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214-107
STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS APR 0 4 2019 1. Operations Abandon U Plug Perforations U� Fracture Stimulate U Pull Tubing Ll p ti t n ❑ Performed: Suspend E] Perforate ❑� Other Stimulate ❑ Alter Casing ElCha m Plug for Redrill ❑ erforate New Pool ❑ Repair Well ❑ Re-enter cusp Well ❑ Other: N2 ❑� 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Hilcorp Alaska, LLC Development ❑✓ Exploratory ❑ Stratigraphic❑ Service ❑ 214-107 3. Address: 3800 Centerpoint Dr, Suite 1400 Anchorage, 6. API Number: AK 99503 50-133-20638-00-00 7. Property Designation (Lease Number): 8. Well Name and Number: Fee -Private; ADL 384372 Ninilchik Unit Paxton 8 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field/Pool(s): N/A Ninilchik / Beluga-Tyonek Gas Pool 11. Present Well Condition Summary: Total Depth measured 9,310 feel Plugs measured 7,975 feet true vertical 8,038 feet Junk measured NIA feet Effective Depth measured 7,975 feet Packer measured 7,510 feet true vertical 6,722 feet true vertical 6,265 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 16" 80' 80' Surface 3,525' 9-5/8" 3,548' 2,987' 5,750psi 3,090psi Intermediate Production 9,248' 5-1/2" 9,268' 7,996' 10,640psi 7,480psi Liner Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth) 2-7/8" 6.4# 1 L-80 7,589' MD 6,342' TVD N/A; N/A; N/A Packers and SSSV (type, measured and true vertical depth) Baker SAB -L Pkr 7,510'MD/6,265'TVD 12. Stimulation or cement squeeze summary: NIA Intervals treated (measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil -Bbl Gas-Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 466 0 0 84 Subsequent to operation: 1 0 13,165 2 0 2,572 14. Attachments (required per 20 AAc 25.070, 25.071. a 25.283) 15. Well Class after work: Daily Report of Well Operations Exploratory[-] Development Q Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16. Well Status after work: Oil Gas 4 WDSPL Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP ❑ SPLUG ❑ 17. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 319-094 Authorized Name: Bo York 777-8345 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: tkramer(alhilcom.com �y Authorized Signature: Date: 1 &,,,12-0 t ( Contact Phone: 777-8420 Farm 10-404 Revised 412017 JZ 45`4 _ RBDMS�APR 0 5 2019 Submit Original Only Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number start Date End Date Paxton 8 E-Line 50-133-20638-00 214-107 3/22/19 1 3/25/19 Daily Operations: 03/22/2019 - Friday Shut well in. PTW, JSA and SIMOPS with AKE-Line and SLB N2. Spot equip and rig up lubricator and hard lines. PT to 250 psi low and 4,000 psi high with N2. TP - 361.2 psi. RIH w/GPT tool and tie into OHL. Find fluid level at 8,224' correlated with Halliburton CBL. Send log to town. TP - 368.7 psi. POOH. Release SLB to come back tomorrow to pressure up tubing to 1,700 psi. RIH w/ 1.81" OD Spiral plug snd tied into GPT log. Had to run plug at 50' per min as instructed by plug manufactory company. Ran correlation log and got ok to set plug at 8,000'. Set plug with 373.2 psi on tubing. Showed a good set. Picked up 30' and lightly tagged plug. POOH. Setting tool looked good. TP - 374.5 psi. RIH w/ 2" x 30' Dump Bailer filled with beads and tie into Plug log. Stopped bailer at 7,998' and dumped 1' of ceramic beads on top of plug with 374.5 psi on tubing. POOH. Good dump. RIH w/ 2" x 30' dump bailer filled with 16 ppg cement and tie into plug log. stop bailer bottom at 7,994' and dumped 4' of cement on top of plug with TP at 374.3 psi. Will get a cement sample in a cup for every cement run. 1st cement run. Good indication of dump. POOH. Good dump. RIH w/ 2" x 30' dump bailer filled with 16 ppg cement and tie into plug log. Stop bailer bottom at 7,990' and dumped 4' of cement on top of plug with TP at 376.5 psi. 2d cement run. Good indication of dump. POOH. Good dump. RIH w/ 2" x 30' dump bailer filled with 16 ppg cement and tie into plug log. Stop bailer bottom at 7,986' and dumped 4' of cement on top of plug with TP at 376 psi. 3d cement run. Good indication of dump. POOH. Good dump. Dump total of 1' of beads and 14' of cement Out of hole 372.7 psi. The tubing pressures are different when we are out of hole and going in hole. Not much but like 3 psi. I don't believe the plug is leaking. Cement in place 2130 hrs. Rig down lubricator and wait on cement. Tubing pressure is 372.34. Will be back in morning. around 1100 hrs to make 3 more cement runs pressure tubing up to 1,700 psi with N2 and then perforate. Should be perforating around 1600 hrs tomorrow if everything goes ok. 03/23/2019-Saturday PTW and JSA. Rig back up lubricator. PT to 250 psi low and 3,500 psi high. TP - 385.9 psi. RIH w/ 2'x 30' Dump bailer full of 16 ppg cement and tie into plug log. Tagged TOC at 7,987' (right where we figured). Dump bailer and got good indication it dumped. POOH and good dump. Call SLB N2 to tell them to come out. RIH w/ 2'x 30' Dump bailer full of 16 ppg cement and tie into plug log. Dump cement on top of last run at 7,983'. Good indication of dump. POOH good dump. TP - 366.4 psi. RIH w/ 2'x 30' Dump bailer full of 16 ppg cement and tie into plug log. Dump cement on top of last run at 7,979'. Good indication of dump. POOH good dump. TP - 366.4 psi. Est TOC is 7,975'. (Total of 25' of cement dumped). Rig up SLB N2 hard lines and pressure test hard lines and lubricator to 4,000 psi. RIH w/ 2-1/8" x 20' HC Connex and tie into OHL. Pressure up tubing with N2 to 1,718.2 psi. Run correlation log and send to town. Get ok to perf from 7,695' to 7,720'. Spot and fired gun with 1,718.2 psi. TP went to 2,015 psi in 1 min. 5 min - 2,043 psi, 10 min - 2,055 psi and 15 min - 2,055 psi. POOH. All shots fired - Gun was dry. Rig down SLB N2 hard lines and AKE-Line lubricator and turn well over to field. We used approx. 420 gals of N2 pressuring up tubing for perf underbalance. Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date Paxton 8 E -Line 1 50-133-20638-00 1 214-107 3/22/19 1 3/25/19 Daily Operations: 03/25/2019 - Monday PTW and JSA. Spot equipment and rig up lubricator. PT to 250 psi low and 3,500 high. Well shut in. TP - 2,145 psi. Wait on more wt bars because of pressure. RIH w/GPT tool and tie into pert log. Find fluid level at 7,944' and tagged at 7,975'. POOH. Field has 5 gal a day of methanol coming out of chemical injection sub. Stand by while bring well on to 3 million/2,097 psi for 30 min and then to 6 million at 1,992 psi for 30 min before I told E -Line to rig down. Shot temp on bottom master, wing valve to SSV and flow line. All 3 were 35 deg flowing 3 million. At 6 million all 3 were 45 deg. Rig down lubricator and equipment. Leave equipment here because we will be perforating HVA -9 tomorrow and will pick it up on the way there. Still have methanol pumping out of chemical injection sub. K tliliv.p Aloekn. LLC RKB = 20.5' Hole TOC @ 7,975' r, CI, "•` SCHEMATIC CASING DETAIL Ninilchik Unit Well: Paxton #8 PTD: 214-107 API: 50-133-20638-00 Size Type Wt Grade Conn. ID Top Btm 16" Conductor 109 X-56 Weld 16" Surf 80' 9-5/8" Surf. Csg 40 L-80 BTC 8.835" Surf 3,548' 5-1/2" Prod Casing 17 P-110 CDC 4.892' Surf 9,268' TUBING 2-7/8" I Production 6.4 L-80 I EUE-8rd 1 2.441" 1 Surf 1 7,589' ry ('AculnlcdrOC 2,403' Nil) 1'65 183 T90a 'I 90b 1 90 190d 1135a 1'1356 1135c PBTD= 7,975' .,N1D / 6,722' 1 N D TD =9,310' '11D / 8,038"1"N"D OPEN HOLE / CEMENT DETAIL 9-5/8" 1 287 BBL's of cement in 12-1/4" Hole. Returns to Surface 5-1/2" 330 BBL's of cement in 8-1/2" Hole. Calculated TOC 2,403' wwri RV nFTAII No. Depth ID OD Item 1 158' Chemical Injection Sub 2 171' 2.313" 4.600" SLB TRMAXX SE SCSSSV 3 7,510' Baker SAB -L Perm Packer 4 7,589' Wireline re-entry guide 5 8,000' CIBP 5-1/2" w/25' cmt 03-22-19 PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Gun Size SPF Status Date T65 7,695' 7,72U 6,446' 6,471' 25' 2" 6 Open 03/23/19 T83 8,036' 8,074' 6,782' 6,819' 38' 2" 12 Isolate 01/09/15 T90a 8,176' 8,244' 6,919' 6,986' 68' 2" 12 Isolate 12/15/14 T90b 8,248' 8,258' 6,990' 6,999' 10' 2" 12 Isolate 12/13/14 T90c 8,268't8,782' 7,009' 7,015' 6' 2' 12 Isolate 12/13/14 TSod 8,306'7,047' 7,058' 12' 2" 12 Isolate 12/12/14 8.768'7,501' 7,515' 14' 2" 6 Isolate 12/12/14 T135a 8,768'7,501' 7,515' 14' 2" 12 Isolate 11/25/14 7,519 7,529' 10' 2" 12 Isolate 11/25/14 7,547' 7,553' 6' 2" 12 Isolate 11/25/14 Updated by DMA 04-03-19 THE STATE ALASKA GOVERNOR MIKE DUNLEAVY Bo York Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, Beluga/Tyonek Gas Pool, Paxton 8 Permit to Drill Number: 214-107 Sundry Number: 319-094 Dear Mr. York: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Www. a ogc c. o las ka.gov Enclosed is the approved application for the 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 AOGCC grants for good cause shown, a person affected by it may file with the AOGCC 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, Daniel T. Seamount, Jr. Commissioner DATED this 2day of February, 2019. IRgDMs A� p 5 NIS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 RECEIVE® FEB 2 6 2019 AOGCC 1. Type of Request: Abandon ❑ Plug Perforations Q - Fracture Stimulate ❑ Repair Well ❑ Operations shutdown ❑ Suspend ❑ Perforate Q • Other Stimulate ❑ Pull Tubing ❑ Change Approved Program ❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: N2 Q 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Hilcorp Alaska, LLC Exploratory ❑ Development D • Stratigraphic ❑ Service ❑ 214-107 ' 3. Address: 3800 Centerpoint Dr, Suite 1400 6. API Number: Anchorage Alaska 99503 50-133-20638-00'Q�' 7. If perforating: 8. Well Name and Number: z 2 7 What Regulation or Conservation Order governs well spacing in this pool? CO 701C Will planned perforations require a spacing exception? Yes ❑ No Ninilchik Unit Paxton 8 9. Property Designation (Lease Number): 10. Field/Pool(s): Fee -Private -'ADL 384372 Ninilchik / Beluga-Tyonek Gas Pool ' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): Effective Depth MD: Effective Depth ND: MPSP (psi): Plugs (MD): Junk (MD): 93/G' 4t Casing > Length Size MD ND Burst Collapse Structural 2' Z Conductor 80' 16" My 80' N/A N/A Surface 3,525' 9-5/8" 3,548' 2,987' 5,750 psi 3,090 psi Intermediate Production 9,248' 5-1/2" 9,268' 7,996' 1 10,640 psi 7,480 psi Liner Perforation Depth MD (ft): Perforation Depth ND (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic 2-7/8" L-80 7,589' Packers and SSSV Type: Packers and SSSV MD (ft) and ND (ft): N/A N/A 12. Attachments: Proposal Summary Q Wellbore schematic Q 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ Development ❑.r Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: March 5, 2019 OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ GAS ❑✓ WAG ❑ GSTOR ❑ $PLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Bo York 777-8345 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: AMMU2111199rp.com Contact Phone: 777-8420 Authorized Signature: Date: Z�+�t �� COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: / Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? 9 5 2919 d Yes ❑ No Subsequent Form Required: p. yoy agpMs Mpg APPROVED BY J/ Approved by:lall� COMMISSIONER THE COMMISSION Date: / r Submit Form and _ L1 10-403 Revised 4/2017 Approved application is valid +�q�y� rppr��r� ebbf approval.,achments in Duplicate ,L �o �RIVIIVHL z_r7- i H Hilcoru Aleaku, LL Well Prognosis Well: Paxton #8 Date: 2/26/2019 Well Name: Paxton #8 API Number: 50-133-20638-00 Current Status: Producing Leg: Tyonek Estimated Start Date: March 5, 2019 Rig: ±6,446' Reg. Approval Req'd? 10-403 Date Reg. Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 214-107 First Call Engineer: Ted Kramer (907) 777-8420 (0) (985) 867-0665 (C) Second Call Engineer: Taylor Nasse (907) 777-8354 (0) (907) 903-0341 (C) AFE Number: Estimated Bottom Hole Pressure: Max. Anticipated Surface Pressure: Brief Well Summary —2,800 psi at 6,516 TVD (Assumed 0.43 psi/ft gradient) —2,148 psi (0.10 psi/ft gas grad. To surface) Paxton #8 was originally completed in 2014 in the lower Tyonek sands and is currently flowing at 1.6 MMSCFD at 130 psig. Objective of Work Add perforations in the Tyonek sands. Sundry Pre -work 1. RU Slickline Unit. Pressure test Lubricater to 3,000 psi. 2. Run a Gauge Ring in the well to 7,700'. Note: GR may be a spent 2" perf gun. 3. RD Slickline. E -Line Procedure 4. MIRU a -line and PT lubricator to 250 psi low/3,500 psi high. 5. Run GPT Tool to establish Fluid Level. 6. RU Nitrogen Truck. Pressure up with Nitrogen to push fluid away. Confirm FL with GPT tool. 7. POOH W/ GPT Tool. 8. PU CIBP and RIH to 8,000'. Set CIBP. Dump Cement as necessary. 9. Pressure up well to 1,700 psi. 10. Perforate the Tyonek sands with 2" 6 SPF 60 deg phased perf guns. Depths are from the Halliburton CBL performed on Oct. 30, 2014. Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. Record tubing pressures before and after each perforating run. Record condition of gun. Proposed Perforated Intervals Zone Sand Top(MD) Btm(MD) Top(TVD) Btm(TVD) Amt Tyonek T65 ±7,695' ±7,766' ±6,446' ±6,516' 71' Well Prognosis Well: Paxton #8 Hilcurp Alaska' LL Date: 2/26/2019 a. Proposed parts also shown on the proposed schematic in red font. b. Use Gamma/CCL to correlate. c. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record tubinc pressures before and after each perforating run. d. Rule 2 of Conservation Order 701C defines the Ninilchik Beluga/Tyonek Gas Pool as the intervals common to and correlating between the measured depths of 1,480' in the Paxton #5 well and 9,600' in the Paxton #1 well. 1. POOH. RD E -line. 2. Turn well over to production. Attachments: 1. Actual Schematic 2. Proposed Well Schematic 3. Standard Well Procedure—N2 Operations M 8-1 H SCHEMATIC RKB = 20.5' PBTD = 9,175' MD / 7,904' TVD TD = 9,310' MD / 8,038' TVD Ninilchik Unit Well: Paxton #8 PTD: 214-107 API: 50-133-20638-00 CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16" Conductor 109 X-56 Weld I 16" Surf 80- 0'3-5/8" 3-5/8'. Surf. Csg 40 L-80 BTC 8.835" Surf 3,548' 5-1/2" Prod Casing 17 P-110 CDC 4.892" Surf 9,268' TUBING 2-7/8" Production 1 6.4 1 L-80 I EUE-8rd 1 2.441" 1 Surf 1 7,589' OPEN HOLE / CEMENT DETAIL 9-5/8" 287 BBCs of cement in 12-1/4" Hole. Returns to Surface 5-1/2" li 330 BBL's of cement in 8-1/2" Hole. Calculated TOC 2,403' JEWELRY DETAIL No. Depth ID OD Item 1 158' Chemical injection Sub 2 171' 2.313" 4.600" SLB TRMAXX SE SCSSSV 3 7,510' Baker SAB -L Perm Packer 4 7,589' Wireline re-entry guide PERFORATION DETAIL Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Gun Size SPF Status Date 8,036' 8,074' 6,782' 6,819' 38' 2" 12 Open 01/09/15 8,176' 8,244' 6,919' 6,986' 68' 2" 12 Open 12/15/14 8,248' 8,258' 6,990' 6,999' 10' 2" 12 Open 12/13/14 8,268' 8,274' 7,009' 7,015' 6' 2" 12 Open 12/13/14 8,306' 8,318' 7,047' 7,058' 12' 2" 12 Open 12/12/14 8,768' 8,782' 7,501' 7,515' 14' 2" 6 Open 12/12/14 8,768' 8,782' 7,501' 7,515' 14' 2" 12 Open 11/25/14 8,786' 8,796' 7,519 7,529' 30' 2" 12 Open 11/25/14 8,814' 8,820' 7,547' 7,553' 6' 2" 12 Open 11/25/14 Updated by TWN 02-09-15 K Cory Abska, LLC RKB = 20.5' Hole PROPOSED SCHEMATIC 183 190a T90b 190c 190d 11359 T135b 1135c PBTD = 9,175' MD / 7,904' TVD TD = 9,310' MD / 8,038' TVD CASING DETAIL Ninilchik Unit Well: Paxton #8 PTD: 214-107 API: 50-133-20638-00 Size Type Wt Grade Conn. ID Top Btm 16" Conductor 109 X-56 Weld 16" Surf 80' 9-5/8" Surf. Csg 40 L-80 BTC 8.835" Surf 3,548' 5-1/2" Prod Casing 17 P-110 CDC 4.892" Surf 9,268' 8,244' 6,919' 6,986' 68' 2" 12 Isolate tl' T90b 8,248' 8,258' 6,990' 6,999' 30' 2" 12 Isolate 12/13/14 T90c 8,268' 8,274' 7,009' h 6' 2" 12 Isolate 12/13/14 T90d 8,306' 8,318' 7,047' 7,058' 12' 2" 12 Isolate 12/12/14 8.768' 8,782' 7,501' 7,515' 14' 2" 6 Isolate 12/12/14 T135a 8,768' 8,782' 7,501' 7,515' 14' 2" 12 Isolate 11/25/14 T135b 8,786' 8,796' 7,519 7,529' SO' iy 12 Isolate .I Hole PROPOSED SCHEMATIC 183 190a T90b 190c 190d 11359 T135b 1135c PBTD = 9,175' MD / 7,904' TVD TD = 9,310' MD / 8,038' TVD CASING DETAIL Ninilchik Unit Well: Paxton #8 PTD: 214-107 API: 50-133-20638-00 Size Type Wt Grade Conn. ID Top Btm 16" Conductor 109 X-56 Weld 16" Surf 80' 9-5/8" Surf. Csg 40 L-80 BTC 8.835" Surf 3,548' 5-1/2" Prod Casing 17 P-110 CDC 4.892" Surf 9,268' TUBING 2-7/8" Production 6.4 L-80 I EUE-8,d 1 2.441" Surf 7,589' OPEN HOLE / CEMENT DETAIL CalculatedTOC 9-5/8" 287 BBL's of cement in 12-1/4" Hole. Returns to Surface 2,403' MD 5-1/2" 330 BBL's of cement in 8-1/2" Hole. Calculated TOC 2,403' JEWELRY DETAIL No. Depth ID OD Item 1 158' Chemical Injection Sub 2 171' 2.313" 4.600" SLB TRMAXX 5E SCSSSV 3 7,510' Baker SAB -L Perm Packer 4 7,589' Wireline re-entry guide 5 ±8,000' CIBP 5-1/2" PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Gun Size SPF Status Date T65 ±7,695' ±7,766' ±6,446' ±6,516' ±71' 2" 6 TBD Proposed T83 8,036' 8,074' 6,782' 6,819' 38' 2" 12 Isolate 01/09/15 T90a 8,176' 8,244' 6,919' 6,986' 68' 2" 12 Isolate 12/15/14 T90b 8,248' 8,258' 6,990' 6,999' 30' 2" 12 Isolate 12/13/14 T90c 8,268' 8,274' 7,009' 7,015' 6' 2" 12 Isolate 12/13/14 T90d 8,306' 8,318' 7,047' 7,058' 12' 2" 12 Isolate 12/12/14 8.768' 8,782' 7,501' 7,515' 14' 2" 6 Isolate 12/12/14 T135a 8,768' 8,782' 7,501' 7,515' 14' 2" 12 Isolate 11/25/14 T135b 8,786' 8,796' 7,519 7,529' SO' 2' 12 Isolate 11/25/14 T135C 8,814' 8,820' 7,547' 7,553' 6' 2" 12 Isolate 11/25/14 Updated by DMA 02-25-19 STANDARD WELL PROCEDURE ❑ilrorl, Alaska. LLC NITROGEN OPERATIONS 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre -Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4 -gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures 02 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. 12/08/2015 FINAL vl Page 1 of 1 10,000,000 1,000,000 r Y C C0 C CL 100,000 LL V O - Y H 10,000 m O W O d V ry c 1,000 V HILCORP ALASKA LLC, NINILCHIK UNIT PAXTON 8 (214-107) NINILCHIK, BELUGA-TYONEK GAS Monthly Production Rates m 100 N 3 O L 10 i 1 Jan -2014 y y 0 10,000,000 C) m 1,000,000 Q Q 100,000 CDCD 3 z 3 S 10,000 0 W d 1 1,000 O SM 0) m n) 100 a m 3 O 3 10 S Jan -2015 Jan -2016 Jan -2017 Jan -2018 Jan -2019 Jan -2020 A Produced Gas (MCFM) ° GOR Produced Water (BOPM) �— Produced Oil (BOPM) SPREADSHEET Prod-I nject_Cu wes_W e I I_V 118_2141070_Paxton_8_20190227.xlsx 2/27/2019 • Carlisle, Samantha J (DOA) From: Schwartz, Guy L(DOA) Sent: Wednesday, February 22, 2017 9:14 AM To: Donna Ambruz Cc: Chad Helgeson;Taylor Nasse; Carlisle, Samantha J (DOA) Subject: RE: Sundry Cancellation - Sundry#315-522 Paxton 8 (PTD 214-107) Donna, Sundry#315-522 will be withdrawn as requested. Guy Schwartz Sr. Petroleum Engineer AOGCC SCANNED MAR 14 2017 907-301-4533 cell 907-793-1226 office 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 Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). From: Donna Ambruz [mailto:dambruz@hilcorp.com] Sent:Tuesday, February 21, 2017 3:08 PM To:Schwartz,Guy L(DOA)<guy.schwartz@alaska.gov> Cc:Chad Helgeson<chelgeson@hilcorp.com>;Taylor Nasse<tnasse@hilcorp.com> Subject:Sundry Cancellation-Sundry#315-522 Paxton 8(PTD 214-107) Guy, Please withdraw the above mentioned sundry. Thank you. (Donna ambit= Operations/Regulatory Tech Kenai Asset Team Hilcorp Alaska, LLC 3800 Centerpoint Drive,Suite 1400 Anchorage,AK 99503 907.777.8305- Direct 907.777.8310-Fax dambruz@hilcorp.com 1 RBDIJIS VMA - 2017 • OF rlj ��w\��\� � �s7 THE STATE Alaska Oil and Gas of/r T /` SJ(T /\ Conservation Commission �� -_ _�� 1ZL1Z �Il tt- • == 333 West Seventh Avenue —411\TR:' GOVERNOR BILL WALKER OF ALwSY'P' Anchorage, Alaska 99501-3572 Main 907 279.1433 Fax: 907.276 7542 ��++,, www.aogcc.alaska.gov Taylor Nasse ��'����� � i V Operations Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 95503 Re: Ninilchik Field, Beluga/Tyonek Gas Pool, Paxton 8 Sundry Number: 315-522 Dear Mr. Nasse: 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 AOGCC grants for good cause shown, a person affected by it may file with the AOGCC 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, "97Lt'" Cathy P. Foerster Chair St- DATED this"J1 5 day of August, 2015 Encl. RBDM SEP 0 2 2015 RECEIVED STATE OF ALASKA AUG 2 6 2015 ALASKA OIL AND GAS CONSERVATION COMMISSION S / 38 15 APPLICATION FOR SUNDRY APPROVALS AO CC 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Pull Tubing ❑ Operations shutdown ❑ Suspend ❑ Perforate []• Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrii❑ Perforate New Pool ❑ Repair Well Li Re-enter Susp Well ❑ Other. ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Hilcorp Alaska,LLC Exploratory ❑ Development 0 . 214-107 • 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service ❑ 6.API Number: Anchorage,AK 99503 50-133.20638-00 • 7.If perforating. 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? C.O.701 Ninilchik Unit Paxton 8 Will planned perforations require a spacing exception? Yes ❑ No Q • 9.Property Designation(Lease Number): 10.Field/Pool(s): - Fee-Private;ADL 384372 ' Ninilchik/Beluga-Tyonek Gas Pool • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured). Junk(measured): 9,310' • 8,038' ' 9,175' 7,904' N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 16" 80' 80' N/A N/A Surface 3,525' 9-5/8" 3,548' 2,987' 5,750 psi 3,090 psi Intermediate Production 9,248' 5-1/2" 9,268' 7,996' 10,640 psi 7,480 psi Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size. Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 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 ❑✓ 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic❑ Development 111' Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: September 9,2015 OIL ❑ WINJ ❑ WDSPL ❑ Suspended Cl 16.Verbal Approval: Date: GAS Q • WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative. GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Taylor Nasse Email tnasseahilcorp.com Printed Name a IIoor�Nasse Title Operations Engineer / Signature Phone 907-777-8354 Date 6,/�(�/ ,-) COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 15 - 522 Plug Integrity ❑ BOP Test Li Mechanical Integrity Test ❑ Location Clearance ❑ Other: Spacing Exception Required? Yes ❑ No Subsequent Form Required: / y0 1 APPROVED BY Approved by: PCOMMISSIONER THE COMMISSION Date: 8. 3 k../..s- i-.2(.0 /..s- n A Y ?-(u [S- Submit Form and Form 10-403 vised 5/2015 JIrf1'I14 olid for months from the date of approval. achments in Duplicate • Well Prognosis Well: Paxton#8 Hilcoru Alaska,Lb Date:8/25/2015 Well Name: Paxton#8 API Number: 50-133-20638-00 Current Status: Producing Leg: Estimated Start Date: September 9, 2015 Rig: Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 214-107 First Call Engineer: Taylor Nasse (907)777-8354(0) (907)903-0341 (C) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907) 229-4824 (C) AFE Number: Estimated Bottom Hole Pressure: —3,722 psi at 8,657 TVD (Assumed 0.43 psi/ft gradient) ' Max.Anticipated Surface Pressure: —2,856 psi (0.10 psi/ft gas gradient) . Brief Well Summary Paxton#8 was originally completed in 2014 in the lower Tyonek sands and is currently flowing at 1.6 MMSCFD at 130 psig. Objective of Work Add perforations in the Tyonek sands. • E-Line Procedure 1. MIRU e-line and PT lubricator to 250 psi low/3,500 psi high. ✓ 2. Perforate the Tyonek sands with 2" 6 SPF 60 deg phased perf guns. Depths are from the Halliburton CBL performed on Oct. 30, 2014. Make correlation pass and send log in to Dave Buthman and Taylor Nasse. Record tubing pressures before and after each perforating run. Record condition of gun. Proposed Perforated Intervals Sands Top (MD) Btm (MD) FT Tyonek T-65 ± 7,700' ± 7,753' ±53 . 3. RD E-line. 4. Turn well over to production. Attachment: Proposed Wellbore Schematic • Ninilchik Unit II SCHEMATIC Well: Paxton #8 PTD: 214-107 API: 50-133-20638-00 Hdrorp Alaska,LU RKB=20.5' CASING DETAIL libl ;� Size Type Wt Grade Conn. ID Top Btm 16" 16" Conductor 109 X-56 Weld 16" Surf 80' [III 11111 : 9-5/8" Surf.Csg 40 L-80 BTC 8.835" Surf 3,548' kj 14.4 5-1/2" Prod Casing 17 P-110 CDC 4.892" Surf 9,268' TUBING ,141:1 44 2-7/8" Production 6.4 L-80 EUE-8rd 2.441" Surf 7,589' 1. no OPEN HOLE/CEMENT DETAIL 'r" CalculatedTOC 9-5/8" 287 BBL's of cement in 12-1/4"Hole. Returns to Surface 0 ig , :' '!, ' 2,403'MD 5-1/2" 330 BBL's of cement in 8-1/2"Hole. Calculated TOC 2,403' 9-5/8" ,S ,., . y ! JEWELRY DETAIL ' . No. Depth ID OD Item p �+', 1 158' Chemical Injection Sub ^�'; 2 171' 2.313" 4.600" SLB TRMAXX 5E SCSSSV Lik. r'' 3 7,510' Baker SAB-L Perm Packer L .._' 4 7,589' Wireline re-entry guide r PERFORATION DETAIL `4, a,„� Top Btm Top Btm Gun * , 14,+ Sands (MD) (MD) (TVD) (ND) Amt Size SPF Status Date "1 " T65 7,700' 7,753' 6,451' 6,503' 53' 2" 12 Proposed s '► Y 183 8,036' 8,074' 6,782' 6,819' 38' 2" 12 Open 01/09/15 8-1/2" 3 T90a 8,176' 8,244' 6,919' 6,986' 68' 2" 12 Open 12/15/14 Hole 1:.P. : T90b 8,248' 8,258' 6,990' 6,999' 10' 2" 12 Open 12/13/14 ,.k T90c 8,268' 8,274' 7,009' 7,015' 6' 2" 12 Open 12/13/14 a T90d 8,306' 8,318' 7,047 7,058' 12' 2" 12 Open 12/12/14 1 ` T135a 8,768' 8,782' 7,501' 7,515' 14' 2" 6 Open 12/12/14 " 8,768' 8,782' 7,501' 7,515' 14' 2" 12 Open 11/25/14 ' i T6.5 T135b 8,786' 8,796' 7,519 7,529' 10' 2" 12 Open 11/25/14 T83 1135c 8,814' 8,820' 7,547' 7,553' 6' 2" 12 Open 11/25/14 #N 4 T90a " T90b T90c 7, T90d ' T135a j i T135b i l T135c a 5.5" : STATE OF ALASKA ;KA OIL AND GAS CONSERVATION COMI ON GAS WELL OPEN FLOW POTENTIAL TEST REPORT la Test: U Initial U Annual U Special lb.Type Test: L]Stabilized U Non Stabilized U Multipoint ❑Constant Time ❑Isochronal Q Other. PBU 2.Operator Name. 5.Date Completed: 11 Permit to DnII Number: Hilcorp Alaska,LLC 1/9/2015 214-107 3 Address: 6.Date TD Reached' 12.API Number 3800 Centerpoint Drive,Suite 1400,Anchorage,AK 99503 9/16/2014 50-133-20638-00 4a.Location of Well(Governmental Section). 7.KB Elevation above MSL(feet): 13.Well Name and Number Surface 2997'FEL,843'FWL,Sec 13,T1S,R14W,SM,AK 166.7 Paxton 8 Top of Productive Honzon 8.Plug Back Depth(MD+TVD): 14.Field/Pool(s) 2277'FNL,2038'FEL,Sec 12,T1S,R14W,SM,AK 9,174'MD/7,903'TVD Total Depth: 9.Total Depth(MD+ND): Ninilchik/SD Tyonek Undef Gas 2074'FNL, 1966 FEL,Sec 12,T1S,R14W,SM,AK 9,310'MD/8,038'TVD 4b.Location of Well(State Base Plane Coordinates NAD 27): 10.Land Use Permit 15.Property Designation: Surface: x- 206328.93 y-2230520 26 Zone- 4 N/A ADL384372 TPI x- 207284 y-2234200 Zone- 4 16.Type of Completion(Describe): Total Depth: x- 207457 63 y-2234452 59 Zone- 4 5-1/2"Production Stnng,Perforated 17.Casing Size Weight per foot,lb I.D.in inches Set at ft 19.Perforations: From To 5-1/2" 17 4.892 9,268 8,036-8,074' 18 Tubing Size Weight per foot,lb. I.D.in inches Set at ft. 8,176-8,244' 2-7/8" 6 4# 2 441" 7,589' 8,246-8,258' 8,266-8,274' 8,306-8,318' SCANNED , / . , 8,766-6,782' 8,786-8,796' 8,814'-8,820' 20.Packer set at ft: 21 GOR cf/bbl 22 API Liquid Hydrocardbons 23 Specific Gravity Flowing Fluid(G): 7,510 N/A N/A 0.56 24a Producing through: 24b.Reservoir Temp: 24c.Reservoir Pressure: 24d.Barometric Pressure(Pa): Q Tubing ❑ Casing 122 F° psia @ Datum TVDSS psia 25.Length of Flow Channel(L) Vertical Depth(H): Gg: %CO2: %N2 %H2S. Prover Meter Run: Taps: N/A N/A 0 56 0 0 0 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff Temp. Pressure Temp. Pressure Temp Duration of Flow No Line X Onfice Size(in.) Size(in) psig Hw F° psig F° psig F° Hr. REC IVED 1. 2. X il N 3 0 2015 3 X 4 X AOGCC Basic CoefficientFlow Temp. Super Comp Pressure Gravity Factor Rate of Flow No. (24-Hour) hw Pm Factor F Factor q1 Mcfd Fb or Fp Ft g Fpv - 1. 3 4 5 Temperature for Separator for Flowing No. PrT Tr z Gas Fluid Gg G 1. 2. 3. Critical Pressure 4. - Critical Temperature 5. Form 10-421 Rg302 6 2075 CONTINUED ON REVERSE SIDE Submit in Duplicate Pc Pc2 t Pf2 No. Pt Pt2 Pc2-Pt2 Pw Pw2 Pc2-Pw2 Ps Pse Pf2-Ps2 1. 2. 3. 4. 5. 25. AOF (Mcfd) 1730 n Remarks: A PBU was run on the Paxton #8 to determine the perm and skin for our current completion (see Attachment). This data was used in the construction of our Prosper model and matches our current flowing conditions. The Prosper run for the AOF is also attached. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed !J� Title Reservoir Engineer Date 6/30/2015 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producin face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= -I 1/Z dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet(TVD) L Length of flow channel, feet(MD) n Exponent(slope) of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back-Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 7/2009 Side 2 -IEC - O:\Alaska\Fields\Ninilchik\F n\Wells\Paxton 8\Prosper\Paxton T83_T90 Reservoir (Post PBU).Out . SYSTEM SENSITIVITY ANALYSIS - Input Data . Top Node Pressure : 0 (psig) Water Gas Ratio : 0 (STB/MMscf) Condensate Gas Ratio : 0 (STB/MMscf) Surface Equipment Correlation : Beggs and Brill Vertical Lift Correlation : Petroleum Experts 2 Solution Node : Bottom Node Rate Method : Automatic - Linear Left-Hand Intersection : DisAllow iEC - O:\Alaska\Fields\Ninilchik\F n\Wells\Paxton 8\Prosper\Paxton T83_T90 Reservoir (Post PBU).Out ########################################### # SYSTEM SENSITIVITY ANALYSIS - Results # ########################################### dP Gas Oil Water Liquid VLP IPR Total dP dP dP Completion Rate Rate Rate Rate Pressure Pressure Skin Perforation Damage Completion Skin (MMscf/day) (STB/day) (STB/day) (STB/day) (psig) (psig) (psi) (psi) (psi) (psi) 0.0018064 0 0 0 2.16 947.53 0.16956 0 0 0 4.80 0.096707 0 0 0 6.52 922.31 9.27 0 0 0 4.80 0.19161 0 0 0 14.61 896.39 18.78 0 0 0 4.80 0.28651 0 0 0 23.88 869.70 28.75 0 0 0 4.80 0.38141 0 0 0 33.59 842.16 39.24 0 0 0 4.80 0.47631 0 0 0 43.50 813.69 50.30 0 0 0 4.80 0.57121 0 0 0 53.49 784.19 62.03 0 0 0 4.80 0.66611 0 0 0 63.55 753.52 74.51 0 0 0 4.80 0.76101 0 0 0 73.62 721.55 87.88 0 0 0 4.80 0.85591 0 0 0 83.72 688.08 102.29 0 0 0 4.80 0.95081 0 0 0 93.83 652.89 117.92 0 0 0 4.80 1.046 0 0 0 103.95 615.68 135.05 0 0 0 4.80 1.141 0 0 0 114.07 576.06 154.02 0 0 0 4.80 1.236 0 0 0 124.19 533.48 175.31 0 0 0 4.80 1.330 0 0 0 134.33 487.17 199.66 0 0 0 4.80 1.425 0 0 0 144.46 435.94 228.18 0 0 0 4.80 1.520 0 0 0 154.58 377.79 262.79 0 0 0 4.80 1.615 0 0 0 164.72 308.82 307.29 0 0 0 4.80 1.710 0 0 0 174.86 219.03 371.56 0 0 0 4.80 1.805 0 0 0 184.98 23.14 540.75 0 0 0 4.80 First Total Maximum Maximum Maximum Gas Total WellHead WellHead Node dP dP NoSlip Erosional C Grain Rate Skin Pressure Temperature Temperature Friction Gravity Velocity Velocity Factor Diameter (MMscf/day) (psig) (deg F) (deg F) (psi) (psi) (ft/sec) (ft/sec) (inches) 0.0018064 4.80 0 40.02 40.02 0.0061656 2.16 0.63716 1921.233 0.13305 0.0001 0.096707 4.80 0 40.47 40.47 4.05 2.47 32.944 1882.451 7.00029 0.041173 0.19161 4.80 0 40.93 40.93 11.50 3.08 64.600 1872.721 13.7981 0.084778 0.28651 4.80 0 41.38 41.38 19.99 3.83 95.030 1857.482 20.4643 0.10934 0.38141 4.80 0 41.84 41.84 28.85 4.63 123.759 1837.199 26.9452 0.12356 0.47631 4.80 0 42.29 42.29 37.83 5.47 150.395 1812.320 33.1939 0.13259 0.57121 4.80 0 42.75 42.75 46.88 6.32 175.376 1787.102 39.2536 0.13879 0.66611 4.80 0 43.21 43.21 55.95 7.19 198.420 1760.279 45.0882 0.14321 0.76101 4.80 0 43.66 43.66 65.01 8.06 218.957 1730.001 50.6259 0.14657 0.85591 4.80 0 44.12 44.12 74.08 8.94 237.880 1700.307 55.9617 0.14907 0.95081 4.80 0 44.57 44.57 83.13 9.83 255.725 1672.638 61.155 0.15096 1.046 4.80 0 45.03 45.03 92.18 10.72 271.766 1644.198 66.1152 0.15249 1.141 4.80 0 45.48 45.48 101.21 11.61 285.746 1614.298 70.8039 0.15377 -EC - O:\Alaska\Fields\Ninilchik\f >n\Wells\Paxton 8\Prosper\Paxton T83_T90 Reservoir (Post PBU).Out 1.236 4.80 0 45.93 45.93 110.23 12.51 298.794 1586.079 75.3542 0.15478 1.330 4.80 0 46.39 46.39 119.24 13.40 311.496 1560.614 79.8394 0.1556 1.425 4.80 0 46.84 46.84 128.24 14.30 322.792 1534.859 84.1229 0.15627 1.520 4.80 0 47.30 47.30 137.23 15.20 332.245 1507.785 88.1413 0.15685 1.615 4.80 0 47.75 47.75 146.22 16.10 342.190 1484.548 92.2004 0.15731 1.710 4.80 0 48.21 48.21 155.19 17.01 351.041 1461.306 96.0896 0.15768 1.805 4.80 0 48.66 48.66 164.15 17.91 358.322 1437.045 99.7385 0.15798 Erosional Maximum Liquid Gas Velocity Turner Loading Rate Flag Velocity Flag (MMscf/day) (ft/sec) 0.0018064 No No 0.096707 No No 0.19161 No No 0.28651. No No 0.38141 No No 0.47631 No No 0.57121 No No 0.66611 No No 0.76101 No No 0.85591 No No 0.95081 No No 1.046 No No 1.141 No No 1.236 No No 1.330 No No 1.425 No No 1.520 No No 1.615 No No 1.710 No No 1.805 No No . Solution Point Gas RaRate : 1.730 (MMscf/day) it te : 0 (STB/day) Water Rate : 0 (STB/day) Liquid Rate : 0 (STB/day) Solution Node Pressure : 177.03 (psig) dP Friction : 157.11 (psi) dP Gravity : 17.20 (psi) dP Total Skin : 390.54 (psi) dP Perforation : 0 (psi) dP Damage : 0 (psi) dP Completion : 0 (psi) Completion Skin : 4.80 Total Skin : 4.80 Wellhead Liquid Density : 47.235 (Ib/ft3) -iEC - O:\Alaska\Fields\Ninilchik\F ►n\Wells\Paxton 8\Prosper\Paxton • T83_T90 Reservoir (Post PBU).Out Wellhead Gas Density : 0.044274 (Ib/ft3) Wellhead Liquid Viscosity : 1.4683 (centipoise) Wellhead Gas Viscosity : 0.01084 (centipoise) Wellhead Superficial Liquid Velocity : 0 (ft/sec) Wellhead Superficial Gas Velocity : 601.149 (ft/sec) Wellhead Z Factor : 0.99763 Wellhead Interfacial Tension : 14.6536 (dyne/cm) Wellhead Pressure : 0 (psig) Wellhead Temperature : 48.30 (deg F) First Node Liquid Density : 47.235 (Ib/ft3) First Node Gas Density : 0.044274 (Ib/ft3) First Node Liquid Viscosity : 1.4683 (centipoise) First Node Gas Viscosity : 0.01084 (centipoise) First Node Superficial Liquid Velocity : 0 (ft/sec) First Node Superficial Gas Velocity : 601.149 (ft/sec) First Node Z Factor : 0.99763 First Node Interfacial Tension : 14.6536 (dyne/cm) First Node Pressure : 0 (psig) First Node Temperature : 48.30 (deg F) +++++++++++++++++++ + End of Report + +++++++++++++++++++ ` • n9✓9(PPD)Nw'NPYMwOOIYM 1 I 1 1 e TX i > --, 0 e E $8a . . . . •►i - (/') N j. O Ion z \ . „ a n co C i 00 — }. y. 'MSF- 1, `\v . X • .. . et (pp wwAd'/z!sd9m))egNnwO•bpbv Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. c,, - 10 '7 Well History File Identifier Organizing (done) ❑ Two-sided ❑ Rescan Needed RES AN: OVERSIZED: NOTES: Color Items: ❑ Maps. Grayscale Items: ogs: ❑ Poor Quality Originals: ❑ Other: ❑ Other: BY: Maria Date: (9 33 /3— /s/ Project Proofing BY: Maria Date: Vg,3 /s/ 1YF Scanning Preparation ' x 30 = ` c20 + rQ = TOTAL PAGES l 40 BY: MS Date: / a, / (Count does not include cover sheet) IM /s/ V r I Production Scanning I ' I� Stage 1 Page Count from Scanned File: 1� `T I (Count does include cover sheet) Pa se Count Matches Number in Scanni g Preparation: YES NO BY: NO Date: /„S-- /s/ 1/V Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Stage 2 Additional Well Reports: gp NO TOTAL PAGES: 65 Digital version appended by: Meredith--1\iStMichal Date: '/2 2/),5 � /s/ Final Page Count: Stage 1 + Stage 2: TOTAL PAGES: fO Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Date: /s/ Comments about this file: Quality Checked 7/8/2014 Well History File Cover Page_20140708.doc 0 - 9 . . \--1" o O • fA N 9 • N V > n a. n a o 00 C E 'E co ° E 0 o E a) .. 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' o EvE (0a E E p a www a) c ° _ 0a 0 0 0 0 0 J 3 Hilcorp Alaska,LLC RECEIVED Post Office Box 244027 Anchorage,AK 99524-4027 300 FEB 0 9 2015 Suite 1400 Centerpoint Drive Anchorage,AK 99503 / JGCC Phone: 907/777.8300 Fax: 907/777.8301 February 9, 2015 Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Paxton 8 Form 10-407 PTD: 214-107 API: 50-133-20638-00-00 Dear Commissioner: Please find the enclosed Well Completion Form 10-407 for Paxton 8. Please do not hesitate to contact me should you have any questions or need additional information. Sincerely, HILCORP ALC 1 / 4 Cody Unger Drilling Technician (907)777-8389 cdinger@hilcorp.com 1 of 1 STATE OF ALASKA ALAI_ OIL AND GAS CONSERVATION COMA ,ON WELL COMPLETION OR RECOMPLETION REPORT AND LOG la.Well Status: Oil ❑ Gas E- SPLUG ❑ Other ❑ Abandoned ❑ Suspended lb.Well Class: 20AAC 25 105 20AAC 25.110 Development 2 - Exploratory ❑ GINJ ❑ WNJ ❑ WAG ❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp.,Susp.,or 12. Permit to Drill Number: Hilcorp Alaska, LLC Aband.: '1/9/2015 - -214-107 /0/-//- 51 4' 3.Address: 6. Date Spudded: 13.API Number: 3800 Centerpoint Drive,Suite 1400 Anchorage,AK 99503 • 8/29/2014 - 50-133-20638-00-00 - 4a. Location of Well(Governmental Section): 7. Date TD Reached: 14.Well Name and Number: Surface: 2997'FEL;843'FNL,Sec 13,T1S,R14W,SM,AK- .9/16/2014 ' Paxton 8 - Top of Productive Horizon: 8. KB(ft above MSL): 166.7. 15. Field/Pool(s): 2277' FNL,2038'FEL,Sec 12,T1S, R14W,SM,AK GL(ft above MSL): 148.3• Ninilchik Total Depth: 9. Plug Back Depth(MD+TVD): SD Tyonek Undef Gas - 2074'FNL, 1966'FEL,Sec 12,T1S, R14W,SM,AK - 9175'MD/7904'TVD _ CO 701 4b. Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16. Property Designation: Surface: x- 206328.93• y- 2230520.26 • Zone- 4 •9310'MD/8038'TVD- Fee-Private;ADL 384372 TPI: x- 207284 y- 2234200 Zone- 4 11. SSSV Depth(MD+TVD): 17. Land Use Permit: Total Depth: x- 207457.63 y- 2234452.59 Zone- 4 171'/171' Surface Agreement w parcel fee owner 18. Directional Survey: Yes 0 No ❑ 19.Water Depth.if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) N/A 21. Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: ROP-DGR-EWR-ALD-CTN 2"/5"MD, DGR-EWR-ALD-CTN 2"/5"TVD,FL 7/5"MD/TVD,GRL 2"MD/TVD, • N/A LWD CL 2"MD/TVD, DDL 2"MD/TVD 23. CASING, LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 16" 109 X-56 Surf 80' Surf 80' Driven N/A 9-5/8" 40 L-80 Surf 3548' Surf 2988' 12-1/4" 233 bbl/12#, 54.4 bbl/15.2# 5-1/2" 18 P-110 Surf 9268' Surf 7996' 8-1/2" 168.5 bbl/13.5#.162 bb1/15.7# 24. Open to production or injection? Yes 2 No ❑ 25. TUBING RECORD If Yes, list each interval open(MD+TVD of Top and Bottom; Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): 2-7/8" 7,589' 7,510'/6,265' 8036-74(6782-6819 TVD),8176-8244(6919-86 TVD),8248-58(6990-99 TVD), 8268-82(7009-7023 TVD),8786-96(7519-29 TVD),8814-20(7547-53 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. TVD). Shot all with 6 spf,60 deg phase HC Nova 2"guns. Was hydraulic fracturing used during completion? Yes❑ No ❑✓ 3 tfi m DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED JAL I5 5 _ �CEIV D vcTrp- FEB 09 20'' 27. PRODUCTION TEST C ®OGG Date First Production: Method of Operation(Flowing,gas lift,etc.): AOGGC 1/3/2015 Flowing Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: 1/12/2015 24 Test Period -4 0 1,245 2.4 N/A Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API (corr): Press. 144 0 24-Hour Rate -01,245 2.4 - 28. CORE DATA Conventional Core(s)Acquired? Yes ❑ No❑., - Sidewall Cores Acquired? Yes ❑ No❑., If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25.071. Form 10 A07 Revised 101201-274 C(INTINI FD nN RE\IFRgE Submit original only Y Z'( /... 40f7/0/1--RBDMS-'3. : FEB 1 0 2015 �� ci.";. ,c G 29. GEOLOGIC MARKERS (List all formations and markers encountered). 30. FORMATION TESTS NAME MD TVD Well tested? Yes -/ No • If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if needed, BELUGA 1628 1497 and submit detailed test information per 20 AAC 25.071. BLG-45 2103 3630 BLG-50 2364 1865 BLG-50BOS 2579 2064 BLG-135 4385 2229 TYONEK 4434 7127 T5_TOP 4790 7225 T6_TOP 4940 4711 T6_BOS 4991 7567 T12_TOP 5775 5185 T20 6361 3954 T60_TOP 7506 4113 T65_TOP 7693 4073 T65_BOS 7764 6261 T83_TOP 8035 6514 T100_TOP 8388 6444 T110_TOP 8487 6781 T140 TOP 8834 3669 • Formation at TD: T145 31. List of Attachments:Well Schematic,Days vs Depth Graph,MW vs Depth Graph,Drilling and Completion Composite Report, Definitive Directional Survey,Casing and Cement Report 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Luke Keller Email: Ikeller(cr�hilcorp.com Printed Name: Luke Keller Title: Drilling Engineer Q Signature: Phone: 907-777-8395 Date: ( il� INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: 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 AAC 25.071. Form 10-407 Revised 10/2012 Ninilchik Unit SCHEMATIC well: Paxton #8 PTD: 214-107 API: 50-133-20638-00 llilcorp Alasko,LLC RKB=20.5' CASING DETAIL Size Type Wt Grade Conn. ID Top Btm 16 Acl , 16" Conductor 109 X-56 Weld 16" Surf 80' 9-5/8" Surf.Csg 40 L-80 BTC 8.835" Surf 3,548' Z. 5-1/2" Prod Casing 17 P-110 CDC 4.892" Surf 9,268' TUBING Log 61 2-7/8" Production 6.4 L-80 EUE-8rd 2.441" Surf 7,589' OPEN HOLE/CEMENT DETAIL t.0:1 IP CalculatedTOC 9-5/8" 287 BBL's of cement in 12-1/4"Hole. Returns to Surface ,,f,'; " 2,403'MD 5-1/2" 330 BBL's of cement in 8-1/2"Hole. Calculated TOC 2,403' 1 ¢ , ' r JEWELRY DETAIL b . r 3 No. Depth ID OD Item «." 1 158' Chemical Injection Sub I +L 2 171' 2.313" 4.600" SLB TRMAXX 5E SCSSSV el* 3 7,510' Baker SAB-L Perm Packer 14 4 7,589' Wireline re-entry guide it *�. ' a PERFORATION DETAIL ' Top Btm Top Btm Gun Sands Amt SPF Status Date rl (MD) (MD) (TVD) (TVD) Size T83 8,036' 8,074' 6,782' 6,819' 38' 2" 12 Open 01/09/15 I s T90a 8,176' 8,244' 6,919' 6,986' 68' 2" 12 Open 12/15/14 Hole" 1 I V ii T90b 8,248' 8,258' 6,990' 6,999' 10' 2" 12 Open 12/13/14 4 3 T90c 8,268' 8,274' 7,009' 7,015' 6' 2" 12 Open 12/13/14 441 4 4„ ,, T90d 8,306' 8,318' 7,047' 7,058' 12' 2" 12 Open 12/12/14 8,768' 8,782' 7,501' 7,515' 14' 2" 6 Open 12/12/14 ; 4 � T135a 8,768' 8,782' 7,501' 7,515' 14' 2" 12 Open 11/25/14 1'83 T135b 8,786' 8,796' 7,519 7,529' 10' 2" 12 Open 11/25/14 t4. ' T135c 8,814' 8,820' 7,547' 7,553' 6' 2" 12 Open 11/25/14 ttl ..�. ;�; T90a 90b ..44"'„, ',.".-7'. .' T90c IN . ... T135a V� YVie..14 135b ;d "�, T135c PBTD=9,175'MD/7,904'TVD TD=9,310'MD/8,038'TVD Updated by TWN 02-09-15 Hi ( ) Energy Company Composite R rt Well Name: NINU Paxton 8 Field: Ninilchik County/State: ,AK I(LAT/LONG): 2230486/206350 svation(RKB): 18.5 API#: 50-133-20638-00-00 Spud Date: 8/29/2014 Job Name: 1412366D Paxton 08 Drill Contractor Saxon 147 AFE#: 1412366D AFE$: Activity Date Ops Summary 8/24/2014 Rig Down and prep loads for transport from KBU 42-06Y to Paxton#8.Continue with maintenance projects and upgrades.Continue to work on new Purge system and Pump Rheostats.:Move Mud Pit modules and both Pump Houses.Load Rig Matts.Spot Pump Houses,so Mechanic and Electrician can continue work on Rheostats.Load Matts to Paxton Pad and spot same.;Transport miscellaneous permitted loads to Paxton and Susan Dionne staging areas.;Clean and dispose of Rig Underlayment and Felt.Travel to Paxton Pad.Remove Diverter Tee and then re-install with the outlet in the elevated position for ground clearance. 8/25/2014 Trucks to location @ 06:30:Move Pump Rooms.Scope Dog House down and prep for move.Move water Tank/Dog House,Move Generator/Accumulator Building.Crane Mast and DWKs from Sub-structure.,Crane Sub from Pony subs.Load Pony subs and remainder of rig matts.Transport loads from KGF to Paxton Pad.;Rig up Saxon 147 onto Paxton#8:Spot Pony Subs and then crane Sub-Base onto Pony Subs.Crane Drawworks&secure same.;Set and pin derrick. Set generator house,fuel tank,boiler,both mud pumps,rig water tank(doghouse),and both pit houses. Released mover @ 22:00 for the night.;Finished repair and install of fingers on board. MPI same(good). Begin hooking up electrical,low and high psi mud lines Scope doghouse up and set landings 8/26/2014 Continue rig up of Saxon 147 on Paxton#8:Hook up service lines and prep Mast for raising.Hook up electrical and plumbing in Pits and Pump Room.Raise and secure Mast.;Move offices&Breakroom trailers from KGF to Paxton Pad&set up same.Set Catwalk and Beaverslide.Set Canrig and Sperry service shacks. Hook up communications.Spot Pipe Tubs for access to Catwalk.;Crane Top Drive&Iron Roughneck to Rig Floor.;Spool drilling line onto Drawworks.PJSM. Scope mast up and secure same.Install new butterfly valve between pits 5&6.Install degasser dump line.Plumb water line to rig.;Welder repair grating on back of loading dock,install stair brackets on catwalk and install new 10"flange on pit 6 equalizer line.Seam weld containment liner for gen#3.R/U pason to trailers.;Install lower torque tube section in derrick.Set mats on liner for mud product loading dock.Install top drive.Currently 75%rigged up. 8/27/2014 PJSM,continue to R/U Top Drive.Install Kelly hose and Service Loop.Energize new Compensator cylinders with N2.Install Bails,Elevators&Saver Sub.Test run TD and Pumps.;Install Handi-Berm containment around perimeter of Rig.Electrician working on Drillers controls.Begin taking on water in Pits.;Dress Shakers with 60 mesh on#1 and 70 mesh on#2.Install 10"butterfly valve on new pit overflow between tank 5&6.;PJSM,Tighten flanges on annular.Anchor stack.R/IJ knife valve and diverter line.Total safety on location R/U gas alarm system and calibrate same.Pason installing new cables for monitoring system.;Build 560 bbls 8.7 ppg spud mud.Fill atigan tank with water,Set top drive torque.Install rig smart sensors.Organize location,Offload directional tools.Unload drill pipe from pipe baskets.;R/U derrick escape line.Install flowline sensor.Install standpipe bleed line,trip tank line.Install accumulator lines to diverter.Place diverter warning signs.Place liner under pipe racks.;Currently 90%rigged up.Continue working on rig acceptance checklist. 8/28/2014 Continue to R/U on Paxton#8.Install drain valve and plumbing on conductor.Load rig floor with XOs&safety valves.Test run the hole fill pump&inspect derrick. Set up cuttings handling equipment.;Continue to mix Spud Mud.Finish rig acceptance checklist.;Accept rig for well work @ 14:30.;Install wear bushing and then function diverter system.;Perform Diverter Test with AOGCC rep.Bob Noble.4 seconds for knife valve to open,40 seconds for Annular to close.Total Safety calibrated&demonstrated operation of Gas detection system.;Tally,Drift and P/U 118 joints of Drill pipe,rack in derrick.(Tagged fill at 125');Tally,Drift and P/U 19 joints of HWDP,2 crossovers and jars,rack in derrick.;PJSM,cut and slip 55'drilling line.Re-set and function crown-o-matic;Top drive grabber box hydraulic hose leaking.C/O hose.;Hold pre-spud meeting with DD,MWD,MI,Rig crew,Rig support crew.PJSM for M/U BHA.;Load tools to rig floor,M/U 12 1/4" Bit,Mud Motor and Stabilizer. 8/29/2014 Continue to make up BHA#1.M/U 8"DM,8"EWR-P4 DC,8"TM HOC,(1)Flex DC,XO and(1)stand of HWDP.;M/U Top Drive,fill Conductor and establish circulation.Spud Well @ 09:34 Drill from 135 to 173'.Start with 365 gpm,515 psi.50 RPM,3200 tq.;Saver Sub broke in wrong place.Re-torque clamp and attempt to break out again(failed).Caliper Saver Sub and found it to be 3/16"undergauge.Change to spare Saver Sub and install clamp.;Drill from 173'to 419'. Increase Pump Rate with depth to 475 gpm.Pump up Survey and circulate hole clean.;POOH from 419 to top DC.Pick up second 8"DC,(2)6 1/2"Flex DCs and Jars.;Continue drilling 12 1/4"hole from 419'to 740'.Begin directional build starting from 419'with 25-45'slides building from vertical to 39 deg pumping 530 gpm,1075 psi.9.93 deg inc @ 710';Continue drilling build interval from 740'to'1114'with 40'-60'slides pumping 525 gpm,1100 psi. WOB 7-15K,60 rpm, 5100-5700 torque.P/U 58K,SO 48K,ROT 42K.Av ROP 82 fph.;Pump sweeps every 250'drilled,average 100%increase in cuttings.Sweeps return @ calculated stks.No losses,Run centrifuge to maintain 8.8 ppg MW.;Currently 9.2'above the line and 1.5'to the right of the line.4.17 slide hrs.6.89 rotate hrs.25.98 deg Inc.;160 bbls hauled to disposal,Paxton 8 total 160 bbls 8/30/2014 Drill 12 1/4"Hole from 1114'to 1399.Continue sliding to build angle to 39 deg as per Directional Program.540 gpm,1300 psi.70 RPM,6500-8500 Tq.Pump high vis sweep every 250 ft.;Sweeps returning on calculated strokes with 100-200%increase in solids.Drill intermitted hard streaks(12 ft/hr with 18k WOB)44 ft/hr average ROP.;Drill Tangent section from 1399 to 1653 holding angle at 39 degrees.Experiencing intermitten down time with Pason system,(Rig manager trying to solve);Cont.drilling Tangent section f/1653.Gas began climbing quickly.Pick up and circulate out 904 units of Gas from a Sand @ 1644.Gas diminishd to 300 units and held.Circ 30 min to reduce below 150u;Drill from 1653 to 1692.Gas increased to 874 units.Note:Canrig reports hydrocarbon shows from 1644 to 1657 w/904u and 1672 to 1690 w/874u of gas.;Circulate to reduce to<150u.While circulating,increase MW from 9.1 to 9.2 ppg with Calcium Carbonate.;Drill from 1692 to 1818.increase MW from 9.2 to 9.3 ppg with Calcium Carbonate at 14 ppb.WOB 19K,67 RPM,7500-7900 torque.P/U 65K,S/O 55K,ROT 53K.;Pump sweeps every 250'drilled,average 100%increase in cuttings,sweeps back @ calc stks.Flow check well,static.;POH from 1818 to HWDP @ 820. Flowcheck well,POH to 1st flex collar @ 210'with no issues.Run 1 stand HWDP to 255'.flowcheck well,no flow.Well took 5 bbls over calculated displacement on TOH.;M/U FOSV.Monitor wellbore,service rig.;L/D FOSV.TIH from 255'to 1755',Safety ream last stand.No fill.Correct pipe displacment on TIH.;CBU,450u of gas @ BU receeding to 45u.Shakers loaded with cuttings.Load sweep in DP.;Drill from 1818'to 2030'pumping 546 gpm,1660 psi.WOB 18-20K,65 rpm 7000 7400 torq.P/U 70K,S/O 55K,ROT 60K.Av ROP 50 fph.Run centrifuge to maintain 9.4 ppg MW.No Iosses;Sweep back @ calculated stks,100%increase in cuttings.2.85 slide hrs,9.28 rotate hrs.currently.3'below the line and 2.4'left of the Iine.;;360 bbls hauled to disposal,Paxton 8 total 520 bbls 8/31/2014 Drill 12 1/4"surface hole from 2030'to 2575'.Perform periodic maintenance slides to hold 39 deg Inc.and 9.45 Azi.as per Well Plan.505 gpm,1725 psi.65 RPM,6800-7500 Tq.520 units @ 2390'.;Continue drilling ahead from 2575'to 2721'pumping 544 gpm,1850 psi.WOB 19-21K,7500-8000 torq.P/U 85K,S/O 60K,ROT 68K.MW 9.8 ppg.670u of gas from 2690'sand.;P/U off bttm,Flow check well,no flow.CBU reducing gas from 670u>95u.;Continue drilling from 2721'to 2810'with same parameters.Pump hi vis sweep.Canrig reported gas show interval from 2687'to 2711',670u.;CBU,sweep back @ calculated strokes with 60%increase in cuttings.Flow check well,no flow.;Short trip from 2810'to 1500'.Swabing,Pump out from 2494'to 2188'.20K overpulls,backream from 2188'to 2056',unable to pull on elevators.Pump out from 2056'to 1775',400u gas.;CBU,gas peak @ 400u,then dropped to 66u,shakers loaded with sand and small gravel,1 full circulation to cleanup.Mud wt out 10 ppg,run centrifuge to lower mud wt to 9.8 ppg.;Pump out of the hole from 1775'to 1720',able to pull on elevators easily from 1720'to 1500'.flow check well,no flow.;M/U FOSV,monitor well.Service rig.;L/D FOSV.TIH from 1500'to 2748.(Hole was clean on TIH):270 bbls hauled to disposal,Paxton 8 total 790 bbls 9/1/2014 Make up Top Drive @ 2748 and break rirculation.Safety Ream from 2748 to TD @ 2810.Load pipe with High Vis Sweep.;Drill 12 1/4"Surface Hole from 2810 to 3233.Sweep returned to surface on ed strokes with 300%increase in cuttings/cavings/wall cake fr Irt Trip.Canrig recorded 540 units of Trip Gas.;Drill Tangent section maintainin, 39 deg and Azi @ 9.45 as per Directional Plan.Centrifuge to MW from 10.0 to 9.9 ppg.BGG @ 75 units.530 gpm,1725 psi.;Continue drilling from 3233 to 3241 pumping 541 gpm,1700 psi.WOB 18-19K.78 rpm,7600-8000 torque.P/U 95K,S/O 65K,ROT 76K.597u of gas from 3220'sand.;Circulate,lowering gas from 597u>99u.;Continue drilling from 3241 to 3423 pumping 544 gpm,1840 psi.WOB 19K,72 rpm,7800-8200 torque.P/U 98K,S/O 70K,ROT 80K.832u of gas from 3400'sand.;Circulate,lowering gas from 832u>95u;Continue drilling from 3423 to 3493 pumping 544 gpm, 1800 psi.WOB 18-20K,70 rpm,7800-8200 torque.Run centrifuge to maintain 9.9 ppg MW.No losses.Average ROP 30 fph.;Currently 2.10'below the line and 2.79'left of the line.1.53 slide hrs,15.4 rotate hrs.;270 bbls hauled to disposal,Paxton 8 total 1060 bbls 9/2/2014 Drilling 12 1/4"surface hole from 3493 to 3554,section TD.Encountered hard formation @ 3551 with increase in torque and elevated Diff.pressure.Stopped drilling and called TD;CBU for samples.Pump high Vis Sweep to clean hole.Canrig reported consolidated Sand primarily in samples.Flow Check;POOH from 3554 to 1345.UP 98k,DN 90k.Began getting over pulls of 10k @ 3500.Pump out of the hole&rotate string @ 35 RPM.500 gpm,1500 psi.200 units of BGG consistent in returns while pumping;CBU @ 1345(end of Build section,top of Tangent).Cuttings consistently covering 50%of Shaker Screens.Pump High Vis Sweep.Hole unloaded when Sweep returned,blinding off Shakers and overloading;Flow Line.Reduce Pump Rate and circulate to clear cuttings.Pump a second sweep and circulate to surface w/25%increase in cuttings.;Straight pull(2)stands,then began seeing overpulls of 15k.Back Ream tight hole from 1220 to 450' (heavy cuttings return @ Shakers)Pump out from 450 to 330 and then straight pull remainder of BHA.;Rack back DCs.Download data and lay down Directional Tools.Bit and lower stab balled up.Bit had 2 plugged nozzles.Clear&clean rig floor. Bit grade=2/3/BU,PN,/G/E/I/WT/TD;Service rig;Load tools to rig floor.M/U 12 1/4"cleanout BHA#2,12 1/4"bit,bit sub wl flt,NM stab,2 flex collars, stab,xo,2 flex collars,xo,4 jts HWDP,xo,jar,xo,15 jts HWDP=760.93';TIH from 760 to 2000.Fill pipe,continue TIH to 3491.Safety ream last stand to 3549. P/U single,ream to 3554'tagging 3'of fill.Note:5 bbls over calculated displacement on trip TIH.No issues.;Circulate and cleanup wellbore,run centrifuge to lower MW from 10.1 ppg to 9.9 ppg.Dump 135 bbls mud.Pump hi vis sweep.Sweep back at calculated stks with 25%increase in cuttings.;;250 bbls hauled to disposal,Paxton 8 total 1310 bbls 9/3/2014 Flowcheck well,no flow.POOH from 3554'to HWDP @ 760'.Rack back HWDP,Jars and 6"DCs.Lay down 8"DCs,Stab,Bit Sub and Bit.Clear floor of slip/Trip hazards.;Pul Wear Bushing.Land Hanger in Well Head and mark Landing Joint @ RKB.