, LLC iRexecy Sad�r"¢ Alexey Sachivichik Senior Drilling Engineer Fairweather E &P Services, Inc. cc: Jim Weeks — UltraStar 1629 W. ll Ave., Anchorage, AK 99501 907 - 258 -2969 • 11 r , L f (( j ` � f i -- � f r = j SARAH PALIN, GOVERNOR �T �t ALASKA OIL AND GAS / 333 W. 7th AVENUE, SUITE 100 CO1�SERVAiION COMMISSION 1 ANCHORAGE, ALASKA 99501.3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 James Weeks Managing Partner UltraStar Exploration LLC 1629 W 11th Ave Anchorage AK 99501 Re: Exploratory, Dewline #1 Sundry Number: 309 -122 Dear Mr. Weeks: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. 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). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, F , i Daniel T. Seamount, Jr. // 7 Chair DATED this (O day of April, 2009 Encl. ry)i5M5 41' Q R ( STATE OF ALASKA �Qp9 �'6 �9 ,O ` ik, ALASK OIL AND GAS CONSERVATION COMMIS IO4% APR 0 4A° APPLICATION FOR SUNDRY APPROVAL tasks ��; �► Gas Cons. Commission 20 AAC 25.280 Anchorage 1. Type of Request: Abandon El Suspend El Operational shutdown ❑ Perforate El Waiver ❑ Other ❑ Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate ❑ Time Extension ❑ Change approved program ❑ Pull Tubing ❑ Perforate New Pool ❑ Re -enter Suspended Well ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: UltraStar Exploration, LLC. Development ❑ Exploratory El 208 -195 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 1629 West 11th Avenue, Anchorage, AK, 99501 50- 029 - 23408 -00 , 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: N/A Spacing Exception Required? Yes ❑ No ❑ Dewline #1 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): ADL 389944 - 18.8 - Exploratory ' 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 9865' 9865' KB KB See Attached None Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 16' 80' 80' 5740 3080 Surface 2480' 9.625 2463' 2463' 6330 3810 Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): N/A N/A WA WA WA Packers and SSSV Type: N/A Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal ❑ 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory 0 - Development ❑ Service ❑ 15. Estimated Date for April 3, 2009 16. Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑ Plugged EI - Abandoned El- 17. Verbal Approval: Date: 3- Apr -09 WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: cCtcsA Tom Maunder 1 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Alexey Sachivichik (907) 575 7315 Printe• 1 - James We- s Title Managing Partner Signat 4 - / Phone (907) 258 2969 Date Or ' 1 . COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: `iY /`7 lad_ Plug Integrity ` – cc BOP Test 111 Mechanical Integrity Test El Location �Clearance /'a Other: C01 -C�°� —� C�+C" C — � p C n� 3 �� S> L� ..,C3 C..3. c) i1-- -, pq tA ir- p � j C CAK'C'G- S = .9 i"L\■`C� -00 Subsequent Form Required: t t �� " l APPROVED BY Approved by: /t COMMISSIONER THE COMMISSION Date: t /7 � Form 10 -403 Revised 66/g60Q r - . ' ! A l R - BFL APR 0 8 [QQ9 Submit in Duplic ( 7"/ 1. • • 4 / EMI °RATIOR', LLC RECEIVED April , 2009 AP , 2009 Mr. Dan Seamount, Chair Alaska ��� � 0 Con . �nmmission Alaska Oil and Gas Conservation Commission Anchorage 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application to Plug and Abandon UltraStar Exploration, LLC, Dewline #1 (PTD # 208 -195) Dear Mr. Seamount, UltraStar Exploration LLC proposes to plug and abandon its Dewline #1 well. It is intended to plug the well back to surface, install the required marker plate and bury the stub. Three cement plugs are planned, one from TD to 9,250', second one across the surface casing shoe and one surface plug as indicated on the enclosed wellbore schematic. The wireline and mud logs from this well have been reviewed with AOGCC staff for their concurrence on the cementing requirements for the open hole. The abandonment of Dewline #1 will be accomplished as indicated on the attached wellbore diagram and P &A procedure. If you have any questions or require additional information, please contact Alexey Sachivichik at 258 -3446. S incerely, TRASTAR . "LORATION, LLC. ames Weeks Managing Partner cc: Alexey Sachivichik Attachments 1 1 0 /:triStar :. � \ 8"\r zE! Dewline #1 Wmbor Schematic PROPOSED P&A < .. \ \ 16 conductor g 8 ' 2 Bridge Plug at 20E 9.8 ppg »4�4 hhole \ mud 1 / • r'. f . w \ 6 TOC at 328E MD r, / Cement retainer at 2,313' MD \.� ` \ ' /. ; \ \ 9-5/8",4 % D8$ BTC BOC at 2,563' MD 'k c \ \\ casing at %4 ±8"D 4 ) \ z / 2 2 \ 2 r \ § 2 / 8-1/2" hole ( $$ pp } § mud } \ \ ! # . : TOC at 9,250' MD \� & }� 14 ; t\ \ w . \\ \ \ . TD at 9,865' MD7VD • • • EYPioRAT10N, CLC UltraStar Exploration, LLC. Dewline #1 Plug and Abandonment Procedure General There are hydrocarbon- bearing zones required by the AOGCC to be covered with cement during abandonment of the open hole. The plugging and abandonment of this well will be accomplished by setting a cement plug from TD to 9,250', cement plug across the 9- 5/8" surface casing shoe at 2,463' MD and setting a surface cement plug. The AOGCC field inspector should be notified at least 24 hours before beginning this procedure and kept informed of the timing of all steps in order to allow him to witness those the Commission wishes confirmed. Open Hole Plug 1. RIH with mule shoe on drill pipe. Tag up at TD (9,865') and break circulation. 2. With the mule shoe at TD, pump 5 - 10 barrels of water ahead. 3. Pump 49 bbl cement slurry mixed as follows: 234 sacks Class G cement + 0.35% D167 + 0.3% D65 + 0.03% B155 + 0.2% D46 + 5.09 gal /sx water, working time 4:30 hours. (1.16 cf /sk, 15.8 ppg, assumes hole size is 9 ") 4. Pump 1 -2 bbls of water behind. Pull up to 9,200' and circulate out cement above that depth. 5. POH, L/D drill pipe, leaving 2,350' in derrick. Casing Shoe Plug 1. RIH with a 9 -5/8" cement retainer on wireline and set at 2,313'. POH and release wireline. 2. RIH with retainer stinger on drill pipe and sting into retainer. Weight test retainer then un -sting from it. • • 3. With the retainer running tool located just above the retainer, displace cement to the running tool then sting into the retainer and squeeze cement through it to achieve a plug across the casing shoe from the retainer to 100' below the shoe in 8 -1/2" open hole as follows: Pump 15 bbl Spacer. Follow with 25 bbls. (142 sx) Class G Cement+ 0.3 %D65 + 0.35 %D167 + 0.45 %S002 + 0.2 %D46. Follow with 15 bbls Spacer 4. Displace 23 bbls (112 sx) of cement through the retainer, un -sting from the retainer and dump the remaining 2 bbls on top. 5. POH five stands, CBU and P011, L/D drill pipe, leaving 200' in the derrick.. 6. Pressure test the 9 -5/8" casing to 1,500 psi for 30 minutes. Record test on chart. Surface Plug 7. P/U a 9 -5/8" bridge plug and RIH to 200' RKB. Set the bridge plug, weight -test it and release from it. Mix and pump 15.2 bbls permafrost cement to fill the 9 -5/8" casing from the bridge plug to the surface. Cement to be permafrost Type L Lead Slurry mixed as: 20 sx of permafrost Type L + 19 gal /sx fresh water Surface Abandonment 8. Rinse out the wellhead and BOP stack, clean pits and release the rig. 9. After the rig has been moved off location, use a backhoe to remove the well cellar and cement in the bottom of it. 10. Cut off the wellhead and send it back to Vetco Gray to be refurbished. 11. Cut off all casing strings at least 5' below tundra level. Ensure there is cement at the surface in the 9 -5/8" x 13 -3/8" annulus and in the 9 -5/8" casing. AOGCC inspector to verify. . • 12. Weld onto the 13 -3/8" conductor a 1 A" thick, 18" diameter well identification marker with the following information bead - welded onto it: UltraStar Exploration, LLC PTD No. 208 -195 Dewline #1 API # 50- 029 - 23408 -00 AOGCC inspector to witness installation of the marker plate. 13. Bury the well marker and fill the cellar hole with fill material saved from the original excavation of the cellar and supplement it with additional gravel obtained from a mine site in the Prudhoe Field. The pile over the well marker should be mounded at least 5' above pad level to compensate for settling as the ice in it melts. 14. Clean up the drilling location and demobilize all P &A equipment, materials and refuse. • 411, Page 1 of 1 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Friday, April 03, 2009 10:41 AM To: 'Bill Penrose' Cc: Jim Weeks; Alexey Sachivichik; FepsiCoMan Subject: RE: P &A of the UltraStar Dewline #1 (208 -195) Bill and Alex, Thanks for providing the information. I confirm our meeting discussing the planned operations earlier this morning. I apprised Commissioner Foerster of your plans and she gave her oral approval for you to proceed. I will look forward to the sundry. 1. It will not be necessary to tag the deep plug provided it is placed without any fluid loss. If fluid loss is experienced, then it will be necessary to tag the plug. 2. A casing pressure test to a minimum of 1500 psi (20 AAC 25.112(g)(2) should be planned after the cement is in place. I am copying the Inspectors with this message. Your Mr. Anthony has already been in touch with them. Call or message with any questions. Tom Maunder, PE AOGCC From: Bill Penrose [mailto:bill @fairweather.com] Sent: Friday, April 03, 2009 10:26 AM To: Maunder, Thomas E (DOA) Cc: Jim Weeks; Alexey Sachivichik; FepsiCoMan Subject: P&A of the UltraStar Dewline #1 Tom, Per our meeting with you this morning, we will immediately commence the plugging and abandonment of the subject well. The abandonment will consist of: 1. A continuous cement plug from TD to 9,250' MD, 2. A cement plug across the surface casing shoe extending from 150' above the shoe to 100' below it (this plug will be pumped through a cement retainer set 150' above the shoe, and 3. A surface cement plug extending from a bridge plug set at 200' RKB to the surface. 