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207-030
Image jest V1/ell Hist®ry File ®~er age xHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. (~ ~ - ~, j~ Well History File Identifier Organizing (done) o,.o,aa, iiiniiiiuiiiiuu _ Re~~~e~ea iuuiiiiiiuuo RE AN DIGITAL DATA OVERSIZED (Scannable) Color Items: ^ Diskettes, No. ^ Maps: r ~Greyscale Items: ` ~ " ^ Other, No/Type: ^ Other Items Scannable by v nner a Large Sca ^ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: 8Y: Maria Date: ~ /s/ Project Proofing III II'llllllll VIII BY: Maria Date: ~ /s/ Scanning Preparation ____~__ x 30 = ~~ + _~. =TOTAL PAGES ~~ (Cunt ~~es nit include cover sheet) BY: Maria Date: ~' ~. ~ /~ ~ /s/ Production Scanning Stage 1 Page Count from Scanned File: ~ ~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~/YES NO BY: Maria Date: ~ ~~ ~ /s/ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I II II II I II II I I III ReScanned III 111111 VIII V III BY: Maria Date: Comments about this file: a „~~e~,~, iuuiiiiiiiuiim P 10/6/2005 Weil History Fiie Cover Page.doc • • ,y~,+M. ~ i ,: _ ~. .~. ~s s ~, .. ~ ~: ,. ~F ~, ~~ ~ ~ ~~~,- { ~ . ~ ~, ,. ~ ~~~ ~~ ~ MICROFILMED. 6/30/2010 D O NOT PLAC E ANY NEW MATERIAL .UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfitm_Marker.doc Maggiore #3 '~ Subject: Maggiore #3 From: Bill Penrose <hill~~>,fairweather.com> Date: Mon, OS Mar 2007 14:32.:5? -0900 ''~ T'o: Thonias~laun~er<toln nZaunder~c~admin.state.ak.us> Tom, Eni Petroleum has decided to NOT drill the Maggiore #3 this year. They will instead release the drilling rig and end their exploration drilling season. Please cease work on the Commission's review of the Maggiore #3 Application for Permit to Drill and accept our thanks for the work you've already put into it. Regards, Bill Penrose Vice President /Drilling Manager Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 907-258-3446 1 of 1 3/6/2007 9:31 AM SARAH PAL/N, GOVERNOR ~~yTpp~~ p ~7~T ~+~+ AT Mr. David Dougall HSE Manager ENI Petroleum 1201 Louisiana Street, Suite 3500 Houston, TX 77002 Re: Exploratory Well, Maggiore #3 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ENI Petroleum Permit No: 207-030 Surface Location: 927' FSL, 1986' FWL, Sec. 5, T08N, T11E, UM Bottomhole Location: 927' FSL, 1986' FWL, Sec. 5, T08N, T1 lE, 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 open hole gamma ray, resistivity and sonic or density porosity logs must be recorded from the conductor pipe to the surface casing shoe 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 207-030 Maggiore #3 EM Petroleum 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,x,59-3607 (pager). Y Chairman DATED this day of March, 2007 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL ~n aar^ ~~ nn~ 3rd. ~1~~ o Y 2007 ~iaska Oil & Gas Cans. Commission Anchorage 1a. Type of Work: Drill Q • Redrill ^ Reentry ^ 1b. Curr~t Weli Class: Expkxatory ~ Stratigraptuc Test ^ Service ^ Multiple Zone ^ Developm~t Oil ^ Development Gas ^ Single Zone ^ 1c. Spektify if well is proposed for. Coalbed Methane ^ Gas Hydrates ^ Shale Gas ^ 2• ~ ~~: Ent Petroleum 5. Bond: Blanket ~ Single Well ^ Bond No. RLB00086?~'r ,6D 3•L'o? 11. Welt Name and Number: Mappiore ~ 3. Address: 1201 Louisiana St., Suite 3500, Houston, TX 77002 6. Proposed Depth: MD: 4,000' ~ TVD: 4,000' ` t2. Field/Pool(s): 4a. Location of Weil (Governmental Section): Surface: 1,986' FWL, 927' FSL, Sec 5, TO6N, R11E, UM 7. Property Designation: ADL 390658 Exploratory Top of Productive Hori~: 1,986' FWL, 92T FSL, Sec 5, TORN, R11E, UM 8. Land Use Permit NIA 13. Approximate Spud [Pate: SRiZ0fi7 Total Depth: 1.,988' FWL, 927' F8L, Sec S, TOSN, R11E, UM 9. Acres in Property; 5760 14. Distance to Nearest Property: 4,752' 4b. Loation of Weli (State Base Plane Coordinates}: Surface: x- 568678.2 y- 58761K.9 Zane- 4 10. KB Elevation .~" /42..af' wJ~ (Height above GL): e2' t ~~ 15. Distance to Nearest Welt Wi~ir~-Beet: 6 miles 16. Deviated welts: WA Kickoff depth: feet Maximum Hole Angie: degrees 17. Maximum Anticpated Pressures in psig (see ~ AA 35) Do+nmhole: 1872 psi Surface: 1 psi '" 1k"{3D ~ ~ , 18. Casing Program: Specifications To p -Setting Depth. -Bottom Cement Qu~tity, c.f. or sacks Flofe Casing Weight Grade Coupling Length MD TVD MD ND ('including stage data} t3-3/8" 88~t L-90 BTC 80' 0' 0' 100' 100' Grouted to aurfgce 12-114" 9.518" 40>~ Lift BTC 2,000' 0' 0' 2,000` • 2,0~' • 1774 cu ft to surf (incl xs) 19. PRESENT WELL CONDITION SUMMARY (To be o~mpleted f or Redrili and Re-Entry O perations) Total Depth MD (ft~ Tofal Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft); EfFecx. Depth TVD (ft): Junk (rr~asured): ~in9 She Cement Volume MD TVD Condudor/SVuctural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ^r BOP Sketch Q Drilling Program Q Time v. Depth Plot ^ Shallow Hazard Analysis ^ Property Wat Q [>iverter Sketch 0 Seabed Report ^ Drilling Fluid Program ^ 20 AAC 25A50 requirements ^ 21. Verbal Approval: Commiss~ Representative: 22. I hereby certify that the foregoing is true and correct. Printed Name David Dougall Signature ~,~.rr,~ 0 Date Contact Sltt P+eruose Z58-3446 Title H8E Manager Ptxme 713.393.6122 Elate ~/ ~l boo ~ Comm ission Use Only Pemat to Drill Number. ,~~7~~~ API Number: 50-t~2-- - Z„337 / ^Q~ Permit Approval pate: See cover letter for other requirements. Conditions of approval : If box is checked, wail may not be used th explore for, test, or produce coalbed me ne, gas hydrates, or gas contained in shales: Other. Samples req'd: Yes[~No^ Mud log req'd: Yes[~No c ~t ~`*•~~~i"~~'~'` ~~ `~~ HzS measures: Yes^ No[~ Directional svy r~'d: Yes^ No ~' ,~.CIt ril~Z .