CANADIAN FOREST OIL LTD. Suite 600, 800 - 6th Avenue S.w. Calgary, Alberta T2P 3G3

Bus (403) 292-8000 Fax (403) 261-7665

August 8, 2003

NATIONAL ENERGY BOARD 444 - Seventh Avenue S. W. Calgary, Alberta T2P OX8 Attention:

Terry Baker Chief Conservation Officer, COGOA

M~kel'l.l'le " ..~ Land Watei' Board

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AUG 12 2003

Dear Sir: Reference:

Application to Flow Test Well and Flare Gas Cdn Forest et al Mount Coty 2K-02 Land Use Permit #: MV2003A0005 Water Licence Permit #: MV2003L1-0002 WID #: 1993

AppkatkJn #rDVSA13/\LCP AlL,."

CoPied To ~LroJurjKe:J ~

As per Section 197 of the Canada Oil & Gas Regulations, Canadian Forest Oil Ltd. (CFOL) requests approval to complete the 2K-02 well, production test the Nahanni formation and flare the produced test gas. To support our application we attached the following: (a)

Completion Program prepared by Pajak Engineering Ltd. dated August 6, 2003.

(b)

Flare Dispersion Modelling for the 2K-02 well prepared by Golder Associates Ltd., July 31, 2003.

(c)

Wellhead Diagram - Stream-Flo Drawing No. CWH-0462. All wellhead components above the 177.8mm production casing hanger will be rated for 70,000 kPa, PSL-3, Temperature Rating L.

The following eqUipment and test parameters will be used for the completion and testing.

1.

The planned flaring is required for clean up and deliverability testing of the Nahanni carbonate formation. A Four Point Modified Isochronal production test will be conducted.

2.

H2S content is expected to be ± 0.5%. CO 2 content is expected to be 10-20%. (A gas analysis from the Nahanni formation in the Chevron et al Liard M-25 and Chevron et al Liard K-29 wells supports these acid gas contents.) The gas will be sampled on location to confirm the H2S content using the Tutweiller method.

3.

If liquids are produced, they will be separated by a high stage separator and stored in a 63m 3 pressure tank which wiii be vented to a continuous pilot equipped flare stack. Liquids will be trucked to Newaita in Ft. St. John, B.C., for disposal.

4.

A conventional flare stack with continuous pilot will be used for flaring the test gas. Height required by the flare dispersion model is 12.19m. However, we plan to use a standard 18m high stack (60') with 254mm (10") !D. This will bring the stack well above the trees on the edge of the location.

- 2 5.

The estimated maximum gas volume to be flared is 3466 103m3 . (Refer to Table 1.)

6.

Tandem electronic downhole recorders will be run for both flow and build up periods. Gas volumes will be measured using appropriately sized orifice metres and liquid volumes will be measured using PD metres. Duplicate gas and liquid samples will be collected for analysis.

7.

The expected H25 destruction efficiency is 98%. concentration of 50 2 and H25 will be released.

Because of the low H2S content, very low

If you have any questions, please contact the undersigned at 403-292-8093 or Mr. Larry Thorhaug at Pajak Engineering Ltd. at 403-264-1197.

Yours truly, CANADIAN FOREST OIL LTD.

/lJ rd- ()

J~ Senior Drilling Engineer

JS:aj cc:

Wellfile

cc:

Latisha Heilman Mackenzie Valley Land and Water Board

COMPLETION PROGRAM CON FOREST ET AL MOUNT COTY 2K-02

PERTINENT DATA:

Drilling Authority:

EL381

Elevations:

Grd: KB:

TO:

4840mMD (Est.)

BHT:

1800 C (Est.)

BHP:

50 MPa (Est.)

Conductor Casing:

26 joints of 508.0mm, 158.47 kg/m and 139.87 kg/m, K-55, BT&C. Landed at 351.88m

Surface Casing:

105 joints of 339.7mm, 107.24 kg/m and 101.18 kg/m, P-110. 3 Landed at 1350m. Casing cemented with 195 tonnes (148.2m ) 0:1:0 Class "G" + 0.5% CFR + 0.4% LTP. Good cement returns.

Production Casing:

177.8mm (4700m Est.) 47.62 kg/m, TN-95-HC, BT&C

Linei:

114mm (if required).

373.04m 383.20m

KB-Grd: KB-CBF:

10.16m 9.01m

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COMPLETION PROGRAM CON FOREST ET AL MOUNT COTV 2K-02

Complete, stimulate if required and test well in the Nahanni Carbonate formation to determine deliverability and reserves.

