drilling, geological and safety contingency plan of …

2004OC127-04DRILLING, GEOLOGICAL AND SAFETY CONTINGENCY PLAN OF THE WELL HYDRO-QUEBEC, PETROLE ETGAZ-MIGUASHA NO 1

http://gq.mines.gouv.qc.ca/documents/examine/2004OC12704

http://gq.mines.gouv.qc.ca/documents/sigeom/Licence.pdf

http://gq.mines.gouv.qc.ca/documents/sigeom/license.pdf

BISSETT RESOURCE CC JLTANTS LTD. 0,

J

Hydro Québec

HYDRO-QUEBEC PETROLE ET GAZ

HQPG-MIGUASHA No. 1

DRILLING, GEOLOGICAL AND

SAFETY CONTINGENCY PLAN

DRAFT 2

SEPTEMBER 30, 2004

Latest Revision:

CrISSETT RESOURCE CC ,ULTANTS LTD.

I

HQPG-MIGUASHA No.1 DRILLING, GEOLOGICAL AND SAFETY CONTINGENCY PLAN

CONTENTS

1.0 GENERAL WELL INFORMATION

1.1 General Well Data

1.2 Survey Plan

1.3 Well Data Requirements

1.4 Approvals

1

2 - 3

4

4

2.0 DRILLING PLAN

2.1 Introduction 1

2.2 Conductor Hole - 444.5 mm x ±20.0 m GL 1

2.3 Surface Hole - 311.2 mm x ±300.0 m To ±350.0 m KB 2

2.4.1 Option 1: Without Intermediate Casing 3

2.4.2 Option 2: With Intermediate Casing 4 - 5

2.5 Air Drilling Equipment 6

2.6 Air Drilling Procedures 6 - 7

2.7 Miscellaneous Requirements 8 - 10

2.8.1 Drilling Curve - Option 1: Without Intermediate Casing 11

2.8.2 Drilling Curve - Option 2: With Intermediate Casing 12

2.9.1 Stick Diagram- Option 1: Without Intermediate Casing 13

2.9.2 Stick Diagram- Option 2: With Intermediate Casing 14

3.0 GEOLOGICAL PROGNOSIS

3.1 Elevations 1

3.2 Projected Geological Markers 1

4.0 EVALUATIONS

4.1 Geological Supervision 1

4.2 Chip Samples 1

4.3 Mud Logging 2

4.4 Coring 2

04 09 30 HQPG-MIGUASHA No. 1 Page i

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4.5 Drillstem Testing 2

4.6 Open Hole Logging 3

4.7 Flow Test Procedures While Air Drilling 4

4.8 Drillstem Testing Services Inspection Checklist 5

5.0 DRILLING BITS AND HYDRAULICS PROGRAM

5.1 General 1

5.2 Surface Hole - 311.2 mm to ±350.0 m KB 1

5.3 Intermediate/Main Hole - 222.3 mm To ±950.0 m Or ±1 800.0 m KB 1

5.4 Main Hole - 155.6 mm From ±950.0 m To ±1 800.0 m KB 2

6.0 DEVIATION

6.1 Target Area 1

7.0 CASING AND CEMENTING

7.1 General Procedures 1

7.2 Surface Casing - 244.5 mm OD x ±300.0 to ±350.0 m KB ..._ 2 - 3

7.3 Production Casing - 139.7 mm OD x ±1 800.0 m KB

(Option 1: Without Intermediate Casing) 4 - 5

7.4 Intermediate Casing - 177.8 mm OD x ±950.0 m KB

(Option 2: With Intermediate Casing) 6 - 7

7.5 Production Liner - 114.3 mm OD x ±850.0 m to ±1 800.0 m KB

(Option 2: With Intermediate Casing) 8 - 9

7.6 Surface Casing Design 10 - 12

7.7 Production Casing Design (Option 1: Without Intermediate Casing) 13 - 15

7.8 Intermediate Casing Design (Option 2: With Intermediate Casing) 16 - 18

7.9 Production Liner Design (Option 2: With Intermediate Casing) 19 - 21

7.10 Primary Cementing Proposal 22 - 30

8.0 DRILL STRING SPECIFICATIONS

8.1 Drillpipe, Drill Collar and Downhole Tool Inspections 1

8.2 Bottomhole Drilling Assemblies 2

9.0 WELLHEAD AND WELL CONTROL EQUIPMENT

9.1 General 1

04 09 30 HQPG-MIGUASHA No. 1 Page ii %

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CONTENTS - CONTINUED

1 9.2 Wellhead

9.3 BOP Stack Arrangement 2 - 4

9.4 Choke Manifold System 5

9.5 Pressure Testing 5 - 6

9.6 Degassing System 6

9.7 Auxiliary Equipment 6

10.0 WELL CONTROL STANDARDS

10.1 Well Control Procedures 1 - 3

10.2 Special Safety considerations While air Drilling 4 - 5

10.3 Recommended Wellsite Layout 5 - 18

11.0 DRILLING FLUID PROGRAM

11.1 General 1

11.2 Drilling Fluid Program 3 - 15

12.0 CONTRACT SERVICES

12.1 Contractors/Suppliers 1 - 2

13.0 DRILLING RIG CONTRACTOR

13.1 Drilling Rig Inventory 1 - 6

04 09 30 HQPG-MIGUASHA No. 1 Page iii i

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Ct2ISSETT RESOURCE CC, .SULTANTS LTD.

1.0 GENERAL WELL INFORMATION

1.1 INTRODUCTION

Hydro-Québec Pétrole et gaz is planning to drill an exploratory well, HQPG-MIGUASHA No.1.

It is anticipated that about 1 800.0 m KB will be drilled to adequately test the primary objectives,

the Lagarde, Indian Point and the La Vielle or White Head formations. These formations are

thought to contain sweet natural gas. However, these formations have not been tested in the

Miguasha area and therefore will be treated as if hydrogen sulphide (H2S) is present in the

natural gas.

1.2 GENERAL WELL DATA

Operator

Well Name and Number

Bottom Hole Location

Province

Field

Terminating Formation

Well Classification

Drilling Contractor

Elevations'

Projected Total Depths

Primary Objectives

Secondary Objectives

20.0 m GL 20.0 m CF

1 795.5 m GL 1 795.5 m CF

Hydro-Québec Pétrole et gaz

HQPG-MIGUASHA No.1

No control required

Québec

Undefined

La Vielle or West Head

Exploration (Wildcat)

Doubil Inc. Rig No. 2

24.5 m KB

1 804.5 m KB

Lagarde, Indian Point, La Vielle or White Head

None

'Estimated

04 09 30 HQPG-MIGUASHA No.1 Section 1.0, Page 1 J

CstsBISSETT RESOURCE CG..JULTANTS LTD.

1.3 SURVEY PLAN

04 09 30 HQPG-MIGUASHA No.1 Section 1.0, Page 2 ~

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1.4 WELL DATA REQUIREMENTS

The Drilling Supervisor will send in a daily drilling report to Dick Bissett at Bissett Resource

Consultants Ltd. detailing the previous 24-hour operation. Reports to be in by 0600 hours

Calgary time.

Drilling and geological wellsite personnel will instruct service companies to provide the following

number of service reports:

Field: Five Final: Five

1.5 APPROVALS

Prepared By: ktuok Peter Liu, B.Sc. Bissett Resource Consultants Ltd.

Approved By:

Dick Bissett Bissett Resource Consultants Ltd.

Approved By:

Bill Wolff, P. Eng. Bissett Resource Consultants Ltd.

Approved By:

Peter K. Dorrins Manager - Oil and Gas Exploration Hydro-Québec Pétrole et gaz

04 09 30 HQPG-MIGUASHA No.1 Section 1.0, Page 4

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aBISSETT RESOURCE C. .SULTANTS LTD.

2.0 DRILLING PLAN

2.1 INTRODUCTION

This drilling, geological and safety contingency plan provides guidelines for drilling procedures

and a description of items such as casing, cementing, logging, testing and well control.

However, this program is only a guideline and the Drilling Supervisor should be aware of

operations that could be improved such as safety, cost and penetration rate.

The well is an exploratory type well and the formations to be penetrated are expected to be

sweet, however, the primary objectives Lagarde, Indian Point and La Vielle or White Head

formations could contain H2S of unknown quantity. Read and adhere to Hydro-Quebec's

Safety-Environmental Manual and all other standard safety practices.

Conduct a prespud meeting to review the program with contractor personnel, service

company representatives, Welisite Geologist and other personnel involved in the operation.

Ensure that everyone involved with this project is aware of the stringent safety standards that

must be maintained throughout this operation.

2.2 CONDUCTOR HOLE - 444.5 mm x ±20.0 m GL

Move in and rig up the drilling tools and auxiliary equipment in compliance with Quebec

regulations, Hydro-Quebec requirements and recognized oilfield standards.

Ensure that all materials, supplies, equipment and services for this project are available and

have been visually inspected for condition and compatibility.

Conventionally drill an 444.5 mm conductor hole with gel / lime drilling fluid to 20.0 m GL or as

dictated by rock or soil conditions.

Run a 339.7 mm OD, API GDE J55, 81.10 kg/m Range 3 ST&C casing to the bottom of the

hole. Pressure cement full length.

Drill the rat and mouse holes. Run liner(s) if required.


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2.3 SURFACE HOLE - 311.2 mm x ±300.0 To ±350.0 m KB

Conventionally drill 311.2 mm hole to ±300.0 m to ±350.0 m KB or a minimum of 20 m into a

competent casing landing section with a gel slurry drilling fluid system. Trip out and double

strap the drill string. Trip out. Rig to run the casing.

Run 244.5 mm OD casing and cement full length (Subsection 7.2).

Wait on the cement at least six hours. Cut off the conductor barrel and 244.5 mm OD surface

casing. Install the casing bowl (Subsection 9.2).

Install intermediate hole BOP equipment, including the control manifold, kill lines, flare lines,

etc (Subsection 9.3).

Pressure test well control equipment (Subsection 9.5). Do not drill out until all equipment

passes the pressure test. The installation and operation of all BOP equipment, including the

control manifold, kill lines, flare lines, etc. will comply with Quebec regulations and Hydro-

Quebec standard.

Hold safety meetings, BOP drills and H2S drills with crews before drilling out.


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2.4.1 OPTION 1: WITHOUT INTERMEDIATE CASING

MAIN HOLE - 222.3 mm x ±1 800.0 m KB

Conventionally drill out the 244.5 mm OD surface casing float collar, cement and float shoe

using clear water with a maximum of 1 500 daN WOB and 40 to 50 RPM. When drilling out,

periodically raise and lower the drill string to assist in cleaning debris from around the bit.

Drill at least 5 m below the casing shoe and run a formation leak-off test (Subsection 10.1).

Install two high-speed centrifuges capable of processing maximum circulation rate plus 20%

excess.

Conventionally drill 222.3 mm main hole with a PHPA drilling fluid system to total depth at

±1 800.0 m KB.

Run conventional drift, DMT or Teledrift surveys (Subsection 2.6).

Condition the mud and dummy trip to the 244.5 mm surface casing shoe. Circulate at least

two bottoms up. Trip out and run openhole logs as described in Subsection 4.6.

If the well is productive, run and cement if required a 139.7 mm OD production casing as

specified in Subsection 7.3.

If the well is non-productive, abandon the well per Quebec Ministry of Natural Resource

requirement.


0.13ISSETT RESOURCE CG. ,SULTANTS LTD.

2.4.2 OPTION 2: WITH INTERMEDIATE CASING

INTERMEDIATE HOLE - 222.3 mm x ±950.0 m KB

Conventionally drill out the 244.5 mm OD surface casing float collar, cement and float shoe

using clear water with a maximum of 1 500 daN WOB and 40 to 50 RPM. When drilling out,

periodically raise and lower the drill string to assist in cleaning debris from around the bit.


Install two high-speed centrifuges capable of processing maximum circulation rate plus 20%

excess.

Conventionally drill 222.3 mm intermediate hole with a PHPA drilling fluid system to

intermediate casing depth of ±950.0 m KB. Evaluate wellbore conditions, if hole stability,

deviation, rate of penetration or other conditions be problematic, consideration will be given to

running intermediate casing.

Run conventional drift, DMT or Teledrift surveys (Subsection 2.6).

Condition the mud and dummy trip to the 244.5 mm surface casing shoe. Circulate at least

two bottoms up. Trip out and run openhole logs as described in Subsection 4.6.

Run and cement a 177.8 mm OD intermediate casing as specified in Subsection 7.4.

Land the 177.8 mm OD casing in slips. Split the BOP stack above the casing bowl and cut off

the 177.8 mm OD casing at the appropriate height. Nipple up the BOP stack (Subsection 9.3).

Pressure test the well control equipment (Subsection 9.5). Do not drill out until the equipment

passes the pressure test.

Hold safety meetings, BOP drills, ignition drills and H2S drills with crews before drilling out.

MAIN HOLE - 155.6 mm x ±1 800.0 m KB

Conventionally drill out the intermediate casing float collar, cement and float shoe with a

maximum of 1 500 daN WOB and 40 to 50 RPM. When drilling out, periodically raise and


aBISSETT RESOURCE CUNSULTANTS LTD.

lower the drill string to assist in cleaning debris from around the bit.


Trip out and lay down the conventional BHA.

Pick up and trip in the air hammer drilling assembly with 155.6 mm hammer bit, unload water

from the intermediate casing using air and blow until dry, air drill 155.6 mm main hole to total

depth at ±1 800 m KB. Adjust the air volume to the drilling rate, hole cleaning and other

down hole conditions necessary for stable hole conditions.

Trip out and lay down air hammer.

Trip in with a 152.4 mm tri-cone bit, slick bottomhole assembly and jars.

Fill the hole with PHPA drilling fluid system as hole conditions dictate each 10 stands on the

way out of the hole.

Install high-speed centrifuge capable of processing maximum circulation rate

plus 20% excess.

Ream/clean to bottom, dummy trip to the 177.8 mm OD intermediate casing shoe, circulate at

least two bottoms up, trip out.

Run open hole logs (Subsection 4.6).

If the well is productive, trip in and circulate at least two bottoms up, trip out, rig to run 114.3

mm OD production liner (Subsection 7.5).

If the well is nonproductive, abandon the well per Quebec Ministry of Natural Resource

requirements.


aBISSETT RESOURCE CC...iULTANTS LTD.

2.5 AIR DRILLING EQUIPMENT

Primary Air Equipment Specifications

Main Hole -155.6 mm x ±950.0 m to ±1 800.0 m KB

Compressor(s) capable of continuously supplying 25 - 40 m3/min depends on water influx.

Booster compressor rated to 10 300 kPa maximum discharge pressure

Auxiliary Air Equipment Specifications

1 - Single-stage Triplex hydraulic drive mist pump, rated capacity of140 L/min at 7 000 kPa

- 152.4 mm OD flanged blouie Line, terminating at least 50 to 60 m from the substructure

to the flare pit.

