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Home My WebLink About202-194 . . ·r·····················'····· .~,. . ,.(,\....~":., .', '.-; "'~' .., ,: -. ". _. .-" ... MICROFILMED 07/25/06 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFicbe\CvrPgs _ Inserts\Microfil~ Marker.doc ) J Memorandum State of Alaska Oil and Gas Conservation Commission To: Well File: Nicolai Creek 8 Cancelled Permit Action Nicolai Creek 8XX Permit # 202-194 0;~O;;3~~Y d%~ - d-O (0 \ -O~ This memo will remain at the front of the subject well file. September 30,2002 Our adopted conventions for assigning API numbers, permit numbers and well names did not specifically address expired or cancelled permits. This omission has caused some inconsistencies in the treatment of these kinds of applications for permit to drill. Operators have asked us to adopt formal procedures for this class of permit application in order to prevent future database disparities. If a permit expires or is cancelled by an operator, the permit number of the subject permit will remain unchanged. The API number and in some instances the well name reflect the number of preexisting redrills and or multilaterals in a well. In order to prevent confusing a cancelled or expired permit with an active well or multilateral these case sensitive well identifiers will be changed for expired and cancelled applications for permits to drill. The well name for a cancelled or expired permit is modified with an appended xx. These procedures are an addendum to the API numbering methods described in AOGCC staff memorandum "Multi-lateral (wellbore segment) Drilling Permit Procedures, revised December 29, 1995. AOGCC database has been changed to reflect these changes to this permit. CANCELED PERMITS ARE RELEASABLE 2 years from the date on the letter or email received from the operator requesting the permit canceled. (Memorandum January 23, 1997 by Dave Johnston, subject: Canceled and Expired Permits) ~~JrlU~ Steve McMains Statistical Technician w z 3: :J: 0 Z ~ 0 0::> ¡::: P u ~ w 0 ()1 ()1 ., J <:5- --- . f <i 4 .. a ri .~~' ~ SECTION 30 SECTION 31 LEGEND ~ 0 rOUND 1/2 REBAR w/"'CLANE CAP . 5£T 1/2 REBAR W/"'CLANE CAP @ vÆLl -----\ ------- \ - -- - - PAD-LIMITS \ -- \ r \ I \ I \ I \ / \ I ~ NBO"27'19'W \- I GRID N. 2565238.314 284,53' ---------.....: - - - .., I GRID E. 241533. 1 2~ -------., I LA mUDE. 61'00:48.409" \ / LONGITUDE. -151'2724:èL;" WELL fI6 \ SECTION 29 ( ELEV. 33.2 FT. /' GRID N: 2565284 791 \ TÇ)WNSIHP 11 NORTH ' , GRID E. 24162.o.~3~ 886" \ ANGE 12 WEST " 295' FWL . ¥- ~~~'~~~~E6~~~,~Ù22.713" \ ~EWARD MERIDIAN. AK - ) .' ELEV. 33.6 FT MLLW - - - - - - - -- ' WL \ ---- / 261 F L______--- ( 209' FWL ~'WELL #9 186'FWL .., GRID N:2565, 248.120 'AIRSTRIP I GRID Eo241585.~26 " - - - - -- ! LATlTUDEo 61"00 48.~'7 2" - - - - - - 0 LONGITUDE. -1512723.40 - - - - -- I ~ ELEV. 32.9 FT. MLLW - - - - - -- I ~ PAD LlMIT~ - -c-- - - - /,.J ---- I,a - ---- ~ --- --~Q - --------- C-=--------- .. NOTES 1) BASIS OF COORDINATES IS ALASKA STATE PLANE NAO 27 ZONE 4. AND IS rROM A DIRECT TIE TO ADL NO. 312'°. 2) BASIS OF ELEVATION IS rRON DIRECT TIDAl OBSERVATION ON 9-22-93. DATU... IS t.tLlW. AlL ELEVATIONS SHOWN HEREON vÆRE TAKEN ON GROUND. 3) SECTION LINES SHOWN HEREON ARE BASED ON PROTRACTED VAlUES. 4) BEARINGS SHOVtN HEREON ARE GRID. WELL #1 GRID N: 2565238.429 GRID E: 241509.651 LA TI TUDE: 61 '00' 48.405" LONGITUDE: -151'27'24.935" ELEV. 32.5 FT. MLLW 1999' FSL 2010' FSL 1999' FSL 2048' FSL SECTION 29 SECTION 32 PROTRACTED SECTION CORNER GRID N: 2563243.909 GRID E: 241284.057 LATITUDE: 61'00'28.720" LONGITUDE: -151'27'28.610" SECTION LINE S88"44' 34"E fý:{1'7fî¡ :::...;~, ""~,-:..'j- ~~~:.~~~ ¡!./j" 'I ~.t'..: ':~. .....- 1"'1 ~~,\,\~,,~I:~ >- .. ~ a I:- ~~ ~~ ~s ,t! ~z gã < Co > 0: NN 00 " "'N NN ,..... -.. 0 ... N 0 g C'i~ ó- ~ .... z ð~~~ <a..~o ~o~~! ~ z o~ ..... « -.:.. ~a:jN :...,.I " 0 ? ~ O~ Z " § g ::; ... -< 0 CJ C>. ;!; ::¡ ~'" '" """ \ÿ \:n ~! .~ $ ~~.. ~ ~ gg~ ~ ~9~ \j ;!;ON ~~ ~:~ t: <!.~~ j ~ð \.) ø:OJ ¿ ~ô ~Cl ORAYofo BY LSC CHECKED BY PCO HORZ. SCALE I" . 60' vERT. SCALE N/A ORWC. ND.02J102 SHEET 1 PI- • • P� "o 2 0 Regg, James B (DOA) From: AK, OPS FF Well Ops Comp Rep <AKOPSFFWellOpsCompRep@bp.com> Sent: Monday, April 30, 2018 2:05 PM To: Regg, James B (DOA) e f� G1*8 Cc: Pomeroy, Glen;AK, OPS FF Well Ops Comp Rep Subject: FW: PBU P1-08A Deficiency Report Attachments: IMG_8341 jpeg; 1472_001.pdf Jim, Enclosed is a photograph of the installed new Well House sign with the accurate bottom hole locations and nomenclature. The signed Deficiency report is also attached. Please call with any questions that you may have. Vince Vince Pokryfki Field Well Compliance Advisor BP Exploration (Alaska) Inc. PBOC - B103 Office: (907)659-5332 Cell: (907)354-1352 SCANNED ; Harmony-7187 Alternate:Lee Hulme From:AK, OPS LPC DS Ops Lead Sent: Monday,April 30, 2018 9:21 AM To:AK, OPS FF Well Ops Comp Rep<AKOPSFFWellOpsCompRep@bp.com>; AK, OPS GPMA Field O&M TL <AKOPSG PMAFieIdOMTL@bp.com> Cc: Cook, Guy D (DOA) (guy.cook@alaska.gov) <guy.cook@alaska.gov> Subject: RE: PBU P1-08A Deficiency Report Vince, I have attached a picture of the sign installed and a signed copy of the deficiency report. Let me know if anything is needed Thanks Brent From:AK, OPS FF Well Ops Comp Rep Sent: Monday,April 16, 2018 12:32 PM To:AK, OPS GPMA Field O&M TL<AKOPSGPMAcField OMTLPbp.com>;AK, OPS LPC DS Ops Lead 1 .^��r 1 • • State of Alaska Oil and Gas Conservation Commission Deficiency Report Location: PBU P1-08A Date: 4715/1 PTD: 2021990 Operator: BP Exploration Alaska Type Inspection: SVS Operator Rep: Lee Hulme Inspector: Gov Cot}k Position: Well Ops Compliance Op.Phone: 659-5332 Correct by(date): 5/01}16 Op.Email: lee.hulme@bp.corn Follow Up Req'd: YES Detailed Description of Deficiencies Date Corrected Incorrect well identification sign on weflhouse. Please refer to MC 25.040 of the Alasiq Oil and Gas Laws and Regulations l ee414. _. ._ �'241 Attachments: Signatures: Operator Rep w- AOGCC Inspector *After signing,a copy of this ft*m is to be left with the operator. Follow-up Instructions Return a copy of this Deficiency Report to AOGCC(Attention:Inspection Supervisor)within 7 days of receipt. include the"Date Corrected"and attach supporting documentation for each corrective action implemented to address the deficiencies. if a follow-up inspection was performed by AOGCC,include the date and name of Inspector. Extensions for corrective actions taking longer than the"correct by"date must be requested and accompanied by Justification(Attention:Inspection Supervisor).Documentation of deficiences that are outside of AOGCC regulatory jurisdiction will be forwarded to the appropriate authority for follow-up action. (0/6\17\ 0i6\'\ ) Revised 2/2016 ,..... ........, . . • .,...,,,,• • . , ... .,.. ,- .),., . . ,... ..r =. , , .,. • s : .„, , . ..,. —, .4. .., I a . ...- $ I • • . 4')," • " k.3"-• .. .: . . 041° !'4 I' • , . • " ,. ',OM: • • -' ,' . ,• t''li'..`1.T .' . ' ,,,• ' 1.7.1... . •,-", 4'. . . .• ?, . • ' • ..6 •. .. v . r , .• • ' . • ' i- 0.,..' "v. ..• . . .„ . ,•n1 * ., '..' . • . "4 • • .. . . .I. • .14 :a* ar ..— • . •,. ., ) ..,4S. ' 1• ' l . ' • ._ ... ... WEL! • P1-08A 1.i:oh. • , 4 111 ' 16 - • , • ; .. tr .. !h ,.•:'.°' (4 4,1 .9;4,1,.... . iVt*fi P,.fli lAck‘iyre Urxt i i...v.,:, 'l 7. lie i.O.' 1 • 1 . , OPERATOR tiP(miwoulirm .$1141.14,.4)06. ,it ,,, API NOMEIET1 SO-02'9-22394-91-00 . --" 1 ., ..., .,.,..4• sun LOCATION SE 1 4,Sec.16,T1 - / ..214.914E . -.^ I . .i.7^0,,If7S.,.. "• , DRSLIANG 1211 TWIT 2C2-199 ,....1.....:PN,..144. • i '1, 5,.. o,.. 4.''' ' . •I'Y air**:j .s,; , z .., ,,,..,•if .41 .°P14i'‘/6:•,.:;4 :: ‘ ..., 1 '..r•I ref:f.'''',„.-;b,0• "''....”. ., i 4 f , • -, ' I :."It'' ,,-4..ity 4,---...:.. .• :44...„:..,,,. • ..•..,• • • ..... . ,.. .. . . . • . , ',. .:::,-..,4--io•,....,...,....,ft.......-.....: .., :.: .b.tver.7,,„:.-.' , i :.:,!-',..,(1‘,„',1...,7.1.7-2....4...-f"...•;,;:i • :::„., .. ,, .. -M-tukrk. " . . ., ..,„, . . .. . - i ,,,_,,,,,..,, , -,-„,‘ ,-,..t. • .-4,:ce,•,„,,,,,..,.. , 0'.',..':. : .• .•• •- "•.,, ,.,,,-•: .1,. ', '.:. - .-',.,_. ..._ ', - - • 1 -..... .•.,,, !ii.„.'' ''..,••• ,:r- ; '.',.. -..,,, ;.:',.- . ...,'L.',.:-..;•--'.-:::, - -„. ••••.M..4`.,'f•-,,I..,,,..,..'..." • • „ill . , P-•-.-1•40-,A:-.....s;. •.- • .-". -, '.,,' . :„' i s.-',f., * ••-•"- -- "4' - ri-.,,,,,,,tfi,‘‘..-.", • i ci$i":1:9.!:..'b.„. , • •• : ',•',': ••• •, !r - - - ' . 1 iA„,,..,ffiiti..'. A... ' ' '. ' .. .;.t • 4".-Te A "A 1 .1".4...4t, . ,-,g•Aefi 414.1111k4.4":.!:,i:i,. •, ',.' .,,''• ' .. • ,••• ___1,„,,, —11 • l ' -*,'d.t•PA' S'OEP., Ir-i.•-.'':-....— v*.7 -.,.:'.•'' . . . ... '. ',;.." ' . . • ....1.7,-..,:`,L,:•14 ''. .)0 • " 1 • ' ..-•4-3,10.1.0?" . ., .1t---i• ..rj,•1•.*••.1)....:-..., .r.. . • • . . .' . 1 ' • .." .17'.if•P,'•r•- ,. .... .....-. • • • __I I •'' • lkittzt„ ; .:46.,....,...,:... - . ..* ,,...,:t. , ..„... , . 1 ~ !Aurora Gas, I.I.C www.aurorapower.com 30-September-2002 Mr. Tom Maunder P .E. Senior Petroleum Engineer 333 W. 7th Ave., Ste. 100 Anchorage, AK 99501 Re: Well name change, Nicolai Creek No.8 to Nicolai Creek No.9. Dear.Mr. Maunder: Please fmd attached a new AOGCC Form 10-401 Permit to Drill application. This form is being submitted as a result of our having to move. the surface location of the Nicolai Creek No.8. While driving the conductor for the Nicolai Creek No.8, refusal was reached at,...., 57', which we considered to be too shallow. The conductor was pulled and the rig moved exactly 7 feet due east. Upon inspection, it was revealed the drive shoe had collapsed, probably from a boulder. A new drive shoe was installed and the 133/8" conductor was driven to refusal at 99 feet. A phone call to your office indicated that because of the change in our surface location, it would be necessary to file a new PTD application and change the name of the well. Because of the minimal change in surface coordinates (7 feet), Aurora Gas wishes to work under the already approved drilling program and permit issued for the. Nicolai Creek No.8, only we will now call the projectwell, Nicolai Creek No.9. The new surface coordinates are indicated on the attached Form 10-401 being. submitted. Please find attached a plat map indicating the relationship of the NC No.9 with respect to the originally proposed NC No.8 and other wells already on the site. Well No.6 is P&A'd. Please do not hesitate to call the undersigned at (713) 977-5799, or Duane Vaagen at 258-3446 with any questions or concerns. - Sincerely; J. Edward Jones Executive Vice President Aurora Gas, LLC Attachments: cc: Duane Vaagen (Fairweather E&P Service, Inc.) RI€&tVED OCT 0 4 2002 A1asRa 01& Gas Cons. commtsston Anchomge 10333 Richmond Avenue, Suite 710. Houston, Texas 77042. (713) 977-5799 . Fax (713) 977-1347 1029 West 3rd Avenue, Suite 220. Anêhorag~'r~!'t~¡99~01. (907)277-1003. Fax (907) 277-1006 ;"- " .' , : I,.;. ,J f ¡. \," : ) ~~~iŒ illJ ) !