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205-143
James B (CED) 4 -TI) b 51 `(J b From; Henspeter, Mark A (DNR) J Sent: Tuesday, November 12, 2019 4:54 PM To: Regg, James B (CED) Cc: Laubenstein, Lou (CED) Subject: Threemile Creek DR&R aerial images Attachments: TMC3_reduced.jpg; TMC2_reducedjpg; TMC1_reduced.jpg Hi Jim, Attached are three images from the Threemile Creek pads numbers 1, 2, and 3. These images were captured on October 24, 2019 as part of the Division of Oil & Gas Plan of Ops closure inspection. The final report for the inspection should be available on Friday. These attached images are a reduced file size so they can be inserted into a report for distribution. I am sending over the full -resolution images (as well as two oblique images) through our file transfer application. Please let me know if you need any other information. Hope that helps, -Mark Henspeter Natural Resource Specialist Division of Oil & Gas Permitting Section Phone: 907.269.8812 mark.henspeter@alaska.gov MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg ���� 1(()1j17 DATE: 10/25/19 P. I. Supervisor (, FROM: Lou Laubenstein SUBJECT: Final Location Inspection Petroleum Inspector Three Mile Creek 1, 2 and 3 Cook Inlet Energy PTD 2041830, 2051430, 2110710 10/24/19: 1 traveled to Beluga for 3 final location inspections on the Three Mile Creek wells. Alaska Department of Natural Resources representative Mark Henspeter was also on location for these location inspections and used a drone to capture aerial images of each wellsite. There were no Cook Inlet Energy representatives on location at the time of these inspections. Three Mile Creek #1 (PTD 2041830) The location was clear of any signs of oil field equipment or debris, no visible leakage or spills could be seen on or off the pad. A large mound of dirt in the middle of the pad marks where the well was. Three Mile Creek #2 (PTD 2051430) The location was clear of any signs of oil field equipment or debris, no visible leakage or spills could be seen on or off the pad. A large mound of dirt in the middle of the pad marks where the well was. Three Mile Creek #3 (PTD 2110710) The location was clear of any signs of oil field equipment or debris, no visible leakage or spills could be seen on or off the pad. A large mound of dirt in the middle of the pad marks where the well was. Attachments: Photos (6) 2019-1024_Location_Three _Mile _Creek_ll. docx Page 1 of 4 � \. 1' iG Y�P.� v� 4�` f'4�`� 8',, � Y a J Y � . ,. err: �` �,: "i:.` -';w s y^y Q: STATE OF ALASKA JUN 17 2019 ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT ANWMCC 1a. Well Status: Oil ❑ Gas❑ SPLUG ❑ Other ❑ Abandoned 2] • Suspended❑ 20A C25.105 20AAC 25.110 GINJ ❑ WINJ ❑ WAG❑ WDSPL ❑ No. of Completions: 1b. Well Class: Development ❑Z Exploratory ❑ Service ❑ Stratigraphic Test ❑ 2. Operator Name: Cook Inlet Energy, LLC (a Glacier Oil & Gas Corp/Successor in interest to Forest Oil Corp) 6. Date Comp., Susp., or aa5/18/2019 14. Permit to Drill Number / Sundry: 205-143'/51%- 05-143• ,%-3. 3.Address: 188 W. Northern Lights Blvd, Suite 510, Anchorage, AK, 99503 7. Date Spudded: 1Q//$ 1f 8. Date TD Reached: 'I -. # } 1Z,.1S 15. API Number: 50-283-20116-00-00 4a. Location of Well (Governmental Section): Surface: 67V FNL, 273' FWL, Sec. 35, T1 3N. R1 1W SM Top of Productive Interval: 221' FSL, 427' FEL, Sec. 27, T1 3N, R11 W SM Total Depth: 671' FSL, 777' FEL, Sec. 27, T13N, R11 W SM 16. Well Name and Number: Three Mile Creek #2 . 17. Field / Pool(s): �+ / Three Mile Creek Unit �l 9. Re£ ElevaFOns: KB: 310' • GL: BF: 10. Plug Back Depth MD/TVD: 5225' MD / 4822' TVD • 18. Property Designation: - ADL 388233 z;Zo 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 286553 ' y- 2625014 Zone- 4 TPI: x- 286086 y-2625656 Zone- 4 Total Depth: x- 285538 y- 2626356 Zone- 4 11. Total Depth MD/TVD: • 5307' MD / 4899' TVD • 19. DNR Approval Number: N/A 12, SSSV Depth MD/TVD: N/A 20. Thickness of Permafrost MD/TVD: N/A 5. Directional or Inclination Survey: Yes LJ (attached) No Submit electronic and printed information per 20 AAC 25.050 13. Water Depth, if Offshore: N/A (ft MSL) 21. Re-drill/Lateral Top Window MD/TVD: N/A 22. Logs Obtained: List all logs run and, pursuant to AS 31.05.030 and 20 AAC 25.071, submit all electronic data and printed logs within 90 days of completion, suspension, or abandonment, whichever occurs first. Types of logs to be listed include, but are not limited to: mud log, spontaneous potential, gamma ray, caliper, resistivity, porosity, magnetic resonance, dipmeter, formation tester, temperature, cement evaluation, casing collar locator, jewelry, and perforation record. Acronyms may be used. Attach a separate page if necessary 23. CASING, LINER AND CEMENTING RECORD CASING WT. PER FT GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT PULLED TOP BOTTOM TOP BOTTOM 13-3/8" 48# H-40 Surface 60' RKB Surface 60' RKB Driven N/A N/A 9-5/8" 36# J-55 Surface 1019' Surface 1019' 12 1/4" 113 bbls 14.6ppg cmt, top job 8 bbls 15.8 ppg G None 5-1/2" 15.5# J-55 Surface 5270' Surface 5270' 7 7/8" 3 stage, 126sx Class G, 63sx+800sx Class G None 24. Open to production or injection? Yes ❑ No ❑ If Yes, list each interval open (MDf rVD of Top and Bottom; Perforation Size and Number; Date Perfd): D TE (FI Z°!q VERIFIED 25. TUBING RECORD SIZE DEPTH SET (MD) PACKER SET (MD/TVD) 3-1/2" & 2-7/8" 1892' & 4728' See attached 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. Was hydraulic fracturing used during completion? Yes LiNo Per 20 AAC 25.283 (1)(2) attach electronic and printed information DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: N/A Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Flow Tubing Casinq Press lCalculated 24 -Hour Rate Oil -Bbl: Gas -MCF: Water -Bbl: 10il Gravity - API (torr): VllRtr>•�LIINI\IP\ 28. CORE DATA Conventional Corals): Yes ❑ No ❑ Sidewall Cores: Yes ❑ No ❑ If Yes, list formations and intervals cored (MD/TVD, From/ro), and summarize lithology and presence of oil, gas or water (submit separate pages with this form, if needed). Submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results per 20 AAC 25.071. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ❑ No ❑ If yes, list intervals and formations tested, briefly summarizing test results. Permafrost - Top Permafrost - Base Attach separate pages to this form, if needed, and submit detailed test Top of Productive Interval information, including reports, per 20 AAC 25.071. Formation at total depth: 31. List of Attachments: Wellbore schematic, Daily summaries, photos of abandonment. Information to be attached includes, but is not limited to: summary of daily operations, wellbore schematic, directional or inclination survey, core analysis, paleontological report, production or well test results, per 20 AAC 25.070. 32. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Authorized Name: Stephen Ratcliff Contact Name: Stephen Ratcliff Authorized Title: VP of Drilling Contact Email: sratcliff@glacieroil.com Authorized Contact Phone: 907-433-3808 Signature: ) Date: 11 t 1 INSTRUCTIONS General: This form and the required attachments provide a complete and concise record for each well drilled in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC, no matter when the analyses are conducted. Item 1a: Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 1b: Well Class - Service wells: Gas Injection, Water Injection, Water -Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Item 4b: TPI (Top of Producing Interval). Item 9: The Kelly Bushing, Ground Level, and Base Flange 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 15: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 19: Report the Division of Oil & Gas / Division of Mining Land and Water: Plan of Operations (LO/Region YY -123), Land Use Permit (LAS 12345), and/or Easement (ADL 123456) number. Item 20: Report measured depth and true vertical thickness of permafrost. Provide MD and TVD for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 AAC 25.071 and, pursuant to AS 31.05.030, submit all electronic data and printed logs within 90 days of completion, suspension, or abandonment, whichever occurs first. Item 23: Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: 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 forth for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Pursuant to 20 AAC 25.071, submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results, including, but not limited to: porosity, permeability, fluid saturation, fluid composition, fluid fluorescence, vitrinite reflectance, geochemical, or paleontology. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Item 31: Pursuant to 20 AAC 25.070, attach to this form: well schematic diagram, summary of daily well operations, directional or inclination survey, and other tests as required including, but not limited to: core analysis, paleontological report, production or well test results. Form 10-407 Revised 5/2017 Submit ORIGINAL Only GLACIER June 17'h, 2019 Jessie Chmielowski, Commissioner Alaska Oil and Gas Conservation Commission 333 West 70' Ave., Suite 100 Anchorage, Alaska 99501 Re: Well Completion Cook Inlet Energy, LLC: Three Mile Creek #2 Permit to Drill NO: 205-143 API No: 50-283-20116-00-00 Dear Commissioner, Cook Inlet Energy (CIE) hereby submits a Well Completion Report for the abandonment of Three Mile Creek #2. The work performed was covered under Approved Sundry 318-478. CIE requests the official status of Three Mile Creek #2 be changed to P&A. If you have any questions, please contact me at (907) 433-3808. Sincerely, > 1 1 Stephen Ratcliff Vice President — Drilling Cook Inlet Energy, LLC (a Glacier Oil & Gas Corp. owned company) 188 W. Northern Lights Blvd, Suite 510 Anchorage, AK 99503 10-407 Three Mile Creek #2 Daily Operations Summary API: 50-283-20116-00-00 PTD#:205-143 Date Activity 06 May 2019 Remove well house, RU wireline. 07 May 2019 Tubing and IA = 0 psi. Test lubricator to 1000 psi. RIH with equalizing prong— check for pressure. RIH to 504' WLM and attempt to pull F- stop. Tool stuck — break wire, PCH. RIH with LIB to 416', POH. RIH and fish rope socket and wire — recover fish. RIH with 3.5" GS to 432', pull pack -off, PCH. RIH with GS and pull A -stop. RIH with 2.74" LIB to 1858' WLM, tag original fish, PCH. RD slickline. 08 May 2019 RU Eline, test lubricator to 1000 psi. RIH with 2.75" CIBP, locate collars, set CIBP between at 1808' ELM. R/U hot oil truck and fluid pack. Attempt to pressure test tubing to 1500 psi — observe fast bleed b L � off, IA not tracking. RD hot oil truck. RU Eline, test lubricator to 1000 �` i I ` psi. RIH with second CIBP and set at 1778', in next full joint. RD Eline. RU hot oil truck and test tubing to 1500 psi — good. Test IA to 1500 psi —good. Secure well. 09 May 2019 RU hot oil truck. Test tubing to 1500 psi for 30 minutes and chart same — good. Test IA to 1500 psi for 30 minutes and chart same — good. Both tests witnessed by AOGCC Representative, Guy Cook. RU Eline. Test lubricator to 1000 psi. RIH with 1.375" tubing punch andup nch tubing at 1771' ELM —all shots fired. No pressure change observed between tubing and IA, unable to circulate. RIH with second 1.375" tubing punch and punch tubing at 1755' ELM — all shots fired. Pressure change and circulation confirmed. Secure well. 10 May 2019 RU Cement equipment and take on water. Pressure test lines to 2500 psi. Pump 3 bbls water spacer (confirm circulation between tubing and IA), followed by 55 bbls (183sx/1.71cuft/sx) of 13.5ppg Class G , cement. Good cement returns to surface at 45 bbls away. RD cement equipment. 11 May 2019 No operations. 12 May 2019 Clear area and prep for excavation. 13 May 2019 Excavate around wellhead. 14 May 2019 Continue excavate around wellhead. 2lPa,,c 15 May 2019 Remove wellhead and tree. Top off tubing, IA, and OA 16 May 2019 Cement job and P&A Well ID plate witnessed and approved by AOGCC Rep, Lou Laubenstein. Approval given to back fill. 17 May 2019 P&A Well ID plate welded on well. 18 May 2019 Backfill with dirt and make mound. P&A Complete. 3lPagc PID# 205-143 API# 50-263-20116-00 Rig R$14.19 Ft Abtsnd for WQ 12.958 DIRECTIONAL WELL: 33' at 1020' 35' at 1285 to 2405' 5'mTD '. - Stzmks steel tubing w^ 2 -way cberk m bottai, sett 4.447'. Plugged and attemptedmpul Recrnaed about WWI k8'.:" tubing fish at 2436' with sand fi0 below•. Oe 2014 --attempted to fish w1 CI—k8 abmv m the hole math I l" fishing BHA at 2617' +2'a fib BHA, 718' 1.5" Cf, with bait sob at 1845'. Three Mile Creek Unit No. 2 Final P&A Well Configuration As of 0511812019 2-7/8", 65# Bad EUE tubing fim 1910 to 4728' 1987-1997' 2192-2212',2232-2272', 2502-2512',2535-2550' Frar wV 175d# 21p40 2693'-27D3' 4andmd1220Fic 27728790' Free wd 62.5C# 20140 2938-2957', 2950-2985', & sod and 1120 Fier 3009-3021' 3104-3114'.3289-3314' Free w 215# 20140 sod and 1220 Rex 3507-3537' 37443754'. 3875-3695', 41354150' Free w+ 21a# 20140 4427-4147' sand and 12'20 Fler Free.1204#20'40 47 -11 -4781'.48821492 - sod and 12.120 Flex Tagged broom an 4.367. saw le utasfrac sand 5.5",15.5#, J-55 casing set at 5299' MJN4898' TVD Cemented with Clea G 13 318" 71* H40 emdwtor dri0ed to 804 3 -IC', 93# LSO &d EUE tubing to 1910' 12 114" bade drilled to 1,021' MD, 975 TVD. 9.625 36# BTC 3-55 Caring to 1,019" MD. Contented ast614.5 ppg Ca Block Type I amens shiny system to wn6ce Set CIBP at 1808' ELM -would not bold ptessme. Sol Y' CJBP at 1778JJX pof 3 - LT talawl at 177FEW -ramble to cuculrte. Pat3-12"tubing at 175YELM Cumbee wnih 183 s3r'55 bbls Eag added Class G cement (13.5 pM 171 d'sk yield) 3-1C" a 2613 XMWU 1909' 3-1C"ut2-7+8" XO 1910' 3.00" lawh sul assembly @ 1911' HRP Set Parker 9 1923' HRP Set Parker @ 2085' Pwfwwd ndeW 4 shots, 4 mchm gpmr, tap shot 6.., 2,520'40ol me tubm coAm. HRP Set Packer,* 2589' 3-112"Taro Seler+Frac Siem, . broackwd o 2.32'4 2688' HRP Set Packer @ 2755' HRP set Pam @ 2666' 3-12-7ate Smlr Fror Slane.&,,arhdto 1.32"@ 2985' HRP Set Packer @ 3051 HRP Set Pack @ 3399' 3-12"Taro Salon For Slane, braarhed to 2.32-@ 3529' HRP Set Pam fa 3690' HRP Set Packer @ 4224' 3 -Uel" Tate Select Froc Sbrore, bmachdo 232"@ 4447" AnowseeMecbatinl pacer W ontaB'md YO 2313" X nipple @ 4700' 2313" 2i-mpple @ 4718' EOT4726' rain at 52251 MD14899' TtiD 41Page Three Mile Creek #2 — PTD 205-143 — Cement to Surface and Casing Cut — 5ft below original ground level. 5 1 P a g c 7W"^'� i • w r..t.aq 0, r I I r 14 L r MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg �ZC�(f 7�� 3I1 I DATE: P. I. Supervisor FROM: Lou Laubenstein SUBJECT: Petroleum Inspector 5/21/19 Surface Abandonment Three Mile Creek #2 Cook Inlet Energy PTD 205-143; Sundry 318-478 5/16/2019: 1 traveled to Beluga to inspect the surface abandonment of Three Mile Creek #2. 1 arrived on location and met up with Wes Jeardoe (Cook Inlet Energy) as the Company Man in charge of work being done. The casing was cut below the required 3 J feet from ground level with cement to surface. The marker plate had the correct information on it and was in order. There was no sign of oil spillage or seepage in the area and the excavated hole around the casing was clean. Attachments: Photos (3) ' 2019-0516_Surface_Abandon_TM C-2 11. docx Pagel of 3 Surface Abandonment — Three Mile Creek #2 (PTD 2051430) Photos by AOGCC Inspector L. Laubenstein 5/16/2019 - .�` I Aurora Gas I --&,- ' IThree Mile Creek Unit No.2 API #: 283-20116-00 Location: 679' FNL, 273' FWL, SEC 35, T13N, R11W, SM Permit to Drill #: 205-143 r I� 2019-0516_ Surface —Abandon _ TMC -2 11. docx Page 2 of 3 2019-0516 Surface Abandon TMC-2_ll.docx Page 3 of 3 MEMORANDUM TO: Jim Regg 2 / P.I. Supervisor ��� r�/ FROM: Guy Cook Petroleum Inspector Well Name THREE MILE CK UNIT 2 IInsp Num: mitGDC190510104443 Rel Insp Num: NON -CONFIDENTIAL State of Alaska Alaska Oil and Gas Conservation Commission DATE: Tuesday, May 14, 2019 SUBJECT: Mechanical Integrity Tests COOK INLET ENERGY, LLC 2 THREE MILE CK UNIT 2 Ste: Inspector Reviewed By: P.I. Supry 1 Comm API Well Number 50-283-20116-00-00 Inspector Name: Guy Cook Permit Number: 205-143-0 Inspection Date: 5/9/2019 Packer Depth Pretest Initial I5 Min 30 Min 45 Min 60 Min PTD 2 Type Inj I N "TVD ,>y Tubing 'u 1710 1710 - 1 Well iType Test sPT�Test pst 0 IA 0 25 - 25 — BBL Pumped: az - BBLReturned: 0- OA foo loo loo - 100 Interval OTHER Notes: MIT -T for P&A. Sundry 318-478. Job was completed with calibrated gauges and a pump truck from Pollard. Tuesday, May 14, 2019 Page 1 of I MEMORANDUM State of Alaska Depth Pretest Initial 15 Min Alaska Oil and Gas Conservation Commission Well 2 DATE: Tuesday, May 14, 2019 TO: Jim Regg / SUBJECT: Mechanical Integrity Tests P.I. Supervisor 2 COOK INLET ENERGY, LLC IW 2 FROM: Guy Cook THREE MILE CK UNIT 2 Petroleum Inspector Test psi soo Src: Inspector o Reviewed By: P.I. Supry J�FZ NON -CONFIDENTIAL Comm Well Name THREE MILE CK UNIT 2 Insp Num: mitGDC190510110414 Rel Insp Num: API Well Number 50-283-20116-00-00 Inspector Name: Guy Cook Permit Number: 205-143-0 Inspection Date: 5/9/2019 Tuesday, May 14, 2019 Page 1 of 1 Packer Depth Pretest Initial 15 Min 30 Join 45 Min 60 Min Well 2 Typelnj N TVD Tubing zio a10 4 1 IW PTD 2oswso Type Test sPT Test psi soo IA o noo -i noo goo BBL Pumped: 1 03 � BBL Returned: 0.3 OA loo 100 - 00 . 100 Interval OTHER P/F P Notes: MIT -IA for P&A. Sundry318-478. Job was completed with calibrated gauges and a pump truck from Pollard. Tuesday, May 14, 2019 Page 1 of 1 RECEIVED MIRASTATE OF ALASM OIL AND GAS CONSERVATION COMfaION ,REPORT-OF SUNDRY WELL OPERATIONS JAN 2 3 2018 4 Ai 1.Operations Abandon Li Pug Perforations LI Fracture Stimulate L.] Pull Tubing Li ,,,, 7.-r- .r. Cm Li ' Performed: Suspend D Perforate D Other Simulate 0 Alter Casing D Change Approved Program 0 Plug for Redrin U Perforate New Pool 9 Repair Well [I Re-enter Susp Well U Temporary Plug U , 2.Operator Aurora Gas,LLC ‘4.WerClass Before Work: 5.Peru*to Dint Number: Name: Development 2 Exploratory 9 205-143 3.Address: 3705 Arctic Blvd.#2114 Anchorage,AK 99503 , Stratigraphic 9 Service cle.API Number: 283-20116-00 7.Property Designation(Lease Number): 8.Well Name and Number: ADL 388233 Three Mile Creek#2 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): NA Three Mile Creek Beluga Gas 11.Present Well Condition Summary: ."TotallIkepth rneasnred.3239 :feet :Rugs .measured..-b titi.'&'5225 ;feet true vertical 4898 ,feet Junk measured TOF.1845 feet r EffectiveDepth Imeasured 5225 'feet Pariker measured 1923-4700 feet true vertical 4812 feet true vertical 1769-4467 'feet Casing Length Size MD TVD Burst Collapse Structural Conductor :80 -.13•718•72#ti40 •80 •80 Surface 1019 95/8 36#J55 t01f9, 962 3629 psi 2020psi , intermediate Production 5299 5 11/2 115.5#J55 5299 4898 491Gpsi 4040psh Liner Perforation depth Measured depth 1987-4892 feet . . .. -TrueVerticat depth 4,780-4480 Tubing(size,grade,measured and true vertical depth) 2 7/8&3 1/2 6.5#J55&9.3#180 3 1/2 to 1910 2 7/8 to 4728 •Packers and SSSV(type,measured and etre vertical depth) 12.Stimulation or cement squeeze summary: . Intervals treated(measured): Treatment descriptions including volumes used and final pressure: SCANNED jAN 3 1 Z a 18 NA 13. Representative Deily Average Proalectioncor I njection Date Oil-Bbl ' Gas-Mcf " Water-Bbl I Casing Pressure I Tubing Pressure Prior to well operation: 0 0 0 Subsequent to operation: 0 0 0 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 15.Well Class after work: Daily Report of Wen Operations D Exploratory 9 Development 2 Service 9 Stratigraphic 9 Copies of Logs and Surveys Run 0 16.Wen Status after work: Oil Ei Gas 2 WDSPL 9 Printed and Bectionic Frackwe Stimulation Data El GSTOR 0 WINJ [] WAG 9 GINJ 11] SUSP-0 SPLUG U 17. I hereby certify that the foregoing is true and correct to the best of ray knowledge. Sundry Number or N/A if C.O.Exempt: 317-286 Authorized Name: George Pollock Contact Name: Authorized Title: r-Prod Ops&Eng Contact Erma gnollockaurorapower.c( Authorized Signature: ...--e---- --7-----2____ —., g Dab 1123/2018 Contact Phone: 907.351.8286 Form 10-404 Revised 4/2017 / REDIVIS ,L4A,t), 2 I, 2']18 Submit Original-Only ,1°' • • Aurora=Gas, LLC Operations Summary-Set Temporary Plug Three Mile Creek#2 Well July 23,1017 0600 hours Mob to location 0700 hours R/U WL, PT lubricator w/wellbore 0730-hours RI I3 w/2:8".gauge=ring=to 500"101,--do-not tag, 0800 hours RSH w/3=1/2"`GS w/3-1/2"A Stop to 500,WT,set Stop,POOH 0830 hours Rill w/3-1J2" DD Pack Off Plug to 500',set plug,POOH 0900 hours RIH w/3" SB w/3-1/2" F Stop to 497',WT, set Stop, POOH 09-30 outs Bleedaolf-well,Anonitorpressure-30=minutes,=Pass 1000 hours R/D WL,mob to TMC1 • • Aurora Gas, LLC Three Mile Creek Unit No. 2 Well Configuration PTD#205-143 July 2017 API#50-283-20116.00 Rig KB 14.19 Et Adjusted for WO:12.95ft 1 . ,e, , .. Displaced 3.1/2"x 5.5"annulus w/3%8.6 ppg inhibited brine ( - . 13 3/8"72#H-40 conductor drilled to 80't DIRECTIONAL WELL: 33°at 1020' 35 at 1285'to 2405' 3-1/2 9.3#L-80 8rd EUE tubing, 5°at TD 1,89 - / ' rPa'c�k taff&Stop-f�500 �' _l '/"Stainless steel tubing w/2-way , 1 ' check on bottom,set at 4,447'. Plugged 12 yr hope dolled'to 1,021' toM1,019",975 TVD. .- - '•' ' '.` ' 9:625"36#BTC J-55 Casing to _MD, and atterrtpted,to pull. Recovered about Canen ted with 14.5 ppg Gas-Block Type I 1000',left'V ting fish at 2436'with sand tall below. Oct 2014—attempted + starry system to surface to fish w/CT—left above in the hole with 11"fishing BHA at 2617'+2°d fish:BHA,718'1.5"CT,with bait sub 3-1/2"x 2.813 X Nipple 1909' at 1845'. 3-1/2"x2-7/8"XO 1910' ;� 2-7/8",6.5#8rd EDEE tubing 3.00"latch seal assembly(1911' . : HRP Set Packer•@ 1923' 1987-1997' ,.,--- �_=., 1 fIRP Set Packer @ 2085' 2192-2212',22324272', 2502-2512',2535-2556' ' reigN Perforated tubing,4 shots,4 inches apart,toP_ k--, shot(a 2,520'4ft above tubing collar. HRP Set Packer CO 2589' Frac w/17.5K#20/40 2683'4703' k= sand and 12/20 Flex 3-1/2"Zone Select Frac Sleeve, broached to 2.32'{4)2688' HRP Set Packer e^2755' X772-2790' HRP set Packer(TO 2886' Frac w/62.5K#20/40 2938-2957',2980-2985',& KIM sand and 12/20 Flex 3009-3021' 3-1/2"Zone Select Frac Sleeve,broached to 2.32"@ 2985' /RP Set Packer @ 3051 3104-:3114',3289-3314' °N111.,... laIlli '' 1P Set Packer( 3399' Frac w/21K#20/40 3-1/2"Zone Select Frac Sleeve,broached to sand and 12/20 Flex 3507=3537' ' 2.32"Q 3529' win= IMP Set Packer @ 3690' 3744-3754',3875-3895', -- 4135-4150' — HRP Set Packer Q 4224' Frac w/21K#20/403-1/2"Zone Select Frac Sleeve,broached to 44274447' -.dolor"' 161-411 sand and 12/20 Flex 2.32"@ 4447' Frac w/20K#20/40 >a' ArrowsetMechanical w/on/off tool 4771-4781', 882-4892' packer sand and 12/20 Flexw/2.313"X nipple 4700' Tagged bottom at 4,867', p1► 8S 2.313"X-Hippie Q 4718' sample was frac sand t EDT 4728' 5.3", 15.5#,1-55 casing set PU'ID at 5225'MD!4899'TVD at 5299'MD/4898'TVD Cemented with Class 0 • g;w\ o //7, 4.A THE STATE Alaska Oil and Gas �4' �- ��TA I TT ee T � Conservation Commission ALJ\ Sj\ } Witt2=- _"� 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 L 9 Fax: 907.276.7542 www.aogcc.alaska.gov George Pollock Manager Aurora Gas, LLC ® JULQ' 1400 W. Benson Blvd., Suite 410 SCANNE Anchorage, AK 99503 Re: Three Mile Creek Field, Beluga Undefined Gas Pool, Three Mile Creek 2 Permit to Drill Number: 205-143 Sundry Number: 317-285 Dear Mr. Pollock: 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. The Alaska Oil and Gas Conservation Commission(AOGCC)approves the setting of a temporary plug in this well to provide isolation from the reservoir as a short-term barrier. This work does not meet AOGCC's regulatory requirements for suspension or plugging and abandonment of this well. Prior to relinquishing the lease back to the landowner, the operator is required by law to properly plug and abandon this well. As provided in AS 31.05.080,within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown,a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration 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. Sincerely, Hollis S. French Chair DATED this day of July, 2017. RBDMS L L JUL 1 1 2017 ' • 0 ii E C E I V E 0 STATE OF ALASKA JUN 1 6 2017 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25280 1.Type of Request: Abandon 0 Plug Perforations El Fracture Stimulate 0 Repair Well El Operations shutdown 0 Suspend 0 Perforate 0 Other Stimulate 0 Pull Tubing 0 Change Approved Program 0 Plug for Redrill 0 Perforate New Pool [] Re-enter Susp Well 0 Alter Casing 0 Other Temporary Plug El 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number Aurora Gas,LLC 4 Exploratory Ill Development El 4 205-143 • 3.Address: 1400 W.Benson Blvd.Suite 410 Stratigraphic 0 D 6.API Number: Service Anchorage,AK 99503 50-283-20116-00 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? /11k- Three Mile Creek#2 . Will planned perforations require a spacing exception? Yes 111 No w7 1/4) 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL 388233 Three Mile Creek Beluga coxialAinclefined Gas PM 11. PRESENT WELL CONDITION SUMMARY Tota1.10e h,MD(ft): Total Depth ND(ft): Effective Depth MD: Effective Depth ND: MPSP(psi): Plugs(MD): Junk(MD): ,5 50 5 ' /$ 4898' - 5225' , 4812' - 650 psi 5225' TOF @ 1845' Casing Length Size MD TVD Burst Collapse Structural ' Conductor 80' 13 3/8"72#H40 80' 80' Surface 1019" 95/8"36#J55 1019' 962' 3520 psi 2020 psi Intermediate Production 5299' 5 1/2"15.5#J55 5299' 4898' . 4910 psi 4040 psi Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 1987'-4892' 1780'-4480-' 3 1/2"and 27/8" 9.3#L80 and 6.5#J55 3112 to 1910',27/8 to 4728' Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ftr. HRP set and Arrowset Mechanical packers HRP(i) 1923',2085',2589',2755',2886',3051',3399',3690',4224'and AS @ 4700' 12.Attachments: Proposal Summary ri Wellbore schematic n 13.Well Class after proposed work: Detailed Operations Program 0 BOP Sketch Ei Exploratory 0 Stratigraphic 0 Development 0 • Service 0 14.Estimated Date for TBD 15.Well Status after proposed work: Commencing Operations: OIL 0 WINJ 0 WDSPL 0 Suspended El 16.Verbal Approval: Date: GAS 0 WAG Li GSTOR El SPLUG 0 Commission Representative: GINJ Ili Op Shutdown 0 Abandoned Li 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. George Pollock Authorized Name: Contact Name: George Pollock Authorized Title: Manager-P ..lia:Crrevg Contact Email: griollockaurorapower.corn ../.._,",,, , Contact Phone: 907-277-1003 Authorized Signature: Date: 16-Jun-17 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number 3 1 -7 2._ S'i i.7.3 Plug Integrity 0 BOP Test 0 Mechanical Integrity Test El Location Clearance LI Other. X 1 c,...iroczpvg..4 PL..L,1,c, C C tv‘16-L--r (2:4-6...;.IRcenneviTs ti-IDCZ-- C uvrt---t.)4 trYr-j De e .. p., Post Initial Injection MIT Req'd? Yes 0 No Spacing Exception Required? Yes 0 No Subsequent Form Required: 10 -- 4o4 RBDMS L. L JUL 1 1 2017 Approved by: COMMISSIONER APPROVED (tj)_r ...__- oy \ PAO of- ,,,,3., --iiii ,THE RCOOVMEMDI COMMISSION I 0 N Date: -i I--. 1 i q Submit Form and \ orm 10-403'ft -W" d4/2017 1 :-27‘e, ofir4,64+4A 6c1 for 12 months from the date of approval. Attachments in Duplicate • • Aurora Gas, LLC June 16, 2017EL C `, Ms. Cathy Foerster, Chair ? CE I r Alaska Oil and Gas Conservation Commission AN 1 6 2017 333 West 7th Avenue, Suite 100 AOGGC Anchorage, AK 99501 Re: Application for Sundry Approval—Set Temporary Plug Three Mile Creek#2 Well PTD #: 205-143 API#: 50-283-20116-00 Dear Ms. Foerster: Aurora Gas, LLC hereby requests approval to set a temporary plug to secure this onshore development well in the Three Mile Creek Beluga Undefined Gas Field on the west side of Cook Inlet, northeast of the Village of Tyonek. This well is currently not producing due to fish, however, the well is mechanically sound. Aurora Gas is currently in Chapter 11 bankruptcy protection while attempting to reorganize and emerge with new owners/investors. This application is being submitted as part of our Reorganization Plan filed with the bankruptcy court if liquidation actions are ordered. Aurora Gas, LLC will provide all potential new owners/investors notice of the impending action before on-site activity begins. Two fish are present in tubing with the top fish at depth of 1845' in 3 %2"tubing. The proposed work involves setting pack offs and a tubing stop at a depth of about 500' in the 3 %2"tubing. After this assembly is set, tubing pressure will be monitored for 30 minutes to ensure isolation. The master valve will be closed providing double isolation and the wellhead secured. A follow up pressure reading will be obtained after 24 hours to ensure the integrity of the plug. . Please find the attached information as required by 20 AAC 25.110 for your review: • Form 10-403 Sundry Application • Current wellbore diagram illustrating the current well configuration. • Slickline Temporary Plug Set—Generalized Procedure If you have any questions or require any further information, please contact me at(907) 277-1003. Sincerely George Pollock Manager—Production Operations & Engineering 4645 Sweetwater Boulevard, Suite 200 * Sugarland,TX 77479 * (832)939-8991 1400 W Benson Blvd, Suite 410 * Anchorage,AK 99503 * (907) 277-1003 • I Aurora Gas, LLC Three Mile Creek Unit No. 2 Well Configuration PTD#205-143 August 2014 API#50-283-20116-00 Rig KB 14.19 Ft Adjusted for WO:12.95ft r; Displaced 3-1/2"x 5.5"annulus w/3%8.6 ppg inhibited brine ' ' _ 13 3/8"72#14110 conductor drilled to 80'f DIRECTIONAL WELL: 33°at 1020' ` 35"at 1285'to 2405' 3-1/2",9.3#L-80 8rd EUE tubing, 5°at TD 1,892' 12 1/4"hole drilled to 1,021'MD,975 TVD. '/4"Stainless steel tubing w/2-way 9.625"36#BTC J-55 Casing to 1,019"MD, „ > Cemented with 14.5 ppg Gas-Block Type I check on bottom,set at 4,447'. Plugged and attempted to pull. Recovered about cement slurry system to surface 1000'.left'/"tubing fish at 2436'with sand fill below. Oct 2014—attempted —–-- r to fish w/CT—left above in the hole with 11"fishing BHA at 2617'+2rd ' , ' , fish:BHA,718'1.5"CT,with bait sub 3-1/2"x 2.813 X Nide 1909' at 1845'. 3-12"x2-7/8"XO 1910' - 2-7/8",6.5#8rd EUE tubing ( 3.00"latch seal assembly @ 1911' HRP Set Packer @ 1923' 1987-1997' ---=-..– hMMIll HRP Set Packer @ 2085' 2192-2212',2232-2272', 2502-2512',2535-2550' 4"'- Perforated tubing,4 shots,4 inches apart,top : C:' shot A 2,520'4ft above tubing collar. HRP Set Packer @ 2589' Frac w!17.5K#20/40 2683'-2703' 1>,. = - sand and 12/20 Flex f. , 3-112"Zone Select Frac Sleeve, broached to 2.32'@ 2688' HRP Set Packer(42755' 2772-2790' HRP set Packer @ 2886' Frac w/62.5K#20/40 2938-2957',2980-2985',& "� 3-1/2"Zone Select Frac Sleeve,broached to sand and 12/20 Flex 3009-3021 � 2 3 'ii2925' -.fi -- HRP Set Packer @ 3051 31043114',3289-3314' – HRP Set Packer @ 3399' Frac w/21 K#20/40 sand and 12/20 Flex 3507-3537" --*°� (� 4 3-1/2"Zone Select Frac Sleeve,broached to 2.32"@ 3529' HRP Set Packer @ 3690' 3744-3754',3875-3895', -- -- 4135-4150' = HRP Set Packer @ 4224' Frac w/21K#20/40442711447' 3-1/2"Zone Select Frac Sleeve,broached to sand and 12/20 Flex 2.32"@ 4447' t�� Frac w/20K#20/40477111781',4882 4892' - ' ' Arrowset Mechanical packer w/on/offtool sand and 12/20 Flex w/2.313"X nipple @ 4700' Tagged bottom at 4,8672.313"X-nipple @ 4718' sample was frac sand EOT 4728' 5.5", 15.58,J-55 casing set PBTD at 5225'MD/4899'TVD at 5299'MD/4898'TVD Cemented with Class G • • AURORA GAS, LLC Slickline Temporary Plug Set - Generalized Procedure June 2017 SUMMARY: This procedure describes the steps taken to set a temporary plug in wells operated by Aurora Gas, LLC to secure the well for a short term shut in. RIH with drift for the appropriate sized tool for the tubing, in most cases 2 7/8"tubing with 2.312" or 3 1/2" tubing with 2.812"X landing nipple profile. Set PXX plug in uppermost landing profile. If a profile is not available, RIH with tubing stop pack-off plug and set above uppermost packer. After plug is set, a negative pressure test will be performed to ensure the plug has isolated the productive intervals from the surface. Upon passing the negative pressure test, the wellhead will be secured. PROCEDURE: 1) AG Operators to shut-in well and monitor pressure while rigging up. 2) RU Pollard Wire Line and lubricator on tree after removal of tree cap. Open well to pressure test lubricator—have pressure gauge on lubricator. 3) RIH with appropriate drift for X profile and sliding sleeves in upper profile. Pass through sleeve approximately 10' to insure safe operation of setting tool. POOH. 4) RIH with PXX Plug body on X-Line running tool. Set Plug body in upper most Sliding sleeve X profile above upper most production packer in well. 5) RIH with RB retrieval tool as running tool with prong. Set Prong in Plug body and POOH. 6) Record pressure and Bleed well bore to zero PSI, Monitor for 30 minutes recording pressure readings at 15 minute intervals. 7) Test successful if no pressure increase observed. If test fails, RIH and reset plug. 8) RDMO Pollard Wire Line. 9) Secure the wellhead. 10)Move to next well. 11)After 24 hours, a pressure reading will be obtained to ensure the integrity of the plug. .4€e Baine(6/11/2017) • • B PETROLEUM NEWS • WEEK Of OCTOBER 9, 2011 • N99URAI GAs a ®S - i'w—I Aurora Gas keeps up f* eld production Company has been drilling wells and using state -of -the -art hydraulic fracturing to push up flow rates l om its Cooh gas fields 1 AIAN IANEY duction in that field. And that' about six years "{ `� Y orati which contai Aurara Gas s oY ago. The Petroleum News exercise having proved fairly between 12 and 15 separate deeper pays are already producing in successful, the company antic- E ` xp l grs sand pay zones in the Three some parts of the field, but represent a Q` urora Gas, the small independent ipates us ing the same tech- Mile Creek field, with each new development in the section of the 1 i producer that specializes in Cook nique in a new well planned zone being anywhere from field where the new well is located, Jones Inlet natural gas, has been busy recently, for that same field, Ed Jones, r about 10 to 30 feet thick, he said. continuing to work Aurora Gas executive vice - said. The Beluga sands tend to Although Aurora Gas's fields are now its Tltis arlicleizfromN ts gas fields on the ,a president, oil and gas, told contain quite a bit of silt and fairly fully developed, a further well, step - west side of the inlet Petroleum News in early 2011 edition of The clay, making it difficult for gas ping out into a new area of reservoir, is to maintain gas pro- f September. Explorers magazine, to flow through them and ren- possible at either Nikolai Creek or Three duction levels. The '' which will be released dering gas production from Mile Creek, Jones said. company operates . V Multiple pays in November at the some of the deeper sands five modest -sized RDC annual confer ealavm sand The fracturing involves rather ineffective, Jones said. 9 fields and has been here. cover shovm identical techniques to those here is from the 2010 Hydraulic fracturing of the In another initiative to boost produc- trying some novel used for the development of Explorers.) sand bodies opens up channels tion, Aurora Gas has been using coiled techniques to drive D shale gas wells in the Lower 48 for gas to flow to the well. tubing to flush sand from some of its p production from except that, unlike typical In a procedure exactly anal- wells in the Nikolai Creek and some of its wells. shale gas wells, Aurora's wells are not ogous to what is termed "multistage Moquawkie fieldl. Over time, loose sand In the fall of 2010 the company used horizontal, Jones said. The target for the frocking" in shale gas wells, Aurora C,as from the poorly consolidated Cook Inlet hydraulic fracturing in one of the wells in "fracking," by the pumping of high pre eparately fracked five separate zones in basin sandstones tends to flow into gas its 9 hree Mile Creek field 10 boost pro- sure fluid into the well, is the Beluga for- the Three Mile Creek well. With some production wells. In fact one of Aurora sand units being quite closely spaced, Gas's well's had become so plugged with O' some frac zones straddled more than one sand that production had all but stopped, n! unit — there were eight sand layers in Jones said. C73 �"- total involved in the fracking exercise, "So we ran in coiled tubing to clean it '"'� Jones said. out and restored production to that well. '� ' "That seemed to work quite well and We've done that on a couple of wells," he U a f . ta the results were encouraging he said mid. W ST FRONTIER The new well to be drilled at Three Coiled tubing consists of a continuous 1 Mile Creek will involve a step out from length of relatively small diameter steel w (907) 7455701 the existing productive area of the field, tubing, normally used to drill sidetrack ,, - - •-;.::* 39901 N. Glenn Hwy bringing more pay into production. wells out from the sides of conventional w r Sutton. AK 99764 Another new well, the Nikolai Creek No. well bores. ,Helicopter Chia''ia f' heIropteryt_FAV.san 10 in the Nikolai Creek field, was being Recently, production from Aurora . ' I -ri vt y S10 � 9 C 1 �` - 1 1 a www.tFAV.com completed in mid - September — that well Gas's five fields has been running at 5 ANIMMIL - penetrated some deeper pay sands in that million to 6 million cubic feet per day, y� field. The deeper zone had been identi- h!' fied from a 3 -D seismic survey that see AURORA GAS page 9 s! recess Inhlustrl lt- h art Vitali ' Ia - a's E onom y .. 10. 3e1 Ott is ( Invited ov ember 1, 201 fili Maski ' e 4, Industry ny C Consortium APICC Annual Meeting and �, n -r. .1 e - . . 0t: Convention Center, ... , . ,x 1rtcArage. Alaska t` Rue ... — t� — '{ i PEEP I r - , The 2011 APICC Meeting and Conference is � ' P"' I..- . iti .! . r- sn ,, - „•,__ focused on developments in Alaska's process , 4 ' industries, related training and career /job opportunities for Alaskans. As Alaska enters its ` second fifty years of Statehood, economic T'" y+t - _ �' i .. . • °:. • .at . vitality will be driven by our people and our y� resources. Come and learn from Alaska's Register at W / �1�/d�A /i, a p 11r. {r . \,/y Ii g business and industry what the future holds. [ j' J 1'J1,jrh.. ,.�` ja. • . " • r 1- ' rA' = ' x ,. • 9e C on B l � '(gy —. .-.1 A l ., r .7. .r • • PETROLEUM NEWS ` WEEK OF OCTOBER 9, 2011 9 continued from page 8 AURORA GAS Innovative Building Solutions supplying fuel gas to a couple of Cook Inlet oil producers and supplying utility - , -- - gas to Fairbanks Natural Gas, foi shipping 7 44, ; , as liquefied natural gas to Fairbanks. ..."r..,, - Jones said that he hopes that the two new - 1 development wells will boost production to around 10 million cubic feet per day. __ Typically a new well gives a sharp boost :,1." k to production before fading off a bit, he """ _r:_ : , L. ■ said. Aurora Gas has recently signed a new _ _ _ ' ' gas supply agreement with Enstar Natural `S -_d Gas Co.. the main Southcentral Alaska / / � gas utility. However, this contract, which r f has been submitted to the Regulatory - II r -- Commission of Alaska for approval, sim- .. M �..c.W..r ply enables Aurora to bid to meet any of l Enstar's unmet needs during peak winter "` / demand if Aurora has gas available. ALASKA * `,.- ' -.. _ 9► Gas storage For tthepast couple of years or so •-. � VER A'L Versatile Industrial Structures Aurora Gas has been Creek pursuing the si- r . bility of using part of its Nicolai Creesk 1 Paul Nelson: 1 - 907 - 3461319 1 Paul@alaskacoverall.com field as a gas storage facility, to help bol- J Scott Coon: 1 ScottCalaskacoverall.com ster utility gas deliverability during peak winter demand. The company wants to operate the facility for third party use, renting out storage capacity to utilities or other businesses that need to warehouse gas. The facility would be particularly • the high gas demand, vith the periods of WE PERFORM JUST ABOUT EVERY TASK especially gas demnd w facility having a fairly modest storage YOU CAN 1 M A�a I N E • . BUT OUR' capacity but the ability to deliver gas rap- idl t Aurora Gas conducted an open season MOST I M P�b�i A N T JOB for the facility in the summer of en 2009, and in May 2010 the Alaska Oil and Gas Conservation Commission approved the A use of the facility for storage. However, Fri Aurora Gas has yet to sign up any gas • storage customers. Aurora has some ideas for perhaps expanding the storage capacity some- , what, but for now the project is on hold, 7� /ii ., waiting for customers, Jones said. THE PRtoDU Pf1' • '�t' ` f f '+ ,. . ■ RS "It's still a good project and it's not y + •� 1 . .�) 1 .J'S!3 going away," he said. ,ms � - Exploration prospects ' _ le ec-+ • \ In addition to its operational gas fields, • f , Aurora Gas has several exploration — ' ..+ - . prospects under lease, both on the west '"^ .. side of the Cook Inlet and on the Kenai j Peninsula. And, although the company is � , a - . L curr fully focused on development - tt.' '�- activities in its fields, the company hopes 1 " . „ , at some time to find an indust partner -- _ _ J 1 for some new exploration. The company .. FFFr� has been hoping to shoot a new 3 -D seis- _ - ` "'` _` mic survey and re -enter an old well in the Cohoe prospect, near Kasilof on the Kenai "\ - 7 - _'o r .. w' Jc. • Peninsula, but Alaska's Division of Oil - 2 F., , and Gas has recently turned down .- Aurora's application to form a Cohoe unit, `� - L " , thus allowing the Cohoe leases to expire. - .111001..... j ' Aurora may appeal the division's decision. „`y ' Aurora Gas is 90 percent owned by . ` .. Kaiser Francis Oil Co., a company whose , interest in investing in the Cook Inlet oil t 1 and gas industry, especially in new explo- . ration, has tended to wax and wane over . ` the years. Kaiser has on occasion tried to sell its Aurora Gas interests, with recent rumors of negotiations with Apache Corp. However, although Kaiser would be will- ing to sell Aurora at what it considers to be a reasonable price, Kaiser has not been is actively pushing to sell. Jones said. "There are some interested parties and we hope to get back to them some more," r r: he said, commenting that the Aurora Gas staff has not had time recently to focus on j_JASRC Energy Services selling the company. • J a subsidiary of Arctic slope Regional Corporation Contact Alan Batley vv vv vv a s r c E N E R G Y. c o n 1 at abaiitest jpermleumnena.com Three Mile Creek #2 350 ___._.____ _____ ____ __. ____ _______ 'Eros. c '()6-t6 1`� woc C vAx, 4 3(o(ot\ \oac) tAt O Co o c\¢cks 300 300 .Lk � ' - -6-- Cum Gas 250 I Cum Water SSA 200 Jos hh )kvSt4h 150 t3o'Z 100 50 - tsss 1 • Lk•a bhk 0 ' "' O� Ok OO 0 OO OO O) ,:O t:` P J�' o � o'p 6.\ Q J�' �(d,' o' p " (i\ " Q �d' �o��� Q �d' �o J " �o`p " ���" P %� � �o`p (6A" P fd' P144 STATE OF ALASKA • klC� • ALASKL AND GAS CONSERVATION COMMISSION JA 0 2011 � �sl lull • REPORT OF SUNDRY WELL OPERATIONS i! M 1. Operations Abandon U Repair Well Li Plug Perforations U Stimulate U Other U (Arkijiwi4est Well Performed: Alter Casing ❑ Pull Tubing 0 Perforate New Pool ❑ Waiver ❑ Time Extension ❑ Change Approved Program ❑ Operat. Shutdown ❑ Perforate $ Ilk Re -enter Suspended Well ❑ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Aurora Gas, LLC Development El Exploratory ❑ f 205 - 143 3. Address: 1400 W. Benson Blvd., Suite 410 Stratigraphic Service ❑ 6. API Number: Anchorage, AK 99503 " 50 - 283 - 20116 - - 7. Property Designation (Lease Number): 8. Well Name and Number: ADL - 388233 - Three Mile Creek No. 2 " 9. Field /Pool(s): Three Mile Creek Gas Field - Belugc _. Gas Pool 10. Present Well Condition Summary: Total Depth measured 5,299 feet Plugs (measured`) none feet true vertical 4,893 feet Junk (measured) none feet Effective Depth measured 5,219 t r4 ` Packer (measured) see attached well diagram feet true vertical 4,812 feet (true vertical) see attached well diagram feet Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 13 -3/8" 68# K-55 80' 80' 1,530 psi 520 psi Surface 1,019' 9 -5/8" 36# L-80 1,019' 962' 3,520 psi 2,020 psi Intermediate Production 5,299' 5 - 1/2" 15.5# J - 55 5,299' 4,720' 4,270 psi 3,120 psi Liner 1,987' - 1,997', 2,192' - 2,212', 2,232' - 2,272', 2,502' - 2,512', 2,535' - 2,550', 2,683' - 2,703', 2,772' - 2,790', Perforation depth: Measured depth: 2,938' - 2,957', 2,980' - 2,985', 3,009' - 3,021', 3,104' - 3,114', 3,289' - 3,314', 3,507' - 3,537', 3,744' - 3,754', 3,875' - 3,895', 4,135' - 4,150', 4,427' - 4,447', 4,771' - 4,781', 4,882' - 4,892' True Vertical depth: see attached spreadsheet and well deviation survey 3 - 1/2" 9.3# L 1,892' MD 1,790' TVD Tubing (size, grade, measured and true vertical depth): 2 -7/8" 6.5# J -55 4,728' MD 4,234' TVD Packers and SSSV (type, measured and true vertical depth): see attached spreadsheet and well diagram 11. Stimulation or cement squeeze summary: Workover, Hydraulic Fracture Operations Intervals treated I (MD) 2,683' - 2,703', 2,938' - 2,957', 2,980' - 2,985', 3,009' - 3,021', 3,507' - 3,537', 4,427' - 4,447', 4,771' - 4,781', 4,882' - 4,892' Treatment descriptions including volumes used and final pressure: see attached Hydraulic Fracture Operations Summary 12. Representative Daily Average Production or Injection Data Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 90 1 0 90 Subsequent to operation:_ 0 450 30 0 110 13. Attachments: welibore biagram 14. Well Class after work: Copies of Logs and Surveys Run deviation survey Exploratory ❑ Development 0 • Service ❑ Stratigraphic ❑ Daily Report of Well Operations dated 12 -09 -10 15. Well Status after work: Oil ❑ Gas Ei + WDSPL Li well logs submitted earlier under separate cover GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG ❑ 16. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 310 -285 Contact J. Edward Jones, 281 -495 -9957 Printed Name Bruce D. Webb Title Manager, Land and Regulatory Affairs Signature \ ■. Phone 907 - 277 -1003 Date 1/5/2011 RBDMS JAN 0 4 2011 ) Form 10 -404 Revised 10/2010 Submit Original Only • Three Mile Creek No. 2 Packers and Perforations Depths PACKERS Type Measured Depth True Vertical Depth HRP Set Packer 1,923' 1,731' HRP Set Packer 2,085' 1,856' HRP Set Packer 2,589' 2,278' HRP Set Packer 2,755' 2,424' HRP Set Packer 2,886' 2,540' HRP Set Packer 3,051' 2,685' HRP Set Packer 3,399' 3,025' HRP Set Packer 3,690' 3,284' HRP Set Packer 4,224' 3,802' Arrowset Mechanical Packer 4,700' 4,277' PERFORATIONS Measured Depth True Vertical Depth 10 feet 1,987' - 1,997' 1,788' - 1,798' 20 feet 2,192' - 2,212' 1,951' - 1,971' 30 feet 2,232' - 2,272' 1,975' - 2,005' 10 feet 2,502' - 2,512' 2,202' - 2,212' 20 feet 2,535' - 2,550' 2,231' - 2,246' 20 feet 2,683' - 2,703' 2,361' - 2,381' 18 feet 2,772' - 2,790' 2,439' - 2,457' 19 feet 2,938' - 2,957' 2,585' - 2,604' 5 feet 2,980' - 2,985' 2,622' - 2,627' 12 feet 3,009' - 3,021' 2,648' - 2,660' 10 feet 3,104' - 3,114' 2,732' - 2,742' 25 feet 3,289' - 3,314' 2,928' - 2,953' 30 feet 3,507' - 3,537' 3,121' - 2,151' 10 feet 3,744' - 3,754' 3,332' - 3,342' 20 feet 3,875' - 3,895' 3,449' - 3,469' 15 feet 4,135' - 4,150' 3,701' - 3,716' 20 feet 4,427' - 4,447' 3,984' - 4,004' 10 feet 4,882' - 4,892' 4,442' - 4,452' • • AURORA GAS, LLC THREE MILE CREEK #2 (AOGCC DRLG PERMIT No. 205 -143 And SUNDRY No. 310 -285) (API No. 50- 283 - 20116 -00) W ! WORKOVER: HYDRAULIC FRACTURE OPERATIONS SUMMARY 9/6/10 —MI & RU AWS #1 rig. 9/7 -8/10 Continue RU. 9/9/10 —Fin RU. Set 2 -way check in hanger. ND tree. NU BOP. 9/10/10 —Fin NU BOP. Test BOPE to 250 /3000 psi. (Witness waived by Chuck Scheve). 9/11/10 —Pull 2 -way check. PU to remove tbg hanger. Pull 42K to release top hydraulic packer, 68K to release lower packer. Circ out, hole taking 1.5 BPM —lost 60 bbl. SI to build volume of 8.4 ppg 3% KCI brine. MI 28 bbl 50 -ppb Baraplug (salt) pill. Spot pill to 2731. Losses down to 6 BPH. Pulled 10 stds, losing 2 BPH. Start POH, losses increased to 90 BPH. Shut down to mix volume. Total Losses -266 bbl. 9/12/10 —Mix 2 nd Baraplug pill: 30 bbl w/ 80 ppb 5/25 Baraplug. Build volume, fill hole w/ 40 bbl —no returns. Mix and spot 20 bbl Baraplug pill w/ 60 ppb. Fill casing w/ 40 bbl w/o returns. Mix and pump 40 bbl 100 ppb Baraplug 50/150 pill. Hole losing 19 BPH. Build volume and pump 30 bbl —loses at 30 BPH. Mix 40 bbl LCM pill w/ 30% Baracarb 25/50/150 and 10% 600. Losses Today 292 bbl. Total losses to date- -558 bbl. 9/13/10 —Fin mix pill. Pump 16 bbl, wait 1.5 hr, pump 16 bbl. Mix another 40 bbl LCM pill like previous and spot. Losses- 6 BPH, increasing to 17 BPH. Mix and spot 40 bbl LCM pill w125% Baracarb 25 & 25% Baracarb 50/150/600. Pull 5 stds. Mix and spot 40 bbl 100 ppb Baracarb 10/25/50/100 pill— losses 6 BPH, increasing to 19 after 1 hr, and 10 BHP in 2 hr. Mix and spot 50 bbl LCM pill — losses 10 BPH. POH w/ SLM from 2545'. LD packers, sleeves, and 543' of Halliburton 3 -3/8" TCP guns. PU mule shoe and RIH to 1924'. RU Expro and run Temp. survey, losing 8 BPH. Today's Losses -231 bbl, Total Losses -789 bbl. 9/14/10— Fin run Temp/Pressure /GR/CCL log —found lost circulation at 2780'. POH and RD Expro. (Mix 50 bbl LCM pill while logging). RIH w/ tubing to 2671' and spot 10 bbl LCM pill — losses of 10 BPH. Pump 40 bbl LCM pill— losses at 6 BPH. POH w/ 1 • • tubing and LD mule shoe. PU burn -shoe mill/mud motor BHA w/ 10 3 -1/8" DC's and 20 jts 2 -7/8" HT -90 DP. RIH on tubing to tag permanent packer at 3475'. PU power swivel and mill packer w/ 10K, 85 gpm, & 460+ psi. Losing 12 BPH. Losses Today 200 bbl, Total Losses -989 bbl. 9115 /10— Milled 14" over packer in 5 h w1 110 gpm, 460 -1300 psi. No progress in 2 hrs. POH, LD motor and burn shoe. PU new burn shoe & motor and RIH. Tag packer at 3476'. Mill on over packer—excessive torque stalling motor. Ease off weight to 2 -3K (31 PU /22K SD) w185 gpm, 760 psi. Mill 12 hrs. Today's Losses -94 bbl, Total losses - 1083 bbl. 9/16/10—Continue to mill over packer at 3477' w/ 4 -5/8" burn shoe. Packer broke free after 4.75 more hours. Chased down to 3490'. Mill on packer w/ motor stalling at 1 -1.5 K. POH, LD motor and burn shoe. PU 2- 13/16" X 3" spear grapple, bumper sub, oil jars and RIH to 3493'—did not tag. RIH PU singles to find packer at 4434'. Work and spear packer. CBU. POH. Today's Losses -98 bbl, Total Losses -1149 bbl 9/17/10 -- Continue POH w/ packer. LD packer and spear assembly. PU mill and scraper and RIH to 4664' tag sand. PU power swivel and wash down to 4872' getting lots of sand —set down. Wash and ream to 4876', then wash down to 4962'. CBU. Pump 20 bbl high -vis sweep and circ out more sand. Clean pits and start BOPE test (choke manifold). Losses Today -87 bbl, Total Losses -1236 bbl. 9/18/10 Continue to clean pits. Mix and filter 180 bbl 6% KC1 brine. Displace hole w/ 20 bbl spacer followed by 145 bbl 6% KC1. POH w/ SLM, LD DP & DC's. Test BOPE ' to 250/3000 psi. (Witness waived by Bob Noble). RU Expro wireline. Today's Losses - 100 bbl, Total Losses -1336 bbl. 9 /19 /10 —RIH w/ junk basket and 4.75" GR to 2178' —could not work thru. POOH, PU 4.0" GR and RIH to 4900' w/o problems. POOH. PU 4.75" GR w/ more weight bars and RIH to 4900'. POOH. MU Weatherford UltraPack perm packer wl 10' pup, WX profile nipple, 10' pup, and PO plug w/ 0.75" seat. RIH on e -line —hung up at 2168', could not work thru. POOH. RIH w/ 4/75" GR and IB to 4900'. POOH, w/ no junk recovered. RD and release Expro. WO weather and mechanical -set packer for 5 hrs. PU Weatherford Arrowset mech packer w/ On/Off tool on top and tailpipe as before. RIH on 2 -7/8" tubing and set at 4700'. POH, LD On/Off skirt. Start PU completion. Today's Losses -109 bbl, Total Losses -1445 bbl. 9/20/10— Finish PU 9 hydraulic packers and 4 3 -1/2" frac sleeves and RIH on 148 jts of 2 -7/8" tubing. Sting onto On/Off tool at 4700'. Drop 1.0" ball and wait for 30 minutes to drop and seat. Pressure slowly to 2500 psi in 500 psi increments to set hydraulic packers — tubing jumped to indicate setting. Test tubing to 2500 psi — tubing jumped, then pressure bled off. Test casing to 1500 psi —held. RU Pollard and ran impression block on 1" sinker bars thru EOT at 4728' to 4824', indicating that PO plug had sheared early. POOH, and RD Pollard. Release latch -in and pull out of PBR on top hydraulic packer at 1911'. POH, LD 1910' (68 jts) 2 -7/8" tubing. Change out tubing tools and 2 • • pipe rams. Clean and drift 3 -1/2" tubing on racks. Today's Losses -44 bbl, Total Losses -1489 bbl. NOTE: 9 Weatherford HRP hydraulic packers set at: 4224', 3690', 3399', 3051', 2886', 2755', 2589', 2085', and 1911' and 4 - 3 -1/2" Zone Select Frac Sleeves set at 4447' (1.17" seat), 3529' (1.29" seat), 2985' (1.41" seat), and 2688' (1.53" seat). 9/21/10— Fin chg pipe rams to 3 -1/2" and test. Finish clean and drift 3-1/2" tubing, replaced 25 collars. PU and RIH w/ 60 jts 3 -1/2" 9.3# L -80 8 rd EUE tubing w/ 3.0" latch -in seal assembly. Rev circ 4 tubing volumes and spot inhibitor in annulus. Space out and land tubing w/ 5K on hanger. RU Pollard. RIH to set PX plug in 2.813" X profile at 1908' would not set. POOH. Ran impression block thru X profile —no indication. Reran plug and set in profile. No losses today. Total losses: 1489 bbl. 9/22/10 —RIH w/ prong and set in PX plug at 1908' (1921' WLM). RD Pollard. RU to test tubing — started leaking at 1500 psi. Test casing to 1500 psi —OK. RU Pollard and pulled prong and plug— determined that 3 -1/2" X 2 -7/8" X -O is just beneath X nipple and ID is too small to allow plug and prong to set in X profile.. Test casing to 2500 psi — OK. RD Pollard. Set BPV in tree, ND BOP and riser. NU tree and test to 3000 psi. Pull BPV. Start RD of rig and equipment. Total losses -1489 bbl. 9/23/10 Continue RD of AWS #1. 9 /24 /10— Continue RD and MO AWS #1. Move 6 500 -bbl RFR frac tanks to #2 location. Lay water line and start transfer water from #1 pad to tanks. Spot BJ frac equipment on location. 