(lay down same)Rig up Weatherford CRT and prep to run 9 5/8 Surface Casing.(Well static);PJSM with Weatherford and Rig crews.Make up Shoe Track.Backer-Lock connections and verify operation of Float Equipment.2 centralizers on shoe jt with stop collars 10'f/ends;1 centralizer mid jt on thread locked jt&FC jt.Run 9 5/8"BTC,L-80,40#casing per tally.fill on the fly,break circulation every 10 jts ran.Use collar clamp on 1st 15 jts ran.;Average M/U torque 9800-10000 ft lbs to base of triangle.Run casing at a moderate speed to avoid surging.Install centralizer mid tube on every other jt.42 total centralizers ran,;placing top centralizer @ 300'at jt#79.TIH to 3454.M/U 23'pup jt.and jt#85, M/U 3'pup jt,hanger and landing jt @ per cameron rep.Run hanger below table.(Ran 85 jts 9 5/8 casing total);Stage pumps up to 6 bpm,485 psi.No losses, CBU,gas peaked @ 25u>8u.Condition mud for cmt job reduce YP f/45>29,Mud WT 9.9 ppg.Note:DSM witness loading plugs in cmt head.;Set slips,Remove stabbing guide from CRT giving enough room to land hanger and circulate.Land hanger @ 23.4'RKB with casing set at 3547.9',continue to circulate and condition mud.;Shut down pump,PJSM,R/U cementing head and lines.Pressure test lines to 500/3000 psi 5 min ea.Batch 43.3 bbls of 11.1 ppg spacer.;Drop lower plug.Cementers pump 10 bbls water @ 4 bpm to kick out plug followed with 43.3 bbls of spacer pumping 4 bpm,379 psi.Batch 12 opo lead cement() 05:18.pump 233 bbls lead cement,:5 bpm @ 440 psi,71 bbls away @ 05:45 air line on primary air compresser had kink in line,repair hose.Continue pumping S r� lead @ 05:55,100 bbls pumped by 06:00.No losses.;;540 bbls hauled to disposal,Paxton 8 total 1855 bbls 9/4/2014 Continue pumping 12 ppglead cement @ 5 bpm,355 psi.Pump 233 bbls Type 1 lead cement.Pump 54.4 bbls of 15.2 ppg tail cement sta3jpQ@.Shpra�389G psi,reducing pump 2.4 bpm 109 psi.;Drop upper plug,kick out plug pumping 10 bbs water,06:58 switch to rig pump,displace cement with 9.9 ppg mud,caught pressure at 6 bbls.Displace cement pumping 5 bpm,788 psi.;140 bbls pumped,spacer @ returns,dump returns,start adding retardent @ flowline,pump 230 bbls @ 4.5 bpm,1068 psi,reduce pump to 3 bpm,926 psi.Plug bumped at 253.2 bbls.;Pressure up 500 psi over FCP(926 psi)to 1428 psi.Held for 5 minutes, no pressure drop.CIP @ 07:51,Bleed off pressure.Plug bumped.5 bbl over calculated displacement.;Total dumped:10 bbls mud interface,43 bbls seal bond spacer,70 bbls lead cement,10 bbls water.Casing was landed during cement job.100%returns entire job.;Blow down cementers plumbing.Flush stackW/cmt retarder, r3 ain-&re lush. u it 24 hr notification to AOGCC of initial BOP test @ 09:50 hrs;R/D Weatherford CRT&related equipment.;N/D Diverter,riser, annular and lines.Work on cleaning pits and hauling off spud mud.;PJSM W/crane crew.Spot BOPS @ celler.N/D DSA Clean flutes.N/U Seaboard multibowl well head assy. Inject plastic packing&install pressure seal's.P/T void 300/3000 PSI For 30 Min.per Cameron rep;P/U&stack lower rams mud cross,double gate and annular.torque bolts.Install choke&kill line valves, flow line and catch can.Install mud cross lines.Fill pits with water,;Start building 9.5 ppg kla-shield mud.;1015 bbls hauled to disposal,Paxton 8 total 2870 bbls 9/5/2014 PJSM,continue to N/U BOPE,R/U bell nipple and flowline.Install bleed off line and fillup line.R/U accumulator hydraulic lines,choke line.Tighten flanges on stack,R/U gas buster line.;Remove bridal lines,re-install bails on top drive.Continue to build 9.5 ppg kla-shield mud.Charge compensators on top drive. Pressure up accumulator.Function BOPE.Open annulus valve.;PJSM,R/U test equipment,flood lines.Total safety on location,calibrate and test gas alarms. AOGCC rep Lou Grimaldi witness BOP test.Test BOPE with 4 1/2"test jt.Test annular to 250/2500 psi,;5 min ea.Test upper and lower 2 7/8"x 5"VBR,blind ram,HCR kill and inside kill valves,HCR choke,inside choke valves,choke manifold valves,upper and lower!BOP,2 floor valves;to 250/3500 psi 5 min ea. Perform manual and electric choke pressure drop test.Perform accumulator drawdown test.Chart record all tests.No failures.R/D test jt and test plug.Close annulas valve.;R/U TO Test casing.;Test casino T/2900 psi 30 min.'Test good" Chart record test.;R/D Test equipment&align valves for drilling.;lnstall wear bushing.Length=10"ID=9";P/U 100 jts CDS 40 x 4.5"D.P.&RIH;Slip&cut 40' Drilling line.Reset corn,recalibrate hook load.;Service rig.;POOH and stand back 50 stds.D.P.;PJSM,P/U Directional BHA#3,M/U 8 1/2"bit and 1.5 deg mud motor;;270 bbls hauled to disposal,Paxton 8 total 3140 bbls 9/6/2014 PJSM,continue to M/U 8 1/2"Directional BHA#3 Scribe motor&MWD.Download to smart tools.Load Sources.Pulse test tools.swap out jars.RIH W/HWDP Circ-T/test MWD smart tools&motor.;Drift&P/U 85 jts D.P.&RIH.;Complete Rig service.;Drill out F.C.Cmt,shoe,&rat hole+20'New hole to 3574' Tagged float collar @ 3462'&shoe @ 3548';Circ-&condition mud to 9.3 ppg in/out For F.I.T.test.;Conduct F.I.T.to 12.8 ppg EMW to 580 psi,current MW 9.3 ppg.30 psi pressure drop to 549 psi in 5 min.;Drilling 8 1/2"hole from 3574'to 3829'pumping 500 gpm,1600 psi WOB 10K,60 rpm.8500 torque.P/U 120K,S/O 70K,ROT 85K.Increase mud wt f/9.3 ppg to 9.5 ppg,vis 60.Av ROP 56 fph.;Continue drilling from 3829'to 4240'pumping 500 gpm,1900 psi.WOB 9-12K.60 rpm,8500- 9700 torque.P/U 125K,S/O 72K,ROT 92K.Av ROP 69 fph.MW 9.5 ppg,60 vis.No losses.;.82 slide hrs.4.98 rotate hrs.Currently 5.74'above the line and 1.21' left of the line.Canrig reports gas show interval,3808'-3830'850u.;;420 bbls hauled to disposal,Paxton 8 total=3560 bbls 9/7/2014 Drill 8 1/2"hole from 4240'to 4462'pumping 500 gpm.1900 psi.WOB 7-10K.60-75 rpm,8500-9700 torque.P/U 125K,S/0 72K,ROT 92K.AROP 37 fph.MW 9.7 ppg,66 vis.No losses.;Control drill ROP @ 75 fph for sample catcher. Pump tandem hi visc sweeps with 25%increase in cuttings with both sweeps.;Work through tight spot©4422'.Had to pull 100K over to break free.Washed and reamed clean with no further issues. Added 1%lube to mud system.;Continue drilling from 4462'to 4607'pumping 500 gpm,1950 psi.WOB 7-10K.60-75 rpm,8500-9700 torque.P/U 130K,S/O 80K, ROT 96K.AROP 24 fph.MW 9.7 ppg,66 vis.No losses.;lncreased lube to 2%in mud system.Slide ROP went from 18 fph to 40-70 fph.;Continue drilling from 4607'to 4802'pumping 510 gpm,1900 psi.WOB 7-10K.65-75 rpm,8500-9900 torque.P/U 130K,S/O 80K,ROT 98K.AROP 32 fph.MW 9.7 ppg,60 vis.No losses.;Canrig reports hydrocarbon shows,4270'to 4295'@ 323u,4678 to 4698 @ 233u.;Continue to drill from 4802'to 5008'pumping 505 gpm,2000 psi,WOB 8-10K,75 rpm,8500-9500 torque.P/U 135K,8/0 80K,ROT 100K.BGG 150u,Increase MW from 9.7 ppg to 9.9 ppg,Vis 60.;AROP 59 fph.;1300u gas from 4968',circulate and condition>200u gas.;Continue drilling from 5008'to 5130'with same parameters.9.9 ppg MW,61 vis.No losses.9.33 slide hrs and 6.71 rotate hrs.Currently 8'below the line and 9'left of the line.AROP 61 fph.;Load sweep in drill pipe.;180 bbls hauled to disposal,Paxton 8 total=3740 bbls 9/8/2014 Pump tandem sweeps around @ 5130'.increase MW from 9.9 ppg to 10.1 ppg due to high BGG.Simulate making connection,CBU with @ 490 GPM with 22u max gas.Flow check well.;TOH on e' 's from 5130'to 4250'with no issues.Hole in good condition to Back Ream through tight hole sections from 4250'-4220', 4120'-4065', 3990'-39A 35'-3877', 3676'-3630'.;Hole unloading with 100%increase in. ;while Back Reaming.(mostly Clay/Sand).Pump out of hole from 3630'to the 9 5/8"casing shoe @ 3548'to clean hole.;Flow check well @ shoe.Park just ouc.ide shoe and circulate hole clean with hole unloading clay/sand and 34u max gas @ end of circulation.;Service Rig;TIH on elevators from 3560'to 5070'.Wash last stand to bottom @ 5130'.Load sweep in pipe.;Continue to drill from 5130'to 5255'pumping 507 gpm,2300 psi,WOB 8-10K,75 rpm,9500-9800 torque.P/U 135K,S/O 80K,ROT 100K.MW 10.1 ppg, Vis 68.;Encounter 1180u BGG @ 5255'. Drill from 5255'to 5350'with same parameters increasing MW from 10.1 to 10.4 while drilling ahead.;Continue to drill from 5255'to 5689'pumping 505 gpm, 2300 psi,WOB 8-10K,75 rpm,8800-9800 torque.P/U 132K,S/O 85K,ROT 105K.MW 10.4 ppg,Vis 68.AROP 122 fph.;BGG @ 200-250u @ 5380'and 350- 400u @ 5600'.Increase MW in stages from 10.4 ppg to 10.8 ppg to lower BGG.;Continue to drill from 5689'to 5938'pumping 500 gpm,2300 psi,WOB 8-10K,75 rpm,8800-9800 torque.P/U 125K,S/O 92K,ROT 110K.MW 10.8 ppg,Vis 60.AROP xxx fph.;Currently 2.07'above the line and 9'left of the line.2.14 slide hrs and 8.5 rotate hrs.;;270 bbls hauled to disposal,Paxton 8 total=4010 bbls 9/9/2014 Continue to drill from 5938'to 6061'pumping 495 gpm,2300 psi,WOB 8-10K,70 rpm,8800-9800 torque.P/U 135K,S/O 90K,ROT 110K.MW 10.8 ppg,Vis 65. AROP 49 fph.;Wipe stand for connection from 6061'.Could not pull past 6043'.Lost rotation but had full circulation.Attempt to work pipe free.Could not go down. Hit jars 10 times with no sucess.;Mix and spot Lube Pill in annulus around BHA.Work pipe while putting pill in place @ 1 bpm.Hit jars 5 times staging up to 100K over.Jar pipe free @ 240K.Wash and ream to TD and clean up tight spot;Make 5 stand wiper trip to 5830'washing out of the hole and cleaning up any over pulls. TIH to TD on elevators.Wash last stand to bottom with no issues. 135K,S/O 90K,ROT 110K;Continue to drill from 6061'to 6313'pumping 495 gpm,2600 psi,WOB 8-10K,70 rpm,8800-9800 torque.P/U 134K,S/O 90K,ROT 116K.MW 11.0 ppg,Vis 65.AROP 46 fph.;lncreased MW @ 6189'from 10.8 to 11.0 ppg. Pump Hi Vis sweep @ 6280'with 150%increase @ shaker.;Continue to drill from 6313'to 6419'MD. Pumping 495 gpm,2492 psi,WOB 8-10K,70 rpm,8800- 9800 torque.P/U 134K,S/O 90K,ROT 116K.MW 11.0 ppg,Vis 65.AROP 46 fph.;Circulate and condition hole @ 6419'MD. Reciprocate pipe while pumping @ 490 gpm,2400 psi,24%f/O,30 RPM,6.4k Tq. Pumped hi-vis sweep,observed 25%increase in cuttings,sweep came back on time;TOH F/6419-T/5604'MD. Pulled clean off btm to 5604'MD. Pulled tight at 5604'MD(40k). 145k up,98k dn pumps off.;Backream out of hole due to pulling tight F/5604'-T/5049'MD. 30 rpm,400 qpm,1700 psi. 9/10/2014 Continue with wiper trip to the Shoe. Back ream from 5049'to 4450'attempting to straight pull or pump out of hole before having to back ream.;Straight pull to CSG Shoe from 4450'to 3500'with occasional over pull.Wipe all over pulls clean.;Slip and cut drill line;TIH with no issues and wash last stand to TD @ 6420';Circulate and condition mud @ 6420'MD. Pump @ 490 gpm,2600 psi. 645 units gas @ btm's up.;Rig service-Replace leaking cap gasket on MP #1.;Suction pod on#1 MP washed out.Circulate with#2 MP @ 300 GPM while welder attempts to repair suction pod.Saxon has new pod in transit to location. Repair to the pod was not sucessful.;TOH from 6421'to 3642'MD to repair#1 MP.No issues on trip out to the shoe.Hole in good condition. Took proper fill;Make MADD Pass from 3642'to 1720'while repairs are made to MP#1. MP#1 repairs finished @ 19:30. 9/11/2014 Continue logging MADD Pass from 1720'to 1530'per Geologist.;TIH from 1530' to 9 5/8"shoe @ 3548'MD.Flow check at the shoe(static);Continue to TIH from 3548'to 6376'.Fill pipe,break circulation and shoot survey @ 6376'.Wash last stand to TD @ 6419';Drlg F/6419'-T/6623'MD. Pump @ 500 gpm,2500 psi, 9.5k tq.;Drlg F/6623'-T/6840'MD. Pump @ 475 gpm,2550 psi,5k wob,P/U 125k,S/0 85k,98k ROT,10k tq on,7.5k tq off. 9/12/2014 Drilling F/6840'-T/7057'MD. Pump @ 475,2667 psi on,295 psi diff,24%,76 rpm,9.8k tq on,7.2k tq off, 55 units bgg.;Drilling F/7057'-T/7302'MD. Pump @ 485,2788 psi on,240 psi diff,25%,76 rpm,10k tq on,7.4k tq off, 34 units bgg.;Rig Service-Retorque saver sub and tighten clamps on saver sub. Svc rig.;Unable to breakout saver sub from jt of drill pipe. UD saver sub w/drill pipe. Install new saver sub and P/U single to replace laydown jt.;Drilling F/7302'- T/7380'MD. Pump @ 483,2240 psi on,98 psi diff,24%,76 rpm,9.8k tq on,7.2k tq off, 85 units bgg.;Observed 300 psi loss @ 04:57. Psi stabilized. Check surface equipment(good). Did not observe and more psi loss. Drill ahead monitor psi closely. 9/13/2014 Reciprocate pipe @ 7,380'MD 494 gpm,2137 psi. Circulated a carbide bomb to troubleshoot possible washout. Carbide gas came back on time,indicating no washout.;Continue troubleshooting. Found charge pump not working properly.Fixed.;Drlg F/7380'-T/7427'MD. Pump @ 473 gpm,2792 psi,327 diff psi,76 rpm,9.8k tq on,7.3k tq off,145k up,95k dn,118k rot(wts taken pumps off).;Unable to breakout of stump with saver sub. Saver sub kept backing out of quill on top drive. UD jt along with saver sub and replace same. Found that top drive tq was set to high for connections.;Drlg F/7427'-T/7554'MD. Pump @ 477 gpm, 2743 psi,225 diff psi,78 rpm,10.7k tq on,7.5k tq off,145k up,95k dn,118k rot(Ms taken pumps off).;Drlg F/7554'-T/7585'MD. Pump @ 472 gpm, W/2810 psi,&240 diff psi,78 rpm,10.7k tq on,7.5k tq off,145k up,95k dn,118k rot(Ms taken pumps off).;Service Rig.;Replace saver sub.Verify T.D.torque W/manual gauge.;Drlg F/7585'T/7745'WOB=14k,rpm 75,gpm 475 SPP 2550 TO on 10500 TQ off 7800 ROP 150 Diff 375 P/0-150 S/0-98 ROT-119;DrIg F/7745'T/7986'WOB 10K RPM 75 GPM 475 SPP 2600 TO on10900 TQ off 7800 P/U wt 150 S/O 98 ROT 119 Mtr Rpm 144 Diff =375;Pump hi-vis sweep Circ-hole clean 480 gpm W/2700 psi.;Trip OOH For Wiper trip F/7986 T/7500';;SPR @ 7862'MW=11.2 ppg M.P.1 @ 37stks 443 psi M.P.2 @ 30 stks 388 psi 9/14/2014 Continue wiper trip from 7500'-T/6360'MD. Tight spot @ 7274',6520',and 6430'MD. Wash and reamed through and saw no more obstructions @ these depths.;Wash and ream @ 35 rpm,9.5k tq,315 gpm,1390 psi.;Service hydraulic system on top drive. Adjust tq values.;Troubleshoot tq issues on top drive. Diagnosed failed relief valve. Replace and adjust tq values. Verify tq values w/iron roughneck and rig tongs(Tq good);TIH F/6360'-T/7922'then wash down last stand T/7986'MD. No obstructions observed during trip.;Drilling F/7986'-T/7992'MD. Pump @ 472 gpm,2664 psi,25%.;C/0 swab on#1 MP.;Drilling F/ 7992'-T/8025'P/U wt 150K S/0 98K ROT 120K WOB 12K RPM 75 GPM 475 MTR RPM 145 SPP 2675 TQ on btm 11800 TQ off btm 8500 Rop 75 Diff 275.;Continue Drilling F/8025'T/8109'MD.;UD Joint of D.P.W/Saver sub attached.Replace saver sub&jt of D.P.;Drill F/8109'T/8171'MD.;L/D Joint of D.P. W/Saver sub attached.Replace saver sub&jt of D.P.;Drill F/8171 T/8300'WOB 14K RPM 75 GPM 480 SPP 2800 PSI P/U Wt 155k 5/0 wt 99K ROT 121K TO on 11000 TO Off 8000 ROP 70 mtr rpm 145 Diff 350 ROP @ 70 through zones of intrest.;;;SPR @ 8205'MW=11.2 ppg M.P.1 @ 37stks 445 psi M.P.2 @ 30 stks 390 psi;355 bbls hauled to disposal,Paxton 8 total 5282 bbls 9/15/2014 Drilling F/8300'-T/8324'MD. Pump @ 491 gpm,3005 psi,216 psi diff,26%F/0,75 rpm,11k tq,7.5k tq off.;Rig Service-Re-Install clamp on saver sub and svc top drive.;Drilling F/8324'-T/8422'MD. Pump @ 471 gpm,2592 psi,80 psi diff,25%F/O,75 rpm,11.1k tq,7.5k tq off.;Unable to breakout saver sub from stump. Breakout saver sub from top drive and replace.;Drilling F/8422'-T/8609'MD. Pump @ 480 gpm,2724 psi,130 psi diff,25%F/0,75 rpm,11.1k tq,7.5k tq off. Decrease MW F/11.2-T/11 ppg;Pump 25 bbl his vis sweep @ 8550'MD. 100%increase in cuttings,sweep came back on time.;Observed psi slowly dropping. Circulate on#1 MP and go through#2 MP. Inspect valves and seats,clean suctions. Swap over to#2 MP and do the same to#1 MP. Circulate @ 297 gpm,1280 psi;Drill F/8609'T/8867'WOB-8 RPM-75 GPM-480 SPP-2700 P/U-155K S/0-100K ROT-128K TO ON-12,100 OFF-10,800 ROP-70 MTR RPM- 144 DIFF-350;Drill F/8867'T/9200'WOB-14 RPM-75-GPM-480 SPP-3000 P/U WT-160K S/0-100K ROT-130K TO ON BTM-12500 OFF-10000 ROP-70 MTR RPM-144&DIFF-375;;;SPR @ 9106'MW=11.0 ppg M.P.1 @ 38stks 445 psi M.P.2 @ 31 stks 384 psi;180 bbls hauled to disposal,Paxton 8 total 5322 bbls 9/16/2014 Drilling F/9200'-T/9310'MD(TD). 480 gpm,2980 psi,75 rpm,11.1k tq on,8k tq off,14k wob. Pumped sweep @ TD. 100%increase in cuttings and came / back on time.;Reciprocate and circulate @ 9310'MD(TO)'Pump @ 480 gpm,2730 psi,24%F/0,40 rpm,8k tq.;Flow check(static). pooh F/9310'-T/8000' MD.Back reaming&washing,ream&wash down through tight spots @ 9046'-8860'-8786-8660'-8350'-8140 rotating @ 40 RPM&450 GPM.UP WT=185K DN =115K;Cont-T/wash&ream through tight spots @ 7804'&7782'Through all tight spots pull back up hole with pumps and rotation off&no over pull.F/7782' PUH on elevators T/3514'hole clean.;Service T.D.Drawworks Crown&Blocks.;Cut&slip 80'of drilling line.Reset com.recalibrate hook load.;RIH F/3514'-T/ 9310'MD. Clean trip to bottom. Hole took proper fill.;Circulate and condition hole reciprocating pipe @ 9310'MD. 478 gpm,2840 psi,28%F/O,46 rpm,11.2k tq. Max gas @ btm's up 471 units,bgg 32 units;;SPR @ 9106'MW=11.0 ppg M.P.1 @ 38stks 445 psi M.P.2 @ 31 stks 384 psi;270 bbls hauled to disposal, Paxton 8 total 5592 bbls 9/17/2014 Circulate and condition hole while reciprocating pipe @ 9310'MD. Pump @ 490 gpm,2990 psi,26%F/O,37 rpm,11.2k tq,max gas @ btm's up 471 units w/31 units bgg.;Monitor well(static). TOH '0'-T/5820'MD. 220k up,115k dn @ btm. Pulled wet to 7700 Dumped 21 bbl dry job(13.1 ppg).;Monitor well , (static). Drop mud dog(drill pipe wit .1 TOH laying down F/5820'-T/3300'Pipe started pulling wet 7 MD Circulate and pump another dry job @ 4501'MD. Pulled clean.;Cont-T/UD arm pipe F/3300'T/1100'stand back in derrick 11 stds D.P.19 jts HVv -&Jars;PJSM,UD flex monel.remove R.A.sources.Download MWD tool UD Smart tools.;LID Stabilizers Float sub Drain motor Break&grade bit UD Motor&jars 3rd party tools clean rig floor.;Service T.D.&Drawworks.;M/U bit,bit sub TIH T/4450';;90 bbls hauled to disposal,Paxton 8 total 5832 bbls 9/18/2014 Cont TIH F/4000'-T/5620'MD. No obstructions.;Monitor well(static). Pump dry job and drop wiper(mud dog).;TOH laying down drill pipe F/5620'-T/surface. Hole took proper displacement.;Pull wear ring and dummy run 5.5"hagr as per Cameron. Dummy run(good).;Change upper pipe rams to 5 1/2";Set test plug. R/U test equipment,flood BOPE.Test upper 5 1/2"rams per AOGCC 250/3500psi 5 min R/D test equipment.Pull test plug.;Service T.D.&Drawworks;PJSM. R/U CRT,service loop,hyd elevators,air slips Load centralizers to rig floor,load casing on racks.;M/U Shoe track&float equip.Baker lock threads fill&test floats(good)run 5 1/2"casing as per detail T/3400'MD.;;340 bbls hauled to disposal,Paxton 8 total 6172 bbls; IA IL 9/19/2014 RIH w/5.5"P-110,17#,CDC casing F/3350'-T/9277 MD. Landed out w/60k string wt. Circulated 1.5 btm's @ 3650',6750'. Max gas 371 units.;P/U out of wellhead T/9270'MD. Break circulation staging up to 7 bpm,1031 psi,18%F/O. 220k up,80k dn.R/D casing tools and unneeded equipment. Bring baker cmt tools to floor.;Attempt to land hgr in wellhead. No success,unable to p/u or s/o. Maintained good circulation throughout. Decision made to set"E"slips. 120k string wt,set rotary slips and disengage CRT.;Final casing set depth 9270'MD. 7.45'stickup above landout mark.;Circulate and condition mud @ 9270'MD reducing YP to 25 and MW F/11.2-T/11. Stage pumps up to 7 BPM,590 psi,17%F/O.;Rig up drop plug head and hard lines. Continue to circulate hole through bypass with rig pumps. PJSM w/Baker Hughes Cementers.;Perform cmt job as follows: Drop btm plug,pump 5 bbls FW,load top plug and test lines to 1200/5700 psi. PT good.Open to well and batch spacer.;Pump 13 ppg spacer @ 3.7 bpm,w/425 psi ICP(pumped 41 bbls spacer). Batch cement and pump. Pump 13.5 ppg class"G"cement @ 4.5 bpm(pumped 168 bbls cement Lead)'Pumped 15 7 ppg class"G"cement @ 2.8 bpm(pumped 161 bbls cement Tail).;Drop top plug,wash up to slop tank and displace with 6%KCL(Filtered to 3 NTU's). Bumped plug @ 212 bbls. FCP 2369 psi. Psi up 2847 hold for 5 min then bleed off(floats held,bleed back 2 bbls;Maintain good returns during cement job from start to finish.;Test 5.5"casing T/3520 psi 30 min 0 pressure loss test good.;W.O.C.R/D cementers.Prep to set E slips;180 bbls hauled to disposal,Paxton 8 total 6352 bbls 9/20/2014 Nipple down 11",class IV stack. Raise up to allow room for wellhead hand to set slips.Secure stack. Had trouble getting bridge cranes to raise stack.Clean mud pits.;Cameron wellhead tech set"E"slips. Set w/75k string wt. Make cut and UD same.cutoff jt(#206)14". Contine cleaning pits,R/D total safety and R/D / weatherford casing.;N/D BOPS,Remove stack from above wellhead.;Install packoff&wellhead P/T to 5000 psi.Install BPV and temp.abandonment cap.;Clear r rig floor,prep&scope down mast.UD torque tube.clean pits.Prep.&secure derrick.UD same.prep.rig mods.to move from paxton#8 to#7;;;565 bbls hauled to disposal,Paxton 8 total 6917 bbls 51; 7 Rig released @ 06:00 hrs Sept-21-2014 1 9/21/2014 Hilcorp Energy Company Composite COMPLETION Report Well Name: NINU Paxton 8 Field: Ninilchik County/State: ,AK (LAT/LONG): 2230486/206350 =_vation(RKB): �1/ (' API#: 50-133-20638-00-00 L�" %911 '! Spud Date: 6 Job Name: 1412366C Paxton 08 Completion 5 Contractor f�`„ 3 �/ AFE#: 1412366C J AFE$: Activity Date Ops Summary 10/28/2014 Move from Paxton 7 to Paxton 8. RU and PT lubricator-good,RIH with 4.48"GR/JB to 9,107'SLM. Work down to 9,108'SLM. POOH. Junk basket empty., MU 2"DD bailer to 9,107'SLM and work down to 9,109'SLM. Started getting sticky. POOH. At surface and bailer full of wet cement.,RD and spot equipment on Paxton 7 10/29/2014 Arrive Paxton pad. Hold PJSM. RU and PT lubricator-good.,MU and RIH with 2"JDC to 2,201'SLM and latch ball/rod. POOH and LD same.,MU 2-1/2"GS and RIH to 2,208'SLM and latch RHC-P. POOH and LD same.,MU 2"DD bailer and RIH to 3,421'SLM. Work bailer. POOH and bailer full of wet cement., RD and clean up. 10/30/2014 Arrive at location and RU.,MU Neutron tool and RIH to 9,120MD.,Start logging with repeat pass. Log from 9,120'to 8,900'MD.,Run back to bottom and start main pass. Log from 9,120'to surface.,At surface with neutron tool. Lay down logging tool.,RU to run CBL. RIH with CBL to 1600'and make calibration/free pipe pass.,RIH with CBL to 9,120'MD.,Start logging repeat pass from 9,120'to 8,850'MD. Run back to bottom.,Run CBL tool from 9,120'to 1,000'MD. POOH.,At surface with CBL.SDFN. 11/7/2014 Moved Moncla 401 and associated equipment from Swanson River,,,Laid contaiment and spotted beam,M401,Koomey Building,Generators,Diesel Tank. 11/8/2014 Held JSA.,Raised the Derrick and secured the guide lines.,Spotted Pit,Pump,manifold and heaters.,ND temp tree and NU the 11"x 7"Tbg Head.Installed BPV.,Worked on Koomey Unit,Pit Enclosures and replaced valves on the choke manifold.,NU 7"BOP's,Choke and Kill lines.,Connected circulating lines. Pulled BPV.MU test plug and 2-7/8"Test Jt.Landed test jt and secured.Prepped for Shell test. 11/9/2014 Held JSA.,Preformed shell test and functioned Koomey unit.Installed gas detection. n lV` Called State Inspector. (J 11/10/2014 Held JSA/Crew change out.,Continued TIH w/Bit and Scraper.Reciprocated scraper thru pkr twice from 7,500'to 7,700'.Continued TIH.Tagged bottom at 9,158'.Total of 290 jts in the hole.PU ljts and shut pipe rams.,MU Kelly hose and rev circulated 200bls.At bottoms up returns had small amounts of cement. Continued circulating until clean.,LD Kelly holes and open pipe rams.TOOH UD 58 jts and racked back 116 stands.,Tallied completion Jewlery.MU and TIH w/2-7/8"WLEG,1jt of 2-7/8 8rd,x-nipple,1 jt of 2-7/8"8rd,Hydraulic Pkr,232 jt of 2-7/8",2-7/8"SSSV,2-7/8"Chem Inj Sub,4 jts of 2-7/8"8rd and tbg hanger. SSSV set @ 169'. Chemical Injection Sub set at 156'. 16 SS Bands were used to secure control lines.,Landed Tbg Hanger and reversed circulated 115 bbls of 8.6 ppg KCL with 55 gals of corrosion inhibitor., Dropped ball/rod,with casing valve opened and pressured up on tbg to 5,000psi.Held for 15mins to set packer.Tested the tbg to 3,500psi for 30 mins and charted-Test ok. 11/11/2014 Held JSA,crew change.,Bleed tbg pressure to 1,500psi.Pressured up on csg to 2,100psi and charted for 30min.Test was good.,Set BPV and ND BOP's/NU PT.Tested Tree to 5,000psi.Test ok.Pulled BPV. Left 5,800psi on SSSV.,RDMO M401 and associated equipment. 11/12/2014 Fill out permit to work.,SLB on location with fluid pump. Held JSA and Safety meeting with SLB and Pollard slick line. Discussed job rig up procedure for slick line in effort to allow SLB coil to rig up while slick line making runs in hole.,SLB rigging up. Slick line RIH. Pull Rod and ball. 2nd run pull pack off. Slick line rigging down and moving to Paxton 7. SLB move in crane and rig BOPs to Well.,SLB start BOP test. Draw down test good. All pressure sealing rams and wellbore fliud block valves tested to API regulations. Low pressure 250 psi/high pressure 4,500 psi. BOP test good with no failures. State notification given on 11-11-14 at 1313. Witness wiaved by Jim Regg on 11-11-14 at 1441. Well secure. Crews off location. 11/13/2014 Hold JSA and safety meeting.,Fire equipment check oils and fluids.,Pick injector head/pick lubricator/make up BHA/ Injector head on the well.,Stab on well. Chain off injector head. Fluid pack to tank for pressure test. Low pt 250 for 5 minutes/high pt 4,500 for 5 minutes.,Open well RIH. Cooling down N2.,Online N2 at 8,900 FT. 400 scf/min. Vac truck on location. N2 at 1500 SCF/MIN. Tagged at 9,146 ft CTMD. Pick up 5 ft off bottom and blow well down.,N2 to surface,80 bbls recovered.,POOH,shut in choke. 1,700 psi on wellhead. Pull to surface.,Back online with N2 at 1,000 scf/min to pump up wellhead pressure. Swab closed 1,865 psi on wellhead,as per Jeff Allen and Taylor Nasse.,Bleed down coil. Start rigging down. Called for permit and low boy to demobe crane and park at Bart pad.,Move equipment to Bart pad. Roll up herculite liner and place choke,iron racks to edge of pad to make room for rig. Wellhead masters and swab secured. Leaving location. 11/25/2014 PTW JSA and SIMOPs.Spot equipment and rig up lubricator.MU 2"x 6'RTG HC,6 spf,60 deg phase.PT lubricator to 250 psi low and 3,500 psi high.Well head flange was leaking.Wait for hammer wrench and tightened flange.TP 1900 psi.,RIH with 2"x 6'RTG HC,6 spf,60 deg phase and tie into Halliburton CBL dated 30-Oct-14.Run correlation log and send to town. FL is at 8.920'.Get ok to perf.Spot gun from 8,814'to 8,820'.TP 1,700 psi.Fired gun and no psi increase.Parked GPT tool right above perfs and bled off 200 psi.Saw about 6 deg colder change in temp.Went down and found fluid level about the same as before.POOH.,RIH with second 2"x 6'RTG HC,6 spf,60 deg phase and tie into Halliburton CBL dated 30-Oct-14.FL is at 8,900'.Spot gun from 8,814'to 8,820'.TP 1,480 psi.Fired gun and no psi increase.POOH.,RIH with 2"x 14'x 4'blank x10'RTG HC,6 spf,60 deg phase and tie into Halliburton CBL dated 30-Oct-14.FL is at 8,885'.Spot gun from 8,768'to 8,782'(4'blank)8,786'to 8,796'.TP 1,470 psi.Fired gun and no psi increase.POOH.,RIH with second 2"x 14'x 4'blank x10'RTG HC,6 spf,60 deg phase and tie into Halliburton CBL dated 30-Oct-14.FL is at 8,868'.Spot gun from 8,768'to 8,782'(4'blank)8,786'to 8,796'.TP 1,466 psi.Fired gun and no psi increase.POOH.,Rig down lubricator and turn well over to field. 12/11/2014 Pick equipment up at Bart pad and mobe to Paxton Pad.PTW and JSA.Spot equipment and rig up lubricator.Had trouble getting test skid started.Pressure tested to 250 psi low and 3,500 psi high.Drained and layed down lubricator.Had change of pert zones.Having guns built for the T90d,c and b zones.Will be back in am to shoot the T90d zone first.TP-884 psi. 4 • 12/12/2014 PTW and JSA.Warm up equipment s up lubricator.PT to 250 psi low and 35,00 psi high.Arm gi -1 w/2"x 12'HC Nova,6 spf,60 deg phase and tie into Halliburton CBL dated 30-Oct-14.Run correlation log and send to town.Get ok to perforate.Spot shot from 8,306'to 8,318'per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen.TP-925 psi.Fired gun and tubing pressure went to 931 psi in 3 min,933 psi-5 min,938 psi- 10 min and 940 psi in 15 min.Still building.POOH.,All fired.Could not see fluid level with guns.Gun did not seem very wet.(T90d sand),RIH w second 2"x 12'HC Nova,6 spf,60 deg phase and tie into SLB correlation log. Spot shot from 8,306'to 8,318'per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen.TP-1,038 psi.and still building.Fired gun.POOH and all shots fired.(T90d sand 2d time),RIH 2"x 14'HC Nova,6 spf,60 deg phase and tie into SLB correlation log. Spot shot from 8,768'to 8,782'(T135a)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-1,146 psi.and still building. Fired gun.1,148 psi-3 min,1,149-5 min. Still building the same POOH and all shots fired.,Rig down lubricator and turn well over to field. 12/13/2014 PTW and JSA.Warm up equipment and rig up lubricator.PT to 250 psi low and 3,500 psi high.Arm gun.,RIH 2"x 6'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,268'to 8,274'(T90c sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-760 psi.fired gun and still building approx 1 psi per min.Same as before perf.POOH.All shots fired.,RIH 2"x 10'HC Nova, 6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,248'to 8,258'(T90b sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-781 psi.fired gun and still building approx 1 psi per min. Same as before perf. POOH. The gun did not fire.Miss-Run.,RIH 2"x 10'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,248'to 8,258'(T90b sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-883 psi.fired gun and still building approx 1 psi per min.Same as before pert.POOH. All shots fired.,RIH second 2"x 6'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,268'to 8,274'(T90c sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-947 psi.fired gun and still building approx 1 psi per min.Same as before perf.POOH.All shots fired.,RIH 2"x 10'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,248'to 8,258'(T90b sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-1,012 psi.fired gun and still building approx 1 psi per min.Same as before perf.POOH. All shots fired.TP-1,043 psi and still building.,Rig down lubricator and turn well over to field. 12/14/2014 PTW and JSA. Warm equip and pickup lubricator. PT to 250 low and 3,500 psi high.Arm gun.,RIH 2"x 30'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,214'to 8,244'(T90a sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-928 psi.Fired gun and no significant pressure increase.Same build rate as before pert.POOH.All shots fired.,RIH 2"x 30'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,184'to 8,214'(T90a sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-1,004 psi.Fired gun and no significant pressure increase.Same build rate as before perf.POOH.All shots fired.,RIH 2"x 8'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,176'to 8,184'(T90a sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-1,130 psi.Fired gun and no significant pressure increase.Same build rate as before perf.POOH.All shots fired.,RIH(second gun)2"x 30'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,214'to 8,244'(T90a sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-1,236 psi.Fired gun and no significant pressure increase.Same build rate as before perf.POOH.All shots fired.,Rig down lubricator and turn well over to production.TP-1,270 psi. 12/15/2014 PTW and JSA.Warm equip and pickup lubricator. PT to 250 low and 3,500 psi high. Arm gun.,RIH w/2"x 30'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,184'to 8,214'(T90a sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-1,310 psi. Fired gun and no significant pressure increase. Same build rate as before perf. POOH. All shots fired. Second time to pert this section.,RIH 2"x 8'HC Nova,6 spf,60 deg phase and tie into SLB correlation log dated 12-12-14. Spot shot from 8,176'to 8,184'(T90a sand)per Final Approved Perforation Request Form dated 10/16/2014 submitted by Buthman/Allen TP-1,400 psi. Fired gun and no significant pressure increase. Same build rate as before perf. POOH. All shots fired. Second time to perf this section.,Rig down lubricator and turn well over to field.TP-1,425 psi and building. 12/18/2014 SPot in SLB N2 pump. Rig up 1502 in Iron to well head, (stalled 2 1/16 5M flange to flow tee on tree. Transfer n2 from transport to pump. Cool Down n2 lines. Pressure test n2 lines to 5000 psi. Pressure test good to go. Starting job with 3500 gallons of n2 on board.,Consult with production opeartors.shut in flowing well with wing. Open wel land start bullheading n2 down tubing. Started pumping at 1700 scf. Initial pressure was 104 psi on wellhead. Preasure steadily increasing. dropping ratre in 200 scf/min increments in order to keep pressure below 2200 psi initially. from 1600 to 1644 Pump rate dropped form 1700 scf/min to 500 scf/min. N2 pump cannot pump slower than 500 scf/min. Pressure 2500psi WHP.,Pressure continues to increase gradually as at 500 scf/min. 2537psi on well. N2 lost prime due to pumping so slow. Down on nitrogen at 17:15 hrs to 17:25 hrs. WHP started at 2503 psi. within 10 minutes it bleed down into formation 35psi. Back online with n2 at 500 scf/min. Current pump rate of 500 scf/min gives us 8.6 hrs of pumping 80%total volume of n2 on board.,lost prime on N2 pump. Back online 500 scf/min pressure steadily increaseing over next 3 hrs at 500 scf/min 2776psi starting and 3500 psi. at 500 scf/min never saw a break over pressure on graph or gauge. Continue steadily climbing.,Given the go ahead to increase rate but not exceed 4500 psi wellhead. Online 1200 scf/min pressured up to 4100 psi,Saw break back on graph. PRessure dropping without changing rate. walked n2 rate up to 1500 scf/min,2000 scf/min,3000 scf/min,then 4000 scf/min. at 4000 scf/min pressure climed to 4123 then steadily dropped to 4043 psi. 2nd break down noticed. 23:00 hrs out of nitrogen. Down on pump. Bleed off surface iron and notify production that we are going to flow back to open top difuser tank. Total n2 pumped 3500 gallons. or 325K SCF,SLB off location. Turned well over to production hands. Continue to fow back n2 to open top tank until LEL is read at surface. Then swap well to test. 12/30/2014 Arrive at Susan Dionne and obtain work permit.Discuss job.,Arrive at Paxton.Spot equipment and RU lubricator.PT Lubricator.,RIH with tandem gauges stopping every 500'for 5 minutes and making 30 min stop mid perforations.POOH.,OOH with gauges.Data good.RDMO. 1/2/2015 Obtain PTW. Hold safety meeting and review JSA with SLB crews,crane operators and production operator.,MIRU SLB CTU 12 with 1.5 in CT.,Start BOP test draw down. BOP test notification sent at 0640 1/2/15. Witness waived by Jim Regg,AOGCC at 1245 1/2/15. Low pressure test all rams,choke valves, and isolation valves to 250 psi low and 4,500 psi high. Pressure test successful. Picked up injector head and made up roll on connector. Pull test connector 20K. Securing location. Night cap installed on BOPE,all valves closed. PTW closed out and turned in. 1/3/2015 Obtain PTW. Hold safety meeting with SLB,ASRC crane Operator and production Operator. Discuss job procedures/steps,associated hazards.,Fire equipment,pick up injector head and 10 ft lubricator,make up BHA. Slim 1.5 in Cold roll connector/1.75in DFCV,1.75in Straight joint/1.75 in jet swirl nozzle. Stab lubricator on BOPs. Fluid pack with NEAT methanol. Pressure test low 250 psi/high 4,500 psi. 5 minute test good.,Open well. Record number of turns. Initial WHP 1,075 psi. Perform weight checks at 5,000 ft. Cooling down n2 at 5,000 ft. 7,000 ft online 1,500 scf/min. WHP at 456 psi. Exit tubing tail. Tag PBTD at 9,120'CTMD.,Returns to surface. 1,500 scf/min. WHP 500 psi. Pick up 10 ft off bottom and continue to pump nitrogen to unload wellbore fluids., Returns of fluid slowing and bringing back nitrogen. Start POOH. 7,000 ft only nitrogen back to surface. Inside tubing tail. 6,500 ft decreasing N2. Tape measure strap indicates 32 bbls returned to surface. Vac truck suck out return tank. Estimated volume 36 bbls according to vac truck driver.,Tag up at surface. Sniff return tank. Indication of LEL readings at tank. Close in well and bleed off remaining nitrogen pressure/volume.,Rigging down CTU 12. Total N2 pumped 2,298 gallons or 214,000 scf. Load equipment onto drop deck trailers. Install and pressure test Tree cap. Production bringing on well. Equipment staged on edge of location. At time of departure from location well flowing 65mcf without increasing rate. 1/9/2015 PTW and JSA.Mobe to location.Spot equipment and rig up lubricator.Pressure test to 250 psi low and 3,500 psi high.Arm gun.,RIH w/2"x 38'HC,6 spf,60 deg phase and tie into Halliburton CBL dated 30-Oct-14.Run correlation log and send to town.Get ok to perf.Spot shot from 8,036'to 8,074'.TP-174 psi flowing at 1.14 million.Fired gun and saw no psi increase but rate increased to 1.286 million.POOH.Guns were wet.,RIH w/2"x 38'HC,6 spf,60 deg phase and tie into Halliburton CBL dated 30-Oct-14.Spot shot from 8,036'to 8,074'.TP-172 psi flowing at 1.287 million.Fired gun and saw no psi increase but rate increased to 1.298 million.POOH.Guns were wet.,Rig down lubricator,turn well back over to field and clean up work area. 4 0 0 Hilcorp Energy Company Ninilchik Unit 0% 00 Paxton Paxton #8 501332063800 501332063800 rr Sperry Drilling Definitive Survey Report ; i4, 25 September, 2014 I '14 t FL ' • I 1111111MEMMIN HALLIBURTON L3! dlin9 '111 :71 Halliburton Definitive Survey Report Company: Hilcorp Energy Company Local Co-ordinate Reference: Well Paxton#8 Project: Ninilchik Unit TVD Reference: Actual @ 166.95usft Site: Paxton MD Reference: Actual @ 166.95usft Well: Paxton#8 North Reference: True Wellbore: Paxton#8 Survey Calculation Method: Minimum Curvature Design: Paxton#8 Database: Sperry EDM-NORTH US+CANADA Project Ninilchik Unit Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Well Paxton#8 Well Position +N/-S 0.00 usft Northing: 2,230,520.26 usft Latitude: 60.09581738 +E/-W 0.00 usft Easting: 206,328.93 usft Longitude: -151.60900084 Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: 148.45 usft Wellbore Paxton#8 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (0) (0) (nT) BGGM2014 8/25/2014 16.62 73.10 55,185 Design Paxton#8 Audit Notes: Version: 1.0 Phase: ACTUAL Tie On Depth: 18.50 Vertical Section: Depth From(TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (0) 18.50 0.00 0.00 15.73 I Survey Program Date 9/25/2014 From To (usft) (usft) Survey(Wellbore) Tool Name Description Survey Date 188.66 3,446.71 MWD+SC+Sag(Paxton#8) MWD+SC+sag Fixed:v2:standard dec&axial correction+sag 08/29/2014 3,446.71 9,245.70 MWD+SC+Sag(Paxton#8) MWD+SC+sag Fixed:v2:standard dec&axial correction+sag 08/29/2014 Survey Map Map Vertical MD Inc Azi TVD TVDSS +NI-S +E/-W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) Survey Tool Name 18.50 0.00 0.00 18.50 -148.45 0.00 0.00 2,230,520.26 206,328.93 0.00 0.00 UNDEFINED 188.66 0.24 74.04 188.66 21.71 0.10 0.34 2,230,520.35 206,329.28 0.14 0.19 MWD+SC+sag(1) 249.73 0.24 197.42 249.73 82.78 0.01 0.43 2,230,520.26 206,329.36 0.69 0.13 MWD+SC+sag(1) 311.17 0.19 320.98 311.17 144.22 -0.03 0.32 2,230,520.22 206,329.26 0.62 0.06 MWD+SC+sag(1) 372.11 0.19 278.78 372.11 205.16 0.06 0.16 2,230,520.32 206,329.10 0.22 0.10 MWD+SC+sag(1) 406.99 0.39 12.77 406.99 240.04 0.19 0.13 2,230,520.44 206,329.07 1.28 0.21 MWD+SC+sag(1) 469.67 2.46 5.95 469.65 302.70 1.73 0.32 2,230,521.98 206,329.29 3.31 1.75 MWD+SC+sag(1) 530.70 4.15 6.49 530.57 363.62 5.23 0.70 2,230,525.47 206,329.76 2.77 5.22 MWD+SC+sag(1) 594.11 6.26 9.88 593.72 426.77 10.92 1.55 2,230,531.14 206,330.76 3.36 10.93 MWD+SC+sag(1) 649.77 7.80 10.41 648.96 482.01 17.62 2.76 2,230,537.81 206,332.12 2.77 17.71 MWD+SC+sag(1) 710.86 9.93 10.63 709.31 542.36 26.88 4.48 2,230,547.02 206,334.07 3.49 27.08 MWD+SC+sag(1) 774.09 13.18 10.27 771.25 604.30 39.33 6.77 2,230,559.41 206,336.66 5.14 39.69 MWD+SC+sag(1) 838.20 17.36 10.94 833.09 666.14 55.92 9.89 2,230,575.92 206,340.18 6.53 56.51 MWD+SC+sag(1) 9/25/2014 11:50:45AM Page 2 COMPASS 5000.1 Build 70 Halliburton Definitive Survey Report Company: Hilcorp Energy Company Local Co-ordinate Reference: Well Paxton#8 Project: Ninilchik Unit TVD Reference: Actual @ 166.95usft Site: Paxton MD Reference: Actual @ 166.95usft Well• Paxton#8 North Reference: True Wellbore: Paxton#8 Survey Calculation Method: Minimum Curvature Design: Paxton#8 Database: Sperry EDM-NORTH US+CANADA Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +E/-W Northing Easting DLS Section (usft) (0) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°I100') (ft) Survey Tool Name 900.37 20.98 11.66 891.80 724.85 75.93 13.90 2,230,595.83 206,344.68 5.84 76.86 MWD+SC+sag(1) 962.42 23.78 11.66 949.17 782.22 99.07 18.68 2,230,618.85 206,350.02 4.51 100.42 MWD+SC+sag(1) 1,024.51 25.98 12.05 1,005.49 838.54 124.63 24.05 2,230,644.27 206,356.01 3.55 126.48 MWD+SC+sag(1) 1,087.30 29.75 10.46 1,060.99 894.04 153.41 29.75 2,230,672.90 206,362.41 6.12 155.73 MWD+SC+sag(1) 1,149.91 33.16 9.61 1,114.40 947.45 185.58 35.43 2,230,704.92 206,368.87 5.49 188.23 MWD+SC+sag(1) 1,212.20 34.36 8.70 1,166.18 999.23 219.75 40.93 2,230,738.95 206,375.20 2.09 222.62 MWD+SC+sag(1) 1,274.94 34.78 8.80 1,217.84 1,050.89 254.94 46.35 2,230,774.00 206,381.47 0.68 257.96 MWD+SC+sag(1) 1,338.06 36.20 8.43 1,269.24 1,102.29 291.17 51.83 2,230,810.08 206,387.84 2.28 294.32 MWD+SC+sag(1) 1,398.89 38.49 8.46 1,317.59 1,150.64 327.67 57.25 2,230,846.44 206,394.15 3.76 330.92 MWD+SC+sag(1) 1,459.35 38.67 9.12 1,364.86 1,197.91 364.93 63.01 2,230,883.55 206,400.81 0.74 368.34 MWD+SC+sag(1) 1,522.40 38.39 9.24 1,414.18 1,247.23 403.70 69.28 2,230,922.15 206,408.02 0.46 407.36 MWD+SC+sag(1) 1,584.67 38.28 9.57 1,463.02 1,296.07 441.80 75.59 2,230,960.09 206,415.26 0.37 445.75 MWD+SC+sag(1) 1,646.80 39.27 9.73 1,511.46 1,344.51 480.16 82.11 2,230,998.28 206,422.71 1.60 484.44 MWD+SC+sag(1) 1,707.64 39.79 9.66 1,558.39 1,391.44 518.33 88.63 2,231,036.28 206,430.16 0.86 522.95 MWD+SC+sag(1) 1,769.20 39.82 9.39 1,605.68 1,438.73 557.20 95.16 2,231,074.98 206,437.63 0.28 562.13 MWD+SC+sag(1) 1,831.98 39.33 9.78 1,654.07 1,487.12 596.64 101.82 2,231,114.24 206,445.24 0.88 601.90 MWD+SC+sag(1) 1,896.35 39.06 9.92 1,703.96 1,537.01 636.72 108.77 2,231,154.14 206,453.18 0.44 642.36 MWD+SC+sag(1) 1,957.87 38.85 9.82 1,751.80 1,584.85 674.82 115.40 2,231,192.07 206,460.73 0.36 680.84 MWD+SC+sag(1) 2,018.17 38.68 9.84 1,798.81 1,631.86 712.02 121.85 2,231,229.11 206,468.08 0.28 718.39 MWD+SC+sag(1) 2,080.11 38.47 10.22 1,847.24 1,680.29 750.05 128.58 2,231,266.96 206,475.73 0.51 756.82 MWD+SC+sag(1) 2,143.17 39.43 10.20 1,896.28 1,729.33 789.07 135.60 2,231,305.79 206,483.71 1.52 796.28 MWD+SC+sag(1) 2,205.38 40.49 10.76 1,943.96 1,777.01 828.36 142.87 2,231,344.89 206,491.93 1.80 836.07 MWD+SC+sag(1) 2,265.75 40.66 10.56 1,989.82 1,822.87 866.95 150.14 2,231,383.29 206,500.13 0.35 875.18 MWD+SC+sag(1) 2,328.19 40.81 9.17 2,037.13 1,870.18 907.09 157.12 2,231,423.25 206,508.09 1.47 915.71 MWD+SC+sag(1) 2,391.72 40.50 8.47 2,085.33 1,918.38 947.99 163.46 2,231,463.99 206,515.43 0.87 956.80 MWD+SC+sag(1) 2,452.67 40.16 8.90 2,131.79 1,964.84 986.98 169.42 2,231,502.82 206,522.33 0.72 995.95 MWD+SC+sag(1) 2,515.46 39.97 8.71 2,179.84 2,012.89 1,026.92 175.61 2,231,542.60 206,529.49 0.36 1,036.07 MWD+SC+sag(1) 2,576.84 39.74 8.43 2,226.96 2,060.01 1,065.81 181.47 2,231,581.34 206,536.29 0.48 1,075.10 MWD+SC+sag(1) 2,639.52 39.51 8.27 2,275.24 2,108.29 1,105.37 187.27 2,231,620.74 206,543.06 0.40 1,114.74 MWD+SC+sag(1) 2,700.36 39.27 8.20 2,322.26 2,155.31 1,143.58 192.80 2,231,658.80 206,549.52 0.40 1,153.02 MWD+SC+sag(1) 2,763.16 38.91 8.62 2,371.00 2,204.05 1,182.75 198.59 2,231,697.82 206,556.26 0.71 1,192.29 MWD+SC+sag(1) 2,825.05 38.71 8.11 2,419.23 2,252.28 1,221.12 204.24 2,231,736.05 206,562.84 0.61 1,230.76 MWD+SC+sag(1) 2,887.43 38.32 8.34 2,468.04 2,301.09 1,259.57 209.79 2,231,774.35 206,569.33 0.67 1,269.27 MWD+SC+sag(1) 2,949.94 38.04 8.72 2,517.18 2,350.23 1,297.78 215.52 2,231,812.41 206,575.99 0.58 1,307.61 MWD+SC+sag(1) 3,011.29 37.83 8.87 2,565.56 2,398.61 1,335.05 221.29 2,231,849.53 206,582.66 0.37 1,345.05 MWD+SC+sag(1) 3,073.36 37.66 9.08 2,614.65 2,447.70 1,372.59 227.22 2,231,886.91 206,589.50 0.34 1,382.78 MWD+SC+sag(1) 3,135.08 37.45 9.24 2,663.58 2,496.63 1,409.73 233.21 2,231,923.89 206,596.39 0.38 1,420.15 MWD+SC+sag(1) 3,198.56 37.18 8.88 2,714.06 2,547.11 1,447.73 239.27 2,231,961.73 206,603.37 0.55 1,458.37 MWD+SC+sag(1) 3,260.67 37.77 9.00 2,763.35 2,596.40 1,485.06 245.14 2,231,998.91 206,610.15 0.96 1,495.90 MWD+SC+sag(1) 3,323.84 38.10 9.15 2,813.18 2,646.23 1,523.40 251.26 2,232,037.09 206,617.21 0.54 1,534.47 MWD+SC+sag(1) 9/25/2014 11:50:45AM Page 3 COMPASS 5000.1 Build 70 Halliburton Definitive Survey Report Company: Hilcorp Energy Company Local Co-ordinate Reference: Well Paxton#8 Project: Ninilchik Unit TVD Reference: Actual @ 166.95usft Site: Paxton MD Reference: Actual @ 166.95usft Well: Paxton#8 North Reference: True Wellbore: Paxton#8 Survey Calculation Method: Minimum Curvature Design: Paxton#8 Database: Sperry EDM-NORTH US+CANADA Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-5 +E/-W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) Survey Tool Name 3,383.49 38.69 9.43 2,859.93 2,692.98 1,559.97 257.25 2,232,073.50 206,624.08 1.03 1,571.28 MWD+SC+sag(1) 3,446.71 39.32 10.04 2,909.05 2,742.10 1,599.18 263.98 2,232,112.54 206,631.76 1.17 1,610.86 MWD+SC+sag(1) 3,507.53 39.35 9.74 2,956.10 2,789.15 1,637.16 270.60 2,232,150.34 206,639.30 0.32 1,649.21 MWD+SC+sag(2) 3,600.98 40.73 10.35 3,027.64 2,860.69 1,696.35 281.09 2,232,209.27 206,651.23 1.54 1,709.03 MWD+SC+sag(2) 3,661.98 40.85 10.17 3,073.82 2,906.87 1,735.57 288.18 2,232,248.29 206,659.28 0.28 1,748.70 MWD+SC+sag(2) 3,724.71 40.51 9.80 3,121.40 2,954.45 1,775.84 295.28 2,232,288.38 206,667.35 0.66 1,789.38 MWD+SC+sag(2) 3,787.22 40.24 9.45 3,169.02 3,002.07 1,815.76 302.05 2,232,328.13 206,675.09 0.56 1,829.65 MWD+SC+sag(2) 3,848.11 40.22 9.53 3,215.50 3,048.55 1,854.55 308.53 2,232,366.75 206,682.52 0.09 1,868.74 MWD+SC+sag(2) 3,909.91 39.88 8.60 3,262.81 3,095.86 1,893.82 314.80 2,232,405.85 206,689.74 1.11 1,908.23 MWD+SC+sag(2) 3,972.91 39.62 8.13 3,311.25 3,144.30 1,933.67 320.66 2,232,445.55 206,696.57 0.63 1,948.19 MWD+SC+sag(2) 4,034.31 39.53 8.11 3,358.57 3,191.62 1,972.40 326.18 2,232,484.13 206,703.03 0.15 1,986.96 MWD+SC+sag(2) 4,097.03 39.44 7.84 3,406.98 3,240.03 2,011.89 331.72 2,232,523.48 206,709.53 0.31 2,026.48 MWD+SC+sag(2) 4,221.97 38.99 7.26 3,503.78 3,336.83 2,090.20 342.10 2,232,601.51 206,721.81 0.46 2,104.66 MWD+SC+sag(2) 4,282.14 38.94 6.92 3,550.57 3,383.62 2,127.75 346.77 2,232,638.93 206,727.39 0.36 2,142.07 MWD+SC+sag(2) 4,345.03 38.86 7.76 3,599.51 3,432.56 2,166.91 351.81 2,232,677.96 206,733.39 0.85 2,181.14 MWD+SC+sag(2) 4,406.27 38.93 8.32 3,647.17 3,480.22 2,204.99 357.19 2,232,715.90 206,739.69 0.59 2,219.25 MWD+SC+sag(2) 4,469.74 38.68 8.11 3,696.63 3,529.68 2,244.35 362.87 2,232,755.11 206,746.33 0.45 2,258.68 MWD+SC+sag(2) 4,530.35 38.21 8.12 3,744.10 3,577.15 2,281.66 368.19 2,232,792.28 206,752.56 0.78 2,296.03 MWD+SC+sag(2) 4,592.45 36.17 10.91 3,793.58 3,626.63 2,318.68 374.37 2,232,829.13 206,759.64 4.26 2,333.34 MWD+SC+sag(2) 4,654.48 35.74 13.52 3,843.79 3,676.84 2,354.27 382.08 2,232,864.52 206,768.21 2.57 2,369.68 MWD+SC+sag(2) 4,716.89 35.39 17.33 3,894.57 3,727.62 2,389.24 391.72 2,232,899.26 206,778.70 3.59 2,405.96 MWD+SC+sag(2) 4,778.80 35.94 24.59 3,944.89 3,777.94 2,422.89 404.63 2,232,932.58 206,792.42 6.89 2,441.85 MWD+SC+sag(2) 4,841.07 36.67 26.72 3,995.07 3,828.12 2,456.12 420.59 2,232,965.41 206,809.19 2.34 2,478.16 MWD+SC+sag(2) 4,902.53 37.78 26.61 4,044.01 3,877.06 2,489.35 437.28 2,232,998.22 206,826.68 1.81 2,514.67 MWD+SC+sag(2) 4,964.83 39.52 25.33 4,092.66 3,925.71 2,524.33 454.31 2,233,032.78 206,844.56 3.07 2,552.96 MWD+SC+sag(2) 5,027.62 39.78 24.71 4,141.01 3,974.06 2,560.63 471.25 2,233,068.66 206,862.38 0.75 2,592.50 MWD+SC+sag(2) 5,088.45 39.42 24.31 4,187.88 4,020.93 2,595.91 487.34 2,233,103.54 206,879.32 0.73 2,630.82 MWD+SC+sag(2) 5,150.16 39.05 23.99 4,235.68 4,068.73 2,631.53 503.31 2,233,138.75 206,896.15 0.68 2,669.43 MWD+SC+sag(2) 5,213.73 39.86 23.39 4,284.76 4,117.81 2,668.52 519.54 2,233,175.34 206,913.28 1.41 2,709.44 MWD+SC+sag(2) 5,274.89 41.14 23.79 4,331.26 4,164.31 2,704.92 535.43 2,233,211.34 206,930.06 2.14 2,748.78 MWD+SC+sag(2) 5,337.89 40.78 23.23 4,378.84 4,211.89 2,742.79 551.91 2,233,248.80 206,947.45 0.82 2,789.70 MWD+SC+sag(2) 5,398A8 40.51 22.99 4,424.81 4,257.86 2,779.09 567.40 2,233,284.71 206,963.82 0.51 2,828.84 MWD+SC+sag(2) 5,461.90 40.40 22.57 4,473.07 4,306.12 2,817.03 583.33 2,233,322.25 206,980.67 0.46 2,869.68 MWD+SC+sag(2) 5,586.07 39.79 21.64 4,568.06 4,401.11 2,891.12 613.43 2,233,395.59 207,012.56 0.69 2,949.15 MWD+SC+sag(2) 5,647.70 39.91 21.66 4,615.37 4,448.42 2,927.83 628.00 2,233,431.93 207,028.02 0.20 2,988.43 MWD+SC+sag(2) 5,709.05 41.05 20.97 4,662.04 4,495.09 2,964.93 642.47 2,233,468.67 207,043.39 2.00 3,028.07 MWD+SC+sag(2) 5,771.96 41.32 20.71 4,709.38 4,542.43 3,003.65 657.21 2,233,507.01 207,059.07 0.51 3,069.33 MWD+SC+sag(2) 5,833.42 40.96 20.27 4,755.67 4,588.72 3,041.52 671.36 2,233,544.53 207,074.14 0.75 3,109.63 MWD+SC+sag(2) 5,895.59 39.88 21.54 4,803.00 4,636.05 3,079.18 685.74 2,233,581.83 207,089.43 2.18 3,149.77 MWD+SC+sag(2) 5,957.58 38.50 22.60 4,851.04 4,684.09 3,115.48 700.45 2,233,617.76 207,105.02 2.47 3,188.70 MWD+SC+sag(2) 9/25/2014 11:50:45AM Page 4 COMPASS 5000.1 Build 70 Halliburton Definitive Survey Report Company: Hilcorp Energy Company Local Co-ordinate Reference: Well Paxton#8 Project: Ninilchik Unit TVD Reference: Actual @ 166.95usft Site: Paxton MD Reference: Actual @ 166.95usft Well: Paxton#8 North Reference: True Wellbore: Paxton#8 Survey Calculation Method: Minimum Curvature Design: Paxton#8 Database: Sperry EDM-NORTH US+CANADA Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +El-W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (°/100') (ft) Survey Tool Name 6,019.30 37.37 23.37 4,899.72 4,732.77 3,150.41 715.27 2,233,652.32 207,120.68 1.98 3,226.34 MWD+SC+sag(2) 6,081.32 36.18 23.70 4,949.40 4,782.45 3,184.45 730.09 2,233,685.99 207,136.33 1.94 3,263.12 MWD+SC+sag(2) 6,143.49 34.13 24.60 5,000.23 4,833.28 3,217.11 744.73 2,233,718.29 207,151.76 3.40 3,298.53 MWD+SC+sag(2) 6,205.73 33.28 25.29 5,052.01 4,885.06 3,248.43 759.29 2,233,749.24 207,167.08 1.50 3,332.63 MWD+SC+sag(2) 6,267.86 31.08 25.20 5,104.59 4,937.64 3,278.36 773.41 2,233,778.81 207,181.92 3.54 3,365.26 MWD+SC+sag(2) 6,329.64 30.42 25.35 5,157.68 4,990.73 3,306.92 786.89 2,233,807.04 207,196.09 1.08 3,396.41 MWD+SC+sag(2) 6,390.27 28.97 24.77 5,210.35 5,043.40 3,334.13 799.62 2,233,833.93 207,209.48 2.44 3,426.04 MWD+SC+sag(2) 6,452.56 27.54 23.67 5,265.21 5,098.26 3,361.01 811.72 2,233,860.51 207,222.23 2.44 3,455.21 MWD+SC+sag(2) 6,515.02 27.36 23.19 5,320.64 5,153.69 3,387.43 823.17 2,233,886.65 207,234.32 0.46 3,483.74 MWD+SC+sag(2) 6,577.37 27.39 22.52 5,376.01 5,209.06 3,413.85 834.30 2,233,912.78 207,246.09 0.50 3,512.19 MWD+SC+sag(2) 6,639.16 26.21 22.11 5,431.16 5,264.21 3,439.62 844.88 2,233,938.29 207,257.30 1.93 3,539.86 MWD+SC+sag(2) 6,700.99 23.85 22.92 5,487.18 5,320.23 3,463.79 854.89 2,233,962.21 207,267.89 3.86 3,565.84 MWD+SC+sag(2) 6,762.84 22.06 20.91 5,544.13 5,377.18 3,486.16 863.91 2,233,98435 207,277.45 3.16 3,589.81 MWD+SC+sag(2) 6,825.93 19.84 21.23 5,603.05 5,436.10 3,507.21 872.01 2,234,005.20 207,286.07 3.52 3,612.27 MWD+SC+sag(2) 6,887.26 17.57 20.81 5,661.14 5,494.19 3,525.57 879.07 2,234,023.38 207,293.57 3.71 3,631.85 MWD+SC+sag(2) 6,950.47 16.04 21.64 5,721.64 5,554.69 3,542.60 885.68 2,234,040.25 207,300.59 2.45 3,650.04 MWD+SC+sag(2) 7,012.72 14.79 20.86 5,781.65 5,614.70 3,558.02 891.68 2,234,055.51 207,306.97 2.04 3,666.51 MWD+SC+sag(2) 7,073.57 14.47 20.09 5,840.53 5,673.58 3,572.42 897.06 2,234,069.78 207,312.69 0.62 3,681.83 MWD+SC+sag(2) 7,135.63 14.34 19.61 5,900.64 5,733.69 3,586.94 902.30 2,234,084.17 207,318.29 0.28 3,697.23 MWD+SC+sag(2) 7,197.77 14.45 20.28 5,960.83 5,793.88 3,601.46 907.57 2,234,098.56 207,323.91 0.32 3,712.63 MWD+SC+sag(2) 7,261.09 13.82 19.38 6,022.23 5,855.28 3,616.01 912.82 2,234,112.97 207,329.51 1.05 3,728.06 MWD+SC+sag(2) 7,321.63 13.29 18.49 6,081.08 5,914.13 3,629.43 917.43 2,234,126.27 207,334.44 0.94 3,742.22 MWD+SC+sag(2) 7,383.87 12.73 18.12 6,141.73 5,974.78 3,642.73 921.83 2,234,139.46 207,339.17 0.91 3,756.22 MWD+SC+sag(2) 7,445.89 12.43 19.71 6,202.26 6,035.31 3,655.51 926.21 2,234,152.13 207,343.85 0.74 3,769.71 MWD+SC+sag(2) 7,508.34 12.22 21.73 6,263.27 6,096.32 3,667.97 930.92 2,234,164.48 207,348.87 0.77 3,782.98 MWD+SC+sag(2) 7,570.15 11.77 21.12 6,323.73 6,156.78 3,679.93 935.61 2,234,176.32 207,353.85 0.76 3,795.77 MWD+SC+sag(2) 7,631.96 11.31 19.79 6,384.29 6,217.34 3,691.52 939.94 2,234,187.79 207,358.45 0.86 3,808.09 MWD+SC+sag(2) 7,693.68 10.83 18.67 6,444.86 6,277.91 3,702.70 943.84 2,234,198.88 207,362.63 0.85 3,819.92 MWD+SC+sag(2) 7,756.59 10.77 18.05 6,506.66 6,339.71 3,713.89 947.55 2,234,209.98 207,366.62 0.21 3,831.69 MWD+SC+sag(2) 7,818.04 10.44 17.42 6,567.06 6,400.11 3,724.66 951.00 2,234,220.66 207,370.32 0.57 3,842.99 MWD+SC+sag(2) 7,880.39 10.21 16.60 6,628.40 6,461.45 3,735.35 954.27 2,234,231.26 207,373.85 0.44 3,854.17 MWD+SC+sag(2) 7,942.01 9.75 15.60 6,689.09 6,522.14 3,745.61 957.23 2,234,241.45 207,377.06 0.80 3,864.84 MWD+SC+sag(2) 8,004.32 10.39 18.64 6,750.44 6,583.49 3,756.01 960.45 2,234,251.77 207,380.53 1.33 3,875.73 MWD+SC+sag(2) 8,066.83 11.08 23.16 6,811.85 6,644.90 3,766.88 964.61 2,234,262.53 207,384.96 1.74 3,887.32 MWD+SC+sag(2) 8,128.62 11.14 21.39 6,872.48 6,705.53 3,777.89 969.12 2,234,273.44 207,389.74 0.56 3,899.15 MWD+SC+sag(2) 8,190.49 11.25 19.45 6,933.18 6,766.23 3,789.15 973.31 2,234,284.59 207,394.20 0.63 3,911.12 MWD+SC+sag(2) 8,252.82 11.07 20.31 6,994.33 6,827.38 3,800.49 977.42 2,234,295.83 207,398.58 0.39 3,923.15 MWD+SC+sag(2) 8,318.22 10.86 20.06 7,058.53 6,891.58 3,812.17 981.71 2,234,307.40 207,403.15 0.33 3,935.55 MWD+SC+sag(2) 8,381.24 10.84 20.00 7,120.43 6,953.48 3,823.32 985.77 2,234,318.44 207,407.48 0.04 3,947.38 MWD+SC+sag(2) 8,440.15 10.70 19.99 7,178.30 7,011.35 3,833.66 989.54 2,234,328.69 207,411.50 0.24 3,958.36 MWD+SC+sag(2) 9/25/2014 11:50:45AM Page 5 COMPASS 5000.1 Build 70 4 Halliburton Definitive Survey Report Company: Hilcorp Energy Company Local Co-ordinate Reference: Well Paxton#8 Project: Ninilchik Unit TVD Reference: Actual @ 166.95usft Site: Paxton MD Reference: Actual @ 166.95usft Well: Paxton#8 North Reference: True Wellbore: Paxton#8 Survey Calculation Method: Minimum Curvature Design: Paxton#8 Database: Sperry EDM-NORTH US+CANADA Survey Map Map Vertical MD Inc Azi TVD TVDSS +NI-S +E/-W Northing Easting DLS Section (usft) (°) (0) (usft) (usft) (usft) (usft) (ft) (ft) (°I100') (ft) Survey Tool Name 8,501.86 10.36 20.70 7,238.97 7,072.02 3,844.23 993.46 2,234,339.17 207,415.68 0.59 3,969.60 MWD+SC+sag(2) 8,564.02 9.96 20.16 7,300.16 7,133.21 3,854.51 997.28 2,234,349.34 207,419.75 0.66 3,980.53 MWD+SC+sag(2) 8,625.21 9.86 19.84 7,360.43 7,193.48 3,864.40 1,000.89 2,234,359.15 207,423.59 0.19 3,991.03 MWD+SC+sag(2) 8,688.17 9.59 19.54 7,422.49 7,255.54 3,874.42 1,004.47 2,234,369.07 207,427.42 0.44 4,001.64 MWD+SC+sag(2) 8,749.58 9.25 19.94 7,483.07 7,316.12 3,883.88 1,007.86 2,234,378.45 207,431.04 0.56 4,011.66 MWD+SC+sag(2) 8,811.39 9.20 19.63 7,544.08 7,377.13 3,893.20 1,011.22 2,234,387.69 207,434.62 0.11 4,021.55 MWD+SC+sag(2) 8,873.73 8.80 18.52 7,605.65 7,438.70 3,902.42 1,014.41 2,234,396.82 207,438.04 0.70 4,031.28 MWD+SC+sag(2) 8,935.46 8.34 18.10 7,666.69 7,499.74 3,911.15 1,017.30 2,234,405.48 207,441.14 0.75 4,040.47 MWD+SC+sag(2) 8,998.22 8.08 17.62 7,728.81 7,561.86 3,919.68 1,020.05 2,234,413.94 207,444.10 0.43 4,049.43 MWD+SC+sag(2) 9,059.63 7.87 17.68 7,789.63 7,622.68 3,927.80 1,022.63 2,234,422.00 207,446.88 0.34 4,057.94 MWD+SC+sag(2) 9,122.49 7.69 18.32 7,851.91 7,684.96 3,935.89 1,025.26 2,234,430.02 207,449.70 0.32 4,066.45 MWD+SC+sag(2) 9,184.14 7.38 17.75 7,913.03 7,746.08 3,943.58 1,027.76 2,234,437.65 207,452.39 0.52 4,074.52 MWD+SC+sag(2) 9,245.70 7.18 17.97 7,974.09 7,807.14 3,951.00 1,030.15 2,234,445.01 207,454.96 0.33 4,082.32 MWD+SC+sag(2) 9,310.00 7.18 17.97 8,037.89 7,870.94 3,958.65 1,032.63 2,234,452.59 207,457.63 0.00 4,090.35 PROJECTED to TD Checked By: Patrick Walker „a„.a::7 .r- Approved By: Cary Taylor E,A,.:,n�77 -r Date: 9/25/2014 11:50:45AM Page 6 COMPASS 5000.1 Build 70 $ • 4 Hilcorp Energy Company CASING&CEMENTING REPORT Lease&Well No. Ninilchik,Paxton#8 Date 4-Sep-14 County South Kenai State Alaska Supv. Douglas Yessak/Kevin McDowell CASING RECORD TD 3554.00 Shoe Depth: 3548.00 PBTD: 3463.00 Casing(Or Liner)Detail Setting Depths No.of Jts. Size Wt. Grade THD Make Length Bottom Top shoe 9 5/8 BTC Weatherford 1.90 3,548.00 3,546.11 2 jts 9 5/8 40 L-80 BTC 83.12 3,546.11 3,462.99 Float collar 9 5/8 BTC Weatherford 1.50 3,462.99 3,461.49 82 jts 9 5/8 40 L-80 BTC 3,369.41 3,461.49 92.08 1 pup jt 9 5/8 40 L-80 BTC 23.31 92.08 68.77 1 jt 9 5/8 40 L-80 BTC 41.97 68.77 26.80 1 pup jt 9 5/8 40 L-80 BTC 2.90 26.80 23.90 Hanger 16 3/4 x 11 Sea board 0.50 23.90 23.40 RKB 23.40 0.00 Totals Csg Wt.On Hook: 95000 Type Float Collar: Weatherford#303 No.Hrs to Run: 10 hrs Csg Wt.On Slips: 75,000 Type of Shoe: Weatherford#402 Casing Crew: Weatherford Fluid Description: 9.9 ppg Drilling spud mud Liner hanger Info(Make/Model): Liner top Packer?: Yes No Liner hanger test pressure: Centralizer Placement 80'spacing,42 ran,top centralizer on jt#79 at 302 ft. CEMENTING REPORT Preflush(Spacer) Type: Seal bond Density(ppg) 11.1 Volume pumped(BBLs) 43.3 Lead Slurry Type: Type 1 Gass G Density(ppg) 12 Volume pumped(BBLs) 233 � Mixing/Pumping Rate(bpm): 5 Tail Slurry Type: Neat,class G r, Density(ppg) 15.2 Volume pumped(BBLs) 54.4 / Mixing/Pumping Rate(bpm). 