$f V' ~~~~ ~~3. APPROVED BY THE COMMISSION DATE:~"~~0~ ,COMMISSIONER oz Form 10-401 1y~OQ~ ' ~ ~ ~ ~~ `- Submit in Duplicate • i 201 Louis~na St Suitt 3500 Houston, Taws 77002 - US.A. Phone (T 13) 393 6100 fax (713) 343 6395 March 1, 2007 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7`" Ave., Suite 100 Anchorage, Alaska 99501 E~EIVED R MAR 0 1 2007 Alaska Oii & Gas Cons. Commission ~ _. _ ,, » Anchorage RE: Application for Permit to Drill: Maggiore #3 Dear Mr. Norman, Eni Petroleum hereby applies for a Permit to Drill an onshore oil exploration well south of the Kuparuk River Field on the North Slope. Eni plans to use Nabors Rig #27-E to drill and evaluate a vertical hole to 4,000', then permanently plug and abandon the well. Maggiore #3 will be drilled from an ice pad situated at the end of a spur road off of a 23 mile Long ice road from which additional welts have been 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 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill 2} Fee of $100.00 payable to the State of Alaska 3) Schematic of the proposed wellbore and completion 4) A sketch of the Pad Layout 5) A plat showing the surface location of the well 6) Proposed casing program 7) Proposed drilling program 8) Diagrams and descriptions of the BOP equipment to be used 9) Shallow Hazards Evaluation 10) Abnormal Formation Pressure Evaluation 11) Proposed drilling fluid program 12) Proposed cementing program 13) Eni does not anticipate the presence of H2S in the formation to be encountered in this well. However, H2S monitoring equipment will be functioning on the rig at all times during drilling and completion operations. • Mr. John Norman Page 2 • 14) The following are Eni's designated contacts for reporting responsibilities to the Commission: 1) Completion Report Bill Penrose, Drilling Engineer (20 AAC 25.070) (907) 258-3446 2) Geologic Data and Logs Charles Russell, Subsurface Manager (20 AAC 25.071) (713) 393-6251 If you have any questions or require additional information, please contact me at (713) 393-6122 or Bill Penrose at (907} 258-3446. Sincerely, ENI PETROLEUM David Dougall HSE Manager enclosures cc: Matteo Rivetti - Eni Bill Penrose -Fairweather Maggiore #3 Planned Well Design rls 2/23/07 ~~e~ d SvQp ~\'~ Ooh food ~e Jrd~ h Q 12" berm mm m~ ~~~ . y~ecR` Opp ~~e i J~~~~~ ~ G °k l~~ °° IC~i ~o ~~~ ~ o Road :f~y m ~ ~~ i ~ Ga~~ e~a0 Q~~ Notes: ,~ o0 sOO ~`eaeO~ 1. Ice pad is 6" thick except under 'ad . rig components and in cuttings berm °fo„ where it is 12" thick. °~ sop y 5ro~ 2. Ice road is 6" thick and 32' wide. 'OPS ns 3. Pad is oriented such that prevailing winds keep rig and well emissions away from living quarters. All project ice pads to share this orientation. Pad Layout ~p'tll Project No. Checked By: 02/27/2007 Sheet No. File: y~ '~' ~~ ~ tra `~tl':' F~'~9 .A t ~'.a' Kt''~~ 9' ` ~~ ~a 1 I _ f t ~ { ~ . ~~ ~ 4+' n. 1 ~ ..~~ ~ ~, .~ ~~plne Road ~ ~a~ ~ ~ ~' n ,j ~' { _ C~: ~l" K; 4 d -; fig, '~ ,, j~F a, 1. ~` '~ " F 'a ,d~ Ci",''-n-J ~ k~4~~1~j ,~ '~5 `~~+~~,a: . 1 ~ t~ i F.~~~~~i~t ~ ~~ 1`~,~ a ~ t>.~, ~'" ,. ~ -,', I 5:.:1 e Eap~ rr*~ .1 Ili ~~~~ ~ .a i 1 p~~ ~, z ~~ ~" {f f~~ ~ .. 11 '~*,~ ,~a. '~ ~ s ,. s ~'. ~ u.~,~,°,~a,,, ~~ ~'b`.~' ~tt~ ~ i ~~ i~ ~ tire.%g t, ., ., n _ e ~ 'gYTF ~ n~~ ~ 1 C rr^" r /' t t f~ 1 ~ x: h .1 ~ ~' .. :t i. n ( ~'~ ,Yj fr ~~ ~uF`eY~' YMr "'t 3 ~ 4;~ ~~~~~~ % ~ 1 g Mf p } n e rw~ ~."~ ~ ~~ ~tg ~~ fig" a ~ ~ z •! r ~ ~ , ;FYI ~~ ~ .,, '~, ~ a:g i'". f,r~ A t` - s. ~~~~ .. ~~~~, ~~ ~ " ~ _~ .. ~ yiJ, ~y •'s, ~. (` ~~ a _ -- ~~ ~ gall" ~~; ,, ~ .'~ - ,- • . r~ arylCy p . .~ f ,:. :. ~' ~! t ~1 ~~=~ ,, `, ; `. - c it /1 x ,,F r ~` ,~ f~ 'R { Ty ~, x n Fri M i E G~ A ~ 4s . 1 ". M4"" y ~ b yP't. /~"/ ~ ~ q .de A *:: i ~ ~ K .. ... 57E .7~~ ~M ~i~" ~,./ ' / .t•~ ry ~ pµ. ~ 14 f ~ V 1~" +6 " / fi d ~ /~" /~ '~~+t a ~'~ z !Y / y 1 1` ~ `~; ~ ] ~,; >N , r .i z Win., ~ ~ °a ~~ F. } f I I~i~ It 1`. x ~ ~'`_°9 r 1 _ r~ ~; ,~,.,,q~ty ~~ > y ~'~r 1 w,3~~ ~ aqp, tallEli .i`T, 4r t.' ~,~, ~ , ., . t} t, _- ~ r T - :. _ t ,. ~„ , _ _ Lp°ntl Lbllib PMt° fmm nu°uq ], iM° w.i...i~., -'° •~ ° ~ •• ant orpn d m 1°m gaNa °~°~•°°°_°~° 1 Rock Flour and -nr °y, ,_,~., Fu Il SUrr GaNill -u: `::: ti .., Maggiore Prospects ,,,,, ,,,, 1 0 t 2 3 Mlles E Eni Petroleurm ~u~~E ~ ,. ~ .. r t - 1 •" - ~' ~ p 1 1 a p' .. , , # ~ ,. . _ . "~1 ' k ' ~. - . A ~ - r. _ • .. ., . .. y s.. ,~ r ~ ~ ~~~ ~' ~ t z • ~ • r.f ~.~ ~ ,~ - . _ ~~~ Maggiore #3 ~~~~~~,` . ~. ,, ~~~ . ~ ~ Latitude - 70 04' 19.56989" °~ ~,~ ~ ~ Longitude - 149 26 59.56784 '''~ ~~ ~.,~+ ,~;. ~~,~ ' 3 WGS 1927 ~~'~ ,-~ ,- .~ _ F'~.• ~ ~~~ `''~. 3 927 ESQ, '! 986 Fi~B~., TC+8~i, ~~'i E, Sec ~, JM .~ .. ~. e - , .. __ ~ } 1 r ~ _ ~' ~ ~ ~ ~ 1. • ~ . ~ ~' d .,, ~ • ~~ - " . ~;,~,F .~. ~ . III ~ ~` - .~ r ~ ~ . ~ b+L. -s l v ~ J 1~ .r. ~_ - ~~ s . _ ~ •~ T. --_.. _. --- 4 .• ti _ -~ ~~~• ~ ~ ~ .~ ~ ~~' a , .; ~ ~ ter? +e' 4~ ~ ~ ;~ :~ ~ _ ' ~ .~ r r ~~ 1 R ' ~ I .~ B. ., 1 S..k,t. J ~.~ .r`1 , ~~ s # t ~ ~~ r ~a, ~ e +-~ . 1 6 ~~ ,. .. '. ,.tip ~~ y- ~ T - ~ ~ ~. - - ~~ ~ _ i ,. ' ~ a '' ~ _~~~" Legend Satellite Photo from August 3, 1999 PanSharpenedst tt Sm pixels Ma lore #3 Pros ect ~fl~ ~fll~~~ ~ w~~~~.~ 99 p Projection: UTM Nad83 Zone6 -"`5""'°'°R°'° Full Scene Geotiff ~''~' Eni Petroleum Eni ~ r ENI Petroleum Pressure Calculations, Drilling Area Risks and Waste Disposal Maggiore #3 Maximum Anticipated Surface Pressure: 8-1/2" Hole Section The maximum anticipated pressure (HASP) 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 4,000' TVD, orb) the f acture pressure at the 9-5/8" casing shoe at 2,000' TVD. -r~c~~r~ Qt~~ss~c-~ 1.~~~~~.o.. ~ r~.~~c~.'~:~~ b~ ~C~CC 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 i~~rl leak-off test (13.0 ppg or 0.676 psi/ft) conducted at 2,018' in the Maggiore #1. Calculations for (a) 8-1/2" hole section ~ HASP (pore pressure) _ (4,000 ft) (0.468-0.11) = 1,432 psi Calculations for (b) HASP (fracture pressure) _ (2,000 ft) (0.676-0.11) =1,132 psi Thus HASP in the 8-1/2" open hole section is 1,132 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 Maggiore #1 located approximately 6 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 #3 will be drilled to only 4,000' TVD. so will not encounter that problem. Nevertheless, the drilling crew will be kept aware that mud weight increases may be 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 #3 Casing Properties and Design Verification Casing Performance Prooerties Internal Collapse Tensile Strength Size Weight Grade Cnxn Yield Resistance Joint Body TVD MD (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 Design Safety Factor* T B 13 15.5 C 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 • ENI Petroleum Maggiore #3 Drilling Procedure • 1. Prior to moving in drilling rig, excavate and install cellar then drive and grout 13-3/8" conductor to 100' below ground level. 