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Husky Liwan 3-1-1 Well Booklet

_________________ Husky Liwan 3-1-1


Geological Well Programme ________________________

CONTRACT AREA 29/26 Pearl River Mouth Basin South China Sea Peoples Republic of China

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

TABLE OF CONTENTS

1. SUMMARY WELL DETAILS ................................................ 1 2. PERMIT DETAILS ................................................................ 2 3. REGIONAL GEOLOGY ........................................................ 3 4. PROSPECT DETAILS .......................................................... 7
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 LOCATION ........................................................................................................ 7 TRAP ............................................................................................................... 9 RESERVOIR .................................................................................................... 10 SEAL ............................................................................................................. 11 SOURCE/MIGRATION....................................................................................... 11 GEOLOGICAL PROGNOSIS ............................................................................... 12 EXPECTED SEDIMENTARY SECTION.................................................................. 14 POTENTIAL DRILLING HAZARDS ....................................................................... 15

5. PRELIMINARY DRILLING PLAN....................................... 21 6. WELL EVALUATION.......................................................... 27


6.1 SAMPLING REQUIREMENTS.............................................................................. 27 6.2 MUD LOGGING ............................................................................................... 29 6.3 CORING ......................................................................................................... 30 6.4 LWD ............................................................................................................. 31 6.5 WIRELINE LOGGING PROGRAMME .................................................................... 33 6.5.1 Open Hole Wireline Logging Programme................................................. 35 6.5.2 Logging Run in Sidetrack Hole for Core................................................... 37

7. MINISTRY OF PETROLEUM INDUSTRY WIRELINE DATA REQUIREMENTS ................................................................... 40 8. DRILLING SECTION .......................................................... 41
8.1 GENERAL INFORMATION AND WELL DATA ......................................................... 41 8.2 REFERENCES ................................................................................................. 42 8.3 GEOLOGICAL INFORMATION ............................................................................ 42 8.3.1 Objectives ................................................................................................ 42 8.3.2 Strataigraphy Depths ............................................................................... 42
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8.4 DRILLING OPERATIONS SUMMARY ................................................................... 43 8.4.1 Operations Summary ............................................................................... 43 8.5 POTENTIAL HAZARDS ..................................................................................... 43 8.5.1 Offset Well References ............................................................................ 43 8.5.2 Shallow Hazard Survey............................................................................ 43 8.5.3 Pore Pressure/Fracture Gradients ........................................................... 44 8.5.4 Potential Lost Circulation ......................................................................... 44 8.5.5 Other Hazards.......................................................................................... 44 8.6 CASING PROGRAM ......................................................................................... 45 8.6.1 Casing Properties .................................................................................... 45 8.7 DRILLING OPERATIONS/PROCEDURES ............................................................. 46 8.7.1 Rig Move.................................................................................................. 46 8.7.2 36 Section............................................................................................... 51 8.7.3 26 Hole/20 Surface Conductor Section.................................................. 62 8.7.4 BOPs, Stump Testing, Running and Testing............................................ 75 8.7.5 17 Hole/13 Intermediate Casing Section ......................................... 79 8.7.6 12 Hole/9 Intermediate Casing Section ........................................... 91 8.7.7 8 Hole Section ................................................................................... 103 8.7.8 8 Side Track Hole/7 Liner Section .................................................... 108 8.7.9 Abandonment......................................................................................... 121 8.7.10 Lost Circulation .................................................................................... 124 8.7.11 Equipment / Materials Details .............................................................. 127 8.7.12 Personal Responsibilities ..................................................................... 163 8.7.13 Miscellaneous Forms ........................................................................... 172 8.7.14 General Data........................................................................................ 175

APPENDIX 1............................................................................. 1
LWD LOGGING PROGRAMME ..................................................................................... 1 1.1 LWD - 17 Hole ....................................................................................... 1 1.2 LWD - 12 Hole ....................................................................................... 1 1.3 LWD - 8 Pilot Hole ................................................................................. 2 1.4 LWD - 8 SideTrack Hole ........................................................................ 3

APPENDIX 2............................................................................. 1
DETAILED LOGGING PROGRAMME ............................................................................... 1 2.1 Run 1 - Logging Run at Intermediate Casing - ITD2 ................................... 1 2.2 Run 1 - Descent #2:- GR/VSI...................................................................... 3 2.3 Run 2 - Logging Run at Pilot Hole Total Depth - PTD................................. 4 2.4 Run 2 - Descent #2 and 3:- GR/MDT ( Contingent ): .................................. 6 2.5 Run 2 - Descent #4:- GR/VSI :.................................................................... 7

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LIST OF FIGURES, TABLES & ENCLOSURES

Figure 1: Location Map________________________________________________2 Figure 2: Stratigraphy of the Pearl River Mouth Basin ________________________6 Figure 3: Survey Location of Liwan 3-1-1__________________________________8 Figure 4: Depth Structure Map Near T50 Horizon. ________________________16 Figure 5: Seismic Line 04EC-LW31002. Location of Liwan 3-1-1.______________17 Figure 6: Seismic Line 93EC-1569. Location of Liwan 3-1-1. _________________18
Figure 7: Seismic Line 04EC-LW31002 Basin Configuration and Sedimentary Sequences.19

Figure 8: Prognosis and Summary Evaluation for Liwan 3-1-1. ________________20 Figure 9: Depth vs Time Curve. ________________________________________21 Figure 10: Preliminary Well Design. _____________________________________22 Figure 11: Operational Flowchart Dry Hole Scenario.______________________23 Figure 12: Operational Flowchart HC Below 3160 m Only.__________________24 Figure 13: Operational Flowchart HC in Miocene Turbidites Only. ____________25 Figure 14: Operational Flowchart HC below 3160 m and in Miocene Turbidites. _26 Figure 15: LWD Programme for the Pilot Hole. ____________________________31 Figure 16: Logging and Coring Programme for possible Sidetrack(s). __________32 Figure 17. Well Summary_____________________________________________49 Figure 18. Pore Pressure Graph _______________________________________49 Figure 19. Wellbore Schematic ________________________________________50 Figure 20. 36" Casing Schematic _______________________________________58 Figure 21. 20" Casing Schematic _______________________________________73 Figure 22. BOP Schematic____________________________________________78 Figure 23. 13 3/8" Casing Schematic ____________________________________90 Figure 24. 9 5/8" Casing Schematic ____________________________________102 Figure 25. Drilling Time vs Depth Graph ________________________________168 Figure 26. Drilling Cost vs Depth Graph_________________________________168 Figure 27. Offset Well Designs (1) _____________________________________178 Figure 28. Offset Well Design (2) ______________________________________179

Table 1: Core Analysis Summary of Panyu 27-1-1. _________________________10 Table 2: Geological Prognosis/ Formation Tops. ___________________________13 Table 3: Sampling Programme. ________________________________________27 Table 4: Logging Abbreviations and their Explanations. _____________________33 Table 5: Logging Programme__________________________________________34 Table 6. Stratigraphic Tops ___________________________________________42 Table 7. Casing Design ______________________________________________45 Table 8. Casing Properties____________________________________________45 Table 9. Jetting Schematic ____________________________________________53 Enclosure 1: Summary Prospect Montage.
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Signature Page Date Vice President - Exploration David R. Taylor _____________________________________ Manager, Frontier & International Exploration David D. Johnson _____________________________________ Manager, International Engineering Canada & Frontier Business Unit Janice Knoechel _____________________________________ General Manager Husky Oil China Wing-On Chu _____________________________________ Chief, Drilling and Completions William Ellsworth ____________________________________ __________ Operations Manager Husky Oil China Fang Weihau ____________________________________ __________ __________ __________ __________ __________

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1. Summary Well Details


Basin: Petroleum Contract Area: Husky Participating Interest: Location Projection: UTM zone: Central Meridian: Latitude: Longitude: UTNX: UTNY: Seismic Location: Water Depth: XY Target tolerance: Prospect Trap style: Primary Target Formation: Secondary Targets: Chance of Success: Primary Target Depth: TD: Faulted Anticline Zhujiang Formation Zhuhai / (?) Wenchang / Enping Formations Miocene Turbidite Fans 13% 3200 m SS 4071mSS (4094 m RT) WGS84 50N 117E 19.9120574N 115.415119E 334105.0E 2202531.20N Intersection 04EC-LW31002 SP2019.42 & 93EC-1569 SP1027.29 1481 m 50 m Pearl River Mouth Basin 29/26 100%

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2. Permit Details
The Liwan 3-1-1 wildcat is located within Deepwater Contract Area 29/26 in the Pearl River Mouth Basin, Figure 1. The Petroleum Contract was signed in August 2004, with a Commencement Date of 1 October, 2004. The drilling of the LW3-1-1 well will fulfill the work commitment obligations, in full, for the first exploration term of the contract, which expires on 30 September, 2007.

180 km

Figure 1: Location Map

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3. Regional Geology
The Pearl River Mouth Basin is one of four regional petroliferous basins located along the northern continental shelf of the South China Sea. The Pearl River Mouth Basin can be further sub-divided into three separate sub-basins. Two of these are located on the present day continental shelf and the third is in deep water, sea-ward of the present day shelf margin. Block 29/26 is located in this deep water area known as the Zhu II Sub-Basin. The Tertiary evolution of the Zhu II Sub-Basin can be divided into an Eocene to Lower Miocene extensional phase marked by the development of fault-bounded rifted sub-basins, followed by a Lower Miocene to recent passive margin phase, typified by relatively unstructured deepwater sedimentation. Extension and rifting was probably caused by a combination of both southward slab pull, related to the subduction of the proto South China Sea oceanic crust and extension related to the extrusion and clockwise rotation of Indochina along the north-west striking Red River Fault. The stratigraphy of the Pearl River Mouth Basin is presented in Figure 2. No wells have been drilled into the deep water portion of the Zhu II sub-basin to date. The EoOligocene stratigraphy of the Zhu II sub-basin is anticipated to be similar to the synrift stratigraphy encountered on the shelf at the Panyu and Liuhua gas fields just north and west from Block 29/26, (Figure 1). The seismic shows that the basin rifting is comprised of two significant syn-rift phases. These correspond to the Shenhu / Wenchang (Eocene) and Enping / Zhuhai Formations (Oligocene to Lower Miocene). Initial rift development during Early to Middle Eocene time resulted in the deposition of the Shenhu / Wenchang Formations directly overlying the Base Tertiary unconformity (Tg). Sediments are characterized by coarse-grained, often mud-rich, matrix-supported conglomerate / diamictite indicative of high energy alluvial fan deposition adjacent to highly active fault scarps. The second syn-rift phase is marked by the deposition of the Enping Formation consisting of predominantly fluvial to lacustrine sediments. The top of the Enping Formation is
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marked by an angular unconformity, (T70), which is overlain by the lower part of the Zhuhai formation. The Zhuhai Formation (Upper Oligocene to lowermost Miocene), is an overall transgressive event typified by a generally fining upward sequence and represents the initial transition from syn-rift to post-rift sedimentation. A similar sedimentary sequence is expected for the Zhuhai Formation at LW 3-1-1. The section grades from high energy, unconfined channel complexes at its base, to moderate and low energy fluvial facies near the top. The Lower Zhuhai fluvial channels consist of amalgamated coarse to fine sandstone and sparse shale. Fine grained, lacustrine to floodplain facies may cap off the interval locally. The Zhuhai Formation terminates at the 23.8 mybp, T60, sequence boundary, interpreted as the regional breakup unconformity. Within wells drilled on the present day shelf, the lower portion of the Zhujiang Formation consists of marginal marine shoreface sandstones. This section is capped by a major (?) marine flooding surface, T50, estimated at 21 mybp. The T50 sequence boundary is overlain by an overall progradational highstand sequence consisting of predominantly tidal-dominated deltaic and shoreface deposits. This alternation of low and highstand sedimentation is repeated several times throughout Lower and Middle Miocene, terminating at the top of the Hanjiang Formation. The Yuehai Formation represents the change to deposition on an open marine shelf, which continues to the present day. In contrast to the style of sedimentation occurring on the shelf, deep marine conditions were established in Block 29/26, from Lower Miocene, T50 time, onwards.

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The primary target for LW 3-1-1 is the deltaic to marginal marine shoreface sandstones within the transitional phase between syn-rift and post-rift sedimentation. These sandstones span the contact between the Zhuhai and Zhujiang formations at the breakup unconformity. LW 3-1-1 has potential secondary targets at two stratigraphic levels. The first is interpreted to be fluvial sandstones within the syn-rift sediments of the Zhuhai Formation, near TD. These are considered the deepest hydrocarbon target for LW 31-1. Other secondary targets are interpreted as turbidite sandstones occurring within the Miocene.

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Figure 2: Stratigraphy of the Pearl River Mouth Basin

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4. Prospect Details
4.1 Location The proposed well, Liwan 3-1-1, lies within Contract Block 29/26, in the Zhu II Sub Basin of the Pearl River Mouth Basin. The well is located in 1481 m water depth, 320km from the Chinese coast, 350km southeast of Hong Kong and 65km southeast of the Panyu 30-1 and Liuhua 7-1 wet gas discoveries. Co-ordinates for the location are outlined below and are shown in Fig. 3: Map Projection Projection system: UTM zone: Central Meridian: Prime Meridian: False Easting: False Northing: Meridian Scaling Factor: Origin Latitude: Origin Longitude: WGS84 50 North 117E Greenwich 500,000M 0M 0.9996 0.0N 117.0E

Liwan 3-1-1 Well Location Latitude: Longitude: UTNX: UTNY: 19.9120574N 115.415119E 334105.0 M 2202531.2 M

Intersection of 2-D seismic lines: 04EC-LW31002 93EC-1569 (SPN 2019) (SPN 1017)

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11524'45"

11525'00"

93 EC

Map Projection
WGS84 UTM Zone 50 North Central Meridian: 117 E 2001 Prime Meridian: Greenwich False Easting: 500,000 M False Northing: 0 M Meridian Scaling Factor: 0.9996 Origin Latitude: 0.0 N Origin Longitude: 117.0 E 2011
2203000

2031
1954'30"

04EC-LW 31002_W G

Figure 3: Survey Location of Liwan 3-1-1

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1955'00" 1954'45"

15 69 _A
10

10

03

Well Location #1
10 23
2202500

Well Location #1 Lat: 19.9120574 N Long: 115.415119 E UTMX: 334105.00 mE UTMY: 2202531.20 mN
10 33

RC
13

IS
2021

10

43

2202000

2041

10

53

334000

334500

CHINA

Well Location #1 Block 29/26 South Sea, China


SCALE: See Map Scale

WELL LOCATION #1 BLOCK 29/26 SOUTH SEA, CHINA


DRAWN BY: TAT KWAN DATE: 2005.04.06 FILE: bk_42_05+bk_29_26.MFD, .ZGF GEOLOGIST/GEOPHYSICIST: Michael Tinkler

MAP AREA S. China Sea

METERS 0

1:5000 100

200 METERS

PROJECTION: UTM WGS84 Zone 50 North


DATA SOURCE: OW Project (S_CHINA_SEA) SW2D Project (bk_05_26) IMPORTRANT NOTICE: All coordinates are approximate.

MAP MAY NOT BE TO SCALE

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4.2

Trap

The Liwan 3-1 prospect is a large faulted anticline of up to 61+ square km in closure (Figs. 4-7). The LW3-1 structure developed during the Middle Miocene and later as a result of the reactivation of a series of east-west striking, down-to-the-south extensional, rift faults, initially developed in Eo-Oligocene times. One of these faults forms the southern boundary of the prospect. The northern flank of the structure comprises an east-west striking, antithetic, down-to-the-north fault, which arrests the regional south directed dip within the basin. The LW3-1 prospect forms at the overlapping tip points of these two faults (Fig. 4). Depth mapping of the T50 seismic marker indicates the closing contour to be at -3360 m SS, giving a closure height of around 180 m. The LW3-1 prospect exhibits both strong amplitude and AVO responses, which largely conform to structure. The AVO response shows a strong increase in amplitude with off-set for the trough immediately beneath the T50 seismic marker and is believed to represent a direct hydrocarbon indicator, indicative of Type II / III gas sand. The proposed location for the LW3-1-1 well is towards the southern end of the mapped closure at T50 level (Fig. 4). This location provides a relatively crestal location on the structure, at the intersection of two 2-D seismic lines. The chosen location is felt to represent an optimal position to test the mapped amplitude and AVO anomalies associated with the prospect and maximize the likelihood of achieving a good well to seismic tie.

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4.3

Reservoir

The primary reservoir target for the LW3-1-1 well is interpreted to be deltaic and shoreface sandstones within the lower part of the Zhujiang Formation and possibly the upper part of the Zhuhai Formation. The nearest offset well to the prospect is the Panyu 27-1-1 well, which was drilled on the shelf approximately 60 km to the northeast of the LW 3-1 prospect. The lower part of the Zhujiang in this well (2758-2848m TVD) is comprised of four coarsening upwards cycles consisting of fine to medium grained quartoze sandstone. Core analysis from this interval indicate that tidally dominated deltaic and shoreface facies contain the best reservoir quality sandstone. It is these sandstones that are expected to represent the primary reservoir target in the LW 3-1-1 well. Core analysis results from Panyu 27-1-1 are summarized in Table 1. The upper part of the Zhuhai Formation (2848-3310m TVD) contains similar reservoir-quality sandstones to those in the Zhujiang Formation, however, the reservoir facies are interpreted as estuarine or bay-fill deposits and the sandstones are slightly more argillaceous than the reservoir-quality sandstone in the Zhujiang, resulting in slightly lower permeabilities.

Formation Zhujiang Zhuhai

Cored Interval 2765-2783 3220-3245

Ave Perm Kl (md) 187 115

Ave Porosity (%) 14.8 15.1

Table 1: Core Analysis Summary of Panyu 27-1-1.

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4.4

Seal

A good regional top-seal for the primary target within the Zhujiang Formation is expected to be formed by overlying deep marine shale. Strong support for the seal is provided by the, Amplitude Versus Offset, (AVO), anomaly, identified on various vintages of 2-D seismic data. Fault seal is considered to represent a minor risk. The faults bounding the LW3-1-1 prospect do extend upwards into the younger Middle and Upper Miocene section. However, given the fact that the primary target is expected to be overlain by a thick succession of predominantly deep marine shale, these faults are considered to have a high probability of sealing. Once again, the AVO response at the prospect level, lends support to this argument. Deep marine shale is also considered to provide good top-seals for any potential turbidite fans that may be encountered in the Miocene.

4.5

Source/Migration

Since no wells have been drilled in the deep water portion of the Zhu II Sub-Basin to date, the presence of an active petroleum system has yet to be proven. The discovery of wet gas in the Panyu 30-1-1 and Liuhua 9-1-1 wells on the northern flank of the Zhu II sub-basin indirectly suggests a petroleum system may exist. Source rocks are expected to occur within the syn-rift, lacustrine shale of the Oligocene Enping Formation and/or the Eocene Wenchang Formation. These formations have provided source rocks for the sub-basins located in shallow water along the present day shelf of the South China Sea.

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The geological risk associated with secondary migration and charging of the LW3-1 prospect is considered to be low. Firstly, the seismic data indicates a significant thickness of syn-rift sediments directly underlying the LW3-1 prospect. This section may contain significant source rock intervals for charging the prospect. Secondly, a major syn-rift depo-centre has been mapped in the adjacent deepwater Block 42/05, approximately 40 to 60 km to the west of the LW3-1 prospect. Although the migration pathway is poorly understood, this depo-centre could act as the source kitchen for the LW3-1 prospect. It is worth noting that the wet gas discoveries in the Panyu 30-1-1 and Liuhua 9-1-1 wells are believed to be sourced from the Zhu II subbasin to the south, a distance of approximately 60-80 km.

4.6

Geological Prognosis

The geological prognosis for the well is presented in both Table 2 and Figure 8. The anticipated total depth of the LW 3-1-1 well is set at 4071 m SS, 274 metres below the top of the deeper secondary target. This should provide sufficient overhole to fully evaluate the anticipated reservoir section with down-hole logs. The expected total depth will be revised should the well encounter hydrocarbon indications near TD. The total depth will be adjusted in efforts to allow for full logging and evaluation of all hydrocarbon bearing zones.

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Formation/Surface

Prognosed Depth (mSS) 1481 2563 2746 3000 3200 3225 3378 3797 4071

Prognosed Depth (mRT) 1504 2586 2769 3023 3223 3248 3401 3820 4094

Estimated Error (+/- m) 3 100 100 100 100 100 100 100

Sea Floor Top Fan (CNOOC) Zhujiang Fm Top Fan (Husky) Intra Zhujiang (Near T50) Primary Target (Trough beneath Near T50) Zhuhai Fm Secondary Target TD

Table 2: Geological Prognosis/ Formation Tops.

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4.7

Expected Sedimentary Section Wanshan, Yuehai and Hanjiang formations (1481-2746 m SS)

Predominantly mudstone and siltstone with some intercalations of sandstone. Mudstone is light to medium grey, soft, and silty. Locally, some fine to coarse grained quartoze sandstone, calcareous with black and green lithoclasts, occasionally chloritic, soft and hydrating. Mudstone becomes more consolidated with depth. Siltstones grade to sandstone and mudstone.

Zhujiang Formation (2746-3378 m SS) Predominantly sandstone with mudstone and siltstone. Sandstones are generally quartoze to sublithic, light to medium grey with variable amounts of chlorite, feldspars and black lithoclasts. Fine to course grained sandstone, friable, moderately to poorly sorted with subangular to subrounded grains. The main target for the LW 3-1-1 well is the sandstone through this interval. The sandstone is occasionally white and very well cemented with calcite grading to sandy limestone. The possibility of a tight limestone unit exists directly overlying the primary target. Mudstone and siltstone are light to medium grey, occasionally sandy and grade locally to fine sandstones. Mudstone and siltstone are micromicaceous, kaolinitic, occasionally micropyritic and chloritic. Mudstone and siltstone are very calcareous with black lithoclasts, predominantly soft and hydrating.

Zhuhai Formation (3378-4071mSS) Interbedded sandstone, siltstone and minor mudstone in poorly defined coarsening upwards cycles. Sandstone is quartoze, often white to light grey, commonly very calcareous and variably kaolinitic, occasionally feldspathic, micaceous, pyritic and locally, moderately chloritic. Fine sandstone is commonly argillaceous and grade into siltstone. Sorting is moderately good with angular to subangular grains. Sandstone is friable to slightly compacted.
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Mudstone and siltstone are dominantly medium grey-brown and occasionally light grey-brown to off-white depending on the carbonaceous and kaolinite content. Mudstone and siltstone are generally slightly calcareous, micaceous, firm, fissile and slightly to moderately hydrating.

4.8

Potential Drilling Hazards

Geological overpressures and shallow water flows within the Miocene and younger sediments are considered to represent the most significant potential drilling hazards for the LW 3-1-1 well. The site survey performed over the location indicates no issues with respect to shallow gas over the LW 3-1 prospect. Pore pressure predictions based on an analysis of the 2-D seismic velocities also suggest a lack of any major overpressures down to the primary target zone. In general, shallow water flows, (SWF), are difficult to predict using seismic data. However, two potential zones that could represent SWFs have been identified using the seismic from the site survey. These are at 30 m and 140 m below the mudline. The 30 m anomaly is considered to be too shallow to hold appreciable pressure and is therefore considered unlikely to represent significant risk. The risk associated with the deeper anomaly is also considered to be low. Firstly, at 140 m, it is shallower than typical SWFs which usually occur at 250 600 m below mudline. Secondly, the seismic shows evidence of micro-fracturing, which would have leaked off the excess pressure, had it been present. As a precautionary measure, the possible presence of SWFs will be considered in the well planning. Gas hydrates are another drilling hazard which can occur at these water depths. The site survey does not indicate the presence of gas hydrates at the LW 3-1-1 location.

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LW 3-1-1

P50 Area = 61 sq km; 3360 m subsea contour

Figure 4: Depth Structure Map Near T50 Horizon.