5 y Post Flush(Spacer) y Type: Density(ppg) Rate(bpm): Volume: LL Displacement: Type: Drilling mud Density(ppg) 9.9 Rate(bpm): 5 Volume(actual/calculated): 252.7/253.2 FCP(psi): 926 Pump used for disp: Rig pump X Plug Bumped? X Yes No Bump press 1428 Casing Rotated? Yes X No Reciprocated? _Yes X No 100%Retums during job Cement returns to surface? X Yes No Spacer returns? X Yes_No Vol to Surf 43 bbls spacer,70 bbls lead cmt Cement In Place At: 7:51 Date: 9/4/2014 Estimated TOC: Surface Method Used To Determine TOC: Visual Preflush(Spacer) Type: Density(ppg) Volume pumped(BBLs) Lead Slurry Type: Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): Tail Slurry m Type: a Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): I- 01 Post Flush(Spacer) 0 o Type: Density(ppg) Rate(bpm): Volume: NDisplacement: Type: Density(ppg) Rate(bpm): Volume(actual/calculated): FCP(psi): Pump used for disp: Plug Bumped? _Yes No Bump press Casing Rotated? Yes No Reciprocated? _Yes_No %Returns during job Cement retums to surface? Yes_No Spacer returns? Yes No Vol to Surf: Cement In Place At Date: Estimated TOC: Method Used To Determine TOC: WELLHEAD Make Sea board Type Multi bowl Serial No. 0103-B0848Y Size 16 3/4 x 11 W.P. 3M X 5M Test Head To 3000 PSIG 30 MIN test OK Remarks: Plug bumped.5 bbl over calculated.Float held. ,4 Hilcorp Energy Company CASING&CEMENTING REPORT Lease&Well No. Paxton#8 Date 19-Sep-14 County Ninilchik State Alaska Supv. Shane Barber/Kevin McDowell CASING RECORD TD 9310.00 Shoe Depth: 9268.19 PBTD: 9175.00 Casing(Or Liner)Detail Setting Depths No.of Jls. Size Wl. Grade THD Make Length Bottom Top SHOE 55" P410 CDC Davis Lynch 3.12 9,268.19 9,265.07 2 5.5" 18 P-110 CDC US STEEL 90.07 9,265.07 9,175.00 Float collar 5.5" P-110 CDC Davis Lynch 1.23 9,175.00 9,173.77 203 jts 5.5" 18 P-110 CDC US STEEL 9,109.36 9,173.77 64.41 Cutoff jt 5.5" 18 P-110 CDC US STEEL 43.87 64.41 20.54 RKB 5.5" 18 P-110 CDC US STEEL 20.54 20.54 0.00 Totals Csg Wt.On Hook: 135,000 Type Float Collar: Davis Lynch No.Hrs to Run: 15 Csg Wt.On Slips: 120,000 Type of Shoe: Reamer Casing Crew: Weatherford Fluid Description: 11.0 ppg Kla-Shield Liner hanger Info(Make/Model): NA Liner top Packer?: _Yes X No Liner hanger test pressure: NA Centralizer Placement: 86 i 44',17 @ 88' CEMENTING REPORT Preflush(Spacer) Type: SEAL BOND Density(ppg) 12 Volume pumped(BBLs) 40 Lead Slurry t) Type: Class G 12 Density(ppg) 13.5 Volume pumped(BBLs) 168.5 Mixing/Pumping Rate(bpm): 2.8 Tall Slurry Type: Class G Density(ppg) 15.7 Volume pumped(BBLs) 161.8 Mixing/Pumping Rate(bpm): 2.8 y Post Flush(Spacer) 3 Type: Density(ppg) Rate(bpm): Volume: 0 Displacement: Type: 6%KCL Density(ppg) 8.6 ppg Rate(bpm): 6 Volume(actual/calculated): 212/213 FCP(psi): 2379 Pump used for disp: Baker Plug Bumped? X Yes No Bump press 2825 Casing Rotated? Yes X No Reciprocated? Yes x No %Retums during Job 100 Cement returns to surface? Yes x No Spacer retums? Yes x No Vol to Surf: Cement In Place At: 0:33 Date: 9/20/2014 Estimated TOC: 2,403 Method Used To Determine TOC: Calculation of lift pressure Preflush(Spacer) Type: Density(ppg) Volume pumped(BBLs) Lead Slurry Type: Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): Tall Slurry w Type: a Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): ,,..g o Post Flush(Spacer) o Type: Density(ppg) Rate(bpm): Volume: NDisplacement: Type: Density(ppg) Rate(bpm): Volume(actual/calculated): FCP(psi): Pump used for disp: Plug Bumped? Yes No Bump press Casing Rotated? Yes No Reciprocated? Yes No %Retums during job Cement retums to surface? Yes No Spacer returns? Yes No Vol to Surf: Cement In Place At: Date: Estimated TOC: Method Used To Determine TOC: Post Job Calculations: Calculated Cmt Vol @ 0%excess: 89.7 Total Volume cmt Pumped: 330.3 Cmt retumed to surface: 0 Calculated cement left in wellbore: 330.3 OH volume Calculated: 233.4 OH volume actual: 245 Actual%Washout: 13 Paxton #8 Days Vs Depth 0 Paxton 8 ACTUAL 1 DrId surface hole with 12-1/4"security mill Paxton 8 1000 tooth bit. Saw gas shows,drilling slower at casing point. 2000 3000 .40A lie 4000 L G aJ Extra time circ and 5000 -a, weighting up mud due ' to gas shows. CO v i 6000 — h 1 i ili a Trouble sliding, unable to slide near end of 7000 - r well. Had to rotate Wiper trip, mud pump \ reapairs, MADD pass \ out. across casing. 8000 Connection issues with CDS 40,saver sub 9000 — continuing to back out 10000 0 5 10 15 20 25 30 35 Days • Paxton #8 MW Vs Depth -Paxton 8 ACTUAL 500 -Paxton 8 Plan 1000 '""\\ 1500 2000 2500 3000 3500 4000 4500 a v 5000 v 5500 2 6000 6500 7000 7500 8000 8500 9000 9500 10000 8 9 10 11 12 13 14 Mud Density(ppg) 4 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: January 9, 2015 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: SVS Inspection Petroleum Inspector n PaxtonNinilci 8 (PT/ it D 2141070 Falls Creek 6 (PTD 2141370) Hilcorp 1/7/2015: Traveled to Ninilchik Unit Paxton pad for SVS test of Paxton #8 and met with Hilcorp representative Charles Gomes (Pad operator). Paxton #8 passed the SVS test but the well cellar was completely frozen in – photo attached. Told Mr. Gomes to get cellar thawed out to where they could get at the annulus valves. Next I traveled to Falls Creek pad to perform an unannounced SVS test on Falls Creek #6. This was requested by AOGCC Inspection Supervisor Jim Regg since witness was waived for the initial SVS test (performed 12/10/14) due to lack of an available Inspector. Falls Creek #6 passed the SVS test. Based on observations at both locations, it appears that Hilcorp has no plans for placing wellhouses over wells they have added on these pads, deviating from the practice employed by initial operator Marathon. Unannounced visits during cold weather would be appropriate to confirm there are no freezing problems with the SVS. Summary: Paxton #8 and Falls Creek #6 passed AOGCC witnessed SVS tests performed on 1/7/15. Paxton #8 has a frozen well cellar; instructions were left with Hilcorp to thaw the cellar. Attachments: Photo (Paxton #8 frozen well cellar) 1/206- — L(ow-Ki) ��1�t�E � n°-p J cAF - Sec ce-i eci 20 1 5-0 109_Location Paxton-8_Fa11sCk-6_1g.docx Page 1 of 2 2-‘4-‘o-; II Seth Nolan Hilcorp Alaska, LLC Z 5 Z2.2'GeoTech 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8308 Ilarnrp tla,di a.Li( Fax: 907 777-8510 DATA LOGGED E-mail: snolan@hilcorp.com i /LI/201 M.K.BENDER DATE 01/23/14 To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 8 Digital Survey Data CD: Paxtcn=3 - Definitive Surer 9/26/2014 11:52 AM Text Dccument 10 KB a Paxtcn 3- Definitive Survey 9/26/201411:52 AM PDF Dccument 155 KB Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: ✓etgadz4c.,/,) Date: `, 6 JAN 2 6 206 AOGCC Paxton #8 (PTD 2141070) Photo by AOGCC Inspector L. Grimaldi 1/7/2015 Well houses over wells that W.. were drilled prior to Hilcorp taking over Paxton pad operations SIP MitJ fI T • AA- - f , - .1 :,..,e+rs.,, Paxton#8 frozen well cellar;annulus valves are below ice 2015-0109_Location_Paxton-8_FallsCk-6_1g.docx Page 2 of 2 Regg, James B (DOA) From: Noble, Robert C (DOA) Retici lfry//5 Sent: Wednesday, January 21, 2015 11:42 AM 11 l To: Regg, James B (DOA) Subject: Paxton #8 (Prt 26410io) Paxton #8 water was gone except for it being wet in the bottom. I could not take a picture as they were bleeding gas for E-line work. Bob Noble AOGCC 333 W. 7th Ave. Ste. 100 Anch AK. 99501 Cell 907-299-1362 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 Bob Noble at 907-299-1362 or bob.noble@alaska.gov l Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday,January 06, 2015 3:19 PM To: 'Taylor Nasse' Subject: RE: Paxton#8 10-403 Sundry 314-566(PTD 214-107) Taylor, I looked at your proposed intervals in the sundry application. This minor change to perf depth for T83 sand is APPROVED. New depth 8036-8074 ft md. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office 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 Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). From: Taylor Nasse [mailto:tnasse(ahilcorp.com] Sent: Tuesday,January 06, 2015 2:48 PM To: Schwartz, Guy L(DOA) Subject: RE: Paxton #8 10-403 Sundry 314-566 (PTD 214-107) Hi Guy- We would like to request a slight modification to the perforation interval depth for the T83 sand on Paxton#8 well. In the sundry it lists the interval as 8,036'—8,056' MD, however we would like to perforate from 8,036'—8,074' MD. Can you provide approval for this change? If possible, we'd like to perform this perforation on Thursday 1/8/15. If you have any questions, please feel free to contact me. Thanks, Taylor W. Nasse, PE Operations Engineer Kenai Asset Team Hilcorp Alaska, LLC (907) 777-8354 office (907) 903-0341 cell From: Schwartz, Guy L(DOA) [mailto:guv.schwartz@alaska.gov] Sent:Thursday, December 04, 2014 9:26 AM To: Taylor Nasse Subject: RE: Paxton #8 10-403 Sundry 314-566 (PTD 214-107) Taylor, 1 A If the same lobe is perforated ( with minor changes to interval perfed) we don't need a new sundry. A courtesy email explaining the difference is sufficient to document the change... also explain why the change was made. That way when I review the 10-404 or 10-407 report I won't have any surprises. NOTE: If a new interval(or lobe) is perforated then a sundry is required !! Don't interpret this as a general approval to change perforation intervals at will... the AOGCC expects Hilcorp to provide Sundries that are correct and have very few modifications to the approved procedure unless there is good reason. In the case of Paxton#8 below the email notification is sufficient and the perf change to the T90 is approved. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office 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 Guy Schwartz at(907-793-1226) or(Guy.schwartz©alaska.gov). From: Taylor Nasse [mailto:tnasse@hilcorp.com] Sent: Monday, December 01, 2014 4:47 PM To: Schwartz, Guy L(DOA) Cc: Chad Helgeson; Paul Chan Subject: Paxton #8 10-403 Sundry 314-566 (PTD 214-107) Hi Guy- I was wondering if you could provide direction on a question I have. On the Paxton#8 10-403 Sundry 314-566 we listed a narrower interval thickness range of the T90 sand than what we would like to perforate-we initially listed 8,172'-8,212' MD however we'd like to perforate 8,178'-8,322' MD. Does this require any sort of notification or additional approval,or does it fall under the original sundry approval?Also, is there a guideline for the type of notification/approval needed if we need to modify the perforation interval depths for future reference? If you have any questions or need additional information, please feel free to contact me. Thanks for your help, Taylor W. Nasse, PE Operations Engineer Kenai Asset Team Hilcorp Alaska, LLC (907)777-8354 office (907)903-0341 cell 2 P7t 2 (411070 Regg, James B (DOA) From: Paul Chan <pchan@hilcorp.com> Sent: Friday, November 07, 2014 9:40 AM To: Regg, James B (DOA); Schwartz, Guy L (DOA) Cc: Chad Helgeson; Luke Saugier;Taylor Nasse Subject: Paxton #7 (PTD 214-130) and Paxton #8 (PTD 214-107) Pressure Testing Requirements Jim/Guy Reference: Paxton #7 (PTD 214-130) and Paxton #8 (PTD 214-107) Hilcorp Alaska is reporting that pressure testing of well control equipment for conductor line operations, as required under 20 AAC 25.287 and the approved sundries, did not occur on the Paxton #8 (October 30) and Paxton#7 (October 31 and November 1) wells. Both wells were cased and cemented. The Paxton#7 well was completed with 2-7/8"tubing/packer with 8.6 ppg kill weight fluid. The Paxton #7 well had not been perforated at the time of logging operations. The Paxton#8 completion hasn't been run and the well is currently not perforated. The Paxton#8 well also had 8.6 ppg kill weight fluid in the casing at the time of logging operations. The cased hole logging suites were being run in preparation for completion activities. Hilcorp Alaska regrets the oversight in not pressure testing the well control equipment as required and will review our procedures and policies to ensure that events like this are not repeated. Sincerely Paul Chan Senior Operations Engineer Kenai Asset Hilcorp Alaska LLC (907) 777—8333 (w) (907)444—2881 (c) (907) 345—3161 (h) 1 II Seth Nolan Hilcorp Alaska, LLC 2 1 1 0 7 GeoTech 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Z 5'-i co Tele: 907 777-8308 Hilrarp:Un.ka.1.1A. Fax: 907 777-8510 E-mail: snolan@hilcorp.com !RECEIVED NOV 1 4 201 DATA LOGGED DATE 11/13/2014 � �� tk/tli2o1y M.K.BENDER To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician II 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 8 CBL and Neutron Correlation Prints: Cement Bond Log Gamma Ray Dual Spaced Neutron CD: Final Well Data A Files Currently on the Disc (2) NEUTRON 11,/5/20141:24 PM File folder RADIAL BOND 11/5/2014 1:24 PM File folder Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By7 2 54tDate: 214107 II Seth Nolan Hilcorp Alaska, LLC GeoTech 3800 Centerpoint Drive, Suite 100 z 5 0 7 5 Anchorage, AK 99503 iiikEI Tele: 907 777-8308 11111.Srp tl:i4 i.WI ,, VE 1'1 Fax: 907 777-8510 /•J� E-mail: snolan@hilcorp.com NOV 1 4 2014 I QQf DATE 11/13/2014 DATA LOGGED MMM .rENDE1 �'BENDER To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician II 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 8 Mudlog Data Prints: End of Well Report 2" MD Formation Evaluation Log 2"TVD Formation Evaluation Log 5" MD Formation Evaluation Log 5" TVD Formation Evaluation Log 2" MD LWD Combo Log 2" TVD LWD Combo Log 2" MD Gas Ratio Log 2"TVD Gas Ratio Log 2" MD Drilling Engineering Log 2"TVD Drilling Engineering Log CD: Final Well Data A Files Currently on the Disc (7) DAILY REPORTS 1118/201412:39 PM File folder DML DATA 11.:8/2014 12:39 Fri File folder FINAL WELL REPORT 11/8/2014 1239 PM File folder . LAS DATA 11/8/2014 12:39 PM File folder . LOG PDFs 11/8/2014 12:39 PM File folder . LOG TIFFS 11/8/2014 12:39 PM File folder . SHOW REPORTS 11.x'8/201412:39 PM File folder Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 ReceivedevaiZiadzek., /5 .eh4.jP Date: Wallace, Chris D (DOA) From: Wallace, Chris D (DOA) Sent: Tuesday, October 28, 2014 2:43 PM To: 'AK, D&C Well Integrity Coordinator'; Regg, James B (DOA) Subject: RE: Operability of Producer 18-07B (PTD#2140170) post witnessed MIT-IA Attachments: image001 jpg Laurie,Jack Permission to reclassify as operable is granted. Thanks and Regards, Chris Wallace Sr. Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 West 7`h Avenue Anchorage,AK 99501 (907)793-1250(phone) (907)276-7542(fax) chris.wallace@alaska.Rov 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 Chris Wallace at 907-793-1250 or chris.wallace@alaska.aov. From: AK, D&C Well Integrity Coordinator [mailto:AKDCWelllntegrityCoordinator@bp.com] Sent: Tuesday, October 28, 2014 11:26 AM To: Regg, James B (DOA); Wallace, Chris D (DOA) Subject: Operability of Producer 18-07B (PTD #2140170) post witnessed MIT-IA Jim and Chris, Producer 18-07B (PTD#2140170) had pressure excursions on May 06, 2014 in which the inner annulus exceeded 45%of burst pressure. Per AOGCC request, a passing MIT-IA to 3,000 psi was witnessed by Bob Noble on October 17, 2014.This pressure test demonstrated the presence of competent downhole barriers as needed prior to changing the status on the well. At this time, BP requests permission to reclassify 18-07B as Operable. A copy of the witnessed test has been included for reference. Please call with any questions, Laurie Climer (.�hc'rnrrte:JackDrshrou/ BP Alaska - Well Integrity Coordinator GvI Global Wells V Organization 1 WIC Office: 907.659.5102 WIC Email: AKDCWellIntegrityCoordinator@BP.com 2 I` — �_ ` !` r/,. .\-.I__,/; \- vcIn 90,7 Paul Chan Senior Operations Engineer Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste. 1400 Anchorage, AK 99503 Re: Ninilchik Field, Susan Dionne Tyonek Undefined Gas Pool, Paxton 8 Sundry Number: 314-566 Dear Mr. Chan: 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 AOGCC grants for good cause shown, a person affected by it may file with the AOGCC 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, Cathy P. "oerst r ,,, Chair DATED this G`I day of October, 2014. Encl. RECEIVED • STATE OF ALASKA 0 C T 2 0 2014 ALASKA OIL AND GAS CONSERVATION COMMISSION D 1.rillq APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon❑ Plug for Redril ❑ Perforate('New Pod❑ Repair WC Change Approved Program❑ Suspend Ill Plug Perforations ❑ 1,Lt, Perforate❑ • PuN Tubin❑ Time Extension❑ Operations Shutdowi❑ Re-enter Susp.Wel ❑ Stimulate❑ Alter Casin[] Other: _Initial Completion_ D 2.Operator Name: Hilcorp Alaska,LLC 4.Current Well Class: 5.Permit to Drill Number Exploratory ❑ Development 0. 214-107 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service El6.API Number. Anchorage,Alaska 99503 50-133-20638-00 • 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? C.O.701 ' Paxton 8 • Will planned perforations require a spacing exception? Yes ❑ No ❑., • 9.Property Designation(Lease Number): 10.Field/Pool(s): 384372 Ninilchik/SD Tyonek Undef Gas 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): 9,310' 8,038' 9,175' 7,904' N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 16" 80' 80' N/A N/A Surface 3525' 9-5/8" 3,548' 2,98T 5,750 psi 3,090 psi Intermediate Production 9,248' 5-1/2" 9,268' 7,996' 10,640 psi 7,480 psi Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD(t)and ND(ft): N/A N/A 12.Attachments: Description Summary of Proposal ❑✓ 13.Well Class after proposed work: Detailed Operations Program n BOP Sketch n Exploratory n Stratigraphi] Development 7 Service n 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 10/24/14 Oil ❑ Gas ❑✓ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is try and correct to the best of my knowledge. Contact Paul Chan Phone: 907-777-8333 Email ychan( hilcormcorn Printed Name -0‹.---Paul C'.,j Title Senior Operations Engineer Signature ,,Phone 907-777-8333 Date I 0( a Of 414COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3\'—l— GIQLQ. P-4--- Plug Integrity ❑ BOP Test [ Mechanical Integrity Test ❑ Location Clearance ❑ Other: x .3 cc& r 3 . 130 P re--_;r ( A1,4SP= l e s - r 5 Spacing Exception Required? Yes ❑ No SubsequentIX Form Required: /0• Z �1�rl. l✓:61:( te-) APPROVED BY 1 Approved by: ,, COMMISSIONER THE COMMISSION Date: /Q Z y/ /C I'/ /H /i.,4 Submit Form and Form 10-403(Revised 10/2012) i Approved application is vplid Rlirltu NnA late of approval. ,/ 0,23 Attachments in Duplicate FIB. _L,, OCT 2, 101 U L i�/� • Well Prognosis Well: Paxton#8 Hilcorp Alaska.LL, Date: 10/16/2014 Well Name: Paxton#8 API Number: 50-133-20638-00 Current Status: Cased and cemented Leg: _Estimated Start Date: October 24, 201.4 Rig: Moncla 401 Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 214-107 First Call Engineer: Paul Chan (907) 777-8333 (0) (907) 345-3161 (H) (907)444-2881 (C) Second Call Engineer: Stan Porhola (907) 777-8412 (0) (907) 331-8228 (C) AFE Number: 1412366C Estimated Bottom Hole Pressure: —3,722 psi at 8,657 TVD (Assumed 0.43 psi/ft gradient) Max. Anticipated Surface Pressure: —2,856 psi (0.10 psi/ft gas gradient) Brief Well Summary Paxton#8 is a grass roots well drilled by the Saxon 147 rig. Objective of Work Run GR/CCL/CBL/Neutron log. Complete the well with 2-7/8' tubing. Perforate the well post-completion.' Slickline Procedure 1. MIRU slickline 2. Drift well with 4.48" GR/JB to PBTD. 3. If necessary, bail/brush as needed to get down to 9175' PBTD. 4. POOH and RDMO. E-Line Procedure 5. MIRU e-line. PT to 250 psi low/3000 psi high. 6, 6. Run GR/CCL/CBL/Neutron log: a. Run Neutron log from 9175' PBTD to^'4200' MD. b. Run GR/CCL from 9175' PBTD to surface. c. Run CBL cement bond log with GR/CCL from 9175' PBTD to 1900' MD (500' above calculated TOC). Depending upon results from the initial CBL run, a pressure pass may also be required. 7. RDMO e-line Completion Procedure: 8. MIRU Moncla#401 W0 Rig. 9. Set BPV. ND dry hole tree and adapter flange. 10. NU BOPE with 2-7/8" pipe rams in the upper ram cavity. Test to 250 psi low/3000 psi high. LD test joint. Install TWC. Test blind rams. Record accumulator pre-charge pressures and chart tests. Well Prognosis Well: Paxton#8 Hilcorp Alaska,Lb Date: 10/16/2014 Notify AOGCC 24 hours prior to testing at http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html 11. PU bit and scraper for 5-1/2" 17#casing on 2-7/8'tubing string. Rabbit the tubing before RIH 12. RIH and reciprocate scraper across packer set depth by short tripping twice from 7500'to 7700' MD. Continue RIH to 9175' PBTD and circulate the hole clean at maximum rate. POOH and stand back tubing 13. Prepare to PU tubing. Run 2-%8" 6.4# L-80 tubing w/packer and 2-%8"tailpipe as detailed below. Rabbit the tubing and jewelry before RIH. RU control line spoolers as needed. Note: The packer and WLEG set depth are dependent upon the results from the Neutron logging run and may be adjusted after consulting with the AOGCC. • 2-7/8'WLEG @ ^'7,600' MD • 1 joint 2-7/8" 6.4#L-80 tubing • 2-7/8" X nipple with RHC-P ball catcher • 1 joint 2-7/8" 6.4#L-80 tubing • 5-34"x 2-%8" Hydraulic set packer w/handling pups set at^'7,510' MD • 2-7/8" 6.4#L-80 tubing • 2-7/8" 6.4#L-80 handling pup • 2-7/8' Baker TRSV @ ^'170' MD • 2-%8" 6.4# L-80 handling pup • 2-%8" 6.4# L-80 handling pup • 2-%8" Chemical injection sub @—157' MD • 2%8" 6.4# L-80 handling pup • 4 joints 2-7/8' 6.4# L-80 tubing • Tubing hanger with handling pup 14. RIH with completion. Record PU and SO weights. 15. MU tubing hanger, control lines, and landing joint. 16. Land tubing hanger and RILDS. LD landing joint. Test tubing hanger packoff. 17. Reverse circulate in 114 bbls of 8.6 ppg KCI brine with 55 gals of corrosion inhibitor. 18. Drop ball/rod. Pressure up on the tubing and set the packer. 19. Test tubing to 3,500 psi for 30 min. Bleed off pressure to 1500 psi. 20. Test the IA to 2,000 psi for 30 min. Bleed off IA. 21. Set TWC. ND BOPE. NU adapter flange and tree. PT tree. RU lubricator and pull TWC. Slickline Procedure 22. MIRU slickline 23. Pull ball/rod. POOH. 24. Retrieve RHC-P. POOH. 25. PU "'2.4"GR and drift tubing. POOH. 14 , - • Well Prognosis Well: Paxton#8 Hilcorp Alaska.1.1. Date: 10/16/2014 26. RDMO. Coiled Tubing Procedure 27. RU CTU, nitrogen, and flow back tanks. Notify AOGCC 24 hours prior to testing at http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html 28. Shell test BOPE/lubricator to 250psi low/4,500psi high (unless due for weekly BOPE test—then a full BOPE test will be done). 29. RIH with CT and blow the well dry with nitrogen. Strap tank before and after blowing the well down. 30. Leave well with SITP of 2,500 psi. POOH. 31. RDMO CTU. E-Line Procedure 32. MIRU e-line and PT lubricator to 250 psi low/3,500 psi high. 33. Perforate the Tyonek sands with 2" 6 SPF 60 deg phased perf guns. Depths are from the Halliburton open LWD log run while drilling the production hole. Make correlation pass and send log in to Dave Buthman and Paul Chan. Record tubing pressures before and after each perforating run. Record condition of gun. Proposed Perforated Intervals Sands Top (MD) Btm (MD) FT Tyonek T-65 ± 7,700' ± 7,720' ±20 Tyonek T-83 ±8,036' ±8,056' ±20 Tyonek T-90 ±8,172' ±8,192' ±20 Tyonek T-90 ±8,192' ±8,212' ±20 Tyonek T-130 ±8,590' ±8,610' ±20 Tyonek T-135 ±8,762' ±8,782' ±20 Tvonek T-135 ±8,814' ±8,824' ±10 34. RD E-line. 35. Turn well over to production. Attachment: Proposed Wellbore Schematic • . Ninilchik Unit • CURRENT SCHEMATIC Well: Paxton #8 PTD: 214-107 API: 50-133-20638-00 Hacorp Alaska,LLC CASING DETAIL Size Type Wt Grade Conn. ID Top Btm �� 16" Conductor 109 X-56 Weld 16" Surf 80' ' 9-5/8" Surf.Csg 40 L-80 BTC 8.835" Surf 3548' 5-1/2" Prod Casing 17 P-110 CDC 4.892" Surf 9,268' TUBING y f CalculatedTOC 9-5/8" 2,403'MD OPEN HOLE/CEMENT DETAIL 9-5/8" 287 BBL's of cement in 12-1/4"Hole. Returns to Surface 5-1/2" 330 BBL's of cement in 8-1/2"Hole. Calculated TOC 2,403' Y r 1 i 8-1/2" ,`."t, Hole '0°' y . , *d o.A. I. it ' i 4 i i,,,,.4:et,y, iv � x 5.5" 1? ta'. .tK`i PBTD=9,175'MD 7,904'TVD TD=9,310'MD/8,038'TVD Updated by PC 10/17/2014 . , Ninilchik Unit trel PROPOSED SCHEMATIC Well: Paxton #8 PTAPI:D:50-1214-107 33-20638-00 Hilrorp Alaska,LLC CASING DETAIL i Size Type Wt Grade Conn. ID Top Btm 16" '.- 16" Conductor 109 X-56 Weld 16" Surf 80' p 4 li,J 9-5/8" Surf.Csg 40 L-80 BTC 8.835" Surf 3,548' li5-1/2" Prod Casing 17 P-110 CDC 4.892" Surf 9,268' elk'4 vey TUBING M•. 4 2-7/8" Production 6.4 L-80 EUE-8rd 2.441" Surf ±7,600' 714, 4 A OPEN HOLE/CEMENT DETAIL CalculatedTOC 9-5/8" 287 BBL's of cement in 12-1/4"Hole. Returns to Surface 9-5/8" it -' 1 +.,, 2,403'MD 5-1/2" 330 BBL's of cement in 8-1/2"Hole. Calculated TOC 2,403' ii 1 ' It JEWELRY DETAIL No. Depth ID OD Item 1 ±157' Chemical Injection Sub .t I 2 ±170' Schlumberger TRSV ;' ,, �t :- 3 ±7,510' Baker SAB-L Perm Packer S. '" ,,."- 4 ±7,600' Wireline re-entry guide w-zi ` q , a. it', ,t..,,1 0. 4 # PROPOSED PERFORATION DETAIL 1 Sands Top(MD) Btm(MD) Top(ND) Btm(TVD) Ft Date Status 8-1/2" ,1;11444. . ;is; T65 ±7,700' ±7,720' ±6,451' ±6,471' ±20 , Pending Proposed Hole '14.4"," 3 yP`14 T83 ±8,036' ±8,056' ±6,782' ±6,801' ±20 Pending - Proposed t'+ ,.. / T90 ±8,172' ±8,192' ±6,915' ±6,935' ±20 Pending Proposed 4 , ✓ ±8,192' ±8,212' ±6,935' ±6,954' ±20 Pending Proposed +'g41 pleifi T130 ±8,590' ±8,610' ±7,326' ±7,345' ±20 Pending _ Proposed 1 Ti35 - ±8,762' ±8,782' ±7,495' ±7,515' ±20 Pending Proposed y . Ir t. , ±8,814' ±8,824' ±7,547' ±7,557' ±10 Pending Proposed rl i ' 1 A• 4 � 41 c i OJi1,14 'erwr ..,, ....0 ,.. ,. ,ott0 . ....„ m ele kb_ �f 5.5" 1_ PBTD=9,175'MD/7,904'TVD TD=9,310'MD/8,038'TVD Updated by PC 10/17/2014 •,.� am. -.-.- R a � V , - s, _ - . .- , 4 141 r ' Section „ .....,�, 12 �•` ,%, 157 ♦_ ? — ., Approximate location 0,4'4',...,'..' at „ of planned perforations g i ,. � 1• - • t c, t *+' , 1.54 rl� .. �t • •,, e. if a llti 1 _ ,,. 7 �► ' - 53 155 - t •■ x t• , ., a ,,i i. is . T_ . /6.` a wte /4: 'r r , ..1. t / , , lila io :: ,, _ ,,,, I... Legend .. . Oil and Gas Unit Boundary4 , it : !'* w'; `..... Unleased Unit Tracts '” ..t ..-;* Unit Tracts ALL Expansion Area Unleased IIIExpansion Area Leased , .1. , ' PA Boundary ; , i Modified by AOGCC Oct. 23, 2014 II 0 2,400 4,800 Ninilchik Unit Feet Pax-8NI Alaska State Plane Zone 4,NAD27 Hikorp Alaska,LLC Map Date:9/22/2014 /� 4' 11 Debra Oudean Hilcorp Alaska, LLC /S-0 Z GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: doudean@hilcorp.com DATE 10/13/2014 To: Alaska Oil & Gas Conservation Commission Meredith Guhl Petroleum Geology Assistant 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Transmitted herewith are cuttings from PAXTON 8 WELL BOX SAMPLE INTERVAL PAXTON 8 BOX 1 OF 5 3540' - 4800' PAXTON 8 BOX 2 OF 5 4800' - 6210' PAXTON 8 BOX 3 OF 5 6210' - 7605' PAXTON 8 BOX 4 OF 5 7605' - 8565' PAXTON 8 BOX 5 OF 5 8565' - 9310' Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received Date: RECEIVED OCT 14 2014 AOGCC '4-\07 Debra Oudean Hilcorp Alaska, LLC Z"1y` 41 GeoTech II 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Tele: 907 777-8337 IGI•arp tlarka.u.(, Fax: 907 777-8510 E-mail: doudean@hilcorp.com DATA LOGGED k0/k /201 DATE 10/13/2014 M.K.BENDER To: Alaska Oil & Gas Conservation Commission RECEIVEL Bender REC IVE Natural Resource Technician 333 W 7th Ave Ste 100 OCT 13 2014 Anchorage, AK 99501 AOGCC DATA TRANSMITTAL Paxton 8 E log data Prints: DGR EWR-Phase 4 ALD CTN TVD ROP DGR EWR-Phase 4 ALD CTN MD CD: Final Well Data COM 10/13/2014 9:10 A... File folder DUS+LAS 10/13/2014 9:10 A... File folder EMI 10/13/2014 9:09 A... File folder PDF 9/24/2014 3:53 PM File folder TIFF 10/13/2014 9:09 A... File folder Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: � 6_44teeet Date: OF %%i tv THE ST'AT'E h �� . d as of i 333 Aesr Seventh Hvcnue C Anchorage AlasKa 99501-3572 ---_ , GON'1-.R;�'OR t 1\ PArt\I:L1. 9 `� Iviain 907 279 1433 e3R, � � p 'gr, 9C,7 276 7',.=2 LukeKeller Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, SD Tyonek Undefined Gas Pool, Paxton#8 Hilcorp Alaska, LLC Permit No: 214-107 (revised) Surface Location: 2997' FEL, 843' FNL, Sec. 13, T1S, R14W, SM, AK Bottomhole Location: 1812' FNL, 1835' FEL, Sec. 12, T1S, R14W, SM, AK Dear Mr. Keller: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval 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 AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC 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 AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, i93k,to Cathy P. oerster Chair DATED this • day of September,2014. RECEIVED • STATE OF ALASKA cZEN1 S.SE0 AL. OIL AND GAS CONSERVATION COMM]: V AUG 12 2014 PERMIT TO DRILL � 20 AAC 25.005 '1".f r t 4 `' la.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone 0 • lc.Specify if well is proposed for: • Drill 0 -Lateral ❑ Stratigraphic Test ❑ Development-Gas 0 • Service-Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Redrill❑ Reentry ❑ Exploratory ❑ Service- WAG ❑ Service-Disp ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11.Well Name and Number: Hilcorp Alaska,LLC Bond No. 022035244 Paxton#8 • 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 3800 Centerpoint Drive Suite 1400,Anchorage,AK 99503 MD: 9,980' • TVD: 8,674' . Ninilchik 4a. Location of Well(Governmental Section): / 7.Property Designation(Lease Number): Ninilchik,SD Tyonek Undef Gas • A"--- Surface: 2997'FEL,843'FNL,Sec 13,T1S,R14W,SM,AK ./ yzy'17 i✓,L.ADL 384372 10 i a,ADL Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 906'FSL,2564'FWL,Sec 12,T1S,R14W,SM,AK Surface agreement w/parcel fee owner 8/15/2014 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 1812'FNL,1835'FEL,Sec 12,T1S,R14W,SM,AK 3507.84(ADL 384372) 360'from TPI to Unit Tract 162 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: . 166.69 feet 15.Distance to Nearest Well Open Surface: x-206328 • y-2230520 • Zone-4 GL Elevation above MSL: • 148.3 feet to Same Pool: 1757' 16.Deviated wells: Kickoff depth: 400 feet - 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) yQr�s' Maximum Hole Angle: 40 degrees • Downhole: 3722psi Surface: 24 SI Z ,._7 /�'•!Z' f' 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) Cond 16" 109 X-56 Weld 80' Surf. Surf. 80' 80' Driven 12-1/4" 9-5/8" 40 L-80 BTC 3,600' Surf. Surf. 3,600'. 3,013' 313.4bb1/1761ft3 8-1/2" 5-1/2" 17 P-110 DQX 9,980' Surf. Surf. 9,980'. 8,657' 341.4bb1/1916.5ft3 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk(measured): 1 Casing Length Size Cement Volume MD TVD Conductor/Structural Surface 1 Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat 0 BOP Sketch 0 Drilling Program 0 Time v. Depth Plot 0 Shallow Hazard Analysis Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Luke Keller Email Ikeller• hilcorp.com Printed Name Luke -11• Title Drilling Engineer / if Signature , Phone (907)777-8395 Date 8/11/2014 Commission Use Only Permit to Drill , API Number: • Permit Approval See cover letter for other Number: 214-107y.E'JL E . 50- 133-20638-00-00 Date: 1-3o-1 o '-( requirements. Conditions of approval: If box is checkee� T td,well may not be used to explore for,test,or produce coalbed methane -gas hydrates,or gas contained in shales: a'Other: G u /� /SVP _S f Samples req'd: Yes❑ No Mud log req'd:Yes❑ No p' / H2S measures: Yes❑ No IZI Directional svy req'd:Yes Z No❑ �,�, 1 J C� p/ /. Spacing exception req'd: Yes[ No❑ Inclination-only svy req'd:Yes❑ No a r'L tel.r.rj) - APPROVED BY q Approved by:d.."--4.4...)P COMMISSIONER THE COMMISSION Date: ! /. iii GINA of , ,2 AAC Submit Form and Form 10-401(Revised 10/2012) This r t t v I the d of approval(20 AA25.005(g)) Attachments in Duplicate 9•fZcs ' 11 Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8395 Hilcorp Aloka,LLC Email Ikeller@hilcorp.com RECEIVED August 11th, 2014 AUG 1 2 2014 Commissioner AOGCC Alaska Oil &Gas Conservation Commission 333 W. 7th Avenue Anchorage, Alaska 99501 Re: Paxton#8 (PTD#: 214-107) Permit to Drill Application (Change to Surface Location) Dear Commissioner, J Enclosed for review and approval is a revision to the surface location for Paxton #8 Development Gas well. The surface location had to be adjusted slightly on the Paxton pad to allow the rig to fit and not require a shut in and temp P&A of the Paxton#5 well (which was the original plan). The following documents are enclosed with this revision to the approved PTD: 1. Revised 10-401 (Differences from approved PTD are highlighted for easy reference). 2. Revised directional plan. 3. "As Built" Surface plat. All other items remain the same as on original submission. Please contact myself at 777-8395 or Ikeller(a�hilcorp.com if additional information is required. Sincerely, Luke Keller Drilling Engineer Hilcorp Alaska, LLC Page 1 of 1 SECTION LINE NTS N 2231286 547 12 7 E 209345.73. 13"18 \\\\ PAXTON J SPENCER ESTATE GOVT.LOT 1 SEC.13 T 01 S,R 14 W S.M.AK / y ). HOMEDISTRICTDING F° N O R TH 64634 RED BLUFF DRIVE Qo o E SCALE 0 100 200 s' LEvL aLDERsa I I II / V BRUSH FEET I �� '°�• PR ER P</. 444 *0. 49 7Ji i� ..*�I ✓, oil, /� i , 1%M. SCOTT McLANE;' 6 i 0111/ 08/06/2014 ®5 Nare:m/74 00 lo2 ,� ESSICN���' :5, cn Or' 1I1%1 XNAN%�` L / �Ne Oca Fx l W=i LIMITS OF SEAS NAL / re 9N ME% /! 0_' W p' DRAT, EC NEL /o caMErsoa /. / W W v y /// 4 ,._ �� i O.„00 ; / mac' 0P - z 2{ //'' /— PIPE 9 Jp / PAXTON#4W SUPPORT / ® (TVP) s, 64F/ / M O_4„,/,/36-X60'0"W/ / a' •AXTON PAD / r !4Yqd` ENDS' ONS >� •Cl / CO PAXTON#9 WELL _II I / . // I�jI_ PAXTON#2 WELL / �/`0: PAXTON#1 WEL c Z /�yy , ,,y p)/,1 0 , / j ' / PCT'' e ���,� '® ® PAXTON#5 WELL a Ai ' ! '••+- 061. /.4rI I N ./: . / / • ./,',.77 J / / ' % PAXTON NO. 8 / / 4 ji i,; r/ WEL .. 3l. / / / AS-BUILT / /7PAXTON#7 WELL /� / j/yt1 (7: / / (11 ; e. WATER / / t I 4/ g /I/ I iI/' PAXTON#8 WELL Ouse / 1 I ,Il j 'S-BUILT ip/ / j I t( 1gjf1 NAD27 ASP ZONE 4 ;` / / / I I I II I� 1 f i_I11, 1 N: 223052a261' /®7 'e. -/ 1 1 );���`hYYY{I 1 E: 206328.935' /: // 1.BASIS OF ELEVATIONS IS NGS MONUMENT S 82 PID TT0583 AT MILE POST 1 \`L'`,.,\(\ (\I LAT:60°05'44.943"N 4"• %/ i.,......_, 124.2 OF THE STERLING HIGHWAY. THE ELEVATION OF S82 IS 237.12 FEET \� �_ LON:151°36'32.403"W / /' (NGVD 29). BASIS OF HORIZONTAL COORDINATES ARE ALASKA STATE PLANE �R,/ / NAD 83 ZONE 4 EPOCH 2003 DETERMINED BY AN NGS OPUS SOLUTION FROM \ 1 ELEV=148.45'NGVD29 r .,1,Y/f CORS BASE STATIONS"TLKA PID AH2494","ZAN1 PID DE9153"AND"GNAA PID 1 .. / SECTION 13 T1 S,R14W,AK /F',/ i AH2492" OBSERVED JUNE 5,2007 ON MCI S82 ECC 2"ALUM.CAP SET MAIN 2997'FEL,843'FNL >+I'II/ ADJACENT TO BM S82 N:2252517.780 E:1368533.525 ELEV:240.08 FEET. �� 2)NORTHEAST CORNER SEC.13 COORDINATES DETERMINED FROM DIRECT • ,,\ X. ///fl SURVEY TIE TO THE TO EXISTING BLM SECTION CORNER RECOVERED. b ttis•< /.,: PROTRACTED SECTION CORNER VALUES NOT USED. \ " �� / 5 3)CORPSCON VERSION 6.0.1 USED TO CONVERT NAD83 TO NAD27. PAXTON #8 WELL AS-BUILT SURFACE LOCATION NOTES (NAD27) LOCATION: SECTION 13, TOWNSHIP 1 SOUTH,/ /b. ENGINEERING-TESTING RANGE 14 WEST, SEWARD MERIDIAN ALASKA SURVEYING-MAPPING P.O.BOX 468 Ltileori► Alaska. LL.[: MCC, SOLDOTNA,AK.99669 JOB NO. 143093 REV.0 VOICE:(907)283-4218 1 FAX:(907)283-3265 DWG. j Consulting Inc WWW.MCLANECG.COM 143093 AS-BUILT Date: August 08, 2014 FIGURE: 1 Hilcorp Energy Company Ninilchik Unit Paxton Paxton #8 Paxton #8 Plan: Paxton #8 WP5.0 Standard Proposal Report 11 August, 2014 HALLIBURTON Sperry Drilling Services HilcorpEm pany Project: Ninilchik Unit HALLIBURTON Calculation Method: Min,,,,�m Curvature Site: Paxton Error System: ISCWSA -1200- Scan Method: Closest Approach 3D Well: Paxton#8 Sperry Drilling - Error Surface: Elliptical Conic Wellbore: Paxton#8 - Warning Method: Error Ratio Paxton#8 WP5.0 -600- flHileorp _ A0- - Start Dir 4°/100':400'MD,400'TVD - ____-- CASING DETAILS - Q° - TVD TVDSS MD Size Name 600- 10° 3028.43 2861.48 3600.00 9-5/8 9 5/8"x 12 1/4" 8674.83 8507.88 9980.80 5-1/2 51/2"x81/2" 2100 - 30 : 1200- End Dir :1377.34'MD,1303.25'TVD WELL DETAILS: Paxton#8 -- - Ground Level: 148.45 I - 0 +N/-S +E/-W Northing Easting Latittude Longitude Slot tip0 0.00 0.00 2230520.26 206328.93 60.09581738 -151.60900084 1800- _ - - _ - - - SURVEY PROGRAM - Beluga 50 Date:2014-08-11T00:00:00 Validated:Yes Version: 2400-_ ° 0 0 Depth From Depth To Survey/Plan Tool 18.95 3600.00 Paxton#8 WP5.0(Paxton#8) MWD+SC+sag 3600.00 9980.81 Paxton#8 WP5.0(Paxton#8) MWD+SC+sag 9 5/8"x 12 1/4" 3000 • - 00 - Beluga 135 CP Start Dir 2°/100':4463.95'MD,3698.83'TVD FORMATION TOP DETAILS 3600 _ _ _ _ _ _ __ TVDPath TVDssPath MDPath Formation -o - - - End Dir :4896.7'MD,4034.74'TVD 2068.50 1901.55 2363.26 Beluga 50 S - Top Tyonek "" 3527.50 3360.55 4242.99 Beluga 135 c, - Paxton#8 Srfc Tgt1 "_" 3665.50 3498.55 4420.78 Top Tyonek - 000 4739.50 4572.55 5807.74 T-12 C) 4200- 6550.50 6383.55 7781.53 T-65 N - 3g 7007.50 6840.55 8254.66 T-90 - 7620.50 7453.55 8889.28 T-140 .c - O• 4800 - - - - - - - - - �_ _0.2 - T-12 Start Dir 3°/100':5954.01'MD,4852.44'TVD •0 f > 5400- 20° U) - •End Dir :6765.41'MD,5568.88'TVD F- - Paxton#8 Int Tgt2 0 TO0 6000- - 6600-`-- - - - - - - - - - - - - - - - - - - - - - - T-65 5000 7200-- T-90 9000 7800-- T-140 Paxton#8 BHL Tgt3 8400- Total Depth:9980.81'MD,8674.72'TVD 051/2 X 8.1/2'=-- - r 9000- r - Paxton#8 WP5.0 9600- REFERENCE INFORMATION - - Co-ordinate(N/E)Reference: Well Paxton#8,True North - Vertical(TVD)Reference: As-Built @ 166.95usft - Measured Depth Reference: As-Built @ 166.95usft 10200- Calculation Method: Minimum Curvature -600 0 600 1200 • 1800 2400 3000 3600 4200 4800 5400 6000 6600 7200 7800 Vertical Section at 15.73°(1200 usft/in) CASING DETAILS 'HALLIBURTON 1 111u1 corp TVD TVDSS MD Size Name 3028.43 2861.48 3600.00 9-5/8 9 5/8"x 12 1/4" perry Drilling 8507.88 9980.80 5-1/2 51/2"x81/2" SProject:Ninilchik Unit Site: Paxton _ Well: Paxton#8 4875- Wellbore: Paxton#8 Paxton#8 WP5.0 4550- Paxton#8 WP5.0 • 5 1/2"x 8 1/2" 4225- - p - 867 Paxton#8 BHL Tgt3 83S 00 '000 3900- 7500 7000 3 63.00 3575- - Paxton#8 Int Tgt2______--- 6000 S500 3250- 5000 2925- _ 4500 2600- dg - Paxton#8 Srfc Tgtl_ 4v00 2275- ----_ • _ 3500 COMPANY DETAILS: Hilcorp Energy Company 1950- Calculation Method: Minimum Curvature Error System: ISCWSA 9 5/8"x 12 1/4" Scan Method: Closest Approach 3D o - Error Surface: Elliptical Conic 1625- 7'3000 Warning Method: Error Ratio REFERENCE INFORMATION 1300_ 2500 Co-ordinate(N/E)Reference: Well Paxton#8,True North Vertical(TVD)Reference: As-Built @ 166.95usft Measured Depth Reference: As-Built�166.95usft Calculation Method: Minimum-Curvature 975- 2000 WELL DETAILS: Paxton#8 Ground Level: 148.45 650- +N/-S +E/-W Northing Easting Latittude Longitude Slot 0.00 0.00 2230520.26 206328.93 60.09581738 -151.60900084 1500 SURVEY PROGRAM 325- - Date:2014-08-11700:00:00 Validated:Yes Version: k.;1000 Depth From Depth To Survey/Plan Tool 0- 18.95 3600.00 Paxton#8 WP5.0(Paxton#8) MWD+SC+sag _ 00 3600.00 9980.81 Paxton#8 WP5.0(Paxton#8) MWD+SC+sag -325- SECTION DETAILS Sec MD Inc Azi TVD TVDSS +N/-S +EI-W Northing Easting DLeg TFace VSec Target 1 18.95 0.00 0.00 18.95 -148.00 0.00 0.00 2230520.26 206328.93 0.00 0.00 0.00 _ 2 400.00 0.00 0.00 400.00 233.05 0.00 0.00 2230520.26 206328.93 0.00 0.00 0.00 650- 3 1377.20 39.09 9.45 1303.15 1136.20 316.25 52.65 2230835.14 206389.26 4.00 9.45 318.68 4 4464.30 39.09 9.45 3699.28 3532.33 2236.29 372.28 2232746.82 206755.54 0.00 0.00 2253.44 Paxton#8 Srfc Tgt1 _ 5 4897.03 39.34 23.15 4035.18 3868.23 2497.47 448.76 2233006.06 206838.36 2.00 93.64 2525.58 6 5954.33 39.34 23.15 4852.87 4685.92 3113.77 712.32 2233615.76 207116.84 0.00 0.00 3190.25 - 7 6765.76 15.00 23.39 5569.33 5402.38 3451.73 857.33 2233950.09 207270.03 3.00 179.85 3554.88 Paxton#8 Int Tgt2 8 9216.19 15.00 23.39 7936.27 7769.32 4033.83 1109.10 2234525.89 207535.91 0.00 0.00 4183.44 Paxton#8 BHL Tgt3 -975- q 0051 15 15 nn 23 3q 8675_17 8.505 77 471s c 1187 70 271471164 207819 47 n on non 4770 R7 -650 -325 0 325 650 975 1300 1625 1950 2275 2600 2925 3250 3575 3900 West(-)/East(+)(650 usft/in) 1 HALLIBURTON 1111 Project: Ninilchik Unit Site: Paxton Hi1Corn Well: Paxton#8 Wellbore: Paxton#8 Sperry Drilling Paxton#8 WP5.0 Paxton#7 wp5.0 _____ 4250— 5 1/2"x 8 1/2" Paxton#4 Surveys Paxton#8 WP5.0 4000= Paxton#8 BI-IL Tgt3 Paxton#3 Surveys 3750— Paxton#8 Int Tgt2 3500- 3250— _ 3000- - 2750 500-3250- 3000- 2750— 2500— Paxton#8 Srfc Tgtl 0 2250— + 0 g 2000— .E 0 1750— 9 5/8"x 12 1/4" 7P Paxton#2 Surveys 1500- - extbn#1 1250 woo— 750- 500— 250— Paxton#5 WPI.0 A4. 0_ Paxton#6 Wpl.a -500 -250 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000 West(-)/East(+)(500 usft/in) Halliburton -IALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 - Company: Hilcorp Energy Company TVD Reference: As-Built @ 166.95usft • Project: Ninilchik Unit MD Reference: As-Built @ 166.95usft Site: Paxton North Reference: True - Well: Paxton#8 Survey Calculation Method: Minimum Curvature - Wellbore: Paxton#8 Design: Paxton#8 WP5.0 Project Ninilchik Unit l' Map System: US State Plane 1927(Exact solution) • System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) . Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Site Paxton Site Position: Northing: 2,230,587.12 usft Latitude: 60.09599940 From: Map Easting: 206,316.53usft Longitude: -151.60907766 Position Uncertainty: 0.00 usft Slot Radius: 13-3/16" Grid Convergence: -1.39 ° Well Paxton#8 Well Position +N/-S 0.00 usft Northing: 2,230,520.26 usft - Latitude: 60.09581738 +E/-W 0.00 usft Easting: 206,328.93 usft - Longitude: -151.60900084 1-- Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: - 148.45 usft Wellbore Paxton#8 Magnetics Model Name Sample Date Declination Dip Angle Field Strength e) (') (nT) BGGM2013 7/8/2014 16.63 73.10 55,204 Design Paxton#8 WP5.0 Audit Notes: Version: Phase: PLAN Tie On Depth: 18.95 Vertical Section: Depth From(TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (°) 18.50 0.00 0.00 15.73 Plan Sections Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +N1-S +EI-W Rate Rate Rate Tool Face (usft) (") (") (usft) usft (usft) (usft) (°/100usft) (°l100usft) (1100usft) (^) 18.95 0.00 0.00 18.95 -148.00 0.00 0.00 0.00 0.00 0.00 0.00 400.00 0.00 0.00 400.00 233.05 0.00 0.00 0.00 0.00 0.00 0.00 1,377.20 39.09 9.45 1,303.15 1,136.20 316.25 52.65 4.00 4.00 0.97 9.45 4,464.30 39.09 9.45 3,699.28 3,532.33 2,236.29 372.28 0.00 0.00 0.00 0.00 4,897.03 39.34 23.15 4,035.18 3,868.23 2,497.47 448.76 2.00 0.06 3.17 93.64 5,954.33 39.34 23.15 4,852.87 4,685.92 3,113.77 712.32 0.00 0.00 0.00 0.00 6,765.76 15.00 23.39 5,569.33 5,402.38 3,451.73 857.33 3.00 -3.00 0.03 179.85 9,216.19 15.00 23.39 7,936.27 7,769.32 4,033.83 1,109.10 0.00 0.00 0.00 0.00 9,981.16 15.00 23.39 8,675.17 8,508.22 4,215.55 1,187.70 0.00 0.00 0.00 0.00 8/1112014 2:29:31PM Page 2 COMPASS 5000.1 Build 70 . Halliburton -I,rALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 Company: Hilcorp Energy Company TVD Reference: As-Built @ 166.95usft Project: Ninilchik Unit MD Reference: As-Built @ 166.95usft Site: Paxton North Reference: True Well: Paxton#8 Survey Calculation Method: Minimum Curvature Wellbore: Paxton#8 Design: Paxton#8 WP5.0 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) -148.00 18.95 0.00 0.00 18.95 -148.00 0.00 0.00 2,230,520.26 206,328.93 0.00 0.00 100.00 0.00 0.00 100.00 -66.95 0.00 0.00 2,230,520.26 206,328.93 0.00 0.00 200.00 0.00 0.00 200.00 33.05 0.00 0.00 2,230,520.26 206,328.93 0.00 0.00 300.00 0.00 0.00 300.00 133.05 0.00 0.00 2,230,520.26 206,328.93 0.00 0.00 400.00 0.00 0.00 400.00 233.05 0.00 0.00 2,230,520.26 206,328.93 0.00 0.00 Start Dir 4°1100':400'MD,400'TVD• 500.00 4.00 9.45 499.92 332.97 3.44 0.57 2,230,523.69 206,329.59 4.00 3.47 600.00 8.00 9.45 599.35 432.40 13.75 2.29 2,230,533.95 206,331.56 4.00 13.86 700.00 12.00 9.45 697.81 530.86 30.88 5.14 2,230,551.00 206,334.83 4.00 31.11 _ 800.00 16.00 9.45 794.82 627.87 54.74 9.11 2,230,574.76 206,339.38 4.00 55.16 900.00 20.00 9.45 889.91 722.96 85.21 14.19 2,230,605.10 206,345.19 4.00 85.87 1,000.00 24.00 9.45 982.61 815.66 122.16 20.34 2,230,641.89 206,352.24 4.00 123.09 1,100.00 28.00 9.45 1,072.47 905.52 165.39 27.53 2,230,684.93 206,360.49 4.00 166.66 1,200.00 32.00 9.45 1,159.05 992.10 214.70 35.74 2,230,734.03 206,369.89 4.00 216.35 1,300.00 36.00 9.45 1,241.94 1,074.99 269.85 44.92 2,230,788.94 206,380.41 4.00 271.92 1,377.20 39.09 9.45 1,303.15 1,136.20 316.25 52.65 2,230,835.14 206,389.26 4.00 318.68 1,377.34 39.09 9.45 1,303.25 1,136.30 316.34 52.66 2,230,835.22 206,389.28 0.00 318.76 End Dir :1377.34'MD,1303.25'TVD 1,400.00 39.09 9.45 1,320.84 1,153.89 330.43 55.01 2,230,849.25 206,391.97 0.00 332.97 1,500.00 39.09 9.45 1,398.46 1,231.51 392.63 65.36 2,230,911.18 206,403.83 0.00 395.64 1,600.00 39.09 9.45 1,476.08 1,309.13 454.82 75.71 2,230,973.10 206,415.70 0.00 458.31 1,700.00 39.09 9.45 1,553.69 1,386.74 517.02 86.07 2,231,035.03 206,427.56 0.00 520.98 1,800.00 39.09 9.45 1,631.31 1,464.36 579.21 96.42 2,231,096.95 206,439.43 0.00 583.66 1,900.00 39.09 9.45 1,708.93 1,541.98 641.41 106.78 2,231,158.88 206,451.29 0.00 646.33 2,000.00 39.09 9.45 1,786.55 1,619.60 703.60 117.13 2,231,220.80 206,463.16 0.00 709.00 2,100.00 39.09 9.45 1,864.17 1,697.22 765.80 127.48 2,231,282.73 206,475.02 0.00 771.67 2,200.00 39.09 9.45 1,941.78 1,774.83 828.00 137.84 2,231,344.65 206,486.89 0.00 834.35 2,300.00 39.09 9.45 2,019.40 1,852.45 890.19 148.19 2,231,406.58 206,498.75 0.00 897.02 2,363.26 39.09 9.45 2,068.50 1,901.55 929.53 154.74 2,231,445.75 206,506.26 0.00 936.67 Beluga 50 2,400.00 39.09 9.45 2,097.02 1,930.07 952.39 158.55 2,231,468.50 206,510.62 0.00 959.69 2,500.00 39.09 9.45 2,174.64 2,007.69 1,014.58 168.90 2,231,530.43 206,522.48 0.00 1,022.37 2,600.00 39.09 9.45 2,252.25 2,085.30 1,076.78 179.25 2,231,592.35 206,534.35 0.00 1,085.04 2,700.00 39.09 9.45 2,329.87 2,162.92 1,138.97 189.61 2,231,654.28 206,546.21 0.00 1,147.71 2,800.00 39.09 9.45 2,407.49 2,240.54 1,201.17 199.96 2,231,716.20 206,558.08 0.00 1,210.38 2,900.00 39.09 9.45 2,485.11 2,318.16 1,263.37 210.31 2,231,778.13 206,569.94 0.00 1,273.06 3,000.00 39.09 9.45 2,562.73 2,395.78 1,325.56 220.67 2,231,840.06 206,581.81 0.00 1,335.73 3,100.00 39.09 9.45 2,640.34 2,473.39 1,387.76 231.02 2,231,901.98 206,593.67 0.00 1,398.40 3,200.00 39.09 9.45 2,717.96 2,551.01 1,449.95 241.38 2,231,963.91 206,605.54 0.00 1,461.08 3,300.00 39.09 9.45 2,795.58 2,628.63 1,512.15 251.73 2,232,025.83 206,617.40 0.00 1,523.75 3,400.00 39.09 9.45 2,873.20 2,706.25 1,574.34 262.08 2,232,087.76 206,629.27 0.00 1,586.42 3,500.00 39.09 9.45 2,950.81 2,783.86 1,636.54 272.44 2,232,149.68 206,641.13 0.00 1,649.09 1 3,600.00 • 39.09 9.45 3,028.43 2,861.48 1,698.73 282.79 2,232,211.60 206,652.99 0.00 1,711.77 9 5/8"x 12 1/4" 3,700.00 39.09 9.45 3,106.05 2,939.10 1,760.93 293.15 2,232,273.53 206,664.86 0.00 1,774.44 8/11/2014 2:29:31PM Page 3 COMPASS 5000.1 Build 70 Halliburton 1-1ALLIBU RTD J Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 Company: Hilcorp Energy Company TVD Reference: As-Built @ 166.95usft Project: Ninilchik Unit MD Reference: As-Built @ 166.95usft Site: Paxton North Reference: True Well: Paxton#8 Survey Calculation Method: Minimum Curvature Wellbore: Paxton#8 Design: Paxton#8 WP5.0 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N!