1701 n. congress approved p.o. box 12967 austin, texas

21
RAILROAD COMMISSION OF TEXAS 1701 N. Congress P.O. Box 12967 Austin, Texas 78701-2967 OIL WELL POTENTIAL TEST, COMPLETION OR RECOMPLETION REPORT, AND LOG Form W-2 Status: Date: Tracking No.: 09/19/2017 Approved 172634 OPERATOR INFORMATION WELL INFORMATION Operator Name: Operator Address: Operator No.: FILING INFORMATION API No.: Well No.: Lease Name: RRC Lease No.: Location: Latitude: This well is located which is the nearest town in the county. Longitude: Field No.: Field Name: RRC District No.: County: miles in a direction from COMPLETION INFORMATION Purpose of filing: Type of completion: Type of Permit Permit to Drill, Plug Back, or Deepen Rule 37 Exception Fluid Injection Permit O&G Waste Disposal Permit Other: Date Permit No. Spud date: Date plug back, deepening, recompletion, or drilling operation commenced: Number of producing wells on this lease in this field (reservoir) including this well: Total number of acres in lease: Total depth TVD (ft.): Plug back depth TVD (ft.): Was directional survey made other than inclination (Form W-12)? Recompletion or reclass? Type(s) of electric or other log(s) run: Multiple completion? Is Cementing Affidavit (Form W-15) attached? Rotation time within surface casing (hours): Plug back depth MD (ft.): Total depth MD (ft.): reservoir (ft.): Distance to nearest well in lease & drilling operation ended: Date plug back, deepening, recompletion, or Date of first production after rig released: Elevation (ft.): 11/26/2016 OPUS OPERATING II LLC 625171 PO BOX 11403 MIDLAND, TX 79702-0000 42-461-40164 2 UNIVERSITY TAYLOR DRAW 31 19391 Section: 31, Block: 4, Survey: UL, Abstract: U67 31.1545 UPTON 7C SHEEP MOUNTAIN (CONSOLIDATED) 82857300 -101.78923 19.5 SW BIG LAKE, Initial Potential New Well 808688 02/19/2016 11/26/2016 12/16/2016 04/13/2017 2 491.80 10410 10410 No Neutron logs 2966.0 2792 GL 61.5 Yes No No Electric Log Other Description: Well Type: Producing Completion or Recompletion Date: 04/13/2017 Location of well, relative to nearest lease boundaries No of lease on which this well is located: 1320.0 Feet from the Line and North 1405.0 Feet from the East Line of the Lease. UNIVERSITY TAYLOR DRAW 31 Off Lease : Field & Reservoir Gas ID or Oil Lease No. Well No. Prior Service Type FORMER FIELD (WITH RESERVOIR) & GAS ID OR OIL LEASE NO. PACKET: N/A 4 Page 1 of

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Page 1: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

RAILROAD COMMISSION OF TEXAS1701 N. Congress

P.O. Box 12967Austin, Texas 78701-2967

OIL WELL POTENTIAL TEST, COMPLETION OR RECOMPLETION REPORT, AND LOG

Form W-2Status:Date:Tracking No.:

09/19/2017

Approved

172634

OPERATOR INFORMATION

WELL INFORMATION

Operator Name:Operator Address:

Operator No.:

FILING INFORMATION

API No.:Well No.:Lease Name:RRC Lease No.:Location:

Latitude:This well is located

which is the nearest town in the county.

Longitude:

Field No.:Field Name:RRC District No.:County:

miles in adirection from

COMPLETION INFORMATION

Purpose of filing:Type of completion:

Type of PermitPermit to Drill, Plug Back, or DeepenRule 37 Exception

Fluid Injection PermitO&G Waste Disposal PermitOther:

Date Permit No.

Spud date:

Date plug back, deepening, recompletion, ordrilling operation commenced:

Number of producing wells on this lease inthis field (reservoir) including this well:

Total number of acres in lease:

Total depth TVD (ft.):

Plug back depth TVD (ft.):

Was directional survey made other thaninclination (Form W-12)?

Recompletion or reclass?Type(s) of electric or other log(s) run:

Multiple completion?

