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Home My WebLink AboutCO 685 AINDEX CONSERVATION ORDER NO. 685A Hemlock Oil Zone Lower Tyonek "G" Oil Zone Lower Tyonek "G" Upper Zone Exploratory Well Kenai Peninsula Borough, Alaska 1. May 1, 2014 CIE's request to amend CO 685 2. May 8, 2014 Notice of Public Hearing, Affidavit of Publication, email distribution, and mailings 3. May 8, 2014 Email re: public comment 4. June 10, 2015 Annual production logging information INDEX CONSERVATION ORDER NO. 685A ORDERS • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Cook Inlet Energy, LLC for authorization under 20 AAC 25.215(b) to amend Conservation Order No. 685 to authorize an additional zone for the downhole commingling of production in the Sword No. 1 well (PTD 213-080). IT APPEARING THAT: Docket Number: CO-14-011 Conservation Order No. 685A Hemlock Oil Zone Lower Tyonek "G" Oil Zone Lower Tyonek "G" Upper Zone Exploratory Well Kenai Peninsula Borough, Alaska June 26, 2014 1. By email received May 1, 2014, Cook Inlet Energy, LLC (CIE) requested an amendment to Conservation Order 685 (CO 685) under 20 AAC 25.215(b) to add the Lower Tyonek "G" Upper Oil Zone as a interval approved for downhole commingling with the Hemlock and Lower Tyonek "G" Oil Zones in the Sword No. 1 exploratory well. 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for June 19, 2014. On May 8, 2014, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, and electronically transmitted the notice to all persons on the AOGCC's email distribution list. On May 9, 2014, the AOGCC mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list and published the notice in the ANCHORAGE DAILY NEWS. 3. No protest to the application or request for hearing was received. 4. Because CIE provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. 5. The tentatively scheduled hearing was vacated on June 10, 2014. FINDINGS: 1. CIE is the operator of the Sword No. 1 exploratory well, located on the west side of the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. The Sword No. 1 is a deviated exploratory well with an onshore surface location 2,195 feet from the south line and 1,860 feet from the west line of Section 16, Township 8 North, Range 14 West, Seward Meridian (S.M.). The offshore bottom -hole location is approximately 2,610 feet from the north line and 646 feet from the west line of Section 2, Township 8 North, Range 14 West, S.M. 3. The surface location of Sword No. 1 is situated on acreage owned by Cook Inlet Region, Inc. (CIRI). The bottom -hole location of the well lies within State of Alaska lease ADL 17602 Segment 1. Conservation Order No. 685A June 26, 2014 Page 2 of 3 4. Testing of the Lower Tyonek "G" Upper Zone, which was initially thought to be a gas prone zone, showed that it actually contains producible quantities of oil. 5. The Lower Tyonek "G" Upper Oil Zone lies 171 feet above the Lower Tyonek "G" Oil Zone. 6. Due to ongoing production from the Lower Tyonek "G" Oil Zone the reservoir pressure of the shallower Lower Tyonek "G" Upper Oil Zone is approximately 100 psi higher than the Lower Tyonek "G" Oil Zone (3,517 and 3,409 psi respectively). 7. The Lower Tyonek "G" Upper Oil Zone has similar rock properties to The Lower Tyonek "G" and Hemlock Oil Zones. 8. The productive intervals in the Sword No. 1 well lie on two State of Alaska leases, ADL 359111, which is in the existing West McArthur River Unit (WMRU), and ADL 17602, which is immediately adjacent to the WMRU. 9. On August 23, 2013, the AOGCC issued Conservation Order 675, which approved a spacing exception under 20 AAC 25.055(a)(1) to allow the Sword No. 1 well to test for and produce oil within 500 feet of a property line where ownership or landownership changes. 10. The Sword No. 1 is currently producing from the Hemlock Oil Zone and Lower Tyonek "G" Oil Zone. Cumulative production through April 2014 was approximately 76 MBO and the well has averaged approximately 600 BOPD over its life. 11. The Lower Tyonek "G" Upper Oil Zone tested at approximately 300 BOPD during a 3- day test and it was determined by CIE that this rate would not justify a standalone well of the departure necessary to reach the accumulation. 12. Production from the Sword No. 1 can be allocated by several methods. First would be comparing the production rates from the commingled Hemlock and Lower Tyonek "G" Oil Zones production that is currently occurring to the commingled production that would occur once the Lower Tyonek "G" Upper Oil Zone is opened to production. Second, would be to conduct periodic production logging. Finally, the production could be allocated based on geochemical analyses. CONCLUSIONS: Based upon the current reservoir pressure in the Lower Tyonek "G" Upper Oil Zone and the Lower Tyonek "G" Oil Zone in the Sword No. 1 well, the similar reservoir properties, and the close proximity of the two Tyonek zones, allowing the Lower Tyonek "G" Upper Oil Zone to be commingled with the Lower Tyonek "G" and Hemlock Oil Zones previously approved for commingling will result in minimal crossflow among the three zones. 2. Commingling production from the three zones will increase the flowrate from the well and thus improve the economics for the well, which will prevent waste and lead to increased ultimate recovery from the well as compared to producing the zones separately. 3. Allocating production initially based on a comparison of surface flow tests conducted before and after the sliding sleeve over the Lower Tyonek "G" Upper Oil Zone is opened and then by conducting periodic production logging to adjust the allocation as production characteristics change will provide acceptable production allocation among the three zones. Conservation Order No. 685A • • June 26, 2014 Page 3 of 3 NOW THEREFORE IT IS ORDERED: Pursuant to AS 31.05.030 and 20 AAC 25.215(b), the downhole commingling of production among the Hemlock, Lower Tyonek "G", and Lower Tyonek "G" Upper Oil Zones in the Sword No. 1 is hereby approved with the following conditions: 1. Initial production allocation among the three zones shall be based upon a comparison of well tests conducted before and after a new zone is brought into production. 2. The operator shall conduct production logs on at least a yearly basis and adjust the allocation of production among the Hemlock, Lower Tyonek "G", and Lower Tyonek "G" Upper Oil Zones. 