MEDCO

Simulation Results for Well Kalvin Douglas 15H-01 ENCANA

Simulation made using Tubing Analysis System (TAS) software by Modelling Engineering & Development Company
www.medcotas.com Copyright 2011

ENCANA OIL & GAS (USA) INC. NLA COIL TUBING DRILL-OUT PROCEDURE

Kalvin Douglas 15H-1 (Red) Kalvin Douglas 15H-2 (Blue)

RED RIVER PARISH AFE: 10147851 & 10147853 PREPARED BY: Steve Koszewski

Coil Tubing Drill-Out Procedure

Objectives To safely and efficiently clean-out the wellbore of any composite bridge plugs or fill that would assist in commingling all fracd zones.

Kalvin Douglas 15H-1

Stages MD TVD BHP BHT Plugs 19 17,214 (FC) 12,293 10,695 psi 330 18 Notes: Well is XP frac design (>100K lbs proppant/cluster). Expect large amounts of sand in lateral. Proceed with caution especially in second half of lateral.

Kalvin Douglas 15H-2

Stages MD TVD BHP BHT Plugs 17 16,770 (FC) 12,309 10,709 psi 330 16 Notes: Well is XP frac design (>100K lbs proppant/cluster). Expect large amounts of sand in lateral. Proceed with caution especially in second half of lateral.

Safety Concerns
Safety is the highest priority Hold wellsite safety meetings prior to each significant operation. Review critical parameters and objectives as well as emergency action plans. Perform JSAs daily for all operations. All contractors are to meet together to discuss JSAs and coordinate work. Each contractor shall have a copy of the JSA on location and shall review with other contractors as they show up on location. Perform location inspections each day that work is performed on the location. Pay particular attention to the reserve pit to assure that there are no leaks. Retain a gate guard at the location entrance until all operations have been completed. Furnish cooling trailers during operations if weather necessitates. Supply drinking water and approved electrolytes at the trailers. Release and remove all necessary equipment at the end of the operation and clean-up the location. Verify that all production tanks are grounded, and anchors, if necessary, are in place. 48 hours is required for One Call (Louisiana 1-800-584-4274). One call must be completed by vendor prior to any type of flowback/completion operations. All incidents are to be reported to supervisor and Encana supervisor immediately. Ensure cement blocks and cages are secured on additional wells on pad.

Environmental Concerns
Use Mineral oil/Vegetable oil to flush chemical lines NOT DIESEL Ensure all equipment is set up properly and checked for leaks. Tighten any leaking equipment. Field Flowback Coordinator or flowback company is responsible for checking tank levels on all open top and frac tanks used during the flowback operations. Have the fluid removed by an approved vacuum service as needed. Use fresh water when performing pressure tests on flowback treating lines. Bleed off into the open top tanks, alleviating any water from contacting the ground. Encana has a NO FLARE policy. If flaring is REQUIRED, Completions Engineer must notify the Environmental Coordinator supporting NLA. The Environmental Coordinator will determine whether a permit is needed.

Field Flowback Coordinator or flowback company is responsible for notifying Completions Engineer if any type of wildlife is found in a reserve pit. The Completions Engineer is required to notify his/her supervisor and the NLA Environmental Coordinator. Make sure spill containment is in proper location to contain any leaks/spill. Report ALL spills, anywhere on location. Continue throughout the completions operation to check the reserve pits to verify there is a minimum of 2 ft of freeboard. Field Flowback Coordinator, or flowback company are responsible to have free water removed from pit if necessary. Verify all MSDS sheets are on location and easily accessible (i.e., company rep trailer) During any point during the flowback where gas is being vented to the atmosphere, the estimated volumes need to be captured and noted on the flowback report.