Is Cementing Affidavit (Form W-15) attached?Rotation time within surface casing (hours):

Plug back depth MD (ft.):

Total depth MD (ft.):

reservoir (ft.):Distance to nearest well in lease &

drilling operation ended:Date plug back, deepening, recompletion, or

Date of first production after rig released:

Elevation (ft.):

11/26/2016

OPUS OPERATING II LLC 625171PO BOX 11403 MIDLAND, TX 79702-0000

42-461-40164 2

UNIVERSITY TAYLOR DRAW 31

19391 Section: 31, Block: 4, Survey: UL, Abstract: U67

31.1545

UPTON7C

SHEEP MOUNTAIN (CONSOLIDATED)

82857300

-101.78923

19.5 SW

BIG LAKE,

Initial Potential

New Well

80868802/19/2016

11/26/2016 12/16/2016

04/13/2017

2

491.80

10410

10410

No

Neutron logs

2966.0

2792 GL

61.5Yes

No No

Electric Log Other Description:

Well Type: Producing Completion or Recompletion Date: 04/13/2017

Location of well, relative to nearest lease boundaries Noof lease on which this well is located: 1320.0 Feet from the Line andNorth

1405.0 Feet from the East Line of the

Lease.UNIVERSITY TAYLOR DRAW 31

Off Lease :

Field & Reservoir Gas ID or Oil Lease No. Well No. Prior Service TypeFORMER FIELD (WITH RESERVOIR) & GAS ID OR OIL LEASE NO.

PACKET: N/A4Page 1 of

Page 2: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

W2: N/A

GAU Groundwater Protection Determination

SWR 13 Exception

FOR NEW DRILL OR RE-ENTRY, SURFACE CASING DEPTH DETERMINED BY:Depth (ft.): Date:

Depth (ft.):

820.0 07/29/2015

INITIAL POTENTIAL TEST DATA FOR NEW COMPLETION OR RECOMPLETIONDate of test:Number of hours tested:Was swab used during this test?

Oil (BBLS):Gas - Oil Ratio:

Gas (MCF):Oil (BBLS):

Flowing Tubing Pressure:

Gas (MCF):

Oil produced prior to test:Choke size:Production method:

Oil Gravity - API - 60.:Water (BBLS):

PRODUCTION DURING TEST PERIOD:

CALCULATED 24-HOUR RATE

Water (BBLS):

Casing Pressure:

04/15/2017 Pumping

24No 14.00

135.00

1123

39

135.0

40.0

1123

39

288

CASING RECORD

Row

CasingSize(in.)

Type ofCasing

HoleSize(in.)

SettingDepth

(ft.)

Multi -Stage ToolDepth (ft.)

Multi -Stage ShoeDepth (ft.)

CementClass

CementAmount(sacks)

SlurryVolume(cu. ft.)

Top ofCement

(ft.)

TOCDetermined

By1 Surface 13 3/8 17 1/2 869 PREM.

PLUS1705 2609.0 Circulated to Surface0

2 Intermediate 8 5/8 11 4378 50/50 POZ 2013 4065.0 Circulated to Surface0

3 Conventional Production 5 1/2 7 7/8 10410 PREM50/50 POZ

1475 2809.0 Cement Evaluation Log3285

LINER RECORD

RowLiner

Size (in.)CementClass

CementAmount(sacks)

SlurryVolume(cu. ft.)

Top ofCement

(ft.)TOC

Determined ByHole

Size (in.)Liner

Top (ft.)Liner

Bottom (ft.)

N/A

TUBING RECORD

Row Size (in.) Depth Size (ft.) Packer Depth (ft.)/Type

1 2 7/8 10100 /

PRODUCING/INJECTION/DISPOSAL INTERVAL

Row Open hole? From (ft.) To (ft.)1 No 10255.0L 10235

2 No 10136.0L 9927

3 No 9797.0L 9747

4 No 9508.0L 9440

5 No 9384.0L 9364

6 No 9204.0L 9184

7 No 9046.0L 8861

8 No 8650.0L 8497

9 No 8374.0L 8328

10 No 8190.0L 8099

11 No 7998.0L 7920

4Page 2 of

Page 3: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

ACID, FRACTURE, CEMENT SQUEEZE, CAST IRON BRIDGE PLUG, RETAINER, ETC.

Row Type of Operation Amount and Kind of Material Used Depth Interval (ft.)

Was hydraulic fracturing treatment performed?

Is well equipped with a downhole actuation

Production casing test pressure (PSIG) prior to

Has the hydraulic fracturing fluid disclosure beenreported to FracFocus disclosure registry (SWR29)?