9 /25 /10— Finish transfer water to frac tanks. Start RU BJ frac equipment. Mix 6% KC1 into water in tanks. Start heating water w/ Pollard hot oil truck. Install tree saver. Set AG test unit and flare. Set BJ pumps and start running hard lines to well. 9/26/10— Finished heating water. Set AG tiger tank for flow back storage. RU to flow back after frac. Finish RU of BJ frac equipment. Test pump hard lines to 7000 psi. Test flowback lines to 2100 psi. Begin frac: Pump 158 bbl injection test and minifrac. Pump 1st stage: 592 bbl gelled water w/ 24,300# proppant (85% 20/40 white sand and 15% 12/20 Flexsand) at 1 -4 ppg —shut off sand early to avoid screen out; Stage 2: 230 bbl gelled water w/ 25,350# proppant at 1 -6 ppg; Stage 3: 233 bbl gelled water w/ 25,350# proppant at 1 -6 ppg; Stage 4: 809 bbl gelled water w/ 63,400# proppant at 1 -6 ppg; and Stage 5: 223 bbl gelled water w/ 21,150# proppant ramped 1 -6 ppg; and 21 bbl flush, dropping balls between stages to seat and open next sleeve. Total fluid pumped -2264 bbl and total proppant 159,400# (142,000# 20/40 sand and 17,400# 12/20 Flexsand). Max pressure --4860 psi. Shut down and watch for 15 minutes. ISIP -480 psi. 15 -rein SIP -407 psi. RD pump lines. Remove tree saver. Flow back thru AG test manifold to shaker pit. Rec. 67 bbl. Total Load -2264 bbl frac fluid+ 1489 bbl losses. Rec 67 bbl today. Load/loss water to recover -3686 bbl. 3 • • 9/27/10 -- --Flow back 89 bbl (total) overnight. SI well. RD and MO BJ frac equipment. 9/28/10 —MI and RU BJ coiled tubing unit (CTU). NU and test CTU BOP. 9/29/10— Fin RU CTU. RIH w/ 230" mill and mud motor on 1.25" CT, tag at 1900'. POH and change mill to 2.25 ". RIH. Tag at 2570' —mill. POH —CTU counter off by 100' + -- repair. RIH —tag at 2674' and mill ball and seat. Lost returns came back w/ gas when broke thru. RIH to 2971' and mill on 2 ball and seat —slow progress. POH to check BHA. SDFN. Lost 120 bbl today. Total Load /Losses to recover -3784 bbl. 9/30/10 -12 -hr SITP -700 psi. RU CT injector and test to 4000 psi. Blow down well, RIH w/ mill and motor on 1.25" CT and tag 2nd seat at 2984' -- milled out in 9 min. RIH to tag 3 1.4 ball and seat at 3528' no returns at 0.7 BPM. POH to check mill—OK. RIH and mill —could not stall out motor. POH —rec some junk. RIH w/ 2.30" 5 -blade mill and ream out seat at 2683' in 4 min. RIH to 3526' and mill. POH and LD BHA. SDFN w/ 325 psi on tree. Lost 170 bbl today —Total Losses /Load to recover -3954 bbl. 10 /1 /10 –12 -hr SITP -700 psi. RU CT injector and test to 3500 psi. RIH w/ 2.30" mill and motor on 1 -1/4" CT. Tag at 3528' —mill for 3 hrs. POH to ck mill —some wear. Call out Pollard — release CT crew for night. RU Pollard. Run 2.24" impression block — tag at 3531' (WLM). POH —some marks. Run 1.5" impression block — passed thru 3531' w/o marks. Run 2.25" pump bailer —no recovery. Run 1.75" rare -earth magnet to 3600' —rec small piece of cast iron + shavings. Run 1.9" GR to tag at 4460' (WLM). POOH. Lost 153 bbl today. Total Loss /Load to recover -4107 bbl. 10/2/10 —RIH w/ 0.75" spear on Pollard WL to 4460' to break ball on 4th seat. POOH. RD Pollard. After 4 hrs, SITP -900 psi. Run CT injector and test to 3500 psi. RIH w/ 2.25" mill and motor —tag at 3528', then RIH to 4444' and mill 4 seat. RIH and tag fill at 4953'. POH, we and RD CT. Blow down CT with N2. Start well test. STU'P --416 psi. Flow well at 200 -250 mcfpd w/ 96 BWPD. SIFBU. Built from 150 to 330 psi in 15 minutes. Gained 1 bbl net today. Total Losses/Load to recover - --4106 bbl. 10 /3 /10 —RD & MO CTU. RU to flow to sales thru test separator. 10/4/10 - 11/4/10 Flow well to sales. Average production-379 mcfpd w/ 69 BWPD. Max SIP (short SI time) --880 psi. Total Losses and Load to recover -1886 Bbls. Ed Jones 12/09/10 4 • • Aurora Gas, LLC Three Mile Creek Unit No. 2 Final Well Configuration PTD# 205 -143 9 -21-10 API# 50- 283 - 20116 -00 Rig KB 14.19 Ft Adjusted for WO: 12.95ft ,, . ' . . , Displaced 3 -1/2" x 5.5" annulus ,: ,.. ; ,.. ; ,k ; w/ 3% 8.6 ppg inhibited brine t' 1 r ' "y 4 13 3/8" 72# H40 conductor • r ` ` , `' ` ` drilled to 80'± . , .' * ,.y i `r , � ► ,, #" ` 1 "" 3 -1/2 ", 9.3# L -80 8rd EUE tubing, "4 r 4�, „+ �E O., 1,892' ' ' 1', .fk' ` .; 12 1/4” hole drilled to 1021' MD , 975 TVD. '. , . s 9.625" 36# BTC J -55 Casing to 1019" MD, �+., * " i� Cemented with 14.5 ppg Gas -Block Type I , * ' ` a cement slurry system to surface 3 -1/2" x 2.813 X Nipple 1909' 3- 1/2 "x2 -7/8" XO 1910' oric, 2 -7/8 ", 6.5# 8rd EUE tubing 04' x` 3.00" latch seal assembly @ 1911' HRP Set Packer @ 1923' 1987 -1997' r. � ...=___ __„__ � r' HRP Set Packer @ 2085' 2192 - 2212', 2232 - 2272', 1 2502- 2512', 2535 -2550' 140101 � "ti'd 1 Frac w/ 17. HRP Set Packer @ 2589' K# 2 / 40 5 0 2683 %2703' * M sand and 12/20 Flex P= 3-1/2" Zone Select Frac Sleeve, f )'" ` milled to 2.30' @ 2688' " HRP Set Packer @ 2755' 2772 -2790' HRP set Packer @ 2886' Frac w/ 52.5104 20/40 2938 - 2957', 2980 - 2985', & theft' sand and 12/20 Flex 3009 -3021' � IraillIX*RA 3 -1/ 2 "Zone Select Frac Sleeve, milled to , 2.30" @2985' HRP Set Packer @ 3051 3104 - 3114', 3289 -3314' p::lw 1114 HRP Set Packer @ 3399' Frac w/ 21K# 20/40 3 -1/2 " Zone Select Frac Sleeve, milled to sand and 12/20 Flex 3507 -3537' � gI/ � w P. ti 2.30" @ 3529' l y" HRP Set Packer @ 3690' 3744- 3754', 3875- 3895', 41354150' PION U rrrryyyy��� Frac w /21K# 20/40 M HRP Set Zone S r @ Select 4224' sand and 12/20 Flex 4427 - 4447 . �► 3-1/2" Zone Select Frac Sleeve, milled to 2.30" @ 4447' Frac w/ 25K# 20/40 ' 1 424 Arrowset Mechanical packer w/ on/off tool x 4771-4781', 4882 -4892' sand and 12/20 Flex �` nipple @ 4700' . / 1 it A 'l X- nipple @ 4719' EOT 4728' 5.5 ", 15.54, J -55 casing set ' 04 " +, , at 5299' MD Cemented with Class G TMC #2 Directional Survey N/S ENV Vertical Depth Inclination Azimuth TVD Departure Departure Sec (ft) (deg) (deg) (ft) (ft) (ft) (ft) 100.7 0.97 91 100.7 -0.01 0.85 -0.52 223.23 0.24 90.25 223.22 -0.03 2.15 -1.32 347.2 0.27 47.89 347.19 0.16 2.62 -1.45 411.86 0.3 330.38 411.85 0.41 2.65 -1.27 443.38 1.12 329.19 443.36 0.74 2.45 -0.88 474.63 2.42 320 474.6 1.51 1.87 0.08 505.85 4.09 315.66 505.77 2.81 0.67 1.85 537.1 6.07 318.72 536.89 4.85 -1.2 4.6 568.45 7.94 319.22 568.01 7.73 -3.71 8.41 599.43 9.78 320.07 598.62 11.37 -6.8 13.17 630.34 11.6 319.83 628.99 15.76 -10.48 18.89 661.66 13.71 320.27 659.55 21.02 -14.89 25.75 692.85 15.03 321.43 689.76 27.02 -19.77 33.48 724.31 16.65 321.48 720.02 33,74 -25.12 42.06 755.44 18.1 320.98 749.73 40.99 -30.95 51.36 786.86 19.78 320.34 779.45 48.87 -37.41 61.54 817.87 21.1 319.74 808.51 57.17 -44.37 72.36 849.19 22.76 321.13 837.56 66.19 - 51.81 84.04 880.4 24.79 321.59 866.12 76.02 -59.67 96.62 911.8 26.69 321.99 894.4 86.74 -68.1 110.26 942.85 28.78 322.24 921.88 98.14 -76.98 124.71 973.81 31 322.08 948.72 110.33 -86.44 140.13 1003.79 33.05 322 974.14 122.86 -96.22 156.03 1034.79 33.23 321.91 1000.1 136.21 - 106.67 172.97 1097.45 34.62 321.67 1052.09 163.68 -128.3 207.94 1160.15 34.47 321.42 1103.73 191.53 - 150.41 243.48 1222.36 34.9 321.85 1154.89 219.28 - 172.38 278.86 1284.59 34.92 322.33 1205.92 247.38 - 194.26 314.47 1346.11 34.58 322.26 1256.47 275.12 -215.7 349.53 1408.82 34.65 322.24 1308.08 303.28 - 237.51 385.15 1471.48 34.43 322.53 1359.7 331.42 - 259.19 420.67 1533.94 35.04 322.23 1411.03 359.61 - 280.92 456.26 1596.45 35.12 321.85 1462.19 387.94 - 303.01 492.17 1657.67 35.25 322.07 1512.22 415.72 - 324.75 527.44 1717.77 35.13 321.95 1561.34 443.01 - 346.06 562.07 1780.44 35 321.59 1612.64 471.29 - 368.35 598.07 1843.85 35.21 321.99 1664.51 499.95 -390.9 634.53 1906.71 35.17 321.81 1715.88 528.46 - 413.26 670.75 1967.36 35.13 321.95 1765.47 555.93 - 434.81 705.66 2029.84 34.66 321.82 1816.72 584.05 - 456.87 741.4 2092.2 34.59 321.87 1868.03 611.91 - 478.76 776.82 2154.3 34.32 321.75 1919.24 639.53 - 500.49 811.95 2216.98 34.14 322.15 1971.06 667.29 - 522.21 847.2 2279.44 33.78 322.19 2022.87 694.85 - 543.61 882.08 2342.67 34.71 322.35 2075.14 722.99 - 565.39 917.66 2405.24 34.71 322.49 2126.57 751.22 - 587.12 953.29 2465.9 33.2 322.68 2176.89 778.13 - 607.71 987.17 Page 1 of 2 I TMC #2 Directional Survey N/S E Vertical Depth Inclination Azimuth TVD Departure Departure Sec (ft) (deg) (deg) (ft) (ft) (ft) (ft) 2526.25 32.16 322.43 2227.68 804 - 627.52 1019.75 2587.52 31.75 322.17 2279.67 829.66 - 647.35 1052.18 2649.95 30.51 322.15 2333.11 855.15 - 667.15 1084.45 2711.14 29.17 321.5 2386.18 879.09 - 685.97 1114.9 2773.74 27.9 321.61 2441.17 902.51 - 704.56 1144.79 2837.22 26.72 321.86 2497.58 925.37 -722.6 1173.91 2898.32 25.39 320.83 2552.47 946.33 - 739.36 1200.73 2960.67 24.13 321.39 2609.08 966.66 - 755.75 1226.83 3022.81 22.75 321.03 2666.09 985.93 - 771.24 1251.54 3084.61 21.09 322.2 2723.42 1004 - 785.57 1274.6 3143.37 19.88 321.86 2778.47 1020.21 - 798.22 1295.16 3205.52 19.43 321.61 2837 1036.63 - 811.16 1316.06 3267.52 18.25 320.81 2895.67 1052.24 -823.7 1336.07 3331.54 16.98 320.99 2956.69 1067.28 - 835.93 1355.44 3393.1 15.47 322.33 3015.79 1080.76 -846.6 1372.63 3454.77 13.89 322.14 3075.45 1093.12 - 856.17 1388.26 3517.18 12.74 323.61 3136.18 1104.57 - 864.85 1402.63 3579.44 10.78 324.02 3197.13 1114.81 - 872.35 1415.32 3641.73 10.54 323.96 3258.35 1124.13 - 879.12 1426.84 3703.65 9.93 326.28 3319.28 1133.15 - 885.42 1437.83 3766.25 10.2 326.5 3380.92 1142.26 - 891.47 1448.75 3828.43 11.07 324.91 3442.03 1151.73 - 897.94 1460.21 3890.49 11.34 321.4 3502.91 1161.37 - 905.17 1472.26 3951.5 11.25 322.63 3562.74 1170.79 - 912.53 1484.21 4013.11 10.81 321.05 3623.21 1180.06 - 919.81 1495.99 4074.72 10.28 318.06 3683.78 1188.64 - 927.11 1507.24 4137.18 10.02 319.29 3745.26 1196.91 - 934.38 1518.22 4199.49 9.4 318.76 3806.68 1204.84 - 941.27 1528.7 4261.84 9.05 319.11 3868.22 1212.38 - 947.84 1538.68 4320.41 9.93 320.87 3925.99 1219.78 - 954.05 1548.32 4382.7 10.9 319.64 3987.25 1228.44 - 961.25 1559.57 4445.49 10.46 320.17 4048.95 1237.34 - 968.74 1571.19 4507.88 9.4 320.17 4110.41 1245.6 - 975.64 1581.93 4569.65 9.93 317.53 4171.3 1253.41 - 982.47 1592.28 4630.45 10.72 318.76 4231.12 1261.53 - 989.73 1603.14 4693.04 10.72 321.4 4292.61 1270.46 -997.2 1614.76 4755.21 10.28 321.22 4353.74 1279.3 - 1004.29 1626.09 4817.56 9.67 319.64 4415.15 1287.63 - 1011.16 1636.88 4879.83 8.79 319.99 4476.61 1295.26 - 1017.61 1646.85 4940.66 8.39 319.63 4536.76 1302.2 - 1023.47 1655.92 5003.15 7.82 318.06 4598.62 1308.83 - 1029.26 1664.71 5065.51 7.56 320.34 4660.42 1315.15 - 1034.72 1673.03 5127.89 6.86 318.76 4722.31 1321.11 - 1039.79 1680.84 5190.34 6.33 324.03 4784.35 1326.69 - 1044.27 1688 5252 5.01 325.79 4845.71 1331.67 - 1047.78 1694.09 Page 2 of 2 • ~~Q~~ 0~ aC~Q~~Q l~..o.~LLeo~~. Bruce D. Webb Manager, Land and Regulatory Affairs ~ ~~ Aurora Gas, LLC 1400 W. Benson Blvd., Suite 410 Anchorage, AK 99503 Re: Three Mile Creek Gas Field, Undefined Gas Pool, Three Mile Creek #2 Sundry Number: 310-285 ,~,~ ~ - PEA `~(~rr~ _.... Dear Mr. Webb: 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. 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 reconsideration. A request for reconsideration 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. Sincerely, ~~~ Daniel T. Seamount, Jr. Chair DATED this ~ day of September, 2010. Encl. ~2~ ~ ~ a -,.~~ STATE OF ALASKA ~ ~ 4; %~ ~ f ~j~~ ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS ~ ~ .~ "~ ~- 20 AAC 25.280 "~~` 1. Type of Request: Abandon ^ Plug for Redrill ^ Perforate New Pool ^ Repair Well ^ Change Approved Program ^ Suspend ^ Plug Perforations ^ Perforate ^ Pull Tubing Q Time Extension ^ Operations Shutdown ^ Re-enter Susp. Well ^ Stimulate ^~ Alter Casing ^ Other: fraC. job / recompletion Q , 2. Operator Name: LLC Aurora Gas 4. Current Well Class: 5. Permit to Drill Number: , Development ^~ Exploratory ^ 205-143 3. Address: Stratigraphic ^ Service ^ 6. API Number: 1400 W. Benson Blvd., Suite 410, Anchorage, AK 99503 50-283-20116-00 • 7. If perforating, closest approach in pool('s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ~ Three Mile Creek #2 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL- 388233 Three Mile Creek Gas Field - Belu a Undefined Gas pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 5,299'- 4,893' 5,219' 4812' none none Casing Length Size MD TVD Burst Collapse Structural Conductor g0' 13-3/8" 68# K-55 80' 80' 1,530 psi 520 psi Surface 1,019' 9-5/8" 36# L-80 1,019' 962' 3,520 psi 2,020 psi Intermediate Production 5,299' S-1/2" 15.5# J-55 5,299' 4,720' 4,270 psi 3,120 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,987' - 4,892' MD / 1,780' - 4,480'TVD 2-7/8" 6.5# J-55 3,496' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): Haliburton HES PHL 1,902', 2,716', and 3,475' MD / 1,710', 2,386' and 3,087' TVD 12. Attachments: Description Summary of Proposal Q 13. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ^ Development ^~ Service ^ 14. Estimated Date for 15. Well Status after proposed work: September 15, 2010 Commencing Operations: Oil ^ Gas ~ WDSPL ^ Suspended ^ 16. Verbal Approval: Date: WINJ ^ GINJ ^ WAG ^ Abandoned ^ Commission Representative: GSTOR ^ SPLUG ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Chad Helgeson 907-277-1003 Printed Name Bruce D. Webb Title Manager, Land and Regulatory Affairs Signature ~ ,~ ~ l.~ Phone 907-277-1003 Date September 8, 2010 COMMISSION USE ONLY ~ ~~~ ~ ~ N umber. ~ Conditions of approval: Notify Commission so that a representative may witness Sundry Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: ' E S-~ ~d ~ ~ ~t7 ~ O O O ~ S.~% Subsequent Form Required: (Q - Tp ~, APPROVED BY ~ ~ ~ ~ ~~ Approved by: COMMISSIONER THE COMMISSION Date: ~7"~' Form 10-403 Revised 1/2010 ORIGINAL ~ ~~-/~ Submit in Duplicate Aurora Gas, LLC • Three Mile Creek Unit No. 2 Final Well Configuration 8-25-08 • PTD# 205-143 API# 50-283-20116-00 Rig KB 14.19 Ft Displaced 2 7/8" x 5.5" annulus and tubing w/ I%- 2% inhibited brine I3 3/8" 72# H-40 conductor drilled to 80't 2 7/8", 6.5#, 8rd EUE tubing 12 1/4" hole drilled to 1021' MD , 975 TVD. 9.625" 36# BTC J-55 Casing to 1019" MD, Cemented with 14.5 ppg Gas-Block Type I cement slurry system to surface HES Hyd Packer @ 1902' MD / 1710 TVD UPPER COMPLETION Perfs 1987-1997', 2192-2212', 2232-2272', 2502-2512', 2535-2550',2683'-2703' (1780-2375' TVD) JES XD Sliding Sleeve at 2669' MD 3ES Hyd Packer @ 2716' MD / 2386 ['VD 2772-2790', 2938-2957', 2980-2994', 3009-3021', 3104-3114', 3289-3314' (2435'-2932') ~S XD Sliding Sleeve at 2731' MD ['CP Firing Head at 2769' MD ['CP guns 543' 'etmanent Packer @ 3475'MD / .08T T'VD 3507-3537', 3744-3754', 3875-3895', 4135-4150', 4427-4447', 4771781', 4882-4892' (3118-4480' TVD) {N Landing Nipple at 3484' MD 5#, J-55 casing set MD Cemented with Class G • Three Mile Creek ITnit No. 2 Final Well Configuration 8-25-08 • PTD# 205-143 API# 50-283-20116-00 Rig KB 14.19 Ft Displaced 2 7/8" x 5.5"annulus and tubing w/ 1%- 2% inhibited brine 13 3/8" 72# H-40 conductor drilled to 80'f 2 7/8", 6.5#, 8rd EUE tubing 12 1 /4" hole drilled to 1021' MD , 975 TVD. 9.625" 36# BTC J-55 Casing to 1019" MD, Cemented with 14.5 ppg Gas-Block Type I cement slurry system to surface ~S Hyd Packer @ 902' NID UPPER COMPLETION _ Perfs 1987-1997 (`?'I'VD), 2192- 2212',2232-2272' (1948-2014'TVD) 2502-2512', 2535-2550' (2204-2252' TVD) 2683-2703', 2772-2790', 2938-2957', 2980-2994', 3009-3021', 3104-3114' 3289-3314' 3507-3537', 3744-3754', 3875-3895', 4135-4150', 4427-4447', 4771781', 4882-4892' (3118-4480' TVD) JETS XI) Sliding sleeve at 2669' JES Hyd Packer @ '.716' MD JES XD Sliding sleeve at 2731' 'CP Firing Head at 2769' 'CP guns 543' 'ermanent Packer @ 3475'NID aT Landing Nipple at 3484' 5#, J-55 casing set MD cemented with Class G unora Gas ~« www.aurorapower.com ~°~ ~ September 3, 2010 Mr. Dan Seamount Chairman Alaska Oil and Gas Conservation Commission 333 West 7~' Ave., Suite 100 Anchorage, Alaska 99501 Re;Application for Sundry Approval Three Mile Creek #2 Development Gas Well Dear Mr. Seamount: E, Attached, please find Aurora Gas, LLC's application for workover operations on the Three Mile Creek #2 gas well. The plan calls for pulling the tubing, cleaning out the well bore (if necessary), performing hydraulic fracture operations, testing existing perforations, ,and ~' installing tubing and packers. For more detailed information, please refer to the Workover / Recompletion Procedures. Thank you for your consideration and assistance. Should questions arise in connection with this request, please contact Mr. Chad Helgeson in the Anchorage office at (907) 277-1003. Respectfully Submitted By, ~~~ Bruce D. Webb Manager, Land and Regulatory Affairs attachments 1400 West Benson Blvd., Suite 410 • Anchorage, AK 99503 • (907) 277-1003 • Fax: (907) 277-1006 6051 North Course Drive, Suite 200 • Houston, TX 77072 • (281) 495-9957 • Fax: (281) 495-1473 °~~~ -y 'e. 1.3 ~~ v~ L 1.1 I ~.J STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25280 ' 1: ~;1 ~ ~ ~ 1 :+ ~'T 4~91ifJJ193 Zt 1. Type of Request: Abandon ^ Plug for Redrill ^ Perforate New Pool ^ Repair Well ^ proved Pr ram Suspend ^ Plug Perforations ^ Perforate ^ Pull Tubing ^/ Time Extension Operations Shutdown ^ Re-enter Susp. Well ^ Stimulate Q • Alter Casing ^ Other: fraC, jOb / recompletion Q, 2. Operator Name: Aurora Gas, LLC 4. Current Well Class: 5. Permit to Drill Number: Development Q , Exploratory ^ 2Q5-143 3. Address: Stratigraphic ^ Service ^ 6. API Number: 1400 W. Benson Blvd., Suite 410, Anchorage, AK 99503 50-283- 116-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No [~] Three Mile Cr #2 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL- 388233 , Three Mile Creek Gas Field - Belu Undefined Gas I 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD {ft): Effective Depth MD (ft): Effective Depth TVD {ft): Plugs (measure Junk (measured): 5,299' 4,899' 5,219' 4822' none none Casing Length Size MD TVD Burst Collapse Structural Conductor g0' 13-3l8" 68# K-55 80' 80' 1,530 psi 520 psi Surface 1,021' 9-5/8" 36# L-80 1,021' 9 3,520 psi 2,020 psi Intermediate Production 5,299' S-1/2" 15.5# J-55 5,299' 4,720' 4,270 psi 3,120 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (f)): Tubing Size: Tubing Grade: Tubing MD (ft): / 2,192' - 4,892' MD / 1,948' - 4,480'TVD 2-7/8~ 6.5# J55 3,496' Packers and SSSV Type: c rs and SSSV MD (ft) and TVD (ft): , Haliburton HES PHL 2,150', 2,475', and 3,475' MD / 1,910', 2,213' and 3,151' TVD 12. Attachments: Description Summary of Proposal Q C/J 13. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch„ ^ Exploratory ^ Development ^/ Service ^ 14, Estimated Date for 15. Well Status after proposed work: Commencing Operations: Septemb~r 15, 010 Oil ^ Gas 0 _ WDSPL ^ Suspended ^ 16. Verbal Approval: Date: WINJ ^ GINJ ^ WAG ^ Abandoned ^ Commission Representative: GSTOR ^ SPLUG ^ 17. I hereby certify that the foregoing is true and correct to a best of my knowledge. Contact Chad Helgeson 907-277-1003 Printed Name Bruce D. Webb Title Manager, Land and Regulatory Affairs Signature ~ 1~ Phone Date J 907-277-1003 September 3 t. 2010 ` , COMMISSION USE ONLY Conditions of approval: Notif Commi ion so that a re resentative ma witness Sund Number: ~,~~'~ y p y ry , Plug Integrity ^ P Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: Subsequent F m Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Form 10-403 Revised 1/2010 O t'( 11'7 ~ (v ~ L Submt n Dupfi at~ /`~ i ~ Aurora Gas, LLC THREE MILE CREEK #2 2010 R/G WORKOVER; FRAC PROCEDURE Version 1.2 CAPACITIES: 2-7/8" Tubing: O.OOS79 bbl/ft and 5-1/2" 15.5# Casing: 0.0238 bbl/ft S-1/2" Casing X 2-7/8" Annular Volume: 0.0158 bbl/ft. Casing ID/ Drift ID is 4.950'/ 4.$25" ; 3-1/2" 93#Tubing--0.00870 bbl/ft. 3-1/2" X S-1/2" Annulus-0.0119 bbl/ft Tubing Volume to first Sliding Sleeve is 15.45 bbl and to 2na Sliding Sleeve is 15.81 bbl. Annular volume to top Packer is 30.1 bbl. Circulation volume expected to be 60-90 bbl depending upon fluid level. Casing vol. to deepest perf: 116.4 bbl. 8.45 ppg brine left in tbg-csg annulus. KB= 14.2' above GL (all depths from KB). PBTD-5220' MD/ 4814' TVD; TD=5299'MD/ 4893' TVD TUBING/COMPLETION: Tubing ID=2.441". Drift ID=2.347" HES Hydraulic Packer at 1902' HES XD Sliding Sleeve at 2669'-2.313" Xprofile--CLOSED ~ HES Hydraulic Packer at 2716' HES XD Sliding Sleeve at 2731'-2.313" Xprofile--OPEN HES TCP Gun at 2769'-543' length HES 5-1/2" X 3.00" BWD Permanent Packer at 3475' w/ 18' stinger incl. 2.205" XN nipple. Bottom of Tubing (Wire-line Entry Guide}-3496'. EXISTING PERFS (MD): 1987-97', 2192-2212', 2232-72', 2502-12', 2535-50', 2683- 2703', 2772-90', 2983-2957', 2980-94', 3009-Z1', 3104-14', 3289-3314', 3507- 37', 3744-54', 3875-95', 4135-SO', 4427-47', 4771-4781', 48$2-92'. 1) Prior to moving in rig, a) RU Pollard and open sleeve at 2669' and test well for water and sand and gas rate. b) Shut in well (all tree valves including SSV). Disconnect flow line downstream of SSV. Disconnect controls and put in safe place-use care to avoid damaging. (Need Work Permit from Operators to do so). Remove well houses from well and set aside out of the way. 2) Move in, rig up AWS #1 rig w/ single workover pit for mud system (not AG rnud system) and support equipment only as needed (one gen set, 1 mud pump, etc.) 3) Starting with clean mud pit, mix 150 bbl (usable volume) 8.45 ppg 6% KCl brine (6% KCl-21#/bbl), using clean produced water from Lone Creek #1 or Tiger tank at Moquawkie #4 (if tested in good condition and no weight material in it) (use clean fresh water to make up any needed volume-have water well on #1 location functioning and cleaned up). 4) RU to pump down tubing thru swab valve on tree. RU to take returns from casing valve (after packers are released). Lubricate in sufficient volume to kill well (expected to be 20-30 bbl max.). When well is dead, set 2-way check in tree. • i ND tree. NU 3000-psi BOP.. Test BOP t 300~psi or as required by AOGCC. / Pull 2-way check. (Mobilize Halliburton pa-cker service man to location for next step). 5) Latch onto tubing hanger and pull upward tension to release packers-should take 35,000# over string weight to release each packer of the 2 hydraulic-set packers- the effect may be somewhat cumulative (due to distance between packers-keep total pail on tubing less than 80,000# if possible (absolutely less than 90,000#). Shut annular after releasing first packer and watch for gas bubble from space between packers. If none, release second packer if not released simultaneously w/ first. Reverse circulate tubing volume as needed at low rate to get any gas out of tubing-minimum of 90 bbl. Monitor well to watch for losses and/or gas. POH standing back 2-7/8" tubing, laying down packers and TCP guns--strap out of hole. Monitor hole and keep full. (TCP guns to go back to Halliburton). ~ 6) PU Weatherford motor and Baker mill (Burn Shoe) and run on 2-7/8" tubing to 3475' to mill over and release BWD permanent packer at 3475' (See Halliburton procedure for milling packer), PU additional 2-7/8" tubing (55-56 jts) as needed. Mill over and push packer to bottom. Push packer to bottom noting depths any fill is encountered, Catch samples of fill if can and circulate back to surface if fill found before reaching bottom and POH. ?) PU bit and scraper and RIH to +/-5000'. Circulate hole clean w/ clean 8.45 ppg 6% KCl brine, and filter brine until it is 8.45 ppg and clean throughout (thru 5 micron sock filters). Monitor fluid level--determine rate of loss, if any. POOH with tubing. LD scraper and bit. ALTERNATIVE: If hole will not stay full or if circulation cannot be established, may need coiled tubing and Weatheford Cyclone Bailer. Then make bit and scraper run. . If circulation is possible but losses are high, consider Baraplug or Baracarb pills (see end of Procedure) for FL control-however, light acid treatment may be required to clean up Baracarb, so avoid if possible. 8) RU electric line unit (Expro or SLB). Run GR/CCL correlation log and correlate to open hole logs or CBL. Pick up: a) Flow-thru Pump-Out Setting Plug w/ seat for 1.0" ball, b) 10' 2-7/8" pup joint, c) 2.31" WX profile nipple, d) 10' 2-7/8" pup joint, e) 5-1/2" X 3.0" U1traPak wireline-set permanent seal-bore Packer w/ 3" bore and tubing adapter packer bottom sub, run on wireline, and set top of packer at 4700'. RD logging unit. 9) PU frac string consisting o£ a) 3" threaded Anchor Latch Seal assembly, b) 8 jts 2-7/8" tubing (249'), c) 3-1 /2" box X 2-7/8" pin X-O sub, • d) 3-1/2" Single-shot Frac Sleeve w/ 1.17"ball seat (to be set at +/- 4446"), e) 2-7/8 box X 3-1/2" pin X-O sub, f) 7 jts (217') 2-7/8" tubing, g) HRP hydraulic-set Packer (set w/ top at +/-4223'), h) 17 jts 2-7/8" tubing (527'), i) HRP hydraulic-set Packer (set w/ top at +/-3690'), j) 5 jts (155') 2-7/8" tubing, k) 3-1/2" box X 2-7/8" pin X-O sub, 1) 3-1/2" Single-shot Frac Sleeve w/ 1.29" ball seat (set at +/-3530'), m) 2-7/8 box X 3-1/2" pin X-O sub, n) 4 jts 2-7/8" tubing (124'), o) HRP hydraulic-set Packer (set wl top at +/-3400'), p) 11 jts 2-7/8 tubing (341'), q) HRP hydraulic-set Packer (set w/ top at 3053'), r) 2 jts of 2-7/8" tubing, s) 3 -1 /2" box X 2-7/8" pin X-O sub, t) 3-1/2" Single-shot Frac Sleeve w/ 1.41"ball seat {to be set at 2986'), u) 2-7/8 box X 3-1/2" pin X-O sub, v) 3 jts (93') 2-7/8" tubing, w) HRP hydraulic-set Packer (set w/ top at +/-2887'), x) 5 jts (155') 2-7/8" tubing, y) 3-1/2" box X 2-718" pin X-O sub, z) 3-1/2" Single-shot Frac Sleeve w/ 1.53"ball seat (to be set at 2727'), aa) 2-7/8 box X 3-1/2" pin X-O sub, bb) 4 jts (124') 2-7/8" tubing, cc) HRP hydraulic-set Packer (set w/ top at +/-2597'), dd) 16 jts (496') 2-7/8" tubing, ee) HRP hydraulic-set Packer (set w/ top at +/-2095'j, ff) 5 jts (155') 2-7/8" tubing, gg) HRP hydraulic-set Packer (set w/ top at +/-1934'), hh) 6' 2-718" tubing pup, ii) 3" bore PBR receptacle w/ threaded latch profile, jj) 3" threaded Latch Assembly, kk) 3-1/2" box X 2-7/8" pin X-O sub, 11) 10' 3-1/2" L-80 pup joint, mm) 2.813" WX landing nipple, and nn) 3-1/2" 9.3# L-80 8-rd EUE frac string to surface (+/-61 jts + pups, +/- 1910') 10) Sting and latch into Permanent packer at 4700' . Install new tubing hanger. Space out and land tubing in tree w/ tension or set-down, as required. 11) Drop 1" ball and pressure tubing to 3000+ psi to set inflatable packers and to pressure test tubing. When packers are set and tubing has tested for 15 minutes, j increase pressure to 3500 psi to pump out ball and seat. Pressure test casing to 2000 psi. i 2) ND BOP. NU and test tree. • • 13) Release AWS rig and rig down, move out (pull containment, rig mats, etc.) 14) Move in Bea 500-bbl frac tanks and fill with fresh, clean water. Stage on east end of location. Use rain For rent Supervisor to help set-up and manifold tanks (Far right edge}. 15) Heat frac water to +/- 100 degrees (2 days of heating to keep fluid about 80 deg when mixed). BJ to premix KCl and other additives not "mixed on the fly." 16) Schedule mobilization of coiled Tubing Unit w/ 1-1 /2" CT to be on location the day of the frac. Also, schedule Pollard to be on location that day with a slick line unit. 17) RU BJ to frac. Install 10,000-psi tree saver, frac valve, and manifolding, Pressure test lines (to frac valve) to 5000 psi (max expected surface pressure to be ~ less than 4000 psi). 18) Pump frac at 20 BPM keeping pressure below 5000 psi (expected max-3000): A. First stage (perfs at 4781-4892'----20' perfs / 121' gross interval) (1) 2100 ga16% KCl water (2) 1050 gal Lightning 2000 mini frac (3) 2100 gal 6% KCl miniflush (4) 12,000 gal Lightning 2000 Pad (5) 2500 gal Lightning 2000 w/ 1 ppg proppant blend (87.5% white 20/40 sand and 12.5% 12/20 F1exSand MSE) (6) 2500 gal Lightning 2000 w/ 2 ppg proppant blend (7) 2500 gal Lightning 2000 w/ 3 ppg proppant blend (8) 2500 gal Lightning 2000 w/ 4 ppg proppant blend (9) 2500 gal Lightning 2000 w/ 5 ppg proppant blend (10) 2500 gal Lightning 2004 w/ 6 ppg proppant blend (11) 1431 gal (34.1 bbl) 6% KCl Flush, dropping 1.74" ball after 5 bbl. Stage Total= 33,681 gal (801.9 bbl) and 52,500# proppant B. When ball seats, increase pressure to 2000 psi to open Frac Sleeve at 4446'. Begin pumping Stage 2 at 20 bpm at less than 5000 psi (expected pressure is less than 2500 psi}-perfs at 4427-47'-20' of perfs l 20' gross interval) 1. 2100 ga16% KCl water 2. 1050 gal Lightning 2000 mini frac 3. 2100 gal 6% KCl miniflush 4. 3,000 gal Lightning 2000 Pad 5: 1000 gal Lightning 2000 w/ 1 ppg proppant blend (87.5% white 20/40 sand and 12.5% 12/20 F1exSand MSE) 6. 1000 gal Lightning 2000 w/ 2 ppg proppant blend 7. 1000 gal Lightning 2000 w/ 3 ppg proppant blend 8. 1000 gal Lightning 2000 w/ 4 ppg proppant blend 9. 1000 gal Lightning 2000 w/ 5 ppg proppant blend 10. 1000 gal Lightning 2000 w/ 6 ppg proppant blend i 1. 1317 gal (31.4 bbl) 6% KCI Flush, dropping 1.89" ball after 1 bbl. • Stage Total= 15,297 gal (364.2 bbl) and 21,000# proppant. C. When ball seats, increase pressure to 2000 psi to open Frac Sleeve at 3530'. Begin pumping Stage 3 at 20 bpm at less than 5000 psi (expected pressure is less than 2500 psi) perfs at 3507-37'-30' of perfs / 30' gross interval) 1. 2100 gal 6% KCl water 2. 1050 gal Lightning 2000 mini frac 3. 2100 gal 6% KCl miniflush 4. 3,000 gal Lightning 2000 Pad 5. 1000 gal Lightning 2000 w/ 1 ppg proppant blend (87.5% white 20/40 sand and 12.5% 12/20 F1exSand MSE) 6. 1000 gal Lightning 2000 w12 ppg proppant blend 7. 1000 gal Lightning 2000 w/ 3 ppg proppant blend 8. 1000 gal Lightning 2000 w/ 4 ppg proppant blend 9. 1000 gal Lightning 2000 w/ 5 ppg proppant blend 10. 1000 gal Lightning 2000 w/ 6 ppg proppant blend i 1. 1094 gal (26.1 bbl) 6% KCl Flush, dropping 2.04" ball after 1 bbl. Stage Total= 15,344 gal (365.3 bbl) and 21,000# propant. D. When ball seats, increase pressure to 2000 psi to open Frac Sleeve at 2986'. Begin pumping Stage 4 at 20 bpm at less than 5000 psi (expected pressure is less than 2500 psi}--perfs at 2938-3022'--45' of perfs / 84' gross interval) 1. 2100 gal 6% KCl water 2. 1050 gal Lightning 2000 mini frac 3. 2100 ga16% KCl miniflush 4. 14,500 gal Lightning 2000 Pad 5. 2500 gal Lightning 2000 w/ 1 ppg proppant blend (87.5% white 20/40 sand and 12.5% 12/20 FlexSand MSE) 6. 2500 gal Lightning 2000 w/ 2 ppg proppant blend 7. 2500 gal Lightning 2000 w/ 3 ppg proppant blend 8. 2500 gal Lightning 2000 w/ 4 ppg proppant blend 9. 2500 gal Lightning 2000 w/ 5 ppg proppant blend 10.2500 gal Lightning 2000 w/ 6 ppg proppant blend 11.962 gal (22.9 bbl) 6% KCl Flush, dropping 2.19" ball after 1 bbl. Stage Total= 35,712 gal (850.3 bbl} and 52,500# propant. E. When ball seats, increase pressure to 2000 psi to open Frac Sleeve at 2727'. Begin pumping Stage 5 at 20 bpm at less than 5000 psi (expected pressure is less than 2500 psi}--perfs at 2683-2792'--40' of perfs / 109' gross interval) 1. 2100 ga16% KCl water 2. 1050 gal Lightning 2000 mini frac 3. 2100 gal 6% KCi miniflush 4. 14,500 gal Lightning 2000 Pad U 5. 2500 gal Lightning 2000 w/ 1 ppg proppant blend (87.5% white 20/40 sand and 12.5% 12/20 F1exSand MSE) 6. 2500 gal Lightning 2000 w/ 2 ppg proppant blend 7. 2500 gal Lightning 2000 w/ 3 ppg proppant blend 8. 2500 gal Lightning 2000 w/ 4 ppg proppant blend 9. 2500 gal Lightning 2000 w/ 5 ppg proppant blend 10.2500 gal Lightning 2000 w/ 6 ppg proppant blend 11.899 gal (21.4 bbl) 6% KCl Flush, Stage Total= 35,649 gal (848.8 bbl) and 52,500# propant. F. SD pumps, record ISIP. Monitor pressure until about 0. Close frac valve and start RD BJ. RU to flow back to mud pit over shaker w/ball catcher in flowline-line should be 3" to ball catcher. Be prepared to transfer fluid to frac tank (and haul to Aspen disposal). 14) Open well to pit-monitor gas and sand return. If gassy and little sand-put thru gas buster. 15) If/when well dies, RU Pollard with 1.5" sinker bar, RIH and tag sand. If sand fill is encounter, run bailer in hole and attempt to work thru any bridges--get sample. 16) If needed, RU 1-1 /4" CTU w/ N2 and w/ motor and 2.31 "mill, RIH and clean out sand, drilling out frac sleeve ball seats (and any balls that did not flow back) at 2732', 2991', 3535' and 4451' to latch-in seal assembly at +I-4700'. Pump 9.0 ppg 6% KCl water (or clean returned frac fluid), viscosify if necessary. POH w/ motor and bit. 17) PU 2.0 to 2.25" jet nozzle and RIH on CT thru end of tubing at 4725', circulating while RIH. RIH to tag sand-attempt to circ clean to +/-4990'. 18) RU Aurora Gas Test Unit as follows: a) set test choke manifold close to rig choke skid and connect to w/ 1502 hard line; b) insta1124/64" positive choke in manifold (left side)-- use 2" 1502 target tees upstream of choke skid; c) run AG 2" 1502 hard line from choke manifold to test separator; d) set flare stack 100' or more from the rig and from trees and raise stack; and e) lay AG 3" 1502 hard line from separator skid to flare stack, and connect propane bottle to flare stack. 19) Prepare for test: a) Take and record initial measurements of brine levels in all tanks to which swabbed/flowed back brine will go-know exact volume of brine is in all tanks; b) Record test separator water meter reading; c) install new chart on Barton recorder; d) install fresh nitrogen bottle onto skid for instrumentation; e) install new 2000 psi pressure gauge near test head, isolated with needle valve (upstream from valve that will shut in well for buildup-will want it to record and show SI pressures), and fj confirm electric clock on chart recorder is on and set to 12 hrs and chart is appropriate for clock time. • 20). Pull up hole with nozzle on CT and jet well in if it is not flowing. Jet/Unload as necessary to flow back frac fluid. When water diminishing and/or gas becomes strong, go to next step and test well. 21) Flow test well as follows until clean and stable, as follows: a) jet in w/ N2 as necessary, unloading fluid to shakerlpossum belly until well is gassing and/or kicks off to flow; b) when significant gas is at surface (whether swabbing or flowing) or the well is flowing, divert flow to test separator: i) shut down momentarily to light flare stack, then bring back on, adjusting choke size until well is flowing strongly to cleanup, but holding some back pressure on it (probably start at 14/64's and adjust accordingly, target flow at 75% of SIP. ii) Flow until rate and pressure have stabilized for 15 minutes, increasing slightly is OK, but dropping is not-wait until fluctuations tend to be up, not down) and water has dried up (all of tubing volume + casing volume to 3000' has been recovered, l9 bbl at a minimum) or rate has stabilized . Flow for a minimum of 1 hour. Probably more (2-3 hours), depending upon water production and cleanup. Watch for sand production in water. If producing any sand or much water, shut in and call. iii) Start w/ 1" orifice in test meter. Flow rate in mcf/day= static reading (blue) X differential reading (red) X 31, If red chart reading is below 3, change to 0.75" orifice; if it is above 8 change to 1.5", then 2.0" orifice. Meter factors change to 17.4, 70, or 130, respectively. Orifices may be changed by experienced operator while flowing w/the Daniel Sr. orifice fitting. iv) Catch. water samples thru out (downstream of test separator}-have tested with mud kit for weight-record with time of sample. Produced water should have weight is less than 8.4 ppg-if water is trending in that direction, continue to flow until these properties have stabilized. Keep last sample of produced water to send to lab in Anchorage-label thoroughly. v) Shut in well for buildup twice as long as flow period (could build up to about 1200 psi, but will likely be less-800 psi. or so). Report test results to me (Ed}--including email report of flow and buildup tests. If well is making significant water, well will be killed, the packer pulled, a test packer run, and the f water production will be isolated-a Supplementary Procedure will be provided for this operation. 22) When test is completed, evaluate tests-may leave all zones open. Put well on production to compressor from that zone. NOTES: BARACARB Pill Recommendations When mixing and pumping a BARACARB pill, it will not be necessary to mix the pill in saturated brine, or pump a saturated brine buffer before and after the pill. Mix pill in order listed below. With the small volume of the pill, you can omit manipulating the pH, so it will not be necessary to mix the citric acid and KOH. On larger pills, manipulating the pH can allow you to mix the N-VIS and DEXTRID at a quicker pace. BARAZAN D+ can be substituted for the N-VIS. Both of these products are xantham gums, N-VIS is just a clarified xantham gum. Before mixing the BARACARBs in the pill, ensure you have a FV ~60+, o~ the BARACARBs will fall to the bottom of the pit. A rule of thumb is if you would not be comfortable with the fluid suspending barite, I would not start mixing the BARACARBs. The finished pill should be thick, along the lines of the same consistency of a high vis sweep, not too thick to pump though. Usually by the time you have suspended all of the BARACARB, the pill is pretty thick. BARACARB 50 Pill Product Concentration KCI base brine 0.921 bbl BARADEFOAM HP As needed Citric Acid 0.5 ppb N-VIS 2 ppb DEXTRID 4 ppb KOH As needed pH 9.0 BARACARB 50 50 ppb ALDACIDE G 0.25 b BARACARB 25/50 Pill Product Concentration KCi base brine 0.921 bbl BARADEFOAM HP As needed Citric Acid 0.5 ppb N-VIS 2 ppb DEXTRID 4 ppb KOH As needed pH 9.0 BARACARB 25 20 ppb BARACARB 50 30 ppb ALDACIDE G 0.25 b Special Mixing Instructions: • Mix in order as fisted • Add polymers slowly to minimize fisheyes. 6%KCI Brine Material Requirements 6% KCl Water - 0.976 bbls KCl - 21.8 ppb 1 pallet of KCl has 56 sacks (50 pounds per sack) Per pallet of KCI, 128 bbls of 6% KCl can be mixed 1) 3% KCI Saturated NaCI brine 0.888 bbls Water 11 ppb KCI 98 ppb NaCI Saturation will be a 9.9+ ppg MW 3% KCI 0.989 bbls Water 11 ppb KCI 2) BARAPLUG Perf PIII (Note: Barazan can be substituted for N-Vis, but it is dirtier). Product Concentration Saturated NaCI Brine 0.83 bbl BARADEFOAM HP 0.1 ppb or as needed Citric Acid 0.5 ppb N-VIS 2 ppb or as needed for 35 YP DEXTRID 4 ppb KOH As needed pH 9.p BARAPLUG 50 50 ppb NaCI (Salt) 10 ppb ALDACIDE G 0.25 b Ed Jones 9/1/10 Rev 1.2 Chad Helgeson 9/3/10 • Perforations in black notfrac'd. No frac sleeves run between packers NOTE: ALL DEPTHS MD Packer 1934-1940' 1987-1997 < Packer 2095-2101' 2192-2550' < < Packer 2597-2603' 2.19" OD ball / 2.06" 1D ball seat 2727-2732' 2.04" OD ball 11.92" ID ball seat 2986-2991' 2683-2703' < TSUGA 2-42 2772-2792' r~.~~ Packer 2887-2893' < < 2938-29_58' < 'TSUGA 2-4.3 2981-2993' < c 3009-3022' < TSUGA 2~1.3B < Packer 3053.3059' 3104-3114' ~ TSUGA 2-4.5 < 3289.3314' ~ Packer 3400-3406' 3507-3537 < 1.89" OD ball / 1.77" ID ball seat TSUGA 2-5.2 ~ 3530.3535' Packer 3690.3696' 1.74" OD ball / 1.65" iD ball seat 4446-4451' 3744-3754' < TSUGA 2-5.4 < 3875-3895' TSUGA2SS 4135-41511' < TSUGA 2-5.7 Packer 4223-4229' 4427-4447 < TSUGA 2-6.1 < t 4700' Packer 4700-4703' EOT 47245" 4771-4781' < TSUGA 2-6.3 < 4882-4892' < TBGGA 2-6.4 ~ -- 3-112" 93# EUE, L-80 frac string -- - WX taeding nipple, size3-1/2" witk 2.813" packing ---Pup jofnt 10 R long, 3-112" 93# EUE, L.80 frac string 3-112" x 2-718" crossover sob - -3" threaded latch assy. Minimum H)=238" 3" bore P$R receptacle with threaded latch profde. Maximum OD = 4.75" 2-7/8" x 6 tt pup joint NOTE: All tubing below this point is 2-7/8"EUE, JSS ~"_~_, Aurora Gas. LLC AGA(~~ Three Mile Creek 2 c.Ap"w. a r.m=x~o sy.~ prepared For: Mr. Ed Jones & Mr. Chad Elgesoa Prepared By: Scott Williamson Date Prepared: 08-31-10 Rev E HRP hydraulic set retrievable casing packer with straigbt pull adjustable shear release to fit 5-1/2" 155# casiog. 2-7/8" EU 8rd boa a pia Maximum OD = 4.641." Minimum ID = 238" Length = 6.28 tt NOTE: Typical of all packers illastrated eaeluding bottom packer ZooeSelect Single Shot frac sleeve, size 3-112" with 3-1/2" EU 8rd boz z pin, L-80 Sleeves have variable size cast iron ball seats Maximum OD = 450" Minimam ID (uashiBed) = Varies wkh ball seat ID from 1.65-2.06° (4 sleeves total) Drilbut ID ®2.375" as per mill OD Length (w/crossovers above and below) = t 5 ft Sleeve set to open at 2,000 psi applied pressure after landing ba0 on seat NOTE: Typieal of all frse sleeves illustrated 2-718" r 3-1/2" crossover sub. NOTE: Typical on all frac sleeves Maximum OD = 3.75" Minimum ID = 2.441" 3-1/2" x 2-7/8" crossover sub. NOTE: Typical on all frac sleeves Maximum OD = 4.50" Minimum ID = 2.441" 3" threaded Istch seal assy to fit UltraPak packer. Min ID = 2360" UltraPnk wireline set permanent seal bore packer with 3" bore to fit 5-1/2" 155# acing. Maximum OD = 4.600" Minimum H) = 3.0011" Tubing adapter packer bottom with 2-718" pin down. Minimum ID = 2.441" 2-78" a 10 ft pup joint WX landing nipple, size 2-718" with 2313" packing bore 2-7/8" x 10 ft pup joint Pump out plug with ball sat 1" seat ID & 1-1/4" OD ball. Pinned to shear out at+-3,500 psi WELL NAME: THREE MILE CREEK~2 FIELD: THREE MILE CREEK COUNTY, STATE: KENAI PEN. BOR., (WEST SIDE OF COOK INL RESERVOIR: BELUGA (TSUGA 2-3 TO 2-6 AT 2192-4892' C~ * Wichert-Aziz correction for contaminants, if any WELLHEAD TEMP, °F: 40.0 SOUR GAS MOLE BOTTOMHOLE TEMP, °F: 78.0 NZ 1.20 WET GAS GRAVITY: 0.562 COZ 0.21 TVD, FEET: 3,083 HZS 0.00 COND. CORR? (Y/N): N Corrected* Tc, °R: 343.09 Corrected* Pc, Psia: 671.54 ~ Ryder Scott ~~ Reservoir ,' ,~ ALASKA Solutions ~ ~ `~ ngled) (Public) (Protected) Least Squares Mean Fit Results Y-Intercept, BHP/z 1,250 OGIP, MMCF 426 EUR, MMCF 395 Recovery Factor 0.9283 BHP/z Cad Abandonment 91 2,OOt) 1,800 •LSMFData OExcl.Data •EUR=395 •OGIP=426 1,600 1,400 1,200 m .~ a N1,000 'a 8 m soo soo O 400 '~ 200 0 ..~.~.. ..._..~ 0 50 100 150 200 250 300 350 400 450 Cumulative Production, MMcf POINT NUMBER (Automatic) DATE (Optional) SITP, Psia BHP, Psia Z BHP/Z, Psia CUM PROD, MMcf LSMF Include? (Y/N) 1 11/1/2005 1,460 0.8405 1,737 0 N 2 5/1/2006 1,020 1,097 0.8714 1,259 2 Y 3 _ _ _ 2/1/2007 520 556 0.9305 598 69 n 4 3/26/2007 715 767 0.9062 846 77 n 5 4/27/2007 735 788 0.9037 872 77 n 6 11 /20/2007 465 497 0.9376 530 121 n 7 i 12/8/2007 375 401 0.9494 422 125 n 8 5/28/2008 359 384 0.9515 . 403 137 n 9 ~ 7/30/2008 670 718 0.9117 788 137 y 10 ~ 5/7/2009 640 686 0.9154 749 162 y 11 5/21 /2009 595 637 0.9210 692 162 n 12 9/1/2009 635 680 0.9160 743 162 n 13 _ 2/15/2010 685 734 0.9098 807 175 Y Points 6 & 7 are short-term SITP from PL EFM at tre Likely water in the well bore--making 6 BWPD. -_ ___ Point 8 is SPIDR reading after about 15 days SI Point 11 is 3 day buildup w/SPIDR after longer SI Point 10 is LT SITP from tree gauge Pont 9 is LT SITP from tree gauge These results were prepared using Ryder Scott's Gas Material Balance . This is not Ryder Scott work product. AURORA GAS, LLC THREE MILE CREEK 2 VOLUMETRIC RESERVES (100% GROSS) Current FRAC PROPOSAL ZONE MD DEPTH TVD PERF FT NT NET PAY BHT de F Est BHP sia Z POR % Sw % OGIP mcHac-ft AREA Ac RF % RESERVE' /ZONE to MDT NT NT MMF TSUGA 2-6.4 4882 4892 4470 10 10 93.702 756 0.92 17 % 44 % 219 60 80% 105 TSUGA 2.6.3 2227 4771 4781 4360 10 12 92.481 754 0.92 17 % 48 % 200 60 80% 115 TSUGA 2-6.1 2259 4427 4447 4022 20 20 88.697 749 0.92 19% 48% 219 60 80% 210 TSUGA 2-5.7 2088 4135 4150 3734 15 11 85.485 744 0.92 25°h 49% 284 60 80% 150 TSUGA 2-5.5 1502 3875 3895 3479 20 19 82.625 740 0.915 18% 45% 229 60 80% 209 TsuGAZSS 16oz 3744 3754 3340 10 10 81.184 738 0.91 20% 48% 250 60 80°,U 120 TSUGA 2.5.2 1711 3507 3537 3118 30 26 78.577 735 0.91 16 % 47% 192 60 80% 239 TSUGA 2d.5 3289 3314 2909 25 22 76 1601 731 0.91 18% 49% 215 60 80% 227 1350 3104 3114 2735 10 6 74.144 728 0.91 22% 49°,5 252 60 80% 97 1289 TSUGA 2~.3B 3009 3022 2655 13 11 73 685 0.91 19% 53% 194 60 80% 103 1289 TSUGA 2-4.3 2981 2993 2630 12 7 73 727 0.91 24% 55% 249 60 80% 84 1277 2938 2958 2583 20 18 72 726 0.91 16% 43°~ 236 60 80% 204 915 TSUGA 2d.2 2772 2792 2435 20 16 70 724 0.91 19% 51% 210 60 80°k 161 1017 2683 2703 2357 20 21 70 722 0.91 22% 50% 385 60 80°h 388 1087 i d TOTAL 235 211 2413 1609 MMcf Remaining Reserves in interval to be Frac'd MMCF DON'T FRAC perts at 2192-2550' PERFS TO BE FRAUD ARE IN RED XX XX OTHER OPEN PERFS ARE IN BLACK Shut off perts 1987-1997' XX XX BHP is estimated based on last LT SIP= 685 psia at surface or estimated 734 psis at mid pert depth of 3083 BHP= 685 + 0.015894 "TVD TVD Alt BHP= + + 0.015894 " TVD + 4' (TVD-2932) Ed Jones 7/22/2010 Proposal No: Aurora Gas LLC THREE MILE CREEK UNIT #2 API # 50-283-20116-0000 THREE MILE CREEK Field 35-13N-11 W Tyonek County, Alaska July 28, 2010 Well Proposal Prepared for: Ed Jones Addt Bus Phone 907-277-1003 Bus Phone: 713-977-5799 Email: jejones@aurorapower.com Service Point: Kenai Bus Phone: Fax: 1~ 606350568A Prepared by: ANDREW D SWINT Region Engineer Bakersfield, California Bus Phone: 661-328-6112 Email: aswintQbjservices.com Mobile: 661-342-0691 THE BLUE 1NE LLB C~ R ~"" wlalces betlDar wells .~ {907) 776-4084 (907) 659-2329 (907) 776-4087 Service Representatives: Rod Edwards Account Manager Kenai, Alaska Gr4105 Operator Name: Aurora G~C . ~ Well Name: THREE MI CREEK UNIT #2 Job Description: Stage 1 of 5 Date: July 28, 2010 Proposal No: 606350568A JOB AT A GLANCE Surface Treating Pressure (max) 2,510 psi Total Rate (max) 20.00 bpm Estimated Pump Time (HH:MM) 00:43 Frac Fluid 2$,050 gals Lightning 2000 KCt Water 5,900 gals 6% KCI Proppants 45,938 Ib Sand, White, 20/40 6,563 Ib FlexSand MSE, 12/20 mesh Report Pritrietl on: July 29, 2010 3:07 PM Gr4111 Page 1 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Aurora Gas L~ ~ ~ Well Name: THREE MILE EEK UNIT #2 Job Description: Stage 1 of 5 Date: July 28, 2010 Proposal No: 606350568A WELL DATA RESERVOIR DATA MD Depth to Middle Perfioration 4,832 ft TVD Depth to Middle Pertoration 4,429 ft Fracture Gradient 0.50 psi/ft Bottom Hole Fracture Pressure 2,215 psi Bottom Hole Static Temperature 95 ° F PERFORATED INTERVAL DEPTH(ft) _ _ __ _ _ _ _ _ _ _ _ _ _ Shots per Foot Pert Diameter Total Perfs MEASURED TRUE VERTICAL ( (in) 4,771 - 4,781 4,369 - 4,379 6 0.37 60 4,882 - 4,892 I 4,479 - 4,489 6 I 0.37 I 60 Total Number of Pertorations Total Feet Pertorated TUBULAR GEOMETRY Tubing Casing End of Tubing Pump Via 120 20 ft 3 1/2" O.D. (2.992" .I.D) 5 1 /2" O.D. (4.950" .I . D) 4,700 ft Tubing Top Bottom. 9.3 # 0 4,700 15.5 # 0 5,299 Report Printed on: Judy 29, 2010 3:07 PM Page 2 Gr4119 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Aurora Gas L ~ ~ Well Name: THREE MILE~EK UNIT #2 , Job Description: Stage 1 of 5 Date: July 28, 2010 Proposal No: 606350568A FLUID SPECIFICATIONS KCI Water: 6% KCI Components: 500 ppt 0.5 gpt 0.4 ppt Frac Fluid: Lightning 2000 Components: 500 ppt 5 gpt 2 gpt 1.7 gpt 1 gpt 0.8 gpt 0.5 gpt 0.5 gpt 0.4 ppt Proppants 5,900 Gallons Potassium Chloride Flo-Back 30 Xcide-207 Salt Surface Tension Reducer Bacteria Control Product 28,050 Gallons Potassium Chloride GLFC-5D Enzyme G-I BF-8L Clay Master-5C XLW-32 BG3 Flo-Back 30 Xcide-207 Salt Gelling Agent Gel Breaker Buffers/Ph Control Product Clay Stabilization Product Crosslinker Gel Breaker Surface Tension Reducer Bacteria Control Product 52,500 Ib 87.5% Sand, White, 20/40 12.5% FlexSand MSE, 12/20 mesh Fluids are subject to change based on new information or testing. Report Priiried on: July 29, 2070 3:07 PM Page 3 Gr4127 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Aurora Gas . Well Name: THREE MIL~2EEK UNIT #2 • Job Description: Stage 1 of 5 j Date: July 28, 2010 Proposal No: 606350568A FRACTURE TREATMENT SCHEDULE INPUT PARAMETERS TVD Depth {Mid Perforation) 4,429 ft MD Depth (Mid Perforation) 4,832 ft Perforations Number 120 Perforation Diameter 0.370 in Bottom Hole Frac Pressure 2,215 psi Bottom Hole Static Temperature 95 ° F Tubing 3 112" O.D. (2.992" I.D.) 9.3 # Casing 5 1/2" O.D. (4.950" I.D.) 15.5 # CALCULATED RATES, PRESSURES ~ HHP REQUIREMENTS Surface Treating Pressure (psi) Slurry Rate (bpm) Propgant Rate (Ibs/min) Slurry Hydraulic Horsepower 0 0 Maximum Minimum 2,510 764 20.0 20.0 3,908 802 1,231 375 Bottom 4, 700 5,299 Average 1,352 20.0 2,515 663 Report Printed on: July 29, 2010 3:07 PM Page A Gr4141 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Proposal No: 10011206600 Aurora Gas LLC THREE MILE CREEK UNIT #2 API # 50-283-20116-0000 THREE MILE CREEK Field 27-13N-11 W Tyonek County, Alaska July 14, 2009 Well Proposal Prepared for: Prepared by: Ed Jones Kenneth Nix Vice President Engineering & Operations District Technical Supervisor Aurora Gas, LLC Kenai, Alaska Addt Bus Phone 907-277-1003 (Anchorage) Bus Phone: 713-977-5799 (Houston) Email: jejones@aurorapower.com ~ ~ ~~ ~ ~~ I~ ~ ~ ~~~ ~' c~ ~s F' a €> I' c~ t~ [; ~t i €t ;~ ~ • 1' ~> E• t ~t i i Service Point: Service Representatives: Kenai Rod Edwards Bus Phone: (907) 776-4084 Account Manager (907) 659-2329 Kenai, Alaska Fax: (907) 776-4087 Bus Phone: 907-349-6518 Mobile: 907-229-6536 Gr41 QS i Operator Name: Aurora Gas LLC ,/ Well Name: THREE MILE CREEK UNIT #2 Job Description: 2-6.1 Sand & 2-6.3 Sand Combo Date: July 14, 2009 Proposal No: 10011206600 WELL DATA RESERVOIR DATA Formation Type Sandstone Pay Zone Height 30 ft MD Depth to Middle Perforation 4,604 ft TVD Depth to Middle Perforation 4,205 ft Permeability 50.00 and Porosity 15 Fracture Gradient 0.79 psi/ft Bottom Hole Fracture Pressure 3,322 psi Bottom Hole Static Temperature 95 ° F Gross Fracture Height 113 ft Desired Prop Length 100 ft PERFORATED INTERVAL D_ EPTH ft Shots er Foot Perf Diameter Total Perfs MEASURED (TRUE VERTICAL I p I (in) I 4,427 - 4,447 I 4,030 - 4,050 I 6 I 0.37 I 120 4,771 - 4,781 I 4,369 - 4,379 I 6 I 0.37 I 60 Total Number of Perforations 180 Total Feet Perforated 30 ft TUBULAR GEOMETRY ~ Bottom Casing 5 1/2" O.D. (4.950" .I.D) 15.5 # 0 5,299 Tubing 3 1/2" O.D. (2.992" .I.D) 9.2 # 0 4,300 Packer Depth 4,300 ft End of Tubing 4,300 ft Pump Via Tubing Report Printed on: July 17, 200912:27 PM Page 1 Gr4119 STIMULATION o CEMENTING o COMPLETION SERVICES ,SERVICE TOOLS a COILED TUBING ,PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES a PIPELINE SERVICES a WELL CONTROL o CHEMICAL SERVICES Operator Name: Aurora Gas LLC • ~ ~ Well Name: THREE MILE CREEK UNIT #2 Job Description: 2-6.1 Sand & 2-6.3 Sand Combo Date: July 14, 2009 Proposal No: 10011206600 FLUID SPECIFICATIONS Diagnostic: 6% KCL Components: 1,000 Gallons 500 ppt Potassium Chloride Accelerator Frac Fluid: Lightning 2000 Components: Flush: Linear Gel 1,698 Gallons Components: 5 gpt GLFC-1 D Gelling Agent 1 gpt Enzyme G-I Gel Breaker 0.5 gpt BC-3 Gel Breaker 0.5 gpt Clay Master-5C Clay Stabilization Product 0.5 gpt Flo-Back 30 Surface Tension Reducer 0.4 ppt Xcide-207 Bacteria Control Product Proppants 500 Ib 100% Sand, White, 20/40 49,500 Ib 87.5% Sand, White, 20/40 12.5% FlexSand MSE, 12/20 mesh 19,000 Gallons 5 gpt GLFC-5D Gelling Agent 1.7 gpt BF-8L Buffers/Ph Control Product 1 gpt Enzyme G-I Gel Breaker 0.8 gpt XLW-32 Crosslinker 0.5 gpt BC-3 Gel Breaker 0.5 gpt Clay Master-5C Clay Stabilization Product 0.5 gpt Flo-Back 30 Surface Tension Reducer 0.4 ppt Xcide-207 Bacteria Control Product Report Panted on: July 17, 2009 12:27 PM Gr4727 Page 2 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING ,PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES a WELL CONTROL, CHEMICAL SERVICES Operator Name: Aurora Gas LLC Well Name: THREE MILE CREEK UNIT #2 Job Description: 2-6.1 Sand & 2-6.3 Sand Combo Date: July 14, 2009 Proposal No: 10011206600 FRACTURE TREATMENT SCHEDULE INPUT PARAMETERS TVD Depth (Mid Perforation) 4,205 ft MD Depth (Mid Perforation) 4,604 ft Perforations Number 180 Perforation Diameter 0.370 in Bottom Hole Frac Pressure 3,322 psi Bottom Hole Static Temperature 95 ° F Two Bottom Casing 5 1/2" O.D. (4.950" I.D.) 15.5 # 0 5,299 Tubing 3 1/2" O.D. (2.992" LD.) 9.2 # 0 4,300 CALCULATED RATES, PRESSURES 8~ HHP REQUIREMENTS Surface Treating Pressure (psi) Slurry Rate (bpm) Proppant Rate (Ibs/min). Slurry Hydraulic Horsepower Maximum Minimum Avera e 3,531 2,018 2,217 20.0 20.0 20.0 3,106 411 2,914 1,731 989 1,087 PROCEDURE Fluid Proppant -- Type ~ V e u ' Type Stage Cum stage (g j al 1PP ) a (Ibs) (Ibs) 1 I 6% KCL 1000 I Dfit 2 ( Lightning 2000 1000 ~ Mini Frac 3 ( Lightning 2000 1000 4 (Lightning 2000 1000 ~ 0.50( 100%Sand, White, 20/40 500) 500 5 ( Lightning 2000 5000 ~ Pad 500 6 ( Lightning 2000 11000 ( 4.50 87.5%Sand, White, 20/40 43313 12.5%FlexSand MSE, 12/20 6188 50000 7 Linear Gel 1698 ~ Flush ( 50000 Total 21698 50000 R°port Panted on: July 17, 200912:27 PM Page 3 Gr4141 STIMULATION , CEMENTING a COMPLETION SERVICES a SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES ,PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Well Name: Job Description: Date: Aurora Gas LLC THREE MILE CREEK UNIT #2 2-6.1 Sand & 2-6.3 Sand Combo July 14, 2009 ~ ~a Proposal No: 10011206600 FRACTURE TREATMENT SCHEDULE TREATMENT SCHEDULE Surface Rates Volume --_ _. - __ Stage Treating Slurry Clean Prop. Slur Fluid_ Pump sta a g Pressure b m Fluid Rate (p ~ Stage Cum. Stage Cum. Time (psi) (bpm) (Ib/min) bbls bbls bbls bbls hh:mmas 1 ~ 3531 ~ 20.0 20.0 ~ 23.8 23.8 23.8 23.8 ~ 00:01:11 2 ~ 2424 ~ 20.0 20.0 ~ 23.8 47.6 23.8 47.6 ~ 00:01.:11 3 ~ 2424 ~ 20.0 20.0 ~ 23.8 71.4 23.8 71.4 ~ 00:01:11 4 ~ 2375 ~ 20.0 19.6 410.7 ~ 24.3 95.8 23.8 95.2 ~ 00:01:13 5 ~ 2424 ~ 20.0 20.0 ~ 119.0 214.8 119.0 214.3 ~ 00:05:57 6 ~ 2017 ~ 20.0 16.4 3105.2 ~ 318.8 533.6 261.9 476.2 ~ 00:15:56 7 ~ 2067 ~ 20.0 20.0 ~ 40.4 574.1 40.4 516.6 00:02:01 Total Pump Time: 00:28:42 The following economic paradigm approach attempts to help Aurora Gas economically stimulate the Three Mile Creek Unit #2. BJ welcomes further discussion and alternate methods to stimulating this well. For optimal economic feasibility a target of 100,000# was chosen for the overall project. This would allow two separate pump fracture stages. To maximize the benefit of these two stages, the stresses were evaluated from the Lone Creek #2 well. Two stringers per stage were chosen based on the compatibility of the stresses associated and their proximity to each other. The stresses had to be close enough to produce similar frac lengths in each interval and had to be right on top of each other for zonal. isolation. Under these conditions, one pump stage should produce 4 frac wings. In essence this would produce four fracs packaged into two pump stages. As Mother Nature would have it, the 2-4.3 & 2-5.2 sands are close in stress as well as the 2-6.1 & 2-6.3 sands. The following graphical representations illustrate their similar fracture geometry. Due to the large interval, a sand plug is not recommended for Isolation between the two pump stages. The best chance for success would be a mechanical plug. Sand Schedule is a 1# - 8# Ramo Rspori Printed on: July 17, 2009 1227 PM Page 4 Gr4141 STIMULATION o CEMENTING o COMPLETION SERVICES a SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES ,PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES ~_ (~ ~1 Q ~LL L~ Concentration/Area (EOJ) aaoo aaoo soon o as au Stress (psi) Length (ft) Vertical Width Profile (Closure) 40201......... soao 4110 ______ 42so 4320 4350 aalo ..... 