Kendra Decker

From: Steve Rauzi Sent: To:

Wednesday, December 16, 2015 7:27 PM Todd Clement

Cc: Kendra Decker; Nyal Niemuth Subject: RE: Triomphe Energy, LLC Sundry Notice 12.16.2015

Dear Mr. Clement, I reviewed your testing procedure and it looks good. Your notice and proposed work are in compliance with applicable rules and is approved. Steven L. Rauzi, Oil and Gas Administrator

From: Todd Clement [mailto:trclement@triompheenergy.com] Sent: Wednesday, December 16, 2015 6:13 PM To: Steve Rauzi <steve.rauzi@azgs.az.gov> Subject: Triomphe Energy, LLC Sundry Notice 12.16.2015

Dear Mr Rauzi,

Triomphe Energy, LLC seeks approval of the attached Sundry Notice dated 12.16.2015. It is our intent to commence work on or before January 31, 2016. Detailed procedures are included in the attached document. Your prompt review is appreciated. If you have any questions I can be reached any time by email or cell phone.

Respectfully yours,

Todd R Clement Triomphe Energy, LLC PO Box 911900 St George, UT 84791

Cell: 208-313-5908 Fax: 800-503-7981 trclement@triompheenergy.com

1

SUNDRY NOTICES AND REPORTS ON WELLS

1. Name of Operator _ _ T=ri=o=m..,pf"'h=e~E=n=e=r.,,,gy~, =L ... L~C~-------------------- - --- -

2. OILWELL 0 GASWELL IX] OTHER D (Specify) ----- --- --- --- - - ---

3. Well Name -~I~r~io~m~p~h~e~l _______ ___ ___ ___ _ _ ______ ___ ___ ___ _ Location ~ 9~. 7~m=i=le=s~n=o=rt=h~of~H=o=lb=r=o=o=k'-----'o=n=--H,,_,.._,_wy,_,,_7 __ 7,,_____ _ _ _ ___ ___ ___ ___ _____ _ Sec. _2_7_ _ ___ Twp. _ _ 2_0_N _ __ _ 21E Age.--- --- - County _ _ N_a_v_a~j~o _ _____ , Arizona

4. Federal, State, or Indian Lease Number, or lessor's name if fee lease _ F_e_e_L_e_as_ e_-_S_a_m_p._l_e _____ ___ _____ _

5. Field or Pool Name --~W~il=d=c=a~t ____ _ _ _ ___ ___ ___________________ _

6. Check Appropriate Box to Indicate Nature of Notice, Report, or Other Data

NOTICE OF INTENTION TO:

TEST WATER SHUT-OFF ~ PULL OR ALTER CASING

~ FRACTURE TREAT DIRECTIONAL DRILL SHOOT OR ACIDIZE PERFORATE CASING REPAIR WELL CHANGE PLANS

(OTHER)

SUBSEQUENT REPORT OF:

WATER SHUT--OFF § WEEKLY PROGRESS

§ FRACTURE TREATMENT REPAIRING WELL

SHOOTING OR ACIDIZING ALTER CASING

ABANDONMENT

{OTHER)

(NOTE: Report results of multiple completion on Well Completion or Recompletion Report and Log, Form 4)

1. DESCRIBE PROPOSED OR COMPLETED OPERATIONS (Clearly state all pertinent details, and give pertinent dates, Including estimated date of starting any proposed work. If well is directionally drilled, give subsurface locations and measured and true vertical depths for all markers and zones pertinent to this work.

See attached.

Permit No. _ _ _ /_{)_ q~s __ _

Title ,~tV". Date I 2 - I(, - :X, f S-

STATE OF ARIZONA OIL & GAS CONSERVATION COMMISSION

Sundry Notice and Reports On Wells

Form No. 25 File One Copy

5/96

1 TEST PROCEDURE

The following procedure assumes that:

a. the existing perforations in the well have been successfully squeeze cemented, (1960' -1970' & 2140' -2213')

b. the cement has been cleaned out of the 5-1/2" casing, c. a CBL under 500 psig surface pressure has been run to gauge the success of the squeeze

job, d. a positive scraper has been run to the top of the proposed new test interval (2187'-2194', e. and the well was swabbed down to the top of the proposed test interval and

demonstrated that no fluids are entering the wellbore.