- Standpipe air manifold complete with necessary valve to allow: 1) drill string to be blown

down on connections and 2) air to be diverted to primary or secondary jets while tripping

1 - Rotating head as follows:

> 346.1 mm Washington rotating head with 346.1 mm/279.4 mm 21 000 kPa lower flange,

with 108.0 mm square Kelly drive brushing and 152.4 mm 21 000 kPa side outlet flange.

• pressurized lubricating system complete with necessary pressure gauges, hoses and

connections to tie in the rotating head and rig air supply.

2.6 AIR DRILLING PROCEDURES

General

s Run light bit weights to limit deviation.

• Use flat bottom air hammer bits with diamond enhanced gauge protection to reduce the

risk of undergauge bits.

• As required, increase air volume with depth. Monitor and record air volumes.

> If water is encountered, start misting and carefully monitor torque and hole drag. Consider

wiper trips to the shoe.

• There must be good communication between the mud engineer, the air drilling personnel,

the drilling supervisor and the drilling contractor when mudding up after air drilling.

04 09 30 HQPG-MIGUASHA No.1 Section 2.0, Page 6 �

IC BISSETT RESOURCE CONSULTANTS LTD.

• When the percussion hammer is being used to drill, maintain table rotation between 20

and 30 RPM.

> Run a drill string float (dart-type) with a proper sub in the drill string to prevent backflow

during connections. Reposition float at the top of the drill string after every 100 m of new

hole.

• If a hammer bit is 4.0 mm or more undergauge, run a tri-cone rock air with diamond-

enhanced gauge inserts and current drilling assembly (minus the hammer drill). Run the bit

with open nozzles and ream to bottom. Trip out and rerun the normal air drilling assembly.

> Select a hammer drill choke with the size based on the circulation rate, surface pressure

and weight required to close the hammer drill.

> When tripping during air drilling operations, crew members will apply thread compound to

only the drillpipe and drill collar pin ends. This will alleviate plugging the hammer drill,

avoiding an additional trip. Dump 20 L of diesel fuel in the drillpipe after each trip to remove

any buildup of thread compound on the internal connections.

> Do not run drillpipe opposite the surface casing with tool joints that are hard-banded.

However, drillpipe with a worn hard-banding should be kept rotating opposite the surface

casing.

> Begin continuous injection of rock oil to the air stream once dusting is achieved. Use

±1.0 L/h of Shell Drill 68 or Esso Arox EP100 or equivalent.

• If deviation becomes excessive, consider running one full gauge 3-point string reamer

above the bit, with the distance determined by drill collar size, angle of deviation, weight on

bit and bed dip.

• If dusting is terminated because of damp hole conditions, air/mist drilling will be started.

Recommended Mist Water Treatment:

< foaming agent, Air Foam B or suitable alternate at 0.25% by volume (if mist water is

recycled, decrease to 0.01% by volume)

< chemical specifications must be environmentally acceptable


CBISSETT RESOURCE CL, ,SULTANTS LTD.

2.7 MISCELLANEOUS REQUIREMENTS

Ensure the blocks hang true over the hole and that the rotating head is in proper alignment to avoid

excessive wear to the drilling head rubbers and to achieve a seal on the Kelly.

If natural gas is present in the wellbore when tripping, use the primary jet to assist in removing the

gas from the wellbore. If gas volumes are large, the drill string will be stripped through the drilling

head equipment.

Ensure the pilot light is lit and continually burns at the end of the blouie line.

Inspect the downhole floats on all trips to ensure proper operation. Repair if required.

Use the optimum volume of air while drilling, because excessive air will create hole erosion.

Closely monitor decreases or increases in air pressure, with the hi-low alarm so that downhole

problems are quickly identified and corrected. Failure to react quickly to changes in air pressure will

result in unnecessary problems and time delays.

Clean the inside of the drillpipe with a high-pressure washer to ensure hardened drilling mud is

washed clear.

Use a 40 to 60 m3 flare tank.

Install a flare line from the manifold to the flare tank with a 60.3 mm OD test riser. Store on location

a 50.8 mm critical flow prover with an assortment of orifice plates before the surface casing is drilled

out.

All operations will be accurately recorded in daily tour reports.

The BOP stack and well control equipment will be kept clean, free of mud and checked daily for

operating efficiency. Record all checks in tour records.

The Drilling Supervisor will pick up the deviation surveys, tour reports, etc. each day and file the data

chronologically.

04 09 30

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HQPG-MIGUASHA No.1 Section 2.0, Page 8

aBISSETT RESOURCE CL SULTANTS LTD.

Field personnel will communicate and cooperate with Government personnel.

Drilling and geological information is CONFIDENTIAL. Only rig personnel and service personnel

directly involved in drilling operations will be allowed on the wellsite.

All crew members will be familiar with BOP operations, well kick control procedures and their duties

during any well control operation. Crew members will be kept informed of current operations,

potential dangers and other information concerning personnel safety and well control.

Any operations not outlined in this program will comply with existing Quebec govemment regulations

and Hydro-Quebec corporate safety program.

Surface Hole Deviation

< Conventional drift surveys will be run at least every 100 m.

< Maximum permissible change of angle will be 0.5°/30 m.

< Maximum deviation allowance at surface casing point will be 1.0°.

Intermediate Hole Deviation

< Run conventional draft surveys at least every 50 m or more frequently if deviation

becomes troublesome.

< Maximum permissible change of angle will be 1.00/30 m.

< Maximum deviation allowance at intermediate casing point will be 3.0°.

< A magnetic multishot directional survey will be run if drift exceed 10.0°.

Main Hole Deviation

< Run conventional draft surveys at least every 100 m or more frequently if deviation

becomes troublesome.

< Maximum permissible change of angle will be 1.0°/30 m.

< Maximum deviation allowance at intermediate casing point will be 3.0°.

< A magnetic multishot directional survey will be run if drift exceed 10.0°.


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Surface Hole Tallies

< The drill string will be tallied on all trips and double tallied before the surface casing is

run.

Intermediate Hole Tallies

< The drill string will be tallied on trips every 500 m of penetration and on trips after any

drill string changes.

< The drill string will be double tallied, before testing, logging and running the casing.

Main Hole Tallies

< The drill string will be tallied on trips every 500 m and on trips after any drill string

change.

< The drill string will be double tallied, before testing, logging and running the casing.

Drilling Recorder

< Drilling times will be recorded from the surface to total depth.

< A Electronic Drilling Recorder will be used to record WOB, RPM, torque, penetration

rate, pump pressure and instantaneous pump strokes.

< Information regarding connections, depth, drilling breaks, downtime, change of pump

strokes, WOB, etc. and all data regarding operations or changes to operations will be

documented by the Drillers on the recorder charts.

< The Drilling Supervisor will pick up the recorder charts each day and file the charts

chronologically.

Hole conditions

< Dick Bissett at Bissett must be notified immediately if poor hole conditions develop, drill

string becomes stuck, a well control problem occurs, etc.

04 09 30 HQPG-MIGUASHA No.1 Section 2.0, Page 10 i

CBISSETT RESOURCE CG,,SULTANTS LTD.

2.8.1 DRILLING CURVE - OPTION 1: WITHOUT INTERMEDIATE CASING

Spud: October 2004 o

100 I3 Dril tole urface

200

300 .5 en and cem t 244

11.1 mm

Ru mm OD casing and nipp e up

400

500

600

700

800

900

1000

1100

hole main Drill 222.3 mm

E 1200

ÿ 1300

1400

1500

1600

1700

1800 test Log, LigR r pl un cas nr o r

1900

2000

2100

2200

2400

2300

2500 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Days From Spud RR November 2004


04 09 30

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aBISSETT RESOURCE CL..SULTANTS LTD.

2.8.2 DRILLING CURVE - OPTION 2: WITH INTERMEDIATE CASING

Spud: October 2004

Drill 311,2 su ace ole El luid system Ill Ill

in im ni 1 ril 2 2. m I terme ia e ho e yid h

L. '11111 III 1111 Illk set a d ement full I n1277.8 in 611 lei asi g.

OEM

Eli 1111

iimikkik m amid

Ill I Ili Ill

Ill P. III 1111 II IIII

111 Ilk

111

1111 III III

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

RR November 2004 Days From Spud

o

100

200

300

400

500

600

700

800

900

1000

1100

~ 1200 t

1300 0

1400

1500

1600

1700

1800

1900

2000

2100

2200

2300

2400

2500

WELL: HQPG-MIGUASHA No.1

SURFACE LOCATION:

DATE PREPARED: 04 09 28

ELEVATIONS: GL: 20.0 m* KB: 24.5 m'

INFORMATION STATUS: Confidential


CBISSETT RESOURCE CC JULTANTS LTD.

2.9.1 STICK DIAGRAM - OPTION 1: WITHOUT INTERMEDIATE CASING

~

311.2 Retip Gel Chemical

MD: 1080 - 1140

Kg/m 3

VIS: 45 - 60 Sec/L

PH: 9.0 - 9.5

Press. Grad.

(kPa/m)

10 15 20

Deviation

(degrees)

0 1 2

Logging

Suite Mud Type Properties

Hole

Size

(mm)

Est.

Depth

(m KB)

Drill 222.3 mm main hole to the total

depth ±1800 m KB.

Perform directional survey

every 100 m.

Indian Point Formation might contain

gas.

take side wall cores as required.

DST's may be run after logging

Set 139.7 mm OD production tubing

and cement full length with plug and

pump method or abandon by placing

plugs in the wellbore.

222.3

V 0 ~

J z U

Tri-Cone Gel Chemical

MD: 1080 - 1140

Kg/m3

VIS: 45 - 60 Sec/L

PH: 9.0 - 9.5

' estimated

1 - Primary Zone

2 - Secondary Zone

Drill 311.2 mm, set 244.5 mm OD

surface casing at±300 m KB and

cement full length with plug and

pump method.

A total gas detector will be run

from the surface to total depth.

50.0

150.0

300.0

Conductor

Drill 444.5 mm hole and set

339.7 mm OD conductor pipe

to ±20 m KB.

Bonaventure FM

Escuminac FM

conglomerate-sandstone-clay

Lagarde FM


Lagarde FM'


SURFACE CASING POINT

450.0

915.0

1420.0

1800.0

Indian Point FM1

West point FM?

chalk/limestone-siltstone

volcanic?

Gascon or Mann FM

sandstone-siltstone

La Vielle or White Head FM'

chalk/limestone-siltstone

TOTAL DEPTH

Bit Type Program Highlights Formations

1111111 11I

=11

i

CBISSETT RESOURCE CC ..iULTANTS LTD.

ELEVATIONS: GL: 20.0 m* KB: 24.5 m*

INFORMATION STATUS: Confidential

2.9.2 STICK DIAGRAM - OPTION 1: WITH INTERMEDIATE CASING WELL: HQPG-MIGUASHA No.1

SURFACE LOCATION:

DATE PREPARED: 04 09 28

04 09 30 Section 2.0, Page 14 HQPG-MIGUASHA No.1

Tri-Cone Gel Chemical

MD: 1080 - 1140

Kg/m3

VIS: 45 - 60 Sec/L

PH: 9.0 - 9.5

1800.0 TOTAL DEPTH

1420.0

155.6 Air

Bits

Air Drilling

Press. Grad.

(kPa/m)

10 15 20

Deviation

(degrees)

0 1 2

Logging

Suite Mud Type Properties

Hole

Size

(mm)

Est.

Depth

(m KB)

Bit Type

Conductor

Drill 444.5 mm hole and set

339.7 mm OD conductor pipe

to ±20 m KB.

Bonaventure FM

Gel Chemical

MD: 1080 - 1140

Kg/m3

VIS: 45 - 60 Sec/L

PH: 9.0 - 9.5

Drill 311.2 mm, set 244.5 mm OD

surface casing at ±300 m KB and

cement full length with plug and

pump method.

Retip 311.2

Escuminac FM 11


Lagarde FM 11


Lagarde FM' 11


SURFACE CASING POINT

A total gas detector will be run

from the surface to total depth.

Indian Point FM'

West point FM?

chalk/li mestone-siltsto ne

volcanic?

Drill 222.3 m intermedioate hole to

the depth ±950 m KB.

Set and cementfull length 177.8 mm

OD intermediate casing.

Perform directional survey

every 100 m.

222.3

* estimated

1 - Primary Zone

2 - Secondary Zone

50.0

150.0

300.0

11

11 Take side wall cores as required.

DST's may be run after logging

Gascon or Mann FM

sandstone-siltstone

INTERMEDIATE CASING

450.0

915.0

950.0

La Vielle or White Head FM1

chalkllim estone-siltsto ne

Air drill to total depth at ±1800 m KB.

Set 114.3 mm OD production liner

1800 m x 850 m KB and cement

full length with plug and pump

method or abandon by placing

plugs in the wellbore

Program Highlights Formations

aBISSETT RESOURCE CO. LJLTANTS LTD.

3.0 GEOLOGICAL PROGNOSIS

3.1 ELEVATIONS

Estimated: 20.0 m GL 20.0 m CF 24.5 m KB

Actual: m GL m CF m KB

3.2 PROJECTED GEOLOGICAL MARKERS

Formation

Projected Depth Sample Tops

Lithology Subsea

Elevation m KB Subsea

Elevation m KB

Bonaventure FM 0 24.5

Escuminac FM -25.5 50.0 Cong-SS-Clay

Lagarde Fm * -125.5 150.0 Cong-SS-Clay

Indian Point FM * -425.5 450.0 Chalk-LS-Silts

Gascon or Mann FM -891.0 915.5 SS-Silts

La Vielle or

White Head FM *

-1 395.5 1420.0 Chalk-LS-Silts

TOTAL DEPTH -1 775.5 1 800.0

* Primary objective


J

aBISSETT RESOURCE Ca SULTANTS LTD.

4.0 EVALUATIONS

4.1 GEOLOGICAL SUPERVISION

A Wellsite Geologist will be on location from spud until production casing is set or

abandonment plugs are run.

4.2 CHIP SAMPLES

Two sets of clean, washed and bagged ditch samples (one for Quebec Minister of Natural

Resource and one for Hydro-Quebec) will be taken in 5-m intervals from surface to total depth.

Take two cuts, from the Minister set of samples and put into 10 millilitre flasks, put the rest of

samples into a 500-gram bags.

Take one cut, from the Hydro-Quebec set of samples and put into 10 millilitre flasks, put the

rest of samples into a 500-gram bags.

Sample lag time will be determined by a bottom up time test.

The well name and section of the well sampled will be indicated on all the samples.

Identified samples will be submitted to Quebec Ministry of Natural Resource not later than one

month after drilling is completed.

Bagged samples will be tied in 30-m lots and hang in the light plant or similar facility to dry

before shipping.

