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207-006
THE 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) ? D 1 O 7 - C o ( From: Conway Patrick [ Patrick .Conway @enipetroleum.com] 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 (0) 907 - 670 -8501 � � 2Q (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 Aaffli ore—=t Regg, James B (CED) Py -b 2-070060 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 [ma!Ito: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 • • Site Cleanup — Maggiore 1 (PTD 2070060) and Rock Flour 3 (PTD 2070050) Exploration Sites August 2010 Photographs provided by ENI's Patrick Conway by email October 11, 2010. w .w,,.r *" G e , Cement and other manmade debris removed from Maggiore #1 and Rock Flour #3 locations; photos taken during August 3, 1. 2010 helicopter survey f . 1144 — 4 4 j >. if, h s Maggiore and Rock Flour Locations — Site Cleanup Page 1 of 2 • • Ponding at Maggiore #1; • ' fi r _.' ''" v r "c` water depth up to 12"; no .. 4 '4' ' "' �" • ' ' . -- casing stub exposed; photo taken during August 3, • ' ' 2010 helicopter survey M' ,' , „.#0:7" tie 9 • a 4 Photo takenJuly 13, 2010; sling loading out large debris from Maggiore #1 and Rock Flour #3 Maggiore and Rock Flour Locations — Site Cleanup Page 2 of 2 • • Day 1 7/10/07 12:30 pm start due to foggy conditions — clean -up of Maggiore #1 and Rock Flour #3 Thei 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 F 7 ■ - Y - Rock Flour #2 after clean -up — shows mud -spill in- between two yellow sand bags i t I I r a A: w t 3 « w. Maggiore #1 after clean -up • • t '''� '"t �'" : .8r t� `'±1 gym „ ; ��' ?;. Y Se ,, .t• �` Maggiore #1 after clean -up — shows large 12X12 timber that has been picked up. i i • • •'T R • • • ,, 4ni .4,-- "K y4Ja ;' t i° . ?gyp 7r • ik ; x.,.x ^ let a „rr • - • { T ' Maggiore #1 after clean -up • • Magg #1 after clean -up - " 1. yt • �• .A >Vj' .y 4 x e r M % ,•. its , ,,t' '1• •. ° f , 9r< f i . h:+ �y -# s � '1 ma , y c l. iP tip ,�`YYr° '' s a , . a" 1 . � ` sj* i .� _ Y ~9 Pi , . r i► „St -,,,% . ` .`t- e r ', ,, , � , ] , ;t y . - :q f ; y,' ft !. ' 1 it • � t ' � 3 i 4M , '+F "1 , '' T��0.4' i:, Maggiore #1 so mound — typ of all • • 4 4r) .'v * s K k I i • Rock Flour #3 after clean -up. Shows cement block that was left • • w Y i g . • • Rock Flour #3 after clean -up. Shows cement block that was left S r „. j T k � y _ y,p 1 . ,. ) ,11 a ma yy, it 4 % ** I , ' .. , y t. .p t ; . " ± _ ± ( f A i ,,,,I 4' .' . 11,.,,,. ' 7 y ' iripk TM r �t wc . 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June 29, 2010 Maurizio Grandi Wells Operation Project Manager ENI US Operating Company ~~~~~ _; ~ f,~ ,~; ~ ~f! it 3800 Center Point Drive, Suite 300 Anchorage, AK 99503 Subject: Location Clearance Maggiore #1 ~PTT3 207-006} Dear Mr. Grandi: We have been informed by State of Alaska Department of Natural Resources (DNR) that lease ADL-0390660 is being surrendered voluntarily 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 Maggiore #1 location clearance inspections noting the deficiencies, namely the inability to do an on-ground assessment of the Maggiore #1 location and cement debris found at the Maggiore #1 well location. Please contact Jim Regg at 907-793-1236 to arrange for final inspections of the Maggiore #1 well Location. Sincerely, Daniel T. Seamount, Jr. Chair, Commissioner Attachments • McMains, Stephen E (DOA • From: McMains, Stephen E (DOA) Sent: Tuesday, June 29, 2010 8:29 AM To: Eddy, Allen R (DNR) Cc: Colombie, Jody J (DOA); Stephen F Davies Subject: RE: surrendered leases WellLease W1 Fermit API WeIINo Well_Nm WI Status t_Status Cmmnt ADL0390658 2070300 50029233470000 MAGGIORE 3XX EXPIR 3/5/2009 The permit expired on this lease and the well was never drilled. We1lLease WI Permit API We11No Well Nm - Wl .Status Dt Status: Cmm-t - ~1DL0390660 2070060 50029233420000 MAGGIORE 1 P&A ~ 3/15/2007 This well was drilled and currently is Plugged and Abandoned, but no final site clearance is complete. There is a piece of timber 12 ft by 12 ft still on the site that needs to be removed by the operator. AEI the other leases on the attachment had no wells permitted on them. From: Eddy, Allen R (DNR) Sent: Monday, June 28, 2010 1:25 PM To: Colombie, Jody J (DOA); McMains, Stephen E (DOA); Seamount, Dan T (DOA); Havelock, Brian E (DNR); Easton, John R (DNR); Rader, Matthew W (DNR) Cc: Eddy, Allen R (DNR) Subject: surrendered leases Leasing Section received notices from ENI and FEX L.P. indicating that they will be surrendering 38 leases total (19 for ENI and 19 for FEX L.P.). Please see attached spreadsheet. Allen R. Eddy Jr. Division of Oil and Gas 550 West 7th Avenue, Suite 800 Anchorage, AK 99501 Phone: 907-375-8259 Fax: 907-269-8943 1 • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg P. I. Supervisor DATE: July 12, 2007 FROM: Bob Noble SUBJECT: Location Clearance Petroleum Inspector Hemi St 3-9-11 (PTD 169-037) Rockfour #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 i_ocation Clearance Inspection _ Ailaggiore Photos by AOGCG Inspector Bob Noble July 12; 2007 Mound at Maggiore 1 wellbore location (note - drilled from ice pad) 12x12 timber neaz Maggiore pad location STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Surtace Abandonment /Location Clearance /Suspended Well ( Title 20 AAC 25.170 ) ~~~V /~f.: VY)/ ~~~ ~ ~~'" FILE INFORMATION: Operator: ENI Well Name: Ma lore #1 Address: PTD No.: 207-006 API No. 50- Surface Location (From Sec. Line): Unit or Lease Name: North/South EastM/est Field and Pool: Section: _ Township: _ Range: _ Meridian: _ Downhole P&A Date: 20 AAC 25.120 -ABANDONMENT MARKER: Insp. Date: Surtace 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 ? Ins ector: 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: Ins ector: Insp. Date: 7112/07 20 AAC 25.170 -LOCATION CLEANUP: Approval Date: Pit's filled in? Yes Liners Removed or Buried? Yes Debris Removed: No Notes: There is a 12" X 12" X 4' timber on location. The removed chunks of cement while we were there. General condition of padllocation: Good (Rough, Smooth, Contoured, Flat, Natural ) Notes: It was an ice ad and the onl si ns left is the mound over the cellar. Type of area surrounding location: Good (Wooded,Tundra,Grass,Brush,Dirt,Gravel,Sand) Debris on surrounding area: Onl debris that I saw is noted above. Cement chunks removed while location Notes: Access road present? No Type road: Ice (Dirt, Greve!, Ice, Other) Condition: Condition of road: Good Notes: Cellar filled in? yes Type of fill: Gravel Height above grade: 4' Notes: Type work needed at this location: 12x1 Z on tundra near well site should be removed Ins ector. Bob Noble j RECOMMENDED FOR APPROVAL OF ABANDONMEI Yes No~ (If "No" See Reason ) Distribution: orig -Well file ^ - Operetof c -Database c -Inspector r .,1 ~-c) 7 1~ Reason: tZ K (Z I~ ~~~ ~~~ ~L~11,~'~i a/tP~ir ZL~~S~ ~ sli:;L~k~ 4~ r~~4 Final Inspeiti~i i p8rf Vrmed? Y@S NO Final Approval By: Title: DATE: Sheet by L.G. 8!5!00 2007-0712 Loc Clearance Maggiore-1_bn.xls 7/19/2007 w ~ ~ i .. ~.- ~. ~ ' .,. .r.. «' ..: y~ ~~ ~ wh y ~ ~ ~ ~ ' ~ ,~~ ~ :~~ MICROFILMED 6/30/204 0 DO NOT PLACE ANY NEW MATERLAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc 1s'I~,~,~ DATA SUBMITTAL COMPLIANCE. REPORT 3/26/2009 Permit to Drill 2070060 Well Name/No. MAGGIORE 1 Operator ENI PETROLEUM API No. 50-029-23342-00-00 MD 9500 TVD 4404 Completion Date 3/15/2007 Completion Status P&A Current Status P&A UIC N REQUIRED INFORMATION Mud Log Yes Samples IVo DATA INFORMATION Types Electric or Other Logs Run: Too lenghty for this data field -see 10-407 Well Log Information: Log/ Electr Data Digital Dataset Ty Med/Frmt Number Name D C Las 14596 Induction/Resistivity D C Pdf 14597~ample C Las 14598 InductionlResistivity i tD C Pdf 14599~ee Notes C Las 15000 `wee Notes C Pdf 15078 ~~e Notes Mud Log See Notes Directional Survey Yes (data taken from Logs Portion of Master Well Data Maint Log Log Run Interval OH / Scale Media No Start Stop CH Received Comments 205 9500 Open 4/11/2007 Composite, ROP, GR, RES, RHOB, Den, Neu w/Graphics Open 4/11/2007 Sidewall Core Analysis with Photospec report by CoreLab 0 0 I 4/11/2007 Multiple LAS files, Looks like Field Files. 0 0 Open 4/11/2007 Final Well Report in Digital, includes all mudlogs, final reports, sampling w/Graphics 0 0 Open 4!1112007 LAS Porosity, Perm, GR, OiIS w/Graphics 500 9450 Open 4/27/2007 Verical Incidence VSP, prim velocity survey analysis 6-Mar-2007 2 Col 110 9500 Open 5!7/2007 Formation Log MD 27-Feb- 2007 1 5026 9500 Open 5/7/2007 Resv Characterization ~~ Cdr Instrument Sample Log, Fast Response Quartz Gauge GR Log. 28-Feb- 2007 DATA SUBMITTAL COMPLIANCE REPORT 3/26/2009 Permit to Drill 2070060 Well Name/No. MAGGIORE 1 Operator ENI PETROLEUM API No. 50-029-23342-00-00 MD 9500 TVD 4404 Completion Date 3/15/2007 Completion Status P&A Current Status P&A UIC N ~g Caliper log 5 Col 1 6500 8700 Open 5/7/2007 6-Arm Caliper Log, GR 28- Feb-2007 og Magnetic Resonance 5 Col 1 6500 8700 Open 5/7/2007 MRE Log 28-Feb-2007 og See Notes 5 Col 1 6820 9047 Open 5/7/2007 Sidewall Corgun 4-Mar- 2007 ~ og See Notes 5 Col 1 6564 9060 Open 5/7/2007 Resv Characterization Instrument Sample Log, Fast Response Quartz i Gauge GR Log. 28-Feb- 'tog See Notes 25 Col 600 9462 Open 5/7/2007 2007 TVD AND Vision Quad Record Mode Log, Azimuthal Den and Pef. og See Notes 25 Col 600 9462 Open 5/7/2007 MD AND Vision Quad Record Mode Log, Azimuthal Den and Pef. i InductionlResistivity 25 Col 250 9462 Open 5/7/2007 TVD Vision Service Comp Recoded Mode Log, Geo Vision Res, ARC, AND i~v ~ Log Induction/Resistivity 25 Col 250 9462 Open 5/7/2007 MD Vision Service Comp Recoded Mode Log, Geo Vision Res, ARC, F+(1<tD hp ~ Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments Cores and/or Sam ples are required to be submitted. This record automatically created from Permit to Dril l Module on: 1/24/2007. r ~ r-..J DATA SUBMITTAL COMPLIANCE REPORT 3/26/2009 Permit to Drill 2070060 Well Name/No. MAGGIORE 1 Operator ENI PETROLEUM API No. 50-029-23342-00-00 MD 9500 TVD 4404 Completion Date 3/15/2007 Completion Status P&A Current Status P&A UIC N ADDITIONAL INFORMATION Well Cored? Y /~N Cj.y~ ~ ~ ~(( ~~,~ Chips Received? 'rW-~-'PaI~-l Received? v ~oP"I'~rYZy+.~f : ~~ c~;, ~`a,~ ~o ~'~ ~ v~ 1 Comments: Compliance Reviewed By: Daily History Received? ~v, N Formation Tops ~'i' N Date: __ MEMORANDUM Alaska Oil and Gas Conservation Commission TO: FROM: Jim Regg P. I. Supervisor State of Alaska DATE: July 12, 2007 Bob Noble SUBJECT: Location Clearance Petroleum Inspector Hemi St 3-9-11 (PTD 169-037) Rockfour #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 _ Maggiore Photos by AOGCC Inspector Bob Noble July 12, 2007 Mound at Maggiore 1 wellbore location (note - drilled from ice pad) l 2x 12 timber near Maggiore pad location • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Surtace Abandonment /Location Clearance /Suspended Well ( Title 20 AAC 25.170 ) ~~~~ ~~~` FILE INFORMATION: Operator: ENI Well Name: Ma lore #1 Address: PTD No.: 207-006 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: Surtace 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 ? Ins ector: 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: 7/12/07 20 AAC 25.f 70 -LOCATION CLEANUP: Approval Date: Pit's filled in? Yes Liners Removed or Buried? Yes Debris Removed: No Notes: There is a 12" X 12" X 4' timber on location. The removed chunks of cement while we were there. General condition of pad/location: Good (Rough, Smooth, Contoured, Flat, Natural ) Notes: It was an ice ad and the onl si ns left is the mound over the cellar. Type of area surrounding location: Good (Wooded,Tundra,Grass,Brush,Dirt,Gravel,Sand) Debris on surrounding area: Onl debris that I saw is noted above. Cement chunks removed white location Notes: Access road present? No Type road: Ice (Dirt, Gravel, tce, Other) Condition: Condition of road: Good Notes: Cellar filled in? yes Type of fill: Gravel Height above grade: 4' Notes: Type work needed at this location: 12x12 on tundra near well site should be removed; Ins ector: Bob Noble ~~I~~7 RECOMMENDED FOR APPROVAL OF ABANDONMEt Yes No~ (If "No" See Reason ) Distribution: Reason: ~ f, !~(,L~- t~'r~ -~G~~~~;~ ,~~.y~- LiJ~ ~5~ ~ 1,t;L orig -Well file .. - Operator Final ii Spciti^ui ~ pcriariTied? Yes NO c -Database c -inspector Final Approval By: DATE: Title: Sheet by L.G. 8!5!00 2007-0712_Loc_Clearance_Maggiore-1_bn.xls 7/19/2007 ` f + ~ I a,~ ~. ~~ r ~~ M ~~1 ~ ~ ,I~_ Fairweather E£tP Services, Inc. ~~~ • ~~~ 2000 E. 88th Ave., Suite 200 DATE May 4, 2007 Anchorage, Alaska 99507 MAY 0 7 2001 CUSTOMER ID AOGCC 907-258-3446 brian. bripandi(a~fairweather.co ~~ & GaS CAt1S.G0(NnISSIOR A~ SNIP TO Mr. John Norman, Chair Ataska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 907-793-1225 ~/, ~~~ (~~ BILL TO ITEM # DESCRIPTION QUANTITY 1 Rock Flour #3 -SLB -GeoVision Resistivity Service -TVD 1.00 2 Rock Flour #2 -SLB -ARC ft RAB Resistivity Log - MD 1.00 3 Rock Flour #2 -SLB -ARC & 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 ~ Maggiore #1 -SLB -Vision Services Composite Recorded Mode Log - MD 1.00 $ Maggiore #1 -SLB -ADN Vision Quadrants Recorded Mode Log -TVD 1.00 9 Rock Flour #2 -Epoch -Formation Log MD 1.00 10 Rock Flour #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 Please contact Brian Brigandi at [907-343-0319] with any questions or comments. • - • ~-- ;.~ ~- <~~_ Fairweather EbtP 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 ~~~~~~~n 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 tong 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. STATE OF ALASKA ALASKA OtL AND GAS CONSERVATION COMMtSS10N ~ECE~vED ~~s APR ~ A 2007 WELL COMPLET10hl OR RECOMPLETION REPORT 9d;~l~~~i Cons. Commission ia. Well Status: Oi!^ Gas ^ Plugged ^ A6andaned ~ Suspended ^ 2QAAC 25.105 ~ ZOAAC 25.110 GiNJ^ WINJ^ WDSPL^ WAG^ Other^ No. ofCompietions: ib. Well Class: tiC OCBg@ Deveigpmeflt ^ ExplarataryQ Service ^ StratigraphicTest^ 2.Operator Name: Eni Petroleum, Inc. 5. Date Comp., Susp„ ar Aband.: 3l1Sl2007 ~ 12. Permit to Drill Number: 207-0OB 3. Address: 1201 Louisiana St, Suite 3500, Houston, TX 77002 6. Date Spudded; Lai 2/15/2007 / 13. APi Number: 50-028-23342-00 ~ 4a. l.ogtion of Weil {Govemmentai Section}; Surface: 4123' FSL, 371' FEL, Sec 35, TBN, R11E, UM ~ 7. Dam TD Reached: 2t27t200T ~ 14. Well Name and Number. Maggiore #1 ~ Top of Productive Horizon: 1185` FNL, 78' FWL, Sec35, TBN, R11E, UM 8. KB {ft above MSL}: 184' Ground {ft MSL}: 152" 15. FieldiPool{s}: Total Depth: 1165' FNL, 2525 FWL, Sec 34, T6N, R11E, UM 3, Plug Bade Depth(MD+TVD}; Surface Exploratory 4b. Location of Well {State Base Plane Coordinates, NAD 27}: Surface: x- 587,722,27 ~ y- 5,853,1T9A1 ~°" Zane- 4 10. Total Depth (MD + TVD}: - 9,500' MD! 4,404• TVD 16. Property Designation; ADL 390660 r" TPi: x- 582893.06 y- 5853086.2 Zone- 4 Total Depth: x- 580060.82 y- 5853086.51 Zone- 4 11. SSSV gepth (MD +TVD}: N!A il. Land Use Permit: NIA 18. Directional Survey: Yes ~ No (Submit etedronic and printed inta`rrtation per 20 AAG 25.050} f9. Water Depth, ff Offshore: WA {ft MSL} 20. Thickness of Permafrost (TVD}. 1,458' 21. Logs Obtained {List ail cogs here and submit elec3ronic and printed infomladcxt pet 20 AAC 25.071): Mud Log, GR, Rt, PWD, Density, Neutron, Caliper, Tooi Face, ECD, MREX/Caliper, RCi, VSP, SWC 22. CASING, LINER AND CEMENTING RECORD CASING WT, PER FT. r,,RADE SETTING DEPTH MD TOP BOTTOM SETTING D TOP EPTH TVD BOTTOM HOLE SIZE CEMENTING RECORD AMOUNT PULLED 13.3!8" Surface 113' Surface 113' 16" Grouted to surface None 9-5/8" 40# L-80 Surfaoa 2,401' Surface 2,006' 12-114^ Cmtd to surf wt 442 bb[s Nano 23. Open to production or injecdon7 Yes ^ Noa If Yes, list each 24. TUBING RECORD interval open {MD+TVD of lop & Bottom; Perforation Size and Number}: SIZE DEPTH SET {MD} PACKER SET {MD} NIA 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL. {titD) AMOUNT AND KIND OF MATERIAL USED N!A 26. PRODUCTION TEST Date First Production: N!A Method of Operation (Flowing, gas lift, etc.