4. After rig release and demobilization, the well will be cut off 4' below tundra level and an identification plate welded on. The AOGCC North Slope inspector will be notified in advance of each cementing operation and the final cut -off described in Step 4 above. All intervals between the cement plugs will contain 9.7 ppg mud, the heaviest weight mud used during the drilling of this well. We will deliver a written Sundry Application to the Commission today which describes in detail this P &A. Regards, Veil Parma Vice President / Drilling Manager Fairweather E &P Services, Inc. 4/6/2009 • • 4 41 ExPLORAT,o1v. LLC April 3, 2009 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations UltraStar Exploration, LLC: Dewline #1 (PTD # 208 -195) Dear Mr. Seamount, This is a report of UltraStar Exploration's well operations on the Dewline #1 for the period March 27 through April 2, 2009, inclusive. March 27, 2009 7,761' MW 9.7 Vis 51 Incl 1.01 deg Drill to 7761'. Trip out to test BOP's March 28, 2009 7,761' MW 9.6 Vis 48 Incl 1.01 deg POOH, L/D BHA #2, test BOP rams, TIW, HCR and all choke manifold valves to 250psi low /5,000 psi high. Pressure test Hydril to 250 psi low /3,000 psi high. AOGCC's witnessing the BOP test was waived by Bob Noble. March 29, 2009 8,021' MW 9.6 Vis 47 Incl 0.99 deg Completed BOP test. TIH with BHA #3. Drill from 7,761' to 8,021'. March 30, 2009 8,885' MW 9.7 Vis 48 Incl 1.05 deg Drill from 8,021' to 8,885'. Wiper trip to 7,770'. TIH and tag bottom. March 31, 2009 9,565' MW 9.7 Vis 45 Incl 0.94 deg Drill from 8,885' to 9,565'. April 1, 2009 9,865' MW 9.2 Vis 46 Incl 0.94 deg Drill to TD at 9,865', short trip. Trip out of hole. 1629 W. 11 Ave., Anchorage, AK 99501 907 - 258 -2969 • i April 2, 2009 9,865' MW 9.8 Vis 46 Inc10.81 deg Trip out of hole. LD BHA #3. R/U Schlumberger Wireline. Run Quad Combo log from TD to 2,463'. RD Wireline. LD HWDP. If you have any questions or require additional information, please contact me at 258 - 3446. Sincerely, For ULTRASTAR EXPLORATION, LLC iiterey s Alexey Sachivichik Senior Drilling Engineer Fairweather E &P Services, Inc. cc: Jim Weeks — UltraStar 1629 W. 11 Ave., Anchorage, AK 99501 907 - 258 -2969 Page 1 of 1 Maunder, Thomas E (DOA) From: Bill Penrose [bill@fairweather.com] Sent: Monday, March 30, 2009 9:43 AM To: Regg, James B (DOA) Cc: Maunder, Thomas E (DOA); Alexey Sachivichik o- Subject: BOP Test - UltraStar Dewline #1 Attachments: BOP Test 3-29-09.xls Jim, Here's the 3-29-09 BOP test report for the subject well. Regards, Veil Paprode Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 3/31/2009 • • STATE OF ALASKA 2/15/07 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: jim reqq(@,admin.state.ak.us aogcc prudhoe bay(cadmin.state.ak.us bob fleckenstein @..admin.state.ak.us Contractor: DoyonAkita Rig No.: 2 DATE: 3- 28/29 -09 Rig Rep.: Ingram /Lupton Rig Phone: 907 - 770 -6302 Rig Fax: 907 - 770 -6324 Operator: Ultra Star Op. Phone: 907 - 770 -6289 Op. Fax: 907 - 770 -6314 Rep.: Anthony /Drollinger Field /Unit & Well No.: Dew Line # 1 PTD # 208 -195 Operation: Drlg: YES Workover: Explor.: X Test: Initial: Weekly: X Bi- Weekly Test Pressure: Rams: 250/5000 Annular: 250/3000 Valves: 250/5000 TEST DATA MISC. INSPECTIONS: FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly P Housekeeping: P Drl. Rig P Lower Kelly P PTD On Location P Hazard Sec. P Ball Type P Standing Order Posted P Inside BOP P BOP STACK: Quantity Size Test Result CHOKE MANIFOLD: Annular Preventer 1 P Quantity Test Result Pipe Rams 1 P No. Valves 14 P Lower Pipe Rams 1 P Manual Chokes 1 NT Blind Rams 1 P Hydraulic Chokes 1 NT Choke Ln. Valves 2 P HCR Valves 2 P ACCUMULATOR SYSTEM: Kill Line Valves 1 P Time /Pressure Test Result Check Valve 0 NA System Pressure 2900 P Pressure After Closure 1400 P MUD SYSTEM: Visual Test Alarm Test 200 psi Attained 13 SEC. P Trip Tank P P Full Pressure Attained 1 MIN 40SEC P Pit Level Indicators P P Blind Switch Covers: All stations P Flow Indicator P P Nitgn. Bottles (avg): 6(x,2100 Meth Gas Detector P P H2S Gas Detector P P Test Results Number of Failures: 0 Test Time: 5.5 Hours Components tested All Repair or replacement of equipment will be made within 0 days. Notify the North Slope Inspector 659 -3607, follow with written confirmation to Superviser at: iim regQ(c,admin.state.ak.us Remarks: Test went very well 24 HOUR NOTICE GIVEN YES x NO Waived By B.Noble Date 03/27/09 Time 6 A.M. Witness Lupton Test start 20:30 PM Finish 2 A.M. BOP Test (for rigs) BFL 02/15/07 BOP Test 3- 29- 09.xls • s EXPLORATION, LLC March 27, 2009 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations UltraStar Exploration, LLC: Dewline #1 (PTD # 208 -195) Dear Mr. Seamount, This is a report of UltraStar Exploration's well operations on the Dewline #1 for the period March 20 through March 26, 2009, inclusive. March 20, 2009 2525' MW 9.0 Vis 44 Inc10.71 deg Nipple up and test BOP' s. Test annular preventer to 250 psi low / 3000 psi high; upper pipe rams, HCR, choke and kill, dart valve to 250 psi low / 5000 psi high. March 21, 2009 2525' MW 9.0 Vis 44 Inc10.71 deg Complete BOP test. Test witnessed by AOGCC's John Crisp and Bob Noble. RIH w/ drill pipe out of derrick, inspecting for galled threads. Lay out damaged pipe. March 22, 2009 2525' MW 9.0 Vis 44 Inc10.71 deg PU drill pipe, make up stands, stand back in derrick. Make up BHA #2, trip in hole. March 23, 2009 3029' MW 9.0 Vis 42 Incl 1.1 deg Test 9 -5/8" casing to 3,000 psi for 30 minutes. Drill out shoe track, rat hole and 20' of new hole to 2,545'. POH into shoe, displace spud mud from hole w/ new polymer mud. Perform LOT to 13.2 ppg EMW. Drill 8.5" hole to 3,029'. March 24, 2009 5018' MW 9.3 Vis 48 Inc10.5 deg Drilled 8.5" hole from 3,029' to 5,018'. Trip out for wiper run. Hole sticky. 1629 W. 11 Ave., Anchorage, AK 99501 907 - 258 -2969 • • March 25, 2009 5830' MW 9.5 Vis 51 Incl 0.35 deg MU top drive and backream hole to casing shoe. TIH and drill to 5,830'. March 26, 2009 6730' MW 9.6 Vis 51 Incl 1.04 deg Drill to 6,022'. Short trip to 5,000'. Drill ahead to 6,730'. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ULTRASTAR EXPLORATION, LLC Alexey Sachivichik Senior Drilling Engineer Fairweather E &P Services, Inc. cc: Jim Weeks — UltraStar 1629 W. 11 Ave., Anchorage, AK 99501 907 - 258 -2969 • • 0 t EXPLORATION, LLC March 20, 2009 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 a �` ` Anchorage, Alaska 99501 RE: Weekly Report of Operations UltraStar Exploration, LLC: Dewline #1 (PTD # 208 -195) Dear Mr. Seamount, This is a report of UltraStar Exploration's well operations on the Dewline #1 for the period March 13 through March 19, 2009, inclusive. March 13, 2009 2515' MW 9.3 Vis 188 Inc10.71 deg POOH from 2515' to 1480'. Stuck BHA above jars. M/U surface fishing jars and jar BHA loose (jarring down). Circulate and work pipe, back ream out of hole to 1,290'. March 14, 2009 2515' MW 9.3 Vis 205 Inc10.71 deg Back ream out of hole to 195'. RIH and condition hole. March 15, 2009 2525' MW 9.3 Vis 165 Inc10.71 deg Continue conditioning hole. Drill 10' of new hole. POOH. R/U and run 9 -5/8" casing. March 16, 2009 2525' MW 9.3 Vis 168 Inc10.71 deg Run 9 -5/8 ", 40 #, L -80, BTC casing to 1640' (40jts.) where wellbore became sticky. Run 9 -5/8" casing while circulating to TD. Ran total of 60 joints of casing. M/U Vetco Gray hanger and landing joint. Landed with shoe at 2,463' RKB. Circulate and condition mud for cement job. March 17, 2009 2525' MW 9.3 Vis 168 Inc10.71 deg Test lines to 3,000 psi. Pump 75 bbls 10.4 ppg. Mud Push spacer, 385 bbls lead cmt at 1629 W. 11 Ave., Anchorage, AK 99501 907 - 258 -2969 • • 10.7 ppg + 55 bbls tail cmt at 15.8# ppg, 10 bbls water chaser. Displaced with mud, lost returns 43 bbls into displacement. Bumped plug, N/D diverter line, pitcher nipple, diverter valve, Hydril, diverter tee, spacer spool. March 18, 2009 2525' MW 9.1 Vis 58 Inc10.71 deg Prep conductor for annulus cementing stinger. RIH with 1 -1/4" tbg, tag at 610'. Break circ, begin cementing, lost returns. POOH 7 jts, regain circ, RIH to 610'. Pump 250 bbls permafrost cement. Good circ throughout but no cement returns. Job witnessed by AOGCC' s lolfuRrimakti. POOH and WOC while preparing BOPE for N /U. Ch���Schc�� March 19, 2009 2525' MW 9.1 Vis 58 Incl 0.71 deg RIH with 1 -1/4" CS Hydril string, tag up at 464' RKB. Pump 428 bbls of 11.8 ppg permafrost cement, received cement at surface. Job witnessed by AOGCC's Bob Noble. POOH and L/D cement stinger. N/U Vetco Gray MB -20 Multibowl wellhead and test to 5,000 psi for 10 min. — good test. Start N/U BOP' s. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ULTRASTAR EXPLORATION, LLC Zelt Sa Alexey Sachivichik Senior Drilling Engineer Fairweather E &P Services, Inc. cc: Jim Weeks — UltraStar 1629 W. 11 Ave., Anchorage, AK 99501 907 - 258 -2969 • • MEMORANDUM State of Alaska 2� Alaska Oil and Gas Conservation Commission TO: Jim Regg j 2 .4 4� �I DATE: March 17 -19, 2009 P. I. Supervisor FROM: Bob Noble SUBJECT: Cement to Surface Petroleum Inspector Dewline #1 DoyonAkita 2 PTD 208 -195 March 17, 2009: I received a call from Larry Meyers (UltraStar) telling me that they failed to get cement to surface on their surface casing cement job for Dewline #1. He said details were being discussed with AOGCC in town. Larry told me that they had 9 5/8" surface pipe and 2463 feet TD. They had pumped 386 barrels of 10.7# lead and 49 barrels of 15.8# tail cement for primary cement job. They had circulation through out the surface job but failed to get cement to surface. March 18, 2009: Chuck Scheve witnessed the first top job. Cement was tagged at 600 feet. They pumped 250 barrels of 11# cement and failed to get cement to surface. March 19, 2009: I witnessed the second top job. Cement was tagged at 464 feet. Pumped 250 barrels of 10.8# and they still didn't get cement to surface. They got more cement and at a total of 428 barrels of 10.8# cement they got cement to surface. They pumped an additional 17 barrels after getting cement to surface for a total of 445 barrels pumped on the second attempt to get cement to surface. It looked like good cement to me and the sample weighed 10.8 #. There was a total 695 barrels of cement pumped in the two top jobs. • • Page 1 of 41 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Tuesday, March 17, 2009 3:51 PM To: Alexey Sachivichik; Bill Penrose Cc: FepsiCoMan; DOA AOGCC Prudhoe Bay Subject: RE: Top Cement Job for UltraStar Dewline #1 Alex, et al, Running the spaghetti string as deep as possible and circulating cement as you plan is an acceptable plan forward. Please have your Company Man keep the Inspector informed so that he may witness if able. Call or message with any questions. Tom Maunder, PE AOGCC From: Alexey Sachivichik [ mailto: alexey .sachivichik ©fairweather.com] Sent: Tuesday, March 17, 2009 3:47 PM To: Maunder, Thomas E (DOA); Bill Penrose Cc: FepsiCoMan Subject: RE: Top Cement Job for UltraStar Dewline #1 Sorry Tom, Here is Volumetric: Top of Cement Calculation (Volumetric) Based on losses starting 42.7bbls into displacement, calculated the top of lead in the annulus is at approximately 1,000'. Volumes inside 9 -5/8" csg are 42.7 bbls of mud (564'), 53 bbls of tail (699'), 90 bbls of lead (1,198'). Volumes outside 9 -5/8" csg are: from the shoe 295 bbls of lead (1,511'), 70bbls of Mud Push (359'), 120 bbl of mud (641'). On the rig they N/D Diverter and N/U BOP and ready to run spaghetti string and top cement job. Regards ,4Qexec1 s ad i d 1l Senior Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 office: 907 - 258 -3446 cell: 907 575 7315 3/27/2009 • • Page 1 of 1 Maunder, Thomas E (DOA) From: Bill Penrose [bill @fairweather.com] Sent: Tuesday, March 17, 2009 2:18 PM To: Maunder, Thomas E (DOA) Cc: Alexey Sachivichik; FepsiCoMan Subject: Top Cement Job for UltraStar Dewline #1 Attachments: Plot Dewline 1 Surface 03- 17- 09.pdf; Tabular Report Dewline 1 Surface 03- 17- 09.pdf; UltraStar TOC Hydrostatic Calculation.doc; UltraStar TOC Volumetric Calculation.doc Tom, As we discussed earlier today, the surface casing in the Dewline #1 was cemented in place without cement reaching the surface due to circulation being lost while pumping. The top of the cement is calculated at either +1,000' or ± 374', depending on whether you