Rig Up & Test

1. MIRU crew and equipment to dress-off location. Make sure rat-hole is filled and compacted before location is dressed off and rock is laid. 2. A post frac wellbore schematic and directional survey must be provided to coil company, and consultants. Have coil company perform a torque and drag model for the CT DO. Review the torque and drag modeling to make sure no limitations have been overlooked. Also review the fatigue data of the tubing and have an understanding of the tubings history, storage maintenance, etc. Note that Encana does not allow any high fatigue points (>60%) or butt welds. Ensure that the coil supervisor and operator are checking the fatigue software periodically throughout the job. 3. Review the fatigue data and compare the plug depths to determine if any CT needs to be cut prior to RIH. 4. All equipment used on location will need to be rated to 15K psi, 375 F, 25 ppm H2S and 10% CO2 compatible. Confirm 90k yield strength coil or higher. 5. Spot and RU the following o 1.75 CT unit: Ensure that the coil is not fatigued more than 60% in any portion of the string. The tubing reel needs to be a minimum of 30 from the injector as to not exceed 5 of the fleet angle. The distance should be ~60 from the reel to the gooseneck, and the gooseneck should have a minimum 90 radius. CTU must be rigged up so the operator can visually see the gas buster and fluids returning to surface. Ensure the anchor points are ~50 apart and 18 from the wellhead. The anchor lines should cross each other. o Pump truck: 2 Pumps or Double Pump (Capable of 2.5 bpm @ 12,000 psi circulating pressure on one side of double pump) Ensure coil company and/or tool company have at least 1 inline filter in place.

Do not start in the hole unless both sides of the double pump are in good working condition so that there will always be one on backup. DO NOT RIH using both sides to make up total rate. Only one side will be used with the other for backup.

o o

Crane: 80 ton, with 110 boom length Minimum crane should be 70 ton with 100 boom length o Crane should be positioned at a 90 angle between wellhead and coil unit. 250 BBL open top tank: Tank must be spotted a minimum of 100 downwind of any ignition source, i.e. CT unit. Gas buster: Must be anchored and set high enough to view fluids returning.

6. All connections from the top of the tree to the stripper must be flanged (Figure 1). 7. Two 2 flow lines will be NU to either side of the frac stack 2-9/16 flowcross. o The primary line will connect to a hydraulic choke manifold, anchored gas buster, and then dump into the 250 bbl open top tank. o The secondary line will tie into a manual choke manifold, anchored gas buster and then dump directly into the 250 bbl open top tank.

o Note: If at any time the primary circulation line becomes plugged off due to large sand slug, be prepared to open the backup line to the manual choke manifold as needed to continue flow.
8. RU CT Quad BOP stack on top of flow cross and install flanged riser. Install injector head on riser. Ensure that there is no bending load on the riser and that the crane operator is constantly monitoring his weight so that there is sufficient tension. Enough riser joints will be necessary to house the BHA (~ 25 BHA, each lubricator joint is 8-10). o The Quad BOP includes (See Figure 1): Blind Ram Shear Ram Slip Ram Pipe Ram o There should be 2 sets of safety rams below the quad BOP and below the flow cross. These should include (See Figure 1): Blind/Shear Combies Slip/Pipe Combies o Double check the rams are the proper size for the coil prior to RU on tree o The flow coil tubing flow cross rig up should allow kill weight to be circulated down the coiled tubing/tubing annulus at any point during the job. o Each side of the flow cross is equipped with a manual and a hydraulic or pneumatic remote operated valve. (Manual on the inside closest to flow cross, hydraulic outside) o All of the BOP function should be cycled and visually observed functioning. Check for hydraulic leaks. Test and record the amount of time necessary to open and close the valves. o Check the pre-charge in the accumulators and ensure there is enough pressure and hydraulic fluid in the system to operate in a well control situation 9. RU fluid companys mixing plant (2 - 40 bbl) and associated equipment including filter pods and pumps if necessary. o Sweeps: Have double the amount of sweep fluid necessary on location. All sweeps must be pumped with a colorful dye to recognize return. 2 sweeps/plug (One when plug is tagged and one when plug sets free) 1 sweep at PBTD Sweeps can also be broken into a 5 bbl Xanthan sweep followed by a 5 bbl water wash sweep, and then the second 5 bbl Xanthan sweep. These will all be pumped back to back. Well wash sweeps work better when cleaning propants, however a 10-15 bbl heavy sweep (80-100 vis) will have better lift properties for plug parts. The sweep viscosity will have a minimum of 80 cp. If this is an issue, do not continue to mill plugs until fluids are brought back to acceptable levels. o Friction Reducer:

1.5 gal FR/10 BBL of fresh water. The CTDO will require roughly 3,000-4,000 bbls of fresh water Pipe On Pipe/Liquid Beads: P.O.P - No more than 1% treatment per 40 bbl pumped Liquid Beads - 16 lbs per 40 bbl pumped Have the fluids hand monitor and coordinate with coil operator to see how pipe conditions are behaving and treat accordingly.