-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 3,016.72 3,800.00 39.09 9.45 3,183.67 3,016.72 1,823.13 303.50 2,232,335.46 206,676.72 0.00 1,837.11 3,900.00 39.09 9.45 3,261.29 3,094.34 1,885.32 313.85 2,232,397.38 206,688.59 0.00 1,899.79 4,000.00 39.09 9.45 3,338.90 3,171.95 1,947.52 324.21 2,232,459.31 206,700.45 0.00 1,962.46 4,100.00 39.09 9.45 3,416.52 3,249.57 2,009.71 334.56 2,232,521.23 206,712.32 0.00 2,025.13 4,200.00 39.09 9.45 3,494.14 3,327.19 2,071.91 344.91 2,232,583.16 206,724.18 0.00 2,087.80 4,242.99 39.09 9.45 3,527.50 3,360.55 2,098.64 349.36 2,232,609.77 206,729.28 0.00 2,114.74 Beluga 135 4,300.00 39.09 9.45 3,571.76 3,404.81 2,134.11 355.27 2,232,645.08 206,736.05 0.00 2,150.48 4,400.00 39.09 9.45 3,649.37 3,482.42 2,196.30 365.62 2,232,707.01 206,747.91 0.00 2,213.15 4,420.78 39.09 9.45 3,665.50 3,498.55 2,209.22 367.77 2,232,719.87 206,750.38 0.00 2,226.17 Top Tyonek 4,463.95 39.09 9.45 3,699.01 3,532.06 2,236.07 372.24 2,232,746.60 206,755.50 0.00 2,253.23 Start Dir 2°1100':4463.95'MD,3698.83'TVD 4,464.30 39.09 9.45 3,699.28 3,532.33 2,236.29 372.28 2,232,746.82 206,755.54 0.00 2,253.44 4,500.00 39.05 10.58 3,727.00 3,560.05 2,258.45 376.19 2,232,768.88 206,759.99 2.00 2,275.84 4,600.00 38.99 13.76 3,804.70 3,637.75 2,319.98 389.46 2,232,830.07 206,774.76 2.00 2,338.66 4,700.00 39.03 16.94 3,882.41 3,715.46 2,380.66 406.12 2,232,890.33 206,792.88 2.00 2,401.59 4,800.00 39.15 20.10 3,960.04 3,793.09 2,440.43 426.14 2,232,949.59 206,814.36 2.00 2,464.54 4,896.70 39.34 23.14 4,034.93 3,867.98 2,497.28 448.68 2,233,005.88 206,838.27 2.00 2,525.38 End Dir :4896.7'MD,4034.74'TVD 4,897.03 39.34 23.15 4,035.18 3,868.23 2,497.47 448.76 2,233,006.06 206,838.36 2.00 2,525.58 4,900.00 39.34 23.15 4,037.49 3,870.54 2,499.21 449.50 2,233,007.78 206,839.14 0.00 2,527.45 5,000.00 39.34 23.15 4,114.82 3,947.87 2,557.50 474.43 2,233,065.45 206,865.48 0.00 2,590.32 5,100.01 39.34 23.15 4,192.16 4,025.21 2,615.79 499.36 2,233,123.11 206,891.82 0.00 2,653.18 5,200.01 39.34 23.15 4,269.50 4,102.55 2,674.07 524.29 2,233,180.78 206,918.16 0.00 2,716.05 5,300.01 39.34 23.15 4,346.83 4,179.88 2,732.36 549.21 2,233,238.44 206,944.50 0.00 2,778.91 5,400.01 39.34 23.15 4,424.17 4,257.22 2,790.65 574.14 2,233,296.11 206,970.84 0.00 2,841.78 5,500.01 39.34 23.15 4,501.51 4,334.56 2,848.94 599.07 2,233,353.77 206,997.18 0.00 2,904.64 5,600.01 39.34 23.15 4,578.85 4,411.90 2,907.23 624.00 2,233,411.44 207,023.52 0.00 2,967.51 5,700.01 39.34 23.15 4,656.18 4,489.23 2,965.52 648.92 2,233,469.10 207,049.85 0.00 3,030.37 5,800.01 39.34 23.15 4,733.52 4,566.57 3,023.81 673.85 2,233,526.76 207,076.19 0.00 3,093.24 5,807.74 39.34 23.15 4,739.50 4,572.55 3,028.32 675.78 2,233,531.22 207,078.23 0.00 3,098.10 T-12 5,900.01 39.34 23.15 4,810.86 4,643.91 3,082.10 698.78 2,233,584.43 207,102.53 0.00 3,156.10 5,954.01 39.34 23.15 4,852.62 4,685.67 3,113.58 712.24 2,233,615.57 207,116.76 0.00 3,190.05 Start Dir 3°1100':5954.01'MD,4852.44'TVD 5,954.33 39.34 23.15 4,852.87 4,685.92 3,113.77 712.32 2,233,615.76 207,116.84 0.00 3,190.25 6,000.01 37.97 23.16 4,888.54 4,721.59 3,140.00 723.54 2,233,641.71 207,128.70 3.00 3,218.54 6,100.01 34.97 23.17 4,968.94 4,801.99 3,194.64 746.92 2,233,695.77 207,153.40 3.00 3,277.48 6,200.01 31.97 23.19 5,052.35 4,885.40 3,245.33 768.63 2,233,745.92 207,176.34 3.00 3,332.16 6,300.01 28.97 23.21 5,138.52 4,971.57 3,291.94 788.61 2,233,792.02 207,197.44 3.00 3,382.44 6,400.01 25.97 23.23 5,227.24 5,060.29 3,334.33 806.79 2,233,833.96 207,216.65 3.00 3,428.17 6,500.01 22.97 23.26 5,318.24 5,151.29 3,372.39 823.14 2,233,871.61 207,233.92 3.00 3,469.24 6,600.01 19.97 23.30 5,411.29 5,244.34 3,406.01 837.60 2,233,904.87 207,249.20 3.00 3,505.52 6,700.01 16.97 23.35 5,506.13 5,339.18 3,435.10 850.15 2,233,933.65 207,262.45 3.00 3,536.93 8111/2014 2:29:31PM Page 4 COMPASS 5000.1 Build 70 Halliburton 1-I,OLLIBU RTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 Company: Hilcorp Energy Company TVD Reference: As-Built @ 166.95usft Project: Ninilchik Unit MD Reference: As-Built @ 166.95usft Site: Paxton North Reference: True Well: Paxton#8 Survey Calculation Method: Minimum Curvature Wellbore: Paxton#8 Design: Paxton#8 WP5.0 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +El-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 5,402.05 6,765.41 15.01 23.39 5,569.00 5,402.05 3,451.64 857.29 2,233,950.01 207,270.00 3.00 3,554.79 End Dir :6765.41'MD,5568.88'TVD 6,765.76 15.00 23.39 5,569.33 5,402.38 3,451.73 857.33 2,233,950.09 207,270.03 3.00 3,554.88 6,800.01 15.00 23.39 5,602.42 5,435.47 3,459.86 860.85 2,233,958.14 207,273.75 0.00 3,563.66 6,900.01 15.00 23.39 5,699.01 5,532.06 3,483.62 871.12 2,233,981.63 207,284.60 0.00 3,589.31 7,000.01 15.00 23.39 5,795.60 5,628.65 3,507.37 881.40 2,234,005.13 207,295.45 0.00 3,614.96 7,100.01 15.00 23.39 5,892.19 5,725.24 3,531.13 891.67 2,234,028.63 207,306.30 0.00 3,640.61 7,200.01 15.00 23.39 5,988.79 5,821.84 3,554.88 901.95 2,234,052.13 207,317.15 0.00 3,666.27 7,300.01 15.00 23.39 6,085.38 5,918.43 3,578.64 912.22 2,234,075.63 207,328.00 0.00 3,691.92 7,400.01 15.00 23.39 6,181.97 6,015.02 3,602.39 922.50 2,234,099.12 207,338.85 0.00 3,717.57 7,500.01 15.00 23.39 6,278.57 6,111.62 3,626.15 932.77 2,234,122.62 207,349.70 0.00 3,743.22 7,600.01 15.00 23.39 6,375.16 6,208.21 3,649.90 943.05 2,234,146.12 207,360.55 0.00 3,768.87 7,700.01 15.00 23.39 6,471.75 6,304.80 3,673.66 953.32 2,234,169.62 207,371.40 0.00 3,794.52 7,781.53 15.00 23.39 6,550.50 6,383.55 3,693.03 961.70 2,234,188.77 207,380.25 0.00 3,815.44 T-65 7,800.01 15.00 23.39 6,568.34 6,401.39 3,697.41 963.60 2,234,193.11 207,382.25 0.00 3,820.17 7,900.01 15.00 23.39 6,664.94 6,497.99 3,721.17 973.87 2,234,216.61 207,393.10 0.00 3,845.83 8,000.01 15.00 23.39 6,761.53 6,594.58 3,744.92 984.14 2,234,240.11 207,403.95 0.00 3,871.48 8,100.01 15.00 23.39 6,858.12 6,691.17 3,768.68 994.42 2,234,263.61 207,414.80 0.00 3,897.13 8,200.01 15.00 23.39 6,954.71 6,787.76 3,792.43 1,004.69 2,234,287.11 207,425.65 0.00 3,922.78 . 8,254.66 15.00 23.39 7,007.50 6,840.55 3,805.42 1,010.31 2,234,299.95 207,431.58 0.00 3,936.80 I T-90 8,300.01 15.00 23.39 7,051.31 6,884.36 3,816.19 1,014.97 2,234,310.60 207,436.50 0.00 3,948.43 8,400.01 15.00 23.39 7,147.90 6,980.95 3,839.94 1,025.24 2,234,334.10 207,447.35 0.00 3,974.08 8,500.01 15.00 23.39 7,244.49 7,077.54 3,863.70 1,035.52 2,234,357.60 207,458.20 0.00 3,999.73 8,600.01 15.00 23.39 7,341.09 7,174.14 3,887.45 1,045.79 2,234,381.10 207,469.05 0.00 4,025.38 8,700.01 15.00 23.39 7,437.68 7,270.73 3,911.21 1,056.07 2,234,404.60 207,479.90 0.00 4,051.04 8,800.01 15.00 23.39 7,534.27 7,367.32 3,934.96 1,066.34 2,234,428.09 207,490.75 0.00 4,076.69 8,889.28 15.00 23.39 7,620.50 7,453.55 3,956.17 1,075.52 2,234,449.07 207,500.44 0.00 4,099.59 T-140 8,900.01 15.00 23.39 7,630.86 7,463.91 3,958.72 1,076.62 2,234,451.59 207,501.60 0.00 4,102.34 9,000.01 15.00 23.39 7,727.46 7,560.51 3,982.47 1,086.89 2,234,475.09 207,512.45 0.00 4,127.99 9,100.01 15.00 23.39 7,824.05 7,657.10 4,006.23 1,097.17 2,234,498.59 207,523.30 0.00 4,153.64 9,200.01 15.00 23.39 7,920.64 7,753.69 4,029.98 1,107.44 2,234,522.08 207,534.15 0.00 4,179.29 9,216.19 15.00 23.39 7,936.27 7,769.32 4,033.83 1,109.10 2,234,525.89 207,535.91 0.00 4,183.44 9,300.01 15.00 23.39 8,017.23 7,850.28 4,053.74 1,117.72 2,234,545.58 207,545.00 0.00 4,204.94 9,400.01 15.00 23.39 8,113.83 7,946.88 4,077.49 1,127.99 2,234,569.08 207,555.85 0.00 4,230.59 9,500.01 15.00 23.39 8,210.42 8,043.47 4,101.25 1,138.27 2,234,592.58 207,566.70 0.00 4,256.25 9,600.01 15.00 23.39 8,307.01 8,140.06 4,125.00 1,148.54 2,234,616.08 207,577.55 0.00 4,281.90 9,700.01 15.00 23.39 8,403.60 8,236.65 4,148.76 1,158.82 2,234,639.57 207,588.40 0.00 4,307.55 9,800.01 15.00 23.39 8,500.20 8,333.25 4,172.51 1,169.09 2,234,663.07 207,599.25 0.00 4,333.20 9,900.01 15.00 23.39 8,596.79 8,429.84 4,196.27 1,179.37 2,234,686.57 207,610.10 0.00 4,358.85 9,980.80 15.00 23.39 8,674.83 8,507.88 4,215.46 1,187.67 2,234,705.55 207,618.87 0.00 4,379.57 Total Depth:9980.81'MD,8674.72'TVD-51/2"x 8 1/2" 9,981.16 • 15.00 23.39 8,675.17 • 8,508.22 4,215.55 1,187.70 2,234,705.64 207,618.91 0.00 4,379.67 8/11/2014 2:29:31PM Page 5 COMPASS 5000.1 Build 70 • Halliburton I-IALLIBURTOIM Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 Company: Hilcorp Energy Company TVD Reference: As-Built @ 166.95usft Project: Ninilchik Unit MD Reference: As-Built @ 166.95usft Site: Paxton North Reference: True Well: Paxton#8 Survey Calculation Method: Minimum Curvature Wellbore: Paxton#8 Design: Paxton#8 WP5.0 Targets Target Name -hit/miss target Dip Angle Dip Dir. TVD +N/S +E/-W Northing Easting -Shape (°) (°) (usft) (usft) (usft) (usft) (usft) Paxton#8 Int Tgt2 0.00 0.00 5,569.33 3,451.73 857.33 2,233,950.09 207,270.03 -plan hits target center -Point Paxton#8 Srfc Tgt1 0.00 0.00 3,699.28 2,236.29 372.28 2,232,746.82 206,755.54 -plan hits target center -Point Paxton#8 BHL Tgt3 0.00 0.00 7,936.27 4,040.96 1,091.93 2,234,533.43 207,518.91 -plan misses target center by 18.60usft at 9216.12usft MD(7936.20 TVD,4033.81 N,1109.10 E) -Point Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name (") (") 3,600.00 3,028.43 9 5/8"x 12 1/4" 9-5/8 12-1/4 9,980.80 8,674.83 51/2"x81/2" 5-1/2 8-1/2 Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (usft) (usft) Name Lithology (°) (°) 8,889.28 7,620.50 T-140 0.00 2,363.26 2,068.50 Beluga 50 0.00 8,254.66 7,007.50 T-90 0.00 4,420.78 3,665.50 Top Tyonek 0.00 7,781.53 6,550.50 T-65 0.00 5,807.74 4,739.50 T-12 0.00 4,242.99 3,527.50 Beluga 135 0.00 Plan Annotations Measured Vertical Local Coordinates Depth Depth +NI-S +EI-W (usft) (usft) (usft) (usft) Comment 400.00 400.00 0.00 0.00 Start Dir 4°/100':400'MD,400'TVD 1,377.34 1,303.25 316.34 52.66 End Dir :1377.34'MD,1303.25'TVD 4,463.95 3,698.83 2,236.29 372.28 Start Dir 2°/100':4463.95'MD,3698.83'TVD 4,896.70 4,034.74 2,497.50 448.77 End Dir :4896.7'MD,4034.74'TVD 5,954.01 4,852.44 3,113.78 712.33 Start Dir 3°/100':5954.01'MD,4852.44'TVD 6,765.41 5,568.89 3,451.73 857.33 End Dir :6765.41'MD,5568.88'TVD 9,980.80 8,674.71 4,215.54 1,187.70 Total Depth:9980.81'MD,8674.72'TVD 8/11/2014 2:29:31PM Page 6 COMPASS 5000.1 Build 70 2 N 0 D 01 O J L L N I a te v D ME N O O Q11 LI N ii NQ>k 412 C 0)CU A r 0_ 0) L + °' a Z ° o E _ N M C N V z a c E • `° a u I i iii c >41 Q! fluI O U W A (//0 m C C co O W i d 7.1 1 0 _/ O O C N w Q to X Z m V a HWo 0 ■ P• d N . 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O N 0 N O 14 (, cO 06 ti CO � C1 N ,- O I _ V-3 (U11 og•Z)coped uogwede Q U TRANSMITTAL LETTER CHECKLIST WELL NAME: / Lhrj PTD: ' /0 / Development Service Exploratory Stratigraphic Test Non-Conventional FIELD: /' ! / /C.Cn ( POOL: (---).1), 1-7,--x,‘ �1 �La:.�J ?• , L'Ll..�=tom' 67 Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI LATERAL The permit is for a new wellbore segment of existing well Permit (If last two digits No. , API No. 50- - - - in API number are Production should continue to be reported as a function of the original between 60-69) API number stated above. 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 Pilot Hole ( PH) and API number (50- - - - ) from records, data and logs acquired for well (name on permit). The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce / inject is contingent upon issuance of a Spacing Exception conservation order approving a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC must be in no greater Dry Ditch Sample than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: Production or production testing of coal bed methane is not allowed for Non-Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application,the following well logs are Well Lo ,n also required for this well: gg g Requirements Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. Revised 4/2014 Ti To a) (o 0 0) a `t 0 0 O (n O N c O S a o To c E a) co • o ON a) v 4 -o > 0 -o 0 O h a) C 0 4 0 O 111 O 3, 0 0. rn a) E O o :-T N � �� Y - � E O C NO CV LL O •O -o C 0 V 3 N a O> a) ' a) • .5 _ 0' 0. C CA so _ • N 7 N, c• a y. a - t a) O a) 3 M a) CO CO m 3' n () w' c c v p _c v' m. _ o. o O co cp 0 c' E'� o' L > O (0 o' o Zco f0 O N O E � C. O. T >co m. _ 't �, .L.' C (/) -p Z 0 o (0 C U O •0, .0 •u) p,, as 0 V, a) Q , C o v 0 o w 4 v m m o, 3 a) X as z < • w $, c .C. 4Y N. a : O @ a3 C (0; 0 Q `t .3 O w w w c C. :° 0 N E M c ; w z 0 m CL co LL CC CC CCas a; CO 0 a. a 0 -4 0. >. Z .. 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THE STATE r'j''2 Ei'u- =1 = _ (7,12 :) , s t _ 333 We_t Seven n Avenue ( cl\'I:1:NC?i: sI..1i > ,ncl iorege A o,kc 99501 3572�; P:1 Z l l I. Luke Keller Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, SD Tyonek Undefined Gas Pool, Paxton #8 Hilcorp Alaska, LLC Permit No: 214-107 Surface Location: 2975' FEL, 876' FNL, SEC. 13, T1S, R14W, SM, AK Bottomhole Location: 1812' FNL, 1835' FEL, SEC. 12, T1S, R14W, SM, AK Dear Mr. Keller: Enclosed is the approved application for permit to drill the above referenced development well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce is contingent upon issuance of a conservation order approving a spacing exception. Hilcrop Alaska, LLC assumes the liability of any protest to the spacing exception that may occur. This permit to drill does not exempt you from obtaining additional permits or an approval 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 AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC 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 AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, JA Cathy P Foerster Chair DATED this 3`.1 ay of July, 2014. RECEIVED STATE OF ALASKA AL .A OIL AND GAS CONSERVATION COMM. DN JUL 14 2014 PERMIT TO DRILL AOGCC 20 AAC 25.005 la.Type of Work. 1 b.Proposed Well Class. Development-Oil ❑ Service- Winj ❑ Single Zone 0 • ic.Specify if well is proposed for: Drill 0. Lateral ❑ Stratigraphic Test ❑ Development-Gas 0 • Service-Supply ❑ Multiple Zone ❑ Coalbed Gas 0 Gas Hydrates 0 Redrill❑ Reentry 0 Exploratory 0 Service- WAG ❑ Service-Disp 0 Geothermal ❑ Shale Gas 0 2.Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11.Well Name and Number. Hilcorp Alaska,LLC Bond No. 022035244 • Paxton#8 ' 3.Address. 6.Proposed Depth: 12.Field/Pool(s): 3800 Centerpoint Drive Suite 1400,Anchorage,AK 99503 MD. 10,000' TVD 5,657' _ Ninilchik 4a. Location of Well(Governmental Section): 7.Proper Designation(Lease Number): Ninilchik,SD Tyonek Undef Gas. Surface: 2975'FEL,876'FNL,Sec 13,T1S,R14W,SM,AK rd. rookie-ADL 384372/p p q,(7 /r` Top of Productive Horizon 8.Land Use Permit: 13.Approximate Spud Date. 906'FSL,2564'FWL,Sec 12,T1S,R14W,SM,AK Surface agreement w/parcel fee owner 8/15/2014 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 1812'FNL, 1835'FEL,Sec 12,T1S,R14W,SM,AK 3507.84(ADL 384372) 360'from TPI to Unit Tract 162 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 166.69 feet 15.Distance to Nearest Well Open Surface: x-206350 • y-2230486' Zone-4 GL Elevation above MSL: 148.3 feet to Same Pool: 1757' 16.Deviated wells: Kickoff depth: 500 feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25 035) 0C Maximum Hole Angle: 40 degrees Downhole: 3722psi Surface: __249015si 2 85 7 P 5 c 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) Cond 16" 109 X-56 Weld 80' Surf. Surf. 80' 80' Driven 12-1/4" 9-5/8" 40 L-80 BTC 3,600' Surf. Surf. 3,600' . 3,013' • 313.4bb1/1761ft3 8-1/2" 5-1/2" 17 P-110 DQX 10,000' Surf Surf. 10,000' • 8,657' - 341.4bb1/1916 5ft3 19 PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments. Property Plat 0 BOP Sketch 0 Drilling Program 0 Time v.Depth Plot 0 Shallow Hazard Analysis❑ Diverter Sketch 0 Seabed Report 0 Drilling Fluid Program 0 20 AAC 25 050 requirements0 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Luke Keller Email Ikellerhilcorp.com Printed NameL."'-A eller Title Drilling Engineer / Signature •11110( Phone (907)777-8395 Date 7/14/2014 Commission Use Only Permit to Drill „ API Number: ' �,.�I // , Permit Approval. See cover letter for other Number: L///67 501-3• !. IF:: .eto ate: /( o(iLi requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed methan ,gas hydrates,or gas contained in shales: Ef, Other: 41 3.5 3: 13& P 7---;::3-/ Samples req'd: Yes 0 No Mud log req'd:Yes❑ Nog H2S measures: Yes No Directional svy req'd:Yes[i No ❑ �S.. ----r - �`� Spacing exception req'd: Yes No❑ Inclination-only svy req'd:Yes 0 Noa gl / 2 ."NI' 10-4-,E31 s re- (---11, 4) . G �' I APPROVED BY Approved by: N MISSIONER THE COMMISSION Date: 7-3o—/ -7' .gc•rq IG I I ` � Submit Form and Form 10-401(RI,sed 10/2012) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Attachments in Duplicate Idr// l O.V 7 17.7,61 Luke Keller Hilcorp Alaska, LLC Drilling Engineer P.O. Box 244027 Anchorage,AK 99524-4027 Tel 907 777 8395 Email Ikeller@hilcorp.com Hilcorp Energy Company July 14, 2014 Commissioner Alaska Oil &Gas Conservation Commission RECEIVED 333 W. 7th Avenue Anchorage, Alaska 99501 JUL 14 2014 Re: Paxton#5 AOGCC Dear Commissioner, • Enclosed for review and approval is the application for the Permit to Drill the Paxton#8 Development gas well. Paxton#8 is a crestal, apex, well on the deep Tyonek structure. Bottom hole location was chosen as it is the highest part of the subsurface structure based on the Paxton 4 and Dionne 4 wells. The base plan is a build and hold wellbore, with a kick-off point at 500' MD, and reaching a maximum angle of 40 deg. • Drilling operations are expected to commence approximately Aug 15th, 2014. The Saxon Rig# 147 will be used to drill the well and run the 5-1/2" long string. All known potential fresh water zones exist above 200'. This information is based off salinity calculations of neighboring water wells. Chlorides are 1100 ppm at the 171 —194' sand, 1800 ppm at the 505—535'sand, and 6000 • ppm at the 1040' sand. Furthermore, the TGAS (total gas) curve from offset mud logs begins registering shallow gas at depths just below the sandstone bed at 200'. • • Surface casing will be run to 3,600' MD / 3,013' ND and cemented to surface to ensure protection of these resources. Cement returns to surface will confirm TOC at surface. If cement returns to surface are not observed, a Temp log will be run between 6 — 18 hrs after CIP to determine TOC. Necessary remedial action will then be discussed with AOGCC authorities. All waste& mud generated during drilling and completion operations will be hauled to the Kenai Gas Field G&I facility ✓ for disposal/beneficial reuse depending on test results. If you have any questions, please don't hesitate to contact myself at 777-8395 or Paul Mazzolini at 777-8369. Sincerely, Luke Keller Drilling Engineer Hilcorp Alaska, LLC Page 1 of 1 Hilcorp Alaska, LLC Paxton #8 Drilling & Completion Program Version 1 July 10th, 2014 Paxton #8 Drilling Procedure Hilcorp Energy Company Contents 1.0 Well Summary 2 2.0 Management of Change Information 3 3.0 Tubular Program: 4 4.0 Drill Pipe Information: 4 5.0 Internal Reporting Requirements 5 6.0 Planned Wellbore Schematic 6 7.0 Drilling/Completion Summary 7 8.0 Mandatory Regulatory Compliance/Notifications 8 9.0 R/U and Preparatory Work 10 10.0 N/U 21-1/4"diverter 11 11.0 Drill 12-1/4"Hole Section 14 12.0 Run 9-5/8" Surface Casing 18 13.0 Cement 9-5/8" Surface Casing 21 14.0 BOP N/U and Test 24 15.0 Drill 8-1/2"Hole Section 25 16.0 Run 5-1/2"Production Casing 30 17.0 Cement 5-1/2"Production Casing 32 18.0 RDMO 35 19.0 Perf and Frac 35 20.0 BOP Schematic 36 21.0 Wellhead Schematic 37 22.0 Days Vs Depth 38 23.0 Formation Tops 39 24.0 Anticipated Drilling Hazards 40 25.0 Saxon Rig 147 Layout 42 26.0 FIT Procedure 43 27.0 Choke Manifold Schematic 44 28.0 Casing Design Information 45 29.0 8-1/2"Hole Section MASP 46 30.0 Spider Plot(NAD 27) (Governmental Sections) 47 31.0 Surface Plat(As Staked) (NAD 27) 48 32.0 Offset MW vs TVD Chart 49 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 1.0 Well Summary Well Paxton#8 Pad Paxton Planned Completion Type 2-7/8"prod tubing inside 5-1/2"production casing Target Reservoir(s) Beluga 135, Tyonek, T-12, T-65, T-90, T-140 Planned Well TD,MD/TVD 10,000' MD/8,657' TVD PBTD, MD/TVD 9,800' MD/8,657' TVD Surface Location (Governmental) 2975' FEL, 876' FNL, Sec 13, T1S,R14W, SM,AK Surface Location(NAD 27) X=206350,Y=2230486 Surface Location(NAD 83) Top of Productive Horizon (Governmental) 906'FSL,2564'FWL, Sec 12, T1S,R14W, SM,AK TPH Location(NAD 27) X=206652.46,Y=2232172.14 TPH Location(NAD 83) BHL(Governmental) 1812'FNL, 1835'FEL, Sec 12,T1S,R14W, SM,AK BHL(NAD 27) X=207594.81,Y=2234711.34 BHL(NAD 83) AFE Number 1412366D AFE Drilling Days 32 AFE Completion Days AFE Drilling Amount $5,546,488 AFE Completion Amount Maximum Anticipated Pressure (Surface) 2490 psi Maximum Anticipated Pressure (Downhole/Reservoir) 3722 psi Work String 4-1/2" 16.6# S-135 CDS-40 KB Elevation above MSL: 148.3' + 18.6' = 166.9' GL Elevation above MSL: 148.3' NGV29 BOP Equipment 11"5M T3-Energy Annular BOP 11"5M T3-Energy Double Ram 11" 5M T3-Energy Single Ram Page 2 Version 1 July,2014 ,„ Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 2.0 Management of Change Information Hilcorp Alaska, LLC HImaamm Changes to Approved Permit to Drill Date: Subject: Changes to Approved Permit to Drill for Paxton #8 File#: Paxton #8 Drilling and Completion Program Any modifications to Drilling&Completion Program will be documented and approved below. Changes to an approved APD will be ca+ 1icafe4e the AOGCC. V .St, "7-17 /J4 Date Procedure Change Approved Approved By By 0 Approval: Drilling Manager Date Prepared: Drilling Engineer Date Page 3 Version 1 July, 2014 Paxton #8 II Drilling& Completion Procedure Hilcorp Energy Company 3.0 Tubular Program: Hole OD(in) ID(in) Drift Conn Wt Grade Conn Burst Collapse Tension ,Section (in) OD (in) (#/ft) (psi _ (psi) (k-lbs) Cond 16" 15" - - 109 X-56 Weld 12-1/4" 9-5/8" 8.835" 8.75" 10.625" 40 L-80 BTC 5750 • 3090 916 8-1/2" 5-1/2" 4.892" 4.767" 6.05" 17 P-110 DQX 10640 7480 546 4.0 Drill Pipe Information: Hole OD (in) ID (in) TJ ID TJ OD Wt Grade Conn Burst Collapse Tension Section (in) (in) (#/ft) (psi) (psi) (k-lbs) All 4.5" 3.826 2.6875" 5.25" 16.6 S-135 CDS40 17,693 16,769 468k All casing will be new, PSL 1 (100% mill inspected, 10% inspection upon delivery to TSA in Fairbanks). Page 4 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 5.0 Internal Reporting Requirements 5.1 Fill out daily drilling report and cost report on Wellez. • Report covers operations from 6am to 6am • Click on one of the tabs at the top to save data entered. If you click on one of the tabs to the left of the data entry area—this will not save the data entered,and will navigate to another data entry tab. • Ensure time entry adds up to 24 hours total. • Try to capture any out of scope work as NPT. This helps later on when we pull end of well reports. 5.2 Afternoon Updates • Submit a short operations update each work day to pmazzolini@hilcorp.com , lkeller@hilcorp.com andjbarrett@hilcorp.com 5.3 Intranet Home Page Morning Update • Submit a short operations update each morning by 7am on the company intranet homepage. On weekend and holidays,ensure to have this update in before 5am. Each rig will be assigned a username to login with. 5.4 EHS Incident Reporting • Notify EHS field coordinator. 1. This could be one of(3)individuals as they rotate around. Know who your EHS field coordinator is at all times, don't wait until an emergency to have to call around and figure it out!!!! a. John Coston: 0: (907) 777-6726 C: (907)227-3189 b. Mark Tornai: 0: (907)283-1372 C: (907)748-3299 c. Thad Eby: 0: (907)777-8317 C: (907)602-5178 2. Spills: Kate Kaufman: 0:907-777-8329 C:907-244-8292 • Notify Drlg Manager 1. Paul Mazzolini: 0: 907-777-8369 C: 907-317-1275 • Submit Hilcorp Incident report to contacts above within 24 hrs 5.5 Casing Tally • Send final"As-Run"Casing tally to lkeller@hilcorp.com and jbarrett@hilcorp.com 5.6 Casing and Cmt report • Send casing and cement report for each string of casing to lkellerAhilcorp.com and jbarrett@hilcorp.com Page 5 Version 1 July, 2014 H Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 6.0 Planned Wellbore Schematic CASING DETAIL Ai _,_ I Mud A ,_,.,,, mice Wt Grade Conr. ID Thi: 6trn weight ( , Conductor- 16' Driven to 5 et 179 a.-56 Weld f.5. Surf . 80' Depth 1 11 •--)c<'s 9-5/8' surf.cog 4: L-5D 5TC E.625' Surf asoo' 6.6 PPg 5-1/2. prod casing 17 P.-11:1,C DOA 442 Surf 10,000' 9.5 ppg -USING 2-7/13W Productioh f4 LE: I BT 2 441' 5,..-F sow' TOC at Drilling Info '. 3100' py Hole Section Casing MW 11'491 '. .,.. ,- ‘r) 12-1/4' 9-5.18' 8-6 PPg .....- ..- ..,,),‘ '•.i 0 , 3-1:1' 9.5 ppe . . .,EWELRY DETAIL ',:.. c.,-.:.:•,,- .: CCD Iten • ' ... • .. • - LS:I SCS,SV . , =S02' CIM • . , • 5372 Prod Pkr . • . . L 53:3 Wireline re-entry gui de -..D 5-1 2- ' ' • 1 , . Hole • Planned Reservoir Objective ::- Top IhAD1 Elm(ND) ETC Pressure E`.''. :3-2:,i , . 5-,-:.p,3: 2,394 ' 2,072 891 5.27 2.41 , Bs-E2 11-1 4,060 - 3,531 1,511 5.27 :.41 . , 7:,,-,7y..-e,. 4,242 5,659 2,575 5.27 0.43. „-. T 5,450 - 4,743 2,0E; 5.27 2.41 T-53 7,573 6,554 2,525 5.27 7.43 7-91 6,079 7,011 3,015. 5.27 7.45 5,755 - 7,624 5.775 5.27 7.43 --_. --- . ----•' -.-,...4.-- .... , ........... 0,.• , —.—. . ..... , t if' , • . MID=9.800'3.1D;8,464'TVD TD=10.000'SW!8,6ST TVD Page 6 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 7.0 Drilling / Completion Summary Paxton#8 is a crestal,apex,well on the deep Tyonek structure. Bottom hole location was chosen as it is the highest part of the subsurface structure based on the Paxton 4 and Dionne 4 wells. The base plan is a build and hold wellbore,with a kick-off point at 500' MD,and reaching a maximum angle of 40 deg. Drilling operations are expected to commence approximately Aug 15th,2014. The Saxon Rig# 147 will be used to drill the well and run the 5-1/2"long string. All known potential fresh water zones exist above 200'. This information is based off salinity calculations of neighboring water wells. Chlorides are 1100 ppm at the 171 — 194' sand, 1800 ppm at the 505 — 535' sand, and 6000 ppm at the 1040' sand. Furthermore, the TGAS (total gas) curve from offset mud logs begins registering shallow gas at depths just below the sandstone bed at 200'. Surface casing will be run to 3,600' MD/3,013' TVD and cemented to surface to ensure protection of these resources. Cement returns to surface will confirm TOC at surface. If cmt returns to surface are not observed, a Temp log will be run between 6 — 18 hrs after CIP to determine TOC. Necessary remedial action will then be discussed with AOGCC authorities. All waste & mud generated during drilling and completion operations will be hauled to the Kenai Gas Field G&I facility for disposal/beneficial reuse depending on test results. General sequence of operations: 1. MOB Saxon Rig# 147 to well site 2. N/U 21-1/4" diverter. 3. Drill 12-1/4" hole to 3600' MD. Run and cmt 9-5/8" surface casing. • 4. N/D diverter,N/U &test 11" x 5M T3-Energy BOP. 5. Drill 8-1/2" hole section to 10,000' MD. Run wireline logs. Run and cmt 5-1/2" production - casing. 6. N/D BOP,N/U temp abandonment cap, RDMO. Reservoir Evaluation Strategy: 1. Surface hole: LWD: GR+Res+Den/Neu(Triple Combo). No open hole logs planned. 2. Production Hole: LWD: GR+Res+Den/Neu(Triple Combo). Open hole wireline logging— Dipole sonic and(25) rotary sidewall cores. 3. Mud loggers from spud to TD. Page 7 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 8.0 Mandatory Regulatory Compliance / Notifications Regulatory Compliance Ensure that our drilling and completion operations comply with the below AOGCC regulations. If additional clarity or guidance is required on how to comply with a specific regulation, do not hesitate to contact the Anchorage Drilling Team. • BOPs shall be tested at (2) week intervals during the drilling and completion of Paxton #8. Ensure to provide AOGCC 24 hrs notice prior to testing BOPs. • The initial test of BOP equipment will be to 250/3500 psi & subsequent tests of the BOP equipment will be to 250/3500 psi for 5/5 min (annular to 50% rated WP, 2500 psi on the high test for initial and subsequent tests). Confirm that these test pressures match those specified on the APD. • If the BOP is used to shut in on the well in a well control situation, we must test all BOP components utilized for well control prior to the next trip into the wellbore. This pressure test will be charted same as the 14 day BOP test. • All AOGCC regulations within 20 AAC 25.033 "Primary well control for drilling: drilling fluid program and drilling fluid system". • All AOGCC regulations within 20 AAC 25.035 "Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements" • Ensure AOGCC approved drilling permit is posted on the rig floor and in Co Man office. AOGCC Regulation Variance Requests: • No variance requests at this time. Page 8 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company Summary of BOP Equipment and Test Requirements Hole Section Equipment Test Pressure(psi) 12-1/4" • 21-1/4"x 2M diverter c/w 16"diverter line Function Test Only • 11"x 5M T3-Energy(Model 7082)Annular BOP • 1 I"x 5M T3-Energy Double Ram Initial Test:250/3500 o Blind ram in btm cavity (Annular 2500 psi) • Mud cross 8-1/2" • 11"x 5M T-3 Energy Single Ram • 3-1/8"5M Choke Line Subsequent Tests: • 2-1/16"x 5M Kill line 250/3500 • 3-1/8"x 2-1/16"5M Choke manifold (Annular 2500 psi) • Standpipe,floor valves,etc • Primary closing unit: Control Technologies accumulator unit, 5 station, 120 gallon(12 x 11 gal bottles). • Primary closing hydraulic pressure is provided by an electrically driven triplex pump. Emergency pressure is provided by bottled nitrogen. Required AOGCC Notifications: • Well control event(BOPS utilized to shut in the well tq control influx of formation fluids). • 24 hours notice prior to spud.( D;v ff r ) • 24 hours notice prior to testing BOPs. • 24 hours notice prior to casing running& cement operations. • Any other notifications required in APD. Regulatory Contact Information: AOGCC Jim Regg/AOGCC Inspector/(0): 907-793-1236/Email:jim.regg@alaska.gov Guy Schwartz/Petroleum Engineer/(0): 907-793-1226/(C): 907-301-4533 /Email:guy.schwartz@alaska.gov Victoria Ferguson/Petroleum Engineer/(0): 907-793-1247/Email: Victoria.ferguson@alaska.gov Primary Contact for Opportunity to witness:AOGCC.Inspectors@alaska.gov Test/Inspection notification standardization format:http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html Notification/Emergency Phone: 907-793-1236(During normal Business Hours) Notification/Emergency Phone: 907-659-2714(Outside normal Business Hours) Page 9 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 9.0 R/U and Preparatory Work 9.1 Set 16" conductor at 60' below ground level. 9.2 Dig out and set impermeable cellar. 9.3 Install Seaboard slip-on 16-3/4" 3M"A"section. Ensure to orient wellhead so that tree will line up with flowline later. 9.4 Level pad and ensure enough room for layout of rig footprint and R/U. 9.5 Layout Herculite on pad to extend beyond footprint of rig. i 9.6 R/U Saxon Rig# 147, spot service company shacks, spot&R/U company man & toolpusher offices. 9.7 Mud loggers ARE required on the surface hole section. 9.8 After rig equipment has been spotted, R/U handi-berm containment system around footprint of rig. 9.9 Mix mud for 12-1/4"hole section. 9.10 Set test plug in wellhead prior to N/U diverter to ensure nothing can fall into the wellbore if it is accidentally dropped. 9.11 Install 5-1/2" liners in mud pumps. • TSM 1000 mud pumps are rated at 3633 psi (85%)/333 gpm (100%)with 5-1/2"liners. Page 10 Version 1 July,2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy company 10.0 N/U 21-1/4" diverter 10.1 N/U 21-1/4"Hydril MSP 2M diverter System. • N/U 16-3/4" 3M x 21-1/4" 2M DSA (Hilcorp) on 16-3/4" 3M wellhead. • N/U 21-1/4" diverter"T". • Knife gate, 16" diverter line. • Ensure diverter R/U complies with AOGCC reg 20.AAC.25.035(C). 10.2 Function test diverter. Ensure that the knife gate and annular are operated on the same circuit so that knife gate opens prior to annular closure. /00 F. 1,>pr._r s 10.3 Ensure to set up a clearly marked"warning zone" is established on each side and ahead of the vent line tip. "Warning Zone"must include: • A prohibition on vehicle parking • A prohibition on ignition sources or running equipment • A prohibition on staged equipment or materials • Restriction of traffic to essential foot or vehicle traffic only. 10.4 Set 15.375" ID wearbushing in wellhead. Page 11 Version 1 July, 2014 Paxton #8 11 Drilling & Completion Procedure Hilcorp Energy Company 10.5 Rig and diverter orientation on the Paxton Pad: 5, LIP 'oV / `C Q ((t meq'' 1, 3.\'E_ at•aat• l T _ .'_ FAX1r4.4 aS NE".„,r4p,-/14”' .� 4 ..„„,,, ,.....,, , 4. _ / , , ..... .,„., , /1 ,-- d '� . . . / .: ,,. / / MICNX6WE.t 1 /'''1 •d. ■a_ IV. 41,0441;-:)/ ' ♦ t r--ji r' ,•!•• .4,•:•,,„:, Y• r( . /r/ 7 I �/1'Ir.` °.(i .1.411rI 7 /� 141 Fr, ' !.-;:i r Page 12 Version 1 July, 2014 Paxton#8 Drilling & Completion Procedure Hilcorp Energy Company 10.6 Diverter Schematic: Paxton#8 i f l l Ili I l . ill Ill. 1101 Annular Preventer 21-74" 2 1 frt ]inn fin , Kn:fc Gate Z I! Ii! III III III U 1k)" l)pli:fiCf Diverter Tee,21-W x 21-W x 2M w/16"ANSI 150 outlet In —rit Ill Ili 16-%"3Mx21-'h"2M OSA it= 41 E ' 'r- �t� �{ a. Seaboard 16-W 3M • Casing head Assy 1F. Page 13 Version 1 July. 2014 Paxton #8 II Drilling & Completion Procedure Hilcorp Energy Company 11.0 Drill 12-1/4" Hole Section 11.1 P/U 12-1/4" directional drilling assy: • Ensure BHA components have been inspected previously. • Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. • Ensure TF offset is measured accurately and entered correctly into the MWD software. • Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. • Workstring will be 4.5" 16.6# S-135 CDS40. 11.2 12-1/4" BHA (GR+Res + Den/Neu LWD planned in surface hole): COMPONENT DATA item . th Cumulative Descr Number, Fill M ( .. - (in) ... ) Length (ft) Ell HDBS FX56M PDC 12.200 2.750 12.250 378..15 B 6.578'REG 1.00 1.00 © 8"SperryDrill Lobe 415-5.3 stg IIIIIIIIIIIIIIIIII 8.000 5.000 ® 121.08 B 6-578"REG 28.99 - Stabilizer -__ 11.500 _--- © Non Mag Stabilizer 8.000 2.813 12.125 150.12 B 6-578'REG 6.00 35.99 Q 8'DM Collar(Directional) 8.000 3.500 147.40 B 6-5.8'REG 9.20 45.19 © 8"TM-HOC(puller) 8.150 4.000 145.20 B 6-578'REG 15.77 60.96 6 Non Mag Flex Drill Collar 8.000 3.000 147.221:1= 30.00 90.96 © Non Mag Flex Drill Collar 8.000 3.000 147.22 B 6-578'REG 30.00 120.96 Q X-0 6.518 Reg Pin X 4-122"IF Box 8.000 2.813 150.12 11021= 3.50 124.46 9 6-314'Non Mag Flex Drill Collar 6.750 2.750 101.71 B 4-1(2'IF 30.00 154.46 10 6-314'Non Meg Flex Drill Collar 6.750 2.750 101.71 B 4-11T IF 30.00 184.46 LI X-O 4-1(2"IF Pin X 4-112 CDS 40 Box 6.500 2.750 92.85 B 4.5"COS 40 2.75 187.21 ® 6 joints 4-1(T CDS 40 HWDP - 4.500 2.500 - 37.47 180.00 MOM v' ® X-0 4-1(2"CDS 40 Pin X 4-1(2"IF Box 6.500 2.750 92.85 B 4-1(2'IF 2.75 369.96 Weatherford 6-114"Hyd Jar 6250 2.250 91.01 B 4-1/2"IF 30.00 399.96 ® X-O 4-1(T IF Pin X 4-1i2'CDS 40 Box 6.500 2.750 92.85 B 4.5"COS 40 2.75 402.71 LE 19 Joints 4-1(2'CDS 40 HWDP 4.500 2.500 3747 570.00 MEM Total: 972.71 BiT DATA Bit Number Nozzles :9x 13 Bit Size (in) : 12.250 TFA (int) : 1.1666 Manufacturer Dull Grade In . Model Dull Grade Out . Serial Number .• MOTOR DATA Motor Number : 2 Bend (deg) : 1.15 OD (in) : 8.000 Nozzles (32nd) : 0.0 Manufacturer : Sperry Drilling Avg Diff Press . Model SperryOrill Cumul Cir Hrs .• Serial Number . Page 14 Version 1 July, 2014 Paxton#8 Drilling & Completion Procedure Hilcorp Energy Company 11.3 Primary Bit: 12-1/4" (311MM) QHC1GRC PRODUCT SPECIFICATIONS I&DC Code 117W X44' 0. Total Tooth Count 67 Gage Row Tooth Count 39 Journal Angle 33` 111 Offset(1,'16") 6 Jet Nozzle Types Standard 83244 Extended. 302447 Center Jet (If Center Jetted)501813 T.J.Connection 6-5/r(API Reg.) Recommended Make-Up Torque* 28000,32000 Ribs. Bit Weight(Boxed) 250 Lbs.(113 Kg.) Bit Breaker (Mat. 9Legac ) 5I53S3/506463 Imp PRODUCT FEATURES ��" '� . New patented Diamond"'Claw R tooth bit design. . Tungsten carbide'surf inserts in gage teeth for added gage protection. �++ . Newly formulated proprietary hardfacing on cutting structure and .� gage maximizes carbide and diamond volume for ultimate wear resistance. . High-speed bearing designed for high rpm and high-energy applications. . Innovative mechanical pressure compensating system provides reliable pressure equalization and relief for maximum bearing and seal life. • Raised tungsten carbide inserts and proprietary hardfacing provides maximum arm protection in abrasive and directional applications while minimizing drill string torque. ;0« . QuadPackRPlus Series incorporates its successful'longevity" s features and patented engineered hydraulics system for optimal cleaning efficiency. • Center jet feature to prevent bit balling problems Material#ti22394 •Calculations based on recommendations from API and tool joint manufacturers. ICJ 2012 Halliburton.All rights reserved.Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale. Page 15 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 11.4 4-1/2" Workstring&HWDP will come from Saxon. Jars will come from Weatherford. 11.5 Begin drilling out from 16"conductor at reduced flow rates to avoid broaching the conductor. 11.6 Drill 12-1/4"hole section to 3,600' MD. Confirm this setting depth with the geologist and Drilling Engineer while drilling the well. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 500 - 550 gpm. Ensure shaker screens are set up to handle this flowrate. • Utilize Inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team. • Keep swab and surge pressures low when tripping. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. • TD the hole section in a good shale btwn 3500' MD and 3700' MD. • Take MWD surveys every stand drilled (60' intervals). 11.7 12-1/4"hole mud program summary: Weighting material to be used for the hole section will be barite. Additional barite will be on location to weight up the active system(1) ppg above highest anticipated MW. We will start with a simple gel + FW spud mud at 8.8 ppg. Pason PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 8.8-9.5 ppg Pre-Hydrated Aquagel/freshwater spud mud Properties: Depths Density Viscosity Plastic Viscosity Yield Point API FL LGS 80-3600' 8.8-9.5' 85-150 20-40 25-45 <10 <15% System Formulation: M-1 Gel + FW spud mud Product ' Concentration Fresh Water 0.905 bbl M-I Gel Export 20 ppb M-I Wate As needed Soda Ash 0.5 ppb Caustic Soda 0.1 ppb Busan 1060 0.04ppb Page 16 Version 1 July,2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 11.8 At TD; pump sweeps, CBU, and pull a wiper trip back to the 16" conductor shoe. 11.9 TOH with the drilling assy, handle BHA as appropriate. 11.10 No open hole logging program planned for Paxton#8 surface hole. Page 17 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 12.0 Run 9-5/8" Surface Casing 12.1 R/U and pull 15.375" wearbushing. 12.2 R/U Weatherford 9-5/8" casing running equipment. • Ensure 9-5/8" BTC x CDS 40 XO on rig floor and M/U to FOSV. • R/U fill-up line to fill casing while running. • Ensure all casing has been drifted on the location prior to running. • Be sure to count the total #of joints on the location before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/vendor&model info. 12.3 P/U shoe joint, visually verify no debris inside joint. 12.4 Continue M/U&thread locking shoe track assy consisting of: • (1) Shoe joint w/float shoe bucked on (thread locked). • (1)Joint with coupling thread locked. • (1) Joint with float collar bucked on pin end &thread locked. • Install (2) centralizers on shoe joint over a stop collar. 10' from each end. • Install (1) centralizer, mid tube on thread locked joint and on FC joint. • Ensure proper operation of float equipment. 12.5 Continue running 9-5/8" surface casing • Fill casing while running using fill up line on rig floor. • Use"API Modified"thread compound. Dope pin end only w/paint brush. • M/U connections to the base of the triangle stamped on the pin end. Note M/U torque values required to achieve this position. • After making up several connections, use the torque required to M/U to base of triangle as the M/U torque and continue running string. • Install (1)centralizer every other joint to 300'. Do not run any centralizers above 300' in the event a top out job is needed. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 9-5/8" BTC Estimated M/U Torque Casing OD Est Torque to Reach Triangle Base 9-5/8" 9,630 ft-lbs Page 18 Version 1 July, 2014 Paxton#8 Drilling & Completion Procedure Hilcorp Energy Company Tenaris Casing and Tubing Performance Data Choose pipe size,wall thickness and steel grade to view API connection options and performance data. Size .111111:1Wall Grade Connection MIMI Unit _0 Pipe Body Data GEOMETRY A Nominal OD 9.625 in Wall Thickness 0.395 in API Drift Diameter 8.679 in Nominal Weight 40.00 lbslft Nominal ID 8.835 in Alternate Drift Diameter 8.75 in Plain End Weight 38.97 lbslft Nominal Cross Section 11.454 sq in PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Body Yield Strength 916,000 lbs Internal Yield Pressure 5,750 psi Collapse Pressure 3,080 psi j I° Connection Data GEOMETRY Regular OD 10.625 in Threads Per Inch 5 Make-Up Thread Tums 1 PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Joint Strength 947,000 lbs Internal Pressure 5,750 psi Resistance _._ TenarisHvdril Premium Connections Print I Contact Us Ver 8.6 12.6 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 12.7 Slow in and out of slips. 12.8 P/U casing hanger joint and M/U to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe as close to TD as possible. Strap the landing joint while it is on the deck and mark the joint at (1) ft intervals to use as a reference when landing the hanger. 12.9 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. Page 19 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 12.10 R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. 12.11 After circulating, lower string and land hanger in wellhead again. Page 20 Version 1 July,2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 13.0 Cement 9-5/8" Surface Casing 13.1 Hold a pre job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. Ensure mud& water can be delivered to the cmt unit at acceptable rates. • How to handle cmt returns at surface. • Which pump will be utilized for displacement, and how fluid will be fed to displacement pump. • Positions and expectations of personnel involved with the cmt operation. 13.2 Document efficiency of all possible displacement pumps prior to cement job 13.3 R/U cmt head (if not already done so). Ensure top and bottom plugs have been loaded correctly. 13.4 Pump 5 bbls 10 ppg spacer. Test surface cmt lines. 13.5 Pump remaining 35 bbls 10 ppg spacer. 13.6 Drop bottom plug. Mix and pump cmt per below recipe. 13.7 Cement volume based on annular volume + 50%open hole excess. Job will consist of lead & tail, TOC brought to surface. Estimated Total Cement Volume: Section: Calculation: Vol(BBLS) Vol(ft3) LEAD: 80' x .129 bpf= 10.3 57.8 16" Conductor x 9-5/8" casing annulus: LEAD: (3000' — 80') x .0558 bpf x 1.5 = 244.4 1372 12-1/4" OH x 9-5/8" Casing annulus: Total LEAD: 254.7 bbl 1430 ft3 671 S r TAIL: (3600'-3000') x .0558 bpf x 1.5 = 50 282 12-1/4" OH x 9-5/8" Casing annulus: TAIL: 90 x .096 bpf = 8.7 48.8 9-5/8" Shoe track: Li Total TAIL: 58.7 bbl 331 ft3 2c. SA Page 21 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company Cement Slurry Design: Lead Slurry (3000' MD to surface) Tail Slurry (3600' to 3000' MD) System Extended Conventional Density 12.5 lb/gal 15.2 lb/gal Yield 2.13 ft3/sk ✓ 1.25 ft3/sk Mixed 12.02 gal/sk 5.7 gal/sk Water Mixed Fluid 12.03 gal/sk 5.71 gal/sk Code Description Concentration Code Description Concentration Type1 Cement 94 lb/sk WBWOB Type1 Cement 94 lb/sk WBWOB Static Free De-Foamer 0.005 lbs/sk Static Free De-Foamer 0.005 lbs/sk CaCI Accelerator 2% bwoc CaCI Accelerator .25%bwoc Additives CD-32 Dispersant 0.4% bwoc CD-32 Dispersant 0.5%bwoc FL-52 Fluid Loss Add 0.3% bwoc FL-52 Fluid Loss Add 0.2%bwoc FP-6L De-Foamer 1 gal/100 sk FP-6L De-Foamer 1 gal/100 sk Na Extender 2% bwoc Metasillicate 13.8 Attempt to reciprocate casing during cement pumping if hole conditions allow. Keep the hanger elevated above the wellhead while working. If the hole gets "sticky", land the hanger on seat and continue with the cement job. 13.9 After pumping cement, drop top plug and displace cement with 9.5 ppg Kla-shield. 13.10 Ensure cement unit is used to displace cmt so that volume tracking is more accurate. 13.11 Displacement calculation: 3500' x .0758 bpf=265.3 bbls 13.12 Monitor returns closely while displacing cement. Adjust pump rate if necessary. If hanger flutes become plugged, open wellhead side outlet in cellar and take returns to cellar. Be prepared to pump out fluid from cellar. Have some sx of sugar available to retard setting of cement. 13.13 Do not overdisplace by more than V2 shoe track volume. Total volume in shoe track is 8.7 bbls. 13.14 Be prepared for cement returns to surface. If cmt returns are not observed to surface, be prepared to run a temp log btwn 6— 18 hours after CIP. 13.15 Be prepared with small OD top out tubing in the event a top out job is required. The AOGCC will require us to run steel pipe through the hanger flutes. The ID of the flutes is 1.5". Page 22 Version 1 July, 2014 Paxton#8 Iti Drilling & Completion Procedure Hilcorp Energy Company 13.16 Bump the plug with 500 psi over displacement pressure. Bleed off pressure and confirm floats are holding. If floats do not hold, pressure up string to final circulating pressure and hold until cement is set. Monitor pressure build up and do not let it exceed 500 psi above final circulating pressure if pressure must be held. 13.17 R/D cement equipment. Flush out wellhead with FW. 13.18 Back out and L/D landing joint. Flush out wellhead with FW. 13.19 M/U pack-off running tool and pack-off to bottom of Landing joint. Set casing hanger packoff. Run in lock downs and inject plastic packing element. 13.20 Lay down landing joint and pack-off running tool. Ensure to report the following on wellez: • Pre flush type,volume(bbls)&weight(ppg) • Cement slurry type, lead or tail,volume&weight • Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration a. Pump rate while displacing,note whether displacement by pump truck or mud pumps,weight&type of displacing fluid b. Note if casing is reciprocated or rotated during the job c. Calculated volume of displacement, actual displacement volume,whether plug bumped&bump pressure, do floats hold d. Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure e. Note if pre flush or cement returns at surface&volume f. Note time cement in place g. Note calculated top of cement h. Add any comments which would describe the success or problems during the cement job Send final "As-Run" casing tally & casing and cement report to lkeller@hilcorp.com. This will be included with the EOW documentation that goes to the AOGCC. Page 23 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 14.0 BOP N/U and Test 14.1 N/D the 21-1/4"diverter assy. 14.2 N/U Seaboard multi-bowl wellhead assy. Install packoff 9-5/8"P-seals. Test to 3000 psi. 14.3 N/U 11"x 5M T3-Energy BOP as follows: • BOP configuration from Top down: 11"x 5M T3-Energy annular BOP/11"x 5M T3-Energy Model 6011i double ram/11"x 5M mud cross/11"x 5M T3-Energy Model 6011i single ram • Double ram should be dressed with 2-7/8 x 5-1/2" VBRs in top cavity, blind ram in btm cavity. • Single ram should be dressed with 2-7/8 x 5-1/2" VBRs • N/U bell nipple, install flowline. • Install (2) manual valves& a check valve on kill side of mud cross. • Install (1) manual valve on choke side of mud cross. Install an HCR outside of the manual valve. 14.4 Run 4-1/2"BOP test assy, land out test plug(if not installed previously). • Test BOP to 250/3500 psi for 5/5 min. Test annular to 250/2500 psi for 5/5 min. • Ensure to leave "B" section side outlet valves open during BOP testing so pressure does not build up beneath the test plug. 14.5 R/D BOP test assy. 14.6 Dump and clean mud pits, send spud mud to G&I pad for injection. 14.7 Mix 9.5 ppg Kla-Shield mud system. 14.8 Keep mud loggers R/U for production hole section. 14.9 Set 10" ID wearbushing in wellhead. 14.10 Rack back as much 4-1/2"DP in derrick as possible to be used while drilling the hole section. 14.11 Keep 5-1/2"liners in mud pumps. Page 24 Version 1 July, 2014 . .._...._. . Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 15.0 Drill 8-1/2" Hole Section 15.1 P/U 8-1/2"directional BHA. 15.2 Ensure BHA components have been inspected previously. 15.3 Drift and caliper all components before M/U. Visually verify no debris inside components that cannot be drifted. 15.4 TF offset is measured accurately and entered correctly into the MWD software. 15.5 Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. 15.6 Workstring will be 4.5" 16.6# S-135 CDS40. Page 25 Version 1 July, 2014 Paxton #8 1111 Drilling & Completion Procedure Hilcorp Energy Company 15.7 8-1/2" BHA (Includes GR+Res+Den/Neu LWD components): ✓ COMPONENT DATA hem .. OD 10 Gauge Weight Top Length Cumulative' Descriptio`'- `NUMMI Connection {in} {in) {iny Phpf) (81) Length (ft); 1 HOBS-FX650 8.400 2.50C 8.520 172.13 P 4-112"REG 1.0C 1.00 2 7"SperryDtill Labe 718-6.0 stg 7.000 4.952 93.13 B 4-112"IF 27.38 28.38 Stabilizer 7. 3 Non Meg Float Sub 6.750 2.750 131 71 B 4-112"IF 3.0C 31.38 4Integral Blade Stabilizer(NMj 6.750 2.613 8375 130 77 B 4-112"IF 5.0C 36.38 5 y 6 314"DM(Directional) 6.750 3.'25 13340 B 4-112'IF 9.20 45.58 6 6 314"DGR(Gamma) 6.750 1.920 97.80 B 4-1/2"IF 4.55 50.14 7 6 314"EWR-P4 (Resistvityi 6.750 2.000 134.30 B 4.112"IF 12.10 62.24 8 6 314'HC1M (Process D'i 6.750 1.920 131 70 B 4412"IF 4.97 67.21 9 6 3.