}: N1A Date of Test: Hours Tested: Product~n for Test Period Oil-861: Gas-MCF: Water-Bbt: Choke Siza: Gas-0i1 Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate r- Oil-861: Gas-MCF; Water-Bbl: Oil Gravity- APi {ccxr}: 27. CORE DATA Conventional Cores}Acquired? Yes ^ No ~ Sidewalt Cores Acquired? Yes a No ^ B Yes to either question, list formations and intervals cored {MD+TW of top and bottom of Bch}, and summarize 6tltology and presence ~ oil, gas ar water {submit separate sheets with this farm, ff needed}. Submit detailed descriptions, crone chCps, photographs and laboratory analytical results per 20 AAC 25.071. Nltervats cared ranged fro-n 6,780` to 9.047' MD'. Detailed descriptlans will be submitted separately upon receipt from fhe analysis lab. See mud Iog for lithology. No all, gas or water encountered in this welt. ,~ R BFI APx ~ ~ 2oa~ Farn 10-407 Revised 212007 CONTINUED ON REVERSE SIDE URI~~N.4L ~ t ` ~~~C~~/aT • 28. GEOLOGIC MARKERS {List al! formations and markers encountered}: 29. FORMATION TESTS NAME MD TVD Weli tested? Yes ® No ~ K yes, list u-tetvals and hannations tested, briefly summarizing test results. Attach separate sheets to Permafrost -Top Surface Surface this form, if needed, and submit detailed tes# infwmatbn per 20 AAC 25.071. Permafrost -Base 1,609' 1,530' ~ Schrader Bluff ([+IA Sand} 6,558' 3,541' Schrader Bluff (NB Sand} B,T6$' 3,604` Schrader Bluff (NC Sand} 6,899' 3,643° Schrader Bluff (OA1 Sand) 7,359' 3,771° Schrader Bluff (OA Sand} 7,703' 3,869` 5chrader Bluff (OB Sand} 8,766' 4,007' Farntation at fatal depth: Schrader Bluff 30. List of Attachments: Wellbare schematic, Weil as-bulk d' ram, Summa of a~ratk~rrs, Pitot~ of PBA, CO's containi to s. 31, f hereby certify that the foregoing is true and correct to ttre best of my knowledge. Contact: Bill Penrose 258.3446 Printed Name: David Dougail Title: HSE Manager Signature: ~ '' Phorte: 713-077-5799 Date: .,F ~°+ ~~' ~ ~ INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and )og on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole welt design is t~arrged. Item 18: Classification of Service wells: Gas Injectbn, Water lnjedion, Water-Alternating-Gas Injectlori. SaR Wafer Deposal, Water Supply for t ejection, Observation, w Other. Multiple rxxnpietbn is defined ~ a wail producing from more than one peal witlt production from each pool completely segregated. Each segregated pool is a completbn. Item 4b: TPI (Top of Produang Interval}. Item 8: The Kelly Bushing and Ground Level 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-UO-UO}. Item 20: Report true vertical ihtckness of permafrost in Box 20. Provide MD and TVD foi the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the beaten of the cementicg foal: Item 23: if this well is completed for separate production from more than one interval (multiple completion}, so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. {Submit a separate form for each additional interval to be separately pr~rced, showing the data pertinent b such interval}. item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Weber lnjecclGon, Gas Injection, Shut-in, or Other (explain}. Item 2T Provide a listing a# intervals cored and the corresponding formations, arxt a brief description in this box. Submit detailed description and analytical laboratory ir>fiormation required by 20 AAC 25.071. item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory infomtiation required by 20 AAC 25.071. Form 10-407 Revised 212007 ~~ I20 t Louisiana Si Suite 3500 Houston, Texas 77002 - U.S:A. Phone (7 13} 393 6 f 00 Fax (713) 393 6395 April l0, 2007 Mr. Sohn Norman, Chair Alaska OiI and Gas Conservation Commission 333 West 7~` Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completian Report Eni Petraleum: Maggiore #1 (PTD 207-005) Dear Commissioner Norman, U ~/~~ Alaska Ail & Qa~ Ca~i~y ~~~-s~~an ~n~h~ra~ Eni. Petroleum hereby submits its Well Completion Report for the work performed in drilling its Maggiore #1 explaration weal on the North Slope. Please find enclosed the following information for your files: I j Form 10-407 Well Completion ar Re-completion Report and Log 2j Well As-Built Survey 3 j Wellbore Schematic 4j Well Operations Summary 5j Photographic documentation of surface P&A bj CD's containing the mud log and all LED, MWD and wireline logs run If you have any questions or require additional information, please contact me at (713} 393-6122 or Bill Penrose at (907} 258-3444. Sincerely, ENI PETROLEUM David Dougall HSE Manager enclosures cc: Matteo Rivetti -Eni Bill Penrose -Fairweather d MI0701318 RP-2 d1 o' / ~ M1070131A RP-1 -N- r~ / ..~ A~ ~ COND OR OR ~ ~ / ICE PAD \ EL. 152.3' ~ ~ ''~ ~~ LEGEND -~- CONDUCTOR AS-BUILT ~ ~ '°f _ '_4.Cz'~• of i;`. ° ' _ _ 8 ~ sc ~ ~ ~ ~ 4~ ~' "~,„ ~ o r~,f ~ ~ ~~ M ~a `7 f ~• t~..• ~s 1. 1 , 4 ~^,~,~ .~a 26 <5' ~ 3 ~ j ` i ,. ,• 1. 6 ~i V - •/ "4r~ (`J / V ~ ~ ~ ~ ~ ©~ ~ rF 9 ~• ~ _.. _ y_ e 3 . ~ _,.4 ` r .rt d,. /1 ~J µ t ~ ~ ~. _ -i- ~ ~ ~ _ '"" ti ~ VICINITY MAP N.T.S. ~.at 1. DATE OF SURVEY: FEB. 9, 2007. 2. REF. FIELD BOOK: M107-01 PGS. 57-60. 3. COORDINATES ARE ALASKA STATE PLANE ZONE 4, NAD 27. 4. GEODETIC POSITIONS ARE NAD 27. 5. PAD AVERAGE SCALE FACTOR: 0.99990874. 6. HORIZONTAL AND VERTICAL CONTROL IS BASED ON NGS OPUS-CORS SOLUTIONS USING DSLI, PU01 AND PBOC CORS STATIONS WITH ELEVATION REDUCED TO ORTHOMETRIC ELEVATION USING GEOID99 MODEL. t HEREBY CERTIFY THAT 1 AM PROPERLY REGISTERED AND LICENSED TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS AS-BUILT REPRESENTS A SURVEY MADE 8Y ME OR UNDER MY DIRECT SUPERVISION AND THAT ALL D1MEN5IDNS AND OTHER DETAELS ARE CORRECT AS OF FEB. 9, 2007. LOCATED WITHIN PROTRACTED SECTION 35, T. 08 N., R. 11 E., UMIAT MERIDIAN, ALASKA WELL A.S.P. PLANT GEODETIC GEODETIC CELLAR SECTION N0. COORDINATES COORDINATES POSITION(DMS) POS1T[ON(D.DD) BOX ELEV. OFFSETS MAGGIORE Y=5,853,179.47 N= N/A 70'00'31.356" " ' ' 70.008710' ' ~ 152'3 4123' FSL ' X= 587,722.12 E= N A 58.081 149 17 149.299467 FEL 372 i r. rcooen --~----- MINtSM C MAN ~ N 8 ~ 0A1` ez/„ o~ PETROLEUM ALASKA ORAM7NG FRa ENt e,-ea ENI PETROLEUM 4"~ r~ (~ ~ ~ MAGGIORE WELL xA~ z ,-, a ,ssuto ron t~raawna. ^~ IoM ~r ~~••~••~•,~ AS-BUILT ~ °` ~ ,.. r-zee' NO DAPS RE Vt5117N B7 Cllw: rya "/~ ~ `-, _ r iviac~c~~c~r~ ~ i survey r~epc~rt Report Date: February 27, 2007 Survey I DLS Computation Method: Minimum Curvature / Lubinski Client: ENI Vertical Section Azimuth; 270.000° Field: ENI -Rock Flour Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure 1 Slot: Maggiore #1 /New Slot ND Reference Datum: Rotary Table Well: Maggiore #1 ND Reference Elevation: 186.00 ft relative to MSL Borehole: Maggiore #1 Sea Bed 1 Ground Level Elevation: 152.30 ft relative to MSL UWIIAPI#: 500292334200 Magnetic Declination: 23.623° Survey Name I Date: Maggiore #1 Current I February 16, 2007 Total field Strength: 57608.512 nT Tort l AHD 1 DDI 1 ERD ratio: 143.336° / 7666.07 ft 16.375 11.741 Magnetic Dip: 80.667° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: February 16, 2007 Location LatlLong: N 70.00870970, W 149.29946584 Magnetic Declination Model: BGGM 2006 Location Grid NIE YIX: N 5853179.410 ftUS, E 587722.270 ftUS North Reference: True Norlh Grid Convergence Angle: 10.65832704° Total Corr Mag North •> True North: +23.623° Grid Scale Factor: 0.99990874 Local Coordinates Referenced To; Well Head • Comments Measured Inclination Azimuth Sub-Sea ND ND Vertical Along Hole Closure NS EW DLS Northing Easting latitude Longitude Depth Section Departure ft de de ft ft k k k ft ft de 1100 k ftUS ftUS K l t V.VV U.UV V.VU -"I 25b.UU U.UU U.UU V.UU U.UU U.UU U.UU U.UU bi5b:51 /y.41 525! /LL.L/ N /U.UU25/Uy/U UV 14y.Lyy4Ub254 MWD Standard 117.68 0.14 175.10 -68.32 117.68 -0.01 0.14 0.14 -0.14 0.01 0.12 5853179.27 587722.28 N 70.00870931 W 149.29946574 201.49 0.22 175.10 15.49 201.49 -0.03 0.41 0.41 -0.41 0.03 0.10 5853179.00 587722.31 N 70.00870860 W 149.29946556 290.65 2.18 264.86 104.63 290.63 1.64 2.14 1.79 -0.73 -1.64 2.46 5853178.66 587720.64 N 70.00870771 W 149.29947893 380.88 3.75 266.11 194.73 380.73 6.29 6.81 6.39 -1.08 -6.29 1.74 5853178.26 587715.99 N 70.00870675 W 149.29951609 474.87 5.31 266.35 288.43 474.43 13.70 14.23 13.79 -1.57 -13.70 1.66 5853177.69 587708.59 N 70.00870542 W 149.29957523 562.88 7.11 268.69 375.92 561.92 23.21 23.75 23.29 -1.95 -23.21 2.06 5853177.19 587699.09 N 70.00870437 W 149.29965117 651.92 8.94 271.14 464.08 650.08 35.64 36.18 35.69 -1.94 -35.64 2.09 5853177.06 587686.66 N 70.00870440 W 149.29975040 742.94 11.98 272.92 553.58 739.58 52.15 52.70 52.16 -1.32 -52.15 3.36 5853177.49 587670.15 N 70.00870610 W 149.29988222 834.53 15.10 273.01 642.61 828.61 73.56 74.14 73.56 -0.21 -73.56 3.41 5853178.36 587648.73 N 70.00870914 W 149.30005319 855.06 15.60 273.00 662.41 848.41 78.99 79.57 78.99 0.08 -78.99 2.44 5853178.58 587643.30 N 70.00870992 W 149.30009 949.35 16.21 271.36 753.09 939.09 104.80 105.41 104.81 1.05 -104.80 0.80 5853179.26 587617.47 N 70.00871258 W 149.30030 1043.43 18.22 270.56 842.95 1028.95 132.64 133.25 132.65 1.51 -132.64 2.15 5853179.40 587589.63 N 70.00871382 W 149.30052497 1138.02 18.62 269.56 932.70 1118.70 162.53 163.14 162.54 1.54 -162.53 0.54 5853179.08 587559.75 N 70.00871390 W 149.30076361 1233.52 22.97 268.57 1021.95 1207.95 196.42 197.04 196.42 0.96 -196.42 4.57 5853178.11 587525.87 N 70.00871231 W 149.30103422 1327.49 26.88 268.99 1107.15 1293.15 236.01 236.63 236.01 0.12 -236.01 4.17 5853176.82 587486.30 N 70.00871003 W 149.30135031 1420.99 29.53 268.72 1189.54 1375.54 280.18 280.82 280.18 -0.76 -280.18 2.84 5853175.43 587442.14 N 70.00870760 W 149.30170306 1517.05 34.50 269.19 1270.97 1456.97 331.08 331.73 331.09 -1.68 -331.08 5.18 5853173.93 587391.26 N 70.00870510 W 149.30210949 1611.39 37.20 268.85 1347.43 1533.43 386.32 386.97 386.33 -2.63 -386.32 2.87 5853172.34 587336.04 N 70.00870250 W 149.30255056 1706.82 42.89 268.79 1420.46 1606.46 447.68 448.35 447.70 -3.89 -447.68 5.96 5853170.37 587274.70 N 70.00869903 W 149.30304052 1799.81 46.83 268.17 1486.36 1672.36 513.24 513.93 513.27 -5.65 -513.24 4.26 5853167.87 587209.18 N 70.00869423 W 149.30356397 1894.11 50.74 269.46 1548.48 1734.48 584.14 584.85 584.19 -7.09 -584.14 4.27 5853165.61 587138.30 N 70.00869028 W 149.30413014 1990.30 55.15 270.21 1606.43 1792.43 660.89 661.59 660.93 -7.29 -660.89 4.63 5853164.52 587061.57 N 70.00868970 W 149.30474293 SurveyEditor Ver SP 2.1 Bld(doc40x_100) New Slot\Maggiore #1\Maggiore #1\Maggiore #1 current Generated 2/28/2007 1:45 PM Page 1 of 3 Comments Measured Inclination Azimuth Sub-Sea TVD TVD Vertical Along Hole Closure NS EW DLS Northing Easting Latitude Longitude Depth Section Departure ft de de k k k ft k k k d 1100 ft kUS ftUS LU234.tf4 5ti.4L L/1.19 1F559.59 12145 .59 /39.05 /39.// /39.u/ -5.9e -/39.05 1.93 58531(18.00 586983.41 N /0.00869343 W 149.30536/03 2176.30 58.65 272.45 1708.68 1894 .68 816.16 816.93 816.16 -3.06 -816.16 2.51 5853166.97 586906.28 N 70.00870122 W 149.30598273 2271.1 B 57.64 272.37 1758.76 1944 .76 896.67 897.52 896.58 0.33 -896.67 1.07 5853169.43 586825.73 N 70.00871045 W 149.30662565 2336.57 58.58 273.06 1793.30 1979. 30 952.13 953.04 952.14 2.96 -952.13 1.69 5853171.43 586770.26 N 70.00871762 W 149.30706847 2441.94 58.62 272.36 1848.20 2034. 20 1041.97 1042.98 1041.99 7.21 -1041.97 0.57 5853174.65 586680.38 N 70.00872921 W 149.30778581 2503.15 59.12 271.14 1879.84 2065. 84 1094.34 1095.37 1094.37 8.81 -1094.34 1.89 5853175.64 586628.00 N 70.00873355 W 149.30820398 2557.62 59.08 270.84 1907.82 2093. 82 1141.07 1142.11 1141.11 9.62 -1141.07 0.48 5853175.92 586581.27 N 70.00873574 W 149.30857713 2652.20 59.27 269.20 1956.28 2142. 28 1222.29 1223.33 1222.32 9.64 -1222.29 1.50 5853175.01 586500.07 N 70.00873578 W 149.30922562 2748.07 59.44 266.09 2005.16 2191. 16 1304.68 1305.81 1304.70 6.25 -1304.68 2.80 5853170.67 586417.72 N 70.00872648 W 149.30988353 2842.99 59.30 266.15 2053.52 2239. 52 1386.17 1387.48 1386.17 0.73 -1386.17 0.16 5853164.21 586336.31 N 70.00871134 W 149.3105 2937.17 59.91 269.39 2101.18 2287. 18 1467.33 1468.71 1467.33 -2.43 -1467.33 3.04 5853160.13 586255.20 3 N 70.00870269 W 149.31118 3032.73 60.55 271.22 2148.63 2334. 63 1550.27 1551.66 1550.27 -1.98 -1550.27 1.79 5853159.62 586172.27 N 70.00870386 W 149.31184 3128.18 60.58 271.43 2195.54 2381. 54 1633.38 1634.79 1633.38 -0.06 -1633.38 0.19 5853160.59 586089.15 N 70.00870906 W 149.31250810 3229.83 60.72 271.18 2245.36 2431. 36 1721.96 1723.39 1721.96 1.96 -1721.96 0.25 5853161.59 586000.57 N 70.00871452 W 149.31321540 3325.43 61.10 270.04 2291.84 2477. 84 1805.49 1806.93 1805.49 2.85 -1805.49 1.12 5853161.51 585917.04 N 70.00871690 W 149.31388241 3420.11 62.78 270.24 2336.38 2522. 38 1889.04 1890.48 1889.04 3.05 -1889.04 1.78 5853160.76 585833.50 N 70.00871740 W 149.31454952 3512.48 63.88 271.61 2377.84 2563. 84 1971.56 1973.02 1971.57 4.39 -1971.56 1.78 5853161.15 585750.97 N 70.00872100 W 149.31520850 3609.02 64.74 270.95 2419.69 2605. 69 2058.54 2060.01 2058.55 6.33 -2058.54 1.08 5853162.09 585663.99 N 70.00872624 W 149.31590298 3703.12 65.02 270.12 2459.64 2645. 64 2143.73 2145.21 2143.75 7.13 -2143.73 0.85 5853161.91 585578.80 N 70.00872835 W 149.31658325 3799.13 65.29 269.89 2499.98 2685. 98 2230.86 2232.34 2230.87 7.13 -2230.86 0.36 5853160.91 585491.69 N 70.00872830 W 149.31727892 3894.32 66.03 270.62 2539.21 2725. 21 2317.58 2319.06 2317.60 7.52 -2317.58 1.05 5853160.30 585404.97 N 70.00872929 W 149.31797143 3994.27 67.00 271.45 2579.04 2765. 04 2409.24 2410.73 2409.26 9.18 -2409.24 1.23 5853160.91 585313.31 N 70.00873374 W 149.31870327 4089.96 68.35 270.14 2615.39 2801. 39 2497.74 2499.25 2497.76 10.40 -2497.74 1.90 5853161.11 585224.81 N 70.00873701 W 149.31940997 4185.34 68.98 271.34 2650.09 2836. 09 2586.58 2588.09 2586.60 11.55 -2586.58 1.35 5853161.24 585135.97 N 70.00874006 W 149.32011930 4280.21 70.63 270.25 2682.84 2868. 84 2675.60 2677.13 2675.63 12.78 -2675.60 2.05 5853161.45 585046.95 N 70.00874334 W 149.32083015 4373.65 71.90 271.44 2712.85 2898. 85 2764.08 2765.61 2764.11 14.09 -2764.08 1.82 5853161.74 584958.47 N 70.00874683 W 149.32153662 4466.27 72.47 268.98 2741.20 2927. 20 2852.25 2853.79 2852.28 14.41 -2852.25 2.60 5853161.05 584870.31 N 70.00874762 W 149.32224064 4562.79 73.60 270.83 2769.36 2955. 36 2944.56 2946.11 2944.59 14.26 -2944.56 2.18 5853159.84 584778.02 N 70.00874712 W 149.32297 4657.85 73.12 269.52 2796.58 2982. 58 3035.64 3037.19 3035.67 14.54 -3035.64 1.41 5853159.07 584686.95 N 70.00874778 W 149.32370 4750.76 73.12 268.95 2823.56 3009 .56 3124.53 3126.09 3124.56 13.35 -3124.53 0.59 5853156.87 584598.08 N 70.00874444 W 149.32441483 4845.94 73.00 267.21 2851.30 3037 .30 3215.53 3217.14 3215.55 10.30 -3215.53 1.75 5853152.77 584507.13 N 70.00873601 W 149.32514140 4938.82 73.01 265.97 2878.44 3064. 44 3304.19 3305.97 3304.20 5.02 -3304.19 1.28 5853146.47 584418.55 N 70.00872147 W 149.32584936 5031.95 73.27 265.66 2905.45 3091. 45 3393.08 3395.09 3393.08 -1.48 -3393.08 0.42 5853138.95 584329.74 N 70.00870359 W 149.32655910 5127.01 73.25 266.86 2932.84 3118. 84 3483.92 3486.12 3483.93 -7.42 -3483.92 1.21 5853131.96 584238.99 N 70.00868726 W 149.32728439 5221.89 73.01 267.95 2960.37 3146. 37 3574.62 3576.92 3574.64 -11.53 -3574.62 1.13 5853126.81 584148.35 N 70.00867591 W 149.32800862 5316.32 72.71 267.94 2988.20 3174. 20 3664.80 3667.16 3664.83 -14.77 -3664.80 0.32 5853122.54 584058.23 N 70.00866695 W 149.32872866 5410.17 72.76 269.63 3016.06 3202. 06 3754.40 3756.78 3754.43 -16.67 -3754.40 1.72 5853119.61 583968.66 N 70.00866164 W 149.32944407 5504.72 72.74 271.36 3044.10 3230. 10 3844.69 3847.07 3844.72 -15.89 -3844.69 1.75 5853119.35 583878.38 N 70.00866365 W 149.33016503 5598.66 72.66 270.06 3072.03 3258. 03 3934.37 3936.76 3934.39 -14.78 -3934.37 1.32 5853119.44 583788.70 N 70.00866656 W 149.33088112 5692.00 72.60 269.96 3099.90 3285. 90 4023.45 4025.85 4023.48 -14.76 -4023.45 0.12 5853118.43 583699.63 N 70.00866648 W 149.33159244 5787.15 72.69 268.81 3128.28 3314. 28 4114.26 4116.67 4114.29 -15.74 -4114.26 1.16 5853116.41 583608.84 N 70.00866368 W 149.33231755 SurveyEditor Ver SP 2.1 Bld( doc40x_100) New Slot\Maggiore #1\Maggiore #1\Maggiore #1 current Generated 2/28/2007 1:45 PM Page 2 of 3 Measured Vertical Along Hole Comments Depth Inclination Azimuth Sub-Sea ND ND Section Departure Closure NS EW DLS Northing Easting Latitude longitude ft de de ft ft ft ft ft k ft de 1100 ft ftUS ftUS 5882.34 /Z. /5 26 /.24 3156.56 3342.56 4"105.10 420 /.56 4205.14 -18.87 -4205.10 1.5$ 585311223 58351$.06 N 70.00$65499 W 149.33304284 5977.39 73.46 268.38 3184.18 3370.18 4295.98 4298.51 4296.03 -22.34 -4295.98 1.37 5853107.72 583427.23 N 70.00864536 W 149.33376848 6071.84 72.87 269.69 3211.54 3397.54 4386.36 4388.91 4386.43 -23.87 -4386.36 1.47 5853105.15 5$3336.88 N 70.00864106 W 149.33449020 6165.89 72.76 270.09 3239.33 3425.33 4476.21 4478.76 4476.28 -24.04 -4476.21 0.42 5853103.95 583247.05 N 70.00864044 W 149.33520764 6259.85 72.65 268.61 3267.26 3453.26 4565.92 4568.47 4565.99 -25.06 -4565.92 1.51 5853101.90 5$3157.37 N 70.00863752 W 149.33592390 6352.65 72.85 268.84 3294.78 3480.78 4654.52 4657.09 4654.60 -27.03 -4654.52 0.32 5853098.91 583068.80 N 70.00863199 W 149.33663137 6445.54 72.75 269.56 3322.25 3508.25 4743.25 4745.83 4743.33 -28.27 -4743.25 0.75 5853096.65 582980.10 N 70.00862845 W 149.33733983 6536.67 72.85 271.16 3349.20 3535.20 4830.30 4832.88 4830.38 -27.72 -4830.30 1.68 5853096.20 582893.06 N 70.00862980 W 149.33803491 6631.86 73.30 272.58 3376.91 3562.91 4921.31 4923.95 4921.37 -24.75 -4921.31 1.50 5853098.13 582802.03 N 70.00863776 W 149.33876167 6725.14 72.73 272.70 3404.16 3590.16 5010.43 5013.16 5010.47 -20.64 -5010.43 0.62 5853101.21 582712.88 N 70.00864883 W 149.339473 6821.17 73.01 272.02 3432.44 3618.44 5102.12 5104.93 5102.15 -16.86 -5102.12 0.74 5853103.94 582621.16 N 70.00865899 W 149.34020 6915.42 73.25 271.13 3459.80 3645.80 5192.28 5195.13 5192.30 -14.38 -5192.28 0.94 5853105.38 582530.98 N 70.00866559 W 149.34092535 7026.06 74.27 271.60 3490.74 3676.74 5298.47 5301.35 5298.49 -11.85 -5298.47 1.01 5853106.69 582424.78 N 70.00867231 W 149.34177330 7122.85 74.29 272.58 3516.96 3702.96 5391.58 5394.52 5391.59 -8.45 -5391.58 0.97 5853109.02 582331.65 N 70.00868141 W 149.34251676 7218.11 73.40 271.46 3543.47 3729.47 5483.02 5486.02 5483.02 -5.22 -5483.02 1.47 5853111.19 582240.19 N 70.00869005 W 149.34324690 7313.12 73.03 269.06 3570.91 3756.91 5573.97 5576.98 5573.97 -4.81 -5573.97 2.45 5853110.56 582149.24 N 70.00869100 W 149.34397315 7409.58 73.16 268.32 3598.96 3784.96 5666.24 5669.27 5666.24 -6.92 -5666.24 0.75 5853107.39 582057.01 N 70.00868505 W 149.34470988 7505.00 73.32 268.67 3626.47 3812.47 5757.57 5760.64 5757.58 -9.32 -5757.57 0.39 5853103.95 581965.72 N 70.00867831 W 149.34543916 7600.36 73.33 268.95 3653.84 3839.84 5848.90 5851.99 5848.91 -11.22 -5848.90 0.28 5853101.00 581874.43 N 70.00867294 W 149.34616$40 7696.93 72.70 269.89 3682.05 3868.05 5941.25 5944.34 5941.27 -12.15 -5941.25 1.14 5853099.00 581782.10 N 70.00867019 W 149.34690581 7791.70 73.06 269.30 3709.95 3895.95 6031.82 6034.91 6031.84 -12.79 -6031.82 0.71 5853097.32 581691.56 N 70.00866824 W 149.34762898 7884.69 72.80 270.62 3737.24 3923.24 6120.71 6123.81 6120.73 -12.86 -6120.71 1.39 5853096.24 581602.68 N 70.00866788 W 149.34833876 7980.67 72.49 270.46 3765.87 3951.87 6212.32 6215.42 6212.33 -11.99 -6212.32 0.36 5853096.05 581511.08 N 70.00867003 W 149.34907022 8076.34 72.63 270.74 3794.55 3980.55 6303.59 6306.69 6303.60 -11.04 -6303.59 0.32 5853095.96 581419.81 N 70.00867244 W 149.34979898 8170.13 72.71 272.66 3822.49 4008.49 6393.07 6396.22 6393.08 -8.38 -6393.07 1.96 5853097.58 581330.31 N 70.00867950 W 149.35051355 8266.31 72.68 271.64 3851.10 4037.10 6484.83 6488.05 6484.84 -4.94 -6484.83 1.01 5853099.97 581238.53 N 70.00868870 W 149.35124626 8361.57 72.45 271.07 3879.64 4065.64 6575.69 6578.93 6575.69 -2.79 -6575.69 0.62 5853101.08 581147.66 N 70.00869436 W 149.35197177 8456.69 72.64 270.20 3908.17 4094.17 6666.43 6669.67 6666.43 -1.78 -6666.43 0.90 5853101.04 581056.93 N 70.00869689 W 149.3526 8553.70 72.62 269.40 3937.13 4123.13 6759.01 6762.26 6759.01 -2.10 -6759.01 0.79 5853099.65 580964.36 9 N 70.00869578 W 149.35343 8647.30 