10. PU 2.875 External coil connector with pump thru thread protector. Load coil with Fresh Water and pressure test the well control stack in the following order. a. Open BOPs and Riser (against closed 4-1/16 crown valve) b. Blind Ram (test from bottom through kill port) c. Pipe Ram (closed on coil tubing/test from bottom through kill port) Note: Each segment of the test should consist of: o low (must be between 200 psi and 300 psi held for 5 min stabalized) o high pressure 10,000 psi (must be held at the Maximum Anticipated Operating Pressure (MAOP) of the component for 10 min stabilized) 11. RU & PU BHA (Motor / Mill Run, Figure 4) o 2.875 External Coil Connector o 2.875 Dual flapper valves o 2.875 Haley Jars o 2.875 Hydraulic disconnect (0.9375 ball) o 2.875 DualCirculation Sub o 2.875 Vibrational Tool o 2.875 High Torque Motor o 3.75 5-Blade Reverse Clutch Mill 12. Run a ball through the hydraulic disconnect and circ sub to determine the proper ball size. o Ensure the tool company has drifted their circ sub and disconnect prior to arriving on location. These are below the dual flapper in motorhead assembly and are very difficult to drift on location and retrieve once dropped. Drift largest ball size through jars before M/U 13. Pull test coil connector to 20K lbs and pressure test connector to ensure O Ring holds. 14. Spin the motor at surface to confirm that it is working properly. Do not drill a pilot hole on location. 15. Set depth counter to 0 at bottom flange of the lubricator. Visually inspect the rotor wheel on the counter for any ware or debris. Replace if necessary (1/32 groove in wheel can cause 100 inaccuracy at depth). Reset all data acquisition systems to reflect proper depth. 16. If necessary, equalize pressure across the wellhead by pressuring up on the lubricator. Open and close crown valve. Record number of turns to fully open and close. Flowback company should operate all wellhead valves. o Encana rep must be present at wellhead during opening and closing well to ensure proper valve function. 17. All hydraulic safety systems must be in place and functional prior to the operation commencing.

RIH and begin CTDO Operation

18. Open crown valve. 19. Calculate the snubbing force and get the drag force from the coil operator. Correlate this value to the pipe light when initial snubbing operation commences. Make sure these values are similar. If not, the wt indicator and load cell may not be working properly and will need to be fixed. o CT OD^2 (in.) x 0.7854 x WHP (psig) 20. Flow will be through a single flowline at a time. In the event of a line plugging off, the secondary flow line must be opened prior to the primary flowline being closed. o Monitor dump line on sand trap and any other line not in use to ensure no leaks during job so the BPM for returns are accurate. (Secondary lines may be tied into auxiliary tanks) 21. While in the vertical section, perform the following: o Run in hole while pumping to maintain internal pressure on coiled tubing and ensure nozzles are free of blockage. Run in hole at 80-100 fpm. Slow to 30 fpm when nearing restrictions (this rate should be maintained or reduced when unsure of depth of wellbore obstructions and when approaching plugs or sand). o The circulation rate should be 0.25 0.5 bpm and the flowback rate will also be 0.25 0.5 bpm (15 30 bbl/hr). Have coil operator double check circulating rate by counting pump strokes. o Perform a pick-up or pull test on coiled tubing every 4000 ft and record weight. Correlate the drag and slack off weights with the software predictions. o Monitor circulating and wellhead pressures closely. Watch for a change in slope between the circ. and whp. This may indicate a poorly swept wellbore or other issue. o Monitor pipe fatigue. 22. If at any time an obstruction is tagged, immediately increase the circulation rate to 2.0 bpm, keeping the flowback rate the same. Treat the obstruction like a plug. Maintain 2.0 bpm while obstruction is showing resistance, otherwise keep the circulating rate at ~2.0 bpm. Do not begin short tripping for any of these sand plugs unless they are deemed necessary. 23. Re-check the fluid system, if pump pressure is higher than anticipated, have fluid operator adjust appropriate friction reducer. Calculate the annular velocity to ensure it is sufficient to lift plug cuttings and proppant. o AV, fpm = (24.5*Pump Rate, GPM) / (CT OD^2 CSG ID^2) + Trip Vel. o AVs from Cerberus modeling in typical wellbore completion are shown at 123.4 ft/min in the 5.5 inch casing section and 166.7 ft/min in the 5 inch casing section. See prejob model for more detailed information including AVs and liquid bottoms up time. 24. While entering KOP for the first time perform the following: o The circulation rate and flowback rate will be 2.0 bpm (120 bbl/hr). o When entering a well that has been producing for several weeks stop at the end of curve, pump 10 a bbl sweep and circulate 1 wellbore volume at 2.0 bpm. This will ensure a properly circulated wellbore. o Monitor circulating and wellhead pressures closely. Especially watch for a change in slope between the circ. and whp. This may indicate a poorly swept wellbore. st o At EOC, as long as no obstructions were encountered, continue to the 1 plug at a circulation rate of 2.0 bpm.

