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Home My WebLink About217-07971, c N o o m m O O J p 0O O O \ ❑ p Z \ 3 U) zi <U) n a WO cI �I 0 N m QN al N N Q z E 8 E n E= E ❑ ~I ❑ ~I S a 7 Q U C W - O N Q Q Q^ Q Q d OI O Q Hf •^-- N Q J N Z ❑ C l O m N W N M N yM N N Q E❑ O ll O IL O IL O LL O W ❑ ll IL d O w o y H E'c2 0 E W 'c E Cr'cH ' F E K E h 'cam Q o a y W o ooU oU a oU v QI oU v QI oU v QI °^' oa o on,,. n ^o u S 0 o o n o li y W W W- W W N W S W 2 O W S O N J " O J U a m 0 0 0 0 0 0 0 0 0 W N N N N N N N N Q y N m N N m N N m N N N N K m m m m m m 6 W O u 0 2 2 C1 O U Z v o O U d a mLn o 0 0 0 ON N N 00a ¢ N V O o J U iEp m o Q m r 0 v p T J � C N C N O d O R Q \ J Cl) a ¢ Q ' E m Q Z' E E m N N 3 E E o E 0 0 0 0 ❑ ❑ l a o o O Z ya m❑ S m m ami c O U'F 'mom ❑ z T❑ 12❑ ❑ ❑ ❑ ❑ J ❑ ❑ J E O) O 1 m a m 0) W m O 0) M M M M M W n Q z a c v m m m m m m m m m m m m N O C O W o N N N N N N N N N N N N _ a.o o E E d E z K O LL D O O O N O o N m C z 0= J c O f U U U U U U U U U U U p o— J F m a ❑ ❑ ❑ 0 ❑ 0 a rc o 3 °0"F o w W w 0 3 71, c N H E E 0 U v Q 0 a N 9 0 m N ¢ z O� ¢ z O U J d � p N N LL m a W x ) o 0 a n LL E W U `o U = z E O N m a Q 0 J LLm m o J E o v m U ON E l o ¢ z Q ° r o I^ V/ K m N C Q Q W C _ O Q 0 0 E U o a m z d O O _ O n ] ~ W w O E c U O o 0 y -_ 2 y w N E d o W n E 0 mo o 2 o Ci E E 0 U v Q 0 a N 9 0 Guhl, Meredith D (CED) From: Frank, Kevin J (DNR) Sent: Wednesday, August 21, 2019 1:47 PM To: Guhl, Meredith D (CED) Subject: RE: Pearl 1A, PTD 217-079, Extended Confidentiality? Hi Meredith, We have not received any requests for extended confidentiality for Hillcorp's Pearl 1A, PTD 217-079 well. Thanks for checking. Cheers, Kevin Petroleum Geologist Resource Evaluation Section Manager SOA -Dept. of Natural Resources Division of Oil and Gas 550 West 7th. Suite 1100 Anchorage, AK 99501-3560 (907)269-8791 k_evi n.fra nk@a laska.aov CONFIDENTIAL and PROPRIETARY pursuant to AS 38.05.020(b)(10),(11), and (12) and other applicable laws: This email message including any attachments is forth e sole use of the intended recipient(s) and may contain confidential, privileged, or proprietary information also protected under AS 43.05.230 and AS 40.25.100 or other applicable law; any release of this information without proper approval is not authorized. If you are not the intended recipient, any unauthorized disclosure, copying, distribution or action in reliance on the contents of this document is prohibited. If you have received this document in error, please inform the sender immediately and destroy all copies of the original message. From: Guhl, Meredith D (CED) Sent: Friday, August 16, 2019 9:27 AM To: Frank, Kevin J (DNR) <kevin.frank@alaska.gov> Subject: Pearl 1A, PTD 217-079, Extended Confidentiality? Hello Kevin, Has Hilcorp Alaska LLC requested extended confidentiality for the stratigraphic test well Pearl 1A, PTD 217-079, due for release after August 12, 2019? Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE. This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Meredith Guhl at 907-793-1235 or meredith.euhWalaska eov. DATE 08/22/2018 Seth Nolan Hilcorp Alaska, LLC GeoTech II 3800 Centerpoint Drive Anchorage, AK 99503 Tele: 907 777-8308 Fax: 907 777-8510 E-mail: snolan@hilcorp.com CONFIDENTIAL To: Alaska Oil & Gas Conservation Commission Meredith Guhl Petroleum Geology Assistant NO LONGER 333 W 7th Ave Ste 100 CONFIDENTIAL Anchorage, AK 99501 AUG 12 2019 DATA TRANSMITTAL PEARL STRATIGRAPHIC TESTS WELL 7r SAMPLE INTERVAL PEARL 1A 1 30'-600' (20 total samples) Please include current contact Information if different from above. RECE'VED AUG 2 2 2018 AOGCC Please acknowledge receiptyy-sig.Cing and returning one copy of this transmittal or FAX to 907 777.8510 Date: CJ I j Guhl, Meredith D (DOA) From: Cody Dinger <cdinger@hilcorp.com> Sent: Thursday, December 7, 2017 7:46 AM To: Guhl, Meredith D (DOA) Cc: Davies, Stephen F (DOA) Subject: FW: Formations at TD for Pearl & Seaview Strat Test Wells Hi Meredith, Here are the formations at TD below. Thanks, Cody From: David Buthman Sent: Thursday, December 07, 2017 7:18 AM To: Cody Dinger <cdinger@hilcorp.com> Subject: RE: Formations at TD for Pearl & Seaview Strat Test Wells Hi Cody, Here's the formations at TD listing, below. Rgds, Dave Formation at TD: Strat Test Well Name Formation at TD Pearl IA Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Seaview 1 Beluga Seaview 2 Beluga Seaview 3 Beluga Seaview 4 Beluga Seaview 5 Beluga Seaview 6 Beluga Upper Miuwe Seaview 7 Sterling DB 12/7/2017 From: Cody Dinger Sent: Tuesday, December 05, 2017 11:28 AM To: David Buthman <dbuthman@hilcorp.com> Subject: FW: Formations at TD for Pearl & Seaview Strat Test Wells Any thoughts on this? From: Guhl, Meredith D (DOA)[mailto:meredith.guhl@alaska.gov] Sent: Tuesday, December 05, 2017 11:26 AM To: Cody Dinger <cdinger@hilcorp.com> Cc: Davies, Stephen F (DOA) <steve.davies@alaska.gov> Subject: Formations at TD for Pearl & Seaview Strat Test Wells Hello Cody, I'm starting a review of the data received for the Pearl and Seaview strat test wells (all 14 of them). One of the initial issues I've noticed is none of the 10-407 forms have a formation listed at TD in Box 29. Could you please provide, at minimum, the formation at TD for all Pearl and Seaview wells. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCCI, State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Meredith Guhl at 907-793-1235 or meredith.euhl@alaska.¢ov. STATE OF ALASKA Al ASKA nll Amn r &(z cnnter:DVAT1nn1 rnnnnni - -- -- - .---..__...•..-..,......... .. . WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil ❑ Gas❑ SPLUG ❑ Other Q Abandoned ❑ Suspended ❑ 20AAc 25.105 20AAc 25.110 GINJ ❑ WINJ ❑ WAGE] WDSPL ❑ ' No. of Completions: _ NIA 2. Operator Name: 6. Date Comp., Susp., or Hilcorp Alaska, LLC Aband.: 7/12/2017 1b. Well Class: Development ❑ Exploratory ❑ Service ❑ Stratigraphic Test Q 14. Permit to Drill Number / Sundry: 217-079 ' 3. Address: 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 7. Date Spudded: July 10, 2017 15. API Number: 50-133-20666-00-00 4a. Location of Well (Governmental Section): Surface: 549' FNL, 809' FEL, Sec23, TIS, R14W, SM, AK Top of Productive Interval: N/A Total Depth: 549' FNL, 809' FEL, Sec 23, T1 S, R14W, SM, AK 8. Date TD Reached: July 11, 2017 - 16. Well Name and Number: Pearl 1A ' 9. Ref Elevations: KB: 120.89. 'GL: 118.59 BF:N/A 17. Field / Pool(s): N/A 10. Plug Back Depth MD/TVD: N/A 18. Property Designation: Private (Hilcorp Alaska) 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 203118.46 • y- 2225521.33 - Zone- 4 TPI: x- N/A y- N/A Zone- Total Depth: x- 203118.46 y- 2225521.33 Zone- 4 11. Total Depth MD/TVD: • 600' MD / 600' TVD 19. DNR Approval Number: N/A 12. SSSV Depth MD/TVD: N/A 20. Thickness of Permafrost MD/TVD: N/A 5. Directional or Inclination Survey: Yes LJ (attached) No Submit electronic and printed information per 20 AAC 25.050 13. Water Depth, if Offshore: N/A (ft MSL) I 21. Re-drill/Lateral Top Window MD(TVD: 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 Array Compensated True Resistivity 2" MD, Lithology Log 2"/5" MD . RECEIVED SEP 2 2 2017 GCC 23. CASING, LINER AND CEMENTING RECORD AMOUNT CASING WT. PERSETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD FT. TOP BOTTOM TOP BOTTOM PULLED 6-5/8" 17# Surface 100' Surface 100' 6" Driven MA53B 24. Open to production or injection? Yes Q No ❑ If Yes, list each interval open (MD/TVD of Top and Bottom; Perforation Size and Number; Date Perfd): Well open below 100', Hilcorp to use as a water source well. -/ ,'i 1nAPi.t 10'� )ATF SFR PET' l." 25. TUBING RECORD SIZE DEPTH SET (MD) PACKER SET (MDlTVD) N/A 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. Was hydraulic fracturing used during completion? Yes No J Per 20 AAC 25.283 (i)(2) attach electronic and printed information DEPTH INTERVAL (MD) JAMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: N/A Method of Operation (Flowing, gas lift, etc.): N/A Date of Test: Hours Tested: Production for Test Period �� Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24 -Hour Rate Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity- API (corr): Form 10-407 Revised 5!2017' / d ? �C'N CONTINUED ON PAGE 2 /o�� RBD4{tIS LvSubmi$EP 2 9 2017 ORIGINAL only 28. CORE DATA Conventional Corals): Yes ❑ No Sidewall Cores: Yes ❑ No ❑� If Yes, list formations and intervals cored (MD/TVD, Fromlro), 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 ❑� ' If yes, list intervals and formations tested, briefly summarizing test results. Permafrost - Top Permafrost - Base Attach separate pages to this form, if needed, and submit detailed test Top of Productive Interval N/A information, including reports, per 20 AAC 25.071. Formation at total depth: kree--' tv ddu x''40 -s AA Cr 31. List of Attachments: Schematic, Drilling Reports, As Built Drawing 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. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Authorized Name: Paul Mazzolini Contact Name: Cody Dinger Authorized Title: Drilling Manager Contact Email: Cdlfl er hilCOr p.COffl Authorized Contact Phone: 777-8389 Signature: — Date: 9. 2-4-1-7 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 1b: 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 19: Report the Division of Oil & Gas / Division of Mining Land and Water: Plan of Operations (LO/Region YY -123), Land Use Permit (LAS 12345), and/or Easement (ADL 123456) number. 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 AAC 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 5/2017 Submit ORIGINAL Only 9/22/2017 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 71" Avenue Anchorage, Alaska 99501 Re: Pearl Stratigraphic Test Wells Dear Commissioner, Enclosed for your review are the well completions reports for Pearl: 1A, 2, 3, 4, 5, 6, 7. RECEIVED SEP 2 2 2017 AOGCC Hilcorp is requesting a 10 year confidentiality extension of the stratigraphic test well results. If you have any questions, please don't hesitate to contact myself at 777-8389 or Paul Mazzolini at 777-8369. Sincerely, c. � Cody Din er Drilling Tech F f.� Hilcorp Alaska, LLC Page 1 of 1 Hilcorp Alaska, LLC P.O. Box 244027 Cody Dinger j Anchorage, 99524-4027 Drilling Tech 8 Tel 907 777 8389 Hilcorp Email cdinger@hilcorp.com ❑ncw Company 9/22/2017 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 71" Avenue Anchorage, Alaska 99501 Re: Pearl Stratigraphic Test Wells Dear Commissioner, Enclosed for your review are the well completions reports for Pearl: 1A, 2, 3, 4, 5, 6, 7. RECEIVED SEP 2 2 2017 AOGCC Hilcorp is requesting a 10 year confidentiality extension of the stratigraphic test well results. If you have any questions, please don't hesitate to contact myself at 777-8389 or Paul Mazzolini at 777-8369. Sincerely, c. � Cody Din er Drilling Tech F f.� Hilcorp Alaska, LLC Page 1 of 1 6-5/8" 100' M1ID 6" Hole Location Ninilchik Well Pearl 1A PTD: 217-079 NIX Wellbore Schematic API: 50-133-20666-00-00 TD = 600'/ TVD = 600' Casing Detail Size Type Wt Grade Conn. ID Top Btm 6-5/8" Surf Csg 17 A-53 Weld 6.125" Surf 100' Drilling Info Hole Section Casing 6" 6-5/8" x CH Updated by CID 09/21/2017 Hilcorp Energy Company Composite Report Well Name: Stratigraphic Test Wells Field: Ninilchik County/State: , Alaska (LAT/LONG): avation (RKB): API #: Spud Date: Job Name: 1741286 Pearl 1A Drilling Contractor AFE #: 1741286 AFE $: A00iftYData Ops Summary 7/10/2017 MIRU Kraxberger drilling, pipe truck, spot cuttings tank, raise mast, weld shoe on JT#1. Post permits and well sign. Drill and drive 6-5/8" casing to 100'. Drill ahead F/100' to 300'. RD for ni ht.;Catch samples eve 30'. 7/11/2017 Drill ahead from 300' to TD at 600', catch samples every 30'. POOH, Lay down pipe. Secure location. 7/12/2017 MIRU Halliburton Eline. Run ACRT Tool. Tag bottom @ 495' MD. Log well It 491'@ 20'/minute. RDMO. Release Eline.;Well Summary: 6-5/8" Casing set 100', TD ft 600', Well logged from 491' to Surface. 30' Sam les. 3 -BUILT: PEARL 1A NOTES: 1. COORDINATES SHOWN ARE BASED UPON DIFFERENTIALLY CORRECTED GPS OBSERVATIONS. ^, 2. AS—BUILT SURVEY CONDUCTED SEPTEMBER 18, 2017. 