72.59 268.56 3965.12 4151.12 6848.31 6851.57 6848.31 -3.69 -6848.31 0.86 5853097.04 580875.09 N 70.00869122 W 149.35414861 8741.36 72.65 268.69 3993.21 4179.21 6938.05 6941.34 6938.06 -5.85 -6938.05 0.15 5853093.85 580785.39 N 70.00868511 W 149.35486515 8834.64 72.74 269.17 4020.96 4206.96 7027.10 7030.40 7027.10 -7.51 -7027.10 0.50 5853091.17 580696.38 N 70.00868035 W 149.35557612 8928.12 72.72 270.72 4048.71 4234.71 7116.36 7119.66 7116.36 -7.60 -7116.36 1.58 5853090.06 580607.13 N 70.00867989 W 149.35628887 9024.09 72.68 270.05 4077.25 4263.25 7207.98 7211.29 7207.99 -6.98 -7207.98 0.67 5853089.62 580515.51 N 70.00868134 W 149.35702049 9118.50 73.01 270.61 4105.10 4291.10 7298.19 7301.50 7298.19 -6.46 -7298.19 0.67 5853089.10 580425.32 N 70.00868252 W 149.35774079 9213.96 72.95 269.29 4133.04 4319.04 7389.47 7392.78 7389.47 -6.54 -7389.47 1.32 5853087.98 580334.05 N 70.00868207 W 149.35846962 9307.53 72.54 269.50 4160.80 4346.80 7478.82 7482.14 7478.83 -7.48 -7478.82 0.49 5853086.01 580244.73 N 70.00867925 W 149.35918309 9400.55 72.91 271.56 4188.42 4374.42 7567.64 7570.96 7567.64 -6.66 -7567.64 2.15 5853085.81 580155.92 N 70.00868126 W 149.35989226 Last MWD Standard 9432.15 73.03 270.99 4197.68 4383.68 7597.84 7601.18 7597.85 -5.99 -7597.84 1.77 5853086.13 580125.71 N 70.00868301 W 149.36013346 TD (Projected) ~ 9500.00 73.03 270.99 4217.48 4403.48 7662.73 7666.07 7662.73 -4.87 -7662.73 0.00 5853086.51 580060.82 N 70.00868590 W 149.36065158 SurveyEditor Ver SP 2.1 Bld(doc40x_100) New Slot\Maggiore #1\Maggiore #1\Maggiore #1 current Generated 2/28/2007 1:45 PM Page 3 of 3 • Maggiore #1 Final P a A wjp 02/27/07 C~ 1 L L. I~JVV 1Y1L~ T~TVY 1 Y L • OPERATIONS SUMMARY Eni Petroleum Maggiore #1 February 10, 2007 Separate rig modules and remove berms at Rock Flour #3 location. Move cold start generator, pipe shed and rig subbase to Maggiore #1 pad. February 11, 2007 Continue moving in rig. Spot subbase over well, begin assembling rig modules. February 12, 2007 Finish assembling rig. Move in camp. Install wellhead, diverter spool and BOPE. February 13, 2007 Finish N/LT diverter and BOPE. Function test same. P/U and rack back drill pipe. February 14, 2007 MW 8.7 ppg Vis 250 sec P/LT and rack back drill pipe and BHA while testing DC electrical connections between rig modules, filling mud. system and pressure testing lines. February 15, 2007 MW 8.7 ppg Vis 250 sec M/U and orient BHA. Spud well, drill 12-1/4" hole from 113' MD to 260' MD. POH to 85', P/U DC's and stabilizer. RIH and drill from 260' MD to 902' MD. POH, reset PDM to 1.5° bend, install nuclear source in LWD tools, RIH. Drill from 902'. MD to 1,206' MD. February 16, 2007 MW 9.2 ppg Vis 120 sec Directionally drill 12-1/4" hole from 1,206' MD to 2,405' MD. CBU, short trip to 923', then back to bottom. Drill from 2,405' to 2,415'. CBU and POH. L/D BHA. February 17, 2007 MW 9.2 ppg Vis 58 sec L/D BHA, clear floor. R/U to run casing, run 58 jts of 9-5/8", 40#, L-80, BTC casing. R/U to cement. Test lines and pump 400 bbls Arcticset Lite lead cement at 10.7 ppg followed by 42 bbls Arcticset I cement at 15.7 ppg. Displaced with rnud, bumped plug w/ 1,050 psi. Check floats -okay. R/D landing joint, install and test packoff in wellhead. N/D diverter line. February 18, 2007 MW 9.2 ppg Vis 62 sec N/D diverter line and knife valve. Test BOPE. M/U 8-1/2" rotary steerable BHA and RIH to 2/148'. Drill out to float collar. Pressure test 9-5/8" casing to 3,000 psi for 30 minutes -good test. February 19, 2007 MW 9.4 ppg Vis 60 sec • Drill out shoe track and 20' of new hole. Perform LOT to 13.0 ppg EMW. Clean pits and displace hole and surface system to oil-base mud. February 20, 2007 MW 9.4 ppg Vis 55 sec Directionally drill 8-1/2" hole from 2,435' to 3,481' MD. Make short trip to shoe. Drill from 3,481' to 3,577' MD. Discovered discrepancy in pipe tally. CBU, POH to BHA. Repair TDS and thaw frozen cellar piping. February 21, 2007 MW 9.4 ppg Vis 55 sec Finish TDS repairs, RIH. Run MAD pass and correct pipe tally. Drill from 3,577' to 4,626' MD. February 22, 2007 MW 9.5 ppg Vis 90 sec Directionally dri118-1/2" hole from 4,626' to 6,105' MD. February 23, 2007 MW 9.4 ppg Vis 70 sec Directionally dri118-1/2" hole from 6,205' MD to 6,978' MD. CBU and POH. February 24, 2007 MW 9.4 ppg Vis 80 sec POH and L/D BHA. Test BOPE to 250 / 3,500 psi. M/U new 8-1/2" rotary steerable BHA and RIH. February 25, 2007 MW 9.4 ppg Vis 70 sec Finish RIH and prepare to drill ahead. Wash pipe leaking at top drive. POH into casing shoe and repair wash pipe. RIH, drill from 6,978' MD to 7,458' MD. February 26, 2007 MW 9.4 ppg Vis 70 sec Directionally drill 8-1/2" hole from 7,458' MD to 8,993' MD. February 27, 2007 MW 9.4 ppg Vis 77 sec Drill to 9,500' MD TD. CBU, short trip to 6,900' then back to bottom. POH, L/D BHA. ~' February 28, 2007 MW 9.4 ppg Vis 77 sec M/iJ electric logging tools on DP and RIH. Log from 7,833' MD to 7,200' MD. Communication to tools failed. POH. March 1, 2007 MW 9.4 ppg Vis 70 sec Finish POH. Replace wet connect latch. RIH w/ logging tools on DP. Log from 7,200' MD to 6,333' MD. Pull wireline to repair wet connect failure. Pump wireline to reconnect. Log from 8,706' MD to 8,454' MD. March 2, 2007 MW 9.4 ppg Vis 70 sec Conduct electric logging operations with MREX tool on drill pipe. POH, L/D MREX, M/U RCI tools on drill pipe. RIH. Tie in first sampling point. March 3, 2007 MW 9.4 ppg Vis 70 sec Conduct logging and sampling operations with RCI on drill pipe. March 4, 2007 MW 9.4 ppg Vis 70 sec Finish logging and sampling operations with RCI on drill pipe. POH, L/D RCI tools. Test BOPE to 250/3500 psi. RIH w/ drill pipe for VSP logging. March 5, 2007 MW 9.5 ppg Vis 70 sec Continue RIH. Pump down VSP receiver. Conduct VSP logging operations with downhole receiver and seismic vibrator truck at surface. POH w/ receiver on wireline. March 6, 2007 MW 9.5 ppg Vis 70 sec Finish POH. M/LT SWC guns on drill pipe and RIH. Pump wet connect on wireline. Stopped and jammed before reaching tools. Pull out of rope socket and POH with drill pipe (wet). March 7, 2007 MW 9.9 ppg Vis 70 sec Finish POH (wet) with drill pipe. Found wet connector jammed in too-small crossover. Replace with correct crossover and RIH. Conduct sidewall coring operations in selected intervals. POH. March 8, 2007 MW 9.7 ppg Vis 69 sec Finish POH. Lay down SWC guns and R/D wireline. RIH with drill pipe and POH L/D drill pipe. Pull wear bushing. March 9, 2007 M/U 9-5/8" cement retainer. RIH and set at 2,316'. Shear off retainer but remain stung in. Mix and pump 25 bbls Class G cement, squeezing 20 bbls below the retainer and placing the remaining 5 bbls on top. Pull 3 stands, CBU and pressure test casing to 1,000 psi. POH, L/D excess DP. M/iJ 9-5/8" bridge plug and set at 250'. Mix and pump 19 bbls Arcticset cement to surface. L/D remaining DP, blow down all surface lines and commence cleaning rig floor and pits. March 10, 2007 Clean pits and prepare for separation of rig modules. Cut off wellhead. Rig released at 24:00 hrs, March 10. FINAL REPORT. March 15, 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. ~" „~d ~_ - ~. 4 ~`. ~ ~. ~6 ~ ~ _ _ ~~' _ _ ~~ ~~ - - ~,;` ~~ ~- ~ +~. >~~ TM =` _ '~~ " ~~ ~. ~ ~~ ~ ~ ~ ~ ' ~ ~~ ~ ~ ~~ r ~~ ~ ~ "P ' .. ~~ - ~. m + d ~I~ . ~'~ ~, : ~ ~r cr ' 7C' ~ ~. ~ t r~ ~' ~' ~g ^p'aiW A~I~ ~~~ * .~ *~~ ,yy~~-p"Bl"RV ~ "` "p~~ .:xo ~y.~. YAUy ~ ~R '7 ".~„ t .. A t~Mr ~ 1 ~€ ~. w ry .~ ~, ,~ ~~ w ~~ ,~ s a, ~,~ ti Jy yg S ~~u , G w w ` r.F. ~ ~~~. ~ ~ in ~ ,d ~ ~ ~ 1..u ~ ~ ^ -, r a I r rte. V. y l- i~ 0^ ,p' ( IG 4^ 3: 5~ m ~ £ ~ ~ ~° ,~ ~ ~> , m rr JI iit., ~. b i. ' . ~k,~ ~ ~ ~ bhp I I~Muw ~~ d ei , °-4 ~~ pig, ;°y~r ~~ ~ ~~ iii a j il~ow e I N~ 1, w iP ~8 i ~~ k ~ 3~ ~i ~' ,M, tik ~ ~ T F ~dl ~y ~ t ~4"i `~ ~ ' q~ ~~ y,. ~*~M1 ~+. y. `' ~=x ~~_ ~ ~t ~:*~ ~~ r ~- $ , % ',_ ~ _ ~- ~_ ~. ' 'rte ~~ ~ - ~ -°. ~' - ~~~ _ ~ ~~ ~~~, ~ r ~-~, ~~~~~~ ~ ~~ ~ ~ a. ~ ._ ~ ~ e ~~ s~ ~<.n..~ '~. 'e :- ww ~ ~ _e~ ~ . t~6 ~~ ~ ~ ~ ~ ,~ ' ~ ... .,,4+s~~- . ~=r~.ld~„ r ~ ~IJe, X94 : ~K '4~~ i ` '~r^*'"~ 7"~~~ ` - 4 I!" .,r ~ ~~ r ~ ~%,»~""'~~ ~ 7 ,fir •~ ~ ~ ~ a i ,. e n w„ ~ "~' a~ ~ p N, rt„~ ~ ~ dH d '' x ~ 1 it p r INw ~ ~ u~i~ a~ ~'? w;;„,a~„ " '" ~ y `9L ;,`,.~~ 'N" °~w t" i .. .. '~s `1~, a ~ , + ~' 2 sad ~ ~"', +i~ ~ . m *auIX~ .ffiewf~z~t, e wa `a4 J. y~J a ,~ ~ r~ ~W~ , ~ ~ gin.. ~" ~ r~*9" ~~ ~ +~'' ~ aM ~~ ~~ ~~b~ i. ... of t ~` ~Y ~ '~ f,~ K ~ ~ I ~~ M9 " ~ "wx ~ Aryl ~ x.~ N m x ~- I Iu~ p ~ e ~ .. ++F h" ~ ~y' ~ '~' a ~~ , ;. ':: ;; • NIEMORANDIJIVI State ®f /~laska Alaska Oil and Gas Conservation Commission TO: Jim Regg, '2~~Ie~ ~~~I~~ DATE: March 15, 2007 P. I. Supervisor t FROM: Jeff Jones SUBJECT: Surface Abandonment Petroleum Inspector Maggiore #1 ENI PTD #207-006 March 15, 2007: I traveled to ENI's Maggiore #1 well location to inspect the casing cut off and surface abandonment of this well. I verified that all casing strings had been cut off at least 5 feet below original grade and all were filled with cement. A 20" diameter, 1"thick marker plate was seal welded to the outermost conductor with the required information bead welded to it. Summary: I inspected the surface cement plug, casing cut off depth, and the P&A marker plate on Maggiore #1 well and verified that all were in compliance with AOGCC regulation 20 AAC 25.120. Attachments: Photos (2) P-A ENI Maggiore #1 3-15-07 P-A ENI Maggiore.1 #1 3-15-07 X Unclassified Classified Unclassified with Document Removed .. • ~lagg~o~e #~ ~E~i9 ~at~o~e~rn'~ surface Abandonment arros~ectcor» ~'hotos from Jeff Jones, A®GCC March 15, 2007 Casing cut-off; marker plate installation Marker Plate ~~ March 13, 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: Maggiore #1(PTD # 207-006) Dear Mr. Norman, ~'~/ ~ 4~~ MAt2 ~ 4?.~Q7 Alaska Oil ~ Gas Cores, Commission Anchorage This is a report of Eni Petroleum's well operations on Maggiore #1 for the period March 9 through March 10, 2007, inclusive. This is the final report for this well. March 9, 2007 M/LT 9-5/8" cement retainer. RIH and set at 2,316'. Shear off retainer but remain stung in. Mix and pump 25 bbls Class G cement, squeezing 20 bbls below the retainer and placing the remaining 5 bbls on top. Pu113 stands, CBU and pressure test casing to 1,000 psi. POH, L/D excess DP. M/LT 9-5/8" bridge plug and set at 250'. Mix and pump 19 bbls Arcticset cement to surface. L/D remaining DP, blow down all surface lines and commence cleaning rig floor and pits. March 10, 2007 0 Clean pits and prepare for separation of rig modules. Cut off wellhead. Rig released at 24:00 hrs, March 10. FINAL REPORT. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ENI PETR LEUM r•~ ~, f;.. Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. cc: David Dougall -Eni Petroleum ~CI ~/ ~~ MAR 1 3 2007 ~tasica Oil ~ Cas Cans. Commission Anchorage March 9, 2007 Mr. John Norman, Chair Alaska Oil and Gas. Conservation Commission 333 West 7`h Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Eni Petroleum: Maggiore #1(PTD # 207-006) Dear Mr. Norman, This is a report of Eni Petroleum's well operations on Maggiore #1 for the period March 2 through March 8, 2007, inclusive. March 2, 2007 Conduct electric logging operations with MREX tool on drill pipe. POH, L/D MREX, M/LT RCI tools on drill pipe. RIH. Tie in first sampling point. March 3, 2007 Conduct logging and sampling operations with RCI on drill pipe. March 4, 2007 Finish logging and sampling operations with RCI on drill pipe. POH, L/D RCI tools. Test BOPE to 250/3500 psi. RIH w/ drill pipe for VSP logging. March 5, 2007 Continue RIH. Pump down VSP receiver. Conduct VSP logging operations with downhole receiver and seismic vibrator truck at surface. POH w/ receiver on wireline. March 6, 2007 Finish POH. M/LT SWC guns on drill pipe and RIH. Pump wet connect on wireline. Stopped and jammed before reaching tools. Pull out of rope socket and POH with drill pipe (wet). March 7, 2007 Finish POH (wet) with drill pipe. Found wet connector jammed in too-small crossover. Replace with correct crossover and RIH. Conduct sidewall coring operations in selected intervals. POH. ~ ~ Mr. John Norman Page 2 March 8, 2007 Finish POH. Lay down SWC guns and R/D wireline. RIH with drill pipe and POH L/D drill pipe. Pull wear bushing. 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 • S,4R,4~i P.4LlN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 David Dougall HSE Manager ENI Petroleum Inc. 1201 Louisiana St., Suite 3500 Houston, TX 77002 Re: Exploration, Maggiore # 1 Sundry Number: 307-085 Dear Mr. Dougall: 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 ~ day of March, 2007 Encl. Sincerely, I~ECEIVE~ STAI"E r~F ALASKA • ~ ~~Ce MAR 0 6 2007 ALASKA ®IL AND GAS CONSERVATlQN ~C(7MMlSSlC1N APPLICATlC}N F4R St~NDRY APPRd?VA1~~41aska Oil & Gas Cons. Commission 2a AAC ~~o2ge~ Anchors e 1.7ype of Request: Abandon[„ Suspend ^ Operational shutdown ® Perforate ® Waiver® Other® Alter casing ^ Repair well ^ Plug Perforataans ^ Stamulate ^ Tame Extension ^ Change aPPra`Jed program^ Pull Tubing^ Perforate New Pooi ^ Re-enter Suspended Well ^ 2.Operator Name: 4. Current WeA Class: 5. Permit to Orall Number: /~ ENl Petroleum Inc. Dev~opment ® Exploratory ZD7-Dad. / 3. Address: Strakigraphic ® Serelce ® 5. API Numt~er: i2Di Lousiana St., Suit 3500, Houston, TX, 77042 50-029-23342-00 '~ 7. If perfc~ating, el~est approach an pool{s} coed by this operation to nearest 8. Welt Name and Number: property lane where ownership ~ aandownership changes: Spacang Exception Required? Yes ^ No [~ Maggiore f11 9. Properly Designation: 14. KB Elevaliort {ft}: 11. Fa~dlPact#{s}: ADL 390660 32.25" EXplorato 12' PRESENT WELL GONDf1"1C?N StNiiIMA12Y Total Depth MD {ft}: Total Depth TVD {ft}: .Effective Depth MD {fk}: Effective Depth TVd {ft}: Plugs {measured}: Junk {nured}: 9+"~" 4,4f14' 9,500` 4,'104' None None Casing Length Sfrze MD TYA Burst Collapse Structural Conductor 84' 13-318" iii' 113' Surface 2,368` 9-5f8" 2,401' 2,006' 5,750 psi 3,090 psi Intermediate Praiuc~;on Liner Perforataorr Depth MD {ft}: Perforatiat Depth TVD {ft}: Tubing Size: Tubing Grade: Tubing MD {ft}• rtla Na nta n1a n/a Packers and SSSV Type: n1a Packers and SSSV MD {ft}: nAa 13. Attachments: Description Summary of Proposal ® 14. W ell Class otter propc~ed vu~xk: Det~l~ operations Program ^ BoP Sk~ct, ^ Explarat~r ~ Detrelopment ^ see i5. Esfimaied Date far 3/2/2407 16, Weil Status after proposed work: Commencing operations: oil ^ Gas ^ Plugged ^ Abandoned 17. Verbal Approval: Date: WAG p GINJ p W lNJ ^ W DSPL ^ Commission Representative: 18. I hereby CerkafY that the foregoing as true and cared to the best of my knave. Contact Bill Penr~e 258-3446 Printed Name David Dougali Title HSE Ma Signatun3 ~ Phone wager Date ~.., .~~.•.~ ~ ~` 713-393-6122 ~~" ~ ".~ COMMISSK]N USE pNLY Conditions of approval: Notify Cammissial so that a represetttatave may witness Sundry Number: 3 0 D Plug integrity BOP Test ® ARechan~cal integrity Test © Location Clearance other: ~o~~~v.S~Ec~t~~-© ~~_~r~~- ~t~ ~~~s c-r~c~Sl~4~~~~r'C~~~- e ~ Subsequent Form Required: y`~ ~ ~ LIAR ~ f$ 200? APPROVED BY Approves by: MISSIONER TEiE COMMISSION Date: ~ ~~~ Fa'm 1f1-443 Revised 06/2 Submit in D licake ~D~~` " ~~ • • ~El.~E~ V ED Eni March 6, 2007 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application to Plug and Abandon Eni Petroleum: Maggiore #1(PTD # 207-006) Dear Mr. Norman, MAR 4 6 2007 Alaska Oil & Gas Cons. Commission Anchorage Eni Petroleum proposes to plug and abandon its Maggiore #1 well and release the drilling rig The wireline logs from this well have been reviewed with your staff for their concurrence that there are no significant hydrocarbon-bearing intervals in the well that require open- hole cement plugs. y~ ~ 7N~31`..~,~ The P&A of Maggiore #1 will be accomplished using two 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 PET OLEUM ~` ~ . ..,~. Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. cc: David Dougall -Eni Petroleum • Maggiore #1 ~~"~ Proposed P a A W~p o2iz~io~ • Eni Petroleum Maggiore #1 • Plug and Abandonment Procedure 1. RIH with all drill pipe out of derrick except for 2,400. 2. POOH, laying down all drill pipe except for the 2,400' left standing in the de ick. t\o~:~~'~~Sp~c~r-~~ c~p~or~-v~~~°-t vs`~`c.E~~ 3. M/LJ a 9-5/8 cement retainer on DP and RIH using DP out of derrick. Set ~c~.c ~c ~._S~c~i~ retainer in casing at 2,325'. Un-sting from retainer. 4. Plug #1(9-5/8" Casing Shoe): Mix and pump 22 bbls of cemJJent slurry for a /~,~ -}~y,/J casing shoe plug extending from 2,325' to 2,501' mixed as follows: !~ '' JJ 124 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 18 bbls cement through it. Un-sting from retainer and dump remaining 4 bbls cement on top of retainer. 5. Pump 1-2 bbls of water behind. Pull up to 2,200' and circulate out cement above that depth. POH, laying down all but 200' of drill pipe in preparation for rig move. 6. Pressure test casing and cement plug to 1,000 psi for ten minutes. 7. P/LJ a 9-5/8" drillable bridge plug on DP and RIH. Set the bridge plug at 250' RKB. ~~~~ vo 1,~~- ~~~~ b ~~ 8. Plug #2 (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. 9. 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. 10. N/D BOPE and cut off wellhead. Release rig. 11. After rig has demobed from location, use a backhoe to dig around the top of the well to seven feet below tundra level. • 12. Cut off all casing strings at least five feet below tundra level and remove. 13. 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. AOGCC representative to witness condition of the casing stubs before installation of the marker plate and the installation of the marker plate. 14. Fill the excavation over the abandoned well,. leaving a soil mound to settle after the soil thaws. 