If yes, actuation pressure (PSIG):

Actual maximum pressure (PSIG) during hydraulic

No

Nosleeve?

No

fracturing:hydraulic fracturing treatment:

1 Acid 1002 BBLS 15% HCL ACID 102557820

FORMATION RECORD

Formations Depth TVD (ft.) Depth MD (ft.)Is formation

isolated?Encountered Remarks

YATES 1100.0 YesYes

GRAYBURG 1600.0 YesYes

SAN ANDRES - SALTWATER FLOW 2500.0 YesYes

SPRABERRY 6623.0 YesYes

WOLFCAMP 7626.0 YesYes

STRAWN 9290.0 YesYes

DEVONIAN 10043.0 YesYes

FUSSELMAN No TVD @10410; FUSSELMANNOT ENCOUNTERED AT

SWR 13 REPORTED 11000'.

No

ELLENBURGER No TVD @10410;ELLENBERGER NOT

ENCOUNTERED AT SWR 13

No

Do the producing interval of this well produce H2S with a concentration in excess of 100 ppm (SWR 36)?

Is the completion being downhole commingled (SWR 10)?

No

No

REMARKS10235-10255 DEVONIAN; 9927-10136 WOODFORD/BARNETT; 9747-9797 PENN; 9440-9508 ATOKA; 9364-9384 STRAWN;7820-9204 WOLFCAMPSWR 10 WILL BE FILED ON 6/27/17.

4Page 3 of

Page 4: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

RRC REMARKSPUBLIC COMMENTS:

CASING RECORD :

TUBING RECORD:

PRODUCING/INJECTION/DISPOSAL INTERVAL :

ACID, FRACTURE, CEMENT SQUEEZE, CAST IRON BRIDGE PLUG, RETAINER, ETC. :

POTENTIAL TEST DATA:

OPERATOR'S CERTIFICATIONPrinted Name:Telephone No.: Date Certified:

Title:Connie Swan

(918) 621-6533 08/02/2017

4Page 4 of

Page 5: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas
Bob
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625171
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7C
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461-40164
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808688
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SHEEP MOUNTAIN (CONSOLIDATED)
Bob
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82857300
Page 6: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas
Page 7: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas
Bob
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625717
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7C
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461-40164
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808688
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SHEEP MOUNTAIN (CONSOLIDATED)82857300
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11
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4378
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8 5/8
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Page 9: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas
Bob
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625171
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7C
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461-40164
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808688
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SHEEP MOUNAIN (CONSOLIDATED)
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82857300
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7 7/8
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10410
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5 1/2
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17
Page 10: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas
Page 11: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

I.

RAILROAD COMMISSION OF TEXAS OIL AND GAS DIVISION

INCLINATION REPORT (One Copy Must Be Filed With Each Completion Report)

FIELD NAME (as per RRC Records or Wildcat) LEASE NAME 12 University Taylor Draw 31 3. OPERATOR Opus Operating II LLC 4. ADDRESS P.O. Box 11403 Midland, TX 79702 5. LOCA n ON (Section, Block, and Survey) Section 31, Block 4, Abstract U67, Survey UL

RECORD OF INCLINATION

-II. Measured Depth 12. Course Length -13. Angle of 14. Displacement per

15. Course Inclination Hundred Feel

( feel) (Hundreds of feet) Degree,) (S ;ne of Angle x 100)

Displacement (feet)

240 240 0.10 0.17 0.42 502 262 0.80 1.40 3.66 830 328 1.00 1.75 5.72 881 51 1.00 1.75 0.89 960 79 1.00 1.75 1.38 1250 290 1.10 1.92 5.57 1450 200 1.30 2.27 4.54 1600 150 1.10 1.92 2.88 1830 230 1.30 2.27 5.22 1976 146 1.00 1.75 2.55 2133 157 0.80 1.40 2.19 2260 127 1.00 1.75 2.22 2447 187 0.40 0.70 1.31 2606 159 0.30 0.52 0.83 2816 210 0.40 0.70 1.47

If additIOnal space IS needed, use the reverse Side oflhls form.

17. Is any information shown on the reverse side of this form? 0" yes o no

6.

7.

8.

9.