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LW 3-1-1 Location

T40

Near T50

? T70

Figure 5: Seismic Line 04EC-LW31002. Location of Liwan 3-1-1.


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NNW

LW 3-1-1 Location

SSE

T40

Near T50

? T70

Tg

B
Figure 6: Seismic Line 93EC-1569. Location of Liwan 3-1-1.

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LW 3-1-1 Location

T40 Near T50 Lower Miocene

? T70 Eocene - Oligocene Tg

Basin Bounding Fault

A
Figure 7: Seismic Line 04EC-LW31002 Basin Configuration and Sedimentary Sequences.

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Figure 8: Prognosis and Summary Evaluation for Liwan 3-1-1.


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5. Preliminary Drilling Plan


Outlined below in Figure 9 is a preliminary timing estimate for the drilling of Liwan 31-1. Figure 10 is a preliminary schematic diagram showing the casing design.

Figure 9: Depth vs Time Curve.

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36 Casing Jetted to 1556 m SS (1579 m RT)

26 Open Hole

Surface Hole

20 Casing set at 2057 m SS (2080 m RT) First Intermediate Hole 17.5 Open Hole 13 3/8 Casing set at 2362 m SS (2385 m RT) ITD1 Second Intermediate Hole 12.25 Open Hole

9 5/8 Casing set at 3137 m SS (3160 m RT)

ITD2

8.5 Open Hole

Main Hole

TD = 4071 m SS, (4094 m RT)

Figure 10: Preliminary Well Design.

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Figure 11: Operational Flowchart Dry Hole Scenario.


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Figure 12: Operational Flowchart HC Below 3160 m Only.


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Figure 13: Operational Flowchart HC in Miocene Turbidites Only.


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Figure 14: Operational Flowchart HC below 3160 m and in Miocene Turbidites.


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6. Well Evaluation
6.1 Sampling Requirements

Since LW 3-1-1 will be the first deep water well to be drilled in the basin, CNOOC has requested that Husky provide 2 m sample intervals throughout the well. Husky will make every effort to achieve this sample rate, by employing 4 sample catchers. It should be noted, however, that if living space on the ship becomes an issue, it may be necessary to release up to 2 sample catchers in order to accommodate more essential personnel. This could result in a lower density of samples, depending on the drilling rate. Sampling requirements are summarized in Table 3.
Recipient
CNOCC CNOCC Husky Wellsite Geo

Sets
1 1 1 1

Rate
Every 2 m Every 2 m Every 2 m Every 2 m

Mass
500g 500g 50g 20g

Sample Preparation
Wet, Unwashed Sieved, washed & dried Sieved, washed & dried Sieved, washed & dried

Packaging
Plastic bags & Hubco bags Plastic bags & Hubco bags Paper Envelopes Samplex Trays

Table 3: Sampling Programme.

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Samples Caught and Processed at the Rig Two (500g) bags (one unwashed and one washed, clean and dry) Samples must be air dried at a temperature not exceeding 40C. They should not be heated under a light. If complete drying is not possible, ship the sample damp. 2 m intervals from base of Surface Casing (SC), 2057 m SS to TD (4071 m SS). At discretion of Wellsite Geologist in case of high ROP. Samples to be shipped to CNOOC office.

One (50g) packet (washed, clean & dry) 2 m intervals from base of surface casing, (2057 m SS) to TD, (4071 m SS). At end of well, the packets are to be shipped to Husky Oil China Office Shekou

Samplex Trays (20g) (washed, clean & dry) 2 m intervals from base of surface casing, (2057 m), to TD, (4071 m). At end of well, the trays to be shipped to Husky Oil China Office Shekou

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6.2

Mud Logging

A surface logging service will be provided and shall include the following key items: Geological Survey: Sampling, Analysis, Data Handling Geological Sample Logging Gas Total Hydrocarbon Analysis Gas Chromatography Mud and Filtrate resistivity each day below 1000m and in oil/gas zones, formation water resistivity from test shall also be determined. Abnormal Pressure monitor Shale Density H2S Detection Multi-User Data Acquisition and Processing Distribution of Information Engineering Application Station Data Handling

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6.3

Coring

The decision on coring will be determined by the technical project team in Calgary subsequent to wireline log evaluation. Up to four 18m cores are programmed for the well. Cores will only be acquired in the case where hydrocarbons are present in reservoir-quality sandstone. The plan for acquiring core is to drill to TD and core via one or more sidetrack well bores, following evaluation of drill and log data. This methodology is now standard practice in wildcat drilling and has the following advantages: It provides a cost saving in a dryhole case, as there is no need for slow, controlled drilling in order to identify core points. Likewise, there is no need for suspension of drilling while cuttings are circulated to surface in order to confirm shows prior to pulling out of hole to core. A sidetrack has the advantage of being able to accurately select the optimum core point. This will add significant value for any future development feasibility study. Since LW 3-1-1 is the first exploration well in the sub basin, it would be very difficult to pick optimal core points, prior to proper evaluation of the section with wireline logs. Mud samples, (500ml), should be collected from the mud return flow line after coring. Samples should be marked with date, time and current depth. Samples should be shipped from the rig via supply boat to CNOOC to be handled by CNOOC as required.

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6.4

LWD

LWD will be run in this well from surface casing shoe to TD using a GR/ARC tool. This will aid in identifying hydrocarbons and choosing TD. Schematics of the LWD programme are shown in Figures 15 and 16. Details of the LWD programme are included as Appendix 1.

Figure 15: LWD Programme for the Pilot Hole.

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Figure 16: Logging and Coring Programme for possible Sidetrack(s).

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6.5

Wireline Logging Programme

The plan is to drill surface hole, run surface casing, drill an intermediate hole (17 ), drill a second intermediate hole (12 ), drill main pilot hole (8 ) to TD, and if sands/fluid content warrant, drill sidetrack hole (8 ) to core sands of interest. A liner will be run in the sidetrack hole although no testing will be undertaken at this time. There is no open hole logging planned in the surface hole or first intermediate hole. Two open hole logging runs are planned for the second Intermediate hole. The main pilot hole and sidetrack holes will be tentatively evaluated as per programme. Note that tool combinations/runs for each hole may be changed during drilling depending on reservoirs encountered. An explanation of some of the logging abbreviations used in this section of the booklet is included in Table 4. Below is a summary of the wireline logging programme for Liwan 3-1-1 (Table 5). A detailed programme is presented as Appendix 2.

Abbreviation SC ITD1 ITD2 PTD STD KOP LWD

Explanation Surface Casing Intermediate TD 1 Intermediate TD 2 Pilot Hole TD Sidetrack TD Kick Off Point Logging While Drilling

Prognosed Depth 2057 m SS, (2080 m RT) 2362 m SS, (2385 m RT) 3137 m SS, (3160 m RT) 4071 m SS, (4094 m RT) Contingent Contingent

Table 4: Logging Abbreviations and their Explanations.

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Run# Descent# LWD LWD R1-Des1 R1-Des2 LWD R2-Des1 R2-Des2/3 R2-Des4 LWD R3-Des1 R3-Des2 R3-Des3

Hole Size Mud Type (in) 17 12 1/4 12 1/4 12 1/4 8 8 8 8 8 8 8 8 WBM WBM WBM WBM WBM WBM WBM WBM WBM WBM WBM WBM

Depth (Interval) 36 csg. to ITD1 ITD1 to ITD2 ITD1 to ITD2 36 csg. to ITD2 ITD2 to PTD ITD2 to PTD Depths ITD2 to PTD KOP to STD KOP to STD KOP to STD Sands

Logging Suite GR/ARC1 GR/ARC1 GR/EMS/PEX/AIT3 /DSI GR/VSP GR/ARC1 NGT/EMS/DSI/PEX/AIT3 GR/MDT2 GR/VSI GR/ARC1 NGT/DSI/PEX/AIT3 FMI CMR

SC Surface Casing ITD1 Intermediate Casing (13 3/8) ITD2 Intermediate Casing (9 5/8) PTD Pilot Hole TD
1

STD Sidetrack Hole TD KOP Kick Off Point

LWD1/2 to identify potential hydrocarbon zones, and may be run to aid in picking TD. Contingent on sands/fluids encountered. HRLA may be substituted depending on drilling mud salinity

2 3

Table 5: Logging Programme


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6.5.1 Open Hole Wireline Logging Programme.

Run 1 Open Hole Interval is ITD1 to ITD2 GR/DSI/EMS/PEX/AIT CASED HOLE GR-CNL VSP (36 csg. Shoe to ITD1) (36 csg. Shoe to ITD2)

Run 2 Open Hole Interval is ITD2 to PTD NGT/DSI/EMS/PEX/AIT GR/MDT (Contingent on sands/fluids encountered) VSP

Run 3 Open Hole Interval is KOP to STD (Sidetrack to cut Core) NGT/EMS/PEX/AIT FMI CMR Objectives: The PEX/AIT will provide the base data to determine porosity, lithology, fluid type, saturation, permeability, net pay, and other petrophysical parameters. The DSI will be run to evaluate compressional and shear travel times to: December, 2005

aid in establishing porosity, and porosity type aid in AVO analysis provide a seismic tie model wellbore stability
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The CMR will provide data on pore size distribution, porosity, independent of formation lithology, differentiate free and bound fluids, provide a good estimation of permeability, and an attempt will be made to determine hydrocarbon viscosity. The FMI will be run to determine formation dips and locate faults. In the zones of interest the FMI will be run in image mode to provide information on formation orientation and structure, identify faults, and provide an oriented electrical image to refine the geological and petrophysical models. The MDT will be run in different modes to: obtain a pressure profile identifying fluid contacts and reservoir fluid density variations, obtain fluid samples to obtain hydrocarbon and water properties. The VSI will acquire downhole seismic data to refine the seismic models and interpretations. If casing is run, this service can be run in cased hole (VSP mode). This acquisition is to act as a standard to properly adjust the phase of the seismic and to have an unambiguous time-to-depth tie. Base logs to be run in high-resolution logging mode in all zones of interest, allowing the best possible formation evaluation in thin, laminated zones.

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6.5.2 Logging Run in Sidetrack Hole for Core Intermediate Casing: Core Sidetrack KOP: Bit size: Total Depth: Mud system: 9 5/8 @ 3137 m SS ITD2 TBD 8 TBD (Estimated Sidetrack TD - STD) WBM

Run 3-Descent 1. GR/PEX w/AIT ( or HRLA ): Gamma Ray, Platform Express, Litho Density, Compensated Neutron, and Array Induction. AIT-GR: STD to 25m above KOP Vertical Scale: Horizontal Scales: Resistivities: Resistivities: Resistivities: GR: TLD-HGNS-GR-CAL: STD to 25m above KOP Vertical Scale: Horizontal Scales: GR: Calipers: RHOZ/RHO8:
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1:200 and 1:500 0.2-2000 ohm-m Log 0-50 ohm-m Lin 1000-0 m-mhos Lin 0-150 API (Lower scale) (Upper Scale) (Upper Scale) (Both scales)

1:200 and 1:500 0-150 API 6- 16 2 3 g/cc (Both scales) (Both scales) (Upper scale)
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PEFZ/PEF8: HDRA:

0-10 Track 2

(Both scales) (Lower scale)

-0.05 to 0.45 g/cc Track 2 (Both scales)

DPHZ-NPOR/HNPO: 0.45 to 0.15

LS Porosity Scales -Rho fluid 1 g/cc Rho matrix 2.71 g/cc

Note: 1. Make a complete Hi-Res pass with gamma ray, resistivity, density, and neutron data over all potential pay sands. Hi-Res is on a scale of 1:120 and AIT on one foot spacing. (Include two and four foot AIT spacings in digital file). 2. Include in digital data, porosity on Sandstone (2.65 g/cc). and Limestone Matrix (2.71 g/cc). 3. Hole size is 8.5. Prepare tools accordingly. 4. If well is deviated, TVD required.

Run 3-Descent #2:- FMI: Formation Micro Imager

FMI-GR: STD to 25m above KOP FMI (image mode) over reservoir sections (final intervals determined by Calgary office at time of logging). Standard presentation and scales. Images for Porosity Type and Structure.
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Run 3-Descent #3:- CMR: Combinable Magnetic Resonance CMR-GR Intervals to be decided Vertical Scale: Horizontal Scales: GR: Tension: KTIM KSDR BFV: CMFF TCMR CMRP: T2LM T2CUTOFF T2 Distribution Operation Notes: 1. Tension curve to be presented on all surveys, head tension device to be run on all runs. 2. At least one 50 m repeat over a zone of varied response is required. If more than one repeat is required, present all on final log. Tool should be repeated until Companies' representative is satisfied with the data. 3. "Before" and "after" survey calibrations should be recorded, labeled and included with master shop calibrations. Operations should not proceed if sonde exceeds acceptable tolerances, unless approved by Companies' representative.
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1:200 0-150 API Standard scales 0.1 1000 md 0.1 1000 md 0.3 0.0 V/V 0.3 - 0.0 V/V 0.3 - 0.0 V/V 0.3 0.0 v/v 0.1 1000 msec 0.1 1000 msec 3 3000 msec (Lower scale) (Lower scale) (Lower scale) (Lower scale) (Lower scale) (Lower scale) (Lower scale) (Lower scale) (Lower scale) (Lower scale) (Lower scale)

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4. Overlap tie-ins by at least 30m. 5. Data transmission will be via satellite/internet. 6. If well is deviated, TVD required.

7. Ministry of Petroleum Industry Wireline Data Requirements


The following will be supplied as per article 23 of the Regulations of the Peoples Republic of China on the Exploitation of Offshore Petroleum Resources: a) One (1) copy of any field print. b) One (1) copy of any final print, to include processed log data. c) After each logging run, LAS data representing all optical curves, on CD (1 copy). d) One (1) copy of a 4 mm DLIS data tape (high density data stream 4/8 GB) to be provided at end of well and to include all log data.

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8. Drilling Section
8.1 General Information and Well Data South China Sea Block 29/26 Liwan 3-1-1 Exploratory Husky Oil China Ltd 1st quarter 2006 Discoverer 534 Drillship 23 m 1481m Casing Size Depth TVDRKB 1579m 2080m 2385m 3160m 4094m

Contract Area: Well Designation: Well Type: Operator: Planned Spud Date: Rig Name: Rig Type and Class: Rig Floor Elevation: Water Depth: Casing Shoe Depths: 36 1579m 20 2080m 13 2385m 9 3160m TD 4094m

Depth MDRKB

Surface Location Coordinates: Latitude: Longitude: Tolerance: 19.9120574 N 115.415119 E 50m Radius Northing: Easting: 2,202,531.2m 334,105m

WGS: 84 UTM: 50 NORTH Primary Objective: Secondary Objectives: AFE Days: AFE Number: AFE Cost: Zhujiang Formation Zhuhai / Wenchang / Enping Formations and Miocene Turbidite Fans 66 days Mob, Drill, Evaluate, P&A Well, Demob. 85 days Mob, Drill, Evaluate, Sidetrack, core, evaluate, Suspend, Demob US-12283 22,495,000 Drilled, Evaluated, abandoned 27,007,000 Drilled, evaluated, sidetracked, cored, evaluated and temporary abandoned with a 7 Liner in place.
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8.2

References Dril-Quip Service Manual #3640 Husky Environmental Management Plan Husky Oil Spill Response Plan Husky Liwan 3-1-1 Geological Well Program Geological Information 8.3.1 Objectives

8.3

The Liwan 3-1-1 well will be drilled vertically as an exploration well to evaluate the potential for a commercial discovery within the Zhujiang Formation. A sidetrack well bore will be drilled to allow a quality core to be acquired over the crucial reservoir section if required. 8.3.2 Strataigraphy Depths Geologic Tops Sea floor Wanshan, Yuehai, and Hanjiang Fm Zhujiang Fm Zhuhai Fm TD Table 6. Stratigraphic Tops Depth (m) TVDSS 1481 1481 - 2746 2746 - 3458 3458 - 4071 4071 Depth (m) RKB 1504 1504 - 2769 2769 3481 3481 4094 4094

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8.4

Drilling Operations Summary 8.4.1 Operations Summary

The Discoverer 534 will be used to drill the Liwan 3-1-1. Husky will mob the rig from India to China. There will be a 10-14 day stopover in Singapore to allow Transocean to do some general rig maintenance, repair thrusters and restock the rig. Once the rig is on location final system checks and location verification will be conducted prior to operations commencing. The surface location is: Latitude: 19.9120574N Northing: 2,202,531.2m Longitude: 115.415119E Easting: 334,105m The tolerance is 50m The water depth on this location is expected to be 1481m. The 36 casing will be jetted to 1579m. A 26 hole will be drilled to 2085m and 20 casing run and cemented at 2080m. The BOPS and riser will be run. A 17 hole will be drilled to 2390m and 13 casing will be run and cemented at 2385m. A 12 will be drilled to 3165m. Logs will be run and the 9 casing will be run and cemented at 3160m. An 8 hole will be drilled to a planned TD of 4094m. Logs will be run and evaluated. In the case of commercial hydrocarbons the well will be sidetracked and cored. After coring is completed a 7 liner may be run and cemented and the well will be suspended. If no commercial hydrocarbons are found then the well will be plugged and abandoned. All operational instructions, equipment movement and/or changes of plans shall only come from the Drilling Superintendent. 8.5 Potential Hazards 8.5.1 Offset Well References The closest offset well was drilled in 200m of water in the 1980s and is 60Km away. 8.5.2 Shallow Hazard Survey The only potential shallow hazards the site survey indicated were two (2) buried slumps. One was at 30m below the mudline and the other slump was 140m below the mudline. Slumps are potential salt water flow anomalies but it is unlikely that either of these represent significant risk. Both of these anomalies are too shallow to hold appreciable pressure and there is evidence of micro-fracturing on the site survey seismic. These slumps could contain some pea sized rocks that could cause
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some tight hole and or sloughing. Hi-vis sweeps will be used to keep the hole clean and a pad mud will be spotted in the open hole prior to pulling out of the hole to run casing. Due to the fact that it is difficult to predict salt water flows and there is no offset data preparations will be made in the event that a shallow flow occurs a pump and dump method will be used. This method uses a weighted spud mud that is pumped down the drill string with returns to the seafloor. The site survey also indicated a very soft sea bed floor. This will be the third well to be jetted in China and data from the site survey indicated that there should not be any problems with jetting. A mud mat will be used to help ensure the wellhead does not sink into the soft seabed floor. 8.5.3 Pore Pressure/Fracture Gradients Both the site survey and 2D seismic indicated a normal pore pressure. The pore pressure and fracture gradients were developed from the 2D seismic data and based on Gulf of Mexico models. 8.5.4 Potential Lost Circulation Lost Circulation is always a possibility. Contingent plans are in place to combat seepage to complete losses. 8.5.5 Other Hazards Hydrogen Sulfide (H2S) gas has not been reported in the area and is not expected to be encountered. However, precautions will be taken at all times to ensure that the Rig and mud loggers supplied H2S detection equipment is in good working order and monitored for the presence of H2S. Additionally, the mudlogging units H2S continuous gas monitor in the gas sample line will be monitored. If H2S is detected, drilling will be suspended, conditions assessed and appropriate safety measures initiated.

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8.6 String

Casing Program OD/Weight/Grade Connection Shoe Depth (m) D-90 1579 m S-60 2080 m BTC 2385 m BTC 3160 m Drift Diameter (inches) 33.0 18.376 12.259 8.525 Min. Safety Factors Burst Collapse 4.57 2.88 2.26 1.35 3.46 9.27 16.24 11.03 1.68 1.16

Structural 36, 553 lb/ft, X-56 Surface 20, 166 lb/ft, X-56 Surface 13, 68 lb/ft, N80 Intermedia 9, 47 lb/ft, N-80 te/ Production Liner 7, 26 lb/ft, N-80 Table 7. Casing Design

BTC

4094 m

6.151

8.6.1 Casing Properties Size (OD) Weig ht (lb/ft) Grad e Conn. Colla pse Ratin g (psi) 2690 2510 2270 4760 5410 Inter nal Yield (psi) 4080 3980 4930 6870 7240 Joint Strengt h (1000 lbs) 1450 1850 1161 667 Body I.D. Yield (in) (100 0 lbs) 9104 2741 1556 1086 604 33 18.37 12.41 8.681 6.276 Drift I.D. (in) 32 18.25 12.259 8.525 6.151 Cplg O.D. (in) 36.12 21.0 14.375 10.625 7.656

36 553 X-56 D-90 20 166 X-56 S-60 13 68 N-80 BTC 9" 47 N-80 BTC 7 26 N-80 BTC Table 8. Casing Properties

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8.7

Drilling Operations/Procedures 8.7.1 Rig Move

Reliance currently has the Discoverer 534 under contract in India. Once the rig is handed over to Husky it is planned to steam to Singapore, this is planned to take 10 days. A stopover of 10 - 14 days is planned in Singapore as Transocean will do some maintenance and restock the rig with supplies. The rig will steam to China and it is anticipated to take 8 days to travel from Singapore to China. Once the rig is near the location custom officials will meet the rig and the rig and rig crew will clear customs on location. It is planned to have a Husky drilling representative and a Modu-Spec representative on the rig prior to Reliance handing the rig over to Husky. Once on board the rig Modu-Spec will conduct a rig inspection and continue his inspection during the travel time from India to Singapore. The Modu-Spec representative will inspect the BOP Stack, mud pumps and draw-works as a minimum. Currently the BOP has a Drill-Quip Type DX connector on the bottom. This will need to be changed to a Cameron Collet Connector. Transocean is required to have a third party inspect all drill pipe, drill collars, subs, and other downhole tools within 30 days prior to mobilization. The drill pipe shall be inspected to a DS-1 Service Category 4 + UT slip/upset Premium Class or better. All other items shall be inspected to a DS-1 Category 3 5. While the rig is in Singapore a BJ Cement representative and an Oceaneering representative will board the rig to conduct maintenance on their respective units. The Husky Representative shall familiarize himself with the rig and develop a plan of attack using the drilling program as a guide during the steaming time. It is planned to conduct a pre-spud meeting with the rig crews while the rig is in Singapore. A second Husky drilling representative will board the rig at this time.

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Anticipated Goals during rig move: Have Modu-Spec conduct a full inspection of the drilling unit and develop a preferred order of importance on any deficient items found by the inspection. Ensure the tubulars are inspected and any bad tubulars are marked in such a manner that they will not be used. Obtain a joint count of all tubulars including the number and length of pup joints. Verify connections on all tubulars and compare to the drilling program. Develop a rig specific plan of attack using the drilling program as a guide. It is desirable to have 6 liners in the mud pumps through the 26 hole size. Once the BOPs are run it is desirable to have 6 liners in the mud pumps. Determine if it there will be enough man power to change the liners while running the BOP and riser. If not then we will opt to have 6 liners for the entire well. Inspect the suction screens on the mud pumps to ensure they are free of any obstructions and/or debris. Ensure the bulk tanks are clean and ready to receive bulk material. Verify the swivel packing hours. Inspect the dies in the tong head and slips. Inspect all chain tongs and pipe wrenches to ensure they are in good condition. Inspect the saver sub and ensure there is sufficient spares on the rig. Verify the quantity of shaker screens. Ensure the mud pits are clean. Fill one pit at a time with seawater to ensure there is no leakage from one pit to another pit. Stump test the BOPs as per program. Pressure test the TIWs and IBOPs.
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Pressure test the manifold and Top Drive. Ensure the master bushing can be easily removed from the rotary table. Verify there are 13 and 9 casing elevators and slips on the rig. Review the initial load out lists with the rig crews to ensure a timely turn around of the vessels. Pick up and rack back drill pipe and 5 stands of HWDP. If any bentonite was left then mix up a pit of Hi-Vis mud.