3. Copies of all tests and logs used for determining allocation of production shall be submitted to the AOGCC within 30 days. Unless notice and public hearing are otherwise required, upon proper application the AOGCC may administratively amend this order as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. DONE at Anchorage, Alaska and dated June 26, 2014.E Cathy . Foerster Daniel T: Seamount, Jr. Chair, Commissioner Commissioner sFR` `�TION CO� RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 mm. on the next day that does not fall on a weekend or state holiday. Singh, Angela K (DOA) From: Carlisle, Samantha J (DOA) Sent: Thursday, June 26, 2014 3:28 PM To: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody 1 (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Ferguson, Victoria L (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Hill, Johnnie W (DOA); Hunt, Jennifer L (DOA); Jackson, Jasper C (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Wallace, Chris D (DOA); (michael j.nelson@conocophillips.com); AKDCWellIntegrityCoordinator, Alexander Bridge; Andrew Vandedack, Anna Raff; Barbara F Fullmer, bbritch; bbohrer@ap.org; Barron, William C (DNR); Bill Penrose; Bill Walker, Bob Shavelson; Brian Havelock; Burdick, John D (DNR); Cliff Posey; Colleen Miller, Crandall, Krissell; D Lawrence; Daryl J. Kleppin; Dave Harbour; Dave Matthews; David Boelens; David Duffy; David Goade; David House; David McCaleb; David Scott; David Steingreaber; David Tetta; Davide Simeone; ddonkel@cfl.rr.com; Donna Ambruz; Dowdy, Alicia G (DNR); Dudley Platt; Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer, Frank Mol►i; Gary Schultz (gary.schultz@a►aska.gov); George Pollock; ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; gspfoff, Jacki Rose; Jdarlington oarlington@gmail.com); Jeanne McPherren; Jerry McCutcheon; Jim White; Joe Lastufka; news@radiokenai.com; Easton, John R (DNR); John Garing; Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett, Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Keith Wiles; Kelly Sperback; Klippmann; Gregersen, Laura S (DNR); Leslie Smith; Lisa Parker, Louisiana Cutler, Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark P. Worcester, Mark Wedman; Kremer, Marguerite C (DNR); Michael Jacobs; Michael Moora; Mike Bill; mike@kbbi.org; Mikel Schutz; Mindy Lewis; M1 Loveland; mjnelson; mkm7200; Morones, Mark P (DNR); knelson@petroleumnews.com; Nick W. Glover, Nikki Martin; NSK Problem Well Supv; Oliver Sternicki; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Randy Redmond; Rena Delbridge; Renan Yanish; Robert Brelsford; Ryan Tunseth; Sandra Haggard; Sara Leverette; Scott Griffith; Shannon Donnelly, Sharmaine Copeland; Sharon Yarawsky, Shellenbaum, Diane P (DNR); Slemons, tonne D (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Steve Kiorpes; Moothart, Steve R (DNR); Suzanne Gibson; sheffie►d@aoga.org; Tania Ramos; Ted Kramer, Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Thor Cutler, Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Walter Featherly; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman; Bruce Williams; Bruno, Jeff 1 (DNR); Casey Sullivan; David Lenig; Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr, Smith, Graham O (PCO); Greg Mattson; Hans Schlegel; Heusser, Heather A (DNR); Holly Pearen; lames Rodgers; Jason Bergerson; Jennifer Starck; jill.a.mc►eod@conocophillips.com; Jim Magill; Joe Longo; John Martineck; Josh Kindred; Kenneth Luckey; King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck; Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill; Franger, lames M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Peter Contreras; Richard Garrard; Richard Nehring; Robert Province; Ryan Daniel; Sandra Lemke; Pexton, Scott R (DNR); Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Terence Dalton; Todd, Richard J (LAW); Tostevin, Breck C (LAW); Wayne Wooster, Woolf, Wendy C (DNR); To: William Hutto; William Van Dyke 0 Subject: Conservation Order 685A (Sword No. 1, Cook Inlet Energy) Attachments: co685a.pdf Please see attached. Samantha CarCisCe Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542 (fax) 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 Samantha Carlisle at (907) 793-1223 or Samantha.Carlisle@alaska.gov. 1130+*-I%r ZIP- L SM Penny Vadla George Vaught, Jr. Jerry Hodgden 399 W. Riverview Ave. Post Office Box 13557 40818t n Oil Company t. Soldotna, AK 99669-7714 Denver, CO 80201-3557 Golden, S Golden, CO 80401-2433 Bernie Karl CIRI North Slope Borough K&K Recycling Inc. Land Department Planning Department Post Office Box 58055 Post Office Box 93330 Post Office Box 69 Fairbanks, AK 99711 Anchorage, AK 99503 Barrow, AK 99723 Richard Wagner Gordon Severson Jack Hakkila Post Office Box 60868 3201 Westmar Cir. Post Office Box 190083 Fairbanks, AK 99706 Anchorage, AK 99508-4336 Anchorage, AK 99519 Tim Jones Darwin Waldsmith James Gibbs Staff Landman Post Office Box 39309 Post Office Box 1597 Cook Inlet Energy, LLC Ninilchik, AK 99639 Soldotna, AK 99669 601 W. 5th Ave., Ste. 310 Anchorage, AK 99501 INDEXES GLACIER July 12, 2016 Ms. Cathy P. Foerster Chair, Commissioner Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Subject: Docket Number: CO-14-011 Conservation Order No. 685A Dear Ms. Foerster, JUL 12 Z016 AOGGO Glacier Oil and Gas (GLR) on behalf of Cook Inlet Energy (CIE) provides the Commission with the following production logging information pertaining to the Conservation Order No. 685A as required on an annual basis. Sword # I is currently producing from three zones namely the Hemlock Zone, Lower Tyonek "G" Oil Zone and the Lower Tyonek "G" Upper Zone (Attachment 1). A timeline of the commingling process is presented to the Commission (Attachment 2). A pressure/temperature memory tool was hung of the standing valve of the jet pump during April 2016 and pressures/temperatures were recorded. A pressure and temperature profile for static and flowing conditions for the following scenario is presented to the Commission. • Hemlock Zone, Tyonek "G" Oil Zone and the Lower Tyonek "G" Upper Zone with Oil Master Jet Pump 13A (Attachment 3) Page 1 of 4 601 West 5th Avenue, Suite 310, Anchorage, AK 99501 Main (907) 334-6745 1 Fax (907) 334-6735 GLACIER • Hemlock Zone and Lower Tyonek "G" Oil Zone with Oil Master Jet Pump 12A (Attachment 4) A surface flow test was conducted when all three zones were open to flow (Attachment 5). A surface flow test was also conducted where the Lower Tyonek "G" Upper Zone was shut off to production which was accomplished by closing the sliding sleeve while still utilizing the same jet pump nozzle to throat ratio (Attachment 6). This test determined the commingled production rate from the other two zones namely the Hemlock Zone and Lower Tyonek "G" Oil Zone The Hemlock Zone and Lower Tyonek "G" Oil Zone production was further allocated based on alternate engineering methods. Due to the static nature of the well, when the well was shut in and access to the perforations was obtained after removal of the jet pump and standing valve, conventional production logging methods like the spinner survey was not successful. A geochemical analysis was also not possible due to the mixing of large volumes of power oil with the reservoir fluids needed to produce the well. Due to limitation on the amount of injectable power fluids at the surface, the nature of the a smaller 2-1/2" jet pump and no increase in bottom hole pressure after commingling of the zones, the reservoir was unable to provide any incremental flow rates to aid the jet pump in increasing flow rates after commingling. Even though limited by the 2-1/2" jet pump, a larger nozzle throat ratio 13A was installed in the jet pump to boost throughput. The allocation between the Hemlock and the Lower Tyonek "G" Oil Zone was determined by using areal extent of reservoirs (Attachment 7 and Attachment 8) and the amount of individual perforations open to flow; i.e. allocation is based on the volumetric ratios of the zones open to flow. Attached is also the areal extent of the Lower Tyonek "G" Upper Zone (Attachment 