3. ALL DISTANCES ARE IN U.S. SURVEY FEET. 4. SURVEYED NAVD88 (G12B) GROUND ELEVATION OF PEARL 1A = 118.59' ' LEGEND: ® AS—BUILT WELL CASING, 2.3' ABOVE GROUND AS—BUILT PEARL 1A: LOCATED WITHIN HEAVENLY SIGHTS SUBDIVISION #2, TRACT D-1. SPCS NAD27 AK Z4N: LAT= 60'04'54.95155"N LONG= 151'37'33.27237',W — N — N= 2,225,521.33' E= 203,118.46' OWNER: HILCORP ALASKA, LLC 0 250 500 FEET lm� SCALE �/ . TII 0 W -`SOF A� ill SURVEYOR'S CERTIFICATE: ko 1 HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE SURVEYINGLAND THE STATE OF ALASKA ILT TtH �yp��j �9*,�' EXH BITR PRESENTS A SURVEY MADEBYME OR UNDER MY D DIRECT /ter • • �/ SUPERVISION. DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. 1... / MICHAEL R. E`j LS -11794 W , ON ' +�I�F9Fp ' • ..... • 5�� RECON, LLC 1' l`\ROFFSSIONAI�a`� r �' PALMER, 481 W. AK0996145 -0 DATE: 9 20/2017 DRAWING: Hilcor Dee AsBuilt—Dee SHEET: 1 OF 1 REV: 0 r\ HEAVENLY SIGHTS SUED. uxaewx¢o TRACT C xae ED HEAVENLY SIGHTS SUBD. #2 00� (� TRACT D-1 JACKINSKY SUBD. TR. C LOT 1 PEARL 1A ' ® WOODSONG qP COURT �4- TR. C Lor a TRACT E-1 EAGLE CREST ADON. CL. HATTON SUBD. TR. B-4 I TR. B-E TR. B-3 er TR. SgfR y B-7 -`SOF A� ill SURVEYOR'S CERTIFICATE: ko 1 HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE SURVEYINGLAND THE STATE OF ALASKA ILT TtH �yp��j �9*,�' EXH BITR PRESENTS A SURVEY MADEBYME OR UNDER MY D DIRECT /ter • • �/ SUPERVISION. DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. 1... / MICHAEL R. E`j LS -11794 W , ON ' +�I�F9Fp ' • ..... • 5�� RECON, LLC 1' l`\ROFFSSIONAI�a`� r �' PALMER, 481 W. AK0996145 -0 DATE: 9 20/2017 DRAWING: Hilcor Dee AsBuilt—Dee SHEET: 1 OF 1 REV: 0 N Pearl 1A, Hilcorp property (Pearl Pad site). Seth Nolan GeoTech II (RECEIVED mhnrp AIaA.. l.LC AUG 2 9 2017 AOGCC DATE 08/24/2017 Hilcorp Alaska, LLC 3800 Centerpoint Drive Anchorage, AK 99503 Tele: 907 777-8308 Fax: 907 777-8510 E-mail: snolan@hilcorp.com CONFig ENT IA. I To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 Log prints and data NO LONGER CONFIDENTIAL AUG 11 2019 Prints: 2 1 7 0 7 9 2$ 5 4 9 Pearl 1A: Array Compensated True Resistivity 2" MD, Lithology Log 2'/5" MD Pearl 2: GR -CCL 2" MD, Lithology Log 2"/5" MD 2 1 7 1 02 28 5 5 0 Pearl 3: GR -CCL 2" MD, Array Compensated True Resistivity 2" MD, Extended Range Micro Imager with Dip results, Lithology Log 2"/5" MD 2 1 7 0 80 28 55 1 Pearl 4: GR -CCL 2" MD, Lithology Log 2"/5" MD Pearl 5: GR -CCL 2" MD, Lithology Log 2"/5" MD 2 1 7 0 9 4 28 5 5 2 21 7095 28553 Pearl 6: Array Compensated True Resistivity 2" MD, Extended Range Micro Imager with Dip results, Lithology Log 2"/5" MD 8 Pearl 7: GR -CCL 2" MD, Lithology Log 2"/5" MD 2 1 7 0 1 28 5 5 4 21 7096 28555 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Seth Nolan GeoTech II Hil.,rp .AlaAm. Li.(. CONFIDENIT1 CD: 1 Electric logs Pearl 1A Mudlogs Pearl 2 GR -CCL j. Pearl 2 Mudlogs Pearl 3 GR -CCL Pearl 3 Mudlogs Pearl 4 GR -CCL Pearl 4 Mudlogs . Pearl 5 GR -CCL Pearl 5 Mudlogs . Pearl 6 Mudlogs Pearl 7 GR -CCL . Pearl 7 Mudlogs .PEARL-lA_ACRT_08JUL 17 .PEARL -3 ACRT 08JUL17 j. PEARL -6 ACRT 08]UL17 Hilcorp Alaska, LLC 3800 Centerpoint Drive Anchorage, AK 99503 Tele: 907 777-8308 Fax: 907 777-8510 E-mail: snolan@hilcorp.com Please include current contact information if different from above. 8/9/20178:18 AM File folder 8/9/20178:10 AM File folder 8/9120178:09 AM File folder 8/9120178:10 AM File folder 8/9/2017 8:16 AM File folder 8/9/20178:10 AM File folder 8/9/20178:09 AM File folder 8/9/2017 8:10 AM File folder 8/9/20178:09 AM File folder 8/9/20178:17 AM File folder 8/9/20178:10 AM File folder 819120178:09 AM File folder 8/9/20178:06 AM File folder 8/9/2017 8:07 AM File folder 8/9/20178:07AM File folder Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: Davies, Stephen F (DOA) From: Cody Dinger <cdinger@hilcorp.com> Sent: Friday, June 30, 2017 10:46 AM To: Davies, Stephen F (DOA); Paul Mazzolini Cc: Cody Terrell; Keegan Fleming - (C) Subject: Locates Pearl 3 (PTD #217-080) Pearl 1A (PTD #217-079) Pearl 6 (PTD #217-081) Attachments: Enstar Pearl 1A Locate.pdf; Enstar Pearl 6 Locate.pdf; Hilcorp Locate for Pearl 1A, 3, 6.pdf; Document to Steve Davies Locate Photos.pdf; Enstar Pearl 3 Locate.pdf Steve, As discussed I have attached documentation regarding locates done for: Pearl 1A, Pearl 3 and Pearl 6. Thanks, Cody Dinger Hilcorp Alaska, LLC Drilling Technician cdinger@hilcorp.com Direct: 907-777-8389 Cell: 509-768-8196 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Tuesday, June 27, 2017 4:45 PM To: Paul Mazzolini <pmazzolini@hilcorp.com> Cc: Cody Dinger <cdinger@hilcorp.com>; Cody Terrell <cterrell@hilcorp.com>; Keegan Fleming - (C) <kflem i ng@ hilcorp.com> Subject: RE: Pearl 4 (PTD #217-094) - Requests Paul, A photo such as this for each site such will be sufficient for utility locates. Please forward a copy of the Enstar email regarding gas lines when you receive it. Thanks, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Paul Mazzolini [mailto:pmazzolini@hilcorp.com] Sent: Tuesday, June 27, 2017 10:48 AM To: Davies, Stephen F (DOA) <steve.davies@alaska.gov> Cc: Cody Dinger <cdinger@hilcorp.com>; Cody Terrell <cterrell@hilcorp.com>; Keegan Fleming - (C) <kflemineCn hilcorp.com> Subject: RE: Pearl 4 (PTD #217-094) - Requests Steve, Hilcorp set a goal of a 50' radius from the strat well sites to any utility lines or cables when requesting the locates on the 811 call. The work done by the utilities for the locates at each of the strat test well sites only delivers an ok that there are no utility lines or cables within 50'. Locates have been completed for Pearl 1A, 2 & 3. ACS has noted ok spray painted on the ground at all 3 sites. Enstar has stated they have no gas lines in the Pearl area and we are working to get an email to document this fact. Please see the attached picture of the Pearl 3. Let me know if this will suffice as proof of the locate. Regards Paul From: Davies, Stephen F (DOA) [mailto:steve.davies(c�alaska aov] Sent: Monday, June 26, 2017 10:50 AM To: David Duffy; Paul Mazzolini Subject: Pearl 4 (PTD #217-094) - Requests David and Paul: 1. Could Hilcorp please provide proof that you all have the right to drill this shallow strat test well on this Kenai Peninsula Borough right-of-way property? 2. Are there any buried gas or oil pipelines, utility lines, or other potential shallow drilling hazards within this right- of-way? If so, please provide depths of, and distances to, these lines, and please provide proof that utility location services have been employed to avoid potential hazards. Thanks, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies(@alaska.gov. Pearl 3, IA. 6 Locate Photos Steve, 2%7-07`' 14�4,-( %4 As discussed here are the locate photos, this is at Pearl 3. ACS painted "ok" also at Pearl 1 & 2. They meant Pearl 6 instead of 2, 1 only requested locates for Pearl 3, 1A and 6. I've also attached the locate .no conflict" documentation from Enstar and Hilcorp (Harvest Pipeline). Give me a call if you have any questions. Thanks, Cody Dinger / 777-8389 / 509-768-8196 Site: Pearl 3 Site: Pearl IA Difficult to see, but says "HEA OV ACS addressed in Pearl 3 site photo. 6/20/2017 Time: 12:55 PM To e Alaska Page: 001 ASKA DIGLINE INC. NOTICE OF INTENT TO EXCAVATE HILCORP @ 19072836�e8 Ticket No: 2017250444 Seq. No: 7 Header Code: STANDARD Request Type: Update of: Locate By Date: 06/22/2017 Time: 12:51:00 PM Original Call Date: 06/20/2017 Time: 12:51:31 PM OP: 241 Transmit Date: 06/20/2017 Time: 12:55:01 PM Company: HTLCORP Requestor: CODY DINGER Phone: (907)777-8389 Job No: Cell: (509)768-8196 Fax: Pager: Email: cdinger@hilcorp.com Site Contact: Site Ph: Excavator/Owner: KRAXBURGER WATER WELLS Locate City: NINILCHIK MAP PAGE: KA5223 Address: 13295 Unit: To Address: Street: STERLING HWY Closest Intx: WOODSONG CT and Subdivision: HEAVENLY HEIGHTS SUB 2 TR D-1 Latitude: 60.08095550 Longitude: -151.62751650 Type of Work: TEST WELLS Location of Work: Road R/O/W: N Easement: Y Railroad R/O/W: N Front lot: N Back lot: N Depth of Work: 4 £t.: Y 10 ft.: Y Open access: Y Contact Caller to arrange site meet: Y Dig Info: PLEASE LOC FOR TEST WELLS TO BE DRILLED TO APPROX 600' DEEP, AREA IS STAKED. LOC A 50' R OF THE STAKE. SEE MAP EMAILED SEPARATELY. Remarks: Member Page: SOO1S014W23NE Members Notified: *HILCORP ENSTAR KPB HEA HOMER ACS KS Line Locate Pipeline(s) affected NP -f&_ Date ! Locate Status Location Visited pM q�t e No tine Marked No Contacted Site Contact MO High Pressure Standby A/0 I PJaska OneCall NOTICE OF INTE14T TO EXCAVATE Header Code STANDARD Ticket No: 20172504-04 NOPMAL origmal Call Dale. 6120!:017 12 5100 Plvl ,Afork To Begin Dale. 6/2.1/2017 12 51:00 PM �,ompani' HILCORP Umlacl Name CODY DINGER Ccnlacl Phone (904777.03135 ext ont act I a:< Alternate Conlan place. NINILCHII< street 13295, STERLING HWY Nearest Intersecting Sheet WOOEISQIVG CT S'ecund Intetsecting Street. Map Page KA5223 Rubdmsion HEAVENLY HEIG FS SUB 2 TR D-1 Pager. Cell (.509)-766$196 ext Alternate Phone. Doui 1 Ur1R Additional Dig Intormanon PLE/.SE I -OC FOR TEST WELLS TO BE DRILLED TO APPROX 600' DEEP, AREA IS STAKED. LOC A 50'P, OF THE STAKE SEE MAP EMAILED SEPARATELY Lldhng Iola T ;)p O1 Work !)PR a FT TEST WELLS INTACT CALLER TO ARRANGE SITE: EASEMENT DPR 10 FT �tomarl: I i SEM I C, I PLCOPP, _ACS KS. -HEA. HOMER i l Ln i I cc az!aa!�alaa!�a!aa!lea !da!ea o o F J� ag i cr W y,d� ZIJ pY V O O "' N (.7 W W M tn v 0 J 0 0 ()f fQ7 a � O F of t� fn ¢� a W ELI U .. Q u: at I I w o N 0 � N �� L7 Q O F 1�- � W I p J 11N J� 7 Ln H J H Q z 0 k m U ydj Y i W X R O F- O J i l Ln i I cc az!aa!�alaa!�a!aa!lea !da!ea o o F W N x v 0 J 0 0 ()f N U - C7 z H N O � V q W � Q O J O7 O F r N 11N z X X: N I m N of x F- N W w ~ ILO W I 1 L W H N I 2 } W J e r- u~i THE STATE °fALASKA GOVERNOR BILL WALKER Paul Mazzolini Drilling Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.00gcc.claska.gov Re: Exploratory Field, Exploratory Pool, Pearl IA Hilcorp Alaska, LLC Permit to Drill Number: 217-079 (revised) Surface Location: 549' FNL, 809' FEL, Sec. 23, TIS, R14W, SM, AK Bottomhole Location: 549' FNL, 809' FEL, Sec. 23, TIS, R14W, SM, AK Dear Mr. Mazzolini: Enclosed is the approved application for permit to drill the above referenced stratigraphic test. Hilcorp Alaska, LLC (Hilcorp) requests the following variances: 1. Hilcorp's request to waive wellbore surveys is APPROVED. The well depth is very shallow (600 feet) and intent is to drill vertically. 2. Hilcorp's request to use standard water well drilling equipment that is commonly used in the area is APPROVED under 20 AAC 25.037. The drilling rig will also use air instead of drilling mud to remove cuttings, which is also common. Due to shallow depth and nature of the area conventional well control equipment is not needed or practical. Rig will use a rotating head and large hose to direct returns to a tank. 3. Use of a diverter is WAIVED due to the shallow depth of the wellbore. As stated above a rotating head system will be used as an alternate method of directing returns safely during drilling operations. 4. Requirement under 20 AAC 25.120 to place a well abandonment marker on the casing stub is WAIVED. 5. Hilcorp's request to use grout instead of cement to P & A wells is APPROVED. Grout is commonly used to abandon water wells. Additional Conditions of Approval: 1. Portable gas detection monitor (LEL) to be used on site. (minimum of 2 meters) 2. Well may not be drilled any deeper than 600 feet without written approval from the AOGCC. 3. Photo document P&A operations: including casing cutoff, grout top and site clearance. Dry ditch samples submitted to the AOGCC must be in no greater than 30' sample intervals. Permit to Drill 217-079 revised June 20, 2017 Page 2 of 2 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 Hilcorp in the attached application, the following well logs are also required for this well: Lithology log required in lieu of mud log. 