+4"ALD Collar 175C 3 SKS I 6.750 1.920 9.20 C 134 30 P NC 50 14 54 81.75 Stabilizer 9.2 3 13 6 314"CTN Collar 175C 30KSI 6.750 1.905 102.30 B NC 50 11.84 93.59 11 6 314"TM-HOC(Pulser) 6.900 3.250 103.60 B 4-112"IF 15.59 109.18 12 6-3+4"Non Mag Flex Drill Collar 6.750 2.813 100.77 B 4-112"IF 30.00 139.18 13 6-3+4'Non Mag Flex Drill Collar 6.750 2.813 130 77 B 4-112"IF 30.00 169 18 14 X-O 4-112"CDS 40 Box X 4-112"IF Pin 6.500 2.750 92.85 B 4.5"CDS 40 2.75 171.93 15 6 Joints 4.1.2"CDS 40 HWDP 4.500 2.500 37.47 180.00 351.93 16 X-O 4-112"IF Box X 4-1/2"CDS 40 Pin 6.500 2.750 92.85 B 4-112'IF 2.75 354 68 17 Weatherford 6-114"Jars 6.250 2.250 91.01 B 4-112"IF 30.00 394.68 18 X-O 4-112"IF Pin X 4-1/2"CDS 40 Box 6.500 2.750 92.85 B 4.5"CDS 40 2.75 387.43 19 19 Joints 4-12"CDS 40 HWDP 4.500 2.500 37.47 570.00 957.43 IIEZIIIIUEL43_ BIT DATA Bit Number Nozzles :5x13 Bit Size (in) : 8.500 TFA (in2) :0.6401 Manufacturer Dull Grade In . Model Dull Grade Out . Serial Number .• Page 26 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 15.8 Primary Bit: 8-1/2" (216mm) MM65M PRODUCT SPECIFICATIONS Cutter Type SelectCutter I.kDC Code M324 Body Type MATRIX `' Total Cutter Count 41 Cutter Distribution 13mm lomm Face t 29 tle Gauge 5 0 �� Up Drill 6 0 Number of Large Nozzles 0 Number of Medium Nozzles 0 Number of Small Nozzles 6 Number of Micro Nozzles Number of Ports(Size) 0 Number of Replaceable Ports(Size) 0 • Junk Slot Area(sq in) 14.81 ., Normalized Face Volume 42.13% API Connection 4-1+2 REG.PIN Recommended Make-Up Torques 12.461—17366 Ft'lbs. Nominal Dimensions" { Make-Up Face to Nose 10.73 in-273 mm Gauge Length 2.5 in-64 mm Sleeve Length 0 in-0 mm Shank Diameter 6 in-152 mm Break Out Plate(Mat.#;Legacy#) 181954(44040 Approximate Shipping Weight 160Lbs.-73Kg. ra' SPECIAL FEATURES 1/32"Relieved Gage,Combination Backream/Up-Drill Cutters, Secondary Cutting Element-"R"Feature,TSP Gage Material#803275 'Bit specific recommended make-up torque is a function of the bit I.D.and actual bit sub O.D.utilized as specified in API RP7G Section A.R_2. "Design dimensions arc nominal and may vary slightly on manufactured product.Halliburton Drill Bits and Services models arc continuously reviewed and refined. Product specifications may change without notice. C 2013 Halliburton.All rights reserved.Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale. Page 27 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 15.9 8-1/2"hole section mud program summary: Weighting material to be used for the hole section will be salt and calcium carbonate. Additional calcium carbonate will be on location to weight up the active system (1) ppg above highest anticipated MW. NOTE: Only use the "Black Products" & corrosion inhibitors if absolutely necessary. These products can leave behind a damaging skin that affects productivity of the well. Pason PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, Toolpusher office, and mud loggers office. System Type: 9.5 ppg Kla-Shield fresh water based drilling fluid with 6%KC1. Properties: Depths Density Plastic Viscosity Yield Point Chlorides API FL pH 3600'-10,000' 9.5 10-20 15-25 60,000—70,000 <8 9.0- 10 System Formulation: M-I Swaco Kla-Shield with 6% KCI Product Concentration/Function Water Base Fluid Busan 1060 0.4 ppb Biocide Soda Ash 0.25 ppb PH/Hardness Control Flowzan 1.0 ppb Viscosifier/Rheology KCL 21.8 ppb weight/inhibition NaCI Salt 20.0ppb weight/inhibition Poly Pac Sup UL 0.75 ppb API Fluid Loss EMI-2009 2-3%v/v Clay/Shale inhibitor Safe-Carb 40 If needed for weight increase over Congor 404 9.0ppg Asphasol Supreme Corrosion Mitigation Sack Black 4ppb Shale/Coal Stabilizer 3ppb-Gilsonite Shale/Coal Stabilizer 15.10 TIH w/ 8-1/2"directional assy to TOC. Shallow test MWD and LWD on trip in. Note depth TOC tagged on AM report. 15.11 R/U and test casi , to 2900 e si/30 min. Ensure to record volume/pressure and plot on FIT graph. AOGCC r,g is 51'o of burst= 5750 /2 =2875-2900 psi 15.12 Drill out shoe track and 20' of new formation. Page 28 Version 1 July, 2014 Paxton#8 Drilling & Completion Procedure Hilcorp Energy Company 15.13 CBU and condition mud for FIT. 15.14 Conduct FIT to 12 ppg EMW. Note: Offset field test data predicts frac gradient at the 9-5/8"shoe to be btwn 17- 18 ppg EMW. A 12 ppg FIT results in a 2.5 ppg kick margin while drilling with the planned MW of 9.5 pp& 15.15 Drill 8-1/2"hole section to 10,000' MD / 8,657' TVD. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Pump at 400 - 450 gpm. Ensure shaker screens are set up to handle this flowrate. • Utilize inlet experience to drill through coal seams efficiently. Coal seam log will be provided by Hilcorp Geo team, try to avoid sliding through coal seams. Work through coal seams once drilled. • Keep swab and surge pressures low when tripping. • Make wiper trips every 500' or every couple days unless hole conditions dictate otherwise. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. Keep HTHP fluid loss < 10. • Take MWD surveys every other stand drld. Surveys can be taken more frequently if deemed necessary. • Mud loggers: Take samples every 30 ft, with 20 ft samples in zones of interest. Two sets of / cuttings required, gas chromatograph,pixler plots. 15.16 At TD; pump sweeps, CBU, and pull a wiper trip back to the 9-5/8" shoe. 15.17 TOH with the drilling assy, stand back BHA if possible. Drop a drift on the last trip out of the hole in preparation for running the liner. 15.18 R/U and run OH wireline logs consisting of: 1 • Dipole Sonic • Rotary sidewall cores (25). 15.19 Monitor the well at all times on the trip tank while logging. 15.20 After logging objectives accomplished,pick up a wiper trip BHA and make another run to TD. Circ B/U at TD and TOH. Rack back DP, handle BHA as appropriate. Page 29 Version 1 July,2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 16.0 Run 5-1/2" Production Casing 16.1. R/U 5-1/2" casing running equipment. • Ensure 5-1/2"DQX x CDS 40 crossover on rig floor and M/U to FOSV. • R/U fill up line to fill casing while running. • Ensure to R/U Tesco or Weatherford CRT so that string can be rotated if necessary while running. • Ensure all casing has been drifted on the deck prior to running. • Be sure to count the total#of joints on the deck before running. • Keep hole covered while R/U casing tools. • Record OD's, ID's, lengths, S/N's of all components w/vendor&model info. 16.2. P/U shoe joint,visually verify no debris inside joint. 16.3. Continue M/U&thread locking shoe track assy consisting of: • (1) Shoe joint w/shoe bucked on&threadlocked (coupling also thread locked). Install (2) solid body centralizers on shoe joint prior to bucking on float shoe. The centralizers should be held in place 10' from each end via stop rings on either side. • (1) Thread locked joint(coupling thread locked). • (1) Joint with float collar bucked on pin end&threadlocked(coupling also thread locked). Install (1) solid body centralizer on float collar joint prior to bucking on float collar. • Install a solid body centralizer on landing collar joint. Leave centralizers free floating so that they can slide up and down the joint. • Ensure proper operation of float shoe and float collar prior to running in the hole. 16.4. Continue running 5-1/2"prod casing. • Fill casing while running using fill up line on rig floor. • Use "Best 0 Life 2000"thread compound. Dope pin end only w/paint brush. • Install solid body centralizers on every joint to 5,400 MD. Every other joint to 3800'. None above 3800'. Leave the centralizers free floating. • Utilize a collar clamp until weight is sufficient to keep slips set properly. 5-1/2" DQX M/U torques Casing OD Optimum Yield Torque 5.5" 10,100 ft-lbs 16,100 ft-lbs Page 30 Version 1 July, 2014 Paxton#8 Drilling& Completion Procedure Hilcorp Energy Company 16.5. M/U casing hanger joint to string. Casing hanger joint will come out to the rig with the landing joint already M/U. Position the shoe approx 10—20' above TD. Strap the landing joint while it is on the deck and mark the joint at (1) ft intervals to use as a reference when landing the hanger. 16.6. Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. 16.7. R/U circulating equipment and circulate the greater of 1 x casing capacity or 1 x OH volume. Elevate the hanger offseat (slightly) to avoid plugging the flutes. Stage up pump slowly and monitor losses closely while circulating. 16.8. After circulating, lower string and land hanger in wellhead again. Page 31 Version 1 July,2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 17.0 Cement 5-1/2" Production Casing 17.1. Hold a pre job safety meeting over the upcoming cmt operations. Make room in pits for volume gained during cement job. Ensure adequate cement displacement volume available as well. Ensure mud& water can be delivered to the cmt unit at acceptable rates. • How to handle cmt returns at surface, regardless of how unlikely it is that this should occur. • Which pump will be utilized for displacement, and how fluid will be fed to displacement pump. • Positions and expectations of personnel involved with the cmt operation. • Document efficiency of all possible displacement pumps prior to cement job. 17.2. Attempt to reciprocate the casing during cmt operations. 17.3. Pump 5 bbls 10 ppg SealBond spacer. 17.4. Test surface cmt lines to 4500 psi. 17.5. Pump remaining 15 bbls 12 ppg SealBond spacer. 17.6. Mix and pump lead and tail cmt per below recipe. Ensure cmt is pumped at designed weight. Job is designed to pump 30% OH excess. Section: Calculation: (VolS) Vol (ft3) 9-5/8" x 5-1/2" Overlap(Lead): 500' x 0.046= 23 129 8-1/2"OH x 5-1/2" Liner(Lead): (7,000—3,600')x 0.0408 x 1.3 = 180.3 1012 ft3 8-1/2"OH x 5-1/2" Liner(Tail): (10,000' —7,000') x 0.0408 x1.3 = 159 893 ft3 Shoe Track(Tail): 90' x 0.023 = 2.1 12 Total Volume (Lead): 180.3 1012 55('‘x Total Volume (Tail): 161.1 904.5 5 x b V- 2 Li a ec) Page 32 Version 1 July,2014 Paxton #8 11 Drilling& Completion Procedure Hilcorp Energy Company Lead Slurry (7000' to 3600') Tail Slurry (10,000' to 7,000' MD) System Extended Conventional Density 13.5 lb/gal 15.2 lb/gal Yield 1.82 ft3/sk ✓ 1.25 ft3/sk ,i Mixed Water 9.21 gal/sk 5.7 gal/sk Mixed Fluid 9.22 gal/sk 5.71 gal/sk Code Description Concentration Code Description Concentration Class G Cement 94 lb/sk Type1 Cement 94 lb/sk WBWOB WBWOB BA-90 Low den. additive 10% bwoc Static Free De-Foamer 0.005 lbs/sk BA-56 Gas Migration 2.5% bwoc R-3 Retarder 0.9% bwoc CD-32 Dispersant 0.4% bwoc CD-32 Dispersant 0.6% bwoc Additives Free water ASA-301 control 0.1% bwoc FP-6L De-Foamer 1 gal/100 sk FP-6L De-Foamer 1 gal/100 sk BA-10A Bonding 1% bwoc agent a Metasillicate Extender 0.5% bwoc Metalsa illicate Extender 0.5% bwoc Static Free De-Foamer 0.005 lbs/sk 17.7. Drop DP dart and displace with 6% KCl. 9800' x .023 =225.4 bbls 17.8. Do not overdisplace by more than 1/2 shoe track. Shoe track volume is 1.7 bbls. 17.9. Bleed pressure to zero to check float equipment. 17.10. Pressure up again to 3500 psi and hold for 30 min to t st production bore. Page 33 Version 1 July,2014 n . Paxton #8 Drilling& Completion Procedure Hilcorp HOED Company Ensure to report the following on wellez: • Pre flush type,volume(bbls)&weight(ppg) • Cement slurry type, lead or tail,volume&weight • Pump rate while mixing, bpm, note any shutdown during mixing operations with a duration i. Pump rate while displacing,note whether displacement by pump truck or mud pumps, weight&type of displacing fluid j. Note if casing is reciprocated or rotated during the job k. Calculated volume of displacement, actual displacement volume,whether plug bumped&bump pressure, do floats hold 1. Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure m. Note if pre flush or cement returns at surface&volume n. Note time cement in place o. Note calculated top of cement p. Add any comments which would describe the success or problems during the cement job Sendfinal "As-Run" casing tally & casing and cement report to lkeller@hilcorp.com. This will be included with the EOW documentation that goes to the AOGCC. Page 34 Version 1 July,2014 Paxton#8 Drilling& Completion Procedure Hilcorp Energy Company 18.0 RDMO 18.1 N/D BOP, install tubinghead. Install dummy hanger in tubing head and N/U Temp abandonment cap. Ensure dummy hanger has a 4" ID to allow CBL to be run rigless. 18.2 RDMO Saxon rig#147 18.3 After rig has departed, run CBL to determine TOC behind 5-1/2"production casing. Send the CBL to the AOGCC for review. 19.0 Perf and Frac 19.1 A separate sundry will be submitted to the AOGCC that will cover the below operations: • R/U workover rig • Run production tubing/pkr/ CIM & SCSSV. • Perforating and flowback. • And hydraulic fracturing or other stimulation that may be necessary to produce the well v commercially. 4 4 , Page 35 Version 1 July,2014 Paxton #8 II Drilling & Completion Procedure Hilcorp Energy Company 20.0 BOP Schematic I -y, III lie III Iii at _) II li 1 {' T3-Energy Saxon Rig 147 r.rac:76E12 11"5M T-3 Energy BOP lit iii 111111111 ' 4IhT3-Energy Model 6411i � . Manual Manual — Manual 1185' Valve Vale Valve � 111111 iii 111 ill Kill it ' i'i e�. j' - ei ' - Choke Line ~T'* ; "f I -iiii „: riip Lr i!1 i!I lit 'JIM- ' _ '� 3-Energy Model 64111 oil t_ - log .2 _RI . . : . . ._ . . .... Grade Lee 1_I 4111,14,1 1 IS Spacer spool . 9 11 5M X 11 5M In]airlift b ID Seaboard-MBS system „:oIs-I. 16%3MX115M Ips] l • • ..am—If 11.U%r r 1 Jr .,40, t t "z) ,1 ) ;. Q-5t8" lE Page 36 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 21.0 Wellhead Schematic Ninilchik Unit New drill system-Seaboard Saxon Rig 147 16 x95/8 x51/2 O 44 �.,. 1.111 a r®a a.i JI Eximumb Tubing head,Sea boa rd-S8, 11 SM X 7 1/16 5M, w/2-2 1/16 5M SSO, _ • Za, • i 7"P seal bottom : E �� 41 la 1- sol IN.: - :rr. ra Casing spool,Seaboard-S8, IIFi163/4 3M X 11 5M, ' '; ! 41C', = s f; w/2-2 1/16 5M SSO, i (.: ��i 1• 9 5/8 P seal bottom - C•r BOO i/ .1, - r ....- O ■ aiG7 ' • ■'! Starting head,Seaboard, 16%3M X16"SOW BTM, - w/2-2 1/16 5M SSO i; C�'•o 1.i 16" 9 5/8" 5 y:" Page 37 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 22.0 Days Vs Depth Days Vs Depth 0 Paxton#5 -Falls Creek#5 2000 4000 r t v 6000 a ai v 8000 10000 12000 0 5 10 15 20 25 30 35 40 Days Page 38 Version 1 July, 2014 Paxton #8 11 Drilling & Completion Procedure Hilcorp Energy Company 23.0 Formation Tops ANTICIPATED FORMATION TOPS&GEOHAZARDS EXPECTED Intersection Points TOP TOP NAME FLUID MD(FT} TVD(FT) TVDSS(FT) Est.Pressure X Y +/- Surface Loc ' 206350' 2230486 Beluga 50 GAS 2394 2072 -1.902 ' 891 10 Beluga 135 GAS 4080 3.531 -3.361 ' 1518 10 Top Tyonek GAS 4240 3,669 -3,499 ' 1578 Itiiiiiiii T-12 GAS ' 5480 4,743 -4,573 ' 2039 T-65 GAS V 7573 6,554 -6,384 ' 2818 207117.3 2234145.9 20, 1-90 GAS 8079 7,011 -6,841 ' 3015 1-140 GAS 8758 7,624 -7,454 ' 3278 r r Total Depth -7,800 207369.9 2234777.3 100 =Primary Objective =Secondary Objective TARGET RADIUS 100 FT Page 39 Version 1 July, 2014 Paxton#8 Drilling & Completion Procedure Hileorp Energy Company 24.0 Anticipated Drilling Hazards 12-1/4" Hole Section: Lost Circulation: Ensure adequate amounts of LCM are available. Safe-carb 10, 20, 40, 250, & 750. Ensure G-seal, Pecan nut plug, and Mix II are also available for more severe lost returns incidents. Monitor fluid volumes to detect any early signs of lost circulation. For minor seepage losses, consider adding small amounts of Safe-carb 10 & 20 to the active system at 1 —2 ppb. Hole Cleaning: Maintain rheology w/gel and gel extender. Sweep hole with gel or flowzan sweeps as necessary. Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. Maintain YP btwn 25 —45 to optimize hole cleaning and control ECD. Wellbore stability: Lithology through this zone is a composite of pebble conglomerate and sand in the upper intervals with intermittent clay matrix. Carbonaceous material and coal may be noted. Gravel sizes that are larger than normal can cause hole-cleaning problems. If encountered, be prepared to increase the viscosity. Excessive quantities of gravel and sand may indicate wellbore instability. Increase properties up to a YP of—50 -—60 lbs/100ft2 to combat this issue. Maintain low flow rates for the intial 200' of drilling to reduce the likelihood of washing out the conductor shoe. To help insure good cement to surface after running the casing, condition the mud to a YP of 25 —30 prior to cement operations. Do not lower the YP beyond 25 to avoid trouble with sands that may be found on this well. Have Desco DF, SAPP, and water on hand to ensure the desired rheologies can be achieved. H2S: H2S is not present in this hole section. No abnormal pressures or temperatures are present in this hole section. 1/ Page 40 Version 1 Jul 2014 Y� Paxton#8 II Drilling& Completion Procedure Hilcorp Energy Company 8-1/2" Hole Section: Lost Circulation: u Ensure adequate amounts of LCM are available. Safe-carb 10, 20, 40, 250, & 750. Ensure G-seal, Pecan nut plug, and Mix II are also available for more severe lost returns incidents. Monitor fluid volumes to detect any early signs of lost circulation. For minor seepage losses, consider adding small amounts of Safe-carb 10 & 20 to the active system at 1 —2 ppb. Hole Cleaning: Maintain rheology w/flowzan. Sweep hole w/20 bbls hi-vis pills as necessary. Optimize solids control equipment to maintain density and minimize sand content. Maintain YP btwn 20 - 30 to optimize hole cleaning and control ECD. Wellbore stability: Maintain 1ppb total of PolyPac Supreme UL to maintain a thin/strong wall cake and keep HTHP filtrate below 9 ml/30 min. Maintain MW as necessary using additions of Barite. Maintain 6 ppb EMI-2009 for shale/clay inhibition. Maintain 4 ppb Asphasol Supreme & 3 ppb Sack Black for Shale/Coal stabilizer. Maintain 6% KC1 in system for shale inhibition. Coal Drilling: The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The need for good planning and drilling practices is also emphasized as a key component for success. • Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. • Use asphalt-type additives to further stabilize coal seams (Asphasol Supreme, Sack Black). • Increase fluid density as required to control a"running coal". • Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb Asphasol Supreme pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss. H2S: H2S is not present in this hole section. No abnormal temperatures are present in this hole section. ,/ Page 41 Version 1 July, 2014 Paxton#8 II Drilling & Completion Procedure Hilcorp Energy Company 25.0 Saxon Rig 147 Layout 123'-7" 36'-0" - 55'-6" 30'-0" - 1=i w pRE-4Otr TANK(TOTAL VOL 396 66LS% � �I ''j._ P:11 —,1 - --u ;�H =.# •u€ ukilkill nml t III IIIII 11111111111 II it!lo PUMP 12 I- . 1" �1.1 111 IIiIINMpIM) •r I is o r1111i111i1 1:7I , �a . III IIIIII°11911111"1 mrfX741 RlFf+ r .},M.1, ■ _lib= =. II, _ ,.:1 _ �I .�: 1nI1 a111€�11u1 r1 �I.. 1 - 1,1,�,� .'1 M4�2 5° 111111111111111111- rXL"" 11uQ PUMP t I ari .- 111 h _ 111111111�11'l11i1k •131 p u iiclitm ion i■ �,s a, I I 9 .GllII1 11 11111..__.._S r 11111111111■ ... . .. . .. 11?!-°,.. . .. ,, . ,�,�V 1111111111111111111111111111111111111111111111111111111111111111111I1111111111111111111111 Illlllllll111mu rmumml P.1 IIIIIIlIluIflI lI1111111111111111IIII1I1 ___1N ':E11111IIIIIIIIIIl1111111111111111III IIIIIIIIIIIIIIIIIII1111111111IIIIIIIIIIIIIIII111111IIIIIIIIIIIIIIIIIIIIIIIIIImuillu1a:111`1!'111111111111 lI1I1111IIIIIII111I1i11'J'" `w"""""'"p'®'"'�'IIIII 11NILfII11111111111IIIl11111111I11111111IIII111I1111i11nnu1rl"num"' ' =-= 11► IIIIIp11111N1nga ,.... "NE Iugl 1 v IPSTR+ICNRP C I'1. ,._f��.. �1- 11...._ . i IIIIII :Iiinislervel. _ 1--- Ell IIIIIIIIIIIIIIIIIIIIlIIlhlIIlII11lIIIIIIIIIIIIIIIIIIIIIIIIIIIII ii�uunul to %j1111NIflIII M�!._------------ I" � __� I�IuurmluulurII I illrliion m IIII11I1111III1111111IIII1li1, 11111111[1111111 1? 111111111111111111111111111111111111111111111111111111111111111IIninimmaIi illVlI u udi11111111I1111111111N11111111 >II11111111II lc 711.11.111a1-77..r 111111.:111. 111111r111 I!��! uu uuw1l num1 i .l = ! IIIIIIIII fIIlim 1:` +, I1=I• • 11I111111111I1 um1qq — ( I■ ■ ,..uunui ennui�1I 1W- :ikg.-milIIIL_ f■ renew t'iENEQATC.Ir±�ilinS 1)QfiOlSf/*IER ?ANx,JTOq.ROgM 53'-0" 45'-0" 85'-0" 85'--5" 170'-4 •i Page 42 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 26.0 FIT Procedure Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Procedure for FIT: 1. Drill 20'of new formation below the casing shoe (this does not include rat hole below the shoe). 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer(ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drill pipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. Page 43 Version 1 July,2014 Paxton #8 ......40.. !,0:41.1 ,,,, ..s:ro.ut ,, ;ptiDrilling & Completion Procedure Hilcorp Energy Company 27.0 Choke Manifold Schematic 4 g 1 I 'N't 'It7. 14•3,--';:si'15 .... i'' , k, --1 t rt, N t-,.. idllIMMI =, If 111 lamp g! V".•,;:s.1.1.. 111! ..,...4sit - • win gia.,,,.....,. , I up .. . -. i? 4111111101111 tt e*. ..• • t Igor, 8 P ,a• o u._ t3 _ ..,..s4.a. 1 .1 iWki.--71 11,1L-72' vt,•,,,k .)0,,... ' • p d.. e. . ,,,:fi• 0 • •,Perai _ Paoli - -ii.s.• A (14 t'.. mdmimi ..x. 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P MINIIIIIIII e ; - 1 m i -,. it 111111111111111 e ,gial i )11 ' 1 „-i:41,1 - i l414:4 ali ; it.>"•••.L'P* N r 1 ii '•L'''''''' i'l P .4 7 P ri ;ay_etr, I' ,11 t 1• : I Page 44 Version 1 July, 2014 Paxton #8 11 Drilling & Completion Procedure Hilcorp Energy Company 28.0 Casing Design Information Calculation&Casing Design Factors DATE:7/14/2014 WELL: Paxton#8 DESIGN BY:Luke Keller Design Criteria: Hole Size 12-1,4" Mud Density: 8.8 ppg Hole Size 8-1?2" Mud Density: 9.5 ppg Hole Size Mud Density: Drilling Mode MASP: 2490 psi(see attached MASP determination&calculation) MASP: Production Mode MASP: 2857 psi(see attached MASP determination&calculation) Collapse Calculation: Section Calculation 1 Normal gradient external stress(0.494 psi.'ft)and the casing evacuated for the internal stress Casing Section Calculation/Specification 1 2 3 4 Casing OD 9-518' 5-112' Top(MD) 0 0 Top(TVD) 0 0 Bottom (MD) 3.600 10.000 Bottom(TVD) 3.013 8.657 Length 3.600 10.000 Weight(ppf) 40 17 Grade L-80 P-110 Connection BTC DCX Weight w/o Bouyancy Factor(lbs) 144,000 170,000 Tension at Top of Section(lbs) 144,000 170,000 Min strength Tension(1000 lbs) 916 546 Worst Case Safety Factor(Tension) 6.36 3.21 Collapse Pressure at bottom (Psi) 1.488 4.277 Collapse Resistance wio tension(Psi) 3.090 7.480 Worst Case Safety Factor(Collapse) 2.08 1.75 MASP(psis_ 2.490 2.857 Minimum Yield(psi) 5.750 10.640 Worst case safety factor(Burst) 2.31 3.72 Page 45 Version 1 July, 2014 Paxton#8 iniDrilling & Completion Procedure Hilcorp Energy Company 29.0 8-1/2" Hole Section MASP II Maximum Anticipated Surface Pressure Calculation 8-1/2"Hole Section 11i1cor Paxton P8 Ninilchik Unit MD TVG Planned Top: 3600 3013 Planned TD: 10000 8657 Anticipated Formations and Pressures: Formation TVD Est Pressure Oil/Gas/'Wet PPG Grad Beluga 50 2,072 i 891 GAS 8.3 0.430 Beluga 135 3,531 1518 GAS 8.3 0.430 TopTyonek 3,669 1578 GAS 8.3 0.430 1-12 4,743 2039 GAS 8.3 0.430 T-65 6,554 2818 GAS 8 3 0.430 T-90 7,011 3015 GAS 8 3 0.430 1-140 7,624 3278 GAS 8.3 0.430 TO Offset Well Mud Densities Well MW range Top(TVD) Bottam(TVD) Date Falls Creek#1 11.6-13.1 3,500 10,000 1960 Falls Creek#2 10.5-11 3,500 6,300 1965 Falls Creek#3 9.4-9.5 3,500 8,400 2003 Falls Creek#4 9-9.5 3,500 6,000 2004 Falls Creek#5 9.5-9.7 3,520 9,715 2014 Corea Creek#1 9.5-10.9 3,500 9,000 1936 Frances#1 9.5-9.8 3.500 10,030 2013 Paxton#1 9.2-9.4 3,600 8,000 2034 Paxton 02 9.2-9.4 1 3:60 9,500 2008 Assumptions: 1. Fracture gradient at shoe is estimated at 0.936 psi/ft based on field test data. 2. Maximum planned mud density for the 8-1/2"hole section is 9.5 ppg. 3. Calculations assume"Unknown"reservoir contains 100%gas(worst case). 4. Calculations assume worst case event is 2/3 evacuation of wellbore to gas. Remaining 1/3 volume in wellbore remains drilling fluid density. Fracture Pressure at 9-5/8"shoe considering a full column of gas from shoe to surface: 3013(ft)x 0.936(psi/ft)= 2820 ps}/ 2820(psi)-[0.1(psi/ft)'33013(ft){= 2490 psi MASP from pore pressure(unknown gas sand at TD,at 8.3 ppg,encountered ile.dril 8,657(ft)x 0.43(psi/ft)= 3722 psi 3722(psi)-]0.1(psi/ft)•8,657(ft)]. 2857 psi Summary: 1. MASP white drilling 8-1/2"production hole is governed by fracture gradient at 9-5/8"casing shoe. Page 46 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 30.0 Spider Plot (NAD 27) (Governmental Sections) S . Legend --_-._..__-- • Paxton It SHL P.xlDN AHL V f Paxtryi a TPH 1 1 410 DIONt .r..,Paxtrn e.B-4•41. 1 • 1 • Other Surface Hale Lccat.an 1 I • Other @elwm Wsk Leaalen 1 PATRON 7 BHL — ..Well Paths I f r ]KP@ Parcels 1 Q01 am!Gas Lilt!Bata-elan. I $ ADL35924 1 1 1 ; [Paxton S E3HL t t / 1 f , 11 , t t / Oaj1 / T�1 @HL I I / t` 11 , '1 ADL3843 //s/'�f 1 11 1 II , 1 1 t.: t 11 • t 0061505 • 11 1 '// S001 5014W NINILCIAIK UNIT / , 7 1 / 11 t Paxton S TPH. / ./ '1 1 , • R6.x7QN A§' / 1 1 1 I 1 / / e /r 1 11 1 1 , r 11 I • t. / r INll: ' 1 I / 4W1E 7 61,1L • 1 1 `: • If. 1 `.j : 1 ,� :--. S001 S013W / \ 1.q..X 3 @HL / 1% 1 r r / 1 ' '" I ./ t3 ar& t j --•. r ADL384372 tPaxton S SHLI 03 I I AM&s er ../..._____I _ _ , ..ttli iiir ilk' 411.--41111talkair.wt. _ . t , �, ,/W ii 14.. 1 1 l 11 D 1.000 Z 000 Paxton 8 Feet Iliicerr. I..4..IJA: Alaska Stale Plane Zone•,NAO 7 r Map Da6e:71142014 Page 47 Version 1 July, 2014 Paxton #8 Drilling & Completion Procedure Hilcorp Energy Company 31.0 Surface Plat (As Staked) (NAD 27) 1,x NOTES -�' 't,�,Y t� f fl4@t30F ELEt^hTt4xfi t3 MI6 Nt7MlN1EtIT5Cet Ft??TGSdi AT OLE POE. 124.YL 1Lr STENIINC rIYA-WAY THE ELEVATION OF 6@l NEM 17 FEET PPxT�.t+J EFEr1_ER ESTATE t t .n T+�;+ice 1�IMLafiITlt,GDOR4NA7E'p MR ALASKA STATE F1.A%r; r:rr LO21 spc.13 NV 3.13 ECNE4c—¢�a:st MCI TEPA411W Br'ANNIE OFLSSOLUTION FROM Tot S.R t,I W S N.AK 0683 SASE 6TA-Tp:Kr3'TlM;p HDAlti+I W`^?AM F160E0.53'FAO'13NGt PG 14:41ER REGO{1E04G *omit cmnr,1 nD.unI ,x9117 CN MCI SSt CGC?'ALYIIJ.GPn t 3rY TR1C1mATTO £Ir2M E7525iT;T511 E:784l1F}]AEU ELEY`EiO TO FEET _ a+a:s tea E.LtT on 01 7 2pN:HTMFAST GF'Po1ER@EG 14GOOAGMTE@DETETiMNED FADMO#OT 1 t Supi,Et It tO 1F 3G£KEGPIKu FLY 9EG"IIClM CpiuEk fitO04EfalO'] -Q.r�w I Ii PRC7TRAITTO WC:11 ,1 CpRN'R�W'OS NOT Lori] 1Ity! 71r,CAp6r;N VE1,*_AIr 6.D I USED TO CONVEAT 14,0431 TO MME? NORTH II . � 5C7 Ec./ I f 1. 1:x;. 1.. 'eet �' f 7 , ,, .....flitit. , / / ^.,i / 1 ' 'r 11- '''''. .I' *x49111 :• . r, / I /r usemiweLArr ,t /0 • •44 ,,, /'''. 7 i it -, '--)1 / xd" r�` + , , w old ao ��^� fr 4 7k .� >ad ez,_,...,, est , ,./ , .4 .."'� '-4 g'� ao• / J f A • Ir $ / 7.:04;./„ . ,": / }if I 6/n ' // ...._7, r . ✓✓ „,,...." ..40/ //0 Ill f j } (i 'r 1,i RAI<TON NO.8 WELL / fI / AS-STAKED - �' Ji _ ;r ,r 1. -,'' ONt8WELL �,� -2{ { + \` - ,' -STAKED r i ��00 ,'I 7�,/1 D27 ASP ZONE 4 f, fr —_, : , / j : 2230486 1 1 ' / • " - /7 - 106350 1 `: LAT N60`0644.610" c r , '1 1, , r' LON: W151 36'31.971` i y ELEV./.148.3*NGVD29 -- ' =SECTION 13 TIS.R14W.AK , r t 2075'PEL.6L6'ENL PAXTON #8 WELL AS-STAKED SURFACE LOCATION (NAD27) lit LOCATION:SECTION 13, TOWNSHIP 1 SOU11I, ETIGINEENINii-7ESTINC;11,6 RANGE 14 WEST,SEWARD MERIDIAN ALASKA 11 SURVEYING-MAPPINGE IA,,tt p.4lu.>n u.Ll r P.O.BOX 468 SOLD©TNA,AK.99669JOB NDWO143003 REV.0 VOICE:(907)283-b21 B FAX'(903)2833265 Cwlelitllao Yee 141W 61 tivCLMIELXi.CQh1 143093 AS-TAKED Date:July 10^2014 FIGURE: 1 Page 48 Version 1 July. 2014 Paxton#8 Drilling& Completion Procedure Hilcorp Energy Company 32.0 Offset MW vs TVD Chart Paxton#8 Offset Wells 0 , — 4 1 ' 10#70 Paxton#1 till', — Paxton#2 Vw 2000 ` -- Falls Creek#3 - -Falls Creek#4 30170 Frances#1 P. Susan Dionne 3 4000 -Falls Creek#5 50(70 L.-„. r 6000 Z. 0 7000 1 300) f 7 9000 , 10000 - 11000 . 127700 — \ y i 13000 14000 - 8 9 10 11 12 13 14 15 Mud Weight(PPG) Page 49 Version 1 July, 2014 Hilcorp Energy Company Ninilchik Unit ), Paxton Ili 1; Paxton #8 Paxton #8 6 E. 1 1 Plan: Paxton #8 wp2a i d Standard Proposal Report 11 July, 2014 - / - ---1.1 HALLIBURTON Sperry Drilling Services gl III I[I -1200 "''°°`' gy Company Project: Ninilchik Unit HALLIBURTON Calculation Method: Minimum Curvature Site: Paxton Error System: ISCWSA - Scan Method: Closest Approach 3D Well: Paxton#8 Sperry Drilling Error Surface: Elliptical Conic Wellbore: Paxton#8 -600- Warning Method: Error Ratio Paxton#8 wp2a • 0- II Hilcorp _ Qbo 600- 5° CASING DETAILS 10a 0' TVD TVDSS MD Size Name V 3013.41 2846.91 3600.00 9-5/8 9 5/8"x 12 1/4" 1200 30° 0 8657.66 8491.16 10000.00 5-1/2 5 1/2"x 8 1/2" 00 WELL DETAILS: Paxton#8 O 1800- Ground Level: 148.00 - +N/-5 +E/-W Northing Easting Latittude Longitude Slot Beluga 50- - - - rL�00 0.00 0.00 2230486.00 206350.00 60.09572508 -151.60888091 2400- 43000 SURVEY PROGRAM O Date:2014-07-09T00:00:00 Validated:Yes Version: - 43O 'b Depth From Depth To Survey/Plan Tool 3000- --� 18.50 3600.00 Paxton#8 wp2a(Paxton#8) MWD+SC+sag 9 5/8"x 12 1/4" 0.000 3600.00 10000.00 Paxton#8 wp2a(Paxton#8) MWD+SC+sag --Beluga 135- _ - _ - _ - _ - _ 0 3600-_ _ _ _ - ,50 c Top Tyonek- FORMATION TOP DETAILS n _ --- 000 TVDPatIiVDssPath MDPath Formation o Paxton #8 Srfc Tgt1 5 2068.50 1902.00 2358.74 Beluga 50 0 4200 3527.50 3361.00 4275.32 Beluga 135 C\J 090 3665.50 3499.00 4456.60 Top Tyonek 4739.50 4573.00 5845.35 T-12 t - 6550.50 6384.00 7818.51 T-65 o- _ _ _ _ _ _ _ _ _ _ _ _ _ 00 7007.50 6841.00 8291.63 T-90 4800- T 12 Co, 7620.50 7454.00 8926.25 T-140 3 To C-) g0 m %0b0 > 5400- 20° a) - I` --- 1p00 6000- Paxton#8 Int Tgt2 - 15p0 6600-- T-65- - - - - - - - - - - - - - - - - - - - - 8000 T-90 - - - - - - - - - - - - - - - 15° 7200- 85p0 gp00 7800- Paxton#8 BHL Tgt3 95p0 8400- '10000 5 1/2"x 8 1/2" ', 9000-1 Paxton#8 wp2a - 9600- - REFERENCE INFORMATION - Co-ordinate(N/E)Reference: Well Paxton#8,True North Vertical(TVD)Reference: Prelim @ 166.50usft 10200- Measured Depth Reference: Prelim @ 166.50usft Calculation Method: Minimum Curvature i i i i I i i i i I i i i i i i i i i i i i i I i i i i i I I I I I I I i i i i i i i i i i i I i I i i i I i i i i i i i i i i i i i i i -600 0 600 1200 1800 2400 3000 3600 4200 4800 5400 6000 6600 7200 7800 Vertical Section at 15.02°(1200 usft/in) CASING DETAILS HALLIBURTON flHIlCOup TVD TVDSS MD Size Name 3013.41 2846.91 3600.00 9-5/8 9 5/8"x 12 1/4" Sperry IJrillirtg 8657.66 8491.16 10000.00 5-1/2 51/2"x81/2" - Project:Ninilchik Unit COMPANY DETAILS: Hilcorp Energy Company 4600- Site: Paxton Calculation Method: Minimum Curvature Well: Paxton#8 Error System: o Wellbore: Paxton#8 Paxton#8 wp2a C Scan Method: Closeestst Approach 3D 4400- Paxton#8 wp2a 5 1/2"x 8 1/2" Error Surface: Elliptical Conic Warning Method: Error Ratio P: 4200= Paxton#8 BHL Tgt3 �Os� 000 4000- 7.500 3800- 7000 6s00 3600_ Paxton#8 Int Tgt2 6 000 3400- 53-00 3200- 5000 3000- 2800- 4S00 2600-] 4000 2400 - Paxton#8 Srfc Tgtl - oo `. 2200- 3500 0 2000- 1800- 0 o - �' 9 5/8"x 12 1/4"'- '3000 1600- REFERENCE INFORMATION 1400- Co-ordinate(N/E)Reference: Well Paxton#8,True North - Vertical(TVD)Reference: Prelim @ 166.50usft 1200- 2500 Measured Depth Reference: Prelim rod 166.50usft Calculation Method: Minimum Curvature 1000- = WELL DETAILS: Paxton#8 Ground 800- 2000 +NI-S +E/-W Northing Eastngevel. 1Lattit de Longitude Slot 0.00 0.00 2230486.00 206350.00 60.09572508 -151.60888091 600 SURVEY PROGRAM 400- 1500 Date:2014-07-09T00:00:00 Validated:Yes Version: 200- Depth From Depth To Survey/Plan Tool _ f, 18.50 3600.00 Paxton#8 wp2a(Paxton#8) MWD+SC+sag I,•�1000 3600.00 10000.00 Paxton#8 wp2a(Paxton#8) MWD+SC+sag H 00 SECTION DETAILS -200- Sec MD Inc Azi TVD TVDSS +NI-S +E/-W Northing Easting DLeg TFace VSec Target 1 18.50 0.00 0.00 18.50 -148.00 0.00 0.00 2230486.00 206350.00 0.00 0.00 0.00 2 475.00 0.00 0.00 475.00 308.50 0.00 0.00 2230486.00 206350.00 0.00 0.00 0.00 3 1485.63 40.43 8.77 1403.84 1237.34 337.98 52.17 2230822.61 206410.38 4.00 8.77 339.95 4 4500.38 40.43 8.77 3698.83 3532.33 2270.03 350.39 2232746.82 206755.54 0.00 0.00 2283.28 Paxton#8 Srfc Tgt1 5 4980.43 39.13 23.67 4068.60 3902.10 2563.28 435.15 2233037.92 206847.41 2.00 103.42 2588.48 _600- 6 5997.38 39.13 23.67 4857.43 4690.93 3151.11 692.82 2233619.30 207119.32 0.00 0.00 3223.00 7 6802.27 15.00 21.71 5568.88 5402.38 3485.46 835.44 2233950.09 207270.03 3.00 -178.76 3582.89 Paxton#8 Int Tgt2 8 9252.70 15.00 21.71 7935.82 7769.32 4074.70 1070.04 2234533.43 207518.91 0.00 0.00 4212.79 Paxton#8 BHL Tgt3 9 10000 00 15 00 21 71 8657.66 8491.16 4254 39 1141 59 2234711 34 207594 81 0.00 0 00 4404 89 -800 ( III ( IIIIIIII FII ( 1111 ( III ( III IIIIJIIII ( IIIIIIII ( III IIF I IIIIIIII ILII II III II II IIIIIIII IIIIFII III II -800 -600 -400 -200 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400 West(-)/East(+)(600 usft/in) Project: Ninilchik Unit HALLIBURTON Site: Paxton ��j j,�'prj) Well: Paxton#8 Sperry Drilling Paxton Wellbore: Paxton#8 Paxton#8 wp2a Paxton#3 Surveys Paxton#7 wp2a 4800 4600 Paxton#8 wp2a Paxton#4 Surveys 4400 __ 1/2"x81/2" 4200 Paxton#8 BHL Tgt3 i 4000 3800 3600 Paxton#8 Int Tgt2 3400 3200 3000 2800 2600 m 0 S 2400 'axton#1 Pax. #8 Srfc Tgtl r 2200 0 2000 0 0 1800 _ 9 5/8"x 12 1/4" 1600 y Paxton#2 Surveys 1400 1200 1000 800- 600— 400- 200- 2/ Pax—to-n-45 WP1.0 -200— -400 iljaxwtr 16 .. -1000 -800 -600 -400 -200 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 West(-)/East(+)(600 usft/in) Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 Company: Hilcorp Energy Company TVD Reference: Prelim @ 166.50usft Project: Ninilchik Unit MD Reference: Prelim @ 166.50usft Site: Paxton North Reference: True Well: Paxton#8 Survey Calculation Method: Minimum Curvature Wellbore: Paxton#8 Design: Paxton#8 wp2a Project Ninilchik Unit Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Site Paxton Site Position: Northing: 2,230,587.12 usft Latitude: 60.09599940 From: Map Easting: 206,316.53 usft Longitude: -151.60907766 Position Uncertainty: 0.00 usft Slot Radius: 13-3/16" Grid Convergence: -1.39 ° Well Paxton#8 Well Position +N/-S 0.00 usft Northing: 2,230,486.00 usft Latitude: 60 09572508 +El-W 0.00 usft Easting: 206,350.00 usft Longitude: -151.60888091 Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: 148.00 usft Wellbore Paxton#8 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (°) (°) (nT) BGGM2013 7/8/2014 16.63 73.10 55,204 Design Paxton#8 wp2a Audit Notes: Version: Phase: PLAN Tie On Depth: 18.50 Vertical Section: Depth From(TVD) +N/-S +E/-W Direction (usft) (usft) (usft) (°) 18.50 0.00 0.00 15.02 Plan Sections Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +N/-S +E/-W Rate Rate Rate Tool Face (usft) (°) (°) (usft) usft (usft) (usft) (°/100usft) (°/100usft) (°/100usft) (°) 18.50 0.00 0.00 18.50 -148.00 0.00 0.00 0.00 0.00 0.00 0.00 475.00 0.00 0.00 475.00 308.50 0.00 0.00 0.00 0.00 0.00 0.00 1,485.63 40.43 8.77 1,403.84 1,237.34 337.98 52.17 4.00 4.00 0.87 8.77 4,500.38 40.43 8.77 3,698.83 3,532.33 2,270.03 350.39 0.00 0.00 0.00 0.00 4,980.43 39.13 23.67 4,068.60 3,902.10 2,563.28 435.15 2.00 -0.27 3.10 103.42 5,997.38 39.13 23.67 4,857.43 4,690.93 3,151.11 692.82 0.00 0.00 0.00 0.00 6,802.27 15.00 21.71 5,568.88 5,402.38 3,485.46 835.44 3.00 -3.00 -0.24 -178.76 I 9,252.70 15.00 21.71 7,935.82 7,769.32 4,074.70 1,070.04 0.00 0.00 0.00 0.00 10,000.00 15.00 21.71 8,657.66 8,491.16 4,254.39 1,141.59 0.00 0.00 0.00 0.00 7/11/2014 2:16:07PM Page 2 COMPASS 5000.1 Build 70 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 Company: Hilcorp Energy Company TVD Reference: Prelim @ 166.50usft Project: Ninilchik Unit MD Reference: Prelim @ 166.50usft Site: Paxton North Reference: True Well: Paxton#8 Survey Calculation Method: Minimum Curvature Wellbore: Paxton#8 Design: Paxton#8 wp2a Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 148.00 18.50 0.00 0.00 18.50 -148.00 0.00 0.00 2,230,486.00 206,350.00 0.00 0.00 100.00 0.00 0.00 100.00 -66.50 0.00 0.00 2,230,486.00 206,350.00 0.00 0.00 200.00 0.00 0.00 200.00 33.50 0.00 0.00 2,230,486.00 206,350.00 0.00 0.00 300.00 0.00 0.00 300.00 133.50 0.00 0.00 2,230,486.00 206,350.00 0.00 0.00 400.00 0.00 0.00 400.00 233.50 0.00 0.00 2,230,486.00 206,350.00 0.00 0.00 475.00 0.00 0.00 475.00 308.50 0.00 0.00 2,230,486.00 206,350.00 0.00 0.00 500.00 1.00 8.77 500.00 333.50 0.22 0.03 2,230,486.21 206,350.04 4.00 0.22 600.00 5.00 8.77 599.84 433.34 5.39 0.83 2,230,491.37 206,350.96 4.00 5.42 700.00 9.00 8.77 699.08 532.58 17.43 2.69 2,230,503.36 206,353.11 4.00 17.53 800.00 13.00 8.77 797.22 630.72 36.28 5.60 2,230,522.14 206,356.48 4.00 36.49 900.00 17.00 8.77 893.79 727.29 61.86 9.55 2,230,547.61 206,361.05 4.00 62.22 1,000.00 21.00 8.77 988.32 821.82 94.03 14.51 2,230,579.64 206,366.80 4.00 94.57 1,100.00 25.00 8.77 1,080.36 913.86 132.63 20.47 2,230,618.10 206,373.70 4.00 133.41 1,200.00 29.00 8.77 1,169.44 1,002.94 177.49 27.40 2,230,662.77 206,381.71 4.00 178.53 1,300.00 33.00 8.77 1,255.14 1,088.64 228.38 35.25 2,230,713.46 206,390.80 4.00 229.72 1,400.00 37.00 8.77 1,337.04 1,170.54 285.06 44.00 2,230,769.90 206,400.93 4.00 286.72 1,485.63 40.43 8.77 1,403.84 1,237.34 337.98 52.17 2,230,822.61 206,410.38 4.00 339.95 1,500.00 40.43 8.77 1,414.78 1,248.28 347.19 53.59 2,230,831.78 206,412.03 0.00 349.21 1,600.00 40.43 8.77 1,490.91 1,324.41 411.27 63.48 2,230,895.61 206,423.47 0.00 413.67 1,700.00 40.43 8.77 1,567.03 1,400.53 475.36 73.37 2,230,959.43 206,434.92 0.00 478.13 1,800.00 40.43 8.77 1,643.16 1,476.66 539.45 83.27 2,231,023.26 206,446.37 0.00 542.59 1,900.00 40.43 8.77 1,719.28 1,552.78 603.53 93.16 2,231,087.09 206,457.82 0.00 607.06 2,000.00 40.43 8.77 1,795.41 1,628.91 667.62 103.05 2,231,150.91 206,469.27 0.00 671.52 2,100.00 40.43 8.77 1,871.53 1,705.03 731.71 112.94 2,231,214.74 206,480.72 0.00 735.98 2,200.00 40.43 8.77 1,947.66 1,781.16 795.79 122.83 2,231,278.57 206,492.17 0.00 800.44 2,300.00 40.43 8.77 2,023.78 1,857.28 859.88 132.73 2,231,342.39 206,503.62 0.00 864.90 2,358.74 40.43 8.77 2,068.50 1,902.00 897.52 138.54 2,231,379.88 206,510.34 0.00 902.76 Beluga 50 2,400.00 40.43 8.77 2,099.91 1,933.41 923.97 142.62 2,231,406.22 206,515.07 0.00 929.36 2,500.00 40.43 8.77 2,176.03 2,009.53 988.05 152.51 2,231,470.05 206,526.52 0.00 993.82 2,600.00 40.43 8.77 2,252.16 2,085.66 1,052.14 162.40 2,231,533.87 206,537.97 0.00 1,058.28 2,700.00 40.43 8.77 2,328.29 2,161.79 1,116.23 172.30 2,231,597.70 206,549.41 0.00 1,122.74 2,800.00 40.43 8.77 2,404.41 2,237.91 1,180.31 182.19 2,231,661.53 206,560.86 0.00 1,187.20 2,900.00 40.43 8.77 2,480.54 2,314.04 1,244.40 192.08 2,231,725.35 206,572.31 0.00 1,251.66 3,000.00 40.43 8.77 2,556.66 2,390.16 1,308.49 201.97 2,231,789.18 206,583.76 0.00 1,316.12 3,100.00 40.43 8.77 2,632.79 2,466.29 1,372.57 211.86 2,231,853.01 206,595.21 0.00 1,380.58 3,200.00 40.43 8.77 2,708.91 2,542.41 1,436.66 221.76 2,231,916.83 206,606.66 0.00 1,445.04 3,300.00 40.43 8.77 2,785.04 2,618.54 1,500.75 231.65 2,231,980.66 206,618.11 0.00 1,509.50 3,400.00 40.43 8.77 2,861.16 2,694.66 1,564.83 241.54 2,232,044.49 206,629.56 0.00 1,573.97 3,500.00 40.43 8.77 2,937.29 2,770.79 1,628.92 251.43 2,232,108.31 206,641.01 0.00 1,638.43 3,600.00 40.43 8.77 3,013.41 2,846.91 1,693.01 261.32 2,232,172.14 206,652.46 0.00 1,702.89 9 5/8"x 12 1/4" 3,700.00 40.43 8.77 3,089.54 2,923.04 1,757.09 271.22 2,232,235.97 206,663.91 0.00 1,767.35 3,800.00 40.43 8.77 3,165.66 2,999.16 1,821.18 281.11 2,232,299.79 206,675.35 0.00 1,831.81 3,900.00 40.43 8.77 3,241.79 3,075.29 1,885.26 291.00 2,232,363.62 206,686.80 0.00 1,896.27 7/11/2014 2:16:07PM Page 3 COMPASS 5000.1 Build 70 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 Company: Hilcorp Energy Company TVD Reference: Prelim @ 166.50usft Project: Ninilchik Unit MD Reference: Prelim @ 166.50usft Site: Paxton North Reference: True Well: Paxton#8 Survey Calculation Method: Minimum Curvature Wellbore: Paxton#8 Design: Paxton#8 wp2a Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 3,151.41 4,000.00 40.43 8.77 3,317.91 3,151.41 1,949.35 300.89 2,232,427.45 206,698.25 0.00 1,960.73 4,100.00 40.43 8.77 3,394.04 3,227.54 2,013.44 310.78 2,232,491.27 206,709.70 0.00 2,025.19 4,200.00 40.43 8.77 3,470.16 3,303.66 2,077.52 320.68 2,232,555.10 206,721.15 0.00 2,089.65 4,275.32 40.43 8.77 3,527.50 3,361.00 2,125.79 328.13 2,232,603.17 206,729.77 0.00 2,138.20 Beluga 135 4,300.00 40.43 8.77 3,546.29 3,379.79 2,141.61 330.57 2,232,618.93 206,732.60 0.00 2,154.11 4,400.00 40.43 8.77 3,622.41 3,455.91 2,205.70 340.46 2,232,682.75 206,744.05 0.00 2,218.57 4,456.60 40.43 8.77 3,665.50 3,499.00 2,241.97 346.06 2,232,718.88 206,750.53 0.00 2,255.06 Top Tyonek 4,500.00 40.43 8.77 3,698.54 3,532.04 2,269.78 350.35 2,232,746.58 206,755.50 0.00 2,283.03 4,500.38 40.43 8.77 3,698.83 3,532.33 2,270.03 350.39 2,232,746.82 206,755.54 0.00 2,283.28 4,600.00 40.00 11.79 3,774.91 3,608.41 2,333.30 361.86 2,232,809.79 206,768.55 2.00 2,347.36 4,700.00 39.66 14.87 3,851.71 3,685.21 2,395.61 376.62 2,232,871.73 206,784.82 2.00 2,411.36 4,800.00 39.39 17.98 3,928.85 3,762.35 2,456.64 394.60 2,232,932.30 206,804.28 2.00 2,474.97 4,900.00 39.22 21.13 4,006.24 3,839.74 2,516.31 415.79 2,232,991.44 206,826.92 2.00 2,538.10 4,980.43 39.13 23.67 4,068.60 3,902.10 2,563.28 435.15 2,233,037.92 206,847.41 2.00 2,588.48 5,000.00 39.13 23.67 4,083.78 3,917.28 2,574.59 440.11 2,233,049.11 206,852.65 0.00 2,600.69 5,100.00 39.13 23.67 4,161.35 3,994.85 2,632.39 465.45 2,233,106.28 206,879.38 0.00 2,663.08 5,200.00 39.13 23.67 4,238.91 4,072.41 2,690.20 490.78 2,233,163.45 206,906.12 0.00 2,725.48 5,300.00 39.13 23.67 4,316.48 4,149.98 2,748.00 516.12 2,233,220.62 206,932.86 0.00 2,787.87 5,400.00 39.13 23.67 4,394.05 4,227.55 2,805.80 541.46 2,233,277.79 206,959.60 0.00 2,850.26 5,500.00 39.13 23.67 4,471.62 4,305.12 2,863.61 566.80 2,233,334.96 206,986.33 0.00 2,912.66 5,600.00 39.13 23.67 4,549.19 4,382.69 2,921.41 592.14 2,233,392.12 207,013.07 0.00 2,975.05 5,700.00 39.13 23.67 4,626.75 4,460.25 2,979.21 617.47 2,233,449.29 207,039.81 0.00 3,037.45 5,800.00 39.13 23.67 4,704.32 4,537.82 3,037.01 642.81 2,233,506.46 207,066.55 0.00 3,099.84 5,845.35 39.13 23.67 4,739.50 4,573.00 3,063.23 654.30 2,233,532.39 207,078.67 0.00 3,128.14 / T-12 5,900.00 39.13 23.67 4,781.89 4,615.39 3,094.82 668.15 2,233,563.63 207,093.28 0.00 3,162.24 5,997.38 39.13 23.67 4,857.43 4,690.93 3,151.11 692.82 2,233,619.30 207,119.32 0.00 3,223.00 6,000.00 39.05 23.67 4,859.46 4,692.96 3,152.62 693.49 2,233,620.80 207,120.02 3.00 3,224.63 6,100.00 36.06 23.56 4,938.73 4,772.23 3,208.46 717.90 2,233,676.03 207,145.79 3.00 3,284.89 6,200.00 33.06 23.43 5,021.08 4,854.58 3,260.47 740.51 2,233,727.48 207,169.66 3.00 3,340.99 6,300.00 30.06 23.28 5,106.28 4,939.78 3,308.51 761.26 2,233,775.00 207,191.57 3.00 3,392.76 6,400.00 27.06 23.10 5,194.10 5,027.60 3,352.45 780.08 2,233,818.46 207,211.45 3.00 3,440.08 6,500.00 24.06 22.88 5,284.31 5,117.81 3,392.16 796.94 2,233,857.75 207,229.27 3.00 3,482.80 6,600.00 21.06 22.60 5,376.64 5,210.14 3,427.54 811.77 2,233,892.76 207,244.96 3.00 3,520.81 6,700.00 18.06 22.23 5,470.86 5,304.36 3,458.49 824.54 2,233,923.38 207,258.48 3.00 3,554.01 6,800.00 15.07 21.72 5,566.70 5,400.20 3,484.92 835.22 2,233,949.55 207,269.80 3.00 3,582.31 6,802.27 15.00 21.71 5,568.88 5,402.38 3,485.46 835.44 2,233,950.09 207,270.03 3.00 3,582.89 6,900.00 15.00 21.71 5,663.29 5,496.79 3,508.97 844.80 2,233,973.36 207,279.96 0.00 3,608.02 7,000.00 15.00 21.71 5,759.88 5,593.38 3,533.01 854.37 2,233,997.16 207,290.12 0.00 3,633.72 7,100.00 15.00 21.71 5,856.47 5,689.97 3,557.06 863.95 2,234,020.97 207,300.27 0.00 3,659.43 7,200.00 15.00 21.71 5,953.07 5,786.57 3,581.10 873.52 2,234,044.77 207,310.43 0.00 3,685.13 7,300.00 15.00 21.71 6,049.66 5,883.16 3,605.15 883.09 2,234,068.58 207,320.59 0.00 3,710.84 7,400.00 15.00 21.71 6,146.25 5,979.75 3,629.20 892.67 2,234,092.38 207,330.74 0.00 3,736.55 7/11/2014 2:16:07PM Page 4 COMPASS 5000.1 Build 70 Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 Company: Hilcorp Energy Company TVD Reference: Prelim @ 166.50usft Project: Ninilchik Unit MD Reference: Prelim @ 166.50usft Site: Paxton North Reference: True Well: Paxton#8 Survey Calculation Method: Minimum Curvature Wellbore: Paxton#8 Design: Paxton#8 wp2a Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) (usft) (usft) 6,076.35 7,500.00 15.00 21.71 6,242.85 6,076.35 3,653.24 902.24 2,234,116.19 207,340.90 0.00 3,762.25 7,600.00 15.00 21.71 6,339.44 6,172.94 3,677.29 911.82 2,234,140.00 207,351.06 0.00 3,787.96 7,700.00 15.00 21.71 6,436.03 6,269.53 3,701.33 921.39 2,234,163.80 207,361.21 0.00 3,813.66 7,800.00 15.00 21.71 8,532.82 6,366.12 3,725.38 930.96 2,234,187.61 207,371.37 0.00 3,839.37 7,818.51 15.00 21.71 6,550.50 6,384.00 3,729.83 932.74 2,234,192.01 207,373.25 0.00 3,844.13 T-65 7,900.00 15.00 21.71 6,629.22 6,462.72 3,749.43 940.54 2,234,211.41 207,381.52 0.00 3,865.07 8,000.00 15.00 21.71 6,725.81 6,559.31 3,773.47 950.11 2,234,235.22 207,391.68 0.00 3,890.78 8,100.00 15.00 21.71 6,822.40 6,655.90 3,797.52 959.69 2,234,259.03 207,401.84 0.00 3,916.49 8,200.00 15.00 21.71 6,918.99 6,752.49 3,821.56 969.26 2,234,282.83 207,411.99 0.00 3,942.19 8,291.63 15.00 21.71 7,007.50 6,841.00 3,843.60 978.03 2,234,304.64 207,421.30 0.00 3,965.75 T-90 8,300.00 15.00 21.71 7,015.59 6,849.09 3,845.61 978.83 2,234,306.64 207,422.15 0.00 3,967.90 8,400.00 15.00 21.71 7,112.18 6,945.68 3,869.66 988.41 2,234,330.44 207,432.31 0.00 3,993.60 8,500.00 15.00 21.71 7,208.77 7,042.27 3,893.70 997.98 2,234,354.25 207,442.46 0.00 4,019.31 8,600.00 15.00 21.71 7,305.36 7,138.86 3,917.75 1,007.56 2,234,378.05 207,452.62 0.00 4,045.01 8,700.00 15.00 21.71 7,401.96 7,235.46 3,941.79 1,017.13 2,234,401.86 207,462.78 0.00 4,070.72 8,800.00 15.00 21.71 7,498.55 7,332.05 3,965.84 1,026.70 2,234,425.67 207,472.93 0.00 4,096.43 8,900.00 15.00 21.71 7,595.14 7,428.64 3,989.89 1,036.28 2,234,449.47 207,483.09 0.00 4,122.13 8,926.25 15.00 21.71 7,620.50 7,454.00 3,996.20 1,038.79 2,234,455.72 207,485.75 0.00 4,128.88 T-140 9,000.00 15.00 21.71 7,691.73 7,525.23 4,013.93 1,045.85 2,234,473.28 207,493.24 0.00 4,147.84 9,100.00 15.00 21.71 7,788.33 7,621.83 4,037.98 1,055.43 2,234,497.08 207,503.40 0.00 4,173.54 9,200.00 15.00 21.71 7,884.92 7,718.42 4,062.02 1,065.00 2,234,520.89 207,513.56 0.00 4,199.25 9,252.70 15.00 21.71 7,935.82 7,769.32 4,074.70 1,070.04 2,234,533.43 207,518.91 0.00 4,212.79 9,300.00 15.00 21.71 7,981.51 7,815.01 4,086.07 1,074.57 2,234,544.70 207,523.71 0.00 4,224.95 9,400.00 15.00 21.71 8,078.10 7,911.60 4,110.12 1,084.15 2,234,568.50 207,533.87 0.00 4,250.66 9,500.00 15.00 21.71 8,174.70 8,008.20 4,134.16 1,093.72 2,234,592.31 207,544.03 0.00 4,276.37 9,600.00 15.00 21.71 8,271.29 8,104.79 4,158.21 1,103.30 2,234,616.11 207,554.18 0.00 4,302.07 9,700.00 15.00 21.71 8,367.88 8,201.38 4,182.25 1,112.87 2,234,639.92 207,564.34 0.00 4,327.78 9,800.00 15.00 21.71 8,464.47 8,297.97 4,206.30 1,122.44 2,234,663.72 207,574.50 0.00 4,353.48 9,900.00 15.00 21.71 8,561.07 8,394.57 4,230.35 1,132.02 2,234,687.53 207,584.65 0.00 4,379.19 10,000.00 15.00 21.71 8,657.66 8,491.16 4,254.39 1,141.59 2,234,711.34 207,594.81 0.00 4,404.89 51/2"x 81/2" 7/11/2014 2:16:07PM Page 5 COMPASS 5000.1 Build 70 Halliburton I-IALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Paxton#8 Company: Hilcorp Energy Company TVD Reference: Prelim @ 166.50usft Project:_ Ninilchik Unit MD Reference: Prelim @ 166.50usft Site: Paxton North Reference: True Well: Paxton#8 Survey Calculation Method: Minimum Curvature Wellbore: Paxton#8 Design: Paxton#8 wp2a Targets Target Name -hit/miss target Dip Angle Dip Dir. TVD +N/-S +E/-W Northing Easting -Shape (°) (°) (usft) (usft) (usft) (usft) (usft) Paxton#8 Int Tgt2 0.00 0.00 5,568.88 3,485.46 835.44 2,233,950.09 207,270.03 -plan hits target center -Point Paxton#8 Srfc Tgt1 0.00 0.00 3,698.83 2,270.03 350.39 2,232,746.82 206,755.54 -plan hits target center -Point Paxton#8 BHLTgt3 0.00 0.00 7,935.82 4,074.70 1,070.04 2,234,533.43 207,518.91 -plan hits target center -Point Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name n n 3,600.00 3,013.41 9 5/8"x 12 1/4" 9-5/8 12-1/4 10,000.00 8,657.66 5 1/2"x 8 1/2" 5-1/2 8-1/2 Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (usft) (usft) Name Lithology (0) (0) 4,275.32 3,527.50 Beluga 135 0.00 4,456.60 3,665.50 Top Tyonek 0.00 7,818.51 6,550.50 T-65 0.00 5,845.35 4,739.50 1-12 0.00 8,291.63 7,007.50 T-90 0.00 8,926.25 7,620.50 T-140 0.00 2,358.74 2,068.50 Beluga 50 0.00 7/11/2014 2:16:07PM Page 6 COMPASS 5000.1 Build 70 Z 0 L ac y c CO . 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Q I. , c N L O y N a ZSM W C a 73 U CD 01 6 o V Z - J � I II [ 1111111i11111 , , L , H , rni , [ 111 IIIIIII J o CJ O r O.-, N O Lo r ry 0O Q () C O co N. c0 N 0 N N— 0 _ _ ..1 (u!/09 Z)_lope j uoileiedes < CD Davies, Stephen F (DOA) From: Luke Keller <Ikeller@hilcorp.com> Sent: Monday, July 14, 2014 4:22 PM To: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Cc: Janise Barrett;Jeff Allen; Paul Chan; Paul Mazzolini Subject: Paxton 8 Permit to Drill Attachments: Paxton 8 10-401 PTD SUBMITTED 07142014.pdf; Paxton#8 Drilling Program V1.docx; Paxton #8 wp2a Proposed Surveys.xlsm; Paxton #8 wp2a- Permit Report.pdf Guy/Steve, The attached permit to drill is being couriered to your office today. Attached is the 10-401, drilling program, and electronic directional surveys. Paxton 8 is a grass roots,Tyonek development well currently on the drilling schedule for rig#147 after the KBU 42- 06Y. We are drilling the Paxton 8 out of sequence with the Paxton 6 well due to a change in desired target locations (Paxton 6 will be drilled later this year, or possibly in to next year). We anticipate spudding Paxton 8 around Aug 15th The well design is our modified design with a long string of 5-1/2" that will have 2-7/8" production tubing run inside. The 5-1/2" casing will be cemented to 500' inside the 9-5/8" shoe. The well plan has the diverter included on the base plan per our conversation about wells on the bluff, in close proximity to roads and residential areas. Please let me know if there is anything else your office needs to process this permit to drill package. Thanks! Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907-777-8395 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. r--. TRANSMITTAL LETTER CHECKLIST WELL NAME: ,2/41/&)7 PTD: // )e-' ./r'-1 / e/ Development _Service _Exploratory Stratigraphic Test Non-Conventional .=:: D (ye,--)tk_k___( 4,.. FIELD: /L/' t /_t ,f�— POOL: Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI LATERAL The permit is for a new wellbore segment of existing well Permit (If last two digits No. , API No. 50- - - - in API number are Production should continue to be reported as a function of the original between 60-69) API number stated above. 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 Pilot Hole ( PH) and API number (50- - - - ) from records, data and logs acquired for well(name on permit). The permit is approved subject to full compliance with 20 AAC 25.055. % Approval to produce / inject is contingent upon issuance of a / Spacing Exception conservation order approving a spacing exception. (Company Name) (/ Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC must be in no greater Dry Ditch Sample than 30' sample intervals from below the permafrost or from where samples are first caught and 10'sample intervals through target zones. Please note the following special condition of this permit: Production or production testing of coal bed methane is not allowed for Non-Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application,the following well logs are Well Logging also required for this well: Requirements Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 MC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. 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J = co a`E) aa) .0 a) a) m D -o a s a`) a`) m 0 3 a) 0 o D 2 2 2 -(7 -o @ -o o c O O s ° a a0E co) a`) m .co a@) o 0 3 0 2 a _ID u-) .