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211-167
THE STATE °fALASKA GOVERNOR MIKE DUNLEAVY September 18, 2019 Mr. Tim Jones Land Manager Oil Search Alaska LLC. 900 East Benson Blvd Anchorage, AK 99508 Re: Location Clearances Pikka B ST1 (PTD #2181670) Pikka C STI (PTD #2181630) Qugruk 2 (PTD #2111670) Kachemach 1 (PTD #2111610) Dear Mr. Jones: Alaska Oil and Cas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov The Alaska Oil and Gas Conservation Commission (AOGCC) inspected the surface plug and abandonment of Pikka B STI on April 5, 2019 and Pikka C STI on April 7, 2019. AOGCC waived witness to the surface plug and abandonment of Qugruk 2 on March 29, 2012 as well as Kachemach 1 on April 18, 2012. The final location clearance inspections were completed on August 12, 2019, and copies of the AOGCC location clearance inspection reports are attached. Each drill site was found to be in compliance with onshore location clearance requirements as stated in 20 AAC 25.170. The AOGCC requires no further work on the subject wells or locations at this time. However, Oil Search Alaska remains liable if any problems were to occur with these wells in the future. Sincerely, )essie L1Chm9elowski Commissioner MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: 8/12/19 P. I. Supervisor FROM: Lou Laubenstein SUBJECT: Location Inspections Petroleum Inspector Qugruk #2 PTD 2111670 Oil Search (Alaska), LLC 8/12/19: 1 met Sherard Lier (Oil Search) at the Deadhorse Aviation Center to board a helicopter and fly out to inspect the Qugruk #2 abandoned wellsite for location clearance (one of 4 site inspections today). The well was drilled and P&A'd during the 2012 winter exploration season. This inspection was from the helicopter hovering over the location. The Qugruk #2 location was free of drilling debris and materials from the winter operation, and there was no sign of any sheen or spillage. Attachments: Photo 2019-0812_ Location_C lear_Qugruk-2_ 11. doc x Page I of 2 Location Inspection — Qugruk #2 (PTD 211670) Photo by AOGCC Inspector L. Laubenstein 8/12/2019 2019-0812_Location Clear_Qugruk-2_1l.docx Page 2 of 2 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg���� G�l��l� DATE: 8/12/19 P. I. Supervisor FROM: Lou Laubenstein SUBJECT: Location Inspections Petroleum Inspector Qugruk #2 PTD 2111670 Oil Search (Alaska), LLC 8/12/19: 1 met Sherard Lier (Oil Search) at the Deadhorse Aviation Center to board a helicopter and fly out to inspect the Qugruk #2 abandoned wellsite for location clearance (one of 4 site inspections today). The well was drilled and P&A'd during the 2012 winter exploration season. This inspection was from the helicopter hovering over the location. The Qugruk #2 location was free of drilling debris and materials from the winter operation, and there was no sign of any sheen or spillage. Attachments: Photo 2019-0812_Location_Clear _ Qugruk-2_I1.docx Page 1 of 2 Location Inspection — Qugruk #2 (PTD 211670) Photo by AOGCC Inspector L. 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I''' 0 N_ a S G N 0)/C\ W N M N M ° 0 COre o 0 Q = •C 0 QE Z ° 0 13 E U • to Z a) N • in 0 0 N N N N N N tr0 co : : ; N a I' d pv a m u E a o a) H Release of Confidential Data Coversheet Well Name: PTD: CPUC 2 z < <- 1c0-1- E-Set: 2111'10 alli$G,, 2.1118712.14 6101 21159 ✓ Physical data labeled with PTD, E-Set# Conf.entry: 41 /2-7/ 1 2- V ✓ Import CD data to RBDMS via GeoLogs tab ✓ Confidential (incomplete)entry in Well Data List notes IY Import to DigLogs via E-Set tab Fully logged: / / I y Scan labeled data V/Apply OCR text recognition Save to Well Log Header Scans ✓ New"complete" entry in Well Data List notes Logged by: / (� 071 ( -1 (97 Guhl, Meredith D (DOA) From: ALUJA , JUAN ANDRES [JALUJAV@repsol.com] /'-{ 86, Sent: Wednesday, April 30, 2014 9:15 AM To: Guhl, Meredith D (DOA) Cc: Davies, Stephen F (DOA); VILLALOBOS VENCELA, LORENZO Subject: RE: Qugruk 2, PTD: 211-167, Directional Survey Attachments: Qugruk-2 Directional Survey 0-2527.xlsx; Qugruk 2_Real Time_ROP_DGR_EWR_Survey_MD.pdf; Qugruk 2_Survey_0 to 2296.pdf Importance: High Good Morning Meredith, I apologize for not getting back to you sooner on this. A final report as such was not generated by Sperry Drilling Services(Halliburton).The final directional survey information was reported at the tail of the Real Time ROP-DGR-EWR-Phase 4 log (please see attached PDF files). An Excel file has also been attached as required by Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.050 (d). Please do not hesitate to contact me if any further information or clarifications are required. Sincerely, Juan From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Tuesday, April 29, 2014 3:05 PM To: ALUJA , JUAN ANDRES Cc: Davies, Stephen F (DOA) Subject: Qugruk 2, PTD: 211-167, Directional Survey Dear Mr. Aluja: I am completing the final compliance check for Qugruk 2,completed on 3/29/2012 and due for public release on 4/29/2014. During my review of the file I noted that no directional survey report was provided with the Well Completion report or the other data for this well.As required by Statute AS 31.05.030(d)(2)(B)and Regulation 20 AAC 25.050(d)the operator shall file with the Commission (d)... a complete digital copy of each inclination and directional survey... must be filed with the commission in a format acceptable to the commission. An ASCII/Excel/text version of the directional survey is required for Qugruk 2. Please also submit a PDF version of the survey. Please send me the two versions of the survey via email. I will print and add the survey to the Well Completion report. If you have any questions, please contact me. Sincerely, 1 Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl@alaska.gov Direct: (907)793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. LEGAL ADVERTISEMENT: This information is private and confidential and intended for the recipient only. If you are not the intended recipient of this message you are hereby notified that any review,dissemination,distribution or copying of this message is strictly prohibited.This communication is for information purposes only and should not be regarded as an official statement from Repsol.Email transmission cannot be guaranteed to be secure or error-free.Therefore,we do not represent that this information is complete or accurate and it should not be relied upon as such.All information is subject to change without notice. Esta informaci6n es privada y confidencial y esta dirigida unicamente a su destinatario.Si usted no es el destinatario original de este mensaje y por este medio pudo acceder a dicha informaci6n,por favor,elimine el mensaje.La distribuci6n o copia de este mensaje este estrictamente prohibida.Esta comunicaci6n es solo para prop6sitos de informaci6n y no deberia ser considerada como una declaraciOn oficial de Repsol.La transmisiOn del correo electrOnico no garantiza que sea seguro o este fibre de error.Por consiguiente,no manifestamos que esta informaci6n sea completa o precisa.Toda informaci6n esta sujeta a alterarse sin previo aviso. 2 HALLIBURTON INSITE DIRECTIONAL SURVEY REPORT Repsol Ougruk 2 AK-XX-0009113839 Measured Vertical Vertical Depth Inclination Direction Depth Latitude Departure Section Dogleg (feet) (degrees) (degrees) (feet) (feet) (feet) (feet) (deg/100ft) 0.00 0.00 0.00 0.00 0.00 N 0.00 E 0.00 TIE-IN 134.14 0.25 263.70 134.14 0.03 S 0.30 W -0.03 0.19 225.77 0.17 267.04 225.76 0.06 S 0.64 W -0.06 0.09 311.69 0.36 289.47 311.69 0.02 N 1.02 W 0.02 0.24 405.09 0.47 282.78 405.08 0.20 N 1.67 W 0.20 0.13 493.66 0.88 279.18 493.65 0.39 N 2.70 W 0.39 0.47 581.81 0.99 274.88 581.79 0.57 N 4.13 W 0.57 0.14 670.53 0.76 249.37 670.50 0.42 N 5.45 W 0.42 0.50 760.22 1.05 232.95 760.18 0.28 S 6.66 W -0.28 0.43 856.91 1.49 220.04 856.84 1.78 S 8.18 W -1.78 0.54 957.53 1.67 217.68 957.42 3.95 S 9.92 W -3.95 0.19 1048.87 1.49 203.06 1048.73 6.09 S 11.20 W -6.09 0.48 1145.44 0.87 181.63 1145.28 7.97 S 11.71 W -7.97 0.78 1240.55 1.06 174.15 1240.38 9.57 S 11.64 W -9.57 0.24 1340.87 0.61 178.62 1340.68 11.03 S 11.54 W -11.03 0.46 1434.66 0.90 222.62 1434.47 12.07 S 12.02 W -12.07 0.67 1528.28 1.33 230.46 1528.07 13.30 S 13.36 W -13.30 0.49 1625.40 1.47 71.55 1625.18 13.62 S 13.05 W -13.62 2.83 1722.27 2.41 70.14 1721.99 12.54 S 9.96 W -12.54 0.98 1817.91 2.19 70.09 1817.55 11.23 S 6.35 W -11.23 0.24 1914.54 2.11 72.33 1914.12 10.07 S 2.92 W -10.07 0.12 2009.24 2.50 68.91 2008.74 8.79 S 0.67 E -8.79 0.44 2103.86 2.38 32.33 2103.28 6.39 S 3.65 E -6.39 1.62 2198.05 2.15 31.33 2197.40 3.23 S 5.61 E -3.23 0.25 2296.21 0.86 342.61 2295.53 0.95 S 6.35 E -0.95 1.74 CALCULATION BASED ON MINIMUM CURVATURE METHOD SURVEY COORDINATES RELATIVE TO WELL SYSTEM REFERENCE POINT TVD VALUES GIVEN RELATIVE TO DRILLING MEASUREMENT POINT VERTICAL SECTION RELATIVE TO WELL HEAD VERTICAL SECTION IS COMPUTED ALONG A DIRECTION OF 0.00 DEGREES(TRUE) A TOTAL CORRECTION OF 20.28 DEG FROM MAGNETIC NORTH TO TRUE NORTH HAS BEEN APPLIED HORIZONTAL DISPLACEMENT IS RELATIVE TO THE WELL HEAD. HORIZONTAL DISPLACEMENT(CLOSURE)AT 2296.21 FEET IS 6.42 FEET ALONG 98.55 DEGREES(TRUE) Date Printed:15 February 2012 Create PDF files without this message by purchasing novaPDF printer(http://www.novapdf.com) Guhl, Meredith D (DOA) From: Decker, Paul L(DNR) Sent: Wednesday, April 16, 2014 11:21 AM To: Guhl, Meredith D (DOA) Subject: RE: Extended Confidentiality Application: PTD 211-167 Hi Meredith, No,there have been no requests for extended confidentiality on any of the Repsol Qugruk wells. Qugruk 2 should be released to the public files this spring as per the schedule. Qugruk 4 will also go public this spring, barring any unforeseen request and decision. Thanks, -Paul Paul L.Decker,Petroleum Geologist Resource Evaluation Manager Alaska Division of Oil&Gas 550 W.7th Ave,Ste.1100 Anchorage,AK 99501 (907)269-8791 paul.decker@alaska.gov CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Department of Natural Resources(DNR),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the DNR is aware of the mistake in sending it to you,contact Paul Decker at(907) 269-8791 or paul.decker@alaska.gov. 1 REPJOL RECEIVED April 4, 2012 APR 2 7 2012 Ms. Cathy Foerster, Chair AOGCC Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report Repsol Alaska Qugruk#2 (PTD 211-167) Dear Ms. Foerster. Repsol Alaska hereby submits its Well Completion Report for the work performed in drilling its Qugruk #2 exploration well on the North Slope. This report also documents surface plugging and abandonment work performed under the authority of Sundry Approval #312-109. 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 Y 5) Daily Drilling Reports(requested by Mr. Guy Schwartz) 6) Photographic Documentation of Surface P&A Copies of the mud log and all MWD/LWD logs run will be submitted under separate cover. No wireline logs were run. If you have any questions or require additional information, please contact me at(281) 863-1618 or Bill Penrose at 258-3446. Sincerely, REPSOL ALASKA Robert Jones Drilling Manager—Onshore cc: Rick Ysa—Repsol Alaska enclosures STATE OF ALASKA ALAS._ ,OIL AND GAS CONSERVATION COMMI ,JION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a.Well Status: Oil❑ Gas ❑ SPLUG❑ Other ❑ Abandoned I] ` SuspendedE lb.Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory 2, GINJ E WINJ❑ WAG❑ WDSPL❑ No.of Completions: Sff/1 Service ❑ Stratigraphic Test E 2.Operator Name: 5.Date Comp.,S or t.{ ; 2.Permit to Drill Number: Repsol Alaska Abend.: r":/2012 ` ( 211-167 3.Address: 6.Date Spudded: 13.API Number: 2001 Timberloch Place,Suite 3000,The Woodlands,Texas 77380 2113/2012 50-103-20649.00.00 r 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 1102'FWL, 1214'FNL,Sec 26,T13N,R5E,UM 2/15/2012 Qugruk#2 ' Top of Productive Horizon: 8.KB(ft above MSL): 38.6 15. Field/Pool(s): NIA GL(ft above MSL): 18 Total Depth: 9.Plug Back Depth(MO+TVD): Exploratory , 1102'FWL,1214'FNL,Sec 25,T13N,R5E,UM Surface 4b.Location of Well(State Base Plane Coordinates, NAD 27): 10. Total Depth(MO+TVO): 16.Property Designation: Suface: x- 408780 y- 6016840 Zone- 4 2,525'MD/TVD AOL-391456 , TPI: x- N/A y- N/A Zone- N/A 11.SSSV Depth(MO+TVD)' 17.Land Use Permit: Total Depth: x- 408780 y-6016840 Zone- 4 N/A LAS 28269 18.Directional Survey: Yes 7 , No 7 19.Water Depth,if Offshore' 20.Thickness of Permafrost MDITVD: ' (Submit electronic and printed information per 20 MC 25.050) NIA (ft MSL) 1,372' 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071). 22.Re-drilliLateral Top Window MD/TVD' 1 RI GRes,Mud Lag,MWO Directional(to be submitted under separate cover) NIA 23. C siv.: oVERA�C'` d1E .O ;NG R� RC. , WI PER SETTING DEPTH MO SETTING DEPTH TVD AMOUNT CASING 1. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" 129.45# X56 0' 82' 0' 82' 48" Grouted to surface 0' 24.Open to production or injection? Yes❑ No0 If Yes,list each 25. TUBING RECORD interval open(MD+TVD of Top&Bottom;Perforation Size and Number): SIZE DEPTH SET(MD) PACKER SET(MD/TVD) N/A 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. V4 .ii.. ,;_ DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED N/A 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): No production test conducted Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period -4 Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate .0. 28. CORE DATA Conventional Core(s)Acquired? Yes E No El Sidewall Cores Acquired? Yes❑ No C 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 MC 25.071. RECEIVED APR 272012 RBDMS APR 27 2012 '; AOGCC ,� G Form 10-407 Revised 12/2009 CONTINUEDN REVERSE Submit original only_ ?141) s-i\I1 ,5---/o- 12� 'p�"(' 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested?L. 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 1,372' 1,372' S�e nix fi Formation at total depth: 31. List of Attachments: Location As-Built,Drilling Summary,Daily Drilling Reports,Final Wellbore Schematic 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Bill Penrose 907-264-6114 Printed Name: 4t5belt Jones Title: Drilling Manager-/Onshore Signature: + C�' Phone: 281-863-1618 Date: `� �/ di/ 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 lb: 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 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: 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 27: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other (explain). Item 28: 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 30: 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 MC 25.071. Form 10-407 Revised 12/2009 HCW 0 CD 0 CD 0 C0 o = -0 go m C CD a CD a) 0 r— 0 r— r— m 0 D;) 0 r— 33 1:1 U) cn 0) m > 0 0 0 Z > 0 0 8 :ii :::1 K al m 0 H 0 m -4. M CD (i) co 3 Z M Z C/) co X 0 OJ 03 OD ,•••• > — — — ;:•.: c X 0 co r- •• •• A o MM N.) -/ -L ...L Ti Z I 11 N CO MM A CO a P © 0 CI m r- 0 0 A -,/ (001Mcjir- ,,, ...., z 5 :.—.. u) cn 0 m N 0 (12 a) r la o -i x -o n.., cri c u) x co co z _i 7 0 si, m -L iv E a _. c...) o 7 0 Z CO 7 .. -L , 31 MM r: IV L L LL co 71 'm .o. (.) co co o .p. u) o ,... CO„ co c.) cnco .A• m A cri .4. ... e•l• = Chon %Fit/4"j 411,y0, 474414m, >sicd) V4.- 1\NI‘ • ® - N � 740Hr (' N •zG cs P-- C7 0 / 5. ZCI� 4 I w { )�r1� U J,. p z W ''' / � F-1 Ce(5)`.- o~' ZOaok�znwzJ3J.1 Oz �N 1-5" � Ig �Ua::272,,nn0 aN n '. s4 f d K COLI 0 /�(0 -,° !A}p5 k U j y d Q 3 1 ' z i 3 3 3 <o QQ Q LL S O U W0, 2 m $ =/ A I J` 48 co U z= z. z: w a wb7S NT, r p a e<.- •"lro v o 0'-"' W o'oi•.o In c 6 / =aN.O. Z•MON z•M.O�h w02 41 /ie'a Oo'vNm ONaroo Oovco.0 Ina�o `s.:,•Y\\": %i N:'O N a CO N N< .D �� 1 W a,n O•pGS a n o.6n noon =a°poo.a1> * .d0.'(3g1111 =a . ao-OW ao-°o mO-.0.Oo 6j REPlOt Qugruk # 2 *■■�*�■ Final Condition Ground Level Conductor Cut Off •� � � +*#* and Capped @ 4' BGL �������+*• • +'i'i'ii'i'i•�•i'i' +'ii•�'i'i'i•�'i'O ii:ii:i'iii Top of Well Plugged 'i�:':'i•:+i':''�:' from Surface to 658' RKB w/ 520 bbls ASL Cement 20" Conductor ►•iiiiiiiii'i @ 82' BGL • ►'i'i'i'i'i'i'ii'ii•• • O�'ii•ii•+'+•+'iii +•i'ii'i•iii•+•ii ��+++++++�+++�+►+�+*+• iiii•iii'i��'i4 5" Drill Pipe • ! !:�:!:!:�+!: Cut Off @ 689' � � ,� Perforated 2' @ 1,350' �+�+�+'►+" '►+��+�+�.�4 Squeezed w/ 103 bbls +++4..+,..• AS - 1 Cement 12-1/4" Open Hole • • •��#++ Perforated 2' @ 1,750' �O+`+4r•'+'� 'O+• Squeezed w/207 bbls i►++ �>+� O�❖•r+'.•i'+•.'.' AS - 1 Cement 111.................... ��:':�:�+•►:��►r•i%+� Perforated 2' @ 2,430' �������`► �+► �+�' Squeezed w/ 130 bbls • '•'�`t'�''``'+`•'• Class G Cement 12 - 1/4" Bit & BHA Qugruk # 2 TD �I @ 2,515 RKB 2 REV B: 30 MAR 2012 Qugruk#2 DRILLING SUMMARY February 12, 2012 0' MW(N/A) Vis (N/A) Incl (N/A) Accept Nabors Rig #105AC. MU BHA, mix spud mud. PU, MU and rack back drill pipe. Test diverter system w/ AOGCC witness (Jeff Jones). RIH, tag up at 98'. Circ, calibrate instrumentation, pressure test all surface lines. February 13, 2012 1,092' MW 9.1 ppg Vis 95 sec Incl 1.67° C&C mud. Spud well, drill 16"hole 98' — 1,092'. February 14, 2012 2,247' MW 9.2 ppg Vis 101 sec Incl 2.38° Drill 16,>hole 1,092' —2,247'. February 15, 2012 2,515' MW 9.2 ppg Vis --- sec Incl ---° Drill 16" hole 2,247' — 2,515'. Well kicked and mud flowed from well. Close diverter and pump remaining mud from pits downhole. All mud ejected from well and well started flowing gas. Rig and camps shut down and location evacuated of all personnel. All personnel accounted for and no injuries. February 16, 2012 2,515' MW ---ppg Vis --- sec Incl ---° All operations on pad suspended while well control personnel, equipment and plans are organized. February 17, 2012 2,515' MW---ppg Vis --- sec Incl ---° Monitor well and pad. Well quiet with intermittent minor venting. Rig up temporary offices on staging pad near well pad. Erect scaffolding, wrap top drive, kelly hose and DP in plastic and apply heat. Build heavy mud at mud plant. February 18, 2012 2,515' MW---ppg Vis 95 sec Incl ---° Monitor well and pad. Well quiet. Arrange for mobile boilers. Set up additional camps at staging pad. Continue heating tented equipment. February 19, 2012 2,515' MW ---ppg Vis 101 sec Incl ---° Monitor cellar and rig floor for gas. Continue heating top drive and kelly hose. Close upper and lower IBOPs, bleed pressure f/ kelly hose, break kelly hose off top drive. Stage portable boiler and generator. Break loose pipe shed heater and place in containment. February 20, 2012 2,515' MW ---ppg Vis --- sec Incl ---° Well quiet, monitor for gas. RU steam lines and manifold for boiler. RU hot air ducting to annular. Begin thawing cellar and cleaning out mud. Set up remote gas detectors. February 21, 2012 2,515' MW---ppg Vis --- sec Incl---° • RU steam lines to thaw cellar box. RU hot air heaters to thaw annular preventer. RU hardline f/ rig floor to pipe shed for pumping. Steam pump room and cellar mezzanine. Hang cellar lighting. Continue steaming cellar and pump room. Heat accumulator. February 22, 2012 2,515' MW---ppg Vis --- sec Incl ---° Monitor for gas. Thaw and remove mud from pump room and cellar. Set up heaters in VFD house and cold start room. Inspect annular, element and conductor — in good condition. Knife valve track and paddle washed. Install metal patch on diverter tee to cover 8"x 8"washout. February 23, 2012 2,515' MW---ppg Vis --- sec Incl ---° Continue thawing and cleaning up mud f/ rig with concentration on VFD room and cold start generator. Install add'! patch on diverter line — both washouts covered. RD pump iron to standpipe, RD plastic and scaffolding around top drive. RU heater to thaw remainder of diverter line. February 24, 2012 2,515' MW---ppg Vis --- sec Incl ---° Continue to thaw and clean mud from rig w/ emphasis on VFD room and cold start generator. Steam and thaw in cellar, thaw diverter line. Wrap annular and heat. Tarp top drive and heat. Place cuttings box at end of diverter. Steam and clean various parts of rig. February 25, 2012 2,515' MW---ppg Vis 95 sec Incl ---° Continue to thaw and clean mud from rig, concentrating on VFD room and cold start generator. Consolidate and stage frozen solids. Steam and clean various parts of rig. Start inspection of cold start generator. February 26, 2012 2,515' MW ---ppg Vis 101 sec Incl ---° Continue to thaw and clean mud from rig, concentrating on VFD room and cold start generator. Pressure wash in cellar. RU heater and lights in boiler hot well rm, turn on lights in pump rm. Steam and clean various parts of rig. Inspect cold start and main generators. Continue heating annular and top drive. February 27, 2012 2,515' MW ---ppg Vis --- sec Incl ---° Continue to thaw and clean mud from rig, concentrating on VFD room and cold start generator. Start megging electrical lines. Finalize rigging of diverter line and cuttings tank at end. Start cold start engine and Engine #3. Energize lighting and electric heat in doghouse to warm up electronics. Plumb steam f/ mobile boilers to subbase steam heaters—working, no apparent damage. February 28, 2012 2,515' MW---ppg Vis --- sec Incl ---° Continue to thaw and clean mud from rig, concentrating on VFD room. Heat doghouse electronics. Hook up steam in mud pits, thaw mud in sub. Remove 13-3/8" casing f/ pipe shed. Clean and rewire in VFD house. Start and load test #2 and #4 generator engines and shut down. Lighting and heaters running off rig power. February 29, 2012 2,515' MW ---ppg Vis --- sec Incl ---° Continue rig thaw and cleanup. Finish unloading csg f/pipe shed. Move out 4 sections of pipe shed. Power up top drive & drawworks. Test and verify emergency shutdowns for generators and VFD. Hook up hydraulics on top drive and function test w/o rotation or movement of drill pipe. Open rig pumps for inspection and cleaning. March 1, 2012 2,515' MW---ppg Vis --- sec Incl ---° Clean rig, drain/inspect mud pumps,prep for WL ops. PJSM, close diverter w/ 1,550 psi. Bleed down DP in slow stages f/600 psi to 0 psi. Close lower TD valve and lower IBOP and break off top drive between them. MU flange and gate valve for WL ops. RU WL p eq ui . March 2, 2012 2,515' MW---ppg Vis --- sec Incl ---° RU wireline, PU tools, stab lub. Test lub to 1,500 psi, bleed down to 600 psi. Open DP, pressure stabilized at 500 psi. RIH w/ 1-11/16 CCL/GR/CBL, tag at 1,126' —unable to pass. POOH, RD wireline. Continue cleaning O on rig. March 3, 2012 2,515' MW---ppg Vis 95 sec Incl ---° RD wireline. Clean rig, thaw cellar for access to valves on conductor. Service mud pump#2. Move mud engineer's lab out of hot zone. Hold crew evacuation drill. March 4, 2012 2,515' MW---ppg Vis 101 sec Incl ---° Clean rig, thaw cellar for access to valves on conductor. Service mud pump #2. Thaw and suck off fluid aroundpip hydraulic shed section and clear h draulic lines in same. Remove pipe shed section to enable coil tubing ops. March 5, 2012 2,515' MW---ppg Vis --- sec Incl ---° Clean rig, thaw cellar for access to valves on conductor. Plumb into valves. Thaw, free up and move east side pipe shed. Repair water lines in pits and continue rebuilding mud pump fluid ends. Spot coil tubing unit, set up containment, crane and heat. March 6, 2012 2,515' MW---ppg Vis --- sec Incl ---° Cont cleaning rig, rebuilding mud pumps and thawing/draining cellar. Set coil BOPE on DP, RU coil equip, BOP control lines and lubricator. MU pumping lines. RU choke hard line. Set choke in connex, RU lines and downstream diffuser tank. March 7, 2012 2,515' MW---ppg Vis --- sec Incl ---° Rig lines f/CT BOP mud cross to choke manifold and f/choke to diffuser tank. Work on mud pumps, pressure test rig air lines. Install check valve on conductor return line. Attempt to pick coil injector—too heavy for single line on crane. Wait on two-line block for crane. Cont to thaw/clean rig. Prep to start rig boiler. Install 2-line block on crane, PU and stab injector. Tie off hydraulic lines. March 8, 2012 2,515' MW---ppg Vis --- sec Incl---° Clean rig, work on mud pumps and rig water system. RU hot oil truck, fill coil w/diesel. Test rig alarms and coil BOPE to 250/2,500 psi - witness by AOGCC rep Jeff Jones. 3 failures—2 repaired, replacement parts ordered f/Anchorage for third. Continue working on rig. March 9, 2012 2,515' MW---ppg Vis --- sec Incl ---° Test BOPE to 250/2,500 psi — witnessed by AOGCC's Jeff Jones. Replacement part needed for Choke A. While waiting on part, install jet on coil and work on rig pits. Repair choke and finish BOP test— witnessed by AOGCC's Chuck Shieve. Fill annulus w/ 130 bbls 12.5 ppg mud. RIH in DP w/coil, tag at 1,182'. Wash through and continue to wash to btm—2,455' CT meas. Pump 102 tot bbls hot diesel @ 0.75 bpm, 1,200 psi on coil while holding 600-400 psi on choke. CBU, POH. Clean rig while waiting on brine. March 10, 2012 2,515' MW---ppg Vis 95 sec Incl ---° Steam and clean pits, rebuild boiler wtr pump, work on mud pumps. Pump 12 bbls 9.4 ppg mud down annulus. RIH w/ coil to 2,455'. Displace DP w/ 76 bbls 11.4 ppg potassium formate. Chase w/ 27 bbls diesel. Final 7 bbls diesel chased potassium formate downhole to leak off. First LOT: pump 1.3 bbls @ 0.25 bpm, leak off at 2,117 psi w/ 1,500 psi on choke, bled down to 18 psi. Second Test: pump 1 bbl @ 0.25 bpm, pressure up to 2,000 psi on coil & choke, bled dn to 1,100 psi in 2 min w/ 1,100 psi on choke. Open choke, bleed to 0 psi. Third Test: pump 2.25 bbls @ 0.25 bpm, pressured up to 430 psi on coil w/39 psi on choke. Bled to 0 psi. POH w/coil, RD hot oiler, blow dn coil, lines and choke w/nitrogen. RD CT injector and choke hardline. March 11, 2012 2,515' MW---ppg Vis 101 sec Incl ---° RD CTU, lubricator and BOPs. RD crane, RU WL, test lub. RIH w/ CBL to 2,434' WLM. Work tool free f/top of BHA, log to surface. Possible DP-Fm continuity 1,326'- 1 1,396' and 1,610'-1,710'. March 12, 2012 2,515' MW---ppg Vis --- sec Incl ---° RD WL. Fire up rig boilers. RU pump truck, scaffolding, hard lines, hot oil truck and vac trucks. Test lines to 2,000 psi, function test annular. Work DP up and down with torque while pumping diesel. Stretch calculations indicate stuck point at approx 548'. March 13, 2012 2,515' MW---ppg Vis --- sec Incl ---° Continue to work pipe. RD hard lines and scaffolding, RU WL. RIH, perforate DP 2,340'-2,342' w/4 spf. POH, RD WL. RU hard line for pumping. March 14, 2012 2,515' MW---ppg Vis --- sec Incl ---° RU hard lines, PT to 3,500 psi. Perform injectivity test— 3.5 bpm @ 1,100 psi. Pump 5 bbls wtr followed by 129.7 bbls 15.8 ppg Class G cement and displace w/ 3 bbls wtr and 32 bbls diesel. SI TIW valve and RD cementers and hard lines. RU WL, RIH w/ guns. PT cmt plug in DP to 500 psi. Perf DP at 1,750' w/4 spf, 2 ft long. POH, RD WL. RU hard line and pumping manifold. March 15, 2012 2,515' MW---ppg Vis --- sec Incl ---° RD hard line to kill tank, RU pumping hard line. Thaw standpipe, remove frozen kelly hose and shock hose. Test pumping lines to 3,500 psi. Perform injectivity test—bullhead 13 bbls diesel at 4 bpm, 700 psi. Pump 207 bbls ppg Arcticset I cmt at 4.2 bpm, 1,000 psi. Displace w/ 3 bbls wtr and 26 bbls diesel. Pressure test new standpipe and install. MU hoses. Load out csg, clean in cellar. March 16, 2012 2,515' MW---ppg Vis --- sec Incl ---° Pressure test cmt plug above perfs at 1,750' to 1,300 psi. Winessed by AOGCC's Lou Grimaldi. RD test equip & hard line. RU WL, RIH. Perf at 1,350' w/ 4 spf, 2 feet. POH, RD WL. RU pumping iron and pressure test. Perform injectivity test: 4 bpm diesel @ 450 psi. Pump 2 bbls wtr followed by 103 bbls 15.7 ppg ASI cmt at 4 bpm, 600 psi. Displace w/ 3 bbls wtr and 16 bbls diesel. WOC— flush hard lines, steam and clean rig components. March 17, 2012 2,515' MW---ppg Vis 95 sec Incl ---° WOC — clean rig. Test cmt plug in DP to 800 psi. RD hard lines, RU WL. RIH. Shoot collar severing tool at 689'. POH, RD WL. Circ 10.2 ppg mud while stroking pipe to confirm pipe free. RD hard line and scaffolding. LD top jt DP. March 18, 2012 0' MW---ppg Vis 101 sec Incl ---° RU and pressure test pumping equip. Pump 520 bbls 10.7 ppg ASL cmt at 4 bpm, 70- alpsi. Good cmt to surf. Cmt job witnessed by AOGCC's Lou Grimaldi. POOH w/ DP from 658'. RD hard line to kill tank and cmt pumping unit. RD end section of diverter line and tank at end of diverter line. Prep pad for minimal re-installation of pipe shed. Spot three sections of pipe shed. RU pipe shed heat. March 19, 2012 0' MW---ppg Vis --- sec Incl ---° Heat pipe shed, thaw controls and hydraulics for pipe skate. Finish cleaning out cellar. RD diverter section f/ cellar to pipe shed. Clean out bleed tank, kill tank and pits. Run power and hydraulics to pipe shed. Bleed down accumulator. Load out dry mud products, continue cleaning in and around rig. March 20, 2012 0' MW---PPg Vis --- sec Incl ---° Thaw in and around rig, suck up and haul away fluids. Finish cleaning pits. Service pipe skate and lay down drill pipe from derrick while repairing low pressure lines and gun lines in pits. March 21, 2012 0' MW---ppg Vis --- sec Incl ---° LD DP from derrick. RD elevators and bails. ND diverter system, choke hoses and standpipe. RD service loop in derrick and high pressure mud lines. Steam and thaw rig components and rig containment area in prep for rig move. March 22, 2012 0' MW---ppg Vis --- sec Incl ---° Clean in and around rig while disconnecting rig components in preparation for moving off location. March 23, 2012 0' MW---ppg Vis --- sec Incl ---° Move in crane, begin dismantling rig. Rig crew cleaning rig components during disassembly. ACS inspecting rig components for cleanliness before leaving location. March 24, 2012 0' MW---ppg Vis --- sec Incl ---° Organize rig components and yard for loading trucks. Begin loading out trucks while dismantling subbase and derrick. March 25, 2012 0' MW---ppg Vis --- sec Incl ---° RDMO top drive, torque rail and derrick sections. March 26, 2012 0' MW---ppg Vis --- sec Incl ---° Continue dismantling rig and trucking trucking out components. Continue cleaning pad. March 27, 2012 0' MW---ppg Vis --- sec Incl ---° Continue dismantling rig and trucking out components. Continue cleaning pad. March 28, 2012 0' MW ---ppg Vis --- sec Incl ---° Finish dismantling rig and trucking out components. Continue cleaning pad. Cover cellar and spot air heaters to prepare for surface abandonment of well. March 29, 2012 0' MW---ppg Vis --- sec Incl---° Continue loading out equipment and cleaning pad. Fill conductor to surface with cement. AOGCC inspector John Crisp waived witness. Photographically document cement, weld on marker plate and photographically document again. Prepare camp for movement off location. March 30, 2012 0' MW---ppg Vis --- sec Incl ---° Continue breaking down, consolidating and loading out rig components and related equipment. Pull cellar and place gravel over abandoned well, mounded to approximately 5'. Photographically document. March 31, 2012 0' MW---ppg Vis --- sec Incl ---° Continue breaking down, consolidating and loading out rig components and related equipment. April 1, 2012 0' MW---ppg Vis --- sec Incl ---° Finish removing rig and related equipment off of pad. Rig demob from Qugruk #2 complete. FINAL REPORT. REPSOL E&P USA ONSHORE Alaska Daily Drilling Report Well:OUGRUK-2 Report No 13 __ I Report Date.2/12/2012 Wellbore No.:00 Well Name:QUGRUK-2 PILOT HOLE J Common Name:Q-2 PILOT HOLE Project:ALASKA Site:NORTH SLOPE I Rig Name/No.:NABORS 105AC Ground Elevation(ft):18.0 Event ORIGINAL DRILLING I Start Date:1/28/2012 I End Date: Active Datum: NABORS 105AC @38.6ft(above Ground Level) AFE No.:NS_11_002_Q_2 Currency USD WELL INFO API No 50-103-20649-70 Block Supervisor SHANE MCGEEHAN/ Engineer.ALLEN LIVINGSTON BRAD RASCH DEPTH DAYS MD: 98.0 ft TVD: I Progress: 18.0 ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 0.00 hr DFS: 0 days Est Days: MD Auth: 7,000.0 ft Last Casing: 33"(500.0 ft LOT Date: EMW: True Vertical Depth: „.., ,STATUS Current Status at 06:00 Hrs:CIRCULATING AND CONDITIONING SPUD MUD 24 Hr Summary:ACCEPT RIG 00:00 HRS-RACK AND PICK UP 35 STDS 5"DP,SERVICE RIG,DIVERTER TEST WITH AOGCC REP,PICK UP 20JTS 5" HWDP AND JARS RACK BACK.BUILD BHA,TEST STD PIPE AND KELLY HOSE CIRC TO SHEAR OUT SPUD MUD. 24 Hr Forecast GET SPUD MUD IN SHAPE DRILL TO 275'PULL BACK TO 95',PICK UP REMAINDER BHA,DRILL AHEAD. COSTS Daily Cost 76,821 76(USD) Authorized Cost 35,973 300 00(USD) Cumulative Costs.11,884,680 76(USD) I Expenditure 33.04% OPERATION SUMMARY I From To Dur. Phase Achy. Op. Time Operation description (hr) Code Class 0 00 2:30 2.50 CON 01B 13R P PICK UP BHA/CONTINUE RIG CONDITION SAFETY AUDIT.LOAD BHA SMART IRON IN SHED.MIX SPUD.UNLOAD MI MUD PRODUCT.ACCEPT RIG 0000 HRS. 2:30 9:00 6.50 CON 018 13R P PICK UP DRILL PIPE FROM SHED AND STAND BACK.105 JTS.STRAP PIPE IN SHED. MIX SPUD MUD. 9:00 9:30 0.50 CON 0113 13R P SERVICE RIG SERVICE TOP DRIVE AND PIPE SKATE.CALIBRATE SMART IRON IN SHED MWD. 9:30 12:00 2.50 CON 01B 13R P TEST DRIVERTER PERFORM FUNCTION TES,KOOMEY TEST,TEST GAS ALARMS AND PVTS. 12:00 13:00 1.00 CON 01B 13R P LD TEST TOOL/R/D&MOVE BLEEDER AFTER TESTING FLOW METER.PREP PIPE SHED FOR P/U HWPD.CONTINUE RIG SAFETY AUDIT SAFING OUT RIG.INSTALL WIND SOCK. 13:00 15:00 2.00 CON 0113 13R P PICK UP BHA/LOAD BHA#1 INTO PIPE SHED&EXPEDITE BHS TOOLS T/RIG FLOOR. 15:00 16:00 1.00 CON 01B 13R P PICK UP DRILL PIPE/P/U(BUILD)5"HWDP STAND&SET BACK.(7STDS W/JARS) 16:00 18:00 2.00 CON 0113 13R P PICK UP DRILL PIPE-TAG BOTTOM 0 98'.RECALIBRATE MWD&CANRIG BLOCK HEIGHT AS PER SPERRY/HES.CONTINUE TO PU HWDP STAND#7 W/JARS. 18:00 21:00 3.00 CON 01B 13R P TRIP IN HOLE/MU BHA#1 AS PER SPERRY SUM MWD. 21:00 21:30 0.50 CON 018 13R P PICK UP BHA-PLUG IN TO MWD. 21:30 0:00 2.50 CON 018 13R P CIRCULATE AND CONDITION 90'.M/U TD&FILL LINES CHECK DIVERTER SYSTEM FOR LEAKS.CIRC&SHEAR MUD.PT STAND PIPE&KELLY HOSE&ALL SURFACE LINES TO 3000 PS.CIRC&COND T/SHEAR MUD.250/350 GPM @ 200/300 PSI. MUD Dally Mud.-.020.26 USD Cum Mud Cosi.7,020 26 USD Mud Desc ,Density Viscosity Chk PV YP Clom Cl- Ca+ pH Pm Pf Mf I LGS Fann RPM (ppg) (s/qt) TMD j (op) (Ibf/10 (%) (%) (%) (cc) (cc) I (Ibm/ 3/6/600 (ft) i OW) i bbl) Gels HTHP WL Corr Oil/Water NaCI HTHP Cake Elec Stability FL TempECD Est PP 10sec/10min/30min (cc/30min) Solids Ratio (%) (32nd") (ES) (°F) � (ppg) (ppg) (Ibf/100ft°) (Ibm/bbl) (%) (Volts) MUD SYSTEM Gas Volumes Losses Avg Conn Gas(%): Total String Vol(bbl): 0.0 Lost Surf.(bbl): Max Connection Gas(%): Total Annular Vol(bbl): 0.0 Lost Hole(bbl): Avg Trip Gas(%): Total Pit Vol(bbl): 0.0 Max Trip Gas(%): Lines(bbl): 0.0 Avg Background Gas(%): Max Background Gas(%): Total System Vol(bbl): 0.0 Total(bbl). 0.0 Bit Details Bit No. Size Manufacturer Model No. i Class IADC Code Serial No. Jets TFA MD In MD Out I-O-D-L-B-G-O-R (32nd") (ft) (6) 01 16 BAKER MX-1 5206063 1X14,3X18 0.90 98.0 98 01 TODAY CUMULATIVE MD(ft) WOB Current Pump SPP P Bit HHP/Area Noz. Hours Footage ROP Hours Footage ROP Min/Max RPM (gpm) (psi) (psi) Vel. (hr) (ft) (ft/hr) Cum Cum Cum (kip) (rpm) (hr) (ft) (ft/hr) 98.0 0.00/0.00 250.0'. 200.00 60.971 60.97, 60.97 0.0 0 O 0.00 0.0 0.0 BHA No.#01 Bit No.:01 Date/Time In 212/2012 11 59PM Date/Time Out Purpose BHA Length 93.46(ft) Min ID Weight(Above/Below)Jars MD Footage String Wt Drag TQ On/Off (ft) (ft) Up I Down/Rot (kip) (ft-Ibf) (kip) 98.0 0.0 32.0/32.0/32.0 0.0 2/13/2012 4:13:34AM 1.00 1 f Assembly Components Toot Type Item L in #of Length Body Body Connection Weight de Pin Serial No. Fish Neck Joints (ft) OD ID OD Name (PP° Box Length OD O O O (ft) (") Float Sub FLOAT SUB 1 1.90 8 2-3/4 API 151.06 REG • Clamp-On Sleeve Stabilizer SLEEVE TYPE 1 5.58 8 3 API 14722 STABILIZER REG Non-Mag Drill Collar TM COLLAR 1 9.24 8-1/16 3-1/4 API 145.18 REG MWD Tool GAM/RES/PWD 1 27.60 8 2-1/2 API 154.58 REG Non-Mag Drill Collar 8"DM COLLAR 1 9.18 8 3-1/2 API 147.40 REG • Cross Over X-OVER SUB 1 2.15 8 3-1/4 API 143.03 REG Clamp-On Sleeve Stabilizer SLEEVE TYPE 1 5.53 8 3 API 147.22 STABILIZER REG Bent Housing 8"SPERRYDRILL LOBE 1 30.78 8 5 API 121.08 4/5-5.3 STG REG Tri-Cone Bit TRICONE 1 1.50 9 3-1/2 API 184.02 5206063 REG PUMP/HYDRAULICS Make/Model Time Stroke Liner Size I Efficiency Pressure SPM Output Kill SPM/Pressure/Depth (") (") (%) (Psi) (spm) (gym) (spm/psi/ft) 1 GARDENER-DENVER/PZ-9-1000 10 2 GARDENER-DENVER/PZ-9-1000 10. 1. SAFETY Status I Days Since Last Incident Incident Free Days Tot: STOP Cards. Inspections/Drills Other Drill Type. Last Drill: Last Fire/Boat Drill: Last Evacuation Drill Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: Last Csg Press Test Last Csg Press: Last Pit Drill: Last Diverter Drill: Last GOV. Date Last GOV: Rec Date Rec.: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test Next Test Due: Last BOP Function Test Last BOP Drill Standpipe Manifold: Kelly Hose: Diverter Pressure. Annular Press: Rams Pressure: Choke Line: Choke Manifold: Kill Line: PERSONNEL Total No.of People:23 Company No.People Company No.People NABORS 23 !i WEATHER Time: Weather. Comments. Daily High/Low Temp: / I Visibility Ceiling: 10m Wind Spd. Gust Spd: CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) (') (ft) (°) (sec) (ft) (ft) (°) (°) (ft) (") /I / /I I I REMARKS C 2/13/2012 4:13:34AM 2.00 2 REPJOL REPSOL E&P USA ONSHORE ION Alaska Daily Drilling Report Well.QUGRUK-2 Report No 17 Report Date 2/13/2012 Wellbore No 00 Well Name:QUGRUK-2 PILOT HOLE j Common Name.Q-2 PILOT HOLE Project:ALASKA Site:NORTH SLOPE I Rig Name/No.:NABORS 105AC Ground Elevation(ft):10.2 Event ORIGINAL DRILLING Start Date.1/28/2012 End Date: Active Datum. NABORS 105AC @30.8ft(above Ground Level) AFE No.:NS_11_002_O_2 Currency.USD WELL INFO API No.50-103-20649-70 Block. Supervisor:SHANE MCGEEHAN/ Engineer ALLEN LIVINGSTON 1 BRAD RASCH DEPTH DAYS MD. 1,092.2 ft TVD Progress: 1,002.0 ft Avg ROP: 0.0 ft/hr 'Rotating Hours: Cum Rot Hrs: 0.00 hr DFS: 1 days Est Days: MD Auth: 6,992.2 ft II Last Casing: 33"It 492.2 ft LOT Date: EMW: True Vertical Depth: STATUS Current Status at 06:00 Hrs DRILLING 16"HOLE WITH BIT NO.1 DEPTH 1130'AT 0300 AST 24 Hr Summary.CIRC AND COND SPUD MUD,DRILL F/98'T/276'PULL UP PICK UP REMAINING BHA DRILL F/276'T/1004',REPAIR TOP DRIVE COM CABLE.DRILL F/1004'T/1100' 24 Hr Forecast. DRILL AHEAD. COSTS Daily Cost.76,621.76(USD) I Authorized Cost.35,973,300.00(USD) Cumulative Costs.12 030,757 63(USD) Expenditure:33 44% OPERATION SUMMARY I ! From To Dur. Phase Activ. Op. 1 Time Operati __ on description (hr) Code: Class 0:00 3:00 3.00 SUR 02 02A P CIRC AND COND MUD AT 951350 GPM-800PSI 3:00 5:30 2.50 SUR 02 02A P DRILLING 16"HOLE ROTARY DRILL F/98'T/276'340GPM-600PSI,WOB-5,RPM-40,2K TQU P/U-32K,0/0 32K,ROT-32K 5:30 6 30 1.00 SUR 02 02A P PULL 2 STDS HWDP,PICK UP 3NMFC AND RUN DBL HW WITH JARS. ) 6.30 12.00 5.50 SUR 02 02A P DRILLING 16"HOLE F/276'T/509'450GPM 1200PSI,WOB 5-15K,RPM 80,2-5K TQU,P/U 52.0/0 50K,ROT 50K 12:00 21:30 9.50 SUR 02 02A P DRILLING 16"F/509'T 1004(ROT F/509'T/570 SLIDE F/570'T/576'ROT F/576'T/633' SLIDE F/633'T/660'ROT F/660'1/908'SLIDEF/908'T/935'ROT F/935'T 1004' 21:30 22:30 1.001 SUR 14 02A P REPAIR TOP DRIVE COM CABLE,(DAMAGED FROM HANGING ON STD PIPE GUARD) 22.30 1 0.00 1.50 SUR 02 02A P I DRILLING F/1004'T/1100'(SLIDE F/1004'T/1045',ROT F/1045'T/1100')500OPM- 1100/1300PSI WOE 5-15K RPM 65-100.3-5K TQU P/U 65K.S/0 62K ROT 65K MUD Daily Mud 5.388.83 USD Cum Mud Cost 12,409 09 USD Mud Desc Density Viscosity Chk PV YP Clom Cl- Ca+ pH Pm Pf Mf 1 LGS Fann RPM (ppg) (s/qt) TMD (cp). (Ibf/10 (% (%) (%) (cc) (cc) (Ibm/ 3/6/600 (ft) OfE) Iii bbl) WATER BASED MUD 9.10 95.00 1,092.2 17.00 34.000 // Gels HTHP WL Corr Oil/Water NaCI 1 HTHP Cake Elec Stability FL Temp ECD Est PP 10sec/10minf30min (cc/30min) Solids Ratio (%) (32nd") (ES) (CF) 1I (ppg) (ppg) (Ibf/10011') (Ibm/bbl) (%) 1 (Volts) 1 26/38/45 1 1 MUD SYSTEM Gas Volumes Losses Avg Conn Gas(%): Total String Vol(bbl). 0.0 Lost Surf.(bbl): Max Connection Gas(%) Total Annular Vol(bbl) 0.0 Lost Hole(bbl): Avg Trip Gas(%): Total Pit Vol(bbl). 616.0 Max Trip Gas(%): Lines(bbl): 0.0 Avg Background Gas(%): Max Background Gas(%): Total System Vol(bbl): 616.0 Total(bbl): 00 Bit Details Bit No Size Manufacturer 1 Model No Class IADC Code I Serial No. Jets 1 TFA 1 MD In MD Out I-O-D-L-B-G-O-R (32nd") 1 1 (ft) (ft) 01 16 BAKER IMX-1 1 5206063 1X14 3X16 0.90'. 902 90.2 TODAY CUMULATIVE MD(ft) WOE Current Pump SPP P Bit i HHP/Area Noz. Hours Footage ROP Hours Footage ROP Min/Max RPM (gpm) (psi) (psi) ! Vel. (hr) (ft) (ft/hr) Cum Cum Cum (kip) (rpm) (hr) (ft) (ft/hr) 1,0922 5.00,'15.00 0 275.0 1,100 00 261 08 261.08 261.081 0.00 926.0 0.01 0.00 926.0 0.0 BHA No.#01 Bit No..01 Date/Time In: 2/12/2012 11 59PM Date/Time Out: Purpose: BHA Length 812 68(ft) Min ID. Weight(Above/Below)Jars. MD 1 Footage String Wt 1 Drag TQ On/Off (ft) (ft) Up/Down/Rot (kip) (ft-Ibf) (kip) 2/14/2012 3:59 44AM 1.00 1 Assembly Components Tool Type Item C sn #of Length Body Body Connection Weight de Pin Serial No. I Fish Neck Joints (ft) OD ID OD Name (PPO j Box ` Length OD C) O (i) 1 (ft) (") Heavy Weight Drill Pipe 5"X 3"HWDP#49.3(20 20 596.02 6-5/8 3 'NC40 49.30 JNTS) IF Hydraulic Jar DAILEY HYD DRILLING 1 31.81 7-3/4 2-3/4 NC40 140.52 JAR IF Non-Mag Drill Collar NMDC FLEX 1 30.00 7-5/8 3-13/16 H90 116.46 Non-Mag Drill Collar NMDC FLEX 1 30.59 7-3/4 3-13/16 H90 121.60 Non-Mag Drill Collar NMDC FLEX 1 30.80 8-1/8 3-1/4 H90 148.43 Float Sub FLOAT SUB 1 1.90 8 2-3/4 H90 151.06 Clamp-On Sleeve Stabilizer SLEEVE TYPE 1 5.58 8 3 H90 147.22 STABILIZER Non-Mag Drill Collar TM COLLAR 1 9.24 8-1/16 3-1/4 API 145.18 REG MWD Tool GAM/RES/PWD 1 27.60 8-21/32 1-29/32 API 154.58 REG Non-Mag Drill Collar 8"DM COLLAR 1 9.18 8-1/32 3-1/2 API 147.40 REG Cross Over X-OVER SUB 1 2.15 8 3-1/4 API 143.03 REG Clamp-On Sleeve Stabilizer SLEEVE TYPE 1 5.53 8 3 H90 147.22 STABILIZER Bent Housing 8"SPERRYDRILL LOBE 1 30.78 8 5 H90 121.08 4/5-5.3 STG Tri-Cone Bit TRICONE 1 1.50 16 0 API 184.02 5206063 REG PUMP/HYDRAULICS No, Make/Model Time Stroke Liner Size I Efficiency Pressure SPM Output Kill SPM/Pressure/Depth O C) (%) (psi) (spm) (gpm) (spm/psi/ft) 1 GARDENER-DENVER/PZ-9-1000 0:00 1 10 6 96.00 1,300.00 78.00 275.0 2 GARDENER-DENVER/PZ-9-1000 10 SURVEYS MD 7 Inc Azi TVD I N/S ENV I V.Sec DLeg Survey Tool (n) 13 C) (6) I (8) (n) i (n) (°1008) 949 73 1.67 217.68' 949.6 -7.8 -8.8 -7 S 0.21 MWD SAFETY Status Days Since Last Incident.2.00(days) Incident Free Days Tot:18.00(days) STOP Cards:7.00 Inspections/Drills Other Drill Type. Last Drill: Last Fire/Boat Drill. Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: Last Csg Press Test Last Csg Press: Last Pit Drill: Last Diverter Drill: Last GOV. Date Last GOV: Rec: Date Rec.: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: Annular Press: Rams Pressure' Choke Line. Choke Manifold. Kill Line: PERSONNEL Total No.of People.22 Company No.People Company No.People NABORS 22 I WEATHER Time. Weather. Comments: Daily High/Low Temp. / Visibility: Ceiling: 10m Wind Spd: Gust Spd. CURRENTS MAX/SIG WAVE I SWELL VESSEL Speed Dir Ht Dir Period I Ht. Heave I Pitch I Roll Offset Heading (knots)....- (°) ._-. (ft) -- 13 (sec) (ft) (ft) I (°) C) (ft) O I REMARKS 2/14/2012 3:59:44AM 2.00 2 REPSOL E&P USA ONSHORE Alaska Daily Drilling Report Well:QUGRUK-2 ,Report No.:18 ,Report Date:2/14/2012 Wellbore No.:00 Well Name:QUGRUK-2 PILOT HOLE I Common Name:Q-2 PILOT HOLE Project.ALASKA Site,NORTH SLOPE I Rig Name/No.:NABORS 105AC Ground Elevation(ft):10.2 Event ORIGINAL DRILLING `Start Date:1/28/2012 I End Date: Active Datum: NABORS 105AC @30.8f1(above Ground Level) I AFE No..NS_11_002_O_2 Currency:USD WELL INFO API No:50-103-20649-70 Block: I Supervisor:SHANE MCGEEHAN/ Engineer ALLEN LIVINGSTON .1_..-_- BRAD RASCH DEPTH DAYS MD: 2,247.0 ft TVD: Progress: 1,221.0 ft Avg ROP: 46.7 ft/hr Rotating Hours: 26.13 hr Cum Rot Hrs: 26.13 hr DFS: 1.85 days Est Days: MD Auth: 6,992.1 ft Last Casing: 33"(§492.1 ft LOT Date: EMW: True Vertical Depth: STATUS Current Status at 06:00 Hrs:DRILLING 2331'@ 03:00AST 24 Hr Summary:DRILLING 16"SURFACE HOLE F/1100'T/2247' 24 Hr Forecast:TD WELL,PUMP SWEEP,CIRC HOLE CLEAN,SHORT TRIP TO COLLARS,RIH,CIRC HOLE CLEAN,POOH,STANDARD BACK AHA,RIG UP TO RUN CSG. COSTS Daily Cost:151,107.38(USD) Authorized Cost 35,973,300.00(USD) I Cumulative Costs:12,199,379.21(USD) I Expenditure:33.91% OPERATION SUMMARY ! From To Dur. Phase Activ. Op. Time Operation description (hr) Code Class 0:00 12:00 12.00 SUR • 02 02A P DRILLING F/1100'T/1579'(SLIDE F/1100'T/1150'ROT F/1150'T/1291'SLIDE 1291'T/1335' ROT F/1335'T/1579')P/U 75K S/O 75K,ROT 75K,WOB 5-15K,RPM 80-100.3-4 TQU, PUMP 500 GAL,1200-1400 PSI 12:00 13:00 1.00 SUR 02 02A P SLIDE DRILLING F/1579'-1640' 13:00 19:30 6.50 SUR 02 02A P ROTORY DRILLING-F/1640'-T/2057' 19:30 20:30 1.00 SUR 02 02A P SLIDE DRILLING F/2750'T/2100' 20:30 0:00 3.50 SUR 02 02A P ROTORY DRILLING-F/2100'-T/2247'.P/U 85K,S/O 85K ROT 85K,WOB 15K,RPM 100,TQU 3.5K PUMP 500 GPM 1400 PSI MUD Daily Mud:5,564.10 USD I Cum Mud Cost:17,973.19 USD Mud Desc Density Viscosity Chk PV YP Clam Cl- Ca+ pH Pm Pf Mf LGS Fann RPM (ppg) (s/qt( TMD (cp) (lbf/10 (%) (%) (%) (cc) (cc) (Ibm/ 3/6/600 (ft) OW) bbl) WATER BASED MUD 9.20 101.00 2.133.01 21.05 29.000, 500.000 60.0000 9.50'. 0.25 0 45 0.45 16/17/71 I 0 Gels HTHP WL Con' Oil/Water NaCt HTHP Cake Elec Stability FL Temp ECD Est PP 10sec/10min/30min (cc/30min) Solids Ratio (%) (32nd") (ES) (°F) (ppg) (ppg) (lbt/100fP) i(Ibm/bbt) (%) (Volts) 22/43/47 65.00 Mud Desc Density Viscosity Chk PV VP Clom CI- Ca+ pH Pm Pf Mf LOS Fann RPM (ppg) (s/qt) TMD (cp) (Ibf/10 (%) (%) (%) (cc) (cc) (Ibm/ 3/6/600 (ft) OW) bbl) WATER BASED MUD 9.10, 115.00 1.387.0 17.00 43.000 400.000 180 000 9.50 0.30 0.50 0.50 16/17/77 0 0 Gels HTHP WL CorrOil/Water NaCt HTHP Cake Elec Stability FL Temp ' ECD Est PP 10sec/10min/30min (cc30min) Solids I Ratio (%) (32nd") (ES) (°F) (ppg) (ppg) (Ibf/100ft') 1(Ibm/bbl)I (%) (Volts) 28/29/35 0.057.00 Mud Desc Density Viscosity Chk I PV YP Clom CI- Ca+ pH Pm Pf Mf I LGS Fann RPM (ppg) (s/qt) TMD I (cp) (lbf/10 (%) (%) (%) (cc) (cc) (Ibm/ 3/6/600 (ft) OW) bbl) WATER BASED MUD 9.20 110.00. 1.765.0 22.00 41.000 400.000 120.000 9.50 0.30 0.50 0.50 18/20/85 0 0 • Gels HTHP WL Corr [ Oil/Water NaCI HTHP Cake Elec Stability FL Temp 1 ECD Est PP 10sec/10min/30min (cc/30min) Solids Ratio (%) (32nd") (ES) (°F) (ppg) (ppg) (Ibf/100(1') I(Ibm/bbl)I (%) (Volts) 24/42/45 i 59.00 MUD SYSTEM Gas _ Volumes Losses Avg Conn Gas(%): Total String Vol(bbl): 0.0 Lost Surf.(bbl) Max Connection Gas(%): Total Annular Vol(bbl): 610.0 Lost Hole(bbl): Avg Trip Gas(%): Total Pit Vol(bbl): 0.0 Max Trip Gas(%): Lines(bbl): 0.0 Avg Background Gas(%): Max Background Gas(%): Total System Vol(bbl): 610.0 Total(bbl): 0.0 Bit Details Bit No. I Size Manufacturer. Model No. Class 1 IADC Code I Serial No. Jets TFA 1 MD In MD Out I-O-D-L-B-G-O-R I _ _ I (32nd") I (tt) (ft) 01 16 BAKER MX-1 1 5206063 1X14,3X18. 0.90 100.0 • TODAY CUMULATIVE MD(ft) WOB Current Pump SPP j P Bit HHP/Area Noz. Hours Footage ROP Hours Footage I ROP Min/Max RPM (gpm) (psi) (psi) Vel (hr) (ft) (ft/hr) Cum Cum Cum (kip) (rpm) -.-_- (hr) [ (ft) (ft/hr) • BHA No.