Objective:

Production: BHP:

50 MPa (Est.)

BHT:

180°C (Est.),

Recommended Program:

1.

Notify NEB, National Energy Board, Calgary, 403-292-4800 and OlAND, Department of Indian Affairs & Northern Development, Ft. Simpson, 867-695-2627, prior to commencing completion operations.

')

Equipment requirements for drilling rig completion:

&...

(a) (b) (c) (d) (e) (f) (g)

3.

154.7mm (6") bit and 177.8mm casing scraper dressed for 47.62 kg 1m casing. 4700m of 114.3mm, 18.75 kg/m, TN80SS NEW NK3SB tubing complete with one full set of pups Integral power tong with hydraulic backup and wrap around dies for 114.3mm premium tubing Torque monitoring computer complete with electronic dump valve Power thread washer, stabbing guide and sub zero thread compound Handling equipment for 114.3mm premium tubing (elevators, slips, backup tongs, etc.) 2 - 114.3mm sour service stabbing valves complete with NK358 crossovers and crossovers to 88.9mm IF drill pipe

BOP requirements: (a) (b) (c)

179.4mm, 70,000 kPa Class III sour service BOP stack complete with 114mm pipe rams 179.4mm, 70,000 kPa working spool with flange outlets complete with 52.4mm check valve and gate valve on primary side and two gate valves on secondary side BX156 ring gaskets.

4.

Make up a 152.4mm (6) bit and 177.8mm casing scraper on 88.9mm x 3 1/2" IF drill pipe and run in hole to within approximately 5-10m from 177.8mm casing landing depth. Work scraper across packer setting depth several times. Circulate hole clean with fresh water.

5.

Assuming an open hole completion, make up on 88.9mm drill pipe the following tail pipe, seal bore extension and permanent packer and run in hole as follows: (a) (b) (c)

88.9mm NEirV NK3SB Halliburton Wireline Re-Entry guide complete with pump out plug in place, Incoloy 920 88.9mm x 3m L-80 NEW NK3SB pup joint Hastelloy G-3 pup joint 88.9mm NEW NK3SB Otis "XN" No-go landing nipple complete with 69.85mm bore and 66.93mm No-go 10, Incoloy 925.

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COMPLETION PROGRAM - Cont'd CON FOREST ET AL MOUNT COTV 2K-02

(d) (e) (f) (g) (h)

88.9mm NEW NK3SB x 3.0m Hastelloy G-3 pup joint 88.9mm NEW NK3SB Otis "X" nipple complete with 69.85mm bore, Incoloy 925 88.9mm NEW NK3SB Hastelloy G-3 pup joint 120.65mm 8rd x 88.9mm ~JE\lV ~JK3SB seal bore extension to tubing adapter Incoloy 925 120.65mm x 5.2m 8rd pin by pin Halliburton seal bore extension Incoloy 925

Note:The above assembly to be made up in shop and pressure tested to 35 MPa. Run in hole with above assembly on drill pipe and hydraulically set permanent packer in 177.8mm corrosion resistant casing pup joint (+ 9m long) and land at mKB. Base of tailpipe at mKB. Pressure test packer down annulus to 34,500 kPa 6.

Pull up with setting tool. Circulate hole clean with fresh water. Pull out of hole, laying down drill pipe.

7.

Make up a 177.8mm retrievable bridge plug. Run in hole and set at approximately 100150m. Pressure test to 7000 kPa to ensure it is set.

8.

Tear out drilling rig BOPs.

9.

Unbutton 13 5/8" 5000 psi x 13 5/8" 5000 psi spool

10.

Install 13 5/8" 5000 psi x 7 1/16 10000 psi PSL-3 tubing spool complete with two 2 1/16" 10000 flanged valves with T-3 7X trim and temperature L rating. Energize seals. Note:AII wellhead components including tubing head, tubing bonnet and lower master valve are to be PSL-3 and temperature L rating. All outlets must have VP plug preparation.

11.

Install rental 179.4mm 70000 kPa Class III sour service BOP stack complete with 114mm rams. Pipe fit all control lines to drilling rig accumulator. Pressure test BOPs using test plug to i.5 MPa and 45 iviPa for '10 minutes. Pressure test hydril to 1.5 iviPa and 20 iviPa for 10 minutes. Note: Regulations state BOPs must be pressure tested to 90% of bottom hole pressure.

12.

Make up retrieving tool for bridge plug on 88.9mm drill pipe and run in hole and retrieve.

13.