15. Clean the location thoroughly so that summertime cleanup will be minimal. Re: FW:Hydrocarbon Intervals in Maggiore #1 • . Subject: Re: FW: Hydrocarbon Intervals in Maggiore #1 From: Thomas Maunder <toin_maunder@admin.state.ak.us> Date: Mon, OS Mar 2007 12:25:37 -0900 To: Bill Penrose <bi11(a~fair~~caihcr.com> CC: Stephen Davies ~~-ste~~c day°i« ~~a~lmin.state.ak.us-- Bill, Based on the determination of no significant hydrocarbons encountered, there is no requirement to set open hole plugs. A plug at the surface casing shoe set in accord with 20 AAC 25.112 (b) (1) or (2) is required as is the usual surface plug. If a balanced plug is set according to (b)(1), it will need to be tagged. If a retainer is used according to (b)(2), witnessing setting the retainer with a well bore pressure test following cementing will satisfy the plug verification requirement. We look forward to receiving the sundry application for the planned work. Call or message with any questions. Tom Maunder, PE AOGCC Stephen Davies wrote, On 3/5/2007 12:08 PM: Gentlemen: I concur. No significant hydrocarbon-bearing intervals were encountered by Maggiore 1. Steve Davies AOGCC 907-793-1224 Bill Penrose wrote: ', Steve and Tom, See Eni's picks (below) re indications of hydrocarbons. I Regards, ', //Bill Penrose// ', Vice President / Drilling Manager ', Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 *From:* cilbert.wopara^enipetroleum.com [tnailto:gi~bert..w.~opara,zenipetroleum.com] *Sent:* Monday, March 05, 2007 10:56 AM *To:* Bill Penrose *CC:* bryc- Campy:,eli~?E'rilL~etrO1P_i~:R1 t.l; C~"larleS, .iSS`.~l~.i?e'ipetrCilel7!":t.COm; ', C.aV .Icl~.:.11E'5.2.°P _petrOleL1TT1.C'OCP, ~ .~_ t`>~ 1<i~.J .~.eT1' ~E'tr^1':.LTTl. ~,TT'; -- '. '. ~.li'1 47vOtl" ~Gilpetrt'~ r1T1.~:.Oitli ;~":'.;3`tt-'C' lti t i~%f'I p^*' 'OiE:ltTT`.COmi '., 'rOi {.E.C ;g,e"11~-;Pt..v'r t:t~T'l.C"C7TTii iat.:Y'Lr ~...CdO :"l.~Fr '+E?Tt'_ )P.' r_ ~_~'.il'T`.:.`,C~"T;i ,. t ', ednne.p"''::.5~21C?~enlr,•~t.rOieilm. T~!1 .~.~ *Subject:* Re Hydrocarbon Intervals in Maggiore #1 j The only indication of hydrocarbon seen on the MREX log is from 7,874' MD to ', 7,900' MD with viscosity of about 1,190 Cp. We had 2 shows: first from 2,833' to 1 of 2 3/6/2007 2:28 PM Re: FW: Hydrocarbon Intervals in Maggiore #I ~~ i 2,843' MD and the second from 5,042' to 5,052' MD. Both had 20 units and 40 units of gas respectively. No significant hydrocarbon was encountered! Gilbert Wopara Operations Geologist Eni Petroleum Co. Inc. 1201 Louisiana St; Suite 3500 Houston, TX 77002 _o emai ~,,~~lbe-r.t.wT:ara`.~n~_~tr=~~~~~~;_m.~,,... * "Bill Penrose":bill^fairweat ^:.:_ . c, ~>* 03/05/2007 01:24 PM To <chaY_1e =russei?enipetrcleu°r. cOm>, <::~ii~;ert ._..~oparaz_enipe~~roleum. c:om> cc rOC`k.f.L OU.I iae l'ipetrOleum.COtn>, <:v"y~'P.i".aTpbell.;~e?71_petrO~e.. Utn.•~`Om>, <'::~.c- i,~.Tit ~:' ~=E~1"..F~F_'t rO~.euT:. C~`7'C> <T`ic3.t tE'O.'7.Z E'.r~l x°..71~.~E't Y'C ).~e17.Fl1 C.OTi>, - __._. ... ..._._'- -_..J.. ...... ...... .___.-- ?Tt.rVOOTE'T.:!:E:S~.~pE'_..r'OIE:'.l.1CTt.i.!:T`;>, ~.jE'_t~.t)Y":11:.OI'i~FI__pP~I.~O~et.~m...C.n~> Subject Hydrocarbon Intervals in Maggiore #1 Charles and Gilbert, In order to approve our P&A plan for Maggiore #1, the Alaska Oil & Gas Conservation Commission (AOGCC) needs for us to supply the depths in open hole portion of the well where hydrocarbons are indicated on the logs. Can you please supply these? Thanks and regards, /Bill Penrose/ Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 2 of 2 3!6/2007 2:28 PM IKE: FW: Hydrocarbon Intervals in Maggiore #1 • Subject: RE: FW: Hydrocarbon Intervals in Maggiore #1 From: Bill Penrose <bill@fairweather.com> Date: Mon, OS Mar 2007 14:08:42 -0900 To: Stephen Davies slcve cla~tes c~~admin.state.ak.us> C'C: Thomas Maun~icr ~~~tum maunder~a;admin.stat~.~il~.tis= ~~j~-~~ Thanks, guys. I'II get a P&A Sundry to you late today or early tomorrow that calls for a plug at the surface casing shoe and one at the surface. Regards, Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 rom: Stephen Davies [mailto:steve_davies@admin.state.ak.us Se t: Monday, March 05, 2007 12:09 PM To: Penrose Cc: Tho s Maunder Subject: R • FW: Hydrocarbon Intervals in Maggiore #1 Gentlemen: I concur. No significant drocarbon-bearin .,intervals were encountered by Maggiore I . Steve Davies AOGCC 907-793-1224 Bill Penrose wrote: Steve and Tam, See Eni's picks (below) re Regards, Bill Peny°ose Vice President / Dri ng Manager Fairweather E&P ervices, Inc. 2000 East 88th ve., Suite 200 Anchorage, AI ska 99507 907-25$-344 ons of hydrocarbons. From: ~ ert,wapara`aenipetroleum.com [_ailtogiBbert.wo~araC~er~ipetroleum.cQm] Sent: onday, March 05, 2007 10:56 AM To: ~ (Penrose Cc: _rycetcarr~pbeilC~enipetroleum.com• Charles.russellCc~enipetroleum_carn; davidmolesc~eni~etro~eum;com, 1e _,bruton@en%petraleu_com; jim.woomer~c~enipetroleum.com• matteo.rivettit~_~~enipetroleu:_com; __..ck,flourCaenipetroleu~racom; ~atrizio.c~t~ssenberg(aenipetrcrleum.corn; Jeanne,~rusal~Caen%~el:roleum~ccarn 1 of 2 3/6/2007 9:31 AM Re: FW: Hydrocarbon Intervals in Maggiore #I • . Subject: Re: FW: Hydrocarbon Intervals in Maggiore #1 From: Thomas Maunder <tom_maunder@adlnin.state.ak.us> Date: Mon, OS Mar 2007 12:25:37 -0900 To: Bill Pem-ose <bill@fai~~~ cather.coln C'(': St~pher~ L)~iv~i~~ ~~ste~ ~ davies@a~lmin.state.~~k.us> ~ Q ~ - ~ ~ Bill, Based on the determination of no significant hydrocarbons encountered, there is no requirement to set open hole plugs. A plug at the surface casing shoe set in accord with 20 AAC 25.112 (b) (1) or (2) is required as is the usual surface plug. If a balanced plug is set according to (b)(1), it will need to be tagged. If a retainer is used according to (b)(2), witnessing setting the retainer with a well bore pressure test following cementing will satisfy the plug verification requirement. We look forward to receiving the sundry application for the planned work. Call or message with any questions. Tom Maunder, PE AOGCC Stephen Davies wrote, On 3/5/2007 12:08 PM: Gentlemen: I concur. No significant hydrocarbon-bearing .intervals were encountered by Maggiore 1. I Steve Davies AOGCC 907-793-1224 Bill Penrose wrote: ', Steve and Tom, ', See Eni's picks (below) re indications of hydrocarbons. ', Regards, ', //Bill Penrose// Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 ', Anchorage, Alaska 99507 907-258-3446 *From:* gilbert.won~ara<-e~~ipetroleum.ccc?m [mailto::~i'~,;ert.vropara'~enipetroleum.com] *Sent:* Monday, March 05, 2007 10:56 AM *To:* Bill Penrose *Cc:* br~c-- camr~be~i:~ ni:etr`cleum om; char:Le;~.russell,~re~ipetroleum. nom. CIaV h.mod.eS.ie7.1p,.+::rOleLim.C)C)m; ~e~'f.,",)rts°.~C)"~~+?E?,1 »F-;.rcle:t~,i.:::CR":; j1P1 G~~Om a~'r11pCt~'t~_f?t:T"1. COIi1; mattcC?.'_"1V tt1:~i!~'I:I-p:''.tl~.~_etlm.Ci~m; ,.. rOC_ ilOi ~ai''11~;eG:''n'~t)t?l.CC7iCl; Tiatrll_<i.ijC7~ "1;C.'rqi-teXl)."~}P..';:rCl%.~lAiY'. ".C)€Ti; ---- rean~e.pru~~~k eniu t oie:im.ccrn *Subject:* Re: Hydrocarbon Intervals in Maggiore #1 The only indication of hydrocarbon seen on the MREX log is from 7,874' MD to ', 7,900' MD with viscosity of about 1,190 Cp. We had 2 shows: first from 2,833' to I of 2 3/6/2007 9:,2 AM Re: FW: Hydrocarbon Intervals in Maggiore #I 2,843' MD and the second from 5,042' to 5,052' MD. Both had 20 units and 40 units of gas respectively. No significant hydrocarbon was encountered! Gilbert wopara Operations Geologist Eni Petroleum Co. Inc. 1201 Louisiana St; Suite 3500 Houston, TX 77002 email. ~~ilb r'~ w, uara~ nioetroeum. m *"Bill Penrose" <h_11=?f~~irweah~r.~,om>>* 03/05/2007 01:24 PM To <charles.ru~.ey~.,._n~r•etrol un.co:r:.>, <~ _ rt.°•r ra:~er:ipe rc~eu?r:,.,~m:• cc <:_c7Gk,tiGUr'.a:'2P -?1"OiE:'1.1T.C0?":>, Win. `~z.: nyc r~~' ~~'`=_-----=-~----==a:~b l;:<:= ~1i~-tom -_eurl_c^~m==, ::~.aV7`La.ll;`.:.Lr',~taE[~ .e,~.1"'.IE);]'Ti C'Ciit'> <itlc~.t-f::E'C:).v'lV:'t `sc>r~=~`;etY'O~E_?1.7.TT~.C.,C).t>, • i :~~1. n..)O TE:~ ~?i~r_..j),:~~,.: ~..)~f:L. T:. :.'C:~?:i>, G1 E;.~.i_..~.;r.1~.....Ti.;i;~.r_.~~'.~~:._~.?_el.'.f T!. ~.. C.ItI. Subject Hydrocarbon Intervals in Maggiore #1 Charles and Gilbert, In order to approve our P&A plan for Maggiore #l, the Alaska Oil & Gas Conservation Commission (AOGCC) needs for us to supply the depths in open hole portion of the well where hydrocarbons are indicated on the logs. Can you please supply these? Thanks and regards, /Bill Penrose/ Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 2 of 2 3/6/2007 9:32 AM • ~~~EB V ~~ MAR Q~~007 March 2, 2007 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7t1i Ave., Suite 100 Anchorage, Alaska 99501 Alaska Oii ~ Gas Dons. Corrarasaion Anchorage RE: Weekly Report of Operations Eni Petroleum: Maggiore #1 (PTD # 207-006) Dear Mr. Norman, This is a report of Eni Petroleum's well operations on Maggiore #1 for the period February 23 through March 1, 2007, inclusive. February 23, 2007 Directionally dri118-1/2" hole from 6,205' MD to 6,978' MD. CBU and POH. February 24, 2007 POH and L/D BHA. Test BOPE to 250 / 3,500 psi. M/U new 8-1/2" rotary steerable BHA and RIH. February 25, 2007 Finish RIH and prepare to drill ahead. Wash pipe leaking at top drive. POH into casing shoe and repair wash pipe. RIH, drill from 6,978' MD to 7,458' MD. February 26, 2007 Directionally dri118-1/2" hole from 7,458' MD to 8,993' MD. February 27, 2007 Drill to 9,500' MD TD. CBU, short trip to 6,900' then back to bottom. POH, L/D BHA. February 28, 2007 M/U electric logging tools on DP and RIH. Log from 7,833' MD to 7,200' MD. Communication to tools failed. POH. March 1, 2007 Finish POH. Replace wet connect latch. RIH w/ logging tools on DP. Log from 7,200' MD to 6,333' MD. Pull wireline to repair wet connect failure. Pump wireline to reconnect. Log from 8,706' MD to 8,454' MD. • Mr. John Norman Page 2 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 ~ , ~tt~ February 23, 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: Maggiore #1(PTD # 207-006) Dear Mr. Norman, r ~~ ~ ~ ~~~~ A~~ai~ ail ~ Gss ~nnx. Cotrxnission . Anchorage This is a report of Eni Petroleum's well operations on Maggiore #1 for the period February 16 through February 22, 2007, inclusive. February 16, 2007 Directionally drill 12-1/4" hole from 1,206' MD to 2,405' MD. CBU, short trip to 923', then back to bottom. Drill from 2,405.' to 2,415'. CBU and POH. L/D BHA. February 17, 2007 L/D BHA, clear floor. R/U to run casing, run 58 jts of 9-5/8", 40#, L-80, BTC casing. R/U to cement. Test lines and pump 400 bbls Arcticset Lite lead cement at 10.7 ppg followed by 42 bbls Arcticset I cement at 15.7 ppg. Displaced with mud, bumped plug w/ 1,050 psi. Check floats -okay. R/D landing joint, install and test packoff in wellhead. N/D diverter line. February 18, 2007 N/D diverter line and knife valve. Test BOPE. M/LT 8-1/2" rotary steerable BHA and RIH to 2/148'. Drill out to float collar. Pressure test 9-5/8" casing to 3,000 psi for 30 minutes -good test. February 19, 2007 Drill out shoe track and 20' of new hole. Perform LOT to 13.0 ppg EMW. Clean pits and displace hole and surface system to oil-base mud. February 20, 2007 Directionally drill 8-1/2" hole from 2,435' to 3,481' MD. Make short trip to shoe. Drill from 3,481' to 3,577' MD. Discovered discrepancy in pipe tally. CBU, POH to BHA. Repair TDS and thaw frozen cellar piping. Mr. John Norman Page 2 Februarv 21, 2007 Finish TDS repairs, RIH. 4,626' MD. Run MAD pass and correct pipe tally. Drill from 3,577' to Februarv 22, 2007 Directionally drill 8-1/2" hole from 4,626' to 6,105' MD. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ENI PET EUM ,.~'` ~_ Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. cc: David Dougall - Eni Petroleum ti 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: Maggiore #1 (PTD # 207-006) Dear Mr. Norman, ~~E'VG® FEB 2 1 2007 Alaska Oil & Gas Gong, Gorrxrrission Anchorage This is a report of Eni Petroleum's well operations on Maggiore #1 for the period February 10 through February 15, 2007, inclusive. February 10, 2007 Separate rig modules and remove berms at Rock Flour #3 location. Move cold start generator, pipe shed and rig subbase to Maggiore #1 pad. February 11, 2007 Continue moving in rig. Spot subbase over well, begin assembling rig modules. February 12, 2007 Finish assembling rig. Move in camp. Install wellhead, diverter spool and BOPE. February 13, 2007 Finish N/U diverter and BOPE. Function test same. P/U and rack back drill pipe. February 14, 2007 P/U and rack back drill pipe and BHA while testing DC electrical connections between rig modules, filling mud system and pressure testing lines. February 15, 2007 M/U and orient BHA. Spud well, drill 12-1/4" hole from 113' MD to 260' MD. POH to 85', P/iJ DC's and stabilizer. RIH and drill from 260' MD to 902' MD. POH, reset PDM to 1.5° bend, install nuclear source in LWD tools, RIH. Drill from 902' MD to 1,206' MD. • Mr. John Norman Page 2 If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, For ENI PETROLEUM 'C~ Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. cc: David Dougall - Eni Petroleum RE: Maggiore 1 Shallow Porosity Log Require Subject: RE: Maggiore 1 Shallow Porosity Log Re@rement From: Bill Penrose <bill@fairweather.com> Date: Tue, 13 Feb 2007 10:49:03 -0900 To: Stephen Davies <Steve_davies@admin.state.ak.us>, Tom Maunder <tom maunder@admin.state.ak.us> Steve and Tom, a ~~ We'll run a density neutron LWD tool while drilling the surface hole. 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: Stephen Davies [mailto:steve davies@admin.state.ak.us] Sent: Tuesday, February 13, 2007 8:27 AM To: Bill Penrose; Tom Maunder Subject: Maggiore 1 Shallow Porosity Log Requirement Bill, One of Commission's responsibilities is to ensure protection of potential freshwater aquifers. Accordingly, in new areas the Commission nearly always requires gamma ray, resistivity and porosity logs in the surface hole of exploratory wells to allow evaluation of the salinity distribution within the shallow geologic section. That is why an openhole sonic or density porosity log must be recorded in the surface hole of Maggiore 1. This requirement was stated in the approval letter for the original permit to drill dated January 22nd. I also hand-wrote the requirement on the formation evaluation page of the drilling program that was returned with that approval letter. Please don't think that Eni is being singled out for any reason. This same logging requirement has been included in permits issued to other operators. The only times that I do not require a surface hole porosity log is when a proposed well is located near other wells that have complete log suites below conductor pipe. Please let me know if you have any questions. Thanks, Steve Davies Sr. Petroleum Geologist AOGCC 907-793-1224 1 of 1 2/13/2007 10:51 AM r Mr. David Dougall HSE Manager ENI Petroleum 1201 Louisiana Street, Suite 3500 Houston, TX 77002 L~ sv~~,~x ~,~~l~-, G®vERr~®rt 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Exploratory Well, Maggiore # 1 ENI Petroleum Permit No: 207-006 Surface Location: 1157' FNL, 372' FEL, Sec. 35, T08N, T1 lE, UM Bottomhole Location: 1157' FNL, 730' FWL, Sec. 34, T08N, T11E, UM Dear Mr. Dougall: Enclosed is the approved application for permit to drill the above referenced exploratory well. The Commission previously issued Permit to Drill No. 207- 006 for well Maggiore # 1 on January 23, 2007. Anew permit to drill was necessary due to ENI's desire to change the planned bottomhole location by more than 500' laterally prior to spud. This permit supersedes and replaces Permit to Drill No. 207-006 issued on January 23, 2007. 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. Please note that in addition to the proposed logging program, an openhole sonic or density porosity log must be recorded in the surface hole to enable evaluation of water salinity in shallow aquifers at this remote location. Because this well is intentionally deviated, a wellbore directional survey must be acquired in conformance with 20 AAC 25.050(c). If formation testing is • 207-006 Maggiore # I ENI Petroleum planned, a Sundry Notice (Form 403) must be submitted in advance of the operations. 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. 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 February, 2007 cc: Department of Fish 8s Game, Habitat Section w/o encl. Department of Environmental Conservation w/ o encl. RE~EtVE® STATE OF ALASKA FEB 1 2 2007 AL`~iA OIL AND GAS GOPISERVATION COMM `EON (~- PERMIT T4 DRILL 2ct aAC a~ nns Alaska Oii & Gas Cons. Gommissipp` 1 a. Type of Work: Drill 0 Redriii ^ Re-em+Y ^ 1 b. Current Well Class; Exploratory 0 ! Stratigraphic Test ^ Service ^ Multiple Zone ^ Development Oil ^ Development Gas [~ Single Zone ® 1 c. Specify A well Ls proposed for: Coalbed Metinane ® Gas Hydrates ^ Shale Gas ^ 2.Operator Name: Eni Petroleum 5. Band: Blanket ^ Single Well ^ Bond No. RLB0008627 • 11. Well Name and Number: Maggiore #'t 3. Address: 1201 Louisiana St„ Suite 3500, Houston, TX 77002 6. Proposed Depth: MD: 1 i,47T' ~ TVD: 4.986' 12. Fie6dfPool(s}: 4a, Location of ~e1i ~Gove~nrr% r~l Section}: 35. z. / Z. p y Surface: ~ FEL, FNL, Sect, T08N, R11E, UM 7 7. Property Des~natian: ADL 390660 " Exploratory Top of Prod_ Active Horizon: / ~ _ ~ ~6 ~-t 2' ~ ~p (,Zp 992'1=EL, 1 FNL, Sec T0$N, R71E, UM 8. Land Use Permit: WA 13. Approxirnate Spud Date: 2114i'200T Total DeN~: / ~'~y. ~~~ ~ A. ~ ~-07 ~ 7~ ;S7'f` j~ 1168' FNL, SeC 34, TAN, R11E, WN g. Acres in Property: aT60 14. Distance to Ne~es#, Property: 5,768' / 4b. Location of Welt {State Base Plane Coordinates): Surface: x- 587722,4 y- 5853179.4 Zone- 4 10. KB Elevation (Heigh above GL}: 32.25 feet 15. Distance to Nearest Welt ~ 5 mNes . 16. Deviated wells: Kickoff deptia: 300 feet Maximum Hod Angle: T3 degrees 1T. Maximum Anticipated Pressures"in psig (see 20 AAC 25.035) Downhde: 2333 psf Surface: 1060 psi ' 18. Casing Program: Sparxfications T ~ - Settir~ Depth -Bottom Cement f2uantity, cf. ar sacks Hale Casing Weight Gracie Coupling Lertgih MD TVD MD TVD (incuding stage data} 13.3/8" 681E L-80 BTC 80' 0' 0' 80' 80' - Grouted to surface 12-1/4" 9.6/8" 40i# L-80 BTC 2,353' 0' 0' 2,385' . 2,400' . 