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Figure 17. Well Summary

Figure 18. Pore Pressure Graph


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Figure 19. Wellbore Schematic


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8.7.2 36 Section Objective: Jet 36 casing in place. Things to do prior to running 36 Structural Conductor: Strap the 36 casing and wellhead housing joint Strap the inner string BHA, the bit should be planned to stick outside of 36 6 Paint the shanks of the 26 bit white Paint the bottom 5m of the 36 shoe joint yellow with black stripes every meter. Paint the wellhead joint yellow with heavy black stripes every meter and smaller strips every half meter. Consider zero to be at the top of the 36 wellhead housing. Make up and rack back the jetting BHA. Conduct pump rate tests to determine minimum flow rate to turn bit. Prepare spud (hi-vis) mud and pad mud. Make up a 6 Reg Pin x 4 IF box crossover sub and a 10 5 Drill pipe pup joint on top of the 36 running tool. Make up 36 running tool in the 36 well head housing while the housing joint is on the pipe rack. Rig up rig floor for 36 casing operations. Have the MWD crew rig up enough cable to allow them to plug in and download the MWD when it is racked back. Write the well name on the wellhead to help the ROV identify the well at a later date. Review the jetting WOB vs. depth chart at the end of this section with the directional drillers and the Transocean drillers and tour pushers Review with the Drill Quip wellhead man to ensure the proper tools are on board and that there was no damage during shipment. Verify that the shackle pins that are to be used to run the 36 casing fit the welded pad eye eyes. Have the welder cut bigger holes if necessary while the joints are on the pipe rack. The proposed surface location for this well is: Easting = 334,105 m Latitude = 19.9120574 N Northing = 2,202,531.2 m Longitude = 115.415119 E Drill Quip has supplied a Retrievable/Re-Runnable Guideline less Guide Base. Transocean has a funnel down on their BOP stack. An onsite evaluation will determine the need of the Drill Quip guide base. It is preferred to NOT use the Drill Quip guide base if it is determined that the Transocean funnel is adequate. This would allow the ROV to be able to see the landing of the BOPs as well as help ensure there is no trash caught in the Drill Quip funnel. If the Drill Quip guide base is not used then care should be taken when stabbing the 26 bit and 20 casing into the 36 wellhead. 36 Casing: Also see schematic at the end of this section
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The 36 casing will run as below (bottom to top) Beveled plain end (shoe) x D-90 box (1.5 wall, 553 lb/ft) 5 joints of 36 x 1.5 wall (D-90 Connections) 36 well head joint (1.5 wall D-90 pin x 36 wellhead) 36 OD Casing 1.5 wall Weight Grade Pipe Yield Burst Collapse Optimum Make-up Maximum Make-up (ppf) (1,000 lbs) (psi) (psi) Torque* (ft*lbs) Torque* (ft*lbs) 552.69 X-56 9,104 4080 2690 36,000 50,000 Minimum torque = 25,000 ft*lbs.

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Jetting BHA OD ID (inches) (inches) 26 DSJC bit w/ 4 x 26 24 jets A962M3460XP 17 blades, 9 body motor (17 Stab) Power Pulse High Flow MWD Stabilizer 8 Drill Collar Stabilizer 5 8 Drill Collars Spacer Subs Crossover Sub Drill Quip Running Tool Crossover Sub 8.41 26 blades, 8 3 body 8 2 26 blades, 8 3 body 8 2 8 3 7 7 7 3 3 3 Air Weight Buoyed Wt Hydraulics Depth (ft) GPM PV YP Mud Wt (ppg) Pump Psi In 4900 1200 15 20 8.6 3200 Out 5130 1200 15 20 8.6 3270 46,076 lbs 40,100 lbs Item Length (feet) 2 30 26 6 30 6 Cum Length Estimated air Connections (feet) weight (lbs) 2 875 7 Reg Pin 32 58 64 94 100 5,755 3,100 900 4,500 900 22,500 596 550 6,400 7 Reg Box x 6 Reg Box 6 Reg 6 Reg 6 Reg 6 Reg 6 Reg 6 Reg 6 Reg Pin x 4 IF Box 4 IF Pin x 6 Reg Box 6 Reg Pin x 4 IF Box In seawater

150 250 4 (as 254 needed) 4 258 3 261

MWD Psi Loss 640 640 Motor Psi Loss 200 psi 3% flow loss Table 9. Jetting Schematic Ensure a ported flapper type float is installed in the motor.

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Running/Jetting Procedure: Move the mud mat to the moon pool and secure same on the spider beams. Rig up the rig floor. Bull tongs will be used to torque the D-90 connection. Rig up the slings/shackles on the bottom of the bails. The total air weight for the first 6 joints of the 36 casing string will be +/-70 tons so ensure the slings and shackles are rated above this value. Have the crane bring the shoe joint into the v-door area. Attach the shackles to the pad eyes. Pick up the shoe joint, cut the lifting eye (on pin end) off so it will not interfere with the mud mat, and lower it through the rotary. Land the joint in the rotary with the slips just below the pad eyes or land the pad eyes on the rotary table if landing in the slips is too high above the rotary to make up the connection. Bring in the next joint as above. Back out the box protector and pin protector after the 2nd joint has been picked up and secured. Inspect the threads on the box and pin and ensure there is a light coat of API modified thread dope. Stab the pin into the box and set the entire weight of this joint down. Apply a chalk mark across the connection to monitor the amount of turn applied when making up the connection. of a turn is required to fully make up the connection. Apply the backup bull tong and the make-up bull tong and tighten the connection with 36,000 ft*lbs torque (minimum 25,000 ft*lbs torque, maximum 50,000 ft*lbs torque). Install the Anti-rotation key by driving the key into the slot. Install the screw through the key and tighten to retain the key in the slot. Remove (welder to cut off) the pad eyes and lift eye and continue running the rest of the casing. The 36 wellhead joint should be picked up with the 36 running tool installed in it. Just prior to picking up this joint the elevators will have to be changed to drill pipe elevators. Once the wellhead joint is made up and lowered down install the Drill Quip hang off split plates which fit into the external recess groove of the 36 well head housing and lower to rotary. Record the weight of the 36 casing string (should be 125,000 lbs buoyed weight, 145,000 lbs air weight). Back out the running tool and rig up the false rotary, Drill Quip will provide the Drill collar support plate (false rotary). The bowl & slips to be used on the inner string are to be Weatherford supplied bowl and slips. Run the inner string BHA as per schematic below. Once the running tool is made up have the ROV verify the position of the bit compared to the 36 shoe (the bit should stick out 6)
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Ensure all of the bull plugs have been removed from the running tool. Record the 36 casing/inner string weight. This is to be the maximum WOB while jetting. The drill string should be rotated five (5) turns to the left to engage the running tool dogs into the wellhead. Verify the running tool is properly made up into the housing by checking the height of the indicator rod, it should be from the retainer ring. Turn the running tool back to the right of a turn to help ease the back out of the tool after jetting is complete. DO NOT EXCEED MORE THAN TURN TO THE RIGHT. Paint a vertical line on the stem and down onto the tool to aid the ROV in observing the turns to release the tool. Ensure the top-drive brake is locked to prevent rotation due to torque from the motor. PU and remove the hang off plate. Lower the 36 casing and latch into the mud mat. Install the slope indicator and record the bubble position, if this has not been done previously. Hold the weight of the casing and inner string with the block as the locking dogs of the mud mat are being engaged as the mud mat is NOT designed to support the weight of the casing string. Once below the splash zone, record buoyant weight of complete assembly. Continue running the 36 casing to the mudline (1504m). Take into account that there is 1.5m of stretch in the drill pipe once the 36 shoe is at the seafloor; adjust the RKB-ML figure by 1.5m. Have the ROV on bottom and monitor tagging of the mudline. Once the mudline is tagged make adjustments as needed to eliminate any additional connections i.e. LD a single or PU a single as needed to get as close as possible to a full stand. The site survey showed a buried slump or infill at 30m below the mudline. There is a possibility of some gravel sized rocks in this and thus the hi-vis sweeps may have to be increased in both volume and frequency to help carry the gravel sized rocks out. Once jetting operations are ready to start, lower the 36 back to the mudline. Prior to starting to jet have the ROV verify the reading on the slope indicator. If the angle is greater than one-half degree ( ) move the rig accordingly to straighten the 36. The contract between Husky and Transocean allows for a 1 maximum wellhead angle, thus it is recommended that Husky and Transocean senior rig site management agree on the wellhead angle at all times. Have the ROV monitor returns while jetting operations are being conducted and ensure that returns are coming out of the ports in the running tool. The time that the jetting starts shall be noted as the spud date and time.
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Record this time and date on the IADC and Husky morning reports. Record RKB- ML depth (take in account the 1.5m of stretch). Start mud pumps at lowest possible rate to help prevent the jets from plugging (as per test conducted when making up BHA). Mark the drill pipe with the 36 shoe at the mud line zero the weight on bit at the drillers console and mark the drill pipe every meter to monitor amount of pipe jetted. Allow the 36 to free fall until it takes 5,000 lbs weight. Slowly increase the pump rate, attempt to stay under 200 GPM for the first 15m of jetting. Have the ROV monitoring flow and ensure the flow is not coming up on the outside of the 36 Work pipe and pump 50 75 bbl hi-vis sweeps as needed. Pump a hi-vis sweep every connection as a minimum. Make an assessment of hole cleaning efficiency from PWD and ROV observations. Sweep frequency and volumes should be adjusted as required. If at any time steady progress is not being made it is recommended to reciprocate the casing to help free up the pipe movement. Prior to the last connection pick up high enough to observe mud ring on the 36 casing if the ROV can not see the painted marking while jetting. Confirm the mud ring and meter markings on drill pipe are the same. While jetting the last 6m start slowing pumps if possible. Once the 36 wellhead is jetted in place (mud mat is on the seafloor) circulate a 150 bbl hi-vis sweep and shutdown the pumps. Let the 36 soak at the TD WOB weight. Ensure the compensator is at mid-stroke. After allowing the 36 to soak for one (1) hour minimum (depending on ROV visibility may have to soak for a longer period). PU/SO, as required, so that the string weight at the running tool is at the neutral point. Monitor for subsidence of the 36. Recheck bulls-eye. If subsidence is noted, support full casing string weight and wait for an additional hour. Slack off gradually and recheck for subsidence. The Drilling Supervisors should use their best judgment in determining the length of time that the 36 conductor should soak based upon actual jetting conditions. Have the ROV observe the slope indicator while the 36 is soaking. Record bulls-eye inclination angle at TD. Consult with the Husky Drilling Superintendent if the angle exceeds o. Unlock the top drive. Release the Drill Quip running tool by adjusting to leave 10,000 lbs over-pull at the running tool and turning to the right with 5 turns at the tool. Have the ROV monitor the turns. Allow the compensator to stroke closed i.e. pull the running tool up out of the wellhead.
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Have the ROV monitor the wellhead until the 26 bit has cleared the wellhead. Care should be taken so that the 26 bit is not allowed to sit on top of the wellhead if a connection is made just as the bit clears the wellhead, may have to lay a single down. Throughout jetting operations, monitor the following operations with the ROV: Check to ensure that there are no returns around the 36 casing at the seafloor. On each connection, check bulls eye inclination reading to ensure angle is no greater than . Make sure running string remains straight and casing is traveling vert ically as the running string is lowered. Do not put 36 conductor above mud line in compression. Monitor to ensure that the wellhead running tool is not rotating and the vertical scribe line is in the same position. Monitor for returns at the wellhead running tool. Survey with the MWD every connection, inclination only. If MWD misses a survey do not recycle the pumps, continue jetting. Record the following in the IADC and Husky reports; Final bulls-eye inclination 36 shoe depth All MWD survey results RKB to mudline RKB to top of 36 housing sea floor water temperature (from ROV) Ensure the pad mud for the next hole section is ready to go and that there is enough hi-vis mud for the 26 hole section. Strap the 20 casing and 18 Wellhead housing. Fluid Properties Density Funnel Viscosity Plastic Viscosity Yield Point Gels pH API Filtration Low Gravity Solids
December, 2005

Seawater 8.5 NA NA NA NA NA NA NA

Hi-vis Pills 8.6 8.8 >60 ALAP 40 60 14/18 16/20 9 10 NA NA


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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

36" Casing
36" WellHead Mud Mat 36" x 1" wall D-90 Pin D-90 Box 36" x 1" wall D-90 Pin D-90 Box 36" x 1" wall D-90 Pin D-90 Box 36" x 1" wall D-90 Pin D-90 Box 36" x 1" wall D-90 Pin D-90 Box 36" x 1" wall D-90 Pin D-90 Box 36" x 1" wall Plain End w/I.D. Beveled

10' Stick-up Mudline

Figure 20. 36" Casing Schematic


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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Tool Description 26" bit Motor MWD 26" Stabilizer 8" DC 26" Stabilizer 5 - 8" DC Spacer/Crossover subs Running Tool

Length (ft) 2 30 26 6 30 6 150 8 3

Overall Length (ft) 2 32 58 64 94 100 250 258 261

Bottom Connection NA 7-5/8" Reg. Box 6-5/8" Reg. Pin 6-5/8" Reg. Pin 6-5/8" Reg. Pin 6-5/8" Reg. Pin 6-5/8" Reg. Pin 6-5/8" Reg. Pin

Top Connection O.D. (in) I.D. (in) 7-5/8" Reg. Pin 26 NA 6-5/8" Reg. Box 9.625 NA 6-5/8" Reg. Box 8.41 5.9 6-5/8 Reg. Box 8 3 6-5/8 Reg. Box 8 2.875 6-5/8 Reg. Box 8 3 6-5/8 Reg. Box 8 2.875 8 7.625 3 3

Weight (lb/ft) 437.5 192 119 150 150 150 150 145 2133

Cumulative Weight (lb) 875 6635 9729 10629 15129 16029 38529 39689 46088

Bouyant Weight (lb) 761 5768 8457 9239 13151 13933 33492 34500 40063

4-1/2" IF Box 6-5/8 Reg. 4-1/2" IF Pin Box

Jt #

Description Length 36" Casing 0.00 40.00 40.00 40.00 40.00 40.00 40.00 21.00

Overall Bottom Top Length (ft) Connection Connection 0.0 40.0 80.0 120.0 160.0 200.0 240.0 261.0 261.0 Beveled D-90 D-90 D-90 D-90 D-90 D-90 D-90 D-90 D-90 D-90 D-90 D-90 WH

Pipe O.D.

Pipe I.D.

Connection O.D.

Connection I.D.

Weight Cumulative (lb/ft)* Weight (lb) 0 0 22108 44215 66323 88430 110538 132646 147262 147262 147262

Bouyant Weight (lb) 0 19212 38423 57635 76846 96058 115269 127970 127970 127970

1 2 3 4 5 6 7

36" Casing 36" Casing 36" Casing 36" Casing 36" Casing 36" Casing WHH*

36 36 36 36 36 36 36

33 33 33 33 33 33 33

36.12 36.12 36.12 36.12 36.12 36.12 36.12

32 32 32 32 32 32 32

552.69 552.69 552.69 552.69 552.69 552.69 696

* Overall weight for WHH and Mud Mat, not lb/ft.

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

LW 3-1-1 36" Drill-In Schedule


180 170 160 150 140 130 120 Slackoff Weight (k-lbs) 110 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 Penetration Below Mud Line, ft.

180 170 160 150 140 130 120 Slackoff Weight (k-lbs) 110 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 Penetration Below Mud Line, ft.

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Distance from mud line to 36" casing shoe (ft) Air Weight of 36" Casing (lb/ft) Air Weight of BHA from bit to Running tool (kips)

261 553 46 0

Depth BML (m)

Maximum Bouya Bouyant Working nt W/in Recomme WOB (k-lb) Neutral Csg 20% of Max. Bouya nded Wt "Csg Depth (kips) Bouyant Max. BHA nt Csg Working + Mud BML Min. Bouyant Wt (kips) BHA (kips) WOB Mat + (ft) Wkg. Wt (kips) (kips) (k-lb) WHH WOB (kips) (kips) 0.0 29.0 58.0 87.0 116.0 145.0 174.0 203.0 232.0 261.0 0 16 32 48 64 80 96 112 128 144 0 14 28 42 56 70 84 98 112 126 0 5 10 15 20 26 31 36 41 46 0 4 9 13 18 22 27 31 36 40 126 126 126 126 126 126 126 126 126 126 166 166 166 166 166 166 166 166 166 166 133 133 133 133 133 133 133 133 133 133 0 15 29 44 59 74 88 103 118 133 0 18 37 55 74 92 111 129 147 166

0 8.8 17.7 26.5 35.4 44.2 53.0 61.9 70.7 79.6

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

8.7.3 26 Hole/20 Surface Conductor Section Objective: Drill a 26 hole to 2085m. Run and cement 20 casing at 2080m. The site survey indicated a buried slump at 1540m RKB (140m below the mudline). The well will be on the edge of this slump and may miss it altogether. If the slump is penetrated it could cause some drilling problems with potential sloughing. If sloughing is evident the hi-vis sweep volume and/or frequency will have to be increased. Over pressure is not expected but there is a very slight possibility for a salt water flow (SWF). No other hazards were noted from the site survey. The 2D seismic predicted the potential of 8.8 ppg pore pressure at 1800 meters RKB. It is felt that the accuracy of the site survey is better than the 2D seismic. It is intended to drill this hole section with seawater and hi-vis sweeps unless there is an indication of any potential of increasing pore pressure or any type of flow. If either the pore pressure increases or a flow is observed then immediately switch to the pump and dump method. If the pump and dump method is began then a short trip back to the 36 shoe may be required to allow enough time to mix the proper amount of weighted mud. 11.5 ppg pad mud at 1800m plus the column of seawater = 9.0 ppg EMW 11.5 ppg pad mud at 2085m plus the column of seawater = 9.3+ ppg EMW Things to do prior to Drilling and Running casing: Strap the 20 casing, shoe, and 18 wellhead joint. Paint the bottom 3 meters of the 20 shoe joint yellow to aid with viewing the stab-in with the ROV. Paint the top 6 meters of the wellhead joint yellow with heavy black stripes every meter and smaller stripes every half meter to aid the ROV in viewing the land out. Install the centralizer stop rings on the 20 casing while on the pipe rack. Install 2 on the shoe joint 1 1.5 meters above the shoe and the 2nd one 3 meters below the box. Also install one per joint on the next 3 joints, install these midjoint. While the casing is on the pipe rack prepare the box of the shoe joint and the pin of the 2nd joint for thread lock. Make up and rack back the cement head stand (TIW/side-outlet pump-in sub/TIW). The amount of drill pipe above and below the cement head should be determined by the space / land out design. Install a lo-torque valve on the pump in sub after it has been made up. Secure same with a safety strap. Close the lo62

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

torque valve and tape this valve closed. Leave the TIWs in the open position. Ensure at least one TIW valve is available while drilling (Transocean is supposed to have 4 TIWs on the rig). Make up a 10 5 drill pipe pup joint and 4 IF box x 6 Reg Pin crossover on top of the 18 running tool. Move the running tool assembly to the pipe rack and install the running tool assembly into wellhead housing. While on the pipe rack install the ball and check valve assembly in the running tool. Verify all of the bull plugs are tight. Ensure the lockdown ring is run on the 18-3/4 wellhead housing. If possible pre-install the Standard Bucket Type Wellhead Housing Support Plate onto the wellhead housing while on the pipe rack. Ensure that the support plate will not slide down the wellhead joint as it is being picked up. Inspect the Nominal bore protector for roundness and any other previous marks/damage. If possible pre-install the Nominal bore protector while the wellhead housing is on the pipe rack. Out of the critical path, jet/rod out the side outlet cement ports on the 36 wellhead housing with the ROV if they are plugged. The inner string bowl and slips are rented from Weatherford. Ensure that at least 1400 bbls of 14.0 ppg mud has been mixed and is lined up to feed the DKD system. 1400 bbls of 14.0 ppg mud and 1400 bbls of 11.2 ppg CaCl2 will yield 3,800 bbls of 11.5 ppg mud. Reserve pits hold 2800 bbls. Rig up the DKD system and mix one pit full of 9.0 ppg mud. Note the setting on the DKD unit. Mix one pit of 11.5 ppg kill weight mud. Note the setting on the DKD unit.

Planned 20 Casing string: Shoe x S-60 box +/-49 joints of 20 casing (166.4 lb/ft S-60 Connections) 18 well head joint (S-60 pin x 18 wellhead) Pre-Drilling Notes: o It is planned to run 20 to 2080m. Drill the 26 hole to match the 20 casing strap plus 5m of rat hole. o Monitor the MWD PWD (ECD) values continuously as an indicator of hole cleaning and as an indicator of a water flow. o Monitor the MWD Resistivity for any indication of increased pore pressure. o Monitor the MWD Gamma Ray to ensure the casing shoe will NOT be set in a sand. Be prepared to adjust the shoe depth by one or two joints if necessary to get through a sand at hole section TD. o Have the ROV on bottom to monitor returns while drilling: Position the ROV near the wellhead to observe returns and to monitor for flow from the well. Occasionally monitor the cement ports below the low pressure housing assembly
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

to confirm that they are clear. While rotating the drill string take precautions to keep the ROV tether and umbilical away from the rotating drill string. o There is a very slight chance of Saltwater flows per the site survey. If one is observed the following procedure should be followed: Kill the well with weighted mud if the flow is strong. Determine the mud weight required to stop the flow so that 20 casing can be run with the well static. If the flow is slight attempt to drill ahead with seawater and increase the ROP to help increase the ECD. If drilling with ECD is determined not to be feasible then drill ahead with a weighted mud in a pump and dump manner. If the pump and dump method is used then displace the drill string with 80 bbls of seawater just prior to shutting down the mud pumps for a connection. This will balance the mud and thus allow the well to be observed for flow during the connection. Drilling Operation: 1) Make sure everything related to the 20 casing job is ready prior to moving forward as it should be planned to POOH and start running casing as soon as possible. 2) POOH with the jetting BHA. Lay down the 36 Drill Quip running tool, spacer subs and motor.

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

3) The drilling BHA will be: Item 26 DSJC bit w/ 4 x 24 jets Bit Sub bored for a float ARC Power Pulse High Flow MWD Stabilizer 8 Drill Collar Stabilizer 3 8 Drill collars Crossover Sub 9 - HWDP Jars 5 - HWDP Hydraulics Depth (ft) PV YP Mud Wt (ppg) Pump Psi MWD Psi Loss GPM OD ID Length Cum (inches) (inches) (feet) Length (feet) 26 2 2 9 8.25 8.41 26 blades, 8 body 8 26 blades, 8 body 8 7 5 6 5 In 5130 15 20 8.6 3400 640 1200 3.5 2.81 5.9 3 2 3 2 3 3 2 3 Out 6820 15 20 9.0 4000 640 1180 3 25 26 6 30 6 90 4 279 30 151 5 30 56 62 92 98 188 192 471 501 652 Air Weight Buoyed Wt Estimated air weight (lbs) 875 500 3,000 3,100 900 4,500 900 13,500 550 14,000 1,800 7,800 41,825lbs 36,400 lbs Connections 7 Reg Pin 7 Reg Box x 6 Reg Box 6 Reg Pin x 6 FH Box 6 FH Pin x 6 Reg Box 6 Reg 6 Reg 6 Reg 6 Reg 6 Reg Pin x 4 IF Box 4 IF 4 IF 4 IF Below Jars In seawater

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

4) Ensure the ROV is on bottom and ready to assist in stabbing the 26 bit into the 36 wellhead. 5) TIH, after the 26 bit is stabbed into the 36 well head run one more stand of drill pipe. Mark the connection at the rotary table with a good mark (paint). This will be an indicator on the trip out that the driller is one stand away from clearing the wellhead and thus will allow for the ROV to be ready to view this event. 6) Drill as fast as possible on the first stand or two to reduce the chances of washing out around the 36 shoe. Due to metal interference do not survey until the Bit is 30m (MWD 18m) away from the 36 shoe. Do not cycle the MWD tools while near the 36 shoe. 7) Drill ahead to planned casing point plus 5m (rathole) using seawater and pumping 50 bbl hi-vis sweeps at a minimum of every connection. No short trips are planned but the drilling supervisor should decide if one is needed due to hole conditions. 8) Make an assessment of the hole cleaning efficiency from the PWD and ROV observations. Sweep frequency and volumes should be adjusted as necessary.