The Wellsite Geologist will distribute the bagged samples and flasks.


aBISSETT RESOURCE CC JLTANTS LTD.

4.3 MUD LOGGING

A total gas detector (Infrared or Hot Wire) will be operational from surface casing shoe to final

total depth.

4.4 CORING

Sidewall coring equipment will be on location while running openhole logs. Samples will be

taken based upon wellbore evaluation. Actual sample depths will be provided by the Wellsite

Geologist.

4.5 DRILLSTEM TESTING

Testing will be based on the geological evaluation of wellbore parameters. The testing

procedures should be determined after consultation with wellsite personnel about reservoir

characteristics and hole conditions.

All gas and fluid samples are to be labelled properly, showing: test number, date, sample

point, well name and location.

Gas samples are to be taken in proper containers with all information marked as mentioned

above and pressure and temperature clearly recorded.

Gas and fluid samples are to be forwarded to the appropriate laboratory for analysis, the

Wellsite Geologist will give the instructions on what analyses should be undertaken.

Refer to Subsection 4.8 - Drillstem Testing Services Inspection Checklist.

04 09 30 \.


BISSETT RESOURCE CC ULTANTS LTD.

4.6 OPEN HOLE LOGGING

The following open hole logs will be run:

Log Intermediate Hole Main Hole

BHCS Yes Yes

DIL-SFL Yes Yes

FDC-CNL Yes Yes

MICROLOG Yes Yes

Logging instructions and specifications will be provided by the Wellsite Geologist.

Miscellaneous

• LAS floppy to be generated for all logs run.

• TVD log prints to be generated for all directional sections.

• Run a 60-m repeat section for all logs.

• Run all logging tools at the appropriate speed.

• Where possible and in consultation with the Wellsite Geologist, run standard tool

combinations.

• Use standard logging presentations. Consult Wellsite Geologist for changes in scales or

matrix specifications.

04 09 30 \..


aBISSETT RESOURCE a SULTANTS LTD.

4.7 FLOW TESTING PROCEDURES WHILE AIR DRILLING

Because the main hole section will be possibly drilled with air or air/mist, it will be necessary

to continually monitor for gas in the openhole sections. The following testing procedure

should be conducted.

• Maintain detailed, accurate gas flow records while air or air/mist drilling.

• Stop air drilling operations at the first indication of a gas flow. Accurately measure the flow

rate using a 50.4 mm critical flow prover until the flowing pressure and rate are stabilized.

Conduct subsequent flow tests every 24 hours or when gas rate increases because of

opening additional gas-bearing sections. By closely monitoring flow rate increases,

intervals for completion can be decided with greater confidence and cost savings.

• Conduct tests with the annular preventer closed and the flow directed through the well

control manifold. Install a 50.4 mm critical flow prover on the end of the flare line or on a

test riser. Flow tests should not exceed 30 minutes.

• When conducting a flow test, clear the Kelly, open the flow through the manifold to the flare

pit or 60.3 mm riser. Close the pipe rams, diverting the flow to the flare pit. Estimate the

quantity of gas and select the orifice size that will safely handle the flow rate. Install the flow

prover orifice and cap assembly. Divert the flow through the flow prover.

• The Drilling Supervisor must maintain detailed, accurate records of the flow

rates/pressures and depths when the flow rates increase and information that will be

beneficial when selection completion intervals.

• Before air or air/mist drilling operations are suspended, carefully collect and label two gas

and water samples and forward them to the laboratory for analysis.

04 09 30

HQPG-MIGUASHA No.1 Section 4.0, Page 4 J

aBISSETT RESOURCE C( ULTANTS LTD.

4.8 DRILL STEM TESTING SERVICES INSPECTION CHECKLIST

Drill Stem Testing Services inspection Checklist

prepared by

Bissett Resource Consultants Ltd.

.04 09 30


Well Name & No.

aBISSETT RESOURCE COi.JULTANTS LTD.

DRILL STEM TESTING SERVICES INSPECTION CHECKLIST

Operator Sweet ❑ Sour ❑ Critical sour Service Company Rep.

Date

Contractor ❑

Service Company Inspected by Time Well Activity

ADEQ / INADEQ ADEQ / INADEQ

Contractor Representative

Owner Representative Signature

Signature

Signature Service Company Representative

Check if adequate or inadequate or " - " if not applicable (NOTE: Any INADEQUATE must have an explanation and be corrected)

A. 01 02 03 04 05

SIGNS No Smoking ❑ Designated Smoking Areas ❑

No Vehicles or Unauthorized Persons ❑

Danger High Pressure ❑ H2S (if required) ❑

❑ ❑

❑

❑ ❑

17 18 19

C.

H2S gas detector (manual) SCBAs checked SCBAs checked

GENERAL 20 Motor kills checked

B. PERSONAL SAFETY 21 Motor exhaust water manifolds operational 06 Emergency response plan complete ❑ 22 Safety valve connection checked 07 Prestart-up safety meeting ❑ 23 Control valve actuated 08 CSA-approved hard hats ❑ 24 Flowline including head to manifold, to flare 09 Safety footwear ❑ line, hydro-tested 10 Eye protection ❑ 25 BOP operation tests 11 Ear protection ❑ 26 Well-kill fluid adequate 12 First aid supplies ❑ 27 Pumping/tripping practices observed 13 Certificates according to government regulations

a. H2S ❑ 28 Emergency lighting b. WHMIS ❑ 29 Rig floor ventilation system c. First Aid ❑ 30 Equipment integrity for HZS d. Transportation of Dangerous Goods ❑ 31 Manifold valves set for flow

14 Fire-resistant clothing ❑ 32 Flare pit properly dug 50 m from wellbore 15 Personnel clean shaven ❑ 33 Flare ignition system 16 Fire extinguishers

D. COMMENTS/EXPLANATIONS

NOTE: 1. If separation equipment and oil storage is used, refer to production testing inspection list

2. For rig safety, refer to drilling rig inspection checklist.

Rev. #3, 96 0515

DD

DD

DD

D

❑

CBISSETT RESOURCE CC ,ULTANTS LTD.

5.0 DRILLING BITS AND HYDRAULICS PROGRAM

5.1 GENERAL

The 311.2 mm surface hole and 222.3 mm intermediate/main hole will be conventionally

drilled with tri-cone rock bits or PDC bits if possible. If 177.8 mm OD intermediate casing has

to be set, the 155.6 mm main hole will be air drilled with air hammer bits provided by the

drilling contractor.

This is a wildcat well, the following bit program is only a general guideline:

5.2 SURFACE HOLE - 311.2 mm to ±350.0 m KB

This section will be conventionally drilled, two to three retips will be used. This portion of the

wellbore will be drilled quickly and should not take over 35 to 50 rotating hours.

Interval (m KB)

Bit Type Pump

Nozzles (mm)

WOB (103daN)

ROP (m/h)

RPM Rate (m8/min)

Pressure (kPa)

0 - ±350 (2 bits)

Retip 8 - 12 10.0 100 - 160

5.3 INTERMEDIATE/MAIN HOLE - 222.3 mm TO ±950.0 m or ±1 800.0 m KB

If intermediate casing is not necessary, this section will be conventionally drilled as main hole

to final total depth of ±1 800.0 m KB. If drilling operation become problematic and 177.8 mm

OD intermediate casing has to be set, this section will be conventionally drilled as

intermediate hole to estimated intermediate casing point of ±950.0 m KB. The initial rate of

penetration for this section of the wellbore is estimated to be ±6 m/h and will steadily decrease

until reaching total depth, three to four bits and 700 to 250 rotating hours will be required.

Interval (m KB)

Bit Type Pump

Nozzles (mm)

WOB (10 daN)

ROP (m/h)

RPM Rate (m3/min)

Pressure (kPa)

±350 - ±1 800 (3 or 4 bits)

5:2:7 6 - 12 2 - 6 50 - 120


C BISSETT RESOURCE CC JU LTA NTS LTD.

5.4 MAIN HOLE -155.6 mm From ±950.0 m TO ±1 800.0 m KB

If the 177.8 mm OD intermediate casing has to be set at ±950.0 m KB. The 155.6 mm main

hole will be air drilled with air hammer system. 155.6 mm OD air hammer bits will be supplied

by the drilling contractor.

Interval (m KB)

Bit Type Pump

Nozzles (mm)

WOB (103daN)

ROP (m/h)

RPM Rate (m'/min)

Pressure (kPa)

±950 - ±1 800 (3 bits)

Air hammer bit 2 - 3 10 - 20 16 - 32

04 09 30


MM.

6

1

aBISSETT RESOURCE CC JULTANTS LTD.

6.0 DEVIATION

6.1 TARGET AREA

Bottom hole target area control is not required, the maximum allowed inclination are 1.0° at

surface casing shoe, 3.0° at intermediate casing shoe and 3.0° at total depth.

If the deviation control is problematic, air drilling is proposed in the 155.6 mm main hole

section.

Directional surveys will be run if wellbore drift exceeds 10.0° (Subsection 2.6).


0.BISSETT RESOURCE CG, .JULTANTS LTD.

7.0 CASING AND CEMENTING

7.1 GENERAL PROCEDURES

Visually inspect the casing on the racks for obvious damage in transportation.

Double tally the casing with threads off.

Clean and brush the threads using a fast evaporating solvent. If holding time is excessive,

clean thread protectors will be installed.

Use API-modified thread compound on all casing string connections.

Forward cement mixing water samples to the cementing company for compatibility testing.

L

04 09 30 HQPG-MIGUASHA No.1 Section 7.0, Page 1 I

Cs:ISSETT RESOURCE CC. JULTANTS LTD.

7.2 SURFACE CASING - 244.5 mm OD x ±300.0 m To ±350.0 m KB

General

The 244.5 mm OD casing will be run and cemented full length. A formation leak-off test will

be run to check the cement and determine the formation integrity.

Running and Cementing Procedures

After the 311.2 mm hole is drilled to ±300 m or ±350 m KB, dummy trip to surface and

circulate at least two bottoms up or as dictated by hole conditions.

Dress and run the following casing string:

< one 244.5 mm OD ST&C float shoe

< one joint 244.5 mm OD 53.57 kg/m API Grade J55 Range 3 8RD ST&C new casing

< one 244.5 mm OD ST&C float collar

< ±285 m - 244.5 mm OD 53.57 kg/m API Grade J55 Range 3 8RD ST&C new casing

The surface casing design parameters are outlined in Subsection 7.5.

Drift the casing full length when picking up. Use an API 222.6 mm OD drift mandrel.

Threadlock the float shoe, first casing coupling, float collar and second casing coupling (top

and bottom). Do not tack weld.

Recommended make-up torque:

53.57 kg/m

Minimum 4 010 N•m

Optimum 5 340 N•m

Maximum 6 680 N•m

Install six 244.5 mm cable wall scratchers across joint 1 at 2-m intervals.

Install eight 244.5 mm bow spring centralizers at the centre of joint 1, CC 2, CC 4, CC 8,

04 09 30 HQPG-MIGUASHA No.1 Section 7.0, Page 2 i

CBISSETT RESOURCE CC JULTANTS LTD.

CC 12, CC 16, CC 20 and CC 25.

Install cement basket above closest loss circulation zone to surface if necessary.

Install one 244.5 mm x 311.2 mm Solid centralizer inside the conductor pipe.

Tag total depth with the casing for depth control. Reciprocate in 5-m strokes and circulate a

minimum of two bottoms up.

Spearhead the cement with fresh water. Cement, using sufficient (gauge hole volume ±100%

excess) Class "G" + 2% CaCl2 + 0.75 kg/m3 Celloflake. Excess volume may have to be

adjusted based on hole conditions. Heat mixing water to 15 - 20°C before cementing. Refer to

Subsection 7.8 - Primary Cementing Proposal.

Use top plug, displace with fresh water and bump the plug with 3 500 kPa over final pump

pressure. Release pressure and check for backflow. If the floats fail, pressure up the casing to

final pump pressure and maintain for 6 hours.

Before slacking off, hold 90% of string weight for 6 hours. Cut off the casing. Do not drill out

before standing the cement at least 12 hours.

If cement returns to surface are not achieved, run 25.4 mm OD pipe in the annular area

between the hole and casing and recement to surface.


a3ISSETT RESOURCE CG. JULTANTS LTD.

7.3 PRODUCTION CASING -139.7 mm OD x ±1 800.0 m KB (OPTION 1: WITHOUT

INTERMEDIATE CASING)

General

Conventionally drill 222.3 mm main hole to total depth at±1 800.0 m KB and set the 139.7 mm

OD production casing if hole conditions allow. The production casing string will be cemented

full length.


After logging, run in to casing point and circulate to condition the mud and hole. Circulating

time will be determined by hole conditions. Trip out and rig to run casing.

Dress and run the following 139.7 mm casing string:

1 - 139.7 mm OD 8RD ST&C float shoe

1 - joint 139.7 mm OD, 20.83 kg/m API Grade K55 RGE 3 8RD ST&C new casing

1 - 139.7 mm OD 8RD ST&C float collar

- ±1 785 m 139.7 mm OD 20.83 kg/m API Grade K55 RGE 3 8RD ST&C new casing

Design parameters are detailed in Subsection 7.6.

Drift the casing full length before picking up. Use API 124.1 mm OD standard size drift

mandrel.

Threadlock the float shoe, first casing coupling, float collar and second casing coupling. Do

not tack weld.


20.83 kg/m l

Minimum 1 930 N•m

Optimum 2 560 N•m

Maximum 3 200 N•m

Select cementing hardware based on hole conditions and potential productive intervals.


CrISSETT RESOURCE CG. .JULTANTS LTD.

Fill every fifth joint when running the casing. Break circulation at 1 000 m KB at least one

bottom up or until the cuttings over the shaker screen are minimal. Reciprocate the casing

while circulating.

Finalize the volumes and type of cement as well as the additives after the prodiction casing

point is reached and the well information is examined. Refer to Subsection 7.8 - Primary

Cementing Proposal. The cement volume will be based on caliper log measurement plus 30%

excess.

Request the cementing company to provide a second pumper and supervisor during cement

operations. Manifold both trucks to facilitate mixing and pumping with either pumper if

mechanical problems are encountered. A plug loading cement head will be used.

Heat the mix water to 15°C to 20°C if required.

Reciprocate the casing while placing the cement; use a top rubber wiper plug and bump with 3

500 kPa over final pumping pressure.

NOTE: Use a plug loading head. Do not stop to pump the cement out of the surface lines.

Drop the top plug on the fly.

After bumping the plug, hold pressure for three minutes, then bleed off the pressure and

check to ensure the float is holding. Land the casing in slips holding 90% string weight. If the

floats do not hold, land the casing in slips and maintain 2 000 kPa shut-in surface pressure for

at least eight hours.


.1

i

BISSETT RESOURCE CC .SULTANTS LTD.