RRC District 7C

Fonn W-12 (1-1-71)

FOD1296

RRC Lease Number. (Oil comp'~t ions only)

Well Number

2 RRC Identification Number

(Gas completions on ly)

10. County

Upton

16. Accumu lative Displacement (feet)

0.42 4.08 9.80 10.69 12.07 17.64 22.17 25.05 30.27 32.82 35.01 37.23 38.53 39.37 40.83

18. Accumulative total displacement of well bore at total depth of 10271 reel~ ---=-=-'-=-;=;-- 189.98 feet.

~.--~~~--·19. Inclination measurements were made in· 0 Tubing 0 Casing o Open hole

20. Distance from surface location of well to the nearest lease line .. ..

21. Minimum distance to lease line as prescribed by fi eld rules ...

22 . Was the subject well at any time intent ionally dev iated from the vertical in any manner whatsoever?

(If the answer to the above question is "yes," attach written explanation of the ci rcumstances.)

0" Drill Pipe

INCLINATION DATA CERTIFICATION OPERATOR CERTIFICATION

feet. ------feet. ------

no

I declare under penalties prescribed in Sec. 9 1.143, Texas Natural Resources Code, that I 1 declare under penallies prescribed in Sec . 9 1.143, Texas Natural Resources Code. that I am am authorized to make this cenifi cation, thai I have personal knowledge of the inclination data authorized 10 make this cenification, that I have personal knowledge of all infonnation presented and facts placed on both sides of ..!kis fonn and that such data and fac ts are tme, correct, and in this repon , and that all data presented on both sides of this fonn are true, correct, and complete complete to t~sl oU>, .... k9Owl~d(e. This cenification covers all data as indicated by to the best of my knowledge. This cen ification covers all data and infonnation presented herein "I<n~~~lh::nn m'p' ;''';''';0' da",,, ;,d;",od by ""n,k, (0) by 'h, ;I<m ,"mbe~ 0' ,h;, fa.m.

,/ Slgnatute of AUthorized Representative Signature of Authorized Representative

/ Kirk Cleere, President Name of Person and Title (type or print) Name of Person and Title (type or print)

Sendero Drilling Com pany, LLC Name of Company Operator

Telephone: 325-655-7641 Area Code

Telephone: -:--:".-,-________________ _

Area Code

Rai/road Commission Use Only: Approved By: _________________ _ Title: _____________ _ Date: __________ _

• Designates items certified by company that conducted the inclination surveys.

CSSWan
Typewritten Text
CSSWan
Typewritten Text
1320
CSSWan
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Sheep Mountain Consolidated
CSSWan
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CSSWan
Typewritten Text
CSSWan
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CSSWan
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467
CSSWan
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CSSWan
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CSSWan
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Connie Swan, Regulatory Administrator
CSSWan
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Opus Operating II LLC
CSSWan
Typewritten Text
(918) 621-6533
CSSWan
Typewritten Text
Page 12: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

R E COR 0 0 FIN eLI NAT ION (Continued from reverse side) ·Il. Measured Depth 12. Course Length ·\3. Angle of 14. Displacement per 15. Course 16. Accumulative

(feet) (Hundreds of feet) Inclination (Degrees) Hundred Feet Displacement (feet) Displacement (feet) Sine of Angle xl 00)

2931 115 0.50 0.87 1.00 41.84

3134 203 0.00 0.00 0.00 41.84

3164 30 0.10 0.17 0.05 41.89

3270 106 0.20 0.35 0.37 42.26

3428 158 0.10 0.17 0.28 42.53

3553 125 0.00 0.00 0.00 42.53 3711 158 0.40 0.70 1.10 43.64

3921 210 0.30 0.52 1.10 44.74

4144 223 0.40 0.70 1.56 46.29 4301 157 0.40 0.70 1.10 47.39 4372 71 0.40 0.70 0.50 47.89 4622 250 0.70 1.22 3.05 50.94 4830 208 0.30 0.52 1.09 52.03 5126 296 0.80 1.40 4.13 56.16 5376 250 1.00 1.75 4.36 60.53 5830 454 0.90 1.57 7.13 67.66 6081 251 1.00 1.75 4.38 72.04 6335 254 0.30 0.52 1.33 73.37 6618 283 0.70 1.22 3.46 76.82 6893 275 1.90 3.32 9.12 85.94 6918 25 2.00 3.49 0.87 86.81 7021 103 2.20 3.84 3.95 90.77 7051 30 2.00 3.49 1.05 91.82 7146 95 2.00 3.49 3.32 95.13 7170 24 2.00 3.49 0.84 95.97 7250 80 2.10 3.66 2.93 98.90 7344 94 2.00 3.49 3.28 102.18 7470 126 1.90 3.32 4.18 106.36 7596 126 1.80 3.14 3.96 110.32 7626 30 2.00 3.49 1.05 111.36 7658 32 1.90 3.32 1.06 112.42 7753 95 1.90 3.32 3.15 115.57 7847 94 1.70 2.97 2.79 118.36 7974 127 1.90 3.32 4.21 122.57 8069 95 2.30 4.01 3.81 126.39 8165 96 2.30 4.01 3.85 130.24 8228 63 2.50 4.36 2.75 132.99