Drilling Parameters
Bit Size 26 WOB 0 10 Rotary RPM >100 Jets 4 x 24 GPM 1200

9) Take MWD surveys on the fly every connection. If a survey is missed continue drilling. A good survey is required every 150m (500). 10) Backream each stand once prior to making a connection. Maintain the rotary at >100 RPM to aid in hole cleaning while backreaming. 11) While drilling the last stand prior to TD start displacing the hole with 11.5 ppg pad mud. 12) Note the amount of pad pumped when returns are observed at the seafloor. This will help with determining the amount of cement to be pumped.

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Annular Sections 36 Casing x 5 DP 26 OH x 5 DP

Unit Volume (bbls/ft) 1.03 0.632

Feet/meter 270 82m 1650 503m

Volume (bbls) 278 1045

Percent Excess 0 50

Total Volume (bbls) 278 1564

Cum.Total (bbls) 278 1842

13) After the hole is displaced with the 11.5 ppg pad mud strap out of the hole. If significant drag is noticed plan a wiper trip, otherwise POOH and run 20 casing. Have the ROV monitor the wellhead while the 26 bit is near the wellhead. Driller is to be cautious as to not set the bit down on the wellhead while setting the slips on the trip out of the hole. If necessary lay down a single to avoid the bit from bouncing on the top the wellhead while sitting in the slips. 14) While tripping, monitor the wellhead with the ROV to observe for flow. Stop with the bit 9m below the wellhead. Circulate and wash out well head. Monitor the well for flow. 15) Have the MWD crew rig up enough cable to allow plug in to the MWD and rack back of MWD prior to downloading the MWD. Plug into the MWD/LWD at the rotary table and rack the stand back. The download will be done offline and require a man to go up on the man-rider to unplug from the MWD/LWD after the download is complete. 16) During the last part of the drilling or on the trip out of the hole rig up Franks Casing equipment as much as possible. 17) Ensure that the top 6m of the wellhead and the bottom 3m of the shoe joint are painted yellow with black stripes every meter. Casing Running Operation: Clean one of the surface pits and start mixing the mix water for the cement job in the surface pit. Rig-up to run 20 166.4#, X-56, S-60 casing. 20 OD Casing 0.812 wall Weight Grade Pipe/Connector (ppf) Yield (1,000 lbs) 166.4 X-56 2741/1450 Burst Collapse Optimum Make(psi) (psi) up Torque* (ft*lbs) 3980 2510 20,000
67

* Minimum torque = 15,000 ft*lbs. Maximum torque = 50,000 ft*lbs


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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Once the float shoe is picked up verify flow through the float shoe is obtained. Back out the box protector and pin protector after the 2nd joint has been picked up and secured. Inspect the threads on the box and pin and ensure there is a light coat of API modified thread dope (first connection to be thread locked). Stab the pin into the box and set the entire weight of this joint down. Apply a chalk mark across the connection to monitor the amount of turn applied when making up the connection. of a turn is required to fully make up the connection. Apply the backup bull tong and the make-up bull tong and tighten the connection with 20,000 ft*lbs torque (minimum 15,000 ft*lbs torque, maximum 50,000 ft*lbs torque). Thread-lock the shoe joint to the next joint. Install the centralizers on the 1st 4 joints. Fill each joint with seawater as much as possible while picking up the next joint, do not slow or stop the operation to fill the casing at this time. The pipe will not fill up completely due to the air gap. Run all of the 20 casing. Prior to PU the wellhead joint change out the casing elevators to drill pipe elevators. Make up the 18 wellhead joint and install the wellhead housing support plate if it has not already been done. Land the wellhead housing support plate on the rotary. Back out the running tool and set aside. Install the Nominal Bore protector if it has not already been installed. Split the plastic protector of the wellhead housing in half and place on top of the wellhead housing. Install the drill pipe support plate on top of the plastic protector. Make up the 5 cement mule shoe and run the 5 inner string so that the end of the drill string is 12 meters (40) above the 20 shoe. PU and MU the running tool. The drill string should be rotated five (5) turns to the left to engage the running tool dogs into the wellhead. Verify the running tool is properly made up into the housing by checking the height of the indicator rod, it should be from the retainer ring. Turn the running tool back to the right of a turn to help ease the back out of the tool after jetting is complete. DO NOT EXCEED MORE THAN TURN TO THE RIGHT. Paint a vertical line on the stem and down onto the tool to aid the ROV in observing the turns to release the tool. Ensure the top-drive brake is locked to prevent rotation while RIH. PU and remove the hang off plate.
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Verify the ball valve is open, the check valve is installed properly, and all of the bull plugs are tight. Lower the assembly to the sea level and fill the 20 casing with seawater using the top drive. Once the 20 is full close the valve as required and continue in the hole. Fill the drill pipe with seawater after 15 stands. Over pull calculations: Casing Size Casing weight (lb/ft) Buoyed Weight (lb/ft) Footage Total Casing Weight (lbs) 5 Drill pipe tensile (premium) Inner String Weight (lbs) Drill pipe Weight (lbs) Maximum overpull (lbs) 20 166.4 137.1 144.9 585m (1920) 263,232 278,208 560,800 lbs 31,910 83,285 182,373 167,397

In 11.5 ppg mud (BF = 0.824) In seawater (BF = 0.871) In 11.5 ppg mud In seawater In seawater In seawater down to wellhead In 11.5 ppg mud w/csg at TD In seawater w/csg at TD

a) Have the ROV monitor the stab-in at the 36 wellhead. Also have the driller watch the weight indicator to ensure the 20 casing is not tagging up while entering the wellhead area. b) Once inside the 36 casing, stop at the first connection and displace the drill pipe with 11.5 ppg pad mud (85 bbls). CAUTION: Run in hole slowly and caution drillers to react quickly if a bridge is encountered to prevent buckling the drill pipe and/or 20 casing. Buckling and collapse are two problems associated with running 20 casing in deep water. THEREFORE, TO PREVENT BUCKLING, MONITOR THE PROGRESS OF 20
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BELOW THE MUD LINE WITH THE ROV AND COMPARE TO PROGRESS BELOW ROTARY i.e. slack off one meter of drill pipe, ROV should see one meter of casing movement into the wellhead. ALSO, MONITOR WEIGHT INDICATOR CONTINUOUSLY. c) While running 20 casing into the 36 wellhead housing observe for returns out each of the cement outlet valves. If there is any question as to whether the outlets or valves are plugged, use the ROV to jet them clean. d) Continue running the 20 casing on 5 drillpipe. Make up the cement stand and break circulation with 11.5 ppg pad mud. Gradually increase the circulating rate to full rate. Land the 18 housing into the 36 wellhead. Have the ROV monitor for settling as the weight is slacked off to latch the wellhead. Slack off a maximum of 75,000 lbs to latch the 18 wellhead. Once latched take an overpull of 50,000 lbs to verify latch. Continue circulating a minimum of one drill pipe (including inner string) volume plus 20 bbls (135 bbls total) of 11.5 ppg pad mud. e) Ensure there is no flow prior to cementing. RU and test the cement line. Close the upper TIW valve while hooking up the cement line. f) With the BJ cement unit mix the red dye into 10 bbls of seawater and pump same. Follow this with 90 bbls of seawater and a 50 bbl Mud Clean S spacer followed by cement as per cement program below. g) Have the ROV monitor for flow through cement ports on the 36 housing during circulation and cementing operations. h) The volumes below should be confirmed prior to the job.

Section 36 x 20 26 x 20 20 Shoe Joint

Unit Vol. (bbls/ft) 0.669 0.268 0.328

Feet 261 1658 30

Volum (bbls) 175 444.3 9.8

% Excess 0 100 0

Total Vol. (bbls) 175 888.6 9.8

Cum. Total (bbls) 175 1064 1073

Vol. (ft3) Per Section 980 4989 55

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This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 20 Cement (BHST = 60F) Recipe Cement (TOC @ mudline) Lafarge Class G + 17% LW-6 (microspheres) + 0.5 gps A-400L (strength enhancer) + 1.0 gps FL-45LS (Fluid Loss) + 0.13 gps CD-33L (Dispersant, turbulent flow inducer) + 0.01 gps R-8L (Retarder) + 0.03 gps FP-9L (Defoamer) 3400 sacks 1.78 Sea 5.55 gps 13.0 ppg 5 hours 14 minutes 6:56 hours 50 psi 13:20 hours 500 psi 24 hours 1289 psi i) Cement volumes should be calculated to bring the cement top back to the mudline and 100% excess in open hole. j) Displace the cement with seawater to the end of the inner string + 3 bbls. Leave TOC 10m above the 20 shoe. Monitor returns with the ROV throughout the cement job. Note returns and estimated amount of cement returns on report. k) There is 450 psi pressure difference in the hydrostatic of the cement and seawater when the cement is in place. Monitor the displacement pump pressure as an indication of the amount of lift. l) Release the pressure and check the floats. If the floats fail then pump back in with the volume bled off and hold the pressure for a minimum of one hour and repeat the bleed off procedure.
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Number of Sacks Yield (cuft/sx) Mix water type Mix water amount Weight of Slurry Pump Time (thickening time) 70Bc Compressive Strengths @ 45F

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

m) If there is no movement in the wellheads slack off and release the running tool. Be prepared to pull up to clear the running tool of the wellhead as quickly as possible. If the wellheads move downward while slacking off weight, hold the casing in place until the cement sets up. n) Once the running tool is backed out and cleared the well head, drop a foam wiper ball and pump 117 bbls. A slight pressure increase should be seen when the foam wiper ball lands out in the cement stinger. o) On the trip out caution the driller to monitor the end of the inner string while sitting down on slips when the inner string is close to the well head. If necessary lay down a single to avoid the end of the drill pipe bouncing on the top the wellhead while sitting in the slips. p) Break down the cement head once out of the hole. q) Have the ROV install a cover over the wellhead.

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20" Casing
18" WellHead

20", 166.4 #/ft S-60MT Threads

Install stop rings while casing is on pipe rack 1 centralizer at mid joint wrapped around stop ring 1 centralizer at mid joint wrapped around stop ring 1 centralizer at mid joint wrapped around stop ring Thread Lock 2 centralizers, 1 @ 1.5m above shoe, the other at 3m below box

Float Shoe preinstalled

Figure 21. 20" Casing Schematic


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8.7.4 BOPs, Stump Testing, Running and Testing Objective: Stump Test BOPs, Run and land BOPs. Test casing, connector against Blind Shear Rams and surface equipment. BOPs are to be configured from top down as: 5,000 psi Annular 5,000 psi Annular Upper Blind/Shear Lower Blind Shear 5 Pipe Rams 3 5 Variable Bore Pipe Rams The BOPS shall be stump tested against 3 and 5 drill pipe with 250 psi low and 7000 psi high except for the annulars which will be tested to 3500 psi high. Each test shall be held long enough to draw a straight line on a chart for a minimum of 5 minutes. The next full BOP test will be 21 days after this test is completed. The Husky Drilling Representatives should closely monitor subsea maintenance operations. Rubber goods and sealing elements should be inspected. Install a new cadmium plated VX ring gasket prior to running BOP. The 18 wellhead has a Cameron Hub profile looking up. Ensure the BOP Hydraulic Wellhead Connector has been changed to the Cameron Collet Connector. Ensure the funnel is used if the Dril-Quip Guidebase was not run with the 36 wellhead. After POOH with 18 wellhead running tool, rig up the rig floor for riser running. Move the rig at least 60m off location. Move the BOPs under the rig floor and run the BOP and riser. Test the choke, kill, rigid conduit, and boost lines after initial make-up, after every 20 joints of riser have been run, and again just prior to picking up the landing/slip joints. Refer to the Transocean riser design and Riser and BOP Running Procedures. Transocean states their policy is to test after every 10 joints of riser, but they have not had any leaks on the lines since 2001. If there are any delays in riser movement, or a need to move a boat along the side of the rig then conduct a test on the lines during this time. The choke and kill lines are to be tested to 7000 psi and the boost line to 1000 psi. Test the conduit line to the operating pressure of the control system. All of these tests shall be held long enough to verify there is no leak. While running BOP and Riser record the following on the Husky morning report:
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Buoyant weight of complete stack. Buoyant weight of stack and riser prior to landing on wellhead.

Have the ROV clean the wellhead area prior to landing the BOP. One joint prior to picking up the landing/slip joints: 1.) Have the ROV verify that the distance between the wellhead and the BOPs is the proper distance. 2.) Test the choke, kill, rigid conduit and boost lines. 3.) While making up the landing/slip joints move the rig back to location. Install riser tensioners on slip joint. Tension up riser and install surface choke, kill, and boost lines. Test the choke and kill lines to 250/7,000 psi, the boost line to 1,000 psi and the rigid conduit line to the operating pressure of the control system. Lower the BOPs over the wellhead and land same. Observe the landing with the ROV. Lock the BOPs to the wellhead with the ROV watching the latch movement. Verify BOP is latched with fluid gallon count and by observing the connector indicator with the ROV. Take a 50,000 lb over pull to verify lock. Function test control lines, pods, remote valves and accumulators. Set all the weight of the BOP (except 50,000 lbs.) on the wellhead to ensure that the 36/20 casing strings will support the BOP stack in case of disconnecting at a later date. Have the ROV monitor for any movement in the wellhead when the weight is sat down. While continuing the below and or rigging down the riser running equipment (i.e. offline) Rig up the BJ cement unit and break circulation down either the choke or kill line. Close the Upper Blind/Shear rams and test the Upper Blind/Shear Rams, Wellhead Connector and 20 casing to 250 psi low for 5 minutes and 900 psi high for 15 minutes, using seawater. Ensure that these tests are charted. Document the volume used vs. the pressure. This data will be used to compare with the shoe test after drilling out. Repeat this for the lower blind shear rams. Secure and tension the riser per Transocean policy. Have the ROV record the bulls-eye slope indicators on the BOP stack and the riser. Install an indexing line below the slip joint and extend to the rig floor. This line will be used to verify all landing depths for wear bushings and hangers.

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Once the slip joint is unlocked install the diverter. Function test the diverter system and flow through each valve. The TIWs and IBOPs should be tested off line in the sub-sea shop. If a manifold valve is leaking test it again off-line (while tripping) after it has been repaired or replaced. The BOPs are to be pressure tested every 21 days and function tested every 7 days. Document all test in the IADC and Husky daily report. The Blind/shear rams shall be functioned at least once per week. The Blind/shear rams shall be tested after each casing string is run. The test pressure shall be the casing test pressure. Document these events in the IADC and Husky daily report. Low Pressure Test Annulars All other components Blind Shears All surface equipment Surface Equipment Pipe Rams Annulars 20 x Blind Shears 13 x Blind Shears 9 x Blind Shears 250 250 250 250 250 250 250 250 250 250 High Pressure Test Stump Test 3,500 7,000 Low Pressure Test Time 5 5 5 5 5 5 5 5 5 5 High Pressure Test Time 5 5 15 5 5 5 5 15 15 15

Stack Landed Initially 900 5,000 Subsequent BOP Test 5000 5000 3500 Casing Test 900 1,750 3,000

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Discoverer 534 Date Well RKB- S/Bed EHOT with

Vesel Heading when landed BOP Bulls Eye LMRP Bulls Eye 2nd Slick Bulls Eye DP Stops Set @

1.18

2.04 Upper Annular

B L E E D

6.2

2.98 0.85 Lower Annular C H O K E

2.01 K I L L L I N E Upper Shears

0.49

Lower Shears

L I N E

1.33

MPR 0.489 VPR

13.31

7.11

1.94 20" W/Head Wellhead Connector

36" Housing Lower Pipe Rams : - 3 1/2"- 5" Variables with Shaffer Ultra Lock 2 B - Shaffer SL Upper Pipe Rams:- 5" Fixed, Posilocks- Shaffer SL Lower Shear Rams:- V Shear Shaffer SL with Posilocks Upper Shear Rams:- V Shear Shaffer SL with Posilocks Riser ID 19.75" -- Choke & Kill ID 3" ------ Booster ID 3.326"

Figure 22. BOP Schematic


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8.7.5 17 Hole/13 Intermediate Casing Section Objective: Drill 17 hole to 2,390m. Run and cement 13 casing at 2,385m. The Drillers Method will be used in a well control situation. Thing to do prior to running 13: Strap the 13 casing and the casing hanger. Install the centralizer stop rings on the casing while on the pipe rack. Ensure the mud loggers are rigged up and ready to go. Witness the loading of the drill pipe dart and the 2 ball into the cement head. Make-up and rack back the 13 casing hanger, complete with wiper plugs, see details below. Review hole section responsibilities with the mud loggers and MWD crew. Verify that the Franks Shark Bite was pre-installed into the pin end of the joint made up into the float collar. Have the mud engineer inspect the mud pits after they are cleaned. Once the pits are cleaned start preparing the Performax mud. While on the pipe rack prepare (clean) the box of the float shoe, pin and box of joint #2, pin and box of the float collar joint and the pin of joint #4 for thread locking.

13 casing Hanger Make up a 6 Reg Pin x 4 IF Box crossover sub on the bottom of a stand of 5 drill pipe. Pick up the 13 Running tool and land in the rotary. Make up the stand with the crossover into the top of the 13 Running tool and rack this assembly back. Use Transoceans 13 bowl and slips for the casing hanger make up. PU the 13 Casing hanger joint and land on the slips. Lower the running tool into the casing hanger while aligning the anti-rotation keys into their slots in the hanger. Allow the running tool to stroke closed. PU to stroke the running tool open until the anti-rotation keys start to rise. Rotate the running tool clockwise to ensure it is fully unlocked. Measure the distance from the top of the anti-rotation key to the bottom of the lower outer body of the running tool. It should measure 11. Rotate the running tool 3 turns counterclockwise, this will lock the tool open.

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Set the tool down and measure the distance from the top of the anti-rotation key to the bottom of the lower outer body of the running tool. It should measure 8. Rotate the running tool 4 turns counterclockwise. This will lock the tool to the hanger. Measure the distance between the knurled indicator band and the top of the hanger. It should be . Rotate the running tool 3 turns clockwise to unlock the tool from the hanger. Pick up out of the hanger and install new lead indicator pins. Verify the seal assembly rotates without binding. Install the wiper plugs. Black is top plug and red is bottom plug. Lower the wiper plugs / running tool assembly into the hanger. Water should be sprayed on the ID of the casing to help with installing the wiper plugs. Fill the void area above the wiper plugs with water. Align the anti-rotation keys. Set the entire weight of the running tool down. Rotate the running tool 3 turns counterclockwise to relock the tool to the hanger. Measure the distance between the knurled indicator band and the top of the hanger. It should be . Rack the assembly back using care to not damage the casing pin or the seal areas. Run the Nominal Bore Protector (information only as the bore protector should have been installed in the wellhead prior to running the wellhead): Make up the Multi-Purpose Tool (MPT) to a stand of 5 drill pipe. Install a rotary cover and set the nominal bore protector on the rotary table. Lower the MPT into the nominal bore protector aligning the J-lugs on the MPT with the J-slots of the nominal bore protector. Turn the MPT to the left turn. RIH and land out with a minimum of 20,000 lbs down. Do not set more than 60,000 lbs down. Adjust the weight to neutral at the tool and turn the drill string to the right turn using chain tongs. PU and retrieve the MPT. Verify the nominal bore protector was set by pumping down the choke or kill line at a high enough rate to establish 1000 psi. As the running tool is pulled by the inlet a pressure increase should be noted. Mark the drill pipe as soon as the pump pressure increases and again when the pump pressure drops. This length should be the length of the MPT (2). Once the MPT tool is laid down or in the case of the Nominal bore proctor being pre-installed prepare the MPT for retrieval of the Nominal Bore
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Protector by making up the Nominal Bore Protector Retrieval Adapter, Jet sub extension and Jet sub. Drilling Operations: 1) Make up the following BHA: Item 17 XR+ bit w/ 3 x 18 jets & 1 x 20 center jet Bit Sub bored for a float ARC Power Pulse High Flow MWD Stabilizer 8 Drill Collar Stabilizer 3 8 Drill collars Crossover Sub 9 HWDP Jars 5 HWDP Hydraulics Depth (ft) PV YP Mud Wt (ppg) Pump Psi MWD Psi Loss GPM
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OD ID Length Cum (inches) (inches) (feet) Length (feet) 17 1 1 9 8.25 8.41 17 blades, 8 body 8 17 blades, 8 body 8 7 5 6 5 In 6820 10 20 9.5 3775 640 1100 3.5 2.81 5.9 3 2 3 2 3 3 2 3 Out 7820 10 35 9.5 3900 640 1075 3 25 26 6 30 6 90 4 279 30 155 4 29 55 61 91 97 187 191 470 500 655 Air Weight Buoyed Wt

Estimated air weight (lbs) 875 500 3,000 3,100 900 4,500 900 13,500 550 14,000 1,800 7,800 41,025lbs 35,117 lbs

Connections 7 Reg Pin 7 Reg Box x 6 Reg Box 6 Reg Pin x 6 FH Box 6 FH Pin x 6 Reg Box 6 Reg 6 Reg 6 Reg 6 Reg 6 Reg Pin x 4 IF Box 4 IF 4 IF 4 IF Below Jars In 9.5 ppg mud

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2) Function test the diverter on the trip in the hole. Pump seawater through all lines at a maximum rate to ensure that the valves functioned and the lines are open. Conduct a BOP diverter drill. 3) While tripping in the hole displace the choke, kill and boost lines with 9.5 ppg Performax Mud. When displacing the choke, kill, and boost lines monitor the pit volume. The difference in the mud weights will cause a siphoning effect and relying on pump strokes alone could result in over displacement of these lines. 4) Build and pump a 50 bbl viscous spacer to be used in front of the Performax. Once on bottom and while drilling out the cement displace the hole with 9.5 ppg Performax Mud. Once the mud has reached the boost line start the 3rd mud pump on the boost line. Have the mud engineer at the gumbo box to monitor the returns. As soon as the mud is coming back start taking returns down the flow line. Do not drill the float shoe. Adjust the riser tension for the difference in the mud weights. 5) Start the displacement once a full stand is made up and do not make a connection until the displacement is finished to limit the amount of fluid contamination. While pumping the initial displacement pump as fast as possible and keep the drill pipe rotating during the entire time. 6) Keep the rotary RPM at 30 50 during the entire displacement. 7) Once the displacement is above the BOPs start pumping down the boost, choke and kill lines with the 3rd mud pump to ensure that all of the lines are full of good mud. After the displacement is complete obtain slow pump rates and choke and kill line friction pressures. 8) Drill the 20 shoe out, wash and ream the rat hole a few times to ensure it is clean of any cement. Keep the rotary RPM at 30 -50 while the stabilizers are inside the casing. Drill 3m of new hole and circulate long enough to get the cuttings above the BOPs. Once the cuttings are above the BOPs pick up high enough to leave the bit just inside of the 20 shoe. Perform a FIT (Formation Integrity Test) by pumping down both the drillpipe and the kill line at BPM. Monitor pressures every bbl. If a departure from a straight line is noticed shut down the pumps. The shoe should be tested to a maximum of 10.5 ppg EMW (355 psi with 9.5 ppg mud in the hole). If the shoe test is below 9.8 ppg EMW (105 psi with 9.5 ppg mud in the hole) notify the drilling superintendent.

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9) If a shoe squeeze is required POOH and rack back the BHA. TIH with open ended drill pipe to 2085m. Mix and spot 25 bbls of cement (8 bbls in open hole and 16m up into the 20 casing). POOH 2 stands, close the upper annular and perform a braiden/hesitation squeeze. This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 20 Shoe Squeeze (BHST = F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Cement Sacks Gps ppg

10) Open the upper annular and pump a foam wiper ball down the drill pipe. Continue pumping until bottoms up is above the BOPs. POOH and boost riser at the same time. 11) TIH with the same drilling BHA as above, drill out the cement and repeat the FIT. 12) Drill ahead to 2390m casing strap + 5m of rat hole. Once the stabilizers have cleared the casing shoe speed the rotary up to >100RPM.