7.4 INTERMEDIATE CASING - 177.8mm OD x±950.0 m KB (OPTION 2: WITH INTERMEDIATE

CASING

General

If the 222.3 mm hole stability, deviation, rate of penetration or other conditions be problematic,

consideration will be given to running 177.8 mm OD intermediate casing.


After the open hole logs are run, trip in to total depth with an 222.3 mm bit, circulate a

minimum of two bottoms up or as dictated by hole conditions. Trip out, rig to run casing:

Dress and run the following intermediate casing:

1 - 177.8 mm OD 8RD LT&C PDC drillable float shoe

1 - joint 177.8 mm OD, 38.69 kg/m API Grade K55 RGE 3 8RD LT&C new casing

1 - 177.8 mm OD 8RD LT&C PDC drillable landing float collar

- ±935 m 177.8 mm OD 38.69 kg/m API Grade K55 RGE 3 8RD LT&C new casing


Drift the casing full length before picking up. Use API 156.2 mm OD size drift mandrel.


38.69 kg/m

Minimum 4 080 N•m

Optimum 5 440 N•m

Maximum 6 790 N•m

Select the cementing hardware after the hole conditions and open hole logs have been

evaluated.

Fill every fifth joint when running the casing. Circulate at least two bottoms up or until the

cuttings over the shaker screen are minimal. Reciprocate the casing while circulating.


CIBISSETT RESOURCE CL .SULTANTS LTD.

Finalize the volumes and type of cement as well as the additives after the intermediate casing

point is reached and the well information is examined. Refer to Subsection 7.8 - Primary

Cementing Proposal. The cement volume will be based on caliper log measurement plus 30%

excess.

Request the cementing company to provide a second pumper and supervisor during cement

operations. Manifold both trucks to facilitate mixing and pumping with either pumper if

mechanical problems are encountered. A plug loading cement head will be used.

Heat the mix water to 15°C to 20°C if required.

Reciprocate the casing while placing the cement; use a top rubber wiper plug and bump with 3

500 kPa over final pumping pressure.

NOTE: Use a plug loading head. Do not stop to pump the cement out of the surface lines.

Drop the top plug on the fly.

After bumping the plug, hold pressure for three minutes, then bleed off the pressure and

check to ensure the float is holding. Land the casing in slips holding 90% string weight. If the

floats do not hold, land the casing in slips and maintain 2 000 kPa shut-in surface pressure for

at least eight hours.


J

CrISSETT RESOURCE CC....iULTANTS LTD.

7.5 PRODUCTION LINER -114.3mm OD x ±850.0 m To KB ±1 800.0 m KB (OPTION 2: WITH

INTERMEDIATE CASING)

General

If the 177.8 mm OD intermediate casing is set to ±950.0 m KB, a 155.6 mm main hole will be

air drilled to final total depth and a 114.3 mm OD production liner will be set depending on well

evaluation results.


After the open hole logs are run, trip in to total depth with an 155.6 mm tri-cone rock bit,

circulate a minimum of two bottoms up or as dictated by hole conditions. Trip out.

Dress and run the following production liner:

1 - 114.3 mm OD 8RD LT&C float shoe

1 - joint 114.3 mm OD, 17.26 kg/m API Grade K55 RGE 3 8RD LT&C new casing

1 - 114.3 mm OD 8RD LT&C landing float collar

- ±930 m 114.3 mm OD 17.26 kg/m API Grade K55 RGE 3 8RD LT&C new casing

1 - 177.8 mm x 114.3 mm mechanical liner hanger

- 88.9 mm drillpipe to surface


Drift the casing full length before picking up. Use API 98.4 mm OD size drift mandrel.


17.26 kg/m

Minimum 1 830 N•m

Optimum 2 440 N•m

Maximum 3 050 N•m

Select the cementing hardware after the hole conditions and open hole logs have been

evaluated.


aBISSETT RESOURCE CG ..)ULTANTS LTD.

Maintain a 30 000 daN overpull margin on the drillpipe when running the liner.

Limit trip speed with the liner to 75 seconds per stand of drillpipe.

Break circulation at the intermediate casing shoe. Circulate the last two joints to bottom.

Carefully tag bottom while conditioning the mud. Circulate for a minimum of two bottoms up.

Use mud funnel viscosity of 60 to 80 s/L (or as hole conditions indicate) to place the liner.

Determine the volume and type of cement as well as additives after total depth is reached.

Refer to Subsection 7.8 - Primary Cementing Proposal. The cement volume will be based on

caliper log measurements plus 30% excess.

Heat the mix water to 15° to 20°C if required.

Place the cement, use a top rubber wiper plug and bump 3 500 kPa over final pumping

pressure. Set the liner hanger. Release off the liner, trip out and lay down liner setting tools.

(Do not backwash the excess cement, the cement plug will be drilled out with

completion rig and then be pressure tested at that time).


aBISSETT RESOURCE CC..SULTANTS LTD.

7.6 SURFACE CASING DESIGN

- GENERAL INFORMATION

Well name & location: HQPG - MIGUASHA No.1

Bottom Depth 350.0 m. Top Depth .0 m. Next Casing Depth 1800.0 m. Hole size 311.2 mm Casing size 244.5 mm Casing Data Base CASING.DAT Casing File Name Type of String SURFACE Design Mode SPECIAL

- DESIGN CRITERIA

Collapse Pressure Gradient... 12.000 kPa/m. Collapse Fluid Density. 1223.6 kg/m3 Burst Pressure Grad (@ bot).. 25.714 kPa/m. Formation Pressure kPa Burst Pressure Grad (Q ref).. kPa/m. Reference Depth m. Collapse Safety Factor 1.000 Range of Pipe 3 (12.2) m. Burst Safety Factor 1.000 Minimum Section Length. 85.3 m. Tension Safety Factor 1.600 Inventory considered?.. No

- AVAILABLE CASINGS

Casing

Special Section Grade - Wt - Coupling Cost

Inventory Base Top

1. J-55 53.57 ST&C 60.70 .0

2. J-55 59.53 ST&C 67.59 .0


aBISSETT RESOURCE CC. JULTANTS LTD.

- SELECTED CASINGS

String Design Safety Factors

Casing

Grade - Wt - Coupling

J-55 53.57 ST&C

Length Collapse Tension Burst

(m.)

Base 350.0 350.0 3.32 ******** 2.70

Top .0 ******** 9.53


CrISSETT RESOURCE CG. JULTANTS LTD.

- ENGINEERING

Section Weight Max Overpull Section

Interval Casing in air S.F. = 1.0 Approximate Cost

(m.) Grade - Wt - Coupling

Base 350.0 J-55 53.57 ST&C

Top .0

Total

(daN) (daN) # of joints ($)

18387. 156913. 29 21243

18387. 156913. 29 21243

- OPERATIONS

Make-up Torque Displace

Interval Casing Optimum Minimum Maximum Capacity ment

(m.) Grade - Wt - Coupling (N-m) (N-m) (N-m) (m3/m) (m3/m)

Base 350.0 J-55 53.57 ST&C 5340. 4010. 6680. .04032 .00682

Top .0


Cst,BISSETT RESOURCE CG..JULTANTS LTD.

7.7 PRODUCTION CASING DESIGN - OPTION 1: WITHOUT INTERMEDIATE CASING


Well name & location: HQPG-MIGUASHA No.1

Bottom Depth 1800.0 m. Top Depth .0 m. Hole size 222.2 mm Casing size 139.7 mm Casing Data Base CASING.DAT Casing File Name Type of String PRODUCTION Design Mode SPECIAL

- DESIGN CRITERIA

Collapse Pressure Gradient... 11.278 kPa/m. Collapse Fluid Density. 1150.0 kg/m3 Burst Pressure Grad (@ bot).. 11.000 kPa/m. Formation Pressure kPa Burst Pressure Grad (@ ref).. kPa/m. Reference Depth m. Collapse Safety Factor 1.000 Range of Pipe 3 (12.2) m.

Burst Safety Factor 1.000 Minimum Section Length. 85:3 m. Tension Safety Factor 1.600 Inventory considered?.. No

- AVAILABLE CASINGS

Casing

Special Section


Cost

Inventory Base Top

1. K-55 20.83 ST&C 25.59 .0

2. K-55 23.07 ST&C 27.89 .0

3. K-55 25.30 ST&C 30.84 .0


0..BISSETT RESOURCE CC ,SULTANTS LTD.

- SELECTED CASINGS

String Design Safety Factors =

Casing Length Collapse Tension Burst

Grade - Wt - Coupling (m.)

K-55 20.83 ST&C Base 1800.0 1800.0 1.06 ******** 1.49

Top .0 ******** 2.29


aBISSETT RESOURCE CG. .ULTANTS LTD.

- ENGINEERING

Section Weight Max Overpull Section Interval Casing in air S.F. = 1.0 Approximate Cost (m.) Grade - Wt - Coupling (daN) (daN) # of joints ($)

Base 1800.0 K-55 20.83 ST&C

Top .0

36769. 47331. 148 46062

Total 36769. 47331. 148 46062

- OPERATIONS

Make-up Torque Displace Interval Casing Optimum Minimum Maximum Capacity ment


Base 1800.0 K-55 20.83 ST&C 2560. 1930. 3200. .01273 .00266 Top .0


aBISSETT RESOURCE CG...>ULTANTS LTD.

7.8 INTERMEDIATE CASING DESIGN - OPTION 2: WITH INTERMEDIATE CASING


Well name & location, HQPG-MIGUASHA No.1

Bottom Depth 950.0 m. Top Depth .0 m.

Next Casing Depth 1800.0 m.

Hole size 222.2 mm Casing size 177.8 mm

Casing Data Base CASING.DAT Casing File Name

Type of String INTERMEDIATE Design Mode SPECIAL

- DESIGN CRITERIA

Collapse Pressure Gradient... 11.278 kPa/m. Collapse Fluid Density. 1150.0 kg/m3

Burst Pressure Grad (® bot).. 11.000 kPa/m. Formation Pressure kPa

Burst Pressure Grad (® ref).. kPa/m. Reference Depth m.

Collapse Safety Factor 1.000 Range of Pipe 3 (12.2) m.

Burst Safety Factor 1.000 Minimum Section Length. 85.3 m.

Tension Safety Factor 1.600 Inventory considered?.. No

- AVAILABLE CASINGS

Casing Special Section


Cost

Inventory Base Top

1. K-55 38.69 LT&C 46.23 .0


aBISSETT RESOURCE CC ..5ULTANTS LTD.

- SELECTED CASINGS

String Design =____ ___= Safety Factors =


K-55 38.69 LT&C

Length Collapse Tension Burst

(m.)

Base 950.0 950.0 2.78 ******** 1.73

Top .0 ******** 4.95

04 09 30

~


aBISSETT RESOURCE CC. .DULTANTS LTD.

- ENGINEERING


Interval =____= Casing == in air S.F. = 1.0 Approximate Cost

(m.) Grade - Wt - Coupling (daN) (daN) # of joints ($)

Base 950.0 K-55 38.69 LT&C 36045. 142355. 78 43918

Top .0

Total

36045. 142355. 78 43918

- OPERATIONS


Interval ====== Casing Optimum Minimum Maximum Capacity ment


Base 950.0 K-55 38.69 LT&C

Top .0

5440. 4080. 6790. .01996 .00493


CBISSETT RESOURCE CL .. ULTANTS LTD.

7.9 PRODUCTION LINER DESIGN - OPTION 2: WITH INTERMEDIATE CASING


Well name & location: HQPG-MIGUASHA No.1

Bottom Depth 1800.0 m. Top Depth 850.0 m. Hole size 155.6 mm Casing size 114.3 mm Casing Data Base CASING.DAT Casing File Name

Type of String LINER Design Mode SPECIAL

- DESIGN CRITERIA

Collapse Pressure Gradient... 11.278 kPa/m. Collapse Fluid Density. 1150.0 kg/m3 Burst Pressure Grad (@ bot).. 11.000 kPa/m. Formation Pressure kPa Burst Pressure Grad (@ ref).. kPa/m. Reference Depth m.

Collapse Safety Factor 1.000 Range of Pipe 3 (12.2) m.

Burst Safety Factor 1.000 Minimum Section Length. 85.3 m.

Tension Safety Factor 1.600 Inventory considered?.. No

- AVAILABLE CASINGS

Casing

Special Section


Cost

Inventory Base Top

1. K-55 17.26 LT&C

27.89 .0


aBISSETT RESOURCE CG. JULTANTS LTD.

- SELECTED CASINGS

String Design Safety Factors

Casing Length Collapse Tension Burst

Grade - Wt - Coupling (m.)

K-55 17.26 LT&C Base 1800.0 950.0 1.68 ******** 1.86

Top 850.0 3.16 4.98


J

CrISSETT RESOURCE CG. ,ULTANTS LTD.

