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Home My WebLink About216-038MEMORANDUM Founded on State of Alaska Depth To MW Above Alaska Oil and Gas Conservation Commission TO: Jim Regg Td� Ilkit, 7,960 ft MD DATE: September 25, 2019 8.5 ppg P.I. Supervisor OA 600 560 540 535 SUBJECT: Reservoir Plug Verification Milne Point Unit K-44 - FROM: Austin McLeod Hilcorp Alaska LLC Petroleum Inspector PTD 2160380; Sundry 319-395 Section: 3 Township: 12N Range: 11E Meridian: Umiat - Drilling Rig: Innovation Rig Elevation: 26.3 ft " Total Depth: 8370 ft MD' Lease No.: ADL 0375132 Operator Rep: OliverAmend Suspend: NA P&A: X - Casing/Tubing Data (depths are MD): Casing Removal: Conductor: 20" O.D. Shoe@ 80 Feet Csg Cut@ NA Feet Surface: 10-3/4" O.D. Shoe@ 5,597 Feet Csg Cut@ NA Feet Intermediate: 7-5/8" - O.D. Shoe@ 8,361 - Feet Csg Cut@ NA Feet Production: O.D. Shoe@ Feet Csg Cut@ NA Feet Liner: O.D. Shoe@ Feet Csg Cut@ NA Feet Tubing: 2 7/8" O.D. Tail@ 7437 - Feet Tbg Cut@ NA Feet Plugging Data: Type Plug Founded on Depth Btm Depth To MW Above Verified Fullbore " Retainer 7,960 ft MD 7,703 ft MD 8.5 ppg Drillpipe tag - OA 600 560 540 535 Test Data: Initial 15 min 30 min aF min Poci It Tubing NA NA NA NA IA 2190 2116 - 2086 2083 P OA 600 560 540 535 Remarks: I traveled to Milne Points K pad, well 44, to witness the tag and pressure test of a cement plug that was pumped to isolate the perforated Kuparuk C sands. Prior to my arrival a cement retainer was set at 7,960 ft MD (111 It above top perforation) with 18 barrels of 15.8 ppg cement pumped below the retainer and 22 barrels left above. The estimated top of cement was figured to be at 7,481 ft MD. The rig ran a 3-1/2" muleshoe in the hole on 4" drill pipe. The rig washed down to 7,650 ft MD with 2 bpm/75 psi r and a down weight of 98k lbs. With no weight taken and no signs of pump pressure increase it was decided to circulate the bottom up. At surface higher pH levels were seen and spotty "uncured" cement was coming across the shakers. Washing down again we started to see stringers at 7,694 ft MD with 5k lbs set down and noticed some pump pressure increase at 7,703 ft MD. Three tags were made at the same 7,703 ft MD. Top of cement was found 222 ft (10 barrels) deeper than anticipated. This left 257 ft of cement (11.8 barrels) on top of the retainer. Pulling up to 7638 ft MD, they completed a passing test against the cement plug with 3.1 barrels to pressure and 2.9 barrels back once bled. Attachments: none rev. 11-28-18 2019-0925_Plug_Verification_M P U_K-44_am THE STATE °fALASKA GOVERNOR MIKE DUNLEAVY Chad Helgeson Operations Manager Hilcorp Alaska, Inc. 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Milne Point Field, Kuparuk River Oil Pool, MPU K-44 Permit to Drill Number: 216-038 Sundry Number: 319-395 Dear Mr. Helgeson: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 w .aogcc.alaska.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 day of September, 2019. RBDMS±'* SEP 0 5 2019 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 AUG 2 0 2�fl9 AGGGG 1. Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown ❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing Change Approved Program ❑ Plug for Redrill Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing L Other: Res. Abandon 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Hilcorp Alaska LLC Exploratory ❑ Development F1 Straligraphic ❑ Service ❑ 216-038 ' 3. Address: 3800 Centerpoint Dr, Suite 1400 6. API Number: Anchorage Alaska 99503 50-029-23567-00-00 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? C.O. 432D Will planned perforations require a spacing exception? Yes ❑ No 0 MILNE PT UNIT K-44 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL0375132 / ADL0375133 I MILNE POINT / KUPARUK RIVER OIL ' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 8,370' 7,376' 8,140' 7,151' 1,978 8,140' NIA Casing Length Size MD TVD Burst Collapse Conductor 80' 20" 80' N/A NIA N/A Surface 5,563' 10-3/4" 5,597' N/A 3,580psi 2,090psi Intermediate 8,329' 7-5/8" 8,361' N/A 6,890psi 4,790psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Schematic See Schematic 2-7/8" 6.5 / L-80/ EUE 7,437' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): NIA and NIA N/A and N/A 12. Attachments: Proposal Summary : Wellbore schematic Laj 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑� Exploratory ❑ Straligraphic ❑ Development ❑� Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 9 /1 612 01 9 OIL ❑� WINJ ❑ WDSPL ❑ Suspended ❑� GAS ❑ WAG ❑ GSTOR ❑ SPLUG ❑ 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: Chad Helgeson Contact Name: Ian Toomey Authorized Title: Operations Manager Contact Email: itoome hllcor .com Contact Phone: 777-8434 Authorized Signature: Date: 8/23/2019 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity 01BOP Test Ltd Mechanical Integrity Test ❑ Location Clearance ❑ Other: -,(t. 3000 last -90 e T5 RBDMS�SEP 0 5 2019 Post Initial Injection MIT Req'd? Yes ❑ No ❑�/, u Spacing Exception Required? Yes ElLi No Subsequent Form Required: 1 ('� — / 0 APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Form 10-403 Revised 4/2017 `I17 ORIGINAL Submit Form and Approved application Is valid for 12 months from the date of approval. tt ents i Duplicate K Ilil..P Alaska, LL Pull ESP, P&A and setup for RD Well: MPU K-44 Date: 08-27-19 Well Name: MPU K-44 API Number: 50-029-23567-00 Current Status: SI - ESP Producer Pad: K -Pad Estimated Start Date: September 16`^, 2019 Rig: -Rig Reg. Approval Req'd? Yes Date Reg. Approval Rec'vd: Regulatory Contact: Tom Fouts Permit to Drill Number: 216-038 First Call Engineer: Ian Toomey (907) 777-8434 (0) (907) 903-3987 (M) Second Call Engineer: David Haakinson (907) 777-8343 (0) (307) 660-4999 (M) AFE Number: 1914444P Job Type: Pull ESP, P&A and setup for RD Current Bottom Hole Pressure: 2,620 psi @ 7,125' TVD 10 -day ESP Shutdown (9/13/17) 17.07 PPG Maximum Expected BHP: 2,690 psi @ 7,125' TVD 30 -day PBU Extrapolation 17.26 PPG MPSP: 1,978 psi Gas Column Gradient (0.1 psi/ft) Max Inclination 35° @ 2,486' MD Max Dogleg: 5.4°/100ft @ 1,921' MD BPV Profile: 2-1/2" CIW Type H Brief Well Summary: MPU K-44 was drilled as a C and B7 sand producer in April 2016 with Doyon 14. The B7 sand was found wet. A CBL was run with the ASR and it was determined that a block squeeze was needed. The B7 sand was perforated, a block squeeze was performed and a CBL determined that it was successful. A CIBP was set above the B7 perforations and the C sand was perforated. In May 2019 a RWO was done to upsize the ESP. Once the ESP was shut down fill covered the perforations and communication to the reservoir was lost. While doing a FCO during the RWO communication was restored when fill was cleaned out down to 8140' MD. The ESP completion was successfully run. When the well was BOL the amount of fluid produced doubled,, water cut �J increased from about "'70% to —98% and oil rate decreased from —30% to ^'2%. Notes Regarding Wellbore Condition • The 7-5/8" casing passed an MIT to 3,500 psig on 4/10/16 (during the original completion). Objective: Pull 2-7/8" ESP completion. RIH with cement retainer, set cement retainer, squeeze cement into the existing perforation, pullout of the cement retainer and place cement on top of the cement retainer. RIH and set CIBP at —6150' MD. Cut the 7-5/8" casing at —6100' MD. POOH laying down 7-5/8" casing. RIH, tag CIBP and pump balance cement kickoff plug. S/T Pre -Rig Procedure: 1. RU Slickline unit. 2. Pull DPOV from GLM at 194' MD and install DV. 3. Pull DV from GLM at 7165' MD and leave open. 4. RU LRS and PT lines to 3000 psi. 5. Reverse circulate 272 bbls of seawater down the IA taking returns up the tubing to production. 6. Shut in the IA and line up to the tubing. Bullhead 43 bbls of seawater down tubing to the formation. 7. Shut in the tubing and line up to the IA. Bullhead 38 bbls of seawater down the IA to the formation. 8. Observe the well for flow for 30 minutes to confirm well is dead. 9. Freeze protect tubing/casing as needed with 60/40 McOH. • Freeze protect is up to the discretion of the Wellsite Supervisor depending on timing for arrival of the Innovation rig. 0 Hilcoru Alaska, LG Pull ESP, P&A and setup for RD Well: MPU K-44 Date: 08-27-19 10. RD LRS 11. Clear and level pad area in front of well. Spot rig mats and containment. 12. RD well house and flowlines. Clear and level area around well. RWO Procedure: 13. MIRU the Innovation rig. 14. Check for pressure and if 0 psi pull BPV. If needed, bleed off any residual pressure off tubing and casing. If needed, kill well with seawater prior to pulling BPV. 15. Install TWC. 16. ND the tree. NU 13-5/8" BOP stack with 2-7/8" x 5" VBR's in the upper and lower pipe ram cavities. 17. Test ROPE to 250/3000 psi with 2-7/8" and 5" test joint. `7 a. Notify AOGCC 24 hours in advance of BOP test. �/✓' b. Confirm test pressures per the Sundry Conditions of approval. c. Submit to AOGCC completed 10-424 form within 5 days of BOPE test. 18. Pull the TWC. 19. RU to pull 2-7/8" ESP completion. 20. MU landing joint, BOLDS and unseat the tubing hanger. • The PU weight = 42K when run by ASR #1 in June 2019. 21. Pull the tubing hanger to the rig floor and lay down. 22. POOH laying down 2-7/8" tubing spooling ESP cable. • Send all completion equipment to G&I for cleaning to be reused. • Note the condition of the tubing and pump in daily report. 23. Install the wear ring. �C 24. Establish injectiviity into the reservoir 25. PU and MU 7-5/8" cement retainer. RIH on 4", 14#, 5-135, HT -38 DP and set at 7971' MD. , • MU Torque: Min = 12200 ft -lbs & Max = 17700 ft -lbs 26. PT the IA to 1000 psi for 10 minutes. Reestablish injectivity into the reservoir. 27. RU HES cementer and PT lines. 28. Mix and pump 40 bbls of 15.8 oog class G cement with spacers. 29. Displace the cement with the rig to the end of the cement stinger. Pump 30 bbls of cement below the retainer, pull out of the cement retainer and pump remaining 10 bbls of cement on top of the retainer. 30. Slowly TOOH -4 stands. Install wiper ball and circulate the well clean, TOOH and lay down the cement retainer running tool. 31. RD HES cementers. WOC to , ach 1500 psi compressive. RIH with muleshoe and tag the TOC and PT ?or 30 (charted) the cement plug to _ psi minutes y x • Notify the AOGCC 24 hours in advance to witness the tag and PT. J 32. TOOH and lay down the muleshoe. 33. PU and MU CIBP. RIH with CIBP and set at 6259'-Ml- 150'MD._34. 34. Displace the well to 9.2 ppg LSND mud. TOOH and lay down the running tool. 35. PU and MU the 5-1/2" multi string cutter (MSC) assembly. 36. RIH and tag top of CIBP at 6150'. Locate the collars and cut the 7-5/8" at -6090' MD. 37. Close the annular and open up the OA to the open top tank. 38. Circulate the diesel and 10.2 ppg spud mud out of the OA until clean 9.2 ppg mud at surface (OA hole volume from cut at 6090' = 241 bbls) 39. 40. TOOH and lay down the MSC assembly. 7 5� u Z� �� RU 7-5/8" casing handling equipment and power tongs. r&. A �� 7 l4 41. Pull the 7-5/8" casing pack -off. MU the landing joint, BOLDS, unseat the casing hanger, pull to the rig floor and lay down the casing hanger. B Hilcary Alaska, LL Pull ESP, P&A and setup for RD Well: MPU K-44 Date: 08-27-19 42. POOH laying down 7-5/8" casing. 43. PU and MU 3-1/2" cement stinger. 44. TIH with cement stinger to just above the CIBP. 45. RU HES cementer and PT lines. —7 a iSI3(- orlG 46. Mix and pump 30 bbls of 15.8 ppR class G cement with spacers. 47. Displace the cement with the rig to spot the balance cement plug. BOO 48. Slowly TOOH "'6 stands. Install wiper ball and circulate the well clean. 49. WOC to reach 500 psi compressive strength. Tag TOC (note tag depth in daily report). 50. Mix and pump 30 bbls (volume may need to be adjusted depending on tag of TOC) of 15.8 ppg class G cement with spacers. • Cement volume may need to be adjusted depending on the previous tag of TOC. • Cement volumes brings cement —100' up inside the 10-3/4" casing. 51. Displace the cement with the rig to spot the balance cement plug. 52. Slowly TOOH —6 stands. Install wiper ball and circulate the well clean. 53. WOC to reach 500 psi compressive strength. Tag TOC note tag depth in daily report). 54. TOOH and lay down the cement stinger. 55. Work to continue on PTD for MPU K -44A. '�� cis r % lybo`, Attachments: 1. As -built schematic 2. Proposed schematic 3. Blank MOC form 4. BOPE schematic 3dej" K NilrnN Alanko, LLC Orig, KB Elev.: 63.1'/ GL Elev.: 29.3' 10-3/4" II OA M �'. col, k T-j7ry�l/ o L�pD 4&5 6.7&B 9 10&11 12 7-5/8" ??� ' W. TD= 8,370 (MD) /TD = 7,376(TVD) PBTD=8,140' (MD)/PBTD=7,151'(TVD) SCHEMATIC TREE & WELLHEAD Milne Point Unit Well: MPU K-44 Last Completed: 6/16/2019 PTD: 216-038 Tree Seaboard 2-9/16",5K Wt/Grade/Conn Seaboard 16 3/4" 3M x 11" 5M Multibowl w/11" x 2-7/8" Tbg Hgr EUE 8rd Wellhead Top and Bottom with 4" CIW "H" BPV profile. Zea 3/8" NPT control lines. 4- Conductor 1/2" EUE x IBT XO on pup. CASING DETAIL Size Type Wt/Grade/Conn Drift ID Top Btm 20" Conductor 78.6/A-53/Weld - Surface 80' 10-3/4" Surface 45.5/L-80/BTC 9.794 Surface 5,597' 7-5/8" Production 29.7 / L-80 / BTC -M 6.750 Surface 8,361' TUBING DETAIL 2-7/8" Tubing 6.5/L-80/EUE8rd 1 2.441 1 Surf 1 7,437' JEWELRY DETAIL No. Top MD Item ID 1 194' STA#1 Camco 2-7/8" x 1" Sidepocket w/ 0.25" DPOV 2.441" 2 7,165' STA#2 Camco 2-7/8" x 1" Sidepocket, w/Dummy GLV 2.441" 3 7,282' 2-7/8"XN Nipple - MIN ID 2.205" 2.205" 4 7,332' Bolton Discharge Head - 5 7,333' Ported Discharge Head - 6 7,334' Pump 3: PMP 538PMSXD 93 FLEX47 HS - 7 7,356' Pump 2: PMP 538PMSXD 93 FLEX47 HS - 8 7,378' Pump 1: PMP 538PMSXD 20 GINPSHH H6 - 9 7,387' Gas Separator: 538GSHVV M M/C FER - 10 7,391' Upper Tandem Seal: GSB3DB H6 SB/AB PFSA 117,398' Lower Tandem Seal: GSB3DB H6 SB/AB PFSA 12 7,405' Motor: MTR 562XP - Re -Rated to 297 HP/2,825 V/ 64 A 13 7,433' Sensor/ Centralizer: Zenith E7456175C w/ Discharge PSI -Btm @ 7,437' OPEN HOLE / CEMENT DETAIL Cond Cmt to surface 13-1/2" Cmt w/ 342 bbls (Lead)120 bbls (Tail) Cmt to Surface 9-7/8" Cmt w/ 56 bbls Class G Perf from 8,144'to 8,154'/Attempt to squeeze 10 bbls of 15.8 ppg Class G cmt thru perfs, no success WELL INCLINATION DETAIL KOP @ 789' Max Hole Angle = 35.1 deg. @ 2,391' MD PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) I FT Size /SPF/Status Kup. C-1 8,071' 8,128' 7,082' 7,139' 57 3-3/8"/6spf/Open Kup. 8-7 8,144' 8,154' 7,154' 7,164' 10 3-3/8" / 10spf/ Isolated GENERAL WELL INFO API: 50-029-23567-00-00 Drilled and Cased, Kill String Installed by Doyon 14 -4/12/2016 Completion and Perforation by ASR 1- 5/13/16 ESP Swap by ASR 1-6/16/2019 Created By: TDF 7/9/2019 K Ililenry Alaska, LLC Orig. KB Elev.: 63.1'/ GL Elev.: 29.3' ON `QBP@G16n 0`,6 6 TOC@7.050 Cemnl Relaner @7.9'11 — PROPOSED TREE & WELLHEAD Milne Point Unit Well: MPU K-44 Last Completed: 6/16/2019 PTD: 216-038 Tree Seaboard 2-9/16", SK Wt/Grade/Conn Seaboard 16 3/4" 3M x 11" SM Multibowl w/31" x 2-7/8" Tbg Hgr EUE 8rd Wellhead Top and Bottom with 4" CIW "H" BPV profile. Zea 3/8" NPT control lines. 4- Conductor 1/2" EUE x IBT XO on pup. CASING DETAIL Size Type Wt/Grade/Conn DriftlD Top Btm 20" Conductor 78.6/A-53/Weld Surface 80' 10-3/4" Surtace 45.5/L-80/BTC 9.794 Surface 5,597' 7-5/8" Production 1 29.7 / L-80 / BTC -M 6.750 Surface 8,361' TUBING DETAIL 2-7/8" Tubing 6.5/L-80/EUE8rd 1 2.441 1 Surf 1 7,437' JEWELRY DETAIL No. Top MD Item ID 1 1 6,150' Cast Iron Bridge Plug(CIBP) 2 7,971' Cement Retainer 3 8,140' Cement Retainer l� 1 PS✓ �0 Cerrern Relaune- @8140 i VP Sand f 9 7-5/8" TD=8,370 (MD) /TD=7,376'(TVD) PBTD=8,140' IMD) / PBTD = 7,151'UVD) OPEN HOLE / CEMENT DETAIL Cond Cmt to surface 13-2/2" Cmt w/ 342 bbls (Lead)120 bbls (Tail) Cmt to Surface 9-7/8" Cmt w/ 56 bbls Class G Perf from 8,144' to 8,154'/Attempt to squeeze 30 bbls of 15.8 ppg Class G cant thru perfs, no success WELL INCLINATION DETAIL KOP @ 789' Max Hole Angle =35.1 deg. @ 2,39V7 MD] DETAIL GENERAL WELL INFO Created By: IAT 8/27/2019 UHilcorp Alaska, LLC Hilcorp Alaska, LLC Changes to Approved Rig Work Over Sundry Procedure Date: April 8`^, 2019 Subject: Changes to Approved Sundry Procedure for Well MPU K-44 Sundry #: Any modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to the AOGCC by the rig workover (RWO) "first calf' engineer. AOGCC written approval of the change is required before implementing the change. Step Page Date HAK HAK Procedure Change Prepared Approved B Initials B Initials AOGCC Written Approval Received Person and Date Approval: Prepared: Operations Manager Date Operations Engineer Date 3-118" Kill Innovation Rig BOP Schematic 3-518' 5M Control Technology ranular BOP 13-518" 5M Control Technology Double Ram -- --3-1/8" Choke Line 5M M x 5 (5M "x5M 13.518" 5M Control Technology Single Ram Sundry Application Plug for Re -drill Wells Work Flow This process is used to identify wells that are suspended for a very short time prior to being re - drilled. Those wells that are not re -drilled immediately are identified every 6 months and assigned a current status of"Suspended." Step Task Responsible I The initial reviewer will check to ensure that the "Plug for Redrill" box Geologist 3 in the upper left corner of Form 10-403 is checked. If the "Abandon" or "Suspend" boxes are also checked, cross out that erroneous entry and initial it on both copies of the Form 10-403 (AOGCC's and operator's copies). 2 If the "Abandon" box is checked in Box 15 (Well Status after proposed Geologist work) the initial reviewer will cross out that erroneous entry and initial then it on both copies of the Form 10-403 (AOGCC's and operator's copies). i/ Instead, check the "Suspended" box and initial that change. Drilling Engineer The drilling engin@ers will serve as quality control for steps I and 2. (QC) 3 When the Stat Tech receives a Form 10-403 with a check in the "Plug Stat Tech for Redrill" box, they will enter the Typ_Work code "IPBRD" into the ' History tab for the well in RBDMS. This code automatically generates a comment in the well history that states "Intent: Plug for Redrill." 4 When the Stat Tech receives any Form 10-407, they will check the Stat Tech History tab in RBDMS for the "Intent: Plug for Redrill" code (IPBRD). If present and there is no evidence that a subsequent re -drill has been COMPLETED, the Stat Tech will assign a status of SUSPENDED to the well bore in RBDMS no matter what status is listed on the 10-407. The Stat Tech will also change the status on the 10-407 form to SUSPENDED, and date and initial this change. If the Stat Tech does not see the "Intent: Plug for Redrill" comment or code, they will enter the status listed on the Form 10-407 into RBDMS. 5 When the Form 10-407 for the redrill is received, the Stat Tech will Stat Tech change the original well's status from SUSPENDED to ABANDONED. 6 The first week of every January and July, the Stat Tech and one of the Stat Tech Geologists will check the "Well by Type Work Outstanding" user query Geologist in RBDMS to ensure that all of the Plug for Redrill wells have been handled properly. At this same time, they will also review the list of suspended wells for accuracy. 10,000,000 1,000,000 t Y 0 C0 G G 100,000 LL u 0 N M 10,000 to _ O w o a m LL 1,000 „ o a U U v C m 100 N 0 O L H 10 1 Jan -2015 Hilcorp Alaska LLC, MILNE PT UNIT K-44 (216-038) MILNE POINT, KUPARUK RIVER OIL Monthly Production Rates 10,000,000 w d 1,000,000 N 0 O 100,000 K 0 7 .. S 10,000 0 W d 1,000 N Jan -2016 Jan -2017 Jan -2018 ian-cuay —& Produced Gas (MCPM) • GOR — Produced Water (BOPM) — Produced Oil (BOPM) 1 ,C„-020 SPREADSHEET _2160380_M PU_K-44_P rod_Curves_W eil_0 ii_V 120_2019830. xl sx 8/30/2019 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS RECEIVED JUL 10 2019 1. Operations Abandon U Plug Perforations U Fracture SfimulateU Pull Tubing s Operations shufabwn Performed: Suspend ❑ Perforate ❑ Other Stimulate❑ Alter Casin g ❑ Change Approved Frog ram ❑ Plug for Redrill ❑ arforate New Pool ❑ Repair Well❑ Re-enter Susp Well ❑ Other: ESP Change -out ❑� 2. Operator Hilcorp Alaska LLC 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development❑ Stmtigraphic❑ E Exploratory ry ❑ Service ❑ 1 216-038 3. Address: 3800 Centerpoint Dr, Suite 1400 Anchorage, 6. API Number: AK 99503 50-029-23567-00-00 7. Property Designation (Lease Number): 8. Well Name and Number: ADL0375132 / ADL0375133 MILNE PT UNIT K-44 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field/Pool(s): N/A MILNE POINT/ KUPARUK RIVER OIL 11. Present Well Condition Summary: Total Depth measured 8,370 feet Plugs measured 8,140 feet true vertical 7,376 feet Junk measured N/A feet Effective Depth measured 8,140 feet Packer measured WA feet true vertical 7,151 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Conductor 80' 20" 80' 80' N/A N/A Surface 5,563' 10-3/4" 5,597' 4,953' 3,580psi 2,090psi Intermediate 8,329' 7-5/8" 8,361' 7,367' 6,890psi 4,790psi Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth) 2-7/8" 6.5# / L-80 / EUE 8rd 7,437' 6,491' Packers and SSSV (type, measured and true vertical depth) N/A N/A N/A N/A 12. Stimulation or cement squeeze summary: N/A 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: 435 66 1,322 260 212 Subsequent to operation: 36 106 3,636 320 223 14. Attachments (required per 20 AAc 25.070, 25.071, &25.283) 15. Well Class after work: Daily Report of Well Operations 0 Exploratory❑ Development F±1 Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16. Well Status after work: Oil Q Gas ❑ 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: 319-182 Authorized Name: Chad Helgeson Contact Name: David Haakinson Authorized Title: Operations Manager Contact Email: dhaaklnson(aihllcofp.cor / I Authorized Signature: C l ate: 7/10/2019 Contact Phone: 777-8343 lel' 13 Form 10-404 Revised 412017 ,I $�3�y RBDMS1 JUL 1 1 2019 Submit Original Only K 161corp 9laeka. LL1: Ofig. KB Bev.: 63.1161- Elev.: 29-Y y 10 -3/4 - 4d5 6,7La 9 11 Est TOCO 7,057 (2BP@&147 B-antlswet mle % 1 TD = 8,370 (MD) /TD =7,379(Mi PBTD = 8,140' (MD) J PBTD = 7,151'(IVD) SCHEMATIC TREE & WELLHEAD Milne Point Unit Well: MPU K-44 Last Completed: 6/16/2019 PTD: 216-038 Tree I eaboard 2-9/16",5K Wt/Grade/Conn Seaboard 16 3/4" 3M x 11" SM Multibowl w/11" x 2-7/8" Tbg Hgr EUE 8rd Wellhead I Top and Bottom with 4" CIW "H" BPV profile. Zea 3/8" NPT control lines. 4- Conductor 1/2" EUE x IBT XO on pup. CASING DETAIL Size Type Wt/Grade/Conn Drift ID Top Btm 20" Conductor 78.6/A-53/Weld Surface SD' 10-3/4" Surface 45.5/L-80/BTC 9.794 Surface 5,597' 7-5/8" Production 1 29.7/L-80/BTC-M 6.750 Surface 8,361' TUBING DETAIL 2-7/8" Tubing 6.5/1--80/EUE Srd 1 2.441 1 Surf 7,437' JEWELRY DETAIL No. Top MD Item ID 1 194' STAM1 Camco 2-7/8" x 1" Sidepocket w/ 0.25" DPOV 2.441" 2 7,165' STA#2 Camco 2-7/8" x 1" Sidepocket, w/Dummy GLV 2.441" 3 7,282' 2-7/8" XN Nipple - MIN ID 2.205" 2.205" 4 7,332' Bolton Discharge Head - 5 7,333' Ported Discharge Head - 6 7,334' Pump 3: PMP 538PMSXD 93 FLEX47 HS 7 7,356' Pump 2: PMP 538PMSXD 93 FLEX47 HS - 8 7,378 Pump 1: PMP 538PMSXD 20 GINPSHH H6 9 7,387' Gas Separator: 53BGSHW M M/C FER 10 7,391' Up er Tandem Seal: GSB3DB H6 SB/AB PFSA 11 7,398' Lower Tandem Seal: GSB3DB H6 SB/AB PFSA 12 7,405' Motor: MTR 562XP - Re -Rated to 297 HP/2,825 V/ 64 A 13 7,433' Sensor/ Centralizer; Zenith E7456175C w/Discharge PSI —Btm@7,437' OPEN HOLE /CEMENT DETAIL Cond Cmt to surface 13-1/2" Cmt w/ 342 bbls (Lead) 120 bbls (Tail) Cmt to Surface 9-7/8" Cmt w/ 56 bbls Class G Perf from 9,144' to 8,154'/Attempt to squeeze 10 bbls of 15.8 ppg Class G cmt thru perfs, no success WELL INCLINATION DETAIL KOP @ 789' Max Hole Angle PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (ND) Btm (TVD) FT Size /SPF/Status Kup. C-1 8,071' 8,128' 1 7,082' 7,139' 57 3-3/8" / 6spf/ Open Kup. B-7 8,144' 8,154' 1 7,154' 7,164' 10 3-3/8"/10spf/Isolated GENERAL WELL INFO API: 50-029-23567-00-00 Drilled and Cased, Kill String Installed by Doyon 14 -4/12/2016 Completion and Perforation by ASR 1 — 5/13/16 ESPSwap by ASR1-6/16/2019 Created By: TDF 7/9/2019 Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig AN Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 5/15/2019- Wednesday Well Kill- Bleed off IA and Tbg. Pump 485 bbls Produced water down Tbg taking returns up IA. Freeze Protect surface lines w/ 3 bbls 60/40. Monitor well, on vac, set BPV. 5/16/2019-Thursday Cont. Mobe eq. from Endicott, spot mud boat & rig on mud boat, Service rig Change oil/filters, dig out 1" BOPE stack on A pad, load on truck mobe to K pad, n/D tree & prep, lock open packer vent valve, N/U BOPE, Spot in ASR rig and equipment. 5/17/2019 - Friday Cont. R/U fluid lines & catwalk, spot spooler & containment. Function test BOPE, fill surface eq w/test fluid, shell test BOPE 250/2,500psi, repairing leaks as needed. Test BOPE as per Hilcorp & AOGCC requirements, AOGCC witness waived By Matt Herrera, test w/2-7/8" tj 250/2,500, Prep to unland and unset PKR. Crew change out, Lay down landing Joint, RU landing joint to Top drive, Unland @ 15K continue to ease up to 110k before the PKR released. Shut annular on landing jnt let elements on PKR relax. Attempt to circulate any gas under PKR out but pressured up to 1,500psi noticed wt falloff indicating that the PKR elements not relaxed. decided to lay down the hanger and string the ESP cable/Cap tubes to spooler. High Winds. Cont. to pull out of hole fighting the ESP dual PKR. over pull to 120K, Work tbg free but continue to drag 95k up wt having to work PKR through CSG collars. Lay dwn 4 jnts stopped seeing the PKR catch on the csg collars. L/D 2 mor ints . RU to circ. 6. 5bbls away caught pressure went to 1500psi no returns (Conduct Table top well control with third party). Called out wellhead rep to open GVV, open valve @ 2,600psi. Est. circ. @ 600psi lbbl/min bring rate up to 2bbl/min Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number I Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 5/18/2019-Saturday Continue to work pipe. P/U to 130klbs and hold for 5mins, mark pipe, set down to 5klbs string weight and mark pipe. Increase P/U weight to 144kibs in 5klbs increments watching for pipe movement on each down stroke and each up stroke. Pipe gradually working up hole. Hook load dropped off from 145klbs down to 75klbs. POOH w/ Summit ESP completion and Tri-Point PKR on 2-7/8" EUE TBG f/—7,100'md to—6,600'md. Hook load continuing to fluctuate between 140kibs and 75klbs while pulling. Work pipe whenever tight spots are seen. After 15 jnts laid down, 8bbls returns seen, indicating well is swabbing. R/U to circulate down TBG, taking returns through GLM mandrel and up IA. Circulate @ 0.5bpm, pressure increases to 1,900psi. Shut down pumps. Hook load dropped off to Oklbs. Pressure slowly bleeding off with pumps off. Pull up on string until and watch pressure slowly drop off. Unable to establish circulation by holding pressure and pulling pipe up hole. Bleed off pressure and continue to POOH. Attempt to break out of swivel, but connection from 2-7/8" EUE crossover to kelly cock valve broke loose. L/D joint of 2-7/8" EUE TBG and break off crossover. TQ crossover to kelly cock, to prevent from prematurely spinning out in the future. Swivel up to 2-7/8" EUE TBG and attempt to circulate with pipe movement again, in hopes of establishing circulation. Roll pumps @ 0.51313M, pressure increasing to 1,200psi, continue to work pipe up and down. Pump pressure from below the PKR preventing down movement. Turn off pumps and attempt to work pipe in order to establish circulation. No success. Continue to POOH w/ Summit ESP and Tri-Point PKR on 2-7/8" EUE TBG. Work pipe across any tight spots seen in an attempt to remove the obstruction that is preventing circulation. At "'6400'md swivel up to TBG and attempt to circulate. Walk pumps up to 0.5BPM @ 250psi, with full returns. Work pumps up to 3BPM @ 950psi w/ full returns. Circulate 130bbls (2x B/U volume from PKR) to ensure no gas has built beneath PKR. Shut down pumps, pressure bleed off instantly. P/U on TBG string and see immediate overpull (135klbs). Work pipe until hook load breaks over on the up and down stroke (34klbs down, 75klbs up). Swivel up and continue to POOH f/ "'6,400'md to—6,150'md while pumping, in order to prevent swabbing the well. Hookload continuing to fluctuate f/ 65klbs to 135kibs as we POOH. 1267' out, Crew change. continue to POOH while pumping rate @ 2bbl/min @ 75psi. saw overpull right away at pull up to 135k work try to work the string free. Could not work free and started to catch pressure on pump while working the string free. rate @ .25bbl/min @ 2,250psi. Killed pump and checked the GVV to make sure it was open after confirmation valve was still open decided to check circ with valve closed. pump rate the same .25bb1/min @ 2250psi. cont. to work pipe. Contact ASR leadership and discuss plan forward>>> plan forward is Spot 5 Bbls 15% acid at the PKR in attempt to clear and scale build up at the PKR elements and Slips. Prep to R/U Slick line. R/U Slick line RIH with Kick over tool and Dummy valve, set dummy in GLM @ 5,941' and pull dummy @ GLM @ 1,598' md. Start in the hole with Slick line. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API NumberWell Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 5/19/2019 -Sunday Slick line attempt to set GLM dummy valve in GLM # 1 @ 5,998'md. Unable to get it to seat. Dummy valve bent. Replace w/ new valve, RIH and set in GLM #1. Swap out running tool for pulling tool. RIH down to GLM It 2 and pull dummy valve from below ESP PKR @ 1500'md. R/D HES slick line. Attempt to circulate down the TBG taking returns up the annulus past the PKR/ obstruction. Able to circulate @ 0.5-0.25 w/ 2,200-2,400psi. Getting full returns, 1 for 1 throughout job. Wellbore holding pressure when pumps turned off. Bleed down pressure from TBG, Line up LRS and SLB to pump 5 bbls of 15% HCL acid. PT LRS to 250psi low, 3,OOOpsi high. No leaks. Perform P1SM w/ HES, LRS, IWS Rig Crew, SLB. Discuss details of the job. Pump 2bbls of fresh water, followed by 5 bbls of 15% HCL and chase into position across the PKR w/ 10bbls of pit fluid. Work pipe in an attempt to get free. Gradually work up to 140kibs on up stroke and squat down to Oklbs on the down stroke. No pipe movement. R/U slickline, pull upper GLM #3 dummy valve. Replace GLM # 2 w/ dummy valve. Line up to circulate. Establish circulation through GLM # 3 w/ 3BPM @ 150psi. No sign of obstruction. Shut down pumps and prepare to pump 10bbls of HCL followed by 8bbls of flake water, in order to spot the acid on top of the PKR. R/u LRS to pump 10 bbls 15% Acid through GLM #3 @ 1,447' and leave in annulus on top of the PKR @ 1,512'. Once Acid was spotted worked stuck pipe in 5K increments from max 20k down to 140k up wt. still no movement. RD LRS, RU Halliburton slickline, RIH set Dummy valve in GLM #3, While POOH with running tool started to see some u -tubing. Got out of the hole and monitor well. RD Slick line, Get a shut in pressure of 10psi open back up and let well equalize. RU Slick, RIH and retrieve Dummy valve at lower GLM #4 @ 5908'. RU to Circulate Acid out of the well and cont. double bottoms up @ 440 bbls 2 BPM @ 5/20/2019- Monday Continue to circulate the wellbore with 2 x B/U volume f/ the lower most GLM @—5,900'md. Attempt to work pipe free working hookload between 140klbs on the up stroke, and squatting down to Oklbs on the down stroke. Attempt to circulate conventionally. Work up to 2BPM w/ 400psi. Shut down pumps and bleed hydraulic pressure off of vent valve to close valve. Attempt to circulate conventionally again, 0.25BPM = 2,OOOpsi. Place work string in compression pushing with the rig until -2klbs is shown on the weight indicator. Close annular element on ESP cable, cap string, and hydraulic control line. Attempt to reverse circulate. Slight fluid leak around ESP cable, but able to get pressure up to 650psi w/ 0.33BPM. Attempt to work pipe free. No success. Decision made to cut the ESP cable, control line, and cap string, band all three to the 2-7/8" EUE TBG and sink the pipe across the annular without any line obstructions. Push the TBG into compression until weight indicator shows -2KIbs and reverse circulate. @ 1,300psi pump pressure w/ 0.3BPM TBG came loose and was able to move down hole. Bleed off pressure, open annular element and work pipe down hole until weight indicator breaks over. Weight indicator broke over w/ 21klbs hookload with downward movement. Work pipe up hole by pulling up to 90klbs and then working down hole until hookload weight breaks over in the downward motion. Worklnt 39 OOH. P/U ESP and cap string sheave and hang in mast. Reconnect all three lines so that we can continue to spool the lines on the way OOH. Continue to cautiously POOH breaking hookload over in the opposite direction, anytime the hookload increases/decreases outside our typical pulling parameters. (21klbs down, 55klbs up). 2,200'md OOH by change out time. Crews change out, Cont. pooh/w 2-7/8" EUE 6.5# until PKR @ 500' +- from surface. Not seeing any drag /w fluid on IA dropping with displacement of pipe. RU and Circ. 30 Bbls to ensure no gas under PKR, once PKR out fill IA 2.5Bbls to fill. ESP Cable pulled out of penetrating head @ PKR but Cap lines stayed attached. Pictures of Packer in well file. Cont. to POOH with ESP. 3,360' out of the hole perform well control drill. stop to check Fluids in Rig and equipment. Cont. out of the hole 5/21/2019 -Tuesday No activity to report. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig AN Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 5/22/2019- Wednesday Cont. to RIH w/ 6" tri -cone bit on 2-7/8" PH6 work string down to 8,071'md. No losses throughout trip in hole. SLB pumping on location @ 7am in prep for pumping acid flush across perforations. P/U WT = 64klbs, S/0 WT = 35klbs. Set down progressive increments of 2klbs on obstruction, picking up each time to break the hookload over before stacking more weight. Work down to 25kbs hook load with no movement. Swivel up to TBG stump and gain circulating parameters. Pump @ 2.5BPM conventionally w/ 120psi pressure. Work down onto obstruction w/ 2-3klbs and see no signs of pressure response. P/U and gain rotating parameters @ 60RPM =1500 ft -lbs w/ 2 BPM pump rate @ 160psi. 50k lbs P/U WT, 45klbs S/O WT. Set down on obstruction w/ 1k lbs and see quick TO response, stalling out power swivel. P/U and ease down until TO stabilizes around 2,500 ft -lbs. Allow weight and TO to mill off. Continue to work down easy seeing grabby TQ responses with light WOB. Obstruction seems to be pushing down hole. After chasing obstruction down hole —s' work pipe joint up and down to ensure P/U WT is not getting sticky. Shut down pumps, close annular and line up to reverse circulate. Work circulation rate up to 3.5BPM w/ 425psi reverse circulating. Circulate 4 x B/U = 200bbls. Returns coming back dirty w/ occasional rubber chunks. Set down w/ 3-5klbs WOB, rotating @ 60RPM and mill obstruction down to 8090'md. Hale no longer acting grabby, just slowly milling off. Returns coming back w/ rubber from PKR elements, w/occasional small pieces of metal. Apply HCL acid to some of the returns, no reaction. Unclear about what the obstruction might be that we are milling. Decision made to P/U off bottom and circulate, watching returns for more evidence. Reverse circulate @ 3.5BPM w/ 425psi, not seeing any pressure changes. Fine sand and pieces of rubber continue across the shakers. Decision made to see if we can punch through obstruction. Set down 8-10klbs WOB rotating @ 60RPM. and reverse circulating @ 3.5BPM w/ 450psi. TO smoothed out substantially, having hard time getting TO to increase with weight. Continue to progressively mill ahead down to 8,094'md. Tool joint beginning to enter annular, decision made to pump conventionally and open annular until TJ is clear of annular. Mill down to 8,100'md, shut down pumps, close annular, swap circulating path to reverse circulate again. Bring pumps up to 3.5BPM, work down to 8,100'md w/ bit. See large TO response, stalling power swivel. P/U to release TO. Hook load climbed up to 95klbs. Unable to up or down. Increase TO limit to 4,000klbs and work pipe in Sklbs increments f/ 70klbs P/U WT and 30kibs S/O WT up to 100k1bs. Increase TO limit to 5,000 ft -lbs and continue working pipe up to 150klbs P/U WT with no pipe movement. Decision made to pump acid around bit and work pipe for one hour, giving time for acid to react. Work pipe w/ 5klbs ft -lbs TO between 150kibs and 25klbs. Unable to make progress. Reverse circulate acid OOH until well bore pH level is above S. Treat acid returns in 500bb1 flow back tank w/ soda ash to neutralize. Continue to work pipe. Contact Baroid and put together lubricant pill plan. Borrow 2 drums of NXS lubricant from I -rig. Mix through bit. Allow to soak while working pipe w/ 5klbs TO and between 150kibs and 20klbs P/U and S/O W7. No success. Retrieve CSG jacks from A pad and bring to K pad location. Roads and pads on location w/crane to spot CSG jacks on wellhead. Shut down pumps and rotation. Strip off riser spool and flow spool from above annular, P/U CSG jacks and strip onto TBG stump, setting on annular. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 5/23/2019 -Thursday Continue to R/U CSG jacks. Stripping off flow spool, and riser from above annular and stripping on CSG jacks. Warm jack hydraulics with several functions. P/U on PH6 work string w/ rig elevators to 140kibs. Take over with CSG jacks, working straight pull increments of Sklbs. P/U to new hookload and hold to watch for any bleed off. No pipe movement seen. Work pipe up to 200kibs without any movement. Swivel up toTBG stump and circulate well bore while pulling with CSG jacks. Work up in 5klbs increments f/ 175k1bs to 205kibs. No pipe movement seen. Rig crew change out via helicopter. 2 crew members left on rig w/Co Rep until relief arrives on helicopter. Work pipe, prior to holding in tension @ 210kibs. Mix a series of Hi and Low visc sweeps while circulating conventionally down the work string taking returns through the choke out the IA. Circulate 1.2 x B/U 360bbls seeing indication of B/U on strokes at — 310bbls. Shut down pumps, secure well. Rig crews arrive. Perform team meeting introducing new crews and discussing objectives. Perform Sundry meeting with both crews and roll into pre -tour meeting with night crew. Night crew work through rig, introducing new hands to the equipment and systems on the ASR. Return equipment to A -pad that was on location from Endicott move. Strip off CSG jacks in prep for cutting work string and potential POOH. 5/24/2019 - Friday Crew change, fluid checks, equipment maintenance while standing by for helo to bring out a -line tools. Helo arrive w/ e - line tools, make up tool string consisting of 1-11/16 inch shooting ccl run on bottom, 7' 1-11/16 inch weight bar. Zero ccl at top of tubing stump and RIH @ 150fpm. P/U weight @ 7500'=875#, slack off @ 7500'= 500# continue to RIH and slow down to 60fpm @ 7800' and continue RIH to 8056' (pipe measurement) and set down. Attempt to work past very easily but continue to set down. Mark line and POOH. Make up string shot assembly and simultaneously put 4000 ft/lbs of torque in pipe and put 55K overpull in tubing string and set in slips Pick up 6' string shot w 2 wraps of 80grn RDX primer cord, 1' shooting ccl 1-11/16" diameter, and Tx 1-11/16" weight bar, RIH @ 120-150 fpm, P/U weight @ 7500'= 900#, S/O weight @ 7500' = 500#, RIH and Set down @ 8056' pipe measurement, attempt to work deeper but no luck, fire string shot and POOH, pull pipe out of slips and all torque in pipe, work out torque and work pipe, but still stuck. Make of radial cutting torch assembly 1-11'16" torch body w/ 2-1/16" centralizers, 1' shooting ccl, and 7' weight bar (both 1-11/16" diameter), pull 60K overpull on pipe and Rlh w/ radial cutting torch. RIH to 4500' and set down, attempt to work past but could not, POOH w/ cutter assembly. Inspect cutter assembly did not find any definitive wear marks on tool only found thick waxy oil no scale. Decided to run back in with RCT. Worked through the tight spot at 4500' cont. down had to work through a few more spots when working through we never saw any overpull made it to cutting depth of 8005' made cut. POOH RD E -Line. Latch on to tbg Pull into the string wt. @ 57k up, 37k dwn lay down 3 jnts. leaving 157 jnts of 2 7/8" 7.9# Ph6, 2 7/8" EUE box X 2 7/8" Ph6 pin, 4' 2 7/8" 6.5# EUE 8rd pup in the hole. Make up tbg hanger 2-7/8" EUE 8rnd top and bottom with 4" CIW "H" BPV profile. Land tbg EDT @ 7920'. top of fish @ 8005'. Start RDMO ASR#1 and Equipment. 5/25/2019 -Saturday RDMO ASR to L-29. 5/26/2019 -Sunday No operations to report. 5/27/2019- Monday No operations to report. 5/28/2019 -Tuesday No operations to report. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 6/5/2019 - Wednesday No operations to report. 6/6/2019 -Thursday MIRU ASR on K-44, Service Rig- changed oil and filters in engine, PTO, and Service 300 KW generator - changed oil and filters, returned service truck to VMS, Repaired Kerr pump, found 2 cut valve seals and repaired same. Stacked up BOP, Well but and Floor, stand up rig, secure rack pins and guy chains, spread Hercu-lite liner, spot new pipe handler, storage conex's, torque BOP stack;Crew change, perform PM's, fluid verification. Attempt to run new pipe handler from 100kW generator in TP trailer. Blow fuse on 100kW generator. Electricians on location to trouble shoot. Spot in replacement 100kW genset and wire in Koomey system as well as pipe handler. VMS on location to inspect Cummins diagnostics code. VMS continue to trouble shoot Cummings diagnostics code. Perform re -generation on exhaust system. SIMOPS: Crews function new pipe handler, walk through remote operations as well as hydraulic height adjustments. Roads and pads on location w/ fresh lake water for testing BOPE. Continue to prep for testing BOPE, finish N/U flow riser, fill stack and prepare to perform shell test. Test BOPE as per Sundry to 250psi low f/ 5 charted mins and 3,000psi high f/ 5 charted mins. AOGCC Rep Mathew Herrera waived witness to test. Leak found on pump end hydraulic valve # 2 during shell testing. isolate valve and proceed with test. VMS on location to inspect re -occurring NOx sensor failure on exhaust system. Plan to swap out sensor w/ new one from spare engine. Issues getting rig pump to build pressure. Pull apart fluid end and inspect springs, seats, and seals to ensure everything is working properly. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 6/7/2019 - Friday Continue Downtime on rig while VMS addresses the NOX sensor problem, SIMOPS: MIRU Little Red to circulate out diesel freeze protect from well - Take on 270 bbls Lake water and mix to 2% KCL -Check all fluids in generators , Continue to re- build fluid end on rig Kerr pump. Found —1/2 gallon of sand and gravel in intake manifold of pump. VMS continue to work on NOX sensor issue. Make up blanking sub pulling tool to landing joint - utilized new lay down machine. Pull blanking sub and BPV. Crews flushing suction lines to rig pump. Take on 150 bbls Lake water and mix to 2% KCL. Utilize Little Red and circulate out diesel from well. Pumped 50 bbls down backside and take returns up tubing/ reverse circulation and circ out back side with 150 bbls 2% kcl until clean returns pumping down tubing. RDMO Little Red. Take on 150 more bbls Lake water and mix to 2% KCL. Adjust New pipe handler and install different pipe guides and shorter gooseneck on lay down machine. Pressure test re-built rig pump to 2,000psi for good test. Use rig pump and circulate 50 more bbls down tubing to clear remainder of diesel from backside. Check well for no-flow back out lock down screws, pull hanger. Hanger pulled free @ 59K. Break out and lay down hanger and landing joint. Lay down 9 joints 2-7/8" PH-6 tubing allowing different crew members to operate and learn new lay down machine. Tubing pulling smooth @ 58 K with no sign of drag. Well on zero losses all circulated fluid went to flow back tank and hauled to ORT. Shut in and secure well. Install TIW and close pipe rams. Crew members clearing out dressing room, storage room, and clearing lockers for maintenance to clean dressing room tomorrow;Crew change. Perform fluid checks, daily equipment inspections, verify well control equipment, etc. When starting rig carrier back up and 100kW portable generator from fluid checks, it was noticed that the accumulator remote stations were no longer working. Operator notified Co Rep and TP prior to beginning trouble shoot of equipment. Issue ended up being ethernet cable that runs from TP trailer to rig carrier side pack. Swap out cable, system back running properly. Pull two joints OOH, steam noted coming from Cummins 600hp ISX engine. Shut down and inspect. 