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HomeMy WebLinkAbout207-005THE STATE °fALASKA July 24, 2019 GOVERNOR MIKE DUNLEAVY Ms. Lindsay Wright SEQ Specialist and Land Technician ENI US Operating Co Inc 3800 Centerpoint Drive, Suite 300 Anchorage, AK 99503-5818 Re: Location Clearance Rock Flour #2 (PTD 2061660) Rock Flour #3 (PTD 2070050) Maggiore #1 (PTD 2070060) Nikaitchuq #1 (PTD 2040180) Nikaitchuq #2 (PTD 2040380) Nikaitchuq #3 (PTD 2042600) Nikaitchuq #4 (PTD 2050010) Dear Ms. Wright: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 v .00gcc.aloska.gov Eni US Operating Company Inc. (Eni) has requested guidance regarding the final site clearances for seven exploration wells located on its leases. The seven referenced wells are listed above. All seven wells have been plugged and abandoned in accordance with Alaska Oil and Gas Conservation Commission (AOGCC) regulations and the approved sundry applications. The AOGCC approves the location clearances for these seven wells. The Maggiore #1, Rock Flour 42 and Rock Flour #3 well sites were initially inspected by the AOGCC on July 12, 2007. Due to debris left at the sites, final location clearances were not issued at that time. The sites were subsequently cleaned by Eni between August 1, 2010 and August 3, 2010. Photographs of these three well locations taken during the inspections and a closeout report were provided to AOGCC on October 1, 2010 and October 11, 2010, respectively. After a thorough review, these onshore well sites were found to be in compliance with location clearance requirements as stated in 20 AAC 25.170. By email dated July 2, 2008, the AOGCC responded to requests from the prior operator (Kerr- McGee) and the State of Alaska Department of Environmental Conservation concerning the status of the four offshore Nikaitchuq wells. The AOGCC responded that the wells were plugged and abandoned as required by AOGCC regulation 20 AAC 25.112 and offshore location clearance requirements as stated in 20 AAC 25.172. The AOGCC requires no further work on the subject wells or locations at this time. However, Eni remains liable if any problems occur with these wells in the future. Sincerely, '?"AtZ"'dL� Jessie L. Chmielowski Commissioner • _• McMains, Stephen E (DOA) From: Conway atrick Patrick.Conwa eni etroleum.com] Y � Y@ p Sent: Wednesday, October 27, 2010 1:03 PM To: Regg, James B (DOA) Cc: Schwartz, Guy L (DOA); McMains, Stephen E (DOA); Fairbanks, Trevor P (DNR); Graika Don; Brink Jason Subject: RE: ENI exploration site cleanup Attachments: Cement and waterbody.jpg; Cement.jpg; Maggiore.jpg; P8240021.jpg; StickPicking effort.doc Jim, I apologize for the delayed response. I was on R &R when you're message came in and it slipped through the cracks. The 7/12/2007 agency inspection was conducted while the stickpicking operation was ongoing. Fairweather employees returned to the sites in the days following the inspection and retrieved the debris that was identified in the AOGCC report associated with that visit. Rock Flour concrete and 12x12 timber were removed at that time. In August of 2010 I visited Maggiore, Rock Flour 2 and Rock Flour 3 via a helicopter. We assessed aerially, then landed and walked down each site. With the exception of the concrete that was found at Maggiore and a few small, weathered pieces of wood (presumably broken pallets and survey lathe), the sites were free of man made debris. With respect to the waterbodies at Maggiore, the depth of water is approximately 6 -12 ". No casing stub or man made debris is visible. Patrick Conway /Don Graika Nikaitchuq Environmental Coordinator JUN f) 6 2O1t (0) 907 - 670 -8501 ito (C) 907 - 903 -1762 From: Regg, James B (DOA) [mailto:jim.regg ©alaska.gov] Sent: Monday, October 11, 2010 4:41 PM To: Conway Patrick Cc: Schwartz, Guy L (DOA); McMains, Stephen E (DOA); Fairbanks, Trevor P (DNR) Subject: FW: ENI exploration site cleanup I've read through the string of emails and reviewed your 9 page "ClosureDocumentation" which is inclusive of several photos of debris at and recovered from Maggiore 1, and single photos from overflight of RockFlour 2 and 3 locations. Please provide additional description regarding statement you make below in an email to DNR's Trevor Fairbanks - "At this time it was determined that Rock Flour 2 and 3 had been cleared of all debris identified in 2007." - When was the debris from Rock Flour locations removed? - How did you determine adequacy of Rock Flour locations site clearance? - Did you land at the Rock Flour locations? Inability to do on- ground survey was deficiency noted in Rock Flour 2 location clearance inspection conducted in 2007. Regarding Maggiore 1, settlement and ponding appears to have developed at the location. The 2007 inspection did not identify any settlement/ponding issues. Have you assessed if this settlement is coincident to the P &A'd well? Is casing stub exposed below water level? Jim Regg Inspection Supervisor AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907 - 793 -1236 1 • • From: Schwartz, Guy L (DOA) Sent: Monday, October 11, 2010 3:09 PM To: Regg, James B (DOA) Subject: FW: ENI exploration site cleanup Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) From: Conway Patrick [mailto: Patrick .Conway @enipetroleum.com] Sent: Friday, October 01, 2010 3:54 PM To: Schwartz, Guy L (DOA) Cc: Brink Jason; Graika Don Subject: FW: ENI exploration site cleanup Guy, As requested, the message that was sent to DOG (Trevor Fairbanks) and the documentation certifying final cleanup of the well sites for Eni explorations wells Maggiore #1 and Rock Flour #2 & #3 are attached. Please don't hesitate to call if you have any questions. Patrick Conway /Don Graika Nikaitchuq Environmental Coordinator (0) 907 - 670 -8501 (C) 907 - 903 -1762 From: Conway Patrick Sent: Tuesday, August 24, 2010 4:01 PM To: 'Fairbanks, Trevor P (DNR)'; Graika Don Cc: Easton, John R (DNR) Subject: RE: ENI exploration site cleanup Trevor, A reconnaissance flight was conducted on August 1, 2010 to document the condition of each of the sites described in the attached document titled "AOGCC Letters ". Eni representatives Patrick Conway and Mark Lowther were onboard. At this time it was determined that Rock Flour 2 and 3 had been cleaned of all debris identified in 2007. The 12x12 timber at Maggiore 1 that was referenced in the report had been removed. However, two relatively small chunks of cement remained at this site. At the time appropriate tools were not available to remove the remaining cement pieces from this location. On August 3, 2010 Conway returned to Maggiore 1 with Steve Millea and Caitlin Crandall to remove the remaining cement. Approximately 400 pounds of cement was broken into more manageable pieces and loaded onto the helicopter. As built drawings and photos of each location are included in the attachment titled "ClosureDocumentation ". Please don't hesitate contact Don /me with any further questions. Thanks, Patrick Conway /Don Graika Nikaitchuq Environmental Coordinator 2 Office: 907 - 670 -8501 • • Cell: 907 - 903 -1762 From: Fairbanks, Trevor P (DNR) [mailto :trevor.fairbanks @alaska.gov] Sent: Monday, August 16, 2010 1:09 PM To: Graika Don Cc: Conway Patrick; Easton, John R (DNR) Subject: ENI exploration site cleanup Don, ENI has surrendered several lease including Maggorie and Rock flour sites. According to our records both sites had some debris reported onsite as of 2007. Patrick said that he visited the sites and removed the debris the first week of August. In order for us to release the acreage we need verification that the site been cleaned. Therefore, in lieu of flying DOG staff to the site to verify they have been cleaned up a report stating the location of sites visited, material removed, people present along with pictures before and after should be suffice. Please let me know if you have any questions, Thanks Trevor Trevor Fairbanks DNR Division Oil and Gas 550 West 7th Avenue, Suite 800 Anchorage, AK 99501 Tel: 269 -8885 This message may contain information that is confidential, and is being sent exclusively to the Recipient. If you are not the designated Recipient, you are prohibited from utilizing, copying or divulging the information contained in this message,or taking any action whatsoever on the basis of the information herein. If you have received this message by mistake, we ask you to kindly inform the Sender and to delete the message. It is understood that, with regard to messages sent by its network, the Company is not responsible for any statements made or opinions expressed, that are not strictly related to the Company's operations. This message may contain information that is confidential, and is being sent exclusively to the Recipient. If you are not the designated Recipient, you are prohibited from utilizing, copying or divulging the information contained in this message,or taking any action whatsoever on the basis of the information herein. If you have received this message by mistake, we ask you to kindly inform the Sender and to delete the message. It is understood that, with regard to messages sent by its network, the Company is not responsible for any statements made or opinions expressed, that are not strictly related to the Company's operations. 3 Regg, James B (CED) 1 t 2670050 From: Schwartz, Guy L (DOA) Sent: Tuesday, October 5, 2010 11:22 AM To: Conway Patrick Cc: Brink Jason; Regg, James B (DOA) Subject: RE: ENI exploration site cleanup Patrick, The photo documentation is sufficient for the final site clearance. We will be issuing a letter to you shortly for these wells stating the site has been cleared by AOGCC. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Conway Patrick [mailto:Patrick.Conway@enipetroleum.com] Sent: Friday, October 01, 2010 3:54 PM To: Schwartz, Guy L (DOA) Cc: Brink Jason; Graika Don Subject: FW: ENI exploration site cleanup Guy, As requested, the message that was sent to DOG (Trevor Fairbanks) and the documentation certifying final cleanup of the well sites for Eni explorations wells Maggiore #1 and Rock Flour #2 & #3 are attached. Please don't hesitate to call if you have any questions Patrick Conway/Don Graika Nikaitchuq Environmental Coordinator (0)907-670-8501 (C) 907-903-1762 From: Conway Patrick Sent: Tuesday, August 24, 2010 4:01 PM To: 'Fairbanks, Trevor P (DNR)'; Graika Don Cc: Easton, John R (DNR) Subject: RE: ENI exploration site cleanup Trevor, A reconnaissance flight was conducted on August 1, 2010 to document the condition of each of the sites described in the attached document titled 'AOGCC Letters". Eni representatives Patrick Conway and Mark Lowther were onboard. At this time it was determined that Rock Flour 2 and 3 had been cleaned of all debris identified in 2007. The 12x12 timber at Maggiore 1 that was referenced in the report had been removed. However, two relatively small chunks of cement remained at this site. At the time appropriate tools were not available to remove the remaining cement pieces from this location. On August 3, 2010 Conway returned to Maggiore 1 with Steve Millea and Caitlin Crandall to remove the remaining cement. Approximately 400 pounds of cement was broken into more manageable pieces and loaded onto the helicopter. As built drawings and photos of each location are included in the attachment titled "ClosureDocumentation". Please don't hesitate contact Don/me with any further questions • Day 1 7/10/07 12:30 pm start due to foggy conditions — clean -up of Maggiore #1 and Rock Flour #3 The 1st day of clean -up involved Maggiore #1 and Rock Flour #3 along with a significant portion of the ice road. Both locations were strewn with trash involving absorbent rags, plastic, safety glasses, wrenches, pallets (broken), delineators and survey stakes. Each location took approximately 3 hours to pick -up and the ice road roughly two hours. Maggiore #1 had a very large 12" X 12" timber that could not be picked -up on Day 1, so it was decided to leave it until Day 4 when we could get the helicopter closer to the location. Rock Flour #3 has a large cement block still on location. It measures approximately 5 ft. X 3 ft. and weighs close to 200 pounds. This piece was also left in place because of its size. Rock Flour #3 had an inordinate amount of trash. The ice road from Maggiore #1 to the north included survey stakes, delineators, orange plastic snow fencing and miscellaneous items dropped from trucks. Seven miles of ice road were picked up before flying back to Deadhorse for the evening. Day 2 Date? 12:30 pm start due to foggy conditions — clean -up of Hemi State well and Rock Flour #2 Day 2 concentrated on cleaning up the Hemi State well, Rock Flour #2 and a stretch of ice road approximately 3 miles long. Hemi State was reasonably clean since it had limited work and equipment on location. However. we left in place some large timbers on the sides of the pad due to their size. Rock Flour #2 had significant trash and locations that appeared to have had a snow blower chewing up pallets and survey stakes. This pad was the worst of the ENI project and took approximately 3.5 hours to clean with 3 pickers. The mud spill site was spotted and marked with stakes and sand bags. The ice road from Rock Flour #2 to the MP 1 pad was picked up with another significant amount of trash located at the site of the 22 man camp and the guard shack. At 8:00 pm I drove to the intersection of the ENI ice road with the Spine Road and met with DNR officials about the East Creek crossing. In attendance were Jack Winters and Bill Morris who escorted me to the place of concern. They mentioned that gravel will have to be moved back into place due to flooding and a rush of water that washed it from its original location. Approximately 50 to 100 yards of area of the fish - bearing stream are affected. According to Bill Morris, the slotting of the ice bridge or the piling of overburden snow was done incorrectly and caused the damning of water that eventually forced its way through the slot where the ice bridge was cut. Unfortunately, there are no pictures and this is speculation. The DNR will provide us with pictures of the area taken in the summer of 2006. Day 3 Date? 9:00 am start due to foggy conditions — agency inspection day with ice road clean -up. • • Day 3 started with the agency visits to the individual sites and picking up Gordon Matumeak in Nuiqsut. I informed Gordon that the ice road trash pick -up was not completed and he informed me that he would rather inspect the road once it was done. Later in the day Gordon was taken back to Nuiqsut to return at a later date. Bob Britch will be taking ADEC out to the spill site in August and this would be a good time for Gordon to visit. DNR and AOGCC visited all 4 sites and told us that they would sign off on each site. They were later taken back to Deadhorse. The trash crew returned to the field and picked up approximately 7 miles of ice road. Delineators, survey stakes, snow fences, foam, absorbent pads, headlights, tools, front - loader teeth, banding and miscellaneous wood littered the road. At 6:00 pm I drove to Oliktok Point to clean the ENI pad at Nikaitchuq and found the surface area littered with wood pieces, absorbent pads, plastic, foam and other miscellaneous forms of trash. A very large amount of debris was located over the sides of the pad on the ocean side. The west side of the pad is approximately 40 feet high and very steep. It will be a tough clean -up effort to get it picked. Day 4 Date? 10:30 am start due to foggy conditions — videographer day with ice road clean -up. Day 4 started with the videographer recording video of the surrounding area and Maggiore #1. At this time the large timber and some cement chunks were picked up as the videographer was recording. Proceeded north along the ice road and saw an occasional survey stick along the way. We circled over Rock Flour #3 and flew to a nearby river channel for the videographer. Once the videographer was finished, the trash pick -up continued with delineators, flagging and any other objects of significance. Due to time restrictions, some survey stakes remain on the ground. PHOTOS • ' .. b 8 �'}' �y. y i�..i . t yM1 tea: v f . 8 + " fi �Y -ire 4 ,,:" r -,. w t �1{ r Y t h ,., s , ■ Rock Flour #2 after clean -up — shows mud -spill in- between two yellow sand bags . " . x i - Y r ir - • r'� .,. Maggiore #1 after clean -up • • • •�� . 'Es , c�yiKyw� • _, 4 : '04 'i "r�E.�h•. s, .. &' t.4y i!e * ti ♦ l S K ; f ,C.'R S 1q '''T" v S.{ Z • , • • • q Maggiore #1 after clean -up — shows large 12X12 timber that has been picked up. • 0 , ...', , ,,,...!$....,:.,,.:•,..,_ ; ._:;tt.-1: .f-1 ,b.,:' • , j .. t e Yom w c3 Y4 .„ fir * i ;''. a tiK A t � F .. w Maggiore #1 after clean -up • i • Maggiore #1 after clean -up r ,r , . %.0 " ' Ae. a let � ' P " + L ''..4--- x `.h,�w its' .... ' k 1Fi r , . i ''' ' ' n .a. ,'* . , F t P :-A , .a 1 S' n A fh ✓ q"� "t4 : � ,N +.c . y , ' y r „ a ra y- V,� t ^r ',:f.,•:'''''.1'. • f �;..' i •.. F .: x. Y x ' ° 5 r �r y sE.i.•ti t ri. 47:::�� : t k . , •�r•'�,, Y' t � t a l . .,A' ....sU '•'. � ,, , "yk1: 'r : V 'q � { ��KA�i `'. ad ,'iF +{ �. � .a+t #+ $:.•_ - ;r$ ' y :7}'1 A' �. .