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. DATED this�y of June, 2017. Sincerely, CathyP Foerste" r Chair, ommissioner STATE OF ALASKA AL...,KA OIL AND GAS CONSERVATION COM%I. ION PERMIT TO DRILL REVISED 20 AAC 25.005 1 a. Type of Work: 1 A l O�� 1b. Proposed Well Class: Exploratory - Gas Service - WAG Service - Disp ❑ 1 c. Specify if well is proposed for: Drill ❑� Lateral ❑ Stratigraphic Test ❑� Development - Oil ❑ Service- Winj ❑ Single Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Redrill ❑ 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 Pearl 1A 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 MD: 600' TVD: 600' N/A 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 549' FNL, 809 FEL, Sec 23, T1 S, R14W, SM, AK Private Fee (Hilcorp Alaska) Top of Productive Horizon: 8. DNR Approval Number: 13. Approximate Spud Date: N/A N/A 6/5/2017 9. Acres in Property: 14. Distance to Nearest Property: Total Depth: 549' FNL, 809' FEL, Sec 23, TIS, R14W, SM, AK 22 222' FSL, 191' FWL 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL (ft): 121.7 15. Distance to Nearest Well Open Surface: x-203118.63 y- 2225521.25 Zone -4 GL / BF Elevation above MSL (ft): 117.7 to Same Pool: N/A 16. Deviated wells: Kickoff depth: feet 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 0 - 15 Surface: 0 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade I Coupling Length MD TVD MD TVD (including stage data) 6" 6-5/8" 17# A-53 Weld 150' Surface Surface 150' 150' 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): .1 lull _ Hydraulic Fracture planned? Yes ❑ No ❑ Y `25.050 20. Attachments: Property Plat Q P Sketch DSleeing Program Time v. Depth ot Shallow Hazard Analysis Diverter Sketch B abed Report e Drilling Fluid Program e 20 AAC requirements 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Name: Paul Mazzoiini Authorized Name: Paul Mazzolini Contact Email: irrazzollni hilcor .corn Authorized Title: Drilling Manager Contact Phone: 777-8369 s ` / Authorized Signature: Date: Commission Use Only Permit to DrillAPI Number: Permit Approval See cover letter for other Number:22_VT-07 �j re resed. 50- -2o(*(AL4 oo-00 Date: C. _\3-\'T requirements. Conditions of approval : If box is checked, well pmay not be used to explore for, test, or produce coalbed ethane, gas hydrates, or gas contained in shales: coalbed Other: tT-4.� La!�(� If- Samples mq'd: Yes Mud log req'd: Yes El N'jJQ H2S measures: Yes ❑ No W Directional svy req'd: Yes ❑ No u _ Spacing exception req'd: Yes ❑ No Inclination -only svy req'd: Yes ❑ No [r[� Post initial MIT req'd: Yes ❑ No ❑ P�J/DU injection */"t Lol APPROVED BY -s e Approved by: COMMISSIONER THE COMMISSION Date: -U - Submit Form and t Form 10-401 vised 5/2017 5 i i lA eL4 months from the date of approval per 20 AAC 25.005(8) gttachr��ents in Duplicate Paul Mazzolini Drilling Manager 1l ilrarp AlncLx, LIX 06/15/2017 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 711 Avenue Anchorage, Alaska 99501 Re: Kenai Peninsula Shallow Stratigraphic Test Well Program Pearl 1A Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8369 Email pmazzolini@hllcorp.com RECEIVED JUN 15 2017 AGGCC Enclosed for review and approval is the Revised Permit to Drill for the Pearl 1A shallow stratigraphic test well. Revisions include: • Correction to surface hole location. If you have any questions, please don't hesitate to contact me at 777-8369 (office) or 317-1275 (mobile). Sincerely, C Paul Mazzolini Drilling Manager Hilcorp Alaska, LLC Page 1 of 1 3 -STAKED NOTES: 11, 1. COORDINATES SHOWN ARE BASED UPON DIFFERENTIALLY CORRECTED GPS OBSERVATIONS. 2. AS—STAKED SURVEY CONDUCTED MARCH 15, 2017. 3. ALL DISTANCES ARE IN U.S. SURVEY FEET. 4. SURVEYED NAVD88 (G12) GROUND ELEVATION OF PEARL 1A = 117.7' LEGEND: 0 SET BRASS CAP MONUMENT ON 5/8" X 30" REBAR AS—STAKED DEEP PEARL 1A LOCATED WITHIN HEAVENLY I' SIGHTS SUBDIVISION #2, I'I,llll TRACT D-1. SPCS NAD27 AK Z4N: North LAT= 60'04'54.95077"N LONG= 151'37'33.26900"W N= 2,225,521.25' E= 203,118.63' SPCS NAD83 AK Z4N: LAT= 60'04'52.80057"N LONG= 151'37'41.21850"W N= 2,225,279.73' E= 1,343,138.34' OWNER: HEAVENLY SIGHTS HOLDING, LLC 0 250 500 FEET SCALE OF '*_.-'49LH fK •.*' r qf. LS -11794 ani (1 l lj: ROFES s D a k� pZ4 1111 � r SURVEYOR'S CERTIFICATE: I HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS AS—STAKED EXHIBIT REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION. DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. ON, LLC R ON F 4811 W. RECON CIR. PALMER, AK 99645 DATE: 6/8/2017 1 DRAWING: HilcorpDeepAsStaked—Revl I SHEET: 1 OF 1 REV: 1 1 HEAVENLY SIGHTS SUED. C uxvmi�nrcn TRACT C � i uxawiNom HEAVENLY SIGHTS SUED. g2 G� rnacr D-1 ;JACKINSKV SUED. TR. .0 LOT 1 PEARL to ,JAI WOODSONO COURT TR. C LOT 4 TRACT E-1 a CL HATTON 5 B �Py CREST AOON. AS /v./E V\�G� R. 3 TR. B-4�o M. B-8 / TR. S� y B-7 SURVEYOR'S CERTIFICATE: I HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS AS—STAKED EXHIBIT REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION. DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. ON, LLC R ON F 4811 W. RECON CIR. PALMER, AK 99645 DATE: 6/8/2017 1 DRAWING: HilcorpDeepAsStaked—Revl I SHEET: 1 OF 1 REV: 1 1 v Illi a t � a 0 L O [D C d M E 0 w u � Y p � z Aga V z ut�wu J a o 8 o=Ma s CID 0 -�- E O 9 a o c m � ^ B u o t 0 n IA `v 3 �a� ay X11 � a V u T LLL a � L EE, 7 o X a' g 0 U r N O N m tn r d J V J Z a h L , E A z OL - LL .ib Q kC o O OU a a • y O O IA a m m EE, X Q > n U r N O N tn r d J V J Z a Y a F � ce y O O IA x f� '1 1111'11'1 • III 1 1,1 ,1, 1, III 'l l'l �'Il 111 'IIII II III I,I II ,III I (IIII 11111 11111 I III II III 11. III 1111 111 I I� 1,1 I II 111111 IIII' s g F I 11 Al Q 91111 � LL I c II'I II,I IIII II II IIII II 1 I IIII I III I11j 11 II II II111 U N II I VV, I� A Y P w d a 0 a W \C> � g \ n Z y o � O r J + n rn W x y N 6 m g m n g Q a Y q Q � L t Q y y Al II 1N 'l l'l �'Il 111 'IIII II III I,I II ,III I (IIII 11111 11111 I III II III 11. III 1111 111 I I� 1,1 I II 111111 IIII' s g F I 11 Al FIELD: TRANSMITTAL LETTER CHECKLIST WELL NAME:�N r PTD: Z t -7 Development _ Service _ Exploratory /Strangraphic Test _ Non -Conventional POOL: 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 pit). 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 WELL PERMIT CHECKLIST Field & Pool Date: _ _ Well Name: PEARL 1A _ Program .S RL_ Well bore seg ❑ PTD#:2170790 Company HILCORP ALASKA LLC_ _. _ Initial Class/Type STR / INFO GeoArea 820 Unit 00000 On/Off Shore On_ Annular Disposal ❑ Administration 17 Nonconven. gas conforms to AS31.05,0300.1.A),0.2.A-D) - - - - - - - - .. NA... Date plat. SFD 6/15/2017 FIRST REVISED APPLICATION: Drilling 6" OH to 600 ft for stratigraphic testing. Using 3 coal bed markers �' �, A for seismic tie-in. gls Recommend clearly staling within the cover letter that the operator shall not drill below 600' measured v 1 Permit. fee attached- - - - _ - - - - - _ _ NA. . . 2 Lease number appropriate, . . . . . . . . ........... . . . .. . . ...... Yes - - - - - Per the Kenai Borough Parcel Viewer, this is. Fee land owned by Hilcory - - - - - - - - 3 Unique well, name and number..... . . . . . . ........... . . . . Yes .... Unique well number; this is not. a redrill of exploratory well Pearl 1 (PTD #202-01.1).. 4 Well located in -a defined pool.. - . . ..... . . . . . . . . . ....No........ Very shallow (600' MA / ND) strat test well to validateshallow geologic structure.-................... 5 Well located proper distance from drilling unit. boundary- - - - - - - - - - - ---- - - - NA - - - - - Well will be located about 155' from exterior boundary of Hilcorp's fee property. 6 Well located proper distance from other wells - - - - - .. _ NA ..... Will lie 2,800' WNW of P&A'd exploratory well Pearl 1. Pearl 1A will lie about 1,550' from the nearest 7 Sufficient acreage. available in drilling unit .............. . . . . . . . . . ...... . NA..... - water well that is registered in DNR's Well Log Tracking System database.. 8 lfdeviated, is wellbore plat. included _ _ _ _ _ - - - - - - NA ... Vertical well. 9 Operator only affected party.. - . . . ....... . . . . . . Yes ... Shallow well. will penetrate aquifers, only small amounts of methane gas expected. Impacted area will be 10 Operator hasappropriatebond in force - - - - - - - .. Yes - - - a 35' by 70' drill site located about 155' from property. boundary. Appr Date 11 Permit can be issued without conservation order- - - - - - - - ... - - - - - Yes - SFD 6/15/2017 12 Permit can be issued without administrative approval -- _ _ _ . _ ------------------ Yes... es....... - _ ....... . --- - -----..... - -.. --------.. 13 Can permit be approved before 15 -day wait....... - - - - - - - - - ----- - - - - - - Yes 14 Well located within area andstrataauthorized by. Injection Order # (put. 10# in. comments) (For- NA 15 All wells. within 1/4 -mile area.of review identified (For service well only) - - - - - - „ _ .. _ ..NA ---- - - - - - - - - --- - - - - - - - - - - -------- 16 Pre -produced injector duration of pre -production less than 3 months (For service well only) - - NA 18 Conductor string -provided - - - - - - - ---- - - - - - - - - - ......... - - - . - - .. Yes ..... 6 5/8" conductor to be driven l0 1508, Engineering 19 Surfacecasing. protects all -known USDWs .. - - .. NA ...... - Drilling OH to 600 ft.. Will not set casing..- Will be filled with grout to surface at P & A 20 CMT vol adequate to circulate.on conductor & surf csg ...... . . . . . . . . . . . .... NA - - - - - - no surfage-casing to be run, - - - - - - - - - - ...... 21 CMT vol adequate. to tie-in long string to surf csg- _ ... . . . . . . . .......... . NA 22 CMT will coverall knownproductivehorizons..... _ - _ - _ _ _ _ _ . NA....... At.P &A grout to be placed through wellbore for abandonment. 23 Casing designs adequate for CJ, B & permafrost - - .. ..... _ - - - ... NA - - - - No casing run OH to 600 ft for strat testing__ 124 Adequate tankage or reserve pit _ - - _ - ... NA Will -use airto drill.... cuttings_ to be hauled oulto KGF G_&- 125 If a re -drill, has a 10-403 for abandonment been approved - _ - _ .. .. - NA 26 Adequate wellbore separationproposed. ..... . . . . . . . . . ... ..... . . . . . . . NA. _ . _ - ... Vertical well, No others in area... 27 if diverter required, does ft meet regulations - - - - - ---- - - - - - - - - - ----- NA ... - - Diverter waived:.. to be drilled with water well equipment... Appr Date 28 Drilling fluid program schematic & equip list adequate... - - ....... - _ - _ NA- - - . - .. will use air drilling. method -to bring cuttings to surface. Samples every 30 ff.. - - - - GLS 29 BOPEs, do they meet regulation - ... - - - - NA - .. _ _ _ . Well consists of a rotating. head with bloey line for cuttings.. - - - - - 30 BOPE.press rating appropriate; lest to -(put psig in comments). - ..... _ _ _ _ - _ _ ... NA 31 Chokemanifoldcomplies w/API-RP-53 (May 84) - - _ _ _ _ _ _ _ _ _ _ _ _ _ NA 32 Work will occur without operation shutdown- . - ... - - - - NA . _ _ . _ .. Will drill well_.,. fillwellborewith, water and log with Eline.and have rig come back to. P &A 33 Is presence. of H2S gas probable - - _ - - - ... No_ _ - .. - - 2 LEL detectors. required. - 34 Mechanical condition of wells within AOR verified (For service well only) - - - - - - - - - -----NA 35 Permit can be issued w/o hydrogen sulfide measures ...... . . . . . . . . . .. . .... . . . Yes - - - - . None expected based on Pearl_ t exploratory, well, located 2,800' ESE.... Geology 36 Datapresentedon potential overpressure zones - - - - _ p_ ...................... Yes - - - None expected. Pearl 1 exploratory well encountered -maximums. of 1 unit (200 PPM) methane gas- t -- --__- Appr Date 37 Seismic analysis, of shallow gaszones. _ .. --- - - - - - - - - -- Yes ....... between surface and. &55'.MD/TVD, 3 -units (600 PPM). between 855' and 900' MD/TVD), and -10 units SFD 6/12/2017 38 Seabed condition survey.(if off -shore) . . . . .... . . . . . . . . . . .......... . . .. . .NA - - - - .. _ (2,000 PPM) between 90V and.10D0' MD/TVD while drilling with 8.9ppg. mud. Near.su[face sediments 39 Contactname/phone for weekly. progress reports [exploratory only] ...... . . . . . . . . ... Yes ...... _ are not expected to contain laterally extensive, trapping seals, Contact: Paul Mazzolini 777-8369 Geologic Date: Engineering Public Date SECOND REVISED APPLICATION: required due to error in ASP Zone 4 Y -Coordinate on Form 10401 and on As -Staked survey Commissioner: DTS / � `if I Q Co ssioner: Z i_ C F Co �41�� l Date plat. SFD 6/15/2017 FIRST REVISED APPLICATION: Drilling 6" OH to 600 ft for stratigraphic testing. Using 3 coal bed markers �' �, A for seismic tie-in. gls Recommend clearly staling within the cover letter that the operator shall not drill below 600' measured v O depth without prior approval from the AOGCC. SFD 6/12/2017 THE STATE °fALASKA GOVERNOR BILL WALKER Paul Mazzolini Drilling Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 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 Re: Exploratory Field, Exploratory Pool, Pearl I Hilcorp Alaska, LLC Permit to Drill Number: 217-079 Surface Location: 549' FNL, 809' FEL, Sec. 23, TIS, RI 4W, SM, AK Bottomhole Location: 549' FNL, 809' FEL, Sec. 23, TIS, RI 4W, SM, AK Dear Mr. Mazzolini: Enclosed is the approved application for permit to drill the above referenced stratigraphic test. Hilcorp Alaska, LLC (Hilcorp) requests the following variances: L Hilcorp's request to waive wellbore surveys is APPROVED. The well depth is very shallow (600 feet) and intent is to drill vertically. 