use volumetrics or hydrostatics to calculate it. I've attached the cementer's records as well as TOC calculations using both methods. We would like to use a string of 1" or 1 -1/4" tubing to set a top cement plug in the 16" x 9 -5/8" annulus and continue drilling operations. The plug would be as long as practicable, depending on how far down the annulus we can get the spaghetti string. Please let me know what you think. Thanks and regards, Ecie Parma Vice President / Drilling Manager Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907 - 258 -3446 3/27/2009 • CemCAT v1.0 Schlumberger Cementing Job Report Well Dewline # 1 Client FAIRWEATHER E P Field GPBA SIR No. 2201084144 Engineer Bill Wilson Job Type 9 5/8 Surface Casing Country United States Job Date 03 -16 -2009 Time Pressure Rate Density Messages 03/170009 00 18 37 00:18:37 - Start Job Prime Pumps 00:34:00 PJSM 00:49:00 ti Start Pumping Water End Water [ Stall DUMD check trips _ Pressure Test Lines Reset Total, Vol = 5.08 bbl --_ 01:04:00 01:19:00 End Mud Push II Drop Bottom Plug Reset Total, Vol = 76.63 bbl Batch up tub of lead Start Lead Cement 01:34:00 • Plug gone Switch to silo Slurry temp @ 70 degrees Mud Push @ shoe 01:49:00 Land bottom plug 189 bbls Lead cement @ shoe 02:04:00 02:19:00 I. End lead slurry, 385 bbls 3 Reset Total, Vol = 384.93 bbl Start Tail Slurry 02:34:00 C End Tail Slurry, 53 bbls 02:49:00 Y� re Reset Total, Vol = 53.11 bbl Drop Top Plug Start Displacement Plug Went r Rig Pumps To Displace Switch to mud - Lost returns 03:04:00 I Returns coming back 100 bbls mud gone out of disp tanks 03:19:00 L1 1 03:34:00 1 Bump Plug /Open St.Collar — Stop Pumping Reset Total, Vol = 183.4 bbl 03:49:00 Pump shut down still showing returns Cement in place @ 03:40 03:56:28 I Bleed off check float's End Job Stopped Acquisition hh: mm:ss 0.00 1000 2000 3000 9000 5000 0.00 2.0 90 6.0 8.0 10.0 5.0 10.0 15.0 20.0 25.0 03/17/2009 0336 PSI B/M - LB /G 03/17/2009 03:56:15 • Top of Cement Calculation (Hydrostatic) Calculations are based on assumptions that lost fluid was tail slurry, lead slurry column was as planned 1,981' and the final pumping pressure was 1,139 psi. Below are the tops of cement: P= Ht +HI +Hm Where Ht — hydrostatic pressure for tail cement Hl — Hydrostatic pressure for lead cement Hm — Hydrostatic pressure for mud. HI = 1981' x 10.7 ppg x 0.052 = 999 psi Ht = 1139 psi — 999 psi = 140 psi. Lt = 140 psi / 15.8 ppg x 0.052 = 170' Where Lt = Length of the tail cement column. Depth cement fell = TD — 1981' — 170' = 374' (assuming an empty space on top of cement). Where TD — 2525', 1981' — planned length of lead cement. • Top of Cement Calculation (Volumetric) Based on losses starting 42.7bbls into displacement, calculated the top of lead in the annulus is at approximately 1,000'. Volumes inside 9 -5/8" csg are 42.7 bbls of mud (564'), 53 bbls of tail (699'), 90 bbls of lead (1,198'). Volumes outside 9 -5/8" csg are: from the shoe 295 bbls of lead (1,511'), 70bbls of Mud Push (359'), 120 bbl of mud (641'). • • w w Ex!'ioi 7/0;A, [LC March 13, 2009 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations UltraStar Exploration, LLC: Dewline #1 (PTD # 208 -195) Dear Mr. Seamount, This is a report of UltraStar Exploration's well operations on the Dewline #1 for the period March 6 through March 12, 2009, inclusive. March 6, 2009 80' MW N/A Vis N/A Incl 0.00 deg Complete N/U lines to gas buster. Test electrical components of pit system. Cut off 16" conductor and N/U Vetco -Gray starting head. Pressure tested to 500 psi. March 7, 2009 80' MW N/A Vis N/A Incl 0.00 deg Complete N/U diverter stack. P/U and N/U diverter knife valve and 16" blue line. Circulate water through steel pits. Continue N/U Totco monitoring system. Installed and tested control lines for remote accumulator operation. �n March 8, 2009 80' MW N/A Vis N/A Incl 0.00 deg P/U and M/U 4" drill pipe into stands. P/U safety valve on single of drill pipe to test diverter stack. Function test diverter stack. Working on top drive electrical /computer problems. March 9, 2009 80' MW N/A Vis N/A Incl 0.00 deg Continue to repair top drive computer system and Totco monitoring system. P/U and M/U BHA #1 components and TIH. Tag @98' March 10, 2009 595' MW 8.9 ppg Vis 300 Incl 1.61 deg Working on Totco monitoring system. Drill 12 -1/4" hole to 595' 1629 W. 11 Ave., Anchorage, AK 99501 907 - 258 -2969 March 11, 2009 1219' MW 9.2 ppg Vis 340 Incl 1.37 deg Drill 12-1/4" hole from 595' to 1219' and fine tune mud system. March 12, 2009 2515' MW 9.4 ppg Vis 160 Incl 0.81 deg Drill 12 -1/4" hole from 1219' to 2515'. Startwiper trip. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ULTRASTAR EXPLORATION, LLC Viee Parma Bill Penrose Vice President / Drilling Manager Fairweather E &P Services, Inc. cc: Jim Weeks — UltraStar 1629 W. 11 Ave., Anchorage, AK 99501 907 - 258 -2969 • • MEMORANDUM State of Alaska 2/1/2008 Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: 3/9/2009 P.I. Supervisor SUBJECT: Diverter Function Test Doyon Akita 2 Ultrastar Dewline #1 FROM: Lou Grimaldi 2080195 Petroleum Inspector Exploratory Operator Rep.: Anthony Op. phone: 771 -1080 Contractor Rep.: Lupton Rig phone: MISC. INSPECTIONS: ACCUMULATOR SYSTEM: F/P/FP Location Gen.: p Well Sign: p Systems Pressure: 3000 psig P Housekeeping: p (Gen.) Drig. Rig: p Pressure After Closure: 1650 psig P Reserve Pit: NA Flare Pit: NA 200 psi Recharge Time: :17 min:sec P Full Recharge Time: 1:22 min:sec P DIVERTER SYSTEM INSPECTION: Nitrogen Bottles: 6 x 2250 avg P Diverter Size: 21 1/4 in. Vent Line(s) Size: 16 in. Vent Line(s) Length: 167 ft. MUD SYSTEM INSPECTION: Light Alarm Line(s) Bifurcated: No Trip Tank: P P Line(s) Down Wind: Yes Mud Pits: P P Line(s) Anchored: P Flow Monitor: P P Turns Targeted / Long Radius: NA Divert Valve(s) Full Opening: P GAS DETECTORS: Light Alarm Valve(s) Auto & Simultaneous: P Methane NT ' NT Annular Closed Time: :23 Sec Hydrogen Sulfide: NT NT Knife Valve Open Time: :05 Sec North 111111 Wind Camp Test's Details Rig well prepared for function test when 1 arrived. Diverter functioned property and vent line laid out and secured well. PVT and gas detectors functioning property. Electrician hooking up operational gas detectors to Gai- Tronics for audible alarms, asked if he could stay on that project. 1 retumed next day and tested all detectors with good results. PVT system checked with excellent results, closest to tape strap I've seen. Total Test Time: 4 Number of failures: None Attachments: None cc: Diverter Test (for inspectors) BFL 2 -1-08 Div Doyon Akita 2 Dewline -1 3 -09 -09 LG.xls . • 4 ' (ExPtowiTtotti, LLC March 6, 2009 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations UltraStar Exploration, LLC: Dewline #1 (PTD # 208 -195) Dear Mr. Seamount, This is a report of UltraStar Exploration's well operations on the Dewline #1 for the period February 27 through March 5, 2009, inclusive. February 27, 2009 80' MW N/A Vis N/A Incl 0.00 deg R/U shop and camp. Prep rig components. Install cellar, drill mouse hole. Set and cement 80' of 16" conductor. RDMO conductor drlg equip. Clean and level pad around cellar. WOW to lay rig liner. February 28, 2009 80' MW N/A Vis N/A Inc10.00 deg WOW. Lay rig liner and rig mats. Lay fuel lines. Move in and set rig substructure. Move in and set derrick. Position other rig components. March 1, 2009 80' MW N/A Vis N/A Inc10.00 deg WOW. Crews performed "inside" work as possible, out of weather. March 2, 2009 80' MW N/A Vis N/A Inc10.00 deg WOW. Rig up rig components. Fire boilers, run electrical, fuel and steam lines. Raise derrick. March 3, 2009 80' MW N/A Vis N/A Inc10.00 deg Continue rig up. Most motors started. Install top drive and extend derrick. Set in rock washers. 1629 W. 11 Ave., Anchorage, AK 99501 907 -258 -2969 • • March 4, 2009 80' MW N/A Vis N/A Incl 0.00 deg Continue rig up. Install rig monitoring system. Set pipe shed. March 5, 2009 80' MW N/A Vis N/A Incl 0.00 deg Work on mud pit suction, discharge and electrical lines. Install rotary table driveshaft, work on top drive. P/U and R/U bails, elevators, tongs, etc. R/U gas buster lines. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ULTRASTAR EXPLORATION, LLC Fell Peatode Bill Penrose Vice President / Drilling Manager Fairweather E &P Services, Inc. cc: Jim Weeks — U1traStar 1629 W. 11 Ave., Anchorage, AK 99501 907 - 258 -2969 • 110ARAH PALIN, GOVERNOR DEPARTMENT OF NATURAL RESOURCES 550 WEST 7 AVENUE, SUITE 1100 ANCHORAGE, ALASKA 99501 -3560 O� \ ci DIVISION OF OIL & GAS PHONE: (907) 269 -8800 v FAX: (907) 269 -8938 _ qt <fl r-,_ MAR 0 2 9(109 STATE OF ALASKA NOTICE OF APPLICATION FOR APPROVAL OF Hake Oil Gas C4sr" s Co' mmessla" THE DEWLINE UNIT AncharrlY The Department of Natural Resources (the Department) gives notice of an application to form the Dewline Unit. 11 AAC 83.311. The proposed Dewline Unit is located on the North Slope of Alaska adjacent to the Prudhoe Bay Unit. The Unit Operator, UltraStar Exploration LLC (UltraStar), whose address is 3111 C Street, Suite 500, Anchorage, Alaska 99503, filed an application with the Department to form the Dewline Unit. The proposed Dewline Unit covers approximately 3,253.56.56 acres within three State of Alaska leases, (ADL 389944, ADL 389943 and ADL 390419) which include the following lands: Township 12 North, Range 14 East, Umiat Meridian, Section 17: Surveyed, That portion of US Survey 4044, Lot 2, lying within the section; Section 18: Surveyed, That portion of US Survey 4044, Lots 1 and 2, lying within the section; Section 19: Surveyed, That portion of US Survey 4044, Lot 2, lying within the section; Section 20 Surveyed, That portion of US Survey 4044, Lot 2, lying within the section; Township 12 North, Range 14 East, Umiat Meridian, Section 7: Surveyed, That portion of US Survey 4044, Lots 1 and 2, lying within the section; Section 8: Surveyed, That portion of US Survey 4044, Lot 2, lying within the section; Township 12 North, Range 14 East, Umiat Meridian, Section 5: Unsurveyed, All tide and submerged lands; Section 6: Unsurveyed, All tide and submerged lands; Section 7: Unsurveyed, All tide and submerged lands; Section 8: Unsurveyed, All tide and submerged lands; Township 12 North, Range 14 East, Tract B, Umiat Meridian, Section 7: Unsurveyed, All uplands excluding US Survey 4044, Lots 1 and 2; Section 8: Unsurveyed, All uplands excluding US Survey 4044, Lot 2; Special Surveys US Survey 9137, That portion located in Sections 5 and 6 You may review the non - confidential portions of the application at the Division of Oil and Gas, 550 West 7 Avenue, Suite 1100, Anchorage, Alaska. Copies of the non - confidential portions of the application are available by writing to the Division of Oil and Gas, Units Section, 550 West 7 Avenue, Suite 1100, Anchorage, Alaska 99501 -3510. The department charges a photocopy fee of $.25 per sheet 11 AAC 05.010(a)(16)(C). "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." • Notice g,pplication of the Dewline Unit 2/27/09 Page 2 of 2 Any person may file written comment on the application. Comments