Æ ) ~~« Œ) LJU TONY KNOWLES, GOVERNOR AI1ASIiA OIL AND GAS CONSERVATION COMMISSION 333 W. 7fH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 J. Edward Jones Vice President Aurora Gas 1029 West 4th Avenue Anchorage AK 99501 Re: Nicolai Creek Unit 8 Aurora Gas Permit No: 202-194 Surface Location: 2012' FSL, 249' FWL, Sec. 29, T11N, R12W, SM Bottomhole Location: 2012' FSL, 249' FWL, Sec. 29, T11N, R12W, SM Dear Mr. Jones: Enclosed is the approved application for permit to drill the above development well. This permit does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or thé terms and conditions of this permit may result in the revocation or suspension of the permit. The permit is approved subject to full compliance with and Conservation Order 478. This well may not be placed on regular production until the Commission takes additional action, upon petition, and after notice and hearing, to offset any advantage a landowner or owner may have by reason of the Nicolai Creek Unit Well No.8 having been drilled to the exception locations. Aurora Gas requested 2 waivers to AOGCC regulations for drilling this well. The request for exception to 20 AAC 25.030 (t) to only drill 10' of new hole below your 9-5/8" surface casing is granted. The request for exception to 20 AAC 25.035 (c)(1)(A) to drill a surface hole size larger than the diverter line size is denied. No "grass roots" well has been recently drilled from that site and a gas event was noted when the Nicolai Creek # 1 was drilled. Blowout prevention equipment (BOPE) must be tested in accordance with 20 AAC 25.035. Sufficient notice (approximately 24 hours) of the BOPE test performed before drilling below the surface casing shoe must be given so that a representative of the Commission may witness the test. Notice may be given by contacting the Commission petroleum field inspector on the North Slope pager at 659-3607. Sincerely, ~. ~~ C~Chsli Taylor Chair BY ORDER OF THE COMMISSION DA TED this.Æb. day of September, 2002 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental.Conservation w /0 encl. ) ~.urora Gas, I..I..C wwvv.aurorapower.com 1 7 -September- 2002 Mr. Tom Maunder, P.E. Senior Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Ste. 100 Anchorage, AK 99501 Re: Request for Waiver of Drill-Out requirement for Formation Integrity Test. Dear Mr. Maunder: This letter is in response to an email that was submitted to Fairweather E&P and Aurora Gas, LLC., regarding the Permit to Drill Application submitted for the Nicolai Creek No. 8 well. A concern was expressed about the amount of hole drilled prior to performing a ,FIT. At this time Aurora would like to request a waiver of the drill-out requirements as stated iriI20 AAC 25.030 (f)]. Aurora hereby requests permission to drill only 10' of new hole belbw the shoe of the 9 5/8" surface casing prior to performing the formation integrity tu't as required. Regulations require between 20' - 50' of new hole be drilled. This waiver is being requested for the following reason: Based on information gained from the drilling records for the NCU 1, the NCU 2 and the NCU 6 wells which are in close proximity to the proposed NC No.8, there appears to exist a possible over pressured coal seam directly below the shale where the 9 5/8" surface casing will be landed and cemented. Aurora is currently in the process of obtaining wireline logs to determine the exact depth and thickness of this shale (old mud logs indicate the bed to be approximately 40' - 50' thick). Zones immediately above the shale appear to be gravels, sands and coals. 10333 Richmond Avenue, Suite 710. Houston, Texas 77042. (713) 977-5799 . Fax (713) 977-1347 1029 West 3rd Avenue, Suite 220. Anchorage, Alaska 99501. (907) 277-1003. Fax (907) 277-1006 ') ') To accomplish a successful cement job, ensure zonal isolation and minimize the risk of potential well control issues, it is important that the casing be landed and cemented in uppermost region of the shale bed. Due to the constraints offered by the thickness of the bounding shale, permission is hereby requested that the drill-out prior to performing the formation integrity test be limited to 10' maximum. Sincerely; . Edward Jones Executive Vice President Aurora Gas, LLC Attachments: cc: Duane Vaagen (Fairweather E&P Service, Inc.) ) .) ~Aurora Gas, LLC www.aurorapower.com 1 7 -September-2002 Mr. Tom Maunder P.E. Senior Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 W. ih Ave., Ste. 100 Anchorage, AK 99501 Re: Response letter to AOGCC email dated 15-Sept-2002 concerning NC No.8 PTD. Dear Mr. Maunder: This letter is in response to an email that was submitted to Fairweather E&P and Aurora Gas, LLC, regarding the Permit to Drill Application submitted for the Nicolai Creek No. 8 well. Aurora would like to respond to the eight concerns expressed in the email as they appeared. Concern 1: The original intent was to drill to 2500' MD and OH log the entire interval prior to setting casing at r-J 2300'. This was proposed to gain information on a couple of sands that would be encountered. These sands are intercepted in well No. 1B as well, but at an angle and some distance away. Based on information recently gained in the redrill ofNCU 1B, it has been decided that we only need to drill to 2350' MD. The 7" production casing will be landed and cemented at r-J 2300', as originally proposed. Concern 2: We are currently waiting on information from an up-hole GR log of the NCU IB well to determine the exact 95/8" surface casing string set depth to be used for the NC No.8,. According to old mud logging records gained in the drilling of the offset wells NCU 1, NCU 2 and NCU 6, there is an impermeable shale bed overlying the coal which is believed to be over pressured. This shale bed appears to offer the sealing mechanism for the underlying coal. It is our intent to penetrate the top of this shale, and land the 9 5/8" casing there. There should then be sufficient room to drill out 10' and perform a (14 ppg mud weight equivalent test). A letter requesting a waiver of the standard 20' - 50' drill-out requirement and permission to drill only 10' before performing the formation integrity test accompanies this document. Concern 3: A letter requesting a waiver of the diverter line size requirement is attached. We will request permission to use the single 10" diverter line. Concern 4: We will conduct the BOPE tests as on previous wells NCU 2 and NCU lB. We will test all to 2500 psi. The casing strings will be tested to 1500 psi. 10333 Richmond Avenue, Suite 710. Houston, Texas 77042. (713) 977-5799. Fax (713) 977-1347 1029 West 3rd Avenue, Suite 220. Anchorage, Alaska 99501. (907) 277-1003. Fax (907) 277-1006 ) ') Concern 5: Based on well records from offset wells NCU 1, NCU 2, NCU 4 and NCU 6, it appears they did use a 13.5 ppg mud at one point. There was also mention of running mud weights as high as 13.24 ppg at 6000' + with no adverse effects other than stuck pipe. There is no mention of ever losing circulation with this mud weight, and it appears there was no need to go above this weight. Aurora intends to perform an equivalent mud weight test. The goal is to achieve a 14.0 ppg equivalent mud weight test. It is also anticipated that mud weights should not be required in excess of 12.5 ppg, but weighting materials will be ready should the need to do so arise. In the event we fail to achieve the 14.0 ppg equivalent mud weight, we propose to use a technique used in the Gulf of Mexico, and perform an OR squeeze with a light weight cement slurry (fine sand mixed in as proppant) into the formation below the shoe to increase the mud weight equivalent and decrease the fracture susceptibility. Concern 6: Based on historical well date, again from the offset wells NCU 1, NCU 2 and NCU 6, there is no record of lost circulation. As indicated in the email, mud properties should and will be monitored carefully. Concern 7: Yes the step to change over to 7" rams was omitted (step 15). The ranis are on site and will be changed out prior to running 7". Concetn 8: We will use 2 7/8" tubing for a production string and workstring where warranted. The reference to 23/8" tubing was a typographical error, sorry about the confusion. Sincerely, fr J. Edward Jones Executive Vice President Aurora Gas, LLC Attachments: cc: Duane Vaagen, Fairweather E & P Services ) ) ~Aurora Gas, LLC www.aurorapower.com 17 -September- 2002 Mr. Tom Maunder P.E. Senior Petroleum Engineer Alaska Oil and Gas Conservation Commission 333 w. ih Ave., Ste. 100 Anchorage, AI( 99501 .f! 7' l'" nO~2 § ¡ L(JJ ,,,, Re: Diverter line size waiver request. Dear Mr. Maunder: This letter is in response to an email that was submitted to Fairweather E&P and Aurora Gas, LLC, regarding the Permit to Drill Application submitted for the Nicolai Creek No. 8 well. A concern was expressed about the 10" diverter line size proposed. At this time Aurora would like to request a waiver of the diverter line size requirements as stated in [20 AAC 25.035 (c)(l)(A)]. Aurora intends to drill a 12 ~"hole and install 9 5/8" surface casing. Based on regulation, one would need a 12 ~"minimum ID diverter line. This waiver is being requested for two reasons, the first being offset well history and the second being equipment availability. Offset Well History: Based on drilling records of offset wells NCU 1, NCU 2 and NCU 6, the zones to be drilled through do not pose a significant well-control risk. Aurora intends to cease drilling operations and run casing and install blow-out prevention equipment before encountering potential pressure zones. There is a shale bed, the exact depth and thickness of which will be determined by GR logs currently proposed on the nearby NCU 1B well, which will defme the total depth to be drilled for the surface casing. According to offset well records, only slight gas shows are evident and the source appears to be shallow coals and sands, with no clearly defined trapping mechanism that would warrant an overpressure zone to be encountered. Based on historical well information, the drilling of a pilot hole is not necessary, as sufficient data exists for the interval to be drilled in a safe manner [20 AAC 25.035 (c)(l )(B)]. 