2. Hilcorp's request to use standard water well drilling equipment that is commonly used in the area is APPROVED under 20 AAC 25.037. The drilling rig will also use air instead of drilling mud to remove cuttings, which is also common. Due to shallow depth and nature of the area conventional well control equipment is not needed or practical. Rig will use a rotating head and large hose to direct returns to a tank. 3. Use of a diverter is WAIVED due to the shallow depth of the wellbore. As stated above a rotating head system will be used as an alternate method of directing returns safely during drilling operations. 4. Requirement under 20 AAC 25.120 to place a well abandonment marker on the casing stub is WAIVED. 5. Hilcorp's request to use grout instead of cement to P & A wells is APPROVED. Grout is commonly used to abandon water wells. Additional Conditions of Approval: 1. Portable gas detection monitor (LEL) to be used on site. (minimum of 2 meters) 2. Well may not be drilled any deeper than 600 feet without written approval from the AOGCC. 3. Photo document P&A operations: including casing cutoff, grout top and site clearance. Dry ditch samples submitted to the AOGCC must be in no greater than 30' sample intervals. Permit to Drill 217-079 June 13, 2017 Page 2 of 2 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 Hilcorp in the attached application, the following well logs are also required for this well: Lithology log required in lieu of mud log. 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, CathyP. Foerster Commissioner, Chair DATED this 1.3day of June, 2017. STATE OF ALASKA ..KA OIL AND GAS CONSERVATION CON ION PERMIT TO DRILL REVISED 20 AAC 25.005 1 a. Type of Work: Drill ❑� • Lateral ❑ Redrill ❑ Reentry ❑ lb. Proposed Well Class: Exploratory - Gas Stratigraphic Test (] ' Development - Oil ❑ Exploratory - Oil ❑ Development - Gas ❑ Service - WAG ❑ Service - Disp ❑ Service - Winj ❑ Single Zone ❑ Service - Supply ❑ Multiple Zone ❑ 1c. Specify if well is proposed for: Coalbed Gas ❑ Gas Hydrates ❑ Geothermal ❑ Shale Gas ❑ 2. Operator Name: Hilcorp Alaska, LLC 5. Bond: Blanket Q. Single Well ❑ Bond No. 022035244 • 11. Well Name and Number: Pearl 1A 3. Address: 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 6. Proposed Depth: MD: 600' TVD: 600' 12. Field/Pool(s): N/A 4a. Location of Well (Governmental Section): Surface: 549' FNL, 809 FEL, Sec 23, TIS, R14W, SM, AK Top of Productive Horizon: N/A Total Depth: 549' FNL, 809' FEL, Sec 23, T1 S, R14W, SM, AK 7. Property Designation: Private Fee (Hilcorp Alaska) 8. DNR Approval Number: N/A 13. Approximate Spud Date: 6/5/2017 9. Acres in Property: 22 14. Distance to Nearest Property: 222' FSL, 191' FWL 4b. Location of Well (State Base Plane Coordinates - NAD 27): Surface: x-203118.63 • y- 2225251.25 • Zone -4 10. KB Elevation above MSL (ft): 121.7 GL / BF Elevation above MSL (ft): 117.7 15. Distance to Nearest Well Open to Same Pool: N/A 16. Deviated wells: Kickoff depth: feet Maximum Hole Angle: degrees 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) Downhole: 0 - 15 Surface: 0 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade I Coupling Length MD TVD MD TVD (including stage data) 6" 6-5/8" 17# A-53 Weld 150' Surface Surface 150' 150' 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): Hydraulic Fracture planned? Yes ❑ No AGGGG SOP Sketch 20. Attachments: Progeny Plat ❑ DivertSketch e Drillingv. Depth lot Shallow Hazard Analysi's Report e Drilling eFluid Program 8 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Name: Paul Mazzolim Authorized Name: Paul Mazzolini Contact Email: mazzollni hilcof .Com Authorized Title: Drilling Manager n Contact Phone: 777-8369 Authorized Signature: Date: 011/09/? -o / 7 Commission Use Only Permit to Drill '7 �} Number: Z r �7 / API Number: 50- %,'� -'�0(r..�—�"" C_Cs Permit Approval Date: I I See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: Other: �-••�Y -_{--� A ¢/ Samples req'd: Yes Lv� No,❑/ Mud l09 req'd: Yes ❑ No _e -,M J Z�HiS measures: Yes ❑ No +L� Directional svy req'd: Yes ❑ Not Spacing exception req'd: Yes ❑ No FBI Inclination -only svy req'd: Yes ❑ No Post initial injection MIT req'd: Yes q� No ❑ APPROVED BY Approved by. 40 COMMISSIONER THE COMMISSION Date: 43-1 Submit Form and Form 10-401 vises 512017 t t rev{liq�or�24 months fro the date of approval pe 20 AAC 25.005(g) Anach ants in Duplicate RI V I IVHL � Z17 G /z r7 tt i7 I Paul Mazzolini Drilling Manager Ililmrp AWk , LLC 06/9/2017 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7i^ Avenue Anchorage, Alaska 99501 Re: Kenai Peninsula Shallow Stratigraphic Test Well Program Pearl 1A Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8369 Email pmazzolini@hilcorp.com RECEIVED JUN 0 9 2011 AOGCC Enclosed for review and approval is the Revised Permit to Drill for the Pearl 1A shallow stratigraphic testwell. Revisions include: • Change TO from 850' MD/TVD to 600' MD/TVD • Addition of portable gas detection monitors at drillers console and cuttings tank If you have any questions, please don't hesitate to contact me at 777-8369 (office) or 317-1275 (mobile). Sincerely, Paul Mazzolini Drilling Manager Hilcorp Alaska, LLC Page 1 of 1 STATE OF ALASKA A .:A OIL AND GAS CONSERVATION COMM ON PERMIT TO DRILL 20 AAC 25.005 1a. Type of Work: Drill El ' Lateral ❑ Reddll ❑ Reentry ❑ 11b. Proposed Well Class: Exploratory - Gas Service - WAG ❑ Service - Disp ❑ Stratigraphic Test ❑✓ • Development - Oil ❑ Service - Winj ❑ Single Zone ❑ Exploratory - Oil ❑ Development - Gas ❑ Service - Supply ❑ Multiple Zone ❑ 1 c. Specify if well is proposed for: Coalbed Gas ❑ Gas Hydrates ❑ Geothermal ❑ Shale Gas ❑ 2. Operator Name: Hilcorp Alaska, LLC 5. Bond: Blanket Q • Single Well ❑ Bond No. 022035244 • 11. Well Name and Number: Peart 1A 3. Address: 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 6. Proposed Depth: MD: 850' TVD: 850' 12. Field/Pool(s): N/A 4a. Location of Well (Governmental Section): Surface: 549' FNL, 809 FEL, Sec 23, Tl S, R14W, SM, AK Top of Productive Horizon: N/A Total Depth: 549' FNL, 809' FEL, Sec 23, TIS, R14W, SM, AK 7. Property Designation: Private Fee (Hilcorp Alaska) 8. DNR Approval Number: N/A 1 . Approximate Spud Date: 6/5/2017 9. Acres in Property: 22 14. Distance to Nearest Property: 222' FSL, 191' FWL 4b. Location of Well (State Base Plane Coordinates - NAD 27): Surface: x-203118.63 y- 2225251.25 • Zone -4 10. KB Elevation above MSL (ft): 121.7 GL / BF Elevation above MSL (ft): 117.7 . 15. Distance to Nearest Well Open to Same Pool: N/A 16. Deviated wells: Kickoff depth: feet Maximum Hole Angle: degrees 17. Maximum Potential Pre ssur in psig (see 20 AAC 25.035) Downhole: 0 - 15 Surface: 0 18. Casing Program: Specifications Top - Setting Pl5pth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 6" 6-5/8" 17# A-53 Weld 150' Surface I SurXe 150' 150' 19, PRESENT WELL CONDITION SUMMARY (To be co eted for Redrill and Re -Entry Operations) Total Depth MD (fl): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length i Cement Volume MD TVD Conductor/Structural Al I Surface Intermediate Production r Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Hydraulic Fracture planned? Yes No ❑� 20. Attachments: Properly Plat Q BOP Sketch Divertter Sketch B Seabed Drilling Program v. Depth ysis Report e Drilling Fluid Program am ot B 20 AAC 25.050 requireShallow Hazard ments B 21. Verbal Approval: Commission Re esentative: Date 22. 1 hereby certify that the foreg,9fng is true and the procedure approved herein will not be deviated from without priorwri n approval. Contact Name: Paul Mazzolini Authorized Name: Paul zzolini Contact Email: pmazzoliniOhilcorp.com Authorized Title: Drillg Manager Contact Phone: 777-8369 Authorized Signature: _ Date: /4, Z017 Commission Use Only Permit to Drill Number: /_l L�7 �� API Number: 7 / 50-�?j��y�t�'"�J Permit Approval Date: See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbedd,r/0ethane„gas hydrates, or gas contained in shales: Other: ^ /1-F.tt �J� �j��}pp e 9 a+-_rA_C�Samples req'd: Yes Llj Nc j 1� Mud log req'd: Yes ❑ No,._,/iE �-1 f K /y �f A 0 H2S measures: Yes ❑ No [Et, Directional svy req'd: Yes ❑ No Lew/ 4�..,rprdU ax � ZZ, �'1Tt�” Z•5' 37 Spacing exception req'd: Yes ❑ No LFA Inclination -only svy req'd: Yes ❑ No LJ /I Post initial injection MIT req'd: Ygs ❑ No ❑ /an 1V 2t r%�'r'rSmr!r4� G�Gr /LS� a V 9 V e000 w�Cri5 APPROVED BY Approved by: I I a a COMMISSIONER THE COMMISSION Date: (1/7_11`7U �.,f l I ' � VA� Submit Form and Form 10-401 Revised 512017 ' i �n I months frqW the date of approval per 20 AAC 25.005(8) Attachments in Dwlicate �'/�o/, 7/7 H Hilmrp Alaska, U.C. 05/19/2017 Paul Mazzolini Drilling Manager Commissioner Alaska Oil & Gas Conservation Commission 333 W. Th Avenue Anchorage, Alaska 99501 Re: Kenai Peninsula Shallow Stratigraphic Test Well Program Pearl 1A Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8369 Email pmazzolini@hilcorp.com RECEIVED MAY 19 2017 AOGCC Enclosed for review and approval is the Permit to Drill for the Pearl 1A shallow stratigraphic test well located near Ninilchik, AK. Pearl 1A is the first of 16 - 20 shallow vertical stratigraphic test wells to be drilled and evaluated in the area between Ninilchik and Anchor Point on the southern Kenai Peninsula. The plan is to begin drilling operations during the week of June 5, 2017. The goal of the shallow stratigraphic test well program is to penetrate 1-3 shallow coal seams and evaluate this shallow wellbore with gamma ray and resistivity logs. A dipmeter log could also be run if requested by Geology to aid in the evaluation of the stratigraphic test well. Hilcorp will utilize a very experienced water well contractor on the Kenai Peninsula that will utilize best practices for the drilling of the shallow stratigraphic test wells. Hilcorp Alaska, LLC requests a variance from 20 AAC 25.035 (d) for utilizing diverter while drilling the shallow wells required for the stratigraphic test well program. The basis for this variance is information gathered by Hilcorp Sr. Geologist, David Buthman containing the shallowest gas shows and well test information from offset wells in the three areas to be targeted by the stratigraphic well test program. Hilcorp Alaska, LLC also requests a variance from 20 AAC 25.050 for obtaining wellbore surveys due to the very shallow wells being drilled for the stratigraphic test program. , A sign will be posted at each drilling location with the well information required by AOGCC. � `S The shallow stratigraphic test wells will be drilled with air and the cuttings will be captured in a tank as per AAC 20 25.047. Samples of these cuttings will be obtained every 30' for analysis. The cuttings will be hauled to the Kenai Gas Field G&I facility for disposal. Once drilled and evaluated the wells will be plugged utilizing grout and cut off 10' below GL to complete the P&A. It is possible that some of the landowners may want to complete wells as a water source, in which case 20 AAC 25.140 requirements will be followed. ✓ Approvals from surface landowners have been obtained prior to surveying, staking and preparation of the site for each stratigraphic test well. These approvals are included as an attachment with each PTD application. Care has been taken to place drilling locations near access roads and to minimize location site preparation by utilizing a 35' x 70' footprint. If you have any questions, please don't hesitate to contact me at 777-8369 (office) or 317-1275 (mobile). Sincerely, Paul Mazzolini Drilling Manager fay P"1 .v\ Hilcorp Alaska, LLC Page 1 of 1 6-5/8 6" Hole TD = 600' / TVD = 600' Casing Detail Size Location Ninilchik PROPOSED Well Pearl lA Top Btm 6-5/8" PTD: TBD A-53 Weld 6" WELLBORE API: TBD Hilmrp Alaska, LLC 6-5/8 6" Hole TD = 600' / TVD = 600' Casing Detail Size Type Wt Grade Conn. ID Top Btm 6-5/8" Surf Csg 17 A-53 Weld 6" Surf 150' ' Drilling Info Updated by CJD 06/9/2017 Hole Section Casing 6-5/8" 6" x OH Updated by CJD 06/9/2017 6-5/8, 6" H Location Ninilchik PROPOSED Well Pearl 1A PTD: TBD Ililrnry Alnekn, IA.0 WELLBORE API: TBD "iD = 850'/ TVD = 850' Detail Conn. ID Top Btm Weld 6" Surf 150' Hn Updated by CJD 05/15/2017 Stratigraphic