must be received by 4:30 p.m., Monday, April 6, 2009, and should be mailed to the Division of Oil and Gas, attention Cammy Taylor, Unit Manager, at the above address. The Department will consider all timely written comments and evaluate the application based on the criteria in 11 AAC 83.303, 11 AAC 83.351 and 11 AAC83.356. Within 60 days after the close of the comment period, the Department will issue a written decision to approve or deny the unit expansion application. This notice also appears on the State of Alaska website at http: / /www.dnr.state.ak.us. - a-2-7- 69? Kevin R. Banks Date Director Division of Oil and Gas • • ;:,, 0 0 ,\ITKPIORATION, ILC February 27, 2009 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations UltraStar Exploration, LLC: Dewline #1 (PTD # 208 - 195) Dear Mr. Seamount, This is a report of UltraStar Exploration's well operations on the Dewline #1 for the period February 23 through February 26, 2009, inclusive. February 23, 2009 0' MW N/A Vis N/A Incl 0.00 deg Finish and accept ice road and pad. Move in matting boards, berming supplies and camp. Set and berm camp, hook up power and heat. Commence bringing rig components to location. February 24, 2009 0' MW N/A Vis N/A Incl 0.00 deg Continue to move in rig components. Rig up rig mechanical shop. Commission fire alarms, water and sewage systems in camp. Rig up comms. Rig up containment area around camp and shop. February 25, 2009 0' MW N/A Vis N/A Incl 0.00 deg Rig crew S/D for night, CH continue hauling in and rigging up rig components. Re- survey conductor location and dig conductor hole to 40'. S/D for night. February 26, 2009 0' MW N/A Vis N/A Incl 0.00 deg Rig crew S/D for night, CH continue hauling in rig components. Finish digging conductor hole to 80'. S/D due to winds too high to P/U 80' conductor. Crews broke tour. Finish R/U shop and camp. Prep rig. a W. " �' - - _ - —2 `3 4110 • If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ULTRASTAR EXPLORATION, LLC Ea Pee 11744e Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. cc: Jim Weeks — Ultra Star 1629 W. 11 Ave., Archoraqe, AK 99501 907-258-2969 • • Page l of l Maunder, Thomas E (DOA) From: Colombie, Jody J (DOA) Sent: Monday, February 23, 2009 9:27 AM To: Maunder, Thomas E (DOA) Subject: FW: Dewline Ice Road / Pad Report Attachments: Ice_Road_A(1).M._Report #13.xls fyi From: Jim Weeks [ mailto: jweeks @ultrastarexploration.com] Sent: Monday, February 23, 2009 8:09 AM To: Taylor, Cammy 0 (DNR) Cc: Colombie, Jody 3 (DOA); Weaver, Aaron A (DNR); robert.tisserand @alaska.cov; 'Bob Britch' Subject: FW: Dewline Ice Road / Pad Report Cammy, As you can see from the attached report from Fairweather, the ice road and drill pad are complete, and the rig components and camp are being mobilized from Deadhorse. Hopefully, we'll receive a final Consistency Determination LO /NS 008 -010 from the Division tomorrow, Tuesday, Feb. 24, to allow the cellar to be dug and the conductor set, as well as the approval of the Oil Spill Contingency Plan from the ADEC. I sincerely appreciate the diligence, thoroughness and professionalism that everyone involved with this project has exhibited. It looks like it may actually get drilled. Let's all keep our fingers crossed that the geology cooperates. For competitive and strategic reasons, this well will be drilled as a tight hole. I will advise you when it has been spudded, then go dark. May the Chinese Year of the Ox bring all of us health, happiness and good fortune. Thanks again. Jim 907 - 258 -2969 From: Bill Penrose [mailto:bill @fairweather.com] Sent: Monday, February 23, 2009 7:44 AM To: Jim Weeks; Carol Lindsey; JRWINTHER @aol.com Cc: Brian Brigandi; Alexey Sachivichik; tdriskill @doyondrilling.com; Amjad Chaudhry Subject: Dewline Ice Road / Pad Report Ice road and pad are complete. Mobilizing rig and camp now. Fill Pecvlaae Vice President / Drilling Manager Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907 - 258 -3446 3/27/2009 Sheet13 Fairweather E&P Services, Inc. 11111111 _1 Ice Roads and Pads Morning Report Report Date: 2/23/2009 Report No. 13 Project Name: UltraStar Exploration LLC. Dewline #11 AFE No.: ' UP-0210-0501 I Contractor: I Nanuq Current Weather: Temp: - Wind:1 E18 Chill Factor: Precip: Visibility: 1 10 Mi Fuel Usage: Past 24 hrs: Cumulative: 1 11 Progress to Date: !Road 100% complete, pad 100% complete. Nanuq has been released. Mobilization of rig components to location has commenced. 1 Activities past 24 hrs: Haul water and chips to continue to improve road. CH2MHill started hauling mats and shop to during night. Camp has arrived at Deadhorse and will be hauled to location today. Note: This is the final ice road report. Daily drilling reports will commence tomorrow. Accidents/Spills: None reported Water Usage (Bbls): Cumulative Cumulative Cumulative Remaining Water Used Water Used Water Used Water Used Permitted Water Source (past 24 hrs) (This Project) (Other Users) (All Users) (Monthly) Lake Coleen 185,640 2,118,480 4,626,520 Lake 18 40,950 441,000 41,169,00 Page 1 o • L t {{ SARAH PALIN, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 James Weeks FAX (907) 276 -7542 Managing Partner UltraStar Exploration LLC 1629 W. 11th Ave Anchorage AK 99501 Re: Exploratory, Dewline #1 UltraStar Exploration LLC Permit No: 208 -195 Surface Location: 229' FSL, 493' FEL, SEC. 18, T12N, R14E, UM Bottomhole Location: 229' FSL, 493' FEL, SEC. 18, T12N, R14E, UM Dear Mr. Weeks: 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). Sincerely, �- Daniel T. Seamount, Jr. a / Chair DATED this/0 U day of February, 2009 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA - • == _. a' /.7/"1' �� AOA OIL AND GAS CONSERVATION COMMI.N k ' � ( PERMIT TO DRILL 20 AAC 25.005 1a. Type of Work: 1b. Curr Well C Exploratory Development Oil 11 ic. Specify if well is�proposedfpr; Drill El Redrill ❑ Stratigraphic Test j Service 0 Development Gas ❑ Coalbed Methane d Gas Hydrates 0 Re -entry 0 Multiple Zone 0 Single Zone 0 Shale Gas 0 2. Operator Name: 5. Bond: Blanket Single Well 1771 11. Well Name and Number: UltraStar Eploration LLC Dond -Na- 4499 Dewline #1 3. Address: 6. Proposed Depth: • 12. Field /Pool(s): 1629 West 11th Avenue, Anchorage, AK, 99501 MD: 900' TVD: 9900' Exploratory \O 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 229' FSL, 493' FEL, Sec 18, T 12N, R 14 E, UM ADL 389944 4 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 229' FSL, 493' FEL, Sec 18, T 12N, R 14 E, UM N/A 2/28/2009 Total Depth: 9. Acres in Property: 14. Distance to Nearest 9800' 229' FSL, 493' FEL, Sec 18, T 12N, R 14 E, UM 817 Property: 1025' /" 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface: x- 664038 y 5993127 Zone- 4 (Height above GL): 18.8 feet 6747'/Pt. Storkersen #1 16. Deviated wells: Kickoff depth: N/A feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) 4 ` 1 Maximum Hole Angle: 0 degrees Downhole:, si Surface: (3 psi L AVA LA C Ev i 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) Driven 16" 84 N -80HC PEB 115' 18.8' 18.8' 133.8' 133.8' I WA V 12.25" 9.625" 40 L -80 BTC 2481.2' 18.8' 18.8' 2500' 2500' 2030 cf (incl 158% OH xs) 8.5" 7" 26 L -80 BTC 9881.2' 18.8' 18.8' 9900' 9900' 408 cf (incl 35% OH xs) \� \ l 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) 1 �.i Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): ���111 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 0 Drilling Program El Time v. Depth Plot 0 Shallow Hazard Analysis Property Plat p Diverter Sketch Q Seabed Report ❑ Drilling Fluid Program il 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Alexey Sachivichik (907) 575 7315 Printed Name James Weeks Title Managing Partner Signatur:ff one (907) 258 2969 Date /p?• / p � • Dg Commission Use Only Permit t IP ill API Number: Permit Approval See cover letter for other Number. a„epli0:5- 50 -O 9 '? J ?cxx? Date: a.1F3 -`" / 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 es: ^ Other: t 0 Py` %' c'- h Samples req'd: Yes No ❑ Mud log req'd: Y NO �® i H measures: YesI Non Directional svy req'gYes 0 No 1 z 1 1 � �� DATE: ....111 f APPROVED BY THE COMMISSION , COMMISSIONER Form 10-401 Revised 12/2005 OR1GINIAL Submit in Duplicate • . _ 4 4 !� .4 / EXPLORATION, LLC Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: Dewline #1 Dear Mr. Seamount, UltraStar hereby applies for a Permit to Drill a new oil exploration well from an ice pad on the shore of Point Storkersen north on the North Slope. UltraStar plans to use the Doyon/Akita Arctic Wolf rig to drill its Dewline #1 well. The Dewline #1 will consist of 16" conductor pipe, 9 5/8" surface casing and 7" production casing. The well will be drilled as a straight hole Waste drilling fluids and ground cuttings will be disposed of at the grind and inject facility operated by BP in the Prudhoe Bay Field. 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 drilling program 4) Drilling Time versus Depth Plot 5) Dewline #1 Proposed Wellbore Diagram 6) Pressure Calculations, Drilling Area Risks and Waste Disposal 7) Casing Properties and Design Factors 8) Diagrams and Descriptions of the BOP Equipment to be Used 9) Drilling Fluid Program 10) Cementing Program 11) UltraStar 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. 12) The following are UltraStar' s designated contacts for reporting responsibilities to the Commission: 1) Completion Report Alexey Sachivichik, Drilling Engineer 0 0 (20 AAC 25.070) (907) 258 -3446 2) Geologic Data and Logs Alicia Orange, Geologist (20 AAC 25.071) (907) 272 -1232 If you have any questions or require additional information, please contact Alexey Sachivichik at (907) 258 -3446 or (907) 575 -7315 Sincerely, ULTRASTAR EXPLORATION, LLC. James Weeks, 09 aging Pa er ttachements Cc: Alexey Sachivichik - Fairweather iSS . n • I. f. z ` t. 17 B a �* Pr ' dhoe t , ,,. a t. m i ... > ' e M' `5r #11 za Nil I . .',, - ' Y5`4„:".ii.474,..tlei;,, Lg t 1 Ink \-. o. .ra. r' m � { }� i *i • t . R�- a ,k i i@8 O k4 i ' {_ LAS1216$' � j: am s °','.. • .. .. •.° f. 4 s _ .. ' ` a 1 .- , Legend sheens Events _ t -.£" �": - " , t _ • - me goad �onaaon '° , . - ,; , te ' � water Sourras _ - �' " s i� . , {i fi, j ' fi t 1 S cfions Gild gt t Boundar :es 5 - Ultrastar Well and v. Ope rtor Lease Acreage ' 33 1 36 ULTRASTAR H Ice Road Location Map AVCG :. ii B'20 x 5 project No. Checked By: 0 425 850 1,700 2,55 , 0 3400 , !1 Prudhoe Bt '. % Fe-, cPAi PIONEER NR Date: 10/07/2008 F preum .m.d "� , -n.,, —. -a+ - n« . . • .r EXPLORATION, LLC Summary Drilling Procedure 1. Prior to moving in drilling rig, drill /drive a 16" conductor to ±80' below ground level then excavate around it and install a cellar. 2. Move in, rig up Doyon/Akita Arctic Wolf Rig #1. Notify AOGCC of intention to spud. Rig up diverter on 16" conductor and function test. Rig up mud loggers. 3. M/U 12 -1/4" drilling assembly with MWD tools and drill a vertical hole to 2,500'. 4. Run 9 -5/8 ", 40 #, L -80, BTC surface casing and cement to surface per cementing program. WOC. 5. N/D Diverter. Install wellhead, N/U 5K WP BOPE and test to 5,000 psi. 6. M/U 8 -1/2" drilling assembly with MWD tools. 