SQUEEZE JOB

1) A block squeeze will be used. Run in the hole with open ended tubing and balance a cement plug across the perfs and attempt to push the cement out of the perfs and into the voids behind the casing. There are two sets of perfs to be squeezed, 1960' - 1970' and 2140' - 2213'. Base of the plug should be at 2250' and its top, after pulling the tubing up out of the cement, will be detennined by the volume of cement to be pumped. Based on the volumes below the cement top at the start of displacement will be at 1710'. Pull the tubing about 5 stands above the theoretical cement top.

2) The cement volumes to be pumped are as follows: Perfs = 2.7 cu ft (assumes a 1/2" dia perf 24" deep) Annulus= 21.8 cu ft (based on CBL approx. 200' of cement deficient 7-7 /8" x 5-1/2" annulus. Assumes 60% of the void can be filled. Left inside casing= 47.7 cu ft (assumes cement base is at 2250' and cement top after squeeze is at 1900' or 60' above uppermost perfs) Total amount of cement = 72.2 cu ft, with 24.5 cu ft displaced outside of the casing.

3) At the start of the displacement process there will be 540 ft of cement in the casing and 1710 ft of water, exerting a pressure of 1100 psig at the bottom of the column.

4) Let cement set under Arizona Oil & Gas Commission requirements.

5) Drill out cement. Tag CIBP with bit at 231 O' . Circulate. POOH and RIH with 5 1/2" casing scraper. POOH and prepare for retest.

1

FORMATION EV ALUTION TEST

1) MIRU surface production test equipment consisting of a two phase gas/liquid separator capable of metering gas rates from 0.10 MMscf/d to 1 MMscf/d and liquid rates from 1 to 500 bbls/d with an operating pressure of 50-100 psig. In addition, a choke manifold will be needed to throttle gas going to the pit and/or separator.

2) RIH with a 3-3/8" tubing conveyed perforating (TCP) gun, bar drop firing head, shock absorber safety joint, 5-1/2" production packer, gauge carrier, radioactive sub and 2-3/8" tubing. Figure 1 below contains a schematic of the proposed test string. Details should be worked out with service provider.

3) Rig up wireline and run a gamma ray correlation log to be sure perforating guns are on depth.

4) Set the packer and fill the tubing with 900' of water and fill the annulus back to surface.

5) Pressure test the annulus to 500 psig to ensure the packer is set.

6) Land the tubing with the tubing hanger in the tubing spool.

7) Nipple down the BOPE and install the production tree.

8) Drop the firing bar and release the perforating guns.

9) Place the well on production through a test unit and unload the fluid in the tubing. Swab

the well as needed to lift as much of the completion fluid out of the well as possible.

10) If the well does not initially flow and swabs dry, with little to no flow, perform an acid stimulation program, as outlined in the Formation Stimulation section below.

11) Initially direct produced liquids to the pit. Once gas surfaces, redirect the flow through the choke manifold and on to the test separator and begin metering the gas and liquid flow rate. Attempt to stabilize the gas production rate at an initial tubing pressure in the 500 to 800 psig range. Increase the choke size as needed to keep the production rate constant. Be sure that the tubinghead pressure gauge has been installed and is recording the flowing tubinghead pressures.

12) Continue to flow the wel1 for the time period outlined in Error! Reference source not found ..

13) Once the flow period has terminated, shut-in the well at the surface and continue to collect surface shut-in pressures for a period of time equal to the flow period.

14) Every 6 hours provide the surface pressure data to the Gustavson Associates well test engineer, so that a running pressure transient analysis can be performed. This running analysis will help decide when the buildup portion of the test can be terminated by the

presence of the derivative curve's flat, uniform slope indicating that radial flow has been reached and that reservoir characteristics can be calculated.