Drilling Parameters
Bit Size 17 WOB 0 25 Rotary RPM >100 Jets 3 x 18, 20 CJ GPM 1100

13) Monitor the MWD Gamma Ray to ensure the casing shoe will NOT be set in a sand. Be prepared to adjust the shoe depth by one or two joints if necessary to get through a sand at hole section TD. 14) Monitor off slips weight, torque, drag, and PWD constantly to ensure the hole is being cleaned. Pump sweeps if necessary for hole cleaning. 15) As soon as it has been determined that the well is not flowing during a connection, kick in the riser pump and boost the riser while finishing making connections.
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16) Short trips are not planned for this hole section. The drilling supervisor shall conduct a short trip if it is warranted. 17) Back ream each stand once prior to each connection. Rotate the drill pipe at 100 RPM while back reaming each stand to aid in hole cleaning. 18) At TD, pump a 100 bbl hi-vis sweep and circulate the hole clean. Take an MWD survey. Strap out of the hole. 19) Note: If significant overpull or swabbing is observed, go back to bottom and circulate the hole clean. 20) A wiper trip is not planned but if excessive drag is noticed a wiper trip shall be conducted. 21) Once at TD obtain a temperature from the MWD to verify that cement pilot tests are run at the proper temperature. If any short trips are made note the bottom hole temperature and time off bottom on morning report. 22) Maintain the mud properties as per the table below: MW 9.5 PV ALAP YP 20-35 Gels 5/15 Filtrate pH <6 10.4 10.8 NaCl Cl 100k 140k HTHP < 15 LGS % <6

23) Ensure the MWD crew has rigged up enough cable to allow plug-in at the rotary table and rack back prior to downloading the MWD. 24) Make up the MPT tool complete with jet sub, jet sub extension and adapter. TIH and land out with 20,000 lbs down to snap into the groove on the ID of the nominal bore protector. 25) PU and retrieve the MPT/bore protector. 26) Verify the nominal bore protector was latched by pumping down the choke or kill line at a high enough rate to establish 1000 psi. As the running tool/bore protector is pulled by the inlet a pressure increase should be noted. Mark the drill pipe as soon as the pump pressure increases and again when the pump pressure drops. This length should be the length of the MPT plus the bore protector (7).

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27) Drift the landing string with a minimum 2.75 drift. The BJ dart is 2.59. Once out of the hole inspect the nominal bore protector for wear and/or damage. Redress the MPT for running of the 13 wear bushing offline. 28) Ensure the cement head stand is made up and racked back. 29) Rig up the floor to run the 13 casing. A casing swage is not required for this casing string. Make up 2 joints of casing between the float shoe and the float collar. Thread lock all connections from the top of the float collar down. Once the float shoe is picked up ensure flow is obtained through it. Also once the float collar is made up ensure flow through it. 30) If the hole has been acting good consider closing the lower blind shear rams and open up all valves on the Choke line while running the casing. This would reduce the surge on the formation and allow the well to be monitored. 31) All casing must be strapped and drifted to 12. Ensure that no scale or other foreign items were left in the casing. Visually verify that float equipment is free of debris. 32) See casing schematic at the end of this section Weight Grade Pipe Burst* Collaps 13 (psi) e (psi) (ppf) Yield Casing BTC (1,000 lbs) threads 0.48 wall 68 N-80 1556 5020 2260 *Leak Resistance = 4930 psi Joint Strength (1,000 lbs) 1585 Coupling OD (inches) 14.375 ID (inches) 12.415

33) Continue running the 13 casing. Fill the casing with mud every joint as much as possible while lowering the joint. Once all of the casing is run completely fill the casing with mud while changing to the drill pipe elevators. Pick up and make up the casing hanger assembly, monitor the running tool to make sure it is not backing out of the hanger while making up the casing hanger joint. 34) NOTE: If BOPs need to be tested run the Transocean test joint on top of the Casing hanger running tool. Drift the joint to ensure the darts will pass through. As a reminder the BOPs shall be function tested every 7 days and pressure tested every 21 days. 35) Monitor returns while running each joint and adjust the running speed if returns are falling off. The pit gain should be 7 bbls gain (1 bbl gain after fill-up) for every 12.2m joint of casing run. Once on drill pipe the gain should
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be 2 bbls gain for each stand of dry drill pipe run. Run 20 stands of drill pipe and break circulation for 15 minutes. Open the blind shear rams and continue running the casing. Leave the choke, kill, and boost lines open to aid in mud flow-by Fill the drill pipe again after 20 stands (13 shoe should be at the 20 shoe) and break circulation for 15 minutes. 36) Slack-off slowly while lowering the hanger through the BOP and prior to landing hanger. Over pull calculations: Casing Size Casing weight (lb/ft) Buoyed Weight (lb/ft) Footage Total Casing Weight (lbs) 5 Drill pipe tensile (premium) Drill pipe Weight (lbs) Maximum overpull (lbs) 13 68 58.1 890m (2919) 169,512 560,800 lbs 95,437 195,850

In 9.5 ppg mud (BF = 0.854) In 9.5 ppg mud In 9.5 ppg mud down to wellhead In 9.5 ppg mud w/csg at TD

37) Space out with BJ cement head. Land the 13 casing hanger in the 18 wellhead with 20,000 lbs down. Recheck drill pipe measurements to verify depth. Close the choke and kill lines. Rig up and test cement lines. 38) Circulate and condition mud at a reduced rate and slowly staging up to until at least one complete drillpipe + casing volume (520 bbls) has been pumped. If mud losses are experienced then start cementing so as to minimize mud losses. 39) Pump 100 bbls MCS spacer. Mix and pump cement per below table. Kick out top plug dart with cement. Displace cement with 9.7 ppg Performax mud. Bump plugs with 500 1000 psi over circulating pressure (Wiper plugs are rated for 4500 psi maximum). Do not pump more than 6 bbls (half of shoe track) over calculated displacement. Slow the displacement to 1 bpm on the last 10 bbls of displacement. The 1st plug (bottom plug) should launch with 800 1200 psi. The 2nd plug (top plug) should launch with 1800 1900 psi. 40) The volumes below should be confirmed prior to the job.

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Unit Vol. Ft. (bbls/ft) 17 x 13 0.124 500 13 Shoe Trac 0.15 85 Section

Vol. (bbls) 62 13

Percent Excess 50 0

Total Vol. (bbls) 93 13

Cum. Total (bbls) 93 491

Vol.(ft3) Per Section 522 73

This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 13 Cement Cement (BHST = 80F) TOC at 2233m (152m above 13 shoe) Recipe LAFARGE Class G + 0.5 gps FL-45LS (Fluid loss control) + 0.2 gps CD-33L (Dispersant) + 0.03 gps FP-9L (Defoamer) + Sea water Number of Sacks 504 sacks Yield 1.18 cuft/sx Mix water type Sea Mix water amount 4.57 gps Weight of Slurry 15.8 ppg Pump Time 4 hours 54 minutes (thickening time) 70Bc Compressive 24 hours 2620 psi Strengths @ 70F 41) Cement volumes should be calculated for to bring the cement top back to 152m (500) above the 13 casing shoe with 50% excess in open hole. 42) Note returns on the morning report. 43) The hydrostatic of the 152m column of cement = 9.9 ppg EMW. 44) There is 55 psi pressure difference in the hydrostatic of the cement and 9.5 ppg mud on the backside when the cement is in place (assumes displaced with 9.7 ppg mud). Monitor the displacement pump pressure as an indication of the amount of lift. 45) Release the pressure and check the floats. If the floats fail then pump back in with the volume bled off and hold the pressure for a minimum of one hour and repeat the bleed off procedure. 46) Break the cement line off and leave the lo-torque valve open.
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47) Set 20,000 lbs down and mark the drill pipe at the rotary and again 1 foot above the rotary. Also mark a vertical line on the drill pipe. Rotate the drill pipe 5 - 6 turns to the right. The drill pipe should drop 10 verify drop with marks on drill pipe. Set an additional 50,000lbs down (70,000 lbs maximum) to fully energize the seal assembly. 48) Rig up the cement unit to pump down the kill line. Break circulation down the kill line and up the riser, ensure the drill pipe is full and open to the atmosphere. Close the kill line valve(s) and test them to 7,000 psi. Open the kill line valve(s) and close the pipe rams. Pressure up to 4,000 psi as fast as possible to hydraulically set the annulus seal assembly. Monitor the volume pumped. If more than 1 bbl is pumped shut down and determine where the fluid is being pumped. Continue pressuring up to a maximum of 6,000 psi. Hold this pressure for 5 minutes. Bled off the pressure after testing and open the pipe rams. 49) Test the BOPS now if it is anticipated that a total of 21 days since the last BOP test will elapse prior to running the 9 casing string. 50) After the pressure test(s) are completed ensure all rams/annulars are open and pick straight up to release the running tool from the seal assembly. 7,500 lbs per shear pin overpull should be noticed when releasing the running tool. To confirm the seal assembly was properly set pick up an additional meter and break circulation down the drill pipe for 2 minutes. Set back down with 70,000 lbs maximum and retest the seal assembly as above. Open the ram and POOH. 51) Re-dress the BJ cement head with the 9 darts offline. 52) The Blind Shear rams vs. casing must be tested prior to drilling ahead. This will be done on the trip in the hole with the 12 BHA. Run and Set the wear bushing: Inspect the wear bushing for any wear or damage. Make up the Multi-Purpose Tool (MPT) to a stand of 5 drill pipe. Install a rotary cover and set the 13 wear bushing on the rotary table. Lower the MPT into the wear bushing and snap into the wear bushing. Pick up to verify the wear bushing is properly engaged. RIH and land out with a minimum of 20,000 lbs down. Do not set more than 60,000 lbs down. PU and retrieve the MPT. 30,000 lb overpull should be noticed when releasing from the wear bushing.
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Verify the wear bushing was set by pumping down the choke or kill line at a high enough rate to establish 1000 psi. As the running tool is pulled by the inlet a pressure increase should be noted. Mark the drill pipe as soon as the pump pressure increases and again when the pump pressure drops. This length should be the length of the MPT (2). POOH and lay down the MPT tool. Dress the MPT tool for retrieving the wear bushing offline.

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13" Casing

13", 68 #/ft N-80 Buttress Threads

1 centralizer over collar every 3rd joint for next 6 centralizers

1 centralizer over collar every 3rd joint for next 7 centralizers 9 centralizers Total

1 centralizer over collar every 3rd joint for next 8 centralizers

1 centralizer over collar above float collar Franks Shark Bite preinstalled Thread Lock Float Collar 2 centralizers, 1 @ 5' above shoe, the other at 10' below box 4 centralizers 2 centralizers, 1 @ 5' above shoe, the other at 10' below box

Float Shoe preinstalled

Figure 23. 13 3/8" Casing Schematic


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8.7.6 12 Hole/9 Intermediate Casing Section Objective: Drill 12 hole to 3,165m. Log. Run and cement 9 casing at 3,160m. Thing to do prior to running 9: Strap the 9 casing and the casing hanger. Install the centralizer stop rings on the casing while on the pipe rack. Witness the loading of the drill pipe dart and 2 ball into the cement head. Make-up and rack back the 9 casing hanger, complete with wiper plugs, see details below. Review hole section responsibilities with the mud loggers and MWD crew. Verify that the Franks Shark Bite was pre-installed into the pin end of the joint made up into the float collar. While on the pipe rack prepare (clean) the box of the float shoe, pin and box of joint #2, pin and box of the float collar joint and the pin of joint #4 for thread locking. Verify the bullnose on the hole opener has been strap welded.

9 casing Hanger a. Make up a 6 Reg Pin x 4 IF Box crossover sub on the bottom of a stand of 5 drill pipe. b. Pick up the 9 Running tool and land in the rotary. c. Make up the stand with the crossover into the top of the 9 Running tool and rack this assembly back. d. Use Transoceans 9 bowl and slips for the casing hanger make up. e. PU the 9 Casing hanger joint and land on the slips. f. Lower the running tool into the casing hanger while aligning the antirotation keys into their slots in the hanger. Allow the running tool to stroke closed. g. PU to stroke the running tool open until the anti-rotation keys start to rise. h. Rotate the running tool clockwise to ensure it is fully unlocked. i. Measure the distance from the top of the anti-rotation key to the bottom of the lower outer body of the running tool. It should measure 11. j. Rotate the running tool 3 turns counterclockwise, this will lock the tool open. k. Set the tool down and measure the distance from the top of the antirotation key to the bottom of the lower outer body of the running tool. It should measure 8. l. Rotate the running tool 4 turns counterclockwise. This will lock the tool to the hanger. Measure the distance between the knurled indicator band and the top of the hanger. It should be
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m. Rotate the running tool 3 turns clockwise to unlock the tool from the hanger. n. Pick up out of the hanger and install new lead indicator pins. o. Make up the seal assembly and verify the seal assembly rotates without binding. p. Install the wiper plugs. Black plug on top and red plug on bottom q. Lower the wiper plugs / running tool assembly into the hanger. Water should be sprayed on the ID of the casing to help with installing the wiper plugs. Fill the void area above the wiper plugs with water. r. Align the anti-rotation keys. Set the entire weight of the running tool down. s. Rotate the running tool 3 turns counterclockwise to relock the tool to the hanger. t. Measure the distance between the knurled indicator band and the top of the hanger. It should be u. Rack the assembly back using care to not damage the casing pin or the seal areas.

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Drilling Operations: 1) Make up the following BHA: Item OD ID Length Cum (inches) (inches) (feet) Length (feet) 12 12 1 1 S519BHPX bit w/ 7 x 12 jets Bit Sub bored 8 3 3 4 for a float ARC Power Pulse High Flow MWD Stabilizer 8 Drill Collar Stabilizer 3 8 Drill collars Crossover Sub 9 - HWDP Jars 5 - HWDP Hydraulics Depth (ft) PV YP Mud Wt (ppg) Pump Psi MWD Psi Loss GPM 8.25 8.41 12 blades, 8 body 8 12 blades, 8 body 8 7 5 6 5 In 7820 10 20 9.7 4000 670 1050 2.81 5.9 3 2 3 2 3 3 2 3 Out 10,380 10 35 10.2 4000 670 925 25 26 6 30 6 90 4 279 30 155 29 55 61 91 97 187 191 470 500 655 Air Weight Buoyed Wt

Estimated air weight (lbs) 575 400 3,000 3,100 900 4,500 900 13,500 550 14,000 1,800 7,800 41,425lbs 34,900 lbs

Connections 6 Reg Pin 6 Reg Box x 6 Reg Box 6 Reg Pin x 6 FH Box 6 FH Pin x 6 Reg Box 6 Reg 6 Reg 6 Reg 6 Reg 6 Reg Pin x 4 IF Box 4 IF 4 IF 4 IF Below Jars In 10.2 ppg mud

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2) While making up the BHA rig up the cement unit to test the Blind Shear rams vs. 13 casing. Break circulation and close the Upper Blind Shear rams. Test the casing/Blind Shear Rams to 250 psi low for 5 minutes and 1750 psi high for 30 minutes. Repeat this on the lower Blind Shear rams. 3) Function test the diverter on the trip in the hole. Conduct a BOP diverter drill. 4) While making up the BHA / tripping in the hole displace the choke, kill, and boost lines and riser with 9.7 ppg Performax Mud. 5) Drill the 13 shoe out, wash and ream the rat hole a few times to ensure it is clean of any cement. Keep the rotary RPM at 30 -50 while the stabilizers are inside the casing. Drill 3m of new hole and circulate long enough to get the cuttings above the BOPs. Once the cuttings are above the BOPs pick up high enough to leave the bit just outside of the 13 shoe. Perform a FIT (Formation Integrity Test) by pumping down both the drillpipe and the kill line at BPM. Monitor pressures every bbl. If a departure from a straight line is noticed shut down the pumps. The shoe should be tested to a maximum of 11 ppg EMW (530 psi with 9.7 ppg mud in the hole). If the shoe test is below 10.6 ppg EMW (365 psi with 9.7 ppg mud in the hole) notify the drilling superintendent. 6) If a shoe squeeze is required POOH and rack back the BHA. TIH with open ended drill pipe to 2385m. Mix and spot 25 bbls of cement (8 bbls in open hole and 35m up into the 13 casing). POOH 3 stands, reverse out 1.5 drillpipe volumes (200 bbls), close the upper annular and perform a braiden/hesitation squeeze. This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 13 Shoe Squeeze Cement (BHST = F) Recipe Number of Sacks Sacks Yield Mix water type Mix water amount Gps Weight of Slurry Ppg 7) Open the upper annular and pump a foam wiper ball down the drill pipe. Continue pumping until bottoms up is above the BOPs. POOH and boost riser at the same time.
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8) TIH with the same drilling BHA as above, drill out the cement and repeat the FIT. 9) Drill ahead to 3165m casing strap + 5m of rat hole. Once the stabilizers have cleared the casing shoe speed the rotary up to >100RPM. It is planned to set this casing shoe 80m above the potential pay zone.

Drilling Parameters
Bit Size 12 WOB 0 25 Rotary RPM >100 Jets 7 x 12 GPM 1050 - 925

10) Monitor the MWD Gamma Ray to ensure the casing shoe will NOT be set in a sand. Be prepared to adjust the shoe depth by one or two joints if necessary to get through a sand at hole section TD. 11) Monitor off slips weight, torque, drag, and PWD constantly to ensure the hole is being cleaned. Pump sweeps if necessary for hole cleaning. 12) As soon as it has been determined that the well is not flowing during a connection, kick in the riser pump and boost the riser while finishing making connections. 13) Short trips are not planned for this hole section. The drilling supervisor shall conduct a short trip if it is warranted. 14) Back ream each stand once prior to each connection. Rotate the drill pipe at 100 RPM while back reaming each stand to aid in hole cleaning. 15) At TD, pump a 100 bbl hi-vis sweep and circulate the hole clean. Take an MWD survey. Strap out of the hole. 16) Note: If significant overpull or swabbing is observed, go back to bottom and circulate the hole clean. 17) A wiper trip is not planned but if excessive drag is noticed a wiper trip shall be conducted. 18) Once at TD obtain a temperature from the MWD to verify that cement pilot tests are run at the proper temperature. If any short trips are made note the bottom hole temperature and time off bottom on morning report.
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19) Maintain the mud properties as per the table below: MW 9.7 10.2 PV ALAP ALAP YP 20-35 20-35 Gels 5/15 5/15 Filtrate pH <6 10.4 10.8 <6 10.4 10.8 NaCl Cl 100k 140k 100k 140k HTHP < 15 < 15 LGS % <6 <6

20) Ensure the MWD crew has rigged up enough cable to allow plug-in at the rotary table and rack back prior to downloading the MWD. Logging Operations: a) Once out of the hole rig up wire line. Three logging runs are planned: b) c) d) e) Log #1 PEX/AIT/DSI/EMS/GR from section TD up to the 13 shoe. Log #2 GR/CNT from the 13 shoe up to the wellhead (cased hole) Log #3 VSI/GR from section TD to 26 shoe to the wellhead Ensure the logging crew brought a strip over kit with their tools. Monitor the logging operations for indications of ledges, excessive line pulls, sticky hole sections, or fill on bottom. Do all Open Hole repeat sections as close to the casing shoe as possible. Boost the riser and pump through the choke and kill lines in between logging runs. A wiper trip after logging is not planned. If one is made TIH with 12 Hole opener BHA:

f) g)

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Item 12 Hole Opener Bit Sub bored for a float ARC Power Pulse High Flow MWD Stabilizer 8 Drill Collar Crossover Sub 9 - HWDP Jars 5 - HWDP

OD ID Length Cum (inches) (inches) (feet) Length (feet) 12 6 6 8 8.25 8.41 12 blades, 8 body 8 7 5 6 5 3 2.81 5.9 3 2 3 3 2 3 3 25 26 6 30 4 279 30 155 4 29 55 61 91 141 420 450 605

Estimated air weight (lbs) 575 400 3,000 3,100 900 4,500 550 14,000 1,800 7,800

Connections 6 Reg Pin 6 Reg Box x 6 Reg Box 6 Reg Pin x 6 FH Box 6 FH Pin x 6 Reg Box 6 Reg 6 Reg 6 Reg Pin x 4 IF Box 4 IF 4 IF 4 IF

Wear Bushing Retrieval: a) Make up the MPT tool complete with jet sub, jet sub extension and adapter. TIH and land out with 20,000 lbs down to snap into the groove on the ID of the wear bushing. b) PU and retrieve the MPT/wear bushing. A 7,500 lb overpull per shear pin should be noticed. c) Verify the wear bushing was latched by pumping down the choke or kill line at a high enough rate to establish 1000 psi. As the running tool/wear bushing is pulled by the inlet a pressure increase should be noted. Mark the drill pipe as soon as the pump pressure increases and again when the pump pressure drops. This length should be the length of the MPT plus the wear bushing (6). d) Drift the landing string with a minimum 2.75 drift. The BJ dart is 2.59. Once out of the hole inspect the wear bushing for wear and/or damage. Redress the MPT for running of the 9 wear bushing offline. e) Ensure the cement head stand is made up and racked back.
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Casing/Cement Operations: I. Rig up the floor to run the 9 casing. A casing swage is required for this casing string. Make up 2 joints of casing between the float shoe and the float collar. Thread lock all connections from the top of the float collar down. Once the float shoe is picked up ensure flow is obtained through it. Also once the float collar is made up ensure flow through it. II. If the hole has been acting good consider closing the lower blind shear rams and open up all valves on the Choke line while running the casing. This would reduce the surge on the formation and allow the well to be monitored. III. All casing must be strapped and drifted to 8. Ensure that no scale or other foreign items were left in the casing. Visually verify that float equipment is free of debris. IV. See casing schematic at the end of this section 9 Casing BTC threads 0..472 wall Weight (ppf) 47 Grade Pipe Yield (1,000 lbs) 1086 Burst (psi) 6870 Collaps e (psi) 4760 Joint Strength (1,000 lbs) 1161 Coupling OD (inches) 10.625 ID (inches) 8.681

N-80

V. Continue running the 9 casing. Fill the casing with mud every joint as much as possible while lowering the joint. If the Blind shear rams were closed be sure and open them after 115 joints of casing have been run. Leave the choke and kill line valves open to aid in mud flow by. Once all of the casing is run completely fill the casing with mud while changing to the drill pipe elevators. Pick up and make up the casing hanger assembly, monitor the running tool to make sure it is not backing out of the hanger while making up the casing hanger joint. VI. NOTE: If BOPs need to be tested run the Transocean test joint on top of the Casing hanger running tool. Drift the joint to ensure the darts will pass through. As a reminder the BOPs shall be function tested every 7 days and pressure tested every 21 days. VII. Monitor returns while running each joint and adjust the running speed if returns are falling off. The pit gain should be 3.6 bbls gain (0.7 bbl gain after fill-up) for every 12.2m joint of casing run. Once on drill pipe the gain should be 2 bbls gain for each stand of dry drill pipe run. Run 20 stands
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of drill pipe and break circulation for 15 minutes, 9 shoe should be at the 13 shoe. Continue running casing on drillpipe. VIII. Slack-off slowly while lowering the hanger through the BOP and prior to landing hanger. Over pull calculations: Casing Size Casing weight (lb/ft) Buoyed Weight (lb/ft) Footage Total Casing Weight (lbs) 5 Drill pipe tensile (premium) Drill pipe Weight (lbs) Maximum overpull (lbs) 9 47 39.6 1665m (5461) 216,265 560,800 lbs 94,208 250,327

In 10.2 ppg mud (BF = 0.843) In 10.2 ppg mud In 10.2 ppg mud down to wellhead In 10.2 ppg mud w/csg at TD