o o

Continue to TIH at max rate of 35 fpm. Monitor pipe fatigue.

25. Tag plug, pump 10 BBL sweep per design, decrease pump rate to 1 bpm and PU 3-5. Begin circulating at 2.0 bpm to wash any loose debris from plug. At this point begin flowing the well at 0.5 bpm above injection rate to increase your AV. Get a baseline pressure and wt. before tagging back on plug. o If at any time the well begins to produce excessive amts of gas, choke the well back to keep the well from flowing. 26. Set back down on plug and slack off enough weight to torque the motor, this will range from 500 to 1200 lbs weight on mill. Continue slacking off just enough weight as plug material is removed. If progress through the plug stops, then pick up 3 ft off plug and set weight back down on plug remembering to decrease pump rate to 1 bpm prior to PU.

Start out milling with the minimum amount of set-down weight as possible, this may lengthen the mill out time but will reduce the size of the plug parts and string out the cuttings being returned through the choke. Average mill time per plug should range from 15-30 min. If plugs are being milled in less than 10 minutes, consider this too fast (apart from plugs blowing up). If plugs are blowing up or mill time is less than 10 minutes, short trip after every 3rd plug. If pump pressure increases by more than 500 psi, then too much
weight is being stacked on plug and the motor will stall out. If a stall occurs, decrease pump rate to 1 bpm and pick up coil tubing to minimize pipe fatigue. The number of pickups should be limited because of the number of cycles allowed on coil. (Roughly 2030 cycles for 1.75 and 10-15 cycles for 2 coil in HP environments > 10,000psi) When milling through a solid plug with differential pressure below that is substantially greater or less than the pressure above it, circulate bottoms up to remove all debris from the wellbore prior to milling on the plug. Then proceed slowly through the top 6 - 8 in of the plug allowing the pressure to equalize. Periodically lift the BHA off the plug as progress is made through these first six inches to insure pressure venting or equalizing. This relieves the forces on the top slips and reduces the risk of sticking. These conditions could change when drilling a flow-through CBP. Stacked Plugs: If the plug is not completely milled thru, a stump may cause spinning on the following plug. Spinning will be noticed if no torque is applied to the motor, i.e., circulating pressure doesnt rise when wt is stacked out on the plug. In this case, keep circulating and flowback rates at 2.0 BPM and keep 2k-4k lbs WOB. PU every 15 min if there is no change in circulating pressure or pipe wt to change the milling pattern. Ensure pump rates are decreased to 1 bpm prior to any PU. Document the total number of stalls for the motor.