3" radiator hose blown. Contact VMS and have mechanic swap out hose. When hose repaired, bleed any air out of system. POOH w/ 2-7/8" 7. 9ppf PH6 cut work string from RCT cut @ 8,005'md to 3,276'md. Trip speeds varying between 600-900ft/hr. Well bore fluids remain stable, hole taking calculated fill volume every 15 joints. No losses or gains. Continue to tweak with operation of new pipe handler in order to get proper performance. PH6 P110 work string over torqued coming OOH. Having to swap tong dies frequently due to wear. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 6/8/2019 - Saturday Fluid checks on rig and gens. Continue POOH w/ 2-7/8" PH-6 6. 7# tubing. Break-out torque very high on connections, swapping broken tong dies as need and warming up every connection with sledgehammer. POOH with 104 joints total this morning for total pulled count of 255 joints plus 18. 83' cut joint ( -800 feet per hour pull rate). Cut joint very clean cut. Move out old work-string and move in Fishing BHA, drill collars, and 3.5" 10. 4# range 3, work-string. P/U wear bushing and prep to run (OD 10-7/8" - 10" ID). P/U landing joint and attempt to make up X-over for landing joint. Tongs and hydraulic pumps on rig not putting out enoughpsi. 3,200psi required for tongs and only 2,200psi generating. Troubleshoot hydraulics - adjusted aux pump and swapped from operation to rig up mode and back and forth a few times and hydraulic pressure recovered. pick up 1 joint 3. 5" work-string and make up x-overs to run wear bushing, slant in well head and ASR derrick make difficult to rotate off of wear bushing. Work pipe and rotate off of wear bushing. land wear bushing and secure with 3 LDS. Lay down landing joint. P/U and make up fishing BHA consisting of following : Overshot assembly w/ 2-7/8" grapple and seals (4. 7500D x 2-11/16 min ID), Bumper Sub (4. 7500D x 2. 2501D ), Oil Jar (4. 750 VOD n 2. 000), 6 D, ill Cullci o (4. 750 OD x 2. 2501D), Intensifier / accelerator (4. 750 OD x 2. OOID), Pump out Sub (4. 625 OD x 1-13/16 ID ), X-over (3-1/2" IF p x 2- 7/8" IF b 4. 750 OD x 2. 1251D). Crew change. Continue to M/U BHA as per Baker Fishing Rep. Once at work string, shut down rig and check fluids. SIMOPS: Re-pack doghouse after cleaning crew completed cleanse. Perform fluid checks on all working engines on location. 300kW generator, 100kW generator, Cummins ISX engine, Namco PTO, Jet Heater, 966 Cat Loader, 40kW generator. Inspect filter pods on rig pit centrifugal pumps. Verify well control line up. Operators caliper slips and elevators, inspect wellhead. RIH w/ Baker fishing overshot BHA on 3. 5" NC 3110. 3ppf adjusted weight work string f/ surface to-4800'md = 1066'/hr Verify well bore is providing proper displacement. 1 for 1 returns, no losses. Perform high H2S drill simulating faulty accumulator pump. Well shut in and crew muster in 3 mins. Perform AAR while crews eat lunch. Continue to RIH w/ Baker fishing overshot BHA on 3. 5" NC 3110. 3ppf adjusted weight work string f/-4,800'md t/ xxxx'md. Stop and gain fishing parameters. Baker Fishing rep on location in preparation for engaging fish. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations, 6/9/2019-Sunday Swap Crews and space out to land on fish. Once spaced perform fluid checks on rig and support equipment. Screw into work string and pump as lowering onto fish . Find TOF @ 20' in on jnt 195 ( 8,019' dpm)-Tubing pressure jumped to 1,200psi when landing overshot onto fish. Monitor tubing pressure with no leak-off. Bleed off tubing and screw swivel out of work- string. Set down 10K and pick up to 100K with no movement indicating latch on fish (up weight 86K for free pipe) Set down 40K and pull up to 100 k, set down 40 K and pull 160K, set pipe in slips and lower elevators to not damage draw-works carriage, jars fire with good indication, pull out of slips and pull 140 K and hold. No pipe movement. Repeat steps steadily for 4 hours. Stopping to screw in and pressure up on work-string. Pressure up on tubing to 1,500psi with 400psi leak off in 5 mins, pressure back up to 1,500psi and pressure falls to 1,440psi in 3 mins and no more leak off - bleed off pressure and screw out of work-string . Continue jarring - decision made to release from fish and pick up wash pipe. Hit total of 165 licks with jars. Attempt to release from overshot with right hand torque. Put 7,800-7,900 ft/lbs torque on swivel (max torque ) and attempt to work down and release. Unable to hit down on bumper sub hard so pulling up to string weight (86K) and setting full string weight down while holding 7,800-7,900 ft/lbs. Continue to attempt to release overshot from fish. Put 7,800-7,900 ft/lbs torque into pipe and hold torque while pumping tubing up to 2500psi, lose torque, continue turning pipe and pulling and release overshot from fish. Prep to POOH. Start to POOH w/ work-string up weight —90K and pipe pulling smooth. Continue POOH w/ 3. 5" 10. 4# work-string laying down to—5,400'md (750'/hr). Adjust catwalk to ensure trough is running square up to the floor and square in the parked position horizontal at ground level. Crew change, perform fluid checks on all motors, verify well control equipment, fluid line ups, well head valve alignment. Continue to POOH w/ Baker Fishing series 150 overshot assembly on 3.5" NC31 work string f/ 5,400'md to 4,600'md (800'/hr). Having difficulty getting work sting to slide down catwalk with pipe skate. Adjust pipe extension on the end of trough to have slight inclination. Inspect catwalk trough and find sheared bolt on exterior flashing, due to catwalk becoming off level. Level catwalk and function full stroke from horizontal to V-door. Continue to POOH w/ Baker Fishing series 150 overshot assembly on 3.5" NC31 work string f/ 4,600'md to BHA @ "220'md. (966'/hr) Hole fill 1 for 1 with metal displacement. Monitor well bore prior to pulling BHA through BOP stack. L/D Baker Fishing series 150 overshot BHA as per Baker Fishing rep. Overshot basket grapple in good shape. No indication of obstruction or damage seen in grapple, mill control, or cut lip guide. M/U Baker Fishing burn shoe / wash pipe BHA as per Baker Fishing rep. (6. 75" OD, 5. 625" ID, Burn Shoe = 3. 26', 2 jnts of 6. 375" OD, S. 625" ID, TWSP wash pipe = 58. 86' long, 6. 375" OD, 2" ID, Wash Over Boot Basket = 3. 02', Bumper sub, Oil Jars, (6) 4- 3/4" drill collars, Intensifier, P-out Sub, X-Over to 3. 5" NC31 work string. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 6/10/2019 - Monday Crew swap and fluid checks on all equipment. Rig, gens etc. Continue RIH w/ Wash pipe and shoe BHA, start p/u 3. 5"10. 4# work -string. Continue RIH w/ wash pipe assembly on 3. 5" work -string. RIH slowly to prevent well fluids from coming out top of tubing - dry valve too slow. Perform well control drill - Influx at pits - response time-lminute 40 seconds Well shut-in and secure -Walk crews thru using N2 back up system to shut in BOP's. Crews eat lunch. 125 jts in hole (1,000 feet per hour ). Continue RIH picking up with 3. 5" 10. 4# work -string. 16:00 hrs, joint 192 in hole with 193 in derrick (- 1,000' per hour). Stop with joint 193 in air and rig up Halliburton cementer to pump circulation for wash over. Continue R/U Halliburton Cementer, Test lines, start pumping and break circulation. increase rate getting rotating parameters;Crew change, PJSM w/ Halliburton, Baker Fishing, IWS crews. Halliburton take on fluids from rig pits. Having issues getting pumps to pressure up. Investigate. Pop -offs leaking. Re -set. Halliburton PT both pumps to 3,500psi. Visually inspect lines for leaks. Good test. Unable to bleed off line pressure from pump # 2. Decision made to bleed pressure off through rig choke. Pressure up kill line to 3,500psi behind Halliburton valve to avoid washing out valve. Equalize valve and bleed pressure through choke. Gain milling parameters at joint 193 (8022'md) 57k lbs down, 89k lbs up, 2.4k ft -lbs @ 40 RPM, ROT WT = 70k lbs, pump 7BPM = 2,000psi. Wash down over fish without obstruction 20' into jnt 195 (8,062'md). See pressure spike up to 3,000psi. Indication that we ran out of wash pipe and the TBG stump is bottoming out on our wash pipe x -over. Circulate 2 x B/U utilizing Halliburton pumps @ 7BPM w/ 2,000psi. See fine sand across the shakers after B/U. No losses while circulating. Returns 1 for 1. R/D Halliburton pumpers, R/D kelly hose, blow down lines. Prep to POOH w/ Baker Fishing burn shoe BHA on 3. 5" NC 31 work string f/ 8,062'md;P00H w/ Baker Fishing burn shoe BHA on 3. 5" NC 31 work string f/ 8,062'md to 7,200'md. Pipe handler not functioning properly. Shut down and investigate. Crews eat lunch. Tighten loose hydraulic fittings, function hydraulic dump valve, and start unit up in auxiliary mode. Unit running properly again. POOH w/ Baker Fishing burn shoe BHA on 3. 5" NC 31 work string f/ 7,200'md to 1,000'md. Hole taking proper fill. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number StartDate End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 6/11/2019 -Tuesday Crew swap and continue POOH w/ Wash Pipe BHA on 3. 5" 10.4# work -string. BHA @ surface. Check fluid levels in equipment, rig and generators. Lay down BHA up to last two joint wash pipe. accelerator, 6 drill collars, Hydraulic Jars, Bumper sub, and wash -over boot basket. Boot basket was 3/4 full of sand and small pipe/rust scale particles. P/U 3rd joint of wash pipe 6-3/8" - OD x 5-5/ 8" - ID and make up with 48 inch pipe wrenches and sledgehammer. Stand by for arrival of 6' and 4' extension for wash -pipe. Electrician repaired Pump #1 on accumulator. Make up 2 extensions for 10 foot addition to wash pipe and shoe assembly and add to hanging wash -pipe. Total wash pipe and shoes assembly length = 97. 74 long ( wash -over depth ). Make up Wash -over boot basket, Bumper sub, hydraulic Jars, 6 drill collars, Intensifier, Pump out sub, and X -over. Total BHA length = 318. 11'. Start RIH w/ Wash Pipe / Shoe BHA on 3. 5" 10. 4# work -string f/ surface to `5,000'md. 1,000'/hr. Continue to RIH /w Baker fishing wash pipe BHA down to top of fish @ 8,019'md. ("'1,000'/hr) No losses on trip in hole. Displacement 1 for 1. SIMOPS: PJSM w/ HES Cement and Baker Fishing. R/U and PT lines to 3,500psi in prep for washing over fish. Gain fishing parameters prior to washing over fish. P/U/W = 94KIbs, S/O/W = 57klbs, 7BPM = 2,000psi, ROT WT = 70klbs down, 75klbs up, 40 RPM = 2,500 ft -lbs. Note: circulation done utilizing two HES cement pumping units. Wash down to hard tag @ 8,085'md. No losses seen on circulation. Kick out hi-visc sweep to start job. Fluids came back very dirty on B/U circulation. Oil show and sand in returns. P/U 5' off of tag, rotate to 60 RPM = 2,500 ft -lbs TO, continue to pump @ 7BPM w/ 2,000psi and work down w/ burn shoe. Set down 1-2KIbs and see ratty TO response, jumping up to 5,000 ft -lbs and dropping off to 1,000 ft -lbs. Continue to work over obstruction seeing very ratty TO response (1,500- 6,000 ft -lbs) w/ 1-2 klbs WOB. Work down to 8,097'md and see TO completely fall off. Pump pressure 2,000psi throughout job. No change. P/U 20'md short jnt, dry tag obstruction. P/U and see slight drag coming off bottom. Kelly up to short joint, HES kick on pumps to 7BPM = 2,000psi, turn on rotary to 60RPM @ 2,500 ft -lbs TQ and squat 20klbs WOB without seeing TO response down hole. Assumption that we swallowed fish and are rotating on bit freely down hole. Unable to get TO response. Kick out high visc pill, pump @ 8BPM = 2,300psi, until B/U seen. R/D HES pump units, blow down circulation lines. Prep to POOH w/ Baker fishing wash pipe BHA f/ 8097'md. No losses seen on circulation, oil show in returns throughout circulation. POOH w/ Baker fishing wash pipe BHA on 3. 5" NC 31 work string f/ 8097'md. 1-2klbs drag seen coming oft bottom. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 6/12/2019- Wednesday Crew swaps and fluid check on all equipment, generators, rig. Continue POOH w/ 3.5" 10.4# work -string laying down. Clean pit #1 and cutting box sending fluids to G -I. BHA @ surface - shut down and let crews eat lunch. Lay down BHA, When attempting to lay down Wash -pipe boot basket had to get 60 inch pipe wrenches and come along to break out and lay down. Boot basket displayed deep junk cuts, wash pipe displayed several deep junk cuts, shoe was good shape with good indication of contacting bit. Inner lip of shoe was beveled in a way that would indicate covering top of bit. Lay down move out wash pipe bha and prep to P/U overshot fishing assembly. P/U over shot, bumper sub, hydraulic jars, 6 drill collars, accelerator, pump out sub and X -over from 3.5 If to 2-7/8"IF. Start p/u and RIH w/ overshot fishing BHA on 3.5 10.4# work - string. 25 joints in hole @ 1800 hrs. (1,000' per hour). Crew swaps and fluid check on all equipment, generators, rig. Continue to RIH w/ Baker Fishing overshot BHA on 3.5" NC31 work string f/ 1236'md to-3,850'md.(650'/hr). Having issues with pipe handler wireless remote. Tool losing connectivity from rig floor. Trouble shoot and work from ground level. Link Tilt hydraulic ram cylinders leaking, causing bleed off when picking up pipe from pipe handler. Shut down and swap out ram cylinders. Continue to RIH w/ Baker Fishing overshot BHA on 3.5" NC31 work string f/ 3,850'md to -5,600'md.(875'/hr). Drip seen coming from Cummins ISX diesel engine on rig carrier. Contact VMS and inspect. Fuel pump leaking. Swap out fuel pump and continue to RIH. Continue to RIH w/ Baker Fishing overshot BHA on 3.5" NC31 work string f/ 5,600'md to-8,020'md. (968'/hr). Kelly up establish fishing parameters 94Kup/56kdn. Rolled pump over at 1.5bpm while washing over fish 20' on jt 195 (8,021'). Pump pressure increased to 1,200psi set down 10k. PU to 103k and observed weight drop to 95k while maintaining 1,200psi pump pressure. PU 20' while maintaining pump pressure. Bleed pressure and LD jt 195. Dropped P sub opening dart and wait for it to fall. 6/13/2019 -Thursday With circulating sub open circulated 256 bbl Bottoms Up, Prep Rig to Trip out of hole. POOH on elevators w/ Baker fishing BHA on 3.5" NC 31 work string f/ 8021't/3,550' displacing every 10 Jts. Held PJSM with new crew changeout and fluid checks on all equipment. Cont POOH on elevators w/ Baker fishing BHA on 3.5" NC 31 work string f/ 3,550' t/Fishing BHA. Displacing every 10 As. LD 195 Its. Prep tools to handle Fishing BHA, LD Circulating sub (re -built for clean-out trip) excel lerator jars, 2 Drill Collars. Continue to L/D Baker fishing BHA. Swap to 2-7/8" handling equipment and 2-7/8" tong dies. Break out 2-7/8" PH6 cut joint (-12% 2 full joints of 2-7/8" PH6, crossovers and tri -cone bit. Last joint of PH6 shaved down in diameter 13' into the joint all the way to the shank of the bit (17'). With blinds closed, pressure up on the wellbore through kill line, up to 2,000psi. Shut in and observe. Pressure bleeding down 40psi/min with a slowing trend to 15psi/min after 10mins. 7bbls total pumped, 2bbls returned when bled down. R/U to test BOPE. Pull wear ring, set test plug, M/U 2- 7/8" and 3-1/2" test mandrels, fill BOP stack and perform shell test. Slight bleed seen on test, chase down leak on gland nut in cellar. Tighten and retest. Leak continued, found drip coming from Halliburton quarter turn valve rigged up on the pump side of the pressure system. Tighten and able to get shell test. Test BOPE as per Sundry to 250psi low f/ charted 5mins, 2,500psi high f/ 5 charted mins w/ 2-7/8" and 3.5" test joints. State rep Austin McLeod waived witness to testing. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 6/14/2019 - Friday PJSM with crew. Remove Test plug and install the the wear bushing, Prep rig to MU BHA 45. PU/MU Milling BHA #5 as following 6-3/4" Bladed Mill w/ 6-1/2" waterjets, Two 4-3/4" Boot Baskets, 4-5/8" Bit Sub, 4-3/4" Bumper Sub, 4-3/4" Oil Jar, Six 4-3/4" Drill Collars, 4-3/4" Intensifier, 4-5/8" Pump Out Sub. RIH w/ Baker Fishing overshot BHA on 3.5" NC31 work string t/2,000'. Crew grab lunch and check fluids in equipment. Cont RIH w/ Baker Fishing overshot BHA on 3.5" NC31 work string f/2,000' t/ 7,731'md. (1,150'/hr). No losses on tour, trip sheet 1 for 1. Crew change, verify fluid levels in equipment. Walk down circulations lines, verify Halliburton pumping equipment line up. PJSM w/ Baker fishing discussing milling operations. RIH to top of perforations @ 8071'md ORKB. Verify pipe count/tally. SIMOPS: Halliburton pumping PT system to 3,500psi in prep for milling. Gain milling parameters @ 8,071'md, P/U = 92k lbs, S/O = 59k lbs, ROT TO = 2500 ft -lbs @ 40RPM, pump pressure=1,250psi @ 6BPM, ROT WT = 70k Ibs. Shaker screens not keeping up with pump rate. Shut down and swap out screens. Pump @ 6BPM w/ 1,250psi and wash pipe down to 8,097'md ORKB. Tag up, setting 5k lbs WOB. P/U 5' and begin rotating @ 40 RPM. Work down past obstruction without seeing any TQ or WT response. Continue down to 8,021'md, WT indicator increased by 7k lbs while washing down, total loss of returns in pits. Unable to catch returns pumping @ 6BPM. P/U to top of perforations and contact OE. Decision made to wash down to CIBP @ 8,140'md. Work down f/ top of perforations with pumps rolling @ 3BPM. Work pipe down in 10' increments picking up and verifying hook load is not increasing as we work down. Tag CIBP on depth at 8,140'md. Pull off bottom (8,140'md) to top of perforation (8,071'md). R/U to pull on elevators. R/D kelly hose, blow down lines. POOH w/ Baker Fishing overshot BHA on 3.5" NC31 work strip f 8,071'md to "'1 830'md. (1250'/hr). 6/15/2019 -Saturday Cont POOH w/ Baker Millout BHA on 3.5" NC31 work string f/ 1,830'md t/BHA. L/D Baker Millout BHA, Pump Out Sub, Intensifiers, 6 Drill Collars, Oil Jars, Bumper Sub, Bit Sub, 2 Boot Baskets and 6-3/4" Junk Mill. Pulled 3-1/2" Work -string from pipe rack and put in pipe Basket to be sent to G&I for cleaning. Racked and Tally 2-7/8" 6.5# EUE L-80 8rd Production Tubing and ESP assembly. Spotted Cable Spooler and Hung Cable Sheaves. PU/MU and serviced new Baker Centrilift ESP assembly, String Cable and Cap String over Sheave, Make Motor and Cap connections. Feed well bore 5 BPH utilizing 2% KCL. Crew change, check fluid levels in equipment, perform well control line up verification, perform daily service list of rig floor equipment. Continue to RIH w/ Baker Centrilift ESP completion assembly. M/U discharge head and handling pup, RIH as per tally to XN nipple. Issue having tongs make up pipe to proper TO. Work on tongs. Contact Prostar and go through series of trouble shooting steps. Issue ended up being seized roller on M/U tong head causing the M/U tongs to bind and show false reading when making up pipe. Swap out roller on tong head and continue in hole. Continue to RIH w/ Baker Centrilift ESP completion assembly on 6.5# L-80 EUE TBG f/155'md to-'4,000md (^'500'/hr). Fill hole 5BPH w/ 2% KCL. Well remains on losses, unable to get fluid to surface. Test ESP cable and cap string every 1,000'md, clamp cable every connection for first 15 joints and then every other connection. Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date MP K-44 ASR 50-029-23567-00-00 216-038 5/15/2019 6/16/2019 Daily Operations. 6/16/2019 -Sunday Crew Change -out and PJSM, Check and service equipment. Continue to RIH w/ Baker Centrilift ESP completion assembly on 6.5# L-80 EUE TBG f/4,000'md to -'Tbg Hanger(-500'/hr). Fill hole 513PH w/ 2% KCL. Well remains on losses, unable to get fluid to surface. Test ESP cable and cap string every 1,000'md, clamp cable every connection for first 15 joints and then every other connection. PU 2-7/8" Landing Jt. Installed Hanger and Penetrator. Cut and Spliced Cable and Cap -String Connector, Installed same. Meg Checked connector. Landed Completion String SW 42K Up/39K DN. Installed BPV and RILDS. Completion Depths as following: Tbg Hanged, 51ts of 2-7/8" 6.5# L-80 EUE 8rd TBG , GLM @194', 231 Jts of 2-7/8" 6.5# L-80 EUE 8rd TBG, GLM (Dummy) @ 7,164', 31ts of 2-7/8" 6.5# L-80 EUE 8rd TBG, 2.310 XN Nipple @ 7,281', Discharge Head @ 7,332', Pump Section @ 7,333', Gas Separator @ 7,387, Upper Seal @ 7,390', Lower Seal @ 7,397', Motor @ 7,404', Centralizer (EOT) @ 7,435'. PJSM with crew change. RDMO ASR off well. ND BOP'S and NU the Production Tree and tested same. Move ASR and associated equipment to Moose Pad. 6/17/2019 - Monday No operations to report. 6/18/2019 -Tuesday No operations to report. )A Pic u A4 fh zl�o3 Regg, James B (CED) From: Regg, James B (CED) Sent: Friday, May 24, 2019 9:55 PM To: Cody Rymut - (C) Cc: DOA AOGCC Prudhoe Bay; Carl Linaman - (C); Phillip Shumake - (C) Subject: Re: [EXTERNAL] Re: BOPE Test For ASR on MPU K-44 �h(rcrA�;.r-1 Request to waive the BOPE test is approved. Sent via the Samsung Galaxy 58 Active, an AT&T 5G Evolution capable smartphone -------- Original message -------- From: "Cody Rymut - (C)" <crymut@hilcorp.com> Date: 5/24/19 9:37 PM (GMT -09:00) To: "Regg, James B (CED)" <jim.regg@alaska.gov> Cc: DOA AOGCC Prudhoe Bay<doa.aogcc.prudhoe.bay@alaska.gov>, "Carl Linaman - (C)" <clinaman@hilcorp.com>, "Phillip Shumake - (C)" <pshumake@hilcorp.com> Subject: Re: [EXTERNAL] Re: BOPE Test For ASR on MPU K-44 Im requesting a waive in this case since we plan to rig down and move once getting cut and hanging our string. Cody Rymut On May 24, 2019, at 9:27 PM, Regg, James B (CED) <jim.regg@alaska.gov<mailto:jim.regg@alaska.gov>> wrote: Are you seeking approval to postpone or waive the test? Sent via the Samsung Galaxy S8 Active, an AT&T 5G Evolution capable smartphone -------- Original message -------- From: "Cody Rymut - (C)" <crymut@hilcorp.com<mailto:crymut@hilcorp.com>> Date: 5/24/19 7:51 PM (GMT -09:00) To: "Regg, James B (CED)" <jim.regg@alaska.gov<mailto:jim.regg@alaska.gov>>, DOA AOGCC Prudhoe Bay <doa.aogcc. prudhoe. bay@alas ka.gov<ma iIto: doa.aogcc.prudhoe. bay@a laska.gov>> Cc: "Carl Linaman - (C)" <clinaman@hilcorp.com<mailto:clinaman@hilcorp.com>>, "Phillip Shumake - (C)" <pshumake@hilcorp.com<ma ilto: pshumake@hilcorp.com>> Subject: RE: [EXTERNAL] Re: BOPE Test For ASR on MPU K-44 Jim, We are in the process of cutting our stuck pipe @—8000'md w/ E -line. Our plan is to lay down 2-3 joints of work string and then hang the remaining pipe off of our TBG hanger prior to rigging down and moving off location. We are currently attempting to get down to depth with E -line, but we stacked out with our cutting tool much higher than planned. We are now looking at performing a cleanout run inside our work string with slickline in order to get our cutter down to depth. That being said, there is a chance we may run past midnight if things don't go as planned. Could we please request an extension order to complete our planned operation? Cody Rymut Rig Manager, ASR #1 Hilcorp, Alaska C:907-230-3594 crymut@hilcorp.com<mailto:crymut@hilcorp.com> From: Regg, James B (CED) [mailto:!im.reae@alaska.aov] Sent: Thursday, May 23, 2019 10:09 PM To: Cody Rymut - (C); DOA AOGCC Prudhoe Bay Subject: [EXTERNAL] Re: BOPE Test For ASR on MPU K-44 We can give you an extension for the BOPE test if needed. Sent via the Samsung Galaxy S8 Active, an AT&T SG Evolution capable smartphone -------- Original message -------- From: "Cody Rymut - (C)" <crymut@hilcorp.com<mailto:crymut@hilcorp.com>> Date: 5/23/19 4:54 PM (GMT -09:00) To: DOA AOGCC Prudhoe Bay <doa.aogcc.prudhoe. bay@alaska.gov<maiIto: doa.aogcc.prud hoe. bay@a laska.gov>> Cc: "Regg, James B (CED)" <jim.regg@alaska.gov<mailto:jim.regg@alaska.gov>> Subject: BOPE Test For ASR on MPU K-44 Jim, I'm looking for some guidance on how you suggest we move forward with our current situation. The ASR is over on MPU K-44. While performing a cleanout run we became stuck @ 8100'md and have been working to get free. Our weekly BOPE test is due tomorrow by midnight, 5/24/19 and there is a strong possibility we may not be able to work ourselves free due to the lack of availability of equipment with the Kuparuk bridge being closed. I'm planning to send out a test witness notification form, but we may slide past our test requirements deadline if unable to get free by tomorrow. Please let me know the proper course of action to ensure we don't fall out of compliance. Thanks! Cody Rymut Rig Manager, ASR #1 Hilcorp, Alaska C:907-230-3594 crymut@hilcorp.com<mailto:crym ut@hilcorp.com> The information contained in this e-mail message is confidential information intended only for the use of the recipient(s) named above. In addition, this communication may be legally privileged. If the reader of this e-mail is not an intended recipient, you have received this e-mail in error and any review, dissemination, distribution or copying is strictly prohibited. If you have received this e-mail in error, please notify the sender immediately by return e-mail and permanently delete the copy you received. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. THE STATE °fLASKA j 1. GOVERNOR MIKE DUNLEAVY Chad Helgeson Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Milne Point Field, Kuparuk River Oil Pool, MPU K-44 Permit to Drill Number: 216-038 Sundry Number: 319-182 Dear Mr. Helgeson: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.00gcc.olaska.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 Sda�f April, 2019. RBDMS �'�APR 161019 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 7n AAr. 95 9An RECEIVED APR 10 2019 AOGCC 1. Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown ❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing Q Change Approved Program ❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: ESP Change -out ❑✓ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Hilcorp Alaska LLC Exploratory ❑ Development ❑✓ • Stratigraphic ❑ Service ❑ 216-038 ' 3. Address: 3800 Centerpoint Dr, Suite 1400 6. API Number: Anchorage Alaska 99503 50-029-23567-00-00 • 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? C.O. 432D Will planned perforations require a spacing exception? Yes ❑ No ❑✓ MILNE PT UNIT K-44 - 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL0375132 / ADL03751: I MILNE POINT! KUPARUK RIVER OIL 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 8,370' . 7,376' 8,275' 7,283' 1,978 N/A N/A Casing Length Size MD TVD Burst Collapse Conductor 80' 20" 80' NIA N/A N/A Surface 5,563' 10-3/4" 5,597' N/A 3,580psi 2,090P si Intermediate 8,329' 7-5/8" 8,361' N/A 6,890psi 4,790P si Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Schematic See Schematic 2-7/8" 6.5 / L-80 / EUE 7,332' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): ESP Packer and N/A Packer: 2,812' MD (2,625' TVD) 12. Attachments: Proposal Summary D Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Strati ra hic g p ❑ Development Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 4/20/2019 OIL ❑✓ WINJ ❑ WDSPL ❑ Suspended ❑ GAS ❑ WAG ❑ GSTOR ❑ SPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ [I 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: Chad Helgeson Contact Name: David Haakinson Authorized Title: Operations Manager Contact Email: dhaaklnsOfl hilt f .Conn Contact Phone: 777-8343 Authorized Signature: Date: 4/9!2019 or COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: n I /✓l Plug Integrity ❑ BOP Test '� Mechanical Integrity Test ❑ Location Clearance ❑ Other: �! 95D17 PSL ( Sf -iIeP Post Initial Injection MIT Req'd? Yes ❑ No ❑ �,}G / q l7 Spacing Exception Required? Yes No Subsequent E] Form Required: /O'- �Q Y RBDMS APR 1 6 2019 L7 APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Ll I ��`� Z` -r.- . QRIGINAL Submit Form and rm 10-403 Revised 4/2017 Approved applica ion is valid for 12 months from the date of approval. ttachments � Duplicate K Hilcorp Alaska, LU ESP Change -Out Well: MPU K-44 Date: 04-02-19 Well Name: MPU K-44 API Number: 50-029-23567-00 Current Status: Online -ESP Producer Pad: K -Pad Estimated Start Date: April 2011, 2019 Rig: ASR Reg. Approval Req'd? Yes Date Reg. Approval Rec'vd: Regulatory Contact: Tom Fouts Permit to Drill Number: 216-038 First Call Engineer: David Haakinson (907) 777-8343 (0) (307) 660-4999 (M) Second Call Engineer: Taylor Wellman (907) 777-8449 (0) (907) 947-9533 (M) AFE Number: 1922202 Job Type: ESP Swap Current Bottom Hole Pressure: Maximum Expected BHP: MPSP: Max Inclination Max Dogleg: BPV Profile: 2,620 psi @ 7,125' TVDss 2,690 psi @ 7,125' TVDss 1,978 psi 35° @ 2,486' MD 5.4"/100ft @ 1,921' MD 2-1/2" CIW Type H 10 -day ESP Shutdown (9/13/17) 17.07 PPG 30 -day PBU Extrapolation 17.26 PPG Gas Column Gradient (0.1 psi/ft) Brief Well Summary: MPU K-44 was drilled and completed as a C and B7 sand producer in Q2 2016. The well has been a stable producer to date, but has been pump limited since inception thus leaving a considerable amount of upside for increased drawdown. A rig workover is planned to upsize the ESP to increase drawdown from the current ✓ —2,100 psig sand -face pressure to a target between 700-1,000 psig. Notes Regarding Wellbore Condition • MIT -IA with vent -packer closed passed to 1,500 prig on 8/25/19 • The 7-5/8" casing passed an MIT to 3,500 psig on 4/10/16 (during the original completion). • IA leak to adapter flange void identified in 2016. The leak is from the threads on the outside of the capillary string. The possibility exists of additional leakage from the control line or ESP penetrators. • Well currently completed with 7" Tripoint Vented Retrievable packer. o ESP packer was installed at time of drilling due to forecasted virgin Kuparuk reservoir pressure (9.7 ppg). The reservoir pressure has since decreased. � P,2' wPz> Co 3y 0'4 Objective: • Pull 2-7/8" Tubing String, two 124 -stage Summit ESPs, and 120 HP motor. • Install new Baker Hughes 450 HP motor, 20 -stage 538 GINPSHH ESP, two 93 -stage Flex 47 ESPs, and new 2-7/8" tubing. o Note that Summit ESP will need to be on location to pull pump/motor. They have requested a 72 -hour notice. Contacts are: Dane Benson (907-223-1467) or Casey Bertram (509-220-7485). Backup contact: Jim Johnson (907-229-9199) Pre -Rig Procedure: 1. Operate producer K-44 as long as possible prior to RWO. 2. Slick -line pull dummy valve from GLM @ 2,865' MD. 3. Clear and level pad area in front of well. Spot rig mats and containment. 4. RD well house and flowlines. Clear and level area around well. 5. RU Little Red Services. RU reverse out skid and 500 bbl returns tank. U Hileoca Alaska, LU ESP Change -Out Well: MPU K-44 Date: 04-02-19 6. Pressure test lines to 3,000 psi. 7. Pump at least 1.5x wellbore volume (110 bbls) with 8.5 ppg seawater or 8.4 ppg produced water down tubing. 8. Confirm well is dead. Freeze protect tubing/casing as needed with 60/40 McOH. a. Freeze protect is up to the discretion of the Wellsite Supervisor depending on timing for arrival of the ASR. 9. RD Little Red Services and reverse out skid. item atm i•1r71iT#11111:I M=SII077i0 11. NU BOPE house. Spot mud boat. Brief RWO Procedure: 12. MIRU Hiicorp ASR #1 WO Rig, ancillary equipment and lines to 500 bbl returns tank. 13. Check for pressure and if 0 psi pull BPV. If needed, bleed off any residual pressure off tubing and casing. If needed, kill well w/ 8.5 ppg sea water or 8.4 ppg produced water prior to pulling BPV. 14. Set TWC. _ o k,(- s �-- . 15. Test BOPE to 250 psi Low/ 2,500 psi High, annular to 250 psi Low/ 2,500 psi High (hold each ram/valve and test for 5 -min). Record accumulator pre -charge pressures and chart tests. a. Notify AOGCC 24 hours in advance of BOP test. b. Perform Test per ASR 1 BOP Test Procedure dated 11/03/2015. C. Confirm test pressures per the Sundry Conditions of approval. d. Test VBR ram on 2-7/8" test joint. e. Submit to AOGCC completed 10-424 form within 5 days of BOPE test. 16. Contingency: The tubing hanger has a possibility of failing a pressure test due to a leak from the IA to adaptor flange via threads on the capillary string. If BOPE test fails a. Notify Operations Engineer (Hiicorp), Mr. Guy Schwartz (AOGCC) and Mr. Jim Regg (AOGCC) via email explaining the wellhead situation prior to performing the rolling test. AOGCC may elect to send an inspector to witness test. b. With stack out of the test path, test choke manifold per standard procedure c. Conduct a rolling test: Test the rams and annular with the pump continuing to pump, (monitor the surface equipment for leaks to ensure that the fluid is going down -hole and not leaking anywhere at surface.) d. Hold a constant pressure on the equipment and monitor the fluid/pump rate into the well. Record the pumping rate and pressure. e. Once the BOP ram and annular tests are completed, test the remainder of the system following the normal test procedure (floor valves, gas detection, etc.) f. Record and report this test with notes in the remarks column that the tubing hanger/BPV profile / penetrator wouldn't hold pressure and rolling test was performed on BOP Equipment and list items, pressures and rates. 17. Bleed any pressure off casing to 500 bbl returns tank. Pull TWC. Kill well w/ 8.5 ppg sea water or 8.4 ppg produced water as needed. f/ dm' 18. Rig up spoolers for ''/<" control line an for ESP #1 RD cable. a. Summit ESP should be onsite for ESP pull. K Hilcury Alaska, LG ESP Change -Out Well: MPU K-44 Date: 04-02-19 b. Tripoint Packer representative is not needed onsite, but can be contacted at 907-283-0202 (Drury W i nfree). 19. MU landing joint or spear and PU on the tubing hanger. a. The PU weight during the 2016 ESP completion was 64K lbs / SOF = 37K lbs. b. Weights documented prior to setting of packer. (Block weight = 20K lbs). c. If needed, circulate (long or reverse) pill with lubricant, seawater, and/or baraclean pill prior to laying down the tubing hanger. 20. Recover the tubing hanger. Contingency (If a rolling test was conducted): MU new hanger or test plug to the completion tubing. Re -land hanger (or test plug) in tubing head. Test BOPE per standard procedure. a. Evaluate pulled tubing hanger for possible thread damage or source of past leak. If any damage is found on penetrators or cap string threads, dispose of tubing hanger and contact well head specialist for replacement. 21. Ensure vent valve is open across vent packer. Maintain control line pressure while releasing the packer. Full -open of the packer requires 2,500 psig plus the shut-in pressure. The valve begins to open at 1,370 psig. b. Note that this will reduce potential for trapped gas below the packer. 22. Slowly increase PU weight to release Tripoint retrievable packer. a. Shear force set at 40 klbs (straight pull) b. Estimated 18.5 klbs of tubing weight to packer. c. Previous completion PU weight was 67klbs, documented before packer set. d. Once packer is released, hydraulic control line to packer should be bled down to reduce personnel risk. This will allow the vented port to close, but annular communication should exist around the outside of the packer. 23. POOH and lay down the 2-7/8" tubing. Lay down Summit ESP. a. Send all tubing to G&I for washing and disposal. b. Note any sand or scale inside or on the outside of the ESP on the morning report. c. Look for over -torqued connections from previous tubing runs. d. Recover cable clamps that are in proper working condition. i. Reusable clamps should be sent to G&I for cleaning and to the materials warehouse for future reuse. e. The completion has the following amount of clamps/guards: i. 11 Body Clamps ii. 118 Cross Collar Cannon Clamps iii. 42 Half Clamps f. Approximately 2,812' of/<" control line to 7" Tripoint packer 24. PU new ESP and RIH on 2-7/8" 6.5# L-80 tubing. Set base of ESP assembly at±7,430' MD. a. Upper 2-7/8"x 1" Side -pocket GLM @ ±200' MD with 0.25" DPOV b. 2-7/8" tubing c. Lower 2-7/8"x 1" Side -pocket GLM with Dummy GLV d. 3 joints of 2-7/8" tubing U Hiliwrp Alaska. LL, ESP Change -Out Well: MPU K-44 Date: 04-02-19 e. 2-7/8" XN (2.205" No -Go) Nipple f. 1 joint of 2-7/8" tubing g. Downhole gauge for discharge temperature and pressure. i. Connected with a jumper from the lower sensor. Does not require a separate tech -wire. h. Pump #3 (93 -stage Flex 47) i. Pump #2 (93 -stage Flex 47) j. Pump #1 (20 -stage GINPSHH) k. Gas Separator I. 450 HP Baker Hughes 562XP Motor m. Motorgauge n. Base of ESP centralizer @ ±7,430' MD 25. Land tubing hanger. RILDS. Lay down landing joint. Note Pick-up and slack -off weights on tally. 26. Set BPV. Post -Rig Procedure: 27. RD mud boat. RD BOPE house. Move to next well location. 28. RU crane. ND BOPE. 29. NU existing Seaboard 2-9/16" 5,000# tree. Test tubing hanger void to 500 psi low/5,000 psi high. 30. Pull BPV. 31. RD crane. Move 500 bbl returns tank and rig mats to next well location. 32. Replace gauge(s) if removed. 33. Turn well over to production. RU well house and flowlines. Attachments: 1. As -built Schematic 2. Proposed Schematic 3. Blank RWO MOC Form Orifi. KB Bea.: 63.1'/GL Bev.: 29.3' @ 1,616 10-3/4^ 3 Est TOC@ TOW - Veil packer line 7-5/8" s4 - - Va TD= 8,370 (MD) /TD=7,376'(M) PB1D=8,275' (MD) / PBTD= 7,283(TVD) SCHEMATIC TREE & WELLHEAD Milne Point Unit Well: MPU K-44 Last Completed: 5/13/2016 PTD: 216-038 Tree Seaboard 2-9/16",5K Wt/ Grade/ Conn Seaboard 163/4" 3M x 11" 5M Multi bowl w/11" x 2-7/8" Tbg Hgr EUE 8rd Wellhead Top and Bottom with 4" CIW "H" BPV profile. Zea 3/8" NPT control lines, 4- STA#4 Camco 2-7/8" x 1" Sidepocket, DPOV GLV set 2/21/19 1/2" EUE x IBT KO on pup. CASING DETAIL Size Type Wt/ Grade/ Conn Drift ID I Btm 20"Conductor STA#4 Camco 2-7/8" x 1" Sidepocket, DPOV GLV set 2/21/19 78.6 / A -S3 / Weld Surface 80' 10-3/4" Surface 45.5 / L-80 / BTC 9.794 Surface 5,597' 7-5/8" Production 29.7 / L-80 / BTC -M 6.750 Surface 8,361' TUBING DETAIL 2-7/8" Tubing 6.S/L-80/EUE8rd 1 2.441 1 Surf 1 7,416' JEWELRY DETAIL No. Top MD Item ID 1 207' STA#4 Camco 2-7/8" x 1" Sidepocket, DPOV GLV set 2/21/19 2.441" 2 2,746' STA#3 Camco 2-7/8" x 1" Sidepocket, w/Dummy GLV set S/12/16 2.441" 3 2,812' 7" Tripoint Retrievable Hydraulic Set Dual ESP Packer w/vent valve 2.441" 4 2,865' STA#2 Camco 2-7/8" x 1" Sidepocket, w/ DGLV set 2/21/19 2.441" 5 7,208' STA#1 Camco 2-7/8" x 1" Sidepocket, w/Dummy GLV set 5/12/16 2.441" 6 7;257' 2-7/8" KN Nipple MIN ID 2.205" 2.310" 7 7,332' ESP Assembly OPEN HOLE / CEMENT DETAIL Cond Cmt to surface 13-1/2" Cmt w/342 bbis(Lead) 120 bb1s(Tail) Cmt to Surface 9-7/8" Cmt w/ 56 bbls Class G Perf from 8,144' to 8,154' /Attempt to squeeze 10 bbls of 15.8 ppg Class G cmt thru perfs, no success WELL INCLINATION DETAIL KOP @ 789' Max Hole Angle = 35.1 deg. @ 2,391' MD PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (ND) FT Size /SPF/Status Kup.0-1 8,071' 1 8,128' 7,082' 1 7,139' 57 3-3/8" / 6spf/ Open KUP. B-7 8,144' 1 8,154' 7,154' 1 7,164' 10 3-3/8"/10spf/Isolated G E NERAL WELL I NFO API: 50-029-23567-00-00 Drilled and Cased, Kill String Installed by Doyon 14 -4/12/2016 Completion and Perforation by ASR 1-5/13/16 Revised By: TDF 4/8/2019 K Hilrnru Alaska, I.LC BQ�ce, @1,616 PROPOSED SCHEMATIC Orig. KB Elev.: 63.1'/ GL Elev.: 29.3' 2 3 4 5 6 7 8 9 Est TOC @ 7,050 7-5/8' Q - .. ._ 5 TD = 8,370 (MD) / TD= 7,376(TVD) PBTD = 8,275' (MD) / PBTD= 7,283'MO) TREE & WELLHEAD Milne Point Unit Well: MPU K-44 Last Completed: 5/13/2016 PTD: 216-038 Tree Seaboard 2-9/16",5K Wt/ Grade/ Conn Seaboard 16 3/4" 3M x 11" 5M Multibowl w/11" x 2-7/8" Tbg Hgr EUE 8rd Wellhead Top and Bottom with 4" CIW "H" BPV profile. Zea 3/8" NPT control lines. 4- Conductor 1/2" EUE x IBT XO on pup. CASING DETAIL Size Type Wt/ Grade/ Conn Drift ID Top Btm 20" Conductor 78.6/A-53/Weld - Surface 80' 10-3/4" Surface 45.5/L-80/BTC 9.794 Surface 5,597' 7-5/8" Production 29.7 / L-80 / BTC -M 6.750 Surface 8,361' TUBING DETAIL 2-7/8" Tubing 6.5 / L-80 / EUE 8rd 1 2.441 1 Surf +/- 7,327' JEWELRY DETAIL No. Top MD Item ID 1 ±200' STAM3 Camco 2-7/8" x 1" Sidepocket w/ 0.25" DPOV 2.441" 2 ±7,190' STAH2 Camco 2-7/8" x 1" Sidepocket, w/Dummy GLV 2.441" 3 ±7,287' 2-7/8" XN Nipple MIN ID 2.205" 2.205" 4 ±7,327' Discharge Head - 5 ±7,328' ESP: 538PMSXD 93 -stage Flex 47 - 6 ±7,350' ESP: 538PMSXD 93 -stage Flex 47 7 ±7,372' ESP: 538PMSXC 20 -stage GINPSH - 8 ±7,398' Motor: 562XP 450 HP - 9 1 ± 7,430' 1 Centralizer - OPEN HOLE / CEMENT DETAIL Cond Cmt to surface 13-1/2" Cmt w/ 342 bbls (Lead) 120 bbls (Tail) Cmt to Surface 9-7/8" Cmt w/ 56 bbls Class G Perf from 8,144' to 8,154' /Attempt to squeeze 30 bbls of 15.8 ppg Class G cmt thru perfs, no success WELL INCLINATION DETAIL K0P @ 789' Max Hale Angle = 35.1 deg. @ 2,391' MD PERFORATION DETAIL Sands Top (MD) Btm (MD) I Top (TVD) Btm (TVD) FT Size /SPF/Status Kup. CB -1 8,071' 8,128' 7,082' 7,139' 57 3-3/8" / 6spf/ Open Ku -7 8,144' 8,154' 7,154' 7,161V 10 3-3/8" / lOspf/ Isolated GENERAL WELL INFO API: 50-029-23567-00-00 Drilled and Cased, Kill String Installed by Doyon 14 - 4/12/2016 Completion and Perforation by ASR 1-5/13/16 Created By: DAH 4/8/19 HHilcorp Alaska, LLC Hilcorp Alaska, LLC Changes to Approved Rig Work Over Sundry Procedure Date: April 91h , 2019 Subject: Changes to Approved Sundry Procedure for Well K-44 Sundry #: XXX -XXX Any modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to the AOGCC by the rig workover (RWO) "first call' engineer. AOGCC written approval of the change is required before implementing the change. Step Page Date Procedure Change HAK Prepared B Initials HAK Approved B Initials AOGCC Written Approval Received Person and Date Approval: Prepared: uperations manager Date Operations Engineer Date cl (v• - 033 Hilcorp Alaska,LLC Post Office Box 244027 Anchorage,AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage,AK 99503 Phone: 907/777-8547 scow JUN 0 201Fs June 5, 2018 RECEIVED Mr. Guy Schwartz Alaska Oil and Gas Conservation Commission JUN 0 6 2018 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 AOGCC Re: Conductor Annulus Corrosion Inhibitor Treatments 4/20/18-5/12/18 Dear Mr. Schwartz, Enclosed please find multiple copies of a spreadsheet with a list of wells that were treated with corrosion inhibiting casing filler in the surface casing by conductor annulus. The heavier than water "grease-like" filler displaces water to prevent external casing corrosion that could result in a surface casing leak. The attached spreadsheets include the well names, field, PTD and API numbers, treatment volumes and treatment dates. This treatment campaign represents primarily new Milne Point HAK drill wells along with two Northstar wells which previously had excavations and external surface casing leak repairs. If you have any additional questions,please contact me at 777-8547 or wrivard@hilcorp.com. 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U c ) RECEIVED • STATE OF ALASKA • JUN j Q 2016 ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND V6Gcc la.Well Status: Oil Q ' Gas❑ SPLUG 0 Other ❑ Abandoned ❑ Suspended lb.Well Class: 20AAC 25.105 20AAC 25.110 Development ❑✓ - Exploratory ❑ GINJ ❑ WINJ❑ WAGE WDSPL❑ No.of Completions: 1 Service ❑ Stratigraphic Test ❑ 2.Operator Name: 6. Date Comp.,Susp.,or 14.Permit to Drill Number/ Sundry: Hilcorp Alaska,LLC = Aband.: 5/13/2016 216-038/316-221 ` 3.Address: 7. Date Spudded: 15.API Number: 3800 Centerpoint Drive,Suite 1400,Anchorage,AK 99503 March 28,2016 50-029-23567-00-00 - 4a. Location of Well(Governmental Section): 8. Date TD Reached: 16.Well Name and Number: Surface: 3744'FSL,2020'FEL,Sec 3,T12N,R11 E,UM,AK April 8,2016 MPU K-44 ' Top of Productive Interval: 9. Ref Elevations: KB: 63.1' 17.Field/Pool(s):Milne Point Field 618'FNL, 1368'FWL,Sec 2,T12N,R11 E, UM,AK GL:29.3' BF:29.3' Kuparuk River Oil Pool , Total Depth: 10.Plug Back Depth MD/TVD: 18.Property Designation: 604'FNL, 1423'FWL,Sec 2,T12N,R11 E, UM,AK 8,275'MD/7,283'TVD (SHL)ADL375133(TPH/BHL)ADL375132. 