IX. Space out with BJ cement head. Land the 9 casing hanger in the 18 wellhead with 20,000 lbs down. Recheck drill pipe measurements to verify depth. Close the choke and kill lines. Rig up and test cement lines. X. Circulate and condition mud at a reduced rate and slowly staging up to until at least one complete drillpipe + casing volume (485 bbls) has been pumped. If mud losses are experienced then start cementing so as to minimize mud losses. XI. Pump 100 bbls MCS spacer. Mix and pump cement per below table. Kick out top plug dart with cement. Displace cement with 10.5 ppg Performax mud. Bump plugs with 500 1000 psi over circulating pressure. Do not pump more than 3 bbls (half of shoe track) over calculated displacement. Slow the displacement to 1 bpm on the last 10 bbls of displacement. The pressure required to launch the 1st plug (bottom plug) should be 800 -1200 psi. The 2nd plug (top plug) should launch with 1800 1900 psi. XII. The volumes below should be confirmed prior to the job. Unit Volume Feet (bbls/ft) 12 x 9 0.056 1000 9 Shoe Track 0.073 85 Section
December, 2005

Volume Percent (bbls) Excess 56 35 6.2 0

Total Volume (bbls 76 6

Cum. Total (bbls) 76 210

Volume(ft3) Per Section 425 35


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This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 9 Cement (BHST = 185F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Pump Time (thickening time) 70Bc Compressive Strengths @ 185F Cement TOC at 2860m (300m above 9 shoe) LAFARGE Class G + 0.04 gps A-3L (extender) + 0.1 gps CD33L (Dispersant) + 0.06 gps R-8L (Retarder) + 0.03 gps FP-9L (defoamer) + Sea water 390 sacks 1.18 cuft/sx Sea 5.07 gps 15.8 ppg 6 hours 01 minutes 24 hours 3050 psi

XIII. Cement volumes should be calculated to bring the cement top back to 300m (1000) above the 9 casing shoe with 35% excess in open hole. XIV. Note returns on the morning report. XV. The hydrostatic of the 300m column of cement = 10.7+ ppg EMW. XVI. There is 106 psi pressure difference in the hydrostatic of the cement and 10.2 ppg mud on the backside when the cement is in place (assumes displaced with 10.5 ppg mud). Monitor the displacement pump pressure as an indication of the amount of lift. XVII. Release the pressure and check the floats. If the floats fail then pump back in with the volume bled off and hold the pressure for a minimum of one hour and repeat the bleed off procedure. XVIII. Set 20,000 lbs down and mark the drill pipe at the rotary and again 1 foot above the rotary. Also mark a vertical line on the drill pipe. Rotate the drill pipe 5 - 6 turns to the right. The drill pipe should drop 10 verify drop with marks on drill pipe. Set an additional 50,000lbs down (70,000 lbs maximum) to fully energize the seal assembly. XIX. Rig up the cement unit to pump down the kill line. Ensure the drill pipe is full and open to monitor for leaks past the seal assembly. Break circulation down
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the kill line and up the riser. Close the kill line valve(s) and test them to 7,000 psi. Open the kill line valve(s) and close the pipe rams. Pressure up to 4,000 psi as fast as possible to hydraulically set the annulus seal assembly. Monitor the volume pumped. If more than 1 bbl is pumped shut down and determine where the fluid is being pumped. Continue pressuring up to a maximum of 6,000 psi. Hold this pressure for 5 minutes. Bled off the pressure after testing and open the pipe rams. XX. Test the BOPS now if it is anticipated that a total of 21 days since the last BOP test will elapse prior to drilling to TD and logging. XXI. After the pressure test(s) are completed ensure all rams/annulars are open and pick straight up to release the running tool from the seal assembly. 7,500 lbs per shear pin overpull should be noticed when releasing the running tool. To confirm the seal assembly was properly set pick up an additional meter and break circulation down the drill pipe for 2 minutes. Set back down with 70,000 lbs maximum and retest the seal assembly as above. Open the ram and POOH. XXII. The Blind Shear rams vs. casing must be tested prior to drilling ahead. This will be done on the trip in the hole with the 8 BHA. Run and Set the wear bushing: Inspect the wear bushing for any wear or damage. Make up the Multi-Purpose Tool (MPT) to a stand of 5 drill pipe. Install a rotary cover and set the 9 wear bushing on the rotary table. Lower the MPT into the wear bushing and snap into the wear bushing. Pick up to verify the wear bushing is properly engaged. RIH and land out with a minimum of 20,000 lbs down. Do not set more than 60,000 lbs down. PU and retrieve the MPT. 30,000 lb overpull should be noticed when releasing from the wear bushing. Verify the wear bushing was set by pumping down the choke or kill line at a high enough rate to establish 1000 psi. As the running tool is pulled by the inlet a pressure increase should be noted. Mark the drill pipe as soon as the pump pressure increases and again when the pump pressure drops. This length should be the length of the MPT (2). POOH and lay down the MPT tool. Dress the MPT tool for retrieving the wear bushing offline.

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9" Casing

9", 47 #/ft N-80 BTC

1 centralizer over collar every 3rd joint for next 7 centralizers 9 centralizers

1 centralizer over collar every 3rd joint for next 8 centralizers

1 centralizer over collar above float collar Franks Shark Bite preinstalled Float Collar Thread Lock 2 centralizers, 1 @ 5' above shoe, the other at 10' below box 2 centralizers, 1 @ 5' above shoe, the other at 10' below box

4 centralizers on shoe track

Float Shoe preinstalled

Figure 24. 9 5/8" Casing Schematic


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8.7.7 8 Hole Section Objective: Drill 8 hole to 4,094m. Log. Thing to do prior to Drilling Ahead: Review hole section responsibilities with the mud loggers and MWD crew. Verify the bullnose on the hole opener has been strap welded. Drilling Operations: 1) Make up the following BHA:
Item 8 MA616BPX bit w/ 6 x 10 jets Bit Sub bored for a float ARC Power Pulse MWD Stabilizer Crossover sub 6 Drill collar Crossover sub Stabilizer Crossover sub 3 6 Drill collars Crossover sub 9 - HWDP Jars 5 - HWDP Hydraulics Depth (ft) PV YP Mud Wt (ppg) Pump Psi MWD Psi Loss GPM December, 2005 OD (inches) 8 6 6 6.89 8 blades, 6 body 7 6 7 8 blades, 6 body 7 6 7 5 6 5 In 10,380 10 25 10.5 4000 560 580 5.11 2 3 2.81 3 2 3 2.81 3 3 2 3 Out 13,200 10 35 11 4000 560 525 ID (inches) 2.81 Length (feet) 1 3 25 26 6 4 30 4 6 4 90 4 279 30 155 Cum Length (feet) 1 4 29 55 61 65 95 99 105 109 199 203 482 512 667 Air Weight Buoyed Wt Estimated air weight (lbs) 500 300 3,400 2,400 400 550 2,750 550 400 550 8,250 550 14,000 1,800 7,800 34,600bs 28,750 lbs Connections 4 Reg Pin 4 Reg Box x 4 IF Box 4 IF Pin x 5 FH Box 5 FH Pin x 4 IF Box 4 IF 4 IF Pin x 4 IF Box 4 IF 4 IF Pin x 4 IF Box 4 IF Pin x 4 IF Box 4 IF Pin x 4 IF Box 4 IF 4 IF Pin x 4 IF Box 4 IF 4 IF 4 IF Below Jars In 11 ppg mud

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2) While making up the BHA rig up the cement unit to test the Blind Shear rams vs. 9 casing. Break circulation and close the Upper Blind Shear rams. Test the casing/Blind Shear Rams to 250 psi low for 5 minutes and 3,000 psi high for 30 minutes. Repeat this on the lower Blind Shear rams. 3) Function test the diverter on the trip in the hole. Conduct a BOP diverter drill. 4) While making up the BHA / tripping in the hole displace the choke, kill, and boost lines and riser with 10.5 ppg Performax Mud. 5) Drill the 9 shoe out, wash and ream the rat hole a few times to ensure it is clean of any cement. Keep the rotary RPM at 30 -50 while the stabilizers are inside the casing. Drill 3m of new hole and circulate long enough to get the cuttings above the BOPs. Once the cuttings are above the BOPs pick up high enough to leave the bit just outside of the 9 shoe. Perform a FIT (Formation Integrity Test) by pumping down both the drillpipe and the kill line at BPM. Monitor pressures every bbl. If a departure from a straight line is noticed shut down the pumps. The shoe should be tested to a maximum of 12.5 ppg EMW (1080 psi with 10.5 ppg mud in the hole). If the shoe test is below 11.5 ppg EMW (540 psi with 10.5 ppg mud in the hole) notify the drilling superintendent. 6) If a shoe squeeze is required POOH and rack back the BHA. TIH with open ended drill pipe to 3,165m. Mix and spot 12 bbls of cement (4 bbls in open hole and 35m up into the 9 casing). POOH 3 stands, reverse out 1.5 drill pipe volumes (260 bbls), close the upper annular and perform a braiden/hesitation squeeze. This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 9 Shoe Squeeze (BHST = F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Cement Sacks Gps Ppg

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7) Open the upper annular and pump a foam wiper ball down the drill pipe. Continue pumping until bottoms up is above the BOPs. POOH and boost riser at the same time. 8) TIH with the same drilling BHA as above, drill out the cement and repeat the FIT. 9) Drill ahead to 4,094m. Once the stabilizers have cleared the casing shoe speed the rotary up to >100RPM. As with any exploration well TD could be changed depending on knowledge gained while drilling the well.

Drilling Parameters
Bit Size 8 WOB 0 25 Rotary RPM >100 Jets 6 x 10 GPM 580 - 525

10) Monitor off slips weight, torque, drag, and PWD constantly to ensure the hole is being cleaned. Pump sweeps if necessary for hole cleaning. 11) As soon as it has been determined that the well is not flowing during a connection, kick in the riser pump and boost the riser while finishing making connections. 12) Short trips are not planned for this hole section. The drilling supervisor shall conduct a short trip if it is warranted. 13) Back ream each stand once prior to each connection. Rotate the drill pipe at 100 RPM while back reaming each stand to aid in hole cleaning. 14) At TD, pump a 100 bbl hi-vis sweep and circulate the hole clean. Take an MWD survey. Strap out of the hole. 15) Note: If significant overpull or swabbing is observed, go back to bottom and circulate the hole clean. 16) A wiper trip is not planned but if excessive drag is noticed a wiper trip shall be conducted. 17) Once at TD obtain a temperature from the MWD to verify that cement pilot tests are run at the proper temperature. If any short trips are made note the bottom hole temperature and time off bottom on morning report.
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18) Maintain the mud properties as per the table below: MW PV YP Gels Filtrate pH NaCl Cl 10.5 ALAP 20-35 5/15 <6 10.4 10.8 100k 140k 11.0 ALAP 20-35 5/15 <6 10.4 10.8 100k 140k

HTHP < 15 < 15

LGS % <6 <6

19) Ensure the MWD crew has rigged up enough cable to allow plug-in at the rotary table and rack back prior to downloading the MWD. Logging Operations: A. Once out of the hole rig up wire line. Two logging runs are planned, the MDT is contingent: Log #1 PEX/AIT/DSI/NGT/EMS from section TD up to the 9 shoe. Log #2 GR/VSI Log #3 GR/MDT (contingent)

B. Ensure the logging crew brought a strip over kit with their tools. Monitor the logging operations for indications of ledges, excessive line pulls, sticky hole sections, or fill on bottom. Do all Open Hole repeat sections as close to the casing shoe as possible. C. Boost the riser and pump through the choke and kill lines in between logging runs.

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D. A wiper trip during the logging is not planned. If one is made TIH with 8 Hole opener BHA: Item 8 Hole Opener Bit Sub bored for a float ARC Power Pulse MWD Stabilizer Crossover sub 6 Drill collar Crossover sub 9 - HWDP Jars 5 - HWDP OD ID Length Cum (inches) (inches) (feet) Length (feet) 8 1 1 6 2.81 3 4 6 6.89 5.11 25 26 6 4 30 4 279 30 155 29 55 61 65 95 99 378 408 563 Estimated air weight (lbs) 500 300 3,400 2,400 400 550 2,750 550 14,000 1,800 7,800 Connections 4 Reg Pin 4 Reg Box x 4 IF Box 4 IF Pin x 5 FH Box 5 FH Pin x 4 IF Box 4 IF 4 IF Pin x 4 IF Box 4 IF 4 IF Pin x 4 IF Box 4 IF 4 IF 4 IF

8 2 blades, 6 body 7 3 6 7 5 6 5 2.81 3 3 2 3

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8.7.8 8 Side Track Hole/7 Liner Section A more detailed program covering this operation will be sent to the rig once it is determined what is actually needed. Use the below as a guide line for now. A minimum of 12m (prefer 20m) of rat hole is needed between the bottom of the zone and the landing collar. Ensure the electric line crew brings out some RA pip tags.

1) After logging is completed rig down the electric line. Make up a cement head consisting of a TIW, side door pump-in sub, TIW, 10 pup joint. Lay this to the side. Make up the 5 cement stinger and TIH to set open hole cement plug(s). At least one open plug will be set above the hydrocarbon zone(s). 2) TIH to the top of the hydrocarbon zone. Make up the cement head and circulate one complete bottoms up. Mix and pump cement as needed to end up with a 30m cement plug. POOH 3 stands above the top of cement and reverse out 1.5 drill pipe volumes. This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 8 Open Hole Plug (BHST = F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Cement Sacks Gps ppg

3) POOH to 90m below the 9 shoe. Make up the cement head and circulate one drill pipe volume. Mix and pump cement as needed to bring the top of the cement up to 50m into the 9 casing. POOH 3 stands above the TOC and reverse out 1.5 drill pipe volumes. Drop a foam wiper ball and pump same down to the cement stinger. POOH.

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This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. Sidetrack Plug (BHST = F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Cement Sacks Gps ppg

4) Test BOPs and/or slip and cut drill line if either of these are close to be needed to be done.

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5) Make up the sidetrack BHA Item 8 bit A675M4570XP motor w/1.15 bend and 8 stabilizer sleeve 8 Stabilizer ARC Power Pulse MWD NMDC 12 - HWDP Jars 5 - HWDP Hydraulics Depth (ft) PV YP Mud Wt (ppg) Pump Psi MWD Psi Loss GPM OD ID Length Cum (inches) (inches) (feet) Length (feet) 8 1 1 6 5.5 27 28 Estimated air weight (lbs) 500 2,200 Connections 4 Reg Pin 4 Reg Box x 4 IF Box 4 IF 4 IF Pin x 5 FH Box 5 FH Pin x 4 IF Box 4 IF 4 IF 4 IF 4 IF Below Jars In 11 ppg mud

6 6 6 6 5 6 5 In 10,380 10 25 10.5 4000 560 580

2.5 2.81 5.11 2.81 3 2 3 Out 13,200 10 35 11 4000 560 525

6 25 26 30 372 30 155

34 59 85 115 487 517 672 Air Weight Buoyed Wt

400 3,000 2,400 2,500 18,600 1,800 7,800 29,600bs 24,600 lbs

6) While drilling out the cement adjust the mud weight as needed. If firm cement is not found with in 5m of the shoe consider picking up and waiting on cement. 7) Keep the rotary RPM at 30 50 while the stabilizers are inside the casing. 8) Continue drilling cement until kick off point is reached. Kick off at 3175m building @ 3/30m and at an azimuth of 325. Continue building until end of build at 3350m. Angle at this depth should be 14.2. Hold the angle @14.2 and azimuth @325 until 3450m and then start dropping back to vertical at 2/30m. The end of the drop should be at 3662m. The vertical section should be 74m. Maintain this vertical section until TD is reached.
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9) The core point(s) will be based upon depth. Once core point is reached circulate the hole clean and POOH for the core barrel. Rabbit the drill pipe with at least a 1 rabbit as the drop ball for the core barrel is 1. 10) Monitor off slips weight, torque after each slide, and PWD constantly to ensure the hole is being cleaned. Pump sweeps if necessary for hole cleaning. Refer to Appendix for an overview of PWD operations. 11) As soon as it has been determined that the well is not flowing during a connection kick in the riser pump and boost the riser while finishing making connections. 12) Short trips are not planned for this hole section. The drilling supervisor shall conduct a short trip if it is warranted. 13) Back ream each stand once prior to each connection. Rotate the drill pipe at 100 RPM while back reaming each stand to aid in hole cleaning. 14) Maintain the mud properties as per the table below: MW 10.5 11.0 PV ALAP ALAP YP 20-35 20-35 Gels 5/15 5/15 Filtrate <6 <6 pH 10.4 10.8 10.4 10.8 NaCl Cl 100k 140k 100k 140k HTHP LGS % < 15 <6 < 15 <6 MW 10.5 11.0

15) Ensure the MWD crew has rigged up enough cable to allow plug-in at the rotary table and rack back prior to downloading the MWD. 16) Make up the 18m Hydro-Lift core barrel assembly. The core barrel is 6 x 4 x 18m. An 8 x 4 ARC 412C3 core head is planned to be used. RIH with Core barrel, 23 joints of HWDP, jars, and 6 joints of HWDP to just above core point. 17) While making up the core barrel and TIH, condition the mud in 2 mud pits with 30 ppb Calcium Carbonate and 1 2 ppb Sodium Nitrate. The Calcium Carbonate will help prevent any intrusion into the core and the Sodium Nitrate will be used as a tracer to help determine if the water inside the core is from the formation or the drilling fluid.
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18) Once on depth with the core barrel space out to have a full 18m to work with i.e. do not make a connection while coring. Make up the drop ball sub (preloaded with a 1 ball in ball sub). Lightly tag bottom to ensure the core barrel is on depth and circulate one drill pipe volume to ensure the core barrel is clear and to get the treated fluid down to the core head. Take slow pump rates while circulating. 19) Once the treated fluid is near the core head, pick up and break a connection and drop the 1st ball (1 ball). This ball will seal off the inner core barrel. Circulate at 300 GPM until the ball seats (1 minute per 1,000). A 200 psi pressure increase will be noticed when the ball seats. 20) Start coring as per core engineers recommended WOB, RPM and SPM. These numbers should be in the range of 5 8K lbs WOB, 70 100 RPM, and 100 250 GPM. 21) If the ROP is steady then time the dropping of the 2nd ball to allow for the ball to land out just after coring the last foot of core. This ball (1) is dropped by opening the drop ball sub. This ball activates the Hydro-Lift core catcher so do not pick up off bottom until the Hydro-Lift core catcher is closed. Pick up 9m and tag bottom to confirm footage cut. If no fill, POOH. If there is fill then circulate the hole clean. Once the Hydro-Lift core catcher is closed circulation can be increased. 22) POOH following the schedule below: 45 seconds stand to stand up to 650m 3 minutes stand to stand from 650m to 300m 6 minutes stand to stand from 300m to 100m 12 minutes stand to stand from 100m to surface. 23) Prepare for the process of laying down the core to the extent possible while POOH. Once the core barrel is at the rotary table pull it out and break out the core head and split ring housing. Install a protector sub. Run the core barrel back in and secure it with a safety clamp. Break out the safety joint. PU on lift sub and clamp off the inner barrel. Drill a to hole in the 1st foot from the top of the inner barrel. This will vent any trapped gas. Proper PPE shall be worn while drilling this hole. The trapped gas should be minimal if any at all due to having the gas relief check valves but be prepared. Break out the inner barrel and lay down the safety joint. Place the core shuttle in the mouse hole. Place the lifting clamp on the inner barrel. Tie an air tugger to the lifting clamp and pull the 1st joint of the inner barrel out. Place the inner barrel clamp below the next connection and back out the connection using a 48 or 36 pipe wrench. Back out 6 turns and place the blade housing around the inner tube. Screw in the closing
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blade on the housing and then remove the housing. Turn the connection below the blade 3 more turns to finish separating the inner barrels. Screw on the thread protector until it is up against the blade. Remove the blade and tighten up the thread protector. Lower the inner barrel into the shuttle in the mouse hole after attaching the cable to the thread protector. Once in place pick up the shuttle and move to pipe rack area. Install the other shuttle in the mouse hole and repeat the same procedure for laying down the other inner barrel. 24) If it is planned to cut more cores rack back the core barrel. If this is the only core then lay down the core barrel. 25) Once coring is complete make up the previous drilling BHA and TIH. 26) Ream the cored hole using. There may be a possible core stub sticking up on bottom so lightly wash down the last meter to ensure the drill bit is not cored by the stub sticking up. 27) Drill ahead until the next core point or to TD. Ensure there is a minimum of 12m (prefer 20m) of rat hole between the bottom of the zone and the landing collar. Monitor the surveys to ensure we do not get back into the original hole. Once the next core point or TD is reached circulate the hole clean and POOH. While on bottom obtain torque reading at 20 RPM while circulating bottoms up. Also stop once the bit is inside the casing and obtain torque reading while rotating at 20 RPM, this data will be used when running the liner. A wiper trip is not planned but if excessive drag is noticed a wiper trip shall be conducted. 28) Once at TD obtain a temperature from the MWD to verify that cement pilot tests are run at the proper temperature. If any short trips are made note the bottom hole temperature and time off bottom on morning report. 29) Rig up electric line and log the well. It is planned to run 3 logs: Log #1 NGT/DSI/PEX/AIT Log #2 FMI/GR Log #3 CMR/GR

30) While logging rabbit the drill pipe to be used for running the liner with a 2 rabbit. 31) No wiper trips are planned between the logs. Monitor the logging operations for indications of ledges, excessive line pulls, sticky hole sections, or fill on bottom. Make a wiper trip with the BHA below if necessary to insure the log runs are successful.
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Item 8 Hole Opener Bit Sub bored for a float Stabilizer Power Pulse MWD Stabilizer Crossover sub 3 6 Drill collars Crossover sub 9 - HWDP Jars 5 - HWDP

OD ID Length Cum (inches) (inches) (feet) Length (feet) 8 1 1 6 2.81 3 6 26 6 4 90 4 279 30 155 4 10 36 42 46 136 140 419 449 604

Estimated air weight (lbs) 500 300 400 2,400 400 550 8,250 550 14,000 1,800 7,800

Connections 4 Reg Pin 4 Reg Box x 4 IF Box 4 IF 4 IF 4 IF Pin x 4 IF Box 4 IF Pin x 4 IF Box 4 IF 4 IF Pin x 4 IF Box 4 IF 4 IF 4 IF

