The URL can be used to link to this page

Home My WebLink AboutCO 641Image0 0 •OrderCover• XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. G d 6 4W Order File Identifier Organizing (done) Zlor N Items: ❑ Greyscale Items: ❑ Poor Quality Originals: ❑ Other: Two-sided iuuimumiuu DIGITAL DATA ❑ Diskettes, No. ❑ Other, No/Type: Re,c,nNeeded 1111111111111111111 OVERSIZED (Scannable) ❑ Maps: ❑ Other Items Scannable by a Large Scanner OVERSIZED (Non -Scannable) ❑ Logs of various kinds: NOTES: ❑ Other:: BY: Maria Date: /s/ Project Proofing II I II'I'I I IIII I I III BY: Maria Date: p� rQ 13 /s/ Scanning Preparation x 30 + = TOTAL PAGES J 1 r (Count does not include cover sheet) ,nn BY: Maria Date: �' �/7 1 /s/ Y 1 I Production Scanning Stage 1 Page Count from Scanned File: (Count does include co er sheet) Page Count Matches Number in Scann'ng Preparation: YES NO BY: Maria Date: g 3 13 /s/ n4 p Stage 1 If NO in stage 1, page(s) discrepancies were f f found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I II II II I II II I I III ReScanned IIIIIIIIIIIIII IIIII BY: Maria Date: /s/ Comments about this file: Quality Checked III II�IIIIIIII'IIII 1/17/2012 Orders File Cover Page.doc INDEX CONSERVATION ORDER NO. 641 Milne Point Field Milne Point Unit K-33 Well 1. November 24, 2010 Background Information Confidential attorney -client email located in secure storage INDEX CONSERVATION ORDER NO. 641 Milne Point Field Milne Point Unit K-33 Well fir STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: BY ITS OWN MOTION the Alaska Oil and ) Docket CO-10-23 Gas Conservation Commission, in ) Conservation Order No. 641 accordance with AS 31.05.005(c), ) authorizes resumed production from the ) Milne Point Field Milne Point Unit K-33 Well ) Milne Point Unit K-33 Well November 30, 2010 INTERIM ORDER On November 16th, 2010, BP Exploration (Alaska) Inc. (BPXA) notified the Alaska Oil and Gas Conservation Commission (Commission) that a failed squeeze job in the Milne Point Unit K-33 (MPU K-33) well resulted in communication of hydrocarbons between the Kuparuk and Sag River Formations, effectively commingling production from those formations. BPXA ceased production from the well to conduct diagnostics and determine a path forward. As a result of this decision, oil has been flowing underground within the MPU K-33 wellbore from the higher -pressured Sag River Formation into the lower -pressured Kuparuk Formation. In accordance with AS 31.05.030(b), the Commission has determined that this constitutes potential waste. Pending a public hearing regarding BPXA's actions, pursuant to AS 31.05.030(c) this interim order is necessary to prevent further cross -flow and minimize any continued waste of resources. On November 19th, 2010, the Commission provided BPXA with verbal approval to resume production from MPU K-33. The Commission continues to investigate the circumstances surrounding the cross -flow in this well. Nothing in this interim order precludes an enforcement action under 20 AAC 25.535 or limits the penalties the Commission may impose. NOW, THEREFORE, IT IS ORDERED: Pending further order of the Commission BPXA may return well MPU K-33 to production in order to prevent continued cross -flow of resources from the Sag River Formation to the Kuparuk Formation, and to recover Sag River Formation resources that have already cross -flowed into the Kuparuk Formation. Conservation Order 6410 41 November 30, 2010 Page 2 of 2 2. By December 15th, 2010, BPXA must submit to the Commission a proposed methodology for allocating production between the two formations and for determining when the Sag River Formation resources that have cross flowed into the Kuparuk Formation have been fully recovered. ENTERED at Anchorage, Alaska, and dated November 30, 2010. Daniel T. Seamount, Jr., Chair, Commissioner Alaska OiLand Gas Conservation Commission Oil and Gas Conservation Commission RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or 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 reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[tlhe questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. 0 0 Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201-3557 Ft. Worth, TX 76102-6298 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton 408 18th Street President 6900 Arctic Blvd. Golden, CO 80401-2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K&K Recycling Inc. Land Department 795 E. 94th Ct. P.O. Box 58055 P.O. Box 93330 Anchorage, AK 99515-4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Jill Schneider Gordon Severson P.O. Box 69 US Geological Survey 3201 Westmar Circle Barrow, AK 99723 4200 University Drive Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Cliff Burglin Refuge Manager 399 West Riverview Avenue 319 Charles Street P.O. Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99701 Soldotna, AK 99669-2139 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 0 0 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, December 01, 2010 9:53 AM To: Aubert, Winton G (DOA); Ballantine, Tab A (LAW); Brooks, Phoebe; Davies, Stephen F (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Johnson, Elaine M (DOA); Laasch, Linda K (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Shartzer, Christine R (DOA); Aaron Gluzman; Bettis, Patricia K (DNR); caunderwood@marathonoil.com; Dale Hoffman; David Lenig; Gary Orr; Jason Bergerson; Joe Longo; Lara Coates; Marc Kuck; Mary Aschoff; Matt Gill; Maurizio Grandi; Ostrovsky, Larry Z (DNR); Richard Garrard; Sandra Lemke; Talib Syed; Tiffany Stebbins; Wayne Wooster; William Van Dyke; Woolf, Wendy C (DNR); (foms2@mtaonline.net); (michael.j.nelson@conocophillips.com); (Von. L. Hutchins@conocophillips.com); AKDCWellIntegrityCoordinator; Alan Dennis; alaska@petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Bill Penrose; Bill Walker; Bowen Roberts; Brad McKim; Brady, Jerry L; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; carol smyth; Chris Gay; Cliff Posey; Crandall, Krissell; dapa; Daryl J. Kleppin; Dave Matthews; David Boelens; David House; David Steingreaber; ddonkel@cfl.rr.com; Deborah J. Jones; Delbridge, Rena E (LAA); Dennis Steffy; Elowe, Kristin; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; gspfoff; Harry Engel; Jdarlington Qarlington@gmail.com); Jeanne McPherren; Jeff Jones; Jeffery B. Jones (jeff.jones@alaska.gov); Jerry McCutcheon; Jill Womack; Jim White; Jim Winegarner; Joe Nicks; John Garing; John Katz; John S. Haworth; John Spain; John Tower; Jon Goltz; Judy Stanek; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kim Cunningham; Larry Ostrovsky; Laura Silliphant; Marilyn Crockett; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); Mark Kovac; Mark P. Worcester; Marquerite kremer; Michael Dammeyer; Michael Jacobs; Mike Bill; Mike Mason; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; nelson; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Paul Decker (paul.decker@alaska.gov); Paul Figel; PORHOLA, STAN T; Randall Kanady; Randy L. Skillern; rob.g.dragnich@exxonmobil.com; Robert Brelsford; Robert Campbell; Rudy Brueggeman; Ryan Tunseth; Scott Cranswick; Scott Griffith; Scott, David (LAA); Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Steve Lambert; Steve Moothart; Steven R. Rossberg; Suzanne Gibson; tablerk; Tamera Sheffield; Taylor, Cammy O (DNR); Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjr1; Valenzuela, Mariam; Vicki Irwin; Walter Featherly; Will Chinn; Williamson, Mary J (DNR); Yereth Rosen Subject: co641 Interim Order Milne Point Unit K-33 Well Attachments: co641 Interim Order.pdf ;#1 Roby, David S (DOA) From: McEntyre, Scott R [Scott.McEntyre@bp.com] Sent: Wednesday, November 24, 2010 5:01 PM To: Roby, David S (DOA) Cc: Emembolu, Emeka; De'Ath, Alex (ANC) Subject: RE: Commission Regulations Hi Dave, We are planning to start a flow back on well MPK-33 as per our normal ESP start-up procedure over the coming weekend. We will keep you updated on the status of the well as we have new events to report. If you have any questions, please feel free to contact us via email or phone. Best regards, Scott Scott R. McEntyre Milne Point Unit Lead PE Mobile: (907) 223-7963 From: De'Ath, Alex (ANC) Sent: Friday, November 19, 2010 10:35 AM To: 'dave.roby@alaska.gov' Cc: 'cathy.foerster@alaska.gov'; Emembolu, Emeka; McEntyre, Scott R Subject: Re: Commission Regulations Dave, Many thanks for the notification and we will proceed to bring the well back online. Please let us know the requirements for the hearing and we will continue to keep you informed. Regards Alex From: Roby, David S (DOA) <dave.roby@alaska.gov> To: De'Ath, Alex (ANC) Cc: Foerster, Catherine P (DOA) <cathy.foerster@alaska.gov> Sent: Fri Nov 19 10:13:44 2010 Subject: RE: Commission Regulations Alex, The Commission has the authority to take immediate action to conserve resources and prevent the waste of oil and gas resources. Pending a hearing under 20 AAC 25.540, the Commission will issue an interim order to allow the well to return to production to prevent the further cross -flow of oil from the Sag River Formation to the Kuparuk Formation and start to recoup the oil from the Sag River Formation that has already flowed into the Kuparuk Formation. The Commission is in the processo0preparing a formal interim order, butcosider this email to be "verbal' permission to return the well to production to prevent the continued cross -flow of production. Regards, Dave Roby (907)793-1232 From: De'Ath, Alex (ANC) [mailto:deatha@bp.com] Sent: Thursday, November 18, 2010 1:14 PM To: Roby, David S (DOA) Subject: RE: Commission Regulations Thanks. Alex From: Roby, David S (DOA) [mailto:dave.roby@alaska.gov] Sent: Thursday, November 18, 2010 11:00 AM To: De'Ath, Alex (ANC) Subject: Commission Regulations Alex, Here are the Commission regulations on downhole commingling: 20 AAC 25.21.5. Commina in2 of production and infection into two or more pools• (a) On the surface, the production from one pool may not be commingled with that from another pool except if the quantities from each pool are determined by monthly well tests or by another method of determining pool production approved by the commission. (b) Commingling of production within the same wellbore from two or more pools is not permitted unless, after request, notice, and opportunity for public hearing in conformance with 20 AAC 25.540. the commission (1) finds that waste will not occur, and that production from separate pools can be properly allocated; and (2) issues an order providing for commingling for wells completed from these pools within the field. (c) Injection into two or more pools within the same wellbore is not permitted unless, after request, notice, and opportunity for public hearing in conformance with 20 AAC 25.540. the commission (1) finds that the proposed injection activity will not result in waste or damage to a pool, and that injection volumes can be properly allocated; and (2) issues an order providing for injection into wellbores completed to allow for simultaneous injection into two or more pools. M And GOR Waivers: 20 AAC 25.240. Gas -oil ratio limitations (a) An oil well may not be produced if the gas -oil ratio of the well exceeds the original solution gas -oil ratio of the crude within the producing pool by more than 100 percent. (b) Upon written application by an operator, the commission will, in its discretion, waive the limitation in (a) of this section if, (1) an enhanced recovery project operates in the pool from which the well is producing; (2) produced gas is being returned to the same pool; or (3) acquisition of pool performance data is necessary to determine an optimum reservoir management program. (c) The commission will, in its discretion, grant exceptions to the limitation in (a) of this section for conditions other than those specified in (b) of this section only after application, notice, and an opportunity for public hearing in accordance with 20 AAC 25.540. Dave Roby Reservoir Engineer Alaska Oil and Gas Conservation Commission (907)793-1232 3 0 0 Roby, David S (DOA) From: Roby, David S (DOA) Sent: Friday, November 19, 2010 10:40 AM To: 'De'Ath, Alex (ANC)' Cc: Foerster, Catherine P (DOA); Emembolu, Emeka; McEntyre, Scott R Subject: RE: Commission Regulations Alex, Will do. Let us know if anything changes with status/condition of the well. Regards, Dave Roby (907)793-1232 From: De'Ath, Alex (ANC) [mailto:deatha@bp.com] Sent: Friday, November 19, 2010 10:35 AM To: Roby, David S (DOA) Cc: Foerster, Catherine P (DOA); Emembolu, Emeka; Subject: Re: Commission Regulations Dave, McEntyre, Scott R Many thanks for the notification and we will proceed to bring the well back online. Please let us know the requirements for the hearing and we will continue to keep you informed. Regards Alex From: Roby, David S (DOA) <dave.roby@alaska.gov> To: De'Ath, Alex (ANC) Cc: Foerster, Catherine P (DOA) <cathy.foerster@alaska.gov> Sent: Fri Nov 19 10:13:44 2010 Subject: RE: Commission Regulations Alex, The Commission has the authority to take immediate action to conserve resources and prevent the waste of oil and gas resources. Pending a hearing under 20 AAC 25.540, the Commission will issue an interim order to allow the well to return to production to prevent the further cross -flow of oil from the Sag River Formation to the Kuparuk Formation and start to recoup the oil from the Sag River Formation that has already flowed into the Kuparuk Formation. The Commission is in the process of preparing a formal interim order, but consider this email to be "verbal" permission to return the well to production to prevent the continued cross -flow of production. Regards, Dave Roby (907)793-1232 • From: De'Ath, Alex (ANC) [mailto:deatha@bp.com] Sent: Thursday, November 18, 2010 1:14 PM To: Roby, David S (DOA) Subject: RE: Commission Regulations Thanks. Alex From: Roby, David S (DOA) [mailto:dave.roby@alaska.gov] Sent: Thursday, November 18, 2010 11:00 AM To: De'Ath, Alex (ANC) Subject: Commission Regulations Alex, Here are the Commission regulations on downhole commingling: 20 AAC 25.215. Commingling of production and iniection into two or more pools. (a) On the surface, the production from one pool may not be commingled with that from another pool except if the quantities from each pool are determined by monthly well tests or by another method of determining pool production approved by the commission. (b) Commingling of production within the same wellbore from two or more pools is not permitted unless, after request, notice, and opportunity for public hearing in conformance with 20 AAC 25.540, the commission (1) finds that waste will not occur, and that production from separate pools can be properly allocated; and (2) issues an order providing for commingling for wells completed from these pools within the field. (c) Injection into two or more pools within the same wellbore is not permitted unless, after request, notice, and opportunity for public hearing in conformance with 20 AAC 25.540, the commission (1) finds that the proposed injection activity will not result in waste or damage to a pool, and that injection volumes can be properly allocated; and (2) issues an order providing for injection into wellbores completed to allow for simultaneous injection into two or more pools. And GOR Waivers: 20 AAC 25.240. Gas -oil ratio limitations 2 a An oil well may not be roduced if the as -oil ratio of the well'L�xceeds the original solution as -oil () Y P gg ratio of the crude within the producing pool by more than 100 percent. (b) Upon written application by an operator, the commission will, in its discretion, waive the limitation in (a) of this section if (1) an enhanced recovery project operates in the pool from which the well is producing; (2) produced gas is being returned to the same pool; or (3) acquisition of pool performance data is necessary to determine an optimum reservoir management program. (c) The commission will, in its discretion, grant exceptions to the limitation in (a) of this section for conditions other than those specified in (b) of this section only after application, notice, and an opportunity for public hearing in accordance with 20 AAC 25.540. Dave Roby Reservoir Engineer Alaska Oil and Gas Conservation Commission (907)793-1232 0 Roby, Uavid S (DOA) From: McEntyre, Scott R [Scott.McEntyre@bp.com] Sent: Thursday, November 18, 2010 5:41 PM To: Schwartz, Guy L (DOA) Cc: De'Ath, Alex (ANC); Roby, David S (DOA) Subject: RE: MPK-33 test chart for Kuparuk Sqz perfs. Attachments: MPK-33 Cement Squeeze Pressure Test 9 SEP 20102IP Guy, Attached, please find a scanned copy of the test chart for the 7" casing test done on 9 September 2010. I hope this helps. Please feel free to send any additional questions or requests that arise. Best regards, Scott Scott R. McEntyre Milne Point BEK Pad Engineer Mobile: (907) 223-7963 From: De'Ath, Alex (ANC) Sent: Thursday, November 18, 2010 4:45 PM To: McEntyre, Scott R Subject: FW: MPK-33 test chart for Kuparuk Sqz perfs. Scott, Could you pass this on please? Thanks Alex From: Schwartz, Guy L (DOA)[mailto:guy.schwartz@alaska.gov] Sent: Thursday, November 18, 2010 2:00 PM To: De'Ath, Alex (ANC) Cc: Roby, David S (DOA) Subject: MPK-33 test chart for Kuparuk Sqz perfs. Alex, Could you email a scan of the test chart for the 7" casing test done on 9/9/10 to confirm the Kuparuk sand sqz ?? Thanks in advance. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) • • Roby, David S (DOA) From: McEntyre, Scott R [Scott. McEntyre@bp.com] Sent: Thursday, November 18, 2010 2:33 PM To: Roby, David S (DOA); Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Cc: De'Ath, Alex (ANC); Emembolu, Emeka Subject: RE: Milne Point K-33 discussion Attachments: MPK-33 Way Forward (AOGCC).ZIP; MPK-33 MPE-31 Flowback Samples Analysis.ZIP; MPK-33 09-07-10 WO.ZIP; MPK-33 09-09-10 WO.ZIP Hi Dave, Steve, and Guy, Thank you again for the opportunity this morning to discuss a way forward on MPK-33. To follow up from our discussion, please find the attached electronic copy of the slides and the additional information requested (chemical composition analysis of the flow back samples and pressure test on the Kuparuk cement squeezed Perforations during last RWO). Electronic version of presentation: «MPK-33 Way Forward (AOGCC).ZIP>> Chemical composition of flow back samples. This laboratory document also contains analysis of samples from well MPE- 31 which is currently producing from the Schrader Bluff formation). «MPK-33 MPE-31 Flowback Samples Analysis.ZIP>> Drilling report documenting pressure test on cement retainer to 1000 psig. This was a test of the cementing equipment, and not a test of the squeezed perforations themselves. «MPK-33 09-07-10 WO.ZIP>> Drilling report documenting pressure test of casing and squeezed perforations to 500 psig after milling through cement plug. «MPK-33 09-09-10 WO.ZIP>> Please feel free to contact myself or Alex De'Ath with questions. Best regards, Scott Scott R. McEntyre Milne Point Unit Lead PE Mobile: (907) 223-7963 From: De'Ath, Alex (ANC) Sent: Tuesday, November 16, 2010 2:47 PM To: dave.roby@alaska.gov Cc: steve.davies0alaska.4ov; guy.schwartz6balaska.aov; McEntyre, Scott R Subject: Milne Point K-33 discussion David, 0 Emeka just let me know that he'd ussed K-33 with you and we appreciate the opportunity to meet this Thursday, 18th November. Please let us know the meeting location, I understand the time will be 10:30am. Scott McEntyre (Lead Petroleum Engineer) and I will attend. Many thanks Alex De'Ath de ath, m MPK-33 Sag River & Kuparuk Isolation Plans on Objective is to agree to a plan to isolate Sag River and Kuparuk perforations in well MPK-33. This will include discussion of the following items: Ultimate obJective is isolation of Sag River and Kuparuk River 1 g p pools Permission to temporarily commingle production Schedule and time frame Brief agenda for slide pack is as follows: Brief well history for MPK-33 0 Recent events for MPK-33 Options for forward path on MPK-33 Estimate of oil cross -flowed from Sag River into Kuparuk pool 18 ADL355021 19 (• • • ZI-355016 _1 1 1 16 ADL355018 ADL35501 CF� ` tt� 3 2 _._. ADL38$_�15 -. ADLO47434 ADL047433 MP18-01 - LIPL-01 - MPG23 - 4DL047432 MPG 01 1 SI P32.14- 4a 4 5 1._.� ADLOH514 4Q F1- ADL315948 ADLO25 51 13A - ADL047437 ADLCU7.138 M B-01 - SIM 32-14A - i Sag Rwc, PaNapatrig Area 13 1-d PA Bounaary ADL025517 AL�I.025�s0E; = PA [orlon/ Mine Part Utt Vrit Boundary �.� VraBorndary 23 N ADOG01 � L ill I MPK-33 drilled through Kuparuk to Sag River Depth KAVEA32- 5 - g 27 ADL025518 ACJ1.028^<31 AQU28232 1-1 i — CASCAp -01 - 1 4 !' 2,' 261 i A.DL860110 i.QL475133 PK-MI-3751 a.---.—.----.--- 9 MPK-33 Sag River Pool � .. .. Existing SAG Wells IK 1 Existing well, SH location ++NIK-02 NIK Sidetrack -ttNIK 03PB3 - ADL355021 ADL355616 -- Horizontal Producer NIK-03 18 19 �" Royalty: 12.5% Horizontal Injector NPSL: 40.0°I° NOR 160 Acre Buffer PA Existing SRPA ADL35501 "'PAPF 3ti. F-Ft MP33 ADL35501 Leases 16 15 MPF--3 Royalty: 12.5% R5E R,G T76N Milne Point Unit NPSL: 30.0%- T;'f; �IUE R11E T13N ADL380235 ADL025509 ADL041434 AD1047433 AD[ 047132 22 10 3 DAF� 1 Royalty:20.0% MPL-01 A4Pr- 1 NPSL: 0.0% I,IPc-r 1 `$*SIMP32-14 BEECHYPT-,� ADL025514 ADL025515 11 12 MPE-13A� ADL047430 6� MPE' h4F'.n-D1 MPB-01 �� MPK-33 Drilled into Small • Local Sag River Pool Except where noted I�.a,,.E�.�=��-�� , Royalty is 12.5%, NPSL is 0.0% ..L025517 ADL025906 ADL025518 ADL0211231 8- ADL028232 � f 27 13 14 9 T13N R9E R19E R1®E R11E .. R9E R19E R 19EFRI � R11ER72ET12NqQCAS;ADE-01 ADL380109 AMPS-90 23 ADL375732 L MPK-33-+ 26J Milne Point Unit ;;Z �iF44�-- MPK-33 2-7A' FMC Hanger V 3• LH AOTe 2s ctw H EPv DIM* cow. rcaang 112' 9 SO5" 41) ppf LaD —g 8886' Koo a 360 Max Hole A-4e S5' Q 3640' WO AIgie tV Deb - 7. Wax ar3 - 4.34' C 731 V MD 2 718" 8.5 ppf. L-W. 8 rd EUE (log. ( drift ID = 2.347", cap. = D.DD592 bpf 1 7" 28 ppf. L-W, St- prod. casing ( drift ID = 0. 151 cap. = 0.D383 bpi) I; cap. of IA w) tbg inside = D.02758 bpr) Stimulation Summary Perforation Summary 1W 1-- CAMCL 01129f97 see SPF IN." 1TNU) 4,5' 5 92SO-ON 70M'-71195' 3 3W • 4 9305 - 9316 7095'-7105' 3 3t9" S 9328 - 9334 711T-7123' -wu amml w Sm u meger PoweJe 9— IS ode, 75 to G' 1S5a eeelek Aaa itkined Sag RYe PerbrAx w: `.+e! SPF inlrxai 4.5' 5 113TC-1139t' 91439162 (-,-V KB El— = (51.a (N27E) Orig. GL Elev. = 2T8 (N27E) Ong_ KB to BP = 19-8 (N4ES) Camr:P 2-7d8' x 1- 88 sidepocket KBMM GLM Before RWO in September 2010 Camco 2-710" x r 8924' s Jepocket KBMM GLM 2-718" XN nipple QD 2.205-) Pump. 16D P11 Coated STG. Model - SXD 9080' Gas Sepa-Wr MASTER GoatLW Pon make 9,D95 MD - 6&W TVD Tandem Seal Section G503 08 UTILT 315,139 PFSATSA 9103' Mot., 152 HP, 2325 —ft, 9117' 40 amp. Model KMH PumpMale XTO wdO fin 9131' centrakzer and arcade k#ake 9,131' MD - 6927 TVD T ®ridge Plug 932U 7" HE-- &WW Pkq i 1341- 7' final collar (PBTD) 11483' 726 WL-eo 87Rs I 11525' DATE REV-5V C-'IWJENTS oa'13�7 kvo ESPca,x=�� -e� MILNE POINT UNIT 02'02 M.taS WELL K-33 04 oarc9 rwCo^uersion IT,— S a Rica r m Kupand 4ES API NO: 50.029-22729 06r2MI B. Hasebe RWO Nab-4ES 05R11104 Lee Hulme RWO NW bays 4 ES 08.O9f0e Lee Hulmier RWO Nabo s 3S BP EXPLORATION (AK) ASK!"fY7Ni1P mncomsK 92.7WMW HMW W'3' LH Aone 93'CJYIRR1rpew (aarueercm" 2' After RWO in September 2010 5•P•4[ppf ,-K—N bHdZ , K01 $ 3W Max mxe Ange.: 55' a 3w. ray MR, pem - 7• Max DLS -4.34• Q 7311' MD 2 W13" 6.5 ppf. L-80, 8 rd EUE tbg. ( drift ID = 2.347", cap. = 0.00592 bpi) 7" 26 prit. L-WBiro. prod. casig ( drift ID = 6. 151", cap. = 0-0383 bpf ) { cap. of IA w7 tng inside = 0.02758 bpi) ON, KB El— = 81.8 (N27E) Ong. GL El— = 27.8 tN27E) Ong. KS to 8F = 19.8 tWESJ cameo 2-7'E• x 1- 171 �,DMG-M-2 GLM entnk ft Heat trace 3228 Capillary Tube Cidameo 2-7nr x 1-M- 11095• se iocke( KBM2 GLM Stimulation Summary 2-718-XN nWie (ID 2 2501 11248` Perforation Summary Pump, 118-G12 PMSSD 11270' Ref log: GRfCC L OV29f97 _ sma saF xfenal i7va1 - 4.s s 9a9D-9305 ;(ne'-7nss' Gas Separrrror GtsFlx Hill11291' b 3ra"' '-71D5' kllare 11 VMD-9060'TVD a'e• • 4 932e - 9a3a ;117a 1z3 Tandem Seal Section 1129fi' GSB3DBUTA.T 'srbt N2701 ar SIM-D"W P.-Ile' 91- Motor, 75 H P, 136D volt- i5 Dw 75 a G' 1!, a- revert 34 amp, Model KUH 11310' Sag Rner Pei(xaStxX r� i Ph —nix XTO wdO G. 11318' Sim SPF In@Ny 'Di ` centralizer I Irfake ti319' ka7- 905T TVD J.j 6 11375-i139S' 4143ii52 7" float collar (PBTD; 11483' 7-25 WL-D 5TRS 11525' t'.1'1TE REV. SV OOMMENTS MILNE POINT UNIT K-33 API NO: 50-029-22729 )n1M7 ` MDO M Unae ESP4-ES YWELL Di:02'99 JWS conversion hem Sad Ricer to Kew 4ES O829AD1 B-Hasebe RWO Nabors 4ES W'Moe lee Home RWO fLT6cSx 3S BP EXPLORATION (AK) 09114MD J_Pt3i RWO ors 071 E Brief Well History of MPK-33 IF] Y Sag Production: • 93,500 stbo produced • Watercut average —5% • 1280 scf/stbo GOR average • Last production 19 APR 1998. Kuparuk C, B Production • —93% Watercut when shut-in. i Oil Rate (bbls) � f4`b'ater Rate (bbls) m m-A Gas Rate (msefd) -W On-Linei0ff-Line C m • i PK-33 Recent Events EGU KPAD 33 6000 00 - 5 Aug 2010, Tract Operations granted from Department of Natural Resources. 