4b. Location of Well(State Base Plane Coordinates, NAD 27): 11.Total Depth MD/IVO: 19.Land Use Permit: Surface: x- 584535 y- 6005880 Zone- 4 8,370'MD/7,376'ND N/A TPI: x- 587910 y- 6006836 Zone- 4 12.SSSV Depth MD/TVD: 20.Thickness of Permafrost MD/TVD: Total Depth: x- 587965 y- 6006850 Zone- 4 N/A 1,994'MD/1,940'ND 5.Directional or Inclination Survey: Yes ❑✓(attached) No ❑ 13.Water Depth,if Offshore: 21.Re-drill/Lateral Top Window MD/TVD: Submit electronic and printed information per 20 AAC 25.050 N/A (ft MSL) N/A 22. Logs Obtained: List all logs run and,pursuant to AS 31.05.030 and 20 AAC 25.071,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first.Types of logs to be listed include,but are not limited to:mud log,spontaneous potential, gamma ray,caliper, resistivity,porosity,magnetic resonance,dipmeter,formation tester,temperature,cement evaluation,casing collar locator,jewelry,and perforation record. Acronyms may be used.Attach a separate page if necessary RPO-DGR-EWR-ALD-CTN 2IN MD,DGR-EWR-ALD-CTN 2IN TVD 23. CASING, LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT. PULLED 20" 78.6 A-53 Surface 80' Surface 80' Cond Stg 1 L-278.5 bbls/T-63.5 bbls 10-3/4" 45.5 L-80 Surface 5,597' Surface 4,952' 13-1/2' Stg 2 L-195 bbls/T 65 bbls 7-5/8" 29.7 L-80 Surface 8,361' Surface 7,367' 9-7/8" 56 bbls • 24.Open to production or injection? Yes ❑✓ No ❑ i25.TUBING RECORD If Yes,list each interval open(MD/ND of Top and Bottom;Perforation SIZE DEPTH SET(MD) PACKER SET(MD/ND) Size and Number): 2-7/8"EUE 8rd 6.5# 7,416' 2,812'MD/2,625'ND 8,071'-8,128'MD/7,082'-7,139'ND Open 8,144'-8,154'MD/7,154'-7,164'ND Isolate``VrCOMPLE'ION 26.ACID,FRACTURE,CEMENT SQUEEZE,ETC. ,1 O TE, Was hydraulic fracturing used during completion? Yes❑ No Q 6 SPF,3-3/8" eiu` ,,,5rs J� _ tj3/1(/ Per 20 AAC 25.283(i)(2)attach electronic and printed information VERIFIED DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED LI- Perf 8,144'-8,154' 10 bbls, 15.8 ppg,Class G Y7. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): 5/18/2016 Gas Lift Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: 5/30/2016 24 Test Period ..♦285 135 737 N/A 474 Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): • Press. 203 280 24-Hour Rate 285 135 737 23 Form 10-407 Revised 11/201 CONTINUED ON E 2 Submit ORIGINIAL only f 44ftlibc yL (0 .zZ.—/f. /> MS `' JUN 1 3 2016 28.CORE DATA Conventional ): Yes ❑ No ❑, Sidewall Cores es ❑ No Q If Yes,list formations and intervals cored(MD/TVD, From/To),and summarize lithology and presence of oil,gas or water(submit separate pages with this form, if needed).Submit detailed descriptions,core chips,photographs,and all subsequent laboratory analytical results per 20 AAC 25.071. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ❑ No Q Permafrost-Top If yes, list intervals and formations tested,briefly summarizing test results. Permafrost-Base 1,994' 1,940' Attach separate pages to this form,if needed,and submit detailed test Top of Productive Interval 8,071' 7,082' information,including reports,per 20 AAC 25.071. SV1 3,007' 2,789' Ugnu MA 4,890' 4,362' Kuparuk Cl 8,070' 7,082' Lower Cretaceous U 8,128' 7,139' Kupurak B7 8,155' 7,165' Formation at total depth: Kuparuk 31. List of Attachments: Wellbore Schematic,Daily Drilling and Completion Reports,Days vs depth,MW vs depth, Directional Surveys,Casing and Cement Reports Information to be attached includes,but is not limited to:summary of daily operations,wellbore schematic,directional or inclination survey,core analysis, paleontological report,production or well test results,per 20 AAC 25.070. 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Cody Dinger Email: cdingerahilcorD.com Printed Name: Cody Di r Title: Drilling Tech Signature:`// G4 Phone: 777-8389 Date: e'/'b//6 INSTRUCTIONS General: This form and the required attachments provide a complete and concise record for each well drilled 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.All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC,no matter when the analyses are conducted. Item 1 a: 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 1 b: Well Class-Service wells:Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection, Observation,or Other. Item 4b: TPI(Top of Producing Interval). Item 9: The Kelly Bushing,Ground Level,and Base Flange 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 15: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report measured depth and true vertical thickness of permafrost.Provide MD and TVD for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 AAC 25.071 and,pursuant to AS 31.05.030,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first. Item 23: Attached supplemental records 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.Pursuant to 20 AAC 25.071,submit detailed descriptions,core chips,photographs,and all subsequent laboratory analytical results, including,but not limited to:porosity, permeability,fluid saturation,fluid composition,fluid fluorescence,vitrinite reflectance,geochemical,or paleontology. 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. Item 31: Pursuant to 20 MC 25.070,attach to this form:well schematic diagram,summary of daily well operations,directional or inclination survey,and other tests as required including,but not limited to:core analysis,paleontological report,production or well test results. Form 10-407 Revised 11/2015 Submit ORIGINAL Only 11 • • Milne Point Unit Well: MPU K-44 SCHEMATIC Last Completed: 5/13/2016 Hilcorp Alaska,LLC PTD: 216-038 Orig.KB Elev.:63.1'/GL Elev.:29.3' TREE&WELLHEAD �a Imins k .1 Tree Seaboard 2-9/16",5K t* 4 ' Seaboard 16 3/4"3M x 11"5M Multibowl w/11"x 2-7/8"Tbg Hgr EUE 8rd 20" - Wellhead Top and Bottom with 4"CIW"H"BPV profile.2ea 3/8"NPT control lines.4- I 1/2"EUE x IBT XO on pup. I ES Cementer_ @'bls CASING DETAIL Size Type Wt/Grade/Conn Drift ID Top Btm '' 20" Conductor 78.6/A-53/Weld - Surface 80' 10-3/4" Surface 45.5/L-80/BTC 9.794 Surface 5,597' " 7-5/8" Production 29.7/L-80/BTC-M 6.750 Surface 8,361' 10-3/4"_m TUBING DETAIL 2 2-7/8" Tubing 6.5/L-80/EUE 8rd 2.441 Surf 7,416' _ F C— JEWELRY DETAIL 9 No. Top MD Item ID 1 207' Camco 2-7/8"x 1"Sidepocket,w/Dummy GLM 2.441" 2 2,746' Camco 2-7/8"x 1"Sidepocket,w/Dummy GLM 2.441" 4 3 2,812' 7"Retrievable Hydraulic Set Dual ESP Packer 2.441" I 4 2,865' Camco 2-7/8"x 1"Sidepocket,w/Dummy GLM 2.441" 5 7,208' Camco 2-7/8"x 1"Sidepocket,w/Dummy GLM 2.441" 6 7,257' XN Nipple 2.310 7 7,332' ESP Assembly - 5 OPEN HOLE/CEMENT DETAIL 7 s Cond Cmt to surface III: 13-1/2" Cmt w/342 bbls(Lead)120 bbls(Tail)Cmt to Surface Mt 7 9-7/8" Cmt w/56 bbls Class G MiXt war Perf from 8,144'to 8,154'/Attempt to squeeze 10 bbls of 15.8 ppg Class G cmt thru perfs,no success IWELL INCLINATION DETAIL _k KOP@789' Li" Max Hole Angle=35.1 deg.@ 2,391'MD GENERAL WELL INFO API:50-029-23567-00-00 Drilled and Cased,Kill String Installed by Doyon 14 -4/12/2016 Completion and Perforation by ASR 1-5/13/16 PERFORATION DETAIL Sands Top(MD) Btm(MD) Top(ND) Btm(ND) FT Size/SPF/Status Kup.C Sands 8,071' 8,128' 7,082' 7,139' 57 3-3/8"/6spf/Open TOC@ Kup.B Sands 8,144' 8,154' 7,154' 7,164' 10 3-3/8"/10spf/Isolated Est7,050' a i-r J�- MIPIIIIir--4111iii 14=1 V VV.- 41 '5' 7-5/8" I IC TD=8,370(MD)/TD=7,376'(WD) PBTD=8,275'(MD)/PBTD=7,283'(WD) Created By:CJD 6/10/2016 S • Hilcorp Energy Company Composite Report Well Name: MP K-44 Field: Milne Point County/State: ,Alaska 1(LAT/LONG): evation(RKB): API#: Spud Date: 3/28/2016 Job Name: 1610551D MP K-44 DRILLING Contractor AFE#: 1610551D AFE$: $4,737,500 Activity Date Ops Summary 3/26/2016 Continue rig down and prep for rig move.;Demob from B-28 and mob to K-44. Clean and haul equipment from Baker pad to Kilo. Set surface stack and diverter "T"offline prior to rig move.;Set mats and spot rig over well K-44. Fit diverter line our ODS cellar as per approved drilling program. Skid rig floor. Rig accepted @ 00:00.;Nipple up diverter stack,"T",Knife valve and diverter line. Tq all flanged connections w/gaskets installed. Hook up koomey lines. Sim ops-Set mats and spot rockwasher. Continue rig up. 3/27/2016 Continue Rig up on K-44.R/U floor service lines,load DP in pipe shed,Pressure up Koomey,inspect for leaks,remove snow from cellar to access conductor outlets.;Note:PJSM with PEAK on moving the camp and shop.Facility Electricians disconnect camp from Shore Power.Move Camp and Shop to K-Pad.;Slip and cut 57'drill Iine.;Service Top Drive, Blocks and Draw works.;Inspect saver sub.Didn't pass inspection.C/O saver sub.Start Pre Spud Derrick Inspection. Continue to spot secondary equipment,support shacks ect.Spot Rig Camp and Shop.;Install mousehole. Load,strap and tally DS-50 drill pipe in shed. Sim ops- test gas alarms. Dress shakers for spud.;P/U and rack back 62 stds of DS-50,5"S-135 drill pipe. Drift=2.38". Load 570 bbls 8.8 ppg spud mud in pits.;Bring tools and handling equipment to rig floor. Stage bit,xo's,wear bushing and running tool.;M/U running tool. Install wear bushing(15-3/16"ID). RILDS.B/0 and laydown running tool. Load,strap and tally 5"HWDP in shed.;P/U and rack back 6 stds 5"HWDP(jars included)in derrick. Drift=2.38". TIH w/stand and tag up @ 37'MD. Csg lockdown screws @ 34.00'.;Flood surface lines. Inspect and look for leaks(ok). PIT surface lines T/3700 psi.(ok). B/D TDS.;Download MWD tools in shed. Setup pulser for 750 gpm w/9.5 ppg mud(max). Perform thorough derrick inspection(ok). Service rig.;Hauled 75 bbls from L-Pad lake for total=75 bbls 3/28/2016 Perform Diverter System Test with no issues.Accumulator Test:3000 psi start,1850 psi after closure,200 psi recharge 30 sec.Full recovery 141 sec. N2 bottles 6@ 2000 psi average.;Test witness waived by Brian Bixby with AOGCC.;Continue clean and organize rig while down load MWD tools in pipe shed. Flood Diverter stack with water,check for leaks.;MU BHA with 13-1/2"Baker VMD-3 bit,Mud Mtr,xo to HWDP.Tag @ 37';Clean out conductor from 37'to 120'.;Drill 13-Y2"hole from 120'to 220'.PUW 65K,SOW 65K,Rot 65K,50 Rpm,550 GPM/950 PSI.Circulate hole clean.;POOH to mud motor.Blow down Top Drive.Facility and rig electrician's put Rig on shore power.Both camp and rig on Shore Power.;PU and MU 13-1/2"directional drilling BHA#1. Upload MWD tools. RIH w/w/flex DC's T/220'MD.;Drill ahead F/220'-T/836'MD(835'TVD)w/13.5"directional assy. 600 gpm,1630 psi on,1570 psi off,48%flow,80 rpm,2k tq on/off. Saw packing off issues during connection @ 368'MD.;Screen up as shakers allow to manage increasing mud wt due to solids.;Drill ahead F/836'-T/1470'MD(1458' TVD)w/13.5"directional assy. 550 gpm,1480 psi on, 1430 psi off,46%flow,80 rpm,2k tq on/off. Pump 30 bbl hi vis sweep @ 1350'w/no increase;Hauled 575 bbls to MP G&I for total=575 bbls Hauled 0 bbls to GPB G&I for total=0 bbls Hauled 0 bbls to B-50 for total=0 bbls Hauled 580 bbls from Vern Lake for total=580 bbls;Hauled 469 bbls from L-Pad Lake for total=544 bbls Daily losses to formation 0 bbls for total=0 bbls Last svy @ 1353'MD,6.5'High,4.6'Right 3/29/2016 Drill 13-1/2"hole F/1470'-2100' (630')AROP 105 FPH, 560 gpm/1650 psi on/1430 psi off, 80 rpm,3-4k tq on/1-2k tq off.PU 125K/SO 117K/Rot116K,MW 9.3+;Drill 13-1/2"hole F/2100'-3005' (905')AROP 151 FPH, 650 gpm/2100 psi on/1840 psi off, 95 rpm,4-6k tq on/3-4k tq off.PU 140K/SO 130K/Rot 130K, MW 9.5;Drilled into Hydrates @ 2400'.Control drill @ 500 gpm/150 FPH to 2531'.Max gas @ 5238u,declining to 1200u at Kelly down.;Gas spiked to 8400 units when bring pumps on after connection,then started declining. Drilled into Hydrates again @ 2900'peaking @ 7200u.;Added 1.5ppb of DRILTREAT to counteract the entrained gas hydrate mud(0.3 ppg less with un-pressurized scale)and continued to control drill;adding Drill N'Slide to help breakout any entrained gas.;Pump 40 bbls Hi Vis Sweep to surface.Circulate hole clean for wiper trip.Minimal increase in cutting at shakers. Monitor well(static). B/D TDS(blowdown top drive);POOH on elevators F/3,005'-T/2394'MD. Tight spots @ 2805',2657',2474',2444',2412',2388'. Work through on elevators w/30-50k over. 140k up, 122k dn, 130k rot.;Encountered tight spot @ 2394',unable to work past on elevators. Backream F/2394'-T/741'(BHA). Backreamed to 1402'with moderate packing off,stalling and overpulls.;Significant packoff,stalling&overpulls F/1402'-T/560'MD. Backream @ 400-600 gpm,30-40 rpm w/60 ft/min max pulling speed. Hole unloaded @1250'MD. Pull slow to cleanup hole.;Saw mostly clay and sand w/shards of coal while hole was unloading. Attempted to pull on elevators several times but saw immediate overpulls w/30k max before cont backream ops.Last no go @ 650';POH on elevators F/560'-T/surface w/no issues. BHA had light balling. Clean and inspect bit(1/16"under gauge). Clean and clear rig floor.;Rig Svc-Grease blocks,TDS,IR and Drawworks.;TIH F/ surface-T/ 2060'MD. Orient mtr work past obstruction @ 2007'MD no pump. Hole took proper displacement for trip thus far.;Last svy @ 2959'=.05'High and 12.27'Right of plan.;Hauled 1824 bbls to MP G&I for total=2399 bbls Hauled 75 bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 fort total=0 bbls Hauled 580 bbls from Vern Lake for total=1160 bbls;Hauled 1124 bbls from L-Pad lake for total=1668 bbls Daily losses to formation 0 bbls for total=0 bbls gli3/30/2016 Continue to TIH on elevators f/2007'to '.Kelly up and work through tight spot @ 2063'.ContinuIH on elevators to 2818'with no issues. Wash/ream last 2 stands to bottom f/2818'to 3005'.;Drill 13-1/2"hole F/3005'-3400' (395')AROP 99 FPH, 570 gpm/2040 psi on/1760 psi off, 95 rpm,5-7k tq on/5-6k tq off.PU 162K/SO 131K/Rot 143K,MW 9.5.;Drilled into Hydrates @ 3079'w/3819u peak gas.3289'@ 9850u.Wt up F/9.6 ppg-T/10 ppg while drilling ahead.;Drill 13-1/2"hole F/3400'-4135' (735')AROP 113 FPH, 650 gpm/2440 psi on/2270 psi off, 95 rpm,7k tq on/5-6k tq off.PU 176K/SO 135K/Rot154xK, MW 10.;Drilled into Hydrates @ 3483'w/9845u max gas.BGG lingering remaining @ 7000u.;CBU 2x while maintaining mud IN/OUT @ 10.0 ppg. 650 gpm,2300 psi,46%flow,70 rpm,7k tq. BGG @ 5000 units before BU and 2990 units after lx btm's up. Leveled off @ 2900-3000 units after 2nd BU;Shut dn pumps. monitor well Momentarily(gas breaking out but not flowing). Work string up and down with no pumps. CBU @ 700 gpm w/2475 psi,47%flow. BU gas showed no change(2990).;BGG coming from entrained gas in mud. Continue treating mud for entrained gas. .3 ppg pressure/non pressure scales.;Drill 13-1/2"hole F/ 4135'-4295' (160')AROP 54 FPH, 650 gpm/2440 psi on/2270 psi off, 95 rpm,7k tq on/5-6k tq off.PU 176K/SO 135K/Rot154xK,MW 10;Wt up F/10.0 ppg to 10.2 ppg on the fly while drilling ahead. BGG went from 2990 units to 1100 units avg.;Drill 13-1/2"hole F/4295'-T/4633'(338')AROP 56'FPH, 638 gpm/2411 psi on/2340 psi off, 90 rpm,8.8k tq on/7k tq off.PU 176K/SO 135K/Rot154xK,MW 10.2, 10.7 ECD's,20k wob,790 bgg.;Pump 30 bbl hi vis sweep w/condet @ 4488'MD. 50%inc in cutting,mostly clay. Last Svy @ 4563'-2.5'Low and 2.7'Right of plan.;Hauled 1290 bbls to MP G&I for total=3689 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 290 bbls to B-50 for total=290 bbls Hauled-bbls from Vern Lake for total=1160 bbls;Hauled 840 bbls from L-Pad Lake for total=2508 bbls Daily losses to formation for total=0 bbls 3/31/2016 Drill 13-1/2"hole F/4633'-T/5349'(716')AROP 59'FPH, 650 gpm/2420 psi on/2340 psi off, 90 rpm,10.5k tq on/8.5k tq off.PU 212K/SO 150K/Rot 176K,MW 10.2, 10.4 ECD's,25k wob,510 bgg.;Drill 13-1/2"hole F/5349'-T/5605'(256')AROP 43'FPH, 650 gpm/2440 psi on/2360 psi off, 90 rpm, 10.8k tq on/9k tq off. PU 212K/SO 150K/Rot 176K,MW 10.2, 10.4 ECD's,30k wob,390 bgg.;TD surface directional plan @.4'High and 4.5'Left of plan.;Circulate and condition mud ©TD 5605'MD/4959'TVD. Circulate and 725 gpm,2710 psi,43%flow,85 rpm,10k tq,380 bgg. Drop YP to 25,pump hi vis sweep(25 bbl);C/O swab and liner#1 MP(#2 pod). Sweep was strung out w/very slight increase in cuttings(low pump rate).;Monitor well(static). Pump out of hole F/5605'-T/4420'MD. 600 gpm,1990 psi,41%flow. P/U 215k,S/O 152k,Rot 180k,11.5k tq,40 rpm.;Tight @ 5141'. Backream F/5141'-T/5130'MD then continue pumping out of hole w/no rotation.;Hauled 969 bbls to MP G&I for total 4658 bbls Hauled 0 bbls to GPB G&I for total 75 bbls Hauled 290 bbls to B-50 for total 580 bbls Hauled 0 bbls from Vern Lake for total 1160 bbls;Hauled 857 bbls from L-Pad Lake for total 3365 bbls Daily losses to formation 0 bbls for total 0 bbls 4/1/2016 Pump out of hole F/4420'T 3575'MD. 600 gpm,1990 psi,41%flow. Gas increasing steadily.;Circ btm up©600 gpm.Max gas @ 6400 units.Hole unloaded. Back ground gas after btm up @ 500 units.Monitor well.Static.;Pump out of the hole F/3575'T/3000'.@ 400 gpm. Above high gas areas.;Circ btm up @ 700 gpm, While pulling slow F/3000'T/2812. Max gas at btm up 2200 units.Back ground @ 750. Monitor well.Static. MW in and out @ 10.4.;Pump out of the hole F/2812'T/2100 with just enough to fill the hole @ 2.5-3 bpm 180-250 psi. Hole taking the correct hole fill.Monitor well @ 2100'for 30 min. No flow but percolating good.;Decide to trip back to btm&bring MW to 10.5. RIH on elevators F/2100'T/5091'. Fill pipe. RIH on elevators F/5091'T/5605'.Wash last stand down.No fill.;Break circ pumping 10.5 MW.Stage up pumps to 8 bpm while mixing on the fly. Bring 10.5 STS.Stage up pumps to 600 gpm. Monitor gas units.back ground holding @ 900 units. Pump another 1.5 btm up.;Monitor well.Static.No gas breaking out. POOH on elevators F/5605'T/741'. With the hole taking the proper fill. Clean hole.;POOH w/BHA#1 F/741'-T/surface. Rack back 6 stds HWDP w/jars. L/D 8"NM Flex DC's w/XO. Drain mtr&B/O bit. Bit grade=5,5,WT,A,F,4,N,TD. L/D mtr. Download MWD,L/D same.;Clean and clear rig floor. Trip displacement=12 bbl loss to hole for total trip;Drain stack. BOLDS and pull wear bushing. Flush stack around load shoulder in wellhead.;C/O elevators to 10- 3/4"SLX 150T. P/U hanger and dummy run. Landout on depth as per Dean Norris(Wellhead Specialist). Mark and laydown same.;R/U Weatherford casing. Bring equipment to floor. R/U bail extensions,10-3/4"elevators(SLX 150T),false bowl,slips,power tongs, and Volant CRT.;PJSM,Run 10-3/4"BTC,L-80, 45.5#casing as per detail F/surface-T/ 530'MD. Make up float shoe,float collar then baffle jt(witnessed by-HES Rep Glen Fisher). Bakerlok shoe track;Check floats(ok).Tq connections T/10,750 ft/lbs. Tagged up @ 480'MD. Washed dn @ 3 BPM past obstruction w/no other issues. Continue RIH.;Hauled 622 bbls to MP G&I for total=5280 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 0 bbls from Vern Lake for total=1160 bbls;Hauled 488 bbls from L-Pad Lake for total=3853 bbls Daily losses to formation 0 bbls for total=0 bbls 4/2/2016 Run 10-3/4"BTC,L-80,45.5#casing as per detail F/530'T/2760'.Filling pipe ever 5 joints.Filling on the fly. Hit spots and work through on elevators @ 910', 2000'.;Floated pipe in F/2000'T/2760'.;Circ&condition mud.Crew change.Circ btm up plus. MW 10.4 in and out. No gas.;Run 10-3/4"BTC,L-80,45.5#casing as per detail F/2760'T/5559'.Filling pipe ever 5-10 joints.Filling on the fly. Clean hole after circulating.5-10 k bobbles. M/U hanger,land @ 5596'MD.;R/D 5'� Volant CRT and blowdown TDS. Load cmt head(DSM witnessed)and install same. R/U cmt line.;Circulate and condition mud staging pumps up. 4.5 BPM/580 15 psi ICP, 6 BPM/480 psi, 7 BPM w/FCP 580 psi. 10.4 MW IN/OUT w/21 YP. Unable to reciprocate due to handling equipment Iimitations.;Wait on cmtrs and rig . �� support to arrive. Arrival delayed due to current rig move blocking roadways to drillsite. Cmtrs onsite @ 18:30,Rack in and prep for cmtjob.;Rig support onsite @ 18:30,haul excess mud from pits and fill water tanks for cmt job. Prep pits. 250T elevators arrive on location @ 22:00 hrs. Attempt to reciprocate(365k-No breakover).;PJSM with HAK(DSM's),DDI,Peak,Halliburton cementers and Baroid rep. Cement 10-3/4"casing as follows: Wet lines from cmtrs. Test lines 3500 psi(ok),pump 60 bbls 10.8 ppg spacer w/dye(4bpm).;Drop bypass plug and load shut off plug in head. Batch lead @ 'K 02:23.Pump 279 bbls 11.7 ppg lead cmt(6 bpm/545 psi) 'C Pump 63 bbls 15.8 ppg tail cmt(2.1 bpm/240psi);Drop top plug(tattle tail-ok),Hal cmtrs chase with 20 bbls spacer @ 5 BPM/195 psi, Turnover to rig. Disp w/rig @ 6 bpm w/ICP 300 psi(full returns).;Lost returns @ 410 bbls into displacement @ 6 bpm, 1060 psi. Reduce rate T/3 bpm,930 psi. Continue disp iyi ©3 BPM. Intermittent returns. Flush stack w/black water;Bump plug©4977 stks into displacement(7.5 bbls early from calc). CIP @ 05:31 hrs. Hold 5 min& check floats(ok). Drop opening bomb(05:41)load closing plug. Cont on tomorrows report 4 4/3/2016 Pump 1 bpm ES cmt tool opened Ca.70 . Bring rate up to 3 bpm 350 psi trying to establish circu .Pick hanger off seat&got returns.Having to work hanger to keep returns.;Dump fluid to cellar&plug off dump valves. While trying different pump rates to establish circulation getting lots of clabbered up MUD/PUSH back with gravel&trace cmt. Circ 3 btm up total;while working hanger off seat to maintain returns.;Mud coming back 10.2 and clean. Land hanger on seat. Stiliggsaculation through hanger. Shut down to attempt to clear stack/hanger and dump valves of gravel.;Lost 200 bbl during displacement&circulating out cmt/Mud push.;Attempt to drain stack through dump valves.Dump until valves pack off. Pump water through annulus with rig pump. Packed off.;Work pipe 1' and get flow through flutes.Dump valves still packed off. Trying to free dump valves.Annulus plugged off. Dump valves stuck open.;Land hanger.Off seat 2". Well head still packed off with gravel.R/D cmt head.Replace valves on conductor to new 4"valves.Drain stack.Free annulus.Flush out flutes.Get hanger landed on mark.;Solid gravel in valves/hoses/stack.Unable to drain stack.;R/U annulus to rig pump. Flush out stack. R/U cmt head. Prep pits and truck for stage two.Load water to bump in case we lose returns.Well flowing out the dump valves while working on cellar.;Replace 4"valves on conductor.Clean 2'of solid gravel from cellar up to 3"rocks.;attempt to estabish circulation.Unable to get circulation. Pump away 10 bbl while staging up pumps.;Prep for second stage. Load water in pits. PJSM second stage cmt job.Charge lines.Line up to Halliburton.Test lines to 3500psi.Good.;Mix and pump 60 bbl 10.8 ppg mud push @ 3 BPM/200 psi w/dye. Established returns 10-15 bbls into mud push. Pump 195„bbl of 10.7#lead cmt @ 3.5 BPM/225 psi. Lost circ @ 90 bbls.;Reduce pump rate to 1.5 bpm/195psi and divert to cellar. Re-establish circulation 100 bbls into lead via conductor valves for remainder of job. Mud push @ surface 170 bbls into lead.;Pump 65 bbls of 15.8#tail cmt @ 1.5 bpm/225 psi. Cmt to surface @ 20 bbls into tail cmt. Drop closing plug(Witnessed by Shane Barber) Disp w/20 bbl H2O 4bpm/200psi. Turnover to rig.;Disp cmt w/10.4 spud mud @ 3 BPM/430 FCP. Landout plug @ 1308 stks(1346 stks calc) shift close @ 1300 psi. Psi up 1650 w/5 min hold.Bleed off(no flow). CIP @ 21:58.;Lost circulation several times but able to re-establish every time. Estimated cmt returned to surface 140 bbls,;Flush surface equipment w/black water. R/D cmt head,bail extensions and HES cmtrs. B/O and laydown landing jt.;Remove riser and L/D same. Function annular and flush same. N/D diverter"T"and DSA. Clean cellar and prep for N/U.;Hauled 1181 bbls to MP G&I for total=7063 bbls Hauled-bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 0 bbls from Vern Lake for total=1160 bbls;Hauled 457 bbls from L-Pad Lake for total=4787 bbls Note:AOGCC notified BOP test via email @ 4/3/16 04:12 4/4/2016 Continue N/D and wash diverter stack a ui ment. Mob multibowl from behind cellar and stage inside.;Install 10-3/4"casing hanger packoff assy. Install 11"x 5M Seaboard Multibowl wellhead assy.Test to 3000 psi(ok).;Nipple up 11"x 13-5/8"DSA. Nipple up 13-5/8"BOP stack. Dress upper w/2-7/8"x 5"VBR's blinds in middle and fixed body 5"in bottom.;R/U BOP test equipment. Set test plug w/5"test jt. Open annulus valve. Fill stack,kill and choke w/water. Bleed out air. Shell test 4000 psi(ok).;Test all components except annular to 250/4000 psi w/5 min hold on both. Test annular 250/2500 psi w/5 min hold on both. Chart and record all test.;Drawdown-3000 psi start,drawdown psi 1550,200 psi increase=39 secs,Full charge=193 secs. 6 bottle avg=2000 psi. No failures. AOGCC (Jeff Jones)waived witness via email.;See"O"drive under BOP test for component test sequence,test chart and AOGCC-BOPE Test Report. BOPE Test Report sent to AOGCC.;Install Wear Bushing. 10"ID x 28"length. RILDS. Service rig.;Bring BHA tools and equipment to rig floor. Prep for making up BHA.;PJSM, M/U 9-7/8"HDBS MM65(28K tq),7"mtr w/9.688"stab. M/U MWD. RFO=199.77°. Shallow pulse test(ok)-505 gpm,870 psi. PJSM,load sources-ALD&CTN.;RIH w/3 NM flex dc's and 3 stds HWDP out of derrick w/Weatherford combo jars. BHA length=486.79'.;RIH F/486'-T/766'w/3 stds excess HWDP out of derrick. Trip out and laydown 9 jts HWDP total F/766'-T/486'MD.:Hauled 562 bbls to MP G&I for total=7625 bbls Hauled-bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 855 bbls from Vern Lake for total=2015 bbls;Hauled 166 bbls from L-Pad Lake for total=4953 bbls;Daily losses to formation 0 bbls for total=260 bbls 4/5/2016 P/U 5"Dp F/486'T/1588'. Establish circulation and parameters @ 520 gpm,40 rpm,UP/DN 105/100k.;Wash down&tag @ 1614'.Drill ES plug&cmter @ 2- 3k wob. Circ btm up.Clean.Work through with and without pumps.Good.;P/U 5"DP F/1616'T/5450'.Tag cmt. Fil pipe&Break circ. Performed Kick while tripping drill. 1 min 20 sec response time.;BDTD. R/U head pin and circ lines.Fill choke and flush air out of surface equipment. Close top rams.Test casing to 2800 psi for 30 min. Good. Bleed off and R/D testing equipment.;Drill cmt F/5450'T/5505'. Drill BFL ADPT&plug 6'high @ 5505'.Drill cmt to FC&tag 5'high. Drill cmt T/5582'. Circ btm up. Mud coming back very thick&high PH.Treat mud to send to G&I.;PJSM,empty pits,pump 20 bbl hi vis sweep.displace to new 10 ppg LSND drlg mud pumping 7 bpm,530 psi,reciprocate and rotate 40 rpm,12k torque.;PJSM,monitor well,install FOSV,hang blocks.Cut/slip 59.5'drlg line.Inspect saver sub.Re- set and test crown saver.;Obtain SPR.P/U 200K,S/O 130K,ROT 166K.Drill cement f/5582'to 5589'tagging shoe 6'high.Drill shoe,cleanup rathole,drill 20' new formation to 5625'pumping 550 gpm,1370 psi,40 rpm,12k torq;Ream and pass thru shoe 4 times,pass thru w/pump off clean.;CBU,Condition mud for F.I.T with a good 10 ppg in/out;Parked in 10 3/4"casing above shoe @ 5590',close upper pipe ram, perform F.I.T to 12.5 ppg EMW using existing MW 10 ppg, apply 645 psi, 10 sec bled to 630 psi, 1 min 569 psi,5 min 358 psi.;and leveling off at 330 psi @ 11.3 ppg EMW.bleed off pressure,open rams. Note:1.6 bbls pumped, 1 bbl bled back.;Drill 9 7/8"hole F/5625'-T/6045'(440')AROP 98'FPH, 600 gpm/1860 psi on/1690 psi off, 80 rpm,11 tq on/9k tq off. PU 218K/SO 150K/Rot 175K,MW 10ppg, 10.72 ECD's,12k wob,220u bgg.;1.53 rotate hrs,0.15 slide hrs,last survey 1.35'below the line,7.75'right of the line.;Daily losses to formation 0 bbls for total=260 bbls;Hauled 925 bbls to MP G&I for total=8550 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 0 bbls from Vern Lake for total=2015 bbls;Hauled 226 bbls from L-Pad Lake for total=5179 bbls 4/6/2016 Drill 9 7/8"hole F/6045 T/6619'(574').95'FPH, 600 gpm/2140 psi on/1940 psi off, 80 rpmq on/9k tq off.PU 243K/SO 152K/Rot 184K,MW 10ppg, 10.72 ECD's,9-12k wob,75u bgg.;backreaming 30'on stands.ECDs climbing.;Drill 9 7/8"hole F/6619'T/7251 (632')AROP 114'FPH, 600 gpm/2140 psi on/ 1940 psi off, 80 rpm, 11 tq on/9k tq off.PU 243K/SO 152K/Rot 184K,MW 10ppg, 11.2 ECD's,9-12k wob,75u bgg.;Backreaming 90'to bring down ECDs. Slow ROP to 150-200 max.;Pump pressure spiked up.Packed off.No Circ. Attempt to free pack off with surging string.No luck. Work pipe&pressure up.Bleed off while working pipe.No luck.Rot 80 RPM&begin to pull pipe.;Back ream with no circulation pulling 5-10 k over pumping to fil the hole below us. No movement in fluid in the stack for three stands.Pull pipe F/7251'T/7000'. Shut down rot&work pipe 90'.;Above estimated HRZ top.;F/7000'T/7080'. UP/DN 250/150. Work 90'three times no pumps or rotation.Started getting flow with downward pipe movement. Rot 60 rpm and bring pumps on.Establish circ.;Stage pumps back up to drilling rate.Work pipe @ 80 rpm&circ btm up.Got shale&clay back @ 100%increase. Note:MWD pulser stopped detecting signal on btm up.;Pump out of the hole 600 gpm,2050 psi f/7064'to 5582'inside 10 3/4"casing,back ream F/5850'to 5772'due to 25k over pulls with increase in pump pressure.;Note Over pull when upper stabilizer going into 10 3/4"csg shoe,work down once and pulled thru easily.;Pump 30 bbl sweep with 5 ppb walnut and 15 gal condet @ 600 gpm,2000 psi,rotate 60 rpm reciprocate pipe 90'to cleanup possible balled BHA. Note:150%increase @ shakers mostly clay balls and sand.;Troubleshoot MWD pulser signal loss,attempt to restart pulser with no success.;Service top drive, flowcheck well,static.Mix and pump dry job,BDTD.;POH from 5582'to 505',flowcheck well before pulling BHA,well static.Continue POH,rack HWDP,jars and flex collars in derrick.PJSM,pull source.Plug in and read MWD tools.;Note:Correct displacement on trip out.;Last survey, 1.54'above the line,5.62'right of the line .47 slide hrs,8.66 rotate hrs. Daily losses 0 bbls,total 260 bbls;Hauled 518 bbls to MP G&I for total=9068 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 0 bbls from Vern Lake for total=2015 bbls;Hauled 504 bbls from L-Pad Lake for total=5683 bbls 4/7/2016 Download MWD.Decide to L/D MWD tools&Keep motor&DM collar. Grade bit.1-2-CT-G-1-NO-BHA. M/U new MWD.Shallow pulse test.Good. Latch 1 stand of NMFC.L/D top single to work Nuclear Sources.;BDTD,Install&RIH with Remaining BHA T/486', continue RIH t/5487'above shoe.Test tools while filling pipe @ 3000'. Good.;Service top drive,blocks and drawworks.;TIH on elevators f/elevators f/5487'to 6997',wash f/6997'to 7251'@ bttm.Load 30 bbl hi vis sweep in DP. Note:tag 30'of fill.;Drill 9 7/8"hole F/7251'T/7503'(252')AROP 31.5 FPH, 600 gpm/2250 psi on/2100 psi off, 80 rpm, 12 tq on/10k tq off.PU 252K/SO 165K/Rot 200K,MW 10.1 ppg, 10.49 ECD's, 10-12k wob,177u bgg.;At 7468'drop from plan to inclination of 33.28 deg down to 10 deg as per directional plan. Note:back reaming 90'on stands before connections.;Note:sweep back on time with 30%increase @ shakers,Pump another sweep @ 7255',30 bbls w/25 ppb walnut,and 15 gal condet,sweep back on time w/10%increase @ shakers.;Drill 9 7/8"hole F/7503'T/7665'(162')AROP 27 FPH, 600 gpm/2240 psi on/ 2100 psi off, 80 rpm, 12 tq on/10k tq off.PU 255K/SO 167K/Rot 204K,MW 10.2 ppg, 10.42 ECD's,6-12k wob,135u bgg.;Last survey,3.83'below the line,5.66' right of the line 3.57 slide hrs,5.49 rotate hrs. Daily losses 0 bbls,total 260 bbls;Hauled 637 bbls to MP G&I for total=637 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 0 bbls from Vern Lake for total=2015 bbls;Hauled 388 bbls from L-Pad Lake for total=6071 bbls 4/8/2016 Drill 9 7/8"hole F/7665'T/7985'(320')AROP 53 FPH, 600 gpm/2340 psi on/2240 psi off, 80 rpm,15 tq on/13k tq off.PU 254K/SO 165K/Rot 205K,MW 10.1+ ppg,10.72 ECD's,15k wob.;Drill 9 7/8"hole F/7985'T/8370'@TD(385')AROP 64 FPH, 600 gpm/2620 psi on/2390 psi off, 80 rpm,15 tq on/13k tq off.PU 263K/SO 170K/Rot 207K,MW 10.1+ppg, 10.7 ECD's,10k wob.;Back ream 30'before connections. Note:max gas 2943u©8081'.;Pump 30 bbl sweep hi vis sweep 600 gpm 2280 psi,sweep back 150 stks early w/60%increase in shale,sand and clay© shaker,bgg 164u. Flow check well,static.BDTD;Pull wiper trip f/8370'to 7000'pumping out 600 gpm,2150 psi.BDTD Correct hole fill on wiper.;TIH on elevators f/7000'to 8130',wash last 2 stds to bttm.No issues. Correct displacement on trip in.;Pump 30 bbl hi vis sweep 600 gpm 2350 psi,rot 60 rpm,work pipe.BU 444u gas.hole unloaded @ BU,sweep back on time w/ 10%increase cuttings @ shaker,circulate hole clean w/50u bgg,;Obtain SPR,Flow check well,static.;Pump out 600 gpm,2250 psi f/8370'into 10 3/4"casing @ 5520'with no issues. Correct displacement on trip out.;Pump 30 bbl high vis sweep 600 gpm,1700 psi,rotate 45 rpm working pipe,sweep back on time w/40%increase in cuttings @ shaker. Flowcheck well,static,mix and pump dry job.;Last survey,12.22'Above the line,4.55'right of the line 3.05 slide hrs,6.92 rotate hrs. Daily losses 0 bbls,total 260 bbls;Hauled 751 bbls to MP G&I for total=10456 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 0 bbls from Vern Lake for total=2015 bbls;Hauled 563 bbls from L-Pad Lake for total=6634 bbls 4/9/2016 Flow check well.Static.Pump Dry Job. BDTD. POOH Fl 5581'T/518';PJSM,L/D BHA#3 F/518'T/199'. L/D HWDP,&Jars. PJSM&Remove nuclear sources. L/D remaining BHA#3.L/D Bit. Grade-1-2-CT-G-X-NO-1-TD Well took 6 bbl over calculated hole fill.;Clean&Clear floor.;RIH with 5"dp&Mule shoe from derrick T/3500'.;L/D 5"DP F/3500'T/Surface.Correct displacement on trip out.;Rinse stack,B/O 4 LDS,pull wear bushing.Install test plug,monitor I/A. Remove 5"lower pipe ram and install 7 5/8"casing ram.;R/U 7 5/8"Test jt and testing equipment,open and monitor I/A,test 7 5/8"rams to 250/4000 psi 5 min each,charted.Good test.;Close I/A,R/D test jt and testing G.� equipment,R/U and make hanger dummy run per wellhead rep.;Load tools and handling equipment to rig floor,R/U 7 5/8"handling equipment and power tongs, l s ready FOSV with XO. Monitor well,static.;PJSM,Baker lock and M/U 7 5/8"shoe track.install 2 centralizers over stop collars 10'f/ea end on shoe jt,install 1 centralizer mid tube over stop collars on baker lock jt.;lnstall 1 centralizer over stop collar mid tube on float collar jt.Ensure proper float collar and float shoe operation.Utilize collar clamp -1 on first 10 jts ran.;P/U and run 7 5/8",L-80,29.7#BTC Casing per tally,use optimum M/U torque to base triangle @ 7376 ft/lbs,fill on the fly and every 10 jts ran. Install centralizers on every other jt;to 7600',12 centralizers total,RIH to 500`Hauled 347 bbls to MP G&I for total=10803 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 0 bbls from Vern Lake for total=2015 bbls;Hauled 350 bbls from L-Pad Lake for total=6984 bbls Daily losses 0 bbls,total=260 bbls /.(' c, 0- ,,c ,y, . ,,, 4/10/2016 P/U and run 7 5/8",L-80,29.7#BTC CIIP per tally F/500'T/5562'.;Circ Liner volume.Stage up pllig To 8 bpm,340 psi.;P/U and run 7 5/8",L-80,29.7#BTC Casing per tally F/5562'T/7000'.;Circ two open hole volumes.Stage up pumps To 8 bpm,470 psi.;P/U and run 7 5/8",L-80,29.7#BTC Casing per tally F/7000' T/ 8310'.;Tag @ 8310'.Unable to work past. Kelly up and start circ.Fighting packing off. Work pipe,Pumps&bleeder until establishing circ @ 2 bpm.;Stage up pumps to 6 bpm @ 650 psi. Circ btm up.Fine sand in returns. Wash down to 8317'.;Removed air slips to land hanger.M/U hanger&landing joint. Damaged joint when set on collars slips. R/U air slips.L/D Joint 203&P/U Joint 204.;Wash down staging pump f/6 bpm to 8 bpm f/8317'to 8323',M/U landing jt and hanger,P/U 293K,S/O 163K,continue washing down f/8323'landing hanger 30.45'RKB,shoe on depth @ 8359';PJSM with cementers,crew,truck drivers,mud man and DSM,BDTD,drop lower plug,witness upper plug loading,M/U cement head and lines.Flood lines w/water,test lines to 4000 psi 5 min.;Pump 40 bbls ,1 13.5 ppg tuned spacer 2 bpm,460 psi start,375 psi final,batch cmt,pump 56 bbls 14.5 ppg class G lead,start 4 bpm,611 psi,final 2 bpm,185 psi.flush cement ,/ lines and Blow down.;Swap to rig pump,drop upper plug,displace with water pumping 6 bpm,320 psi start,increase to 8 bpm,520 psi,360 bbls away slow pump f/8 bpm, 1400 psi to 3 bpm, 1340 psi,FCP 1470 psi.;382 bbls pumped bump plug,380 bbls calculated,pumped 2 bbls over calculated,Press 500 psi over FCP to 2070 psi,held for 5 min,pressure up to 3500 psi and test 7 5/8"csg f/30 min,charted.;Note:CIP @ 01:14 hrs.Good casing test,bleed off pressure,6 bbls bled back,floats held.R/D cement head and lines 100%returns,no losses pumping and displacing cement.;Details:40 bbls 13.5 ppg tuned spacer,56 bbls 14.5 ppg class G cement consisting of 225 SKS,36.5 bbls mix water, 1.4 yield,6.83 G/S,;Backout landing jt,M/U packoff running tool,set casing hanger packoff.RILDS,inject plastic,test hanger void to 250/4000 psi 10 min.per wellhead rep.L/D landing jt and running tool.;Simops:flush MP 2 w/water,L/D casing tools.;C/O Lower 7 5/8"casing ram to 2 7/8"x 5"VBR rams. LRS on location,R/U,test lines,Pump 1.3 bpm,980 psi,bullhead 72 bbls diesel down 10 3/4"x 7 5/8"annulus.;Load 4"DP in pipeshed,empty pits.;Hauled 640 bbls to MP G&I for total=11443 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 0 bbls from Vern Lake for total=2015 bbls;Hauled 350 bbls from L-Pad Lake for total=7334 bbls Daily losses 0 bbls,total=260 bbls 4/11/2016 Finish installing 2 7/8"x 5"VBR rams in lower BOP.LRS finished freeze protecting 10 3/4"x 7 5/8 ann w/72 bbls diesel to 1820' Continue to Load 4"DP into pipe shed and clean pits.;PJSM,R/U test equip.Test upper and lower 2 7/8"x 5"VBR rams with 4 1/2"test jt,test upper VBR ram with 4"test jt,test FOSV,Dart valve to 250 psi low and 4000 psi high 5 min ea.;Test annular with both 4"and 4 1/2"test jts to 250 psi low and 2500 psi high 5 min ea,chart record all tests,no failures.R/D test equipment.;lnstall HT38 saver sub,4"grabber block and bell guide in torque tube.Install 10"ID wear bushing, RI4LDS.;PJSM,P/U cleanout BHA 4,M/U 6 3/4"Tricone bit,5 3/8"casing scraper,bit sub w/float,9-4 3/4"spiral drill collars= 283.34';Drift and single in the hole with 4"HT38 DP from 238 to 8263',P/U 205K,S/O 130K,wash last jt tagging FC on depth @ 8274'. Note:255 jts ran.;Pump 35 bbl water spacer,displace well to 9.8 ppg KW brine 7 bpm w/3%KCL,840 psi.UD single jt DP.BDTD.;PJSM,M/U FOSV,cut and slip 57'drlg line,L/D FOSV,re-set and test crown saver.;POH with cleanout BHA L/D 4"drill pipe from 8263'to 4250' Note:Load and tally 4 1/2"kill string. Offline:prep camp for 09:00 scheduled move to J-pad;Hauled 943 bbls to MP G&I for total=12386 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 0 bbls to B-50 for total=580 bbls Hauled 580 bbls from Vern Lake for total=2595 bbls;Hauled 98 bbls from L-Pad Lake for total=7432 bbls Daily losses 0 bbls,total=260 bbls 4/12/2016 Continue to single out of hole with 4"DP from 4250'to 283'@ BHA. Correct hole fill on trip out.;L/D 9-4 3/4"drill collars,bit sub,casing scraper and bit.;Pull 10"ID wear bushing,R/D 4"handling equipment and load out same.;R/U 4 1/2"handling equipment,power tongs,ready XO on FOSV.;PJSM,Drift,P/U and RIH with 4 1/2"L-80,12.6#IBT kill string to 2191,M/U to 3200 ft/lbs. (52 jts ran) P/U 25K,S/O 25K,block wt not included.;M/U 4 1/2"X 7 5/8"tbg hanger,2'pup jt, X/O,M/U 4"landing jt w/XO,land hanger 30.45'in with tbg tail @ 2224.65', RILDS per wellhead rep. Top and bttm hanger threads 4 1/2"EUE 8rd.;lnstall BPV,Clear rig floor,Load out tbg handling tools. Monitor I/A.;PJSM,N/D 13 5/8"BOPE,R/D and move Baroid,hot shack and MWD shacks.;N/U 4"x 11"5M adaptor flange and 4"5M Dry hole tree.;Test hanger void to 250/5000 PSI 5 min ea.per wellhead hand. Pull BPV,install TWC,Test tree to 250/5000 psi 5 min ea.charted.Pull TWC,shut in tree.;R/U lines to freeze protect well with LRS,Test lines,pump 90 bbls diesel down annulus 2 bpm,600 psi with diesel returns out tbg,R/D LRS.Shut and secure tree.;Vac out remaining water in pits.R/D and move rock washer.Cleanup cellar,disconnect and blow down steam to rig floor,skid rig floor into position,RDMO K-44.;Rig released from K-44 @ 0600 hrs;Hauled 116 bbls to MP G&I for total=12502 bbls Hauled 0 bbls to GPB G&I for total=75 bbls Hauled 386 bbls to B-50 for total=966 bbls Hauled 0 bbls from Vern Lake for total=7585 bbls;Hauled 153 bbls from L-Pad Lake for total=7432 bbls Daily losses 0 bbls,total=260 bbls • • Hilcorp Energy Company Composite Report Well Name: MP K-44 Field: Milne Point County/State: ,Alaska (LAT/LONG): evation(RKB): API#: Spud Date: Job Name: 1610551C MP K-44 COMPLETION Contractor /�, AFE#: 1610551C C AFE$: $1,136,300 Activity Date Ops Summary 5/3/2016 (JSA)Move Rig on to MPK-44,Set Mud Boat,Roads and Pads Hoisted and Set Well House Enclosure,Set Rig floor on Well Enclosure,,Spotted Pits into Place, Recieved 50 Bbls Fresh Water.,(JSA)Install wing Vales on Mud Cross and Torque up, Spot and Rig up Catwalk and Well site Trailer,Spot and Raise Derrick, Nipple up Spacer Spools on Annular,Held Safety&Sundry Meeting for MPK-44 with Rig Crew,(JSA)Electrician Hooked up and Function Tested Alarms System Combustible Gas&Methane Detector Alarms)in ASR-1 Cellar&Drill Floor,mud Pit Trailer,Generator Room,Mud Pump Room,Choke Room,Tested H2S Detector @(20 ppm)Alarms in Mud Trailer,Mud Pump Room,ASR-1 Cellar,(JSA)Well Rep Tee Bar and Pulled BPV and Installed TWC Valve in Hanger„(JSA) Rig up 4.5 Handling Equipment and Power Tongs on Rig Floor,Make up Cross over in Test Joints,(JSA)Testing Bop,Test all valves&Rams to 250 psi low/3,000 psi.high,Test Annular @ 250 psi low/2,000 psi high.(Johnnie Hill with AOGCC Waived Bop Test 5-3-16©1821 Hrs.)Rig Down Test Equipment,(JSA)Well Head Rep Tee Bar and Pulled TWC Valve From Hanger,(JSA) Rigged up Circulate Freeze Protection out of the Well at 2,250 ft Pumped 140 bbl.Rate 4.2 BPM @ 160 PSI 5/4/2016 (JSA)Rig Service Check Fluid Levels,(JSA)Make up Landing Joint,BOLDS,Check IA=0 Pull Hanger to the Rig Floor&24k Break out lay Down Landing Joint and Hanger,(JSA)Lay Down 4.5 IBT Tubing 2,250 ft.(52 JTS),(JSA)Load and Tally 3.5 CS Hydrill Tubing on Racks,Change out 4-1/2 to 3-1/2 Handling Equipment,(JSA)Pick and Make up 7-5/8 Casing Scraper&Bit TIH with 226 jts.3.5 Tubing to 6735'.,Continue to PU 3 1/2"CS Hydril tubing f/6735'to 8219' (276 total jts).,Break circulation and displace well f/8219'to surface with 10.1 ppg brine.Begin with 2 bpm,260 psi.Slow rate to 1 bpm, 160 psi while waiting on second truck containing 10.1 ppg brine.,Wait on second Vac truck with remaining 10.1 brine to arrive location(bad road conditions&rig move slowing delivery time).,Offload 205 bbls of 10.1 brine.Continue displacing well.,POOH LD 3 1/2"CS Hydril tubing f/8219'to 4590'(122 jts out)@ 05:00. 5/5/2016 (JSA)(JSA)Rig Service Check Fluid Levels,(JSA)Continue Pooh lay down 3.5 CS Hydrill Tubing on Racks,(JSA)Break and lay down BHA Assembly,(JSA) Nipple up 11"Shooting Flange,Received and Unload 250 Joints 2-7/8 EUE Tubing on Location,(JSA)Remove Stairs,Breakover&Lower Derrick on to Carrier,(JSA)Rig up Halliburton E-LineTruck and Alaska Crane,(JSA) Pick and Make up Lubricator,Make up Cast M &CBL Logging Tools,Install Lubricator onto Shooting Flange,Fill with Diesel Test 250 Low/1,000 High,RIH w/Cast M&CBL w/4 3/4"Scanner Head,Continue to RIH w/Cast M&CBI,.Perform free pipe and downhole calibration of Cast M&CBL tool.,Record Free pipe pass.Log pass with 0 psi f/8250-5500'.Confirm TOC at 6010'.RIH to 8255'.Apply 500 psi to wellbore.Log up f/8255'to 5500'.No change observed.,POH.LD logging tools.,(JSA)PU perf gun assembly.,RIH w/10'of guns(10 spf)to 8250'.Log up for correlation.RIH to 8250'.Log up and spot top shot at 8144'.Fire guns(slight bobble observed on weight indicator).Perf interval-8144'-8154'.,POH w/perf gun assembly.RD&inspect guns(all fired).,RD lubricator&WL equipment. 