2373 cu $ tncl xs, to surf 19. PRESENT WELL CONOfTiON SUMMARY (To be oorr-pieted for Redrr7l and Re-€ntry Operations} Total Depth MD (1t}: Total Depth TVD {ft}: Plugs (measured}: Effect. Depth MD (ft}: Effect. Depth TVD {ft}: Junk. (measured}: Casing Length Sire Cement Yotume MD TVD Conduktor/Stra,rcturat Surface intermediate Production inner Perforation Depth MD {ft}: Perforation Depth TVD (ft}: 20. Attachmerds: Filing Fee ® BOP Sketch Q Grilling Pragr~n ^ Time v. Depth Pleat ^ Shalkaw Hazard Analysis ^ Prexaerty Plat ^ Diverter Sketch ~] Seabed Report ^ Drilling Fktict Program [] 20 AAC 25,050 requk+ements ^ 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct. Printed Name David Dougall Signature ~` pate intact BiN p~,gp 258-3446 Title HSE r Phone 713.393.6122 Date f .. ,r° Commission Use Only Permit fo DriU Number: 207-006 API Number. SO- 029-23342.00 Pemtit Approve Date: ~ • p`~,3• ~ See covet letter for other requirernerrts. Conditions of approval ; B box ~ checked, wall rrray riot be used to expkare for, test, of produce coalbed methane, gas hydrates, or gas contained in shales: Other: Sarr~les req'd: Yes( No ^ Mud lag req'd: Yes[+~ No^ ~~~ c~ i ~~ (\`t v,~,~ +M ~P ..~5~.. H2S measures: Yes Na ^ Directional. svy req'd: Y No^ APPR VED BY THE COMMISSION DATE: ~ • ,COMMISSIONER Form i0-RW1 Revised 12/2005 GRIGINAL v~ Submit in Duplicate ,/.lf? Z,~ t2.•O7 ~~ ~ ,~~ • 1201 Laulsiana 5t. Suite 3540 Houston, Texas 77002 - t}.5.q, mane (713} 393 6100 f-ax {713} 343 6345 Ero RE+~~~~,/ED February 12, 2007 Mr. Jahn Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7'~' Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit. to Drill: Maggiore #1 Dear Mr. Norman, • Alaska Oil & Gas Cans. Commission .....~.- Anchorapa Eni Petroleum hereby applies for a Permit to Drill an onshore oil exploration well sQUth of the Kuparuk River Field on the North Slope. Eni plans to use Nabors Rig #27-E to drill and evaluate a directional well to 4,986' TVD ! 11,477' MD, then permanently plug and abandon the well. This well was previously approved by the Commission for drilling as a vertical hale to 4,500'. It consequently already has an assigned PTD number and API number as indicated on the enclosed Application form. Maggiore #1 will be drilled from an ice pad situated at the end of a 23-mile long ice road from which additional wells have been and possibly 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 25.0(}5 (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) Schematic of the proposed wellbore 3} Plats showing the surface location of the well 4} Diagram showing the proposed equipment layout on the pad S} Discussion of formation pressures, drilling risks and waste disposal 6) Casing program and design parameters 7) Drilling program summary 8} Formation evaluation program. 9} Diagrams and descriptions of the BOP equipment to be used • Mr. John Dorman Page 2 10) Shallow hazards evaluation 11) Abnormal formation pressure evaluation 12) Cementing program. 13) Drilling fluid program 14) Directional wellpath design 15) Eni does not anticipate the presence of H2S in the formations to be encountered in this. well. However,. H2S monitoring equipment will be functioning on the rig at all times during drilling and completion operations. 16} The fallowing are Eni's designated contacts far reporting responsibilities to the Commission: 1) Completion Report BiII Penrose, Drilling Engineer (20 AAC 25.070) (907) 258-3446 2} Geologic Data and Logs Charles Russell, Subsurface Manager (20 AAC 25.071.) (71.3) 393-6251 If you have any questions or require additional information, please contact me at (713) 97'7-5799 or Bill Penrose at (901) 258-3446. Sincerely, ENI PETROLEUIVi ~. ` ~ ~~,4„~ -. ~_ ~~-w David Dougall HSE Manager enclosures cc. Matted Rivetti -Eni Bill Penrose -Fairweather • _ Maggiore #1 ~ Planned Well Design 35' wjp 2/10/07 4,986' TVD ' #~ ~ ' ," ,~ ~w k r ^"Ia~,~_ ~y ~~• wry "" a'a `_, ~. .` ~ ~ ~ «,€ x ~ „~* i~ ~ ~p ~ r1 t~ i ,y ~ ~;; ~ ~ ~ s a :Y + ~~~~~ , ~, A ~ ~ q ~ 5 'k 9.W ` w~ BSI- '~'' ~ 1 . Maggiore #1 ~ ,. i~ ~~~ '~ ~ ~ ~ ~ , tl ~ ^° ,~ ~~ w' ~ ~~1 „'~~^ ~° ~ ~ Latitude - 70 00' 31.35" ~ ~ ~''~ '~: M , ~ iy~ t ~ ~ - Longitude - 149 17' 58.08" ~~~~~~,~ ` ~~ ~ 1~ ~~~~w i'i~~~°~ ~~ ~ "~ WGS 1927 , ~~3~~~~~~~;b .~ , ' ~~,~ ~ ~ ~ 1 1138 FNL, 402 FEL, T8N, R11 E, Sec 35, UM ;,~; ~ ~~`r,,~' a ~ . ~ ' '• i _ ~, 1~ ,' " _ ~t i - ~ ,A, 1 ~ru KKK $ "i 3 ~ Z •~~~ s ~~~ ~ ~. ~~ ~ T ' ~ is ~ ~ ~ 4 ~ ,*~ ~ ~ ~` . ~ . ~ 7~~~ } r ~ ~ ~ #~ ~ , ~ ~ i ~~~` ~ Maggiore.#1. ~ r ~~ i~ ~~~~~ ~ - ~ i E ~~ ~ , ~~ ~ , _..i ~ _- ! - ~ ' f ~ J ~ ~ r~ ~~ ~ .yam _ ~ ~ + A "Ad~ , ~° la ,oil, aW` ~t '1fi ~!E ~ - ~ +~. -y~ ~t~', s+ ~+ .# i r +~ ~ ~ q r ~ ~~ c m 1, a ~ P!~, M° . i ~ ~ui~~ ~ ~ r ;~ ~ r s ~ ~-_~ ~A ~ ~4 w r #. m ~ .' z ~ ,. ~ #, 1 ~ r yy~. } ~ rl .. ,~ Mi •,~~, +r ~ ~' % : ~ A0 a w ~ , ~ •„~ O4 g '~ ,:. ~~ p ~ A..!"id~, :' ~Mi ., ~ ~ ~ t,~w ~ ~ n ~~'~ ~ N ;`~ ~'I ~ vi. ~' ~ ~ a ~•~1 4 "~ ~~ i-. ~ ~ ~r~Im JR' .!R"'. ~ ~ hq'IW~ F' ~, ~.`. ~@ ~`d ~ ~ 'if '~,~1 ~. ~'~ :A„ ~f4,,,uNy ~I+1111~~~s y"' '~ ~ ~,.,.R, S 1~ ~~F ~-~ ~' !'a '~~ , a1~ * ~ .K.~ M,'4' ., ~^ ~~{ ~, <-+~dMl~km~Wd„ a~4 *"-'4' r ~ s 'S ~ ~A~ " r ~ `~ ~> +~ fi.~~ . ., ~ " ~, i ~ ~ ~'~ ~,~,/1' rc u ~ w. '~ ~~ ~ K ~"a .°,~ ~~rt i" »~ ~ Au` ~„ ' °~ .; ct ~ » "~ _ ~u Nt ~. c ~~ - '~ L@C,Jelld Satellite Photo from August 3, 1999 Landsat-7 ~~ ~~~~~~~~ * w. ~°°„°°, PanSharpened to 15m pixels Maggiore Prospect Projection: UTM Nad83 Zone6 "" Ats"°`" ~R°a° Full Scene Geotiff ~ ~~~ ~~®Il~rlAll ~ tl Edll ~ ~r r~P ~ ~, s _~pne ,Road t _~~ ~ s / '. ..t i : ~ ° ~ s ~° ~ ¢ c . ".~j/ rz F!~ ) t ~'~ ~kt ~ di 1 "e~ j~- ~irq i !r _ ~ ~ fii. ~ ~~~ ~ •.~C i y~ c ~ ;~ ~ n.~ ~ ~~~ ~• :~~ , 4 k+r , ~ z o~ a j ~'. ~~ ~~ '~ ~' ~~ e j ~SN~k~C~ 1 ir..A ~ ~°~ r ~ ~' x 1 ~ i •~ ~~' ~ ~ „] i ~ ~~{y{^^ , 'd ~ ~ I Q ~ l~ ~ fp~ yew ~~~ k ~ ..!~, " ~~ / . ,6M,s. x ~ y ~ + S TTT .4 C[41'i{ ~•J$1'r, 5/."t~ ~'. //~:/r ~, a ~ ~;x ~' i, ~ ~ ~~ ~ .^'~~ x ~i ~ ~ ~p" i.~a ~ . ~ ~ ~ - n~C1 C ~'Ir~ i~ ~~[ ~, i.~, r' ,. ,g ~ ~ _ ', r ~ ~ d~ Fse"~. ~ 9 y ",~, ~~ • ~ • s~ ;,. ,.~I ~ a ~ ~ ~ yp c'1 ,H ~ ~ "~ ° '~ - ~ ic] V ~ ~. 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NPPr ~fll{~~~~1~~{~ Eni Petroleum FRB07 ENI 01-00 MAGGIORE WELL AS-BUILT jpg (JPEG Imag... c~ ~I€~17~~3~k~Kr~-2 • x~ , f ~ ~ ~ ~+ ~ '~,ry+y°~ .o- a ., _. t == I'~~ -~ . :'~nTJ93~~~P- ~ ~ ~ _~ ~ ~. ~~, ~:i~ ~ ; , , ` ~. ~ .. ,~ ~. ~/ ~ ~ r ~' ~ ``~ e"~ ~ ~ ° c ~ ~"~~ ~ ' C ~.. ~' ~ ~ W ~~ ~ RE~E[VED FEB Y 2 2007 i ~~~ `~ ~- y~~~t~~~ ,ate-~t~~r ~~+9~'~~ r_ 7~ mom- ~_ .~_~~I ~1l Y`i i ~ ~~~ ~. . T.:a. Alaska Oil & Gas Cons. Commission Anchorage 3. z. ~,~~ ~I,~,SK~ `.1AT~ P~ANf ~~'hlE 4, NA~i 2?. ~ i~: '.'~ A .~ t •, i.~7. Z. ~4 . .^, i ' 'aC `;'E~~'ICA~ ~~+'~ EK~I. 3~ ~~aEla f3~a Nx~`'-~ LP115-CQ ~~~~ tJ :: , i,` !.~, i'tJ~l A~%} ±"3GG f~(?F~~ .~aTF.Tt(a'~I;~ 3~~ I41._IW't~}',TiY)I~F ~.3e :-. 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Regards, Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 • ~~~CIVGtJ FEB 1 2 2007 Alaska Oif & Gas Gons. Canmission AI1Cf1D~aQ@ ,. " ~ j .,~ `~. ,.- ra -- .,~ ,.. t /' `~. „v <~ ~.. ~ tvi fii ~ (` ~ D r ~ E ~'' `~.r 3v t~t~I~~l~~'t~s~ l ~~ ~} / Jar f / v `'.~ `'~ f 3~Y L. ~ ~Y ~~ E,- C;~~i1~3.3i.TJ}2 fl `~''~--ztt3lL_t ,_ ~ -'. ~ _ _ ~ 4 ., .~ _ ~ r. ~~ '^~ ~~ ~ -'r ,< - c= -~ ~, ~ _ '~ ~~ S~ y !^ ~ 1 ~.~~_. )~~ t ~I. ~. r'. p.~, ~ , F _ ~ ,. =,_ u~,, - ~rFt !', >...36. r.~~ri3~--fit r x7 - -. S .40i€ .0.:_R~54 A. .^~ eA7"E PL,aA4E ~L?R3E k, I~7 oRF`i `?..i. ,':--E~Tdt~E S(~fiti3~ ~,~CtT ~F2: x.43 <34396' ;:?.3. +i _r, E r~~~:~ A~J~ S~'ERl ~~RL ~t"~!~ ~r?C~i_ I E-~~tSEU ON NHS CWL3s- CL-i- .: ~ I:~:,I 4 x~tv6 ~s~ F"a~Y ~.ti~ s~~C,f' ~3F:~ STlC T1 f.~N~ '~'J!3?-i ctt5~e n. it~ ,N f i.., ~ i~J ~>P~Ftft~I„t3=~zRI~` T=om VA 17 (3rv. r, ~;3tJ:~~,. GFOii79=9 FiC?Df:L. 4 ~~~~~~~1 ~S 4 ~~ Y ;. ,~~ a3~ ,~~~ .rk +' } _ - ., ,. m..,....a~ ~ 1 ~icho r7d ~~ pA3tiwen -~ d T ~ ~ 31'`e _ ; ~., , ~_ , - t3Z'4 ~F-~' CIF IC~R " 7~''_iF t i}~7 ~iT Y A)JY .,r ~ .~ ,i:.., - :xS3Lb LIfeE* ~ ;••/1=Y3Rt~ SA i. Crt t&t tkT -ifi%:' ~!..tl. f _Yt~?f= tNTS R SU;x ~J£=Y ~, fitii7 T3-i/iT~ :aLL .15. C?f_r~EI3. 9, 2337. ~. ',~:a~. Sk=.> .Y!-S 5°134v F'ri tJ~7-}-e Flf x=D..S~?"FI.`..'~Pd 3S. T. E',8 ~7_, ice. l2 ~.. t.}~kZf r.+:-'.if7T.+i,2+a. f~LA.~.£C,A t I ~` (t (p I'3...rl.F- t C.C~kL?CTt C' a it *'~6 C1S tvlk it iC.C3F,r?i?Tfi z'~£S~#'~S ~"(O!'J(I"3M FGtf3 TI ~ I'` e YLC}i~1 ~C ~ ;s~P i t i. L.+~. t"t fit3+5 ki V ~s t lit O;+d T3FF SI=TS - --- ~ - ~ - : @~ I~a,fR f 1 ~?f0 35 3SEz ~ a+f 4U Ix~~.'t= ~ ", 1 ` -- I~3_I. .'r ) ~ 1 "i1 3 4913 i xi ' ~'~. , ' _ _ E i E ~ f A-i-1.a. 3 t 7_ 8 tr3F?._ 9 ? _% _ 7:L f EL ..~ _ ~ ~ -, . _ - - - - I '~~ ,. -m; ,__ .,._- _ .. .. ::..,_.. _, - ~ .... __ _.~.... -- ., . .., f ~ A° Eli ,., i ~ _ -_.. . ~ ~ x' 1 of 2 2/12/2007 2:27 PM LEGEND ~'->- WELL AS-STAKE - - - EDGE OF STAKED ]CE PAD NOTES 1, DATE OF SURVEY: JAN. 17, 2aD7. 2. REF. FIELD BOOK: M[f~7-01 PGS. 29-32. 3. COORDINATES ARE ALASKA STATE PLANE ZONE 4, NAD 27. 4. HORIZONTAL AND VERTICAL CONTROL 15 BASED ON NGS OPUS-CORS SOLUTIONS USING DSL1, PU01 AND PBOC CORS STATIONS WITH ELEVATION REDUCED TO ORTHOMETRIC ELEVATION USING CEO[D99 MODEL. P/IAGGIOPE ~MAG RP#2 0 c~ -N- I MAG RP#1\ / ~ / cT CUTTING / ~ TANK ~ / ~~ o ~\ ~o / o / .~ ~o / i!~=` 8 r v ~~ ~Y I. e s~ ~ ' ~ `: t~ ... -- Q M~ k j ~ ;~ ~~ 3 ; ~ TANK SKID GENERATOR ~1,~ t a: ,. ~ ~ „ ~ ~'" ` r '` ~, ~ a F - '``~ ~~ ~ ~ ` ?, ~; ' G~~R _ I- > ~ G i/EY VICINITY MAP N. T. s. 'STER EXTRA CAMP ACS CONNEX JOW MELTER /LINER ~ r ,..,........ ,..., J-E ~ ~' / W/LW ER STEEL STOP, TOOL S ELECTRICAL S Sh GENERATOR WELD 5K[D FUEL TANK a / /\ _1_ ~`~- DIESEL FUEL TANK J ~ & CHEMICAL TANK ~\ /g~~ WjL]NER / ~\ / h, GRAPHIC SCALE ~ / e ire z0e aer3 / ~~ ~ ~~ ( IN FEET ) \ 1 inch = 200 ft. ~ ~11~ COI Cho GENERATION & WATER TREATMENT SPM E N 1 ~o'H ,j26i07 PETROLEUM ALASKA a~ es-r~° ENI PETROLEUM SHEcT: MAGGIORE WELL PROPOSED RIG LAYOUT '°`~ i "=z~a' • • ENI Petroleum Pressure Calculations, Drilling Area Risks and Waste Disposal Maggiore #1 Maximum Anticipated 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 4,986' 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 are two leak-off tests (both 12.3 ppg or 0.640 psi/ft) conducted at 2,000' in the Rock Flour #2 and Rock Flour #3. -' -~ Calculations for (a) 8-1/2" hole section MASP (pore pressure) _ (4,986 ft) (0.468-0.11) = 1,785 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 a plugged and abandoned well located approximately five 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'. ~~ Maggiore#1 will be drilled to only 4,500' 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 US Operating Company Inc. Maggiore #1 Casing 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 2385 11.2 15.5 2.8 * Tensile design safety factor is calculated using pipe weight less buoyancy. Burst design safety factor is calculated at the surface using zero backup on the outside and MASP on the inside. Collapse design safety factor is 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' TVD Surface casing to stablize shallow formations, provide an anchor for the BOP stack and provide shoe strength in the event of a kick • • ENI Petroleum Maggiore #1 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 wellhead on 13-3/8" conductor. 3. Install diverter spool and BOPE on wellhead. Rig diverter spool and BOPS for diverter mode and function test. 4. Directionally drill 12-1/4" hole to 2,385' MD / 2,000' TVD per the directional program. _. 5. Run 9-5/8" 40#, L-80, BTC surface casing and cement to surface per cementing program. 6. Land casing and rig the diverter spool and BOPE to BOP mode. Test to 3,500 psi. 7. M/iT 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. 8. M/U 8-1/2" directional drilling assembly. RIH. c~ p, r ~ 9. Dri11 8-1/2" directional hole to TD at 11,477' MD /,4,&6CI~TVD, recording i on,~and formation evaluation logs via MWD and LWD, respectively. ~~ a? 10. At TD, condition the hole and run additional open-hole logs on drill pipe if z."~~" needed. 11. At the conclusion of logging, plug and abandon the well per AOGCC regulations. r • ENI Petroleum Inc. Maggiore #1 LOGGING PROGRAM ~~~~~,~ ~•ru,~,i~,. 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 g fir c~.c.ro~S Su.1sT4.c+- ~pl{.. ~~' ~ 2.385 ~//a) ~ a..//acv c.~..o,~~ts tool: °~ S~~i~, oC %~*;~6K.r4e~, k» f~c~•.. GR/ARC PWD' ~R/l~ c~ ~~ ~''~'s • /~ GR /GVR to top of N sand U 2' • ~2 •07 At total depth make a mad pass over the entire open hole interval (for complete / continuous LWD log). Potential Open Hole Logging on Drill Pipe: Contractor: Baker Atlas Log interval: from total depth of 4,986' TVD to the 13.375" casing shoe at 2,385' MD. Hole Size: $.5" Services: will be a Grand Slam (Spectral Gamma Ray/C_N/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: Drill Pipe 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: 4,896' MD - 2,385' MD every 50' levels (50) 2,385' 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 @ 4,896' MD /TVD Services: Operating Service O ep rating 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 2385' MD 500' 2385' MD to 4,986' MD Total Depth 30' (Increase amount in ZOI and Shows) 13 5/B' 5000/ HYIIRIL ANNULAR BOP 4' 2• a 179' d I 3ro•~----------------'--L--~-- R' 8 1/0' 3 SOOOt GATE VALVE 3~• _-_ _-_-_- ~__ 3' 5000/ HLMt VALVE P 10 5/S' 3/9' 1 ------- 2yILL UNE 3'xY Y 6 1/S' t0 ~/tt' CUSTOMER FURNISHED -21 1/4' 2000/ HYDRIL BOP/OAA:RfER FLG SURFACE DIVERTER PIPING CONFIGURATION PLAN VIEW SURFACE DIVERTER CONFIGURATION H:VLCADFILE\27E\BOP\27E0301C.DWG, 12I07I01 01:02:51 PM NmN1m aIVFRiOR s~ L1e~ / cONRCURAlION cwwau aAw mxxECilon ro ao~>Fn OANp Ae1sm orvmim AS a[0 OCN p CexuuL BSUE coimrL ssut: OfYPi110N --~1yy- No6w1 AgNm OriMin9 Mc. ~I~~ 2525 C Str11U Suit 'm0 IMA~dINl~lvit+~ Mwlpruyp Nmlu 99503 907-293-8000 °'' RIG 27E ' BOP STACK AND SURFACE DIVERTER ~ TOE aFi100 ~ wANNm ~ ~ ~~ E E ONE 010. N0. SM. NIS JAN 91 27E0301D 1 OF BOLTED FIANI7E SINGLE 13 5/B' 5000/ HYDRA MPl PIPE RAM BOLTED FIANCE SINGLE 13 5/B' 5000/ HYDRIL MPl BUND RAM ~~ BOLED FLANGE •' 5000/ HCR VALVE - I, s' CHOKE 1JNE \ 4' 5000/ GATE VALVE ~ BOLTED RANGE SINGLE 13 5/B' S000(r HYORIL MPL RPE RAM BOLTED FlM1GE ADAPTER SPOOL -HUB ^ FIANCE GALE :1UAlOR BOP STACK ELEVATION • • • • WELL SITE SURVEY SHALLOW DRILLING HAZARDS EVALUATION PROPOSED MAGGIORE #1 ALASKA STATE LEASE 390660 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 (400 to 2800' TVD). Our well plan is designed with this potential hazard in mind. Maggiore #1 is a vertical well and the proposed surface hole location will be 4050' FSL & 5790' FEL of Section 35, Township 08 North by Range 11 East (x=1352615.78', y=25486625.83', 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 400'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 2,400' 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 OA1 sandstone of the Schrader Bluff Formation is the target of this well. The Schrader Bluff Formation contains significant reserves of heavy oil in the Orion, Polaris and West Sak fields. Oil was also found in surrounding wells. • • Geophysics The sparse 2D seismic grid 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 2D lines are enclosed for your reference. A Maggiore #1 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. USGS 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 1000 and 1500 ft (TVDSS). We expect the base of the permafrost in Maggiore #1 at around 1350 ft (TVDSS). _ Shallow Gas/Oil Accumulations The sparse 2D lines do not show any geophysical evidence of significant accumulation of shallow gas beneath the Maggiore #1 location. N_o amplitude anomalies, velocity sag or frequency attenuation indicators are present from 2-D seismic covering the location. As reported in literature Maggiore #1 is outside the area associated with the presence of natural gas in the sands of the Sagavanirktok Formation (see enclosed map). Toolik Fed and Sequoia mudlogs do not show any shallow gas. 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 Maggiore #1 well. Summary We have not identified from seismic or offset well data any conditions beneath the Maggiore #1 location which could pose a prohibitive shallow or intermediate depth drilling hazard to the planned drilling operations. Natural gas hydrates are not likely in the sands and gravels of the Sagavanirktok Formation 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 Maggiore #1 well design and operational plan. • • WELL SITE SURVEY ABNORMAL FORMATION PRESSURE EVALUATION MAGGIORE 1 LOCATION ALASKA STATE LEASE 390660 NORTH SLOPE, ALASKA The available geophysical data and proximal offset well data to the Maggiore #1 (4050' FSL & 5790' FEL of Section 35, Township 08 North by Range 11 East (x=1352615.78', y=25486625.83', 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 4200 ft SSTVD. A seismic/well base map highlighting the area of 2D coverage, key seismic transect, key offset wells and the Maggiore #1 well location is included for .reference. Also included is a pressure versus depth plot generated for the Maggiore #1 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 4200' within the area. Based on our analysis of the formations to be penetrated by the Maggiore #1, no overpressure is anticipated above the proposed total depth of 4200' 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 Maggiore #1 well location. All operations and engineering personnel have been advised of the anticipated geological drilling conditions. • • TRC CDP 132 1 p 1' 0 1 '0 1 `' 0 -~a 1 -'?0 1 90 3: ;i 11 0 11 0 114-0 11 0 3 0 3 p 11 0 1 0 1 p 1 ~ ~ 3 0 1 0 37 0 1 09 9 9 p 9 9 9 9 9 9pp 37 0 3 0 62 TRC CDP _ E m~ ~ :.. _., , - -. _ _ ~ _... _:. d~"m y m~ „"~' _ "_-. _M~ds ... a-e, 6~~~1~'~~kN"~V~.-; 'fix W?&~ ~~ ~ ! ~ ~ ~~ . ., -:t asarx.,, ,.<wn... ....,~-.r.: wwwrbr 025 ::_ w.. • a ~. >.,...x. +.~w~" °~ .. a~'50 ~..~.,,~ ~ ~, ~ ~;~ ~, .. ,~ ,w. . Expected ~.. s ~ - ~.,a. ,~,, ~ .. ~ '"~~""~"""""'"^'"'"'""`~" ""'""'*~ Base of the permafrost -- - ~ ~ _ :. ~. ,:t .. ~,_... 0 X50 ~~ ..~. ... "`~""~' "" ~ ~,.wty~ +w+ ~"`~ .-~_. -- _ r _. ,~,., '1.500 ~* .~ „' ~ -, ,,,,.„ .~. ~ w.. .., .~.~„~~ ,,~.r...~,,,. ~~ .. .~ ~ -~ „~.:, ~ „~~~ - ~.:.. '," ~ • '` ~ ..,~s~-'~~w~r~ IW~ :.~ryyyy~s.. _ _9 ~"• hMyWWWS~q~ rw,~„ >a .~ ",'~i i~~,mx.. ~._,,.. r .~ , "~~ .~~ ~ ~ ~~ ~ -.,. -tir - ~" '~` _, s ^w~ _'~.' _~..,,..... view "~ 0.750 ~ ~ ~, -.ti.nrr.,. ^.°' ~ ~ ~ 7 ~50 n. _ ... ~, '~` "" 4 '.~,,~, '~ °'`~ wM ~*+~,,,~~~` ~ ~ ~ ""~ '~ ~~ ~ Top Schrader Bluff FM _ ~ ww.