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Home My WebLink About213-091 • • Schwartz, Guy L (DOA) From: Schwartz,Guy L(DOA) Sent: Thursday,August 03,2017 1:20 PM To: Dudley Platt; Ray Schemanski 2(3-A I RE: KL1-4 Wellbore Diagram OK...guns were dropped/cut in order to access wellbore completely for an accurate fluid gradient back to surface as we discussed. Guy Schwartz Sr. Petroleum Engineer SCANNED AUG 0 8 2017 AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793- 1226)or(Guy.schwartz@alaska.gov). Original Message From: Dudley Platt[mailto:dapa@alaska.net] Sent:Thursday,August 03,2017 12:00 PM To: Ray Schemanski<rschemanski@brantaep.com> Cc:Schwartz,Guy L(DOA)<guy.schwartz@alaska.gov> Subject: Re: KL1-4 Wellbore Diagram Thanks Ray. Guy-schematic is correct.We did indeed shoot off the perf guns on 8/11/15.The guns did not drop after firing. Sent from my iPhone >On Aug 3,2017,at 11:55 AM, Ray Schemanski<rschemanski@brantaep.com>wrote: >Guy, >KL1-4 most recent Wellbore Diagram attached, per Dudley's request. >Regards, > Ray Schemanski >Production Superintendent >AIX Energy LLC >700 Marathon Rd. >Kenai,AK 99611 >(907)394-1342 Cell 1 Kenai Loo 1-4 Permit#: ADL 213-091 Loop API#: 50-133-20168-00-00 Pad 1 Prop. Des: MHT 9300082 1765' FNL, 1254' FWL KB elevation: 112' (20'AGL) AIX Energy LLC S33 T6N R11W S.M. Latitude: 60°34' 12.708" Longitude: 151° 13'27.893" Spud: 8/5/2013 — T /11/2013 LL RiqD:Rele9ased: Structural Pipe 16" N80HC 84# Top Bottom MD Surf 138' TVD Surf 138' SCSSSV set at 622' Surface Casing Chem Inj.set at 1806' 10-3/a' L-80 45.5ppf Top Bottom MD 0' 3,057' TVD 0' 3,051' DV Collar @ 4499'MD 4491'TVD Intermediate Casing(Proposed} \ 7-5/8" L-80 29.7 ppf �•� Top Bottom MD 0' 9,474' Max Inc 18.39 , 5 TVD 0' 9,277' ® i' finer 1r -v Aq p ^'v 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom ' MD 9,273' 11396' ND 9,076' 11198' Baker Flex Lok Liner Hanger j Tubing w/ZXP Pkr and PBR I - 2 7/8" L-80 6.5 ppf EUE Mod top @ 9273'MD;9076'TVD ) Top Bottom S �Lpy� MD 0' 9,714' p E• ND 0' 9,514' Expro Cut off TCP ' Perf guns 8-11-15 A., Ultra Pak packer w/sealbore extension @ 9752'MD .l 9714'MD/9514'TVD "X"profile @ 9728'MD/9527'TVD 7 3-1/8"TCP gun ass'y btm was @ 9820'MD ' (total ass'y length designed to auto drop is Perforations: 591 Total Length dropped with Expro 9792-9816'MD0. cutter on 8-11-15 was 68 Ft which inrludr 2 3/8"X 2 7/8"crossover Cmt Sqz perf _ Work History 9870 72' MD U 2-12-15 GE Oil&Gas Pulled BPV • 8-11-15 Expro Cut TCP guns off tbg tail&Ran 2.25"Cutter to 10300 ft MD 8-12-15 Expro ran Static Pressure&gradient survey,Fluid level at 9666ft MD TD PBTD 11396'MD 10998'MD 11,198'TVD 10771'TVD Well Name&Number: Kenai Loop#4 Lease: Kenai Loop County or Parish: Kenai Penisula Borough State: Alaska I Country:I USA Perforations(MD): Perf(TVD): Angle @KOP and Depth: Angle @ Perfs. KOP TVD: Date Completed: RKB: 20' Prepared By: Ray Schemanski Last Revision Date: August 12,2015 • Schwartz, Guy L (DOA) From: Stephen Hennigan <shennigan@peiinc.com> Sent: Tuesday, August 06, 2013 7:51 AM To: Schwartz, Guy L (DOA) Cc: Pete Berga Subject: Buccaneer Kenai Loop#1-4 PTD 213-091 Attachments: KL 1-4 Surface Cement Vers C .pdf Guy FYI We are going to run a single slurry on the surface hole cement job. We are targeting cement to surface. Please let me know if you have any questions. SCANWEV APR 2 1 2016Project Manager/Engineer PETROLEUM 7 ENGINEERS, INC. A hamblton Company 500 Dover Boulevard, Suite 3101 Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 i ilk a 0 r Mari BAKER HUGHES Proposal No: 1001161515C BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 46tij KENAI LOOP Field 33-6N-11W Kenai County, Alaska I'vi August 5, 2013 CP/f/r1-1-17—, Cement Proposal tij Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 Operator Name: BUCCANEER ALASKA OPERATIONS LLC F'.■ Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4"Surface HUGHES Date: August 5, 2013 Proposal No: 1001161515C JOB AT A GLANCE Depth (TVD) 3,000 ft Depth (MD) 3,003 ft Hole Size 13.5 in Casing Size/Weight 10 3/4in, 45.5 lbs/ft Pump Via Drill Pipe 5"O.D. (4.276" .I.D) 19.5 Total Mix Water Required 11,524 gals Weighted Spacer Seal Bond 24 bbls Density 8.5 ppg Cement Slurry Type I 1,306 sacks Density 13.5 ppg Yield 1.68 cf/sack J Displacement Displacement Fluid 53 bbls Page Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Operator Name: BUCCANEER ALASKA OPERATIONS LLC NMI Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4" Surface HUGHES Date: August 5, 2013 Proposal No: 1001161515C WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) I (in) MEASURED I TRUE VERTICAL 15.000 CASING I 120 I 120 13.500 HOLE I 3,003 I 3,000 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) MEASURED I TRUE VERTICAL 10.750 I 9.950 I 45.5 I 3,003 I 3,000 Float/Landing Collar set @ 2,963 ft Mud Density 8.30 ppg Est. Static Temp. 88 ° F Est. Circ. Temp. 80 ° F VOLUME CALCULATIONS 120 ft x 0.5969 cf/ft with 0% excess = 71.5 cf 2,883 ft x 0.3637 cf/ft with 100% excess = 2097.2 cf 40 ft x 0.5400 cf/ft with 0% excess = 21.6 cf(inside pipe) TOTAL SLURRY VOLUME = 2190.4 cf 390 bbls Page 2 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Operator Name: BUCCANEER ALASKA OPERATIONS LLC ��■ Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4" Surface HUGHES Date: August 5, 2013 Proposal No: 1001161515C FLUID SPECIFICATIONS Weighted Spacer 24.0 bbls Seal Bond + 5.7 lbs/bbl Barite - Sacked @ 8.5 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry 2190 / 1.68 = 1306 sacks Type I Cement+0.005 lbs/sack Static Free + 0.8% bwoc CD-32 + 0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L+ 1% bwoc Sodium Metasilicate +78.3% Fresh Water Displacement 52.6 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 13.50 Slurry Yield (cf/sack) 1.68 Amount of Mix Water (gps) 8.82 Amount of Mix Fluid (gps) 8.83 Gr4129 Page 3 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping -.l ram test Coast Area Laboratory Reps BAKER HUGHES Report#: CMT036813A Client/Well Information: Company: Buccaneer District: Kenai Depth MD: 3003 Field: Kenai Loop Job Type: Surface Depth TVD: 3000 Well: KL 1-4 Hole Size: 13.5 BHST: 88 Prepared for: Pete Berga Casing Size: 10-3/4" BHCT 80 Submitted by: Joshua Herald Cement: Type I Water: Fresh Tested b : Jamison Lot#: Date: 7/25/13 Slurry Design: Static Free 0.05 % BWOC Base___ Type I 100 % FP-6L 1 gal/100saclk Additives A-2 (SMS) 1 % BWOC CD-32 0.8 % BWOC ASA-301 0.1 % BWOC Slurr Pro•erties: Density: 13.5 ppg Yield: 1.68 ft3 sack Mix Water: 8.815 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 84 86 76 71 62 33 27 21 55 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0.4 Strength Fluid Loss: 553 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): Machine: Sponge 30 bc: 50 bc: 70 bc: 3:59 100 bc: 600 i 40000— 100- 540- 36000- 90- 480- 32000- 80-..._ F 420- 28000- 70-- "/ rrr�� 360- 1 24000 Eri 60-' v _ 300- w 20000— 5.— _ ,_ I 2407 216000-: 8 407- 180- 12000- _I 30 -.--------------- _ O - _ 120- 8000- 20 _ _ .. 60- 4000- 10 L 0:00 1:00 2:00 3:00 4:00 5:00 Time(HH:MIN) Compressi - ,..ength Data: Temp 5:10 14:51 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 88 1 F 50 psi 500 psi 236 401 751 1043 1169 400- 20- 2500 360- 18- 2250 7 - -._..._..... .e.-- 320- 16- 2000-_ ... _...... ._ .._. 280- 14- 1x1750-_. _ �T u 240- 0 127 11500 m 52 _ b - E _ r2 200- y10 7 m 12507... .. _.._ E - F- i _ F 160- I, 8- 41000- ______. _-__ _._________________ __._.__..____ .... m : Eo - 120- 6 V 750- __-____.___ _____._. ._ .. ___..L____.... 0 80- ❑ 4- 500- -_ _.-_._.__ .._.______.___._ __.._ ____... ___._._. 1 .___._ .______._l .---- 40- 2- 250-'. / 0 18 36 54 72 Time(Hi) Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. 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C o) 3 I E w a m o o 5 0. o y U U `o 0 a �O o r +N 0 +/ y o } O Q c0 ° E a v cO co h y p O to 1 .9 c 2 N @ TA p W C 0 N o E Cl) O a) I 10 ;1 C � y d 1 V/ a) 1 (A co U 0 C 0 C R p o Z - - Q W c 713 0 I Y a▪) 0 c a Q n 1 4 @ p 1 1 C 0 Z E o 2 a) T d U C E as a) Z (n as a) a) N CO LO 0 CO 1 f6 co co 'p a) p p p a) Q O O C N N o a O p p J E I p Lu o �, Q1 I-I— (00 ccoo co c(00 C > CO W ',, m co co CO CO CO u WE a 1 0 a N 1 N N N N 0 W o N a) C Q d C p S ai 1I 5 n as re 0 N Z E 1U 0 ( F o 0 0 2 C a) c M to Q o o Q o 0 ..0 C U U U U U 0 2 .� . m J .� a) .Q a) I • CU7 0 ,, a 7 o a a a) u E a E d p p p p o d I OLL o 0 aa> 0 E ao) d E E ¢ a 2 W W W J 3 I ? 0 a o 0 0 CC 0 0 410 Release of Confidential Data Coversheet Well Name: Kenai Loop 1-4 PTD: 213-091 E-Set: 23916, 23926, 26464 ✓ Physical data labeled with PTD, E-Set# Conf. entry: various ✓ Import CD data to RBDMS ✓ Confidential (incomplete) entry in Well Data List notes Omport to DigLogs via E-Set tab C,/Scan labeled data COY Apply OCR text recognition iave to Well Log Header Scans ' New"complete" entry in Well Data List notes Logged by: Meredith Guhl Fully logged: 2/8/2016 • • ai3 Oct1 KL#1-4 2" MD MEM_QUAD 305-11396 Pr, 4'6':51.17II i r 4 'A ccelV AQHi / Ta 19r1I J" KL#1 4 2"TVD MEM_QUAD 305 11396 c i'lt KL#1-4 5" MD MEM_QUAD 305-11396 p.ris, c1 1 KL#1-4 5"TVD MEM_QUAD 305-11396 \ 05 11396ty �► I J C0 eQill•2 f` Yr/kt/1--- KL#1-4 ANNUAL PRESSURE LOG -- / ' { C 6/e._ ,4 i ,GQ/ ed (26q61-1 KL#1-4 CNL-GR — /9--/itacci KL#1-4 CBL SQUEEZE 4.5" LINER fry- _ Sc O I i9&tiitlif A Iir/'- > . 2646 y KL#1-4 CBL 4.5" LINER 4')� J 4iiike/wd a(Q 46095K KL#1-4 CBL 7 5/8"CASING Oi tv � c/i d —moi* ` l-,/ 6.az • , ,,3,„aS/v2 ' et c lea- 7L (10-4 KL#1-4 LRES200 LWD G� ��11/ / / �Q _�— GU�' ' KL#1-4 FORMATION LOG pef '(06' clakk KL#1-4 LWD COMBO LOG Kt#1-4 GAS RATIO LOG KL#1-4 DRILLING DYNAMICS , RECEIVED FEB 0 i 2016 AOGCC /lre cic /A) ti , _ 'A4 fib 405 r n c�u,/,� ilk pac/age , 12a 02 / 3-09/ • AIX Energy LLC January 29, 2016 Transmittal Letter RECEIVED Ms. Meredith Guhl -'- 02 Lulu Alaska Oil and Gas Conservation Commission �� 333 W. 7th Ave, Suite 100 Anchorage, Alaska 99501 Ref: AOGCC Request- Kenai Loop #1-4 - Logs needed Dear Ms. Guhl, Per your request enclosed with are copies of the following well logs: 1. Paper copy of the KL #1-4 LRES200 Log a1 ibt- (O' 2. Paper copy of the KL #1-4 CNL log2.(o4(01-1 3. Paper copy of the KL #1-4 2" TVD MEM_QUAD log 2391 Co 4. Paper copy of the KL #1-4 5" ND MEM_QUAD log ZSI ((o 5. Paper copy of the KL #1-4 CBL Squeeze 4.5' Liner log 2(0/.1(/‘.-1 Please indicate receipt of the listed data by signing in the space provided below and returning one copy to my office at the address shown above. If you have any questions regarding this transmittal, please contact me at the address and phone numbers shown or at my e-mail address cking@brantaep.com. Sincerely, CI- to O. King ` - •man Enclosures ( 14 Received by: Date: 2441 High Timbers Drive,Suite 120 ` The Woodlands,TX 77380 Phone: 832.813.0900 Fax:832-585-0133 • I Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Wednesday,January 27, 2016 2:40 PM To: Ray Schemanski Cc: Dudley Platt; Clayton King; Randy Bates; Davies, Stephen F (DOA) Subject: RE: Kenai Loop 1-4, PTD 213-091, Digital Data Ray, Following up on the Kenai Loop 1-4 well data that still is needed. 1. Paper copy of the LRES200 Log 2. Paper copy of the CNL log 3. Paper copy of the 2"TVD MEM_QUAD log 4. Paper copy of the 5"TVD MEM_QUAD log Any data or information regarding the "Annual Pressure Log", at minimum an email stating that the records were reviewed and no log was found. Also were you able to locate fan-fold copies of the CBL5 to replace the separated logs in the AOGCC archive? Please let me know an estimated time to provide the logs listed above, so I can complete the final compliance review for this well. The extra copies of the MD logs are still available if someone from AIX would like to pick them up. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. From: Guhl, Meredith D (DOA) Sent: Monday, November 23, 2015 8:57 AM To: Ray Schemanski Cc: Dudley Platt; Clayton King; Randy Bates Subject: RE: Kenai Loop 1-4, PTD 213-091, Digital Data 1 • • Ray, Thank you for the PDFs, I've added them to the archive.They meet the digital data requirements. What is the likelihood of paper copies of the LRES200 log and the CNL log being provided, as the AOGCC does not have any paper copies at this time. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. From: Ray Schemanski [mailto:rschemanski©brantaep.com] Sent: Wednesday, November 18, 2015 5:36 PM To: Guhl, Meredith D (DOA) Cc: Dudley Platt; Clayton King; Randy Bates Subject: RE: Kenai Loop 1-4, PTD 213-091, Digital Data Meredith, I was able to locate the electronic files you requested (see attached). Please let me know if these appear to be correct or if there is anything missing. As far as duplicate hard copies of the perforated accordion style logs, I had our office assistant look through the well files to see if we have duplicates. She was not able to find any, however I will be back in the office on Friday and will verify what we have. I will give you a call first part of next week to let you know what I find. Thanks, Ray Schemanski Production Superintendent AIX Energy LLC 215 Fidalgo Ave. Ste. 100 Kenai,AK 99611 (907) 394-1342 Cell (907) 335-5038 2 • • From:Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Monday, November 09, 2015 6:14 PM To: Ray Schemanski<rschemanski@brantaep.com> Subject: Kenai Loop 1-4, PTD 213-091, Digital Data Ray, Per our telephone conversation I originally was looking for the digital data for the three CBL logs run in Kenai Loop 1-4. I've attached a scan of the headers for each log. Also, as I mentioned,the logs have been separated along the perforations and are no longer accordion style.Would it be possible to get a new print of each log for the AOGCC archive that has not been separated? In review of the well history file I also noted that although (see attached list provided by Buccaneer with the 10-407 form)digital data was received from BakerHughes,the AOGCC did not receive paper prints of the TVD 2" and 5" logs. Rather there are two copies each of the MD logs. Finally,the AOGCC has not received any digital or paper data for the following three logs: 1. Annual Pressure Log 2. CNL-GR 3. LRES200 LWD Can AIX please review the data it received and provide all missing paper and digital data by November 23, 2015? If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 3 • • Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Monday, November 23, 2015 8:57 AM To: Ray Schemanski Cc: Dudley Platt; Clayton King; Randy Bates Subject: RE: Kenai Loop 1-4, PTD 213-091, Digital Data Ray, Thank you for the PDFs, I've added them to the archive.They meet the digital data requirements. What is the likelihood of paper copies of the LRES200 log and the CNL log being provided,as the AOGCC does not have any paper copies at this time. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. From: Ray Schemanski [mailto:rschemanski@brantaep.com] Sent: Wednesday, November 18, 2015 5:36 PM To: Guhl, Meredith D (DOA) Cc: Dudley Platt; Clayton King; Randy Bates Subject: RE: Kenai Loop 1-4, PTD 213-091, Digital Data Meredith, I was able to locate the electronic files you requested (see attached). Please let me know if these appear to be correct or if there is anything missing. As far as duplicate hard copies of the perforated accordion style logs, I had our office assistant look through the well files to see if we have duplicates. She was not able to find any,'however I will be back in the office on Friday and will verify what we have. I will give you a call first part of next week to let you know what I find. Thanks, Ray Schemanski 1 Production Superintendent • AIX Energy LLC 215 Fidalgo Ave.Ste. 100 Kenai,AK 99611 (907) 394-1342 Cell (907) 335-5038 From:Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Monday, November 09, 2015 6:14 PM To: Ray Schemanski<rschemanski@brantaep.com> Subject: Kenai Loop 1-4, PTD 213-091, Digital Data Ray, Per our telephone conversation I originally was looking for the digital data for the three CBL logs run in Kenai Loop 1-4. I've attached a scan of the headers for each log. Also, as I mentioned, the logs have been separated along the perforations and are no longer accordion style.Would it be possible to get a new print of each log for the AOGCC archive that has not been separated? In review of the well history file I also noted that although (see attached list provided by Buccaneer with the 10-407 form) digital data was received from BakerHughes,the AOGCC did not receive paper prints of the ND 2" and 5" logs. Rather there are two copies each of the MD logs. Finally,the AOGCC has not received any digital or paper data for the following three logs: 1. Annual Pressure Log 2. CNL-GR 3. LRES200 LWD Can AIX please review the data it received and provide all missing paper and digital data by November 23, 2015? If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907)793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, 2 please delete it,without first saving or forwing it,and,so that the AOGCC is aware of the mistain sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 3 • • Guhl, Meredith D (DOA) From: Ray Schemanski <rschemanski@brantaep.com> Sent: Wednesday, November 18, 2015 5:36 PM To: Guhl, Meredith D (DOA) Cc: Dudley Platt; Clayton King; Randy Bates Subject: RE: Kenai Loop 1-4, PTD 213-091, Digital Data Attachments: KLU1-4 CBL 9-6-13.pdf; KL4-1SQUEEZE CBL 9-29-13.pdf; KLU 1-4 CBL 4 SIN LINER_ 9-22-13.pdf; Buccaneer_Operating_KLU_1-4_CNL.PDF; Buccaneer_KL_1_4_LRES200 _pp.pdf Meredith, I was able to locate the electronic files you requested (see attached). Please let me know if these appear to be correct or if there is anything missing. As far as duplicate hard copies of the perforated accordion style logs, I had our office assistant look through the well files to see if we have duplicates. She was not able to find any, however I will be back in the office on Friday and will verify what we have. I will give you a call first part of next week to let you know what I find. Thanks, Ray Schemanski Production Superintendent AIX Energy LLC 215 Fidalgo Ave. Ste. 100 Kenai,AK 99611 (907) 394-1342 Cell (907) 335-5038 From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Monday, November 09, 2015 6:14 PM To: Ray Schemanski<rschemanski@brantaep.com> Subject: Kenai Loop 1-4, PTD 213-091, Digital Data Ray, Per our telephone conversation I originally was looking for the digital data for the three CBL logs run in Kenai Loop 1-4. I've attached a scan of the headers for each log. Also, as I mentioned,the logs have been separated along the perforations and are no longer accordion style.Would it be possible to get a new print of each log for the AOGCC archive that has not been separated? In review of the well history file I also noted that although (see attached list provided by Buccaneer with the 10-407 form) digital data was received from BakerHughes,the AOGCC did not receive paper prints of the TVD 2" and 5" logs. Rather there are two copies each of the MD logs. • Finally,the AOGCC has not received any digital or paper data for the following three logs: 1. Annual Pressure Log 2. CNL-GR 3. LRES200 LWD Can AIX please review the data it received and provide all missing paper and digital data by November 23, 2015? If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W.7th Ave,Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907)793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 2 • ileikal Lopioq g ( 3-o91 KL#1-4 2" MD MEM_QUAD 305-11396 pr,, 4o51 }7 (' "2 Coe le-b KL#1-4 2"TVD MEM_QUAD 305-11396 aa)E`17"- KL#1-4 5" MD MEM_QUAD 305-11396 p, c4r -"°9 ce4 KL#1-4 5"ND MEM_QUAD 305-11396 CYLe - �S _�. KL#1-4 ANNUAL PRESSURE LOG f --_-_y KL#1-4 CNL-GR KL#1-4 CBL SQUEEZE 4.5" LINER ,:-.-:i ,: Z(o (OLk KL#1-4 CBL 4.5" LINER ' KL#1-4 CBL 7 5/8" CASING rrt.- ---i KL#1-4 LRES200 LWD KL#1-4 FORMATION LOG par," '+G �; -�) KL#1-4 LWD COMBO LOG I 1 KL#1-4 GAS RATIO LOG KL#1-4 DRILLING DYNAMICS J S Guhl, Meredith D (DOA) From: Decker, Paul L(DNR) Sent: Tuesday, November 03, 2015 9:32 AM To: Guhl, Meredith D (DOA) Subject: RE: Kenai Loop 1-4, PTD 213-091, Extended Confidentiality? Hi Meredith, No, DNR has received no request for extended confidentiality on the subject well. Thank you, -Paul From: Guhl, Meredith D (DOA) Sent:Tuesday, November 03, 2015 9:16 AM To: Decker, Paul L(DNR)<paul.decker@alaska.gov> Cc: Bettis, Patricia K(DOA)<patricia.bettis@alaska.gov>; Davies,Stephen F (DOA) <steve.davies@alaska.gov> Subject: Kenai Loop 1-4, PTD 213-091, Extended Confidentiality? Hello Paul, Has extended confidentiality been requested for Kenai Loop 1-4, PTD 213-091, by AIX Energy?The well is due for release after 11/9/2015. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 tiOF Ti f,��s THE STATE Alaska Oil and Gas o fLASIc:A Conservation Commission - A 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 ALAS"' Fax: 907.276.7542 www.aogcc.alaska.gov Ray Schemanski Production Superintendent AIX Energy, LLC 215 Fidalgo Ave., Suite 100 Kenai, AK 99611 Re: Kenai Loop Field, Undefined Gas Pool, Kenai Loop 1-4 Sundry Number: 315-061 Dear Mr. Schemanski: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Daniel T. Seamount, Jr. Commissioner DATED this /Z day of February, 2015 Encl. • . •• RECEIVED STATE OF ALASKA FEB 0 6 2015 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOG f, 20 AAC 25.280 1.Type of Request: Abandon❑ Plug for Redrill 0 Perforate New Pool 0 Repair Well 0 Change Approved Program 0 Suspend❑ Plug Perforations 0 Perforate 0 Pull Tubing❑ Time Extension 0 Operations Shutdown0 Re-enter Susp.Well❑ Stimulate❑ Alter Casing❑ Other: fo'f7✓' Psi ❑ 2.Operator Name: 4.Current Well Class: J,� ,el j Com' 5.Permit to Drill Number: AIX Energy LLC Exploratory El /" . Development - A8 -213.8991 'Lk'S -0'( 3.Address. Stratigraphic 0 Service ❑ 6.API Number: 215 Fidalgo Ave.Ste. 100,Kenai AK 99611 50-133-20168-00-00 7.Iferforating C)r 64-76„),,,, 6; 8.Well Name and Number: P , What Regulation or Conservation Order governs well spacing in this pool? -- : 1 ., �.,./,.,s Kenai Loop 1-4 Will planned perforations require a spacing exception? Yes 0 No ID 9.Property Designation(Lease Number): 10.Field/Pool(s): MHT 9300082 ' Kenai Loop/ -Undefined 4i ., '7---,},L...-/ i _.: .r.,/s 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): . 11398 11198 11020 10793 Casing Length Size MD TVD Burst Collapse Structural Conductor 132 Ft. 16 Inch 138 Ft 138 Ft Surface 3057 Ft 10.75 Inch 3057 Ft 3054 Ft 5710 Intermediate 9550 7.625 Inch 9550 Ft 9358 Ft 6890 4790 Production Liner 2196 Ft 4.5 Inch 11396 Ft 11198 Ft 8430 7500 Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 9792 to 9816 9592 To 9616 2 7/8" L-80 9714 Packers and SSSV Type: SCSSV: Baker 2 7/8"Select T Packers and SSSV MD(ft)and TVD(ft)'. SCSSV: 662 MD, 662 TVD Packer:Weatherford Ultra Pack Packer:9714 MD, 9514 TVD 12.Attachments: Description Summary of Proposal ID 13.Well Class after proposed work: Detailed Operations Program 0 BOP Sketch 0 Exploratory 0 Stratigraphic❑ Development 0 Service 0 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 2/12/2015 Oil 0 Gas WDSPL 0 Suspended ID 16.Verbal Approval: -� Date: i;1(1,� WINJ 0 GINJ 0 WAG 0 Abandoned 0 Commission Representative: __J j i,1 12,eci GSTOR 0 SPLUG 0 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Ray Schemanski Email rschemanski@brantaep.com Printed Name Ray Schemanski Title Production Superintendent Signature W Phone Date /' (907)394-1342 2/6/2015 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3v6- (Jt Plug Integrity 0 BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 Other: S kW.rwc ter ;r /'ts �c..2 e� 4,,) V-11- 6 ,1,-,..,o.o t.iµ.. SCC(-' lt�n'%+ "-I hl46 -C%.-e'-&�e>"--974-421444:-e- C1 �, .�/�f - L':C. �� Spacing Exception Required? Yes 0 No Subsequent Form Required: �clrt.<_. - ;Yivvit4.S ins.ic- 2 �' �5 APPROVED BY Approved by: . / COMMISSIONER THE COMMISSION Date: ' ,t4 .,2.-//-..5" oR ip � N ,�z\ikH- Submit Form and Form to-a03(Bevis 10/2012) A a othAior 12 months from the date of approval � attachments in Duplicate RBDMS- FEB 1 i 2015 .4,A1/l.� z.- 4:,-/ - • • AIX Energy LLC RECEIVED FEB 0 6 2015 February 6, 2015 AOGCC Mr. Guy Schwartz and Mr.Jim Regg Alaska Oil &Gas Conservation Commission 333West 7th Avenue, Suite 100 Anchorage,AK 99501 RE: Kenai Loop 1-4 Sundry Approval to pull Back Pressure Valve Dear Mr. Schwartz/Regg Please find attached "Application for Sundry Approval" (form 10-403)for Kenai Loop well KL1-4 to pull the Back Pressure Valve (BPV)for pressure monitoring purposes. Pertinent information attrached to this application includes the following: --- • Form 10-403 Application for Sundry Approval • Well Bore Diagram for KL1-4 • KL1-4 Pressure Monitoring Procedure If you have any questions or require additional information, please contact Ray Schemanski at (907) 394-1342. Ray Schemanski Production Superintendent AIX Energy LLC Enclosures Cc: Randy Bates, Dudley Platt • • Permit#: ADL 213-091 Kenai Loop 1-4 API#: 50-133-20168-00-00 I: 1 Ifi , I Pad 1 Prop. Des: MHT 9300082 1765' FNL 1254' FWL KB elevation: 112' (20'AGL) S33 T6N R11 W S.M. Latitude: 60°34' 12.708" III Longitude: 151° 13'27.893" — — - Spud: 8/5(2013 Ilkk TD: 9/11/2013 E Rig Released: 1m Structural Pipe 16" N8OHC 84# Top Bottom MD Surf 138' TVD Surf 138' 4 SCSSSV set at 622' Surface Casing Chem Inj.set at 1806' 10-3/4" L-80 45.5ppf Top Bottom MD 0' 3,057' (I i ! TVD 0' 3,051' DV Collar @ 4499'MD N . 4491'TVD Intermediate :: r0:: 7 75/8" ttom MD TVD 0' 9,474' Max Inc 18.39 ) \ TVD 0' 9.277' degrees �/ 14, Liner N4-1/2" L-80 12.6 ppf Hydril 563 ''4‘ Top Bottom MD 9,273' 11396' 2/23 TVD 9,076' 11198' 1 , F 1 : Baker Hex Lok Liner Hanger __-_._---- -'" rrTubing WI ZXP Pkr and PBR fff2 718" L-80 6.5 ppf EUE Mod top @ 9273'MD;9076'TVD �/ Top Bottom MD 0' 9,714' ND 0' 9,514' I I 1 I,l 11 1 1 r., Ultra Pak packer w/ 9714'MD extension @ profile @ 9728'MD/9527' TVD 3-1/8"TCP gun ass'y btm tj @ 9820'MD(total ass'y Perforations: length to be dropped is 9792-9816'MD ► 591 Cmt Sqz perfs 9870-72'MD . ,,,74:. '., ji PBTD 11396'MD 10998'MD 11,198'ND • 10771'ND Well Name&Number: Kenai Loop#4 Lease: Kenai Loop County or Parish: Kenai Penisula Borough State: Alaska I Country: USA Perforations(MD): Peri(TVD): Angle @KOP and Depth: Angle @ Perfs: KOP TVD: Date Completed: RKB: 20' Prepared By: Stephen Ward Last Revision Date: October 7,2013 • • • AIX Energy LLC Kenai Loop Well KL1-4 Pressure Monitoring Procedure Scope of Work: • Remove BPV: Utilize GE Oil &Gas to R/U lubricator and pull back pressure valve on well KL1-4 • Open SCSSV: Utilize existing well control panel to pressure up on the hydraulic control line to equalize and open the SCSSV. SCSSV control line pressure will be monitored daily by AIX Field Operator. • Monitor Pressure: Install an electronic pressure data logger(Spider gauge or equivalent)to monitor and record KL1-4 surface tubing pressure for an undetermined period of time. Purpose: • Pressure data will be utilized to evaluate reservoir pressure and reserves. • Pressure data will also be utilized to evaluate the effect of wells KL1-1 & KL1-3 on well KL1-4 static pressure. Current Well Status: • KL1-4 is currently completed in the Tyonek formation and was previously determined to be contiguous with wells KL1-1 and KL1-3. • KL1-4 well was drilled/completed and tree installed with top & bottom master valves,swab valve,and a wing valve (that is blinded). The well is not tied into production (no flow line or process equipment connected). • Regg, James B (DOA) From: Regg,James B (DOA) Sent: Wednesday, February 11, 2015 3:46 PM Net( z�lt I` To: rschemanski@brantaep.com l Subject: Kenai Loop 1-4 Sundry 315-061 Approval Kenai Loop 1-4 (PTD 2130910) / Request to Pull Backpressure Valve for Pressure Monitoring Purposes We are just waiting on signature from a Commissioner; all are out of the office this afternoon so I am granting VERBAL APPROVAL to perform the work under Sundry 315-061.There is 1 condition of approval—A summary report is required by 8-11-15. Please note that a spacing exception is required to test or produce KL1-4 (refer to CO 231 and CO 676). Jim Regg Supervisor, Inspections AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Jim Regg at 907- 793-1236 or iim.regg@alaska.gov. 1 S STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Buccaneer ) Docket Number: CO-13-08 Alaska Operations, LLC (Buccaneer) for an ) Conservation Order No. 676 exception to the spacing requirements of 20 ) AAC 25.055(a)(2) to test and produce gas well ) Kenai Loop No. 1-4 Kenai Loop No. 1-4 within 1,500 feet of a ) Exploratory Gas Well property line where the owner and landowner ) Kenai Peninsula Borough, Alaska are not the same on both sides of the line. ) September 3, 2013 APPEARING THAT: 1. By letter received June 12, 2013, Buccaneer requested the Alaska Oil and Gas Conservation Commission (AOGCC) grant an exception to the spacing requirements of 20 AAC 25.055(a)(2) to test and produce gas well Kenai Loop No. 1-4 within 1,500 feet of a property line where the owner and landowner are not the same on both sides of the line. An exception to the spacing requirements of 20 AAC 25.055(a)(4) is also needed to drill and complete Kenai Loop No. 1-4 (Kenai Loop 1-4) in the same governmental section as, and within 3,000 feet of, wells that are, or may be capable of, producing from the same pool. 2. On June 6, 2013, by certified mail, Buccaneer sent notice of the application to all owners, landowners, and operators of all properties within 3,000' of the planned Kenai Loop 1-4 well. Buccaneer provided AOGCC the notice, dates of mailing, addresses to which the notice was sent, and proof of certified mailing. 3. A public hearing was scheduled for August 13, 2013. On July 3, 2013 AOGCC published notice of that hearing on the State of Alaska's Online Public Notice website and on AOGCC's website, and electronically transmitted the notice to all persons on AOGCC's email distribution list. On July 4, 2013, the notice was published in the ANCHORAGE DAILY NEWS. On July 8, 2013, AOGCC mailed copies of the Notice of Public Hearing to all persons on AOGCC's mailing distribution list. 4. Potentially affected owners, landowners, and operators within a 3,000-foot radius of Kenai Loop 1-4 are Mental Health Trust (MHT), the State of Alaska. Department of Natural Resources (DNR) and Cook Inlet Region, Inc. (CIRI). 5. On July 30, 2013, CIRI protested Buccaneer's application and requested that the public hearing go forward as scheduled. 6. The public hearing was held on August 13, 2013, and testimony was received from Buccaneer, Cook Inlet Region, Inc. (CIRI), and the Trust Land Office—representatives for MHT. 7. CIRI's representative noted that Section 33 of T6N, RI 1W, S.M. (Section 33) is included within the Affected Area of Conservation Order No. 231. On August 16, 2013, the Trust Land Office provided written comments regarding Buccaneer's requested spacing exception and requested clarification regarding Conservation Order No. 231 as it applies to Sections 32, 33, and 34 of T6N, R11W, S.M. CIRI offered testimony that lease C- 410 Order 676 September 3,2013 Page 2 of 4 061167 was owned by Buccaneer until January 2013 when CIRI rescinded the lease. Buccaneer claimed that C-061167 remains a valid lease and that Buccaneer is contesting CIRI's rescinding of that lease. CIRI offered testimony that the Kenai Loop 1-4 well will drain lease C-061167. 8. Buccaneer presented testimony and maps concerning the geographic extent of seismic anomalies targeted by Kenai Loop 1-4. Buccaneer's interpretation of seismic evidence suggests that these anomalies are gas-bearing. Several of Buccaneer's maps indicate that these anomalies extend into leases C-061167 and ADL-391094. 9. Buccaneer offered no evidence to dispute CIRI's claim that the Kenai Loop 1-4 well will drain lease C-061167. 10. At the conclusion of the public hearing, the record was left open. AOGCC requested additional information from Buccaneer and CIRI. 11. On August 16, 2013, Buccaneer submitted additional information requested at the public hearing. 12. On August 26, 2013, DNR submitted a protest to Buccaneer's application. DNR contends the spacing exception for the Kenai Loop 1-4 well should not be granted because Buccaneer failed to submit a plan of operations in violation of DNR regulations and because the absence of pool rules jeopardizes DNR's correlative rights. 13. On August 27, 2013 CIRI submitted additional information and reiterated its objection that granting the spacing exception would violate its correlative rights. 14. On August 27, 2013 Buccaneer filed a response to DNR's August 26, 2013 protest. Buccaneer's response sets forth its disagreement with DNR's interpretation of DNR's regulations, its disagreement with DNR's unwillingness to unitize leases, and its claim that "concerns related to pooling and correlative rights are ... being addressed by Buccaneer, the Division and the Mental Health Trust." 15. On August 27, 2013 CIRI filed an additional objection to the spacing exception, reiterating its correlative rights claims.' 