5/6/2016 (JSA)Rig Service Check Fluid Levels,(JSA)Raise Derrick,Install Stairs to Rig Floor,R/D and Remove 11"X 7"Shooting Flange,Load and Tally 275 Joints of 3.5 CS Hydrill Tubing on pipe Racks,Received and off Load 4 GLMS For Completion,(JSA)Conduct PIR Well Bore is Full,Closed Blind Rams Start Pumping @ 20 BPM with Total of 23 bbls Pumped Reached 500 psi Shut Pump Down Hold for Five Minutes,Holding at 550 psi,Start Pumping at 2BPM with a Increase Pressure of 600 Psi with aTotal Stks Pumped 30),(Started Pumping with 33 Total Stks Pumped Pressure Increase to 700 psi Holding Steady at 700 psi)(Started Pumping with 35 Total Stks.800 psi Holding),(JSA)Made up Mule Shoe Trip in Hole with 3.5 CS Hydrill Tubing Total of (274Jts) @ 8,155 ft.,RU Halliburton Cementers.Hold JSA with crew and cementers.,RIH PU 3 1/2"CS Hydril f/8155'to 8262'.Tag up at 8262'(7 5/8"PBTD).,LD 1 jt.spotting Muleshoe at 8244'. Prepare to pump cement.,Line up Halliburton.Pump 10 bbls fresh water.Shut in and test lines to 3000 psi.Bleed off&Pump 10 bbls fresh water.Pump 10 bbls of 15.8 ppg Class G Cement.Pump 5 bbls fresh water.Halliburton displace with 61.5 bbls of 10.1 ppg brine.Estimated TOC @ 8042'(100'above top perf).,POH LD 15 jts of 3 1/2"tubing f/8244'to 7796'.,Reverse circulate to clean up pipe.No cement observed w/bottoms up.Close in well and pressure up to 500 psi f/3 minutes.No pressure loss observed.Pressure up to 800 psi.No loss observed.Bleed off.,POH LD 3 1/2"tubing f/7796'to±3850'. 5/7/2016 (JSA)Rig Service Check Fluid Levels,(JSA)POOH L/D 3 1/2"Tubing f/3,850',(JSA)Pick and Make up BHA Assembly,(JSA)TIH with 3.5 CS Hydrill Tubing& BHA Assembly,Continue to RIH w/3 1/2"CS Hydril&BHA to 8022'.Tag hard spot at 8022'. PUW 75k-SOW 39k.,RU swivel and rotating rubber.,Break circulation w/2 bpm,200 psi.Increase rate to 3 bpm,480 psi.Drilling cement stringers f/8022'to 8045'w/60 rpm,2500 ft/lbs tq.Hit hard cement at 8045'.Drilling cement f/8045'to 8140'.Circulate after each jt to clean up&prevent flow back in DP.,Circulate hole clean w/4 bpm,800 psi.60 rpm. 5/8/2016 (JSA)Rig Service Check Fluid Levels,(JSA)Circulate hole clean While Rotating&Working Tubing @ 4 bpm,800 psi.60 rpm.,(JSA)Nipple Down&Remove Rotating Head,Monitor Well For Flow(No Flow),(JSA)Pooh and Lay Down 274 jts of 3.5 Tubing,(JSA)Break down Lay Down BHA Assembly.,RU Halliburton E- Line.Hold PJSM.RIH w/6.55"GR/JB.Tag bottom at 8154'(WLM).POH.LD tools.PU CIBP&RIH.Set down at 8154'(WLM).PU and correlate depths.Set plug at 8140'(bottom of element).Good indication of firing.Lost 665 lbs of line wt.PU&wait 5 min.Set back down to verify.POH.LD tools&RD E-Line.NOTE: while RD E-Line,test plug/casing to 2000 psi f/5 min.Good test.,RU&PU 52 jts of 4 1/2"IBT tubing including muleshoe jt.PU hanger w/XO's and land tubing at 2212'.,RU to test BOPE. 5/9/2016 (JSA)Rig Service Check Fluid Levels,( I Testing Bop,Test all valves&Rams to 250 psi low/3,001 i.high,Test Annular @ 250 psi low/2,000 psi high. Brian Bixby with AOGCC Witness Bop Test 5-9-16 @ 0700Hrs.) Electrician Bump Tested Alarms(Tested Good),(JSA) Open IA Psi=0 Tee bar Pulled TWC Valve from Tbg Hanger,(JSA) Nipple up 11 x 7'Shooting Flange,Remove Pipe Racks,Break Derrick over Lower down onto Carrier„(JSA)Little Red Services, Displace Well with 86 bbl Diesel F/2,215 ft.to Surface,(JSA)R/U Halliburton E-Line&Alaska Crane Services, Hoisted&Installed Lubricator onto Shooting Flange Fill with Diesel Test to 1,000/3,000 psi,Continue testing lubricator.Prep for Perf run#1.PJSM w/crew.Check fire,arm guns.PU guns.Stab Lub.onto wellhead.Test"quick test sub".,RIH w/Gun run#1 CH/GPLT&20'of 3 3/8"guns w/6 spf.Tag top of CIBP.Correlate depths w/SLB SCMT log dated 4/16/16. Email logs to Geo.Matt Brown&Engineer Stan Porhola for confirmation.Instucted to move shots down 1'based on previous open hole logs.Spot guns and fire same f/8108'-8128'per instructions.No pressure observed after firing.POH.LD guns(all shots fired).,Check fire.Arm guns&PU same for run#2.Test"quick test sub".RIH w/guns.Configuration same as Run#1.Tag top of CIBP at 8138'.Correlate based on SLB logs f/4/16/16.Email logs to Stan Porhola for confirmation.Spot guns and perforate f/8088'to 8108'per instructions.No pressure observed after firing.POH.LD guns(all shots fired).,Re-head rope socket. Check fire.Arm guns&PU same for run#3.Test"quick test sub".,RIH w/gun run#3.Same configuration except 17'of guns(6 spf).Correlate depth.Email logs to Stan Porhola for confirmation.Spot guns and perforate f/8071'to 8088'per instructions.No pressure observed after firing.POH.LD guns(all shots fired),RD_ lubricator and E-Line equipment. SIMOPS:Displace diesel f/±2200'using 10.1 ppg brine. 5/10/2016 (JSA)Rig Service Check Fluid Levels,(JSA)Raise Derrick,Nipple Down 11 x 7'Shooting Flange Hoist Down f/Rig Floor,Rig up Pipe Racks,Spotted Spooling Unit into Place,(JSA)M/U Landing Joint&Safety Valve RIH Make up into Tubing Hanger BOLDS Pull Hanger to rig floor @ 20k Break out and Lay down,(JSA) Pooh Lay down 4.5 Tubing (Totol 52 Joints),(JSA)Hang ESP Shieve in Derrick, Change Over Handling Equipment F/4.5 to 2-7/8 Equipment,Load GLM'S ESP Pump Assembly on catwalk„(JSA) Load and Tally 230 Joints 2-7/8 Tubing on Pipe Racks,While Summitt Reps are Makeing up ESP Pump Assembly,RIH with ESP Completion Assembly to 4,600 Ft..PU Tripoint Retrievable H.S.Dual ESP packer between joints 137&138.@ 4,600 ft.Make penetrations through packer.,Change out ESP cable spools.Make Cable Spice at Packer, 5/11/2016 (JSA)Rig Service Check Fluid Levels,(JSA) First Cable Splice was Cut to Long To much Slack in Cable,RE-Cut Cable make new Cable Splice„Function Test Vent Valve on Packer, Unable to Open Valve at 2,500 psi.Bring Pressure up to 4,000 Psi. Unable to Function Valve,Valve should Started to open @ 1,300 psi and Fully opened at 2,500 psi Worked Pressure up to 4,000 psi then Bleed off,Continue working Pressure up&Down,Tri-Point PKR Rep Remove Valve from Q. Pkr,Hand Pump was Rigged up Direct 4,000 psi to open Valve.,Hilcorp Engineer was Notified Paul Chan/Stan Porhola,Weatherford(Kevin Walker Operation Manager)was Called he has Located Vent Valve in Kenai.Waiting on Arrival of Vent Valve.,Continue waiting on Vent valve to arrive via Charter flight from An horage.Valve arrived on location at 0030 hrs.,Tripoint Rep tested valve before installing.Began opening at 2200 psi.Fully open at 2500 psi using hydrulic vd pump hooked directly to valve.PU valve to rig floor and install.Hook up 1/4”control line.Attempt to function valve.No pressure observed at rig floor.4000 psi at pump.Appears to be a restriction in the 1/4”control line.,Place gauge on both ends of control line.Pressure up to 6000 psi.No pressure on other end. • y Eventually started seeing some pressure.3800 psi on pump end,500 psi on rig floor.Contact Halliburton to have a spooling unit purged&tested ready to go.,Disconnect line.Move spooling unit.Contact Centrilift.Have empty spool brought over.Attempt to spool 4000'ft(1/2 of line on Summit's unit)onto Cetralift v: unit.Centrilift unit would not turn.,Contact Halliburton in Deadhorse.Spooling unit with 3000'of 1/4"control line purged and tested in route to Milne Point. 5/12/2016 (JSA)Rig Service Check Fluid Levels,Contact Halliburton in Deadhorse.Spooling unit with 3000'of 1/4"control line purged and tested in route to Milne Point. (Arrival Time on Location @ 0815 hrs.),(JSA)Rig up Halliburton 1/4 Control Line Spooler,Test Vent Valve 3,000 Psi to open Valve,Ran Control Line over Sheive Installed Vent Valve into Packer Connect 1/4 Line Test Vent Valve opened at 3,000 psi,(JSA)TIH with ESP Completion Assembly& DL ESP Duel Packer, Halliburton Keeping 1,000 psi on 1/4 Control Line,(JSA)Pick up Landing Joint Screw into Hanger and Make up,Well Head Rep Align ESP Penetrator up with Flow Line,Cut and Installed 1/4&3/8 Control Line Through Hanger,(JSA)Summit Esp Rep Make ESP Cable Splice up into Penetrator,(JSA)Land Hanger RILDS,P/U/W=64K S/O/W=37K (Ran 220 Total Jts)(Body Clamps=11)(Cross Collar=118)(Half Clamps=42)Back out and Lay Down landing Joint,Make up 2- 10 Pup Joints Rih Make up in Tubing Hanger,Install Safety Valve,Rig up Little Reds Services.Hook up to IA.Test lines.Attempt to bullhead down backside. 1/2 bpm,1200 psi.Pressure too high according to parameters set by TriPoint Rep.Pump 90 bbls down IA taking returns out tubing to pits. 1/2-3/4 bpm, 1300-1700 psi.,Place jumper hose from IA to tubing.Allow diesel to"U-Tube”placing freeze protect at 2000'on IA and tubing.,Remove jumper hose.Drop ball&rod.Wait 10 min.Pressure up on tubing to 3800 psi to set Tripoint Packer.Hold pressure for 1 hr test.Bleed pressure.Line up to pump down IA.Pressure up down IA to 1500 psi.Hold for 30 min. Bleed pressure.RD Little Red.,Well Head Rep.Tee Bar and install BPV in Well Head,R/D ASR RIG 1' 5/13/2016 (JSA)Rig Service Check Fluid Levels,(JSA)Roads and Pads Hoist and Remove Rig Floor and Well House,(JSA)Nipple down Bope Stack&Nipple up Tree„(JSA)Well Head Rep Pulled BPV &Installed TWC Valve in Hanger,(JSA)Hauled Change House CO,Man Shack,Pits Rig Floor Well House,All Drilling Equipment From MPK-44 to A-Pad Stage Equipment,Clear and Clean MPK-44 Location,Turned MPK-44 over to Production,Cleaning pits and cuttings tank with Super Sucker.Performing various rig maintenance tasks. • ', :- , Hilcorp Energy Company w Milne Point M Pt K Pad Y MPK-44 50-029-23567-00-00 50-029-23567-00-00 • Sperry Drilling Definitive Survey Report 13 April, 2016 MEIPMENINIZEIMMOISIIIIIIMMI ...--a, HALLIBURTON `W* Sperry Drilling • Halliburton IP Definitive Survey Report Company: Hilcorp Energy Company Local Coordinate Reference: Well MPK-44 Project: Milne Point TVD Reference: MPK-44 Actual 3.29.16 @ 63.26usft(Doyon 14) Site: M Pt K Pad MD Reference: MPK-44 Actual 3.29.16 @ 63.26usft(Doyon 14) Well: MPK-44 North Reference: True Wellbore: MPK-44 Survey Calculation Method: Minimum Curvature Design: MPK-44 Database: Sperry EDM-NORTH US+CANADA Project Milne Point,ACT,MILNE POINT 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 MPK-44 Well Position +NI-S 0.00 usft Northing: 6,005,880.17 usft Latitude: 70°25'33.570 N +E/-W 0.00 usft Easting: 584,535.02 usft Longitude: 149°18'40.034 W Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: 29.30 usft Wellbore MPK-44 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (0) (0) (nT) BGGM2015 4/13/2016 18.74 81.06 57,507 Design MPK-44 Audit Notes: Version: 1.0 Phase: ACTUAL Tie On Depth: 33.96 Vertical Section: Depth From(TVD) +NI-S +EI-W Direction (usft) (usft) (usft) (0) 33.96 0.00 0.00 74.85 Survey Program Date 4/11/2016 From To (usft) (usft) Survey(Wellbore) Tool Name Description Survey Date 134.96 505.92 MPK-44 Interp(MPK-44) MWD_Interp Azi+sag Fixed:v2:std dec with interpolated azimuth+sag 03/28/2016 601.30 5,557.66 MWD+IFR2+MS+sag(1)(MPK-44) MWD+IFR2+MS+sag Fixed:v2:IIFR dec&3-axis correction+sag 03/29/2016 5,633.77 8,331.42 MWD+IFR2+MS+sag(2)(MPK-44) MWD+IFR2+MS+sag Fixed:v2:IIFR dec&3-axis correction+sag 04/06/2016 Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +E/-W Northing Easting DLS Section (usft) (0) (0) (usft) (usft) (usft) (usft) (ft) (ft) (0l100') (ft) Survey Tool Name 33.96 0.00 0.00 33.96 -29.30 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 UNDEFINED 134.96 0.33 35.07 134.96 71.70 0.24 0.17 6,005,880.41 584,535.18 0.33 0.22 MWD_InterpAzi+sag(1) 225.21 0.14 35.07 225.21 161.95 0.54 0.38 6,005,880.72 584,535.39 0.21 0.51 MWD_InterpAzi+sag(1) 321.95 0.14 35.07 321.95 258.69 0.73 0.52 6,005,880.91 584,535.53 0.00 0.69 MWD_InterpAzi+sag(1) 410.36 0.09 35.07 410.36 347.10 0.88 0.62 6,005,881.06 584,535.63 0.06 0.83 MWD_InterpAzi+sag(1) 505.92 0.40 35.07 505.92 442.66 1.21 0.85 6,005,881.39 584,535.86 0.32 1.14 MWD_InterpAzi+sag(1) 601.30 0.41 35.07 601.29 538.03 1.77 1.24 6,005,881.95 584,536.24 0.01 1.66 MWD+IFR2+MS+sag(2) 695.27 0.33 59.69 695.26 632.00 2.18 1.67 6,005,882.37 584,536.66 0.19 2.18 MWD+IFR2+MS+sag(2) 789.37 3.51 62.00 789.30 726.04 3.67 4.44 6,005,883.89 584,539.42 3.38 5.25 MWD+IFR2+MS+sag(2) 880.95 3.72 59.90 880.70 817.44 6.47 9.49 6,005,886.75 584,544.44 0.27 10.85 MWD+IFR2+MS+sag(2) 978.20 6.44 60.18 977.55 914.29 10.77 16.95 6,005,891.13 584,551.85 2.80 19.18 MWD+IFR2+MS+sag(2) 1,072.31 7.19 59.23 1,071.00 1,007.74 16.41 26.59 6,005,896.87 584,561.42 0.81 29.95 MWD+IFR2+MS+sag(2) 4/13/2016 1:56:45PM Page 2 COMPASS 5000.1 Build 73 0 Halliburton • Definitive Survey Report Company: Hilcorp Energy Company Local Co-ordinate Reference: Well MPK-44 Project: Milne Point TVD Reference: MPK-44 Actual 3.29.16 @ 63.26usft(Doyon 14) Site: M Pt K Pad MD Reference: MPK-44 Actual 3.29.16 @ 63.26usft(Doyon 14) Well: MPK-44 North Reference: True Wellbore: MPK-44 Survey Calculation Method: Minimum Curvature Design: MPK-44 Database: Sperry EDM-NORTH US+CANADA Survey 1 Map Map Vertical MD Inc Azi TVD TVDSS +NI-S +E/-W Northing Easting DLS Section (usft) (°) (°) (usft) (usft) (usft) (usft) (ft) (ft) (11100') (ft) Survey Tool Name 1,166.56 9.92 54.29 1,164.19 1,100.93 24.16 38.25 6,005,904.76 584,572.99 3.00 43.24 MWD+IFR2+MS+sag(2) 1,260.97 13.85 51.79 1,256.56 1,193.30 35.90 53.74 6,005,916.68 584,588.35 4.20 61.26 MWD+IFR2+MS+sag(2) 1,353.85 14.07 47.45 1,346.70 1,283.44 50.42 70.80 6,005,931.38 584,605.23 1.15 81.51 MWD+IFR2+MS+sag(2) 1,448.70 17.25 57.75 1,438.04 1,374.78 65.72 91.19 6,005,946.92 584,625.45 4.44 105.20 MWD+IFR2+MS+sag(2) 1,543.91 19.82 56.51 1,528.30 1,465.04 82.17 116.60 6,005,963.64 584,650.67 2.73 134.01 MWD+IFR2+MS+sag(2) 1,638.03 21.66 54.34 1,616.32 1,553.06 101.10 144.02 6,005,982.88 584,677.87 2.12 165.43 MWD+IFR2+MS+sag(2) 1,731.94 23.28 53.85 1,703.10 1,639.84 122.15 173.09 6,006,004.26 584,706.70 1.74 198.99 MWD+IFR2+MS+sag(2) 1,825.99 23.16 54.11 1,789.53 1,726.27 143.96 203.08 6,006,026.40 584,736.44 0.17 233.64 MWD+IFR2+MS+sag(2) 1,921.01 27.58 60.21 1,875.38 1,812.12 165.85 237.33 6,006,048.69 584,770.43 5.40 272.42 MWD+IFR2+MS+sag(2) 2,014.24 28.52 67.63 1,957.68 1,894.42 185.05 276.65 6,006,068.33 584,809.54 3.87 315.40 MWD+IFR2+MS+sag(2) 2,108.54 30.13 74.89 2,039.92 1,976.66 199.80 320.34 6,006,083.56 584,853.05 4.14 361.41 MWD+IFR2+MS+sag(2) 2,202.99 32.67 75.78 2,120.53 2,057.27 212.24 367.94 6,006,096.54 584,900.50 2.73 410.62 MWD+IFR2+MS+sag(2) 2,297.64 34.98 74.94 2,199.16 2,135.90 225.57 418.91 6,006,110.45 584,951.31 2.49 463.30 MWD+IFR2+MS+sag(2) 2,391.83 35.13 75.78 2,276.26 2,213.00 239.24 471.26 6,006,124.71 585,003.49 0.54 517.39 MWD+IFR2+MS+sag(2) 2,486.43 35.02 75.73 2,353.68 2,290.42 252.62 523.95 6,006,138.68 585,056.02 0.12 571.75 MWD+IFR2+MS+sag(2) 2,580.82 33.40 75.95 2,431.74 2,368.48 265.60 575.40 6,006,152.25 585,107.32 1.72 624.81 MWD+IFR2+MS+sag(2) 2,675.03 33.35 76.18 2,510.41 2,447.15 278.08 625.70 6,006,165.29 585,157.47 0.14 676.62 MWD+IFR2+MS+sag(2) 2,769.51 33.30 76.40 2,589.36 2,526.10 290.38 676.13 6,006,178.17 585,207.75 0.14 728.51 MWD+IFR2+MS+sag(2) 2,864.25 33.14 76.15 2,668.61 2,605.35 302.70 726.55 6,006,191.05 585,258.03 0.22 780.40 MWD+IFR2+MS+sag(2) 2,959.94 33.13 76.31 2,748.74 2,685.48 315.15 777.35 6,006,204.07 585,308.68 0.09 832.69 MWD+IFR2+MS+sag(2) 3,052.23 32.98 76.91 2,826.10 2,762.84 326.80 826.32 6,006,216.28 585,357.51 0.39 883.00 MWD+IFR2+MS+sag(2) 3,147.24 32.89 76.51 2,905.84 2,842.58 338.68 876.59 6,006,228.73 585,407.64 0.25 934.63 MWD+IFR2+MS+sag(2) 3,241.74 32.30 76.66 2,985.45 2,922.19 350.49 926.11 6,006,241.10 585,457.02 0.63 985.52 MWD+IFR2+MS+sag(2) 3,336.33 31.84 76.87 3,065.61 3,002.35 361.99 975.00 6,006,253.15 585,505.77 0.50 1,035.71 MWD+IFR2+MS+sag(2) 3,430.57 32.11 75.94 3,145.55 3,082.29 373.72 1,023.50 6,006,265.43 585,554.13 0.60 1,085.60 MWD+IFR2+MS+sag(2) 3,524.74 34.16 75.56 3,224.40 3,161.14 386.40 1,073.39 6,006,278.66 585,603.87 2.19 1,137.06 MWD+IFR2+MS+sag(2) 3,619.70 34.31 76.28 3,302.91 3,239.65 399.39 1,125.21 6,006,292.24 585,655.53 0.45 1,190.48 MWD+IFR2+MS+sag(2) 3,713.53 34.14 76.62 3,380.49 3,317.23 411.76 1,176.51 6,006,305.19 585,706.69 0.27 1,243.23 MWD+IFR2+MS+sag(2) 3,804.55 33.88 77.33 3,455.94 3,392.68 423.23 1,226.11 6,006,317.22 585,756.15 0.52 1,294.10 MWD+IFR2+MS+sag(2) 3,902.08 33.84 77.42 3,536.93 3,473.67 435.11 1,279.14 6,006,329.70 585,809.03 0.07 1,348.39 MWD+IFR2+MS+sag(2) 3,995.90 34.21 76.67 3,614.69 3,551.43 446.88 1,330.30 6,006,342.05 585,860.05 0.60 1,400.85 MWD+IFR2+MS+sag(2) 4,090.18 34.36 77.19 3,692.59 3,629.33 458.89 1,382.03 6,006,354.64 585,911.64 0.35 1,453.92 MWD+IFR2+MS+sag(2) 4,184.86 32.99 75.74 3,771.38 3,708.12 471.16 1,433.07 6,006,367.49 585,962.53 1.68 1,506.40 MWD+IFR2+MS+sag(2) 4,274.04 32.62 75.98 3,846.34 3,783.08 482.97 1,479.92 6,006,379.82 586,009.24 0.44 1,554.70 MWD+IFR2+MS+sag(2) 4,374.92 31.79 76.90 3,931.70 3,868.44 495.58 1,532.19 6,006,393.02 586,061.35 0.96 1,608.45 MWD+IFR2+MS+sag(2) 4,468.50 32.57 76.47 4,010.90 3,947.64 507.06 1,580.68 6,006,405.05 586,109.71 0.87 1,658.26 MWD+IFR2+MS+sag(2) 4,563.31 33.60 75.78 4,090.34 4,027.08 519.47 1,630.93 6,006,418.03 586,159.81 1.16 1,710.00 MWD+IFR2+MS+sag(2) 4,657.87 33.10 76.12 4,169.32 4,106.06 532.09 1,681.36 6,006,431.22 586,210.09 0.56 1,761.97 MWD+IFR2+MS+sag(2) 4,752.40 33.54 76.51 4,248.32 4,185.06 544.38 1,731.81 6,006,444.08 586,260.39 0.52 1,813.88 MWD+IFR2+MS+sag(2) 4,846.39 34.23 76.88 4,326.34 4,263.08 556.43 1,782.80 6,006,456.71 586,311.24 0.77 1,866.26 MWD+IFR2+MS+sag(2) 4/13/2016 1:56:45PM Page 3 COMPASS 5000.1 Build 73 Halliburton Definitive Survey Report Company: Hilcorp Energy Company Local Co-ordinate Reference: Well MPK-44 Project: Milne Point TVD Reference: MPK-44 Actual 3.29.16 @ 63.26usft(Doyon 14) Site: M Pt K Pad MD Reference: MPK-44 Actual 3.29.16 @ 63.26usft(Doyon 14) Well: MPK-44 North Reference: True Wellbore: MPK-44 Survey Calculation Method: Minimum Curvature Design: MPK-44 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) 0100') (ft) Survey Tool Name 4,940.89 34.35 77.85 4,404.42 4,341.16 568.08 1,834.75 6,006,468.94 586,363.05 0.59 1,919.45 MWD+IFR2+MS+sag(2) 5,035.01 33.76 76.44 4,482.40 4,419.14 579.80 1,886.13 6,006,481.24 586,414.29 1.05 1,972.11 MWD+IFR2+MS+sag(2) 5,128.65 34.34 76.97 4,559.98 4,496.72 591.85 1,937.16 6,006,493.87 586,465.17 0.70 2,024.51 MWD+IFR2+MS+sag(2) 5,219.79 32.72 76.12 4,635.95 4,572.69 603.56 1,986.12 6,006,506.13 586,513.99 1.85 2,074.83 MWD+IFR2+MS+sag(2) 5,317.54 32.24 76.10 4,718.41 4,655.15 616.16 2,037.08 6,006,519.31 586,564.80 0.49 2,127.31 MWD+IFR2+MS+sag(2) 5,412.39 33.16 75.79 4,798.23 4,734.97 628.61 2,086.78 6,006,532.32 586,614.36 0.99 2,178.54 MWD+IFR2+MS+sag(2) 5,507.07 33.09 75.51 4,877.52 4,814.26 641.43 2,136.91 6,006,545.71 586,664.33 0.18 2,230.27 MWD+IFR2+MS+sag(2) 5,557.66 33.18 75.62 4,919.89 4,856.63 648.32 2,163.69 6,006,552.90 586,691.03 0.21 2,257.92 MWD+IFR2+MS+sag(2) 5,633.77 32.78 75.16 4,983.73 4,920.47 658.77 2,203.78 6,006,563.80 586,730.99 0.62 2,299.35 MWD+IFR2+MS+sag(3) 5,730.12 32.24 75.02 5,064.98 5,001.72 672.10 2,253.82 6,006,577.69 586,780.88 0.57 2,351.13 MWD+IFR2+MS+sag(3) 5,824.95 33.24 77.79 5,144.75 5,081.49 684.13 2,303.66 6,006,590.29 586,830.57 1.90 2,402.39 MWD+IFR2+MS+sag(3) 5,918.77 33.02 77.71 5,223.32 5,160.06 695.01 2,353.77 6,006,601.74 586,880.55 0.24 2,453.60 MWD+IFR2+MS+sag(3) 6,013.79 33.89 78.58 5,302.60 5,239.34 705.77 2,405.03 6,006,613.07 586,931.69 1.05 2,505.89 MWD+IFR2+MS+sag(3) 6,108.05 33.58 78.89 5,380.98 5,317.72 715.99 2,456.37 6,006,623.88 586,982.90 0.38 2,558.12 MWD+IFR2+MS+sag(3) 6,201.93 33.33 78.51 5,459.31 5,396.05 726.13 2,507.12 6,006,634.59 587,033.53 0.35 2,609.76 MWD+IFR2+MS+sag(3) 6,296.78 33.23 78.48 5,538.60 5,475.34 736.52 2,558.13 6,006,645.55 587,084.40 0.11 2,661.70 MWD+IFR2+MS+sag(3) 6,390.75 33.14 78.18 5,617.25 5,553.99 746.92 2,608.50 6,006,656.52 587,134.65 0.20 2,713.04 MWD+IFR2+MS+sag(3) 6,484.51 32.94 77.72 5,695.85 5,632.59 757.59 2,658.49 6,006,667.76 587,184.51 0.34 2,764.09 MWD+IFR2+MS+sag(3) 6,579.63 33.93 78.49 5,775.22 5,711.96 768.39 2,709.77 6,006,679.13 587,235.67 1.13 2,816.41 MWD+IFR2+MS+sag(3) 6,672.55 33.84 78.50 5,852.36 5,789.10 778.72 2,760.54 6,006,690.04 587,286.31 0.10 2,868.11 MWD+IFR2+MS+sag(3) 6,767.71 33.74 77.11 5,931.45 5,868.19 789.90 2,812.26 6,006,701.80 587,337.90 0.82 2,920.96 MWD+IFR2+MS+sag(3) 6,862.52 32.89 78.43 6,010.68 5,947.42 800.94 2,863.15 6,006,713.41 587,388.65 1.18 2,972.96 MWD+IFR2+MS+sag(3) 6,955.71 33.97 78.53 6,088.45 6,025.19 811.19 2,913.46 6,006,724.23 587,438.83 1.16 3,024.20 MWD+IFR2+MS+sag(3) 7,051.54 33.54 78.64 6,168.13 6,104.87 821.73 2,965.65 6,006,735.36 587,490.90 0.45 3,077.33 MWD+IFR2+MS+sag(3) 7,145.42 33.39 78.16 6,246.44 6,183.18 832.14 3,016.36 6,006,746.34 587,541.48 0.32 3,129.00 MWD+IFR2+MS+sag(3) 7,238.30 33.16 77.80 6,324.09 6,260.83 842.75 3,066.20 6,006,757.52 587,591.20 0.33 3,179.89 MWD+IFR2+MS+sag(3) 7,333.96 33.01 77.25 6,404.25 6,340.99 854.03 3,117.19 6,006,769.37 587,642.05 0.35 3,232.05 MWD+IFR2+MS+sag(3) 7,428.49 32.64 76.94 6,483.68 6,420.42 865.47 3,167.14 6,006,781.38 587,691.86 0.43 3,283.25 MWD+IFR2+MS+sag(3) 7,523.45 27.69 74.95 6,565.76 6,502.50 876.99 3,213.42 6,006,793.43 587,738.00 5.32 3,330.94 MWD+IFR2+MS+sag(3) ' 7,617.46 22.51 73.90 6,650.86 6,587.60 887.66 3,251.83 6,006,804.53 587,776.29 5.53 3,370.80 MWD+IFR2+MS+sag(3) 7,712.41 20.33 78.33 6,739.25 6,675.99 896.04 3,285.45 6,006,813.29 587,809.81 2.86 3,405.44 MWD+IFR2+MS+sag(3) 7,805.82 17.31 78.14 6,827.66 6,764.40 902.18 3,314.95 6,006,819.76 587,839.23 3.23 3,435.52 MWD+IFR2+MS+sag(3) 7,900.44 16.49 78.00 6,918.19 6,854.93 907.87 3,341.86 6,006,825.75 587,866.08 0.87 3,462.98 MWD+IFR2+MS+sag(3) 7,995.05 13.94 77.02 7,009.48 6,946.22 913.22 3,366.10 6,006,831.38 587,890.26 2.71 3,487.78 MWD+IFR2+MS+sag(3) 8,089.42 11.81 74.93 7,101.47 7,038.21 918.28 3,386.51 6,006,836.67 587,910.60 2.31 3,508.80 MWD+IFR2+MS+sag(3) 8,183.43 11.92 75.60 7,193.47 7,130.21 923.20 3,405.20 6,006,841.80 587,929.23 0.19 3,528.13 MWD+IFR2+MS+sag(3) 8,277.93 11.46 77.39 7,286.01 7,222.75 927.68 3,423.82 6,006,846.48 587,947.79 0.62 3,547.27 MWD+IFR2+MS+sag(3) 8,331.42 11.10 77.82 7,338.47 7,275.21 929.92 3,434.04 6,006,848.85 587,957.99 0.69 3,557.72 MWD+IFR2+MS+sag(3) 8,370.00 11.10 77.82 7,376.33 7,313.07 931.49 3,441.30 6,006,850.50 587,965.23 0.00 3,565.14 PROJECTED to TD 4/13/2016 1:56:45PM Page 4 COMPASS 5000.1 Build 73 Halliburton Definitive Survey Report Company: Hilcorp Energy Company Local Co-ordinate Reference: Well MPK-44 Project: Milne Point TVD Reference: MPK-44 Actual 3.29.16 @ 63.26usft(Doyon 14) Site: M Pt K Pad MD Reference: MPK-44 Actual 3.29.16 @ 63.26usft(Doyon 14) Well: MPK-44 North Reference: True Wellbore: MPK-44 Survey Calculation Method: Minimum Curvature Design: MPK-44 Database: Sperry EDM-NORTH US+CANADA brian.wheeler@halliburton gw — cary.taylor@halliburton.co wd.mrw.®^+ n«^ Checked By: .com Approved By: mDate p 1« pm�' Date: 4/13/2016 1:56:45PM Page 5 COMPASS 5000.1 Build 73 Hilcorp Energy Company CASING&CEMENTING REPORT Lease&Well No. MP K-44 Date Run 3-Apr-16 County State Alaska Supv. Sloan Sunderland/Shane Barber CASING RECORD / Surface .4") t/ TD 5,605.00 Shoe Depth: 5,596.84 PBTD: 5,510.80 No.Jts.Delivered 137 No.Jts.Run 137 No.Jts.Returned Casing(Or Liner)Detail Setting Depths Jts. Component Size Wt. Grade THD Make Length Bottom Top Shoe 113/4 P-110 BTC DHP 1.73 5,596.84 5,595.11 1 Joint 10 3/4 45.5 L-80 BTC 41.18 5,595.11 5,553.93 Float Collar 11 3/4 BTC 1.43 5,553.93 5,552.50 2 Joint 10 3/4 45.5 L-80 BTC 40.45 5,552.50 5,512.05 BEL Adaptor 11 3/4 BTC 1.25 5,512.05 5,510.80 96 Joint 103/4 45.5 L-80 BTC 3,891.00 5,510.80 1,619.64 ES Cmt Tool 113/4 BTC 2.87 1,619.64 1,616.77 �/ c.; 39 Joint 10 3/4 45.5 L-80 BTC 1,578.00 1,616.77 37.78 Pup 10 3/4 45.5 L-80 BTC 2.93 37.78 34.85 Hanger BTC Seaboard 0.85 34.85 34.00 RKB 34.00 Csg Wt.On Hook: 95,000 Type Float Collar: Conventional No.Hrs to Run: 18 Csg Wt.On Slips: 40,000 Type of Shoe: Conventional Casing Crew: Weatherford Rotate Csg Yes X No Recip Csg Yes X No 60 Ft.Min. 10.4 PPG Fluid Description: Spud Mud Liner hanger Info(Make/Model): Liner top Packer?: _Yes_No Liner hanger test pressure: Floats Held _Yes_ No Centralizer Placement: CEMENTING REPORT Shoe @ 5596.84 FC @ 5,552.50 Top of Liner #N/A Preflush(Spacer) Type: Mud Push Density(ppg) 10.8 Volume pumped(BBLs) 60 Lead Slurry Type: ArcticCem 680 sx/yield=2.3 ft3/sk Density(ppg) 11.7 Volume pumped(BBLs) 278.5 Mixing/Pumping Rate(bpm): 6 Tail Slurry w Type: SwiftCem 310 sx/yield=1.16 ft3/sk F Density(ppg) 15.8 Volume pumped(BBLs) 63.5 Mixing/Pumping Rate(bpm): 3 w Post Flush(Spacer) r- K Type:H2O Density(ppg) 8.3 Rate(bpm): 6 Volume: 20 LL Displacement: Type: Spud Mud Density(ppg) 10.4 Rate(bpm): 3.5 Volume(actual/calculated): 503/514 FCP(psi): 1200 Pump used for disp: Rig MP#2 Bump Plug? X Yes No Bump press 1700 Casing Rotated? Yes X No Reciprocated? Yes X No %Returns during job 58 Cement returns to surface? X Yes_No Spacer returns? X Yes_No Vol to Surf: 0 Cement In Place At: 5:31 Date: 4/3/2016 Estimated TOC: 1,618 Method Used To Determine TOC: Lift and circ depth on stg tool Stage Collar @ 1618 Type ES Cmntr Closure OK OK Preflush(Spacer) Type: Mud Push Density(ppg) 10.8 Volume pumped(BBLs) 60 Lead Slurry Type: ArcticCem 265 sx/yield=4.12 ft3/sk Density(ppg) 10.7 Volume pumped(BBLs) 195 Mixing/Pumping Rate(bpm): 3 / Tail Slurry L(151 Type: SwiftCem 315 sx/yield=1.16 ft3/sk N Density(ppg) 15.8 Volume pumped(BBLs) 65 Mixing/Pumping Rate(bpm): 3 z Post Flush(Spacer) w Type:H2O Density(ppg) 8.3 Rate(bpm): 20 Volume: 3 m Displacement: Type: Spud Mud Density(ppg) 10.4 Rate(bpm): 3 Volume(actual/calculated): 132/134 FCP(psi): 430 Pump used for disp: Rig MP#2 Bump Plug? X Yes No Bump press 1650 Casing Rotated? Yes X No Reciprocated? Yes X No %Returns during job 90 Cement returns to surface? X Yes_No Spacer returns? X Yes_No Vol to Surf: 140 Cement In Place At: 21:58 Date: 4/3/2016 Estimated TOC: 0 Method Used To Determine TOC: Wet samples Post Job Calculations: Calculated Cmt Vol @ 0%excess: 265.3 Total Volume cmt Pumped: 342 Cmt returned to surface: 0 Calculated cement left in wellbore: 342 OH volume Calculated: 265.3 OH volume actual: 265 Actual%Washout: www.wellez.net WellEz Information Management LLC ver_041416bf 0 • Hilcorp Energy Company CASING &CEMENTING REPORT Lease&Well No. MP K-44 Date Run 10-Apr-16 County State Alaska Supv. S.Sunderland/D.Yessak CASING RECORD Production V TD 8,370.00 Shoe Depth: 8,360.67 PBTD: 8,275.48 No.Jts.Delivered 225 No.Jts.Run 206 No.Jts.Returned 19 Casing(Or Liner)Detail Setting Depths Jts. Component Size Wt. Grade THD Make Length Bottom Top SHOE 7 5/8 BTC DHP 1.64 8,360.67 8,359.03 2 JOINT 7 5/8 29.7 L-80 BTC 82.30 8,359.03 8,276.73 FLOAT COLLAR 7 5/8 BTC DHP 1.25 8,276.73 8,275.48 206 JOINT 7 5/8 29.7 L-80 BTC 8,238.42 8,275.48 37.06 XO AND PUP 7 5/8 29.7 L-80 BTC 5.10 37.06 31.96 CASING HANGER 0.31 31.96 31.65 RKB 31.65 31.65 Csg Wt.On Hook: 163,000 Type Float Collar: DHP No.Hrs to Run: 18 Csg Wt.On Slips: 113,000 Type of Shoe: DHP Casing Crew: Weatherford Rotate Csg Yes X No Recip Csg Yes X No 20 Ft.Min. 10.2 PPG Fluid Description: Drilling mud Liner hanger Info(Make/Model): Liner top Packer?: Yes No Liner hanger test pressure: Floats Held X Yes No Centralizer Placement: CEMENTING REPORT Shoe @ 8360.67 FC @ 8,359.03 Top of Liner Preflush(Spacer) Type: Tuned spacer Density(ppg) 13.5 Volume pumped(BBLs) 40 Lead Slurry Type: Class G 225 sx/yield=1.397 ft3/sk Density(ppg) 14.5 Volume pumped(BBLs) 56 Mixing/Pumping Rate(bpm): 4 Tail Slurry w Type: F Density(ppg) Volume pumped(BBLs) Mixing/Pumping Rate(bpm): v) Post Flush(Spacer) 1— re Type: Density(ppg) Rate(bpm): Volume: LL Displacement: Type: Fresh Water Density(ppg) 8.35 Rate(bpm): 8 Volume(actual/calculated): 382/380 FCP(psi): 1570 Pump used for disp: Rig Bump Plug? X Yes No Bump press 2070 Casing Rotated? Yes X No Reciprocated? Yes X No %Returns during job 100 Cement returns to surface? Yes X No Spacer returns? Yes X No Vol to Surf: 0 Cement In Place At: 1:14 Date: 4/11/2016 Estimated TOC: 7,050 V Method Used To Determine TOC: Calculated Post Job Calculations: Calculated Cmt Vol @ 0%excess: 56 Total Volume cmt Pumped: 56 Cmt returned to surface: 0 Calculated cement left in wellbore: 52 OH volume Calculated: OH volume actual: Actual%Washout: www.wellez.net WellEz Information Management LLC ver_041416bf • MPK-44 FINAL Days vs Depth 0 ffiaMPK-44 Actual 500 — MPK-44 Plan – m MPK-44 Stretch Goal 1000 1500 2000 2500 3000 3500 F 4000 o.d 4500 a, L af, 5000 2 5500 6000 6500 7000 7500 8000 8500 9000 , 1 6 11 16 21 26 Days 6/10/2016 1:52 PM • i MPK-44 MW vs Depth 0 MPK-44 Plan 1000 MPK 44 Actual 2000 3000 4000 5000 0 6000 I a) 7000 8000 9000 10000 11000 12000 8.0 9.0 10.0 11.0 12.0 13.0 14.0 Mud Density(ppg) • 21 6038 RECEIVED Maile Sweigart 2 6 7 7 Alaska North Slope Team �� d.7 2�� Hilcorp Alaska, LLC 3800 Centerpoint Drive, Ste 1400!Anchorage,Alaska 99503 Ilikiwi) tLi,ka.1,111 AOGCC p Office: 907.777.8473 msweigart@hilcorp.com DATA LOGGED fo 1%/2014 v1 K BENDER Date: 6/7/2016 To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL MP K-44 K-44 Prints: RPO-DGR-EWR-ALD-CTN 2IN MD,DGR-EWR-ALD-CTN 2IN TVD E log data CD 1 : Final Well Data Name Date modified Type I a Files Currently on the Disc (6) CGM 5/3/2016 7:21 AM File folder Definitive Survey 5/3/2016 7:21 AM File folder DLLS+LAS 5/3/20167:21 AM File folder EMF 5/3/2016 7:21 AM File folder PDF 5/3/2016 7:21 AM File folder kji TIFF 5/3/2016 7:21 AM File folder Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received B��r� o Date: • RECEIVED APR 222016 AOGCC HALLIBURTDN i em` Service HILCORP ALASKA, LLC For: Luke Keller Date:Wednesday,April 13,2016 MPU K-44 Production Job Date:Sunday,April 10,2016 Sincerely, Karl Molvig • i Legal Notice Warning Disclaimer Although the information contained in this report is based on sound engineering practices,the copyright owner(s)does(do)not accept any responsibility whatsoever,in negligence or otherwise,for any loss or damage arising from the possession or use of the report whether in terms of correctness or otherwise.The application,therefore,by the user of this report or any part thereof,is solely at the user's own risk. Limitations of Liability Except as expressly set forth herein,there are no representations or warranties by Halliburton,express or implied,including implied warranties of merchantability and/or fitness for a particular purpose.In no event will Halliburton or its suppliers be liable for consequential, incidental,special,punitive or exemplary damages(including,without limitation,loss of data,profits,use of hardware,or software). Customer accepts full responsibility for any investment made based on results from the Software.Any interpretations,analyses or modeling of any data,including,but not limited to Customer data,and any recommendation or decisions based upon such interpretations, analyses or modeling are opinions based upon inferences from measurements and empirical relationships and assumptions,which inferences and assumptions are not infallible,and with respect to which professional may differ.Accordingly,Halliburton cannot and does not warrant the accuracy,correctness or completeness of any such interpretation,recommendation,modeling or other products of the Software Product.As such,any interpretation,recommendation or modeling resulting from the Software for the purpose of any drilling, well treatment,production or financial decision will be at the sole risk of Customer.Under no circumstances will Halliburton or its suppliers be liable for any damages. ©2015 Halliburton.All Rights Reserved • S HA .L.IBURTON Customer:HILCORP ALASKA,LLC Job:Production Case:Case 1 Table of Contents 1.0 Executive Summary 4 1.1 Statement 4 2.0 Job Information 5 2.1 Customer Information 5 2.2 Well Information 5 3.0 Real-Time Job Summary 6 3.1 Job Event Log 6 4.0 Attachments 8 4.1 MPU K-44 Production 8 4.2 Pressure Test 9 4.3 Pump Tuned Spacer III 10 4.4 Pump Displacement 11 iCerd Service (v.4.2.393) Page 3 Created:Wednesday,April 13,2016 • HALLIBURT©N Customer:HILCORP ALASKA,LLC Job:Production Case:Case 1 1.0 Executive Summary 1.1 Statement Mr. Keller, Halliburton appreciates the opportunity to perform the cementing services on MPU K-44.A pre-job safety meeting was held where details of the job were discussed, potential safety hazards were reviewed,and environmental compliance procedures were outlined. Following the safety meeting,lines and pumps were primed for the pressure test. After pressure testing on lines was complete the following fluids were pumped: • 40 bbls of 13.5 ppg Tuned Spacer Ill at 1.74 bpm o Average Pressure:365.13 psi;Average Density: 13.19 ppg • 56.1 bbl(225 sks,292.48 cuft)of 14.5 ppg Primary Cement at 2.35 bpm o Average Pressure:316.28 psi;Average Density: 14.37 ppg o Multiple shutdowns were needed due to Recirc pump problems of not getting enough recirc rate. • 379.9 bbls of Displacement o 20 bbl of Freshwater at 3.54 bpm ■ Average Pressure: 140.99 psi;Average Density: 11.35 o Turned pumping over to rig to pump 360 bbl displacement ■ Cement in place at 01:14 on 4/11/2016 Halliburton maintains a continuous quality improvement process and appreciates any comments or suggestions that you may have. Halliburton Energy Services again thanks you for the opportunity to perform services work on this well.We hope to be your solutions provider for future projects. Thank You, Halliburton Energy Services iCen Service (v.4.2.393) Page 4 Created:Wednesday,April 13,2016 i S H A LLIBURTOJ\J Customer:HILCORP ALASKA, LLC Job:Production Case:Case 2.0 Job Information 2.1 Customer Information Customer: Hilcorp Sales Order: 903232165 Job Configuration: Production Well Name: MPU K-44 Start Time: 10:20 PM 4/10/2016 State: Alaska UWI/API: 50-029-23567-00-00 Country: USA H2S/CO2 Present: NO Customer Representative: Sloan Sunderland Halliburton Representative: Karl Molvig,Mike Schwartz Halliburton Cementers: Craig Love,Jesse Slaughter 2.2 Well Information Casing Size and Weight: 7.625"29.7# Casing Depth: 8,364' Float Collar Depth: 8,274' Previous Casing Size&Weight: 10.75"45.5# Previous Casing Depth: 5,596' _ Hole Size: 9.875" Hole Depth: 8,374' Mud: WBM 10.2#;10 PV;26 YP Planned Volume Excess: 30% iCerr Service (v.4.2.393) Page 5 Created:Wednesday,April 13,2016 • • a = i • 0 00 - U 0 .-I 3 Q ,q --l0 J O a) 0_ .ti ;;'4S9 N .y J u N N C ct '+�/ M O U a) ry Y o N v v a ti Q a m 0 E W {1) a o v a C w -0 a c 22 v w w 3 -f6a Q = Ia as w S (0 c .J U TD aID 0 U N a) co a 2 z ai s '5 a, v v @ c O o 0 U W p - N -o E N a 0) Q o i v n 0 0 CO_ -0 as O YO Q C ti C J Y C- 2 Y .0 - ci a) < 5 E U 7 N O m 00 `� c E _ 'n u U c v N ' v 00 o () c U. ) CJ° N -a z 0 i0 c 00 0 J -0 j a) a, D - E Q o QQ -a al 0 Q o E on o y c n m v v c O c 3 c� a3 LU -o v o �a U 0 0 r a) Y 00 to t N > c m M 3 z 3 SI? fo f0 N L ao E a1 as = 00 `1 j v 2 _U N N u U N I- N u v CO O 10 O O V1 O O O O LD O O 00 O Co O O O O N N O O LO N h CO LU LO 01 O O O O N a V V (xi O O O ci .-I .-I co O N 001 Cl) 00 a O N M ci IN l0 M M LU a a 111 l0 ei N ci cc cc cc cc cc W W W W W W LU G K U) W W M VI vl VI v) vl v1 0 U1 U1 0ch OOO OOO O O Cc; CO 01 l0 V O tr)4- ‘'-iO O in in in O ..! m �t in M o M M Mo .-I .-1 c-I s7.4 M N N N (NI O O O O O O O LD O L LU LU W W LU O LU .-1 1-1 c-I c-I .-I c-I c-I r-I c-I ci O O O O O O O O O O N N N N O 0 0 .-I .-I .-I c-I .-I c-I c-I ✓ V 4 V V' a a V a a C a) a) m E > C ✓ n aia) u h a3 a n Q 00 0- b.0 c 'j . 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L,) 6 (rod)OMISSOlc3 .1 4 c,_ -- uf, J, 4 A A A 8 (Uitui(qq)MOH 3 T , ro ,7r a • Schwartz, Guy L (DOA) From: Ted Kramer <tkramer@hilcorp.com> Sent: Friday,April 22, 2016 9:51 AM To: Schwartz,Guy L(DOA) Subject: MPU K-44 Completion ASR1 Program Change 4-22-16 Sundry#316-221, PTD# 316-221 Attachments: MPU K-44 Completion ASR1 Program Change 4-22-16.docx;201604220936.pdf Follow Up Flag: Follow up r I - (, Flag Status: Flagged '21 (e Guy, After we ran the cement bond log on the K-44 well, Hilcorp feels that some changes need to be made to the completion program. The CBL(Halliburton Cast-M)showed that we have cement isolation(above the zone of interest)from 7,800'to 7,300' but we do not have cement isolation below the zone of interest. This is important because there is a known fairly prolific wet zone 25 to 30 feet below the interval we wish to shoot and produce. The attached program change involves attempting a block squeeze below the zone of interest to attempt to isolate the water. I have also attached a piece of the CBL so you can see the interval we want to squeeze and the interval we want to produce. I can bring the entire log over if you would like to see it. The change also involves the perforating of the desired zone. Originally,we were going to perforate before we rigged up on the well. We wish to take care of the block squeeze first so we will now be performing all perforating with the rig on the well. Please let me know what is needed to make this change. If we can handle this by e-mail or a full program change. We currently have planned to move on this well on the 29th of April. Sincerely, Ted Kramer Sr. Operations Engineer Hilcorp Alaska, LLC. 0 907-777-8420 C 985-867-0665 1 ift. -- ' Nun # I sem- 1 r � ! `, ' i "j •. .fir a • ~ 4, I r i , „ .., 4 1_.-- t ! iiIII:1iit _ 1 1 _. ! \. I■ ! ! t i . •.: •; I _ 1, Ij t _ ...� tI t� _.--,_1_ 8050 ii1 i r . ? ' . f L...1. a It' 1 ' IiIILIIIIIIrIIIJ Pii:f fid i 1 t _.lei-� .< _ - - t! i f Is j c 1 , 1 : t - „.,,,, var. ,,_, 1 , .. .5NMI . . � 1IlL . I IIIIIIIIIIIIIIF t 1 � : Num min ow ' tib. _.i� I , •\ --.-� �� ` i _IFOI 111.1 .4_ . it ` E , , •it i LiHhIiiiIflfliflhi .; .: i _.1-... -11111111111111IIII ft! al n il - .litilpip iii t.:-' 1ili .., 1 iii. ... f - I!u1i1I11II♦ II 111 d , i , ,, - i . , . - Ir---,....._/,,i„,,..... ., _ i.,„ NE 1.1 ■. ';u, • ' l ! , 1. �l1.._ . _� 8200 s k , 1111- i I 1 ,-I is is FAO! li an _ . i,.., Ar, I i , 1 i 11 , _ _‘;_,:i_ I 1_11 iIJiiI-Ii: ftir __ 1, „ ____ _ __ ill-t . . 1 1 1 II1 ii N ?1--- __ _.7 _ . .-T _ 1 8250 E_ .d I 310 TT(usec) 210 RB 0 Amplitude(mV)100 Avg Imp 200 MSG 1060 0 Impedance 360 CCL (deg) Amplitude x10 10 (MRayI) 01-50 500 0 6.15 • • Well Prognosis Well: MPU K-44 Hikor)Alaska,LLDate:4/22/2016 Well Name: MPU K-44 API Number: 50-029-23567-00 Current Status: New Drill Oil Well Pad: K-Pad Estimated Start Date: April 23,2016 Rig: ASR#1 Reg.Approval Req'd? Yes Date Reg.Approval Rec'vd: Regulatory Contact: Tom Fouts Permit to Drill Number: 216-038 First Call Engineer: Ted Kramer (907)777-8420 (0) (985)867-0665 Second Call Engineer: Stan Porhola (907)777-8412 (0) (907)331-8228 (M) AFE Number: Current Bottom Hole Pressure: 3,600 psi @ 7,098'TVD (Estimated Virgin Pressure for Kuparuk River) Maximum Expected BHP: 3,600 psi @ 7,098'ND (Estimated Virgin Pressure for Kuparuk River) Current Shut-1n Tbg Pressure: N/A(new Well) Max. Predicted Surf Pressure: 2,890 psi (Based on 0.10 psi/ft gas gradient and 7,098' ND) Brief Well Summary: MPU K-44 is a new drill oil producer. I Objective: \ V The purpose of this work is to Perforate the well with E-line and use t - ASR#1 rig to run the ESP completion. Brief Procedure: Pre-Rig Procedure: 1. MIRU Schlumberger E-line. 2. Test Lubricator to 3,000 psi. 3. PU RIH W/GR/CBL/PNL tool to PBTD. Log Well up to the bottom of the kill string according to Schlumberger procedure. POOH with Tool String. Send log to Anchorage for correlation and perf selection. 5. Clear and level pad area in front of well. Spot rig mats and containment. 6. RD well house and flowlines. Clear and level area around well. 7. RU Little Red Services Pump.Setup reverse out skid and 500 bbl returns tank. 8. Pressure test lines to 3,000 psi. 9. Confirm well is dead. If pressure on well,bleed down and circulate diesel off well with 9.6 ppg brine. Monitor well for pressure. If pressure returns,re-calculate new EMW and kill well by pumping Kill fluid down the tubing taking returns up the annulus to the 500 bbl returns tank. 10. Freeze protect tubing/casing as needed with 60/40 McOH or diesel. 11. RD Little Red Services Pump and reverse out skid. 12. RU crane.Set BPV. ND Tree. NU 11" BOPE. RD crane. 13. NU BOPE house.Spot mud boat. WO Rig Procedure: 14. MIRU Hilcorp ASR#1 WO Rig,ancillary equipment and lines to 500 bbl returns tank. 15. Pull BPV. Bleed any pressure off tubing and casing. • S Well Prognosis Well: MPU K-44 Hilcorn Alaska,LL Date:4/22/2016 16. Kill well w/required Kill weight fluid as needed.Set TWC. 17. Test BOPE to 250 psi Low/3,000 psi High,annular to 250 psi Low/2,000 psi High(hold each ram/valve and test for 5-min). Record accumulator pre-charge pressures and chart tests. a. Perform Test per ASR 1 BOP Test Procedure dated 11/03/2015. b. Notify AOGCC 24 hrs in advance of BOP test. c. Confirm test pressures per the Sundry Conditions of approval. d. Test VBR rams on 4-1/2" and 2-7/8"test joints. e. Submit to AOGCC completed 10-424 within 5 days of the BOP test. 18. Pull TWC. Bleed any pressure off tubing and casing to 500 bbl returns tank. Kill well w/kill weight fluid as needed. 19. MU 4-1/2" landing joint(EUE) and BOLDS. 20. Pull over string weight(approx.55k PU)on tubing hanger to confirm free. LD tubing hanger. a. Contingency: (If a rolling test was conducted.) i. MU new hanger or test plug to the completion tubing. Re-land hanger(or test plug) in tubing head. Test BOPE per standard procedure. 21. POOH W/4-1/2" kill String. (bundle up and send in to be inspected.) 22. PU RIH W/WS to 8,200'. Swap fluid in well to 10.1 ppg completion fluid. POOH with WS. 23. RU E-line. PU Guns and RIH to 8,170'. PU logging on depth placing guns at 8,145-8,155'. Fire Guns. POOH with E-line. 24. PU RIH with WS to 8,140' (+/-). Perform PIR for selecting cementing additives. 25. RU Cementers and test lines according to cementers procedures. Batch mix cement and pump down WS spotting a balanced cement plug from 8,165' up to 8,065'. ef 26. PU workstring to 7,800' (+/-). Clean up tubing to flow back tank. 27. Pressure up on tubing to 500 psi counting strokes to reach and maintain pressure for one hour. a. If cement column is pushed past the top perf,flush cement away and repeat steps 24 LA through 27. Otherwise go to step 28. 28. POOH with WS and pick up bit. RIH and tag top of cement,drill out cement and pressure test perfs to 1,000 psi.for 30 mins. if test fails, repeat repeat squeeze (Steps 24 through 28). If test is good, go to step 29. 29. POOH W/WS. 30. RU E-line, RIH with Cast M cement log. Log past block squeeze to determine if the squeeze was successful. POOH with E-line. 31. PU WS, RIH to 2,000' (+/-). Swap kill weight fluid from 10.1PPG to diesel. (Note:this will give 300 psi of underbalance). 32. RU E-line. PU perf guns and RIH to 8180'. Log on depth according to SLB April 16,2016 tie in log, and perforate the production interval from 8,070'-8,127' (anticipated to be 3 runs.) POOH and RD E-line. 33. RU Summit ESP. 34. PU new ESP completion consisting of the ESP,GLM's,ESP twinseal packer (If needed),chemical injection line, surface controlled annular packer vent valve with control line(If needed),and RIH on 2-7/8" 8RD EUE L-80 tubing as per schematic. a. Set base of ESP 100 ft above the top perforation(+/-7,900')(Pump intake around+/- 7,850'). Land Tubing. Note PU (Pick Up)and SO (Slack Off)weights on tally. 35. RU Pump Truck. Freeze Protect down back side(+/-55 bbls.to 2,000'). 36. Drop ball and Rod, Pressure up on tubing to 3,500 psi.to set packer. Hold 3,500 psi for 1 hour on chart. 37. Bleed off tubing pressure to tank. 38. Line up pump truck and pressure test back side to 1,500 psi for 30 min.on chart. 39. Land tubing hanger. RILDS. Lay down landing joint. • I Well Prognosis Well: MPU K-44 Hilcorp Alaska,LL Date:4/22/2016 40. Set BPV.Test tubing hanger to 250/5,000 psi thru test port. 41. RD Hilcorp ASR#1 WO Rig,ancillary equipment and lines to 500 bbl returns tank. Post-Rig Procedure: 1. RU SL and Pump Truck. Pull Ball and rod and Freeze Protect Tubing. 2. RD mud boat. RD BOPE house. Move to next well location. 3. RU crane. Pull BPV.Set TWC. ND BOPE. 4. NU existing 2-9/16" 5,000#tree.Test tree to 250/5,000 psi. Pull TWC. RD crane. 5. Move 500 bbl returns tank and rig mats to next well location. 6. Replace IA pressure gauge if removed (7-5/8"). 