9). A summary sheet of the areal extent of the Sword #1 reservoirs is presented to the Commission (Attachment 10). Page 2 of 4 601 West Sth Avenue, Suite 310, Anchorage, AK 99501 Main (907) 334-6745 1 Fax (907) 334-6735 GLACIER Based on the data presented to the Commission, CIE is revising allocated production to the commingled zones as follows: Name of the Zone Oil Allocation Ratio Water Allocation Ratio Hemlock Zone 0.64 0.83 Lower Tyonek "G" Oil Zone 0.01 0.02 Lower Tyonek "G" Upper Zone 0.34 0.15 CIE is currently in the process of performing a work over operation in Sword # 1 well. This work over operation has been outlined in our sundry approval 316-298. The existing jet pump completion will be converted to an Electronic Submersible Pump (ESP) completion in order to achieve more drawdown, better productivity and an opportunity to reduce skin via cleanup and fishing operation from the producing zones. The ESP will be placed above the current (3) producing zones as the new means of artificial lift (Attachment 11). Due to the static nature of the well and no access to the perforations after install of the ESP, use of permanent allocation ratios throughout the life of the well is requested. These allocation ratios are based on Areal extent of the reservoir as well as amount of perforations open to flow for the individual zones. These allocation ratios will be revised whenever there is an opportunity to access the wellbore during a work over operation. The permanent allocation ratios will be presented to the Commission after successful completion of the work over operation. CIE respectfully submits this report to satisfy the annual requirement as outlined in Conservation Order No. 685A and also requests the Commission use of permanent allocation ratios moving forward after the ESP install. CIE will continue to monitor these allocations during the life of the well when access to the perforations is possible and will request any allocation changes to the Commission as warranted. If any additional Page 3 of 4 601 West 50) Avenue, Suite 310, Anchorage, AK 99501 Main (907) 334-6745 1 Fax (907) 334-6735 I GLACIER information is required in this matter, please don't hesitate to contact me at (907) 433- 3822. Sincerely, i D vid Kumar , roduction Manager Attachments 1. Sword # 1 Current Well Completion 2. Timeline of Commingling 3. Pressure and Temperature Data for Hemlock, Lower Tyonek "G" Oil Zone and Lower Tyonek "G" Upper Zone with Oil Master Jet Pump 13A 4. Pressure and Temperature Data for Hemlock Zone and Lower Tyonek "G" Oil Zone with Oil Master Jet Pump 13A 5. Surface Flow Test for all three zones, Hemlock, Lower Tyonek "G" Oil Zone and Lower Tyonek "G" Upper Zone with Oil Master Jet Pump 13A 6. Surface Flow Test for the Hemlock and Lower Tyonek "G" Oil Zone commingled with Oil Master Jet Pump 13A 7. Areal Map of the Hemlock Zone 8. Areal Map of the Upper Tyonek "G" Oil Zone 9. Areal Map of the Lower Tyonek "G" Upper Zone 10. Summary Sheet of Areal Extent of the Sword #1 Zones 11. Proposed Sword # 1 Well Completion after ESP Install Page 4 of 4 601 West S111 Avenue, Suite 310, Anchorage, AK 99501 Main (907) 334-6745 1 Fax (907) 334-6735 Attachment 1: Sword #01 Current Well Completion SWORD-01 - Final Wellbore Schematic Date: 10-May-16 Version: Final 20" Conductor JA 16" Hole TOL @ 9,80T MD / 5.180' ND 12 1/4" Hole Tyonek Upper Oil Zone Perforations MD TW FT 16827-16839 90059014 12 16853-16871 90249037 18 Tyonek G Oil Zone Perforations MD TVD FT 17108-171" 9208-9234 36 TOL @ 17,202' MD / 9,276' ND 8 1/2" Hole Hemlock Perforations MD TVD FT 17601-17604 (9562-9564) 3 17630-17634 (9583-9585) 4 176%17662 (9603-9605) 3 17666-17670 (9608-9611) 4 17703-17708 (9635-9639) 5 17712-17717 1 (9641-9645) 5 17732-17748 (9656-9667) 16 17836-17886 (9733-9771) 50 17910-17932 (9790-9807) 22 17944-17948 (9817-9820) 4 17962-18004 (9831-9865) 42 18042-18052 (9896-9904) 10 Total Pens 168 6 1/8" Hole- 18,475' MD / 10,255' TVD TRSSSV w/ 1/4" SS Control Line @ 158' MD/rVD 20" 1 133# K55 123' MD ID-18.00" 1 Welded 123' ND Chemical Injection Mandrel w/ 3/8" SS Control Line @ 1,996' 13 3/8" 68# L-80 2,387' ND to - 12.25 1 BTC 3,020' MD 9'D t0,142' M9 5/8" -80 5,74 BTC-M N ID - 8.50D 3-1/2" 12.95# P-110 PH6 Tubing - ID- 2.75" X/O - 3-1 /2" PH6 to 2-7/8" 6.5# EUE L-80 TBG @ 16,114' MD / 8,483' ND 2-7/8" 6.5# L-80 EUE Tubing - ID - 2.441" - 2-7/8" Kobe -Weatherford Jet Pump @ 16,429' MD - 2.245" ID - Hydraulic Set Retrievable Packer @ 16,508' MD / 8,774' ND .-... 2-7/8" Non Elastomer Sliding "R" Sleeve @ 16,554' - 2.188" ID Halliburton Y-Block TCP Perf Guns - 2", 6SPF, 0-Phase @ 16,821' MD 7" Model D Permanent Packer @ 16,980' MD / 9,116' ND 2-7/8" R-Nipple @ 17,034' MD - 2.188" ID 3� Severed Tubing RCT Cut on 4/8/14 @ 17,057' Fish 2 - 2-7/8" 6.5# L-80 EUE Tubing - 489' @ 17,372' 7" 29# L-80 1 9,472' ND 125" ID - 6.'BTC I 17,476' MD Fish 1 - Hemlock TCP Assembly - 451' @ 17,888' - Dropped on Firing 5" 18# L-80 10,255' ND ID - 4,276" 1 BTC 18,475' MD Attachment 2:Timeline of Commingling AOGCC Nomenclature Perforated Interval Thickness (MD) Hemlock 168' Lower Tyonek "G" Upper Zone 30' Lower Tyonek "G" Oil Zone 36' Date Perforated 11/16/13 4/2/14 4/9/14 Commingling Status Production Date Start Production Date End Comments Hemlock Only 11/17/13 4/1/14 Lower Tyonek "G" Upper Zone Only 4/2/13 4/6/14 Hemlock and Lower Tyonek "G" Oil Zone 4/9/14 4/27/14 As per Conservation Order 685 Hemlock, Lower Tyonek "G" Upper and Lower Tyonek "G" Oil Zone 4/28/14 Current As per Conservation Order 685A CIE 1 of 1 5/27/15 Attachment 3: Pressure and Temperature Data Hemlock, Lower Tyonek "G" Oil Zone and Lower Tyonek "G" Upper Glacier Oil Well: Sword #1 Field: West Mac 04/29/2016 3500 ---- -__ — _� 205 3000 2500 rn 2000 CL 500 0 -I I i I I i 10 20 30 40 50 60 Report date: 7/11116 Gauge at depth 16435' RKB 70 80 90 100 110 120 Time (hrs) CPressure -Temperature 185 165 145 tL d 0 125 Attachment 4: Pressure and Temperature Data Hemlock and Lower Tyonek "G" Oil Zone Glacier Oil Well: Sword #1 Field: West Mac 05/05/2016 205 3500 185 3000 Gauge at depth 16435' RKB 165 2500 145 t31 N 2000 p a � y 125 q! M L 1500 d O. IL105 H 1000 85 500 65 45 0 0 10 20 30 40 50 60 70 80 Time (hrs) —Pressure —Temperature Report date: 7/11/16 Attachment 5: Sword#1 Surface Well Tests All Zones DATE 5/3/16 WELL SWD 1 TEST TIME 3 HR. PWR. PSI. 3800 TANK #1 TANK #2 TANK #3 TANK #4 TOTAL Increase power oil power oil Water Water FT IN FT IN FT IN FT IN BBL. BBL. BBL. RATE HR. Meter Increase starting strap 2 0 1 9 75.0 3,371 594 1 hour 7 5 6 10 284.8 209.8 3,559 630 36.00 2 hour 13 0 11 6 489.8 204.9 3,745 663 33.00 3 hour 17 7 16 5 679.7 189.9 3,928 695 32.00 TOTAL BBL. (-) starting strap TOTAL BBL. PWR. OIL TOTAL BBL.FOR 2 HR. TEST TOTAL BBL. EST FOR 24 HR. Choke Set Pumps Treater closed 451,452,472 120 TESTED BY: I Tim Ophus T-905 start 17.06 18:30 T-905 end 7.93 21:30 604.7 557.0 47.7 381.5 Water inc. 3 hour 101.00 Water est. 24 hours 808.00 Attachment 6: Sword#1 Surface Well Tests Hemlock and Lower Tyonek "G" Oil Zone DATE 5/7/16 WELL SWD 1 TEST TIME 3 HR. PWR. PSI. 3800 TANK #1 FT IN starting strap 1 hour 2 hour 3 hour TANK #2 TANK #3 TANK #4 TOTAL Increase power oil power oil Water Water FT IN FT IN FT IN BBL. BBL. BBL. RATE HR. Meter Increase 1 3 1 2 48.3 757 6 10 5 10 253.2 204.8 9470116 145 29.00 11 6 10 7 441.4 188.3 1,134174 29.00 16 0.5 16 0 640.6 199.1 1,318202 28.00 TOTAL BBL. (-) starting strap 592.2 Water inc. 3 hour 86.00 TOTAL BBL. PWR. OIL 561.0 Water est. 24 hours 688.00 TOTAL BBL.FOR 2 HR. TEST 31.2 TOTAL BBL. EST FOR 24 HR, 249.9 Choke Set Pumps Treater 451,452,472 120 TESTED BY: I Tim Ophus /AJ Ewing Cook Inlet EeW Attachment 7: Areal Map of the Hemlock Zone Sword Lwr Tycnek - Hemlock Slob _!