16. On August 27, 2013 DNR responded to Buccaneer's August 27, 2013 letter. DNR reiterated its claims that granting the spacing exception would violate DNR's correlative rights. DNR further stated Buccaneer is not in compliance with DNR regulations because it has not filed a plan of operations. FINDINGS: 1. Kenai Loop 1-4 is an onshore, deviated exploratory gas well located in the Kenai Peninsula Borough, Alaska.2 In both its August 26,2013 and its August 27,2013 letters,CIRI raises claims that Buccaneer is''illegally draining"CIRI acreage from the Kenai Loop 1-1 and 1-3 wells. Those issues were not a part of the Commission's public notice for the spacing exception and are therefore not before the Commission in this proceeding. In addition,the Commission notes CIRI has not tiled any request for relief based upon these claims. 2 Buccaneer testified at the public hearing on August 13,2013 that Kenai Loop 1-4 has been drilled to surface casing point, • . Order 676 Iv September 3,2013 Page 3 of 4 2. Kenai Loop 1-4 has a surface location 1254' from the west line and 1765' from the north line of Section 33, T6N, RI 1W, Seward Meridian (S.M.) and a planned bottom-hole location 2446' from the west line and 2445' from the north line of Section 33, T6N, R11W, S.M. 3. Kenai Loop 1-4 is located within Mental Health Trust land lease MHT 9300082. Buccaneer is the owner and operator of this lease and Kenai Loop 1-4. 4. Buccaneer selected the bottom hole location for Kenai Loop 1-4 based on interpretation of 2D and 3D seismic data and information from nearby wells. Buccaneer asserts that Kenai Loop 1-4 is necessary to complete, test, and produce natural gas from intervals that do not appear to be open to existing wells. 5. As planned, Kenai Loop 1-4 will lie within 3,000' of existing wells Kenai Loop 1-1 and Kenai Loop No. 1-3 (Kenai Loop 1-3), which are presently on regular gas production. 6. The planned bottom-hole location for Kenai Loop 1-4 lies within about 300' of the property line with State of Alaska lease ADL-391094, which is owned and operated by Buccaneer. 7. The planned bottom-hole location for Kenai Loop 1-4 lies within about 300' of acreage identified on Buccaneer's maps as lease C-061167. CIRI is the landowner of lease C- 061167. 8. Buccaneer's net pay isochore maps indicate that one of the sands targeted by Kenai Loop 1-4 extends into leases C-061167 and ADL-391094. 9. Buccaneer testified that 30' is the minimum thickness of reservoir sand that can be detected using their current 3D seismic survey. CONCLUSIONS: 1. Conservation Order No. 231 remains in effect; Section 33 and Kenai Loop 1-4 and lie with the Affected Area of that Order. However, as owner and operator of Kenai Loop 1-4, Buccaneer bears the burden of proof that this well will not impact the correlative rights of adjacent owners and landowners. 2. Buccaneer did not present convincing evidence that potentially gas-bearing reservoirs targeted by Kenai Loop 1-4 will not drain adjacent leases ADL-391094 and C-061167. 3. AOGCC has a statutory obligation to protect correlative rights. Any issues regarding whether Buccaneer is in compliance with DNR regulations should be adjudicated by DNR, not by AOGCC.NOW THEREFORE IT IS ORDERED: Buccaneer's is authorized to continue drilling the Kenai Loop 1-4 well. No testing of the Kenai Loop 1-4 is allowed without the prior written approval of the Commission after Buccaneer has provided notice to CIRI, DNR and the MHT. Any approval shall be contingent upon 0 • Order 676 September 3,2013 Page 4 of 4 Buccaneer's agreement to provide all data obtained as a result of the test to both CIRI and DNR. No production may begin from the Kenai Loop 1-4 well absent prior written approval of the Commission and the filing of a pooling agreement. DONE at Anchorage, Alaska and dated September 3, 2013. All° 1 I II, Cathy '. Foerster , .. • Jo • vigr an .... . ..,,,, Chair, Commissioner ,.......i,4,. 7,!,,,,. ,... ' ornmissioner , . .., ... REC 0 T.'.!.. .-:. -—' INI APPEAL NOTICE ON CV As provided in AS 31.05,080(a),within 20 days alter written notice of the entry of this order or decision,or such further time as the AOGCC grants for good cause shown,a person affected by it may tile with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed,then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is tiled. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration,upon denial,this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be tiled within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration. UNLESS the denial is by inaction,in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AO(ICC grants an application for reconsideration,this order or decision does not become final, Rather,the order or decision on reconsideration will be the FINAL order or decision of the AOGCC,and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails,OR 30 days if the AOGCC otherwise distributes,the order or decision on reconsideration, As provided in AS 31.05.080(b),"[t]he questions reviewed on appeal are limited to the questions presented to the AOGCC by the application for reconsideration." In computing a period of time above,the date of the event or default after which the designated period begins to run is not included in the period;the last day of the period is included,unless it falls on a v,eekend or state holiday,in which event the period runs until 5:00 p.m.on the next day that does not fall on a weekend or state holiday. • BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAILOOP Field RECEIVED 33-6N-11W Kenai County, Alaska September 23, 2013 JUN 16 2014 AOGGC Well Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Surface Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 • 0 C . .) 1 CEMENT JOB REPORT BAKER HUGHES CUSTOMER BUCCANEER ALASKA OPERA DATE 11-AUG-13 F.R.5 819510027 SERV-SUPV- JUSTIN BALDWIN LEASE&WELL NAME 'LOCATION COUNTY-PARISH-BLOCK KENAI LOOP#1-4-API 50133206180000 33-6N-11W Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG S TYPE OF JOB Kenai Glacier Surface SIZE&TYPE OF PLUGS LIST-CSG-HARDWARE MECHANICAL BARRIERS MD ND I HANGER TYPES MD TVD MATERIALS FURNISHED BY BJ LAB REPORT NO. PHYSICAL SLURRY-PROPERTIES SACKS SLURRY SLURRY WATER PUMP Bbl OF WGT YID GPS TIME Bbl MIX CEMENT i PPG FT i HR:MIN SLURRY WATER Seal Bond 8.51 T 2 +- Type I Lead CMT03SI13A 1,145 13.51 1.68 8.82 + _ 342.20 240.56 Type I Tail 200 14.8. — 1.34 6.34+ + 47.901 30.21. Displacement Fluid 52.63+ I Available Mix Water 600 Bbl. Available Dispi.Fluid 60 BM. TOTAL I 466.731 270.77 HOLE TBG-CSG-D.P. COLLAR DEPTHS SIZE . %EXCESS DEPTH ID OD WGT. , TYPE MO TVD GRADE SHOE FLOAT . STAGE__ 13.5 3003 9.95 10.75 45.5 CSG 3003 3000 LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLUID Jp..QQ -WGT TYPE JllD TWO BRAND&TYPE DEPTH TAP 8TM SIZE ,THREAD TYPE I631. 15 16 84 120 1201 2 1502 WATER BASED Ml. 9.1 DISPL.VOLUME DISPL.FLUID CAL.PSI CAL.MAX PSI OP.MAX MAX TUG PSI MAX CSG PSI MX VOLUME UOM TYPE WGT. BUMP PLUG TO REV. SQ.PSI RATED Operator RATED Operator WATER 52.6 BBLS Displacement Fluid 13300 10640 3500 2800 Rig EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: No Plug To Bump PRESSURE/RATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE ANNULUSBPM 1 PUMPED TYPE i TEST LINES 2500 PSI j.. CIRCULATING WELL • RIG X BJ 00:00 0 0` 0 0 0 8-9-13 09:45 0 0 0 0 0 Safety Meeting At Shop 11:00 0 0 0 0 0 Leave yard with bulk truck,and cement 11:45 0 0 0 0 0 On location,spot equipment __ 16:00 0 0 0 0 0Location rigged up,go back to shop _y... 00:00 0 0 0 0 0 8-10-13 05:30 0 0 0 0 0 (Yard Time 06:00 0 0 0 0 0 Crew at yard,possible 0900 call out 14:00 0 0 0 , 0 0 Call In to rig,Not ready,send crew home to be ready for job late afternoon 17:30 + 0 0 0! 0 0 Call in to rig,status update,possible 2100 call out,will call with 3 hour notice 00:00 ( 0 0 0 7 0 0 _ ,8-11-13 00:30 0 0 0!— 0 0 Call out from rig,Justin Baldwin,Gonzo,J.Cress,N.Ooostman,D. Nuegnbauer 01:30 0 0, 0 0 0 Crew at yard 01:45 1 0 0 0 0 0 Pre Trip Meeting,Leave Yard 02:05 I 0 01 0 ! 0 0 Arrive Location 02:10 I 0 0 0 !, 0 0 Talk with Comany Man Jim Brown,Go over numbers,Stand by 05:30 1 0 0 0 0 0 Rig up Rig Floor 05:30 01 0 0 i 0 0 Rig Has to re-rig for top connection _ 05:53 I 01 0 0 ! 0 0 Rig Floor Safety Meeting,Talc about job operations, Talked about who would call cement back to surface. Jim Brown,night Co.Man,said he R.,en PrhttMoet nastoo4ta Page 1 MON • Ill ( Ir'lliill CEMENT JOB REPORT BAKER -e, r PRESSURE/RATE-DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE AIMrmUS+ BPM PUMPED TYPE TEST LINES 2500 PSI i___ I j _ CIRCULATING WELL - RIG X BJ would call cement to surface,and weigh prior to shutting down mixing. Rig mud scale and sample catchers rigged up. 06:30 0 0 0 0 0 Reset 3305/Re-Initakze Monitor 06:38 0 0 0 0 0 _ I Pump 5 bbl water ahead 06:42 500 0 0 0 0 'Pressure test line,500 low .n. _.. 06:44 2500 0 0 0 0 High Pressure Test 06:47 0 0 0 0 0 Bleed off pressure,fix leak 06:50 2500 0 0 0 0 Pressure test,2500 06:55 0 0 0 0 0 bleed off 06:56 0 0 0 0 0 batch up spacer,8.5#,24 bbls 06:57 0 i 0 0 0 0 Rig shut us down,investigate burning exhaust smell,Was the exhaust from our unit blowing into rig 06:59 0 _._.__..0 0 0 Resume Batch up 07:11 0 0 5 24 SPCR pump spacer µw, r _ _ 07:18 0 00 0 0 Shutdown,24.8 bbl spacer pumped away 07:18 0 0� 0 0 0 Batch up Cement,Weigh Cement 13.5# � 07:26 0 0 0 0 0 Pump downhole 07:30 0 0 0 0 0 Sample, 13.6# 07:37 330 0 4.5 53 CMT Downhole 07:43 290 0 4 83 CMT Downhole 13.5# � �� 07:51 288 0 4 123 CMT Downhole 13.5# 07:55 224 0 41 135 CMT Downhole,13.6# 08:02 215 0 4 165 CMT Downhole,13.5# 08:07 0 00 0 CMT Took Sample,13.5# 08:14 211 CMT Gauge hole bbl mark,no cement to surface 08:26 260 CMT Spacer coming bade,rig opened to cellar 08:39 304 CMT Pump down,14.4#at tail end of slurry, Cement to surface called out by Night Co.Man Jim Brown 08:40 ,- MUD Displace t {.. s,r'c 08:42 435 0 4.9 1 6.5 MUD Displace 08:43 491 0 4.8 10 MUD Displace 08:44 0 1.5 MUD No mud supply from rig 08:47 668 0 4.1 25 MUD Mud supply corrected 08:54 0 0 0 50 MUD Shut down,Bleed off,check float,50bbl pumped per D-Tank,51.9bbI on meter _ 08:58 0 0 0 0 Float held,less than 1/4 bbl back 08:59 0 0 0 0 0 Wash out excess cement 09:10 0 0 0 0 0 Rig Down Meeting PSI TO TEST UML.CMT ( TOTAL PSI SPOT ��• 8�. '' SERVICE ' BUMPED BUMP FLOAT RETURNS/' BBL. LEFT ON TOP OUT PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT + _ Y N Y N 60 383 0 Y N /WM Prue ac Auo.11.131042011 Page 2 ..14604 • • cr, (Odd)Ausuea*xnv 7; X 0 0 e ... q 11 ; 11 ,7f111 ' '- ..... (utdq)Nem zA+1.A 0 = 0 a) 1- I I I < ,:.. al C (.0 •E es ti) g 4 ____ ......---- _— 1 la — '.... o 1 ‘ A r- _...47- I _ _ ,... 8 f EL 0 i 1 I 1 .. I a a a i i { j U t 1?. 15, 1 ti 8 t $ i g A , f \ 1 I 0 8 zr a m 1 0 i 4i g i en 0 •... re; 0 ....._ _ _ > ...., t - -1 ,i E 'OS 4.) ' S- .... 1 E * 0 CA 44.1 T' ... e m ...... i O. 1 ri.0 _ -;.- .--3--- .i 4C 4C V* -S ----- - 1H6 1 ......„- 0 -.1;k`l 4 ............ ._ eu .4t _ 2 ic, u, i t .0 g : a co .. .21:- ' _t_ _ -- s r — .8 L‘lx- a 0 t... t-.1 .0 ia. 10 40"- 0 0) C) 15 3 ) 0 .... 13) CO •••1 4 ) .= CO I a _ r . _-- I E (1) e L _ u. z E Iv i erszoZ -1c 43 to rt- . I 01 r, ,,, .....--- ____ LI i 1 I .-. 2 . _ 1 .,. 1 0 0 - 8 . . . —U- 0 0 _ -- tg2 8 i 1 § cs, 0 - 6 1 1 X sZ w)g oungstud 01011 I.amsseld it) ..le , as ; 03 • Operator Name: BUCCANEER ALASKA OPERATIONS LLC V iU Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4" Surface HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 3,000 ft Depth (MD) 3,003 ft Hole Size 13.5 in Casing Size/Weight 10 3/4 in, 45.5 lbs/ft Pump Via Drill Pipe 5"O.D. (4.276" .I.D) 19.5 Total Mix Water Required 11,524 gals Weighted Spacer Seal Bond 24 bbls Density 8.5 ppg Cement Slurry Type I 1,306 sacks q Density 13.5 ppg 3 L L 4QZ- G Yield 1.68 cf/sack Displacement Displacement Fluid 53 bbls Report Printed on September 27.2013 3'.55 PM Page 1 Have more questios? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping 11) Operator Name: BUCCANEER ALASKA OPERATIONS LLC FARM Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4" Surface HUGHES Date: September 23, 2013 Proposal No:1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 15.000 CASING I 120 120 13.500 HOLE I 3,003 I 3,000 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) MEASURED I TRUE VERTICAL 10.750 I 9.950 I 45.5 3,003 I 3,000 Float/Landing Collar set @ 2,963 ft Mud Density 8.30 ppg Est. Static Temp. 88 ° F Est. Circ. Temp. 80 ° F VOLUME CALCULATIONS 120 ft x 0.5969 cf/ft with 0% excess = 71.5 cf 2,883 ft x 0.3637 cf/ft with 100% excess = 2097.2 cf 40 ft x 0.5400 cf/ft with 0% excess = 21.6 cf(inside pipe) TOTAL SLURRY VOLUME = 2190.4 cf = 390 bbls Report Printed on September 27,2013 3:55 Pr.t Page 2 Gr4115 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • Operator Name: BUCCANEER ALASKA OPERATIONS LLC Fa.. Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4" Surface HUGHES Date: September 23, 2013 Proposal No: 1001161515E FLUID SPECIFICATIONS Weighted Spacer 24.0 bbls Seal Bond + 5.7 lbs/bbl Barite -Sacked @ 8.5 PP9 VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry 2190 / 1.68 = 1306 sacks Type I Cement+0.005 lbs/sack Static Free + 0.8% bwoc CD-32 +0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L+ 1% bwoc Sodium Metasilicate +78.3% Fresh Water Displacement 52.6 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 13.50 Slurry Yield (cf/sack) 1.68 Amount of Mix Water (gps) 8.82 Amount of Mix Fluid (gps) 8.83 Report Printed on September 27,2013 3:55 PM Page 3 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Mai Oast Coast Area Laboratory Repor, BAKER HUGHES Report#: CDB036813A Company: Buccaneer District: Kenai Depth MD: 3003 Field: Kenai Loop Job Type: Surface Depth TVD: 3000 Well: KL 1-4 Hole Size: 13.5 BHST: 88 Prepared for: Pete Berga Casing Size: 10-3/4" BHCT 80 Submitted by: Joshua Herald Cement: Type I Water: Fresh Tested b : Jamison Lot#: Date: 7/25/13 Slurr Desi•n: Static Free 0.05 % BWOC Base I Type I 1 100 1 % FP-6L 1 gal/100sack Additives A-2 (SMS) 1 % BWOC CD-32 0.8 % BWOC ASA-301 0.1 % BWOC Slurr Pro•erties: Density: 13.5 ppg Yield: I 1.68 I ft3/sack Mix Water: 8.815 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 84 86 76 71 62 33 27 21 55 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0.4 Strength Fluid Loss: 553 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrsanin): Machine: Sponge 30 bc: 50 bc: 70 bc: 3:59 100 bc: 600 40000- 100 540- 36000_ 90-- 480 480- 32000-' 80_ - 420 7' 28000 7 70_.. _ 360 1 24000- a 60- .9 300- m 20000- f 50_ 4 240- 2 16000^ 5 40 7 180 7 12000 7 30- - ii, 120- 8000- 20- 0 60_ 4000_ 10 - CI 0:00 1:00 2:00 300 4:00 5:00 Time(HH:6T Compressive Strength Data: MEW Temp 5:10 14:51 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 88 I F 50 psi 500 psi 236 401 751 1043 1169 400- 20- 1800-, 4 360- 16- 1620-• -,-- 320- 18- 14107 280- 14- 1260- ,,i240-11211080=, A 200- a 10 900- - 2-. .. -. .. FE 8 - 160- 6- 720- " f tA_ l'120- 13 6= 540=O 1 60- 47¢ 260- - f _. .. a0— P— 160— OA- - 0 6 16 24 32 40 48 56 64 72 Tone P.-6 Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage, I`1\ whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. '• • r�.0 BAKER HUGHES Proposal No: 1001161515E BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Intermediate Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 III • CEMENT JOB REPORT BAKER HUGHES CUSTOMER BUCCANEER ALASKA OPERA DATE 02-SEP-13 F.R.5 10011010467 SERV.SUPV. JOSH H PAYNE LEASE&WELL NAME LOCATION COUNTY-PARISH-BLOCK KENAI LOOP#1-4-API 50133206180000 ____ 33-6N-11W 1 Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG ITYPE OF JOB Kenai Glacier Intermediate SIZE&TYPE OF PLUGS LIST-CSG-HARDWARE MECHANICAL BARRIERS MD TVD. f HANGER TYPES MD TVD dart plug 700-LAP-PVTS Float Collar, 7-518 li DN stage tool DN tool Cement PIug,Rubber,Top 7 Float Shoe 7-5/8-8rd PHYSICAL SLURRY PROPERTIES SACKS SLURRY SLURRY WATER PUMP Bbl MATERIALS FURNISHED BY BJ LAB REPORT NO. OF ppWGFrLD OPS HR.MN RRl AIX CEMENT PPG FT SLURRY WATER Seal Bond 037013c 10.3 30! Class G Slurry 037013c 1,191 15.8 1.15 4.92 08:10 244.44 139.51 Displacement Fluid 432.34� Available Mix Water 585 BMap.AvailablMap.Fluid 385 labl. �� TOTAL 1 706.771 139.51 HOLE TBG-CSG-D.P. COLLAR DEPTHS SIZE %EXCESS j DEPTH 7 ID 00 YUGT. • TYPE MD TVD . GRADE . SHOE FLOAT- STAGE 9.875 40 9496 6.875 7.625 29.7 CSG 9496 9301 C-75 9498 9418 1 LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLIM IP,.OP WGT, TYPE. 4.JMD._T]D- MANG&TYPE DEPTH TOP .B1!