= 000_ a U a a z U U) U U U U a a ± 0 m co U N g a 0 (n (n 0 -; W a O N Cr) V L° (0 r M O) N Cr) V (C) CO (- Cb O) O N Cr) A U) (0 00 0) r1 Z EO N co V «) CO N- (0 CO ,- (''''l N N N N N N N N N Cr) Cr) Cr) Cr) Cr) Cr) Cr) ch,--) Cr) Cr) V V ,J- ,- V � CO 0 0 o c (+" w N N V - CD° COn QO CO O co.O 1W ca c O ' ` o J N N a) > (D E / Ws aLU aoaL Ute'0E 0) CO H a a (n W a " a u) c� Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. Paxton #8 Ninilchik Unit Kenai Peninsula Borough, Alaska August 29, 2014 – September 16, 2014 Provided by: Approved by: Dave Buthman Compiled by: Tollef Winslow T y l e r H a r r i s Distribution Date: November 5, 2014 Paxton #8 2 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW ................................................................................................3 1.1 Equipment Summary ......................................................................................................................3 1.2 Crew................................................................................................................................................3 2 GENERAL WELL DETAILS...................................................................................................................4 2.1 Well Objectives...............................................................................................................................4 2.2 Hole Data........................................................................................................................................4 2.3 Daily Activity Summary...................................................................................................................5 3 GEOLOGICAL DATA.............................................................................................................................9 3.1 Lithostratigraphy .............................................................................................................................9 3.2 Lithology Details............................................................................................................................10 3.3 Sampling Program........................................................................................................................19 4 DRILLING DATA..................................................................................................................................20 4.1 Surveys.........................................................................................................................................20 4.2 Bit Record.....................................................................................................................................24 4.3 Mud Record ..................................................................................................................................25 4.4 Drilling Progress Chart..................................................................................................................26 5 SHOW REPORTS ...............................................................................................................................27 6 DAILY REPORTS ................................................................................................................................28 Enclosures 2” / 100’ Formation Log (MD/TVD) 5” / 100’ Formation Log (MD/TVD) 2” / 100’ LWD Combo Log (MD/TVD) 2” / 100’ Drilling Dynamics Log (MD/TVD) 2” / 100’ Gas Ratio Log (MD/TVD) Final Data CD Paxton #8 3 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type /Position Total Downtime Comments Computers – Surface Logging (5) Rigwatch Server, Rigwatch Remote DML, LWD WITS, Rigwatch Remote 0 hours Ditch gas QGM gas trap; Flame ionization total gas & chromatography. 0 hours Hook Load / Weight on bit WITS from Pason 2.5 hours Pason Not Calibrated Correctly Mud Flow In Derived from Strokes/Minute and Pump Output 2.5 hours Pason Not Calibrated Correctly Mud Flow Out WITS from Pason 2.5 hours Pason Not Calibrated Correctly Pit Volumes, Pit Gain/Loss WITS from Pason 2.5 hours Pason Not Calibrated Correctly Pump Pressure WITS from Pason 2.5 hours Pason Not Calibrated Correctly Pump Stroke Counters (2) WITS from Pason 2.5 hours Pason Not Calibrated Correctly Rate of Penetration Calculated from Pason 2.5 hours Pason Not Calibrated Correctly RPM WITS from Pason 2.5 hours Pason Not Calibrated Correctly Torque WITS from Pason 2.5 hours Pason Not Calibrated Correctly WITS To/ From Pason Rigwatch Remote (HP Compaq) 0 hours 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML057 Logging Geologists Years1 Days2 Sample Catchers Years Days2 Tollef Winslow 6 25 Kirk Wallander 6 12 Tyler Harris 1 25 Lindsay Cameron 0.5 12 *1 Years experience as Mudlogger *2 Days at wellsite between rig up and rig down of logging unit. Paxton #8 4 2 GENERAL WELL DETAILS 2.1 Well Objectives Paxton #8 is a crestal, apex, well on the deep Tyonek structure. Bottom hole location was chosen as it is the highest part of the subsurface structure based on the Paxton 4 and Dionne 4 wells. The base plan is a build and hold wellbore, with a kick-off point at 500’ MD, and reaching a maximum angle of 40 deg. Operator: HILCORP ALASKA, LLC Well Name: Paxton #8 Field: Kenai Beluga Unit County: Kenai Peninsula Borough State: Alaska Company Representatives: Mike Leslie, Doug Yessak, James Lott, Shane Barber, Kevin McDowell Location: Surface Coordinates 2975’ FEL, 876’ FNL, Sec 13, T1S, R14W, SM, AK Ground ( Pad ) Elevation 148.3’ NGV29 Rotary Table Elevation 166.9’ AMSL Classification: Development - Gas API #: 50-133-20638-00-00 Permit #: 214-107 Rig Name/Type: Saxon 147 / Land / Double Spud Date August 29, 2014 Total Depth Date: September 16, 2014 Total Depth 9310’ MD / 8038 TVD / -7871 TVDSS Primary Targets Beluga 135, Tyonek, T-12, T-65, T-90, T-140 Primary Target Depths 4080’, 4240’, 5480’,7573’, 8079’, 8758’ Total Depth Formation: Tyonek Completion Status: Cased LWD-MWD Services. Halliburton/ Sperry Drilling Services Directional Drilling Halliburton/ Sperry Drilling Services Wireline Logging Services Well not wirelined. Drilling Fluids Service M.I. Swaco 2.2 Hole Data Max Depth Shoe Depth Hole Section MD (ft) TVD (ft) TD Formation MW ppg Dev oinc Csg Dia MD (ft) TVD (ft) FIT ppg 12 ¼” 8554’ 2992’ Beluga 9.9 39.35 9 5/8” 3548’ 2987’ 12.8 8 ½” 9310’ 8038’ Tyonek 11.1 7.69 5 1/2” 9269’ 7997’ NA Paxton #8 5 2.3 Daily Activity Summary 8/27/2014: Canrig began rigging up. 8/28/2014: Continued building spud mud, finished diverter line, staged drill pipe, checked off on rig acceptance check list, repositioned Kelly hose, installed bleeder and trip tank lines, installed flow paddle, rigged up derrick escape line, staged diverter warning signs, installed annular and knife valve hydro lines, changed koomy, placed pit liner under pipe rack, plugged in catwalk lighting, installed valves and plumbing in cellar, picked up TIW and dart valve, picked up subs and crossovers, worked on containment for camp generator, welded grating in pits/pump area, functioned hole fill pump and iron roughneck, inspected the derrick, adjusted the t-bar and TQ tube for hole center, installed wear bushing, ran in lockdown screws, picked up singles from cat walk, state representative and total safety on site, tested H2S and LEL alarms, functioned the annular knife valve, koomy draw down was state witnessed, picked up heavy weight drill pipe and jars from cat walk and racked back in derrick. 8/29/2014: Picked up and racked back 10 stands of HWDP and jars, slipped and cut 55’ of drill line, staged BHA on catwalk, replaced grabber box hydro hose, held pre-spud meeting, picked up BHA, made up collars, made up 8” flex and crossovers to HWDP, filled hole, tested MSD pulse sensors, spudded at 9:34 am, tagged fill at 125’, drilled to 175’, changed out saber sub and clamp, torqued up new sub, drilled to 419’, performed flow check, racked back 5 stands of HWDP, picked up remaining 8” and 6” flexes and crossovers, ran in two stands of HWDP and jars. 8/30/2014: Drilled and slid to 1818’, performed flow check off bottom. 8/31/2014: Tripped in hole from 255’ to 1818’, safety reamed last stand, circulated bottoms up with 450 units of gas, drilled from 1818’ to 2037’ WOB 18k, SPP 1730, GPM 550, RPM 65, DIFF 260, drilled 2037’ to 2317’ sliding for 68’ and rotating for 212’ drilled from 2317’ to 2565’, WOB 20, RPM 65, GPM 550, SPP 1900, TQ 7500, off bottom 5600, PU 84K, SO 58K, ROT 68K, pumped sweeps at 2050’, 50% increase in cuttings return at 2520’, drilled from 2565’ to 2720’ WOB 20k, SPP 1850, RPM 65, GPM 550, DIFF 200, TQ 8800 to 9k, at 2720’ circulated gas from 670 units to 95 units, drilled from 2720’ to 2810’ WOB 20k, SPP 1800, RPM 65, GPM 550, DIFF 250. 9/1/2014: Circulated bottoms up at 2810’ with 415 units of gas, flow checked the well, no flow, P/U 90k, S/O 60k, ROT 84k, performed wiper trip from 2810’ to 1500’, circulated at 1775’ with 401 units of gas, centrifuged mud, checked for flow, no flow, serviced rig, ran in hole on elevators from 1559’ to 2500’, ran in remaining stands, flow checked well, no flow, loaded sweep in drill string, drilled from 2810’ to 3012’ WOB 20, RPM 65, GPM 525, SPP 1850, TQ 8000, Drill from 3012’ to 3048’ WOB 20, RPM 75, GPM 550., SPP 1850, TQ 8500, off bottom TQ 6200, continued drilling, circulated gas out of hole at 6241’ from 595 units to 97 units, no connection gasses noted in last 24 hours. 9/2/2014: Drilled from 3363’ to 3423’, WOB 18, SPP 1730, RPM 80, GPM 550, TQ 8.5K-9K, circulated gas out of hole at 3423’ from 832 units to 96 units, drilled from 3423’ to 3496’, WOB 18, SPP 1890, RPM 70, GPM 550, TQ 8.2 K-8.6K, serviced rig, P/U 100, S/O 70, ROT 80, drilled from 3496’ to 3554’, slid 20’, rotated 69’, WOB 20, SPP 1850, RPM 70, GPM 540, TQ 8400, P/U 100, S/O 70, ROT 80, pumped sweep, circulated hole clean, Canrig checked TD samples, performed flow check, no flow, back reamed from 3554’ to 1310’, pumped sweep, circulated hole clean, back reamed from 1310’ to heavy weight drill pipe, performed flow check, no flow, continued to back ream to bottom hole assembly, racked back directional tools, downloaded MWD tools, serviced rig, staged bottom hole assembly, conducted pre-job safety meeting for picking up and running in hole with the bottom hole assembly. 9/3/2014: Ran in hole with the bottom hole assembly, performed a clean out run, washed down last stand, 3 feet of fill, conditioned mud and circulated, GPM 550, SPP 1280, 60 units of gas, pumped a high viscosity sweep, PU 80, SO 70, ROT 73, circulated hole clean, flow checked the well, no flow, tripped out of hole to the bottom hole assembly, racked back 6 ¾ flex collars, laid down stabs, 8” flex collars, bit sub, Paxton #8 6 and bit, cleaned rig floor, pulled wear bushings, pulled wear bushing, dummy run landing joint with Cameron representative, and marked accordingly, rigged down bails and elevators, made up full opening safety valve to casing crossover, picked up spider, casing slips, power tongs, casing running tool, made up casing running tool, adjusted TD torque, held a pre-job safety meeting with Weatherford and rig crew, ran in hole with 9 5/8 casing from float track to 3521’, torqued at 10K, circulated at 1.5 bbls/min monitored for losses. 9/4/2014: Rigged up power tongs, made up landing joint, circulated mud at 5 bpm 465 psi, monitored gas, no losses, conditioned mud to lower yield point for cement, held a safety meeting with cementers, rigged up cement head and lines, pressure tested lines, cement 9 5/8” casing, 40 bbl/spacer at 11.1 ppg, 252 bbl/lead at 12 ppg, casing P/U 135, S/O 85, pumped total of 233 bbls of 12 ppg lead cement, 54.4 bbls of 15.2 ppg tail cement, dropped top plug, took over pumping with rig pump, bumped plug, pressured to 1425 psi, held for 5 minutes, blew down cementers plumbing, flushed stack with cement retarder, drained, re- flush treated return with retarder, approximately 40 bbls spacer, 70 bbls cement to surface, rigged down Weatherford, casing running tool, power unit, service loop, elevators, etc., nippled down diverter, flow line, bleed-off line, riser, annular cleaning pits, hauled off spud mud, held safety meeting with crane crew, crane lifted BOP, nippled down DSA, cleaned flutes, from hanger to land pack-off, landed pack-off as per Cameron representative. 9/5/2014: Picked up lower rams, picked up annular, double rams, and mud cross, torqued bolts, rigged up kill and choke valves, installed catch can and flow line, held safety meeting, rigged up flowline and bell nipple, bleed-off line, hole fill line, rigged up accumulator hydraulic lines, choke line, hammered up nuts on stack, rigged up gas buster dump line, removed bridal lines and reinstalled bails on top drive, charged compensators on top drive, fixed equalizer cable in mud tanks, charged accumulator, function tested BOPs, filled with fresh water and killed the choke lines, choke manifold, BOP stack, body tested same and waited for arrival of state representative, with state representative present, total safety tested H2S and LEL alarms, tested Pason PVT, flow sensors and alarms, tested 1, 2, 3, 4, 250 low, 3500 high, 2500 on annular. 9/6/2014: Picked up 100 single joints of drill pipe from catwalk, held pre-job safety meeting, slipped and cut 40’ drill line, reset com, recalibrated hookload, serviced rig, racked back 50 stands in derrick, held pre- job safety meeting with Halliburton and rig crew, picked up bottom hole assembly, scribbled mud motor and MWD tools, downloaded tools, pre-job safety meeting on loading sources, pulse tested tools, swapped out jars, latched out heavy wall drill pipe from derrick, circulated to test MWD equipment, picked up 85 single joints of drill pipe from catwalk, all drifted and tallied, serviced rig, greased crown sheaves, traveling blocks, top drive, break linkage, drawworks, checked all fluid levels, drilled out float collar, cement, shoe, rat hole, 20’ new formation, tagged float collar at 3462’ and shoe at 3548’, observed 506 units of gas, conditioned and circulated mud for formation integrity test, F.I.T. tested to 12.8 estimated mud weight, drilled from 3574’ to 3829’ WOB 10, RPM 60, GPM 500, SPP 1600, P/U 120, S/O 70, ROT 85, TQ on 8500, TQ off 7000, ROP 150, RPM 150, DIFF 175. 9/7/2014: Drilled from 3829’ to 4204’ WOB 10, RPM 60, GPM 500, SPP 1900, P/U 125, S/O 72, ROT 94, TQ on 9500, TQ off 7500, ROP 125, MTR RPM 120, DIFF 200, drilled from 4204’ to 4465’, ROT 231, slide 30, WOP 10, RPM 60, GPM 505, TQ 8800, off TQ 7400, SPP 1900, drill 4465’ to 4618’, slide 70’ ROT 83’ WOP 10, RPM 75, GPM 500, TQ 9000, off TQ 7600, SPP 1975, DIFF 200, P/U 132, S/O 80, ROT 96, slow pump rates at 4385’ 9.7 ppg, drilled from 4681’ to 4281’, WOB 10, RPM 75, GPM 500, SPP 1900, P/U 135, S/O 80, ROT 100, TQ on 10000, TQ off 7500, ROP 75, MTR RPM 150, DIFF150, slid 135’ at 75R. 9/8/2014: Drilled from 4821’ to 5008’, max gas of 1300 units, weighted up to 909 ppg, drilled from 5008’ to 5130’ WOB 10, RPM 75, GPM 500, SPP 2000, P/U 130, S/O 80, ROT 102, TQ on 8500, TQ off 7000, ROP 150, MTR RPM 150, DIFF 1500, circulated hole clean for wiper trip, increased mud weight to 10.1 ppg, checked for flow, no flow, performed short trip to shoe, pulled on elevators from 5130’ to 4250’ pumped and reamed 4250’ to shoe, hole unloaded clay and coal, serviced rig, tripped in hole and reamed final stand, loaded drill pipe with sweep, drilled from 5130’ to 5342’ WOB 10, GPM 500, RPM 75, SPP 2250, drilled to 5689’. Paxton #8 7 9/9/2014: Drilled from 5342’ to 5692’ WOB 10, RPM 80, GPM 500, SPP 2400, P/U 125, S/O 90, ROT 108, TQ on 10500, TQ off 8200, ROP 150, MTR RPM 150, DIFF 175, drilled from 5692’ to 5941’ WOB 10, RPM 80, GPM 500, SPP 2450, P/U 125, S/O 92, ROT 110, TQ on 10500, TQ off 8200, ROP 150, DIFF 250, weighted up mud to 10.8 ppg at 5400’, drilled from 5941’ to 6060’, slid 45’ and rotated 74’, worked tight hole, spotted lube pill on back side of BHA, worked pipe free, set off jars 16 times, pulled 280 klbs max, pumped out and racked back 5 stand wiper trip, reamed to bottom, drilled from 6060’ to 6313’, slid 83’, rotated 173’, WOB 12, RPM 80, GPM 490, SPP 2600, continued drilling to 6414’. 9/10/2014: Pumped high viscosity sweep, circulated hole clean, 500 gpm, SPP 2450, 25% increase in cuttings, pulled out of hole from 6419’ to 5100’, tight at 5735’ 30K, over/reamed 5604’ to 5573’, 5469’ to 5437’, 5338’, RPM 30, GPM 400, SPP 1700, washed and back reamed out of hole from 5050’ to 4260’, continued to trip out of hole from 4260’ to 3487’, slipped and cut off 27’ of drilling line, performed flow check and monitored well, no flow, tripped in hole from 4260’ to 6371’, conditioned mud and circulated bottoms up, max gas of 645 units, repaired rig/ #1 mud pump suction cap leaking, attempted to weld crack and stop leak, tripped out of hole to casing shoe at 3548’ due to mud pump repair, performed mad pass out of hole. 9/11/2014: Logged from 3642’ to 1720’ at 180’ per hour, continued to log out of hole to 1530’, tripped in hole from 1530’ to 6419’, checked for flow, no flow, filled pipe at 3577’, 5015’, and 6376’, drilled from 6419’ to 6716’. 9/12/2014: Drilled from 6722’ to 6840’, WOB 5, RPM 80, GPM 475, SPP 2550, P/U 125, S/O 85, ROT 100, TQ on 10000, TQ off 7500, ROP 65, MTR RPM 142, DIFF 125, slid 80’ at 180, slid from 6840’ to 6900’,P/U 125, SLK 85, ROT 100, WOB 8, SPP 2550, drilled from 6900’ to 7057’, P/U 125, SLK 90, ROT 105, WOB 11, SPP 2675, serviced rig, continued drilling to 7241’, no connection gasses observed in last 24 hours. 9/13/2014: Drilled from 7238’ to 7302’, serviced rig, changed out saver sub and clamp, drilled from 7302’ to 7380’, WOB 8, RPM 75, GPM 485, SPP 2700, P/U 130, S/O 95, ROT 110, TQ on 11000, TQ off 7800, ROP 65, MTR RPM 144, DIFF 250, conditioned mud and circulated, checked for flow, no flow, drilled from 7380 to 7426, PU 135, SLK 95, ROT 118, WOB 11, RPM 75, MTR RPM 115, GPM 475, TQ on 9800, TQ off 7500, ROP 100, DIFF 200, SPP 2450, repaired rig, attempted to break out of saver sub, changed out saver sub, drilled to 7745’, no connection gasses observed in past 24 hours. 9/14/2014: Drilled from 7745’ to 7986’, WOB 10 RPM 75, GPM 475, SPP 2600, TQ on 10900, TQ off 7800, P/U 150, S/O 98, ROT 119, MTR RPM 144, DIFF 375, pumped high viscosity sweep, circulated hole clean, 480 GPM, 2700 PSI, tripped out of hole for wiper trip from 7986’ to 6400’, pulled tight at 7294’ and 6430’, serviced rig, repaired rig and troubleshot problem with top drive, changed pressure valve, adjusted to correct setting, tripped in hole from 6400’ to 7986’, checked for flow, no flow, and filled pipe at 7545’, washed down last stand, drilled from 7992’ to 8025’, PU 150, SLK 98, ROT 120, WOB 12, RPM 75, GPM 475, MTR RPM 145, SPP 2675, TQ on 11800, TQ off 8500, ROP 75, DIFF 275, drilled from 8025’ to 8109’, repaired rig and replaced saber sub, continued drilling to 8133’. 9/15/2014: Replaced saver sub and clamp, drilled from 8133’ to 8298’, WOB 14, RPM 75, GPM 480, SPP 2800, P/U 155, S/O 99, ROT 121, TQ on 11000, TQ off 8000, ROP 70 through zones of interest, continued drilling to 8375’, serviced rig, installed saver sub and clamp, continued drilling to 8421’, repaired rig, broke out of saver sub, checked threads, re-torqued saver sub to 23000 max, continued drilling to 8864’. 9/16/2014: Drilled from 8864’ to 9200’, WOB 14, RPM 75, GPM 480, SPP 3000, P/U 160, S/O 100, ROT 130, TQ on 12500, TQ off 10000, ROP 70, MTR RPM 144, DIFF 375, drilled from 9200’ to 9310’, WOB 14, RPM 75, GPM 480, SPP 300, P/U 175, S/O 105, ROT 135, TQ on 11400, TQ off 9800, ROP 114, MTR RPM 150, DIFF 435, reached TD at 9310’, racked back on stand, circulated, checked for flow, now flow, tripped out of hole from 9258’ to 9046’, back reamed from 9046’ to 8000’, drill pipe torqued up, broke connection with tongs, pulled with elevators to 3514’, reamed tight spot at 7782’, hole fill of 7.5 bbls, Paxton #8 8 serviced top drive, drawworks, crown and blocks, slipped and cut 75’ of drilling line, reset com, recalibrated hookload. 9/17/2014: Slipped and cut 80’ of drilling line, reset com, recalibrated hookload tripped in the hole from 3514’ to 9310’, washed last stand to bottom, hole fill of 3 bbls, filled pipe at 5200’, 6750’, 5200’, conditioned mud and circulated, pumped sweep, 471 units of gas at bottoms up, conditioned mud and circulated, took survey on bottom, checked for flow, no flow, tripped out of hole from 9308’ to 7660’, checked for flow at 7660’ and 5820’, no flow, monitored well at 5820’, pre job safety meeting for laying down drill pipe and readying trailers for drill pipe, drop mud dog pipe wiper, tripped out of hole from 5820’ to 1100’ laying down drill pipe, stood back 11 stands of drill pipe, 19 joints of heavy weight drill pipe, and jars in mast, hole fill of 4.8 bbls, held safety meeting for laying down flex monel and removing radioactive sources, downloaded MWD tools, laid down MWD tools. 9/18/2014: Laid down stabilizers, float sub, drained motor, broke and graded bit, laid down motor and jars, cleaned the rig floor, laid down third party tools, serviced the top drive and draw works, made up bit, tripped in hole to 5620’, filled pipe, performed flow check, no flow, pumped slug, tripped out of hole, laying down drill pipe from 5620’, performed flow checks at 3540’ and 150’, calculated 39.3 bbls, measured 40 bbls, filled hole, picked up two joints of drill pipe and broke out torqued up saver sub, pulled wear bushings, did a dummy ran hanger to record rotary Kelly bushing, changed out upper pipe rams to 5 ½”, set test plug, rigged up test equipment, flooded BOPs, tested upper rams at 250 low and 3500 high, rigged down test equipment, pulled test plug, held safety meeting for rigging up casing running tool, service loop, and hydraulic elevators. 9/19/2014: Loaded centralizers to rig floor, loaded racks with casing, made up shoe track and float equipment and Baker lock threads, filled test floats, ran 5 1/2 inch casing, used API modified dope, torqued, at 13,800, EOT = 3000’, continued running 5 ½ inch casing to 9277’, filled pipe every 10 stands and circulated bottoms up at 3650’, 6750’, and 9265’ made up casing torque at 10300/2000 PSV, calculated bbl displacement of 58.8, measured 52.1, with a difference of 6.7 bbls, picked up hanger landing joint, landed casing, laid down casing running tools, picked up Baker Hughes cementing head, tied into rig stand pipe, rigged up cement head, conditioned mud and circulated, staged pumps to 7 bpm, conditioned mud at 700 psi, held safety meeting, dropped bottom plug, pumped 5 bbls water, loaded top plug, pressure tested surface lines to 5000 psi, pumped 168 bbls of lead cement, 13.5 ppg, 160 bbls of tail cement, 15.7 ppg, displaced with KCL 213.5 bbls, Canrig began rigging down. Paxton #8 9 3 GEOLOGICAL DATA 3.1 Lithostratigraphy Prognosed Tops by Hilcorp Geologist and Observed Tops by Canrig Geologist. PROGNOSED OBSERVED FORMATION MD (ft) TVD (ft) SSTVD (ft) MD (ft) TVD (ft) SSTVD (ft) Beluga 50 2394 2072 -1902 2374 2072 -1905 Beluga 135 4080 3531 -3361 4398 3641 -3474 Top Tyonek 4240 3669 -3499 4480 3705 -3538 T-12 5480 4743 -4573 5744 4711 -4544 T-65 7573 6554 -6384 7695 6445 -6278 T-90 8079 7011 -6841 8176 6919 -6752 T-140 8758 7624 -7454 8834 7566 -7399 Paxton #8 10 3.2 Lithology Details Full service mudlogging began at 3554’ MD/ 2992’ TVD. All the sample lithology descriptions provided by Canrig began after intermediate casing point. The well includes Beluga and Tyonek formations whose lithology of largely volcanic ash-derived fluvial sediments include: tuffaceous claystone, tuffaceous siltstone, sand/sandstone, volcanic ash, coal and various other minor to trace thinly bedded lithologies. The wellbore was drilled to 9310’ MD / 8038’ TVD / -7821’ TVDSS. SAND (3560' - 3600') = medium gray to medium dark gray; lower to upper fine grained; high degree of sphericity; sub angular to angular; well to very well sorted; occasional impact surface features; silty tuffaceous matrix material; abundant cement in 3570' sample. Tuffaceous siltstone/tuffaceous CLAYSTONE (3600' - 3690') = dark gray; stiff to tough tenacity; earthy fracture; massive cuttings habit; dull to greasy luster; silty to gritty texture; occasional micro lamination of carbonaceous material; slightly expansive and pliable; lumpy to punky consistency; secondary sand and carbonaceous material; common safe- carb mud additive. TUFFACEOUS SILTSTONE/TUFFACEOUS CLAY- STONE (3690' - 3790') = dark gray; tough To elastic tenacity; planar to earth fracture; tabular to massive cuttings habit; dull to earthy luster; smooth to gritty texture; massive to occasional micro laminae structure; cohesive; lumpy to punky consistency; abundant sand, coal and carbonaceous material; rare lower coarse grained, highly angular quartz grains, abundant safecarb mud additive. SAND/TUFFACEOUS SILTSTONE (3790'-3910') = medium light gray to dark gray; quartz dominant framework; lower fine grained; well to very well sorted; angular to subangular grains; high degree of sphericity; occasional impact surface features; unconsolidated; tuffaceous and silty matrix material; matrix supported; trace upper coarse quartz grains; siltstone is medium dark gray to dark gray; easily friable; poorly indurated; dense to brittle tenacity; planar to earth fracture; tabular to massive cuttings habit; dull luster; clayey to silty texture; occasional micro laminae of carbonaceous material; pliable; stiff consistency; abundant safecarb mud additive. TUFFACEOUS SILTSTONE (3910' - 3960') = medium dark gray to dark gray; easily friable; poorly indurated; dense to brittle tenacity; planar to earthy fracture; massive to nodular cuttings habit; dull to earthy luster; silty to gritty texture; massive structure; hydrofissile; punky to tacky consistency; secondary lower fine grained sand; trace coal and carbonaceous material. TUFFACEOUS SILTSTONE / TUFFACEOUS CLAY- STONE (3960 - 4030') = medium dark gray to dark gray; easily friable to friable; poorly indurated; dense to pulverulent tenacity; irregular to planar fracture; massive to nodular cuttings habit; dull to earthy luster; silty to gritty texture; massive structure; expansive; clumpy to punky consistency; secondary lower to upper fine grained sand; trace carbonaceous material; abundant safecarb mud additive. TUFFACEOUS SILTSTONE / TUFFACEOUS CLAYSTONE (4030' - 4110') = medium gray to medium dark gray; easily friable to soft; moderate to moderately poor induration; crumbly to brittle tenacity; irregular to planar fracture; massive to sub nodular cuttings habit; earthy to dull luster; silty to gritty texture; massive structure; claystone, clumpy tenacity, cohesive; sand, upper to lower fine; carbonaceous siltstone, coal. TUFFACEOUS SILTSTONE / TUFFACEOUS CLAYSTONE (4110' - 4170') = medium gray to medium dark gray; easily friable to soft; moderate to moderately poor induration; crumbly to brittle tenacity; irregular to planar fracture; massive to sub nodular cuttings habit; earthy to dull luster; silty to gritty texture; massive structure; sand, lower fine to upper lower fine, spherical to sub discoidal, sub round to sub angular, well sorted. SAND / SANDSTONE (4170' - 4230') = medium dark gray to dark gray, some medium gray; upper fine to lower fine occasional medium; spherical to sub discoidal; sub angular to sub round; moderately well to well Paxton #8 11 sorted; unconsolidated or easily friable; tuffaceous matrix; matrix supported; texturally immature; compositionally immature; quartz, translucent or transparent; interbedded carbonaceous material; tuffaceous siltstone. TUFFACEOUS SILTSTONE (4230' - 4275') = medium dark gray to medium gray, slight light olive gray; friable to easily friable to soft; poorly indurated; brittle to crumbly to dense tenacity; earthy to hackly fracture; massive or sub nodular cuttings habit; earthy to dull luster; silty to gritty to clayey texture; massive structure; sand, fine, spherical, sub angular to sub round, well sorted, unconsolidated. SAND / SANDSTONE (4275' - 4320') = medium dark gray to medium gray; lower fine to upper fine to upper very fine; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; unconsolidated to friable to easily friable; tuffaceous matrix; matrix supported; texturally immature; compositionally immature; quartz, frosted; tuffaceous siltstone, carbonaceous material. TUFFACEOUS SILTSTONE (4320' - 4420') = medium gray to medium dark gray; easily friable to soft; poorly to very poorly indurated; brittle to crumbly tenacity; earthy to hackly fracture; massive or sub nodular or sub tabular cuttings habit; earthy to dull luster; silty to gritty to clayey texture; massive structure, occasional carbonaceous lamination; sand, lower fine to upper fine, spherical, sub angular, well sorted; carbonaceous material. SAND / SANDSTONE (4420' - 4480') = medium dark gray to medium gray; lower fine to upper very fine grained, occasional upper fine and medium grain; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; unconsolidated to easily friable; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; carbonaceous material. TUFFACEOUS SILTSTONE (4480' - 4545') = medium gray to medium light gray; very friable to friable, soft in places; moderately poorly to poorly indurated; crumbly to crunchy tenacity; earthy to hackly fracture; massive to sub nodular cuttings habit; earthy to dull luster; silty to gritty texture; massive structure; carbonaceous material; sand, upper very fine to lower fine, spherical, sub round, moderately well sorted, unconsolidated, quartz. TUFFACEOUS SANDSTONE/TUFFACEOUS SILTSTONE (4545' - 4615') = medium dark gray to dark gray; upper very fine to lower fine grained; quartz dominant framework; well sorted; subrounded to angular; moderate to highly spherical; occasional impact surface features; soft to poorly consolidated; tuffaceous and silty matrix material; matrix supported; secondary coal and carbonaceous material; tuffaceous siltstone with low sand content also common throughout samples. Tuffaceous SANDSTONE/TUFFACEOUS SILTSTONE (4615' - 4690') = medium dark gray to dark gray; upper very fine to lower fine grained; quartz dominant framework; moderate sorting; subrounded to subangular; moderate sphericity; impact and frosted surface features common; poorly consolidated to unconsolidated; tuffaceous silty matrix material; grain supported; secondary tuff; trace carbonaceous material; trace greenish gray grains. TUFFACEOUS SILTSTONE/TUFFACEOUS SANDSTONE (4690' - 4740') = medium gray to medium dark gray; soft to easily friable; poor to moderately induration; dense to pulverulent tenacity; earthy to planar fracture; massive to nodular cuttings habit; earthy to waxy luster; silty to gritty texture; massive structure with rare micro laminations; stiff consistency; secondary lower fine grained quartz sand. TUFFACEOUS SILTSTONE/SAND (4740' - 4790') = medium dark gray to dark gray; soft to firm; tough to stiff tenacity; earthy to planar fracture; massive to nodular cuttings habit; dull to earthy luster; silty to gritty texture; massive structure; punky consistency; abundant fine grained angular quartz sand. TUFFACEOUS SILTSTONE/SAND 4790' - 4875') = medium dark gray to dark gray; firm to moderate hardness; moderate degree of induration; tough to dense tenacity; irregular to planar fracture; massive to nodular cuttings habit; occasional pdc bit markings; dull to earthy luster; silty to gritty texture; massive structure Paxton #8 12 with occasional micro laminae; stiff consistency; secondary fine grained quartz sand with trace lithics. TUFFACEOUS SILTSTONE (4875' - 4935') = medium gray to medium dark gray; firm to Friable; moderate induration; dense to stiff tenacity; earthy to blocky fracture; massive to nodular cuttings habit; dull luster; clayey to gritty texture; massive structure; punky consistency; trace carbonaceous material; lower fine grained quartz sand common; abundant safecarb mud additive. TUFFACEOUS SILTSTONE (4935' -4980') = dark gray; firm hardness; dense tenacity; blocky to planar fracture; nodular cuttings habit; dull luster; silty texture; massive structure; stiff consistency; secondary quartz sand; very poor sample quality; 80% safecarb mud additive in 4950' and 4980' sample. SANDSTONE / SAND (4980' - 5040') = medium dark gray to medium gray; lower fine to upper fine, occasional lower medium and upper very fine; spherical to sub prismoidal; sub angular to sub round; well to moderately well sorted; friable to unconsolidated; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent or transparent; carbonaceous material; porosity and permeability visually good. TUFFACEOUS SILTSTONE (5040' - 5130') = friable to very friable; moderately to poorly indurated; crumbly to crunchy tenacity; earthy to hackly to planar fracture; massive cuttings habit; earthy to dull luster; silty to gritty texture; massive or laminae structure; some carbonaceous laminae w/in siltstone; sandstone, lower fine to upper fine, spherical to sub prismoidal, sub angular to sub round, well to moderately well sorted, friable, tuffaceous matrix, matrix supported, texturally immature, quartz, translucent to transparent. SAND (5130' - 5160') = medium dark gray to dark gray, slight olive gray sub hue; lower fine to upper very fine, occasional medium; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; unconsolidated; texturally immature compositionally immature; quartz, translucent to transparent; carbonaceous material; tuffaceous siltstone with carbonaceous laminations. SAND (5190' - 5280') = medium dark gray to dark gray, slight olive gray sub hue; upper very fine to lower fine with upper fine and lower very fines, rare medium; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; unconsolidated; texturally immature; compositionally sub mature; quartz, translucent to transparent; carbonaceous material; pale yellowish orange volcanics; porosity and permeability visually good. COAL (5280' - 5290') = grayish black to black; hard; moderate to well indurated; tough to brittle tenacity; conchoidal to blocky fracture; massive to equant cuttings habit; vitreous luster; smooth texture; massive structure; massive bedding; secondary sand and tuffaceous siltstone. SAND/TUFFACEOUS SILTSTONE (5290' - 5360') = medium dark gray to dark gray with secondary olive gray hues; quartz dominant framework; lower medium to lower fine grained; fair sorting; subrounded to subangular; moderate sphericity; occasional impact surface features; tuffaceous matrix material; abundant siltstone and tuffaceous siltstone; secondary carbonaceous material. TUFFACEOUS SANDSTONE / SAND (5360' - 5410') = medium light gray to medium dark gray; dominant quartz framework; easily friable to poorly consolidated; lower medium to upper very fine grained; Fair sorting; subrounded to angular; moderate sphericity; impact surface features; tuffaceous matrix material; rare light brown angular sand grains with reddish hue. TUFFACEOUS SANDSTONE (5410' - 5480') = medium light gray to medium dark gray; quartz framework with secondary lithics; upper fine to upper very fine grained; moderate to well sorted; subrounded to subangular; moderate to high sphericity; grains occasionally show impact surface features; poor consolidation; tuffaceous matrix material with silt; grain supported; grades into an unconsolidated sand at 5460'; secondary tuffaceous siltstone. TUFFACEOUS SANDSTONE / TUFFACEOUS SILTSTONE (5480' - 5560') = medium gray to dark gray; dominant quartz framework; upper very fine to upper fine grained; fair to well sorted; subrounded to subangular; Paxton #8 13 moderate sphericity; impact surface features found on quartz grains; pdc bit markings found on tuffaceous siltstone cuttings; unconsolidated to poorly consolidated; abundant tuffaceous matrix material; matrix supported; secondary carbonaceous material and coal fines; trace lithic fragments and free devitrified ash. TUFFACEOUS SILTSTONE/SAND (5560' - 5620') = medium dark gray to dark gray; firm hardness; poor to moderate induration; dense to stiff tenacity; earthy to irregular fracture; massive to nodular cuttings habit; dull to earthy luster; silty to abrasive texture; dominantly massive structure with rare micro lamination of carbonaceous material; stiff consistency; abundant fine grained quartz sand; secondary carbonaceous material and coal fines. TUFFACEOUS SILTSTONE (5620' - 5670') = medium dark gray to dark gray; moderate induration; dense tenacity; irregular to blocky fracture; massive to nodular cuttings habit; dull earthy luster; silty texture; rare micro laminations; secondary fine grained quartz sand; abundant safecarb mud additive. TUFFACEOUS SILTSTONE (5690' - 5750') = medium dark gray to dark gray and olive gray and brownish gray in part; firm to friable hardness; dense to tough tenacity; irregular to planar fracture; massive to nodular cuttings habit with trace pdc bit markings; dull to earthy luster; smooth to silty texture; massive with rare contorted structures; stiff consistency, secondary tuffaceous sandstone. TUFFACEOUS SILTSTONE (5750' - 5805') = medium gray to medium dark gray and olive black in part; firm; moderate induration tough to brittle tenacity; irregular to planar fracture; massive to nodular cuttings habit with PDC bit deformation marks; dull to earthy luster; silty to gritty texture; massive structure; stiff to punky consistency; secondary non-tuffaceous siltstone and tuffaceous sandstone. TUFFACEOUS SILTSTONE (5805' - 5860') = medium gray to dark gray; firm hardness; poor to moderate induration; dense to pulverulent tenacity; irregular to occasionally planar fracture; massive to nodular cuttings habit; dull to earthy luster; silty to gritty texture; sand common throughout siltstone; massive structure; common upper fine to lower fine grained quartz sand. TUFFACEOUS SILTSTONE (5860' - 5900') = medium dark gray to medium gray, slight olive gray sub hue; friable to easily friable to firm friable; moderately indurated; crunchy to pulverant tenacity; earthy or planar fracture; massive to nodular cuttings habit; dull to earthy luster; silty to gritty texture; massive structure; coal, sub bituminous to lignitic, grayish black; tuffaceous sandstone, fine, spherical, sub angular, moderately well sorted, friable, tuffaceous matrix, matrix supported, quartz. Sandstone / SAND (5900' - 6060') = medium dark gray to medium gray, slight light olive gray sub hue; upper very fine to lower fine, occasional upper fine and medium grain; spherical to sub discoidal; sub angular to sub round; moderately well to well sorted; friable or unconsolidated; matrix supported; tuffaceous matrix; texturally immature; compositionally sub mature; quartz, translucent to transparent; tuffaceous siltstone, friable, moderately indurated, crunchy tenacity, earthy fracture, massive cuttings habit, dull luster, silty texture, massive structure; coal, sub bituminous to lignitic, grayish black, friable, moderately hard, brittle tenacity, planar / massive fracture, irregular cuttings habit, dull luster, matte texture, massive structure. SAND (6060' - 6120') = medium dark gray to medium gray, slight olive gray sub hue; lower fine to upper very fine, occasional upper fine and medium; spherical to sub discoidal; sub angular to sub round; moderately to well sorted; unconsolidated; texturally immature; compositionally sub mature; quartz, translucent or transparent; coal, sub bituminous to lignitic, grayish black, friable, moderately hard, planar, sub conchoidal fracture, irregular cuttings habit, dull luster, matte texture, massive or laminae structure. SAND (6120' - 6230') = medium dark gray to medium gray, slight olive gray sub hue; lower fine to upper very fine, occasional upper fine and medium; spherical to sub discoidal; sub angular to sub round; moderately to well sorted; unconsolidated; texturally immature; compositionally sub mature; quartz, translucent or transparent; coal, sub bituminous to lignitic, grayish black, friable, moderately hard, planar, sub conchoidal fracture, irregular cuttings habit, dull luster, matte texture, massive or laminae structure; tuffaceous siltstone, easily friable, moderately indurated, crumbly tenacity, planar fracture, sub tabular cuttings habit, earthy luster, silty texture, laminae structure, carbonaceous laminations. Paxton #8 14 SAND/TUFFACEOUS SILTSTONE (6240' - 2285') = medium gray to dark gray; upper very fine to upper fine grained; dominantly quartz with trace volcanics in framework; well to moderate sorting; angular to subrounded grains; moderate to high sphericity; occasional impact surface features; unconsolidated; secondary devitrified ash. Tuffaceous CLAYSTONE/TUFFACEOUS SILTSTONE (6280' - 6340') = medium dark gray to dark gray; soft; malleable tenacity; irregular earthy fracture; massive cuttings habit; dull to earthy luster; smooth to gritty texture; massive structure; cohesive and expansive; mushy to lumpy consistency; secondary quartz sand found within claystone and siltstone; secondary tuffaceous material. TUFFACEOUS SANDSTONE / TUFFACEOUS SILTSTONE (6340' - 6400') = medium light gray to medium dark gray; quartz framework with secondary volcanic lithics; upper fine to upper very fine grained; moderate sorting; subrounded to subangular; moderate sphericity; poor consolidation to unconsolidated; tuffaceous matrix material; grain supported. SAND (6400' - 6540') = medium gray to medium light gray; lower fine to upper very fine, occasional lower very fine and upper fine; spherical to sub discoidal; sub round to sub angular; well to moderately well sorted; unconsolidated; matrix supported; tuffaceous matrix; texturally immature; compositionally sub mature; quartz, translucent to transparent; carbonaceous material; volcanics; coal, sub bituminous; porosity and permeability visually good. SAND/TUFFACEOUS SANDSTONE (6540' - 6600') = medium light gray to medium dark gray; upper to lower fine grained; moderate sphericity; subrounded to subangular; well sorted; unconsolidated to poorly consolidated; tuffaceous matrix; grain supported; quartz, trans- lucent to transparent; secondary volcanics; porosity and permeability visually good; secondary tuffaceous siltstone SAND (6600' - 6660') = medium gray to medium dark gray; upper fine to lower fine grained; moderate to low sphericity; subangular to subrounded; moderate to well sorted; unconsolidated with secondary poorly consolidated tuffaceous sandstone; tuffaceous matrix grain supported; quartz, translucent to transparent; common volcanic lithics; common coal fines; secondary tuffaceous siltstone; porosity and permeability visually good. SAND (6660' - 6740') = medium dark gray to dark gray with brownish black hues; upper very fine to lower fine grained; low to high degree of sphericity; angular to subrounded; well sorted; unconsolidated; silty matrix material; grain supported; quartz dominant; trace carbonaceous material and volcanics; secondary siltstone; void of tuffaceous material porosity and permeability visually good; abundant safecarb mud additive. TUFFACEOUS SILTSTONE (6740' - 6810') = medium dark gray to dark gray; soft to moderately hard; moderate to well indurated; dense to tough tenacity; irregular to blocky fracture with occasional planar fracture; nodular to curved cuttings habit; dull to earthy luster; sooth to gritty texture; massive structure; varying amounts of clay; slightly cohesive in part; secondary sand and sandstone; common carbonaceous material. SAND / TUFFACEOUS SANDSTONE (6810' - 6880') = medium gray to medium light gray; lower fine to upper fine to upper very fine; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; unconsolidated or friable; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; pale yellow volcanics; carbonaceous material; porosity and permeability visually good. COAL (6880' - 6900') = grayish black to black; moderately hard; moderately indurated; brittle to dense tenacity; planar to irregular fracture; massive cuttings habit; earthy to dull luster; silty or mottled texture; laminae or thin structure; sub bituminous or lignitic; some laminations interbedded with siltstone; sand, fine, well sorted, sub angular, spherical, unconsolidated, quartz. Paxton #8 15 TUFFACEOUS SANDSTONE / SAND (6900' - 6990') = medium gray to medium light gray; lower fine to upper very fine; sub angular to angular; spherical to sub discoidal; easily friable to unconsolidated; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; carbonaceous material; pale yellow volcanics; porosity and permeability good to fair. TUFFACEOUS SANDSTONE/SAND (6990' - 7060') = medium gray to medium dark gray; upper very fine to lower fine grained; moderate sphericity; angular to subangular; moderate to well sorting; unconsolidated to moderate consolidation; tuffaceous to silty matrix material; grain supported; quartz transparent to translucent; secondary siltstone; trace volcanics; porosity and permeability visually good. SAND/COAL (7060' - 7110') = medium light gray to medium dark gray; upper very fine to upper fine grained; moderate sphericity; subangular to angular with trace rounded grains; moderate to well sorted; unconsolidated; no matrix to occasional tuffaceous matrix material; trace volcanic tuff and silt- stone; abundant coal and carbonaceous material with blocky fracture. TUFFACEOUS SANDSTONE (7110' - 7175') = medium gray to medium dark gray; upper very fine to upper fine grained with trace medium grained quartz; moderate to low degree of sphericity; subrounded to angular; moderate to well sorted; unconsolidated to moderate consolidation; tuffaceous matrix material; grain supported; quartz dominant; secondary siltstone and carbonaceous material; abundant volcanic tuff; porosity and permeability visually fair. TUFFACEOUS SANDSTONE/TUFFACEOUS SILTSTONE (7175' - 7310') = sand light to medium dark gray; upper very fine to lower fine grained; moderate to low sphericity; subangular to angular; moderate to well sorted; unconsolidated to moderately consolidated; silty tuffaceous matrix material; grain supported; quartz dominant framework; quartz is transparent to translucent; secondary grains of carbonaceous material and volcanic lithics; porosity and permeability visually good; tuffaceous siltstone is medium dark gray to dark gray; easily friable to firm friable; poor to moderate induration; dense to pulverulent tenacity; irregular fracture with secondary planar fracture; massive to nodular cuttings habit; dull to earthy luster; silty to gritty texture; massive structure; stiff consistency. TUFFACEOUS SILTSTONE / TUFFACEOUS SANDSTONE (7310' - 7410') = medium gray to medium dark gray; easily friable to friable; moderately indurated; crumbly crunchy tenacity; planar or earthy fracture; massive, elongated or nodular cuttings habit; earthy to dull luster; silty to gritty texture; laminae thin or massive structure, carbonaceous laminations with in siltstone; tuffaceous sandstone, medium gray, fine, spherical, sub angular, well sorted, friable, tuffaceous matrix, matrix supported, texturally immature, compositionally submature, quartz, carbonaceous material; porosity and permeability visually fair. TUFFACEOUS SANDSTONE (7410' - 7470') = medium dark gray to medium gray; lower fine to upper very fine, occasional upper fine or lower very fine; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; friable with some unconsolidated; matrix supported; tuffaceous matrix; texturally immature; compositionally sub mature; quartz, transparent or translucent; pale yellow orange volcanics; black carbonaceous material; porosity and permeability visually fair. TUFFACEOUS SANDSTONE/SAND (7470' - 7530') =medium gray to medium dark gray; upper very fine to lower fine grained; moderate sphericity; subrounded to angular; moderate to well sorted; poor to moderate consolidation; tuffaceous to silty matrix; grain supported; secondary carbonaceous material and siltstone. COAL (7530' - 7550') = black to brownish black in part; firm friable to moderately hard; moderate induration brittle tenacity; conchoidal to blocky fracture; massive to platy cuttings habit; dull to vitreous luster; smooth texture; massive structure; sub bituminous. SAND/TUFFACEOUS SILTSTONE (7550' - 7650') = medium gray to medium light gray; upper very fine to lower fine grained with trace upper medium quartz grains; moderate sphericity; subangular to subrounded; unconsolidated to poor consolidation; tuffaceous matrix; quartz transparent to translucent; secondary coal fines; porosity and permeability visually good; tuffaceous siltstone is medium dark gray to dark gray; easily friable to moderate hardness; poor to moderate induration; tough to dense tenacity; irregular to planar Paxton #8 16 fracture in part; massive to nodular cuttings habit; dull earthy luster; silty to gritty texture; massive structure. TUFFACEOUS SILTSTONE (7650' - 7675') = medium gray to dark gray; soft to moderately hard; poor to moderate induration; tough to brittle tenacity; irregular to blocky fracture; massive to nodular cuttings habit; dull earthy luster; silty to gritty textural; massive structure with rare micro laminations; stiff consistency; secondary quartz upper very fine to lower fine grained sand; trace volcanics and carbonaceous material. SAND (7675' - 7770') = medium dark gray; upper fine to lower fine grained with secondary lower medium grains; moderate sphericity; subangular to angular; well to moderately sorted; unconsolidated; no matrix material; no volcanic tuff; dominant quartz framework with secondary lithics and carbonaceous material porosity and permeability visually good. TUFFACEOUS SANDSTONE (7770' - 7850') = medium gray to dark gray; upper very fine to upper medium grained; moderate sphericity; subrounded to angular; unconsolidated to poor consolidation; tuffaceous to silty matrix material; quartz dominant framework; porosity and permeability visually good; secondary silt and tuffaceous siltstone. SAND (7850' - 7900') = medium gray to dark gray; upper very fine to lower medium grained; moderate to low sphericity; subangular to angular; moderate sorting; unconsolidated to poorly consolidated in part; silty matrix material; grain supported; secondary carbonaceous material and volcanics; common siltstone; porosity and permeability visually good. TUFFACEOUS SANDSTONE (7900' - 7970') = medium dark gray to dark gray; upper very fine to upper fine grained with trace medium grained quartz; moderate to low degree of sphericity; subrounded to angular; moderate to well sorted; unconsolidated to moderate consolidation; silty to tuffaceous matrix; grain supported; quartz dominant; secondary siltstone and carbonaceous material; porosity and permeability visually good. SAND (7970' - 8030') = medium gray to medium dark gray; upper very fine to upper fine grained; moderate to low sphericity; subrounded to angular; moderate to well sorted; unconsolidated rare silty matrix material; grain supported; texturally mature to submature; compositionally submature; dominant quartz framework; abundant carbonaceous material; secondary volcanics and other lithic fragments; porosity and permeability visually good. TUFFACEOUS SANDSTONE (8030' - 8090') = light gray to medium gray; upper very fine to upper fine grained; subrounded to subangular; moderate to well sorted; poor to moderate consolidation; abundant tuffaceous matrix; quartz dominant framework with secondary volcanic fragments and carbonaceous material; secondary tuffaceous siltstone; porosity and permeability visually fair to good. TUFFACEOUS SANDSTONE (8090' - 8165') = medium light gray to medium dark gray; upper very fine to upper medium grained; moderate to low sphericity; sub rounded to angular; poor to moderate sorting; poor consolidation to unconsolidated; tuffaceous matrix material; grain supported; secondary tuffaceous siltstone and carbonaceous material; TUFFACEOUS SANDSTONE (8165' - 8230') = light gray to medium gray; upper very fine to upper medium grained with trace lower coarse grains; subrounded to subangular; moderate to well sorted; poor to moderate consolidation; abundant tuffaceous matrix and tuff; quartz dominant framework with secondary lithic fragments and carbonaceous material; secondary tuffaceous siltstone; porosity and permeability visually fair to good. TUFFACEOUS SANDSTONE (8230' - 8295') = medium light gray to light gray; upper fine to lower fine with occasional coarse grains; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; friable