If additional space is needed, attach separate sheet and check here. ~

REMARKS: ________________________________________________________ __

- INSTRUCTIONS -An inclination survey made by persons or concerns approved by the Commission shall be filed on a form prescribed by the Comm iss ion for each well drilled or deepened with rotary tools or when, as a result of any operation, the course orthe we ll is changed. No inclination survey is required on wells that are drilled and completed as dry holes that are plugged and abandoned. (Inclination surveys are required on re-entry of abandoned wells.) Inclination surveys must be made in accordance with the provisions of Statewide Rule II.

This report shall be filed in the Distri ct Office of the Commission for the district in which the we ll is drilled, by attaching one copy to each appropriate completion for the wel l. (except Plugging Report)

The Commission may require the submittal of the original charts, graphs, or di scs, resulting from the surveys.

Page 13: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

R E COR D 0 FIN eLI NAT ION (Continued from reverse side) ·11. Measured Depth 12. Course Length ·13. Angle of 14. Displacement per 15. Course 16. Accumul at ive

(feet) (Hundreds of feet) Inclination (Degrees) Hundred Feel Displacement (feet) Displacement (feel) Sine of Angle x I 00)

8290 62 2.40 4.19 2.60 135.58 8354 64 2.40 4.19 2.68 138.26 8363 9 2.40 4.19 0.38 138.64 8393 30 2.30 4.01 1.20 139.84 8605 212 1.80 3.14 6.66 146.50 8700 95 1.60 2.79 2.65 149.15 8794 94 1.00 1.75 1.64 150.80 8980 186 1.00 1.75 3.25 154.04 9073 93 1.00 1.75 1.62 155.66 9169 96 1.00 1.75 1.68 157.34 9265 96 0.90 1.57 1.51 158.85 9327 62 1.10 1.92 1.19 160.04 9421 94 1.00 1.75 1.64 161.68 9517 96 1.80 3.14 3.02 164.69 9610 93 1.40 2.44 2.27 166.97 9703 93 1.30 2.27 2.11 169.08 9801 98 1.50 2.62 2.57 171.64 9895 94 1.40 2.44 2.30 173.94 10021 126 2.40 4.19 5.28 179.21 10116 95 2.60 4.54 4.31 183.52 10180 64 2.50 4.36 2.79 186.32 10241 61 2.80 4.88 2.98 189.30 10271 30 1.30 2.27 0.68 189.98

I f additional space is needed, attach separate sheet and check here. 0 REMARKS:

- INSTRUCTIONS -An inclination survey made by persons or concerns approved by the Commission shall be filed on a fonn prescribed by the Commission for each we ll drilled or deepened with rOlary tools or when, as a result of any operation, the course of the well is changed. No inclination survey is required on wells that are drilled and completed as dry holes that are plugged and abandoned. (Inclination surveys are required on re-entry of abandoned wells.) Inclination surveys must be made in accordance with the provisions of Statewide Rule 11.

This report shall be filed in the District Office of the Commission for the distri ct in which the well is drilled, by anaching one copy to each appropriate completion for the well. (except Plugging Report)

The Commission may require the submittal of the original charts, graphs, or discs, resulting from the surveys.

Page 14: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

RAILROAD COMMISSION OF TEXASOil and Gas Division

FORM L-1 ELECTRIC LOGSTATUS REPORT

Instructions

When to File Form L-1: Where to File Form L-1:� with the appropriate Commission district office� with Forms G-1, W-2, and GT-1 for new and deepened gas, oil, and

geothermal wells

� with Form W-3 for plugged dry holes� when sending in a log which was held under a request for confidentiality and the period for confidentiality has not yet expired.