Test Well Program Project Description The Hilcorp Alaska, LLC stratigraphic test well program will be performed from June -December of 2017, and possibly into Q1 of 2018 depending on the ability to build packed snow and ice roads into the locations located in swampy areas. Hilcorp anticipates drilling 16-20 stratigraphic test wells, each up to 600' deep that will be drilled and evaluated on the southern end of the Kenai Peninsula between Ninilchik and Anchor Point. The areas have been named Seaview (near Anchor Point), Pearl (near Ninilchik) and Deep Creek (for the inland locations about 5 miles south of the Happy Valley gas field). These stratigraphic test wells intend to penetrate 1-3 shallow coal seams within 500'-600' from surface. Once these coal seams have been penetrated each stratigraphic hole will be filled with freshwater and logged with gamma ray and resistivity tools on a single run. Hilcorp geologists may determine that a dipmeter log also be obtained in some of the stratigraphic test wells. The chosen contractor is very experienced in drilling wells within this shallow hole section on the Kenai Peninsula and will use air drilling to drill the stratigraphic test wells to depth. Best practices will be utilized to drill and abandon these shallow stratigraphic test wells. Casing will be required in the top 100' —150' of hole due to formation instability issues and will be drilled into place. The cuttings generated from the air drilling operations will be captured in a tank and samples will be obtained approximately every 30'. These cuttings will be hauled to the G&I Facility in the Kenai Gas Field for disposal. After each test well has been evaluated, it will be plugged with grout/bentonite mixture as required to meet regulatory requirements. Once a grout plug has been set to within 10' of surface, the casing will be cut off and the hole buried to complete the P&A of each stratigraphic test well. Once all drilling and data evaluation work has been completed, all locations will be cleaned up to the individual land owners satisfaction. Permission will be obtained from each land owner for all activities on their property to include surveying, site preparation, drilling activities, and data collection/evaluation of each stratigraphic test well. The stratigraphic test well locations were chosen to minimize impact to the surface owners. The area required for each stratigraphic test well is approximately 35' x 70'. Should soil conditions require, rig mats will be set in place to provide the drill rig unit and support equipment a firm and stable work surface. The locations have been placed near established roads and right of ways to minimize the length of any additionally needed access roads. Four locations in the Deep Creek area will require packed snow and ice roads to access swampy areas so that drilling and evaluation work will be completed in Q4 2017 or Q1 2018, once the ground has sufficiently frozen. Work for the Q4 2017 / Q1 2018 stratigraphic test wells will be completed in the same manner as those drilled and evaluated during the summer. Stratigraphic Test Well Program Project Description The Hilcorp Alaska, LLC stratigraphic test well program will be performed from June -December o 017, and possibly into Q1 of 2018 depending on the ability to build packed snow and ice roads into th ocations located in swampy areas. Hilcorp anticipates drilling 16-20 stratigraphic test wells, each u to 850' deep that will be drilled and evaluated on the southern end of the Kenai Peninsula between Ninil ik and Anchor Point. The areas have been named Seaview (near Anchor Point), Pearl (near Ninilchik) and eep Creek (for the inland locations about 5 miles south of the Happy Valley gas field). These stratigraphic st wells intend to penetrate 1-3 shallow coal seams within 500'-850' from surface. Once these coal seams ave been penetrated each stratigraphic hole will be filled with freshwater and logged with gamma ray nd resistivity tools on a single run. Hilcorp geologists may determine that a dipmeter log also be obtained i ome of the stratigraphic test wells. The chosen contractor is very experienced in drilling wells within Peninsula and will use air drilling to drill the stratigraphic test w drill and abandon these shallow stratigraphic test wells. Casin due to formation instability issues and will be drilled into pla e. operations will be captured in a tank and samples will be tain this4shallow hole section on the Kenai Ywe depth. Best practices will be utilized to ill be required in the top 100' —150' of hole The cuttings generated from the air drilling ed approximately every 30'. These cuttings will be hauled to the G&I Facility in the Kenai Gas Field r disposal. After each test well has been evaluated, it will be p gged with grout/bentonite mixture as required to meet regulatory requirements. Once a grout plug has een set to within 10' of surface, the casing will be cutoff and the hole buried to complete the P&A of a stratigraphic test well. Once all drilling and data evaluation work has been completed, all locations will Permission will be obtained from each cleaned up to the individual land owners satisfaction. owner for all activities on their property to include surveying, site preparation, drilling activities, and datp/collection/evaluation of each stratigraphic test well The stratigraphic test well location ere chosen to minimize impact to the surface owners. The area required for each stratigraphic test well is pproximately 35' x 70'. Should soil conditions require, rig mats will be set in place to provide the drill rig uni and support equipment a firm and stable work surface. The locations have been placed near established oads and right of ways to minimize the length of any additionally needed access roads Four locations in the DLy p Creek area will require packed snow and ice roads to access swampy areas so that drilling and evaluation ork will be completed in Q4 2017 or Q1 2018, once the ground has sufficiently frozen. Work for the Q4�20 / Q1 2018 stratigraphic test wells will be completed in the same manner as those drilled and evaluatgd r' gthe summer. t Shallow Stratieraohic Test Well Plan Pearl 1A 1. MIRU truck mounted drilling unit with support equipment onto 35' x 70' location. 2. Drive 6 5/8" casing through upper 100'-150' due to unstable hole conditions 3. Drill 6" vertical hole until one of 3 distinct coal seams is penetrated 500'- 600'. Base case is to air drill hole to TD. a. Samples to be gathered every 30' for geological review. 4. Once 6" hole drilled to TD, fill with freshwater or viscosified water to keep hole full for logging, approx. 21 bbls for gauge hole to 600' (.035 bbl/ft). 5. Remove cuttings from cuttings tank and haul to G&I in Kenai Gas Field for disposal. (21 bbls /hole) 6. RDMO truck mounted drilling unit and support equipment. Move to next strat test well location. 7. Rig up logging unit and log 6" hole with Gamma / Resistivity. Geologist may request a dipmeter be run. 8. Rig down logging unit and move to next strat well. 9. MIRU truck mounted drilling unit with support equipment. 10. RIH with tubing and spot grout / bentonite plug from TD to surface. 11. Set surface grout / bentonite plug within 10' of surface, cut and remove 10' of 6 5/8" casing. Fill in hole. No welded cap on 6 5/8" casing as per waiver from AOGCC. 12. RDMO truck mounted drilling unit and support equipment. 13. No welded cap is required on 6-5/8" surface casing per waiver from AOGCC. 14. Portable gas detectors will be placed at the Drillers console and at the cuttings tank. Shallow Stratigraphic Test Well Plan Pearl 1A 1. MIRU truck mounted drilling unit with support equipment onto 35'x 70' locatior� 2. Drive 6 5/8" casing through upper 100'-150' due to unstable hole condition 3. Drill 6" vertical hole until one of 3 distinct coal seams is penetrated 500;- 850'. Base case is to air drill hole to TD. a. Samples to be gathered every 30' for geological review. 4. Once 6" hole drilled to TD, fill with freshwater or viscosified ater to keep hole full for logging, approx. 30 bbls for gauge hole to 850' (.035 bbl/ft). 5. Remove cuttings from cuttings tank and haul to G&I i Kenai Gas Field for disposal. (30 bbis /hole) - 6. RDMO truck mounted drilling unit and support a ipment. Move to next strat test well location. C ,k�-YT Rig up logging unit and log 6" hole with Gamm / Resistivity. Geologist may request a dipmeter be run. 8. Rig down logging unit and move to next str well. p I 9. MIRU truck mounted drilling unit with s portequipment. +P J 10. RIH with tubing and spot grout / ben nite plug from TD to surface. - 11. Set surface grout / bentonite pIu ithin 10' of surface, cut and remove 10' of 6 5/8" casing. Fill in hole. No welded cap on 6 5/8" asing as per waiver from AOGCC. CAP 12. RDMO truck mounted drilli unit and support equipment. 13. No welded cap is require on 6-5/8" surface casing per waiver from AOGCC. 1� �1 i� �v OO NFIDENTIAL 8 May 2017 Alaska Oil and Gas Commission ATTN: Steve Davies Hilcorp Alaska, LLC ATTN: Paul Mazzolini RE: Shallow Stratigraphic Test Well Program Geologic Hazard Analysis Hilcorp Alaska, LLC has analyzed nearby oil and gas test wells, water wells, nearby gas producing wells, and seismic data on the southern Kenai Peninsula and do not anticipate any shallow gas at depths between 500' and 850' for the Stratigraphic Test Well Program. Therefore a waiver is requested for utilizing a diverter that is typical on deeper drilling oil and gas operations. The information that follows was utilized to determine the need for the diverter to drill the shallow stratigraphic test wells. Hilcorp Alaska, LLC is planning on drilling shallow stratigraphic test wells in three areas: Ninilchik, Deep Creek Unit, and Anchor Point. For each of these areas, geotechnical evidence indicates no shallow hazards. M. Guhl 10/29/2019 gets 35' Shallow Strat Well Drilling Site Plan Drill Cuttings Tank —20'x8'x6' Pipe Truck- 32'x8' 35,000 lbs Drill Rig - 40'x8' 62,000 lbs — 70'— TOOL STRING DIAGRAM : GTET-XRMI-ACRT Description Overbody Description O.D. Diagram Sensors @ Delays Length Accumulated Length 60.06 it 02.310 In 4 Fishing Neck 59.18 it RWCHA2345678 0 3.625 in 6.26 ft 135.00 lbs Ems--' Load Cell @ 56.38 ft 4 BH Temperature @ 55.81 ft Weak Point 10000 lbs. 12345678 00.010 in' _0 0.01 lbs 53.81 It t l- Z-Accelerometer @ 53.36 it GTETA2345678 03.625 In -r 8.52 ft 165.00 lbs <- Gammaftay @ 47.75 ft I •X 45.29 It So 0 00 he -12345676 0 3.625 in` _� Sp @ 1.86 ft 0.58 it Cabbage Head- 0 3.625 in 12345678 0 5.000 in 0.66 M 10.00 Iles 0.00 it Serial Weight Length Accumulated MSp Mnemonic Tool Name ed Number (lbs) (ft) (ft) (fpm) RWCH Releasable Wireline Cable Head 12345678 135.00 6.25 53.81 300.00 WP10K Weak Point 10000 Its; 12345678 0.01 0.01 ` 54.61 300.00 GTET Gamma Telemetry Tool 12345678 165.00 8.52 45.29 60.00 XRMI XRMI Navigation - Insite 12345678 290.00 14.30 30.99 30.00 XRMI-I XRMI Imager- Insite 12345678 206.00 11.16 19.83 30.00 ACRt Array Compensated True Resistivity Instrument Section 12345678 50.00 5.03 14.80 120.00 ACRt Army Compensated True Resistivity Sonde Section 12345678 200.00 14.22 0.58 120.00 SP SP Ring 12345678 0.00 0.25 1.86 300.00 RSOF Regal Standoff 6.75in 11111111 20.00 0.52 10.86 300.00 CBHD Cabbage Head 12345678 10.00 0.58 0.00 300.00 Total 1,076.01 60.06 ` Not included in Total Length and Length Accumulation. Data: GTET-XRMI-ACRT Date: 03-May-1717:02:12 HALLIBURTON TOOL STRING DIAGRAM: GTET-XRMI Description Overbody Description O.D. Diagram Sensors @ Delays Length Accumulated Length 40.56 It 0 2.310 in 11 !- Fishing Neck @ 39.681t RWCH-12345678 03.6251. _� 6.25. 135.00 lbs E1 Load Cell @ 36.88 ft F_ BH Temperature @ 36.31 ft Weak Point 100001bs- 12345678 0 0.010 W 0.01 Its 34.31 It 2-Accelerometerg 33.86 ft GMT-12345678 03.625 In _� 8.62 ft 165.00 lbs GammaRay@28.25ft 25.79 ft XRMI-I Instrument. 12345678 0 4.500 in Is 14.30 ft 290.00 the 11.49 it in XRMI-05.000 Mantlrnl- 12345 78 84.500 in �� N.16ft 20600 206.001bs Pads 2, 4, 6 @ 3.101t Pada 1, 3, 5@2.87 It 0.33 It Buil Nose-12345678 02.7501. 0.33ft 5.001bs 0.0011 Serial Weight Length AccumulatedLength MSped Mnemome Tool Name Number (Ibs) (ft) (ft) (rpm) RWCH Releasable Wireline Cable Head 12345678 135.00 6.25 34.31 300.00 WP10K Weak Point 10000 Ills 12345678 0.01 0.01 35.11 300.00 GTET Gamma Telemetry Tool 12345678 165.00 8.52 25.79 60.00 XRMI XRMI Navigation -InsBe 12345678 290.00 14.30 11.49 30.00 XRMI-I XRMI Imager- Insite 12345678 206.00 11.16 0.33 30.00 BLNS Bull Nose 12346678 5.00 0.33 0.00 300.00 Total 801.01 40.56 Not included in Total Length and Length Accumulation. Data: GTET-XRMI Date: 03-May-1716:18:07 AS—STAKED NOTES: A 1. COORDINATES SHOWN ARE BASED UPON DIFFERENTIALLY CORRECTED GPS OBSERVATIONS.' 