�P—Tc �A— Raffia SrAls - i : I ZOOO errs ra�s� 1000 1000 FEET YmeoLs Dry now ey.. ONO KrWWW AM" 2!k 2014 Cook Inlet Eergy Attachment 8: Areal Map of the Lower Tyonek "G" Upper Zone Sword Lwr Tyonek ON Sd V Sword PrOsPed Aron _.�. Ratio Sawa - I: izew FEET POSTED V ELL DATA • FUTOPa - e_alOr rq (a) MT) - ` . ON Val ¢ CW0"so _ 1 y f i Cook Inlet Eergy Sword Lwr Tyonek (Upr)Oi7 Sd 9wad irosped Arm Hato Scala - I: IZ000 FEET POSTED WELL DATA ` i FUTOPB- O)QLK) (SS) €W" WELL SYMBOLS • q NM ON H* _ _ By_Grp IGAdard Attachment 9: Areal Map of the Lower Tyonek "G" Upper Zone / /A I Ve Cis am is I Attachment 10: Summary Sheet of the Areal Extent of the Sword # 1 Zones Potential Productive Areas Sword Productive Formations Proven Limits to LKO Most Likely Maximum to HKW Reservoir Sec 3 Sec 2 Sec 3 Sec 2 Sec 3 Sec 2 Lwr Tyonek (Upr) 34.6 40.8 Lwr Tyonek Oil 7.1 12.8 29.4 35.5 74.4 85 Hemlock Oil 97.5 104.9 Attachment 11: Sword #01 Proposed ESP Completion Date: 23-May-16 SWORD-01 - Proposed ESP Wellbore Schematic Version: 1.0 I � Tubing Hanger - 3-1/2" PH6 Thread - ID - 2.992" X/O - 3-1/2" PH6 to 3-1/2" EUE 3-1/2" 9.3# L80 EUE Tubing - ID - 2.992" 20" 133# K56 123' MD 20" CODdUCYOr ID - 18.00" Welded 123' ND 16" Hole TOIL @ 9,807' MD / 5,180- ND 12 1/4" Hole T onek U per Oil Zone Perforations MD TVD FT 16827-16839 9005-9014 12 16853-16871 9024-9037 18 T onek G Oil Zone Perforations MD I . T FT 17108-17144 1 9208-9234 1 36 TOIL @ 17,202' MD / 9,276' ND 8 1/2" Hole Hemlock Perforations MD TVD FT 17601-17604 (9562-9564) 3 17630-17634 (9583.9585) 4 17659-17662 (9603-9605) 3 17666-17670 (9608-9611) 4 17703-17708 (9635-9639) 5 17712-17717 (9641-9645) 5 17732-17748 (9656-9667) 16 17836-17886 (9733-9771) 50 17910-17932 (9790-9807) 22 17944-17948 (9817-9820) 4 17962-18004 (9831-9865) 42 18.42-18052 (98969904) 10 Total Perfs 168 6 1/8" Hole - 18,475' MD / 10,255' ND I?' ID 31 Y 25" 68BTC 0 3 020' MD X/O - 3-1/2" EUE to 2-7/8" 6.5# L80 EUE Tubing @ 6,500' MD -, u- , l '" --- 2-7/8" 6.5# L80 EUE Tubing - ID- 2.441" Dual 3/8" Stainless Flat Pack Lines 9 518" 47# L-80 5,749' ND ID - 8.50" BTC-M 10,142' MD ESP Assembly Top +/- 16,350' MD — - ELECTRIC SUBMERSIBLE PUMP (ESP) ESP #1 Flat Pack Cable Discharge Unit Assembly Pump Assembly Seal Assembly - Upper/ Lower Seals Motor / Motor Gauge Unit Centralizer Chemical Injection Check Valve Anode "------- ESP Assembly Bottom +/-16,500'MD 7" 1 29# L-80 9,472' ND ID - 6.125" I BTC 17,476- MD Fish 1 - Hemlock TCP Assembly - 451' @ 17,888' - Dropped on Firing 5" 18# L-80 10,255- ND ID - 4.276" BTC 18,475- MD Cook Inlet Energy_ June 10, 2015 Ms. Cathy P. Foerster Chair, Commissioner Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Subject: Docket Number: CO-14-011 Conservation Order No. 685A Dear Ms. Foerster, Cook Inlet Energy (CIE) provides the Commission with the following production logging information pertaining to the Conservation Order No. 685A as required on an annual basis. Sword #1 is currently producing from three zones namely the Hemlock Zone, Lower Tyonek "G" Oil Zone and the Lower Tyonek "G" Upper Zone (Attachment 1). A timeline of the commingling process is presented to the Commission (Attachment 2). A pressure/temperature memory tool was hung of the standing valve of the jet pump and pressures/temperatures were recorded before and after the commingling process. Pressure and temperature profiles for the following scenarios are presented to the Commission. • Hemlock Zone with Oil Master Jet Pump 12A (Attachment 3) • Lower Tyonek "G" Upper Zone with Oil Master Jet Pump 12A (Attachment 4) • Hemlock Zone and Lower Tyonek "G" Oil Zone with Oil Master Jet Pump 12A (Attachment 5) Page 1 of 4 Cook Inlet Energy_ • Hemlock Zone, Tyonek "G" Oil Zone and the Lower Tyonek "G" Upper Zone with Oil Master Jet Pump 13A (Attachment 6) Surface flow tests were conducted when all three zones were open to flow (Attachment 7). A surface flow test was also conducted with the Lower Tyonek "G" Upper Zone shut off to production by closing the sliding sleeve while still utilizing the same jet pump nozzle to throat ratio (Attachment 8). This contributed to the commingled production rate from the other two zones namely the Hemlock Zone and Lower Tyonek "G" Oil Zone The Hemlock Zone and Lower Tyonek "G" Oil Zone production was further allocated based on alternate engineering methods. Due to the static nature of the well, when the well was shut in and access to the perforations was obtained after removal of the jet pump and standing valve, conventional production logging methods like the spinner survey was not successful. A geochemical analysis was also not possible due to the mixing of large volumes of power oil with the reservoir fluids needed to produce the well. Due to limitation on the amount of injectable power fluids at the surface, the nature of the a smaller 2-1 /2" jet pump and no increase in bottom hole pressure after commingling of the zones, the reservoir was unable to provide any incremental flow rates to aid the jet pump in increasing flow rates after commingling. Even though limited by the 2-1/2" jet pump, a larger nozzle throat ratio 13A was installed in the jet pump to boost throughput. The allocation between the Hemlock and the Lower Tyonek "G" Oil Zone was determined by using areal extent of reservoirs (Attachment 9 and Attachment 10) and the amount of individual perforations open to flow; i.e. allocation is based on the volumetric ratios of the zones open to flow. Attached is also the areal extent of the Lower Tyonek "G" Upper Zone (Attachment 11). A summary sheet of the areal extent of the Sword #1 reservoirs is presented to the Commission (Attachment 12). Page 2 of 4 Cook Inlet Energy_ Based on the data presented to the Commission, CIE is allocating production to the commingled zones as follows: Name of the Zone Oil Allocation Ratio Water Allocation Ratio Hemlock Zone 0.29 0.97 Lower Tyonek "G" Oil Zone 0.01 0.02 Lower Tyonek "G" Upper Zone 0.70 0.01 CIE respectfully submits this report to satisfy the annual requirement as outlined in Conservation Order No. 685A. CIE will continue to monitor these allocations during the life of the well and will request any allocation changes to the Commission as warranted. If any additional information is required in this matter, please don't hesitate to contact me at (907) 433-3822. Sincerely, avid Kumar Production Manager Cook Inlet Energy Attachments 1. Sword #1 Well Completion 2. Timeline of Commingling 3. Pressure and Temperature Data for Hemlock Zone with Oil Master Jet pump 12A 4. Pressure and Temperature Data for Lower Tyonek "G" Upper Zone only with Oil Master Jet Pump 12A Page 3 of 4 Cook Inlet Energy_ 5. Pressure and Temperature Data for Hemlock and Lower Tyonek "G" Oil Zone with