- ENGINEERING


Interval Casing in air S.F. = 1.0 Approximate Cost

(m.) Grade - Wt - Coupling

Base 1800.0 K-55 17.26 LT&C

Top 850.0

Total

(daN) (daN) # of joints ($)

16080. 64020. 78 26492

16080. 64020. 78 26492

- OPERATIONS


Interval Casing Optimum Minimum Maximum Capacity ment


Base 1800.0 K-55 17.26 LT&C 2440. 1830. 3050. .00811 .00220

Top 850.0


BISSETT RESOURCE CO. .JULTANTS LTD. CII

7.10 PRIMARY CEMENTING PROPOSAL

Cementing Proposal

Prepared by

Schlumberger

04 09 30 HQPG-MIGUASHA No:1 Section 7.0, Page 22 J

Schlumberger

CEMENTING PROPOSAL HQPG Miguasha No 1

Quebec

for

Bissett Resources HydroQuebec

Andy Clarke Well Services Cell Leader St Johns, Newfoundland Off: 709-748-7910 Cell: 709-682-7144

Service District: Dartmouth, Nova Scotia

Oct 4, 2004

Schlumberger SURFACE CASING

Well Data:

Hole Size: 311.2 mm/ 12'/4'

Casing Size: 244.5 mm / 9 5/8", 36 ppf

Depth: 300 metres

B.H.S.T: 25°C (assumed)

B.H.C.T: 25°C (assumed)

Casing Volume Factor: 0.0403 m3/metre

OH Annular Volume Factor: 0.0291 m3/metre gauge

Cement Slurry:

Class G Cement + 2.0% CaCl2 (= 36 S053/D077 L/tonne) + 0.437 m3/tonne Fresh Water

Density: 1900 kg/m3

Yield: 0.77 m /tonne

Thickening Time: 2 hr: 00 min

Slurry Volume Required:

Tonnage Required:

Preflush/Spacer: 3 m3 fresh water ahead

Other Items: C&A pump unit Bulk Trailer

(300 m X 0.0291 m3/m + 100% XS) = 17.5m3 (13 m X 0.0403 m3/m) = 0.5 m3 Total = 18.0 m3

(18.0 m3 - 0.77 m3/tonne) = 23.4 MT

Oct 4, 2004

Schlumberger COST ESTIMATE

SURFACE CASING

Cementing - Area 73 Mobilization Point : Dartmouth, N.S. Description Quantity List Price Disc ' Net Price Net Amount

Service Charges Pumping Unit to 410 meters (first 4 hrs) 1 Job 2,820.00 30% 1,974.00 1,974.00 Travel Charge, Pump truck, estimate 900 km 8.10 30% 5.67 5,103.00 Travel Charge, Pick-up truck, estimate 900 km 3.60 30% 2.52 2,268.00 Blending Charge 24.0 MT 92.00 30% 64.40 1,545.60 Delivery Charge 21,600 MT-kn 1.84 84% 0.30 6,557.76 Data Acquisition Service 1 Job 920.00 30% 644.00 644.00

Sub-Total Services $18,092.36

Casing Cement Products Class G 23,400 kg 0.76 30% 0.53 12,44.8.80 S001, Calcium Chloride 468 kg 2.95 30% 2.07 966.42 D047, Antifoam 20 I 26.70 30% 18.69 373.80

Sub-Total Tail Products $13,789.02

TOTALJOB COST, DISCOUNTED $31,881.38

Wooden plug Per unit 230.00 30% 161.00 Ribber plug Per unit 555.00 30% 388.50 CemNET, Lost Circulation Material Per kg 48.65 0% 48.65

Oct 4, 2004

Schlumberger LONGSTRING

Well Data:

Hole Size:

Casing Size:

Depth:

Previous Casing:

B.H.S.T:

B.H.C.T:

Casing Volume Factor:

OH Annular Volume Factor:

Csg-Csg Annular Volume Factor:

Cement Tail Slurry: RFC

Density: Yield:

Thickening Time: Compressive Strength:


Tonnage Required:

Cement Lead Slurry: RFC Lite

Density: Yield:

Thickening Time: Compressive Strength:


Tonnage Required:

222.3 mm/8 3/4»

177.8 mm l 7", 26 ppf

1800 metres

244.5 mm/ 95/8"@410m

45°C (assumed)

30°C (assumed)

0.0200 m3/metre

0.0139 m3/metre gauge

0.0155 m3/metre

1740 kg/m3

0.92 m /tonne 3 hr: 00 min 2000 psi @ 24 hrs

(400 m X 0.0139 m3/m + 30% XS) = 7.2 m3 (13 m X 0.0200 m3/m) = 0.3 m3 Total = 7.5 m3

(7.5 m3 _ 0.92 m3/tonne) = 8.2 MT

1530 kg/m3 1.29 m /tonne 4 hr: 00 min 500 psi @ 24 hrs

(1400 m X 0.0139 m3/m + 30% XS) = 25.3 m3 (300 ni X 0.0155 m3/m) = 4.7 m3 Total = 30.0 m3

(30.0 m3 _ 1.29 m3/tonne) = 23.3 MT

Preflush/Spacer: fresh water or chemical wash ahead

Oct 4, 2004

Schlumberger Other Items: 2 x Air Bulk Trailers

Depending on well objectives, fluid loss and dispersant may be required in the tail system

Oct 4, 2004

Schlumberger COST ESTIMATE

LONGSTRING

Cementing - Area 73 Mobilization Point : Dartmouth, N.S. Description Quantity List Price Disc Net Price Net Amount

Service Charges Pumping Unit to 1801 meters (first 4 hrs) 1 Job 5,500.00 30% 3,850.00 3,850.00 Travel Charge, Pump truck, estimate 900 km 8.10 30% 5.67 5,103.00 Travel Charge, Pick-up truck, estimate 900 km 3.60 30% 2.52 2,268.00 Blending Charge 32 MT 92.00 30% 64.40 2,060.80 Delivery Charge 28,800 MT-kn 1.84 84% 0.30 8,743.68 Data Acquisition Service 1 Job 920.00 30% 644.00 644.00

Sub-Total Services $22,669.48

Casing Cement Products RFC Lite 8,200 kg 0.95 30% 0.67 5,453.00 RFC 23,300 kg 0.80 30% 0.56 13,048.00 D047, Antifoam 20 I 26.70 30% 18.69 373.80

Sub-Total Tail Products $18,874.80

TOTALJOB COST, DISCOUNTED $41,544.28

Wooden plug Per unit 160.00 30% 112.00 Rubber plug Per unit 305.00 30% 213.50 CemNET, Lost Circulation Material Per kg 48.65 0% 48.65 D168, Fluid Loss Additive(Liquid) Per kg 22.15 30% 15.51 D167, Fluid Loss Additive(Dry) Per kg 132.2 30% 92.54 D013, Retarder Per kg 8.10 30% 5.67

Oct 4, 2004

Schlumberger SAFETY CONSIDERATIONS

SAFE HANDLING OF CHEMICALS

Chemicals vary greatly in hazardous properties. Some chemicals can be handled safely without any special

protective equipment, while others do require such equipment. Of the materials to be used on this

treatment, special considerations should be given to the following:

RFC / RFC Lite

D47 Liquid Antifoam

S1 Calcium Chloride

D167/D168 FLAC

For further information regarding safe handling guidelines and potential health hazards, please refer to "A

Guide of the Hazardous Properties of Schlumberger Products", a Schlumberger safety publication, and/or to

Schlumberger's Material Safety Data Sheets.

STANDARD HOOK-UP

In addition to the safe handling of chemicals, proper procedures for on-location operations must be followed

to ensure a safely conducted treatment. Schlumberger's publication "Safety & Loss Prevention Standards

5, 9, 11" provides specific information regarding job planning, hook-up, pressure testing, preparation of

fluids, pumping flammable and combustible fluids, emergency shutdown, flowback procedures and other

pertinent information.

Oct 4, 2004

Schlumberger

Cementing - Area 73 Mobilization Point : Dartmouth, N.S.

Quantity -1 List Price

Additional/Optional Products & Services Disc Net Price

Stand-by time, manned, on Pump truck per hour Stand-by time, unmanned, on Pump truck per hour Stand-by time on bulker (after 4 hours) per hour Cement pump unit, additional pumping time per hour subsistence, per day away from Dartmouth per man

Third Party Recharges Discount for service or products not specifically quoted

975.00 30% 682.50 740.00 30% 518.00 340.00 30% 238.00

1,175.00 30% 822.50 335.00 0% 335.00

cost + 30% 30%

This quotation is valid for 60 days and is subject tot the General Terms and Conditions of Schlumberger Canada Limited or to the terms and conditions of a Master Service Agreement if oneis in force between Customer and Schlumberger.

Product volumes and mileage charges are best estimations only. Actual charges based on field report. Applicable Provincial and Federal taxes are not included in the above quotation.

Oct 4, 2004

i

4

h

8

I

aBISSETT RESOURCE CO..JULTANTS LTD.

8.0 DRILL STRING SPECIFICATIONS

8.1 DRILLPIPE, DRILL COLLAR AND DOWNHOLE TOOL INSPECTIONS

Drillpipe

When the intermediate/main hole is being drilled, 114.3 mm 24.70 kg/m Grade E drillpipe will

be used.

If the intermediate casing is necessary to be set, 88.9 mm 19.79 kg/m X95 drillpipe will be

used to drill the 155.6 mm main hole.

It is recommended that the 88.9 mm and 114.3 mm drillpipe will have undergone API

inspections, meeting specifications of RP 7G, Section 10, within the last 90 operating days.

Drill Collars/HWDP

The drill collars/HWDP will be inspected before the start of drilling operations, unless an

inspection was conducted when the rig finished drilling the previous well. Magnetic particle or

ultrasonic inspection may be used for the collar connections. Threads with minor cracks will

be rejected before they can increase in size and pose a serious risk. Drill collars will be

inspected every 200 to 300 rotating hours.

Downhole Tools

Rental downhole tools will be inspected by the rental company before delivery. Subsequent

inspections will be done every 200 to 300 rotating hours.


Main Hole

(Air Drilling)

155.6 mm x (±950m - ±1 800 m KB)

155.6 mm hammer bit

Bit sub, bored for dart float

2-121.0mmRDC

1 - 155.6 mm 3 point string reamer

6-121.0mmRDC

88.9 mm X95 19.79 kglm drillpipe

aBISSETT RESOURCE CG, .JULTANTS LTD.

8.2 BOTTOMHOLE DRILLING ASSEMBLIES

Surface Hole

(Conventional Drilling)

311.2 mm x ±300 m KB

Main Hole


222.3 mm x (±300 m -±1 800 m KB)

Intermediate Hole


222.3 mm x (±300 m -±950 m KB)

311.2 mm tri-cone bit 222.3 mm tri-cone bit mm 222.3 mm tri-cone bit mm

Bit sub Bit sub Bit sub

2 - 254.0 mm RDC 1 - 222.3 mm combination 3 point reamer /stabilizer

1 - 222.3 mm combination 3 point reamer /stabilizer

1 - 311.2 mm non-rotating stabilizer

1 - 177.8 mm short RDC (3 m) 1 - 177.8 mm short RDC (3 m)

1 - 254.0 mm RDC 1 - 215.9 mm integral-blade stabilizer 1 - 215.9 mm integral-blade stabilizer

3-215.9mmRDC 1-177.8mmRDC 1-177.8mmRDC

1 - 215.9 mm integral-blade stabilizer 1 - 215.9 mm integral-blade stabilizer

1-177.8mmRDC 1-177.8mmRDC

1 - 177.8 mm drilling jar 1 - 177.8 mm drilling jar

Crossover sub 18 - 177.8 mm RDC 18 - 177.8 mm RDC

Crossover sub Crossover sub

114.3 mm 24.70 kg/m Grade E drillpipe

114.3 mm 24.70 kg/m Grade E drillpipe 114.3 mm 24.70 kg/m Grade E drillpipe

04 09 30


CBISSETT RESOURCE CG ,ULTANTS LTD.

9.0 WELLHEAD AND WELL CONTROL EQUIPMENT

9.1 GENERAL

The BOP stack is a 279 mm, 21 000 kPa BOP stack configurations assembly consisting of a

drilling spool with lower kill and choke lines, double gate blind/pipe ram, annular preventer and

rotating head.

9.2 WELLHEAD

The casing bowl is an 279.4 mm x 244.5 mm nominal, 21 000 kPa PSL 1 slip-on casing bowl

(with locking screws). The bowl will have 2 - 52.4 mm x 21 000 kPa studded side outlets,

equipped with 1 - 52.4 mm x 21 000 kPa blind flange on one side and 1 - 52.4 mm x 21 000

kPa gate valve on another side.

After the production casing/liner is run and the blowout preventer stack is removed, the

following wellhead/christmas tree assembly will be installed:

1 - 279.4 mm 21 000 kPa x 179.4 mm 34 500 kPa tubing head with 2 - 52.4 mm studded

side outlets, equipped with 1 - 52.4 mm 21 000 kPa PSL-1 flanged gate valve on each

outlet

1 - 179.4 mm 34 500 kPa x 52.4 mm 34 500 kPa PSL-1 double studded tubing

bonnet with 60.3 mm EUE suspension thread

1 - 52.4 mm 34 500 kPa PSL-1 flanged gate valves

1 - 52.4 mm 34 500 kPa x 52.4 mm 34 500 kPa x 60.3 mm EUE internal thread PSL-1

flow tee

1 - 12.7 mm 69 000 kPa straight needle valve

04 09 30


aBISSETE- RESOURCE CG. ,ULTANTS LTD.

9.3 BOP STACK ARRANGEMENT

Intermediate/Main Hole - 222.3 mm From ±300.0 m KB to ±950.0 m or ±1 800.0 m KB

The initial stack configuration for conventional drilling the intermediate/Main hole will be as

follows from the bottom up:

279.4 mm x 244.5 mm 21 000 kPa slip-on casing bowl (Subsection 9.2)

279.4 mm 21 000 kPa drilling spool complete with flanged side outlets with 2 - 76.2 mm 21

000 kPa full opening gate valves on the kill line side, and 1 - 76.2 mm 21 000 kPa full opening

gate valve plus 76.2 mm 21 000 kPa full opening HCR valve on the manifold side

279.4 mm 21 000 kPa 114.3 rnm double gate pipe/blind ram

279.4 mm 14 000 kPa annular preventer


C BISSETT RESOURCE CG..JULT ANT S LTD.

Main Hole -155.6 mm From ±950.0 m to ±1 800.0 m KB

If a 177.8 mm OD intermediate casing is set, then use the following BOP configuration to air

drill the 155.6 mm main hole from the bottom up:

279.4 mm x 244.5 mm 21 000 kPa slip-on casing bowl (Subsection 9.2)

279.4 mm 21 000 kPa drilling spool complete with flanged side outlets with 2 - 76.2 mm 21

000 kPa full opening gate valves on the kill line side, and 1 - 76.2 mm 21 000 kPa full opening

gate valve plus 76.2 mm 21 000 kPa full opening HCR valve on the manifold side

279.4 mm 21 000 kPa 114.3 mm double gate pipe/blind ram

279.4 mm 14 000 kPa annular preventer

346.1 mm 21 000 kPa rotating head with 152.4 mm OD flanged blouie line


aBISSETT RESOURCE CO, .JULTANTS LTD.

Miscellaneous

The accumulator master controls for the BOP stack will be installed at a remote location from

the rig floor.

Controls on the BOP closing unit should be in neutral position and not in the open position

with pressure on the hydraulic lines.

The ability to tie-in an auxiliary hydraulic power source will be provided. For this reason, the

accumulator bottles and pump must be isolated from the tie-in point.

The accumulator will have enough capacity to open the HCR valve, close the annular

preventer on the drillpipe and close, open and close one ram preventer. The final accumulator

pressure will be 8 400 kPa or greater.

Equipment through which the bit must pass will be as large as the inside diameter of casing

that is being drilled through.

The BOP stack will be kept free of mud and ice and will be stabilized in position using turn

buckles attached to the substructure.


aBISSETT RESOURCE CC. JULTANTS LTD.

9.4 CHOKE MANIFOLD SYSTEM

• 101.6 mm nominal 34 500 kPa choke and kill line manifold.

• 101.6 mm choke block with 5 outlets

• two 19.1 mm 34 500 kPa manual chokes

• five 50.8 mm 34 500 kPa gate valves

• two 101.6 mm 34 500 kPa gate valves

• 101.6 mm 40 m vent line.

9.5 PRESSURE TESTING

General

The mechanical working condition of the blowout prevention system must be verified every 24

hours (Q.C.1539-88, s. 30.)

Surface Casing/BOP Stack/Manifold

Pressure test the surface casing (water filled) to 1 400 kPa low and 7 000 kPa high for 10

minutes each before the cement is drilled out.