#01 Bit No.:01 Date/Time In: 2/13/2012 3:00AM Date/Time Out: Purpose: BHA Length:812.68(ft) Min ID: __ Weight(Above/Below)Jars: MD Footage String Wt Drag TO On/Off (tt) (ft) Up/Down/Rot (kip) (ft-Ibf) (kip) 2.176.0 2.085.8 0.0 2/15/2012 3:45:55AM 1.00 1 Assembly Components Tool Type Item lion #of Length Body Body Connection Weight rade I Pin Serial No. Fish Neck ---- Joints (ft) OD ID OD Name (PO Box Length OD r) O (") (9) (') Heavy Weight Drill Pipe 5"X 3"HWDP#49 3 20 20 596.02 6-5/8 3 NC40 49.30'' JNTS) IF Hydraulic Jar DAILEY HYD DRILLING 1 31.81 7-3/4 2-3/4 NC40 140.52 JAR IF Non-Mag Drill Collar NMDC FLEX 1 30.00 7-5/8 3-13/16 H90 116.46 Non-Mag Drill Collar NMDC FLEX 1 30.59 7-3/4 3-13/16 H90 121.60 Non-Mag Drill Collar NMDC FLEX 1 30.80 8-1/8 3-1/4 H90 148.43 Float Sub FLOAT SUB 1 1.90 8 2-3/4 H90 151.06 Clamp-On Sleeve Stabilizer SLEEVE TYPE 1 5.58 8 3 H90 147.22 STABILIZER Non-Mag Drill Collar TM COLLAR 1 9.24 8-1/16 3-1/4 API 145.18 REG MWD Tool GAM/RES/PWD 1 27.60 8-21/32 1-29/32 API 154.58 REG Non-Mag Drill Collar 8"DM COLLAR 1 9.18 8-1/32 3-1/2 API 147.40 REG Cross Over X-OVER SUB 1 2.15 8 3-1/4 API 143.03 REG Clamp-On Sleeve Stabilizer SLEEVE TYPE 1 5.53 8 3 H90 147.22 STABILIZER Bent Housing 8"SPERRYDRILL LOBE 1 30.78 8 5 H90 121.08 4/5-5.3 STG Tri-Cone Bit TRIGONE 1 1.50 16 0 API 184.02 5206063 REG PUMP/HYDRAULICS No. Make/Model Time Stroke Liner Size Efficiency Pressure 1 SPM I Output Kill SPM/Pressure/Depth (") (") (%) (Psi) (spm) 1 (gpm) (spm/Psi/ft) 1 GARDENER-DENVER/PZ-9-1000 23:59 10 96.00 1,304.57 0.0 2 GARDENER-DENVER/PZ-9-1000 10 SURVEYS MD Inc Azi I TVD N/S EON V.Sec DLeg Survey Tool (n) (") (") (ft) (f) (ft) (ft) ("/100ft) 2.103.86� 2.38 32.33 2,103.2 -5.0 13.2 I -5.0 1.621 MWD SAFETY Status Days Since Last Incident.3.00(days) Incident Free Days Tot 19.00(days) STOP Cards. Inspections/Drills Other Drill Type Last Drill Last Fire/Boat Drill. Last Evacuation Drill. Last Weekly Rig Check Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverler Drill: Last GOV. Date Last GOV: Rec: Date Rec.: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold Kelly Hose. Diverter Pressure: Annular Press: Rams Pressure Choke Line: Choke Manifold Kill Line. PERSONNEL Total No of People.22 Company _ 1 No.People Company No.People NABORS 22 WEATHER Time 1 Weather 1 Comments Daily High/Low Temp / Visibility. Ceiling 110m Wind Spd. I Gust Spd: CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period' Ht. Heave Pitch I Roll Offset Heading (knots) () (ft) (") (sec) (ft) (ft) (°) (°) (ft) (°). / /I REMARKS DRILL 16"SURFACE FROM 1065'TO CURRENT DEPTH AVERAGE FLOW RATEx@500 GPM,100 RPM ROTATION I I 2/15/2012 3:45:55AM 2.00 2 I REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT uses. WELL NAME: Qugruk#2 REPORT DATE: 2/15/2012 temp degrees /wind mph/wind chill degrees MD(ft): 2515' Water Used bbls Total Water 2500 bbls COSTS: Fuel Used gal Fuel Received gal Fuel on Hand 20275 gal SUPV ON LOC: Shane McGeehan/Brad Rasch Cuttings Recovered cubic yards Total Recovered 227cubic yards STATUS CURRENT @ 05:00HRS: Monitor Pad and diverter line. Drilling 16"surface hole F/2247'T/2515',well starts unloading,divert well with diverter stack up,evacuate pad, 24 HR SUMMARY: head count,barricade pad access 1 mile away,monitor pad and diverter line.Start setting up command post at Q2 staging pad monitor pad 24 HR FORECAST: Monitor Q2 Pad,(Phone's at command post 907-770-6183,907-770-6192, Fax 907-770-6159)Mobilize Wild Well Control. Plan for well kill OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DUR(ATI)ON OPERATION DESCRIPTION 0:00 9:45 9.75 Drilling F/2247'T,2515' Return flow rate increased, Driller pulled up 5'to check flow,and notified pusher and co man 9:45 10:00 0.25 well started to unload and over ran shakers and mud started coming out of bushings at rotary Close hydril to divert well,sound alarm,notify AOGCC of situation,start evacuation of rig non 10:00 10:30 0.50 essential personal Start second pump,pump 500bbls 9.2 mud @ 14bpm,until ran out of mud Remaining crew shut down all equipment on rig,and evacuate.(start transporting nonessential personal to Q2 staging pad and camp on 01 pad)Shut down both camps. Continue evacuation of personal off Q2 pad.Set up road block at Q2 staging pad.Co.Rep's and 10:30 11:00 0.50 Tool Pusher's monitor pad from 500 yards away.Diverter line blowing gas and mud 300+yards 11:00 0:00 13.00 Continue monitor pad,Head count complete at 01 pad.All personal accounted for 28 people from Arctic Fox camp and 46 people from Wrangle camp @1230 hrs. At 1400 hrs.was noted gas was venting out of rig floor over wind walls and flow from diverter lessened to 100 feet. At 1600 hrs gas diminishing from derrick area and water coming out out rig at shaker cuttings cuttings shoots. Flow out end of diverter line had lessened to 30'Fluid was spreading out on pad,At 1700 hrs fluid had spread approx 100'to east side of rig, and 30'to west side,gas decter readings were taken on water running near edge of pad LEL 0 At 2030 hrs fluid spread had slowed on pad east side had just started on access road to water hole and west side approx 30 feet.from rig berm.Flow from diverter 20'and surging,gas still diminishing from inside rig.At 2300hrs flow f/shaker dumps stopped,diverter surging 10-15' Setting up Command Post on Q2 staging pad,stage trucks with mud of various mud weights, block access to Q2 pad with NAD personal,GCI set up commutation at command post REPSOL E&P USA INC. REPSOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT -01111. WELL NAME: Qugruk#2 REPORT DATE: 2/16/2012 temp degrees-11/wind 7 mph/wind chill-22 degrees MD(ft): 2515' Water Used bbls Total Water 2500 bbls COSTS: Fuel Used gal Fuel Received gal Fuel on Hand 20275 gal SUPV ON LOC: Shane McGeehan/Brad Rasch Cuttings Recovered cubic yards Total Recovered 227cubic yards STATUS CURRENT @ 05:00HRS: Monitor well,thawing out Wrangle camp Monitor Q2 pad.Site inspection and assessment by Wild Well Control.Organize equipment and personal for 24 HR SUMMARY: future operations. 24 HR FORECAST: Continue monitoring Q2 pad and well,staging equipment,scaffold up,tarp,and thaw out top drive, Rigging up for well kill. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Monitor Q2 pad, rig up Command Post on Q2 pad.At 0200hrs spread of water on pad stops, 0:00 7:00 7.00 but is getting deeper near rig.At 0600hrs depth at rig berms around sub approx 12-18 inches. deeper on south side rig.End of diverter line Surging 10-15' no LEL registered around rig out side. Wild Well Control Rep's Wayne Lansford,Steve Wehreberg,and Chris Stover arrive meet with 7:00 0:00 17.00 Co.Rep's,and Nabors pusher Dave Richards discuss options and plan for equipment needed. WWC makes rig and site audit,Take gas readings.Small amount on rig floor, in sub and outside of sub on diverter side.(South)At 1000hrs no more water coming from well.Gas continues to vent but diminishes rate and time between vents through out the day.ACS out to monitor wind direction for running air heaters thawing out camps. Nabors and Delta allowed on site start thawing out camps with air heaters,work to drain up camps.AFC trucks pull fluids off _camp water and sewer tanks.Delta scaffold crew survey and stage scaffolding to Q2 pad. set up security guard at exit from Q2 staging pad to Q2 pad.Organize mud with MI, Barroid and Pioneer.SLB pumping crew site survey,and meeting with WWC and Repsol Co. Reps. Cruz Construction site inspection for clean up on pad for access of equipment east side of pad. AOGCC Rep Lou Grimaldi out discuss well's status,and arrange meeting with Repsol Co. Rep and Wild Well Control at 0800 hrs 2-17-12 and rig site visit. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT WELL NAME: Qugruk#2 REPORT DATE: 2/17/2012 temp degrees-11/wind 7 mph/wind chill-22 degrees MD(ft): 2515' Water Used bbls COSTS: Fuel Used gal Fuel Received gal Fuel on Hand 20275 gal SUPV ON LOC: Shane McGeehan/ Mike Grubb Cuttings Recovered cubic yards STATUS CURRENT @ 05:00HRS: Monitor well,thawing out Wrangle camp and top drive Monitor Q2 pad.Site inspection and assessment by Wild Well Control.Organize equipment and personal for 24 HR SUMMARY: future operations. Continue monitoring Q2 pad and well,clear access to cellar area for vac truck suction line stage equipment for 24 HR FORECAST: well kill operation OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Monitor Q2 pad, GCI rig up phones and internet at Q-2 staging pad in temparary office. 0:00 18:00 12.00 Monitor gas non detected around rig. Rig floor is 1%LEL Well is quite,with periodic slight venting. Wild Well Control Rep's Wayne Lansford,Steve Wehreberg,and Chris Stover a meet with Co. 18:00 0:00 12.00 Rep's,and Nabors pusher Dave Richards.Scaffolding built and wrapped in plastic,heat applied to top drive, kelly hose and down to rotary table. Mud built and in trucks,one truck offloaded to MI mud plant for holding.Still 3 truck with mud.400 bbls of 12.0 ppg and 300 bbls of 10.0 ppg. Continue thaw to drain Wrangle camp. Bob Jones will land in Kuparuk at 7:00 am and will come out to Q-2 AOGCC Rep Lou Grimaldi will be out at 7:00 am REPSOL E&P USA INC. REPIOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT law WELL NAME: Qugruk#2 REPORT DATE: 2/18/2012 temp degrees-6/wind 13 mph NE/wind chill-26 degrees MD(ft): 2515' Water Used bbls COSTS: Fuel Used gal Fuel Received gal Fuel on Hand 20275 gal SUPV ON LOC: Shane McGeehan/ Mike Grubb STATUS CURRENT @ 05:00HRS: Monitor well,round up hoses and fittings for mobile boiler 24 HR SUMMARY: Organize equipment and personal for future operations. 24 HR FORECAST: Continue monitoring Q2 pad and well,clear access to cellar area for vac truck suction line,stage equipment for well kill operation,Start clean up around sub to access cellar OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DURATION OPERATION DESCRIPTION (hrs) Monitor Q2 pad, GCI rig up phones and internet at Q-2 staging pad in temparary office. 0:00 18:00 12.00 Monitor gas non detected around rig. No detection of gas on rig floor,inside sub door and pump room. 18:00 0:00 12.00 Visit from AOGCC Lou Grimaldi.Wild Well Control drafted latest version of well kill operation procedure and preliminary action items. Mobile boilers to be on location in AM.Set up 2 pusher camps at staging area.Continue heating tented area around top drive,kelly hose and around rotary table.Continue monitor wind direction and monitor for gas. Heat Wrangle camp to thaw with portable heater to drain water system. REPSOL E&P USA INC. REPlOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT 111111111111■ WELL NAME: Qugruk#2 temp degrees-3/wind 14 mph NE/wind chill-22 degrees REPORT DATE: 2/19/2012 Water Used bbls MD(ft): 2515' Fuel Used 2045 gal Fuel Received gal Fuel on Hand 20275 gal COSTS: west side pile 110 cu yds today,110 cu yds total SUPV ON LOC: Shane McGeehan/ Mike Grubb STATUS CURRENT @ 05:00HRS: Monitor well,Prep to clean up around exterior of cellar doors 24 HR SUMMARY: Organize equipment and personal for future operations. 24 HR FORECAST: Continue monitoring Q2 pad and well,clear access to cellar area for vac truck suction line,stage equipment for well kill operation,Start clean up around sub to access cellar OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DURATION I (hrs) OPERATION DESCRIPTION 0:00 7:30 7.50 Monitor cellar and rig floor for gas.Continue heating top drive and kelly hose. 7:30 10:30 3.00 Close upper and lower!BOP valves.Bleed pressure from kelly hose. 10:30 12:00 1.50 Break off kelly hose from top drive. 12:00 14:00 2.00 PJSM,Un wire and move MI shack.Stage portable boiler and generator. 14:00 17:00 3.00 Install 3"x 2"and Haliburton valve on top drive.Scrape mud and dislodge pump room tioga, set in containment. 17:00 Il 21:00 4.00 Remove mud around pipe shed tioga,set in containment. 21:00 0:00 3.00 Relocate drill pipe for access to clean up.Prep hoses and build steam manifold for portable boiler. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT "" WELL NAME: Qugruk#2 temp degrees-6/wind 18 mph NE/wind chill-30 degrees REPORT DATE: 2/20/2012 Water Used bbls 140 bbls MD(ft): 2515' Fuel Used 2576 gal Fuel Received gal Fuel on Hand 20275 gal COSTS: west side pile 190 cu yds today,300 cu yds total SUPV ON LOC: Shane McGeehan/ Mike Grubb STATUS CURRENT @ 05:00HRS: Monitor well,clean up around exterior of cellar doors,thawing into cellar. 24 HR SUMMARY: Organize equipment and personal for future operations.Continue thawing. 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 PJSM, Rig up steam lines and manifold for portable boiler. Rig up hot air heater ducting to heat 6:00 6.00 annular.Well quite, monitor with hand held gas detectors. 6:00 Wire in boiler, fill and preheat. Remove frozen cuttings from behind cellar with loader and 12:00 6.00 excavator. Build stand pipe on rig floor from top drive to rig floor.Start tioga heating in sub. Remove cellar door,scrape mud away from cellar.Continue build steam on boiler Remove 12:00 16:00 4.00 pump room tiga duct. 16:00 Continuous gas monitoring. Begin thawing cellar area and open cellar doors.Set up remote 0:00 8.00 gas monitoring system.AIC boiler set up and started thawing. (some gas breaking out of thawing mud 2-7 unit,heater trunks and wind helping disperse gas) Minor first aid,small scrape on leg at staging pad. Nabors SPO stepped on grate and scaped leg. Medic office set up and staffed 24 hours at staging area. AFC building ice pad for camp HT set up remote gas detectors in cellar area and rig floor,trained Nabor personell in use. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT . "■ WELL NAME: Qugruk#2 temp degrees-7/wind 13 mph NE/wind chill-27 degrees REPORT DATE: 2/21/2012 Water Used 95 bbls Mud manifested 117 bbls MD(ft): 2515' Fuel Used 3245 gal Fuel Received gal Fuel on Hand 20275 gal COSTS: west side pile 220 cu yds,520 cu yds total SUPV ON LOC: Shane McGeehan/ Mike Grubb STATUS CURRENT @ 05:00HRS: Monitor well,clean up around of cellar,thawing into cellar and pump room. 24 HR SUMMARY: Organize equipment and personal for future operations.Continue thawing. 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DU(h RATION OPERATION DESCRIPTION PJSM,Rig up steam lines to thaw cellar box.Rig up hot air heaters to thaw and warm annular 0:00 10:00 10.00 preventor.Continuous monitoring with gas detectors.Clear walk way to cellar 10:00 12:00 2.00 Continue to rig up hard line to rig floor from pipe shed for pumping.Clearing west side of mud and move to cuttings bins.Annular retracted to open position.Hydraulic lines severed. 12:00 17:00 5.00 Continue steaming front of cellar and in pump room.Spot pump room tioga and burm.Set up Aic boiler to steam pump room. 17:00 0:00 7.00 Steam mezzanine area.Hang cellar lighting,explosion proof.Heat accumulator with tioga. 85 cu yards cuttings sent to G&I REPSOL E&P USA INC. REPIOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT mum WELL NAME: Qugruk#2 temp degrees-20/wind 6 mph E/wind chill-35 degrees REPORT DATE: 2/22/2012 Water Used 53 bbls Mud manifested 379 bbls MD(ft): 2515' Fuel Used 3983 gal Fuel Received gal Fuel on Hand 20275 gal COSTS: west side pile 80 cu yds today,total 680 cu.yds SUPV ON LOC: Shane McGeehan/ Mike Grubb east side pile 80 cu yds today,total 80 cu.yds STATUS CURRENT @ 05:00HRS: Monitor well,cleaning up mud in SCR room,thawing pump room. 24 HR SUMMARY: Organize equipment and personal for future operations.Continue thawing. 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Continue monitor gas with remote and hand held monitors,0-1 ppm max.Continue to thaw 0:00 12:00 12.00 mud with steam and remove with super suckers.Set up temp lighting in pump room, (class 1 proof).Visually inspect diverter at conductor tee. Drill pipe looked good.State ADEC officials on location,took additional pictures and viewed progress. Scrape and remove ice and set up hot air heaters in VFD house and cold start building.Thawing 12:00 14:00 2.00 in pump room and cellar. Inspect drill pipe,annular and Knife valve with boroscope. Rig up hoses and function to further 14:00 18:00 4.00 inspect annular,element and conductor.Annular,element and drillpipe is in good workable condition. Knife valve track and paddle washed. Continue steaming in pump room. Install fabricated metal patch on diverter tee and cover up 18:00 0:00 6.00 8"x 8"washout.(smaller clamp patch to be modified to fit) Relocate and set up pusher camps on newly constructed 200'x 200'ice pad,approximatly 600' from entrance of pad. 65 cubic yards of cuttings sent to G&I. Loss of approximatly 138 gallons hydrailic fluid from severed knife valve line while well was on diverter, in mud in cellar area. Did not go off pad. REP5OL E&P USA INC. REPlOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT �■ Temp-21/wind 15 mph wsw/Wind chill-46 IDaily Total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 120 cu yds 800 cu yds 25 cu yds Aprox. 775 cu yds REPORT DATE: 2/23/2012 Thawed mud 289 bbls 738 bbls 738 bbls N/A MD(ft): 2515' Cuttings 65 cu yds 150 cu yds N/A Aprox. 190 cu yds COSTS: Boiler Water 122 bbls 410 bbls N/A N/A SUPV ON LOC: Shane McGeehan/ Mike Grubb Fuel used 3538 gal. Fuel on hand 20275 gal. STATUS CURRENT @ 05:00HRS: Monitor well,cleaning up mud in SCR room,thawing diverter line and pump room. 24 HR SUMMARY: Organize equipment and personal for future operations.Continue thawing. 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION PISM,Continue thaw and cleanup mud from rig.Concentrating on SCR room and cold start 0:00 11:00 11.00 generator. Install additional fabricated band clamp on diverter line.Both washouts covered. Rig down pump iron to stand pipe on rig floor. Rig down scaffolding and plastic around top 11:00 16:00 5.00 drive. Remove last piece of diverter.Clean up around end of diverter line for containment. Rig up hot 16:00 0:00 8.00 air heater to thaw out remaining diverter line. 65 cubic yards of cuttings sent to G&I. Hook up phones in pusher camps 600'off entrance of Q-2 REPSOL E&P USA INC. REPlOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-37/wind 13 mph sw/Wind chill-63 I Daily Total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 80 cu yds 880 cu yds 75 cu yds Aprox. 805 cu yds REPORT DATE: 2/24/2012 Thawed mud 116 bbls 854 bbls 854 bbls N/A MD(ft): 2515' Cuttings 75 cu yds 255 cu yds 410 cu yds Aprox.85 cu yds COSTS: Boiler Water 106 bbls 516 bbls N/A N/A SUPV ON LOC: Shane McGeehan/ Mike Grubb Fuel used 4020 gal. Fuel on hand 20275 gal. STATUS CURRENT @ 05:00HRS: Monitor well,cleaning up mud in SCR room and generator,cleaning in pump room. 24 HR SUMMARY: Organize equipment and personal for future operations.Continue thawing, pressure washing 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION PJSM,Continue thaw and cleanup mud from rig.Concentrating on SCR room and cold start 0:00 4:00 4.00 generator. 04:00 6:00 2.00 Thaw and steam in cellar area.Start thawing in diverter line. 6:00 10:00 4.00 Wrap annular with liner and heat.Chink gaps in cellar. Tarp top drive and continue warming.Clear spot to place cuttings box for collection at end of 10:00 12:00 2.00 diverter.State ADEC arrives for more photos. 12:00 14:00 2.00 Thawing mud in generator#1 14:00 18:00 4.00 Spot pressure washer truck.Rig up washer and begin washing mezzanine and cellar area. 18:00 0:00 6.00 Clean in pump room.Steam and vac in generator 4.Clean out motorman's room.Clean and shop vac in generator 1 area. Cuttings have been totalized since spud of well. Monitor well with remote gas detectors and hand held monitors. Consolidate pad cleanup piles to west side. Well has been quite,no detectible gas. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT 11111). Temp-37/wind 13 mph s/Wind chill-57 IDaily Total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 0 cu yds 880 cu yds 175 cu yds Aprox. 705 cu yds REPORT DATE: 2/25/2012 Thawed mud 58 bbls 912 bbls 912 bbls N/A MD(ft): 2515' Cuttings 31 cu yds 286 cu yds 441 cu yds Aprox.60 cu yds COSTS: Boiler Water 125 bbls 641 bbls N/A N/A SUPV ON LOC: Brad Rasch/ Mike Grubb Fuel used 4620 gal. Fuel on hand 20275 gal. STATUS CURRENT @ 05:00HRS: Monitor well,cleaning up mud in SCR room and generator,cleaning in pump room. 24 HR SUMMARY: Organize equipment and personal for future operations.Continue thawing, pressure washing 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DU(h RATION OPERATION DESCRIPTION PJSM,Continue thaw and cleanup mud from rig.Concentrating on SCR room and cold start 0:00 12:00 12.00 generator. Pressure washing in cellar area. Frozen solids consolidated and staged on west side. side of pipe shed. Rig up isolation valves on annular. Continue steaming and thawing in pump room and generator areas. Rig continuously 12:00 0:00 12.00 monitored with remote and hand held monitors. Back feed to lighting in pump room and cold start generator room.Wire in change room.Start inspection on cold start generator(continue heating and cleaning to dry out). Ice and mud pad scrapings amounts adjusted and corrected for last 5 days.( Daily piled amounts were taken for totals) Monitor well with remote gas detectors and hand held monitors. Consolidate pad cleanup piles to west side. Well has been quite,no detectible gas. REPSOL E&P USA INC. REPSOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-35/wind 8 mph N/Wind chill-57 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 75 cu yds 880 cu yds 250 cu yds Aprox. 630 cu yds REPORT DATE: 2/26/2012 Thawed mud 174 bbls 1086 bbls 1086 bbls N/A MD(ft): 2515' Cuttings 0 cu yds 286 cu yds 441 cu yds Aprox. 60 cu yds COSTS: Boiler Water 83 bbls 724 bbls N/A N/A SUPV ON LOC: Brad Rasch/ Mike Grubb Fuel used 3093 gal. Fuel on hand 20275 gal. STATUS CURRENT @ 05:00HRS: Monitor well,cleaning up mud in SCR room and generator,cleaning in pump room. 24 HR SUMMARY: Organize equipment and personal for future operations.Continue thawing, pressure washing.Start inspection on VFD, PLC and UPS for top drive. 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION PJSM,Continue thaw and cleanup mud from rig. Concentrating on SCR room and cold start 0:00 6:00 6.00 generator. Pressure washing in cellar area. Rig up heater and lights in boiler hot well room.Turn on lights in pump room.Continue 6:00 12:00 6.00 cleaning in pump room and VFD room. Continue cleaning in VFD house.Power wash motor room breeze way.Cleaning in pump room. 12:00 0:00 12.00 State ADEC reps toured sight taking more photographs. Pressure wash in mezzanine area.Start scraping and leveling west side pad for removal of casing from pipe shed.Canrig technicians inspecting cold start generator and other 3 generators.Annular BOP and top drive continue to remain tarped and heating. New command Telephone#for Q-2:Security 1-907-685-1949, Bob jones-1-907-685- 1941,Company Man 1-907-685-1946, Monitor well with remote gas detectors and hand held monitors. Well has been quite, no detectible gas. REPSOL E&P USA INC. REPlO1 U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT mom. Temp-49/wind 9 mph SSW/Wind chill-49 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 175 cu yds 910 cu yds 425 cu yds Aprox. 485 cu yds REPORT DATE: 2/27/2012 Thawed mud 290 bbls 1376 bbls 1376 bbls N/A MD(ft): 2515' Cuttings 15 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 129bbls 853 bbls N/A N/A SUPV ON LOC: Brad Rasch/ Mike Grubb Fuel used 4438 gal. Fuel on hand 20275 gal. STATUS CURRENT @ 05:00HRS: Monitor well,cleaning up mud in SCR room and generator, power washing in pump room.Running cold start gen. 24 HR SUMMARY: Organize equipment and personal for future operations.Continue thawing,pressure washing.Continue inspection on VFD,PLC and UPS for top drive.Power up cold start gen and 3 generator. 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing.Remove casing from pipe shed. Remove pipe shed for area to spot wireline. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DU(h RATION OPERATION DESCRIPTION PJSM,Continue thaw and cleanup mud from rig.Concentrating on SCR room and cold start 0:00 6:00 6.00 generator.Start megging to checking electrical cables for dead shorts from SCR to motors in all cabinets.Finish grading west side of pad for removal of casing from pipe shed. 6:00 18:00 12.00 Start meging cables from rig generators to VFD room continue cleaning in VFD room under cabinets and steaming in subase,and drawworks mezzanine.Prep area for cuttings tank modify ends of tank,install final divertor section and set tank in position,site visit with SLB wireline.Started cold start engine,and#3 engine. Continue heating and cleaning in VFD room and generator areas.Energize lighting and electric 18:00 0:00 6.00 heat in dog house to warm up electronics.Power wash draw works level.Clean walk ways next to cellar and work twards choke manifold.Plumb steam from mobile boilers to sub steam heaters,working no apparent damage.Review shut down and rig evacuation procedure with crews. Site visit buy 2 reps ADEC,and 1 rep ADNR. New command Telephone#for 0-2:Security 1-907-685-1949,Bob Jones-1-907-685- 1941,Company Man 1-907-685-1946, Monitor well with remote gas detectors and hand held monitors. Well has been quite,no detectible gas. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-44/wind 10 mph SSW/Wind chill-71 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 50 cu yds 910 cu yds 475 cu yds Aprox. 435 cu yds REPORT DATE: 2/28/2012 Thawed mud 116 bbls 1550 bbls 1550 bbls N/A MD(ft): 2515' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 200bbls 1053 bbls N/A N/A SUPV ON LOC: Brad Rasch/ Mike Grubb Fuel used on mobile equip 2847 gal./Rig fuel used 222 gal Fuel on hand 19138 gal. STATUS CURRENT @ 05:OOHRS: Monitor well,cleaning up mud in SCR room and generator, power washing in choke house.Running cold start gen.. Move out casing and start moving pipe shed. Organize equipment and personal for future operations.Continue thawing, pressure washing.Continue cleaning 24 HR SUMMARY: and inspection on VFD, PLC and UPS for top drive. 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing. Finish removal of pipe shed for area to spot wireline. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION PJSM,Continue thaw and cleanup mud from rig.Concentrating on SCR room and cold start 0:00 6:00 6.00 generator. Start cold start generator and#3 generator.Continue heating VFD room.Continue heating doghouse electronics.Thaw and cleaning down along cellar hallway to choke room. Hook up steam in mud pits,thawing mud in sub,Start installing protectors and removing 13- 6:00 18:00 12.00 3/8"csg from pipe shed,hook up steam lines to keep guzzler trucks from freezing, removing lugs and electrical connections cleaning and re-terminating in VFD house,cleaning under and behind VFD cabnits,finish inspection and start#2 generator engine. Lighting and electric heaters running off rig power.Site visit Boots and Coots coil tubing if needed. XO needed for wireline and pumping operations(4 1/16" 5M X 4-1/2" IF)arrived.Continue 18:00 0:00 6.00 clean electrical connections and inspect plugs.Continue clean and steam in choke house. Start up and load test generators 2&4 and shut down.Chip and clean up ice and mud on rig floor. Site visit by AOGCC John Crisp,2 observers from Nuiqsut village,and 3 ADEC New command Telephone#for Q-2:Security 1-907-685-1949,Bob Jones-1-907-685- 1941,Company Man 1-907-685-1946,(phonesout Use 907-770-6192/907-770-6183) Monitor well with remote gas detectors and hand held monitors. Well has been quite, no detectible gas. REPSOL E&P USA INC. REPSOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-44/wind 4 mph S/Wind chill-58 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 75 cu yds 910 cu yds 550 cu yds Aprox. 360 cu yds REPORT DATE: 2/29/2012 Thawed mud 174 bbls 1724 bbls 1724 bbls N/A MD(ft): 2515' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 128bbls 1181 bbls N/A N/A SUPV ON LOC: Brad Rasch/ Mike Grubb Fuel used on mobile equip 4227 gal./Rig fuel used 296 gal Fuel on hand 18842 gal. STATUS Monitor well,cleaning up mud in SCR room and generator, Running cold start gen.. Inspect and cleaning mud CURRENT @ 05:00HRS: pumps. Organize equipment and personal for future operations.Continue thawing, pressure washing.Continue cleaning 24 HR SUMMARY: VFD.Test top drive functions without moving pipe.Test generator E-stop.Finish removal of 4 sections of pipe shed. 24 HR FORECAST: Continue monitoring Q2 pad and well,stage equipment for well kill operation,continue thawing.Prep for wire line operations. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DU(h RATION OPERATION DESCRIPTION Continue rig thaw and clean up. Finish unloading 13 3/8 casing from pipe shed.Rig down 0:00 6:00 6.00 elecrical and hydraulics on long side of pipe shed.Move 4 sections of pipe shed. Cleaning in cellar and pump room area. Power up top drive and drawworks.Contact AOGCC at 08:00 to witness closure of annular 6:00 9:00 3.00 preventer for 3-1-12 9:00 12:00 3.00 Test and verify emergency shut downs for generators and VFD.Continue clean up in cellar Hook up hydraulic on top drive and function test robotics without rotation or movement of 12:00 0:00 12.00 drill pipe. Make up and prep 4.51F PxP to 4 1/16" 5m flange for wire line operation.Open up rig pumps for inspection and cleaning.Continue rig clean up. New command Telephone#for Q-2:Security 1-907-685-1949, Bob Jones-1-907-685- 1941,Company Man 1-907-685-1946 Monitor well with remote gas detectors and hand held monitors. Well has been quite, no detectible gas. REPSOL E&P USA INC. REPJOI U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT mom Temp-51/wind 5 mph S/Wind chill-63 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 36 cu yds 910 cu yds 586 cu yds Aprox. 324 cu yds REPORT DATE: 3/1/2012 Thawed mud 8 bbls 1732 bbls 1732 bbls N/A MD(ft): 2515' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 46 bbls 1227 bbls N/A N/A SUPV ON LOC: Brad Rasch/ Mike Grubb Fuel used on mobile equip 3833 gal./Rig fuel used 506 gal Fuel on hand 18336 gal. STATUS CURRENT @ 05:OOHRS: Monitor well,continue to clean SCR room.Pick up and install wire line valve.Wait on Halliburton wire line. 24 HR SUMMARY: Clean rig,drain and inspect mud pumps,Prep and close diverter,rig up for wireline op's 24 HR FORECAST: Continue monitor Q-2 pad and well.Stage equipment for well kill operation.Continue clean and inspect rig. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 7:30 7.50 Cleaning rig,drain and inspect mud pumps,stage equipment for wireline operations. Clear pad's hot zone of trucks,hot air heaters near subase,and nonessential personal.PJSM 7:30 8:30 1.00 with WWC,NAD, Repsol rep's,and AOGCC rep.head count of personal in hot zone. Close diverter,verify by looking down watching bag close,verify closing pressure 1550psi,block 8:30 9:00 0.50 in annular with ball valves on annular. (Witnessed by Mr.John Crisp of AOGCC)set slips. Bleed down drill pipe-Open TD valves Start bleeding dp with 2X2 valve on TD goose neck, not 9:00 12:30 3.50 slowing down,shut in,rig up hard line to bottom beaver slide,DP 600psi,bleed and monitor f/gas,last 100psi+/-detected 20-25%LEL,shut in monitor build 30 min 50psi.Bleed off monitor f/gas,18%LEL,shut in 15 min,l5psi bleed off monitor 5%LEL monitor openl0 min,no gas no flow 12:30 17:00 4.50 Close lower TD valve remove clamp,break off TD above lower IBOP rig up scaffolding,around stump,make up flanged XO's and install 5K gate valve for wireline operations.Clean up tools. Wait on wireline equip.and personal.Continue cleaning up rig.Torque up OTIS WL connection 17:00 20:00 2.50 to 4 1/16"5m gate Meet with Halliburton wire line to discuss tool recommendations and logging runs Spot truck, 20:00 23:30 3.50 lay out tools and rehead.Make up grease head.Rig down hard line on beaver slide. 23:30 0:00 0.50 Pick up wireline valve.Start wireline rig up. 2 visitors from ADEC today. Monitor well with remote gas detectors and hand held monitors.No detectible gas around rig. Continuous watch on diverter line. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT mom Temp-44/wind 8 mph S SW/Wind chill-68 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 182 cu yds 910 cu yds 768 cu yds Aprox. 142 cu yds REPORT DATE: 3/2/2012 Thawed mud 68 bbls 1800 bbls 1800 bbls N/A MD(ft): 2515' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 303 bbls 1530 bbls N/A N/A SUPV ON LOC: B.Rasch/MGrubb/S.McGeehan Fuel used on mobile equip 4495 gal./Rig fuel used 296 gal Fuel on hand 18040 gal. STATUS CURRENT @ 05:00HRS: Cleaning rig and cleaning out cellar. 24 HR SUMMARY: Rig up wireline,wireline crew rest,rig up wireline,test lub. Repair leaks,test lub to 1500psi open well 500psi on drill pipe,RIH tag 1126'WLM POOH close in drill pipe with 500psi bleed off. Rig down wireline. 24 HR FORECAST: Finish rig down wireline.Clean out cellar.Prep to and fill annulus,Plan for mobilize coil tubing equipment. Cleaning rig. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 2:30 2.50 Rig up wire line,stage equipment for wireline operations. 2:30 8:30 6.00 While waiting on wireline crew to rest.Clean and organize rig floor. 8:30 15:00 6.50 Continue Rigging up wireline.Pick up tools,stab lub. 15:00 19:00 4.00 Test lub.Repair leaks,test 1500psi hold 15 min,good test.Bleed down to 600psi. 19:00 22:00 1.50 Open drill pipe pressure stabilized 500psi,RIH with 1 11/16"od logging tools(CCL,Gamma,CBL total length 28.55)2040hrs Tag at 1126'WLM unable to pass POOH with logging tools.Close in in drill pipe with 500psi bleed off monitor 11%LEL at final bleeding. 22:00 0:00 2.00 Rig down wireline. AOGCC rep on site watching wireline operations. Monitor well with remote gas detectors and hand held monitors.No detectible gas around rig. Rig's gas alarms up and running.Continuous watch on diverter line. REPSOL E&P USA INC. REPJOt U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-37/wind 13 mph S SW/Wind chill-65 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 202 cu yds 1745 cu yds 950 cu yds Aprox.795 cu yds REPORT DATE: 3/3/2012 Thawed mud 58 bbls 1858 bbls 1858 bbls N/A MD(ft): 2515' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 38 bbls 1568 bbls N/A N/A SUPV ON LOC: S.McGeehan/B.Rasch Fuel used on mobile equip 2512 gal./Rig fuel used 44 gal Fuel on hand 17996 gal. STATUS CURRENT @ 05:00HRS: Thawing and cleaning cellar,and rig.Working on#2 mud pump. Finish rig down wireline.Thawing and clean out cellar. Prep to fill annulus. Plan for mobilize coil tubing 24 HR SUMMARY: equipment,and equipment for coil operations.Cleaning rig. 24 HR FORECAST: Clean rig,clean out cellar,work on mud pumps, prep for coil operations. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 2:00 2.00 Rig down wireline. Cleaning rig,thawing and clean out celler for access to valves on conductor. Remove discharge 2:00 12:00 10.00 manifold from#2 mud pump. Continue cleaning rig,thawing and cleanout celler to access valves on conductor,move MI mud 12:00 0:00 12.00 man shack out of hot zone,setting up shacks for mud man&safety man out side hot zone. Attempting to pull fluid from cellar,thaw out super sucker, Daylight crew held evacuation drill all hands in hot zone accounted for 8 min.discussed responsibilities. Remove mud end from #2 mud pump for replacement. 2 ADEC reps site visit. Added 835 cu yards to frozen debris pile from cleaning where pipe shed was removed and around rig's perimeters near rig berm's Cruz still working on cleaning pad. Monitor well with remote gas detectors and hand held monitors. No detectible gas around rig. Rig's gas alarms up and running.Continuous watch on diverter line. REPSOL E&P USA INC. REPloc U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-39/wind 13 mph S SW/Wind chill-67 LDaily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 154 cu yds 1915 cu yds 1099 cu yds Aprox.816 cu yds REPORT DATE: 3/4/2012 Thawed mud 39 bbls 1861 bbls 1861 bbls N/A MD(ft): 2515' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 29 bbls 1597 bbls N/A N/A SUPV ON LOC: S. McGeehan/B. Rasch Fuel used on mobile equip 3671 gal./Rig fuel used 222 gal Fuel on hand 17774 gal. STATUS CURRENT @ 05:00HRS: Cleaning rig,thaw teller,and in pipe shed. 24 HR SUMMARY: Clean rig,clean out cellar,work on mud pumps, prep for coil operations.Steam to unhook hydraulic lines for West side pipe shed removal. 24 HR FORECAST: Clean rig, remove West side pipe shed,bring in Coil tubing equipment,and start rigging up. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 12:00 12.00 Thawing and cleaning cellar to access valves on diverter.Clean rig.Working on#2 mud pump Thawing and cleaning out cellar,Thaw and suck out fluid off drillers side pipe shed and clear 12:00 0:00 12.00 hydraulic lines prep.to move shed section for coil op's.Inspecting,repairing water lines in pits working on#2 pump prep for installing new pod. Cleaning rig Corrections made to manifested material removed from site. 2 ADEC reps site visit. 1 Nuiqsut villager and 1 North Slope Borough reps made site visit. Added 85 cu yards to frozen debris pile from cleaning where pipe shed was removed and around rig's perimeters near rig berm's Cruz still working on cleaning pad. Monitor well with remote gas detectors and hand held monitors. No detectible gas around rig. Rig's gas alarms up and running.Continuous watch on diverter line. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-37/wind 4 mph N NW/Wind chill-50 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 220 cu yds 1915 cu yds 1319 cu yds Aprox. 596 cu yds REPORT DATE: 3/5/2012 Thawed mud 0 bbls 1861 bbls 1861 bbls N/A MD(ft): 2515' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 36 bbls 1633 bbls N/A N/A SUPV ON LOC: S. McGeehan/B.Rasch Fuel used on mobile equip 4150 gal./Rig fuel used 222 gal Fuel on hand 17552 gal. STATUS CURRENT @ 05:00HRS: Cleaning rig,thaw celler,work on mud pumps Clean rig, remove off drillers side pipe shed,thawing cellar, plumb off valves on conductor. Bring in Coil tubing 24 HR SUMMARY: equipment spot unit and Peak crane. 24 HR FORECAST: Rig up coil equipment,test coil BOPE,fill annulus with 12.5ppg mud. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Clean rig,thaw cellar to access valves on conductor, plumb in from 4"valve to 3"and thaw on 0:00 12:00 12.00 pipe shed East side. Continue rebuilding mud pumps fluid ends. Clean rig,work on rebuilding mud pumps,free up and move East side pipe shed.Continue 12:00 16:00 4.00 thawing celler keep fluid level below valves on conductor. Repairing water lines through pits Coil crew arrives, discuss rig up with Repsol Co. Rep's and Nabors Pusher's and WWC.Discuss 16:00 18:00 2.00 planed operation. Remove 4-1/16"flange X 4-1/2"Otis connection from gate valve on drill pipe.Spot coil unit set 18:00 23:00 5.00 up containment,spot crane,set up hot air heater on coil unit hydraluics.Coil crew rest 23:00 0:00 1.00 Continue cleaning rig working on mud pump,and repairing water lines. Site Visiters-2 ADEC, 1 North Slope Borough, 1 KSOP Monitor well with remote gas detectors and hand held monitors. No detectible gas around rig. Rig's gas alarms up and running.Continuous watch on diverter line. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT womm'■ Temp-29/wind 18 mph SW/Wind chill-59 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 202 cu yds 2040 cu yds 1521 cu yds Aprox.519 cu yds REPORT DATE: 3/6/2012 Thawed mud 0 bbls 1861 bbls 1861 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 22 bbls 1655 bbls N/A N/A SUPV ON LOC: S.McGeehan/B.Rasch Fuel used on mobile equip 4002 gal./Rig fuel used 222 gal Fuel on hand 17330 gal. STATUS CURRENT @ 05:00HRS: Cleaning rig,work on mud pump,inspecting and repairing water lines. 24 HR SUMMARY: Clean rig,work on mud pumps,spot diffuser tank,rig up coil tubing equipment and pumping iron.Rig up check valve on one conductor valve for filling. 24 HR FORECAST: Finish rig up coil equipment,test coil BOP and choke.Fill backside,clean out drill pipe with coil,displace drill pipe with K form. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DU(Rh ATI OPERATION DESCRIPTION Coil crew rest.Rig crews continue cleaning rig,working on mud pumps,thaw and pull out fluid 0:00 9:00 9.00 from cellar,receive diffuser tank,spot and berm in. Clean out conex stage in position for choke manifold to be put in.Insure plug on diverter line is 9:00 12:00 3.00 accessible.Coil crew ready equipment.Set coil BOPE on drill pipe with crane. Rig up coil tubing equipment, BOP control lines,and one section lubricator,make up pumping 12:00 22:00 10.00 lines. Coil crew rest.Rig crew continue rigging up hard lines for choke line.Set choke in conex rig up 22:00 0:00 2.00 lines.And rig up line down stream choke to diffuser tank. (Rig crews continue cleaning rig,work on mud pumps.And thaw in cellar.) Added approx. 125 cu.yards frozen debris from west side pad cleanup from pipe shed removal. Site Visitors-3 ADEC/@ 1500hrs.contacted AOGCC about up coming coil BOP test Monitor well with remote gas detectors and hand held monitors.No detectible gas around rig. Rig's gas alarms up and running.Continuous watch on diverter line. REP5OL E&P USA INC. REPlOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-27/wind 13 mph SW/Wind chill-53 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 166 cu yds 2040 cu yds 1687 cu yds Aprox.355 cu yds REPORT DATE: 3/7/2012 Thawed mud 58 bbls 1919 bbls 1919 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 44 bbls 1699 bbls N/A N/A SUPV ON LOC: S.McGeehan/B.Rasch Fuel used on mobile equip 3715 gal./Rig fuel used 222 gal Fuel on hand 17330 gal. STATUS CURRENT @ 05:00HRS: Prep to spot hot oil truck,rig up to coil unit. 24 HR SUMMARY: Coil crew rest.Rig up choke manifold,and choke lines.Pressure test with air 120psi.Plumb on conductor valve (ODS)rig up coil unit. 24 HR FORECAST: Fill coil,test Coil BOPE,clean out drill pipe., rig down coil. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Coil crew rest.Rig crew rig up iron,from coil BOP mud cross to choke manifold,and down 0:00 9:00 9.00 stream choke to diffuser tank. Work on mud pumps,cleaning rig, blow lines with air and pressure test lines to 120psi with air.Plumb in check valve on off drillers side conductor valve. Clean rig,work on mud pumps. 9:00 12:00 3.00 Prep to pick up injector head.String out and make up hydraulic hoses to coil BOP. Attempt to pick coil injector,to weight to heavy for single line on crane,order sheave for 12:00 20:30 8.50 double line crane lift line.Steam ice and suck out from pits,thaw ice in rig water tank, inspecting and repairing water lines through rig.Prep to start rig boiler.Clear debris from rig choke house, remove choke house heater for thawing.(crane two line block arrive 1930hrs.) Pick up and stab injector head.Tie off hydraulic lines at top rig windwalls.Secure coil 20:30 0:00 3.50 operations. Coil crew rest. Site Visitors-2 ADEC/@ 0930 hrs Contacted AOGCC about up coming coil BOP test,Discussed with inspector at 1930 hrs for up date. Monitor well with remote gas detectors and hand held monitors.No detectible gas around rig. Rig's gas alarms up and running.Continuous watch on diverter line. REPSOL E&P USA INC. REP-1'01 U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT 411 Temp-38/wind 6 mph W/Wind chill-57 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 166 cu yds 2040 cu yds 1853 cu yds Aprox. 189 cu yds REPORT DATE: 3/8/2012 Thawed mud 58 bbls 1977 bbls 1977 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 114 bbls 1813 bbls N/A N/A SUPV ON LOC: S. McGeehan/B. Rasch Fuel used on mobile equip 4273ga1./Rig fuel used 204 gal Fuel on hand 17108 gal. STATUS CURRENT @ 05:00HRS: Coil crew,Hot oil crew rest, Rig crew cleaning rig,thawing and cleaning mud pits. 24 HR SUMMARY: Rig up hot oil truck,fill coil with diesel,Test coil BOPE(AOGCC rep Jeff Jones witness test.) Finish test coil BOPE,coil and hot oil crew rest, repair manual choke A, make up coil BHA fill annulus,clean out 24 HR FORECAST: drill pipe. Rig down coil OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Coil crew rest, Rig crew grease valves on choke manifold,suck out cellar,and re-plumb check 0:00 6:00 6.00 valve on conductor valve(horizontal),Clean rig,work on mud pumps and rig H2O lines. 6:00 7:00 1.00 Spot and rig up hot oil truck fill coil with diesel, Rig up to test coil BOPE Test rig gas alarms,Test Coil BOP and choke equipment 250/2500 psi.3 failures,2 were 7:00 0:00 17.00 repaired to a pass,and will be getting replacement parts from Anchorage for 3rd failure in the morning 3-9-12.Should be on site to repair manual choke A(ETA on site 1100hrs.) Rig crews thawing and cleaning pits while testing AOGCC rep Jeff Jones witness BOP test Monitor well with remote gas detectors and hand held monitors. No detectible gas around rig. Rig's gas alarms up and running.Continuous watch on diverter line. REPSOL E&P USA INC. REpfoc U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT 11'n11111111111 Temp-43/wind 6 mph SW/Wind chill-66 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 110 cu yds 2040 cu yds 1963 cu yds Aprox.79 cu yds REPORT DATE: 3/9/2012 Thawed mud 0 bbls 1977 bbls 1977 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 90 bbls 1903 bbls N/A N/A SUPV ON LOC: S. McGeehan/Mike Grubb Fuel used on mobile equip 4654 gal./Rig fuel used 203 gal Fuel on hand 16904 gal. STATUS CURRENT @ 05:00HRS: Coil crew, Hot oil crew rest,Rig crew cleaning rig,thawing and cleaning mud pits. Rig up hot oil truck,fill coil with diesel,Test coil BOPE(AOGCC rep Jeff Jones,Chuck Scheve witness test.)Fill 24 HR SUMMARY: annulus,thaw and cleanout drill pipe. 24 HR FORECAST: Displase diesel with brine, blow out coil. Rig down coil. Rig up wire line. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Test BOPE 250/2500 witness by AOGCC Jeff Jones.Test pipe rams,choke flow test. (choke A 0:00 1:00 1.00 failed leak in stem bonnet.)accumulator draw down test. 1:00 8:00 7.00 Coil crew hot oil crew rest, Rig crews continue cleaning rig,cleaning pits. 8:00 10:00 2.00 Pull coil injector head. Install jet on coil. Reinstall injector head. 10:00 12:00 2.00 While waiting on parts to repair choke A,continue steaming and suck out pits. Repair choke A. Continue test BOPE 250/2500 witness by AOGCC Chuck Shieve.,choke flow test on A. Pressure 12:00 13:30 1.50 test lubricator. Pump 130 bbls of 12.5 ppg down annulus,good returns to diverter tank. Run in drill pipe with 13:30 16:00 2.50 coil tag at 1182'wash through and continue to wash to bottom.(2455'CT measurment) Pump 102 bbls total of hot diesel at.75 BPH @1200 psi on coil, holding 600 psi on choke 16:00 17:00 1.00 dropping to 400 psi in 15 min.,ciculate bottoms up and pull out of hole. 17:00 18:00 1.00 Shut in and purge lubricator and choke with clean diesel. Wait on brine.Clean out possum bellies,clean off shakers.Steaming mud outside VFD in 18:00 0:00 6.00 breezway.Continue empting pits of mud. AOGCC rep Jeff Jones/Chuck Scheve witness BOP test Monitor well with remote gas detectors and hand held monitors. No detectible gas around rig. Rig's gas alarms up and running.Continuous watch on diverter line. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-24/wind 18 mph WSW/Wind chill-52 LDaily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 130 cu yds 2169 cu yds 2093 cu yds Aprox.80 cu yds REPORT DATE: 3/10/2012 Thawed mud 58 bbls 2035 bbls 2035 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 76 bbls 1979 bbls N/A N/A SUPV ON LOC: S.McGeehan/Mike Grubb Fuel used on mobile equip 3814 gal./Rig fuel used 259 gal Fuel on hand 16442 gal. STATUS CURRENT @ 05:OOHRS: Coil tubing rigged down.Clearing floor of casing tools,slips bowl and centrilizers.Start rigging down choke manifold. 24 HR SUMMARY; Steam and empty pits.RIH with coil,displace diesel with potassium formate, chase potassium formate down coil with diesel and bull head&LOT.Rigging down coil. 24 HR FORECAST: Rig up wireline and log.Rig down wire line.Rig up to attempt to move drill pipe. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Continue steam and clean pits. Rebuild boiler water pump.Prep to Install gasket for header on 0:00 9:00 9.00 mud pump#land#2. 9:00 10:00 1.00 Pump 12 bbls of 9.4 ppg mud down annulus. Run in hole with coil tubing to 2455'. Displace drill pipe with 76 bbls of 11.4 ppg potassium 10:00 13:00 3.00 formate.Chased with 27 bbls total of diesel.Final 7 bbls of diesel chased potasium formate down coil used to bull head and leak off.First test pumped 1.3 bbls at.25 bbls per min. leak off at 2117 psi with 1500psi on choke,blead down to 18 psi.Second test pumped 1 bbl at.25 bpm.Pressure up to 2000 psi on coil and choke,open choke and bled down to 1100 psi in 2 min.with 1100 psi on choke,open choke bleed to 0.Third test pumped 2.25 bbls at.25 bpm 954 psi with 480 psi on choke,bled to 0.Fourth and final test pumped 2.75 bbls at.25 bpm pressured up to 430 psi on coil with 39 psi on choke,bled down to 0.POH with coil. Rig down Little Red.Stage nitrogen truck.Pressure test nitrogen lines.Blow down coil tubing, 13:00 17:00 4.00 lines and choke manifold.Allow pressure to bleed off. Rig down hard line on kill side.Rig down injector head. Break off otis connection,swing injector 17:00 0:00 7.00 to side and break off BHA.Reconnect riser and remove injector.Rig down choke side hard line. hard line. Monitor well with remote gas detectors and hand held monitors.No detectible gas around rig. Rig's gas alarms up and running.Continuous watch on diverter line. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT mom Temp-6/wind 12 mph WSW/Wind chill-25 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 56 cu yds 2169 cu yds 2131 cu yds Aprox.42 cu yds REPORT DATE: 3/11/2012 Thawed mud 58 bbls 2093 bbls 2093 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 48 bbls 2027 bbls N/A N/A SUPV ON LOC: S.McGeehan/Mike Grubb Fuel used on mobile equip 4518 gal./Rig fuel used 185 gal Fuel on hand 16257 gal. STATUS CURRENT @ 05:00HRS: Rig down wire line.Lay down x-o,valve and double pin. 24 HR SUMMARY: Rig down coil tubing.Rig up wire line and log to 2434'wire line measurement. 24 HR FORECAST: Rig down wire line.Rig up Schlumberger to be ready to pump and attempt to move drill pipe. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 9:00 9.00 Rig down coil tubing unit,lubricator and BOPs.Work on mud pumps. 9:00 11:00 2.00 Rig down crane.Lay down casing tools. 11:00 20:00 9.00 Rig up Halliburton wireline unit.Test lubricator 250/1500 psi for 5 min.(good test) 20:00 21:30 1.50 Run in hole and log to 2434'(wire line measurement). 21:30 23:00 1.50 Work tool free from top of float. Log from 2434'to surface.Possible continuity between pipe and formation 1326'-1396'and 23:00 0:00 1.00 1610'-1710'. Continuous diverter watch. Correction 18 cu yds adjusted off manifested total of ice and mud(manifest counted twice on 3/6/12). REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT .... Temp-29/wind 7 mph NE/Wind chill-48 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 56 cu yds 2269 cu yds 2187 cu yds Aprox.82 cu yds REPORT DATE: 3/12/2012 Thawed mud 0 bbls 2093 bbls 2093 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 72 bbls 2099 bbls N/A N/A SUPV ON LOC: S. McGeehan/Mike Grubb Fuel used on mobile equip 4852 gal./Rig fuel used 777 gal Fuel on hand 15480 gal. STATUS CURRENT @ 05:00HRS: Rig down hard line from pipe skate.Spot wire line. 24 HR SUMMARY: Rig down wire line.Screw into drill pipe and rig up schlumberger and attemt to move pipe. 24 HR FORECAST: Rig up wire line and free point. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 3:00 3.00 Rig down wire line. Rig down valves and x-o from drill pipe. Fire up rig boilers.Waiting on scaffolding crew and 3:00 9:00 6.00 Schlumberger pump truck. Rig up Schlumberger hard line.Spot tiger tank and plumb hard line.Spot little red and vac 9:00 18:00 9.00 trucks. 18:00 19:30 1.50 Fill and test lines to 2000 psi. Function test annular. Work pipe slack off 60k, PU to 150k. Begain pumping diesel @ .5 bpm,4 bbls max pressure 430 19:30 0:00 4.50 psi.Continue working pipe pumping periodically to 25k down and 275k up with toque at 25 k. Total diesel pumped 18 bbls.Stretch calculations stuck point at approximatly 548'. Continuous diverter watch. REPSOL E&P USA INC. REP(OL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT memeso Temp-34/wind 7 mph NNE/Wind chill-54 I Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 84 cu yds 2269 cu yds 2243 cu yds Aprox.0 cu yds REPORT DATE: 3/13/2012 Thawed mud 0 bbls 2093 bbls 2093 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 100 bbls 2199 bbls N/A N/A SUPV ON LOC: S.McGeehan/Mike Grubb Fuel used on mobile equip 5278 gal./Rig fuel used 1073 gal Fuel on hand 14407 gal. STATUS CURRENT @ 05:00HRS: Pressure test lines for cement job. 24 HR SUMMARY: Continue work stuck pipe.Rig up and perf F/2340'-2342'.Rig down wire and rigging up cementers. 24 HR FORECAST: Cement through perfs at 2340'-2342'.Tag cement and run CBL. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DURATION OPERATION DESCRIPTION (hrs) 0:00 2:00 2.00 Continue work pipe,25 to 275k. 2:00 5:30 3.50 Blow down lines,rig down some Sclhumberger hard lines. 5:30 6:30 1.00 Rig down scaffolding. 6:30 17:00 10.50 Rig up wire line.Test lubricator 250/1500 psi. 17:00 18:30 1.50 Run in hole.Perforate 2340'-2342',4spf,2 feet long, .42"hole diameter. 18:30 0:00 5.50 Rig down wire line.Clean and organize floor.Rig up hard line to kill tank and rig floor. Lou from AOGCC here. Continuous diverter watch. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT ersom Temp-35/wind 0 mph NNE/Wind chill-35 IDaily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 36 cu yds 2314 cu yds 2279cu yds Aprox.35 cu yds REPORT DATE: 3/14/2012 Thawed mud 38 bbls 2131 bbls 2131 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 100 bbls 2299 bbls N/A N/A SUPV ON LOC: S.McGeehan/Mike Grubb Fuel used on mobile equip 7175 gal./Rig fuel used 1447 gal Fuel on hand 12960 gal. STATUS CURRENT @ 05:00HRS: Cleaning pits and cellar area while waiting on cement delivery.Clean up around pipe shed.Thawing kelly hose. 24 HR SUMMARY: Preform Injectivity test.Cement through perfs @ 2340'leaving 200'in drill pipe.Test cement plug to 500 psi. Rig up wire line and pert 2'@ 1750'4 spf.42".R/D wire line,R/U to cement. 24 HR FORECAST: Cement through perfs at 1750'.Perf at 1450'. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DURATION OPERATION DESCRIPTION (hrs) 0:00 4:00 4.00 Rig up hard lines for cement job. 4:00 5:00 1.00 PJSM for cement job.Preheat diesel to 90 degees 5:00 6:00 1.00 Pressure test lines to 3500 psi.,Stage up injectivity test up to 3.5 bpm diesel at 1100 psi. 6:00 7:00 1.00 Pump 5 bbls water, Mix and pump 129.7 bbls 15.8 ppg class G cement.Drop wiper ball and chase with 3 bbls water and displace with 32 bbls diesel(cement in place at 06:45).Shut in tiw. TIW valve(drill pipe pressure 800 psi). 7:00 11:00 5.00 Blow down hard lines and rig down Schlumberger. 11:00 16:30 5.50 Rig up wire line. Run in hole with guns.Pressure test cement plug in drill pipe to 500 psi. Perforate @ 1750'4spf, 16:30 17:30 1.00 2 feet long,.42 hole diameter. 17:30 19:30 2.00 Rig down wire line. 19:30 0:00 4.50 Rig up pumping manifold and hard line for cement job. Continuous diverter watch. REPSOL E&P USA INC. REP$0L U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Vim Temp-45/wind 6 mph NNE/Wind chill-65 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 18 cu yds 2314 cu yds 2297cu yds Aprox. 17 cu yds REPORT DATE: 3/15/2012 Thawed mud 0 bbls 2131 bbls 2131 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 100 bbls 2399 bbls N/A N/A SUPV ON LOC: S. McGeehan/Mike Grubb Fuel used on mobile equip 7175 gal./Rig fuel used 1110 gal Fuel on hand 11850 gal. STATUS CURRENT @ 05:00HRS: Test plug to 1300 psi for 10 min. Rig down test equipment. Rig up wire line. 24 HR SUMMARY: Test lines to 3500 psi.Preform injectivity test. Pump 207 bbls Artic set 1 cement.Rig down and clean up while waiting on cement. 24 HR FORECAST: Pressure test plug to1300psi. Pref at 1450'.Squeeze and spot plug. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Rig down hardline to kill tank,clear ice away for pipe shed, rig up hardline.Thaw out stand 0:00 10:00 10.00 pipe,remove kelly hose and shock hose.Thawing out choke house and walk way. Cleaning pits. 10:00 12:00 2.00 PJSM,test lines to 3500psi 12:00 0:00 1.00 Preform injectivity test at 4 bpm 700 psi, bullhead 13 bbls diesel. Pump 207 bbls Artic set 1 15.8 ppg cement @4.2 bpm 1000 psi. Pump 1bbl water drop ball and 13:00 14:00 1.00 chase with 2 bbls water and 26 bbls diesel (slow to 2 bpm,SIDPP 800 psi) Rig down Sperry unit. Pressure test new standpipe and install. Pick up and make up hoses. 14:00 0:00 10.00 Finish thawing kelly hose. Load out casing.Cleaning in cellar. Continuous diverter watch. REPSOL E&P USA INC. REP$OI U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-48/wind 9 mph S/Wind chill-74 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 0 cu yds 2314 cu yds 2297cu yds Aprox.17 cu yds REPORT DATE: 3/16/2012 Thawed mud 0 bbls 2131 bbls 2131 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 180 bbls 2579 bbls N/A N/A SUPV ON LOC: S.McGeehan/M.Grubb/B.Rasch Fuel used on mobile equip 6450 gal./Rig fuel used 1110 gal Fuel on hand 10740 ga STATUS CURRENT @ 05:00HRS: WOC-cleaning rig, rig up test pump. Test cement plug to 1300 psi for 10 minutes.Rig down test equipment.Rig up wire line.Perf 1349', pooh and rig 24 HR SUMMARY: down wireline. Rig up pump iron,test 1000/3800psi,pump 103bbIs AS1 cmt displace with lbbl water,and 16bbls diesel,CIP 1745hrs.WOC 24 HR FORECAST: WOC,test cmt inside drillpipe to 800psi rig up wireline,test lub,RIH sever drillpipe 750'+/-work pipe and circ clean up well,pump cmt until returns at surface.POOH with drillpipe. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DURATION OPERATION DESCRIPTION (hrs) 0:00 2:00 2.00 Continue thaw on kelly hose. Pressure test cement plug above perfs at 1750'to 1300 psi for 10 min.(good test).Lou Grimaldi 2:00 2:30 0.50 from AOGCC here to verify. 2:30 4:00 1.50 Rig down test equipment and hard line. Rig up wire line.Fill and attempt pressure test on lub, repair leaks test lube to 250/1500psi good 4:00 10:30 6.50 test. @0900 RIH to 1350'with 2'perf gun(guns 4spf 0.42 hole diameter) Fire perf gun 1349'with 500psi on drill pipe,monitor pressure drop to 200psi at firing.POOH 10:30 13:30 3.00 with wireline,rig down wireline(racked lub back against stands of drill pipe) 13:30 17:00 3.50 Rig up SLB iron,test pumping iron 1000psi low and 3800psi high. Injectivety test with diesel 4bpm-450psi.Blow down pumping lines Pump 2bbls water follow with 103bbls 15.7ppg AS1 cmt 4bpm 600psi,pump 1 bbl water,drop 17:00 18:00 1.00 wiper ball 2 bbls water,displace with 16bbls diesel.Slowed down to 2bpm last 6 bbls 300psi 18:00 0:00 6.00 CIP 1745 hrs Close TIW valve on drill pipe.WOC-blow down hard lines,clean mud pits,clean in choke house and centrifugal pump breeze way.Replumb rig test pump. Continuous diverter watch. REPSOL E&P USA INC. REPJOI U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT �■ Temp-46/wind 8 mph S/Wind chill-67 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 0 cu yds 2314 cu yds 2297cu yds Aprox. 17 cu yds REPORT DATE: 3/17/2012 Thawed mud 0 bbls 2131 bbls 2131 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 501 cu yds 456 cu yds Aprox.45 cu yds COSTS: Boiler Water 180 bbls 2579 bbls N/A N/A SUPV ON LOC: M.Grubb/B.Rasch Fuel used on mobile equip 3860 gal./Rig fuel used 1434 gal Fuel on hand 9306 gal. STATUS CURRENT @ 05:00HRS: Pumping cement job. 24 HR SUMMARY: Wait on cement.Test cement plug to 800 psi.Run in hole and shoot collar severing tool at 689'and cut drill pipe circulate and clean hole with 10.2 ppg mud.Rig down and prep to cement. 24 HR FORECAST: Cement hole,lay down drill pipe OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 6:00 6.00 WOC-clean rig,choke house, prep to test cmt plug 6:00 6:30 0.50 Test cement plug in drill pipe to 800 psi for 10 min.(good test). 6:30 7:30 1.00 Rig down hard lines. 7:30 11:00 3.50 Rig up Halliburton wire line.Pressure test lubricator and run in hole. 11:00 11:30 0.50 Calculate offset,set on depth and shoot collar severing tool(2"OD)at 689'.500 psi on held on drill pipe when shot, bled off to 250 psi(12.5 ppg on backside=240 psi differential) 11:30 16:00 4.50 Monitor well.Bleed down lubricator and rig down wire line. 16:00 17:30 1.50 PJSM,fill with diesel and test hard lines 17:30 19:00 1.50 Circulate 10.2 ppg mud and pull and stroke pipe and confirm pipe is free. 19:00 22:00 3.00 Rig down hard Iines.Rig down scaffolding 22:00 23:30 1.50 Rig down Hallliburton wire line lubricator,shieve and weight bar from rig floor. 23:30 0:00 0.50 Laying down top joint with TIW valve. REPSOL E&P USA INC. REPJOI U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT wouns Temp-33/wind 6 mph S/Wind chill-51 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 36 cu yds 2314 cu yds 2333 cu yds Aprox. cu yds REPORT DATE: 3/18/2012 Thawed mud 58 bbls 2189 bbls 2189 bbls N/A MD(ft): 2526' Cuttings 27 cu yds 483 cu yds 483 cu yds Aprox.0 cu yds COSTS: Boiler Water 100 bbls 2679 bbls N/A N/A SUPV ON LOC: M.Grubb/B.Rasch Fuel used on mobile equip 4610 gal./Rig fuel used 1205 gal Fuel on hand 8101 gal. STATUS CURRENT @ 05:00HRS: Continue cleaning and thawing rig and rigs containment warming pipe skate hydraluics. Prep and cmt job pumping 10.7ppg ASL cmt from 657'to surface.Rig down and move out equipment.Cleaning 24 HR SUMMARY: rig,and pad around rig.Spot and rig up minimal pipe shed and shed Tioga heater prepping to lay down drill pipe racked back in derrick. 24 HR FORECAST: Heat up pipe shed hydraulics,lay down drill pipe,continue thawing and cleaning rig and in rigs containment berm. Nipple down diverter stack. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Lay down top joint of drill pipe.Clear floor, rig up pumping iron,PJSM with all involved with cmt 0:00 2:30 2.50 job and AOGCC rep.pump 2 bbls diesel test lines 1000psi low 3800psi high Batch up 10.7 ppg pump 5 bbls water and pump 10.7ppg ASL cmt monitor returns after 60 bbls 2:30 6:30 4.00 cmt pumped-mud returns 10.3 ppg,after 470 bbls cmt pumped 10.7 ppg cmt in returns,pump an additional 50 bbls 10.7ppg cmt w/50bbls 10.7ppg cmt returns,switch and pump 5bbls 11.5ppg cmt CIP 0545hrs wash out cmt lines with water and blow down cmt lines,R/D cmt line (Pumped total 520bbls 10.7ppg ASL cement average 4bpm 70-100 psi)Cement job was witnessed by AOGCC Representative Mr.Lou Grimaldi 6:30 7:30 1.00 POOH with drill pipe stands from 658'. Lay down Halliburton wire line valve.Rig down hard line on rig floor to kill tank and out to 7:30 12:00 4.50 Schlumberger unit.Remove end section of diverter line.Remove tank at end of diverter. Cleaning cellar box,prep pad for minimal reinstallation of pipe shed.Clear floor of unneeded 12:00 15:30 3.50 equipment. 15:30 19:00 3.50 Set in rig mats and spot 3 sections pipe shed,2 on drillers side,and one on off drillers side. Cleaning rig. 19:00 0:00 5.00 Spot pipe shed Tioga and energize to heat up shed and hydraulic system.Continue cleaning rig, cellar,and cleaning around rigs containment berm. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-36/wind 7 mph S SW/Wind chill-56 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 72 cu yds 2314 cu yds 2405 cu yds Aprox. cu yds REPORT DATE: 3/19/2012 Thawed mud 0 bbls 2189 bbls 2189 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds Aprox.0 cu yds COSTS: Boiler Water 110 bbls 2789 bbls N/A N/A SUPV ON LOC: M.Grubb/B.Rasch Fuel used on mobile equip 6108 gal./Rig fuel used 1258 gal Fuel on hand 6843 gal. STATUS CURRENT @ 05:00HRS: cleanning pits,thawing mud in containment 24 HR SUMMARY: Continue cleaning and thawing mats and containment around rig.Warm pipe skate hydraulics.Cleaning mud pits, and rig. Loading out dry mud products for transport to Q4 location. Finish pit cleaning,start repairs on piping in pits(low pressure mud)continue cleaning and thawing around rigs 24 HR FORECAST: containment,and rig cleaning.Lay down drill pipe. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Heating pipe shed and thawing controls and hydraulics for pipe skate.Finish cleaning cellar box 0:00 7:30 7.50 with super sucker.Rig down diverter section from cellar to pipe shed.Steaming diverter section. section.Steam out bleed tank and kill tank. Clean out pits.Steam rig mats and containment around rig.Run power cables to pipe shed,rig 7:30 12:00 4.50 up hydraulic lines to pipe shed.Beed down accumulator. Start loading out dry mud products,cleaning pits,cleaning out pipe shed,clean rig floor,thaw 12:00 0:00 12.00 and suck out ice in rigs berm and between rig sections,suck out diverter tank. REPSOL E&P USA INC. REPIOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT mow Temp-36/wind 4 mph W SW/Wind chill-49 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 186 cu yds 2897 cu yds 2591 cu yds Aprox.cu yds REPORT DATE: 3/20/2012 Thawed mud 58 bbls 2247 bbls 2247 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds Aprox.0 cu yds COSTS: Boiler Water 180 bbls 2969 bbls N/A N/A SUPV ON LOC: M.Grubb/B.Rasch Fuel used on mobile equip 5000 gal./Rig fuel used 1510 gal Fuel on hand 7583 gal. STATUS CURRENT @ 05:00HRS: Thawing rig's containment,nippling down diverter stack 24 HR SUMMARY: Cleaning and thawing mats and containment around rig to remove moduals. Finish cleaning pits and start repairs on low pressure mud lines in pits.install derrick camra, lay down drill pipe from derrick. Finish laying down drillpipe, nipple down diverter stack.Continue thawing and sucking out rig's containment, 24 HR FORECAST: Making repairs to piping in pits.Start moving rig sections to staging area OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Nipple down tree in shop and store in warm up shack. Continue thawing and sucking up around 0:00 3:00 3.00 rig for modual removal. Service pipe skate. Pick up single and break out TIW valve. Lay down joint. Finish cleaning pits. 3:00 5:30 2.50 _ (continue thawing and sucking fluid from rig containment.) Begin welding and repairs on low pressure lines in mud pits. Load out dry mud products. 5:30 12:00 6.50 Cleaning pipe shed with super sucker(continue thawing and sucking fluid from rig containment) Thaw and suck up fluid from rig containment.Welder repairing gun lines in pits,Install derrick 12:00 18:00 6.00 camera.Suck out fluid from cellar. 18:00 21:30 3.50 Continue thawing and sucking fluid from rig containment. 21:30 0:00 2.50 Lay down drill pipe from derrick.(continue thawing and sucking out fluid from rig containment) REPSOL E&P USA INC. REPfOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT �■ Temp-34/wind 5 mph N NW/Wind chill-50 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 200 cu yds cu yds 2791 cu yds Aprox.cu yds REPORT DATE: 3/21/2012 Thawed mud 280 bbls 2507 bbls 2507 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds Aprox.0 cu yds COSTS: Boiler Water 200 bbls 3169 bbls N/A N/A SUPV ON LOC: M.Grubb/B.Rasch Fuel used on mobile equip 4410 gal./Rig fuel used 1332 gal./Fuel on hand 6251 gal. STATUS CURRENT @ 05:00HRS: Cleaning in substructure,disconnecting dresser sleeves in pump room,prep to remove pipe shed. 24 HR SUMMARY: Finish laying down drillpipe,nipple down diverter stack.Continue thawing and sucking out rig's containment, Making repairs to piping in pits. 24 HR FORECAST: Cleaning and rigging down Nabors rig 105,move rig pieces to staging pad and to Q1 pad OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 1:30 1.50 Continue laying down 5"drill pipe from derrick. Rig down elevators and bails,clear rig floor.Clean drip pans.Nipple down 16"diverter knife 1:30 6:00 4.50 valve.Clear ice outside cellar. Nipple down flow nipple,annular and diverter tee.Remove choke hoses from cellar.Rig down 6:00 12:00 6.00 stand pipe line and hoses.Steam modules around exterior of rig.Clean up tools in cellar 12:00 14:00 2.00 Clean up tools in cellar after nipple down,Rig down cmt hose and kelly hose,Cleaning out rigs containment. Rig down service loop in derrick prep derrick for rig move.Continue cleaning in cellar and rig 14:00 18:00 4.00 containment. Suck out water from conductor,Start breaking down high pressure mud line in pump room. 18:00 0:00 6.00 Continue cleaning rig and rigs containment. Co.Rep and Toolpusher make site inspection on Q1 pad for rig set up. REPSOL E&P USA INC. REPFOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT m■ Temp-36/wind 8 mph E NE/Wind chill-58 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 294 cu yds cu yds 3085 cu yds Aprox.cu yds REPORT DATE: 3/22/2012 Thawed mud 58 bbls 2562 bbls 2562 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds Aprox.0 cu yds COSTS: Boiler Water 65 bbls 3234 bbls N/A N/A SUPV ON LOC: M.Grubb/B.Rasch Fuel used on mobile equip 3261 gal./Rig fuel used 1036 gal./Fuel on hand 5215 gal. STATUS CURRENT @ 05:00HRS: Rigging down.Crane work on windwalls. 24 HR SUMMARY: Cleaning and rigging down Nabors rig 105,move rig pieces to 01 pad 24 HR FORECAST: Cleaning and rigging down Nabors rig 105,move rig pieces to 01 pad and staging pad,Crane work with CH2. Cleaning matting boards. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION PJSM, Blow down mud suction lines in pump room and pits.Thaw hydraulic lines for pipe skate 0:00 6:00 6.00 and disconnect lines to cattle shoot.Prep to split pipe sheds.Thaw mud inside rig on sub.Start disconnect electrical inter connects between modules.Clean in sub structure.Disconnect dresser sleeves in pump room. Rig down mud lines in pits and pump room.Rig down service loop to top drive.Continue clean 6:00 12:00 6.00 rig and rigs containment. Fill in diverter tank hole.Rig down inside service loop.Rig down hydraulics to Iron rough neck. 12:00 20:00 8.00 Unplug and spool cable to unused gen sets.Hang out side service loop with tugger. Remove overshot and landing ring from conductor pipe. Break down mud lines prep pits to 20:00 21:30 1.50 move. 21:30 0:00 2.50 Pull sections of pipe shed, remove turnbuckles from wind walls. @ 22:00 hrs.2 Peak trucks and 2 lowboy trailers arrive and start transporting pipe shed sections to Ql pad,loads inspected by ACS rep prier to leaving Q2 pad for clean of debris. AFC blade snow and add water to level 0-1 pad.Chip survey to check level. REPSOL E&P USA INC. REFfOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT ma= Temp-22/wind 17 mph E NE/Wind chill-49 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 176 cu yds cu yds 3399 cu yds Aprox.cu yds REPORT DATE: 3/23/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 65 bbls 3299 bbls N/A N/A SUPV ON LOC: M.Grubb/B.Rasch/S.McGeehan/Fuel used on mobile equip 5465 gal/Rig fuel used 1126 gal/Fuel on hand 5289 gal STATUS CURRENT @ 05:OOHRS: Still working to get pins out to remove crane boom section,hot air heater and rust penetrate.Will have CH2 mechanic and supervisor out this am to try. Rig crew prp rig to break apart.Organizing loads. Cleaning and rigging down Nabors rig 105,move rig pieces to 01 pad and staging pad,Crane work with CH2. 24 HR SUMMARY: Cleaning matting boards and pad.Prep pits for moving.CH2 attempting to drive out pins to remove boom section. 24 HR FORECAST: Rig down and move rig 105E OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION 0:00 3:00 3.00 Remove ice from pipe shed module.Load out some rig mats.Rig down cement hose to rig floor. PJSM,spot crane.Remove turnbuckles for windwalls,fold down drillers side,off drillers side 3:00 6:00 3.00 pull out pipe shed(w/skate)move and clean matting boards,clean pad. Move crane,and remove back wind wall,blow down steam and electric lines in choke house, 6:00 14:30 8.50 clean out ice around choke house,use crane to remove outside top drive service loop. 14:30 16:30 2.00 Pull choke house with crane,and lay over with assist from bed truck.Prep pits for moving. Attempt positioning crane to remove front wind wall and remove top drive. Boom to long, 16:30 18:00 1.50 move crane to satellite camp pad to remove section crane boom. 18:00 0:00 6.00 CH2 lay down crane,attempting to remove pins to remove boom section.(rig crew's continue prep pits,clean up on pad and load trucks blow down and disconnect steam lines in breezeway to choke house,disconect power choke control lines,secure in sub.Pick up hoses in cellar and second level of sub.) Note correction on ice and mud total manifested+138 cubic yards added after review of manifests. Loads inspected by ACS rep prior to leaving Q2 pad for clean of debris. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT ii im Temp-21/wind 10 mph NE/Wind chill-42 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 240 cu yds cu yds 3639 cu yds Aprox.cu yds REPORT DATE: 3/24/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 46 bbls 3345 bbls N/A N/A SUPV ON LOC: S.McGeehan B.Rasch Fuel used on mobile equip 4321 gal/Rig fuel used 999 gal/Fuel on hand 4290 gal. STATUS CURRENT @ 05:00HRS: Laid down top drive,bridling up to start laying down derrick sections. CH2 crane attempting to remove boom section.Cleaning and rigging down Nabors rig 105, move rig pieces to 01 24 HR SUMMARY: pad.Cleaning matting boards and pad. Prep pits for moving.Spot and crane work with Peak crane 2 picks, remove crane boom section. 24 HR FORECAST: Rig down and move rig 105E OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DU(Rh ATI OPERATION DESCRIPTION CH2 crane working to remove pins to remove section crane boom.Rig crews remove pins 0:00 12:00 12.00 connecting pits,remove turnbuckles on subase,disconnect electrical on unneeded equip, cover open mud lines,clean and organize rig and yard,organize for loading trucks. 12:00 17:30 5.50 CH2 crane working to remove crane boom section,unable to remove pins.Rig crew clean sand from stabilizer pockets and stairs,secure equipment in modules,load out trucks(peak crane arrives at 16:30,inspect work site,PJSM) Remove back wind wall remove folding pins and lay down.Remove kelly hose from floor.Crane 17:30 0:00 6.50 moves to satellite camp pad,shorten boom. Rig crew fold up wind wall,disconnect heater duct Load trucks,clean up pad. Loads inspected by ACS rep prior to leaving Q2 pad for clean of debris. REPSOL E&P USA INC. REPFOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-25/wind 6 mph N NE/Wind chill-41 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 560 cu yds cu yds 4199 cu yds Aprox.cu yds REPORT DATE: 3/25/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 66 bbls 3411 bbls N/A N/A SUPV ON LOC: S.McGeehan B.Rasch Fuel used on mobile equip 5097 gal/Rig fuel used 925 gal/Fuel on hand 3365 gal. STATUS CURRENT @ 05:00HRS: setting crown section in rack,prep to remove A-leg section. 24 HR SUMMARY: Rig down and move rig 105E Rigging down derrick. 24 HR FORECAST: Rig down and move NAD rig 105E OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DU(h RATION OPERATION DESCRIPTION 0:00 3:30 3.50 Remove topdrive and lower torque rail,set on trailer. 3:30 6:00 2.50 Remove lower section of derrick set on trailer. Attempt to remove derrick board, unable due to close proximity of crane.(need to add section 6:00 8:30 2.50 to crane boom.) Move crane to satellite camp pad,start to add section to crane.Rig and lay down stabbing 8:30 9:30 1.00 board. Bridle down,raise blocks above second section derrick and snub with tuggers,coil electric lines 9:30 12:00 2.50 at base of A-legs Spot crane,remove derrick board,rig up bridle lines,scope down and set on trailers,second 12:00 0:00 12.00 and third section's derrick.Hang blocks,secure drilling line and remove line from dead man anchor. Lift drilling line spool with crane and secure spool with dogs. Hang bridle lines in derrick.Start spooling drilling line off drawworks on to drilling line spool. Load out trucks send to 01 pad,and prep equipment and supplies for loading. Loads inspected by ACS rep prior to leaving Q2 pad for clean of debris. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-36/Wind 0 mph N /Wind chill-36 Daily manifest Total total Manifested currently on location WELL NAME: Qugruk#2 Ice&Mud 670 cu yds cu yds 4869 cu yds Aprox.cu yds REPORT DATE: 3/26/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls N/A MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 29 bbls 3440 bbls N/A N/A SUPV ON LOC: S.McGeehan B.Rasch Fuel used on mobile equip 4500 gal/Rig fuel used 296 gal/Fuel on hand 3069 gal. STATUS CURRENT @ 05:00HRS: Lifting out modules cleaning bottoms loading and sending to Q1 pad just freed up breese way behind pump room 24 HR SUMMARY: Rig down and move NAD rig 105E to 01 pad. 24 HR FORECAST: Rig down and move NAD rig 105E,clean matting boards and move to Q1 pad,lay out liner and mats. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DURATION OPERATION DESCRIPTION (hrs) 0:00 3:30 3.50 Spool line off drawworks onto drilling line spool.Remove line and clamp from drum. Lift off crown section,set in rack,lay down A-leg section and load on trailer.(Shut in boiler 3:30 7:00 3.50 0330hrs,blow down steam and water lines) 7:00 12:00 5.00 Remove tool room doghouse,start pulling electric lines,separate and load pit modules,set down drillers dog house,set down crown and drilling line spool rack. 12:00 18:00 6.00 Continue pulling electrical lines,pick back stairs and air compressor building.Chip ice away from loading hitches,fold up and secure upper sub landings,pull hand rails fold up landings at top water tank and pump room,move water tank,and change room,rig down portable generator, move pit,shaker,hopper and parts house modules,remove BOP trolley. Drain boilers,rig down steam lines pull remaining electrical lines.Remove cellar doors. Remove 18:00 0:00 6.00 and secure rain caps from boiler,generator's and pump room modules.Using crane and trucks move VFD and SCR house. Load out trucks send to 01 pad,and prep equipment and supplies for loading. Loads inspected by ACS rep prior to leaving Q2 pad for clean of debris. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT mewl Temp-35/Wind 6 mph N NE /Wind chill-53 Daily manifest Total Total Manifested WELL NAME: Qugruk#2 Ice&Mud 752 cu yds cu yds 5621 cu yds REPORT DATE: 3/27/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 0 bbls 3440 bbls SUPV ON LOC: S.McGeehan/B.Rasch Fuel used on mobile equip 4296 gal/Rig fuel used 0 gal/Fuel on hand 3069 gal. STATUS CURRENT @ 05:00HRS: Picking up matting boards and pit liner Cleaning Q2 pad. Rig down and move NAD rig 105E to 01 pad. Move Taylor satellite camp to 01 pad, pick up and clean rig mats. 24 HR SUMMARY: Clean up pad. 24 HR FORECAST: Move and demobe NAD rig 105,Start surface abandonment of conductor and cellar on Q2 pad. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Using crane and trucks load out boiler houses,oil house/fuel day tank,generators and breeze 0:00 6:00 6.00 ways.Cleaning module bottoms, loading on trucks and moving modules to 01 pad 6:00 9:00 3.00 Remove charge pump module, remove final mud pit module, install shipping braces on subase 9:00 12:00 3.00 Using crane and trucks load subase on trailer,and pull off cellar. Rig down camp Taylor from satellite camp pad, move to 01 pad and start setting up. Load out 12:00 0:00 12.00 trucks and transport equipment to 01 pad, Picking up rig mats,cleaning and stack up for loading.Break down final rig berm. Pick up wood,trash and pit liner.Cover cellar with wood and pit liner,spot hot air heaters to thaw ice in cellar for surface abandonment of conductor and cellar.Covering shelves in conex's for rig move. Roll up electric cables. At 1800 hrs.Contacted AOGCC rep Matt Herrera discussed up coming surface abandonment for Q2 Loads inspected by ACS rep prior to leaving Q2 pad for clean of debris. REPSOL E&P USA INC. REPloc U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT Temp-33/Wind 0 mph /Wind chill-33 Daily manifest Total Total Manifested WELL NAME: Qugruk#2 Ice&Mud 838 cu yds 6459 cu yds REPORT DATE: 3/28/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 0 bbls 3440 bbls SUPV ON LOC: S.McGeehan/B.Rasch Fuel used on mobile equip 4500 gal/Rig fuel used 0 gal/Fuel on hand 3069 gal. STATUS CURRENT @ 05:00HRS: Rigging down shop. Move and demob NAD rig 105,Start surface abandonment of conductor and cellar on Q2 pad. Picking up matting 24 HR SUMMARY: boards and pit liner Cleaning Q2 pad. Loading out rig and tools. Final cut on conductor,free cellar box, 24 HR FORECAST: Demob Nabors rig 105E, Continue with surface abandonment on conductor. Ready shop and Wrangle camp for move. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Pick up matting boards,clean and stack for transport. Pick up remainder rig berm, picking up pit 0:00 12:00 12.00 liner and cleaning pad.Secure items in modules for transport to Dead Horse.Vac water from cellar, unbolt cellar box from conductor,GBR welder making cut on conductor under 4" outlets. Clean fork pockets on Tioga heater,secure conductor with loader, make final cut on conductor 12:00 0:00 12.00 (4' below ground level) remove cut off conductor with 4"outlets.Attach slings to cellar box, pick up approx 2',vac out water around cellar,set back down, Banding equipment and supplies to pallets,Cut stripping,load out drill pipe and rig mats.Remove XO spool 5m X 10M from staged well head, prep wellhead equipment conex for shipping. Prep parts house for moving. GCI out moving communications equipment from Wrangle camp to satellite camp Downey Phone service out. Using wireless system for E-mail At 1800 hrs. 3-27-12 Contacted AOGCC rep Matt Herrera discussed up coming surface abandonment for Q2 Loads inspected by ACS rep prior to leaving Q2 pad for clean of debris. REPSOL E&P USA INC. RFPIOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT mom Temp-35/Wind 6 mph SW /Wind chill-53 IDaily manifest Total Total Manifested WELL NAME: Qugruk#2 Ice&Mud 910 cu yds 7369 cu yds REPORT DATE: 3/29/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 0 bbls 3440 bbls SUPV ON LOC: S.McGeehan/B.Rasch Fuel used on mobile equip 569 gal/Rig fuel used 0 gal/Fuel on hand 3069 gal. STATUS CURRENT @ 05:00HRS: Loading trucks Demob Nabors rig 105E.Surface abandonment on conductor,celler box and fill hole.Ready shop and move out. 24 HR SUMMARY: Ready Wrangle camp for move.Loading trucks and cleaning pad. 24 HR FORECAST: Load up trucks with rig supplies and equipment clean Q-2 pad.Ready Wrangle camp for move. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DU;h RATION OPERATION DESCRIPTION Pull parts house,away from shop, pull side buildings away and scope down shop. Load trucks 0:00 11:00 11.00 with matting boards drill pipe and rig palletized equipment.Cleaning pad. 11:00 12:00 1.00 Fill conductor with 14 bbls concrete.Full to top. 12:00 0:00 12.00 Load out shop,and conex's,load out tubular's, matting boards,cleaning pad,clean out cellar box,weld marker plate on conductor pull cellar box, backfill hole with gravel. Barricade off area.Continue loading trucks with rental equipment and rig supplies.Assist rig down ready Wrangle camp for move. 2400hrs Nabors has 4 people on Q-2 site.For loading trucks,cleaning pad and assist rigging down Wrangle camp. 0600hrs contacted John Crisp of ACGCC discussed surface abandonment on Q2.E-mailed photos to him of cement to top of conductor and welded on marker plate at 1820hrs. Loads inspected by ACS rep prior to leaving Q2 pad for clean of debris. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT • Temp-28/Wind 7 mph NNE /Wind chill-47 IDaily manifest Total Total Manifested WELL NAME: Qugruk#2 Ice&Mud 624 cu yds 7993 cu yds REPORT DATE: 3/30/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 0 bbls 3440 bbls SUPV ON LOC: S.McGeehan/M.Grubb Fuel used on mobile equip 1892 gal/Rig fuel used 0 gal/Fuel on hand 3069 gal. STATUS CURRENT @ 05:00HRS: Loading trucks and moving loads from Q-1 to NOC;Cold start and diesel tank,boiler 1&2,Gen sets 1,2&3. 24 HR SUMMARY: Load up trucks with rig supplies and equipment clean Q-2 pad. Ready Wrangle camp for move. 24 HR FORECAST: Finish prep Wrangle camp for move.Continue rig up at NOC. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Prep equipment and rig supplies for loading,clean up on pad, load out trucks. Layout herculite 0:00 12:00 12.00 at NOC.Clean up and set mats. Finish palletizing banding and load out all rig equipment from Q-2 pad. Load out volume tank and upper deck,aux water tank with meeting room upper deck,pits 4-5-6 12:00 0:00 12.00 with upper hopper room,charge pump module, mud pump#2, manifold module,water tank tool house,Air compressor module,breezeway module,centrifuge pump module, upper centrifuge module,shaker tank, upper shaker module,choke house/gas buster module,electric control room,ODS and back windwall and portable welder from 0-1 pad to NOC. Peak hauling rig using 9 trucks. Loads inspected by ACS rep prior to leaving Q2 pad for clean of debris. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT mum Temp-22/Wind 12 mph NNE /Wind chill-39 I Daily manifest Total Total Manifested WELL NAME: Qugruk#2 Ice&Mud 198 cu yds 8191 cu yds REPORT DATE: 3/31/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls MD(ft): 2526' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 0 bbls 3440 bbls SUPV ON LOC: S.McGeehan/M.Grubb Fuel used on mobile equip 2202 gal/Rig fuel used 0 gal/Fuel on hand 3069 gal. STATUS CURRENT @ 05:00HRS: Start cold start generator and rig up temp lighting.Start plug in interconnects and power cords. 24 HR SUMMARY: Continue to move rig from Q-1 to NOC.Load out 13 truck loads.Rig up Peak crane and start stacking rig.Set crown section,dog house,tool house,shaker,and stairs.Set pump room,generators and boilers. 24 HR FORECAST: Continue to move rig to NOC.Set and rig up at NOC for inspection and repairs. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) FROM TO DU(h RATION OPERATION DESCRIPTION • Load out from Q-1 to NOC 4 truck loads:cold start with diesel tank,gen set#1 with hot well. 0:00 12:00 12.00 Gen set#2 with boiler#1,gen set#3 with boiler#2. Install hand rails on cellar mezzanine.Safe up choke house entrance.Spot water tank#2 and manifold house.Rig up Peak crane.Level manifold house.Set pump modules.Set Air compressor room on manifold house with crane. Load out an additional 9 truck loads:Two diesel tanks,front windwalls,kelly hose&choke 12:00 0:00 12.00 house,service loop,annular, stabbing board,2 connex,BOP trolley,misc equip and rig mats. Ship off medic shack,Antigun warm up shack and Canrig unit. Spotted drillers dog house,shaker room double stacked,pump room parts house,dog house stairs and pit stairs.Install handrails and exterior lights around rig. Prep and spot crown section,tool house,A-legs,breezeway,generator and boiler module. Install turnbuckles and floor plates on ODS. 9 Peak trucks moving rig. REPSOL E&P USA INC. REPJOL U. S. BUSINESS UNIT- ONSHORE ALASKA PROJECT 'osi" Temp-12/wind 9 mph NNE/Wind chill-30 J Daily manifest Total total Manifested WELL NAME: Qugruk#2 Ice&Mud 36 cu yds 8227 cu yds REPORT DATE: 4/1/2012 Thawed mud 0 bbls 2562 bbls 2562 bbls MD(ft): 2515' Cuttings 0 cu yds 483 cu yds 483 cu yds COSTS: Boiler Water 0 bbls 3440 bbls N/A SUPV ON LOC: S.McGeehan/ M.Grubb Fuel used on mobile equip 2751 gal./Rig fuel used 0 gal Fuel on hand 3069 gal. STATUS CURRENT @ 05:OOHRS: Finish loading out rig 105. Load out 3 loads of McKinley camp from 0-1. Rigging up at NOC.Spot Choke house. String temporary lights into sub. Plugging interconnect lines to modules.Rig up dresser sleeves to charge pumps. 24 HR SUMMARY: Continue to move rig 105 from 0-1 to NOC and rig up. Loaded out a total of 11 loads. Burm in rig.Set gens and boilers. Running electrical lines, Rig up for steam and water. 24 HR FORECAST: Load out last load of rig equipment.Continue rig up at NOC. OPERATION SUMMARY (12:00 A.M. to 12:00 A.M.) DURATION FROM TO (hrs) OPERATION DESCRIPTION Load out from 0-1 to NOC 3 loads:Pipe shed#1 with misc equipment, Pipe shed#2 with misc 0:00 12:00 12.00 equipment,Pipe shed#3 with misc equipment. Berm rig,set#2&boiler#1,set gen set#1 and boiler hot well,set VFD&SCR room.Attach grounds,flip rain covers,lower ladders, rig up flow line,lower landing to pump room.Rig up small landings&hand rails, rig up heaters to sub.Hook up steam and mud lines in pump room. Load out from Q-1 to NOC 7 loads: Pipe shed#4,5,6,20 jts hwdp,old and new diverter line, 12:00 0:00 12.00 long and short bales,5"test joint,two connex's with misc equip.,connex and double gate BOP, two loads of rig mats.Also sent fuel tank from 0-1 to CH2MHILL for cleaning before going back to Tanko. Hooking up mud lines in pump room and pits. Hooking up water and steam lines through out rig. Pre heating boilers with hot air heaters.Clean and organize pump room,parts house and rig floor tool room.Clear snow from landings and general walk around to safe up rig. Hang cellar doors. Run electrical cables for cold start generator.Chinking rig. 2 Nabors hands staying Q-1 loading out trucks. Loaded out 11 loads of rig equipment. 9 Peak trucks moving rig. , '4111111 IIIS\14,. ' //- ,., . ,C .,. '44,P /\\N.., . , , 4 if iF +``�- C� { % • j Y�M.•r4r y r 4. ,^�,aVl • b f,k...i„ rte! .;d \. 1 C-- :'' . 1''1 Fi . Ira.ti•., ir. * .. '14167:41,,.,1''''''....". , 4' — ( ' .t yam, ,...;.:, . r\- 0 - . i." . ''' r.�,. ° .,... S c'' ., 1 ,....) ....... -:, .... . ./.../.,., ,, \ ' ") 14111 .. No ' (:::::/p ''''. , '.. , , & . ,. f , ' N. ,,, . ,.‘ ' 11; F ,1/44,C s..1,,' „. .01,..... . • im` s tea+ / N ,, t "w..,y .,.c ,t,,,o .i.1,..c. , AA ... , ,04,1,.• ....1,4,..,....,.. , 41., 1 7'. . • ; b i ; 1 .;'I ? i • 1 ,. . , . ' .,• ,, 1 , , d . 1 • , , I ' 0 I . ' srsstsoss,,,,,-,s. s s s.stissis), . s s . s,. ..,,..,sss•.sssl.sio,.,,.ts„s,ss s s .. sse,ss sossssskks ,s s • , '',''sss.tss,,I, s,.: ., . ,..,,, ,,,, .1. , 1.;,.1 • 1 t s's,i"?,' ,,'ss • k'`.•., ' '' i 1 It ' . ......^• , • t i "' .'1 • . 1 ' 21(586 2(HST 21 It?)8 zt WeA TRANSMITTAL LETTER 21490 To: AOGCC(Alaska Oil and Gas Conservation Commission) April 25,2012 Makana Bender, Natural Resource Technician 333 West 7th Avenue,Suite 100 Anchorage,Alaska 99501 RE: Repsol a$4� Lorenzo Villalobos/Juan Aluja jalujav@repsol.com,fax 287-297-1 2001 Timberloch Place,Suite 3000 The Woodlands,TX,77380 In the data listed below, Repsol Alaska hereby is submitting the technical information of the well Qugruk-2 following the instructions of the regulation 20 AAC 25071 of the Alaska Oil and Gas Conservation Commission (AOGCC),complying with the period after 30 days of the abandonment of the well: List of formations and other geological markers 1 hardcopy r Summary list of logs run and depth interval covered 1 hardcopy Lithology Log — 2)c.(51. 1 hardcopy Samples manifest 1 hardcopy ✓ Final logging while drilling logs(MD and TVD)21486, 1 color logs(5 in).- 1 color logs(2 in) Final cased wireline logging logs(MD and TVD)?ILI% c21481 1 color logs(5 in) ' 1 color logs(2 inr Logging Data: 214849 LWD GR-Res Digital Log Data and Plot Files 1 CD Rom ✓ �Iyggt21yggTwo Cased Hole Wireline Logging 2 CD Rom v✓ 21451 Mud logging Digital Log Data and Plot Files 1 CD Rom 1480 Miscellaneous(Digital hardcopy of the documents provided) 1 CD Rom — Please acknowledge receipt by signing and returning a copy of the transmittal letter(by postal mail,email or fax) to the attention of Repsol, Lorenzo Villalobos/Juan Aluja, 2001 Timberloch Place,Suite 3000,The Woodlands,TX, 77380. /24Date: 7 / 1- Signed: L `' 1,ArJ\ CC: Roberta Camuffo Chris Hyek Kurt Albaugh l( — ( V7L 0/ • � N. . � . 4,. <14b,� + 0.011% I _ / k 2 / C i \ J § 2 2 % S & @C CO Tr o - cr 0 u_ , \ 7 . 7 o / - _ oq I (D ® 4 \ o -NC ® z I Y = -J a g q C _ o ;Ti- u w @ CC 0 2 $ 0 « _ \ R ¥ % _ Z oj O o 0 2 O $ $ � § \ CO 2 Z o n J ,- " Ci Ci 0 \ m O > D » / k 6 3 z w z cc / b \ % I \ / / / 7 \ / \ < / 0 0 0 4 ƒ / $ \ E $ / \ } 0 O 4 ƒ O ƒ ( m D S \ \ / .✓ a; ,:i;,49.,..4 Hnh a) MO O O !6 U C c 01 M OD -0 O O c c la = in O O = E to b0 tr, In v, , C C b0 ba a c c .-' .� _ 0 al = = a) U C U U 0 0 ++ N 0 -0 -0 U U ,C to y+ N 0) .,C14) a) 4- t U `a 3 3 0 23 � " - 4_ 4- 4- 4- rn a) t O 0 0 0 = 0 OS CO a) a) v a a a ,n a) U U Q 0 0 0 aJ N l0 `D f° EEEE 0.. E a) �••� $ (6 f0 !0 r6 E Q ate) N d O O O `� n M n M Ln Cr)CTS E a) Ln a) O M M 00 .-i M a--1 m i O) ra N !r) O O +-, a-, N ++ ++ 4- Y 13 +L+ O 4L+ ytD 0 O CO d' > 1:10 MI 13.0 0.0 ON 0 aO a o O Ln N M i bA bA b0 b0 OG 00 ,-I ,-N N V 0 � N 1 an m m m N co ,--I r0 r0 bA N _ 2 2 J to 'V °o m ko o O J ba CO c C L L a+ O LL d CC d N OU OU a)TS m > a) v +� Y.0 N 0 ,moi, 00b0N E • .••• 4-, OOTr (n I- (0 •++ •+� c al ) N V N N N J aJ a) V •� 0 4-4O N N- C ,:i a O 2 2 _ _ t 0 +, 0 +, 0 ,..o N U H U 0 0 Ma$ 1 4, O a-+ 0 Y `� 0 N C c C = 't 't 'a 'a a o Ln o Ln o 0 0 C�v 3 3 .- a) a) rb ra a, 0 O o +' rn cc ccoC O a a oc cc G .1 0 C7 Z_ t7 L.7 Q Z 0 J Lu J z O w W cc I 3 z W J C7 O w Z N = N O N N 0 .N J BVI 0 - H w - 0 a) Os'j I .1-i U I - 2 _ `-° CANRIG Samples obtained from Repsol's Qugruk-2 well (API No. 50-703-20649-00-00) in the North Slope Borough of the state of Alaska SAMPLE MANIFEST 4/13/2012 From: Canrig Drilling Technologies 301 E. 92nd Ave. Anchorage AK 99515 To: Alaska Oil and Gas Conservation Commission Attn: Howard Okland (office: 907-793-1235) 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501 Shipment consists of 2 Boxes total: Dry Cuttings Samples 100' — 1780' Dry Cuttings Samples 1780' —2440' 17 Dried Cuttings Samples on 90 ft intervals, 100' — 1450' 33 Dried Cuttings Samples on 30 ft intervals, 1450' —2440' This has been shipped as 1 bundle (2 boxes) of samples Received by Expediter Date 1VLLNaNOc QUGRUK-2 DATA TRANSMITTAL INDEX The technical data listed below for the work performed in the Qugruk-2 well is being submitted herewith. Please find enclosed the following information: List of formations and other geological markers 1 hardcopy Summary list of logs run and depth interval covered 1 hardcopy Lithology Log 1 hardcopy Samples manifest 1 hardcopy Final logging while drilling logs (MD and TVD) 1 color logs(5 in) 1 color logs(2 in) Final cased wireline logging logs (MD and TVD) 1 color logs (5 in) 1 color logs (2 in) Logging Data: - LWD GR-Res Digital Log Data and Plot Files 1 CD Rom - Two Cased Hole Wireline Logging 2 CD Rom Mud logging Digital Log Data and Plot Files 1 CD Rom Miscellaneous(Digital hardcopy of the documents provided) 1 CD Rom Please address any problems or concerns to the attention of: Repsol Ricard Fernandez Torrent 2001 Timberloch Place,Suite 3000 The Woodlands,TX, 77380 Phone: 281-297-1058 Email: rfernandezt@repsol.com Repsol Alejandro Martin Vicente 2001 Timberloch Place,Suite 3000 The Woodlands,TX, 77380 Phone: 832-442-1478 Email: alejandro.martin@repsol.com FERNANDEZ TORRENT, Rk ZDO From: Grunwald, Daniel [Daniel.Grunwald@canrig.com] Sent: Tuesday, April 24, 2012 5:33 PM To: FERNANDEZ TORRENT, RICARDO Subject: RE: Set#3 Attachments: Qugruk-2_Sample_Manifest_Repsol_Set_3.doc Good evening, Ricard. My apologies as the manifest for sample set #3 was not with the others. Although I was unable to locate it, I've contacted the mudlogger who shipped the samples, and he tells me that set #3 was sent to the State of Alaska. I also called the state (Howard Okland on the attached manifest) and confirmed that they received the samples. I've attached a replacement manifest that should be identical to the original. Daniel Grunwald Mudlogger Direct 907.561.2465 I Fax 907.561.2474 Daniel.Grunwaldacanriq.com www.canrict.com From: FERNANDEZ TORRENT,_.... ...