10333 Richmond Avenue, Suite 710. Houston, Texas 77042. (713) 977-5799. Fax (713) 977-1347 1029 West 3rd Avenue, Suite 220. Anchorage, Alaska 99501. (907) 277-1003. Fax (907) 277-1006 ) Equipment Availability: At this time there are only two different spools available for use with this diverter. One is a 10" (as proposed), and the other is 21-1/4", which is not acceptable for use with 13-3/8" conductor. The only alternative at this time is a modification of the 13 5/8" X 13 5/8" X 10" drilling spool. Sincerely; [þ~ J. Edward Jones Executive Vice President Aurora Gas, LLC Attachments: cc: Duane Vaagen, Fairweather E & P Services Logging Program for NCU8 ) Subject: Logging Program for NCU8 Date: Fri, 13 Sep 2002 14:37:53 -0500 From: "Andy Clifford" <acc1ifford@aurorapower.com> Organization: Aurora Power To: <steve - davies@admin.state.ak.us> Steve, Our current plans re-Iogging at the NCU#8 well, subject to review of the currently logging NCU#1 B is as follows: . Mud logging unit (basic mud logging, monitoring gas in mud-units + components, mud density, mud salinity, penetration rate, and H2S [none expected] and sample description); . Wireline logs: PEX-AITH (induction, SP, GR, CNL, FDC), GR-DSI (Sonic), and FMI from TD to casing window. . Run RST -GR log from window to surface (in both sigma and CO modes). Hope this helps. Call me if you have any further questions and I'll forward the NCU#1 B log data ASAP. VP Exploration Aurora Gas, LLC ') ~Aurøra Gas, LLC September 4,2002 Ms. Cammy Oechsli Taylor, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: Nicolai Creek No.8 Dear Ms. Taylor, Aurora Gas LLC, hereby applies for a Permit to Drill, for the proposed Nicolai Creek No. S gas well. The Nicolai Creek No. 8 wel~ will be drilled vertically, and will be located onshore Granite Point, in the Nicolai Creek gas field. The well will be approximately 11 miles Southwest of the village ofTyonek. Aurora plans to begin drilling operations on September 14th, 2002. Because of the proximity of the NC No.8 well with respect to nearby wells at surface and subsurface, a Spacing Exception Order is required, the application of which has already been submitted under separate cover. Upon receipt of all necessary permits and approvals, contractors will move the rig ITom the NCU IB well and begin NC No.8 drilling operations. Pertinent information in and attached to this application, includes the followmg: 1) 2) 3) 4) Form 10-401 Application for Permit to Drill- 3 copies. Fee of$lOO.OO payable to the State of Alaska. A plat map and information detailing the surface location per 20 AAC 25.050 (c)(2). Proposed well will be vertical, so BHL will be the same. Diagrams and description of the BOP equipment to be used as required by 20 AAC 25.035 (a)(I) and (b). The proposed casing program as per 20 AAC 25.030. The drilling fluid program, in addition to the requirements of20 AAC 25.033 are attached. A copy of the drilling proposal. 5) 6) 7) ') I,., ) Ms. Taylor Page 2 8) 9) A Summary of Drilling Hazards. Pressure Information Aurora Gas LLC. does not anticipate the presence ofH2S in the formation to be encountered in this well. However, H2S monitoring equipment wilt be functioning on the rig at all times during sidetracking, drilling and completion operations. While this well is considered a development well, basic mud logging will be performed while drilling to aid in tracking the location, thickness and quality of the intervals penetrated. The following are Aurora Gas LLC' s designated contacts for reporting responsibilities to the Commission. 1) Completion Report (20 AAC 25.070) Duane Vaagen, Project Engineer (907)258-3446 2) Geologic Data and Information Andy Clifford, President (20 AAC 25.071) (713)977-5799 3) Well Records, Testing and Production Reporting (20 AAC 25.070) Ed Jones, Executive Vice President (713)977-5799 If you have any questions or require additional information, please contact the undersigned at (907)277-1003, or Duane Vaagen at (907)258-3446. Sincerely, AURORA GAS, LLC 1+ Ed. Jones Executive Vice President / Production Manager Enclosures cc: Duane Vaagen Andy Clifford Weight 54.5 36 23# STATE OF ALASKA ALASKA ""ll.. AND GAS CONSERVATION COM..~.SSION ,J PERMIT TO DRILL } 20AAC 25.005 [ ] Redrilll1b. Type O.fwell [ ] S.ervice [X] Developmen. t Gas [ ] Single Zone [X] Multiple Zone [ ] Deepen . . [] Exploratory [ ] Stratigraphic Test [ J Development Oil Aurora Gas LLC. 5. Datum Elevation (DF or KB) 10, Field and Pool 36' AMSL (OF) Nicolai Creek Gas Field 6. Property Designation AA-842($ 7. Unit or Property Name Nicolai Creek Gas Field '8. Well Number Nicolai Creek Nq. 8 9. Approximate spud date 14-Sep-02 14. Number of acres in property 15. Proposed depth (MD and TVD) 1738 Acres . 2500' MD & TVD 17. Anticipated pressure {;ee 20 MC 25.035 (e) (2)} . Maximum surface 1025 psig. At total depth (TVD) Setting Depth Top Bottom MD TVD MD TVD 0 0 -80' -80' 0 0 620' 620' 0 0 2300' 2300' ~(\ '\ . 1 a. Type of work [X] Drill [ 1 ~e-Entry 2. Name 'of Operator 3. Address Resolution Plaza Suite 710 Anchorage, Alaska 99501 4. Location of well at surface 2012' FSL, 249' FWL, Sec29, T11N, R12W SM ASPX 241573.094, ASPy 2565250.279 At top of prOductive interyal 2012' FSL, 249' FWL, Sec 29, T11N, R12W SM At total depth 2012' FSL, 249' FWL, Sec 29, T11N, R12W SM 11. Type Bond (See 20 MC 25.025) Letter of Credit Number NZS 429815 Amount $200,000 12. Distance to nearest property line -100' 16. To be completed for deviated wells Kick Off Depth N/A 18. Casing prográm Size Hole Casing Driven 13 3/8" 12,1/4" 9 518" , 8 1/2" 7" 113. . Distance to nearest well -38' Maximum Hole Angle 1100 psig Specifications Grade Coupling K-55 Welded K-55 l TC J-55 LTC Length -80' 622' 2302' Quantity of Cement (include stage data) No cement, drivèn . 74 Bbls (415 ft3) 44 Bbls (247, ft3) 19. To be completed for Red rill , Re-entry, and Deepen Operations. Present well condition summary Total depth: measured true vertical Effective depth: measured true vertical feet feet feet feet Plugs (measured) Junk (measured) Casing Length Size Cemented MD TVD Structural Conductor Surface Intermediate Production Liner Perforation depth: measured true vertical [ X] Filìng Fee [ X] Property Plat [ X] BOP Sketch [ X] Diverter Sketch [ X] Drilling Program [ X] Drilling Fluid Program [ ] Time vs Depth Plot [] Refraction Analysis [ ] Seabed Report [ ] 20AAC25.050 Req. Contact Engineer Name/Number: Mr. J, Edward Jones (907)277-1003 Prepared By Name/Number: Duane H, Vaagen (907)258-3446 21. I here¡y ce' that e foregoing is tend correct to the best of my knOWI.edge Signed I / ' /J . c¡ / LI ~ Title V / é~ l/r~ II At"rJ f Date -~ 7j ()2-- Commission Use Only Permit Nu r f lAP mber I ~J3~~D e I See cover letter '2.0 Z - /9'. .5'"0 ~- 2ß"3 - 2. C> i 0 I - 06 '1?':!.~ fJ;;;>-- for other requiremen~ Conditions of Approval: Samples Required: [ ] Yes ~No Mu Log Required Ç<J Yes r <f No Hydrogen Sulfide Measures: [ ] Yes WNo Directional Survey Req'd )çf'Yes L J No Required Working Pressure for BOPE: [] 2M, [] 3M, [] 5M, [] 10M, [] 15M . Other: ';)SG Õ ~ ~\ ~(J-ç> ~~">~ Gnglnal Signed By Approved By Cammy 0echsIi Tayler Form 10-401 Rev. 12-01-85 20. Attachments Commissioner by order of the commission Date~~;l s~í~~Íicate ...-. ~ w:: Z 0 - L.() --1 - ex:> z p 0 ..- - 0 I- if) U W if) ------\ r-------------PADuMn-s \ / \ / \ / \ / \ . / \ / N80027'19''W \\ I 284.53' ~-- I -, ( PROPOSED WELL #8 ", GRID N: 2565250.279 \ GRID E:241573.094 ) LA TITUDE: 61'00'48.536" / 249' FWL LONGITUDE: -151°27'23.653" ( ~LEV. 32.9 FT. MLLW I 01 I I : ---~~~~~~~--------------- C~~~~---------------------- 2012' FSL \ \ \ \ \ \ \ L______----- AIRSTRIP ~ SECTION 30 SECTION 29 SECTION 31 SECTION 32 SECTION LINE S88°44'34"E PROTRACTED SEC~ON CORNER GRID N: 2563243.909 GRID E:241284.057 LA TITUDE: 61"00'28.720" LONGITUDE: -151'27'28,610" LEGEND AND NOTES () FOUND 1/2 REBAR W/MCLANE CAP . SET 1/2 REBAR W/MCLANE CAP @ WELL ~ """\'" ..."'~ OF A' f, ..'" ~~.,....,.., ~,..< r\ I' -, ~~,., *"~..L. I - 0 .. ~.'.y I : * :'" 49 IIi "'. * ~ ~"12 :'~i1 e a" '¿' '-' -; ~ "f.~....",.,,~ , ~ ',PAUL C. OSTRANDER: ff -- I <:;. " ." W .. I V'A "'. 10158-5 .... cF - I ~ 'S/./ '0.::5-, 'I ~ð /:1. :¡. ~~fC:>'Z.~~Ç) .: , t. ~OF"£ss IONÞ.\. \.. ~... ,\\\\."" ~ SCALE 1" = 100' AURORA GAS, LLC NICOLAI CREEK UNrT NO. 2 WELL NO. 8 SURFACE LOCATION -------- 1) BASIS OF COORDINATES IS ALASKA STATE PLANE NAD 27 ZONE 4, AND IS FROM A DIRECT TIE TO ADl NO. 31270. 2) BASIS OF ELEVATION IS FROM DIRECT TIDAL OBSERVATION ON 9-22-93, DATUM IS MLLW, ALL ELEVATIONS SHOWN HEREON WERE TAKEN ON GROUND. 3) SECTION LINES SHOWN HEREON ARE BASED ON PROTRACTED VALUES. 4) BEARINGS SHOWN HEREON ARE GRID. 8UWEYED BY: ~ Consulting c:;"roup ~ Testing Prepared For: Aurora Gas, LLC 1029 W. 3rd Ave. #220 Anchorage, AK 99501 Engineers, Surveyors and Planners P.O. Box 468 Soldotna, AK 99669 August 14, 2002 Date: ------------- 023102 Job No: ------------- 96-28-31 Field Book No.