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Home My WebLink AboutCO 762CONSERVATION ORDER 762 Docket Number: CO -18-031 1. September 27, 2018 Hilcorp application for spacing exception H-04-1,04 2. October 7, 2018 Notice of hearing, affidavit of publication, email distribution, mailings STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7" Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating LLC to drill, complete, test, and produce the Hansen H -04-L04 development oil well branch within the same governmental quarter section as, and within 1,000 feet of, a well that is, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO -18-031 Conservation Order 762 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H -04-L04 Oil Development Well Branch Kenai Peninsula Borough, Alaska November 19, 2018 1. By a letter received October 1, 2018, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the statewide spacing requirements of 20 AAC 25.055 to drill, complete, test, and produce the Hansen H-04-1,04 development oil well branch within the same governmental quarter section as, and within 1,000 feet of, a well that is, or may be capable of, producing from the same pool. 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for November 8,2018. On October 4, 2018, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On October 7, 2018, the AOGCC published the notice in the ANCHORAGE DAILY NEWS. 3. BlueCrest sent by certified mail notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the proposed Hansen H-04-1,04 development well branch—i.e., the State of Alaska and the Bureau of Ocean Energy Management—and provided the notice, addresses to which the notices were delivered, and Certified Mail receipts. 4. No comments or request for hearing were received regarding B1ueCrest's application. 5. The tentatively scheduled public hearing was vacated. 6. B1ueCrest's application provided sufficient information upon which to make an informed decision. FINDINGS: 1. BlueCrest is the operator and sole working interest owner of the Cosmopolitan Unit, located within the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. Hansen H -04-L04 will be a horizontal, development oil well branch drilled directionally to the northwest from an onshore surface location at 2,173 feet from the south line (FSL) and 1,552 feet from the east line (FEL) of Section 2, Township 4 South, Range 15 West (RI 5 W), Seward Meridian (S.M.). The top of the Hansen Undefined producing interval location will lie offshore about 1,859 feet FSL and 548 feet FEL of Section 32, Township 3 South (T3S), CO 762 November 19,2018 Page 2 of 3 R15W, S.M. The bottom -hole location will lie offshore about 2,687 feet FSL and 1,852 feet FEL of Section 32, T3S, R15W, S.M. 3. For well branch Hansen H-04-1,04, the kick-off point, top -of -productive interval, and bottom - hole locations will lie within State of Alaska lease ADL 384403. 4. Hansen H -04-L04 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H -04-L04 will be located within the same governmental quarter section as the Hansen I development oil well, and within the same governmental quarter section as, and within 1,000 feet of, development oil well Hansen H-04 and development oil well branches Hansen H -04-L03, Hansen H -04-L05, Hansen H -04-L06, and Hansen H-04-1,07 that are, or may be capable of, producing from the same oil pool. 6. The well path and bottom -hole location for Hansen H -04-L04 were chosen—based on reservoir mapping and modeling results—to ensure greater ultimate recovery by maximizing the amount of wellbore open to the reservoirs and extracting oil that cannot be efficiently produced by existing wells. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(3) is necessary to allow the drilling, completion, testing, and regular production of the Hansen H -04-L04 development oil well branch at a location that will maximize resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H-04-1,04 well branch will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: The AOGCC grants B1ueCrest's October 1, 2018, application for an exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production of the Hansen H-04-1,04 development oil well branch within the Hansen Undefined Oil Pool. BlueCrest may proceed as long as it complies with all applicable laws, and all other legal requirements DONE at Anchorage, Alaska and dated November 19, 2018. �� -0 Hollis S. French Cathy . Foerster Daniel T. Seamount, Jr. Chair, Commissioner Commissioner Commissioner CO 762 November 19, 2018 Page 3 of 3 As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration, If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 71h Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating LLC to drill, complete, test, and produce the Hansen H -04-L04 development oil well branch within the same governmental quarter section as, and within 1,000 feet of, a well that is, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO -18-031 Conservation Order 762 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H -04-L04 Oil Development Well Branch Kenai Peninsula Borough, Alaska November 19, 2018 1. By a letter received October 1, 2018, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the statewide spacing requirements of 20 AAC 25.055 to drill, complete, test, and produce the Hansen H -04-L04 development oil well branch within the same governmental quarter section as, and within 1,000 feet of, a well that is, or may be capable of, producing from the same pool. 