Oil Master Jet Pump 12A 6. Pressure and Temperature Data for Hemlock, Lower Tyonek "G" Oil Zone and Lower Tyonek "G" Upper Zone with Oil Master Jet Pump 13A 7. Surface Flow Test for all three zones, Hemlock, Lower Tyonek "G" Oil Zone and Lower Tyonek "G" Upper Zone with Oil Master Jet Pump 13A 8. Surface Flow Test for the Hemlock and Lower Tyonek "G" Oil Zone commingled with Oil Master Jet Pump 13A 9. Areal Map of the Hemlock Zone 10. Areal Map of the Upper Tyonek "G" Oil Zone 11. Areal Map of the Lower Tyonek "G" Upper Zone 12. Summary Sheet of Areal Extent of the Sword #1 Zones Page 4 of 4 Attachment I: Sword #1 Well Completion SWORD #1 COMPLETION 20" Conductor 16" hole 12 1/4" hole 8 1/2" hole X/O 3-1/21' PH6 - 2-7/8" 6.5# EUE L-80 TBG [a) 16,114' MD / 8,483' TVD ]Tyonek "G" Oil Zone - 17,108' - 17,144' M 5" - TOIL @ 17,202' MD / 9,276' TVD MD TVD FT 17601-17604 (9562-9564) 3 17630-17634 (9583-9585) 4 17659-17662 (9603-9605) 3 17666-17670 (9608-9611) 4 1770317708 (9635-9639) 5 17712-17717 (9641-9645) 5 17732-17748 (9656-9667) 16 17836-17886 (9733-9771) 50 17910-17932 (9790-9807) 22 17944-17948 (9817-9820) 4 17962-18004 (9831-9865) 42 18042-18052 (9896-9904) 10 Hemlock Total Perts 168 7 1/8" hole 18,475' MD/ 10,255' ND Tubing Retrievable SSSV @ 158' w/ 1/4" SS Control Line 20" K55 123' MD 133# Welded 123' TVD Chemical Injection Mandrel @ 1,996' w/ 3/8" SS Control Line 13 3/8" L-801 2,387' TVD 68 #1 BTC 1 3,020' MD 9 5/8" L-80 5,749' TVD 47 # BTC-M 10,142' MD 7" L-80 9,472' TVD 29# BTC 17,476' MD 131/2" 12.95# P-110 PH6 Tubing - ID - 2.75" 1 ---12 7/8" Kobe -Weatherford Jet Pump @ 16,429' MD - 2.245" ID ] Hydraulic Set Retrievable Packer 16,508' MD / 8,774' TVD 2 7/8" Non Elastomer Sliding "R" Sleeve @ 16,554' - 2.188" ID rc Tyonek "G" Upper Zone - 16,82T - 16,839' /16,853' - 16,871' 7• 7" Model D Permanent Packer 16,980' MD 2-7/8" R Nipple 17,034' MD - 2.188" ID �® 2-7/8" RN Nipple @ 17,067' MD - 2.010" ID "4 2-7/8" 6.5# 1 -80 EUE Tubing - ID - 2.441" 9D 17.070' lHemlock TCP Assembiv - 17.601' - 18.052' - Dropped on Firinq I 5" L-80 10,255' TVD 18# BTC 18,475' MD I D - 4.276" Attachment 2 : Sword #1 Status AOGCC Nomenclature Perforated Interval Thickness (MD) iDate Perforated Hemlock 168' 11/16/13 - Lower Tyonek "G" Upper Zone 30' 4/2/14 Lower Tyonek 'G" Oil Zone --- - - — -- 36 - - _ ----:4 - ---4/1/14 - - Hemlock Only 11/17/13, - -- - - - ComminglingStatus Production Date Start Production Date End Comments y 4/1/14 Lower Tyonek "G' Upper Zone Only 4/2/13; 4/6/14 -- - Hemlock and Lower Tyonek G _Oil Zone 4/9/14 4/27/14 As per Conservation Order 685 Hemlock, Lower Tyonek G' Upper and Lower Tyonek' G' Oil Zone 4/28/14 Current lAs per Conservation Order 685A CIE 1 of 1 5/27/15 N N a Attachment 3: Pressure and Temperature Data Hemlock Zone with Oil Master Jet Pump 12A PRESSURE AND TEMPERATURE VS DELTA TIME Company: CIE Location: Sword Date: November 17,2013 - December 17,2013 Serial# 5507 Maximum values: 5507 - Pressure 3504.169 psia at 3.01 hrs 5507 - Ext Temperature 192.710 F at 630.66 hrs 0 100 200 300 400 500 600 700 DELTA TIME(HOURS) 5507 - Pressure (psia) 5507 - Ext Temperature (F) 200 190 160 170 160 150 140 130 90 80 70 60 50 40 30 20 N Cn a) N L Attachment 4: Pressure and Temperature Data for Lower Tyonek "G" Upper Zone with Oil Master Jet Pump 12A PRESSURE AND TEMPERATURE VS DELTA TIME Company: CIE Location: Sword Date: April 01,2014 - April 06,2014 Serial# 90313 Maximum values: 90313 - Pressure 3793.468 psia at 11.38 hrs 90313 - Int Temperature 182.628 F at 113.61 hrs 0 10 20 30 40 50 60 70 80 90 100 110 DELTA TIME(HOURS) 90313 - Pressure (psia) 90313 - Int Temperature (F) 190 180 170 160 150 140 130 100 90 80 70 60 50 40 Attachment 5: Pressure and Temperature Data Hemlock and Lower Tyonek "G" Oil Zone with Oil Master Jet Pump 12A PRESSURE AND TEMPERATURE VS DELTA TIME Company: CIE Location: Sword Date: April 09,2014 - April 18,2014 Serial# 90313 Maximum values: 90313 - Pressure 3501.785 psia at 201.86 hrs 90313 - Int Temperature 186.403 F at 83.89 hrs 4000 3000 a) 73 N 2000 ID 0- 1000 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 160 160 170 180 190 200 DELTA TIME(HOURS) 190 180 170 160 150 140 130 m N a 120 aEi H 110 100 90 80 70 60 Attachment 6: Pressure and Temperature DataHemlock, Lower Tyonek "G" Oil Zone and Lower Tyonek "G" Upper Zone with Oil Master Jet pump 13A PRESSURE AND TEMPERATURE VS DELTA TIME Company: CIE Location: Sword Date: June 28,2014 - July 30,2014 Serial# 90313 Maximum values: 90313 - Pressure 3243.088 psia at 18.78 hrs 90313 - Int Temp 196.743 F at 103.27 hrs 0- 0 100 200 300 400 500 600 700 DELTA TIME(HOURS) 90313 - Pressure (psia) 90313 - Int Temp (F) 200 190 180 170 160 150 140 m N a 130 Q) F- 120 110 100 90 80 70 Attachment 7: Surface Flow Test for all three zones, Hemlock, Lower Tyonek "G" Oil Zone and Lower Tyonek "G" Upper Zone with Oil Master Jet pump 13A DATE 3/7/15 WELL SWD 1 TEST TIME 3 HR. PWR. PSI. 3800 TANK #1 TANK #2 TANK #3 TANK #4 FT IN FT IN FT IN FT IN starting strap 2 2 2 3 1 hour 7 5 6 10 2 hour 12 5 11 6 3 hour 17 3 16 8 TOTAL BBL. (-) starting strap TOTAL BBL. PWR. OIL TOTAL BBL.FOR 2 HR. TEST TOTAL BBL. EST FOR 24 HR. Choke Set Pumps Tfeater 17 ALL TESTED BY: I BRAD BIRD TOTAL Increase power oil power oil Water Water BBL. BBL. BBL. RATE HR. Meter Increase 88.4 2,666 783 284.8 196.5 2,842 823 40.00 478.1 193.3 3,021 86i 4100 678.0 199.9 3,194 904 4000 589.7 Water inc. 6 hour 121.00 528.0 Water est. 24 hours 968.00 61.7 493.3 Attachment 8: Surface Flow Test for the Hemlock and Lower Tyonek "G" Oil Zone commingled with Oil Master Jet Pump 13A DATE 2/24/15 WELL Sword 1 TEST TIME 3 HR. PWR. PSI. 3800 TANK #1 FT starting strap 1 hour 2 hour 3 hour TANK #2 TANK #3 TANK #4 TOTAL Increase power oil power oil Water Water IN FT IN FT IN FT IN BBL. BBL. BBL. RATE HR. Meter Increase 2 0 2 6 90.0 1,098 245 6 6 7 5 278.2 188.2 1,281 285 40.00 11 2 12 5 471.4 193.3 1,459 325 40.00 15 9 16 10 651.3 179.9 1,641 365 40.00 TOTAL BBL. (-) starting strap 561.3 Water inc. 6 hour 120.00 TOTAL BBL. PWR. OIL 543.0 Water est. 24 hours 960.00 TOTAL BBL.FOR 3 HR. TEST 18.3 TOTAL BBL. EST FOR 24 HR. 146.6 Choke Set Pumps Treater 16 1 ALL 120 TESTED BY: I Andy Schaafsma Cook Inlet Eergy Sword Lwr Tyonek - Hemlock Blob Sword Prospect Area Raw Sub m 1 : izoo0 0__. FEET "ELL SYMBOLS Z. of Ytv Y Ory Note By: Greg KiMand _ Au" 25,2014 Attachment 9: Areal Map of the Hemlock Zone Cook Inlet Eergy Sword Lwr Tyonek 00 Sd S 0rd Prospect Aroe Rato Scab 1 12,000 0 T_000 FEET POSTED WELL DATA • FMTOPS- G_0(OLK)(U)(FEET) WELL SWOM • Ow~ By. Grey IGrkwd ArpuM 25.2011 .. Attachment 10: Areal Map of the Lower Tyonek "G" Upper Zone IEIIUYJVl11 � t1� 7i Yf a I , O j ! (I Cook Inlet Eergy Sword Lwr Tyone2k (Upr)Oil Sd SvKxd PMaped AIIM Ratio Scab - 1 : 12.000 FEET POSTED WELL DATA F uTOD4 C{C®t i&5) 6f F rl WELL SYMBOLS 0 OW~ - By: Greg lej ki" .wwN25.2014 _-.._. Attachment 11: Areal Map of the Lower Tyonek "G" Upper Zone MT" YllRC11 0 1 Attachment 12: Summary Sheet of the Areal Extent of the Sword # 1 Zones Potential Productive Areas Sword Productive Formations Proven limits to LKO Most Likely Maximum to HKW Reservoir Sec 3 Sec 2 Sec 3 Sec 2 Sec 3 Sec 2 Lwr Tyonek (Upr) 34.6 40.8 Lwr Tyonek Oil 7.1 12.8 29.4 35.5 74.4 85 Hemlock Oil 97.5 104.9 #3 Carlisle, Samantha J (DOA) From: Brian Havelock <brianhavelock@yahoo.com> Sent: Thursday, May 08, 2014 3:37 PM To: Carlisle, Samantha J (DOA) Subject: Re: Notice of Public Hearing (Cook Inlet Energy - Sword 1) Thank you, that is great news if there is lower Tyonek oil on the Westside- congratulations to the operator Bob Warthen! Brian Havelock Text anytime and call during hours of 08:00-18:00 AKT (AKT = UTZ -9 hrs.) On May 8, 2014, at 3:09 PM, "Carlisle, Samantha J (DOA)" <samantha.carlisle @alaska.Qov> wrote: Please see attached. Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 7�" Avenue, Suite 100 Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542 (fax) 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 Samantha Carlisle at (907) 793-1223 or Samantha.Carlisle@alaska.gov. <Notice of Public Hearing, CO-14-011.pdf> aj Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-011 The application of Cook Inlet Energy, LLC (CIE) for an amendment to Conservation Order 685 (CO 685) to add an additional oil zone to those approved for downhole commingling In the Sword 1 well. CIE, by email received on May 1, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) to amend CO 685 to add the Lower Tyonek "G" Upper zone to the downhole commingling authorization that already includes the Hemlock and Lower Tyonek "G" Oil zones. The AOGCC has tentatively scheduled a public hearing on this application for June 19, 2014, at 9:00 a.m. at 333 West 71h Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on May 29, 2014. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after June 3, 2014. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7" Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on June 13, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the June 19, 2014 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than June 16, 2014. er�5 Daniel T. Seamount, Jr. Commissioner r STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /� O_14-036 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF M ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOWAOR INV`OICQ DP `iy of I" IF AOGCC AGENCY CONTACT DATE OF A.O. May 8, 2014 R 333 W 7th Ave, Ste 100 Jody Colombie ° Anchorage, AK 99501 PHONE PCN M 3 —1221 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News ASAP PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWNUBLE SPECIAL INSTRUCTIONS: Type of Advertisement Legal® ❑ Display Classified ❑Other (Specify) SEEATTACHED AOGCC, 333 W. 7th Ave., Suite 100 PAGE a of TOTAL OF ALL PAGES $ �Anchorage, AK 99501 2 PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID 1 14 02140100 73451 2 REQUISITIONED BY: DIVISION APPROVAL: 02-902 (Rev. 3/94) \' Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM 270227 0001038824 REC I $ 209.16 MAY 16 26114 AFFIDAVIT OF PUBLICATION aoGcc STATE OF ALASKA THIRD JUDICIAL DISTRICT Joleesa Stepetin being first duly sworn on oath deposes and says that he is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on May 09, 2014 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. U' Signed Subscribed `and sworn to before me is 9th day of May, 2014 Notary Pubfic in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-011 The application of Cook Inlet Energy, LLC (CIE) for an amendment to Conservation Order 685 (CO 685) to add an additional oil zone to those approved for downhole commingling In the Sword 1 well. CIE, by email received on May 1, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) to amend CO 685 to add the Lower Tyonek -G" Upper zone to the downhole commingling authorization that already includes the Hemlock and Lower Tyonek "G' Oil zones. The AOGCC has tentatively scheduled a public hearing on this application for JuneAnchora19,19, 2014, at 9:00 a.m. at 333 West 7th Avenue, Suite 501. To scheduled hearing be, heldka wAlasa attwrittenrequesgtuest mu that betf ledentativewith the AOGCC no later than 4:30 p.m. on May 29, 2014. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after June 3, 2014. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on June 13, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the June 19, 2014 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no latex than June 16, 2014. AO-14-036 Published: May 9, 2014 Daniel T. Seamount, Jr. Commissioner 9 • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /� O_14-036 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF M ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE MTTOM FORMpFiE� � r F AOGCCAGENCY CONTACT DATE OF A.o. R 333 West 71" Avenue, Suite 100 Jody ColombieMay 8 2014 0 Anchorage_ AK 99501 PHONE PCN M -1221 DATES ADVERTISEMENT REQUIRED: T Anchorage Daily News ASAP 0 PO Box 149001 THE MATERIAL BETWEEN THE Anchorage, AK 99514 ENTIRETY ON THE DATES SHOWNUBLE LINES MUST BE PRINTED IN ITS SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HER who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2012, and thereafter for consecutive days, the last publication appearing on the day of , 2014, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2014, Notary public for state of My commission expires. • Singh, Angela K (DOA) From: Carlisle, Samantha J (DOA) Sent: Thursday, May 08, 2014 3:09 PM To: (michael j.nelson@conocophillips.com); AKDCWellIntegrityCoordinator, Alexander Bridge; Andrew VanderJack, Anna Raff; Barbara F Fullmer, bbritch; bbohrer@ap.org; Barron, William C (DNR); Bill Penrose; Bill Walker, Bob Shavelson; Brian Havelock; Burdick, John D (DNR); Cliff Posey; Colleen Miller, Crandall, Krissell; D Lawrence; Daryl J. Kleppin; Dave Harbour, Dave Matthews; David Boelens; David Duffy; David Goade; David House; David McCaleb; David Scott; David Steingreaber, David Tetta; Davide Simeone; ddonkel@cfl.rr.com; Donna Ambruz; Dowdy, Alicia G (DNR); Dudley Platt; Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer, Frank Molli; Gary Schultz (gary.schultz@alaska.gov); George Pollock; ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; gspfoff, Jacki Rose; Jdarlington Oarlington@gmail.com); Jeanne McPherren; Jones, Jeffery B (DOA); Jerry McCutcheon; Jim White; Joe Lastufka; news@radiokenai.com; Easton, John R (DNR); John Garing; Jon Goltz, Jones, Jeffrey L (GOV); Juanita Lovett; Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Keith Wiles; Kelly Sperback; Klippmann; Gregersen, Laura S (DNR); Leslie Smith; Lisa Parker, Louisiana Cutler; Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark P. Worcester, Mark Wedman; Kremer, Marguerite C (DNR); Michael Jacobs; Mike Bill; mike@kbbi.org; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; Morones, Mark P (DNR); knelson@petroleumnews.com; Nick W. Glover, Nikki Martin; NSK Problem Well Supv; Oliver Sternicki; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Randy Redmond; Rena Delbridge; Renan Yanish; Robert Brelsford; Ryan Tunseth; Sandra Haggard; Sara Leverette; Scott Griffith; Shannon Donnelly, Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer, Steve Kiorpes; Moothart, Steve R (DNR); Steven R. Rossberg; Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer, Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Thor Cutler, Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Walter Featherly; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; David Lenig; Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr, Smith, Graham O (PCO); Greg Mattson; Hans Schlegel; Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck; jilt.