7. RIH with 8 -1/2" drilling assembly, clean out to float collar and test 9 -5/8" casing to 3,000 psi. Drill out float collar, cement, float shoe and 20' of new hole. Conduct leak -off test. Displace spud mud from well with FloPro polymer mud system. 8. Drill 8 -1/2" vertical hole to 9900'. 9. Condition the hole, POH and run open -hole logs. 10. Run 7 ", 26 #, L -80, BTC production casing and cement per cementing program. WOC. 11. N/D BOPE, N/U 5,000 psi WP tree and test tree. 12. RDMO Arctic Wolf #1. 13. After completion of the well, it will be perforated and tested. , Fk[ ( RATION. ttC UltraStar Exploration Time, days D ewline #1 0 5 10 15 20 25 30 Time, days Depth, ft 0 1 0 0.0 Accept rig, mix mud, finish R/U 2 100 0.0 Nipple up diverter /prepare top drive 3 500 8.7 P/U BHA, spud and drill 1000 4 1000 8.7 Drilling 5 2000 9.0 Drilling 6 2500 9.6 Drilling, short trip & condition hole, POET, R/U to run casing 2000 7 2500 9.6 Run 9 -5/8 ", 40 #, L -80, BTC casing to 2481', R/U and cement casing & WOC 8 2500 9.6 N/U BOPE and test same 3000 9 2500 9.7 Test BOPE, M/U BHA, RIH, drill out, perform LOT 10 3000 9.6 Drilling, displace with oil base mud system 11 4000 9.6 Drilling 4000 12 5000 9.6 Drilling .\\*. \ \444/44.4. 13 6000 9.5 Drilling —4—Time, days 14 7000 9.6 Drilling 5000 15 8000 9.6 Drilling 16 9000 10.5 Drilling 17 9800 10.4 Drilling 6000 18 9800 10.6 Short trip and condition hole, POH 19 9800 10.5 Logging 7000 20 9800 10.5 Logging 21 9800 10.6 Clean out, UD DP 22 9800 10.6 Run and cmt 7" casing 8000 23 9800 9.5 P/U 3 -1/2" tbg and scraper, CO to FC, displace to brine 24 9800 9.5 POH, run completion 25 9800 9.5 N/D BOPE, N/U tree, clean pits, release rig 9000 10000 • l jj raStar Dewline #1 16" conductor set 100' MD /TVD 12 1/4" Hole 1820' ( +1-251- Permafrost Diesel (Freeze protect) 9.5/8 ", 40 #, L -80, BTC csg • 2500' MD /TVD 3260' - Coal? 4305' - T3 Mud 4745' - K15 TOC - 7500' Pt Mac fault 6900 -7100' 8.5" Hole 7935' - Top Kuparuk 4 G-Class 15.8# cement 9325' - Sag River 9475' - Ivishak TD 9900' MD /TVD 7 ", 26 #, L -80, BTC csg it EXPLORATION, LLC Maximum Anticipated Surface Pressure: 12 -1/4" Hole Section This hole section will be drilled with a diverter only, no BOPs. While MASP will equal the formation pore pressure at the surface casing shoe depth of 2,481' less a gas gradient to the surface, it cannot be shut in, only diverted. Offsetting well information indicates that the pore pressure at 2,500' TD will be a maximum of 9.5 ppg (or 0.494 psi/ft). Calculations for MASP (12 -1/4" hole) = 2,500' (0.494 -0.11) = 960 psi 8 -1/2" Hole Section The maximum anticipated pressure (MASP) for the 8 -1/2" hole section in this well will be the formation pore pressure (less a full gas column to the surface) at 9900' MD. Offsetting well information indicates that pore pressure at TVD will be a maximum of l 1ppg (or 0.572 psi/ft). Calculations: 8 -1/2" hole section MASP (pore pressure) = 9900'* (0.572 -0.11) = 4574 psi With MASP in the 8 -1/2" open hole section is expected to be 4574 psi and the 5,000 psi BOPE system to be used will be adequate. Well Proximity Risks: The closest wellbore to this one is Pt Storkersen #1 located approximately 6747 feet away but directional simulation indicates there is no anticipated interference expected between wellbores. • Drilling Area Risks: 1. There is a remote possibility of encountering gas hydrates. If it does occur, it will be treated with extra care, slow down, slightly increase mud weight and slowly POH. 2. There is a little risk of H2S in the area as 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 of in BP's grind and inject facility at Prudhoe Bay 1 all a/ EXPLORATION, LLC Dewline #1 Casing Design Verification Planned Casing program 9 -5/8" 7" Surface Casing Production Casing Depth (MD) 2,500' 9900' Depth (TVD) 2500' 9900' Hole size 12 -1/4" 8 -1/2" Weight (ppf) 40.00 26.00 Grade L -80 L -80 Connection BTC BTC -M Nominal ID (in) 8.835 6.276 API Casing Design Factors Design factors are essentially "safety factors" that allow the design of safe, reliable casing strings. Each operator may have his own set of design factors based on his experience and the condition of the pipe. Here we use operator's recommended design factors. Design Factors: Tensile Joint Strength: Nt = 1.8 Collapse (from external pressure): Nc= 1.125 Burst (from internal pressure): Ni = 1.1 The pore pressures and fracture gradients used here are those derived from studies of offsetting well PM 1 -01 and PM 12. 1 • Design Factor Calculations Burst Requirements Use maximum anticipated surface pressures (MASP) for each casing string. For each casing string MASP is the formation pressure at the next casing point less a gas column to surface. 9 -5/8 ", 40 #, L-80, BTC Surface Casing: MASP at 8 -1/2" hole section TD of 2500': MASP = (2500') ((9.5 ppg x 0.052) -0.11 psi/ft) = 960 psi DFb = burst strength / burst stress = 5,750 psi / 960 psi = 5.99 7 ", 26 #, L-80, BTC -M Production Casing: Maximum burst stress is formation hydrostatic pressure at TD less a gas column to surface: Burst stress = (9900') ((11 ppg x 0.052)- 0.11psi/ft) = 4574 psi DFb = burst strength / burst stress = 7240 psi / 4574 psi = 1.58 Collapse Requirements Use an external pressure consisting of the formation pore pressure at the casing shoe and an internal pressure of a gas column to surface. 9-5/8", 40 #, L-80, BTC Surface Casing: External pore pressure = 9.5 x 0.052 x 2,500' = 1235 psi Internal pressure w /gas only = 0.11 x 2,500' = 275 psi Collapse stress = 1235 psi - 275 psi = 960 psi DFc = collapse rating / collapse stress = 3,090 / 960 = 3.22 1 7", 26 #, L-80, BTC -M Production Casing. : External pore pressure = 11 x 0.052 x 9900' = 5663 psi Internal pressure w /gas only = 0.11 x 9800' = 1078psi Collapse stress = 5663 psi — 1078 psi = 4585 psi DFc = collapse rating / collapse stress = 5663psi / 4585 psi = 1.24 Tension Check Use buoyed weight of casing in mud having the expected density when running the pipe. 9-5/8", 40 #, L-80, BTC Surface Casing: Weight in air = 2,500' x 40 lb /ft = 100000 # Pipe weight in fluid = Pipe wt.(in air) x Buoyancy Factor 100000 # x 0.8548 = 85480 # DFt = body tensile strength / buoyed wt = 916,000 # / 85480 # = 10.72 7 ", 26 #, L-80, BTC -M Production Casing: Weight in air = 9900' x 26 lb /ft = 257400 # Pipe weight in fluid = Pipe wt. (in air) x Buoyancy Factor Pipe weight in fluid = 257400 # x 0.8365 = 215315# DFt = joint tensile strength / buoyed wt = 604000 # / 215315 # = 2.81 _- —1 VOYON 5 p 0 — _ — ' — — \ DRILLING .�ecnP \ofo9e Wa SO x,p0 \\ 1 �9 `� � • . • QfeJO�� DRILLING LTD- c sd -- 141 � , 0^ 1 in *6„4::� \eNo \e N^e \ ARCTIC WOLF from 4fom \ 1i \ \ i , e m ilk � `_ p 1 j MOUSEHOLE \1`f �' � i� ` � DRILL 12' DEEP $ (-0,-; \ 3 , •.. ••• ' \ AT 3° TO WELL ,` DRILL 31EDEEP 1 \ \ .••.. ',',�' \1 6' AT 9° TO WELL 1 1 \ O \ \ G �: - 2 1 \ . o 1 \ \ u — — ' — -- DEPTHS BASED ON A 44' RATHOLE & 26' MOUSEHOLE 1 • \� \ G — — 1 \ o 1 1010°I° 1 BOP Equipment • 1 ea. - Hydril divertor annular BOP, model MSP, 21 1/4" x 2000 psi, flanged, NACE trim • 1 ea. - Shaffer annular BOP with nitrile element, 11" x 5000 psi, stud x flanged, NACE trim. • 1 ea. — Shaffer, LXT, double gate, manual, 11" x 5000 psi, stud x stud, NACE trim • 1 ea. — Shaffer, LXT, single gate, manual, 11" x 5000 psi, stud x stud, NACE trim • stack is moved into cellar with a tracked dolly and lifted with hydraulic rams Spools and Valves • 1 ea. - mud cross, 11" x 11" x 5000 psi with 2 ea.- 3 1/8" x 5000 psi side outlets, NACE trim.. • 2 ea. - 3 1/8" x 5000 psi, hydraulically operated gate valves, NACE trim • 2 ea. - 3 1/8" x 5000 psi manual valve , NACE trim • 1 ea. - diverter spool , 21 1/4" x 21 1/4" x 2000 psi, with one 16" , 150 psi knife gate valve • 4 ea- 16 ", sch 40, flanged diverter spools x 20 ft long ea. • 1 ea. - adapter spool, 21 1/4" x 16" x 2000 psi Choke Manifold • 13 ea. - 3 1/8" x 5000 psi, manual gate valves, NACE trim • 1 ea. - 3 1/8" x 5000 psi, manual choke • 1 ea. - 3 1/8" x 5,000 psi, remote operated hydraulic choke • All valves have NACE trim and color coded handles for sequencing. • The Pason supplied remote choke and control panel is located on the drill floor BOP Closing Unit • 1 ea. - Oilco, 6 station, 3000 psi, 180 gallon accumulator unit, with a remote control panel in the doghouse. • Primary closing hydraulic pressure is provided by two electrically driven triplex pumps. Secondary back -up is an air pump, and tertiary emergency pressure is provided by bottled nitrogen BOP Test Pump • 1 ea. — 5000 psi, triplex pump with dedicated test fluid tank. 5 II 1 VALVE LEGEND d e--- 1 L� ©� ©�0�©�OTin 2 BYPASS i r U r.,,,,„, 3 CHOKE (� 4 BOTTOM RAMS In 11% 5000 PSI, HYDRIL ANNULAR BOP ❑ ❑ 5 BLIND RAMS STUDDED Tov /FUUCEO 800106 LJ J 5 TOP PIPE RAMS ACCUMULATOR: OILCO, 6 STATION 7 ANNULAR TRIPLEX PUMP: 2/575 VAC, 25 HP FLANGE BOTTOM /FIANCE TOP BX 160 AIR PUMP: 2/40: 1, BGPM, 3,000 PSI FLUID RESERVOIR: 450 GALLON .14 15111� 11". 5000 PSI SHAFFER LXT DOUBLE PIPE RAM 1 OOO •� �■ �• SNDDED BOTTOM /FIANCE TOP 60 160 ®�IANNVLAR PRESSURE 3' CHOKE LINE ■ 3 1/8' 5000 PSI HCR VALVE �� R` ■ 11I` I 1 11` 1 �1I= 2" KILL LINE 1 1 1 1 1 I ∎ < 111�/�1111� �Illllr �I�� AI= 3 1/8" 5000 PSI HCR VALVE J \ 3 1/8" 5000 P51 LATE VALVE C OPEN CLOSL , LP ANNULAR NtVULATV Il 3 1/8" 5000 651 GATE VALVE �∎ FLANGE BOTTOM /STUOOEO TOP B2 160 C _ _ _ _ _ ] — O O 0 O o O -41 i ■ �- 11 ". 5000 P51 SHAFFER LXT PIPE RAM CHOKE MN) -R INCREASE DECREASE STUDDED BOTTOM /FLANGE TOP BX 160 4• N 0 BOP STACK MI= ADAPTER SPOOL OPEN CLUSL o o O I WELLHEAD -- FLANGE /FLANGE KII O PPE :a. Y °""¢ __ __i I 1 HUSH & HOLD 0 0 :.. 0 PUMP LAMP t ' ACCUMULATOR MANIFOLD 0 l�l o O 1 12 BOTTLES, 15 GALLONS EACH TO OPERATE PANFJ RUN TEST E ri i BOP STACIk ELEVATION , REMOTE PANEL IN DOGHOUSE AND UTILITY MODULE f __ I t N "YN�'NN oaERaieDelrt NIT CnrE VALVE 1 1 RGA BOTLE 21 1/4" 2000 Psi, 6 B TLES, B 337 CKUP CU. T FT. S Il MSP HYDRIL BOP /DNERTER STUDDED TOP/FLANGED BOTTOM 12" FLC'D VENT UNE 1 / B I M 1 I I ; I I I ' 1= rza ^ z r a a zip n a asa' 1 \_/ DNERTER SPOOL PROJECT �vy� ARCTIC WOLF RIG 2 SURFACE DIVERTER CONFIGURATION I MU BOP SYSTEM - ' AND CONTROL Wer El L 11 - - 1 014 LEA Mee TO MOM 8/02/07 cRE W PR A R N� LEA Per i OWL 1 1 601E W. DP 00508666 A NTS .ITH OW 01 1 I i ITEM DESCRIPTION 1 279 mm 34500 kPa (11" 5K) SHAFFER SPHERICAL 2 279 mm 34500 kPa (11" 5K) SHAFFER DOUBLE GATE 3 279 mm 34500 kPa (11" 5K) DRILLING SPOOL 4 279 mm 34500 kPa (11" 5K) SHAFFER SINGLE GATE II Ljil 1 1 Mil f J y Loz I I In I ,r : o [ 1:Allilil 0 *1 0 10., la i _ . _.....,.... po . , [1:11 .- r ilibiAli lim .,., -cr, -ill 0 ,,,vir-,,, 0 Iv IN i • • upt,.....1. oi)i.,41.1 . .,,, , mi.. r.ii ,,, f ,--, 14 . ' 11 4 ia111111 :.41•II ii al a /��r ^. kl V ..A1111110 moo ;ilk I C �MD 110 , 0 III 11.0 • 11 1 i In t / -.. .,\ The information contained in this drawing is 16 Rig 94 the sole property of AKITA Drilling Ltd. Any !� T A L I S M A N ` NTS .. reproduction in whole or part without the c „, , n - °" RTF Well Cross Section w/ 11" express written consent of AKITA Drilling 2 DRILLING LTD. ors Ltd. Is prohibited. 