^~+~+~ ~~ ~ _. ,. ~" ~,~ 4 , ~,.~:~.~ ' .~.. ~ ~ .~~~ -- N sandstone ~.. '~ Top OA sandstone 1,Oo ~ - ~_ - - _ _ - ~` ~ - Base OB sandstone - -_ -~- - _ ~4 .v - "~ ~ ~G R,.9p § ~ Nr '~1f11~in~y~M~w, v " °`~M „ ~ , . ~v,i~ irk t ,t ~ r. ... ~- ~- 125 ~ ~~ ~ ; ~ .; . ~.- 1 ~?50 .. ~. `_ ~ ~, _ ~ °:;, ~+ ~. '~< _ - ~~ ~ ~ ~_- , ~~ - ~ ~ ~ ~~ ~ .~ ~ ;b. ~ + w ~I "~ ~ ~ u ... ~ l+d ,5fp - e~ ~- ~,. ~ ~~ ~~ i o ~u _ ~ w"'~ ", "° a a~ ~~ ~ b00 racl~fbur~outF~1 ,, _ ~ ar,. .„ ~" ,, , ~ti, ~, ~ „,,~,~ ~ ~~ ~' ~"~ i' pstrr~spac_reJ2 ~ .~ .,.. 1.500 Top Schrader Bluff FM I i, N sandstone Top OA sandstone Base OB sandstone i E~, ~~~ 1 Maggiore Sonic Velocity 0 5000 10000 15000 0 _-_.__ _._..- --- ---- -- 500 1000 -..._.._. ~. ~_~ ~~,~ ~ 1500 ___ _....- ~ - _ -- ~ t.~-~ ~~ ._..,: ~_ 2000 - - ,, _ -~ - - x ~- 2500 a - d o 3000 _ ~~ .- _ ~ - _ _ 3500 .: 4000 "- i - 4 _ 500 _ _ _. _ ~` 5000 - - _ _._.. -. _ ---_._ .._~.---- _ - 20000 Ravik State Sequoia Hemi State Toolik Fed Wolfbutton 25000 • • ~ RF1 & Hemisprings Pressure Data 0 2000 • 4000 d ~ 6000 t a~ O 8000 10000 12000 L ~ - -- -- - _ . ---- -•- RF1 MW -f- RF1 PP + Hemisprings MW -~I-- Hemisprings PP ~ Colville High Regional Dat~ ~ i -~ ~ _ r 6.0 7.0 8.0 9.0 Pressure data ppg 10.0 11.0 I L.U • • • - ~ Schlumberger CemCADE Preliminary Job Design 9 5/8" Surface Casin , V2 Preliminary Job Design based on limited input data. For estimate purposes only. Rig: Location: Exploration Client: ENI Exploration Revision Date: 2/9/2007 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 ,) u. < Base of Permafrost at 2,000' MD (1,784' ND) i < Top of Tail at 1,985' MD f~ < 9 5/8", 47.0# casing in 12 1/4" OH TD at 2,385' MD (2,001' 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 1,985' MD. Lead Slurrv Minimum pump time: 220 min. (pump time plus 120 min.} ARCTICSET Lite @ 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 (1985' - 100') x 3.50 (250% excess) = 2066.3 ft3 76.3 ft3 + 2066.3 ft3 = 2142.6 ft3 2142.6 ft3 / 4.45 ft3/sk = 481.5 sks Round up to 490 sks Have 240 sks of additional Lead on location for Top Out stage, if necessary. Tail Slurrv Minimum pump time: 160 min. (pump time plus 120 min.) ARCTICSET I @ 15.7 ppg - 0.93 ft3/sk 0.3132 ft3/ft x (2385' - 2000') x 1.50 (50% excess) = 180.9 ft3 0.3132 ft3/ft x (2000' - 1985') x 3.50 (250% excess) = 16.4 ft3 0.4110 ft3/ft x 80' (Shoe Joint) = 32.9 ft3 180.9 ft3 + 16.4 ft3 + 32.9 ft3 = 230.2 ft3 230.2 ft3/ 0.93 ft3/sk = 247.5 sks Round up to 250 sks BHST = 38`F, Estimated BHCT = 599=. (BHST calculated using a gradient of 2.69=/100 ft. below the permafrost) PUMP SCHEDULE Pump Rate Stage Stage Time Cumulative Stage Volume Time (bpm) (bbl) (min) (min) Water 5.0 10.0 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 7.0 374.0 53.4 86.4 AS 1 6.0 41.0 6.8 93.2 Drop top plug 0.0 0.0 5.0 98.2 Mud 8.0 159.7 20.0 118.2 Mud 3.0 9.0 3.0 121.2 MUD REMOVAL Recommended Mud Properties: 9.5 ppg, Pv < 15, T., < 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 joint below permafrost. µ Mark of Schlumberger • • Schlumberger CemCAD Ewell cementing recommendation for 9-5/8" Surface Casing Operator : ENI Well Maggiore #1 Country :USA Field Exploration State :Alaska Prepared for :Bill Penrose Location Amjad Chaudhry Proposal No. : V2 (P2 Directional) Service Point Prudhoe Bay Date Prepared :February 09, 2007 Business Phone (907) 659-2434 FAX No. (907) 659 -2538 Prepared by Phone E-Mail Address Mike Martin (907) 263-4207 martin13@slb.com Q C7 ~]~C ~~ F' 9~~RTE . Disclaimer Notice: This information is presented in goad faith, but no warranty is given by antl Schlumberger assumes no liability 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 antl 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 well 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 he inferred. Mark of Schlumberger • Client ENI Well Maggiore #1 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 :2385.0 ft BHST : 38 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 :2305.0 ft Casing/liner Shoe MD :2385.0 ft S I r~~r Casing/Liner MD OD Joint Weight ID Grade Collapse Burst Thread (ft) (in) (ft) (Ib/ft) (in) (psi) (psi) 2385.0 9 5/8 40.0 47.0 8.681 L-80 4760 6870 BTC Mean OH Diameter :12.250 in Mean Annular Excess :216.3 Mean OH Equivalent Diameter: 16.561 in Total OH Volume :608.8 bbl (including excess) Caliper and Hole Size Data MD Caliper Excess Equiv. Diam. ft in % in 2000.0 12.250 250.0 17.135 2385.0 12.250 50.0 13.371 Page 2 eni - maggiore 1.cfw ; 02-09-2007 ; Loadcase 958 Surf ; Version wcs-cem45_89 r Client ENI Well Maggiore #1 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Max. Deviation Angle : 58 deg Max. DLS :3.000 deg/100ft MD ft Directional Survey Data TVD Deviation Azimuth ft de de Dogleg Sev. de /100ft 0.0 0.0 0.0 270.0 0.000 250.0 250.0 0.0 270.0 0.000 300.0 300.0 0.8 270.0 1.500 350.0 350.0 1.5 270.0 1.500 400.0 399.9 3.0 270.0 3.000 500.0 499.6 6.0 270.0 3.000 600.0 598.8 9.0 270.0 3.000 700.0 697.1 12.0 270.0 3.000 800.0 794.3 15.0 270.0 3.000 900.0 890.2 18.0 270.0 3.000 1000.0 984.4 21.0 270.0 3.000 1100.0 1076.8 24.0 270.0 3.000 1200.0 1167.1 27.0 270.0 3.000 1300.0 1254.9 30.0 270.0 3.000 1400.0 1340.2 33.0 270.0 3.000 1500.0 1422.6 36.0 270.0 3.000 1600.0 1501.9 39.0 270.0 3.000 1700.0 1577.9 42.0 270.0 3.000 1800.0 1650.5 45.0 270.0 3.000 1900.0 1719.3 48.0 270.0 3.000 2000.0 1784.2 51.0 270.0 3.000 2100.0 1845.1 54.0 270.0 3.000 2200.0 1901.7 57.0 270.0 3.000 2333.3 1973.4 58.0 270.0 0.750 2385.0 2000.8 58.0 270.0 0.000 Formation Data MD Frac. Pore Name Lithology (ft) (Ib/gal) (Ib/gal) 2000.0 12.50 8.30 P.Frost 2385.0 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 2000.0 1784.2 32 0.0 2385.0 2000.8 38 0.3 I r~sr Page 3 eni - maggiore 1.cfw ; 02-09-2007 ; Loadcase 958 Surf ;Version wcs-cem45_B9 • • Client ENI Well Maggiore #1 Sc~lrg~r String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Section 2: ce ntralizer placement Top of centralization :2000.0 ft Bottom Cent. MD :2365.0 ft Casing Shoe :2385.0 ft NB of Cent. Used :9 NB of Floating Cent. :0 Centralizer Placement Bottom MD Nbr. Cent. / Cent. Name Code Min. STO Cf Depth ft Joint % ft 2385.0 9 1 /1 S3123695-9 5/8-6-36 3/16" 68.5 2385.0 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 t.cfw ; 02-09-2007 ; Loadcase 958 Surf : Version wcs-cem45_89 • Client ENI Well Maggiore #1 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 Mud Type : WBM Job volume :168.7 bbl MUDPUSH II DESIGN Fluid No: 4 Density :10.20 Ib/gal Job volume :50.0 bbl ASL surf DESIGN Fluid No: 2 Density Rheo. Model : HERSCHEL_B. k At temp. : 65 degF n Ty Gel Strength DESIGN BLEND Name : G Dry Density : 199.77 Ib/ft3 Sack Weight : 94 Ib BASE FLUID Type :Fresh water SLURRY Mix Fluid :20.722 gal/sk Yield :4.45 ft3/sk Porosity :62.3 Density :8.321b/gal r~~r 10.70 Ib/gal 5.42E-3 Ibf.s^n/ft2 :0.663 9.56 Ibf/100ft2 (Ibf/100ft2) Job volume :374.0 bbl Quantity :472.36 sk Solid Fraction :37.7 Base Fluid :20.153 gal/sk AS1 DESIGN Fluid No: 5 Density : 15.70 Ib/gal Rheo. Model : HERSCHEL_B. k : 1.35E-3 Ibf.s^n/ft2 At temp. : 65 degF n :1.068 Ty :5.431bf/100ft2 Gel Strength : (Ibf/100ft2) DESIGN BLEND Name : ArcticSET1 Dry Density : 174.56 Ib/ft3 Sack Weight : 80 Ib BASE FLUID Type :Fresh water SLURRY Mix Fluid :3.536 gal/sk Yield :0.93 ft3/sk Porosity :50.8 Density :8.321b/gal Job volume :41.0 bbl Quantity :247.64 sk Solid Fraction :49.2 Base Fluid :3.536 gal/sk Page 5 eni - maggiore 1.ciw; 02-09-2007: Loadcase 958 SurF ; Version wcs-cem45_89 Client ENI ~ ~ r~~r Well Maggiore #1 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 168.7 bbl Total Volume 673.7 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 374.0 1985.0 0.0 10.70 k:5.42E-3 Ibf.s^n/ft2 n:0.663 Tv:9.56 Ibf/100ft2 AS1 41.0 400.0 1985.0 15.70 k:1.35E-31bf.s^n/ft2 n:1.068 Tv:5.431bf/100ft2 Mud 168.7 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 4495 psi at 2305.0 ft Burst 6870 psi at 0.0 ft Cs .Pum out 34 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 7.0 374.0 .53.4 374.0 80 AS1 6.0 41.0 6.8 41.0 80 Pause 0.0 0.0 5.0 0.0 80 Drop top plug Mud 8.0 159.7 20.0 159.7 80 Mud 3.0 9.0 3.0 168.7 80 Slow & bump plug Total 02:01 673.7 bbl hr:mn D namic Securi Checks Frac 5 psi at 100.0 ft Pore 0 psi at 100.0 ft Collapse 4495 psi at 2305.0 ft Burst 6654 si at 0.0 ft Page 6 eni - maggiore 1.cfw ; 02-09-2007 ; LcadCase 958 Surf ;Version wcs-cem45_89 • Client ENI Well Maggiore #i String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf ft o ~ M a - ~_ N (U N O a c c Q rp 0 0 C E '~ a d ~ 0 LL O Ib/g al 8 12 16 - Hydrostatic - ivxn. Hydrostatic Max. Dynamic - - Min. Dynamic Frac - Fore ' $d~InM~~ O ~ Cad. WHP N :~ a a. 2 o~ 1 0 100 200 Time (min) ~~ ~_ T •- LC) N N C C Q O 0 100 200 Fluid Sequence Dynamic Well Security Time (min) Depth 2385 ft rwius ac zsoo ri - D our ~ Q In 0 20 40 60 80 100 120 140 Time (m in) Page 7 eni - maggiore 1.cfw ; 02-09-2001; Loadcase 958 Surf ;Version wcs-cem45_89 20 40 60 80 Time (m in) • • Ma lore #1 DRILLING FLUIDS PROPOSAL =1n111 ° ° LIP o ~~~lul In'''~l ~II~N ~ O Maggiore #1 Exploration Well r - -- ,- _ .~ :~ ~:.-- -. ~ ~:~ ~y ___ -- --- Name Signature Date Originator: Chris Wallace Reviewed by: Customer Approval: Bill Penrose/ Amjad Chaudhry Version: 2.0 Date: 12 Februar , 2007 Location North Slope Alaska Confidential Date: Ver 2.0, 12th February, 2007 • Maggiore #1 Well Summary The Maggiore #1 exploration well is to be drilled as a "grassroots" Extended Reach exploration well. Production zone target is to be a West Sak /Schrader Bluff equivalent sand based on the new directional plan P2. Planned pore pressures of 8.6 - 9.0 EMW are to be expected. Generalized Geology and Formation Tops (Typical of Area) GENERALIZED GEOLOGICAL FORECAST GEOLOGICAL FM LITH DESCRIPTION ' Permafrost:Conglomerate Unconsolidated fine to very coarse _ E ~ . gravel to 600' MD a :, Hy r t s 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 West Sak D 0 8 B West Sak sands Upper West Sak & West Sak D 8 B are B ~~.ydrocarbon bearing West Sak Sands A Base of the West Sak Location North Slope Alaska Confidential Date: Ver 2.0, 12th February, 2007 • Directional Profile ~. •i9g 2006 b41 L1.C. 9S'OAB I AD: 11477 ft pperata: BVI 5"tlrippe ~: 4987 tt We1Na~re: Magpwet l.~°c. D'~e~ BA~e: 8S In Locatbn: 417 r nma~ ~n~ann~ c,.~,n..,~ um r w Q0 v r Z ++ Q. Q) •~ R V 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 logging/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: Ver 2.0, 12`h February, 2007 Horizontal Displacement (1000 ftl • • Project Summary Casing Hole Measured Mud Size Size Depth TVD Mud Weight in in Profile ft (ft) S stem 13.375 n/a w 100 100 n/a n/a 9.625 I 12.25 Na I 8.5 2,384 ~ 2,000 ~ Spud WBM ~ 8.6 - 9.5 ~ 11,477 14,986 I Ve MOBMNT 19.4^ 9.5 Location North Slope Alaska Confidential Date: Ver 2.0, 12th February, 2007 • • _ ~...-. ' -- _.. Ma lore #1 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 (Ib/100ft2) 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 - 2,385 9.2 - 9.5 150 - 200 30 - 35 4 - 6 <600 9.0 - 9.5 Surface Interval Fluid Formulation Product Name Quanti 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: Ver 2.0, 12`h February, 2007 • f ~ ~ ----' Maggiore #1 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. '/z" 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-Sitter, not the pump. • Ensure that De-Sitter 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: Ver 2.0, 12th February, 2007 • • __ _~~' Ma lore #1 Surface Interval Overview Surface to 2,385' 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. It 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: Ver 2.0, 12th February, 2007 • • ~ -~ Maggiore #1 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 KLEEN (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: Ver 2.0, 12th February, 2007 L • __ Ma lore #1 Production Drilling Interval Drilling Fluid System VersaPro NT Key Products LVT-200, CaCl2, CaCOa, VersaCoat HF, HRP, VersaWet, Lime,VersaMOD Solids Control Shakers, Mud cleaner, Centrifuge, and Magnets Potential Problems Lithologic instability near the wellbore. Torque and drag. Hole cleanin in deviated extended build and tan ent sections to 73 de rees PRODUCTION INTERVAL MUD PROPERTIES Depth MD (ft) Mud Wt. (ppg) Plastic Viscosity (cp) Yield Point (Ib/100ft2) HPHT Fluid Loss (ml/30min) Chlorides (mg/I} ES (volts) 2385 - 11477 9.4 15 - 18 19 - 23 4 - 6 28,000 - 31,000 >400 Production Interval Fluid Formulation (for new 9.4 ppg VersaPro NT fluid) Product Per bbl Quantlt Unit Mineral Oil - LVT 200 (.825 SpG) 23 gal IMG 400 4 - 6 Ibs Lime 3.0 Ibs VERSACOAT HF 5.0 Ibs VERSAWET 2.0 Ibs Brine (10.7 ppg CaCl2) 16.5 gal VERSA-MOD 0.5 Ibs VERSA HRP 0.5 lbs 85 S-200 (or as needed for Ibs correct wei ht Location North Slope Alaska Confidential Date: Ver 2.0, 12th February, 2007 • • ~- Ma lore #1 Production Interval Objective The sidetrack production interval will be drilled to a TD of 11477' MD. The well is to be abandoned after logging/testing is completed. Production Interval Treatment Considerations - The lithology for this interval is expected to be typical of this region consisting of sand and silty sands that are commonly found on West Sak/Schrader Bluff 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. - A dilution program to help minimize formation damage will not be needed. - Ensure that hole cleaning is adequate while drilling this interval. - 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: Ver 2.0, 12'h February, 2007 • • '_ Ma lore #1 Production Interval Operations: Refer to the "Virtual Hydraulics" models for flow rate vs. drill rate issues which may come into play on this interval. 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. 2. Drill ahead. Adjust rheology, pipe rotation speed, pipe running speeds and pump rates as needed to balance hole cleaning and ECD. 3. Drill ahead watching for wellbore instability problems. 4. It is important that the wall cake quality is such that the filtercake has the best chance for proper lift-off during the testing phase of the operations. Add S-200 (CaCO3) to insure that the 80 - 85 ppb ratio is maintained while drilling. 5. Monitor and record drilling parameters on each connection. Look for torque and drag issues as these will most likely be caused by hole cleaning issues. 6. 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. 7. Tandem balanced sweeps of + 2 ppg over mud weight may be pumped to evaluate hole cleaning efficiency. Extended circulating times and careful monitoring of ECD's will be required to successfully drill this extended profile. Location North Slope Alaska Confidential Date: Ver 2.0, 12th February, 2007 • • Virtual Hydraulics Model M~ SWACO ©1995-2006 Nt-I L.L.C. 'Mark of PAI L.L.C. ITUAL HYDRAULICS* Sna~Sl ~pth Fomlation Geometry An~le (ft) Top MD/TW~g OCYID (tt) (n) i UGat 8.5"OMB _ MD: 11477 ft Operator: l3Jl 't* 5"drinpipe TVD: 4987 ft !welNante: MaggiDrel i Bit S¢e: 8b in Location: _ Date: 2/122007 i Country: USA __ Density PV (cP) Temperature Va Fble Clean Pressure Distribution (Ib/gal) ~, LSYP (Ib/100P (°F) (ft/min) Index (%) 2 t o Bit=14.4 Ann=179 DS=6 y .. I Drilling Fluid VERSACLEAN (LVi-200) Mud Weigh 9.4 algal Test Temp 84 °F System Data Flow Rate 550 gal/ni1 P~netrationRate150 ft/hr Rotary Speed 80 rpm Weight on Bit 10 1000 6 Bd Nozzles 0905 ii' Pressure Losses Modified Power Law DrilString 1507 psi MWD 246 psi Bit 320 psi Bit OnADff 100 psi Annulus 399 psi Surface f_qup 36 psi U-Tube Bfect 42 psi Total System 2650 psi f~D fB;D +Cut Csg Shoe 9.42 10.161032 TD 9A2 10.9611.12 ~VRDH-Ve~slon 3.1 F35 +F70 (1001) Location North Slope Alaska Confidential Date: Ver 2.0, 12th February, 2007 • • Maggiore #1 ~ 1 5- I L.L. Mi SWACO ~ g 5'OMB AU: 11477 ft Operates: BJI MfM Ot Ma LLC IIRTUAL NYDRAULI CS` VRDH ~ TVD: 4987 ft Wel Narte: htaggiorel 5 ~`I'p°~ a1S¢e: g5 in Location: _ _ _ _ _ _Date: 2!12120 07 j Country: USA Hole Cleaning ENI Maggiore 1 1.0o - ROP 50 ft/hr . - ROP 100 ft/h - ROP 150 ft/hr ' ' Poor Cleaning ROP ~nC~ (r hF _ -- ROP_250 ft/h~' X 0.75 ~ ~~~ C Fair Hole Cleaning _ C -`, •~ 0.50 I V _I ~ ole Cleaning O 0.25 _._ _.~ Very Good Hole Cleaning -- - i p ~ - - - -- i ~ ~ 300 400 500 600 700 Flow Rate (aal/m inl NOTE: In all cases where the flow rate is less than 450 gpm or drill rate exceeds 100 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: Ver 2.0, 12th February, 2007 • • f .~w~ -q Ma lore #1 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 VersaPro Displacement Recommendations: This procedure involves a direct displacement to displace the cement. A spacer consisting of viscosified oil mud will be pumped ahead of the MOBM. / Change out any rubber goods to diesel resistant products. / Rig up catch pans, and any other necessary clean up equipment prior to displacement. Cuttings tanks etc. should be in place to capture cuttings, etc. / Flush out kill line from pit to stack with water if possible. / Flush and clean out pit system and take on VeRSnPRO LS / With the new BHA on bottom circulate the spud mud at a high rate to remove any residual fluid from the tubulars. / Drill the float collar and to within 2 ft. of the float shoe with spud mud. / Displace the spud mud to a 9.4 Ib/gal VeRSaPrto system. / Pump a 40 bbl spacer consisting of oil base followed by VertsaPRO. Check with the M-I SWACO plant in Deadhorse to see if a used fluid is available. Pump at highest rate practical. Reciprocate pipe while displacing. Make sure bit is on bottom when leadin4 edne of spacers and VertsaPRO exit bit. Calculate strokes and monitor returns at the flow line for oil mud returns. Electrical stability of the fluid can be used for the final confirmation of acceptable fluid purity Location North Slope Alaska Confidential Date: Ver 2.0, 12th February, 2007 Ens ~~~ Schlumberger Maaaiore 1 (P2) Proposal Client Field Structure 1 Slot Well Borehole UWIIAPI# Survey Name I Date, Tort 1 AHD 1 DDI 1 ERD ratio Grid Coordinate System, Location LaULOng Location Grid NIE YIX Grid Convergence Angle ENI ENI -Rock Flour Maggiore /New Slot Maggiore 002912334200 Ap p r°~ Maggiore (P2) /February 9, 2007 73.000° / 9581.60 ft / 6.207 / 1.92 NAD27 Alaska State Planes, Zone 04, US Feet N 70.00870970, W 149.29946584 N 5853179.410 ftUS, E 587722.270 ftUS +0.65832704° Survey I DLS Computation Method: Minimum Curvature / Lubinski Vertical Section Azimuth: 270.000° Vertical Section Origin: t N 0.000 ft, E 0.000 ft ~ ~ ND Reference Datum: Rotary Table ND Reference Elevation: 186.00 ft relative to MSL Sea Bed 1 Ground Level Elevation: 153.00 ft relative to MSL Magnetic Declination: 23.622° Total Field Strength: 57608.557 nT Magnetic Dip: 80.667° Declination Date: February 17, 2007 Magnetic Declination Model: BGGM 2006 North Reference: True North Total Corr Mag North -> True North: +23.622° Measured Vertical Gravity Comments inclination Azimuth Sub-Sea ND ND NS EW DLS Build Rate Walk Rate Northing Easting Latitude Longitude Depth Section Tool Face ft de de ft ft ft ft ft de de 1100 ft de 1100 ft de 1100 ft ftUS ftUS Klt U .UV U.UU L/U.UU -l iSb.UV KOP Bld 1.5/100 250 .00 0.00 270.00 64.00 300 .00 0.75 270.00 114.00 Bld 3/100 350 .00 1.50 270.00 163.99 400 .00 3.00 270.00 213.95 500 .00 6.00 270.00 313.63 600 .00 9.00 270.00 412.76 700 .00 12.00 270.00 511.08 800 .00 15.00 270.00 608.30 900 .00 18.00 270.00 704.17 1000 .00 21.00 270.00 798.43 1100 .00 24.00 270.00 890.80 1200 .00 27.00 270.00 981.05 1300 .00 30.00 270.00 1068.92 1400 .00 33.00 270.00 1154.18 1500 .00 36.00 270.00 1236.58 1600 .00 39.00 270.00 1315.91 1700 .00 42.00 270.00 1391.94 1800 .00 45.00 270.00 1464.47 1900 .00 48.00 270.00 1533.30 2000 .00 51.00 270.00 1598.23 2100 .00 54.00 270.00 1659.10 2200 .00 57.00 270.00 1715.74 U.UU U .VU U.UU U .UU -- U.UU U.UU U.UU ~ Di3DJl/`J.41 D25//LL.L/ IV /U. UU25/U`J/U VV l4J.Z`J`J4b5254 250.00 0 .00 0.00 0 .00 HS 0.00 0.00 0.00 5853179.41 587722.27 N 70. 