__. ._. _.. . ,.__.. ....... . ...... a�_ _.r. �.._._ .. ._. . . ..w _. ...._. ��. -.�._.., ..._. ._....,.__._u._..�,.,.�...� RICARDO [rfernandezt@repsol.com] Sent: Tuesday, April 24, 2012 1:00 PM To: Grunwald, Daniel Cc: Silva, Robert; Carson, James; MARTIN VICENTE, ALEJANDRO Subject: Set #3 Daniel, cannot see a copy of the manifest for the set#3 of Qugruk-2. Please, can you send us it? Thanks. Best Regards, Ricard Fernandez AVISO LEGAL: Esta informaciOn es privada y confidencial y este dirigida unicamente a su destinatario i usted no e el destinatario original de este mensaje y por este medio pudo acceder a dicha informaci6n,por favor,elimine el mensaje.La distribuc.ncopia de este •ensaje este estrictamente prohibida. Esta comunicaci6n es solo para propOsitos de informaci6n y no deberia ser considera•-corr�una declaraci6 •ficial de Repsol YPF. La transmisi6n del correo electrOnico no garantiza que sea seguro o este libre de error. Por consiguient no m amos que esta i •rmacion sea completa o precisa.Toda informaciOn este sujeta a alterarse sin previo aviso. This information is private and confidential and intended for the recipient: ly.If you are intended recipien •f this message you are hereby notified that any review,dissemination,distribution or copying of this message is ictly prohibited. i mmunication is f. information purposes only and should not be regarded as an official statement from Repsol YPF.Email transmissi••cannot be gua t- -to be secure ore or-free.Therefore,we do not represent that this information is complete or accurate and it should not be reli_• upon as such. ' i.. • ation is subject •change without notice. CANRIG EMAIL NOTICE -This transmission may be rictly con` , 'a1. If you a - not the intended recipient of this message, you may not disclose, print, cop , or dissemi' -ip4 is informa Son. If you have received this in error, please reply and notify the sender(onl and delete'07-,y,-ssage. Unauthorized interception of this e-mail is a violation of federal criminal law. ' is comm ;--; n does not reflect an intention by the sender or the sender's principal to conduct a transa• ion or mak 'agreement by electronic means. Nothing contained in this message or in any attach -nt shall satisfy the requirements for a writing, and nothing contained herein shall constitute a contract or electronic signature under the Electronic Signatures in Global and National Commerce Act, any version of the Uniform Electronic Transactions Act, or any other statute governing electronic transactions. i Regg, James B (DOA) � 2 II I�7O From: Bill Penrose [bill@solstenxp.com] Sent: Friday, March 30, 2012 10:43 AM To: Schwartz, Guy L (DOA); Regg, James B (DOA) Cc: JONES, ROBERT; ysa, rick (ext) Subject: P&A pictures Q-2 Attachments: P1010024.JPG; P1010025.JPG; P1010029.JPG; P1010030.JPG Guy and Jim, Our drilling supervisor at Qugruk#2,at the request of Slope Inspector John Crisp, asked me to forward these P&A photos to you. They'll also be included in the Sundry Report of the surface P&A once the P&A is complete. Regards, Feet pewwde Vice President/Drilling Manager SOLSTEN,::''p 310 K Street,Suite 700 Anchorage,Alaska 99501 Main 907-279-6900 Direct 907-264-6114 Cell 907-250-3113 1 Qugruk#2 Surface Abandonment PTD 2111670 3/30/2012—3/31-2012 AOGCC waived witness of this surface abandonment. Photos courtesy of Repsol. Q-2 casing cut-off with cement to surface • ..e.'" :.' . ".'''.."1......N. . `/' fes.. '( e - -) % ;,.,.. 'i--, / , Tr. "--� ' Q-2 marker plate �7t /' • installed i' /•1 / i .L,/ yy 7 i • ,/ / • 0. u . /' ate''�. Illk 1.11 :. 6-; fu;:el Q-2 buried and mounded s t' - t REPJOL March 30,2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Repsol Alaska: Qugruk#2 (PTD#211-167) Dear Ms. Foerster, This is a report of Repsol Alaska's well operations on the Qugruk #2 for the period March 23 through March 29, 2012, inclusive. March 23, 2012 0' MW---ppg Vis --- sec Incl ---° Move in crane, begin dismantling rig. Rig crew cleaning rig components during disassembly. ACS inspecting rig components for cleanliness before leaving location. March 24, 2012 0' MW ---ppg Vis --- sec Incl -- Organize rig components and yard for loading trucks. Begin loading out trucks while dismantling subbase and derrick. March 25, 2012 0' MW---ppg Vis --- sec Incl ---' RDMO top drive,torque rail and derrick sections. March 26,2012 0' MW---ppg Vis --- sec Incl ---° Continue dismantling rig and trucking trucking out components. Continue cleaning pad. March 27, 2012 0' MW ---ppg Vis --- sec Incl -- Continue dismantling rig and trucking out components. Continue cleaning pad. March 28, 2012 0' MW---ppg Vis --- sec Incl ---° Finish dismantling rig and trucking out components. Continue cleaning pad. Cover cellar and spot air heaters to prepare for surface abandonment of well. March 29,2012 0' MW---ppg Vis --- sec Incl ---° Continue loading out equipment and cleaning pad. Fill conductor to surface with cement. AOGCC inspector John Crisp waived witness. Photographically document cement, weld on marker plate and photographically document again. Prepare camp for movement off location. If you have any questions or require additional information, please contact me at 264- 6114. Sincerely, For REPSOL ALASKA Peeetode Bill Penrose Vice President/Drilling Manager SolstenXP , Inc. cc: Bob Jones—Repsol Rick Ysa—Repsol 2 f , Ili id LitifriluE SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 Bill Hardham Operations Manager Repsol USA 2001 Timberloch Place, Suite 3000 . I 6j The Woodlands, TX 77380 Re: Exploratory Field, Exploratory Pool, Qugruk #2 Sundry Number: 312-109 Dear Mr. Hardham: 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. 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 reconsideration. A request for reconsideration 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. Sincerely, / ile-t•A/I- _ Cathy . Foerster Chair -L- DATED this „D - DATED of March, 2012. Encl. REPJOL March 22, 2012 Ms. Cathy Foerster, Chair E "' ); , 1- Alaska Oil and Gas Conservation Commission 333 West 7th Ave. Suite 100 MAR :/() Anchorage, Alaska Al aka 99501 Alaska e tlil & oafs Loris. »s`.rivTrr:,r AzThcrcoo RE: Application for Sundry Approval Surface Plug and Abandonment of the Qugruk#2 (PTD # 211-167) Dear Ms. Foerster, Repsol Alaska hereby applies for sundry approval for the surface plugging and abandonment of the Qugruk#2. The well has already been plugged with cement downhole and at the surface, with all plugging having been witnessed and approved by Commission representatives. This Sundry Application covers the remaining surface steps to be taken to complete the abandonment of the well. Enclosed find a completed Form 10-403 and a detailed surface well abandonment procedure. If you have any questions or require additional information, please contact me at 281- 297-1176 or Bill Penrose at 907-264-6114. Sincerely, REPSOL ALASKA Bill Hardham Alaska Operations Manager cc: Rick Ysa- Repsol Bob Jones - Repsol D75 7 c'/(L X4C STATE OF ALASKA �' 1.' ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1.Type of Request: Abandon 0 • Plug for Redrill❑ Perforate New Pool❑ Repair Well❑ Change Approved Program❑ Suspend❑ Plug Perforations❑ Perforate❑ Pull Tubing❑ Time Extension❑ Operations Shutdown❑ Re-enter Susp.Well❑ Stimulate❑ Alter Casing❑ Other: ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Repsol Alaska Development ❑ Exploratory 2 211-167 - 3.Address: Stratigraphic ❑ Service ❑ 6.API Number: 2001 Timberloch P1,Suite 3000,The Woodlands,Texas 77380 50-103-20649-00-00 - 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: Spacing Exception Required? Yes ❑ No E Qugruk#2 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL 391456 Exploratory ��::: F�,` �11. PRESENT WELL CONDITION SUMMARYE• ,le'�Total Depth MD(ft): / Total Depth TVD(ft): , Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): N t n �J k measured):.3,S ZS�3 z-z,222 7fps- ''2- 0' 0' Cmt@ surf,1350',1750',2 d /BW`A 689'-2,515' Casing / Length Size MD TVD lask8 '� �� � Collapse Collapse Structural 4R;;�e'tald Conductor 82' 20" 82' 82' N/A N/A Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): N/A N/A N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): N/A N/A 12.Attachments: Description Summary of Proposal 0 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory 2 Development ❑ Service ❑ 14.Estimated Date for 15.Well Status after proposed work: 3/28/2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned El Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Penrose 907-264-6114 Printed Name Bill Hardham Title Alaska Operations Manager Signature --� uM Phone 281-297-1167 Date 3122_1 t COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: .,--) Z')09 ii s-..-4,...„,...,1_z 0f L Plug Integrity (' BOP Test ❑ Mechanical Integrity Test 0 LocationioClearance Other: tV V-1-; T 1 i-c s*9 c-r_-Atr 5 ...&.,..--(..c.:- a-e 1V Subsequent Form Required: /0 •-'1() I APPROVED BY ., p THE COMMISSION Date: 3 — .O —/ r- 3 2.z- - RBD2. MS APR 0 2 201 Approved by: a/4 /,; COMMISSIONER ORIGINAL "le. �t�n ,11/Form 10-403 Revised 1/2010 ,/j in Duplicate 17/ Qugruk #2 Surface P&A Procedure 1. After pumping surface cement plug(s), rig down and move out drilling rig and related drilling equipment. 2. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding ground level. 3. Using a cutting torch, cut 20" casing off to leave well severed at least 3' below original ground level. 4. Remove cellar, wellhead and severed casing. 5. Top off well with cement if necessary. AOGCC and Operator representatives to witness. 6. Photographically document the condition of the top of the well before welding on the marker plate. 7. Weld a '/"thick, 20" diameter steel marker plate over the top of the cut-off well casings. AOGCC and Operator representatives to witness. Marker plate to have the following • information bead-welded onto it: Repsol Alaska Qugruk#2 API#50-103-20649-70 PTD #211-167 �/ 8. Photographically document the welded-on marker plate. 9. Back-fill excavation with original soil. Top excavation with clean gravel or topsoil brought out from a mine source at Kuparuk or Prudhoe Bay Field, mounding it over the well to a height of at least 5' to compensate for later settling. 10. Clean location, obtain site clearance approval from AOGCC representative on location and move out all personnel, equipment and materials. Photographically document the final location condition and send all reports and photographs to Anchorage office for inclusion in final report to the AOGCC. MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: March 18, 2012 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: Qugruk 2 Well Control Petroleum Inspector Operations report yr-6 Z-1 l l(,70 Note, This is the final well control operations report after handover of job from Chuck Scheve. Sunday, March 18, 2012; This is the final cement plug pumped which was circulated from the severed drillpipe which had been withdrawn one joint to approximately 660' RKB. After surface rigup and prep all lines were pressure tested to 3800 psi. Two leaks were found, repaired and retested. SOS started mixing 10.7 Arctic Set Lite and began pumping approximately 02:45. Returns were near immediate and consisted of clabbered mud in the 10.2 range. At approximately 270 bbl's of cement away the diesel used to freeze protect and pressure test with appeared at surface and cement indications showed soon after. At 470 bbl's circulated the returns seemed to be cleaned up nicely and weighed 10.7 which was what had been pumped throughout the job (+/- .1 ppg). They had a large excess of cement on hand and it was decided to pump another 50 bbl's of cement. Again the return density remained constant at 10.7 ppg. A 12.5 ppg AS1 dry job pill was mixed and pumped. After rigging down the surface equipment the remainder of the 5" drillpipe that had been severed as reported before was POOH and stood back. The cement at surface stood at a• •roximatel 10'-15' below the 4" cmt outlets which should make final abandonment convenient. Total Time 18 hours. Attachments: 03182012 Repsol Q2 Surface Cement Job 660 ft Report.pdf .� Confidential 2012-0318_Surface Plug_Qugruk-2_1g 1 of 1 • Cc Schlumberger Cementing Job Report CemCAT v1.4 Well Qugruk 2 Client Repsol Field Prudhoe Bay SIR No. BC8Z-00084 Engineer Peter Cahill Job Type Squeeze ASL Country United States Job Date 03-17-2012 Time Treatment Pressure; Rate - ----Density { Messages 16:13:56 1 P3SM blow air through lines i peak air compressor line clogged pump line dear 16:59:00 Start prime up ? — little red shipping 50 psi to sib I - ------ , Reset Total,Vola 5.69 bbl Reset Total,Vol=0.00 bbl �� all primed up line down well ___T i 17:44:00 start pumping 2 bbl diesel ' down dose valve on floor dear for low PT 1,000 psi low PT 1200 psi all dear for 3800 psi PT _ i 18:29:00; PT Pass DSM Mike Grubb Reset Total,Vol=2.36 bbl - line up down well to pump 2 hills diesel Reset Total,Vol=0.18 bbl Reset Total,Vol=2.35 bbl 19:14:00 Swap to 10 ppg Mud Start Mud 5:30 PM Mud to diverter diesel to tank No gas out diverter loosing prime 19:59:00 Reset Total,Vol=269.99 bbl 261 bbls away 20:14:48 i- - --_ - .—_ _ _ __ . -. _ swap to diesel disel down on pump • • wash up to vac 00:11:12 - - • Reset Total,Vol.1.78 bbl _ Well is Static wash up pump • • rig down scaffulding on floor Blow down pump line • { CMT PJSM 00:56:00 i PJSM for cement done MI to take cement sameples through out j ` prime water line .. line up down drill pipe to 01:41:00 Valve DUMfixed bbls diesel and PT line down drill pipe - down on pump -. dose on floor for low PT all dear for PT 02:26:00 —1 t high PT 3,800 psi bleed pressure line up to dill pipe to pump 2bbls diesel ---- Reset Total,Vol=2.36 bbl Reset Total,Vol=0.09 bbl chkk replaced on floor 03:11:00' dosed on floor 1000 high PT 3800 psi i. PT Pass DSM bleed line to tank wash up truck Reset Total,Vol=2.44 bbl 03:56:00 wash diesel to vac start batching ASL Reset Total,Vol=2.82 bbl I cement to weight 10.7 ppg MB reads 10.: line down drill pipe 5 bbls h20 ahead of cement 04:41:00 Reset Total,Vol=5.06 bbl down on pump Start ASL Returns to diverter basing cement volumes off mix h20 05:26:00 40 bbls mix h20 away 4 bprn 50 bels mix h20 away=80 bbls 4 bpm • good returns i il0 bbls mix h20=175 bbls ASL 05:59:08 1 rig repprocating pipe swap silo x[164 bbls mix h20 diesel to tank ..-- - ------- __- __ ----- —y hh•mm:sc 0.00 aoo 1„0 3b, „m .m, 0.00 2.2 2.4 a ,J aA 5.0 4.0 130 ,)A uA ,SA nwt�muxs:n --- PSI B/M LB/G I 03/18/2012 06:33:26 Schlumberger Cementing Service Report J Customer Jab Number Repsol BC8Z-00084 Well Location(legal) Schlumberger Location !Job Start Qugruk 2 2 Qugruk 2 Jeff Long i Mar/17/2012 Field Formation Mame/Type Deviation lit Size Well ND Well TVD Prudhoe Bay Clean-Sandstone 1 deg 16.0 1n 2700.0 R 2695.0 ft `County Beediey Point State/Province Alaska BHP BHST BHCT Pore Press Gradient Iwell Master Qugruk API/t1W1 qs ---- _--- {' 1429 psi 74 degF 80 degF lb/gal {Rig Name Drilled For I Service Via Casing/Liner Nabors 105 Oil Land plinth,R 1 Size,M Wright,lb/ft Enda Thread Offshore gene Well Class Well Typo 80.0 20.0 106.5 N80 New Exploration 0.0 0.0 0.0 Drilling Fluid Type T Max.Density Plastic Viscosity Tubing/brill Pipe ._. -..._.. Polymer 10.20 lb/gal cP i I T/D Depth,R Slsa,in '..Weight,lb/R I� Grads Thread , Service Line Job Type D 749.0 - 5.0 - - -19.5 i 5135 Cementing Squeeze ASL �.... -.0,0 0.0 0.0 ------ Max.Allowed TUb.Press Max.Allowed Ann.Press (WH Connection Perforations/Open Hole __-_-_ 3800 p51 l • T�rt ! Bottom,R slid/R-_-Ma ofShot Toth Interval • Service Instructions 749.0 ft I ft ft Instructions 0.0 R ft Diameter 0.0 R 1 - R - in Treat Down !Displacement Packer Type Packer Depth Drill Pipe ; bbl R Tubing Vol. Casing Vol. Annular Vol. Openhole Vol. 15.0 bbl bb( bbl bbl I Casing/Tubing SecuredI 1 Hole Vol.Circulated prior to Cement IJ Casing Toils Squeeze Job Lift Pressure 50 psi Shoe Type Squeeze Lyne Pipe Rotated L J I Pip.Reciprocated n Shoe Depth ft Tow Type • tio.Centralizers I Top Plugs bottom Plugs Stage Tool Type Tool Depth ft Cement Head Type Stage Tool Depth ft Tau Pipe sie. in Job Scheduled For Arrived on Location Leave Location Collar Type Tag Pipe Depth ft Mar/17/2012 Mar/17/2012 L Mar/17/2012 Collar Depth ft Sgz.Total Vol. bbl Date Time T CNT_TREAT PRES RATE Density ....� Message 24-hr PSI 8/N 1.8/I dock • 03/17/2012 11:15:04 -51 0.00 0.0 !Started Acquisition 03/17/2012 15:16:32 5 0.00 0.0 diesel flowing from diverter line ----- --1---- -- 03/17/2012 15:16:42 5 0.00 0.0 {communication to surface established 03/17/2012 15:23:55 I 5 0.00 0.0 !to establish circulation with 12 ppg mud ,i 1 03/17/2012 16:18:52 5 -.-.-_ .0.00 0.0 PJSM - - 03/17/2012 16:32:07 0 0.00 0.0 blow air through Ines i 03/17/2012 16:34:10 0 0.0D 0.0 peak air compressor line dogged 03/17/2012 16:43:34 5 0.00 0.0 pump line dear 03/17/2012 17:00:09 0 0.00 F 0.0 Start prime up 03/17/2012 17:01:32 0 0.00 -3.1 little red shipping 50 psi to sib 03/17/2012 17:09:00 192 0.00 6.7 Reset Total,Vol=5.69 bbl 03/17/2012 17:09:03 192 0.00 6.7 l Reset Total,Vol=0.00 bbl 03/17/2012 17:09:11 188 0.00 6.7 all primed up ' 03/17/2012 17:09:19 183 0.00 6.7 line down well 03/17/2012 17:10:07 1 169 0.00 6.7 start pumping 2 bbl diesel 03/17/2012 ( 17:12:30 133 0.00 : 6.7 down 03/17/2012 17:12:39 137 0.00 6.7 dose valve on floor 03/17/2012 17:14:34 78 0.00 1 6.7 dear for low PT 1,000 psi 03/17/2012 17:14:53 1195 0.00 6.7 low PT 1200 psi 03/17/2012 17:16:55 714 0.00 6.7 all dear for 3800 psi PT 03/17/2012 ] .17:19:08 2490 0.00 l 6.7 PT Pass DSM Mike Grubb Page 1 of 3 9 • Weil I-.... _.-.- field Job Start Customer -. -1 lob Number -_- Qugruk 2 2 Prudhoe Bay i Mar/17/2012 Repsol BC8Z-00084 Date Time ' CMT_TREATJRES RATE Density 1 Message 24-hr PSI R/M lE/R deck , 03/17/2012 17:21:21 , 41 0.04 6.7 line up clown well 03/17/2012 17:21:59 1 92 0.00 6.7 to pump 2 bbis diesel 03/17/2012 17:24:22 92 0.06 6.7 Reset Total,Vol=0.18 bbl 03/17/2012 17:26:55 82 0.16 6.7 .Reset Total,Vol=2.35 bbl ----- - -� 03/17/2012 17:27:03 82 0.00 6.7 I Swap to 10 ppg Mud 03/17/2012 17:30:20 78 0.80 6.7 Start Mud 5:30 PM 03/17/2012 : 17:41:08 160 4.12 10.3 Mud to diverter 03/17/2012 17:55:24 224 4.12 10.3 diesel to tank 03/17/2012 18:01:30 169 4.14 10.3 No gas out diverter 03/17/2012 18:09:19 137 3.50 10.3 loosing prime 03/17/2012 18:44:37 0 0.12 10.3 Reset Total,Vol=269.99 bbl '. 03/17/2012 18:44:43 -5 0.10 10.3 261 bbls away 03/17/2012 18:44:48 -9 0.10 10.3 swap to diesel 03/17/2012 18:45:53 27 - 0.54 10.3 [Ilse! 03/17/2012 18:47:19 32 0.21 6.8 down on pump 03/17/2012 18:47:34 27 0.12 6.8 wash up to vac 03/17/2012 j 18:50:21 27 0.00 6.8 Reset Total,Vol=1.78 bel 03/17/2012 { 18:54:45 27 0.00 6.8 Well is Static 03/17/2012 j 18:58:43 78 0.00 8.4 wash up pump 03/17/2012 18:58:56 82 0.00 _--_-' -.-_ 8.4 ng down scafuidingonfloor 03/17/2012 19:15:58 14 0.00 8.3 :Blow down pump line 03/17/2012 21:54:33 5 0.00 8.4 I Reset Total,Vol=0.00 bbl 03/18/2012 ! 00:35:17 5 0.00 8.4 CMT PISM 03/18/2012 01:02:21 5 0.00 8.4 P)SM for cement done 03/18/2012 01:05:01 5 0.00 8.4 MI to take cement sameples through out job 1 03/18/2012 01:08:12 5 0.00 1 8.4 prime water line 03/18/2012 01:09:56 S 0.00 8.4 line up down drill pipe 03/18/2012 01:10:05 9 0.00 8.4 to pumop 2 bbls diesel and PT 03/18/2012 01:38:54 5 0.00 8.4 Valve fixed 03/18/2012 01:51:22 -14 0.00 6.9 line down drill pipe 03/18/2012 01:54:09 41 1.22 6.8 down on pump 03/18/2012 01:54:43 37 : 0.25 6.8 dose on floor for low PT 03/18/2012 01:56:22 124 0.14 6.8 all dear for PT 03/18/2012 01:59:11 1149 0.04 6.8 high PT 3,800 psi 03/18/2012 02:00:36 2994 0.00 6.8 bleed pressure __. -..... _.-- -- ---- `---- ------__t -. { 03/18/2012 02:02:22 27 0.00 6.8 line up to dril pipe to pump 2bbis diesel 03/18/2012 02:02:27 27 0.00 6.8 ', Reset Total,Vol=2.36 bbl 03/18/2012 j 02:08:59 ! 32 0.00 1 6.8 Reset Total,Vol=0.09 bbl 03/18/2012 02:09:15 , 14 0.00 6.8 chick replaced on floor 03/18/2012 02:11:22 64 0.23 6.8 dosed on floor 03/18/2012 02:12:04 1355 0.00 6.8 : 1000 03/18/2012 02:13:00 1117 0.00 6.8 high PT 3800 psi 03/18/2012 02:14:15 3731 0.00 6.8 PT Pass DSM 03/18/2012 02:16:40 3268 0.00 6.8 bleed line to tank 03/18/2012 ' 02:16:43 2962: 0.00 6.8 wash up truck 03/18/2012 02:17:50 0 0.16 6.8 Reset Total,Vol-2.44 bbl 03/18/2012 02:18:47 -18 I 0.26 8.3 wash diesel to vac 03/18/2012 02:28:30 ' 82 0.00 8.2 start batching ASL ----03/18/2012 i 02:28:34 78 0.00 8.2 Reset Total,Vol=2.82 bbl 03/16/2012 02:42:02 128 ! 0.0010.8 i cement to weight 10.7 ppg MB reads 10.7 ppg ,,.-- 03/18/2012 02:42:06 128 0.00 10.8 (line down drill pipe 03/18/2012 02:42:14 128 0.00 10.8 15 bbls h20 ahead of cement 03/18/2012 02:46:06 69 0.00 10.8 ;Reset Total Vol 5.06 bbl 03/18/2012 02:46:23 73 0.00 10.8 down on pump Page 2af3 • Well Reid Sob Start Customer 13ob Number Qugruk 2 2 Prudhoe Bay Mar/17/2012 Repsol I BC82-00084 Date......._r. Tints CMT YREAT_PRES RATE Density Message I24-hr : PSI B/M LB/0 I dock I 03/18/2012 02:46:37 78 1.51 10.9 Returns to diverter 03/18/2012 03:02:37 128 4.83 10.7 basing cement volumes off mix h20 03/18/2012 03:05:50 69 4.55 10.8 40 bbls mix h20 away 03/18/2012 j 03:05:56 j 60 4.57 10.8 4 bpm 03/18/2012 03:10:10 124 4.85 10.7 7 50 bbls mix h20 away=80 bbls 4 bpm 03/18/2012 I. 03:37:28 60 4.81 10.8 good returns 03/18/2012 03:38:51 64 4.81 10.7 110 bbls mix h20=175 bbls ASL 03/18/2012 03:45:47 87 ' 4.79 10.7 rig redprocating pipe 03/18/2012 04:02:37 110 5.02 10.6 swap silo at164 bbls mix h20 03/18/2012 04:05:27 64 5.02 10.6 diesel to tank 03/18/2012 04:33:53 46 2.33 10.7 cement to surface 03/18/2012 i 04:37:27 50 2.28 10.7 cmt to surface 10.1 03/18/2012 04:37:49 50 2.30 10.7 365 bbis away 03/18/2012 04:45:37 64 1.31 10.8 10.7 ppg at diverter 03/18/2012 04:49:59 55 0.53 10.7 400 MBBLS AWAY 10.4 PPG 03/18/2012 04:55:51 i SO 0.48 10.8 410 BBLS AWAY 03/18/2012 05:16:34 60 0.69 10.8 460 BBLS AWAY 03/18/2012 05:22:39 60 0.68 10.8 1 470 888.1.5 AWAY 03/18/2012 05:36:52 60 0.31 10.8 1 bringiing up desity 03/18/2012 05:38:12 37 0.29 12.2 1 suddng tub I 03/18/2012 05:41:16 73 1.63 11.9 tub sucked 11.95 03/18/2012 05:43:25 9 0.00 11.5 down on pump L03/18/2012 05:43:51 9 0.00 --.. 11.5. line to cellar 03/18/2012 j 05:49:08 9 0.12 8.7 2 bbls away 03/18/2012 05:49:34 5 0.04 8.6 I blow clown iron 03/18/2012 ! 05:50:46 I _ - - 0 0.00 ----_ -- 8 7 520 Nis pumped 10.7#ASL 03/18/2012 05:52:47 0 0.00 8.7 ant in place 5:52 AM 03/18/2012 05:56:12 23 0.00 8.6 air down line 03/18/2012 05:56:20 23 0.00 8.6 line dear 03/18/2012 05:56:28 32 0.00 , 8.6 wash up pump Post 3ob Summary Average Pump Rates,bid/min Volume of dud Injected,bbl -T -t Slurry II N2 'Mud I Maximum Rate 'Total Slurry Ned Spacer N2 3.0 10.2 5.7 840.5 0.0 0.0 .. L..__. _ _ ._1-_. ; - ------- -_ t__._- Treating Pressure Summary,psi Breakdown Ruld Maximum j Mai Average !Bump Plug to Breakdown Type Volume 1 Density 3946 i 0 75 Mud 206.0 bbl I 10.20113/gal Avg.N2 Percent I Designed Slurry Volume Displacement Nix Water Temp Cement Circulated to Surface' C Volume 55.0 bbl s/o i 510.0 bbl j 0.0 bbl 80 degf Washed Thru Parts n To R Customer or Authorised Representative Schlumberger supervisor Circulation Lost n Job Completed ... [!c] Bob Jones Peter Cahill • Page 3 of 3 (pitg nac-dtz_ { z11167c Regg, James B (DOA) From: Grimaldi, Louis R (DOA) Sent: Sunday, March 18, 2012 6:40 AM To: Regg, James B (DOA) Cc: Schwartz, Guy L (DOA) Subject: Q2 secure Finished pumping surf job. Hole vol about 150 bbls, pumped 470 bbls 10.7 ASL till clean returns then made them pump 50 bbls more cause I issed st pattys day. This report will be late. Dead tired and laying down. Sumika did not get cmt to surf. Will go watch topjob when they get pipe on location. Si kurnt i 1 (pr6 2 i z.00( o) 1 N) 2-41 4070 Regg, James B (DOA) From: Grimaldi, Louis R (DOA) Sent: Saturday, March 17, 2012 8:36 PM C/ lt°i(C To: Regg, James B (DOA) Cc: Schwartz, Guy L (DOA) Subject: Q2 progress Have pumped all available mud, has cleaned up nicely but still getting a little slush once in awhile. Have lots of cement available. Will pump cement until happy with in/out condition. Will be another late night. Look for results in morning. Lou Grimaldi Petroleum Inspector N.S. Pager 659-3607 Home 776-5402 Cell 252-3409 1 / • �� v (r[� zh)(.7p Regg, James B (DOA) From: Grimaldi, Louis R (DOA) Sent: Saturday, March 17, 20126:19 PM To: Regg, James B (DOA); Schwartz, Guy L (DOA) Subject: Re: Q2 We are getting strong returns, slushy mud with a slight amount of gas (no concern). Plan is to pump 300 Bbl's+ and see how returns look. If cleaned up start looking at 10.7 ASL. Pump that until clean CMT returns, pump a dry job and pull pipe. ✓ /! Original Messages From: Regg, James B (DOA) To: Schwartz, Guy L (DOA); Grimaldi, Louis R (DOA) Sent: Sat Mar 17 17:55:03 2012 Subject: Re: Q2 I think we should let Repsol follow their procedure. "Schwartz, Guy L (DOA)" <guy.schwartz(alaska.gov> wrote: Good news! ! I would cement drill pipe in place . . Not sure we benefit by pooh with it. 700' plug is a good plug. Lou / Jim . . . Any thoughts ? Sent from my iPhone On Mar 17, 2012, at 5:37 PM, "Grimaldi, Louis R (DOA)" <lou.grimaldi@alaska.gov> wrote: > Circulating to surface, getting diesel contaminated returns. Pipe appears_free. Just started, will advise. > Original Message > From: Grimaldi, Louis R (DOA) > To: Schwartz, Guy L (DOA) > Cc: Regg, James B (DOA) > Sent: Sat Mar 17 14:04:44 2012 > Subject: Re: Q2 > I am sure that will be considered also. Melting of the permafrost and hydrates would be a consideration. > We are just about to latch onto the DP and circ/pull. Hold on tight, will keep you updated. > Original Message > From: Schwartz, Guy L (DOA) > To: Grimaldi, Louis R (DOA) > Cc: Regg, James B (DOA) > Sent: Sat Mar 17 13:58:13 2012 > Subject: Re: Q2 > What about just bull heading hot fluid? If they cant pull free . . > Might 1 O P. melt ice and mud just enough > Sent from my iPhone > On Mar 17, 2012, at 12:54 PM, "Grimaldi, Louis R (DOA)" <lou.grimaldiPalaska.gov> wrote: » If they can circulate that would be my suggestion. » Original Message » From: Schwartz, Guy L (DOA) » To: Regg, James B (DOA) » Cc: Grimaldi, Louis R (DOA) » Sent: Sat Mar 17 12:43:26 2012 » Subject: Re: Q2 » If still stuck is there any thought of hot fluids to free up pipe? » Sent from my iPhone » On Mar 17, 2012, at 11:34 AM, "Regg, James B (DOA)" dim.reggOaalaska.gov> wrote: »> Excellent. Hope they can move that pipe and circulate. »> »> Jim Regg »> AOGCC »> »> 333 W. 7th Ave, Suite 100 »> Anchorage, AK 99501 »> 907-793-1236 »> »> Original Message »> From: Grimaldi, Louis R (DOA) »> Sent: Saturday, March 17, 2012 11:33 AM »> To: Regg, James B (DOA) »> Cc: Schwartz, Guy L (DOA) »> Subject: Q2 »> »> Good PT of 1350' plug. Severed pipe at 680' . Good mech indication, slow »> DP press bleed off, no indications in annulus. Rigging down HES and »> prepare to pump down DP. »> Will advise. 2 4 'ti } C,1 tLh1Z No Regg, James B (DOA) J 2"4( '(,70 From: Grimaldi, Louis R (DOA) Sent: Saturday, March 17, 2012 12:34 PM To: Regg, James B (DOA) Subject: Re: Q2 Initially they will tie into headpin and try to move pipe off of bales while attempting to circulate. Once accomplished, plan is to break out a single and circulate the same way. I think they will not be going through the top drive mud system. Original Message From: Regg, James B (DOA) To: Grimaldi, Louis R (DOA) Sent: Sat Mar 17 12:03:10 2012 Subject: RE: Q2 I heard yesterday that Repsol wanted to make press release after they got 3rd plug in that the well is secure. I did tell State On-scene Coordinator yesterday that the well was safed out to the point they could start doing delineation work outboard of diverter vent line. However, I agree with you that their desire to issue a press release can wait another day or so - just to be absolutely certain. I assume they are still going to be using SOS pumping equipment and the manifold they built from earlier attempts to circulate the well (tie in to goose neck on TD)? Jim Regg AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 Original Message From: Grimaldi, Louis R (DOA) Sent: Saturday, March 17, 2012 11:46 AM To: Regg, James B (DOA) Subject: Re: Q2 I am all for that. Bob missed his plane today and is getting a bit twitchy. He has been up here a long time. There has been some external pressure to declare the well "secure". In my opinion I would not turn my back on this till we get a good circulation of kill weight mud. Agree? Original Message From: Regg, James B (DOA) To: Grimaldi, Louis R (DOA) Cc: Schwartz, Guy L (DOA) Sent: Sat Mar 17 11:34:48 2012 Subject: RE: Q2 Excellent. Hope they can move that pipe and circulate. f Jim Regg AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 Original Message From: Grimaldi, Louis R (DOA) Sent: Saturday, March 17, 2012 11:33 AM To: Regg, James B (DOA) Cc: Schwartz, Guy L (DOA) Subject: Q2 Good PT of 1350' plug. Severed pipe at 680' . Good mech indication, slow DP press bleed off, no indications in annulus. Rigging down HES and prepare to pump down DP. Will advise. 2 Q 3r4-#z P zl«b-7O Regg, James B (DOA) From: Grimaldi, Louis R (DOA) Sent: Saturday, March 17, 2012 11:33 AM 4 -3117 lz� To: Regg, James B (DOA) 7 Cc: Schwartz, Guy L (DOA) Subject: Q2 Good PT of 1350' plug. Severed pipe at 680' . Good mech indication, slow DP press bleed off, no indications in annulus. Rigging down HES and prepare to pump down DP. Will advise. 0 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: March 17, 2012 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: Qugruk 2 Well Control Petroleum Inspector Operations report 21I1(,7c Note, This is fifth report after handover of job from Chucc Scheve. Saturday, March 17, 2012; Pressure tested 900 psi down DrillPipe on plug that was pumped yesterday at 1350'. Very small volume (- 1/2 Bbl) of diesel was pumped indicating DP was still full. Pressure fell to approximately 800 psi and flat lined on the chart. Halliburton E-Line services was rigged up and a 2 1/2 od jet cutter was run in to 689' RKB. 500 psi was applied to the tubing and the cutter was fired. There was a strong mechanical indication of tubing successfully sPvPred. The pressure on the tubing rose slightly then fell off to approximately 300 psi. The wireline was withdrawn from the well and HES was rigged down SOS was rigged up and the drillpipe was latched up on the blocks. The bag was opened and SOS began pumping 10.2 mud. Response from the annulus was immediate and some diesel was in the returns which consisted of mostly mud in the 10.0 pound range. Approximately 260 bbl's of mud was circulated and the returns seemed to be cleaned up nicely. They had pumped all the mud on hand and it was decided to begin the cement job as there was 700 bbl's on hand of the ASL. SOS Arctic Set Light Cement was on location and they began their cement prep. Total Time 18 hours. Attachments: 03172012 Repsol Q2 Cement Plug 1350 ft pressure test chart.pdf Confidential 2012-0317_S urface_P lug_prep_Qugruk-2_1g 1 of 1 * 0 -' i I II.- 30 M. - .---- — _ --f- _--_- _ ...-- , ----------- kt‘• ,,--;• _=-1<:----.- _---- _-1:7---7--- / ---7--- _._,_ •-_ --. , . 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A 0 ' /4„9, / dpi /// i ' 1 ,/ 1 ' II/ , / ,1 // / / ' \ \\\ • ''•\\'', '\\\ \\\' \ • \\-\\' 'N ' '`-- - a. ig gaf // /, / /' ,11// /7 \\ \ ,\ •\\ , \\\\ \ \ \ \' \\\\ ---- 00-/---L / / •\\\ , \, , \\\ , , \,,\ \\ .- \ , -, -_ 0 , 0100 / • , , \ • '/‘ \\\\ \'',\\\ \ \\\• , ,,, - aimgmai • / '/, / / / 0 /: • t/t , ‘, %,,\\\\ \ \" - - ' •-'--,?() ----"------ ,, "N" 'x',,----..--.----- on-------,--- ----- > „..-- - , , p ,, /1/ __ __ d, / , /0/ :-----=.17,-- ------- ------- ---- K.,,,,, / , \ 0 '-,- , --- --;----- N , „ • . ,, -..., ArWIEMFAImmmm.mw —)41/4 L MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg Il��Z �����L DATE: March 16, 2012 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: Qugruk 2 Well Control Petroleum Inspector Operations report 7iD Z111(0-7o Note, This is fourth report after handover of job from Chuck Scheve. Friday, March 16, 2012; Pressure tested 900 psi down DrillPipe on plug that was pumped yesterday at 1750'. Very small volume (- '/2 Bbl) of diesel was pumped indicating DP was still full. Pressure fell to approximately 800 psi and flat lined on the chart. Halliburton E-Line services was rigged up and after some issues with surface equipment were corrected 2' of 4 SPF 2" guns were run in to 1350' RKB. The tools fetched up and were worked but could not get deeper. This was not as expected in that cement top should have been approximately 1550' and water top at 1450'. I felt confident cement had not came up hole as there was not any pressure on the drillpipe when we opened up for the earlier pressure test this morning. As the depth WL sat down at was at the base of permafrost a more likely explanation would be some of the water spacer that was pumped had flashed to the side of the drill pipe and froze there. Contact was made with the AOGCC office and 1-56, approval given to perforate at that spot. 500 psi was applied to the inside of the DP and the guns were fired. The pressure on the DP fell off 200 psi and held steady I felt this a good sign as we most likely had a plug below this area and unless the formation broke severely it should provide a • ••• • - • . - i-.r • .•. As the wireline and spent guns were retrieved from the well the pressure on the tubing gradually fell to zero as would be expected on a dead well. SOS AS1 Cement was on location and they began their rigup. All lines were pressure tested to 3000 psi. An injectivity test was performed with diesel at 4 BPM w/450 psi. SOS prepared to pump cement. 103 barrels of 15.7 AS-1 was pumped at 600 psi @ 4BPM followed by 3 Bbl's fresh water spacer around a "Nert" type displacer. 2012-0316_P 1 ug3_Q ugruk-2_1g 1 of 2 During the shutdown of pumps at dropping the displacer upon startup a pressure of approximately 400 psi was noted. A 16 Barrel diesel freeze protect was pumped behind the spacer at approx 400 psi @4 BPM and slowed down to 2 BPM at which time I observed the pressure to fall to approximately 300 psi. I called this final circulating pressure and would base our future 500 psi pressure test on this pressure. All lines were blown down/freeze protected. In discussion with Bob Jones (Repsol) it was decided to wait a full 12 hours before attempting the pressure test of this plug. Total Time 18 hours. Attachments: 03162012 Repsol Q2 Cement Job 1350 ft Report.pdf Confidential 2012-0316_P1ug3_Qugruk-2_1g 2 of 2 ,$cblumbergerCementing Job Report CemCATv1.4 Perls @ i 34-13Z' Well Qugruk 2 Client Repsol Field Prudhoe Bay SIR No. BC8Z-00084 Engineer Peter Cahill Job Type Squeeze Country United States Job Date 03-16-2012 Time Treatment Pressure Rate - Density Messages 0J/1M01107:16:56 15:02:18 PJSM , Lined to kill tank iii to oumo air to check lines line air tested start prime up with diesel 1 �� 15:17:00 r - �.... 7 all primed up 7n ipu toodrill drill pipe to tll pump 2 bbls diesel WHP reads 0.0 / Reset Total,Vol=12.62 bbl 15:32:00 down on pump clear for low PT 1000 WHP 1100 psi 'i? .--.„_......... No Leaks Clear for High PT 3800 psi PT Pass DSM Mike Grubb Reset Total,Vol=2.51 bbl pressure bled 15:47:00 Line Down Drillpipe Injection Test 16:02:00 continue hose changed 16:17:00 Down on pump Vac truck and prime unit with water f I 16:32:00 Air up Silo Blow down pump line to kill tank 16:47:00 Start batching cement 17:02:00 AS1 Batched Up 1 3 bbls h20 ahead ti Reset Total,Vol=3.08 bbl Swap to AS1 to pump 100 bbls 17:17:00 WHP 100 psi MB reads 15.7 ppg whp 90 ri 17:32:00 C AS1 Volume Pumped=102.95 bbls 1 bbls h20 i Drop DP Wiper Ball Reset Total,Vol=1.04 bbl r kick ball out 2 bbls h20 1 Reset Total,Vol=2.09 bbl 15.9 bbls diesel displaced Cement in place 5:46 PM No returns throughout job 17:51:37 Sib to wash up Wash up unit Job End hh:mm:ss 0.00 800 1600 2400 3200 4000 0.00 1.2 2.4 3.6 4.8 0.0 5.0 8.0 11.0 14.0 17.0 20.0 03/16/2012 17:e1a2 — ------PSI — — B/M - LB/G 03/16/2012 18:19:27 . . , Schlumberger Cementing Service Report Customer Job Number Repsol BC8Z-00084 Well Location(legal) Schlumberger Location Job Start Qugruk 2 2 Prudhoe Bay Jeff Long Mar/16/2012 Field Formation Name/Type Deviation Bit Size Well MO Well TVD Prudhoe Bay Clean-Sandstone 1 deg 16.0 in 2700.0 ft 2695.0 ft County Beechey Point State/Province Alaska BHP BHST BHCT Pore Press.Gradient Well Mester Qugruk API/UWI 627 psi 40 degF 80 degF lb/gal Rig Name Drilled For Service Via Casing/Liner :Nabors 105 Oil Land Depth,ft Size,in Weight,lb/ft Grade Thread Offshore Zone Well Class Well Type 80.0 20.0 106.5 N80 New Exploration 0.0 0.0 0.0 Drilling Fluid Type Max.Density Plastic Viscosity Tubing/DrIH Pipe Spud Mud 12.00 lb/gal CP T/D Depth,ft Size,in Weight,lb/ft Grade Thread Service Line Job Type D 1447.0 5.0 19.5 5135 Cementing Squeeze D 0.0 0.0 0.0 Max.Allowed Tub.P Max.Allowed Ann.Press WH Connection Perforations/Open Hole 3800 psi psi none Top,ft Bottom,ft shot/ft No.of Shots Total Interval Service Instructions 2425.0 ft 2427.0 ft 4.00 7 5.0 ft 1748.0 ft 1750.0 ft 4.00 8 Diameter 1349.0 ft 1350.0 ft 4.00 4 0.420 in Treat Down Displacement Packer Type Packer Depth Drill Pipe 24.0 bbl none 0.0 ft Tubing Vol. Casing VoL Annular Vol. Openhole Vol. I 24.0 bbl bbl bbl bbl t Casing/Tubing Secured Li I 1 Hole Vol.Circulated prior to Cement El Casing Tools Squeeze Job Lift P 800 psi Shoe Type Squeeze Type Pipe Rotated El Pipe Reciprocated ❑ Shoe Depth ft Tool Type No.Centralizers Top Plugs 1 Bottom Plugs Stage Tool Type Tool Depth ft Cement Head Type Stage Tool Depth ft Tail Pipe Site In Job Scheduled For Arrived on Location Leave Location Collar Type Tail Pipe Depth ft Mar/16/2012 Mar/16/2012 Mar/16/2012 Collar Depth ft Sqz.Total Vol. bbl Data Time CMT TREAT PRES RATE Density Message 24-hr PSI B/M LB/G dock 03/16/2012 07:24:56 0 0.00 0.0 Started Acquisition 03/16/2012 15:02:45 0 0.00 -0.0 PJSM 03/16/2012 15:02:52 0 0.00 0.0 Lined to kill tank 03/16/2012 15:03:03 0 0.00 0.0 to pump air to check lines ' 03/16/2012 15:08:31 0 0.00 0.0 line air tested 03/16/2012 15:10:14 0 0.21 0.0 start prime up with diesel 03/16/2012 15:20:23 233 0.00 6.6 all primed up 03/16/2012 15:21:21 179 0.00 6.6 lining to drill pipe 03/16/2012 15:21:37 174 0.00 6.6 to pump 2 bbls diesel 03/16/2012 15:22:19 92 0.00 6.6 WHP reads 0.0 03/16/2012 15:22:24 101 0.00 6.6 Reset Total,Vol=12.62 bbl 03/16/2012 15:26:37 211 0.00 6.6 down on pump 03/16/2012 15:27:24 119 0.00 6.6 dear for low PT 1000 03/16/2012 15:28:38 1076 0.00 6.6 WHP 1100 psi 03/16/2012 15:29:57 810 0.00 6.6 No Leaks 03/16/2012 15:30:22 746 0.00 6.6 Clear for High PT 3800 psi 03/16/2012 15:34:02 3117 0.00 6.6 PT Pass DSM Mike Grubb 03/16/2012 15:34:30 3040 0.00 6.6 Reset Total,Vol=2.51 bbl 03/16/2012 15:36:25 23 0.00 6.6 pressure bled 03/16/2012 15:36:30 32 0.00 6.6 Line Down Drillpipe 03/16/2012 15:37:21 137 0.00 6.6 Injection Test Page 1 of 2 • C Well Field Job Start Customer lob Number Qugruk 2 2 Prudhoe Bay ! Mar/16/2012 Repsol BC8Z-00084 Date Time CMT_TREAT_PRES RATE Density Message 24-hr PSI B/M LB/G dock 03/16/2012 16:17:30 229 1.76 6.6 Down on pump 03/16/2012 16:18:48 229 0.00 6.6 Vac truck and prime unit with water 03/16/2012 16:32:04 55 0.00 8.4 Air up Silo 03/16/2012 16:37:56 96 0.00 8.4 Blow down pump line to kill tank 03/16/2012 16:58:17 101 0.00 8.3 Start batching cement 03/16/2012 17:04:40 96 0.00 15.8 A51 Batched Up 03/16/2012 17:05:00 92 0.00 15.8 3 bbls h20 ahead 03/16/2012 17:07:09 211 0.00 15.8 Reset Total,Vol=3.08 bbl 03/16/2012 17:07:32 192 1.03 15.8 Swap to AS1 03/16/2012 17:07:38 243 1.17 15.8 to pump 100 bbls 03/16/2012 17:17:06 558 4.24 15.7 WHP 100 psi 03/16/2012 17:22:21 645 4.28 15.7 MB reads 15.7 ppg 03/16/2012 17:23:36 719 4.30 15.8 whp 90 03/16/2012 17:32:56 14 0.00 15.7 AS1 Volume Pumped=102.95 bbls 03/16/2012 17:33:08 18 0.00 15.7 1 bbls h20 03/16/2012 17:34:03 27 0.53 9.1 Drop DP Wiper Ball 03/16/2012 17:34:18 9 0.00 9.1 Reset Total,Vol=1.04 bbl 03/16/2012 17:35:16 9 0.00 9.0 kick ball out 2 bbls h20 03/16/2012 17:36:48 -5 0.00 8.5 Reset Total,Vol=2.09 bbl 03/16/2012 17:44:27 243 0.00 6.6 15.9 bbls diesel displaced 03/16/2012 17:46:15 169 0.00 6.6 Cement in place 5:46 PM 03/16/2012 17:48:28 128 0.00 6.6 No returns throughout job 03/16/2012 17:48:36 128 0.00 6.6 Slb to wash up 03/16/2012 17:49:30 119 0.00 6.7 Wash up unit 03/16/2012 17:51:21 110 0.00 6.7 Job End Post Job Summary A ge Pump Rates,bbl/min Volume of Fluid Injected,bbl Slurry N2 Mud Maximum Rate Total Slurry Mud Spacer N2 2.8 5.1 145.3 0.0 0.0 Treating Pressure Summary,psi Breakdown Fluld Maximum Final Average Bump Plug to Breakdown Type Volume Density 3909 1 105 235 L I diesel 24.0 bbl 6.70 lb/gal Avg.N2 Percent Designed Slurry Volume Displacement Mix Water Temp Cement Circulated to Surface? ❑ Volume bbl cts 100.0 bbl 0.0 bbl 80 degF Washed Thru Perfs ❑ To ft Customer or Authorized Representative Schlumberger Supervisor Circulation Lost ❑ Job Completed ❑X Bob Jones Peter Cahill - Page 2 of 2 Regg, James B (DOA) Prom: Grimaldi, Louis R (DOA) ed9 3/i(.0117/ Sent: Friday, March 16, 2012 3:18 AM ( To: Regg, James B (DOA) Cc: Schwartz, Guy L (DOA) Subject: 1750' PT Attachments: 03162012 Repsol Q2 Cement Plug 1750 ft pressure test chart.pdf Jim /Guy, Got good PT on plug at 1750. Rigging up Wireline to punch holes at 1450. Grab an hour or two sleep and will report results of perf/injectivity test when completed. 30 Op' Lou Grimaldi Petroleum Inspector N.S. Pager 659-3607 Home 776-5402 Cell 252-3409 .4 0. - ‘50••••00,.........winr- ....,„.............7-- ib _,..0_,'"/,' IalioireiLmi is rtowrilioneirr 411.11r 10,41116.- / - ... °00.°.1.1. 01"umnrAmmftwa"oftwm.n.41rur"W444 .III'%44* N N 0 onismilialari.,_INWNOP, \ 4/ .I, .1 4 s(11.0trellitV4t \\1 ,/ i'. �:'.�' b1/•0id //��...�.►'►''��:► �• a�, 4 I / * 1 itteh„ :1,4 , 144,-es",� ♦ .`�,.. .' istil�� tf4't- �,� I �mo . � .�:tog Ks,►� ♦ �� itqfm, ' err i ��itII♦� qv,. .♦� �t� .������, o�� ,. 1 Isla 1 �� \,\\0 ,Is, I; Fo o.. ' 0 I I 1 106,041,14.-i, :t \ , \\ 7;. twill 1 .cuAlpirlitiewitlisve a... y �� 1118141140PAphillik.1 It •1�� ,111 �� oew Xya ♦ ♦ �1 lltlt.tt ��� .� Alitosimikol, Araistst% 4.4./........„. y / /0 amp II°610.10 40/4140=1110/0 / it #//4140 ..._._...•.moi / � D MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg -1-<e-44 31,�(i.v DATE: March 15, 2012 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: Qugruk 2 Well Control Petroleum Inspector Operations report Note, This is second report after handover of job from Chuck Scheve. Thursday, March 15, 2012; SOS AS1 Cement was on location this morning at approximately 05:30. The crews offloaded and "fluffed" the cement. All lines were pressure tested to 3000 psi and after a leak in a "Chiksan" swing was replaced and retested they were waiting on results from the cement lab. At approximately 12:30 the SOS lab provided competency of the test cement. 207 barrels of 15.7 AS-1 was pumped at 900-1000 psi @ 4BPM followed by 3 Bbl's fresh water spacer around a "Nerf" type displacer. During the shutdown of pumps at dropping the displacer upon startup a pressure of approximately 450 psi was noted on the floor. A 29 Barrel diesel freeze protect was pumped behind the spacer at approx 950 psi @4 BPM and slowed down to 2 BPM at which time I observed the pressure to fall to approximately 800 psi. I called this final circulating pressure and would base our future 500 psi pressure test on this pressure. All lines were blown down/freeze protected. In discussion with Bob Jones (Repsol) it was decided to wait a full 12 hours before attempting the pressure test of this plug. Total Time 18 hours. Attachments: 03152012 Repsol Q2 Cement Job 1750 ft Report.pdf - Confidential 2012-0315_Plug2_Qugruk-2_1g 1 of 1 Schiumberger Cementing Job report CemCATv1.4 - i -Per- s 17sr� �sz Well Qugruk 2 P 2-)11(0 7C Client Repsol Field Prudhoe Bay SIR No. BC8Z-00083 Engineer Peter Cahill Job Type Well Kill Country United States Job Date 03-15-2012 Time Treatment Pressure Rate Density Messages ay.vso12 10:53:07 line up down drill pipe to pump 1 bbl diesel and PT bleed to tank 11:08:00 slb standing by Reset Total,Vol=1.35 bbl 11:23:00 Reset Total,Vol=0.00 bbl lined up down drill pipe All clear on ground cellar and floor Low PT 1,000 psi 11:38:00 re-prim unit lining to kill tank lined up down drill pipe coming online 1 bbl diesel Reset Total,Vol=1.80 bbl 11:53:00 down on pump low pt 1000 psi tighten wing re-prime line Reset Total,Vol=0.94 bbl pump 1 bbl diesel 12:08:00 All clear for PT 1000 psi PT Pass via Shane DSM Reset Total,Vol=1.01 bbl Reset Total,Vol=0.00 bbl injectivity test lined down drillpipe Injectivity test pass 12:23:00 vac off diesel and prime unit with h20\ Reset Total,Vol=14.35 bbl 12:38:00 primed with h20 to blow down diesel in pump line 12:53:00 - Line blown down Start batch time:12:54 -- - batched ready to pump 3 bbls h20 3 bbls away 13:08:00 swap to cement Reset Total,Vol=3.92 bbl no returns cmt to perfs no returns start other compressor 13:23:00 pressure loss on silo 38 bbls mix h20 away WHP 450 on floor 13:38:00 Down on pump 207 bbls away 13:53:00 lining for 1 bbl h20 1 bbl h20 away drop plug 14:08:00 down on pump 26 bbls diesel away line to bleed tank and bleed pressure 26 bbls displaced cement in place 2:09 PM 14:18:32 Wash up pump Blow down pump line Line blown down hh:mm:ss 0.00 Soo 1600 2400 3200 4000 0.00 2.0 4.0 6.0 8.0 10.0 5.0 8.0 11.0 14.0 17.0 20.0 03/13/2012 u:u:n PSI —.