�C � `! x. { t� xF a. ` '-T p : . f +.t e a, ,y f '.. Y � t " V" r 3 , r • dF � ,� ' ,',"..ht.... , . c`&`.a -.��. Yif t C 1� �3 +- , � ' t rI � ..�' ' .� � 4 e ro Maggiore #1 `- �., ..'' 3 f i b 4 ; },,, . t - ` ; - x ; ,• . ' • soil mound — .'''',1:.,, r { f ,. " . • t yp i cal of all � ; -;�,< � . • • _ _ r t " • " t. . I,- r, -;!--...`.. *Se Nt t . - . • + .f, . ,fir ♦;:w". -, -- ? e'�4. , t • i f y X 4 4 lb,. saimwille6*, . ,, r Rock Flour #3 after clean -up. Shows cement block that was left • • Rock Flour #3 after clean -up. Shows cement block that was left • t I r• • t� i . r •. . . s ... Le.';,.. '� " .. 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I w 's, , a Hf � 1 • ` +mac. • -ttr > , � � n �. s G 7+ \ .• w ! 4 0: , . 5 t • • ~Sl~u~~~ 0~ a~Q~~(Q /,~,..w.ELLw....~. June 24, 2010 Maurizio Grandi Wells Operation Project Manager ENI US Operating Company ~~x~~~.~ ; ~~,, s~ ~fj1~~~ 3800 Center Point Drive, Suite 300 Anchorage, AK 99503 Subject: Location Clearance Rock Flour #3 (PTD 207-OOa) Dear Mr. Grandi: We have been informed by State of Alaska Department of Natural Resources (DNR) that lease ADL-0389118 expired due to the Rock Flour Unit being voluntarily terminated by ENI US Operating Company, Inc. Our records indicate a location site clearance was performed July 12, 2007 by an Alaska Oil and Gas Conservation Commission (Commission) inspector, a DNR inspector and two Fairweather employees. The inspection identified further work needed to be completed prior to final location clearance approval. Attached are the Commission reports documenting the Rock Flour location clearance inspections noting the deficiencies, namely the inability to do an on-ground assessment of the Rock Flour #2 location and cement debris found at the Rock Flour #3 well location. Please contact Jim Regg at 907-793-1236 to arrange for final inspections of the Rock Flour well Location. Sincerely, Daniel T. Seamount, Jr. Chair, Commissioner Attachments • • MEM~RAl~D~JM State of ~4laska Alaska Oil and Gas Conservation Commission TO: Jim Regg --;~~ -~f I-~i ~ DATE: July 12, 2007 ~~ P. I. Supervisor ~ ~' FROM: Bob Noble SUBJECT: Location Clearance Petroleum Inspector Hemi St 3-9-11 (PTD 169-037) Rockflour #2 (PTD 206-166) Rockflour #3 (PTO 207-005) /J Maggiore #1 (PTD 207-006) July 12, 2007; I traveled to Exxon exploration well Hemi State 3-9-11, and ENI exploration wells Rockflour #2, Rockflour #3, and Maggiore #1 PTO 207-006 to verify location clearance. I was accompanied on the trip with a DNR inspector, a Field inspector for the North Slope Borough (Gordon Matumeak), and two Fairweather employees heading up the location clearance. We were able to land at all locations except Rockflour #2. Summary: I recommend that we land at Rockflour #2 for a better look. I feel there /" needs to be further cleanup work done at Rockflour #3, Hemi State 3-9-11, and Maggiore #1 as detailed in attached location clearance forms. Attachments: Photos Surface Abandonment/Location Clearance/ Suspended Well Forms 1) Hemi State 3-9-11 2) Rockflour #2 3) Rockflour #3 ~~ 4) Maggiore #1 • • t_acation Clearance lnspec4ion - tZockftour 3 Photos by AOGCC Inspector Bob Noble July 12, 2007 Cement chunks on mound at RockFlour 3 wellbore location (note-- drilled from ice padl • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Surface Abandonment /Location Clearance /Suspended Well ( Title 20 AAC 25.170 ) ~~, ~'~ FILE INFORMATION: Operator ENI Well Name: Rocktlour #3 Address: PTD No.: 207-005 API No. 50-_ Surface Location (From Sec. Line)' Unit or Lease Name; Morth/South EastArJest Field and Pool: Section: _ Tavmship: _ Range: i hAeridian: _ Downhole P3~A Date: 20 AAC 25.120 -ABANDONMENT MARKER: Insp. Date: Surface Monument Approva( Date: Post OD: (4" min) _" Length: ft. Set on (Wellhead, Csg , In Cmq Height above final grade (4' min.j: _ ft. Casing stub _ ft. belov~ final grade Top of Marker Post Closed ? _ All openings closed ? Inspector. Insp. Date: Subsurface Monument Approvat Date: Marker Plate Diameter. _" Distance below final grade Level: Thickness: _" Side Outlets removed or closed: Marker Plate Attached To Conductor_ (Y/N) Cement to surface (all strings)? Ins ector: Exact Information Beadtvelded Directly to Marker Post or Blind Marker Plate: Insp. Date: Approvat Date: Inspector: Insp. Date: 20 AAC 25.170 -LOCATION CLEANUP: Approval Date: Pit's filled in? Yes Liners Removed or Buried? Yes Debris Removed: Yes Notes: General condition of padllocation: Good (Rough, Smooth, Contoured, Ftat, Natural ) Notes: Type of area surrounding location: Good (Wooded,Tundra,Grass,Brush.Dirt,Gravel,Sand) Debris on surrounding area: Notes: Access road present? No Type road: Ice (Dirt, Gravel, Ice, Other) Condition: Condition of road: Notes: Cellar filled in? Yes Type of filL• Gravel Height above grade: 4' Notes: Type vrork needed at This location: There teas one lar a chunk of cement on the ravel ile over the cellar. I feel it should be removed. " Other than that thin s looked rett ood. Ins actor: Bob Noble RECOMMENDED FOR APPROVAL OF ABANDONMEI Yes No_~_ (If "No' See Reason ) t l Distribution: Reason: ~C'Lu~~~-CLt,6(rll~~ (~~ /:~(,~{ ~c:~C~~~-ct~'~ ~r!(a`it~C~ ~~ 2i{,(C`y'C?G•t orig -Well file C - Opeiotar Firi^ai Inspection peilarriied? Y~ iVV ~ c -Database ' c -Inspector Final Approval By: DATE: Title: i' ~' Z~1c~ Sheet by L_G. 8:5100 2007-0712_Loc_Clearance RockFlour3_bn.xis 7/f8.%2007 DATA SUBMITTAL COMPLIANCE REPORT 3/26/2009 Permit to Drill 2070050 Well Name/No. ROCK FLOUR 3 Operator ENI PETROLEUM API No. 50-029-23341-00-00 MD 4278 TVD 4278 Completion Date 3/4/2007 REQUIRED INFORMATION Mud Log Yes Samples No DATA INFORMATION Types Electric or Other Logs Run: Text too lengthy for this data field see 10-407 BFL Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Type ~Iled/Frmt Number Name Scale Media No EDo~'~C Lis 14563~Induction/Resistivity EDP C Pdf 14564~ee Notes C Pdf 14565 R port: Final Well R ED C Las 14566'~Induction/Resistivity ED~C 14567 wee Notes Y ~ /~~ ~~NV Q~rs~-'~~ E D /C Las 14568~duction/Resistivity N £D C Las 14569 ~duction/Resistivity ~D C Las 14570(j(nduction/Resistivity TD C Dls 15098 wee Notes ~D C Las 15099'~Porosity Gamma Ray 5 Col 1 Magnetic Resonance 5 Col 1 Gamma Ray 5 Col 1 Completion Status P&A Current Status P&A UIC N Directional Survey No (data taken from Logs Portion of Master Well Data Maint Interval OH / Start Stop CH Received Comments Open Multi Data entry Open Side Wall Core Analysis w/Photos 0 0 Open Final Well Report w/Mudlogs, and Morning Reports. 1900 4272 Open LAS, GR, CAL, Dept 0 0 Open Field Reports, Processing reports 1816 4236 Open LAS Sonic 1842 4241 Open Dept, CAL, GR, TEN 3460 4130 Open Dept, CAL, GR, CNCF, 0 0 Open Raw data of Calibration. Is with Rock Flour 2 Disk 3460 4130 Open 5/7/2007 LAS, Cali, Por, Comp Neu and with Meta Data. 2006 4270 Open 5/7/2007 High Def Induc Log, GR, Cal 3-Feb-2007 3500 4100 Open 5/7/2007 MREL 4-Feb-2007 2006 4270 Open 5/7/2007 Multi Array Acousticlog, GR 3-Feb-2007 DATA SUBMITTAL COMPLIANCE REPORT 3126/2009 Permit to Drill 2070050 Well Name/No. ROCK FLOUR 3 Operator ENI PETROLEUM API No. 50-029-23341-00-00 M~ 4278 TVD 4278 Completion Date 3/4/2007 Completion Status P&A Current Status P&A UIC N Log See Notes 5 Col 1 2006 4270 Open 5/7/2007 Digital Spectalog 3-Feb- 2007 .Cog Neutron 5 Col 1 2006 4270 Open 5/7/2007 High Definition Induc Log, Mutli Array Acousticlog, Comp-Z-Densilog, Comp Neu, GR Caliper 3-Feb- 1 2007 LOg ~Nedtrer~>~T,tiZ.~~, ~ ~~-- 5 Col 1 2006 4270 Open 5/7/2007 High Definition Induc Log, Mutli Array Acousticlog, Comp-Z-Densilog, Comp Neu, GR Caliper 3-Feb- 2007 og Induction/Resistivity 5 Col 1 2010 4200 Open 5/7/2007 Star, Resis Imaging, Circumferental Borehole Imaging Log 4-Feb-2007 ~ 'Log See Notes Col 1 3360 4158 Open 5/7/2007 Res Characterization Instrument, Sampleview Log, Fast Response Quartz Gauge GR log 5- iLog See Notes `~ \~ ~~'~~~~~1~~1 ~ 5 Col 1 3360 4158 Open 5/7/2007 Feb-2007 Res Characterization ~ Instrument, Sampleview Log, Fast Response Quartz Gauge GR log 5- Feb-2007 ~og Induction/Resistivity 25 Col 100 4278 Open 5/7/2007 TVD GeoVision Res Service Recorded Mode, Composite Log 3-Feb-2007 /Log Mud Log 2 Col 110 4278 Open 5/7/2007 Formation Log MD 2-Feb- 2007 Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments _ _ _ - - -f -- _ _ ___----- Cuttings^~ 110 4278 - - - ---- -- - - - 1187 ~res and/or Sam - __ . --- ples are required to be submitted. This record automatically created from Permit to Drill Module on: 1124/2007. s DATA SUBMITTAL COMPLIANCE REPORT 3/26/2009 Permit to Drill 2070050 Well Name/No. ROCK FLOUR 3 MD 4278 TVD 4278 ADDITIONAL INFORMATION Well Cored? l~/ N ~ ~ C- Chips Received? Y /~ Analysis ~/ N Received? Comments: Completion Date 3/4/2007 Operator ENI PETROLEUM Completion Status P&A Current Status P&A Daily History Received? ~" N Formation Tops ~ N - _- - - Compliance Reviewed By: __ API No. 50-029-23341-00-00 UIC N Date: ~_ ~ °~9~ MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg ~`~~1 ~ f a~~~L ~ DATE: July 12, 2007 P. I. Supervisor I h ~" ( f FROM: Bob Noble SUBJECT: Location Clearance Petroleum Inspector Hemi St 3-9-11 (PTD 169-037) Rockflour #2 (PTD 206-166) Rockflour #3 (PTD 207-005) Maggiore #1 (PTD 207-006) July 12, 2007: I traveled to Exxon exploration well Hemi State 3-9-11, and ENI exploration wells Rockflour #2, Rockflour #3, and Maggiore #1 PTD 207-006 to verify location clearance. I was accompanied on the trip with a DNR inspector, a Field inspector for the North Slope Borough (Gordon Matumeak), and two Fairweather employees heading up the location clearance. We were able to land at all locations except Rockflour #2. Summary: I recommend that we land at Rockflour #2 for a better look. I feel there needs to be further cleanup work done at Rockflour #3, Hemi State 3-9-11, and Maggiore #1 as detailed in attached location clearance forms. Attachments: Photos Surface Abandonment/Location Clearance/ Suspended Well Forms 1) Hemi State 3-9-11 2) Rockflour #2 3) Rockflour #3 4) Maggiore #1 • • Location Clearance Inspection -Rockflour 3 Photos by AOGCC Inspector Bob Noble ,July 12, 2007 Cement chunks on mound at Rockflour 3 wellbore location (note -drilled from ice pad) i ~ 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Surface Abandonment /Location Clearance /Suspended Well ( Title 20 AAC 25.170 ) ~~~i~ ~~~ `~~'I~~(~~ FILE INFORMATION: Operator: ENI Well Name: Rockflour #3 Address: PTD No.: 207-005 API No. 50- Surface Location (From Sec. Line): Unit or Lease Name: North/South East/West Field and Pool: Section: _ Township: _ Range: _ Meridian: _ Downhole P&A Date: 20 AAC 25.120 -ABANDONMENT MARKER: Insp. Date: Surface Monument Approval Date: Post OD: (4" min)__ " Length: ft. Set on (Wellhead, Csg , In Cmt) -_ Height above final grade (4' min.): _ ft. Casing stub ft. below final grade Top of Marker Post Closed ? _ _ _ All openings closed ? Inspector: Insp. Date: Subsurtace Monument Approval Date: Marker Plate Diameter: " Distance below final grade Level: Thickness: _ " Side Outlets removed or closed: Marker Plate Attached To Conductor _ - (Y/N) Cement to surface (all strings)? Ins ector: Exact Information Beadwelded Directly to Marker Post or Blind Marker Plate: Insp. Date: Approval Date: Inspector: Insp. Date: 20 AAC 25.170 -LOCATION CLEANUP: Approval Date: Pit's filled in? Yes Liners Removed or Buried? Yes Debris Removed: Yes Notes: General condition of pad/location: Good (Rough, Smooth, Contoured, Flat, Natural ) Notes: Type of area surrounding location: Good (Wooded,Tundra,Grass,Brush,Dirt,Gravel,Sand) Debris on surrounding area: Notes: Access road present? No Type road: Ice (Dirt, Gravel, Ice, Other) Condition: Condition of road: Notes: Cellar filled in? Yes Type of fill: Gravel Height above grade: 4' Notes: Type work needed at this location: There was one lar a chunk of cement on the ravel ile over the cellar. I feel it should be removed. Other than that thin s looked rett ood. Ins ector: Bob Noble RECOMMENDED FOR APP/R~~OVAL OF ABANDONMEt Yes No_~ (If "No" See Reason ) Distribution: Reason: ~-(~~,tL~°>.~ ~~'{,I,i~t~~~ ~ (-~~.~ ~~C.i:;~v~~ ~t,;;t~~L~ ~ ~{,~~;'~J~(~ orig -Well file v - viper atVr FII lal II IJ~Jelitl Vll pe~Vl llled? Ye$ IVCI c -Database c -Inspector Final Approval By: DATE: Sheet by L.G. 8/5/00 Title: 2007-0712 Loc_Clearance_RockFlour-3_bn.xls /' ,./' /~ ~~' ~~`~I 7/16/2007 • ~A ~~~~ fi.` Fairweather EFtP Services, lnc. 2000 E. 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 brian.brigandi(c~fairweather.ca SHIP TO Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 907-793-1225 BILL TO ~o~-~ ITEM # DESCRIPTION QUANTITY 1 Rock Flour #3 -SLB -GeoVision Resistivity Service -TVD 1.00 2 Rock Flour #2 -SLB -ARC tt RAB Resistivity Log - MD 1.00 3 Rock Flour #2 -SLB -ARC 8 RAB Resistivity Log -TVD 1.00 4 Maggiore #1 -SLB -ADN Vision Quadrants Recorded Mode Log - MD 1.00 5 Maggiore #1 -SLB -Vision Services Composite Recorded Mode Log -TVD 1.00 6 Maggiore #1 -SLB -GeoVision Resistivity Service -TVD 1.00 Z Maggiore #1 -SLB -Vision Services Composite Recorded Mode Log - MD 1.00 8 Maggiore #1 -SLB -ADN Vision Quadrants Recorded Mode Log -TVD 1.00 9 Rock Flour #2 -, Epoch -Formation Log MD 1.00 10 Rock Ftour #3 -Epoch -Formation Log MD 1.00 11 Maggiore #1 -Epoch -Formation Log MD 1.00 12 Maggiore #1 - BH -Res. Characterization Inst. Log - GR Log 1.00 13 Maggiore #1 - BH - Sidewall Corgun 1.00 14 Maggiore #1 - BH - 6-Arm Caliper Log, Gamma Ray Log 1.00 15 Maggiore #1 - BH -Magnetic Resonance Explorer Log 1.00 16 Rock Flour #3 - BH -HDIL/XMAC/ZDL/CN/GR/CALI logs 1.00 17 Rock Flour #3 - BH -Digital Spectralog 1.00 18 Rock Flour #3 - BH - Multipole Array Acoustilog -Gamma Ray Log 1.00 19 Rock Flour #3 - BH -Magnetic Resonance Explorer Log 1.00 20 Rock Flour #3 - BH -HDIL/GR/CALI logs 1.00 21 Rock Flour #3 - BH -ZDL/CN/GR/CALI logs 1.00 ~~~~-~~ RECE!'O/ED DATE May 4, 2007 MAY 0 7 200 CUSTOMER ID AOGCC Oil & Gas Cons. Commisslol~ And>lorage Please contact Brian Brigandi at [907-343-0319] with any questions or comments. I "il .^7~ ~. a. r , ;... ~ A ~ i..A., f _ a '. Fairweather E~tP Services, Inc. 2000 E. 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 brian.brigandi(a~fairweather.co SHIP TO Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 907-793-1225 DATE May 4, 2007 CUSTOMER ID AOGCC BILL TO ITEM # DESCRIPTION QUANTITY 22 Rock Flour #3 - BH -Star Resistivity Imaging -CBIL logs 1.00 23 Rock flour#3 - BH -RCI short logs 1.00 24 Rock Flour #3 - BH -RCI long logs 1.00 25 Rock Flour #2 - BH -HDIL/XMAC/ZDL/CN/GR/CALI logs 1.00 26 Rock Flour #2 - BH -Digital Spectralog 1.00 27 Rock Flour #2 - BH - Multipole Array Acoustilog -Gamma Ray Log 1.00 28 Rock Flour #2 - BH -Magnetic Resonance Explorer Log 1.00 29 Rock Flour #2 - BH -HDIL/GR/CALI logs 1.00 30 Rock Flour #2 - BH -ZDL/CN/GR/CALI logs 1.00 31 Rock Flour #2 - BH -Hexagonal Diplog -CBIL logs 1.00 32 Rock Flour #2 - BH -RCI short logs 1.00 33 Rock Flour #2 - BH -RCI long logs 1.00 34 Rock Flour #2 - BH - Sidewall Corgun 1.00 Please contact Brian Brigandi at [907-343-0319] with any questions or comments. 1201 Louisiana St Suite 3540 Houston, Texas 77402 - U.SA. Phone {7I3) 393 6100 Fax (713) 393 b395 March 29, 2007 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7~' Ave., Suit 100 Anchorage, Alaska 99501 RE, We11 Completion Report ENI Petroleum; Rock Flour #3 {PTD 207-005) Dear Commissioner Norman, CJ ~i RE~~IVED MAR 3 Q 2007 Alaska Qil & Gas Cans. Commission Anchorage ENI Petroleum hereby submits its Well Completion Report for the work performed in drilling its Rock Flour #3 exploration well on the North Slope. Please find enclosed the following information for your files: 1) Form 10-407 Well Completion Report or Re-completion Report and Log 2) Well As-Built Survey 3) Wellbore Schematic 4) WeII Operations Summary 5) Photographic documentation of surface P&A 6) CD's containing the mud log and all LWD, MWD and wireline logs run. If you have any question ar require additional information, please contact me at {713) 977-5799 or Bill Penrose at {907) 258-3446. Sincerely, ENI PETROLEUM ~, David Dougah HSE Manager Enclosures Cc: Matteo Rivetti-ENI Bill Penrose-Fairweather ~CC~EIVED STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMM~ION MAR 3 Q 2007 WELL COMPLETION OR RECOMPLETION REPORA~a~b~t,t 1a. Well Status: Oil ^ Gas ^ Plugged ^ Abandoned Q Suspended ^ 2oAACZS.1os 20AAC25.110 GINJ^ WINJ^ WDSPL^ WAG^ Other^ No. of Completions: 1b. Well Class: ApCf10f8~@ Development ^ Expl ratory0 Service ^ StratigraphicTest^ 2. Operator Name: Eni Petroleum 5. Date Comp., Susp., or Aband.: 3/4/2007 ' 12. Permit to Drill Number: 207-005 ~" 3. Address: 1201 Lousiana St. Suit 3500, Houston, TX, 77002 6. Date Spudded: 1/27/2007 ~ 13. API Number: 50-029-23341-00 4a. Location of Well (Governmental Section): Surface: 1889' FEL 2483' FSL, Sec 29, T10N R11 E, UM ~ 7. Date TD Reached: 2/2/2007 14. Well Name and Number: Rock Flour #3 " Top of Productive Horizon: 1869' FEL 2483' FSL, Sec 29, T10N R11 E, UM 8. KB (ft above MSL): 130 Ground (ft MSL): 98 15. Field/Pool(s): Exploratory - Total Depth: 1869' FEL 2483' FSL, Sec 29, T10N R11 E, UM 9. Plug Back Depth(MD+TVD): Surface 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 575242.44 y- 5,920,043.47 Zone- 4 10. Total Depth (MD +TVD): 4,278' MD/TVD 16. Property Designation: ADL 389118 TPI: x- 575242.44 y- 5,920,043.47 Zone- 4 Total Depth: x- 575242.44 y- 5,920,043.47 Zone- 4 11. SSSV Depth (MD +TVD): wA 17. Land Use Permit: WA 18. Directional Survey: Yes ^ No Q (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: WA (ft MSL) 20. Thickness of Permafrost (TVD): ~G 3 ~ ~- 3~~ 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Mud Log, LWD: GR/Geovision Resistivity/Sonic, WL:SGR/CN2DUHDIUXMAC/SP/MSFUGR/MREX/STAR/RCINSP/SWC 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 13-3/8" 58# L-80 Surface. 