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for November 8,2018. On October 4, 2018, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On October 7, 2018, the AOGCC published the notice in the ANCHORAGE DAILY NEWS. 3. BlueCrest sent by certified mail notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the proposed Hansen H-04-1,04 development well branch—i.e., the State of Alaska and the Bureau of Ocean Energy Management—and provided the notice, addresses to which the notices were delivered, and Certified Mail receipts. 4. No comments or request for hearing were received regarding B1ueCrest's application. 5. The tentatively scheduled public hearing was vacated. 6. BlueCrest's application provided sufficient information upon which to make an informed decision. FINDINGS: 1. BlueCrest is the operator and sole working interest owner of the Cosmopolitan Unit, located within the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. Hansen H -04-L04 will be a horizontal, development oil well branch drilled directionally to the northwest from an onshore surface location at 2,173 feet from the south line (FSL) and 1,552 feet from the east line (FEL) of Section 2, Township 4 South, Range 15 West (RI 5W), Seward Meridian (S.M.). The top of the Hansen Undefined producing interval location will lie offshore about 1,859 feet FSL and 548 feet FEL of Section 32, Township 3 South (T3S), CO 762 November 19, 2018 Page 2 of 3 R15W, S.M. The bottom -hole location will lie offshore about 2,687 feet FSL and 1,852 feet FEL of Section 32, T3S, Rl5 W, S.M. 3. For well branch Hansen H -04-L04, the kick-off point, top -of -productive interval, and bottom - hole locations will lie within State of Alaska lease ADL 384403. 4. Hansen H -04-L04 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H -04-L04 will be located within the same governmental quarter section as the Hansen IA development oil well, and within the same governmental quarter section as, and within 1,000 feet of, development oil well Hansen H-04 and development oil well branches Hansen H -04-L03, Hansen H -04-L05, Hansen H -04-L06, and Hansen H -04-L07 that are, or may be capable of, producing from the same oil pool. 6. The well path and bottom -hole location for Hansen H -04-L04 were chosen—based on reservoir mapping and modeling results—to ensure greater ultimate recovery by maximizing the amount of wellbore open to the reservoirs and extracting oil that cannot be efficiently produced by existing wells. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(3) is necessary to allow the drilling, completion, testing, and regular production of the Hansen H -04-L04 development oil well branch at a location that will maximize resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H -04-L04 well branch will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: The AOGCC grants BlueCrest's October 1, 2018, application for an exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production of the Hansen H -04-L04 development oil well branch within the Hansen Undefined Oil Pool. BlueCrest may proceed as long as it complies with all applicable laws, and all other legal requirements DONE at Anchorage, Alaska and dated November 19, 2018. /signature on file// //signature on file// //signature on file// Hollis S. French Cathy P. Foerster Daniel T. Seamount, Jr.t 3 Chair, Commissioner Commissioner Commissioner 'sfa�nonco` CO 762 November 19, 2018 Page 3 of 3 As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be ertoneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period urns until 5:00 p.m. on the next day Bernie Karl K&K Recycling Inc. Gordon Severson Penny Vadla P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 George Vaught, Jr. Darwin Waldsmith Richard Wagner P.O. Box 13557 P.O. Box 39309 P.O. Box 60868 Denver, CO 80201-3557 Ninilchik, AK 99639 Fairbanks, AK 99706 o�� N STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISINGORDER NO, CERUFIED AFFIDAVITOF PUBLH ATION WITH ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUMBER AO -19-011 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Samantha Carlisle DATE OF A.O.AGENCY 10/4/2018 PHONE: 907 279-1433 333 West 7th Avenue Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: 907 276-7542 TO PUBLISHER: Anchorage Daily News LLC SPECIAL INSTRUCTIONS: PO Box 140147 Anchorage, Alaska 99514-0174 Form: 02-901 Revised: 10/3/2018 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -18-027 Docket Number: CO -18-028 Docket Number: CO -18-029 Docket Number: CO -18-030 Docket Number: CO -18-031 Docket Number: CO -18-032 Docket Number: CO -18-033 Docket Number: CO -18-034 The applications of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H-04 well and the Hansen H -04 -LO I, Hansen H- 04 -L02, Hansen H -04-L03, Hansen H-04-1,04, Hansen H -04-L05, Hansen H-04-1,06, and Hansen H -04-L07 well branches. BlueCrest, by letter dated September 27, 2018, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirement of 20 AAC 25.055 because the proposed well and well branches will be drilled within the same governmental quarter sections as, and lie within 1,000 feet of wells or well branches that are, or maybe capable of producing from the same pool. The AOGCC has tentatively scheduled a public hearing on this application for November 8, 2018, at 10:00 a.m. at 333 West 7t" Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on October 24, 2018. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after October 25, 2018. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7a' Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on November 7, 2018, except that, if a hearing is held, comments must be received no later than the conclusion of the November 8, 2018 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than November 5, 2018. //signature on file// Cathy P. Foerster Commissioner Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669-7714 George Vaught, Jr. Darwin Waldsmith Richard Wagner P.O. Box 13557 P.O. Box 39309 P.O. Box 60868 Denver, CO 80201-3557 Ninilchik, AK 99639 Fairbanks, AK 99706 AFFIDAVIT OF PUBLICATION Account#: 270227 Order# ST OF AK/AK OIL AND GAS Cost CONSERVATION COMMISSION 333 WEST 7TH AVE STE 100 anirunaarc av ooSniigio STATE OF ALASKA THIRD JUDICIAL DISTRICT Sarah Jennett being first duly sworn on oath deposes and says that he/she is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on October 07. 2018 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate gfiated private individuals. S4scribed and sworn to before me this 8th day of October, 2018 11 t JI Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION Notary Public BRITNEY L. THOMPSON State of Alaska My Commission Expires Feb 23, 2019 0001428719 Product ADN -Anchorage Daily News $283.88 Placement 0300 Position 0301 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -18-027 Docket Number: CO -18-028 Docket Number: CO -18-029 Docket Number: CO -18-030 Docket Number: CO -18-031 Docket Number: CO -18-032 Docket Number: CO -18-033 Docket Number: CO -18-034 The applications of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H-04 well and the Hansen H-04-1-01, Hansen H-04-1-02, Hansen H-04-1-03, Hansen H-04-1.04, Hansen H- 04-1-05, Hansen H-04-1-06, and Hansen H-04-1.07 well branches. BlueCrest, by letter dated September 27, 2018, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirement of 20 AAC 25.055 because the proposed well and well branches will be drilled within the same governmental quarter sections as, and lie within 1,000 feet Of wells or well branches that are, or maybe capable of producing from the same pool. The AOGCC has tentatively scheduled a public hearing on this application for November 8, 2018, at 10:00.a.m. at 332 West 7th Avenue, Anchors a, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be 2IOe 8 with the AOGCC no later than 4:30 p.m. on October 24, If a request for a hearing is not timely filed, the AOGCCmay consider the issuance of an order without a hearing. To learn I the AOGCC will hold the hearing, call (907)793-1221 after October 25, 2018. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7th Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on November 7, 2018, except that, if a hearing is held, comments must be received no later than the conclusion of the November 8, 2018 hearing. If, because of a disability, special accommodations may be needed t0 comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombia, at'(907) 793-1221, no later than November 5, 2018. //signature on file// Cathy P. FOerster Commissioner Published: October 11 Ih3 ueC est En&gy Cosmopolitan Project BlueCrest Energy - H04-1-04 Spacing Exception_AOGCC 3301 C Street, Suite 202, Anchorage, AK 99503 Larry Burgess Phone: (907)754-9552 Email: (burgess@bluecrestenergy.com September 27, 2018 Alaska Oil and Gas Conservation Commission 333 West 7n' Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception for H04-1.04 Onshore Horizontal Producer Dear Commissioners, BlueCrest Alaska Operating LLC hereby applies for a spacing exception for the horizontal production well H044O4. Reservoir modeling indicates that the optimum spacing for the laterals is 800'. Because of that spacing, the laterals conflict with each other. Also, due to the 303° azimuth we are drilling for hole stability, there are multiple instances where two or more of the laterals will be within the same Y. section. Accordingly, an exception to statewide spacing requirements is requested. BlueCrest Energy is the only effected working interest owner and operator within the leasehold contacting the Cosmopolitan Undefined Oil Pool. The Bureau of Ocean Energy Management (BOEM) and Alaska Department of Natural Resources Division of Oil and Gas (ADNR DOG) have been notified of BlueCrest Energy's intent to submit this application for exception. The necessary documentation confirming notice is included in the attached. For these reasons, in lieu of pool rules that would allow for this unique and field specific spacing, BlueCrest Energy is requesting a spacing exception. Please find attached for the review of the Commission the information required by 20 ACC 25.055 for this well bore. If you have any questions or require further information, please do not hesitate to contact Andrew Buchanan at 907-754- 9563. Sincerely, Larry Burrges/rssj / Alaska Manager BlueCrest Energy- H04 -L04 Spacing Exception_AOGCC DlueNeSt Energy Application for Spacing Exception Horizontal Producer H04 -L 04 Table of Contents Cosmopolitan Project H04-104 Application for Spacing Exception 20 AAC 25.055. Drilling units and well spacing.......................................................... 2 1. Requirements of 20 AAC 25.055(a)........................................................................ 