to unconsolidated; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; black carbonaceous material; pale yellow volcanics; porosity and permeability visual fair to good. Paxton #8 17 TUFFACEOUS SANDSTONE (8295' - 8400') = medium light gray to light gray; upper fine to lower fine with occasional coarse grains; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; friable to unconsolidated; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; black carbonaceous material; pale yellow volcanics; coal, sub bituminous, moderately hard, moderate to well indurated, brittle to dense tenacity, irregular, planar, conchoidal and splintery fracture, irregular or planar cuttings habit, earthy to dull luster, matte texture, thing or laminae TUFFACEOUS SANDSTONE (8400' - 8490') = medium light gray to light gray; upper fine to lower fine; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; friable to unconsolidated; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; black carbonaceous material; pale yellow volcanics; tuffaceous siltstone, friable, moderate induration, crumbly tenacity, earthy fracture, massive cuttings habit, earthy luster, silty texture, massive structure; sand porosity and permeability visually fair to good. TUFFACEOUS SANDSTONE (8490' - 8580') = medium light gray to light gray; upper fine to lower fine; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; friable to unconsolidated; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; black carbonaceous material; pale yellow volcanics; coal, sub bituminous, grayish black, hard, well indurated, tough tenacity, conchoidal fracture, massive cuttings habit, dull luster, matte texture, massive structure; porosity and permeability visually fair to good. TUFFACEOUS SANDSTONE (8580' - 8640') = light gray to medium light gray; upper fine to upper very fine grained with rare very coarse grains; moderate to poor sphericity; subangular to angular; moderate to poorly sorted; friable to poorly consolidated; abundant tuffaceous matrix; matrix supported; dominant quartz framework with volcanic lithics and tuff; very coarse quartz is translucent with frosted texture and subangular; porosity and permeability fair to good. TUFFACEOUS SANDSTONE (8640' - 8740') = light gray to medium light gray; upper fine to upper very fine grained; with trace coarse grains; moderate to poor sphericity; subrounded to angular; moderate to poorly sorted; friable to poorly consolidated and occasionally well consolidated; abundant tuffaceous matrix; grain supported; dominant quartz framework with volcanic lithics and tuff; rare light grayish green grains, lower fine, subrounded; porosity and permeability visually fair to good; coal at 8680'; black; moderately hard to firm friable; moderate induration; blocky cuttings habit; smooth texture; tough to brittle tenacity; dull to vitreous luster; blocky to conchoidal fracture. TUFFACEOUS SANDSTONE (8740' - 8810') = light gray to medium gray; upper very fine to upper medium grained with trace lower coarse grains; subrounded to subangular; moderate to well sorted; poor to well consolidated; abundant tuffaceous matrix and tuff; quartz dominant framework with secondary lithic fragments and carbonaceous material; trace to rare light greenish gray grains; porosity permeability visually fair to good. TUFFACEOUS SANDSTONE (8810' - 8890') = light gray to medium gray; upper very fine to lower medium grained; subrounded to subangular; moderate to well sorted; poor to well consolidated; abundant tuffaceous matrix; quartz dominant framework with secondary lithics and carbonaceous material; trace to rare light greenish gray grains; porosity permeability visually fair to good. TUFFACEOUS SILTSTONE (8890' - 8955') = medium dark gray to dark gray with secondary brownish hues; moderately hard to easily friable; tough to pulverulent tenacity; irregular to planar fracture; massive to nodular cuttings habit; dull to earthy luster; silty to gritty texture; massive structure with occasional micro laminae; stiff consistency; abundant sand and tuffaceous sandstone; sand is upper very fine to upper fine and quartz dominant; secondary carbonaceous material. COAL (8955' - 8990') = black; moderately hard; tough to brittle tenacity; blocky to conchoidal fracture; flakey to massive cuttings habit; dull to vitreous luster; smooth texture; massive structure; sub bituminous. Paxton #8 18 TUFFACEOUS SANDSTONE (8990' - 9040') = medium light gray to medium gray; upper very fine to lower medium grained; moderate sphericity; subrounded to angular; unconsolidated to moderate consolidation; tuffaceous matrix; grain supported; secondary dark gray with brownish gray hues; trace volcanics and other lithic material. TUFFACEOUS SANDSTONE (9040' - 9120') = light gray to medium gray; upper fine to lower fine with some upper very fine and coarse grains; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; friable with some unconsolidated; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; black carbonaceous material; pale yellow orange volcanics; porosity and permeability visually fair to good. TUFFACEOUS SANDSTONE (9120' - 9165') = light gray to medium gray; upper fine to lower fine with some upper very fine and coarse grains; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; friable with some unconsolidated; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; black carbonaceous material; pale yellow orange volcanics. TUFFACEOUS SILTSTONE (9165' - 9240') = medium gray to medium dark gray; friable to easily friable; moderately indurated; crumbly to crunchy tenacity; planar or irregular fracture; massive or nodular cuttings habit; earthy or dull luster; silty to gritty texture; massive or laminae structure; black carbonaceous material with in siltstone creates fabric. TUFFACEOUS SANDSTONE (9240' - 9310') = light gray to medium gray; upper fine to lower fine with some upper very fine and coarse grains; spherical to sub discoidal; sub angular to sub round; well to moderately well sorted; friable with some unconsolidated; tuffaceous matrix; matrix supported; texturally immature; compositionally sub mature; quartz, translucent to transparent; black carbonaceous material; pale yellow orange volcanics; porosity and permeability visually fair to good. Paxton #8 19 3.3 Sampling Program The sampling program specified by the Hilcorp Geologist called for the collection of three sets of Washed and Dried Reference Samples beginning at 3540’ MD. The resulting set, interval, and distribution are shown below. Sets Type and Purpose Interval Frequency Distribution A Washed and Dried Reference Samples 3540’ – 4215’ 4215’ – 4290’ 4290’ – 4410’ 4410’ – 4590’ 4590’ – 5760’ 5760’ – 5910’ 5910’ – 7590’ 7590’ – 7680’ 7680’ – 7920’ 7920’ – 8400’ 8400’ – 8520’ 8520’ – 8745’ 8745’ – 8775’ 8775’ – 8850’ 8850’ – 9000’ 9000’ – 9180’ 9180’ – 9310’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ David Buthman Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 B Washed and Dried Reference Samples 3540’ – 4215’ 4215’ – 4290’ 4290’ – 4410’ 4410’ – 4590’ 4590’ – 5760’ 5760’ – 5910’ 5910’ – 7590’ 7590’ – 7680’ 7680’ – 7920’ 7920’ – 8400’ 8400’ – 8520’ 8520’ – 8745’ 8745’ – 8775’ 8775’ – 8850’ 8850’ – 9000’ 9000’ – 9180’ 9180’ – 9310’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ 15’ 30’ David Buthman Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 C Washed and Dried X-Ray Diffraction 4215’ – 4290’ 4410’ – 4590’ 5760’ – 5910’ 7590’ – 7680’ 7920’ – 8400’ 8520’ – 8745’ 8775’ – 8850’ 9000’ – 9180’ 15’ David Buthman Hilcorp Alaska LLC 3800 Center Point Drive, Suite 100 Anchorage, AK 99508 Paxton #8 20 4 DRILLING DATA 4.1 Surveys Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18.50 0.00 0.00 18.50 0.00 0.00 0.00 0.00 188.66 0.24 74.04 188.66 0.10 0.34 0.19 0.14 249.73 0.24 197.42 249.73 0.01 0.43 0.13 0.69 311.17 0.19 320.98 311.17 -0.03 0.32 0.06 0.62 372.11 0.19 278.78 372.11 0.06 0.16 0.10 0.22 406.99 0.39 12.77 406.99 0.19 0.13 0.21 1.28 469.67 2.46 5.95 469.65 1.73 0.32 1.75 3.31 530.70 4.15 6.49 530.57 5.23 0.70 5.22 2.77 594.11 6.26 9.88 593.72 10.92 1.55 10.93 3.36 649.77 7.80 10.41 648.96 17.62 2.76 17.71 2.77 710.86 9.93 10.63 709.31 26.88 4.48 27.08 3.49 774.09 13.18 10.27 771.25 39.33 6.77 39.69 5.14 838.20 17.36 10.94 833.09 55.92 9.89 56.51 6.53 900.37 20.98 11.66 891.80 75.93 13.90 76.86 5.84 962.42 23.78 11.66 949.17 99.07 18.68 100.42 4.51 1024.51 25.98 12.05 1005.49 124.63 24.05 126.48 3.55 1087.30 29.75 10.46 1060.99 153.41 29.75 155.73 6.12 1149.91 33.16 9.61 1114.40 185.58 35.43 188.23 5.49 1212.20 34.36 8.70 1166.18 219.75 40.93 222.62 2.09 1274.94 34.78 8.80 1217.84 254.94 46.35 257.96 0.68 1338.06 36.20 8.43 1269.24 291.17 51.83 294.32 2.28 1398.89 38.49 8.46 1317.59 327.67 57.25 330.92 3.76 1459.35 38.67 9.12 1364.86 364.93 63.01 368.34 0.74 1522.40 38.39 9.24 1414.18 403.70 69.28 407.36 0.46 1584.67 38.28 9.57 1463.02 441.80 75.59 445.75 0.37 1646.80 39.27 9.73 1511.46 480.16 82.11 484.44 1.61 1707.64 39.79 9.66 1558.38 518.34 88.63 522.95 0.85 1769.20 39.82 9.39 1605.68 557.20 95.16 562.13 0.29 1831.98 39.33 9.78 1654.07 596.64 101.82 601.90 0.88 1896.35 39.06 9.92 1703.95 636.72 108.77 642.36 0.44 1957.87 38.85 9.82 1751.79 674.83 115.41 680.84 0.35 2018.17 38.68 9.84 1798.81 712.03 121.85 718.40 0.29 2080.11 38.47 10.22 1847.23 750.06 128.58 756.83 0.51 2143.17 39.43 10.20 1896.27 789.07 135.61 796.29 1.52 Paxton #8 21 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 2205.38 40.49 10.76 1943.96 828.36 142.88 836.07 1.80 2265.75 40.66 10.56 1989.81 866.95 150.14 875.19 0.35 2328.19 40.81 9.17 2037.13 907.09 157.12 915.72 1.47 2391.72 40.50 8.47 2085.32 947.99 163.47 956.81 0.87 2452.67 40.16 8.90 2131.79 986.98 169.42 995.95 0.72 2515.46 39.97 8.71 2179.84 1026.92 175.61 1036.07 0.36 2576.84 39.74 8.43 2226.96 1065.82 181.47 1075.10 0.47 2639.52 39.51 8.27 2275.24 1105.37 187.28 1114.75 0.41 2700.36 39.27 8.20 2322.26 1143.58 192.81 1153.03 0.39 2763.16 38.91 8.62 2371.00 1182.76 198.60 1192.30 0.71 2825.05 38.71 8.11 2419.23 1221.13 204.24 1230.77 0.61 2887.43 38.32 8.34 2468.04 1259.57 209.80 1269.28 0.67 2949.94 38.04 8.72 2517.18 1297.78 215.53 1307.61 0.58 3011.29 37.83 8.87 2565.56 1335.06 221.30 1345.05 0.36 3073.36 37.66 9.08 2614.64 1372.59 227.23 1382.79 0.34 3135.08 37.45 9.24 2663.57 1409.73 233.22 1420.16 0.39 3198.56 37.18 8.88 2714.06 1447.73 239.28 1458.38 0.54 3260.67 37.77 9.00 2763.35 1485.06 245.15 1495.91 0.95 3323.84 38.10 9.15 2813.17 1523.41 251.27 1534.48 0.55 3383.49 38.69 9.43 2859.92 1559.98 257.25 1571.30 1.03 3446.71 39.32 10.04 2909.04 1599.19 263.98 1610.87 1.16 3507.53 39.35 9.74 2956.09 1637.17 270.61 1649.22 0.31 3600.98 40.73 10.35 3027.63 1696.36 281.10 1709.04 1.53 3661.98 40.85 10.17 3073.81 1735.58 288.19 1748.71 0.28 3724.71 40.51 9.80 3121.38 1775.85 295.28 1789.40 0.67 3787.22 40.24 9.45 3169.01 1815.77 302.05 1829.66 0.56 3848.11 40.22 9.53 3215.49 1854.56 308.53 1868.76 0.09 3909.91 39.88 8.60 3262.80 1893.83 314.80 1908.25 1.12 3972.91 39.62 8.13 3311.24 1933.69 320.66 1948.20 0.63 4034.31 39.53 8.11 3358.56 1972.41 326.18 1986.97 0.15 4097.03 39.44 7.84 3406.97 2011.91 331.72 2026.49 0.31 4221.97 38.99 7.26 3503.77 2090.21 342.09 2104.68 0.46 4282.14 38.94 6.92 3550.55 2127.76 346.76 2142.09 0.37 4345.03 38.86 7.76 3599.50 2166.93 351.81 2181.16 0.85 4406.27 38.93 8.32 3647.16 2205.01 357.18 2219.26 0.58 4469.74 38.68 8.11 3696.62 2244.37 362.86 2258.70 0.45 4530.35 38.21 8.12 3744.09 2281.68 368.18 2296.05 0.77 4592.45 36.17 10.91 3793.56 2318.69 374.36 2333.35 4.27 4654.48 35.74 13.52 3843.78 2354.28 382.06 2369.69 2.56 4716.89 35.39 17.33 3894.56 2389.26 391.71 2405.97 3.59 Paxton #8 22 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 4778.80 35.94 24.59 3944.88 2422.91 404.61 2441.86 6.89 4841.07 36.67 26.72 3995.06 2456.14 420.58 2478.18 2.35 4902.53 37.78 26.61 4043.99 2489.37 437.26 2514.68 1.81 4964.83 39.52 25.33 4092.65 2524.35 454.29 2552.97 3.06 5027.62 39.78 24.71 4140.99 2560.65 471.24 2592.51 0.76 5088.45 39.42 24.31 4187.86 2595.93 487.33 2630.83 0.72 5150.16 39.05 23.99 4235.66 2631.55 503.30 2669.44 0.69 5213.73 39.86 23.39 4284.74 2668.54 519.53 2709.45 1.41 5274.89 41.14 23.79 4331.25 2704.94 535.42 2748.80 2.13 5337.89 40.78 23.23 4378.82 2742.81 551.89 2789.72 0.82 5398.48 40.51 22.99 4424.80 2779.12 567.38 2828.86 0.51 5461.90 40.40 22.57 4473.05 2817.06 583.32 2869.70 0.47 5586.07 39.79 21.64 4568.04 2891.15 613.41 2949.17 0.68 5647.70 39.91 21.66 4615.35 2927.86 627.98 2988.46 0.20 5709.05 41.05 20.97 4662.02 2964.96 642.45 3028.10 1.98 5771.96 41.32 20.71 4709.36 3003.68 657.19 3069.36 0.51 5833.42 40.96 20.27 4755.65 3041.56 671.34 3109.65 0.75 5895.59 39.88 21.54 4802.98 3079.21 685.72 3149.80 2.19 5957.58 38.50 22.60 4851.02 3115.51 700.43 3188.73 2.47 6019.30 37.37 23.37 4899.70 3150.44 715.24 3226.36 1.99 6081.32 36.18 23.70 4949.38 3184.48 730.07 3263.15 1.94 6143.49 34.13 24.60 5000.21 3217.15 744.71 3298.56 3.39 6205.73 33.28 25.29 5051.99 3248.46 759.27 3332.65 1.51 6267.86 31.08 25.20 5104.57 3278.39 773.38 3365.28 3.54 6329.64 30.42 25.35 5157.67 3306.95 786.86 3396.42 1.07 6390.27 28.97 24.77 5210.33 3334.15 799.59 3426.06 2.44 6452.56 27.54 23.67 5265.20 3361.04 811.69 3455.22 2.44 6515.02 27.36 23.19 5320.63 3387.46 823.14 3483.76 0.46 6577.37 27.39 22.52 5375.99 3413.88 834.27 3512.21 0.49 6639.16 26.21 22.11 5431.15 3439.65 844.85 3539.88 1.94 6700.99 23.85 22.92 5487.17 3463.81 854.86 3565.85 3.85 6762.84 22.06 20.91 5544.12 3486.18 863.88 3589.83 3.17 6825.93 19.84 21.23 5603.03 3507.23 871.98 3612.29 3.52 6887.26 17.57 20.81 5661.12 3525.59 879.04 3631.87 3.71 6950.47 16.04 21.64 5721.63 3542.63 885.65 3650.06 2.45 7012.72 14.79 20.86 5781.64 3558.05 891.66 3666.53 2.03 7073.57 14.47 20.09 5840.51 3572.45 897.03 3681.85 0.61 7135.63 14.34 19.61 5900.62 3586.97 902.28 3697.25 0.29 7197.77 14.45 20.28 5960.81 3601.49 907.55 3712.66 0.33 7261.09 13.82 19.38 6022.21 3616.04 912.80 3728.08 1.05 Paxton #8 23 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 7321.63 13.29 18.49 6081.07 3629.46 917.40 3742.25 0.94 7383.87 12.73 18.12 6141.71 3642.77 921.81 3756.25 0.92 7445.89 12.43 19.71 6202.24 3655.55 926.18 3769.74 0.74 7508.34 12.22 21.73 6263.25 3668.01 930.89 3783.01 0.77 7570.15 11.77 21.12 6323.71 3679.97 935.59 3795.79 0.75 7631.96 11.31 19.79 6384.27 3691.55 939.91 3808.11 0.86 7693.68 10.83 18.67 6444.84 3702.74 943.81 3819.94 0.85 7756.59 10.77 18.05 6506.64 3713.93 947.53 3831.72 0.21 7818.04 10.44 17.42 6567.04 3724.70 950.97 3843.02 0.57 7880.39 10.21 16.60 6628.38 3735.39 954.24 3854.20 0.44 7942.01 9.75 15.60 6689.07 3745.65 957.21 3864.88 0.80 8004.32 10.39 18.64 6750.42 3756.06 960.42 3875.77 1.34 8066.83 11.08 23.16 6811.83 3766.92 964.59 3887.35 1.73 8128.62 11.14 21.39 6872.47 3777.93 969.10 3899.18 0.56 8190.49 11.25 19.45 6933.16 3789.19 973.29 3911.15 0.64 8252.82 11.07 20.31 6994.31 3800.54 977.39 3923.18 0.40 8318.22 10.86 20.06 7058.52 3812.21 981.68 3935.58 0.32 8381.24 10.84 20.00 7120.41 3823.36 985.75 3947.41 0.04 8440.15 10.70 19.99 7178.28 3833.70 989.51 3958.39 0.23 8501.86 10.36 20.70 7238.95 3844.28 993.43 3969.63 0.60 8564.02 9.96 20.16 7300.14 3854.55 997.26 3980.56 0.65 8625.21 9.86 19.84 7360.41 3864.45 1000.86 3991.06 0.20 8688.17 9.59 19.54 7422.47 3874.45 1004.45 4001.67 0.44 8749.58 9.25 19.94 7483.05 3883.91 1007.84 4011.69 0.55 8811.39 9.20 19.63 7544.06 3893.24 1011.20 4021.58 0.12 8873.73 8.80 18.52 7605.64 3902.45 1014.38 4031.31 0.71 8935.46 8.34 18.10 7666.68 3911.18 1017.27 4040.50 0.75 8998.22 8.08 17.62 7728.79 3919.71 1020.02 4049.45 0.43 9059.63 7.87 17.68 7789.61 3927.83 1022.61 4057.96 0.33 9122.49 7.69 4/365 7851.89 3935.92 1025.42 4066.47 0.32 9184.14 7.38 17.75 7913.00 3943.61 1027.74 4074.55 0.53 9245.70 7.18 17.97 7974.07 3951.04 1030.13 4062.34 0.32 9310.00 7.18 17.97 8037.87 3958.68 1032.61 4090.37 0.00 Pa x t o n # 8 24 4. 2 B i t R e c o r d BI T NO . SI Z E TY P E S/ N JE T S / TF A IN OU T FT HR S AV E RO P Ft / H R CONDITION 1 1 2 . 2 5 ” HD B S Q H 1 G R Mi l l T o o t h 12 4 6 0 7 8 1 3 x 1 8 0. 7 4 5 5 13 5 ’ 3 5 5 4 ’ 3 4 1 9 ’ 6 1 . 3 3 5 6 2 - 3 - B U - G - E - I - P N - T D 1R R 1 2 . 2 5 ” HD B S Q H 1 G R Mi l l T o o t h 12 4 6 0 7 8 1 3 x 1 8 0. 7 4 5 5 35 5 4 ’ 3 5 5 4 ’ 0 ’ 0 0 2 - 3 - B U - G - E - I - W T - T D 2 8 . 5 ” KD B S M M 6 5 M PD C 12 3 5 4 2 8 4 6 x 1 2 0. 6 6 2 7 35 5 4 9 3 1 0 ’ 5 7 5 6 ’ 1 0 5 . 1 4 5 5 1 - 2 - C T - G - X - I - N O - T D Pa x t o n # 8 25 4. 3 M u d R e c o r d Co n t r a c t o r : M . I . S w a c o De p t h Da t e MD ( f t ) TV D (f t ) MW (p p g ) VI S (s / q t ) PV YP Ge l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) MB T pH Cl (ml/l) Ca (ml/l) Sp u d M u d 8/ 2 8 / 2 0 1 4 1 3 5 1 3 5 8 . 7 3 4 5 3 0 4 8 36 / 4 5 / 4 9 1 4 . 0 2 / - 9 7 . 0 /3 - 2 8 . 0 9 . 8 6 0 0 1 2 0 8/ 2 9 / 2 0 1 4 5 8 9 5 8 9 8 . 7 1 3 0 1 4 5 1 27 / 3 6 / 4 0 1 6 . 6 2 / - 3 . 0 / 97 1 . 0 0 2 5 . 0 9 . 7 5 0 0 4 0 8/ 3 0 / 2 0 1 4 1 8 1 8 1 6 4 3 9 . 3 1 1 0 3 3 4 4 27 / 4 1 / 4 8 7 . 8 2 / - 7 . 0 / 93 0 . 7 5 2 5 . 0 9 . 8 8 0 0 4 0 8/ 3 1 / 2 0 1 4 2 6 8 7 2 3 1 2 9 . 8 9 0 3 3 3 7 16 / 2 6 / 3 9 7 . 8 2 / - 1 0 . 0 / 90 0 . 3 0 2 5 . 0 9 . 7 5 0 0 4 0 9/ 1 / 2 0 1 4 3 2 7 9 2 7 8 8 9 . 9 9 5 3 4 4 2 18 / 2 9 / 3 8 6 . 6 2 / - 1 0 . 0 / 90 0 . 3 0 2 7 . 5 9 . 7 5 0 0 4 0 9/ 2 / 2 0 1 4 3 5 5 4 2 9 9 2 1 0 . 2 8 4 3 4 3 5 16 / 2 3 / 2 8 6 . 8 2 / - 1 1 . 5 / 89 0 . 2 5 2 7 . 0 9 . 2 5 0 0 4 0 9/ 3 / 2 0 1 4 3 5 5 4 2 9 9 2 1 0 . 0 6 5 2 9 3 3 17 / 2 2 / 2 6 6 . 0 2 / - 1 0 . 0 / 90 0 . 2 5 2 7 . 5 9 . 0 5 0 0 4 0 9/ 4 / 2 0 1 4 3 5 5 4 2 9 9 2 1 0 . 0 4 5 1 7 2 0 9/ 2 2 / 2 4 6 . 0 2 / - 1 0 . 0 / 90 0 . 2 5 2 7 . 5 9 . 0 5 0 0 4 0 9/ 5 / 2 0 1 4 3 5 5 4 2 9 9 2 9 . 9 4 5 1 7 2 0 9/ 1 2 / 1 4 6 . 0 2 / - 1 0 . 0 / 90 0 . 2 5 2 7 . 5 9 . 0 5 0 0 4 0 Kl a - S h i e l d 9/ 6 / 2 0 1 4 3 6 5 1 3 0 6 7 9 . 5 5 5 1 0 2 7 10 / 1 1 / 1 3 8 . 8 1 / - 6 . 0 / 94 0 . 1 0 2 . 5 1 1 . 1 3 5 0 0 0 1 2 0 9/ 7 / 2 0 1 4 4 7 0 5 3 8 9 5 9 . 8 6 0 1 7 3 3 13 / 2 1 / 2 5 5 . 8 1 / 1 8 . 0 2 / 90 0 . 1 0 3 . 5 1 0 . 7 4 1 0 0 0 1 0 0 9/ 8 / 2 0 1 4 5 5 4 4 4 5 4 6 1 0 . 6 6 1 2 0 4 0 14 / 2 3 / 2 8 6 . 0 1 / 1 1 2 . 0 2 / 86 0 . 1 0 6 . 0 1 0 . 6 4 8 0 0 0 9 0 9/ 9 / 2 0 1 4 6 3 5 6 5 1 8 1 1 1 . 0 6 2 2 2 4 4 15 / 2 6 / 3 4 9 . 4 1 / 1 1 4 . 0 3 / 83 0 . 1 0 8 . 0 1 0 . 5 4 8 0 0 0 8 0 9/ 1 0 / 2 0 1 4 6 4 1 9 5 2 3 5 1 1 . 2 8 0 2 4 4 8 19 / 2 9 / 3 7 5 . 3 1 / 1 1 4 . 0 3 / 83 0 . 1 0 8 . 0 1 0 . 6 4 2 0 0 0 7 0 9/ 1 1 / 2 0 1 4 6 6 7 2 5 4 5 9 1 1 . 0 6 7 2 3 4 7 16 / 2 6 / 3 3 5 . 3 1 / 1 1 4 . 0 4 / 82 0 . 1 0 9 . 0 1 0 . 3 3 9 0 0 0 7 0 9/ 1 2 / 2 0 1 4 7 1 7 9 5 9 3 4 1 1 . 0 5 8 2 3 3 8 12 / 2 1 / 2 6 5 . 2 1 / 1 1 4 . 0 4 / 82 0 . 1 0 9 . 0 1 0 . 1 5 2 0 0 0 6 0 9/ 1 3 / 2 0 1 4 7 6 1 2 6 3 6 5 1 1 . 1 6 0 2 6 4 3 12 / 2 1 / 2 9 5 . 0 1 / 1 1 4 . 0 2 / 84 0 . 1 0 9 . 0 1 0 . 1 5 2 0 0 0 6 0 9/ 1 4 / 2 0 1 4 8 1 0 7 6 8 5 1 1 1 . 2 5 5 2 2 3 7 10 / 2 0 / 2 6 5 . 1 1 / 1 1 5 . 0 4 / 81 0 . 1 0 1 0 . 0 1 0 . 2 6 5 0 0 0 7 0 9/ 1 5 / 2 0 1 4 8 7 1 9 7 4 5 1 1 1 . 1 5 0 2 0 3 3 9/ 1 8 / 2 3 5 . 4 1 / 1 1 5 . 0 3 / 82 0 . 1 0 1 0 . 0 1 0 . 1 6 3 0 0 0 6 0 9/ 1 6 / 2 0 1 4 9 3 1 0 8 0 3 8 1 1 . 0 5 7 2 3 3 4 9/ 1 5 / 2 2 4 . 8 1 / 1 1 5 . 0 3 / 82 0 . 1 0 1 1 . 0 1 0 . 1 5 9 0 0 0 6 0 9/ 1 7 / 2 0 1 4 9 3 1 0 8 0 3 8 1 1 . 0 6 2 2 3 3 5 9/ 1 5 / 2 2 4 . 8 1 / 1 1 5 . 0 3 / 82 0 . 1 0 1 1 . 0 1 0 . 1 5 9 0 0 0 6 0 9/ 1 8 / 2 0 1 4 9 3 1 0 8 0 3 8 1 1 . 0 8 3 2 0 2 9 8/ 1 4 / 2 1 4 . 9 1 / 1 1 5 . 0 3 / 82 0 . 1 0 1 1 . 0 1 0 . 0 5 9 0 0 0 6 0 9/ 1 9 / 2 0 1 4 9 3 1 0 8 0 3 8 1 1 . 1 5 4 1 9 2 4 6/ 1 1 / 1 7 4 . 9 1 / 1 1 5 . 0 3 / 82 0 . 1 0 1 1 . 0 1 0 . 0 5 8 0 0 0 6 0 Ab b r e v i a t i o n s : MW = M u d W e i g h t V I S = F u n n e l V i s c o s i t y PV = P l a s t i c V i s c o s i t y Y P = Y i e l d P o i n t G e l s = G e l S t r e n g t h F L = W a t e r o r F i l t r a t e Lo s s F C = F i l t e r C a k e O / W = O i l t o W a t e r r a t i o S o l s = S o l i d s S d = S a n d c o n t e n t M B T = M e t h y l e n e B l u e A l k , P m = A l k a l i n i t y , M u d pH = A c i d i t y C l = C h l o r i d e s C a = H a r d n e s s C a l c i u m n r = N o t R e c o r d e d Pa x t o n # 8 26 4. 4 D r i l l i n g P r o g r e s s C h a r t 0 50 0 10 0 0 15 0 0 20 0 0 25 0 0 30 0 0 35 0 0 40 0 0 45 0 0 50 0 0 55 0 0 60 0 0 65 0 0 70 0 0 75 0 0 80 0 0 85 0 0 90 0 0 95 0 0 10 0 0 0 8 /2 7 /1 4 8/28/14 8 /2 9 /1 4 8/30 /14 8 /3 1 /1 4 9 /1/1 4 9/2 /14 9 /3/1 4 9/4 /14 9/5/1 4 9/6 /1 4 9/7/1 4 9 /8 /1 4 9/9/14 9/10/14 9/1 1 /14 9/12/14 9/1 3 /1 4 9/14/14 9 /1 5 /1 4 9/16/14 9 /1 7 /1 4 9/18 /14 9 /19/1 4 D E P T H (F T ) 12 1/4" Hole 8 1/2" Hole Paxton #8 27 5 SHOW REPORTS Hydrocarbon Show Report # 1 Operator: Well: API Number: Field: Date: Rig: Time: County: Depth Start End State: 1644'MD 1657'MD Country: 1510'TVD 1519'TVD Averages Before During After Maximum ROP (fph) 108 74 100 161 WOB 20.0 9.0 18.5 18.0 RPM 62 36 63 63 Mud Weight 9.15 9.10 9.10 9.15 Chloride 400 400 400 400 Total Gas 408 904 288 904 C1 (ppm) 80,957 156,760 52,432 156,760 C2 (ppm) 253 - - - C3 (ppm) 69 - - - C4 (ppm) - - - - C5 (ppm) - - - - Lithology Cuttings Analysis Odor Fluorescence Cut Fluorescence Residual Cut Stain Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Residual Fluorescence Cut Color Intesity Color Color Show Rating Free Oil in Mud Comments Report by: Tyler Harris Gas show, no oil indicators present. 18:00 Sand = Medium dark gray to very light gray; lower fine grained; moderate sphericity; angular to very angular; well sorted; unconsolidated; impact surface features; predominant quartz framework; secondary tuffaceous material; trace mica. Kenai Peninsula Borough Alaska United States of America Saxon 147 8/30/2014 Hilcorp Alaska, LLC. 50-133-20638-00-00 Paxton #8 Ninilchik Unit Pixler Plot 1 10 100 1000 10000 1 2 3 4 pp m DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report # 2 Operator: Well: API Number: Field: Date: Rig: Time: County: Depth Start End State: 1671'MD 1657'MD Country: 1530'TVD 1542'TVD Averages Before During After Maximum ROP (fph) 93 116 99 157 WOB 20.6 19.4 19.5 19.4 RPM 67 65 65 65 Mud Weight 9.10 9.10 9.10 9.10 Chloride 400 400 400 400 Total Gas 232 600 223 874 C1 (ppm) 42,090 103,008 41,554 146,711 C2 (ppm) - - - - C3 (ppm) - - - - C4 (ppm) - - - - C5 (ppm) - - - - Lithology Cuttings Analysis Odor Fluorescence Cut Fluorescence Residual Cut Stain Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Residual Fluorescence Cut Color Intesity Color Color Show Rating Free Oil in Mud Comments Report by: Tyler Harris Gas show, no oil indicators present. 18:50 Sand = Dark gray to very light gray; lower fine grained; moderate to high sphericity; angular to very angular; well sorted; unconsolidated; impact surface features; predominant quartz framework; secondary tuffaceous material; trace mica. Kenai Peninsula Borough Alaska United States of America Saxon 147 8/30/2014 Hilcorp Alaska, LLC. 50-133-20638-00-00 Paxton #8 Ninilchik Unit Pixler Plot 1 10 100 1000 10000 1 2 3 4 pp m DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report # 3 Operator: Well: API Number: Field: Date: Rig: Time: County: Depth Start End State: 2687'MD 2711'MD Country: 2312'TVD 2331'TVD Averages Before During After Maximum ROP (fph) 66 95 81 126 WOB 21.5 21.4 21.3 21.4 RPM 66 66 67 66 Mud Weight 9.80 9.80 9.85 9.80 Chloride 400 400 400 400 Total Gas 139 584 173 670 C1 (ppm) 25,761 104,626 29,783 121,422 C2 (ppm) 92 41 138 142 C3 (ppm) 23 11 47 35 C4 (ppm) - - - - C5 (ppm) - - - - Lithology Cuttings Analysis Odor Fluorescence Cut Fluorescence Residual Cut Stain Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Residual Fluorescence Cut Color Intesity Color Color Show Rating Free Oil in Mud Comments Report by: Tyler Harris Gas show, no oil indicators present. 21:20 Sand = Medium dark gray to very light gray; lower fine grained; moderate to high sphericity; angular to very angular; well sorted; unconsolidated; impact surface features; predominant quartz framework; trace mica. Kenai Peninsula Borough Alaska United States of America Saxon 147 8/31/2014 Hilcorp Alaska, LLC. 50-133-20638-00-00 Paxton #8 Ninilchik Unit Pixler Plot 1 10 100 1000 10000 1 2 3 4 pp m DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #4 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3213'MD 3244'MD Country:20 2725'TVD 2750'TVD Averages Before During After Maximum ROP (fph)42 ft/hr 46 ft/hr 30 ft/hr 81 ft/hr WOB 20 klbs 18 klbs 18 klbs 20 klbs RPM 75 rpm 75 rpm 4 rpm 77 rpm PP 1850 psi 1823 psi 1809 psi 1900 psi Mud Weight 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal Chloride 500 500 500 500 Total Gas 179 309 74 598 C1 (ppm)34,664 58,803 15,347 108,107 C2 (ppm)222 337 105 668 C3 (ppm)13 41 26 94 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/1/2014 6:00 PM Fluorescence Sand = medium gray to medium light gray; lower fine to upper fine, occasional course grain; spherical to sub discoidal; sub angular to angular; well to moderately well sorted; unconsolidated; texturally immature; compositionally sub mature; quartz; carbonaceous material; biotite; porosity and permeability visually good. Cut Fluorescence Residual Cut 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #5 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3279'MD 3295'MD Country:20 2778'TVD 2790'TVD Averages Before During After Maximum ROP (fph)27 ft/hr 45 ft/hr 33 ft/hr 71 ft/hr WOB 15 klbs 18 klbs 19 klbs 19 klbs RPM 52 rpm 72 rpm 72 rpm 73 rpm PP 1760 psi 1778 psi 1806 psi 1818 psi Mud Weight 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal Chloride 500 500 500 500 Total Gas 106 274 183 398 C1 (ppm)21,193 52,851 37,927 75,463 C2 (ppm)138 377 239 581 C3 (ppm)15 15 41 23 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/1/2014 9:30 PM Fluorescence Sand = medium gray to medium light gray; lower fine to upper fine, occasional course grain; spherical to sub discoidal; sub angular to angular; well to moderately well sorted; unconsolidated; texturally immature; compositionally sub mature; quartz; carbonaceous material; clay/siltstone; biotite; porosity and permeability visually good. Cut Fluorescence Residual Cut 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #6 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3324'MD 3337'MD Country:20 2813'TVD 2823'TVD Averages Before During After Maximum ROP (fph)39 ft/hr 38 ft/hr 29 ft/hr 80 ft/hr WOB 19 klbs 19 klbs 19 klbs 19 klbs RPM 72 rpm 71 rpm 72 rpm 73 rpm PP 1816 psi 1821 psi 1824 psi 1885 psi Mud Weight 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal Chloride 500 500 500 500 Total Gas 158 208 113 341 C1 (ppm)32,207 41,529 24,615 66,547 C2 (ppm)183 289 163 430 C3 (ppm)36 41 31 65 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/1/2014 11:00 PM Fluorescence Sand = medium gray to medium light gray; lower fine to upper fine, occasional course and very coarse grain; spherical to sub discoidal; sub angular to angular; well to moderately well sorted; unconsolidated; texturally immature; compositionally sub mature; quartz; clay/siltstone; coal; carbonaceous material; biotite; porosity and permeability visually good. Cut Fluorescence Residual Cut 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #7 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3398'MD 3415'MD Country:20 2871'TVD 2884'TVD Averages Before During After Maximum ROP (fph)40 ft/hr 60 ft/hr 35 ft/hr 82 ft/hr WOB 20 klbs 19 klbs 19 klbs 19 klbs RPM 18 rpm 61 rpm 68 rpm 70 rpm PP 1820 psi 1852 psi 1844 psi 1875 psi Mud Weight 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal Chloride 500 500 500 500 Total Gas 192 643 198 832 C1 (ppm)18,911 119,431 38,159 165,247 C2 (ppm)117 1,035 270 1,444 C3 (ppm)12 94 60 142 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/2/2014 2:30 AM Fluorescence Sand = medium gray to medium light gray; lower fine to upper fine, occasional course and very coarse grain; spherical to sub discoidal; sub angular to angular; well to moderately well sorted; unconsolidated; texturally immature; compositionally sub mature; quartz; clay/siltstone; coal; carbonaceous material; biotite; porosity and permeability visually good. Cut Fluorescence Residual Cut 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #8 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3460'MD 3489'MD Country:20 2919'TVD 2942'TVD Averages Before During After Maximum ROP (fph)26 ft/hr 39 ft/hr 34 ft/hr 63 ft/hr WOB 19 klbs 19 klbs 20 klbs 22 klbs RPM 68 rpm 68 rpm 17 rpm 69 rpm PP 1803 psi 1850 psi 1856 psi 1916 psi Mud Weight 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal Chloride 500 500 500 500 Total Gas 135 255 144 470 C1 (ppm)28,169 51,605 28,447 98,263 C2 (ppm)162 346 178 613 C3 (ppm)34 68 62 130 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/2/2014 5:00 AM Fluorescence Sand = medium gray to medium light gray; lower fine to upper fine, occasional course and very coarse grain; spherical to sub discoidal; sub angular to angular; well to moderately well sorted; unconsolidated; texturally immature; compositionally sub mature; quartz; coal; carbonaceous material; biotite; porosity and permeability visually good. Cut Fluorescence Residual Cut 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #9 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3534'MD 3547'MD Country:20 2976'TVD 2987'TVD Averages Before During After Maximum ROP (fph)41 ft/hr 48 ft/hr 17 ft/hr 60 ft/hr WOB 20 klbs 21 klbs 21 klbs 21 klbs RPM 69 rpm 68 rpm 25 rpm 68 rpm PP 1844 psi 1843 psi 644 psi 1874 psi Mud Weight 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal 9.7 lbs/gal Chloride 500 500 500 500 Total Gas 147 321 74 424 C1 (ppm)28,875 63,531 14,494 83,853 C2 (ppm)222 420 122 547 C3 (ppm)68 56 20 76 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/2/2014 7:50 AM Fluorescence Sand = medium gray to medium light gray; lower fine to upper fine, course and very coarse, bimodal; spherical to sub discoidal; sub angular to angular; moderately sorted; unconsolidated; texturally immature; compositionally sub mature; quartz; carbonaceous material; biotite; porosity and permeability visually good. Cut Fluorescence Residual Cut 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #10 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3808'MD 3830'MD Country:20 3185'TVD 3202'TVD Averages Before During After Maximum ROP (fph)116 ft/hr 135 ft/hr 84 ft/hr 214 ft/hr WOB 11 klbs 12 klbs 10 klbs 57 klbs RPM 57 rpm 54 rpm 29 rpm 58 rpm PP 1824 psi 1800 psi 1769 psi 1862 psi Mud Weight 9.5 lbs/gal 9.5 lbs/gal 9.5 lbs/gal 9.5 lbs/gal Chloride 35,000 35,000 35,000 35,000 Total Gas 142 555 87 851 C1 (ppm)26,610 97,724 17,878 155,021 C2 (ppm)200 779 128 1,283 C3 (ppm)59 20 10 35 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Cut SAND/TUFFACEOUS SILTSTONE = MEDIUM LIGHT GRAY TO DARK GRAY; QUARTZ DOMINANT FRAMEWORK; LOWER FINE GRAINED; WELL TO VERY WELL SORTED; ANGULAR TO SUBANGULAR GRAINS; HIGH DEGREE OF SPHERICITY; OCCASIONAL IMPACT SURFACE FEATURES; UNCONSOLIDATED; TUFFACEOUS AND SILTY MATRIX MATERIAL; MATRIX SUPPORTED; TRACE UPPER COARSE QUARTZ GRAINS; SILTSTONE IS MEDIUM DARK GRAY TO DARK GRAY; EASILY FRIABLE; POORLY INDURATED; DENSE TO BRITTLE TENACITY; PLANAR TO EARTH FRACTURE; TABULAR TO MASSIVE CUTTINGS HABIT; DULL LUSTER; CLAYEY TO SILTY TEXTURE; OCCASIONAL MICROLAMINAE OF CARBONACEOUS MATERIAL; PLIABLE; STIFF CONSISTENCY; ABUNDANT SAFECARB MUD ADDITIVE. Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/6/2014 23:45:00 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Tyler Harris Gas showOil Show Rating 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #11 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3865'MD 3890'MD Country:20 3228'TVD 3247'TVD Averages Before During After Maximum ROP (fph)155 ft/hr 130 ft/hr 120 ft/hr 241 ft/hr WOB 10 klbs 10 klbs 13 klbs 12 klbs RPM 64 rpm 57 rpm 57 rpm 59 rpm PP 1818 psi 1794 psi 1831 psi 1824 psi Mud Weight 9.5 lbs/gal 9.5 lbs/gal 9.5 lbs/gal 9.5 lbs/gal Chloride 35,000 35,000 35,000 35,000 Total Gas 211 260 166 404 C1 (ppm)42,523 47,884 32,361 74,526 C2 (ppm)346 303 169 480 C3 (ppm)9 37 11 75 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/7/2014 1:15 AM Residual Cut SAND/TUFFACEOUS SILTSTONE = MEDIUM LIGHT GRAY TO DARK GRAY; QUARTZ DOMINANT FRAMEWORK; LOWER FINE GRAINED; WELL TO VERY WELL SORTED; ANGULAR TO SUBANGULAR GRAINS; HIGH DEGREE OF SPHERICITY; OCCASIONAL IMPACT SURFACE FEATURES; UNCONSOLIDATED; TUFFACEOUS AND SILTY MATRIX MATERIAL; MATRIX SUPPORTED; TRACE UPPER COARSE QUARTZ GRAINS; SILTSTONE IS MEDIUM DARK GRAY TO DARK GRAY; EASILY FRIABLE; POORLY INDURATED; DENSE TO BRITTLE TENACITY; PLANAR TO EARTH FRACTURE; TABULAR TO MASSIVE CUTTINGS HABIT; DULL LUSTER; CLAYEY TO SILTY TEXTURE; OCCASIONAL MICROLAMINAE OF CARBONACEOUS MATERIAL; PLIABLE; STIFF CONSISTENCY; ABUNDANT SAFECARB MUD ADDITIVE. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #12 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3905'MD 3940'MD Country:20 3259'TVD 3286'TVD Averages Before During After Maximum ROP (fph)101 ft/hr 139 ft/hr 94 ft/hr 217 ft/hr WOB 13 klbs 10 klbs 10 klbs 11 klbs RPM 57 rpm 56 rpm 56 rpm 58 rpm PP 1806 psi 1856 psi 1847 psi 1910 psi Mud Weight 9.5 lbs/gal 9.5 lbs/gal 9.5 lbs/gal 9.5 lbs/gal Chloride 35,000 35,000 35,000 35,000 Total Gas 171 427 132 752 C1 (ppm)32,572 77,921 25,233 146,025 C2 (ppm)153 607 213 1,185 C3 (ppm)17 26 31 56 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/7/2014 1:50 AM Residual Cut TUFFACEOUS SILTSTONE = MEDIUM DARK GRAY TO DARK GRAY; EASILY FRIABLE; POORLY INDURATED; DENSE TO BRITTLE TENACITY; PLANAR TO EARTHY FRACTURE; MASSIVE TO NODULAR CUTTINGS HABIT; DULL TO EARTHY LUSTER; SILTY TO GRITTY TEXTURE; MASSIVE STRUCTURE; HYDROFISSILE; PUNKY TO TACKY CONSISTENCY; SECONDARY LOWER FINE GRAINED SAND; TRACE COAL AND CARBONACEOUS MATERIAL. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #13 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 3990'MD 4010'MD Country:20 3324'TVD 3340'TVD Averages Before During After Maximum ROP (fph)95 ft/hr 108 ft/hr 119 ft/hr 170 ft/hr WOB 11 klbs 11 klbs 14 klbs 12 klbs RPM 57 rpm 56 rpm 56 rpm 58 rpm PP 1862 psi 1849 psi 1909 psi 1891 psi Mud Weight 9.5 lbs/gal 9.5 lbs/gal 9.5 lbs/gal 9.5 lbs/gal Chloride 35,000 35,000 35,000 35,000 Total Gas 83 385 198 537 C1 (ppm)16,814 74,012 36,066 107,144 C2 (ppm)89 539 264 789 C3 (ppm)3 27 44 60 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/7/2014 2:55 AM Residual Cut TUFFACEOUS SILTSTONE/TUFFACEOUS CLAYSTONE = MEDIUM DARK GRAY TO DARK GRAY; EASILY FRIABLE TO FRIABLE; POORLY INDURATED; DENSE TO PULVERULENT TENACITY; IRREGULAR TO PLANAR FRACTURE; MASSIVE TO NODULAR CUTTINGS HABIT; DULL TO EARTHY LUSTER; SILTY TO GRITTY TEXTURE; MASSIVE STURUCTURE; EXPANSIVE; CLUMPY TO PUNKY CONSISTENCY; SECONDARY LOWER TO UPPER FINE GRAINED SAND; TRACE CARBONACEOUS MATERIAL; ABUNDANT SAFECARB MUD ADDITIVE. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #14 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 4020'MD 4090'MD Country:20 3347'TVD 3401'TVD Averages Before During After Maximum ROP (fph)100 ft/hr 126 ft/hr 117 ft/hr 212 ft/hr WOB 13 klbs 11 klbs 11 klbs 13 klbs RPM 57 rpm 56 rpm 57 rpm 58 rpm PP 1854 psi 1897 psi 1884 psi 1975 psi Mud Weight 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal Chloride 35,000 35,000 3,500 35,000 Total Gas 343 219 165 387 C1 (ppm)62,963 41,454 31,296 72,953 C2 (ppm)478 293 201 493 C3 (ppm)36 67 57 162 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Cut TUFFACEOUS SILTSTONE / TUFFACEOUS CLAYSTONE = MEDIUM GRAY TO MEDIUM DARK GRAY; EASILY FRIABLE TO SOFT; MODERATE TO MODERATELY POOR INDURATION; CRUMBLY TO BRITTLE TENACITY; IRREGULAR TO PLANAR FRACTURE; MASSIVE TO SUB NODULAR CUTTINGS HABIT; EARTHY TO DULL LUSTER; SILTY TO GRITTY TEXTURE; MASSIVE STRUCTURE; CLAYSTONE, CLUMPY TEANCITY, COHESIVE; SAND, UPPER TO LOWER FINE; CARBONACEOUS SILSTONE, COAL. Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/7/2014 3:30 AM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #15 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 4125'MD 4135'MD Country:20 3429'TVD 3436'TVD Averages Before During After Maximum ROP (fph)108 ft/hr 103 ft/hr 134 ft/hr 135 ft/hr WOB 11 klbs 10 klbs 13 klbs 11 klbs RPM 57 rpm 57 rpm 56 rpm 58 rpm PP 1900 psi 1877 psi 1930 psi 1909 psi Mud Weight 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal Chloride 35,000 35,000 3,500 35,000 Total Gas 149 266 120 370 C1 (ppm)28,853 54,053 24,455 74,838 C2 (ppm)171 310 136 455 C3 (ppm)42 32 22 40 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/7/2014 4:45 AM Residual Cut TUFFACEOUS SILTSTONE / TUFFACEOUS CLAYSTONE = MEDIUM GRAY TO MEDIUM DARK GRAY; EASILY FRIABLE TO SOFT; MODERATE TO MODERATLY POOR INDURATION; CRUMBLY TO BRITTLE TENACITY; IRREGULAR TO PLANAR FRACTURE; MASSIVE TO SUB NODULAR CUTTINGS HABIT; EARTHY TO DULL LUSTER; SILTY TO GRITTY TEXTURE; MASSIVE STRUCTURE; SAND, LOWER FINE TO UPPER LOWER FINE, SPHERICAL TO SUB DISCOIDAL, SUB ROUND TO SUB ANGULAR, WELL SORTED. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report # 16 Operator: Well: API Number: Field: Date: Rig: Time: County: Depth Start End State: 20 4155'MD 4190'MD Country: 20 3452'TVD 3479'TVD Averages Before During After Maximum ROP (fph) 132 ft/hr 188 ft/hr 165 ft/hr 297 ft/hr WOB 13 klbs 9 klbs 9 klbs 12 klbs RPM 56 rpm 57 rpm 57 rpm 58 rpm PP 1925 psi 1924 psi 1901 psi 1983 psi Mud Weight 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal Chloride 35,000 35,000 3,500 35,000 Total Gas 133 597 541 1,005 C1 (ppm) 26,916 112,345 100,036 182,115 C2 (ppm) 152 692 750 1,208 C3 (ppm) 22 114 109 183 C4 (ppm) - - - - C5 (ppm) - - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: SAND / SANDSTONE = MEDIUM DARK GRAY TO DARK GRAY, SOME MEDIUM GRAY; UPPER FINE TO LOWER FINE OCCASIONAL MEDIUM; SPHERICAL TO SUB DISCOIDAL; SUB ANGULAR TO SUB ROUND MODERATELY WELL TO WELL SORTED; UNCONSOLIDATED OR EASILY FRIABLE; TUFFACEOUS MATRIX; MATRIX SUPPORTED; TEXTURALLY IMMATURE; COMPOSITIONALLY IMMATURE; QUARTZ, TRANSLUCENT OR TRANSPARENT; INTERBEDDED CARBONACEOUS MATERIAL; TUFFACEOUS SILTSTONE. Saxon 147 9/7/2014 5:10 AM Residual Cut Hilcorp Alaska, LLC. 50-133-20638-00-00 Paxton #8 Ninilchik Unit Stain Fluorescence Cut Fluorescence Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Residual Fluorescence Cuttings Analysis Tollef Winslow Gas show Oil Show Rating Pixler Plot 1 10 100 1000 10000 1 2 3 4 pp m DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report # 17 Operator: Well: API Number: Field: Date: Rig: Time: County: Depth Start End State: 20 4270'MD 4295'MD Country: 20 3541'TVD 3560'TVD Averages Before During After Maximum ROP (fph) 69 ft/hr 67 ft/hr 121 ft/hr 92 ft/hr WOB 7 klbs 7 klbs 9 klbs 12 klbs RPM 55 rpm 55 rpm 60 rpm 71 rpm PP 1922 psi 1838 psi 1952 psi 1940 psi Mud Weight 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal Chloride 35,000 35,000 3,500 35,000 Total Gas 118 235 199 324 C1 (ppm) 23,223 46,934 38,218 64,733 C2 (ppm) 151 309 246 426 C3 (ppm) 16 31 45 42 C4 (ppm) 2 10 7 14 C5 (ppm) - - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: SAND / SANDSTONE = MEDIUM DARK GRAY TO MEDIUM GRAY; LOWER FINE TO UPPER FINE TO UPPER VERY FINE; SPHERICAL TO SUB DISCOIDAL; SUB ANGULAR TO SUB ROUND; WELL TO MODERATELY WELL SORTED; UNCONSOLIDATED TO FRIABLE TO EASILY FRIABLE; TUFFACEOUS MATRIX; MATRIX SUPPORTED; TEXTURALLY IMMATURE; COMPOSITIONALLY IMMATURE; QUARTZ, FROSTED; TUFFACEOUS SILTSTONE, CARBONACEOUS MATERIAL. Saxon 147 9/7/2014 7:00 AM Residual Cut Hilcorp Alaska, LLC. 50-133-20638-00-00 Paxton #8 Ninilchik Unit Stain Fluorescence Cut Fluorescence Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Residual Fluorescence Cuttings Analysis Tollef Winslow Gas show Oil Show Rating Pixler Plot 1 10 100 1000 10000 1 2 3 4 pp m DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #18 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 4678'MD 4698'MD Country:20 3872'TVD 3889'TVD Averages Before During After Maximum ROP (fph)47 ft/hr 104 ft/hr 46 ft/hr 202 ft/hr WOB 9 klbs 11 klbs 9 klbs 13 klbs RPM 22 rpm 32 rpm 7 rpm 78 rpm PP 2031 psi 1896 psi 1883 psi 2010 psi Mud Weight 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal 9.6 lbs/gal Chloride 35,000 35,000 35,000 35,000 Total Gas 42 200 38 333 C1 (ppm)7,997 39,922 8,211 67,277 C2 (ppm)53 86 49 150 C3 (ppm)11 73 24 116 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Cut TUFFACEOUS SANDSTONE/TUFFACEOUS SILTSTONE (4615 - 4690') = MEDIUM DARK GRAY TO DARK GRAY; UPPER VERY FINE TO LOWER FINE GRAINED; QUARTZ DOMINANT FRAMEWORK; MODERATE SORTING; SUBROUNDED TO SUBANGULAR; MODERATE SPHERICITY; IMACT AND FROSTED SURFACE FEATURES COMMON; POORLY CONSOLIDATED TO UNCONSOLIDATED; TUFFACEOUS;SILTY MATRIX MATERIAL; GRAIN SUPPORTED; SECONDARY TUFF; TRACE CARBONACEOUS MATERIAL; TRACE GREENISH GRAY GRAINS. Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/7/2014 8:40 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Tyler Harris Oil Show Rating 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #19 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 4782'MD 4884'MD Country:20 3947'TVD 4029'TVD Averages Before During After Maximum ROP (fph)45 ft/hr 123 ft/hr 44 ft/hr 284 ft/hr WOB 8 klbs 9 klbs 8 klbs 11 klbs RPM 0 rpm 57 rpm 0 rpm 77 rpm PP 1908 psi 1987 psi 1966 psi 2067 psi Mud Weight 9.8 lbs/gal 9.8 lbs/gal 9.8 lbs/gal 9.8 lbs/gal Chloride 41,000 41,000 41,000 41,000 Total Gas 68 311 89 645 C1 (ppm)13,557 60,901 16,007 128,023 C2 (ppm)88 364 87 778 C3 (ppm)17 87 32 224 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/7/2014 11:40 PM Residual Cut TUFFACEOUS SILTSTONE/SAND = MEDIUM DARK GRAY TO DARK GRAY; FIRM TO MODERATE HARDNESSS; MODERATE DEGREE OF INDURATION; TOUGH TO DENSE TENACITY; IRREGULAR TO PLANAR FRACTURE; MASSIVE TO NODULAR CUTTINGS HABBIT; OCCASIONAL PDC BIT MARKINGS; DULL TO EARTHY LUSTER; SILTY TO GRITTY TEXTURE; MASSIVE STRUCTURE WITH OCCASIONAL MICROLAMINAE; STIFF CONSISTENCY; SECONDARY FINE GRAINED QUARTZ SAND WITH TRACE LITHICS. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #20 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 4940'MD 5010'MD Country:20 4073'TVD 4128'TVD Averages Before During After Maximum ROP (fph)120 ft/hr 111 ft/hr 133 ft/hr 233 ft/hr WOB 10 klbs 10 klbs 10 klbs 72 klbs RPM 73 rpm 49 rpm 74 rpm 75 rpm PP 2105 psi 2058 psi 2102 psi 2139 psi Mud Weight 9.8 lbs/gal 9.8 lbs/gal 9.8 lbs/gal 9.8 lbs/gal Chloride 41,000 41,000 41,000 41,000 Total Gas 424 635 183 1,300 C1 (ppm)82,824 119,677 36,991 254,014 C2 (ppm)495 775 259 1,776 C3 (ppm)111 173 71 361 C4 (ppm)- - - - C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/8/2014 3:00 AM Residual Cut SANDSTONE / SAND = MEDIUM DARK GRAY TO MEDIUM GRAY; LOWER FINE TO UPPER FINE, OCCASIONAL LOWER MEDIUM AND UPPER VERY FINE; SPHERICAL TO SUB PRISMOIDAL; SUB ANGULAR TO SUB ROUND; WELL TO MODERATELY WELL SORTED; FRIABLE TO UNCONSOLIDATED; TUFFACEOUS MATRIX; MATRIX SUPPORTED; TEXTURALLY IMMATURE; COMPOSITIONALLY SUB MATURE; QUARTZ, TRANSLUCENT OR TRANSPARENT; CARBONACEOUS MATERIAL; POROSITY AND PERMEABILITY VISUALLY GOOD. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #21 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 5116'MD 5130'MD Country:20 4211'TVD 4222'TVD Averages Before During After Maximum ROP (fph)119 ft/hr 130 ft/hr 128 ft/hr 225 ft/hr WOB 10 klbs 10 klbs 12 klbs 12 klbs RPM 73 rpm 72 rpm 72 rpm 73 rpm PP 2128 psi 2107 psi 2271 psi 2144 psi Mud Weight 10.1 lbs/gal 10.1 lbs/gal 10.1 lbs/gal 10.1 lbs/gal Chloride 41,000 41,000 41,000 41,000 Total Gas 354 782 216 867 C1 (ppm)70,853 155,852 42,583 173,250 C2 (ppm)436 998 304 1,114 C3 (ppm)100 226 63 253 C4 (ppm)- 1 10 6 C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/8/2014 4:30 AM Residual Cut TUFFACEOUS SILTSTONE = FRIABLE TO VERY FRIABLE; MODERATELY TO POORLY INDURATED; CRUMBLY TO CRUNCHY TENACITY; EARTHY TO HACKLY TO PLANAR FRACTURE; MASSIVE CUTTINGS HABIT; EARTHY TO DULL LUSTER; SILTY TO GRITTY TEXTURE; MASSIVE OR LAMINAE STRUCTURE; SOME CARBONACEOUS LAMINAE W/IN SILSTONE; SANDSTONE, LOWER FINE TO UPPER FINE, SPHERICAL TO SUB PRISMOIDAL, SUB ANGULAR TO SUB ROUND, WELL TO MODERATLY WELL SORTED, FRIABLE, TUFFACEOUS MATRIX, MATRIX SUPPORTED, TEXTURALLY IMMATURE, QUARTZ, TRANSLUCENT TO TRANSPARENT. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #22 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 5210'MD 5290'MD Country:20 4282'TVD 4345'TVD Averages Before During After Maximum ROP (fph)86 ft/hr 129 ft/hr 63 ft/hr 422 ft/hr WOB 9 klbs 11 klbs 11 klbs 66 klbs RPM 16 rpm 55 rpm 71 rpm 74 rpm PP 2170 psi 2237 psi 2206 psi 2325 psi Mud Weight 10.1 lbs/gal 10.1 lbs/gal 10.1 lbs/gal 10.1 lbs/gal Chloride 41,000 41,000 41,000 41,000 Total Gas 319 738 108 1,227 C1 (ppm)63,149 141,623 19,775 235,472 C2 (ppm)215 455 115 722 C3 (ppm)86 189 24 342 C4 (ppm)5 20 9 93 C5 (ppm)4 3 2 13 Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Cut TUFFACEOUS SILTSTONE = FRIABLE TO VERY FRIABLE; MODERATELY TO POORLY INDURATED; CRUMBLY TO CRUNCHY TENACITY; EARTHY TO HACKLY TO PLANAR FRACTURE; MASSIVE CUTTINGS HABIT; EARTHY TO DULL LUSTER; SILTY TO GRITTY TEXTURE; MASSIVE OR LAMINAE STRUCTURE; SOME CARBONACEOUS LAMINAE W/IN SILSTONE; SANDSTONE, LOWER FINE TO UPPER FINE, SPHERICAL TO SUB PRISMOIDAL, SUB ANGULAR TO SUB ROUND, WELL TO MODERATLY WELL SORTED, FRIABLE, TUFFACEOUS MATRIX, MATRIX SUPPORTED, TEXTURALLY IMMATURE, QUARTZ, TRANSLUCENT TO TRANSPARENT. Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/8/2014 4:30 AM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #23 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 5313'MD 5341'MD Country:20 4363'TVD 4385'TVD Averages Before During After Maximum ROP (fph)66 ft/hr 122 ft/hr 103 ft/hr 410 ft/hr WOB 11 klbs 13 klbs 11 klbs 78 klbs RPM 71 rpm 71 rpm 71 rpm 73 rpm PP 2211 psi 2221 psi 2229 psi 2282 psi Mud Weight 10.4 lbs/gal 10.4 lbs/gal 10.4 lbs/gal 10.4 lbs/gal Chloride 41,000 41,000 41,000 41,000 Total Gas 113 368 233 474 C1 (ppm)20,648 68,818 44,690 87,492 C2 (ppm)125 440 278 562 C3 (ppm)25 102 69 124 C4 (ppm)7 3 - 11 C5 (ppm)2 3 3 6 Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Cut SAND/TUFFACEOUS SILTSTONE = MEDIUM DARK GRAY TO DARK GRAY WITH SECONDARY OLIVE GRAY HUES; QUARTZ DOMINANT FRAMEWORK; LOWER MEDIUM TO LOWER FINE GRAINED; FAIR SORTING; SUBROUNDED TO SUBANGULAR; MODERATE SPHERICITY; OCCASIONAL IMPACT SURFACE FEATURES; TUFFACEOUS MATRIX MATERIAL; ABUNDANT SILTSTONE AND TUFFACEOUS SILTSTONE; SECONDARY CARBONACEOUS MATERIAL. Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/8/2014 5:50 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Tyler Harris Gas showOil Show Rating 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report # 24 Operator: Well: API Number: Field: Date: Rig: Time: County: Depth Start End State: 20 5445'MD 5548'MD Country: 20 4467'TVD 4550'TVD Averages Before During After Maximum ROP (fph) 75 ft/hr 122 ft/hr 101 ft/hr 210 ft/hr WOB 11 klbs 10 klbs 10 klbs 12 klbs RPM 71 rpm 71 rpm 71 rpm 73 rpm PP 2431 psi 2374 psi 2371 psi 2435 psi Mud Weight 10.6 lbs/gal 10.6 lbs/gal 10.6 lbs/gal 10.6 lbs/gal Chloride 41,000 41,000 41,000 41,000 Total Gas 262 593 355 1,068 C1 (ppm) 50,758 109,536 61,276 185,216 C2 (ppm) 310 698 387 1,273 C3 (ppm) 81 158 78 258 C4 (ppm) - 2 - 10 C5 (ppm) 1 3 - 9 Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Tyler Harris Gas show Oil Show Rating Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Cuttings Analysis Saxon 147 9/8/2014 8:16 PM Cut Residual Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00 Paxton #8 Ninilchik Unit Residual Cut TUFFACEOUS SANDSTONE/TUFFACEOUS SILTSTONE = MEDIUM GRAY TO DARK GRAY; DOMINANT QUARTZ FRAMEWORK; UPPER VERY FINE TO UPPER FINE GRAINED; FAIR TO WELL SORTED; SUBROUNDED TO SUBANGULAR; MODERATE SPHERICITY; IMPACT SURFACE FEATURES FOUND ON QUARTZ GRAINS; PDC BIT MARKINGS FOUND ON TUFFACEOUS SILTSTONE CUTTINGS; UNCONSOLIDATED TO POORLY CONSOLIDATED; ABUNDANT TUFFACEOUS MATRIX MATERIAL; MATRIX SUPPORTED; SECONDARY CARBONACEOUS MATERIAL AND COAL FINES; TRACE LITHIC FRAGMENTS AND FREE DIVITRIFIED ASH. Pixler Plot 1 10 100 1000 10000 1 2 3 4 pp m DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #25 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 6358'MD 6371'MD Country:20 5182'TVD 5193'TVD Averages Before During After Maximum ROP (fph)43 ft/hr 140 ft/hr 62 ft/hr 226 ft/hr WOB 8 klbs 7 klbs 12 klbs 9 klbs RPM 27 rpm 72 rpm 26 rpm 72 rpm PP 2485 psi 2596 psi 2511 psi 2695 psi Mud Weight 11.0 lbs/gal 11.0 lbs/gal 11.0 lbs/gal 11.0 lbs/gal Chloride 48,000 48,000 48,000 48,000 Total Gas 92 795 195 909 C1 (ppm)16,296 147,191 33,242 168,123 C2 (ppm)119 1,001 219 1,136 C3 (ppm)47 227 67 255 C4 (ppm)- - - - C5 (ppm)- - 10 - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tyler Harris Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/8/2014 8:16 PM Residual Cut TUFFACEOUS SANDSTONE/TUFFACEOUS SILTSTONE = MEDIUM GRAY TO DARK GRAY; DOMINANT QUARTZ FRAMEWORK WITH SECONDARY VOLCANICS; UPPER VERY FINE TO UPPER FINE GRAINED; FAIR TO WELL SORTED; SUBROUNDED TO SUBANGULAR; MODERATE SPHERICITY; IMPACT SURFACE FEATURES FOUND ON QUARTZ GRAINS; PDC BIT MARKINGS FOUND ON TUFFACEOUS SILTSTONE CUTTINGS; UNCONSOLIDATED TO POORLY CONSOLIDATED; ABUNDANT TUFFACEOUS MATRIX MATERIAL; MATRIX SUPPORTED; SECONDARY CARBONACEOUS MATERIAL AND COAL FINES; TRACE LITHIC FRAGMENTS. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #26 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 6390'MD 6410'MD Country:20 5182'TVD 5193'TVD Averages Before During After Maximum ROP (fph)43 ft/hr 140 ft/hr 62 ft/hr 226 ft/hr WOB 8 klbs 7 klbs 12 klbs 9 klbs RPM 27 rpm 72 rpm 26 rpm 72 rpm PP 2485 psi 2596 psi 2511 psi 2695 psi Mud Weight 11.0 lbs/gal 11.0 lbs/gal 11.0 lbs/gal 11.0 lbs/gal Chloride 48,000 48,000 48,000 48,000 Total Gas 92 795 195 909 C1 (ppm)16,296 147,191 33,242 168,123 C2 (ppm)119 1,001 219 1,136 C3 (ppm)47 227 67 255 C4 (ppm)- - - - C5 (ppm)- - 10 - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Cut TUFFACEOUS SANDSTONE/TUFFACEOUS SILTSTONE = MEDIUM LIGHT GRAY TO MEDIUM DARK GRAY; QUARTZ FRAMEWORK WITH SECONDARY VOLCANIC LITHICS; UPPER FINE TO UPPER VERY FINE GRAINED; MODERATE SORTING; SUBROUNDED TO SUBANGULAR; MODERATE SPHERICITY; POOR CONSOLIDATION TO UNCONSOLIDATED; TUFFACEOUS MATRIX MATERIAL; GRAIN SUPPORTED. Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/9/2014 10:49 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Tyler Harris Gas showOil Show Rating 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #27 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 7696'MD 7764'MD Country:20 6447'TVD 6514'TVD Averages Before During After Maximum ROP (fph)132 ft/hr 135 ft/hr 100 ft/hr 245 ft/hr WOB 12 klbs 11 klbs 10 klbs 22 klbs RPM 73 rpm 73 rpm 72 rpm 76 rpm PP 2858 psi 2873 psi 2877 psi 2997 psi Mud Weight 11.1 lbs/gal 11.1 lbs/gal 11.3 lbs/gal 11.1 lbs/gal Chloride 52,000 52,000 52,000 52,000 Total Gas 203 1,488 790 2,305 C1 (ppm)41,343 269,341 145,312 412,831 C2 (ppm)261 1,892 927 2,942 C3 (ppm)59 420 193 685 C4 (ppm)22 15 5 35 C5 (ppm)- 10 0 39 Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Cut TUFFACEOUS SANDSTONE = MEDIUM GRAY TO DARK GRAY; UPPER VERY FINE TO UPPER MEDIUM GRAINED; MODERATE SPHERICITY; SUBROUNDED TO ANGULAR; UNCONSOLIDATED TO POOR CONSOLIDATION; TUFFACEOUS TO SILTY MATRIX MATERIAL; QUARTZ DOMINANT FRAMEWORK; POROSITY AND PERMEABILITY VISUALLY GOOD; SECONDARY SILT AND TUFFACEOUS SILTSTONE. Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/13/2014 11:10 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #28 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 8030'MD 8080'MD Country:20 6776'TVD 6825'TVD Averages Before During After Maximum ROP (fph)37 ft/hr 53 ft/hr 63 ft/hr 90 ft/hr WOB 9 klbs 8 klbs 6 klbs 99 klbs RPM 0 rpm 53 rpm 74 rpm 96 rpm PP 2789 psi 2908 psi 2979 psi 3039 psi Mud Weight 11.2 lbs/gal 11.2 lbs/gal 11.2 lbs/gal 11.2 lbs/gal Chloride 65,000 65,000 65,000 65,000 Total Gas 84 137 89 237 C1 (ppm)18,486 29,767 19,517 51,971 C2 (ppm)99 200 128 335 C3 (ppm)32 45 41 84 C4 (ppm)- 10 24 33 C5 (ppm)- 6 11 17 Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/14/2014 7:40 PM Residual Cut TUFFACEOUS SANDSTONE = LIGHT GRAY TO MEDIUM GRAY; UPPER VERY FINE TO UPPER FINE GRAINED; SUBROUNDED TO SUBANGULAR; MODERATE TO WELL SORTED; POOR TO MODERATE CONSOLIDATION; ABUNDANT TUFFACEOUS MATRIX; QUARTZ DOMINANT FRAMEWORK WITH SECONDARY VOLCANIC FRAGMENTS AND CARBONACEOUS MATERIAL; SECONDARY TUFFACEOUS SILTSTONE; POROSITY AND PERMEABILITY VISUALLY FAIR TO GOOD. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #29 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 8182'MD 8328'MD Country:20 6926'TVD 7068'TVD Averages Before During After Maximum ROP (fph)72 ft/hr 69 ft/hr 69 ft/hr 159 ft/hr WOB 10 klbs 11 klbs 10 klbs 15 klbs RPM 73 rpm 73 rpm 73 rpm 76 rpm PP 2960 psi 2918 psi 2980 psi 3200 psi Mud Weight 11.2 lbs/gal 11.2 lbs/gal 11.2 lbs/gal 11.2 lbs/gal Chloride 65,000 65,000 65,000 65,000 Total Gas 124 170 224 533 C1 (ppm)23,462 31,128 1,041 93,988 C2 (ppm)153 188 7 563 C3 (ppm)30 41 5 102 C4 (ppm)- 6 - 35 C5 (ppm)2 5 - 49 Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/15/2014 3:30 AM Residual Cut TUFFACEOUS SANDSTONE = LIGHT GRAY TO MEDIUM GRAY; UPPER VERY FINE TO UPPER MEDIUM GRAINED WITH TRACE LOWER COARSE GRAINS; SUBROUNDED TO SUB ANGULAR; MODERATE TO WELL SORTED; POOR TO MODERATE CONSOLIDATION; ABUNDANT TUFFACEOUS MATRIX AND TUFF; QUARTZ DOMINANT FRAMEWORK WITH SECONDARY LITHIC FRAGMENTS AND CARBONACEOUS MATERIAL; SECONDARY TUFFACEOUS SILTSTONE; POROSITY AND PERMEABILITY VISUALLY FAIR TO GOOD. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #31 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 8560'MD 8680'MD Country:20 7296'TVD 7414'TVD Averages Before During After Maximum ROP (fph)95 ft/hr 64 ft/hr 80 ft/hr 122 ft/hr WOB 8 klbs 7 klbs 9 klbs 15 klbs RPM 73 rpm 72 rpm 72 rpm 74 rpm PP 2901 psi 2818 psi 2907 psi 2983 psi Mud Weight 11.1 lbs/gal 11.1 lbs/gal 11.1 lbs/gal 11.1 lbs/gal Chloride 64,000 64,000 64,000 64,000 Total Gas 294 270 263 634 C1 (ppm)57,937 54,587 53,645 124,463 C2 (ppm)363 356 342 880 C3 (ppm)64 73 63 184 C4 (ppm)5 11 20 45 C5 (ppm)5 12 8 26 Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Fluorescence Cuttings Analysis Tyler Harris Gas showOil Show Rating Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/15/2014 4:45 PM Residual Cut TUFFACEOUS SANDSTONE = LIGHT GRAY TO MEDIUM LIGHT GRAY; UPPER FINE TO UPPER VERY FINE GRAINED WITH RARE VERY COARSE GRAINS; MODERATE TO POOR SPHERICITY; SUBANGULAR TO ANGULAR; MODERATE TO POORLY SORTED; FRIABLE TO POORLY CONSOLIDATED; ABUNDANT TUFFACEOUS MATRIX; MATRIX SUPPORTED; DOMINANT QUARTZ FRAMEWORK WITH VOLCANIC LITHICS AND TUFF; VERY COARSE QUARTZ IS TRANSLUCENT WITH FROSTED TEXTURE AND SUBANGULAR; POROSITY AND PERMEABILITY FAIR TO GOOD. 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #32 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 8708'MD 8742'MD Country:20 7442'TVD 7476'TVD Averages Before During After Maximum ROP (fph)98 ft/hr 97 ft/hr 66 ft/hr 224 ft/hr WOB 10 klbs 12 klbs 8 klbs 105 klbs RPM 72 rpm 72 rpm 72 rpm 73 rpm PP 2950 psi 2939 psi 2912 psi 3054 psi Mud Weight 11.1 lbs/gal 11.1 lbs/gal 11.1 lbs/gal 11.1 lbs/gal Chloride 63,000 63,000 63,000 63,000 Total Gas 256 339 227 582 C1 (ppm)52,176 64,916 44,474 109,161 C2 (ppm)338 440 323 730 C3 (ppm)62 95 63 173 C4 (ppm)16 12 9 23 C5 (ppm)- 1 3 5 Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Cut TUFFACEOUS SANDSTONE = LIGHT GRAY TO MEDIUM GRAY; UPPER VERY FINE TO UPPER MEDIUM GRAINED WITH TRACE LOWER COARSE GRAINS; SUBROUNDED TO SUBANGULAR; MODERATE TO WELL SORTED; POOR TO WELL CONSOLIDATED; ABUNDANT TUFFACEOUS MATRIX AND TUFF; QUARTZ DOMINANT FRAMEWORK WITH SECONDARY LITHIC FRAGMENTS AND CARBONACEOUS MATERIAL; TRACE TO RARE LIGHT GREENISH GRAY GRAINS; POROSITY PERMEABILITY VISUALLY FAIR TO GOOD. Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/15/2014 9:30 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report # 33 Operator: Well: API Number: Field: Date: Rig: Time: County: Depth Start End State: 20 8765'MD 8815'MD Country: 20 7498'TVD 7548'TVD Averages Before During After Maximum ROP (fph) 66 ft/hr 64 ft/hr 70 ft/hr 83 ft/hr WOB 8 klbs 7 klbs 7 klbs 15 klbs RPM 72 rpm 72 rpm 72 rpm 74 rpm PP 2918 psi 2973 psi 3043 psi 3216 psi Mud Weight 11.1 lbs/gal 11.1 lbs/gal 11.1 lbs/gal 11.1 lbs/gal Chloride 63,000 63,000 63,000 63,000 Total Gas 200 249 267 339 C1 (ppm) 39,112 49,507 53,188 68,399 C2 (ppm) 283 336 359 485 C3 (ppm) 55 73 65 104 C4 (ppm) 7 1 16 7 C5 (ppm) 2 3 5 12 Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Tollef Winslow Gas show Oil Show Rating Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Cuttings Analysis Saxon 147 9/15/2014 10:30 PM Cut Residual Fluorescence Hilcorp Alaska, LLC. 50-133-20638-00-00 Paxton #8 Ninilchik Unit Residual Cut TUFFACEOUS SANDSTONE = LIGHT GRAY TO MEDIUM GRAY; UPPER VERY FINE TO UPPER MEDIUM GRAINED WITH TRACE LOWER COARSE GRAINS; SUBROUNDED TO SUBANGULAR; MODERATE TO WELL SORTED; POOR TO WELL CONSOLIDATED; ABUNDANT TUFFACEOUS MATRIX AND TUFF; QUARTZ DOMINANT FRAMEWORK WITH SECONDARY LITHIC FRAGMENTS AND CARBONACEOUS MATERIAL; TRACE TO RARE LIGHT GREENISH GRAY GRAINS; POROSITY PERMEABILITY VISUALLY FAIR TO GOOD. Pixler Plot 1 10 100 1000 10000 1 2 3 4 pp m DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Hydrocarbon Show Report #34 Operator: Well:API Number Field: Date: Rig: Time: County: Depth Start End State:20 9034'MD 9105'MD Country:20 7757'TVD 7826'TVD Averages Before During After Maximum ROP (fph)71 ft/hr 62 ft/hr 69 ft/hr 94 ft/hr WOB 10 klbs 11 klbs 8 klbs 111 klbs RPM 72 rpm 72 rpm 71 rpm 74 rpm PP 3027 psi 3085 psi 3029 psi 3217 psi Mud Weight 11.1 lbs/gal 11.1 lbs/gal 11.1 lbs/gal 11.1 lbs/gal Chloride 63,000 63,000 63,000 63,000 Total Gas 348 295 181 737 C1 (ppm)67,099 56,531 37,214 136,132 C2 (ppm)416 353 284 871 C3 (ppm)87 76 71 166 C4 (ppm)6 2 18 8 C5 (ppm)- - - - Lithology Odor Amount Type Amount Amount Distribution Intensity Color Color Intensity Color Color Intesity Color Color Comments Report by: Residual Cut TUFFACEOUS SANDSTONE = LIGHT GRAY TO MEDIUM GRAY; UPPER FINE TO LOWER FINE WITH SOME UPPER VERY FINE AND COARSE GRAINS; SPERICAL TO SUB DISCOIDAL; SUB ANGULAR TO SUB ROUND; WELL TO MODERATELY WELL SORTED; FRIABLE WITH SOME UNCONSOLIDATED; TUFFACEOUS MATRIX; MATRIX SUPPORTED; TEXTURALLY IMMATURE; COMPOSITIONALLY SUB MATURE; QUARTZ, TRANSLUCENT TO TRANSPARENT; BLACK CARBONACEOUS MATERIAL; PALE YELLOW ORANGE VOLCANICS; POROSITY AND PERMEABILITY VISUALLY FAIR TO GOOD. Hilcorp Alaska, LLC. 50-133-20638-00-00Paxton #8 Ninilchik Unit Saxon 147 9/15/2014 10:30 PM Cut Free Oil in Mud Kenai Peninsula Borough Alaska United States of America Stain Fluorescence Cut Fluorescence Residual Fluorescence Cuttings Analysis Tollef Winslow Gas showOil Show Rating 1 10 100 1000 10000 1234 pp m Pixler Plot DRY GAS GAS CONDENSATE OIL NON PRODUCTIVE C1/C2 C1/C4 C1/C5 C1/C3 Paxton #8 28 6 DAILY REPORTS Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Barber, McDowell DATE Sep 19, 2014 DEPTH 9310' PRESENT OPERATION Pressure testing casing TIME 24:00 YESTERDAY 9310' 24 HOUR FOOTAGE 0' CASING INFORMATION 16" @ 135.5" 9 5/8" @ 3548' 5 1/2" @ 9269' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9184.14' 7.38 17.75 7913.00' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 379u CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG NA PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Loaded centralizers to rig floor, loaded racks with casing, made up shoe track and float equipment and Baker lock threads, filled test floats, ran 5 1/2 inch casing, used API modified dope, torqued, at 13,800, EOT = 3000’, continued running 5 ½ inch casing to 9277’, filled pipe every 10 stands and circulated bottoms up at 3650’, 6750’, and 9265’ made up casing torque at 10300/2000 PSV, calculated bbl displacement of 58.8, measured 52.1, with a difference of 6.7 bbls, picked up hanger landing joint, landed casing, laid down casing running tools, picked up Baker Hughes cementing head, tied into rig stand pipe, rigged up cement head, conditioned mud and circulated, staged pumps to 7 bpm, conditioned mud at 700 psi, held safety meeting, dropped bottom plug, pumped 5 bbls water, loaded top plug, pressure tested surface lines to 5000 psi, pumped 168 bbls of lead cement, 13.5 ppg, 160 bbls of tail cement, 15.7 ppg, displaced with KCL 213.5 bbls, Canrig began rigging down. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2342.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Barber, McDowell DATE Sep 18, 2014 DEPTH 9310' PRESENT OPERATION Rig up for casing TIME 24:00 YESTERDAY 9310' 24 HOUR FOOTAGE 0' CASING INFORMATION 16" @ 135.5 9 5/8" @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9184.14' 7.38 17.75 7913.00' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12/0.6627 3554' 9310' 5756' 105.14 1-2-CT-G-X-I-NO TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 11.0 VIS 83 PV 20 YP 29 FL 4.9 Gels 8/14/21 CL- 59000 FC 1/1 SOL 15 SD 0.1 OIL 3/82 MBT 11 pH 10.0 Ca+ 60 Alk 1.1 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Laid down stabilizers, float sub, drained motor, broke and graded bit, laid down motor and jars, cleaned the rig floor, laid down third party tools, serviced the top drive and draw works, made up bit, tripped in hole to 5620’, filled pipe, performed flow check, no flow, pumped slug, tripped out of hole, laying down drill pipe from 5620’, performed flow checks at 3540’ and 150’, calculated 39.3 bbls, measured 40 bbls, filled hole, picked up two joints of drill pipe and broke out tourqed up saver sub, pulled wear bushings, did a dummy ran hanger to record rotary Kelly bushing, changed out upper pipe rams to 5 ½”, set test plug, rigged up test equipment, flooded BOPs, tested upper rams at 250 low and 3500 high, rigged down test equipment, pulled test plug, held safety meeting for rigging up casing running tool, service loop, and hydraulic elevators. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2342.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Barber, McDowell DATE Sep 17, 2014 DEPTH 9310' PRESENT OPERATION Laying down BHA TIME 24:00 YESTERDAY 9310' 24 HOUR FOOTAGE 0' CASING INFORMATION 16" @ 135.5' 9 5/8" @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9184.14' 7.38 17.75 7913.00' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 110 VIS 62 PV 23 YP 35 FL 4.8 Gels 9/15/22 CL- 59000 FC 1/1 SOL 15 SD 0.1 OIL 3/82 MBT 11 pH 10.1 Ca+ 60 Alk 1.2 MWD SUMMARY INTERVAL 3554' TO 9310' TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS 471u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Slipped and cut 80’ of drilling line, reset com, recalibrated hookload tripped in the hole from 3514’ to 9310’, washed last stand to bottom, hole fill of 3 bbls, filled pipe at 5200’, 6750’, 5200’, conditioned mud and circulated, pumped sweep, 471 units of gas at bottoms up, conditioned mud and circulated, took survey on bottom, checked for flow, no flow, tripped out of hole from 9308’ to 7660’, checked for flow at 7660’ and 5820’, no flow, monitored well at 5820’, pre job safety meeting for laying down drill pipe and readying trailers for drill pipe, drop mud dog pipe wiper, tripped out of hole from 5820’ to 1100’ laying down drill pipe, stood back 11 stands of drill pipe, 19 joints of heavy weight drill pipe, and jars in mast, hole fill of 4.8 bbls, held safety meeting for laying down flex monel and removing radioactive sources, downloaded MWD tools, laid down MWD tools. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Barber, McDowell DATE Sep 16, 2014 DEPTH 9310' PRESENT OPERATION Wiper Trip TIME 24:00 YESTERDAY 8864' 24 HOUR FOOTAGE 446' CASING INFORMATION 16" @ 135.5' 9 5/8" @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9184.14' 7.38 17.75 7913.00' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 216.1 @ 8928' 5.5 @ 9171' 78.7 33.7 FT/HR SURFACE TORQUE 13339 @ 8907' 10649 @ 8998' 11713.7 12050.8 AMPS WEIGHT ON BIT 17 @ 9309' 1 @ 9170' 11.2 17.0 KLBS ROTARY RPM 74 @ 9044' 63 @ 9228' 71.3 70.4 RPM PUMP PRESSURE 3217 @ 9066' 2762 @ 9229' 3089.7 3080.6 PSI DRILLING MUD REPORT DEPTH MW 11.0 VIS 57 PV 23 YP 34 FL 4.8 Gels 9/15/22 CL- 59000 FC 1/1 SOL 15 SD 0.1 OIL 3/82 MBT 11 pH 10.1 Ca+ 60 Alk 1.1 MWD SUMMARY INTERVAL 3554' TO 9310' TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 737 @ 9053' 41 @ 9191' 199.9 TRIP GAS NA CUTTING GAS 0 @ 9310' 0 @ 9310' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 136658 @ 8933' 8011 @ 9191' 39143.7 CONNECTION GAS HIGH NA ETHANE (C-2) 963 @ 9205' 55 @ 9191' 262.9 AVG NA PROPANE (C-3) 241 @ 9204' 15 @ 9290' 64.9 CURRENT NA BUTANE (C-4) 53 @ 8925' 0 @ 9246' 7.0 CURRENT BACKGROUND/AVG 0u PENTANE (C-5) 6 @ 9208' 0 @ 9246' 0.2 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 8708'-8742'; 8765'-8815'; 9034'-9105' Tuffaceous sandstone, sand 582u, 339u, 737u See Show Reports #32-34 LITHOLOGY Tyonek Formation PRESENT LITHOLOGY Tuffaceous sandstone 50%, sand 30%, tuffaceous siltstone 20% DAILY ACTIVITY SUMMARY Drilled from 8864’ to 9200’, WOB 14, RPM 75, GPM 480, SPP 3000, P/U 160, S/O 100, ROT 130, TQ on 12500, TQ off 10000, ROP 70, MTR RPM 144, DIFF 375, drilled from 9200’ to 9310’, WOB 14, RPM 75, GPM 480, SPP 300, P/U 175, S/O 105, ROT 135, TQ on 11400, TQ off 9800, ROP 114, MTR RPM 150, DIFF 435, reached TD at 9310’, racked back on stand, circulated, checked for flow, now flow, tripped out of hole from 9258’ to 9046’, back reamed from 9046’ to 8000’, drill pipe torqued up, broke connection with tongs, pulled with elevators to 3514’, reamed tight spot at 7782’, hole fill of 7.5 bbls, serviced top drive, drawworks, crown and blocks, slipped and cut 75’ of drilling line, reset com, recalibrated hookload. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Barber, Mc Dowell DATE Sep 15, 2014 DEPTH 8864' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 8133' 24 HOUR FOOTAGE 731' CASING INFORMATION 16" @ 135.5' 9 5/8" @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8811.39' 9.2 19.63 7544.06' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 964.4 @ 8858' 1.2 @ 8145' 73.2 64.9 FT/HR SURFACE TORQUE 14272 @ 8475' 1402 @ 8142' 10842.1 11237.3 AMPS WEIGHT ON BIT 105 @ 8733' 1 @ 8392' 9.4 9.2 KLBS ROTARY RPM 76 @ 8147' 1 @ 8139' 70.8 73.1 RPM PUMP PRESSURE 3215 @ 8800' 2567 @ 8392' 2914.6 2999.3 PSI DRILLING MUD REPORT DEPTH MW 11.1 VIS 50 PV 20 YP 33 FL 5.4 Gels 9/18/33 CL- 63000 FC 1/1 SOL 15 SD 0.1 OIL 3/82 MBT 10 pH 10.1 Ca+ 60 Alk 1.2 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1153 @ 8478' 10 @ 8146' 223.4 TRIP GAS NA CUTTING GAS 0 @ 8864' 0 @ 8864' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 226780 @ 8479' 1922 @ 8146' 43592.9 CONNECTION GAS HIGH NA ETHANE (C-2) 1681 @ 8478' 13 @ 8146' 290.8 AVG NA PROPANE (C-3) 626 @ 8349' 3 @ 8146' 69.0 CURRENT NA BUTANE (C-4) 45 @ 8615' 0 @ 8421' 6.3 CURRENT BACKGROUND/AVG 160u PENTANE (C-5) 48 @ 8233' 0 @ 8421' 4.5 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 8030'-8080'; 8182'- 8328'; 8500'-8540'; 8560'-8600' Tuffaceous sandstone, sand 237u; 533u; 434u; 634u See Show Reports #28-31 LITHOLOGY Tyonek Formation PRESENT LITHOLOGY Tuffaceous sandstone 80%, sand 20% DAILY ACTIVITY SUMMARY Replaced saver sub and clamp, drilled from 8133’ to 8298’, WOB 14, RPM 75, GPM 480, SPP 2800, P/U 155, S/O 99, ROT 121, TQ on 11000, TQ off 8000, ROP 70 through zones of interest, continued drilling to 8375’, serviced rig, installed saver sub and clamp, continued drilling to 8421’, repaired rig, broke out of saver sub, checked threads, re-tourqued saver sub to 23000 max, continued drilling to 8864’. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Barber, McDowell DATE Sep 14, 2014 DEPTH 8133' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 7745' 24 HOUR FOOTAGE 388' CASING INFORMATION 16" @ 135.5' 9 5/8 @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8066.83' 11.08 23.16 6811.83' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 256.1 @ 7895' 0.2 @ 7994' 77.1 64.9 FT/HR SURFACE TORQUE 12091 @ 7904' 630 @ 7993' 8691.1 11149.7 AMPS WEIGHT ON BIT 98 @ 8048' 1 @ 8039' 10.3 6.9 KLBS ROTARY RPM 95 @ 8033' 1 @ 8005' 60.3 75.3 RPM PUMP PRESSURE 3150 @ 7864' 1402 @ 7994' 2921.8 2855.5 PSI DRILLING MUD REPORT DEPTH MW 11.2 VIS 55 PV 22 YP 37 FL 5.1 Gels 10/20/26 CL- 65000 FC 1/1 SOL 15 SD 0.1 OIL 4/81 MBT 10 pH 10.2 Ca+ 70 Alk 1.4 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1974 @ 7760' 17 @ 8092' 277.7 TRIP GAS NA CUTTING GAS 0 @ 8133' 0 @ 8133' 0.0 WIPER GAS 105u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 350423 @ 7760' 575 @ 8004' 52333.0 CONNECTION GAS HIGH NA ETHANE (C-2) 2418 @ 7759' 3 @ 8004' 332.2 AVG NA PROPANE (C-3) 579 @ 7758' 1 @ 8004' 73.2 CURRENT NA BUTANE (C-4) 61 @ 8109' 0 @ 7747' 8.5 CURRENT BACKGROUND/AVG 50 PENTANE (C-5) 38 @ 7753' 0 @ 8038' 3.8 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek Formation PRESENT LITHOLOGY Sand 90%, tuffaceous sandstone 10% DAILY ACTIVITY SUMMARY Drilled from 7745’ to 7986’, WOB 10 RPM 75, GPM 475, SPP 2600, TQ on 10900, TQ off 7800, P/U 150, S/O 98, ROT 119, MTR RPM 144, DIFF 375, pumped high viscosity sweep, circulated hole clean, 480 GPM, 2700 PSI, tripped out of hole for wiper trip from 7986’ to 6400’, pulled tight at 7294’ and 6430’, serviced rig, repaired rig and troubleshot problem with top drive, changed pressure valve, adjusted to correct setting, tripped in hole from 6400’ to 7986’, checked for flow, no flow, and filled pipe at 7545’, washed down last stand, drilled from 7992’ to 8025’, PU 150, SLK 98, ROT 120, WOB 12, RPM 75, GPM 475, MTR RPM 145, SPP 2675, TQ on 11800, TQ off 8500, ROP 75, DIFF 275, drilled from 8025’ to 8109’, repaired rig and replaced saber sub, continued drilling to 8133’. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Barber, McDowell DATE Sep 13, 2014 DEPTH 7745' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 7241' 24 HOUR FOOTAGE 504' CASING INFORMATION 16" @ 135.5 9 5/8 @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7693.68' 10.83 18.67 6444.84' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 245.4 @ 7744' 0.5 @ 7370' 90.0 178.1 FT/HR SURFACE TORQUE 11240 @ 7742' 967 @ 7377' 8979.0 11192.7 AMPS WEIGHT ON BIT 95 @ 7613' 0 @ 7497' 10.7 13.1 KLBS ROTARY RPM 86 @ 7299' 2 @ 7442' 65.1 71.7 RPM PUMP PRESSURE 2996 @ 7742' 2196 @ 7377' 2743.9 2979.1 PSI DRILLING MUD REPORT DEPTH MW 11.1 VIS 60 PV 26 YP 43 FL 5 Gels 12/21/29 CL- 52000 FC 1/1 SOL 14 SD 0.1 OIL 2/84 MBT 9 pH 10.1 Ca+ 60 Alk 1.6 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 2304 @ 7721' 17 @ 7288' 322.5 TRIP GAS NA CUTTING GAS 0 @ 7745' 0 @ 7745' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 412831 @ 7721' 3686 @ 7287' 61796.0 CONNECTION GAS HIGH NA ETHANE (C-2) 2941 @ 7721' 22 @ 7604' 397.6 AVG NA PROPANE (C-3) 685 @ 7723' 0 @ 7625' 103.0 CURRENT NA BUTANE (C-4) 34 @ 7699' 0 @ 7580' 4.1 CURRENT BACKGROUND/AVG 119u PENTANE (C-5) 29 @ 7745' 0 @ 7557' 1.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 7695'-7785' Sand 2306u See Show Report #27 LITHOLOGY Tyonek Formation PRESENT LITHOLOGY Sand DAILY ACTIVITY SUMMARY Drilled from 7238’ to 7302’, serviced rig, changed out saver sub and clamp, drilled from 7302’ to 7380’, WOB 8, RPM 75, GPM 485, SPP 2700, P/U 130, S/O 95, ROT 110, TQ on 11000, TQ off 7800, ROP 65, MTR RPM 144, DIFF 250, conditioned mud and circulated, checked for flow, no flow, drilled from 7380 to 7426, PU 135, SLK 95, ROT 118, WOB 11, RPM 75, MTR RPM 115, GPM 475, TQ on 9800, TQ off 7500, ROP 100, DIFF 200, SPP 2450, repaired rig, attempted to break out of saver sub, changed out saver sub, drilled to 7745’, no connection gasses observed in past 24 hours. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Lott, Barber DATE Sep 12, 2014 DEPTH 7241' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6716' 24 HOUR FOOTAGE 525' CASING INFORMATION 16" @ 135.5' 9 5/8 @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7197.77' 14.45 20.28 5960.81' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 234.5 @ 7069' 0.2 @ 6848' 68.5 93.7 FT/HR SURFACE TORQUE 13011 @ 7222' 1018 @ 7204' 6010.9 9274.8 AMPS WEIGHT ON BIT 86 @ 7055' 0 @ 6870' 9.5 9.2 KLBS ROTARY RPM 76 @ 6902' 0 @ 6785' 46.2 70.8 RPM PUMP PRESSURE 2849 @ 7218' 2314 @ 6748' 2570.9 2771.8 PSI DRILLING MUD REPORT DEPTH MW 11.0 VIS 58 PV 23 YP 38 FL 5.2 Gels 12/21/26 CL- 52000 FC 1/1 SOL 14 SD 0.1 OIL 4/82 MBT 9 pH 10.1 Ca+ 60 Alk 1.6 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 522 @ 7081' 19 @ 7181' 109.0 TRIP GAS NA CUTTING GAS 0 @ 7241' 0 @ 7241' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 103679 @ 7080' 319 @ 6722' 20007.6 CONNECTION GAS HIGH NA ETHANE (C-2) 547 @ 7080' 1 @ 6722' 124.1 AVG NA PROPANE (C-3) 148 @ 6866' 0 @ 6965' 29.2 CURRENT NA BUTANE (C-4) 12 @ 7116' 0 @ 7139' 0.9 CURRENT BACKGROUND/AVG 27u PENTANE (C-5) 58 @ 7111' 1 @ 7045' 4.1 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek Formation PRESENT LITHOLOGY Tuffaceous siltstone 50%, tuffaceous sandstone 50% DAILY ACTIVITY SUMMARY Drilled from 6722’ to 6840’, WOB 5, RPM 80, GPM 475, SPP 2550, P/U 125, S/O 85, ROT 100, TQ on 10000, TQ off 7500, ROP 65, MTR RPM 142, DIFF 125, slid 80’ at 180, slid from 6840’ to 6900’,P/U 125, SLK 85, ROT 100, WOB 8, SPP 2550, drilled from 6900’ to 7057’, P/U 125, SLK 90, ROT 105, WOB 11, SPP 2675, serviced rig, continued drilling to 7241’, no connection gasses observed in last 24 hours. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Lott, Barber DATE Sep 11, 2014 DEPTH 6716' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6419' 24 HOUR FOOTAGE 297' CASING INFORMATION 16" @ 135.5' 9 5/8 @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6639.16' 26.21 22.11 5431.15' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 348.8 @ 6622' 0.7 @ 6528' 72.1 72.7 FT/HR SURFACE TORQUE 11054 @ 6467' 752 @ 6501' 4671.1 0.0 AMPS WEIGHT ON BIT 79 @ 6622' 1 @ 6420' 12.9 4.9 KLBS ROTARY RPM 101 @ 6680' 1 @ 6634' 38.5 0.0 RPM PUMP PRESSURE 2750 @ 6446' 32 @ 6419' 2523.3 2479.2 PSI DRILLING MUD REPORT DEPTH MW 11.0 VIS 67 PV 23 YP 47 FL 5.3 Gels 16/26/33 CL- 39000 FC 1/1 SOL 14 SD 0.1 OIL 4/82 MBT 9 pH 10.3 Ca+ 70 Alk 1.8 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 820 @ 6486' 18 @ 6701' 170.8 TRIP GAS NA CUTTING GAS 0 @ 6716' 0 @ 6716' 0.0 WIPER GAS 305u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 162357 @ 6486' 3571 @ 6701' 32716.8 CONNECTION GAS HIGH NA ETHANE (C-2) 681 @ 6485' 20 @ 6701' 176.3 AVG NA PROPANE (C-3) 263 @ 6487' 6 @ 6420' 61.2 CURRENT NA BUTANE (C-4) 7 @ 6560' 0 @ 6590' 0.6 CURRENT BACKGROUND/AVG 19u PENTANE (C-5) 0 @ 6716' 0 @ 6716' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6390'-6410' Sand, tuffaceous sandstone 909u See Show Report #26 LITHOLOGY Tyonek Formation PRESENT LITHOLOGY Tuffaceous Siltstone 100% DAILY ACTIVITY SUMMARY Logged from 3642’ to 1720’ at 180’ per hour, continued to log out of hole to 1530’, tripped in hole from 1530’ to 6419’, checked for flow, no flow, filled pipe at 3577’, 5015’, and 6376’, drilled from 6419’ to 6716’. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Lott, Barber DATE Sep 10, 2014 DEPTH 6419' PRESENT OPERATION Mad pass TIME 24:00 YESTERDAY 6414' 24 HOUR FOOTAGE 5' CASING INFORMATION 16" @ 135.5' 9 5/8" @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6329.64' 30.42 25.35 5157.67' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 32.8 @ 6414' 1.3 @ 6416' 19.7 0.0 FT/HR SURFACE TORQUE 3548 @ 6414' 3503 @ 6418' 1410.5 0.0 AMPS WEIGHT ON BIT 59 @ 6419' 5 @ 6415' 20.1 59.3 KLBS ROTARY RPM 57 @ 6418' 5 @ 6414' 12.6 0.0 RPM PUMP PRESSURE 2559 @ 6414' 32 @ 6419' 2523.6 32.9 PSI DRILLING MUD REPORT DEPTH MW 11.2 VIS 80 PV 24 YP 48 FL 5.3 Gels 16/29/37 CL- 42000 FC 1/1 SOL 14 SD 0.1 OIL 3/83 MBT 8 pH 10.6 Ca+ 70 Alk 2 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 142 @ 6419' 92 @ 6418' 133.2 TRIP GAS NA CUTTING GAS 0 @ 6419' 0 @ 6419' 0.0 WIPER GAS 645u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) - @ - - @ - CONNECTION GAS HIGH NA ETHANE (C-2) - @ - - @ - AVG NA PROPANE (C-3) - @ - - @ - CURRENT NA BUTANE (C-4) - @ - - @ - CURRENT BACKGROUND/AVG 0u PENTANE (C-5) - @ - - @ - HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek Formation PRESENT LITHOLOGY Sand 90%, Tuffaceous sandstone 10% DAILY ACTIVITY SUMMARY Pumped high viscosity sweep, circulated hole clean, 500 gpm, SPP 2450, 25% increase in cuttings, pulled out of hole from 6419’ to 5100’, tight at 5735’ 30K, over/reamed 5604’ to 5573’, 5469’ to 5437’, 5338’, RPM 30, GPM 400, SPP 1700, washed and back reamed out of hole from 5050’ to 4260’, continued to trip out of hole from 4260’ to 3487’, slipped and cut off 27’ of drilling line, performed flow check and monitored well, no flow, tripped in hole from 4260’ to 6371’, conditioned mud and circulated bottoms up, max gas of 645 units, repaired rig/ #1 mud pump suction cap leaking, attempted to weld crack and stop leak, tripped out of hole to casing shoe at 3548’ due to mud pump repair, performed mad pass out of hole. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Lott, Yessak DATE Sep 09, 2014 DEPTH 6414' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5689' 24 HOUR FOOTAGE 725' CASING INFORMATION 16" @ 135.5' 9 5/8 @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6329.64' 30.42 25.35 5157.67' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 251.0 @ 6041' 2.8 @ 6322' 87.0 32.7 FT/HR SURFACE TORQUE 11140 @ 5732' 816 @ 6065' 6072.2 3548.5 AMPS WEIGHT ON BIT 81 @ 6062' 0 @ 6187' 9.3 5.2 KLBS ROTARY RPM 133 @ 6357' 1 @ 6352' 52.9 5. RPM PUMP PRESSURE 2705 @ 6291' 2266 @ 6193' 2494.4 2559.5 PSI DRILLING MUD REPORT DEPTH MW 11.0 VIS 62 PV 22 YP 44 FL 5.4 Gels 15/26/34 CL- 48000 FC 1/1 SOL 14 SD 0.1 OIL 3/83 MBT 8 pH 10.5 Ca+ 80 Alk 3 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 908 @ 6367' 39 @ 6347' 236.4 TRIP GAS NA CUTTING GAS 0 @ 6414' 0 @ 6414.' 0.0 WIPER GAS 143u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 168122 @ 6367' 5551 @ 6348' 45287.1 CONNECTION GAS HIGH NA ETHANE (C-2) 1136 @ 6367' 45 @ 6348' 297.3 AVG NA PROPANE (C-3) 323 @ 6394' 14 @ 5724' 76.1 CURRENT NA BUTANE (C-4) 27 @ 6252' 0 @ 6034' 2.6 CURRENT BACKGROUND/AVG 84u PENTANE (C-5) 34 @ 6393' 0 @ 6187' 3.3 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6358'-6393' Sand, tuffaceous sandstone 909u See Show Report #25 LITHOLOGY Tyonek Formation PRESENT LITHOLOGY Sand 70%, tuffaceous sandstone 20%, tuffaceous siltstone 10% DAILY ACTIVITY SUMMARY Drilled from 5342’ to 5692’ WOB 10, RPM 80, GPM 500, SPP 2400, P/U 125, S/O 90, ROT 108, TQ on 10500, TQ off 8200, ROP 150, MTR RPM 150, DIFF 175, drilled from 5692’ to 5941’ WOB 10, RPM 80, GPM 500, SPP 2450, P/U 125, S/O 92, ROT 110, TQ on 10500, TQ off 8200, ROP 150, DIFF 250, weighted up mud to 10.8 ppg at 5400’, drilled from 5941’ to 6060’, slid 45’ and rotated 74’, worked tight hole, spotted lube pill on back side of BHA, worked pipe free, set off jars 16 times, pulled 280 klbs max, pumped out and racked back 5 stand wiper trip, reamed to bottom, drilled from 6060’ to 6313’, slid 83’, rotated 173’, WOB 12, RPM 80, GPM 490, SPP 2600, continued drilling to 6414’ CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Lott, Yessak DATE Sep 08, 2014 DEPTH 5689' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 4806' 24 HOUR FOOTAGE 883' CASING INFORMATION 16" @ 135.5' 9 5/8" @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5647.70' 39.91 21.66 4615.35' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 2.5" HDBS PDC MM65M Bit 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 422.0 @ 5272' 2.4 @ 5131' 111.1 80.9 FT/HR SURFACE TORQUE 12292 @ 5176' 2172 @ 4961' 7809.1 8401.0 AMPS WEIGHT ON BIT 78 @ 5318' 1 @ 5267' 10.0 10.1 KLBS ROTARY RPM 79 @ 5674' 5 @ 4961' 64.3 75.04 RPM PUMP PRESSURE 2511 @ 5651' 1838 @ 4822' 2227.5 2459.5 PSI DRILLING MUD REPORT DEPTH MW 10.6 VIS 61 PV 20 YP 40 FL 6 Gels 14/23/28 CL- 48000 FC 1/1 SOL 12 SD 0.1 OIL 2/86 MBT 6 pH 10.6 Ca+ 90 Alk 3.2 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1300 @ 4976' 40 @ 4886' 384.3 TRIP GAS NA CUTTING GAS 0 @ 5689' 0 @ 5689' 0.0 WIPER GAS 179u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 254013 @ 4976' 7056 @ 4886' 72690.2 CONNECTION GAS HIGH NA ETHANE (C-2) 1775 @ 4976' 36 @ 4886' 410.5 AVG NA PROPANE (C-3) 361 @ 4974' 11 @ 4885' 106.3 CURRENT NA BUTANE (C-4) 93 @ 5278' 0 @ 5534' 3.3 CURRENT BACKGROUND/AVG 47U PENTANE (C-5) 14 @ 5186' 0 @ 5152' 2.1 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 4782-4884'; 4940'-5010'; 5116'-5130'; 5210'-5290'; 5313'- 5341'; 5445'-5548' Sand, tuffaceous sandstone, tuffaceous siltstone 654u; 1300u; 867u; 1227u; 474u; 1068u See Show Report #19 -24 LITHOLOGY Tyonek Formation PRESENT LITHOLOGY 80% Tuffaceous siltstone, 20% tuffaceous sandstone DAILY ACTIVITY SUMMARY Drilled from 4821’ to 5008’, max gas of 1300 units, weighted up to 909 ppg, drilled from 5008’ to 5130’ WOB 10, RPM 75, GPM 500, SPP 2000, P/U 130, S/O 80, ROT 102, TQ on 8500, TQ off 7000, ROP 150, MTR RPM 150, DIFF 1500, circulated hole clean for wiper trip, increased mud weight to 10.1 ppg, checked for flow, no flow, performed short trip to shoe, pulled on elevators from 5130’ to 4250’ pumped and reamed 4250’ to shoe, hole unloaded clay and coal, serviced rig, tripped in hole and reamed final stand, loaded drill pipe with sweep, drilled from 5130’ to 5342’ WOB 10, GPM 500, RPM 75, SPP 2250, drilled to 5689’, no connection gasses observed over past 24 hours. CANRIG PERSONNEL ON BOARD 2 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Lott, Yessak DATE Sep 07, 2014 DEPTH 4806' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 3829' 24 HOUR FOOTAGE 977' CASING INFORMATION 16" @ 135.5' 9 5/8" @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4778.80' 35.94 24.59 3944.88' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5" HDBS PDC MM65M Bit 12354284 6x12/0.6627 3554' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 297.1 @ 4167' 2.2 @ 4335' 92.7 145.3 FT/HR SURFACE TORQUE 12168 @ 4372' 1268 @ 4636' 6298.6 8197.7 AMPS WEIGHT ON BIT 66 @ 4760' 0 @ 4512' 9.3 7.5 KLBS ROTARY RPM 138 @ 4532' 1 @ 4683' 44.8 74.4 RPM PUMP PRESSURE 2201 @ 4656' 1627 @ 3830' 1897.0 2041.1 PSI DRILLING MUD REPORT DEPTH MW 9.8 VIS 60 PV 17 YP 33 FL 5.8 Gels 13/21/25 CL- 41000 FC 1/1 SOL 8 SD 0.1 OIL 2/90 MBT 3.5 pH 10.7 Ca+ 100 Alk 3 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1012 @ 4191' 8 @ 3871' 161.3 TRIP GAS NA CUTTING GAS 0 @ 4806' 0 @ 4806' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 183325 @ 4191' 1601 @ 3871' 30980.4 CONNECTION GAS HIGH NA ETHANE (C-2) 1293 @ 4195' 11 @ 3871' 204.5 AVG NA PROPANE (C-3) 201 @ 4323' 0 @ 4556' 33.8 CURRENT NA BUTANE (C-4) 13 @ 4287' 0 @ 4331' 0.5 CURRENT BACKGROUND/AVG 23 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 3865'-3890'; 3905'-3940'; 3990'-4010'; 4020'-4090'; 4125'- 4135'; 4155'- 4190'; 4270'-4295'; 4678'-4698' Sand, tuffaceous siltstone 430u; 752u; 536u; 384u; 370u; 1012u; 323u; 233u. See Show Report #11-18 LITHOLOGY Tyonek Formation PRESENT LITHOLOGY Tuffaceous siltstone 70%, sand 30% DAILY ACTIVITY SUMMARY Drilled from 3829’ to 4204’ WOB 10, RPM 60, GPM 500, SPP 1900, P/U 125, S/O 72, ROT 94, TQ on 9500, TQ off 7500, ROP 125, MTR RPM 120, DIFF 200, drilled from 4204’ to 4465’, ROT 231, slide 30, WOP 10, RPM 60, GPM 505, TQ 8800, off TQ 7400, SPP 1900, drill 4465’ to 4618’, slide 70’ ROT 83’ WOP 10, RPM 75, GPM 500, TQ 9000, off TQ 7600, SPP 1975, DIFF 200, P/U 132, S/O 80, ROT 96, slow pump rates at 4385’ 9.7 ppg, drilled from 4681’ to 4281’, WOB 10, RPM 75, GPM 500, SPP 1900, P/U 135, S/O 80, ROT 100, TQ on 10000, TQ off 7500, ROP 75, MTR RPM 150, DIFF150, slid 135’ at 75R. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Lott, Yessak DATE Sep 06, 2014 DEPTH 3829' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 3554' 24 HOUR FOOTAGE 275' CASING INFORMATION 16" @135.5' 9 5/8" @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3787.22' 40.24 9.45 3169.01' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HDBS PDC MM65M Bit 12354284 6x120.6627 3554 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 213.7 @ 3817' 3.4 @ 3583' 101.3 116.4 FT/HR SURFACE TORQUE 9170 @ 3554' 1328 @ 3595' 7326.0 7817.4 AMPS WEIGHT ON BIT 58 @ 3767' 3 @ 3555' 9.9 9.8 KLBS ROTARY RPM 92 @ 3680' 1 @ 3595' 50.7 57.6 RPM PUMP PRESSURE 1903 @ 3554' 1192 @ 3555' 1670.2 1764.6 PSI DRILLING MUD REPORT DEPTH MW 9.5 VIS 55 PV 10 YP 27 FL 8.8 Gels 10/11/13 CL- 35000 FC 1/- SOL 6 SD 0.1 OIL /94 MBT 2.5 pH 11.1 Ca+ 120 Alk 2 MWD SUMMARY INTERVAL 3554' TO TOOLS Directional, gamma, resistivity, nuclear, density, porosity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 850 @ 3819' 35 @ 3588' 158.7 TRIP GAS NA CUTTING GAS 0 @ 3829' 0 @ 3829' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 155020 @ 3818' 6593 @ 3584' 25984.3 CONNECTION GAS HIGH NA ETHANE (C-2) 1283 @ 3818' 36 @ 3770' 173.3 AVG NA PROPANE (C-3) 111 @ 3800' 0 @ 3771' 21.7 CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 41u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 3808'-3830' Sand, tuffaceous siltstone 850u See show report #10 LITHOLOGY Beluga formation PRESENT LITHOLOGY 50% tuffaceous claystone, 30% tuffaceous siltstone, 20% sand DAILY ACTIVITY SUMMARY Picked up 100 single joints of drill pipe from catwalk, held pre-job safety meeting, slipped and cut 40’ drill line, reset com, recalibrated hookload, serviced rig, racked back 50 stands in derrick, held pre-job safety meeting with Haliburton and rig crew, picked up bottom hole assembly, scribbled mud motor and MWD tools, downloaded tools, pre-job safety meeting on loading sources, pulse tested tools, swapped out jars, latched out heavy wall drill pipe from derrick, circulated to test MWD equipment, picked up 85 single joints of drill pipe from catwalk, all drifted and tallied, serviced rig, greased crown sheaves, traveling blocks, top drive, break linkage, draworks, checked all fluid levels, drilled out float collar, cement, shoe, rathole, 20’ new formation, tagged float collar at 3462’ and shoe at 3548’, observed 506 units of gas, conditioned and circulated mud for formation integrity test, F.I.T. tested to 12.8 estimated mud weight, drilled from 3574’ to 3829’ WOB 10, RPM 60, GPM 500, SPP 1600, P/U 120, S/O 70, ROT 85, TQ on 8500, TQ off 7000, ROP 150, RPM 150, DIFF 175. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3465 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Yessak, McDowell DATE Sep 05, 2014 DEPTH 3554' PRESENT OPERATION Singling in hole TIME 24:00 YESTERDAY 3554' 24 HOUR FOOTAGE 0' CASING INFORMATION 16" @ 135.5' 9 5/8" @ 3548' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3507.53' 39.53 9.74 2956.09' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" QHCCIGR HDBS Mill Tooth Bit 12466781 3x18 135' 3554' 3419' 61.33 2-3-BU-G-E-I-PN TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 9.9 VIS 45 PV 17 YP 20 FL 6 Gels 9/12/14 CL- 500 FC 2/- SOL 10 SD 0.25 OIL /90 MBT 27.5 pH 9.0 Ca+ 40 Alk 0.3 MWD SUMMARY INTERVAL 135' TO 3554' TOOLS Directional, resistivity, gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG NA PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Picked up lower rams, picked up annular, double rams, and mud cross, touqued bolts, rigged up kill and choke valves, installed catch can and flow line, held safety meeting, rigged up flowline and bell nipple, bleed-off line, hole fill line, rigged up accumulator hydraulic lines, choke line, hammered up nuts on stack, rigged up gas buster dump line, removed bridal lines and reinstalled bails on top drive, charged compensators on top drive, fixed equalizer cable in mud tanks, charged accumulator, function tested BOPs, filled with fresh water and killed the choke lines, choke manifold, BOP stack, body tested same and waited for arrival of state representative, with state representative present, total safety tested H2S and LEL alarms, tested Pason PVT, flow sensors and alarms, tested 1, 2, 3, 4, 250 low, 3500 high, 2500 on annular. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2245.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Yessak, McDowell DATE Sep 04, 2014 DEPTH 3554' PRESENT OPERATION Nipple up BOP TIME 24:00 YESTERDAY 3554' 24 HOUR FOOTAGE 0' CASING INFORMATION 9 5/8" @ 3554' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3507.53' 39.35 9.74 2956.09' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" QHCCIGR HDBS Mill Tooth Bit 12466781 3x18/0.7455 135' 3554' 3419' 61.33 2-3-BU-G-E-I-PN TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 10.0 VIS 45 PV 17 YP 20 FL 6 Gels 9/12/14 CL- 500 FC 2/- SOL 10 SD 0.25 OIL /90 MBT 27.5 pH 9.0 Ca+ 40 Alk 0.3 MWD SUMMARY INTERVAL 135' TO 3554' TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 28u CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG NA PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Rigged up power tongs, made up landing joint, circulated mud at 5 bpm 465 psi, monitored gas, no losses, conditioned mud to lower yield point for cement, held a safety meeting with cementers, rigged up cement head and lines, pressure tested lines, cement 9 5/8” casing, 40 bbl/spacer at 11.1 ppg, 252 bbl/lead at 12 ppg, casing P/U 135, S/O 85, pumped total of 233 bbls of 12 ppg lead cement, 54.4 bbls of 15.2 ppg tail cement, dropped top plug, took over pumping with rig pump, bumped plug, pressured to 1425 psi, held for 5 minutes, blew down cementers plumbing, flushed stack with cement retarder, drained, re-flush treated return with retarder, approximately 40 bbls spacer, 70 bbls cement to surface, rigged down Weatherford, casing running tool, power unit, service loop, elevators, etc., nippled down diverter, flow line, bleed-off line, riser, annular cleaning pits, hauled off spud mud, held safety meeting with crane crew, crane lifted BOP, nippled down DSA, cleaned flutes, from hanger to land pack-off, landed pack-off as per Cameron representative. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2245.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Leslie, Yessak DATE Sep 03, 2014 DEPTH 3554' PRESENT OPERATION Running casing TIME 24:00 YESTERDAY 3554' 24 HOUR FOOTAGE 0' CASING INFORMATION 16" @ 135.5' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3507.53' 39.35 9.74 2956.09' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" QHCC1GR HDBS Mill Tooth Bit 12466781 3x18/0.7455 0' 3554' 3554' 61.33 2-3-BU-G-E-I-PN TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 10.0 VIS 65 PV 29 YP 33 FL 6 Gels 17/22/26 CL- 500 FC 2/- SOL 10 SD 0.25 OIL /90 MBT 27.5 pH 9.0 Ca+ 40 Alk 0.3 MWD SUMMARY INTERVAL 135' TO 3554' TOOLS Directional, resistivity, gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 60u CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 9u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Ran in hole with the bottom hole assembly, performed a clean out run, washed down last stand, 3 feet of fill, conditioned mud and circulated, GPM 550, SPP 1280, 60 units of gas, pumped a high viscosity sweep, PU 80, SO 70, ROT 73, circulated hole clean, flow checked the well, no flow, tripped out of hole to the bottom hole assembly, racked back 6 ¾ flex collars, laid down stabs, 8” flex collars, bit sub, and bit, cleaned rig floor, pulled wear bushings, pulled wear bushing, dummy run landing joint with Cameron representative, and marked accordingly, rigged down bails and elevators, made up full opening safety valve to casing crossover, picked up spider, casing slips, power tongs, casing running tool, made up casing running tool, adjusted TD torque, held a pre-job safety meeting with Weatherford and rig crew, ran in hole with 9 5/8 casing from float track to 3521’, torqued at 10K, circulated at 1.5 bbls/min monitored for losses. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2245.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Leslie, Yessak DATE Sep 02, 2014 DEPTH 3554' PRESENT OPERATION Clean out run TIME 24:00 YESTERDAY 3363' 24 HOUR FOOTAGE 191' CASING INFORMATION 16" @ 135.5' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3507.53' 39.35 9.74 2956.09' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" QHCC1GR HDBS Mill Tooth Bit 12466781 3x18/0.7455 135.5' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 82.2 @ 3411' 2.3 @ 3482' 37.6 13.3 FT/HR SURFACE TORQUE 9531 @ 3389' 2630 @ 3508' 6495.2 9170.7 AMPS WEIGHT ON BIT 33 @ 3369' 14 @ 3528' 19.9 21.2 KLBS ROTARY RPM 75 @ 3553' 66 @ 3485' 53.3 75.3 RPM PUMP PRESSURE 1930 @ 3388' 1641 @ 3369' 1844.2 1903.2 PSI DRILLING MUD REPORT DEPTH MW 10.0 VIS 98 PV 34 YP 46 FL -@- Gels 22/33/39 CL- 500 FC 2/- SOL 10 SD 0.25 OIL /90 MBT 27 pH 9.5 Ca+ 40 Alk 0.4 MWD SUMMARY INTERVAL 135' TO 3554' TOOLS Directional, resistivity, gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 832 @ 3402' 57 @ 3389' 235.9 TRIP GAS NA CUTTING GAS 0 @ 3554' 0 @ 3554' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 165246 @ 3402' 5130 @ 3389' 44123.3 CONNECTION GAS HIGH NA ETHANE (C-2) 1444 @ 3402' 35 @ 3389' 316.3 AVG NA PROPANE (C-3) 142 @ 3401' 3 @ 3389' 55.3 CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 3398'-3415'; 3460'-3489'; 3534'-3547' Beluga Formation 832u; 470u; 424u See Show Report #7; See Show Report #8; See Show Report #9 LITHOLOGY Beluga Formation PRESENT LITHOLOGY 50% Sand, 30% Carbonaceous Material, 10% Siltstone, 10% Tuffaceous Claystone DAILY ACTIVITY SUMMARY Drilled from 3363’ to 3423’, WOB 18, SPP 1730, RPM 80, GPM 550, TQ 8.5K-9K, circulated gas out of hole at 3423’ from 832 units to 96 units, drilled from 3423’ to 3496’, WOB 18, SPP 1890, RPM 70, GPM 550, TQ 8.2 K-8.6K, serviced rig, P/U 100, S/O 70, ROT 80, drilled from 3496’ to 3554’, slid 20’, rotated 69’, WOB 20, SPP 1850, RPM 70, GPM 540, TQ 8400, P/U 100, S/O 70, ROT 80, pumped sweep, circulated hole clean, Canrig checked TD samples, performed flow check, no flow, back reamed from 3554’ to 1310’, pumped sweep, circulated hole clean, back reamed from 1310’ to heavy weight drill pipe, performed flow check, no flow, continued to back ream to bottom hole assembly, racked back directional tools, downloaded MWD tools, serviced rig, staged bottom hole assembly, conducted pre-job safety meeting for picking up and running in hole with the bottom hole assembly. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2245.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Leslie, Yessak DATE Sep 01, 2014 DEPTH 3363' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 2810' 24 HOUR FOOTAGE 553' CASING INFORMATION 16" @ 135.5' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3323.84' 38.44 9.15 2813.05' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" QHC1GR HDBS Mill Tooth Bit 12466781 3x18/0.7455 135.5' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 110.0 @ 3183' 2.9 @ 3122' 44.6 22.5 FT/HR SURFACE TORQUE 9319 @ 2882' 6546 @ 2849' 7699.4 8321.7 AMPS WEIGHT ON BIT 28 @ 3308' 10 @ 3269' 20.1 18.75 KLBS ROTARY RPM 78 @ 3267' 55 @ 2828' 68.2 70.5 RPM PUMP PRESSURE 2060 @ 3003' 1701 @ 3267' 1853.4 1773.1 PSI DRILLING MUD REPORT DEPTH MW 9.9 VIS 95 PV 34 YP 42 FL 6.6 Gels 18/29/38 CL- 500 FC 2/- SOL 10 SD 0.3 OIL /90 MBT 27.5 pH 9.7 Ca+ 40 Alk 0.4 MWD SUMMARY INTERVAL 135' TO 3363' TOOLS Directional, resistivity, gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 597 @ 3225' 58 @ 2864' 163.0 TRIP GAS NA CUTTING GAS 0 @ 3363' 0 @ 3363' 0.0 WIPER GAS 553u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 108106 @ 3225' 11663 @ 2864' 31969.4 CONNECTION GAS HIGH NA ETHANE (C-2) 668 @ 3232' 68 @ 2864' 210.7 AVG NA PROPANE (C-3) 126 @ 2869' 1 @ 3211' 41.2 CURRENT NA BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 83u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga Formation PRESENT LITHOLOGY 40% Siltstone, 30% Sand, 30% Tuffaceous Claystone DAILY ACTIVITY SUMMARY Circulated bottoms upat 2810’ with 415 units of gas, flow checked the well, no flow, P/U 90k, S/O 60k, ROT 84k, performed wiper trip from 2810’ to 1500’, circulated at 1775’ with 401 units of gas, centrifuged mud, checked for flow, no flow, serviced rig, ran in hole on elevators from 1559’ to 2500’, ran in remaining stands, flow checked well, no flow, loaded sweep in drill string, drilled from 2810’ to 3012’ WOB 20, RPM 65, GPM 525, SPP 1850, TQ 8000, Drill from 3012’ to 3048’ WOB 20, RPM 75, GPM 550., SPP 1850, TQ 8500, off bottom TQ 6200, continued drilling, circulated gas out of hole at 6241’ from 595 units to 97 units, no connection gasses noted in last 24 hours. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2545.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Leslie, Yessak DATE Aug 31, 2014 DEPTH 2810' PRESENT OPERATION Tripping TIME 24:00 YESTERDAY 1817' 24 HOUR FOOTAGE 993' CASING INFORMATION 16" @ 135.5' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2763.16' 38.91 8.62 2371.00' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25 QHC1GR HDBS Mill Tooth Bit 12466781 3x18/0.7455 135' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 174.1 @ 1882' 5.1 @ 2687' 69.8 56.8 FT/HR SURFACE TORQUE 8706 @ 2370' 1881 @ 2254' 6786.3 7600.8 AMPS WEIGHT ON BIT 24 @ 2005' 10 @ 2265' 20.6 19.4 KLBS ROTARY RPM 66 @ 2426' 54 @ 2369' 59.0 63.3 RPM PUMP PRESSURE 2029 @ 2426' 1567 @ 1872' 1827.8 1907.3 PSI DRILLING MUD REPORT DEPTH MW 9.8 VIS 90 PV 33 YP 37 FL 7.8 Gels 16/26/39 CL- 500 FC 2/- SOL 10 SD 0.3 OIL /90 MBT 25 pH 9.7 Ca+ 40 Alk 0.2 MWD SUMMARY INTERVAL 135 TO 2810 TOOLS Directional, resistivity, gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 828 @ 2114' 33 @ 2299' 171.3 TRIP GAS NA CUTTING GAS 0 @ 2810' 0 @ 2810' 0.0 WIPER GAS 450u CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 164962 @ 2114' 6533 @ 2299' 32922.6 CONNECTION GAS HIGH 0 ETHANE (C-2) 630 @ 2376' 1 @ 1943' 138.8 AVG 0 PROPANE (C-3) 154 @ 2112' 1 @ 1985' 34.6 CURRENT 0 BUTANE (C-4) 9 @ 2569' 0 @ 2586' 0.2 CURRENT BACKGROUND/AVG 52u PENTANE (C-5) 0 @ 2810' 0 @ 2810' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 2687'-2711' Beluga Formation 670u Lower fine grained sand LITHOLOGY Beluga formation PRESENT LITHOLOGY 100% Sand DAILY ACTIVITY SUMMARY Tripped in hole from 255’ to 1818’, safety reamed last stand, circulated bottoms up with 450 units of gas, drilled from 1818’ to 2037’ WOB 18k, SPP 1730, GPM 550, RPM 65, DIFF 260, drilled 2037’ to 2317’ sliding for 68’ and rotating for 212’ drilled from 2317’ to 2565’, WOB 20, RPM 65, GPM 550, SPP 1900, TQ 7500, off bottom 5600, PU 84K, SO 58K, ROT 68K, pumped sweeps at 2050’, 50% increase in cuttings return at 2520’, drilled from 2565’ to 2720’ WOB 20k, SPP 1850, RPM 65, GPM 550, DIFF 200, TQ 8800 to 9k, at 2720’ circulated gas from 670 units to 95 units, drilled from 2720’ to 2810’ WOB 20k, SPP 1800, RPM 65, GPM 550, DIFF 250. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2245.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Leslie, Yessak DATE Aug 30, 2014 DEPTH 1817' PRESENT OPERATION Tripping TIME 24:00 YESTERDAY 740' 24 HOUR FOOTAGE 1077' CASING INFORMATION 16" @ 135.5' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1769.20' 39.82 9.39 1605.54' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" HDBS Mill Tooth Bit 12466781 3x18/0.7455 135' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 308.1 @ 813' 0.3 @ 950' 78.5 87.6 FT/HR SURFACE TORQUE 7477 @ 1782' 1307 @ 1634' 3671.2 6631.1 AMPS WEIGHT ON BIT 33 @ 1113' 0 @ 885' 12.2 18.1 KLBS ROTARY RPM 65 @ 1770' 2 @ 1634' 36.8 63.5 RPM PUMP PRESSURE 1771 @ 1782' 926 @ 884' 1199.7 1711.4 PSI DRILLING MUD REPORT DEPTH MW 9.3 VIS 110 PV 33 YP 44 FL -@- Gels 27/41/48 CL- 500 FC 2/- SOL 7 SD 0.75 OIL /93 MBT 25 pH 9.8 Ca+ 40 Alk 0.3 MWD SUMMARY INTERVAL 135' TO 1818' TOOLS Directional, resistivity, gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 904 @ 1645' 20 @ 1003 88.2 TRIP GAS NA CUTTING GAS 0 @ 1817' 0 @ 1817 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 156760 @ 1645' 0 @ 1119' 17321.6 CONNECTION GAS HIGH 0u ETHANE (C-2) 376 @ 1644' 0 @ 1119' 37.6 AVG 0u PROPANE (C-3) 325 @ 939' 0 @ 1119' 15.5 CURRENT 0u BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 1644'-1657'; 1672'-1690' Beluga Formation 904u; 874u Lower fine grained sand with secondary tuffaceous material LITHOLOGY Beluga Formation PRESENT LITHOLOGY 90% Sand 5% Tuff DAILY ACTIVITY SUMMARY Drilled and slid to 1818', tripped out of the hole, performed flow check off bottom. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2245.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Leslie, Yessak DATE Aug 29, 2014 DEPTH 740' PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 135' 24 HOUR FOOTAGE 605 CASING INFORMATION 16" @ 135.5' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 649.77' 7.8 10.41 648.91' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" HDBS Mill Tooth Bit 12460781 3x18/0.7455 135' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 5393 @ 513 0.4 @ 141 105.3 41 FT/HR SURFACE TORQUE 6102 @ 686 2773 @ 358 2229.6 0 AMPS WEIGHT ON BIT 27 @ 420 0 @ 136 9.7 13 KLBS ROTARY RPM 106 @ 511 35 @ 489 34.6 0 RPM PUMP PRESSURE 1248 @ 572 487 @ 139 812.3 1109 PSI DRILLING MUD REPORT DEPTH 733 MW 8.7 VIS 130 PV 14 YP 51 FL -@- Gels 27/36/40 CL- 500 FC 2/- SOL 3 SD 1 OIL /97 MBT 25 pH 9.7 Ca+ 40 Alk 0.35 MWD SUMMARY INTERVAL 135 TO 740 TOOLS Directional GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 47 @ 714 1 @ 358 7.8 TRIP GAS CUTTING GAS 0 @ 740 0 @ 740 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 12133 @ 714 288 @ 358 1702.2 CONNECTION GAS HIGH 0u ETHANE (C-2) 83 @ 628 16 @ 579 34.1 AVG 0u PROPANE (C-3) 10 @ 457 0 @ 469 0.2 CURRENT 0u BUTANE (C-4) 0 @ 740 0 @ 740 0.0 CURRENT BACKGROUND/AVG 30u PENTANE (C-5) 8 @ 325 0 @ 354 0.5 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga PRESENT LITHOLOGY 95% Sand, 5% Tuff DAILY ACTIVITY SUMMARY Picked up and racked back 10 stands of HWDP and jars, slipped and cut 55’ of drill line, staged BHA on catwalk, replaced grabber box hydro hose, held pre-spud meeting, picked up BHA, made up collars, made up 8” flex and crossovers to HWDP, filled hole, tested MSD pulse sensors, spuded at 9:34 am, tagged fill at 125’, drilled to 175’, changed out saber sub and clamp, torqued up new sub, drilled to 419’, performed flow check, racked back 5 stands of HWDP, picked up remaining 8” and 6” flexes and crossovers, ran in two stands of HWDP and jars. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2245.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Leslie, Yessak DATE August 28, 2014 DEPTH 0' PRESENT OPERATION Picking up drill pipe TIME 24:00 YESTERDAY 0' 24 HOUR FOOTAGE 0' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 0' MW 8.7 VIS 345 PV 30 YP 48 FL 14 Gels 36/45/49 CL- 600 FC 2/- SOL 97 SD - OIL /3 MBT 28 pH 9.8 Ca+ 120 Alk 1.6 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continued building spud mud, finished diverter line, staged drill pipe, checked off on rig acceptance check list, repositioned Kelly hose, installed bleeder and trip tank lines, installed flow paddle, rigged up derrick escape line, staged diverter warning signs, installed annular and knife valve hydro lines, changed koomy, placed pit liner under pipe rack, plugged in catwalk lighting, installed valves and plumbing in cellar, picked up TIW and dart valve, picked up subs and crossovers, worked on containment for camp generator, welded grating in pits/pump area, functioned hole fill pump and iron roughneck, inspected the derrick, adjusted the t-bar and TQ tube for hole center, installed wear bushing, ran in lockdown screws, picked up singles from cat walk, state representative and total safety on site, tested H2S and LEL alarms, functioned the annular knife valve, koomy draw down was state witnessed, picked up heavy wall drill pipe and jars from cat walk and racked back in derrick. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2245.50 REPORT BY Tyler Harris Hilcorp Alaska, LLC Ninilchik Unit DAILY WELLSITE REPORT Paxton #8 REPORT FOR Leslie, Yessak DATE August 27, 2014 DEPTH 0' PRESENT OPERATION Rigging up TIME 24:00 YESTERDAY 0' 24 HOUR FOOTAGE 0' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ Alk MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Carnig began rigging up CANRIG PERSONNEL ON BOARD 2 DAILY COST $2245.50 REPORT BY Tyler Harris