Filling out Form L-1:� Section I and the signature section must be filled out for all wells� complete only the appropriate part of Section II

Type of log required:When is Form L-1 NOT required:

� with Forms W-2, G-1, and GT-1 filed for injection wells, disposal wells, water supply wells, service wells, re-test wells, re- classifications, and plugbacks of oil, gas or geothermal wells� with Form W-3 for plugging of other than a dry hole

� any wireline survey run for the purpose of obtaining lithology, porosity, or resistivity information� no more than one such log is required but it must be of the subject well� if such log is NOT run on the subject well, do NOT substitute any other type of log; just select Section II, Part A below

This facsimile L-1 was generated electronically from data submitted to the RRC.

SECTION I. IDENTIFICATIONOperatorName:

District No.

CompletionDate:

Drilling PermitNo.

FieldName

LeaseName

County

Lease/IDNo.

WellNo.

API

No. 42-SECTION II. LOG STATUS (Complete either A or B)

7C 04/13/2017

UPTON

808688SHEEP MOUNTAIN (CONSOLIDATED)

OPUS OPERATING II LLC

UNIVERSITY TAYLOR DRAW 31 19391 2

461-40164

A. BASIC ELECTRIC LOG NOT RUN

B. BASIC ELECTRIC LOG RUN. (Select one)

1. Confidentiality is requested and a copy of the header for each log that has been run on the well is attached.

2. Confidentiality already granted on basic electric log covering this interval (applicable to deepened wells only).

3. Basic electric log covering this interval already on file with Commission (applicable to deepened wells only).

4. Log attached to (select one):

(a) Form L-1 (this form). If the company/lease name on log is different from that shown in Section I, please enter name on log here:

Check here if attached log is being submitted after being held confidential.

(b) Form P-7, Application for Discovery Allowable and New Field Designation.

(c) Form W-4, Application for Multiple Completion:

Well No(s).

Signature Title

Name (print) Phone Date

-FOR RAILROAD COMMISSION USE ONLY-

X

X

08/02/2017

Lease or ID No(s).

(918) 621-6533

Connie Swan

Tracking No.: 172634

Page 15: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas
Page 16: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas
Page 17: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas
Page 18: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

RAILROAD COMMISSION OF TEXAS

OIL AND GAS DIVISION

1701 NORTH CONGRESS AVENUE POST OFFICE BOX 12967 AUSTIN, TEXAS 78711-2967 PHONE: 512/463-6838 FAX: 512/463-6955 TDD 800/735-2989 AN EQUAL OPPORTUNITY EMPLOYER http://www.rrc.state.tx.us

Page 1 of 2

September 14, 2017

OPUS OPERATING II LLC

ATTN: REGULATORY DEPARTMENT

PO BOX 11403

MIDLAND TX 79702

RE: APPLICATION FOR EXCEPTION TO SWR 10

LEASE: UNIVERSITY TAYLOR DRAW 31

WELL NO. 2

UPTON COUNTY, DISTRICT 7C, TEXAS

API NO. 461-40164

FIELD NAME FIELD NO. COMPLETION DEPTHS (FT)

SHEEP MOUNTAIN (CONSOLIDATED) 82857300 7760'-9805'

TOKEEN (MISSISSIPPIAN) 90358500 9922'-10141'

BLOCK 4 (DEVONIAN) 09144200 10235'-10255'

HYDROGEN SULFIDE RESTRICTION: NO

The Commission has approved your application to down-hole commingle production within the

above-referenced wellbore from the SHEEP MOUNTAIN (CONSOLIDATED); TOKEEN

(MISSISSIPPIAN); and BLOCK 4 (DEVONIAN) fields in UPTON County, Texas. For allowable

and reporting purposes, the well will be assigned to the SHEEP MOUNTAIN

(CONSOLIDATED) field. It will be necessary to have or obtain Commission authority to

complete this well in each of the subject zones (Form W-1 approval). The effective date of this

SWR 10 Exception is August 03, 2017. This exception to SWR 10 will expire if not used within

two (2) years from the date of this permit. This expiration date is September 15, 2019.