8 2 blades, 6 body 6.89 5.11 8 2 blades, 6 body 7 3 6 7 5 6 5 2.81 3 3 2 3

7 Liner Operations: a) The wear bushing should be left in place as the minimum ID is 8.822 b) A Weatherford 7" X 9" Hydraulic Liner Hanger System consisting of a 10 long 7 ID PBR, C-TSP liner top packer and CTH hydraulic tandem cone liner hanger will be utilized. c) Plan to set the liner shoe one meter off TD and have a 150m overlap into the 9 casing. 7 Casing Weight Grade Pipe Yield Burst Collapse Joint ID BTC (ppf) (1,000 lbs) (psi) (psi) Strength (inches) threads (1,000 lbs) 0.362 wall 26 N-80 604 7240 5410 667 6.276
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d) Make up the cement head and either lay out or stand it back in the derrick. e) Install as many of the stop collars as possible while the casing is on the pipe rack. f) Rig up the floor to run the 7 casing. A casing swage is not required for this casing string. Make up 2 joints of casing between the float shoe and the float collar. Make up the landing collar on top of the joint above the float collar. Thread lock all connections from the top of the landing collar down. Once the float shoe is picked up ensure flow is obtained through it. Also once the float collar is made up ensure flow through it. g) If the hole has been acting good consider closing the lower blind shear rams and open up all valves on the Choke line while running the casing. This would reduce the surge on the formation and allow the well to be monitored. h) All casing must be strapped and drifted to 6. Ensure that no scale or other foreign items were left in the casing. Visually verify that float equipment is free of debris. i) Ensure the RA tag(s) is installed as per schematic at the end of this section. j) Continue running the 7 casing. Fill the casing with mud every joint as much as possible while lowering the joint. Once all of the casing is run completely fill the casing with mud while picking up the hanger assembly and installing the wiper plug system. Make up the casing connection. Obtain the weight of the liner. Make up top drive and circulate one casing capacity do not exceed 500 psi. Boost the riser while circulating the one casing capacity. k) Monitor returns while running each joint and adjust the running speed if returns are falling off. The pit gain should be 1.9 bbls (dry pipe) bbl (steel displacement) for every 12.2m joint of casing run. Once on drill pipe the gain should be 2 bbls gain for each stand of dry drill pipe run. l) While inside of the riser and the 9 casing fill the drill pipe after each 10 stands have been run. Limit the standpipe pressure to 800 psi each time circulation is gained. m) Open the blind shear rams after the first 10 stands of drill pipe have been run. Leave the choke, kill, and boost lines open to aid in mud flow-by. n) After 70 stands have been run the 7 liner shoe should be close to the 9 shoe. On this fill up break circulation and circulate for 15 minutes, limit pump pressure
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to 800 psi. Once the liner is in the open hole do not stop to fill up the drill pipe unless there is a need to wash down. o) Slack-off slowly while lowering the shoe joint and again when the hanger goes through the BOPs. p) If the hole is acting good tag bottom as lightly as possible, pick up and space out with cement head. Circulate bottoms up while reciprocating the liner 10m, limit the pump pressure to 1000 psi. Drop the 1.75 setting ball from the ball releaser in the cement head. Pump the ball down at 2-3 bpm with a maximum pressure of 700psi. The ball should take approximately 5 minutes per 300 meters to land on its seat. Watch the pressure gauge closely. When the ball lands, stop pumping and allow the pressure to stabilize. Slowly increase the pressure to 200 psi above that required to set the liner hanger and activate the hydraulic release. When the liner is hung off, slack off 30,000 lbs. Bleed off the pressure. Pick up to 20,000 lbs less than theoretical neutral DP weight. Increase the pressure to 2,500 psi to release the HNG running tool from the liner. Pick up to check that the tool is free. Pick up must not exceed half the distance from the by-pass slots to the junk bonnet (generally 1.5 meters). If the liner weight has been lost, set down 25,000 lbs of weight on the liner. Shear out the ball seat and note the pressure. Check for returns after shearing. q) Line up the cement unit, break circulation and test lines as required. r) Make sure the cement spacer (50 bbls of MSC) is mixed at 0.5 ppg heavier than the mud weight and is ready to go. s) Mix and pump cement as per table below. Slow the displacement down to 3 bpm 2 bbls before the dart reaches the wiper plug. Note the pressure required to release the wiper plug. Increase displacement rate back up to optimum rate after the wiper plug is released. Slow the displacement to 1 bpm on the last 10 bbls of displacement. Bump plugs with 500 1000 psi over final circulating pressure. Do not pump more than 2 bbls (half of shoe track shoe to landing collar) over calculated displacement. t) The volumes below should be confirmed prior to the job. Unit Volum (bbls/ft) 9 x 7 lap 0.026 8 OH x 7 0.023 7 Shoe Track 0.038 Above Liner Top 0.049 Section
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Volume Percent Total Cum. (bbls) Excess Volume (bbls Total (bbls 492 12.6 0 12.6 12.6 3000 69 15 79.4 92 85 3 0 3 95 100 4.9 0 4.9 100 Feet

Volume(ft3) Pe Section 71 446 18 28


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This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 7 Cement (BHST = F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Cement (TOC at 100 above liner top) Sacks Gps 15.8 ppg

u) Cement volumes should be calculated to bring the cement top back to 30m (100) above the liner top with 15% excess over the calculated open hole volume. Use the FMI 4 arm caliper if it is available for the volume to used over the open hole interval. v) Use the cement unit for displacing the cement to remove any doubts about the volume pumped. w) The hydrostatic of the full column (4075m 3000m) of 15.8 ppg cement = 12.3 ppg EMW. x) There is 875 psi pressure difference in the hydrostatic of the cement and seawater when the cement is in place. Monitor the displacement pump pressure as an indication of the amount of lift. y) Note returns on the morning report. z) Release the pressure and check the floats. If the floats fail then pump back in with the volume bled off and strip out of the hole to position the rotating packer actuator above the top of the PBR. Stay top-drived up if possible to prevent any flow back. aa) Pull the string back to position the rotating packer actuator above the top of the PBR. DO NOT EXCEED THE CALCULATED PICK UP DISTANCE BY MORE THAN 1 meter. Rotate the string slowly with a stable torque reading. The string will effectively shorten during this operation bringing the actuator dogs further above the PBR. Set the torque limit to the running tool releasing torque + 10%. Zero the Vernier on the weight indicator and slack off to set the TSP packer. Watch the weight indicator for positive indications. Do not slack off in excess of 50,000 lbs whilst rotating. If no shears are observed, release torque slowly and
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continue to slack off to set the packer. Maintain set down weight on liner top packer for a minimum of three minutes bb) Continued pick up of the running tools will shear the lock sleeve of the RSM pack-off bushing. An over-pull of approximately 4,000lbs is required. Providing the liner wiper plug has been bumped, pressure up the string to 500psi which will then bleed off when the pack-off bushing is pulled. As soon as the pressure bleeds off begin circulating slowly. It is advisable to pump approximately 10bbls of mud down the drill pipe whilst pulling the running tools above the liner top. This will ensure that the liner top will be as clean as possible. cc) Pull back sufficient pipe to place the end of the stinger approximately 3-5 meters above the top of the PBR. dd) Reverse circulate a minimum of 1.5 drill pipe volumes while rotating the pipe regularly to break up any cement between the pipe and the casing, monitoring the returns to ensure that there are no losses. Do not re-enter the liner top with the tail pipe assembly. ee) POOH and lay down the hanger running assembly. Conduct a Negative Test on the Liner Top: Make up BJs 1220 Mechanical set packer and TIH to 30m above the top of the liner. Ensure there is no casing collar at this depth. Set packer and test the backside to 1000 psi. Open up the bypass and displace the drill pipe with seawater. Bleed off the differential pressure. Monitor the pressure for 30 minutes. Reverse out the seawater and release the packer. POOH. While tripping displace the choke, kill and boost lines with seawater.

Liner Clean out: I. MU a 6 bit, 7 casing scraper and TIH picking up enough 3 drill pipe to get 15m above the liner top. PU a 9 scraper on top of the 3 drill pipe and continue TIH with 5 drill pipe. Continue TIH, once on bottom displace the hole to seawater. Once seawater returns are back to the surface short trip 1000m. Go back to bottom and circulate with seawater until returns clear up. POOH and lay down all of the drill string below the 9 scraper. II. Rig-up Schlumberger Electric line and run a cement bond log. Rig down Schlumberger. III. Make up the Weatherford cement retainer and TIH, prevent any right hand rotation. Consider turning the drill pipe to the left one rotation every 15 stands as
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a precautionary step. Plan to set the cement retainer 30m above the top of the liner. Verify this depth with the casing tally to make sure the cement retainer is not sitting in a casing collar. To set the cement retainer TIH to the desired setting depth, PU 2 feet and rotate the drill pipe to the right with 10 turns at the cement retainer. Slack off 2 feet and then pull 40,000 lbs tension (50,000 lbs maximum) and hold this tension for 5 minutes. Slack off 40,000 lbs onto the tool and then pull 40,000 lbs tension again. Test the back side to 1000 psi to verify the cement retainer is fully set. IV. Release the setting tool by pulling 500lbs tension at the tool and rotating the drill pipe 10 turns to the right. PU to verify the running tool is free from the retainer. If the running tool is snapped back into the retainer then a 5 8,000 lb snap should be noticed when the running tool is snapped out of the retainer. Mix and Pump 20 ft of cement (15m plug) and dump same on top of the cement retainer. POOH one stand and reverse out 1.5 drill pipe volumes. This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 7 Liner Top Plug (BHST = F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Cement (15m plug above liner top) Sacks Gps ppg

V. POOH to 60m below the wellhead. Mix and spot 20 ft of cement (15m plug). POOH one stand and reverse out 1.5 drill pipe volumes. POOH. This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. Surface Cement Plug Cement (BHST = F) (60m 45m below the mudline) Recipe Number of Sacks Sacks Yield Mix water type Mix water amount Gps Weight of Slurry ppg
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VI. Rig-up to unlatch and pull the BOPs. VII. Have the ROV install the trash cap and conduct a seafloor survey. VIII. Plan to leave the 9 wear bushing in place. IX. Backload all equipment and demob to Singapore. X. While demobing to Singapore lay down all of the tubulars out of the derrick.

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8.7.9 Abandonment A more detailed program covering this operation will be sent to the rig once it is determined what is actually needed. Use the below as a guide line for now. 1) After logging is completed rig down the electric line. Make up a cement head consisting of a TIW, side door pump-in sub, TIW, 10 Pup joint. Lay this to the side. 2) If there are any hydrocarbon bearing sands make up the 5 cement stinger and TIH to set open hole cement plug(s). At least one open plug will be set above the hydrocarbon zone(s). 3) TIH to the top of the hydrocarbon zone. Make up the cement head and circulate one complete bottoms up. Mix and pump cement as needed to end up with a 30m cement plug. POOH 3 stands above the top of cement and reverse out 1.5 drill pipe volumes. 4) This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 8 Open Hole Plug (BHST = F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Cement Sacks Gps Ppg

5) POOH. Lay down the cement stinger. 6) Make up the Weatherford cement retainer and TIH, prevent any right hand rotation. Consider turning the drill pipe to the left one rotation every 15 stands as a precautionary step. Plan to set the cement retainer 15m above the top of the 9 casing shoe. Verify this depth with the casing tally to make sure the cement retainer is not sitting in a casing collar. To set the cement retainer TIH to the desired setting depth, PU 2 feet and rotate the drill pipe to the right with 10 turns at the cement retainer. Slack off 2 feet and then pull 40,000 lbs tension (50,000 lbs maximum) and hold this tension for 5 minutes. Slack off 40,000 lbs onto the tool and then pull 40,000 lbs tension again. Test the back side to 1000 psi to verify the cement retainer is fully set.
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7) Release the setting tool by pulling 500 lbs tension at the tool and rotating the drill pipe 10 turns to the right. PU to verify the running tool is free from the retainer. Snap back into the retainer and then snap back out. A 5,000 8,000 lb snap should be noticed when the running tool is snapped out of the retainer. Break circulation. Mix and Pump 20 ft of cement (15m plug) and dump same on top of the cement retainer. POOH one stand and reverse out 1.5 drill pipe volumes. 8) This cement design will be finalized once the lab arrives in China and tests are run with the actual cement to be delivered to the rig. 9 Shoe Plug (BHST = F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Cement Sacks Gps Ppg

9) POOH to 60m below the wellhead. Mix and spot 20 ft of cement (15m plug). POOH one stand and reverse out 1.5 drill pipe volumes. POOH. If approval to leave the wellhead in place has been received displace the casing, riser, and lines with seawater prior to POOH. 10) This cement design may change when lab tests are run with the actual cement delivered to the rig. Surface Cement Plug (BHST = F) Recipe Number of Sacks Yield Mix water type Mix water amount Weight of Slurry Cement (60m 45m below the mudline) Sacks

Gps ppg

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11) If approvals are received the wellhead will be left in place, contact the Husky Drilling Superintendent to verify approval. If no approvals are received the 9, 13, 20 and 36 will be cut and pulled. 12) Rig-up to unlatch and pull the BOPs. 13) Have the ROV install the trash cap and conduct a seafloor survey. 14) Plan to leave the 9 wear bushing in place. 15) Backload all equipment and demob to Singapore. 16) While demobing to Singapore lay down all of the tubulars out of the derrick.

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8.7.10 Lost Circulation To help prevent losses use good drilling practices at all times: Calculate surge pressures before each trip. Consider closing the blind shear rams once the drill string is above the BOPs Boost the riser as much as possible at all times and while out of the hole to warm the mud at the seafloor. Ensure the mud properties (PV, YP, Gels) are in line with the programmed properties. Rotate the drill string while back reaming each stand. Monitor the PWD the entire time. Have the MWD engineer set the limits such that an alarm goes off before reaching the upper limit. Have the MWD engineer call the driller to verify the driller is aware that the upper limit is being approached. The driller should come off bottom and circulate until the PWD has dropped to an acceptable level. Set the upper limit a few points below the last shoe test EMW.

If losses occur while drilling, stop the down hole pump(s) (consider keeping the riser pump on line to help clean up the hole), pick up off bottom and place a tool joint at the rotary table. Keep the drill string moving at a dead slow rate to prevent the drill string from becoming stuck. Determine the loss rate by filling up the backside via the trip tank. Use mud and keep it in sight. If unable to fill the hole with mud then switch to seawater. Keep track of the amount and type of fluid being added to the back side. It may be necessary to POOH to the casing shoe if it is determined that it will take some time to prepare a pill In the 17 Hole Section: If Losses are 10 50 bbl/hr: Pump a 100 bbl pill consisting of: 10 ppb Mil Seal (M), 8 ppb Mica (F), 7 ppb Mica (F) 10 ppb CaCO3 (M) in prehydrated gel. If Losses are 50 80 bbl/hr: Pump a 100 bbl pill consisting of: 20 ppb Mil Seal (M), 12 ppb (Mica (F), 8 ppb Mica (M), 20 ppb CaCO3(M) in prehydrated gel.
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If Losses are >80 bbl/hr: Pump a 100 bbl pill consisting of: 20 ppb Mil Seal (M), 12 ppb Mica (F), 8 ppb Mica (M), 20 ppb (CaCO3 (M), 20 ppb Soluflake (M) in prehydrated gel. In the 12 and 8 Hole Sections: If Losses are 10 50 bbl/hr: Pump a 100 bbl pill consisting of: 10 ppb CaCO3 (C), 10 ppb CaCO3 (M), 10 ppb CaCO3 (F), 10 ppb Soluflake (M), 15 ppb Soluflake (F) If Losses are 50 80 bbl/hr: Pump a 100 bbl pill consisting of: 10 ppb CaCO3 (C), 10 ppb CaCO3 (M), 10 ppb CaCO3 (F), 12 ppb Soluflake (M), 18 ppb Soluflake (F) If Losses are >80 bbl/hr: Pump a 100 bbl pill consisting of: 5 ppb CaCO3 (C), 10 ppb CaCO3 (M), 15 ppb CaCO3 (F), 12 ppb Soluflake (M), 18 ppb Soluflake (F), 5 ppb Check Loss (F) For severe losses a Solu-Squeeze pill will be used. Solu-squeeze is a high fluid loss, high solids lost circulation squeeze technology product designed for moderate to severe lost circulation. It is 91% acid soluble. It is mixed in the rig pit(s) Enough material has been ordered to mix three 75 bbls pills.
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The typical procedure will be to mix up 50 75 bbls of the Solu-Squeeze (enough pill to cover 150m (500)) and to spot it as a balanced pill. Pick up above the top of the pill or preferably to the casing shoe, close the annular and apply squeeze pressure of 50-100 psi. If the pressure holds increase the squeeze pressure in 25 psi increments until 300 400 psi has been achieved. Hold this pressure for 6 8 hours. Bled off the pressure and stage the circulation rate up to the previous drilling rate while monitoring returns. TIH and break circulation 2 stands above the top of the pill. Wash and ream down to the pill, the bit should take weight at the top of the pill. Continue washing and reaming through the interval. Monitor returns as the pump rate is staged up to the drilling rate.

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8.7.11 Equipment / Materials Details

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13 3/8 PDC Subsea Cement Anti-Rotation Plug Assembly


Anti-rotation and Latch Down Casing Weight Range:48.00-72.00 lb/ft. Core Material: Glass filled phenolic, 7000 psi tensile strength; 35,000 psi compressive strength Metal Content: Aluminum shear pins and launch ball extrusion ring, 5 oz. Fin Material: Nitrile, 655 Durometer, Shore A Fin Color: Black, top; Red, bottom Temp. Rating: 275 F (135 C) Pressure Rating: 4500 psi (300 Bar) Launch Ball Material: 2.5 s.g. Nitrile Anti-rotation Adapter Material: Glass Filled Epoxy, 35,000 psi tensile strength Dart Core Material: Glass Filled Epoxy, 35,000 psi tensile strength Bottom Plug launch pressure: 130 psi ( 9 Bar) Ball extrusion pressure: 800-1200 psi (53-80 Bar) Top plug launch pressure: 18001900 psi (120-126 Bar) Requires Davis-Lynch type 700 LAP float equipment

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9 5/8 PDC Subsea Anti-Rotation Cement Plug Assembly


Anti-rotation and Latch Down Casing Weight Range:29.3-53.5 lb/ft Core Material: Glass filled phenolic, 7000 psi tensile strength; 35,000 psi compressive strength Metal Content: Aluminum shear pins and launch ball extrusion ring, 4 oz. Fin Material: Nitrile, 655 Durometer, Shore A Fin Color: Black, top; Red, bottom Temp. Rating: 275 F (135 C) Pressure Rating: 8500 psi (560 Bar) Launch Ball Material: 2.5 s.g. Nitrile Anti-Rotation Adapter Material: Glass Filled Epoxy, 35,000 psi tensile strength Dart Core Material: Glass Filled Epoxy, 35,000 psi tensile strength Bottom Plug launch pressure: 160 psi ( 11 Bar) Ball extrusion pressure: 800-1200 psi (53-80 Bar) Top plug launch pressure: 18001900 psi (120-126 Bar) Requires Davis-Lynch type 700 LAP float equipment

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8.7.12 Personal Responsibilities All personal are expected to follow all of Transocean polices at all times. Husky Drilling Supervisors Any change to the drilling program must be authorized by the drilling superintendent. There will be a four man Husky drilling team on the rig at all times of operations. It is expected that all operations will be overseen by the drilling supervisors. All equipment will be inspected by the drilling supervisors as soon as possible once it has been offloaded. A detailed rental tool list will be maintained and updated after each boat arrival and departure. The rental tool list should be emailed to the drilling superintendent on a weekly basis. A look ahead will be updated and forwarded to the drilling superintendent along with the daily drilling report on a daily basis. This outlook should cover at least 3 days and preferably 5 days ahead of the current operation. The look ahead should have the planned personal and equipment movements to and from the rig. The drilling supervisors are expected to develop a plan of attack on a daily basis or over a particular operation and distribute it to each rig site member that will be involved in the work. Input is expected from each member. The drilling supervisors are expected to be on the rig floor any time there is any hole problem, are to personally inspect each bit after it is pulled, are expected to personally witness BOP test, casing test, and shoe test, are expected to personally witness verification of the float equipment, are expected to be on the drill floor when casing enters the open hole, are expected to be present on the cement unit any time cement is being mixed and pumped, is expected to personally witness the launching of balls and darts during the cementing operations. Day Drilling Supervisor: Responsible for all operations Responsible for people and equipment movements Responsible for daily plans Responsible for a detailed and accurate daily report Night Drilling Supervisor: Responsible to support in all areas as above
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Is expected to consult with the Day Drilling Supervisor if anything changes during the night. Chinese Wellsite Drilling Engineer(s)/Supervisor(s): Expected to aid Day and Night Drilling Supervisors Will not be allowed to give any orders or directives Are expected to ask questions about each operation and to learn as much as possible. Husky Wellsite G&G Personal The wellsite Geologist(s) are expected to monitor the mudloggers and MWD/LWD personal to ensure that the necessary data is being gathered as per the Geological Well Program. He is expected to update the drilling supervisor with formation changes, correlations, formation tops, and ensure that all reports generated by the mudloggers and/or MWD/LWD personal are correct and accurate. He is expected to update the Calgary based Geologists on a daily or as needed basis. He is expected to coordinate with the drilling supervisor to ensure the proper wirline logging equipment and personal are ordered out in a timely fashion. He is expected to ensure the proper logging tools are being run in the proper order and that they are being run at the proper speeds. He is to ensure the proper heading and scales are used on all logs. Service Personal All Service personal are expected to give input into the daily or operation plan of attack. All Service personal are expected to inspect their tools as soon as possible upon arrival to the rig. All Service personal are expected to notify the day supervisor of any discrepancies or damage that is noticed on their equipment. All Service personal are expected to attend at least one pre-tour meeting per day they are on the rig.
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All Service personal are expected to take a pro-active role in all meetings. Mudloggers and MWD/LWD personal are expected to monitor the drilling parameters and set alarms such that small changes in the parameters can be noticed. Once an alarm is activated they are expected to notify the drilling supervisor and driller on tour immediately. All service personal are expected to give a detailed list of all equipment to be shipped back to the dock to the drilling supervisor. The service personal are also expected to coordinate with the deck foreman / crane operator so that these men know where and what is to be shipped back. Daily Phone Calls There will be a daily morning call between the Husky China Shekou office, Calgary Operations Geologist and the drilling rig. It is expected that all personal that will have a role in the current or near future operation will be in attendance for this call. This call will be conducted daily at 0730 hours. The drilling supervisors are to either email or phone in an afternoon report between the hours of 1500 and 1600 hours to the drilling superintendent.