2. Move in and rig up Nabors Rig # 27-E. Install diverter on 13-3/8" conductor and ~"~O~ function test. lj ho~L, ~r.,~, yy~pr~ ~ r-Gri iS~ris+ .Sarr~lG. Cs~r' ~~•K~s~ dS 1"tJ4s! ~~ ~KLT ~t.. 3. Drill 12-1/4" hole to +2,000'. Gu= aired ~rtr„.~„ ~,~~ ~,~,,. vsli„~..,~_ ~~~ 4. Run 9-5/8" 40#, L-80, BTC surface casing an~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/IJ 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/IJ 8-1/2" drilling assembly. RIH. 8. Drill 8-1/2" vertical hole to 4,000'TD. 9. At TD, condition the hole and run open-hole logs. 10. At the conclusion of logging, plug and abandon the well per AOGCC regulations. ~~ ~~~~ r /s s/e' aooo/ NPOXI~ AMN1W1 aDP ah•~-------------------- eouEn RNiS ! s h' I SRgIE 13 S/a• 5000 IfiDRL MR PIPE RW L La'{----'~-~"----'-'----- -- I aouEO P1AlIOS C FIVE' I SINGIf t3 b/a• EOOOI 1f10RM.1Pl lLa1D MU • ' ~ 3000/ CNE IPLVE 3 ~~ ~ aouEO RANGE 4' SWOP FICR WLVE 3• ~ fICR ~~ t' to yh• --~- F--~- 4• CNOaE UNE 1 ~___- ` __ `-~-_-- ' a' 5000] OA/E VALYE 2~ K LL I1NE ~ OOEIED RANGE T Y a ~/!' f 50161E 13 5/0. 5000j NY010L I!L PIPE IOW ~~_________-____~______ ~~ H~YISE 10 7/Y AOAPIFR SPOOL - HUB x RANGE •71 1/4• E000t NYLNL eaP/aAExlel RC SURFACE DIVERTER PIPING CONFIGURATroN PLAN VIEW 1;911:~d~~7i'1~(:~i~;~~I~T~` ~Id~IL7~~w" N:{ACADFILEI2~EIEOP127E0307C.DIYG,12~07/01 01:02:51 PM ~>E nytmR m -_ a ~~~F ,.. ~. S, y ' ~ ;.'w~. - r ' M z. t .~ < +, , E ,,~ `,, ~ ~~~,i"° ~~~; ,! ~ ~ ~~+~, •~ • ,r t, M.,; ,_._ ~ ..~. ~ 1. i m t m i ®1 ~r~ ¢¢ r, ~;~ ~, i ~ ~~` m 2 ~ ~ m _~ > ~~ m c ~ ~ ~p Z ~Z • • WELL SITE SURVEY SHALLOW DRILLING HAZARDS EVALUATION PROPOSED MAGGIORE #3 ALASKA STATE LEASE 390658 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 #3 is a vertical well and the proposed surface hole location will be 927' FSL & 1986' FWL of Section 5, Township 08 North by Range 11 East (x=1334730.437', y=25510537.433', 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 OA 1 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 #3 interval velocity/pressure ~ profile was constructed by integrating all available offset logs, subsurface pressures and seismic data and is attached for reference. Potential Shallow Drilling Hazards Permafrost The permafrost thickness is characterized by high-resistivity and high-velocity logs and it is easily recognized in the wells. In the onshore seismic the base of the permafrost is not associated with a unique strong reflector (like the Bottom Simulator Reflector in the offshore seismic) and it is not easily interpretable. The analyzed wells show a progressive deepening of the base of the permafrost in a north-east direction. 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 #3 at around 1360 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 #3 location. No•amplitude anomalies, velocity sag or frequency attenuation indicators are present from 2-D seismic covering the location. As reported in literature Maggiore #3 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 #3 well. Summary We have not identified from seismic or offset well data any conditions beneath the Maggiore #3 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 #3 well design and operational plan. • s WELL SITE SURVEY ABNORMAL FORMATION PRESSURE EVALUATION MAGGIORE #3 LOCATION ALASKA STATE LEASE 390658 NORTH SLOPE, ALASKA There are no available geophysical data and proximal offset well data for the Maggiore #3 well (927' FSL & 1986' FWL of Section 5, Township 08 North by Range 11 East; x=1334730.437', y=25510537.433', NAD27, UTM Zone 6) which could help to examine and evaluate for potentially over pressured strata. However, on a regional basis the examination and evaluation of surrounding offset wells suggest that formation pore pressure increases at a normal gradient with depth and abnormal pressure is not anticipated to the proposed total depth of 4000 ft TVDSS. A seismic/well base map highlighting the area of 2D coverage, key seismic transect, surrounding offset wells and the Maggiore #3 well location has been generated for reference. A pressure versus depth plot generated for the Maggiore #3 well from available geologic, petrophysical, engineering and geophysical information is included for reference. The plot depicts increasing formation pressure along the "x" axis versus true vertical depth on the "y" axis. Examination of all velocity, density and MW data from the offset wells show a general increase of internal velocity and pressure with depth to the limit of penetrated formation . below 3800' within the area. Based on our analysis of the formations to be penetrated by the Maggiore #3, n_o overpressure is anticipated above the proposed total depth of 4000' TVDSS. 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 5900' to 10930' TVD. Rock Flour #2 and Rock Flour #3 have been analyzed to define the compaction trend of the area (on a regional basis). See attached chart in Appendix showing Formation Pressure from Hemi Spring State, RF #1,2 wells (with Hydrostatic in PPGE). Rock Flour #2 reached a TVD of 4,332' (9.4 ppg MW) while Rock Flour #3 was drilled to 4,277' TVD (9.4 ppg mw). Both of these wells exhibit normal compaction trends (see attached depth vs. pressure chart at the end). As it is general practice to drill slightly overbalanced, in situ pore pressures are likely less than the observed mud weights. Both wells were drilled with 1.2 ppg over balance. In summary, abnormal formation pressure is not anticipated beneath the proposed Maggiore #3 well location. All operations and engineering personnel have been advised of the anticipated geological drilling conditions. • • • • • • ~~ ~n~ ~u~ Rock Flour #2 and #3 pressures 3,000 ~ -- ~ Sa3 ~..5_... ~ ~fl:~A- --___-~ 3.100 3,200 3,300 ~ 3,400 N N > 3,500 - 3,600 D 3,700 3,800 - 3,900 - -- 4,000 1,200 ` ~ ~ ~ 3300' sd ~ ' ~ ~ ~ ~ ~ • ~ •3400' sand , ~ ~ ~ • above Na oil j ~ `~ i \ ~ \ ~ ~ above Na i ~ •. L , _ ~ _._~ _.._ _ • Na sand ~~ ~ Water Sand ~ ` ' ~ • Nb sand ~• ~ . 'jam ` _-------___-__ _ ~ Water Sand ' ~ _._.