18 Sep 2010, RWO completed i E f � Kuparuk Perforations Squeezed • OM 3C'010 10:46:59 P.k4 238.40 Sag reservoir accessed and re -perforated. Sag Reservoir found re -pressured to seawater gradient (4000 psig at 8750' 4000.00 TVDSS Datum) 24 Sep 2010, Initial ESP Start-up experienced slugging and well clean-up. M Ofl3r_'01010:46:59AM 1 Oct 2010, Second ESP Start-up experienced more slugging and well clean-up, and was __3.D023____ Extrapolated Kuparuk stopped due to climbing ESP motor Reservoir Pressure 2469 psig temperature and increasing flowing bottom 2000.00 hole pressure. Most likely point where 4 Oct 2010, Noticed static bottom hole Kuparuk cement breaks pressure was significantly lower when shut-in down: BHP increases. after second start-up. (1 st indication of cross - flow). 0,13,'2010 10:46:5 792.6661 7 Oct 2010, Obtained temperature log. OM3r'0101046594VA (confirmation of cross -flow) 0.00 11:00:52 11'' ""'„'°'` 20 Oct 2010, Rig has left Milne Point Unit and oM Value Unity is scheduled to return on 1 January, 2011. "Hist.KPAD PI_44233.F_CV K-33 TUBING PRESSURE i Hist.KPAD.PI_44333.F_CV K-33 BOTTOM HOLE PRESS 3 !Hist.KP.AD.11 44033.E C K-33 ESP C;tIRPENT -1 Hist.KPAD.SI_44033.F_CV K-33 ESP SPEED 0 Hist.KPAD.TI 44333.F CV K-33 PUMP MOTOR TEMP 2 Temperature Log to .Confirm Cross Flow 0 0 1000 2000 3000 0 H 4000 5000 CL 6000 ' 7000 8000 9000 10000 MPK-33 Temp vs Depth Temperature deg F 50 100 150 200 250 300 350 400 450 Kuparuk Perforations Sag River Perforations Temperature Water -flow log was not attempted because it was unlikely to quantify volume of cross flow due to very low water cut in Production from the Sag formation. 9 10 ti 'ward for MPK-33 Priorities for all: - Reserves recovery - Production accounting - Activity risk management w0#1 t RWO#2to -ve 2 RWO's I�R ate Sag' Prod Kup r isolate Kup & — Prod Sag -ve Additional activity risk 30 day hearing prod Kup, prod Sag +ve Reserves recovery NO Consider LCM Permission to to mitigate x- Produce Now ,Commingled? NO YES Permission to produce ommingled now;> YES Produce until Kup x-flow is recovered RWO to isolate Kup & prod Sag Prod Sag +ve Reserves recovery +ve 1 RWO Produce well Jan RWO with drawdown on Kup & Sag Produce until Jan _ RWO (Sag x-flow _ RWO to isolate Prod Sag -ve Reserves recovery to Kup not Kup & prod Sag +ve 1 RWO recovered) J Produceausntil ESP ` X-flow to Ku YES p RWO to isolate j Prod Sag +ve Reserves recovery recovered? Ku- & -r-' Sag +ve 1 RWO NO -- Key questions: - can we produce commingled now? - if not is it likely to get permission to r produce commingled? If so when? p g RWO#1 to isolate Sag & Prod Kup RWO#2 to isolate Kup & ~I Prod sag ve z Rwo's -ve Additional activity risk prod Kup prod Sag — +ve Reserves recovery Method to Estimate Cross-flow Volume EGU 6000.00 — 4000 2000 KPAD_33 AutoScale Limits i Close Draw down on Sag Kuparuk P.I. . Injection differential Sag P.I. into Kuparuk Measured Sag Reservoir Pressure Draw down on Sag ` I Bottom Hole Pressure, static cross flow Injection differential into Kuparuk Extrapolated Kuparuk Reservoir Pressure @ AllDHPG Depth K-33 TUBING PRESSURE Hist.KPAD.PI 44333.E C'V K-33 BOTTOM HOLE PRESS ,HI9t.R.PAD II_440= J.F_C,V K-33 ESP CURRENT Hist.KPAD.SI 44033.E CV V-33 ESP SPEED HISt.KPAD.TI 44333.E cV K-33 PUMP MOTOR TEMP 1 1:00:52 AM 1 1:00:52 AM 10/8/2010 10128/2010 Value Units AVG MAX 192.4300 PSIG 109 9174 1500.0000 2987.00 PSIG 2768.24 6000.00 -0,02 AMPS 0.53 5000 0.07 Hz 4.04 65.00 238.72 DEGF 240,51 300.00 Volume Estimate: Sample Calculatio ............ Estimated Rate of Cross -Flow Formation Historical Productivity Index (bpd/psi) Extrapolated Reservoir Pressure to Gauge Depth (9,026' TVD SS) Calculated Liquid Cross -Flow Rates Historical Low I Historical High Flow back Pressure I Depth (TVD SS)_j Depth (MD) Historical Low Historical High IFlowback Kuparuk 3 1 5 0.56 2469 9026 11318 -1594 1 -2656 1 -300 Sag Kuparuk + Sag 0.08 1 0.5 1 0.30 4000 3000 1 9026 1 9026 1 11318 1 11318 80 1 500 1 300 Estimated Volume of Cross -Flow Date Cross Flow Liquid Rate MPK-33 Shut-in, 10/4/2010 300 Cross -Flow Started Cross -Flow Stopped 12/1/2010 Scenarios to Recover Volume of Cross -Flow Kuparuk PI (bpd/psi) Kuparuk Reservoir Volume to Pressure (psig at Recover from Gauge) Kuparuk (bbls) 0.56 2,469 17,195 Cross Flow Notes: Volume 17,195 Started with Sag P.I. seen during initial flow back and then back - calculated partially open Kuparuk P.I. required to balance flow for shut-in condition. Days Required at BHFP to Recover Cross -Flow Volume BHFP 2200 2100 2000 Days Required 1 113 83 65 • Assumed oil gradient of 0.34 psi/ft to extrapolate reservoir pressure. • Draw down and differential pressure were calculated using initial values. These will give a large estimate of cross flow volume, as reservoir started equalizing as soon as cross flow started. As pressure equalizes, the cross flow rate will decrease. 10 Objectives and AgendA& Objective is to agree to a plan to isolate Sag River and Kuparuk perforations in well MPK-33. This will include discussion of the following items: Permission to temporarily commingle 0 Ultimate objective is isolation of Sag River and Kuparuk River pools Schedule and time frame Brief summary of topics from slide pack is as follows: Brief well history for MPK-33 Recent events for MPK-33 Options for forward path on MPK-33 Estimate of oil cross -flowed from Sag River into Kuparuk pool BACK-UP SLIDES n • MPK-33 Historical Productivity Range ........... .. 10.00 9.00 8.00 7.00 a LL N 6.00 0 C9 v 5.00 v c a a 3.00 2.00 1.00 0.00 MPK-33 111101101 IN kil 19111101 IN IN IN kF1111111111111 MOVIE rn of m o� o 0 0 0 0 0 0 0 0 6 0 � M 7 cD t0 00 � M � c0 fD 00 5000 4500 4000 3500 2 3000 a m 2500 aN, a` 2000Cn m Ix 1500 1000 600 0 0 MPK-33 BHL in Kuparuk Formation Geology Conn., Vol Wells Strategy\ Actions Log 12 D 11 C/ 10 B8 9 /V 8 7 6 5 4 3 A2 2 AI' M a EN U1 M SWAC 5950 NORTH COURSE DRIVE, HOUSTON, TX 77072 ANALYTICAL SERVICES LABORATORY 281 561-1383 FAX 281 561-7240 Project Number: AS166-1022-2010 Analyst: Marc Churan/N. Shakib Date : 10-27-2010 Sample Identification: Fluid samples from BP, MPU E-31 and MPK-33, Milne Point Alaska Lab Master # : 20103566 Request: Composition of Fluids Samples Testing Procedure : Percent solids, Percent extractable organics, X-ray Diffraction and CEC, Gas chromatography/mass spectrometry (GC/MS), ICP-MS, Titration, Infrared (FTIR) Nine samples were received. Four samples were from MPU E-31 all taken on 9/29/2010. Five samples were from MPK-33 taken on 10/1/2010 and 10/2/2010. Observations and conclusions for the MPU E-31 samples: 1. The first three samples have very similar water/oil/solids content. There is only partial separation of the oil and water (black with sulfides) after setting for 24 hours. High speed centrifuge @10,000 rpm resulted in separation of oil, clear water, and trace of solids. 2. The fourth sample is mostly water (black with sulfides) and very little oil. 3. The oil phase from all four samples is essentially the same. There is only a small amount of normal paraffins from C7 to C15. Most of the hydrocarbons are cyclic and aromatic compounds with some hopanes (biomarkers) present. FTIR analysis of the oil from these samples shows possible trace of esters to also be present. 4. The water phase from the four samples has very similar salt brine content. 5. Possible PHPA polymer in the water phase of these samples, also some peaks that match KLA-GARD 6. The solids are mostly quartz, calcite, siderite (iron carbonate) with some mixed clays. Observations and conclusions for the MPK-33 samples: 1. The first sample is mostly oil with only a small amount of water and solids present. 2. The next three samples are mostly water with about 10% oil. These samples showed significant separation when left undisturbed resulting in a turbid water layer and an oil layer on top. High speed centrifuge resulted in an oil layer, clear water layer, and trace of solids. 3. The last sample taken 10/2/2010 also shows separation of the oil and water when left undisturbed. 4. The oil phase from all five MPK-33 samples is essentially the same. This is typical crude oil with strong C7 to C38+ normal paraffin peaks 5. The water phase from the first four samples is very similar with higher salt content than seen in the MPU E-31 samples. The last sample is mostly sodium chloride brine with significantly lower salt content than the 10/1/2010 samples. 