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Expertest Pty LtdWell Testing General Guidelines

WELL TESTING

GENeRAL GUIDELINES

Compiled by:

Well Test Services Supervisor

Authorised by:

General Manager

Table of Contents

1Pre-job Planning31.1Permits to Work32Rig Up32.1Equipment Spacing42.2P & ID43Gas Detecting44Safety54.1Communication54.2Hazard / Incident Reports (HIRs)54.3Driving54.4Personal Protective Equipment (PPE)65Testing Operation66Maintenance66.1Equipment checklists77Reporting7

The following guidelines are intended to provide employees with a reference for some of the common activities associated with well testing operations.

1 Pre-job Planning

Obtain the Well Test Program and determine length of test, expected gas flow rates, liquid flow rates, shut in pressures and sampling requirements. Ensure that adequate tank storage capacity is available. Raise any concerns with program and expected flows. Organise necessary sampling equipment.

Obtain lease drawings if available from Expertest Supervisor / Client

Ensure that all equipment required is checked and ready for travel.

Factor in travel time to the location and prepare journey management plan if required.

Organise equipment transport trucks through Expertest Supervisor.

Plan provisions of food, water (van, heater, drinking) and fuel for length of test.

Inspect lease where possible and observe general access and condition, flare pit status (ie. fenced, adequate size), status of flare line, x-overs required on flare line and well head, choke and test flanges etc

Plan out equipment spacing and report any concerns, hazards or potential operational problems. Report any rubbish or environmental concerns on lease. See Expertest Pipe and Spacing Guidelines.

Advise Expertest Supervisor of permit requirements. where applicable

1.1 Permits to Work (where applicable)

No work is to be carried out on a lease unless a valid work permit has been issued, including vehicle entry to a lease (must have a gas detector with you at all times). The correct procedure is to advise the Expertest Supervisor 24 hours in advance when you plan to arrive at a lease and a Client field operator will be organised to meet you on location. On occasions, personnel may be required to organise Client permits independently. For the purpose of a production test, you will be required to obtain either a Hot Work Permit or a Well Handover depending on the test. Make sure that you read and understand all of the conditions of the permit, and sign it before commencing any work. Keep the Expertest Field Supervisor informed of type of permit received and expiry date and time. Fax a copy of permit to Expertest Supervisor if possible.

2 Rig Up

Upstream of separator inlet should be rigged in with sch 160 pipe only. This pipework should be colour coded with a black band.

Observe pipe and elbows being monitored for erosion. If possible, place into its assigned position.

Secure pipe work with tie down cables and use cement blocks where available.

Ensure that all test equipment is earthed to the wellhead.

Erect safety flagging and lease entry signs to block off dangerous areas.

Observe production line pressure and PSV settings on Client production equipment.

Chiksan swivel pipework may only be used for low pressure tank lines. Use elbows Upstream of the separator and on flare lines.

Gas from the well or production line is normally used to pressure test the equipment and flowlines. 10% safety margin, below PSV settings is maximum pressure to be used for pressure test.

When rig on-site, rig pumps may be used for pressure testing.

2.1 Equipment Spacing

The following equipment spacings are derived from the D.M.E - WA, and are to be strictly adhered to when spotting test equipment. Distances may be compromised only in the absence of adequate space on a lease and are subject to the approval of Client. See Expertest Pipe and Spacing Guidelines for more detailed information.

Separator 100 ft from well head or stock tank; 150 from any other test equipment

Heater 150 from any other test equipment

Stock Tank 150 from heater; 100 from separator or wellhead; 75 from transfer pump

Road tanker 150 from any other test equipment except 75 from transfer pump

Transfer Pump 75 from road tanker and test tank; 150 from any other test equipment

Flare Pit 150 from any test equipment

Lighting Tower 150 from any test equipment

Accommodation 150 from any test equipment and flare

Other Possible Ignition Sources 150 from any test equipment

Note: Where space is limited, road tanker and stock tank may be situated nearer together but the transfer pump must still remain 75 from each. Road tanker should be spotted where it can be removed or replaced while flowing if necessary. Do not block off access to road tanker with pipe work.

2.2 P & ID

A Process and Instrumentation Design must be completed and submitted before any test is commenced. The P & ID should show in detail all of the test equipment from the wellhead to the flare including all pipe and elbow identification numbers.

A lease layout drawing should accompany the P & ID and provide a basic schematic showing equipment positions on the lease.

Using information from the P & ID combined with the information on expected pressures and flows from the program, gas flow velocity must be calculated and faxed with the P & ID and lease layout to the Expertest Supervisor for approval from Client before flowing the well. A copy should also be faxed to the Expertest Perth office.

3 Gas Detecting

Vehicle entry to any lease requires a hot work permit and gas test prior to entry. The procedures requires you to record the results of any gas test and this should be entered into your daily sequence of events. When staying on location, it is required that a gas test be conducted before commencing work each morning and before any vehicle activity within 150 of test equipment.

It is a requirement of the permit that constant gas monitoring be undertaken in the work area while the test is in progress.

Span test Gas Detector units every Wednesday. Fax result to Expertest Supervisor and record in the logbook on location.

4 Safety

All safety meetings must be recorded and entered into the daily sequence of events. Toolbox safety meetings must be held:

Each morning on location

At arrival to any lease

Before any unusual or dangerous work is about to commence

Whenever a visitor arrives on location

A muster point must be designated on each location upon arrival.