____----------- ) ') Drilling Program: Nicolai Creek No.8 1. 2. 3. 4. 5. 6. 7. 8. 9. 9. 10. II. 12. 13. 14. 15. 16. 17. 18. 19. File and insure all necessary permits and applications are in place. Install drive shoe and drive (new) 13 3/8" 54.5 #/ft, K-55 conductor to ~ +80 feet. Rig up diverter (see attached diagram) and mud loggers. Test and calibrate all PVT and gas sensor equipment. Prepare mud system, weight up to ~9.0 ppg. Drill 12 ~"hole to ~620 feet, using 12 ~"mill-tooth bit with 6 %" stabilized BHA. Watch for gas in shallow Goals and sands. Increase mud weight as {leeded to 9.5 ppg. Run and cement (new) 9 5/8" 36 #/ft, K-55 LTC surface casing at 620' and cement to surface. Shoe joint connection at shoe and float collar must be Baker- Locked. Cementing will be single stage with float collar and shoe installed. RU and test 11" 3M BOP stack and 5M choke manifold (see attached diagram). Test stack and surface equipment to 2000 psi. Pressure test casing to 1500 psi. or as required on approved permit. PU 8 ~" mill-tooth bit, RIH with 6 %" DC's and 3 ~" DP to float collar. Drill out float equipment and shoe. Drill ~5' OH. Pull back into shoe and perform LOT, record results. Condition and circulate mud system, build mud weight to 12~5 ppg., and be prepared to weight up more if required. Do not exceed fracture gradient determined in step 8! Proceed to drill ahead, 8 ~"hole. Monitor well and voll1111es carefully when drilling into overpressured coal at ~ 700'. Be prepared to shut well in and weight up immediately if flow or excessive gas build up in mud is noticed. Drill to TD at 2500 feet maximwn, depending on lithology encountered. Short trip and condition hole as needed for running wireline logs. POOH, rack back drillstring and RU wireline. RIB with wireline and log well. RD wireline, RIH with drilling BHA as before to TD. CircüIãte and condition hole for running casing. INSURE all cementing equipment, casing accessories, and casing running equipment is on location and functional. POOH, LD BHA, rack back DP. RU casing equipment I crew, make up shoe joint with shoe and float collar, baker- locking both to joint during make-up. RIH with (new) 7" 23 #/ft 1-55 casing, installing centralizers per attached program. Run casing to ~2300', or as determined by OH logs. Keep pipe moving when casing is at TD and while waiting for cementers to get hooked up. RU cementers, cement per attached BJ Services cementing program from TD ..... - - back to surface. While pwnping cement, reciprocate pipe a minimwn of 20 feet until dlSplâëëment is finished. Land casing and WOC. RD cementers, check annulus and casing for pressure. Nipple down stack and cut casmg. Install 11 " X 7 1/16" tubing head, 7 1/16" X 11" DSA, mud cross and reinstall BOP stack. Pressure test BOP and surface equipment to 2000 psi, or as required in approved drilling permit. Pressure test casing to 1500 psi. PU casing scraper and RIH with DP to top of float collar. Circulate out mud and cement with high- ) ) 27. 28. VIS sweeps as necessary. Swap mud system over to clean KCl. POOH LD DP and casing scrapet. RU lubricator for wireline work. Change out 3 ~"pipe rams with rams for 2 3/8" work string. Pressure test all. PU perforating guns and RIH to depth as determined from OH logs and perforate. Watch for pressures in casing after shQoting. POOH" LD perf gun. RU and RIH with test packer on workstring. Connect to surface flow test equipment. Swab in well for flow test, record results. Kill well. Repeat steps 21 and 22 until sufficient intervals have been penetrated for production. POOH, RD wireline. Prepare completion assembly. Pick up and assemble packer, screen and completion assembly. RIH and hang off (depth to be determined by depth Qfperforations). POOH with workstring, RIH with production tubing, space out and stab into packer, hang off in tubing head. Pressure test tubing to 2000 psi. Install BPV at surface, nipple down and remove BOP stack. Install wellhead tree. RD and remove all rig. Prepare site for well testing and surface production facilities. File completion reports with proper agencies. 20. 21. 22. 23. 24. 25. 26. Site Access: Nicolai Creek No.8 can be easily accessed by airplane or gravel road. NC 8 will be drilled on a gravel pad that was originally built back in the late 1960's. The actual site is at the end of the Shirleyville airstrip. One can fly into Shirleyville or Tyonek, which is 11 miles away and drive to the site via gravel road.. Equipment is brought to the site by first transporting across the Cook Inlet via barge from Kenai to the old lumber camp, where it is staged. It is then either hauled or driven via gravel road to the site. No further surface disturbance is planned for drilling activities. Pressure Considerations: From offset wells in the immediate area and actual pressure data, maximum anticipated bottom-hole pressures should not exceed 1100 psig. For this reason, permission is requested to limit casing and surface equipment pressure testing to 2000 psi. Casing I Cementing Program: All casing is new. Analysis (attached) indicates casing program as designed provides adequate safety factors for this well. Cementing services will be provided by BJ services, and the program with all details is attached. Drilling Fluids: The drilling fluids are being furnished by MI Drilling Fluids. MI has extensive experience with drilling activities in this area. An experienced mud engineer will be on site at all times while drilling to monitor rheologies and make recommendations. Attached is a copy of MI' s mud program. Drilling Hazards Drilling in the South Central Region of Alaska offers its own challenges. Common known hazards are as follows: ) ) Shallow gas: Shallow gas is a known hazard which exists throughout the area. Shallow gas has been encountered in surface water wells in the Wasilla area, and is believed to originate in the many shallow coal beds which make up the regions subsurface. Of critical importance to the well being proposed, shallow gas of sufficient quantity to require mud weights of 13.5 ppg was encountered in a co&! seam at 750' MD. Due to the shallow nature of the well, vigilant monitoring of the pit system, especially during trips is critical. This is because there is little reaction time allowed between when a potential kick is observed and decisive action must be taken to close in the well. Coal Seams: The Cook Inlet region is rich in coal seams, interbedded between the sands, gravels and shale's that make up the Beluga and Tyonek formations. Drilling into a coal seam will appear to be a drilling break. The major hazard of drilling into a coal seam, without observing the proper response, is the risk of stuck pipe. The proper course of action for preventing stuck pipe is two-fold. First, prior to drilling, insure the drilling fluid system is up to par, per recommendations from the on-site mud engineer. The second step to successfully drilling through coals in the Cook Inlet area is to not get greedy when coals are encountered. When a coal has been encountered, pull back above coal after drilling into it, and circulate, allowing the coal to stabilize. Re-enter, drill some more, and pull back out again. Continue in this fashion until successfully through the coal bed. The key word in successfully drilling the coal beds is patience. It should be remembered that coals behave plastically, and will flow under the weight of the overburden. The deeper the coal, the more pronounced this tendency becomes. For this reason, it is critical to maintain the proper weight and viscosity of your drilling fluid to properly remove the coals drilled up, and to hold flowing coals in place. Again, heed the recommended drilling fluid program and advice offered by the Mud Engineer. Nearby Well's: The NC No.8 wellhead will be within close proximity to three other wells on the same pad, the NCU 2, the NCU 1B, and NCU 6, a P&A'd well. Proximity wise, these wells vary in distance from 20' to 50' from the NC No.8. At surface one needs to be careful around the wellhead of the NCU 2 and the NCU No. 1B well, which will be completed when NCU 8 is drilled. From a subsurface point of view, sufficient clearance is available so no interference, magnetic or mechanical should be observed. Other: Sticky bentonitic clays, boulders, lost returns & differential sticking wi overbalanced muds (+ 12.5ppg) and gas influx while cementing 27/l ).5# J-55 Srd Production Tubing Niccp1 Creek No.8 NicOlai Creek Field LINER PRODUCTION 7" 23# J-55 LTC 2300' TUBING 27/8" 6.5# J-55 8Rd , ::,¡~i~; ~\:~: ' ¡ ~,.~~ , , PTD: ~. '~Y" ' . ¡.r'i~ API' ~i¡~ ¡I~~I,: ! I It;; SP,~d Date: W'~,' dl, ~.III I' :~ 'ft .. ',I.¡,.~t'). \'W11.1,: .: ' , Date Abandoned: '''&[f;ItJ "il. ,\., I 12 1/4" Hole :~:~~l!, ,It' ~!\ : ' '." Elev. (OF) 3,6' '(Ground Elevation 22' AMSL) ~i~,~i~ !UU\¡~ . \ iïl~ 1~ All depths are OF measured depths. r~'~ If ¡I'I . 1',/ "~I) ~j~~~' \~~ i i ! \:tï¡ ~ Proposed NC No.8 Completion 9 5/8" 36#J-55A;~¡ii\,': : i;~",;i,;1 ", I x I Þroposed 620' MD (TVD) /t. ')I , . I . ; .;;I¡! ¡WI¡ ~:I I !II!;¡ I I Present Condition 'Wlt'II~' ' I ;1~'l¡.I1 . Packer Fluid: ~. : ~,..: I ~¡t¡i 2.31 ID X-Nipple 02 !nhibitêd KCL !/:\ili i ~!~jl 1 Jt above pac(er Fluid above Pkr. .'t¡~~M~ " : ,rl~ ~i.r,,;M.~,~., , t '~'I.r¡w.;!¡! 7" Permanent Pack,r W/seal assembly \l: ~I ~ I 1 1.¡' .:~'J¡'~': I ,I!!,' !Mt, i ,;-~ l~l~1 ,'I~.~;'i~¡ ~ '!M''¡ 3" Tubing Spacer :I~~ \~r w/XO's between packer ~"j'!\il,J' 1.';,'::;1 and Screens ~ (! !~ r~ \! Production Perfs 2400' - 2450' 7" 23# J-55 LTC \)1)1) @ 2300' MD (TVD) ilU¡ Cemented to Surface S 1/2" Hole toTD @ 2500' MD (2500' TVD) 13 3/8" 54.5# K-55 Conductor Driven 80 - 90' 8 1/2" Hole Production Perfs 1325' - 1490' Production Perfs 2300' - 2400' Size Wt. Grde Thrd Depth Sks/Cmt CONDUCTOR 133,8" 80' - 90' SURFACE 9 5/8'"' 36# J-55 LTC 620' ,,600 Sks INTERMEDIATE 5 1/2" Sandscreens across Perforations '.jit ¡¡j'~'1 ~~r, ", é'~.""":,f.,.'