7. Turn well over to production. RU well house and flowlines. .. • yOF Ty 4,1"„ly:cv. THE STATE Alaska Oil and Gas — , 4 o Conservation Commission�- fALA :A ,,i,„,,,,... . i, 333 West Seventh Avenue ' GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 \rh Main: 907.279.1433 F ALAS Is. Fax: 907.276.7542 www.aogcc.alaska.gov Bo York Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Milne Point Field, Kuparuk River Oil Pool, MPU K-44 Permit to Drill Number: 216-038 Sundry Number: 316-221 Dear Mr. York: 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, i() 11.1--e--04L._ Cathy P. oerster Chair DATED this t afday of April, 2016. RBDMS l." APR 1 8 2016 • • RECEIVED STATE OF ALASKA APR 0 5 7016 ALASKA OIL AND GAS CONSERVATION COMMISSION S 41-I t S /(( Q APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate 0 Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate 0 Other Stimulate 0 Pull Tubing ❑ Change Approved Program❑ Plug for Redrill 0 Perforate New Pool 0 Re-enter Susp Well ❑ Alter Casing 0 Other. Install ESP Q • 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number. Hilcorp Alaska LLC Exploratory ❑ Development Q, 216-038 " 3.Address: Stratigraphic 0 Service ❑ 6.API Number: 3800 Centerpoint Dr,Suite 1400 50-029-23567-00-00• 7.If perforating: Rio 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? C.O. 432# Will planned perforations require a spacing exception? Yes ❑ No ❑ MPU K-44 9.Property Designation(Lease Number): 10.Field/Pool(s): (SHL)ADL375133/(TPH/BHL)ADL 375132 Milne Point Unit/Kuparuk River Oil Pool 11. PRESENT WELL CONDITION SUMMARY Total 1::a M (ft): Total DINA: ft): Effective De th D: Effectiv e TVD: MPSP(psi): Plugs(MD): Junk(MD): ±8 64 +7,Y 3 ±8A0 ±7/01 pph 2,675' N/A N/A Casing Length Size MD TVD Burst Collapse Conductor ±110 20" ±110 N/A N/A N/A Surface ±5,614 10-3/4" ±5,614 N/A 3,580psi 2,090psi Production ±8,364 7-5/8" ±8,364 N/A 6,890psi 4,790psi Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 2-7/8" 6.4/L-80/EUE ±8,000 Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): ESP Production Packer and N/A ±2,000(MD)/NA(TVD)and N/A 12.Attachments: Proposal Summary ❑✓ Wellbore schematic El13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑✓ Exploratory ❑ Stratigraphic ❑ Development D. Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 4/18/2016 OIL Y WINJ ❑ ❑ WDSPL El Suspended El 16.Verbal Approval: Date: N/A GAS 0 WAG 0 GSTOR ❑ SPLUG ❑ Commission Representative: N/A GINJ ❑ Op Shutdown ❑ Abandoned 0 17. I hereby certify that the foregoing is true and the procedure approved �/ `r9,G herein will not be deviated from without prior written approval. Contact Ted Kramer Email tkramer( hilcorp.com Printed Name -a wl.P'?m t ri .� Bo York Title Operations Manager Signature Phone 777-8345 Date 4/5/2016 COMMISSION USE ONLY Conditions o approval: Notify Commission so that a representative may witness Sundry Number. %\LZ.—22— Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ Other: f 3 b dotPus_ L l �. �- "'�`' ' I P > CSS' -tt,J , Co S 4- Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes ❑ No Er Subsequent Form Required: le) -`16-7 (6-i,J j 11 APPROVED BY RBDMS i'' PP 1 8 2016 Approved by:aiet7 ja- COMMISSIONER THE COMMISSION Date: 9_4_5-.4 046 gi`fi , q-i'i14 0,RiaGINAiLri4 ` Y'/ 7.1z,. Submit Form and Form 10-403 Revised 11/2015 12 months from the date of approval. Attachments in Duplicate • • ' 111 Well Prognosis • Well: MPU K-44 Hilcorp Alaska,LL' Date:4/1/2016 Well Name: MPU K-44 API Number: 50-029-23567-00 Current Status: New Drill Oil Well Pad: K-Pad Estimated Start Date: April 23, 2016 Rig: ASR#1 Reg.Approval Req'd? Yes Date Reg.Approval Rec'vd: Regulatory Contact: Tom Fouts Permit to Drill Number: 216-038 First Call Engineer: Ted Kramer (907)777-8420 (0) (985)867-0665 Second Call Engineer: Stan Porhola (907)777-8412 (0) (907) 331-8228 (M) AFE Number: Current Bottom Hole Pressure: 3,600 psi @ 7,098'TVD (Estimated Virgin Pressure for Kuparuk River) Maximum Expected BHP: 3,600 psi @ 7,098'TVD (Estimated Virgin Pressure for Kuparuk River) Current Shut-In Tbg Pressure: N/A(new Well) Max. Predicted Surf Pressure: 2,890 psi (Based on 0.10 psi/ft gas gradient and 7,098' TVD) n.- Brief Well Summary: P > 4-L S `'3T MPU K-44 is a new drill oil producer. tf c„t4e..._ Objective: Co 32 c14- The purpose of this work is to Perforate the well with E-line and use the ASR#1 rig to run the ESP completion. Brief Procedure: Pre-Rig Procedure: 1. MIRU Schlumberger E-line. l-"12) 2. Test Lubricator to 3,000 psi. 43rd 9, 3. PU RIH W/GR/CBL/PNL tool to PBTD. Log Well up to the bottom of the kill string according to Lr �,vi ., Schlumberger procedure. POOH with Tool String. Send log to Anchorage for correlation and perf selection. 4. PU RIH with Perf Guns. Perforate well according to selected perfs. RDMO Schlumberger E-line. 5. Clear and level pad area in front of well.Spot rig mats and containment. 6. RD well house and flowlines. Clear and level area around well. 161. 7. RU Little Red Services Pump.Setup reverse out skid and 500 bbl returns tank. 8. Pressure test lines to 3,000 psi. 9. Confirm well is dead. If pressure on well, bleed down and circulate diesel off well with 9.6 ppg brine. Monitor well for pressure. If pressure returns, re-calculate new EMW and kill well by pumping Kill fluid down the tubing taking returns up the annulus to the 500 bbl returns tank. 10. Freeze protect tubing/casing as needed with 60/40 McOH or diesel. �.r. Qe u'r 11. RD Little Red Services Pump and reverse out skid. "' � k c� 12. RU crane.Set BPV. ND Tree. NU 11" BOPE. RD crane. To 13. NU BOPE house.Spot mud boat. WO Rig Procedure: 14. MIRU Hilcorp ASR#1 WO Rig, ancillary equipment and lines to 500 bbl returns tank. 15. Pull BPV. Bleed any pressure off tubing and casing. • •. Well Prognosis • • n Well: MPU K-44 Fiilcorp Alaska,Lia Date:4/1/2016 16. Kill well w/required Kill weight fluid as needed. Set TWC. 17. Test BOPE to 250 psi Low/3,OO�si High, annular to 250 psi Low/3,9436ps' High (hold each ram/valve and test for 5-min). Record accumulator pre-charge pressures and chart tests. a. Perform Test per ASR 1 BOP Test Procedure dated 11/03/2015. b. Notify AOGCC 24 hrs in advance of BOP test. c. Confirm test pressures per the Sundry Conditions of approval. d. Test VBR rams on 4-1/2" and 2-7/8"test joints. e. Submit to AOGCC completed 10-424 within 5 days of the BOP test. 18. Pull TWC. Bleed any pressure off tubing and casing to 500 bbl returns tank. Kill well w/kill weight fluid as needed. 19. MU 4-1/2" landing joint(EUE) and BOLDS. 20. Pull over string weight(approx. 55k PU) on tubing hanger to confirm free. LD tubing hanger. a. Contingency: (If a rolling test was conducted.) hf'r i. MU new hanger or test plug to the completion tubing. Re-and hanger(or test plug) in tubing head. Test BOPE per standard procedure. 21. POOH W/4-1/2" kill String. (bundle up and send in to be inspected.) 22. RU Summit ESP. 23. PU new ESP completion consisting of the ESP, GLM's, ESP twinseal packer (If needed),chemical injection line, surface controlled annular packer vent valve with control line (If needed),and RIH on 2-7/8" 8RD EUE L-80 tubing as per schematic. a. Set base of ESP 100 ft above the top perforation ( +/-7,900') (Pump intake around +/- 7,850'). Land Tubing. Note PU (Pick Up) and SO (Slack Off)weights on tally. 24. RU Pump Truck. Freeze Protect down back side (+/-55 bbls.to 2,000'). 25. Drop ball and Rod, Pressure up on tubing to 3,500 psi.to set packer. Hold 3,500 psi for 1 hour on chart. 26. Bleed off tubing pressure to tank. 27. Line up pump truck and pressure test back side to 1,500 psi for 30 min. on chart. i f 28. Land tubing hanger. RILDS. Lay down landing joint: 29. Set BPV.Test tubing hanger to 250/5,000 psi thru test port. 30. RD Hilcorp ASR#1 WO Rig, ancillary equipment and lines to 500 bbl returns tank. Post-Rig Procedure: 1. RU SL and Pump Truck. Pull Ball and rod and Freeze Protect Tubing. 2. RD mud boat. RD BOPE house. Move to next well location. 3. RU crane. Pull BPV.Set TWC. ND BOPE. 4. NU existing 2-9/16" 5,000#tree.Test tree to 250/5,000 psi. Pull TWC. RD crane. 5. Move 500 bbl returns tank and rig mats to next well location. 6. Replace IA pressure gauge if removed (7-5/8"). 7. Turn well over to production. RU well house and flowlines. • Well Prognosis Well: MPU K-44 Elilcorp Alaska,LL Date:4/1/2016 Attachments: 1. Proposed Schematic 2. BOPE Schematic 3. Wellhead (Post Drill) 4. Wellhead (Post Completion) 5. FWD Circ to Kill Tank Flow Diagram 6. REV Circ to Kill Tank Flow Diagram 7. Bleed to Pits Flow Diagram 8. Blank RWO Changes Form 410 Milne Point Unit Well: MPU K-44 SCHEMATIC Last Completed: 4/12/2016 Hilcorp Alaska,LLC "1)I3)1' P - PTD: 216-038 CASING DETAIL Orig.KB Elev.:63.1'/GL Elev.:29.3' Size Type Wt/Grade/Conn Drift ID Top Btm 1 20" Conductor 78.6/A-53/Weld - Surface 80' 10-3/4" Surface 45.5/L-80/BTC 9.794 Surface 5,597' 7-5/8" Production 29.7/L-80/BTC-M 6.750 Surface 8,361' TUBING DETAIL ES Cementer Ai @1,616 • 4-1/2" Tubing 12.6/L-80/IBT 3.833 Surf 2,225' JEWELRY DETAIL No Depth Item 10-3/4" ' 1 30' Tubing Hanger 4-1/2"x 7-5/8"EUE 8rd threads on top&btm 4-1/2" OPEN HOLE/CEMENT DETAIL ILII string Cond Cmt to surface 13-1/2" Cmt w/342 bbls(Lead)120 bbls(Tail)Cmt to Surface 9-7/8" Cmt w/56 bbls Class G WELL INCLINATION DETAIL KOP @ 789' Max Hole Angle a 35.1 deg.@ 2,391'MD GENERAL WELL INFO API:50-029-23567-00-00 Drilled and Cased,Kill String Installed by Doyon 14 -4/12/2016 Est.TOC @ 7,050 7-5/8"'a . TD=8,370(MD)/TD=7,378'(TVD) PBTD=8,275'(MD)/PBTD=7,283'(VD) Created By:CJD 4/13/2016 • • Milne Point Unit II Well: MPU K-44 PROPOSED Last Completed: Future • Il:ileorp Alaska,LLC PTD: 216-038 CASING DETAIL Size Type Wt/Grade/Conn ID Top Btm 1 Conductor 78.6/A-53/Weld 19.25 Surface ±110' +irP1 k �9 2 10 3/4" Surface 45.5/L-80/BTC 9.95 Surface ±5,614' 20" r,: 7-5/8" Production 29.7/L-80/BTC 6.875 Surface ±8,364' 1- TUBING DETAIL *4 2-7/8" Tubing 6.4/L-80/EUE 2.441 Surface ±8,000' ioq:'71 11 JEWELRY DETAIL 4,4 it No Depth Item 44 1 ±32' Tubing Hanger 1. i$ 61°13 3 2 ±40' GLM s 411 4 3 ±1,900' Stage Tool—ES Cementer EC M 5 4 ±1,950' GLM -1 * 5 ±2,000 ESP Production Packer , 11116 ii 6 ±2,040' GLM t4; 11 7 ±7,950' GLM IN, i 8 ±7,980' X Nipple 414. 9 ±8,000 ESP assy ` 10 ±8,150' Bottom of ESP Sands Top(MD) Btm(MD) Top(TVD) Btm(ND) 144 itrif ±8,059' ±8,089' ±7,063' ±7,093' * Kuparuk 8 + ,110' +8,130' ±7113' ±7,133' _ _ V 40 11 VA kw, 10-3/4" 7 l . 8 ' 1 t ,e.;:t*, I 59 P \k ?i' T }Kupanxk Sands 10 r, JJ 7-5/8"n ''4. .P '°' TD=±8,364'(MD)/TD=±7,363'(1VD) PBTD=±8,200'(MD)/PBTD=±7,201(TVD) Created By:TDF 4/5/2016 • . 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O z Z r a U v c m m O Ot ill' `ate H H ce 7 Y O Y Y V Z - - 2 Yh 9N Y --0OQ-004- _ m 8- 8 H F" g Ll /� Y r 9- 9- a. a tnF FFc a a H I- za a m fi— 1 T ia,i- o.31 a C U j1( O ,- LLT W E U 0C _. _ . . . . .. f o 6 k / -a � .\ / / \ 0 E 5' as 2 oof Qcac Q > o / § 0O. \ � cc � / ) 2 rns 0 2 Yo o . . ¢ = f la @ e e £ o_ 4 CL CT ai § ■ ■ ai ._ 2 cc ca Y \ / ca : o 0 co co a k4- 0 0 B / 2 4) lilt LL cu CD o § t k / : ) § m % ° a _ � o. ._ - o— Toa a �7 § c _ / E f � / co ■ _ o ■ § 7 � q 14 O o. o.0_ ° «Q. ■ off a 2 § � a) = » ■ � & m . a ® C.) § . o 0 0 $ S 7 0 2 it vEll r .. « _ .. c � � / Q a) a ƒ _ @ � o .0 E % °a. 2ca. co 01 V k 2 k k 9 � ci f ` • Bettis, Patricia K (DOA) From: Ted Kramer <tkramer@hilcorp.com> Sent: Wednesday, April 13, 2016 4:27 PM To: Bettis, Patricia K (DOA) Cc: Schwartz, Guy L(DOA) Subject: RE: MPU K-44 (PTD 216038): Sundry Application to Install ESP Attachments: MPK-44 SCHEMATIC 4-13-2016.doc Patricia, The K-44 has been TD'd. TD for the well is 8,370' MD (TVD is 7,376'). Well schematic is attached. Please be advised that this schematic is an intermediate completion with a kill string so that we can log and perforate the well without the rig being on the well.. The final completion will be an ESP completion as described in the Completion Sundry submitted to the AOGCC on April 5th, 2016. I hope this helps. Sincerely, Ted Kramer Sr. Operations Engineer Hilcorp Alaska, LLC. 0 907-777-8420 C 985-867-0665 From: Bettis, Patricia K (DOA) [mailto:patricia.bettis@alaska.gov] Sent: Wednesday, April 06, 2016 12:05 PM To: Ted Kramer Subject: RE: MPU K-44 (PTD 216038): Sundry Application to Install ESP Yes From:Ted Kramer [mailto:tkramer@hilcorp.com] Sent: Wednesday, April 06, 2016 11:24 AM To: Bettis, Patricia K (DOA)<patricia.bettis@alaska.gov> Cc:Tom Fouts<tfouts@hilcorp.com> Subject: RE: MPU K-44 (PTD 216038): Sundry Application to Install ESP Patricia, Just for clarification,you do mean when the well is finished, correct? We are currently on this well drilling ahead. • • Thanks, Ted Kramer Sr. Operations Engineer Hilcorp Alaska, LLC. 0 907-777-8420 C 985-867-0665 From: Bettis, Patricia K (DOA) [mailto:patricia.bettis@alaska.gov] Sent: Wednesday, April 06, 2016 9:59 AM To: Ted Kramer Subject: MPU K-44 (PTD 216038): Sundry Application to Install ESP Good morning Ted, Please provide the following information as soon as possible: 1. Total and effective depths, both MD and TVD; and 2. Final wellbore schematic. Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907)793-1238 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 Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 2 • • 'Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Wednesday,April 13, 2016 4:06 PM To: 'Ted Kramer' Cc: Tom Fouts Subject: RE: K-44 Completion - PTD#216-038 API#50-029-23567-00-00 Ted, You have verbal approval to do the Eline logging through step 3 in the procedure (CBL/PNL). Sundry approval needed to perforate the well and complete. Regards, Guy Schwartz Sr. 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:Ted Kramer [mailto:tkramer@hilcorp.com] Sent: Wednesday, April 13, 2016 11:37 AM To: Schwartz, Guy L(DOA) Cc: Tom Fouts Subject: K-44 Completion - PTD #216-038 API # 50-029-23567-00-00 Guy, Hilcorp submitted a sundry to complete this well with the ASR#1 rig on April 5,2016. I am not sundry is in the approval process but I wanted to ask if we could move forward with the pre-rig work consisting of rigging up e-line, logging, and perforating the well. The drilling rig should be moving off of the well today and we were hoping to move e-line on and log as early as tomorrow(weather permitting). This work is to be done in advance of rigging up ASR#1. Please let me know if this is agreeable to the Comission. Sincerely, Ted Kramer Sr. Operations Engineer Hilcorp Alaska, LLC. 0 907-777-8420 1 i► r• Bettis, Patricia K (DOA) From: Bettis, Patricia K(DOA) Sent: Wednesday, April 06, 2016 9:59 AM To: Ted Kramer(tkramer@hilcorp.com) Subject: MPU K-44 (PTD 216038): Sundry Application to Install ESP Good morning Ted, Please provide the following information as soon as possible: 1. Total and effective depths, both MD and TVD; and 2. Final wellbore schematic. ThankY ou Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 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 Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 yoF Tit THE STATE Alaska Oil and Gas s ofLASKA Conservation Commission 5}fz 333 West Seventh Avenue C GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 +' Main: 907.279.1433 L g1i�e` Fax: 907.276.7542 www.aogcc.alaska.gov Luke Keller Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste. 1400 Anchorage, AK 99503 Re: Milne Point Field, Kuparuk River Oil Pool, MPU K-44 Hilcorp Alaska, LLC Permit to Drill Number: 216-038 (revised) Surface Location: 3744' FSL, 2020' FEL, Sec. 3, T12N, R11E, UM, AK Bottomhole Location: 592' FNL, 1411' FWL, Sec. 2, T12N, R11E, UM, AK Dear Mr. Keller: Enclosed is the approved application for permit to drill the above referenced development well. 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. 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 an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, (0V6. Cathy P. Foerster Chair DATED this affilaiy of March, 2016. D,.... r STATE OF ALASKA AIA OIL AND GAS CONSERVATION COM ION MAR 2 2 2016 PERMIT TO DRILL REVISED ..Or 20 AAC 25.005 C 1 a.Type of Work: lb.Proposed Well Class: Exploratory-Gas ❑ Service- WAG ❑ Service-Disp ❑ 1 c.Specify if well is proposed for: Drill 1=1' Lateral ❑ Stratigraphic Test ❑ Development-Oil Q- Service- Winj ❑ Single Zone O• Coalbed Gas ❑ Gas Hydrates ❑ Redril❑ Reentry❑ Exploratory-Oil ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket ❑ , Single Well ❑ 11.Well Name and Number: Hilcorp Alaska,LLC • Bond No. 022035244 : MPU K-44 5. 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 3800 Centerpoint Drive,Suite 1400,Anchorage,AK 99503 MD: 8,364' • TVD: 7,363' • Milne Point Unit 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Kuparuk River Oil Pool , Surface: 3744'FSL,2020'FEL,Sec 3,T12N,R11 E,UM,AK - (SHL)ADL375133/(TPH/BHL)ADL375132 • Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 604'FNL, 1357'FWL,Sec 2,T12N,R11E,UM,AK N/A 3/25/2016 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 592'FNL, 1411'FWL,Sec 2,T12N,R11 E,UM,AK ADL375133-2560/ADL375132-2560 • 605'to nearest unit boundary 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL(ft): 63.1 ' 15.Distance to Nearest Well Open Surface: x-584535 y- 6005880 Zone-4 • GL Elevation above MSL(ft): 29.3 ' to Same Pool: 1550'to K-13 16.Deviated wells: Kickoff depth: 800 feet• 17.Maximum Potential Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 33.32 degrees i Downhole: 4596 • Surface: 3474 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 20" 78.6# A-53 Weld 110' Surf Surf 110' 110' 13-1/2" 10-3/4" 45.5# L-80 BTC 5,614' Surf Surf 5,614' 4,963' Stg 1 -1912.7 ft3/Stg 2-1457 ft3 9-7/8" 7-5/8" 29.7# L-80 BTC 8,364' Surf Surf 8,364' 7,363' 3 :'e fi,3.88313 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 Q Drilling Program Q Time v.Depth Plot ❑✓ Shallow Hazard Analysis❑ Diverter Sketch Q Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements0 21. Verbal Approval: Commission Representative: Date 22.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Luke Keller Email Ikeller(a hilcorp.com Printed Name Luke Keller Title Drilling Engineer Signature ../ Phone 777-8395 Date 3/22/2016-/- /68 Commission Use Only Permit to Drill '] API Number: Permit Approval See cover letter for other Number:2m1+z—U�j`eS C2vt'Sg 50-029-235 tP 1 O el-O O Date: ?j- q-\Lik 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: d Other: A /000 to /50r, f°�`s.f-- Samples req'd: Yes❑ No Mud log req'd:Yes❑ No[21 HzS measures: Yes E? No Directional svy req'd:Yes['No❑ ... 2560 /1-, ,,.. ; ..- -r Spacing exception req'd: Yes❑ No[' Inclination-only svy req'd:Yes❑ No 101 Post initial injection MIT req'd:Yes❑ No , / / APPROVED BY 7 �1 Approved by: `Y[v COMMISSIONER THE COMMISSION Date) - •Y�� 3 --/L. rG lI i r�c3 ,..310 /IS. ?(&46 Submit Form and Form 10-401 -evised 11/2015) � i pji i t f months from the date of approval(20 AAC 25.005(g)) Attachments in Duplicate • Luke Keller • Hilcorp Alaska, LLC 11 Drilling Engineer P.O. Box 244027 Anchorage,AK 99524-4027 Tel 907 777 8395 Email Ikeller@hilcorp.com Hileorp Alaska,LLC March 22nd, 2016 Commissioner RECEIVED Alaska Oil & Gas Conservation Commission MAR 2016 333 W. 7th Avenue Anchorage, Alaska 99501 AOGCC Re: MPU K-44 Dear Commissioner, Hilcorp would like to move the K-44 BHL approximately 1600' to the south from the approved PTD. These changes were made in an effort to drill the well at the top of the structure in this undeveloped fault block. Included with this revised PTD submission are the following documents: 1. Directional plan 2. Plan and section views of wellpath 3. Anti collision documents 4. Spider plot with section boundaries TVD setting depth of the surface casing will remain unchanged from original PTD submission. Please let us know if additional information is requested from the AOGCC to facilitate this change. If you have any questions, please don't hesitate to contact myself at 777-8395 or Paul Mazzolini at 777-8369. Sincerely, i Luke Keller Drilling Engineer 74" Hilcorp Alaska, LLC Page 1 of 1 0 • Sec.29' „ Sec.28 Sec.27 _ + '1, E-09PB1 e. <—" '' K-06 K-02 -i` ADL028231,, ADL028232 U013N011E wa `• K-05 Sec.33 / Sec.34 ,_ / ` t / \ / ` \ / • • \ / • v ! • I / ...... i ♦ ! K-13 �.. <�,.�,e„wxa,, a;,�.. -. .r ,ar M«t/ \ / • \ MPK-44_BHL MILNE POINT UNIT ' ii/ CASCADE 1A ` ` \ / .-- ' , MPK-44 TPH___-- +-r K-17\, / MPK-44 SHL \ - ,1 ;,-, /CASCADE 1 / / //I . / / _ _ � J ---'----- / /K-i25 • / t I „— —— „ K-21-Sec.4 — // i Sec.3; •. `fi -38 Sec.2 - / K�22PB1 / `• \`• / */ / • `.. / / • / ,K-22 / S. ` I -'�- / �\ ♦ / / \ K-43A S. 4 I / S. I I / \ i' ADL375133 ,/37 U012N011 E ADL375132 •1 K-21A >- I+-K-43 , + C—K-33 \Y Legend Sec.9 Sec.10 MPK-44_SHL Other Surface Holes(SHL) MPK-44 TPH + Other Bottom Holes(BHL) — MPK-44_BHL — — — — Other Well Paths Oil and Gas Unit Boundary I n Milne Point Unit 0 1,000 2,000 Map Date:3/22/2016 MPK-44 Well Feet Milne Point Unit H . . Well: MPK-44 PTD:216-038 SCHEMATIC API: 50-029-23567-00-00 llilc°r"Alaska,LLC CASING DETAIL ''" 1 Btm Size Type Wt Grade Conn. ID Top /!+, '1. (MD) 20" i, 20" Conductor 78.6 A-53 Weld 19.25" Surf 110' * 10-3/4" Surf.Csg 45.5 L-80 BTC 9.95" Surf 5,614' -% i, 7-5/8" Prod 29.7 L-80 BTC 6.875" Surf iii, Casing ' iiiTUBING DETAIL ;'i. w, 2-7/8" Tubing 6.4 L-80 EUE 2.441" Surf 8,000' :o' +. 2 JEWELRY DETAIL i. No. Item Top MD Btm MD ID OD `� 1 Tubing Hanger 32' r, a =,r, 2 Stage Tool–ES Cementer 1,900' . . * ,33 3 ESP Production Packer 2,000' 44 X Nipple 7,600' " • 5 ESP assy 7,700' " ;Aii 6 ESP Cable Tie In 7,900' 4Y, as, A 10-3/4" TOC @ 7,300'MD Formation Tops&Thickness Ni/ o. Formation Top ND Btm ND Thickness 1 Permafrost surf 1,693 1,693 2 Schrader Bluff 4,540 4,773 233 • - +.. 4 3 Colville Mudstones 4,773 6,126 1,353 4 HRZ 6,126 6,605 479 ail*" 5 5 Kalubik Gamma Marker 6,605 6,797 192 'dr- 6 Kuparuk D 6,797 7,063 266 !•; 7 Kuparuk C 7,063 7,363 300 �,., 8 Kuparuk A 7,363 7,413 50 — •- 44 Miluveaek� 7,113 87283 859 42 Jurassic 87283 9-038 775 r. -; 43 Sag-River 8,838 9;243 4-76 • ;.. 47 Shublik 97243 - - •T 'R IPt 1� i -` Planned Perforations ;`g'= No. Formation Top MD Btm MD Top ND Btm ND F 1 Kuparuk 8,059' 8,089' 7,063 7,093 1.411.7-0.:11P.0%.;*.; 2 Kuparuk B7 Sand 8,110' 8,130' 7,113 7,133 'J.40j.illil 7-5/8"Shoe PBTD=8,200'MD!7,201'TVD TD=8,364' MD!7,363' TVD Max Deviation:33.3° Updated by LEK 3/24/16 S 18.0 Cement 7-5/8" Production Casing 18.1 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. • 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. 18.2 R/U cmt head(if not already done so). Ensure top and bottom plugs are loaded correctly. 18.3 Pump 5 bbls 13.5 ppg spacer. Close low torque on plug dropping head,test surface cmt lines to 4000 psi. 18.4 Pump remaining 35 bbls 13.5 ppg spacer. 18.5 Drop bottom plug, Mix and pump slurry per below calculations: Section: Calculation: Vol(BBLS) Vol(ft3) LEAD: No Lead 9-7/8" OH x 7-5/8" csg: Total Lead: TAIL: (8,364'-7,300')x.038 bpf x 1.25 = 50.5 284 9-7/8" OH x 7-5/8"csg: TAIL: 90' x .046 bpf= 4.1 23 ft3 7-5/8" Shoe Track: Total Tail: -55 bbls 308.8 ft3 i� • Slurry Information Stage Lead Tail System Conventional Density 14.5 lb/gal Yield 1.397 t13/sk Mixed Fluid 6.78 gal/sk Expected Thickening 5:00 HR:MIN Expected ISO/API 13 mL in 30 min Fluid Loss Additives Code Description Concentration G Cement 94 lb/sk WBWOB Dl10 Retarder 0.05 gal/sk VBWOC D046 Anti Foam 0.2%BWOB D202 Dispersant 1.5%BWOB D400 Gas Control Agent 0.8%BWOB D154 Extender 8.0%BWOB D174 Expanding Agent 1.5%BWOB 18.7 After pumping cement,drop top plug and displace cement with completion fluid. If it is not feasible to do this,use mud and a clean out trip will be made later. Use rig pumps for displacement. Ensure to have a good baseline measurement for pump displacement ahead of time. Displacement calcs: • 8,200' x .0459 bpf=276 bbls. 18.8 Monitor returns closely while displacing cement. Adjust pump rate if necessary. 18.9 Do not overdisplace by more than 1/2 shoe track volume. Total volume in shoe track is 4.1 bbls 18.10 There should be no cmt returns to surface. TOC is planned to be at 7500' MD. 18.11 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. • If this is the case,monitor the pressure on the casing and do not let it exceed 500 psi over the final pump pressure. • Hilcorp Energy Company Milne Point M Pt K Pad Plan: MPK-44 MPK-44 Plan: MPK-44 WP03 Standard Proposal Report 22 March, 2016 , 11111 14 111 HALLIBURTON Sperry Drilling Services • HALLIBURTONProject: Milne Point REFERENCE INFORMATION ..__.......__..._.___.______.-....---...-.. Site: M Pt K Pad Co-ordinate(N/E)Reference:Well Plan:MPK-44,True North Well. Plan: MPK-44 Vertical(TVD)Reference:Mean Sea Level Measured Depth Reference: MPK-44 63.00usft(Doyon 14) Wellbore: MPK-44 Calculation Method:Minimum Curvature i-tilcor ) Plan: MPK-44 WP03 WELL DETAILS: Plan:MPK-44 NAD 1927(NADCON CONUS) Alaska Zone 04 Ground Level: 29.30 -1000— +N/-S +E/-W Northing Easting Latittude Longitude Slot — 0.00 0.00 6005880.17 584535.02 70°25'33.570 N 149°18'40.034 W CASING DETAILS -500- - TVD TVDSS MD Size Name 4900.00 5614.45 10-3/4 10 3/4" 7299.29 8363.00 7-5/8 7 5/8" 0- 500 500— 1000 1000— 150° 1500— Base permafrost X50 2OpO 2000— _ 25ccl 2500— c_ '0op0 rn - 0 3000— 5�0 O 3 L N 3500— C - (D ~_ - NS�� 4000— a) (00 SchraderBluff H _ 4500 SchraderBluff 10 3/4" 5000— _ 6�c30 5500- 6c3 6000— 1000 _ Top HRZ 500 6500— __Top Kalubik Gamma Marker - Top Kuparuk D Shale 2.0° _ MPK-44 TKUC 3000 7000--- Top Kuparuk C Sand Top Kuparuk A Sand '87364 5/6" —-- 7500— Top Miluveach MPK-44 WP03 - 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 l I l I I I I I I l I I I I I I I l i I l I l I I l I l l l l -1500 -1000 -500 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Vertical Section at 74.61° (1000 usft/in) • • HALLIBURTON Project: Milne Point WELL DETAILS:FlairMPK-44 s Prime Site: M Pt K Pad Ground Level: 29.30 Well: Plan:MPK-44 +N/-S +F/-W Northing Fasting latltnwe Longitude Slot - Wellbore: MPK-44 0.00 0.00 6005880.17 584535.02 70"2533.570N 149"18'40.034W 1800— Plan: MPK-44 WP03 REFERENCE INFORMATION - Co-ordinate(NIE)Reference:Well Plan:MPK-44.True North _ Vertical(TVD)Reference:Mean Sea Level _ Measured Depth Reference:MPK44 @ 63.00usR(Doyen 14) 1600— Calculation Method:Minimum Curvature 1400— - Start 314.78 hold at 804894 MD 1200- - Start 100.00 hold at 7948.94 MD ss MPK44 WP03 1000- 1 7 5/8" Start DLS 5.00 TFO 172.98 ' . - F 1 TD at 8363.73 ra 800— c - = S _On 0 3/4" - S MPK-)4 TKUC 0 600— S ct '-1 _ ,, o s -_ S 0 y 400— Sart 5283.93 hold at 2198.64 MD g s - Start 200.00 hold at 1628.00 MD a 0 ® 200 Start Build 3.00 t q 'S i — J 's 0— '1i, CASING DETAILS -200— TVD TVDSS MD Size Name _ 4900.00 5614.45 10-3/4 10 3/4" 7299.29 8363.00 7-5/8 7 5/8" -400— T M Azimuths to Nue North _ Magnetic North:18.86' -600— _ Magnetic Field Strength:57509.3snT Dip Angle:81.07" - Date:2/2/2016 $00— Model:BGGM2015 11111111 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 111111111 I 1 I I I I I I I I I I I I-I I I I I I I I I -200 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400 3600 West(-)/East(+)(400 usft/in) I cirri1 • e Halliburton ElALLIBU ReTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Plan:MPK-44 Company: Hilcorp Energy Company TVD Reference: MPK-44 @ 63.00usft(Doyon 14) Project: Milne Point MD Reference: MPK-44 @ 63.00usft(Doyon 14) Site: M Pt K Pad North Reference: True Well: Plan:MPK-44 Survey Calculation Method: Minimum Curvature Wellbore: MPK-44 Design: MPK-44 WP03 ___ i, Project Milne Point,ACT,MILNE POINT 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 M Pt K Pad,TR-12-11 WaAAN WN lA NIM „.r , , Hr, v Site Position: Northing: 5,994,744.31 usft Latitude: 70°23'44.152 N From: Map Easting: 583,595.36 usft Longitude: 149°19'11.252 W Position Uncertainty: 0.00 usft Slot Radius: 0" Grid Convergence: 0.64° Weli Plan MPK 44 P.. Wil,a tla i3ffl m,i c .,f,,,, k,&k,l.."' AMEMSE Well Position +N/-S 0.00 usft Northing: 6,005,880.17 usft Latitude: 70°25 33.570 N +E/-W 0.00 usft Easting: 584,535.02 usft Longitude: 149°18'40.034 W Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: 29.30 usft ®,, zn figdida HNNffW�FBkc a.Te1 .^.mn. ,awvek*+se„NNNNNHNNNNNNNNNNNNh MPK44 �, 1„,�. s��a�ea,'�art�aas.awe�a �.x.,, ,�� ,,, y _ aim. ar _. 10 C a t g 3 Ij1�1111'j i Re 111:; '.'111.0,il, >.. I �,p_,Fil_ - ,'lid 111 Ili1,11:d = i 'IN, rr + BGGM2015 2/2/2016 18.86 81.07 57,509 e PRO,.,144,1, WP03 ,,,, --,._ ��1 1° -,,: ..r.,11. ^^^,^^^^^^^wsnn nnnnnnnnnaao ;--,==.=,,,,,,,,,,-----..-- - _ 4'i =,dm li nnnnnnnnn=mmnep Audit Notes: Version: Phase: PLAN Tie On Depth: 33.70 ®u,ei l,Ilil' Depth From(TVI'3Y '' +E1-W Direction r - 1'1 it,,g-mt' ''''''''''''411'..1,-..! (usft) (1 '',,,,,, --....i....,;77.--,,----... aln i 33.70 0.00 0.00 74.61 Plan Sections r; mn raw -4 mlTrITI r a + n ld�(. Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +NI-S +E/-W Rate Rate Rate Tool Face (usft) (°) (°) (usft) usft (usft) (usft) (°/100usft) (°/100usft) (°I100usft) (0) 33.70 0.00 0.00 33.70 -29.30 0.00 0.00 0.00 0.00 0.00 0.00 800.00 0.00 0.00 800.00 737.00 0.00 0.00 0.00 0.00 0.00 0.00 1,628.00 24.84 51.52 1,602.30 1,539.30 109.94 138.32 3.00 3.00 0.00 51.52 1,828.00 24.84 51.52 1,783.80 1,720.80 162.22 204.09 0.00 0.00 0.00 0.00 2,198.64 33.32 76.95 2,108.65 2,045.65 234.05 365.10 4.00 2.29 6.86 67.21 7,482.57 33.32 76.95 6,524.06 6,461.06 889.27 3,192.60 0.00 0.00 0.00 0.00 7,948.94 10.00 77.00 6,954.52 6,891.52 927.83 3,359.14 5.00 -5.00 0.01 179.98 8,048.94 10.00 77.00 7,053.00 6,990.00 931.73 3,376.06 0.00 0.00 0.00 0.00 8,363.73 10.00 77.00 7,363.00 7,300.00 944.03 3,429.32 0.00 0.00 0.00 0.00 322/2016 5:23:26PM Page 2 COMPASS 5000.1 Build 73 • 41) /� Halliburton u LLBURTO1 Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Plan:MPK-44 Company: Hilcorp Energy Company TVD Reference: MPK-44 @ 63.00usft(Doyon 14) Project: Milne Point MD Reference: MPK-44 @ 63.00usft(Doyon 14) Site: M Pt K Pad North Reference: True Well: Plan:MPK-44 Survey Calculation Method: Minimum Curvature Wellbore: MPK-44 Design: MPK-44 WP03 :,,,7,411.1,,,,,,---,---,...= ,- ompanom iwm iii aril 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) -29.30 33.70 0.00 0.00 33.70 -29.30 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 100.00 0.00 0.00 100.00 37.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 200.00 0.00 0.00 200.00 137.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 300.00 0.00 0.00 300.00 237.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 400.00 0.00 0.00 400.00 337.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 500.00 0.00 0.00 500.00 437.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 600.00 0.00 0.00 600.00 537.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 700.00 0.00 0.00 700.00 637.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 800.00 0.00 0.00 800.00 737.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 900.00 3.00 51.52 899.95 836.95 1.63 2.05 6,005,881.82 584,537.05 3.00 2.41 1,000.00 6.00 51.52 999.63 936.63 6.51 8.19 6,005,886.77 584,543.14 3.00 9.62 1,100.00 9.00 51.52 1,098.77 1,035.77 14.63 18.41 6,005,895.01 584,553.26 3.00 21.63 1,200.00 12.00 51.52 1,197.08 1,134.08 25.97 32.67 6,005,906.51 584,567.39 3.00 38.39 1,300.00 15.00 51.52 1,294.31 1,231.31 40.49 50.94 6,005,921.23 584,585.50 3.00 59.86 1,400.00 18.00 51.52 1,390.18 1,327.18 58.16 73.17 6,005,939.15 584,607.52 3.00 85.99 1,500.00 21.00 51.52 1,484.43 1,421.43 78.93 99.30 6,005,960.22 584,633.41 3.00 116.69 1,600.00 24.00 51.52 1,576.81 1,513.81 102.74 129.26 6,005,984.36 584,663.09 3.00 151.89 1,628.00 24.84 51.52 1,602.30 1,539.30 109.94 138.32 6,005,991.66 584,672.07 3.00 162.54 1,700.00 24.84 51.52 1,667.64 1,604.64 128.77 162.00 6,006,010.75 584,695.53 0.00 190.36 1,727.94 24.84 51.52 1,693.00 1,630.00 136.07 171.18 6,006,018.16 584,704.64 0.00 201.16 Base permafrost 1,800.00 24.84 51.52 1,758.39 1,695.39 154.90 194.88 6,006,037.26 584,728.12 0.00 229.01 1,828.00 24.84 51.52 1,783.80 1,720.80 162.22 204.09 6,006,044.68 584,737.24 0.00 239.83 1,900.00 26.08 57.57 1,848.82 1,785.82 180.13 229.29 6,006,062.87 584,762.24 4.00 268.88 2,000.00 28.18 65.04 1,937.84 1,874.84 201.89 269.27 6,006,085.08 584,801.96 4.00 313.20 2,100.00 30.63 71.49 2,024.97 1,961.97 219.95 314.86 6,006,103.65 584,847.34 4.00 361.94 2,198.64 33.32 76.95 2,108.65 2,045.65 234.05 365.10 6,006,118.32 584,897.41 4.00 414.12 2,200.00 33.32 76.95 2,109.79 2,046.79 234.22 365.83 6,006,118.49 584,898.14 0.00 414.87 2,300.00 33.32 76.95 2,193.35 2,130.35 246.62 419.34 6,006,131.50 584,951.50 0.00 469.75 2,400.00 33.32 76.95 2,276.91 2,213.91 259.02 472.85 6,006,144.50 585,004.86 0.00 524.64 2,500.00 33.32 76.95 2,360.48 2,297.48 271.42 526.36 6,006,157.51 585,058.22 0.00 579.52 2,600.00 33.32 76.95 2,444.04 2,381.04 283.82 579.87 6,006,170.51 585,111.59 0.00 634.40 2,700.00 33.32 76.95 2,527.60 2,464.60 296.22 633.38 6,006,183.52 585,164.95 0.00 689.29 2,800.00 33.32 76.95 2,611.16 2,548.16 308.62 686.89 6,006,196.52 585,218.31 0.00 744.17 2,900.00 33.32 76.95 2,694.73 2,631.73 321.02 740.41 6,006,209.52 585,271.67 0.00 799.05 3,000.00 33.32 76.95 2,778.29 2,715.29 333.42 793.92 6,006,222.53 585,325.04 0.00 853.94 3,100.00 33.32 76.95 2,861.85 2,798.85 345.82 847.43 6,006,235.53 585,378.40 0.00 908.82 3,200.00 33.32 76.95 2,945.42 2,882.42 358.22 900.94 6,006,248.54 585,431.76 0.00 963.70 3,300.00 33.32 76.95 3,028.98 2,965.98 370.62 954.45 6,006,261.54 585,485.12 0.00 1,018.59 3,400.00 33.32 76.95 3,112.54 3,049.54 383.02 1,007.96 6,006,274.55 585,538.49 0.00 1,073.47 3,500.00 33.32 76.95 3,196.11 3,133.11 395.42 1,061.47 6,006,287.55 585,591.85 0.00 1,128.35 3,600.00 33.32 76.95 3,279.67 3,216.67 407.82 1,114.99 6,006,300.56 585,645.21 0.00 1,183.24 3,700.00 33.32 76.95 3,363.23 3,300.23 420.22 1,168.50 6,006,313.56 585,698.57 0.00 1,238.12 3,800.00 33.32 76.95 3,446.79 3,383.79 432.62 1,222.01 6,006,326.56 585,751.94 0.00 1,293.00 3,900.00 33.32 76.95 3,530.36 3,467.36 445.02 1,275.52 6,006,339.57 585,805.30 0.00 1,347.89 3/22/2016 5:23:26PM Page 3 COMPASS 5000.1 Build 73 • • Halliburton li ALLIBURTDN Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Plan:MPK-44 Company: Hilcorp Energy Company TVD Reference: MPK-44 @ 63.00usft(Doyon 14) Project: Milne Point MD Reference: MPK-44 @ 63.00usft(Doyon 14) Site: M Pt K Pad North Reference: True Well: ,i Plan:MPK-44 Survey Calculation Method: Minimum Curvature Wellbore: MPK-44 Design: MPK-44 WP03 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) 3,550.92 4,000.00 33.32 76.95 3,613.92 3,550.92 457.42 1,329.03 6,006,352.57 585,858.66 0.00 1,402.77 4,100.00 33.32 76.95 3,697.48 3,634.48 469.82 1,382.54 6,006,365.58 585,912.02 0.00 1,457.65 4,200.00 33.32 76.95 3,781.05 3,718.05 482.22 1,436.05 6,006,378.58 585,965.39 0.00 1,512.54 4,300.00 33.32 76.95 3,864.61 3,801.61 494.62 1,489.56 6,006,391.59 586,018.75 0.00 1,567.42 4,400.00 33.32 76.95 3,948.17 3,885.17 507.02 1,543.08 6,006,404.59 586,072.11 0.00 1,622.30 4,500.00 33.32 76.95 4,031.74 3,968.74 519.42 1,596.59 6,006,417.60 586,125.47 0.00 1,677.19 4,600.00 33.32 76.95 4,115.30 4,052.30 531.82 1,650.10 6,006,430.60 586,178.84 0.00 1,732.07 4,700.00 33.32 76.95 4,198.86 4,135.86 544.22 1,703.61 6,006,443.61 586,232.20 0.00 1,786.95 4,800.00 33.32 76.95 4,282.42 4,219.42 556.62 1,757.12 6,006,456.61 586,285.56 0.00 1,841.84 4,900.00 33.32 76.95 4,365.99 4,302.99 569.02 1,810.63 6,006,469.61 586,338.92 0.00 1,896.72 5,000.00 33.32 76.95 4,449.55 4,386.55 581.42 1,864.14 6,006,482.62 586,392.29 0.00 1,951.60 5,100.00 33.32 76.95 4,533.11 4,470.11 593.82 1,917.66 6,006,495.62 586,445.65 0.00 2,006.49 5,108.24 33.32 76.95 4,540.00 4,477.00 594.85 1,922.07 6,006,496.69 586,450.05 0.00 2,011.01 Schrader Bluff 5,200.00 33.32 76.95 4,616.68 4,553.68 606.22 1,971.17 6,006,508.63 586,499.01 0.00 2,061.37 5,300.00 33.32 76.95 4,700.24 4,637.24 618.62 2,024.68 6,006,521.63 586,552.37 0.00 2,116.25 5,400.00 33.32 76.95 4,783.80 4,720.80 631.02 2,078.19 6,006,534.64 586,605.74 0.00 2,171.14 5,500.00 33.32 76.95 4,867.36 4,804.36 643.42 2,131.70 6,006,547.64 586,659.10 0.00 2,226.02 5,600.00 33.32 76.95 4,950.93 4,887.93 655.83 2,185.21 6,006,560.65 586,712.46 0.00 2,280.90 5,614.45 33.32 76.95 4,963.00 4,900.00 657.62 2,192.94 6,006,562.52 586,720.17 0.00 2,288.83 10 3/4" 5,700.00 33.32 76.95 5,034.49 4,971.49 668.23 2,238.72 6,006,573.65 586,765.82 0.00 2,335.79 5,800.00 33.32 76.95 5,118.05 5,055.05 680.63 2,292.23 6,006,586.65 586,819.19 0.00 2,390.67 5,900.00 33.32 76.95 5,201.62 5,138.62 693.03 2,345.75 6,006,599.66 586,872.55 0.00 2,445.55 6,000.00 33.32 76.95 5,285.18 5,222.18 705.43 2,399.26 6,006,612.66 586,925.91 0.00 2,500.44 6,100.00 33.32 76.95 5,368.74 5,305.74 717.83 2,452.77 6,006,625.67 586,979.27 0.00 2,555.32 6,200.00 33.32 76.95 5,452.31 5,389.31 730.23 2,506.28 6,006,638.67 587,032.64 0.00 2,610.20 6,300.00 33.32 76.95 5,535.87 5,472.87 742.63 2,559.79 6,006,651.68 587,086.00 0.00 2,665.09 6,400.00 33.32 76.95 5,619.43 5,556.43 755.03 2,613.30 6,006,664.68 587,139.36 0.00 2,719.97 6,500.00 33.32 76.95 5,702.99 5,639.99 767.43 2,666.81 6,006,677.69 587,192.72 0.00 2,774.85 6,600.00 33.32 76.95 5,786.56 5,723.56 779.83 2,720.32 6,006,690.69 587,246.09 0.00 2,829.74 6,700.00 33.32 76.95 5,870.12 5,807.12 792.23 2,773.84 6,006,703.69 587,299.45 0.00 2,884.62 6,800.00 33.32 76.95 5,953.68 5,890.68 804.63 2,827.35 6,006,716.70 587,352.81 0.00 2,939.50 6,900.00 33.32 76.95 6,037.25 5,974.25 817.03 2,880.86 6,006,729.70 587,406.17 0.00 2,994.39 7,000.00 33.32 76.95 6,120.81 6,057.81 829.43 2,934.37 6,006,742.71 587,459.54 0.00 3,049.27 7,006.21 33.32 76.95 6,126.00 6,063.00 830.20 2,937.69 6,006,743.52 587,462.85 0.00 3,052.68 Top HRZ 7,100.00 33.32 76.95 6,204.37 6,141.37 841.83 2,987.88 6,006,755.71 587,512.90 0.00 3,104.15 7,200.00 33.32 76.95 6,287.94 6,224.94 854.23 3,041.39 6,006,768.72 587,566.26 0.00 3,159.04 7,300.00 33.32 76.95 6,371.50 6,308.50 866.63 3,094.90 6,006,781.72 587,619.62 0.00 3,213.92 7,400.00 33.32 76.95 6,455.06 6,392.06 879.03 3,148.42 6,006,794.73 587,672.99 0.00 3,268.80 7,482.57 33.32 76.95 6,524.06 6,461.06 889.27 3,192.60 6,006,805.46 587,717.05 0.00 3,314.12 7,500.00 32.45 76.95 6,538.70 6,475.70 891.41 3,201.82 6,006,807.70 587,726.24 5.00 3,323.58 7,576.98 28.60 76.96 6,605.00 6,542.00 900.23 3,239.90 6,006,816.96 587,764.22 5.00 3,362.63 Top Kalubik Gamma Marker 3/22/2016 5:23:26PM Page 4 COMPASS 5000.1 Build 73 • Halliburton 1-IALLIBJRTN Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Plan:MPK-44 Company: Hilcorp Energy Company TVD Reference: MPK-44 @ 63.00usft(Doyon 14) Project: Milne Point MD Reference: MPK-44 @ 63.00usft(Doyon 14) Site: 4411 M Pt K Pad North Reference: True Well: Plan:MPK-44 Survey Calculation Method: Minimum Curvature Wellbore: MPK-44 Design:, MPK-44 WP03 ,. auuaaHmwwimii L, Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-WNorthing EastingDLS Vert Section (usft) (°) (°) (usft) usft (usft) (usft) ,4 (usft) (usft) j l 6,562.32 7,600.00 27.45 76.96 6,625.32 6,562.32 902.67 3,250.43 6,006,819.52 587,774.72 5.00 3,373.44 7,700.00 22.45 76.96 6,715.96 6,652.96 912.18 3,291.51 6,006,829.49 587,815.69 5.00 3,415.57 7,786.42 18.13 76.97 6,797.00 6,734.00 918.94 3,320.70 6,006,836.58 587,844.79 5.00 3,445.50 Top Kuparuk D Shale 7,800.00 17.45 76.97 6,809.93 6,746.93 919.87 3,324.74 6,006,837.56 587,848.82 5.00 3,449.64 7,900.00 12.45 76.99 6,906.52 6,843.52 925.68 3,349.86 6,006,843.65 587,873.87 5.00 3,475.41 7,948.94 10.00 77.00 6,954.52 6,891.52 927.83 3,359.14 6,006,845.90 587,883.13 5.00 3,484.92 8,000.00 10.00 77.00 7,004.80 6,941.80 929.82 3,367.78 6,006,847.99 587,891.74 0.00 3,493.78 8,048.94 10.00 77.00 7,053.00 6,990.00 931.73 3,376.06 6,006,850.00 587,900.00 0.00 3,502.27 8,059.10 10,00 77.00 7,063.00 7,000.00 932.13 3,377.78 6,006,850.42 587,901.71 0.00 3,504.03 Top Kuparuk C Sand 8,100.00 10.00 77.00 7,103.28 7,040.28 933.73 3,384.70 6,006,852.09 587,908.61 0.00 3,511.13 8,200.00 10.00 77.00 7,201.76 7,138.76 937.63 3,401.62 6,006,856.19 587,925.49 0.00 3,528.48 8,300.00 10.00 77.00 7,300.24 7,237.24 941.54 3,418.54 6,006,860.29 587,942.36 0.00 3,545.83 8,363.00 10.00 77.00 7,362.29 7,299.29 944.00 3,429.20 6,006,862.87 587,952.99 0.00 3,556.76 7 5/8" 8,363.73 10.00 77.00 7,363.00 7,300.00 944.03 3,429.32 6,006,862.90 587,953.11 0.00 3,556.89 Top Kuparuk A Sand Targets Target Name 1 -hit/miss target I 1' Dip Angle Dip Dir „ TVD +NI-S +E/-W Northing j p�l Easting Shape (°) (°) (usft) (usft) (usft) (usft) l (usft) MPK-44 TKUC 0.00 0.00 7,053.00 931.73 3,376.06 6,006,850.00 587,900.00 -plan hits target center -Circle(radius 50.00) "'Casing Por�� a Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) NameC') (^) 5,614.45 4,963.00 10 3/4" 10-3/4 13-1/2 8,363.00 7,362.29 7 5/8" 7-5/8 9-7/8 3/22/2016 5:23:26PM Page 5 COMPASS 5000.1 Build 73 • • Halliburton HALLIBU RTDN Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-or. ,1a4+ 3 101 1` Well Plan:MPK-44 Company: Hilcorp Energy Company TVD Reference 11! , �I] MPK-44 @ 63.00usft(Doyon 14) Project: Milne Point MD Reference: (, J,„ ,MPK-44 @ 63.00usft(Doyon 14) I Site: M Pt K Pad North Reference: True Well: Plan:MPK-44 Survey Calculation Method: Minimum Curvature I Wellbore: MPK-44 Design: MPK-44 WP03 I Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (usft) (usft) Name Lithology (°) (�)' 8,059.10 7,063.00 Top Kuparuk C Sand 0.00 1,727.94 1,693.00 Base permafrost 0.00 7,786.42 6,797.00 Top Kuparuk D Shale 0.00 8,363.73 7,363.00 Top Kuparuk A Sand 0.00 5,108.24 4,540.00 Schrader Bluff 0.00 7,576.98 6,605.00 Top Kalubik Gamma Marker 0.00 7,006.21 6,126.00 Top HRZ 0.00 3/22/2016 5:23:26PM Page 6 COMPASS 5000.1 Build 73 • • I Hilcorp Energy Company F : Milne Point MPtKPad Plan: MPK-44 MPK-44 MPK-44 WP03 e Sperry Drilling Services Clearance Summary Anticollision Report 22 March,2016 Closest Approach 30 Proximity Scan on Current Survey Data(North Reference) Reference Design: M Pt K Pad-Plan:MPK-44-MPK-44-MPK-44 WP03 Well Coordinates: 6,005,880.17 N,584,535.02 E(70°25'33.57"N,149°18'40.03"W) Datum Height: MPK-44 @ 63.00usk(Doyon 14) Scan Range: 0.00 to 8,363.73 usk.Measured Depth. Scan Radius is 1,033.00 usft.Clearance Factor cutoff is Unlimited.Max Ellipse Separation is Unlimited Geodetic Scale Factor Applied Version: 5000.1 Build:73 Scan Type: GLOBAL FILTER APPLIED:All wellpaths within 200'+100/1000 of reference Scan Type: 25.00 HALLIBURTON Sperry Drilling Services 0 • Hilcorp Energy Company HALLIBURTON Milne Point Anticollision Report for Plan: MPK-44-MPK-44 WP03 Closest Approach 3D Proximity Scan on Current Survey Data(North Reference) Reference Design: M Pt K Pad-Plan:MPK-44-MPK-44-MPK-44 WP03 Scan Range: 0.00 to 8,363.73 usft.Measured Depth. Scan Radius is 1,033.00 usft. Clearance Factor cutoff is Unlimited. Max Ellipse Separation is Unlimited Measured Minimum @Measured Ellipse @Measured Clearance Summary Based on Site Name Depth Distance Depth Separation Depth Factor Minimum Separation Warning Comparison Well Name-Wellbore Name-Design (usft) (usft) (usft) (usft) usft M Pt Cascade CASCADE 1-CASCADE 1-CASCADE 1 3,894.95 412.77 3,894.95 377.06 3,464.53 11.557 Centre Distance Pass- CASCADE 1-CASCADE 1-CASCADE 1 3,900.00 412.79 3,900.00 377.00 3,468.15 11.536 Ellipse Separation Pass- CASCADE 1-CASCADE 1-CASCADE 1 4,000.00 418.89 4,000.00 381.83 3,538.31 11.303 Clearance Factor Pass- CASCADE I-CASCADE 1-A-CASCADE 1-A 3,952.52 303.22 3,952.52 266.78 3,601.30 8.322 Ellipse Separation Pass- CASCADE 1-CASCADE 1-A-CASCADE I-A 3,975.00 303.72 3,975.00 267.14 3,615.56 8.303 Clearance Factor Pass- M Pt K Pad MPK-02-MPK-02-MPK-02 995.68 46.25 995.68 22.42 982.22 1.941 Centre Distance Pass- MPK-02-MPK-02-MPK-02 1,000.00 46.25 1,000.00 22.40 986.47 1.939 Ellipse Separation Pass- MPK-02-MPK-02-MPK-02 1,025.00 46.43 1,025.00 22.44 1,011.05 1.936 Clearance Factor Pass- MPK-05-MPK-05-MPK-05 710.79 108.58 710.79 88.29 694.43 5.351 Centre Distance Pass- MPK-05-MPK-05-MPK-05 725.00 108.59 725.00 88.27 708.49 5.344 Ellipse Separation Pass- MPK-05-MPK-05-MPK-05 800.00 108.93 800.00 88.45 782.98 5.320 Clearance Factor Pass- MPK-06-MPK-06-MPK-06 50.00 30.34 50.00 28.64 47.89 17.885 Centre Distance Pass- MPK-06-MPK-06-MPK-06 1,319.97 32.78 1,319.97 10.74 1,313.25 1.488 Ellipse Separation Pass- MPK-06-MPK-06-MPK-06 1,325.00 32.80 1,325.00 10.75 1,318.13 1.487 Clearance Factor Pass- MPK-09-MPK-09-MPK-09 322.35 107.96 322.35 97.45 322.56 10.275 Centre Distance Pass- MPK-09-MPK-09-MPK-09 500.00 110.67 500.00 94.67 496.70 6.917 Ellipse Separation Pass- MPK-09-MPK-09-MPK-09 700.00 122.52 700.00 101.63 691.63 5.865 Clearance Factor Pass- MPK-13-MPK-13-MPK-13 997.65 107.18 997.65 86.27 992.63 5.125 Centre Distance Pass- MPK-13-MPK-13-MPK-13 1,000.00 107.18 1,000.00 86.27 994.97 5.124 Clearance Factor Pass- MPK-17-MPK-17-MPK-17 825.40 118.83 825.40 98.31 810.93 5.791 Ellipse Separation Pass- MPK-17-MPK-17-MPK-17 850.00 118.99 850.00 98.42 835.49 5.785 Clearance Factor Pass- MPK-18-MPK-18-MPK-18 170.01 59.06 170.01 54.13 169.41 11.973 Centre Distance Pass- MPK-18-MPK-18-MPK-18 700.00 62.14 700.00 39.87 698.91 2.790 Ellipse Separation Pass- MPK-18-MPK-18-MPK-18 850.00 63.67 850.00 40.61 848.79 2.761 Clearance Factor Pass- MPK-18-MPK-18A-MPK-18A 170.01 59.06 170.01 54.13 169.41 11.973 Centre Distance Pass- MPK-18-MPK-18A-MPK-18A 700.00 62.14 700.00 39.87 698.91 2.790 Ellipse Separation Pass- 22 March,2016- 17:24 Page 2 of 6 COMPASS . • Hilcorp Energy Company HALLIBURTON Milne Point Anticollision Report for Plan: MPK-44-MPK-44 WP03 Closest Approach 3D Proximity Scan on Current Survey Data(North Reference) Reference Design: M Pt K Pad-Plan:MPK-44-MPK-44-MPK-44 WP03 Scan Range: 0.00 to 8,363.73 usft.Measured Depth. Scan Radius is 1,033.00 usft.Clearance Factor cutoff is Unlimited.Max Ellipse Separation is Unlimited Measured Minimum @Measured Ellipse @Measured Clearance Summary Based on Site Name Depth Distance Depth Separation Depth Factor Minimum Separation Warning Comparison Well Name-Wellbore Name-Design (usft) (usk) (usft) (usft) usft MPK-18-MPK-18A-MPK-18A 850.00 63.67 850.00 40.61 848.79 2.761 Clearance Factor Pass- MPK-21(check)-MPK-21-MPK-21 50.00 141.87 50.00 140.17 48.24 83.659 Centre Distance Pass- MPK-21(check)-MPK-21-MPK-21 700.00 148.10 700.00 127.87 696.70 7.320 Ellipse Separation Pass- MPK-21(check)-MPK-21-MPK-21 800.00 149.45 800.00 128.99 796.33 7.306 Clearance Factor Pass- MPK-21(check)-MPK-21A-MPK-21A 50.00 141.87 50.00 140.17 48.15 83.659 Centre Distance Pass- MPK-21(check)-MPK-21A-MPK-21A 700.00 148.10 700.00 127.87 696.61 7.320 Ellipse Separation Pass- MPK-21(check)-MPK-21A-MPK-21A 800.00 149.45 800.00 128.99 796.24 7.306 Clearance Factor Pass- MPK-21(check)-MPK-21APB1-MPK-21APB1 50.00 141.87 50.00 140.17 48.15 83.659 Centre Distance Pass- MPK-21(check)-MPK-21APB1-MPK-21APB1 700.00 148.10 700.00 127.87 696.61 7.320 Ellipse Separation Pass- MPK-21(check)-MPK-21APB1-MPK-21APB1 800.00 149.45 800.00 128.99 796.24 7.306 Clearance Factor Pass- MPK-22-MPK-22-MPK-22 10661 90.07 106.61 86.98 106.06 29.113 Centre Distance Pass- MPK-22-MPK-22-MPK-22 803.73 90.90 803.73 69.66 803.61 4.281 Clearance Factor Pass- MPK-22-MPK-22PB1-MPK-22 Pb1 106.61 90.07 106.61 86.98 106.06 29.113 Centre Distance Pass- MPK-22-MPK-22PB1-MPK-22 Pb1 803.73 90.90 803.73 69.66 803.61 4.281 Clearance Factor Pass- MPK-25-MPK-25-MPK-25 598.09 157.76 598.09 139.33 596.12 8.558 Centre Distance Pass- MPK-25-MPK-25-MPK-25 700.00 157.96 700.00 137.78 697.52 7.825 Ellipse Separation Pass- MPK-25-MPK-25-MPK-25 825.00 158.96 825.00 138.50 821.22 7.769 Clearance Factor Pass- MPK-30-MPK-30-MPK-30 1,120.39 120.32 1,120.39 98.96 1,118.83 5.632 Centre Distance Pass- MPK-30-MPK-30-MPK-30 1,125.00 120.33 1,125.00 98.95 1,123.37 5.630 Ellipse Separation Pass- MPK-30-MPK-30-MPK-30 1,150.00 120.47 1,150.00 99.05 1,147.99 5.625 Clearance Factor Pass- MPK-33-MPK-33-MPK-33 50.00 210.91 50.00 209.60 33.75 160.915 Centre Distance Pass- MPK-33-MPK-33-MPK-33 800.37 211.84 800.37 191.26 784.50 10.293 Ellipse Separation Pass- MPK-33-MPK-33-MPK-33 875.00 212.86 875.00 192.07 859.06 10.240 Clearance Factor Pass- MPK-34-MPK-34-MPK-34 301.01 179.43 301.01 170.50 284.81 20.100 Centre Distance Pass- MPK-34-MPK-34-MPK-34 625.00 182.01 625.00 163.00 606.04 9.574 Ellipse Separation Pass- MPK-34-MPK-34-MPK-34 700.00 183.46 700.00 163.17 679.39 9.044 Clearance Factor Pass- MPK-37-MPK-37-MPK-37 286.09 236.78 286.09 228.31 284.10 27.962 Centre Distance Pass- MPK-37-MPK-37-MPK-37 700.00 238.86 700.00 218.55 695.51 11.760 Ellipse Separation Pass- MPK-37-MPK-37-MPK-37 875.00 240.26 875.00 219.59 873.92 11.623 Clearance Factor Pass- MPK-38-MPK-38-MPK-38 33.70 210.20 33.70 209.18 31.50 207.947 Centre Distance Pass- 22 March,2016- 17:24 Page 3 o/6 COMPASS • • Hilcorp Energy Company HALLIBURTON Milne Point Anticollision Report for Plan: MPK-44-MPK-44 WP03 Closest Approach 3D Proximity Scan on Current Survey Data(North Reference) Reference Design: M Pt K Pad-Plan:MPK-44-MPK-44-MPK-44 WP03 Scan Range: 0.00 to 8,363.73 usft.Measured Depth. Scan Radius is 1633.00 usft.Clearance Factor cutoff is Unlimited.Max Ellipse Separation is Unlimited Measured Minimum @Measured Ellipse @Measured Clearance Summary Based on Site Name Depth Distance Depth Separation Depth Factor Minimum Separation Warning Comparison Well Name-Wellbore Name-Design (usft) (usft) (usft) (usft) usft MPK-38-MPK-38-MPK-38 700.00 215.04 700.00 194.76 695.64 10.604 Ellipse Separation Pass- MPK-38-MPK-38-MPK-38 950.00 217.48 950.00 196.67 947.24 10.449 Clearance Factor Pass- MPK-38-Plan MPK-38A-MPK-38A WP01 33.70 210.20 33.70 209.45 34.00 280.112 Centre Distance Pass- MPK-38-Plan MPK-38A-MPK-38A WP01 700.00 215.04 700.00 195.02 698.14 10.742 Ellipse Separation Pass- MPK-38-Plan MPK-38A-MPK-38A WP01 975.00 218.06 975.00 197.45 975.09 10.581 Clearance Factor Pass- MPK-43-MPK-43-MPK-43 823.72 275.42 823.72 254.93 809.20 13.444 Centre Distance Pass- MPK-43-MPK-43-MPK-43 825.00 275.42 825.00 254.93 810.48 13.442 Ellipse Separation Pass- MPK43-MPK-43-MPK-43 875.00 276.01 875.00 255.42 858.15 13.407 Clearance Factor Pass- MPK43-MPK-43A-MPK-43A 823.72 275.42 823.72 254.93 809.20 13.444 Centre Distance Pass- MPK-43-MPK43A-MPK-43A 825.00 275.42 825.00 254.93 810.48 13.442 Ellipse Separation Pass- MPK43-MPK43A-MPK43A 875.00 276.01 875.00 255.42 858.15 13.407 Clearance Factor Pass- Plan MPK-14-MPK-14-MPK-14 wp02 908.54 25.60 908.54 3.34 908.96 1.150 Clearance Factor Pass- Sur ey tool program From To Survey/Plan Survey Tool (usft) (usft) 33.70 600.00 MPK-44 WP03 INC 600.00 5,802.00 MPK-44 WP03 MWD+IFR2+MS+sag 5,802.00 8,363.73 MPK-44 WP03 MWD+IFR2+MS+sag Ellipse error terms are correlated across survey tool tie-on points. Calculated ellipses incorporate surface errors. Separation is the actual distance between ellipsoids. Distance Between centres is the straight line distance between wellbore centres. Clearance Factor=Distance Between Profiles/(Distance Between Profiles-Ellipse Separation). All station coordinates were calculated using the Minimum Curvature method. 