__; .~ _ . _ . __: • OA-? sand ~ ~ `•~ ~~ \ ~ OA sand ti •~ SB Sand , ~~ !; .~ Series9 ---- ~ ` ~.` +OB sand ~ ~ Na Sand • ~ ~ ~ ' ~ 8.0 `~ ~ Nb Sand '.\ ~~ 'to_O ~ 9.5 i ~ ~~ '~ I .. ~ ~ ~ ~ OA-1 Sarxi ~ ~ ; i ~. ~ \ •\ -- - --r _,__ ~ '~ ` OA Sand ~ ` ~ '• i \ ~ ~ OB sand .~~, ~ , \ ` `•~ a --- 4 ~~ -- 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 Formation Pressure psia • • ENI Subsurface RF_3 Pressure data_02_05_07 AA sands Hyd • • Maggiore #3 DRILLING FLUIDS PROPOSAL ~ CI~11II ° ° LIB oO~~G~lUllnl ~in~u Maggiore #3 Exploration Well ~:~ ~ ~, -~ _ ~. --~•~ _:..,, Name Signature Date Originator: Chris Wallace Reviewed by: Customer Approval: Bill Penrose/ Ron Stadem Version: 1.0 Date: 27 Februar , 2007 Location North Slope Alaska Confidential Date: Ver 1.0, 27th February, 2007 ~ • Maggiore #3 Well Summary The Maggiore #3 exploration well is to be drilled as a "grassroots" vertical well. Production zone target is to be a West Sak /Schrader Bluff equivalent sand. Planned pore pressures of 8.6 - 9.0 EMW are to be expected and are to be verified ~ based on Maggiore 1 logs. Maggiore 1 was successfully drilled with density of 9.4 ppg. Generalized Geology and Formation Tops (Typ~~ai of area) FORECAST GEOLOGICAL FM LITH DESCRIPTION ' Perm afrost:Conglomerate Unconsolidated fine ' - to very coarse ~ ~ -. gravel to 600' MD a "•' • Predominantly clay from 600 - 1,950' TVD Coal seam at 1,400' TVD Base permafrost 1.700'SS 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 3ase of the West Sak Location North Slope Alaska Confidential Date: Ver 1.0, 27th February, 2007 f ~ Maggiore #3 Fluid and Drilling Concerns - Hole stability throughout the drilling, evaluation, and casing/liner running phases of the operation. - Hole cleaning and wellbore conditions throughout drilling operations. - Fluid and wellbore quality for the 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. Project Summary Casing Size in Hole Size in Profile Measured Depth ft TVD ft Mud S stem Mud , Weight 13.375 n/a a~. ~~` 100 100 n/a n/a 9.625 12.25 2,000 2,000 Spud WBM 8.6 - 9.5 Na 8.5 4000 4,000 FLOPRO 9.4- 9.5 Location North Slope Alaska Confidential Date: Ver 1.0, 27th February, 2007 r • _ .~- Ma lore #3 Surface Interval Drilling Fluid System Spud Mud Key Products Gel, Caustic, Gelex, Pac Supreme, Duovis, Soda Ash, Bicarb, SCREEN KLEEN, DrillZone Solids Control Shakers, Mud Cleaner, Centrifuge Potential Problems Running gravel, unconsolidated sand, clay Losses or wallcake build u in the U nu INTERVAL MUD PROPERTIES Depth MD (ft) Mud Wt. (ppg) Funnel Viscosity Yield Point (Ib/100ftZ) 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: Ver 1.0, 27th February, 2007 • • Maggiore #3 Recommended Solids Control Equipment Shakers- • LO/TO Shakers • Replace all decking rubber on the ALSII or equivalent shaker beds. This will allow for optimum screen performance during drilling operations. It is important to develop a good preventive maintenance schedule which includes replacing the decking rubber before it becomes a performance related issue. • Install XR Magnum screens (84-110 mesh). Ensure screens are properly tensioned, per M-I Swaco's best practice suggestions. Spray down new screens with fresh water before operating the shakers. • Set counterweights to 95% (8 G's) for optimum performance. • As fluid shears, screen up as necessary to higher mesh screen sizes. • Ensure jacking system on ALSII shakers enables the fluid to flow to the center of the screens, adjust and lock as necessary. De-Silter- • Ensure cuttings trough bypasses shakers, and goes into cuttings ditch. Failure to do so will allow small particles to enter right back into system through the flow line shakers (84-110 mesh screens). • Verify that'/z" apexes are installed on all clones. '/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", th", 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- s 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 1.0, 27th February, 2007 • ~ _ ~ ~,~ Maggiore.#3 Surface Interval Overview Surface to 2,000' MD Lithology through this zone is a composite of small gravel in the upper intervals with a grading downward to sand, clay, and some siltstone in the lower zones of this interval. Based upon work done on previous wells a modified M-I Gel/Gelex spud mud is recommended for the surface interval. Initial viscosities of 150 - 200 sec/qt should be used through the permafrost, which extends to a depth of 1,600' TVD. Expected pore pressures at the base of this interval are expected to ~ be at 8.3 - 9.1 ppg EMW. 9.625" surface casing will be set and the cement will be pumped in a single stage to surface to complete this interval. Surface Interval Drilling Concerns: - Large gravel sizes can cause hole-cleaning problems. If larger than normal gravel is encountered be prepared to increase funnel viscosity to 250 sec/qt. Have GELEX available for an immediate response to this issue. - Care should be taken in the event that an unexpected hydrate encounter occurs. If the hydrate issue is deemed to be a major problem, use the following guidelines to help minimize the effect that any hydrates may have to the drilling operation. - Sticky clays in the permafrost and also in the zone below the permafrost can slow ROP from bit and BHA balling. If needed add SCREEN KLEEN (at 1 - 2%) and Nut Plug m (as allowed by MWD tools) to minimize clay to metal sticking. Additions of DrillZone used in conjunction with the SCREEN KLEEN will help with shaker screen blinding and will also enhance the effect of the SCREEN KLEEN. Consider pretreating the system with the SCREEN KLEEN and DrillZone with 1 % v/v of each. - Swabbing in the clays may also be a problem. Maintain or slightly increase mud weight (.1 ppg) and continue additions of SCREEN KLEEN at 15 to 30 gallons. per hour and wiper runs through these intervals may be necessary to clear the wellbore of the problem clays. - To help insure good cement to surface after running the casing, condition mud to a funnel viscosity of +/_ 55 - 65 sec/qt (YP of 12 -15) prior to cementing the casing. Have SAPP, Desco CF and water on hand to ensure the desired rheologies can be achieved. Use water sparingly to reduce the over all haul-off costs for this well. Location North Slope Alaska Confidential Date: Ver 1.0, 27th February, 2007 • ~ ___ _...