., ~\~~~¡' . i..h~ ,~ i1~J~ Iii! 95 Sack Class G Plug 7215' - 7000' MD DRAWING NOT TO SCALE FAIRWEATHER E&P SERVICES ING. Nicolai Creek NO.8 Rev. 01 Pcond IDHV 05-Aug-02 ) Aurora Well Service Rig No.1: Proposed Surface Diverter System Bell Nipple Flow Line to Pits Fill Line ~ ( I f 1 I 13-5/8", 5000 psi WP Annular Preventer Hydraulically Operated 10" Valve "-- I I I . ~ 10" Diverter Vent Line ~ I ~ Ä e-- ;. E êI Ë ~ '- . ~ E -3 t::::::J € - -- 13-5/8", 5M Drilling Spool I Mud Cröss I 13 3/8" Conductor Pipe with 13-5/8", 5000 psi WP Flange welded on top Drawing Not to Scale Fairweather E&P Services, Inc. Nicolai Creek No.8 Diverter System Rev. 02.01 I DHV 21-Aug-02 Aurora Well Service Ri(f,No. 1 Proposed Choke / Kill Ma~fold Configuration All valves are 3" raten -~t 5000 psi. " InJet from Power Swivel (Reverse Circulation Mode) Output to Pits 3" 5M Rated Valves 2" 5M Rated Valves Hydraulic Remote Activated choke . ;~nr::c-:=~'"';=.7::::::='~ ;:-:.~ t II íl i1 t' ~>"""'''''''''".'''.'-'..^::m::,'.' "'~:~~:':::"':::---"~"~'.""',;~~ ~. : - ',~~.":::.:!,,:,:_,,-' ''-'''''''''"~''-r..~l1~_f~ ==::~:~J . ..y.r - I~. ..,.,- '.' ..,..",. "'\ß8I;"'" IY.., - .. - --- t~1 - ~ Bleed Flare Line to 3" 5M RatedJ Open Flare Pit Valves , ~ 3" 5M Rated Valves t :=:::::~=:::=:::~:::-<q::::-=::1=1IJ Inlet from BOP Choke Line 2.' 5M Rated Valves Manual Choke To Gas Buster "Atmospheric Degasser" Drawing Not to Scale Fairweather E&P Services, Inc. Nicolai Creek No.8 Choke/Kill Manifold Rev. 02.01 I DHV 01-Aug-02 Aurora Well Serviç~>Rig No.1: Proposed 3M BOP C~nfiguration ) ) Fill Up Line c:::::: ~ flow line to pits /"' I ~ 3M Schaffer Annular Preventer Pipe Rams sized to work string. 11" 3M Double Gatè wI 3/12" pipe rams installed. 11"3M Mud Cross Blind Rams 3" 5M Manual Valve (Kill Line) , ~- 3" 5M Hydraulic Valve ~ ~........". ~ I . (Kill Line) ------..~ Fluid flow direction ~ ~= while reverse circulating /3" 5M Manual Valve (Choke line) ~ 3" 5M Hydraulic Valve (Choke Line) 11""X 3M dìI):, Braden Head [tD 2" 3M Manual Valves On Wellhead , 9 5/8" Casing "'" .. " 13 3/8" Conductor Drawing Not to Scale Fairweather E&P Services, Inc. Nicolai Creek No.8 BOP System Rev. 02.01 I DHV 01-Aug-02 ^ ) ) AURORA GAS llC NICOLAI CREEK # 8 7" eSG ;:J 2-7/8"TBG ~ ~' ,,@.@o 0 §) "!@o [r1ìl ,-- 1 þ- ~~~ ~ c-" @, 0 @ ^) -'I, @ 0 @ -, rfur--1 2-1/16" 5,000 @ @ - @ @ [JL--J! 0 0 L -;) 0 0 ç~ .-J 0 rTIl. 1 - 0 ~ . r . lUJo')L :~- (J^ ~I 2-1/16"LP - , ft CAMERON 2-9/16" 5,000 Tree Run 7-1/16" 3,000 11" 3,000 9-5/8" eSG David Shaw Anchorage Ak 04104102 ~ June 18, 2002 Fairweather E&P Services Inc. Anchorage, Alaska ATTN: Duane Vaagen Ref: Aurora Gas Nicolai Creek Unit # 8 Duane Enclosed is the mud program for your upcoming grass roots well Nicolai Creek #8. Included is a well summary, economic summary, interval summary, and the project team list. This program is for a low solids gel/gelex fluid in the surface interval and a Flo-Pro system with 3% KCL in the production interval. Mud weights up to 13.5 ppg will be required. The completion costs for this well assumes using 3% KCl brine. Please call me if you have any questions regarding the mud program. Lee Dewees Project Engineer M-I Drilling Fluids 907 274-5533 M-I Drilling Fluids L.L.c. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax ~ DRilliNG , ~ FLUIDS ~\ t ') Well Summary Nicolai Creek 8 . Casing Hole Casing Depth TVD Mud Mud Sum Cumulative Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) (ppg) 9 5/8" 12 1/4" 610' Gel/Gelex 9.5 - 13.5 3 $12500 Casing 7 8 1/2 "" 2200' Flo-Pro/3 % KCI 13.5 10 $49000 Casing 3% KCl 14 $53600 Key Issue 1 Well Control Gas Kicks Key Issue 2 Lost Circulation Key Issue 3 Hole Stability Coal Stability Key Issue 4 Mesh Rite Screen M-I Drilling Fluids L.L.C. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax . Maintain constant attention for shallow gas kicks. An offset well experienced a gas kick in a coal seam @ 700'. Mud weights of 13.5 ppg can be expected in the 12 1/4" interval and will be required in the 8 1/2" interval. . Maintain adequate barite inventory. . Periodic additions of Safecarb Fine or Medium will control seepage losses. . Maintain 4 - 6 ppb KlaGard concentration through the en- tire interval. Add Dualf10 and Ploypac UL as required. . Add Asphasol Supreme if required. . Build 3% KCl completion brine. . Filter brine if required. P"f-j DRILLING , ~ FLUIDS ) Interval Summary - Nicolai Creek 8 Drilling Fluid System Gel-Gelex Key Products MI Gel/ Gelex/ Barite/Poly Pac Ul/Soda Ash/Desco CF / Solids Control Shale Shakers / Desilter / Centrifuge / Ditch Magnets Potential Problems GAS KICKS/ Lost Circulation / / Drill Solids/ Hole Stability/ Sloughing Coal/Bit Balling Depth API Lubricant Total Interval Viscosity Point Fluid Loss Percentage Solids (ft) (cp) (lb/100ft2) (ml/30min) (%) (%) 60' 20-25 25- 35 8-10 0 15-25 610' 22-30 20 - 30 6-8 0 15-25 . Build initial volume with fresh water, 15 ppb ofMI Gel, Gelex (one sack per five sacks ofMI Gel) soda ash as required, and barite to 9.5 ppg. . Beware of shallow gas kicks. Mud weights of 13.5 ppg could be required. . Keep drill solids to a minimum by aggressive use of all solids control equipment, dilution with fresh water may be required. . Use Desco CF to thin the mud if required. . Spot LCM pill if lost circulation occurs. . Run 9 5/8" casing and clean pits for new Flo-Pro system. . Initial volume requirements should be 200-300 bbls M-I Drilling Fluids L.L.c. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax ...,... DRllUN[j , ~ FLUIDS ') Interval Summary - Nicolai Creek 8 Drilling Fluid System Flo-Pro 13 % KCL Key Products FIQ- Vis 1 Kla-Gard 1 Barite 1 Caustic Soda 1 Dual-Flo/KCLIDDIDrill xt ISafe Carbl Asphasol Solids Control Shale Shakers / Desilter 1 Centrifugy 1 Ditch Magnets Potential Problems GAS KICKSI Lost Circulation 1 Drill Solids/ Hole Stabilityl Slough- ing Coal/Bit Balling Interval Depth Mud Plastic Yield API Total Interval Weight Viscosity Point Fluid Loss Percentage Solids (ft) (ppg) (cp) (lb/100ft2) (ml/30min) (%) (%) 700' 13.5 20-25 25- 35 8-10 0 15-25 2200' 13.5 22-30 20 - 30 6-8 0 15-25 L-.- -- - - . Build initial volume with 3% KCL, 1.5-2 ppb Flovis, Caustic for 9.0 pH - 2 ppb Dual-Flo, 4 ppb Asphasol, and 1/4 ppb Greencide. . Initial mud weight should be 13.5 ppg. . Keep drill solids to a minimum by aggressive use of all solids control equipment, dilution with 3% KCL, Use Kla-Gard (shale inhibitor) if required. . Maintain fluid loss control with additions ofDual-Flo and Poly Pac UL. . At T.D., sweep hole, spot a clean Flo Pro pill (35 -40 yield point) . Run and set liner, clean pits, displace well to 3% KCL. . Initial volume requirements should be 200-300 bbls M-I Drilling Fluids L.L.c. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax ..,.,.... DRllUNG , ~ FLUIDS ') Project Team Nicolai Creek t ~ t ~ , . MI Project Engineer and Tech Service Engineer will coordinate between the Fairw~ather office, rig, warehouse, and the M-I field engineers. . Well progress will be monitored to look for any changes which will improve the efficiency of the opera- tion or avert trouble.. Project T earn Title Work Cellular Craig Bieber District Manager 907 274-5051 907229-1196 Deen Bryan Tech Service 907274-5003 907223-1634 Lee Dewees Project Engineer 907274-5533 907227- Gus Wik Warehouse Manager 907776-8680 907252-4218 Ray Figueroa Field Engineer 907274-5564 Rob Reinhardt Field Engineer 907 274-5564 M-I Drilling Fluids L.L.C. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax ~ DRILLING r ~ FLUIDS ") Economics Summary Nicolai Creek #8 Surface 3 3 $10550 $1950 $12500 12 1/4" I Drilling 7 10 $30000 $6500 $49000 ~ 2200' . Completion 4 $2000 $2600 $53600 14 -..."- -.- . Well cost includes 3% KCl completion fluid. . Full time engineering service is included in cost. . Costs do not include any consideration for lost circulation or stuck pipe. M-I Drilling Fluids L.L.c. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax Pf"'f-j DRILLING , ~ FLUIDS ) ) Well Summary Nicolai Creek 8 \ . Casing Hole Casing Depth TVD Mud Mud Sum Cumulative ~ Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) (ppg) ~! ~' 9 5/8" 12 1/4" 610' GeliGelex 9.5 - 13.5 3 $11500 ¡ Casing ~ 220<}" Flo-Pro,'3 ~iO KCI 13.5 10 $49000 30.'0 KCI [4 $53600 -1 .. ....~-.--~ ~,. --a.., ....... . .........~ ~~,' -4 --.- - ~~.-d 7 Casing )3 Ii2"" "",.................... h....,. . , Key Issue 1 Well Control Gas Kicks Key Issue 2 Lost Circulation Key Issue 3 Hole Stability Coal Stability Key ISSlle 4 Mesh Rite Screen M-I Drilling Fluids LLC. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax . Maintain constant attention for shallow gas kicks. An offset well experienced a gas kick in a coal sealn @ 700'. Mud weights of 13.5 ppg can be expected in the 12 1/4" interval and will be required in the 8 II2" interval. . Maintain adequate barite inventory. . Periodic additions of Safecarb Fine or Medium will control seepage losses. . Maintain 4 - 6 ppb KlaGard concentration through the en- tire interval. Add Dualflo and Ploypac UL as required. . Add Asphasol Suprelne if required. . Build 3% KCl cOlupletion brine. . Filter brine if required. ~ DRilLING r ~ FLUIDS ') Interval Summary - Nicolai Creek 8 Drilling Fluid System Gel-Gelex t r 4, ~ ,I 1 --,~ Key Products MI Gel! Gelexl Barite/Poly Pac UlISoda Ash/Desco CF/ Solids Control Shale Shakers / Desilter I Centrifuge / Ditch Magnets Potential Problems GAS KICKS/ Lost Circulation / / Drill Solids/ Hole Stability/ Sloughing Coal/Bit Balling .... Interval Drilling Fluid Properties , ~ Depth Mud Plastic Yield API lubricant Total Interval Weight Viscosity Point Fluid loss Percentage Solids (ft) (ppg) (cp) (lb/100ft2) (mIl30min) (%) (%) 60' 9.5 20-25 25- 35 8-10 0 15-25 610' 9.5-13.5 22-30 20 - 30 6 -- 8 0 15-25 ~,:U,J: :\lr..'!I:'::hIlm;;'ikØ~C~:,:':l__-,". '" ---,11--.- -----------_0.-.....--.