( SZZE ,THREAD . TYPEWt3T. 10.10.75 46.CSG 3003 3003' 0 0 7.625'BUTT WATER BASED ML 9.6 DISPL.VOLUME DISPL.FLUID CAL.PSI CAL.MAX PSI OP.MAX MAX TBG PSI MAX CSG PSI , VOLUME UM - TYPE MT. BUMP PLUG TO REV. SO.PSI RATED Operator RATED —_.or.� WATER 432.3 BBLS Displacement Fluid 91100 0 0 0 0 6450 5160 rig EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: PRESSURFJRATE DETAIL EXPLANATION TIME ' PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN BPM PUMPED TYPE PIPE ANNULUS TEST LINES 3000 PSI _ 1 CIRCULATING WELL - RIG X _BJ Lj 06:05 0 0 0 0 0 company man called 08:30 0 0 0 0 0 yard 10:15 0 0 0 0 0 arrive on location 10:20 0 i 0 0 0 0 safety meeting 10:30 0 0 0 0 0 make sure pump is ready for the job w- . 11:00 0 01 0 0 0 talk with company man about job 12:00 0 0 0 0 0 go over job procedure with tool hand __ 15:00 0 0 0 0 0 waiting on rig 18:30 0 0 0 0 0 gas kick 22:15 0 0 0 0 0 install head 22:45 0 0 0 0 0 safety meeting 23:00 3000 0 0 5 FRESH Wi test lines 23:15 500 0 4 10 SEAL BON pump spacer 23:30 700 0 6 30 CLASS G pump 15.8 ppg slurry 23:45 730 0 6.3 120 CLASS G pump 15.8 ppg slurry 23:48 0 0 0 120 CLASS G shut down switch air compressors . 00:05 743 0 7 190 CLASS G pumping 15.8 ppg slurry 00:20 0 0 0 245 CLASS G end cement 00:25 0 0 0 5 FRESH WI kick top plug 02:00 2100 0 0 432 9.6 PPG M bump plug • i EMI CEMENT JOB REPORT BAKER HUGHES Pk SSURE/RATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 3000 PS! CIRCULATING WELL - RIG X BJ 02:45 0 0 0 0`9.6 PPG MI-drop bomp load plug to close DN tool 03:20 750 0 .5 5 FRESH W, ON tool opened at 750 psi 04:00 0 0 0 0 0 secure pump PSI TO TEST BSL.CMT TOTAL PSI SPOT SERVICE SUPERVISOR SIGNATURE: BUMPED I BUMP FLOAT RETURNS/' BBL LEFT ON TOP OUT , PLUG PLUG EQUIP. REVERSED' PUMPED CSG CEMENTft/AA_ /YN '2100 Y N 400 600 0 Y N • • (6dd) /�isuaa N N 0 O in 0 I -las .§ m o. u Ii. i 0 1 2r"-C—t. . i 11.111E rTo m .i. H a tw c1-4 1I .. ....,,,a e___.: S M - r E m IX is 1.g 1-I \f---- -----.'. 1 ,. C s L 14CDrAmet ,.1A w _ r ` 3 8 - m O z 0 m>Cl_ 1 1 t 1 l 1 I L 4 1 L 00 L Ogg a OO � 8 CO N S o� co Qs= (isd) i a inssaad Y Operator Name: BUCCANEER ALASKA OPERATIONS LLC Vi.■ Well Name: KENAI LOOP#1-4 BAKER Job Description: 7 5/8" Intermediate HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 9,301 ft Depth (MD) 9,496 ft Hole Size 9.875 in Casing Size/Weight 7 5/8in, 29.7 lbs/ft Pump Via 7 5/8"O.D. (6.875" .I.D) 29.7 Total Mix Water Required 5,860 gals Weighted Spacer Seal Bond 30 bbls Density 10.3 ppg Slurry Class G Slurry 1,191 sacks �-` �� Density 15.8 ppg ,5 ,Z '('1 Yield 1.15 cf/sack Displacement Displacement Fluid 432 bbls Report Printed on'. September 27,20133.55 PM Page 4 Gr4109 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Operator Name: BUCCANEERALASKA OPERATIONS LLC • V U Well Name: KENAI LOOP#1-4 BAKER Job Description: 7 5/8" Intermediate HUGHES Date: September 23, 2013 Proposal No:1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED TRUE VERTICAL 9.950 CASING I 3,003 I 3,000 9.875 HOLE I 9,496 I 9,301 SUSPENDED PIPES DIAMETER (in) 1 WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) I MEASURED I TRUE VERTICAL 7.625 I 6.875 I 29.7 9,496 I 9,301 Float/Landing Collar set @ 9,416 ft Mud Density 9.80 ppg Est. Static Temp. 157 ° F Est. Circ.Temp. 124 ° F VOLUME CALCULATIONS 4,496 ft x 0.2148 cf/ft with 40% excess = 1351.8 cf 80 ft x 0.2578 cf/ft with 0% excess = 20.6 cf(inside pipe) TOTAL SLURRY VOLUME = 1 245 bbls Report Printed on September27,2013 3:55 PM Page 5 Have more questions? You can find us at: http://www.bakerh ug hes.com/products-and-services/pressure-pumping • ► Operator Name: BUCCANEER ALASKA OPERATIONS LLC FAIN Well Name: KENAI LOOP#1-4 BAKER Job Description: 7 5/8" Intermediate HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS Weighted Spacer 30.0 bbls Seal Bond + 19.5 lbs/bbl Potassium Chloride+ 92.3 lbs/bbl Barite-Sacked @ 10.3 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 1372 / 1.15 = 1191 sacks Class G Cement+ 0.005 lbs/sack Static Free +0.2% bwoc R-3 + 0.6% bwoc FL-63 + 0.3% bwoc CD-32 +0.05% bwoc ASA-301 + 1 gals/100 sack FP-6L+43.7% Fresh Water Displacement 432.3 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.15 Amount of Mix Water (gps) 4.92 Amount of Mix Fluid (gps) 4.93 Report Printed on September 27,2013 3'.55 PM Page 6 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Rev. D Will Fest Coast Area Laboratory Report 5-20-13 BAKER HUGHES Re.ort#: CMT037013C Client/Well Information: Company: Buccaneer Alaska District: Kenai Depth MD: 9496 Field: Kenai Loop Job Type: Intermediate Depth TVD: 9301 Well: KL 1-4 Hole Size: 9 7/8" BHST: 157 Prepared for: _ Pete Berga Casing Size: 7 5/8" BHCT 124 Submitted by: Ken Nix Cement: Class G Water: Fresh -Tap Tested b : Yarbrou.h Lot#: Alaska Date: 8/9/13 Slurr Desi•n: R-3 0.2 _% BWOC_ ASA-301 0.05 % BWOC Base 1 Class G 1 1001 % FL-63 0.6 _%BWOC Additives CD-32 0.3 %BWOC FP-6L _ 1 aal/100sacl Static Free 0.005 lb/sack Slurr Pro•erties: Density: 15.8 ppg _ Yield: 1 1.15 ft3/sack I Mix Water: 4.927 gal/sack Rheology: 600 rpm 300 rpm _ 200 rpm 100 rpm 60 rpm 30 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 124 F 0 86 61.5 34.5 27 12.5 3.5 2 84 5 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0 Strength Fluid Loss: 44 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): Machine: Jack q0 bc: 50 bc: 70 bc: 6:10 100 bc: 28000- 7'0 1i1 ; i f 480- 1!000 17 ]O 14D- 8000- p-_. _ - 4444_._,._44_44. b 40007 0-� ... ... 0.00 1.00 200 3.00 �_ aoo 5.00 Guo 1.00 '•., 5510 'r•.st;pressive Strength Data: _, Temp 9:27 10:48 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 157 1 F 50 psi 500 psi 838 2457 3015 4007 20- 5000- 5—. 5110- +2- 4500- 5:1. .1 0m- ie- 4000— - 550- ,4- 0500 - �54.' 415 15000 _ - 5 L. - - 1 _ dooa,o s0— 1s '1507 t 2 2000- / _....... m ii l'5 4- mm- 40- 5- 500 - ! _.,...../".".."..-' O90 5A0 1800 2490 32 00 40.00 48 00 nh2.•Uq Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage,whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. • • Buccaneer Energy Well: Kenai Loop KL 1-4 CemFACTS Report Design Date: 6/18/13 Service Type: 7 5/8" Intermediate Customer Representative: Stephen Hennigan Baker Hughes Representative: Ken Nix r' u BAKER HUGHES Advancing Reservoir Performance VPI Baker Hug•CemFACTS Program Version 5.0• Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Service Information Design Date: 6/18/13 Customer: Buccaneer Energy Well: Kenai Loop KL 1-4 _ State: AK Customer Representative: Stephen Hennigan Service Type: 7 5/8" Intermediate Service District/Boat: Kenai Baker Hughes Representative: Ken Nix Well Description Well Depth: 9496 ft Shoe Depth: _ 9496 ft Landing Collar Depth: 9416 ft Cement Top: 5000 ft Previous Shoe Depth: 3000 ft Surface Temperature: 55 °F Static BHT: 157 °F Circulating BHT: 124 °F Surface Line Length: 50 ft Surface Line ID: 1.750 in Cement Excess: Increase Hole Size(s) Hole Dia. From To in ft ft 9.950 0 3000 9.875 3000 9496 Casing OD ID Weight From To in in Ibm/ft ft ft 7 5/8" 7.625 6.875 29.70 0 9496 Miscellaneous Treating Line Volume: 0 bbl Pipe Vol Above Collar: 432 bbl Pipe Vol Below Collar: 4 bbl Annulus Volume: 436 bbl Displacement Volume: 432 bbl Total Volume: 872 bbl Casing Wt(Air): 276250 lbf Casing Wt(Eff): 173411 lbf Wellbore Start End Hole Casing Casing Summary MD MD TVD ID OD ID ft ft ft in in in Cased 0 3000 2997 9.950 7.625 6.875 Open 3000 5000 4971 9.875 7.625 6.875 Open 5000 9496 9301 10.643 7.625 6.875 Baker Hughes 1 06/18/13 Baker Hug•CemFACTS Program Version 5.00 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluids ( 4 Total) Fluid 1 Type: Initial Mud Fluid Description: Drilling mud Gel Strength: 4.0 lbf/hft2 Plastic Viscosity: 9.0 cp Yield Point: 20.0 Ibf/hft2 Density: 9.80 ppg Fluid 2 Type: Preflush or Spacer Fluid Description: Seal Bond n: 0.6040 K: 0.7098 Ibf.s^n/hft2 Yield Point: 2.4 lbf/hft2 Density: 10.50 ppg Fluid Volume: 40 bbl Water: 100.0 % Water Volume: 40 bbl Net Height: 1046 ft Total Height: 1046 ft Top: 3954 ft Bottom: 5000 ft Displacement Rate: 4.00 bpm Contact Time: 10.0 min Mixing Rate: 4.00 bpm Fluid 2 Additives 0.0% 0.0 Ibm Fluid 3 Type: Cement Slurry(Slurry) Fluid Description: Cement n: 0.6799 K: 3.3300 lbf.s^n/hft2 Yield Point: 0.1 lbf/hft2 Density: 15.80 ppg Cement Yield: 1.1500 ft3/sack Total Cement: 1193 sacks Slurry Volume: 244 bbl Water: 4.91 gal/sack Water Volume: 140 bbl Excess: 40.0 % Excess: 0 ft Net Height: 4496 ft Total Height: 4496 ft Top: 5000 ft Bottom: 9496 ft Mixing Rate: 19.5 sack/min Mixing Rate: 4.00 bpm Baker Hughes 2 06/18/13 FARM Baker Hug•CemFACTS Program Version 5.0• Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid 3 Additives 0.0% 0.0 Ibm Fluid 4 Type: Displacement Fluid Description: Displacement Plastic Viscosity: 9.0 cp Yield Point: 20.0 lbf/hft2 Density: 9.80 ppg Fluid Volume: 432 bbl Water: 100.0 % Water Volume: 432 bbl Total Height: 9416 ft _ Top: Oft Bottom: 9416 ft Operating Schedule Segment Volume Rate Time Cum.Time bbl bpm min min Seal Bond 40 4.00 10.0 10.0 Cement 244 4.00 61.1 71.1 Shut-Down 0 0.00 15.0 86.1 _ Displacement 432 10.00 43.2 129.4 Flow Inner Outer Pump_ Fluid Rey. Qmin Ref. Behavior Dia Dia_ Rate Vel. No. Turb. Temp. in in bpm ft/min bpm °F Drilling mud 5.500 8.750 6.00 133.4 6031 12.17 Seal Bond 5.500 8.750 6.00 133.4 56957 0.32 Cement 5.500 8.750 6.00 133.4 4872 6.20 Displacement 5.500 8.750 6.00 133.4 353 32.86 5.500 8.750_ 6.00 133.4 129 49.37 5.500 8.750 12.00 266.7 14239 2.53 Summary Est. Max Disp. Rate: 13.00 bpm Slurries Mixing Time: 61.1 min Displacement Time: 43.2 min Net(From Cement Mixing): 119.4 min Total(From Start): 129.4 min Baker Hughes 3 06/18/13 ISMBaker Huge CemFACTS Program Version 5.• Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Density Pore Den ECD Frac Den @ 717 bbl 3000 I l ! I I /Inni 6000 co m 2 1 1 I I I I I I I-11_ I I 10 12 14 16 17 Density Baker Hughes 4 06/18/13 Baker Huge CemFACTS Program Version 5.11 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 ECD @ Critical Depths 15— 20 1 1 1 i I 1 1 15 — 15 10 - - —3000 a) C7 - a. ^- Q. - 2 C fA CO - Q- W t 10 @� V) Ce W - H Q 0 N W C W - G —2000 5 5 —1000 --------\ 0 1 1 I I h 1 I I 1 1 I 0 _ 50 100 130 Elapsed Time(min) Baker Hughes 5 06/18/13 �RimBaker Huge CemFACTS Program Version 5.0 ' Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 -0 MD=9496 ft, Volumes in bbl Design Actual Stage =1000 717 = — 717 Slurry Total 709 Return Total 4040 01. Seal Bond -2000 244 244 02. Cement 0 0 03. Shut-Down 432 432 04. Displacement -3000 =4000 -5000 -6000 =7000 -8000 =9000 Baker Hughes 6 06/18/13 FARO Baker Hug•CemFACTS Program Version 5.• Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 0 Wellbore Diagram Drilling mud(0 ft) IM Seal Bond(3954 ft) —Cement(5000 ft) 1 000 Displacement(9416 ft) 2000- 2000 3000 4000- 4000 5000 `� 1 6000- 6000 \, 7000 8000- 8000 9000 9301- 9496 0 1397 Offset, ft Baker Hughes 7 06/18/13 r�.'■ Baker Huge CemFACTS Program Version 5.• ■� Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid Displacement/Placement Standoff(%) Effectiveness (%) 0 Oft Drilling mud 0 -500 0 0 -1000 0 0 -1500 0 0 -2000 0 -2500 0 �- -3000 0 54 -3500 54 / -4000 Seal Bond 46 46 -4500 47 -5000 Cement 100 100 -5500 100 -6000 100 100 -6500 100 100 -7000 100 100 -7500 100 -8000 100 100 -8500 100 100 -9000 100 100 9496 ft 0 67 100 -180 0 180 Baker Hughes 8 06/18/13 FanBaker Huge CemFACTS Program Version 5.0 � � V��•■ Job Number: ER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Disclaimer Notice Baker Hughes personnel will use good faith at all times in interpreting information, making recommendations, (either written, or oral) as to the type or amount of products, equipment or services to be furnished, the manner of performance, or in predicting results to be obtained.The recommendation and projections given are estimates based on calculations produced by a computer model including various assumptions regarding the well, reservoir and treatment. Due to the uncertainty of variable well conditions and the necessity of relying on facts and supporting services provided by the Customer and its other contractors, Baker Hughes hereby disclaims the accuracy of any chart interpretation, research, analysis,job recommendation or other data furnished by Baker Hughes. Such data shall include the attached report, any similar information provided electronically and any data generated through real-time monitoring. NO WARRANTY IS GIVEN CONCERNING THE EFFECTIVENESS OF THE PRODUCTS OR EQUIPMENT USED, RECOMMENDATIONS GIVEN OR SERVICES RENDERED. NO WARRANTIES, EXPRESS OR IMPLIED ARE MADE AND ALL SUCH WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABLITY OR FITNESS FOR A PARTICULAR PURPOSE,ARE HEREBY EXCLUDED AND DISCLAIMED BY BAKER HUGHES. Baker Hughes 9 06/18/13 • • ru BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Liner Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision G r4105 • • IFAiir CEMENT JOB REPORT BAKER . .. , ........ _. ,... .,,. .C . . ........._.. _ .. - - :� HUGHES CUSTOMER BUCCANEER ALASKA OPERA i DATE 18-SEP-13 I F.R.5 10011014891 SERV.SUPV. CECIL J JONES LEASE&WELL NAME LOCATION COUNTY-PARISH-BLOCK KENAI LOOP 01-4-API 50133208180000 33-8N-11W Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG 8 TYPE OF JOB Kenai Uner SIZE&TYPE OF PLUGS LIST-CSG-HARDWARE MECHANICAL BARRIERS MD ND I HANGER TYPES MD TVD MATERIALS FURNISHED BY 0.I LAB REPORT NO. i PHYSICAL SLURRY PROPERTIES SACKS SLURRY SLURRY WATER PUMP Bbl OF WGT YLD GPS TIME Bbl MIX CEMENT PPG FT HR:MIN SLURRY WATER Seal Bond I 11 40 : Class G I 388 15.8 1.18 4.96 81.35 45.82 Displacement Fluid ( , 10.4 129.8 Available Mix Water 500 BbI. Available Dispi.Fluid 500 BbI. TOTAL I 251.151 45.82 HOLE TBG-CSG-D.P. COLLAR DEPTHS S1ZE I %EXCESS DEPTH 1 ID 1 OD WOT. I TYPE I MD I TVD I GRADE 1 SHOE I FLOAT i STAGE 6.75 11396 1 4.5 11.8 CSG108971 108971 L L_____ LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLUID ..JP QQ WGT TYPE MR 1YD__ ORANtl d�� maymayTOP BT _M SIZE THREAD_. TIM 1N_GT. 6.9 .625 30. 9498 _94911 0 0 2 1502 WATER BASED M14 10.4 DISPL.VOLUME DISPL.FLUID CAL.PSI CAL MAX PSI OP.MAX MAX TBG PSI MAX CSG PSI MIX VOLUME i UOM TYPE WGT. BUMP PLUG TO REV. SQ.PSI RATED I Operator RATED Operator WATER 129.8 BBLS Displacement Fluid 10.4 Rig I EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSO,ETC.PRIOR TO CEMENTING: Lost water pressure from rig's pump twice,then mud pumps only sup. d 1.5bpm rate. Pumped 30bbi and turned over displacement to rig. PRESSURE/RATE DETAIL EXPLANATION TIME _ PRESSURE-PSI ? RATE Bbl.FLUID I FLUID I SAFETY MEETING: BJ CREW U CO.REP ' I HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 3500 PSI CIRCULATING WELL - RIG X BJ X 11:00 1 I I Sept 17,2013(C.Jones,T.Mount,J.Cress,G.Gonzales) Rig up equipment. _ 17:00 { I Leave location. 11:00 ( j Sept 18,2013(C.Jones,T.Mount.J.Cress,G.Gonzales,M.Lowery, C.Zoda)Arrive location for job. 11:05 ( I Speak with DSM Lonnie Diilinger. 11:20 _�._________.____.__ �� _ J Hold rig up safety meeting with crew. 11:30 f '; I Finish final rig up and test equipments. 13:00 I I 1Standby _ 17:00 1 t ` I Hold safety meeting on rig floor With BHI/Rig crews,DSM and Tool Hand. 17:23 75 0' 3 3 1120 Break circulation to was up pit. 17:29 1813 0 0 W�_0 H2O Attempt break circulation to shaker.Found a closed valve on rig floor manifold. 17:45 301 0 3 2.5 -H2O Break circulation to shaker. 17:52 3502 0 0 0 H2O Test lines to 3500 psi. 17:59 0 0 0 0 1120 Bleed off. 18:11 0 0 i 0 0 SPR Batch up spacer to 11. 18:17 509 0 I 2.3 0 SPR Down hole with spacer. ___ 18:19 20 01 0 2.2 SPR LOST WATER SUPPLY OF WATER FROM RIG. 18:26 0 0 0 0 SPR Finish cleaning out mix system. 18:29 906 0 4.3 2.4 SPR _ Down hole with spacer. _ 18:39 118 0 1.8 40 SPR Finish Spacer and increase weight to 15.8ppg cmt. 18:40 0 0T 0 0 CMT SHUT DOWN DUE TO LOST WATER FROM RIG. Rood ntnwac sIE0.111.130t07.5e Page 1 AIM • 111 rias CEMENT JOB REPORT .. .._.__. ...._ .... ....,C .. .. BAKER PRESSURE/RATE DETAIL EXPLANATION TIMEPRESSURE-PSI RATE I BbL FLUID FLUID SAFETY MEETING: BJ CREW (X CO.REP. HR:MIN. PIPE ANNULUS 8PM PUMPED TYPE TEST LINES 3500 PSI CIRCULATING WELL-RIG X BJ X 19:12 I 0 0 0 0 CMT Finish cleaning out mix system. 19:15 477 0` 4 0 CMT Down hole with CMT at 15.8 ppg. 19:35 I 170 0 1.9 80.2 CMT Finish CMT 80.2 bbl down hole. 19:44 ( 115 0 4 12 WATER 12bbI water(picked up to protect from further loss of water from rig). 19:50 T 45 0 1.9 24 MUD 24bbl displacement(12 water/12 mud). 19:55 1 52' 0 3 30 Ij MUD 30 bbl displacement(12 water/18 mud). 19:58 ___.