__. B/M _ ._._..._ LB/G 03/15/2012 15:02:59 , , . Schlumberger Cementing Service Report Customer lob Number Repsol BC8Z-00083 Well Location(legal) Schlumberger Location Job Start Qugruk 2 2 Prudhoe Bay Jeff Long Mar/15/2012 Field Formation Name/Type Deviation Bit Size Well MD Well TVD Prudhoe Bay Clean-Sandstone 1 deg 16.0 in 2700.0 ft 2695.0 ft County Beechey Point State/Province Alaska BHP BHST BHCT Pore Press.Gradient Wall Master Qugruk API/UWI 1429 psi 74 degF 80 degF lb/gal Rig Name Drilled For Service Via Casing/Liner Nabors 105 Oil Land Dept,ft Size,in Weight,lb/ft Grade Thread Offshore Zone Well Class Well Type 80.0 20.0 106.5 New Oil 0.0 0.0 0.0 Drilling Fluid Type Max.Density Plastic Viscosity Tubing/Drill Pipe Spud Mud 12.00 lb/gal CP T/D Depth,ft Size,in Weight,lb/ft Grade Thread Service Line Job Type D 1750.0 5.0 19.5 S135 Cementing Well Kill 0.0 0.0 0.0 Max.Allowed Tub.Press Max.Allowed Ann.Press WH Connection Perforations/Open Hole 3800 psi psi None Top,ft Bottom,ft shot/ft No.of Shots Total Interval Service Instructions 2427.0 ft 2429.0 ft 4.00 8 4.0 ft 1750.0 ft 1752.0 ft 4.00 7 Diameter 0.0 ft 0.0 ft 0.00 0 0.420 in Treat Down Displacement Packer Type Packer Depth Drill Pipe 26.0 bbl None ft Tubing Vol. Casing Vol. Annular Vol. openhoie Vol. 31.1 bbl bbl 0.0 bbl bbl Casing/Tubing Secured ❑ 1 Hole Vol.Circulated prior to Cement ❑ Casing Tools Sq lob Lift Pressure psi Shoe Type Squeeze Type _ -- - Pipe Rotated 0 Pipe Reciprocated ❑ Shoe Depth ft Tool Type No.Centralizers Top Plugs 1 Bottom Plugs Stage Tool Type Tool Depth ft Cement Head Type Stage Tool Depth ft Tail Pipe Size in Job Scheduled For Arrived on Location Leave Location Collar Type Tail Pipe Depth ft Mar/15/2012 Mar/15/2012 Mar/15/2012 Collar Depth ft Sqz.Total Vol. bbl Date Time CMT_TREAT_PRES I RATE Density Message 24-hr PSI BM LB/G dock I 03/15/2012 10:53:07 5 0.00 6.8 Started Acquisition 03/15/2012 10:54:27 9 0.00 6.8 line up down drill pipe 03/15/2012 10:54:37 5 0.00 6.8 to pump 1 bbl diesel and PT 03/15/2012 11:00:26 64 0.02 6.8 bleed to tank 03/15/2012 11:12:12 5 0.00 6.8 slb standing by 03/15/2012 11:12:17 5 0.00 6.8 Reset Total,Vol=1.35 bbl 03/15/2012 11:27:41 5 0.00 6.8 Reset Total,Vol=0.00 bbl 03/15/2012 11:27:49 5 0.00 6.8 lined up down drill pipe 03/15/2012 11:29:55 105 0.00 6.8 All dear on ground cellar and floor 03/15/2012 11:32:09 73 0.00 6.8 Low PT 1,000 psi 03/15/2012 11:34:12 92 0.00 6.8 re-prim unit 03/15/2012 11:34:21 87 0.00 6.8 lining to kill tank 03/15/2012 11:41:38 82 0.00 6.7 lined up down drill pipe 03/15/2012 11:41:41 82 0.00 6.7 coming online 03/15/2012 11:41:46 82 0.00 6.7 1 bbl diesel 03/15/2012 11:41:51 82 0.00 6.7 Reset Total,Vol=1.80 bbl 03/15/2012 11:43:22 183 0.00 6.7 down on pump 03/15/2012 11:44:50 119 0.00 6.7 low pt 1000 psi 03/15/2012 11:51:35 110 0.00 6.7 tighten wing 03/15/2012 11:51:55 105 0.00 6.7 re-prime line 03/15/2012 11:52:02 110 0.00 6.7 Reset Total,Vol=0.94 bbl Page 1 of 2 0. n Well Field lob Start Customer lob Number Qugruk 2 2 Prudhoe Bay Mar/15/2012 Repsol BC8Z-00083 Date Time CHT_TREAT_PRES RATE Density Message 24-hr PSI B/M LB/B dock • 03/15/2012 11:53:50 215 0.00 6.7 All clear for PT 1000 psi 03/15/2012 11:59:50 3223 0.00 6.7 PT Pass via Shane DSM 03/15/2012 12:00:10 3154 0.00 6.7 Reset Total,Vol=1.01 bbl 03/15/2012 12:11:38 92 0.00 6.7 Reset Total,Vol=0.00 bbl 03/15/2012 1.2:12:12 92 0.00 6.7 injectivity test 03/15/2012 12:12:17 92 0.00 6.7 lined down drillpipe 03/15/2012 12:18:57 284 0.00 6.7 Injectivity test pass 03/15/2012 12:23:30 0 0.00 6.4 vac off diesel and prime unit with h20\ 03/15/2012 12:23:50 5 0.00 6.7 Reset Total,Vol=14.35 bbl 03/15/2012 12:43:57 142 0.00 8.4 primed with h20 03/15/2012 12:44:13 137 0.00 8.4 to blow down diesel in pump line 03/15/2012 12:52:08 0 0.00 8.4 Line blown down 03/15/2012 12:52:14 0 0.00 8.4 Start batch 03/15/2012 12:53:14 5 0.00 8.4 time:12:54 03/15/2012 12:56:12 87 0.00 15.8 batched 03/15/2012 12:56:46 87 0.00 15.8 ready to pump 3 bbls h20 03/15/2012 12:58:23 307 2.02 -3.1 3 bbls away 03/15/2012 12:58:37 247 0.04 -3.1 swap to cement 03/15/2012 13:00:12 165 0.00 15.8 Reset Total,Vol=3.92 bbl 03/15/2012 13:03:26 957 4.24 15.6 no returns 03/15/2012 13:08:24 764 4.24 15.7 cmt to perfs 03/15/2012 13:09:05 824 4.24 15.7 no returns 03/15/2012 13:11:48 829 4.24 15.7 start other compressor 03/15/2012 13:12:03 865 4.24 15.6 pressure loss on silo 03/15/2012 13:16:31 970 4.30 15.8 38 bbls mix h20 away 03/15/2012 13:17:26 984 4.24 15.8 WHP 450 on floor t. 03/15/2012 13:50:16 471 0.00 16.1 Down on pump 207 bbls away '� 03/15/2012 13:50:21 467 0.00 16.2 lining for 1 bbl h20 r 03/15/2012 14:02:41 755 4.04 6.7 1 bbl h20 away drop plug 03/15/2012 14:07:59 755 0.00 6.7 down on pump 26 bbls diesel away 03/15/2012 14:08:07 755 0.00 6.7 line to bleed tank and bleed pressure 03/15/2012 14:08:11 751 0.00 6.7 26 bbls displaced 03/15/2012 14:09:19 0 0.00 6.7 cement In place 2:09 PM 03/15/2012 14:09:48 0 0.00 6.7 Wash up pump 03/15/2012 14:11:49 0 0.00 j 6.7 Blow down pump line 03/15/2012 14:18:11 14 0.00 6.7 Line blown down Post Job Summary , Average Pump Rates,bbl/min i Volume of Fluid Injected,bbl Slurry N2 Mud Maximum Rate Total Slurry Mud Spacer N2 3.3 4.8 256.7 0.0 0.0 Treating Pressure Summary,psi Breakdown Fluid Maximum Final Average Bump Plug to Breakdown Type Volume Density 3831 0 435200.0 bbl 15.70 lb/gal Avg.N2 Percent Designed Slurry Volume Displacement Mix Water Temp Cement Circulated to Surface? ❑ Volume bbl 200.0 bbl 0.0 bbl 80 degF Washed Thru Perfs ❑ To ft Customer or Authorized Representative Schlumberger Supervisor Circulation Lost 1 Job Completed EX Bob Jones Peter Cahill - - Page 2 of 2 •, , Regg, James B (DOA) From: Grimaldi, Louis R (DOA) Sent: Thursday, March 15, 2012 3:43 PM C To: Schwartz, Guy L (DOA); Regg, James B (DOA) Subject: RE: Status Q2 Attachments: 03152012 Repsol Q2 Cement Job 1750 ft Report.pdf Just received cementer's pump report. I like the way this guy made his out. We did have some problems with the chart recorder on the rig which is why they show a low pressure. The sensor line was a little slushy. The SOS pressure was not affected by this. It is getting cold again, we were at-40 today and a little breeze just to sting your face a bit, starting to challenge the guys a little. Lou Grimaldi Petroleum Inspector N.S. Pager 659-3607 Home 776-5402 Cell 252-3409 From: Schwartz, Guy L (DOA) Sent: Thu 3/15/2012 14:46 To: Grimaldi, Louis R (DOA); Regg, James B (DOA) Subject: RE: Status Q2 Thanks Lou, Sounds good as far a pressures go. Can you have them send us the Cementing chart as before.... Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Grimaldi, Louis R(DOA) Sent: Thursday, March 15, 2012 2:33 PM To: Regg, James B (DOA); Schwartz, Guy L(DOA) Subject: Re: Status Q2 Just finished 2nd plug. 207 Bbls 15.8 AS1 in place, maintained good pressure throughout 1000 at 4 BPM, 800 psi FCP at 2 BPM. 700 psi at shut-in. WOC about 10-12 hrs and PT to 1300. Sound OK? From: Regg, James B (DOA) To: Grimaldi, Louis R (DOA) Sent: Thu Mar 15 14:01:43 2012 Subject: Status Q2 Just curious what's happening. Jim Regg V . Regg, James B (DOA) From: JONES, ROBERT [robert.jones@repsol.com] Sent: Wednesday, March 14, 2012 2:34 PM To: Regg, James B (DOA); Schwartz, Guy L (DOA) Subject: Compressive Strength "G" Cement Pumped FYI.... Time CS 12:00 498 psi 12:01 500 psi 24:00 1746 psi 26:59 2000 psi These tests were run at 80 deg F ??? We are presently waiting on information on the Arctic Set 1 cement. Bob R PiOt Robert"Bob"Jones Drilling Manager- Onshore REPSOL USA 2001 Timberloch Place, Suite 3000 The Woodlands,TX 77380 Tel: 281.863-1618 Cell: 713.304-0354 robert.iones©reosol.com AVISO LEGAL: Esta information es privada y confidential y esta dirigida unicamerate a su destinatario.Si usted no es el destinatario original de este mensaje y por este medio pudo acceder a dicha informaciOn,por favor,elimine el mensaje.La distribution o copia de este mensaje esta estrictamente prohibida. Esta comunicacion es solo para propesitos de informaciOn y no deberia ser considerada come una declaration Oficial de Repsol YPF.La transmisien del correo electronico no garantiza que sea seguro o este libre de error, Por consiguiente.no manifestamos que esta informaciOn sea completa o precisa.Toda informacion esta sujeta a alterarse sin previo aviso. This information is private and confidential and intended for the recipient only. If you are not the intended recipient of this message you are hereby notified that any review,dissemination,distribution or copying of this message is strictly prohibited.This communication is for information purposes only and should not be regarded as an official statement from Repsol YPF.Email transmission cannot be guaranteed to be secure or error-free.Therefore,we do not represent that this information is complete or accurate and it should not be relied upon as such.All information is subject to change without notice. 1 pp 1'e 2_3110!_z34z-r Schlumberger Cementing Job Report CemCATv1.4 Well Q-2 Pr6 Z11‘(,-/G Client Repsol Field SIR No. Engineer Richard Grant Job Type Well Kill Cement Country United States Job Date 03-14-2012 Time Pressure Rate Density Messages 03:06:25 1 Safety Meeting 03:21:00 03:36:00 03:51:00 04:06:00 04:21:00 04:36:00 04:51:00 ml lines with diesel pumping to tank start pumping down DP 05:06:00 Pressure visible leaks no leaks on Iron,TIW is possible leak start Injection test 05:21:00 Reset Total,Vol-3.02 tel 1.5 BPM 2 BPM shut down oumoina diesel.start dean up 05:36:00 Reset Total,Vol=23.79 bbl Reset Total,Vol=0.46 bbl 05:51:00 .. Start Botching Cement Start water ahead pumping water gravIty,2 bots away 3 bbisaway 4 bbls away shut down/5 bbls away 06:06:00 start pumping cement Reset Total,Vol=0.01 tel Reset , ol= MI Reset TotalTotal,VolV =0.062.00 MI MI motion riot working properly,mein 06:21:00 no returns I f"' Reset Total,Vol=129.76 bbl 06:36:00 - / shut down,drop ball Start Pumping Diesel Resat Total,Vol=3.00 bot slow rete 06:48:52 Shutdown wad+up blow down line kb Completed Ok hh:mm:ss 1 0.W 1000 ]000 SRA 4000 s000 400 2A 4A 4A 1.0 10.0 SA 140 aro 240 25.0 ev,4>a1=,41.0 PSI B/M LB/G 03/14/2012 07:39:02 ,4111110° 9ugrukPlt 1(27c � Regg, James B (DOA) From: JONES, ROBERT[robert.jones@repsol.comj R��1` (41(-z— Sent: Wednesday, March 14, 2012 7:53 AM To: Regg, James B (DOA); Schwartz, Guy L (DOA) Cc: Scheve, Charles M (DOA); Grimaldi, Louis R (DOA); Crisp, John H (DOA); Jones, Jeffery B (DOA) Subject: Cement Plug Attachments: photo.JPG; photo b.JPG Jim/Guy, • We successfully mixed and pumped 625 sx Class "G" cement at 15.8 ppg through perforations at 2.340'-2,342' and displaced with Nerf ball leaving 1.8 bbl (200') cement in the DP. Injection rate prior to job: 3 %2 bbl/min at 1,100 psi. W/L lubricator stood back in derrick. Will WOC 12 hrs. Best Regards, Bob Jones REP,01 Robert"Bob"Jones Drilling Manager-Onshore REPSOL USA 2001 Timberloch Place, Suite 3000 The Woodlands, TX 77380 Tel: 281.863-1618 Cell: 713.304-0354 robe rt.ionesP reosol.com AVISO LEGAL: Esta informacion es privada y confidencial y este dirigida unicamente a su destinatario.Si usted no es el destinatario original de este mensaje y por este medio pudo acceder a dicha informacion;por favor,elimine el mensaje. La distribucien o copia de este mensaje este estrictamente prohibida. Esta comunicacien es solo para propositos de informacion y no deberia ser considerada como una declaracion oficial de Repsol YPF. La transmisien del correo electrenico no garantiza que sea seguro o este libre de error.Por consiguiente,no manifestamos que esta informacion sea complete o precise.Toda informacion este sujeta a alterarse sin previo aviso. This information is private and confidential and intended for the recipient only. If you are not the intended recipient of this message you are hereby notified that any review,dissemination;distribution or copying of this message is strictly prohibited,This communication is for information purposes only and should not be regarded as an official statement from Repsol YPF.Email transmission cannot be guaranteed to be secure or error-free.Therefore,we do not represent that this information is complete or accurate and it should not be relied upon as such.All information is subject to change without notice. 1 A 4...14111° d ,:.. iie ,,, <✓r' 41411100P-4116 /001 .0.,te, a. ie'' et .41110 ;" �,. ` g yPi • R ,e+ 4 jl alla I t # Z. 1 . i /�F T t ' tee. 11111110r "�j_��_� N, Ir M .,,�/ i . - ,"s frir cam" ^,. I • }J� 4 ,Alfi , ,-,--- ' ,4:). t 1 .111N A N E :Sr. -14% w, 2 4t 2 N - a 4 6 O N i, MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg1 3I'y ' DATE: March 14, 2012 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: Qugruk 2 Well Control Petroleum Inspector Operations report zli 11,7© Note, This is my first report after returning from R&R. Tuesday, March 13, 2012; I returned to location this afternoon after making changeout and handover with Chuck Scheve. I met with Dave Richardson (Nabors TP) and Mike Grubb (Solsten) Repsol representative who gave a situation update from the work performed yesterday and today. The wireline crew was rigging down after their perforating run and reported that they had successfully shot circulating holes at 2375' (RKB). The cement had been ordered and was being blended and would be shipped out when ready. Total Time 8 hours. Wednesday, March 14, 2012; Cement arrived 03:00 this morning. Plan forward; 1. Rig up to perform injectivity test in attempt to obtain 3BPM with diesel. 2. 3 Bbl fresh water lead. 3. 129 Bbl 15.8 Cement. 4. 1 Bbl fresh water tail. 5. Wiper ball. e°" 6. 2 Bbl's Fresh Water. 7. 32 Bbl's diesel to displace DP to 2140'. 8. Block in DP to allow cement to thicken. v The pump job went as planned, initial pump pressure built quickly to wok" approximately 900-1000 psi with the fresh water flush. The 15.8 cement was pumped and pressure rose to approximately 1350 psi and as the hydrostatic weight in the DP rose the pumping pressure fell off slightly back to approximately 1000 psi. The fresh water tail and wiper were pumped followed by a fresh water spacer then diesel freeze protect. At shutdown approximately 800 psi was left on the DP. The FO FSV was closed and the surface iron was blown down. 2012-0314_Plug 1_Plug2_Qugruk-2_1g 1 of 2 I travelled over to the Pioneer location during which time I spoke with Jim Regg about plan forward. I received a page from the Q2 company man that they would be ready to perforate upon my return. When I arrived the HES unit was on depth at 1750 to 1752 (RKB). With 500 psi on DP the pelf guns were fired at which time the pressure on the drillpipe fell off quickly. No response at the open diverter line was noted. The AS1 cement has been ordered and should be on location in the morning. Attachments: None Confidential 2012-0314_Plug 1_Plug2_Qugruk-2_lg 2 of 2 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg '.l 1 3/0/1/2 DATE: March 14, 2012 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: Qugruk 2 Well Control Petroleum Inspector Operations report PTO 2_106,7o 06,70 Note, This is my first report after returning from R&R. Tuesday, March 13, 2012; I returned to location this afternoon after making changeout and handover with Chuck Scheve. I met with Dave Richardson (Nabors TP) and Mike Grubb (Solsten) Repsol representative who gave a situation update from the work performed yesterday and today. The wireline crew was rigging down after their perforating run and reported that they had successfully shot circulating holes at 2375' (RKB). The cement had been ordered and was being blended and would be shipped out when ready. Total Time 8 hours. Wednesday, March 14, 2012; Cement arrived 03:00 this morning. Plan forward; 1. Rig up to perform injectivity test in attempt to obtain 3BPM with diesel. 2. 3 Bbl fresh water lead. 3. 129 Bbl 15.8 Cement. 4. 1 Bbl fresh water tail. 5. Wiper ball. - 6. 2 Bbl's Fresh Water. 7. 32 Bbl's diesel to displace DP to 2140'. 8. Block in DP to allow cement to thicken. I will report later how this plan worked out. - Attachments: None Confidential Well Control Qugruk 2 03-14-12 AM LG 1 of 1 Regg, James B (DOA) From: Regg, James B (DOA) Sent: Wednesday, March 14, 2012 8:43 PM 3/1SII-a-- To: To: Grimaldi, Louis R (DOA) Cc: Schwartz, Guy L(DOA) Subject: Re: Q2 I agree. "Grimaldi, Louis R (DOA)" <lou.grimaldiialaska.gov> wrote: 3/14 evening update. We had a deviation from the program. Bob Jones was under the impression that they did not have to tag and he had the HES guys run the guns in. When I got to the rig they were on depth, armed and ready to fire. There was 500 psi holding on the DP. We discussed options and decided to fire and pull out. I agreed with this as pulling live guns or tagging with them did not appeal to me. The option is there to run in and tag but I feel that the pressure on the DP confirms that there is a plug in the bottom. Lou Grimaldi Petroleum Inspector N.S. Pager 659-3607 Home 776-5402 Cell 252-3409 1 Regg, James B (DOA) From: Scheve, Charles M (DOA) Sent: Saturday, March 10, 2012 6:22 PM To: Regg, James B (DOA) Subject: Q2 Jim On 3/10/12 coil tubing was run in the drill pipe to 2455' (float in the DP) and the fluid changed over to 11.4 lb/per gal. calcium formate, pumping down the coil tubing and taking returns up the drill pipe. The drill pipe was then shut in and pressured up slowly to 2000 psi showing a very slow bled off with the pump down. The pressure was bled off the drill pipe and then slowly repressured to 2000 psi showing a slightly faster bled off rate. On the third pressure up the well started taking fluid at'A bbl per minute @ 50 psi, from this point 7 bbl were pumped with no fluid movement on the DP annulus. I can not pick an actual leak off point with equipment rigged up the way it is but the 11.4 fluid currently in the DP is real close. The plan when I left location was to rig down coil tubing and rig up E-line, if they decide to attempt to move pipe prior to logs I will attempt to get back out there for that. Chuck 1 Regg, James B (DOA) From: Shane McGeehan [shane.mcgeehan@solstenxp.com] ► r Zll i 7C Sent: Friday, March 09, 2012 5:56 AM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Subject: Nabors 105E 3-9-12 Attachments: Halliburton 3-9-12.xls Fcec f-- !-`l( Shane McGeehan Cleetv eka.-+" i)riIIing Supervisor 310 K Street,Suite 700 Ancho)age_AK 99501 MAIN (907)264400 DIRFC'1 (907)264-c,117 CI:1 (801)55h-09,1h shane.mcgeehan@solstenxp.com 1 t STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION j-r l`toY BOPE Test Report Submit to: jim.regg( alaska.gov doa.aoqcc.prudhoe.bayalaska.gov phoebe.brooksna alaska.gov Contractor: itallil7;,u•-}-0,A Rig No.: 0.61 DATE: 3/9/12 Rig Rep.: Adam Kendell Rig Phone: Rig Fax: Operator: Repsol Op. Phone: 907-685-1946 Op. Fax: Rep.: S.McGeehan/B.Rasch E-Mail shane.mcgeehan@solstenxp.com Well Name: Qugruk 2 PTD# 2111670 Operation: DrIg: Workover: Explor.: Test: Initial: x Weekly: Bi-Weekly Test Pressure: Rams: 250/2500 Annular: N/A Valves: 250/2500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 0 NA Housekeeping: P Drl. Rig P Lower Kelly 0 NA PTD On Location P Hazard Sec. P Ball Type 0 NA Standing Order Posted P Misc NA Inside BOP 1 NT FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 2 2" P Trip Tank NA NA Annular Preventer 0 N/A NA Pit Level Indicators NA NA #1 Rams I Blind P Flow Indicator NA NA #2 Rams I Shear NT Meth Gas Detector P • P #3 Rams I 2" slip NT H2S Gas Detector P P #4 Rams I 2"pipe P MS Misc 0 NA #5 Rams 0 N/A NA #6 Rams 0 N/A NA Quantity Test Result Choke Ln. Valves 1 2" P Inside Reel valves 2 P HCR Valves 2 2" FP Kill Line Valves 2 2" P Check Valve 0 N/A NA ACCUMULATOR SYSTEM: BOP Misc I Hyd line FP Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 2350 P Quantity Test Result 200 psi Attained 11 P No. Valves 5 P Full Pressure Attained 40 P Manual Chokes 2 ._-r Blind Switch Covers: All stations Yes Hydraulic Chokes 0 NA Nitgn. Bottles (avg): None CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 3 Test Time: 18.0 Hours Repair or replacement of equipment will be made within 1 days. Notify the North Slope 1 Inspector 659-3607, follow with written confirmation to Supervisor at: jim.reggalaska.gov Remarks: Shear and slip rams nonsealing, function tested OK Failure's#1 - Manual choke A failed, cycled and greased failed second attempt, rebuild parts will arrive 3-9-12 and choke will be rebuilt and tested at that time.#2 hyd hose slip ram leak replaced and passed. #3inside choke hyd valve greased cycled 24 HOUR NOTICE GIVEN YES x NO Waived By Date 3/7/12 Time 0930 Witness Jeff Jones ,,,-- Test .Test start 3-8-12 0700 Finish 3-9-12 0100 FF Form 10-424 (Revised 01/2011) Halliburton 3-9-12 F MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg sicl Z�41, DATE: February 18, 2012 P. I. Supervisor " FROM: Lou Grimaldi SUBJECT: Qugruk 2 Petroleum Inspector PTD 2111670 Well Control Operations Note: This is a continuation from previous report filed 2-17-12. Saturday, February 18, 2012: I returned to location this morning and met with Shane McGeehan (Solsten; Repsol) and Wayne Lansford (Wild Well Control) who gave a situation update from the work performed yesterday. The scaffolding crew had completed what appeared to be a secure rig up from the rig floor to the "goose-neck" area of the top drive and enclosed it with reinforced "Vis-Queen". A heater trunk from a diesel fired heater set outside of the sub-base was directed into this enclosure. The amount of heat making it into the enclosure was moderate as the heater trunk length was very long. This was discussed and agreed upon that bringing the top drive up to temperature slowly was probably better than overheating the equipment. WWC and Nabors drilling personnel felt that forcing the valve this early in the warm-up could end up damaging the valve(s) to which I agreed. An explosion-proof exclusion perimeter has been established around the rig. All equipment operating inside the perimeter that has the capability of igniting any subsequent gas releases has a man assigned to it that will shut down the engine when the gas alarm is given. There are roving men with gas detectors on duty. The wind has picked up this morning in a favorable direction which will serve to carry any gas off in the direction of the vent line end. GBR welders came to location and took measurements for "saddle" type clamps to address the wash-out areas of the diverter package. While they were discussing the design of these I was asked to participate. These will be straight- forward rubber seal, saddle-type clamps with "u-bolt" attachment. A crossover was also fabricated to adapt the "goose-neck" above the top drive with a pump-in connection (installed in place of the Kelly hose once removed from the top drive). We were anticipating the arrival of Repsol's Drilling Manager Bob Jones this morning and there was no work done with the exception of continuing the warm- up of the Top Drive. Mr. Jones arrived approximately 15:00 hours and immediately held an operations meeting which I was invited to attend. The present situation was discussed as well as some rumors that had been circulating 2012-0218_Well_Control_Nabors 105E_Qugruk-2_lg 1 of 2 as is always the case. Mr. Jones (Repsol), Shane McGeehan (Solsten), WWC Lansford and Wehrenberg, Nabors Toolpushers Richards and Keith Carter were in attendance. Following the operations meeting I had a private meeting with Mr. Jones and Shane McGeehan in which we discussed reporting and the need to keep the AOGCC informed of plan forward and situational changes. Mr. Jones gave Shane permission to include the AOGCC in the morning report chain. Mr. Jones made a tour of the location/rig with Shane and the WWC personnel. Upon his return Mr. Jones relayed that he did not foresee any pumping operations happening within the next few days. I discussed this with Jim Regg (P.I. Supervisor) and we agreed that an Inspector on location would not be required until a later date. This should be acceptable if communications remain consistent and informative. I relayed this to Shane McGeehan, Bob Jones and Mike Grubb (Solsten; Repsol night company representative). I was assured that reports would be forthcoming and timely. I traveled back to the AOGCC North Slope office in Deadhorse. Total Time: 18 hours. Attachments: None Confidential 2012-0218_W ell_Control_Nabors 105E_Qugruk-2_1g 2 of 2 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg �; DATE: February 17, 2012 P. I. Supervisor ZIzoJzoiv FROM: Lou Grimaldi SUBJECT: Qugruk 2 Petroleum Inspector PTD 2111670 Well Control Operations Thursday, February 16, 2012: I traveled to Repsol Petroleum's exploratory site Qugruk#2 to observe the well control operation being conducted on the Nabors 105E drilling rig. I met Brad Rasch (Solsten) who is the night company representative for Repsol at the command center which is some few miles from the subject well pad. We discussed operations up to that evening and the planned operations for the following morning which consisted of rigging up some scaffolding around the frozen "Top Drive" and drill pipe which was attached to it. There had been some discussion of well kill operations and I informed Brad that until a preliminary plan had been submitted in writing to the Commission there was not to be any iron rigged up on the Nabors Rig or the well itself. Brad informed me that they were days away from that point and they would comply with this requirement. Total Time: 11 hours Friday, February 17, 2012: I returned to location this morning and attended a meeting with Shane Mcgeehan (Solsten) who is the day company representative. Wild Well Control was represented by Wayne Lansford, Steve Wehrenberg and one other WWC person I did not get the name of. Nabors Alaska Drilling was represented by Charles "Dave" Richards and Mike Williams, both of whom are experienced, solid drilling men. Lowell Angellette (Newtech) —the drilling superintendent for Repsol —was on the speaker phone during the meeting. The operations up to that point and dangers involved with the future operations were discussed. I requested that a written assessment by Wild Well Control of the present situation be made available to the Commission at the earliest possible convenience. This was agreed to by Mr. Angellette. All parties concurred that it was safe enough to begin building the scaffolding around the "Top Drive". At this point I was escorted to the drilling location by Shane Mcgeehan. On location I made a walkthrough of the rig and took pictures of key areas (attached). There was an audible indication at the end of the 16" vent line of a slight amount of gas coming up the hole. The gas detectors we carried did not register any levels of combustible gas. 2012-0217_Well_Control_Nabors 105E_Qugruk-2_1g 1 of 9 The rig floor was deemed safe for scaffolding operations and the crew started bringing up equipment. I had a trouble light on my truck and left location at this time to bring the truck to Deadhorse DOT for diagnostics and an oil change. I plan to return to location when my truck is ready. Total Time: 18 hours (estimate) Attachments: Photos (11) Confidential 2012-0217_W ell_Control_Nabors 105 E_Qugruk-2_1g 2 of 9 Nabors 105E — Qugruk #2 PTD 2111670 Photos by AOGCC Inspector L. Grimaldi 2/17/2012 „ft 3 'fin -4 „,,,,,,, °, :.:' ” 40 ,,„„ J • e l/ • f t �o- 4 .., t ` I ', a,i III I ti, 1,•• I.F. It 11H et oft4 a w Nabors 105E well cellar; picture shows significant amount of frozen mud, water and wellbore debris on the floor, contained in the module. Estimated depth is up to 4 feet in some areas. 2012-0217_Well_Control_Nabors 105E_Qugruk-2_1g 3 of 9 4 S I't, tit 4 4 • t'. -., 11.141010004 w ♦ • ,..e'-.fin s.. X14 16-inch knife valve on diverter vent line; frozen mud and water indicating failure of the vent line upstream of knife valve and below 21-1/4-inch annular. 2012-0217_W ell_Control_Nabors 105 E_Qugruk-2_1g 4 of 9 1 $:01 V ji II .f, .i . , :� Iii �' , :N., • MN 4 4 ' `1 r *-Ito • . . • f .y I ' • i IN i i /.. , s Mud pumps; Estimated depth of frozen mud, water, and wellbore debris is up to 4 feet in places. 2012-0217_W ell_Control_Nabors 105E_Qugruk-2_1g 5 of 9 fitalaiglatitr f" 111 not all Af Rotary table; frozen mud, water and wellbore debris. 2012-0217_Well_Control_Nabors 105E_Qugruk-2_lg 6of9 � 1. 1 • 1111Firti 71-0 i t l 401010'' - • Views of Nabors 105E 2012-0217_W ell_Control_Nabors 105 E_Qugruk-2_1g 7 of 9 ..4iiioirobmiri 1 et . m..... 1 . 1 N _1,1 i 4 1}a ,. .M.» ti - ,!, -See -peer _ -r, — r..- - ... A .r Diverter vent line extending from rig substructure 1n 3j , t t } f I'l • J. _...__.jiii ,— - y Diverter vent line extending from rig substructure to left on photo 2012-0217_W ell_Control_Nabors 1 05E_Qugruk-2_1g 8 of 9 M ... aLI[A_ p�I r „ i. 791311. .,- . r' Fl . 1 Bf .,l r• tea. 11 1N `' R`! �.ffi vwc.ubww 4 xxCw,ge.�.., n ,ah ., ^ .... a �. .M"..: .@ .. Diverter vent line extending from rig substructure to left on photos 2012-0217_Well_Control_Nabors 105E_Qugruk-2_lg 9 of 9 Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) r Sent: Tuesday, January 31, 2012 3:54 PM To: 'Bill Penrose' Cc: DOA AOGCC Prudhoe Bay liv Subject: RE: Rig Change for Repsol Qugruk#2 PTD 211- -. :nd 211-168) Bill, Yes, we have the BOP equipment on file for Nabors 105 This email notification is sufficient for the Commission. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bill Penrose [mailto:bill@solstenxp.com] Sent: Tuesday, January 31, 2012 2:55 PM To: Schwartz, Guy L (DOA) Cc: JONES, ROBERT; ysa, rick (ext) jd"7 Subject: Rig Change for Repsol Qugruk #2 (PTD 211 and 211-168) Guy, This is a follow-up to our discussion of this morning. The drilling rig originally intended to drill the Repsol Qugruk#2 and which was referenced in that well's Application for Permit to Drill was Nabors Rig 106. There has been a change of rigs and this is to inform you that the rig now slated to drill Qugruk#2 is Nabors Rig 105. It is my understanding from our conversation that the Commission has on file the specifications for Rig 105 and that this email notification of rig change is sufficient for the Commission's purposes. Regards, &€€ ee w e Vice President/ Drilling Manager 'P 310 K Street, Suite 700 Anchorage, Alaska 99501 Main 907-279-6900 Direct 907-264-6114 Cell 907-250-3113 1/31/2012 Page 1 of 2 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Tuesday, January 31, 2012 12:25 PM To: 'Bill Penrose' Subject: RE: Repsol Qugruk#2 (PTD 211-167) Proposed Cementing Modification Bill, I reviewed the new cementing plan for Qugruk#2 and your new procedure is approved. Planning a two stage job is prudent in order to insure that the Torok( 1St stage TOC at 4500 ' md) is covered as well as cement the annulus adequately ( 2nd stage)for the planned sidetrack window. I will make the changes to our PTD file. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bill Penrose [mailto:bill@solstenxp.com] Sent: Monday, January 23, 2012 8:26 AM To: Schwartz, Guy L(DOA) Subject: Repsol Qugruk #2 (PTD 211-167) Proposed Cementing Modification Guy, Following up on our recent conversation,we have re-designed the cement job for the 9-5/8" intermediate casing in Repsol's Qugruk#2 well (Q2). It's now a two-stage job as indicated on the attached wellbore diagram and detailed cementing program. This re-design accomplishes the following: Stage I: - Covers and isolates the Torok interval (prognosed at 5,670' MD/TVD and known for lost circulation difficulties at EMWs>12.5 ppg)without exposing it to an elevated hydrostatic column imposed by bringing cement higher in the annulus. - Cements the 9-5/8" casing from the horizontal shoe up into the vertical section of the well. - Isolates the Torok interval from hydrostatic pressures imposed on the annulus during the pumping of Stage II. Stage II: - The port collar, previously to be set at 2,850'as a contingency, is now at 3,500' and will be used to ensure that there's good cement at 3,000'where we will later be setting a whipstock and milling a window in the casing to sidetrack this well. - There will now be cement across the 13-3/8" shoe as required for the eventual P&A of the well. - The 9-5/8"x 13-3/8" annulus will now be cemented to surface as required for the eventual P&A of the well. Please let me know if this revision to previously-approved PTD No. 211-167 is acceptable to the commission. Thanks and regards, 1/31/2012 Page 2 of 2 ecti 7,eivro4e Vice President/ Drilling Manager , 310 K Street, Suite 700 Anchorage, Alaska 99501 Main 907-279-6900 Direct 907-264-6114 Cell 907-250-3113 1/31/20 . Qugruk - 2 Sidetrack 1 Proposed Wellbore Diagram 20" Conductor Driven to Approx. 80' TD Port Collar @ 500' -� :ii:•:;. •iiiiiiiti �` •••••" 16" Hole • ?):: "'":�`` Permafrost Base @ 1,250' iiiiiie 13-3/8" Casing ••• ••••I•• L 80, 68 lbs /ft _mg.- TD @ 2,700' + e‘o 0 s <-1' iitia � um- P 44;::, ... Port Collar @ 3,500' `•'`1 S7'v4[9tt -411 i�'• Nanushuk 7 Top --- 3,885' 9-5/8" Casing L- 80, 47 lbs/ft 12-1/4" Hole 6,956' MD / 6,411 TVD iiil ....•, -.,,FTOC @ 5,000' 4.5" Liner Top '`'' Toe...a• E' s'6v.` A,t) 5,400' MD /TVD Sss Nitg Kuparuk C Top -- 6,295` :::J,► . I•♦tip.;.. Open Hole Plug to KOP ::::y 44�::r '::•'s0•. 44.:i:1:3; '14:4* 4.5", 12.6 lbs /ft Liner ►.,o� . .♦x'•2:;:;5:;. Nechelik Top --- 6,375' ;:<*4... J - 2 To - 6,720 "" ,'.i3i•:i.iii: i� N �;:i:•3****.**::*:.: . • • ❖ 6••..* :444 : 6-1/8" Horizontal Hole (1,000') Qugruk - 2 TD Qugruk - 2 ST 1 TD 7,000' MD / 7,000' TVD 7,956' MD / 6,411 ' TVD REV 19 JAN 2012 Schlumberger ECemCAD well cementing recommendation for 9 - 5/8in Longstring Stage 1 Operator : Repsol Well : Qugruk-2 Country : USA Field State : Alaska Prepared for : Mr.Bill Penrose Location • Proposal No. : Draft v2(2stg) Service Point : Prudhoe Bay Date Prepared : 01/19/2012 Business Phone : (907)659 2434 FAX No. Prepared by : Jeff Long Phone : (907)273-1778 ( Cell : (907)223-0093 E-Mail Address : slauper©slb.com o &TE Disclaimer Notice: Schlumberger submits this document with the benefit of its judgment.experience,and good oilfield practices. This information is provided in accordance with generally accepted industry practice.relying on facts or information provided by others,limitations,computer models,measurements,assumptions and inferences that are not infallible. Calculations are estimates based on provided information.All proposals.recommendations,or predictions are opinions only. NO WARRANTY IS GIVEN CONCERNING ACCURACY OR COMPLETENESS OF DATA,INFORMATION PRESENTED.EFFECTIVENESS OF MATERIAL.PRODUCTS OR SUPPLIES,RECOMMENDATIONS MADE.OR RESULTS OF THE SERVICES RENDERED. Freedom front infringement of any intellectual property rights of Schlumberger or others is not to be inferred and no intellectual property rights are granted hereby. Mark of Schlumberger Client : Repsol Well : Qugruk-2 Schlumberger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 1 : well description Configuration : Casing Stage : 1st of 2 Rig Type : Land Mud Line : 0.0 ft Total MD : 6956.0 ft BHST : 155 degF Bit Size : 12 1/4 in ft (x 1000) psi ._ _ _ 0 9 4 6 — — — 1 _.___ Frac _Slltstone— Pore ME - -■ 1 I i CD ' o ...."Sandstone.:: ll o— p_._-__\\ i _1- in ;Sandstone•• • o i cD— �" _ • i•Sandstone•• 1 I- I .. i O LiiiIIIIIL 47 Well Lithology Formation Press. Page 2 q2 cemcade v3 1-18-2012 cfw.01-20-2012, LoadCase 9 625in Longstring.Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlemberger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Previous String MD OD Weight ID (ft) (in) (lb/ft) (in) 2700.0 13 3/8 68.0 12.415 1st Stage Collar : 3500.0 ft Landing Collar MD : 6876.0 ft Casing/liner Shoe MD : 6956.0 ft Casing/Liner MD OD Joint Weight ID Grade Collapse Burst Thread (ft) (in) (ft) (Ib/ft) (in) (psi) (psi) 6956.0 9 5/8 40.0 47.0 8.681 L-80 4760 6870 BTC Mean OH Diameter : 12.250 in Mean Annular Excess : 30.0 % Mean OH Equivalent Diameter: 12.934 in Total OH Volume : 691.6 bbl (including excess) Max. Deviation Angle : 85 deg Max. DLS : 8.384 deg/100ft Directional Survey Data MD TVD Deviation Azimuth Dogleg Sev. (ft) (ft) (deg) (deg) (deg/100ft) 0.0 0.0 0.0 0.0 0.000 5456.0 5456.0 0.0 343.8 0.000 5600.0 5600.0 0.0 343.8 0.000 6000.0 5987.4 25.0 343.8 6.250 6656.0 6371.6 80.0 343.8 8.384 6956.0 6410.8 85.0 343.8 1.667 Formation Data MD Frac. Pore Name Lithology (ft) (lb/gal) (lb/gal) 1000.0 11.00 8.34 Permafrost Siltstone 1194.0 11.50 8.40 Base of Permafrost Shale 1500.0 12.00 8.45 Coal 2000.0 13.00 8.50 Shale 2608.0 13.90 8.55 Tuluvak/Sea bee Sandstone 3993.0 15.10 8.60 Nanushuk 7 Sandstone 5000.0 15.50 8.65 Shale 5701.0 12.50 8.70 Toroc Sandstone 6030.0 15.80 8.70 Sandstone 7000.0 15.90 8.70 HRZ Shale Page 3 q2 cemcade v31-18-2012.cfw.01-20-2012, LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Sekilierger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Geothermal Temperature Profile MD TVD Temperature Gradient (ft) (ft) (degF) (degF/100ft) 0.0 0.0 15 0.0 1194.0 1194.0 32 1.4 7000.0 6414.3 155 2.2 ft degF deg 0 1 nil 200 0 2 60190 -- ,-Geoth.Profile I ' Deviation Tubular Fluids - Annulus - __ ___� I \\ \\0\ o 0 o- kn l tti ( - l 0 o- +— 1_ I= u-) —a o . o- kr) 1ti- Temp. Profile At 157 min Deviation Page 4 q2 cemcade J3 1-18-2012.ctw;01-20-2012; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 SeMberger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 2: fluid sequence Job Objectives: Port Collar @ 3500-ft MD. Lead slurry to cover Toroc sand,Tail slurry for 1000' Original fluid Mud 11.80 lb/gal Pv: 19.932 cP Tv: 10.80 lbf/100ft2 Displacement Volume 503.4 bbl Total Volume 701.4 bbl TOC 4995.8 ft 1st stage collar 3500.0 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) MUDPUSH II 50.0 689.5 4306.3 12.50 k:6.74E-2 Ibf.s^n/ft2 n:0.314 Tv:8.56 lbf/100ft2 Stage 1 Lead 69.0 951.5 4995.8 13.50 Pv:82.135 cP Tv:3.87 lbf/100ft2 Stage 1 Tail 79.0 1008.7 5947.3 15.80 k:1.25E-2 Ibf.s^n/ft2 n:0.739 Ty:0.04 lbf/100ft2 Mud 503.4 0.0 11.80 Pv:19.932 cP Ty:10.80 lbf/100ft2 Static Security Checks: Frac 120 psi at 5701.0 ft Pore 455 psi at 2700.0 ft Collapse 4171 psi at 6876.0 ft Burst 6870 psi at 0.0 ft Csg.Pump out 117 ton Check Valve Diff Press 204 psi Page 5 q2 cemcade v3 1-18-2012.cfw;01-20-2012, LoadCase 9.625in Longstring;Version wcscem462_12 I Client : Repsol Well : Qugruk-2 Schiherger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring * CemCADE Client : Repsol Well :Qugruk-2 String :9-5/8in Longstring Stage 1 District :Prudhoe Bay Country : USA lb/gal ft O E 8 10 12 1I4 16 18 —Hydrostatic —Mn.Hydrostatic —Max.Dynamic O - —tiro.Dynanic O— —Frac x— --Fbre 8 O- • N N d E s' O O au — M g e > rn O - O - O - • O_ m Oin - _ 0 O - N O_ N 0 - ,i 0 O N T.T. Fluid Sequence Dynamic Well Security m i u g ■MUDPUSH II 50.0 bbl 12.50 lb/gal Herschel:k =6.74E-2 Ibf.s^n/ft2 n =0.314 Ty=8.56 Ibf/100ft2 4 Stage 1 Lead 69.0 bbl 13.50 lb/gal Bingham:W=82.135 cP Ty=3.87 Ibf/100ft2 IIIIStage 1 Tail 79.0 bbl 15.80 lb/gal Herschel:k =1.25E-2 Ibf.s^n/ft2 n =0.739 Ty=0.04 lbf/100ft2 ■Mid 503.4 bbl 11.80 lb/gal Bingham:FN=19.932 cP Ty=10.80 Ibf/100ft2 Total Depth = 6956.0 ft Top of Cement= 4995.8 ft *Mark of Schlumberger SChildeliPr Page 6 q2 cemcade v31-18-2012.cfw;01-20-2012; LoadCase 9.625in Longstring;Version wcscem462_12 r Client : Repsol Well : Qugruk-2 Scbllirger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 3: pumping schedule Start Job: Condition Mud, Circulate Bottoms Up, Note any losses. Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol lnj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 6.0 50.0 8.3 50.0 80 Spacer Ahead 5.0 0.0 80 Drop Bottom Plug Stage 1 Lead 4.0 69.0 17.3 69.0 80 Mix&Pump Lead Slurry Stage 1 Tail 4.0 79.0 19.8 79.0 80 Mix&Pump Tail Slurry 5.0 0.0 80 Drop Top Plug Mud 6.0 10.0 1.7 10.0 80 Kick-Out Plug w/Cmt.Pump 3.0 0.0 80 Line-Up Rig Pumps Mud 6.0 345.0 57.5 355.0 80 Displce w/Rig Pumps Mud 1.0 1.0 1.0 356.0 80 Bottom Plug at Float Collar Mud 5.0 137.4 27.5 493.4 80 Continue Displacement Mud 2.0 10.0 5.0 503.4 80 Slow Rate Shut-In 0.0 0.0 1.0 0.0 80 Bump Plug Shut-In 0.0 0.0 5.0 0.0 80 Pressure Up/Open Port Collar Total 02:31 hr:mn 701.4 bbl End Job: Open Port Collar as per Tool Operator Instructions. Dynamic Security Checks: Frac 17 psi at 5701.0 ft Pore 455 psi at 2700.0 ft Collapse 4165 psi at 6876.0 ft Burst 6519 psi at 0.0 ft Temperature Results BHCT 118 degF Simulated Max HCT 106 degF Simulated BHCT 104 degF Max HCT Depth 6246.2 ft CT at TOC 104 degF Max HCT Time 02:30:57 hr:mn:sc Static temperatures: At Time (hr:mn) 00:05 hr:mn Geo.Temp. Top of Cement (degF) 104 degF 122 degF Bottom Hole (degF) 104 degF 155 degF Page 7 q2 cemcade v31-16-2012.cfw,01-20-2012, LoadCase 9.625in Longstring:Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 3ckImolierger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring ECD at Casing Shoe: o Depth= 5670 ft Fluids at 6956 ft c`i gni N — Tts O 2— I g ai6-1 � I CL C Q Q JI Hydrostatic Dynamic I mow.Frac Pore Lo. I � (C7)i.] � ! I co T —� 0 20 40 60 80 100 120 140 160 Time (min) Page 8 q2 cemcade v3 1-18-2012.cfw;01-20-2012; LoadCase 9.625in Longstring;Version wcscem462_12 Client : Repsol Well : Qugruk-2 Scat hli" String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring ECD at Toroc Sand: o Depth= 5670 ft N o (.; O) • N a� <Q Hydrostatic Dynamic 4.111.00 Frac Pore U) of 0 of U) co I I 0 20 40 60 80 100 120 140 160 Time (min) Page 9 q2 cemcade v3 1-18-2012.cfw;01-20-2012; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Scrihrgcr String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring BHCT Cement Slurry: co — o First Sack Temp. Last Sack Temp. O -N O -M 1.72 0(.0) O 00 0 2 � N LA t To f co N to co- _ 0 o_ co co_ co ti T T T rn 0 25 50 75 100 125 150 175 Time(min) Page 10 q2 cemcade v3 1-18-2012.cfw;01-20-2012; LoadCase 9.625in Longstring;Version wcscem462_12 Client : Repsol Well : Qugruk-2 Schlilmherger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Surface Pressure Model: O Calc.Purnp Ress. Calc.CemHP O O In O N �- ao a M O O— N O O- O i 0 20 40 60 80 100 120 140 160 Time (min) Page 11 q2 cemcade v31-18-2012.cfw;01-20-2012; LoadCase 9.625in Longstring Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schibergcr String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 4: fluid description Mud DESIGN Fluid No: 1 Density : 11.80 lb/gal Rheo. Model : BINGHAM Pv : 19.932 cP At temp. : 80 degF Ty : 10.80 Ibf/100ft2 Gel Strength :33.00 Ibf/100ft2 MUD Mud Type :WBM Job volume :503.4 bbl Water Type : Fresh VOLUME FRACTION Solids :5.0% Oil : 1.0% Water :94.0% MUDPUSH II DESIGN Fluid No:2 Density : 12.50 lb/gal Rheo. Model : HERSCHEL_B. k :6.74E-2 Ibf.s^n/ft2 At temp. :80 degF n :0.314 Ty :8.561bf/100ft2 Gel Strength :(Ibf/100ft2) Job volume :50.0 bbl Stage 1 Tail DESIGN Fluid No: 3 Density : 15.80 lb/gal Rheo. Model : HERSCHEL_B. k : 1.25E-2 lbf.s^n/ft2 At temp. : 115 degF n :0.739 Ty :0.04 lbf/100ft2 Gel Strength :(Ibf/100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.105 gal/sk Job volume :79.0 bbl Dry Density : 199.77 lb/ft3 Yield : 1.16 ft3/sk Quantity :381.46 sk Sack Weight : 94 lb Solid Fraction :41.3% BASE FLUID Type : Fresh water Density :8.32 lb/gal Base Fluid : 5.085 gal/sk Additives Code Conc. Function D046 0.2000%BWOC Antifoam D065 0.3000%BWOC Dispersant D167 0.3000%BWOC Fluid loss D153 0.2000%BWOC Antisettling D177 0.0200 gal/sk cement Retarder Page 12 g2cemcadev31-18-2012.cfw;01-20-2012, LoadCase9.625inLongstring;Version wcscem462_12 Client : Repsol Well : Qugruk-2 $chlohrger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Stage 1 Lead DESIGN Fluid No:4 Density : 13.50 lb/gal Rheo. Model : BINGHAM Pv :82.135 cP At temp. : 120 degF Ty :3.87 lbf/100ft2 Gel Strength :87.31 lbf/100ft2 DESIGN BLEND SLURRY Name : G Mix Fluid :9.288 gal/sk Job volume :69.0 bbl Dry Density : 199.77 lb/ft3 Yield : 1.72 ft3/sk Quantity :224.98 sk Sack Weight :94 lb Solid Fraction :27.9% BASE FLUID Type : Fresh water Density : 8.32 lb/gal Base Fluid :8.768 gal/sk Additives Code Conc. Function D046 0.2000%BWOC Antifoam D075 0.5000 gal/sk cement Extender D065 0.3000%BWOC Dispersant D167 0.3000%BWOC Fluid loss D153 0.2000%BWOC Antisettling D177 0.0200 gal/sk cement Retarder Page 13 q2 cemcade v3 1-18-2012.cfw,01-20-2012, LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 5: centralizer placement Top of centralization :0.0 ft Bottom Cent. MD :6936.0 ft Casing Shoe :6956.0 ft Tension at 1st stage :97669.85 lbf NB of Cent. Used :57 NB of Floating Cent. :57 Centralizer Placement Bottom MD Nbr. Cent./ Cent. Name Code Min.STO @ Depth (ft) Joint (%) (ft) 2436.0 6 1/10 1502395-9 5/8-6-POSITIVE W051 100.0 2416.0 3556.0 14 1/2 1502395-9 5/8-6-POSITIVE W051 100.0 3536.0 5956.0 12 1/5 1502395-9 5/8-6-POSITIVE W051 0.0 5921.5 6956.0 25 1/1 1502395-9 5/8-6-POSITIVE W051 51.8 6956.0 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) (lbf) (lbf) 1502395-9 5/8-6- W051 9 5/8 12.000 12.000 Yes Houma N.A. N.A. N.A. POSITIVE 0/0ft 0 20 40 60 80 100 Betw een Cent. + +At Cent. O— M , Well Pipe Standoff Page 14 q2 cemcade of 1-18-2012.cfw;01-20-2012; LoadCase 9.625in Longstring;Version wcscem462_12 Client : Repsol Well : Qugruk-2 SckIrger String : 9-5/8in Longstring Stage 1 District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section6: WELLCLEAN II ft 0 50 100 0 25 50 75 100 0 _ 1 Std Belw.Cent. - Mud Contamination Cement Coverage - Uncontaminated Slurry } .__, i -4__ I I y 11. 3 -.