2. AS—STAKED SURVEY CONDUCTED MARCH 15, 2017. 3. ALL DISTANCES ARE IN U.S. SURVEY FEET. 4. SURVEYED NAVD88 (G12) GROUND ELEVATION OF PEARL 1A = 117.7' LEGEND: 0 SET BRASS CAP MONUMENT ON 5/8" X 30" REBAR AS—STAKED DEEP PEARL 1A LOCATED WITHIN SECTION 23, (I T1S, R14W, SM, AK II^I,1l SPCS NAD27 AK Z4N: LAT= 60'04'54.95077"N', North LONG= 151'37'33.26900'W N= 2,225,251.25' E= 203,118.63' SPCS NAD83 AK Z4N: LAT= 60'04'52.80057"N LONG= 151'37'41.21850"W N= 2,225,279.73- E= 1,343,138.34' 0 250 500 FEET SCALE 11111 �® I�mm 15� 5000 19 =m rJ VICINITY MAP: 1" = 1 Mile OFA� \\l SURVEYOR'S CERTIFICATE: gc4 I HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE LAND y�T � EXHIBIT REPRESENTS S A SURVEY MADE YING IN THE STATE OF L BY K ME OR UNDER MA AND THAT IY DIRECT KED * 49TH *�/ SUPERVISION. DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE / BEST OF MY KNOWLEDGE. ....... 9 • MICHAEL R. EWI LS •11794 �/ , RI' ��r RECON, LLC 1 9F�' • .. • , • • �S ,�. 1 EC01� 481 W. RECON CIR. it PROffSSIONAI Vps� PALMER, AK 99645 DATE: /� � d HEAVENLY SIGHTS SUED. SEC. 14 C TRACT C /i UxwaUiHU� S SEC.C.1 1 uxaeomom 00� HEAVENLY SIGHTS SUED. #2 G TRACT D-1 JACKINSKY OWNER: HEAVENLY SIGHT HOLDING LLC SUED. �., TR. C LOT 1 PEARL 1A I C&RTON� \ C LOT 4 0 TRACT E-1 L. HATTON SUj. v/EAS/Cr SPH N. ^—^� TR. BB -3 TR. B—a x TR: B-8 jG a TR. �� S SEC. 23 SEC. 24 y B-7 OFA� \\l SURVEYOR'S CERTIFICATE: gc4 I HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE LAND y�T � EXHIBIT REPRESENTS S A SURVEY MADE YING IN THE STATE OF L BY K ME OR UNDER MA AND THAT IY DIRECT KED * 49TH *�/ SUPERVISION. DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE / BEST OF MY KNOWLEDGE. ....... 9 • MICHAEL R. EWI LS •11794 �/ , RI' ��r RECON, LLC 1 9F�' • .. • , • • �S ,�. 1 EC01� 481 W. RECON CIR. it PROffSSIONAI Vps� PALMER, AK 99645 DATE: Davies, Stephen F (DOA) From: David Buthman <dbuthman@hilcorp.com> Sent: Tuesday, May 30, 2017 4:33 PM To: Davies, Stephen F (DOA) Cc: Paul Mazzolini; Monte Mabry Subject: RE: Pearl to Strat Test Well (PTD #219-079) Attachments: Shallowgeologichazards_AOGCC_Daviesfollowup.docx Hi Steve, Attached report addresses your issues, below. If you have additional questions or requests, don't hesitate to contact me. Rgds, Dave From: Davies, Stephen F (DOA) (mailto:steve.davies@alaska.gov] Sent: Friday, May 26, 2017 1:09 PM To: Paul Mazzolini <pmazzolini@hilcorp.com>; David Buthman <dbuthman@hilcorp.com> Subject: Pearl lA Strat Test Well (PTD #219-079) Dave and Paul: I'm working through the Permit to Drill application for the Pearl lA strat test well. Maybe I've missed something, but where does Pearl lA lie with respect to seismic section UNO 01-10? Could Hilcorp please provide a copy of this seismic section with the Pearl 1A, 3, and 6 strat tests plotted to scale on it with respect to horizontal location along the line and vertical depth? Although section UNO 01-10 doesn't display strong amplitudes above about 1.0 seconds, located near the center of the section is a zone where the seismic signal clearly loses coherence. Several weakly continuous reflectors visible within this zone below about 1.0 second appear to sag downward. This area is reminiscent of gas chimneys that I have seen on other seismic surveys (an example from Google is shown below). Is this a gas chimney? If so, how far is it from the planned Pearl 1A, 3 and 6 strat test wells? If Pearl 1A, 3 and 6 are near this feature, what risk does it pose as a shallow drilling hazard. Could you please convert 1.0 seconds travel time to depth for me? researchgate.net 0`7 '-r746174( 2-0` - - Ste- -►N 2.5 w 3.0 Top Balder..:��. Top Ekofisk."M- C~ 3.5 ,Base chalky 4.0 Base Cretaceous= - t. 4. 5 ;_ Mrs Thanks, Steve Davies AOGCC CONFIDENTIAUTYNOTICE., 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 Steve Davies at 907-793-1224 or steve.davies@alaska.eov. 1J COO NFIDENTI � L 30 May 2017 Alaska Oil and Gas Commission ATTN: Steve Davies H ilcorp Alaska, LLC ATTN: Paul Mazzolini RE: Follow Up Discussion Shallow Stratigraphic Test Well Program Geologic Hazard Analysis The report addresses issues in the 5/26/2017 email from Steve Davies of the AOGCC, requesting the following: 1. Seismic sections that pass through stratigraphic test wells Pearl IA, 3, and 6 plotted to scale and vertical depth. Discussion below 2 Discussion of seismic coherence on UNO 01-10: is this a gas chimney? Is it a drilling hazard? Discussion below 3. Can you convert 1 seconds of travel time to depth? Depth converted seismic lines are included below. M. Guhl 10/29/2019 I*] w 11 i A ' a m � � o m 3 a E o n 0 g S i 0 a 2 ? J I © a a a s m L W N a t a a a❑'OO❑❑❑❑❑❑❑ >❑ D0❑❑❑❑EIDE] w 11 i A Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Friday, May 26, 2017 1:09 PM To: Paul Mazzolini (pmazzolini@hilcorp.com); David Buthman (dbuthman@hilcorp.com) Subject: Pearl 1A Strat Test Well (PTD #219-079) Dave and Paul: I'm working through the Permit to Drill application for the Pearl 1A strat test well. Maybe I've missed something, but where does Pearl 1A lie with respect to seismic section UNO 01-10? Could Hilcorp please provide a copy of this seismic section with the Pearl 1A, 3, and 6 strat tests plotted to scale on it with respect to horizontal location along the line and vertical depth? Although section UNO 01-10 doesn't display strong amplitudes above about 1.0 seconds, located near the center of the section is a zone where the seismic signal clearly loses coherence. Several weakly continuous reflectors visible within this zone below about 1.0 second appear to sag downward. This area is reminiscent of gas chimneys that I have seen on other seismic surveys (an example from Google is shown below). Is this a gas chimney? If so, how far is it from the planned Pearl 1A, 3 and 6 strat test wells? If Pearl 1A, 3 and 6 are near this feature, what risk does it pose as a shallow drilling hazard. Could you please convert 1.0 seconds travel time to depth for me? U p 18 researchgate.net/profile/Oliver_Mullins/publication/26746174( _. X _ .S►N y 3.0 Top Baldera� -� Top Ekofisk,—.- (D ► — m - tZ 3.5 --- Base chalk "F 4.0 base Cretaceous--- MW 4.5};r►.=x:=1/9 1 1!9 3R `1 - �3 kms' Thanks, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.daviesPalaska.gov. 1 H Hilcorp Alaska, LLC 05/11/2017 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7'" Avenue Anchorage, Alaska 99501 Paul Mazzolini Drilling Manager Re: Kenai Peninsula Shallow Stratigraphic Test Well Program Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8369 Email pmazzolini@hilcorp.com Enclosed for review and approval is the Permit to Drill for the Pearl 1A shallow stratigraphic test well located near Ninilchik, AK. Pearl 1A is the first of 16 - 20 shallow vertical stratigraphic test wells to be drilled and evaluated in the area between Ninilchik and Anchor Point on the southern Kenai Peninsula. The goal of the shallow stratigraphic test well program is to penetrate 1-3 shallow coal seams and evaluate this shallow wellbore with gamma ray and resistivity logs. A dipmeter log could also be run if requested by Geology to aid in the evaluation of the stratigraphic test well. Hilcorp Alaska, LLC requests a waiver from 20 AAC 25.035 (d) for utilizing diverter while drilling the shallow wells required for the stratigraphic test well program. The basis for this waiver request is information gathered by Hilcorp Sr. Geologist, David Buthman containing the shallowest gas shows and well test information from offset wells in the three areas to be targeted by the stratigraphic well test program that is attached. Hilcorp Alaska, LLC also requests a waiver from 20 AAC 25.050 for obtaining wellbore surveys due to the very shallow wells being drilled for the stratigraphic test program. A sign will be posted at each drilling location with the well information required by AOGCC. The shallow stratigraphic test wells will be drilled with air and the cuttings will be captured in a tank as per AAC 20 25.047. Samples of these cuttings will be obtained every 30' for analysis. The cuttings will be hauled to the Kenai Gas Field G&I facility for disposal. Once drilled and evaluated the wells will be plugged utilizing grout and a steel cap welded on top of the casing to complete the P&A. Approvals from surface landowners have been obtained prior to surveying, staking and preparation of the site for each stratigraphic test well. These approvals are included as attachments with drilling permit application. Care has been taken to place drilling locations near access roads and to minimize location site preparation by utilizing a 35'x 70' footprint. Drilling operations are expected to commence approximately June 5, 2017. If you have any questions, please don't hesitate to contact me at 777-8369. Sincerely, Paul Mazzolini Drilling Manager Hilcorp Alaska, LLC Page 1 of 1 STATE OF ALASKA AL <A OIL AND GAS CONSERVATION COMM. ON PERMIT TO DRILL 0 AAC 25.005 1 a. Type of Work: 1b. Proposed Well Class: Exploratory- Gas ❑ Service - WAG ❑ Service - Disp ❑ 1c. Specify if well is proposed for: Drill ❑Q Lateral 01 Stratigraphic Test ❑� Development - Oil ❑ Service- Winj ❑ Single Zone ❑ Coalbed Gas El Gas Hydrates ❑ Redrill ❑ Reentry ❑ 1 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 Peart 1A 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 MD: 850' TVD: 850' NA 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Surface: 549' FNL, 809 FEL, Sec 23, T1 S, R14W, SM, AK Private Fee (Hilcorp Alaska) Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: Private Party Approval 6/5/2017 9. Acres in Property: 14. Distance to Nearest Prooertv: Total Deoth: 549' FNL, 809' FEL, Sec 23, TIS, R14W, SM, AK 22 222' FSL, 191' FWL 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL (ft): 121.7 15. Distance to Nearest Well Open Surface: x-203,118.63' y- 2,225,251.25' Zone -4 GL Elevation above MSL (ft): 117.7 to Same Pool: NA 16. Deviated wells: NA Kickoff depth: feet 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) . Maximum Hole Angle: degrees Downhole: 65 Surface: 0 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade I Coupling Length MD TVD MD TVD (including stage data) 6" 65/8" 17 A-53 Weld 150' Surface Surface 150' 150' 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 ❑ Drilling Program Q Time v. Depth Plot ❑ Shallow Hazard Analysis❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program ❑ 20 AAC 25.050 requirements❑ 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Email pmazzolini@hilcori).com Printed Name Paul Mazzolini Title Drilling Manager Signature Phone 777-8369 Date Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: 50- Date: I requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: ❑ Other: Samples req'd: Yes E) No❑ Mud log req'd: Yes[:] No❑ H2S measures: Yes ❑ No E] Directional svy req'd: Yes❑ No[] 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: COMMISSIONER THE COMMISSION Date: Submit Form and Form 10-401 (Revised 11/2015) This permit is valid for 24 months from the date of approval (20 AAC 25.005(8)) Attachments in Duplicate Stratigraphic Test Well Program Project Description The Hilcorp Alaska, LLC stratigraphic test well program will be performed during Q2, Q3, and Q4 of 2017, or possibly Q1 of 2018 depending on weather. Hilcorp anticipates drilling 16-20 stratigraphic test wells, each up to 850' deep will be drilled and evaluated on the southern end of the Kenai Peninsula between Ninilchik and Anchor Point. The areas have been named Seaview (near Anchor Point), Pearl (near Ninilchik) and Deep Creek (for the inland locations about 5 miles S of the Happy Valley gas field). These stratigraphic test wells intend to penetrate 1-3 shallow coal seams within 500'-850' from surface. Once these coal seams have been penetrated each stratigraphic hole will be filled with freshwater and logged with gamma ray and resistivity tools on a single run. Hilcorp geologists may determine that a dipmeter log also be obtained in some of the stratigraphic test wells. The cuttings obtained from the air drilling operations will be captured in a tank and samples will be obtained approximately every 30'. Once each