__ _ _ __ ___. Turn over well to rig. 20:00 ; 1 Hold rig down meeting. _____. �._ I Thank you for calling Baker Hughes Pressure Pumping. PSI TO TEST BBLCMT I TOTAL PSI SPOT SERVICE SUPERVISOR SIGNATURE: BUMPED BUMP FLOAT RETURNS/ BBL LEFT ON TOP OUT PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT Y N 0 Y N 0 150 0 Y N Repos Pnntod on S0-191303.O7 56 Page 2 0 0 M i (6dd) ienpy Ausue co ch �v 0 Iv o ce)o °° i S N C -..---'' 6 o ,.. _ .e hi pa E o qm M H fr 1 r,. 1 s O _ E - CO o i (.i .1 ra i v. r LL 1 O in j� i r i c 11. ' -------- •- , i-- - .. --i m = c co c.) a 16 co ri a r,"* 3 S n _ - -7. . _________;," „c„...,,,,_ ' s 40 CO 40CU 01 o 2vk8' i —, ri © J `-66 r. 7• Ob a '' W 0 t� '• 04 co A. L .• m .5co k y - I li . L .ale dagZ y "� t z -;v 3 _ --,; m i 1 1 c C1 0 a 111).• (wdgj emu Lps!0 r L� 0 1 i -- o l 1 o L .- _ _ (tsd) 1,-81nssaid 1 co m Operator Name: BUCCANEER ALASKA OPERATIONS LLC V�.. Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 11,000 ft Depth (MD) 11,396 ft Hole Size 6.75 in Liner Size/Weight 4 1/2 in, 12.6 lbs/ft Pump Via Drill Pipe 4"O.D. (3.340" .I.D) 14 Casing 4 1/2" O.D. (3.958" .I.D) 12.6 Total Mix Water Required 1,924 gals Weighted Spacer Seal Bond 40 bbls Density 11.0 ppg Slurry Class G 388 sacks — Density 15.8 ppg Yield 1.18 cf/sack Displacement Displacement Fluid 127 bbls Report Printed on September 27,2013 3'.55 Pr.1 Page Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • Operator Name: BUCCANEER ALASKA OPERATIONS LLC r�.■ Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner HUGHES Date: September 23, 2013 Proposal No: 1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft)MEASURED D TRUE VERTICAL 6.875 CASING I 9,498 I 9,301 6.750 HOLE I 11,396 I 11,000 SUSPENDED PIPES DIAMETER (in) I WEIGHT I DEPTH(ft) O.D. � I.D. (lbs/ft) MEASURED I TRUE VERTICAL 4.500 I 3.958 I 12.6 I 11,396 I 11,000 Drill Pipe 4.0 (in)OD, 3.34(in)ID, 9,298 ft 14(lbs/ft)set @ Liner 4.5(in)OD, 3.958(in) ID, 10,996 ft 12.6 (lbs/ft) set @ Depth to Top of Liner 9,298 ft Float/Landing Collar set @ 10,996 ft Mud Density 10.40 ppg Est. Static Temp. 175 ° F Est. Circ.Temp. 135 ° F VOLUME CALCULATIONS 200 ft x 0.1473 cf/ft with 0% excess = 29 cf 1,898 ft x 0.1381 cf/ft with 50% excess = 393 cf 400 ft x 0.0854 cf/ft with 0% excess = 34 cf (inside pipe) TOTAL SLURRY VOLUME = 457 et- 81 bbls Re°oPted Page 8 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC Irdi Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS Weighted Spacer 40.0 bbls Seal Bond + 19 lbs/bbl Potassium Chloride + 131.2 lbs/bbl Barite- Sacked @ 11 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 457 / 1.18 = 388 sacks Class G Cement+ 0.005 lbs/sack Static Free+ 1.2% bwoc BA-56 + 0.3% bwoc R-3 + 3% bwow Potassium Chloride +0.5% bwoc EC-1 + 0.4% bwoc CD-32 + 1 gals/100 sack FP-6L+ 0.2% bwoc Sodium Metasilicate +44% Fresh Water Displacement 126.6 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.18 Amount of Mix Water (gps) 4.96 Amount of Mix Fluid (gps) 4.97 ... September 27,2013 3:55 PM Gr4129 Page 9 Have more questions? You can find us at: http:/lwww.bakerhughes.com/products-and-services/pressure-pumping Rev. D //as Siest Coast Area Laboratory Repor 5-20-13 BAKER HUGHES Report#: CMT037113B Company: Buccaneer Alaska District: Kenai Depth MD: 10897 Field: Kenai Loop Job Type: Liner Depth TVD: 10702 Well: KL 1-4 Hole Size: 6 3/4" BHST: 173 Prepared for: Pete Berga Casing Size: 4 1/2" BHCT 135 Submitted by: Ken Nix Cement: Class G Water: Fresh -Tap Tested b : Yarbrou•h Lot#: Alaska Date: 8/9/13 Slurr Desi.n: s R-3 0.3 %BWOC A-9 (KCI) 3 % BW OW Base 1 Class G 1 100 % EC-1 0.5 %BWOC FP-6L 1 ;al/100sacl Additives CD-32 0.4 % BWOC Static Free 0.005 lb/sack A-2 (SMS) 0.2 % BWOC BA-56 1.2 % BWOC Density: I 15.8 I ppg I Yield: I 1.18 j ft3/sack I Mix Water: 4.952 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 60 rpm 30 rpm 6 rpm 3 rpm Bingham PV YP Ambient Plastic 135 F 0 241 159.5 100.5 74 51 23.5 16 216 24 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0 Strength Fluid Loss: 28 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): ,,„ Machine: S•on.e r,wp bc: 50 bc: 70 bc: 3:53 100 bc: 600 — 40000— 100 ----- _ 540 — 36000 90 480 = 32000_ 80 __ _ _____ __.__._____,_ 420 = 28000_ 70_. _ _ __ _ ... _. r ... ...... ., ... . .... .. _. _.._ _,_ ,. 360 = 24000_ 60 _:.. __....- ... ....... ......_.___._____ _ti , 300 — 20000— 50 '.... 240 — 16000_ 40_ -___.._ ......._ _. 1 80— 12000 4 I I 30— __.__ __.___ ._ ._ ,v _ 120- 8000_ 20—. .._. _._ _ ._._ _._. 60 - 4000— 10—-.. _ ___ .__.._...._-..-- _._..__._..-_ _.._ 0 0 - 0 0:00 0:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 Tirr,o(HH:NTA) Compressive Strength Data: i-iui. 17:49 19:44 8 p. 12 hr 24 hr 48 hr 72 hr 96 hr i.. i 173 © 50 .si 500 .si -- 1512 2965 ---- 4-00 11 8 — 5000 _- _ 360 _ 16 — 4500 —ti... __'_._'_. 320 — 14 — 4000 — 2803500 3500 . _ _. _ _ - 12 — IP 1 240 — _ 3000 1O — 200 — - 2500 _ 8 - _ o 1s0 — = 2000 --'--- ----------- -- _. _._.___ _._- _._ __. 120 — 6 - 1500 _ _. .. _._. O - : - 80 — 4 -= 1 000 —' 40 — 2 500 _. _ . ..._. O 12 24 36 48 Time (I-U-n Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage,whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. • • Buccaneer Energy Well: Kenai Loop KL 1-4 CemFACTS Report Design Date: 6/18/13 Service Type: 4 1/2" Liner Baker Hughes Representative: Ken Nix rpI BAKER HUGHES Advancing Reservoir Performance Fd im Baker Huge CemFACTS Program Version 5.0 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Service Information Design Date: 6/18/13 Customer: Buccaneer Energy Well: Kenai Loop KL 1-4 State: AK Service Type: 4 1/2"Liner Service District/Boat: Kenai Baker Hughes Representative: Ken Nix Well Description Well Depth: 10897 ft Shoe Depth: 10897 ft Landing Collar Depth: 10817 ft Cement Top: 9246 ft Previous Shoe Depth: 9496 ft Liner Hanger Depth: 9246 ft Surface Temperature: 55 °F Static BHT: 173 °F Circulating BHT: 135 °F Surface Line Length: 50 ft Surface Line ID: 1.750 in Cement Excess: Increase Hole Size(s) Hole Dia. From To in ft ft 6.875 0 9496 6.750 9496 10897 Casing OD ID Weight From To in in Ibm/ft ft ft Drill Pipe _ 4.500 3.826 16.60 0 9246 4 1/2"Liner 4.500 3.958 12.60 9246 10897 Miscellaneous Treating Line Volume: _ 0 bbl Pipe Vol Above Collar: 155 bbl _ Pipe Vol Below Collar: 1 bbl _ Annulus Volume: 297 bbl Displacement Volume: 156 bbl Total Volume: 454 bbl Casing Wt(Air): 171055 lbf Casing Wt(Eff): 138463 lbf Wellbore Start End Hole Casing Casing Summary MD MD TVD ID OD ID ft ft ft in in in Cased 0 9246 9051 6.875 4.500 3.826 Cased 9246 9496 9301 6.875 4.500 3.958 Open 9496 10897 10702 7.462 4.500 3.958 Baker Hughes 1 06/18/13 r�.. Baker Huge CemFACTS Program Version 5.0 Job Number. BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluids ( 4 Total) Fluid 1 Type: Initial Mud Fluid Description: Drilling mud Gel Strength: 4.0 lbf/hft2 _ Plastic Viscosity: 10.0 cp Yield Point: 24.0 lbf/hft2 Density: 10.40 ppg Fluid 2 Type: Preflush or Spacer Fluid Description: Seal Bond n: 0.6040 K: 0.7098 Ibf.s^n/hft2 Yield Point: 2.4 lbf/hft2 Density: 11.00 ppg Fluid Volume: 40 bbl Water: 100.0_ % Water Volume: 40 bbl Net Height: 1524 ft Total Height: 1524 ft Top: 7722 ft Bottom: 9246 ft Displacement Rate: 4.00 bpm Contact Time: 10.0 min Mixing Rate: 4.00 bpm Fluid 2 Additives 0.0% 0.0 Ibm Fluid 3 Type: Cement Slurry(Slurry) Fluid Description: Cement n: 0.6799 K: 3.3300 Ibf.s^n/hft2 Yield Point: 0.1 lbf/hft2 Density: 15.80 ppg Cement Yield: 1.1590 ft3/sack Total Cement: 271 sacks Slurry Volume: 56 bbl Water: 4.91 gal/sack Water Volume: 32 bbl Excess: 40.0 Excess: 0 ft Net Height: 1651 ft Total Height: 1651 ft Top: 9246 ft Bottom: 10897 ft Mixing Rate: 19.4 sack/min Mixing Rate: 4.00 bpm Baker Hughes 2 06/18/13 Baker Huge CemFACTS Program Version 5. 11 /gal Baker 9 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid 3 Additives 10.0% 0.0 Ibm Fluid 4 Type: Displacement Fluid Description: Displacement Plastic Viscosity: 10.0 cp Yield Point: 24.0 Ibf/hft2 Density: 10.40 ppg Fluid Volume: 156 bbl Water: 100.0 % Water Volume: 156 bbl Total Height: 10817 ft Top: 0 ft Bottom: 10817 ft Operating Schedule Segment Volume Rate Time Cum.Time bbl bpm min min Seal Bond 40 4.00 10.0 10.0 Cement 56 4.00 14.0 24.0 Shut-Down 0 0.00 15.0 39.0 Displacement 156 10.00 15.6 54.6 Flow Inner Outer Pump Fluid Rey. Qmin Ref. Behavior Dia Dia Rate Vel. No. Turb. Temp. in in bpm ft/min bpm °F Drilling mud 5.500 8.750 6.00 133.4 6031 12.17 Seal Bond 5.500 8.750 6.00 133.4 56957 0.32 Cement 5.500 8.750 6.00 133.4 4872 6.20 Displacement 5.500 8.750 6.00 133.4 353 32.86 5.500 8.750 6.00 133.4 129 49.37 5.500 8.750 12.00 266.7 14239 2.53 Summary Slurries Mixing Time: 14.0 min Displacement Time: 15.6 min Net(From Cement Mixing): 44.6 min Total(From Start): 54.6 min Baker Hughes 3 06/18/13 FA.. Baker Huge CemFACTS Program Version 5.• Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Density Pore Den ECD Frac DP-- @ 252 bbl 9400 9500— 10000 t - .r 0 w to m - 2 10500 1 1 0 12 14 16 Density Baker Hughes 4 06/18/13 rata Baker Huge Cern FACTS Program Version 5.• Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 ECD @ Critical Depths 20 1 1 1 I i 1 i — J —4000 15 -- —10 Fr) Co a c .Q a) _c 10 @ d Cl) CG x - c W N N o c v - a w cn w —2000 —5 - 5 — 0 1 i 1 \ I 1 1 1 1 - 20 40 55 Elapsed Time(min) Baker Hughes 5 06/18/13 .P.. Baker Hug. CemFACTS Program Version 5.0 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 -o MD=10897 ft, Volumes in bbl - Design Actual Stage - 252 W. _ - 252 Slurry Total 247 Return Total 40 40 01. Seal Bond 56 56 02. Cement -2500 0 0 03. Shut-Down 156 51M= 156 04. Displacement -5000 -7500 -10000 Baker Hughes 6 06/18/13 FARO Baker Huge CemFACTS Program Version 5.0 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Wellbore Diagram 0 Drilling mud(0 ft) -Seal Bond(7722 ft) -Cement(9246 ft) IM Displacement(10817 ft) 2000— 2000 4000- 4000 C , R 6000— 6000 \ \\ 8000- 8000 10000 10000- 10702— 10897 0 1397 Offset, ft Baker Hughes 7 06/18/13 Fail-■ Baker Huge CemFACTS Program Version 5.0 Job Number. BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid Displacement/Placement Standoff(%) Effectiveness (%) 9496 ft Cement 100 u 1 100 , 100 100 1 100 100 k: 100 100 Y1 100 100 . 100 '' 100 - -10000 a�' 100 i. 100 ,,. 100 100 100 100 100 ,; 100 100 Il. 100 100 ' 100 4t' 100 100 100 41 100 100 100 100 � 100 i , 1 100 1 10897 ft 0 67 100 -180 0 180 Baker Hughes 8 06/18/13 .A.. Baker Huge CemFACTS Program Version 5.• Job Number. BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Disclaimer Notice Baker Hughes personnel will use good faith at all times in interpreting information, making recommendations, (either written, or oral) as to the type or amount of products, equipment or services to be furnished, the manner of performance, or in predicting results to be obtained.The recommendation and projections given are estimates based on calculations produced by a computer model including various assumptions regarding the well, reservoir and treatment. Due to the uncertainty of variable well conditions and the necessity of relying on facts and supporting services provided by the Customer and its other contractors, Baker Hughes hereby disclaims the accuracy of any chart interpretation, research, analysis,job recommendation or other data furnished by Baker Hughes. Such data shall include the attached report, any similar information provided electronically and any data generated through real-time monitoring. NO WARRANTY IS GIVEN CONCERNING THE EFFECTIVENESS OF THE PRODUCTS OR EQUIPMENT USED, RECOMMENDATIONS GIVEN OR SERVICES RENDERED. NO WARRANTIES, EXPRESS OR IMPLIED ARE MADE AND ALL SUCH WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABLITY OR FITNESS FOR A PARTICULAR PURPOSE,ARE HEREBY EXCLUDED AND DISCLAIMED BY BAKER HUGHES. Baker Hughes 9 06/18/13 • • vu BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Top of Liner Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 S • VPII CEMENT JOB REPORT BAKER HUGHES CUSTOMER BUCCANEER ALASKA OPERA DATE 25-SEP-13 F.R.P 10011015938 SERV.SUM CECIL J JONES LEASE&WELL NAME LOCATION COUNTY-PARISH-BLOCK KENAI LOOP Ai-4-API 50133208180000 33-6N-11W Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG I TYPE OF JOB Kmai Liner _ALM L TYPE OF PLUGS UST-CSG-HARDWARE MECHANICAL BARRIERS MD TVD HANGER TYPES pm TND 'Bridge Packer I 9860 PHYSICAL SL4JRRY PROPERTIES , SACKS SLURRY SLURRY PUMP Bbl OF WGT YLD WATER TIME Bbl MIX MATERIALS FURNISHED BY BJ LAB REPORT NO. CEMENT PPG FT3 GPS HR:MIN SLURRY WATER Class G 145 15.8 1.18 496 304 17.12 Displacement Fluid ____ __ 9.6 901 Fresh Water ! 8.3 5 Fresh Water 1 - 8.3 3.26 _ Available Mix Water 500 obi. Available Disp&Fluid 100 Bbl. TOTAL I 128.66 17.12 HOLE TBG-CSG-D.P. COLLAR DEPTHS SIZE . %EXCESS . DEPTH ' IID b war. . JYeE , MD W15-1 MAIM ! IL OAT , STAGE , 6.75 9883 2.151 2.875 10.4 DP 1816 3.34 4 14 DP 80481 LAST CASING PKR.CMT RET-BR PL-LINER PERF.DEPTH I TOP CONN WELL FLUID ID OD ,INI3T'__ TYPE MR_TYLt MANO&TYPE DEPTH TOP I BITS. .. CZE ..i.IRIEAD TYPE I WGT. 6.91 m 7.63 29.7 94981 9301 Cement Retainer 9900 9870 9872, 21 15021 BRINE I 9.2 4.5 12.6i CSG 10897 I 9870 9872 6.91 =PL.VOLUME DISPL FLUIDCAL PSI CAL MAX PSI OP.MAX ' MAX PSI MAX CSO PSI �__ TBG MIX WATER VOLUME UOM TYPE WOT. (BUMP PLUG TO REV. SQ.PSI RATED Operator RATED Operator . 95.4 BELS Displacement Fluid 9.6 Rig Circulation Prior to Job Circulated Wel: Rig X BJ Circulation lime: Circulation Rate: BPM Mud Density In: 9,8 LBS/GAL Mud Density Out: 9.6 LBS/GAL PV&YP Mud in: PV&YP Mud Out: Gas Present NO X YES Units: Solids Present at End of Circulation: NO X YES Displacement And Mud Removal Displaced By: Rig BJ Amount Bled Back After Job: BBLS Returns During Job: NONE PARTIAL X FULL Method Used to Verify Returns: Cement Returns at Surface: YES n NO Were Returns Planned at Surface: X NO YES Pipe Movement ROTATION RECIPROCATION NONE UNABLE DUE TO STUCK PIPE Centralizers: X NO YES Quantity: Type: BOW RIGID Job Pumped Through: CHOKE MANIFOLD SQUEEZE MANIFOLD MANIFOLD NO MANIFOLD Plugs Number of Attempts by BJ: 1 Competition: Wiper Balls Used' X NO YES Quantity: Plug Catcher Used: X NO YES Parabow Used: X NO ' I YES Was There a Bottom: X NO YES Top of Plug: FT Bottom of Plug: FT Squeezes(Update Original Treatment Report for Primary Job) BLOCK SQUEEZE SHOE SQUEEZE TOP OF LINER SQUEEZE ,X PLANNED UNPLANNED Liner Packer X NO YES Bond Log: X NO YES PSI Applied: Fluid Weight: LBS/GAL Casing Test(Update Original Treatment Report for Primary Job) Casing Test Pressure: 4800 PSI With 9.6 LBS/GAL Mud Time Held: 00 Hours 05 Minutes EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: Report Prgwtl on SEP45-13 23 05.78 Page 1 ., " • S IN Jill CEMENT JOB REPORT j BAKER irs Shoe Test(Update Original Treatment Report for Primary Job) ^ Depth Drilled out of Shoe: FT Target EMW: LBS/GAL Actual EMW: LBS/GAL Number of Times Tests Conducted: Mud Weight When Test was Conducted: LBS/GAL Problems Before Job(I.E.Running Casing,Circulating Well,ETC) Problems During Job(I.E.Lost Returns,Equipment Failure,Bulk Delivery,Foaming,ETC) Transmission oil pressure on pump unit showing 240-275psi along with error code M1/M2 at console. Problems After Job(I.E.Gas at Surface,Float Equipment Failed,ETC) PR I RATE DETAIL EXPLANATION TIME PRESSURE•PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP, X HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 4800 PSI .— CIRCULATING WELL - RIG X BJ 12:34 1 I 9-25-13 Arrive on location(C.Jones,J.Cress,C.Zoda,G.Gonzales,FL 12:39 I Hold meeding with Joe the DSM. 13:04 Hold rig up meeting with crew. —_._.. 13:12 Prep equipment for job. 13:55Stand by 15:30 —1 I Hold safety meeting on rig floor. 16:13 IIIIIIIIIj "'Start Jobe' 16:20 I Pick up brime and test rate shipped . ... 16:21 1 Unsling from packer 16:27 122 0+ 2 3 BRIM prime lines with 9.6 ppg brine. 16:34 600 0 i 0 0 BRIME Low psi test 16:37 4800 0 0 0 BRIM High psi test 16:43 4645 0 0 I 0 BRIME bleed off pressure. 16:43 0 0 0 0 BRIME Sting in 16:45 1400 0 1 3 BRIME Start injection test la lbpm pressure reached 1400 and broke back to 500psi 04:48 10001 0 3 1 BRIME Increase rate to 3bpm pressure steady at 1000psi fort lbbl then jump to 1500psi 16:57 1051 0 3 10 BRIME 10 bbl away of injection rate. 17:00 i 1511 0 3 20 BRIME pressure jumped at 11 bbl pumped into injection rate 17:03 ' 1520 0 3 30 BRIME Shut down at 30 bbl pumped(3bpm. 17:08 f 0 0 5 18 H2O Clean out brime from pumps and lines in prep for cmt job. 17:33 0 0 0 0 H2O pick up clean water for mixing ant. _ 17:37 1500 0 3 5 H2O Pump 5 bbi fresh water spacer ahead of cmt. 17:40 0 0 0 0 1120 Pump operator reports transmission pressure is 100psi above normal. 