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; John Martineck, Josh Kindred; Kenneth Luckey; King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck, Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill; Franger, James M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Bettis, Patricia K (DOA); Peter Contreras; Richard Garrard; Richard Nehring; Robert Province; Ryan Daniel; Sandra Lemke; Pexton, Scott R (DNR); Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Terence Dalton; Todd, Richard J (LAW); Tostevin, Breck C (LAW); Wayne Wooster, Woolf, Wendy C (DNR); William Hutto; William Van Dyke; Ballantine, Tab A (LAW); Bender, Makana K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Ferguson, Victoria L (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Hill, Johnnie W (DOA); Hunt, Jennifer L (DOA); Johnson, Elaine M (DOA) (elaine Johnson@alaska.gov); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, T4: Ang�a K (DOA); Turkington, Jeff A (DOA); Wallace•Chris b (DOA) Subject: Notice of Public Hearing (Cook Inlet Energy - Sword 1) Attachments: Notice of Public Hearing, CO-14-011.pdf Please see attached. Samantha CarlisCe Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 71h Avenue, Suite 100 Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542 (fax) 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 Samantha Carlisle at (907) 793-1223 or Samantha.Carlisle@alaska.gov. • • Tim Jones Staff Landman Cook Inlet Energy, LLC 601 W. 5`h Ave., Ste. 310 Anchorage, AK 99501 Penny Vadla George Vaught, Jr. 399 W. Riverview Ave. Post Office Box 13557 Soldotna, AK 99669-7714 Denver, CO 80201-3557 Bernie Karl CIRI K&K Recycling Inc. Land Department Post Office Box 58055 Post Office Box 93330 Fairbanks, AK 99711 Anchorage, AK 99503 Richard Wagner Gordon Severson Post Office Box 60868 3201 Westmar Cir. Fairbanks, AK 99706 Anchorage, AK 99508-4336 Darwin Waldsmith James Gibbs Post Office Box 39309 Post Office Box 1597 Ninilchik, AK 99639 Soldotna, AK 99669 Jerry Hodgden Hodgden Oil Company 40818' St. Golden, CO 80401-2433 North Slope Borough Planning Department Post Office Box 69 Barrow, AK 99723 Jack Hakkila Post Office Box 190083 Anchorage, AK 99519 rA_�'4;��Q1 #1 0 Colombie, Jody J (DOA) From: Roby, David S (DOA) Sent: Monday, May 05, 2014 9:32 AM To: Colombie, Jody J (DOA) Subject: FW: request to amend CO 685 Attachments: 20140501 Commingling Application Amendment Sword.pdf Jody, Do we need a formal letter from CIE, or is this an acceptable application? If this is acceptable please docket it and assign it to me. Thanks, Dave Roby (907) 793-1232 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 Dave Roby at (907)793-1232 or dave.robv@alaska.aov. From: Bettis, Patricia K (DOA) Sent: Monday, May 05, 2014 8:51 AM To: Roby, David S (DOA) Subject: FW: request to amend CO 685 From: Tim Jones[mailto:Tim.Jones(�bcookinlet.netl Sent: Thursday, May 01, 2014 4:24 PM To: Bettis, Patricia K (DOA) Cc: David Kumar Subject: request to amend CO 685 Hi Patricia, Please find attached a request to amend Conservation Order 685 to include commingling of the Tyonek "G" Upper zone with the currently commingled Tyonek "G" Oil zone and the Hemlock zone, approved under Conservation Order 685. Initial indications were that the Tyonek "G" Upper zone was a gas bearing zone, but upon perfing and testing, the zone was found to be oil-bearing. CIE is able to shut in flow from this zone through the use of a sliding sleeve, and it is currently shut in awaiting approval to commingle production with the currently producing lower zones. CIE is very interested in being able to begin production from this zone and we hope the Commission is able to expedite this request. If you need any further information, please give me a call. Thanks. Tim Jones Staff Landman Cook Inlet Energy, LLC 601 W. 5th Ave., Suite 310 Anchorage, AK 99501 Office: (907) 433-3811 Cell: (907) 350-7426 Cook Inlet Energy Commingling Request Cook hnlet Energv, LLC (CIE) is requesting the commission to amend Conservation Order 685 to approve additional downhole commingling of production between the Hemlock and Lower Ti,onek "G" Oil zones with the Lower Ti7onek "G" Upper zone in the Sword #1 lVell in accordance with 20AAC 25.215. Background On March 5th, 2014, CIE was granted Conservation Order (CO) 685 to allow commingling of production from the Hemlock and Lower Tyonek "G" Oil zones in the Sword 1 well (API 50- 133-20615-00-00). CIE recently perforated and tested the Lower Tyonek "G" Upper zone and encountered substantial amounts of oil. CIE is therefore requesting that the Commission amend CO 685 to add the Tyonek "G" Upper zone and approve downhole commingling of production between the Hemlock and Lower Tyonek "G" Oil zones with the Lower Tyonek "G" Upper zone in the Sword 1 well. Discussion Supporting Additional Commingling 1. Relative Location of Producing Zones Currently there are three different zones perforated in the Sword 1 well. These zones are the Hemlock Oil zone, the Lower Tyonek "G" Oil zone and Lower Tyonek "G" Upper zone. Sword 1 is currently producing from the commingled Hemlock and Lower Tyonek "G" Oil zones and is undergoing testing to establish allocation ratios and stabilized rates. The perforation distribution of these zones and their locations in the well bore is tabulated in Appendix 1 and on the logs as Appendix 2. The vertical distance between the lowest perforations of the Lower Tyonek "G" Upper zone and the upper perforations of the Lower Tyonek "G" Oil zone is 171'. The proximity of these zones will enable CIE to achieve greater control during the commingling process in comparison to zones that are farther apart. 2. Reservoir Characteristics Well log analysis over the perforated interval shows the average porosity for the Lower Tyonek "G" Oil zone is about 14.3% and the average porosity for the Lower Tyonek "G" Upper zone is Page 11 about 15.9%. The average water saturations determined for both these zones are 45.7% and 28% respectively. Penneability for both of these zones are variable and vary between <1 and to over 30 and in general, depending upon the location in the reservoir. The similarity in reservoir properties make them good contenders for commingling. 3. Pressures A pressure bomb was installed and hung on the standing valve located below the pump at 16,429' MD (8,722.86' TVD). Two separate production runs were conducted, one involving only the Lower Tyonek `'G" Upper zone and the other involving the Hemlock and Lower Tyonek "G" Oil zones combined together. The static pressure recorded after pump shutdown was 3,408 and 3,206 psi respectively. Using hydrostatic head added to these pressures, the static pressures for the top of the Lower Tyonek "G" Upper zone and Lower Tyonek "G" Oil zones are 3,517 and 3,409 psi respectively. Due to the similar pressures in both these zones, they would qualify as ideal candidates for commingling. There is a small window of opportunity to commingle these zones before the pressure in the current producing zone gets depleted due to ongoing production activities. 