Set the test plug; pressure test the BOP stack, well control lines, kill lines and manifold to

1 400 kPa low and 21 000 kPa high for 10 minutes each. Pressure test the annular preventer

to 7 000 kPa maximum.

If the intermediate/main hole requires more than 30 days, set a retrievable bridge plug at

±280 m KB and pressure test the surface casing(waterfilled) to 1 400 kPa low and 7 000 kPa

high for 10 minutes each.

Pressure test the flare lines (manifold to flare pit) to 1 400 kPa low and 3 500 kPa high for 10

minutes each.


aBISSETT RESOURCE CG, .JULTANTS LTD.

Intermediate/Production Casing/BOP Stack/Manifold

Pressure test the intermediate casing (water filled), BOP stack, well control lines, kill lines and

manifold to 1 400 kPa low and 21 000 kPa high for 10 minutes each before the cement is

drilled out.

Pressure test the annular preventer to 7 000 kPa maximum.

Intermediate Casing/Wellhead

After production casing/liner is set and cemented, the BOP stack is removed and the well

suspension capping assembly is installed, pressure test the intermediate casing, wellhead

and christmas tree to 21 000 kPa for 10 minutes (water filled).

9.6 DEGASSING SYSTEM

A 660.4 mm remote degasser unit will be available after converting the air drilling to

conventional drilling operation. The degasser is NACE certified with 88.9 mm OD inlet, 273.1

mm OD overflow outlet and 168.3 mm OD x 45 m vent line.

9.7 AUXILIARY EQUIPMENT

Inside BOPs

Upper and lower kelly cocks will be used for the entire well.

A dart float will be used for the entire well.


4 BISSETT RESOURCE CO, .JULTANTS LTD.

10.0 WELL CONTROL AND SAFETY

10.1 GENERAL WELL CONTROL AND SAFETY PROCEDURES

Well control procedures will utilize the methods and procedures taught by the Petroleum

Industry Training Service (PITS) in their First Line Supervisor's Blowout Prevention and the

Second Line Supervisor's Well Control Training programs. The Drilling Foreman and the Rig

Managers must have valid PITS second line well control tickets.

The Drilling Supervisor will ensure that all the following procedures are completed

when necessary.

Minimum Certification

Position PITS

2 nd Line PITS

1 st Line First Aid & CPR

H2S Alive

WHMIS TDG

Drilling Supervisor X X X X X X

Rig Managers X X X X X X

Drillers X X X

Derrickmen X X

Motormen X X

Floorhands X X

Mud Loggers X X

Wellsite Geologist X X

Drilling Fluid Super. X X X X

All Support Personnel X X

FORMATION LEAK-OFF PRESSURE TESTING

Perform a low rate casing shoe integrity test after 5.0 m of new hole is drilled below the

surface casing shoe and intermediate casing shoe. Ensure that accurate pressure gauges

with good sensitivities are used. Do not exceed a maximum pressure gradient at the surface

casing shoe of 22.6 kPa/m and 18.1 kPa/m at the intermediate casing shoe during the test

(water filled).

04 09 30 \.

HQPG-MIGUASHA No.1 Section 10.0, Page 1 i

41BISSETT RESOURCE CO, _,ULTANTS LTD.

DRILLS

Regularly conduct BOP drills to ensure that all crew members are familiar with their positions,

duties and responsibilities during a kick.

Fill out the appropriate forms for all drills.

The On-duty Rig Manager, and the On-duty Drilling Supervisor will be present at all drills.

SAFETY MEETINGS

Regularly conduct safety meetings to familiarize crew members with general drilling

operational safety. Fully document each safety meeting on the Jobsite Health and Safety

Meeting Report form.

DRILLING RIG INSPECTIONS

Each Rig Manager and each Drilling Supervisor will conduct daily walk-around rig inspections.

Record information in the tour book and initial.

The Day Drilling Supervisor and the Day Rig Manager will conduct a weekly rig inspection.

Record on the Weekly Drilling Rig Check Guide form and sign into the tour book. Conduct a

detailed rig inspection before drilling out below the surface casing.

TRIPPING PROCEDURES

Use a ±3.0 m3 trip tank equipped with a readout that can be seen from the Driller's console for

measuring hole fill on trips. The trip tank will be designed so that a level change of 25.0 mm is

equivalent to a volume change of no more than 0.075 m3. The measuring device will be

sensitive to a volume change of less than 0.10 m3.


BISSETT RESOURCE CC ,ULTANTS LTD.

Flow Checks

A five-minute flow check will be conducted while drilling with liquid and recorded in the Tour

Report as follows:

• Trip Out

after pulling the first 5% of the drillpipe

at mid-point depth of the wellbore

before the drill collars are pulled

after the drill string is out of the hole

• Trip In

upon reaching the surface casing shoe with the drill string

at mid-point of the wellbore

KICK DETECTION

Position Pit Volume Totalizer to monitor the mud volume (Provide warning at driller's position

of a change of mud tank level).

Visually check tank levels to detect any early signs of a kick.

Conduct flow checks.

Visually check tank levels to detect any early signs of a kick.

Maintain accurate trip records and current Well Control Work Sheets.

Post prerecorded data in the doghouse and control manifold house using the Well Control

Data Report form. Prerecorded data will include reduced rate pump pressure and speed,

maximum allowable casing pressure, mud density, pit volume and gauge hole volumes.

04 09 30


l

BISSETT RESOURCE CC JULTANTS LTD.

10.2 SPECIAL SAFETY CONSIDERATIONS WHILE AIR DRILLING

A safety program similar to the programs for conventional mud drilling will minimize potential

hazards during air drilling operations. The absence of a mud column in the wellbore and the

constant possibility of flammable mixtures of air and natural gas necessitates the following

safety procedures while air drilling.

• Illuminate wellheads, BOP and cellars with flood lights. Locate the flood lights as far away

as possible while still maintaining good illumination.

• Maintain 1.5 times hole volume of water or drilling fluid for immediate use if well killing

becomes necessary.

• Ensure all chain guards are solidly built and oil-bathed.

• Use only spark-resistant tools when gas is encountered. Keep tool joints and Kelly

bushings lubricated. Keep all clutches properly adjusted to eliminate sparks.

• Do not enclose the substructure and maintain adequate ventilation to prevent the

accumulation of natural gas.

• Have available on location an adequate amount of well maintained fire protection

equipment.

• Post air drilling warning signs at each approach to the location, at least 100 m from the well

centre. Ensure visitors are aware of the fire rules.

• If possible, place a trailer or small shack at a safe distance from the rig where personnel

can leave matches, cigarettes, cigars and so on. Smoking will only be permitted in this

building.

• Park vehicles and equipment at least 25 m from the well centre.

• If possible, use a fluted annular preventer to prevent solids accumulation on top of the

element. If not available, blow the solids accumulation of the top of the element, once a

tour.

• Ensure the choke manifold is constructed so that the two chokes can be put into operation

without shutting in the flow. Equip the choke manifold with appropriate pressure gauges for

recording the casing pressure. Ensure drillpipe pressure readings are available at the

choke manifold and casing pressure readings are available at the remote choke panel on

the rig floor.

• Ensure the kill lines and well control lines are flanged and constructed of steel. Screwed

fittings are not acceptable. Ensure all direction changes are right-angle connections

constructed of running tees and crosses blocked on fluid turns.

• Stake or weigh down all flare lines and lay lines in a straight line.


0,BISSETT RESOURCE CC JULTANTS LTD.

• Install the accumulator/master controls for the BOP stack at a location that is remote from

the rig floor. Ensure all BOP lines and connections are constructed of steel. Ensure

hydraulic hoses under the substructure are fire-resistant.

• Equip the drill string with duplicate bottomhole floats and one vented string float. Check the

floats on each trip. Repair if necessary.

• Ensure the air drilling equipment is equipped with all normal safety features

• Size the blouie line to ensure discharge of cuttings, air, foam, water and gas. Anchor for

safety and extend at least 50 to 60 m from the wellbore. Place at a right-angle to the

prevailing downwind side of the location if possible and equip with a pilot light that remains

lit during drilling and tripping.

• Establish an education program, safety routine and inspection checklist to acquaint all

personnel with air drilling operations.

10.3 RECOMMENDED WELLSITE LAYOUT

Regional wind data indicates that the winds are most prevalent from the west and southwest

during the year. Therefore, all wellsite trailers will be located on the southwest portion of the

lease and flare pit will be located on the Northeast portion of the lease. The prevailing wind

data for the Charlo NB areas on the following pages has been provided by Environmental

Canada - Commercial Weather Services.

04 09 30 \.

HQPG-MIGUASHA No.1 Section 10.0, Page 5 .1

JANUARY

CHARLO A NB

1974 - 2003 P1 Envinanment Environnement E Canada Canada

WINDROSE

pIR FREO % SPEED km/h N 0.7 9.0 NE 1.2 12.9 E 12.8 17.2 SE 2.2 10.1 S 1.2 8.0 SW 15.7 12.3

W 48.6 19.6 NW 4.6 17.3

%CALM 13

Page 1

FEBRUARY

CHARLO A NB

1974 - 2003 pi Environment Environnement Canada Canada

WINDROSE

pIR FREQ $ ,SPEED km/h N 1.3 8.6 NE 2.1 10.4 E 15.4 17.2 SE 2.1 9.0 S 1.3 8.4 SW 14.7 11.9

W 45.8 19.6 NW 6.4 19.0

%CALM 11

Page 2

1974 - 2003 MARCH CHARLO A NB

WINDROSE

AIR FREO % BPEED km/h N 2.7 11.7 NE 3.8 11.6 E 22.0 16.7 SE 2.7 11.5 S 1.2 7.8 SW 11.3 11.4 W 36.1 20.2 NW 9.1 19.3

%CALM 11.1

tai Environment Environnement Canada Canada

~

Page 3

▪ FREQ -4J—SPEED km/h

S

APRIL

CHARLO A NB 1974 - 2003

WINDROSE

PIE FRRO % SPEED km/h N 3.1 12.5 NE 4.7 11.0 E 28.1 17.6 SE 3.7 12.2 S 1.6 8.5 SW 10.3 10.3 W 27.5 17.7 NW 10.1 17.8

%CALM 11.0

VI Environment Environnement Canada Canada

Page 4

II H Environment Environnement

Canada Canada

SW 10.8 10.8

MAY CHARLO A NB 1974 — 2003

/ , , 1

59, .----- -

--- 40 .-- .....- ------

30. , - --- 20- , - A:0

P'•:„.._ 4.4 e -;.,...

N

.

-

-

. ,,,,........-

v..—__.

--- NE

. \ ,

WINDROSE

DXR FEED % SPEED km/h N 4.2 11.1 NE 7.8 11.3 E 29.9 16.9 SE 4.9 13.1 S 2.2 9.0

W 21.2 16.1 NW 9.0 17.7

%CALM 10.1

-.9......FREQ %

...O.-SPEED km/h , .

' , . ,

-, ,',2iTZZT-

.

''---

s

, --

,-- .---"-

,

/

, : E

Page 5

1,00 Environment Envimnnement Canada Canada

JUNE CHARLO A NB 1974 - 2003

WINDROSE N 5Q. ..

NW40,- ,,

_, NE

DIR FREO % SPEED km/h 30.._,

N 3.6 10.4 NE 6.8 10.6

20,- ,

E 24.3 15.4 ! ;Vb~ FREQ~ % SE 3.9 10.9

W ' ~,~~

E S 2.2 8.4 ~ ~ -♦~~~~ . ~

~SPEED km/h SW 13.6 11.2 4r1ri' W 24.8 15.1 NW 8.5 16.4 "

%CALM 12.5 Sw -'SE

s

Page 6

JULY

CHARLO A NB

1974 - 2003 IA Environment Environnement Canada Canada

WINDROSE

PIE FREO % SPEED km/h N 3.1 8.7 NE 6.8 9.7

E 19.2 13.5 SE 2.7 9.2 S 2.2 8.2 SW 16.7 10.9 W 29.4 14.4 NW 6.8 15.6

%CALM 13.2

Page 7

AUGUST

CHARLO A NB

1974 - 2003 I

en Environment Environnement II Canada Canada

WINDROSE

DIR FREO % BPEED km/h N 3.0 8.8 NE 5.3 9.2 E 15.6 13.4 SE 2.5 9.9 S 2.0 8.1 SW 19.2 10.3

W 31.5 13.9 NW 7.0 15.4

%CALM 13.8

Page 8

SEPTEMBER

CHARLO A NB

1974 - 2003 114,1Environment Environnement Canada Canada

WINDROSE

PIE FREO $ ,SPEED km/t} N 2.2 8.4 NE 4.4 9.9 E 14.9 13.2 SE 2.9 9.0 S 2.3 8.0 SW 18.8 10.9 W 34.3 15.4 NW 7.2 16.0

%CALM 12.9

Page 9

14611 Environment Environnement -r E Canada Canada

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I 0 Environment Environnement

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%CALM 12.0

Page 13

C.BISSETT RESOURCE CG. JULTANTS LTD.


11.1 GENERAL

The 311.2 mm surface hole will be conventionally drilled with a gel slurry drilling fluid system.

If the intermediate casing is not necessary, the 222.3 mm main hole will be conventionally

drilled with a PHPA drilling fluid system to final total depth.

If 222.3 mm hole encounter problematic situations during the conventional drilling operation

and a 177.8 mm OD intermediate casing has to be set at ±950.0 m KB, conventionally drill

out the intermediate casing float equipment, conduct formation leak-off test, unload well and

air drill 155.6 mm main to final total depth.

Drilling fluids and cuttings will be disposed at a remote sump.

The relationship of the drilling fluid system to well control activities is very important. The

following items will be available when this well is being drilled:

< Two independent drilling rig mud pumps will be used, each capable of delivering kill

rate fluid volumes and pressures.

< Maintain 1.5 times hole volume of water or drilling fluid for immediate use if well killing

becomes necessary when air drilling.

< Enough weight material will be on location to increase the density of the entire main

hole mud system by 150 kg/m3 if required. Assuming a 1100 kg/m3 starting density,

there will be 370 sxs of barite stockpiled on location.

[ (4 250 kg/ m3) (150 kg/ m3)] [70.0 m3] 4250kg/m3 -1250 kg/ m3 Barite — — 370 sxs

40 kg/sx


0,BISSETT RESOURCE CG JULT ANTS LTD.

Enough lost circulation material will be on location to treat 150% of the active drilling fluid

system. The amount will depend on the type of LCM selected.

Refer to Subsection 11. 2 - Drilling Fluid Proposal.


CrISSETT RESOURCE CG. ,ULTANTS LTD.