117' Surface 117' Grouted to surtace None 9-5/8" 40# L-80 Surafce 2,010' Surface 2,010' 12-1/4" Cmtd to surf w/ 314 bbls None 23. Open to production or injection? Yes ^ No Q If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED N/A 26. PRODUCTION TEST Date First Production: Well not tested or produced. Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate ~ Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (corr): 27. CORE DATA Conventional Core (s) Acquired? Yes ^ No ^~ Sidewall Cores Acquired? Yes ^~ No ^ If Yes to either question, list formations and intervals cored (MD+TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. Intervals cored ranged from 3,356' to 4,158'. Detailed descriptions will be submitted separately upon receipt from the analysis lab. See mud log for lithology. No gas or water encountered. Oil shows in the intervals 2,300' - 2,350' and 3,515' - 3,535'. . I ~ APR ~ 10D7 Form 10-407 Revised 2/2007 ,.. ,, ~ ~ ~ ~ ~ ~ LCONTINUED ON REVERSE SIDE ~~,. a'! ~~ '`- ~ ~~~~ ~ ' sion i ~ ~~ 28. GEOLOGIC MARKERS (last all formations and markers encountered}: 29. FORMATION TESTS NAME MD TVD Welt tested? Yes © No ~ If yes list intervals and , formations tested, briefly summarizing test results. Attach separate sheets to Permafrost -Top Surface Surface this form, if needed, and submit detailed test information per 20 AAC 25.071. Permafrost-Base 1,683 FT 1,663 FT Schrader Bluff (NA Sand) . 3,861 FT 3,861 FT Schrader Bluff (NB Sand} 3,894 FT 3,894 ~ Schrader Bluff (OA Sand} 4,058 FT 4,058 FT Schrader Bluff (OB Sand} 4,120 FT 4,120 FT Formation at total depth: Schrader Bluff f 30. List of Attachments: Wellbore schematic, Weli as-twilt diagram, Summa of o tions, Photos of P CD's containing logs. 31. I hereby certify that the foregoing is true and oorrectto the best of my knowledge. Contacti Bill Penrose 258.3446 Printed Name: Davld Dougall Title: HSE Manag e r i ` Signature: ~" ~ .~...~. °° fl '' w_ .:,,. ~ Phone: 713-977.5799 Date: ~` .~ ~"; INSTRUCTIONS General: This form is designed for submitting a coanplete and correct well completion report and log on all types of lands and leases in Alaska, Submit a well schematic diagram with each 10-407 well completicxr report and 70,404 welt sundry report when the downhole well design is changed Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Aitemating-Gas Injection, Safi Water Disposal, Water 8uppiy for Injection, Observation, or Other. Multiple completion is defined as a well produang from more than one pool with productrort from each pod completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval}. Item 8: The Kelly Bushing and Ground Leuei elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00}. item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and tease of permafnasi in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: if this well is completed for separate production from more than one interval (multiple oomple), so state in item t, and in item 23 show the producng intervals for only the interval reported in item 26. (Submit a separate form for each additronal interval to be separately produced, showing the data pertinent to such interval). Item 26: Metfrod of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the aorresponding formations, and a lxief description in this box. Submit detailed description and. analytical latxxatory infam~atkxr required by 20 AAC 25.071.. Item 29: Provide a listing of intervals tested and the corresponding formation, and 2 txief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 it ~ i ,~r ~F _N_ `~ RP-2 (353.1,$')' ~ $12" SPIKE / ~' RP-1 (18.0.0..1-') 12' SPIKE $ /~ ~~ i ~\ ~~ i~ / / /r ~- T MI06052 ~ ~ CONDUCTORR #3 a ~~ ~, •:::: :::. , :/, `~ ICE PAD AVG. PAD ELEV. t98' \~\ ~~ _~ `. -~-:: LEGEND -~- CONDUCTOR AS-BUILT SURVEY CONTROL ~- DRAINAGE PATTERN TO MP1 s~ a ~/ a~/ ,~ .:, 9 'r c ~ ! I '~~ t ~~_~ t~ i -~r- ~ .~ ` r ~. )~~, FLfOU~~~3 ~~ s !~ 1 / { ! 1 ~- ,,~ --- r .- i ~, ~ s~ ~ ; +~k~~, I ` r-i~ - ._ ~ `~ `> ~ V" t ~ ~~ ~' ~~ ~, ~ ~',._t c Lo~! ~u ~ s ~~, f ~`..~: v E ~ffi~ I ~,~ ~ n ~ i ° ~ o~ ~ -~ -~ ..~ j ~ _ .r `i t ~ / t t Est\l ~. :J~ , ~.~ .. ~~` ~. VICINITY MAP N.T.S. ~, \\ ~P~~ ° 0 F , q CqS~ ~~ ~ °49 ~ ~ `9~ e,° oo°e°.°°°°°°°° ° i~c ~, and J. O'Hanley ~s °° 11386 °° '"~'ESSIOM~- ~'P~ NOTES 1. DATE OF SURVEY: JAN 9 & 18, 2007. 2. REF. FIELD BOOK: MI07-01 PGS. 17-19, M107-01 PGS 35-36 3. COORDINATES ARE ALASKA STATE PLANE ZONE 4, NAD 27. 4. GEODETIC POSITIONS ARE NAD 27. 5. PAD AVERAGE SCALE FACTOR: 0.99990643. 6. RF-3 CONDUCTOR DIAMETER IS 13.5". 7. HORIZONTAL AND VERTICAL CONTROL IS BASED ON NGS OPUS-CORS SOLUTIONS USING DSL1, PU01 AND PBOC CORS STATIONS 8. ORTHOMETRIC HEIGHTS ARE BASED ON CORS STATIONS. THE NAD83 ELLIPSOID HEIGHT WAS THEN REDUCED TO ORTHOMETRIC ELEVATIONS. USING GOID99 MODEL. SURVEYOR'S CERTIFICATE I HEREBY CERTIFY THAT I AM PROPERLY REGISTERED AND LICENSED TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS AS-BUILT REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION AND THAT ALL DIMENSIONS AND OTHER DETAILS ARE CORRECT AS OF JAN. 18, 2007. LOCATED WITHIN PROTRACTED SECTION 29, T. 10 N., R. 11 E., UMIAT MERIDIAN, ALASKA WELL A.S.P. PLANT GEODETIC GEODETIC CELLAR SECTION NO. COORDINATES COORDINATES POSITION(DMS) POS[TION(D.DD) BOX ELEV. OFFSETS RF-3 Y=5,920,043.47 N= N/A 70'11'30.313" " 70.191754' 98 2 2483' FSL ' X= 575,242.44 E= N A 149'23'37.709 149.393808' ' FEL 1869 r. nU UCi-6 - - SPM r A ^ ' 3,. CHECKED:6ARNHART C ~ \~ - _ _ _ O (~ DATE: e,izzig7 PETROLEUM ALASKA Iu~ ~ DRAWING: I e FRE07 ENI 02-00 5liEET. EN[ PETROLEUM ~ a~~OO ~o sCA~eO ROCK FLOUR #3 WELL 0 01 0~ D7 ISSUED FDR INFCRMATIDN $PM ~ °K°'m°~°'~°""~'°~ AS-BUILT ~ OF ~ an ~r r~ar® uuc _ 7 ~ f nlrt. ^nl?: F~ :1'SICr! Fy ~~[=n- woio..vt w.m• ww ~ni 13-3/8" conductor set @ 117' .- 9.4 ppg mud 50' cement on top of retainer Cement retainer at 1,949' BOC at 2,450' ~ 9.4 ppg mud TOC at 3,400' ~ TD @ 4,278' MD/ TVD ROCK FLOUR #3 Final P &A Bridge plug at 250' ~ RKB w/permafrost cement to surface BTC surf csg set at t~ 2,010' 2,300' - 2,350' (Hydrocarbon- bearing Interval) 3,515' - 3,535' (Hydrocarbon- bearing Interval) wjp 03/14/07 • OPERATIONS SUMMARY ENI Petroleum Rock Flour #2 January 23, 2007 Prepare to move rig from Rock Flour #2 to Rock Flour #3. Blow down all water, air and mud line. Disconnect power cables and remove berming. Load out pump module and mud pit module. Move aside motor complex, clean up and move rig mats. Install towing tongue on pipe shed module. Move aside motor and pipe shed modules. Load rig mats. Pull rig substructure off mats and away from wellhead. Clean location and prepare to load out substructure. January 24, 2007 Move all rig components to Rock Flour #3 and rig up. R/U 80°Io complete. January 25, 2007 Continue rig up. Berm around rig, install pipe skate, connect Geronimo line. Spot and R/U Tioga pipe shed heaters, spot parts shed. Function test electrical and gas detection equipment. Berm around fuel tanks. Install and pressure test wellhead. Install wear bushing and diverter spool. January 26, 2007 MW 8.7 ppg Vis 69 sec Continue to N/U diverter. Remove mud cross from bottom of BOP stack. Install valves on conductor, torque BOP bolts, connect diverter line. Function test diverter, set mousehole. Load drill pipe into pipe shed and strap same. January 27, 2007 MW 8.7 ppg Vis 250 sec P/LT and rack back drill pipe. M/LT BHA. Fill hole w/ mud and pressure test pump lines. Drill 12-1/4" hole from 117' to 140'. January 28, 2007 MW 9.2 ppg Vis 250 sec Drill 12-1/4" hole from 140' to 442'. POH to BHA. Add 2 stands 6-3/4" DC's and RIH. - Drill from 442' to 1,465'. January 29, 2007 MW 9.3 ppg Vis 90 sec Drill 12-1/4" hole from 1,465' to 2,020'. CBU, short trip to 391' and back to bottom. C&C hole for casing and POH. L/D BHA. R/U to run casing, pull wear bushing. M/LJ casing hanger on landing joint and make dummy run to land hanger in wellhead. Run 48 jts 9-5/8", 40#, L-80, BTC casing. P/LT hanger/landing jt and wash to bottom. • January 30, 2007 MW 9.4 ppg Vis 55 sec CBU, R/U cementing head and equipment. Pressure test cmtg lines to 3,500 psi. Pump 291 bbls Arcticset II lead slurry followed by 23 bbls Arcticset I tail slurry. Displaced with 140 bbls mud. Bump plug, check floats - OK. R/D cementing equipment, clear floor. Replace diverter knife valve w/ blind flange. Run hanger packoff and pressure test to 5,000 psi. Set BOP test plug and fill stack with water. Pressure test BOPS to 250/3,500 psi. January 31, 2007 MW 9.4 ppg Vis 55 sec Pull BOP test plug, install wear bushing. M/U 8-1/2" BHA. Finish disposing of spud mud in pits and take on production hole drilling mud. RIH to 1,921', fill pipe and test MWD. Pressure test casing to 3,000 psi. Suspend operations due to Phase III weather. February 1, 2007 MW 9.3 ppg Vis 63 sec Dig out and re-position vac trucks for resumption of operations. Drill out wiper plugs, float collar and shoe track to 5' above float shoe. Displace spud mud from hole with fresh drilling mud. Replace shaker screens. Drill out float shoe, rat hole and 20' of new formation to 2,040'. CBU, pull up into shoe and conduct LOT to 12.3 ppg EMW. Drill 12-1/4" hole from 2,040' to 3,304'. February 2, 2007 MW 9.4 ppg Vis 63 sec Dri118-1/2" hole from 3,304' to 4,278' TD. ,, February 3, 2007 MW 9.4 ppg Vis 60 sec Short trip to shoe. RIH and ream tight spot 2,950' to 3,040'. RIH to TD, C&C well for logging and POH. L/D BHA. R/U to log, run WL logs to 4,271'. February 4, 2007 MW 9.4 ppg Vis 63 sec Continue running WL logs. M/LT RCI tool on DP and RIH. February 5, 2007 Continue RCI logging on DP. MW 9.4 ppg Vis 63 sec February 6, 2007 MW 9.4 ppg Vis 63 sec Continue RCI logging on DP. POH, remove side-entry sub, continue POH. L/D RCI tools. R/U to run VSP log, run VSP on WL. February 7, 2007 MW 9.4 ppg Vis 60 sec Finish running VSP on WL. L/D VSP tools and P/U sidewall coring tools. RIH, shoot 50 sidewall cores in two runs. POH, R/D WL. Test BOPE to 250/3,500 psi. L/D HWDP, DC's and jars. P/U 923' of 2-7/8" tbg and RIH to 2,345' on DP. • • FebruarY8, 2007 RIH to 4,278' w/ 2-7/8" cementing stinger on DP. C&C mud, R/U to cement. Mix and pump 77 bbls 15.8 ppg Class G cement, displace with 53 bbls mud. L/D DP from 4,278' to 3,400'. CBU, POH. L/D 2-7/8" tbg. M/LT 9-5/8" cement retainer on DP, RIH and set rtnr at 1,949'. Sheared off rtnr. Sting into rtnr and pump 43 bbls 15.8 ppg Class G cement chased w/ 2.5 bbls water and 27.5 bbls mud. Dumped 4.5 bbls cement on top of rtnr. Pull DP to 1,860' and CBU. Test casing to 1,500 psi for 15 minutes. POH, L/D DP to 291' . February 9, 2007 L/D extra drill pipe. P/U 9-5/8" bridge plug, RIH and set it at 250'. R/U to cement, pressure test surface lines. Mix and pump 19 bbls of 15.8 ppg Arcticset I cement. POH, L/D drill pipe, spot additional 2 bbls cmt. R/D cementers and clear floor. N/D BOPE and diverter spool. Remove wellhead and annulus valves from 13-3/8" casing. Clean pits and prepare for rig move. FINAL REPORT March 4, 2007 Use backhoe to dig down around casing stub. Cut off all casings 5' below tundra level. AOGCC rep verified cement to surface inside 9-5/8" casing and in 9-5/8" x 13-3/8" annulus. Welded on marker plate. Backfilled hole, leaving mound over it. s 'J~yi__ ~~~ ~ ~! ~ ~. ~ ~~~ > ~- r ~~~~~? ~ w~ • ~ h, ~, h~; ~,~ ~E . 1 .' ~. . ~ - ~ ~: 1 ~ , " ~~ , w N~ ~ ~, _ ~ , ~. ~ ~- , ,., , . .; ~'~ - ~ •- ~ ` . . ;~> ;. ~Y.: r S ~; ~ ij~~s: ~ t ° ~,: . ad ~" ~ a, ;k ~ ~ 1 ~ A w ~a .~ :* s ~ ~ y k .. . ~ ~"I L„ 1 ~~"~. II~ A "~( £:' •F [.,.. r MEMORAN®UM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg, ~ ~ /~~~G / ®ATE: March 4, 2007 ~~, P. I. Supervisor 4i i FROM: Bob Noble SUBJECT: Surface Abandonment Petroleum Inspector Rock Flour #3 PTD# 207-005 Sunday March 4, 2007: I traveled to ENI Rock Flour #3 exploratory location to inspect the casing cut off .and abandonment of this well All casing strings were cut off at approximately 4' below original ground level and atl were found to be full of cement. A 1 "thick marker plate was welded to the conductor casing with the required information bead welded. SUMMARY: I inspected the casing cut off depth, and the P&A marker plate on the ENI Rock Flour #3 well and found all to be in order. ATTACHMENTS: Rock Flour #3 cutoff.jpg Rock Flour #3 plate.jpg • • ~cck ~lo~r #3 ~E~~ Pat~°~le~m~ Surface ~ban~®nme~t Inspecti®~ °hoto~ from fob Roble, AOGCC March 4, 2007 Casing cut-off; cement to surface Marker plate • ~s' ___ dill February 16, 2007 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Eni Petroleum: Rock Flour #3 (PTD # 207-005) Dear Mr. Norman, ~~~~~ ~~~ q ~~s ~~ ~ ~~~ • ~p ~~~~ This is a report of Eni Petroleum's well operations on Rock Flour #3 for February 9, the last day of operations on this well. February 9, 2007 L/D extra drill pipe. P/U 9-5/8" bridge plug, RIH and set it at 250'. R/U to cement, pressure test surface lines. Mix and pump 19 bbls of 15.8 ppg Arcticset I cement. POH, L/D drill pipe, spot additional 2 bbls cmt. R/D cementers and clear floor. N1D BOPE and diverter spool. Remove wellhead and annulus valves from 13-3/8" casing. Clean pits and prepare for rig move. FINAL REPORT. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ENI PET OLEUM ~> Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. cc: David Dougall -Eni Petroleum Re: Rock Flour #3 Well Completion Report • Subject: Re: Rock Flour #3 Well Completion Report From: Thomas Maunder <tom_maunder@admin.state.ak.us> Date: Tue, 20 Feb 2007 15:16:29 -0900 ~ ~`~_ ~ ~, ~ To: Bill Penrose ~-hill~ri~~.fairi~~at.her.com> Bill, Plan to send in the report within 30 days of finalizing the P&As. Tom Maunder, PE AOGCC Bill Penrose wrote, On 2/20/2007 3:10 PM: Tom, AOGCC regulations require the filing of a Well Completion Report within 30 days of the suspension or P&A of a well. Eni's Rock Flour #2 was suspended on January 22, so its Well Completion Report is due on February 21. However, Eni recently received from the Commission an approved Sundry Application to finalize the P&A of this well and we plan to perform the P&A of both Rock Flour #2 and Rock Flour #3 (P&A Sundry already approved) in the next one to two weeks. In the interest of reducing paperwork and effort on everyone's part, I suggest the deadline for the Rock Flour #2 Well Completion Report be extended to March 7 (a two-week extension} so that the report can include the complete P&A of the well instead of one report for the suspension and one immediately following for the P&A. Please let me know what you think. Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 1 of 1 2/20/2007 3:33 PM • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: February 8, 2007 P.I. Supervisor ~~ ~ Z~i~'~~7 FROM: Chuck Scheve Petroleum Inspector SUBJECT: Plug & Abandonement Rock Flour #3 ENI Exploration 207-005 CONFIDENTIAL Section: Township: Range: Meridian: Lease No.: ADL389118 Drilling Rig: Nabors 27E Rig Elevation: Total Depth: 4278 Operator Rep.: Dean Holt CasinglTubing Data: Casino Removal: Conductor: 13 3/8 O.D. Shoe@ 117 Casing Cut@ Feet Surface: 9 518 O.D. Shoe@ 2010 _ Casing Cut@ Feet Intermediate: O.D. Shoe@ Casing Cut@ Feet Production: O.D. Shoe@ Casing Cut@ Feet Liner: O.D.. Shoe@ Casing Cut@ Feet Tubing: O.D. Tail@ Casing Cut@ Feet type Plug Type Plug Bottom Top of Cement Mud Weight Pressure Founded on (bottom uel of Cement rleoth Verified? above olua Test Aoolied Cs Shoe Retainer 2450 i 1900 no 9.4 es Type Plug Founded on: Verified? Open Hole Bottom Drillpipe tag Perforation Bridge plug Wireline tag Annulus Balanced C.T. Tag Casing Stub Retainer No Surface Bob Noble and I traveled to the ENI Rock Flour #3 location to witness the pressure test of the surface casing shoe cement plug in this well. A cement retainer had been set @ 1950 and cement of sufficient volume to fill the hole from 2450' to 1950' pumped through. the retainer. A 50' cement cap was then placed on top of the retainer. A successful 1500 psi pressure test was performed per the approved Sundry. Rev.:S/28/00 by L.R.G. Csg shoe Plug Rock Flour.xls 2116!2007 ~ ~ ~Pf~' February 9, 2007 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Eni Petroleum: Rock Flour #3 (PTD # 207-005) Dear Mr. Norman, RECEIVED ~EB:4 8 2007 ~~esk~ (ail ~. Gas Cans. Comm+ssion Anchorage This is a report of Eni Petroleum's well operations on Rock Flour #3 for the period February 2 through February 8, 2007, inclusive. February 2, 2007 Drill 8-1/2" hole from 3,304' to 4,278' TD. February 3, 2007 Short trip to shoe. RIH and ream tight spot 2,950' to 3,040'. RIH to TD, C&C well for logging and POH. L/D BHA. R/U to log, run WL logs to 4,271'. February 4, 2007 Continue running WL logs. M/LT RCI tool on DP and RIH. FebruarYS, 2007 Continue RCI logging on DP. February 6, 2007 Continue RCI logging on DP. POH, remove side-entry sub, continue POH. L/D RCI tools. R/iJ to run VSP log, run VSP on WL. February 7, 2007 Finish running VSP on WL. L/D VSP tools and P/U sidewall coring tools. RIH, shoot 50 sidewall cores in two runs. POH, R/D WL. Test BOPE to 250/3,500 psi. L/D HWDP, DC's and jars. P/U 923' of 2-7/8" tbg and RIH to 2,345' on DP. C_~ Mr. John Norman Page 2 February 8, 2007 RIH to 4,278' w/ 2-7/8" cementing stinger on DP. C&C mud, R/U to cement. Mix and pump 77 bbls 15.8 ppg Class G cement, displace with 53 bbls mud. L/D DP from 4,278' to 3,400'. CBU, POH. L/D 2-7/8" tbg. M/U 9-5/8" cement retainer on DP, RIH and set rtnr at 1,949'. Sheared off rtnr. Sting into rtnr and pump 43 bbls 15.8 ppg Class G cement chased w/ 2.5 bbls water and 27.5 bbls mud. Dumped 4.5 bbls cement on top of rtnr. Pull DP to 1,860' and CBU. Test casing to 1,500 psi for 15 minutes. POH, L/D DP to 291' . If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ENI PETROLEUM ~~~ r Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. cc: David Dougall - Eni Petroleum • ~~aTT~~rr Ie~ ~lE~ ~{ ~a ~~r+ ~y ®1~s7~~~~i~®~ 0.i® ~-7~®1` David Dougall ENI Petroleum Inc. 1201 Louisiana, St. Suite 3500 Houston, TX 77002 Re: Exploration, Wildcat, Rock Flour #3 Sundry Number: 307-053 Dear Mr. Dougall: ~~R~H PAUL, GoveR~®R 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this 8 day of February, 2007 Encl. Sincerely. • Via`' °' ~ STATE OF KA ~~'~ FEB , 0 7 2007 ALASKA OlL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNt7RY APPROYA~~ka Oil & Gas Cons. Commission 20 AAC 25.280 Ancherana ----- - - 1.Type of Request: Abandon Q' Suspend [] Operational shutdown ^ Perforate ^ Waiver ^ Other ^ Alter casing ^ Repair wail ^ Plug Perforations ^ Stimulate [] Time Extension Ghange approved program ^ Pull Tubing ^ Perforate flew Pool [] Re-enter Suspended Wetl 2.Operator Name: 4. Current Well Gass: 5. Permit to Drill Number: ENI Petroleum inc. Development Expoxatory ,, 207-005 - 3. Address: Stratigraphie ® Service ~ 6. API Number: 1201 Lousiana, St, Suit 3500, Houston, TX, T7002 54-p29.233g1.pp 7. if perforating, closest approach in pool{s) opened by this operatlon to nearest 8. Weil Name and Number. property line where ownership or IandaNmership changes: Spacing Exception Required? Yes ^ No Rock Flour #3 9. Property Designation: 10. KB Elevation (ft}: 1 i. Reid/P~i(s}: ADL 389118. 32.25' ~ EX Igrato 12. PRESENT WELL CONDITION. SUMMARY Total Depth MO {ft): Total Llepth TVD {ft): Effective Depth MD (ft}: Effective 13epth TVO {ft} Plugs {measured): Junk {measured}: 4,278' 4,278' 4,271;' 4,278' Nane None Casing Length Sizs MD TVD Burst CMlapse Structural Conductor 80' t3-318" 117` 117' Surface 1,973` 9~i18" 2010' 2,010" 5,750 psi 3,090 psi Intermediate Production Liner Perforation Depth MD {ft): Perforation Depth TVD {ft}: Tubing Size: Tuning Grade:. Tubing MD {ft): nla Na nla Na n/a Packers and SSSV Type: n/a Packers orb SSSV MO (ft): n/a 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ^Q .. Development ^ Service ^ 15. Estimated Date for 217/2007 16. Well Status after proposed work: Commencing Operations; Oil ^ Gas ^ Plugged ^ Abandoned ^ 17. Verbal Approval; Date: WAG ^ GINJ ^ WINJ ^ WDSi'L ^ Commission Representative: 1$. I hereby certify that the foregoing is true ar>d correct to the best of my knowledge. Contact. Bill Penrose 2$8-3446 Printed Name David Dougail Titie HSE Manager Signature ~, ~ Plane Date /'~'~' ~ ,~, _ " . ~ - -.- ,~ . . _.. 713.393-6122 COMMISSION USE ONLY Conditions of approvak Notify Commissan so tha# a representatlve may witness Sundry Numb: ~ ~ ""' V Plug Integrity '~ 80P Test ^ Mechanical integrity Test ^ Location Clearance '`~ Other ~ ~ StCCL ~~CSC V~ ~ ~t~s~~~~-~O'(~ ~~~'~ . ~~ `~~{ Subsequent Farm Required: 1..~('1~ ~ ~ ~~Q` Vv APPROVED BY ~-PPr~ed by: MMISSIONER TF~ COMMISSION Date: ~~-g ~ a ~" Form 10-403 Revised 06/200ti t~! ~`-~ ~- bmi# in Oupli to Eni Petroleum Rock Flour #3 Plug and Abandonment Procedure RIH with +1,000' of 3-1/2" tubing with mule shoe as cementing stinger on drill pipe. Wash down last 2 stands and tag TD with care and minimal weight. TD is expected at 4,278'. Pick up 10' to 4,268'. 2. Circulate and condition mud 3. Pump 5- 10 barrels of water ahead, ~~ ~~~ 4. Plug #1 (Open Hole): Pump~bl cement slurry mixed as follows: ,;?sacks Class G cement + 0.4% D167 + 0.3% D65 + 0.3% S 1 + 0.2% D46 + 5.09 gal/sx water, working time 3:40 hours. (1.16 cf/sk, 15.8 ppg, assumes hole size is 9") 5. Pump 1-2 bbls of water behind. Pull up to 3,400' and circulate out cement above that depth. 6. POOH, laying down all drill pipe except for 2,000' and all of the 3-1/2" cementing stinger. 7. M/U a 9-5/8" cement retainer on DP and RIH. Set retainer in casing at 1,950'. Un-sting from retainer. 8. Plug #2 (9-5/8" Casing Shoe): Mix and pump 55 bbls of cement slurry for a casing shoe plug extending from 2300' to 1900' mixed as follows: ~~ 307 sacks Class G + 1.0% D65 + 1.0% S 1 + 0.2% D46 + 3.86 gal/sx water. Working time: 4:00 hours (1.0 cf/sk, 17.0 ppg, uses 50% excess in open hole) When the cement reaches the end of the DP, sting into the retainer and squeeze 51 bbls cement through it. Un-sting from retainer and dump remaining 4 bbls cement on top of retainer. 9. Pump 1-2 bbls of water behind. Pull up to 1,850' and circulate out cement above that depth. POH, laying down all but 200' of drill pipe in preparation for rig move. • • 10. Pressure test casing and cement plug to 1,000 psi for ten minutes. 11. P/CT a 9-5/8" drillable bridge plug on DP and RIH. Set the bridge plug at 250' " RKB. 12. Plug #3 (Surface): With the drill pipe just above the bridge plug, circulate in 19 bbls of ARCTICSET I (0.93 cf/sk, 15.7 ppg) cement slurry for a surface plug. 13. POH with drill pipe and lay it down. Ensure cement fills the 9-5/8" casing to the surface after all drill pipe is pulled from hole. 14. N/D BOPE and cut off wellhead. Release rig. 15. After rig has demobed from location, use a backhoe to dig around the top of the well to seven feet below tundra level. 16. Cut off all casing strings at least five feet below tundra level and remove. 17. Ensure the 9-5/8" casing and 9-5/8" x 13-3/8" annulus are full of cement to the surface and weld on a well identification marker plate as specified in AOGCC regulations. 18. Fill the excavation over the abandoned well, leaving a soil mound to settle after the soil thaws. 19. Clean the location thoroughly so that summertime cleanup will be minimal. • r~ECEIVED ~P11 February 7, 2007 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7`h Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application to Plug and Abandon Eni Petroleum: Rock Flour #3 (PTD # 207-005) Dear Mr. Norman, EEB .0 7 2001 Alaska Oil & Gas Cons. Commission Anchorage Eni Petroleum proposes to plug and abandon its Rock Flour #3 well and move to the Maggiore #1 drilling location. The hydrocarbon-bearing intervals requiring isolation per AOGCC regulations are indicated on the enclosed wellbore schematic. The wireline logs from this well have been reviewed with your staff for their concurrence on these intervals and our plan to abandon ~ them. ~y ~,t,9 The P&A of Rock Flour #3 will be accomplished using three cement plugs as indicated on the attached wellbore diagram and procedure. Then the wellhead will be cut off at least five feet below tundra level, a well identification marker welded on and the well buried. Final site cleanup and AOGCC approval of site closure will be scheduled for next summer. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ENI PE OLEUM ~.. ~, Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. cc: David Dougall -Eni Petroleum C~ 13-3/8" conductor set @ 117' 9.4 ppg mud 50' cement on top of retainer Cement retainer at 1,950' BOC at 2,450' -~ 9.4 ppg mud TOC at 3,400' -~ TD @ 4,278' MD/ TVD ROCK FLOUR #3 Proposed P ~ A ~~ J Bridge plug at 250' RKB w/ permafrost cement to surface BTC surf csg set at ~~ 2,010' 2,300' - 2,350' - (Hydrocarbon- bearing Interval) 3,515' - 3,535' ' (Hydrocarbon- bearing Interval) wjp 02/07/07 RE: Rock Flour #3 Subject: RE: Rock Flour #3 From: Bill Penrose <bill@fairweather.com> Date: Wed, 47 Feb ?007 13:5:28 -0900 To: 7~homas ~1<~undcr ~~tom maundcr(i%adt»in.state.ak.us=> Tom, You're right. I've re-calculated it and it comes out to 69 bbls. Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 ~~ Anchorage, Alaska 99507 ~® ~® 907-258-3446 -----Original Message----- From: Thomas Maunder [mailto: tom maunderr~admin. state_._a_k.__u_s_ y _ ................._._............__._.._......................_..........._._............. Sent: Wednesday, Februar 07, 2007 1:39 PM To: Bill Penrose Subject: Rock Flour #3 Bill, As related earlier I am reviewing your sundry proposal. Operationally, the proposal is as we discussed. I have reviewed the proposed cement volumes and the proposed amounts for plugs 2 (casing shoe) and 3 (surface) appear adequate. The proposed volume for plug 1 (deep) does not appear sufficient given the desired plug length (878'), hole size (9") and cement yield (1.16). Using the dimensions. you have provided, I calculate the needed volume as 388 cubic feet or 69 bbls using 1.16 yield. Would you please confirm the needed cement volume? Thanks. Call or message with any questions. Tom Maunder, PE AOGCC 1 of 1 2/7/2007 2:05 PM Re: Rock Flour #3 Subject: Re: Rock Flour #3 From: Thomas Maunder <tom maunder@admin.state.ak.us> Date: Wed, 07 Feb 2007 14:53:22 -0900 To: Bill Penrose <bill@fairweather.com> CCs: AOGCC North Slope Office <aogcc~rudhoe bay@admin.state.ak.us> Bill, I have moved the sundry "up front" recommending approval with the increased cement volume for the deep plug. I am not sure if the approved document will be ready today. In order to assure that rig operations are not delayed, by copy of this message you have "verbal" approval to proceed. It is not necessary to tag the deep plug provided no problem is encountered setting it. Have the rig contact the Inspector for an opportunity to witness the setting of the retainer above the shoe and when the casings are cutoff prior to welding on the plate. Call or message with any questions. Tom Maunder, PE AOGCC Bill Penrose wrote, On 2/7/2007 1:59 PM: Tom, You`re right. I've re-calculated it and it comes out to 69 bbls. Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin February 07, 2007 1:39 PM To: Bill Penrose Subject: Rock Flour #3 Bill, As related earlier I am reviewing is as we discussed. I have revie~ amounts for plugs 2 (casing shoe) volume for plug 1 (deep) does not (878'), hole size (9") and cement provided, I your sundry proposal. Operationally, the proposal aed the proposed cement volumes and the proposed and 3 (surface) appear adequate. The proposed appear sufficient given the desired plug length yield (1.16). Using the dimensions you have calculate the needed volume as 388 cubic feet or 69 bbls using 1.16 yield. Would you please confirm the needed cement volume? Thanks. Call or message with any questions. Tom Maunder, PE AOGCC e~',~~ ~~ ~ ~~ 1 of 1 6/21/2007 9:31 AM state.ak.us] Sent: Wednesday, Re: Rock Flour #3 Logs ~7-aas' ~ ~ Subject: Re: Rock Flour#3 Logs From: Stephen Davies <steve_davies a~adnain.state.ak.us> i)ate: Tue, 06 Feb ?ia0~ 1?:~1:=1-1 -~ei~i:~ Tu: Rill Penm~e ~hill~a. fain~~eather.com~ C(': I c+m \-1~nu~~ler <t~~m mauuderirladmin.~,tate..~k.u; Bill: Based on the mud log and e-logs and being conservative, I'd say 2300-2350' MD and 3515 - 3535' MD appear to have hydrocarbons and must be cemented per 20 AAC 25.112 D. All other shows recorded on the mudlog appear to represent only trace amounts of residual oil, and they do not require isolation with cement. Thanks, Steve Davies AOGCC 907-793-1224 Bill Penrose wrote: Steve, '; As we discussed on the phone, the only thing missing from Eni's P&A proposal for Rock Flour #3 is an agreement with the Commission on the location(s) of hydrocarbon-bearing intervals needing isolation with ', cement. Please look at the attached logs. Eni's analysis indicates hydrocarbons in the intervals 2,300' - 2,312' and 3,520' - 3,530'. Please let me know if you see it similarly or differently so we can finalize our P&A Sundry. We expect to be ready to commence P&A activities mid-day tomorrow. !, Thanks and regards, Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 Steve Davies 1 of 1 2/7/2007 12:19 PM f ,~ „ • ~~1f February 2, 2007 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Eni Petroleum: Rock Flour #3 (PTD # 207-005) Dear Mr. Norman, ~~ ~. - `~ ~ 2007 ~s ~~€~~. Cyr; ".~^m~~~ This is a report of Eni Petroleum's well operations on Rock Flour #3 for the period January 26 through February 1, 2007, inclusive. January 26, 2007 Continue to N/CT diverter. Remove mud cross from bottom of BOP stack. Install valves on conductor, torque BOP bolts, connect diverter line. Function test diverter, set mousehole. Load drill pipe into pipe shed and strap same. January 27, 2007 P/LT and rack back drill pipe. M/i1 BHA. Fill hole w/ mud and pressure test pump lines. Drill 12-1/4" hole from 117' to 140'. January 28, 2007 Dri1L12-1/4" hole from 140' to 442'. POH to BHA. Add 2 stands 6-3/4" DC's and RIH. Drill from 442' to 1,465'. January 29, 2007 Drill 12-1/4" hole from 1,465' to 2,020'. CBU, short trip to 391' and back to bottom. C&C hole for casing and POH. L/D BHA. R/U to run casing, pull wear bushing. M/U casing hanger on landing joint and make dummy run to land hanger in wellhead. Run 48 jts 9-5/8", 40#, L-80, BTC casing. P/U hanger/landing jt and wash to bottom. January 30, 2007 CBU, R/U cementing head and equipment. Pressure test cmtg lines to 3,500 psi. Pump 291 bbls Arcticset II lead slurry followed by 23 bbls Arcticset I tail slurry. Displaced with 140 bbls mud. Bump plug, check floats - OK. R/D cementing equipment, clear floor. Replace diverter knife valve w/blind flange. Run hanger packoff and pressure test to 5,000 psi. Set BOP test plug and fill stack with water. Pressure test BOPE to 250/3,500 psi. . ~ • Mr. John Norman Page 2 January 31, 2007 Pull BOP test plug, install wear bushing. M/LT 8-1/2" BHA. Finish disposing of spud mud in pits and take on production hole drilling mud. RIH to 1,921', fill pipe and test MWD. Pressure test casing to 3,000 psi. Suspend operations due to Phase III weather. February 1, 2007 Dig out and re-position vac trucks for resumption of operations. Drill out wiper plugs, float collar and shoe track to 5' above float shoe. Displace spud mud from hole with fresh drilling mud. Replace shaker screens. Drill out float shoe, rat hole and 20' of new formation to 2,040'. CBU, pull up into shoe and conduct LOT to 12.3 ppg EMW. Drill 12-1/4" hole from 2,040' to 3,304'. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ENI PETROLEUM Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. cc: David Dougall - Eni Petroleum Re: Revised TD for Eni Rock Flour #3 (207-005) • • Subject: Re: Revised TD for Eni Rock Flour #3 (207-005) From: Thomas Maunder <tom maunder~admin.state.ak.~zs> Date: Fri, 02 Feb 200715:20:37 -0900 To: Bill Penr~~~ ~ ~-bi Il~ci.fa.irwea~her.corn~ Bill, Since the change is less than 500', it is acceptable to drill ahead to 4300'. I concur with your statement regarding the occurrence of abnormal pressure. Call or message with any questions. Tom Maunder, PE AOGCC Bill Penrose wrote, On 2/2/2007 2:57 PM: Sorry, Tom. Hit the wrong key. The currently permitted TD is 3,950'. Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. i 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 -----Original Message----- From: Thomas Maunder [mailto:tom maunders?admin.state.ak.us) Sent: Friday, February 02, 2007 2:56 PM To: Bill Penrose Subject: Re: Revised TD for Eni Rock Flour #3 Bill, The permitted TD you list was not what I heard you say when we spoke. By my records, the planned TD was 3950' which would be 350' less than the proposed new TD. Please confirm the numbers. Tom Maunder, PE AOGCC Bill Penrose wrote, On 2/2/2007 2:49 PM: Tom, Eni is approaching the permitted TD of 3,050' in its Rock Flour #3 (PTD No. 207-005) and proposes a revised TD of 4,300'. The offsetting wells encountered no abnormal pore pressure above 7,000'. In this well we're currently drilling with 9.4 ppg mud and a leak-off test conducted yesterday at 2,000' TVD yielded a 12.3 ppg EMW frac gradient, so it's Eni's opinion that extending the permitted TD by 350' to 4,300' poses no additional risk. Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2/2/2007 3:20 PM RE: Rock Flour #3 Weekly Operations Report--Question • Subject: RE: Rock Flour #3 Weekly Operations Report--Question From: Bill Penrose <bill@fairweather.com> Date: Fri, 02 Feb 2007 08:29:32 -0900 To: Thomas N~launder ~~tom maunder(ci;admin.statc.ak.us% Got back 80 - 100 bbls. Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 ~ ® ~ .--~ 907-258-3446 -----Original Message----- From: Thomas Maunder [mailto:to:r_m_aur_der:~admin.state.ak.us] Sent: Friday, February 02, 200'7...8:2.7_..._~_........._ ...................._...._............ To: Bill Penrose Subject: Re: Rock Flour #3 Weekly Operations Report--Question Bill, Only question is how much cement was circulated during the surface casing job? Thanks, Tom Maunder, PE AOGCC Bill Penrose wrote, On 2/2/2007 8:16 AM: ', Tom, ', Here's the weekly drilling report for Eni's Rock Flour #3. The original's in the mail. We should TD the well today and log over the weekend. I'll need to get with you early next week with the go-forward plan. Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 1 of 1 2/2/2007 8:46 AM • • t ~~ January 26, 2007 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Eni Petroleum: Rock Flour #3 (PTD # 207-005) Dear Mr. Norman, Ai~~~ca ail ~ ~~ ~at~~. ~~~ian ~e~~a~~age This is a report of Eni Petroleum's well operations on Rock Flour #3 for the period January 23 through January 25, 2007, inclusive. January 23, 2007 Prepare to move rig from Rock Flour #2 to Rock Flour #3. Blow down all water, air and mud line. Disconnect power cables and remove berming. Load out pump module and mud pit module. Move aside motor complex, clean up and move rig mats. Install towing tongue on pipe shed module. Move aside motor and pipe shed modules. Load rig mats. Pull rig substructure off mats and away from wellhead. Clean location and prepare to load out substructure. January 24, 2007 Move all rig components to Rock Flour #3 and rig up. R/IJ 80°Io complete. January 25, 2007 Continue rig up. Berm around rig, install pipe skate, connect Geronimo line. Spot and R/U Tioga pipe shed heaters, spot parts shed. Function test electrical and gas detection equipment. Berm around fuel tanks. Install and pressure test wellhead. Install wear bushing and diverter spool. If you have any questions or require additional information, please contact me at 258- 3446. ~ • • Mr. John Norman Page 2 Sincerely, For ENI PETROLEUM /. Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. cc: David Dougall - Eni Petroleum ~.. SARAH PALIN GOVERNOR 1~T oi/d-7~ ~~ oast ~S 333 W. 7th AVENUE, SUITE 100 COl`S~RQ~~Qi` C01•'1(~~~~~''IQ~ f ANCHORAGE, ALASKA 99501-3539 ~ PHONE (907) 279-1433 FAX (907) 276-7542 David Dougall HSE Manager ENI Petroleum 1201 Louisiana Street, Suite 3500 Houston, TX 77002 Re: Exploratory, Rock Flour #3 ENI Petroleum Permit No: 207-005 Surface Location: 2252' FSL, 1811' FEL, Sec. 29, T l ON, R 11 E, UM Bottomhole Location: 2252' FSL, 1811' FEL, Sec. 29, T10N, R11E, UM Dear Mr. Dougall: Enclosed is the approved application for permit to drill the above referenced exploratory well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is .spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. 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. When the pilot hole plugging plan is determined, ENI should file a Sundry Notice (Form 403) providing the determined formation information and planned plug depths. 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 the terms and conditions of this permit may result in the revocation or suspension of the permit. t. ENI Petroleum Rock Flour #3 Permit No: 207-005 When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659- 3607 (pager). DATED this ~ day of January, 2007 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Mr. Bill Penrose -Fairweather STATE OF ALASKA JA N Y 7 2007 ALASKA OfL AND GAS CONSERVATION COMMI ~iON ~ C~ PERMIT TO DRILL Alaska pil & Gas Gnfls. Ct~rrlmission 20 AAC 2s.oos Rn~-._.®__ ia: Type of Work: Dn1i [ i ] RedriH ^ Re-entry ~] 1b, Current Well Gass: Exploratory ~ Stra~dyraphic Test ^ Service (~ Multiple Zone ^ Development 4i! ^ Develapna}nt Gas ^ Single Zane ^ 1c. Specify if we11 is proposed far: Coalb~! Methane ^ Gas Hydrates ^ Shale C,as ^ 2.Operatar Name: Ent Petroleum 5. Bond: Blanket ^ Single Welt ^ Bow Na. RLB000862~ /• /? • 11. Weti Name artd Number ~ Rack Flour #3 3. Address: 1201 Louslana, St Suit 3500, Houston, TX, 77002 B. Proposed Depth: MD: 3950' Tup~ 3.g~' 12. Field/Pod(s): 4a. Location of Well {Govemmentai Section): Surface: 1811` FEE, 2552' FSL, Sec 29, T10N, R71E, UM • 7. Property Designation: ADL 3$8118 Exploratory Tap of Productive Horizons 1$11` Ff.L, 2552' FSL, Sec 29, T10N, Ri1E, UM 8. Land Use Permit NIA 13. Approximate Spud Date: W ~ ~ ~7 Total Depth- 1811' EEL, 2552' FSL, Sec 2S, T10N, R17 E, UM 9. Acres in Property: 2523 14. Distance to Nearest Property; 2,890' 4b. Location of Weil (State Base Plane Coordinates): Surface: x- 57524,2.3 y- 5920043.5 Zone- 4 10. KB Elevation (Height above GL): 32,25 feet 15. Distance to Nearest Weil Within Pod: 4 mites 1&. Deviated wells: NIA Kickoff clap#h; feet Maximum Hole Ars}le; degn~s 17. Maximum Anticipated Pressures in psig (sce 20 AAC 25.()35) Downhole: 1,849 psi Surface: 1,060 psi "' 18. Casing Program: Specificatans Top - .Setting Depth -Bottom Cerra Quantity, c.f. or secs Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data} Driven 13-3/8" 68# L-80 BTC Stl' 0 0 BO' 80' Grouted to surface 12-1/4" 9.5I8" 4011 L-80 BTC 2,950' 0 0 3 704 Cu. Ft, ~ 409E xs 19. PRESENT WELL CONDfflON SUMMARY (To be completed for RedriA and Re-Entry Operations) Total Depth MD {ft}: Totd Depth TVD (ft}: Plugs (measured}: Effect. Depth MD (ft}: Eff+sct. Depth TVD (ft}; Junk (measured); Casing Length Size Cement Volume MD TVD ConductorlS#uchual Surface intemrediate Production Liner Perforation Depth MD (ftj: ~~.) Perforation Depth TVD (ft): 20. Attachments: Filing Fee BOP Sketch Q Drilling Program Q Time v. Deptl~ Plot ^ ShaNow Hazard Analyses ^ Property Pint ^ Diverter Sketch ^ Seabed Report ® Drilling Fluid Program Q 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: 22. I hereby certify that the fore~ing is true and correct Printed Name David Dougati Signature ,~ ~' date Contact BIN Penrose 258,7446 Titre HSE Man Phone 713393-6122 Date 1 ~ t~ 7` Commission Uss Only PermiE to Drill Nrurrber: ,ZC~7-~a~' API Number: Sa ozq- Z33~//-0o Permit Approval Dat$: See cover letter far other regWretrrts. Conddions of approval ; If tax is checked, well may not be used to explore for, test, ar produce combed methane, gas hydrates, or gas Contained in shal~:Q~ Other: Samples req'd: Yes[Y No® Mud lag req'd: Ye~ N HzS measures; Ye No^ Directional svy~req°d; Yes^ N YS`~ r~\u:. ~~ ~6~~ ~S ~(K ~,^ar'ia.t o.c re~atresl , ~ /. t8•o~ APPROV BY THE COMMISSION DATE; ~"~ ~ ` D , CtJMMiSSiQNER Form it)-401 Revised 12!2005 Subrpit in Duplicate ~~fG~~AL ~~ ,.,e_n, i~r~, Subject: RE: Rock Flour #3--again From: Bill Penrose <bill@fairweather.com> Date: Fri, 19 Jan 2007 08:45:04 -0900 To: Thomas Maunder <tom_maiznder@adminstate.ak.us> CC: Steve Davies <Steve_davies@,admin.state.akus> Tom and Steve, As promised, here are the logging programs for Rock Flour #3 and Maggiore #1. They're the same except for the TD's. "^- Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 -----Original Message----- From: Thomas Maunder [ma-_tCttOi".i i!i:=.U"_L1e ~''t?adm_;;.Htdt-".. ali .:::'.] Sent: Friday, January 19, 2007 8:08 AM To: Bill Penrose Cc: Steve Davies Subject: Re: Rock Flour #3--again ~~~1 V ~® ,SAN 1 9 2007 Alaska Oi! & Gas Cons. Commission ~,nCl~0ta6~B Sorry Bill, but I forgot to mention about the updated logging program we discussed yesterday. Thanks. Thomas Maunder wrote, On 1/19/2007 8:05 AM: Bill, A couple of items as we review the application. 1. The 9-5/8" casing depth on the 401 sheet is given as 3950'. Should this be 2000' as in the text? 2. On the abnormal pressure evaluation, the investigative/proposed depth given is 3400' sstvd which is -550' shallower than the proposed td. Could you reconcile these two items. Thanks, Tom Maunder, PE AOGCC Content-Description: RF #3 Logging Program.doc RF #3 Logging Program.doc Content-Type: application/msword Content-Encoding: base64 Content-Description: Maggiore #1 Logo ng Program.doc Maggiore #1 Logging Program.doc Content-Type: application/msword Content-Encoding: base64 i ~~ --{~~5 5~ ~~ ~~ 1201 Louisiana St Suite 3500 Houston, Texas 77002 • U.S.A. Phone (713) 393 b100 Fax (7I3j 343 b395 ....._......... ~R9~ ~4./' Y ~~ January 17, 2407 Mr. John Norman, Chair Alaska Oit and Gas Conservation Commission 333 West 7~' Ave., Suite 104 Anchorage, Alaska 99501 RE: Application for Permit to Drill: Rock Flour #3 Dear Mr. Norman, Alaska Oil ~ Oas Oars. Carnmission Anchorage Eni Petroleum hereby applies far a Permit to Drill an onshore oil exploration well south of the Kuparuk River Field on the North Slope. Eni plans to use Nabors Rig #27-E to drill, core and evaluate a vertical hole to 3,954', then permanently plug and abandon the well. Rock Flour #3 will be drilled from an ice pad situated about half way along a 23-mile long ice road from which additional wells will be drilled and evaluated.. Waste drilling fluids and ground cuttings will be disposed of via the Pad 4 grind and inject facility operated by BP in the Prudhoe Bay Field. Please find attached information as required by 20 AAC 25.445 (a) and (c) for your review.. Pertinent information. attached to this application includes the following. 1) Form 10-401 Application for Permit. to Drill 2) Fee of $100.00 payable to the State of Alaska 3) A plat showing the surface location of the well 4) Diagrams and descriptions of the BOP equipment to be used 5) Proposed casing program b) Proposed cementing program. 7) Proposed drilling fluid program 8) Proposed drilling program 9) Shallow Hazards Evaluation 14) Abnormal Formation Pressure Evaluation 11) Schematic of the proposed wellbore and completion 12) Eni does not anticipate the presence of H2S in the formation to be encountered in this well. However, H2S monitoring equipment will be ~° functioning on the rig at all times during drilling and completion operations. • Mr. John Norman Page 2 13) The following are Eni's designated contacts for reporting responsibilities to the Commission: 1) completion Report Bill Penrose, Drilling Engineer ~ZO ~c zs.a~o) X907) zs$-~~~ 2) Geologic Data and Logs Charles Russell, Subsurface Manager tza Aac zs.o71) (713) ~~~-6zsl Tf you have any questions ar require additional information, please contact me at (713) 393-6122 or Bill Penrose at (9a7) 2s$-3446. Sincerely, ENT PETRQLEUM ... ,_ _ ~ ~~ d T ,.., - -... ~. _. _ David Dougall HSE Manager enclosures cc: Matteo Rivetti - Eni Bill Penrose -Fairweather • ~ RocN Flour #3 Proposed Well Design wjp 11/10/06 N ~~ey SJQ~ ~~a 00 o~• c~ p0 e~~ Gv~`~~y~ Notes: 1. Ice pad is 6" thick except under ~ rig components and in cuttings berm ~~ where it is 12" thick. 2. Ice road is 6" thick and 32' wide. 3. Pad is oriented such that prevailing winds keep rig and well emissions away from living quarters. All project ice pads to share this orientation. Pad Layout Eni Project No. Checked By: 8/01 /2006 Sheet No. File' Ice Road wM ~ r '~: ~~ k r "~r a"'~ '~' r +6 ~* wi~w ~ t:, ti ~~ ~,~ ra`# EN ~~ . ° ~~s µ ~, mss, w . P w,. °*w tl^ t amm , "' ~ _ p n ~ .~" w w a xv - ~ ~yyp~' M ~ '+ y wr ~ uy~_ ~ *~,Y~ y"" 4, ~ °~ W 4A ~ ~ ~ jJ~~n p~ ~w•~`.'~tfr l ~ '~~ µ ~~ • ~' ~I~ i 5 '%"' ~~ # a '"M ~`i" I ~" ~ ~ ~ ~ ~' " ` ~ '~:~ ~ ~ . ;~' ,~ ~1 ~,~. , a~~~w ~m 1 "~ 1 ~ wN w ~ ~~ 9 I~ ,'~ , ~ •. ~~ ~ ~ m ~ ~ ~ ~ ~e. ~p 1 • a ~' ~ ~~ y / ~ '~ v y # 'E ar ~ ~ 115, ~~., f~.• `~ }~!ti IG. 4~' o e, u ~f y tl ~ ~" r~ ... " e i.' m~~ ~ n ~. w r v y ~ ~' +r« . "~ r . ,~ .~ ~~ ~ ..L r ~y `3 e ~ ~ '`~ e~. r ~4 . ~ R, ..~ ~ . •~, r RockjFlour;#3 r .~ ~. '_~~ " ' p ' . jam, '~ r~i• °Lz r1~p{~1yy'{g~ e' ='' _ . ~ ~ •. y~ . ~ r 'z ~ ~ ~~~ ~. its l .r ~ " , s t ,t ~) , ~~~ ' .° y Y Y Y. t ~` r Rock Flour #3 ~~~ ~ ~ ~ ~" ` '`R •' + ~ _~ ~ ~ i'- Latitude - 70 11' 30.31" -, ~ P ~ "~ ,.~' '~ i.,; Longitude - 149 23' 37.71" i. ~ s ~ WGS 1927 ~ ;~ ~ , °. , y, ~ ,.u~...tr~ - .` , 2552 FSL, 1811 FEL, T10N, R11 E, Sec 29, UM E , r.: _ ;"~ ~ ;q"~~ .~ ~ -~°~ ~ ,. ~ •~~~~~ •~ , " . " ., ~ ~ o , _ ~ l~ ~ i ~ ~ , ~ u . , +~ ~ ~~, o •, ° r ~ 4 :~~ ~ y~ Legend Satellite Photo from August 3, 1999 rr n'II~IIrr Landsat-7 1.1. UIII~~j111~1. * wa„,o~,,,o~, PanSharpened to 15m pixels Rock Flour Prospect I I I WWW II I Projection: UTM Nad83 Zone6 p "5$1Me°'roR°°° Full Scene Geotiff En9 ~~fl ~~~®b~LIIIlY11 ':-. t its J C ,~,.Y r. ~ • v .. Q '~ : ~+~, ~ f ~ t ~~ ~~ ~ `_ .- sf„' -~~~ . t ~ "' \\ ~.a, ~ ,~ a 7 , ~rfsp~net'~Road ~+ ~a~~ <'•+ ~ f ~ `- ~. ~ r~r ~r t t y'' ~ N" w~„ ~Z ~~ ~.~ rs-~~~ `~ ~~ 1~ r 5 "+~,nA ,~~I°~l)~ ~ ~~~r ~fi ~~'~ y~ yl~~- ~ ~ ~~'~~ -}~ g~~' l ~r,, "of`f`. rkY~ E'er ~~ ~ A'~a, ' ri 4 .~, '=Q- . ~ ~ i .,/ ~'} ,. R ~ \ ?. y''~ p{y~[ /~ t~~~~,y v'+^ ;i ~ . a. '~ 'i-~,~ ~ p ~ ti'~P1r.~ ~~''`t ~~ ~~f* ~ ~` i =~ ~ ~ }'~ ` °r:. 1 A 1 4 M ~ ®p h 5 ~ ~' • ~t'~ n,, ~, . w ~ f ~ ~ ~4. u ~ S P. ~ f :. ~ `- r a 1 ~ ~ h ~ 4 .e ~ J 4 y ,71 u -~4~ °.. fry. ~ ~ ~1 ~ .~; ~.,,' ~ ~~«~{a /~ ~ ~~ ~'~ ~ t > P 111 / ~5~~ b ~ ~, r n,: , ~ ;~ ~ F ' - ~ y '~. ~_ ~ ~- ''. '~~# c 'r- ~ ~'~' .~~. ~ ~ ~ „~ ~ "~'6 '~j ~ T "~,~p "~ l L t~~ ~ ` t L c ~ .~t "*., i1 ~: ~. c~ t ^, p , ~y ~ c'+ ~ f b , F 5 L r u~m. .~ ` ^. tR ~~ F tV .. } r ~, ~~ , ~ ,:~~ °2; x f r y ~ .r~ .. ~ ~ ,: ~ ~` ~.' r. ~ ~: p F ,! ;% .. "t~ 11' .'fit } `.T ~ 1 .it. i a ~ ~, ~~ ~ _ , ,. _, ~ ., _ , .: ` 3 ., - .- I s1, ~ Cr ' _. , ~n _~ -~, ,.~ ~ il/7 t ,1 . w~ .. .. • - w.~qµ _ }~ x p ),~I"", k » X54 ,~ s ~ ~ ~ ~ -. y-~. ~- ~~ ll r Y ~ \ ~ ~i t .~ ~ ~ ~~ ~ -~~ . G S'~ ~"a ' .~. ~ .ii ~ r;. - '~ ~',~,~ ~~. x ~~' ~,~ ~~ .: v ~.' \ \ `I ~,/iJ ~ Ivy. ,~` '~r`tr ` ~~. v,O L ~y `. ~ 1r P ,;: legend .,~.,,~~ v ~.,~ 'r" ~' • wvi va~wv~ vavsc ~pe~eam ism v~.eis r iIIr rM~aab,=o~es Rock Flour and ~~~~C~Itit~ . ~a~e oaP,~s °~° F~~~ s~.~e jean„ ~s,a,~ cea~ Maggiore Prospects v s v 1 0 1 2 3 Miles ~ s~.,d~,~ ~ Enl Petroleum • • ENI Petroleum Pressure Calculations, Drilling Area Risks and Waste Disposal Rock Flour #3 Maximum Antcciuated Surface Pressure: 8-1/2" Hole Section The maximum anticipated pressure (MASP) for the 8-1/2" hole section in this well will be the lesser of: a) the formation pore pressure (less a full gas column to the surface) at 3,950' TVD, or b) the fracture pressure at the 9-5/8" casing shoe at 2,000' TVD. Offsetting well information indicates that the pore pressure at TVD will be a maximum of ~ 9.0 ppg (0.468 psi/ft) EMW. The best formation strength data obtained in this area is a leak-off test (12.3 ppg or 0.640 psi/ft) conducted at 2,000' in the nearby Rock Flour #2. Calculations for (a) 8-1/2" hole section MASP (pore pressure) _ (3,950 ft) (0.468-0.11) = 1,414 psi Calculations for (b) MASP (fracture pressure) _ (2,000 ft) (0.640-0.11) =1,060 psi Thus MASP in the 8-1/2" open hole section is 1,060 psi and the 5,000 psi BOPE system to be used will be adequate. Well Proximity Risks: The closest wellbore to this one is the plugged and abandoned Rock Flour #1 located approximately 4 miles away so there is no anticipated interference expected between wellbores. Drilling Area Risks: The operator of the Rock Flour #1 well encountered gas and chloride influxes at 7,300' Rock Flour #3 will be drilled to only 3,950' TVD so will not encounter that problem. Nevertheless, the drilling crew will be kept aware that mud weight increases maybe needed. There is a remote possibility of encountering with gas hydrates, though none of the offset wells did. If hydrates occur in this well, they will be treated with control drilling, ~ increase of mud weight, cooling of the mud and addition of lecithin.. • • There is no anticipated risk of H2S in the area as indicated by the lack in any of the offsetting wells. However, as a precaution, the rig and mud logging units will have functioning H2S detectors. Disposal of Muds and Cuttings: All drill cuttings and waste drilling fluid will be disposed of in BP's grind and inject ~' facility at Prudhoe Bay. ENI Petroleum. Rock Flour #3 Casincl Properties and Design Verification Casing Performance Prpoerties Internal Collapse Tensile Strength Design Safety,Factor* Size Weight Grade Cnxn Yield Ressistance Joint Body TVD MD T B C (in) (Ib/ft) (psi) (psi) (1000 Ibs) (1000 Ibs) (ft RKB) (ft RKB) 9-5/8" 40# L-80 BTC-M 5750 3090 979 916 2000 2000 13 15.5 2.8 * Tensile design safety factore are calculated using pipe weight less buoyancy. Burst design safety factors are calculated at the surface using zero backup on the outside and MASP on the inside. Collapse design safety factors are calculated at the casing shoe using maximum expected mud weight to be used at the shoe depth on the outside and the entire cased hole evacuated except a gas gradient on the inside. Casing Setting Depth Rationale 9-5/8" 2000' MD/2000' TVD Surface Casing to stablize shallow formations, provide an anchor for the BOP stack and provide shoe strength in the event of kick ENI Petroleum Rock Flour #3 Drilling Procedure 1. Prior to moving in drilling rig, excavate and install cellar then drill and cement 13-3/8" conductor to 80' below ground level. 2. Move in and rig up Nabors Rig # 27-E. Install diverter on 13-3/8" conductor and function test. 3. Drill 12-1/4" hole to ±2,000' . ' 4. Run 9-5/8" 40#, L-80, BTC surface casing and cement to surface as per cementing program. 5. Install wellhead, land casing and N/U, SK WP BOPE and test to 3,500 psi. 6. M/iJ 8-1/2" drilling assembly, clean out to float collar and test 9-5/8" casing to 2,500 psi. Drill out float collar, cement, float shoe and 10' of new hole. Conduct leak-off test. POH. 7. M/i.J 8-1/2" drilling assembly. RIH. 8. Drill 8-1/2" vertical hole to 3,950'TD, cutting 30' and 60' full-hole cores in intervals of interest. 