test well has been evaluated, it will be plugged with grout as required to meet regulatory requirements. Casing will be required in the top 100'— 150' of hole due to formation instability issues. Once a grout plug has been set at surface, a metal cap will be welded onto the casing to complete the P&A of each stratigraphic test well. Once all drilling and data evaluation work has been completed, all locations will be cleaned up to the individual land owners satisfaction. Permission will be obtained from each land owner for all activities on their property to include surveying, site preparation, drilling activities, and data collection/evaluation of each stratigraphic test well. The goal is to locate each stratigraphic test well so that there is minimal impact to the land. The area required for each stratigraphic test well is approximately 35'x 70'. Should soil conditions require, rig mats will be set in place to provide the drill rig unit and support equipment a firm and stable work surface. The locations have been placed near established roads and right of ways to minimize the length of any additionally needed access roads. Four locations in the Deep Creek area will be drilled in swampy areas so the drilling and evaluation work will be completed in Q4 2017 or Q1 2018, once the ground has sufficiently frozen. Work for the Q4 2017 / Q1 2018 stratigraphic test wells will be completed in the same manner as those drilled and evaluated during the summer. COO NF DENIMd 8 May 2017 Alaska Oil and Gas Commission ATTN:Steve Davies Hilcorp Alaska, LLC ATTN: Paul Mazzolini RE: Shallow Stratigraphic Test Well Program Geologic Hazard Analysis Hilcorp Alaska, LLC has analyzed nearby oil and gas test wells, water wells, nearby gas producing wells, and seismic data on the southern Kenai Peninsula and do not anticipate any shallow gas at depths between 500' and 850' for the Stratigraphic Test Well Program. Therefore a waiver is requested for utilizing a diverter that is typical on deeper drilling oil and gas operations. The information that follows was utilized to determine the need for the diverter to drill the shallow stratigraphic test wells. Hilcorp Alaska, LLC is planning on drilling shallow stratigraphic test wells in three areas: Ninilchik, Deep Creek Unit, and Anchor Point. For each of these areas, geotechnical evidence indicates no shallow hazards. M. Guhl 10/29/2019 Shallow Stratigraphic Test Well Plan Pearl 1A 1. MIRU truck mounted drilling unit with support equipment onto 35'x 70' location. 2. Drive 6 5/8" casing through upper 100'-150' due to unstable hole conditions 3. Drill 6" vertical hole until one of 3 distinct coal seams is penetrated 500'- 850'. Base case is to air drill hole to TD. a. Samples to be gathered every 30' for geological review. 4. Once 6" hole drilled to TD, fill with freshwater or viscosified water to keep hole full for logging, approx. 30 bbls for gauge hole to 850' (.035 bbl/ft). 5. Remove cuttings from cuttings tank and haul to G&I in Kenai Gas Field for disposal. (30 bbls /hole) 6. RDMO truck mounted drilling unit and support equipment. Move to next strat test well location. 7. Rig up logging unit and log 6" hole with Gamma / Resistivity. Geologist may request a dipmeter be run. 8. Rig down logging unit and move to next strat well. 9. MIRU truck mounted drilling unit with support equipment. 10. RIH with tubing and spot grout plug from TD to surface. 11. Set surface grout plug and weld cap onto 6 5/8" casing. 12. RDMO truck mounted drilling unit and support equipment. AS -STAKED NOTES: 1. COORDINATES SHOWN ARE BASED UPON DIFFERENTIALLY CORRECTED GPS OBSERVATIONS. 2. AS -STAKED SURVEY CONDUCTED MARCH 15, 2017 3. ALL DISTANCES ARE IN U.S. SURVEY FEET. 4. SURVEYED NAVD88 (1312) GROUND ELEVATION OF PEARL 1A = 117.7' LEGEND: 0 SET BRASS CAP MONUMENT ON 5/8" X 30" REBAR AS -STAKED DEEP PEARL 1A: LOCATED WITHIN SECTION 23, TIS, R14W, SM, AK SPCS NAD27 AK Z4N: LAT= 60.04'54.95077"N LONG= 151'37'33.26900"W N= 2,225,251.25' E= 203,118.63' SPCS NAD83 AK Z4N: LAT= 60.04'52.80057"N LONG= 15137'41.21850"W N= 2,225,279.73' E= 1,343,138.34' Cl 250 500 FEET L� SCALE *:-49TH N "-.* ...................... � :.MICHAEL R. EWIf�S : � I �c LS -11794 +ill��ROffSSIONP��pN�+ � North 17 20 SURVEYOR'S CERTIFICATE: I HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS AS -STAKED EXHIBIT REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION, DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. �'"/�✓O��`w 4ECON, LLC 81 W. RECON CIR. PALMER, AK 99645 HEAVENLY SIGHTS SUBD. SEC. 14 C TRACT C UN9lBWNOFD SEC./1 uxsueorvom Q0� HEAVENLY SIGHTS SUBD. #2 VTRACT D-1 VACKINSKY OWNER: HEAVENLY SIGHT HOLDING LLC SUBD. TR..C LOT 1 1 PEARL 1A W0 DSONG 0 C`PF, COURT —� F� TR. C LOT 4 0 TRACT E-1 Py CL. JATTON SU0 2�/EAGLE CREST ADDN. TR. B-4 f TR. 6-3 1R. B-8 AG TR SS�RV�AG SEC. 23 SEC. 24 h 8-7 SURVEYOR'S CERTIFICATE: I HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS AS -STAKED EXHIBIT REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION, DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. �'"/�✓O��`w 4ECON, LLC 81 W. RECON CIR. PALMER, AK 99645 c m H: ar in 4A c D 2W 41 L 3 0 ra t N iD DO x x 0 N 2 zn m 0 0 0 Lri m x N m Iz U L U1 Q 1.1 HALLIBURTON TOOL STRING DIAGRAM: GTET-ACRT Description Overbody Description 0. D. Diagram Sensors @ Delays Length Accumulated Length 34.60 It 0 2.310 in -' 11 Fishing Neck @ 33.72 ft RWCH-12345678 0 3.625 In It 6.25 ft 135.00 lbs Ems. Load Cell @ 30.92 ft IE - BH Temperature@30.35 ft Weak Point 700001bs- 12345678 00.010 In' -0 0.01 lbs 28.35 It t- Z-Accelerometer@27.90ft GTET-12345678 03.625 in _0 8.52n 165.00 Ibs GammaRay @ 22.29 ft 19.83 ft ACRt Instrument - 12345678 0 3.625 in -11- 5.03 It 50.00 lbs 4.80 ft Mud ResisOvity@13.44f1 Regal Standoff 6_75. 11111111 0 5.000 in` - 6 20.00 be t- ACRt @9.46 ft ACRt Sonde - 12345678 0 3.625 in 0 1422 ft 200.00 Iles SP Ring -12345678 0.00 lbs 03.625In` -0 SP @ 1.66 It 0.58 ft Cabbage Head- 0 3.825 in 12345678 0 5.000 in 0.58 ft 10.00 lbs 0.00 ft Serial Weight Length Accumulated MaxEg. MnemonicTool Name Leng(ft) Number (lbs) (ft) (fpm) RWCH Releasable Wireline Cable Head 12345678 135.00 6.25 28.35 300.00 WP10K Weak Point 10000 lbs 12345678 0.01 0.01 ` 29.15 300.00 GTET Gamma Telemetry Tool 12345678 165.00 8.52 19.83 60.00 ACRt Array Compensated True Resistivity Instrument Section 12345678 50.00 5.03 14.80 120.00 ACRt Array Compensated True Resistivity Sonde Section 12345678 200.00 14.22 0.58 120.00 SP SP Ring 12345678 0.00 0.25 . 1.86 300.00 RSOF Regal Standoff 6.75in 11111111 20.00 0.52 ' 10.86 300.00 CBHD Cabbage Head 12345678 10.00 0.58 0.00 300.00 Total 580.01 34.60 • Not included in Total Length and Length Accumulation, Data: GTET-ACRT Date: 03 -May -17 16:59:58 HALLIBURTON TOOL STRING DIAGRAM: GTET-XRMI Description Overbody Description 0. D. Diagram Sensors @ Delays Length Accumulated Length 40.56 ft 0 2.310 in -11 t- Fishing Neck @ 39.68 It RWCH-12345678 03.625 in -0 6.25 it 0 2.750 in -� 135.00 Ids F� Load Cell @ 36.88 ft F- BH Temperature @ 36.31 ft Weak Point 10000 lbs - 12346678 00.010 In` -0 0.01 Ids 34.31 ft <� Z -Accelerometer LID 33.86 It 0.00 It GTET-12345678 166.00 Ids XRMI-I Instrument - 12345678 290.001bs XRMI-I Mandrel. 12345678 206.00 Ids 0 3.625 in 0 4.500 in 1 05.000 in --- 0. 04.500 In _1 4- GammaRay@28.25ft Pads 2, 4, 6@3.10 ft Pads 1, 3, 5 @ 2.87 ft 8.52 ft 14.30 it 11.1eft 25.79 it tifEklR 0.33 ft Bull Nose -12345678 0 2.750 in -� C 0.33 f1l 5.00 lbs 0.00 It Serial Weight Length Accumulated Mengthap Mnemonic Tool Name ¢d Number (lbs) (ft) (ft) (fpm) RWCH Releasable Wireline Cable Head 12345678 135.00 6.25 34.31 300.00 WP10K Weak Point 10000 Ids 12345678 0.01 0.01 35.11 300.00 GTET Gamma Telemetry Tool 12345678 165.00 8.52 25.79 60.00 XRMI XRMI Navigation - Insite 12345678 290.00 14.30 11.49 30.00 XRMI-I XRMI Imager - Insite 12345678 206.00 11.16 0.33 30.00 BLNS Bull Nose 12345678 5.00 0.33 0.00 300.00 ry 0 U) J W m E , N N a m a m M M e m M a N m o m r o m m m rn N O N N N N N N NO m V N O O O m r d J J J r rr m m 3 W W m ^ W V) W U) W m W m Q oZ N J Z 2 QWQ �a QW �� QW a�WUl Zm KJ KJ wm KJ Wm KJ wN KM wU)m N o y y y zJ- °wao ZJ Ow< zJ Ow< �o C . �y D� d Do 2 Z O d U m a° a° u a00 JUQ JU JU (7J NQ mQ =)o UIQ mQ =10�� UIQ mJ w o m c r m S r Z Z Q Z N m N Z Z Z 2 m Y Y O Y (7 O O 3 O K O r W O z K O W Z x U Q U r U m U < m r J r O m m O o O O O K m Z Z > O N W c g== u Z W a¢ J Z x K a < m d m 3 UI V) O C7 V 0 O W S -Qi W W Q J N O W � K Km v LL 0 a N U Z i g g w 0 �E Y E m O � � m xy u LL � M 4 � M O m m d m c W C7 KU• W U' Ka �a z J W U• KU p W C7 WO W C7 Wo W U' WO WmWJ aW_J J_ 0: m O mz J mz J Oz wJ u)U' mz JJ NC7 az JJ C9 m0 az mz XQJ mz IQ�J mz XQJ mz XQXQJ wr*o U 3a a JJ N Zaaj WOZm W' � Yo w YD (tK LLO 2K a0 �Z 2K do UI 2K O.0 KK YD W S KCL YO KK YD YO w_o3 o M D7 M V M N S 5 w z w z w3 m z 3 m 3 z 3 m 3 m 3 z 3 z 3 w w 3 m V v3 V e3 M aw < M a3 M a3 M aw M vw m m M3 0 z n 0 M r M 0z 7z �z 7!z �ti ul �m �'� - z c2 �N y .-v0i �w < N3 y3 NW W3: omw Nw z ow y3 N Nw Z NW ow Nw ow �m 03 �m ow Em ow -UI ow .-Z o3 03 �Z 03 �Z 03 0 03 �m ow .-N ow m Z.; oW .-y ow wo wo oz oz mm wo mZ Mz m UI U) mm Nm U)Z V!Z 9 U a s a s a s a a a a m a a a 00 d a d a a a a a s 0 a J 00 1 d d I a a IC3 10 10 ry U) J W E N N Y mr ro Q J d NO m N r d `o m m 0 Jig E C N J o p y R Cm E d Y N C . �y C � d 2 Z O d U m 0 u u o o > w o m c Schwartz, Guy L (DOA) From: Paul Mazzolini <pmazzolini@hilcorp.com> Sent: Friday, June 09, 2017 11:22 AM To: Quick, Michael 1 (DOA) Cc: Schwartz, Guy L (DOA); Cody Dinger Subject: Southern Kenai Stratagraphic Test Wells Attachments: Kraxberger Drilling Rig with Cuttings Tankjpg Mike, Good morning. Guy told me he would be out of the office today and to contact you with additional information concerning the drilling and logging of the stratigraphic test wells on the southern Kenai Peninsula. Guy passed along that there is concern with the Commissioners have concerns with the stratigraphic wells as presently proposed. David Buthman, the Hilcorp Geologist is working with Stephen Davies to answer the questions about the possibilities of encountering very shallow gas accumulations. I would like to add some detail to the methodology and equipment that will be utilized to drill the stratigraphic test wells. 1. Equipment on location will consist of truck mount drilling rig, truck with rig support equipment, cuttings tank and 4000 gal water truck. 2. Rig mats will be utilized if the ground does not provide a stable work platform for the truck mount drill rig and support equipment. 3. A cuttings tank will be utilized to capture all cuttings. 4. A rotating head mounted at the drill rig work platform will be connected by a hose to the cuttings tank and directs all returns to the tank. The rotating head contains a pack off which isolates the drill rig from the flow of air and cuttings. The air compressor delivers 900 SUM @ 350 psi for hole cleaning. 5. The rotating head is attached to 6" casing which is set at a minimum depth of 20' (based upon integrity of the formations encountered) to accommodate circulating out cuttings. 6. Portable gas detectors will be placed at the Drillers console and at the cuttings tank. 7. 6" vertical hole will be drilled to 600' (revised from 850' on original Permit to Drill). Hole volume is 21 bbls (882 gal). 8. Hole will be filled with water once drilled to TD. 9. Hole will be logged with gamma ray / resistivity tools and possibly dip meter logging run if required. 10. Hale will be abandoned with bentonite grout plug from TD to surface. 11. 6" casing will be pulled or cut off below ground level to complete the abandonment. 12. Area will be cleaned up to landowner specifications. As mentioned above in #7, Hilcorp is revising the requested TD of the stratigraphic test wells to 600' from 850' in the original Permit to Drill applications. Water wells have been drilled to 680' in the area with no gas encountered and the shallower depth of the wells makes the chance of encountering gas much less probable. Let me know if you have any questions or would like to meet to discuss. Regards Paul I 9� ol hl MMMWIW� IF- FIELD: TRANSMITTAL LETTER CHECKLIST WELL NAME: Z / PTD: Development _ Service _ Exploratory " Stratigraphic Test _ Non -Conventional POOL: 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. Dry Ditch Sample All dry ditch sample sets submitted to the AOGCC must be in no greater than 30' sample intervals from below the permafrost or from where sam les 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. (Companv 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 f � L'�fty �� /�a�(teil�oC /x 14_11_Lcz d lopt. 