2 2. Requirements of 20 AAC 25.055 (b)....................................................................... 2 3. Requirements of 20 AAC 25.055(c)........................................................................ 2 4. Requirements of 20 AAC 25.055 (d)....................................................................... 3 5. Attachments.............................................................................................................3 Attachment 1 Spacing Exception Platt......................................................................................................... 3 Attachment2 Affidavit.............................................................................................................................. 3 Attachment 3 Notification Information....................................................................................................... 3 11Page H04 -L04 Application for Spacing Exception DIuNest Energy 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) Cosmopolitan Project H04-104 Application for Spacing Exception The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; Not Applicable — Well is not within 500' of the federal lease line (2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; Not Applicable — Wellbore is drilling for oil. (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the some Pool; Please see Attachment 1: Spacing Exception Platt (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the some pool. Not Applicable — Target is the Cosmopolitan Undefined Oil Pool 2. Requirements of 20 AAC 25.055 (b) A well may not begin regular production of oil from a property that is smaller than the governmental quarter section upon which the well is located or begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in and the right to share in the production from the quortersection orsection, respectively, have been pooled under AS 31.05.100. BlueCrest Energy is the only operator and 100% working interest owner within the Cosmopolitan Unit. 3. Requirements of 20 AAC 25.055 (c) A pooling agreement under AS 31.05.100 must be filed with the commission before regular production from the affected property begins. The leases currently being exploited by BlueCrest Energy all fall within the currently unitized Cosmopolitan Unit. Pool rules are not currently identified. 21Page H04-1-04 Application for Spacing Exception IueC,iest Energy 4. Requirements of 20 AAC 25.055 (d) Cosmopolitan Project H04-104 Application for Spacing Exception The commission will review on application for on exception to the provisions of this section in accordance with 20 AAC 25.540. The applicant for an exception shall send notice of the application by certified mail to the owners, landowners, and operators described in (1) of this subsection and shall furnish the commission with a copy of the notice, the date of mailing, and the addresses to which the notice was sent. The application must include (1) the names of all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil or within 3,000 feet of a well drilling for gas for which an exception is sought; BlueCrest Energy LLC Alaska Division of Natural Resources (ADNR) Bureau of Ocean Energy Management (BOEM) Please see Attachment 3: Notification Information (2) a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells; and Please see Attachment 1: Spacing Exception Platt (3) an affidavit by a person acquainted with the facts, verifying that all facts are true and that the plat correctly portrays pertinent and required data. Please see Attachment 2: Affidavit 5. Attachments Attachment I Spacing Exception Platt Attachment 2 Affidavit Attachment 3 Notification Information 31Page H04 -L04 Application for Spacing Exception lue st Entergy September 27, 2018 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Spacing exception for the proposed H04-1.04 Well Dear Commissioners, Cosmopolitan Project BlueCrest Energy - H04-1-04 Affidavit BlueCrest Alaska Operating LLC 3301 C Street, Suite 202 Anchorage, AK 99503 BlueCrest Alaska Operating LLC is requesting a spacing exception for the proposed H04404 well. I, Andrew Buchanan, verify that the fads stated are true and the plat correctly portrays all pertinent and required data. Regards, i Andrew Buchanan Sr. Operations Geologist BlueCrest Alaska Operating LLC Phone(907)754-9563 The foregoing Instrument was acknowledged before me on the qday of M &-f 2018. By Andrew A. Buchanan. Notary Public in and for Alaska My Commission Expires: 12-101 /8 Brunt H. Warrick Votary Pu61ic, State ofAlaska Commission # 141201020 My Commission Expires December 1, 2018 ....v "`mob 2 1 .n BrueCresf Energy - H04 -L04 Affidavit H04 and H04 -L04 with 1000' Radius Around Production Section �ADL39190 H74 ADB Confidential p J. H12 `=EC 27 T3s. RI SW 3M SEC 28. T]S, R15W SM Tn Hansen IA 1rz H04-1-04 Surface Location (NAD 27) Northing: 2,144,623.03', Easting 168,812.80' 2,173' FSL, 1,552' FEL, Sec. 2, T4S, R15W SM Surface Casing Point Northing: 2,145,687.06', Easting 165,349.46' 3,143' FSL, 5,044' FEL, Sec. 2, T4S, R1 SW SM Kick Off Point Northing: 2,149,999.68, Easting: 154,113.81' 1859 FSL, 548' FEL, Sec. 32, T3S, R1 5W SM Total Depth Northing: 2,150,864.4T, Easting: 152,833.34' 2,687' FSL, 1,852' FEL, Sec. 32, T3S, R15W SM Cosmopolitan Unit Development Date 26/092018 Company 1 BlueCrest Energy ADL18790'. 0 1000 2000 3000 4000 5000WS 1:30000 SEC 35, T35. 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