-1...'1 III' .. l1li '111 ~~-- r"'" . Build initial volume with fresh water, 15 ppb of MI Gel, Gelex (one sack per five sacks of MI Gel) soda ash as required, and barite to 9.5 ppg. . Beware of shallow gas kicks. Mud weights of 13.5 ppg could be required. . Keep drill solids to a minimum by aggressive use of all solids control equipment, dilution with fresh water may be required. . Use Desco CF to thin the Inud if required. . Spot LCM pill if lost circulation occurs. . Run 9 5/8"' casing and clean pits for new Flo-Pro system. . Initial volume requirelnents should be 200-300 bbls M-I Drilling Fluids L.L.c. 721 West First Avenue Anchorage, Alaska 9950 I (907) 274-5564 (907) 279-6729 Fax ~ DRILLING r ~ FLUIDS ) Interval Summary - Nicolai Creek 8 Drilling Fluid System Fio-Pro 13 % KCL ! \ ~ Key Products FIo-Vis 1 Kla-Gard 1 Barite I Caustic Soda 1 Dual-FIo/KCL/DDIDrill ï XT ISafe Carbl Asphasol a Solids Control Shale Shakers! Desilter I Centrifuge! Ditch Magnets .~ Potential Problems GAS KICKSI Lost Circulation 1 Drill SOlidS/. Hole Stability! Slough- t., ' ing Coal/Bit Balling , II IIIIIIIIIIIIlt.......,..,'-..JI....... ~~ ...I.;;¡,.,.~ --- -. 1.- ., .. .......... ì ....-., ,~ Plastic API Lubricant Total ~j Viscosity Point Fluid Loss Percentage Solids h (cp) (lb/100ft2) (ml/30min) (%) ('Yo) ~ 20-25 25- 35 8-10 0 15-25 22-30 20 - 30 6 8 0 15-25 J '0---1'. ----."...- -] --........ IIUI ,..... --II t------""'- ---."~"...-,...,,,,..,,.. - -'.._~".--".""""i I!i!".!!!ö.- .._~-_... m... --r-J . Build initial volume with 3% KCL, 1.5-2 ppb Flovis, Caustic for 9.0 pH - 2 ppb Dual-Flo, 4 ppb Asphasol, and 1/4 ppb Greencide. . lnitialtnud weight should be 13.5 ppg. . Keep drill solids to a tninimum by aggressive use of all solids control equipment, dilution with 3% KCL, Use Kla-Gard (shale inhibitor) if required. . Maintain fluid loss control with additions of Dual-Flo and Poly Pac UL. . At T.D., sweep hole, spot a clean Flo Pro pill (35 -40 yield point) . Run and set liner, clean pits, displace well to 3% KCL. . Initial volume requirements should be 200-300 bbls M-I Drilling Fluids LLC. 721 West First Avenue Anchorage. Alaska 99501 (907) 274-5564 (907) 279-6729 Fax ~. DRilliNG r ~ FLUIDS ') ') Project Team Nicolai Creek t t ~~~f~~~~~J",~Q::~~)1.. ..,~.. . , . MI Project Engineer and Tech Service Engineer will coordinate between the Fairweather office, rig, warehouse, and the M-I field engineers. . Wen progress will be monitored to look for any changes which will improve the efficiency of the opera- tion or avert trouble.. Proj ect T earn Title Work Cellular Craig Bieber District Manager 907274-5051 907229-1196 Deen Bryan Tech Service 907274-5003 907223-1634 Lee Dewees Project Engineer 907 274-5533 907 227- Gus Wik Warehouse Manager 907 776-8680 907 252-4218 Ray Figueroa Field Engineer 907 274-5564 Rob Reinhardt Field Engineer 907 274-5564 M-I Drilling Fluids LL.C. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax p.---j DRILLING r ~ FLUIDS ') WelllD Nicolai Creek Unit No.8 Min. Safety Factors To Be Used: Body Yield: Jt. Strength: Collapse Collapse While Cementing Top Burst Bottom Burst Casing String No.1 Properties: Casing Properties: Size 00: Grade: Weight ppf: Coupling: Set Depth ft Next Casing Depth 13 3/8 K-55 54.50 Welded 90.00 (ft)MD 620.00 (ft)MD Collapse Resistance (psi) . Internal Yield (psi) Joint Strength (psi) x 1000 Body Yield (psi) x 1000 Fluid Properties: Material Mud Weight Anticipated Mud Wt Next Csg pt. Calculated Bouyancy Factor @ Mud Wt: Anticipated Cement Weight (ppg) Sea Water Gradient (ppg) Frac Gradient at Shoe(ppg) Gas Gradient (psi/ft) Mud Backup Gradient ppg % F1uid Drop for Collapse Calculation (Enter I). 1.5 1.8 1.5 1.5 1.5 1.5 ) 90.00 (ft)TVD 620.00 (ft)TVD 1130.00 2730.00 514.00 853.00 514,000.00 * Tensile Limits 853,000.00 * Tensile Limits Weight ppg Gradient psi/ft 8.33 10.00 0.87 15.8 8.94 12 8.95 0.433 psilft 0.520 psi/ft 0.822 psi/ft 0.465 psilft 0.624 psi/ft 0.110 0.465 55 0.55 ') ) Tensile Calculations: Weight in Air (Ibs) Bouyant Weight in Mud (Ibs) 4,905.00 4,280. 25 Maximum setting depth (ft) 9,431.19 In Air: = Jt Strength I Wt.ppf Joint Strength Safety Factor 104.79 Ih Air: = Jt Strength I (Wt ppf * set dèpth) Body Yield Safety Factor 173.90 In Air: = Body Yld I (Wt ppf * set depth Collapse Calculations: Collapse Safety Factor 84.23 Collapse Res / (Depth TVD * % Fluid Drop *(Mud B'"4P Grad - Gas Grad» Collapse SF while cementing Burst Calculations: 35.25 Collapse Res I Depth TVD * (Cmt Grad - B-up Mud Grad) No lost Cirçulation/Evacuation 9ccurs As.sume seawater backup gradient, .465 psilft for burst design purposes Assume worst case by using trac gradient at casing shoe for ASP calculðtions, ASP (anticipated surface pressure) 46.26 (Frac Grad - Gas Grad)* Set Depth TVD Top Burst Safety Factor 59.01 Tube burst rating / ASP Bottom Burst Safety Factor 59.92 (In1. Yld + Depth TVD * Seawater Grad) / ASP Summary OF 13 3/8 Safety Factors Body Yield 104.79 in air "Tensile" Joint Strength 173.90 in air "Tensile" Collapse 64.23 Collapse 35.25 while cementing Top Burst 59.01 Bottom Burst 59.92 OK OK OK OK OK OK ) WelllD Nicolai Creek ,Unit No.8 Min. Safety Factors To Be Used: Body Yield: Jt. Strength: Collapse Collapse White Cementing Top Burst Bottom Burst Casing String No.2 Properties: Casing Properties: Size 00: Grade: Weight ppf: Coupling: Set Depth ft Next Casing Deptt1 9 5/8 J-55 36.00 LTC 620.00 (ft)MD 2500.00 (ft)MD Collapse Resistance (psi) Internal Yield (pSi) Joint Strength (psi) x 1000 . Body Yield (psi) x 1000 Fluid Properties: Material Mud Weight Anticipated Mud Wt Next Csg pt. Calculated Bouyancy Factor @ Mud Wt: Anticipated Cement Weight (ppg) Sea Water Gradient (ppg) Frac Gradient at Shoe(ppg) Gas Gradient (psi/ft) Mud Backup Gradient ppg .% Fluid Drop for Collapse Calculation (Enter #). 1.5 1.8 1.5 1.5 1.5 1.5 ) 620.00 (ft)TVD 2500.00 (ft)TVD 2020.00 3520.00 453.00 564.00 453,000.00 * Tensile Limits 564,000.00 * Tensile Limits Weight ppg Gradient psi/ft 10.00 13.60 0.85 15.8 8.94 15.3 13.6 0.520 psi/ft 0.707 psilft 0.822 psi/ft 0.465 psi/ft 0.796 psi/ft 0.110 0.707 55 0.55 ) Tensile Calculations: Weight in Air (Ibs) Bouyant Weight in Mud (Ibs) 22,320.00 18,907.16 Maximum setting depth (ft) 12,583.33 In Air: = Jt Strength I Wt.ppf Joint Strength Safety Factor 20.30 In Air: = Jt Strength I (Wt ppf * set depth) Body Yield Safety Factor 25.27 In Air: = Body Yld I (Wt ppf * set depth Collapse Calculations: Collapse Safety Factor 9.92 Collapse Res / (Depth TVD * % Fluid Drop *(Mud B-up Grad - Gas Grad» Collapse SF while cementing 28.48 Collapse Res / Depth TVD * (Cmt Grad - B-up Mud Grad) No lost Circulation/Evacuation occurs Burst Calculations: Assume seawater backup gradient, .465 psilft tor burst design purposes Assume worst case by using trae graclient at casing shoe for ASP calculations. ASP (anticipated suñace pre.ssure) 425.07 (Frac Grad - Gas Grad)* Set Depth TVD Top Burst Safety Factor 8.28 Tube burst rating / ASP Bottom Burst Safety Factor 8.96 (lot. Yld + Depth TVD * Seawater Grad) / ASP Summary OF 9 5/8 Safety Factors Body Yield 20.30 in air 'Tensile" Joint Strength 25.27 in air "Tensile" Collapse 9.92 Collapse 28.48 while cementing Top Burst 8.28 Bottom Burst 8.96 OK OK OK OK OK OK ) WelllD Nicolai Creek Unit No.8 Min. Safety Factors To Be Used: Body Yield: Jt. Strength: Collapse Collapse While Cementing Top Burst Bottom Burst Casing String No.3 Properties: Casing Properties: Size 00: Gradø: Weight ppf: Coupling: Set Depth ft Next Casing Depth 7 J-55 23.00 LTC 2500.00 (ft}MD 2500.00 (ft)MD Collapse Resistance (psi) Internal Yield (psi) Joint Strength (psi) x 1000 Body Yield (psi) x 1000 Fluid Properties: Material Mud Weight Anticipated Mud Wt Next Csg pt. Calculated Bouyancy Factor @ Mud Wt: Anticipated Cement Weight (ppg) Sea Water Gradient (ppg) Frac Gradient at Shoe(ppg) Gas Gradient (psi/ft) Mud Backup Gradient ppg . % Fluid Drop for Collapse Calculation (Enter #). 1.5 1.8 1.5 1.5 1.5 1.5 2500.00 (ft)TVD 2500.00 (ft)TVD 3270.00 4360.00 313.00 366.00 313,000.00 * Tensile Limits 366,000.00 * Tensile Limits Weight ppg Gradient psi/ft 13.60 0.707 psi/ft 9.50 0.494 psilft 0.79 15.8 0.822 psi/ft 8.94 0.465 psi/ft 15.3 0.796 psi/ft 0.110 13.6 0.707 55 0.55 T ~nsile Calculations: Weight in Air (Ibs) Bouyant Weight in Mud (Ibs) Maximum setting depth (ft) Joint Strength Safety Factor Body Yield Safety Factor Collapse Calculations: Collapse Safety Factor Collapse SF while cementing Burst Calculations: ASP (anticipated suñace pressure) Top Burst Safety Factor Bottom Burst Safety Factor Summary OF 7 Body Yield Joint Strength Collapse Collapse Top Burst Bottom Burst ) 57,500.00 45,542.81 13,608.70 In Air: = Jt Strength I Wt.ppf 5.44 In Air: = Jt Strength I (Wt ppf * set depth) 6.37 In Air: = Body Yld I (Wt ppf * set depth 3.98 Collapse Res / (Depth TVD * % Fluid Drop *(Mud B-up Grad - Gas Grad» 11.43 Collapse Res / Depth TVD * (Cmt Grad - B-up Mud Grad) No lost Circulation/Evacuation occurs Assume seawater backup gradient, .465 psi/ft for burst design purposes Assume worst case by using trac gradient at casing shoe for ASP calculations, 1,714.00 (Frac Grad - Gas Grad)* ~et Depth TVD 2.54 Tube burst rating I ASP 3.22 (Int. Yld + Depth TVD * Seawater Grad) / ASP Safety Factors 5.44 in air "Tensile" 6.37 in air "Tensile" 3.98 11.43 while cementing 2.54 3.22 OK OK OK OK OK OK ) ') !£j Proposal No: 10017220SA Fairweather Expl & Prod Inc Nicolai Creek Unit No.8 Aurora Gas I Well Se Rig Nicolai Creek Field Anchorage County, Alaska June 10, 2002 WeJl Recommendation Prepared for: Duane Vaagen Project Engineer Fairweather E & P Services, Inc. Prepared by: J. Jay Gamer Manager, City Sales Kenai, Alaska Bus Phone: (907) 349-6518, Anchorage Email: jgamer@bjservices.com ~. I) 0 \V ERV? I S I ONw Service Point: Kenai Bus Phone: (907) 776-4084 (907) 659-2329 (907) 776-4087 Fax: Service Representatives: J. Jay Garner Manager, City Sales Kenai, Alaska Bus Phone: (907) 349-6518, Anchorage Email: jgamer@bjservices.com Gr41 05 Operator Name: Fairweather Expl & P ..