22 March,2016- 17:24 Page 4 of 6 COMPASS Ill 0 Hilcorp Energy Company HALLIBURTON Milne Point Anticollision Report for Plan: MPK-44-MPK-44 WP03 Direction and Coordinates are relative to True North Reference. Vertical Depths are relative to MPK-44 @ 63.O0usft(Doyon 14). Northing and Easting are relative to Plan:MPK-44. Coordinate System is US State Plane 1927(Exact solution),Alaska Zone 04. Central Meridian is-150.00°,Grid Convergence at Surface is: 0.65°. LEGEND Ladder Plot $CASCADE 1,CASCADE 1,CASCADE 1 V1 -4-CASCADE 1,CASCADE 1-A,CASCADE I-A V1 i� 01, -4-MPK-02,MPK-02,MPK-02 V1 c i �� iyj i $MPK-05,MPK-05,MPK-05 V1 /. .. N �N , „7/' Vii. _ � •�MPK-06,MPK-06,MPK-06V1 n ?�� $MPK-09,MPK-09,MPK-09V5 �. /L 1 �� r/- �r,�*�� -3—MPK-13,MPK-13, -13V5 M J - �, �;'� . - - J -- •--- --J----- -A-MPK-17,MPK-17,MPK-17 V1 /�r� �� $MPK-18,MPK-18,MPK-18V24 'n-3 600 p `?t .I -{- MPK-EKPBlV3 8,MPK-18A,MPK-18AV1 co //j.44 -A-MPK-21(check),MP -21,MPK-21V3 ��t•I :fit .�� ii $ $MPK-22,MPK-22,MPK-22 V5 ��1/�� . -9- MPK-22,MPK-22PB1,MPK-22 Pb1 VO o , ,,,� O 300 - 4' $ MPK-25,MPK-25,MPK-25 V2 MI i� e iM I ��/// ��-��% � i i $ MPK30,MPK-30,MPK-30 V4 ?i (l N = Z-T /'� si�, $ MPK33,MPK-33,MPK-33V1 J i ---_I,- $ MPK34,MPK34,MPK-34 V3 U ,' i -4- MPK37,MPK-37,MPK-37 V1 -. '-m -.aw+' I -0- MPK-38,MPK-38,MPK-38 V1 I -9- MPK-38,Plan MPK 38A,MPK38A WP01 V16 0 1000 2000 3000 4000 5000 -9- MPK-43,MPK-43,MPK-43 V1 Measured Depth(1000 uslt/in) $MPK-43,MPK-43A,MPK-43A V3 -9E-Plan MPK-14,MP K-14,MPK-14 wp02 V14 22 March,2016- 17:24 Page 5 of 6 COMPASS • • Hilcorp Energy Company HALLIBURTON Milne Point Anticollision Report for Plan: MPK-44-MPK-44 WP03 Clearance Factor Plot: Measured Depth versus Separation(Clearance)Factor LEGEND 10.00- 1 ( �gnp� ' ' ' {l -Is-CASCADE 1,CASCADE 1,CASCADE 1V1 ��` 11.11r fi ---- -- �I - " f,... -i<-CASCADE 1,CASCADE 1-A,CASCADE 1-A V1 111 m I ,. ,...'�l' - -- ...f_ " , '- -MPK-02,MPK-052,, -02 V1 8.75 I / '% -- ,\� -- -- - $MPK-05,MPK-0S,MPK-05 V1 t F,^{1 4E MPK-06,MPK-06,MPK-06V1 ' tip $MPK-09,MPK-09,MPK-09 V5 ^ Tom- � i� I!' \ $ MPK-13,MPK-13,MPK-13 V5 i X $ MPK-17,MPK-17,MPK-17 V1 N .1 � !,.. . $ MPK-18,MPK-18,MPK-18V24 �. 6.25— I 4A �A ._. ::-..°). I �•:•�r� r - -- -- +- • ^ - MPK-18,MPK-18A,MPK-18AV1 NNW a -6-MPK-21(ched),MPK-21,MPK-21 V3 0 5.00- �` !'�!!! f .�..�_ --. ,• �•�__ $MPK-21(chedc),MPK-21A,MPK-21AV9 y�; pr 1- - . $ MPK-21(check),MPK-21APB1,MPK-21APB1 V3 t. K-22 V5 u5 3.75- '. _� as ' / ------ '-- - -- - $MPK-22,MPK-22PBP MPK-22 Pb1 VO 4�_ - - ---lit 111'-11111i $MPK-25,MPK-25,MPK-25 V2 --X-MPK-30,MPK-30 MPK-30 V4 2.50- V I $MPK-33,MPK-33,MPK-33 V1 Collision Avoidance Req, • 1,, net- MPK-34,MPK-34,MPK-34 V3 —No-GoZone-StopDining'�. -4-MPK-37,MPK-37,MPK-37 V1 1.25- __.. ._ .. -e-MPK-38,MPK-38,MPK-38 V1 . ir -.. -. $MPK-38,Plan MPK-38A,MPK-38A1/1/P01V16 0.00 iil �..i ii ii ( l ii -13-MPK-43,MPK 43,MPK 43 V1 0 475 950 1425 1900 2375 2850 3325 3800 4275 4750 5225 5700 -1'-MPK-43,MPK-43A,MPK-43AV3 Mea9ued Depth(950 usft/n) - Plan MPK-14,MPK-14,MPK-14vvp02 V14 22 March,2016- 17:24 Page 6 o(6 COMPASS • • Schwartz, Guy L (DOA) From: Luke Keller <Ikeller@hilcorp.com> Sent: Thursday, March 24, 2016 11:31 AM To: Schwartz, Guy L(DOA) Cc: Cody Dinger- (C) Subject: RE: K-44 (PTD 216-038) Attachments: Revised K-44 Cement Program.docx; MPK-44 Schematic 3-24-16.doc Follow Up Flag: Follow up Flag Status: Flagged Guy, See attached revised well sketch—changes highlighted in yellow. Also attached are the revised cement calculations. Note that the new well plan DOES NOT include the tail down into the Sag River. We will TD just past the Kuparuk, so we'll be pumping less cement. On the 10-401 we sent yesterday,we showed 865 ft3, but will only be pumping enough to get TOC at 7,300',which works out to 308.8 ft3. Do you want me to correct and resend the document? Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907-777-8395 From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent:Thursday, March 24, 2016 10:26 AM To: Luke Keller Subject: K-44(PTD 216-038) Luke, Can you send the new well sketch and a revised cement plan for the 7 5/8"casing. Surface casing is not changing much... Guy Schwartz Sr. 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). 1 • TRANSMITTAL LETTER CHECKLIST WELL NAME: /n'rL 1<, 1141 PTD: ago 03? Development Service Exploratory Strati a hic Test Non-Conventional P rY ln' p FIELD: CAE. ai\er POOL: I /lE 11)4 &rag A,1/e,a- Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI The permit is for a new wellbore segment of existing well Permit LATERAL No. , API No. 50- - - - (If last two digits Production should continue to be reported as a function of the original in API number are API number stated above. between 60-69) 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 Pilot Hole name ( 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 conservation Spacing Exception 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. 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N E rn J:; 4k •C a CO 2 a Cn O a CO 0 Ili CI E• a Q a s lL a 0 Q d ¢ a OF Tit II 111 9w\l1//7�sA THE STATE Alaska Oil and Gas Fes;-s�-��, o Conservation Commission _.;'' _=_ fALASIcCA itt=__ 333 West Seventh Avenue " 'zt Anchorage, Alaska 99501-3572 of + GOVERNOR BILL WALKER g Main: 907.279.1433 L glib Fax: 907.276.7542 www.aogcc.alaska.gov Luke Keller Drilling Engineer Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste. 1400 Anchorage,AK 99503 Re: Milne Point Field,Kuparuk River Oil Pool,MPU K-44 Hilcorp Alaska, LLC Permit to Drill Number: 216-038 Surface Location: 3744' FSL, 2020' FEL, Sec. 3, T12N, R11E,UM,AK Bottomhole Location: 1281' FSL, 992' FWL, Sec. 34, T13N, R11E,UM,AK Dear Mr. Keller: Enclosed is the approved application for permit to drill the above referenced development well. 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. 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 an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy P.J7 /74-44vt Foerster Chair DATED this `7 day of March,2016. „, r.17. IA STATE OF ALASKA .-F E3 6 2016 Alilik OIL AND GAS CONSERVATION COMMWJN PERMIT TO DRILL 20 AAC 25.005 1 a.Type of Work: lb.Proposed Well Class: Exploratory-Gas ❑ Service- WAG ❑ Service-Disp ❑ 1 c.Specify if well is proposed for: Drill 0. Lateral ❑ Stratigraphic Test ❑ Development-Oil Q• Service- Winj ❑ Single Zone 0 • Coalbed Gas ❑ Gas Hydrates ❑ Redril❑ Reentry❑ Exploratory-Oil ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket 0. Single Well ❑ 11.Well Name and Number: Hilcorp Alaska,LLC , Bond No. 022035244 ' MPU K-44 ' 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 3800 Centerpoint Drive,Suite 1400,Anchorage,AK 99503 MD: 10,652' ' TVD: 9,250' • Milne Point Unit r 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Kuparuk River Oil Pool Surface: 3744'FSL,2020'FEL,Sec 3,T12N,R11 E,UM,AK ' (SHL)ADL375133/(TPH/BHL)ADL028232 b Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 1050'FSL,706'FWL,Sec 34,T13N,R11 E,UM,AK N/A 4/12/2016 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 1281'FSL,992'FWL,Sec 34,T13N,R11 E,UM,AK , ADL375133-2560/ADL028232-2560 . 250' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL(ft): 63.1 15.Distance to Nearest Well Open Surface: x-584535 y- 6005880 Zone-4 - GL Elevation above MSL(ft): 29.3 to Same Pool: 1975'to K-13 16.Deviated wells: Kickoff depth: 800 feet • 17.Maximum Potential Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 38 degrees . Downhole: 4596 - Surface: 3474 • 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 20" 78.6# A-53 Weld 110' Surf Surf 110' 110' G:.v e'!L -.5 c_hr-4.... 0``,tz 13-1/2" 10-3/4" 45.5# L-80 BTC 5,847' Surf Surf 5,847' 4,963' Stg 1 -1912.7 ft3/Stg 2-1457 ft3 9-7/8" 7-5/8" 29.7# L-80 BTC 10,652' Surf Surf 10,652' 9,250' 865 ft3 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 ❑ 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 the procedure approved herein will not be deviated from without prior written approval. Contact Email Printed Name Luke Keller Title Drilling Engineer / Signature Phone 777-8395 Date �/A /Z��tj Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: I(0, 0'.? 50-OM-0215(03--C;10-(p Date: -Ck-`Lerequirements. 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: 1211L- Other: Samples req'd: Yes No[ Mud log req'd:Yes❑ NoV it, �Cf t:) ,) (Jur 1 H2S measures: Yes No❑ Directional svy req'd:Yes['No❑ ��` 4h v��c ' r Spacing exception req'd: Yes❑ No[� Inclination-only svy req'd:Yes❑ No[✓' Post initial injection MIT req'd:Yes❑ No APPROVED BY Approved by: / 9-tM4.--- COMMISSIONER THE COMMISSION Date: 3•49-1 ?33/41(/ C 3_3-16 7' ®TR /� J i ,ifSubmit Form and Form 10-401(Revised 11/2015) �v{i f'L(�A\2 mOnthS from at�p oval(20 AAC 25.0 (g)) Attachments in Duplicate L-GJ/(r • Luke Keller • Hilcorp Alaska, LLC Drilling Engineer • P.O. Box 244027 Anchorage,AK 99524-4027 Tel 907 777 8395 Email Ikeller@hilcorp.com Hilcorp Alaska,LLC February 26th, 2016 Commissioner RECEIVED EC E IVE 1"r! Alaska Oil & Gas Conservation Commission M V 333 W. 7th Avenue FEB 2 6 2016 Anchorage, Alaska 99501 AOGCC Re: MPU K-44 Dear Commissioner, MPU K-44 is a grassroots producer targeting the Kuparuk C& B7 sands. The directional plan is a slant well with the kick off point at 800' MD/TVD. Maximum hole angle is 38 degrees. After penetrating the Kalubik, hole angle will be reduced to 10 deg. After drilling the Kuparuk, an exploratory tail will penetrate the Sag River sands and reach total depth into the top of the Shublik shale. Drilling operations are expected to commence approximately April 12th, 2016. Doyon Rig #14 will be used to drill and complete the wellbore. After reviewing the LWD logs obtained while drilling the well, a determination will be made whether or not fracture stimulation will be required at a later date. The base plan, however, is to NOT fracture stimulate the well. A CBL will be run on the 7-5/8" production casing in the event a fracture stimulation is required at a later date. If you have any questions, please don't hesitate to contact myself at 777-8395 or Paul Mazzolini at 777-8369. Sincerely, 2/— / (//-v- Luke Keller Drilling Engineer Hilcorp Alaska, LLC Page 1 of 1 • • 1111 Hilcorp Alaska, LLC Milne Point Unit (MPU) K-44 Drilling Program Version 1 Feb 23rd, 2016 • Milne Point 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 Casing Inspection 4 6.0 Internal Reporting Requirements 5 7.0 Planned Wellbore Schematic 6 8.0 Drilling/Completion Summary 7 9.0 Mandatory Regulatory Compliance/Notifications 8 10.0 R/U and Preparatory Work 10 11.0 N/U 21-1/4"2M Diverter System 10 12.0 Drill 13-1/2"Hole Section 13 13.0 Run 10-3/4"Surface Casing 18 14.0 Cement 10-3/4"Surface Casing 22 15.0 BOP N/U and Test 27 16.0 Drill 9-7/8"Hole Section 28 17.0 Run 7-5/8"Production Casing 32 18.0 Cement 7-5/8"Production Casing 34 19.0 Perforate&Run Production Tubing. 37 20.0 Contingency String• 38 21.0 Wellbore with contingency 4-1/2"liner installed 39 22.0 Diverter Schematic 40 23.0 BOP Schematic 41 24.0 Wellhead Schematic 42 25.0 Days Vs Depth 43 26.0 Formation Description 44 27.0 Anticipated Drilling Hazards 45 28.0 Doyon 14 Rig Layout 48 29.0 FIT Procedure 49 30.0 Choke Manifold Schematic 50 31.0 Casing Design Information 51 32.0 9-7/8"Hole Section MASP 52 33.0 Spider Plot(NAD 27)(Governmental Sections) 53 34.0 Surface Plat(As Built)(NAD 27) 54 35.0 Offset MW vs TVD Chart 55 36.0 Drill Pipe Information 5"19.5#S-135 DS-50 56 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 1.0 Well Summary Well MPU K-44 Pad Milne Point"K"Pad Planned Completion Type ESP on 2-7/8"Production tubing Target Reservoir(s) Kuparuk Planned Well TD, MD/TVD 10,652' MD/9,250' TVD PBTD, MD/TVD 10,500' MD/9,100' TVD Surface Location(Governmental) 3,744' FSL,2,020' FEL, Sec 3, T12N, R11E, UM, AK Surface Location(NAD 27—Zone 4) X=584,535.02,Y=6,005,880.17 Surface Location(NAD 83) Top of Productive Horizon (Governmental) 1050'FSL, 706' FWL, Sec 34, T13N,R11E,UM,AK TPH Location(NAD 27) X=587759.5, Y=6008503.1 TPH Location(NAD 83) BHL(Governmental) 1281'FSL, 992' FWL, Sec 34, T13N, R11E, UM,AK BHL(NAD 27) X=588042.5, Y=6008737.5 BHL(NAD 83) AFE Number 1610551 AFE Drilling Days AFE Completion Days AFE Drilling Amount AFE Completion Amount AFE Facility Amount Maximum Anticipated Pressure (Surface) 3474 psig Maximum Anticipated Pressure (Downhole/Reservoir) 4596 psig 5" 19.5# S-135 DS-50 (Weatherford Rental) Work String 4" 14# S-135 HT-38 (Weatherford Rental—Contingency) KB Elevation above MSL: 33.8 ft+29.3 ft= 63.1 ft GL Elevation above MSL: 29.3 ft BOP Equipment 13-5/8"x 5M Annular, (3)ea 13-5/8"x 5M Rams Page 2 Version 1 Feb, 2016 Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 2.0 Management of Change Information Hilcorp Alaska, LLC HiIcotp Changes to Approved Permit to Drill Date: 2-8-2015 Subject: Changes to Approved Permit to Drill for MPU K-44 File#: MPU K-44 Drilling and Completion Program Any modifications to MPU K-44 Drilling&Completion Program will be documented and approved below. Changes to an approved APD will be approved by the AQGCC. Sec Page Date Procedure Change Approved Approved BY BY Approval_ Drilling Manager Date Prepared: Drilling Engineer Date Page 3 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling 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 20" 19.25" - - 78.6 A-53 Weld _ 13-1/2" 10-3/4" 9.95" 9.875" 11.75" 45.5 L-80 BTC 5210 2480 1040 9-7/8" 7-5/8" 6.875" 6.75" 8.5" 29.7 L-80 BTC 6890 4790 683 *6-3/4" 4.5" 3.920" 3.795" 4.93" 13.5# L-80 VAM 9,020 8,540 307 HTTC *Note: Contingency string highlighted in yellow. 4.0 Drill Pipe Information: Hole OD ID (in) TJ ID TJ OD Wt Grade Conn M/U M/U Tension Section (in) (in) (in) (#/ft) (Min) (Max) (k-lbs) Surface& 5" 4.276" 3.25" 6.625" 19.5 S-135 GPDS50 36,100 43,100 560k Intermediate *6-3/4" 4" 3.34" 2.5625" 4.875" 14 S-135 HT-38 12,200 17,700 649,200 *Note: Contingency drill pipe workstring highlighted in yellow 5.0 Casing Inspection All casing will be new, PSL 1 (100%mill inspected, 10%inspection upon delivery to TSA in Fairbanks). Page 4 Version 1 Feb,2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 6.0 Internal Reporting Requirements 6.1 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. • Enter the MD and TVD depths EVERY DAY whether you are making hole or not. 6.2 Afternoon Updates • Submit a short operations update each work day to pmazzolini@hilcorp.com, lkeller@hilcorp.com and cdinger@hilcorp.com 6.3 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. 6.4 EHS Incident Reporting • Health and safety:Notify EHS field coordinator. • Environmental: Drilling Environmental coordinator • Notify Drlg Manager&Drlg Engineer • Submit Hilcorp Incident report to contacts above within 24 hrs 6.5 Casing Tally • Send final"As-Run"Casing tally to lkeller@hilcorp.com and cdinger@hilcorp.com 6.6 Casing and Cmt report • Send casing and cement report for each string of casing to lkeller@hilcorp.com and cdinger@hilcorp.com 6.7 Hilcorp Milne Point Contact List: Title Name Work Phone Cell Phone Email Drilling Manager Paul Mazzolini 907.777.8369 907.317.1275 pmazzolini@hilcorp.com Drilling Engineer Luke Keller 907.777.8395 832.247.3785 lkeller@hilcorp.com Geologist Kevin Eastham 907.777.8316 907.360.5087 keastham@hilcorp.com Reservoir Engineer Vanessa Hughes 907.777.8445 vhughes@hilcorp.com Drlg Environmental Coord Julieanna Orczewska 907.777.8444 907.715.7060 iorczewska@hilcorp.com EHS Manager Carl Jones 907.777.8327 907.382.4336 caiones@hilcorp.com EHS Field Coordinator Jimmy Watson 907.777.8450 907.744.7376 iiwatson@hilcorp.com Drilling Tech Cody Dinger 907.777.8389 509.768.8196 cdinger@hilcorp.com Page 5 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 7.0 Planned Wellbore Schematic t� CAS NG DETAIL :0. ;•ii •b, :r► Size T'pe W: Grace Ccnn. IC Top (Pv1C) ' t.i. 20" Conductor 78.6 4-53 Weld 19.25' Surf 110' r. 10-3/4' Surf.Csg 45.5 L-80 ETC 9.95" Surf 5,847' s, Prod 7-5/8' Casing 29.7 L-80 BTC 6.875" Surf 10,652' ;e "TUBING DETAIL . 2-7/8" Tubing 6.4 L-80 EUE 2.441' Surf 8,200' `ii. .o; IF Ai; 1E'u`1ELP'1 DETAIL ; :r, No lten- Top MD Btrn MD _ 0_, 1 Tubing Hanger 32' 2 Stage Tool—ES Cementer 1,900` 3 3 ESP Production Packer 2,000' Ar, 4 X Nipple 7,600' . . •w 5 ESP asst'. 7,900' .F. 6 ESP Cable Tie In 8,100' e .p; p. .r, :3-3 4- TQC. 7,530'MID Formation Tops&Thickness / .c. Fcrn-aaon TopT,'C BtmTIC Thickness 1 Permafrost surf 1.693 1.693 2 SchraderEluff 4.540 4.773 233 '+I + 4 3 Colville Mudstones 4.773 6.126 1.353 r s 4 HRZ 6.126 6.605 479 79� 5 Kalubik Gamma h Marker 6.605 192 7. elle •r 6 Kuparuk. C 6.797 7,063 266 • >r 7 Kuparuk C 7.053 7.363 300 • p.m °, 8 KLparuk A 7.363 7,413 50 ®' 6 11 M"ilu each 7.413 8.263 850 of„ 12 Jurassic 8.263 9,038 775 z. s; 13 Sag Riser 9.038 9.213 175 t 1,v C hublik 9.213 r„ -- - Xu,). Planned Perforations • ex P,c. Formation Top MC Etm,MC Top TIC Stn-7.0 f .. *' Sk4 1 KLparLk 8.421 8.460 7.063 7.093 °,01:40......:...;.- 2 Kuparuk E7 Sand 8.483 8.503 7.113 7.133 : :s r +:'L �:8`Shoe PBTD=10,500'MD l 9,100'TVD /9,25O'TD=10,652'MD/9 50'TVD Max Deviation_38D Updated by LEK 2/23/16 Page 6 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 8.0 Drilling / Completion Summary MPU K-44 is a grassroots producer targeting the Kuparuk C&B7 sands. The directional plan is a slant well with the kick off point at 800' MD/TVD. Maximum hole angle is 38 degrees. After penetrating the Kalubik,hole angle will be reduced to 10 deg. After drilling the Kuparuk, an exploratory tail will penetrate the Sag River sands and reach total depth into the top of the Shublik shale. Drilling operations are expected to commence approximately April 12th,2016. Doyyon Rjg will be used to drill and complete the wellbore. After reviewing the LWD logs obtained while drilling the well, a determination will be made whether or not fracture stimulation will be required at a later date. The base plan, however, is to NOT fracture stimulate the well. A CBL will be run on the 7-5/8" production casing in the event a fracture stimulation is required at a later date. Surface casing will be run to 5,847' MD/4,963' TVD and cemented to surface via a 2-stage primary cement job. 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 operations will be hauled to the Milne Point G&I facility located on"B"pad. General sequence of operations: 1. MOB Doyon#14 to well site 2. N/U 21-1/4" conductor and 16" diverter line. 3. Drill 13-1/2"hole to TD of surface hole section. Run and cmt 10-3/4" surface casing. 4. N/D diverter,N/U &test 13-5/8"x 5M BOP. 5. Drill 9-7/8"hole to TD. 6. Run and cmt 7-5/8"production casing. 7. Perforate well, run ESP completion. 8. N/D BOP,N/U temp abandonment cap, RDMO. Reservoir Evaluation Plan: 1. Surface hole: No mud logging. On Site geologist. LWD: GR+Res 2. Production Hole: No mud logging. On site geologist. LWD: GR+Res+Den Neu 3. Cased Hole Logs: CBL over 7-5/8"production casing Page 7 Version 1 Feb, 2016 S • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 9.0 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 MPU K-44. Ensure to provide AOGCC 24 hrs notice prior to testing BOPs. • The initial test of BOP equipment will be to 250/4000 psi & subsequent tests of the BOP equipment will be to 250/4000 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: • There are no variance requests at this time. Page 8 Version 1 Feb, 2016 41 Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company Summary of BOP Equipment and Test Requirements Hole Section Equipment Test Pressure(psi) 13-1/2" • 21-1/4"2M diverter(Hydril MSP)w/16"diverter line Function Test Only • 13-5/8"x 5M Hydril"GK"Annular BOP • 13-5/8"x 5M Hydril MPL Double Gate Initial Test:250/4000 o Blind ram in btm cavity (Annular 2500 psi) • Mud cross w/3"x 5M side outlets 9-7/8" • 13-5/8"x 5M Hydril MPL Single ram • 3-1/8"x 5M Choke Line Subsequent Tests: • 3-1/8"x 5M Kill line 250/4000 • 3-1/8"x 5M Choke manifold (Annular 2500 psi) • Standpipe,floor valves,etc Primary closing unit: NL Shaffer, 6 station, 3000 psi, 180 gallon accumulator unit. Primary closing hydraulics is provided by an electrically driven triplex pump. Secondary back-up is a 30:1 air pump, and emergency pressure is provided by bottled nitrogen. The remote closing operator panels are located in the doghouse and on accumulator unit. Required AOGCC Notifications: • Well control event(BOPS utilized to shut in the well to control influx of formation fluids). • 24 hours notice prior to spud. • 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(2 ala, sg ka. ov Guy Schwartz/Petroleum Engineer/(0): 907-793-1226/(C): 907-301-4533 /Email:guy.schwartz@alaska.gov Victoria Loepp/Petroleum Engineer/(0): 907-793-1247/Email: Victoria.loepp(cr�,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 Feb,2016 i Milne Point Unit K-44 111 Drilling Procedure Hilcorp Energy Company 10.0 R/U and Preparatory Work 10.1 K-44 will utilize an existing conductor on K-pad. Ensure to review attached surface plat and make sure rig is over appropriate well. 10.2 Dig out and set impermeable cellar inside existing culvert. 10.3 Ensure PTD and drilling program are posted in the rig office and on the rig floor. 10.4 Install Seaboard slip-on 16-3/4" 3M "A" section. Ensure to orient wellhead so that tree will line up with flowline later. 10.5 Insure (2) 3"threaded nipples are installed on opposite sides of the conductor with ball valves on each nipple. These will be used to take cement returns to the cellar during the surface cmt job, and also to wash out the diverter and hanger in preparation for running the pack-off. 10.6 Level pad and ensure enough room for layout of rig footprint and R/U. 10.7 MIRU Doyon#14. 10.8 Mud loggers WILL NOT be used on either hole section. 10.9 Mix spud mud for 13-1/2" surface hole section. Keep mud cool. 10.10 Set test plug in wellhead prior to N/U diverter to ensure nothing can fall into the wellbore if it is accidentally dropped. 10.11 Install 6" liners in mud pumps. • Continental EMSCO FB-1600 mud pumps are rated at 4665 psi, 462 gpm @ 110 spm @ 95% volumetric efficiency. 11.0 N/U 21-1/4" 2M Diverter System 11.1 N/U 21-1/4"Hydril MSP 2M diverter System (Diverter Schematic at Sec 20 at back of program). • N/U 16-3/4" 3M x 21-1/4" 2M DSA 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). • Diverter line must be 75 ft from nearest ignition source • Place drip berm at the end of diverter line. Page 10 Version 1 Feb, 2016 • Milne Point Unit K-44 111 Drilling Procedure Hiicorp Energy Company 11.2 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. 11.3 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. 11.4 Set 15.375"ID wear bushing in wellhead. 11.5 Pad Drawing PK;L+J,NG E? 16in Chi f rter Line DJO rl: II" r r r 1. u■ •_,r o _S i :` ' v MMNIE1 III Ell Wad V. ■W Page 11 Version 1 Feb, 2016 • ill Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 11.6 Rig & Diverter Orientation: IP:IG LAUNCHER I 6 1 n 1) 1 V ert e f ,..._ in _ 1 TEST SERP.PA.T.DP ,..i, g. 4 111 4 I I a- I I 0” ,IZI iiIII - [j INI 1-OE ' III III ;- 7.-.4-1 Page 12 Version 1 Feb, 2016 • 11110 Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 12.0 Drill 13-1/2" Hole Section 12.1 P/U 13-1/2" 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. • Be sure to run a UBHO sub so that wireline orientation is possible if necessary. • Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. • Workstring will be 5" 19.5# S-135. • Run a solid float in the surface hole section. 12.2 13-1/2" BHA (GR+ Res LWD and PWD planned in surface hole): COMPONENT DATA Item Description Serial Number OD ID Gauge Weight Top Length Cumulative (in) (in) (in) tibpf) Connection (ft) Length lft) Tricone B.000 3.500 13-500 138.52 P 6-5/B"REG 1.30 1.30 2 8"SperryDrill Lobe 4t5-5.3 stg 8.000 5-000 121-08 COMM 32-00 33.30 Stabilizer -�_ 13-375 _--- 3 8"Integral Blade Stabilizer 8.000 2.813 12.125 150.12 B 6-518"REG 6-50 39.80 4 8"DM Collar(Directional) 8.000 3.500 147-40 B 6-518"REG 9.20 49.00 ® 8"DGR Collar(Gamma) 1.920 1111111 142-70 B 6-5+8"REG MEM 55.15 6 8"EWR-P4 Collar(Resistivity) 8.000 2-000 151.00 B 6-518"REG 12.10 67.25 7 8"PWD Collar(Pressure) 8.000 MI 143-40 B 6-518"REG 4.43 71-68 8 8"HCIM Collar(Processor) ® 8.000 1-920 149-90 B 6-518"REG 4.72 76.40 9 8"TM HOC (Mud Pulse Telemetry' 8 00 3.500 _ 145.20 B 6-5+8"REG 10.00 86.40 10 8"Orienting Sub UBHO' 8.000 2.813 150.12 B 6-5±8"REG 3.00 89.40 11 8" NonMag Flex Collar 8.000 2.813 150.12 B 6-518"REG 30.00 119.40 12 8'NonMag Flex Collar 8.000 2.813 150.12 B 6-5+8"REG 30-00 149.40 13 8"NonMag Flex Collar 8.000 2.813 150.12 B 6-5,'8"REG 30.00 179.40 14 8'Bottle Neck X-Over Sub 11111111111111 8.000 3.000 147-22 B 4-112"IF 2.50 181.90 15 3 its 5"X 3"HWDP#49.3-4.5"I F 5.000 3.000 49.30 90.00 271.90 16 Weatherford 6.25"Combo Jar 6.250 2.250 ® 91.01 B 4-1/2"IF 30.00 301.90 17 5 its 5"X 3"H'.n.DP#49.3-4.5"IF 5.000 3.000 49-30 150.00 451.90 18 5"X 4.276"-t9.5 6-518'X 2-3`4" 5.000 4.276 ® 22.60 30.00 481.90 4.5"IF Drill.i+- 481.9 Page 13 Version 1 Feb, 2016 • 111 Milne Point Unit K-44 II Drilling Procedure Hilcorp Energy Company 12.3 Primary Bit: IIIIIIIIIIIIIIIMII S:yle Sheet Fail 13 1/2" VM-3 BAKER (342,9 mm) HUGHES ■ Boss Stabilization SpsternThese unique integrated stabilizers provide near six-point contact with the borehole wall for unequaled stability and cutting structure protection. ■ Center Jet(C)A fourth jet is positioned in the center of the bit and utilized to prevent bit balling and the associated reduction in penetration rate. I Clean Sweep Hydraulics(CS2)Biased nozzle configuration directs fluid toward areas where bit balling occurs.The Clean Sweep high-velocity core strikes heel and adjacent heel area on the backside of the cone. • STL Hardfacing Increased bit life and reliability with a precisely controlled application of patented,highly wear-resistant STLTM hardfacing that covers the entire shirttail and leg areas for superior protection from the potentially damaging effects of hole-wall contact -77 Reference Photo: 13-112 in.(342.9mm)VM-3 Product Specifications .•w IADC_ 137 Bearing Seal Package: Journal.t Metal " TA Cutting Structure: ( ' Inner Row Super Thick ilin ° , Heel RowHi-Metallic11 Hughes Chnstensen Gauge Row Super Gauge Icnve:a grove ti-tEirog cost Gauge Trimmers N A Tooth Hardfacing: Endura II OD Hardfacing: STL , , Nozzle.Type: Standard (": Center Jet Display: FK.or 1'K t,'! )110 Makeup Torque: 28.0-32.0 klbf-ft(38.0-43.3 kNnil Connection: 6-5'8 REG API 1-1,mbes Chnstenaen 14wets your esnEirwgcost Approx.Shipping Weight: 255 lb( 115.7 kg) Reference Part Number. H2I81800 Operating Recommendations*: Weinht On Bit: 22.5-55klb(10-24 In orkdaNl Rotation Speed: For High Speed Rotary.Motor Applications Page 14 Version 1 Feb, 2016 Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 12.4 5" Workstring, HWDP, and Jars will come from Weatherford. 12.5 Begin drilling out from 20" conductor at reduced flow rates to avoid broaching the conductor. 12.6 Drill 13-1/2" hole section to 5,847' MD/4,963' TVD. Confirm this setting depth with the geologist and Drilling Engineer while drilling the well. • Monitor the area around the conductor for any signs of broaching. If broaching is observed, Stop drilling (or circulating)immediately notify Drilling Engineer. • Hold a safety meeting with rig crews to discuss: • Conductor broaching ops and mitigation procedures. • Well control procedures and rig evacuation. • Flow rates, hole cleaning, mud cooling, etc. • Pump sweeps and maintain mud rheology to ensure effective hole cleaning. • Keep mud as cool as possible to keep from washing out permafrost. • Pump at 700-800 gpm. Ensure shaker screens are set up to handle this flowrate. • Keep swab and surge pressures low when tripping. • Make wiper trips if necessary. • Ensure shale shakers are functioning properly. Check for holes in screens on connections. • Adjust MW as necessary to maintain hole stability. • Ensure TD of the hole section will cover up the Schrader Bluff sands + 100' MD. / • Take MWD surveys every stand drilled (95' intervals). • Be prepared for GAS HYDRATES at the base of the permafrost and as deep as 3000'. Previous wells have all experienced hydrates on"K"pad. Do not stop to circulate out gas hydrates—this will only exacerbate the problem by washing out additional permafrost. Attempt to control drill (150 fph MAX) through the zone completely and efficiently to mitigate the hydrate issue. Flowrates can also be reduced to prevent mud from belching over the bell nipple. Consider adding mud products such as Lecithin to allow the gas to break out. • Have the flowline jets hooked up and be ready to jet the flowline at the first sign of clay balling. • Do not stop to circulate on wiper trips with bit across a slide interval, especially not in an area where DLS is>4. • Do not slide for 100' MD above the base of the permafrost or 100' below the base. We want to leave this transition as undisturbed as possible. Page 15 Version 1 Feb, 2016 i Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 12.7 13-1/2"hole mud program summary: • Density: 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. By 2000' MD,the MW should be 9.5 ppg in anticipation of gas hydrates. • PVT System: An electronic PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, and Toolpusher office. • Hydrates: Hydrates have been encountered on almost all "K"Pad wells drilled to date. At 2200-2300' and again at 2600' to 2900'. MW should be at 9.5 ppg prior to drilling past 2000' MD. • Rheology: Aquagel and Barazan D+ should be used to maintain rheology. Begin system with a 75 YP but reduce this once clays are encountered. Maintain a minimum 25 YP at all times while drilling. Be prepared to increase the YP if hole cleaning becomes an issue. • Fluid Loss: DEXTRID and/or PAC L should be used for filtrate control. Background LCM (10 ppb total) BARACARBs/BAROFIBRE/STEELSEALs can be used in the system while drilling the surface interval to prevent losses and strengthen the wellbore. • Wellbore and mud stability: Additions of CON DET PRE-MIX/DRIL N SLIDE are recommended to reduce the incidence of bit balling and shaker blinding when penetrating the high-clay content sections of the Sagavanirktok and the heavy oil sections of the UGNU 4A. Maintain the pH in the 8.5 —9.0 range with caustic soda. Daily additions of ALDACIDE G/X-CIDE 207 MUST be made to control bacterial action. • Casing Running: Reduce system YP with DESCO as required for running casing as allowed (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP <20 (check with the cementers to see what YP value they have targeted). System Type: 8.8—9.5 ppg Pre-Hydrated Aquagel/freshwater spud mud Properties:�\ Depths / Density Viscosity Plastic Viscosity Yield Point API FL Temp pH 110-5847' t\ 8.8 9.5 75-175 20-40 25-45 <10 <70°F 8.5 9.0 Page 16 Version 1 Feb, 2016 O Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company System Formulation: Gel + FW spud mud Product Concentration Fresh Water 0.905 bbl soda Ash 0.5 ppb AQUAGEL 15 -20 ppb caustic soda 0.1 ppb(8.5—9.0 pH) BARAZAN D+ as needed BAROID 41 as required for 8.8—9.5 ppg PAC-L/DEXTRID LT if required for<10 FL ALDACIDE G 0.1 ppb 12.8 At TD;pump sweeps, CBU, and pull a wiper trip back to the 20" conductor shoe. 12.9 Should backreaming be necessary to get out of the hole: • Prior to initiating backreaming, ensure at least 3 —4 B/U have been circulated to get hole as clean as possible. • Pump at full drill rate (600—700 gpm), and maximize rotation. • Pull slowly, 5 — 10 ft/minute. • Monitor well for any signs of packing off or losses. • Have the flowline jets hooked up and be ready to jet the flowline at the first sign of clay balling. • If flow rates are reduced to combat overloaded shakers/flowline, stop back reaming until parameters are restored. 12.10 TOH with the drilling assy, handle BHA as appropriate. 12.11 No open hole logging program planned. Page 17 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 12.7 13-1/2"hole mud program summary: • Density: 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. By 2000' MD, the MW should be 9.5 ppg in anticipation of gas hydrates. • PVT System: An electronic PVT will be used throughout the drilling and completion phase. Remote monitoring stations will be available at the driller's console, Co Man office, and Toolpusher office. • Hydrates: Hydrates have been encountered on almost all"K"Pad wells drilled to date. At 2200-2300' and again at 2600' to 2900'. MW should be at 9.5 ppg prior to drilling past 2000' MD. • Rheology: Aquagel and Barazan D+ should be used to maintain rheology. Begin system with a 75 YP but reduce this once clays are encountered. Maintain a minimum 25 YP at all times while drilling. Be prepared to increase the YP if hole cleaning becomes an issue. • Fluid Loss: DEXTRID and/or PAC L should be used for filtrate control. Background LCM (10 ppb total) BARACARBs/BAROFIBRE/STEELSEALs can be used in the system while drilling the surface interval to prevent losses and strengthen the wellbore. • Wellbore and mud stability: Additions of CON DET PRE-MIX/DRIL N SLIDE are recommended to reduce the incidence of bit balling and shaker blinding when penetrating the high-clay content sections of the Sagavanirktok and the heavy oil sections of the UGNU 4A. Maintain the pH in the 8.5 —9.0 range with caustic soda. Daily additions of ALDACIDE G/X-CIDE 207 MUST be made to control bacterial action. • Casing Running: Reduce system YP with DESCO as required for running casing as allowed (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP <20 (check with the cementers to see what YP value they have targeted). System Type: 8.8-9.5 ppg Pre-Hydrated Aquagel/freshwater spud mud Properties: Depths Density Viscosity Plastic Viscosity Yield Point API FL Temp pH 110-5847' 8.8-9.5 75-175 20-40 25-45 <10 <70°F 8.5-9.0 Page 16 Version 1 Feb,2016 Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company System Formulation: Gel + FW spud mud Product Concentration Fresh Water 0.905 bbl soda Ash 0.5 ppb AQUAGEL 15 -20 ppb caustic soda 0.1 ppb(8.5 —9.0 pH) BARAZAN D+ as needed BAROID 41 as required for 8.8—9.5 ppg PAC-L/DEXTRID LT if required for<10 FL ALDACIDE G 0.1 ppb 12.8 At TD; pump sweeps, CBU, and pull a wiper trip back to the 20" conductor shoe. 12.9 Should backreaming be necessary to get out of the hole: • Prior to initiatingbackreaming, ensure at least 3 —4 B/U have been circulated to get hole as g� clean as possible. • Pump at full drill rate (600—700 gpm), and maximize rotation. • Pull slowly, 5 — 10 ft/minute. • Monitor well for any signs of packing off or losses. • Have the flowline jets hooked up and be ready to jet the flowline at the first sign of clay balling. • If flow rates are reduced to combat overloaded shakers/flowline, stop back reaming until parameters are restored. 12.10 TOH with the drilling assy, handle BHA as appropriate. 12.11 No open hole logging program planned. f Page 17 Version 1 Feb, 2016 S r Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 13.0 Run 10-3/4" Surface Casing 13.1 R/U and pull 15.375"wear bushing. 13.2 Make a dummy run with the 10-3/4" casing hanger. 13.3 R/U Weatherford 10-3/4" casing running equipment. • Ensure 10-3/4" BTC x DS50 XO on rig floor and M/U to FOSV. • Use "API Modified"thread compound. Dope pin end only w/paint brush. • Consider R/U of CRT if hole conditions require. • R/U a fill up tool to fill casing while running if the CRT is not used. • Ensure all casing has been drifted to 9.794" 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. 13.4 P/U shoe joint, visually verify no debris inside joint. 13.5 Continue M/U &thread locking shoe track assy consisting of: • (1) Shoe joint w/float shoe bucked on (thread locked). Install (2) centralizers on shoe joint over stop collars 10' from each end. • (1) Joint with float collar bucked on pin end &thread locked. Install (1) centralizer mid tube over a stop collar. • Ensure bypass baffle is correctly installed on top of float collar. Bypass Baffle This end up. 010110114 • (1) Joint with Halliburton bypass baffle adapter bucked on pin&threadlocked. Install (1) centralizer mid tube over a stop collar. • Ensure proper operation of float equipment while picking up. • Ensure to record S/N's of all float equipment and stage tool components. Page 18 Version 1 Feb, 2016 is II Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 13.6 Float equipment and Stage tool equipment drawings: ••A Overall Length Type H ES Cementer B At Part Nlo. 11141.1D After Dsillout f C SO No i Max.Tool OD it MEW I D Hitcorp ES-II Running Order AiiiiIsi '� Closing Sleeve Opens-g Seat ID 1 No.Shear Pans _ISI E Closing Seat ID "`D' . opec►in Sleeve " �� ISI No.Shear Pins Plug Set C { ES-Il Cementer - ES Cementer Part No. -...—p—...- ' Depth f SO No. Closing Plug Vhf i tionaviso IIII Bax--e Adapter(if used) OD ' Shut Off Plug [--III"j ID A Opening Plug Dept. � O© _ 1 OD J Baffle Adapter .�.. iIIj' By pass or Shut-off Baffle )I By-Pass Plug i it Depth � Shut-off Plug , . , , Float Collar Depth By Pass Baffle *1111r- IOD Float Collar 1 —Float Shue Depth \\..„, .... Bypass Plug 8 �. I ( (it used) I Hole TD ""--, (--1 Float Shoe "Reference Casing g OD Sales Manual Section 5 Page 19 Version 1 Feb, 2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 13.7 Continue running 10-3/4" surface casing • Fill casing while running using fill up line on rig floor. • Install (1) centralizer every other joint for the first 15 joints. • Utilize a collar clamp until weight is sufficient to keep slips set properly. • M/U connections to the base of the triangle stamped on the pin end. Note M/U torque values required to achieve this position. Estimated torque to reach base of triangle: 10,750 ft-lbs. • 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. • Break circulation prior to reaching the base of the permafrost if casing run indicates poor hole conditions. • Any packing off while running casing should be treated as a major problem. It is preferable to POH with casing and condition hole than to risk not getting cmt returns to surface. 