9. At TD, condition the hole and run open-hole logs. 10. At the conclusion of logging, set a tubing hanger in the wellhead with a back pressure valve installed. 11. N/D BOPE, N/U dry hole tree. Test tree to 5,000 psi. Release drilling rig. 12. After the rig has departed, the well will be plugged and abandoned per AOGCC regulations utilizing a coiled tubing unit. • • Subject: RE: Rock Flour #3--again From: Bill Penrose <bill(c"_~fairweather.com> Date: Fri, l 9 Tan ?007 08:45:04 -0900 7'0: Thomas ~~~launder atom maunder~a!admin.state.ak.us CC: ~tr~c I)a~irs °~=ste~~e ~la~ ies~~ci'a~min.staTe.ak.us== Tom and Steve, As promised, here are the logging programs for Rock Flour #3 and Maggiore #1. They're the same except for the TD's. Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 -----Original Message----- From: Thomas Maunder [mailto:tom maunder~admin.state.ak.us] Sent: Friday, January 19, 2007 8:08 AM To: Bill Penrose Cc: Steve Davies Subject: Re: Rock Flour #3--again Sorry Bill, but I forgot to mention about the updated logging program we discussed yesterday. Thanks. Thomas Maunder wrote, On 1/19/2007 8:05 AM: Bill, '; A couple of items as we review the application. 1. The 9-5/8" casing depth on the 401 sheet is given as 3950'. Should this be 2000' as in the text? 2. On the abnormal pressure evaluation, the investigative/proposed depth given is 3400' sstvd which is -550' shallower than the proposed td. Could you reconcile these two items. Thanks, Tom Maunder, PE AOGCC ', Content-Description: RF #3 Logging Program.doc' ', RF #3 Logging Program.doc Content-Type: application/msword ', Content-Encoding: base64 'Content-Description: Maggiore #1 Logging Program.doc Maggiore #1 Logging Program.doc' Content-Type: application/msword ', ' Content-Encoding: base64 I~GEI V ED JAN 1 9 2007 glaska Oil & Gas Cons. Commission Anchorage • • ENI Petroleum Inc. Rock Flour #3 LOGGING PROGRAM Formation Evaluation While Drilling: Contractor: Schlumberger Oilfield Service: FEWD tools: Casing /shoe: hole size: measurements: 13.375" 12.25" GR / Rt ~ 9.875" 8.5" GR/ Rt ~~~E~ JAN 1 9 2Q07 Alaska (~i! ~ Gas Cons. Commission /l~ct~ora~e tool: GR/ARC PWD GR /GVR to top of N sand At total depth make a mad pass over the entire open hole interval (for complete / continuous LWD log). Wireline Logging: Contractor: Baker Atlas Log interval: from total depth of 3,950' TVD to the 13.375" casing shoe at 2,000' MD / TVD. Hole Size: 8.5" ,(f~l 19.0 •~ Services: will be a Grand Slam (Spectral Gamma Ray/CN/ZDL/HDIL/XMAC), GR/ CBIL / HDIP, GR /MREX, RCI, sidewall cores and velocity survey (VSP). c f Run l : GSLAM (Spectral Gamma Ray/CN/ZDL/HDIL/XMA~~~g•g`'~~ Run 2: GR/ CBIL / HD /_ Run 3: GR / MREX ~~~~ ,aa 1. gyp. °' Run 4: RCI -Formation Pressures and Samples (see below) Run 5: VSP - (see below) Run 6: SWCs (50) Formation Pressures and Samples Tool: RCI Conveyance: Wireline Straddle Packer on PCL (Optional) Sample Tanks: 2mini-samplers (12 tanks) + 1 SPT II (2 tanks) Configuration: Standard tanks - 8 x 840 cc Single Phase -- 6 x 450 cc Formation Pressures: approximately 25 in the N, OA & OB sands Formation Samples: Standard Single Phase SPT II Na 2 1 1 Nb 2 1 OA 2 1 1 OB 2 1 • • VSP - Interval: 3,950' MD - 2,000' MD every 50' levels (39) 2,000' MD -100' MD every 100' levels (19) * AOGCC format CD ROM and hardcopies has to be sent directly to AOGCC Mud Logging Services: Contractor: Epoch Well Services (a Nabors Co.) Services: Reduced Service Log interval: From 20" casing shoe at 100' MD / TVD to TD @ 3,950' MD /TVD Services: Operating Service Operating Services Cutting Sampling Interval = 30' and every 10' in all ZOI 4 surface loggers with at least two senior alternately on duty ,, () All equipment and sensor required .~ S ~,.~~,,5 ~` -''rC Z /g.o7 Real-time data monitoring: The Mudlogging data will be displayed in real time through the BHI Riglink AOGCC copies have to be sent directly Geochemical Samples: Isotubes: Frequency 100' MD to 2000' MD 500' 2000' MD to 3,950' MD Total Depth 30' (Increase amount in ZOI and Shows) ~,~'~~~ Alaska Qil & Gas Cons. Commission Annhorage 13 5/e' 5000/ HYDPoL ANNUTAR BOP 4' J ]/9' 3~• _ -_-_-_-_-_-_-___-_._- R' 8 1/e' 3/e-~_ -_-_ __-_-_-__ __ _-_-_. ref/e' 3~• _ 3 5000/ GATE VALVE __ _____L 3' 5000/ HCR VALVE t' to e/B' fro. __ I . 2ZZyILL LINE 352 z' a 1/8' I CUSTOMER FURNISHED -21 1/4~ 2000/ HYDRIL BOP/DNERIER SURFACE DIVERTER PIPING CONFIGURATION PLAN VIEW GATE N.~uAtoR SURFACE DIVERTER CONFIGURATION BOLTED FLANGE SINGLE 13 5/e' 5000/ HYINtIL AIPL PIPE RAM BODED FIANGE SINGLE 13 5/B' 5000/ HYDRIL MPL BLIND RAN ~BOLTED FUWGE 4' 5000/ HCR VALVE - \ I, - 4' CHOKE LINE 4' SOW{ GATE VALVE ~ BOLTm f1ANGE SINGLE 13 5/B' SWO/ HYORIL NPL PIPE PAN BOLTED FLANGE ADAPTER SPOOL - HUB z FIANGE H:~ACADFILE\27E\BOP\27E0301C.DWG,12I07I01 01:02:51 PM BOP STACK ELEVATION 3' s • • • WELL SITE SURVEY SHALLOW DRILLING HAZARDS EVALUATION PROPOSED ROCK FLOUR #3 ALASKA STATE LEASE 389118 NORTH SLOPE, ALASKA Summary The available CDP geophysical, velocity, and proximal well data have been examined and evaluated for shallow to intermediate depth drilling hazards. Data from offset wells suggest that natural gas hydrates are likely to be encountered in sands and gravels of the Sagavanirktok Formation (800 to 2600' TVD). Our well plan is designed with this potential hazard in mind. Rock Flour #3 is a vertical well and the proposed surface hole location will be 2800' FNL & 1870' FEL of Section 29, Township 10 North by Range 11 East (x=1343443.719', y=25554009', NAD27, UTM Zone 6). Geology The proposed drill site is located in the coastal plain region. Throughout Quaternary and. possibly late Tertiary time sedimentation in this region has been dominated by the Colville River Delta. Superficial sediments include coarse sand, gravel, and boulder lag deposits of Quaternary age. The underlying Pleistocene section, the Gubik Formation, consists of channelized marine and nonmarine muds, sands, gravels, and low grade coals. Locally the entire Quaternary sequence is less than 900'thick. Underlying the Gubik Formation is the Sagavanirktok Formation, which ranges in age from Upper Cretaceous through Tertiary. The Sagavanirktok Formation consists of complexly interbedded marine and nonmarine shelf and delta plain deposits composed of unconsolidated sand, shale, and conglomerate. Locally the Sagavanirktok Formation is approximately 2,000' thick and gently dips to the northeast at 1 ° to 2°. The Colville Group lies conformably below the Sagavanirktok Formation. Deposition of the Colville Group spans the interval of time between the Late Cretaceous through Lower Tertiary . This group is comprised of three formations in the prospect area. From youngest to oldest they are the Ugnu Formation, Schrader Bluff Formation, and the Colville Mudstone. The N and OA sandstone of the Schrader Bluff Formation are the targets of this well. The Schrader Bluff Formation contains significant reserves of viscous oil in the Milne, Orion, Polaris and West Sak fields. Oil was also found in surrounding wells. • • Geophysics The Kuparuk 1995 3D survey, acquired and processed by Western Geophysical Company, and the wells in the drill site surrounding area were analyzed for potential shallow and intermediate depth drilling hazards (see enclosed seismic/well base map). Illustrated inline and crossline (both intersect the Rock Flour #3) are enclosed for your reference. Rock Flour #3 interval velocity/pressure profile was constructed by integrating all available offset logs, subsurface pressures and seismic data and is attached for reference. Potential Shallow Drilling Hazards Permafrost The permafrost thickness is characterized by high-resistivity and high-velocity logs and it is easily recognized in the wells. In the onshore seismic the base of the permafrost is not associated with a unique strong reflector (like the Bottom Simulator Reflector in the offshore seismic) and it is not easily interpretable. The analyzed wells show a progressive deepening of the base of the permafrost in a north-east direction. USES well data support this regional trend. Taking into account all the available wells in the ENI acreages the base of the permafrost is comprised between 1400 and 1800 ft (TVDSS). We expect the base of the permafrost in Rock Flour #3 at around 1500 ft (TVDSS). Shallow Gas/Oil Accumulations There is no geophysical evidence for significant accumulation of shallow gas beneath the Rock Flour #3 location. No amplitude anomalies, velocity sag or frequency attenuation indicators are present from 3-D seismic covering the location. '` As reported in literature, there is some chance of penetrating natural gas in the sands of the Sagavanirktok Formation. The enclosed map shows the regional extension of the gas hydrates and the free gas. Rock Flour #1 mudlogs detected gas show between 2550 and 2750 ft (TVDSS), Hemi Springs State between 2750 and 2900 ft. These stratigraphic intervals are not associated to relevant seismic gas indicators. Minor elevated background gas levels within and below the permafrost interval are being planned for in the proposed Rock Flour #2 well. ~' The previously referenced vertical pressure profile, which incorporates all pertinent engineering, geological and geophysical data, served as the basis for design and development of all operational and safety plans for the Rock Flour #3 well. Summary We have not identified from seismic or offset well data any conditions beneath the Rock Flour #3 location which could pose a prohibitive shallow or intermediate depth drilling hazard to the planned drilling operations. Natural gas hydrates are likely in the sands and gravels of the Sagavanirktok Formation (800 to 2600 ft TVDSS) and the drilling plan has been adjusted accordingly. A copy of all pertinent data to shallow geological and drilling safety conditions has been supplied to operations and engineering personnel in the preparation of the Rock Flour #3 well design and operational plan. • • WELL SITE SURVEY ABNORMAL FORMATION PRESSURE EVALUATION ROCK FLOUR 3 LOCATION ALASKA STATE LEASE 389118 NORTH SLOPE, ALASKA The available geophysical data and proximal offset well data to the Rock Flour #3 (be 2800' FNL & 1870' FEL of Section 29, Township 10 North by Range 11 East (x=1343443.719', y=25554009', NAD27, UTM Zone 6) have been examined and evaluated for potentially overpressured strata. Examination and evaluation of these data suggest that formation pore pressure increases at a normal gradient with depth and abnormal pressure is not anticipated to the proposed total depth of 3400 ft SSTVD. A seismic/well base map highlighting the area of 3-D coverage, 2D coverage, key seismic transect, key offset wells and the Rock Flour #3 well location is included for reference. Also included is a pressure versus depth plot generated for the Rock Flour #3 well from available geologic, petrophysical, engineering and geophysical information. The plot depicts increasing formation pressure along the "x" axis versus true vertical depth on the "y" axis. Examination of all velocity, density and MW data from the offset wells show a general increase of internal velocity and pressure with depth to the limit of penetrated formation below 3800' within the area. Based on our analysis of the formations to be penetrated by the Rock Flour #3, no overpressure is anticipated above the proposed total depth of 3400' SSTVD. ____ This overpressure evaluation is supported by all available geophysical and petrophysical ~' data. Those wells considered key offset for well planning purposes are highlighted on the aforementioned seismic/well base map. The total depth of these wells ranged from to 5900' to 10930' TVD. Rock Flour #1 and Hemi Spring State has been analyzed to define the compaction trend of the area. Rock Flour #1 reached a TVD of 9354' (11.2 ppm MW) while Hemi Spring State was drilled to 10931' TVD (10.0 ppg mw). Both these wells exhibit normal compactions trends (see attached depth vs pressure chart). As it is general practice to drill slightly overbalanced, in situ pore pressures are likely less than the observed mud weights. In summary, abnormal formation pressure is not anticipated beneath the proposed Rock Flour #3 well location. All operations and engineering personnel have been advised of the anticipated geological drilling conditions. • • • • • ~- O rt+ O UU (Yp ~V ry y a Q i ~ o N O a:..~.} t~ ~. N Q. N N ~ •+ ~ N w f+ Q O d ~ N O Q. ~ i`1 ,~. M/ W W O ~, f f B~. P {I~~ u~ Q ~Q ~F i p O C p cC r G ~ O t`I Z , ~ d O . ~ M Q w+ W y C ~ N N N m C O O ~. i; fl. N C. N Z ~ M/ W 0 P Rock Flour Area Sonic Velocity 0.00 5000.00 10000.00 15000.00 20000.00 0 500 1000 1500 2000 r 2500 D 3000 3500 4000 4500 5000 25000.00 =~~-_- - ^ r--- -- - =_ Hemi Sping Hemi Spring State Rock FLour West Sak Rl~,er State 6 ----~.~ c -~ y ---~ ~~ • RF1 &Hemisprings Pressure Data 0 --~ RF1 MW f RF1 PP 2000 ~ Hemisprings MW -~- Hemisprings PP ~ Colville High Regional Data 4000 +• y-- G ~ 6000 t o. 8000 10000 12000 ~ 6.0 7.0 8.0 9.0 Pressure data ppg 10.0 11.0 12.0 ~ ~ Rock Flo ur #3 DRILLING FLUIDS PROPOSAL ~ C~n~i~ ° ° t~rOll~~u~~nn ~imii Rock Flour #3 Exploration Well ~'_--~;. ;~~ ---- Name Signature Date Originator: Hal Martens Reviewed by: Chris Wallace Customer Approval: Bill Penrose Version: 1.3 Date: December 29, 2006 Location North Slope Alaska Confidential Date: December 29, 2006 • • Rock Flour #3 VIII I ~rntar y The Rock Flour #3 exploration well is to be drilled as a "grassroots" non-deviated evaluation well. Production zone target is to be a West Sak /Schrader Bluff equivalent sand. Planned pore pressures of 8.6 - 9.5 EMW are to be expected. Generalized Geology and Formation Tops (Typical or Area) _NERALIZED GEOLOGICAL FORECAST GEOLOGICAL FM LITH DESCRIPTION ' Permafrost:Conglomerate _ Unconsolidated fine to very coarse ~ ~ ~ gravel to 600' MD E ,. a :::. Hy rt5 1,1 ' Predominantly clay from 600 - ' 1,950' TVD Coal seam at 1,400' TVD Base permafrost 1 ,700'SS Continued interbeds of sand, U G N U clays and siltstones with occasional shows of coal Sparadic shows of hydrocarbon are found within the UGNU Top of W est Sak D D & B West Sak sands Upper West Sak & West Sak D & B are B hydrocarbon bearing I W est Sak Sands I A se of the West Sak Location North Slope Alaska Confidential Date: December 29, 2006 • ~~ ____- Rock Flour #3 Fluid and Drilling Concerns - Hole stability throughout the drilling, evaluation, and casing/liner running phases of the operation. - Hole cleaning and wellbore conditions throughout drilling operations. - Fluid and wellbore quality for the testing portion of the program. - Minimization and control of waste management cost for the "drill cuttings" and associated fluids. Monitoring and efficient utilization of the trucks that are required for this operation. Daily and interval summaries will be tallied and summarized for the end of well report. Location North Slope Alaska Confidential Date: December 29, 2006 e • Rock Flour #3 Project Summary Casing Hole Measured Mud Size Size. Depth TVD Mud Weight in (in) Profile (ft) (ft S stem 13.375 n/a ,~~ ~~ ~~~ _ 100 100 n/a n/a 9.625 I 12 /25 n/a I 8.5 2,000 ~ 2,000 ~ Spud ~ 8.6 - 9.5 ~ 3,950 ~ 3,950 ~ FLOPRO ~ 9.4 - 9.5 Location North Slope Alaska Confidential Date: December 29, 2006 • • Rock Flour #3 Surface Interval Drilling Fluid System Spud Mud Key Products Gel, Caustic, Gelex, Pac Supreme, Duovis, Soda Ash, Bicarb, SCREEN KLEEN, DrillZone Solids Control Shakers, Mud Cleaner, Centrifuge Potential Problems Running gravel, unconsolidated sand, clay Losses or wallcake build u in the U nu INTERVAL MUD PROPERTIES Depth MD (ft) Mud Wt. (ppg) Funnel Viscosity Yield Point (IbM00ft2) API Fluid Loss (ml/30min) Chlorides (mg/I) pH 110 -1,600 8.6 - 9.2 250 35 - 45 nc - 6 <600 9.0 - 9.5 1,600 -2,000 9.2 - 9.5 150 - 200 30 - 35 4 - 6 <600 9.0 - 9.5 Surface Interval Fluid Formulation Product Name Quantit Unit Size MI Gel 20 - 25 b Soda Ash 0.25 b to the makeu water Caustic Soda for Hof 9.5 Pac Su reme 0.25 b or as needed Gelex as needed for viscosit SCREEN KLEEN 1 - 2% while drillin o tional DrillZone 1 - 2% while drillin o tional) Note: Makeup water and water used in the pits while drilling should be as cold as possible. Location North Slope Alaska Confidential Date: December 29, 2006 • • ' ---_,~~ Rock Flour #3 Recommended Solids Control Equipment Shakers- • LO/TO Shakers • Replace all decking rubber on the ALSII or equivalent shaker beds. This will allow for optimum screen performance during drilling operations. It is important to develop a good preventive maintenance schedule which includes replacing the decking rubber before it becomes a performance related issue. • Install XR Magnum screens (84-110 mesh). Ensure screens are properly tensioned, per M-I Swaco's best practice suggestions. Spray down new screens with fresh water before operating the shakers. • Set counterweights to 95% (8 G's) for optimum performance. • As fluid shears, screen up as necessary to higher mesh screen sizes. • Ensure jacking system on ALSII shakers enables the fluid to flow to the center of the screens, adjust and lock as necessary. De-Silter- • Ensure cuttings trough bypasses shakers, and goes into cuttings ditch. Failure to do so will allow small particles to enter right back into system through the flow line shakers (84-110 mesh screens). • Verify that'/z" apexes are installed on all clones. 