Pump Problems: As stated above, we will not RIH unless both sides of the double pump are in good working condition. There should always be one side running with the other as backup. If pump problems are encountered while working in the horizontal part of the wellbore, activate other side as needed to maintain optimum circulating rate. Once circulation is reestablished, determine if pump will be able to continue to run on one side with the other as backup. If this is not possible (one side is down until mechanic can work on it) pull back into vertical to repair pumps. DO NOT continue milling plugs if problems persist and/or there is no backup pump to go to (ie. Using both sides to maintain rate). If catastrophic pump

problems occur or pump is completely lost, be prepared to adjust backside pressure as needed to maintain optimum AVs.
27. Mill through plug. 28. Once plug sets free, perform the following: o Pump a 10 BBL sweep per design. o The circulation rate should be 2.0 bpm, and the flowback rate will be 2.0 bpm. o If at any time the well begins to produce excessive amts of gas, choke the well back to keep the well from flowing. o Monitor circulating and wellhead pressures closely. Watch for a change in slope between the circ. and whp. This may indicate a poorly swept wellbore. o Calculate the bottoms-up time and monitor the flowback tanks for the sweeps to ensure integrity. o Once the sweep has reached the distance between KOP and surface decrease the pump rate to 1.3 bpm (AV=100 fpm) or 7500 psi circulating pressure, whichever allows for higher circulating AVs. o Continue to TIH at max rate of 35 fpm. o Monitor pipe fatigue. 29. Tag and mill through the next plug using the same procedure.

30. Short trip after every 4 plugs in first half of lateral and after 3 plugs in second half. If excessive amounts of sand is seen consider option of going down 2 plugs in second half of plug network before short tripping.
o if you begin seeing set down weights while RIH and no action on motor, consider short trips more frequently and increase the number of sweeps being pumped

31. Perform the following short trip procedure once the plugs have been milled: o Pump a 20 BBL sweep per design. o Continue into the hole 3-5 fpm while the sweep is on its way, no more than 75. o Wait before the sweep reaches the surface before beginning a short trip into a safe spot in the vertical section near KOP. Each short trip depth needs to decrease 100 as to not fatigue the tubing in the same spot. o When in the lateral, the running speed should not exceed 35 fpm. Closely monitor the weight indicator to make sure we are not pulling heavy. o During short trip to vertical, maintain a pump rate of minimum 2 bpm. o If at any time the well begins to produce excessive amts of gas, choke the well back to keep the well from flowing. o After reaching KOP, circulate for 30 min at 2.0 bpm. o If fluids are being mixed properly, you should still be able to stay around 2bpm during RIH. If there is a sweep inside the coil, pressure will increase 300 - 500 psi. o Calculate the bottoms-up time and monitor the flowback tanks for the sweeps to ensure integrity. 32. Repeat steps 24-30 for the remaining plugs. 33. After the last plug sets free, push to PBTD and follow step #30 34. When TOOH, ensure the depth counter is accurate. When tools bump up, record the depth counter to determine how far off it actually is.

Appendix
Figure 1: Proper RU of Coil Tubing Well Control Stack For NLA Operations.

Figure 2: Encana Standard 5-1/8 Tree Assembly

Figure 4: Standard BHA Configuration for Motor/Mill Run.

Figure 5: Proper RU of Flowback Equipment for NLA CT High Pressure Operations (Type II).

Disclaimer: No Warranty implicit or explicit is implied by MEDCO as to the accuracy of the results. MEDCO The use of these results are subject to End User License Agreement (EULA) of the TAS software.

Well Information

Well Name: Maximum Depth: True Vertical Depth: Horizontal Distance - North: Horizontal Distance - East: Maximum Inclination: Maximum DLS:

Kalvin Douglas 15H-01 17,276 feet 12,248 feet 5,214 feet 203 feet 92.3 @ 16,294 feet 14.23 deg/100ft @ 12,255 feet

TAS version 3.69 Copyright MEDCO 2011

Weight MEDCO Results

No Lock-up detected Maximum Pull: Maximum Bottom-Hole Pull: Maximum WOB at TD: Surface Weight At Maximum WOB:

64,343 lbs at 17,238 feet 13,368 lbs 451 lbs -522 lbs

TAS version 3.69 Copyright MEDCO 2011

Tension/Compression MEDCO Results

Tri-Axial Stress Results

Pull-out stress at Max. DLS: 9,516 psi Run-in stress at Max. DLS: 14,225 psi

TAS version 3.69 Copyright MEDCO 2011

Burst/Collapse MEDCO at Surface

Burst Pressure at no-load: Collapse Pressure at no-load: Maximum Load at no-pressure: Maximum Load:

12,230 psi -11,367 psi 54,684 lbs 58,692 lbs at 4,768 psi

TAS version 3.69 Copyright MEDCO 2011