15) At the conclusion of the buildup p01iion of the test, release the surface test equipment, and unhook the tubinghead pressure gauge. Be sure all of its data has been saved.

16) Kill the well with brine of sufficient weight to eliminate surface pressure, and bleed off any

casing pressure.

17) Nipple down production tree and nipple up Class III, 3M BOPE and test

18) Unseat the packer and pull the test string out of the hole.

19) Recover the downhole pressure gauges and download their pressure data for transmission to Gustavson Associates test engineer.

20) Release the rig and close in the well.

Well Name: Triomphe Energy

Location: 803'FNL, 2186'FWL

W&ll 10 Number: Triomphe #1

Sec: 27 Township: ~

County: Navajo State: AZ API : 02-017-20067

Surface~ Size: 9 5/8

Wt.&Thrd: 36

Grade: H40 Set@: 600

Sxscmt

Clrc: Yes

TOC: Surf

Hole Size: 12-1/4"

Productlorr Cs<z S lze: 5-1/2"

------i Wt.&Thrd: 15.5

Grade:

Set@:

SxsCmt

Circ:

TOC:

------i J55

3950

0

No

184'

Hole S lza: 7•7/8''

2 Jts 2-3/8" Tbg

5-1/2" Pkr@ 2160'

3-3/8" TCP Gun 2187'-2194' (4 spf)

Liner csq

Slza: Wt.&Thrd:

Grade:

S et@:

Hole Size:

(3649~20')

4" UFJ

10.47

L80

4320

4-3/4''

Dropped 3-3/8" TCP G un

SURFACE

TOC-184'

600'

630-840 Squee:zed

658-868 Squee,ied

1106-38 Squeezed

Sqz holes-121 D'

Sqz holes-1720'

.__,_. ___ , Old Squeezed Perfs

TD: 43.20'

1960'-1970'

Old Squeezed Perfs 2140'-2213'

NewTest lnte rval

Liner top 3649' 4" UFJ

Casing Shoe @ 3950'

4085-4118

2 spf/106 holes

Lease Type: Wildcat

Range: 21E

Formation: Coconino

K6: 10' ------DF: GL,----s"'2'"'s"'s--

Spud Date: ___ 41_61_2_0_1_2_

Compl. Date: _____ _

Figure 1: Wellbore Diagram with Schematic of Test String Layout

2 FORMATION STIMULATION

1) Attempt to remove as much wellbore liquid as possible.

2) Rig up to pump down the tubing and inject 4000 gallons of 12/3 mud acid with clay stabilizers and iron chelating agents into the well. (Baker Hughes to design acid

composition.)

3) The volume of the 2-3/8" tubing to 2160' is 350 gallons, so after pumping 450 gallons, stop

pumping and allow the acid to spend itself for 30 minutes. The acid front should be about 3 .5' out from the well bore.

4) After 30 minutes pump an additional 800 gallons and again allow the acid to spend itself

for 30 minutes. The acid front should now be 1 0' out from the wellbore.

5) After an additional 30 minutes pump the remaining 2850 gallons of acid, displacing it with 350 gallons of 3% KCl, and then once again waiting for 30 minutes.

6) Finally, after 30 minutes pump another 2000 gallons of 3% KCl to displace the spent acid

15' away from the wellbore, and then wait an hour before beginning swabbing to recover the displacing KCI and spent acid.

7) When swabbing back the injected water and acid, periodicaUy check the pH of the fluid to

determine when spent acid has entered the well in order to determine how much additional

acid needs to be swabbed.

APPLICATION FOR PERMIT TO DRILL OR RE-ENTER APPLICATION TO DRILL tli.: RE-ENTER OLD WELL D

NAME OF COMPANY OR OPERATOR

Triomphe Energy, LLC Address City Stile Phone Number

PO Box 911900 St. Geor11e llt9h 800-337-0027 Drilling Colllractor ' -

Aztec Drilling Address

POBoxl00 Aztec,NM 87410 DESCRIPTION OF WELL AND LEAS{,

Federal, state or Indian Lease Number, or if ree lease, name of lessor Well number TRIOMPHE #l I Eleva1lon (ground)

lcee Le0 se • Samnle 5266' Nearest distance from proposed location to property or lease llne: Distance from proposed location to nearset drllllng, completed or appllecJ-fOr

well on the same lease:

449 feet 995 feet

Number of acres In lease Number or wells on lease, including !his well, completed in or dnlling to this reservoir:

640 acres None If lease pun:::hased with one or more wells Name

. Address

driUed, from whom purchased.

