258 Colibasi Drilling Program FINAL

Table of Contents 1

WELL OBJECTIVES .......................................................................................................4 1.1

Key Performance Indicators (KPIs)

4

1.2

AFE MD vs Days and MD vs Expenditure

5

2

COMMITMENTS ..............................................................................................................7

3

CONTACT LIST ...............................................................................................................9

4

SURFACE AND TARGET LOCATIONS ........................................................................ 10 4.1

5

258 Colibasi Structural Surface locations

11

RESERVOIR AND GEOLOGICAL CONDITIONS ......................................................... 11 5.1

Correlation wells

11

5.2

Off-set Wells

12

5.3

Geological Cross Section

14

5.4

Formation Tops and Geological Description

16

5.4

Temperature Gradient

16

5.5

Pore Pressure and Fracture Gradient

16

6

PORE PRESSURE AND FRACTURE GRADIENT ........................................................ 17

7

TRAJECTORY ............................................................................................................... 18 7.1

Trajectory Description (J-Shaped)

19

8

MUD PROGRAM SUMMARY ........................................................................................ 21

9

CASING PROGRAM SUMMARY .................................................................................. 23 9.1

Casing Objectives

24

9.2

13-⅜” Casing Accessories

25

9.3

9-⅝” Casing Accessories

25

9.4

7” Casing Accessories

25

10

BIT PROGRAM ............................................................................................................. 26

11

CEMENTING PROGRAM SUMMARY ........................................................................... 27

12

11.1

13-⅜” Surface Casing

27

11.2

9-⅝” Surface Casing

27

11.3

7” Production Casing

27

LOGGING AND EVALUATION SUMMARY .................................................................. 28 12.1

Geophysical logging

28

12.2

Directional survey

28

12.3

Cement bond log

28

13

WELL HEAD.................................................................................................................. 29

14

BOP STACK .................................................................................................................. 30

15

DRILLING OPERATIONS SEQUENCE ......................................................................... 31 15.1

30” Conductor.

258 Colibasi Drilling Program Rev 3.0

31

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15.2

Conductor clean out / Pilot hole

31

15.3

13-⅜” Casing Drilling

32

15.4

12-¼” Hole and 9-⅝” Casing.

35

15.5

8-½” Hole and 7” Casing.

40

16

WELL PERFORMANCE: ............................................................................................... 45

17

OFFSET WELLS REVIEW ............................................................................................ 46

18

RISK ASSESSMENT ..................................................................................................... 49 18.1

Risks Applicable to all Sections

49

18.2

13-⅜” Casing Drilling (17-½” Hole)

50

18.3

9-⅝” Section (12-¼” Hole)

51

18.4

7” Section (8-½” Hole)

52

18.5

Wellhead, BOP and Pressure Test Program.

53

18.5.1

53

18.6

19

Barrier Policy

Management of Change

53

APPENDIX .................................................................................................................... 54 19.1

Bit Program

54

19.2

Directional Program

56

19.3

Mud Program

58

19.4

Casing Design

60

19.5

Cement Program

62

19.6

Casing Running Good Practise

64

19.7

Salt Exit Strategy

66

19.8

DWOP

68

19.9

WDP1

70

19.10 WRB1 slides and minutes

72

19.11 WRB2 slides and minutes

74

258 Colibasi Drilling Program Rev 3.0

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EXECUTIVE SUMMARY 258 Colibasi is an oil and gas production well with a predicted production of 15MT oil/d and 6970 St m3 gas/d. The well has an expected service life of 16 years and will be part of OMV Petrom Asset VI Muntenia Central. The well is planned to have a 3 casing string design and a deviated ‘J’ shaped trajectory with a planned TD at 2325m MDRT (2295mTVDRT). The well will remain vertical until a kick-off at 1400m MDRT. The trajectory then builds in 12-¼” hole at DLS= 2.0deg/30m until 15.6 deg inc is achieved. A tangent will then be held for ~700m until well TD. A constant 277 deg azimuth is planned throughout. The well will be TD’s in 8-½” hole to accommodate a 7” production casing set across the Kliwa sup II target reservoir (planned horizontal displacement at TD = 217m). Most notably this well will apply the ‘casing whilst drilling’ technique in the 13-⅜” section to mitigate the losses and associated operational inefficiencies encountered in the surface formations on offset wells. The well will be drilled on the 258 / 291 cluster location using the drilling contractor Dafora and an MR8000 rig. The well is predicted to take 33 days to drill + 5 days to complete and test.

258 Colibasi Drilling Program Rev 3.0

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1

WELL OBJECTIVES

HSSE • •

No accidents, No incidents, No harm to people. No damage to the environment.

Geological • • • •

Oil and gas producer from the Kliwa sup II Exp. rate: 15 t/day, 6,97 St m3/d gas,. Exp. service life: 16 years Exp. recoverable reserves: - 23.8t tons of oil. - 13.9 million m3 gas assoc.

Financial • •

1.1

Drill the well in or below the AFE of 33 drilling days + 5 days completion. Drill and complete the well in or below the allocated cost: € 2,933,627.

Key Performance Indicators (KPIs)

Metric

Target

Start cards / day Near miss reported / well Planned (drilling + prod casing) Planned cost (drilling) Planned cost/m Planned days/1000m drilled

35 1 33 days €2,573,427 €1107/m 11.6 days

258 Colibasi Drilling Program Rev 3.0

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1.2

AFE MD vs Days and MD vs Expenditure

AFC Time 0

500

Measured Depth

1000

1500

2000

2500 0

10

20

30

UPPER LIMIT

258 Colibasi Drilling Program Rev 3.0

40

50

60

AFE

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258 Colibasi Drilling Program Rev 3.0

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2

COMMITMENTS Activity Disposal of drilling fluid and drilling cuttings

Well site drainage, chemical storage and management

Liquid Discharges

Incident Reporting Waste Oil Management Spillage of diesel fuel or oil

Discharge of combustion products Solid waste management •Food scraps •Garbage •Litter •Scrap metal and wood etc Light Overspill Noise

Requirement • WBM coated cuttings will be conserved and dried, with recovered water flocculated and filtered for re-use and/or disposal (Eco-Med). • Solids control equipment to be optimised to ensure maximum separation of fluid from cuttings. • Record volume of drilled cuttings and fluid disposed on environmental spreadsheet. Results to be reported to the HSEQ field Manager at the end of the well. • OBM coated cuttings will be dried to less than 3% oil content by use of a vortex drying equipment at the rig site. The remaining cutting will then either be used to generate heat for cement manufacture or mixed with cattle manure as part of an environmental disposal method. • Maintain good housekeeping practices • Chemicals are to be stored in bunded areas away from open drains and chemical containers are to be intact. • Drip trays are to be used under all machinery and fuel points and valves. • In the event of a spill, all actions are to be taken to control the spill and divert area drainage to tanks, for treatment through oil-water separator. • Ensure absorbent material is on location to use in soaking up chemical or oil spills. • All spills >100 L must be reported to field office within 2 hours • Treated sewage and grey water under routine operating conditions to be discharged to a special tank. • Rig wash water to be collected from cellar and disposed correctly. • Use of the Petrom incident reporting system to report incidents within 2 hours. Ensure that a set of incident report sheets is available. • Waste oil and grease to be drummed and returned for recycling • Records of volume of waste oil taken off rig forwarded to the Environmental manager at the end of the well. • In event of a spill, take all action to control the spill. • All spills >100L must be reported to field office within 2 hours. • Report all spills