6. No polymer was detected in the water phase of these samples 7. The solids in the 10/1/2010 samples are mostly iron carbonate (siderite), iron oxides, with some quartz, barite, and mixed clays. The sample collected on 10/2/2010 is mostly quartz, iron carbonate, iron oxides, with some calcite and mixed clays. Copies to: Kelly Haag Signed: Marc Churan Ray Figueroa Jim Cucullu Page 1 of 8 Notice: This report is limited to the described sample tested. Any person using or relying on this report agrees that M-1 L.L.C. and its affiliates shall not be liable for any loss or damage, whether due to act or omission, resulting from such report or its use. Test Data: —MPU E-31 9129/10 6:45 pm 36 bbls MPU E-31 9/29/10 6:50 pm 50 bbls 480 MPU E-31 9/29/10 7:50 pm 80 bbis 48° MPU E-31 9129/10 8:35 pm 100 bbis 480 Appearance Black fluid. No apparent separation Black fluid, No apparent separation Black fluid, No apparent separation black fluid, (mostly black water Water 57.5 wt% 59.2 wt% 67.3 wt% 98.6 wt% Oil 42.1 wt% 40.4wt% 32.5 wt% 1.3 wt% Solids 0.4 wt% 0.3 wt% 0.2 wt% <0.1 wt% Analysis of Oil Phase GC/MS of oil C7 to C30+ hydrocarbons, low paraffin, high cyclic and aromatic with some hopanes. See Figure 1 C7 to C30+ hydrocarbons, low paraffin, high cyclic and aromatic with some hopanes. See Figure 2 C7 to C30+ hydrocarbons, low paraffin, high cyclic and aromatic with some hopanes. See Figure 3 C7 to C30+ hydrocarbons, low paraffin, high cyclic and aromatic with some hopanes. See Figure 4 FTIR (Infrared) Aliphatic and aromatic hydrocarbons with possible small ester peak Aliphatic and aromatic hydrocarbons with possible small ester peak Aliphatic and aromatic hydrocarbons with possible small ester peak Aliphatic and aromatic hydrocarbons with possible small ester peak Analysis of Solids XRD of Solids Quartz, calcite, siderite, iron oxides, with mixed clays Quartz, calcite, dolomite, siderite, iron oxides, with mixed clays Quartz, calcite, siderite, iron oxides, with mixed clays Not enough solids for analysis Analysis of Water Phase Chloride, m /L 34,000 34,000 35,000 34,000 Calcium, m /L 240 270 260 260 Magnesium, m /L 140 140 140 140 Sodium, m /L 21,000 20,900 21,000 20,300 Potassium, m /L 4,000 4,300 4,400 4,000 Iron, m /L < 0.001 < 0.001 < 0.001 0.1 Silica, m /L 16 11 11 11 Aluminum, m /L < 0.001 < 0.001 < 0.001 < 0.001 Barium, m /L 0.7 0.8 0.8 1 Manganese, m /L 0.5 0.4 0.4 0.4 Strontium, m /L 7 8 8 9 Bromide, m /L 740 810 780 760 Sulfate, m /L < 5 11 12 < 5 Phosphate, m /L 32 26 17 < 5 Nitrate, m /L 70 40 35 75 Boron, m /L 3 2 2 2 HCO3, m /L 32 26 17 < 5 CO3, m /L 70 40 35 75 OH, m /L 3 2 2 2 Polymer (by FTIR) Possible PHPAt I Gard Possible PHPA Kla-Gard Possible PHPA Possible PHPA Copies to: Kelly Haag Ray Figueroa Jim Cucullu Signed: Marc Churan Page 2 of 8 Notice: This report is limited to the described sample tested. Any person using or relying on this report agrees that M-1 L.t_.c- and its affiliates shall not be liable for any loss or damage, whether due to act or omission, resulting from such report or its use. 0 _._ MPK-33 10/1 /2010 11:45 pm 36 bbis 240 . MPK-33 10/1/2010 12:30 pm 50 bbis 24' MPK-33 10/1 /2010 2:00 pm 80 bbis 400. _ MPK-33 10/112010 2:45 pm 100 bbis 30° MPK-33 10/212010 1 11,30 am 300 Appearance Black oily fluid; No apparent se aration Turbid fluid with oil layer on top Turbid fluid with oil layer on top Turbid fluid with oil layer on top Turbid fluid with oil layer on top Water 2.4 wt% 89.3 wt% 87.7 wt% 93.9 wt% 63.3 wt% Oil 97.0 wt% 10.4 wt% 12.1 wt% 6.0 wt% 36.2 wt% Solids 0.5 wt% 0.3 wt% 0.2 wt% 0.1 wt% 0.5 wt% Analysis of Oil Phase GC/MS of oil Crude oil C6 to C38+ hydrocarbons Crude oil C6 to C38+ hydrocarbons Crude oil C6 to C38+ hydrocarbons Crude oil C6 to C38+ hydrocarbons Crude oil C6 to C38+ h drocarbons FTIR (Infrared) Aliphatic and aromatic hydrocarbons only Aliphatic and aromatic h drocarbons only Aliphatic and aromatic hydrocarbons only Aliphatic and aromatic hydrocarbons only Aliphatic and aromatic hydrocarbons only of Solids —Analysis XRD of Solids Siderite (iron carbonate), iron oxides with small quartz and mixed clays Siderite (iron carbonate), iron oxides with small quartz and mixed clays Siderite (iron carbonate), iron oxides with small quartz, barite and mixed clays Siderite (iron carbonate), iron oxides with small quartz, barite and mixed clays Quartz, siderite (iron carbonate), iron oxides, barite, calcite, mixed clays of Water Phase -Analysis Chloride, m /L 161,700 116,000 97,000 90,000 45,400 Calcium, m /L 1,300 450 500 530 280 Magnesium, m /L 130 76 130 150 75 Sodium, m /L 108,000 85,100 69,300 65,100 29,200 Potassium, m /L 3,800 2,900 2,400 2,200 4,000 Iron, m /L 0.9 6 16 7 8 Silica, m /L < 0.001 < 0.001 < 0.001 2 < 0.001 Aluminum, m /L < 0.001 < 0.001 < 0.001 < 0.001 < 0.001 Barium m /L < 0.001 < 0.001 < 0.001 0.04 0.3 Manganese, m /L 20 3 1 1 1 Strontium, m /L 12 8 17 21 8 Bromide, m /L 2,010 2,500 2,100 2,000 650 Sulfate, m /L 2,400 2,700 2,400 2,200 710 Phosphate, m /L < 125 < 13 < 13 < 13 < 13 Nitrate, m /L < 125 4,030 3,950 3,900 960 Boron, m /L 0.02 7 16 19 15 HCO3, m /L - 310 380 430 550 CO3, m /L - 0 0 0 0 OH, m /L - 0 0 0 0 Polymer (by FTIR) Not enough water to analyze Not detected Not detected Not detected Not detected Copies to: Kelly Haag Signed: Marc Churan Ray Figueroa Jim Cucullu Page 3 of 8 Notice: This report is limited to the described sample tested. Any person using or relying on this report agrees that M-1 L.L.c. and its affiliates shall not be liable for any loss or damage, whether due to act or omission, resulting from such report or its use. r-I Figure 1: GUMS scan of oil phase from Sample collected 9/29/2010, 6:45 8.0E+05 _. V U 7 0E+05 60E+05 5 0E+05 c g ¢ 4 0E+05 m m 3.0E+05 NWanes High M.h,e W., %Neigh 2.0E+05 A --tic, 1.0E+05 10E+02 2 5 8 11 14 17 20 23 26 29 32 35 38 41 44 47 50 53 56 59 62 65 68 71 Time, Minutes Figure 2: GC/MS scan of oil phase from Sample collected 9/29/2010, 6:50 pi 1.4E+06 1.2E+06 1.0E+06 8.0E+05 a m m a 60E+05 4.0E+05 2 0E+05 U -10E+02 2 5 8 11 14 17 20 23 26 29 32 35 36 41 44 47 50 53 56 59 62 65 68 71 74 Trine, Minutes Copies to: Kelly Haag Ray Figueroa Jim Cucullu Signed: Marc Churan Page 4 of 8 Notice: This report is limited to the described sample tested- Any person using or relying on this report agrees that M-1 L.L-c. and its affiliates shall not be liable for any loss or damage, whether due to act or omission, resulting from such report or its use. 3: GC/MS scan of oil phase from Sample collected 9/2912010, 7:50 pm: 1.2E+06 1.0E+06 8 0E+05 m a c a m 6 0E+05 m m 4.0E+05 2 0E+05 -1.0E+02 2 5 8 11 14 17 20 23 26 29 32 35 38 41 44 Q7 50 53 56 59 62 65 68 71 74 T,me, Minutes 4: GC/MS scan of oil phase from Sample collected 9/29/2010, 8:35 pm: 7 0E+05 6 0E+05 5 0E+05 m U -emo 4.0E+05 3 a m m 3.0E+05 a 2 0E+05 1.0E+05 -1.0E+02 2 5 8 11 14 17 20 23 26 29 32 35 38 41 44 47 50 53 56 59 62 65 68 7f 74 Time, Mmtes Copies to: Kelly Haag Ray Figueroa Jim Cucullu Signed: Marc Churan Page 5 of 8 Notice: This report is limited to the described sample tested. Any person using or relying on this report agrees that M-1 L.L.c. and its affiliates shall not be liable for any loss or damage, whether due to act or omission, resulting from such report or its use. 0 I� lure 5: GC/MS scan of oil phase from 2 5E+05 MIXWIR 5 0E*05 pie collected 10/1/2010, 11:45 pm: -1 0E*02 2 5 8 11 14 17 20 23 26 29 32 35 38 41 44 47 50 53 56 59 62 65 68 71 74 Time. Minutes Figure 6: GC/MS scan of oil phase from Sample collected 1011/2010, 12:30 pm: 2 OE+06 1.5E-06 9 a a ffi 1 OEt06 5 0E+05 -1.0E+02 2 5 8 11 14 17 20 23 26 29 32 35 38 41 44 47 50 53 56 59 62 65 68 71 74 Time, Minutes Copies to: Kelly Haag Ray Figueroa Jim Cucullu Signed: Marc Churan Page 6 of 8 Notice: This report is limited to the described sample tested. Any person using or relying on this report agrees that M-1 L.L.c. and its affiliates shall not be liable for any loss or damage, whether due to act or omission, resulting from such report or its use. • Figure 7: GC/MS scan of oil phase from Sample collected 10/1/2010, 2:00 pm: 2 5E+06 2 0E+06 c a 15E+OB a rc 1 0E+06 5 0E+05 -1.0E+02 2 5 8 11 14 17 20 23 26 29 32 35 38 41 44 47 50 53 56 59 62 65 68 71 74 Time. Minutes ure 8: GC/MS scan of oil phase from Sample