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 WELL PERMIT CHECKLIST Field &Pool Date. _Wen Name: PEARL 1A_ _ Program 5TR Well bore seg ❑ PTD#.2170790 Company HILCORP ALASKA LLC _ Initial Class/Type STR / PEND GeoArea 820 —Unit On/Off Shore On Annular Disposal ❑ Administration Commissioner: Nonwnven.. gas conforms to AS31.05.030d.1 A),Q.2.A-D) ... NA. Co toner r0 Irk i17 1 Permit fee attached - - - _ . _ .. NA '2 Lease number appropriate.... _ _ _ _ _ _ _ _ .. Yes _ - _ Per the Kenai Borough Parcel Viewer, this is. Fee land owned by H]Icorp - 3 Unique well name and number - . Yes _ - Unique well number; this is not -a-redrill of exploratory well Pead 1 (P.TD #202-011). 4 Well located in defined pool... _ _ _ _ _ _ _ _ _ _ _ .. _ _ _ No. _ _ ... _ Very shallow (600' MD/ TVD) strat test well to validate shallow geologic structure. 5 Well located proper distance from drilling unit boundary _ - _ _ - _ _ _ .. NA... _ _ _ - Well will be located_ about 160' from exterior boundary of. Hilcorp's fee property,. 6 Well located proper distance from other wells - _ NA- - Will lie 2,800' WNW of P&A'd exploratory well Pearl 1. Pearl 1A will lie about. 1,550' from.the nearest - 7 Sufficient acreage available in drilling unit - - - - - _ - _ . NA.... _ _ _ water.well that is registered in DNR's Well Log Tracking System database. 8 If. deviated, is.wellbore plat. included _ _ .... _ - - - _ .... _ NA _ _ ... Vertical well, 9 Operator only affected party . .... . . . . . .... . . . . . _ .. _ .... Yes _ .... Shallow well. will penetrate aquifers, only smallamounts of methane gas expected. Impacted area will be 10 Operator has appropriate bond in force - - - - - - - - - - - - - _ _ _ _ _ _ _ _ - - Yes _ a 35' by 70 drill site located about 140' from property boundary. Appr Date 11 Permit can be issued without conservation order - _ _ _ _ - _ - _ _ - _ _ - Yes SFD 6/12/2017 12 Permit can be issued without administrativeapproval_ _ - _ _ Yes 13 Can permit be approved before 15-day wait . . . . .......... . _ _ _ ... Yes 14 Well located within area and strata authorized by Injection Order # (put. 10# in. comments) (For NA . . . . .......... 15 All wells.within 1/4-mile area of review identified (For service well only). - - - _ .. _ - NA- - - - - - - - - - - - - ------ - - - - - - - - 16 Pre-produced injector; duration of pre production less than 3 months (For service well only) NA...- 18 Conductor stringprovided _ - _ - -------- -------- ------ ---- _. Yes 6 5/8". conductor to be dnven to 150 ft Engineering 19 Surface casing. protects all known USDWs _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA .. ._ ------- _ .. Drilling OH to 600 ft. - Will not.set casing.. Will be filled with grout to surface at P.& A 20 CMT vol adequate to circulate.on conductor & surf.csg _ - ..... _ _ .... _ - - _ - NA........ no surface casing to be run. . . . .. ..... 21 CMT. vol adequate to tie-in long string to surf csg. . . . . . ... . . . . . . ....... . . . . . NA... i22 CMT will cover all known productive horizons- _ - - ....... .... _ NA_ .. - - - At.P &A grout to be placed through wellbore for abandonment. 23 Casing designs adequate for C, T, B R. permafrost_ _ _ _ _ _ _ _ _ _ _ NA No casing run. OH to 600 fl for strat testing.,... 24 Adequate tankage-or reserve pit .... . . . . . ..... . _ _ .. _ _ _ .. _ . - _ NA.. - - - _ . Will use air to drill ....cuttings. to be hauled out.to KGF G_& I.......... 25 If a re-drill, has_a 10-403 for abandonment been approved _ .... _ _ _ .. _ - - _ _ - . NA 26 Adequate wellbore separation proposed. - . _ NA- - Vertical well, No others in area.. 27 If diverter required, does ft meet regulations_ - _ - - - - - _ _ - _ - - _ _ _ _ _ _ _ NA _ _ _ . . . Diverter waived .., to. be drilled with water, well equipment. - - - - - - - Appr Date 28 Drilling fluid. program schematic & equip list adequate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _NA, _ will use, air drilling method-to bring cuttings to surface. Samples every 30 ft. _ GLS 29 BOPEs,. do they meet regulation _ - - _ - _ . - _ _ . NA .. _ _ - _ Well consists of a rotating-head with boey line for cuttings.. 30 ROPE press rating appropriate; test to-(put psig in comments)- _ _ _ _ _ _ _ _ _ _ _ _ NA 31 Chokemanifold complies WAPI.RP-53 (May 84).... _ - .. - . _ NA.... ....... _ .. _ - _ ....... . . . . . . . . . . ... . . . . . . . . 32 Work will occur without operation shutdown _ - _ NA _ - - - .. . - _ Will drill well... fill wellbore with water and log with Eline and have rig come back to. P & A- 33 Is presence of H2S gas probable _ ... , No 34 Mechanical condition of wells within AOR verged (For service well only) . . . . . . . ....... NA 35 Permit can be issued w/o hydrogen. sulfide measures - _ - _ _ _ - _ Yes .... Noneexpectedbased on Pearl. l- exploratory, well, located 2,800' ESE.. Geology ,36 Data.presented on potential overpressure zones _ _ - _ - _ _ - _ _ ..... _ - Yes - None expected..Pearl 1 exploratory well encountered.maximums of 1 unit (200 PPM)methane gas. Appr Date 37 Seismic analysis of shallow gaszones_ ... _ - - _ _ _ _ _ _ _ _ _ _ ... Yes _ _ _ between surface and 855' MD/TVD, 3 units (600 PPM).between 855' and 900' .MD/TVO), and 10 units... SFD 6/12/2017 38 Seabed condition survey-(if off-shore) - - . _ _ . _ _ _ _ _ . . . . . ...... . . . . . . NA... - _ - - _ (2,000 PPM) between 909 and.1000' MD/TVD while drilling with 8.9 ppg mud. Near.surface sediments .... 39 Contact name/phone for weekly_progress reports_ [exploratory only] - - - - - - - _ .. Yes .. _ _ _ _ _ are not expected to-contain laterally extensive, trapping seals, Contact: Paul Mazzolini 777-8369 Geologic - Date. Engineering Date Public Date REVISED APPLICATION: Drilling 6" OH to 600 ft for stratigraphic testing. Using 3 coal bed markers for seismic tie-in. gls Commissioner: Commission r: Co toner r0 Irk Recommend clearly slating within the cover letter that the operator shall not drill below 600' measured depth without prior approval from the AOGCC. SFD 6/12/2017 ; rro�� ronnu r �.nea.nu� r • •�•- u • ��• __ PTD#:2170790 Company HIL ALASKA LLC Initial Class/Type ------ Well Name: PEARL 1A_ Program STR Well bore seg ❑ _STR / PEND GeoArea 820 Unit On/Off Shore On Annular Disposal ❑ Administration 17 Nonconven. gas conforms to AS31.05,030(j.1.A),(j.2.A-D) _ _ _ _ _ .... _ NA Casing designs adequate for C, T, B & permafrost _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA _ _ 1 .Permit fee attached_ _ _ ..... _ _ _ _ _ _ ..... _ _ _ _ NA Willus drill ... _cuttings _to be hauled cut to KGF G_ & I If a re -drill, has a 10-403 for abandonment been approved _ _ _ _ 2 Lease number appropriate_ _ _ _ _ _ _ _ _ _ ...... _ Yes _ Per the Kenai Borough Parcel Viewer, this is Fee land owned by Hilcorp _ _ Verticatwell. No hersmi;Za._ 3 Unique well, name and number .... _ _ _ _ _ .... Yes Unique well number; this is not a redrill of exploratory well Pearl 1 (PTD#202-01 _ _ .. .... NA _ _ . . . . .... NA ',4 Well located in defined.pool_ _ _ _ ....... . . . . . . _ _ _ _ No. _ Very shallow (850' MD / TVD) strat test well to validate. shallowgeologic structure._ Choke manifold complies w/API. RP -53 (May 84) _ _ _ _ _ _ _ _ _ _ 5 Well located proper distance from drilling unit boundary_ _ _ _____ _ _ _ _ _ NA... _ _ Well will be located about .160' from exterior boundary of Hilcorp's fee property... . Will drill well ... log with Eline_a have rig c e back to P & A 6 Well_ _ proper distance.from other welts_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA.... _ Will lie 2,800' WNW of P&A'd exploratory well Pearl 1. Pearl 1A will lie about. 1,550'.from_ the nearest 7 Sufficient acres vailable indnlhng unit. _ _ . . ... .. . . . . .. NA _ water well that is registered in DNR's Well Log. Tracking System database.. 8 If deviated, is wellbore p _" luded _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA _ _ _ Vertical well, 9 Operator only affected party... _ .... .. . . . . . . .... . . Yes Shallow well will penetrate aquifers, only small amounts of methane gas expected. Impacted area will be 10 Operator hasappropriate bond in force _ _ . . ......... . . . . . No...... a 35' by 70 drill site located_ about 140' from property. boundary. Appr Date 11 Permit can be issued without conservation or _ _ _ _ _ Yes 12 Permit can be issued without administrative. approva Yes SFD 6/2/2017 _ _ _ _ _ . . ..... . . . . . . . .......... . . . . _ _ _ _ _ ......... 13 Can permit be approved before 15 -day wait. _ ... ... _ _ _ ...... Yes 14 Well located within area and strata authorized by Injection Order 110# in comments) (For. NA 15 All wells within 1/4. mile area_of review identified (For service well only) _ _ _ _ NA .. _ _ _ _ _ .... 16 .Pre -produced injector: duration of pre -production less than 3 months (FOr serv_ _ well NA. --- 18 Conductor string_ provided ........ _ _ _ _ _ _ _ _ _ _ ...... s _ -- -- -- ... _ _ 6 5/8". conductor to_be driven to 150 ft_ Engineering 19 Surface casing_ protects all.known USDWS _ _ _ _ _ _ _ _ _ .. _ _ _ .... Drilling OH to 850 ft. _Will not set casing... Will be filled with grout to surface at P.& A 20 CMT vol adequate to circulate. on conductor & surf csg _ _ . . . ........ . . . . . . . _ _ _ no surface.casing to be run, _ .... _ _ _ _ _ _ _ _ ........ Appr Date GLS 6/7/2017 Geology Appr Date SFD 6/5/2017 CMT vol adequate to tie-in long string to.surf csg.. . . .. . . . . . . ...... NA _ _ _ _ _ _ ......... CMT will coverall known productive horizons_ _ ......... _ _ _ _ _ _ _ _ NA. _ . _ groutto be placed through wellbore for abandonment. _ _ .... Casing designs adequate for C, T, B & permafrost _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA _ _ _ _ _ n. OH to 850 ft for strat testing._ Adequate tankage. or reserve pit _ _ _ _ _ _ _ _ _ _ _ . NA Willus drill ... _cuttings _to be hauled cut to KGF G_ & I If a re -drill, has a 10-403 for abandonment been approved _ _ _ _ _ _ _ _ _ . _ .. NA_ between surface and 855' MD/TVD, 3.untls. (.600 PPM) between ' and 900 MD/TVD), and 10 units Adequate wellbore separation proposed_ _ _ _ _ _ _ _ .... _ _ NA .. _ _ Verticatwell. No hersmi;Za._ If diverter required, does it meet regulations.. _ _ _ _ _ _ _ _ .. NA _ ... _ . Diverter waived .._ to _ drilledNgth water well equipment. Drilling fluid. program schematic& equip list adequate_ _ _ _ _ ... _ . BOPEs, do they meet regulation .... . . _ _ .. .... NA _ _ . . . . .... NA will use air drilling metho brin cu_tNOgs to surface. ,Samples every 30. ft. Well control waived as _ II is. _ 8_ deep._ _ . BOPE press rating appropriate; test to_(put prig in comments) _ _ _ ..... _ _ _ _ _ _ NA Choke manifold complies w/API. RP -53 (May 84) _ _ _ _ _ _ _ _ _ _ _ _ _ .....NA. r' Work will occur without operation shutdown _ _ _ NA .. _ . Will drill well ... log with Eline_a have rig c e back to P & A Is presence of H2S gas probable _ _ _ _ .. ..... _ _ No. - - - - . . .... . . . . . . . . . ..... . . . . . . . . . ......... .Mechanical condition of wells within AOR verified (For service well only) Permit can be issued w/o hydrogen sulfide measures _ _ _ _ _ _ _ _ _ .. Yes _ _ _ None expected based on Pearl 1. exploratory well, locate . 800' ESE. Data presented on potential overpressurezones _ _ _ _ _ _ _ _ _ ...... Yes _ _ ... None expected.. Pearl 1 exploratory well encountered maximu s of 1 unit (200 PPM). methane gas_ Seismic analysis of shallow gas. zones_ _ _ _ _ ........ _ _ _ _ _ _ _ _ _ Yes .... between surface and 855' MD/TVD, 3.untls. (.600 PPM) between ' and 900 MD/TVD), and 10 units Seabed condition survey (if off-sho(e) _ _ _ _ _ _ _ _ _ _ _ _ ....... NA.. _ ... _ _ (2,000 PPM) between 900' and_ 1000' MOfTVD while drilling with 8.9 mud. Near surface sediments Contact name/phone for weekly.progress reports [exploratory only] _ _ _ _ _ _ _ _ _ _ Yes ...... _ are not expected to contain laterally extensive, trapping seals. Contact: I Mazzolini 777-8369... . I Geologic Engineering Public Drilling 6" OH to 850 ft for stratigraphic testing. Using 3 coal bed markers for seismic tie-in. gls commend clearly stating within I Date: Date Date p p p approval fr the AOGCC. SFD Commissioner: Commissioner: Commissioner the cover letter that the operator shall not drill below 850' measured depth without prior 0SS X1711% n f,In1.