~,.u..~'" Maggiore #3 Surface Interval Operations Surface Interval Operations Recommendations: 1. Spud mud will be mixed on the rig or delivered from the MI mud plant in Deadhorse once the rig is spotted over the well. The mud should include 0.2 ppb Soda Ash and 25 ppb M-I Gel and should also be allowed to hydrate as long as is possible prior to drilling. 2. Just prior to spud, add Gelex, as needed, to raise viscosity to +/_250 sec/qt. Maintain viscosity as required using M-I Gel/Gelex to clean the hole. 3. Viscosities should be adjusted to 250 sec/qt through the Permafrost and may then be lowered to 150 sec/qt as hole conditions allow. 4. Drill ahead maintaining volume with additions of cold water, M-I Gel and Gelex as needed. 5. Keep the spud mud as cold as possible to minimize melting in the permafrost found in this zone. ~ 6. Run all solids control equipment as per the enclosed "Solids Control Equipment" recommendations. Add drill water below shaker to avoid washing unwanted solids back into the active system. Watch for "excessively wet" cuttings and .change screens to a larger mesh should this occur. Minimization of "excessively wet" cuttings sent to Grind and Inject for disposal is a major cost reduction factor. 7. Lower API fluid loss with PAC PLUS UL as needed to maintain hole stability. 8. To control rheology additions of Desco CFinay be needed. 9. Add SCREEN KLEEN (at 1 - 2%), DrillZohe (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 1.0, 27th February, 2007 • • Maggiore #3 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 - 4,000 9.4-9.5 10 28 - 30 4 - 6 28,000 - 31,000 9.0 - 9.5 Production Interval Fluid Formulation (for new 9.4 ppg 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 (or as required for correct densit ppb Klagard (2%) 6 ppb Caustic Potash 0.05 ppb 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: Ver 1.0, 27th February, 2007 s • ~ . ~,. Ma lore #3 Recommended Solids Control Equipment Shakers- • Inspect decking rubbers, c/o as necessary. • Install XR Magnum screens (175-210 mesh).. Ensure screens are properly tensioned, per M-I Swaco's best practice suggestions. Spray down new screens with fresh water before operating the shakers. • Set counterweights to 90% (7.8 G's) for optimum performance. • As fluid shears, screen up as necessary to higher mesh screen sizes. 210 mesh is optimum to reduce sand sized particles. • Ensure jacking system on ALSII or equivalent shakers enables the fluid to flow to the center of the screens, adjust and lock as necessary. De-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). • 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: Ver 1.0, 27th February, 2007 • • _~~. -~;° Maggiore #3 Production Interval Objective The production interval will be drilled to a TD of 4,000' MD. Formation evaluation testing will be performed as per the drilling program. Hole condition will aid in quality log data. Have fluid samples available for logging team as required. Production Interval Treatment Considerations - Screenkleen can be added at 0.25% to new FloPro to reduce foaming/aeration. - 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 logging requirements 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: Ver 1.0, 27`h February, 2007 • • ~ ,.. Ma lore #3 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 400 gpm (450 - 500 gpm preferred) to insure hole cleaning. Reduce pump rates immediately if packing off occurs. Pump high viscosity weighted sweeps and ream carefully to clean the hole before proceeding with further drilling. Hiph 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 CaCO3 addition. 6. Add S-200 (CaCO3) 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: Ver 1.0, 27th February, 2007 • • Maggiore #3 Virtual Hydraulics Model DepPth Geometry An le (ft) MDlTVD Csg OD/ID (°~ o as so 500 I_ I 1000 1500 C~ 8.5" hole ®TD I c T L " 5" drill pipe ~ Bit S I' ` - - D Densit PV ((cP) Temperature (Ib/gal VP, LSVP (Ib/100ff') (°F) Va (fUmin) Operator: ENI Well Name: Maggiore 3 Location: North Slope - AK Hole Clean Pressure Distribution Index (%) Bit = 22.9 Ann = 20 DS = 57.1 .y ,...~ ~/ Drilling Fluid Water-Based Mud Mud Weight 9.5 Ib/gal Test Ted 85 °F System Data Flow Rate 550 gatlmir) Penetration RatgS ft/hr Rotary Speed 100 rpm Weight on Bit 15 1000 I Bit Noules 16-16-16-18~ 0 _ 0_-0-0-0~0 Pressure Losses Modified Power Law ~'~ DriII String 747 psi MWD 232 psi Bit 299 psi Bit On/Off 100 psi Annulus 262 psi ~~ Surface Equip 36 psi U-Tube Effect 28 psi Tot_al_S_ystem 1704 si ESD ECD +Cut Csg Shoe 9.55 10.6110.74 T~ VRDH-Venlon 3.1 Fann 35 File-anl mag2.MDB Location North Slope Alaska Confidential Date: Ver 1.0, 27th February, 2007 • ©1995.20068Mo'MIL.C. 1.00 -~ ~.- ~ ROP 50 ft/hr ~ -~ ----~ ROP 100 fUh ROP 150 fUh ~. ROP 200 fUh i Fair Hole Cleaning ~_ Good Hole Cleanln 0.25 t _- ~ ~ ---,I ~~ 4 500 00 Good Hole Cles Flow Rate (gal/min) _~. ~ I _ ~..~_~ ~ _ ~~ t ~~ 700 ~ 800 NOTE: In all cases where the flow rate is less than 450 gpm and drill rate exceeds 200 fph extra precautions should be ma e o 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. s MD: 4000 ft ~ Operator: ENI 8.5" hole ~ TD g Well Name: Maggiore 3 TVD: 4000 5" drill pipe Bit Size: 8.5 in Location: North Slope - AK - CQUnt_ry; 4 --- ---- p~g; 2/27/2097 Hole Clean ng ENI Magg' i ~ - --. ~_ _. __ . _+__ -4 ---t ~' Poor Hole Cleaning i.