PROPOSED DRILLING FLUID PROGRAM

prepared by

XL FLUIDS SYSTEM


Hydro-Quebec

Petrole at Gaz

HQPG -Miguasha

EXPOLRATION WELL MUD DRILLING 222MM HOLE TO 1800M

Prepared For Dick Bissett Zenon Pylypec

October 1, 2004

]cLFidterns

Technical Program

Contents

1 Statement of objectives, issues, expectations 2 A well typical profile with inclination, casing depths etc 3 Contacts 4 Materials / Cost estimate 5 Technical Program - by interval

5.1 Surface Hole — 311.15 mm hole / 244.5mm casing 5.1.1 Engineering parameters 5.1.2 Lithological description 5.1.3 Problems / Issues 5.1.4 Fluids System description 5.1.5 Chemical concentrations 5.1.6 Mixing procedures 5.1.7 Required fluid properties 5.1.8 Volume estimate 5.1.9 Solids control recommendations 5.1.10 Mud Rings 5.1.11 Gravel / Boulders

5.2 Main Hole — 222.3 mm hole / 139.7 mm casing 5.2.1 Engineering parameters 5.2.2 Lithological description 5.2.3 Problems / Issues 5.2.4 Fluids System description 5.2.5 Chemical concentrations of whole mud system 5.2.6 Mixing Procedures 5.2.7 Required fluid properties 5.2.8 Volume estimate — 5.2.9 Solids control recommendations 5.2.10 Hydraulics recommendations

6 Appendix

6.1 Communication plan 6.2 Procedures and directives from regulatory agencies. 6.3 Comments from Miguasha Quest #1 and Spud Report

1 Statement of Objectives, Issues, Expectations

• Maximize penetration rates while drilling with mud.

• Control potential formation pressures.

• Avoid environmental damage as this program is been undertaken close to an important environmental area.

• Minimize fluid volumes as waste disposal is costly and all waste must be transported off-site.

• Drill in a safe and efficient manner.

• Maintain an adequate supply of Zinc carbonate and SAF-KOTE to treat any potential H2S influx.

• Monitor for potential H2S below 450 m.

2 Well Profile

Hydro-Quebec jlaFluidSysiems Petrole at Gaz

Miguasha #2 UTM NAD 83 Zone 19

FORMATION/PROCEDURE DEPTHS DRILLING FLUID PROCEDURE DAYS / COST

SURFACE HOLE Drill 311.2 mm hole to 300 mMD

Set 244.5 mm Casing

Escuminac FM (Conglom, ss, clay)

Lagarde FM (agglorrnates, wlcanics, clay)

SURFACE CASING PT

mMD KB

50

300

150 JUL

GEL / CAUSTIC Spud with a viscous Gel Chem slurry having an initial viscosity of 60 s/L. Increase if hole cleaning becomes a problem

Keep density below 1150 kg/m3

5 I —

MAIN HOLE Drill 222.3 mm hole

Indian point (chalk,calcareous mst)

West Point (1st, wlcanics, ss)

Gascon or Man FM Sandstone , Siltstone

La Vielle or Whitehead FM chalk/limestone-siltstone

TD

450

915

1420

1800

MUD SYSTEM Drill out and ahead with mud

Possible gas in Indian Point FM and potential for losses between

300m and 950m

Contingency considerations: Water Flow / Losses Pressures 11 kPa/m

Wellbore Stability 1-12S is possible

Gel / PHPA System Density: as low as possible - not

less than 1120 kg/m3 Viscosity: 45 s/I initially. Raise

as required to clean. Yield Point: Initially 5 - 7 Pa

Fluid Loss: Maintain at 10 cc's with PAC

PHPA: Maintain a slight excess (0.4 - 0.5 kg/m3) -

pH: Maintain pH at 10 — 1.5 .

15/—

log and run pipe 5 / —

TOTAL

25 days

Drilling Fluid - Federal Supply Dartmouth - Dave Rose - 1-902-463-8015 Technical - Jim Masikewich 1-403-819-0204

3 Contacts

Technical Support Jim Masikewich — Calgary 1-403-819-0204 Shaun Mesher - Calgary - 1-403-875-7645

Mud Engineers Alan Pippard — Calgary 1-403-804-4863 (cell) 1-403-251-3570 (res)

Don Beaton — Calgary 1-403-863-4450

Udo Zeidler— Calgary 1-403-561-9895 (cell) 1-403-241-9895 (res)

Mud Materials — Dave Rose - Dartmouth 1-902-463-8015 1-902-478-3610(cell)

Sylvan Lacombe Intragaz 1-819-377-8080

Foreman James Shulson 1-403-504-6430 (rig)

Construction Jaques Perron 1-418-571-0144 (cell)

4 Materials I Cost Estimate

Hydro-Quebec Petrole at Gaz Miguasha #1-b Interval 1 Interval 1 Interval 2 Interval 2

Selling Estimated Estimated Estimate Estimated Total Estimated Contingen Contingency Total kg/sack Price List Discount Price Units Cost d Units Cost Units Total Cost cy Cost Loadout kg

Poly Plus (ALCOMER 120L) 20 $426.80 0.36 273.15 BARITE 40 $27.20 0.36 17.41 CAUSTIC SODA BEADS 25 $120.00 0.36 76.80 BACTRON K54 (BACTERIACIDE 208 $777.50 0.36 497.60 CITRIC ACID 25 $173.23 0.36 110.86 DRILL THIN 11.4 $245.03 0.36 156.82 CALCIUM NITRATE 36.4 $87.50 0.36 56.00 KELZAN XCD 25 $859.65 0.36 550.18 BENTONITE 50 $31.83 0.36 20.37 KWICK-SEAL MEDIUM (BAG) 18.14 $79.15 0.36 50.66 SAF-COAT 20 $252.23 0.36 161.42 SAPP 22.7 $244.83 0.36 156.69 SAWDUST (BAG)* 12 $16.65 0.36 10.66 SODA ASH 25 $53.58 0.36 34.29 SODIUM BICARBONATE 22.7 $73.78 0.36 47.22 FIBER FLUID 11.4 $198.00 0.36 126.72 DEFOAM X 20 $384.78 0.36 246.26 POLYPAC UL / DRISPAC 22.7 $511.55 0.36 327.39 LIME (HYDRATED) 20 $21.90 0.36 14.02 ZINC CARBONATE 25 $125.58 0.36 80.37

30 $8,194.50 30 $8,194.50 2 $546.30 32 640

600 $10,446.00 600 24000

2 $153.60 10 $768.00 12 $921.60 5 $384.00 17 425

5 $2,488.00 5 1040

15 $1,662.90 15 375

14 $2,192.28 14 $2,192.28 20 $3,136.40 34 386

30 $1,680.00 30 $1,680.00 10 $560.00 40 1455

25 $13,754.50 25 $13,754.50 5 $2,750.90 30 750

250 $5,092.50 150 $3,055.50 400 $8,148.00 200 $4,074.00 600 30000

30 $1,519.80 30 544

4 $641.08 4 $641.08 32 $5,165.44 36 719

5 $783.45 5 114

15 $159.90 30 $319.80 45 $479.70 50 $533.00 95 1140

10 $342.90 10 $342.90 20 $685.80 5 $171.45 25 625

5 $236.10 5 114

50 $6,336.00 50 568

5 $1,231.30 5 100

25 $8,184.75 25 $8,184.75 5 $1,636.95 30 681

10 $140.20 10 200

30 $2,411.10 30 750

$46,213.29 64625 $5,748.90

$39,133.31 $44,882.21 Estimated Price Terms of Sale: At date of invoice. Products not quoted here will be subject to same discount - 36% Trucking, pallets and shrink wrap charged and returned to operator at cost Restock - Note there will be a 15% restocking charge producte - this does not include re-bagging and re-palletizing Mud engineering service rate is $700.00 / day and $500.00 / day for second man Airfare / Rental Vehicle / Fuel at cost Accomidation on Transfer at cost Technical Support - Jim Masikewich 403-819-0204

5 Technical Program - by interval

5.1 Surface Hole — 311.15 mm hole / 244.5 mm casing

5.1.1 Engineering parameters

Set 20 m of 339 mm conductor. An initial survey of the site shows sand to past a depth of 5 meters, therefore it will be necessary to drill the mouse hole, rat hole and conductor hole with mud. Make up mud to at least 100 s/L viscosity with Gel.

Spud into Tertiary and drill 311 mm hole to 300m then set 244.4mm surface casing. Spud with mud having a minimum viscosity of 60 s/L. Maintain adequate hole cleaning characteristics throughout this hole section.

Miguasha #1 experience significant caving through this section causing stuck pipe. Fishing efforts were difficult due to the continued sloughing. A mud density increase to 1200 kg/m3 was used alongside viscosity increases to over 180 s/L to halt sloughing and allowing a successful casing run.

5.1.2 Lithological description

Typical Tertiary Sequences. Pirate Cove / la Garde (ss, mst, ss, conglomerate), Archibald Settlement (agglormates, volcanics, mst)

5.1.3 Problems / Issues

Water Flow: Significant water flow was encountered at 90m on Miguasha #1 while air drilling. Normal water gradient prevented further influx and no problems were encountered once mud was placed in the hole.

Borehole Stability — Possible gravel sequences be prepared to increase viscosity with Xanthan Gum to provide needed hole cleaning.

Lost Circulation - Ensure there is a reasonable selection of Lost Circulation material available on location. Raise viscosity to 70 - 80 s/L with Bentonite, mix Sawdust: and Kwik Seal (or Prima Seal) 10:1 at 60 - 100 kg/m3.

Pressures - Normal.

Torque / Drag - No problems anticipated.

Differential Sticking - No problems anticipated.

5.1.4 Fluids System description

Initially make up a Bentonite based mud system having a minimum viscosity of 80 s/L to drill the mouse hole, rat hole and conductor hole.

Drill out with a Bentonite system and drill ahead to casing depth. The initial viscosity should be at least 60 s/L. The viscous mud from the conductor hole can be diluted to start as a base. Note: treat the system for cement contamination prior to drilling out of the conductor.

5.1.5 Chemical concentrations

Bentonite: 60 - 80 kg/m3 Caustic: To pH = 8.5

5.1.6 Mixing procedures

Note: We will use water from the sump on the Miguasha Quest #1 site to reduce liquid volumes that need to be dealt with on the disposal. The sump water has been treated with Calcium Nitrate to flocculate solids and it will be necessary to treat out the excess Calcium with Soda Ash prior to mixing Bentonite.

Check make-up water - reduce calcium concentration to below 40 mg/I. Add gel to build viscosity as required. If gravel & boulders or lost circulation is encountered, increase the funnel viscosity with gel alone.

Keep volumes used on surface low, if possible.

5.1.7 Required fluid properties

Viscosity - as required, raise to 80 -100 s/L to log or run casing pH: neutral.

5.1.8 Volume estimate

Interval 1 Bit Size 311 m3/m 0.076 Wash 1.5 m3/m 0.114 Depth 300 Hole 35 Tank 30 Volume @ TD 65 Dump per day 5 Days 4 TTL Dump 20 Volume on interval 85

5.1.9 Solids control recommendations

Solids Control: Run available solids control equipment as soon as possible after mudding up Bentonite. Use 140 - 175 mesh screens.

5.1.10 Mud Rings

Mud Rings: Not anticipated. Suggest that because no additives other than Bentonite are to be added, rising viscosity or tripping to surface will be the best method of controlling mud rings.

5.1.11 Gravel / Boulders

Gravel/Boulders: Suggest raising viscosity to 80+ s/L with Bentonite alone.

5.2 Main Hole — 222.3 mm hole / 139.7 mm casing

5.2.1 Engineering parameters

Drill with a Gel/Polymer system to a total depth of 1800 m. The system will contain an excess of PHPA to inhibit the swelling of clays in the section below 950m. Mud losses are possible in the limestone of the first 650 m of this hole section. If losses occur use as much water from the Miguasha Quest #1 sump to reduce volumes. Note that the sump has been flocculated with Calcium Nitrate and it will be necessary to treat out the excess Calcium with Soda Ash prior to mixing Bentonite.

5.2.2 Lithological description

Indian point (calcareous mst), Harrisson, (1st, volcanics, ss), La Vielle or West point (reef complex with basic volcanics)

5.2.3 Problems / Issues

Solids buildup — Run the centrifuges as required, maintaining the mud weight below 1080 kg/m3 in an effort to maximize the penetration rate.

Lost Circulation - Wildcat well — lost circulation is possible. Maintain a reasonable supply of lost circulation material on location. This would include Sawdust, Kwick Seal, Calcium Carbonate and Fibers.

Abnormal Pressures — Assume 11 kPa/m throughout. As with any Wildcat well, a stockpile of Barite should be maintained on location as a standard, safe drilling practice. Enough barite should be available to densify all the active system drilling mud to 1200 kg/m3 at 222.3 mm TD.

Well bore Stability and Cleaning - Wildcat well — stability and cleaning problems are possible if especially if well bore becomes filled with water. If problems are encountered cleaning, consider running viscosity sweeps. Make sweep large enough to cover 100 -150 m of the annulus - YP as high as can be pumped. If cleaning problems are sustained, consider increasing viscosity of the drilling fluid with additions of Xanvis. If sloughing is encountered, Increase transport ratio to 75 — 80%.

Corrosion - Not anticipated.

Differential Sticking - No problems anticipated.

H2S — possible from Indian point (450 m) — Maintain pH at 10 — 10.5 — Hach test kit available — 30 sacks of ZnCO3 on location as well a 1 pallet of Filming Amine — Safecote. Maintain a concentration of 2 I/m3 in the system after mud up.

5.2.4 Fluids System description

A Gel / PHPA system will be used through to casing point. This system was chosen specifically to provide moderate shale inhibition. Enhanced inhibition will be attained if an excess (.2 - .4 kg/m3) of PHPA is maintained while drilling.

5.2.5 Chemical concentrations of whole mud system:

Natural Bentonite: 35 kg/m3 Caustic: 0.5 kg/m3 PHPA: (0.4 - 0.5 kg excess) PAC: 2.5 kg/m3 Kelzan XCD: "Low end rheology" modification as required

5.2.6 Mixing Procedures

a. Prepare an initial volume of 42m3 in the premix tank. b. Adjust pH with Caustic to 10 —10.5 if required. c. Add Natural Gel to a viscosity of 40 s/I (±30 kg/m3). d. Lower fluid loss with PAC polymer to 10 cc's. e. Control flow properties with appropriate amounts of Xanvis or Desco.

5.2.7 Required fluid properties

Density: 1120 kg/m3 to provide for 11 kPa / m gradient

Viscosity: Maintaining the viscosity at 45 s/I initially. Raise as required to clean. Use prehydrated Bentonite if possible.

Yield Point: Initially 5 - 7 Pa with additions of Bentonite and Kelzan XCD.

Fluid Loss: Maintain at 10 cc's with PAC additions. Observe and record cake characteristics.