2302 em street, NIs9U Alberta 5M Stack T9E 722 Tot (780) 9556700 ` \\ N0. R.Lbn Outs %.. 11 -5,, Stack f� LEDGEND White Handle Valves 11 7 voipir AKITA JV �` Normally Open rt . Y p Pk Red Handle Valves A"' Normally Closed lIl r F LAR TO P '` r � K illi P 80 sTAC 0 ; ' /0"\ \ . F i, t, 9 \i, 0 - o ,i,..-5;:))- , To AT, „..., MATERIAL LIST Rem Description :x z �: , 3- 1/16" 10M Remote Operated rA , k tf w A Choke ` " - -4.0 B 3 -1/8" 5M Adjustable Choke i I 1 � -14 1 3 -1/8" 5M Manual Gate Valve ° ;: ARCTIC WOL 1 • Scblumberger C ern CAD E well cementing recommendation for 9 -5/8" Surface Casing Operator : Fairweather Well : Dewline #1 Country : MUS Field : North Slope State : Alaska Prepared for : Mr. Alexey Sachivichik Location : Point Mac Proposal No. : AFE v2 Service Point : Prudhoe Bay, Alaska Date Prepared : 11 - 10 - 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 Casing Stage : Single Rig Type : Land Prev.String MD : 115.0 ft OD : 16 in Weight : 84.0 lb/ft Csg /Liner MD : 2481.0 ft OD : 9 5/8 in Weight : 40.0 lb/ft Landing Collar MD 2401.0 ft Casing/liner Shoe MD 2481.0 ft Mud Line 0.0 ft Total MD 2481.0 ft BHST 51 degF (/ sO Bit Size 121/4 in Q Mean OH Diameter 12.250 in Mean Annular Excess 158.1 % C Mean OH Equivalent Diameter 15.519 in a Total OH Volume 553.6 bbl (including excess) 'URT E 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 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 Dewline Deep 1.cfw;11 -10 -2008 ; LoadCase Surface Casing ; Version wcs- cem452_07 Client : Fairweather 1 0 Well : Dewline #1 Silskrier String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Loadcase : Surface Casing Section 1: fluid sequence Job Objectives: Cement to Surface Original fluid Mud 9.50 lb /gal Pv : 27.000 cP Ty : 14.00 lbf/100ft2 Displacement Volume 182.1 bbl Total Volume 613.6 bbl TOC 0.0 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb /gal) MUDPUSH XT 70.0 0.0 10.40 Pv:34.000 cP Ty:20.00 lbf/100ft2 Lead Slurry 313.6 1981.0 0.0 10.70 Pv:50.000 cP Ty:26.00 lbf/100ft2 Tail Slurry 47.9 500.0 1981.0 15.80 Pv:96.000 cP Ty:22.00 lbf/100ft2 Mud 182.1 0.0 9.50 Pv:27.000 cP Ty:14.00 lbf/100ft2 Static Security Checks : Frac 9 psi at 115.0 ft Pore 10 psi at 115.0 ft Collapse 2732 psi at 2401.0 ft Burst 5750 psi at 0.0 ft Csg.Pump out 33 ton ft (x 1000) psi 0 2 — Hydrostatic - rrac _ - Pore o } o o - ,_ o 4 IA o- I i o i 0 M - Fluid Sequence Static Well Security Page 2 Dewline Deep 1 .cfw; 11 -10 -2008; LoadCase Surface Casing ; Version wcs- cem452_07 Client : Fairweather ii 1 Well : Dewline #1 Sdlokrier String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Loadcase : Surface Casing Section 2: pumping schedule Start Job: Circulte two hole volumes; Safety Meeting; Pressure Test Surface Equipment Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH XT 5.0 70.0 14.0 70.0 80 7 -Start Pumping Spacer Pause 0.0 0.0 10.0 0.0 80 4 -Drop Bottom Plug Lead Slurry 5.0 313.6 62.7 313.6 80 13 -Start Mixing Lead Slurry Tail Slurry 5.0 47.9 9.6 47.9 80 16 -Start Mixing Tail Slurry Pause 0.0 0.0 5.0 0.0 80 21 -Bump Top Plug Mud 8.0 160.0 20.0 160.0 80 19 -Start Displacement Mud 3.0 22.1 7.4 182.1 80 21 -Bump Top Plug Total 02:08 613.6 bbl hr:mn End Job: Bump Plugs; Bleed -off; Check that Floats are holding Dynamic Security Checks : Frac 7 psi at 115.0 ft Pore 3 psi at 115.0 ft Collapse 2732 psi at 2401.0 ft Burst 5427 psi at 0.0 ft Temperature Results BHCT 65 degF Simulated Max HCT 68 degF Simulated BHCT 68 degF Max HCT Depth 2481.0 ft CT at TOC 59 degF Max HCT Time 02:08:39 hr:mn:sc Static temperatures : At Time (hr:mn) (hr:mn) Geo. Temp. Top of Cement (degF) (degF) 20 degF Bottom Hole (degF) (degF) 51 degF Page 3 Dewline Deep 1 cfw ; 11 -10 -2008 , LoadCase Surface Casing , Version wcs- cem452_07 Client : Fairweather 1110 IP Well : Dewline #1 Schi Me rge n String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Loadcase : Surface Casing ^ -Cal :. WHp - ._. 0 — Cale. Pump Press 0 20 40 60 80 100 120 140 Time (min) Fluids at 2481 ft Acquired 0 Out _ i Acquired 0 In f -a - r-_ _ � L , a o f' ri . f I a IIII I 0 20 40 60 80 100 120 140 Time (min) Page 4 Dewline Deep 1.cfw; 11 -10 -2008 ; LoadCase Surface Casing ; Version wcs- cem452_07 Client : Fairweather III • S Well : Dewline #1 String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Loedcase : Surface Casing * CemCADE Client : Fairweather Well : Dewline #1 String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS v Depth = 115 ft Depth = 2481 ft N — Frac N — Frac rt,- O i — Hydrostatic (N Dy O ---- Hydrostatic Dynamic amic N __.. namC r N N r o _ m v u i ''' 1 2 `- N CO a) in • a a ° E O- C QO Q °. u O c-.) C) a) Pi O S CO o CO _ _ co .. r- _— 0 50 100 150 0 50 100 150 Time (min) Time (min) 3 • Total Depth = 2481.0 ft Top of Cement = 0.0 ft *Mark of Schlumberger SCIII' erlr Page 5 Dewline Deep 1.cfw;11 -10 -2008 ; LoadCase Surface Casing ; Version wcs- cem452_07 A Client : Fairweather • • I Ir �r Well : Dewline #1 String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Loacicase : Surface Casing Section 3: centralizer placement Top of centralization :100.0 ft Bottom Cent. MD :2461.0 ft Casing Shoe :2481.0 ft NB of Cent. Used :22 NB of Floating Cent. :22 Centralizer Placement Bottom MD Nbr. Cent. / Cent. Name Code Min. STO @ Depth (ft) Joint ( %) (ft) 2361.0 19 541 - ANJO -9 5/8 -6 -36 (.171") 47.4 241.0 2481.0 3 1/1 541 - ANJO -9 5/8 -6 -36 (.171 ") 95.0 2481.0 Centralizer Description Centralizer Tests Cent. Name Code Casing Max. Min. OD Rigid Origin Hole Size Running Restoring OD OD (in) (in) Force Force (in) (in) (Ibf) (Ibf) 541 - ANJO -9 5/8 -6- 9 5/8 13.252 9.846 No Houma 12.250 299.00 1733.28 36 (.171 ") (1) - Centralizer performance data is based on tests by WEATHERFORD as per the current API 10D specifications Running Force Calculations: Travelling Block Weight :20 ton Friction Factor Centralizer /Formation :0.3 Total Drag Force :0 ton Hook load Down Stroke :62 ton Hook load Up Stroke :63 ton Page 6 Dewline Deep 1 cfw ; 11-10-2008 ; LoadCase Surface Casing :Version wcs-cem452_07 Client : Fairweather • • Well : Dewline #1 SIIallrger String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Loadcase : Surface Casing ft % �_ 41 nn 80 100 - Between Cent. At Cent. I ______ , , o + ._ _ -E -1 o _ . _ 4 '=' _ i .= c, - Pipe Standoff Section 4: WELLCLEAN II Simulator Risk Mud on the Wall Fluids Concentrations 1 0 § i 200 1 200 200 I -240 400 440 Baa -s00 Boa $ao 800 800 800 > 800 r. 1000- - 1000 •. 1 000 1000 T- 1200- -1200 -' x 1 ?aa 1200 1400 : 1400 r 0 1400 - -1400 C a 1$00 1600 0 1600- - 1600 180x- 1800 1800 1800 000 2000 2000 . 2000 2200 2200 2200 2200 2400 2400 2400. 1 2400 I o ; m . a e 0 O x Mud I I Lead Slurry ® High I= Low Tail Slurry I I MUDPUSH XT I I Medium 11111111 None Page 7 Dewline Deep 1 .cfw; 11 -10 -2008 ; LoadCase Surface Casing ; Version wcs- cem452_07 Client : Fairweather • • Well : Dewline #1 SIiihrgor String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Loadcase : Surface Casing ft % a _ 4CI nn $0 100 •— Std Betw. Cent. I - Cement Coverage _ 0 1 0 o - r i ...... , , a _ i r O ! N , tt f a _i_.mm_...._. =_.mm_.m_.. ._,_ ±. , , 1., ...i._._.._.1 0 Cement Coverage Page 8 Dewline Deep 1 .cfw; 11 -10 -2008; LoadCase Surface Casing ; Version wcs- cem45237 Client : Fairweather • Well : Dewline #1 Sillokrier String : Surface Casing 9 District : Prudhoe Bay, Alaska Country : MUS Loadcase : Surface Casing Section 5: fluid description Mud DESIGN Fluid No: 1 Density : 9.50 lb /gal Rheo. Model : BINGHAM P : 27.000 cP At temp. : 80 degF T : 14.00 Ibf/100ft2 Gel Strength : (Ibf /100ft2) MUD Mud Type : WBM Job volume : 182.1 bbl Water Type : Fresh VOLUME FRACTION Solids : 4.0 % Oil :0.0% Water : 96.0 % MUDPUSH II DESIGN Fluid No: 2 Density : 10.40 lb /gal Rheo. Model : BINGHAM Pv : 34.000 cP At temp. : 80 degF T : 20.00 Ibf /100ft2 Gel Strength : (lbf/100ft2) Job volume : 70.0 bbl Lead Slurry DESIGN Fluid No: 3 Density : 10.70 lb /gal Rheo. Model : BINGHAM Pv : 50.000 cP At temp. : 80 degF T : 26.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) DESIGN BLEND SLURRY Name : B809 Mix Fluid : 19.043 gal /sk Job volume : 313.6 bbl Dry Density : 105.47 lb/ft3 Yield : 4.33 ft3 /sk Quantity : 406.82 sit Sack Weight : 188 lb Solid Fraction : 41.2 % BASE FLUID Type : Fresh water Density : 8.32 lb /gal Base Fluid : 19.043 gal /sk Page 9 Dewline Deep 1 .cfw, 11 -10 -2008 ; LoadCase Surface Casing ; Version wcs- cem452_07 Client : Fairweather • �� Well : Dewline #1 String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Loadcase : Surface Casing Tail Slurry DESIGN Fluid No: 4 Density : 15.80 lb /gal Rheo. Model : BINGHAM Pv : 96.000 cP At temp. : 80 degF T : 22.00 Ibf/100ft2 Gel Strength : (Ibf/100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.105 gal /sk Job volume : 47.9 bbl Dry Density : 199.77 lb/ft3 Yield : 1.16 ft3 /sk Quantity : 231.89 sk Sack Weight : 94 lb Solid Fraction : 41.2 % BASE FLUID Type : Fresh water Density : 8.32 lb /gal Base Fluid : 5.105 gal /sk Additives Code Conc. Function D046 0.200 %BWOC Antifoam D065 0.300 %BWOC Dispersant D167 0.150 %BWOC Fluid loss Page 10 Dewline Deep 1 cfw ;11 -10 -2008 ; LoadCase Surface Casing , Version wcs- cem452_07 • • Client : Fairweather Well : Dewline #1 SIkrier String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Loadcase : Surface Casing * CemCADE Client : Fairweather Well : Dewline #1 String : Surface Casing District : Prudhoe Bay, Alaska Country : MUS Annulus ID : 9.625 in Flow Rate : 7.0 bbl /min o_ r — Mud - MUDPUS XT _.. _.... _.. _... CD - Tail Slurry -- - - O ' co O , , _ _. _.. _.... _... O _. __. _.. _.. O O _ 8 r 1.0 ` o E a 3 `j > a En C L o o • 4 6 c L- O _ u CO 9 N ' T N a l l 1 ! I 1 I ' 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 13.0 13.1 13.2 13.3 o Annulus OD (in) 3 o ■ Mud Bingham W = 27.000 cP Ty = 14.00 Ibf /100ft2 ■ MUDRJSH XT Bingham: PV = 34.000 cP Ty = 20.00 Ibf /100ft2 - Lead Slurry Bingham PV = 50.000 cP Ty = 26.00 Ibf /100812 ■ Tail Slurry Bingham: R/ = 96.000 cP Ty = 22.00 Ibf /100f12 *Mark of Schlumberger Sdkmrger Page 1 Dewline Deep 1.cfw ; 11 -10 -2008 ; LoadCase Surface Casing ; Version wcs- cem452_07 • Sch C e m CAD E well cementing recommendation for 7" Production Casing Operator : Fairweather E &P Services Well : Dewline #1 Country : US Field : North Slope State : Alaska Prepared for : Mr. Alexey Sachivichik Location : Point Mac Proposal No. : AFE v2 Service Point : Prudhoe Bay, Alaska Date Prepared : 11 - - 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 Casing Stage : Single Rig Type : Land Prev.String MD : 2481.0 ft OD : 9 5/8 in Weight : 40.0 lb/ft Csg/Liner MD: 9881.0 ft OD: 7 in Weight : 26.0 lb /ft Landing Collar MD 9801.0 ft Casing/liner Shoe MD 9881.0 ft Mud Line 0.0 ft Total MD 9881.0 ft BHST 254 degF ((/ s \Gt Bit Size 8 1/2 in Q Mean OH Diameter 8.500 in Mean Annular Excess 35.0 To C7 Mean OH Equivalent Diameter 8.966 in Total OH Volume 577.9 bbl (including excess) � 4 —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 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 Dewline Deep 1 cfw; 11 -10 -2008; LoadCase 7in Production Casing (a); Version wcs- cem452_07 • • Client : Fairweather E &P Services I1�1 Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production Casing (a) Section 1: fluid sequence Job Objectives: Zonal Isolation; TOC @ 7,500' Original fluid Mud 11.50 lb /gal Pv : 27.000 cP Ty : 14.00 lbf/100ft2 Displacement Volume 375.0 bbl Total Volume 480.7 bbl TOC 7500.0 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb /gal) MUDPUSH II 30.0 983.9 6516.1 13.60 Pv:34.000 cP Ty:20.00 lbf/100ft2 Tail Slurry 75.7 2381.0 7500.0 15.80 Pv:96.000 cP Ty:22.00 lbf/100ft2 Mud 375.0 0.0 11.50 Pv:27.000 cP Ty:14.00 lbf/100ft2 Static Security Checks : Frac 323 psi at 2481.0 ft Pore 283 psi at 6516.1 ft Collapse 4184 psi at 9801.0 ft Burst 7240 psi at 9801.0 ft Csg.Pump out 94 ton ft (x 1000) psi o _ 0 10 1 — H — Frac — Pore 6 ) ' O _ c ''. "1""" � x cp— _ 3 1/4 I f ! 