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Husky Contact Numbers:


Name Dempsey Stover Edwin Macdonald Henry Pan Position Drilling Superintendent Calgary Operations Geologist Logistic and Warehouse Supervisor Helicopter Coordinator China G&G Manager Project/Operations Manager China General Manager Drilling Engineer Drilling Engineer Drilling Engineer Procurement Supervisor Procurement & Logistic coordinator Operations Secretary Drilling Secretary Drilling Manager International Drilling Exploration Manager 403-298-7215 86-755-26812657 ext 19 86-755-26812657 ext 16 86-10-8518-2277 ext 16 86-10-8518-2277 ext 20 86-10-8518-2277 ext 35 86-10-8518-2277 ext 36 86-755-26812657 ext 30 86-755-26812657 ext 22 86-755-26812657 ext 23 86-755-26812657 ext 11 403-750-1507 86-13823116537 86-13823116506 86-13910091901 86-13480685687 86-13530819088 86-13554851118 86-13560778250 86-13826507750 86-13590128129 86-13076967900 403-542-1541 Office Number 86-755-26812657 ext 18 403-298-7102 86-755-26812657 ext 17 Home number 86-755-26887137 Mobile Number 86-13923709766 403-512-5050 86-13602513441

Fan Gui Gao Dehai Fang Weihua Wing On Chu Cao Jun Dai Hang Chen Guoqiang GC Xia Tristan Zhu Huang Ting Yang Hui Al Pate Bill Ellsworth Dave Johnson

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Bruce Campbell

Backup Drilling Superintendent/HSE Manager

86-10-8518-2277 ext 12

86-13066927605

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Figure 25. Drilling Time vs Depth Graph

Figure 26. Drilling Cost vs Depth Graph


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Depth 0 1 1495 1565 2080 2080 2385 2385 3160 3160 4000 4000 3160 3300 3700 3718 3900 3900 3900 3900 3900

Cost 0 4,000 4,600 5,800 7,300 8,500 9,500 10,300 12,000 13,890 16,590 17,697 18,527 19,156 19,659 20,162 20,489 21,394 22,400 25,509 27,009 Mob RU 36" Drill 26" 20" casing, cement, Run BOPs Drill 17.5" Hole 13-3/8" casing & Cement Drill 12-1/4" Hole Log, 9-5/8" casing, cement Drill 8.5" Hole Log 22,497 Drill, Log, P&A, Demob Sidetrack Core #1 Drill Core #2 Drill Log Run Liner 27,009 Drill, log, sidetrack, core, Run Liner, T&A, Demob P&A Demob

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8.7.13 Miscellaneous Forms SPILL REPORT FORM


Drill Actual Spill
Reporting Party: Name: Position: Phone: Company: Date/Time Incident Occurred: TIME AND LOCATION Area/Block: Facility: Latitude: Nearest City & Distance: Description of Incident: Spill Report #: _________________________ Suspected Responsible Party: Company: Phone:

RESPONSIBLE PARTY

Date/Time Incident Reported to QI/IC:

Longitude:

MATERIALS DISCHARGED

Quantity: Material: Appearanc e: Length: Air Temp: F ft Visibility:

bbls / gals API Gravity:

ft / mi

Width: Water Temp: mi @ @ Seas : F

ft / mi

WEATHER

Ceiling: Wind Direction/Velocity: From Current Direction/Velocity

ft kts / mph kts / mph

To

Actions Taken to Correct/Mitigate Incident:

RESPONSE
ACTION Injuries: Evacuated: Damage: Fatalities:

ADDITIONAL INFORMATION

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Husky Energy
NEW (# of attachments)
One AREA One Business Unit: Facility/Plant Event Date (YYYY-MM-DD) Reported By: Prepared By: Last Name: Last Name: Actual Severity

Incident Investigation Report


Faxed to: Incident #

Upstream

Modified Report # Major Serious Midstream Downstream


Department: SEQ LSD Event Time First Name: First Name: SEC

Minor Near Miss Canadian Frontier/International


Operational Mode TWP RGE W M

Others

LOCATION TIME

24 HR CLOCK

Report Date (YYYY-MM-DD) Phone Phone Phone

EMPLOYEE or CONTRACTOR

Husky
Occupation

Contractor

Contractor Name/Address Last Name Experience Years First Name Months

Employee Number

Phone

At Task At Location

DESCRIPTION

State clearly the facts and sequence of the event:

Coordinator Sign-Off:
Potential Severity

Name:

Date:

(YYYY-MM-DD)

1. Major 2. Serious 3. Minor

Potential Frequency:

Separate Sheet attached 1. Frequent 2. Occasional 3. Minor

Immediate Causes of the Event (What Triggered the Event) Substandard Act(s) Substandard Condition(s) Basic Causes of the Event (What Allowed the Trigger To Exist) Personal Factors: Job Factors: Management Control Needs (check all required):

Leadership & Administration Management Leadership Planned Inspection and Maintenance Task Analysis & Procedure Accident/Incident Investigation System Task Observation Others (specify)
Root Cause:

Emergency Preparedness Rules and Permits Knowledge & Skill Training PPE Enforcement or Needs Health and Hygiene Program Evaluation System

Engineering Communications General Promotion Hiring and Placement Material and Service Management Off-The-Job-Safety

ANALYSIS

Separate Sheet attached


RECOMMENDATIONS

Recommendations: (Determined by Review Committee)

Action Items:

Action By: Last Name First Name

Target Completion (YYYY-MM-DD)

Date Completed (YYYY-MM-DD)

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SPILL REPORT FORM


Spill Report #

Drill

Actual Spill

For Spills Involving a Load out or Vessel Collision, Obtain from the Boat Captain:
Name of Captain: Address of Captain: Phone # of Captain: Call Sign: Remarks: Agent: Card Number: Flag: Vessel Name:

Notifications Within the Company:


Reported by Reported to Reported to (position) Time Date

Notifications to Agencies:
Reported by (Name) Reported to (Name) Agency Incident # Time Date

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8.7.14 General Data

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Casing Specifications PARAMATER Weight (ppf) Wall thickness (inch) Grade Connection Pipe ID (inch) Drift (inch) Burst (psi) Collapse (psi) Tensile (kips) Connection OD (inch) Min MU Torque (ft-lb) Opt MU Torque (ft-lb) Max MU Torque (ft-lb) Capacity (bbl/ft) Displacement (bbl/ft) Casing Length (m/feet) Casing Wt (lbs) Landing String Land String length (ft) Land String Wt (in air) Total wt of casing & DP (in air) Land String Rating (premium) Land String Safety Factor (in air) 20 166.4 0.812 X-56 S-60 MT 18.376 18.25 3980 2510 1450 21 15,000 20,000 50,000 0.328 0.061 585/1920 324,277 5, 19.5 ppf 4904 95,628 419,905 560,800 1.33 13 68 0.48 N-80 Buttress 12.415 12.259 4930 2260 1556 14 NA To the diamond NA 0.1497 0.0241 890/2919 198,506 5, 19.5 ppf 4904 95,628 198,506 560,800 2.82 9 47 0.472 N-80 Buttress 8.681 8.525 6,870 4,760 1086 10 NA To the diamond NA 0.0732 0.0168 1665/5461 256,676 5, 19.5 ppf 4904 95,628 256,676 560,800 2.18 7 26 0.362 N-80 Buttress 6.276 6.151 7240 5410 604 7.656 NA To the diamond NA 0.038 0.009 TBD TBD 5, 19.5 ppf TBD TBD TBD TBD TBD

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Drill Pipe Specifications PARAMATER Weight (ppf) Weight (ppf w/connection) Grade Connection Pipe ID (inch) Connection OD (inch) Connection ID (inch) Drift (inch) Burst (psi) Collapse (psi) Tensile (lbs) Torsional Strength (ft-lbs) Min MU Torque (ft-lbs) Max MU Torque (ft-lbs) Capacity (bbl/ft) Displacement (bbl/ft) 5 DP 19.5 22.79 S-135 4.5 IF (NC 50) 4.276 6.625 3.25 3.125 16,105 (Premium) 10,029 (Premium) 560,800 (Premium) 51,700 (Premium) 25,900 26,800 0.0173 0.0083 5 HWDP 49 50.38 4.5 IF (NC 50) 3 6.625 3 2.688 19,250 (New) 17,600 (New) 3 DP 13.3 14.49 G-105 3.5 IF (NC 38) 2.764 5 2-7/16 2.313 19,320 (New) 19,760 (New)

691,200 (New) 380,190 (New) 56,500 (New) 28,900 30,000 0.0087 0.0184 22,213 (New) 9,100 11,107 0.0074 0.0045

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Figure 27. Offset Well Designs (1)


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BaiYun 7-1-1 140 km WSW Spud: April, 1987 Depth (m) Block 42/7 100 WD = 499m 200 300 400 500 600 30" @ 577m 700 seawater 800 20" @ 803m 900 LOT = 11.6 1000 1100 1200 1300 1400 1500 1600 1700 MW = 9.2 ppg 1800 13-3/8" @ 1804m 1900 FIT = 12.1 2000 2100 Gas 20 units up to 2200 660 units 2300 MW = 9 ppg 2400 9-5/8" @ 2401m 2500 LOT = 11.2 2600 2700 2800 2900 3000 3100 3200 3300 3400 MW = 9 ppg 3500 TD = 3527m 3600 3700 3800 3900 4000 4100 4200 4300 4400 4500 4600 4700 4800 4900 5000 5100

Pan Yu 30-1-1 80 km W Spud: April, 2002 Block 28/27 WD = 194m 30" @ 264m 13-3/8" @ 371m

Liu Hua 19-4-1 60 km NW Spud: March, 1986 Block 29/19 WD = 208m 30" @ 283m 20" @ 431m LOT = 11.15

PanYu 33-1-1 Spud: October, 1984 Block 28/27 WD = 215m 30" @ 287m

LW 3-1-1

Block 29/26 WD = 1481m

20" @ 744m MW = 9.0 ppg 13-3/8" @ 1000m LOT = 13.7 MW = 9.6 ppg MW = 9.8 ppg 9-5/8" @ 1540m 36" @ 1565m

20" @ 2080m MW = 10.0 ppg 13-3/8" @ 2299m LOT = 11.6

13-3/8" @ 2385m

MW = 9.8 ppg TD = 3190m TVD, 3478m MD

MW = 9.0 ppg TD = 3086m 9-5/8" @ 3160m

MW = 9.7 ppg 9-5/8" @ 3792m LOT = 13.9 TD = 4071m MW = 9.0 ppg

MW = 9.3 ppg TD = 5094m

Figure 28. Offset Well Design (2)

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Rental Tools: 36 Casing Jetting/ 26 open hole: 5 - Spacer Subs - 6 Reg connections, 1 @ 2, 1 @ 3, 1 @ 4, 1 @ 5, 1 @ 6 3 - Crossover Subs three w/6 Reg Pin x 4 IF Box 3 - Stabilizers three 26 hole size with 6 connections 2 - Bit Subs two with 7 Reg Box x 6 Reg Box. Bored for a float 2 - Ported flapper type Float valve for above bit sub. 2 - Jars two 6 OD drilling jars with 4 IF connections 150 Ton split bowl complete with 8 drill collar hand slips and 5 drill pipe hand slips 2 crossover subs two 6 FH Box x 6 Reg Pin (Schlumberger MWD) 2 crossover subs two 6 FH Pin x 6 Reg Box (Schlumberger MWD)

17 Hole Size: 3 - Stabilizers three 17 hole size with 6 connections Fishing Package: 7 Oil jar, 7 Accelerator jar, 7 Bumper jar, 11 over shot, 11 over shot extension, 11 wall hook guide, 15 oversized guide for overshot, 17 Cone-buster junk mill, 9 boot basket, 11 reverse circulation junk basket, and assorted grapples. Two - 8 NMDC with 6 Reg connections

12 Hole Size: 2 - Bit Subs two with 6 Reg Box x Box. Bored for a float. 3 - Stabilizers three 12 hole size with 6 connections 12 Cone-buster junk mill 12 Hole Opener with strap welded bull nose and 6 Reg Pin up

8 Hole Size: 2 - Bit Subs two 4 Reg x 4 IF Box x Box. Bored for float. 2 - Ported flapper type Float valve for above bit sub 3 - Stabilizers three 8 hole size with 4 IF connections 3 - Crossover subs three with 4 IF Pin x 4 IF Box 3 - Crossover subs three with 4 IF Box x 4 IF Pin 8 Hole Opener with strap welded bull nose and 4 Reg Pin up. Two - 6 NMDC with 4 IF connections
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

Fishing Package: 6 Oil jar, 6 Accelerator jar, 6 Bumper jar, (all jars with 4 IF connections) 8 over shot, 8 over shot extension, 8 wall hook guide, 8 Cone-buster junk mill, 6 boot basket, 7 reverse circulation junk basket, and assorted grapples. 2 crossover subs two 5 FH Pin x 4 IF Box (Schlumberger MWD) 2 crossover subs two 5 FH Box x 4 IF Pin (Schlumberger MWD)

ALL TOOLS TO BE INSPECTED TO DS-1 CATEGORY 4 BEFORE GOING TO RIG. INSPECTION PAPERS TO BE INCLUDED WITH TOOLS. Miscellaneous: 7 Liner Hanger for 7 26#, N-80, BTC casing. Casing Patch for 13 68#, N-80 casing Casing Patch for 9 47#, N-80 casing Whipstock for 9 47#, N-80 casing complete with mills

Well Abandonment package to cut and pull casing: For 9 47# N-80 casing For 13 68#, N-80 casing For 20 166# (0.812 wall) casing For 36 (1 wall) casing

December, 2005

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

APPENDIX 1
LWD Logging Programme 1.1 LWD - 17 Hole

Determination of Potential Zones of Interest Logging Contractor: Casing: Bit Size: Total Depth: Mud system: Schlumberger 20 @ 2057 m SS, (2080 m RT) 17 2362 m SS, (2385 m RT) (Estimated 17 TD - ITD1) WBM

GR/ARC Gamma Ray Phase Resistivity Attenuation Resistivity Both 400 kHz and 2 mHz resistivities for each five Phase and five Attenuation measurements presented with final data. Vertical Scale: Horizontal Scales: Resistivities: Gamma Ray: Rate of Penetration: 1:200 0.2-20 ohm-m log 0-150 API Best scale

1.2

LWD - 12 Hole

Determination of Potential Zones of Interest Logging Contractor: Intermediate Casing Bit Size: Total Depth: Mud system:
December, 2005

Schlumberger 13 3/8 @ 2362 m SS, (2385 m RT) 12 3137 m SS, (3160 m RT) (12 Hole TD ITD2) WBM
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

GR/ARC Gamma Ray Phase Resistivity Attenuation Resistivity Both 400 kHz and 2 mHz resistivities for each five Phase and five Attenuation measurements presented with final data. Vertical Scale: 1:200 Horizontal Scales: Resistivities: Gamma Ray: Rate of Penetration:

0.2-20 ohm-m log 0-150 API Best scale

1.3

LWD - 8 Pilot Hole

Determination of Potential Zones of Interest Logging Contractor: Intermediate Casing Bitsize: Total Depth: Mud system: Schlumberger 9 5/8 @ 3137 m SS, (3160 m RT) 8 4071 m SS, (4094 m RT) (Est. Pilot Hole TD - PTD) WBM

GR/ARC Gamma Ray Phase Resistivity Attenuation Resistivity Both 400 kHz and 2 mHz resistivities for each five Phase and five Attenuation measurements presented with final data. Vertical Scale: Horizontal Scales: Resistivities: Gamma Ray: Rate of Penetration:
December, 2005

1:200 0.2-20 ohm-m log 0-150 API Best scale


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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

1.4

LWD - 8 SideTrack Hole

Determination of Potential Zones of Interest Logging Contractor: Intermediate Casing Bitsize: Total Depth: Mud system: Schlumberger 9 5/8 @ 3137 m SS, (3160 m RT) 8 TBD (Estimated Sidetrack TD - STD) WBM

GR/ARC Gamma Ray Phase Resistivity Attenuation Resistivity Both 400 kHz and 2 mHz resistivities for each five Phase and five Attenuation measurements presented with final data. Vertical Scale: Horizontal Scales: Resistivities: Gamma Ray: Rate of Penetration: 1:200 0.2-20 ohm-m log 0-150 API Best scale

Operation Notes: 1. Data to be transmitted to Calgary in real time as determined by Calgary office. 2. Non real time data transmitted to Calgary at least twice daily.

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

3. Five (5) copies of field prints are required; one for Husky Oil China Ltd in Shekou, one for Husky Oil Operations Ltd in Calgary, two for CNOOC, and one for Chinas Regulatory Agency. Nine (9) copies of final prints are required; two for Husky Oil China Ltd in Beijing, two for Husky Oil Operations in Calgary, four for CNOOC, and one for Chinas Regulatory Agency.

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

APPENDIX 2
Detailed Logging Programme 2.1 Run 1 - Logging Run at Intermediate Casing - ITD2 13 3/8 @ 2362 m SS, (2385 m RT)- ITD1 12 3137 m SS, (3160 m RT) (Est. 12 TD ITD2) WBM

Intermediate Casing: Bit size: Intermediate Depth: Mud system:

Run 1- Descent 1. GR/DSI/EMS/PEX w/AIT (or HRLA): Gamma Ray, Dipole Sonic Imager, Environmental Measurement Sonde, Litho Density, Compensated Neutron, and Array Induction. AIT-GR: ITD2 to ITD1 Vertical Scale: Horizontal Scales: Resistivities: Resistivities: Resistivities: GR: ITD2 to ITD1 Vertical Scale: Horizontal Scales: GR: Calipers: RHOZ/RHO8: PEFZ/PEF8:
December, 2005

1:200 and 1:500 0.2-2000 ohm-m Log 0-50 ohm-m Lin 1000-0 m-mhos Lin 0-150 API (Lower scale) (Upper Scale) (Upper Scale) (Both scales)

TLD-HGNS-GR-CAL: 1:200 and 1:500 0-150 API 6- 16 2 3 g/cc 0-10 Track 2 (Both scales) (Both scales) (Upper scale) (Both scales)
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

HDRA:

-0.05 to 0.45 g/cc Track 2 (Both scales) (Lower scale) Rho matrix 2.71 g/cc

DPHZ-NPOR/HNPO: 0.45 to 0.15 LS Porosity Scales - Rho fluid 1 g/cc NOTE: Limestone matrix

Run GR-CNL in cased hole from ITD2 to 36 casing shoe on

GR-DSI-CAL: ITD2 to ITD1 Vertical Scale: Horizontal Scales: GR: Calipers: 0-150 API 6- 16 (Both scales) (Both scales) (Both scales) 1:200 and 1:500

DT compressional: 140 - 40 usec/ft (Both scales) Note:

DT shear (P&S and dipole mode): 200-100usec/ft (best scale)

1. Make a complete Hi-Res pass with gamma ray, resistivity, density, and neutron data over all potential pay sands. Hi-Res is on a scale of 1:120 and AIT on one foot spacing. 2. Include in digital data, porosity on Sandstone (2.65 g/cc). and Limestone Matrix (2.71 g/cc) and two/four foot AIT spacings. 3. Simultaneously acquire DT compressional and DT shear data for wellbore stability analysis and seismic applications (including AVO analysis) from 2385m to TD (Dipole Mode and P&S). 4. Record and display casing signal in pipe. 5. Prepare tools accordingly for hole size of 12 .
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

2.2

Run 1 - Descent #2:- GR/VSI

Gamma ray with Versatile Seismic Imager. - A four level VSI configuration with a maximum 20 m spacer between levels is to be used. - A gamma ray tool will be run for depth control. - Levels from TD to 36 casing shoe will be utilized. - Standard presentation and scales. The airgun source array system is to be determined. The airgun hook-up configuration is tentatively set as follows: Surface source for checkshot or vertical VSP to be a constant offset from the drill floor. The source should be located 6m below sea surface to achieve frequencies up to 100 Hz. Air supply to be provided from air compressors and backed up with rig air. Interval to be logged is ITD2 to 36 casing shoe. Final levels to be determined by Calgary office at the time of logging. At each station, five good airgun pops are to be recorded.

Decisions regarding final displays, tape output etc. will be stated later. Number of reports will be 7 (3 for Husky, and 4 for CNOOC). Number of tapes will be 2 (one for each group).

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

2.3

Run 2 - Logging Run at Pilot Hole Total Depth - PTD Intermediate Casing: Bit size: Total Depth: Mud system: 9 5/8 @ 3137 m SS, (3160m RT) ITD2 8 4094 m (Estimated Pilot Hole TD - PTD) WBM

Run 2-Descent 1. GR/DSI/PEX/NGT w/AIT ( or HRLA ): Gamma Ray, Dipole Sonic, Platform Express, Litho Density,

Compensated Neutron, Spectral Gamma Ray and Array Induction. (Tools may be run separately if overhole dictates.) AIT-GR: PTD to ITD2 Vertical Scale: Horizontal Scales: Resistivities: Resistivities: Resistivities: GR: TLD-HGNS-GR-CAL: PTD to ITD2 Vertical Scale: Horizontal Scales: GR: Calipers:
December, 2005

1:200 and 1:500 0.2-2000 ohm-m Log 0-50 ohm-m Lin 1000-0 m-mhos Lin 0-150 API (Lower scale) (Upper Scale) (Upper Scale) (Both scales)

1:200 and 1:500 0-150 API 6- 16 (Both scales) (Both scales)


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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

RHOZ/RHO8: PEFZ/PEF8: HDRA:

2 3 g/cc 0-10 Track 2

(Upper scale) (Both scales) (Both scales) (Lower scale)

-0.05 to 0.45 g/cc Track 2

DPHZ-NPOR/HNPO: 0.45 to 0.15

LS Porosity Scales - Rho fluid 1 g/cc Rho matrix 2.71 g/cc

GR-DSI-CAL: PTD to ITD2 Vertical Scale: Horizontal Scales: GR: Calipers: DT shear: HNGS: PTD to ITD2 Vertical Scale: Horizontal Scales: Standard Scales 1:200 0-150 API 6- 16 (Both scales) (Both scales) (Both scales) (Both scales) 1:200 and 1:500

DT compressional: 140 - 40 usec/ft

200 - 100 usec/ft (best scale)

Note: 1. Make a complete Hi-Res pass with gamma ray, resistivity, density, and neutron data over all potential pay sands. Hi-Res is on a scale of 1:120 and AIT on one foot spacing. (Include two and four foot AIT spacings in digital file).
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

2. Include in digital data, porosity on Sandstone (2.65 g/cc). and Limestone Matrix (2.71 g/cc). 3. Hole size is 8.5. Prepare tools accordingly. 4. Simultaneously acquire DT compressional and DT shear data for wellbore stability (Dipole Mode and P&S mode).

2.4

Run 2 - Descent #2 and 3:- GR/MDT ( Contingent ):

Gamma ray with Modular Formation Dynamics Tester. MDT-MRMS-MRPO-MRFA-MRPA Tool should be comprised of standard equipment with two single probe modules (with standard and large diameter probes, resistivity meters), two Multi-Sample Modules each with 6-450cc sample bottles, (MRMS), one Pump Out Module (MRPO), one Optical Fluid analysis Module (MRFA), and one Packer Module (MRPA). Backup equipment must include critical items; standard MDT system, MRPO, MRFA, and MRPA. Gamma Ray to be used for depth-tie and for positioning. Standard log scales to be used for gamma ray and pressure data. Tentative Plan Two descents are planned. The first descent will determine pressure gradients, and high permeability intervals. The tool configuration will be gamma Ray-standard MDT with two single probe modules, one with a standard and one with a large diameter probe. The second descent will be run to obtain samples. The tool configuration will be gamma ray-standard MDT with one single probe module with resistivity meter,
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

optical fluid analyzer module, pump-out module, packer module, multisample chambers. Procedure - pressures: Run in the hole with the MDT tool to 100 metres above the bottom of the casing and check the seat on the lower single probe and the seats on the dual probe. Make pressure measurements in the mud column at 100, 50, and 0 metres above the base of the casing. Determine the stabilization times for the various probes and compare the mud pressures measured from the probes. Plot the mud pressures and determine the mud column noise and gauge error. If the packer seats and gauges checkout, run in to the top of the reservoir. Establish a pressure measurement frequency (measurements/meter) such that the pressure gradient is precise enough to distinguish the gas gradient of 0.305 psi/m, an oil gradient of 8.30 kPa/m or 1.200 psi/m (estimated 36 API), and a water gradient of 150 psi/m (estimated 40,000 ppm NaCl). repeating depth points as necessary to obtain true formation pressures. Depths for pressure gradients to be determined by Calgary office. Procedure - Samples Once adequate gas-oil-water gradients have been obtained, and if required PVT quality hydrocarbon samples and formation water samples will then be taken from top to bottom. Samples depths and types to be determined by Calgary office. 2.5 Run 2 - Descent #4:- GR/VSI : Gamma ray with Versatile Seismic Imager. Record measurements from the bottom sand to the top, to minimize hysterisis errors,

December, 2005

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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

A four level VSI configuration with a maximum 20 m spacer between levels is to be used. A gamma ray tool will be run for depth control. Levels from PTD to 100 m above ITD2 will be utilized. Standard presentation and scales. The airgun source array system is to be determined. The airgun hook-up configuration is tentatively set as follows: Surface source for checkshot or vertical VSP to be a constant offset from the drill floor. The source should be located 6m below sea surface to achieve frequencies up to 100 Hz. Air supply to be provided from air compressors and backed up with rig air. Interval to be logged is PTD to 100m above ITD2. Final levels to be determined by Calgary office at the time of logging. At each station, five good airgun pops are to be recorded. Decisions regarding final displays, tape output etc. will be stated later. Number of reports will be 7 (3 for Husky, and 4 for CNOOC). Number of tapes will be 2 (one for each group). Operation Notes: 1. Tension curve to be presented on all surveys, head tension device to be run on all runs. 2. At least one 50 m repeat over a zone of varied response is required. If more than one repeat is required, present all on final log. Tool should be repeated until Companies' representative is satisfied with the data.
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Husky Oil China Ltd. Drilling Programme for Liwan 3-1-1 Exploration Block 29/26 Pearl River Mouth Basin, Offshore China

3. "Before" and "after" survey calibrations should be recorded, labeled and included with master shop calibrations. Operations should not proceed if sonde exceeds acceptable tolerances, unless approved by Companies' representative. 4. Parameter and job event summary tables are required on the bottom of each log. Tape and LIS summary directories are also required on log tails. Include tool diagrams. 5. Overlap tie-ins by at least 30m. 6. Data transmission will be via satellite/internet.

December, 2005

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