17:41 0 0' 0 0 1120 Inform company man of issues. 18:10 01 0 0 0 H2O After consulting with shop mechanic travel to shop to pick up proper fitters and extra fluid(suspect filter clog). 18:24 0 1 01 0[ 0 H2O Mechanic having trouble finding filter/Call made to mobilize replacement unit as back up. 19:32 0 0 0' 0 H2O Mechanic on location with items. _ 19:35 0 0 0 0 1420 DSM Dave Reid informed/Rig stings in and breaks circulation. 20:06 930 0 3 5 1120 5bbl fresh water spacer ahead of cmt. 20:12 28 0 0 0 CMT Batch up 15.8ppg ant. ____ 20:19 241 0 3 1 CMT Down hole with ant. 20:23 848 0 3 10 CMT 10 bbl down hole. 20:26 I 697 0 3 20 CMT 20 bbl down hole. 20:33 90 0 2 32 CMT 32 bbi down hole Repot Prxlo0co seri,23,. Page 2 man • • Piing(.., )JOB REPORT BAKER HUGHES PRESSNREIRATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR'MI'I. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 4800 PSI CIRCULATING WELL - RIG X BJ 20:34 40 0 1.6 3.3 H2O 3.3bb1 displacement spacer(fresh water). 20:39 53 0 3 1 BRIME displacement starts. 20:44 74 0 3 12.6 BRIME Brim.Displacement 20:46 73 0 3 25.2 BRIME Brims Displacement 08:49 74 0 3 37.8 BRIME Brims Displacement 08:52 281 0 3 50.4 BRIME Brime Displacement 20:56 201 0 3 63 BRIME Brine Displacement 21:00 381 0 3 75.6 BRIME Brime Displacement 21:04 970 0 3 88.2 GRIME Brime Displacement - ... 09:09 20001 0 3 90 BRIME Shut down(total displacement 93.3 bbl) 781 0 0' 90 BRIME Rig unsting. hold safety meeting I l-___—_ wash up units. _..J. Thank you for giving Bill-PP the call 1 PSI TO TESL' BBLCMT TOTAL PSI SPOT 80rvf� BUMPED BUMP FLOAT RETURNS! BBL LEFT ON TOP OUT -- PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT r Y N 0 Y N 0 0 0 f Y N ""0' Rpml Pme.d.., ser-29-13 nos so Page 3 0 • w Pressure_1 (psi) ar aim. o o tql C7 0 O I Al O , Disch Rate (bpm) o cow o 0 0� `zZPr S o ic" CP .p r fes., _ �� S . W O lb m r7L_2-_ _ - - ..4m = 0 3 rt 0 t_ - -a a' O 3 ( 13 Co S) ( w (.0 -.13 3 uNi w ;57-5; 4thw3 wo .. . _ ,a os --w 3 P` - rn , coo --i Q CD `..1._ . N M Q ! ! - w 3 CD CY1 Li, (40 o •-b. :ii. o 0 oW N CODensity Actual (ppg) 4140 W . • • W CO °' Pressure 1 (psi) r. C-1; — I CJI o CMIR s o o 011M1 I I i i I i I I � =7�.1 Disch Rate (bpm) H . CO Co N O O O C N I I I I I I I I I I I I I -, CO n O CO W O 0.1 y O 3 = Q N c O - 92 n _ o m O P ; r z co cr m (D i top a1 (I) a C ' a (D J 17 Cp is a) " O I 3 T / N CD v X p 5.N 0 o E = m O w ci r• in F cil 3 CO y 3 w N mM n Q 0 Q CO O C_ o O CD tri v40 r m np CD 7 (7) N O (n O CD CD _N N N I I I I I I I I I 1 I I I I 1 3 CD Cri N O N W A O O O cr CP, `' `� Density Actual (ppg) N 01 N O W_ Operator Name: BUCCANEER ALASKA OPERATIONS LLC ram Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner Squeeze HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 9,883 ft Depth (MD) 9,883 ft Hole Size 6.75 in LinerSize/Weight 41/2in, 12.6 lbs/ft Pump Via Drill Pipe 2 7/8"O.D. (2.441" .I.D) 6.85 Casing 4 1/2"O.D. (3.958" .I.D) 12.6 Total Mix Water Required 694 gals Slurry Class G 140 sacks Density 15.8 ppg Yield 1.18 cf/sack Displacement Displacement Fluid 63 bbls Report Rented on September 27,20133:55 PM Page 10 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping i Operator Name: BUCCANEER ALASKA OPERATIONS LLC IMRE Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner Squeeze HUGHES Date: September 23, 2013 Proposal No: 1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 6.875 CASING I 9,498 I 9,301 6.750 HOLE I 9,883 I 9,883 SUSPENDED PIPES DIAMETER (in) I WEIGHTDEPTH(ft) O.D. I.D. (lbs/ft) I MEASURED I TRUE VERTICAL 4.500 I 3.958 I 12.6 I 9,883 I 9,883 Drill Pipe 2.875(in) OD, 2.441 (in) 9,273 ft ID, 6.85(lbs/ft)set @ Liner 4.5(in)OD, 3.958(in) ID, 9,883 ft 12.6(lbs/ft)set @ Depth to Top of Liner 9,273 ft Float/Landing Collar set @ 9,883 ft Mud Density 10.40 ppg Est. Static Temp. 153 ° F Est. Circ.Temp. 135 ° F VOLUME CALCULATIONS 225 ft x 0.1473 cf/ft with 0% excess = 33 cf 385 ft x 0.1381 cf/ft with 100% excess = 106 cf TOTAL SLURRY VOLUME = 139 cf = 25 bbls Report Pooled on September 27,2013 3'.55 PM Page 11 Have more questions? You can find us at: http://www.bakerhughes.com/products-a nd-services/pressure-pumping • Operator Name: BUCCANEER ALASKA OPERATIONS LLC EMI Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner Squeeze HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 139 / 1.18 = 140 sacks Class G Cement+0.005 lbs/sack Static Free + 1.2% bwoc BA-56 +0.3% bwoc R-3 +3% bwow Potassium Chloride +0.5% bwoc EC-1 + 0.4% bwoc CD-32 + 1 gals/100 sack FP-6L+ 0.2% bwoc Sodium Metasilicate +44% Fresh Water Displacement 63.0 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.18 Amount of Mix Water (gps) 4.96 Amount of Mix Fluid (gps) 4.97 Report Printed on September27,2013 3:55 PM Page 12 Have more questions? You can find us at: htt ://www.bakerhu hes.com/ roducts-and-services/ ressure- um in P 9 P P P P 9 Rev. D BAKERyaks est Coast Area Laboratory Report. 5-20-13 HUGHES Resort#: CMT037113B Client/Well Information: Company: Buccaneer Alaska District: Kenai _ Depth MD: 10897 Field: Kenai Loop Job Type: Liner Depth TVD: 10702 Well: KL 1-4 Hole Size: 6 3/4" BHST: 173 Prepared for: Pete Berga Casing Size: 4 1/2" BHCT 135 Submitted by: Ken Nix Cement: Class G Water: Fresh-Tap :, .mn• •w Yarbrou•h Lot#: Alaska Date: 8/9/13 Slurry Design: 11111111111F. inal R-3 0.3 %BWOC: A-9(KCI) 3 %BWOW Base I Class G 1 1001 % EC-1 0.5 %BWOC FP-6L 1 ,al/100sacl Additives CD-32 0.4 % BWOC Static Free 0.005 lb/sack A-2 (SMS) 0.2 % BWOC BA-56 1.2 % BWOC Slurry Properties: Density: 15.8 ppg Yield: 1.18 ft3/sack Mix Water: 4.952 gal/sack Rheology:_ 600 rpm 300 rpm 200 rpm 100 rpm 60 rpm 30 rpm 6 rpm 3 rpm Bingham PV YP Ambient Plastic 135 F 0 241 159.5 100.5 74 51 23.5 16 216 24 Gel 10 sec 10 min 100 Ib/sgft_500 lb/sqft Free Water: 45 deg 0 Strength Fluid Loss: 28 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): Machine: Sponge 30 bc: 50 bc: 70 bc: 3:53 109 Jac; 600 = 40000— 100---- ... 540 = 36000-790-- --_ _- _- -._ . _ _____.._.__ .. -..!- 480 = 32000— 80 ____.___.__ ________. ._______..__. ._____ ._ 420 = 28000_ 70_-_ -_ _._- _-. - - _ -_ -__-- _ .- .. .. _. _ .. _. __-_-'__.__-_- _ + 360 — 24000— lQ°i 60 : -___.___._ _._______ ___.-_.____---__-__.___ ____ -___.._-__._ 300 — 20000 _ 50--- _ _ _._ L 1 ___ 240 -7 ,6000_ 40_ _ -- -'- =-- 180 r,- ,2000 _ 30- - _..__ _._._ _ -- 1 _ 120 _ 8000= 20---- ---.._ -'- - r "--- - --' -'--.. 60 - 4000-710= 75. 0:00 0:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 TInrs(I-IH:IVwv Compressive trength Data: ... w,.,,,., Temp 17:49 19:44 8 hr 12 hr 24 hr 48 hr _ 72 hr _ 96 hr 173 I F 50 psi 500 psi 1512 2965 4-00 18 — 5000 — 360 =- 16 — -4500 ___.= �- 320 _ 14 — 4000 -____-______-_-_-_-___'____. - -.. - 280 — - 3500 - 12 — 240 — = 3000 — _______________---\7 10 8 -----E- _ -- 200 — 2500 — - - - - _ --0 160 — = 2000 —7"- -- -- - _ -. 120 — 6 - 1500 --- -— O = _ 80 — 13 4 7 1000 40 —- 2 500 — O 1 2 24 36 48 Time (HiF-1) Comments: I Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage,whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. • FMII CONDITIONS BAKER HUGHES The services and products will be provided under the attached Baker Hughes Incorporated Worldwide Terms and Conditions. By requesting that Baker Hughes provide the services and products described herein, Customer accepts all of the terms and conditions of this proposal, including the attached Baker Hughes Incorporated Worldwide Terms and Conditions. In the event that Customer and Baker Hughes have executed a Master Services Agreement covering the services and products to be provided,such Master Services Agreement shall govern in place of the Baker Hughes Worldwide Terms and Conditions. Report Printed on: SEP-27-13 03:55 Gr4175 • • NOTE:THIS AGREEMENT CONTAINS PROVISIONS THAT INDEMNIFY AND/OR RELEASE THE INDEMNIFIED AND/OR RELEASED PARTY FROM THE CONSEQUENCES OF ITS OWN NEGLIGENCIIIII F/11111 AND OTHER LEGAL FAULT. BAKER TERMS AND CONDITIONS HUGHES Worldwide Orders for rental equipment("Equipment"),services("Services"),end the supply or sale of products,chemicals,or NOTWITHSTANDING PARAGRAPH B.ABOVE,SHOULD CUSTOMER FAIL TO RECOVER SUCH TOOLS equipment("Products")to be provided by Baker Hughes Incorporated through its direct or indirect subsidiaries(in each LOST IN THE WELL,OR SHOULD SUCH TOOLS BECOME DAMAGED IN THE WELL,OR DAMAGED case such subsidiary is referred to herein as"BHI"end shall be severally liable for all obligations of BHI herein arising DURING RECOVERY,CUSTOMER SHALL REIMBURSE BHI FOR THE COST OF REPAIRING ANY TOOLS from or related to the order)to its customers(each a"Customer')are subject to acceptance by BHI,and any orders so SO DAMAGED,OR THE REPLACEMENT VALUE OF ANY SUCH TOOLS THAT ARE LOST OR NOT accepted will be governed by the terms and conditions stated herein and any additional terms proposed or agreed to in REPAIRABLE. writing by an authorized representative of BHI(these terms and conditions and any such additional terms collectively referred to herein as the"Agreement"). FURTHER,NOTWITHSTANDING PARAGRAPH B.ABOVE,ALL RISKS ASSOCIATED WITH LOSS OF OR DAMAGE TO TOOLS WHILE IN THE CUSTODY OR CONTROL OF CUSTOMER OR DURING 1.pAYMFNT TERMS TRANSPORTATION ARRANGED BY OR CONTROLLED BY CUSTOMER,SHALL BE BORNE BY Unless alternate payment terms are specified or approved by the PHI Credit Department,all charges billed by PHI must CUSTOMER. be paid within thirty(30)days of the date of invoice.For invoices unpaid after thirty(30)days,at BHI's option,discounts from list price may be revoked and interest maybe charged at the rate of ten percent(10%)per annum unless such rate E.NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT TO THE CONTRARY,CUSTOMER contravenes local law in which case the interest will accrue at the maximum rate allowed by law.Operating,production SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST or well conditions that prevent satisfactory operation of Equipment,Services or Products do not relieve Customer of its ANY AND ALL CLAIMS ASSERTED BY OR IN FAVOR OF ANY PERSON,PARTY,OR ENTITY(INCLUDING payment responsibility. PHI INDEMNITEES)ARISING OUT OF OR RELATED TO:(1)LOSS OF OR DAMAGE TO ANY WELL OR HOLE(INCLUDING BUT NOT LIMITED TO THE COSTS OF RE-DRILL AND SIDETRACK),(II)BLOWOUT, 2.SAN(:FI I ATION ANO RFTIIRN$ FIRE,EXPLOSION,CRATERING OR ANY UNCONTROLLED WELL CONDITION(INCLUDING BUT NOT products:Orders for Products that are subject to cancellation after acceptance by BHI,but before delivery,will be LIMITED TO THE COSTS TO CONTROL A WILD WELL AND THE REMOVAL OF DEBRIS),(Ill)DAMAGE TO subject to a restocking charge of at least twenty-five percent(25%),plus any packing and transportation costs incurred ANY RESERVOIR,GEOLOGICAL FORMATION OR UNDERGROUND STRATA OR THE LOSS OF OIL, before delivery.Products specially built or manufactured to Customer specifications,or orders for substantial quantities WATER OR GAS THEREFROM,(IV)THE USE OF BHI INDEMNITEES'RADIOACTIVE TOOLS OR ANY manufactured specially for Customer,may not be cancelled. CONTAMINATION RESULTING THEREFROM(INCLUDING BUT NOT LIMITED TO RETRIEVAL OR CONTAINMENT AND CLEAN-UP),(V)POLLUTION OR CONTAMINATION OF ANY KIND INCLUDING BUT Products may be returned for credit only with prior written authorization from BHI.Such Products must be unused,in NOT LIMITED TO THE COST OF CONTROL,REMOVAL,CLEAN-UP AND REMEDIATION,OR(VI)DAMAGE reusable condition,and with original unopened containers.Credit will be issued for the quantity returned at the original TO,OR ESCAPE OF ANY SUBSTANCE FROM,ANY PIPELINE,VESSEL,OR STORAGE OR PRODUCTION purchase price,less a restocking charge of at least twenty-five percent(25%)and any actual packing and transportation FACILITY. costs incurred by BHI.No credit will be given for shipping charges incurred by Customer. F.CUSTOMER ACKNOWLEDGES THAT CUTTINGS AND WASTE REMAIN CUSTOMER'S Eauioment/Services:In the event Customer cancels an order for Services,Customer shall be liable for all costs incurred RESPONSIBILITY.CUSTOMER SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES by BHI in the mobilization/demobilization related thereto,and any other reasonable costs incurred by PHI incident to such HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS,ASSERTED BY OR IN FAVOR OF ANY PERSON cancellation.In the event Customer cancels an order for Equipment,Customer shall be liable for any transportation OR ENTITY ARISING OUT OF OR RELATED TO THE TRANSPORTATION,STORAGE,TREATMENT, costs incurred by PHI in the mobilization/demobilization of the Equipment.In addition,a restocking charge of at least DISPOSAL OR HANDLING OF CUTTINGS AND WASTE,INCLUDING,WITHOUT LIMITATION, twenty-five percent(25%)of the original Equipment order may be applied at BHI's sole discretion. CONTAMINATION OF,OR ADVERSE EFFECTS ON THE ENVIRONMENT OR ANY FORM OF PROPERTY, OR ANY VIOLATION OR ALLEGED VIOLATION OF STATUTES,ORDINANCES,LAWS,ORDERS,RULES 3.THIRD-PARTY CHARGES TAXES AND REGULATIONS(INCLUDING,WITHOUT LIMITATION,ALL CLAIMS UNDER THE COMPREHENSIVE Customer shall pay all third-party charges,in compliance with Bill's current price list,and any sales,use,rental or other ENVIRONMENTAL RESPONSE,COMPENSATION,AND LIABILITY ACT("CERCLA"),42 U.S.C.§§0601 ET taxes that may be applicable to transactions hereunder.Customer shall pay all applicable customs,excise,import and SEQ.,OR OTHER APPLICABLE STATUTES OR REGULATIONS). other duties unless otherwise agreed to in writing by an authorized representative of BHI.Customer shall provide necessary import licenses and extensions thereof. G.CUSTOMER SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS FOR CONSEQUENTIAL DAMAGES ASSERTED BY OR IN FAVOR OF ANY 4.RISK OF LOSS AND TITLE CONSIONMFNT S70RArzF MEMBER OF CUSTOMER INDEMNITEES.PHI SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD Unless otherwise agreed to in writing between PHI and Customer:(i)for Product sales within the United States of CUSTOMER INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS FOR CONSEQUENTIAL America,title and risk of loss shall pass to Customer as soon as the Products depart BHI's point of origin;and(ii)for DAMAGES ASSERTED BY OR IN FAVOR OF ANY MEMBER OF PHI INDEMNITEES. Product sales outside the United States of America,INCOTERM 2010"CPT"shall apply with the following exception: TITLE AND RISK OF LOSS REMAIN WITH PHI UNTIL THE PRODUCTS REACH THE PORT OF ENTRY.For H.In the event this agreement is subject to the indemnity or release limitations in Chapter 127 of the Texas Civil Products provided on consignment,the risk of loss shall pass to Customer as soon as the Products depart BHI's point of Practices and Remedies Code(or any successor statute),and so long as such limitations are in force,each party origin;however,the title shall remain with PHI until the Product is used by Customer. covenants and agrees to support the mutual indemnity and release obligations contained in Paragraphs B.and C.above by carrying equal amounts of insurance(or qualified self-insurance)in an amount not less than U.S. In the event PHI agrees to store Products after title passes to Customer,the risk of loss shall remain with Customer.If $5,000,000.00 for the benefit of the other party as indemnitee. any such Products remain on BHI's premises for more than two(2)years from the date initially placed in storage,title shall revert beck to BHI,end BHI may resell or scrap any such Products with no liability to Customer for any proceeds I.THE EXCLUSIONS OF LIABILITY,RELEASES AND INDEMNITIES SET FORTH IN PARAGRAPHS B. generated therefrom. THROUGH G.OF THIS ARTICLE 5,AND ARTICLES B AND 10,SHALL APPLY TO ANY CLAIM(S)WITHOUT REGARD TO THE CAUSE(S)THEREOF INCLUDING BUT NOT LIMITED TO PRE-EXISTING CONDITIONS, 5. LIABILITIES,RELEASES AND INDEMNIFICATION: WHETHER SUCH CONDITIONS BE PATENT OR LATENT,THE UNSEAWORTHINESS OF ANY VESSEL OR A.In this Agreement(I)"PHI Indemnitees"means BHI,its parent,subsidiary and affiliated or related companies;its VESSELS,IMPERFECTION OF MATERIAL,DEFECT OR FAILURE OF PRODUCTS OR EQUIPMENT, subcontractors at any tier,and the officers,directors,employees,consultants,and agents of all of the foregoing;(ii) BREACH OF REPRESENTATION OR WARRANTY(EXPRESS OR IMPLIED),ULTRAHAZARDOUS "Claims"means all claims,demands,causes of action,liabilities,damages,judgments,fines,penalties,awards,losses, ACTIVITY,STRICT UABILITY,TORT,BREACH OF CONTRACT,BREACH OF DUTY(STATUTORY OR