Well location (give footage from section lines) lt6°2?0WTii1oNR1iE~100GisRM·y I Dedication perA.A.C. R12-7-104(AX3) 449 FNL & 1221 FEL "'' Nl?/d '80 ac. i

Field and reservoir [If wildcat, so state) County

Wildcat NAVATO Distance In miles and direction from nearest rowo or post office

From Holbrook P. 0. N13° 28'E 14.81 miles Proposed depth: Rotary or cable tools Approximate date work wl!l start

3.000' Rotarv ... Bond status Attached Organization Report FIiing Fee of $25.00

Amourit t111 nnn On file Or attached V Allaclled X Remarks

API 4F OJ.--017- ~ 0() ~7

CERTIFICATE: I, the undersigned, under the penalty of perjury, state that I am the: Manager of the

Triompbe Energy, LLC (company), and that I am authorized by said compa:;;;,t this report; and that this

report was prepared under my sup~rvlslon and direction and that lhe facts stated therein are true, corr~ e to the best of my knowledge.

,, -=cc.- --.,,,- ;

/J,- ,f,'/

Signature ~ Man completed fomi to: . i).3 ,,, 1~ 1'> OIi and Gas Program Admlfl!Strator Arizona GBOloglcal Survey

Date ,

416 w. Coogress. #iOO Tucson, Az.85701-1315

Permit Number: /0'15' STATE OF ARIZONA

Approval Date: 5 - :2. '- - ;l..o /;{. OIL & GAS CONSERVATION COMMISSION

Approved By: <:" c... t£~? Application to Drill or Re--enter

NOTICE: Before sending in this fom, be sure lhaf you have fflven all infonnation File Two Copies

requested. Much unneoessary correspondence w I thus be avoided. Fonn No. 3

(Complete Reverse Side) 5196

f'N IIJ"/f'° 1. Operator shall outline on the plat the acreage dedicated to the well In compliance withA.A.C. R12-7-107.

2. A registered surveyor shall show on the plat the location of the well and certify this information in the space provided.

3. AI.L DISTANCES SHOWN ON THE PLAT MUST BE FROM THE OUTER BOUNDARIES OF THE SECTION.

4. Is the operator the only owner in the dedicated acreage ouUined on the plat below? YES _x_ NO __

5. If the answer to question four is no, have the interests of all owners been consolidated by communltization agreement or otherwise? YES __ NO ___ If answer is yes, give type of consolidation ________________ _

6. If the answer to question four is no, list all the owners and their respective interests below:

Owner The Cobalt Group, LLC

··. __ ,f"\

,_

/ J ,v

Land Description NEl/4 S.27, T20NR21E, G&SRM

\

1221

\ ,_ .. J

,<; .~

~-

' .

CERTIFICATION

, /

-.:.

7 Name

Poslllon

Mana er

LLC Date

3/16/2012

I hereby certify that the well location shown on the plat was Plotted from field notes of actual surveys made by me or under my supervision, and that the same Is true and correct to the best of my knowledge and belief.

Date Surveyed 15 Mar. 2012

Registered Land Surveyor

Daniel R. Muth PLS, CFS

,j,' Certificate No.Az RLS No. 31028

PROPOSED CASING PROGRAM

Size of Casing Weight Grade&Type Top Bottom Cementing Depths Sacks Cement Type .

14" 50# J55 O' 60' 0-60' 62 sks Ready Mix

9 5/8" 36# J55 O' 520' 0-520' 294 sks Class G

51/2" 15.5# J55 O' 3000' 0-3000' 475 sks Class G

I'