'h" apexes will not make as fine of cut as 3/8" apexes, but due to the fact there is no De-Sander, larger particles will pack off the 3/8" apexes and result in poor performance. • Ensure that Ft. of Head gauge is available at the De-Silter, not the pump. • Ensure that De-Silter feed pump can achieve 95' of head. CRITICAL! Changes can be made quickly to the impeller or speed of the pump to improve the head capabilities. • Ensure that sufficient spares are located at rig site. These spares would include enough Apexes to install 5/8",'/z", or 3/8" assemblies, depending on well formations, fluid rheology, and circulating rates. • Monitor discard, change apexes as necessary to improve solids content in mud (it may be determined that 3/8" apexes can be installed if cuttings in the system happen to be finer than presumed) Centrifuge- • Surface intervals require a greater through put during most operations, which require the centrifuge to run at a lower speed (2,500 rpm). This setting allows the centrifuge to process more fluid, discharge more cuttings, and ultimately put a bigger pile of dirt on the ground at the end of the day. The only draw back of the lower rpm's, is the cut point is reduce from 3-6 micron cut, to approximately 6-10 micron. Swaco recommends and stands behind the suggestion to run the centrifuge at the lower speeds during the upper sections of hole. Location North Slope Alaska Confidential Date: December 29, 2006 • • ~ _ _ --_.. Rock Flour #3 Surface Interval Overview Surface to 2,000' MD Lithology through this zone is a composite of small gravel in the upper intervals with a grading downward to sand, clay, and some siltstone in the lower zones of this interval. Based upon work done on previous wells a modified M-I Gel/Gelex spud mud is recommended for the surface interval. Initial viscosities of 150 - 200 sec/qt should be used through the permafrost, which extends to a depth of 1,600' TVD. Expected pore pressures at the base of this interval are expected to be at 8.3 - 9.1 ppg EMW. 9.625" surface casing will be set and the cement will be pumped in a single stage to surface to complete this interval. Surface Interval Drilling Concerns: - Large gravel sizes can cause hole-cleaning problems. If larger than normal gravel is encountered be prepared to increase funnel viscosity to 250 sec/qt. Have GELEX available for an immediate response to this issue. - Care should be taken in the event that an unexpected hydrate encounter occurs. If the hydrate issue is deemed to be a major problem, use the following guidelines to help minimize the effect that any hydrates may have to the drilling operation. - Sticky clays in the permafrost and also in the zone below the permafrost can slow ROP from bit and BHA balling. If needed add SCREEN KLEEN (at 1 - 2%) and Nut Plug m (as allowed by MWD tools) to minimize clay to metal sticking. Additions of DrillZone used in conjunction with the SCREEN KLEEN will help with shaker screen blinding and will also enhance the effect of the SCREEN KLEEN. Consider pretreating the system with the SCREEN KLEEN and DrillZone with 1 % v/v of each. - Swabbing in the clays may also be a problem. Maintain or slightly increase mud weight (.1 ppg) and continue additions of SCREEN KLEEN at 15 to 30 gallons per hour and wiper runs through these intervals may be necessary to clear the wellbore of the problem clays. - To help insure good cement to surface after running the casing, condition mud to a funnel viscosity of +/_ 55 - 65 sec/qt (YP of 12 - 15) prior to cementing the casing. Have SAPP, Desco CF and water on hand to ensure the desired rheologies can be achieved. Use water sparingly to reduce the over all haul-off costs for this well. Location North Slope Alaska Confidential Date: December 29, 2006 • • -_~ Rock Flour #3 Surface Interval Operations Surface Interval Operations Recommendations: 1. Spud mud will be mixed on the rig or delivered from the MI mud plant in Deadhorse once the rig is spotted over the well. The mud should include 0.2 ppb Soda Ash and 25 ppb M-I Gel and should also be allowed to hydrate as long as is possible prior to drilling. 2. Just prior to spud, add Gelex, as needed, to raise viscosity to +/_250 sec/qt. Maintain viscosity as required using M-I Gel/Gelex to clean the hole. 3. Viscosities should be adjusted to 250 sec/qt through the Permafrost and may then be lowered to 150 sec/qt as hole conditions allow. 4. Drill ahead maintaining volume with additions of cold water, M-I Gel and Gelex as needed. 5. Keep the spud mud as cold as possible to minimize melting in the permafrost found in this zone. 6. Run all solids control equipment as per the enclosed "Solids Control Equipment" recommendations. Add drill water below shaker to avoid washing unwanted solids back into the active system. Watch for "excessively wet" cuttings and change screens to a larger mesh should this occur. Minimization of "excessively wet" cuttings sent to Grind and Inject for disposal is a major cost reduction factor. 7. Lower API fluid loss with PAC PLUS UL as needed to maintain hole stability. 8. To control rheology additions of Desco CF may be needed. 9. Add SCREEN KEEN (at 1 - 2%), DrillZone (at 1 - 2%), and Nut Plug m (at 15 ppb) to reduce bit balling in the clay sections if needed. 10. Prior to drilling into the Ugnu formation add 3 - 4 ppb MIX II to the system to help seal this porous interval. DrillZone additions will help with shaker screen blinding which may occur while drilling in the Ugnu formation. 11. Prior to cementing the surface casing and if hole conditions allow, let the funnel viscosity drop to +/_55 - 65 sec/qt. Allow surface mud volumes to fall during the later stage of drilling to minimize waste fluid disposal costs. 12. Upon drill-out of the surface casing shoe, treat any cement returns with SAPP, Bicarb, Desco CF, and PH-6 as needed. Location North Slope Alaska Confidential Date: December 29, 2006 ~ - -__ __~ Rock Flour #3 Production Drilling Interval Drilling Fluid System FLOPRO NT Drill-in Fluid Key Products KCI, FloVis, DualFlo, Greencide, Lubetex, Klagard, CaCOa, Solids Control Shakers, Mud cleaner, Centrifuge, and Magnets Potential Problems Lithologic instability near the wellbore. Torque and drag. Hole cleanin . PRODUCTION INTERVAL MUD PROPERTIES Depth MD (ft) Mud Wt. (ppg) Plastic Viscosity (cp) Yield Point (Ib/100ft2) API Fluid Loss (ml/30min) Chlorides (mg/l) pH 2,000 - 3,950 9.5 10 28 - 30 4 - 6 28,000 - 31,000 9.0 - 9.5 Production Interval Fluid Formulation (for new 9.5 ppg coring type fluid) Product Name Amount Unit Size Water .87 bbl Biocide 0.2 ppb Pac Plus UL 1.75 ppb Duovis .75 -1.25 ppb DuALFLO 7 - 8 ppb Soda Ash 0.5 ppb KCI (6%) 21.8 ppb S-200 (CaCOs for bridging) 49 ppb Klagard (2%) 6 ppb Caustic Potash 0.05 ppb The pH target for this fluid during coring is 7.5 to 8.5. High pH should normally be avoided across the target zone because it can mobilize migratable fines through silica dissolution, change wettablilities and encourage blocking emulsions. Location North Slope Alaska Confidential Date: December 29, 2006 • Rock Flour #3 Recommended Solids Control Equipment Shakers- • Inspect decking rubbers, c/o as necessary. • Install XR Magnum screens (175-210 mesh). Ensure screens are properly tensioned, per M-I Swaco's best practice suggestions. Spray down new screens with fresh water before operating the shakers. • Set counterweights to 90% (7.8 G's) for optimum performance. • As fluid shears, screen up as necessary to higher mesh screen sizes. 210 mesh is optimum to reduce sand sized particles. • Ensure jacking system on ALSII or equivalent shakers enables the fluid to flow to the center of the screens, adjust and lock as necessary. De-Silter- • Ensure cuttings trough bypasses shakers, and goes into cuttings ditch. Failure to do so will allow small particles to enter right back into system through the flow line shakers (84-110 mesh screens). • Install 3/8" Apexes. • Ensure that Ft. of head gauge is available at the De-Silter, not the pump. • Ensure that De-Silter feed pump can achieve 95' of head. CRITICAL! • Monitor discard, change apexes as necessary to improve solids content in mud (it may be determined that 3/8" apexes can be installed if cuttings in the system happen to be finer than presumed) • Discard should be 2-3 PPG over feed weight. Centrifuge- Production intervals generally call fora "high-speed" centrifuge, which is rotating at approximately 3200 rpm's. This allows the centrifuge to make the 3-6 micron cut, and eliminate a percentage of the "ultra fine" cuttings from the fluid. Through put must be decreased while running the centrifuge at 3200 rpm's, since there is a greater risk of "packing off" the centrifuge back drive and auger. Swaco would also suggest installation of amp meter on the back drive motor which will allow the operators to monitor the feed rates by knowing how much torque the back drive motor is receiving while trying to discharge the cuttings. Refer to mud man for solids information to determine speed and feed rate of centrifuge. Continual processing at low feed rates will yield better results than shutting centrifuge down and starting it up. Slow feed rate down to maintain an acceptable weight if needed. Location North Slope Alaska Confidential Date: December 29, 2006 • • Rock Flour #3 Production Interval Objective The production interval will be drilled to a TD of 3,950' MD. Formation evaluation testing will be performed as per the program and will include sidewall cores, MDT, and E-logs. Production Interval Treatment Considerations - Lithology for this interval is expected to be typical of this region consisting of sand and siltstones that are commonly found on West Sak/Schrader Bluff intermediate/production intervals. - Ensure that the fluid properties are maintained to provide the best possible hole conditions for the testing that will be performed on this interval. Maintain mud weights at 9.4 - 9.5 ppg and ensure that rheology is optimized. Monitor for any fluid losses and flow back closely. - Due to the short interval length, a dilution program to help minimize formation damage will not be needed. Klagard additions will be made to control the drill solids at <5% or an MBT of 5 ppb. It is important to maintain the drill solids content below 5% to reduce the possibility of any formation damage or interference with the MDT and sidewall core sampling that is programmed for this interval. - Although lubricants are not expected to be needed for this well, NO lubricants should be added to this fluid without careful consideration. Lubricants can adversely affect the results of the MDT and sidewall cores. - Fluid deliveries, fluid transfers; and cuttings disposal issues will be tracked on a daily basis. - Record product usage and effectiveness of any sweeps that are pumped. Location North Slope Alaska Confidential Date: December 29, 2006 • • --- Rock Flour #3 Production Interval Operations: 1. Change over to FLO-PRO NT Drill-in Fluid as per recommended guidelines - "Mud to FLO-PRO NT Displacement Recommendations" enclosure. 2. Maintain flow rates at or above 400 gpm (450 - 500 gpm preferred) to insure hole cleaning. Reduce pump rates immediately if packing off occurs. Pump high viscosity weighted sweeps and ream carefully to clean the hole before proceeding with further drilling. High Viscosity Sweep Formula 25 bbls of FLO-PRO NT Drill-in Fluid FloVis - 0.5 - 1 ppb (allow to shear for LSRV @ 60,000 - 80,000) Super Sweep - 0.15 ppb 3. Drill ahead. Adjust rheology, pipe rotation speed, pipe running speeds and pump rates as needed to balance hole cleaning and ECD. 4. Drill ahead watching for wellbore instability problems. 5. Although not expected to be needed, as with any exploration well, the well will need to be monitored. Use mud logging information as a tool to determine wellbore conditions. If fluid weights need to be increased the weight adjustments should be performed in 0.1 ppg increments using Sodium Chloride to 9.8 ppg for the brine fraction. This will allow a weight up to 10.3 ppg using 0.5 ppg equivalent for CaC03 addition. 6. Add S-200 (CaC03) to insure that the 45 - 49 ppb ratio is maintained while drilling. 7. Monitor and record drilling parameters on each connection. 8. Upon reaching TD watch the bottoms-up cuttings closely. Circulate for 2 - 3 bottoms up. If the well does not readily cleanup or if there are any excess of torque, drag, pick-up or slack-off weights pump a high viscosity weighted sweep and observe bottoms up again. 9. Complete or abandon the well as per program. Location North Slope Alaska Confidential Date: December 29, 2006 • • Rock Flour #3 Virtual Hydraulics Model M~ SWACQ ©1995-2005 M-I L.L.C. 'Mark d M~I LL C. -VIRTUAL HYDRAULICS' Sna Shot' Depth Geometry Mgle (ft) MD/TVD Csg OD/ID (°) b" dP Density (Ib/gal) MD: 3950 M ~'. Operator: Eni TVD: 3950 h Well Name: Rock Flour tl3 Bit Size: 8.5 in ~ Location: North Slope Date: 11/2Y2006 Country: US Va Hole Clean Pressure Distribution (ft/min) Index (%) Bit -40.8 Ann = 25.9 DS = 33.2 Drilling Fluid --- -. FLOPRO NT ~~MUd Weight 9.5 Ib/9al Test Temp 120 °F System Data w Rate 450 gal/min letration Rate 100 IVhr ary Speed 80 rpm fight on Bit 10 7000 Ib Noules 0.95 ins Pressure Losses Modified Power Law Drill String 162 psi MWD 343 psi Motor 267 psi Bit 198 psi Bit On/Off 100 psi Annulus 726 psi Surface Equip 19 psi U-Tube Effect 26 psi Total System 1243 psi ESD ECD +Cut Caq Shoe 9.62 10.12 10.25 TD 9.63 10.24 10.37 VHDH-Vwtlon ].0 Rla ~ Ela - 1.MDa Location North Slope Alaska Confidential Date: December 29, 2006 I = ECD PV (cP) • • Rock Flour #3 M~ SWACQ 01995-2005 M-I LLA. 6" tlp MD: 3950 R Operator: Eni 'man of Ma LLC. TVD: 3950 R Well Name: Rock Flour e3 VIRTUAL HYDRAULICS' VRDH' 91t S1ze: B6 In Date: 712/2006 Location: North Slope Country: US Hole Cleaning 1.C O.i Hole o.~ a: NOTE: In all cases where the flow rate is less than drill rate exceeds 125 fph extra precautions should be made to keep the wellbore clean. 1. Extra time spent should be spent on circulation prior to connections and trips. 2. Adjust rheology if possible to help with hole cleaning. 3. Weighted high viscosity sweeps may help. 4. Maximized rpm while drilling and circulating will generally aid with hole cleaning. 5. Monitor PWD data closely. 6. Observe and chart pickup and slack off weights during each connection. Location North Slope Alaska Confidential Date: December 29, 2006 `200 300 400 500 600 700 Flow Rate (gal/min) • n _ _ __--~. Rock Flour #3 Hydrate Issues Care should be taken in the event that an unexpected hydrate encounter occurs. If the hydrate issue is deemed to be a major problem, use the following guidelines to help minimize the effect that any hydrates may have to the drilling operation. • Add 2.0 Ib/bbl Lecithin to the mud prior to drilling into the zone below the permafrost if necessary. Desco CF may be used to adjust rheology after the Lecithin additions are made. • Weigh the mud at both the possum belly and at the suction pit using pressurized and regular mud balances to determine the amount of gas that has become entrained in the mud. • Maintain the fluid temperature as low as possible (<60°F if possible). • Minimize circulation time and flow rate to reduce hydrate thawing. • Watch both drill rates and flow rates and make adjustments as needed to help diminish any problems that the surface equipment may have in handling the fluid and cuttings while circulating out any hydrates. • Weight up to 9.5 ppg or as needed prior to drilling out of the permafrost. Watch the rate of depletion of the hydrates and increase the weight as needed to control the gas breakout from the hydrates. Reduce flow rate and continue the drill through the hydrates to allow them to freeze back up as soon as possible. Spud Mud to FLO-PRO NT Displacement Recommendations: • Prior to drilling out the cement and shoe of the casing. Reserve 35 bbls of the surface mud in a pill pit and lower the remaining fluids YP to <75 using Desco CF. • Drill-out the remaining cement treating any Ca++ contamination with Bicarb, SAPP, and Desco CF while maintaining the YP at < 15. • Clean the rig pits and flush all surface lines prior to taking on the FLO-PRO NT Drill-in fluid delivered from the M-I Mud Plant. Have vacuum trucks ready to haul-off displaced fluid prior to beginning the displacement to FLO-PRO NT. • Thin the 35 bbls of reserved fluid to a YP of 6 - 9 with additions of Desco CF and SAPP to create a low viscosity spacer. Maintain the fluids weight at 9.4+ - 9.5 ppg. • Mix a high viscosity spacer consisting of: 0 35 bbls of 3% KCI/NaCI brine C~ 9.0 ppg 0 2 ~/z ppb FloVis to viscosity of LSRV of 80,000 -100,000 o Graded CaCO 3for weight up to 9.5+ ppg • Pump the 35 bbl low viscosity spacer followed by the 35 bbl high viscosity spacer. • Follow the spacers with the new FLO-PRO NT drill-in fluid. Rotating the drill pipe and pumping at rates above 250 gpm will help insure that the interfaces can perform properly during the displacement. • Monitor the shakers for the interfaces to return. Discard the spacers and any contaminated FLO-PRO NT drill-in fluid as needed to ensure the quality of the FLO-PRO NT system. • Once good fluid is back to surface clean the flowline and shaker areas as needed prior to drilling ahead. Location North Slope Alaska Confidential Date: December 29, 2006 • ' _. Rock Flour #3 Recommended LCM Pill for FLO-PRO NT The following lost circulation pill is recommended for use in the event that losses occur while drilling the horizontal production interval. It has been selected because of its' ability to seal with minimized formation damage. These products are predominately acid soluble which will make any stimulated cleanup (if needed) much easier. - To existing FLO-PRO NT circulating fluid make a LCM pill with: • 15 ppb Lowate (fine calcium carbonate) • 15 ppb Safe-Garb Medium (medium calcium carbonate) • 15 ppb Safe-Garb Coarse (course calcium carbonate) Insure particle sizes of bridging materials can pass through the down hole tools and motors prior to mixing and spotting. 