PHPA: Once clear of the cement add sufficient Alcomer 120L to achieve a PHPA concentration of 0.5 kg/m3. Maintain a slight excess (0.2 - 0.4 kg/m3) - monitor and record concentrations with each mud check.

pH: Maintain pH at 10 —10.5 throughout the interval.

5.2.8 Volume estimate

Bit Size 222.3 m3/m 0.0388 Wash 1.2 m3/m 0.0466 Depth 1800 Hole 107 Tank 60 Volume @ TD 167 Dump per day 10 Days TTL Dump 150 Volume on interval 317

5.2.9 Solids control recommendations

Solids Control: Run available solids control equipment as soon as possible after drilling out. Suggest using 150 - 200 mesh initially.

5.2.10 Hydraulics recommendations

Transport Ratio: 75% Annular Velocity DP: 42 — 47 m/min Annular Velocity DC: 65 — 75 m/ min Nozzle Velocity: Nozzle Velocity: less than 80 m/s

6 Appendix

6.1 Communication Plan

Mud Reports - Daily reports to be emailed to XL Fluid Systems Inc. office daily.

Inventory Tracking - Inventory to be emailed to XL Fluid Systems Inc. Calgary office every Sunday evening.

Telephone Communication - Monday morning 09:00 MST.

Safety - Safety meetings to be conducted and documented weekly

Unscheduled Meetings - as directed by Bissett or when deviation from program occurs

End of Well Reporting - to be submitted with invoice within 3 weeks of rig release.

By Interval: Explanation of variance to plan Drilling Parameters / bits / lithology review Fluid System review - Performance Fluid System review - Volumes built Fluid System review - Material Concentrations Solids Equipment Review - Workshares where possible Reconcile material usage Include data - lab reports, pilot tests, memos Include / discuss incident reports Recommendations

6.2 Procedures and directives from regulatory agencies

All wastes are to be contained on site throughout the drilling of the well making sure there is no run off on the lease, which could contaminate adjacent land or ground water.

All waste is to be disposed of off-site in approved disposal locations.

6.3 SPUD REPORT & COMMENTS MIGUASHA #1

COMMENTS

• Mud guns in rig tanks must be serviced on the rig move. Make sure they can be moved around the tank and that the jets are all in place prior to putting any water in the tanks.

• Building of a 1m3 tank with hand mixer and hose coupling to attach to mud pump suction is highly recommended. This will enable us to make sweeps using the SUN SWEEP product.

• Use of sweeps would be helpful as this may avoid the need to run real high viscosities while drilling. Once the mud viscosity exceeds 60 s/L the tanks will not gun efficiently and direct mixing to the system is difficult.

• Use water from the main sump on the Miguasha Quest #1 lease for the conductor and surface hole mud systems. There has been a treatment of Calcium Nitrate and Alcomer 120L added to this sump. It will be necessary to treat out excess Calcium with Soda Ash.

• Disposal costs for the fluids are very high as all must be transported off location and passed through a sewage treatment facility. Therefore, the more fluid that can be used from the first sump the better the cost savings.

• A mud order has been placed with Federal Wholesale in Dartmouth NS. Once the new well is spudded and all products have been transferred to the new site this order can be shipped.

• Andre Laundry will organize the trucking of the mud from Dartmouth and we need to give him 36 hours notice.

• Significant, large sized caving occurred on surface hole on the previous well. If was eventually necessary to raise the mud weight to 1200 kg/m3 and the viscosity to 200 s/L to hold the well bore stable and get casing in the hole. Use Kelzan XCD to raise yield point as required.

• Use of liquid Kelzan would be of benefit on this rig due to the poor quality mixing system.

SPUD REPORT

• Fill premix tank with water from sump on previous location and add one sack of Soda Ash. If the mud engineer is on-site he will provide a more accurate amount of Soda Ash required.

• Note: Premix tank holds 2.5m3 for each 0.1 meters of liquid height. At a level that is 0.2 m below the grating the tank holds a volume of 42 m3.

• Add one-half sack of Caustic Soda and mix Natural Gel ( Bentonite) no faster than 5 minutes per sack until a viscosity of 80 s/L is reached.

• Allow mixing for 2 hours then transfer to the active mud tanks.

• Repeat the procedure to fill the premix tank as back up. Transfer mud to active system to build volume as required.

• Use this fluid to drill conductor hole, rat hole and mouse hole.

• Note that if additional viscosity is required for hole cleaning then increase the viscosity in the premix tank to 200 s/L then add to active system.

• Use the same fluid to drill out the conductor and proceed ahead with drilling of the surface hole. Once 10 —15 meters below the conductor the viscosity can be diluted back to 60 s/L if only minimal caving occurs.

• Hole Volume at 300m, assuming a 30% washout is 30 m3.

• Suggest that the Vac Truck following the drilling of the conductor and rat hole/mouse hole clean the shaker tank.

• Run centrifuge periodically to keep mud weight below 1100 kg/m3.

aBISSETT RESOURCE CC,..JULTANTS LTD.

12.0 CONTRACT SERVICES

12.1 CONTRACTORS/SUPPLIERS

Service Company Contact City/Location Telephone Number

Drilling Doubil Inc. Bill Falls Beachville, ON (519) 423-9429

Lease Construction Talk to Jacques Perron

Cementing Schlumberger Andy Clarke Mount Pearl, NL (709) 748-7910

Drilling Fluid XL Fluid Systems Jim Masikewich Calgary, AB (403) 265-4344

Premix Tank To be decided

Logging Schlumberger Robert Harries Dartmouth, NS (902) 481-6419

Mud Logging (gas detector) Chimo Equipment Barry Lakusta Calgary, AB (403) 264-2245

Sidewall Cores Schlumberger Robert Harries Dartmouth, NS (902) 481-6419

Core Analysis To be decided

Fluid Analysis To be decided

Safety Flint Safety Tyler Johnson Red Deer, AB (403) 342-8019

PVT Gear Chimo Equipment Barry Lakusta Calgary, AB (403) 264-2245

Directional Surveys To be decided

Centrifuge MI Swaco Jamie Yakimishyn Calgary, AB (403) 290-5312

Shock Sub/Jars To be decided

Casing Hunting Services Kathy Gerone Calgary, AB (403) 543-4477

Cementing Equipment Use Best In Area James Shulson

Liner Equipment Weatherford Ken Johnson Dartmouth, NS (902) 497-3542

Tongs/Lay Down Weatherford Albert Dorner Dartmouth, NS (902) 497-1564

Wellhead Equipment Ruston Supply Larry Ruston Leamington, ON (519) 326-8884

Supply Company Use best in area

Fishing Tools Weatherford Albert Dorner Dartmouth, NS (902) 497-1564

Trucking (long distance) Trans-Logic Greg Becker Leduc, AB (780) 980-0606

Trucking (local) Use best in area

General Rentals Weatherford

Rainbow Supplies

Ken Johnson

Dave Peter

Dartmouth, NS

Dartmouth, NS

(902) 497-3542

(902) 468-5591

Conductor/Rat Hole Doubil Inc. Bill Falls Beachville, ON (519) 423-9429

Wellsite Trailers Rainbow Supplies Dave Peter Dartmouth, NS (902) 468-5591

Testing - Conventional Baker Hughes Ken Soderberg Calgary, AB (403) 537-3419

Testing - Inflate Baker Hughes Ken Soderberg Calgary, AB (403) 537-3419

Welding AM&S Wafer Inc. Hanley Wafer Nouvelle, QC (418) 794-2672


aBISSETT RESOURCE CG. JULTANTS LTD.

Service Company Contact City/Location Telephone

Number

Air Drilling Hammer Numa Ron Leonard / Thompson, CT (860) 923-9551

Stabilizers Weatherford Ken Johnson Dartmouth, NS (902) 497-3542

Rental Drill Pipe and Collars Doubil Inc. Bill Falls Beachville, ON (519) 423-9429

Casing Accessories Use Best In Area James Shulson

Shale Tanks / Sump Tanks MI Swaco Jamie Yakimishyn Calgary, AB (403) 290-5312

The Drilling Supervisor will approve all field work orders, delivery tickets and invoices, at the

time the service is rendered. Payment of invoices will be delayed if field work has not been

approved.

Instruct service companies to submit invoices that reference full well name and number and

send to:

Hydro-Québec Pétrole et gaz do Bissett Resource Consultants Ltd. 250, 839 - 5 Avenue, SW Calgary, AB T2P 3C8 (403) 294-1888 (24 hours) (403) 263-0073 (Fax)

Attention: Dick Bissett


~

aBISSETT RESOURCE CC JULTANTS LTD.

13.0 DRILLING RIG CONTRACTOR

13.1 DRILLING RIG INVENTORY

CONTRACTOR: DOUBIL INC.

RIG NO: Riq 2


i

DUUBIL INC. RIG 2

20 Rig Skytop Brewster RR600, double drum drawworks, 22" hydromatic brake, 110 ft mast, 275,000 # API rating, 8 line crown, mounted on 5 axle crane carrier, CBLT 5860 transmission, Rebuilt 12V-71 power installed in Nov of 2000.

21 Rig Mat Approx. 42' x 10', pinned to bottom floor sub, rig sits on it to spread out weight, also used to carry small pieces when moving

22 Top Floor Sub (top section of double box sub) Rig Floor/work area with 4' hinged wings, Skytop Brewster RSH 18" rotary table or Ideco 23" rotary table.

23 Bottom Floor Sub (bottom section of double box sub) Approx. 16' x 8' x 5', pinned to rig mat around wellhead, solid plated beams to spread the load of the drilling operation

24 Catwalk Tub Approx. 38' x 8' x 4', approx. weight 16,000 lbs, has centre walk built down the centre for the entire length, storage of tubulars under walk, gratings that fit into the top to make walkway full length both sides 12' hinged V-door with stairs built in

25 Generator House Approx. 40' x 8' x 8', shelves for storage, work bench with 6" vise and bench grinder, Two 208V 3 phase diesel generators mounted inside, a) - 60 kw Sommers with Cummins engine, b) - 60 kw Sommers , with Cummins engine, complete 200 amp service panel, separate dry storage at back of building approx. 6' x 8'

26 Doghouse (sits atop Doghouse Water Tank) Approx. 32' x 8' x 8', insulated house 20' x 8' with lockers, workbench along one wall, two 4' benches with storage underneath, 2" Myers centrifugal water pump, separate 1,900 US gal ULC certified fuel tank. Satellite automatic driller.. mounted to wall

Web Site: www.doubil.com E-mail: [email protected]

DOUBIL INC. RIG 2

27 Doghouse Water Tank Approx. 40' x 10' x 8', 300 bbl capacity fresh water only with 3" heating coil, one 3" suction at back, two 4" suctions at front, hinged 4' walkway full length rig side, 6' x 8' junk rack on tank top in front of doghouse for subs and misc. items.

28 Soap Tank and Fuel Tank skid 60 bbl open top soap tank, 12 bbl trip tank at end of soap tank, hydraulic powered Myers triplex soap pump, hinged 4 ft. walkway along rig side of tank, bbl rack for 2 soap bbls, skidded removable 3,100 US gal fuel tank with ULC certificate, electric fuel transfer pump mounted on tank

53 Mud Tank 3 compartment ( 300 bbl), 2 - 8" pump suctions with air unions, able to suck from any compartment with either pump, mixing guns in each tank, equalizers between tanks, Brandt High 'G' Linear Shaker mounted on one end.

57 Brine Tank Skidded 300 bbl round tank, heater tube inside, 3" discharge on front, 2 open manholes on top with ladders into tank

61 Wilson 600 Mud Pump - 6 %2" by 14" Powered by 60 Series Detroit Diesel (new), 8" suction with Wilson suction flow equalizer, cw selection of liners and pistons, 6 1/2",'6", 5 1/2", 5" and 4".

6. 0 Wilson 600 Mud Pump 6 1/2" by 14" Powered by D 353 Cat (rebuilt), 8" suction with Wilson suction flow equalizer, see 61 above for selection of liners and pistons.

85 Pipe Tubs - three For transporting tubulars, approx. 38' x 8' x 4' - Wt. 10,000 #, plated bottom with 3' plated sides, dp box one end to unload tubulars

Junk Tub For transporting miscellaneous rig equipment Similar to pipe tubs


DOUBIL INC. RIG 2

Pipe Racks

2 sets, to store casing or drill pipe at well site

97 Accumulator Trailer Approx. 20' x 8', 6 station 3 M Koomey with nitrogen backup, 11 (of 14 possible) 11 gal bottles, 2 air pumps & 1 electric triplex pump, remote unit, Mounted in a 45 foot trailer with change room in the front.

91 Toolpusher's Trailer 1996, 10' x30' single ended wheeled Rapid Camp unit

Gas Separator 26" remote degasser unit, NACE certified, approx. 12' x 6' x 8.5, connected to choke manifold, 3" inlet, 10" overflow outlet, 6" vent line by 150' long

Choke Manifold 4" - 5,000 psi 4" choke block with 5 outlets, two 3/4" 5,000 psi manual chokes, five 2" 5000 psi gate valves, two 4" 5000 psi gate valves, 120' of 4" vent line

OTHER EQUIPMENT

Blocks: Skytop Brewster HB 154 - 150 ton, 8 line

Drilling Line: Spool of 3,000 ft of 1 1/8" cable

Swivel: Skytop Brewster 6SX - 220 ton

Kelly: 4 1/4" square x 40'

Kelly Hose: 4" x 55', 10,000 psi rating

Kelly Spinner: Foster look-a-like Hydraulic Kelly Spinner

Drill Pipe Spinner: Finn P-700 2 7/8" to 7" Hydraulic Pipe Spinner


DOUBIL INC. RIG2

Weight Indicator: Martin Decker Clipper

Bails: 96" x 3 1/2"

Elevators: 4 '/2" drill pipe, 150 ton, King Oil Tool, WTM 7" casing, double latch, side door, CSO 4 '/2" casing, King Oil Tool

Slips: 4 '/z" Wooley 5 '/2 " Wooley 7" Baash Ross C-1 10" Baash Ross UC 4

Tongs: BV Type 'C' Tongs, 42" arms, Jaws 2 7/8" thru 10 3/4" Web Wilson, AAQ, Jaws from 8 5/8" thru 13 3/8"

Boiler: Cleaver Brooks, 30 hp, 100 psi boiler mounted in a steel house with 4400 litre water tank and 1900 litre fuel tank. Unit is self contained with 35 kw 208V 3 phase generator to run boiler and steam heater fans.


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SOAP TANK

FUEL TANK

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CENTRE TUB

MILD PUMP #2

BOOSTER

PRIMARY AIR

RAMP I-

MUD TANK 300 BBL

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RINK TUB'

COLLAR TUB

BRINE TANK 300 BBL ~

MUD PUMP if • i

PIPE TUB, (41h)

PIPE TUB (4'h)

PRIMARY AIR

:Gal HOUSE

drilling, geological and safety contingency plan of …

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