00870970 W 149.29946584 300.00 0 .33 0.00 -0 .33 HS 1.50 1.50 0.00 5853179.41 587721.94 N 70. 00870970 W 149.29946845 349.99 1 .31 0.00 -1 .31 HS 1.50 1.50 0.00 5853179.39 587720.96 N 70. 00870970 W 149.29947629 399.95 3 .27 0.00 -3 .27 HS 3.00 3.00 0.00 5853179.37 587719.00 N 70. 00870970 W 149.29949196 499.63 11 .12 0.00 -11 .12 HS 3.00 3.00 0.00 5853179.28 587711.15 N 70. 00870970 W 149.29955460 598.76 24 .17 0.00 -24 .17 HS 3.00 3.00 0.00 5853179.13 587698.11 N 70. 00870970 W 149.29965881 697.08 42 .39 0.00 -42 .39 HS 3.00 3.00 0.00 5853178.92 587679.89 N 70. 00870970 W 149.29980431 794.30 65 .73 0.00 -65 .73 HS 3.00 3.00 0.00 5853178.65 587656.55 N 70. 00870970 W 149.29999069 890.17 94 .13 0.00 -94 .13 HS 3.00 3.00 0.00 5853178.33 587628.16 N 70. 00870970 W 149.30021745 984.43 127 .51 0.00 -127 .51 HS 3.00 3.00 0.00 5853177.95 587594.78 N 70. 00870970 W 149.30 96 1076.80 165 .77 0.00 -165 .77 HS 3.00 3.00 0.00 5853177.51 587556.53 N 70. 00870970 W 149.319 1167.05 208 .82 0.00 -208 .82 HS 3.00 3.00 0.00 5853177.01 587513.49 N 70. 00870970 W 149.30 1 1254.92 256 .53 0.00 -256 .53 HS 3.00 3.00 0.00 5853176.46 587465.78 N 70. 00870969 W 149.30151417 1340.18 308 .77 0.00 -308 .77 HS 3.00 3.00 0.00 5853175.86 587413.55 N 70. 00870969 W 149.30193133 1422.58 365 .41 0.00 -365 .41 HS 3.00 3.00 0.00 5853175.21 587356.92 N 70. 00870968 W 149.30238354 1501.91 426 .27 0.00 -426 .27 HS 3.00 3.00 0.00 5853174.51 587296.06 N 70. 00870967 W 149.30286957 1577.94 491 .21 0.00 -491 .21 HS 3.00 3.00 0.00 5853173.77 587231.14 N 70. 00870966 W 149.30338809 1650.47 560 .04 0.00 -560 .04 HS 3.00 3.00 0.00 5853172.98 587162.32 N 70. 00870965 W 149.30393767 1719.30 632 .57 0.00 -632 .57 HS 3.00 3.00 0.00 5853172.14 587089.80 N 70. 00870963 W 149.30451680 1784.23 708 .60 0.00 -708 .60 HS 3.00 3.00 0.00 5853171.27 587013.78 N 70. 00870961 W 149.30512391 1845.10 787 .93 0.00 -787 .93 HS 3.00 3.00 0.00 5853170.36 586934.47 N 70. 00870959 W 149.30575731 1901.74 870 .33 0.00 -870 .33 HS 3.00 3.00 0.00 5853169.41 586852.08 N 70. 00870957 W 149.30641529 WeIlDesign Ver SP 2.1 Bld( doc40x_100) New Slot\Maggiore\Maggiore\Maggiore (P2) Generated 2/9/2007 1:55 PM Page 1 of 2 Comments Measured Inclination Azimuth Sub-Sea ND 7Vp Vertical NS EW Gravity DLS Build Rate Walk Rate Northing Easting Latitude Longitude Depth Section Tool Face ft de d ft ft ft ft ft de de 1100 ft de 1100 ft de 100 ft ftUS ftUS CnQ CSIO LL33 .33 b25. UU L/U.UV 1 /33.bb l`J "I ~J.bb 15925.44 U.UU -tS9i5.44 --- 3.UU 3.UU U.UU bi1b3169 .U9 5t31)ti"L3.9/ N /U .UUS/0956 W 149.30663977 9-5/8" Csg Pt 2384. 97 58. 00 270.00 1814.00 2000.00 1027.03 0.00 -1027.03 --- 0.00 0.00 0.00 5853167. 61 586695.40 N 70. 00870951 W 149.30766656 Bld 1/100 3000. 00 58. 00 270.00 2139.92 2325.92 1548.61 0.00 -1548.61 HS 0.00 0.00 0.00 5853161. 62 586173.90 N 70 .00870927 W 149.31183128 3100. 00 59. 00 270.00 2192.17 2378.17 1633.88 0.00 -1633.88 HS 1.00 1.00 0.00 5853160. 64 586088.65 N 70 .00870923 W 149.31251209 3200. 00 60. 00 270.00 2242.92 2428.92 1720.04 0.00 -1720.04 HS 1.00 1.00 0.00 5853159 .65 586002.51 N 70 .00870917 W 149.31320008 3300. 00 61. 00 270.00 2292.16 2478.16 1807.07 0.00 -1807.07 HS 1.00 1.00 0.00 5853158 .65 585915.49 N 70 .00870912 W 149.31389504 3400. 00 62. 00 270.00 2339.88 2525.88 1894.95 0.00 -1894.95 HS 1.00 1.00 0.00 5853157. 64 585827.62 N 70 .00870906 W 149.31459675 3500. 00 63. 00 270.00 2386.05 2572.05 1983.65 0.00 -1983.65 HS 1.00 1.00 0.00 5853156. 62 585738.93 N 70 .00870900 W 149.31530501 3600. 00 64. 00 270.00 2430.67 2616.67 2073.14 0.00 -2073.14 HS 1.00 1.00 0.00 5853155. 59 585649.46 N 70 .00870893 W 149.31601959 3700. 00 65. 00 270.00 2473.72 2659.72 2163.40 0.00 -2163.40 HS 1.00 1.00 0.00 5853154. 56 585559.21 N 70 .00870887 W 149.3167 029 3800. 00 66. 00 270.00 2515.19 2701.19 2254.40 0.00 -2254.40 HS 1.00 1.00 0.00 5853153. 51 585468.23 N 70. 00870879 W 149.317 3900. 00 67. 00 270.00 2555.06 2741.06 2346.10 0.00 -2346.10 HS 1.00 1.00 0.00 5853152. 46 585376.54 N 70. 00870872 W 149.31 2 4000. 00 68. 00 270.00 2593.33 2779.33 2438.49 0.00 -2438.49 HS 1.00 1.00 0.00 5853151. 40 585284.17 N 70. 00870864 W 149.31893681 4100. 00 69. 00 270.00 2629.98 2815.98 2531.53 0.00 -2531.53 HS 1.00 1.00 0.00 5853150. 33 585191.14 N 70. 00870856 W 149.31967973 4200. 00 70. 00 270.00 2665.00 2851.00 2625.20 0.00 -2625.20 HS 1.00 1.00 0.00 5853149. 25 585097.49 N 70. 00870847 W 149.320427ti4 4300. 00 71. 00 270.00 2698.38 2884.38 2719.46 0.00 -2719.46 HS 1.00 1.00 0.00 5853148. 17 585003.24 N 70. 00870838 W 149.32118031 4400. 00 72. 00 270.00 2730.11 2916.11 2814.29 0.00 -2814.29 HS 1.00 1.00 0.00 5853147. 08 584908.43 N 70. 00870829 W 149.32193753 End Bld 4500. 00 73. 00 270.00 2760.18 2946.18 2909.66 0.00 -2909.66 --- 1.00 1.00 0.00 5853145. 98 584813.07 N 70. 00870819 W 149.32269905 3600ss 7372. 43 73. 00 270.00 3600.00 3786.00 5656.58 0.00 -5656.58 --- 0.00 0.00 0.00 5853114. 42 582066.59 N 70. 00870398 W 149.34463278 TD _ 11476. 79 73. 00 270.00 4800.00 4986.00 . . 9581.60 0.00 -9581.60 --- 0.00 0.00 0.00 5853069. 33 578142.20 N 70. 00869328 W 149.37597352 • WeIlDesign Ver SP 2.1 Bld( doc40x_100) New Slot\Maggiore\Maggiore\Maggiore (P2) Generated 2/9/2007 1:55 PM Page 2 of 2 Eli Pe~roleurn Schlumberger w"` Maggiore 1 (P2) FIE`G ENI -Rock Flour S,R`I~r"R` Maggiore Maynea: V r Sur/ace Location NAU2] Aia>ka Slale PMnes. Zore Oa U ee a Model BGGM 2006 Dq fl0 fiF/ -~ ).2001 nfiiig 595:11 )9 at NU9 6fitl COnv b. Sb~C811 ew Sim iVD Rey o taMVe MSL~ Ma9 Dec DSte. 5I609a6Yn1 sing 9U5 .v Date H 0 1200 2400 3600 4800 6000 7200 8400 9600 0 1200 O O N C 2400 m ~o U 3600 4800 ................................... Bld 1.5/100 f 3/100 0 1200 2400 3600 4800 6000 7200 Vertical Section (ft) Azim = 270°, Scale = 1(in):1200(ft) Origin = 0 N/-S, 0 E/-V 8400 9600 °• 1200 2400 3600 4800 ~~,~ ~~~o~eum Schlumberger WEU STRUCTURE Maggiore 1 (P2) IELD ENI -Rock Flour Maggiore Magnetic Paranrer~+rx Surface Locarron ka 9rale PNnes. Zorn Oa US 1 ear a anroii. Moser dGGM 3oVh Dp faXruay r]. 300i o rNS GnJ Canv . Sk~lr ~+w Sl+n ... e X aLOVe MSL) Mag Dec B3J 633 FDS.e Lon. Wta9 t/SB g)7 Eas~ng 3IrXUS Scale Farr Og999VB1a2 PMn 1200 n n n Z 0 0 N C O N 03 U V V ~ -1200 100 -8400 -7200 -6000 -4800 3600 -2400 -1200 0 Bld 1/100 Bld 31100: End Bld 9-S18" csg Pt KOP Bld 1.51100 • 1200 0 -1200 • 00 -8400 -7200 -6000 -4800 3600 -2400 -1200 0 c« W Scale = 1(in):1200(ft) E »> RE: Rock Flour #3--again • 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 maunder~~min.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 #l. 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 __ _ _ __ ~~~~ Q~` ~``~' 1 of 1 6/21 /2007 9:17 AM • • E1vI Petroleum Inc. Maggiore #1 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 4,500' 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/ZDLII•IDIL/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: 4,500' MD - 2,000' MD every 50' levels (50) 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 @ 4,500' 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 Real-time data monitoring: T'he Mudiogging data will be displayed in real time through the BHI Riglink AOGCC copies have to be sent directly Geochemical Samales: Isotubes: Frequeucy 100' MD to 2000' MD 500' 2000' MD to 4,500' MD Total Depth 30' (Increase amount in ZOI and Shows) ~ ~ 'TRAYSMI~"TAL LE'T'TER C~IECKLIS'T WE1;L NAIVIE /~ ,~ ~ ~ ~~~--/ss~~~ PTD~ ~ - D a~ Development Service Exploratory _ Stratigraphic 'Test Non-Conventional Well Circle 4ppropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ~ ADD-ONS TEXT FOR APPROVAL LETTER ~i'HAT ~ (OPTIONS) APPLIES MliLTI LATERAL i The permit is for a new wellbore segment of existing i i ~ we{( j , (If fast two digits in ~ Permit No. , API No. 'i0- - - iAPI number are ,' between 60-69) Production should continue to be reported as a function of the original API number stated above. .PILOT HOLE In accordance with 20 AAC 2~.00'i(f), a!( records, data and logs !acquired for the pilot hole must be clearly differentiated in both ;well name ( PH) and API number ' (50- - -_~ from records, data and logs ~ ~ acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION ~ 2~.0». Approval to perforate and produce /inject is contingent I upon issuance of a conservation order approving a spacing j exception. assumes the ~ ; = liability of any protest to the spacing exception that may occur. E - j DRY D[TCH ~ All dry ditch sample sets submitted to the Commission must be in SAMPLE 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 permit: Non-Conventional production or production testing of coal bed methane is not allowed Well ~ for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Com~a.nv Name) must contact the i Commission to obtain advance approval of such water well testing program. Rev: I25i06 C:`jody~transmittal_checkl ist • a ^^ 0 ' °' ~ : o t o, a ~, ', -°o c ~ ~ m ~ °, _ ~ ° Q a ~ ~ ~° ... ~- .>. 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U. c'n ~ U', U U ¢. ~ Q, ~ D; m' m' U; ~ y' g ~ a D. i/i; <°; U' -~ w Q w ! w w _ ~ O ~ N M V tf) (D f~ W Gl O ~ N M V u") (p I~ O O O N M V u7 CO 1~ W 07 ° ~ N M c} ~ C4 I~ W O ~ ~ ~ ~ r ~ ~ r <~- N N N N CV N N N N N M M M M M M M M M M U __ __ F' o o o O C fY6 N ~ N li ~ N U ~ ~ o ~ p ~ ~ p ~ ~ p ~ o'er ~ C ~ p •~ p d N N N if .~ N I ~ N ~ E J c c_ O ~ ~ ~ U W ~ '~ Q~ ~ G W i, O Q~ ~ Q Q~ i lL Q H i~ Q~ • ALASSA OIL ~1QD Gr~S COI~TSER`P.~7`I011T COMI~IISSI011T Mr. David Dougall HSE Manager Eni Petroleum 1201 Louisiana Street, Suite 3500 Houston, TX 77002 Re: Exploratory Well Maggiore # 1 • SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Eni Petroleum Permit No: 207-006 Surface Location: 1138' FNL, 402' FEL, Sec. 35, T08N, T11E, UM Bottomhole Location: 1138' FNL, 402' FEL, Sec. 35, T08N, T11E, 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. Please note that in addition to the proposed logging program, an openhole sonic or density porosity log must be recorded in the surface hole to enable evaluation of water salinity in shallow aquifers at this remote location. If formation testing is planned, a Sundry Notice (Form 403) must be submitted in advance of the operations. 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. When providing notice for a representative of the Commission to witness any regy,ifed test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). DATED this ~1day of January, 2007 J cc: .Department of Fish 8v Game, Habitat Section w/ o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA AKA OIL AND GAS. CONSERVATION COMMISSION PERMIT TO DR[LL ~ ~ ~~ 20 AAC 25.4Q5 ~~'~.~ +_~~ ~ 6:d.i~ i °,f ~ '~ ?~f17 ~~~~~~ U~ ~+ ~i$~ ~;l}f}~. G~mmis~ion 1 a. Type of Work: Drib Q Redrill ^ Re-entry ^ 16. Current Well Class: Exploratory ^ Stratigraph~ Test ^ Service ^ Multiple Znne ^ Development Oii ^ Development Gas ^ Single Zone ^ iC. Specify if w~l is proposed for. fiC QCa~~ Combed Methane [`] Gas Hydrates ~] Share Gates 2.Operator Name: Ent PeUroteum 5. bond: Blanket ., Single Well ^ Band No. RL 7 /• /$. 0~; 11. Well Name and Number, liAaggtore #1 3. Address: 1201 Louisiana St., Suite 3500, Houston., TX 77002 6. Proposed Depm: MD: 4,500' - TVD: 4,500" ' 12. FiekffPrx?I(sj: 4a. Location of Weil {Govemrrrental Section): Surface: ~ 402'FEL, 1138' FNL, Sec 35, T08N, R11 E, UM 7. Property Designation: ADL 390660 Exploratory Top of Productive Horizon: 402'FEL,1138' FNL, Sec 35, T08N, R11 E, UM 8. Land Use Permit: NIA 13. Approximate Spud Date: 717f2007 Total Deptlr 402'FEL,1138' FNL, Sec 35, T08N, R11E, UM 9. Acres in Property: 5760 14. Distance to Nearest Property: 5,768' 4b. Location c ~Il (State Base Plane Coordinates}: Surface: x- 587722„4 y- 58x2320.5 ' Zone- 4 10. KB Elevation (~gm above GL): 32,25 feet 15. Distance to Nearest Well ; 1b(itttiG.Bsei:"S.rc, miles ,~ 16. Deviated wells: NfA Kickoff depth; feet Maximum Rote Angle: degrees 17. Maximum Anticipated Pressures in psig (see Zt3 AAC 25.035) ,. rg Downhole: 2106 psi Surface: 1060 ps1 18. Casing Program: Speafir~tions Top -Setting Depth - Bothun Cement Quantity,. c.f: or sacks Hale Casing Weight Grade Coupling Length MD TVD MD TVD {including sEage data) Drivsrr 13-318" 681K L-80 t3TG 60` 0' 4' BO' 80` . Grouted to surface 12-1f4" 9~5f8" ~ L-80 BTC 2,0(NP 0` 0' 2,000' - 2,000` , 704 cu ft to surf +4096 19. PRESENT WELL COND ITION SUMMARY (To be cxunpieted far RedriN and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD {ft): Plugs {rrreasured): EtTec~. Depth MD (ft): Effect. Depth TVD (ft): Junk {measured): Casing Length Size Cement Volume MD TVD ConductorOStructural Surface Intermediate Production Liner Perforation Depth MD (ft}: Perforation Depth TVD (ft}: 20, Attachments: Filirxi Fee [~ BOP Sketch ~ Drilling Program ^ T'ime v. Depth Pbt [] Shallow Hazard Analysis ^ Property Plat ^ Diverter Sketch Q Seabed Report ^ Drilling Fluid Program Q 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: 22. 1 hereby certify that the foregoing is the and correct. Printed Name David Dougall Signature ~-' Date Contact 81N Penrose 258.3445 Title HSE Man Ptxxte 713-393.6122 Date t / J '~, ~ 7 CorrrsNssion Use Only Pemut to Drill Number. ~~-~ API Number; 5t?- DZ~1-233~Z'DV Permit Approval Date: a, ~ .See Cover letter for other requirements. Conditions of approval : it box LS Checked, watt may not be used to expksre far, test, ar produce cx~a{bed met ce, gas hydrates, or gas txx~tained in shales: Other: Samples req"d: Yes[~No ^ Mud ~9 req'd: Ya /s^~ No 3~- ~ HZS measures: YesQ~ Na© Directional svy req`d: Yes^ No~E 2 APPROVED BY THE COMMISSION DATE: ~~c.J ` O ~ , COMMISSIONER Form 10101 Revised 1212005 V ~ ~-Submit in irafe~,~ • ~~ 1201 Louisiana St Suite 3500 Houston, Texas 77002 - US.A. Phone (7 i 3j 393 6100 Fax {7' 13) 393 6395 January 27, 200? Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7~' Ave., Suite 100 Anchorage, Alaska 99501 RE: Application far Permit to Drill: Maggiore #1 Dear Nir. Norman, • J ~=' ; ~IaS~d~ ~~ ~: ~, ilds$ipt~'~' i Eni Petroleum. hereby applies far a Permit to Drill an onshore oiI exploration well south of the ICuparuk River Field on the North Slope. Eni plans to use Nabors Rig #27-E to drill, core and evaluate a vertical hale to 4,500', then permanently plug and abandon the well. Maggiore #1 will be drilled from an ice pad. situated at the end ofa 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 2S.OOS (a} and. (c) far your review. Pertinent information attached. to this application includes the following: 1) Farm 20-401 Application for Permit to Drill 2} Fee of $200.00 payable to the State of Alaska 3} A plat showing the surface location of the well 4) Diagrams and descriptions of the B4P equipment to be used S) Proposed casing program 6) Proposed cementing program, 7) Proposed drilling fluid program 8) Proposed drilling program 9) Shallow Hazards Evaluation l0) Abnormal Formation Pressure Evaluation 11) Schematic of the proposed wetlbore and completion 12) Eni dues not anticipate the presence of H2S in the formation to be encountered in this well. However, 2-125 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 Conunission: 1) Completion Report Bill Penrose, Drilling Engineer (2a ~C 2s.o7a~ (907 2ss-~ 2) Geologic Data and Logs Charles Russell, Subsurface Manager (20 AAC 26.071} (713) 393-6261 If you have any questions or require additional information, please contact me at (713) 393-6122 or Bill Penrose at (907 268-3446. Sincerely, ENI PETROLEUM David Dougall HSE Manager enclosures a ~'.~ _ _- cc: Matted Rivetti - Eni Bi11 Penrose -Fairweather • Maggiore #1 Planned Well Design wjp 11/10/06 n N ~~ey SJQp ~~a e oa o~• c~ a~ e~~ Gv~`~9y~ 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. El1i Pad Layout 1 / 8/ Project No. Checked By. 0 2006 Sheel No. File: Ice Road lc. a r~^ h~nw~ x r u '~'" ~ 1 ~ ` ~ ~ ~, ;u ~, gym,„ ~ ~, ~' ~ '~ n~ °' ~~'°,, ° ~ ~ ~ ~d ~". ~r ,. . , ~.. x, W K ~ ~~ ~ ~~ ~ ,~' fi s j ~ ~ ° .k~ - ~. 4 ,~ i ~. a ~ °~. - - ~ . . fit. ~ M r ~~ ~ a,, ~- a ` ~ ,~, .. ,~ ~ s ? f y ( '~ _~ i 7~ s a ~gfa w ~~ . Maggiore #1 ~ ~ ~ ` ~ ~- ~ s Latitude - 70 00' 31.35" ~ R ,~' ~ ,, ~~, ~ Longitude - 149 17' 58.08" ~" ~~° ~ ~~~"`"~' ~~ri~!~~' b ,~.° ~ ~*~., WGS 1927 '`- ~ ~ `j '~' :x'~ , ~.~ w„n~N~ ,~ ~.~ 1138 FNL, 402 FEL, T8N, R11E, Sec 35, UM '"" ' ~ ~ ' ~* ~ ~~ ~, a° ~~~,j~ e "~ ~ . 