4440 BHTP & Surface Pressure -Surface Pressure (psi) -~~ ~' ~ ~ ~~~~ ~~~ _.' } s2oo 4600 4400 ~1 Uj 4000 y~.i 3600 ~ 3200 2800 2400 2000 ....~~.,..,, , ;-~. ~,~~r~~ t t~~a~~ ==x~1 f 4 ..-~ ~--~ CCS i-i ?' U ~--~ I it i '> Surface & Net Pressures -Surface Pressure (psi) ~~°~~ ~ :~~:~ ~~~~>~~°;~ Length ~~7 t~~t F'r~ssure {psi) - r ~_ ,~, ~~< ^ 0 20 4500 ieoo.ooc 40 60 .~ '1 gQ aioo ,"Q~3,33:; 90 ~, 95 ~ ~ 3700 ^ 99 'T~.6t3,=36 i' 3300 ~ 00.000 2900 33.333 U ~ 2soo ~s 667 2100 4 N U 0 V J r` C~ 3 200.OOC 0 5 10 15 20 25 30 35 40 45 :' MFrac-Three Mile Creek #2 Lower BHTP Burst -6/30/2009 W1Qin ~ln.~ Time (min) Stress • • Operator Name: Aurora Gas LLC ! Well Name: THREE MILE CREEK UNIT #2 Job Description: 2-4.30 Sand & 2-5.2 Sand Combo Date: July 14, 2009 Proposal No: 10011206600 WELL DATA RESERVOIR DATA Formation Type Sandstone Pay Zone Height 30 ft MD Depth to Middle Perforation 3,321 ft TVD Depth to Middle Perforation 2,948 ft Permeability 24.00 and Porosity 21 Fracture Gradient 0.79 psi/ft Bottom Hole Fracture Pressure 2,329 psi Bottom Hole Static Temperature 83 ° F Gross Fracture Height 113 ft Desired Prop Length 100 ft PERFORATED INTERVAL DEPTH(ft) _ Shots per Foot Perf Diameter Total Perfs MEASURED ~ TRUE VERTICAL ( (in) 3,104 - 3,114 I 2,741 - 2,750 I 6 f 0.37 I 60 3,507 - 3,537 I 3,126 - 3,155 I 6 I 0.37 I 180 Total Number of Perforations 240 Total Feet Perforated 40 ft TUBULAR GEOMETRY T~ Bottom Casing 5 1/2" O.D.. (4.950" .I.D) 15.5 # 0 5,299 Tubing 3 1/2" O.D. (2.992" .I.D) 9.2 # 0 2,600 Packer Depth 2,600 ft End of Tubing 2,600 ft .Pump Via Tubing Report Printed on: July 17, 2009 12:27 PM Page O Gr4119 STIMULATION , CEMENTING o COMPLETION SERVICES o SERVICE TOOLS a COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES a PIPELINE SERVICES o WELL CONTROL a CHEMICAL SERVICES Operator Name: Aurora Gas LLC • ~ ;~ Well Name: THREE MILE CREEK UNIT #2 Job Description. 2-4.30 Sand & 2-5.2 Sand Combo Date: July 14, 2009 Proposal No: 1001.1206600 FLUID SPECIFICATIONS Diagnostic: 6% KCL Components: 1,000 Gallons 500 ppt Potassium Chloride Accelerator Frac Fluid: Lightning 2000 Components: Flush: Linear Gel 1,698 Gallons Components: 5 gpt GLFC-1 D Gelling Agent 1 gpt Enzyme G-I Gel Breaker 0.5 gpt BC-3 Gel Breaker 0.5 gpt Clay Master-5C Clay Stabilization Product 0.5 gpt Flo-Back 30 Surface Tension Reducer 0.4 ppt Xcide-207 Bacteria Control Product Proppants 500 Ib 100% Sand, White, 20/40 49,500 Ib 87.5% Sand, White, 20/40 12.5% FlexSand MSE, 20/40 mesh 19,000 Gallons 5 gpt GLFC-5D Gelling Agent 1.7 gpt BF-8L Buffers/Ph Control Product 1 gpt Enzyme G-I Gel Breaker 0.8 gpt XLW-32 Crosslinker 0.5 gpt BC-3 Gel Breaker 0.5 gpt Clay Master-5C Clay Stabilization Product 0.5 gpt Flo-Back 30 Surface Tension Reducer 0.4 ppt Xcide-207 Bacteria Control Product Report Printed on: July 17, 2009 12:27 Ph1 Gr4127 Page 9 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES a WELL CONTROL, CHEMICAL SERVICES Operator Name: Aurora Gas LLC • Well Name: THREE MILE CREEK UNIT #2 Job Description: 2-4.30 Sand & 2-5.2 Sand Combo Date: .July 14, 2009 Proposal No: 10011206600 FRACTURE TREATMENT SCHEDULE INPUT PARAMETERS TVD Depth (Mid Perforation) 2,948 ft MD Depth (Mid Perforation) 3,321 ft Perforations Number 240 Perforation Diameter 0.370 in Bottom Hole Frac Pressure 2,329 psi Bottom Hole Static Temperature 83 ° F Bottom Casing 5 1/2" O.D. (4.950" I.D.) 15.5 # 0 5,299 Tubing 3 1/2" O.D. (2.992" LD.) 9.2 # 0 2,600 CALCULATED RATES, PRESSURES 8~ HHP REQUIREMENTS Surface Treating Pressure (psi) Slurry Rate (bpm) Proppant Rate (Ibs/min) Slurry Hydraulic Horsepower Maximum Minimum Avera e 2,301 1,335 1,475 20.0 20.0 20.0 3,106 411 2,914 1,128 -655 723 PROCEDURE Fluid _Proppant _ ~ Type '~ Volume Conc~ _ Type Cum Stage stage (gal) (ppa) (Ibs) (Ibs) 1 6% KCL 1000 I Dfit I FlexSand MSE, 12/20 mesh 2 Lightning 2000 10001 Mini Frac 3 ( Lightning 2000 10001 4 ( Lightning 2000 10001 0.501 100%Sand, White, 20/40 5001 500 5 Lightning 2000 50001 Pad 500 6 Lightning 2000 11000 4.50 87.5%Sand, White, 20/40 43313 12.5%FlexSand MSE, 20/40 6188 50000 7 (Linear Gel 1698 Flush 50000 Total 21698 50000 Report Printed on: July 17, 2009 12:27 PM Page. 1 Q Gr4141 STIMULATION o CEMENTING o COMPLETION SERVICES ,SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Aurora Gas LLC • Well Name: THREE MILE CREEK UNIT #2 Job Description: 2-4.30 Sand & 2-5.2 Sand Combo Date: July 14, 2009 r Proposal No: 10011206600 FRACTURE TREATMENT SCHEDULE TREATMENT SCHEDULE Surface Rates Volume Stage g I p• l rrY ~ Fluid _ Pump Pressure Slur m Flu d Rate u Cum. Stage Cum. Stage Time sta a 9 (psi) (bp (bpm) (Ib/min) bbls bbls bbls bbls hh:mmas 1 ~ 2300 ~ 20.0 20.0 ~ 23.8 23.8 23.8 23.8 ~ 00:01:11 2 ~ 1625 ~ 20.0 20.0 ~ 23.8 47.6 23.8 47.6 ~ 00:01:11 3 ~ 1625 ~ 20.0 20.0 ~ 23.8 71.4 23.8 71..4 ~ 00:01:11 4 ~ 1589 ~ 20.0 19.6 410.7 ~ 24.3 95.8 23.8 95.2 ~ 00:01:13 5 ~ 1625 ~ 20.0 20.0 ~ 119.0 214.8 119.0 214.3 ~ 00:05:57 6 ~ 1335 ~ 20.0 16.4 3105.2 ~ 318.8 533.6 261.9 476.2 ~ 00:15:56 7 ~ 1402 ~ 20.0 20.0 ~ 40.4 574.1 40.4 516.6 ~ 00:02:01 Total Pump Time: 00:28:42 The following economic paradigm approach attempts to help Aurora Gas economically stimulate the Three Mile Creek Unit #2. BJ welcomes further discussion and alternate methods to stimulating this well. For optimal economic feasibility a target of 100,000# was chosen for the overall project. This would allow two separate pump fracture stages. To maximize the benefit of these two stages, the stresses were evaluated from the Lone Creek #2 well. Two stringers per stage were chosen based on the compatibility of the stresses associated and their proximity to each other. The stresses had to be close enough to produce similar frac lengths in each interval and had to be right on top of each other for zonal isolation. Under these conditions, one pump stage should produce 4 frac wings. In essence this would produce four fracs packaged into two pump stages. As Mother Nature would have it, the 2-4.3 & 2-5.2 sands are close in stress as well as the 2-6.1 & 2-6.3 sands. The following graphical representations illustrate their similar fracture geometry. Due to the large interval, a sand plug is not recommended for Isolation between the two pump stages. The best chance for success would be a mechanical plug. Sand Schedule is a 1# - 8# Ramo Report Printed on: July 17, 20091227 PM Page 11 Gr4141 STIMULATION o CEMENTING a COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES a PIPELINE SERVICES a WELL CONTROL o CHEMICAL SERVICES Vertical Width Profile (Closure) ~~nn -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 Width (in.) Stress Concentration/Area (EOJI ~_ H Surface & Net Pressures -Surface Pressure (psi) --------i $~ ~ ~~~~ '.~=,:~~s~ _-___~? met I'resati~re psi _ , , : ,. E~~, ~E'; Length ~ (}.: ) ^ 0 20 4500 ~~aa.aaa 40 60 •'~ 80 V] 4100 3.333 90 ~ 95 ^ 99 ~ ~ ~oo ~F- . QI 3300 ~,Ol'}.Ol'}O z 2900 33.333 U $"'~ 2500 .66.66, 2100 ~e _._ O . ,~ ~r.. ~ t~ r--~ N U 1 U S 2044?00 0 5 10 15 20 25 30 35 40 :? _ ,v~,,~ ~...., ... ~ ........ ...... o o.z - 0.4 0.6 1 1.2 1.4 ', ', 1.6 __ •,i 1.8 z ~ zi, 2.2 2.4 ', ' 2.6 c,. 1: k Y Time (min) BHTP & Surface Pressure -Surface Pressure si °----~~' t~ ~~ f ~p ) 5200 ~BNTP (pSl} ~~ PSt ~ ?... •f~~Yi 4800 'i 4400 i I . ,~.i E ~ 4000 ____ ____. _..._ ',. ._...._3 ........._ ~,.__.._... ........... r ~ 3600 ___. ____. ~ '' ~ ____. ____. ___ ~ ' F ~ 3200 _...._..__. ___. ____. _ ~ _ Q-1 r,,. ~ .,, .- -- 2800 _.......... ~ ____ __ _.. ____. ___.. .... 2400 ........ ........y,. '' _. _..__.~ ......._ ............ ~.~ : ~ ~ '. 2000 ~' 2000 3000 4000 0 30 60 90 120 CtYPCC (Heil Length (ft) MFrac -Three Mile Creek #2 Lower BHTP Burst - 6/30/2009 rid ~ 4 Time (min) U O 2` U "Q ~,,~,// W ',. Operator: Aurora Gas LLC Well Name: THREE MILE CREEK UNIT #2 Date: July 14, 2009 s r 1 Proposal No: 10011206600 PRODUCT DESCRIPTIONS BC-3 BC-3 is a clear, colorless liquid that is designed to assist the degradation of alkaline pH fracturing fluids. Usage can be from 70 deg F to 300 deg F (21 deg C-149 deg C) when proper testing is performed. It can be used with enzyme breakers to lower pH of the system and allow the enzymes to work more effectively without damaging the enzymes. BF-8L A liquid pH control agent used to adjust fracturing gels into the pH range of 8.5 to 10.5. This product was designed to retain its buffering capacity at high temperatures. Clay Master-5C A concentrated low molecular weight polyamine used in water, brine or acids to protect the formation against damage due to clay swelling, sloughing and migration. Enzyme G-I A patented, polymer specific enzyme breaker custom formulated to degrade polymer into non-damaging components. Flo-Back 30 Recovery of aqueous fracturing fluids can pose special problems, particularly in tight reservoirs with low bottomhole pressures. Flo-Back 30, a non-ionic liquid surfactant, relieves those problems by substantially increasing the fluid recovery rate for all aqueous fracturing fluids, including foamed, gelled and crosslinked systems, as well as matrix acidizing fluids. GLFC-1 D A guar gum gelling agent slurried in an environmenatlly friendly carrier. Used to prepare hydraulic fracturing fluid GLFC-5D A high yield guar gum gelling agent slurried in an environmenatlly friendly carrier. Used to prepare hydraulic fracturing fluid systems. Potassium Chloride A granular salt used to reduce clay swelling caused by water-base cementing fluids. Sand, White, 20/40 An excellent quality, well rounded quartz sand, commonly known as "Ottawa". Color variation, which has been construed as less than desirable, is common for these sands and has no apparent impact on their strength. It is used in low to moderate closure pressure situations. XLW-32 A liquid Borate crosslinker (Boric Acid) used in gel systems. Xcide-207 A non-ionic isothiasolin bacteriacide in a convenient, solid granular form. It provides broad spectrum control of slime forming and sulfate-reducing bacteria in oilfield waters. Report Printed on: July 17, 2009 12:27 PM Page 17 Gr4163 STIMULATION a CEMENTING a COMPLETION SERVICES a SERVICE TOOLS ,COILED TUBING PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o W ELL CONTROL .CHEMICAL SERVICES • LJ ~ __ _-. _~ -, , ~ ~~ ~' _ ENERGY ALLIANCE ° -_ Advanced Cornplet~on Desrgn - ~ ~, _ ~_ _.._._........~..~.w _.___ __._..___.__ .__. Sdmafation Yrslan Evaluated Far: UPI: AURORA050323_R_ NS_3950 AURORA GAS Completed: 5!6/2005 Compalry AURORA GAS, LLC. (/r Well THREE MILECREIXUNIT#1 (HI-RES)-STAGEI(3514-3709Ft) Fleld THREE MILECREIX County KENAI State ALASKA Country USA Location 1504' FNL & 148' FWL Section 35 Township 13N Range 11W .API Num 9901 Permanent Datum MSL Elevation 0.0 K.B. 332.9 Log Measured From RKB , 332.9 Above Perm Datum D.F. 331.9 Drilling Mess From RKB G.L. 315.2 Run 1 Run 2 Run 3 Dab DepN-Driller 24/0 - Depth-Logger 2440 BDn log Interval 29J0 ToD LOglnterval 110 Cuing-Driller - Cesing-LOgger BRaim type Rind In Hob mFSH MUD Deu. Msc. 12b/- pN/RUld lass -/- saumeotsmnple Rma Meas. temp -@- Rmt~Mees.Temp -a- RmeaMees.temp -a- Seuras:Rml/Rmc _/_ Rm®BNi -®- Mos. Rec. Temp 96 »»a»aa ..NOTES»»»»»*`»» »»»»..»».»..»r»»»»»»»»» The scope of the project was to determine the optimal stimulation treatment scenario for the Beluga interval at 3,514-3,708 FT in this Nell. Pump-in antl protlucti on data for the Beluga interval at 4,505-4,684 FT was provided and utilized to calibrate the Nu6tim process. Scenario 2 below represents a typ ical BJ-recommendetl job in the area. Scenarios 3-19 simulate jobs of varying sizes with the same fluids, proppants, and at the same pump races. Scenarios 28-21 si mulate the optimal sized job at higher antl lower pump rates, respectively. Scenarios 22-24 simulate the optimal size job and pump rate with varying entli ng proppant concentrations. Scenario 25 simulates the optimal size job, pump rate, and ending proppant concentration, with a different mesh size of proppant. Scenario 26 simula tes the optimal size job, pump rate, entli ng proppant concentration, and mesh size of proppant using a resin-coated proppant to tail in the last 50,000 lbs of the job. Scenario 27 simulates the optimal size job, pump rate, ending proppant concentration, antl mesh size of proppant using resin-coated proppant for the entire job. Scena rios 26-30 simulate varied sizes of N2 foam fracs using the optimal proppant and ending proppant concentrations. Scenario 1 is the unsti mulcted case. Scenario 20 was determined to be the optimal scenario, as the predicted 4 year NPV is the highest. A tubing movement analysis shoultl be performed prior to execution of any stimulation treatment. The details of this scenario are outlined in the following report. All interpretations are opinions based on inferences from electrical or other measurements, and we cannot and do not guarantee the accuracy or correctness of any interpretation, and we shall not, except in the case of gross negligence on our part, be liable or responsible for any loss, costs, damages or expenses incurred or ustained by anyone resulting from any interpretations made by any officers, agents, or employees of NuTech Energy Alliance. These interpre tations are also subject to Clause 4 of our General Terms and Conditions as set out in our current Price Schedule. PROD. ID: AURORAOSB323 R NS 3950 i • THREE MILE CREEK UNIT #1(HI-RES) -STAGE 1(3514.3709 FT 10 May 2005 ~ 17:23 DEPTH(FT) Interval: 3340.00 to 3760.00 Depth Scale RatiD:1/480 OAPI150 6~-.~~^0 I-J 160 b 1 ~0 0 DEC 1 IS bB -i1 10.1 ~~~NID~~ IOOOI ~1M0000 4 O IO IBI 1300 pY 2500 O (kcal/mo 10 CAU IB 0 MB 61~F0 0~ 0 1 NUMAYR 0 3MDEC OI 1 O.B~.µ,~,,,,,,DEC ,,, ,,, ,, 0 O.l ~ NI~M 1000 0.610TSCON 1 4 NSFRWB 0 0 NSWFA 320 2000 p~8000 OR%NOKD911 MVL 50 0 ...____8 PFRF 0 0 CIWRe 6 DBE 0 XUPERM 1000 0 ~ NSC 0.5 0 (~~~ 1 0 0 0 M DIB 0 1 0 NSFfFA S20 O i0U6~NN~ 0.!(8711/160.3 . OC MB 6 DB 0 2000 116000 0 - - 0 DDB OL 1 0 - _NSFRIMe - - - !8 90 DEOF 190 . OF~6 1 DB 0 ~ 9 (NSFRWD 1 0 0 - _ _ NSFPEB - _ - 120 KO_M 0 8 ~ ~ - _ _ OLO BYW BW NSFRWA 0 0 0 CIAY _ NSFFEB 320 _ (NSPAWC 1 OL PIKE BVY/ NSFMYB 0 0 CIAY OIOSMAIL IB _ lN6isEC1 fF F1A0 0 BW 0 NBFRWC 0 0 SMALL onlnwM 320 _ _ = (~~ 1 W_MO E_OL NEFRWD 0 0 MEDIU 320 (NSFRWD 1 C M VCOAL 0 0 16 _ (NSPPED 1 KF_M 0 320 (NSFFFD 1 KO MO 0 320 _ 0 NSFlIWA NSFAWA NSFPFA p NSFRWB NSFRWB N8FPE8 p NSFAWC NSFRWC NSFPB - - 0 NSFRWD 3900 ~ .. '~ ~i : 3 ,• "~= h yC T 7 3500 n ++ gg _ Stage 1 TreatShent Recommendation: Scenario # 20 Aurora Gee, LLC Three Mlle Croak UnH ttl Mas WHIP: 8,000 psi (3,51/ - 3, ]OB FTJ BNupa PUMP SCHEDULE BHST: 106.2 deproee F Kenai County, Alaska; Three Mih Creak RNd roc Gredianb 0.851 paps Park: 3,690-9,545 FT (59 Hde J; 9,558- 9,588FT (95 Holes); 9, m2 - 3,6]2 FT (36 Holes); 9,699 -9,709 FT (/0 Hdea) Productlon beeline • Sdnario 20 SI a .~~~~..~i r~. ~~ ~ 10.0 8 T e Clan Vol GALS) Fluid Typs Blender Conc (PPG) PoppaM Type Slurry Rrte (BPM) Proppant LBS 1 Load Hole. Obbin Break 1,50D Treated Wakr 10 2 DFIT 1,IN10 Treatetl Water 10 3 SI (30 min) 0 d PAD m.00D 2016 Bomb 50 5 PROP SLUG 2.500 20168ma1e 2 Otbtrd- 20/m 50 5.000 6 PAD 10,000 2016 Borate 50 T SLURRY 25.000 2016 BmaM 2 Otkwa- 20/40 50 50,000 8 SLURRY 33,OOD 2016 Borate 4 Otkwa~ 20/m 50 132,OOD 9 SLURRY 16,500 20 W Borate 8 OBana- 20/40 50 90.000 10 FLUSH 1.335 Treetetl Water 50 Treebnanf Todla: 131,935 gels 296,090.__ 20 Tubular Data: Cag: T'28q N-80 hom O-8,113 FT Tbp: 3.5"9.38 hom 0-3,392 FT Liner. WA TrortmeM Requlremenb: FIU10 Requiremenb: 1.0 1. PAD Buid required M haw greater Man 1200 ro initial Namciry antl greater 1. Pressure teat pampa antl line b 9,000 psi. Men 500 cp viacosily (401/sec) afbr B] mina at 106.2 degrees 2. All fluids to be mixed xy 601 Ibsadgal (e%) crwblline KCI, 2 gelMlgal 2. Each aMge Rub b requiretl b haw et boat 500 cp viscosity a8er Ma relaktl 0.0 eurkcfanL aM mntain biodde. lob Bme remainiig. 0 386 T30 1095 1480 1826 3. Breaker loadings b be dek!mined poor b pumpingjob hom lab ka8ng, end Tima (Days) to be pre~4tled b mmpeny represenbtiw. 3.8 dean hoc tanks required on lo®5on wiM 455 bbls of 8%KCI in each ~Rak (MMSCFD) SCUM Production (MMCF) 4. Prappant requiretl: 288,000 Ibs.Odawa-20/40 ru Co. to provMe enough HP to pump 55 BPN ~ 8,000 psi. Job Display TreebneM Totals s.999 4,500 4,000 3.500 3.000 ~ 2.500 a 2000 1,500 1.000 0 Scenario Summary: EE I „/.t [ ? k4 1 2 0.00 12384 8000 84.22 SO.W $164.410.10 0.00 23A6 0.00 22.3] 000 54.011 0.00 64.06 0.00 T1.52 0.00 ]8.43 0 3.513 0 3,70] 0 3,514 0 3.]0] 0.000 1p08 0.00 125.]1 WA 839 N/A 35,235 N/A 80,009 Nona 2016 BP rota 0 m WA No N/A 20/m WhiN 0.000 0299 'WA fi 3 ]3.55 83.10 5121,898.65 39.88 19.92 43.54 43.38 83A2 63.32 3,498 3,]OB 3,516 3,]04 0.3]3 87.29 286 11,285 15,800 2016 BOMS m No ZD/m Whlb 0.844 8 4 108.8] 82.18 8133,448.82 83.3] 51.92 54.81 54.59 11].88 106.51 3,6]3 3.]05 3,484 3,]05 0483 121.88 622 1],]35 31,200 2016 Boma m No 20/m YAllts 1.188 6 5 12].11 8430 $145,080.3] ]3.88 82.80 59.38 59.34 13335 121.94 3,482 3,]05 3.4]4 3,]05 0.538 13908 5]8 24,185 m,900 2016 8oreb m No 20/m WNNS 1.318 8 8 142.33 84.85 $156.83034 82.]4 ]090 85.59 85.52 148.33 138.42 3,454 3,]05 3,m5 3.]05 0.5]0 154.80 729 30,835 82,m0 2016 BOreb m No 20/m W51k 1.443 6 ] 184.26 85.93 $188,113.]5 101.]3 89.18 87.22 8].23 168.95 158.m 3,m5 3,]14 3,44] 3,]14 0.554 1]].85 883 3],085 ]8,000 2016 Borate m No 20/40 W51b 1.394 8 8 18301 85.59 $179,]83.]2 108.4] 94.98 89.14 x.12 1]].81 184.10 3,428 3,]05 3,441 3,705 0823 188.23 1,03] 43,635 83,800 2016 BOrota m No 20/m White 1.818 6 9 1]9.18 85.59 $18],50].74 108.58 92.08 25.]6 31.08 132.34 123.18 3,430 3,]18 3,444 3,]18 0.]8] 20128 1,139 4],835 104,000 2016 Borate m No 20Im Whib 2.080 8 10 205.43 88.18 $199,139.50 119.12 105.42 74.77 ]4.]5 193.89 180.1] 3,41] 3,]05 3.431 3,)05 0844 219.]8 1,293 54,285 119,600 2016 Borate m No 20/m WKiN 1.690 8 11 215.02 88.45 5210.689.46 125.05 111.24 ]8.10 ]8.08 201.15 18].32 3,411 3,]05 3,425 3.]06 0.848 230.99 fpm fi0,)35 136,200 2016 Borate m No 20/m WM1lta 1.898 8 12 22456 86.82 5222,2]2.8] 128.81 116.31 81.18 81.06 210.09 19].3] 3,m] 3.]05 3,420 3,]05 0.894 239.06 1,600 8],185 1mJ{00 2016 BOrrte m No 20/m WhNe 1.868 8 13 23583 8].13 5233.82284 13]20 123.39 88.04 8800 223.24 209.39 3.399 3,]05 3,113 3,]05 O.B82 25150 1,]53 ]3,616 188,400 2016 Borah m No 20Im Whke 1.838 6 14 223.0] 88.]0 8245.46469 121.38 111.]0 3195 31.95 153.31 14385 3p16 3,723 3,425 3,]23 1.Om 238.0] 1.90] 80.086 182,000 2016 Borate m No 20/m Whib 2.830 6 ._ _____ ____ _________ _.___ .___.. ... _-. ... .,. ....ea .,.,... .....,. ~...~ ~.... ~~,.~ ,. -..~ a:a ,a srm msu onsnm 2nm B,,.at. m No 20/m Whlb 1.913 8 18 298.53 88.59 $329514.59 151.]3 135.81 100.58 100.5] 252.31 238.18 3,385 3,]05 3.401 3,705 0.]83 320.0] 2,831 123,085 286.000 2016 Borate m No 20/m WhBa 2.128 8 19 30].90 88.84 E3m,808.58 1]6.18 15823 104.]] 104.]8 280.95 282.98 3,380 3,]05 3,3]8 3,]05 0.]34 328.98 3,18] 133,835 312,000 20MBOrrte m ~!_ 2n•4n yVFHw .w a - 21 281.54 Bep2 $32],92].29 144.80 131.94 102.40 102.30 24].20 234.24 3,391 3,)05 3,406 3,]05 0.]3] 30].]1 2,931 123,085 286,000 2016 Borate 30 No 20/m White 2.209 8 n 28e 4] 88.6n i323.31d 22 18532 18293 101.44 101.44 286.]6 264.38 3.351 3,708 3,3]3 3,]08 0698 308.65 2,883 113,085 28fi,000 2016 Borah m No 20Im Whib 2.0]8 8 25 2]032 88.0] 5332,098.23 153.11 141.T! 41.51 41.50 194.82 183.2] 3,383 3,]30 3,394 3,]30 1.110 288.86 2,931 123,085 288,000 2016 Borrte 50 No 16/30 Whbs 2.938 6 20/m Whits a 20/m 28 29].81 88.84 5355.381.58 182.20 182.&1 100.]8 100.]8 282.98 263.58 3,354 3,]08 3,3]3 3,K19 0.]45 319.83 2,931 123,086 288,m0 2016 Borels m No PRBOm 2.018 8 2] 298.]9 8].]3 $481.998.8] 151.58 140.]5 29.18 28.18 180.]5 168. 3,385 3.]05 3,395 3.]05 1.339 318.88 2.931 123,085 288;000 2016 9onra 50 %N2-2016 23 2]2.20 108.84 $2]4.118.93 38.28 38.28 2].10 2].10 83.38 3,500 3,881 3.500 3,881 1.518 2]2.20 2.4]2 103,802 22], rare foam 40 Na 20/d0 W51b 2.384 8 N2 - 201b 29 288.P 108.15 E290,386.88 41.88 41.88 29]6 29.]5 ]1.82 ]1.82 3,d90 3,881 3,494 3.681 1.80] 288.]] 2.]34 110.822 261,800 orara foam d0 No 20/40 Whib 2.]45 8 30 30454 11028 8305.82].11 38.98 38.98 29.15 29.15 88.13 88.13 3A9] 3.681 3.49] 3.881 1.858 304.56 1,985 125,802 2]5,000 6onle foam d0 No 211/dOYMita 2.]43 6 Analysis Summary: us pan B» I anal tau a»1~n»91 1419% __ 1-°. I m ne 556e tn% tRA»l1M 18]% 1tM 1]38 439 )441.000 2133% I.. ""' ~°^'^ "'°m 4 Year NW 10.00 . .,.. _.,.... ......... 1 .. .._. .,- ... ...._. ,_„ .., ._ ,., ,. ,~ _...... 2.20 9.00 aDt ~ a:: O va: ,z . z01 O 1.98 : O .as m.. .. ~.; O . O :, O O O 8.00 _ ~.. a O..ri O ,. 'O _ .. 1.]8 O ~ v ].00 V ~ ~ O 1.56 f t. t ~ O O O ~ ~ ~ ~ ~ ~ ~ ~~ ; sass, ~ 8.00 ~ O r~ O ~ ` SS E ~ _ _ - = v 1.32 u^ ~ ~ O 4s1e g ~ ' m ~ 5 OD >° ~ ~ ~ 1.10 . ~ oe3 < ~ ~ O 4.00 O ~ tl '~; ~ 088 300 0.66 2.00 0.44 1.00 0 22 9.90 1 T~ ___ _ 2 3 4 5 8 ] 8 9 10 11 12 13 14 15 16 1] 18 10 20 21 22 23 24 26 - 28 2] 28 2B 30 r 9.90 9cwarb p ' ®NPV (MM$)OGas CUM (13GF) 3 Ywr NPV 4 Year R01 4500% ., . .. ._...... ....... .......... ......... .. ........ .......... __ :........... 2.20 '. :, : a 204a.. amsx: : ~ O ~ 0 : 1.88 4000% 3500% ~ ._,:.., .~ i ~.:,. O 0 1.)8 000% `~ J O se . ~ O) 1.54 2500% ~ i 1.32 u 1.10 V a 2000% ~ O O 40 > 0 89 ~ 1500% I 4 . 1 a 0.00 1000% 0.46' 500% III It {t ~ 0.22 0% { : .e. ..~ ~ ~~~. ~ ~ L: .: 0.00 1 3 4 5 B ] 8 9 10 11 12 13 14 15 18 1] 18 19 ZO 21 22 23 24 25 28 2] 28 29 30 Scenario p ®ROI OGae CUM (fiCF) 3 Year ROI 10.0 -..,,......_._ .................._,......___..,.......,.......,.......,......_.,.,.._.....,.,......_......_......_...._........_......_......_....._.......................................,.,.....,.,.,...,............. 2.00 4000% t0 ~ O ~)a ; 9.0 ....... O..tf4.... O ~t)a. ~.]4 _I, ..._ 1.60 ,s O O O.O 3560% >. a 8.0 ~ °: ~ O v: :: ~. d' __. 1.80 ~' - :::., :., :: .: s;m i4r. 3000% ].0 : <i . wm : 1.40 " O O O z5o»% f 8 0 O O ~ ]3 I{ I{ 31 1.20 ,-, ' S.0 ~ ''` `~ `~ r! - N ~ ~ 3 V ! I f ,.00 ~ ~ 2009% M ~ ] o° d.o ° ~ aeB 1500% ' 3.0 ~ 0.80 1000% I 2.0 i ~ 0.I0 ~% ~ 10 010 0.0 pab - ~ ~ 0.00 1 2 3 4 5 B ] 8 8 10 11 12 13 14 15 18 1] 18 1B 10 21 22 23 24 25 28 2] 28 28 30 2 3 4 5 8 ] 8 0 10 if 12 13 1 15 18 1] 18 19 20 21 22 23 24 25 28 2] 28 29 30 9cenarb R Scenado M 61NW (MME) OGas CUM (OCF) ®ROI OGae CUM (BCF) 1 Vear NPV ~ Year ROI ].0 1.40 2500% 8.0 ......., ..w ... ,n to-. :, ..... ttt 0 i io O tto tio 1.20 . O 0 0: O 0' Ol 2000% 6.0 O e Sst 4 ~O O a 1.00 Q > ~ ~ - eo et O ''. 0 1500% 4.0 0 O O .080 m ~ z O rl ~ O O n0 G G .O .O r ? 30 s. n I f O.BO ° 1000% 2 0 1.0 0 0 y~ ~ III 0.40 ~% 0.20 0% 0 0 . 1 2 3 d 5 8 ] 8 9 10 11 12 13 14 15 18 1] 18 19 20 21 22 23 26 25 28 2] 23 29 30 SwnadoM ®NW (MM$) OGas CUM (BCF) . p Treatlnent 31u vs. Created Fracture HaIDM Efi00,000 $/50.000 EOOD.000 5350.000 ,-. 5300.000 p E2w,aoB F 5200,000 E1W,000 E1oB,BOB 559.900 1.400 1.200 1.000 OBOOm U O.60D p 0.400 0.200 B aOB . 2 3 d 5 8 ] 8 B 10 11 12 13 14 15 18 1] 18 iB 20 21 22 23 24 25 28 2] 28 29 30 9carrarb d ®ROI OGas CUM (SCF) Estlmebd Treatlnent Coat w. Treatment Slu to 1 ..''~._ ao _..~ a 'i ~~ '-' s ., to ...... __ a ° ~.. ..... .... ...... zr ~ ~ s ~ ~~ • : ''. 1 remmam Stu tools) Dropped FrecWre Dlmerlslons va. Treatlnant SW 5460.000 5400.000 5350,000 N^E300,000 E 8250.000 f $200.000 $160.000 $100.000 $50.000 EB ~~ 1 ............... • Ddtr ~~ 350 300 250 3 200 ° 1W 100 50 0 Prop LenBN „'.,..o rV~'Prop Heght Decllna Curva Anatyab 5000 '. ___._ _.... :.. .......__ ............... __ ........ ',, ......._ ... .._............ 7 ~'. '. '. r1 "fr y ..._... d 000 { -....... I, L~ 1.000 m 0.800 O.B00 O.4W 0.200 0000 1.600 1.800 1.400 1.200 9 31000 ao.e0o o.eo0 o.aoo o zao Daoo Creabd Free Wre. Largtlt w. Aw. Freclure Widih 9.00 NW Atrelysls _ 800 -._....._ ~ ._... ,„ °° . ~ ~ ~ ~..., .. r ~ ~ ..... 800 _........._ _i_ yy - --- /+f. ~-a.-.. ..: f 500 -' -~- ,.... f 400 n 300 ._.....__ - _ r>.. ...__... ~.n,.~- ( ..,.... 200 ____ _. _.... ___. ' 100 ~ __ .. ........ ____. f 000 _. .._..._ -1.00 0 ) 1085 385 ]30 TlmslDaya 1480 1825 ~S~nano (( '~^~-^S rrob NW 8(N ~ ^^^SOar~iarol NPV S nalw8(N P V N P V S o6f( ) (` (~ ~~ ~ ~ ~ ( S ~ rb • ~ PB NP ~ 2 ~ ~ o ~ P ( ~ -^- w re PV ( S wre o N -+-5 S PV a284'v"vA ~ m~4" { , , ~. i 3,000 C A 2,000 1.000 8,000 5000 ~ ,.~~~ . ~. 4. 4,000 ... E rc 3000 "~ 2.000 .._____._..._------------- 1,000 o+ 0 9.00 8.00 ]W 8.00 5.00 f ~ 4.00 2 3.00 2.00 1.OD 0.00 -1.00 0 30 80 90 120 150 180 210 2/0 2]0 300 330 3~ TI e(O aya) (( ~S o8lNW ll ~S~wneno]iNPV ( ~S MB(N~ ~S~w ri 9lNPV ---~S~wnano lO NP S rw 1 N -,, -A-Swnano 1111111 NP ;~~Sw o 13 NP e :. S na iJJ N --Swnano i6 NP -5 rw i6 N ~S a ZB ^^^-Swwrb l] N S ~ w 27 N ^---SCe rio 18 NP N ~ w SCenerlo l9 NP ~Smnerb 20 NP ~ wwn NP -~- w riar ro P -- i-S nano 28 ~-SOeriario 28 NP -e-Sw r~ano 30 NP .............. w .~~~W 348(6 3. ]30 mm~lDeval 1,033395 /( 1,480 ( 1,825 Sw na 8!(~Rale) ^!^Smnario lS(~Ra e) -::: -S~w rlot~~(Riate) SCeao16 (~Ra ~) aM 1~0isle~ 'S 'o i8 Rate -«-Swwrw l] Rafe S 18 ~-Swnano l9 Rate w 20 Rate S o21 Rate -v--Smario 22 Rale S rb 23 Rate ano 24 Rate S narb 25 Rate ---Swnano 28 Rate -SOenarw 2] Rate ~-S do 28 to - 2B Rem Sw 30 R to Decline Curw Analysk-Flat Year aw t,000 1,500 2,000 2,500 3,000 3,500 4,000 TreatmaM 3lze (bbls) 30 81 81 122 152 183 213 243 2]4 304 336 385 ( 1 (Ra ) nma(Dayq (( ((Ra Q(.( S rio 8 (Rate) «^^^^^•Swnano ] fRa~)~ .. SS~w o 13RRa ~) ..~..~ Smnarb 14(Ra ~ 7 - Su~iarb 15 (R~ab~ Sw o 18 Rate Swnano 1] re Sw '018 Rate Scenario 18 Rate -~~ Soerano 20 Rate -'S o 11 fS{(Rafe -irSwneno 121{((NRast 1{I{{ 17) S(( )1) SS( -a-SCenano 2l Rate -ce-Swre 21 Rete -w SCanario 23 Rate ~ o~~Swren 24 Rat -r-Swr~an 26 Rata -~~Swnano 28 Rate -SOanarb 2] Rate -FS 28 Rate - Sw rb 29 Rate S rl 30 Rate NVV Anetysls-Flat Year 5u 100 150 200 250 300 350 Greeted Fracture LengM (Ft) .~~ ~ ~~~, ,~ i , ~ ~, ... ~ ~xi i ~ _. ,: -~- .. ~ • _ f _. ~ I~.. ~ ~ - 1 ~ ~r tine .. .. eA Cry -- - -~ I • i.~;: 264 I4 I , ~' - { 'i ra'f96 C ~~ ,. i - I _- :35.8 9.1 a3 10 I/ 0.12 OJ ~ IIII + . r.~, --. ,~:. /:iH 'an ,;ii Fin. otib OW;, .., ~• .•.-. j i. t+ -• _., .~- _ _ ---_ _.._ __ _.- E ~. ~:.--~ n ~ ;. i :. •i ~ a,56`03 ii ~ 067 9.036 1030 __-~ I.... _ ., ~ . ~.. ~-. _ ~ C .;C i~i~ .~ --. ~ - ,- It LOGS -~~ ~ _. i. .... __ _...,. ~... ~ - a -._ . ~.~ .. ... .. .. 0.001 1 ~: - . .- 4 -.. i. 02190 ..A~ ' • ' =- - ~_ i.. 11 i i. 1.. -. i ~. ~-- ~ i. [.1359 (T '- I -- I ~ ..., ._ -i _.' I.., •~.. _ ~ :• 2O6 9ti 11aSJ O.GS - r-~. ~ ].1!YJb ( ~ ~ ~~ - f ..~~_. i3_: m ,z zz o~5 , -. .. --~ ,- ~ ~.~- _., ~ ~6a --Ia ~. n , ~, .. ~~, III ~. ,,. ~. ~, : i ~,~ ~ ~ ~ ~ ~. OLm _ ~ .,. _ I _- _~_ ~_ - _ Gan Pace Grosa) 5 SRAec Pace Eacelatlon Rata Mnual D'wwunt Flab 15 Conti O retin Conti 5,OOD.00 f/monN Cant Eecala5on Rafe 10 %/ Inkal InveaMent 0 $ semulamn coat seabeie S Pare Presnnre gmaiam aaria5l I»iin EHD 0.43 inch Gas graNy 0.5 rlPl Formation WogartY aenump5one rmetl in Ure arraysis i za , ~ ~_ ,n, 5,a~ ~ , ~ 1,5 ~ , ~ a,yt~ , ~ le,a f ,F~~1 , a ~a )n, r , t~ ~, ~ ,yt_z ~~. ~, . - - - ~ _ ,~ ,. ., v ,., . . . . ~ .. .. „~. - - -- - _~ r -- - - - a --~ - -- -~~ -~ , , ._ r .. , ,, .3, _~ ~ . ,. --- . . Y. ._i I CorMuctlvity Predictlorro 3000.0 2500 0 ,- 200D.0 E ~ 1599.9 ° fo9o.o 50o.a o.o 0 0.2 0.4 0.8 OB 1 1.2 1.4 1.8 1.8 2 Lb/9 Ft ~Caeet-2a40JOraen4lnimin ~ ^~Case0-2a40 PR4000 Case2-1a30JOrtlan4lnimin _.,;;.. Case S-2ai0PR8000 ^•M^•Caee3-2ad0 PRB --^~^~CaseB- 2a40Tam C ~18~Caee]-2a408uperLC Case 10-20/40Tem TF ~CaseB-2a405upea3C ^•4•^•Case9-20Id0Ope op conaamwlty Pretlictlone 31000.0 300000 ... ......... _..........~......... _....._ 290000 280000 .. .... ........ ......... ......... ._...._ 2]0000 .. ......... ......_.._ 28000.0 250000 - ...._ ....__. °____ 24000.0 23000 0 - ._ r ~_ 220000 210000 °' ' ~'~ ~. 20000 0 ~ 190000 180000 1]0000 d 18000 0 ._ ..._ -- Jf ~ ... ''~ ... `~` ... '. . S 15000.0 u 140000 '~ 13000.0 - a 120000 0 110000 ....... .... . .' .. .. ,. 19909 0 99099 ._ ...._ • ~ o W ~ss - ^" ]9 00 _„~ ~ 5090 0 - .. . 40009 3000 0 .. .. 2000 0 .... .. . . 10000 0.0 ..... ~ .... .. ..... 0 1 2 3 4 5 8 ] 8 8 10 ~Ceset-2adOJOraan-Unimin ^~°Case2-1a30.braan-Unimin ^~^Case3-2x40 PRB ^'~^'^Case4-2ad0 PRd000 wit-case]-zaa9svper~c Caee5-2a40PR8090 ~-ca.oe-zaaosapemc '^'~ CaseB- 2a40Tem DC +caaea-2a4o optl~rop -case f9-z9/4oTem TF z,5ao.o 1 IbIFt^2 $ tsoo.o X u° 1.099.0 € >.. ~ I 5000 3 Casal- 2a40JOrtla Cane[- 1a30JOrtla Caee3- Case4- ZIy40 Gaeen- 2a40PR80 Gaeea- 2a40Temp Cnser- 2a405uper Casen- 2ad0.9tper Gases- 2x40 Casero- 2a40Temp n-Unmin n-Unimin 2x40 PR6 PR4000 00 DC LC OC OpBProp TF ®wntl /$ 2188.]2 1]29.0] 243.92 308.02 482.35 28080 3]73] 341.38 258.51 328.82 mntl (mtlFf 33050 443.51 24880 189.73 308.]] 241.3181 252.83]3 293.5901 248.1849 192.]038 proppant Typa 1 1 _ 1 ~_ S z le/F4^z 1z.a9o.9 ............_ ...................................................._._.......,,...,.........................................._ ......._.................._,................................................ 1o.ao9.o e,oao.o 8 X s 5,ao9.9 F u 40000 k.. 2,0000 0.0 ~ ' 2aMlortlan 1d~rdaortla^T G2a40 2a40PR800 2adOTemp 2a408uperL Za408upar C2a40 2adOTempT Unimin I ~~ P~ PR4000 0 UC C ~ DC 0p6Prop F Unimin CoMUCtlvlty Predictlom OS IbIFHR 490.0 350.0 30D.0 250 0 200 0 160 0 100 0 I ~ i w.o W ~ ~ ~ -:m ,. o.o Ga°e~ Case4 Casee- Caaea- Case:- Cas..- Can..- C ase~u- 20/40JOrtlan 1813abrtla Caea3- 2x40 2a40PR890 2a40Temp 20/408uperL 2a40super 2a40 2adOTemp Unimin Unimin 2aao PRB pRd000 0 DC C OC OptlProp F /§ 34].34 21]6] 31.80 41.59 85.]] 3]06 4932 45.40 34.40 50.02 mtlFt 52A5 55.08 32 G4 25.]9 4608 31.8]44 33.00.72 39.0483 330282 29.5095 ProPPant Type I IbIFt^2 40.000.0 ~ ...................................................................:................................... 0 0.5 1 1.5 2 26 3 3.5 0 6.5 5 rt~Case 1 - 2adOJOrtlamUnimin MS±Case 2 - 16/30JOrtlan-Unimin °°~ Ca4e 3 - 2a/0 PRB --.mi--Cased-20/40 PR4000 '^<- Cme6-20/dOPR8000 "^3£-^CaseB-2adOTemCCDC ~MFCase T-2a408uperLC •4HCaseB 2a40SUpeNC. °°4^Caee9-2a400p6Vrop Case 10-2a40TempTF ~~~Caea1-2a40Jwtlan-Unimin ~-Caee2-1alJO.Iwtlen Un min C~aeB- ~~OTemB C +~~~~~-2Nd~0.5PirperLC n,,, a eB-2N60~8upet~DC - 9/400 ---case m-2a4orem T 35,000.0 30,OOp.O S 250000 5 200000 g 15,000.0 10.000 0 50000 j p FeI 0.0 133 ~k Caset- Caae2- CaneO- Canes- Canes- i Gene]- CesaB- P~~ CaaTFO Cane 3 - 20/40JOrtla 1afJOJortla 20/40 20/40PR80 20/40Temp 201dOSuper 20/405uper 20/40 TO/40Temp n-Unimin n-Unimin 20140 PR6 PR4000 00 DC LC DC ProPpant Typa The above report is based on sound engineering practices, but because of variable well conditions and other irdormation which must be relied upon, NuTaeh Energy Alliance makes no warranty, express or implied, as to the accuracy of the data or of any calculations or opinions expressed herein. you agree that NuTech Energy Alliance shall not be liable for any loss or damage whether due tonegligence or otherwise arising out of or In connection with such data calculations or opinions. Aurora Gas, LLC Three Mile Creek Unit #1 ~'~,~. (3,514 - 3,709 FT) Beluga PUMP SCHEDULE Kenai County, Alaska; Three Mile Creek Field Perfs: 3,530 - 3,545 FT (53 Holes); 3,556 - 3,566 FT (35 Holes); 3,662 - 3,672 FT (35 Holes); 3,683 - 3,703 FT (70 Holes) Max WHTP: 8,000 psi BHST: 106.2 degrees F Frac Gradient: 0.851 psi/ft Sta a Cumulative # Type Clean Vol (GALS) Fluid Type Blender Conc (PPG) Poppant Type Slurry Rate (BPM) Proppant (LBS) Clean VoI (BBLS) Slurry Vol (BBLS) Proppant (LBS) Time (MINS) Time Remaining (MINS) 1 Load Hole, Obtain Break 1,500 Treated Water 10 36 3.6 105.r', 2 DFIT 2,000 Treated Water 10 s3 33 8.3 102 0 $ SI (30 min) 0 33 33 33.3 67.3 4 PAD 40,000 201bBorate 50 1,036 1.036 5 4 67.3 5 PROP SLUG 2,500 20 Ib Borate 2.00 Ottawa-20/40 50 5,000 1 ,095 1 i o i 5 000 58.° 46.2 6 PAD 10,000 201b Borate 50 1.333 1.339 5 npo 63.4 4r>.~ 7 SLURRY 25,000 201b Borate 2.00 Ottawa-20/40 50 50,000 t 9~9 1,988 55,000 76.4 4~' $ SLURRY 33,000 201b Borate 4.00 Ottawa-20/40 50 132,000 2 %14 2,916 1 ^07,000 95.0 29.2 9 SLURRY 16,500 201bBorate 6.00 Ottawa-20/40 50 99,000 5107 3,416 236000 1o5.~J 10.6 10 FLUSH 1,335 Treated Water 50 3.139 3,447 ^35.000 105.6 v.b Treatment Totals: 131,835 gals 285,000 Ibs Tubular Data: Csg: 7" 26# N-80 from 0 - 8,113 FT Tbg: 3.5" 9.3# from 0 - 3,392 FT Liner: N/A Treatment Requirements: Fluid Requirements: 1. PAD fluid required to have greater than 1200 cp initial viscosity and greater than 500 cp 1. Pressure test pumps and line to 9,000 psi. viscosity (40 1/sec) after 67 mins at 106.2 degrees 2. All fluids to be mixed w/ 501 Ibs/Mgal (6%) crystalline KCI, 2 gal/Mgal surtactant, and contain 2. Each stage fluid is required to have at least 500 cp viscosity after the related job time biocide. remaining. 3. Breaker loadings to be determined prior to pumping job from lab testing, and to be provided to company representative. 3. 8 clean frac tanks required on location with 455 bbls of 6% KCI in each u 4. Proppant required: 286,000 Ibs. Ottawa-20/40 **Frac Co. to provide enough HP to pump 55 BPM @ 8,000 psi. • • ~ BJ SERVICES COMPANY RUSAn MATERIAL SAFETY DATA SHEET SECTION I -GENERAL INFORMATION PRODUCT NAME: ITEM NUMBER CHEMICAL DESCRIPTION: PRODUCT USE: SUPPLIER: ADDRESS: EMERGENCY TELEPHONE NUMBER PREPARED BY: DATE PREPARED: Potassium Chloride (KCI) 100114, 85-000000013370 Potassium Chloride CAS # 7447-40-7 Salt BJ Services Company 11211 FM 2920 Tomball, TX 77375 (800)424-9300 for CHEMTREC (703)527-3887 Alaska and International BJ Services Environmental Group (281)351-8131 October 28, 2003 Supersedes: November 9, 2000 HMIS HAZARD INDEX HEALTH: 0 FLAMMABILITY: 0 REACTIVITY: 0 PERSONAL PROTECTION: b SECTION II -HAZARDOUS COMPONENTS HAZARDOUS COMPONENTS CAS # PERCENT HAZARD No hazardous ingredients N.A. N.A. N.A. SECTION III -FIRE AND EXPLOSION HAZARD DATA FLASHPOINT (METHOD): UPPER EXPLOSION LIMIT(% BY VOL): LOWER EXPLOSION LIMIT(% BY VOL): AUTO-IGNITION TEMPERATURE: EXTINGUISHING MEDIA: SPECIAL FIRE FIGHTING PROCEDURES EXPLOSION DATA: HAZARDOUS COMBUSTION PRODUCTS N.A. N.A. N.A. N.A. Does not support combustion Non-Flammable N.A. N.A. SECTION IV -HEALTH HAZARD DATA PRIMARY ROUTES OF ENTRY: Skin and eye contact, inhalation, ingestion Potassium Chloride (KCI) -USA- Revised 11/01/2006/Page 1 UNCONTROLLED WHEN PRINTED ACUTE OVEREXPOSURE EFFECTS: • SKIN CONTACT: Can cause irritation SKIN ABSORPTION: Not absorbed by skin. EYE CONTACT: Eye contact may cause irritation and redness. INHALATION: Inhalation of high levels of vapors or mists may cause lightheadedness, dizziness, headaches or unconsciousness. INGESTION:. Ingestion can cause gastrointestinal irritation, nausea or vomiting. CHRONIC OVEREXPOSURE EFFECTS: Inhalation results in unpleasant deposits in nasal passages EXPOSURE LIMITS: HAZARDOUS COMPONENT ACGIH TLV OSHA PEL No hazardous ingredients 10 mg/m3 dust 15 mg/m3 dust CARCINOGENICITY, REPRODUCTIVE EFFECTS: Not listed as carcinogen - IARC, NTP, or OSHA TERATOGENICITY, MUTAGENICITY: No effects known TOXICITY STUDIES: LD(50) 2430 mg/kg (oral rat) LC(50) N.E. SECTION V -FIRST AID PROCEDURES FOR EYES: Immediately flush with plenty of water for at least 15 minutes. If irritation persists, contact a physician. FOR SKIN: Flush skin with water or wash with mild soap and water if available. If irritation persists, contact a physician. FOR INHALATION: Remove to fresh air. If breathing has stopped, give artificial respiration. Keep person warm, quiet and get medical attention. FOR INGESTION: Give plenty of water. Induce vomiting! Never give anything to an unconscious person. Call a physician. SECTION VI -PHYSICAL DATA APPEARANCE AND ODOR: SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air=1): EVAPORATION RATE: BOILING POINT: FREEZING POINT: SOLUBILITY IN H2O: pH: White, crystalline material, no odor 1.99 N.A. N.A. N.A. N.A. N.A. Complete 9.2 (1 % Solution) SECTION VII -REACTIVITY DATA Potassium Chloride (KCI) -USA- Revised 11/01/2006/Page 2 UNCONTROLLED WHEN PRINTED • M CHEMICAL STABILITY: Stable INCOMPATIBLE MATERIALS: N.A. HAZARDOUS POLYMERIZATION: Does not polymerize HAZARDOUS DECOMPOSITION PRODUCTS: N.A. SECTION VIII - SPECIAL/PERSONAL PROTECTION VENTILATION: The use of mechanical ventilation is recommended whenever this product is used in a confined space. Where engineering controls are not feasible, assure use is in an area where there is natural air movement. RESPIRATORY PROTECTION: Dust mask if needed PROTECTIVE GLOVES: Neoprene EYE PROTECTION: Glasses OTHER PROTECTIVE EQUIPMENT: None SECTION IX -HANDLING PRECAUTIONS LEAK AND SPILL PROCEDURES: Sweep up and place in suitable containers. WASTE DISPOSAL: If this product becomes a waste it does not meet the requirements of a RCRA hazardous waste. Always dispose of according to local/state/federal regulations. HANDLING & SPECIAL EQUIPMENT: None STORAGE REQUIREMENTS: None SECTION X -REGULATORY INFORMATION SHIPPING INFORMATION PROPER SHIPPING NAME: HAZARD CLASS: UN/NA NUMBER: PACKING GROUP W/ "PG": SUBSIDIARY RISK: REPORTABLE QUANTITY (RQ): EMERGENCY RESPONSE GUIDE #: ENVIRONMENTAL INFORMATION SARA TITLE III Not DOT Regulated N.A. N.A. N.A N.A. N.A. N.A. SECTION 302/304 This product does not contain ingredients listed as an Extremely Hazardous Substance. SECTION 311/312 Immediate SECTION 313 This product does not contain ingredients (at a level of 1 % or greater) on the List of Toxic Chemicals. OTHER REGULATORY INFORMATION TSCA INVENTORY: All of the components in this appear on the TSCA inventory. CALIFORNIA PROP 65: None of the chemicals on the current Proposition 65 list are Potassium Chloride (KCI) -USA- Revised 11/01/2006/Page 3 UNCONTROLLED WHEN PRINTED • known to be present in this product. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. Potassium Chloride (KCI) -USA- Revised 11/01/2006/Page 4 UNCONTROLLED WHEN PRINTED ~ BJ SERVICES COMPANY RUSAn ~ MATERIAL SAFETY DATA SHEET 1 PRODUCT AND COMPANY IDENTIFICATION Product Name: GLFC-5D Item Number: 398373 Product Use: Gellant -Water Supplier: BJ Services Company 11211 FM 2920 Tomball, TX 77375 (281)351-8131 IN CASE OF EMERGENCY CALL: (800) 424-9300 for CHEMTREC (703) 527-3887 for International HMIS HAZARD INDEX HEALTH: 1 FLAMMABILITY: 1 REACTIVITY: 0 PERSONAL PROTECTION: h 2 COMPOSITION/INFORMATION ON INGREDIENTS Hazardous Component _.._ __ _ CAS# Percent Hazard Alkanes /Alkenes -- _ ' Multiple _ 45 - 50 Irritant _ ;Guar gum __ _ 009000-30-0 _ 45 - 50 _._ Irritant _ 3 HAZARDS IDENTIFICATION PRIMARY ROUTES OF EXPOSURE: ACUTE OVEREXPOSURE EFFECTS: Inhalation. Skin contact. Eye contact. INHALATION: May cause central nervous system depression. INGESTION: Product has a low order of acute oral toxicity, but minute amounts aspirated into the lungs during ingestion may cause severe pulmonary injury or death. EYE CONTACT: May cause mild eye irritation. SKIN CONTACT: May cause mild skin irritation. Prolonged contact may cause drying of skin. EXPOSURE LIMITS: HAZARDOUS COMPONENT ACGIH TLV OSHA PEL Alkanes /Alkenes 5 mg/m3 ', 5 mg/m3 - __ Guar gum NA NA _. __ LC50 inhalation LD50 oral _.. NA ;NA NA 6770 mg/kg rat GLFC-5D -USA- Revised 10/27/2006/Page 1 UNCONTROLLED WHEN PRINTED 4 FIRST AID MEASURES INHALATION: If inhaled, remove to fresh air. If not breathing give artificial respiration, preferably mouth-to-mouth. If breathing is difficult give oxygen. Only trained personnel should administer oxygen. Get medical attention. INGESTION: DO NOT induce vomiting. Get medical attention! If vomiting occurs, keep head lower than hips to prevent aspiration. EYES: In case of contact, immediately flush eyes with plenty of water for at least 15 minutes and get medical attention. SKIN: Flush skin with water or soap and water, if available, for at least 15 minutes. Remove contaminated clothing and shoes. Seek medical attention if irritation persists. 5 FIRE FIGHTING MEASURES FLASHPOINT (METHOD): > 200°F (SPCC) LOWER EXPLOSION LIMIT (% v/v): Not applicable/available UPPER EXPLOSION LIMIT (% v/v): Not applicable/available AUTO-IGNITION TEMPERATURE: Not available/applicable SPECIAL HAZARDS None. EXTINGUISHING MEDIA: On small fires, dry chemical, dry sand, or C02 may also be effective in large quantities. For large fire, water spray or fog. Foam. SPECIAL FIREFIGHTING PROCEDURES: Cool exposed containers with water spray. Fire-fighters should wear self-contained breathing apparatus and full protective clothing when fighting chemical fires. HAZARDOUS COMBUSTION PRODUCTS: Oxides of carbon. 6 ACCIDENTAL RELEASE MEASURES Dike to contain. Cover spill with absorbent material. Scoop absorbed material into a suitable container for disposal 7 HANDLING AND STORAGE HANDLING: Avoid contact with skin and eyes. Do not inhale vapors. STORAGE REQUIREMENTS: Keep container closed when not in use. Keep away from ignition sources 8 EXPOSURE CONTROLS/PERSONAL PROTECTION SPECIFIC ENGINEERING CONTROLS: Adequate ventilation should be provided to keep concentrations below acceptable exposure limits. PERSONAL PROTECTIVE EQUIPMENT: Appropriate respiratory protection shall be worn when applied engineering controls are not adequate to protect against inhalation exposure. Safety glasses. Neoprene gloves. Rubber gloves. 9 PHYSICAL AND CHEMICAL PROPERTIES PHYSICAL STATE: COLOR: ODOR: ODOR THRESHOLD: Liquid Light brown, Tan Mild Hydrocarbon Not available/applicable GLFC-5D -USA- Revised 10/27/2006/Page 2 UNCONTROLLED WHEN PRINTED SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air = 1): EVAPORATION RATE: BOILING POINT: FREEZING POINT: pH: VISCOSITY (F): SOLUBILITY IN WATER: 1.00 - 1.01 Not available/applicable Not available/applicable Not available/applicable Not available/applicable Not available/applicable Not available/applicable Not available/applicable Insoluble 10 STABILITY AND REACTIVITY STABILITY: Stable. INCOMPATIBILITY/CONDITIONS OF REACTIVITY: Strong oxidizers. HAZARDOUS THERMAL DECOMPOSITION PRODUCTS: Carbon monoxide. Carbon dioxide. HAZARDOUS POLYMERIZATION: Will not occur. 11 TOXICOLOGICAL PROPERTIES CHRONIC EFFECTS: None known. SENSITIZATION: Not known. CARCINOGENICITY: None of the components of this product have been listed as carcinogenic by IARC, NTP or OSHA. (IARC- International Agency for Research on Cancer) (NTP -National Toxicology Program) (OSHA -Occupational Safety & Health Administration (US)) MUTAGENICITY: Not known. REPRODUCTIVE TOXICITY: Not known. 12 ECOLOGICAL INFORMATION No specific information available 13 DISPOSAL CONSIDERATIONS WASTE DISPOSAL: As local regulations may vary; all waste must be disposed/recycled/reclaimed in accordance with federal, state, and local environmental control regulations. GLFC-5D -USA- Revised 10/27/2006/Page 3 UNCONTROLLED WHEN PRINTED 14 TRANSPORT INFORMATION LAND TRANSPORT (DOT) Proper Shipping Name: NOT RESTRICTED UN No.: NA AIR TRANSPORT (ICAO/IATA) Proper Shipping Name: NOT RESTRICTED UN/ID No.: NA MARINE TRANSPORT (IMDGlIMO) Proper Shipping Name: NOT RESTRICTED UN/ID No.: NA 15 REGULATORY INFORMATION SARA TITLE III: SECTION 302/304 This product does not contain substances listed in Appendix A and B as an Extremely Hazardous Substance. SECTION 311/312 Immediate SECTION 313 This product does not contain ingredients (at a level of 1 % or greater) on the List of Toxic Chemicals. TSCA INVENTORY: The substances in this product are included on or exempted from the TSCA 8(b) Inventory (40 CFR 710) CALIFORNIA PROP 65: This product does not contain substances which require warning under California Proposition 65. 16 OTHER INFORMATION ISSUE DATE: 12/14/2004 PREPARED BY: BJ SERVICES ENVIRONMENTAL GROUP REFERENCES: Suppliers' Literature. Suspect Chemicals Sourcebook Guide to Occupational Exposure Values - 2004, American Conference of Governmental Industrial Hygienists, 2004. Dangerous Properties of Industrial Materials, 9th ed.; N. Irving Sax, 1996. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. GLFC-5D -USA- Revised 10/27/2006/Page 4 UNCONTROLLED WHEN PRINTED w C~ ~ BJ SERVICES COMPANY Region USA MATERIAL SAFETY DATA SHEET SECTION I -GENERAL INFORMATION PRODUCT NAME: ITEM NUMBER CHEMICAL DESCRIPTION: PRODUCT USE: SUPPLIER: ADDRESS: EMERGENCY TELEPHONE NUMBER PREPARED BY: DATE PREPARED: GBW-12 CD 488108, 424317 Hemicellulase enzyme Breaker -water BJ Services Company 11211 FM 2920 Tomball, TX 77375 (800)424-9300 for CHEMTREC (703)527-3887 Alaska and International BJ Services Environmental Group (281)351-8131 October 24, 2001 Supersedes: September 5, 2000 HMIS HAZARD INDEX HEALTH: 1 FLAMMABILITY: 1 REACTIVITY: 0 PERSONAL PROTECTION: g SECTION II -HAZARDOUS COMPONENTS HAZARDOUS COMPONENTS CAS # PERCENT HAZARD No hazardous ingredients N.A. N.A. N.A. SECTION ill -FIRE AND EXPLOSION HAZARD DATA FLASHPOINT (METHOD): > 200°F UPPER EXPLOSION LIMIT(% BY VOL): N.E. LOWER EXPLOSION LIMIT(% BY VOL): N.E. AUTO-IGNITION TEMPERATURE: N.E. EXTINGUISHING MEDIA: Water spray SPECIAL FIRE FIGHTING PROCEDURES: None EXPLOSION DATA: None HAZARDOUS COMBUSTION PRODUCTS: N.E. SECTION IV -HEALTH HAZARD DATA PRIMARY ROUTES OF ENTRY: Eye contact, inhalation GBW-12CD -USA- Revised 10/25/2006/Page 1 UNCONTROLLED WHEN PRINTED r~ L~ ACUTE OVEREXPOSURE EFFECTS: SKIN CONTACT: May cause minor irritation following prolonged direct contact. SKIN ABSORPTION: Not know to occur EYE CONTACT: Material may cause eye irritation upon direct contact. INHALATION: Can cause allergic type response in susceptible individuals upon repeated or prolonged exposure. INGESTION: Not known to result in significant adverse health effects. CHRONIC OVEREXPOSURE EFFECTS: Repeated inhalation can result in sensitization and allergic reaction in hypersensitive individuals. EXPOSURE LIMITS: HAZARDOUS COMPONENT ACGIH TLV OSHA PEL No hazardous ingredients N.E. N.E. CARCINOGENICITY, REPRODUCTIVE EFFECTS: Not listed as carcinogen- IARC, NTP, or OSHA TERATOGENICITY, MUTAGENICITY: No effects listed. TOXICITY STUDIES: LD(50) > 2g/kg (rat) LC(50) N.E. SECTION V -FIRST AID PROCEDURES FOR EYES: Flush with low pressure water for at least 15 minutes. If irritation persists, seek medical attention. FOR SKIN: Wash with soap and water. Remove contaminated clothes and wash before reuse. FOR INHALATION: Remove from contaminated area to fresh air. Seek medical attention if allergic response exhibited. FOR INGESTION: Rinse mouth and throat thoroughly with water. SECTION VI -PHYSICAL DATA APPEARANCE AND ODOR: SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air=1): EVAPORATION RATE: BOILING POINT: FREEZING POINT: SOLUBILITY IN H2O: pH: Brown aqueous solution -slight fermentation odor 1.2 N.E. N.E. N.E. N.E. N.E. Complete 3.8 - 8.0 GBW-12CD -USA- Revised 10/25/2006/Page 2 UNCONTROLLED WHEN PRINTED SECTION VII -REACTIVITY DATA CHEMICAL STABILITY: Stable INCOMPATIBLE MATERIALS: None known HAZARDOUS POLYMERIZATION: Does not polymerize HAZARDOUS DECOMPOSITION PRODUCTS: None SECTION VIII -SPECIAL/PERSONAL PROTECTION VENTILATION: The use of mechanical ventilation is recommended whenever this product is used in a confined space. Where engineering controls are not feasible, assure use is in an area where there is natural air movement. RESPIRATORY PROTECTION: None required under normal conditions of use. PROTECTIVE GLOVES: Rubber EYE PROTECTION: Goggles OTHER PROTECTIVE EQUIPMENT: Eyewash bottles or other rinsing equipment should be easily accessible. SECTION IX -HANDLING PRECAUTIONS LEAK AND SPILL PROCEDURES: Dike or contain spill to prevent material from entering waterways. Pump large spills into salvage containers while avoiding formation of aerosols. Soak up residue or small spills with absorbent pads, clay, or dirt and place in salvage containers. Avoid formation of dust from dried product. Product is readily biodegradable. WASTE DISPOSAL: If this product becomes a waste it does not meet the requirements of a RCRA hazardous waste. Always dispose of according to all local/state/and federal regulations. HANDLING & SPECIAL EQUIPMENT: Avoid formation of aerosols and formation of dust by dried product. STORAGE REQUIREMENTS: Material should be stored in a refrigerator or between 35-40°F to prolong shelf life. Do not allow material to freeze. SECTION X -REGULATORY INFORMATION SHIPPING INFORMATION PROPER SHIPPING NAME: HAZARD CLASS: UN/NA NUMBER: PACKING GROUP W/ "PG": SUBSIDIARY RISK: REPORTABLE QUANTITY (RQ): EMERGENCY RESPONSE GUIDE # ENVIRONMENTAL INFORMATION Not DOT Regulated N.A. N.A. N.A. N.A. N.A. N.A. GBW-12CD -USA- Revised 10/25/2006/Page 3 UNCONTROLLED WHEN PRINTED SARA TITLE III SECTION 302/304 This product does not contain ingredients listed as an Extremely Hazardous Substance. SECTION 311/312 Immediate SECTION 313 This product does not contain ingredients (at a level of 1% or greater) on the List of Toxic Chemicals. OTHER REGULATORY INFORMATION TSCA INVENTORY: All of the components in this appear on the TSCA inventory. CALIFORNIA PROP 65: None of the chemicals on the current Proposition 65 list are known to be present in this product. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. GBW-12CD -USA- Revised 10/25/2006/Page 4 UNCONTROLLED WHEN PRINTED ~ BJ SERVICES COMPANY Region USA MATERIAL SAFETY DATA SHEET SECTION I -GENERAL INFORMATION PRODUCT NAME: ITEM NUMBER CHEMICAL DESCRIPTION: PRODUCT USE: SUPPLIER: ADDRESS: EMERGENCY TELEPHONE NUMBER PREPARED BY: DATE PREPARED: BF-8L 425143 An alkanolamine in water Buffer for fracturing BJ Services Company 11211 FM 2920 Tomball, TX 77375 (800)424-9300 for CHEMTREC (202)483-7616 Alaska and International BJ Services Environmental Group (281)351-8131 August 4, 2000 Supersedes: December 1992 HMIS HAZARD INDEX HEALTH: 3 FLAMMABILITY: 2 REACTIVITY: 0 PERSONAL PROTECTION: i SECTION II -HAZARDOUS COMPONENTS HAZARDOUS COMPONENTS CAS # PERCENT HAZARD Monoethanolamine 141-43-5 85 Irritant, toxic SECTION III -FIRE AND EXPLOSION HAZARD DATA FLASHPOINT (METHOD): UPPER EXPLOSION LIMIT(% BY VOL): LOWER EXPLOSION LIMIT(% BY VOL): AUTO-IGNITION TEMPERATURE: EXTINGUISHING MEDIA: SPECIAL FIRE FIGHTING PROCEDURES: EXPLOSION DATA: 146°F (PMCC) N.E. N.E. N.E. Dry chemical, C02, foam or water spray. Water or foam may cause frothing. Use water to cool fire-exposed containers. If a leak or spill has not ignited, use water spray to disperse the vapors and to provide protection for persons attempting to stop the leak. None HAZARDOUS COMBUSTION PRODUCTS Ammonia, carbon monoxide, and carbon dioxide may be formed on burning in limited air supply. SECTION IV -HEALTH HAZARD DATA BF-8L -USA- Revised 10/03/2006/Page 1 UNCONTROLLED WHEN PRINTED C~ PRIMARY ROUTES OF ENTRY: Skin and eye contact, skin absorption, inhalation, ingestion ACUTE OVEREXPOSURE EFFECTS: SKIN CONTACT: Causes local discomfort or pain, severe excess redness and swelling, with chemical burns. SKIN ABSORPTION: Toxic. Prolonged or widespread skin contact may result in the absorption of potentially harmful amounts of material. EYE CONTACT: Liquid causes severe irritation, experienced as discomfort and pain, with blinking and excess tear production, and seen as marked excess redness and swelling of the conjunctiva and chemical burns of the eyes. INHALATION: Vapors may be irritating and cause coughing and discomfort in the nose, throat, and chest. Prolonged exposure may cause local injury to the respiratory tract. INGESTION: May cause chemical burns of the mouth, throat, esophagus, and stomach. Signs and symptoms will include pain or discomfort in the mouth, chest, and abdomen, nausea, vomiting, diarrhea, dizziness, drowsiness, faintness, weakness, collapse and coma. Aspiration may occur during swallowing or vomiting, resulting in lung injury. CHRONIC OVEREXPOSURE EFFECTS: May possibly cause kidney and liver damage. May aggravate asthma and inflammatory or fibrotic pulmonary disease. Because of its irritating properties, this material may aggravate an existing dermatitis. EXPOSURE LIMITS: HAZARDOUS COMPONENT ACGIH TLV OSHA PEL Monoethanolamine 3 ppm 3 ppm CARCINOGENICITY, REPRODUCTIVE EFFECTS: Do not use sodium nitrite or other nitrosating agents in formulation containing this product. Suspected cancer-causing nitrosamines could be formed. TERATOGENICITY, MUTAGENICITY: No effects listed. TOXICITY STUDIES: LD(50) 1-2 g/kg (oral rat) LC(50) N.E. SECTION V -FIRST AID PROCEDURES FOR EYES: Flush thoroughly with water for at least fifteen minutes. Get immediate medical attention. FOR SKIN: If drenched, remove contaminated clothing under safety shower and flood exposed areas with water. Get immediate medical attention. Wash clothing before reuse. BF-8L -USA- Revised 10/03/2006/Page 2 UNCONTROLLED WHEN PRINTED FOR INHALATION: Remove to fresh air. If breathing has stopped, give artificial respiration. Keep person warm, quiet and get medical attention. FOR INGESTION: DO NOT induce vomiting. Never give anything by mouth to an unconscious person. Get medical attention. SECTION VI -PHYSICAL DATA APPEARANCE AND ODOR: SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air=1): EVAPORATION RATE: BOILING POINT: FREEZING POINT: SOLUBILITY IN H2O: pH: Light colored liquid, no odor 1.03 N.E. N.E. Nil N.E. Less than Appreciable 12 SECTION VII -REACTIVITY DATA CHEMICAL STABILITY: Stable INCOMPATIBLE MATERIALS: Avoid contamination with strong acids, strong bases, strong oxidizing agents, aldehydes, ketones, acrylates, organic anhydrides and organic halides. HAZARDOUS POLYMERIZATION: Does not polymerize HAZARDOUS DECOMPOSITION PRODUCTS: See combustion products SECTION VIII -SPECIAL/PERSONAL PROTECTION VENTILATION: The use of mechanical ventilation is recommended whenever this product is used in a confined space. Where engineering controls are not feasible, assure use is in an area where there is natural air movement. RESPIRATORY PROTECTION: Not needed unless cleaning large spills or upon entry into tanks, vessels or other confined spaces in which case a supplied air respirator should be worn. PROTECTIVE GLOVES: Rubber or neoprene EYE PROTECTION: Goggles with face shield. DO NOT wear contact lenses when handling this product. OTHER PROTECTIVE EQUIPMENT: Eyewash bottles or other rinsing equipment should be easily accessible. When handling large quantities subject to splashes and spills, impervious suits, gloves and rubber boots must also be added. SECTION IX -HANDLING PRECAUTIONS LEAK AND SPILL PROCEDURES: Avoid all personal contact. Contain spill if possible. Wipe up or absorb on suitable material and shovel up. WASTE DISPOSAL: If this product becomes a waste it does not meet the requirements of a RCRA hazardous. Always dispose of according to all local, state, and federal laws and regulations. HANDLING & SPECIAL EQUIPMENT: Do not get in eyes, on skin or clothing. Avoid breathing vapor or mist. Keep container closed. Use only in well-ventilated area. BF-8L -USA- Revised 10/03/2006/Page 3 UNCONTROLLED WHEN PRINTED Wash thoroughly after handling. STORAGE REQUIREMENTS: Minimum feasible handling temperatures should be maintained. Periods of exposure to high temperatures should be minimized. Water contamination should be avoided. SECTION X -REGULATORY INFORMATION SHIPPING INFORMATION PROPER SHIPPING NAME: HAZARD CLASS: UN/NA NUMBER: PACKING GROUP W/ "PG": SUBSIDIARY RISK: REPORTABLE QUANTITY (RQ): EMERGENCY RESPONSE GUIDE #: ENVIRONMENTAL INFORMATION SARA TITLE III Ethanolamine solutions 8 UN 2491 PG III N.A. N.A. 153 SECTION 302/304 This product does not contain ingredients listed as an Extremely Hazardous Substance. SECTION 311/312 Immediate, Delayed SECTION 313 This product does not contain ingredients (at a level of 1 % or greater) on the List of Toxic Chemicals. OTHER REGULATORY INFORMATION TSCA INVENTORY: All of the components in this appear on the TSCA inventory. CALIFORNIA PROP 65: None of the chemicals on the current Proposition 65 list are known to be present in this product. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. BF-SL -USA- Revised 10/03/2006/Page 4 UNCONTROLLED WHEN PRINTED ~ BJ SERVICES COMPANY RUSAn j ' MATERIAL SAFETY DATA SHEET SECTION I -GENERAL INFORMATION PRODUCT NAME: ITEM NUMBER CHEMICAL DESCRIPTION: PRODUCT USE: SUPPLIER: ADDRESS: EMERGENCY TELEPHONE NUMBER PREPARED BY: DATE PREPARED: Clay Master 5C 499808 Quaternary polyamines Clay control BJ Services Company 11211 FM 2920 Tomball, TX 77375 (800)424-9300 for CHEMTREC (202)483-7616 Alaska and International BJ Services Environmental Group (281)351-8131 August 4, 2000 Supersedes:December 19, 1995 HMIS HAZARD INDEX HEALTH: 1 FLAMMABILITY: 1 REACTIVITY: 0 PERSONAL PROTECTION: d SECTION II -HAZARDOUS COMPONENTS HAZARDOUS COMPONENTS CAS # PERCENT HAZARD No hazardous ingredients N.A. N.A. N.A. SECTION III -FIRE AND EXPLOSION HAZARD DATA FLASHPOINT (METHOD): UPPER EXPLOSION LIMIT(% BY VOL): LOWER EXPLOSION LIMIT(% BY VOL): AUTO-IGNITION TEMPERATURE: EXTINGUISHING MEDIA: SPECIAL FIRE FIGHTING PROCEDURES: EXPLOSION DATA: >200°F (PMCC) N.E. N.E. N.E. Dry chemical, C02, water spray or regular foam This material may burn, but does not readily ignite. Move container from fire area if you can do so without risk. Apply cooling water to sides of containers that are exposed to flames until well after fire is out. Stay away from ends of containers. None listed HAZARDOUS COMBUSTION PRODUCTS: May form oxides of carbon, nitrogen, and chlorine SECTION IV -HEALTH HAZARD DATA Clay Master-5C -USA- Revised 10/04/2006/Page 1 UNCONTROLLED WHEN PRINTED PRIMARY ROUTES OF ENTRY Eye and skin contact, inhalation ACUTE OVEREXPOSURE EFFECTS: SKIN CONTACT: SKIN ABSORPTION EYE CONTACT: INHALATION: INGESTION: May cause mild irritation No effects listed May cause mild irritation May cause mild irritation May cause nausea CHRONIC OVEREXPOSURE EFFECTS: No effects listed EXPOSURE LIMITS: HAZARDOUS COMPONENT ACGIH TLV OSHA PEL No hazardous ingredients N.A. N.A. CARCINOGENICITY, REPRODUCTIVE EFFECTS: Not listed as carcinogenic - IARC, NTP, or OSHA TERATOGENICITY, MUTAGENICITY: No effects listed TOXICITY STUDIES: LD(50) N.E. LC(50) N.E. SECTION V -FIRST AID PROCEDURES FOR EYES: Immediately flush with running water for at least 15 minutes. FOR SKIN: Wash with soap and water, removing clothing if contaminated FOR INHALATION: Remove to fresh air. If breathing is labored, give oxygen. If breathing has stopped, give artificial respiration. Keep person warm, quiet and get medical attention. FOR INGESTION: DO NOT INDUCE VOMITING. Give large amounts of water or milk to drink. Consult a physician for further instructions. SECTION VI -PHYSICAL DATA APPEARANCE AND ODOR SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air=1): EVAPORATION RATE: BOILING POINT: FREEZING POINT: SOLUBILITY IN H2O: pH: Clear amber liquid 1.144 N.E. N.E. N.E. N.E. N.E. Soluble 7 SECTION VII -REACTIVITY DATA Clay Master-5C -USA- Revised 10/04/2006/Page 2 UNCONTROLLED WHEN PRINTED CHEMICAL STABILITY: Stable INCOMPATIBLE MATERIALS: Strong oxidizers HAZARDOUS POLYMERIZATION: Does not polymerize HAZARDOUS DECOMPOSITION PRODUCTS: Oxides of carbon, nitrogen, and chlorine SECTION VIII -SPECIAL/PERSONAL PROTECTION VENTILATION: The use of mechanical ventilation is recommended whenever this product is used in a confined space. Where engineering controls are not feasible, assure use is in an area where there is natural air movement. RESPIRATORY PROTECTION: None required under normal conditions. Use SCBA when entering tanks. PROTECTIVE GLOVES: Chemically resistant/non-slip EYE PROTECTION: Chemical safety goggles/safety glasses OTHER PROTECTIVE EQUIPMENT: Coveralls, splash aprons, eyewash bottles or other rinsing equipment should be easily accessible. SECTION IX -HANDLING PRECAUTIONS LEAK AND SPILL PROCEDURES: Stop leak if you can do it without risk. Take up with sand or other noncombustible absorbent material and place in DOT approved containers. WASTE DISPOSAL: If this product becomes a waste it does not meet the requirements of a RCRA hazardous waste. Always dispose of according to all local/state/and federal regulations. HANDLING & SPECIAL EQUIPMENT: Clean up spills promptly. Wash contaminated clothing. STORAGE REQUIREMENTS: No special recommendations. SECTION X -REGULATORY INFORMATION SHIPPING INFORMATION PROPER SHIPPING NAME: HAZARD CLASS: UN/NA NUMBER: PACKING GROUP W/ "PG": SUBSIDIARY RISK: REPORTABLE QUANTITY (RQ): EMERGENCY RESPONSE GUIDE #: ENVIRONMENTAL INFORMATION SARA TITLE III Not DOT Regulated N.A. N.A. N.A. N.A. N.A. N.A. SECTION 302/304 This product does not contain ingredients listed as an Extremely Hazardous Substance. SECTION 311/312 Immediate SECTION 313 This product does not contain ingredients (at a level of 1% or greater) on the List of Toxic Chemicals. Clay Master-5C -USA- Revised 10/04/2006/Page 3 UNCONTROLLED WHEN PRINTED OTHER REGULATORY INFORMATION C7 TSCA INVENTORY: All of the components in this appear on the TSCA inventory. CALIFORNIA PROP 65: None of the chemicals on the current Proposition 65 list are known to be present in this product. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. Revision: Sec/Para Changed Change Made: Date 1 N/A Initial Issue of Document Today 2 I Telephone number 08/04/00 3 I Address Change 10/04/06 Clay Master-5C -USA- Revised 10/04/2006/Page 4 UNCONTROLLED WHEN PRINTED ~ BJ SERVICES COMPANY R~sA~ ~ MATERIAL SAFETY DATA SHEET SECTION I -GENERAL INFORMATION PRODUCT NAME: ITEM NUMBER: CHEMICAL DESCRIPTION: PRODUCT USE: SUPPLIER: ADDRESS: EMERGENCY TELEPHONE NUMBER PREPARED BY: DATE PREPARED: XLW-32 499630, 499796 Boric oxide in methanol Crosslinker BJ Services Company 11211 FM 2920 Tomball, TX 77375 (800)424-9300 for CHEMTREC (202)483-7616 Alaska and International BJ Services Environmental Group (281)351-8131 November 10, 2000 Supersedes: June 14, 1999 HMIS HAZARD INDEX HEALTH: 2 FLAMMABILITY: 3 REACTIVITY: 0 PERSONAL PROTECTION: b SECTION II -HAZARDOUS COMPONENTS HAZARDOUS COMPONENTS CAS # PERCENT HAZARD Methanol Boric oxide 67-56-1 1303-86-2 < 90 < 20 Flammable Toxic SECTION 111 -FIRE AND EXPLOSION HAZARD DATA FLASHPOINT (METHOD): UPPER EXPLOSION LIMIT(% BY VOL): LOWER EXPLOSION LIMIT(% BY VOL) AUTO-IGNITION TEMPERATURE: EXTINGUISHING MEDIA: SPECIAL FIRE FIGHTING PROCEDURES: 68°F (TCC) N.E. N.E. N.E. C02, dry chemical, water spray/fog, or foam. Use water to keep containers cool. Isolate "fuel" supply from fire. Contain fire fighting liquids for proper disposal. Do not enter confined fire space without proper personal protective equipment including NIOSH approved self-contained breathing apparatus with full facepiece operated in the positive pressure demand mode. Do not inject a solid stream of water or foam into hot, burning pools; this may cause splattering and increase fire intensity. Evacuate personnel to a safe area. Keep unnecessary people away. XLW-32 -USA- Revised 11J06/2006/Page 1 UNCONTROLLED WHEN PRINTED • EXPLOSION DATA: HAZARDOUS COMBUSTION PRODUCTS This material is volatile and readily gives off vapors that may travel along the ground or be moved by ventilation and ignited by pilot lights, other flames, sparks, heaters, smoking, electrical motors, static discharge, or other ignition sources at locations distant from material handling point. Never use welding or cutting torch on or near drum (even empty) because product (even just residue) can ignite explosively. Containers may explode from internal pressure if confined to fire. Keep containers cool. Keep unnecessary people away. Smoke, carbon monoxide and carbon dioxide SECTION IV -HEALTH HAZARD DATA PRIMARY ROUTES OF ENTRY: Skin and eye contact, inhalation ACUTE OVEREXPOSURE EFFECTS: SKIN CONTACT: May produce skin irritation, redness, peeling, defatting and dermatitis. SKIN ABSORPTION: Exposure to this material can result in absorption through skin causing a health hazard. EYE CONTACT: May cause moderate irritation, including burning sensation, tearing, redness, swelling and blurred vision. INHALATION: Overexposure may cause coughing, shortness of breath, dizziness, intoxication and collapse. Can cause nasal and respiratory irritation, weakness, fatigue, headache, and possible unconsciousness and even death. INGESTION: Can cause gastrointestinal irritation, acidosis, nausea, vomiting, diarrhea, ocular toxicity ranging from diminished visual capacity to complete blindness, and death. CHRONIC OVEREXPOSURE EFFECTS: May cause liver abnormalities, kidney damage, eye damage, lung damage, brain damage and nervous system damage. EXPOSURE LIMITS: HAZARDOUS COMPONENT ACGIH TLV OSHA PEL Methanol N.E. 200 mg/m3 Boric oxide N.E. 10 mg/m3 CARCINOGENICITY, REPRODUCTIVE EFFECTS: Not listed as carcinogenic - IARC, NTP, or OSHA TERATOGENICITY, MUTAGENICITY: No effects listed TOXICITY STUDIES: LD(50) N.E. LC(50) N.E. XLW-32 -USA- Revised 11/06/2006/Page 2 UNCONTROLLED WHEN PRINTED SECTION V -FIRST AID PROCEDURES FOR EYES: Flush eyes immediately with large amounts of water for at least 15 minutes. Lift lower and upper lids occasionally. Get medical attention. FOR SKIN: Wash with soap and water. Remove contaminated clothing and launder contaminated clothing before reuse. Get medical attention if redness or irritation develops. FOR INHALATION: Remove to fresh air. If breathing is labored, give oxygen. If breathing has stopped, give artificial respiration. Keep person warm, quiet and get medical attention. FOR INGESTION: Call a physician immediately. Give victim a glass of water. DO NOT induce vomiting unless instructed by a physician or poison control center. Never give anything by mouth to an unconscious person. SECTION VI -PHYSICAL DATA APPEARANCE AND ODOR: SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air=1): EVAPORATION RATE: BOILING POINT: FREEZING POINT: SOLUBILITY IN H2O: pH: Clear, colorless liquid; alcohol odor 0.885 N.E. N.E. N.E. N.E. N.E. Complete N.A. SECTION VII -REACTIVITY DATA CHEMICAL STABILITY: Stable INCOMPATIBLE MATERIALS: Avoid contact with strong oxidizing agents, strong alkalies, and strong mineral acids. HAZARDOUS POLYMERIZATION: Does not polymerize HAZARDOUS DECOMPOSITION PRODUCTS: Thermal decomposition or combustion may produce smoke, carbon monoxide and carbon dioxide. SECTION VIII -SPECIAL/PERSONAL PROTECTION VENTILATION: The use of mechanical ventilation is recommended whenever this product is used in a confined space. Where engineering controls are not feasible, assure use is in an area where there is natural air movement. RESPIRATORY PROTECTION: If workplace exposure limits of product or any component is exceeded, an NIOSH/MSHA approved air supplied respirator is advised in absence of proper environmental control. OSHA regulations also permit other NIOSH/MSHA respirators (negative pressure organic vapor type) under specified conditions. Engineering or administrative controls should be implemented to reduce exposure. PROTECTIVE GLOVES: Neoprene, nitrite, polyvinyl alcohol (PVA), polyvinyl chloride (PVC) EYE PROTECTION: Chemical splash goggles or face shield in compliance with OSHA regulations is advised; however OSHA regulations also permits safety glasses under certain conditions. The use of XLW-32 -USA- Revised 11/06/2006/Page 3 UNCONTROLLED WHEN PRINTED contact lenses is not recommended. OTHER PROTECTIVE EQUIPMENT: Eyewash bottles or other rinsing equipment should be easily accessible. SECTION IX -HANDLING PRECAUTIONS LEAK AND SPILL PROCEDURES: Eliminate sources of ignition. Persons not wearing suitable personal protective equipment should be excluded from area of spill until clean-up has been completed. Shut off source of spill if possible to do so without hazard. Prevent material from entering sewers or watercourses. Provide adequate ventilation. Contain spilled materials with sand or earth. Recover undamaged material for reuse or reclamation. Place all collected material and spill absorbents into DOT approved containers. WASTE DISPOSAL: If this material becomes a waste it does meet the requirements of a RCRA hazardous waste with the waste code D001. Always dispose of according to all local/state/and federal regulations. HANDLING & SPECIAL EQUIPMENT: Avoid contact with eyes, skin, or clothing. Avoid breathing vapors or mist. Keep away from heat sparks, and open flames and never use a cutting torch on or near container or explosion may result. Vapors may travel to areas away from the work site and ignite. Do not transfer to improperly marked container. Do not use pressure to empty container. Use with adequate ventilation. Wash thoroughly after handling. Containers should be grounded and bonded to receiving container when being emptied. STORAGE REQUIREMENTS: Keep container closed and away from heat, sparks, and open flames. SECTION X -REGULATORY INFORMATION SHIPPING INFORMATION PROPER SHIPPING NAME: HAZARD CLASS: UN/NA NUMBER: PACKING GROUP W/ "PG": SUBSIDIARY RISK: REPORTABLE QUANTITY (RQ): EMERGENCY RESPONSE GUIDE #: ENVIRONMENTAL INFORMATION SARA TITLE III Flammable liquids, n.o.s. (contains methanol) 3 UN1993 PG II N.A. N.A. 128 SECTION 302/304 This product does not contain ingredients listed as an Extremely Hazardous Substance. SECTION 311/312 Immediate, Fire, Delayed SECTION 313 This product does contain ingredients (at a level of 1 % or greater) on the List of Toxic Chemicals: Methanol 67-56-1 <90% XLW-32 -USA- Revised 11/06/2006/Page 4 UNCONTROLLED WHEN PRINTED ~ ~ OTHER REGULATORY INFORMATION TSCA INVENTORY: All of the components in this appear on the TSCA inventory. CALIFORNIA PROP 65: None of the chemicals on the current Proposition 65 list are known to be present in this product. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. XLW-32 -USA- Revised 11/06/2006/Page 5 UNCONTROLLED WHEN PRINTED ~ BJ SERVICES COMPANY Region USA MATERIAL SAFETY DATA SHEET 1 PRODUCT AND COMPANY IDENTIFICATION Product Name: BC-3 Item Number: 488187 Product Use: Breaker catalyst Supplier: BJ Services Company 11211 FM 2920 Tomball, Texas 77375 (281)351-8131 IN CASE OF EMERGENCY CALL: (800) 424-9300 for CHEMTREC (703) 527-3887 for International HMIS HAZARD INDEX HEALTH: 1 FLAMMABILITY: 1 REACTIVITY: 0 PERSONAL PROTECTION: g 2 COMPOSITION/INFORMATION ON INGREDIENTS Non-hazardous Ingredient _. __ Non-hazardous 1100 _ _ _.. 3 HAZARDS IDENTIFICATION PRIMARY ROUTES OF EXPOSURE: Inhalation. Eye contact. Skin contact. ACUTE OVEREXPOSURE EFFECTS: INHALATION: May be harmful if inhaled. Exposure to high vapor/mist concentrations may cause respiratory tract irritation. INGESTION: Not a likely exposure route. EYE CONTACT: May cause mild eye irritation. SKIN CONTACT: May cause mild skin irritation. EXPOSURE LIMITS: _ _ _ Non-hazardous __ 4 FIRST AID MEASURES INHALATION: BC-3 -USA- Revised 11/04/2008/Page 1 UNCONTROLLED WHEN PRINTED • • If inhaled, remove from area to fresh air. Get medical attention if respiratory irritation develops or if breathing becomes difficult. INGESTION: Rinse mouth out with water. Drink plenty of water. If large quantities were ingested, seek medical advice. EYES: In case of contact, immediately flush eyes with plenty of water for at least 15 minutes and get medical attention if irritation persists. SKIN: Wash with soap and water. Remove contaminated clothing and launder before reuse. Get medical attention if irritation persists. 5 FIRE FIGHTING MEASURES FLASHPOINT (METHOD): 370°F (COC) LOWER EXPLOSION LIMIT (% v/v): Not available UPPER EXPLOSION LIMIT (% v/v): Not available AUTO-IGNITION TEMPERATURE: Not available SPECIAL HAZARDS: Product will burn in fire situation. EXTINGUISHING MEDIA: Water fog, carbon dioxide, foam, dry chemical. SPECIAL FIREFIGHTING PROCEDURES: Fire-fighters should wear self-contained breathing apparatus and full protective clothing when fighting chemical fires. Cool exposed containers with water spray. HAZARDOUS COMBUSTION PRODUCTS: Oxides of carbon. 6 ACCIDENTAL RELEASE MEASURES Wear specified protective equipment. Small spills -Cover spill with absorbent material. Scoop absorbed material into a suitable container for disposal. Large spills -Dike to contain. Prevent from entering sewers or waterways. Recover product to suitable containers or vessel for reuse, if possible, or for disposal. 7 HANDLING AND STORAGE HANDLING: Wear specified protective equipment. Use only in a well ventilated area. STORAGE REQUIREMENTS: Keep container tightly closed, in a cool, well ventilated place. 8 EXPOSURE CONTROLS/PERSONAL PROTECTION SPECIFIC ENGINEERING CONTROLS: Use only in a well ventilated area. PERSONAL PROTECTIVE EQUIPMENT: Appropriate respiratory protection shall be worn when applied engineering controls are not adequate to protect against inhalation exposure. Chemical resistant goggles. Rubber gloves. Neoprene gloves. Coveralls. 9 PHYSICAL AND CHEMICAL PROPERTIES PHYSICAL STATE: COLOR: ODOR: ODOR THRESHOLD: SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air = 1): EVAPORATION RATE: BOILING POINT: Liquid Clear Essentially None Not available 1.1 @ 77°F < 1 mm Hg @ 25°C/77°F 11.1 < 1 (n-butyl acetate=1) 297°C/567°F BC-3 -USA- Revised 11/04/2008/Page 2 UNCONTROLLED WHEN PRINTED • FREEZING POINT: -42°C/-45°F pH: Not available VISCOSITY (F): Not available SOLUBILITY IN WATER: Negligible 10 STABILITY AND REACTIVITY STABILITY: Stable under normal conditions of use. INCOMPATIBILITY/CONDITIONS OF REACTIVITY: Strong oxidizers. HAZARDOUS THERMAL DECOMPOSITION PRODUCTS: Carbon monoxide. Carbon dioxide. HAZARDOUS POLYMERIZATION: Will not occur. 11 TOXICOLOGICAL PROPERTIES CHRONIC EFFECTS: Not determined. SENSITIZATION: Not known. CARCINOGENICITY: None of the components of this product have been listed as carcinogenic by IARC, NTP or OSHA. (IARC- International Agency for Research on Cancer) (NTP -National Toxicology Program) (OSHA -Occupational Safety & Health Administration (US)). MUTAGENICITY: Not known. REPRODUCTIVE TOXICITY: Not known. 12 ECOLOGICAL INFORMATION No specific information available. 13 DISPOSAL CONSIDERATIONS WASTE DISPOSAL: Disposal should be made in accordance with national and local regulations. Consult local waste authorities for direction and/or approvals prior to disposal. 14 TRANSPORT INFORMATION LAND TRANSPORT (DOT) Proper Shipping Name: Hazard Class -Primary: UN/ID No.: Packing Group: Subsidiary Risk: Reportable Quantity (RQ): Emergency Response Guide #: NOT RESTRICTED NA AIR TRANSPORT (ICAO/IATA) Proper Shipping Name: NOT RESTRICTED Hazard Class -Primary: UN/ID No.: NA BC-3 -USA- Revised 11/04/2008/Page 3 UNCONTROLLED WHEN PRINTED • Packing Group: MARINE TRANSPORT (IMDG/IMO) Proper Shipping Name: NOT RESTRICTED Hazard Class -Primary: Packing Group: EmS: 15 REGULATORY INFORMATION SARA TITLE Ili: SECTION 302/304 This product does not contain substances listed in Appendix A and B as an Extremely Hazardous Substance. SECTION 311/312 Immediate SECTION 313 This product does not contain ingredients (at a level of 1% or greater) on the List of Toxic Chemicals. TSCA INVENTORY: The substances in this product are included on or exempted from the TSCA 8(b) Inventory (40 CFR 710). CALIFORNIA PROP 65: None of the chemicals on the current Proposition 65 list are known to be present in this product. PRIORITY POLLUTANTS: 16 OTHER INFORMATION ISSUE DATE: 11/04/2008 PREPARED BY: BJ Services Environmental Group REFERENCES: Supplier's Literature. CCINFO Web Information Service, Canadian Centre for Occupational Health and Safety, 2007. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. BC-3 -USA- Revised 11/04/2008/Page 4 UNCONTROLLED WHEN PRINTED • ~ BJ SERVICES COMPANY Region USA MATERIAL SAFETY DATA SHEET SECTION I -GENERAL INFORMATION PRODUCT NAME: ITEM NUMBER: CHEMICAL DESCRIPTION: PRODUCT USE: SUPPLIER: ADDRESS: EMERGENCY TELEPHONE NUMBER PREPARED BY: DATE PREPARED: Flo-Back 30 488255, 488327 Surfactant Surface tension reducer, surfactant BJ Services Company 11211 FM 2920 Tomball, TX 77375 (800)424-9300 for CHEMTREC (703)527-3887 Alaska and International BJ Services Environmental Group (281)351-8131 April 30, 2004 Supersedes: August 31, 2000 HMIS HAZARD INDEX HEALTH: 1 FLAMMABILITY: 0 REACTIVITY: 0 PERSONAL PROTECTION: b SECTION II -HAZARDOUS COMPONENTS HAZARDOUS COMPONENTS CAS # PERCENT HAZARD No hazardous ingredients N.A. N.A. N.A. SECTION 111 -FIRE AND EXPLOSION HAZARD DATA FLASHPOINT (METHOD): UPPER EXPLOSION LIMIT(% BY VOL): LOWER EXPLOSION LIMIT(% BY VOL) AUTO-IGNITION TEMPERATURE: EXTINGUISHING MEDIA: SPECIAL FIRE FIGHTING PROCEDURES: EXPLOSION DATA: HAZARDOUS COMBUSTION PRODUCTS: None N.E. N.E. N.E. This product is not expected to burn unless all the water is boiled away. Use media appropriate for surrounding fire. Use water to cool fire exposed containers. None Carbon monoxide during combustion Flo-Back 30 -USA- Revised 10/06/2006/Page 1 UNCONTROLLED WHEN PRINTED • SECTION IV -HEALTH HAZARD DATA PRIMARY ROUTES OF ENTRY: Skin and eye contact ACUTE OVEREXPOSURE EFFECTS: • SKIN CONTACT: Brief contact may cause mild irritation. Prolonged contact may cause severe irritation and dermatitis. SKIN ABSORPTION: Not absorbed by skin. EYE CONTACT: May cause slight to moderate irritation. INHALATION: Not expected to pose an inhalation hazard. INGESTION: May cause irritation to the membranes of the mouth, throat, and gastrointestional tract. Nausea, vomiting, cramps and diarrhea may occur. CHRONIC OVEREXPOSURE EFFECTS: None known EXPOSURE LIMITS: HAZARDOUS COMPONENT ACGIH TLV OSHA PEL No hazardous ingredients N.E. N.E. CARCINOGENICITY, REPRODUCTIVE EFFECTS: Not listed as carcinogenic - IARC, NTP, or OSHA TERATOGENICITY, MUTAGENICITY: No effects listed. TOXICITY STUDIES: LD(50) N.E. LC(50) N.E. SECTION V -FIRST AID PROCEDURES FOR EYES: Immediately flush with plenty of water for at least 15 minutes. If irritation persists, contact a physician. FOR SKIN: Flush skin with water or wash with mild soap and water if available. If irritation persists, contact a physician. FOR INHALATION: Remove to fresh air. If breathing has stopped, give artificial respiration. Keep person warm, quiet and get medical attention. FOR INGESTION: Do not induce vomiting. If vomiting occurs spontaneously, keep victim's head below hips to prevent aspiration into the lungs. Give large quantities of water to dilute. Never give anything by mouth to an unconscious or convulsing person. Seek immediate medical attention. SECTION VI -PHYSICAL DATA APPEARANCE AND ODOR: Pale yellow liquid with mild odor SPECIFIC GRAVITY: 1.16 VAPOR PRESSURE: N.E. Flo-Back 30 -USA- Revised 10/06/2006/Page 2 UNCONTROLLED WHEN PRINTED VAPOR DENSITY (air-1): N.E. EVAPORATION RATE: N.E. BOILING POINT: Approx. 235°F FREEZING POINT: < 0°F SOLUBILITY IN H2O: Complete pH: N.E. SECTION VII -REACTIVITY DATA CHEMICAL STABILITY: Stable INCOMPATIBLE MATERIALS: Strong oxidizing agents HAZARDOUS POLYMERIZATION: Does not polymerize HAZARDOUS DECOMPOSITION PRODUCTS: Carbon monoxide during combustion SECTION VIII -SPECIAL/PERSONAL PROTECTION VENTILATION: The use of mechanical ventilation is recommended whenever this product is used in a confined space. Where engineering controls are not feasible, assure use is in an area where there is natural air movement. RESPIRATORY PROTECTION: Not normally required under conditions of normal use. PROTECTIVE GLOVES: Rubber or neoprene EYE PROTECTION: Goggles OTHER PROTECTIVE EQUIPMENT: Eyewash bottles or other rinsing equipment should be easily accessible. SECTION IX -HANDLING PRECAUTIONS LEAK AND SPILL PROCEDURES: Dike or contain spill to prevent material from entering waterways. Pump large spills into salvage containers. Soak up residue or small spills with absorbent pads, clay, or dirt and place in salvage containers. WASTE DISPOSAL: If this product becomes a waste it does not meet the requirements of a RCRA hazardous waste. Always dispose of according to local/state/federal regulations. HANDLING & SPECIAL EQUIPMENT: Do not get in eyes, on skin or clothing. Do not take internally. STORAGE REQUIREMENTS: Keep container closed when not in use. Store drums with the bung up. Carefully vent container before removing bung. Wash thoroughly after handling. SECTION X -REGULATORY INFORMATION SHIPPING INFORMATION PROPER SHIPPING NAME: HAZARD CLASS: UN/NA NUMBER: PACKING GROUP W/ "PG": SUBSIDIARY RISK: REPORTABLE QUANTITY (RQ): EMERGENCY RESPONSE GUIDE #: Not DOT Regulated N.A. N.A. N.A. N.A. N.A. N.A. Flo-Back 30 -USA- Revised 10/06/2006/Page 3 UNCONTROLLED WHEN PRINTED • ENVIRONMENTAL INFORMATION SARA TITLE III SECTION 302/304 This product does not contain ingredients listed as an Extremely Hazardous Substance. SECTION 311/312 N.A. SECTION 313 This product does not contain ingredients (at a level of 1 % or greater) on the List of Toxic Chemicals. OTHER REGULATORY INFORMATION TSCA INVENTORY: All of the components in this appear on the TSCA inventory. CALIFORNIA PROP 65: None of the chemicals on the current Proposition 65 list are known to be present in this product. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. Flo-Back 30 -USA- Revised 10/06/2006/Page 4 UNCONTROLLED WHEN PRINTED • ~~ Balser Petrolite Material Safety Data Sheet Section 1. Chemical Product and Company Identification Product Name X-CIDE® 207 INDUSTRIAL MICROBIOCIDE Code XC207 Supplier Baker Petrolite Version 2.0 A Baker Hughes Company 12645 W. Airport Blvd. (77478) P.O. Box 5050 Sugar Land, TX 77487-5050 For Product Information/MSDSs Call: 800-231-3606 8:00 a.m. - 5:00 .m. cst, Monda - Frida 281-276-5400 Material Uses Microbiocide Effective Date 7/16/2003 24 Hour Emergency CHEMTREC 800-424-9300 (U.S. 24 hour) Print Date 7/16/2003 Numbers Baker Petrolite 800-231-3606 (North America 24 hour) CANUTEC 613-996-6666 (Canada 24 hours) CHEMTREC Int'I 01-703-527-3887 (International 24 hour) National Fire Protection Flammability Association (U.S.A.) 1 Health 3 Q Reactivity COR Specific Hazard Section 2. Composition and Information on Ingredients Name CAS # % by Weight Exposure Limits 1) 5-chloro-2-methyl-4-isothiazolin-3-one 26172-55-4 5-10 TWA: 0.076 STEL: 0.23 (mg/m3) from Manufacturer. 2) 2-Methyl-4-isothiazolin-3-one 2682-20-4 1-5 TWA: 1.5 STEL: 4.5 (mg/m3) from Manufacturer. 3) Magnesium nitrate 10377-60-3 5-10 Not available. 4) Magnesium chloride 7786-30-3 1-5 Not available. 5) Diatomaceous earth, calcined 91053-39-3 30-60 TWA: 10 (mg/m3) from ACGIH (TLV) TWA: 3 (mg/m 3) from ACGIH (TLV) Respirable. TWA: 15 (mg/m 3) from OSHA (PEL) Total. TWA: 5 (mg/m 3) from OSHA (PEL) Respirable. 6) Crystalline silica: cristobalite 14464-46-1 0.1-1 TWA: 0.05 (mg/m 3) from ACGIH (TLV) Respirable. TWA: 0.05 (mg/m 3) from OSHA (PEL) Respirable. 7) Crystalline silica: Quartz (SiO2) 14808-60-7 0.1-1 TWA: 0.05 (mg/m3) from ACGIH (TLV) Respirable. TWA: 0.1 (mg/m 3) from OSHA Respirable. The OSHA Exposure Limit for cristobalite has been revoked. The OSHA Exposure Limit for quartz has been revoked. Section 3. Hazards Identification Physical State and A earance State: Granular. Solid., Color: Tan. Red., Odor: Mild. CERCLA Reportable Quantit Not applicable. Hazard Summary DANGER. May cause chronic effects. May be corrosive to eyes, skin and respiratory tract. Contains a component that may cause cancer. May cause skin sensitization (allergic reaction). Routes of Exposure Skin (Contact), Eyes, Inhalation. Potential Acute Health Effects Continued an Next Page • • X-CIDEO 207 INDUSTRIAL MICROBIOCID~ Page: 2/7 Eyes May be corrosive to the eyes. May cause eye burns and permanent eye injury. Skin May be corrosive. Skin contact may produce burns. Skin sensitizer. May cause allergic skin reactions with repeated exposure Inhalation May be irritating to lungs. Ingestion Not considered a likely route of exposure, however, may be corrosive if swallowed. Medical Conditions Exposure to this product may aggravate medical conditions involving the following: respiratory tract, aggravated by Exposure skin/epithelium, eyes. See Toxicological Information (section 11) Additional Hazard Not available. Identification Remarks Section 4. First Aid Measures Eye Contact Immediately flush eyes with plenty of water for at least 15 minutes, occasionally lifting the upper and lower eyelids. Get medical attention if irritation occurs. Skin Contact Remove contaminated clothing and shoes immediately. Wash affected area with soap and mild detergent and large amounts of water until no evidence of chemical remains (approximately 15-20 minutes). Get medical attention immediately. Inhalation Remove to fresh air. Oxygen may be administered if breathing is difficult. If not breathing, administer artificial respiration and seek medical attention. Get medical attention if symptoms appear. Ingestion Get medical attention immediately. If swallowed, do not induce vomiting unless directed to do so by medical personnel. Wash out mouth with water if person is conscious. Never induce vomiting or give an thin b mouth to a victim who is unconscious or havin convulsions. Notes to Physician Not available. Additional First Aid Not available. Remarks Section 5. Fire Fighting Measures Flammability of the ProducNot regulated as flammable or combustible. OSHA Flammability Class Not available. Autoighition temperature Not available. Flash Points CLOSED CUP: Higher than 93.3°C (200°F).(SFCC) Flammable Limits L.E.L. Not available. U.E.L. Not available. Products of Combustion These products are carbon oxides (CO, C02) Hydrogen chloride fumes. nitrogen oxides (NO, N02...) Oxides of silicon. Sulfur oxides (S02, S03...) Oxides of magnesium. Aluminum oxides (AIOx) Oxides of iron.. Fire Hazards in Presence ofOpen Flames/Sparks/Static. Heat. Various Substances Fire Fighting Media In case of fire, use foam, dry chemicals, or C02 fire extinguishers. Evacuate area and fight fire from a and Instructions safe distance. Water spray may be used to keep fire-exposed containers cool. Keep water run off out of sewers and ublic water wa s. Protective Clothing (Fire) Do not enter fire area without proper personal protective equipment, including NIOSH approved self-contained breathin a aratus. Special Remarks on Fire Avoid temperature extremes. During a fire, irritating and highly toxic gases may be generated by thermal Hazards decomposition or combustion. Hazardous combustion products may include hydrogen chloride, carbon monoxide, carbon dioxide and oxides of nitrogen and sulfur. Continued on Next Page ~~ X-C/DE® 207 INDUSTRIAL M/CROBIOCID~ Page` 3/7 Section 6. Accidental Release Measures Spill Put on appropriate personal protective equipment. Evacuate surrounding areas, if necessary. Vacuum or carefully scoop up spilled materials and place in an appropriate container for disposal. Waste must be disposed of in accordance with federal, state and local environmental control regulations. ~ Other Statements Not applicable. ~ Additional Accidental Not available. Release Measures Remarks Section 7. Handling and Storage Handling and Storage Put on appropriate personal protective equipment. Avoid contact with eyes, skin, and clothing. Avoid breathing vapors or dusts. Use only with adequate ventilation. Store in a dry, cool and well ventilated area. Keeo awav from incompatibles. Keep container tightly closed and drv. Additional Handling and Not available. Storage Remarks Section S. Exposure Controls/Personal Protection Engineering Controls Provide exhaust ventilation or other engineering controls to keep the airborne concentrations of vapors or particles below their respective threshold limit value. Ensure that eyewash stations and safety showers are proximal to the work-station location. Personal Protection Personal Protective Equipment recommendations are based on anticipated known manufacturing and use conditions. These conditions are expected to result in only incidental exposure. A thorough review of the job tasks and conditions by a safety professional is recommended to determine the level of personal protective equipment appropriate for these job tasks and conditions. Eyes Chemical safety goggles. Use full face shield if splashes could occur. Body Wear long sleeves and chemical resistant apron to prevent repeated or prolonged skin contact. Respiratory Respirator use is not expected to be necessary under normal conditions of use. In poorly ventilated areas, emergency situations or if exposure levels are exceeded, use NIOSH approved full face respirator. Hands Chemical resistant gloves. Feei Chemical resistant boots or overshoes. Other informatior Nitrite gloves. Butyl rubber gloves. Protective Clothing (Pictograms) ,~' .~ Additional Exposure Contr Substance may be harmful if swallowed. In extreme cases (ingestion) may cause liver and/or kidney Remarks damage. Section 9. Typical Physical and Chemical Properties Physical State and Granular. Solid. Appearance Odor Mild. pH Not available. Color Tan. Red. Specific gravity Not available. Density Not available. Vapor Density >1 (Air = 1) Continued on Next Page C~ X-CIDE® 2071NDUSTRIAL MlCR0810CID, Page: 4/7 Vapor Pressure Not Available or Not Applicable for Solids. Evaporation Rate Not Available or Not Applicable for Solids. VOC Not available. Viscosity Not available. Pour Point Not available. Solubility (Water) Dispersible Boiling Point Not available. Physical Chemical Comments Bulk Density: 48.52 Ib/cu. ft. (6.49 Ib/gal or 0.7773 g/mL) `Section 10. Stability and Reactivity Stability and Reactivity The product is stable. Conditions of Instability Not available. Incompatibility with Variou~Jxidizing material. Substances Hazardous Decomposition Not applicable. Products Hazardous Polymerization Hazardous polymerization is not expected to occur. Special Stability t;< Not available. Reactivity Remarks Section 11. Toxicological Information Component Toxicological Information Acute Animal Toxicity 1) 5-chloro-2-methyl-4-isothiazolin-3-one Not available. 2) 2-Methyl-4-isothiazolin-3-one Not available. 3) Magnesium nitrate ORAL (LD50): Acute: 500 to 5000 mg/kg (Human]. 4) Magnesium chloride ORAL (LD50): Acute: 4700 mg/kg [Mouse]. 2800 mg/kg [Rat]. 5) Diatomaceous earth, calcined Not available. 6) Crystalline silica: cristobalite Not available. 7) Crystalline silica: Quartz (Si02) Not available. Chronic Toxicity Data 1) 5-chloro-2-methyl-4-isothiazolin-3-one Not available. 2) 2-Methyl-4-isothiazolin-3-one Not available. 3) Magnesium nitrate Repeated small oral doses of nitrate may cause weakness, depression, headache and mental impairment. Magnesium nitrate is a methemoglobin-forming agent, chronic exposure may effect the ability of the blood carry oxygen causing the lips and skin to turn blue. Magnesium nitrate has not been evaluated for its carcinogenicity in humans or animals. Generally, nitrates can be reduced to nitrites, under anaerobic conditions (without oxygen), and nitrites can react with amines to form carcinogenic N-nitrosamines (Reprotext). 4) Magnesium chloride Continued on Next Page • C~ X-C1DE® 2071NDUSTRIAt MICROBIOCID, Page: 5/7 Magnesium chloride is a component of this product. Magnesium chloride has caused chromosome abberrations in human cells, but was not mutagenic in mouse or hamster cells. Magnesium chloride was inactive for inducing DNA damage in the B. subtillis rec assay. (Micromedex) 5) Diatomaceous earth, calcined Not available. 6) Crystalline silica: cristobalite Silica crystalline as cristobalite is a component of this product. cristobalite is listed by NTP as a suspect carcinogen, by OSHA as a possible carcinogen, and by IARC as a possible carcinogen. Silica exists in several forms, but only the crystalline materials produce the chronic pulmonary condition termed specifically silicosis. Chronic inhalation of airborne crystalline silica dust may lead to fibrotic lung disease, silicosis or cancer (based on animal studies and limited evidence of carcinogenicity in humans). An inhalation study in humans at a dose of 16 mppcf/8H/17.9Y intermittent produced toxic effects to the lungs, thorax, or respiration resulting in fibrosis, focal (pneumoconiosis), cough and dyspnea (RTECS). An intratracheal (inside the airway tube between the voice box and chest cavity) dose of 200 mg/kg in rats produced lung, thorax, or respiration effects resulting in fibrosis, focal (pneumoconiosis).(RTECS) An intrapleural (inside the membrane lining of the lung cavity) dose of 90, and 100 mg/kg in rats produced tumors, and blood lymphomas (malignant but treatable cancer) including Hodgkin's disease (a type of lymphoma cancer). (RTECS) 7) Crystalline silica: Quartz (Si02) Crystalline silica as quartz is a component of this product. Prolonged inhalation of respirable crystalline quartz may cause delayed chronic lung injury -silicosis. Silicosis is a form of disabling pulmonary fibrosis which can be progressive and may lead to death. Silicosis may progress without further exposure to silica (Hathaway et al, 1991). Chronic inhalation of silica dust suppressed the immune response in mice (Scheuchenzuber et al, 1985), and a decreased immune response has also been shown in silicotics (Barlogova et al, 1981). The effect of silica on the immune mechanism may be mediated by its toxicity to pulmonary macrophages, a critical component of the immune response, and may have implications for the increased susceptibility of silicotics to respiratory infections, particularly tuberculosis. Inhaled crystalline silica particles induced several signs of pulmonary injury and inflammation in rats exposed to an airborne concentration of 50 mg/m3 for 6 hours per day for 5 days (Driscoll et al, 1991). IARC (International Agency for Research on Cancer) rates crystalline silica as a "Probable Human Carcinogen" (Group 2A). The US NTP (National Toxicology Program) rates respirable crystalline silica as an "Anticipated Carcinogen". Silica has been inactive for inducing DNA damage in the B. subtilis rec assay (Kanematsu et al, 1980), chromosome damage or sister chromatid exchanges in hamster cells (Price-Jones et al, 1980), chromosome damage in human cells (Oshimura et al, 1984), in vitro oncogenic transformation of hamster cells into cancer cells (Oshimura et al, 1984), and induction of micronuclei in mouse bone marrow (Vanchugova et al, 1985). Crystalline silica has caused DNA strand breaks in vitro; etching the surface with hydrofluoric acid reduced this activity. At the time of this review, no reproductive studies were found for silica in humans. Few reproductive data are available for silica. As a component of welding fume, it caused infertility and fetal death in rats (Dabrowski et al, 1966). Intratracheal instillation of silica prolonged the estrus cycle in rats (Parsadanian, 1967). So-called "soluble silica" was tested for reproductive effects in rats, but the results were not available at the time of this review (Smith et al, 1973). Product Toxicological Information Acute Animal Toxicity DERMAL (LD50): Acute: >5000 mg/kg [Rabbit]. Target Organs respiratory tract, skin/epithelium, eyes. Other Adverse Effects Eye Irritation Score = 4 (Extreme Irritant/Corrosive). Skin Irritation Score = 4 (Extreme Irritant/Corrosive). Prolonged exposure to silica may cause a lung disease called silicosis. Symptoms of silicosis include gin in the chest, cou hin and tirin after sli ht excursions. Section 12. Ecological Information Ecotoxicity Ecotoxicity in water (LC50): 9.2 mg/I 96 hours [Sheepshead minnow]. BODS and COD Not available. Biodegradable/DECD Not available. Toxicity of the Products of Not available. Biode radation Continued on Next Page X-CIDE® 207 INDUSTRIAL`MICROBIOCID, Page: 6/7 Special Remarks An EcoToxT"" Report, and/or the material's environmental fate is available upon request at the following number: 1-800-235-4249, then press 4. Section 13. Disposal Considerations Responsibility for proper waste disposal rests with the generator of the waste. Dispose of any waste material in accordance with all applicable federal, state and local regulations. Note that these regulations may also apply to empty containers, liners and rinsate. Processing, use, dilution or contamination of this product may cause its physical and chemical properties to change. 'Additional Waste Remarks Not available. I Section 14. Transport lnformation DOT Classification Corrosive solid, acidic, organic, n.o.s., (contains 5-chloro-2-methyl-4-isothiazolin-3-one, 2-Methyl-isothiazolin-3-one), 8, UN3261, II v a ~~ DOT Reportable Quantity Not applicable. Marine Pollutant Not applicable. Additional DOT informationNot available. Emergency Response Guic 154 Page Number Section 15. Regulatory lnformation HCS Classification Target Organ Effects. Corrosive. Sensitizer. Contains a component that may cause cancer.. U.S. Federal Regulations Environmental Extremely Hazardous Substances: Not applicable to any components in this product. Regulations SARA 313 Toxic Chemical Notification and Release Reporting: Not applicable to any components in this product. SARA 302/304 Emergency Planning and Notification substances: Not applicable to any components in this product. Hazardous Substances (CERCLA 302): Not applicable to any components in this product. SARA 311/312 MSDS distribution -chemical inventory -hazard identification: immediate health hazard; delayed health hazard; Clean Water Act (CWA) 307 Priority Pollutants: Not applicable to any components in this product. Clean Water Act (CWA) 311 Hazardous Substances: Not applicable to any components in this product. Clean Air Act (CAA) 112(r) Accidental Release Prevention Substances: Not applicable to any components in this product. Threshold Planning Not applicable. Quantity (TPQ) TSCA Inventory All components are included or are exempted from listing on the US Toxic Substances Control Act Status Inventory. This product contains the following components that are subject to the reporting requirements of TSCA Section 12(b) if exported from the United States: 5-chloro-2-methyl-4-isothiazolin-3-one; 2-Methyl-4-isothiazolin-3-one. State Regulations State specific information is available upon request from Baker Petrolite. International Regulations Canada All components are compliant with or are exempted from listing on the Canadian Domestic Substance List. WHMIS (Canada) D-2A, E European Union All components are included or are exempted from listing on the European Inventory of Existing Commercial Chemical Substances or the Euro can List of Notified Chemical Substances. Continued on Next Page • U X-CIDEO 2071NDUSTRIAL MICROBIOCID~ Page: 7/7 International inventory status information is available upon request from Baker Petrolite for the following countries: Australia, and Australia (NICNAS), China, Korea (TCCL), Philippines (RA6969), or Japan. Harmonized Tariff Code 3808.90.30.00 Other Regulatory This product is subject to regulation under the US Federal Insecticide, Fungicide and Rodenticide ACT Information (FIFRA) and is therefore exempt from US Toxic Substance Control Act (TSCA) Inventory listing requirements. EPA Registration No. 10707-44. Offshore Chemical Notification Scheme (OCNS) rating: Group A O-VII Section 16. Other Information Other Special File 59 Considerations 07/16/03 - Change to Section 15. Baker Petrolite Disclaimer NOTE: The information on this MSDS is based on data which is considered to be accurate. Baker Petrolite, however, makes no guarantees or warranty, either expressed or implied of the accuracy or completeness of this information. The conditions or methods of handling, storage, use and disposal of the product are beyond our control and maybe beyond our knowledge. For this and other reasons, we do not assume responsibility and expressly disclaim liability for loss, damage or expense arising out of or in any way connected with the handling, storage, use or disposal of this product. This MSDS was prepared and is to be used for this product. If the product is used as a component in another product, this MSDS information may not be applicable. BJ SERVICES COMPANY MATERIAL SAFETY DATA SHEET SECTION I -GENERAL INFORMATION PRODUCT NAME: ITEM NUMBER CHEMICAL DESCRIPTION: PRODUCT USE: SUPPLIER: ADDRESS: EMERGENCY TELEPHONE NUMBER PREPARED BY: DATE PREPARED: FRW-14 Region USA 499514, 424227, 488226 A polyacrylamide in a hydrocarbon solvent/water emulsion Friction reducer BJ Services Company 11211 FM 2920 Tomball, TX 77375 (800)424-9300 for CHEMTREC (202)483-7616 Alaska and International BJ Services Environmental Group (281)351-8131 August 31, 2000 Supersedes: April,1994 HMIS HAZARD INDEX HEALTH: 1 FLAMMABILITY: 1 REACTIVITY: 0 PERSONAL PROTECTION: g SECTION II -HAZARDOUS COMPONENTS HAZARDOUS COMPONENTS CAS # PERCENT HAZARD Hydrotreated light distillate 64742-47-8 20-40 Irritant Ethoxylated alcohol 68439-50-9 1-5 Skin irritant SECTION III -FIRE AND EXPLOSION HAZARD DATA FLASHPOINT (METHOD): UPPER EXPLOSION LIMIT(% BY VOL): LOWER EXPLOSION LIMIT(% BY VOL) AUTO-IGNITION TEMPERATURE: EXTINGUISHING MEDIA: SPECIAL FIRE FIGHTING PROCEDURES: EXPLOSION DATA: HAZARDOUS COMBUSTION PRODUCTS >200°F (PMCC) N.E. N.E. N.E. Dry chemical, C02, foam. Use water to cool containers exposed to fire. Large fires, use water spray or fog to thoroughly drench burning material. May evolve oxides of nitrogen under fire conditions. If the water is driven off, the remaining organics may be ignitable. None Oxides of nitrogen. SECTION IV -HEALTH HAZARD DATA L~ PRIMARY ROUTES OF ENTRY Skin and eye contact ACUTE OVEREXPOSURE EFFECTS: SKIN CONTACT: Can cause mild short lasting irritation. SKIN ABSORPTION: Not absorbed by skin. EYE CONTACT: Can cause moderate irritation INHALATION: Not expected to be a route of entry INGESTION: Can cause central nervous system depression, nausea, dizziness, vomiting or unconsciousness depending on the length of exposure and on the first aid action given. CHRONIC OVEREXPOSURE EFFECTS: None known EXPOSURE LIMITS: HAZARDOUS COMPONENT ACGIH TLV Hydrotreated light distillate 5 mg/m3 (oil mist) Ethoxylated alcohol N.E. CARCINOGENICITY, REPRODUCTIVE EFFECTS: Not listed as carcinogen - IARC, NTP, or OSHA TERATOGENICITY, MUTAGENICITY: No effects listed. TOXICITY STUDIES: LD(50) N.E. LC(50) N.E. SECTION V -FIRST AID PROCEDURES OSHA PEL N.E. N.E. FOR EYES: Flush with water for 15 minutes. Call a physician. FOR SKIN: Wash thoroughly with soap and rinse with water. Call a physician. FOR INHALATION: Remove to fresh air. Treat symptoms. Call a physician. FOR INGESTION: Do not induce vomiting. Give water. Call a physician. NOTE TO PHYSICIAN: No specific antidote is known. Based on the individual reactions of the patient, the physician's judgment should be used to control symptoms and clinical condition. SECTION VI -PHYSICAL DATA APPEARANCE AND ODOR: SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air=1): EVAPORATION RATE: BOILING POINT: FREEZING POINT: SOLUBILITY IN H2O: pH: Off white, opaque liquid with hydrocarbon odor 1.04-1.08 @ 75°F N.E. N.E. N.E. N.E. N.E. N.E. 7 (1% solution) SECTION VII -REACTIVITY DATA CHEMICAL STABILITY: Stable INCOMPATIBLE MATERIALS: Avoid contact with strong oxidizers (chlorine, peroxides, chromates, nitric acid, perchlorates, concentrated oxygen, permanganates) which can generate heat, fires, explosions and release of toxic fumes. HAZARDOUS POLYMERIZATION: Does not polymerize HAZARDOUS DECOMPOSITION PRODUCTS: Carbon monoxide, carbon dioxide, oxides of nitrogen. SECTION VIII -SPECIAL/PERSONAL PROTECTION VENTILATION: The use of mechanical ventilation is recommended whenever this product is used in a confined space. Where engineering controls are not feasible, assure use is in an area where there is natural air movement. RESPIRATORY PROTECTION: Not normally needed PROTECTIVE GLOVES: Rubber or neoprene EYE PROTECTION: Goggles OTHER PROTECTIVE EQUIPMENT: Eyewash bottles or other rinsing equipment should be easily accessible. SECTION IX -HANDLING PRECAUTIONS LEAK AND SPILL PROCEDURES: Dike or contain spill to prevent material from entering waterways. Pump large spills into salvage containers. Soak up residue or small spills with absorbent pads, clay, or dirt and place in salvage containers. WASTE DISPOSAL: If this product becomes a waste it does not meet the requirements of a RCRA hazardous waste. Always dispose of according to local/state/federal regulations. HANDLING & SPECIAL EQUIPMENT: Avoid contact with eyes, skin and clothing. If clothing is contaminated, remove and thoroughly wash the affected area. Launder contaminated clothing before reuse. STORAGE REQUIREMENTS: None SECTION X -REGULATORY INFORMATION SHIPPING INFORMATION PROPER SHIPPING NAME: HAZARD CLASS: UN/NA NUMBER: PACKING GROUP W/ "PG": SUBSIDIARY RISK: REPORTABLE QUANTITY (RQ): EMERGENCY RESPONSE GUIDE #: ENVIRONMENTAL INFORMATION SARA TITLE III SECTION 302/304 SECTION 311/312 Not DOT Regulated N.A. N.A. N.A. N.A. N.A. N.A. This product does not contain ingredients listed as an Extremely Hazardous Substance. Immediate • SECTION 313 This product does not contain ingredients (at a level of 1% or greater) on the List of Toxic Chemicals. OTHER REGULATORY INFORMATION TSCA INVENTORY: All of the components in this appear on the TSCA inventory. CALIFORNIA PROP 65: None of the chemicals on the current Proposition 65 list are known to be present in this product. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. Revision: 3 Revision History: Revision: Sec/Para Changed 1 N/A 2 I 3 I Name: Sue Brusenhan Title: HSE Specialist Name: Title: Status: Approved & Released MSDS Change Made: Date Initial Issue of Document Today Telephone number 08/31/00 Address Change 10/06/06 Approved - 11/21/2006 by Sue Brusenhan Author changed from to Sue Brusenhan -- 10/06/2006 MSDS revised by Sue Brusenhan -- 10/06/2006 Revised by Sue Brusenhan -- 10/06/2006 MSDS submitted for Final Approval by Sue Brusenhan -- 10/06/2006 Final Approval by Sue Brusenhan -- 10/06/2006 Revised by Sue Brusenhan -- 11/21/2006 MSDS submitted for Final Approval by Sue Brusenhan -- 11/21/2006 Final Approval by Sue Brusenhan -- 11/21/2006 s • BJ SERVICES COMPANY MATERIAL SAFETY DATA SHEET 1 PRODUCT AND COMPANY IDENTIFICATION Product Name: FRW-16 Item Number: 424229 Product Use: Friction reducer Supplier: BJ Services Company 11211 FM 2920 Tomball, Texas 77375 (281)351-8131 IN CASE OF EMERGENCY CALL: (800) 424-9300 for CHEMTREC (703) 527-3887 for International HMIS HAZARD INDEX HEALTH: 2 FLAMMABILITY: 1 REACTIVITY: 0 PERSONAL PROTECTION: g 2 COMPOSITION/INFORMATION ON INGREDIENTS Hazardous Component Urea 2-Acrylamido-2- methylpropanesulphonic acid sodium salt polymer 3 HAZARDS IDENTIFICATION PRIMARY ROUTES OF EXPOSURE: ACUTE OVEREXPOSURE EFFECTS: CAS# 000057-13-6 FRW-16.001 Eye contact. Skin contact. Percent Hazard 1-5 1-5 Region USA INHALATION: Not a likely exposure route, unless product is heated or misted. Prolonged inhalation of mist may cause respiratory tract irritation. INGESTION: Not a likely exposure route. EYE CONTACT: May cause mild eye irritation. n U SKIN CONTACT: Prolonged contact may cause mild irritation. EXPOSURE LIMITS: HAZARDOUS COMPONENT Urea ACGIH TLV OSHA PEL NA NA 2-Acrylamido-2- NA NA methylpropanesulphonicacld sodium salt polymer 4 FIRST AID MEASURES INHALATION: LC50 (inhalation) LD50 (oral) NA 8471 mg/kg rat NA NA If inhaled, remove from area to fresh air. Get medical attention if respiratory irritation develops or if breathing becomes difficult. INGESTION: Do not induce vomiting. Give victim plenty of water. Obtain medical attention immediately. EYES: Flush eyes with plenty of water and get medical attention if irritation persists. SKIN: Flush skin with water. Remove contaminated clothing and launder before reuse. Get medical attention if irritation persists. 5 FIRE FIGHTING MEASURES FLASHPOINT (METHOD): LOWER EXPLOSION LIMIT (% v/v UPPER EXPLOSION LIMIT (% v/v) AUTO-IGNITION TEMPERATURE: > 200° F Not available/applicable Not available/applicable Not available/applicable SPECIAL HAZARDS: Product will burn if strongly heated. EXTINGUISHING MEDIA: Water fog, carbon dioxide, foam, dry chemical. SPECIAL FIREFIGHTING PROCEDURES: Fire-fighters should wear self-contained breathing apparatus and full protective clothing when fighting chemical fires. Cool exposed containers with water spray. HAZARDOUS COMBUSTION PRODUCTS: Oxides of carbon, nitrogen and sulphur. 6 ACCIDENTAL RELEASE MEASURES Wear specified protective equipment. Small spills -Cover spill with absorbent material. Scoop absorbed material into a suitable container for disposal. Large spills -Dike to contain. Prevent from entering sewers or waterways. Recover product to suitable containers or vessel for reuse, if possible, or for disposal. Caution -surfaces can become very slippery. 7 HANDLING AND STORAGE HANDLING: Wear specified protective equipment. Use only in a well ventilated area. STORAGE REQUIREMENTS: Keep in a cool, well ventilated place. Keep away from heat. Keep away from incompatible materials. 8 EXPOSURE CONTROLS/PERSONAL PROTECTION SPECIFIC ENGINEERING CONTROLS: • ! • Use only in a well ventilated area. PERSONAL PROTECTIVE EQUIPMENT: Appropriate respiratory protection shall be worn when applied engineering controls are not adequate to protect against inhalation exposure. Chemical resistant goggles. PVC gloves. Coveralls. 