---i 0 _ , ' Fluid Sequence Cement Coverage Uncontaminated Slurry Rude[Coombe.,* Ruk Mud on the Wel z 3 z 4500 14500 4500 =mmillim 4500 5000 . —5000 5000 5000 c 5500- -5500 5500 5500 w II 4- 0. ,' 6000 ` 6000 0 0 6000 6000 0 6500 6500 6500 `° 6500 7000 -7000 7000 7000 1 a) ; m a) 3 a) -o o -o v o -o 16 3 3 0 z z ■Steg5 el Te .MWn11 ■M., ■Nam Page 15 q2 cemcade v3 1-18-2012,cfw,01-20-2012, LoadCase 9.625in Longstring,Version wcs-cem462_12 Schlumberger CemCAD E* well cementing recommendation for 9 - 5/8in Longstring Stage 2 Operator : Repsol Well : Qugruk-2 Country : USA Field State : Alaska Prepared for : Mr.Bill Penrose Location • Proposal No. : Draft v2(2stg) Service Point : Prudhoe Bay Date Prepared : 01/19/2012 Business Phone : 1907)659 2434 FAX No. Prepared by : Jeff Long Phone : (907)273-1778 E-Mail : slauper@slb.com well description Configuration Casing Stage:2nd of 2 Rig Type:Land Prev.String MD:2700.0 ft OD:13 3/8 in Weight:68.0 lb/ft Csg/Liner MD:6956.0 ft OD:9 5/8 in Weight:47.0 lb/ft 1st Stage Collar 3500.0 ft Landing Collar MD 6876.0 ft Casing/liner Shoe MD 6956.0 ft Mud Line 0.0 ft Total MD 6956.0 ft BHST 87 degF Bit Size 12 1/4 in ���� Mean OH Diameter 12.250 in t*? ‘Gra Annular Excess 30.0 To Mean OH Equivalent Diameter 12.934 in n Total OH Volume 691.6 bbl (including excess) • -g4UATE Disclaimer Notice: Schlumberger submits this document with the benefit of its judgment,experience,and good oilfield practices. This information is provided in accordance with generally accepted industry practice,relying on facts or information provided by others,limitations,computer models,measurements,assumptions and inferences that are not infallible. Calculations are estimates based on provided information.All proposals.recommendations,or predictions are opinions only. NO WARRANTY IS GIVEN CONCERNING ACCURACY OR COMPLETENESS OF DATA.INFORMATION PRESENTED.EFFECTIVENESS OF MATERIAL PRODUCTS OR SUPPLIES,RECOMMENDATIONS MADE,OR RESULTS OF THE SERVICES RENDERED. Freedom from infringement of any intellectual property rights of Schlumberger or others is not to be inferred and no intellectual property rights are granted hereby. *Mark of Schlumberger Page 1 q2 cemcade v31-16-2012.cfw;01-20-20t2; LoadCase 9.625 Lonstring Stage 2;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : 9-5/8in Longstring Stage 2 District : Prudhoe Bay Country : USA Loadcase : 9.625 Lonstring Stage 2 Section 1 : fluid sequence Job Objectives: Port Collar @ 3500-ft MD. Lead slurry to surface Toroc sand,Tail slurry to Surface Shoe at 2700' NOTE: It is necessary to reduce the mud weight after opening the port collar,from 11.8 ppg,to at least 10.0 ppg. This will allow the 10.7 ppg Permafrost cement to be placed in the casing by casing annulus,without channeling. Original fluid Mud 10.00 lb/gal Pv: 19.932 cP Ty: 10.80 Ibf/100ft2 Dead end fluid Mud 10.00 lb/gal Displacement Volume 256.2 bbl Total Volume 526.2 bbl TOC 0.O ft Previous TOC 4995.8 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) MUDPUSH II 50.0 0.0 10.50 k:6.74E-2 Ibf.s^n/ft2 n:0.314 Ty:8.56 Ibf/100ft2 Stage 2 Lead 162.0 2700.0 10.70 Pv:40.515 cP Ty:44.50 Ibf/100ft2 Stage 2 Tail 58.0 800.0 2700.0 15.80 k:1.25E-2 Ibf.s^n/ft2 n:0.739 Ty:0.04 Ibf/100ft2 Mud 256.2 0.0 10.00 Pv:19.932 cP Ty:10.80 Ibf/100ft2 Static Security Checks: Frac 465 psi at 2700.0 ft Pore 257 psi at 3500.0 ft Collapse 4242 psi at 3500.0 ft Burst 6870 psi at 0.0 ft Check Valve Diff Press 339 psi Page 2 q2 cemcade v31-18-2012.cfw,01-20-2012: LoadCase 9.625 Lonstring Stage 2,Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlnhrgnr String : 9-5/8in Longstring Stage 2 District : Prudhoe Bay Country : USA Loadcase : 9.625 Lonstring Stage 2 Section 2: pumping schedule Start Job: Lower Weight to 10.0 ppg Mud, Circulate Bottoms Up from Port Collar, Note any losses Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 6.0 50.0 8.3 50.0 80 Spacer Ahead 5.0 0.0 80 Start Mixing Lead Slurry Stage 2 Lead 5.0 162.0 32.4 162.0 80 Mix&Pump Lead Stage 2 Tail 4.0 58.0 14.5 58.0 80 Mix&Pump Tail 5.0 0.0 80 Drop Closing Plug Mud 8.0 10.0 1.3 10.0 80 Kick-out Plug w/cement unit • 3.0 0.0 80 Line Up Rig Pumps Mud 8.0 241.2 30.2 251.2 80 Displace to Port Collar . Mud 2.0 5.0 2.5 256.2 80 Pressure up on Closing Plug Total 01:42 hr:mn 526.2 bbl End Job: Open Port Collar as per Tool Operator Instructions. Dynamic Security Checks: Frac 253 psi at 2700.0 ft Pore 203 psi at 2700.0 ft Collapse 4242 psi at 3500.0 ft Burst 6310 psi at 0.0 ft Temperature Results BHCT 83 degF Simulated Max HCT 81 degF Simulated BHCT 79 degF Max HCT Depth 3305.6 ft CT at TOC 76 degF Max HCT Time 00:47:16 hr:mn:sc Static temperatures : At Time I (hr:mn) I (hr:mn) Geo.Temp. Top of Cement (degF) (degF) 15 degF Bottom Hole (degF) (degF) 87 degF I Page 3 g2cemradev31-18-2012.cfw:01-20-2012, LoadCase9.625LonstringStage 2;Version wcs-cem462_12 E . Client : Repsol Well : Qugruk-2 SCNIMMiger String : 9-5/8in Longstring Stage 2 District : Prudhoe Bay Country : USA Loadcase : 9.625 Lonstring Stage 2 CemCADE Client :Repsol Well :Qugruk-2 String :9-5/8in Longstring Stage 2 District :Prudhoe Bay Country :USA ft lb/gal 8 10 12 14 16 o -- - ' I I -Hydrostatic -Mn.Hydrostatic -Max.Dynarric CD -Aon.Dynarric Frac -Fore O - O_ 0 ii: O - y �- 3 0 O - O N - II 8 - N - 0 Lal of \ \ dO . M - 0 r::, - N c M _ o O - O N �_ 0 N Fluid Sequence Dynamic Well Security ■MUDPUSH II 50.0 bbl 10.50 lb/gal Herschel:k =6.74E-2 Ibf.s^n/ft2 n =0.314 Ty=8.56 Ibf/100ft2 E ii c 5 Stage 2 Lead 162.0 bbl 10.70 lb/gal Bingham:PV=40.515 cP Ty=44.50 Ibf/100ft2 ■Stage 2 Tail 58.0 bbl 15.80 lb/gal Herschel:k =1.25E-2 Ibf.s^n/ft2 n =0.739 Ty=0.04 11f/100ft2 ■Mud 256.2 bbl 10.00 lb/gal Bingham:PV=19.932 cP Ty=10.80 Ibf/100ft2 Total Depth = 6956.0 ft Top of Cement= 0.0 ft *Mark of Schlumberger SchIimberger Page 4 q2 cemcade v3 1-10-2012.cfw;01-20-2012; LoadCase 9.625 Lonstring Stage 2;Version wcs-cem462_12 L Client : Repsol Well : Qugruk-2 S I Nrg�r String : 9-5/8in Longstring Stage 2 District : Prudhoe Bay Country : USA Loadcase : 9.625 Lonstring Stage 2 ECD Modeled at Port Collar: Depth= 3500 ft ic iiIEFt rn- co , 0 10 20 30 40 50 60 70 80 90 100 110 Time(min) • Page 5 q2 cemcade v31-18-2012.ciw;01-20-2012; LoadCase 9.625 Lonstring Stage 2;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 ScMI krger String : 9-5/8in Longstring Stage 2 District : Prudhoe Bay Country : USA Loadcase : 9.625 Lonstring Stage 2 ECD Modeled at Surface Casing Shoe: Depth= 2700 ft M Hydrostatic Dynamic Tts Frac c Pore rn cn _ C O a)- coi 0 10 20 30 40 50 60 70 80 90 100 110 Time (min) • Page 6 q2 cemcade v31-18-2012.cfw;01-20-2012; LoadCase 9.625 Lonstring Stage 2;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 ScrImhergcr String : 9-5/8in Longstring Stage 2 District : Prudhoe Bay Country : USA Loadcase : 9.625 Lonstring Stage 2 BHCT Cement Slurry: o 0 c1 cH %- N- r of o N- 1 M Lo pO co _ $ 11.0 First Sack Temp. - Last Sack Temp. d CL r O (O N O _ 00 r U) L 0 10 20 30 40 50 60 70 80 90 100 110 Time (min) Page 7 q2 cemcade v31-18.2012.cfw;01-20-2012; LoadCase 9.625 Lonstring Stage 2;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Selibeller String : 9-5/8in Longstring Stage 2 District : Prudhoe Bay Country : USA Loadcase : 9.625 Lonstring Stage 2 Surface Pressure Model: O Calc.Pump Ress. -Calc.Cemi-IP O O- Co y 0 2 O O- — M O r i 0 10 20 30 40 50 60 70 80 90 100 110 Time (min) Page 8 q2 cemcade v3 1-18-2012.cfw;01-20-2012; LoadCase 9.625 Lonstring Stage 2;Version wcs-cem462_12 • Client : Repsol Well : Qugruk-2 ScMI Irger String : 9-5/8in Longstring Stage 2 District : Prudhoe Bay Country : USA Loadcase : 9.625 Lonstring Stage 2 Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 10.00 lb/gal Rheo.Model : BINGHAM Pv : 19.932 cP At temp. :80 degF Ty : 10.80 lbf/100ft2 Gel Strength :33.00 lbf/100ft2 MUD Mud Type :WBM Job volume :256.2 bbl Water Type : Fresh VOLUME FRACTION Solids : 5.0 Oil : 1.0% Water : 94.0% MUDPUSH II DESIGN Fluid No:2 Density : 10.50 lb/gal Rheo. Model : HERSCHEL_B. k :6.74E-2 Ibf.s^n/ft2 At temp. : 80 degF n :0.314 Ty :8.561bf/100ft2 Gel Strength :(lbf/100ft2) Job volume :50.0 bbl Stage 2 Tail DESIGN Fluid No:3 Density : 15.80 lb/gal Rheo. Model : HERSCHEL_B. k : 1.25E-2 Ibf.s^n/ft2 At temp. : 115 degF n :0.739 Ty :0.04Ibf/100ft2 Gel Strength :(lbf/100ft2) DESIGN BLEND SLURRY Name :G Mix Fluid : 5.103 gal/sk Job volume :58.0 bbl Dry Density : 199.77 Ib/ft3 Yield : 1.16 ft3/sk Quantity :280.19 sk Sack Weight : 94 lb Solid Fraction :41.3 BASE FLUID Type : Fresh water Density :8.32 lb/gal Base Fluid : 5.103 gal/sk Additives Code Conc. Function D046 0.2000%BWOC Antifoam D065 0.3000%BWOC Dispersant D167 0.3000%BWOC Fluid loss D153 0.2000%BWOC Antisettling Page 9 q2 cemcade v31-18-2012.cfw:01-20-2012; LoadCase 9.625 Lonstring Stage 2;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlobergcr String : 9-5/8in Longstring Stage 2 District : Prudhoe Bay Country : USA Loadcase : 9.625 Lonstring Stage 2 Stage 2 Lead DESIGN Fluid No: 5 Density : 10.70 lb/gal Rheo. Model : BINGHAM Pv :40.515 cP At temp. :76 degF Ty :44.50 Ibf/100ft2 Gel Strength : 11.16 Ibf/100ft2 DESIGN BLEND SLURRY Name :ASL(Silo13) Mix Fluid : 11.789 gal/sk Job volume : 162.0 bbl Dry Density : 111.26 lb/ft3 Yield : 2.47 ft3/sk Quantity :367.53 sk Sack Weight : 100 lb Solid Fraction : 36.3% BASE FLUID Type : Fresh water Density :8.32 lb/gal Base Fluid : 11.789 gal/sk Page 10 q2 cemcade v3 1-18-2012.cfw;01-20-2012, LoadCase 9.625 lonstring Stage 2.Version wcs-cem462_12 ALAs -Atilt\ SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMDIISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 Robert Jones Drilling Manager Repsol Alaska 2001 Timberloch Place, Suite 3000 The Woodlands, TX 77380 Re: Exploratory Field, Exploratory Pool, Qugruk #2 Repsol Alaska Permit No: 211-167 Surface Location: 1102' FWL, 1214' FNL, SEC. 25, T13N, R5E, UM Bottomhole Location: 550' FSL, 252' FWL, SEC. 24, T13N, R5E, UM Dear Mr. Jones: Enclosed is the approved application for permit to drill the above referenced exploration well. The permit is approved subject to full compliance with 20 AAC 25.055. In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name Qugruk #2 PH and API number 50-103-20649-70 from records, data and logs acquired for well Qugruk #2. 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. Sincerely, .r 1 Daniel T. Seamount, Jr. Chair DATED this day of January, 2012. cc: Department of Fish 86 Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o end. (via e-mail) R STATE OF ALASKA RECEIVED, ALASKA OIL AND GAS CONSERVATION COMMISSIONIE.( ,�I)�� / PERMIT TO DRILL 20 AAC 25.005 q f� (� ` la.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone h^IC.'gpAi1S7f42M j:C $$/en Drill 0- Redrill ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone ❑✓ CoalbedAmaase Hydrates ❑ Re-entry ❑ Exploratory D- Service- WAG ❑ Service-Disp ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket ❑✓ Single Well ❑ 11.Well Name and Number: Repsol Alaska Bond No. 22 pN 52 7/C Qugruk#2 ' 3.Address: 6.Proposed Depth: , Iz 2i•i!12.Field/Pool(s): 2001 Timberloch Place,Suite 3000,The Woodlands,Texas 77380 MD: 7,956' . TVD: 6,411' 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Exploratory Surface: 1102'FWL,1214'FNL,Sec 25,T13N,R5E,UM ' ADL 391456(Pilot),ADL 391394(Horiz S/T) Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 348'FNL,688'FWL,Sec.25,T13N,R5E,UM LAS 28269 Jan-1-2012 . Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 550'FSL,252'FWL,Sec.24,T13N,R5E,UM 1280 1102' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 38.6 feet 15.Distance to Nearest Well Open Surface: x-.360266:8-"', y- J '/ Zone-4 GL Elevation above MSL: 18 feet to Same Pool: `71L'�7 7C I d',Ili> `TC% , b <L-2(-// N/A 16.Deviated wells: Kickoff depth: NIP feet 17.Maximum Anticipated Pressures in psig(see 20 MC 25.035) Maximum Hole Angle: 0 degrees Downhole: 4000 psi - Surface: 3300 psi • 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) 48 20" 129.45# X56 N/A 80 _ 0 0 80 80 Grouted to surface wl concrete 16" 13 3/8" 68# L-80 BTC 2700 0 0 2700 2700 3222c.f.Lead,294c.f.Tail 12 1/4" 9 5/8" 47# L-80 BTC 6957 0 0 6957 6411 1780c.f.(TOC at 2900') 6 3/4" 4.5" 12.6# L-80 BTC 2556 5400 5400 7956 6411 500 c.f.of Class G 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth ND(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat Q BOP Sketch❑✓ Drilling Program Q Time v.Depth Plot Q Shallow Hazard AnalysisU Diverter Sketch❑✓ Seabed Report ❑ Drilling Fluid Program ❑✓ 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Robert Jones Title Drilling Manager Signature / f Phone (281)863-1618 Date .12/1672 // Commission Use Only Permit to Drill / / 7 API Number: / /(� /y, A.,,.- Permit ApprOv \ V See cover letter for other Number: �` / `� 50-/U J�-�aC 7 9 Z C) ` Date: 1`` requirements. Conditions of approval: If box is checked,--w�ell may not be used to explore for,test,or produce coalbed m thane,gas hydrates,or gas contained in shales: 121/ Other: X I-10O CO G eo P ./�e---- Samples req'd: Yes IE Non/ Mud log req'd: Yes I v(J.io❑ - //e/ So p 74;14;Q H2S measures: Yes❑ Nog Directional svy req'd: Yes rLJ,'No❑ - �' f'n P/ /6qr��c.rcJ. s.� APPROVED BY THE COMMISSION G DATE7lirCr ,COMMISSIONER 1-14.1nMr• ! NIA ,,, 1;(2.14, i,7,4-V t.) i . Form 10-401(Revised 7/2009) This ermit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate 1. REPJOL December 15, 2011 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission ������ 333 West 7th Ave., Suite 100 Anchorage,Alaska 99501 RE: Application for Permit to Drill: Qugruk#2 Noska Oil & Gas Cans. Commission Dear Mr. Seamount, Anchorage Repsol Alaska hereby applies for a Permit to Drill a new oil exploration well called the Qugruk #2. This well will be drilled from an ice pad located approximately 41/2 miles northeast of the Alpine Field's Fiord satellite of the Colville River Delta on the North Slope of Alaska. An ice road of approximately 25 miles will be constructed from Kuparuk 3H Pad, around the north side of the Colville Delta and down to the well site. The main objective of the well is to locate and test a suspected oil reservoir in the Nechelik interval and to evaluate the reservoir properties there. In order to accomplish this, a vertical pilot hole will be drilled through the Nechelik interval with logs and cores being obtained. The pilot hole will then be plugged back and a horizontal lateral drilled " in the Nechelik. The-horizontal hole will then be cased. fracture stimulated and tested via cased-hole DST. v L—* 51P��. �-• „p iL L� « If time remains in the drilling season, the horizontal hole will be plugged and a sidetrack drilled (under the auspices of a separate Permit to Drill). This section will be evaluating an exploration target in the Nechelik interval. In any case, it is Repsol's intent to permanently plug and abandon this well at the end of the drilling season. 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) Surface Location Plat 3) Proposed Summary Drilling Program 4) Drilling Time versus Depth Plot 5) Qugruk#2 Proposed Wellbore Diagram 6) Shallow Hazards Analysis 7) Pressure Calculations, Drilling Area Risks and Waste Disposal 8) Casing Properties and Design Factors 9) Diagrams and Descriptions of the BOP Equipment to be Used 10) Directional Drilling Program 11) Drilling Fluid Program 12) Cementing Program 1 Repsol does not anticipate the presence of H2S in any formations to be encountered in this well. However, H2S monitoring equipment will be functioning on the rig at all times during drilling and completion operations. The following are Repsol's designated contacts for reporting responsibilities to the Commission: 1) Completion Report Natasha Sachivichik, Drilling Engineer (20 AAC 25.070) (907) 343-0405 2) Geologic Data and Logs Ricard Fernandez, Operations Geologist (20 AAC 25.071) (281) 297-1058 Jesse Pantalion, Ops/Petrophysics Mgr (281) 863-1684 If you have any questions or require additional information, please contact me at (281) 863-1618 or Natasha Sachivichik at(907) 575-7156. Sincerely, ASKA Robe ones Drilling Manager enclosures cc: Natasha Sachivichik - SolstenXP 2 Qugruk - 2 E .1--(Horizontal Hole) Proposed Wellbore Diagram 20 Conductor Driven to Approx. 80' TD i��IN i.. Port Collar @ 500' ► •`iI 16" Hole ° .4 —.-- Permafrost Base @ 1,250' xt 13-3/8" Casing L- 80, 68 lbs/ft +► d TD @ 2,700' Port Collar @ 2,850' _N._ ii m ' " TOC 2,850 4 —^T iushuk 7 Top _ 3,885' 9-5/8" Casing L- 80, 47 lbs /ft ■— —. 12-1/4" Hole TD @ 6,400' TVD zbaa �,t� '1 ?,_ Kuparuk C Top 6,295' Open Hole Plug to KO.) , 4.5", 12.6 lbs /ft Liner tt*s rye �G'57 Mo r)cheiik Top -- 6.375' :; .'',Ss :.:0. , J - 2 Top 6.720 X44: .� ° .�. � . ..... ►•, 0•�•1.':'. : •A 6-3/4" Horizontal Hole (1,000') Ib IrtPul Qugruk - 2 TD Qugruk - 2 ST 1 TD 7,000' MD / 7,000' TVD 7,956' MD / 6,411 ' TVD REV 13 DEC 2011 Do O-Pc" / ! N Z cI +E l e o ry.\ 0 W • a • a Y Zw z01 µA W'!1'303'NCL _ J m til < W V ❑ F W'n'35.'NCI l n l d N ^�'Y S m O� J 7 0 I r^1 Q `!W +mN II } ��W J-� fn V co Fy Cr IpWsUNZ3 V IQ- ! , , « <dti�� Q•. QFg�Ii� O Q UZ Q ;obgZV (((''}��•s- ((( OO Y o (j,"�-{�'��, Y � o O_ E U O M a_No Q/y� J 1- aN s $ ;o,' � � v Bqq� -� d OJaI-N. > ZV &, 9 N -I i l . °iU U .� W hh ! § =O WLp < OF Q zN a ! ..° °o • 6'°a` Nam� zawF <zinwO p 4t. OI !!! 0000 V. <°°�w KWIyow 0_ : Qugruk #2 General Drilling Program 1. Ensure regulatory compliance training is complete and key personnel are fully aware of ✓ responsibilities. 2. Install 20" conductor and a cellar. 3. Diverter riser assembly should be made to length according to diverter space out schematic. 4. Conduct specific tour safety meetings with each crew on the potential of gas hydrates or shallow gas and the handling of same. �5. Pick up and stand back 2,500' of 5" drill pipe and 500' of HWDP. 6. Notify the AOGCC of intent to spud and plans to perform diverter function test and drills. •7 Lig k -s . 6,47 if 7. Ensure that pipe rams are available for the following pipe sizes: 13 3/8" casing, 9-5/8" e.) casing, 4.5" casing, 5" drill pipe, 4" drill pipe, 7" casing and 3-1/2"tubing. 8. Install 21 %" 2000 psi diverter with 16" outlet line. Fill diverter & riser with water to check for leaks. Function test and record on IADC drilling report. Send completed Diverter Test form to AOGCC as specified on the form. Hold diverter drill prior to drilling surface hole. RU cement return lines from the 4"outlets on the 20" conductor. 9. A conventional spud mud will be used on the surface hole. 10. PU 16" bottomhole assembly. Test the BHA below the rotary table. Real time LWD (GR, RES) ✓ will be utilized while drilling surface hole. 41. Spud well with reduced drilling parameters. Gradually increase drilling parameters when the BHA is below the conductor shoe. A2. Drill 16" hole vertically to 2,700' as per the directional plan and mud plan. Controlling ROP may be necessary to prevent packing off, lost circulation or flow over the top of the bell nipple. No sliding is expected in this section. • 13. Actual TD will be based on LWD data so as to place shoe in minimum 50' shale section if possible. Repsol Geologist will assist in picking casing seat. 14. Make short trips as required, circulate and condition mud and POH. Lay down the 16" BHA and download all data from MWD/LWD tools. 15. Rig up casing running equipment and Frank's top drive fill up tool. 16. Run 13 3/8", 68#, L-80, BTC casing, monitoring returns and filling casing with fill up tool.The 13 3/8" casing will be cemented using an inner-string method to ensure cement returns to surface. OLS 17. Cement 13 3/8" casing through inner-string to surface according to the cementing program. Notify AOGCC immediately if the cement did not reach surface. 18. Nipple down the diverter. . 19. Make up and install wellhead, nipple up 13 5/8" 5K BOP stack. 20. Notify AOGCC 24 hours prior to testing BOPE. Test BOPE to 250 psi low and 4,000 psi high for the rams and 2500 psi for the Annular(See Permit to Drill for reference). Note: BOP tests are required every 7 days on exploration drilling projects. 21. MU 12-1/4" BHA and test. Spud mud will be used to drillout the shoe track. Test casing to • 3,000 psig for 30 min making sure to chart the test. Drill shoe track. Switch out to inhibited water-based mud before LOT. 22. Drill 20' of new formation. 23. Perform LOT. Record the results on the Morning Report and in the IADC report. Lor7lt.sPPZ- 24. MU 12-1/4" BHA with LWD tools (GR, RES).Circulate and establish baseline parameters. 25. Drill ahead a vertical 12-1/4" pilot hole with mud motor and LWD-PWD system. 26. Slow down drilling and circulate for samples according to Repsol mud logging procedures. The wellsite geologist will assist in formation tops determination. Avoid sliding through potential reservoir sections. 27. Drill to core point, top of the Nechelik at ^'6375' MD/TVD. Repsol geologist will determine efin core point. 28. Circulate and condition mud and POOH. Prepare for coring the Nechelik. 29. MU coring BHA. Take a 240' core in the Nechelik formation. POOH with coring tools. Cut and package cores and send for the lab analysis. 30. MU and RIH with 12 %" drilling BHA and LWD. Ream through the cored hole and continue drilling to TD.The LWD logging suite will include GR, RES. !a TJ7 ' 700a' MD 31. Finish drilling the 12 %" pilot section. Allow ample rat hole to run all LWD tools through the Nechelik and J-2 formations. Back-ream and MAD pass through all pay zones. POOH BHA. 32. Prepare for Reservoir Evaluation E-line operations. 33. Perform E-line work as follows: sGR—Rt-Den-New-Dt Dipol Optional logs: Image Log—Rt scanner, NMR MDT rSWC(rotary sidewall cores) 34. After e-line work is complete, perform a wiper trip and prepare to plug back the open hole to^'5,450' MD. 35. Plug back the Q-2 pilot hole to ^'5,450 ft by setting open-hole cement plugs from TD. ' IPiw3o The top cement plug will be used as a kick-off plug for the Q-2 horizontal hole. P -fek36. MU and RIH with 121A" drilling build BHA and LWD. Use WBM to drill this section. s• 37. Initiate open-hole sidetrack off of the cement plug and gradually build a 90 deg angle into the Nechelik at a rate of"6deg/100ft. 38. Finish drilling the 12 %" build section at 9 5/8" casing point at "' 6,957'MD/ 6,411' TVD. Circulate and condition mud and POOH. C��/ /� /�kS 1;41-- 39. Run 9 5/8", 47#, L-80, BTC casing. A port�d collar will e installed in the 9 5/8" casing at 2,850' MD to circulate freeze protect fluid and for P&A purposes. 40. Cement 9 5/8" casing according to cementing procedure. Top of cement is planned at 2,850' MD/TVD. ,;et 6:4- ?� 3/y " 41. MU and RIH with(. and LWD. LWD will include GR, RES, and NMR. PrQssure test ., the 9 5/8" casing to 3,500 psi for 30 min. —k ;(( S1(4.- ' "c- '�� � ' 42. Drill out the 9 5/8" shoe and switch to OBM. //r fa IZ.Sh4- 43. Drill 1,000 ft of horizontal 6%"hole in the Nechelik formation. 44. Circulate and condition mud and POOH. c(e bNQS 45. Run and cement 4.5,�, 12.6#, 1-80 liner, set li er t packer inside the 9 5/8" casing with the top of liner at"'5,400' MD/TVD. (S60' 1 e k- La, - Q11- 46. Prepare the we I for stimulation and testing operations.0 1° p N�° / L �� e a ea' l2-Z Detailed stimulation and testing procedure with be submitted and a part of the Sundry application for those operations. Qugruk - 2 #1 (Vertical Hole) at- Proposed Wellbore Diagram -;(o 4- C 14 20" Conductor Driven to Approx. 80' TD Ki rero Port Collar @ 500' — � 9 �i' $: t. . 4 16" Hole •w -0-- Permafrost Base @ 1,250' r 13-3/8" Casing °: L- 80, 68lbs /ft MD @ 2,700' I 1 L SWC. MDT Nanushuk 7 Top 3,885' 1 I --01-- 12-1/4" Open Hole IS'.!C. MDT Kuparutis C Topp 6,295' i _ 240' Whole Core in I`?: ,hE iik '' Nechelik Top — 6,375' 1 RSWC. MDT J - 2 Top - 6,720 ,, --- -- —_ Qugruk - 2 TD 7,000' MD / 7,000' TVD REV 13 DEC 2011 1 in e � — — aQ• — — N a• U, _ G°) • ul0 07 CO yr y co yr al - .7 Csi yr M V — N U 0 4-, O �n ✓ Q CO t M co �j M }i a) CO I- N " (I, CU M u 0 V v CC Y CO LL. CU V M 0 V N -C 00 CO C 0 '-^ w = 0 N\ A ce (9) (N _u [\�1 CC 00 V N D G N N 11 co E co N 0 t O t w N C d R ( ..le — Q 0 N 4-, 0 co0 N 4-, N TS C 0. N d CO 0 n N 0 W -c c 0 00 0 CV N -.) 1 O z �F m , (0 5 2 m _. �' N. 0 a Z+`{� 0 - 110 Z c (a 00 'el U C N LO N e4l '- CO Yr a U ti t \ 0 Pi CO (0 e-I e- 0 G. O CCLOO O 0 N.- co(O al V M N • • 0 0 0 0 0 0 0 O 0 0 0 0 O N Nr- C0 CO- O CV- OM (;aa;)y;dea painseew Qugruk- 2 MAXIMUM ANTICIPATED SURFACE PRESSURES(MASP) Note: Here MASP for each hole section is determined as the lesser of 1) surface pressure at breakdown of the formation at the casing seat with a gas gradient to the surface or 2) formation pose pressure at the next casing point less a gas gradient to the surface as follows: Expected frac gradient at 13 3/8"casing shoe is 13.5 ppg, at 9 5/8"casing is 15.0 ppg. Maximum expected pore pressure at 7000' is 10.99ppg EMW. Frac gradient at the conductor shoe is 10ppg. AA-0 r`" —�Koov p,; 16" Hole Section -rv(N 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 2,700' less a gas gradient to the surface, it cannot be shut in, only diverted. Calculation: 1) ASP = ((10 X 0.052) -0.1) X 80 = 30 psi, Or 2) ASP= (2,700 ft) ((10.99 ppg x 0.052)-0.1 psi/ft) = 1273 psi 12 -1/4" Hole Section Calculation: 1)ASP = ((15 X 0.052) -0.1) X 2700 = 1836 psi, Or 2) ASP= (7,000 ft) ((10.99 ppg x 0.052)-0.1 psi/ft) = 3300 psi Bottom hole pressure is 10.99 X 0.052 X 7000' =4000 psi ./ Casing Design Verification Planned Casing Program 20" 13-3/8" 9-5/8" 4-1/2" Depth (MD) 80' 2,700' 6,957' 7,957' Depth (ND) 80' 2,700' 6,411' 6,411' Hole Size 48' 16" 12 1/4" 6 3/" Weight(ppf) 129.45 68.00 47.00 12.60 Grade X56 L-80 L-80 L-80 Connection N/A BTC BTC BTC Nominal ID(in) 18.75 12.415 8.681 4.000 The well will be drilled to a TD of 7,956' MD(6,411'TVD)to evaluate and flow test the Nechelik formation. 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 the following 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 data in the Colville River delta. 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. Maximum expected formation pressure at 7000' is 4000psi, or 10.99 ppg EMW. 13 3/8"", 68#,L-80 BTC Surface Casing: MASP at 12-1/4" hole section ND of 7,000': II , MASP= (7000)((10.99 ppg x 0.052)-0.1 psi/ft) =3,300 psi DFb= burst strength/burst stress =5,020 psi/3,300 psi =1.52 9 5/8"",47#,L-80 BTC Intermediate Casing: MASP at 8-1/2" hole section TVD of 6,411': MASP= (6,411')((10.99 ppg x 0.052)-0.1 psi/ft) =3,023 psi DFb= burst strength/burst stress =6,870 psi/3,023 psi =2.27 Collapse Requirements Use an external pressure consisting of formation pore pressure at the casing shoe and an internal pressure of a gas column to surface. 13-3/8". 68#, L-80 BTC Surface Casing: External pore pressure =10.99 x 0.052 x 2,700' =1,543 psi Internal pressure w/gas only =0.1 x 2,700' =270 psi Collapse Stress =1,543 psi—270 psi =1,273 psi DFc=collapse rating/collapse stress =2,260 psi/1273 psi =1.76 9-5/8".47#,L-80 BTC Intermediate Casing: External pore pressure =10.99 x 0.052 x 6,411' =3,664 psi Internal pressure w/gas only =0.1 x 6,411' =641 psi Collapse Stress =3,664 psi—641 psi =3,023 psi DFc=collapse rating/collapse stress =4,750 psi/3,023 psi =1.57 Tension Check Use buoyed weight of casing in mud having expected density when running the pipe. Mud weight is 9.8 ppg• 13-3/8", 68#, L-80 BTC Surface Casing: Weight in air =2,700'x 68.0 lb/ft =183,600 lbs Buoyed Weight of pipe =183,600*0.8502 =156,097 lbs DFt=(BTC tensile strength/buoyed wt) 1,545,750 lbs/156,097 lbs =9.90 Use buoyed weight of casing in mud having expected density when running the pipe. Mud weight is 10.4 ppg• 9-5/8".47#,L-80 BTC Intermediate Casing: Weight in air =6,957'x 47.0 lb/ft =326,979 lbs Buoyed Weight of pipe =326,979*0.8411 =275,022 lbs DFt=body tensile strength/buoyed wt =1,086,000 lbs/275,097 lbs =3.95 A Is 4 61 IA, i nljl o a W' z cD�I O g 41 1I ?, s CD IS E g E 11 li ww 0 F .t g 2 g g 11 a10 A u A Q in aa. N CC C co O w m ral- Q W Z > w j O o� I d& CNI Z ' s :---J • Z W U I1 I � — fi !PI]I liI!!:! 0=13======== a .,...„._,. _,...,.,:. , ._ I 1 - JLL,FW— ��i����"111 "IIIltl_II —4-1 w U / cc o n 1g • ?::le , LuJ I-- � I IIZ, O O , I I c,- go oma - w I CO I U C] z + W W F—W I- W Cr) 10 W n W U O 1. 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' 2 1 14 -"IIIIIII"t a 0 m 0 IC cl g / o4( , ss 111111 f IX __,L, kg,. poi . 9 , ,, , (ID LLJ IAN 4 V J CO '.1 iht n k C CO a - ,t n 0 R U) 1— a LJJ o � C R, a , = Qoc a k ix0 /7 . m z t p SolstenXP Qugruk Qugruk Qugruk-2 Qugruk-2_111-b- lv� Plan: Qugruk-2_1 Wp 1.0 Standard Proposal Report 03 December, 2011 ally ...�s:. .::e.:.:.......:.� HALLIBURTON Sperry Drilling Services F U) —N - N N En - - c- 8 8 8 8Oo ` —N- moo _ V O woo - co p F Li00 _—Ln n i- N Oj N1 a)O O _ V 01 1 �0p0 ... Q O J_ w00 —000 C O Q + - co O J O - Z m a o Noo co } m3 ZZ zoo - N N ON > 0 ell� U —N Y >> - Ico n 2rn 000^ O o 32 U Foo 0o _ N N 8 N j co a N J O F•j o co 0 n pp o 0.1 4 0 o ~O �00 Ln J Q Jaro0 0 co - N j vC OJ O 92 - O j"ii td N O 000 O aln o CO0 - -JJ (7 W0 N WO o0 > 07. 0 L6 N O 000 - - C')) - N 00 CUU0 co co L o - U ZN� Oc N _O Na, V1 - N _ I+O- —N V _ N C_ Zo +0 O - o C) —u) 0) _ 0) - O O = o - O 0 0 ✓ CO —n N 0 - d 0 F h. O N - l6 ✓ - 0 -.q( o CU co' . h Q U in F I._ , i-2 - N N. 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I N (ui/n 096) 4ida4 X63 JGA°MJI Sperry Drilling HALLIBURTON Standard Proposal Report Database: .Sperry EDM.16 PRD Local Co-ordinate Reference: Well Qugruk-2 Company: Solsten ND Reference: Assumed 30'KB @ 30.00ft Project: Qugruk MD Reference: Assumed 30'KB @ 30.00ft Site: Qugruk North Reference: True Well: Qugruk-2 Survey Calculation Method: Minimum Curvature Wellbore: Qugruk-2_1 Design: Qugruk-2_1 Wp 1.0 Project Qugruk Map System: Universal Transverse Mercator System Datum: Mean Sea Level Geo Datum: NAD 1927-Alaska Using Well Reference Point Map Zone: Zone 06N(150 W to 144 W) Using geodetic scale factor Site Qugruk Site Position: Northing: 25,658,826.64 ft Latitude: 70°27'20.583 N From: Map Easting: 1,181,975.98 ft Longitude: 150°44'39.946 W Position Uncertainty: 0.00 ft Slot Radius: " Grid Convergence: -3.53 ° Well Qugruk-2 Well Position +N/-S 0.00 ft Northing: 25,658,826.64 ft Latitude: 70°27'20.583 N +E/-W 0.00 ft Easting: 1,181,975.98 ft Longitude: 150°44'39.946 W Position Uncertainty 0.00 ft Wellhead Elevation: ft Ground Level: 5.00 ft Wellbore Qugruk-2_1 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (1 (°) (nT) BGGM2011 12/3/2011 20.39 80.91 57,622 Design Qugruk-2_1 Wp 1.0 Audit Notes: Version: Phase: PLAN Tie On Depth: 30.00 Vertical Section: Depth From(ND) +N/-5 +E/-W Direction (ft) (ft) (It) (1 30.00 0.00 0.00 0.00 Plan Sections Measured Vertical ND Dogleg Build Turn Depth Inclination Azimuth Depth System +N/-S +E/-W Rate Rate Rate Tool Face (ft) (°) (1 (ft) ft (ft) (ft) (°/100ft) (1100ft) (°/100ft) (^) 30.00 0.00 0.00 30.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 • 7,030.00 0.00 0.00 7,030.00 7,000.00 0.00 0.00 0.00 0.00 0.00 0.00 12/3/2011 2.-30:23PM Page 2 COMPASS 2003 16 Build 73 Sperry Drilling HALLIBURTON Standard Proposal Report Database: .Sperry EDM.16 PRD Local Co-ordinate Reference: Well Qugruk-2 Company: Solsten TVD Reference: Assumed 30'KB @ 30.00ft Project: Qugruk MD Reference: Assumed 30'KB @ 30.00ft Site: Qugruk North Reference: True Well: Qugruk-2 Survey Calculation Method: Minimum Curvature Wellbore: Qugruk-2_1 Design: Qugruk-2_1 Wp 1.0 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting OLS Vert Section (ft) (°) (`) (ft) ft (ft) (ft) (ft) (ft) 0.00 30.00 0,00 0.00 30.00 0.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 80.00 0.00 0.00 80.00 50.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 20" 100.00 0.00 0.00 100.00 70.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 200.00 0.00 0.00 200.00 170.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 300.00 0.00 0.00 300.00 270.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 400.00 0.00 0.00 400.00 370.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 500.00 0.00 0.00 500.00 470.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 600.00 0.00 0.00 600.00 570.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 700.00 0.00 0.00 700.00 670.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 800.00 0.00 0.00 800.00 770.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 900.00 0.00 0.00 900.00 870.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,000.00 0.00 0.00 1,000.00 970.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,100.00 0.00 0.00 1,100.00 1,070.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,200.00 0.00 0.00 1,200.00 1,170.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,280.00 0.00 0.00 1,280.00 1,250.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 BPRF 1,300.00 0.00 0.00 1,300.00 1,270.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,400.00 0.00 0.00 1,400.00 1,370.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,500.00 0.00 0.00 1,500.00 1,470.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,600.00 0.00 0.00 1,600.00 1,570.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,700.00 0.00 0.00 1,700.00 1,670.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,800.00 0.00 0.00 1,800.00 1,770.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 1,900.00 0.00 0.00 1,900.00 1,870.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 2,000.00 0.00 0.00 2,000.00 1,970.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 2,100.00 0.00 0.00 2,100.00 2,070.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 2,200.00 0.00 0.00 2,200.00 2,170.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 2,300.00 0.00 0.00 2,300.00 2,270.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 2,400.00 0.00 0.00 2,400.00 2,370.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 2,500.00 0.00 0.00 2,500.00 2,470.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 2,600.00 0.00 0.00 2,600.00 2,570.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 2,700.00 0.00 0.00 2,700.00 2,670.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 13 3/8" 2,800.00 0.00 0.00 2,800.00 2,770.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 2,900.00 0.00 0.00 2,900.00 2,870.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,000.00 0.00 0.00 3,000.00 2,970.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,100.00 0.00 0.00 3,100.00 3,070.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,200.00 0.00 0.00 3,200.00 3,170.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,300.00 0.00 0.00 3,300.00 3,270.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,400.00 0.00 0.00 3,400.00 3,370.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,500.00 0.00 0.00 3,500.00 3,470.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,600.00 0.00 0.00 3,600.00 3,570.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,700.00 0.00 0.00 3,700.00 3,670.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,800.00 0.00 0.00 3,800.00 3,770.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 3,900.00 0.00 0.00 3,900.00 3,870.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 12/3/2011 230:23PM Page 3 COMPASS 2003 16 Build 73 Sperry Drilling HALLS B U RTO Standard Proposal Report Database: Sperry EDM.16 PRD Local Co-ordinate Reference: Well Qugruk-2 Company: Solsten TVD Reference: Assumed 30'KB @ 30.00ft Project: Qugruk MD Reference: Assumed 30'KB @ 30.00ft Site: Qugruk North Reference: True Well: Qugruk-2 Survey Calculation Method: Minimum Curvature Wellbore: Qugruk-2_1 Design: Qugruk-2_1 Wp 1.0 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (ft) l°) (°) (ft) ft (ft) (ft) (ft) (ft) 3,885.00 3,915.00 0.00 0.00 3,915.00 3,885.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 Nanushuk 7 Top 4,000.00 0.00 0.00 4,000.00 3,970.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 4,100.00 0.00 0.00 4,100.00 4,070.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 4,200.00 0.00 0.00 4,200.00 4,170.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 4,300.00 0.00 0.00 4,300.00 4,270.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 4,400.00 0.00 0.00 4,400.00 4,370.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 4,500.00 0.00 0.00 4,500.00 4,470.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 4,600.00 0.00 0.00 4,600.00 4,570.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 4,700.00 0.00 0.00 4,700.00 4,670.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 4,800.00 0.00 0.00 4,800.00 4,770.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 4,900.00 0.00 0.00 4,900.00 4,870.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,000.00 0.00 0.00 5,000.00 4,970.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,100.00 0.00 0.00 5,100.00 5,070.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,200.00 0.00 0.00 5,200.00 5,170.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,300.00 0.00 0.00 5,300.00 5,270.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,400.00 0.00 0.00 5,400.00 5,370.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,500.00 0.00 0.00 5,500.00 5,470.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,600.00 0.00 0.00 5,600.00 5,570.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,700.00 0.00 0.00 5,700.00 5,670.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,800.00 0.00 0.00 5,800.00 5,770.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 5,900.00 0.00 0.00 5,900.00 5,870.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,000.00 0.00 0.00 6,000.00 5,970.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,100.00 0.00 0.00 6,100.00 6,070.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,200.00 0.00 0.00 6,200.00 6,170.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,300.00 0.00 0.00 6,300.00 6,270.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,325.00 0.00 0.00 6,325.00 6,295.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 Kuparuk C Top 6,400.00 0.00 0.00 6,400.00 6,370.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,405.00 0.00 0.00 6,405.00 6,375.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 Nechelik Top 6,500.00 0.00 0.00 6,500.00 6,470.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,600.00 0.00 0.00 6,600.00 6,570.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,700.00 0.00 0.00 6,700.00 6,670.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,750.00 0.00 0.00 6,750.00 6,720.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 J-2 Top 6,800.00 0.00 0.00 6,800.00 6,770.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 6,900.00 0.00 0.00 6,900.00 6,870.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 7,000.00 0.00 0.00 7,000.00 6,970.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 121/4 OH 7,030.00 0.00 0.00 7,030.00 7,000.00 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 TD at 7030.00'MD 12/3/2011 2:30:23PM Page 4 COMPASS 2003.16 Build 73 Sperry Drilling HALLI BU RTDN Standard Proposal Report Database: .Sperry EDM.16 PRD Local Co-ordinate Reference: Well Qugruk-2 Company: Solsten TVD Reference: Assumed 30'KB @ 30.00ft Project: Qugruk MD Reference: Assumed 30'KB @ 30.00ft Site: Qugruk North Reference: True Well: Qugruk-2 Survey Calculation Method: Minimum Curvature Wellbore: Qugruk-2_1 Design: Qugruk-2_1 Wp 1.0 Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) Name (") (") 7,000.00 7,000.00 12 1/4 OH 12-1/4 12-1/4 80.00 80.00 20" 20 26 2,700.00 2,700.00 13 3/8" 13-3/8 16 ---_..--------- Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (ft) (ft) ft Name Lithology (0) (") 3,915.00 3,915.00 Nanushuk 7 Top 0.00 1,280.00 1,280.00 B P R F 0.00 6,405.00 6,405.00 Nechelik Top 0.00 6,325.00 6,325.00 Kuparuk C Top 0.00 6,750.00 6,750.00 J-2 Top 0.00 ...--------._-- Plan Annotations Measured Vertical Local Coordinates Depth Depth +NI-S +E/-W (ft) (ft) (ft) (ft) Comment 7,030.00 7,030.00 0.00 0.00 TD at 7030.00'MD 12/3/2011 2-30:23PM Page 5 COMPASS 2003.16 Build 73 SolstenXP Qugruk Qugruk Qugruk-2 Qugruk-211(Horizontal Hole ) Plan: Qugruk-2_1 ST 1 Wp 1.0 ( Horizontal Hole ) Standard Proposal Report 03 December, 2011 ■ � iM1111111110 HALLIBURTON moimmi mom wassommem Sperry Drilling Services r o - 11 c o N z U (n N m f� 0 F- �I d ; `m'2 0 m, w= u co - -o U �Um Nf--- E m >`� o0o COrn o co GNU rgm 'w Z ,°I 03 N C m0M I- N'c 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Universal Transverse Mercator System Datum: Mean Sea Level Geo Datum: NAD 1927-Alaska Using Well Reference Point Map Zone: Zone 06N(150 W to 144W) Using geodetic scale factor Site Qugruk Site Position: Northing: 25,658,826.64ft Latitude: 70°27'20.583 N From: Map Easting: 1,181,975.98 ft Longitude: 150°44'39.946 W Position Uncertainty: 0.00 ft Slot Radius: " Grid Convergence: -3.53 ° Well Qugruk-2 Well Position +N/-S 0.00 ft Northing: 25,658,826.64 ft Latitude: 70°27'20.583 N +EI-W 0.00 ft Easting: 1,181,975.98 ft Longitude: 150°44'39.946 W Position Uncertainty 0.00 ft Wellhead Elevation: ft Ground Level: 5.00 ft Wellbore Qugruk-2_1 ST 1 (Horizontal Hole) Magnetics Model Name Sample Date Declination Dip Angle Field Strength l°) (°) (nT) BGGM2011 12/3/2011 20.39 80.91 57,622 Design Qugruk-2_1 ST 1 Wp 1.0(Horizontal Hole) Audit Notes: Version: Phase: PLAN Tie On Depth: 5,454.30 Vertical Section: Depth From(TVD) +N/-S +EI-W Direction (ft) (ft) (ft) r) 30.00 0.00 0.00 334.29 Plan Sections Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +N/-S +E/-W Rate Rate Rate Tool Face (ft) (°) (°) (ft) ft (ft) (ft) (°/100ft) (°/100ft) (°/100ft) (°) 5,454.30 0.00 0.00 5,454.30 5,424.30 0.00 0.00 0.00 0.00 0.00 0.00 6,957.05 90.00 334.30 6,411.00 6,381.00 862.07 -414.80 5.99 5.99 -1.71 334.30 6,957.38 90.00 334.29 6,411.00 6,381.00 862.36 -414.94 6.00 0.49 -5.98 -85.29 7,956.38 90.00 334.29 6,411.00 6,381.00 1,762.43 -848.41 0.00 0.00 0.00 0.00 12/3/2011 2.53:O6PM Page 2 COMPASS 2003.16 Build 73 Sperry Drilling HALLI B U RTO N Standard Proposal Report Database: .Sperry EDM.16 PRD Local Co-ordinate Reference: Well Qugruk-2 Company: Solsten TVD Reference: Assumed 30'KB @ 30.00ft Project: Qugruk MD Reference: Assumed 30'KB @ 30.00ft Site: Qugruk North Reference: True Well: Qugruk-2 Survey Calculation Method: Minimum Curvature Wellbore: Qugruk-2_1 ST 1 (Horizontal Hole) Design: Qugruk-2_1 ST 1 Wp 1.0(Horizontal Hole) Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +NI-S +E/-W Northing Easting DLS Vert Section (ft) (°) 11 (ft) ft (ft) (ft) (ft) (ft) 6,424.30 5,454.30 0.00 0.00 5,454.30 5,424.30 0.00 0.00 25,658,826.64 1,181,975.98 0.00 0.00 KOP Cement Plug Start DLS 6.00 6464.30'MD 5,500.00 2.74 334.30 5,499.98 5,469.98 0.98 -0.47 25,658,827.65 1,181,975.57 5.99 1.09 5,600.00 8.73 334.30 5,599.44 5,569.44 9.98 -4.80 25,658,836.89 1,181,971.81 5.99 11.07 5,700.00 14.71 334.30 5,697.31 5,667.31 28.27 -13.60 25,658,855.69 1,181,964.15 5.99 31.38 5,800.00 20.70 334.30 5,792.53 5,762.53 55.67 -26.79 25,658,883.84 1,181,952.68 5.99 61.78 5,900.00 26.69 334.30 5,884.05 5,854.05 91.87 -44.21 25,658,921.04 1,181,937.52 5.99 101.96 6,000.00 32.68 334.30 5,970.89 5,940.89 136.48 -65.67 25,658,966.88 1,181,918.85 5.99 151.46 6,100.00 38.67 334.30 6,052.08 6,022.08 189.01 -90.95 25,659,020.85 1,181,896.86 5.99 209.75 6,200.00 44.66 334.30 6,126.75 6,096.75 248.89 -119.76 25,659,082.38 1,181,871.79 5.99 276.20 6,300.00 50.65 334.30 6,194.08 6,164.08 315.46 -151.79 25,659,150.78 1,181,843.92 5.99 350.07 6,400.00 56.64 334.30 6,253.34 6,223.34 387.99 -186.69 25,659,225.32 1,181,813.56 5.99 430.57 6,500.00 62.63 334.30 6,303.87 6,273.87 465.70 -224.08 25,659,305.17 1,181,781.02 5.99 516.81 6,600.00 68.61 334.30 6,345.13 6,315.13 547.74 -263.56 25,659,389.47 1,181,746.68 5.99 607.85 6,700.00 74.60 334.30 6,376.67 6,346.67 633.21 -304.68 25,659,477.30 1,181,710.90 5.99 702.70 6,800.00 80.59 334.30 6,398.13 6,368.13 721.18 -347.01 25,659,567.69 1,181,674.07 5.99 800.32 6,900.00 86.58 334.30 6,409.30 6,379.30 810.69 -390.08 25,659,659.66 1,181,636.60 5.99 899.65 6,957.05 90.00 334.30 6,411.00 6,381.00 862.07 -414.80 25,659,712.46 1,181,615.09 5.99 956.67 9 6/8"-Qugruk-2_1 ST 1 T1 6,957.38 90.00 334.29 6,411.00 6,381.00 862,36 -414.94 25,659,712.76 1,181,614.97 6.01 957.00 End Directional 6957.38'MD 7,000.00 90.00 334.29 6,411.00 6,381.00 900.76 -433.44 25,659,752.22 1,181,598.88 0.00 999.62 7,100.00 90.00 334.29 6,411.00 6,381.00 990.86 -476.83 25,659,844.80 1,181,561.12 0.00 1,099.62 7,200.00 90.00 334.29 6,411.00 6,381.00 1,080.95 -520.22 25,659,937.38 1,181,523.37 0.00 1,199.62 7,300.00 90.00 334.29 6,411.00 6,381.00 1,171.05 -563.60 25,660,029.96 1,181,485.61 0.00 1,299.62 7,400.00 90.00 334.29 6,411.00 6,381.00 1,261.15 -606.99 25,660,122.55 1,181,447.86 0.00 1,399.62 7,500.00 90.00 334.29 6,411.00 6,381.00 1,351.24 -650.38 25,660,215.13 1,181,410.10 0.00 1,499.62 7,600.00 90.00 334.29 6,411.00 6,381.00 1,441.34 -693.77 25,660,307.71 1,181,372.35 0.00 1,599.62 7,700.00 90.00 334.29 6,411.00 6,381.00 1,531.44 -737.16 25,660,400.29 1,181,334.59 0.00 1,699.62 7,800.00 90.00 334.29 6,411.00 6,381,00 1,621.53 -780.55 25,660,492.87 1,181,296.84 0.00 1,799.62 7,900.00 90.00 334.29 6,411.00 6,381.00 1,711.63 -823.94 25,660,585.45 1,181,259.08 0.00 1,899.62 7,956.00 90.00 334.29 6,411.00 6,381.00 1,762.08 -848.24 25,660,637.30 1,181,237.94 0.00 1,955.62 TD at 7966.38'MD 7,956.38 90.00 334.29 6,411.00 6,381.00 1,762.43 , -848.40 25,660,637.65 1,181,237.80 0.00 1,956.00 7"-Qugruk-2_1 ST 1 T2 12/3/2011 2:53 O6PM Page 3 COMPASS 2003 16 Build 73 Sperry Drilling HALLIBLIRTON Standard Proposal Report Database: .Sperry EDM.16 PRD Local Co-ordinate Reference: Well Qugruk-2 Company: Solsten TVD Reference: Assumed 30'KB @ 30.00ft Project: Qugruk MD Reference: Assumed 30'KB @ 30.00ft Site: Qugruk North Reference: True Well: Qugruk-2 Survey Calculation Method: Minimum Curvature Wellbore: Qugruk-2_1 ST 1 (Horizontal Hole) Design: Qugruk-2_1 ST 1 Wp 1.0(Horizontal Hole) Targets Target Name -hit/miss target Dip Angle Dip Dir. TVD +N/-S +E/-W Northing Easting -Shape (°) (°) (ft) (ft) (ft) (ft) (ft) Qugruk-2_1 ST 1 T2 0.00 0.00 6,411.00 1,762.43 -848.41 25,660,637.66 1,181,237.79 -plan hits target center -Point Qugruk-2_1 ST 1 T1 0.00 0.00 6,411.00 862.07 -414.80 25,659,712.46 1,181,615.09 -plan hits target center -Point Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) Name (") C') 80.00 80.00 20" 20 26 6,957.05 6,411.00 9 5/8" 9-5/8 12-1/4 2,700.00 2,700.00 13 3/8" 13-3/8 16 7,956.38 6,411.00 7" 7 8-1/2 Plan Annotations Measured Vertical Local Coordinates Depth Depth +N/-S +E/-W (ft) (ft) (ft) (ft) Comment 5,454.30 5,454.30 0.00 0.00 KOP Cement Plug Start DLS 6.00 5454.30'MD 6,957.38 6,411.00 862.36 -414.94 End Directional 6957.38'MD 7,956.00 6,411.00 1,762.08 -848.24 TD at 7956.38'MD 12/3/2011 2.53:06PM Page 4 COMPASS 2003.16 Build 73 Qugruk#2 Proposed Drilling Fluids Program 16"Surface Hole, 0'to 2,700'MD/2,700'TVD Surface interval Drilling Fluid System Spud Mud Key Products MI Gel,GELEX,Caustic,MI WATE(Bente),PolyPac UL,DRILLZONE,SCREENKLEEN, Solids Control Shakers,Mud Cleaner,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. To help ensure good cement to surface after running the casing,and if practical,condition mud _to a funnel viscosity of-55-100 sec/qt prior to cementing the casing. INTERVAL MUD PROPERTIES Final Value Mud Pro.ert initial Value TO Density(ppg) 9.0 9.5-9.6 Yield Point(cP) 50-70 45-60 PV(lb/100 sf) 20-45 20-30 pH 9.0-9.5 9.0-9.5 API Filtrate(cc) NC-8 <8 Solids(%) ±9% ±9% Recommended Initial Spud Mud Formulation Soda Ash 0.2 ppb MI Gel 25 ppb(Add to the make-up water and allow to hydrate as long as is possible) GELEX Add prior to spud to increase the funnel viscosity to 250-300 seciquart. MI WATE(Barite) For weight as needed Caustic Soda 0.02 ppb PolyPac UL 0.25 ppb 12 1/4"and 8 1/2"Holes ,from 2,700'to 7,956'MD/6,411'TVD Production Interval 1 Drilling Fluid System VersaPro NT Key Products LVT-200, IMG 400, Lime,VERSACOAT HF,VERSAWET,VERSAMOD, VERsAHRP, Brine(10.6 ppg CaCl2),MI WATE(Barite) Solids Control Shakers,Mud cleaner,Centrifuge Lithologic instability near the wellbore. Potential Problems Lost Circulation Hole cleaning. Production Interval Drill-in Fluid Properties Properties Initial Value Density(ppg) 9.8 nod-Initial Make-Up Weight 10.5 ppg-final Weight Funnel Viscosity(seconds) 35-45 Yield Point(cP) 15-28 Plastic Viscosity(lb/100 sf) 15-25 Oil:Water 70 :30 Electrical Stability(mlVolts) 650-900 HTHP Fluid Loss(m1130 min/200 psi/150°F) <4 Qugruk # 2 Cementing Program 13 3/8"Surface Casing,0'to 2,700'MD/TVD Casing Length:2700' Casing Type:13 3/8",68#,L-80,BTC Mud Type:9.6 ppg Water-based spud mud Open hole:16" Cement Volume excess:250%on Lead,40%on Tail Density TOC PV YP Pump Time Setting Time Final Volume Compr S /0( Strenqh Permafrost Cement 10.7 ppg Surface 35 25 2-4 hr 24hr 200psi 3222 cf Irl. 2.447 Class G Cement 15.8 ppg 2200' 56 28 2-4 hr 24 hr 3000 psi 294 cf 3/v Spacer(for WBM) 10.0 ppg 25 23 300 cf 9 5/8"Intermediate Casing 0'to 6,957'MD/6,411'TVD Casing Length:6,957' Casing Type:9 5/8",47#,L-80,BTC P1 K r Mud Type: 10.5 ppg WBM //l, �Q Open hole:12 1/4" �V C - Cement Volume excess:40% 1-✓`-' 64 '4 " Density/ TOC PV YP Pump Time Setting Time Final Volume Compr Strengh / Class G Tail slurry 12.8 pp. 2911' _ - : - :- 4 1: . = 3 cf Class G Tail slurry 15.8 ppg 6457' 48 28 5-6 hr 12-24 hr 3000 psi 330 cf Spacer(for WBM) 11.5 ppg 25 23 100 cf /qGb S r c 4/4 `Px 4 1/2"Production Casing 5400'to 7,957'MD/6,411'TVD Casing Length:7,957' Casing Type:4.5",12.64,L-80,BTC Mud Type: 10.5 ppg OBM �. Open hole:6 3/4" Ci �,^ fc- Cement Volume excess:40% 402(°p Density TOC PV YP Pump Time Setting Time Final 1 Volume Compr Strenqh Class G Tail slurry 15.8 ppg 5400' 48 31 5-6 hr 12-24 hr 3000 psi 500 cf Spacer(for WBM) 11.5 ppg 25 23 100 cf CeCADE rwell cementing recommendation for Surface Casing- Primary Operator : Repsol(Solsten XP) Well : Qugruk-2 Country : USA State : Alaska Prepared for : Natasha Sachivichik Proposal No. : v1 Service Point : Prudhoe Bay Date Prepared : 12/22/2011 Business Phone : (907)659 2434 Prepared by : Stephen Lauper Phone : (907)273-1765 E-Mail Address : slauper@slb.com n c <L -9zIJATE Disclaimer Notice: Schlumberger submits this document with the benefit of its judgment,experience,and good oilfield practices. This information is provided in accordance wah generally accepted industry practice,retying on fads or information provided by others,limitations,computer models,measurements,assumptions and inferences that are not infallible. Calculations are estimates based on provided information.All proposals,recommendations,or predictions are opinions only. NO WARRANTY IS GNEN CONCERNING ACCURACY OR COMPLETENESS OF DATA,INFORMATION PRESENTED,EFFECTIVENESS OF MATERIAL,PRODUCTS OR SUPPLIES.RECOMMENDATIONS MADE,OR RESULTS OF THE SERVICES RENDERED. Freedom from infringement of any intellectual property rights of Schlumberger or others is not to be inferred and no intellectual property rights are granted hereby. is "Mark of Schlumberger Client : Repsol Well : Qugruk-2 Schlumberger String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Section 1 : well description Configuration : Stab In Stage : Single Rig Type : Land Mud Line : 0.0 ft Total MD : 2700.0 ft BHST : 74 degF Bit Size : 16 in ft (x 1000) psi o ( ) LC Frac — — Pore 1-4 O— • • i • O i — Well Lithology Formation Press. Page 2 02 CemCADE.clw:12-22-2011; LoadCase Surface Casing-Primary:Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Silmierger String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Previous String MD OD Weight ID (ft) (in) (lb/ft) (in) 80.0 20 106.5 19.000 Drill Pipe MD OD Weight ID Grade Collapse Burst (ft) (in) (lb/ft) (in) (psi) (psi) 2620.0 5 19.5 4.276 E-75 9960 9500 Stab In Collar MD : 2620.0 ft Casing/liner Shoe MD : 2700.0 ft Casing/Liner MD OD Joint Weight ID Grade Collapse Burst Thread (ft) (in) (ft) (lb/ft) (in) (psi) (psi) 2700.0 13 3/8 40.0 68.0 12.415 L-80 2270 5020 BTC Mean OH Diameter : 16.000 in Mean Annular Excess : 133.8 % Mean OH Equivalent Diameter: 18.951 in Total OH Volume : 914.1 bbl (including excess) Caliper and Hole Size Data MD Caliper Excess Equiv.Diam. (ft) (in) (%) (in) 1250.0 16.000 250.0 21.184 2700.0 16.000 40.0 16.936 The Well is considered VERTICAL Formation Data MD Frac. Pore Name Lithology (ft) (lb/gal) (lb/gal) 2700.0 14.20 8.60 Geothermal Temperature Profile MD TVD Temperature Gradient (ft) (ft) (degF) (degF/100ft) 0.0 0.0 15 0.0 1800.0 1800.0 32 0.9 2700.0 2700.0 74 2.2 Page 3 02 CemCADE.cfw;12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Section 2: fluid sequence Job Objectives: Stab in Job: Cement to Surface(Port Collar @ 500-ft MD for possible secondary job); If cement returns not seen at surface,open port collar and circulate Original fluid Mud 10.20 lb/gal k: 1.56E-2 Ibf.s^n/ft2 n : 0.487 Ty:4.95 Ibf/100ft2 Displacement Volume 46.5 bbl Drill Pipe Volume 46.5 bbl Total Volume 606.5 bbl TOC 0.0 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) MUDPUSH II 75.0 0.0 10.60 Pv:21.444 cP Ty:26.19 Ibf/100ft2 Surface Lead 420.5 2200.0 10.70 k:2.26E-1 Ibf.s^n/ft2 n:0.264 Ty:0.59 lbf/100ft2 Surface Tail 64.4 500.0 2200.0 15.80 k:1.07E-2 Ibf.s^n/ft2 n:0.704 Ty:17.03 Ibf/100ft2 Mud 46.5 0.0 10.20 k:1.56E-2 lbf.s^n/ft2 n:0.487 Ty:4.95 lbf/100ft2 Static Security Checks: Frac 15 psi at 80.0 ft Pore 9 psi at 80.0 ft Collapse 1991 psi at 2620.0 ft Burst 5020 psi at 0.0 ft Csg.Pump out 65 ton Check Valve Diff Press 179 psi ft (x 1000) psi .