The Emergency Management Response Plan must be updated for each location. All personnel should be familiar with it. It is typically located on the wall in the caravan office.

A copy of all of the relevant JSAs, SOPs and MSDS must be kept with the accommodation on location. All personnel should familiarise themselves with relevant procedures.

Fire extinguishers should be placed in strategic accessible positions on the lease.

Personnel leaving any base are required to carry a minimum of 10L of clean drinking water per person. Drink water frequently to avoid dehydration.

4.1 Communication

It is required that all crews call into the Expertest Supervisor at least each morning and afternoon and advise of work status.

Personnel should always carry hand held radios when out of phone or vehicle range. Radios should only be used on SWQ 15. To patch into the phone system, dial * then the number and then * again. Remember that this is an open line. To terminate the call, push the # key twice.

Test crews should be aware of directional aerials and always advise company Communications of a change of lease. The general rule of thumb is to point the aerial in the direction of the nearest communications tower.

Ensure that you know the any emergency contact numbers.

All relevant phone numbers will be located on the office wall.

4.2 Hazard / Incident Reports (HIRs)

Report all incidents and forward to the Expertest Supervisor.

Report all potential hazards. Forward to Expertest Supervisor.

4.3 Driving

Personnel must have completed the appropriate driver training and site inductions prior to driving or working in a new area.

Always drive to suit road conditions and adhere to all marked speed limits. The maximum open road speed permitted is 80 km/h.

Seat belts must be worn at all times.

Check road closures prior to departure.

Stick to main roads and engage four wheel drive on all unsealed roads.

Observe Expertest driving policy at all times.

Contact Expertest Supervisor for approval of all travel plans. Complete journey management plan for travel exceeding two hours.

Road maps should be carried in every vehicle.

Be aware of re-fueling locations. Receipts must be kept from all fuel purchases and labelled with the date, crew and vehicle number and handed in to the Expertest Field Supervisor.

4.4 Personal Protective Equipment (PPE)

Personnel must wear the appropriate protective equipment at all times.

Safety eyewear, overalls / shirts, helmets and gloves are supplied by Expertest. Personnel are required to supply their own steel capped footwear. Sleeves must be rolled down at all times.

Specific safety equipment such as face shields or hearing protection can be found with hazardous equipment and will be signed as such and must be used accordingly.

5 Testing Operation

Regularly monitor production, intermediate and surface casings. Bleed off to zero if pressure exceeds 300 psi. Never let casing pressure exceed the flowing tubing head pressure.

Under no circumstances is formation water to be dumped without prior approval from client. Any spill of any substance covering an area greater than 1 sq. metre must be reported through the Hazard / Incident Reporting system. Clean up action will then be determined.

For in line testing, always advise the relevant Production Authority or Control Room of intent to flow, duration and type of test, and end of test.

Always check PSV settings of Client production line and test equipment prior to flowing. Utilise a safety buffer of 10% between working pressure and PSV settings as production line pressures may fluctuate without warning.

Any release of a PSV must be reported via the Hazard / Incident Reporting system.

Regularly keep Client and the Expertest Supervisor advised of test status. Always seek approval prior to commencing, shutting in or sampling. Forward test results to Client and Expertest Supervisor for approval.

Before any changes may be implemented to a testing or wireline program, written confirmation of a Program Change Control (PCC) must be received, signed by Client representative.

6 Maintenance

Monitor fuel and water consumption and re-order at least 3 days in advance through the Expertest Supervisor.

Re-order food at least 48 hours in advance through the Expertest Supervisor.

Check generator oil level, pre-cleaner air filter and battery level every 2 days.

Monitor consumables from van stationary and test package and re-order as required. Allow 1 2 months for specialised parts.

6.1 Equipment checklists

Vehicle checklists should be completed daily unless the vehicle remains stationary.

Generator checklists should be completed weekly

Test package checklist should be completed once per hitch.

Equipment fault reports should be submitted when equipment is found to be faulty.

Ensure that equipment log books and diaries are completed daily.

Remember to isolate battery on trucks and generator when not in use.

7 Reporting

A sequence of events, test results and a action plan for the following day must be faxed to the Expertest Supervisor by 0600 each morning. Preferably, send through at the end of the current day to allow the supervisor time to rectify any mistakes.

Include daily fuel and water levels on action plan fax.

Minimum reporting requirements are outlined on the corresponding file, on all of the Expertest computers.

P & ID schematics, lease layout templates and the velocity calculation program may also be found on the Expertest computers. See notes above under P & ID. All schematics, calculations, and field worksheets must be submitted with the final well report.

Ensure that different zones and strings are clearly identified on reports. Each zone tested has its own test report.

Ensure that all disks are clearly labelled with Operator, Job Control Number, Test Dates, File Name, Well Name and Test Type.

An operators handover form should be prepared prior to change out of operators. This should include equipment location, performance, jobs completed and upcoming jobs. A copy should be faxed to the Expertest Supervisor. An electronic form should be on the computer, file name is Test Crew Handover Notes.

Note: Further information on any of the above topics may be obtained from reading the corresponding Job Safety Analysis and Standard Operating Procedures and Expertest Guidelines for the same. This information is readily available from the files in each accommodation van.

Well Testing General Guidelinespage 2 of 7