9 PHYSICAL AND CHEMICAL PROPERTIES PHYSICAL STATE: COLOR: ODOR: ODOR THRESHOLD: SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air = 1) EVAPORATION RATE: BOILING POINT: FREEZING POINT: Emulsion Milky-white Mild Not available/applicable 1.2 @ 59°F Not available/applicable Not available/applicable Not available/applicable Not available/applicable -4°C/24.8°F pH: 6-7.5 VISCOSITY (F): Not available SOLUBILITY IN WATER: Dispersible 10 STABILITY AND REACTIVITY STABILITY: Stable under normal conditions of use. INCOMPATIBILITY/CONDITIONS OF REACTIVITY: Strong oxidizers. HAZARDOUS THERMAL DECOMPOSITION PRODUCTS: Oxides of carbon, nitrogen and sulphur. HAZARDOUS POLYMERIZATION: Will not occur. 11 TOXICOLOGICAL PROPERTIES CHRONIC EFFECTS: None known. SENSITIZATION: Not known. CARCINOGENICITY: None of the components of this product have been listed as carcinogenic by IARC, NTP or OSHA. (IARC-International Agency for Research on Cancer) (NTP -National Toxicology Program) (OSHA- Occupational Safety & Health Administration (US)) None of the components of this product have been listed on the SZW-list (Kankerverwekkende stoffen). SZW- Ministerie van Sociale Zaken en Werkgelegenheid This product is not classified as a carcinogen in accordance with COSHH Regulations.COSHH -Control of Substances Hazardous to Health. MUTAGENICITY: Not known. REPRODUCTIVE TOXICITY: Not known. 12 ECOLOGICAL INFORMATION No specific information available. 13 DISPOSAL CONSIDERATIONS WASTE DISPOSAL: Disposal should be made in accordance with national and local regulations. Consult local waste authorities for direction and/or approvals prior to disposal. 14 TRANSPORT INFORMATION LAND TRANSPORT (DOT) Proper Shipping Name: Hazard Class -Primary: UN/ID No.: Packing Group: Subsidiary Risk: Reportable Quantity (RQ): Emergency Response Guide #: NOT RESTRICTED NA AIR TRANSPORT (ICAO/IATA) Proper Shipping Name: NOT RESTRICTED Hazard Class -Primary: UN/ID No.: NA Packing Group: MARINE TRANSPORT (IMDG/IMO) Proper Shipping Name: NOT RESTRICTED Hazard Class -Primary: Packing Group: EmS: 15 REGULATORY INFORMATION SARA TITLE III: SECTION 302/304 This product does not contain substances listed in Appendix A and B as an Extremely Hazardous Substance. SECTION 311/312 Delayed, Immediate SECTION 313 This product does not contain ingredients (at a level of 1 % or greater) on the List of Toxic Chemicals. TSCA INVENTORY: The substances in this product are included on or exempted from the TSCA 8(b) Inventory (40 CFR 710). CALIFORNIA PROP 65: This product does not contain substances which require warning under California Proposition 65. PRIORITY POLLUTANTS: 16 OTHER INFORMATION ISSUE DATE: 08/24/2007 PREPARED BY: BJ Services Environmental Group REFERENCES: CCINFO Web Information Service, Canadian Centre for Occupational Health and Safety, 2006. EH40/2005 Workplace exposure limits, Health and Safety Executive, Norwich, 2005. • Guide to Occupational Exposure Values - 2006, American Conference of Governmental Industrial Hygienists, 2006. International Marine Dangerous Goods Code, 2002 Edition ,International Maritime Organisation, 2002. Restructured ADR -European Agreement Concerning the International Carriage of Dangerous Goods by Road, United Nations, New York and Geneva, 2001. Vols. I, II. Supplier's Literature. Dangerous Goods Regulations, 47th ed., International Air Transport Association, 2006. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. Revision: 1 Status: Approved & Released MSDS Revision History: Revision: Sec/Para Changed Change Made: Date 1 N/A Initial Issue of Document 8/24/07 Name: Sue Brusenhan Approved - 08/24/2007 by Sue Brusenhan Title: HSE Specialist Name: Title: JoAnn Cobb Approved - 08/24/2007 by JoAnn Cobb Manager, Environmental Services New MSDS created 08/24/2007 03:36 PM by Sue Brusenhan First Approver Selected 08/24/2007 03:36 PM by Sue Brusenhan Second Approver Selected 08/24/2007 03:36 PM by Sue Brusenhan MSDS submitted for Final Approval by Sue Brusenhan -- 08/24/2007 Final Approval 08/24/2007 03:39 PM by JoAnn Cobb Final Approval 08/24/2007 03:44 PM by Sue Brusenhan ~ ~~s ~~~ • ~' BJ SERVICES COMPANY RUSAn ~ ' MATERIAL SAFETY DATA SHEET SECTION I -GENERAL INFORMATION PRODUCT NAME: ITEM NUMBER: CHEMICAL DESCRIPTION: PRODUCT USE: SUPPLIER: ADDRESS: EMERGENCY TELEPHONE NUMBER PREPARED BY: DATE PREPARED: ' ~.i°' ~ ~ r()'`i GBW-18 ~~ 488224 ~; Sodium persulfate -.- Breaker -Water BJ Services Company ~~?•'3k~ `~ ~"'° ~l~,1t~~t1lSSinr~ 11211 FM 2920 ~ t~M1~6~`(8 Tomball, TX 77375 (800)424-9300 for CHEMTREC (202)483-7616 Alaska and International BJ Services Environmental Group (281)351-8131 December 13, 2000 Supersedes: March 9, 1999 HMIS HAZARD INDEX HEALTH: 1 FLAMMABILITY: 1 REACTIVITY: 1 PERSONAL PROTECTION: h SECTION II -HAZARDOUS COMPONENTS HAZARDOUS COMPONENTS CAS # PERCENT HAZARD Sodium persulfate 7775-27-1 >99 Oxidizer SECTION III -FIRE AND EXPLOSION HAZARD DATA FLASHPOINT (METHOD): UPPER EXPLOSION LIMIT(% BY VOL): LOWER EXPLOSION LIMIT(% BY VOL): AUTO-IGNITION TEMPERATURE: EXTINGUISHING MEDIA: SPECIAL FIRE FIGHTING PROCEDURES EXPLOSION DATA: HAZARDOUS COMBUSTION PRODUCTS: Incombustible N.A. N.A. N.A. Water, dry powder, C02, and other inert materials Evacuate personnel to a safety area. If smoke and fumes can not be avoided, use proximity suits and self-contained breathing apparatus. N.E. Incombustible SECTION IV -HEALTH HAZARD DATA GBW-18 -USA- Revised 10/26/2006/Page 1 UNCONTROLLED WHEN PRINTED • • PRIMARY ROUTES OF ENTRY: Skin and eye contact, inhalation ACUTE OVEREXPOSURE EFFECTS: SKIN CONTACT: May cause irritation. SKIN ABSORPTION: Not absorbed by skin. EYE CONTACT: Airborne dust may irritate eyes. INHALATION: Inhalation of airborne dust at high levels may produce shortness of breath in allergic persons. INGESTION: Not an expected route of entry CHRONIC OVEREXPOSURE EFFECTS: Continuous contact may cause skin dermatitis. EXPOSURE LIMITS: HAZARDOUS COMPONENT ACGIH TLV OSHA PEL Sodium persulfate N.E. N.E. CARCINOGENICITY, REPRODUCTIVE EFFECTS: Not listed as carcinogenic - IARC, NTP, or OSHA TERATOGENICITY, MUTAGENICITY: No effects listed. TOXICITY STUDIES: LD(50) 895 mg/kg (oral rat) LC(50) N.E. SECTION V -FIRST AID PROCEDURES FOR EYES: Immediately flush with plenty of water for at least 15 minutes. If irritation persists, contact a physician. FOR SKIN: Wash thoroughly with water. If irritation occurs and persists, obtain medical attention. FOR INHALATION: Remove to fresh air. If breathing has stopped, give artificial respiration. Keep person warm, quiet and get medical attention. FOR INGESTION: Give plenty of water. Induce vomiting! Never give anything to an unconscious person. Call a physician. SECTION VI -PHYSICAL DATA APPEARANCE AND ODOR SPECIFIC GRAVITY: VAPOR PRESSURE: VAPOR DENSITY (air-1): EVAPORATION RATE: BOILING POINT: FREEZING POINT: SOLUBILITY IN H2O: pH: White crystalline powder, odorless N.E. N.A. N.A. N.A. N.A. N.A. 70.2g/100g at 20°C N.A. GBW-18 -USA- Revised 10/26/2006/Page 2 UNCONTROLLED WHEN PRINTED SECTION VII -REACTIVITY DATA CHEMICAL STABILITY: INCOMPATIBLE MATERIALS: HAZARDOUS POLYMERIZATION: HAZARDOUS DECOMPOSITION PRODUCTS: • Stable Reacts with acids, alkalis, heavy metals and reductants to release oxygen. Does not polymerize Decomposes when stored under conditions of excessive heat and/or moisture, generating heat and causing the release of oxides of sulfuric acid and oxygen which supports combustion. SECTION VIII -SPECIAL/PERSONAL PROTECTION VENTILATION: The use of mechanical ventilation is recommended whenever this product is used in a confined space. Where engineering controls are not feasible, assure use is in an area where there is natural air movement. RESPIRATORY PROTECTION: Where there is inadequate ventilation, respirators with filters and/or sorbents are recommended. PROTECTIVE GLOVES: Rubber or neoprene EYE PROTECTION: Goggles OTHER PROTECTIVE EQUIPMENT: Eyewash bottles or other rinsing equipment should be easily accessible. SECTION IX -HANDLING PRECAUTIONS LEAK AND SPILL PROCEDURES: Sweep up and place in suitable containers for reuse or disposal WASTE DISPOSAL: If this product becomes a waste it does not meet the requirements of a RCRA hazardous waste. Always dispose of according to local/state/federal regulations. HANDLING & SPECIAL EQUIPMENT: Avoid contact with combustible materials. STORAGE REQUIREMENTS: Store in a cool, dry, well-ventilated place away from incompatible materials. Keep bags or fiber drums dry at all times. SECTION X -REGULATORY INFORMATION SHIPPING INFORMATION PROPER SHIPPING NAME: HAZARD CLASS: UN/NA NUMBER: PACKING GROUP W/ "PG": SUBSIDIARY RISK: REPORTABLE QUANTITY (RQ): EMERGENCY RESPONSE GUIDE #: ENVIRONMENTAL INFORMATION Sodium persulfate 5.1 U N 1505 PG III N.A. N.A. 140 GBW-18 -USA- Revised 10/26/2006/Page 3 UNCONTROLLED WHEN PRINTED u SARA TITLE III • SECTION 302/304 This product does not contain ingredients listed as an Extremely Hazardous Substance. SECTION 311/312 Immediate SECTION 313 This product does not contain ingredients (at a level of 1 % or greater) on the List of Toxic Chemicals. OTHER REGULATORY INFORMATION TSCA INVENTORY: All of the components in this appear on the TSCA inventory. CALIFORNIA PROP 65: None of the chemicals on the current Proposition 65 list are known to be present in this product. The information contained herein is based on data considered accurate. However, no warranty is expressed or implied regarding the accuracy of these data or the results to be obtained from the use thereof. Vendor assumes no responsibility for injury to vendee or third persons proximately caused by the material if reasonable safety procedures are not adhered to as stipulated in the data sheet. Additionally, vendor assumes no responsibility for injury to vendee or third persons proximately caused by abnormal use of the material even if reasonable safety procedures are followed. Furthermore, vendee assumes the risk in his use of the material. GBW-18 -USA- Revised 10/26/2006/Page 4 UNCONTROLLED WHEN PRINTED • ,~ ~- l~ Alaska Oil and Gas Conservation Commission December 16, 2008 333 W. 7`" Avenue, Suite 100 Anchorage, AK 99501 Attn: Mr. Jim Regg RE: Three Mile Creek #2 Dear Mr. Regg: This letter in duplicate originals transmits the data to you identified below, pursuant to Aurora Gas, LLC's obligation to you. This data is relative to operations at the Three Mile Creek Field, Cook Inlet, Alaska. The enclosed data consists of SCHL,UMBERGER LOG RECORD Three Mile Creek #2 -One paper copy each Perforation Depth Correlation Perforation Record ~~~ ~~~,. ~ ~~(~€ Tubing Conveyed Perforation Correlation LAS files sent electronically today Please signify that you have received and accepted this data by signing in the space below and returning this letter to me at the Anchorage address below or by fax to me at 907-277-1006. If you have questions, please contact me, or Ed Jones at the Houston number below. Sincerely, Bruce D. Webb Manager, Land and Regulatory Affairs _/ Li3 ~~~~ RECENED AND ACCEPTED ABOVE DATA This _day of , 2008. BY: TITLE: .t~~® ~as~ ~e~~®~ ~t~~., ~~~~~ ~s~ ®.~~c~a®rage, ~~ ~~~~~ ~ ~~~~°$ ~~~-~~~~ ©~~xo ~~®~~ ~~~-~~®~ ~~~3 R9aaa~~ ~~u~se ~~~~~, S~s~~ 2®~ A ~3~ars~s~re, '~~ T7~3~~ ~ (;-~~ ~; ~ ~ ~-~.~~~ ~ ~~~a ~'~~3) 9~~-1.~~3~ • • a ~ ~ ~ ~ SARAH PAL1N, GOVERNOR 4it[~-7~A OIIj t>•isil ~ 333 W. 7th AVENUE, SUITE 100 COI~TSI'iR`TATIOIQ CODIl~'IISSIOrIT ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Bruce Webb VP Aurora Gas LLC 1400 W. Benson Blvd., Suite 410 Anchorage, AK 99503 ~~,~ ` ~ ~ 3 Re: Three Mile Creek Gas Field, Beluga Undefined Gas Pool, Three Mile Creek Sundry Number: 308-318 ~ANN~~ SEA ~ ~ ZODS Dear Mr. Webb: 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. Sincerely, ~~~ Daniel T. Seamount, Jr. Chair L DATED this ~ day of September, 2008 Encl. i'~ G ~ ~, a ~ >~ ll,.~ (°~ ~~ STATE OF ALASKA ~~, 4, I~ ~~. ZQ~~i O a~~ A~ OIL AND GAS CONSERVATION COM~ION ~( APPLICATION FOR SUNDRY APPRO~~;~ ~~ r~~~ C;~~r~ ~. ~cmmissi n~v 20AAC 25.280 ~~ ~.~,~y~, 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate Q Waiver Other Q Alter casing ^ Repair well ^ ~ Plug Perforations ^ Stimulate ^ Time Extension ^ install packers and Change approved program ^ Pull Tubing [ Perforate New Pool ^ Re-enter Suspended Well ^ sliding sleeves 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: AURORA GAS LLC Development ^ Exploratory ^ 205-143 3. Address: Stratigraphic ^ Service ^ 6. API Number: 1400 W. Benson Blvd., Suite 410, Anchorage, AK 99503 50-283-20116-00 7. If pertorating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ~ ~ Three Mile Creek #2 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool{s): State of Alaska ADL 388233 ~ 310' AMSI (DF) Three Mile Creek Beluga Gas Field 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft}: Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD {ft): Plugs (measured}: Junk (measured): 5,299 4,899 5,218 4,822 none none Casing Length Size MD TVD Burst Collapse Structural Conductor 80" 13-3/8" 80' 80' 1,530 psi 520 psi Surtace 1,021' 9~i/8" 1,021' 962' 3,520 psi 2,020 psi Intermediate Production 5,299' 5.5" 5,299" 4,720' 4,270 psi 3,120psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft}: Tubing Size: Tubing Grade: Tubing MD (ft): 2,192" - 4,892' 1,948" - 4,880' 2-7/8" J-55 3,496' Packers and SSSV Type: HES PHL Packer, no SSV Packers and SSSV MD (ft): Prod. Packer at 2,150' MD HES PHL Packer, no SSV Prod. Packer at 2,475' MD BWD Seal Bore Packer, no SSV Prod. Packer at 3,475' MD 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory ^ Development Q Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing operations: Sept@fZlb@r S, 2U0~, Oil ^ Gas Q Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact .J, Edward Jones (907) 277-1003 Printed Name Bruce D. Webb, Manager, Land and Regulatory Affairs Title Vice President, Engineering and Oper. Signature ~,~~ ~ Date September 4, 2008 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~,~ ~p'L~~pCn~ ^ \ _ Pl I t i ^ BOP T i l I ti Cl t ~ M h t it T t ^ L earance n egr ty es ca oca on ug ec an n egr y es Other: ~ ~' ~~~~ ~~/ ~,~y i , ~ S \ `~~ "}CS~ S ~Ft. s~P o ~ zoos 1' Subsequent Form Required: _'~1 O~~ ~ h~ APPROVED BY ~ f ~ Approved by: ' COMMISSIONER THE COMMISSION Date: ~ Form 10-403 Revised 0 2006 ^' (~ ~ ~ ~~ Submit in u ate ~~ ~ (l 11 rlJ\ 1v-e 111......... ~~~~ Aurora Gas, LLC THREE MILE CREEK #2 2008 R/G WORKOVER / RECOMPLETION PROCEDURE Version 1.1 CAPACITIES: 2-7/8" Tubing: 0.00579 bbl/ft and 5-1/2" 15.5# Casing: 0.0238 bbl/ft 5-1/2" Casing X Z-7/8" Annular Volume: 0.0158 bbl/ft. Casing Drift ID is 4.825" Tubing Volume to Sliding Sleeve above Top Packer is 12.1 bbl. Annular volume to sliding sleeve is 32.9 bbl for total circulation volume of 44.9 bbl. Casing vol. to deepest perf: 116.4 bbl. 9.6 ppg brine left in tbg-csg annulus. KB= 15' above GL (all depths from KB). PBTD=5225' MD; TD=5307'MD/4899' TVD RESTRICTIONS IN TUBING: Tubing ID=2.441 ". Drift ID=2.347" HES XD Sliding Sleeve at 2081'-2.313"; HES PHL Pkr at 2128' --2.360" HES XD Sliding Sleeve at 2175'-2.313" ; 30' Blast Joints at 2183' & 2244' - 2.420"; HES XD Sliding Sleeve at 2290' 2.313"; HES PHL Pkr at 2468'- 2.360"; HES XD Sliding Sleeve at 2514'-2.313"; 30' Blast Joints at 2522' & 2677'-2.420'; HES XD Sliding Sleeve at 314$'-2.313"; Seal Assembly at 3475'-2.330"; HES XN Landing Nipple (No Go) at 3490'-2.205" Bottom of Tubing w/ Muleshoe Entry Guide-3496'. EXISTING PERFS: 2192-2212'; 2232-2272'; 2502-2512'; 2535-2550'; 2683-2703'; 3104-3114'; 3507-3537'; 3744-3754'; 3875-3895'; 4135-4150'; 4427-4447'; 4771-4781'; 4882-4892'. 1) Prior to moving in rig, shut in well (all tree valves including SSV). Disconnect flow line downstream of SSV. Disconnect electrical and put in safe place-use care to avoid damaging. (Need Work Permit from Operators to do so}. Remove well houses from well and set aside out of the way. 2) Move in, rig up AWS #1 rig w/ single workover pit for mud system (not AG mud system) and support equipment only as needed. 3) Starting with clean mud tank, mix 150 bbl (usable volume) 9.4 ppg KCl-NaCI brine (6% KCl-20#/bbl + about 55#/bbl NaCl, depending upon starting density of produced water), using clean produced water from tanks on TMC locations. Expected volume to fill well is 20-36 bbl. 4) RU to pump down annulus thru casing valve on tree. Expect to have some pressure on tubing (as much as 650 psi}---bleed off. RU to take returns from flowline (2-U8" 5000# A.PI flanged connection)-have operators open and lock SSV open. Disconnect SSV controls and put aside in safe place. 5} RU Pollard with lubricator on tree cap. Run in hole with slick line, Retrieve plunger-lift plunger. POH. RIH. Retrieve plunger bumper spring. POH. RIH. Open HES XD sliding sleeve at 2081'. POH. Release Pollard. 6j Reverse circulate volume (20-36 bbl) at low rate and pressure to kill well with 9.4 ppg KCl-NaCI brine. Monitor well--circulate/reverse circulate as needed to kill well--expected kill weight brine weight is only 5.0 ppg. May lose volume as • • some zones are depleted. Monitor losses-may need to use LCM (salt or ground calcium carbonate) material to control. 7) When well is dead, set BPV in tubing hanger, ND tree, NU 3000-psi BOPE. Test to 2000 psi (or as required by AOGCC Sundry approval). 8) Latch onto tubing hanger and release 2 HES PHL (hydraulic) packers. Unsting from BWD permanent packer. Reverse circulate tubing volume as needed to get any gas out of tubing then reverse circulate as needed until water is coming back as clean as going in. Watch well to be sure it is dead. POH w/ tubing, packers, and seal assembly. Monitor hole and keep full. 9j Run 5-1/2"" 15.5# casing scraper on 2-7/8" tubing and clean out to 3475' (top of permanent packer), noting depths any fill is encountered. Catch samples of fill. Circulate hole clean. Circulate and filter brine until it is 9.4 ppg and clean (thru 5 or 10 micron sock filters). POOH with tubing. LD scraper. 10) Move in Schlumberger electric-line unit, and lubricator. Pressure test to 1000 psi. Run GR/CCL to 3475' (tag packer) and tie in to open-hole logs. 11) Make up TCP assembly to perforate w/ Schlumberger 3-1/8" HSD guns with .Powerjet Omega charges (6 SPF w/ 60 deg phasing-OR EQUAL), using 2-7/8" tubing, as spacers to perforate as follows: - a) 3289-3314' (25'}--partially depleted by #1--expect 5.0-8.9 ppg • b) 3009-3021' (12')-MDT indicated 9.3 ppg gradient • c} 2980-2994' (14' )--MDT indicated 9.0 ppg gradient • d) 2938-2957' (19')-partially depleted by #1-expect 5-6.8 ppg • e) 2772-2790' (18'}-partially depleted by #1-expect 5-8.0 ppg Total of 88' of perfs over 542' interval. 12) Pick up spacer tubing to set packer at +/-2740' (deeper than original Middle packer). Run HES XD sliding sleeve (closed) w/ X profile nipple 1 joint above firing mechanism (no perf sub}. PU new HES PHL packer. Run in hole on 2- 7/8" tubing w/ On-Off tool on packer, filling tubing as TIH. When "on depth," run correlation log to set packer to perforate the above intervals. POOH w/ electric line, RD Schlumberger lubricator. Set packer at +/-2740', as per correlation log. NOTE: Rabbit all tubing before going in hole. 13) RU Aurora Gas Test Unit as follows: a) set test choke manifold close to rig choke skid and connect to w/ 1502 hard line; b) install 24/64" positive choke in manifold (left side)-- use 2" 1502 target tees upstream of choke skid; c) run AG 2" 1502 hard line from choke manifold to test separator; d) set flare stack 100' or more from the rig and from trees and raise stack; and e) lay AG 3" 1502 hard line from separator skid to flare stack, and connect propane bottle to flare stack. i3) Prepare for test: a) Take and record initial measurements of brine levels in all tanks to which swabbed/flowed back brine will go-know exact volume of brine is in all tanks; b) Record test separator water meter reading; c) install new chart on Barton recorder; d) install fresh nitrogen bottle onto skid for instrumentation; e) install new 2000 psi pressure gauge near test head, isolated with needle valve (upstream from valve that will shut in well for buildup-will want it to record and • • show SI pressures), and f) confirm electric clock on chart recorder is on and set to 12 hrs and chart is appropriate for clock time. 14) Pressure test tubing to 1500 psi. Swab tubing fluid level down to 2004'. RU Pollard and open sliding sleeve below packer at +/- 2770' . RD Pollard. RU to flow back. 15) Hold RJSM. Drop bar to perforate. Monitor surface pressure. Record 5 minute SIP. 16) Flow test well as follows until clean and stable, as follows: a) swab in if necessary (not expected to be), unloading fluid to shaker/possum belly until well is gassing and/or kicks off to flow; b) when significant gas is at surface (whether swabbing or flowing) or the well is flowing, divert flow to test separator: i) shut down momentarily to light flare stack, then bring back on, adjusting choke size until well is flowing strongly to cleanup, but holding some back pressure on it (probably start at 14/64's and adjust accordingly, target flow at 75% of SIP. ii) Flow until rate and pressure have stabilized for 15 minutes, increasing slightly is OK, but dropping is not wait until fluctuations tend to be up, not down) and water has dried up (all of tubing volume + casing volume to 3000' has been recovered, 27 bbl at a minimum) or rate has stabilized . Flow for a minimum of 1 hour. Probably more (2-3 hours), depending upon water production and cleanup. Watch for sand production in water. If producing any sand or much water, shut in and call. iii) Start w/ 1" orifice in test meter. Flow rate in mcf/day- static reading (blue) X differential reading (red) X 31, If red chart reading is below 3, change to 0.75" orifice; if it is above 8 change to 1.5", then 2.0" orifice. Meter factors change to 17.4, 70, or 130, respectively. Orifices may be changed by experienced operator while flowing w/the Daniel Sr. orifice fitting. iv) Catch water samples thru out (downstream of test separator)-have tested with mud kit for weight record with time of sample. Produced water should have weight is less than 8.4 ppg-if water is trending in that direction, continue to flow until these properties have stabilized. Keep last sample of produced water to send to lab in Anchorage---label thoroughly, v) Shut in well for buildup twice as long as flow period (could build up to about 1200 psi, but will likely be less-800 psi or so). Report test results to me (Ed}--including email report of flow and buildup tests. If well is making significant water, well will be killed, the packer pulled, a test packer run, and the water production will be isolated-a Supplementary Procedure will be provided for this operation. 17) RU Pollard slick-line unit and RIH to close sliding sleeve below packer (at +/- 2770'). Blow down tubing to test sleeve When sleeve is holding, RD Pollard and prep to pull tubing. 18) Release On-Off tool, and TOH with tubing. 19) RU Schlumberger electric-line unit to perforate w/ lubricator w/ grease injector and test to 1000 psi. PU 10' 2-7/8" HSD gun w/ Powerjet Omega charges (6 SPF • • w/ 60 deg phasing). RIH and perforate 1987-1997' (10'). Monitor well after perforating. 20) RD perforators. Insure well is dead, lubricate in 9.4 ppg brine to kill well if needed, using minimal amount of brine. PU casing scraper on 2-7/8" tubing and run to 2100'. Rev CBU. POH and LD csg scraper. 21) Pick up On-Off tool with HES XD sliding sleeve one joint above, tubing spacer, new HE5 PHL packer to be set at +/-1925' (no sliding sleeve above packer), RIH on 2-7/8" tubing. Latch onto On/Off tool stub. Pressure test tubing to 2000 psi. Set packer. Test annulus to 1000 psi. Set BPV. ND BOPE and NU tree. Pull BPV. 22) Prep for test as in 13) above. RU Pollard slick-line unit and open sliding sleeve just above On-Off tool (+/-2700'). RD slick-line (but do not release}. Swab well in and test as in Step 15) above. If significant water is produced on test, the well will be killed, the water isolated, and packers set accordingly to isolate-a Supplemental Procedure will be provided at that time. 23) When test is completed, RU slick-line and RIH to open sliding sleeve below second packer (a +/-2770'). May have to bale perforating debris off of it have hydrostatic baler available. RD Pollard. If sleeve cannot be opened, perforate tubing multiple times in joint above sleeve with slick-line Kinley punch (or other recommended tool) to give at least 12 - '/4" hales (more than 0.5 sq. in.). 24) Put well on production to compressor. NOTES: 1) If SIP's are significantly different, the top sliding sleeve may be closed before pulling plug to open Middle and Lower Completions. Middle and Lower Completions will then be produced until pressure drops to near Upper Completion SIP, at which time the Upper Completion sliding sleeve will be opened and all perforations will be commingled. 2) We will not re-run blast joints unless there is wear/scour on them or the tubing across from perfs-if so, run in those places. 3) Some of original perforated intervals of Middle Completion will now be in Upper Completion, in addition to new perforated intervals. Ed Jones 8/4<08 (Rev 8128/08) • `~4tkgru Gtas, LLC Displaxd 2 718" x s.s" annut~ and tubing w~ 1°!o-2N. inhihibd brine • 13 318" 72q H-40 conducts drilled to 80't 2 718", 6.5#, Brd EUE tubing l2 114" hole drilled to 102 t' MD , 975 TVD. 9.525° 35# BTC J-55 Casing tc 1019" MD, Ceinentod witi~ 14.5 ppg Gas-Block Type I caneot shary system to surface 'acker (a~ 1925' MD LTPP6R COMPLETION _ Perfs 1987-199?' (t-cwv) 2192-2212', 2232 2272' 2502-12', 2532-50', 2683- 2703' (]790.2375' TVD) MIDDLE COMPLETION Paws 2772-90', 2938-57'(new) 2980-94',3009-21'(new) 3104-3114', 3289-3314' (new) (2435'-2932' TVD) LOWER COMPLETION Perfs (Nip CHANGE) _ 3507-3537', 3744 3754', 38 3895',4135-4150',4427-44 4771~78i', 4882-4892' (3118480' TVD) Aiding Sleeve at !735' & On-0ff fool at 2738' ?a~dcer Q 2740' MD iliding Sleevc ~ 2750' fCP guns assembly 1760-3314' Packer Qa 3475'MD lCN banding Nipple at 3498' .5#, J-55 casing set ~~ ~~,,.ed with Class G Three Mile Creek Unit No. 2 Proposed 2008 Well Configuration 1-Aurora Gas, LLC Three Mile Creek Unit No. 2 Final Well Configuration (; ZvO(o Displaced 2 7/8" x 5.5" annulus and tubing w/ 1%- 2% inhibited brine UPPER COMPLETION Perfs 2192-2212',2232-2272' (1948-2014'TVD) MIDDLE COMPLETION Perfs -~ 2502-2512',2535-2550', 2683-2703',3104-3114' (2204-2744' TVD) LOWER COMPLETION Perfs --1 3507-3537', 3744-3754', 3875- 3895', 4135-4150', 4427-4447', 4771-4781',4882-4892' (3 ] 18480' TVD) • 1 ; 3/8" 72# H-40 conductor drilled to 80't 2 7/8", 6.5#, 8rd EUE tubing 12 1/4" hole drilled to 1021' MD , 975 TVD. 9.625" 36# BTC J-55 Casing to 1019" MD, Cemented with 14.5 ppg Gas-Block Type I cement slurry system to surface hiding Sleeve at 2081' 'acker @ 2150' MD hiding Sleeve at 2175' Sliding Sleeve at >_290' Packer @ 2475' MD Sliding Sleeve at ?514' Sliding Sleeve at 3148' Packer @ 3475'MD iCN Landing Nipple at 3498' .5#, J-55 casing set 'MD ~.emcmed with Class G Page 1 of 2 ~ • Maunder, Thomas E (DOA) From: Bruce D Webb [bwebb@aurorapower.comj Sen#: Thursday, September 04, 2008 11:04 AM To: Maunder, Thomas E (DOA); 'Ed Jones' Cc: Davies, Stephen F (DOA); Regg, James B (DOA) Subject: RE: Rig Schedule Attachments: 2008 TMC 2, 10-403 Sundry Application.xls; 2006 TMC No 2 Current Well Configuration.doc; 2008 Recompletion ProcedureTMC 2.doc; 2008 TMC 2 Proposed 2008 Well Configuration.pdf; 10-404 TMC 2.xls Thanks Tom, Attached is the 10403, the previous 10-404, the well work-over proceedures, current well) diagram, and proposed well diagram. Is it possible to get a vergal approval for the work? If so, I can insert it in section #17 of the Sundry Application before I bring down the originals. -Bruce From: Maunder, Thomas E (DOA) [mailtatom.maunder@alaska.gov] Sent: Thursday, September 04, 2008 10:28 AM To: Bruce D Webb Cc: Davies, Stephen F (DOA); Regg, James B (DOA) Subject: RE: Rig Schedule Thanks Bruce. We will look forward to seeing the sundry. Essentially a sundry is needed for any well work Aurora might have planned. Please note that until an approval is received from the Commission, Aurora is not authorized to alter the well as it was left previously. This is the major rig work and preparations. Wireline work and pumping on the well, if planned, is not an issue however ND/NU is. Tom Maunder, PE AOGCC From: Bruce D Webb [mailto:bwebb@aurorapower.com] Sent: Thursday, September 04, 2008 10:15 AM To: Maunder, Thomas E (DOA) Subject: Rig Schedule Tom, First of all, we were remiss in applying for a Sundry on Three Mile Creek #2. Both Ed and I had thought we did, but in the flurry of activity we have had in drilling plans, lease negotiations, company plans, etc, we missed this one. tam preparing it right now and will deliver it before noon today. it is fairly straight forward, just adding a few perforations, moving the packer locations and sliding sleeves. As for the rig schedule: Three Mile Creek #2 Workover, the drilling rig is on location and rigging up! 9/4/2008 Page 2 of 2 * • Moquawkie #4 Development Well, plans are to be on location by September 15m, 2008. Lone Creek #4 Development Well, plans are to be on location by October 15~', 2008. From there, we are hoping to bet funding for the Hanna Exploratory well, no PTD application is filed yet. Then, if Danny Davis gets his funding, the rig will go to the Escopeta North Alexander Well, then hopefully east to the Fox Petroleum CatchePs Mitt wells {permits being prepared right now). Hope that helps, sorry about the TMC #2 Sundry. -Bruce Bruce D. Webb Manager, land and Regulatory Affairs Aurora Gas, LLC 1400 W. Benson Blvd., Suite 410 Anchorage, AK 99503 (907) 277-1003 office (907) 229-8398 cell (970) 277-1006 fax 9!412408 STATE OF ALASKA ALA OIL AND GAS CONSERVATION COM~ION REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ~ open tubing Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver ^ Time Extension ^ sleeves Change Approved Program ^ Operat. Shutdown ^ Perforate ^ Re-enter Suspended Well ^ 2. Operator AURORA GAS LLC N 4. Well Class Before Work: 5. Permit to Drill Number: , ame: Development Q Exploratory^ 205-143 3. Address: 2500 City West Blvd., Su"rte 2500 Stratigraphic ^ Service ^ 6. APt Number: Houston, TX 77042 50-283-20116-00 7. KB Elevation (ft}: 9. Well Name and Number: 310' AMSL (DF) Three Mile Creek #2 8. Property Designation: 10. Field/Pool(s): State of Alaska ADL 388233 Three Mile Creek Beluga Gas Field 11. present Well Condition Summary: Total Depth measured 5,299 feet Plugs {measured) none true vertical 4,ggg feet Junk (measured} none Effective Depth measured 5,219 feet true vertical 4,822 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 13-318" 80' 80' n/a n/a Surface 1,021' 9-5/8" 1,021' 962' 3,520 psi 2,020 psi Intermediate Production 5,299' S.5" 5,299' 5,299' 4,270 psi 3,120 psi Liner Perforation depth: Measured depth: 2,192' - 4,892' True Vertical depth: 1,948' - 4,480' Tubing: (size, grade, and measured depth) 2-718" J-55 3,496' Packers and SSSV (type and measured depth) HES PHL 2,150' MD 2,475' MD 3,475' MD 12. Stimulation or cement squeeze summary: Intervals treated (measured): n/a Treatment descriptions including volumes used and final pressure: Na 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 320 3 70 210 psi Subsequent to operation: 0 616 3 70 210 psi 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run n/a Exploratory^ Development Q Service ^ Daily Report of Well Operations Dec. 17, 2008 16. Well Status after work: Oil ^ Gas ~ WAG ^ GtNJ ^ WINJ ^ WDSPL ^ 17. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N!A if C.O. Exempt: 306-307 Contact J. Edward Jones, V.P., Engineering and Operations (713) 977-5799 By Bruce D. Webb Title Manager, Land and Regulatory Affairs Signature Phone (907) 277-1003 Date 12120/06 Form 10-404 Revised 04/2006 Submit Original Only • M1CRC~FILMED Q3/41 I20a8 D4 NC~T PLACE ANY NEW ~tIATERIAL UNDER THIS PAGE F:\LaserFiehe\CvrPgs_Inserts\Microfilm_Marker.doc .. ~~ DATA SUBMITTAL COMPLIANCE REPORT 1 /29/2008 Permit to Drill 2051430 Well Name/No. THREE MILE CK UNIT 2 Operator AURORA GAS LLC API No. 50-283-20116-00-00 MD 5307 TVD 4899 Completion Date 11/25/2005 Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log No Samples No DATA INFORMATION Types Electric or Other Logs Run: PEX / FMI /MDT /Side wall core on 11-09-05; CBL / GR /C CL on 11- Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Type Med/Frmt Number Name Scale Media No f~ L,eg l ' Mud Log 2 Col 1 .r g ~ Mud Log 2 Col 1 „~,etj Formation Tester OTH Col 1 ,,!`6g Formation Micro Ima 5 Col 1 ', Lo . Induction/Resistivity (V~. ~~ 5 Col 1 ~ ,~ `", Log Induction/Resistivity (fJ 25 Col 1 Cement Evaluation 5 Col 1 Directional Survey Yes (data taken from Logs Portion of Master Well Data Maint Interval Start Stop OH / CH Received Comments A Directional Survey Log is required to be submitted. This record automatically created from Permit to Drill Module on: 10/10/2005. ~' 90 5305 C,~rSe 1/31/2006 OIL AND GAS TVD MUD LOG 90 5305 ~ 1/31/2006 OIL AND GAS MD MUD Cj7-^~'` LOG 2201 4887 Case 1/31/2006 MODULAR DYNAMIC TESTER 1040 5310 5+~e 1/31/2006 FORMATION MICRO o' IMAGER DIPMETER FIELD PRINT ~ 100 5310 6esre 1/31!2006 ARRAY ~~"`~ INDUCTION/LITHO- DENSITY/COMPENSATE[ NEUTRON/GAMMA RAY PLATFORM EXPRESS 100 5310 ~o /+~^- (,;a3~ 1/31/2006 ARRAY INDUCTION/LITHO- DENSITY/COMPENSATE[ NEUTRON/GAMMA RAY PLATFORM EXPRESS 600 5230 Case 1/31/2006 SLIM CEMENT MAPPING TOOL CEMENT BOND LOG & MAP IMAGES W/GR/CCL CORRELATION DATA SUBMITTAL COMPLIANCE REPORT 1 /29/2008 Permit to Drill 2051430 Well Name/No. THREE MILE CK UNIT 2 Operator AURORA GAS LLC API No. 50-283-20116-00-00 MD 5307 TVD 4899 Completion Date 11/25/2005 Completion Status 1-GAS Current Status 1-GAS UIC N Lq~ Completion // _ ~ ~~ ~ y- 5 Col 1 1990 2275 Case 1/31/2006 COMPLETION RECORD i [. ~a o" ~- SQUEZE PERF 3.5" HSD PJ 6 SPF 60 DEGREE ~' PHASED dog Completion ~ l NO ~ ~ ~ U ~~ "` 5 Col 1 1990 5210 Case 1/31/2006 COMPLETION RECORD PERF 3.5" HSD PJ 6 SPF 60 DEGREE PHASED Well Cores/Samples Information: uttings Interval Start Stop 90 5305 Sent Received Sample Set Number Comments 1163 ADDITIONAL INFORMATION Welt Cored? Y Chips Received? .X1-N- Analysis Y /~L Received? Daily History Received? t_.~ N Formation Tops Y/ N Comments: t9r ~ •~ a 1 b~'S~` S r i D i'C ~° t~~ FJ c ~ ~~j~,/ Compliance Reviewed By• __ ___ ^ c (~ ~ /` ~ ~ f /` J Cpl lr ~! Date: ~~ STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMION GAS WELL OPEN FLOW POTENTIAL TEST REPORT 1a. Test: ~ Initial Annual Special 1b. Type Test: Stabilized Non Stabilized ~ Multipoint ^ Constant Time ^ Isochronal ^ Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Aurora Gas, LLC 24-Nov-05 205-143 3. Address: 6. Date TD Reached: 12. API Number: 1400 West Benson Blvd., Suite 410, Anchorage AK 99503 November 6, 2005 50- 283-200116 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 679' FNL, 273' FEL, Sec 35, T13N, R11 W, SM 325' Three Mile Creek Unit #2 Top of Productive Horizon: 8. Plug Back Depth(MD+TVD): 14. Field/Pool(s): 221'FSL 427' FEL, Sec 27, T13N, R11 W, SM 5,225' MD 4,810' TVD Three Mile Creek Unit Total Depth: 9. Total Depth (MD + TVD): 671' FSL, 777 FEL, Sec 27, T13N, R11 W, SM 5,305'MD 4,890' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 2$6553 y- 2625014 Zone- 4 Unit Operating Agreement ADL 388233 TPI: x- y- Zone- 16. Type of Completion (Describe): Total Depth: x- y- Zone- Multi-packer Selective 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: From To 5-1/2" 15.5# 4.95 5,270' 3,507'-3,537', 3,844'-3,754', 3,875'- 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. 3,895', 4,135'-4,150', 4,427'-4,447' 2-7/8" s.5# 2.441 3,x95' 4,771'-4,781', 4,882'-4,892' 20. Packer set at ft: 21. GOR cf/bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): 2,128' NA None 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): Tubing ^ Casing 65 F° 880 psia @ Datum 2,232' TVDSS 15.025 psia 25. length of Flow Channel (L): Vertical Depth (H): Gg: % CO2: % NZ: % HZS: Prover: Meter Run: Taps: 4,000 3,800 0 1.05 0 Daniel Sr. 4.016 Flange 26. FLOW DATA TUBING DATA CASING DATA No Prover Choke Line X Orifice pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow . psig Hw F° psig F° psig F° Hr. Size (in.) Size (in.) 1 • 4 X 1 337 2.25 hrs. 2. 4 X 1 381 1 hrs. 3• 4 X 1 460 1 hs. 4. 4 X 1 587 6.5 hrs. 5. X Basic Coefficient ~ Pressure Flow Temp. F Gravity Factor Super Comp. F t Rate of Flow No. (24-Hour) h Pm actor F g or ac Q~ Mcfd Fb or Fp Ft Fpv 1. 31.45 Calculated using Daniel Sr. 714 2. 31.45 Orifice Meter Readings 695 3. 31.45 643 4. 31.45 541 5. for Separator for Flowing No Pr Temperature Tr z Gas Fluid . T Gg G 1. 2. 3. Critical Pressure 4. Critical Temperature 5. Form 10-421 Revised 1/2004 CONTINUED ON REVERSE SIDE Submit in Duplicate Pc 1,405 pcz 1,974,025 1,539 pp~ 2,368,521 No. Pt Ptz PcZ-Ptz ~ Puv2 P s-Pv~ Ps Ps2 Pf -Ps2 1• 337 113569 1,860,456 365 133,225 2,235,296 2. 381 145161 1,828,864 a12 169,744 2,198,777 3. 460 211,600 1,762,425 498 248,004 2,120,517 4. 587 344,569 1,629,456 636 404,496 1,964,025 5. 25. AOF (Mcfd) 757 Remarks: Calculated using Ryder Scott Software. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed f~OGf~,.--- Title jt~- ~: ~rf~,~...r i-:, ~ ~'~~- i~ T-~~_ . ~~ n 1 Date ~ ~ d' DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producin face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor- /1 Z dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F} per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia. Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 1/2004 Side 2 . , ~ 12 yder Scott WELL NAME: THREE MILE CREEK UNIT NO. 2 , 12eservoir FIELD: THREE MILE CREEK UNIT (~ ~ Solutions LOCATION: WEST 51DE OF COOK INLET, ALASKA `~-~ (Public) RESERVOIR: BELUGA--LOWER COMPLETION 3507-4892' BOTTOMHOLE TEMP, °F: 87 SOUR GAS MOLE GAS GRAVITY: 0.560 NZ 1.05 H2O GRAVITY, yW: __. _ 1 A20 __ C02 0.00 _- - COND. GRAV., °API: __ H2S 0.00 TVD, FT: 3,800 MEAS. DEPTH, FT: 4,000 Options Cond. Correl. (Y/N): N ~ Check, If Injection Well Corrected* Tc, °R: 343.50 Corrected* Pc, Psia: ___ 671.86 __. ~ Smooth Pipe Roughness Pressure Base, Psia: 14.650 TUBING ID, IN.: 2.875 * W ichert-Aziz correction for contaminants, if any RESULTS AOF, Mcf/d: 757 C: 0.000319 n: 1.000000 _o X `m d 1,000 a n;,p; %ae 14,'~ POINT NO. Test Data FLOWING (Automatic) Q, Mcf/d BCPD BWPD FTP, Psia HT, °F BHP, Psia COMMENT SHUT-IN 0 0 0 1,405 50 1,539 SIBHP 1 714 0 0 337 80 365 _ 2 695 0 0 381 82 412 3 643 0 0 460 78 498 4 - 541 0 0 587 76 636 - ~ - These results were prepared using Reservoir Solutions Software. This is not Ryder Scott work product. i • AURORA GAS, LLC WELL TEST REPORT fi5 WELL: 3 Mite Creek No..ix2 Date: 5/3/2006 •ine n~ LOWER PERFS (BELOW BOTTOM PACKER) 3507.1892' 4-POINT TEST (NOTE: vent from lar~r to smaper dwke to achieve stable rates? (`Mkn Parlor Al d5 ,.,..w, . DATE TIME 5/3/2006 .......,......~ ......... Acmnn PERFS .... T PRESS SPYDR, PSIA .___._. wH TEMP d F CHOKE /64" SEP PRESS i ---_-__ - --. ORI STATE blue . FK:E METE RIFF red R TEMP d F METER FACTOR RATE Q MCF/D CUM VOL MCF 9:10 AM to Time 1405 1168 42 14 700 6.8 1 5.4 31.45 9:25 1107 42 14 720 1.6 6.9 52 347.208. 9:40 1075 14 720 1.3 6.7 62 273.929 9:55 10:10 Choke Freei 1060 939 14 18 700 680 1.5 3.1 6.5 6.6 70 70 306 643 10:25 840 20 310 6.2 4.4 7B 857 10:40 715 20 310 4.4 6.8 76 940 10:~ 4~ 20 310 4.4 7.8 79 1079 11:10 11:2 393 20 ZO 310 280 4.4 4.2 6.8 5.8 76 80 940 766 11:40 11:55 320 340 20 20 280 280 4.2 4:2 5.4 5.5 80 ~ 713 714 12:10 344 20 280 4.2 5.5 SO 714 12:25 12:40 12:55 dose drake to 18 341 338 337 20 20 20 280 280 280 4.2 4.2 4.2 5.5 5.5 5.4 80 80 82 714 714 714 1 13:90 3:25 366 18 1 280 4.2 4.25 5 .1 82 82 680 881 s:t;40 37fl 18 300 4.25 5.15 82 688 9 3?,gi 79 18 300 4.25 5.2 82 695 . 375 18 300 4.25 53 82 695 14:15 384 18 31%7 4.25 5.2 82 695 944? 384 18 300 4.25 5.2 82 895 (~- 14:55 381 18 300 4.25 5.2 82 895 2 15:9f1, c4osedwketu1615t3 4a2 1s 2so 4.4 a.2 6z 581 :5.23 442 16 300 4.5 4.3 82 608 3.4{3 PM 454 16 300 4.4 4.8 82 31.45 636 ;5;55 458 18 310 4.4 4.85 62 643 ;6.ifli -:_ .__~~~ .~.._ .._-. 18 31L3 4.4 4.65 80 843 16:25 48Ci 18 310 4.4 4.65 79 643 16:4fl 480. 16 310 4.4 4.65 78 843 16:55 1849 dose ~ 14 512 1d 280 4 3 80 377 17:101 818 14 2~ 4 1.5 80 1~ I 17:25 684 _ _ . __ 14 _ 2~ 4 1.5 - - ~ - 188 17:40 696 - _ _ 14 4 1 5 ~ 188 1735 E309 14 33fl 4.S 82 72 896 18:10 7iJ8 14 330 4.4 5.8 70 802 9Q 25 657 14 305 4 5.4 72 879 ~ 18,40 s 18:55 . - 809 595 14 14 280. 280 4.15 4.2 4.8 4.6 74 74 639 607 79.10 ' 584 t4 280 42 4.6 75 607 1L?25 579 14 290 43 4.8 75 ~7 '!940 . 575 14 4.2 4.6 75 807 19:55 - 572 14 280 42 4.8 76 6537 20:10 ~ ( ~ 570 14 ~ ~ 280 4 2 4.6 76 607 _ 2015 -- - _-_ _ 5fi9 ,_ ~ 14 260 4.2 4,4 76 589 I 7t34tt 568 74 280 4? 4.a 76 589 70 tfi 566 14 760 4.2 4.4 76 581 ,__.__x[90 _ ____--- I _,______ _-._-~7 __.~___~ ---14 280 4.2 4.4 78 581 I 21:25 572 14 280 4.2 4.4 76 ~ 581 ~ 21:4!} 589 . 14 ' 260 4.2 4.3 76 567 ~_ 21:55 r~grj 14 280 4.2 4,3 78 567 2? 90 587 14 28G 4.2 4.1 76 - -.._31_45 54i i i ' 22:25 ' 397 9a 280 42 4.1 _ 78 541 za:25 istu~tinwen 567 ~ y u26 2z:a7 609 szfi ~ ~ { 22:29 . 646 6 j 2a~30 1 I 666 1 I I i ~ I I 1 I a2 s5 224a ~ - - _ -- - - 767 84fl _ -- 1 ~___ _~ ___. - --- - ~ -- _ 1 . I i 1 __ 22.45 902 22:50 958 .. L_ 22:55 ---, 1. --- 1002 1_ 1---- - ~--- _ ._ 1~-- I 1 I 23:00 • 1041 3 _ ~a97~ I iF1NAL SITP ~ ~ i404 9 I I J~ ] 51 JI ~ I i ;t Point nd Point rd Past uh Pc~n± • STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION COMMISSION GAS WELL OPEN FLOW POTENTIAL TEST REPORT 1a. Test: ~ Initial Annual Special 1b. Type Test: Stabilized Non Stabilized ~ Multipoint ^ Constant Time ^ Isochronal ^ Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Aurora Gas, LLC 24-Nov-05 205-143 3. Address: 6. Date TD Reached: 12. API Number: 1400 West Benson Blvd., Suite 410, Anchorage AK 99503 November 6, 2005 50- 283-200116 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 679' FNL, 273' FEL, Sec 35, T13N, R11 W, SM 325' Three Mile Creek Unit #2 Top of Productive Horizon: 8. Plug Back Depth(MD+TVD): 14. Field/Pool(s): 221'FSL 427' FEL, Sec 27, T13N, R11 W, SM 5,225' MD 4,810' TVD Three Mile Creek Unit Total Depth: 9. Total Depth (MD +TVD): 671' FSL, 777 FEL, Sec 27, T13N, R11W, SM 5,305'MD 4,890' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 2$6553 y- 2625014 Zone- 4 Unit Operating Agreement ADL 388233 TPI: x- y- Zone- 16. Type of Completion (Describe): Total Depth: x- y- Zone- Multi-packer Selective 17. Casing Size Weight per foot, Ib. LD. in inches Set at ft. 19. Perforations: From To 5-1/2" 15.5# 4.95 5,270' 2,192'-2,112, 2,332'-22252' 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. 2-7/$" 6.5# 2.441 3,495' 20. Packer set at ft: 21. GOR cf/bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): 2,128' NA None 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): 0 Tubing ^ Casing 65 F° 880 psia @ Datum 2,232' TVDSS 15.052 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO2: % N2: % H2S: Prover: Meter Run: Taps: 2,232' 1,985 0 1.05 0 Daniel Sr. 4.016 Flange 26. FLOW DATA TUBING DATA CASING DATA No. Prover Choke Line )( Orifice pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow Size (in.) Size (in.) psig Hw F° psig F° psig F° Hr. 1. 4 X 1 720 78 720 0 1.5 hrs. 2• 4 X 1 670 74 670 0 1.5 hrs. 3. 4 X 1 615 68 615 0 1.25 hrs. 4. 4 X 1 566 66 566 0 1.5 hrs. 5. )( N Basic Coefficient 24 H h~ Pressure Flow Temp. Gravity Factor Super Comp. Rate of Flow o. ( - our) Pm Factor Fg Factor O~ Mcfd Fb or Fp Ft Fpv 1. 31.45 Calculated using Daniel Sr. 576 2. 31.45 Orifice Meter Readings 784 3. 31.45 969 4. 31.45 1,107 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 2. 3• Critical Pressure 4• Critical Temperature 5. Form 10-421 Revised 1/2004 CONTINUED ON REVERSE SIDE Submit in Duplicate Pc 841 pct 707,281 Pf 880 p{~ 774,400 No. Pt Pte Pct-Pt2 P~' P~ Pcz-Pw2 Ps Ps2 Pf2-Ps2 1. 720 518,400 188,881 752 565,504 208,896 2. 670 448,900 258,381 700 490,000 284,400 3. 615 378,225 329,056 643 413,449 .360,951 4. 566 320,356 386,925 592 350464 423936 5. 15. AOF (Mcfd) 1,950 Remarks: All flows calculated using Ryder Scott Software. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed ~ ,- Title Mgr. Engineering & Prod. Ops 0.925528 Date 23-May-07 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp .Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= ~ dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia O Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 1/2004 Side 2 +.,--.. Ryder ticott WELL NAME: THREE MILE CREEK UNIT NO. 2 ', .,,,,,.~ Reser~ oir FIELD: THREE MILE CREEK UNIT Solutions LOCATION: WEST 51DE OF COOK INLET, ALASKA -_ (Public) RESERVOIR: BELUGA--UPPER COMPLETION --2192-2272' ~,,_-~°' ~:~~ 1,000 - m- -- - - BOTTOMHOLE TEMP, °F: 65 SOUR GAS MOLE -- _ _ GAS GRAVITY: 0.5E0 Nz 1.05 ___ _ ; Hz0 GRAVITY, yW_ 1.020 COz 0.00 ~ -- COND. GRAV., API: HZS 0.00 TVD, FT: 1,985 - _ MEAS. DEPTH, FT: 2,232 Options Cond. Correl. (Y/N): - -- N - ^ Check, If Injection Well Corrected* Tc, °R: 343.50 Corrected" Pc, Psia: _ 671.86 ^ Smooth Pipe Roughness Pressure Base, Psia: 14.650 TUBING ID, IN.: 2.875 * Wichert-Aziz correction for contaminants, if any RESULTS AOF, Mcfld: 1,950 ............... C s 0.006913 n: 0.925457 I .~_ a 700 POINT NO. Test Data FLOWING (Automatic) Q, cf/d BCPD BWPD FTP, Psia HT, °F BHP, Psia COMMENT SHUT-IN 0 0 0 841 50 880 SIBHP 1 576 0 0 720 78 752 2 784 0 0 670 74 700 3 969 0 0 615 68 643 4 1,107 0 0 566 66 592 These results were prepared using Reservoir Solutions Software. This is not Ryder Scott work product. 1,000 - ~. ~ n:v date, Mcfld • • AURORA GAS, LLC WELL TEST REPORT #b Well: Three Mile Creek #2 UPPER PERFS 2192-2212' & 2232-2272' Date: 5!25/2008 Long-term SITP was 841 psi (after opening sleeves and allowing to stabilize on 5/21/06) DATE ACTNITY T PRESS WH CHOKE SEP ORIFICE METER METER RATE CUM TIME PERFS SPYDR, PSIA TEMP d F _ /64" PRESS i STATIC blue DIFF red TEMP reen FACTOR 1.0" late Q MCF/D VOL MCF 12:10 to flare 833 ovemi ht 12 500 31.45 12:15 712 86 12 580 S.2 3 31.45 584.97 12:30 716 82 12 580 6.1 3 31.45 575.54 12:45 718 80 12 570 6.1 3 31.45 575.54 1:00 719 80 12 580 6.1 3 31.45 575.54 1:15 720 79 12 580 6.1 3 31.45 575.54 1:30 720 78 12 580 6.1 3 31.45 575.54 1:45 72 78 12 580 6.1 3 31.45 ST5.54 1:48 to 14 14 2:00 684 76 .. 14 580 _. 6.7 3.7 31.45 ._. 779.85 2:15 683 76 . 14 590 8.7 3.7 31.45 779.65 2:30 682 76 14 580 6.2 3.8 31,45 740.96 2:4 14 20 4. 31.45 84.36 3:00 670 74 14 520 5.8 4.3 31.45 784.36 3:15 670 74 14 520 5.8 4.3 31.45 784.38 3:30 B70 74 14 520 5.8 4.3 31.45 784:36 :45 670 74 14 520 5.8 4.3 31 A5 784.36 3:49 b 16 16 4:00 617 71 16 460 5.5 5.7 31.45 985.96 4:15 616 70 16 460 5.5 5.7 31.45 985.98 4:30 618 70 16 460 5.5 5.6 31.45 968.66 4:45 616 70 18 480 5.5 5.6 31.45 968.66 5:00 615 70 16 460 5.5 5.6 31.45 968.66 5:15 615 68 16 460 5.5 5.6 31.45 988.66 '1 n to 18 18 5:30 566 6$ 18 440 5.5 8.6 31.45 1141.$4 5;d5 567 88 18 450 5.4 6.fi 31.45 1120.88 6:00 567 68 18 450 5.4 8.6 31.45 1120.$8 6:15 5~ 68 18 450 5.4 8.6 31.45. 1120.88 6:30 586 68 18 450 5.4 6.6 31.45 1120,88 8:45 568 68 18 460 5.5 8.4 31.45 1107.04 7:00 567 88 18 460 5.5 6.4 31.45 1107.04 7:15 567 66 18 460 5.5 $.4 31.45 1107.04 point Point Point ?Dint 809 `~j `~ BOTTOMHOLE TEMP, °F: GAS GRAVITY: H2O GRAVITY, yW: COND. GRAV., °API: TVD, FT: MEAS. DEPTH, FT: Cond. Corral. (YIN): Corrected* Tc, °R: Corrected* Pc, Psia: (Protected) +o.~ 92 SOUR GAS MOLE 0.560 NZ 1.00 1.040 CO2 0.05 H2S 0.00 2,742 ° x 2,742 Options N ~ ~,ooo ^ Check, If Injection Well 343.45 a 671.90 ^ Smooth Pipe Roughness a • • Aurora Gas, LL www.aurorapower.com December 20, 2006 John K. Norman, Chairman State of Alaska Oil and Gas Conservation Commission 333 W. 7~' Avenue, Suite 100 Anchorage, AK 99501 Re: Report of Sundry Operations (AOGCC form 10-404) Three Mile Creek #2 Well Production from Additional Interval Dear Mr. Norman: ~G1.~~~ V ~L.i DEC 2 ~. 2006 Alaska Oil & Gas Cons, Commission Anchorage Aurora Gas, LLC (Aurora) hereby submits for your review and approval the report of sundry well operations which allows production from a certain stratigraphic interval for the Three Mile Creek #2 well in the Beluga Gas Field on the west side of the Cook Inlet. Attached are AOGCC Form 10-404, Slick-Line Procedures for Well Operations, Daily Report, Well Configuration Diagram, and down-hole equipment data. Specifically, Aurora has performed the following operations: - Opened the sliding sleeve at 2,290' MD directly above the packer at 2,475' MD allowing additional production from the perforations at 2,192' to 2,212' MD and 2,232' to 2,272' MD. Should questions arise in connection with this request, please contact Mr. Ed Jones in the Houston office at (713) 977-5799. Respectfully Submitted By, ~c~~ Bruce D. Webb Manager, Land and Regulatory Affairs attachments ~'' ~i3 2500 Citywest Blvd., Suite 2500 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 STATE OF ALASKA ALASf~IL AND GAS CONSERVATION COMMI~N REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ~ open tubing , Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ sleeves Change Approved Program ^ Operat. Shutdown ^ Perforate ^ Re-enter Suspended Well ^ O erator 4. Well Class Before Work: 5. Permit to Drill Number: e AURORA GAS, LLC N Development Q Exploratory^ 205-143 3. Address: 2500 City West Blvd., Suite 2500 Stratigraphic^ Service^ 6. API Number: Houston, TX 77042 50-283-20116-00 7. KB Elevation (ft): 9. Well Name and Number: 310' AMSL (DF) Three Mile Creek #2 8. Property Designation: 10. Field/Pool(s): / State of Alaska ADL 388233 ~ Three Mile Creek Beluga vas rield • Bi.l d ~.Ndet- ye 11. Present Well Condition Summary: ~ 'm~ ~ ~ S3o~ ~~ I •~ p7 ~ : . Total Depth measured feet Plugs (measured) none true vertical 4 ggg feet r ~ ? Junk (measured) none ~~ ~.z.o S22S Effective Depth measured fig' feet true vertical 4,822 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 13-3/8" 80' 80' n/a n/a Surface 1,021' 9-5/8" 1,021' 962' 3,520 psi 2,020 psi Intermediate Production 5,299' 5.5" 5,299' 5,299' 4,270 psi 3,120 psi Liner Perforation depth: Measured depth: 2,192' - 4,892' True Vertical depth: 1,948' - 4,480' Tubing: (size, grade, and measured depth) 2-7/8" J-55 3,496' Packers and SSSV (type and measured depth) HES PHL 2,150' MD 2,475' MD 3,475' MD 12. Stimulation or cement squeeze summary: Intervals treated (measured): n/a ~, Treatment descriptions including volumes used and final pressure: n/a 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 320 3 70 210 psi Subsequent to operation: 0 616 3 70 210 psi 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run n/a Exploratory^ Development 0 Service ^ Daily Report of Well Operations Dec. 17, 2006 16. Well Status after work: Oil^ Gas ^~ ~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 306-307 Contact J. Edward Jones, V.P., Engineering and Operations (713) 977-5799 By Bruce D. Webb Title Manager, Land and Regulatory Affairs Signature ~~ i:~ l~/~,~js Phone (907) 277-1003 Date 12/20/06 ~' 2 ' ~7 Form 10-404 Revised 04/2006 ~4~ ~~ Submit gi I O ly .~~~~ • AURORA GAS, LLC • SLICK-LINE PROCEDURES THREE MILE CREEK 2 DECEMBER 2006 THREE MILE CREEK #3 CURRENT CONDITONS: FTP>330 psi (could have SITP as high as 800 psi). TUBING: 2-7/8". 6.5 # with Sliding Sleeves at: 2081' (packer fluidclosed) (all sliding sleeves are HES "XD") 2175' (now closed) (Open downward) 2290' (now closed) 2514' (open as of 10/16/06) 3148' (open as of 10/16/06) (all w/ X profiles above the ports) and w/ XN landing nipple at 3498' (open) Packers at 2150', 2475', and 3475' (see attached well bore and completion diagrams) NOTE: Well is moderately SUMMARY OF PLAN: Run gauge ring to check for fluid level. Confirm that sleeves at 3475' and 2514' are open. Open sleeve at 2290'. Open well to flow. Swab well in if it won't flow. PROCEDURE: 1) RU Pollard on Three Mile Creek #2 (no well house in place). RU lubricator on tree cap (2-7/8" EUE box connection). AG Operator is to be on location to open/close any valves other than on tree. Open well to pressure test lubricator-have pressure gauge on lubricator. Maintain pressure on well as high as possible. 2) RIH with 2-1/8" (or smaller) gauge ring, slowly. Determine fluid level. Stay above XN landing nipple at 3498'. 3) Confirm that sliding sleeves at 3148' and 2514' are open. 4) Open HES XD sliding sleeve (open downward) at 2290'. (Sleeve at 2175' is to remain closed). 5) Confirm that sleeve at 2081' is closed. 6) POH and RD and release Pollard. Turn well over to AG Operator. 