collected 10/1/2010, 2:45 pm: 2.5E+06 2.0E+06 c 0 c a 1.5E+06 rc 1.0E+06 5.0E+05 Copies to: Kelly Haag Ray Figueroa Jim Cucullu Signed: Marc Churan Page 7 of 8 Notice: This report is limited to the described sample tested. Any person using or relying on this report agrees that M-1 L.L.c. and its affiliates shall not be liable for any loss or damage, whether due to act or omission, resulting from such report or its use. 0 Copies to: Kelly Haag Signed: Marc Churan Ray Figueroa Jim Cucullu Page 8 of 8 Notice: This report is limited to the described sample tested. Any person using or relying on this report agrees that M-I L.L.C. and its affiliates shall not be liable for any loss or damage, whether due to act or omission, resulting from such report or its use. BP Page I of 4 North America - ALASKA - Daily Operations Report (WORKOVER) Operator: BP EXPLORATION Event Type: WORKOVER Report: 9 Well/Wellbore No.: MPK-33/OH Event Objective REPERFORATE Date: 9/7/2010 Well Type: DEVELOPMENT Site: M Pt K Pad Job Number: 7 Acct Proj No: X4-OORF8-E Contractor: NABORS ALASKA DRILLING INC. Rig: NABORS 4ES Current Well Status Depth MD: 11,525.00 (ft) Mound Elevation: 27.90 ( AFE No.: X4-OORF8-E Rig Accept: 10:0O:OOPM 8/30/2010 Est TVD: 9,292.12 (ft) Casing(MD): 6,666.00 (ft) AFE Cost: 1,125,000.00 Rig Release: PBTD: 11,483.00 Cost in: US Dollar Spud Date: 1/9/1997 Elev Ref: 22 : 33 3/25/1999 16:00 @46.80ft (above Mean Sea Daily Well: 88,929.37 WX Date: 6/22/2001 Level) DOL/DFS/Target: Cum. Well: 558,265 Geologist: Est Days: 4.00 days Total Personnel: 27 Engineer: MACKIE DERRICK Rig. Days: 8.08 Day WSL: DAVE RHODES Night WSL: KNOWLES / HAYNES Weather: 36 DEG F , NE 5 MPH, WC 31 DEG F Current Status: FINISH NIPPLING UP 13 518" X 5M ROPE, (4) PREVENTOR CONFIGURATION. PREPPING EQUIPMENT FOR WEEKLY BOP TEST. 24 Hr Summary: PERFORM CEMENT SQUEEZE. PT CEMENT & RETAINER @ 1000 PSI. POOH & PICK UP MILLING BHA. RIH & HANG OFF ON STORM PACKER. PT @ 500 PSI / 10 MIN. N/D BOPE & OLD SPOOL. INSTALL NEW PACK OFF & N/U NEW SPOOL. PT PACKOFF @ 4500 PSI. N/U BOPE. 24 Hr Forecast: CONDUCT WEEKLY TEST ON BOPE @ 250 / 4500 PSI. AOGCC NOTIFIED OF IMPENDING TEST. RELEASE STORM PACKER. RIH & MILL SHOE TRACK & PT CEMENT. MILL BP @ 9380'. POOH FOR MILL. Update at 06:00: N/U SOPE, CONDUCT WEEKLY SAFETY MEETING. Comments: NO ACCIDENTS, NO INCIDENTS, NO ENVIRONMENTAL RELEASES. SINGLE BARRIER DISPENSATION IN PLACE FOR MILNE PT WELL Cost and AFE Summary by AFE Event Type AGSP Planned Cum Cost Grouped AFE Cost Estimate( Cum Cost Grouped Event Cost COM- ONSHORE 337036 0.00 0.00 607,274 607,274 DRILL+COMPLETE 339516 0.00 0.00 117,275 117,275 COM- ONSHORE 337914 0.00 0.00 0 0 WORKOVER 339664 315,000.00 315,000.00 149,150 149,150 WORKOVER MKD339745 0.00 0.00 123,800 123,800 WORKOVER MKE335270 400,000.00 400,000.00 328,243 328,243 MOBILIZATION X4-OORF8-E 75,000.00 1,200,000.00 156,805 1,430,141 WORKOVER X4-OORF8-E 1,125,000.00 1,200,000.00 558,265 11430,141 Totals 1,915,000.001 270,384.62 2,040,8121 2,040,812 HSE and Well Control Days Since Last DAFWC: No Last DAFWC Date All Free Days: Incident Details: Last Csg Test Press: Number of Dropped Objects: Last H2S Drill: 9/3/2010 Last BOP Pressure Test: 9/2/2010 Last Abandonment Drill: 9/3/2010 Last Trip Drill (D1): 9/7/2010 Next BOP Press Test: 9/9/2010 Last Accum Drill (D4): 8/24/2010 Last Safety Meeting: 9/4/2010 Last Diverter Drill (D3): Last Spill Drill: 9/3/2010 Last Environmental Inciden Stop Cards: 12 Regulatory Agency Insp: No Non-compliance Issued: No FIRE 9/5/2010 MAN DOWN 8/31/2010 Kick Tolerance: Kick Volume: No. Slow Pump Rates (Circ) Slow Pump Rates (Choke) Slow Pump Rates (Kill) Stroke Rate Pressure(psi) Stroke Rate Pressure(psi) Stroke Rate Pressure(psi) No Pump Operations with Slow Pump Rates Perfom ance Measures Stop Cards SOC JSEA/TOFS First Aid Near Miss Today 12 Total 35 7 108 1 BHA BHA No. TMD In: H53k Weight : Workstring Purpose: TMD Out: Hook Weight Down: omionin r•en•')Cnee 0 Page 2 of 4 North America - ALASKA - BP Daily Operations Report(WORKOVER) Operator: BP EXPLORATION Event Type: WORKOVER Report: 9 Well/Wellbore No.: MPK-33/OH Event Objective. REPERFORATE Date: 9/7/2010 Well Type: DEVELOPMENT Site: M Pt K Pad Job Number: 7 Acct Proj No: X4-00RF8-E Contractor: NABORS ALASKA DRILLING INC. Rig: NABORS 4ES BHA No. TMD In: Hook Weight UP: Workstring Purpose: TMD Out: Hook Weight Down: Component Component Type Component Detail Jts Length Cum OD I ID Blade OD Bend Connection p/g Size in Type (ft Length (ft) (in) (in) (in) Angle (') 0.0 BHA BHA No.: 3 TMD In: 9,050.00 (ft) Hook Weight : Workstring Purpose: CLEAN OUT TMD Out: Hook Weight Down: Component Component Type Component Detail Jts Length Cum OD ID Blade OD Bend Connection p/B Size in Type (ft) Length (ft) (in) (in) (in) Angle(') Bit Tri-Cone Bit ATJ-4 1 0.60 0.6C 6.125 Fishing Tool Junk Basket 1 4.84 5.44 4.750 Fishing Tool Junk Basket 1 4.86 10.3 4.750 Fishing Tool Junk Basket 1 4.86 15.1 E 4.750 Sub Bit Sub 1 2.11 17.2 4.687 Sub Bumper Sub 1 7.85 25.1 4.750 Fishing Tool Pump -Out SUB PUMP -OUT -SUB 1 1.71 26.82 4.687 Drill Collar Spiral Drill Collar NAD 1 276.66 303.4E 4.750 2.250 Drilling Fluid Type: KCL Funnel Visc: Lost Downhole: 0.0 (bbl) Depth: 11,525.00 (ft) PV: Lost Surface: FL Temp.: ff) YP: Density: 8.40 (ppg) Operations Summa From - To Hrs Phase Task Activity Code NPT Operation Op. Depth (ft) (hr) 00:00 - 00:30 0.50 DECOMP ZONISO CMT P PJSM: FOR CEMENT SQUEEZE OPERATIONS CREW AND ALL THIRD PARTY ON LOCATION. -FINISH RIGGING UP LINES ON THE RIG FLOOR -AIR TEST LINES -CEMENTERS TESTING SURFACE LINES TO 4500 PSI. 00:30 - 02:00 1.50 DECOMP ZONISO CMT P CEMENT SQUEEZE JOB AS FOLLOWS -PUMPED 50 BBLS OF HEATED FRESH WATER, STING BACK INTO RETAINER AND PUMP TWO BBLS TO ENSURE THE RETAINER CAN BE PUMPED THROUGH BEFORE MIXING CEMENT. -STING INTO CEMENT RETAINER AND START PUMPING CEMENT -PUMP 50 BBLS OF 15.8 #,1.16 FT3/SK, 5.103 GAUSK, CLASS G CEMENT -PUMP 59 BBLS OF FRESH WATER DISPLACEMENT. SQUEEZED ALL 50 BBLS OF CEMENT AT 1/2 BPM TO 2 BPM, W/ PRESSURES RANGING F/ 188 PSI TO A FINAL PRESSURE OF 1474 PSI. - 1.5 TO 2 BBL CEMENT LEFT ON TOP RETAINER. 02:00 - 02:30 0.50 DECOMP ZONISO CIR P PICK UP OUT OF RETAINER -PU40' - CLOSE ANNULAR PREVENTER AND REVERSE CIRCULATE - CIRCULATE AT 4 BPM TO 1000 PSI, TOTAL OF 70 BBLS. - MAKING SURE THE RETURNS ARE CLEAN 02:30 - 03:00 0.50 DECOMP ZONISO TSTPRS P PRESSURE TEST THE CEMENT RETAINER AND CEMENT - PT TO 1000 PSI FOR 30 CHARTED MIN. - GOOD TEST, - RIG UP TO POOH 03:00 - 06:00 3.00 DECOMP ZONISO POH P POOH WITH HES CEMENT STINGER ON 3-1/2" 15.5 # DP, STANDING BACK IN THE DERRICK -50 STANDS OUT 01010nin G•An•)GAne BP 0 Page 3 of 4 North America - ALASKA - Daily Operations Report (WORKOVER) Operator: BP EXPLORATION Event Type: WORKOVER Report: 9 WelUWellbore No.: MPK-33/OH Event Objective REPERFORATE Date: 9/7/2010 Well Type: DEVELOPMENT Site: M Pt K Pad Job Number: 7 Acct Proj No: X4-OORF8-E Contractor: NABORS ALASKA DRILLING INC. Rig: NABORS 4ES Operations Summa From - To Hrs Phase Task Activity Code NPT Operation Op. Depth (ft) (hr) 06:00 - 06:30 0.50 DECOMP ZONISO RIGSER P RIG SERVICE AND PERFORM PRE -TOUR CHECKS. 06:30 - 09:00 2.50 DECOMP ZONISO POH P CONTINUE TO POH FROM STAND # 50 TO #95. -HOLE IS STATIC 09:00 - 09:30 0.50 DECOMP ZONISO BHAHDL P PJSM - B/O AND UD SQUEEZE TOOL STINGER. 09:30 - 10:30 1.00 DECOMP ZONISO SAFETY P CLEAN AND CLEAR RIG FLOOR. 10:30 - 12:00 1.50 DECOMP ZONISO BHAHDL P PJSM PU BHA TO RIG FLOOR -MU BHA #3 -PU (9) 4 3/4" DC'S FROM PIPE SHED. -6 1/8" BIT, (3) BOOT BASKETS, BS, BUMPER SUB, PUMP OUT SUB, (9) 4 3/4" DC'S = 303.49' 12:00 - 15:30 3.50 DECOMP ZONISO RIH P RIH WITH BHA #3 ON 3 1/2" DP FROM DERRICK -TO —8600' MD, PUW = 136K, SOW = 83K. 15:30 - 16:00 0.50 DECOMP ZONISO PKRST P MU AND SET 7" STORM PACKER AT —91' MD -LD (3) JTS DP 16:00 - 16:30 0.50 DECOMP ZONISO TSTPRS P RU TEST EQUIPMENT AND TEST 7" STORM PACKER -500 PSI FOR 10 RECORDED MINUTES. GOOD TEST. 16:30 - 18:00 1.50 DECOMP BOPSUR ND P PJSWND ROPE -SUCK FLUID OUT OF BOP STACK. 18:00 - 22:00 4.00 DECOMP BOPSUR ND P PTM. N/D (4) PREVENTOR STACK, REMOVE SINGLE GATE - STAND BACK REMAINDER OF BOP - N/D & REMOVE TUBING SPOOL 22:00 - 00:00 2.00 DECOMP WHSUR NU P PJSM. INSTALL NEW PACKOFF. N/U FMC GEN 5 TUBING SPOOL. 