If the commingled well tests as a gas well and the well is not currently on schedule as a multi-

completed well or never has been on schedule as a single completion in any of the non-reporting

fields listed above, you must file a well-record-only G-1 for the field(s). This completion must be

treated as a separate completion. It will not be eligible for allowable status, and will be carried on

the proration schedule as a SWR 10 well. The only instances in which the production will be

assigned to a field in which the allocation formula has been suspended are when: (1) The allocation

formula has been suspended in all of the fields cited in the Rule 10 Exception application, or (2) If

the production is less than 200 MCFPD. If the status for any of the fields changes it may be

necessary to reassign the production to the prorated field. Contact your proration analyst to inquire

as to which forms are necessary to change the reporting field.

CHRISTI CRADDICK, CHAIRMAN LORI WROTENBERY

RYAN SITTON, COMMISSIONER DIRECTOR, OIL AND GAS DIVISION

WAYNE CHRISTIAN, COMMISSIONER LESLIE SAVAGE, P.G.

ASSISTANT DIRECTOR, TECHNICAL PERMITTING

Page 19: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

1701 NORTH CONGRESS AVENUE POST OFFICE BOX 12967 AUSTIN, TEXAS 78711-2967 PHONE: 512/463-6838 FAX: 512/463-6955 TDD 800/735-2989 AN EQUAL OPPORTUNITY EMPLOYER http://www.rrc.state.tx.us

Page 2 of 2

Acreage assigned to the referenced well for allocation of allowable shall not be assigned to any

other well or wells projected to or completed in the above-referenced fields; such duplicate

assignment of acreage is not acceptable, provided, however, that this limitation shall not prevent the

reformation of development or proration units so long as no duplicate assignment of acreage occurs,

and further, that such reformation does not violate other conservation regulations.

The maximum daily allowable for the combined production will be limited to the top allowable

for the reporting field and will become effective upon receipt of Form G-1 or W-2 showing

combined completion data and results of a potential test performed after the physical work of

down hole commingling has been completed and run in accordance with Statewide Rule 28.

Please indicate in "remarks" the reason for filing this report, giving date of Commission approval

of this Rule 10 Exception.

Should secondary recovery operations be initiated in either of these reservoirs, it may be

necessary to segregate these zones. If surface-commingling authority has been granted, it may

be necessary to amend or cancel this authority.

Permit conditions:

The completion of the commingled well must be a reasonable match with the wellbore diagram

filed with the application. Variances in completion depths are acceptable provided that these

completion depths remain within the designated correlative intervals for the commingled fields.

A copy of this wellbore diagram must be filed with the completion report for the commingled

well.

Note: The distribution of this document will be by E-MAIL ONLY. E-mail sent to

[email protected].

If you have any questions, you may contact the engineering unit in the Austin office at 512-463-

1126.

Application for Exception to SWR 10, September 14, 2017

UNIVERSITY TAYLOR DRAW 31 — WELL NO. 2, API NO. 461-40164

Page 20: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas

Date:

P-5#:

Attention: OPUS OPERATING II LLC

PO BOX 11403

MIDLAND, TX 79702

GAU Number: 12168

GROUNDWATER PROTECTION DETERMINATION

Groundwater Advisory Unit

RRC Lease Number:

Form GW-2

625171

API Number:

Longitude:

Latitude:

Datum: NAD27

X-Coor/Long:X-Coor/Long:

31.139588

-101.782219

County:

Purpose:

Location:

UPTON

New Drill

Survey-UL; Abstract-U67; Block-4; Section-31

To protect usable-quality groundwater at this location, the Groundwater Advisory Unit of the Railroad Commission ofTexas recommends:

29 July 2015

Lease Name: UNIVERSITY TAYLOR DRAW 31

Well Number: 2

Total Vertical Depth: 10500

The interval from the land surface to 20 feet below the base of the Cretaceous-age beds must be protected. The base ofthe Cretaceous is estimated to occur at a depth of 800 feet.

Please send Gamma Ray Porosity log of this well when it is available.

Groundwater Advisory Unit, Oil and Gas Division

Form GW-2

Rev. 02/2014

P.O. Box 12967 Austin, Texas 78771-2967 512-463- 2741

Internet address: www.rrc.texas.gov

This determination is based on information provided when the application was submitted on 07/28/2015. If the locationinformation has changed, you must contact the Groundwater Advisory Unit, and submit a new application if necessary.If you have questions, please contact us at 512-463-2741 or [email protected].

Page 21: 1701 N. Congress Approved P.O. Box 12967 Austin, Texas