7) Flow well thru facility-gauge all water tanks to get initial levels. Record gas rates also, and monitor closely for next few days. Ed Jones (12/ 12/06) • • Aurora Gas, LLC DAILY REPORT Depth: Date: 17-Dec-O6 Company: . Aurora Gas, LLC AFE # SLWO121706 24 Hour Progress: 00' Rig: Pollard Wireline Report # 1 Last Casing: Well: TMCU2 Days Since Spud RKB/Casinghead: Hole Section: Bit # BHA # 1 BHA #2 Total Depth: Serial # Hole Size: Size Depth In: Make Depth Out: Type Drl hrs: . Depth In Cir hrs.: Depth Out Cum. Drl. Hrs: Hours Cum. Cir. Hrs: Nozzles (TFA) PU Weight: ROP Down Weight: T/B/G Rot Weight: Mud Type WOB Rotating: Weight Rotary Speed: Viscosity Rotary Torque: PV/YP Flow Rate: PH PSI off BTM: Water Loss PSI on BTM: Solid Content Sand Content Chlorides TD 0.00 TOTAL = 0.00 Weather- 25° w/Blowing Snow BOP Test: Next BOP Test: Operation details and comments Slow Pump Rate #1 MP From To Hours Depth MW SPM Pressure 6:00 8:00 2.00 Travel to TMCU2 8:00 8:30 0.50 Wait on Operator to Arrive @ Location 8:30 10:30 2.00 Rig Up Pollard on Well-RIH w/ 2.29 GR to 3,498' Slow Pump Rate #2 10:30 11:30 1.00 RIH w/ Shifting Tool & Confirm Sleeve @ 3,148 Is Open Depth MW SPM Pressure POH to 2,514' & Confirm Sleeve Open-POH to 2,290' & Open Sleeve-POH 11:30 1:30 2.00 RIH w/Closing Tool & Confirm Sleeve @ 2,081' Closed Fuel Used: RD & Release Pollard-Turn Well Over to Production Fuel Received: SITP=700 psi Fuel on Location: Daily Total: $4,860 Previous Total: $7,456 Cum Total: $12,316 06:00 Update: 24 Hour Forecast: Fairweather Supervision-$1,500 Pollard Wireline-$2960 Transportation-$400 Incidents: Company Man Backed Into Door on Pollard PU PersonneF On Location: FWX-1 Pollard-3 Total Hours: 7.50 Operator Reps: Jack McDade ,. r g Displaced 2 7/8" x 5.5" annulus and tubing w/ 1%- 2% inhibited brine • 13 3/8" 72# H-40 conductor drilled to 80't 2 7/8", 6.5#, 8rd EUE tubing 12 1/4" hole drilled to 1021' MD , 975 TVD. 9.625" 36# BTC J-55 Casing to 1019" MD, Cemented with 14.5 ppg Gas-Block Type I cement. slurry system to surface UPPER COMPLETION Perfs 2192-2212',2232-2272' (1948-2014'TVD) MIDDLE COMPLETION Perfs 2502-2512', 2535-2550', 2683-2703', 3104-3114' (2204-2744' TVD) LOWER COMPLETION Perfs 3507-3537', 3744-3754', 3895', 4135-4150', 4427- 4771-4781',4882-4892' (3118-4480' Three Mile Creek Unit No. 2 Final. Well Configuration hiding Sleeve at 2081' 'acker @ 2150' MD hiding Sleeve at 2175' >liding Sleeve at !290' 'acker @ 2475' MD >liding Sleeve at '514' >liding Sleeve at 3148' 'acker @ 3475'MD {N Landing Nipple at 3498' 5#, J-55 casing set MD Cemented with Class G t 2 A~ } ' HAL ~ I B RTO N ROB WARREN / COMPLETIONS SPECIALIST PRUDHOE BAY/COOK INLET ALASKA STERLING, ALSKA (907} 260-3246 PRUDHOE BAY, ALASKA (907) 670-5953 3 Customer Aurora Gas, LLC Customer Representative Well Three Mile Creek# 2 Field Tyonek Date Casing Size Casing Weight Casing Grade From To Tubing Size Tubing Weighs Tubing Grade Tubing Thread Casing Size Casing Weight Casing Grade From To Tubing Size Tubing Weight Tubing Grade Tubing Thread Casing Size Casing Weight Casing Grade From To Pick Up Weight Slack off Weight Block Weight Weight on Locator 4 Max. Deviaton Deviation Thru Perfs KOP RKB Original RT-TS PBTD Completion Fluid BHT BHP Perforations s Item # Description I.D. O.D. Length Depth 14 MULESHOE ENTRY GUIDE 2.441 3.690 1.35 3495.95 2.7/8" x 4' PUP JOINT 2.441 3.690 4.23 3491.72 6 13 2 7/8" HES XN LANDING NIPPLE 2.313" PKG BORE 2.205 3.690 1.35 3490.37 2 7/8" x 6' PUP JOINT 2.441 3.690 6.15 3484.22 12 SEAL BORE x 2 7/8" TUBING X-OVER 2.441 4.500 1.35 3482.87 11 3.00" SEAL BORE EXTENTION 3.000 3.780 4.41 3478.46 10 5.5" x 3.00" HES BWD PERMANENT PACKER 3.000 4.540 3.46 3475.00 ABOVE RUN AND SET PRIOR TO REMAINING COMP. 9 3.00" SEAL ASSY W/STRAIT SLOT LOCATOR 2.330 3.760 7.41 3475.12 ~ 2 7/8" x 8' PUP JOINT 2.441 3.690 8.34 3466.78 JTS #1-10 2 7/8" EUE TUBING (10 JTS) 2.441 3.690 310.49 3156.29 2 7/8" x 4' PUP JOINT 2.441 3.690 4.15 3152.14 8 2 7/8" HES XD SLIDING SLEEVE ASSY# 1 2.313 3.920 4.04 3148.10 8 2 7/8" x 6' PUP JOINT 2.441 3.690 6.17 3141.93 JTS #11-24 2 7/8" EUE TUBING (14 JTS) 2.441 3.690 435.53 2706.40 2 7/8" BLAST JOINT (30') 2.420 3.750 29.85 2676.55 JTS #25-28 2 7/8 EUE TUBING (4 JTS) 2.441 3.690 124.37 2552.18 0 2 7/8" BLAST JOINT (30') 2.420 3.750 29.85 2522.33 2 7/8" x 4' PUP JOINT 2.441 3.690 4.22 2518.1 1 7 2 7/8" HES XD SLIDING SLEEVE ASSY# 2 2.313 3.920 4.04 2514.07 2 7/8" x 6' PUP JOINT 2.441 3.690 6.15 2507.92 JT #29 2 7/8 EUE TUBING (1 JT) 2.441 3.690 31.16 2476.76 2 7/8" x 4' PUP JOINT 2.441 3.690 4.20 2472.56 11 6 5.5" x 2 7/8" HES PHL PACKER ASSY# 1 2.360 4.700 4.94 2467.62 2 7/8" x 6' PUP JOINT 2.441 3.690 6.15 2461.47 t2 JTS #30-34 EUE TUBING (5 JTS) 2.441 3.690 155.33 2306.14 2 7/8" x 8' PUP JOINT 2.441 3.690 8.24 2297.90 2 7/8" x 4' PUP JOINT 2.441 3.690 4.10 2293.80 5 2 7/8" HES XD SLIDING SLEEVE ASSY# 3 2.313 3.920 4.04 2289.76 13 2 718" x 6' PUP JOINT 2.441 3.690 6.05 2283.71 ! 2 7/8" x 10' PUP JOINT 2.441 3.690 10.10 2273.61 2 7/8"BLAST JOINT (30') 2.420 3.750 29.85 2243.76 JT #35 2 7/8 EUE TUBING (1 JT) 2.441 3.690 31.10 2212.66 t4 2 7/8" BLAST JOINT (30') 2.420 3.750 29.85 2182.81 2 7/8" x 4' PUP JOINT 2.441 3.690 4.16 2178.65 4 2 7/8" HES XD SLIDING SLEEVE ASSY# 4 2.313 3.920 4.04 2174.61 2 7/8" x 6' PUP JOINT 2.441 3.690 6.11 2168.50 JT #36 2 7/8 EUE TUBING (1 JT) 2.441 3.690 31.18 2137.32 GO To NEXT PAGE • • 2 HA~ ~ ~ B ~ RTO N ROB WARREN / COMPLETIONS SPECIALIST. PRUDHOE BAY KOOK INLET ALASKA 3 STERLING, ALSKA (907) 260-3246 PRU DHOE BAY, ALASKA (907) 670-5953 Customer Aurora Gas, LLC Customer Representative Well Three Mile Creek# 2 Field Tyonek Date Item # Description I.D. O.D. Length Depth 2 7/8" x 4' PUP JOINT 2.441 3.690 4.14 2133.18 a 3 5.5" x 2 7/8" HES PHL PACKER ASSY# 2 2.360 4.700 4.94 2128.20 2 7/8" x 8' PUP JOINT 2.441 3.690 8.33 2119.87 JT #37 EUE TUBING (1 JT) 2.441 3.690 31.00 2088.87 s 2 7/8" x 4' PUP JOINT 2.441 3.690 4.16 2084.71 2 2 7/8" HES XD SLIDING SLEEVE ASSY# 5 2.313 3.920 4.04 2080.67 2 7/8" x 6' PUP JOINT 2.441 3.690 6.12 2074.55 JTS #38-103 EUE TUBING (66 JT) 2.441 3.690 2049.73 24.82 s 2 7/8" x 4' PUP JOINT 2.441 3.690 4.30 20.52 -~ 2 7/8" x 4' PUP JOINT 2.441 3.690 3.80 16.72 _ t ~ _, 1 TUBING HANGER (VETCO GRAY) 0.48 16.24 RKB = 15' 15.00 1.24 PUPS FOR LANDING HANGER WILL ~ HAVE TO BE ADJUSTED AT THAT TIME 8 0 1 11 12 13 14 DIMENSIONAL DATA SHEET AURORA GAS, LLC WELL: TMCU #2 AFE: TMC2-DRLG-05 RIG: AURORA WELL SERVICE DESCRIPTION LENGTH O.D. I.D. DRIFT TEST PSI THREADS PART NUMBER SLIDING SLEEVE ASSY# 1 _ I ~ 2 7/8" 6.5# L-80 PUP JOINT 6.17 3.690 ~ 2.441 ' 2.310 i 5000 EUE 8rd BOX x PIN N/A ~ -- - -- - ~-- - 2 7/8 HES XD SSD 6.5# 9CR 2.313 BOREI 4.04 li 3.920 2.313 2.310 ~ _ 5000 EUE 8rd BOX x PIN 100159432 2 7/8" 6.5# L-80 PUP JOINT 4.15 3.690 2.4 1 i - - I ----- . __- ~- -.. --~ EUE 8rd BO_X x PIN N/A TOTAL LENGTH 14.36 SLIDING SLEEVE ASSY# 2 ', - _ _ ~I--- { _ __ _ - _ - - 2 7/8" 6.5# L-80 PUP JOINT 6.15 ', 3.690 2.441 _ 2.310 5000 ' EUE 8rd BOX x PIN N/A 2 7/8 HES XD SSD 6.5# 9CR 2.313 BORE 4.04 3.920 i 2.313 2.310 - 5000 i_ EUE 8rd BOX x PIN 100159432 2 7/8" 6.5# L-80 PUP JOINT _ 4.22 ~ 3.690 2.441 2.310 5000 ~ EUE 8rd BOX x PIN N/A - __ I T ~ _ _ - - -_ TOTAL LENGTH '~ 14.41 RETRIEVABLE PACKER ASSY# 1 I i 2 718" 6.5# L-80 PUP JOINT 6.15 ' 3.690 ~ 2.441 I _2.310 i 300 ~' EUE 8rd BOX x PIN N/A 5.5" x 2.875" HES PHL PACKER 4.94 ', 4 700 II 2.360 2.310 300 EUE 8rd BOX x PIN 70850 2 7/8" 6.5# L-80 PUP JOINT I 4.20 3 690 2.441 -- 2.310 __ 300 __ EUE 8rd BOX x PIN - -_ - N/A TOTAL LENGTH 15.29 ~'~ j ~ SLIDING SLEEVE ASSY# 3 I ~ ~ 2 7/8" 6.5# L-80 PUP JOINT 6.05 , 3.690 2.441 II 2.310 j 5000 EUE 8rd BOX x PIN N/A - 2..7/8 HES XD SSD 6.5# 9CR 2.313 BORE 4.04 _ 3.920 -- ', 2.31.3 i - _2.310 j ~ 5000 i -_ EUE 8rd BOX x PIN - 100159432 2 7/8" 6.5# L-80 PUP JOINT 4.10 ~ 3.690 ' 2.441 2.310 ~ , 5000 ~ EUE 8rd BOX x PIN N/A - ~ - - - _ _ _ _ _ _ _ _ TOTAL LENGTH 14.19 ' i I SLIDING SLEEVE ASSY# 4 - ~ _ , - ~ -. - -- _ - -- - - _ -- - - -- - 2 7/8" 6.5# L 80 PUP JOINT 6.11 j 3.690 I ~i 2.441 2.310 - 5000 EUE 8rd BOX x PIN N/A 2 7/8 HES XD SSD 6.5# 9CR 2.313 BOREI 4.04 ~ 3.920 2.313 it 2.310 ~ 5000 i EUE 8rd BO_X x PIN _ 100159432 2 7 6.5# L-80 PU J INT - 4.16 3.690 I - 2.441 ~ _ 2.310 -- 5000 i EUE 8rd BOX x PIN ~ _ - - _ _ N/A - TOTAL LENGTH 14.31 I • • Page 2 of 22 DIMENSIONAL DATA SHEET AURORA GAS, LLC WELL: TMCU #2 AFE: TMC2-DRLG-05 RIG: AURORA WELL SERVICE DESCRIPTION LENGTH O.D. I.D. DRIFT TEST PSI THREADS PART NUMBER RETRIEVABLE PACKER ASSY# 2 ~ I I -_ _ - 2 7/8" 6.5# L-80 PUP JOINT 8.33 3 690 2.441 2.310 300 ' EUE 8rd BOX x PIN NIA -_ - ~ _ - II -- -- i - _ . 5.5" x 2.875" HES PHL PACKER 4.93 4.700 2.360 2.310 I 300 I EUE 8rd BOX x PIN 70850 -_ __ __ - -- 2 7/8" 6.5# L-80 PUP JOINT 4.14 3 690 Iii 2.441 ~ 2.310 i 300 EUE 8rd BOX x PIN N/A TOTAL LENGTH 17.45 SLIDING SLEEVE ASSY# 5 li ~ -- __ 2 718" 6.5# L-80 PUP JOINT 6.12 I 3.690 2.441 2.310 i 5000 EUE Srd BOX x PIN N/A 2 7/ XD .5# 9 R R I 4.04 2.310 5000 EUE Srd BOX x PIN 100159432 3.920._. 2.313 _. 2 7/8" 6.5# L-80 PUP JOINT I - 5000 i~ EUE Srd BOX x PIN N/A 4.i6 _ 3.690.- ..2.441 2310 --, -- - -+-- _-- _ ___ TOTAL LENGTH 14.32 I X NIPPLE 2 7/8" HES X NIPPLE 2.313" PKG BORE '' I ?3 3.690 2.313 2.310 5000 EUE Srd BOX x PIN 100005672 TOTAL LENGTH 1..23 SHADED ASSY'S WERE MADE UP FOR, BUT NOT RUN ON THIS WELL. XD SSD'S REQUIRE A 142B0 (SELECTIVE) SHIFTING TOOL TO SHIFT. THEY WERE SHIFTED DOWN TO OPEN AND BACKUP TO CLOSE IN SHOP PRIOR TO PRESSURE TESTING. PHL PACKERS REQUIRE 3500psi (TUBING) TO SET AND 36,4001bs OVER PULL TO RELEASE (8 SCREWS). ALSO ON THE GUN SKID [S: BALL/ROD ASSY - ON/OFF TOOL -COLLET MULE SHOE (SEAL ASSY) BWD PKR O-RINGS - BWll SHEAR PINS (7,600# EA.) -PHL RELEASE AND SET SCREWS -BWD SETTING KIT - 1-5/16" BALL -BWD PACKER MEASURED BY: DATE: RECEIVED BY: SALES ORDER NO.: ',PHONE NO. ROB WARREN 11/10/05 4055151 670-5953 • Page 3 of 22 s~ / ~~ T~ ~' X CERTIFIED MAIL RETURN RECEIPT REQUESTED December 6, 2006 ,.: D~~ ~ .~ ~aQ~ Alaska Oil ~ Gas Cons. ~nchora®a Ca--tmissi~;r Mr. Bruce D. Webb Aurora Gas, LLC 250.0 City West Blvd., Suite 2500 Houston, TX 77042 RE: Three Mile Creek Unit Termination Dear Bruce: V t" V This letter will serve as our written acknowledgement of the letter addressed to Cook Inlet Region, Inc. (CIRI) and the Division of Oil and Gas (Division) dated October 27, 2006 in which Aurora Gas, LLC (Aurora) and Forest Oil Corporation (Forest) requested the termination of the Three Mile Creek Unit (TMCU) effective November 1, 2006. It is my understanding that your request to voluntarily terminate the unit is based on unfavorable reservoir characteristics and drilling results which do not provide the justification necessary from your perspective to complete the work commitment to sustain the unit. Since the approval of the jointly managed TMCU by the Alaska Department of Natural Resources (DNR) and CIRI on January 30, 2004, Aurora has drilled and completed two natural gas wells located on ADL 388233 and built processing facilities and a sales pipeline. Your letter also indicates that Aurora plans to continue producing gas from the lease and you have requested the unit plans of development and operations be approved for lease production and operations. Consistent with Article 15.4 of the unit agreement as well as the DNR letter to Aurora dated November 16, 2006, the termination of the unit requires the concurrent approval of the DNR and the President of CIRI. CIRI notes the termination will have the following results: CIRI lease C-061394 currently held by unit/production wilt expire upon termination of the unit since the lease is outside its primary term. 2. CIRI leases C-061502 and C-061506 currently held by unit/production will % continue to be effective on a lease basis through 12/31/06. 2525 "C" STREET, SUITE 500 ° P.O. BOX 93330 =ANCHORAGE, ALASKA 99509-3330 (907) 274-8638 `FAX (907) 279-8836 ~ Web Site: www.ciri.com • • Mr. Bruce D. Webb December 6, 2006 Page 2 of 2 3. Per the TMCU Agreement, Section 3.7, the Unit Operator (Aurora} shall have the rights to surface use that are granted in the respective lease(s)_ Additionally, Section 16.4 of the TMCU Agreement provides for the restoration and rehabilitation of the surface of the leases. Based on these sections in the TMCU Agreement as well as Section 21 of Lease C-061394, within one year after the termination of the unit, any continued use of surface estate by Aurora shall be subject to agreement between CIRI and Aurora in their sole discretion. CIRI hereby approves the termination of the TMCU effective November 1, 2006 subject to the following condition: CIRI requests the Department of Natural Resources continue to provide copies of any proposed plan of operations or plan of development for ADL 388233 to CIRI, Attention Land & Resource Department, simultaneous upon receipt of same from Aurora. This unit termination approval does not release Aurora from its obligations under-the TMCU Agreement and the individual CIRI leases, including its responsibility for well and facility abandonment and restoration as well as the unit and lease conditions related to - environmental matters. Sincerely, COOK INLET REGION, INC. Keith Sanders Sr. Vice President of Land & Legal Affairs For: Margaret L. Brown, President & CEO cc: Kevin Banks, Acting Director, DNR Brian Havelock, Natural Resource Specialist, DNR James D. Arlington, Forest Oil Corporation John K. Norman, AOGCC • • .:Aurora Gas, LLC www.aurorapower.com October 31, 2006 ,~.. ~_7 ~.~ .~„ r, ~^ Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7~' Ave., Suite 100 Anchorage, Alaska 99501 RE: Report of Sundry Well Operations Aurora Gas, LLC: Three Mile Creek Unit (PTD 205-143) Dear Commissioner Norman: Aurora Gas, LLC hereby submits its Report of Sundry Well Operations for the work performed in working over its Three Mile Creek Unit #2 (TMCU} gas production well in the TMC Beluga Gas Field on the west side of Cook Inlet. Please find enclosed the following information for your files: 1) Form 10-404 Report of Sundry Well Operations 2) Workover Operations Summary 3) Wellbore Diagram as completed (unchanged) If you have any questions or require additional information, please contact me at (713) 977-5799 or Ron Stadem at Fairweather at 907-343-0389. Sincerely, AURORA GAS, LLC e~ ~ ?~.~ ~~~ i r ,j J dward Jones ice President, Engineering and Operations enclosures cc: Mr. Ron Stadem -Fairweather Ms. Kim Cunningham-GIRT Ms. Kristin Dirks--ADNR-DOG Mr. Jim Arlington-Forest Oil 2500 Citywest Blvd., Suite 2500 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 STATE OF ALASKA ~ ; ~ :,~ '; ~ ~ u A OIL AND GAS CONSERVATION CO SION REPORT OF SUNDRY WELL OPERATtON~ ' ~~ 1. Operations Abandon Repair Well Plug Perforations Stimulate ~ Other Performed: Alter Casing ^ Pull Tubing^ Perforate New Pool ^ Waiver^ Time Extension^ Change Approved Program ^ Operat. Shutdown^ Perforate ^ Re-enter Suspended Wetl^ 2.Operator Aurora Gas LLC 4. Well Class Before Work: 5. Permit to Drill Number. , Name: Development (] Exploratory^ 205-143 3. Address: 1400 W. Benson Blvd, Ste 410 Stratigraphic^ Service^ 6. API Number: Anchorage, Alaska 99503 50-283-20116-00 7. KB Elevation {ft): 9. Well Name and Number. 310' AMSL Three Mile Creek #2 " 8. Property Designation: 10. Field/Pool(s): ADL-388233. TMC Beluga Gas Field - 11. Present Well Condition Summary: Tota- Depth measured 5,299 feet Plugs (measured) None true vertical 4,ggg feet Junk (measured) None Effective Depth measured 5,218 feet true vertical 4,822 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 80• 13-318" 80' 80' N/A N/A Surface 1021' 9-5/8" 1021' 962' 3,520 psi 2,020 psi Intermediate Production 5,299' 5.5" 5,299' 5,299' 4270 psi 3,120 psi Liner Perforation depth: Measured depth: 2,192' - 4,892' (treated only 2502-3114') True vertical depth: 1948-4480' (treated only 2204-2744") Tubing: (size, grade, and measured depth) 2-7/$" J-55 3,496' Packers and SSSV (type and measured depth) 2,150' 2,475' 3,475' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treated perfs at 2502-3114' Treatment descriptions including volumes used and final pressure 375 gal 10°~ acetic acid displaced to top pert w/ NH4CI water. Max-620ASIP-420 psi. SI ON. Pump 750 gal 10% Acetic acid w/ 1% HF acid, over displaced into perfs with 750 gal fine-stabilizing overflush-all w/ 25°~ methanol in NH4C{ base fluid. 380 IS4P. 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: p 100 SI Subsequent to operation: 388 ~ 230 Si 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run None Exploratory^ Development (] Service ^ Daily Report of Well Operations Attached 16. Well Status after work: Oil^ Gas [] WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 306-307 Contact Ron Stadem 907-343-0389 Printed Name J. Edward Jones Title Vice President, Engineering & Operations Signature Phone 719-977-5799 Date 10/31/2006 Nr °u. Form 04 Revised 04/2006 ~~' ~ ~/•?•UG Sub Origi al Only a~~~~ • • OPERATIONS SUMMARY Aurora Gas, LLC Three Mile Creek Unit #2 September 11, 2006 Mobilize BJ and Pollard to well site. RU Pollard and BJ. RIH w! GR to 3481' WL depth and attempted to set plug in X-nipple. Plug came out of hole w/ running tool RIH w/ profile brush. RIH wl LIB to clearly show top of prong-plug already in place. RIH and shift sleeves @ 2175' and 2,290' to closed position. Fluid packed tubing. RIH and shift sleeves @ 2,514' and 3,148' open. RD Pollard. Pumped first stage of acid job: 375 gal of 10% acetic acid w/ 25% methanol in ammonium chloride water base, displaced to top perf w/ 15 bbl. ammonium chloride water w/ 25% methanol. Pump at 1 BPM, max pumping pressure--620 psi. ISIP--420 psi. Return to camp. September 12, 2006 Pump second stage of acid job: 750 gal 10% acetic - 1% HF acid w/ 25% methanol in ammonium chloride water base, over displaced into perfs with 750 gal fines-stabilizing overflush (25% methanol, in ammonium chloride water base with BJ FSA-1 and Clay Master 5-C clay stabilizers and Inflo-102 surfactant), displaced with KCI water. Pump at 1 BPM, max PP-510 psi, ISIP-380 psi. (Total of 97.7 bbl liquid pumped into well). Shut in well. RU flow manifold and flow well back -flowing slightly. Begin swabbing of well (15 runs w/ various sized cups) Swab hanging up in tubing @ 47' requiring undersized cups. 15 bbl of total fluid recovered. September 13, 2006 Flow well to Aurora tank. Well had 475 psi SITP overnight. Dropped 4 soap sticks while flowing and then shut in for 30 minutes. Well flowed additional 15 bbls (30 bbls total). Turned well over to Operator w/ middle sleeves @ 2514' & 3148' open, PX plug and Prong in XN nipple @ 3490' and all other sleeves closed. September 28, 2006 Mave AWS #1 Rig onto location. Begin rigging up. September 29, 2006 Continue rigging up. RIH with swab. Swabbed hole w/ following results: #1 tag 550' pull from 1000' S bbls #2 tag 700' pull from 1400' 4 bbls #3 tag 900' pull from 1400' 3 bbls Well began to flow unloading 18 bbls of 8.4 ppg brine in 3 hrs (6 bph). Shut in well for 10 minutes -showing 110 psi. Dropped soap sticks and continued to allow to flow. September 30, 2006 Continue to flow well for 9 hours getting 3/4 bbl water. Swabbed three times returning 1.5, 1.5 and 3 bbls, respectively. Dressed oil saver and change swab cups. Pressure built to 650 psi. Swabbed another four times with no fluid recovery. Changed cups again. • • Swabbed eight more runs from 3400' - 3 bbls back. Shut-in with night-cap. 650 psi build-up. Flow over choke with Howco valve at gas buster holding 250 psi for 1 hour. Total fluid recovered (since 9/29}- 39 bbls, (since treatment about 69 bbl). October O 1, 2006 Shut in well -showing 500 psi. 2°d shut-in showing 700 psi. Swab and flow well for 2 runs tagging @ 2700 and pulling from 3400' -returns of l.5 bbls. RD swab and RU slickline. RIH and close sleeve @ 2514'. Sheer pin, closed S1Sv @ 2080', closed SISv @ 2174' (shallower sleeves apparently opened while swabbing with rig on 9/29 or 9/30). Flow well through gas buster through open sleeve at 3148' to unload 8,5 bbls. Shut in well. Fluid level @ 2995' w/ 22' sand on top of plug. Pressure built 200 psi in 6 minutes, 500 psi in 21 minutes, and 750 psi in one hour. Flow well thru production facility, stabilizing at about 500 mcfpd. - October 02, 2006 Well flowing to production (sales) facility at 251 mcfpd at 280 psi. SI. Bleed well down - unloaded 4 bbls of brine. RIH w/ swab but wouldn't go-too much gas. Rig down and move rig off location. Line up well to production facility and flow to sales. October O5, 2006 Well flowing from Middle Completion at 388 mcfpd at 230 psi to compressor and sales, RU Pollard slickline and RIH--closed sliding sleeve at 3148'. POOH. RIH w/ 1-3I4" baler and tagged fill at 3447, worked to 3452'. POOH. RIH w/ 2" baler and clean out to 3466'. RD for night. October 06.2006 RU slickline and RIH w/ 1-3/4" ball-bottom baler and clean out to 3488'. RIH w! 1-1/2" pulling tool to 3488'--could not latch. October 07, 2006 RIH w12" pump baler and cleaned out to 3488'. RIH w/ SS pulling tool and work- sheared. RIH w/ 2.25" DD baler and cleaned out to 3488'. RIH w/ 2" pump baler and clean out to 3488'. RIH w/ 2" SS pulling tool-no latch. POOH and added centralizer- RIH-no latch. RIH w/ 2" JDC w/ centralizer, latched and POOH w/ equalizing prong. RIH w/ 2-1/2" GS tool to 3490', latched and pulled plug body. RD slick line. Open well to production /sales thru facility (flowing only Lower Completion). October 16, 2006 RU slick line unit. Open sleeves at 3148' and 2514' (both for Middle Completion, to commingle w/ Lower Completion already open). RD slick line unit. Flow well to production facility-stabilized at 388 mcfpd at 260 psi, increasing to 475 mcfpd at 360 / psi on 10/24/06. I~ .~ Aurora Gas, LLC • Three Mile Creek Unit No. 2 Final Well Configuration Displaced 2 7/8" x 5.5" annulus and tubing w/1%-2%inhibited brine UPPER COMPLETION _ Perfs 2192-2212', 2232-2272' (1948-2014'TVD) M[DDLE COMPLETION Perfs 2502-2512', 2535-2550', 2683-2703', 3104-3114' (2204-2744' TVD) LOWER COMPLETION Perfs 3507-3537', 3744-3754', 3875- 3895', 4135-4150', 4427-4447', 4771-4781', 4882-4892' (3118-4480' TVD) 13 318" 72# H-40 conductor drilled to 80't 2 7/8", 6.5#, 8rd EUE h~bing 12 1/4" hole drilled to 1021' MD , 975 TVD. 9.625" 36# BTC J-55 Casing to 1019" MD, Cemented with 14.5 ppg Gas-Block Type I cement slurry system to surface ker @ 2150' MD ling Sleeve at 2775' Aiding Sleeve at ',290' 'acker @ 2475' MD hiding Sleeve at ',514' Aiding Sleeve at 3148' 'acker @ 3475'MD 5#, J-55 casing set MD Cemented with Class G ~ ~~ lU3 .~: ~4u®°ora Gas, L L wwwaurorapowercom October 27, 2006 Mr. William Van Dyke; Acting Director Department of Natural Resources Division of Oil and Gas 550 W. 7`i' Avenue, Suite 1100 Anchorage, AK 99501-360 Mr. Keith Sanders Sr. Vice President, Land and Legal Affairs Cook Inlet Region Incorporated 2525 `C' Street, Suite 500 P.O. Box 93330 Anchorage, AK 99509-3330 RE: Three Mile Creek Unit Dear Mr. Van Dyke and Mr. Sanders: Due to unfavorable reservoir characteristics and drilling results, we can no longer justify the work commitment necessary to sustain this unit. Accordingly, the anticipated contraction of the Participating Area would result in the remaining acreage being less than the lease itself. Therefore, it is with deepest regrets that we must inform you that the Three Mile Creek Unit partners have decided to voluntarily dissolve this unit, Effective November 1, ?006. \1C/e ~µnul°:Sta::'~ that Ct~tP Cf'AlNS1Ca O.l .a~i `~ gaS 1~.aSe, AT1T ~RR72~ ~s~ill e~nt~n~wa to 1~P held by production, and that the remaining State and CIRI oil and gas leases, presently held by the unit, will ultimately expire, unless extended. It is our intention to continue production from the Three Mile Creek Unit No. 1 and No. 2 wells on a lease basis. Aurora Gas, LLC, as Unit Operator, hereby accepts the responsibilities of the current unit operations as the Lessee and Notification Lessee of record. We respectfully request that the Unit Plan of Development be administratively transferred to a Lease Plan of Development. In conjunction with this request, as of November 1, ?006, we will be operating under a Lease Plan of Development, as it pertains to the existing developments and present operations, and the existing Lease Plan of Operation approvals for the wells, pads, roads and pipelines. 10333 Richmond Avenue, Suite 710 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 • • Three tilile Creek Unit October 27, 2006 Page 2 Additionally, it is our understanding that the AOGCC Conservation Order No. 558, establishing rules for the Three Mile Creek Beluga Gas Pool, will remain in effect. Aurora Gas, LLC intends on continuing operations in accordance with these pool rules. Should circumstances improve in the future, we may revisit the possibility of unitization. Thank you for your time and attention to this matter. Should you have questions, please contact Mr. J. Edward (Ed) Jones at the Houston telephone number below. Sincerely, .~=c65~ 1 Bruce D. Webb Manager, Land and Regulatory Affairs Concurrence by Forest Oil Corporation: ~,.. '"~- ~ , a ;~~ mes D. Arlington Land Manager Cc: Mr. John K. Norman Chairman Alaska Oil and Gas Conservation Commission 333 W. 7~" Avenue, Suite 100 Anchorage, AK 99501 Mr. Matt W. Rader ~'atural Resource Specialist State of Alaska Division of Oil and Gas 550 W. 7`h A~-enue, Suite 800 Anchorage, AK 99501-3560 ~ R I I A, ` ~. i ~ , ~' i o .1 i ~ A 7 ~ ~~ i ~ ( ~ 'M ~i I ~ ~j ~ ~i ~ ~ '~ ~ ~ i ~ ~ a I,~ ~ `~ ~ ,{ ' ~ ~~~ ~~~) ~ , a N~ ~ ~m ~ ,~; ~ , ,~ , FRANK H. MURKOWSKI, GOVERNOR ~~ ~~ ~~ ~~rr ~l taT~ /-~ ~ ~+ ~a~-7~ O~ ~ V[0-7 7~ ~~ 333 W. 7"' AVENUE, SUITE 100 COI~TSERQATI011T COhII~TISSIOI~T t~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 Edward Jones FAX (907) 276-7542 Vice President, Engineering 8v Operations Aurora Gas, LLC 1400 W. Benson Blvd, Ste 410 Anchorage, AK 99503 Re: Three Mile Creek Unit, TMC Beluga Gas Pool, Three Mile Creek #2 Sundry Number: 306-307 Dear Mr. Jones: 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~~ciay of September, 2006 Encl. 7L~ ~,'~ . Sincerelv, E & P SERVICES, lNC. September 7, 2006 Mr. John Norman, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Sundry Approval: Workover of Three Mile Creek # 2 (PTD No. 205-143) Dear Mr. Norman, ~~.i~"~vGl_V ~~~ ~as~ka ~i~fl~ as LGor~s~'G~i~l~° ~C~Cf~Ca~ SEP 0 8 ZOUo Alaska Oif & Gas Cons. Commission Anchorage Fairweather E&P Services, Inc., on behalf of Aurora Gas, LLC hereby applies for approval of Aurora's plans to acid stimulate the Three Mile Creek # 2 gas well in the Three Mile Creek gas field on the west side of Cook Inlet. The workover is expected to commence as soon as we get approval. This workover will involve acidizing the well through the existing tubing. No BOP's will be used for this acid treatment and maximum treating pressure will be 2000 psi or less. Enclosed please find a Form 10-403, Application for Sundry Approval, for this work. Also enclosed are a detailed work plan and current and current Three Mile Creek #2 wellbore diagram. If you have any questions or require additional information, please contact me at 258- 3446. Sincerely, FAIRWEATHE,]~ E&P SERVICES, INC. ~-, ~'`' Bill Penrose Vice President /Drilling Manager enclosures cc: Mr. J. Edward Jones -Aurora Gas 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 J. STATE OF ALASKA ~ 6 F~ECEwED ALASKA OIL AND GAS CONSERVATION COMMISSION ~~~~"EP Q S 2DU6 APPLICATION FOR SUNDRY APPROVALS 20 AAC ~Fi pan .,__~__ n:~ g. r_~~ f nnc rnrnmissinn 1. Type of Request: Abandon^ Suspend ^ Operational shutdown^ Perforate^ Waivar~Orii B Other^ g Alter casing^ Repair well ^ Plug Perforations^ Stimulate0 Time Extension ^ Change approved progran^ Pull Tubing^ Perforate New Pool^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Aurora Gas, LLC Development ^ Exploratory ^ 205-143 ''~ 3. Address: Stratigraphic ^ Service ^ 6. API Number: 1400 W. Benson Blvd, Suite 410, Anchorage, AK 99503 50-283-20116-00 7. ff perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ^~ Three Mile Creek #2 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): °~~~ ~`~S4~S ~~~ ADL 388233 310' Three Mile Creek #5~~,~• 12. PRESENT WELL. CONDITION SUMMARY ~~{ Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 5299' 5299' 5219' 5219' none none Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 13-318" 80' 80' N/A NIA Surface 1021' 9-S18" 1021' 962' 2020 psi 3520 psi Intermediate Production 5299' S.S" 3299' 5299' 4270 psi 3120 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 3,507'-4,892' 3,507'-4,892' 2.7/8" L-80 3496' Packers and SSSV Type: HES PHL PACKER Packers and SSSV MD (ft): 2150',2475',3475' 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations. Program Q BOP Sketch ^ Exploratory ^ Development ^~ Service ^ 15. Estimated Date for 16. Wall Status after proposed work: 9Sep-06 Commencing Operations: Oil ^ Gas Q Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoin true and correct to the best of my knowledge. Contact Bill Penrose 258-3446 Printed Name dwards Jones Title Vice President, Engineering and Operations Signature Phone Date 7-Sep-06 713-077-5799 ~ OCv COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~- Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: RBUM~ ~F~ SEP .~ ~ 2006 Subsequent Form Required: '1 t ~"1 APPROVED BY Approved by: MISS R THE COMMISSION Date: i Form 10-403 Revised 06/200t~ R ~ I ~ Submit in Duplicate ( 1 r Y Aurora Gas, LLC THREE MILE CREEK #2 CLEAN-UP AC/D/Z/NG PROCEDURE MIDDLE COMPLETION (Version 1.0) September 6, 2006 CAPACITIES: 2-7/8" Tubing: 0.00579 bbl/ft and 5-1/2" 15.5# Casing: 0.0238 bbl/ft Tubing-Casing Annulus: 0.0158 bbl/ft SLIDING SLEEVE @ 2080' (Halliburton XD) -DO NOT OPEN-PACKER FLUID. PACKER @ 2128' SLIDING SLEEVE @2175' (Halliburton XD) UPPER COMPLETION: PERFS @ 2192-2212' & 2232-2272' (60') SLIDING SLEEVE @ 2290' (Halliburton XD) PACKER @ 2467' SLIDING SLEEVE @ 2514' (Halliburton XD) MIDDLE COMPLETION: PERFS @ 2502-12', 2535-50', 2683-2703' & 3104-14' (55'). BHT=70-75 deg. SIBHP expected to be about 900 psi, could be as high as 1100 psi. SLIDING SLEEVE @ 3148' (Halliburton XD) PACKER @ 3475' XN PROFILE NIPPLE @ 3490'\ LOWER COMPLETION: PERFS @ 3507-37', 3744-54', 3875-95', 4135-50', 4427-47' 4771-81', & 4882-92' PBTD= 5225' NOTE-ALL SLIDING SLEEVES ARE NOW CLOSED AND BOTTOM PERFS ARE OPEN (NO PLUG IN PROFILES). All sliding sleeves open downward and have X profiles above sleeve opening. 1) RU Aurora Gas Test Unit and/or 50 bbl half-tank on skids in containment to prepare for flow back: a) Remove spool downstream of SSV, and insta112" 1502 hard line from tree to test choke manifold skid. (alternatives: 1) prepare to flow back thru swab valve and tree cap, and/or 2) install choke in line to half tank). b) Run 2" 1502 hard line to Test Separator skid, about 25' away (alternatively, to half tank w/ 45 deg down spout into tank. e) Set flare stack 50' or more from test separator skid and from well head, connect to test separator w/ 3" 1502 hard line (alternatively, if half tank is used, no flare will be used-when flow has cleaned up and pH has dropped, flow to production facility). 2) Prep Gas Test Unit (if available): 4 r ~ • a) Take and record initial measurements of brine levels in test tank on skid; b) Record test separator water meter reading; c) Install a 1.0" orifice in meter run (meter factor will be 31.45 w/ temp reading of about 6.5 or 63 deg). c) Install new chart on Barton recorder; d) Install fresh nitrogen bottle onto skid for instrumentation; e) Confirm electric clock on chart recorder has fresh battery, is on, and set to 24 hrs. 4) RU Pollard Wireline w/boom truck. Make gauge ring run to XN nipple at 3490'. Run PXN plug w/ prong and set in 2.313" XN nipple at 3490'. Blow down tubing, shut in w/ gauge and watch for 10 minutes to be sure plug is holding. 5) Lubricate 6 bbl of produced water (from tank at TMC #1) into tubing for cushion when opening sleeves. Open sliding sleeve at 3148'. Allow pressure to equalize. Open sliding sleeve at 2514'. POH and RD Pollard (leave trucks on location-see Step 7, a day or so later). 6) RU BJ to acidize thru tree. a) Hold PJSM. b) Pressure test lines to 2500 psi-max expected treating pressure is 2000 psi or less. c) Using produced water or 3% KCl water from Moquawkie 1 workover (in vac truck), fill tubing (may take about 30 bbl, if cushion of 6 bbl was placed as cushion) and establish injection. d) Pump 375 gal (9 bbl) 10% Acetic acid. e) Displace to top perf w/ treated ammonium chloride water (15 bbl) f) SI well and allow to soak overnight or for at least 8 hours. g) Pump 750 gal (18 bbl) of 10% acetic-1% HF acid w/ additives h) Pump 750 gal (18 bbl) fines-stabilizing overflush. i) Displace to bottom perf w/ produced water/3% KCl workover water (22 bbl, assuming that the acid will out both sleeves and into the perfs closest to each sleeve) j) RD MO BJ. 7) RU Pollard to swab and flow back. Initially swab back into half-tank, then switch to test unit if available when well kicks off (or to production facility when pH of water is greater than 6). If test unit is available, test long enough to clean up load fluid (118 bbl, +/-). If not, flow to half tank (with vac truck handy to haul off load of fluid-recycle-use for NCU 9 workover, but could store in TMC 2 produced water tank temporarily). Check pH and-treat if necessary to get pH above 6 before hauling. 8) When well is stable flowing, put to production facility. Get stable rate and pressure and monitor water volumes. 9) When most water is recovered, SI well, RU Pollard and pull prong and plug in XN nipple at 3490' . Commingle the Lower and Middle Completions. Continue to monitor closely. ~ . • • Aurora Gas, LLC Displaced 2 7/8" x 5.5" annulus and tubing w/ 1 % - 2% inhibited brine 13 3/~" 72# H-40 conductor drilled to 80'± 2 7/8", 6.5#, 8rd EUE tubing 12 I/4" hole drilled to 1021' MD , 975 TVD. 9.625" 36# BTC J-55 Casing to 1019" MD, Cemented with 14.5 ppg Gas-Block Type I cement slurry system to surface Aker @ 2150' MD Perfs 2192-2212',2232-2272' 'acker @ 2475' MD Perfs Three Mile Creek Unit No. 2 Current Well Configuration (9/7/06) 2502-2512', 2535-2550', 2683-2703',3104-3114' 'acker @ 3475'MD Perfs 3507-3537', 3744-3754', 3895', 4135-4150', 4427- 4771-4781', 4882-4892' .5#, J-55 casing set MD ~ ememed with Class G RE: Aurora Gas TMCU #2 Acid Treatment Subject: RE: Aurora Gas TMCU #2 Acid Treatment From: Bill Penrose <bill@fairweather.com> Date: Fri, OS Sep 2006 14:14:58 -0800 To: ~hhomasMaun~ier °-;tom maander(uadmin.statc.ak.us ~~ Thanks, Tom. ~~"~~`"$,~ 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 [mailtc:tom maunder~adnin.state.ak.us] Sent: Friday, September 08, 2006 2:13 PM To: Bill Penrose Subject: Re: Aurora Gas TMCU #2 Acid Treatment Bill, This acknowledges receipt of the sundry to stimulate TMCU #2. You have verbal approval to proceed. Tom Maunder, PE AOGCC Bill Penrose wrote, On 9/8/2006 1:46 PM: Tom, We submitted the TMCU #2 acid treatment Sundry Application to the Commission yesterday. While we realize that a one day turnaround on full written approval is not realistic for us to expect, I wonder if we could get a verbal approval to commence the job this weekend (i.e., over the next two days). The acid that Aurora wishes to pump is the second half of an abbreviated job on another well and the acid is already mixed. We would like to pump it as soon as possible. Thanks and regards, Bill Penrose Vice President / Drilling Manager Fairweather E&P Services, Inc. 2000 E. 88th Avenue, Suite 200 Anchorage, Alaska 99507 907-258-3446 1 of 1 9/12/2006 8:03 AM ~ur~ara ~''as, tLC www.aurorapower.com January 27, 2006 Alaska Oil and Gas Conservation Commission 333 W. 7~' Ave. Ste 100 Anchorage, Alaska 99501 Attn: Steve Davies RE: Aurora Gas, LLC Three Mile Creek Unit No.2, Per t #205-143 Gentlemen: This letter in duplicatf; originals transmits the data to you identified below, pursuant to Aurora Gas, LLC's obligation to you. This data is relative to drilling of the Three Miles Creek Unit No. 2 well, Cook Inlet, ARaska. Enclosed herewith are paper prints of the logs, as indicated below: SCHLUMBE;RGER Oren-Hole LOGS (9-Nov-20~ 2- Platform Express: Array Induction/Litho-Density/Comp Neutron/GR/SP/Caliper: TVD and MD prints 1- Modular Formation Dynamics Tester 1- Formation Micro Imager Dipmeter Field Print SCHLUMBE;RGER Cased-Hole LOGS 1- Slim Cement Mapping Tool Cement Bond Log & Map Images (15-Nov-2005-5-1%2") 1- Completion Record Squeeze Perf (16-Nov-2005) I- Completion Record Perf 3.5" HSD PowerJet (21-Nov-2005) HORIZON WELL LOGGING, INC. MUD LOG 1- Oil & Gas MD Mud Log /- ~ Oil & Gas TVD Mud Log Please signify that you have received and accepted this data by signing in the space below and returning this letter to me at-the Houston address below or by fax to me at 713-977-1347. If you have questions, please contact me at the Houston number below. Si ly, J and Jones x .Vice. President, Eng' ring and C)perations RECEIVED AND ACCEPTED ABOVE DATA this~~ Day o 2006 BY: ~ TITLE: ~Ik.! 1x(uL _ ~rni n 0~- Y~ n 1CU;,.~ P NAME: ~~~ c r~- 10333 Richmond Avenue, Suite 710 • Houston, Texas 77042 • (713) 977-5799 • Fax (713)977-1347 1400 Wesf Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 • E & P SERVICES, INC. ~, ~.; p a t141 ~ ~~ ~ .~w~P t,~sk December 15, 2005 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Corrected and signed 10-407: TMCU-2 (API # 50-283-20116-00) Dear Mr. Norman, Aurora Gas, LLC hereby submits the corrected and signed copy of the 10-407, which covers the completion of TMCU-2.Operations were completed on November 30, 2005. Pertinent information included under cover of this letter includes the following: 1) Form 10-407 "Well Completion Report and Log" - 2 copies. If you have any questions or require additional information, please contact Ed Jones of Aurora Gas, LLC at 277-1003 or Richard Tisch of Fairweather E&P Services, Inc. at 258-3446. Regards, ~~ Richard E. Tisch 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 STATE OF ALASKA ~ '~`" ALAS ~ OIL AND GAS CONSERVATION COM ION WELL COMPLETION OR RECOMPLETION REPORT ~N~ L~~ zQO~ 1a. Well Status: Oil Gas ~ 'Plugged Abandoned 2oaaczs.~os GINJ^ WINJ^ WDSPL~ No. of Completions Suspended WAG 2onnczs.iio Other 1b. Well Class: 8S ~On Development^ ~rn:nbi(~d~ Service ~ StratigraphicTe 2. Operator Name: Aurora Gas, LLC 5. Date Comp., Susp., or~ Aband.: Z'~.8i1=NOV-05 ~~ 12.pP~ermit to Drill Number: ~9 205-143 ~ 3. Address: 1400 West Benson Blvd, Suite 410 Anchorage, AK. 99503 6. Date Spudded: 18-Oct-05 ` 13. API Number: 283-20116-00 4a. Location of Well (Governmental Section): Surface: 679' FNL, 273' FWL, Sec 35, T13N, R11W, SM ~ 7. Date TD Reached: 7-Nov-05 ~ 14. Well Name and Number: TMCU-2 Top of Productive Horizon: 221' FSL, 427' FEL, Sec 27, T13N, R11W, SM 8. KB Elevation (ft): 310' KB 15. Field/Pool(s): Total Depth: 671' FSL, 777' FEL, Sec 27, T13N, R11W, SM ~ 9. Plug Back Depth(MD+TVD): MD 5225' TVD 4822' Three Mile Creek Unit 4b. Location of Well (State Base Plane Coordinates): NAD 27 Surface: x- 286553 ~ y- 2625014 ' Zone- 4 10. Total Depth (MD + TVD): MD 5307' TVD 4899' 16. Property Designation: ADL 388233 TPI: x- 286086 y- 2625656 Zone- 4 Total Depth: x- 285538 y- 2626356 Zone- 4 11. Depth Where SSSV Set: N/A 17. Land Use Permit: Ciri Lease 18. Directional Survey: Yes Q No 19. Water Depth, if Offshore: N/A feet MSL 20. Thickness of Permafrost: N/A 21. Logs Run: Schlumberger Hole Logs: PEX / FMI /MDT /Side wall core on 11-09-05; CBL / GR / CCL on 11-15-05 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 13-3/8 48# H-40 Surface 60' RKB Surface 60' RKB driven Drilled and Driven 9 5/8 36# J-55 Surface 1019' Surface 1019' 12.25" 113.3 bbls 14.6 ppg Cmt. Topjob 8 bbl 15.8 ppg "G" 51/2 15.5# J-55 Surface 5270' Surface 5270' 7.875" 3 stage, 126 sks Class"G" 63 sks + 800 sks Class"G" 274 bbls 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) 4882892', 4771-4781', 4427-4447', 4135-4150', 3875-3895', 3744-3754', 3475', 2475',.2150' 3507-3537', 3104-3114', 2683-2703', 2535-2550', 2502-2512', 2232-2272', 2292-2212' MD 3.5" HC 6spf 60 deg phasing 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 2174' to 2175' squeeze 10 bbls of 15.8 ppg G type cement infectivity test perfs tested to 1000 psi for 30 minutes 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate -- Oif-Bbl: Gas-MCF: Water-Bb1: Oil Gravity -API (corr): 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". `~z ' "' { ,t s ~~~M~ ~F~- t~EC 2 0 1005 v>R,, ::i ~.~: R)f11/SSiC Form 10-407 Revised 12/2003 ~ CONTIt~D ON REVERSE 28. GEOLOGIC MARKER 29. RMATION TESTS NAME MD TVD Include and briefly sum ze test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". "See Attachment" 30. List of Attachments: Formation Tops 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Aurora Gas, LLC Printed Name: J. Edward Jones Title: Vice President, Engineering & Operations Signatu e: Phone: 907 277-1003 Date: 12/15/2005 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for / njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple 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 produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 • • TMCU- 2 TMCU- 2 SAND MD TVDSS BASE GLACIAL WASH 750 403 TOP BELUGA FM 750 403 TSUGA 2-3 1432 1326 TSUGA 2-4 2420 2140 TSUGA 2-5 3440 3060 TSUGA 2-6 4000 3610 Aurora Gas, LLC Three Mile Creek Unit No. 2 Final Well Configuration Displaced 2 7/8" x 5.5" annulus and tubing w/ 1 % - 2% inhibited brine Perfs ~ 2192-2212',2232-2272' Perfs 2502-2512', 2535-2550', 2683-2703', 3104-3114' Perfs ~ 3507-3537',3744-3754',3875- 3895', 4135-4150', 4427-4447', 4771-4781',4882-4892' L` 13 3/8" 72# H-40 conductor drilled to 80't 2 7/8", 6.5#, 8rd EUE tubing 12 1/4" hole drilled to 1021' MD , 975 TVD. 9.625" 36# BTC J-55 Casing to 1019" MD, Cemented with 14.5 ppg Gas-Block Type I cement slurry system to surface ;ker @ 2150' MD Packer @ 2475' MD Packer @ 3475'MD .5#, J-55 casing set 'MD ~;emented with Class G • __ Bll 312 A6 2-7/8' DD ALL DIMENSIONS ARE APPROX. v ii ~ uu ~..au SWE & FCE ENG{NEER{NG ACAD vetcogray° 9-S/8 X S-1/2 X 2-7/8 OD, 5M MSP ASSY ____._ R WN BY: C. RICE DATE: 14 OCT 2004 ~ REFEREN 85-341000 D AWING N0. G. APPR.: DATE: x[v-G SCALE: ~+ PROJECT NO.: SP-5598 • ~' t HALL/BURTON ENERGY SERVICES H A L L I B U RTO N ROB WARREN / COMPLETIONS SPECIALIST 3 PRUDHOE BAY /COOK INLET ALASKA STERLING, ALSKA (907) 260-3246 PRUDHOE BAY, ALASKA (907) 670-5953 Customer Aurora Gas, LLC Customer Representative Well Three Mile Creek# 2 Field T onek Date Item # Descri tion I.D. O.D. Len th De th 2 7/8" x 4' PUP JOINT 2.441 3.690 4.14 2133.18 a 3 5.5" x 2 7/8"HES PHL PACKER ASSY# 2 2.360 4.700 4.94 2128.20 2 7/8" x 8' PUP JOINT 2.441 3.690 8.33 2119.87 JT #37 EUE TUBING (1 JT 2.441 3.690 31.00 2088.87 a 2 7/8" x 4' PUP JOINT 2.441 3.690 4.16 2084.71 2 2 7/8" HES XD SLIDING SLEEVE ASSY# 5 2.313 3.920 4.04 2080.67 2 7/8" x 6' PUP JOINT 2.441 3.690 6.12 2074.55 JTS #38-103 EUE TUBING 66 JT 2.441 3.690 2049.73 24.82 e 2 7!8" x 4' PUP JOINT 2.441 3.690 4.30 20.52 2 7/8" x 4' PUP JOINT 2.441 3.690 3.80 16.72 1 TUBING HANGER VETCO GRAY 0.48 16.24 RKB = 15' 15.00 1.24 PUPS FOR LANDING HANGER WILL HAVE TO BE ADJUSTED AT THAT TIME i a 9 10 ~ w 11 12 1J 14 1 • • WELL DRILLING AND COMPLETION REPORT ,Aurora +Ga-s, L L C Three Mile Creek unit - 2 Tyonek, Alaska 7-December-2005 Aurora Gas, LLC Page 1 of 9 • • Background Information: The Three Mile Creek Unit-2 well was permitted to be drilled as a natural gas exploration well by Aurora Gas, LLC, with approval given on October 07, 2005, PTD # 205-143. The well was drilled on a newly constructed pad; TMCU-2 was drilled using the Aurora Well Services Rig #l. The well was spudded on October 18, 2005 and reached TD on November 07, 2005. Prior to rig mobilization and spud, the conductor was installed using the drill and drive technique with final conductor set depth at 60' KB.'After successfully installing the conductor, the remainder of the drilling rig was moved to the site and rigged up to drill the TMCU-2 well. The following well work summary details the drilling and completion work chronology. Dates indicated reflect date morning report(s) were received in office and reflect site activities over previous 24 hour period, i.e. 0600 hrs on day previous to 0600 hrs on the date following report generation and submittal. Attachment I is a schematic of the well as completed at this time. Work Summary and Daily Activities: The following operations took place on the dates indicated: 10/15/OS Fire up boiler; warm up gradually to working temperature and pressure. Haul two loads of mud from Lone Creek #3 to pits. Plumb in shock hose and put up walls and rafters on choke skid. Set rigging and pull 13 3/8" casing out, back fill hole in cellar, fabricate jig for stabilizing the conductor while driving to maintain vertical. Plumb in pop-off valves and bleed off line on pumps. Rig up pump and swivel controls. Clamp conductor to driving jig, drive pipe to 22', weld on 4' piece and drive conductor to 25', 200 blows for the last 1 inch. Lay down hammer and rig up to drill out conductor Hang tarps over pumps and wire in heater fans. 10/16/05 Rig up kelly hose, pick up power swivel and hang tongs. Pick up and make up swivel saver subs and inline valve. Set catwalk, pick up BHA, lay down collars and prime and break circulation with #2 OPI pump. Drill mouse hole, transfer mud, and drill 7 7/8" ~° pilot hole to 97'. Blow down kelly hose, pumps, manifold and lines, POH and lay down all pipe. Rig accepted at 00:01 hrs 10-16-05. Aurora Gas, LLC Page 2 of 9 • • 10/17/05 Pick up hammer, dress 13 3/8" stump, weld on 21.4' joint and weld up flow hose. Drive casing to 60' RKB, the last 3' took 1000 strokes. Discuss options with town, rig down hammer, cut casing, lay down stub and dress up cut. Install starter head, nipple up diverter system and function test knife valves. Function test witnessed by John Spaulding of AOGCC with directive to improve knife valve closing time. Nipple up flowline, trip tank lines, flow sensors and fill up lines. PSI calibrated all gas detectors and alarms. 10/18/05 Rig up to test gas alarms, weld 4" valve on conductor. Lay out Blooey line and install, weight down line with blocks. Install TT hoses and function test Koomey unit, rig up centrifuge and mud cleaner. Drill out mouse hole and set pipe in hole. Pick up BHA; rig up Sperry Sun unit and equipment. Change out valve on Koomey, modify air valve to allow knife valve to open/close faster per directive from John Spaulding at AOGCC. Drill 8 1/2" open hole from 36' to 190'. - 10/19/05 Drill from 190' to 345', circulate hole with pump #2, and work on pump #1. Pull out of hole to shoe at 60'. Work on removing transmission from OPI pump #1, plumb in Pop- off and suction /discharge lines to pumps #2 and #3. RIH to 345', drill from 345' to 437' and circulate hole. POH to work on mud pump caps. 10/20/05 POH and lay down drill collars, stabilizers and break out bit. Winterize rig and work on mud pumps. Make up Sperry Sun BHA, test pump with BJ unit, test lines to 2500 psi. Pick up drill collars; test MWD at 100', RIH and take survey at 223' and 347'. Start sliding at 00:30 hrs (AM). 10/21/05 Drill and slide 8 %2" hole from 437' to 947', lost 20 bbls of mud to the hole. Notice partial lost returns, circulate and condition mud with LCM. Generator died, work on generator. Drill and slide from 947' to 1021', circulate hole at 2 bpm while welding plate with gussets on conductor. No losses noted while circulating at 2 bpm; 80 bbls total lost to hole. 10/22/05 Weld base plate w/ gussets to conductor, pump out of hole, lay down drill pipe and BHA. Pick up hole opener, x-overs, and tea 6'/4 drill collars. Open hole to 12 1/4" from 60' to 350'. 10/23/05 Open hole to 12 1/a" from 350' to 412'. Pull out of hole to check cutters on hole opener. Repair crown-o-matic. RIH to 352'; wash to bottom at 412'. Open hole from 412' to 564', stab packing off when hole unloads. Work to repair Horizon ViewMaster Screen, open from 564' to 821'. Aurora Gas, LLC Page 3 of 9 10/24/05 Open hole 8 %2" to 12 '/4" from 821' to 1021', circulate and condition mud/hole. Pump out of hole from 811' to 210', ream back down hole from 210' to 1021', circulate and condition mud/hole. Pump out of hole to 944', spot LCM pill of Nut Plug and Fiber Seal. Pump dry job and set back power swivel, POH, lay down 6 '/4" drill collars, 12 '/4" stabilizer and hole opener. Rig up to run casing, hold PJSM, make up shoe and float collar, check float on third joint in. 10/25/05 RI~I with 9 5/8" casing to 730', attempt to circulate, unable to send mud to BJ for circulating with BJ pumps. RIH with 9 5/8" casing to 894', attempt to circulate, change out bad valve on gun line and circulate hole at 4-5 bpm. RIH to 1015', wash to bottom at 1019'. Circulate and condition the hole, rig up cementing head and hold PJSM. Pump 5 bbls water and test lines to 2000 psi. Pump 113.3 bbls of 14.6 ppg surface blend cement at 4 bpm. Lost partial returns after pumping 111 bbls displace with 75.5 bbls of 9.7 ppg mud, bump plug to 800 psi, float did not hold, put 200 psi on pipe. Lost 95 bbls to returns total. WOC 12 hours or until set. Rig down and clean up BJ equipment, rig down diverter line. Start hauling spud mud to Envirotech for disposal. Put OPI transmission back together. 10/26/05 Rig down flow nipple; pick up Hydril and rough cut casing. Nipple down diverter stack, cut 13 3/8" casing with starter head remove same. Pick up 1" tubing, RIH to 50' BGL (65' RKB) flush with water and pump 8 bbls of "G" 15.8 ppg cement to surface, rig down BJ and clean up cellar. Weld on 9 5/8" casing well head, prep BOP stack and wait on weld to cool. Change Koomey fluid out, clean sand trap in pits and haul water. Start nipple up of BOP stack. 10/27/05 Nipple up BOP's; hammer up bolts, rig up hydraulic lines, change out choke valve. Precharge nitrogen bottles. 10/28/05 Test BOP's, choke manifold valves, accumulator, floor valves, gas alarms and pit/flow sensors. Test upper and lower kelly valves and rig down test equipment. Pull test plug and blow down choke manifold. Move SWACO choke panel inside doghouse. Set wear bushing. Pick up 7 7/8" bit and BHA. Work on #1 mud pump and motor. RIH with drill pipe and rig up to test casing. Test 9 5/8" casing to 1500 psi. for 15 minutes. Rig down test equipment, pick up power swivel and establish circulation, tag cement at 974', float collar at 975', drill to 987'. Motor on power swivel started to leak, change out power swivel motor. 10/29/05 Replace motor on power swivel. Drill cement, shoe and 20' of new hole from 986' to 1041'. Circulate and condition mud for FIT test. Attempt to do FIT, replace liner gasket on #1 mud pump. Perform FIT; leak off at 180 psi with 9.5 ppg mud, EMW equal to Aurora Gas, LLC Page 4 of 9 ~ • 13.0 ppg. Rig down from test, blow down choke and test lines. Drill /slide from 1041' to 1079'. Thaw air line to power swivel. Drill /slide from 1079' to 1579'. 10/30/05 Drill from 1579' to 1614' and circulate hole clean. Set swivel in shuck, short trip to shoe and back to bottom. Drill from 1614' to 1814'. Electric breaker to pits keeps tripping, shut down to find and repair problem, short trip to 1567'. Drill from 1841' to 2424'. 10/31/05 Drill from 2424' to 2452', circulate bottoms up, set Kelly in shuck and blow down lines. Short trip 10 stands to 1832'. Drill from 2452' to 2978', circulate bottoms up, set Kelly in shuck and blow down lines. Short trip 11 stands, pulling tight, pull through once, no over pull. 11/Ol/OS Continue with short trip from 2295' to 2047', ream from 2942' to 2977', drill from 2977' to 3185'. Repair OPI pump, change out liner and gasket. Drill /slide from 3185' to 3242'. Repair hydraulic unit for the power swivel and drill /slide from 3242' to 3503'. 11/02/05 Drill /slide from 3503' to 3717', circulate bottoms up, mix and pump a dry job. POH and lay down 19 joints of drill pipe, hole tight at 3432' to 3426' and 3410' to 3400'. Pick up new bit, 20 joints of drill pipe and RIH to 2620'. 11/03/05 Continue to RIH to 3655', precautionary ream form 3655' to 3717'. Drill from 3717' to 4155'. 11/04/05 Drill from 4155' to 4497'. Circulate and reciprocate for short trip, mix and pump dry job. Short trip to 3694', tight spot at 3824' (+/- lOK), RIH to 4466' and wash from 4466' to 4497', no fill. Drill from 4497' to 4515'. 11/06/05 Drill from 4870' to 4926', repair OPI pump replace liner gasket. Drill from 4926' to 4992', repair power pack for power swivel (replace hydraulic pump). Work on OPI pump, replace wear plate and liner gasket. Drill from 4992' to 5016', circulate and attempt to drill - maxed out on available torque from hydraulic unit. Blow down and set back power swivel, fill trip tank and POH to shoe. Replace VDX computer. 11/0'7/05 Continue working on the VDX computer. RIH to 4958', wash from 4958' to 5016', tight spot at 4966'. Drill from 5016' to 5305' (TD), circulate, work pipe and condition hole for short trip. ~ Aurora Gas, LLC Page S of 9 • • 11/08/05 Short trip to 4993' with no problems. Circulate and condition hole for upcoming logs. POH and lay down BHA. Rig up Schlumberger, RIH with log #1 (PEX), work tight spot at 4280' to 4300' and encountered a bridge at 4600', log from 4660'. Rig down Schlumberger, pick up BHA and RIH. 11/09/05 RIH, break circulation at 2500' and pick up 4 singles. Make up swivel and wash from 5288' to 5305'. Circulate and condition hole for logs. POH and rig up Schlumberger, - log with PEX to 5310', POH and lay down PEX. Pick up FMI run in the hole and log, POH and lay down FMI. Pick up MDT run in the hole and log. 11/10/OS Log hole with MDT. Pull out of the hole to lay down MDT and pick up Sidewall core tool. Make run in and come out, rig down Schlumberger. Pick up BHA and run in hole to 5293', circulate and condition hole for casing run. Rig up to lay down drill pipe, pump dry job, blow down lines, set back swivel and come out of the hole laying down. 11/11/OS Lay down drill pipe, lay down BHA, lay down swivel, kelly hose and shuck. Pull wear ring, set test plug and change rams. Clean out cement in BOP's. PJSM for running 5 %2" casing. Repair blown hose on tong unit. Rig up and run 5 %" casing to 1015', stop and circulate two casing volumes. Continue to run casing to 2537', blown hose on tong unit, circulate hole while repairing tong hose. Continue to run casing. 11/12/05 Run 5 %2" casing to 5270', circulate casing and prep to cement, rig up cement head and hold PJSM. Test lines to 3000 psi. Mix and pump 30 bbls MCS for a sweep at 12 ppg; 126 sack Class G + additives at 12.7 ppg; 63 sack Class G + additives 13.5 ppg; 800 sack Class G at 15.8 ppg. Bump plug with 125 bbls water. Float collar at 5225', float shoe at 5270'. Clean pits while waiting on cement. 11/13/05 Waiting on cement, rig down choke and kill line, start to nipple down. Slack weight off of casing, nipple down, set slips and packoff, tests to 3000 psi. Nipple up DSA, BOP's, choke line and manifold, flowline, trip tank and fill up lines. Test BOP's, Koomey, and choke manifold. Continue cleaning pits and prep for picking up tubing. 11/14/05 Finish testing BOP's. Strap, rabbit and pick up tubing. Prep to circulate, pick up swivel and continue to mix brine to 9.7 ppg. Attempt to test casing, work on test pump, test casing to 2500 psi for 30 minutes; mix brine while testing. Finish mixing brine, line up pumps, centrifuge and filters; hold PJSM. Displace hole with brine, mix and adjust brine weight while circulating and filtering. Aurora Gas, LLC Page 6 of 9 • • 11/15/05 Circulate and filter, weight up brine to 9.7 ppg. Rig down circulating swivel, hoses and blow down lines. POH with bit and scraper, nipple down bell nipple and flow line. Rig up Schlumberger and run CBL, GR and CCL logs. Fax in CBL results and wait on orders. 11/16/05 Wait on orders unti106:00 hrs. PJSM for shooting perforations, rig up and pick up guns, run in the hole, correlate and fire guns from 2174' to 2175' (6 spf). POH with gun and rig down shooting flange and wireline BOP's. Rig down bell nipple, flow line and trip tank lines. Rig on standby until weather clears for flying. 