___~. Location North Slope AlasKa Date: Ver 1.0, 27th February, 2007 • ~ ,~- _..._ Maggiore #3 Hydrate Issues Care should be taken in the event that an unexpected hydrate encounter occurs. If the hydrate issue is deemed to be a major problem, use the following guidelines to help minimize the effect that any hydrates may have to the drilling operation. • Add 2.0 Ib/bbl Lecithin to the mud prior to drilling into the zone below the permafrost if necessary. Desco CF may be used to adjust rheology after the Lecithin additions are made. • Weigh the mud at both the possum belly and at the suction pit using pressurized and regular mud balances to determine the amount of gas that has become entrained in the mud. • Maintain the fluid temperature as low as possible (<60°F if possible). • Minimize circulation time and flow rate to reduce hydrate thawing. • Watch both drill rates and flow rates and make adjustments as needed to help diminish any problems that the surface equipment may have in handling the fluid and cuttings while circulating out any hydrates. • Weight up to 9.5 ppg or as needed prior to drilling out of the permafrost. Watch the rate of depletion of the hydrates and increase the weight as needed to control the gas breakout from the hydrates. Reduce flow rate and continue the drill through the hydrates to allow them to freeze back up as soon as possible. Spud Mud to FLO-PRO NT Displacement Recommendations: • Prior to drilling out the cement and shoe of the casing. Reserve 35 bbls of the surface mud in a pill pit and lower the remaining fluids YP to <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'h 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: Ver 1.0, 27th February, 2007 • ~ Ma lore #3 Recommended LCM Pill for FLO-PRO NT The following lost circulation pill is recommended for use in the event that losses occur while drilling the horizontal production interval. It has been selected because of its' ability to seal with minimized formation damage. These products are predominately acid soluble which will make any stimulated cleanup (if needed) much easier. - To existing FLO-PRO NT circulating fluid make a LCM pill with: • 15 ppb Lowate (fine calcium carbonate) • 15 ppb Safe-Garb Medium (medium calcium carbonate) • 15 ppb Safe-Garb Coarse (course calcium carbonate) Insure particle sizes of bridging materials can pass through the down hole tools and motors prior to mixing and spotting. 1. Spot pill across thief zone, if losses stop, pull into casing and apply 200-psi squeeze pressure and watch for pressure bleed-off. If pressure holds for 15 minutes, resume drilling. If pressure does not hold, spot another pill as described above. 2. If losses cannot be stopped with calcium carbonate only, mix up a LCM pill with 25 ppb MIX II Fine and 15 ppb MIX II Course cellulosic material and spot as above. 3. If seepage losses occur after drilling is resumed, consideration should be given to adding 5 - 8 ppb MIX II Fine cellulosic material to system while circulating. Location North Slope Alaska Confidential Date: Ver 1.0, 27'h February, 2007 •• • ~ ~ Schlumberger CemCADE Preliminary Job Design 9 5/8" Surface Casin , V1 Preliminary Jab Design based on limited input data. For estimate purposes only. Rig: Nabors 27e Location: Exploration Client: ENI Wxploration Revision Date: 2/27/2007 Prepared by: Mike Martin Location: Anchorage, AK Phone: (907) 263-4207 Mobile: (907) 748-6900 email: martinl3@slb.com at Surface Previous Csg. < 13 3/8", 68.# casing at 100' MD < Base of Permafrost at 1,400' MD (1,400' TV D) < Top of Tail at 1,600' MD < 9 5/8", 47.0# casing in 12 1 /4" OH TD at 2,000' MD (2,000' TvD) 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 1,600' MD. Lead Slurrv Minimum pump time: 170 min. (pump time plus 120 min.) ARCTICSET Lite @ 10.7 ppg - 4.45 ft3/sk 0.3354 ft3/ft x (100') x 1.00 (no excess) = 33.5 ft3 0.3132 ft3/ft x (1400' - 100') x 3.50 (250% excess) = 1425.1 ft3 0.3132 ft3/ft x (1600' - 1400') x 1.50 (50% excess) = 94 ft3 33.5 ft3 + 1425.1 ft3+ 94 ft3 = 1552.6 ft3 1552.6 ft3 / 4.45 ft3/sk = 348.9 sks Round up to 350 sks Have 230 sks of additional Lead on location for Top Out stage, if necessary. Tail Slurrv Minimum pump time: 130 min. (pump time plus 120 min.) ARCTICSET I @ 15.7 ppg - 0.93 ft3/sk 0.3132 ft3/ft x (2000' - 1600') x 1.50 (50% excess) = 187.9 ft3 0.4110 ft3/ft x 80' (Shoe Joint) = 32.9 ft3 187.9 ft3 + 32.9 ft3 = 220.8 ft3 220.8 ft3/ 0.93 ft3/sk = 237.4 sks Round up to 240 sks BHST = 46~, Estimated BHCT = 63~. (BHST calculated using a gradient of 2.6/100 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 7.0 276.5 39.5 72.5 AS 1 6.0 39.3 6.6 79.1 Drop top plug 0.0 0.0 5.0 84.1 Mud 8.0 131.6 16.5 100.6 Mud 3.0 9.0 3.0 103.6 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 2 joint throughout tail slurry column. Mark of Schlumberger i Schlumherger CemCAD E*well cementing recommendation for 9-5/8" Surface Casing Operator : ENI Well Maggiore #3 Country :USA Field Exploration State :Alaska Prepared for :Ron Stadem Location Proposal No. : V1 Service Point Prudhoe Bay Date Prepared :February 27, 2007 Business Phone (907- 659-2434 FAX No. :1907) 659 -2538 Prepared by :Mike Martin Phone (907) 263-4207 E-Mail Address martin13@slb.com Disclaimer Notice: This information is presented in good faith, but no warranty is given by and 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 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 ahsolute 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 I 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 be inferred. Mark of Schlumberger • • Client ENI Well Maggiore #3 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Section 1: well description Configuration :Casing Stage :Single Rig Type :Land Mud Line : 0.0 ft Total MD :2000.0 ft BHST : 48 degF Bit Size : 12 1/4 in Previous String MD OD Weight ID ft in Ib/ft in 100.0 13 3/8 68.0 12.415 Landing Collar MD :1920.0 ft Casing liner Shoe MD :2000.0 ft SCI r~~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 :186.8 Mean OH Equivalent Diameter: 16.042 in Total OH Volume :475.0 bbl (including excess) Caliper and Hole Size Data MD Caliper Excess Equiv. Diam. ft in % in 1400.0 12.250 250.0 17.135 2000.0 12.250 50.0 13.371 Formation Data MD Frac. Pore Name Lithology (ft) (Ib/gal) (Ib/gal) 1785.0 12.50 8.30 P.Frost 2000.0 12.50 8.60 Sandstone Geothermal Temperature Profile MD TVD Temperature Gradient ft ft de F de F/100ft 0.0 0.0 32 0.0 1400.0 1399.8 32 0.0 2000.0 1999.3 48 0.8 Page 2 eni - maggiore 2.cfw; 02-27-2007 ; Loadcase 958 Surf ;Version wcs-cem45_69 • ~ Client ENI S ~l Well Maggiore #3 rg~r c String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Section 2: ce ntralizer placement Top of centralization :1600.0 ft Bottom Cent. MD :1980.0 ft Casing Shoe :2000.0 ft NB of Cent. Used :5 