costs,expenses(including,without limitation,attorneys'fees and costs of litigation)of any kind or character arising out OTHERWISE),BREACH OF ANY SAFETY REQUIREMENT OR REGULATION,OR THE NEGLIGENCE, of,or related to,the performance of or subject matter of this Agreement;(iii)"Consequential Damages"means any GROSS NEGLIGENCE,WILLFUL MISCONDUCT,OR OTHER LEGAL FAULT OR RESPONSIBILITY OF ANY indirect,special,punitive,exemplary or consequential damages or losses(whether foreseeable or not at the date of this PERSON,PARTY,OR ENTITY(INCLUDING THE INDEMNIFIED OR RELEASED PARTY),WHETHER SUCH Agreement)under applicable law end damages for lost production,lost revenue,lost product,lost profit,lost business, FORM OF NEGLIGENCE BE SOLE,JOINT OR CONCURRENT,ACTIVE OR PASSIVE. lost business opportunities,or charges for rig time,regardless of whether the same would be considered direct,indirect, special,punitive,exemplary or consequential damages or losses under applicable law;(iv)"Customer Indemnitees" J.REDRESS UNDER THE INDEMNITY PROVISIONS SET FORTH IN THIS ARTICLE 5 SHALL BE THE means Customer,its parent,subsidiary and affiliated or related companies;its co-lessees,co-owners,partners,joint EXCLUSIVE REMEDIES AVAILABLE TO THE PARTIES HERETO FOR THE CLAIMS COVERED BY SUCH operators and joint venturers;its client or customer if it is not the end user of the Equipment,Services,or Products;its PROVISIONS. other contractors at any tier;and the officers,directors,employees,consultants,and agents of all of the foregoing;(v) "Cuttings end Waste"means any drill cuttings and associated muds,waste or materials from the well arising from or 6.DIRECTIONAL DRILLING processed pursuant to this Agreement;and(vi)"Tools"means Equipment and any of BHI Indemnitees'instruments, Customer shall furnish PHI with a well location plan(certified by Customer as correct)Betting out the surface equipment,or tools. location of the well,the lease,license,or property boundary lines,and the bottom hole location of Customer's directionally drilled well.If,in the course of drilling the well,it becomes evident to BHI that the certified plan is in B.BHI SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD CUSTOMER INDEMNITEES HARMLESS FROM AND error,PHI shall notify Customer of the error,and Customer shell be responsible to regulate all directional drilling AGAINST ANY AND ALL CLAIMS ARISING OUT OF OR RELATED TO(I)PERSONAL OR BODILY INJURY,ILLNESS, factors so that Customer's well bottom hole location will be situated on Customer's property,license,or leasehold SICKNESS,DISEASE OR DEATH OF ANY MEMBER OF BHI INDEMNITEES,AND(0)LOSS,DAMAGE OR at total depth of the well being drilled.CUSTOMER SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD PHI DESTRUCTION OF REAL OR PERSONAL PROPERTY,WHETHER OWNED,LEASED,OR CHARTERED,OF ANY INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS ARISING OUT OF,OR RELATED TO, MEMBER OF PHI INDEMNITEES. SUBSURFACE TRESPASS ARISING OUT OF DIRECTIONAL DRILLING OPERATIONS OR OTHER OPERATIONS PERFORMED BY PHI INDEMNITEES OR CUSTOMER INDEMNITEES. C.CUSTOMER SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS ARISING OUT OF OR RELATED TO(I)PERSONAL OR BODILY INJURY,ILLNESS, 7.CUSTOMER WARRANTY/BINDING AUTHORITY SICKNESS,DISEASE OR DEATH OF ANY MEMBER OF CUSTOMER INDEMNITEES,AND(II)LOSS,DAMAGE OR If Customer is not the sole owner of the mineral interests,the well or the field,Customer's request for Services, DESTRUCTION OF REAL OR PERSONAL PROPERTY,WHETHER OWNED,LEASED,OR CHARTERED,OF ANY Equipment or Products shall constitute Customer's warranty that Customer is the duly constituted agent of each MEMBER OF CUSTOMER INDEMNITEES. and every owner and has full authority to represent the interests of the same with respect to all decisions taken throughout the provision of any Services,Equipment or Products hereunder.CUSTOMER SHALL RELEASE, D.SHOULD TOOLS BECOME LOST OR DAMAGED IN THE WELL OR HOLE WHEN PERFORMING OR DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ALL CLAIMS ATTEMPTING TO PERFORM THE SERVICES HEREUNDER,IT IS UNDERSTOOD THAT CUSTOMER SHALL MAKE RESULTING FROM THE ALLEGATION BY ANY PERSON OR ENTITY THAT CUSTOMER HAS EVERY EFFORT TO RECOVER THE LOST OR DAMAGED TOOLS AT ITS SOLE COST.CUSTOMER SHALL MISREPRESENTED OR LACKED SUFFICIENT AUTHORITY TO REPRESENT SUCH PERSON OR ENTITY ASSUME THE ENTIRE RESPONSIBILITY FOR FISHING OPERATIONS IN THE RECOVERY OR ATTEMPTED AS WARRANTED BY CUSTOMER IN THIS ARTICLE. RECOVERY OF ANY SUCH LOST OR DAMAGED TOOLS.NONE OF PHI'S EMPLOYEES ARE AUTHORIZED TO DO ANYTHING WHATSOEVER,NOR SHALL ANY OF BIAS EMPLOYEES BE REQUIRED BY CUSTOMER TO DO 8.ACCESS TO WELL AND WELL SITE STORAGE ANYTHING,OTHER THAN CONSULT IN AN ADVISORY CAPACITY WITH CUSTOMER IN CONNECTION WITH With respect to onshore and offshore operations,Customer shall provide at its expense adequate means of SUCH FISHING OPERATIONS. transportation required for Tools,Products and BHI personnel to gain access to or return from a well site,and Rev.1 January Report Printed on: SEP-27-13 03:55 Gr4175 • • shall obtain at Customer's expense all permits,licenses or other authorization required for BHI to enter upon work PRODUCTION FORECASTS AND RESERVE ESTIMATES,FURNISHED BY PHI TO CUSTOMER areas for the purposes contemplated.When necessary to repair roads or bridges,or to provide transportation to HEREUNDER),AND CUSTOMER HEREBY AGREES TO RELEASE,DEFEND,INDEMNIFY AND HOLD PHI move Tools,Products or PHI personnel,such shall be arranged end paid for by Customer. INDEMNITEES HARMLESS FROM ANY CLAIMS ARISING OUT OF THE USE OF SUCH INTERPRETATIONS AND/OR RECOMMENDATIONS. Customer shall provide proper storage space at the well site,meeting all applicable safety and security requirements and consistent with good industry practices,for the Tools and Products,including,without limitation,all explosive and BHI will endeavor to transmit date to Customer as accurately and securely as practicable in accordance with radioactive materials. current industry practice.Notwithstanding the foregoing,BHI does not warrant the accuracy of data transmitted by electronic processes and will not be responsible to Customer for accidental or intentional interception of such data 9.RADIOACTIVE SOURCES by others. Radioactive sources which may be used in BHI's'Services are potentially dangerous.Customer agrees to comply with all applicable governmental regulations governing the use and handling of radioactive sources.In the event a PHI does not represent or warrant that the Products are or will be compliant with the requirements of REACH(the radioactive source becomes stuck in a well,Customer,at Customers sole risk and expense will make a reasonable Registration Evaluation Authorisation and Restriction of Chemicals Regulation 1907/2006,as amended)and all attempt to recover such radioactive source in accordance with 10 C.F.R§39.15(a)(1)-(4)or other applicable implied warranties as to compliance with REACH("REACH Compliance")are hereby excluded to the fullest extent regulations end use special precautions to prevent damaging the source during recovery operations.If the source permitted by law.Without prejudice to the foregoing,PHI shall use reasonable endeavors to obtain or maintain cannot be recovered,Customer,at Customers sole risk and expense,will Isolate the radioactive material by REACH Compliance in respect of the Products where required by law,unless it is Customer's responsibility to cementing it in place or by other means consistent with 10 C.F.R§39.15 or other applicable statutes or regulations. obtain or maintain REACH Compliance or any non-compliance Is caused by any act or omission of Customer.In the event BHI receives written notice from any competent authority,or in its reasonable opinion decides,that any 10.WARRANTY of the Products are not or will not become REACH Compliant,it shall inform Customer In writing within a A.§erviceg; BHI warrants that the Services shall conform to the material aspects of the specifications agreed to in reasonable time and may suspend any further deliveries of the relevant Products and/or terminate the Order. writing by BHI end Customer.In the event that the Services fail to conform to such specifications,BHI shall re- Customer shall promptly provide such Information to PHI as may be required in order to obtain and maintain perform that part of the non-conforming Services,provided BHI Is notified thereof In writing by Customer prior to REACH Compliance in respect of the Products and shall comply with its obligations under REACH. BHI's departure from the work site. THIS ARTICLE 10 SETS FORTH CUSTOMER'S SOLE REMEDIES AND PHI'S ONLY OBLIGATION WITH B.Equipment;PHI warrants that the Equipment will be of the types specified by and agreed to in writing by PHI and REGARD TO DEFECTIVE OR NON-CONFORMING SERVICES,EQUIPMENT OR PRODUCTS.EXCEPT AS IS Customer,and will be in good operating condition.Liability for loss or damage to Equipment is set forth in Article 5. OTHERWISE EXPRESSLY PROVIDED PURSUANT TO THE PROVISIONS OF THIS ARTICLE 10,BHI MAKES NO WARRANTY OR GUARANTEE OF ANY KIND,EXPRESS OR IMPLIED,INCLUDING NO IMPLIED C.products' (Excluding drill bits,electric submersible pumps and associated cable and surface equipment,specialty WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,REGARDING ANY chemical Products and specialty Products):PHI warrants that the Products shall conform to BHI's published SERVICES PERFORMED OR EQUIPMENT OR PRODUCTS SUPPLIED BY PHI HEREUNDER.IN NO EVENT specifications or the specifications agreed to in writing by PHI and Customer.If any of the Products fail to conform to SHALL PHI BE LIABLE FOR RIG TIME INCURRED BY CUSTOMER INDEMNITEES AS A RESULT OF such specifications upon inspection by BHI,BHI,at its option,shall repair or replace the non-conforming Products DEFECTIVE OR NON-CONFORMING SERVICES,EQUIPMENT OR PRODUCTS. with the type originally furnished or issue credit to the Customer,provided PHI is notified thereof In writing within thirty(30)days after delivery of the particular Products. 11.LOST EQUIPMENT INDEMNITY BUY-BACK In some locations,lost equipment indemnity buy-back("LEIB")is available for some Tools.LEIB must be D.Drill Bits'BHI warrents that the drill bits to be provided by BHI pursuant to this Agreement shall conform to BHI's purchased by Customer prior to the Tools leaving BHI's point of origin.Regardless of LEIB,Customer shell make published specifications.If any of the drill bits fail to conform to such specifications upon inspection by BHI,BHI,at every reasonable effort to recover BHI's Tools lost or damaged Ina well or hole in accordance with Paragraph 5D. its option,shall repair or replace the non-conforming drill bits with the type originally furnished or issue credit to the BHI reserves the right not to offer LEIB at its sale discretion. Customer,provided BHI is notified thereof in writing within ninety(90)days from the date of shipment. 12.JNSURANCF E.Electric Submersible Pumps and Associated Cable and Surface Equipment:PHI warrants that the electrical Upon written request,each party shall furnish to the other party certificates of insurance evidencing that adequate submersible pumps and associated cable and surface equipment to be provided by PHI pursuant to this Agreement Insurance to suppod each party's obligations hereunder has been secured.To the extent of each party's release shall conform to BHI's published specifications.If any of the electric submersible pumps or associated cable or and indemnity obligations hereunder,each party agrees that all such insurance policies shall(i)be primary to the surface equipment fail to conform with such specifications upon inspection by BHI,BHI,at its option,shall repair or other party's insurance,(ii)include the other party,its parent,subsidiary and affiliated or related companies,its replace the non-conforming electric submersible pumps or associated cable or surface equipment with the type subcontractors and other contractors,end its and their respective officers,directors,employees,consultants and originally furnished,provided PHI is notified thereof In writing within the earlier of twelve(12)months from the date of agents as additional insured,end(iii)be endorsed to waive subrogation against the other party,its parent, installation or eighteen(18)months from the date of shipment.Warranty claims by Customer must be submitted to subsidiary and affiliated or related companies,its subcontractors and other contractors,and its and their respective BHI within sixty(60)days of the failure date of the electric submersible pumps or associated cable or surface officers,directors,employees,consultants and agents. equipment. 13.CHANGE OF DESIGN F.Specialty Chemical Products' BHI warrants that the specialty chemical Products to be provided by PHI pursuant BHI expressly reserves the right to change or modify the design and construction of any of its Products without to this Agreement shall,upon departure from BHI's point of origin,conform to the published physical and chemical obligation to furnish or install such changes or modifications on Products previously or subsequently sold. specifications established by PHI for each such Product.If any of the specialty chemical Products fail to conform to such specifications,BHI,at its option,shall replace the non-conforming specialty chemical Products with the type 14.PATENTS originally furnished or issue credit to the Customer,provided PHI is notified thereof in writing within thirty(30)days PHI warrents that the use or sale of Equipment or Products hereunder will not Infringe valid patents of others by after the specialty chemical Products depart BHI's point of origin. reason of the use or sale of such Equipment or Products per se,and hereby agrees to hold CUSTOMER harmless against judgment for damages for infringement of any such patent,provided that Customer shall promptly notify G.Specialty Products:In the event PHI is to provide Products to Customer based upon Customers specific request BHI In writing upon receipt of any claim for infringement,or upon the filing of any such suit for infringement, that PHI develop,manufacture,test or put to use Products that are intended to satisfy a unique need identified by whichever first occurs,and shall afford PHI full opportunity,at BHI's option end expense,to answer such claim or Customer and are not"standard"Products of BHI,Customer hereby recognizes and agrees that the specialty threat of suit,assume the control of the defense of such suit,end settle or compromise same in any way BHI sees Products being provided do not necessarily have or contain the same or similar characteristics as BHI's"standard" fit.PHI does not warrant that such Equipment or Products:(i)will not infringe any such patent when not of PHI's Products,including,but not limited to,a historical performance against which future performance can be measured. manufacture,or specially made,in whole or in part,to the Customer's design specifications;or(ii)if used or sold in In developing,manufacturing,testing and putting to use any specialty Products,BHI will be relying upon information combination with other materials or apparatus or used in the practice of processes,will not,as a result of such and specifications provided by Customer relating to the unique needs of Customer.As such,BHI shall have no combination or use,infringe any such patent,and BHI shall not be liable and does not hold Customer harmless for responsibility for the design,manufacture or engineering of any such specialty Products,even though PHI may have damages or bsses of any nature whatsoever resulting from actual or alleged patent infringement arising pursuant participated in the development and manufacture of the specialty Products,or for any Customerdumished materials, to(I)and(I)above.THIS PARAGRAPH STATES THE ENTIRE RESPONSIBILITY OF PHI CONCERNING information and specifications.If,upon inspection by BHI,any of the specialty Products fail to meet the PATENT INFRINGEMENT specifications agreed to in writing by Customer and PHI,then PHI shall,at its option,repair or replace the non- conforming specialty Products with(i)the type originally furnished to Customer,or(i i)substituted Products having 15.CONFIDENTIALITY BHI's"standard"specifications and qualifications. Each party shall maintain all data and information obtained from the other party in strict confidence,subject only to disclosure required by law or legal process.In the event that PHI owns copyrights to,patents to,or has filed patent