11/17/05 Wait on weather; clear snow from around the rig, put chains on wheeled equipment. Make an inventory of equipment that is to be back hauled on the demob. Clean sand trap in pits and haul mud to Envirotech. Clean and sort parts house, boiler room, the pits doghouse and rig floor. 11/18/05 Wait on weather, rig on standby rate. Rig up BJ Services and hold PJSM. Pick up and RIH with port collar shifting tool to 1393', try to circulate up annulus, pressure buildup to 250 psi on formation, bleed off pressure and rig down circulating head. POH and lay down port collar tool. Pick up EZ drill retainer on tubing, strap going in the hole to 2142'. Rig up to circulate and circulate bottoms up, hold PJSM for setting retainer. 11/19/05 Set EZ drill packer, rig up BJ Services and test lines to 2000 psi. Perform Infectivity test on formation at perfs 2175'. Start at .3 bpm to 510 psi at 1 bbl away, broke back to 460 psi, continue pumping, increase rate to .5 bpm, pressure increased to 480 psi. Increase rate to .75 bpm with 1.5 bbls away, pressure increased to 510 psi. Increase rate to 1.0 bpm with 2 bbls away, pressure increased to 550 psi. Increase rate to 1.25 bpm with 3.3 bbls away, pressure increased to 590 psi and stabilized; stopped pumping with a total of 4.2 bbls away. Mix cement and pump 10 bbls of 15.8 ppg "G" cement; displaced 7 bbls, stop pumping and wait 6 minutes. Resume displacement to 8.25 bbls away; stop pumps and wait 12 minutes, resume pumping to 9 bbls away with pressure at 620 psi. Shut down and POH with one stand, rig up to reverse circulate with rig pump; 2 bpm at 220 psi for 1 % times bottoms up. Change gears on the pump and circulate bottoms up 2 more times at 3 bpm. Rig down circulating head and lines, blow down lines and POH with tubing and EZ drill running tool. Pick up packer and RIII to port collar, close same, attempt to test at 2000'.Cups on packer will not hold, POH and lay down packer and port collar tool; close blinds and test to 2000 psi. Pick up shuck and power swivel, make up lines, hoses, saver sub and pick up BHA and RIH to 1865'. Finish making up power swivel and RIH to 2051'. Pick up singles and wash down to cement at 2092'. Drill out cement to 2143' and the EZ Drill packer. Aurora Gas, LLC Page 7 of 9 • • 11/20/05 Drill cement to top of the retainer at 2143' . Drill on the EZ Drill xetainer, break through at 10:00 hours, make a connection and push retainer down to 2156'. Drill on junk and cement to 2175' and clean out to 2180'. Rig up to test perfs, pressure up to 1000 psi and hold for 30 minutes. Run in hole to 5211' with 4 3/a" bit on tubing, rig up to circulate and filter brine. Circulate and filter after centrifuging brine. 11/21/05 Circulate and filter brine. Pull out of hole, rig up perforating guns, BOPS, sheaves and line. Shoot perforations. 11/22/05 Continue perforating zones. Pull out of hole and rig downs guns, NU bell nipple, flowline and trip tank lines; Fill Hole, pick up casing scraper and run to 5210', got stuck and worked free, pull up to 5024'. Circulate and filter brine, hold pre job safety meeting. Pull out of hole, stand back 20 stands of tubing and lay down the rest. 11/23/05 Finish lying down tubing. Pick up lower production packer, run in hole and set packer at 3475'. Pull out of hole, pick up second and third packer tubing and sliding sleeves and run in hole. 11/24/05 Continue running in hole; set packers at 2467' and 2128'. Test annulus successfully to 1000 psi. Set back pressure valve, nipple down BOPS and nipple up tree. Successfully test tree and tubing to 3000 psi. Pulled backpressure valve. Rig up slickline and run in hole with Pollard slickline and retrieve ball bar, set plug and cross over nipple at 3475', open sleeve to circulate packer fluid. 11/25/05 Open sliding sleeve at 2128'; reverse in packer fluid, close sleeve at 2128' and open sleeve at 2174'. Rig up for test and swab. Swab to 2260' in 5 runs for total of 20 bbls. Shut in well; high pressure 530 psi, flare 290 psi. Flow at 230 psi on 12/64" choke for'/z --~ hour, shut in for 1 hour, open choke for 2 hours. Shut in well for 2 hours, pressure built to 565 psi. Flow test well on 12/64" and then 26/64"choke. 11/26/05 Continue testing well on 24/64" choke. Shut in well for 1 hour, pressure built up to 610 psi. flow well for 3.5 hours on 20164" choke. Shut in well for 4 hours, pressure built up to 703 psi. Close sleeve at 2290' and open sleeves at 3140' and 2900'. Swab well in with 8 swab runs for total of 6 bbl. Monitor well for 2 hours; maximum pressure of 166 psi. Flow well on 22/64" choke for 15 minutes. Shut in well for 3.5 hours, pressure built to 300 psi. Aurora Gas, LLC Page 8 of 9 • • 11/27/05 Flow well: 12/64" at 57psi, 11/64" at 60psi, 8/64" at 127 psi. Shut in well for 4.5 hours. Flow well for 10 minutes on 9/64" choke at 100 psi. Close sliding sleeve at 2500'. Swab 18 bbl in 3 runs. Flow well for 2 hours on 16/64" choke at 552 psi. Switch to test separator and flow for 7 hours through 16/64" choke at 323 psi stabilized. Shut in well; pressure built to 828 psi. in 1 hour. 11/28/05 Shut in pressure after 7 hours is 831 psi. Rig up Pollard wireline, close sleeve at 3140' and pull plug at 3475'. Flare well for 4.5 hours. Shut in well; pressure built to 210 psi in 1.5 hours, 1054 psi after 8 hours. Rig down lubricator and drop soap stick. Flow well through 28164" choke at 1054 psi, 12/64" choke starting at 46 psi and cleaning up to 208 psi. 11/29/05 Flow test well with 12/64" choke, shut in well for one hour and bleed off pressure at 13:00 hours, 0 bbls recovered. Shut in well for one hour and bleed off pressure at 14:00 hours, 1 bbl recovered. Flow well at 144 psi with choke at 12/64" and 40/64", recovered 2.54 bbls. 11/30/05 Flow well with 14/64" choke opening, stable at 284 psi. Shut in well for 15 minutes pressure readings. Release rig at 12:00 hours. RD rig floor, lay down flare stack and break out hard line. Clean pits, remove green tank with shaker and stage at airstrip. Rig down pressure gas detection system and send back to town via Spernak Air. Coil up lines in the pits, move Horizon's logging shack to airstrip and stage. Move mud dock and stairs off location, finish rigging down lines in the derrick. Lay down fig floor tugger and rig down Swaco. Rig down and blow down separator system. 12/01/05 Continue to rig down rental equipment, rig down separator and move separator, slop tank, and pits. Continue to rig down, pull tarps from choke, pull frame from choke wrap and oil lines from pits. Set BPV in tree, rig down electrical lines to the pits, grease choke manifold valves. Remove choke manifold, trip tank, break down berms, remove steps from structures and roll up electrical lines. Remove racking boards in the cellar and pull more of tarps. 12/02/05 Continue to rig down sub, roll up tarps and clean location, stage loads, stack mats and dunnage. Remove wind walls and lower driller's platform, blow down water lines, secure derrick board and wind wall. Load out remainder of 3.5 drill pipe from the Moquawkie location. Aurora Gas, LLC Page 9 of 9 E & P SERVICES, INC. December 5, 2005 ~~ ~~~~ ~9~,~,y~~~~~ ~, ,_ Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission 333 West 7~` Avenue, Suite 100 Anchorage, Alaska 99501-3539 RE: Weekly Report of Operations: Three Mile Creek Unit # 2 (PTD 205-143) Dear Mr. Norman, Fairweather E&P Services, Inc. on behalf of Aurora Gas, LLC hereby submits its final weekly report of operations for the week of November 26 through December 2, 2005 for its Three Mile Creek Unit # 2 well. If you have any questions or require additional information, please contact Ed Jones, Aurora Gas, LLC at 277-1003 or Richard Tisch at 258-3446. Sincerely, AURORA GAS, LLC Richard E. Tisch, Fairweather E&P Services, Inc. for J. Edward Jones Executive Vice President Engineering /Operations cc: Jesse Mohrbacher John Breitmeier 2000 East 88th Avenue • Anchorage, Alaska 99507.• (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • • Three Mile Creek Unit - 2 Tyonek, Alaska WEEKLY DRILLING REPORT 11/26/05 to 12/02/05 ~Aurnra Gas, LLC • • Aurora Gas, LLC Three Mile Creek Unit # 2 Weekly Operations Report November 26 -December 2, 2005 The following operations took place on the dates indicated: 11/26/05 Continue testing well on 24/64" choke. Shut in well for 1 hour, pressure built up to 610 psi. flow well for 3.5 hours on 20/64" choke. Shut in well for 4 hours, pressure built up to 703 psi. Close sleeve at 2290' and open sleeves at 3140' and 2900'. Swab well in with 8 swab runs for total of 6 bbl. Monitor well for 2 hours; maximum pressure of 166 psi. Flow well on 22/64" choke for 15 minutes. Shut in well for 3.5 hours, pressure built to 300 psi. 11/27/05 Flow well: 12/64" at 57psi; 11/64" at 60psi, 8/64" at 127 psi. Shut in well for 4.5 hours. Flow well for 10 minutes on 9/64" choke at 100 psi. Close sliding sleeve at 2500'. Swab 18 bbl in 3 runs. Flow well for 2 hours on 16/64" choke at 552 psi. Switch to test separator and flow for 7 hours through 16/64" choke at 323 psi stabilized. Shut in well; pressure built to 828 psi in 1 hour. 11/28/05 Shut in pressure after 7 hours is 831 psi. Rig up Pollard wireline, close sleeve at 3140' and pull plug at 3475'. Flare well for 4.5 hours. Shut in well; pressure built to 210 psi in 1.5 hours, 1054 psi after 8 hours. Rig down lubricator and drop soap stick. Flow well through 28/64" choke at 1054 psi, 12/64" choke starting at 46 psi and cleaning up to 208 psi. 11/29/05 Flow test well with 12/64" choke, shut in well for one hour and bleed off pressure at 13:00 hours, 0 bbls recovered. Shut in well for one hour and bleed off pressure at 14:00 hours, 1 bbl recovered. Flow well at 144 psi with choke at 12/64" and 40/64", recovered 2.54 bbls. 11/30/05 Flow well with 14/64" choke opening, stable at 284 psi. Shut in well for 15 minutes pressure readings. Release rig at 12:00 hours. RD rig floor, lay down flare stack and break out hard line. Clean pits, remove green tank with shaker and stage at airstrip. Rig down pressure gas detection system and send back to town via Spernak Air. Coil up lines • ~ in the pits, move Horizon's logging shack to airstrip and stage. Move mud dock and stairs off location, finish rigging down lines in the derrick. Lay down fig floor tugger and rig down Swaco. Rig down and blow down separator system. 12/01/05 Continue to rig down rental equipment, rig down separator and move separator, slop tank, and pits. Continue to rig down, pull tarps from choke, pull frame from choke wrap and oil lines from pits. Set BPV in tree, rig down electrical lines to the pits, grease choke manifold valves. Remove choke manifold, trip tank, break down berms, remove steps from structures and roll up electrical lines. Remove racking boards in the cellar and pull more of tarps. 12/02/05 Continue to rig down sub, roll up tarps and clean location, stage loads, stack mats and dunnage. Remove wind walls and lower driller's platform, blow down water lines, secure derrick board and wind wall. Load out remainder of 3.5 drill pipe from the Moquawkie location. RE: E-mail Subject: RE: E-mail From: "Richard E. Tisch" <richard@.fairweather.com> Date: Mon.,. OS Dec ?005 10:38:41 -0900. ~- -~ To; [ homas ~l~uinder ==lomnrutndcr(u~~admi~~.statc.ak.us~= ,~-~,,7 - ~ ~-~ Tom, You are correct in your assumption that it should read 1000 psi and not 100. We try not to let things like that get by us, but on rare occasions they do. Regards, Richard Tisch Fairweather E&P Services, Inc. From: Thomas Maunder [maiito:tom_maunder@admin.state.ak.us] Sent: Monday, December 05, 2005 9:04 AM To: Richard E. Tisch Cc: Bill Penrose Subject: Re: E-mail Bill and Richard, Here is the message that kept getting bounced back on Friday. Thanks for looking into the email problems and the TMCU #2 question. Tom Maunder, PE AOGCC Richard, I was looking at the latest weekly report and noted that a casing test is described on November 24. The text reads that the annulus was tested to 100 psi. Is 100 correct or should it be 1000?? Thanks, Tom Maunder, PE AOGCC Bill Penrose wrote, On 12/5/2005 8:19 AM: Tom, The Fairweather a-mail system is back up. If you want or need to re-send anything you were trying to get through to anybody here on Friday, now would be a good time. Regards, Bill 1 of 1 12/5/2005 1:53 PM • • E & P SERVJCES, JNC. November 28, 2005 Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 RE: Weekly Report of Operations: Three Mile Creek Unit # 2 (PTD 205-143) Dear Mr. Norman, °~: ~~~ ~ ?(~( Aia~ka Di[ ~ G~ ~s. ~n+miss~ ~~chAr~p Fairweather E&P Services, Inc. on behalf of Aurora Gas, LLC hereby submits its report of operations for the week of November 19 through 25, 2005 for its Three Mile Creek Unit # 2 well. If you have any questions or require additional information, please contact Ed Jones, Aurora Gas, LLC at 277-1003 or Richard Tisch at 258-3446. Sincerely, AURORA GAS, LLC Richard E. Tisch, Fairweather E&P Services, Inc. for J. Edward Jones Executive Vice President Engineering and Operations cc: Jesse Mohrbacher John Breitmeier 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • • Aurora Gas, LLC Three Mile Creek Unit # 2 Weekly Operations Report November 19 - 25, 2005 The following operations took place on the dates indicated: 11/19/05 Set EZ drill packer, rig up BJ Services and test lines to 2000 psi. Perform Infectivity test on formation at perfs 2175'. Start at .3 bpm to 510 psi at 1 bbl away, broke back to 460 psi, continue pumping, increase rate to .5 bpm, pressure increased to 480 psi. Increase rate to .75 bpm with 1.5 bbls away, pressure increased to 510 psi. Increase rate to 1.0 bpm with 2 bbls away, pressure increased to 550 psi. Increase rate to 1.25 bpm with 3.3 bbls away, pressure increased to 590 psi and stabilized; stopped pumping with a total of 4.2 bbls away. Mix cement and pump 10 bbls of 15.8 ppg "G" cement; displaced 7 bbls, stop pumping and wait 6 minutes. Resume displacement to 8.25 bbls away; stop pumps and wait 12 minutes, resume pumping to 9 bbls away with pressure at 620 psi. Shut down and POH with one stand, rig up to reverse circulate with rig pump; 2 bpm at 220 psi for 1 %z times bottoms up. Change gears on the pump and circulate bottoms up 2 more times at 3 bpm. Rig down circulating head and lines, blow down lines and POH with tubing and EZ drill running tool. Pick up packer and RIH to port collar, close same, attempt to test at 2000'.~Cups on packer will not hold, POH and lay down packer and port collar tool; close blinds and test to 2000 psi. Pick up shuck and power swivel, make up lines, hoses, saver sub .and pick up BHA and RIH to 1865'. Finish making up power swivel and RIH to 2051'. Pick up singles and wash down to cement at 2092'. Drill out cement to 2143' and the EZ Drill packer. 11/20/05 Drill cement to top of the retainer at 2143'. Drill on the EZ Drill retainer, break through at 10:00 hours, make a connection and push retainer down to 2156'. Drill on junk and cement to 2175' and clean out to 2180'. Rig up to test perfs, pressure up to 1000 psi and hold for 30 minutes. Run in the hole to 5211' with 4 3/a" bit on tubing, rig up to circulate and filter brine. Circulate and filter after centrifuging brine. 11/21/05 Circulate and filter brine. Pull out of hole, rig up perforating guns, BOPS, sheaves and line. Shoot perforations. 11/22!05 Continue perforating zones. Pull out of hole and rig downs guns, NU bell nipple, flowline and trip tank lines; Fill Hole, pick up casing scraper and run to 5210', got stuck and worked free, pull up to 5024'. Circulate and filter brine, hold pre job safety meeting. Pull out of hole, stand back 20 stands of tubing and lay down the rest. 11/23/05 C7 Finish lying down tubing. Pick up lower production packer, run in hole and set packer at 3475'. Pull out of hole, pick up second and third packer tubing and sliding sleeves and run in hole. 11/24/05 Continue running in hole; set packers at 2467' and 2128'. Test annulus successfully to 100 psi. Set back pressure valve, nipple down BOPS and nipple up tree. Successfully test tree and tubing to 3000 psi. Pulled backpressure valve. Rig up slickline and run in hole with Pollard slickline and retrieve ball bar, set plug and cross over nipple at 3475', open sleeve to circulate packer fluid. 11/25/05 Open sliding sleeve @ 2128'; reverse in packer fluid, close sleeve @ 2128' and open sleeve @ 2174'. Rig up for test and swab. Swab to 2260' in 5 runs for total of 20 bbls. Shut in well; high pressure 530 psi, flare 290 psi. Flow at 230 psi on 12/64" choke for %2 hour, shut in for 1 hour, open choke for 2 hours. Shut in well for 2 hours, pressure built to 565 psi. Flow test well on 12/64" and then 26/64"choke. E & P SERVICES, INC. November 21, 2005 • Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 ~* ~~ ~ c~ ~~~~~~ (~! ~ F ~~, ::.sN~~s~~si~n RE: Weekly Report of Operations: Three Mile Creek Unit # 2 (PTD 205-143) ~/' Dear Mr. Norman, Fairweather E&P Services, Inc. on behalf of Aurora Gas, LLC hereby submits its report of operations for the week of November 12 through 18, 2005 for its Three. Mile Creek Unit # 2 well. If you have any questions or require additional information, please contact Ed Jones, Aurora Gas, LLC at 277-1003 or Richard Tisch at 258-3446. Sincerely, AURORA GAS, LLC Richard E. Tisch, Fairweather E&P Services, Inc. for J. Edward Jones Executive Vice President Engineering -Operations cc: Jesse Mohrbacher John Breitmeier 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • • Three Mile Creek Unit - 2 Tyonek, Alaska WEEKLY DRILLING REPORT 11/12/05 to 11/18/05 ~Aur+~ra Gas, LLC C Aurora Gas, LLC Three Mile Creek Unit # 2 Weekly Operations Report November 12 -1$, 2005 The following operations took place on the dates indicated: • 11/12!05 Run 5 %2" casing to 5270', circulate casing and prep to cement, rig up cement head and hold PJSM. Test lines to 3000 psi. Mix and pump 30 bbls MCS for a sweep at 12 ppg; 126 sack Class G + additives at 12.7 ppg; 63 sack Class G + additives 13.5 ppg; 800 sack Class G at 15.8 ppg. Bump plug with 125 bbls water. Float collar at 5225', float shoe at 5270'. Clean pits while waiting on cement. 11/13/05 Waiting on cement, rig down choke and kill line, start to nipple down. Slack weight off of casing, nipple dc,wn, set slips and packoff, tests to 3000 psi.. Nipple up DSA, BOP's, choke line and manifold, flowline, trip tank and fill up lines. Test BOP's, Koomey, and choke manifold. Continue cleaning pits and prep for picking up tubing. 11/14/05 Finish testing BOP's. Strap, rabbit and pick up tubing. Prep to circulate, pick up swivel and continue to mix brine to 9.7 ppg. Attempt to test casing, work on test pump, test casing to 2500 psi ;For 30 minutes; mix brine while testing. Finish mixing brine, line up pumps, centrifuge and filters; hold PJSM. Displace hole with brine, mix and adjust brine weight while circulating and filtering. 11/15/OS Circulate and filter, weight up brine to 9.7 ppg. Rig down circulating swivel, hoses and blow down lines. ]POH with bit and scraper, nipple down bell nipple and flow line. Rig up Schlumberger and run CBL, GR and CCL logs. Fax in CBL results and wait on orders. 11/16/05 Wait on orders unti106:00 hrs. PJSM for shooting perforations, rig up and pick up guns, run in the hole, con-elate and fire guns from 2174' to 2175' (6 spf). POH with gun and rig down shooting i7ange and wireline BOP's. Rig down bell nipple, flow line and trip tank lines. Rig on standby until weather clears for flying. • • 11/17/05 Wait on weather; clear snow from .around the rig, put chains on wheeled equipment. Make an inventory of equipment that is to be back hauled on the demob. Clean sand trap in pits and haul mud to Envirotech. Clean and sort parts house, boiler room, the pits doghouse and rig floor. 11/18/OS Wait on weather, ri.g on standby rate. Rig up BJ Services and hold PJSM. Pick up and RIH with port collar shifting tool to 1393', try to circulate up annulus, pressure buildup to 250 psi on formation, bleed off pressure and rig down circulating head. POH and lay down port collar tool. Pick up EZ drill retainer on tubing, strap going in the hole to 2142'. Rig up to circulate and circulate bottoms up, hold PJSM for setting retainer. i E & P SERVICES, (NC. .. z~ f ~ , ~. ~ °~G ` fY Novemlr 21, 2 5 Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 • RE: Weekly Report of Operations: Three Mile Creek Unit # 2 (PTD 205-143) Dear Mr. Norman, ~~ ~V~~ N01~ . 2005 Alaska Oil & Gas Caen. Commiasi!nn Anchorage Fairweather E&P Services, Inc. on behalf of Aurora Gas, LLC hereby submits its report of operations for the week of November"`through Y'8,~ 2005 for its Three Mile Creek Unit # 2 well. S ~ \ ~~ If you have any questions or require additional information, please contact Ed Jones, Aurora Gas, LLC at 277-1003 or Richard Tisch at 258-3446. Sincerely, AURORA GAS, LLC Richard E. Tisch, Fairweather E&P Services, Inc. for J. Edward Jones Executive Vice President Engineering -Operations cc: Jesse Mohrbacher 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • Aurora Gas, LLC Three Mile Creek Unit - 2 Weekly Operations Report November 5 -11, 2005 The following operations took place on the dates indicated: 11/12/05 Drill from 4515' to 4870', add lubricants to reduce torque. 11/13/05 Drill from 4870' to 4926', repair OPI pump replace liner gasket. Drill from 4926' to 4992', repair power pack for power swivel (replace hydraulic pump). Work on OPI pump, replace wear plate and liner gasket. Drill from 4992' to 5016', circulate and attempt to drill - maxed out on available torque from hydraulic unit. Blow down and set back power swivel, fill trip tank and POH to shoe. Replace VDX computer. 11/07/05 Continue working on the VDX computer. RIH to 4958', wash from 4958' to 5016', tight spot at 4966'. Drill from 5016' to 5305', circulate, work pipe and condition hole for short trip. 11/08/05 Short trip to 4993' with no problems. Circulate and condition hole for upcoming logs. POH and lay down BHA. Rig up Schlumberger, RIH with log #1 (PEX), work tight spot at 4280' to 4300' and encountered a bridge at 4660', log from 4660'. Rig down Schlumberger, pick up BHA and RIH. 11/09/05 RIH, break circulation at 2500' and pick up 4 singles. Make up swivel and wash from 5288' to 5305'. Circulate .and condition hole for logs. POH and rig up Schlumberger, log with PEX to 5310', POH and lay down PEX. Pick up FMI run in the hole and log, POH and lay down FMI. Pick up MDT run in the hole. 11/10/05 Log hole with MDT. Pull out of the hole to lay down MDT and pick up Sidewall core tool. Make run in and come out, rig down Schlumberger. Pick up BHA and run in hole to 5293', circulate and condition hole for casing run. Rig up to lay down drill pipe, pump dry job, blow down lines, set back swivel and come out of the hole laying down. 11/11/OS Lay down drill pipe, lay down BHA, lay down swivel, kelly hose and shuck. Pull .wear ring, set test plug and change rams. Clean out cement in BOP's. PJSM for running 5 %2" • a casing. Repair blown hose on tong unit. Rig up and run 5 %" casing to 1015', stop and circulate two casing volumes. Continue to run casing to 2537', blown hose on tong unit, circulate hole while repairing tong hose. Continue to run casing. • E & P SERVICES, INC. November 8, 2005 Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 • NOV 1 ~' %005 :~ pit! & Gas t ~~rnission Ancho, ._ =e RE: Weekly Report of Operations: Three Mile Creek Unit # 2 (PTD 205-143) Dear Mr. Norman, Aurora Gas, LLC hereby submits its report of operations for the week of October 29 thru November 4, 2005 for its Three Mile Creek Unit # 2 well. If you have any questions or require additional information, please contact Ed Jones, Aurora Gas, LLC at 277-1003 or Richard Tisch at 258-3446. Sincerely, AURORA GAS, LLC Richard E. Tisch, Fairweather E&P Services, Inc. for J. Edward Jones Executive Vice President Engineering -Operations cc: Jesse Mohrbacher 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • Aurora Gas, LLC Three Mile Creek Unit - 2 Weekly Operations Report October 29 -November 4, 2005 The following operations took place on the dates indicated: 10/29/05 Replace motor on power swivel. Drill cement, shoe and 20' of new hole from 986' to 1041'. Circulate and condition mud for FIT test. Attempt to do FIT, replace liner gasket on #1 mud pump. Perform FIT, leak off at 180 psi with 9.5 ppg mud, EMW equal to 13.0 ppg. Rig down from test, blow down choke and test lines. Drill /slide from 1041' to 1079'. Thaw air line to power swivel. Drill /slide from 1079' to 1579'. 10/30/05 Drill from 1579' to 1614' and circulate hole clean. Set swivel in shuck, short trip to shoe and back to bottom. Drill from 1614' to 1814'. Electric breaker to pits keeps tripping, shut down to find and repair problem, short trip to 1567'. Drill from 1841' to 2424'. 10/31/05 Drill from 2424' to 2452', circulate bottoms up, set Kelly in shuck and blow down lines. Short trip 10 stands to 1832'. Drill from 2452' to 2978', circulate bottoms up, set Kelly in shuck and blow down lines. Short trip 11 stands, pulling tight, pull through once, no over pull. 11/Ol/OS Continue with short trip from 2295' to 2047', ream from 2942' to 2977', drill from 2977' to 3185'. Repair OPI pump, change out liner and gasket. Drill /slide from 3185' to 3242'. Repair hydraulic unit for the power swivel and drill /slide from 3242' to 3503'. 11/02/05 Drill /slide from 3503' to 3717', circulate bottoms up, mix and pump a dry job. POH and lay down 19 joints of drill pipe, hole tight at 3432' to 3426' and 3410' to 3400'. Pick up new bit, 20 joints of drill pipe and RIH to 2620'. 11/03/05 Continue to RIH to 3655', precautionary ream form 3655' to 3717'. Drill from 3717' to 4155'. 11/04/05 Drill from 4155' to 4497'. Circulate and reciprocate for short trip, mix and pump dry job. Short trip to 3694', tight spot at 3824' (+/- lOK), RIH to 4466' and wash from 4466' to 4497', no fill. Drill from 4497' to 4515' • E & P SERVICES, INC. October 31, 2005 Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 • RE: Weekly Report of Operations: Three Mile Creek Unit - 2 (PTD 205-143) Dear Mr. Norman, Aurora Gas, LLC hereby submits its report of operations for the week of October 22 thru October 28, 2005 for its Three Mile Creek Unit - 2 well. If you have any questions or require additional information, please contact Ed Jones, Aurora Gas, LLC at 277-1003 or Richard Tisch at 258-3446. Sincerely, AURORA GAS, LLC Richard E. Tisch, Fairweather E&P Services, Inc. for J. Edward Jones Executive Vice President Engineering -Operations cc: Jesse Mohrbacher 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • Aurora Gas, LLC Three Mile Creek Unit - 2 Weekly Operations Report October 22 - 28, 2005 The following operations took place on the dates indicated: 10/22/05 Weld base plate w/ gussets to conductor, pump out of hole, lay down drill pipe and BHA. Pick up hole opener, x-overs, and tea 61/4 drill collars. Open hole to 12 1/4" from 60' to 350'. 10/23/05 Open hole to 12 1/4" from 350' to 412'. Pull out of hole to check cutters on hole opener. Repair crown-o-matic. RIH to 352'; wash to bottom at 412'. Open hole from 412' to 564', stab packing off when hole unloads. Work to repair Horizon ViewMaster Screen, open from 564' to 821'. 10/24/05 Open hole 8 1/2" to 12 1/4" from 821' to1021', circulate and condition mud/hole. Pump out of hole form 811' to 210', ream back down hole from 210' to 1021', circulate and condition mud/hole. Pump out of hole to 944', spot LCM pill of Nut Plug and Fiber Seal. Pump dry job and set back power swivel, POH, lay down 6 1/4" drill collars, 12 1/a" stabilizer and hole opener. Rig up to run casing, hold PJSM, make up shoe and float collar, check float on third joint in. 10/25/05 RIH with 9 5/8" casing to 730', attempt to circulate, unable to send mud to BJ for circulating with BJ pumps. RIH with 9 5/8" casing to 894', attempt to circulate, change out bad valve on gun line and circulate hole at 4-5 bpm. RIH to 1015', wash to bottom at 1019'. Circulate and condition the hole, rig up cementing head, hold PJSM. Pump 5 bbls water, test lines to 2000 psi pump 113.3 bbls of 14.6 ppg surface blend cement at 4 bpm. Lost partial returns after pumping 111 bbls displace with 75.5 bbls of 9.7 ppg mud, bump plug to 800 psi, float did not hold, put 200 psi on pipe. Lost 95 bbls to returns total. WOC 12 hours or until set. Rig down and clean up BJ equipment, rig down diverter line. Start hauling spud mud to Envirotech for disposal. Put OPI transmission back together. 10/26/05 Rig down flow nipple; pick up Hydril and rough cut casing. Nipple down diverter stack, cut 13 3/8" casing with starter head remove same. Pick up 1" tubing, RIH to 50' BGL (65' RKB) flush with water and pump 8 bbls of "G" 15.8 ppg cement to surface, rig down BJ and clean up cellar. Weld on 9 5/8" casing well head, prep BOP stack and wait on weld to cool. Change Koomey fluid out, clean sand trap in pits and haul water. Start nipple up of BOP stack. • . 10/27/05 Nipple up BOP's; hammer up bolts, rig up hydraulic lines, change out choke valve. Precharge nitrogen bottles. 10/28/05 Test BOP's, choke manifold valves, accumulator, floor valves, gas alarms and pit/flow sensors. Test upper and lower kelly valves and rig down test equipment. Pull test plug and blow down choke manifold. Move SWACO choke panel inside doghouse. Set wear bushing. Pick up 7 7/8" bit and BHA. Work on #1 mud pump and motor. RIH with drill pipe and rig up to test casing. Test 9 5/8" casing to 1500 psi for 15 minutes. Rig down test equipment, pick up power swivel and establish circulation, tag cement at 974', float collar at 975', drill to 987'. Motor on power swivel started to leak, change out power swivel motor. r1 ~J E & P SERVICES, INC. October 24, 2005 • ~'~~, ~~T~ '~~ ~F~~ Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission ~ ~, ~~- ~, ~~~ 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 RE: Weekly Report of Operations: Three Mile Creek Unit - 2 Dear Mr. Norman, Aurora Gas, LLC hereby submits its report of operations for the week of October 15 thru October 21, 2005 for its Three Mile Creek Unit - 2 well. If you have any questions or require additional information, please contact Ed Jones, Aurora Gas, LLC at 277-1003 or Richard Tisch at 258-3446.. Sincerely, AURORA GAS, LLC Richard E. Tisch, Fairweather E&P Services, Inc. for J. Edward Jones Executive Vice President Engineering -Operations cc: Jesse Mohrbacher 2000 East 88th Avenue • Anchorage, Alaska 99507 • (907) 258-3446 • FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 • (281) 445-5711 • FAX (281) 445-3388 • Aurora Gas, LLC Three Mile Creek Unit - 2 Weekly Operations Report October 15 - 21, 2005 n The following operations took place on the dates indicated: ~~~ ~~ ~ \~~~j 10/15/OS Fire up boiler; warm up gradually to working temperature and pressure. Haul two loads of mud from Lone Creek #3 to pits. Plumb in shock hose and put up walls and rafters on choke skid. Set rigging and pull 13 3/8" casing out, back fill hole in cellar, fabricate jig for stabilizing the conductor while driving to maintain vertical. Plumb in pop-off valves and bleed off line on pumps. Rig up pump and swivel controls. Clamp conductor to jig, drive pipe to 22', weld on 4' piece and drive conductor to 25', 200 blows for the last 1 inch. Lay down hammer and rig up to drill out conductor. Hang tarps over pumps and wire in heater fans. 10/16/05 Rig up kelly hose, pick up power swivel and hang tongs. Pick up and make up swivel saver subs and inline valve. Set catwalk, pick up BHA, lay down collars and prime and break circulation with #2 OPI pump. Drill mouse hole, transfer mud, and drill 7 7/8" pilot hole to 97'. Blow down kelly hose, pumps, manifold and lines, POH and lay down all pipe. Rig accepted at 00:01 hrs 10-16-05. 10/17/05 Pick up hammer, dress 13 3/8" stump, weld on 21.4' joint and weld up flow hose. Drive casing to 60' RKB, the last 3' took 1000 strokes. Discuss options with town, rig down hammer, cut casing, lay down stub and dress up cut. Install starter head; nipple up diverter system and function test knife valves. Function test witnessed by John Spaulding of AOGCC with directive to improve knife valve closing time. Nipple up flowline, trip tank lines, flow sensors and fill up lines. PSI calibrated all gas detectors and alarms. 10/18/05 Rig up to test gas alarms, weld 4" valve on conductor. Lay out Blooey line and install, weight down line with blocks. Install TT hoses and function test Koomey unit, rig up centrifuge and mud cleaner. Drill out mouse hole and set pipe in hole.. Pick up BHA; rig up Sperry Sun unit and equipment. Change out valve on Koomey, modify air valve to allow knife valve to open/close faster per directive from John Spaulding at AOGCC. Dri118 %2" open hole from 36' to 190'. 10/19/05 Drill from 190' to 345', circulate hole with pump #2, and work on pump #1. Pull out of hole to shoe at 60'. Work on removing transmission from OPI pump #l, plumb in Pop- off and suction /discharge lines to pumps #2 and #3. RIH to 345', drill from 345' to 437' and circulate hole. POH to work on mud pump caps. • 10/20/05 POH and lay down drill collars, stabilizers and break out bit. Winterize rig and work on mud pumps. Make up Sperry Sun BHA, test pump with BJ unit, test lines to 2500 psi. Pick up drill collars; test MWD at 100', RIH and take survey at 223' and 347'. Start sliding at 00:30 hrs (AM). 10/21/05 Drill and slide 8 %" hole from 437' to 947', lost 20 bbls of mud to the hole. Notice partial loss returns, circulate and condition mud with LCM. Generator died, work on generator. Drill and slide from 947' to 1021', circulate hole at 2 bpm while welding plate with gussets on conductor. No losses noted while circulating at 2 bpm; 80 bbls total lost to hole. ~. . ,. ~LASS-~ OIL A1~TD GAS COI~TSER'QATI011T COAII~IISSIOI~T J. Edward Jones Executive Vice President of Operations Aurora Gas, LLC 1400 W. Benson Blvd, Ste 410 Anchorage, AK 99503 • FRANK H. MURKOWSK/, GOVERNOR 333 W. 7`" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Three Mile Creek Unit #2 Aurora Gas, LLC Permit No: 205-143 Surface Location: 679' FNL, 273 FWL, Sec 35, T 13N, R 11 W, SM Bottomhole Location: 671' FSL, 777 FEL, Sec 27, T 13N, R 11 W, SM Dear Mr. Jones: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or any approval required by Iaw from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously-issued.- - Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or t he terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (90,7~'~59-3607 (pager). Sincere DATED this'/ day of October, 2005 cc: Department of Fish 8s Game, Habitat Section w/ o encl. Department of Environmental Conservation w/o encl. ~' STATE OF ALASKA HTJ~SKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL ~n nnr. ~~ nn~ ~'~'~~ 1a. Type of Work: Drill Q Redrill ~ 1b. Current Well Class: V Exploratory [~ Development Oil ~ Multiple Zone Re-entry ~ Stratigraphic Test ~ Service ~ Development Gas ~ ~ Single Zone 2. Operator Name: 5. Bond: Blanket ~ Single Well ~ 11. Weil Name and Number: Aurora Gas, LLC Bond No. NZS 429815 Three Mile Creek Unit No. 2 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 1400 W. Benson Blvd, Ste 410, Anchorage, AK 99503 ~ MD: 5299 ~ TVD: 4900' 4a. location of Well (Governmental Section): , 7. Property Designation: ~~(( Three Mile Creek Unit Surface: < 679'FNL, 273 FWL, Sec 35, T13N, R11W, SM ~ ADL 3,99s1'6' ~~2~~ ~a,~ ~'~' ,, Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 221'FSL, 427 FEL, Sec 27, T13N, R11W, SM Unit Operating Agreement 7-OCt-05 Total Depth: 9. Acres in Property: ~~~ R.a-fwd ci.. 14. Distance to Nea`est i 671'FSL, 777 FEL, Sec 27, T13N, R11 W, SM 8080 acres in Three Mile Creek Unit Vie' Property: ~ ~ '~ ~~~"~ . 4b. Location of Well (State Base Plane Coordinates): NAD 27 ~ ~ 10. KB Elevation 310' MLLW ,CTS ;~ 5. Distance t Brest Well ~ ~ l Surtace:x- 286553 y- 2625014 Zone- 4 v5 (Height above GL): 15' `r,• ~' ^-/, ~tf' `n Within Pool. is at SU ace 16. Deviated wells: Kickoff depth: ~~ Bet ~ 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) ~c• - Maximum Hoie Angle: 35 degrees Downhole: 2597 psig ~ Surface: 2058 psig -~ 18. Casing Program: at; • • a7 Specifications Setting Depth Quantity of Cement Size Top Bottom c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 13 3/8" 72 K-55 Welded 80 15 15 95 95 Drilled and Driven 12 1/4" 9 5/8" 36 J-55 BTC 485 500 500 5 0 500 60 bbls @ 100 % OH Excess 7 7/8" 5 1/2" 15.5 J-55 BTC 5299 13 13 5299 4900 210 bbls @ 25% OH Excess 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate P Production Liner Perforation Depth MD {ft): Perforation Depth TVD (ft): ~;jj~~ P71/~~~~ 20. Attachments: Filing Fee ~ BOP Sketch Drilling Program ~ Time v. Depth Plot ~ Shallow Hazard Analysis Property Plat Q Diverter Sketch ~ Seabed Report ~ Drilling Fluid Program Q 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name d d Jones Title Executive Vice President of Operations Signature ~ ~.;~„~: Phone 907-277-1003 Date 29-Sep-05 Commission Use Only Permit to Drill Number: ~~~~~ API Number: 2 / 50 ~:Jr~/! ~"~~ Permit Ap royal 0 ~ b ' ~ See cover letter for other r ir t - ~S Date: L 0 Q ~ equ emen s. Conditions of approval Sa re d Yes ~ No ~ Mud log required Yes ~ No ~' s i measures Yes ~ No ~ Directional survey required Yes No Other: `~ ~ ~ ~ tCx^~`.~ APPROVED BY Appro THE COMMISSION Date: Form 10-401 Revised 06/2004 ~ ~ ~ ~ ~ ~ A L Submit inDuplicate _~~~~ ~~ .~. Aurrora Gas, LLC www.aurorapower.com September 30, 2005 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7`h Ave., Suite 100 Anchorage, Alaska 99501 Attn: Mr. Tom Maunder P.E. 1ZE: Application for Permit to Drill: Three Mile Creek Unit No. 2 Dear Mr. Norman: ~~~~ S /~~ ~~ka EP 3 Q 2445 ~~ G ~ COdIS. '~~®r~~ miser On behalf of Aurora Gas, LLC, Fairweather E&P Services, Inc. hereby submits a Permit to Drill application for an onshore natural gas developement well on the northwest side of the Cook Inlet. The Three Mile Creek Unit (TMCU) No. 2 well will be located approximately seven (7) miles north of Tyonek, Alaska. Aurora Gas, LLC proposes to spud the TMCU No. 2 well on>or about October 7, 2005. Pertinent information in and attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill - 2 copies 2) Fee of $100.00 payable to the State of Alaska - 3) Location As-Staked plat 4) Days vs. Depth drilling curve 5) Drilling Procedure 6) Wellbore Schematic 7) Pressure and casing design information. 8) Description of the BOP equipment to be used per 20 AAC 25.035 (a)(1) and (b) 9) Cement program description 10) Drilling fluid program description 11) A summary of potential well hazards If you have any questions or require additional information, please contact the undersigned at 907-277- 1003 or Jesse Mohrbacher at 907-258-3446.. Sincerely, J. Edward Jones ` " ~ Vice President Engineering and Operations Aurora Gas, LLC Attachments 10333 Richmond Avenue, Suite 710 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 .~.,. ~~Urorc'I Si L.LC • Three Mile Creek Unit No. 2 Anticipated Well Coufiguration Displaced 2 7/8" x 5.5" annulus and tubing w/ 1 % - 2% inhibited brine Beluga Perfs Beluga Perfs 5.5", 15.5#, K-55 casing set at 5299' MD Cemented with Class G 13 3/8" 72# H-40 conductor drilled to 80'f 2 7/8", 6.5#, 8rd EUE tubing 12 1/4"hole drilled to 500' MD TVD. 9.625" 36# BTC J-55 Casing to 500' MD, Cemented with 14.5 ppg Gas- Block Type I cement slurry system to surface 5.5" Ret/Hyd set packers Aurora Gas; LLC. 7MCUNo. 2 Drilling Program Drilling Program: Three Mile Creek Unit No. 2 1. File and insure all necessary permits and applications are in place. 2. Mob in rig and RU. 13 3/8" conductor has been pre-installed. Install 13 5/8" 5M starting head. 3. Rig up diverter and mud Ioggers.~Test and calibrate all PVT and gas sensor equipment. Provide 24 hr notice to AOGCC inspectors for chance to witness diverter test. 4. Notify AOGCC and pertinent agencies when ready to start drilling operations. 5. Prepare spud mud system using recycled mud from previous drilling project, weight up to ~10 ppg. Load, strap and drift 9 5/8" surface casing. 6. PU 7 7/8" bit and drill pilot hole to 500 ft, using 6 1/4" stabilized BHA. Watch for gas in shallow coals and sands. 'Attempt to TD casing landing point in siltstone or claystone, i.e. avoid surface TD in coal bed. If possible, plan TD to correlate with casing tally so when landed, cementing head is at floor level. 7. POOH LD 7 7/8" pilot hole BHA and PU 12 '/" stabilized BHA or hole opener. Open 7 7/8" surface hole to 12'/" to TD achieved in step 6. 8. Condition hole for running 9 5/8" surface casing, POOH, LD 12 1/4" BHA. 9. Run and cement (new) 9 5/8" 36 #/ft, K-55 BTC surface casing at 500' installing 1 centralizer /joint centered on 1st 4 joints above shoe, and 1 centralizer every 2nd joint there after, cement to surface. Shoe joint connection at float shoe and float collar must be Baker-Locked. Cementing will be single stage using 14.5 ppg gas block enhanced Type I cement at 100% excess volume. 10. RD cementers, nipple down diverter, cut casing and install 11" 3000 psi we{Ihead A section. 11. RU and test 11" 3M BOP stack and 5M choke manifold. Test stack and surface equipment to 3000 psi../Pressure test casing to 1500 psi for 15 minutes or as required on approved Permit to Drill. 12. PU 8 '/2" bit, bit sub and RIH w/ 6 '/" collars, drill out float equipment and shoe. Condition /treat mud as needed for cement contamination, drill 20' OH. Pull back into shoe and perform FIT to 15.0 ppg MWE with low volume test pump. Record results. TOH, LD 6'/" collars while POOH. 13. PU 4 3/" directional drilling assembly w/ 7 7/8" bit, motor and DIR MWD assembly, non-mag DC's, jars and HWD as specified by directional hand. s 14. RIH and directionally drill 7 7/8". ole to 5299' MD (4900' TVD) TD per directional plan, or other as directed by Aurora Gas geologist. While drilling, load tally and drift load 5 '/Z" casing on racks. Monitor well and volumes carefully. Be '" prepared to shut well in and weight up immediately if flow or excessive gas build up in mud is noticed. Anticipated mud weights required are 9.5 - 10 ppg. -~ Do not exceed fracture gradient determined in step 11. Attempt to TD 7 7/8" production hole to correlate with casing tally so when landing pipe, cementing head is at floor level. Aurora Gas LI,C. Page 1 of ~ 10 Rev. 1.0 ~ 9i'30~2005 • Aur•oraGczs, LLC TMCUNo. 2 Drilling.Pr•ograrn 15. Condition hole, short trip and prepare for running wireline logs. 16. POOH, rack back drillstring and RU wireline BOP's and lubricator and logging . tools. Log 9-5/8" cased hole section w/gamma ray sensor, Log OH section with logging suite as directed by Aurora Gas. RD wireline. 17. RIH w/ 7 7/8" drilling assembly to TD and condition hole for running 5 %2" casing. Ensure cementing head has proper connections or proper cross-over is available for quick rig up. 18. POOH while laying down drillpipe and BHA, RU to run casing. Verify cementer's equipment is ready. 19. Change out pipe rams for 5 %2" casing. 20. Run 5 '/2" 15.5# BTC K-55 casing installing 1 centralizer per joint centered on 1st 4 joints above shoe, and 1 centralizer every 2nd joint there after to 1 jt inside surface casing shoe. Install centralizers every 3rd joint there-after to surface. Shoe joint connection at float shoe and float collar must be Baker-Locked. While running casing, fill every 3rd joint. Be prepared to RU and wash to bottom. 21. RU cementers, cement per attached cementing program from TD back to surface.`A 13.5 ppg lead and 15.8 ppg Class G tail cement system will be used. Tail slurry to be of sufficient volume to cover 5 '/2" CH x 7 7/8" OH annulus to 1000 ft. See attached cementing info for preliminary volume estimates. While pumping cement, reciprocate pipe a minimum of 20 feet until cement goes around the shoe. Land casing within 2 - 5 ft of bottom if possible. Displace cement w/ brine to minimize contamination on clean-out. When displacement is finished, bump plug, check floats, drain and wash down stack, check annulus for flow, center casing w/annular preventer and WOC. 22. RD cementers, .nipple down stack, land casing in slips and cut casing. 23. Install 11" X 7 1/16" tubing spool, 7 1/16" X 11" DSA, mud cross and reinstall BOP stack. Pressure test BOP and surface equipment to 3000 psi. Pressure test casing to 2000 psi for 15 minutes and record results. 24. C/O 5 %2" rams to 2 7/8" for workstring. PU bit and casing scraper and RIH with 2 7/8" tubing to top of float collar. After circulating out cement debris, clean brine for perforating by running through centrifuge and filtering. POOH, LD bit and casing scraper. Strap tubing on TOH to validate tally. 25. PU wireline BOP's, lubricator, pressure test all. PU perforating guns, RIH to depth as determined from OH logs and perforate zones of interest. Watch for pressures in casing after shooting. POOH, LD perf gun, RD wireline. 26. RU and RIH with test packer assembly on workstring. Connect to surface flow test equipment. RU and swab in well for flow test, record results. Ki11 well. 27. Repeat steps 24 and 25 until all zones of interest have been penetrated for production. 28. POOH. Aurora Gas I.LC. Page 2 of 10 Rev. 1.0 _ 9130/2005 Aurora Gas, I,LC. • T.",!t%ICUNo. 2 Drilling Program 29. Pick up and assemble completion assembly which will use retrievable type packers, sand exclusion screens, sliding sleeves and other jewelry as necessary. Exact configuration to be determined by test results. Please see Figure I for proposed completion scenario. Packer is to be 75 ft minimum above upper-most screen. RIH with completion and set completion at appropriate depth. POOH. 30. RIH with 2 7/8" 6.5# EUE 8rd production tubing and seal assembly, space out and stab into packer, hang off in tubing head and lock down. Install blanking plug in profile nipple at bottom of tubing. Pressure test tubing to 2000 psi, pull blanking plug. 31. RU and swab in well, allow to clean up, record rates and pressures then shut in 32. Install BPV at surface, nipple down and remove BOP stack. Install wellhead tree. RD and remove all rig equipment. 33. Prepare site for well testing and surface production facilities. 34. File completion reports with proper agencies. Site Access: The TMCU No. 2 well will be accessible via a new gravel road that is connected to TMCU No. 1 site, an active producing facility. Rig: Aurora Well Service, Rig No. 1 (AWS 1) will be used to drill the TMCU No. 2 well. The Alaska Oil and Gas Conservation Commission has information on this rig and equipment as it has been in use for the last (3) years on other Aurora Gas operations. The pits, BOP system and mud equipment configuration will be the same as that used for previous work. Survey Program: The 12 '/" surface hole will be drilled verticallyrand the survey program wi11 consist of inclination only single-shot survey obtained at 500' in accordance with 20 AAC 25.050 (a) (1) & (2). The survey will be acquired while drilling the 7 7/8" pilot hole. The 7 7/8" production hole will be drilled directionally.'For all directional work, wellbore surveys will be taken at maximum of 100 ft intervals,'per AAC 25.050 (a)(1) with intervals likely to be surveyed more frequent while steering. Logging Program: Aurora will have mud loggers on site for the duration of drilling activities and Schlumberger will provide wireline logging services. A gamma ray log will be run across the surface casing interval. Proposed logs at this time are: TMCU No. 2 Proposed Logging Program Well Section De theft OH CH Lo T e 12 1/4" Surface 0 - 500 N/A: No open-hole logs planned for surface at this time. GR onl in cased hole. -~' 7 7/8" Production Hole 640 - i ~ry`~ .~ ,~ ` p.. ~~ Platform Express: Array Induction, Compensated Neutron, Litho-Density, SP, GR, DSI and FMI. Also -~ MDT and Sidewall cores. 5 1/2" Int. Cs 640 - GR/CBL/CCL Surface - TD 0 - Mud Lo in Services 5y. /° Aurora Gar LLC. Page 3 of 10 Rev. 1.0 ~ 9`30./2005 ! ~ .Quroru Cias, LLC. TMCUNo. 2 Drilling Program BOP Equipment: Aurora Gas, LLC will use the same BOP system they have been using for the last (3) years which will consist of the following: 12 1/4" surface hole: While drilling the 12 1/4" surface hole, a 13 5/8" 5M annular w/ 13 5/8" diverter spool and 10" diverter line will be used. Information on this system is already on file at the AOGCC. Per 20 AAC 25.035 (c)(1)(A) there is a requirement that the diverter line outlet size be at least 16" in diameter or (B) at least as large as the hole size being drilled. Since Aurora does not have access to a diverter spool with an outlet line ID which fulfills this requirement, a 7 7/8" pilot hole will be drilled to 500' and then opened to 12'/" prior to running 9 5/8" casing. '--' 7 7/8" Production Hole: An 11" 3000 PSI WP Schafco (Shaffer Equivalent) BOP system will be used which is configured with an 11" 3000 PSI WP annular preventer, (1) 3000 PSI WP double gate with a set of pipe rams installed sized to fit the pipe being run and a set of blind rams and (1) 11" 3000 PSI WP rated drilling spool. BOP tests will be performed to 3000 psi. The annular preventer will be tested to 1500 psi. Again, this is the same equipment Aurora has been using all along and information on the system is on file at the AOGCC. Pressure Considerations: 12 1/4" surface hole: The maximum anticipated surface pressure (MASP) for this hole section is based on a 10 ppg formation pressure equivalent at 500'. This results in a MASP of 205 psi. ~~ Once the 9 5/8" casing is set, the MASP would be the frac gradient at the shoe which is estimated at 20 ppg equivalent less a gas column. The MASP for this situation is 465 psi. 7 7/8" Production Hole: Based on records from the original TMCU No. 1, a pressure gradient of 0.46 to 0.53 psi/ft can be expected at TD. Using this information, the maximum anticipated bottom-hole pressure to be encountered would be expected at TD, 4900' TVD, with potential formation pressure of 2597 psi.Maximum anticipated surface pressure "MASP" can be calculated by subtracting the gas gradient of .11 psi/ft '° from pore pressure gradient of .53 psi / ft and multiplying by the total TVD depth. =>MASP = (.53 - .11) * 4900 = 2058 psi .' Drilling Fluids: The drilling fluids are being furnished by Baroid Drilling Fluids who has extensive experience with drilling activities in this area. An experienced mud engineer i will be on site at all times while drilling to monitor rheologies and make recommendations. Surface Hole Recommendations Mud Type: 6%KCI, EZ Mud, or recycled mud from previous wells. Aurora Gas LLC. Page 4 of ~ 10 Rev. 1.0 9~`3Q/2005 Aurora Gas, LLC. Properties: • TMCU No. 2 Drilling Program Density Viscosity Plastic Viscosity Yield Point API FL pH 0 - 500' 10.0 45 - 65 16 - 23 20 - 30 <5 8.5-9.5 System Formulation: 6%KCI, EZ Mud (if no used mud is available) Product Concentration Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) BARAZAN D 1.25-1.5 ppb (as required 25 YP) EZ MUD DP 0.75 ppb (begin with .2 ppb) PAC-L or DEXTRID LT 1.5 to 2.0 ppb ALDACIDE G 0.1 ppb Barite Aslif needed BARACOR 700 1 ppb BARASCV D 0.5 ppb (add as the well spuds) • Mix in order as listed • Add polymers slowly to minimize fisheyes Recycle fluids as appropriate. No over pressured zones were encountered nor any major hole ~ problems were seen on TMCU No. 1. Occasional short trips will be made to help alleviate any tight hole and hole cleaning problems. Production Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: ~ ~~~.~'~ ~,..~~-,~~ .. _ 1.~.\ ~ r~,~`~~°~.~~ Density Viscosit Plastic Viscosity Yield Point v~.