=.-� ��iL ) 0 2.5 -Hydrostatic I-Frac -Pore 5: •O O O- O O O- N O O O M- Fluid Sequence Static Well Security Page 4 02 CemCADE.cfw;12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Sc�l �rger String Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 10.20 lb/gal Rheo. Model : HERSCHEL_B. k : 1.56E-2 Ibf.s^n/ft2 At temp. :80 degF n :0.487 Ty :4.951bf/100ft2 Gel Strength :23.00 lbf/100ft2 MUD Mud Type :WBM Job volume :46.5 bbl Water Type : Fresh VOLUME FRACTION Solids : 5.0 Oil : 1.0% Water : 94.0% MUDPUSH II DESIGN Fluid No:2 Density : 10.60 lb/gal Rheo. Model : BINGHAM Pv :21.444 cP At temp. :80 degF Ty :26.19 Ibf/100ft2 Gel Strength :(Ibf/100ft2) Job volume : 75.0 bbl Surface Lead DESIGN Fluid No:3 Density : 10.70 lb/gal Rheo. Model : HERSCHEL_B. k :2.26E-1 Ibf.s^n/ft2 At temp. : 70 degF n :0.264 Ty :0.591bf/100ft2 Gel Strength : 12.23 Ibf/100ft2 DESIGN BLEND SLURRY Name :ASL(0.82) Mix Fluid : 11.724 gal/sk Job volume :420.5 bbl Dry Density : 111.02 lb/ft3 Yield :2.47 ft3/sk Quantity :956.67 sk Sack Weight : 100 lb Solid Fraction :36.5% BASE FLUID Type : Fresh water Density :8.32 lb/gal Base Fluid : 11.724 gal/sk Thickening Time: 114 min Pump Time+ 120min Safety=3:54 hr:mn MINIMUM Page 5 02 CemCADE.cfw;12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Surface Tail DESIGN Fluid No:4 Density : 15.80 lb/gal Rheo. Model : HERSCHEL_B. k : 1.07E-2 Ibf.s^n/ft2 At temp. :80 degF n :0.704 Ty : 17.03 lbf/100ft2 Gel Strength :(Ibf/100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.105 gal/sk Job volume : 64.4 bbl Dry Density : 199.77 lb/ft3 Yield : 1.16 ft3/sk Quantity : 310.74 sk Sack Weight : 94 lb Solid Fraction :41.4% 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 0.250%BWOC Fluid loss S002 0.400%BWOC Accelerator Thickening Time:36min Pump Time+ 120min Safety=2:36 hr:mn MINIMUM(Request 3:00 Minimum) Page 6 02 CemCADE.cfw;12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 SGhIohrger String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Section 4: pumping schedule Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 6.0 75.0 12.5 75.0 80 Mix/Pump Spacer Pause 0.0 0.0 10.0 0.0 80 Drop Bottom Plug Surface Lead 6.0 420.5 70.1 420.5 80 Mix/Pump Lead Cement Pause 0.0 0.0 5.0 0.0 80 End Tail/Start Batch first tub of Tail Surface Tail 6.0 64.4 10.7 64.4 80 Mix/Pump Tail Cement Pause 0.0 0.0 10.0 0.0 80 Drop Top Plug Mud 6.0 41.5 6.9 41.5 80 Start Displacement Mud 2.0 5.0 2.5 46.5 80 Slow rate for Plug Bump Total 02:07 606.5 bbl hr:mn Dynamic Security Checks: Frac 13 psi at 80.0 ft Pore 7 psi at 80.0 ft Collapse 1899 psi at 2620.0 ft Burst 5013 psi at 2620.0 ft Temperature Results BHCT 77 degF Simulated Max HCT 80 degF Simulated BHCT 80 degF Max HCT Depth 2700.0 ft CT at TOC 64 degF Max HCT Time 02:04:03 hr:mn:sc Static temperatures: At Time (hr:mn) 1 (hr:mn) Geo.Temp. Top of Cement (degF) (degF) 1 15 degF Bottom Hole (degF) (degF) 74 degF Page 7 02 CemCADE.cfw;12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 ScIIlberger String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Expected ECDs while Pumping i DepthLo_ = 2700 ft — Frac 1 1 ( I f 1 I 1 `I 1 1 +!, 1 I I ! 1 Fore _ ,=... Hydrostatic _ DyalL ° 1 RI - ___- _._ ___..__.....__---.. N c N N m C (o U c as O . i 1 aT W I I co- r r 1 I r 1 0 20 40 60 80 100 120 140 Time(min) Page 8 02 CemCADE.crw;12-22-2011; LoadCase Surface Casing Ptimary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String Surface Casing-Primary District : Prudhoe Bay Country USA Loadcase : Surface Casing-Primary Expected Pressures while Pumping 0 CD — Calc.Pump Ress. —Calc.CemHP O O- --- — LO ii T .N• 1 i00000000 ...... ......••••••1 ao I coCL ---_,7 I O CV ,— ' ' – ' II 1 i ..... _— _Li_ 0 20 40 60 80 100 120 140 Time(min) Page 9 02 CemCADE.cfw;12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schl !Argcr String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Expected Differential Pressure at the shoe at Plug Bump 1 o Depth= 2620 ft N1=1. tido Hydrostatic Lo :N e— I 1♦ — I ' at - 2 i - -----r- 1.111_11111 _� I MN .�,_... 0 Lo .. Lr) 1111P0' t, ..... O 0 20 40 60 80 100 120 140 Time(min) Page 10 02 CemCADE.cfw:12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Expected Cement Temperatures up to 24hrs after Placement - First Sack Temp. l - Last Sack Temp. o I11III -O c°- \ o _____ ____._..�..__.._.___ _- _�n_ ____...._____.__ _____._..___. _ ._ _o LI- ~ N r3) a) -o __.___-___-_____ __ -__-_--_-___ ____ o o -c Fp- _ M N a) Ci o I f 0 a o }-- �o Ln- --------- _— v 1 o S oi o Ce) r _ _ ) CD 0 250 500 750 1000 1250 1500 1750 Time(min) Page 11 02 CemCADE.cfw;12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Section 5: centralizer placement Top of centralization :0.0 ft Bottom Cent. MD :2680.0 ft Casing Shoe :2700.0 ft NB of Cent. Used :19 NB of Floating Cent. :2 Centralizer Placement Bottom MD Nbr. Cent./ Cent. Name Code Min. STO @ Depth (ft) Joint (%) (ft) 460.0 0 0/0 100.0 240.0 540.0 2 1/1 NW-ST-13 3/8-8-ST A3B W131 100.0 520.0 2020.0 0 0/0 100.0 1280.0 2700.0 17 1/1 NW-ST-13 3/8-8-ST A3B W131 100.0 2700.0 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) (lbf) (lbf) NW-ST-13 3/8-8-ST W131 13 3/8 18.386 14.685 No Hannover 16.000 1225.21 2996.70 A3B ft % 51 100 125 150 Between Cent. At Cent. ' ' --! . . I I o i 0 o— — I o 1 , 1 o— cv 0 0 Pipe Standoff Page 12 02 CemCADEcfw;12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary Section 6: WELLCLEAN II Simulator ft % % 40 60 80 100 0 50 100 co_ E� h —Std Betw.Cent. /Aid Contamination — Cement Coverage — Uncontaminated Slurry 0 O O- 0 C— N 0 O O co— Fluid Sequence Cement Coverage Uncontaminated Slurry Page 13 02 CemCADE ciw;12-22-2011; LoadCase Surface Casing-Primary;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlabergcr String : Surface Casing-Primary District : Prudhoe Bay Country : USA Loadcase : Surface Casing-Primary FIi.Caraerkebono Pak MW an Ole WN z z 0 1 I 0 0 0 500— —500 500 500 F 1000— 1000 1000 1000 t s t s a 1500- 1500 a a 1500 1500 a m o a) 0 o _ 0 0 0 2000— 2000 2000 2000 2500 2500 2500 2500 a) ; a) a) ; a) 3 0 3 3 0 §- o 0 z z i.%'. , B N G9s41i ■'41.. •Nme Page 14 02 CemCADE.cfw;12-22-2011; laadCase Surface Casing-Primary;Version wcs-cem962_12 Ce m CAD E*well cementing recommendation for 9 - 5/8in Longstring Operator : Repsol(Solsten XP) Well : Qugruk-2 Country : USA State : Alaska Prepared for : Natasha Sachivichik Proposal No. : v1 Service Point : Prudhoe Bay Date Prepared : 12/22/2011 Business Phone : (907)659 2434 Prepared by : Stephen Lauper Phone : (907)273-1765 E-Mail Address : slauper©slb.com $)„, Disclaimer Notice: Schlumberger submds this document with the benef it of hs judgment,experience,and good oilfield practices. This information is provided in accordance with generally accepted industry practice,relying on facts or information provided by others,limitations,computer models,measurements,assumptions and inferences Mat are not infallible. Calculations are estimates based on provided information.All proposals,recommendations,or predictions are opinions only. NO WARRANTY IS GIVEN CONCERNING ACCURACY OR COMPLETENESS OF DATA.INFORMATION PIESENTED,EFFECTIVENESS OF MATERIAL,PRODUCTS OR SUPPLIES,RECOMMENDATIONS MADE.OR RESULTS OF THE SERVICES RENDERED Freedom from infringement of any intellectual property rights of Schlumberger or others is not to be inferred and no melleaual prapeny rights are granted hereby. Mark of Schlumberger Client : Repsol Well : Qugruk-2 Schlumberger String : 9-5/8in Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 1 : well description Configuration : Casing Stage : Single Rig Type : Land Mud Line : 0.0 ft Total MD : 6956.0 ft BHST : 155 degF Bit Size : 12 1/4 in ft (x 1000) psi < a M. . . . . . . . . . 0 ? 4 6 f — Frac L Pore _ ...•....•....•....•.....•......•... 1-,,_,4 L� 1 o- - 1 kr1 N ► 1 1 1 _ : i o a _ _J 0 Well Lithology Formation Press. Page 2 02 CemCADE.cfw:12-22-2011; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Sdhimberger String : 9-5/8in Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Previous String MD OD Weight ID (ft) (in) (lb/ft) (in) 2700.0 13 3/8 68.0 12.415 Landing Collar MD : 6876.0 ft Casing/liner Shoe MD : 6956.0 ft Casing/Liner MD OD Joint Weight ID Grade Collapse Burst Thread (ft) (in) (ft) (lb/ft) (in) (psi) (psi) 6956.0 9 5/8 40.0 47.0 8.681 L-80 4760 6870 BTC Mean OH Diameter : 12.250 in Mean Annular Excess : 30.0 % Mean OH Equivalent Diameter: 12.934 in Total OH Volume : 691.6 bbl (including excess) Max. Deviation Angle : 85 deg Max. DLS : 8.384 deg/100ft Formation Data MD Frac. Pore Name Lithology (ft) (lb/gal) (lb/gal) 2501.0 13.60 8.60 5456.0 14.70 9.60 7000.0 16.20 9.60 Geothermal Temperature Profile MD TVD Temperature Gradient (ft) (ft) (degF) (degF/100ft) 0.0 0.0 15 0.0 1250.0 1250.0 32 1.4 7000.0 6414.3 155 2.2 Page 3 02 CemCADE.cfw:12-22-2011; loadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : 9-5/8in Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 2: fluid sequence Job Objectives: Port Collar @ 2850-ft MD. Bring Cement to Port Collar. Original fluid Mud 10.40 lb/gal : 14.908 cP Ty :25.85 Ibf/100ft2 Displacement Volume 503.4 bbl Total Volume 837.0 bbl TOC 2850.0 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) MUDPUSH II 50.0 804.9 2045.1 13.00 k:6.74E-2 Ibf.s^n/ft2 n:0.314 Ty:8.56 lbf/100ft2 Intermediate Casing 303.6 4106.0 2850.0 15.80 k:1.25E-2 lbf.s^n/ft2 n:0.739 Ty:0.04 Ibf/100ft2 Slurry Mud 503.4 0.0 10.40 Pv:14.908 cP Ty:25.85 Ibf/100ft2 Static Security Checks: Frac 424 psi at 5456.0 ft Pore 277 psi at 2700.0 ft Collapse 3361 psi at 6876.0 ft Burst 6870 psi at 0.0 ft Csg.Pump out 89 ton Check Valve Diff Press 1059 psi ft (X 1000) psi 0 4 6 —Hydrostatic —Frac —Pore o— ■ ■ I. 111 o ft II — �1 ur) 1 Fluid Sequence Static Well Security Page 4 02 CemCADE cfw:12-22-2011; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 SIInhaler String : 9-5/Bin Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 10.40 lb/gal Rheo. Model : BINGHAM P„ : 14.908 cP At temp. :80 degF Ty :25.85 Ibf/100ft2 Gel Strength : 33.00 lbf/100ft2 MUD Mud Type :WBM Job volume : 503.4 bbl Water Type : Fresh VOLUME FRACTION Solids : 5.0% Oil : 1.0% Water :94.0% MUDPUSH II DESIGN Fluid No:2 Density : 13.00 lb/gal Rheo. Model : HERSCHEL_B. k : 6.74E-2 Ibf.s^n/ft2 At temp. :80 degF n :0.314 Ty :8.561bf/100ft2 Gel Strength : (Ibf/100ft2) Job volume : 50.0 bbl Intermediate Casing Slurry DESIGN Fluid No: 3 Density : 15.80 lb/gal Rheo. Model : HERSCHEL_B. k : 1.25E-2 lbf.s^n/ft2 At temp. : 115 degF n : 0.739 Ty :0.04 lbf/100ft2 Gel Strength : (Ibf/100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid :5.105 gal/sk Job volume : 303.6 bbl Dry Density : 199.77 lb/ft3 Yield : 1.16 ft3/sk Quantity : 1465.98 sk Sack Weight : 94 lb Solid Fraction :41.3% BASE FLUID Type : Fresh water Density :8.32 lb/gal Base Fluid : 5.085 gal/sk Additives Code Conc. Function D046 0.200%BWOC Antifoam D065 0.300%BWOC Dispersant D167 0.300%BWOC Fluid loss D153 0.200%BWOC Antisettling D177 0.020 gal/sk cement Retarder Thickening Time: 146min Pump Time+ 120min Safety=4:26 hr:mn MINIMUM(If Port Collar to be opened to circulate cement,extra time will need to be added to Thickenign Time) Page 5 02 CemCADE.ctw;12-22-2011; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Uugruk-2 SchIidergcr String : 9-5/8in Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 4: pumping schedule Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 6.0 50.0 8.3 30.0 80 Mix/Pump Spacer Pause 0.0 0.0 10.0 0.0 80 Drop Bottom Plug Intermediate Casing 6.0 303.6 50.6 303.6 80 Mix/Pump Cement Slurry Pause 0.0 0.0 10.0 0.0 80 Drop Top Plug Mud 7.0 493.4 70.5 493.4 80 Start Displacement Mud 2.0 10.0 5.0 503.4 80 Slow Rate for Plug Bump Total 02:35 837.0 bbl hr:mn Dynamic Security Checks: Frac 263 psi at 5456.0 ft Pore 226 psi at 5456.0 ft Collapse 3361 psi at 6876.0 ft Burst 5531 psi at 0.0 ft Temperature Results BHCT 118 degF Simulated Max HCT 155 degF Simulated BHCT 107 degF Max HCT Depth 6956.0 ft CT at TOC 95 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) 70 degF Bottom Hole (degF) (degF) 155 degF Page 6 02 CemCADE.ctw;12-22-2011; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 SaIlibergcr String : 9-5/8in Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Expected ECDs while Pumping Depth= 6956 ft Frac I I I I I I I i 1 — Fbre - Hydrostatic rn 11r- rn } C ch ! co 7 UN C,' 4) z ♦Tv- W a> 1 1 1 1 I 1 I , 0 20 40 60 80 100 120 140 160 Time(min) Page 7 02 CemCADE.cfw:12-22-2011; LoadCase 9.625in Longstring;Version wcs+xm462_12 Client : Repsol Well : Qugruk-2 M I' String : 9-5/8in Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Expected Pressures while Pumping co i , —Calc.Pump Ress. -Calc.CemHP ..a..1... _ _ • ------ -- I -- 't._ , 111•111.11111011111 Mil Ti. cN_ Num far _ — III iii ____ _. 8- ■ x MN ro11 - a1 ... ! �_in mi ______ atm ----- �r I , co a- - 111 I— .. ...... I N I o 1 T i_._ o f r r r r t 0 20 40 60 80 100 120 140 160 Time(min) Page 8 02 CemCADE.cfw;12-22-2011; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumhurgcr String : 9-5/8in Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Expected Differential Pressure at the shoe at Plug Bump I N_ Depth= 6876 ft N— mem eu o Hydrostatic ._ -0 # _ _ 03 O i 2 O o _ N_ O 1 rV .. O _ r r 1 0 20 40 60 80 100 120 140 160 Time(min) Page 9 02 CemCADE.cfw;12-22-2011; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Sohl■blur String : 9-5/Bin Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Expected Cement Temperatures up to 24hrs after cement is in place o o First Sack Temp. , , I Wall Last Sack Temp. - !!!! , _• _ inli■■■ ■■■ ■ 1 -11-8 " ■ 'i ■■■■ ■ ■ ■ _da 1111111111_111 ■■ ■ _o LL N Np- gill ■ il�. N r_ ■ ■ ■ ■ ■■ M . _ ►-Ul ■ ■■■■ ■ Ella .2 o_ ■■11 1 ■■■ i a a ■II ■■ ■ -fi , , , , _ o _o ■■ ■ ■ ■■■ 1.r. i__ cfl ' ■■ ■■■ ■ ■ 1 ■ II I liii -o ■■ ■ ' ■■■ ■■ ■■■ ■ ■■■■■■■ ■■ 000 v I I I r r rcfl 0 250 500 750 1000 1250 1500 1750 Time(min) Page W 02 CemCADE.cfw;12-22-2011; Loadtase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : 9-5/8in Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 5: centralizer placement Top of centralization :0.0 ft Bottom Cent. MD :6936.0 ft Casing Shoe :6956.0 ft NB of Cent. Used :75 NB of Floating Cent. :75 Centralizer Placement Based on 1 Centralizer per every 2 joints in the Vertical section and 1/1 in the deviated section. Centralizer Placement Bottom MD Nbr. Cent.I Cent. Name Code Min. STO @ Depth (ft) Joint (%) (ft) 2876.0 0 0/0 100.0 1468.0 5036.0 27 1/2 1502395-9 5/8-6-POSITIVE W051 100.0 5016.0 6956.0 48 1/1 1502395-9 5/8-6-POSITIVE W051 49.3 6956.0 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) (lbf) (lbf) 1502395-9 5/8-6- W051 9 5/8 12.000 12.000 Yes Houma N.A. N.A. N.A. POSITIVE ft °lo 80 100 Between Cent. • +At Cent. tn O ■ at O _ O _ Pipe Standoff Page 11 02 CemCADE.cfw;12-22-2011; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Seim huger String : 9-5/8in Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Section 6: WELLCLEAN 11 Simulator u % % �l 0 25 50 75 100 0 50 100 o— —Std Betw.Cent. -- Mud Contamination —Cement Coverage — Uncontaminated Slurry ' O 0 N O O O— O rn O r O N— Fluid Sequence Cement Coverage Uncontaminated Slurry Page 12 02 CemCADE.cfw;12-22-2011; LoadCase 9.625in Longstring;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : 9-5/Bin Longstring District : Prudhoe Bay Country : USA Loadcase : 9.625in Longstring Flub Camneeov Mak MWmth Wd U 3 3 z 3 2000 2000 2000 2000 2500 2500 2500 2500 3000 3000 3000 3000 3500 3500 3500 3500 F 4000 4000 4000 4000 -c 4500 4500 -c - 4500 4500 - a S. x a 0 5000 5000 0 0 5000 5000 0 5500 5500 5500 5500 6000 6000 6000 6000 6500 6500 6500 6500 7000 7000 7000 7000 a> ; m a) 3 a) -o o -o v o -o L 3 3 L 3 0 0 z z I:PUSH S" ■44. ■N PIISM II t Page 13 02 CemCADE.ctw;12-22-2011; LoadCase 9.625in Longstring:Version wcs-cem462_12 1 t Schlumberger CemCAD E*well cementing recommendation for 4.5in Liner Operator : Repsol(Solisten XP) Well : Qugruk-2 Country : USA State : Alaska Prepared for : Natasha Sachivichik Proposal No. : v1 Service Point : Prudhoe Bay Date Prepared : 12/22/2011 Business Phone : (907)659 2434 Prepared by : Stephen Lauper Phone : (907)273-1765 E-Mail Address : slauper©slb.com n Sir 01, VRT E Disclaimer Notice: Schlumberger submits this document with the benefit of its judgment,egienence,and good oiRiekl practices. This information is provided in accordance with generally accepted industry practice,relying on facts or information provided by others,limitations.computer models,measurements,assumptions and inferences that are not infallible. Calculations are estimates based on provided information.All proposals,recommendations,or predictions are opinions only. NO WARRANTY IS GIVEN CONCERNING ACCURACY OR COMPLETENESS OF DATA.INFORMATION PRESENTED.EFFECTIVENESS OF MATERIAL.PRODUCTS OR SUPPLIES.RECOMMENDATIONS MADE,OR RESULTS OF THE SERVICES RENDERED. freedom from infringement of any intellectual property rights of Schlumberger or others is not to be inferred and no intellectual property rights are granted hereby Mark of Schlumberger Client : Repsol Well : Qugruk-2 Schlumberger String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Section 1 : well description Configuration : Liner Stage : Single Rig Type : Land Mud Line : 0.0 ft Total MD : 7956.0 ft BHST : 155 degF Bit Size : 6 3/4 in ft (x 1000) psi < i _ > . . . . . . . . . 0 7 4 6 Frac I [ .".".•.'.•.•.".'.' it.- - Pore t; Ml CO • , , t r , 0 1 c,.- f I - --- 1 = . . . . . . 0 . 6,_ Well Lithology Formation Press. Page 2 02 CemCADE.cfw;12-22-2011: LoadCase 4.5in Production Liner(a);Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 SiIshii's' String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Previous String MD OD Weight ID (ft) (in) (lb/ft) (in) 6956.0 9 5/8 47.0 8.681 Drill Pipe MD OD Weight ID Grade Collapse Burst (ft) (in) (lb/ft) (in) (psi) (psi) 6806.0 4 14.0 3.340 S-135 20140 19490 Liner Hanger : 6806.0 ft Landing Collar MD : 7876.0 ft Casing/liner Shoe MD : 7956.0 ft Casing/Liner MD OD Joint Weight ID Grade Collapse Burst Thread (ft) (in) (ft) (lb/ft) (in) (psi) (psi) 7956.0 4 1/2 40.0 12.6 3.958 L-80 7500 8430 NUE Mean OH Diameter : 6.750 in Mean Annular Excess : 40.0 % Mean OH Equivalent Diameter: 7.462 in Total OH Volume : 54.1 bbl (including excess) Max. Deviation Angle : 90 deg Max. DLS : 8.384 deg/100ft Formation Data MD Frac. Pore Name Lithology (ft) (lb/gal) (lb/gal) 2501.0 13.60 8.60 5456.0 14.70 9.60 7956.0 16.20 9.60 Geothermal Temperature Profile MD TVD Temperature Gradient (ft) (ft) (degF) (degF/100ft) 0.0 0.0 15 0.0 1250.0 1250.0 32 1.4 7956.0 6411.3 155 2.2 Page 3 02 CemCADE.cfw;12-22-2011; LoadCase 4.5in Production Liner(a);Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Section 2: fluid sequence Job Objectives: Cement Liner from TD to Liner Hanger at 6806-ft MD Original fluid Mud 10.40 lb/gal Pv: 14.908 cP Tv:25.85 lbf/100ft2 Displacement Volume 90.0 bbl Drill Pipe Volume 73.8 bbl Total Volume 176.0 bbl TOC 6592.2 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) MUDPUSH II 30.0 520.3 6072.0 13.00 k:6.74E-2 Ibf.s^n/ft2 n:0.314 Ty:8.56 lbf/100ft2 Production Casing 56.0 1363.8 6592.2 15.80 k:1.25E-2 Ibf.s^n/ft2 n:0.739 Ty:0.04 lbf/100ft2 Slurry Mud 90.0 0.0 10.40 Pv:14.908 cP Ty:25.85 lbf/100ft2 Static Security Checks: Frac 1870 psi at 6956.0 ft Pore 320 psi at 7144.2 ft Collapse 7026 psi at 7876.0 ft Burst 8430 psi at 7876.0 ft Csg.Pump out 38 ton Check Valve Diff Press 57 psi (x 1000) psi 0 7 4 6 Hydrostatic —Frac —Pore o � , co Fluid Sequence Static Well Security Page 4 D2 CemCADE.cfw;12-22-2011; LoadCase 0.5in Production Liner(a);Version wcs-cem962_12 Client : Repsol Well : Qugruk-2 SellMieros' String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 10.40 lb/gal Rheo. Model : BINGHAM Pv : 14.908 cP At temp. :80 degF Ty :25.85 Ibf/100ft2 Gel Strength :33.00 lbf/100ft2 MUD Mud Type :WBM Job volume :90.0 bbl Water Type : Fresh VOLUME FRACTION Solids : 5.0% Oil : 1.0% Water :94.0% MUDPUSH II DESIGN Fluid No:2 Density : 13.00 lb/gal Rheo. Model : HERSCHEL_B. k :6.74E-2 lbf.s^n/ft2 At temp. :80 degF n :0.314 Ty :8.561bf/100ft2 Gel Strength :(lbf/100ft2) Job volume : 30.0 bbl Production Liner Slurry DESIGN Fluid No:3 Density : 15.80 lb/gal Rheo. Model : HERSCHEL_B. k : 1.25E-2 Ibf.s^n/ft2 At temp. : 115 degF n :0.739 Ty :0.04 lbf/100ft2 Gel Strength :(lbf/100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.105 gal/sk Job volume :56.0 bbl Dry Density : 199.77 lb/ft3 Yield : 1.16 ft3/sk Quantity :270.40 sk Sack Weight : 94 lb Solid Fraction :41.3% BASE FLUID Type : Fresh water Density :8.32 lb/gal Base Fluid : 5.085 gal/sk Additives Code Conc. Function D046 0.200%BWOC Antifoam D065 0.300%BWOC Dispersant D167 0.300%BWOC Fluid loss D153 0.200%BWOC Antisettling D177 0.020 gal/sk cement Retarder Cement Properties and Additives concentrations will change based on Pilot Testing Thickening Time:42min Pump Time+60 min Circ Time+ 120min Safety=3:42 hr:mn MINIMUM Fluid Loss<50mL Free Fluid OmL Page 5 02 CemCADE.cfw;12-22-2011; LoadCase 4.5in Production Liner la);Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 SiIinkrgnr String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Section 4: pumping schedule Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol lnj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH Il 6.0 30.0 5.0 30.0 80 Mix/Pump Spacer Pause 0.0 0.0 5.0 0.0 80 Drop Bottom Plug 11 Production Liner Slurry 6.0 56.0 9.3 56.0 80 Mix/Pump Cement Pause 0.0 0.0 10.0 0.0 80 DropTopPlug Mud 6.0 73.0 12.2 73.0 80 Start Displacement Mud 3.0 10.0 3.3 83.0 80 Slow Rate,Plug at Hanger Mud 2.0 7.0 3.5 90.0 80 Slow Rate for Plug Bump Total 00:48 176.0 bbl hr:mn Dynamic Security Checks: Frac 1689 psi at 7956.0 ft Pore 266 psi at 6956.0 ft Collapse 7026 psi at 7876.0 ft Burst 8313 psi at 6806.0 ft ' Temperature Results BHCT 118 degF Simulated Max HCT 155 degF Simulated BHCT 139 degF Max HCT Depth 7956.0 ft CT at TOC 138 degF Max HCT Time 00:00:00 hr:mn:sc Static temperatures: At Time 1 (hr:mn) 1 (hr:mn) Geo.Temp. Top of Cement (degF) (degF) 154 degF Bottom Hole (degF) (degF) 155 degF Page 6 02 CemCADE.cfw;12-22-2011; LoadCase 4.5in Production Liner(a);Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 SehI krger String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Expected ECDs while Pumping 1 Death= 7956 ft — Frac ! ff ii ii ii ii — Fbre i f 6 I ` I i - Hydrostatic , CO_ ...... Dynamic i _- I co F_ ._._ .. __ _.- __. L _ C�_ ._ Y_ .,..� _.___....__� �—__. -- cma) M.. – —__� _.. N� 7 2 _ -- ---^_— -- UN N1--. 03 , ,. ,_, .�- .� 1 W -- , • .` ...... I o– --1— { l41111111' 11 ► 1111 i 11 illii iiii I , 0) 1 i r r r r r r r r r r y r I 0 4 8 12 16 20 24 28 32 36 40 44 48 52 Time(min) Page 7 02 CemCADE.cfw;12-22-2011; LoadCase 4.5in Production Liner(a);Version wcscem462_12 Client : Repsol Well : Qugruk-2 SCliIumkiller String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Expected Pressures while Pumping o O — I Calc.Furnp Press. Calc.CemHP II _ O • O —t f CO I i , .� Q 2 .___... I\,____________......._ ,.. _... _ .. __ _ M 1 i 4 1 — . ______— — , — il _ 1 — , r I i i I I ! 1. __ II I 0 I r T — r - I —. 0 4 8 12 16 20 24 28 32 36 40 44 48 52 Time(min) Page 8 Q2 CemCADE.clw;12-221011. LoadCase 4 5in Production Liner(a):Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Expected Differential Pressure at the shoe at Plug Bump o Depth= 7876 ft____ Pseudo Hydrostatic 1i Lir .----- (7) ____.-_--_._. .________-_____ _. Il o Nil' '2 a_ .O b" III' o_ IIlH IIII o_ lilhl _t_ 1 1 1 i _ ___ ____ _ ,...._ r l i r r i i r r i r i r r I 0 4 8 12 16 20 24 28 32 36 40 44 48 52 Time (min) Page 9 Q2 CemCADE.cfw;12-22-2011; LoadCase 4.5in Production Liner(al;Version wcs-cem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Expected Cement Temperatres up to 24hrs after cement is in place O CC' — First Sack Temp. 4 1-1 Last Sack Temp. I-----1-4---1-1-----,H- _ 0 to v- r O 0 0 N- —_. — _O LL= N 0 .._...._._.__....,u... ______ — ____ _...__._r.._..*—.____— ____ 00 0 +••;0_ .______ .___ __ - ..._.w _0-C CO a _ ___-7-_,-- __ .. _. _, -- 0 m 1 0 U ._ — - .. N ______— .,......._.,__ -v — _— .. .. C1-0O CO_ ________ __________________________ ...__._-...__.____._—.. V 11/ 8- -- _O • Lo 0 0 0 r I I r I I r 0 250 500 750 1000 1250 1500 1750 Time(min) Page 10 02 CemCADE.ctw;12-22-2011; LoadCase 4.5in Production Liner(a);Version wcscem462_12 Client : Repsol Well : Qugruk-2 Schlumberger String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Section 5: centralizer placement Top of centralization :6806.0 ft Bottom Cent. MD :7946.0 ft Casing Shoe :7956.0 ft NB of Cent. Used :56 NB of Floating Cent. :56 Centralizer Placement Bottom MD Nbr. Cent./ Cent. Name Code Min. STO @ Depth (ft) Joint (%) (ft) 7956.0 56 2/1 1502041-41/2-4-POSITIVE W036 45.9 6936.0 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) 1502041-41/2-4- W036 41/2 6.500 6.500 Yes Houma N.A. N.A. N.A. POSITIVE ft o_ 41 ■1 80 100 Between Cent. -At Cent. 0 c>7 0 rn— Pipe Standoff Page 11 02CemCADE.ctw;12-22-2011; LoodCase 4 Vu Production Liner al;Version wcs-cem4t?_t? Client : Repsol Well : Qugruk-2 Schlumberger String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner(a) Section 6: WELLCLEAN II Simulator % 0/0 ft 25 50 75 100 0 50 100 o— _ ( - cOOD I Std Betw.Cent. - Mud Contamination I — Cement Coverage — Uncontaminated Slurry o O— r- 0 0 r I O Fluid Sequence Cement Coverage Uncontaminated Slurry Page 12 02 CemCADEcfw;12-22-2011: LoadCase 4.5in Production Liner(al;Version wcscem462_12 Client : Repsol Well : Qugruk-2 Seiikrger String : 4.5in Liner District : Prudhoe Bay Country : USA Loadcase : 4.5in Production Liner la) fa fncnhabom Flet...d m**WA z z 3 6800 , 6800 6800 6800 6900 6900 6900- 6900 7000 . i .- - 7000 7000 7000 7100 , 7100 7100_ 7100 7200 7200 7200 7200 7300 7300 . 7300 i 7300 a 7400 0' 7400 a a 7400 }; 7400 a 0 7500 m 7500 0 0 7500 _ 7500 0 7600 g 7600 7600 ---3 7600 7700 7700 7700 `< 7700 7800 7800 7800 7800 7900 7900 7900 7900 1 au 3 w a) 3 a) v o -o -o o -o 3 3 0 0 z z UDPUSNtl Page 13 02 CemCADE.ctw;12-22-2011; LoadCase 4.5in Production Liner(aI;Version wcscem462_12 REPJ OL ...4111111111114 Qugruk Area Pore Pressure Prediction .1° \ . •rw.awl.a "ZQ o 060 fpuc •ETHISkgs1 w x+ .1 1� • p 3„Ui. - '''4- H-4 ,com•aw ” spy+. 3 ;r.)a :.o Flea-4 4' "e '7,.', r' J h 17 �ta. 4ua� ?H^24.:1111, tin.wn.a cl"ce.DMI6.°46 1) ° ao )c Q U p 267 0 D`"lidQp or --' • 91P9444 . MT 9 47° V`.••••1111169••••111116904120 Pbwa 00 cI (�� .u"4Fels ,gni-, 0 p dp dr • • a 091114/lid y 11.,166M•444Keewow1CD 1:6 1 0 740 V fl c upv..ww um m-n DO , v • ��0, 7 1� ,. j • Kus+r�u9 Ar Urn W�Koo.xo,1 G n J o / " 11555.1A CP 0 • o (� f V' aro..a wlnrsP.loprwa C �e�/n k- rKIwFFNwM WW1 0 n nd 4 °4 L� C 0 ,j'' %Ori p � Trt,:74.--'-_"4 n r � • ORae:Wells<9 00011 ? b i)C _9 ` /tri ..- a 1i"s d+u,, r '° (�'' OMeI wok. 9,00011 ril rig7��1 4J Cly ,j/ • Repsol 2012 Wella 3 . v 0 :' .� S 7 RelA / O 1( , ° pso Production Unl4 0y �'� g,rte. O _ O • is 4n ` T1KVi119114., �s.lWL1 1y 'a .,)r a� 'r : 0 3 6 12 10 24 J M`af Repsol Seismic Attributes Group Repsol Services Company 2001 Timberloch Place,Suite 3000, The Woodlands,Texas,77380, USA Tel: 281-297-1000 December, 2011 REPJOL 11111111 Qugruk Pore Pressure and Shallow Hazard Project 1. Purpose The goal of this report is to show the results of the well based pore pressure analysis for the proposed locations in the Qugruk area. 2. Summary A geopressure analysis for the locations in the Qugruk area was performed using offset well information. Overburden gradient, fracture gradient, travel time (DT) normal compaction trend, resistivity (RT) normal compaction trend, DT to pore pressure gradient relation and RT to pore pressure relation were generated from Colville River-1 and Till-1 offset wells. The pore pressure gradient, fracture gradient and overburden gradient estimated at the offset wells were used to generate a local geopressure model for the locations in the Qugruk area. 7n •Tuvaq StM0-1 jr j.) 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Geophysics Madrid Unit- Seismic Attributes Group 2 REPJOL Qugruk Pore Pressure and Shallow Hazard Project 3. Pore Pressure Prediction Methodology The overburden gradient for each analogue well was generated from a composite RHOB log. The RHOB log was created by combining shallow density values using the Miller method and log density measurements. The Miller density relationship was used to generate the density data in the shallow section. This new density profile was then integrated to establish the overburden gradient used for pore pressure and in-situ stress analyses for the target well. The pre-drill pore pressure prediction model for the Qugruk area was based on a formation compaction mechanism. Eaton's method was used with the resistivity data. Sonic DT data was analyzed using Bower's normal compaction trend. Model predictions were calibrated to available well data such as measured pressure data, mud weight, losses, stuck pipe, high gas and influxes, etc. Data from offset wells included • Wireline data(Density, GR, Caliper, Resistivity, Sonic,Neutron Porosity, etc.). • Drilling reports, well reports, well data—LOTs, MWs, drilling events etc. Fracture gradients were calculated using the Eaton method calibrated to reported LOT data. This method requires prior estimation of pore pressure and the overburden gradient, along with either a matrix stress (effective stress ratio) dataset or an estimate of the formation's Poisson ratio (v). Due to the limited amount of shear sonic data in the area, an effective stress ratio was developed using LOTs, lithology and other well information and experience in the area. The pore pressure profile at the proposed well location was generated from the interpreted pore pressure at the offset well locations. The result is a pore pressure profile at the prospect locations that was combined with the overburden gradient to calculate the fracture gradient. 3 REPJOL avonm Qugruk Pore Pressure and Shallow Hazard Project 3.1 Available Data Analogue well data were available for analysis from two wells within the area. Petrophysical data supplied included wireline data (density, GR, SP, resistivity, sonic, caliper), well data (Mud Weights, LOTs and DSTs), and well events (influxes, mud losses, stuck pipe, etc) for the wells noted above. Pore pressure calculations in offset wells were calibrated to RFT/MDT pressures, where available. Other calibration data included lost circulation, stuck pipe, over pull, gas events, and mud weights, all of which helped constrain results from the ID analysis. This project was performed using the effective stress method. Effective stress methods of pore pressure analyses are based on Terzaghi's effective stress principle. Terzaghi's principle states that pore pressure is the difference between the overburden pressure and the effective stress. Effective stress is the amount of overburden pressure that is carried by the rock matrix. In other words vertical stress minus matrix stress equals pore pressure (Equation 1). PP= 6V-6E (1) Where: PP= Pore pressure [ppg] aV =Total vertical stress [ppg] aE= Effective (matrix) stress [ppg] 3.2 Resistivity-based Pore Pressure Resistivity is also sensitive to compaction (porosity) and may be used to estimate pore pressure using Eaton's equation (Equation 3). This is an empirical equation that has a form like the Terzaghi's expression. It also uses a normal compaction trend, but in contrast to the equivalent depth method, the resistivity is compared to the normal compaction trend horizontally rather than vertically. , .'<<, < < 11 - �� ( �� �n� 4 REPJOL 11111•11111■ Qugruk Pore Pressure and Shallow Hazard Project Pp= OBS— [(OBG-PH) (RVRN)1 (2) Where: Pp= Pore pressure gradient [ppg] OBG = Overburden gradient [ppg] PH=Normal pore pressure, usually 8.5 [ppg] Ro= Observed shale resistivity [ohm-m] RN =Normal compaction shale resistivity [ohm-m] x= Empirical exponent calibrated to the well log information 3.3 Sonic-based Pore Pressure The Eaton Method is one of the more widely used quantitative methods. This method applies a regionally defined exponent to an empirical formula. The exponential is calculated using directly offset well information. This approach facilitates the calibration of the Eaton Model for different parts of the world where it may be appropriate for application. Eaton's method (Equation 3) uses the principle that rocks with equal acoustic travel time have equal levels of effective stress. Bower's normal compaction trend parameters are developed by fitting the Bower's normal compaction trend to known effective stress and travel time data at the analogue well. These parameters are used to generate the normal compaction trend at the target locations. Once the normal trend is known at the target location, the Equivalent Depth method is applied to the travel time data to determine the pore pressure. Pp= OBG— [(OBG-PH) (Vp/Vp-N)1 (3) Where: Pp=Pore pressure [ppg] OBG= Overburden stress [ppg] PH= Hydrostatic pressure, usually 8.5 [ppg] Vp= Observed P-wave velocity [m/s] VP_N=P-wave velocity for hydrostatic pore pressure [m/s]. X= Eaton's fitting exponent. ��Iti�;. �'"; fi '; , E !, 5 REPJOL imion Qugruk Pore Pressure and Shallow Hazard Project 3.4 Fracture Gradient Fracture gradients were calculated with the Eaton's method for shale formations. This method requires having previously analyzed pore pressure and overburden gradient curves. Due to the limited amount of compressional and shear sonic data available a Poisson's ratio dataset was generated based on reported LOTs, well events and prior experience in the area using the Eaton fracture gradient calculation. The reported LOT data for some offset wells were used as an approximate calibration of the fracture gradient. Input data for the Eaton's fracture gradient calculation were the definitive pore pressure, the overburden gradient and the Poisson's ratio calibrated to losses and partial losses where possible. The Eaton's model is expressed as follows: FG= OBS— [(OBG-PP) (v/(1- v))] (4) Where: FG = Fracture Gradient [ppg]. PP= Pore pressure [ppg]. OBG = Overburden stress [ppg]. v= Poisson's ratio [dimensionless]. � , z 6 REPJOL win Qugruk Pore Pressure and Shallow Hazard Project 4. Offset Well Analysis 4.1 Vertical Stress Analysis Density profiles were generated by combining the near mud line densities with the wireline densities. An overburden gradient (OBG) curve was created by integrating this composite density data. The calculated OBG was adjusted for water depth and air gap. The resulting OBG compared favorably with OBG calculated for the other offset wells (figure 4.1). 4.2 Pore Pressure/Fracture Pressure Analysis 4.2.1 Pore Pressure Analysis Pore pressure was analyzed by resistivity and sonic methods and was calibrated with MDT and mud weight. It should be noted that sometimes the predicted pore pressures do not completely match the measured pressure data, because the predicted pore pressure is only related to shale formations, and MDT/RFT's measure pressure in permeable formations. 4.2.2 Fracture Gradient Fracture gradients were calculated using the Eaton's method described above. The definitive pore pressure for each well was used as the input pore pressure. An effective stress ratio was obtained by calibrating to the LOT data. If no recorded pressure data was available to allow for the determination of minimum stress, then we assumed that the LOT data were leak off pressures (LOP). The following sections show the offset wells analysis for pore pressures obtained from 1- D pore pressure analysis. 4.3 Offset Wells Analysis The offset well analysis was performed on the Colville River-1 and the Till-1 wells. The Eaton's method was used with the resistivity (RT) and sonic (DT) data. Model predictions were calibrated to available well data such as measured pressure data, mud weight, losses, stuck pipe, high gas and influxes, etc. Data from offset wells included: REPJOL Qugruk Pore Pressure and Shallow Hazard Project • Wireline data (Density, GR, Caliper, Resistivity, Sonic, Neutron Porosity, etc.). • Drilling reports, well reports, well data—LOTs, MWs, drilling events etc. Fracture gradients were calculated using the Eaton's method calibrated to reported LOT data. The pore pressure profile at the proposed well location was generated from the interpreted pore pressure at the offset well locations. The result is a pore pressure profile at the prospect locations that was combined with the overburden gradient to calculate the fracture gradient. I „ . I I 1 -- - —RHOS COMP Till- ABG rhoh Ill -_-- — — RHOB ColvdVe 1111 .-0130 rinb Colvdie _ = ! E° 1115 _ 1115 1 '2231 , 3211 3345 — 3345 E 44111 CrIII 1 5575 5575 4N/ UN 112 211 311 1111 1211 liN 31.11 Figure 4.1: Density logs (left) and Overburden Gradient (right) comparison. Geophysics Madrid Unit- Seismic Attributes Group 8 REPJOL 11111111111111111 Qu2ruk Pore Pressure and Shallow Hazard Project 4.3.1 Offset Well Colville River-1 The well Colville River-1 has a total depth of 6900 ft approximately. This well has one (1) leak off measurement located at 1760 ft with a value of 13.4 ppg. Figure 4.2 shows the gradient results panel, this panel illustrates that the well has a hydrostatic pore pressure regime from surface to about 5720 ft. The geopressure ramp that starts at 5720 ft increases the pore pressure from hydrostatic to about 10 ppg at total depth (TD). The fracture gradient was calculated using a Poisson's ratio of 0.45. The drilling window at TD is about 6.6 ppg. 4.3.2 Offset Well Till-1 The well Till-1 is located north of the Colville River-1 with a total depth of 6975 ft approximately. Figure 4.3 shows the gradient results panel; this panel illustrates two geopressure ramps the shallower located at 3040 ft and the deeper one at 5680 ft approximately. The well Till-1 has a hydrostatic pore pressure regime from surface to about 3040 ft. The shallower geopressure ramp that starts at 3040 ft increases the pore pressure from hydrostatic to about 9 ppg at 5680 ft. After that, the second ramp increases the pore pressure gradient to 10.1 ppg. The fracture gradient was calculated using a Poisson's ratio of 0.45. � �� , - ,, 9 REPJOL 11111 Qugruk Pore Pressure and Shallow Hazard Project Colville lOol ville tRii.reF h (OH) - Results Gradients s --Fr Eaton AT PR :1.45 MI LOT Colville River -Colvil3e FG Eaton Int PR=.45 --FC Eaton DT P R-U 45 Hydro een —P—PP IFtoCnoDivl ._ —PP Eaton RT t••• 081:1 rbob Colville 13.4 ppg , • y 4 *i � 1 irt 1: 3 i Viae Z? I $4. ' M i i i 8-00 12!Lei 16 f1 20.00 C.h i1L River-1-OH - FO Eaten RT PR-0.45(ppg) Figure 4.2: Well Colville River-1 gradients results panel. It can be observed a geopressure ramp that starts at 5720 ft approximately and increase the pressure gradient until 10 ppg at TD. Geophysics Madrid Unit- Seismic Attributes Group 10 REPJOL 101 Qugruk Pore Pressure and Shallow Hazard Project Till-1 (OH) - Results Gradients s —PP_Int Till-1 1s 4 --FO Eaton RT PR=0.43 --R3 Eaton DT PR=4.5 _ - —PP Eaton RT -�-� —PP Eaton DT --Till-1 FO Tut PR-f145 ♦ FMT Till ppg 1 ' \ Hydro rt o^Penafi tat i• — me T, . Atest Snit_ --- - -....N14____.� _._► TOPS�'IN —OBC+ rhvb Till West Soak I i► -9 SA" a t I P '� `; i!it --I \ } " p 4 \ 7 ft$ iau i \ se is + i IlliaI , 1\,_ i ,. op yup .--ak--- IT,F,Noigs t j 'ti i j i 00 121(10 16ion 20 00 Till-i -OH PP Tai Tilt-1 (pm) Figure 4.3: Well Till-1 gradients results panel. This well shows two geopressure ramps the shallower located at 3040 ft and the deeper one at 5680 ft approximately. Geophysics Madrid Unit- Seismic Attributes Group 11 REPJOI onmem Qugruk Pore Pressure and Shallow Hazard Project 4.4 Qugruk Area Model Location Well Based on the 1-D offset well analysis it was generated a model well pore pressure profile for the Qugruk area. The pore pressure panel for the model well (figure 4.4) includes the pore pressure gradient the overburden gradient and the fracture gradient calculated using a Poisson ratio of 0.45. Qugruk Area (OH) Model Location Project Nsune:Alaslcs>t Project 4llslltst: i'C' --L- --L,` PP MODEL DBi3 Model --Coivi 1e FC Eaton Int PR-0.45 '• •LOT Colville Fiver 1i0I R* � 'silk:3.4 1% 2600 —�i -- — 1.\ 3006 ;I .. Iti 51101 6606 4 —�— i A 00 12'00 15tH 2(1.00 Colville River-1-OH PP MODEL(pm) Figure 4.4: Qugruk area pore pressure model. This model was generated from the 1-D analysis of the offset wells Colville River-1 and Till-1. Geophysics Madrid Unit- Seismic Attributes Group 12 REPlOL mimmi Qugruk Pore Pressure and Shallow Hazard Project 5. Shallow Hazard Analysis The goal of the shallow hazards analysis is to identify under-compacted formations, shallow gas accumulations and gas hydrates zones that can represent a drilling hazard. 5.1 Under-compacted formations After the analysis of the available seismic data, regional drilling reports and geological information it was determined the risk of shallow gas sands and under-compacted formations is none to low in the Qugruk area. 5.2 Gas hydrates Gas hydrates (GH) are lattice like solids made up of water and mainly methane gas produced under low temperatures and high pressures. The most studied gas hydrate is created with methane as entrapped gas molecules. Gas hydrate with methane is stable at the pressure and temperature conditions present in the sediments beneath most of the deep water environments. They represent a drilling hazard because when drilling through a hydrate reservoir, the heat generated by the bit friction can cause the hydrate to dissociate and the freed gas might ignite, causing unpredictable hazardous situations. Gas hydrates are restricted to the shallow sediments (less than 2,000 meters). The GH stability zone requires pressure and temperatures conditions (Figure 5.1) that are found only either in polar continental sedimentary rocks where surface temperatures are less than 0 °C; or in oceanic sediment at water depths greater than 300 m where the bottom water temperature is around 2 °C. Continental deposits have been located in Siberia and Alaska in sandstone and siltstone beds at less than 800 m depth. Oceanic deposits seem to be widespread in the continental shelf and can occur within the sediments at depth or close to the sediment-water interface. ai. , vl.-n i.. ii , 13 REP-IOL u Quaruk Pore Pressure and Shallow Hazard Project 40 35 -.� Methane, clathrate stable co 30 M 25 0 co 20 10 0 a r . 175 200 225 250 275 300 325 Temperature, Figure 5.1: Methane Hydrate pressure-temperature stability curve. According to the methane hydrate pressure-temperature stability curve, the Qugruk area has the stability conditions for the generation of methane hydrates inside and/or in the base of the permafrost. The well Till-1 mud log shows some areas into the permafrost that exhibit an abnormal high gas log that can be associated gas hydrates(figure 5.2). Geophysics Madrid Unit- Seismic Attributes Group 14 REPJOL 11111.1 Quaruk Pore Pressure and Shallow Hazard Project L GR otology RT Total Gas C1-05 Iraa.,....v..., �[ ". IASI ^ Iw T ! +I _ art-r.Qar.UL'ci.b.IC. --- • 1 #-Ili On YiCaA INc� .. .. ' igi,i,. , a � sai iru r uc ee .ca 1✓I�.W_ .r c. '' a ?'- 111 .c yN, I 1aAc kat le to tNJ[.IMLILAR 71 viz. n , i i I� ; r w~o:h,, ...1� rrrrr \.... c—don r, , T._. I I • ) .• ; 1 L 0.r IIRR w It .tj1. `1 ■q[moi I 4 , I ., rr-r.r� , :..., I ! • ' —r77— 1Y7-t:1 W.ill➢ici,Gi'Ir. 1_ I . . I 1` c`t 7 WAY..i' t"1 rrra.— .: _ 1 �MIplialt- tt.t „� 70[..1¢6 '.t•I 11� . — ,1i .. I1 si, 'i O].'IOC II/1 �..� O. •,.• , I I� I I. '.MV,illi ffLI'.-MLA', Figure 5.2: Abnormal high gas log in the well Till-I. Geophysics Madrid Unit - Seismic Attributes Group 15 REPJOL Qugruk Pore Pressure and Shallow Hazard Project 6. Conclusions • The offset well analysis does not show any risky geopressure zone. The studied wells show similar pore pressure profiles with pressure gradients that ranges from hydrostatic in the shallow interval to 9.8- 10.1 at TD. • The final fracture gradient profiles and LOT comparison reveal that the average regional Poisson's ratio is close to 0.45. • The overburden gradient comparison shows a consistent average density model with maximum overburden gradient variations of less than 0.5 ppg. • The risk for sub-compacted sequences (shallow flows) and shallow gas sands are none to low at the studied areas. • The studied area is located inside a potential gas hydrates zone. 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Q O O ID co C6 O O N _ U cn O Fr) N N C O CZ OU C6 N O O U 15 cu On cn ^, (CZ ^n' co O Cl).470 CZ I— N I- CZ .C H 0 ti M 0 W ca 4) s_ co Q O � O) O (/) >, Ct3c� < Q N 4) 0 O Q- Cl) E E C <<C O C V U (n O .� .� Cl) p 0 0 0 0 0 0 N CO ct Lo Co O u) /^ M 0 ) ^ O t ill C6O- _0 W CDa) co — L - O N � Q U O cz U) Ca .c = . co o CD a) caTo .c O O - Q co U +r CD C6 C CO CD O cn co O 0 1 w0 O a) U) O ' O a) Ca N N U a o a) > a) a) a) O Q N O RS U) E co O .� L s 0c.n CO .. )1X CD � 0 N 12 a) U) (/) c Ca -c E 0 O � N N 1 a1 _ 0 .0 .