1 t 1 1 L _. .1__t_ k Q co E I o I I O - CV Fluid Sequence Static Well Security Page 2 Dewline Deep 1 .cfw; 11 -10 -2008; LoadCase 7in Production Casing (a); Version wcs- cem452_07 0 • Client : Fairweather E &P Services 5�r�r Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production Casing (a) Section 2: pumping schedule Start Job: Circulte two hole volumes; Safety Meeting; Pressure Test Surface Equipment Pumping Schedule Name Flow Rate Volume Stage Time Cum.VoI Inj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 5.0 30.0 6.0 30.0 80 7 -Start Pumping Spacer Pause 0.0 0.0 10.0 0.0 80 4 -Drop Bottom Plug Tail Slurry 5.0 75.7 15.1 75.7 80 16 -Start Mixing Tail Slurry Pause 0.0 0.0 5.0 0.0 80 21 -Bump Top Plug Mud 8.0 350.0 43.8 350.0 80 19 -Start Displacement Mud 3.0 25.0 8.3 375.0 80 19 -Start Displacement Total 01:28 480.7 bbl hr:mn End Job: Bump Plugs; Bleed - off; Check that Floats are holding Dynamic Security Checks : Frac 134 psi at 2481.0 ft Pore 254 psi at 9781.0 ft Collapse 4184 psi at 9801.0 ft Burst 5948 psi at 0.0 ft Temperature Results BHCT 184 degF Simulated Max HCT 254 degF Simulated BHCT 188 degF Max HCT Depth 9881.0 ft CT at TOC 177 degF Max HCT Time 00:00:00 hr:mn:sc Static temperatures : At Time 1 (hr:mn) (hr:mn) Geo. Temp. Top of Cement (degF) (degF) 1 189 degF Bottom Hole (degF) (degF) 254 degF Page 3 Dewline Deep 1.cfw;11 -10 -2008; LoadCase 7in Production Casing lal; Version wcs- cem452 • • Client : Fairweather E &P Services ��� Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production Casing (a) E -- Cale. WHP o — Calo. Pump Press. co _ _ y r(I I 0 20 40 60 8 100 Time (rnin) Fluids at 9881 ft Q - - - -- — — Acquired 0 Out t ._. _... -� - -- Acquired 0 In i i _. .. _ m_ sl QOut i. _o. Q In I i t ____ m o 0 2 40 60 80 100 Time (miry) Page 4 Dewline Deep 1.cfw; 11 -10 -2008: LoadCase 7in Production Casing (a); Version wcs- cem452_07 • • Client : Fairweather E &P Services I�r�r Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production Casing (a) * CemCADE Client : FairweatherE &P Services Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Depth = 2481 ft Depth = 9881 ft �- -- - Frac I `— — Frac _.. Pore I I --- Pore Pore — Hydrostatic 1 1 co ' — hydrostatic — Dynamic 1 r _ I co A 1 co �� m� 1 o NV o- T: a` m C c o Q Q co `o_ r B 1 7 ` N i. 1 40 60 I 0 20 4 0 80 100 0 20 40 60 80 100 Time (min) Time (min) i ° Total Depth = 9881.0 ft Top of Cement = 7500.0 ft 0 *Mark of Schlumberger Page 5 Dewline Deep 1.cfw;11 -10 -2008; LoadCase 7in Production Casing la); Version wcs- cem452_07 • • Client : Fairweather E &P Services YIIIUI Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production Casing (a) Section 3: centralizer placement Top of centralization :7500.0 ft Bottom Cent. MD :9861.0 ft Casing Shoe :9881.0 ft NB of Cent. Used :26 NB of Floating Cent. :0 Centralizer Placement Bottom MD Nbr. Cent. / Cent. Name Code Min. STO @ Depth (ft) Joint ( %) (ft) 8521.0 9 1/3 NW -ST -7 -6 -ST- III -9875 64.3 8441.0 9881.0 17 1/2 NW -ST -7 -6 -ST- III -9875 79.2 9821.0 Centralizer Description Centralizer Tests Cent. Name Code Casing Max. Min. OD Rigid Origin Hole Size Running Restoring OD OD (in) (in) Force Force (in) (in) (Ibf) (lbf) NW -ST -7 -6 -ST -III- 7 11.933 8.232 No Hannover 9.875 521.56 1620.87 9875 (1) - Centralizer performance data is based on tests by WEATHERFORD as per the current API 10D specifications ft % �_ 0 :?n 40 60 80 100 - -- Between Cent. i I I 1 - } -f -Y Cent_ iiiIiI 0 1 - 111111111111.11111111111 111111 I II ,=.'=' . 111111101111111111111111111111111M _ 0 - nano c 11 11111111.11 o ii II 0 o - C Pipe Standoff Page 6 Dewline Deep 1.cfw;11 -10 -2008: LoadCase 7in Production Casing (a); Version wcs- cem452_07 • 1 Client : Faiiweather E &P Services i ��l Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production Casing (a) Section 4: WELLCLEAN 11 Simulator Risk Mud on the Wall Fluids Concentrations z 5 7600 7600 ?600 75(10 7500 7500 ?Boo 7500 5000 5000 5000 8000 5200 5200 5200 5200 8400 8400 -+ 8400 8400 + � - 8600 6640 8600 `--- �" 8600 8600 `Y L 8500 0 6600 8800 9000 9000 0 9000 9000 ° 9200 9200 9200 9200 9400 ,`` 9400 9400 9400 9600 9600 9600 9600 9800 '. 9800 9800 9800 f • ) • • o a i i 2 4 Z 2 — Mud I 1 High IN Low Tail Slurry 1 1 Medium ED None 1 1 MUDFUSH 11 % ft 4 , 1 8[i 100 Std bets. Cent - Cement Coverage 0 0 o — o • O_ ^� O cc O IN _. O c Cement Coverage Page 7 Dewline Deep 1 .cfw; 11 -10 -2008: LoadCase 7in Production Casing lal; Version wcs- cem452_07 • • Client : Fairweather E &P Services it Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production Casing (a) Section 5: fluid description Mud DESIGN Fluid No: 1 Density : 11.50 lb/gal Rheo. Model : BINGHAM Pv : 27.000 cP At temp. : 80 degF T : 14.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) MUD Mud Type : WBM Job volume : 375.0 bbl Water Type : Fresh VOLUME FRACTION Solids : 4.0 % Oil :0.0% Water : 96.0 % MUDPUSH II DESIGN Fluid No: 2 Density : 13.60 lb/gal Rheo. Model : BINGHAM P : 34.000 cP At temp. : 80 degF T : 20.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) Job volume : 30.0 bbl Tail Slurry DESIGN Fluid No: 4 Density : 15.80 lb/gal Rheo. Model : BINGHAM Pv : 96.000 cP At temp. : 80 degF T : 22.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 6.357 gal /sk Job volume : 75.7 bbl Dry Density : 199.77 Ib /ft3 Yield : 1.53 ft3 /sk Quantity : 277.80 sk Sack Weight : 94 lb Solid Fraction : 44.4 BASE FLUID Type : Fresh water Density : 8.32 lb/gal Base Fluid : 6.357 gal /sk Additives Code Conc. Function D046 0.200 %BWOC Antifoam D065 0.300 %BWOC Dispersant D167 0.300 %BWOC Fluid loss D198 0.200 %BWOC Retarder D066 35.000 %BWOC Silica Page 8 Dewline Deep 1 cfw; 11 -10 -2008; LoadCase 7m Production Casing (a); Version wcs- cem452_07 • • Client : Fairweather E &P Services '1 ��1 Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production Casing (a) * CemCADE Client : Fairweather E &P Services Well : Dewline #1 String : Production Casing District : Prudhoe Bay, Alaska Country : US Annulus ID : 7.000 in Flow Rate : 7.0 bbl /min 0 0 cr) - Mud I I - MUDSH II PU ,' p I - Tail Slurry _ _ _ r— N 0 I N 0 p O °, O N E . (7) d 0 ' ,, 8 OD 3 2 ` 7 rn 2 d c A o A co U 1 o O s co 8.4 8.5 8.6 8.7 8.8 8.9 9.0 9.1 9.2 9.3 9.4 9.5 9.6 Annulus OD (in) 0 .3 ■ Mud Bingham PV = 27.000 cP Ty = 14.001bf/100f12 ■ MUDPUSH 11 Bingham PV = 34.000 cP Ty = 20.00 Ibf /100ft2 ■ Tail Slurry Bingham PV = 96.000 cP Ty = 22.00 Ibf /1008t2 *Mark of Schlumberger SchIiml ger Page 9 Dewline Deep 1 .cfw: 11 -10 -2008: LoadCase 7in Production Casing (a); Version wcs- cem452_07 • DRILLING FLUIDS PROGRAM ,r/ EXI 7 LORAITION, L L C j Dewline #1 E _ Prepared by: Jim Dwyer Senior Project Engineer M -I SWACO Reviewed by: Dallas Rhodes M -I SWACO NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. o UltraStar Exploration, LLC RFQ -003 L . II � tii n. Mi SWAG _ . Section 1 — Objectives / Benchmarks / Goals II II Goal / Objective Achieve Health, Safety and Environmental Goals Benchmark No Accidents, No harm to people, No damage to environment Performance Days away from work, medical treatments, fluids discharge, spills Measure Goal / Objective No NPT on well Benchmark No NPT due to mud properties out of specification. Performance Daily review of mud properties with mud engineer and project Measure engineer Goal / Objective Minimal losses to formation Benchmark Control and /or minimize seepage losses in underpressured sands. Performance Verify losses per hole section on well with OneTrax Measure Goal / Objective No NPT on well Benchmark No hole cleaning issues upon following the program and /or rig site mud engineers recommendations. Performance Monitor NPT on daily reports Measure UltraStar Exploration, LLC RFQ -003 • 1 M Section 2 - Well Design Dewline #1 Casing Hole Casing Depth TVD Mud Mud Weight Sum Size Size Program (MD -SS) (TVD -SS) System (PPM Days (in) (in) (ft) (ft) Conductor 100' 2500 2500 GEL SPUD 8.8 — 9.2 $29,737 7 9.625" 12.25" 7.0" 8.5" 9800 9800 LSND 9.5 - 11 $152,052 14 8.6 $3,450 3 Comp *Costs per hole section include engineering charges FORMATION TOPS ESTIMATED MUD WEIGHTS Mud Weights Formation Estimated Tops (TVD) (ppg) Point Mac Fault 6900' — 7100' 9.5 - 11 Top of Kuparuk 7935' 9.5 - 11 Sag River 9325' 9.5 - 11 Ivishak 9475 9.5 - 11 TD 9800' 9.5 - 11 UltraStar Exploration, LLC RFQ -003 • ... WA Section 5: Surface Interval (100 — 2500') - ,1 , 12.25" Surface Interval a Drilling Fluid System Fresh Water Spud Mud Key Products MI Gel, Gelex, Caustic Soda, PolyPac Supreme UL, SCREENKLEEN Solids Control 4 Mongoose Shakers, Desilter, 518 Centrifuge Large gravel sizes can cause hole - cleaning problems. = Sticky clays in the permafrost can slow ROP from bit and BHA balling. Potential Problems Swabbing in the clays may also be a problem. Hydrates may be encountered 4 r Wash out in unconsolidated sections. �x ilk Close a ■roach surface cement contamination Maintain fluid temperature as low as possible ( <60 F) Provide adequate viscosity to clean the hole of drill cutt III Interval Objectives Minimize time in hole section Control fluid loss below Permafrost ' Condition mud to •rovide a •ood cement'ob SURFACE INTERVAL MUD PROPERTIES Mud Wt. Funnel API Fluid 7_ _:: :'. 1 Depth MD (Ib /ga Viscosity Plastic Yield Point Loss Chlorides (ft) 1) (sec /qt) Viscosity (Ib /100ft (ml /30min) (mg/1) pH 100 -1,800 Base 8.8- +400 initial * Permafrost 9.2 55 -30 70 -55 NC - 8.0 <1000 .0 — 9.5 300 final _ 250 initial l z 1,800' — 2,500' 9.2 55 30 60 45 8.0 <109c, 9 9 .5 225 final * The viscosity of the fluid in the suction pit will need to be adjusted to achieve the target flowline u f tne1 vtsco 1h1, Recommended Initial Spud Mud Formulation I li Base water Use "cold lake water" whenever possible to keep the fluid temperature at a minimum. �+ � d Soda Ash 0.25 lb/bbl '1 ,I i " I, :'.� M - Gel 28 — 30 Ib /bbl (Add to the make -up water and allow to hydrate as long as is possible prior to del' n " Recommended Solids Control Equipment Initial spud in; install 84's on all shakers. Operate in LIN motion. 