};1lnc Well Name: Nicolai Creek Unit f'..v. 8 Job Description: Surface Casing Date: June 10, 2002 JOB AT A GLANCE Depth (TVD) Depth (MD) Hole Si~e Casing SizelWeight : Pump Via 620 ft 620 ft 12.25 in Casino 95/8" C.D. (8.921" .I.D) 36 # 9 5/8 in, 36 Ibs/ft Total Mix Water Required Spacer Fresth Water Density Cement Slurry Surface Pipe Slurry Density Yield Displacement Displacement Density Report Printed on: June 11. 2002 4:45 PM Page 1 1,719 gals 15 bbls 8.4 ppg 344 sacks 15.8 ppg 1 .16 cflsack 42 bbls 8.3 ppg ) !£j Proposal No: 10017220SA Gr41 09 Operator Name: Fairweather Expl & r .....'\1 Inc Well Name: Nicolai Creek Unit N".ð Job Description: Surface Casing Date: June 10, 2002 ') Wj Proposal No: 100172205A WELL DATA ANNULAR GEOMETRY ANNULAR I.D. (in) 12.715 CASING 12.250 HOLE DEPTH(ft) MEASURED I TRUE VERTICAL 90 I 90 620 I 620 SUSPENDED PIPES DIAMETER (in) O.D. . I 9.625 I I I.D. 8.921 WEIGHT (Ibs/ft) 36 DEPTH(ft) MEASURED I TRUE VERTICAL 700 I 700 Float Collar set @ Mud Density Mud Type Est. Static Temp. Est. Circa Temp. 620 ft 9.00 ppg Water Based 620 F 600 F VOLUME CALCULATIONS 90 ft x 0.3765 cf/ft 530 ft x 0.3132 cf/ft 80ft x 0.4341 cflft with Q % excess = with 100 % excess = with 0 % excess = TOTAL SLURRY VOLUME = 33.9 cf 332.0 cf 34.7 cf (inside pipe) 400.6 cf 71 bbls = Report Printed on: June 11. 2002 4:45 PM Page 2 Gr4115 Operator Name: Fairweather Expl & P.. ...~. Inc Well Name: Nicolai Creek Unit t\ A Job Description: Surface Casing Date: June 10, 2002 FLUID SPECIFICATIONS Spacer FLUID VOLUME VOLUME CU-FT FACTOR Cement Slurry I 1.16 401 Displacement CEMENT PROPERTIES Slurry Weight (ppg) Slurry Yield (cf/sack) Amount of Mix Water (gps) Amount of Mix Fluid (gps) Report Printed on: June 11. 2002 4:45 PM E£j Proposal No: 100172205A 15.0 bbls Fresth Water @ 8.42 ppg AMOUNT AND TYPE OF CEMENT ~ 344 sacks Class G Cement + 2% bwoc Calcium Chloride + 1 gals/100 sack FP-6L + 44.3% Fresh Water 41.7 bbls Displacement @ 8.34 ppg SLURRY NO.1 15.80 1.16 5.00 5.01 Page 3 Gr4129 Operator Name: Fairweather Expl & r .)llnc Well Name: Nicolai Creek Unit Nt>. 8 Job Description: Production Casing Date: June 10, 2002 JOB AT A GLANCE Depth (TV D) Depth (MD) Hole Size Casing SizeIWeight : Pump Via 2,200 ft 2,200 ft 8.5 in Casino 7" 0.0. (6.366" .1.0) 23 # 7 in, 23 Ibs/ft Total Mix Water Required Weighted Spacer MCS-4D Spacer Density 1st Lead Slurry Lead Cement Density Yield Tail Slurry Tail Cement Density Yield Displacement Drilling Mud Density Report Printed on: June 11, 20024:45 PM Page 6 2,008 gals 20 bbls 10.0 ppg 117 sacks 12.5 ppg 2.10 cf/sack 123 sacks 15.8 ppg 1 .15 cf/sack 83 bbls 11 .2 ppg !£j Proposal No: 100172205A Gr41 09 Operator Name: FailWeather Expl & r ..,~ Inc Well Name: Nicolai Creek Unit f\t~ ¿ Job Description: Production Casing Date: June 10, 2002 !£j Proposal No: 100172205A WELL DATA ANNULAR GEOMETRY ANNULAR I.D. (in) 8.921 CASING 8.500 HOLE DEPTH(ft) MEASURED I TRUE VERTICAL 620 I 620 2,200 I 2,200 SUSPENDED PIPES DIAMETER (in) O.D. I 7.000 I I.D. 6.366 WEIGHT (Ibs/ft) 23 DEPTH(ft) MEASURED I TRUE VERTICAL 2,200 I 2,200 STAGE: 1 Float Collar set @ Mud Density Mud Type Est. Static Temp. Est. Circ. Temp. 2,120 ft 9.00 ppg Water Based 1 02. 0 F 950 F VOLUME CALCULATIQNS 620 ft x 0.1668 cflft 830 ft x 0.1268 cf/ft 750 ft x 0.1268 cf/ft 80 ft x 0.2210 cflft with 0 % excess = with 35 % excess = with 31 % excess = with 0 % excess ::: TOTAL SLURRY VOLUME = 103.4 cf 142.1 cf 124.2 cf 17.7 cf (inside pipe) 387.3 cf 69 bbls = STAGE: 2 Mud Density 9.00 ppg Report Printed On: June 11.2002 4:45 PM Page 7 Gr4115 Operator Name: Fairweather Expl & prq,p Inc Well Name: Nicolai Creek Unit N Job Description: Production Casing Date: June 10, 2002 FLUID SPECIFICATIONS Weighted Spacer FLUID VOLUME VOLUME CU-FT FACTOR 1 st Lead Slurry 246 I Tail Slurry 142 I Displacement CEMENT PROPERTIES Slurry Weight (ppg) Slurry Yield (cf/sack) Amount of Mix Water (gps) Amount of Mix Fluid (gps) Report Printed On: June 11. 2002 4:45 PM ) E£j Proposal No: 100172205A 20.0 bbls MCS-4D Spacer + 30.8Ibs/bbl Bentonite + 621bs/bbl Barite + 14lbs/bbl R-3 + 9.19 Ibs/bbl Potassium Chloride @ 10 ppg AMOUNT AND TYPE OF CEMENT 2.1 = 117 sacks Class G Cement + 0.75% bwoc Calcium Chloride + 0.4% bwoc CD-32 + 2% bwoc Sodium Metasilicate + 1 gals/100 sack FP-6L + 106.1 % FreshWater = 123 sacks Class G Cement + 0.3% bwoc CD-32 + 0.4% bwoc FL-33 + 1 gals/100 sack FP-6L + 0.3% bwoc Sodium Metasilicate + 43.9% Fresh Water 1.15 83.5 bbls Drilling Mud @ 11.2 ppg SLURRY SLURRY NO.1 NO.2 12.50 15.80 2.10 1.15 11.96 4.95 11.97 4.96 Page 8 Gr4129 Operator Name: Fairweather Expl & r ..) Inc Well Name: Nicolai Creek Unit NO.8 Date: June 10, 2002 (£j Proposal No: 10017220SA PRODUCT DESCRIPTIONS Barite A naturally occuring mineral (Barium Sulfate). It is widely used as a weighting material in cement spacers and occasionally in cement slurries. It can yield a slurry density in excess of 19 Ibs/gaL Bentonite Commonly called gel, it is a clay material used as a cement extender and to control excessive free water. CD-32 A patented, free-flowing, water soluble polymer that is an efficient and effective dispersant for primary and remedial cementing. Calcium Chloride A powdered, flaked or pelletized material used to decrease thickening time and increase the rate of strength development. Class G Cement Intended for use as a basic cement from surface to 8000 ft as manufactured, or can be used with accelerators and retarders to cover a wide range of well depths and temperatures. FL-33 A patented cement fluid loss additive that provides exceptional fluid loss control across a wide range of temperatures, salinity conditions, and remedial cementing applications at low to high temperature ranges. FP-6L A clear liquid that decreases foaming in slurries during mixing. MCS-4D A turbulent flow spacer system that prevents water and oil-base mud and cement contamination and water-wets the casing to increase bonding. Potassium Chloride A granular salt used to reduce clay swelling caused by water-base stimulation fluids. R-3 A low temperature retarder used in a wide range of slurry formulations to extend the slurry thickening time. Sodium Metasilicate An accelerator used to decrease the thickening time of cement slurries. Sodium Metasilicate An extender used to produce an economical, low density cement slurry. Report Printed on: June 11.20024:46 PM Page 13 Gr4163 -_.,-,,~, --....,..-- ~~.""'\::>;.--"-...... Aurora Well Service. LLC 1029 W Third Ave 220 Anchorage, AK 99501-1969 (907) 277-1003 -.----. \~ ~.~. .'-.-"'................----- 100951 1 WELLS FARGO BANK ALASKA NA ANCHORAGE, AK 99501-1964 89-5/1252 ~ b~'bJn~E ~- "b l\\..~s\l..o.l AOG-e.L ~\ (?~e "LuJ~Re.~ !s ~j;, g "-:r ;x;. ;~ MEMO~"Q.t\\ß'.. ,- - -- -~-- .._J ,;j .~ }~ ) TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/P ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ß~/a¿ CraL tfu¡l- 'bo2- - Rt! PTD# CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two (2) digits are between 60-69) PILOT (PH) HOLE SPACING EXCEPTION DRY DITCH SAMPLE Rev: 07110/02 C\j ody\templates 7/6 "CLUE" The permit is for a new wellbore segment of existing well Permit No, API No. Production should continue to be reported as a function' of the original API number stated above. In accordance with 20 AAC 25.005(1), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 70/80) from records, data and logs acquired for well (name on permit). Th 'þermit is approved subject to full ompliance with 20 AAC 25.055. Approval to peñorate and produce is contingent upon issuance of a conservation orO!}1aPJ,de approving a spacing exception. ~~ (Company Name) assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. WELL PERMIT CHECKLIST COMPANY AURORA FIELD & POOL 560500 - Nicolai Creek, Undefined WELL NAME NICOLAI CREEK UNIT #8 itial ClasslType DEV /1-GAS PROGRAM Exploritory (EXP) _Development (DEV) ~ Redril ~ervice (SER) _Well bore seg - Annular disposal para req GEOL AREA 820 UNIT No. 51430 ON/OFF SHORE On ADMINISTRATION APPR DATE SFD 9/6/2002 (For Service Well Only) (For Service Well Only) ENGINEERING APPR DATE ~1Wl- ~Jr'o~-- (For Service Well Only) GEOLOGY APPR DATE SFD 9/6/2002 GEOLOGY: ENGINERING: RES. ENGINERING: COMMISSION: COT: RPC: SFD: 1. Permit fee attached ... ... ...... ... ... ... ... ...... ...... ... ... ...... ... ... ...... ... ... ...... ... ... ... ... ... ... ... Yes 2. Lease number appropriate ...... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Yes 3. Unique well name and number .................................,............................................ Yes 4. Well located in a defined pool...... ...... ... ... ... ...... ... ...... ... ...... ...... ... ... ... ...... ...... ... ...... 5. Well located proper distance from drilling unit boundary... ......... ... ... ... ... ... ... ...... ...... ... 6. Well located proper distance from other wells ...... ...... ...... ... ... ...... ... ... ... ... ... ... ...... .., ... 7. Sufficient acreage available in drilling unit...... ...... ............ ... ...,..... .................. .,. ...... 8. If deviated, is wellbore plat included ... ... ... ... ... ... ... ... ... ...... ... ... ...... ... ... ...... ... ... ...... ... 9. Operator only affected party.................................................................. ............... Yes 10. Operator has appropriate bond in force ......,........................................................... Yes 11. Permit can be issued without conservation order... ...... ........................... ... ......... ...... 12. Permit can be issued without administrative approval............................................... Yes 13 Can permit be approved before 15-day wait ... ... ... ... ... ... .., ...... ... ... ... ... ...... ... ... ........ 14 Well located within area and strata authorized by Injection Order # 15 All wells witthin 1/4 mile area of review identified ... ... ... ... ... ... ... ... ... ... ... ...... ... ... ... ... ... 16 ACMP Finding of Consistency has been issued for this projec .................................... Yes 17 Conductor string provided ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ." ... ... ... ... ...... ... ... ... ... ... Yes 18 Surface casing protects all known USDWs ........ ................................................. .... . Yes 19 CMT vol adequate to circulate on conductor & surf csg ......... ........................... ......... Yes 20 CMT vol adequate to tie-in long string to surf csg ... ... ... ... ... ... ...... ... ... ... ... ... ... ...... ... ... Yes 21 CMT will cover all known productive horizons ...... ... ... ...... ... ... ... ... ... ... ... ... ... ... ... ... ... Yes 22 Casing designs adequate for C, T, B & permafrost.... ...............,..... .......................... Yes 23 Adequate tankage or reserve pit........................................................................... Yes 24 If a re-d ril I , has a 10-403 for abandonment been approved..................... ... ... ............... NA 25 Adequate wellbore separation proposed......... ......... ....... ..... .................. ... ... ......... Yes 26 If diverter required, does it meet regulations...... ............ .... .......................... ............ Yes 27 Drilling fluid program schematic & equip list adequate ............ ............... ...... ....... ........ Yes 28 BOPEs, do they meet regulation ... ... ...... ... ... ...... ... ,........ ... ... ...... ... ... ...... ... ... ... ... ... Yes 29 BOPE press rating appropriate; test to ...... ... ......... ..2500 psig ..... ................ ...... Yes 30 Choke manifold complies w/API RP-53 (May 84) ...... ............ ............... ... ... ............ ... Yes 31 Work will occur without operation shutdown ... ... ... ... ... ...... ... ... ... ... ... ... ..,... ... ... ... ... ... Yes 32 Is presence of H2S gas probable ......... ... ............ ... ... ...... ... ... ... ... ...... ... ... ...... ... ... ... 33 Mechanical condition of wells within AOR verified ...... ... ... ...... ............ ...... ...... ...... ...... NA 34 Permit can be issued w/o hydrogen sulfide measures ............ ...... ...... ... .... ..... ............ Yes 35 Data presented on potential overpressure zones... ...... .. . ... ... ......... . .. ... ............ ...... . . Yes 36 Seismic analysis of shallow gas zones...... .. . ... ... . .. .. . ... ... .. . ... ... ... .. . .. . . .. ... ... . . . ... ...... 37 Seabed condition survey (if off-shore) ... ... ... ... ... ............ ..,... ...... ... ............ .., ... ......... 38 Contact name/phone for weekly progress reports [exploratory only} .........................., Yes TEM: ~~~ JDH: WGA: MJW: DTS: a 1// r /O¿ # 10095 FEDERAL LEASE M-8426 No Vertical well targeting an undefined pool within the Tyonek Formation. No SPACING EXCEPTION REQUIRED «1500' from property line); Spacing exception approved in CO 478 on 9/5/2002 No SPACING EXCEPTION REQUIRED «3000' from 2 other gas wells); Spacing exception approved in CO 478 on 9/5/2002 No Third gas well in Sec. 29, T11 N, R12W, SM. Spacing exception approved in CO 478 on 9/5/2002 Not Applicable: vertical well Letter of Credit NZS 429815 No SPACING EXCEPTION REQUIRED; Spacing exception approved in CO 478 on 9/5/2002. No Not Applicable Not Applicable 8/5/2002: Matt Rader of DNR states Nicolai Creek project is consistent. No recorded domestic water supply wells within 5 mi of the proposed well. Closest known water well is a 120-foot deep utility water well located at NCU #3, about 3,230 feet to the east. Surface and production casing cemented to surface will protect any potential USDWs. Rig pits are small, however the planned hole sections have similar volumes to the #1 B Well spacing is close at surface Aurora has requested to drill 12-1/4" hole with a 10" diverter line. A shallow gas event was experienced drilling the NCU 1. Waiver is not recommended. No Shallow hazards analysis and drilling program address shallow gas as known hazard throughout area. Not Applicable Not Applicable J. Edward Jones, 907-277-1003 Comments" nstructions Spacing exception approved in CO 478 on 9-5-2002. SFD I WELL PERMIT CHECKUST COMPANY AURORA FIELD & POOL 560500 - Nicolai Creek, Undefined ADMINISTRATION APPR SFD DATE 9/6/2002 (For Service Well Only) (For Service Well Only) ENGINEERING APPR WGA DATE 9/3/2002 (For Service Well Only) GEOLOGY APPR DATE SFD 9/6/2002 WELL NAME NICOLAI CREEK UNIT #8 nitial ClasslType DEV /1-GAS PROGRAM Exploritory (EXP) _Development (DEV) ~ Redril ~ervice (SER) _Well bore seg - Annular disposal para req GEOL AREA 820 UNIT No. 51430 ON/OFF SHORE On 1. Permit fee attached............,..."..,.,.......................,..............................,...,........... 2, Lease number appropriate ... ,..... .... ..... ......... ... ,.......,.,....... ..., ,.........,.." ,.,.., ,.......,.. 3. Unique well name and number,..."..,...,...,.,....,...,.,....,.,........................................ 4. Well located in a defined pool................................................................................ 5, Well located proper distance from drilling unit boundary .".,....",.., .,...,.......,....,.....,.,... 6. Well located proper distance from other wells .".,."",.,..,..,..."...,., ..."...,.........,..."..... 7, Sufficient acreage available in drilling unit................................................................ 8, If deviated, is wellbore plat included ........................................................................ 9, Operator only affected party........,... ...... .............".....,." ... ........".,..,...... ......,......." 10. Operator has appropriate bond in force .................................................................. 11. Permit can be issued without conservation order ." ".",.., """ ...." ... ,..... ".....,..""."", 12. Permit can be issued without administrative approval............................................... 13 Can permit be approved before 15-day wait................................. .......................... 14 Well located within area and strata authorized by Injection Order # 15 All wells witthin 1/4 mile area of review identified..................................................... 16 ACMP Finding of Consistency has been issued for this projec .................................... 17 Conductor string provided"....."......".....".,..........,..,..,...............................,........ 18 Surface casing protects all known USDWs ..,..,...",..".,.......,...,.."........"...,.......,.",. 19 CMT vol adequate to circulate on conductor & surf csg ............................................. 20 CMT vol adequate to tie-in long string to surf csg ..................................................... 21 CMT will cover all known productive horizons......................................................... 22 Casing designs adequate for C, T, B & permafrost................................................... 23 Adequate tankage or reserve pit........................................................................... 24 If a re-drill, has a 10-403 for abandonment been approved........................................ 25 Adequate wellbore separation proposed..,....., ....... ..... ... ...,.. .,..." ,..".. ,..... ..., ,.,.".,.. 26 If diverter required, does it meet regulations......................................................... .. 27 Drilling fluid program schematic & equip list adequate.............................................. 28 BOPEs, do they meet regulation.......................................................................... 29 BOPE press rating appropriate; test to .................... psig ........................... 30 Choke manifold complies w/API RP-53 (May 84) ..................................................... 31 Work will occur without operation shutdown........................................................... 32 Is presence of H2S gas probable.......................................................................... 33 Mechanical condition of wells within AOR verified.................................................... 34 Permit can be issued w/o hydrogen sulfide measures............................................... 35 Data presented on potential overpressure zones... .. ..... .. ...... .. .... ... ...... ... ... ...... ...... .. 36 Seismic analysis of shallow gas zones ,..,....,............,..,.,.,...........................,......... 37 Seabed condition survey (if off-shore) .................................................................... 38 Contact name/phone for weekly progress reports [exploratory only] .......................... GEOLOGY: ENGINERING: RES. ENGINERlNG: COMMISSION: RPC: TEM: JDH: COT: 8m) WGA: MJW: DrS: Yes Yes Yes # 10095 FEDERAL LEASE M-8426 No Vertical well targeting an undefined pool within the Tyonek Formation. No SPACING EXCEPTION REQUIRED «1500' from property line); Spacing exception approved in CO 478 on 9/5/2002 No SPACING EXCEPTION REQUIRED «3000' from 2 other gas wells); Spacing exception approved in CO 478 on 9/5/2002 No Third gas well in Sec. 29, T11N, R12W, SM, Spacing exception approved in CO 478 on 9/5/2002 Not Applicable: vertical well Yes Yes Letter of Credit NZS 429815 No SPACING EXCEPTION REQUIRED; Spacing exception approved in CO 478 on 9/5/2002. Yes No Yes Not Applicable Not Applicable 8/5/2002: Matt Rader of DNR states Nicolai Creek project is consistent. / ". Yes No recorded domestic water supply wells within 5 mi of the proposed well. Closest known water well is a 120-foot deep utility water well located at NCU #3, about 3,230 feet to the east. Surface and production casing cemented to surface will protect any potential USDWs. ) Yes Yes Shallow hazards analysis and drilling program address shallow gas as known hazard throughout area. Not Applicable Not Applicable J. Edward Jones, 907-277-1003 Yes Comments/Instructions Spacing exception approved in CO 478 on 9-5-2002. SFD Well will be mudlogged from conductor to TD (drilling program, item 3). Well will be logged from surface casing shoe to TD with PEX-AITH (induction, SP, GR, CNL, FDC, and GR-Sonic) and FMI.