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UTM NadB] 2eneS full Scene GeoSX 1 0 1 2 3 Miles Rock Flour and Maggiore Prospects ~~~~~~~1~E~ Enl Petroleum ' • ENI petroleum Pressure Calculations, Drilling Area Risks and Waste Disposal Maggiore #1 Maximum Anticipated 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 o£ a) the formation pore pressure (less a full gas column to the surface) at 4,500' TVD, orb) 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 Rock Flour #2. Calculations for (a) 8-1/2" hole section MASP (pore pressure) _ (4,500 ft) (0.468-0.11) = 1,611 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 16 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'. Maggiore #1 will be drilled to only 4,500' 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 US Operating Company Inc. Maggiore #1 Casing 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' TVD Surface casing to stablize shallow formations, provide an anchor for the BOP stack and provide shoe strength in the event of a kick L_ _.J ENI Petroleum Maggiore #1 Drilling Procedure ~~ ~J 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'.f 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/LT, SK WP BOPE and test to 3,500 psi. 6. M/U 8-1/2" drilling assembly, clean out to float collar and test 9-5/8" casing to 2,SOOpsi. Drill out float collar, cement, float shoe and 10' of new hole. Conduct leak-off test. POH. 7. M/LT 8-1/2" drilling assembly. RIH. 8. Drill 8-1/2" vertical hole to 4,500'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. Snbject: RE: Rock Flour #3--again From: Bill Penrose <bill@fairweather.eom> Date: Fri, 19 Jan 20Ci~ 0~:~1~:O~t -900 Tee: T1~omas Maunder <_tom_mauncier~ti`~tin~in.stat~:ak.l~~? CC: ~twe Davies<"steti~c da~~~e, a a~iiiiiJistut~.ali.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 mau~sderG?admin.state.ak,usl 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 ',ItF #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 U ENI Petroleum Inc. Maggiore #1 LOGGING PROGRAM ,~q~ ~ 9 2007 Alaska Oil & Gas Cans. Commission ~€~choraga 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 / conltinuo/u-s. LWD log). Wireline Logg ~a '~,/-e- ~lorc~ a''c,c~S ~ ~ / t~~S~r.~cc,7 re=g.. Atlas ~~o vw i' r~~ • /9. d Contractor: Baker roi,Kc.cr~, ,.S~afl ~~c. ~~, ~ / 7 Lo interval: from total de th of 4 500' TVD to the 13.375" casing shoe at 2,000' MD / g p 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: 4,500' MD - 2,000' MD 2,000' MD - 100' MD • every 50' levels (50) 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 @ 4,500' 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 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 4,500' MD Total Depth 30' (Increase amount in ZOI and Shows) .~ i~~ 1 g ZOO( ~#~as~;a 0~~ l~~s' Goys. CQmmissi®n /~~c~~;ra~~ 4' 3 7/9' 2' 6 1/9' 2' 8 1/9' 3 5000/ GALE VALVE - 3ro• 3' 5000/ HCR VALVE 1' 10 S/B' J/9' ' - 2' KILL LINE J~z2~ 2' 8 1/9' J/!' _____________ ' 10 ]/9' CUSfOHER FURNISHED SURFACE DIVERTER CONFIGURATION H:\ACADFILE\27E\BOP\27E0301C.DWG, 12~07I01 01:02:51 PM 13 5/B' 5000/ HYDRA ANNULAR BaP BOLTI]) FIANCE SINGLE 13 5/B' 5000/ HYORIL NPL PIPE RAH BOLll77 FLANGE SINGLE 13 5/B' 5000/ HYORIL NPL BLIND RAH BODED FLANGE 4' 5000/ HCR VALVE - 4' CHOKE l9iE 4~ 5000/ GALE VALVE BOLTED FLANGE SINGLE 13 5/B' 5000/ HYORIL NPL PIPE RAH BODED FLANGE ADAPIQt SPOOL - HUB z FLANGE -21 1/4' 2000/ HYDRIL BOP/ONERfER FLG ;ATE :IUAIOR SURFACE DIVERTER PIPING CONFIGURATION PLAN VIEW IIOOFIED ONFRIFI! ~ (1!7 / CONFlaNiAIpN cwvmm cIA1p caralEClloN ro eaLnn rvNa 9MSFD ON4BIER /S PFB DCN /] 90VFAI1 ~ ocxuw ms~1c 9LSC9vllall ./~/~ Naben Almke OHBnq In:. ~~/~ YS23 C 9baeL SoOe 200 UW~9/~IAIVM~ N iconge~ Alaska 99503 907-t&5-8000 ~cr RIG 27E ' BOP STACK AND SURFACE DIVERTER i0E ___ NTS NaE JAN 91 ~ 27E0301D BOP STACK ELEVATION • b ~,. '_'F • • WELL SITE SURVEY SHALLOW DRILLING HAZARDS EVALUATION PROPOSED MAGGIORE #1 ALASKA STATE LEASE 390660 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 (400 to 2800' TVD). Our well plan is designed with this potential hazard in mind. Maggiore #1 is a vertical well and the proposed surface hole location will be 4050' FSL & 5790' FEL of Section 35, Township 08 North by Range 11 East (x=1352615.78', y=25486625.83', 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 400'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 2,400' 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 OA1 sandstone of the Schrader Bluff Formation is the target of this well. The. Schrader Bluff Formation contains significant reserves of heavy oil in the Orion, Polaris and West Sak fields. Oil was also found in surrounding wells. • • Geophysics The sparse 2D seismic grid 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 2D lines are enclosed for your reference. A Maggiore #1 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. USGS 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 1000 and 1500 ft (TVDSS). We expect the base of the permafrost in Maggiore #1 at around 1350 ft (TVDSS). Shallow Gas/Oil Accumulations The sparse 2D lines do not show any geophysical evidence of significant accumulation of shallow gas beneath the Maggiore #1 location: No amplitude anomalies, velocity sag or frequency / attenuation indicators are present from 2-D seismic covering the location. As reported in literature Maggiore #1 is outside the area associated with the presence of natural gas in the sands of the Sagavanirktok Formation (see enclosed map). Toolik Fed and Sequoia mudlogs do not show any shallow gas. ~ 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 Maggiore #1 well. Summary We have not identified from seismic or offset. well data any conditions beneath the Maggiore #1 location which could pose a prohibitive shallow or intermediate depth drilling hazard to the planned drilling operations. Natural gas hydrates are not likely in the sands and gravels of the Sagavanirktok Formation 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 Maggiore #1 well design and operational plan. • WELL SITE SURVEY ABNORMAL FORMATION PRESSURE EVALUATION MAGGIORE 1 LOCATION ALASKA STATE LEASE 390660 NORTH SLOPE, ALASKA The available geophysical data and proximal offset well data to the Maggiore #1 (4050' FSL & 5790' FEL of Section 35, Township 08 North by Range 11 East (x=1352615.78', y=25486625.83', 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 4200 ft SSTVD. ~' A seismic/well base map highlighting the area of 2D coverage, key seismic transect, key offset wells and the Maggiore #1 well location is included for reference. Also included is a pressure versus depth plot generated for the Maggiore #1 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 4200' within the area. Based on our analysis of the formations to be penetrated by the Maggiore #1, no overpressure is anticipated above the proposed total depth of 4200' 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 Maggiore #1 well location. All operations and engineering personnel have been advised of the anticipated geological drilling conditions. • • 0 0 500 1000 1500 2000 x c 2500 d 0 3000 3500 4000 4500 5000 Maggiore -_ so~~~ veio~ay 5000 10000 15000 20000 25000 I' • RF1 &Hemisprings Pressure Data 0 2000 4000 d ~ 6000 t Q D 8000 10000 12000 - -- - - ~ - ~~ --- + RF1 MW f RF1 PP -+- Hemisprings MW -~-Hemisprings PP -~- Colville High Regional Data 6.0 7.0 8.0 9.0 Pressure data ppg 10.0 11.0 12.0 • • DRILLING FLUIDS PROPOSAL ~ C1~11II ° ° LI~OO ~~~lUll~1 ~~a Maggiore #1 Exploration Well Name Signature Date Originator: Hal Martens Reviewed by: Chris Wallace Customer Approval: Bill Penrose/ Amjad Chaudhry Version: 1.3 Date: December 29, 2006 Location North Slope Alaska Confidential Date: December 29, 2006 • VIII I 9urmar y The Maggiore #1 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 of Area) _NERALIZED GEOLOGICAL FORECAST GEOLOGICAL FM LITH DESCRIPTION ' Permafrost:Conglomerate Unconsolidated fine to very coarse . gravel to 600' MD E - Predominantly clay from 600 - 1,950' TVD Coal seam at 1,400' TVD ' Base permafrost 1 ,700'S S Continued interbeds of sand, UGNU clays and siltstones with occasional shows of coal Sparadic shows of hydrocarbon are found within the UGNU Top of West Sak D D 8 B West Sak sands Upper West Sak & West Sak D & B are B hydrocarbon bearing ,West Sak Sands A (Base of the West Sak Location North Slope Alaska Confidential Date: December 29, 2006 • Ma lore #1 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 wef(bore 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 • • Ma lo re #1 Project Summary Casing Size in Hale Size in Profile Measured Depth ft TVD ft Mud S stem Mud Weight (p ) 13.375 n/a 100 100 n/a n/a 9.625 12.25 2000 2000 Spud 8.6 - 9.5 Na 8.5 4500 4500 FLOPRO 9.4- 9.5 Location North Slope Alaska Confidential Date: December 29, 2006 • • ff Maggiore #1 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 (Ib/100ft2) 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 • • ~ _~ Ma lore #1 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-Silfer- • 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. '/z" 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 • • Ma lore #1 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. /f 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 • • ' -- _-._ Ma iore #1 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 CFinay be needed. 9. Add SCREEN KLEEN (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 • Ma lore #1 Production Drilling Interval Drilling Fluid System FLOPRO NT Drill-in Fluid Key Products KCI, FloVis, DualFlo, Greencide, Lubetex, Klagard, CaCOs, 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/100ftZ) API Fluid Loss (ml/30min) Chlorides (mg/I) pH 2,000 - 4,500 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 • • ~ ~~ Ma lore #1 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 • ~ ~ ,,~ Ma lore #1 Production Interval Objective The production interval will be drilled to a TD of 4,500' 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 • • ~ ,_~- Ma lore #1 Production Interval Operations: 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 500 gpm (550 - 600 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 • • Ma lore #1 virtual Mvarauiics moaei II M~ SWACO ®1995-2005 M-I L.L.C. - •MeMMM~I LL C. VIRTUAL HYDRAULICS*SnapShoY Depth Geometry Angle (ft) MD/TVD Csg OD/ID (°) (h) (in) 0 45 90 9. 5" DP MD: 4500 R i Operator: ENI TVD: 4500 R Well Name: Maggiore #1 Bit Size: 6.5 in Location: North Slope Date: 9/15/2006 ~ Country:_ US PV (cP) Va ~ Hole Clean Pressure Distribution YP, LSYP (Ib/100ft') (ft/min) Index (%) ? 0 300 600 Bit = 32.9 Ann = 23 DS =44.1 Drilling Fluid FLOPRO NT Weight 9.5 Ib/gal Temp 120 'F System Data Flow Rate 500 gal/m~ Penetration Rate 100 tVhr Rotary Speed 80 rpm Weight on Bit 10 10001 Bit Nozzles 0.95 ins Pressure Losses Modified Power Law Drill String 326 psi MWD 350 psi Motor 250 psi Bit 245 psi Bit OnlOtt 100 psi Annulus 171 psi Surtace Equip 36 psi U-Tube Effect 20 psi Total System 1500 psi ESD ECD Cut Csg Shoe 9.62 10.42 10.54 TD 9.63 10.63 10.75 VaOH ~ Vxrsion J.0 Flla -ENI -1.MDa Location North Slope Alaska Confidential Date: December 29, 2006 Density (Ib/gal) • • Ma iore #1 M~ SWACO ~'i 995-2005 M-I L.L.C. 'MaA O1 M-I L.LC VIRTUAL HYDRAULICS' VRDH' DP __- _ M0: 4500 H ~ TVD: 4500 it Bit Size: 8.5 in Date: 9/75/2006 Operator: ENI Well Name: Maggiore Nl Location: North Slope Country: US ~.~ ~.l Hole o.~ a: NA~A ~~A~V1~4'1 P4 NOTE: In all cases where the flow rate is less than 550 gpm or drill rate exceeds 150 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 'L00 300 400 500 600 700 Flow Rate (gal/min) • • Ma lore #1 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 <15 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 @ 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 ~ ~ _. Ma lore #1 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. 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 9 518" Surface Casin , V1 Preliminary Job Design based on limited input data. For estimate purposes only. 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: martinl3Qslb.com < TOC at Surface Previous Csg. < 16", 65.# casing at 100' MD ss < Base of Permafrost at 1,800' MD (1,800' TV D) ". < Top of Tail at .r 1,800' MD < 9 5/8", 47.0# casing in 12 1 /4" OH '~~ TD at 2,000' MD (2,000' TV D) 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 @ 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 ft3/ft 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 Volume Time (bpm) (bbll (min) (mint Water 5.0 10.0 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 AS1 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 Maggiore #1 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 (907J 263-4207 martin13@slb.com a ~ ~ `~ ~~UATE Disclaimer Notice: This information is presented in goad faith, but no warranty is given by and Schlumberger assumes no liability far 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 he 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 wel I or wells might be affected by the treatment proposed herein it Is the Operator's responsibility to notify the owner or owners of the well 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 Maggiore #1 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 f 00.0 13 3/8 68.0 12.415 Landing Collar MD :1920.0 ft Casing/liner Shoe MD :2000.0 ft r~ ~` Casing/Liner MD OD Joint Weight ID Grade Collapse Burst Thread _ (ft) (in) (ft) (Ib/ft) (in) (psi) (psi) 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) (deg) (deg) (deg/100ft) 0.0 0.0 0.3 0.0 0.000 2000.0 2000.0 0.3 0.0 0.000 eni-maggioret.cfw;11d8-2006; LoadCase958Surf;Versionwcs-cem45_89 Page 2 • Client ENI Well Maggiore #1 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 '~ I r~~r Page 3 eni - maggiore t.cfiv; 11-26-2006; Loadcase 958 Surf; Version wcs-cem45_89 • • Client ENI Scgl~r~~r Well Maggiore #1 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Section 2: centralizer 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 t.chv: 11 d8-2006: Loadcase 958 Surf : Version wcs-cem45_89 Client ENI Well Maggiore #1 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 '~ I r~r MUDPUSH II DESIGN Fluid No: 4 Density : 10.20 Ib/gal Rheo. Model : HERSCHEL_B. k : 1.80E-1 Ibf.s^n/ft2 At temp. : 65 degF n :0.195 Ty :2.771bf/100ft2 Gel Strength : (Ibf/100ft2) Job volume :50.0 bbl ASL DESIGN Fluid No: 2 Density :10.70 Ib/gal Rheo. Model : HERSCHEL_B. k : 5.42E-3 Ibf.s^n/ft2 At temp. : 65 degF n :0.663 Ty :9.561bf/100ft2 Gel Strength : (Ibf/100ft2) DESIGN BLEND Name : G Dry Density : 199.77 Ib/ft3 Sack Weight : 94 Ib BASE FLUID Type :Fresh water SLURRY Mix Fluid :20.722 gal/sk Yield :4.45 ft3/sk Porosity :62.3 Density :8.321b/gal AS1 DESIGN Fluid No: 5 Density :15,70 Ib/gal Rheo. Model : HERSCHEL_B. k : 1.35E-3 1bf.s^n/ft2 At temp. : 65 degF n :1.068 Ty :5.431bf/100ft2 Gel Strength : (Ibf/100ft2) DESIGN BLEND Name : ArcticSETi Dry Density : 174.56 Ib/ft3 Sack Weight : 80 Ib BASE FLUID Type :Fresh water SLURRY Mix Fluid :3.536 gal/sk Yield :0.93 ft3/sk Porosity :50.8 Density :8.321b/gal Job volume :337.9 bbl Quantity :426.74 sk Solid Fraction :37.7 Base Fluid :20.153 gal/sk Job volume :22.6 bbl Quantity :136.45 sk Solid Fraction :49.2 Base Fluid :3.536 gal/sk eni - maggiore 1.c(w; 11-28-2006; Loadcase 958 Surf; Version wcs-cem45_89 Page 5 Client ENI ~ I r~~r Well Maggiore #1 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 ASi 22.6 200.0 1800.0 15.70 k:1.35E-31bf.s^n/ft2 n:1.068 Tv:5.431bf/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 AS1 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 D namic 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-maggiorel.ciw;11d6-2006; LoadCase958Surf;Versionwcs-cem45_89 • • Client ENI Well Maggiore #1 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf ft 0 O O 0 0 N 8 N O V' N- m a a` c c Q c C O Schl~rg~r 0 40 80 120 Time (min) Time (min) luids at 2000 ft r 60 _ 8~ Time (min) i~~ ~i ~ ~ 100 120 Ib/gal 8 12 -Hydrostatic - Nin. I-Ndrostatic - Max. Dynamic - - fuk1. Dynamic Frac Fbre 6 Fluid Sequence Dynamic Well Security O 0 N ~- O ~o C_ N E ~_ T ~ v O N C Page 7 eni - maggiore 1.cfw : 11-282006: Loadcase 958 Surf ; Version wcs-cem45_89 0 0 40 80 120 Time (min) 5950000 • 5900000 5850000 '------ 400000 40 CFR 147.102 500000 600000 700000 800000 .7 • 16613 FAIRWEATHER EXPLORATION ~RST NAnONA~ BANK A ~ A s K a PRODUCTION SERVICES'INC. as-s-'zs2 GENERAL ACCOUNT 2000 EAST 88TH AVENUE, SUITE 200 pA~ AMOUNT ANCHORAGE; AK 99507-3804 00 '_ 5100 PH.(90~ 258-344s , . 1/17/2007 m 0 PAY e One Hundred Dollars and 00 Cents. 9 m D U C m TO THE d ORDER `STATE OF ALASKA - AOGCC ~. OF 33'3 WEST 7TH AVE SUITE. 100 N ANCHORAGE AK 99501 USA ~' - Nr II'OL66L31t' ~:i25200060~: 0LL2 823 Oli' • ~ ~'RANS1dIIT'T'AL LET"I'Ela C~IECKLIS~' /~ WELL NAME f"( ~~"~ / w/ Development Service Exploratory Stratigraphsc Test iYon-Conventional Wett Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK I ADD-ONS ~ TEXT FOR APPROVAL LETTER WHAT ~ (OPTIONS) ~ APPLIES l ~ MliLTi LATERAL ~ The permit is for a new welibore segment of existing ~ ~ well (If last two digits AP[ b in ~ Ap[ No. 30- - - Penn~t No. er num ~ between 60-69) are ,Production should continue to be reported as a function of the i original API number stated above. PLOT HOLE In accordance with 20 AAC 23.003(f), all records, data and logs !acquired for the pilot hole must be clearly differentiated in both ' PH) and API number ;well name ( ~ i i~ (30_ _ -_) from records, data and logs acquired for we[( 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 j j I exception. assumes the ~ ~ i liability of any protest to the spacing exception that may occur. ,DRY D[TCH Af[ dry ditch sample sets submitted to the Commission must be in SA!~IPLE I no greater than 30' sample intervals from below the permafrost or from where samples are Erst caught and 10' sample intervals j ;through target zones. I ;Please note the fo[Iowing special condition of this permit: Non-Conventional ~ production or production testing of coal bed methane is not allowed Well ~ for (name of well) until after (Companv Name) has designed and implemented a water we[I testing program to provide baseline data on water quality and quantity. 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