1. Spot pill across thief zone, if losses stop, pull into casing and apply 200-psi squeeze pressure and watch for pressure bleed-off. If pressure holds for 15 minutes, resume drilling. If pressure does not hold, spot another pill as described above. 2. If losses cannot be stopped with calcium carbonate only, mix up a LCM pill with 25 ppb MIX II Fine and 15 ppb MIX II Course cellulosic material and spot as above. 3. If seepage losses occur after drilling is resumed, consideration should be given to adding 5 - 8 ppb MIX II Fine cellulosic material to system while circulating. Location North Slope Alaska Confidential Date: December 29, 2006 ' • ~ Schlumberger CemCADE Preliminary Job Design 9 5/8" Surface Casina, V1 on purposes Rig: Location: Exploration Client: ENI Exploration Revision Date: 11/28/2006 Prepared by: Mike Martin Location: Anchorage, AK Phone: (907) 263-4207 Mobile: (907) 748-6900 email: martinl3@slb.com < TOC at Surface Previous Csg. < 16", 65.# casing at 100' MD I < Base of Permafrost at 1,800' MD (1,800' ND) < Top of Tail at 1,800' MD < 9 5/8", 47.0# casing in 12 1 /4" OH TD at 2,000' MD (2,000' ND) Volume Calculations and Cement Systems Volumes are based on 250% excess in the permafrost and 50% excess below the permafrost. The top of the tail slurry is designed to be at 1,800' MD. Lead Slurry Minimum pump time: 200 min. (pump time plus 120 min.) ARCTICSET Lite G 10.7 ppg - 4.45 ft3/sk 0.7632 ft3/ft x (100') x 1.00 (no excess) = 76.3 ft3 0.3132 ft3/ft x (1800' - 100') x 3.50 (250% excess) = 1863.5 ft3 76.3 ft3 + 1863.5 ft3 = 1939.8 ft3 1939.8 ft3 / 4.45 ft3/sk = 435.9 sks Round up to 440 sks Have 240 sks of additional Lead on location for Top Out stage, if necessary. Tail Slurry Minimum pump time: 150 min. (pump time plus 120 min.) ARCTICSET I @ 15.7 ppg - 0.93 ft3/sk 0.3132 ft31ft x (2000' - 1800') x 1.50 (50% excess) = 94 ft3 0.4110 ft3/ft x 80' (Shoe Joint) = 32.9 ft3 94 ft3 + 32.9 ft3 = 126.9 ft3 126.9 ft3/ 0.93 ft3/sk = 136.5 sks Round up to 140 sks BHST = 35~, Estimated BHCT = 58~. (BHST calculated using a gradient of 2.6`F/100 ft. below the permafrost) PUMP SCHEDULE Pump Rate Stage Stage Time Cumulative Stage (bpm) Volume (min) Time (bbl) (mint Water 5.0 1.0.0 2.0 2.0 Pressure test lines 0.0 0.0 10.0 12.0 Water 5.0 30.0 6.0 18.0 Drop bottom plug 0.0 0.0 5.0 23.0 MUDPUSH II 5.0 50.0 10.0 33.0 ASL surf 7.0 337.9 48.3 81.3 AS 1 6.0 22.6 3.8 85.1 Drop top plug 0.0 0.0 5.0 90.1 Mud 8.0 131.6 16.5 106.6 Slow & bump plug 3.0 9.0 3.0 109.6 MUD REMOVAL Recommended Mud Properties: 9.5 ppg, Pv < 15, TY < 15. As thin and light as possible to aid in mud removal during cementing. Spacer Properties: 10.5 ppg MudPUSH* II, Pv = 17-21, TY = 20-25 Centralizers: Recommend 1 per 2 joints beneath Permafrost. Mark of Schlumberger • • Schlumberger CemCAD E*well cementing recommendation for 9-5/8" Surface Casing Operator : ENI Well RockFlour#3 Country :USA Field Exploration State :Alaska Prepared for : Amjad Chaudhry Location Proposal No. : V1 Service Point Prudhoe Bay Date Prepared :November 28, 2006 Business Phone (907) 659-2434 FAX No. (907) 659 -2538 Prepared by Phone E-Mail Address Mike Martin (907) 263-4207 martin13@slb.com ~~,~~ . C~ ,. '7f ~ ~ q~~RT E Disclaimer Notice: This information is presented in goad faith, but no warranty is given by and Schlumberger assumes no liablliiy for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the wel I or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. Mark of Schlumberger • • Client ENI Well Rock Flour #3 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Section 1: well description Configuration :Casing Stage :Single Rig Type :Land Mud Line : 0.0 ft Total MD :2000.0 ft BHST : 37 degF Bit Size : 12 1/4 in Previous String MD OD Weight ID ft in Ib/ft in 100.0 13 3/8 68.0 12.415 Landing Collar MD :1920.0 ft Casing/liner Shoe MD :2000.0 ft I r~~r Casing/Liner MD OD Joint Weight ID Grade Collapse Burst Thread ft in ft Ib/ft in si si 2000.0 9 5/8 40.0 47.0 8.681 L-80 4760 6870 BTC Mean OH Diameter :12.250 in Mean Annular Excess :228.9 Mean OH Equivalent Diameter :16.779 in Total OH Volume :519.6 bbl (including excess) Caliper and Hole Size Data MD Caliper Excess Equiv. Diam. ft in % in 1800.0 12.250 250.0 17.135 2000.0 12.250 50.0 13.371 Max. Deviation Angle : 0 deg Max. DLS :0.000 deg/100ft Directional Survey Data MD TVD Deviation Azimuth Dogleg Sev. ft ft de de de /100ft 0.0 0.0 0.3 0.0 0.000 2000.0 2000.0 0.3 0.0 0.000 eni - maggiore 1.cfw ; 11-26-2006 ; Loadcase 956 Surf ;Version wcs-cem45_89 Page 2 • Client ENI Well Rock Flour #3 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Formation Data MD Frac. Pore Name Lithology (ft) (Ib/gal) (Ib/gal) 1800.0 12.50 8.30 P.Frost 2000.0 12.50 8.50 Sandstone Geothermal Temperature Profile MD TVD Temperature Gradient ft ft de F de F/100ft 0.0 0.0 32 0.0 1800.0 1800.0 32 0.0 2000.0 2000.0 37 0.3 S I r~~r Page 3 eni-maggiorei.cfw;ti-28-206; LoadCase958Surf;Versionwcs-cem45_89 • • Client ENI g rl~ Well Rock Flour#3 rj rg~r String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Section 2: ce ntralizer placement Top of centralization :1800.0 ft Bottom Cent. MD :1980.0 ft Casing Shoe :2000.0 ft NB of Cent. Used :3 NB of Floating Cent. :0 Centralizer Placement Bottom MD Nbr. Cent. / Cent. Name Code Min. STO @ Depth ft Joint % ft 2000.0 3 1 /2 S3123695-9 5/8-6-36 3/16" 97.4 1820.0 Centralizer Description Centralizer Tests Cent. Name Code Casing Max. Min. OD Rigid Origin Hole Size Running Restoring OD OD (in) (in) Force Force (in) (in) (Ibf) (Ibf) S3123695-9 5/8-6-36 9 5/8 13.626 10.811 No Houma 12.250 744.12 1994.06 3/16") (1) -Centralizer performance data is based on tests by WEATHERFORD as per the current API 10D specifications Page 4 eni - maggiore 1.cfw: 11-26-2006: Loadcase 956 Surf ; Version wcs-cem45_89 • Client ENI Well Rock Flour#3 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 9.50 Ib/gal Job volume :140.6 bbl MUDPUSH II DESIGN Fluid No: 4 Rheo. Model : HERSCHEL_B. At temp. : 65 degF S I r~~r Density :10.201b/gal k :1.80E-11bf.s^n/ft2 n :0.195 Ty :2.771bf/100ft2 Gel Strength : (Ibf/100ft2) Job volume :50.0 bbl ASL DESIGN Fluid No: 2 Rheo. Model : HERSCHEL_B. At temp. : 65 degF DESIGN BLEND Name : G Dry Density : 199.77 Ib/ft3 Sack Weight : 941b BASE FLUID Type :Fresh water Density :10.701b/gal k :5.42E-31bf.s^n/ft2 n :0.663 Ty :9.561bf/100ft2 Gel Strength : (Ibf/100ft2) SLURRY Mix Fluid :20.722 gal/sk Yield :4.45 ft3/sk Porosity :62.3 Density :8.321b/gal Job volume :337.9 bbl Quantity : 426.74 sk Solid Fraction :37.7 Base Fluid :20.153 gal/sk AS1 DESIGN Fluid No: 5 Rheo. Model : HERSCHEL_B. At temp. : 65 degF DESIGN BLEND Name : ArcticSET1 Dry Density : 174.56 Ib/ft3 Sack Weight : 80 Ib BASE FLUID Type :Fresh water Density :15.701b/gal k :1.35E-31bf.s^n/ft2 n :1.068 Ty :5.431bf/100ft2 Gel Strength : (Ibf/100ft2) SLURRY Mix Fluid :3.536 gal/sk Yield :0.93 ft3/sk Porosity :50.8 Density :8.321b/gal Job volume :22.6 bbl Quantity :136.45 sk Solid Fraction :49.2 Base Fluid :3.536 gal/sk • Page 5 eni-maggiore l.ciw;11-28d~~6; LoadCase 958 Surf; Version wcs-cem45_89 Client ENI ~ I r~~r Well Rock Flour #3 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Section 4: fluid sequence Original fluid Mud 9.50 Ib/gal P~ : 20.000 cP Tv :30.00 Ibf/100ft2 Displacement Volume 140.6 bbl Total Volume 591.0 bbl TOC 0.0 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology bbl ft ft Ib/ al Water 40.0 0.0 8.32 viscosity:1.000 cP MUDPUSH II 50.0 0.0 10.20 k:1.80E-1 Ibf.s^n/ft2 n:0.195 Tv:2.77 Ibf/100ft2 ASL surf 337.9 1800.0 10.70 k:5.42E-3 Ibf.s^n/ft2 n:0.663 Tv:9.56 Ibf/100ft2 AS1 22.6 200.0 1800.0 15.70 k:1.35E-3lbf.s^n/ft2 n:1.068 Tv:5.43Ibf/100ft2 Mud 140.6 0.0 9.50 P~:20.000 cP Tv:30.00 Ibf/100ft2 Static Security Checks Frac 9 psi at 100.0 ft Pore 12 psi at 100.0 ft Collapse 4516 psi at 1920.0 ft Burst 6870 psi at 0.0 ft Cs .Pum out 35 ton Section 5: pumping schedule Name Flow Rate (bbl/min) Volume (bbl) Pumping Schedule Stage Time Cum.Vol (min) (bbl). Inj. Temp. de F Comments Water 5.0 10.0 2.0 10.0 80 Pause 0.0 0.0 10.0 0.0 80 Pressure test lines Water 5.0 30.0 6.0 40.0 80 Pause 0.0 0.0 5.0 0.0 80 Drop bottom plug MUDPUSH II 5.0 50.0 10.0 50.0 80 ASL surf 7.0 337.9 48.3 337.9 80 ASi 6.0 22.6 3.8 22.6 80 Pause 0.0 0.0 5.0 0.0 80 Drop top plug Mud 8.0 131.6 16.5 131.6 80 Mud 3.0 9.0 3.0 140.6 80 Total 01:49 591.0 bbl hr:mn Dynamic Security Checks Frac 5 psi at 100.0 ft Pore 0 psi at 100.0 ft Collapse 4516 psi at 1920.0 ft Burst 6681 si at 0.0 ft Page 6 eni - maggiore 1.cfw; 11 d8-2006; Loadcase 958 Surf; Version wcs-cem45_69 • Client ENI Well Rock Flour#3 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf ft o~ ~ O O v I 0 0 ao 0 0 N g 0 S- N O N - Ib/gal 8 12 16 ---1 - Hydrostatic - ruin. Hydrostatic - Max. Dynamic - - Min. Dynamc - Frac Pore Fluid Sequence Dynamic Well Security m N N N d C C Q C • Sc~l urger O ~ N ~ Calc. WHP I :N ao, ~° T 2 o i , 0 40 80 120 Time (min) o De th = 2000 ft __ C N . ~ ICI -Annular Vebc' E ~_ -- To ~ `~~' N C C Q O 0 40 80 120 Time (min) Time (min) ~_ E n a~ m 2 3 0 Time (min) eni - maggiore 1.cfw; 11-28-200fi; Loadcase 958 Surf ; Version wcs-cem45_89 Page 7 RE: Rock Flour #3--again ~ ~ Subject: RE: Rack Flour #3--again From: Bill Penrose <bill@fairweather.com> Date: Fri, 19 Jan 2007 08:45:04 -0900 Tos Thomas Maunder <tom_maunderC~admin.state.ak.us> CC: Steve Davies <steve davies@admin.state.ak.us> Tom and Steve, As promised, here are the logging programs for Rock Flour #3 and Maggiore #1. They're the same except for the TD's. Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us Sent: Friday, January 19, 2007 8:08 AM To: Bill Penrose Cc: Steve Davies Subject: Re: Rock Flour #3--again Sorry Bill, but I forgot to mention about the updated logging program we discussed yesterday. Thanks. Thomas Maunder wrote, On 1/19/2007 8:05 AM: Bill, A couple of items as we review the application. 1. The 9-5/8" casing depth on the 401 sheet is given as 3950'. Should this be 2000' as in the text? 2. On the abnormal pressure evaluation, the investigative/proposed depth given is 3400' sstvd which is 550' shallower than the proposed td. Could you reconcile these two items. Thanks, Tom Maunder, PE AOGCC Content-Description: RF #3 Logging Program.doc RF #3 Logging Program.doc Content-Type: application/msword Content-Encoding: base64 __ ___ Content-Description: Maggiore #1 Logging Program.doc Maggiore #1 Logging Program.doc Content-Type: application/msword Content-Encoding: base64 __ __ ~~~~ ,~~. c~-~ 1 of 1 6/21 /200? 9:17 AM ~ • ENI Petroleum Inc. Rock Flour #3 LOGGING PROGRAM Formation Evaluation While Drilling: Contractor: Schlumberger Oilfield Services FEWD tools: Casing /shoe: hole size: measurements: tool: 13.375" 12.25" GR / Rt GR/ARC PWD 9.875" 8.5" GR/ Rt GR /GVR to top of N sand At total depth make a mad pass over the entire open hole interval (for complete / continuous LWD log). Wireline Logging: Contractor: Baker Atlas Log interval: from total depth of 3,950' TVD to the 13.375" casing shoe at 2,000' MD / TVD. Hole Size: 8.5" Services: will be a Grand Slam (Spectral Gamma Ray/CN/ZDL/HDIL/XMAC), GR/ CBIL /HDIP, GR /MREX, RCI, sidewall cores and velocity survey (VSP). Run 1: GSLAM (Spectral Gamma Ray/CN/ZDL/HDIL/XMAC) Run 2: GR/ CBIL /HDIP Run 3: GR / MREX Run 4: RCI -Formation Pressures and Samples (see below) Run 5: VSP - (see below) Run 6: SWCs (50) Formation Pressures and Samples Tool: RCI Conveyance: Wireline Straddle Packer on PCL (Optional) Sample Tanks: 2mini-samplers (12 tanks) + 1 SPT II (2 tanks) Configuration: Standard tanks - 8 x 840 cc Single Phase -- 6 x 450 cc Formation Pressures: approximately 25 in the N, OA & OB sands Formation Samples: Standard Single Phase SPT II Na 2 1 1 Nb 2 1 OA 2 1 1 OB 2 1 VSP - Interval: 3,950' MD - 2,000' MD every 50' levels (39) 2,000' MD -100' MD every 100' levels (19) * AOGCC format CD ROM and hardcopies has to be sent directly to AOGCC Mud Logging Services: Contractor: Epoch Well Services (a Nabors Co.) Services: Reduced Service Log interval: From 20" casing shoe at 100' MD /TVD to TD @ 3,950' MD /TVD Services: Operating Service O eratin~ Services Cutting Sampling Interval = 30' and every 10' in all ZOI 4 surface loggers with at least two senior alternately on duty All equipment and sensor required Real-time data monitoring: The Mudlogging data will be displayed in real time through the BHI Riglink AOGCC copies have to be sent directly Geochemical Samples: Isotubes: Frequency 100' MD to 2000' MD 500' 2000' MD to 3,950' MD Total Depth 30' (Increase amount in ZOI and Shows) RE: Rock Flour #3 Sub,~ect: RE: Rock Flour #3 From: Bill Penrose <bill@fairweather.com> Date: Fri, 19 Jan ?007 08:17:57 -0900 To: Thu~~r.1s Maunder ~ tong n~aundcr<<r-admir~.5tate.ak.us=~ Tom, • The 9-5/8" casing setting depth on the 401 is an error. The well's planned TD was inserted by mistake. The 9-5/8" setting depth will. indeed be 2,000'. The abnormal pressure evaluation references 3,400' as the proposed TD because that's what it was when the evaluation was written. The TD has subsequently been changed to 3,950'. Note the evaluation includes seismic and offsetting well data that indicates the expected benign pressure environment extends to and beyond the new TD. Regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 -----Original Message----- From: Thomas Maunder [mail.ta:tam inaunder;~ia.t3r:.i.n.sta.te Sent: Friday, January 19, 2007 8:06 AM To: Bill Penrose Cc: Steve Davies Subject: Rock Flour #3 ak.us] Bill, A couple of items as we review the application. 1. The 9-5/8" casing depth on the 401 sheet is given as 3950'. Should this be 2000' as in the text? 2. On the abnormal pressure evaluation, the investigative/proposed depth given is 3400' sstvd which is -550' shallower than the proposed td. Could you reconcile these two items. Thanks, Tom Maunder, PE AOGCC 1 of 1 1/19/2007 8:21 AM • • __ __ _, ..r y _ _ ,_ .. _.. _. 16614' FAIRWEATHER EXPLORATION F1RSr NaTiot~A~ SANK A L as K a & PRODUCTION SERVICES INC. as-s-~252 GENERAL ACCOUNT 2000 EAST 88TH AVENUE, SUITE 200 DATE AMOUNT ANCHORAGE, AK 99507-3804 ;~ PH.(so7)2sa-sacs 1/17/2007- $100.00 '_ 0 PAY One Hundred Dollars and 00 Cents a m D J U C TO THE `_ ORDER STATE OF ALASKA - AOGCC '~ a OF .333 WEST 7TH AVE SUITE 100 ANCHORAGE AK 99501 USA 1.!_v •• ~~ Y~- - "'" II'0L66L411' ~:1 2 5 200060~: OLL2 823 Oli' r • '~'RA~SI0~ITT'AL LETTER C~IECKLIST WELL NANtE ,~~-~~ ~a~.f- 3 PTD# zo ~ - ~~~ Development Service `~ Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter ' CHECK ADD-ONS TEXT FOR APPROVAL LETTER Vb`I•iAT ~ (OPTIONS) APPLIES MULTI LATERAL ~ The permit is for a new wellbore segment of existing i ([f last two digits ~ we[l API No. 30- - - . ' in Permit No. i AP[ number ,' between 60-69) , are ~ t ;Production should continue to be reported as a Function of the original AP[ number stated above. PLOT HOLE [n accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both PH) and API number i ;well name ( (30_ _ -_~ from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION ~ 23.0». Approval to perforate and produce /inject is contingent ,' I upon issuance of a conservation order approving a spacing I exception. assumes the ~ liability of any protest to the spacing exception that may occur. DRY D[TCH ;All dry ditch sample sets submitted to the Commission must be in i SA!~[PLE I no greater than 30' sample intervals from below the permafrost or ; from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permi*_: Non-Conventional ~ production or production testing of coal bed methane is not allowed i Well for (name of well) until after (Com~anv Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the , i '' Commission to obtain advance approval of such water well testing I ;Program. Rev: 12~i06 C 'jody`,transmittal_checklist ~ • ~'' ^ rn o ~ ~ ~ ~~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~~ m a y y ,~ c y, m ~ ai; ~ 'o' O, c, i y ~ o y c y Z o. ~, af6i, o d ~ ,~, a ~, L d' ~~ c o ~ y, o, rn ~ o a c p ~ Z. LL, o a, ~ N, a y c. ~, ~ o o °~ y ~ y. a ° o , . ui; X N ~ ~ d~ u ~ ~ ~~ o, ~ ~ ~ ~ ~ ~ a, ~ ~ °~ ~ ~ m ~ o~ o. ' N' _ t m p O a U, N o? F- ~ ~ ~ a, N ~ y. . ~ N o ' 4. 3, ~ ~+ ~, i y a, ~, ~ a ~ a' ~ ~ N ri ~ ~ ~~ O ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ f6. ~ ~ O ~~ N. ~ m ~ y, C ~~ ~ L a ° ~ ~ , , ~ , ~ d. 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