Make up the following production string and seal assembly and run in hole as follows: (a) (b) (c) (d) (e) (f) (g)

(h)

1.--

Halliburton size 101.6mm locater seal assembly complete with 5 RTR seal units, spacer tube, muleshoe, blank box for 114.3mm tubing, !ncoloy 925 material 114.3mm NEW NK3SB x 3.0m impreglon coated pup joint (box by pin) 114.3mm x 96.85 (3.81") bore INC925 H2S Otis "X" nipple 114.3mm x 1.2m NEW NK3SB pup String of 114.3mm, 18.75 kg/m, TN80SS, NEW NK3SB tubing up to .:!: 100m from surface 114.3mm x 1.2m NEW NK3SB pup joint 114.3mm x 1.2m NEW NK3SB x 0.92m Halliburton flow coupling, box by box H2S service 114.3mm safety valve landing nipple complete with 96.85mm RRQ profile Incoloy 925

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COMPLETION PROGRAM - Cont'd CON FOREST ET AL MOUNT COTY 2K-02

(i) U)

114.3mm x 1.2m NEW NK3SB pup joint 114.3mm tubing to surface complete with 6.35mm Incoloy control line from safety valve landing nipple to surface.

Note: (a) Allincoloy flow nipples are to be made up in the shop with a pup on each end. (b) Externally pressure test tubing to 50 MPa using Gatorhawk or internally using Tubetest. (c) All pups and tubing joints above the safety valve landing nipple must be special drifted to 99.06mm and marked. 14.

Run in hole and tag packer. Enter packer and seal bore extension with seal assembly. If unable to enter packer, rotate pipe slowly until seal assembly drops into packer. Run seal assembly all the way in. Pull up approximately 1 metre. Pressure test down casing to 28 MPa to confirm seals are holding. Pull out of seals and space out. Install 1/4" SS control line to SSSV. Lower seals within 0.5m of packer. Change hole over to inhibited mineral oil. Re-enter seal bore and land seals and extended neck tUbing hanger with seals 1 metre up from bottom of seal assembly. Re-pressure annulus to 45 MPa to confirm seals are holding. When running safety valve and control line, maintain 2 MPa pressure inside 1/4" control line while landing seals and tubing hanger. Maintain 35 MPa pressure on control line when pressure testing annulus to avoid collapsing control line while pressure testing. Note:Also bury all pups 1 joint below surface.

15.

Rig out BOPs and install tubing bonnet and rental wellhead. Energize seals in tubing hanger. Install two way back pressure valve in tubing hanger and pressure test wellhead connection to 50 MPa. Retrieve back pressure valve.

16.

Rig in the following test equipment: (a) (b)

f,..'

1440 psi 3 phase Horizontal Test separator 100 bbl - 250 psi low stage separator

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l:;"1111 nci v V'I••"""\,,I t"iUl A

(d) (e) (f)

3" 5000 psi flange flowline 60' x 12" flare stack ESO valves

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QTI""I lino ho"tor IIII~ 1n.... LoI\.~1

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17.

Pressure test flowline and line heater to 5000 psi. Pressure test with water first then with N2.

Pressure test separator to 1400 psi.

18.

Rig in pump and pressure up on tubing to:!:: 21 MPa to pump out plug.

19.

Monitor response at surface. If well will not flow, rig in coil tubing unit and N2 pumper. Run in with coil to approximately 1OOOm. Start circulating N2 and continue in with coil until well starts flowing. Pull out of hole with coil tubing circulating N2.

20.

Flow well to test equiprnent and determine inflow.

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COMPLETION PROGRAM - Cont'd CDN FOREST ET AL MOUNT COTY 2K-02

21.

If well requires stimulation, run in hole with coil to base of open hole interval. Acid wash perforations using 15 or 28% HCL. Displace acid using N2. Strength and volume of acid required will be based on initial flow rate.

22.

Flow well on clean up. Conduct on site Tutweiller to determine H2S concentration.

23.

Shut well in after clean up and run tandem electronic recorders using 70 MPa recorders and bomb wells. Land recorders using lock in wireline re-entry guide. Note: (a) Recorder batteries must be able to withstand .:t 180°C temperature. (b) Wireline safety valve must be pulled prior to running in hole with coil tubing or prior to running of recorders. After recorders have been landed, rerun safety valve.

24.

Conduct product test. Consult Calgary office regarding test design. Collect duplicate gas and liquid samples prior to shutting in.

25.

26.

After shut in period, pull safety valve, retrieve recorders and rerun safety valve. If buildup is not complete, rerun recorders.

Prepared by:

Larry Thorhaug Pajak Engineering Ltd. August 6, 2003

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