06:00 U date From - To Hrs Phase Task Activity Code NPT Operation Op. Depth (ft) (hr) 00:00 - 02:00 2.00 DECOMP WHSUR NU P CONTINUE TO N/U FMC GEN 5 TUBING SPOOL. - RILDS, TEST SPOOL & PACKOFF @ 4500 PSI / 30 MIN / CHARTED, OK. 02:00 - 03:30 1.50 DECOMP BOPSUR NU P PJSM. N/U 13 5/8" X 5M BOPE. - N/U SINGLE GATE ON TOP OF SPOOL - N/U REMAINDER OF STACK 03:30 - 04:30 1.00 DECOMP BOPSUR SAFETY P WEEKLY SAFETY MEETING. - REVIEW OF STOP CARDS AND RECENT INCIDENTS - REVIEW OF WELL CONTROL EXPECTATIONS W/ REGARD TO SUSPECTED INFLUXES - EMPHASIS ON CONSTANT MONITORING OF WELL AND FLUIDS, (PITS)\ - EMPHASIZE KEEPING ALL WELL CONTROL EQUIPMENT IN GOOD WORKING ORDER 04:30 - 06:00 1.50 1 DECOMP BOPSUR NU P I CONTINUE TO N/U MUD CROSS VALVES ON BOP. Materials/Consumption Item Unit Usage I On Hand IItem Unit Usage On Hand - CAMP ULbl4 986 DIESEL - RIG ULSD GAL 4371 2,43. DIESEL - ARCTIC Gil GA 327 748 01017Mn C-An-OrAPA BP Page 4 of 4 North America - ALASKA - Daily Operations Report (WORKOVER) Operator: BP EXPLORATION Event Type: WORKOVER Report: 9 Well/Wellbore No.: MPK-33/0H Event Objective REPERFORATE Date: W/7/2010 Well Type: DEVELOPMENT Site: M Pt K Pad Job Number: 7 Acct Proj No: X4-OORF8-E Contractor: NABORS ALASKA DRILLING INC. Rig: NABORS 4ES Personnel Personnel on Board: 27 Company No. People Hours Company No. People ours ASRC ENERGY 1 12.00 BP 1 12.00 DOYON 1 12.00 NABORS 21 252.00 NABORS 2 24.00 ORBIS ENGINEERING 1 12.00 Cumulative Phase Breakdown Phase Planned Change of Scope Total Hour. Total Cost Prod % Total NPT % Total WOW % Total Prod % Total NPT % Total WOW % Total DECOMP 186.00 90.73 19.00 9.27 0.00 0.00 0.001 0.00 205.00 558,265.44 Total 186.00 90.73 19.00 9.271 0.00 0.00 0.001 0.00 206.00 558,265.44 Remarks FLUID LOSS TODAY: 0 TOTAL FLUID LOSS TO WELL: 1675 O/A PRESSURE = 0 PSI TEMPORARY PERSONNEL: NIGHT TOUR - FULL CREW DAY TOUR - FULL CREW 2- PTSM; 25- PJSM; PERMITS: 9- FLUID TRANSFER; 0- MAN RIDER; 4- LO/TO; 0- CONFINED SPACE; 0- HOT WORK; 2- SPILL CHAMPION a/a lonIn CZ-An-Or.AAA North America - ALASKA - BP Page 1 of 4' Daily Operations Report (WORKOVER) Operator: BP EXPLORATION Event Type: WORKOVER Report: 11 Well/Wellbore No.: MPK-33/OH Event Objective: REPERFORATE Date: 9/9/2010 Well Type: DEVELOPMENT Site: M Pt K Pad Job Number: 7 Acct Proj No: X4-OORF8-E Contractor: NABORS ALASKA DRILLING INC. Rig: NABORS 4ES Current Well Status Depth MD: 11,525.00 (ft) Ground Elevation: 27.90 AFE No.: X4-OORF8-E Rig Accept: 10:00:OOPM 8/30/2010 Est TVD: 9,292.12 (ft) Casing(MD): 6,666.00 (ft) AFE Cost: 1,125,000.00 Rig Release: PBTD: 11,483.00 Cost in: US Dollar Spud Date: 1/9/1997 Elev Ref: 22 : 33 3/25/1999 16:00 @46.80ft (above Mean Sea Daily Well: 58,848.92 WX Date: 6/22/2001 Level) DOUDFS/Target Cum. Well: 672,016 Geologist: Est Days: 4.00 days Total Personnel: 26 Engineer: MACKIE DERRICK Rig. Days: 10.08 Day WSL: DAVE RHODES Night WSL: HAYNES Weather: 36 DEG F , NE 5 MPH, WC 31 DEG F Current Status: KELLIED UP AND ESTABLISHING PARAMETERS, PREPPING TO MILL BRIDGE PLUGS @ 10,683' & 11,341'. 11,000 FT/LBS REQUIRED TO WEAKLY ROTATE PIPE, MIXING SAFE - SURF - O TO DECREASE DOWNHOLE DRAG. 24 Hr Summary: MILLED CEMENT F/ 9168' - 9370'. CBU & TEST 7" CASING & SQUEEZED PERFS @ 500 PSI. MILL BRIDGE PLUG @ 9380' & PUSH TO 10,683'. POOH F/ JUNK MILL. RIH W/ JUNK MILLING BHA. 24 Hr Forecast: MILL / PUSH BRIDGE PLUG F/ 10,683' - BRIDGE PLUG @ 11,341'. DISPLACE WELL TO CLEAN 9.6 PPG BRINE. MILL BRIDGE PLUG, BULLHEAD 50 BBLS, CBU, SPOT PERF PILL, BULLHEAD 10 BBLS IN TO PERFS, PUSH BRIDGE PLUG TO BTM, POOH. RECORD LOSS RATE. Update at 06:00: M/U MILLING BHA AND RIH ON 3 V2" DP. BOP DRILL W/ RIH, KELLY UP. ESTABLISH PARAMETERS, MIX LUBRICANT TO REDUCE TORQUE. Comments: NO ACCIDENTS, NO INCIDENTS, NO ENVIRONMENTAL RELEASES. SINGLE BARRIER DISPENSATION IN PLACE FOR MILNE PT WELL Cost and AFE Summary by AFE Event Type AGSP Planned Cum Cost Grouped AFE Cost Estimate( Cum Cost Grouped Event Cost COM- ONSHORE 337036 0.00 0.00 607,274 607,274 DRILL+COMPLETE 339516 0.00 0.00 117,275 117,275 COM- ONSHORE 337914 0.00 0.00 0 0 WORKOVER 339664 315,000.00 315,000.00 149,150 149,150 WORKOVER MKD339745 0.00 0.00 123,800 123,800 WORKOVER MKE335270 400,000.00 400,000.00 328,243 328,243 MOBILIZATION X4-OORF8-E 75,000.00 1,200,000.00 156,805 1,657,642 WORKOVER X4-OORF8-E 1,125,000.00 1,200,000.00 672,016 1,657,642 Totals 1,915,000.001 304,814.81 1 2,154,5631 2,154,563 HSE and Well Control Days Since Last DAFWC: 1,518 All Free Days: 1,715 (days) Incident Details: Last Csg Test Press: Number of Dropped Objects: 0 Last H2S Drill: 9/3/2010 Last BOP Pressure Test: 9/8/2010 Last Abandonment Drill: 9/3/2010 Last Trip Drill (D1): 9/3/2010 Next BOP Press Test: 9/15/2010 Last Accum Drill (D4): 8/24/2010 Last Safety Meeting: 9/8/2010 Last Diverter Drill (D3): Last Spill Drill: 9/3/2010 Last Environmental Inciden Stop Cards: 7 Regulatory Agency Insp: No Non-compliance Issued: No FIRE 9/9/2010 MAN DOWN 8/31/2010 Kick Tolerance: Kick Volume: No. Slow Pump Rates (Circ) I Slow Pump Rates (Choke) Slow Pump Rates (Kill) Stroke Rate Pressure(psi) Stroke Rate Pressure(psi) Stroke Rate Pressure(psi) No Pump Operations with Slow Pump Rates Perfom ance Measures Stop Cards SOC JSEA/TOFS First Aid Near Miss Today 7 1 Total 49 8 108 1 ..:.BHA BHA No.: 2 TMD In: 9,068.00 (ft) Hook We7f 4 . =61 9/10/2010 5:53:43AM r9 Page 2 of 4 North America - ALASKA - BP Daily Operations Report (WORKOVER) Operator: BP EXPLORATION Event Type: WORKOVER Report: 11 Well/Wellbore No.: MPK-33/OH Event Objective REPERFORATE Date: 9/9/2010 Well Type: DEVELOPMENT Site: M Pt K Pad Job Number: 7 Acct Proj No: X4-OORF8-E Contractor: NABORS ALASKA DRILLING INC. Rig: NABORS 4ES BHA No.: 2 TMD In: 9,068.00 (ft) Hook Weight UP: 141.00 Workstring Purpose: CLEAN OUT TMD Out: 10,683.00 (ft) Hook Weight Down: 100.00 Component Component Type Component Detail As Length Cum OD ID Blade OD Bend Connection P/B Size in Type (ft) Length (ft) (in) (in) (in) Angle(') Bit Tri-Cone Bit ATJ-4 1 0.60 0.6C 6.125 Fishing Tool Junk Basket 1 4.84 5.44 4.750 1.500 Fishing Tool Junk Basket 1 4.86 10.3C 4.750 1.500 Fishing Tool Junk Basket 1 4.86 15.1E 4.750 1.500 Sub Bit Sub 1 2.11 1710 4.687 2.000 Sub Bumper Sub 1 7.85 25.1 4.750 2.000 Fishing Tool Pump -Out SUB PUMP -OUT -SUB 1 1.71 26.8 4.687 1.813 Drill Collar Spiral Drill Collar NAD 1 276.66 303.4E 4.750 2.250 Drilling fluid Type: KCL Funnel Visc: Lost Downhole: 0.0 (bbl) Depth: 10,683.00 (ft) PV: Lost Surface: FL Temp.: (°F) YP: Density: 8.40 (ppg) O erations Summa From - To Hrs Phase Task Activity Code NPT Operation Op. Depth (ft) (hr) 00:00 - 05:30 5.50 DECOMP CLEAN DRLCMT P CONTINUE TO DRILL CEMENT, MED / HARD F/ 9168'. - 80 RPM, 4 12 BPM @ 1035 PSI, 10-12K WOB - ROTARY TORQUE = 9500 FT /LBS - AVG ROP = 30 - 40 FPH -141 K UP WT, 100K DOWN WT, 115K ROTATING WT. - PUMPING 10 BBLS HI VIS SWEEPS EVERY 30' - DRILL CEMENT TO 9370'. - TOP PERFS, (SQUEEZED) @ 9280', NO LOSSES INCURRED W/ DRILLING. 05:30 - 06:00 0.50 DECOMP CLEAN CIR P PJSM. PUMP 15 BBLS HI VIS SWEEP - CIRCULATE BOTTOMS UP, 4 1/2 BPM @ 1035 PSI. 06:00 - 07:30 1.50 DECOMP CLEAN CIR P CONTINUE TO CIRCULATE TILL RETURNS ARE CLEAN 07:30 - 10:30 3.00 DECOMP CLEAN TSTPRS P TEST TO CONFIRM CEMENT SQUEEZE -AT 9370' MD -PUMP 11 STK TO 500 PSI / FOR 30 CHARTED MINUTES, LOST -140 PSI IN 30 MIN. -PUMP 3 STK TO INCREASE TO 500 PSI -TEST, LOST -60 PSI 1N 30 MINUTES -SEND TEST CHART TO ADW RWO ENGINEER -OK TO RESUME OPERATIONS. 10:30 - 11:30 1.00 DECOMP CLEAN DRLCMT P CONTINUE TO DRILL CEMENT F/ 9370' MD -AND COMPOSITE BRIDGE PLUG AT 9380' T/ 9382 MD. - 80 RPM, 4 112 BPM @ 1035 PSI, 10-12K WOB - ROTARY TORQUE = 9500 FT /LBS - AVG ROP = 30 - 40 FPH - 141 K UP WT, 100K DOWN WT, 115K ROTATING WT. 11:30 - 12:30 1.00 DECOMP CLEAN PUSH P -SET BACK KELLY -RIH FROM DERRICK F/ 9382' MD AND TAG FISH & CIBP LEFT AT 10,648' MD, W/ 1 OK WOB. -PUSH DOWN TO 10,683' MD. UNABLE TO PUSH DOWN DEEPER. -PUW = 205K, SOW = 102K. 12:30 - 14:00 1.50 DECOMP CLEAN CIR P CIRCULATE BOTTOMS UP 4.5 BPM / 1500 PSI. -MONITOR WELL 14:00 - 15:30 1.50 DECOMP CLEAN POH P POH F/ 10,683' MD. T/ -8780' MD -STAND 20 STANDS IN DERRICK. -FIRE DRILL IN PIPE SHED. 9/10/2010 5:53:43AM i .