-w• ~ API FL pH 640 - 4730' 9.8 - 10.0 40-50 6 - 15 13 - 25 <5 8.5-9.5 System Formulation: 6°1°KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) Barazan D 1.25 ppb (as required 13-20 YP) Dextrid 2-3 ppb EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Baroid as/if needed Baracor 700 1 ppb Barascav D 0.5 b maintain er dilution rate D_rilling Fluid Handling System: Shale Shaker, Mud Cleaner, Centrifuge, PVT monitors Casing /Cementing Program: All casing is new. Analysis (attached) indicates casing program as designed provides adequate safety factors for this well. All casing strings with the exception of the 13 3/8" conductor will be cemented in place using industry standard casing cementing techniques utilizing a casing shoe, float equipment, top and bottom wiper plugs and centralizers installed as needed. Z ~ols- Aurora Gas LLC. Page S of 10 Kev.1.0 _ 9!30/2005 ~QZtT'OYa Gas, L.LC. TMCU No. 2 Drilling Prograrta TMCU No. 2, 13 3/8" 72# K-55 Conductor Analvsis and Cementina Program The conductor for TMCU No. 2 will be installed by driving the 13 3/8" pipe to 95' MD or drilled and driven to this depth. Joints will welded together and a drive shoe will be welded to the bottom joint. No cementing is required. TMCU No. 2, 9 5/8" 36# J-55 BTC Surface Casing Analvsis and Cementing Proqram The 9 5/8" surface casing will be cemented from the proposed setting depth of 500' to -' surface with a 14.5 ppg Type I, gas block enhanced cement system. -------~ Where: 12 1/4" OH Capacity = .1458 bbl/ft 9 5/8" 36# Csg x 12 1/4" OH capacity = .0558 bbl / ft 9 5/8" 36# Csg capacity = .0773 bbl/ft OH x Csg: 500 ft x .0558 bbl / ft x 2 (100 % excess) = 55.8 bbls v Shoe Jt: 38ft x .0773 bbl/ft = 2.94 bb/s Actual volumes to be re-calculated at time of running casing due to potential variation in actual depth from planned. The surface cement system to utilize alias-Block type additive to minimize potential for gas entrainment or channeling. Cement System Weight (ppg) Volume Required Gas-Block enhanced Type I 14.5 60 bbls @ 100% excess Please see attached 9 5/8"surface casing analysis and specifications. TMCU No. 2, 5 1/2" 15.5# J-55 BTC Production Casing Cementing Program i. The 5 1/2" production casing will be cemented in fully from the proposed set depth of 5500' MD to surfacer A 13.5 ppg lead "G" cement followed with a 15.8 ppg "G" tail cement system will be used. This program is designed to insure the intended perforating /production intervals are isolated with 15.8 ppg "G" cement. Where: 5 %" 15.5# csg capacity = .0238 bbl/ft 5 %"15.5# csg X 7 7/8" OH capacity = .0309 bbl/ft 5 %" 15.5# csg X 9 5/8" 36# annular capacity = .0479 bbl/ft 5 %" 15.5# csg displacement = .0056 bbl/ft Lead System: 9 5/8" CH x 5 %"Csg: = 500 ft 500 ft x .0479 bb/s/ft x 1 (0% excess= 24 bbls 7 7/8" OH x 5 %" CSG: 1000 ft - 500 ft = 500 ft Aurora Cias LLC. Page b of 10 Rev. 1.0 _ .4/30/2005 Aut•ora Gas, LLC. TMCU No. 2 Drilling Program 500 ft x .0309bb1/ft x 1.25 (25% excess) = 19.3 bb/s Total Lead System = 43.3 bbls Tail System: 7 7I8" OH x 5 %" Csg: 5299 ft - 1000 ft = 4299 ft 4299 ft x .0309 bbl/ft x 1.25(25% excess)= 166 bbls Shoe Joint = 38' x .0238 bbl/ft = .9044 bbls Total Tail Cmt Volume = 167 bbls Cement System Type Cement Weight (ppq) Volume ~% Excess Lead "G" 13.5 43 bbls@ 25% OH Tail "G" 15.8 210 bbls @ 25% OH Please see attached 5 1/2" production casing analysis and specifications. Drilling Hazards: Common known hazards for drilling in Cook Inlet Basin are as follows: Shallow gas: Shallow gas is a known hazard which exists throughout the area. ~ The northwest side of Cook Inlet is noteworthy for its shallow gas hazard. All responsible personnel will be made aware and a notice of such hazards will be posted in the rig doghouse. There is no record of H2S in the region, however; a -~ gas detection system capable of detecting H2S as well as methane will be installed on the rig with detectors at the floor level, the shale shaker and in the cellar. Coal Seams: The Cook Inlet region is rich in coal seams, inter-bedded between the sands, gravels and sha{es that make up the Beluga and Tyonek formations. Drilling into a coal seam will appear to be a drilling break when drilled with a tri- cone bit. The major hazard of drilling into a coal seam without observing the proper response is the risk of stuck pipe. The proper course of action for preventing stuck pipe is two-fold. First, prior to drilling, insure the drilling fluid system is up to par, per recommendations from the on-site mud engineer. The second step to successfully drilling through coals in the Cook Inlet area is to not get greedy when coals are encountered. When a coal has been encountered, pull back above coal after drilling into it, and circulate, allowing the coal to stabilize. Re-enter, drill some more, and pull back out again. Continue in this fashion until successfully through the coal bed. The key word in successfully drilling the coal beds is patience. It should be remembered that coals behave plastically, and will flow under the weight of the overburden. The deeper the coal, the more pronounced this tendency becomes. For this reason it is critical to maintain the proper weight and viscosity of the drilling fluid to properly remove the coal cuttings, and to hold flowing coals in place. Again, heed the recommended drilling fluid program and advice offered by the on-site Mud Engineer. Aurora Gas LLC. Page ? of'.10 Rev. 1.0 9i"30/2005 Aurora Gas, LL,C. TMCUNo. 2 Dr~illirzg Program Nearby Well's: The TMCU No. 1 well is located 838' away from the proposed ~~ TMCU No. 2 well at the surface. No collision risk with this well exists. Other: Sticky bentonitic clays, boulders, lost returns & differential sticking with overbalanced muds and gas influx while cementing or swabbing while tripping pipe. Aurora Gas LLC'. Page fi of 10 Xev.1.0 9130/2005 Aurora Cias, LLC. TMCUNo. 2 Drilling Program TMCU No. 2 Summary of Drilling Hazards POST THIS NOTICE IN DOGHOUSE ~ There is potential for abnormal pressured shallow gas. ~ ~ There is potential for stuck pipe in coals encountered while drilling from surface to TD. Be extra vigilant while performing hole opener run. Short trip to be performed every 600 ft or 24 hrs whichever comes first. ~ There is no H2S risk anticipated for this well ~ ~l Due to potential for shallow gas kick, very little response time will be afforded to respond. PVT and gas detection systems must be fully operational and functioning at all times, visual flow checks and pit level monitoring are critical. / CONSULT THE "TMCU No. 2" WELL PLAN FOR ADDITIONAL INFORMATION. Aurora Uas LLC. Page 9 of 10 Rev. 1.0 _ 9I3Q/2005 :4urora Uas, L.LC. TMCUNo. 2 Drilling Program Three Mile Creek Unit No. 2 Time vs Depth Plot 1000 2000 Depth MD 3000 4000 5000 0 ~ ` e \ E Vertically drill 12.25" hole to 500' MD, run and cement 9.625" casing, drill out, FIT to 15 ppg MWE. ~ Directionally drill, TD at 5299' MD, OH log well, run and cement 5.5" casing, cleanout, perforate, test and complete well. 10 15 20 25 30 Days .4urora Uas LLC. Rev. 1.0 Page l0 of 1 D 9%30/2005 ~~` '( `'1 ~~~~ • • Aurora Gas, LLC Three Mile Creek Unit No. 2 Casing Properties and Design Verification Casing Performance Properties Internal Collapse Tensile Strength Size Weight Yield Resistance Joint Body TVD MD Design Safety Factor* in. 1( b/ft~ Grade Cnxn si si 1 OOO lbs (ft RKB~ ~> ~ T B C 9-5/8 36 J-55 BTC 3,520 2.020 639 564 500 500 36.9 17.2 9.9 5-1/2 15.5 J-55 BTC 2,020 4,040 300 248 4900 5299 3.4 2.3 2.0 * Tensile design safety factor for 5-1/2" and 9-5/8" casing strings is calculated using pipe weight less buoyancy. Burst design safety factor for the 5-1/2" and 9-5/8" casing strings is calculated from the MASP on the inside based on TMCU No. 1 data and zero backup on the outside at the surface. Collapse design safety factor for the 5-1/2" and 9-5/8" casing strings is calculated at the shoe using the maximum expected mud weight to be used at TD on the outside and the entire cased hole evacuated except for a gas gradient on the inside. L • HALLIBURTi]IO[ Sperry C]rilling Services Aurora Gas, LLC Cook Inlet Three Mile Creek Unit TMCU #2 Alt Pad TMCU #2 Plan: TMCU #2 wp05 • Standard Planning Report -Geographic 29 September, 2005 L J c_ t n D d F- WELL DETAIIS: TMCU #2 Alt Pad Ground Level: 283.8 +N/-S +EJ-W Northing Easdng Latittude Longitude Slot 0.0 0.0 2625013.55 286553.04 61°10'45.946N 151°12'33.648W COMPANY DETAIIS: Aurora Gas, LLC REFERENCE INFORMATION Drilling -ordinate (N/E) Reference: Well TMCU #2 Alt Pad, Grid North Vertical (TVD) Reference: 283.8 + 16 Q 299.Sft (283.8 MSL + 16 K Calculation Method: Minimum Cluvature easured Depth Reference: 283.8 + 16 Q 299.Sft (283.8 MSL + 16 K Error System: ISCWSA Calculation Method: Minimum Curvature Scan Method: Trav. Cylinder North Error Surface: Elliptical Conic Warning Method Rules Based SECTION DETAILS Sec MD Inc Azi TVD +N/-S +P/-W DLeg TFace VSec Targe[ 1 0.0 0.00 323.00 0.0 0.0 0.0 0.00 0.00 0.0 2 530.0 0.00 323.00 530.0 0.0 0.0 0.00 323.00 0.0 3 1118.5 35.31 322.91 1082.0 140.2 -106.0 6.00 0.00 175.7 4 2341.3 35.31 322.91 2079.8 703.9 -532.2 0.00 0.00 882.5 5 2856.9 25.00 323.00 2525.0 910.4 -688.1 2.00 179.79 1141.2 TMCU#2 Tl wp05 6 3568.8 10.76 323.00 3200.8 1084.5 -819.3 2.00 180.00 1359.2 7 5298.5 10.76 323.00 4900.0 ' 1342.4 -1013.6 0.00 0.00 1682.1 TMCU #2 TD wp05 WELA,BORE TARGET DETAII.S Name TVD +N/-S +E1-W Shape TMCU#2 Tl wp05 2525.0 910.4 -688.1 Circle (Radius: 20.0) TMCU #1 1500' STand Otr2550.0 868.4 -1001.7 Polygon TMCU #2 TD wp05 4900.0 1342.4 -1013.6 Circle (Radius: 500.0) CASING DETAIIS No TVD iMD Name Size 1 454.8 454.8 9 5/8" Casing9-5/8 2 4899.9 5298.4 5 112" Casings-I/2 Directional Difficulty Index = 4.61 500 750 1000 1250 1500 1750 Tsuga Tsug. 95% coot TMCU #2 Alt Psd/rMCU #2 wp05 TMCU #2 TD wp05 1750 5 1/2" Casing 1500 00 TFO 180.00 ~ i ~5~ tx 5 ~ )0' Stand Off 't ~ TD az 5298.5 QpC{ ~ 1250 ~ ~ ~5 6 ~ ~ TMCU#2 T l wp05 \ St ld 1729 rt H p a o . ~~~ 1000 ~ TMCU#11500'StandOtT-~- "" -~'~ ry4' ^ + p0o Start DLS 2.00 TFO 180.00 , . . 750 ~ 1729.6 ,~~ ~ ~ Start DLS 2.00 TFO 179.79 ~~`'~ O G Azimuths to Grid North 5~ T ~ True North: 1.06° ~5 v MMagnetic North: 21.05° o ,ti9 250 Magnetic Field ~ Strength: 55621.8nT Start Hold 1222.7 - ~ Dip Angle: 73.91° 0 Date: 7/20/2005 0 StartBui1d6.00 Model: BGGM2005 9 5/8" Casing -250 -1750 -1500 -1250 -1000 -750 -500 -250 0 25 0 West(-)/East(+) (750 ft/in) Tsuy Tsug Tsug Tsui 00 Lsul 5 1/2" Casino TD at 5298.5 -- TMCU #2 TD wp05 TMCU #2 Alt PatI/TMCU #2 wp05 -500 -250 0 250 500 750 1000 1250 1500 1750 2000 2250 Vertical Section at 323.00° (750 fUin) LEGEND ~~ TMCU #1, TMCU #1, TMCU #1 V3 --~- TMCU #2 wp05 Plan: TMCU #2 wPOS (TMCU tY2 Alt Pad/TMCU #2) Created By Cary Taylor Date: 5/20/2005 Checked: Date: Reviewed Date: Approved: Date: s r Sperry Qrilling S®rvice~ Database: EDM 2003.11 Single User Db Company: Aurora Gas, LLC Project: Cook Inlet Site: Three Mile Creek Unit Well: TMCU #2 Alt Pad Wellbore: TMCU.#2 Design: TMCU#2 wp05 Halliburton Energy Services Planning Report -Geographic ~~ Local Co-ordinate Reference: Well TMCU #2 Alt Pad TVD Reference: 283.8 + 16 @ 299.Sft (283.8 MSL + 16 KB) MD Reference: 8 + 16 @ 299.6ft (283.8 MSL + 16 KB) North Reference: Grtd ~ Survey Calculation Method: imum Curvature project Cook Inlet, USA flap System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Leo Datum: NAD 1927 (NADCON CONUS) Aap Zone: Alaska Zone 04 Using geodetic scale factor Site Three Mile Creek Unit Site Position: Northing: 2,624,191.02ft Latitude: 61° 10' 37.818" N From: Map Easting: 286,393.49ft Longitude: 151° 12' 36.591" W Position Uncertainty: 0.0 ft Slot Radius: 0" Grid Convergence: -1.06 ° Well TMCU #2 Alt Pad i Well Position +N/-S 0.0 ft Northing: 2,625,013.55 ft Latitude: 61 ° 10' 45.946" N +E/-W 0.0 ft Easting: 286,553.04 ft Longitude: 151 ° 12' 33.648" W Position Uncertainty 0.0 ft Wellhead Elevation: 0.0 ft Ground Level: 283.8 ft Wehbore TMCU #2 Magnetics Model Name Sample Date Declihatloh Dip Angle i field Strength BGGM2005 7/20/2005 19.99 73.91 ~- ~~ ,tr o__ Design TMCU #2 wp05 Audit Notes: Version: Phase: PLAN Tie On Depth: 0.0 Vertical Section: Depth From (TVD) +N/S +E/-W Direction (ft) (ft) (ft) (°) 0.0 0.0 0.0 323.00 Plan Sections Measured Vertical Dogleg Build Turn '~ Depth Inclination Azimuth Depth +N/~ +E/-W Rate Rate Rate ~O I (ft) (°) (°) (ft) (ft) (ft) (°/100ft) (°/100ft) (°/100ft) (°) Target- 0.0 0.00 323.00 0.0 0.0 0.0 0.00 0.00 0.00 0.00 530.0 0.00 323.00 530.0 0.0 0.0 0.00 0.00 0.00 323.00 1,118.5 35.31 322.91 1, 082.0 140.2 -106.0 6.00 6.00 0.00 0.00 2,341.3 35.31 322.91 2,079.8 703.9 -532.2 0.00 0.00 0.00 0.00 2,856.9 25.00 323.00 2,525.0 910.4 -688.1 2.00 -2.00 0.02 179.79 TMCU#2 T1 wp05 3,568.8 10.76 323.00 3,200.8 1,084.5 -819.3 2.00 -2.00 0.00 180.00 5,298.5 10.76 323.00 4,900.0 1,342.4 -1,013.6 0.00 0.00 0.00 0.00 TMCU #2 TD wp05 9/29/2005 3:02:33PM Page 2 of 5 COMPASS 2003.118ui1d 48 Sperry Drilling Services Halliburton Energy Services Planning Report -Geographic DataGast3i EDM 2003.11 Single User Db Company: Aurora Gas, LLC Project: Cook Inlet ' Site: Three Mile'Creek Unit Weil: TMCU #2 Alt Pad Wellbore; TMCU #2 Design;. TMCU #2 wp05 Planned Survey Measured Vertical Depth Inclination Azimuth Depth (fti ( °) ~,~ ~~~ 0.0 0.00 323.00 0.0 100.0 0.00 323.00 100.0 200.0 0.00 323.00 200.0 300.0 0.00 323.00 300.0 400.0 0.00 323.00 400.0 454.8 0.00 323.00 454.8 9 5/8" Casing 500.0 0.00 323.00 500.0 ~ 530.0 0.00 323.00 530.0 starts~ud s.oo 550.0 1.20 322.91 550.0 600.0 4.20 322.91 599.9 650.0 7.20 322.91 649.7 700.0 10.20 322.91 699.1 750.0 13.20 322.91 748.1 800.0 16.20 322.91 796.4 850.0 19.20 322.91 844.0 900.0 22.20 322.91 890.8 920.6 23.44 322.91 909.8 Tsuga 2-2 950.0 25.20 322.91 936.6 1,000.0 28.20 322.91 981.2 1,050.0 31.20 322.91 1,024.7 1,100.0 34.20 322.91 1,066.7 1,118.5 35.31 322.91 1,082.0 Start Hold 1222.7. 1,200.0 35.31 322.91 1,148.5 1,300.0 35.31 322.91 1,230.1 1,400.0 35.31 322.91 1,311.7 1,500.0 35.31 322.91 1,393.3 1,600.0 35.31 322.91 1,474.9 1,700.0 35.31 322.91 1,556.5 1,777.6 35.31 322.91 1,619.8 7suga 23 1,800.0 35.31 322.91 1,638.1 1,900.0 35.31 322.91 1,719.7 2,000.0 35.31 322.91 1,801.3 2,100.0 35.31 322.91 1,882.9 2,200.0 35.31 322.91 1,964.5 2,300.0 35.31 322.91 2,046.1 2,341.3 35.31 322.91 2,079.8 Start DLS 2.00 TFO179.79 2,400.0 34.14 322.92 2,128.0 2,500.0 32.14 322.93 2,211.7 2,600.0 30.14 322.95 2,297.3 2,683.1 28.48 322.96 2,369.8 Tsuga 2-4 2,700.0 28.14 322.97 2,384.7 2,773.6 26.67 322.98 2,450.0 Tsuga 2-4.26 2,800.0 26.14 322.99 2,473.6 2,856.9 25.00 323.00 2,525.0 Start DLS 2.OO TFO180.00 - TMCU#2 T1 wp05 2,884.4 24.45 323.00 2,550.0 TMCU #1 1500' Stand Off 2,900.0 24.14 323.00 2,564.2 Lout Co-ordinate Reference: TVD Refierence: MD Reference: North f~efere~ce: Survey-Calculation Method:. _ +N/-S (ft) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 2.0 6.0 12.0 20.1 30.2 42.4 56.5 62.8 72.5 90.4 110.2 131.7 140.2 177.7 223.8 269.9 316.0 362.1 408.3 444.0 454.4 500.5 546.6 592.7 638.8 684.9 703.9 730.6 774.2 815.5 848.0 854.4 881.4 890.8 910.4 919.6 924.7 +E/-W tff) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.1 -1.5 -4.5 -9.1 -15.2 -22.9 -32.0 -42.7 -47.5 -54.8 -68.4 -83.3 -99.6 •106.0 ••134.4 ••169.2 -204.1 -238.9 -273.8 •308.6 •335.7 •343.5 -378.4 •413.2 •448.1 •482.9 •517.8 -•532.2 -552.4 -585.3 ••616.5 •641.0 -645.8 -666.2 -673.3 -688.1 -695.0 Well TMCU #2 Alt Pad 283.8 + 16 @ 299.8ft (283.8 MSL + 16 KB) 283.8 + 16 @ 299.8ft (283.8 MSL + 16 KB) Grid um Curvature Map Map Northing Easfing Latitude Longitude (fY) <{ft) 2,625,013.55 286,553.04 61 ° 10' 45.946" N 151 ° 12' 33.648" W 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 2,625,013.55 286,553.04 61 ° 10' 45.946" N 151 ° 12' 33.648" W 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 2,625,013.71 286,552.91 61° 10' 45.947" N 151° 12' 33.651" W 2,625,015.59 286,551.49 61 ° 10' 45.966" N 151 ° 12' 33.681" W 2,625,019.55 286,548.50 6.1 ° 10' 46.004" N 151 ° 12' 33.743" W 2,625,025.58 286,543.94 61° 10' 46.063" N 151° 12' 33.838" W 2,625,033.67 286,537.83 61° 10' 46.141" N 151° 12' 33.966" W 2,625,043.79 286,530.18 61 ° 10' 46.239" N 151 ° 12' 34.126" W 2,625,055.91 286,521.01 61° 10' 46.357" N 151° 12' 34.317" W 2,625,070.01 286,510.35 61° 10' 46.494" N 151° 12' 34.540" W 2,625,076.38 286,505.53 61°10'46.556" N 151° 12'34.641" W 2,625,086.04 286,498.23 61 ° 10' 46.650" N 151 ° 12' 34.793" W 2,625,103.96 286,484.69 61 ° 10' 46.823" N 151 ° 12' 35.076" W 2,625,123.71 286,469.75 61 ° 10' 47.015" N 151 ° 12' 35.388" W 2,625,145.26 286,453.46 61 ° 10' 47.224" N 151 ° 12' 35.729" W 2,625,153.69 286,447.09 61 ° 10' 47.306" N 151 ° 12' 35.862" W 2,625,191.25 286,418.69 61° 10' 47.671" N 151° 12' 36.455" W 2,625,237.35 286,383.84 61° 10' 48.118" N 151° 12' 37.183" W 2,625,283.46 286,348.98 61° 10' 48.566" N 151° 12' 37.911" W 2,625,329.57 286,314.12 61° 10' 49.014" N 151° 12' 38.640" W 2,625,375.67 286,279.26 61° 10' 49.461" N 151° 12' 39.368" W 2,625,421.78 286,244.41 61 ° 10' 49.909" N 151 ° 12' 40.096" W 2,625,457.57 286,217.35 61° 10' 50.256" N 151° 12' 40.661" W 2,625,467.89 286,209.55 61 ° 10' 50.356" N 151 ° 12' 40.824" W 2,625, 513.99 286,174.69 61 ° 10' 50.804" N 151 ° 12' 41.553" W 2,625,560.10 286,139.83 61° 10' 51.252" N 151° 12'42.281" W 2,625,606.21 286,104.97 61 ° 10' 51.699" N 151 ° 12' 43.009" W 2,625,652.31 286,070.12 61 ° 10' 52.147" N 151 ° 12' 43.737" W 2,625,698.42 286,035.26 61° 10' 52.594" N 151° 12' 44.466" W 2,625,717.46 286,020.86 61° 10' 52.779" N 151° 12' 44.766" W 2,625,744.14 286,000.70 61° 10' 53.038" N 151° 12' 45.188" W 2,625,787.75 285,967.75 61° 10' 53.462" N 151° 12' 45.876" W 2,625,829.01 285,936.59 61° 10' 53.862" N 151° 12' 46.527" W 2,625,861.48 285,912.08 61° 10' 54.177" N 151° 12' 47.039" W 2,625,867.87 285,907.26 61 ° 10' 54.239" N 151° 12' 47.140" W 2,625,894.91 285,886.86 61 ° 10' 54.502" N 151 ° 12' 47.566" W 2,625,904.28 285,879.79 61 ° 10' 54.593" N 151 ° 12' 47.714" W 2,625,923.90 285,865.00 61° 10' 54.783" N 151° 12' 48.023" W 2,625,933.10 285,858.08 61 ° 10' 54.873" N 151° 12' 48.168" W 2,625,938.20 285,854.23 61° 10' 54.922" N 151° 12' 48.248" W 9/29/2005 3:02:33PM Page 3 of 5 COMPASS 2003.11 Build 48 ,~~. Sperry Grilling Services Database: EDM 2003.11 Single User Db Company:. Aurora Gas, LLC Project: Cook Inlet Site: Three Mile Creek U nit Well: TMCU #2 Alt Pad Wellbore: TMCU #2 Design: TMCU #2 wp05 i Planned Survey Measured Vertical Depth inclination 'Azi muth Depth (ft) { °) (°) (ft) 3,000.0 22.14 323.00 2,656.1 3,100.0 20.14 323.00 2,749.4 3,200.0 18.14 323.00 2,843.9 3,300.0 16.14 323.00 2,939.4 3,400.0 14.14 323.00 3,035.9 3,500.0 12.14 323.00 3,133.3 3,568.8 10.76 323.00 3,200.8 Start Hold 1729.6 3,600.0 10.76 323.00 3,231.4 3,700.0 10.76 323.00 3,329.6. 3,781.6 10.76 323.00 3,409.8 Tsuga 2-5 3,800.0 10.76 323.00 3,427.9 3,900.0 10.76 323.00 3,526.1 4,000.0 10.76 323.00 3,624.4 4,100.0 10.76 323.00 3,722.6 4,200.0 10.76 323.00 3,820.8 ~ 4,300:0 10.76 323.00 3,919.1 ~ 4,400.0 10.76 323.00 4,017.3 4,443.2 10.76 323.00 4,059:8 Tsuga 2-6 4,500.0 10.76 323.00 4,115.6 4,600.0 10.76 323.00 4,213.8 4,700.0 10.76 323.00 4,312.0 4,800.0 10.76 323.00 4,410.3 ~ 4,900.0 10.76 323.00 4,508.5 5,000.0 10.76 323.00 4,606.8 5,100.0 10.76 323.00 4,705.0 5,196.5 10.76 323.00 4,799.8 Tsuga 2-7 5,200,0 10.76 323.00 4,803.2 5,298.4 10.76 323.00 4,899.9 5112" Casing Halliburton Energy Services Planning Report -Geographic Local Co-orciinate Reference; Wefl TMCU #2 Alt Pad TVD Reference: 283.8 + 16 @ 299.8ft{283.8 MSL + 16 KB) MD Reference: 283:8 + 16 @ 299.8ft (283.8 MSL+ 16 KB) North Reference: Grid Survey Calculation Method: inimum Curvature +N/-S +E/-W (ft) (ft1 956.1 -722.5 984.9 -744.2 1,011.1 -763.9 1,034.6 -781.7 1,055.5 -797.4 1,073.6 -811.1 1,084.5, -819.3 1,089.2 -822.8 1,104.1 -834.0 1,116.2 -843.2 1,119.0 1,133.9 1,148.8 1,163.7 1,178.6 1,193.6 1,208.5 1,214.9 -845.3 -856.5 -867.7 -879.0 -890.2 -901.4 -912.7 -917.5 1,223.4 -923.9 1,238.3 -935.2 1,253.2 -946.4 1,268.1 -957.6 1,283.0 -968.9 1,297.9 -980.1 1,312.8 -991.3 1,327.2 -1,002.2 1,327.8 1,342.4 -1,002.6 -1,013.6 -1, 013.6 ~ 5,298.5 10.76 323.00 4,900.0 / 1,342.4 TD at 5298.5.-TMCU it2 TD wp05 Map ` , Map NorthiAg Easting Latitude Longitude (ft) (ft) 2,625,969.58 285,830.58 61° 10' 55.227" N 151° 12' 48.742" W 2,625,998.38 285,808.88 61° 10' 55.506" N 151° 12' 49.196" W 2,626,024.56 285,789.15 61 ° 10' 55.761" N 151 ° 12' 49.608" W 2,626,048.10 285,771.42 61° 10' 55.989" N 151° 12' 49.978" W 2,626,068.95 285,755.70 61° 10' 56.191" N 151° 12' 50.307" W 2,626,087.10 285,742.02 61° 10' 56.368" N 151° 12' 50.593" W 2,626,098.02 285,733.80 61° 10' 56.474" N 151° 12' 50.764" W 2,626,102.66 285,730.30 61° 10' 56.519" N 151° 12' 50.838" W 2,626,117.57 285,719.06 61 ° 10' 56.663" N 151 ° 12' 51.072" W 2,626,129.74 285,709.89 61° 10' 56.782" N 151° 12' 51.264" W 2,626,132.48 285,707.83' 61° 10' 56.808" N 151° 12' 51.307" W 2,626,147.40 285,696.59 61° 10' 56.953" N 151° 12' 51.542" W 2,626,162.31 285, 685.35 61 ° 10' 57.098" N 151 ° 12' 51.777" W 2,626,177.22 285,674.12 61 ° 10' 57.242" N 151 ° 12' 52.012" W 2,626,192.13 285,662.88 61° 10' 57.387" N 151° 12' 52.246" W 2,626,207.04 285,651.64 61 ° 10' 57.532" N 151 ° 12' 52.481" W 2,626,221.95 285,640.41 61° 10' 57.677" N 151° 12' 52.716" W 2,626,228.40 285,635.55 61° 10' 57.739" N 151° 12' 52.818" W 2,626,236.86 285,629.17 61° 10' 57.822" N 151° 12' 52.951" W 2,626,251.77 285,617.93 61° 10' 57.966" N 151° 12' 53.186" W 2,626,266.69 285,606.70 61° 10' 58.111" N 151° 12' 53.420" W 2,626,281.60 285,595.46 61° 10' 58.256" N 151° 12' 53.655" W 2,626,296.51 285,584.23 61° 10' 58.401" N 151° 12' 53.890" W 2,626,311.42 285,572.99 61° 10' 58.545" N 151° 12' 54.125" W 2,626,326.33 285,561.75 61° 10' 58.690" N 151° 12' 54.360" W . 2,626,340.72 285,550.91 61° 10' 58.830" N 151° 12' 54.586" W 2,626,341.24 285,550.52 61° 10' 58.835" N 151° 12' 54.594" W 2,626,355.91 285,539.46 61° 10' 58.977" N 151° 12' 54.825" W 2,626,355.93 285,539.45 61° 10' 58.977" N 151° 12' 54.826" W 9129/2005 3:02:33PM Page 4 of 5 COMPASS 2003. i i Build 48 • ~ ~' Halliburton Energy Services Sperry Drilling Services Planning Report -Geographic - Database: EDM 2003.11 Single User Db Local Co-ordinate Reference:. Well TMCU #2 Alt Patl Company: Aurora Gas, LLC TVD Reference: 283.8 + 16 @ 299.S ft (283.8 MSL + 16 KB) Project: Cook Inlet MD Reference: 283.8 + 16 @ 299.8 ft (283.8 MSL + 16 KB) Site: Three Mile Creek Unit North Reference: Grid W811: TMCU #2 AIt Pad SurveyCalcutation Method:. Minimum Curvature Well6ore: TMCU #2 Design: TMCU #2 wp05 T g is I Target Name i - htt/miss target Dlp Angle. Dip:Dlr. TVD +N/-S +E/-1N Northing Fasting - Shape (°) (°) (ft) ft ft {ft) (ft) Latitude Lohgkude , TMCU#2 T1 wp05 0.00 0.00 2,525.0 910.4 -688.1 2,625,923.90 285,865.00 61 ° 10' 54.783" N 151 ° 12' 48.023" W -plan hits target - Circle (radius 20.0) TMCU #1 1500' Stand 0.00 0.00 2,550.0 868.4 -1,001.7 2,625,881.93 285,551.38 61° 10' 54.313" N 151° 12' 54.403" W - plan misses by 311.Oft at 2884.4ft MD (2550.0 TVD, 919. 6 N, -695.0 E) - Polygon Point 1 0.0 0.0 2,625,866.19 285,850.90 Point 2 201.0 17.7 2,625,899.62 285,752.37 Point 3 313.6 15.5 2,625,897.38 285,864.96 Point 4 501.4 -2.2 2,625,879.72 286,052.75 Point 5 671.4 -42.0 2,625,839.92 286,222.75 Point6 501.4 -2.2 2,625,879.72 286,052.75 Point? 313.6 15.5 2,625,897.42 285,864.86 Point 8 201.0 17.7 2,625,899.62 285,752.37 TMCU #2 TD wp05 0.00 0.00 4,900.0 1,342.4 -1,013.6 2,626,355.88 285,539.49 61° 10' 58.977" N 151° 12' 54.825" W - plan hits target - Circle (radius 500.0) Casing Point$ Measured Vertical Casing Holg Depth Depth N$me -Diameter Qiameter - 454.8 454.8 9 5/8" Casing 9-5/8 12-1/4 ~ 5,298.4 4,899.9 5 1/2" Casing 5-1/2 7-7/8 Formations i Measured Vertical Dip Depth. Depth Name Lithology Dip Direction (ff) (ff) (~) tom) 920.6 909.8 Tsuga 2-2 0.00 1,777.6 1,619.8 Tsuga 2-3 0.00 2,683.1 2,369.8 Tsuga 2-4 Clay 0.00 2,773.6 2,450.0 Tsuga 2-4.26 0.00 3,781.6 3,409.8 Tsuga 2-5 Clay 0.00 4,443.2 4,059.8 Tsuga 2-6 0.00 5,196.5 4,799.8 Tsuga 2-7 Clay 0.00 Plan Annotations _--- Measured .Vertical Local Coordinates ', Depth Depth +N!-S +)J-N/ Comment (ft) (ft) (~) (ft) 530.0 530.0 0.0 0.0 Start Build 6.00 1,118.5 1,082.0 140.2 -106.0 Start Hold 1222.7 2,341.3 2,079.8 703.9 -532.2 Start DLS 2.00 TFO 179.79 2,856.9 2,525.0 910.4 -688.1 Start DLS 2.00 TFO 180.00 3,568.8 3,200.8 1,084.5 -819.3 Start Hold 1729.6 5,298.5 4,900.0 1,342.4 -1,013.6 TD at 5298.5 9/29/2005 3:02:33PM Page 5 of 5 COMPASS 2003.11 Build 48 TMCU #2 wp05 Cook Inlet TMCU #2 Alt Pad MD, Inc, Azim., SSTVD, TVD, N/S „ E/W „ Y „ X „ DLS, V. S., Comments, E/W, N/S (° /100ft) , (ft) , (Deg) , (Deg) , (ft) , (ft) , (ft ) , , (ft) , , (ft) , , (ft) , , ° /100ft , (ft) , (ft) (ft) 0.00, 0.00, 323.00, -299.80, 0.00, O.OO,N, O.OO,E, 2625013.547,N, 286553.040,E, 0.000, 0.00, 100.00, 0.00, 323.00, -199.80, 100.00, O.OO,N, O.OO,E, 2625013.547,N, 286553.040,E, 0.000, O.OO,MwD (1) 200.00, 0.00, 323.00, -99.80, 200.00, O.OO,N, O.OO,E, 2625013.547,N, 286553.040,E, 0.000, 0.00, 300.00, 0.00, 323.00, 0.20, 300.00, O.OO,N, O.OO,E, 2625013.547,N, 286553.040,E, 0.000, 0.00, 400.00, 0.00, 323.00, 100.20, 400.00, O.OO,N, O.OO,E, 2625013.547,N, 286553.040,E, 0.000, 0.00, 454.80, 0.00, 323.00, 155.00, 454.80, O.OO,N, O.OO,E, 2625013.547,N, 286553.040,E, 0.000, 0.00,9 5/8" Casing 500.00, 0.00, 323.00, 200.20, 500.00, O.OO,N, O.OO,E, 2625013.547,N, 286553.040,E, 0.000, 0.00, 530.00, 0.00, 323.00, 230.20, 530.00, O.OO,N, O.OO,E, 2625013.547,N, 286553.040,E, 0.000, O.OO,start Build 6.00 550.00, 1.20, 322.91, 250.20, 550.00, 0.17,N, 0.13,w, 2625013.714,N, 286552.914,E, 6.000, 0.21, 600.00, 4.20, 322.91, 300.13, 599.93, 2.05,N, 1.55,w, 2625015.592,N, 286551.494,E, 6.000, 2.56, " 650.00, 7.20, 322.91, 349.88, 649.68, 6.O1,N, 4.54,w, 2625019.553,N, 286548.499,E, 6.000, 7.53, 700.00, 10.20, 322.91, 399.30, 699.10, 12.04,N, 9.10,w, 2625025.585,N, 286543.939,E, 6.000, 15.09, 750.00, 13.20, 322.91, 448.26, 748.06, 20.13,N, 15.22,w, 2625033.671,N, 286537.825,E, 6.000, 25.23, 800.00, 16.20, 322.91, 496.61, 796.41, 30.24,N, 22.87,w, 2625043.791,N, 286530.175,E, 6.000, 37.92, 850.00, 19.20, 322.91, 544.24, 844.04, 42.37,N, 32.03,w, 2625055.915,N, 286521.009,E, 6.000, 53.12, 900.00, 22.20, 322.91, 591.01, 890.81, 56.47,N, 42.69,w, 2625070.O10,N, 286510.352,E, 6.000, 70.79, 920.60, 23.44, 322.91, 610.00, 909.80, 62.84,N, 47.51,w, 2625076.384,N, 286505.534,E, 6.000, 78.78,TSUga 2-2 950.00, 25.20, 322.91, 636.79, 936.59, 72.50,N, 54.81,w, 2625086.039,N, 286498.234,E, 6.000, 90.88, 1000.00, 28.20, 322.91, 681.45, 981.25, 90.41,N, 68.36,w, 2625103.956,N, 286484.688,E, 6.000, 113.34, 1050.00, 31.20, 322.91, 724.88, 1024.68, 110.17,N, 83.29,w, 2625123.714,N, 286469.751,E, 6.000, 138.11, 1100.00, 34.20, 322.91, 766.95, 1066.75, 131.72,N, 99.58,w, 2625145.257,N, 286453.464,E, 6.000, 165.12, 1118.54, 35.31, 322.91, 782.18, 1081.98, 140.15,N, 105.96,w, 2625153.691,N, 286447.088,E, 6.000, 175.70,Start Hold 1222.7 1200.00, 35.31, 322.91, 848.65, 1148.45, 177.71,N, 134.35,w, 2625191.246,N, 286418.695,E, 0.000, 222.78, 1299.99, 35.31, 322.91, 930.25, 1230.05, 223.82,N, 169.21,w, 2625237.353,N, 286383.837,E, 0.000, 280.58, 1399.99, 35.31, 322.91, 1011.85, 1311.65, 269.93,N, 204.07,w, 2625283.460,N, 286348.979,E, 0.000, 338.39, 1499.99, 35.31, 322.91, 1093.45, 1393.25, 316.04,N, 238.93,w, 2625329.567,N, 286314.121,E, 0.000, 396.19, 1599.99, 35.31, 322.91, 1175.05, 1474.85, 362.14,N, 273.79,w, 2625375.674,N, 286279.263,E, 0.000, 453.99, 1699.99, 35.31, 322.91, 1256.65, 1556.45, 408.25,N, 308.65,w, 2625421.780,N, 286244.405,E, 0.000, 511.80, 1777.62, 35.31, 322.91, 1320.00, 1619.80, 444.05,N, 335.71,w, 2625457.573,N, 286217.345,E, 0.000, 556.67,TSUga 2-3 1799.99, 35.31, 322.91, 1338.26, 1638.06, 454.36,N, 343.51,w, Page 1 • • TMCU #2 wp05 2625467.887,N, 286209.547,E, 0.000, 569.60, 1899.99, 35.31, 322.91, 1419.86, 1719.66, 500.47,N, 378.37,w, 2625513.994,N, 286174.689,E, 0.000, 627.40, 1999.99, 35.31, 322.91, 1501.46, 1801.26, 546.58,N, 413.23,w, 2625560.1O1,N, 286139.831,E, 0.000, 685.21, 2099.99, 35.31, 322.91, 1583.06, 1882.86, 592.69,N, 448.09,w, 2625606.208,N, 286104.973,E, 0.000, 743.01, 2199.99, 35.31, 322.91, 1664.66, 1964.46, 638.80,N, 482.95,w, 2625652.314,N, 286070.116,E, 0.000, 800.81, 2299.99, 35.31, 322.91, 1746.26, 2046.06, 684.91,N, 517.81,w, 2625698.421,N, 286035.258,E, 0.000, 858.62, 2341.29, 35.31, 322.91, 1779.96, 2079.76, 703.95,N, 532.20,w, 2625717.461,N, 286020.863,E, 0.000, 882.49,start ~~5 2.00 TFO 179.79 2399.99, 34.14, 322.92, 1828.20, 2128.00, 730.62,N, 552.37,w, 2625744.136,N, 286000.699,E, 2.000, 915.93, 2499.99, 32.14, 322.93., 1911.93, 2211.73, 774.24,N, 585.32,w, 2625787.747,N, 285967.746,E, 2.000, 970.59, 2599.99, 30.14, 322.95, 1997.52, 2297.32, 815.50,N, 616.48,w, 2625829.008,N, 285936.585,E, 2.000, 1022.30, 2683.11, 28.48, 322.96, 2070.00, 2369.80, 847.97,N, 640.99,w, 2625861.480,N, 285912.076,E, 2.000, 1062.98,TSUga 2-4 2699.99, 28.14,- 322.97, 2084.86, 2384.66, 854.36,N, 645.82,w, 2625867.869,N, 285907.255,E, 2.000, 1070.99, 2773.59, 26.67, 322.98, 2150.20, 2450.00, 881.41,N, 666.21,w, 2625894.910,N, 285886.859,E, 2.000, 1104.86,TSUga 2-4.28 2799.99, 26.14, 322.99, 2173.85, 2473.65, 890.78,N, 673.28,w, 2625904.283,N, 285879.791,E, 2.000, 1116.60, 2856.92, 25.00, 323.00, 2225.20, 2525.00, 910.40,N, 688.07,w, 2625923.903,N, 285865.003,E, 2.000, 1141.17,start BLS 2.00 TF0 180.00 - TMCU#2 T1 wp05 2884.44, 24.45, 323.00, 2250.20, 2550.00, 919.59,N, 695.OO,w, 2625933.096,N, 285858.076,E, 2.000, 1152.68,TMCU #1 15`00' Stand off 2899.99, 24.14, 323.00, 2264.37, 2564.17, 924.70,N, 698.85,w, 2625938.205,N, 285854.226,E, 2.000, 1159.08, 2999.99, 22.14, 323.00, 2356.32, 2656.12, 956.08,N, 722.49,w, 2625969.584,N, 285830.580,E, 2.000, 1198.37, 3099.99, 20.14, 323.00, 2449.59, 2749.39, 984.88,N, 744.20,w, 2625998.382,N, 285808.879,E, 2.000, 1234.43, 3199.99, 18.14, 323.00, 2544.06, 2843.86, 1011.06,N, 763.93,w, 2626024.563,N, 285789.150,E, 2.000, 1267.21, 3299.99, 16.14, 323.00, 2639.61, 2939.41, 1034.60,N, 781.66,w, 2626048.095,N, 285771.418,E, 2.000, 1296.68, 3399.99, 14.14, 323.00, 2736.13, 3035.93, 1055.45,N, 797.38,w, 2626068.950,N, 285755.703,E, 2.000, 1322.80, 3499.99, 12.14, 323.00, 2833.51, 3133.31, 1073.61,N, 811.05,w, 2626087.102,N, 285742.024,E, 2.000, 1345.53, 3568.85, 10.76, 323.00, 2901.00, 3200.80, 1084.52,N, 819.28,w, 2626098.018,N, 285733.798,E, 2.000, 1359.19,start Hold 1729.6 3599.99, 10.76, 323.00, 2931.59, 3231.39, 1089.17,N, 822.78,w, 2626102.661,N, 285730.299,E, 0.000, 1365.01, 3699.99, 10.76, 323.00, 3029.83, 3329.63, 1104.08,N, 834.02,w, 2626117.573,N, 285719.063,E, 0.000, 1383.68, 3781.59, 10.76, 323.00, 3110.00, 3409.80, 1116.25,N, 843.19,w, 2626129.741,N, 285709.893,E, 0.000, 1398.92,TSUga 2-5 3799.98, 10.76, 323.00, 3128.07, 3427.87, 1118.99,N, 845.25,w, 2626132.484,N, 285707.826,E, 0.000, 1402.35, 3899.98, 10.76, 323.00, 3226.31, 3526.11, 1133.90,N, 856.49,w, 2626147.395,N, 285696.590,E, 0.000, 1421.02, 3999.98, 10.76, 323.00, 3324.55, 3624.35, 1148.81,N, 867.73,w, 2626162.307,N, 285685.353,E, 0.000, 1439.70, 4099.98, 10.76, 323.00, 3422.80, 3722.60, 1163.73,N, 878.97,w, 2626177.218,N, 285674.117,E, 0.000, 1458.37, 4199.98, 10.76, 323.00, 3521.04, 3820.84, 1178.64,N, 890.20,w, 2626192.129,N, 285662.880,E, 0.000, 1477.04, 4299.98, 10.76, 323.00, 3619.28, 3919.08, 1193.55,N, 901.44,w, 2626207.040,N, 285651.644,E, 0.000, 1495.71, Page 2 • • TMCU #2 wp05 4399.98, 10.76, 323.00, 3717.52, 4017.32, 1208.46,N, 912.68,w, 2626221.952,N, 285640.407,E, 0.000, 1514.38, 4443.22, 10.76, 323.00, 3760.00, 4059.80, 1214.91,N, 917.54,W, 2626228.400,N, 285635.548,E, 0.000, 1522.46,TS Uga 2-6 4499.98, 10.76, 323.00, 3815.76, 4115.56, 1223.37,N, 923.91,w, 2626236.863,N, 285629.171,E, 0.000, 1533.06, 4599.98, 10.76, 323.00, 3914.00, 4213.80, 1238.29,N, 935.15,w, 2626251.774,N, 285617.934,E, 0.000, 1551.73, 4699.98, 10.76, 323.00, 4012.24, 4312.04, 1253.20,N, 946.39,w, 2626266.686,N, 285606.698,E, 0.000, 1570.40, 4799.98, 10.76, 323.00, 4110.48, 4410.28, 1268.11,N, 957.62,w, 2626281.597,N, 285595.462,E, 0.000, 1589.07, 4899.98, 10.76, 323.00, 4208.72, 4508.52, 1283.02,N, 968.86,w, 2626296.508,N, 285584.225,E, 0.000, 1607.74, 4999.98, 10.76, 323.00, 4306.96, 4606.76, 1297.94,N, 980.10,w, 2626311.420,N, 285572.989,E, 0.000, 1626.42, 5099.98, 10.76, 323.00, 4405.20, 4705.00, 1312.85,N, 991.34,w, 2626326.331,N, 285561.752,E, 0.000, 1645.09, 5196.47, 10.76, 323.00, 4500.00, 4799.80, 1327.24,N, 1002.18,w, 2626340.719,N, 285550.910,E, 0.000, 1663.10,TS Uga 2-7 5199.98, 10.76, 323.00, 4503.45, 4803.25, 1327.76,N, 1002.57,w, 2626341.242,N, 285550.516,E, 0.000, 1663.76, 5298.36, 10.76, 323.00, 4600.10, 4899.90, 1342.43,N, 1013.63,w, 2626355.913,N, 285539.461,E, 0.000, 1682.13,5 1/2" Casing 5298.47, 10.76, 323.00, 4600.20, 4900.00, 1342.45,N, 1013.64,w, 2626355.928,N, 285539.449,E, 0.000, 1682.15,T~ at 5298.5 - TMCU #2 TD wp05 Page 3 • • HALLIBURTON Sperry L7rilling Services Aurora Gas, LLC Cook Inlet Three Mile Creek Unit TMCU #2 Alt Pad TMCU #2 Plan: TMCU #2 wp05 Standard Planning Report -Geographic 29 September, 2005 ~~~~ ~psrry Oriliing S~ervica~ 0 5110 ' taco t50a .. - 2aaa `- 2500 - 300a tooa `~ ~ ...I _~aan ., -`~ _. wco 0 0~ r~ am 95/8" Casing 500 0° `x-00 - - -Start Build 6.00 5° 750 10° 15° Tsuga 2-2 1~p 1000 25 3p Start Hold 1222.7 35 lzso 150 1500 ~5 c L d O U H • WELL DETAIIS: TMCU #2 Alt Pad Ground Level: 283.8 +N/-S +E/-W Northing Fasting Latitude Longitude Slot ~ 0.0 0.0 2625013.55 ~~ 286553.04 ~ 61°10'45.946N 151°12'33.648W COMPANY DETAIIS: Aurora Cms, LLC REFERENCE INFORMATION Drilling -ordinate (WE) Reference: Well TMCU #2 Alt Pad, Grid North Vertical (lVD) Reference: 283.8 + 16 Q 299.8ft (283:8 MSL + 16 Calculation Method Minimum Curvaure easured Depth Reference: 283.6 + 16 Q 299.8ft (283.8 MSL + 16 K Error System: ISCWSA Calculation Method: Minimum Curvature ,,, Scan Method: Trav. Cylinder North Error Surface: Elliptical Conic Wazning Method: Rules Based SECTION DETAIIS Sec MD Inc Azi TVD +N/-S +E/-W DLeg TPace VSec Target 1 0.0 0.00 323.00 0.0 0.0 0.0 0.00 0.00 0.0 2 530.0 0.00 323.00 530.0 0.0 0.0 0.00 323.00 0.0 3 1118.5 35.31 322.91 1082.0 140.2 -106.0 6.00 0.00 175.7 4 2341.3 35.31 322.91 2079.8 703.9 -532.2 0.00 0.00 882.5 5 2856.9 25.00 323.00 2525.0 910.4 -688.1 2.00 179.79 1141.2 TMCU#2 T1 wp05 6 3568.8 10.76 323.00 3200.8 1084.5 -819.3 2.00 180.00 1359.2 7 5298.5 10.76 323.00 4900.0 ~ 1342.4 -1013.6 0.00 0.00 1682.1 TMCU #2 TD wp05 Start DLS 2.00 TFO 179.79 ~ 2~v Start DLS 2.00 TFO 180.00 OQT MCU #1 1500' Stand Off 15° 3500 Start Hold 1729.6 Directional Difficulty Index = 4.61 2000 95° o conf. TMCU #2 AIt Pad/rMCU iK1 wp05 TMCU #2 TD wp05 1750 5 1/2" Casing ~ 1500 a~5° to TD az 5298.5 ~ ~ '% 1250 ~ ~5 / ~~ ! TMCU#2 T7 wp05 Start Hold 1729.6 1000 Q ~~/ TMCU #I 1500' Stand Off -- _ _ ~~ ' ~ titi v Start DLS 2.00 TFO 180.00 ti~ ' 750 v Start DLS 2.00 TFO 179.79 ~~50 U ~ 500 G T Azimuths to Grid North ° `~ True North: 1.06 ~ MMagnetic North: 21.05° ~o V •ti 250 Magnetic Field ~ Strength:55621.8nT Start Hold 1222.7 1 Dip Angle: 73.91 ° o Date: 7/20/2005 Start Build 6.00 0 Model: BGGM2005 9 5/8" Casing -250 -1750 -1500 -1250 -1000 -750 -500 -250 0 250 West(-)/East(+) (750 ft/in) ""y° `-' S 1/2" Casino - , TD at 5298.5 - TMGU #2 TD wp05 TMCU #2 Alt PadITMCU #2 wp05 -500 -250 0 250 500 750 1000 1250 1500 1750 2000 2250 Vertical Section at 323.00° (750 fUin) ~,.l-1 '~' Halliburton Energy Services Planning Report -Geographic Sp®rry Oriliing Services Database: EDM 2003.11 Single UserDb Local Coordinate Reference: Well TMCU #2 A!t Pad Company: Aurora Gas,. LLC TVD Reference: 283.8 + 16 @ 299:8ft (283.8 MSL + 16 KB) Project: Cook Inlet MD Reference: + 16 @ 299.Sft (283.8 MSL + 16 KB) Site: Three Mile Creek Unit North Reference: Grid We1L• TMCU #2 Aft Pad Syrvey Caleula6gn Methods Minimum Cuwature Wellbore: TMCU #2 Design:. TMCU #2 wp05 roject Cook Inlet, USA lap System: US State Piane 1927 (Exact solution) System Datum: Mean Sea Level eo Datum: NAD 1927 (NADCON CONUS) lap Zone: Alaska Zone 04 Using geodetic scale factor to Three Mile Creek Unit ite Position: Northing: 2,624,191.02ft Latitude: 61° 10' 37.818" ~om: Map Easting: 286,393.49ft Longitude: 151 ° 12' 36.591" ~ ~sition Uncertainty: 0.0 ft Slot Radius: 0" Grid Convergence: -1.06 ° Well TMCU #2 AIt Pad Well Position +N/-S 0.0 ft Northing: 2,625,013.55 ft Latitude: 61 ° 10' 45.946" N +EI-W 0.0 ft Easting: 286,553A4 ft Longitude: 151° 12'.33.648" W Position Uncertainty 0.0 ft Wellhead Elevation: 0.0 ft Ground Level: 283.8 ft Wellbore TMCU #2 Magnetics Model Name Sample Date. Declination °Dip Ant31e , Field Strength " BGGM2005 7/20/2005 19.99 73.91 55,6`L2 ~ Design TMCU #2 wp05 Audit Notes: Version: Vertical Section: Phase: PLAN Tie On Depth: Depth From (TVI)) +Nt-S - , +E/-W (ft) (ft) (ft) 0.0 0.0 00 0.0 Direction lo! 323.00 _ { Plan Sea6ons Mffasured Depth Inclination Azimtrth 0.0 0.00 323.00 530.0 0.00 323.00 1,118.5 35.31 322.91 2,341.3 35.31 322.91 2,856.9 . 25.00 323.00 3,568.8 10.76 323.00 5,298.5 10.76 323.00 Vertical Dogleg Build Turn Depth #y/.$ +E/-yy Rate Rate Rate TFO ~ (ft} ` ~(ft) (ft) (°(100ftj (°I100ft) (°1100ft) target (°) o.0 0.0 0.0 0.00 0.00 0.00 0.00 530.0 0.0 0.0 0.00 0.00 0.00 323.00 1,082.0 140.2 -106.0 6.00 6.00 0.00 0.00 2,079.8 703.9 -532.2 0.00 0.00 0.00 0.00 2,525.0 910.4 -688.1 2.00 -2.00 0.02 179.79 TMCU#2 T1 wp05 3,200.8 1,084.5 -819.3 2.00 -2.00 0.00 180.00 4,900.0 1,342.4 -1,013.6 0.00 0.00 0.00 0.00 TMCU #2 TD wp05 9/292005 3:02:33PM Page 2 of 5 COMPASS 2003.118uifd 48 • ~~ Sperry drilling S~rvic®r [3iit26ase: EDM 2003:11 Single User Db Company: Aurora Gas, LLC Project: Cook Inlet Site: Three Mile Creek Unit Well: TMCU #2 AIt Pad Wellboie: TMCU #2 Design: TMCU.#2 wp05 r- -- 'Planned Survey Halliburtan Energy Services Planning Report -Geographic Local Co-ordinate RefereriCe: Well TMCU #2 Alt Pad TVD Reference: 283.8 + 16 @ 299.Sft (283.8 MSL + 16 KB) MD Reference: 2 8 + 16 @ 299.8ft (283.8 MSL + 16 KB) North Reference: Grid Survey Calculation Method: nimum Curvature ~ Measurod Vertical gepth Inclination Azimuth Depth +N!•S ~ ~ ~~) (°) (°) ~~~) {!tj 0.0 0.00 323.00 0.0 0.0 100.0 0.00 323.00 100.0 0.0 200.0 0.00 323.00 200.0 0.0 300.0 0.00 323.00 300.0 0.0 400.0 0.00 323.00 400.0 0.0 454.8 0.00 323.00 454.8 0.0 9 5/$".Casing 500.0 0.00 323.00 500.0 -"Y 530.0 0.00 323.00 530.0 ~ Start Build 11.00 550.0 1.20 322.91 550.0 600.0 4.20 322.91 599.9 650.0 7.20 322.91 649.7 700.0 10.20 322.91 699.1 750.0 13.20 322.91 748.1 800.0 16.20 322.91 796.4 850.0 19.20 322.91 844.0 900.0 22.20 322.91 890.8 920.6 23.44 322.91 909.8 Tsuga 2-2 950.0 25.20 322.91 936.6 1,000.0 28.20 322.91 981.2 1,050.0 31.20 322.91 1,024.7 1,100.0 34.20 322.91 1,066.7 1,118.5 35.31 322.91 1,082.0 Start Hold 1222.7 1,200.0 35.31 322.91 1,148.5 1,300.0 35.31 322.91 1,230.1 1,400.0 35.31 322.91 1,311.7 1,500.0 35.31 322.91 1,393.3 1,600.0 35.31 322.91 1,474.9 1,700.0 35.31 322.91 1,556.5 1,777.6 35.31 322.91 1,619.8 Tsuga 2-3 1,800.0 35.31 322.91 1,638.1 1,900.0 35.31 322.91 1,719.7 2,000.0- 35.31 322.91 1,801.3 2,100.0 35.31 322.91 1,882.9 2,200.0 35.31 322.91 1,964.5 2,300.0 35.31 322.91 2,046.1 2,341.3 35.31 322.91 2,079.8 Start OLS 2.00 TFO 179.79 2,400.0 34.14 322.92 2,128.0 2,500.0 32.14 322.93 2,211.7 2,600.0 30.14 322.95 2,297.3 2,683.1 28.48 322.96 2,369.8 Tsuga 2-4 2,700.0 28.14 322.97 2,384.7 2,773.6 26.67 322.98 2,450.0 Tsuga 2-4.26 2,800.0 26.14 322.99 2,473.6 2,856.9 25.00 323.00 2,525.0 .Start DLS 2.OO TFO180.00 - TMCU#2 T7 wp05 2,884.4 24.45 323.00 2,550.0 TMCU #1'7500' Stand Off 2.900.0 24.14 323.00 2.564.2 Map Map +E/-W Northing Fasting Latitude Longitude eft) (ft) (ft) 0.0 2,625,013.55' 286,553.04 ~ 61° 10' 45.946" N 151° 12' 33.648" W 0.0 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 0.0 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 0.0 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 0.0 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 0.0 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 0.0 0.0 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 0.0 0.0 2,625,013.55 286,553.04 61° 10' 45.946" N 151° 12' 33.648" W 0.2 -0.1 2,625,013.71 286,552.91 61 ° 10' 45.947" N 151 ° 12' 33.651" W 2.0 -1.5 2,625,015.59 286,551.49 61° 10' 45.966" N 151° 12' 33.681" W 6.0 -4.5 2,625,019.55 286,548.50 61° 10' 46.004" N 151° 12' 33.743" W 12.0 -9.1 2,625,025.58 286,543.94 61° 10' 46.063" N 151° 12' 33.838" W 20.1 -15.2 2,625,033.67 286,537.83 61° 10' 46.141" N 151° 12' 33.966" W 30.2 -22.9 2,625,043.79 286,530.18 61° 10' 46.239" N 151° 12' 34.126" W 42.4 -32.0 2,625,055.91 286,521.01 61° 10' 46.357" N 151° 12' 34.317" W 56.5 -42.7 2,625,070.01 286,510.35 61° 10' 46.494" N 151° 12' 34.540" W 62.8 -47.5 2,625,076.38 286,505.53 61° 10' 46.556" N 151° 12' 34.641" W 72.5 -54.8 2,625,086.04 286,498.23 61° 10' 46.650" N 151° 12' 34.793" W 90.4 -68.4 2,625,103.96 286,484.69 61 ° 10' 46.823" N 151 ° 12' 35.076" W 110.2 -83.3 2,625,123.71 286,469.75 61 ° 10' 47.015" N 151 ° 12' 35.388" W 131.7 -99.6 2,625,145.26 286,453.46 61 ° 10' 47.224" N 151 ° 12' 35.729" W 140.2 -106.0 2,625,153.69 286,447.09 61° 10' 47.306" N 151° 12' 35.862" W 177.7 -134.4 2,625,191.25 286,418.69 61 ° 10' 47.671" N 151 ° 12' 36.455" W 223.8 -169.2 2,625,237.35 286,383.84 61° 10' 48.118" N 151° 12' 37.183" W 269.9 -204.1 2,625,283.46 286,348.98 61° 10' 48.566" N 151° 12' 37.911" W 316.0 -238.9 2,625,329:57 286,314.12 61° 10' 49.014" N 151° 12' 38.640" W 362.1 -273.8 2,625,375.67 286,279.26 61° 10' 49.461" N 151° 12' 39.368" W 408.3 -308.6 2,625,421.78 286,244.41 61° 10' 49.909" N 151° 12' 40.096" W 444.0 -335.7 2,625,457.57 286,217.35 61° 10' 50.256" N 151° 12' 40.661" W 454.4 -343.5 2,625,467.89 286,209.55 61° 10' 50.356" N 151° 12'40.824" W 500.5 -378.4 2,625,513.99 286,174.69 61° 10' 50.804" N 151° 12' 41.553" W 546.6 -413.2 2,625,560.10 286,139.83 61° 10' 51.252" N 151° 12' 42.281" W 592.7 -448.1 2,625,606.21 286,104.97 61 ° 10' 51.699" N 151 ° 12' 43.009" W 638.8 -482.9 2,625,652.31 286,070.12 61° 10' 52.147" N 151° 12' 43.737" W 684.9 -517.8 2,625,698.42 286,035.26 61° 10' 52.594" N 151° 12' 44.466" W 703.9 -532.2 2,625,717.46 286,020.86 61° 10' 52.779" N 151° 12' 44.766" W 730.6 -552.4 2,625,744.14 286,000.70 61° 10' 53.038" N 151° 12' 45.188" W 774.2 -585.3 2,625,787.75 285,967.75 61° 10' 53.462" N 151° 12' 45.876" W 815.5 -616.5 2,625,829.01 285,936.59 61° 10' 53.862" N 151° 12' 46.527" W 848.0 -641.0 2,625,861.48 285,912.08 61° 10' 54.177" N 151° 12' 47.039" W 854.4 -645.8 2,625,867.87 285,907.26 61 ° 10' 54.239" N 151° 12' 47.140" W 881.4 -666.2 2,625,894.91 285,886.86 61° 10' 54.502" N 151° 12' 47.566" W 890.8 -673.3 2,625,904.28 285,879.79 61° 10' 54.593" N 151° 12' 47.714" W 910.4 -688.1 2,&25,923.90 285,865.00 61 ° 10' 54.783" N 151 ° 12' 48.023" W 919.6 -695.0 2,625,933.10 285,858.08 61° 10' 54.873" N 151° 12' 48.168" W 924.7 -698.8 2.625.938.20 285.854.23 61 ° 10' 54.922" N 151 ° 12' 48.248" W 9/29/2005 3:02:33PM Page 3 of 5 COMPASS 2003.118ui1d 48 • ~,.' Sp®riry Drilling Services Halliburton Energy Services Planning Report -Geographic • Database:` Company:.. Project: Site: Well: Wellbore: Design: EDM 2003:11 Single User Db Aurora Gas, LLC Cook Inlet Three Mile Creek Unit TMCU #2 Alt Pad TMCU #2 TMCU #2 wp05 Local Co-ordinate Reference: TVp Reference: MD Reference: North Reference: Survey Calculation Method; Well TMCU #2 Alt Pad 283.8 + 16 @ 299.8ft (283.8 MSL + 16 KB) 283.8 + 16 @ 29g.8ft (283.8 MSL + 16 KB) Grid Minimum Curvature Planned Survey .Measured Vertical Map Map bepth Inclin ation Azimuth Depth +N/-S +El-W Northing Fasting Latitude Lohgitude (ftj ( o) (`) (ft) (ft) (ft) (ft) (ft) 3,000.0 22.14 323.00 2,656.1 956.1 -722.5 2,625,969.58 285,830.58 61° 10'55.227" N 151° 12' 48.742" W 3,100.0 20.14 323.00 2,749.4 984.9 -744.2 2,625,998.36 285,808.88 61° 10' 55.506" N 151° 12' 49.196" W 3,200.0 18.14 323.00 2;843.9 1,011.1 -763.9 2,626,024.56 285,789.15 61° 10' 55.761" N 151° 12' 49.608" W 3,300.0 16.14 323.00 2,939.4 1,034.6 -781.7 2,626,048.10 285,771.42 61° 10' 55.989" N 151° 12' 49.978" W 3,400.0 14.14 323.00 3,035.9 1,055.5 -797.4 2,626,068.95 285,755.70 61° 10' 56.191" N 151° 12' 50.307" W 3,500.0 12.14 323.00 3,133.3 1,073.6 -811.1 2,626,087.10 285,742.02 61° 10' 56.368" N 151° 12' 50.593" W 3,568.8 10.76 323.00 3,200.8 1,084.5 -819.3 2,626,098.02 285,733.80 61° 10' 56.474" N 151° 12' 50.764" W StartNOld 1729.6 3,600.0 10.76 323.00 3,231.4 1,089.2 -822.8 2,626,102.66 285,730.30 61° 10' 56.519" N 151° 12' 50.838" W 3,700.0 10.76 323.00 3,329.6 1,104.1 -834.0 2,626,117.57 285,719.06 61 ° 10' 56.663" N 151 ° 12' 51.072" W 3,781.6 10.76 323.00 3,409.8 1,116.2 -843.2 2,626,129.74 285,709.89 61 ° 10' 56.782" N 151 ° 12' 51.264" W Tsuga 2-5 3,800.0 10.76 323.00 3,427.9 1,119.0 -845.3 2,626,132.48 285,707.83 61 ° 10' 56.808" N 151 ° 12' 51.307" W 3,900.0 10.76 323.00 3,526.1 1,133.9 -856.5 2,626,147.40 285,696.59 61° 10' 56.953" N 151° 12' 51.542" W 4,000.0 10.76 323.00 3,624.4 1,148.8 -867.7 2,626,162.31 285,685.35 61° 10' 57.098" N 151° 12' 51.777" W 4,100.0 10.76 323.00 3,722.6 1,163.7 -879.0 2,626,177.22 285,674.12 61 ° 10' 57.242" N 151 ° 12' 52.012" W 4,200.0 10.76 323.00 3, 820.8 1,178.6 -890.2 2,626,192.13 285,662.88 61 ° 10' 57.387" N 151 ° 12' 52.246" W 4,300.0 10.76 323.00 3,919.1 1,183.6 -901.4 2,626,207.04 285,651.64 61° 10' 57.532" N 151° 12' 52.481" W 4,400.0 10.76 323.00 4,017.3 1,208.5 -912.7 2,626,221.95 285,640.41 61° 10' 57.677" N 151° 12' 52.716" W 4,443.2 10.76 323.00 4,059.8 1,214.9 -917.5 2,626,228.40 285,635.55 61° 10' 57.739" N 151° 12' 52.818" W Tsuga 2-6 4,500.0 10.76 323.00 4,115.6 1,223.4 -923.9 2,626,236.86 285,629.17 61° 10' 57.822" N 151° 12' 52.951" W 4,600.0 10.76 323.00 4,213.8 1,238.3 -935.2 2,626,251.77 285;617.93 61° 10' 57.966" N 151° 12' 53.186" W 4,700.0 10.76 323.00 4,312.0 1,253.2 -946.4 2,626,266.69 285,606.70 61° 10' 58.111" N 151° 12' 53.420" W 4,800.0 10.76 323.00 4,410.3 1,268.1 -957.6 2,626,281.60 285,595.46 61° 10' 58.256" N 151° 12' 53.655" W 4,900.0 10.76 323.00 4,508.5 1,283.0 -968.9 2,626,296.51 285,584.23 61° 10' 58.401" N 151° 12' 53.890" W 5,000.0 10.76 323.00 4,606.8 1,297.9 -980.1 2,626,311.42 285,572.99 61° 10' 58.545" N 151° 12' 54.125" W 5,100.0 10.76 323.00 4,705.0 1,312.8 -991.3 2,626,326.33 285,561.75 61° 10' 58.690" N 151° 12' 54.360" W 5,196.5 10.76 323.00 4,799.8 1,327.2 -1,002.2 2,626,340.72 285,550.91 61° 10' 58.830" N 151° 12' 54.586" W Tsuga 2-7 5,200.0 10.76 323.00 4,803.2 1,327.8 -1,002.6 2,626,341.24 285,550.52 61° 10' 58.835" N 151° 12' 54.594" W 5,298.4 10.76 323.00 4,899.9 1,342.4 -1,013.6 2,626,355.91 285,539.46 61° 10' 58.977" N 151° 12' 54.825" W 5112" Casing 5,298.5 10.76 323.00 4,900.0 '~ 1,342.4 -1,013.6 2,626,355.93 285,539.45 61° 10' 58.977" N 151° 12' 54.826" W li TD at 5298.5 -TMCU #2 TD wp05 ~, 9!29/2005 3:02:33PM Page 4 of 5 COMPASS 2003.11 Build 48 • (®1 Halliburton Energy Services Planning Report -Geographic Sperry Drilling Services Database: EDM 2003.11 Single User Db Local Corordinate Reference: Well TMCU #2 Alt Pad Comparry: Aurora Gas, LLC ND Reference:: 283.8 + 16 @ 299.Sft (283.8 MSL + 16 KB) Project: Cook Inlet MD Reference: 283.8 + 16 @ 299.8ft (283.8 MSL + 16 KB) Site: Three Mile Creek Unit No+th Reference: Grid Well: TMGU #PAIt Pad Survey Calculation Method: Minimum Curvature Wellbore: TMCU #2 Design: TMCU #2 wp05 ~7argefs -- Target Name . . - hit/miss target Dip Ahgle Dip Dir. TVD +N/-S +E/-W Northing Eastmg - Shape (e) (') (ft) ,. ft `ft (ft) Ift) Latitude Lpngitud6. TMCU#2 T1 wp05 0.00 0.00 2,525.0 910.4 -688.1 2,625,923.90 285,865.00 61° 10' 54.783" N 151° 12' 48.023" W - plan hits target - Circle (radius 20.0) TMCU #1 1500' Stand 0.00 0.00 2,550.0 868.4 -1,001.7 2,625,881.93 285,551.38 61 ° 10' 54.313" N 151° 12' 54.403" W - plan misses by 311.Oft at 2884.4ft MD (2550.0 TVD, 919. 6 N, -695.0 E) -Polygon Point 1 0.0 0.0 2,625,866.19 285,850.90 Point2 201.0 17.7 2,625,899.62 285,752.37 Point 3 313.6 15.5 2,625,897.38 285,864.96 Point4 501.4 -2.2 2,625,879.72 286,052.75 Point 5 671.4 -42.0 2,625,839.92 286,222.75 Point6 501.4 -2.2 2,625,879.72 286,052.75 Point? 313.6 15.5 2,625,897.42 285,86496 Point 8 201.0 17.7 2,625,899.62 285,752.37 TMCU #2 TD wp05 0.00 0.00 4,900.0 1,342.4 -1,013.6 2,626,355.88 285,539.49 61° 10' 58.977" N 151° 12' 54.825" W - plan hits target - Circle (radius 500.0) ~ Casing Paints. - :Measured Vertical Casing Hole Depth ' depth Name Diameter Diameter eft) ({t) , (.,) (~.) 454.8 454.8 9 5/8" Casing 9-5/8 12-1/4 5,298.4 4,899.9 5 1/2" Casing 5-1/2 7-7/8 Formations _ _- Measured Vertical Dip Depth Depth Name:. Lithology Dip Direction (ft) (~) (°) (°) 920.6 909.8 Tsuga 2-2 0.00 1,777.6 1,619.8 Tsuga 2-3 0.00 2,683.1 2,369.8 Tsuga 2-4 Clay 0.00 2,773.6 2,450.0 Tsuga 2-4.28 0.00 3,781.6 3,409.8 Tsuga 2-5 Clay 0:00 4,443.2 4,059.8 Tsuga 2-6 0.00 5,196.5 4,799.8 Tsuga 2-7 Clay 0.00 T _ ~ Plan Annotations _ - Measured Vertical Local Coordinates. Depth. Depth +tJl-S +E/-W Comment (ff) (ft) (ft) lft) 530.0 530.0 0.0 0.0 Start Build 6.00 1,118.5 1,082.0 140.2 -106.0 Start Hold 1222.7 2,341.3 2,079.8 703.9 -532.2 Start DLS 2.00 TFO 179.79 2,856.9 2,525.0 910.4 -688.1 Start DLS 2.00 TFO 180.00 3,568.8 3,200.8 1,084.5 -819.3 Start Hold 1729.6 5,298.5 4,900.0 1,342.4 -1,013.6 TD at 5298.5 9/29/2005 3:02:33PM Page 5 of 5 COMPASS 2003.118ui1d 48 • • .a~ ~~. ~1;^ ~~~~ ~. .~,;<: .~:'~': ...ar.. r~' M1 nnA. A~AA^AA^.^.^^M1~ . . :~ ~^;~ •. ;~~ ^ ~ ^~~~ .~,,`-..,~h~n A ~ h~~~:. .^~ ~ ^,.~; ^~° ;~. ;.f., A~r :~. ^:~~" ~~ "° .~~ ~~~ ?~- /~~ ~'.b fly- ~ vS ~ :, ':era.^.. _ _ . ,. ~.~~ \ ~ • ~~'0 20 198 2 L~f' ~: 1 2 5 200060: ii' 206 L00980 iii' '' E=.1'~~i'illif-~i{92'ti['~I '! F ~~ ~,t',Ce:. fi('3~J X11 t1r~d AfUGLE T~ VI~~I~ VUdi~i~ C:FiEC;Kif~ly i fir N~tL'`UEtSEfINE,iVT: '.gFj • • TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME `~-~~- t '`~ rGP~ PTD# ~~ "- ~ ~~ ~(;~~z CHECK WHAT ADD-ONS "CLUE" APPLIES (OPTIONS) MULTI The permit is for a new wellbore segment of LATERAL existing well , Permit No, API No. (If API number last two (2) digits Production should continue to be reported as a function of the original API number stated ', are between 60-69) above. PILOT HOLE In accordance with 20 AAC 25.005(f), all (PIT) records, data and logs acquired for the pilot !, hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 - 70/80) from records, data and logs acquired for well (name on permit). SPACING The permit is approved subject to full EXCEP ION ~~ i N~ ,,I.Z~- ~f~' ~'~'" `I!'" r~~~ ~ ` ~~ f compliance with 20 AAC 25.055. Approval to perforate and produce/infect is contingent upon issuance of a conservation order approving a spacing exception. (Company Name) assumes the liability of any protest to the spacing exception that may occur. DRY DITCH SAMPLE ~~ 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. Rev: 04/01/05 C\jody\transmittal_checklist WELL PERMIT CH ECKLIST Field & Pool THREE MILE CK, BELUGA UNDFGAS - 776500 Well Name: THREE MILE CK UNIT 2 Program DEV Well bare seg ^ PTD#:2051430 Company AURORA GAS LLC Initial ClasslType DEV 1 PEND GeoArea 820 Unit 12040 OnlOff Shore On Annular Disposal ^ Administration 1 Permit-fee attached - - - - .Yes - - - - - - - - - - - 2 Lease number appropriate---------------------------_-- ----__--__ N9_-- __--_Correctionmade to-10-407:_Entirewell-lieswithin_ADL_3.88233,--_---____----_--___-_--_-.-_- 3 Uniquewell_nameandnumber____________________________ __________Yes_ _____,-.___-_ 4 Well located in a_defined-pool_____________________________ __________No_- ___ThreeMile_Creek_Po~l_RulesnotappCOyedasof10-4-2004.-Sfd________---.-_____-__.-_--___ 5 Well located p[operdistance_fromdrillingunit_boundary-------------- ------ ---Yes- ---________-__-_________----_--_____--__---_-___-__-,-_----___- 6 Well located proper distance-from other wells_ - _ - - _ _ - Yes - - - - _ Nearest well_in pool is Three Mile Creek Unit No. 1,-1800' away. New pool rules will allow this spacing._ 7 Sufficientacreageayailableindril_lingunit-________._________ __________Yes- __________--__--_________.-_-_____---__-_______ -- 8 If_tleviated,is-wellboreplat_included_________________________ __________ Yes__ _____-_--_-_______ ------------------------------------------------------- 9 Operator only affected party- - - Yes - - - - - - 10 Oper_atorhas_appropriate_bondinforc@______________________ ____------Yes__ ____-Letterofcredit____--------_-______-----_--______--_- --------------------- 11 Permit_canbeissuedwitho_utco_nseryation order__________________ __________Yes__ ___--After Three Mile CreekPo_oLRulesareapproyed._--__________--_--_________--_______ Appr Date 12 Permit_canbeissuedwitho_ulad_ministrative_appr_oval____ __________ _______ _ Yes__ __________--___________- SFD 10!612005 13 Can permit be approved before 15-day wait Yes 14 Well located within area and strata authorizedby_InjectionOrder#(put1O#in_ comments)-{Fpr NA___ _____________________-_-_ ______--___-________---_-_______-__-_-______-_ 15 Allwells-within 114_mile area of review identified {For service well only) _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ _ - _ _ _ - - _ ------------------------------------------------------------------ 16 Pre-produced injector; duration of pre production less than_ 3 months_(For service well only) - NA_ _ - _ _ - _ -------------------------------- 17 ACMP_Finding of Consistency_has been issued_for_this project_ - - - - NA- _ - - -- Engineering 18 Conductorstrinr~_provided------------------------------ ---- Yes- --------------------------------------- -------------------------- 19 Surface casing_proteetsallknown_USDWs____________________ __________Yes-_ _____Surfaceand_productioncasingwill_protectany_freshwaters._-__________-_________--________ 20 _C_MT_vol_adeguate_tocirculate_onconducto[&surf_csg____-_______ ___-______Yes__ ________________-_ ___- ------------------------------------------------- 21 CMT_vol_adeguate.tg tie-in long string to surfcsg Yes 22 _C_MT_willcoverallkno_wn-protluctiyehorizons____________________ __________Yes_ _.-________- 23 Casing designs adequatef_orC,T,6&_permafrost_________________ __________Yes__ __----_________-_--___________-___-__________-_--______---_-__________ 24 Adequatelankage_or reserve pit - - - - - - _ - - Yes - - Rig is_equipped with steel_pits. Although Ielatiyely small, Aurora has successfully drilled similar wells - - .. - . 25 If a_re-drill, has-a-10-4.03 for abandonment been approved _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA- _ _ _ _ - - - - -using this rig. Drilling waste likely handled via Envi[otech._ _ _ _ _ _ - - - _ - _ - _ _ _ _ _ _ - - _ _ _ _ _ _ _ _ _ - 26 Adequatewellboreseparation_proposed______________________ _________-Yes__ _--__Ther@arenowells proximate,-__________--__- ---------------------------------- 27 Iftliverterrequired,doesitmeetregulations_______________-____ ____-----_Yes_ _---_Aurorapl_ans tod[illapilothole_dueto_1.0"diyerterlinesize.___-_--_________----___--__--__-- Appr Date 28 Drihingfluid-program schematic & equip list adeguate_ _ _ - _ _ - - - - - -Yes - - _ - - - - MASP 10.2 EMW. Mud-plans providefor maintaining overbalanced conditions. - - - . - - - - TEM 10/5/2005 29 BOPEs, dolhey meetregu_lation - Yes - - - - - - - - - - - - 30 _B_OPE_press rating appropriate; test to_(put prig in comments)_ _ - - _ - - - - - Yes - _ _ - _ - - MASP calculated at 2058 psi._ 3000_psi-BOP testplanned, - - - _ _ - _ - - _ 31 Choke_manifoldcomp_IieswlAPtRP-53(_May84)________________ __________Yes-_ _-____--___________--__________-___--_______-_-________-____- 32 Work willoccurwithoutoperationshutdo_wn___-_-______________ __________Yes__ _-___--___________---____________- -------------------------------------- 33 Is presence-of H2S gas_probable - - - - - N0 - - - - - - - - - - - 34 Mechanical_condition ofwells within AOR verified ~For_s_ervice well only _ - - - NA_ - _ _ _ _ _ _ Geology 35 Permit_can be issued w/o hydrogen-sulfide measures _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Yes _ _ _ _ _ _ _ None encountered in_TMCU No. 1, drilled 838'_aw_ay through same geologic section, _ - - _ _ _ _ _ _ - _ - . _ - - _ - 36 _D_ata_presented on_ potential overpressure zones- _ Yes - - _ - - _ _ Expectetl_ reservoirpressure is 8,9 to 10.2 ppg_EMW,will be drilled-with_10,0_ppg mud with provisions to_ - _ Appr Date 37 Seismic analysis-of shallow gas zones- _ _ - _ - - - - - _ - - - - - - - - - - - - - - - - - - - NA- - - _ _ _ - -increase mud weight beyond l Q.2 ppg. _ _ _ _ - - - - _ - - ---------------------------------- SFD 10/4/2005 38 Seabed c9ndition survey_(ifgff-shore) - - _ _ - - _ _ _ _ - - NA_ _ _ _ Shallow gas_possible at any time; well will bemud-logged from conductor to-TD and_gas detection_ equipment wilt - 39 -Contactname/phone-for weekly progress-reports[exploratoryonly]_______ ___________N_A--_ -____beemployed._--________-_---_--_____-_-_--_____--_--_--_____-_- Geologic Date: Engineering Date P Date Three Mile Creek Pool Rules must be approved before this permit can be issues. SFD .10!6/2005 Comm`is'sioner: Commissioner: C issio