13.8 Install the Halliburton Type H ES-II Stage tool so that it is positioned at 1900' MD/ 1848' TVD. This will position the stage collar comfortably below the permafrost. • Install centralizers over couplings on 3 joints below and above stage tool. • Do not place tongs on ES cementer,this can cause damage to the tool. • Ensure tool is pinned with 6 opening shear pins. There are 6 holes, the tool is normally sent with only 4 pins installed. This will allow the tool to open at 3300 psi. 10-3/4" 45.5#L-80 BTC Make Up Torques: Casing OD Est Torque To Reach Triangle Base 10-3/4" 10,750 ft-lbs 13.9 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 13.10 Slow in and out of slips. 13.11 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. 13.12 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. 13.13 Have emergency slips ready to go in the event we cannot land the hanger. Page 20 Version 1 Feb,2016 • • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company tt� Tenaris Casing and Tubing Performance Data Choose pipe size,wag thickness and steel grade to view AR connection options and performance data. Size ' Wall ' Grade • Connection ' Unit Pipe Body Data GEOMETRY ` Nominal OD 10.750 in Wall Thickness 0.400 in API Drift Diameter 9.794 in Nominal Weight 45.50 bsl t Nominal ID 9.950 in Alternate Drift Diameter 9.875 in Plain End Weight 44.26 gtstft Nominal Cross Section 13.006 sq in PERFORMANCE Steel Grade L80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 Psi Body Yield Strength 1,040,000 pts Internal Yield Pressure 5,210 psi Collapse Pressure 2,470 psi • Connection Data GEOMETRY Regular OD 11.750 in Threads Per Inch 5 Make-Up Thread Turns 1 PERFORMANCE Steel Grade 1.80 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Joint Strength 1,063,000 lbs Internal Pressure 5,210 psi Resistance TenarisHydril Premium Connections Print I Contact Us Ver 8.6 13.14 R/U circulating equipment and circulate B/U. Reduce YP to <20 to help ensure success of cement job. Ensure adequate amounts of cold M/U water are available to achieve this. Elevate hanger slightly above hang off point while circulating to avoid plugging the flutes. 13.15 After circulating, lower string and land hanger in wellhead again. Page 21 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 14.0 Cement 10-3/4" Surface Casing 14.1 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. Ensure vac trucks are on standby and ready to assist. • Which pump will be utilized for displacement, and how fluid will be fed to displacement pump. • Ensure adequate amounts of water for mix fluid is heated and available in the water tanks. • Positions and expectations of personnel involved with the cmt operation. • Review test reports and ensure pump times are acceptable. • Conduct visual inspection of all iron used to route slurry to rig floor. 14.2 Document efficiency of all possible displacement pumps prior to cement job. 14.3 Flush through cement pump and treating iron from pump to rig floor to the shakers. This will help ensure any debris left in the cmt pump or treating iron will not be pumped downhole. 14.4 R/U cmt head (if not already done so). Ensure top and bottom plugs have been loaded correctly. 14.5 Pump 5 bbls 10.5 ppg tuned spacer. Test surface cmt lines. 14.6 Pump remaining 55 bbls 10.5 ppg tuned spacer. 14.7 Drop bottom plug (flexible bypass plug). Mix and pump cmt per below calculations for the 1st stage. 14.8 Cement volume based on annular volume + 30% open hole excess. Job will consist of lead & tail, TOC brought to stage tool. Estimated Total Cement Volume: i sY Si 1 C�r�0� JJ Section: r 13-1/2" OH x 10-3/4" Casing (5347'- 1900') x .0648 bpf x 1.3 = 290 bbls 1628 ft3 annulus: Total LEAD: 290 bbls 1628 ft3 3 7t s,z 13-1/2" OH x 10-3/4" Casing (5847'- 5347') x .0648 bpf x 1.3 = 42 bbls 235.8 ft3 annulus: 10-3/4" Shoe track: 90 x .0962 bpf = 8.7 bbls 48.9 ft3 Total TAIL: 50.7 bbls 284.7 ft3 uz Page 22 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company Cement Slurry Design (both 1st and 2"d stage cement jobs): Lead Slurry Tail Slurry System ArcticCEM TM System SwiftCEM TM System Density 10.7 lb/gal 15.8 lb/gal Yield 4.298 ft3/sk / 1.16 ft3/sk .% Mixed 21.13 gal/sk 5.04 gal/sk Water 14.9 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. 14.10 After pumping cement, drop top plug (Shutoff plug) and displace cement with spud mud out of mud pits. 14.11 Ensure rig pump is used to displace cmt. Displacement calcs have proved to be very accurate using 0.101 bps for pump output. To operate the stage tool hydraulically, the plug must be bumped. 14.12 Displacement calculation: 5750' x .0962 bpf= 553.1 bbls total (330.4 bbl mud+ 80 bbl water+ 142.7 bbl mud) The 80 bbls of water must be left across stage tool to ensure proper operation once opened. 14.13 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. 14.14 If plug is not bumped at calculated strokes, double check volumes and calculations. Overdisplace by no more than 10 bbls before consulting with drilling engineer. 14.15 If plug is not bumped consult with drilling engineer. Ensure the free fall stage tool opening plug is available if needed. This is the back-up option to open the stage tool if the plugs are not bumped. 14.16 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. Page 23 Version 1 Feb, 2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 14.17 Increase pressure to 3,300 psi to open circulating ports in stage collar. Slightly higher pressure may be necessary if TOC is above the stage tool. CBU and record any spacer or cement returns to surface. Circulate until YP <20 again in preparation for the 211d stage of the cement job. 14.18 Be prepared for cement returns to surface. Dump cmt returns in the cellar or open the shaker bypass line to the cuttings tank. Have sacks of sugar available and vac trucks ready to assist. Ensure to flush out any rig components used to route cmt. Page 24 Version 1 Feb,2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company Second Stage: 14.19 Prepare for the 2nd stage as necessary. Hold another pre job meeting if crew change has occurred. 14.20 Load ES cementer closing plug in cmt head. 14.21 Pump 5 bbls 10.5 ppg tuned spacer. Test surface cmt lines. 14.22 Pump remaining 55 bbls 10.5 ppg tuned spacer. 14.23 Mix and pump cmt per below recipe for the 2nd stage. 14.24 Cement volume based on annular volume+200% open hole excess. Job will consist of lead& tail, TOC brought to surface. However cmt will continue to be pumped until clean spacer is observed at surface. Estimated Total Cement Volume: Section: Calculation: Vol(EMS) Vol(ft3) 20" Conductor x 10-3/4" (110') x .24 bpf x 1 = 26.4 bbls 148.2 ft3 casing annulus: 13-1/2" OH x 10-3/4" Casing (1400'- 110')x .0648 bpf x 2 = 168 bbls 943 ft3 annulus: Total LEAD: 194.4 bbls 1092 ft3 63 sc 13-1/2" OH x 10-3/4" Casing (1900'- 1400') x .0648 bpf x 2 = 65 bbls 365 ft3 annulus: Total TAIL: 65 bbls 365 ft3 g<< s, 14.25 Continue pumping lead until uncontaminated spacer is seen at surface, then switch to tail. 14.26 After pumping cement, drop ES Cementer closing plug and displace cement with spud mud out of mud pits. 14.27 Displacement calculation: 1900' x .0962 bpf= 183 bbls mud it U Page 25 Version 1 Feb, 2016 0 MoK44 DilnerillinPg Procedure !Mary COY 14.28 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. 14.29 Decide ahead of time what will be done with cmt returns once they are at surface. We should get back approx. 150 bbls of cmt slurry. 14.30 Land closing plug on stage collar and pressure up to 1000— 1500 psi to ensure stage tool closes. Follow instructions of Halliburton personnel. Bleed off pressure and check to ensure stage tool has closed. Back out and L/D landing joint. Flush out wellhead with FW. 14.31 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. 14.32 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 and cdinger@hilcorp.com This will be included with the EOW documentation'that goes to the AOGCC. Page 26 Version 1 Feb,2016 J • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 15.0 BOP N/U and Test 15.1 N/D the diverter&N/U 11" 5M tubing spool. 15.2 N/U 13-5/8" x 5M BOP as follows: • BOP configuration from Top down: 13-5/8"x 5M annular/ 13-5/8" x 5M Double gate / 13- 5/8"x 5M mud cross/ 13-5/8" Single gate • Double ram should be dressed with 2-7/8" x 5" VBRs in top cavity, blind ram in btm cavity. • Single ram should be dressed with 5" Fixed rams • N/U bell nipple, install flowline. • Install (1) manual valve & (1) HCR valve on kill side of mud cross. (manual valve closest to mud cross). • Install (1) manual valve on choke side of mud cross. Install an HCR outside of the manual valve. 15.3 Run 5" BOP test assy, land out test plug (if not installed previously). • Test BOP to 250/4000 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. � �'r • We will need to test on the following sizes: '� 5" (for 5" DP workstring) 15.4 R/D BOP test assy. 15.5 Dump and clean mud pits, send spud mud to G&I pad for injection. 15.6 Mix 10.0 ppg Baradrill-N fluid for production hole. 15.7 Set 10" ID wearbushing in wellhead. 15.8 Rack back as much 5" DP in derrick as possible to be used while drilling the hole section. 15.9 Keep 6" liners in mud pumps. Page 27 Version 1 Feb,2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 16.0 Drill 9-7/8" Hole Section 16.1 P/U 9-7/8" directional BHA. • 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 MWD is R/U and operational. • Have DD run hydraulics calculations on site to ensure optimum nozzle sizing. Hydraulics calculations and recommended TFA is attached below. • Workstring will be 5" 19.5# S-135. • Install ported float in the BHA. 16.2 9-7/8" Mud Motor Directional Assy (Includes triple combo LWD, PWD): COMPONENT DATA Item �{ I ID 'Gauge Weight Top Length Cumulative i I, tin) to t1bpt3 Connection (ft) Length t 1 PDC 6.750 2.750 9.875 101.71 P 4-112"REG 1.00 1.00 2 7"SperryDrill Lobe 718-6.0 stg 7.000 4.952 93.13 B4-112"IF 27.40 28.40 Stabilizer 9.625 -- 3 Integral Blade 6.750 2.813 9.625 100.77 B 4-112"IF 6.00 34.40 4 6-314"DM Collar(Directional) 6.750 3.925 103.40 B4-112"IF 9.20 43.60 5 6-314'DGR(Gamma) 6.750 1.920 97.80 B 4-112"IF 8.25 51.85 6 6 314"ELVR-P4 Collar(Resistivity) 6.750 2000 104.30 B 4-112"IF 12.10 63.95 7 6-3.4'PWD(Pressure) 6.750 1.920 96.30 LIMO 4.40 MEM 8 6 314"HCIM Collar(Processor) 6.750 1.920 _ 101.70 B 4-112"IF 4.97 73.32 K. 6 314"ALD Collar(Density) 6.750 1.920 9.625 104.30 B4-1/2"IF 14.54 87.86 Stabilizer 9.625 10 6 3/4"CTN Collar(Neutron) 6.750 1.905 102.30 110111= 11.84 99.71 11 6-314"TM Collar(Mud Pulse 6.750 3.250 103.60 B 4-112"IF 10.00 109.71 Teleme ) MI 6 14"NM Float SubIIIIIIIII 6.750 2.00 111.71 13 6 3.14"Non Mag Flex Collar 6.750 2.813 100.78 B 4-112"IF 30.00 IMI 6 314"Non Mag Flex Collar IIIIIIIIIIII 6.750 EMI= 100.78 11:1=1111 30.00 15 6 314"Non Ma;Flex Collar 6.750 2.813 100.78 B 4-112"IF 30.00 201.71 ari 3 jts x 5'X 3"HWDP#49.3-4.51F IMIIIIIIIIIIIII 5.000 3.000 MI 49.30 11111111111 90.00 291.71 17 Weatherford 6 1/4"Combo Jar 6.250 2.250 91.01 B 4-112"IF 30.00 321.71 ini 5 jts x 5"X 3"HWDP#49.3-4.51 F 5.000 3.000 MI 49.30 IIIIIII 150.00 5"X4.276"-19.5#6-518"X2-3.4" 19 5.000 4.276 22.60 30.00 501.71 4.51F Drills!.- " *' g 501.71 Page 28 Version 1 Feb, 2016 S II Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 16.3 Primary Bit: - -I- ' ,k--.. RIATiONAL COLWELL vAitco Reed Hycalog 9 7/8" Motor Bit Recommendation BIT SLZE and TYPE APPLICATION Bit Pricing I INTERVAL New Purchase 9 7/8" SK616M-C1D Shoe to TD $56,700 Rental Price per Well $27,000 9 718" SK616M-CIG Backup bit LIN or DBR Charge $27,000 9 7/8" SK616M-C1D HELIOS frerarrn.trukrstatt arera-z re. rA x:;,rk f jek#11Si rf*II 7 kr 4 ' 44- tit, yiktx,,,w tiiiit* Ai' ., *WO ,, 111110‘ '''' lik ltf 4 ,a.. ij Pk!! 9 7/8" SK616M-CID PROS: 6 Blades—Straight Layout Reduces surge and swab while tripping 7 Interchangeable Nozzles Dedicated Hydraulics for cleaning 16mm Helios Impact Cutters Most durable cutters in the industry 4"Enoc•thSteerTm Tapered Gauge Pads Increases DLS on RSS SmoothTorqueT" PDC Dome Topped Controls Depth of Cut for Predictable Torque Torque Control Components set at RSS and reduction of stick/slip to improve Offset Steering Unit control 22.2in2 Junk Slot Area Minimizes bit balling and improves tripping TSP Gauge Extremely durable and Smooth drilling Connection 6-5/8" API Reg. Pin M422 IADC Code Make Up Torque 47,5K Ft-lbs 0.99 feet Make up length Max WOB 44K 3.00" Shank Bore Min WOB 5K 8.00" Shank Diameter Bit Nozzle Pressure Drop 350-1,000 PSI Page 29 Version 1 Feb, 2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 16.4 9-7/8"hole section mud program summary: • Density: 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. • Solids Concentration: It is imperative that the solids concentration be kept low while drilling the production hole section. Keep the shaker screen size optimized and fluid running to near the end of the shakers. It is okay if the shakers run slightly wet to ensure we are running the finest screens possible. • Run the centrifuge continuously while drilling the production hole,this will help with solids removal. • MD Totco 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. System Type: 10.0— 10.5 ppg KC1 Inhibited WBM Properties: Depths / �ns ' Plastic Viscosity Yield Point LGS MBT HPHT pH 5847— / 10.0— \ 15-25 15-20 <6% <20 <11.0 9-10 10,652 10.5 ) ppg System ormulation: Baradrill-N Product Concentration Water 0.94 bbl KCL 22 ppb Barazan D Plus 1.25 ppb(as req'd for YP) PAC L 1.0 ppb Dextrid LT 3.0 ppb Barotrol Plus 5.0 ppb BDF-515 4.0 ppb Caustic Soda 0.2 ppb Baroid 41 As req'd for MW Aldacide G 0.25 ppb 16.5 TIH w/9-7/8" directional assy to stage tool. 16.6 Note depth TOC tagged on AM report. Drill out stage tool as follows: • Do not exceed 75 rev/min rotation speed. A good range is 40 to 75 rpm. • Drilling with minimal WOB is recommended. Approx 2-5 k is enough. • Apply weight and allow it to drill off before applying more. Page 30 Version 1 Feb, 2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company • After drilling out, chase any remaining debris to bottom with the drill bit. 16.7 TIH to TOC above the baffle adapter. Note depth TOC tagged on morning report. 6,3/1" 16.8 R/U and test casing to/2700 psi/30 min; Ensure to record volume/pressure and plot on FIT graph. AOGCC reg is 50% of burst= 5210/2 =—2605 psi. Test pressure for the well is 2700 psi. 16.9 Drill out shoe track and 20' of new formation. 16.10 CBU and condition mud for FIT. i z. f 16.11 Conduct FIT to 12_5 ppg EMW. kY — 16.12 Drill 9-7/8"hole section to section TD per Geologist and Drilling Engineer. 03_ _16 • Pump at 650-700 gpm. • Ensure shaker screens are set up to handle this flowrate. Ensure shakers are running slightly wet to maximize solids removal efficiency. Check for holes in screens on every connection. • Pump water or other low vis sweeps to aid in hole cleaning. • Keep swab and surge pressures low when tripping. • Make wiper trips if necessary. • Take MWD surveys every stand drld. Surveys can be taken more frequently if deemed necessary. • Good drilling and tripping practices are vital for avoidance of differential sticking. Make every effort to keep the drill string moving whenever possible and avoid stopping with the BHA across the sand for any extended period of time. 16.13 At TD; pump low vis sweeps, CBU at least 3 times at maximum circulation and rotation, and pull a wiper trip back to the 10-3/4" shoe. If backreaming is necessary: • Circulate at full drill rate (600—650 gpm). • Rotate at maximum rpm that can be sustained. • Limit pulling speed to 5 — 10 min/std(slip to slip time, not including connections). • If backreaming operations are commenced, continue backreaming to the shoe and circ at least a b/u once at the shoe. 16.14 TOH with the drilling assy, L/D BHA and DP on TOH. 16.15 No open hole wire line logs are planned for the production hole section. Page 31 Version 1 Feb, 2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 17.0 Run 7-5/8" Production Casing, 7s �. �-- . s 17.1 R/U 7-5/8" casing running equipment. 3'o o s� • Ensure 7-5/8"BTC x NC-50 crossover is on rig floor and M/U to FOSV. • 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. • R/U CRT if available. 17.2 M/U&threadlock shoe track assy consisting of: • (1) Float shoe joint w/float shoe bucked on. Install (2)hinged bow spring centralizers over a stop ring at 10' from each end. • (1) Baker locked joint. Install (1) hinged bow spring centralizer mid tube over a stop ring. • (1) Float collar joint w/float collar bucked on pin end. Install (1) hinged bow spring centralizer mid tube over a stop ring. • Ensure proper operation of float shoe and float collar. 17.3 Run 7-5/8" 29.7# L-80 BTC casing. • Fill casing while running using CRT or fill up line. • Use "API Modified"thread compound. Dope pin end only w/paint brush. • Utilize a collar clamp until weight is sufficient to keep slips set properly. • Install centralizers over couplings on every other joint to 7,800' MD. No centralizers required above that. 17.4 Watch displacement carefully and avoid surging the hole. Slow down running speed if necessary. 17.5 Slow in and out of slips. 17.6 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. 17.7 Lower string and land out in wellhead. Confirm measurements indicate the hanger has correctly landed out in the wellhead profile. 17.8 Have emergency slips ready to go in the event we cannot land the hanger. 17.9 R/U circulating equipment and circulate B/U. Reduce YP to <20 to help ensure success of cement job. Ensure adequate amounts of cold M/U water are available to achieve this. Elevate hanger slightly above hang off point while circulating to avoid plugging the flutes. Page 32 Version 1 Feb,2016 • • Milne Un DrillingPoint ProcedureitK-44 Hilcorp Energy Company 17.10 After circulating, lower string and land hanger in wellhead again. 7-5/8" BTC Estimated M/U torques Casing OD Estimated Torque to Reach Base of Triangle 7-5/8" 7,630 ft-lbs Casing and Tubing Performance Data PIPE BODY DATA GEOMETRY Outside Diameter 7.625 in Wall Thickness 0.375 in API Drift Diameter 6.750 in Nominal Weight 29.70 lbs/ft Nominal ID 6.875 in Alternative Drift Diameter n.a. Plain End Weight 29.06 lbs/ft Nominal cross section 8.541 in PERFORMANCE Steel Grade 180 Minimum Yield 80,000 psi Minimum Ultimate 95,000 psi Tension Yield 683,000 in Internal Pressure Yield 6,890 psi Collapse Pressure 4,790 psi Available Seamless Yes Available Welded No CONNECTION DATA TYPE:BTC GEOMETRY Coupling Reg OD 8.500 in Threads per in 5 Thread turns make up 1 PERFORMANCE Steel Grade L80 Coupling Min Yield 80,000 psi Coupling Min Ultimate 95,000 psi Joint Strength 721,000 lbs Internal Pressure Resistance 6,890 psi Page 33 Version 1 Feb, 2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 18.0 Cement 7-5/8" Production Casing 18.1 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. • 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. 18.2 R/U cmt head (if not already done so). Ensure top and bottom plugs are loaded correctly. 18.3 Pump 5 bbls 13.5 ppg spacer. Close low torque on plug dropping head, test surface cmt lines to 4000 psi. 18.4 Pump remaining 35 bbls 13.5 ppg spacer. 18.5 Drop bottom plug, Mix and pump slurry per below calculations: /S- Section: Calculation: Vol{ BLS) Vol(ft3) LEAD: 9-7/8" OH x 7-5/8" csg: No Lead Total Lead: TAIL: (10,652' —7,500')x.038 bpf x 1.25 = 150 bbls 842 ft3 9-7/8" OH x 7-5/8" csg: TAIL: 7-5/8" Shoe Track: 90' x .046 bpf= 4.1 23 ft3 Total Tail: 154 bbls 865 ft3 s x Page 34 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company Slurry Information « A h < i System Conventional Density 14.5 lb/gal Yield 1.397 ft3/sk Mixed Fluid 6.78 gal/sk Expected Thickening 5:00 HR:MIN Expected ISO/API Fluid Loss 13 mL in 30 min Additives Code Description Concentration G Cement 94 lb/sk WBWOB D110 Retarder 0.05 gal/sk VBWOC D046 Anti Foam 0.2%BWOB D202 Dispersant 1.5%BWOB D400 Gas Control Agent 0.8%BWOB D154 Extender 8.0%BWOB D174 Expanding Agent 1.5%BWOB 18.7 After pumping cement, drop top plug and displace cement with completion fluid. If it is not feasible to do this, use mud and a clean out trip will be made later. Use rig pumps for displacement. Ensure to have a good baseline measurement for pump displacement ahead of time. Displacement calcs: • 10,500' x .0459 bpf= 482 bbls. 18.8 Monitor returns closely while displacing cement. Adjust pump rate if necessary. 18.9 Do not overdisplace by more than t/2 shoe track volume. Total volume in shoe track is 4.1 bbls 18.10 There should be no cmt returns to surface. TOC is planned to be at 7500' MD. 18.11 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. • If this is the case, monitor the pressure on the casing and do not let it exceed 500 psi over the final pump pressure. Page 35 Version 1 Feb, 2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Enol 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 • Pump rate while displacing,note whether displacement by pump truck or mud pumps,weight&type of displacing fluid • Note if casing is reciprocated or rotated during the job • Calculated volume of displacement, actual displacement volume,whether plug bumped&bump pressure, do floats hold • Percent mud returns during job, if intermittent note timing during pumping of job. Final circulating pressure • Note if pre flush or cement returns at surface&volume • Note time cement in place • Note calculated top of cement • 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. 18.12 R/D cement equipment. Flush out wellhead with FW. 18.13 Back out and L/D landing joint, flush out wellhead with FW. 18.14 M/U pack-off running tool and pack-off to bottom of landing joint. Set casing hanger pack-off. Run in lock downs and inject plastic packing element. Test void to 250/4000 psi for 10 min. Lay down landing joint and pack-off running tool. 18.15 Contingency: If required, PU 7-5/8" cleanout assembly and RIH on 4"DP to PBTD. Circulate the wellbore clean with kill weight brine at maximum rate. Rotate and reciprocate workstring as needed. Reverse circulate if needed to clean wellbore. POOH and LDDP. fel;/1- Y / --Y-14 Page 36 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 19.0 Perforate & Run Production Tubing. 19.1 Spot e-line unit and rig up. RU e-line lubricator to dutch riser. Test to 250 psi low/ 1500 psi high. 19.2 Run a CBL across the Kuparuk interval and determine TOC near 7500' MD. 19.3 Perforate the Kuparuk sands B-7 sand with 6 SPF hollow carrier guns. If the B-7 sand is wet, the Kuparuk C sand will be perforated with 6 SPF hollow carrier guns. Exact depths will be from the cased hole reference log. 19.4 RD e-line. � 2 n" 19.5 R/U and run ESP assy with GLM and XN profile on 2-7/8"EUE-8rd L-80 tubing as per completion engineer. • An ESP packer will be run if the reservoir pressure is above 8.55 ppg as per CO 390A. Packer set depth will be approximately 2000' TVD. • Ensure appropriate well control crossovers on rig floor and ready. • Monitor displacement from wellbore while RIH. • Final set depth of the ESP will be determined after receiving the final directional survey. 19.6 Land tubing hanger. RILDS. LD landing joint. Note PU/SO weights on tubing tally along with number of bands/clamps run. Test hanger. 19.7 Circulate freeze protect down IA and allow freeze protect to U-tube down tubing. 19.8 Bullhead diesel (or dead crude) freeze protection down 10-3/4"x 7-5/8" annulus—(80 bbls). Leave well shut in, do not allow flowback to occur. 19.9 Install BPV and N/D BOP. 19.10 N/U tree adapter and tree. Conduct pressure tests of same to 500 psi low/4000 psi high. 19.11 Shut in well. Page 37 Version 1 Feb,2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 20.0 Contingency String: 20.1 Excessive MW may be required to stabilize the well after opening up the Kalubik and/or Kuparuk shales, they could be charged up from offset injectors in the area even though this well is in a different fault block from the bulk of the injection in the area. 20.2 If minimal or no ballooning is observed when bringing on/ shutting off mud pumps, consult with Anchorage drill team and determine feasibility of drilling ahead with planned well design. 20.3 If it is not feasible to drill ahead, set the 7-5/8" casing through the Kalubik and/or Kuparuk shale. 20.4 Adjust cement program so that TOC remains at 7,000' MD, with 7-5/8" shoe +/- 8,400' MD. 14'A 20.5 After bumping the plug, pressure up to 3500 psi and test casing for 30 min. Record volume pumped and volume bled back, note in wellez report. G0 ) 6 I%,I) 20.6 RID cmt equipment, install and test packoff, bullhead freeze protect down annulus. C 20.7 Install 2-7/8"x 5"VBR rams in both upper and lower BOP cavities. TEST BOP to 4000 psi/5 min. Annular to 2500 psi/5 min. 20.8 P/U 6-3/4" directional drilling assy, drill out float equipment and 20' new formation. Circ B/U and conduct FIT to 14 ppg EMW. 20.9 Drill 6-3/4"hole section to well TD. 20.10 Run and cmt 4-1/2"production liner. Cement coverage will be from liner shoe to TOL. 20.11 Well completion will remain the same. A proposed well schematic is shown on the next page. Page 38 Version 1 Feb, 2016 • • 1111 Milne Point Unit K-44 Drilling Procedure Hilcorp �_T.�— Energy Company 21.0 Wellbore ith contingency 4-1 2" liner installed CASING DETAIL ' / m. - Size Type vdt Crade Conn- ID E r f"�1r 1• ie 20" Conductor 78.6 A-53 Weld 19-25` Surf 110' A# 10-3/4' Surf.Csg 45.5 L-80 ETC 9.95" Sur` 5,847' t Prod 7 S18„ 29.7 L-83 E7C 6.875" Sur` 8,400' + Casing tVA Fat 44/2" Prod Liner 13.5 L-83 Hl-rC 3.958 8200' 10,652 TL.I5 I',G DETAIL ;s. :et 2-7.8" Tubing 6.4 L-80 EUE 2.441'° Surf 8,200' i. r JEWELRY DETAIL sir, ';ti item Tap NAD Etrr�FvtD CSC ♦ , 3 1 Tubing Hanger 32' •. .* 2 Stage Tool—ES Cementer 1,900' . 3 Production Pkr 2,000` . 4 X Nipple 7,630' 5 ESP assy 7,900' . 6 ESP Cable Tie In 8,103' 4 1.` 7 Linertop packer 8,200' 10-3.'4" TOC 7.00x'11/4@l13 / Formation Tops&Thickness ;y ",c Fcrlration Top TIC E"mTVC Thickness :_' C.:4 4" 4 1 Permafrost surf 1,593 1.693 II I 1 2 Schrader Bluff 4.540 4.773 233 .pt` 1 „ = 3 CalvilleMudstones 4.773 6.125 1;353 Alit — . 4 HRZ 6.126 6,605 479 F" — 6 5 Kalubik Gamma Marker 6.605 6.797 192 E Kuparuk D 5.797 7,063 265 7 Kuparuk C 7,053 363) 2.33 :A- ? vey .b 8 Kuparuk A 7,363 7.413 62 ''r .r.„;16. 11 Miluveach 7,413 6.253 853 7-5/8"Shoe Ae !« 12 Jurassic 8.263 9.038 775 ? t 13 Sag River 9.038 9.2 . 175 '� ga 17 Shublik 9.213 C 13 -._ D-7 ek sr 3' _. ;; Planned Perforations 'e 4.. No Fcrrra_ion Top MD Etm FviD Top TVD Btm TVD (a a—r=t„ 4-1,2-Shoe 1 Kuparuk 8.421 _ 8,462' 7:053 7.093 ..e.--.'b.: 2 Kuparuk. 87 Sand 8.483 8.503 7.113 7.133 PBTD=10.500'MD,:9,100'TVD TD=10,652'MD;9,250'TVD Max Deviation:38° Updated by LEK 2/23/16 Page 39 Version 1 Feb, 2016 I S Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 22.0 Diverter Schematic (...,irn reera / \ 1 1 0 Schaffer OJ V 21-114" V 2M Annular \ / tarn arsrR Q II grail n' 21-1/4"2h 4 i r—Rse -- 16"Full Opening Knife Valve /-1 Ill WIn ENMAI L1 Thr vu wwu 21-114"2M------ Diverter"T' 8,,,,,,____O n 16`Diverter Line MI an IN I[f HU R I i LB■l eV UAW Y 21-1/4'2M---._...._ Spacer Spool CD la ""1"ral 16-3+4"3M x----- 21-1/4"2M OSA lir iir iii dub, Seaboard Casinghead,S-22-AP-8 16"SOW x 16-3l4"3M; (2)ea 2-1i16"5M studded outlets 20"Casing Page 40 Version 1 Feb, 2016 • 0 Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 23.0 BOP Schematic / 1 \ I 6 0 Hydril Annular 13T;"x \\\ 5M (La as loacti (sr.. o . OD HyOM 14e x 5M 0 0Z. 7,, v K 0 ea, ,_, 0 — ,pU . — 0 Z-- 1 4)-17) I OD e 01:14- --- itio 1 1 III2 Mk ill pip 7,--3*x 5M HCR 11 • ,..„ 40i, 111111i1[ 1111 1[i'''1111 IIIII I "-----Choke Line ....—.-----------* I.Iv ..7. Kill Line . 3 x 5M Manual Gate Valve HydnI 13-W x 5•141 r_r____ 1 c 0 1 3 I 1 e C 0 1 1 : _ immilimme, 0 . m . , ----"------13-5/6'x 5M .Act ii, ono • . -----------11"x 5M ,oilik 1 "long mg=,11 I./ iiiik -11 --iir 61 10-3/4-OBL 0 Seal 2-1/16"x 5M I I at% 16-3/4"x 3M Casing Hanger ,. II!a 1 SMB-22 II ii 16 x 10-314 w/primary seal 2-1/16"x 5M 20"Casing 10-3.4"Casing Page 41 Version 1 Feb, 2016 III Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 24.0 Wellhead Schematic II - 4) -- - I 2-9/165M HOLD-DOV91 FLANGE 24.6 EST ADAPTER, ESP-2I.. TOADSTOOI. 13 514 % 2-9/76 5M 1■1 • 1 ® 1■1 1 g■ I ■_. 1151.1 memo HANGER - S-88-ESP 11 %2-7/8 1.11 II ,Y 1■1 17.2 ORD TOP X MIN EST API MOD STM S. 60.2 F/TAURUS PENETRATOR : Li® 'g! r ' : EST 43-217-0O MCI •� ■I♦► w�# -IA' 4; i■ .7 CASINO HANGER, SMB-22 1■!' , „ lip 2-7/76 5M 11 JS 7-5/6W/PRIMARY SEALEESST ' r�`. I ••f0 .117.44-fr ■1 Ierr 10-3/4 D .D jib iI � 2-1/16 5M _ ! _ 16-3/4 3M o:IIIs I � ,- I CASING HANGER SMI3-22 gi 'I '■1- I 0 21.6 78 x 10-3/6 a' EST W/PR 7ARY sEAL iiI1 I 1■ it ®77 111 ..*1 .1 .' Pia SWAGE ADAPTER. 20 SOW x 16 SUP ON PIN„\ 20 CASING •1 10-3/4 CASING 7-5/8 CAPIG 2-7/8 CASING Page 42 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 25.0 Days Vs Depth 0 ,i,\ 1 1 -L-48 Actual MRL-49 Actual -MPU 1-46 Actual -L-47 Actual 2000 K-44 4000 \\11\ 6000 1 i.v i i1\11:\ 8000 10000 \ \ 12000 14000 1 0 5 10 15 20 25 30 35 40 45 Days Page 43 Version 1 Feb,2016 111, II I Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 26.0 Formation Description . ....._... ...... RESERVOIR PRESSURE SS GEOLOGICAL CASING&OTHER ND ''' LITH PORE PRESSURE -------- DESCRIPTION DRILLING REL. INFO. Ali G... A '.7.7•- Heavy gravel 150-450 ft_ Be prepared to increase vise BS j y , I a , 10.5. ,,0 NOTE: See individual Well rewad* Gulansi ' :- immediately if heavy gravels are encountered. Maintain WI.r ,• . Ss Plantor specific.casing mice' ec..3 *,-.- • good vise through out surface hole. 0...... , i design,depths.sizes. I weights,grades and 1,000 ' "g '...7.• Unconsolidated coarse to medium sand and small j 1 ! connections. r.'.•,. gravel with minor siltstone. Also clay Interval. i I now 4 Base permafrost Be prepared for HYDRATE z000. GAS generated gas cut mud 2000 to 300D ss(Cascade 41.K-17.25,37, ' HYDRATES!! CUT 33,02,13,30 and 34.Also.1397 wells K-5,K-111 and K-21). Sagawintridok MUD! , 10.0 - 10.5 ppg 1 2320. if Predominantly clay to vl-3900with interbeds of sand.clays recommended for et-100' and slltstones wills occasional shows of coal. hyd-a es at K-Pad. , 3.000 K''nnt.' Continued interbeds of sand,clays and siltstories with UGNU I i occasional shows of coal. K-34.Ugnu Source Resistivity loo on Cascade shows shallow gas Water Well et ., 3?00". L,arcls ;-.A.e.1 C . IJ "..., Proposed 9-518" uxarfu: Series of coarsening upward sands which are made up of: (from top to bottom)coarse sand,fine sand. ' - casing setting depth - L silty shale. Better developed intervening shales as you - 3500 SS for Shallow '''"" A progress into Int L arid M itteepeff. .-A.B.Ci rt : aitt (covers hydrates) 000' .4Poss4rle hydrocarbon beating sands(Dili. / - , Y : and+1-4860 SS for .. Deep Set to cover . : Schrader Bluff Sands _ I "Da' N-Swers POSSIBLE SHALLOW GAS+/-4500 -_ , - 4700- 'ABC D (CASCADE#1) - E,F) • 0-3arxis Schrader Bluff Sands:Continued layered , 411 i-A,B,C. coarsening upward sands as above except more 4600- D E F. condensed. Possible hydrocarbon bearing 4800' Top of Seabee 5,000' Seabee(Colville)Interval: Predominantly interbedded siltstone and clay with beds of sand,shale and 85 3.0 ' is io.o 1,5 Ile occasional seams of coal. The Seabee is generally uneventful until reaching the HRZ. Expect good penetration rates '-100 tit). Seabee 2 6,000' ,97P., V Enter Kuparuk cautiously. 6350 Top HRZ. v HRZ: Highly Radioactive Zone. Very dark,thistle type 10.1/10.2 i vi-IOT shale.organic,good source rock. Tuff(benlonitic)zone essg. Ease HRZ possible at top of HRZ_ 9P9. "-100' Kakibik Shako: Marker Mk1-9 good log marker. Kalubik Gradually diminishing ROP. ... / ,.. Kuparuk Interval: 9.9 ppg EMW: ALTHOUGH NO WELLS ON K-PAD HAVE STUCK ''"1"' Shale The"0"Sn.4 e IS the top Kuparuk sediment and Is known ORIGINAL iif, ... PIPE IN THIS INTERVAL, ,, os the C. Rod" RESERVOIR 4.ii ' THIS ISA STUCK.PIPE 6950' Arr. row- PRESSURE-..,,, - INTERVAL ON 13,E,F and -IDO' SANDS C SANDS: Sandstone,shales upward. Oil bearing I : L Pads. I LCU target 7001' 1 LCU: Lower Cretaceous Unconformity ei 1011' '''• a (Li) B Sands: Also known as the laminated Zone begins i.. below LCU Fine to medium grain sands becoming more ., SANDS shaley with depth. Hydrocarbon bearing. Pinches out to .„ the north and thickens to the southeast.Top sand.B-7,is ' 4. 7200' target. Use controlled drilling rate in Kuparuk kr LVVD. IMIIIIIr Page 44 Version 1 Feb, 2016 • • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 27.0 Anticipated Drilling Hazards 13-1/2" Hole Section: Lost Circulation Ensure adequate amounts of LCM are available. Monitor fluid volumes to detect any early signs of lost circulation. For minor seepage losses, consider adding small amounts of calcium carbonate. Gas Hydrates Remember that hydrate gas behave differently from a gas sand. Additional fluid density will not prevent influx of gas hydrates. We do not want to drill through the hydrates with anything less than a 9.5 ppg MW however. Once a gas hydrate has been disturbed the gas will come out of the hole. Drill through the hydrate section efficiently—control ROP and avoid loading the hole with gas. Minimize gas belching by reducing flow rate if necessary. Minimize circulation time while drilling through the hydrate zone. Excessive circulation will accelerate formation thawing which can increase the amount of hydrates released into the wellbore. Keep the mud circulation temperature as cold as possible. Weigh mud with both a pressurized and non-pressurized mud scale. The non-pressurized scale will reflect the actual mud cut weight. Add 1.0—2.0 ppb DRILTREAT to the system to help thin the mud and release the gas. Isolate/dump contaminated fluid to remove hydrates from the system. Hole Cleaning: Maintain rheology of mud system. Sweep hole with high viscosity sweeps as necessary. Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. Monitor ECDs to determine if additional circulation time is necessary. In a highly deviated wellbore,pipe rotation is critical for effective hole cleaning. Rotate at maximum RPMs when CBU, and keep pipe moving to avoid washing out a particular section of the hole. Ensure to clean the hole with rotation after slide intervals. Do not out drill our ability to clean the hole. Anti-Collison: There are a number of adjacent wells in the vicinity. Take directional surveys every stand,take additional surveys if necessary. Continuously monitor proximity to offset wellbores and record any close approaches on AM report. Discuss offset wellbores with production foreman and consider shutting in adjacent wells if necessary. Monitor drilling parameters for signs of collision with another well. Wellbore stability (Permafrost, running sands and gravel, conductor broaching): Washouts in the permafrost can be severe if the string is left circulating across it for extended periods of time. Keep mud as cool as possible by taking on cold water and diluting often. High TOH and RIH speeds can aggravate fragile shale/coal formations due to the pressure variations btwn surge and swab. Bring the pumps on slowly after connections. Monitor conductor for any signs of broaching. Maintain mud parameters and increase MW to combat running sands and gravel formations. H2S: Treat every hole section as though it has the potential for H2S. No H2S events have been documented on drill wells on this pad. Page 45 Version 1 Feb, 2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 1. The AOGCC will be notified within 24 hours if H2S is encountered in excess of 20 ppm during drilling operations. 2. The rig will have fully functioning automatic H2S detection equipment meeting the requirements of 20 AAC 25.066. 3. In the event H2S is detected, wellwork will be suspended and personnel evacuated until a detailed mitigation procedure can be developed. Page 46 Version 1 Feb,2016 S Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 9-7/8" Hole Section: Hole Cleaning: Maintain rheology of mud system. Sweep hole with low-vis water sweeps. Ensure shakers are set up with appropriate screens to maximize solids removal efficiency. Run centrifuge continuously. Monitor ECDs to determine if additional circulation time is necessary. In a highly deviated wellbore, pipe rotation is critical for effective hole cleaning. Rotate at maximum RPMs when CBU, and keep pipe moving to avoid washing out a particular section of the wellbore. Ensure to clean the hole with rotation after slide intervals. Do not out drill our ability to clean the hole. Maintain circulation rate of> 500 gpm. Lost Circulation: Ensure adequate amounts of LCM are available. Monitor fluid volumes to detect any early signs of lost circulation. For minor seepage losses, consider adding small amounts of calcium carbonate. Faulting: There is at least(1) fault that will be crossed while drilling the well. There could be others and the throw of these faults is not well understood at this point in time. H2S: Treat every hole section as though it has the potential for H2S. No H2S events have been documented on drill wells on"K"pad. 1. The AOGCC will be notified within 24 hours if H2S is encountered in excess of 20 ppm during drilling operations. 2. The rig will have fully functioning automatic H2S detection equipment meeting the requirements of 20 AAC 25.066. 3. In the event H2S is detected, wellwork will be suspended and personnel evacuated until a detailed mitigation procedure can be developed. Abnormal Pressures and Temperatures: There are no abnormal pressures or temperatures expected while drilling this well. Page 47 Version 1 Feb,2016 • , Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 28.0 Doyon 14 Rig Layout 01 i) r N 1111E311 0 W 1i �i �i �h�,�i r ,1 00 4,41 4„. `i; d ti1,,,a V,,;,t1 0 ,ti 14 E (4J 4, ii 4q„,,,,ii sr t tiS i 9„,,,, �4 �J�t,ri Pt,i IAy i ..� V r , rv5 6 45f F O 'II� Pil M ..cRA=T . v_ DID \si,1 0 i g 1 a I OW. W in a� z ��,f,„ i}�rs4 o 011',",4 } 1.4 ',A4 p 3'�f i1411 r(i Ssi ii;,li to P1iVy Ch i CB o cn I Ti. 1. { Page 48 Version 1 Feb, 2016 410 Milne Point Unit K-44 Drilling Procedure Hileorp Energy Company 29.0 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 49 Version 1 Feb,2016 • . Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 30.0 Choke Manifold Schematic DJ <" < QFi tip, .,ts, _ � pc > M ZX z m 4...., — CO ta — . n 5" 0 = ,,;0 di , ... .,, .. N � wn � � N o o Z Z J rd 0 P -C� b = Fi W 3 3 a XII M Am I -'' I. 9, CT r) NM Ea—r ;IC) rT 0 0 3 lid Z y N .. mak PP IIIIICa dal A _re,tf .... iillt..! 0 erra r (D. } ,-. e m.m Nr 6 OIL NV _ INI A 9 a / it 0 8 o r CD ®r 0(9,, c Po CV P tn Page 50 Version 1 Feb,2016 • Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 31.0 Casing Design Information Calculation & Casing Design Factors Milne Point Unit DATE: 2-17-2016 WELL: MPU K-44 DESIGN BY:Luke Keller Design Criteria: Hole Size 9-7+8" Mud Density: 10.5 ppq Hole Size 6-3/4" Mud Density: 10.5 ppg Hole Size Mud Density: Drilling Mode MASP(9-718"): 3474 psi(see attached MASP determination&calculation) Production Mode MASP: 3692 psi(see attached MASP determination&calculation) Collapse Calculation: Section Calculation 1,2, 3 Max MW gradient external stress and the casing evacuated for the internal stress Casing Section Calculation/Specification 1 2 3 Casino OD 10-3/4" 7-5/8" 4-1/2" Top(MD) 0 0 8,200 Top(TVD) 0 0 6,840 Bottom (MD) 5,847 10.652 10.652 Bottom(TVD) 4,963 9.250 9,250 Length 5,847 10,652 2,452 Weight(ppf) 45.5 29.7 13.5 Grade L-80 L-80 L-80 Connection BTC BTC VAM HTTC', Weight wro Bouyancy Factor(lbs) 266.039 316,364 33.102 Tension at Top of Section(lbs) 266.039 316,364 33.102 Min strength Tension(1000 lbs) 1040 683 307 Worst Case Safety Factor(Tension) 3.91 2.16 ' 9.27 Collapse Pressure at bottom(Psi) 2,233 4.718 4,718 Collapse Resistance w/o tension(Psi) 2,480 4.790 8,540 Worst Case Safety Factor(Collapse) 1.11 1.02 = 1.81 MASP(psi) 3,474 3.692 3,692 Minimum Yield (psi) 5.210 6.890 9,020 Worst case safety factor(Burst) 1.50 1.87 2.44 Page 51 Version 1 Feb, 2016 • • II Milne Un DrillingPoint Procedure K-44 Hilcorp Energy Company 32.0 9-7/8" Hole Section MASP in Maximum Anticipated Surface Pressure Calculation 9-7/8"Hole Section Hilcorp MPU K-44 Milne Point MD TVD Planned Top: 5847 4963 Planned TD: 10652 9250 Anticipated Formations and Pressures: Formation TVD Est Pressure 041/Gas/Wet PPG Grad Top Kuparuk D Shale 6,797 3400 - 9.6 0.500 Top Kuparuk C Sand 7,063 3533 Oil 9.6 0500 Top Kuparuk A Sand 7,363 3683 Water 9.6 0.500 Top Miluveach 7,413 3708 - 9.6 0.500 Top Jurassic 8,263 4133 - 9.6 0.500 Top Sag River 9,038 4596 Oil 9.8 0.509 Top Shublik 9,213 4685 - 9.8 0.509 Offset Well Mud Densities Well Max Drlg MW Top(TVD) Bottom(TVD) Date K-05 10.1 4240 7194 1996 K-06 10.2 4400 7304 1996 K-13 10.5 3600 7300 1996 K-33 11.2 4961 9309 1997 K-30 10.3 4,925 7,306 1996 K-22 10.1 3,545 7,135 2005 Assumptions: 1. Fracture gradient at shoe is estimated at 0.8psi/ft based on field test data. 2. Maximum planned mud density for the 9-7/8"hole section is 10.5 ppg. 3. Calculations assume Sag River sand contains 100%gas(worst case). 4. Calculations assume worst case event is complete evacuation of wellbore to gas. ai,-t Fracture Pressure at)71.H shoe considering a full column of gas from shoe to surface: 4963(ft)x 0.8(psi/ft)= 3970 psi 3970(psi)-[0.1(psi/ft)*4,963(ft)]= 3474 psi Drilling Mode MASP MASP from pore pressure(wellbore completely evacuated to gas) ��__ 5 rv` 9038(ft)x 0.509(psi/ft)= 4596 psi 4596(psi)-(0.1(psi/ft)*9038(ft)]= 3692 psi Summary: \\� V 1. MASP while drilling 9-7/8"production hole is governed by fracture gradient at 10-3/4"shoe Page 52 Version 1 Feb, 2016 1110 , • 11 Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 33.0 Spider Plot (NAD 27) (Governmental Sections) -S:•,',..., 29 Sec 28 ; Sec 27 /{ J ADL028231 ADL028232 U013N011E r' Ms Q h / ♦ l Sec:32 ` res Se:: 33r Sec.34 1 E 4 4 r + N1Ph-44 BHL .i 1 fl " + N1Pk 44 TPH ,7 1 s vk. 1 4 + \` 0 1 1 1 4 MIL,NE POINT'UNI 1 ` + / _GENE 14 1_ I''\ ! r..— '-'r wr I i MPK-44 SHL r.1 sr -, ,�'`,11 ``` : r-. ::A E 4 Sec-- :rt.";• `r / Sec.3. , • ,.. Sec.2 .ti ''+"" I.:..FE r 1` f 1I ! r r' 1. / r 1 ti '''''... r . + Kt_.l \a 1 '.+. • I 1 R 1 y I 4 1 1' ADL375133 11,. U012N011E i `, ADL375132 Legend Sec.9 Sec.10 MPK-44_SHL Other Surface Holes(SHL MPK-44_TP1-1 • Other Bottom Holes(BHL) -+- MPK-44 BHL - - - Other Well Paths _ Oil and Gas Unit Boundary Page 53 Version 1 Feb, 2016 0 • II Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 34.0 Surface Plat (As Built) (NAD 27) i IN cm , 0 17:3 45 I MP E 30 ii ... . ,,, I 0 a ,.... , 1 . Illii I P 1118 PROJECT....,\ I • -• - \''‘...-..... U ,„ 6 4 g a 4- K-44 13* • 4 44P 2 , 25 a L •TO VICIKTY MAP N.T.1 33* *34 3/1* *311 III)1, 43m ,,S,''' OF '1.4, 4i,, _Ai ' K-PAO .. , .... '''''''-'V•-• - '' - -* •--7:'' allErice.„ RENAMED CONDUCTOR REVISION NOTE WELL MP K-44 9- AS-BuILT CONCuCTON 1 , y / 1' /Tirrioth . Bombert : — THS As-sui.T.comet4G Is A HEVE9..4 Of 111 ErS1ING CON-LIuCTD9 . '- ':- 0 PREVIOUS AS-OUILT DRAVONG FOR CONCUCTCR UP K-10 KNAMED CONYJCTOR I AS FOLLOWS' o.7ss Niisi 4IONS- ,.-s7Ng OD COND. NAME NEW COND. NAME 44(alASSSSI'S''' MP K-10 MP K-44 SURVEYOR'S CERTIFICATE HEREBY CF511-f THAI I AM PREIPERLY 12-: 2111FIED AND LICENSED NOTES 10 PRACTKE LAND SURVEYING NI THE STATE 07 ALASXA AND THAT 1. DATE OE SuRvEr. MARCH 21-25. 