-I North America - ALASKA - BP Page 3 of 4 -Daily Operations Report (WORKOVER) Operator: BP EXPLORATION Event Type: WORKOVER Report: 11 Well/Wellbore No.: MPK-33/OH Event Objective REPERFORATE Date: 9/9/2010 Well Type: DEVELOPMENT Site: M Pt K Pad Job Number: 7 Acct Proj No: X4-OORF8-E Contractor: NABORS ALASKA DRILLING INC. Rig: NABORS 4ES Operations Summa From - To Hrs Phase Task Activity Code NPT Operation Op. Depth (ft) (hr) 15:30 - 17:00 1.50 DECOMP CLEAN RIGSER P PJSM- CUT AND SLIP DRILL LINE. 17:00 - 18:00 1.00 DECOMP CLEAN POH P POH F/-8780' MD 18:00 - 18:30 0.50 DECOMP CLEAN RIGSER P SERVICE RIG AND PERFORM PRE TOUR CHECKS 18:30 - 22:00 3.50 DECOMP CLEAN POH P CONTINUE TO POOH. STAND BACK 113 STDS 3 1/2" DP - HOLE TAKING PROPER DISPLACEMENT, NO FLUID LOSS 22:00 - 00:00 2.00 DECOMP CLEAN BHAHDL P PJSM. STAND BACK 4 3/4" DCS, UD BHA - BIT IS WORN WITH SEVERAL TEETH BROKEN OFF (INNER) & SOME WEAR ON OUTER - BEARINGS ARE GOOD, BIT IS IN GAUGE -TWO GALLONS OF CMT IN JUNK SUBS ALONG WITH BRASS AND IRON. - CLEAR / CLEAN RIG FLOOR. 0600 Update From - To Hrs Phase Task Activity Code NPT Operation Op. Depth (ft) (hr) 00:00 - 01:30 1.50 DECOMP CLEAN BHPULD P PJSM. PICK UP MILLING BHA INCLUDING: - 5 BLADED JUNK MILL, (3) JUNK SUBS, BIT SUB - BUMPER SUB, OIL JARS, PUMP OUT SUB, (9) 4 3/4" DCS - OVERALL LENGTH = 315.91' 01:30 - 06:00 4.50 DECOMP CLEAN RIH P RIH W/ MILLING BHA ON 3 9/2" DP - BOP DRILL, (UNANNOUNCED), W/ RIH - VERY GOOD RESPONSE BY CREW, WELL SECURED,1 MIN 25 SEC - MONITOR WELL, VERY STABLE, CONTINUE IN HOLE Materials/Consumption Item Unit Usage On Hand I Item Unit Usage On Hand 91 - 6_ DIESEL - ARCTIC Gf GAL 244 3,08 Personnel Personnel on Board: 26 Company No People Hours Company No. People Hours ASRC ENERGY 1 12.00 DOYON 1 12.00 NABORS 21 252.00 NABORS 2 24.00 ORBIS ENGINEERING 1 12.00 Cumulative, Phase Breakdown Phase Planned Change of Scope Total Hour. Total Cost Prod % Total NPT % Total I WOW % Total Prod % Total NPT % Total WOW % Total DECOMP 234.00 92.49 19.00 7.511 0.00 0.00 0.00 0.00 253.00 672,016.00 Total 234.00 92.49 19.00 7.51 0.00 0.00 0.00 0.00 254.00 672,016.00 Remarks FLUID LOSS TODAY: 0 BBLS FLUID LOSS TODAY: 0 BBLS TOTAL FLUID LOSS TO WELL: 1656 BBLS O/A PRESSURE = 0 PSI TEMPORARY PERSONNEL: NIGHT TOUR - FULL CREW DAY TOUR - FULL CREW 2- PTSM; 18- PJSM; PERMITS: 14- FLUID TRANSFER; 1- MAN RIDER; 3- LO/TO; 0- CONFINED SPACE; 0- HOT WORK; 2- SPILL CHAMP 9/10/2010 5:53:43AM North America - ALASKA - BP w IPage 4 of 4 Daily Operations Report (WORKOVER) Operator: BP EXPLORATION Event Type: WORKOVER Report: 11 Well/Wellbore No.: MPK-33/OH Event Objective: REPERFORATE Date: 9/9/2010 Well Type: DEVELOPMENT Site: M Pt K Pad Job Number: 7 Acct Proj No: X4-00RF8-E Contractor: NABORS ALASKA DRILLING INC. Rig: NABORS 4ES Remarks CONSULTED W/ TOWN ENGINEER REGARDING BULLHEADING PILL AFTER LAST BRIDGE PLUG IS MILLED UP. REVISED PLAN IS TO DISPLACE TO 9.6 PRIOR TO MILLING BP @ 11,341'. AFTER MILLING, CLOSE BAG, BULLHEAD 50 BBLS 9.6 BRINE CBU, RECORD LOSS RATE, SPOT 50 BBLS PERF PILL & BULLHEAD 10 BBLS IN TO PERFS. MONITOR WELL PUSH BP TO BOTTOM. POOH. RECORD NEW LOSS RATE. 9/10/2010 5:53:42AM Roby, David S (DOA) From: De'Ath, Alex (ANC) [deatha d@bp.com] Sent: Wednesday, November 17, 2010 9:52 AM To: Roby, David S (DOA) Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA); McEntyre, Scott R Subject: RE: Milne Point K-33 discussion Dave, No computer or projector needed, we'll bring paper copies. Thanks Alex From: Roby, David S (DOA) [mailto:dave.roby@alaska.gov] Sent: Wednesday, November 17, 2010 9:09 AM To: De'Ath, Alex (ANC) Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA); McEntyre, Scott R Subject: RE: Milne Point K-33 discussion See you then. I'll ask our receptionist to have a parking pass ready for you. Will you need a computer and/or projector set up? Dave Roby (907)793-1232 From: De'Ath, Alex (ANC) [mailto:deatha@bp.com] Sent: Wednesday, November 17, 2010 9:07 AM To: Roby, David S (DOA) Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA); McEntyre, Scott R Subject: RE: Milne Point K-33 discussion Dave, 9am would be great. We'll meet you there tomorrow. I'll give you a call when we arrive. Regards Alex From: Roby, David S (DOA) [mailto:dave.roby@alaska.gov] Sent: Wednesday, November 17, 2010 8:33 AM To: De'Ath, Alex (ANC) Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA); McEntyre, Scott R Subject: RE: Milne Point K-33 discussion Alex, As long as you don't think this will take more than an hour how about we meet in the Commissions' offices at 9 AM? Regards, Dave Roby • • (907)793-1232 From: De'Ath, Alex (ANC) [mailto:deatha@bp.com] Sent: Tuesday, November 16, 2010 5:00 PM To: Roby, David S (DOA) Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA); McEntyre, Scott R Subject: RE: Milne Point K-33 discussion Dave, If it's possible, anytime from 8am-1:30pm would be great. 2-4pm would be okay for me but would require some meeting rescheduling. Let me know and I can make changes as necessary. Thanks also for the heads -up on the downhole commingling order. regards Alex From: Roby, David S (DOA) [mailto:dave.roby@alaska.gov] Sent: Tuesday, November 16, 2010 3:03 PM To: De'Ath, Alex (ANC) Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA); McEntyre, Scott R Subject: RE: Milne Point K-33 discussion Alex, We can hold the meeting in the Commission's offices at 333 W 7 h Ave, Suite 100, but would it be possible to meet on Thursday afternoon instead of in the morning? There was a previously scheduled meeting at I OAM on Thursday, that will definitely involve Guy and may involve Steve and/or myself, that I missed on the calendar. Also, as a heads up, after doing a quick scan of our regulations I don't see any way that we can do a down hole commingling order, temporary or permanent, without going through our normal process that allows for public comment and participation, see 20 AAC 25.215(b). This process requires scheduling a public hearing and providing at least 30 days notice of such hearing. We do have the authority, under 20 AAC 25.539, to issue emergency orders that are temporary in nature and do not require public involvement, but these are limited to "...if necessary to protect against immediate harm to public health or safety" so I don't think we can go that route in this situation. So, to make a long story short, if you want to get authority to downhole commingle production in this well prior to repairing it the sooner you get an application in the sooner we can schedule it for hearing and take action on it. Regards, Dave Roby (907)793-1232 From: De'Ath, Alex (ANC) [mailto:deatha@bp.com] Sent: Tuesday, November 16, 2010 2:47 PM To: Roby, David S (DOA) Cc: Davies, Stephen F (DOA); Schwartz, Guy L (DOA); McEntyre, Scott R Subject: Milne Point K-33 discussion 6 . David, Emeka just let me know that he'd discussed K-33 with you and we appreciate the opportunity to meet this Thursday, 18th November. Please let us know the meeting location, I understand the time will be 10:30am. Scott McEntyre (Lead Petroleum Engineer) and I will attend. Many thanks Alex De'Ath BPX Alaska, r`M;Ine Faint Base .Mgmi TL cell: +1 f907) 980-1913 work: +1 (907) 564-4617 e-mail: deatha@bp.com • • Roby, David S (DOA) From: Roby, David S (DOA) Sent: Tuesday, November 16, 2010 1:06 PM To: Schwartz, Guy L (DOA) Subject: RE: BP accidental commingling Nope Dave Roby (907)793-1232 From: Schwartz, Guy L (DOA) Sent: Tuesday, November 16, 2010 1:05 PM To: Roby, David S (DOA) Subject: RE: BP accidental commingling Do you know which well? Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Roby, David S (DOA) Sent: Tuesday, November 16, 2010 12:47 PM To: Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Subject: BP accidental commingling Steve and Guy, I just got a call from BP and they want to come over and talk with us, they'd like to meet at 10:30 on Thursday in our offices, about an incident on a well the recently did a RWO on at Milne. They isolated one pool with some sort of plug and opened a new pool, but have determined that the plug has failed and is allowing crossflow/commingling from the two pools. They've shut the well in until they determine the way forward, which is what they want to talk to us about, but believe they will have to do another RWO to pull the ESP completion in the well and repair/replace the plug, which due to scheduling cannot be performed until earlier next year. In the meantime they would probably ask for a temporary authorization to allow commingled production from the well. Does the proposed time work for you? And, do you have any other thoughts. Dave Roby Reservoir Engineer Alaska Oil and Gas Conservation Commission (907)793-1232