6 ongoose Shakers Base of permafrost, screen up to 110 to 165's on shaker. , Change screens accordingly and record usage on daily mud report. i Check screens for holes between connections. Inspect all cone bodies and apexes, replace as necessary. Make sure that 1/2 Apexes are - installed if the Desander is not to be run. VACO De - Silter Ensure that Ft. of Hd. Gauge is available and working properly at the De- Silter, not the i pump. Ensure that De- Silter feed pump can achieve 95' of head. CRITICAL! ' The underflow from all the hydroclones should be in a spray discharge if work proper "4. ,. Run below Permafrost as needed to control weight of 9.5 Ib /gal. The speed on the VACO 518 Centrifuge centrifuge should be set at 2,500 rpm to allow more fluid to be processed and discharge - more cuttings. Refer to mud man for solids information to determine speed and feed rate of . i z- centrifuge. UltraStar Exploration, LLC RFQ -003 • MI SWACQ Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 2500' casing shoe and moving cuttings concentration (MCC) in the annulus while drilling the section. Virtual Hydraulics SNAPSHOT ti Mi SAC ©1995 -2006 M -I L.L 750 GPM MD:2500 ft OperatorultraStar Exploration °"°w "'-""' rn=xaM -u.LC TVD2500 ft Well NameDewline1 � Bit Slzel2.25 In Locatlo Slope VIRTUAL HYDRAULI®1`apSho Date:11/6/2008 CountryAlaska nNorth Dept Geometry Density ; ac t Va Hole Clean Pressure Distribution (ft) MD/TV Cs ODII (Ib /gai) YP, LSY (IbI100tt (ft/min) Index ( %) la) (in; 8.e e z s s 10.0 0 20 40 so 0 300 600 vc a F P Bit = 16.7Ann 4 3.7DS = 79.6 100 4 ► 16.00' 100 14.00 200 a 400 600 Fluid , a � ', Water -Based Mud `a Mud Weight 9.1 Ib/gaI 800 Test Temp 120 °F 1 , System Data 1000 I- . : Flow Rate 750 gal /min Penetration Ratd50 ft/hr 1200 Rotary Speed 100 rpm Weight on Bit 15 1000 lb 14o0 Bit Nozzles 1.5 in' 1600 Pressure Losses Modified Power Law Drill String 1009 psi 1800 MM/13 358 psi Motor 256 psi Bit 211 psi 2000 Bit On /Oft 100 psi Annulus 47 psi 2200! Surface psi U -Tube Effect Equip 32 33 psi r Total System 2046 psi 2400 ' ESD ECD +Cut 2500 L 12.25 , : Csg Shoe 9.18 9.43 9.69 2800 zs aa -- I j TD 9.19 9.56 9.81 - ESD .-- Pv g E ' S VRDH- Version 31 Fenn 35 ECD VP f 1:.:1 0 Bed Vol % 100 "e Dewline 1 31130 B 2800 ECD.CUt - LSYP Lem U1traStar Exploration, LLC RFQ -003 • . ip Me SVVACQ Virtual Hydraulics HOLE CLEANING Mi SW/ACQ ©1995 -2006 M -I L.L C. 750 GPM MD:2500 ft OperatorilltraStar Exploration 'Mark N M -1 LL .C. TVD2500 ft Well NameDewline 1 VIRTUAL HYDRAULI11IDHe Bit Size:12.25 in LooationNorth Slope Date:11/6/2008 CountryAlaska 4 Hole Cleaning UltraStar Exploration Dewline 1 1.00 - ROP 50 It.. — ROP 100 ft/hr — ROP 150 ft/hr Poor Hole Cleaning — ROP 200 ftt 0.75 X -- Fair Hole Cleaning C 0.50 1]) U —_e Good Hole Cleaning O 0.25 Very Good Hole Cleaning — -- 4 00 500 600 700 800 Flow Rate (gal /min) UltraStar Exploration, LLC RFQ -003 � M Mt SWACQ ti Hydraulics / Hole Cleaning: Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 9800' and moving cuttings concentration (MCC) in the annulus while drilling the section. Virtual Hydraulics SNAPSHOT 1 Mi SWACQ ©1995 -2006 M -I L.L. . 450 GPM MD:9800 ft OperatortlltraStar Exploration ° ° ° ' � ` 'Mark a NI LC TVD9800 ft Well Name:Dewline 1 VIRTUAL HYDRIIAULII I * Bit Size9.5 in Location North Slope Date :11/6/2008 CountryAlaska Depti Geometry Density PV (cP) Va Hole Clean Pressure Distribution (ft) MD /TVD Csg OD /I (lb/gal) YP, LSYP (Ib /100ft') (ft/min) Index ( %) (1) on; 100 11.2 11.6 0 10 20 30 0 160 320 VG G F P Bit = 8.1 Ann = 6.4 DS = 85.6 1000 2000 0 2500 9625. Drilling Fluid 2500 8.830 Water -Based Mud 3o00 Mud Weight 11 lb/gal Test Temp 120 °F System Data 4000 Flow Rate 450 gal /min Penetration Rate80 ft/hr Rotary Speed 80 rpm 5000 Weight on Bit 10 1000 lb Bit Nozzles 15- 15- 15 -15 -1 0.0 -0 -0 -( 6000 - Pressure Losses Modified Power Law Drill String 2947 psi 7000 Bit 278 psi 8000 Bit On /Off 100 psi i i Annulus 220 psi + Surface Equip 21 psi , , 9000 U -Tube Effect 47 psi II I Total System 3612 psi ESD ECD *Cut 9800 - 10000 9800 0500, 1 Csg Shoe 11.09 11.4611.55 TD 11.07 11.50 11.59 - ESD - PV g �F ° 5808- V�nran J.1 Fann 35 o -� ECD YP m __ 11000 - ECD +CDI - LSYP To,b Lam 104, 0 Bed VO % 100 F'le -0 8Iw l.MDe UltraStar Exploration, LLC RFQ-003 003 til Q I � a �1� .,1,11 04' II l m c i 4 I , II I I II I II ' Iilik11 I IV r II,,,, IlllI: l lyl l l I 4; • • M� SWACO Virtual Hydraulics HOLE CLEANING ©19952006 M -I L.L.C. 450 GPM MD: 9800 ft Operator: UltraStar Exploration '^''� " ' iic TVD: 9800 ft Well Name: Dewline 1 VIRTUAL NYDRAULICS "YRDN' Bit Size: 8.5 in Location: North Slope Dale: 111W2008 Country: Alaska Hole Cleaning UltraStar Exploration Dewline 1 1.00 — ROP 25 ft/hr — ROP 50 ft /hr — ROP 75 ft/hr � �s` Poor Hole Cleaning _ . :; — ROP 100 ftJhr ' — ROP 125 ft/hr 0.75 -- ROP 150 ft/hr X Fair Hole Cleaning ;\ iT R 0.50 U a) Good Hole Cleaning O 2 0. - - Very Good Hole Cleaning 3 40 360 380 400 420 440 460 480 500 520 540 560 580 600 Flow Rate (gal /min) • vh. Ihl�„ UltraStar Exploration, LLC RFQ -003 Page 1 of 1 ' • • Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Thursday, February 05, 2009 8:28 AM To: 'Bill Penrose' Subject: RE: PTD No. for Dewline #1 Bill, The information is: PTD 208 -195 API: 50- 029 - 23408 -00 -00 Tom From: Bill Penrose [mailto:bill @fairweather.com] Sent: Thursday, February 05, 2009 7:34 AM To: Maunder, Thomas E (DOA) Subject: PTD No. for Dewline #1 Tom, I know Jim Weeks is still working Dewline #1 bonding issues with the Commission and the PTD can't be issued until it's straightened out. However, we need to get the well sign made for location (spud is about three weeks away and the sign will take about 10 days to turn around) and we need a PTD number and API number for it. Are those something you can inform me of at this time? Thanks and regards, Patirew Vice President / Drilling Manager Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907 - 258 -3446 2/5/2009 Page 1 ofk • • Maunder, Thomas E (DOA) From: Alexey Sachivichik [alexey .sachivichik @fairweather.com] Sent: Wednesday, January 14, 2009 2:34 PM To: Maunder, Thomas E (DOA) Subject: RE: Dewline #1 Tom, Yes, you are right. I recalculated all pressures, and it appears BHP = 5662.8 psi and MASP = 4573.8 psi. I've made a corrections in Permit to Drill application and can bring it to your office. Thanks and regards S'aeltetddia Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 office: 907 - 258 -3446 cell: 907 575 7315 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Wednesday, January 14, 2009 1:00 PM To: Alexey Sachivichik Subject: RE: Dewline #1 Alexey, Please recheck the numbers. As I look at the calculation sheet, it appears that the BHP would be 9900 * (0572) = 5662 psi and the MASP would be 4574 psi. The 960 psi value is for the surface hole. Thanks, Tom Maunder, PE AOGCC From: Alexey Sachivichik [mailto:alexey .sachivichik @fairweather.com] - • Wednesday, January 14, 2009 11:14 AM To: Ma , -r, Thomas E (DOA) Subject: RE: line #1 Tom, Thanks for pointing that out. Sorry, it's my mistake. The correct numbers ': eck 17 are: BHP = 4574 psi, MASP = 960 psi. Thanks again Best regards exert' S- .. Drilling Engine- Fairweat - &P Services, Inc. 1/14/2009 Page 1 of 1 • • Maunder, Thomas E (DOA) From: Alexey Sachivichik [ alexey .sachivichik @fairweather.com] Sent: Wednesday, January 14, 2009 11:14 AM To: Maunder, Thomas E (DOA) Subject: RE: Dewline #1 Subject: Thanks for pointing that out. Sorry, it's my mistake. The correct numbers for block 17 are: BHP = 4574 psi, MASP = 960 psi. Thanks again Best regards /Wexee Sae Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 office: 907 - 258 -3446 cell: 907 575 7315 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Wednesday, January 14, 2009 10:56 AM To: Alexey Sachivichik Subject: FW: Dewline #1 Alexey, Here is that note. Tom From: Maunder, Thomas E (DOA) Sent: Friday, January 09, 2009 4:16 PM To: 'Alexey Sachivichik (alexey @fairweather.com)' Subject: Dewline #1 Alexey, I am reviewing the permit application for this well. The values entered in block 17 for the BHP and MASP do not agree with the calculations in the attachments. Would you reconcile the pressures please? Thanks in advance, Tom Maunder, PE AOGCC 1/14/2009 TRANSMITTAL LETTER CHECKLIST WELL NAME - .E //✓. ' PTD# .707195 Development Service ✓ Exploratory Stratigraphic Test Non - Conventional Well FIELD: e POOL: G//y 74/ 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(D, 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 I EU.: PERK` CHEGK T.: Field & Pool UMIAT, UNDEFINED OIL - 842100 Well Name: DEWLINE 1 Program EXP Well bore seg ❑ PTD#: 2081950 Company ULTRASTAR EXPLORATION LLC Initial Class/Type EXP / PEND GeoArea 890 Unit 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 Exploratory well Ivishak target. 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 8 If deviated, is wellbore plat included No Straight hole. 9 Operator only affected party Yes 10 Operator has appropriate bond in force Yes New Bond has just been received from Operator. All other paperwork in. 11 Permit can be issued without conservation order Yes 12 Permit can be issued without administrative approval Yes Appr Date 13 Can permit be approved before 15 -day wait Yes ACS 2/18/2009 14 Well located within area and strata authorized by Injection Order # (put IO# 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 Yes Engineering 19 Surface casing protects all known USDWs NA No known aquifers. Surface casing cemented to surface. 1 1 20 CMT vol adequate to circulate on conductor & surf csg Yes - - 1 21 CMTvol adequate -to tie -in long string to surf csg_ _ No 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 weil(s), _ 25 Ifare- drill, hasa 10 -403 for abandonment been approved NA 26 Adequate wellbore separation proposed _ . Yes Nearest well — 1 -1/4 miles distant. No proximity issues. ; 27 If diverter required, does it meet regulations Yes 28 Drilling fluid program schematic & equip list adequate Yes Maximum expected formation pressure 11.0 EMW. MW planned 11.0 ppg or as needed. Appr Date 29 BOPEs, do they meet regulation Yes TEM 1/14/2009 30 BOPE press rating appropriate; test to (put psig in comments) Yes MASP calculated at 4574 psi. 5000 psi BOP test. • `,� 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 No H2S should not be encountered in virgin formations. Rig equipped with sensors and alarms. 1 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures No This prospect lies adjacent to Prudhoe Bay Field and targets the Ivishak. Geology 36 Data presented on potential overpressure zones NA 37 Seismic analysis of shallow gas zones NA - - - Appr Date 38 Seabed condition survey (if off- shore) - NA _ - _ ACS 12/22/2008 '39 Contact name /phone for weekly progress reports [exploratory only] Yes Alexey Sachivichik - 575 -7315. Geologic Engineering - ' � . c Waiting on Operators Bond (ACS- 12/22/08). Bond received 2/17/09. Permit completed 2/18/09. Commissioner: Date: Co missione . Date C �� oner Date P 0 '1 A CY • • OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format.