'RH T1115 AS-131.111./REPREsCHTS a$0FrvEr MACE BY POE GR.UrOXR NY DIRECT 2. REFERENCE FIELD EIOCH. MP90-04 (13-21) 51.1PERVISION ANC THAT ALL OMENSIONS APO OTHER DETAILS ME 3. ALASKA STATE PLO<COORDINATES ARE ZONE 4,41444.4, MAD 27 CORRECT AS OF MARCH 24.1920 4. MPU N-PAD SCALE ocrogi ES. 099920012 t.. HORIZONTAL COoRROL RASED CN L1SG5 MoNomENT'FOX'AND 1,011J MONUMENT C-1 GRAPHIC SCALE 6 ELEVATIONS ARE BP Mph CATJM (M 5 1) 0 75 150 303 7 YERTICk CON/140i IS RASED ON ERAIDEM CAP AT thIELL c-1. ELEVATON ® 16,06, ESTABLISHED $1 001040Ff &ASSOCATES (N FEET) 1 inch ..,150 It. LOCATED V8THIN PROTRACIED SEC. 3, T. 12 N,, R 11 E.1 UWIAT ME.RIPAN. ALASKA WELL A.S.P. PLANT GEO0E1IC GEOOEI1C CELLAR SECTION NO COORDINATES COORDINATES POSITION(DMS) POSITION(ELOD1 80X ELE v., OFFSETS Y..6,006,880.17 N 9,939 93 702533.570" 70 '.4259917' 3.744' FSL K-44 293 ..-- 584,535 02 E 5,109.88 ,14918'4,0 034" 149 31 . 11206. 2,020. FEL ........._,...._ i. , . JA.cois p404 nHikorp Alaska tom 0,,,,, " ' _.,............_ ci.oprz= AElliti 'MAL- VIII MILNE MINT K-PAD RENAMED CONDUCTOR ',JO 04 1"4154. WELL K-44 1 or 1 WI naw IT.0,1, la, Page 54 Version 1 Feb,2016 0 Milne Point Unit K-44 II Drilling Procedure Hilcorp Energy Company 35.0 Offset MW vs TVD Chart 0 -K-5(1996) 1 -K-6(1996) 1000 -K-13 (1996) -K-34(1996) lk)111111 -K-33 (1997) 2000 i 11 -K-30(1996) K-22(2005) 30CC • 1i1 4000 . \‘`),11" . oll i 1 6000 I . Vsiki 1 i 3 7000 1 S 1 l 8000 9000 , i 10000 , € l , 1 _ 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 Mud Weight(PPG) Page 55 Version 1 Feb, 2016 S • 111 Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company 36.0 Drill Pipe Information 5" 19.5# S-135 DS-50 Drill Pipe Configuration Pipe Body.©D ,n 5.000 80%Inspection Class / "� �\ Pipe Body Wail Thickness ,,,a 0.362 Nominal Weight Designation 19.50 j Pipe Body Grade 5-135 Drill Pipe Approximate Length :-.31.5 I Drill Pipe Length Range2 SrnoothEdg!e Height enil3132 Raised Connection G?DS50 Tool Joint SMYS <zcll 120.000 Tool Joint OD 6.625 Upset Type EU ` 1 Tool Joint ID 3.253 Max Upset OC CTE? In 5.125 1 Pin Tong 0 Friction Factor 11.0 , \ Box Tong r, '2 Noe.Torg scare-ray tncls.de Tarc'acirO. Drill Pipe Performance .--5,0 Drill-Pipe Length Range2 Performance of Drill Pipe with Pine Body at -, Best Estimates Nominal 80%Inspection Class wtwx,`tatr I e'er COMM) acne...Pale V a.caoaauce-m c'orakionaf Max Te-,sic Drill Pipe Adiusted Weighs t 24.1) 23.29 "ate + i Tarque to i e,; Fluid Displacement n;0.37 0.36 '161,1"...' iUT 43,100 Tension Gnl,' 0 560,800 Fluid Displacement E '-n.B 0088 0.0085 ccmurr_d�oaeru 39.600 410.51!0 Fluid Capacity ca n,0,:,;..m3:71.1:0.",2, .71 0.70 0"72 Fluid Capacity Erl_ni 0.0169 0.0167 0.0172 36,100 Tension Only0 560,800 (.\._,_ Mirxsnurn MUT Drift Size ,.-.3.125 c-i t, u �32,100 467.400 Noteon nein barrel Bawls 42 US gallons'. t,cle❑nil pee assembly.aures are:est estmases and may va-i dt:e to pipe body nil tole.arae,Ireerra Flas:t trains arrc otter tactors Connection Performance GPDS50 ( 6.625 ms OD X 3.250 on) ID ) 120,000 ss11 + Applied Make-up Tcrvsion al Sboultlea Tension al Connet,or Tool Joint Dimensions Torque Sesaratlan TrM nes ale; rnnl Balanced 00 tiro 6.435 V Maximum Make-up Torque 43,100 Tensile Limited 1,046,900 MUnmr:rn Tool Joel 00'or API 5.9m _ _ -__ Minimum Make-up Torque 36.100 1.202.5130 1.250.000 erem,,,m Ca.s ar,t 6 rive The maImJm make-Lb:D.Ql..2 tc1i to.,,. d*ter 5, -n L+Irmr.rn TOM Joan 4U' lee g•9;3 Ncte To maxenze can ci ,,,,...r,,,,...ral lets'.e.a td_1,14 3 .ib ICC ns;•snnuS be arced. !Tod Joint Torsional Strength �nusa 71,890 ITool Joint Tensile Strength -nsi 1,250.0000 Gocnterbore :Ir} Elevator Shoulder Information Elevator OD 3/32 Raised 6.812 t@- ;. SmoothEdge Height Nominal Tool Joint Worn to Bevel Worn to Min TJ OD for # 31'32 Raised OD Diameter API Premium Class Box OD In 6.812 6.625 6.063 5.930 V. Elevator Capacity iiixo 1,658,0000 1.440,200 823.600 685,600 " """ N EI.a r caconr.acry Cased assurred ESrator Sore.owear ratio m and cont, stress of 110 D1Dast - !Assumed Elevator Bore Diameter ,,v13.-519- . NI.,A raised eetatar a❑Irtreases Litrrilt,CO..a A trait aneetno Take-lip Largae. Pipe Body Slip Crushing Capacity Pipe Body Configuration( 5 cors OD 0.362 ta,,i Wall S-135) Nominal 80%inspection Class API Premium Class /i 166a Crushing Capacity 498.300 396.500 396.500 Assumed SlipLength €moi 16.5 Note tic Cnw ser Do orro�;start is catenate,won rrspt vnewcetaatr.evoi�ocesoiFlpe Fal m re tip Area Went Ce.7579 Se the sic kr�arta canet.e lean:acct:toes,Old a kr metre= 'a'h,'.'SOP manna S Oecrendect or ve gT deswr an]coratar,:aenC en7 ee Mien baring no-onors,&seas Transverse LOaC Facto-iKi 42 sips nil Me OD annWal onaber,and Mee%Cots caosiDenDe:a a taer.mieraxnsa S7yn too Pine Body Performance Pipe Body Configuration( 5 on) OD 0.362 tri) Wall S-135) Nominal 80%Inspection Class API Premium Class Pipe Tensile Strength .its,:'712.100 560.800 560,800 Pipe Torsional Strength ,it-it,,.., 74.103 58.100 58.100 TJ/PipeBody Torsional Ratio 0.97 1.24 1.24 V 80%Pipe Torsional Stength .ri-its,59,300 46.500 46.500 Burst 17.105 15,638 15,638 c a NOn ii'al Hum Collapse s: 15.672 14029 10.029 Saes at n.5!.RBA'per API Pipe OD sMr 5.000 4.855 4.855 Wall Thickness art 0.362 0.290 0.290 Nree Nominal Pipe ID ON 4276 4.276 4276 Cross Sectional Area of Pi Bod rr^2I De y 5275 4.154 4.154 Cross Sectional Area of OD amazr 19.635 18.514 18.514 Cross Sectional Area of ID t1,^2,14.36014.360 14.360 Section Modulus War 5"708 T4.476 4.476 K Y Polar Section Modulus (rr^3i 11.415 8.953 8.953 Grant Page 56 Version 1 Feb,2016 0 IIMimei i nPgo ipnrto Unit uK r-e4 4 Hilcorp Energy Company Operational Limits of Drill Pipe Connection GPDS50 Tool Joint 00 ,16.625 Toot Joint ID ,n.,3.250 TCCil Jo-t Specified M r,„r7 120.002. Yield StrengTh p,1, Pipe Body 1 80%Inspection Class Pipe Body OD ,,,I5 Wall Thickness ,n,0.362 Pipe Body Grade S-135 Combined Loading for Drill Pipe at Combined Loading for Drill Pipe at Maximum Make-up Torque= 43,100 iii-ii,,, Minimum Make-up Torque= 36,100 iriirbs, 0perationa Assembly 2 ipe Body Coe-rectal Max Operation Assembly Pm scar carmecaan Torque Max Tension Max Tension Tension I Torque Max Tension miuTere..ich Max Tension Or-Mal :Ibi: Cita i Ohm riiilas: Pam 4Its., ribs! 0 560.880 560,800 1,046.900 0 560 800 560.800 1,202,500 2,100 560,400 560,400 1,046.900 1,700 560,500 5511500 1,202,500 4,200 559,300 559,300 1.046.900 3 400 559 800 559.530 1202,50: 6.300 557.500 557,500 1,046.900 5,100 558.600 558.500 1.202,500 8,300 555.000 555.000 1.046.900 6.800 556 900 555.930 1.202,500 10,400 551,700 551,700 1.046.900 8.400 554.900 554.300 1,202,500 12.500 .547.600 547,600 1.046.900 10.100 552.200 552.230 1.202,500 14,600 ,542.800 542,800 1,046,900 11,800 -549,100 549,100 1,202,500 16,700 537.100 537,100 1.046.900 13.500 545 400 545.430 1202,500 18,800 530,600 530,600 " 1.046,900 15.200 541200 541.200 1.202,500 .20,800 523.600 523,600 1.046.900 16.900 536 500 536.530 1202.50: 22,900 515,400 ,515,400 1,046.900 18.600 531,300 531,300 1,202,500 25.000 506.200 506,200 1.046.900 20 300 525 400 025.430 1.202,50: , 27.100 496.100 496,100 1,046.900 22,000 519,000 519,000 1.202.500 29,200 484,800 484,800 1.046.900 23.700 512,000 512,000 1,202,500 ,31300 472,500 33,300 459.600 472,500 1,046,900 459,600 1,046.900 25,300 504,800 27 000 496 600 504,800 1,202,500 4;5.600 1.202,500 1 , 35,400 444,700 444,700 1,046,900 , 28,700 487,600 487.600 1,202,500 37.500 428.400 428,400 1.046.900 30.400 477.900' 477900 1.202,500 39,600 410,500 410,500 1,046.900 32,100 467,400 487,400 1,202,500 Opera"ipria,drilIng torque is limited by the Make-up Torque. Operational Coiling torque is limited by the Make-up Torque Connection Make-up Torque Range Make-up Torque Connection Max ,, , Tension its: !yin',NT 36.100 1,202,500 1 36.900 1,229,200 37,700 1,243,600 38.400 1,218,100 f." f,fff,f 39,200 1,189,000 tat 40,000 1,159,800 '40,800 1,130,700 41,500 1,105,200 42,300 1,076,100 Max MUT 43,100 1,046,900 Page 57 Version 1 Feb, 2016 0 • II Milne Point Unit K-44 Drilling Procedure Hilcorp Energy Company Connection Wear Table Connection GD0S50 Tool Joint OD ,,,16.625 Tool Joint ID ,,,,. 3.250 Tool Jothi Specified P.1 minium 120,000 Yield Strength tr-trii Connection Wear Tool Connection r Max Cc—ectiort Max Min MUT Connection Max New OD Joint OD Torsional 1 'MUT Te 511:- Tension Strength ,„_,,, 6.625 71,800 43,100 1,046,900 35,900 1.195.900 T 6.562 71,800 43.100 1,034,900 35.900 1208.700 -I— 6.499 71,800 43,100 1,022,600 35,900 1,222.400 ---- . 6.435 71,800 143,100 1,009,800 35,900 1.237.500 6.372 71,200 42,700 1,008,100 35,600 1,245.200 6.309 68,000 40,800 1,057,300 34,000 1.207.700 6.246 64,800 38,900 1,104,800 32,400 1,169.800 t 1 6.183 61,700 37,000 1,150,400 30.800 1.131,300 I I 6.12 58,600 ,35,200 1,190,900 29,300 1 096 100 , . ------ 6.056 55,500 33,300 1,232,300 27.800 1.060.800 Worn 00 5.993 52,600 31,500 1,227,200 26.300 1,024.600 5.93 49,600 29,800 1,187,100 24.800 987.900 Pipe Body Combined Loading Table(Torque-Tension) Pipe Body 80'.,".inspection Class Pipe Body OD .,-,, 5 *all Th ckness i iii. 0.362 Pipe Body Grade S-135 Pipe Body Torque 0 I Pipe Body Max ,, ,' Tension !'‘.}1 (114bs. Ob., 5.300 10 600 15 600 21.100 26 400 31.700 37.000 42.300 47.500 52.600 58 100 560,803 558.40C 551,40C 539.60C 522.500 49981'C 470.00C 432,400 384,500 323.100 234,30C 12 20C 0 Page 58 Version 1 Feb, 2016 ,, _ • IP Hilcorp Energy Company Milne Point M Pt K Pad Plan: MPK-44 MPK-44 Plan: MPK-44 wp2 Standard Proposal Report 12 February, 2016 '-,, i „' HALLIBURTON Sperry Drilling Services EI HALLIBURTOIV project: Milne Point FERENCE INFORMATION _-...-.-.-. Site: M Pt K Pad Co-ordinate(N/E)Reference:Well Plan:MPK-44,True North Bptlrry OrinbNy Well: Plan: MPK-44 Vertical(TVD)Reference:MPK-44 @ 63.00usft(Doyon 14) Measured Depth Reference: MPK-44 @ 63.00usft(Doyon 14) Wellbore: MPK-44 Calculation Method:Minimum Curvature ri t1ileor`► Plan: MPK-44 wp2 t WELL DETAILS: Plant:MPK-44 NAD 1927(NADCON CONUS) Alaska Zone 04 Ground Level: 29.30 +N/-S +EJ-W Northing Easting Latittude Longitude Slot - 0.00 0.00 6005880.17 584535.02 70°25'33.570 N 149°18'40.034 W -500— _ - _ - CASING DETAILS 0—_ TVD TVDSS MD Size Name _ 4963.00 4900.00 5847.51 10-3/4 10 3/4" 9250.00 9187.00 10652.12 7-5/8 7 5/8" 500— 500 1000— 1000 -1500— 1500 --Base permafrost 2000 2000— _ y00 _ 2 2500— 0 _ 300 3000— 3h00 000 3500— 0. C - O N - II 4000— o - 43 0 a 4500- - SchraderBluff- hyCP 0) - _ \> 00 35000— 60 f - 10 3/4" - h00 6 5500- 7 - F- _ A° 6000— _ --Top HRZ 1y00 6500— -Top Kalubik Gamma Marker $O00 ---Top Kuparuk D Shale - MPK-44 TKUC 7000--_ Top Kuparuk C Sand 6500 _ Top Kuparuk A Sand 7500— Top Miluveach - 9000 8000— 9500 :--- Top Jurassic 8500- - 10000 9000---- Top Sag River - - 10500 _ -Top Shublik- .r. 0652 - 7 5/8" I 9500- - tvIPK 44 wp2 10000 I- T I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I IIIIIIIIIIIIIIII -2000 -1500 -1000 -500 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 Vertical Section at 51.48° (1200 usft/in) • . HALLIBURTON Project: Milne Point WELL DETAILS:Plan MPK-44 Site: M Pt K Pad Ground Level: 29.30 Well: Plan:MPK-44 +N/-S +E/-W Northing Pasting Latitude Longitude Slot Wellbore: MPK-44 0.00 0.00 6005880.17 584535.02 70°25'33.570 N 149°18'40.034 W Plan: MPK-44 wp2 REFERENCE INFORMATION 3000— Co-ordinate(WE)Reference:Well Plan'MPK-44.Toot NOrth 44 Vertical(TVO)Reference:MPK-44 e 63.00ust(Doyon 14) 'f Measured Depth Reference:MPK-44 a 63.00ust(Doyon 14) -�k Calculation Method:Minimum Curvature 2750— MFK-04 TKUC o •�$ TD at 10652.12 iMita 2yF'6 2500— S\, Start 2230.89 hold at 8421.22 MD 2250— Start 8.19 hold at 8413.03 MD 2000— _ Start DLS 5.001110-17981 ao C - 10 3/4" a 1750— a O - a00 in {^I500— C - o * _ a° ir 1250— a _ 1000— k 750— - CASING DETAILS TVD TVDSS MD Size Name - Start 5685.71 hods 2162.73 MD 4963.00 4900.00 5847.51 10-3/4 103/4" • 500— 'I 9250.00 9187.00 10652.12 7-5/8 7 5/8" • Stun DLS 4.00 TFO 0.02 hh la ' _ _ Start 200.00 hold at 1628.00 MD " h 250— - ¢, T M Azimuths to True North Start Build 3.00 " I j Magnetic North:18.86' 41111 Magnetic Field 0— °$ Strength:57509.300T as Dip Angle:81.07° - t Date:2/2/2016 Model:BGGM2015 -250 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 -500 -250 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000 3250 3500 3750 4000 West(-)/East(+)(500 usft/in) • • Halliburton '1ALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Plan:MPK-44 Company: Hilcorp Energy Company TVD Reference: MPK-44 @ 63.00usft(Doyon 14) Project: Milne Point MD Reference: MPK-44 @ 63.00usft(Doyon 14) Site: M Pt K Pad North Reference: True Well: Plan:MPK-44 Survey Calculation Method: Minimum Curvature Wellbore: MPK-44 Design: MPK-44 wp2 Project Milne Point,ACT,MILNE POINT „.,,,,,, ',,,,,,,, i .'Iry >„, ,i Hu ,. ..s ,. i,ini 41, ,AAAA-AA 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 M Pt K Pad,TR-12-11 Site Position: Northing: 5,994,744.31 usft Latitude: 70°23'44.152 N From: Map Easting: 583,595.36usft Longitude: 149°19'11.252 W Position Uncertainty: 0.00 usft Slot Radius: 0" Grid Convergence: 0.64° Well Plan:MPK-44 Well Position +NI-S 0.00 usft Northing: 6,005,880.17 usft Latitude: 70°25'33.570 N +E/-W 0.00 usft Easting: 584,535.02 usft Longitude: 149°18'40.034 W Position Uncertainty 0.00 usft Wellhead Elevation: 0.00 usft Ground Level: 29.30 usft Wellbore _ MPK-44 4,101, Magnetics < Name a-� x natioil �� !LTi" Model 1� , ; Field Strength (nil BGGM2015 2/2/2016 18.86 81.07 57,509 Design MPK-44 wp2 Audit Notes: Version: Phase: PLAN Tie On Depth: 33.70 Vertical Section: Depth From(TVD) +NI-S +E/-W Direction '7-'4' (usft) (usft) (usft) () 33.70 0.00 0.00 51.48 Plan Sections Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +N/-S +El-W Rate Rate Rate Tool Face (usft) (°) (°) (usft) usft (usft) (usft) (°l100usft) (°l100usft) (°/100usft) (°) 33.70 0.00 0.00 33.70 -29.30 0.00 0.00 0.00 0.00 0.00 0.00 800.00 0.00 0.00 800.00 737.00 0.00 0.00 0.00 0.00 0.00 0.00 1 539.30 1. 2 1,628.00 24.84 51.52 1,602.30 109.94 138.32 3.00 3.00 0.00 5 5 1,828.00 24.84 51.52 1,783.80 1,720.80 162.22 204.09 0.00 0.00 0.00 0.00 2,162.73 38.23 51.53 2,068.45 2,005.45 270.90 340.83 4.00 4.00 0.00 0.02 7,848.44 38.23 51.53 6,534.81 6,471.81 2,459.82 3,095.39 0.00 0.00 0.00 0.00 8,413.03 10.00 51.00 7,044.93 6,981.93 2,602.24 3,273.87 5.00 -5.00 -0.09 -179.81 8,421.22 10.00 51.00 7,053.00 6,990.00 2,603.14 3,274.98 0.00 0.00 0.00 0.00 10,652.12 10.00 51.00 9,250.00 9,187.00 2,846.93 3,576.04 0.00 0.00 0.00 0.00 2/12/2016 6:29:57PM Page 2 COMPASS 5000.1 Build 73 11110 0 Halliburton :,,,1ALLIBURTC31 Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Plan:MPK-44 Company: Hilcorp Energy Company TVD Reference: MPK-44 @ 63.00usft(Doyon 14) I Project: Milne Point MD Reference: MPK-44 @ 63.00usft(Doyon 14) Site: M Pt K Pad North Reference: True Well: Plan:MPK-44 Ci Survey Calculation Method: Minimum Curvature Wellbore: MPK-44 Design: MPK-44 wp2 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Veil Section (usft) (0) (0) (usft) usft (usft) (usft) (usft) (usft) -29.30 33.70 0.00 0.00 33.70 -29.30 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 100.00 0.00 0.00 100.00 37.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 200.00 0.00 0.00 200.00 137.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 300.00 0.00 0.00 300.00 237.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 400.00 0.00 0.00 400.00 337.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 500.00 0.00 0.00 500.00 437.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 600.00 0.00 0.00 600.00 537.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 700.00 0.00 0.00 700.00 637.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 800.00 0.00 0.00 800.00 737.00 0.00 0.00 6,005,880.17 584,535.02 0.00 0.00 900.00 3.00 51.52 899.95 836.95 1.63 2.05 6,005,881.82 584,537.05 3.00 2.62 1,000.00 6.00 51.52 999.63 936.63 6.51 8.19 6,005,886.77 584,543.14 3.00 10.46 1,100.00 9.00 51.52 1,098.77 1,035.77 14.63 18.41 6,005,895.01 584,553.26 3.00 23.51 1,200.00 12.00 51.52 1,197.08 1,134.08 25.97 32.67 6,005,906.51 584,567.39 3.00 41.73 1,300.00 15.00 51.52 1,294.31 1,231.31 40.49 50.94 6,005,921.23 584,585.50 3.00 65.08 1,400.00 18.00 51.52 1,390.18 1,327.18 58.16 73.17 6,005,939.15 584,607.52 3.00 93.48 1,500.00 21.00 51.52 1,484.43 1,421.43 78.93 99.30 6,005,960.22 584,633.41 3.00 126.85 1,600.00 24.00 51.52 1,576.81 1,513.81 102.74 129.26 6,005,984.36 584,663.09 3.00 165.12 1,628.00 24.84 51.52 1,602.30 1,539.30 109.94 138.32 6,005,991.66 584,672.07 3.00 176.69 1,700.00 24.84 51.52 1,667.64 1,604.64 128.77 162.00 6,006,010.75 584,695.53 0.00 206.94 1,727.94 24.84 51.52 1,693.00 1,630.00 136.07 171.18 6,006,018.16 584,704.64 0.00 218.68 Base permafrost 1,800.00 24.84 51.52 1,758.39 1,695.39 154.90 194.88 6,006,037.26 584,728.12 0.00 248.95 1,828.00 24.84 51.52 1,783.80 1,720.80 162.22 204.09 6,006,044.68 584,737.24 0.00 260.71 1,900.00 27.72 51.52 1,848.35 1,785.35 182.06 229.04 6,006,064.79 584,761.96 4.00 292.58 2,000.00 31.72 51.52 1,935.18 1,872.18 212.90 267.85 6,006,096.07 584,800.41 4.00 342.15 2,100.00 35.72 51.53 2,018.34 1,955.34 247.43 311.30 6,006,131.09 584,843.47 4.00 397.65 2,162.73 38.23 51.53 2,068.45 2,005.45 270.90 340.83 6,006,154.89 584,872.73 4.00 435.38 2,200.00 38.23 51.53 2,097.73 2,034.73 285.25 358.89 6,006,169.44 584,890.62 0.00 458.44 2,300.00 38.23 51.53 2,176.28 2,113.28 323.75 407.34 6,006,208.48 584,938.63 0.00 520.32 2,400.00 38.23 51.53 2,254.84 2,191.84 362.25 455.78 6,006,247.52 584,986.63 0.00 582.20 2,500.00 38.23 51.53 2,333.39 2,270.39 400.74 504.23 6,006,286.56 585,034.63 0.00 644.08 2,600.00 38.23 51.53 2,411.94 2,348.94 439.24 552.68 6,006,325.61 585,082.64 0.00 705.97 2,700.00 38.23 51.53 2,490.50 2,427.50 477.74 601.13 6,006,364.65 585,130.64 0.00 767.85 2,800.00 38.23 51.53 2,569.05 2,506.05 516.24 649.57 6,006,403.69 585,178.64 0.00 829.73 2,900.00 38.23 51.53 2,647.61 2,584.61 554.74 698.02 6,006,442.73 585,226.65 0.00 891.61 3,000.00 38.23 51.53 2,726.16 2,663.16 593.24 746.47 6,006,481.77 585,274.65 0.00 953.49 3,100.00 38.23 51.53 2,804.72 2,741.72 631.74 794.91 6,006,520.81 585,322.65 0.00 1,015.37 3,200.00 38.23 51.53 2,883.27 2,820.27 670.24 843.36 6,006,559.85 585,370.66 0.00 1,077.25 3,300.00 38.23 51.53 2,961.82 2,898.82 708.73 891.81 6,006,598.90 585,418.66 0.00 1,139.13 3,400.00 38.23 51.53 3,040.38 2,977.38 747.23 940.25 6,006,637.94 585,466.66 0.00 1,201.01 3,500.00 38.23 51.53 3,118.93 3,055.93 785.73 988.70 6,006,676.98 585,514.67 0.00 1,262.89 3,600.00 38.23 51.53 3,197.49 3,134.49 824.23 1,037.15 6,006,716.02 585,562.67 0.00 1,324.78 3,700.00 38.23 51.53 3,276.04 3,213.04 862.73 1,085.59 6,006,755.06 585,610.67 0.00 1,386.66 3,800.00 38.23 51.53 3,354.59 3,291.59 901.23 1,134.04 6,006,794.10 585,658.68 0.00 1,448.54 3,900.00 38.23 51.53 3,433.15 3,370.15 939.73 1,182.49 6,006,833.14 585,706.68 0.00 1,510.42 2/12/2016 6:29:57PM Page 3 COMPASS 5000.1 Build 73 Halliburton H LL!BURTOI _ Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Plan:MPK-44 Company: Hilcorp Energy Company TVD Reference: MPK-44 @ 63.00usft(Doyon 14) Project: Milne Point MD Reference: MPK-44 @ 63.00usft(Doyon 14) Site: M Pt K Pad North Reference: True Well: Plan:MPK-44 Survey Calculation Method: Minimum Curvature Wellbore: MPK-44 Design: MPK-44 wp2 Planned Survey ,,,-- 44,',.. ;,11,1,',1,44444_4404,;,,.;:‘,0 I Measured Vertical Map Map 4, Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (usft) (0) (0) (usft) usft (usft) (usft) (usft) (usft) 3,44870 4,000.00 38.23 51.53 3,511.70 3,448.70 978.22 1,230.94 6,006,872.19 585,754.68 0.00 1,572.30 4,100.00 38.23 51.53 3,590.26 3,527.26 1,016.72 1,279.38 6,006,911.23 585,802.69 0.00 1,634.18 4,200.00 38.23 51.53 3,668.81 3,605.81 1,055.22 1,327.83 6,006,950.27 585,850.69 0.00 1,696.06 4,300.00 38.23 51.53 3,747.36 3,684.36 1,093.72 1,376.28 6,006,989.31 585,898.69 0.00 1,757.94 4,400.00 38.23 51.53 3,825.92 3,762.92 1,132.22 1,424.72 6,007,028.35 585,946.70 0.00 1,819.82 4,500.00 38.23 51.53 3,904.47 3,841.47 1,170.72 1,473.17 6,007,067.39 585,994.70 0.00 1,881.70 4,600.00 38.23 51.53 3,983.03 3,920.03 1,209.22 1,521.62 6,007,106.43 586,042.70 0.00 1,943.58 4,700.00 38.23 51.53 4,061.58 3,998.58 1,247.72 1,570.06 6,007,145.48 586,090.71 0.00 2,005.47 4,800.00 38.23 51.53 4,140.13 4,077.13 1,286.21 1,618.51 6,007,184.52 586,138.71 0.00 2,067.35 4,900.00 38.23 51.53 4,218.69 4,155.69 1,324.71 1,666.96 6,007,223.56 586,186.71 0.00 2,129.23 5,000.00 38.23 51.53 4,297.24 4,234.24 1,363.21 1,715.41 6,007,262.60 586,234.72 0.00 2,191.11 5,100.00 38.23 51.53 4,375.80 4,312.80 1,401.71 1,763.85 6,007,301.64 586,282.72 0.00 2,252.99 5,200.00 38.23 51.53 4,454.35 4,391.35 1,440.21 1,812.30 6,007,340.68 586,330.72 0.00 2,314.87 5,300.00 38.23 51.53 4,532.91 4,469.91 1,478.71 1,860.75 6,007,379.72 586,378.73 0.00 2,376.75 5,309.03 38.23 51.53 4,540.00 4,477.00 1,482.18 1,865.12 6,007,383.25 586,383.06 0.00 2,382.34 Schrader Bluff 5,400.00 38.23 51.53 4,611.46 4,548.46 1,517.21 1,909.19 6,007,418.77 586,426.73 0.00 2,438.63 5,500.00 38.23 51.53 4,690.01 4,627.01 1,555.70 1,957.64 6,007,457.81 586,474.73 0.00 2,500.51 5,600.00 38.23 51.53 4,768.57 4,705.57 1,594.20 2,006.09 6,007,496.85 586,522.74 0.00 2,562.39 5,700.00 38.23 51.53 4,847.12 4,784.12 1,632.70 2,054.53 6,007,535.89 586,570.74 0.00 2,624.27 5,800.00 38.23 51.53 4,925.68 4,862.68 1,671.20 2,102.98 6,007,574.93 586,618.74 0.00 2,686.16 5,847.51 38.23 51.53 4,963.00 4,900.00 1,689.49 2,126.00 6,007,593.48 586,641.55 0.00 2,715.56 10 3/4" 5,900.00 38.23 51.53 5,004.23 4,941.23 1,709.70 2,151.43 6,007,613.97 586,666.75 0.00 2,748.04 6,000.00 38.23 51.53 5,082.78 5,019.78 1,748.20 2,199.87 6,007,653.01 586,714.75 0.00 2,809.92 6,100.00 38.23 51.53 5,161.34 5,098.34 1,786.70 2,248.32 6,007,692.06 586,762.75 0.00 2,871.80 6,200.00 38.23 51.53 5,239.89 5,176.89 1,825.19 2,296.77 6,007,731.10 586,810.76 0.00 2,933.68 6,300.00 38.23 51.53 5,318.45 5,255.45 1,863.69 2,345.22 6,007,770.14 586,858.76 0.00 2,995.56 6,400.00 38.23 51.53 5,397.00 5,334.00 1,902.19 2,393.66 6,007,809.18 586,906.76 0.00 3,057.44 6,500.00 38.23 51.53 5,475.55 5,412.55 1,940.69 2,442.11 6,007,848.22 586,954.77 0.00 3,119.32 6,600.00 38.23 51.53 5,554.11 5,491.11 1,979.19 2,490.56 6,007,887.26 587,002.77 0.00 3,181.20 6,700.00 38.23 51.53 5,632.66 5,569.66 2,017.69 2,539.00 6,007,926.30 587,050.77 0.00 3,243.08 6,800.00 38.23 51.53 5,711.22 5,648.22 2,056.19 2,587.45 6,007,965.34 587,098.78 0.00 3,304.97 6,900.00 38.23 51.53 5,789.77 5,726.77 2,094.69 2,635.90 6,008,004.39 587,146.78 0.00 3,366.85 7,000.00 38.23 51.53 5,868.33 5,805.33 2,133.18 2,684.34 6,008,043.43 587,194.78 0.00 3,428.73 7,100.00 38.23 51.53 5,946.88 5,883.88 2,171.68 2,732.79 6,008,082.47 587,242.79 0.00 3,490.61 7,200.00 38.23 51.53 6,025.43 5,962.43 2,210.18 2,781.24 6,008,121.51 587,290.79 0.00 3,552.49 7,300.00 38.23 51.53 6,103.99 6,040.99 2,248.68 2,829.69 6,008,160.55 587,338.79 0.00 3,614.37 7,328.02 38.23 51.53 6,126.00 6,063.00 2,259.47 2,843.26 6,008,171.49 587,352.24 0.00 3,631.71 Top HRZ 7,400.00 38.23 51.53 6,182.54 6,119.54 2,287.18 2,878.13 6,008,199.59 587,386.80 0.00 3,676.25 7,500.00 38.23 51.53 6,261.10 6,198.10 2,325.68 2,926.58 6,008,238.63 587,434.80 0.00 3,738.13 7,600.00 38.23 51.53 6,339.65 6,276.65 2,364.18 2,975.03 6,008,277.68 587,482.80 0.00 3,800.01 7,700.00 38.23 51.53 6,418.20 6,355.20 2,402.67 3,023.47 6,008,316.72 587,530.81 0.00 3,861.89 7,800.00 38.23 51.53 6,496.76 6,433.76 2,441.17 3,071.92 6,008,355.76 587,578.81 0.00 3,923.77 2/12/2016 6:29:57PM Page 4 COMPASS 5000.1 Build 73 0 • Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Plan:MPK-44 Company: Hilcorp Energy Company ---,,TVD Reference: MPK-44 @ 63.00usft(Doyon 14) Project: Milne Point MD Reference: MPK-44 @ 63.00usft(Doyon 14) Site: M Pt K Pad North Reference: True Well: Plan:MPK-44 Survey Calculation Method: Minimum Curvature Wellbore: MPK-44 Design: MPK-44 wp2 i., ° Planned Survey ...�.t .may 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) 6,471.81 7,848.44 38.23 51.53 6,534.81 6,471 81 2,459.82 3,095.39 6,008,374.67 587,602.06 0.00 3,953.75 7,900.00 35.65 51.51 6,576.02 6,513.02 2,479.10 3,119.64 6,008,394.22 587,626.09 5.00 3,984.73 7,935.29 33.89 51.50 6,605.00 6,542.00 2,491.63 3,135.39 6,008,406.92 587,641.70 5.00 4,004.85 Top Kalubik Gamma Marker 8,000.00 30.65 51.48 6,659.71 6,596.71 2,513.14 3,162.42 6,008,428.74 587,668.48 5.00 4,039.40 8,100.00 25.65 51.43 6,747.86 6,684.86 2,542.53 3,199.31 6,008,458.54 587,705.03 5.00 4,086.57 8,153.93 22.95 51.40 6,797.00 6,734.00 2,556.37 3,216.66 6,008,472.57 587,722.22 5.00 4,108.76 Top Kuparuk D Shale 8,200.00 20.65 51.36 6,839.77 6,776.77 2,567.05 3,230.03 6,008,483.40 587,735.47 5.00 4,125.87 8,300.00 15.65 51.25 6,934.77 6,871.77 2,586.51 3,254.34 6,008,503.14 587,759.55 5.00 4,157.01 8,400.00 10.65 51.04 7,032.11 6,969.11 2,600.77 3,272.06 6,008,517.60 587,777.11 5.00 4,179.76 8,413.03 10.00 51.00 7,044.93 6,981.93 2,602.24 3,273.87 6,008,519.09 587,778.91 5.00 4,182.09 8,421.22 10.00 51.00 7,053.00 6,990.00 2,603.14 3,274.98 6,008,520.00 587,780.00 0.00 4,183.52 8,431.38 10.00 51.00 7,063.00 7,000 00 2,604.25 3,276.35 6,008,521.13 587,781.36 0.00 4,185.28 Top Kuparuk C Sand 8,500.00 10.00 51.00 7,130.58 7,067.58 2,611.75 3,285.61 6,008,528.73 587,790.53 0.00 4,197.19 8,600.00 10.00 51.00 7,229.06 7,166.06 2,622.68 3,299.10 6,008,539.81 587,803.90 0.00 4,214.56 8,700.00 10.00 51.00 7,327.54 7,264.54 2,633.60 3,312.60 6,008,550.89 587,817.27 0.00 4,231.92 8,736.00 10.00 51.00 7,363.00 7,300.00 2,637.54 3,317.46 6,008,554.88 587,822.08 0.00 4,238.18 Top Kuparuk A Sand 8,786.78 10.00 51.00 7,413.00 7,350.00 2,643.09 3,324.31 6,008,560.50 587,828.87 0.00 4,246.99 Top Miluveach 8,800.00 10.00 51.00 7,426.02 7,363.02 2,644.53 3,326.09 6,008,561.97 587,830.64 0.00 4,249.29 8,900.00 10.00 51.00 7,524.50 7,461.50 2,655.46 3,339.59 6,008,573.04 587,844.01 0.00 4,266.65 9,000.00 10.00 51.00 7,622.98 7,559.98 2,666.39 3,353.08 6,008,584.12 587,857.38 0.00 4,284.02 9,100.00 10.00 51.00 7,721.47 7,658.47 2,677.32 3,366.58 6,008,595.20 587,870.75 0.00 4,301.38 9,200.00 10.00 51.00 7,819.95 7,756.95 2,688.24 3,380.07 6,008,606.28 587,884.12 0.00 4,318.74 9,300.00 10.00 51.00 7,918.43 7,855.43 2,699.17 3,393.57 6,008,617.36 587,897.48 0.00 4,336.11 9,400.00 10.00 51.00 8,016.91 7,953.91 2,710.10 3,407.06 6,008,628.44 587,910.85 0.00 4,353.47 9,500.00 10.00 51.00 8,115.39 8,052.39 2,721.03 3,420.56 6,008,639.52 587,924.22 0.00 4,370.84 9,600.00 10.00 51.00 8,213.87 8,150.87 2,731.96 3,434.05 6,008,650.60 587,937.59 0.00 4,388.20 9,649.89 10.00 51.00 8,263.00 8,200.00 2,737.41 3,440.79 6,008,656.13 587,944.26 0.00 4,396.86 Top Jurassic 9,700.00 10.00 51.00 8,312.35 8,249.35 2,742.88 3,447.55 6,008,661.68 587,950.96 0.00 4,405.57 9,800.00 10.00 51.00 8,410.83 8,347.83 2,753.81 3,461.04 6,008,672.76 587,964.33 0.00 4,422.93 9,900.00 10.00 51.00 8,509.31 8,446.31 2,764.74 3,474.54 6,008,683.84 587,977.70 0.00 4,440.29 10,000.00 10.00 51.00 8,607.79 8,544.79 2,775.67 3,488.03 6,008,694.92 587,991.07 0.00 4,457.66 10,100.00 10.00 51.00 8,706.27 8,643.27 2,786.60 3,501.53 6,008,705.99 588,004.44 0.00 4,475.02 10,200.00 10.00 51.00 8,804.75 8,741.75 2,797.52 3,515.02 6,008,717.07 588,017.81 0.00 4,492.39 10,300.00 10.00 51.00 8,903.23 8,840.23 2,808.45 3,528.52 6,008,728.15 588,031.18 0.00 4,509.75 10,400.00 10.00 51.00 9,001.72 8,938.72 2,819.38 3,542.01 6,008,739.23 588,044.54 0.00 4,527.11 10,436.84 10.00 51.00 9,038.00 8,975.00 2,823.41 3,546.99 6,008,743.31 588,049.47 0.00 4,533.51 Top Sag River 10,500.00 10.00 51.00 9,100.20 9,037.20 2,830.31 3,555.51 6,008,750.31 588,057.91 0.00 4,544.48 10,600.00 10.00 51.00 9,198.68 9,135.68 2,841.24 3,569.00 6,008,761.39 588,071.28 0.00 4,561.84 2/12/2016 6:29:57PM Page 5 COMPASS 5000.1 Build 73 • • Halliburton HALLIBURTON Standard Proposal Report Database: Sperry EDM-NORTH US+CANADA Local Co-ordinate Reference: Well Plan:MPK-44 Company: Hilcorp Energy Company TVD Reference: MPK-44 @ 63.00usft(Doyon 14) Project: Milne Point MD Reference: MPK-44 @ 63.00usft(Doyon 14) Site: M Pt K Pad North Reference: True Well: Plan:MPK-44 Survey Calculation Method: ,=N Minimum Curvature Wellbore: MPK-44 Design: MPK-44 wp2 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) 9,150.00 10,614.54 10.00 51.00 9,213.00 9,150.00 2,842.83 3,570.97 6,008,763.00 588,073.23 0.00 4,564.37 Top Shublik 10,652.12 10.00 51.00 9,250.00 9,187.00 2,846.93 3,576.04 6,008,767.16 588,078.25 0.00 4,570.89 Targets Target Name y) S r -hitItniss target i %>' 4pD1r 'Ty c fl +Et-W Northing Easting _-Shape ' '(a) {dsft} -uft) (usft) (usft) (usft) MPK-44 TKUC 0.00 0.00 7,053.00 2,603.14 3,274.98 6,008,520.00 587,780.00 -plan hits target center -Circle(radius 50.00) Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (usft) (usft) Name {") (" ) 5,847.51 4,963.00 10 3/4" 10-3/4 13-1/2 10,652.12 9,250.00 7 5/8" 7-5/8 9-7/8 FEitntatfons , > r iii _ .4" �� Vertical i,t Dip ° 3 Depth SS .� s 7 s-__ •ra" ��` Dip Direction ...,,,,,„,-.4,,,,,,::,,,,,,I,' G 44 , : Name , ,,�,) {> ..ithoto....„,,,,,a--,-,for ; e () 8,786.78 7,413.00 Top Miluveach 0.00 10,436.84 9,038.00 Top Sag River 0.00 1,727.94 1,693.00 Base permafrost 0.00 8,736.00 7,363.00 Top KuparukASand 0.00 10,614.54 9,213.00 Top Shublik 0.00 7,935.29 6,605.00 Top Kalubik Gamma Marker 0.00 9,649.89 8,263.00 Top Jurassic 0.00 8,431.38 7,063.00 Top Kuparuk C Sand 0.00 8,153.93 6,797.00 Top Kuparuk D Shale 0.00 7,328.02 6,126.00 Top HRZ 0.00 5,309.03 4,540.00 Schrader Bluff 0.00 2/12/2016 6:29:57PM Page 6 COMPASS 5000.1 Build 73 I 1: 1 :4 Hilcorp Energy Company Milne Point M Pt K Pad Plan: MPK-44 • MPK-44 MPK-44 wp2 Sperry Drilling Services Clearance Summary Anticollision Report 12 February,2016 Closest Approach 3D Proximity Scan on Current Survey Data(North Reference) Reference Design: M Pt K Pad-Plan:MPK-44-MPK-44-MPK-44 wp2 Well Coordinates: 6,005,880.17 N,584,535.02 E(70°25'33.57"N,149°18'40.03"W) Datum Height: MPK-44 @ 63.00usft(Doyon 14) Scan Range:0.00 to 10,652.12 usft.Measured Depth. Scan Radius is 1,261.84 usft.Clearance Factor cutoff is Unlimited. Max Ellipse Separation is Unlimited Geodetic Scale Factor Applied Version: 5000.1 Build: 73 Scan Type: GLOBAL FILTER APPLIED:All wellpaths within 200'+100/1000 of reference Scan Type: 25.00 as mmi HALLIBURTON Sperry Drilling Services III 0 0 SURVEY PROGRAM Hilcorp Energy Company ANTI-COLLISION SETTINGS Date:2016-02-02T00:00:00 Validated:Yes Version: Calculation Method: Minimum Curvature Interpolation Method:MD,interval:25.00 Error System: ISCWSA Depth Range From:33.70 To 10652.12 Depth From Depth To Survey/Plan Tool Scan Method: Closest Approach 3D Centre Distance:1261.84 33.70 250.00 MPK-44 wp2(MPK-t4) MWD+IFR2+MS+sag Error Surface: Elliptical Conic Reference:Plan:MPK-44 wp2(Plan:MPK-44/MPK-44) 5802.00 10652.12 MPK-44 wp2(MPK-44) MWD+IFR2+MS+sag Warning Method: Error Ratio 0 40. 330 `�--, titi -t ,--.-.� `tel;� 330 L--�..a.-- __ ""�...� 30 300 %-JTi •/�� ~�'" I\\\� `K�\\. 300 a .404!� 4 £ ''•,,,, `�\XX\` 60 r �� 2701011r,Al�e�b .i 1 I 90 w IMPK-02I 270 r 1 i ! : : : I 90 From Colour To MD %ii��t�;�, / �/ 1 1 1 t' �a T 1 ; IMPK-osI" 11 1 r jr 1 �, y[�+1'h�cti�i�'�� '/ t� WO r 34 250 06 it. �� `��p�.�!`""' t MPK-14 wp0.A'� a�1: ♦ 7- 250 500 249 10,02.11‘\A.:-.. . 120 • " IMPK-51_-- ',:0 w� ',"::‘,'•''',,,,'''..'..-:.:'::''' :- 500 750 \-may i MPK.gS-- 4,'�s �♦ 120 750- 000 2 0•,�\ -• dl �'= 150 1000 1250 0 w �'t ' „AO ' 1250 1500 80�; IMPK-21" �, ,,� - 1500 1750 MPK-1 IMPK-18/11 MPK-1 �' �. Fsp 5 n ,l 1750 2000 Azimuth from North cs Centre to Centre Separation.0 osft/i MPK-2 210 tso IIP [ I MPK-1 2000 3000 I � , MPK-2 MPK-3 90 r 3000 10653 //MPK3 I MPK3 MPK3 I � IMPK-18 I IMPKA3I IMPK 34 Azimuth from North[0]vs Centre to Centre Separation[200 usft/in] Details:Plan:MPK-44 NAD 1927(NADCON CONUS) Alaska Zone 04 Ground Level: 29.30 SECTION DETAILS +N/S +E/-W Northing Easting Latittude Longitude Slot 0.00 0.00 6005880.17 584535.02 70°25'33.570 N 149°18'40.034 W Sec MD Inc Art TVD TVDSS +W-5 +Fl-W DLeg TFace VSec Target 1 33.70 0.00 0.00 33.70 -29.30 0.00 0.00 0.00 0.00 0.00 2 800.00 0.00 0.00 800.00 737.00 0.00 0.00 000 0.00 0c0 REFERENCE INFORMATION 3 1628.00 24.84 51.52 1802.30 1539.30 109.94 138.32 3.00 51.52 176.69 4 1828.00 24.84 51.52 1783.80 1720.80 162.22 204.09 000 0.00 280.71 Coordinate N/E Reference:Well Plan:MPK-44,True North 5 2162.73 38.23 51.53 2088.45 2005.45 27090 340.83 4.00 0.02 435.38 Vertical ND)Reference:MPK-04 63.00usft True on 14) 6 7848.44 38.23 51.53 6534.81 6471.81 2459.82 3095.39 0.00 0.00 3953.75 (TVD) (Doyon 7 8413.03 10.00 51.00 7044.93 6981.93 2602.24 3273.87 5.00-179.81 4182.09 Section NS)Reference:Slot-NOON,0.00E) 8 8421.22 10.00 51.00 705300 6990.00 2603.14 3274.98 0.00 0.00 4183.52 MPK-44 TKUC Measured Depth Reference:MPK-44 @ 63.00usft(Doyon id) 9 10652.12 10.00 51.00 925000 9187.00 2848.93 3576.04 0.00 0.00 4570.89 Calculation Method:Minimum Curvature 41, 0 Hilcorp Energy Company HALLIBURTON Milne Point Anticollision Report for Plan: MPK-44-MPK-44 wp2 Closest Approach 3D Proximity Scan on Current Survey Data(North Reference) Reference Design: M Pt K Pad-Plan:MPK-44-MPK-44-MPK-44 wp2 Scan Range:0.00 to 10,652.12 usft.Measured Depth. Scan Radius is 1,261.84 usft.Clearance Factor cutoff is Unlimited.Max Ellipse Separation is Unlimited Measured Minimum @Measured Ellipse @Measured Clearance Summary Based on Site Name Depth Distance Depth Separation Depth Factor Minimum Separation Warning Comparison Well Name-Wellbore Name-Design (usft) (usft) (usft) (usft) usft M Pt K Pad MPK-02-MPK-02-MPK-02 995.68 46.25 995.68 38.35 982.22 5.857 Centre Distance Pass- MPK-02-MPK-02-MPK-02 1,025.00 46.43 1,025.00 38.31 1,011.05 5.723 Ellipse Separation Pass- MPK-02-MPK-02-MPK-02 1,075.00 47.79 1,075.00 39.31 1,060.01 5.639 Clearance Factor Pass- MPK-05-MPK-05-MPK-05 710.79 108.58 710.79 104.84 694.43 29.022 Centre Distance Pass- MPK-05-MPK-05-MPK-05 750.00 108.66 750.00 104.75 733.21 27.787 Ellipse Separation Pass- MPK-05-MPK-05-MPK-05 1,000.00 119.73 1,000.00 114.76 981.77 24.074 Clearance Factor Pass- MPK-06-MPK-06-MPK-06 50.00 30.34 50.00 28.91 47.89 21.197 Centre Distance Pass- MPK-06-MPK-06-MPK-06 1,325.00 32.80 1,325.00 25.92 1,318.13 4.764 Clearance Factor Pass- MPK-09-MPK-09-MPK-09 322.35 107.96 322.35 105.01 322.56 36.606 Centre Distance Pass- MPK-09-MPK-09-MPK-09 325.00 107.96 325.00 105.00 325.16 36.483 Ellipse Separation Pass- MPK-09-MPK-09-MPK-09 800.00 131.54 800.00 126.69 788.49 27.132 Clearance Factor Pass- MPK-13-MPK-13-MPK-13 997.65 107.18 997.65 102.11 992.63 21.124 Centre Distance Pass- MPK-13-MPK-13-MPK-13 1,000.00 107.18 1,000.00 102.10 994.97 21.083 Ellipse Separation Pass- MPK-13-MPK-13-MPK-13 1,275.00 123.08 1,275.00 116.82 1,276.05 19.678 Clearance Factor Pass- MPK-17-MPK-17-MPK-17 825.40 118.83 825.40 114.61 810.93 28.135 Ellipse Separation Pass- MPK-17-MPK-t7-MPK-17 1,025.00 129.27 1,025.00 124.19 1,009.77 25.473 Clearance Factor Pass- MPK-18-MPK-18-MPK-18 170.01 59.06 170.01 57.33 169.41 34.055 Centre Distance Pass- MPK-18-MPK-18-MPK-18 525.00 60.75 525.00 56.36 523.98 13.844 Ellipse Separation Pass- MPK-18-MPK-18-MPK-18 1,075.00 71.50 1,075.00 63.01 1,072.71 8.422 Clearance Factor Pass- MPK-18-MPK-18A-MPK-18A 170.01 59.06 170.01 57.33 169.41 34.055 Centre Distance Pass- MPK-18-MPK-18A-MPK-18A 525.00 60.75 525.00 56.36 523.98 13.844 Ellipse Separation Pass- MPK-18-MPK-18A-MPK-18A 1,075.00 71.50 1,075.00 63.01 1,072.71 8.422 Clearance Factor Pass- MPK-21(check)-MPK-21-MPK-21 50.00 141.87 50.00 140.44 48.24 99.158 Centre Distance Pass- MPK-21(check)-MPK-21-MPK-21 100.00 141.92 100.00 140.37 98.08 91.986 Ellipse Separation Pass- MPK-21(check)-MPK-21-MPK-21 1,050.00 169.11 1,050.00 163.92 1,045.97 32.577 Clearance Factor Pass- MPK-21(check)-MPK-21A-MPK-21A 50.00 141.87 50.00 140.44 48.15 99.158 Centre Distance Pass- MPK-21(check)-MPK-21A-MPK-21A 100.00 141.92 100.00 140.37 97.99 91.986 Ellipse Separation Pass- MPK-21(check)-MPK-21A-MPK-21A 1,050.00 169.11 1,050.00 163.92 1,045.88 32.576 Clearance Factor Pass- 12 February,2016- 18:29 Page 2 of 6 COMPASS I • Hilcorp Energy Company HALLIBURTON Mune Point Anticollision Report for Plan: MPK-44-MPK-44 wp2 Closest Approach 3D Proximity Scan on Current Survey Data(North Reference) Reference Design: M Pt K Pad-Plan:MPK-44-MPK-44-MPK-44 wp2 Scan Range:0.00 to 10,652.12 usft.Measured Depth. Scan Radius is 1,261.84 usft.Clearance Factor cutoff is Unlimited.Max Ellipse Separation is Unlimited Measured Minimum @Measured Ellipse @Measured Clearance Summary Based on Site Name Depth Distance Depth Separation Depth Factor Minimum Separation Warning Comparison Well Name-Wellbore Name-Design (usft) (usft) (usft) (usft) usft MPK-21(check)-MPK-21APB1-MPK-21APB1 50.00 141.87 50.00 140.44 48.15 99.158 Centre Distance Pass- MPK-21(check)-MPK-21APB1-MPK-21APB1 100.00 141.92 100.00 140.37 97.99 91.986 Ellipse Separation Pass- MPK-21(check)-MPK-21APB1-MPK-21APB1 1,050.00 169.11 1,050.00 163.92 1,045.88 32.576 Clearance Factor Pass- MPK-22-MPK-22-MPK-22 106.61 90.07 106.61 88.25 106.06 49.615 Centre Distance Pass- MPK-22-MPK-22-MPK-22 825.00 90.95 825.00 86.00 824.87 18.375 Ellipse Separation Pass- MPK-22-MPK-22-MPK-22 1,000.00 95.79 1,000.00 90.32 999.62 17.487 Clearance Factor Pass- MPK-22-MPK-22PB1-MPK-22 Pb1 106.61 90.07 106.61 88.25 106.06 49.615 Centre Distance Pass- MPK-22-MPK-22PB1-MPK-22 Pb1 825.00 90.95 825.00 86.00 824.87 18.375 Ellipse Separation Pass- MPK-22-MPK-22PB1-MPK-22 Pb1 1,000.00 95.79 1,000.00 90.32 999.62 17.487 Clearance Factor Pass- MPK-25-MPK-25-MPK-25 598.09 157.76 598.09 154.59 596.12 49.694 Centre Distance Pass- MPK-25-MPK-25-MPK-25 725.00 158.06 725.00 154.34 722.31 42.469 Ellipse Separation Pass- MPK-25-MPK-25-MPK-25 1,050.00 179.07 1,050.00 173.93 1,040.87 34.858 Clearance Factor Pass- MPK-30-MPK-30-MPK-30 1,120.39 120.32 1,120.39 114.60 1,118.83 21.041 Centre Distance Pass- MPK-30-MPK-30-MPK-30 1,125.00 120.33 1,125.00 114.59 1,123.37 20.968 Ellipse Separation Pass- MPK-30-MPK-30-MPK-30 1,300.00 127.13 1,300.00 120.63 1,294.18 19.566 Clearance Factor Pass- MPK-33-MPK-33-MPK-33 50.00 210.91 50.00 209.87 33.75 201.705 Centre Distance Pass- MPK-33-MPK-33-MPK-33 825.00 211.95 825.00 207.60 809.16 48.726 Ellipse Separation Pass- MPK-33-MPK-33-MPK-33 1,225.00 248.90 1,225.00 242.45 1,193.29 38.602 Clearance Factor Pass- MPK-34-MPK-34-MPK-34 301.01 179.43 301.01 177.46 284.81 91.229 Centre Distance Pass- MPK-34-MPK-34-MPK-34 350.00 179.51 350.00 177.33 333.16 82.475 Ellipse Separation Pass- MPK-34-MPK-34-MPK-34 1,700.00 329.00 1,700.00 317.96 1,618.31 29.806 Clearance Factor Pass- MPK-37-MPK-37-MPK-37 286.09 236.78 286.09 234.85 284.10 122.749 Centre Distance Pass- MPK-37-MPK-37-MPK-37 450.00 237.15 450.00 234.51 447.01 90.002 Ellipse Separation Pass- MPK-37-MPK-37-MPK-37 1,275.00 280.82 1,275.00 274.59 1,268.11 45.087 Clearance Factor Pass- MPK-38-MPK-38-MPK-38 33.70 210.20 33.70 209.18 31.50 207.947 Centre Distance Pass- MPK-38-MPK-38-MPK-38 125.00 210.37 125.00 209.13 121.69 169.255 Ellipse Separation Pass- MPK-38-MPK-38-MPK-38 1,450.00 258.86 1,450.00 251.73 1,439.99 36.310 Clearance Factor Pass- MPK-38-Plan MPK-38A-MPK-38A WP01 33.70 210.20 33.70 209.45 34.00 280.112 Centre Distance Pass- MPK-38-Plan MPK-38A-MPK-38A WP01 125.00 210.37 125,00 209.39 124.19 214.117 Ellipse Separation Pass- MPK-38-Plan MPK-38A-MPK-38A WP01 1,450.00 258.86 1,450.00 251.99 1,442.49 37.685 Clearance Factor Pass- 12 February,2016- 18:29 Page 3 of 8 COMPASS S • Hilcorp Energy Company HALLIBURTON Milne Point Anticollision Report for Plan: MPK-44-MPK-44 wp2 Closest Approach 3D Proximity Scan on Current Survey Data(North Reference) Reference Design: M Pt K Pad-Plan:MPK-44-MPK-44-MPK-44 wp2 Scan Range: 0.00 to 10,652.12 usft.Measured Depth. Scan Radius is 1,261.84 usft.Clearance Factor cutoff is Unlimited.Max Ellipse Separation is Unlimited Measured Minimum @Measured Ellipse @Measured Clearance Summary Based on Site Name Depth Distance Depth Separation Depth Factor Minimum Separation Warning Comparison Well Name-Wellbore Name-Design (usft) (usft) (usft) (usft) usft MPK-43-MPK-43-MPK-43 823.72 275.42 823.72 271.23 809.20 65.785 Centre Distance Pass- MPK-43-MPK-43-MPK-43 825.00 275.42 825.00 271.23 810.48 65.698 Ellipse Separation Pass- MPK-43-MPK-43-MPK-43 1,250.00 322.39 1,250.00 316.35 1,208.06 53.367 Clearance Factor Pass- MPK-43-MPK43A-MPK-43A 823.72 275.42 823.72 271.23 809.20 65.785 Centre Distance Pass- MPK-43-MPK43A-MPK-43A 825.00 275.42 825.00 271.23 810.48 65.698 Ellipse Separation Pass- MPK43-MPK43A-MPK-43A 1,250.00 322.39 1,250.00 316.35 1,208.06 53.367 Clearance Factor Pass- Plan MPK-14-MPK-14-MPK-14 wp02 908.54 25.60 908.54 19.45 908.96 4.163 Centre Distance Pass- Plan MPK-14-MPK-14-MPK-14 wp02 925.00 25.66 925.00 19.43 925.43 4.117 Ellipse Separation Pass- Plan MPK-14-MPK-14-MPK-14 wp02 950.00 26.06 950.00 19.70 950.38 4.097 Clearance Factor Pass- Survey too/program From To Survey/Plan Survey Tool (usft) (usft) 33.70 250.00 MPK-44 wp2 MWD+IFR2+MS+sag 5,802.00 10,652.12 MPK-44wp2 MWD+IFR2+MS+sag Ellipse error terms are correlated across survey tool tie-on points. Calculated ellipses incorporate surface errors. Separation is the actual distance between ellipsoids. Distance Between centres is the straight line distance between wellbore centres. Clearance Factor=Distance Between Profiles/(Distance Between Profiles-Ellipse Separation). All station coordinates were calculated using the Minimum Curvature method. 12 February,2016- 18:29 Page 4 of6 COMPASS S • Hilcorp Energy Company HALLI B U RTO N Milne Point Anticollision Report for Plan: MPK-44-MPK-44 wp2 Direction and Coordinates are relative to True North Reference. Vertical Depths are relative to MPK-44 @ 63.00usft(Doyon 14). Northing and Easting are relative to Plan:MPK-44. Coordinate System is US State Plane 1927(Exact solution),Alaska Zone 04. Central Meridian is-150.00",Grid Convergence at Surface is: 0.65°. Ladder Plot LEGEND I-_ t --y y $ MPK-02,MPK-02,MPK-02 V1 -- MPK-05,MPK-05,MPK-05 V1 c -6- MPK-06,MPK-06,MPK-06V1 1200 f4 !' fYi 1 -X- MPK-09,MPK-09,MPK-09 VS 1 :� $ MPK-13,MPK-13,MPK-13 V5 CO i i,�: i J ill/: : 4f. MPK-17,MPK-17,MPK-17 V1 -3- MPK-18,MPK-18,MPK-18 V24 �; I. -6- MPK-18,MPK-18A,MPK-18A V1 800 /i tti. 1 • • - -t- MPK-21(chedO,MPK-21,MPK-21 V3 CO /,,i,,ith®r ,�' S't r $ MPK-21(d1edc),MPK-21A,MPK-21AV9 a) - $ MPK-21(dled4,MPK-21APB1,MPK-21APB1 V3 CO ��ftii� - i MPK-22,MPK-22,MPK-22 V5 iv /4�;f/ _-9- MPK-22,MPK-22PB1,MPK-22Pb1VO E' , ,i;�� -♦- MPK-25,MPK-25,MPK-25 V2 0 `�,� -6- MPK-30,MPK-30,MPK-30 V4 400 ,„f o !.;. ,.., .� -�- MPK-33,MPK-33,MPK-33 V1 1.12 Eaj .+�F-115. i -3- MPK-34,MPK-34,MPK-34 V3 � j`I► 7 4(- MPK-37,MPK-37,MPK-37V1 0 i $ MPK-38,MPK-38,MPK-38 V1 6.a.24c.,-y; i $ MPK38,Plan MPK-38A,MPK-38A WP01 V16 a -B- MPK-43,MPK-43,MPK-43 V1 0 1 500 3000 4500 6000 7500 $ MPK-43,MPK-43A,MPK-43A V3 Measured Depth(1500 usft/in) Plan MPK-14,MPK-14,MPK-14vp02V14 -B- MPK-44m2 12 February,2016- 18:29 Page 5 of 6 COMPASS • IP Hilcorp Energy Company HALLIBURTON Milne Point Anticollision Report for Plan: MPK-44-MPK-44 wp2 Clearance Factor Plot: Measured Depth versus Separation(Clearance)Factor r if , LEGEND 10.00 I _ $ MPK-02,MPK-02,MPK-02 V1 p MPK-05,MPK-05,MPK-05V1 8.75 e\1 -- -6- MPK-06,MPK-06,MPK-06 V1 11 • I -* MPK-09,MPK-09,MPK-09V5 1 • * OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. • • TRANSMITTAL LETTER CHECKLIST WELL NAME: I► 6 pL. K - y y PTD: oC I‘ a3 W X, Development Service Exploratory Stratigraphic Test Non-Conventional FIELD: I /vL ��)\r POOL: /J /,v. di�1- gc.kpctiNiA ►�✓�.�T �i 1 Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI The permit is for a new wellbore segment of existing well Permit LATERAL No. , API No. 50- - - - (If last two digits Production should continue to be reported as a function of the original in API number are API number stated above. between 60-69) 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 Pilot Hole name ( 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 conservation Spacing Exception 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 also required for this well: Well Logging 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 2/2015 • 410 ❑❑ , . . . . , N , m ° . , , , . , . . , . , , a) a co M' 3' c a), O. �, O N (A > : v a . . E a; n w 0O. r. a) v) a. . Q p o E'. a , y, : c'10 .c c lc)• y, - • E 0 2. o, . : : `) : o. : o o' a)' a) c' Y' a0 'O a 3' N' t' C' p c cL co N ~ , >� . . a O O. 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