NB of Floating Cent. :0 Centralizer Placement Bottom MD Nbr. Cent. / Cent. Name Code Min. STO C~ Depth ft Joint (°io) ft 2000.0 5 1/2 S3123695-9 5/8-6-36 3/16" 94.7 1940.0 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 3 eni - maggiore 2.cfw ; 02-27-2001; Loadcase 958 Surf ; Version wcs-cem45_69 Client ENI Well Maggiore #3 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 9.50 Ib/gal Job volume :140.6 bbl MUDPUSH II DESIGN Fluid No: 4 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 :8.32Ib/gal Sc~lr~~r 10.701b/gal 5.42E-3 Ibf.s^n/ft2 :0.663 9.56 Ibf/100ft2 (Ibf/100ft2) Job volume :276.5 bbl Quantity :349.24 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 :39.3 bbl Quantity :237.53 sk Solid Fraction :49.2 Base Fluid :3.536 gal/sk Page 4 eni - maggiore 2.cfw; 02-27-2007 ; Loadcase 958 Surf; Version wcs-cem45_69 Client ENI Well Maggiore #3 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf Sclr~~r Section 4: fluid seauence 9.50 Ib/gal P~ :20.000 cP Tv :30.00 lbf/100ft2 Displacement Volume 140.6 bbl Total Volume 546.4 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:2.771bf/100ft2 ASL surf 276.5 1600.0 10.70 k:5.42E-3 Ibf.s^n/ft2 n:0.663 Tv:9.56 Ibf/100ft2 AS1 39.3 400.0 1600.0 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 4464 psi at 1920.0 ft Burst 6870 psi at 0.0 ft Cs .Pum out 33 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 7.0 276.5 39.5 276.5 80 AS1 6.0 39.3 6.6 39.3 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 Slow & bum lu Total 01:43 546.4 bbl hr:mn Dynamic Security Checks Frac 5 psi at 100.0 ft Pore 0 psi at 100.0 ft Collapse 4464 psi at 1920.0 ft Burst 6626 si at 0.0 ft III eni - maggiore 2.cfw; 02-27-2007 ; Loadcase 958 Surf ;Version wcs-cem45_69 Page 5 • • Client ENI Well Maggiore #3 String 9-5/8 District Prudhoe Bay Country USA Loadcase 958 Surf ft o~ O O M °o 0 Si N u7 O 0 N a a a 5 I N O a c c Q m 0 N C E ~ ~' d m m ~ 3 s 0 Ib/g al 8 12 - Hydrostatic - Nin. Hydrostatic - fv~x. Dynamic - - rvin. Dynamic Frac Pore 16 Fluid Sequence Dynamic Well Security pth = 2000 ft O N .N _a o_ ScMl~rg~r 0 0 30 60 90 120 Time (min) o Depth = 2000 ft ~ N - Annular Veloc E T~ 'U O -. N C c Q O 0 30 60 90 120 Time (min) 10 20 30 40 50 60 70 80 90 100 110 Time (m in) Time (min) Page 6 eni - maggiore 2.cfw; OZd7-2007 ; Loadcase 958 Surt ;Version wcs-cem45_89 • • Zo7 o3a Subject: Re: [Fwd: Maggiore #2 Surface Hole Logs] From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Mon, 26 Feb 200716:43:23 -0900 To: bill@fauweather.com CC: Thomas Maunder<tom_maunder@admin.state.ak.us> Bill, The proposed location lies about five miles from the nearest well and outside of the Kuparuk River Unit Aquifer Exemption area. Five miles is the line-of-sight distance from AOGCC's office to Fairweather's warehouse on 88th Avenue in mid-town Anchorage. As you know, geology and fluid systems can change significantly that distance. Accordingly, a shallow porosity log will be required in Maggiore 2. / //,~ Please let me know if you have any questions. S/Kt 0" }~-{~EQ-G7 (~"la- ~~' ~~- Steve Davies Sr. Petroleum Geologist AOGCC / 3.2.0 907-793-1224 Steve Davies [Fwd: Maggiore #2 Surface Hole Logs] • ~ ?..a7-c~3C~ Subject: [Fwd: Maggiore #2 Surface Hole Logs] From: Thomas Maunder <tom maunder@admin.state.ak.us> Date: Mon, 26 Feb 2007 09:44:37 -0900 To: Steve Davies <steve_davies@admin.state.ak.us> Steve, Would you answer Bill? My read would be that the logs should not be required. Tom -------- Original Message -------- Subject: Maggiore #2 Surface Aole bogs Date: Mon, 26 Feb 2007 09:38:15 -0900 From: Bill Penrose <bill@f airweather.com> To: tom maunder@admin.state.ak.us Tom, Attached is a map showing the location of Eni's last planned well for this season, Maggiore #2. It'll be a 4,000' vertical well at the end of an ice road spur that is now under construction. Eni would like to set up its subsurface evaluation program and asks if there will be a requirement for an open-hole sonic or density porosity log in the surface hole as there was for Maggiore #1. Would you please let me know so I can pass the verdict on to Eni? Thanks and regards, Bill Content-Type: appiication/octet-stream ENI Maggiore2_final.pdf - Content-Encoding: base64 __ _ _ __ ~p~ k.~~, as ~ t~ #3 . ~~ '3 -Z • 0-7 1 of 1 3!2/2007 11:49 AM Re: [Fwd: Maggiore #2 Surface Hole Logs] • • Subject: Re: [b'wd: Maggiore #2 Surface Hole Logs] From: Stet~hen Davies <steve daves@admin.state.ak:us~ Datc: ?~~lon, ?6 [~eb ~~47 th:43:23 -4900 °`l'o: bill~cc-'lair~~eathei~.com CC: ~hhonu~s llatul~er ° torn_maundcr<<-~adn~in.state.ah.us% Bill, ~•®~-~ ~~ The proposed location lies about five miles from the nearest well and outside of the Kuparuk River Unit Aquifer Exemption area. Five miles is the line-of-sight distance from AOGCC's office to Fairweather's warehouse on 88th Avenue in mid-town Anchorage. As you know, geology and fluid systems can change significantly that distance. Accordingly, a shallow porosity log will be required in Maggiore 2. Please let me know if you have any questions. Steve Davies Sr. Petroleum Geologist AOGCC 307-733-1224 Maggiore #2 Surface Hole Logs Subject:..Maggiore.#2.Surface Hole'Logs, From: B~11 Penrose <bll@fairweather.com> ~ ~ ~ T Pate: I~IoI~, ?6 Fah ?007 09:3f~:1 ~ ~-0900 To: tolls ~Y~aunder~u a~i~nin.statc.ak.us Tom, Attached is a map showing the location of Eni's last planned well for this season, Maggiore #2. It'll be a 4,000' vertical well at the end of an ice road spur that is now under construction. Eni would like to set up its subsurface evaluation program and asks if there will be a requirement for an open-hole sonic or density porosity log in the surface hole as there was for Maggiore #1. Would you please let me know so I can pass the verdict on to Eni? Thanks and regards, Bill __ __. __. _ _ __ _. _ _ _. __. Content-Description: E1VI Maggiore2_final.pdf '':ENI_Maggiore2_linal.pdf Content-Type: application/octet-stream Content-Encoding: base64 __. ~_ 6050000 6000000 5950000 5900000 5850000 EPA Aquifer Exemption - 40 CFR 147.102 (b)(3) 400000 500000 600000 700000 800000 • • • 1= A IRWEATH ER EXPLORATION - : FIRST NATIONAL BANK A L A S K A. 89-6 -~, "~ /1 1252 ~ ~ ~ '~, PRODUCTION SERVICES INC.. GENERAL ACCOUNT 2000 E. 88th AVE., SU1TE200 ANCHORAGE, AK 99507-3804 (907)258-3448 Pay: ****************************************One hundred dollars and no cents DATE CHECK NO. AMOUNT ' March 2, 2007 200162 $********100.00' 'PAY S2ATE OF ALASKA AOGCC (OIL &'G 8 To THE 333 WEST 7TH AVE SUITE 100 ORDER OF ANCHORAGE, AK 99501 i9 ~. ii'200i62~~' ~:L25200060~: OLL2 B23 Oii' T'~tANS1d~I1'T'f0i, ~.E'I"'I'ER C~iECKLIS~' vvll;LL vAlviE ~e~~-- 3 1=Tn# ~p 7~ 3l~ ®evelopment Service V Exploratory Stratigraphic Vest Yon-Conventional Weli Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK i ADD-ONS I TEXT FOR APPROVAL LETTER ;' ~L'HAT ~ (OPTIONS) APPLES I MULTI LATERAL ~ The permit is for a new weltbore segment of existing I I ~ well ~ (If last two digits in I Permit No. ,API No. ~0- - - API number are I ;between 60-69) Production should continue to be reported as a function of the ;original API number stated above. PLOT HOLE ; In accordance with 20 AAC 25.00~(f), al! records, data and logs i ;acquired for the pilot hole must be clearly differentiated in both ~ ~ ~ well name ( PH) and API number j ~ ' (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 Qroduce /infect is contingent ,' I upon issuance of a conservation order approving a spacing j i' j exception. assumes the ~ liability of any protest to the spacing exception that may occur. i Non-Conventional Well Please note the fo[Iowing special condition of this permit: production or production testing of coal bed methane is not allowed 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~an,~Name) must contact the 4 Commission to obtain advance approval of such water well testing Rev: 12~i06 C:`jody~transmittal_checklist ,DRY DITCH ~ Al[ dry ditch sample sets submitted to the Commission must be in i i 5A!vIPLE I no greater than 30' sample intervals from below the permafrost or i ! I from where samples are first caught and t0' sample intervals j ' ~ through target zones. WELL PERMIT CHECKLIST Field & Pool _ _ _ _ _ _ Well Name: MAGGIORE 3______ _-_ _ ____Program EXP______ ____ Well bore seg i '. PTD#:2070300 Company ENI PETROLEUM _ ______- .._- ___ _ ______ ___ Initial ClasslType _ -- _ EXP l PEND _ GeoArea 820 _ __ ______ __ _ Unit _ _ ________ OnlOff Shore On ___ Annular Disposal I` I, Administration ',1 Permit fee attached Yes - ~2 Lease number appropriate- Yes _ 3 Uni-quewell-name and number_________________ Yes_ -__-.-_--_. -- - - - - I4 Well located in a defined-pool- . No - - Exploratory well. ',5 Well located proper distance from drilling unit_boundary Yes X16 Well located proper distance from other wells_ - Yes . . Nearest well-is about-6 miles away 'i7 Sufficient acreage available in drilling unit. - _ Yes _ X18 If deviated, is-wellbore plat_included - _ _ - - - - NA- _ Vertical well- - j9 Operator only affected party- Yes Notice otOwne[ship forms for ADL 390658 were checked and found- in orde[on Feb.26, 2007.- 10 Operator has-appropriate-bond in farce _ - _ _ _ - - _ _ _ _ _ _ - - - _ - - _ - . Yes _ _ - Change made_to 10-401-form. _Proper bond number is-RLB0008627. _ - . _ _ II11 Permit can be issued without conservation order Yes Appr Date !,12 Permit can be issued without administrative-approval Yes SFD 312/2007 13 Can permit be approved, before 15-day wait Yes 14 .Well located within area and-strata authorized by Injection Order# (put-10# in-comments) (For- NA 15 All wells_wiihin 114_mile area of review ident~ed (For service well only) _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA- _ _ - - _ _ - - - - -- - 116 Pre-produced injector; duration ofpre-production less than 3 months (For service well only) N_A - - 17 Nonconven. gas conforms to A$31,05,030Q.1.A),(j.2.A-D) NA Engineering 18 Conductor string-provided Yes 19 Surface casing protects all-known USDWs - Yes ',20 CMT vol adequate to circulate on conductor & surf csg Yes ',21 CMT vol-adequateto tie-in long string to surf csg_ - N_A- - - No production-casing planned. ii22 CMT will coyer all known.productive horizons. No P&A cement will covera_IIhydrocarbons. - j23 Casing designs adequate for C, T, B & permafrost Yes X24 Adequate tankage or reserve pit - - - Yes Rig is-equipped with steslpits. Nor reserve pit planned. All.waste_to approved disposal well(s).- ~,25 If a re-drill, has-a 10-403 for abandonment been approved - _NA_ 126 Adequatewellboreseparationproposed_________________________________ Yes. .__.-.Nearestwell_-6 milesdistant._-___-__--__-.__-._, -- - - -- 1127 If diverter required, does it meet regulations - - Yes - - - Appr Date X128 Drilling fluid-program schematic & equip listadequate_ Yes Maximum expected f_ormatign pressure 9,0_EMW. Planned mud weight_up to 2.5 ppg. TEM 312120D7 ~ 12g 30 BOPEs,-do they meet regulation BOPE-press rating appropriate; test to-(put psig m comments) Yes - Yes - - - MASP neglecting shoe fradure.1.472psi -3500 psi appropriate - - _ - - - - ~ ~ 31 Choke manifold complies wlAPL RP-53 (M_ay 84) Yes - - ',32 Work will occur without operation shutdown_ - - _ _ - - . Yes - ~133 Is presence of H2$ gas probable No_ - - - ... H2S has not-been reported in the target interval: Rig has sensors and alarms, . - 134 F- Mechanical-conddion of wells within AOR verified (For service well only) NA_ . Geotogy ';35 Permit can be issued wlo hydroge4sulfide measures ... Yes H2& not encountered in offset wells4 but rig is equipped with sensors & alarms, 136 Data.presented on-potential overpressure zones- ... Yes - . - _ None anticipated based on seismic info_or on offset drilling results.- Hydrates maybe encountered, and Appr Date 137 Seismic analysis. of shallow as-zones - g Yes - - .....mitigation measures a[e.discussed in the Drillin Hazardssection._ 9- SFD 3/212007 !38 Seabed condition survey-(if off-shore) - NA ',39 Contact namelphone for weekly-progress reports. [exploratory only] Yes Bill Penrose, Fairweather,-207-258-3446 - - - - - Geologic Date: Engineering Date Public Vertical, shallow (4,000') onshore exploratory well drilled to test the Schrader Bluff N and 0 sands about 8 miles south- Date i Commissioner: Commissioner: sad ~~~~~' Com ss ner southeast of the Kuparuk River Unit. - b Ys 31 sJ7 - ~_s _~,~