-O C D CD , a) CD co a) c a) o a) a) (/) _ H cin I— NN I— CD .C 1— co 0 0 Page 1 of 3 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Wednesday, December 28, 2011 10:25 AM To: Natasha Sachivichik Cc: Bill Penrose Subject: Re: Qugruk#2 (PTD 211-167) Thanks for the responses .. I will be in the office Thursday and will give you a call . Guy Sent from my iPhone On Dec 27, 2011, at 2:16 PM, "Natasha Sachivichik" <natasha.sachivichik@solstenxp.com> wrote: Guy, Please see our answers to your questions. 1)What are the cementing specifics... can I get the number of sacks and yield.? Detailed cementing designs are provided here as attachments. 2)When drilling the horizontal production lateral you are using a 6%" bit to drill out of 9 5/8" intermediate casing . Can you explain why? This plan was developed to allow for a contingency casing string. The 12 %4" hole and 9 5/8" casing are planned as the primary plan. Repsol would like to have an opportunity to set a contingency 7" liner in case drilling problems arise and the 9 5/8" casing has to be set shallower. In the case that 7" casing is set, a 6-1/8" production hole will be drilled out of the 7" casing. 3)What is the min required FIT(or LOT)when you drill out of your 13 3/8" casing? There is no mention of a FIT once you drill out of the 9 5/8"casing shoe and start your horizontal lateral. Do you have details for that operation? The minimum required FIT/LOT equivalent mud weights at the surface casing (13-3/8") and intermediate (9-5/8" or 7") casing shoes are 11.5 ppg and 12.5 ppg, respectively. These values are significantly above the pore pressures and mud weights expected prior to the end of the next hole section. The intermediate FIT/LOT value is also significantly below the anticipated fracture gradient at the surface casing shoe. Please see the attached Q2 Geo-Mechanical Plot. Also attached is our detailed FIT/LOT procedure. 4)There are no details on the plugging back the"pilot hole". How many separate plugs are you considering??? You will need Commission approval before you start that operation. (AOGCC will need to see OH logs and approve plug placement). Our well plan says that the pilot hole will be plugged back from TD at 7,000' to —5,400' MD/TVD with a continuous cement plug. This will require 2 consecutive cement plugs of 800' each. A detailed plug- back procedure will be developed and submitted once the pilot hole is drilled and OH logged. 5) No mention of changing Rams to 9 5/8"or 4.5" and pressure test before running casing. Our detailed well plan includes changing to 9-5/8" and 4-1/2" rams and pressure testing before running casing. 6)Where is your planned 4.5" liner top going to be? The PTD states 5400' and ... is that correct? that is a long overlap from the 9 5/8" shoe at 6957' md. Not clear from your well 1/4/2012 Page 2 of 3 schematic ... Repsol requested the 4.5" liner hanger to be in the vertical section of the hole. This is the reason for such a long liner lap. We will update the wellbore diagram to reflect the liner top depth. 7) No mention of FO safety valves and crossovers being available on rig for emergencies. All required safety valves and crossovers will be available on the rig for emergencies. Note: A separate sundry (10-403)will be needed to perforate, Stimulate and Flow test the well. A detailed completion, stimulation and flow testing procedure is being developed and will be submitted as a part of a separate sundry 10-403. Natasha Sachivichik Senior Drilling Engineer <image003.png> 310 K Street,Suite 700 Anchorage,AK 99501 MAIN (907)264-6100 DIRECT (907)2646116 CELL (907)575-7156 natasha.sachivichik@solstenxp.com From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Friday, December 23, 2011 9:47 AM To: Natasha Sachivichik Cc: Bill Penrose; Davies, Stephen F (DOA) Subject: Qugruk #2 (PTD 211-167) Natasha/Bill: In reviewing the PTD I have a couple of comments/questions: 1)What are the cementing specifics... can I get the number of sacks and yield.? 2) When drilling the horizontal production lateral you are using a 6%" bit to drill out of 9 5/8" intermediate casing . Can you explain why? 3)What is the min required FIT(or LOT)when you drill out of your 13 3/8" casing? There is no mention of a FIT once you drill out of the 9 5/8"casing shoe and start your horizontal lateral. Do you have details for that operation? 4)There are no details on the plugging back the"pilot hole". How many separate plugs are you considering??? You will need Commission approval before you start that operation. (AOGCC will need to see OH logs and approve plug placement) 5) No mention of changing Rams to 9 5/8" or 4.5"and pressure test before running casing. 6) Where is your planned 4.5" liner top going to be? The PTD states 5400' and ... is that correct? that is a long overlap from the 9 5/8" shoe at 6957' md. Not clear from your well schematic ... 7) No mention of FO safety valves and crossovers being available on rig for emergencies. Note: A separate sundry (10-403)will be needed to perforate, Stimulate and Flow test the well. 1/4/2012 Page 3 of 3 Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) <LOT Form- SXP.xls> <LOT Procedure.doc> <Qugruk-2 Intermediate Casing CemCADE--- <Qugruk-2 Production Liner CemCADE--- <Qugruk-2 Surface Casing CemCADE--- vi.pdf5 1/4/2012 Davies, Stephen F (DOA) From: COBOS, CARLOS [carlos.cobos@repsol.com] Sent: Thursday, December 22, 2011 12:23 PM To: Davies, Stephen F (DOA) Cc: VILLALOBOS VENCELA, LORENZO; KILLION KILLION, ROBERT NEWTON Subject: Shallow Hazard Analysis for J-5 and Qugruk areas Dear Mr. Davies, We analyzed the available 3D and 2D post-stack seismic data for shallow gas and under-compacted formations. The analysis was performed based on the amplitude extraction from the surface to 800 ms every 120 milliseconds; everything deeper than that was not considered as a shallow hazard. Shallow gas and under- compacted formations have lower impedance than the compacted brine filled sands, therefore we were looking anomalous negative reflectivity zones or suspicious dimming areas. Additionally, we analyzed key vertical sections for lost of reflectivity coherence and vertical chimneys that could be associated to gas leaking. Finally, we studied the available well log data to understand the regional compaction trend and its elastic behavior. The results can be summarized: 1. The well log data indicated that the shallower zone was part of the permafrost area. There is not shallow gas accumulations in this zone. The main shallow hazard, in this zone, is associated to gas hydrates. Gas hydrates represent a drilling hazard because when drilling through a hydrate reservoir, the heat generated by the bit friction can cause the hydrate to dissociate and the freed gas might ignite, causing unpredictable hazardous situations. Just beneath the permafrost is possible to found gas hydrates intervals too, the well Till-1 shows some high gas count zones in the lower part of the permafrost and just below the permafrost. Bellow the permafrost the rock is already consolidated and there is not risk of under-compaction formation. 2. The analysis of the seismic amplitudes maps and the vertical sections did not show any large amplitude anomaly that could be associated to shallow gas accumulations. In the analyzed vertical sections, we did not found any lost of amplitude coherence, chimneys or time sags that could be associated to gas in the first 800 ms of seismic data. I hope this would answer your questions. 1 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. TRANSMITTAL LETTER CHECKLIST WELL NAME PTD# l--f /(e7 Development Service /Exploratory Stratigraphic Test Non-Conventional Well FIELD: C_,XC f4-T`)-4-1:y POOL: Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( GLS7 r—[�/� 2.-PH) and API number (50-/03 - -7)) from records, data and logs acquired for well 1--u . The permit is approved subject to full compliance with 20 AAC / 25.055. 4ie '&j J tlie-X"—(7 I c TCH 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:9/09/2011 m -3 o 1- a -n $ 3lom ov 0 cn • ' o S. r- 0 3G) co CD y r .O N _ 3 N to m m.(0 0 ? l f4 _- C o m XI p of N m CI 0 0 0. 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U7 N to 3 .0•. — O O c 0 17 CD d 'l00 CSD ' m O a0i (D - A- 6 = S 0 0 0 3= o n co (n S S 0d O" ' CO CD 0 CD 7 7 (D D n 01- n Hp- O 7 CU CD c = NO O N O 7 1 7 o (D ES 0 (N N CD 7 c O CO CD In 0 Cl) 7 Li I_7 Confidential AS.38.05.035 FOR (2012 Alaska Campaign) Provided by: Approvedby:RicardFernandez Compiledby:Daniel Grunwald Harry Bleys Distribution:08/11/2014 T.D. Date: 02/15/2012 Confidential AS.38.05.035 Qugruk-2 1 1 MUDLOGGING EQUIPMENT & CREW..........................................................................................................2 1.1 Equipment Summary...........................................................................................................................2 1.2 Mudlogging Crew.................................................................................................................................2 2 WELL DETAILS..............................................................................................................................................3 2.1 Well Summary......................................................................................................................................3 2.2 Hole Data.............................................................................................................................................3 2.3 Well Synopsis.......................................................................................................................................3 3 GEOLOGICAL DATA......................................................................................................................................4 3.1 Lithostratigraphy .....................................................................................................................................4 3.2 Mudlog Summary ................................................................................................................................4 3.3 Connection Gases..............................................................................................................................12 3.4 Trip (Wiper) Gases.............................................................................................................................12 3.5 Sampling Program / Sample Dispatch................................................................................................13 4 PRESSURE / FORMATION STRENGTH DATA...............................................................................................14 4.1 Pore Pressure Gradient Evaluation....................................................................................................14 4.2 Quantitative Methods........................................................................................................................14 5 DRILLING DATA..........................................................................................................................................15 5.1 Daily Activity Summary......................................................................................................................15 5.2 Survey Data........................................................................................................................................15 5.3 Bit Record ........................................................................................................................................016 5.4 Mud Record Contractor: MUD COMPANY.......................................................................................016 Confidential AS.38.05.035 Qugruk-2 2 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Total Parameter Ditch gas QGM Agitator and Gas Trap (mounted in opossum belly) E-Series Total Gas and Chromatography by flame ionization (FID) 1 hour opossum belly filling up with cuttings, and gas trap inadvertently Block Height/Bit depth Crown block encoder 0* Hook Load / Weight on bit RigWatch 0* Mud Flow In Derived from Pump Rates and Pump Output 0* Mud Flow Out Fluid level radar sensor on flow line 0* Mudlogging unit computer system HP Compaq Pentium 4 (x3: DML, Rigwatch, and Sample Catcher station) 0* Pit Volumes, Pit Gain/Loss Fluid level radar sensors atop mud pits 0* Pump Pressure Pressure transducer 0* Pump stroke counters Proximity sensors 0* Rate of penetration Derived from bit depth vs. time 0* RPM Top drive sensor 0* Torque Top drive sensor 0* * RigWatch data lost for less than 5 minutes each day while RigWatch resets 1.2 Mudlogging Crew The following Canrig’s Mud loggers, Sample catchers and technicians were part of the crew members. Unit Type: Arctic Unit Number: ML057 Mudloggers Years *1 Days *2 Sample Catchers Years *1 Days *2 Technicians Days Harry Bleys 10 5 Taylor Englert 1 5 Allen Williams 4 Dan Grunwald 4 5 Josh Michaud 2 5 Steve Forrest 1 1 Years of experience as Mudlogger *2 Days at wellsite between rig up and rig down Confidential AS.38.05.035 Qugruk-2 3 2 WELL DETAILS 2.1 Well Summary The Qugruk-2 well was an exploratory well intended to drill three boreholes from same surface location. Well will reach a Total Depth of 7025’ and obtain core and productivity data of the Nechelik sands. Also it is aimed to investigate reservoir potential of the Jurassic sands and Kuparuk sands. Well:Qugruk-2 API Index #:50-103-20649-00-00 Field:Exploration Surface Co-Ordinates:X: 408781ft; Y: 6016840ft Borough:North Slope Primary Target Depth:UTM Zone 4, NAD 27 State:Alaska Total Depth:N/A Rig Name / Type:Nabors Alaska Drilling Suspension Date:2,526’MD/ 2,525’TVD Primary Target:105AC / Arctic Land Rig License:02/15/2012 Spud Date:Nechelik Sandstone Ground Elevation:000-000 Completion Date:02/13/2012 RT Elevation:10.2’ AMSL Completion Status:03/21/2012 Secondary Target:30.75’ AMSL Classification:(plugged and abandoned) Depth:N/A TD Formation:Exploration TD Date:02/15/2012 Days Drilling:Schrader Bluff/equivalent Days Testing:0 2.2 Hole Data Hole Section MaximumDepth TD Formation Mud Weight (ppg) Dev. (oinc) Casing/ Liner Shoe Depth LOT (ppg)MD (ft) TVD (ft) MD (ft) TVD (ft) Conductor Permafrost 9.1 0 20” N/A N/A N/A 16” 2526’ 2525’Lower Schrader Bluff 9.2 0.8 N/A N/A N/A N/A 2.3 Well Synopsis Exploratory Qugruk-2 well was spudded on February 13th, 2014. On 15 February, while drilling at 2525’ a well control incident occurred on the Qugruk-2 exploration well on the North Slope of Alaska. The diverter was utilized to control the event; however, water-based drilling mud, natural gas, formation water, and formation solids flowed from the well. Rig personnel were evacuated and no one was injured as a result of the event. Confidential AS.38.05.035 Qugruk-2 4 3 GEOLOGICAL DATA 3.1 Lithostratigraphy Age Formation MD (ft) TVDSS (ft) Tertiary Prince Creek 0 +41 Base of Permafrost 1285 -1244 Cretaceous Upper Schrader Bluff 1318 -1277 Cretaceous Middle Schrader Bluff 1855 -1814 Cretaceous Lower Schrader Bluff 2124 -2083 TD 2526 -2485 3.2 Mudlog Summary Top of Prince Creek to Upper Schrader Bluff Formation (Surface to 1318’ MD) The upper portion of the Prince Creek Formation is characterized by conglomeratic material mixed with loose sand as well as minor clay and scattered woody organics to approximately 1000 feet. At that point, the conglomerates are markedly diminished, and sand and clay content are roughly even. Clays gradually increase to approximately 75% of the formation at the base of this interval. Gas levels are very low. The sand is moderately to poorly sorted higher in the interval and moderately to well sorted in the deeper clayey portion of the interval. It consists of lighter quartz and dark gray siliceous lithics in roughly equal amounts, with slightly more quartz at depth. Quartz grains are subangular to angular while the lithics are subangular to subrounded. Conglomeratic pebbles are dominated by the dark lithics and are rounded to well rounded with polished surfaces. Occasional pyrite coatings on the dark lithics and rare pyrite cementation are visible in the samples. Scattered woody organic bits are often pyritic as well. The clays are medium gray with an amorphous, curd-like habit. Clayey clots are soft but exhibit excellent cohesion and plasticity. Drill Rate (ft/hr)Total Gas (units) Maximum Minimum Average Maximum Minimum Average 289 6 95 5 0 2 Gas Peaks (units): Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 (none) Individual sample descriptions are as follows: SAND/CONGLOMERATE (110 - 240)= samples consist entirely of loose sand, pebble chips and pebbles up to 2 inches, along with trace amounts of silica cemented sandstone and woody plant remains; the pebbles are Confidential AS.38.05.035 Qugruk-2 5 rounded with some polished surfaces, and the consist of assorted lithics and chert with lesser quartz; the majority of the lithics are very dark gray and siliceous, while other lithics and the chert are various shades of pale to very pale brown, dark red to reddish brown, and green to blue green; the sand is poorly sorted, with grain sizes ranges from very coarse- to upper fine-grained; grains are angular to subangular with moderate to poor sphericity; the composition of the sand is similar to the pebbles, although with more colored lithics than dark gray ones; woody bits are pyritic. SAND/CONGLOMERATE (250 - 330) =dark gray, black, grayish black, grayish red, light brown, moderate brown, light gray, white, translucent, clear; predominantly quartz sand matrix; cobble to very coarse to upper fine grain sand; poorly sorted throughout; very well rounded to subrounded with some slightly subangular in places; moderate to high sphericity; some grains appeared to be slightly frosted in places; abundant pyrite crystals throughout; predominantly unconsolidated quartz grain sand with abundant dark colored lithics. SAND/CONGLOMERATE (330 - 410)= samples consist of a dark gray slurry composed entirely of loose angular sand and rounded, polished gravel; the sand ranges from lower fine- to lower coarse-grained; pebbles are as large as two inches and grade into very coarse sand grains; pebbles mostly consist of very dark gray lithics with minor pale to dark orange lithics as well as tan to white quartz, chert, and rare sandstone; the sand is composed of quartz and dark gray lithics in roughly equal amounts. CONGLOMERATE/SAND (420 - 500)= mostly translucent to clear, with some white, light gray, dark gray, black, grayish black, brownish black, medium brown to light brown, light bluish gray and pale yellowish green; quartz grain sand matrix with abundant dark colored lithic fragments throughout; pebble to upper very coarse, with some medium to upper fine; poorly sorted; mostly well rounded quartz sand grains with some subrounded and subangular; moderate to high sphericity; some grains appeared to be slightly frosted in places; abundant secondary pyrite crystals throughout the sample. CONGLOMERATE/SAND (505 - 590)= clear to translucent, with some white, light gray to dark gray, black, grayish black, light brown to medium dark brown, and brownish gray; predominantly quartz grain sand matrix, with an abundant dark colored lithic fragments; pebble to upper very coarse through lower fine grained sand; poorly sorted; very well rounded to subrounded with some subangular to slightly angular; moderate to high sphericity; abundant secondary pyrite crystallization throughout the sample; some grains appeared to be slightly frosted in places; predominantly loose uncemented quartz sand; no petroleum indicators were observed. SAND (600 - 680)= predominantly clear to translucent, with some white to light gray with abundant very dark colored lithic fragments; mostly quartz grain matrix throughout; upper fine to coarse, with some very coarse clast size; poorly sorted; very well rounded to very angular with some subrounded to subangular; moderate sphericity; some sand grains appeared to be frosted in places; pyrite crystals and secondary pyrite crystallization abundant throughout the sample; no petroleum indicators were observed. SAND/CONGLOMERATE (680 - 770) =dark gray to gray, with some grayish black, black, and blackish gray, with translucent, clear, light gray and white, mostly quartz grain sand matrix throughout; large pebble to very coarse and coarse, with some medium and fine grained sand; poorly sorted; well-rounded to subrounded with some subangular to very angular; moderate sphericity; abundant pyrite crystals and secondary pyrite crystallization on quartz grains; predominantly loose uncemented quartz sand with abundant dark colored Confidential AS.38.05.035 Qugruk-2 6 lithic fragments throughout; some quartz grains appeared to be slightly frosted in places; no petroleum indicators were observed. SAND (770 - 900)= samples consist of a dark brownish gray fluid mass of loose sand with scattered one- quarter to half inch clots of light grayish brown clay and rounded pebbles; minor amounts of pyritic woody slivers appear in the bottom half or this interval, grading into shaly lignite with some thin black bituminous laminae; the sand is moderately to well sorted; the bulk of the sand is upper medium- to upper fine-grained, with some coarse- and lower fine-grained sand; the sand is composed of roughly equal amounts of siliceous dark gray lithics and very light gray translucent quartz; trace blue green glauconitic lithics and rare reddish orange lithics; grains are subrounded to subangular, though coarse grains are well rounded, and sphericity is moderate to poor; grains are chipped and abraded, and quartz grains are etched and pitted as well; pyrite coatings are common on organics and occasionally show up on dark lithics. SAND (900 - 1050)= samples consist of a dark gray fluid mass of loose sand with trace to minor clayey clots, pebbles, and slivers of woody organic material; the sand has a salt and pepper appearance as just over half of it consists of light quartz while the remainder consists of dark siliceous lithics; the sand is moderately to poorly sorted, with grain sizes ranging from fine- to very coarse-grained; the quartz is translucent and very light gray to rarely transparent and colorless, along with scattered light brown to orange grains; the lithics are mostly very dark gray to black, with trace blue green glauconitic lithics; trace amounts of pyrite coat the black lithics and can sometimes be found cementing sand grains together; quartz grains are angular to subrounded, while lithics are subrounded to subangular; coarser grains and pebbles tend to be rounded and polished; quartz grains display both polished and etched surfaces; pebbles are mostly comprised of the dark gray argillite, with lesser lighter chert and rare hard sandstone; the clay clots at the base of the interval are medium gray and exhibit excellent cohesion and plasticity. CLAY/CLAYSTONE (1065 - 1130)= samples consist of an olive gray fluid mass of clayey clots, loose sand and pea gravel; bulk samples are mushy to pasty, but the clayey curds display excellent cohesion and plasticity; the sand is still a salt and pepper mixture of light quartz and very dark gray lithics with minor blue green glauconite; pyrite is more abundant than in the above sands, to 2 or 3 percent; the gravels still consist of well-rounded dark gray lithics with minor quartz and well indurated sandstone. CLAY/CLAYSTONE (1130 - 1280)= samples consist of an olive gray to grayish brown fluid mass of clayey clots, loose sand and clay in suspension; aggregate samples are pasty and slimy, though the clayey curds exhibit excellent cohesion and plasticity; the clay is extremely pliant, and no structure is apparent; roughly two- thirds of the sand is comprised of translucent very light gray quartz, with the remainder consisting of dark, mostly gray lithics which impart a salt and pepper appearance to the sand; the gray lithics are hard and siliceous, and trace blue green glauconite is also present; the sand is moderately to well sorted, ranging from lower medium- to upper very fine-grained; the quartz is subangular to angular, the lithics are mostly subrounded, and all grains display moderate sphericity on average; quartz grain surfaces are etched and pitted; minor amounts of pyrite are present as crusts on the coarse lithics. SAND (1280 - 1318)= samples consist of a dark olive gray slurry of sand, clayey curds and clay in suspension; the sand is a moderately to well sorted lithic quartz sand with a salt and pepper appearance; the quartz is very light gray while the lithics are mostly very dark gray; the sand is upper medium- to lower fine-grained; grains are subangular to subrounded with moderate sphericity; quartz grains are etched and pitted; minor pyrite occurs as grain coatings and rarely cementing the sand. Confidential AS.38.05.035 Qugruk-2 7 Top of Upper Schrader Bluff Formation to Middle Schrader Bluff (1318’ – 1855’ MD) The Upper Schrader Bluff Formation from approximately 1,473 feet MD to 1,572 feet MD is mostly comprised of claystone with laminae of silty shale and thin lenses and/or laminae of sand. Sandy siltstone is abundant at the base of the interval. Gas levels remain very low. The claystones in this section are poorly indurated and medium olive gray when wet, with minor dark grayish brown laminae of silty shale and trace sand. When dry, the claystone is light yellowish gray and brittle to crumbly. Drill Rate (ft/hr)Total Gas (units) Maximum Minimum Average Maximum Minimum Average 289 6 95 5 0 2 Gas Peaks (units): Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 (none) The interval of the Upper Schrader Bluff Formation just above 1760 feet MD is comprised of alternating sequences of claystones, siltstones, and sands. Gas levels are still low but very slowly increasing. Sands in this interval consist of well sorted, very fine-grained quartz grading into silt. The typical siltstone in this section is dark grayish brown, poorly indurated and crumbly to pulverulent. Claystones are medium gray and similarly soft and crumbly, though very plastic when wet. Drill Rate (ft/hr)Total Gas (units) Maximum Minimum Average Maximum Minimum Average 201 18 101 16 1 4 Gas Peaks (units): Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 (none) The interval of the Upper Schrader Bluff Formation immediately beneath the 1760 feet is comprised of unconsolidated sand interbedded with and grading into lesser amounts of poorly indurated siltstone. Gas levels continue to slowly rise but are still modest through the upper 100 feet of the interval; in the bottom third of the interval, gas levels rise two orders of magnitude to 1000 units. Confidential AS.38.05.035 Qugruk-2 8 The sands in this interval are well sorted, very fine-grained quartz sands with minor lithics. The siltstone is dark grayish brown, poorly indurated, and crumbly to pulverulent. Drill Rate (ft/hr)Total Gas (units) Maximum Minimum Average Maximum Minimum Average 451 50 145 1471 7 254 Gas Peaks (units): Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 1895’ 1488 292737 - - - - - - Individual sample descriptions are as follows: SAND (1318 - 1350)= samples consist of a dark olive gray slurry of sand, clayey curds and clay in suspension; the sand is a moderately to well sorted lithic quartz sand with a salt and pepper appearance; the quartz is very light gray while the lithics are mostly very dark gray; the sand is upper medium- to lower fine-grained; grains are subangular to subrounded with moderate sphericity; quartz grains are etched and pitted; minor pyrite occurs as grain coatings and rarely cementing the sand. CLAY (1355 - 1482)= medium dark gray to light gray with some medium gray and medium bluish gray, and dark gray; pasty to slightly clumpy; very dense to somewhat malleable; irregular fracture; amorphous cuttings habit; predominantly dull to somewhat earthy luster; very clayey texture with some slightly gritty to silty; very thick beds of clay, interbedded with thinning lenses of quartz sand; predominantly the sand consists of white, and clear to translucent, loose uncemented, medium to upper very fine grain quartz sand matrix; no oil indicators were observed. CLAYSTONE (1482 - 1580)= Samples consist of 1 to 4 millimeter rounded wedges of medium olive gray claystone with minor finely ground, dark grayish brown flakes of silty shale and trace sand; when dry, the claystone is light yellowish gray and brittle to crumbly; fresh surfaces exhibit an earthy to waxy luster underlain by a smooth texture; microscopic bedding is perceptible, and some cuttings contain shaly laminae. SAND (1580 - 1655)= predominantly clear to translucent with some light gray, white, light brown, moderate brown, medium dark gray, grayish black, and black; mostly quartz grain sand matrix with abundant dark colored lithic fragments throughout; upper very fine to upper fine grain sand; moderate to well sorted; subrounded to rounded with some subangular to very angular; moderate sphericity; thicker beds of sand interbedded with thinning beds of clay/claystone and sandy siltstones; abundant pyrite crystals throughout; no petroleum indicators were observed.. SAND (1655 - 1770)= samples consist of a dark brown slurry of loose sand and disaggregated silt with sand- sized cuttings of siltstone; the sand is moderately sorted; though grain sizes range from lower very fine- to lower coarse-grained, the bulk of the sand is upper to lowermost very fine-grained and grades into silt; the sand and silt are almost entirely comprised of very light gray to pale yellow translucent quartz, along with trace to minor amounts of siliceous black lithics and rare pyrite; grains are subrounded to angular with moderate to poor sphericity, and grain surfaces are etched and pitted; samples are largely non-calcareous; Confidential AS.38.05.035 Qugruk-2 9 intact siltstone cuttings are rounded and amorphous; fresh surfaces are dark brownish gray and display a waxy to resinous luster underlain by a silty texture; very thin bedding is faintly perceptible. SAND (1770 - 1890)= samples consist of a dark brown slurry of slightly varying amounts of loose, disaggregated silt and sand with scattered small siltstone cuttings; bulk samples exhibit good to fair cohesion and negligible plasticity; when dry the material is pale brown; the sandy lenses and laminae are mostly moderately to well sorted with grain sizes mostly within the range of lower fine- to lowermost very fine- grained, grading into silt; less well sorted laminae contain minor upper fine- to lower coarse-grained sand; the sand and silt are largely composed of very light gray to pale yellow quartz; trace to minor black lithics tend to occur in the coarser fraction of the sand; intact siltstone is microscopic and subtly decreases with depth as gas levels rise. Top of Middle Schrader Bluff Formation to Lower Schrader Bluff (1855’ – 2124’ MD) The interval of the Middle Schrader Bluff formation from approximately 1,920 feet MD to 2,059 feet MD is comprised of unconsolidated silty sand with subordinate interbedded siltstone. Gas levels are very high, with background levels between 300 units to 700 units, and peaks above 1500 units. The lithologies in this interval are nearly identical to those in the prior interval. Sands are well sorted, very fine-grained quartz sands grading into silt, and siltstones are dark grayish brown and poorly indurated. Drill Rate (ft/hr)Total Gas (units) Maximum Minimum Average Maximum Minimum Average 281 37 127 1708 301 816 Gas Peaks (units): Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 1978’ 1708 352215 - - - - - - 2032’ 833 146777 - - - - - - This interval of the Middle Schrader Bluff formation from approximately 2,060 feet MD to 2,214 feet MD is comprised of interbedded unconsolidated sand and poorly indurated siltstone. The upper half of the interval is sand-rich, while the lower half has slightly more siltstone than sand. Gas levels are extremely high and correspond with sand content. In the sandy upper half, gas plateaus at over 2000 units; in the silty lower half, background gas levels range from roughly 200 units to 400 units. Lithologies continue to be similar to those in the intervals immediately above. Sands in this section are well sorted and consist of very fine-grained quartz which grades into silt. The siltstones are gray and crumbly to crunchy. Drill Rate (ft/hr)Total Gas (units) Maximum Minimum Average Maximum Minimum Average 231 41 102 2360 301 1067 Confidential AS.38.05.035 Qugruk-2 10 Gas Peaks (units): Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 2091’ 2360 489432 - - - - - - Individual sample descriptions are as follows: SAND (1990 - 2120)= samples consist of a dark brown slurry of loose sand with lesser disaggregated silt and sparse sand-sized siltstone cuttings; the bulk samples exhibit poor cohesion and no plasticity; samples are light yellowish gray and pulverulent when dry; the sand is a well sorted, very fine-grained quartz sand that grades into silt; aside from quartz, only traces of black and orange lithics can be seen in the sand; the black lithics are also sometimes visible within the rare intact siltstone cuttings; grains are subangular to angular with moderate sphericity on average; quartz grains surfaces are etched and pitted; fresh surfaces of the siltstone are dark grayish brown with a dull, waxy luster underlain by a smooth, silty texture; very thin bedding is perceptible; samples are non-calcareous; the sands are highly charged with gas hydrates. SAND (1990 - 2120) = samples consist of a dark brown slurry of loose sand with lesser disaggregated silt and sparse sand-sized siltstone cuttings; the bulk samples exhibit poor cohesion and no plasticity; samples are light yellowish gray and pulverulent when dry; the sand is a well sorted, very fine-grained quartz sand that grades into silt; aside from quartz, only traces of black and orange lithics can be seen in the sand; the black lithics are also sometimes visible within the rare intact siltstone cuttings; grains are subangular to angular with moderate sphericity on average; quartz grains surfaces are etched and pitted; fresh surfaces of the siltstone are dark grayish brown with a dull, waxy luster underlain by a smooth, silty texture; very thin bedding is perceptible; samples are non-calcareous; the sands are highly charged with gas hydrates. Top of Lower Schrader Bluff Formation to TD (2124’ – 2526’ MD) The short interval of the Lower Schrader Bluff Formation from approximately 2,215 feet MD to 2,239 feet MD is comprised of siltstone with sandy lenses and laminae. Gas levels are somewhat high, but are affected on the log by uneven circulation while pulling back to the shoe to circulate and cool the mud. The sands in this interval continue to consist of well sorted, very fine-grained quartz that grade to silt. Siltstones also remain similar to the soft, gray siltstones drilled through thus far. Drill Rate (ft/hr)Total Gas (units) Maximum Minimum Average Maximum Minimum Average 220 60 107 746 137 423 Gas Peaks (units): Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 2239 746 124017 ------ 2223 737 122648 ------ Confidential AS.38.05.035 Qugruk-2 11 Around 2215’ to 2239’ MD, there is sandy body which consists of loose sand and poorly indurated siltstone in roughly equal amounts. Gas levels once again plateau above 2000 units. The sands in this interval are very fine to fine and predominantly consist of quartz, with only minor to trace lithics. The siltstone is medium to dark gray and crumbly to crunchy. Drill Rate (ft/hr)Total Gas (units) Maximum Minimum Average Maximum Minimum Average 161 59 108 2101 743 1501 Gas Peaks (units): Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 2276 2101 222709 ------ 2253 1569 260594 ------ The interval of the Lower Schrader Bluff Formation from approximately 2,280 feet MD to the total depth of the well is comprised of alternating sequences of claystones, siltstones, and thinning lenses of sands. The upper portion of this interval contains small pebbles and a slight amount of claystone, and while the sands decrease with depth, the claystone becomes more abundant. Gas levels range from over 2000 units in the upper sandy portion of this interval to background levels slightly over 100 units at total depth. The Sagavanirktok “B” sand was not drilled into. The sands in this interval are moderately to poorly sorted, with grains ranging from small pebbles and pebble chips to very fine sand. Finer sand tends to consist of quartz while coarser grains contain slightly more dark lithics, and the pebbles mostly consist of dark lithics. The siltstone is dark gray, though slightly more indurated than those seen thus far in the well, with some slightly blocky and platy cuttings present. Drill Rate (ft/hr)Total Gas (units) Maximum Minimum Average Maximum Minimum Average 690 30 136 2102 57 488 Gas Peaks (units): Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 2283 2102 222766 ------ 2340 1577 156951 ------ 2583 444 85845 ------ Individual sample descriptions are as follows: SAND/SILTSTONE (2120 - 2220)= samples consist of a dark brown slurry of loose sand and silt with scattered tiny, intact cuttings of siltstone; siltstone content increases with depth; the lenses and laminae of sand are Confidential AS.38.05.035 Qugruk-2 12 well sorted and very fine-grained, grading into the siltstone; bulk samples exhibit moderate to poor cohesion and no plasticity; the sand and silt are predominantly composed of very light gray to yellowish gray quartz with minor black lithics; grains are subangular with moderate sphericity on average, and quartz grain surfaces are etched and pitted; the siltstone is soft and crumbly, with a waxy luster and a smooth texture. SILTSTONE (2230 - 2320) =medium dark gray to gray with some light gray and grayish black; slightly stiff to mostly clumpy; very crumbly to crunchy with some slightly brittle in places; mostly amorphous cuttings habit with some slightly platy; greasy to somewhat resinous luster with some slightly dull; predominantly silty with some very gritty; thinner beds of siltstones interbedded with thicker beds of sand; the sand consists predominantly of translucent to clear, very fine to fine grained quartz sand; the sand is mostly loose grain, uncemented throughout; some pyrite crystals throughout; no visible petroleum indicators were observed. SILTSTONE (2230 - 2320)= medium dark gray to gray with some light gray and grayish black; slightly stiff to mostly clumpy; very crumbly to crunchy with some slightly brittle in places; mostly amorphous cuttings habit with some slightly platy; greasy to somewhat resinous luster with some slightly dull; predominantly silty with some very gritty; thinner beds of siltstones interbedded with thicker beds of sand; the sand consists predominantly of translucent to clear, very fine to fine grained quartz sand; the sand is mostly loose grain, uncemented throughout; some pyrite crystals throughout; no visible petroleum indicators were observed. SAND (2325 - 2410)= predominantly clear to translucent, with some white, light gray to medium gray, and some dark gray to black; mostly quartz grain sand matrix with abundant dark colored lithic fragments thought the sample; upper very fine to lower medium grain sand with some coarse to very coarse and small pebble; poorly sorted; very well rounded to subrounded with some subangular to angular; moderate sphericity; thicker sand lenses interbedded with sandy siltstones and sandy to somewhat silty claystones; some pyrite crystals; no visible petroleum hydrocarbon indicators were observed. SILTSTONE (2430 - 2526) =dark gray to medium dark gray, with some light gray and medium light gray; mostly clumpy to somewhat pasty, with some slightly stiff in places; mostly brittle with some crumbly to crunchy; irregular fracture with some slightly blocky; predominantly amorphous cuttings habit with some very slightly platy; very earthy to somewhat dull with some waxy to greasy in places; predominantly silty texture with some very gritty; thicker siltstone beds, interbedded with thinning lenses of loose uncemented quartz sand; the sand consists of very fine to medium grained, fair to poorly sorted quartz sand matrix, with abundant dark colored lithic fragments. 3.3 Connection Gases 1 unit = 0.05% Methane Equivalent (No connection gases were observed.) 3.4 Trip (Wiper) Gases No trips were made prior to end of the well Confidential AS.38.05.035 Qugruk-2 13 3.5 Sampling Program / Sample Dispatch Washed and dried samples are contained within paper envelopes, and wet samples are in plastic Whirlpak® bags. Sampling interval was increased at the base of the permafrost. Set Type / Purpose Frequency Interval Dispatched to 1 Washed and dried reference samples Unwashed wet samples Set owner: REPSOL E&P 90’ 30’ 90’ 30’ 100’ – 1,450’ 1,450’ – 2,440’ 100’ – 1,450’ 1,450’ – 2,200’ Fugro Data Solutions Attn: Allen Rother (979) 562-2777 3311SouthUSHwy.77 P.O. Box 295 Schulenburg, Texas 78956 2 Washed and dried reference samples Set owner: REPSOL Madrid 90’ 30’ 100’ – 1,450’ 1,450’ – 2,440’ Fugro Data Solutions Attn: Allen Rother (979) 562-2777 3311SouthUSHwy.77 P.O. Box 295 Schulenburg, Texas 78956 3 Washed and dried reference samples Set owner: AOGCC 90’ 30’ 100’ – 1,450’ 1,450’ – 2,440’ AOGCC Attn: Howard Okland (907) 793-1235 333W.7th Avenue,Suite100 Anchorage, Alaska 99501 4 Headspace samples in IsoJars® Set owner: REPSOL E&P 90’ 100’ – 2440’ Fugro Data Solutions Attn: Allen Rother (979) 562-2777 3311SouthUSHwy.77 P.O. Box 295 Schulenburg, Texas 78956 5 Gas samples in IsoTubes® Set owner: REPSOL E&P at beginning of well sections and at selected gas peaks 0’ – 1672’ Fugro Data Solutions Attn: Allen Rother (979) 562-2777 3311SouthUSHwy.77 P.O. Box 295 Schulenburg, Texas 78956 6 Mud sample in IsoJars® Set owner: REPSOL E&P at casing shoes and when mud additives were introduced 1990’ Fugro Data Solutions Attn: Allen Rother (979) 562-2777 3311SouthUSHwy.77 P.O. Box 295 Schulenburg, Texas 78956 7 Unwashed paleontology samples Set owner: REPSOL E&P 90’ 30’ 100’ – 1,450’ 1,450’ – 2,200’ Fugro Data Solutions Attn: Allen Rother (979) 562-2777 3311SouthUSHwy.77 P.O. Box 295 Schulenburg, Texas 78956 Confidential AS.38.05.035 Qugruk-2 14 4 PRESSURE / FORMATION STRENGTH DATA Based on a regional pressure gradient, the pore pressure gradient (PPG) is estimated to be 0.455 psi/ft, or 8.8 ppg. 4.1 Pore Pressure Gradient Evaluation Formation Interval Primary Lithology (%) Seconda ry Litholog y (%) Pore Pressure (EMW)Trend Indicators MD (ft) TVDSS (ft) Min (ppg) Max (ppg)Trend Prince Creek 40%CG, 30%CS 30%CLST 0 +41 8.8 8.8 EVEN BG, MW U. Schrader B.70% CLST 30% SLTST, 10% SD 1318 -1277 9.2 9.2 EVEN BG, MW M. Schrader B.60% SD 40% SLST 1855 -1814 8.8 8.8 EVEN BG, MW L. Schrader B.60 % SLST 40% SD 2124 -2083 8.9 8.9 SLIGHT INCREASE BG, MW Total Depth 50% CLST 30% SD, 20% SLTST 2526 -2484 N/A N/A EVEN BG, MW NOTE: Sd = Sand, Clst = Claystone/Clay, Sltst = Siltstone, Sndst = Sandstone, Sh = Shale, Cs Conglomeratic Sand, Cg = Conglomerate 4.2 Quantitative Methods The primary indicators used for PPG evaluation were gas trends relative to mud weight (MW) and effective circulating density (ECD), including increases in background gas (BG), appearance and trends of connection gas (CG), and magnitudes of trip gas (TG) and wiper gas (WG). Regional pore pressure trends from sonic data, provided by ConocoPhillips, and surface manifestations of hole conditions were also considered. As a reference, PPG is calculated initially with a formula provided by Epoch, and then modified using the indicators described above, and DXC and resistivity (RES) data. The formula uses DX, ECD, and BG as measured by total ditch gas: PPG = ECD – (0.6-((.001*TLGSU)+(0.05*DX))) The formula has certain limitations, such that it does not allow for a PPG more than 1 ppg less than the ECD, and TLGSU must be differentiated from show gas and gas carried from over pressure zones, and is dependent on reliable DX data. However, the formula proved useful in helping formulate a PPG range, when estimating trends, as with DXC data, with data points in shale intervals. Confidential AS.38.05.035 Qugruk-2 15 5 DRILLING DATA 5.1 Daily Activity Summary 02/05/2012: Mudlogging unit spotted and supplied with electricity. 02/13/2012: Canrig personnel on site for unit ML056 rig up – rig move in progress. 02/14/2012: Secondary containment and berming under construction prior to moving rig over well. 5.2 Survey Data Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) Departure (ft) Vertical Section (ft) Dogleg Rate (o /100ft) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (tie-in) 30.70 0.00 0.00 30.70 0.00 0.00 0.00 0.00 74.92 0.06 85.56 74.92 0.00 0.02 0.00 0.14 169.57 0.04 85.56 169.57 0.01 0.11 0.021 0.02 258.80 0.13 163.22 258.80 0.09 0.17 -0.09 0.14 353.36 0.02 117.52 353.36 0.20 0.21 -0.20 0.12 447.81 0.19 167.52 447.81 0.36 0.26 -0.36 0.19 541.39 0.30 162.95 541.39 0.74 0.37 -0.74 0.12 634.95 0.19 152.23 634.95 1.11 0.51 -1.11 0.13 729.27 0.28 151.60 729.27 1.46 0.69 -1.46 0.10 821.73 0.36 148.69 821.73 1.90 0.95 -1.90 0.09 915.30 0.36 130.53 915.29 2.34 1.33 -2.34 0.12 1009.37 0.45 138.12 1009.36 2.81 1.80 -2.81 0.11 1103.12 0.48 129.04 1103.11 3.33 2.35 -3.33 0.08 1196.94 0.41 131.21 1196.93 3.80 2.91 -3.80 0.08 1291.21 0.35 134.04 1291.19 4.22 3.37 -4.22 0.07 1385.74 0.33 158.54 1385.72 4.68 3.67 -4.68 0.15 1421.28 0.25 134.71 1421.26 4.83 3.77 -4.83 0.40 1514.34 0.31 145.84 1514.32 5.18 4.05 -5.18 0.09 1607.64 0.32 144.97 1607.62 5.61 4.35 -5.61 0.01 1700.81 0.26 160.64 1700.79 6.03 4.57 -6.03 0.11 1794.72 0.26 148.18 1794.70 6.41 4.75 -6.41 0.06 1890.54 0.09 171.16 1890.52 6.66 4.88 -6.66 0.19 1984.53 0.25 182.92 1984.51 6.94 4.88 -6.94 0.18 2078.80 0.32 181.75 2078.77 7.41 4.86 -7.41 0.07 2169.71 0.35 194.83 2169.69 7.94 4.78 -7.94 0.09 2266.43 0.44 210.71 2266.40 8.55 4.51 -8.55 0.15 2363.24 0.45 227.55 2363.21 9.13 4.04 -9.13 0.14 2457.01 0.53 228.08 2456.97 9.67 3.44 -9.67 0.09 2550.39 0.52 218.59 2550.35 10.29 2.85 -10.29 0.09 Confidential AS.38.05.035 Qugruk-2 5.3 Bit Record Bit # Size Make Type / Serial # Jets / TFA Depth In MD/TVD Total Footage Bit Hrs Avg. ROP (ft/hr) Avg. WOB (Klbs) Avg RPM Avg PP (psi) Wear BHA # 1 16”Hughes Christensen MX-1 5206063 1x14 3x18 / 1.117 99’/99’ 2427’1.8 102 2.4 71 444 (not graded)BHA #1 5.4 Mud Record Contractor: MUD COMPANY Mud Type: Gel Spud Mud Date Depth/TVD MW VIS PV YP Gels FL FC Sol O/W Sd pH Alk Cl Ca 2/12/2012 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 2/13/2012 1092’/1092’9.1 95 17.00 34 26/38/45 - - - - - - - - - 2/14/2012 1387’/1387’9.1 115 1 17.00 43 4 28/29/35 - - - - - 9.5 - 400,000 180,000 2/14/2012 1765’/1765’9.2 110 22.00 41 24/42/45 - - - - - 9.5 - 400,000 120,000 2/14/2012 2133’2133’ 9.2 101 21.00 29 22/43/47 - - - - - 9.5 - 500,000 600,000 2/15/2014 2133’/2133’9.2 101 21.00 29 22/43/47 - - - - - 9.5 - 5,000,000 600,000 Abbreviations MW=MudWeight Gels=Gel Strength O/W = Oil to Water ratio Ca = Calcium (Hardness) VIS = Funnel Viscosity FL = Filtrate (Fluid) Loss Sd = Sand Content (%) ECD = Effective Circulating Density PV = Plastic Viscosity FC=FilterCake Alk = Alkalinity YP = Yield Point Sol =Solids(%) Cl = Chloride Confidential AS.38.05.035 Qugruk-2