4. Production Rates A three day production test on only the Lower Tyonek "G" Upper zone yielded an average oil production rate of 290.21 BPD with a water cut of 6.81 %. Currently, well tests are being performed on the commingled production of the Hemlock zone and the Lower Tyonek "G" Oil zones to establish a combined rate as the Lower Tyonek "G" Oil zone was perforated shortly after the Lower Tyonek "G" Upper zone test. The lower rates recognized from the Lower Tyonek "G" Upper zone in comparison to the overall production rates of Sword 1 (over 600 BPD for just the Hemlock zone) do not justify producing the Lower Tyonek "G" Upper zone as a stand-alone and therefore it is beneficial to commingle production with the rest of the zones. 5. Zonal isolation The Lower Tyonek "G" Upper zone is completely isolated from the other actively producing zones via a packer in the annular space and a sliding sleeve on the tubing side leading to the Jet Pump (Appendix 3). Combining production from the Lower Tyonek "G" Upper zone with the Page 12 rest of the production will be accomplished by opening the sliding sleeve and allowing fluids from this isolated section to be recovered with the rest of the actively producing zones by means of the Jet Pump. 6. Prevention of Cross Flow and Waste Both these zones are physically separated from each other. During production operations the Jet Pump will ensure that the intake pressure is lower than that of both zones, resulting in fluid flow into the well bore from both zones. Any mixing at this point will occur only in the tubing and the well bore. Furthermore, the static pressure between both zones is close to each other (within 108 psi). During extended shut down periods, CIE will isolate these zones by closing the sliding sleeve which will prevent any chance of cross flow between the zones. The artificial lift employed for the Sword 1 well will ensure better inflow performance, higher recovery and will ensure waste minimization in the individual zones. 7. Allocation Methods A well flow test has been performed on the Lower Tyonek "G" Upper zone and flow tests are currently being performed on the combined production of the Hemlock zone and the Lower Tyonek "G" Oil zones. Additional tests will be conducted to determine final combined rates when all these zones are commingled. Based on these tests, allocation ratios will be assigned to different zones. These ratios can be adjusted during the life of the well by the use of production logs as well as zonal isolation by manipulating the sliding sleeve when required. A geochemical analysis will be also be conducted to analyze fluid densities before and after commingling which would add to the quality of allocation ratio determinations. 8. Correlative Rights In the previous application submitted by CIE to the AOGCC on Dec 18, 2013 leading to the issuance of CO 685, CIE explained how correlative rights across all the leases pertaining to Sword 1 are protected. CIE is awaiting a decision by the Alaska Division of Oil and Gas (DO&G), which will determine that the Sword 1 well is capable of producing hydrocarbons in paying quantities. This determination is required under a Farmout agreement between Hilcorp Alaska, LLC (Hilcorp) and CIE, and will result in the assignment of Hilcorp's 30% working Page 13 • • interest in ADL 17602 to CIE, per the terms of the Farm -out agreement. As previously discussed, CIE plans to apply for expansion of the West McArthur River Unit (WMRU) which will incorporate a portion of ADL 17602 into the Unit. Land ownership and working interest ownership will be consistent across the leases. In addition, CO 675 allows for a spacing exception which allows Sword 1 to test and produce oil within 500' of a property line where ownership or land ownership changes. Any adjustments of previously paid royalties and over- riding royalties will be made retroactively to ensure the landowner and ORRI holders receive their allocated share of production (or value of production) in accordance with the new WMRU Agreement. Conclusion CIE hereby requests permission to amend CO 685 to allow commingling of all the oil producing zones in Sword 1, based on the following conclusions: 1) The zones are inclose proximity to one another and share similar reservoir properties. 2) Commingling of production will allow for additional recovery of hydrocarbons from the Lower Tyonek "G" Upper zone vs isolated production. 3) Commingling will result in waste minimization, cross flow prevention and enhanced recovery from all zones. 4) Through the capability to selectively close off the "G" Upper zone, CIE has the ability to determine accurate allocation ratios in these zones. 5) Commingling efforts will not jeopardize any correlative rights. Page 14 • Appendix Appendix 1 Hemlock 17,601-17,604 (3') 9,562.23-9,564.36 17,630-17,634 (4') 9,582.79- 9585.63 17,659-17,662 (3') 9,603.35-9605.48 17,666-17,670 (4') 9,608.32-9,611.15 17,703-17,708 (5') 9,634.90-9,638.52 17,712-17,717 (5') 9,641.41-9,645.03 17,732-17,748 (16') 9,655.89-9,667.47 17,836-17,886 (50') 9,733.04-9,771.29 17,910-17,932 (22') 9,790.15-9,807.44 17,944-17,948 (4') 9,816.87-9,820.01 17,962-18,004 (42') 9,831.01-9,864.91 18,042-18,052 (10') 9,895.66-9,903.75 Total 168' Lower Tyonek "G" Oil 17,108-17,144 (36') 9,208.23-9,234.17 Total 36' Lower Tyonek "G" Upper 16,827-16,839 (12') 9,005.61-9,014.19 16,853-16,871 (18') 9,024.25-9,037.25 Page 1 5 Total 30' Table: Perforation Distribution ofProduc•ing Zones in the Sword 1 Well Appendix 2 Figure: Pcr-finoration Distribution o/ Producing Zoncs in the SWOrd 1 Well t AL+NW 18 - 30D 8D __ _- _----_____ Sword No. 1 0 DONGC 150 2 RIVC II00 W 1NPs 0 1O►W1 1 %i z — Vic._ .•_ — 2_ .._ _ _ _ — ._ 0 MD _ _— _ i 0"W) I Wo 9 FsM Lwr. Tyonek G Upr a � � 1 r �^ t9100 X. f ft Lwr. Tyonek "G' O71"...1.- 7_ _-.1_.. s 1 Page 1 6 • • Page 17 0 vamssed by 'Josh C-" Sword No. 1 Analyses by Log Analys 6 ALHSI 16 2 R09PC ------- ( IN ) _.-.---_. (owns,+ DGRCC 150 .2 R15PC 1 GAP! I C)HW y z R39PC (OHMM ) 1.800 Fed Page 18 • Appendix 3 Figure: 111 II Bore. Diclgrurn, for Sword I in Zone of hlterest 1 8 1/2" hole kO I31161/ 14' MD 18p T G@8 TVID G" Oil Zone-17,108'-17,144' k 1 15" - TOL A 17,202' MD 19,276' TVD I MD TVD FT 17601-17604 (9562-9564) 3 17630-17634 (9583.9585) 4 17659.17662 (9603.9605) 3 17666.17670 (9608-9611) 4 17703-17708 (9635.9639) 5 17712.17717 (9641-9645) 5 17732-17748 (9656-9667) 16 17836.17886 (9733.9771) 50 17910-17932 (9790-9807) 22 17944-17948 (9817-9820) 4 17962-18004 (9831.9865) 42 18042-18052 (9896-9904) 10 Hemloct TotalPeris 168 17 118" hole 182475' MDl 10,255' ND Page 19 131 �2" 12.95# P-110 PH6 Tubing - ID - 2.75" 1 12 718" Kobe Weatherford Jet Pump rq 16,429 IAD - 2.245' ID lHydraulic Set Retrievable Packer @ 16.508 MD 18,774' ND L�2 718" Edon Elastomer Slidirn3 "R" Sleeve @ 16.554 - 2.188" ID � Tyonek "G" Upper Zone-16,82T-1fi,839' 116,853'-16,871' 7" Model D Permanent Packer @ 16.980' MD 2-718' R Nipple @ 17.034' MD - 2-188' ID 2-7,V' RN Nipple R 17.067 MD - 2.010" ID 12-718" 6.59 L-80 EUE Tubing - ID - 2.441" @ 17,070' J — Hemlock TCP =ss?mil, - 17.60T - 18.052 - Dropp?don Pihng 5" L-80 10.255' TVD 18# BTC 18.475' PAD ID - 4.276"