H.Discharoe Services: Except to the extent that PHI has agreed to provide its discharge compliance engineering applications on,any technology related to the Services,Products or Equipment furnished by PHI hereunder,and if services("Discharge Services")to Customer pursuant to this Agreement,PHI shall have no responsibility for PHI makes any improvements on such technology,then such improvements shall not fall within the confidentiality achievement of and compliance with any specific oil retention or similar requirements mandated by any applicable obligations of PHI included herein,and PHI shall own all such improvements,including drawings,specifications, local,state or federal law or regulation.If Discharge Services are rendered by BHI and agreed oil retention or similar calculations and other documents. requirements are not met,then PHI shall,at its option,re-perforin the Discharge Services,or provide a credit to Customer to cover any documented additional disposal costs Incurred by Customer as a result of the nonconforming The design,construction,application and operation of BHI's Services,Equipment and Products embody proprietary Discharge Services,provided that such credit shall be limited to 3%of the amount charged for the nonconforming end confidential information.Customer shall maintain this information in strict confidence and shall not disclose it Discharge Services. to others,subject only to disclosure required by law or legal process.To the extent permissible by law,Customer shall not resell the Products or Equipment(or drawings related thereto)to others or reverse engineer or permit BHI's warranty obligations hereunder are non-transferrable and shall not apply if the non-conformity was caused by others to reverse engineer,for the purpose of manufacturing,similar Products or Equipment. (i)Customer's failure to property store or maintain the Products or Equipment,(II)abnormal well conditions,abrasive materials,corrosion due to aggressive fluids or Incorrect specifications provided by Customer,(0)unauthorized 16.LIENS.ATTACHMENTS AND ENCUMBRANCES alteration or repair of the Products or Equipment,(iv)the Products or Equipment are lost or damaged while on Customer grants to BHI a lien upon end a security interest in()any interest that Customer now owns or hereafter Customers site due to Customer's or any third party's negligence,vandalism or force majeure(including,but not acquires in the lands,leasehold interests,pipelines,pipeline right-of-ways,personal property and fixtures arising limited to,lightning),or(v)use or handling of the Products or Equipment by Customer in a manner inconsistent with out of,pertaining to,located on,or used in connection with the development of,the mineral property on which the BHI's recommendations.Further,BHI's warranty obligations shall terminate if Customer fails to perform its Services,Products,or Equipment were performed or installed(the"Mineral Property"),(ii)the oil end gas when obligations under this or any other Agreement between the parties. extracted from the Mineral Property,including the proceeds thereof,(iii)the contract rights,inventory and general intangibles pertaining to the Mineral Property,and(iv)any claim against any working interest owner of the Mineral All non-conforming Products shall be delivered to the service facility designated by BHI.All transportation charges Property arising from nonpayment of joint interest billings or lease operating expenses.This lien and security and removal end reinstallation charges related to the repair or replacement of non-conforming Products shall be interest shaft be for the purpose of securing performance of Customers obligations to PHI under this Agreement. borne by Customer.Any parts for which PHI provides replacement under this warranty shall become the property of Customer authorizes PHI to have filed a financing statement and any other instruments PHI determines to BHI.With regard to materials or equipment furnished by third party vendors and/or suppliers,BHI's liability therefor be necessary or appropriate to perfect the lien end security interest created hereby.Upon request,Customer shall shall be limited to the assignment of such third party vendors or suppliers warranty to Customer,to the extent such execute any document determined by PHI to be necessary or appropriate to perfect this lien and security interest warranties are assignable.The warranty period for any repaired or replaced Products shall be only for the remainder under all applicable laws and the real property recording statutes of the state in which the Mineral Property is of the original warranty period. located.If PHI is unable to obtain proper execution of such documentation within a reasonable period of time after the request is made,then Customer hereby appoints PHI as Customers true and lawful agent end attorney-in-fact, Interpretations,research,analysis,recommendations,advice or interpretational data(specifically including,without to execute all documents on its behalf,and to otherwise take such actions on its behalf,as PHI deems necessary limitation,any preliminary cuttings reinjection program and any engineering designs,geological studies or analyses, or appropriate,to perfect the lien and security interest created or contemplated hereby.This appointment is well programs,reservoir models,or drilling production optimization or management programs)("Interpretations coupled with an interest and may not be revoked for as long as any portion of Customers obligations hereunder end/or Recommendations")furnished by PHI hereunder are opinions based upon inferences from measurements, remains outstanding. The lien and security interest created hereby are in addition to,and not in lieu of,any other empirical relationships and assumptions,and industry practice,which inferences,assumptions end practices are not liens end security interests now existing or hereafter coming into existence,and securing the performance of infallible,end with respect to which professional geologists,engineers,drilling consultants,and analysts may differ. Customers obligations hereunder,whether voluntary or Involuntary,Including any liens arising by statute or Accordingly,PHI does not warrant the accuracy,correctness,or completeness of any such Interpretations and/or common law in favor of mechanics and/or materialmen. Recommendations,or that Customers reliance or any third partys reliance on such Interpretations and/or Recommendations will accomplish any particular results.CUSTOMER ASSUMES FULL RESPONSIBILITY FOR Should Customer commit a breach of any of the terms and conditions of this Agreement,be named as a debtor in THE USE OF SUCH INTERPRETATIONS AND/OR RECOMMENDATIONS AND FOR ALL DECISIONS BASED a bankruptcy proceeding,or become insolvent;should Customer,or any of its assets,be the subject of a THEREON(INCLUDING,WITHOUT LIMITATION,DECISIONS BASED ON ANY OIL AND GAS EVALUATIONS, receivership proceeding;or should any creditor or other person or entity attach or levy Customer's property or Rev.1 January 2012 Report Printed on.. SEP-27-13 03:55 Gr4175 • • equipment,BHI shall immediately have the right,without notice end without liability for trespass or damages,to BY FINAL AND BINDING ARBITRATION CONDUCTED IN ACCORDANCE WITH THE UNCITRAL ARBITRATION retake and remove any of its Products or Equipment wherever it may be found.CUSTOMER SHALL RELEASE, RULES(THE"RULES"). DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM ANY AND ALL LIENS AND ENCUMBRANCES AGAINST PRODUCTS OR EQUIPMENT FURNISHED HEREUNDER AND SHALL RETURN The Tribunal shall be composed of three arbitrators,with each party appointing one arbitrator,and the two arbitrators SAME PROMPTLY TO BHI FREE OF ANY LIENS OR ENCUMBRANCES. so appointed appointing the third arbitrator who shell act as the presiding arbitrator of the Tribunal(the"Tribunal").The appointing authority under the Rules shall be the London Court of International Arbitration.The language of the 17.FORCE MAJEURE arbitration shall be English.The seat of arbitration shall be London,England,and the proceedings shall be conducted If either party is unable by reason of Force Majeure to carry out any of its obligations under this Agreement,other and concluded as soon as reasonably practicable,based upon the schedule established by the Tribunal.Any monetary then obligations to pay money,then on such party giving notice and particulars in writing to the other party within a award shall be made in U.S.Dollars,free of any tenor other deduction,and shall include interest front the date of any reasonable time after the occurrence of the cause relied upon,such obligations shall be suspended."Force Majeure" breach or other violation of the Agreement to the date paid In full at a floating rate of interest equal to the prime rate of shall include any event that is beyond the reasonable control of the party so affected including,without limitation, interest in effect at Citibank,N.A.,New York,U.S.A.,from time to time. acts of God,laws end regulations,government action,war,civil disturbances,hijack,piracy,criminal action by a third party,threats or acts of terrorism,strikes and labor problems,delays of vendors or carriers,lightening,fire,flood, B.For Services,Equipment or Products provided,or to be provided,by BHI in the Americas:THIS AGREEMENT washout,storm,breakage or accident to equipment or machinery,and shortage of raw materials.In the event that SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF any suspension due to Force Majeure exceeds ten(10)consecutive days,either party may terminate this Agreement OKLAHOMA,EXCLUDING CONFLICTS OF LAW AND CHOICE OF LAW PRINCIPLES.ANY DISPUTE, by written notice to the other party,and Customer shall be liable for demobilization end any other reasonable costs CONTROVERSY OR CLAIM("DISPUTE")ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR incurred by BHI incidental to such termination. THE FURNISHING OF EQUIPMENT,SERVICES OR PRODUCTS HEREUNDER SHALL BE RESOLVED BY FINAL AND BINDING ARBITRATION CONDUCTED IN ACCORDANCE WITH THE COMMERCIAL RULES OF 18.JNDEPENDENT CONTRACTOR ARBITRATION OF THE AMERICAN ARBITRATION ASSOCIATION(THE"RULES").The tribunal shall be composed Itis expressly understood that BHI is an independent contractor,and that neither BHI nor its principals,partners, of one(1)neutral arbitrator if the Dispute involves a maximum exposure of less then$1,000,000.If the parties are employees or subcontractors are servants,agents or employees of Customer. unable to agree one neutral arbitrator,one will be appointed pursuant to the Rules.If the Dispute involves a maximum exposure equal to or In excess of$1,000,000,then the Tribunal shall consist of three(3)arbitrators,with each party In all cases where BHI's employees(defined to include BHI's and its subcontractors'direct,borrowed,special,or appointing one arbitrator,and the two arbitrators so appointed appointing the third arbitrator who shall act as Chair(the statutory employees)are covered by the Louisiana Workers'Compensation Act,La.R.S.23:102 et seq.,BHI and "Tribunal").The seat of arbitration shell be Houston,Texas,and the proceedings shall be conducted and concluded as Customer agree that all Services,Products and Equipment provided by BHI and BHI's employees pursuant to this soon as reasonably practicable,based upon the schedule established by the Tribunal. Agreement are an integral part of and are essential to the ability of Customer to generate Customer's goods, products,and services for the purpose of La.R.S.23:106(A)(1).Furthermore,BHI and Customer agree that C.For any arbitration conducted in accordance with Paragraph A.or B.above,the following shall apply:No award Customer is the statutory employer of BHI's employees for purposes of La.R.S.23:1081(A)(3). shall be made for Consequential Damages.Judgment upon the award rendered by the Tribunal pursuant hereto may be entered In,and enforced by,any court of competent jurisdiction.All statutes of limitation that would otherwise be 19.JAWS RULES,REGULATIONS AND FXPORT CONTROI applicable shall apply to the arbitration proceeding.Any attorney-client privilege and other protection against BHI and Customer agree to be subject to all laws,rules,regulations and decrees of any governmental or regulatory disclosure of privileged or confidential information,Including,without limitation,any protection afforded the work- body having jurisdiction over the Services,Equipment or Products to be provided by BHI or the work site or that may product of any attorney,that could otherwise be claimed by any party shell be available to,and may be claimed by,any otherwise be applicable to BHI's or Customer's performance under this Agreement. such party in any arbitration proceeding.The parties shall treat all matters relating to the arbitration as confidential. Subject to each party's right to cooperate fully with the United States authorities,the parties understand and agree that Customer acknowledges that Equipment,Services,Products and/or related technical data covered by this this confidentiality obligation extends to information concerning the fact of any request for arbitration,any ongoing Agreement maybe subject to U.S.and/or foreign trade controls.Customer agrees that it will not sell,re-export or arbitration,as well as all matters discussed,discovered,or divulged,(whether voluntarily or by compulsion)during the transfer Equipment,Products end/or related technical data except in full compliance with all governmental course of such arbitration proceeding.It is the desire of the parties that any Dispute is resolved efficiently and fairly requirements including but not limited to economic sanctions and export controls administered by the U.S. and the Tribunal shall act in manner consistent with these intentions Department of Treasury,U.S.Department of Commerce and U.S.Department of State.Customer agrees to comply with ell BHI requests for trade compliance information,statements,and other assurances including,without limitation, 21.ASSIGNMENT requests for End-User and Routed Transaction certifications.Any breach of this provision shall be deemed a BHI shall have the right to assign this Agreement to any of its subsidiaries,affiliated or related companies without the material breach of this Agreement and sufficient basis for BHI to reject any or all orders or to terminate the consent of Customer. Agreement. 22.GPNER.AL BHI reserves the right to refuse to fulfill any order or otherwise perform under this Agreement if BHI in its sole Failure of Customer or BHI to enforce any of the terms end conditions of this Agreement shall not prevent a discretion determines that such action may violate any law or regulation.Customer agrees that such refusal, subsequent enforcement of such terms and conditions or be deemed a waiver of any subsequent breach.Should any cancellation,or termination of the Agreement by BHI will not constitute a breach of BHI's obligations under this provision of this Agreement,ore portion thereof,be unenforceable or in conflict with governing country,state, Agreement and Customer hereby waives any and all claims against BHI related to such refusal,cancellation,or province,or local laws,then the validity of the remaining provisions,end portions thereof,shall not be affected by such termination. unenforceability or conflict,and this Agreement shall be construed as it such provisions,or portion thereof,were not contained herein.This Agreement contains all representations of the parties and supersedes all prior oral or written 20.GOVERNING LAW AND ARBITRATION agreements or representations.Customer acknowledges that It has not relied on any representations other than those A.Except for Services,Equipment or Products provided,or to be provided,by BHI in North or South America(the contained in this Agreement.This Agreement shell not be varied,supplemented,qualified,or interpreted by any prior "Americas"):THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH course of dealing between the parties or by any usage of trade and may only be amended by an agreement executed ENGLISH LAW,EXCLUDING CONFLICTS OF LAW AND CHOICE OF LAW PRINCIPLES.ANY DISPUTE, by both parties.In the event that any conflict exists between the provisions of this Agreement and any other terns and CONTROVERSY OR CLAIM("DISPUTE")ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR conditions set forth in Customers purchase orders,field work orders,work tickets,invoices,statements,or any other THE FURNISHING OF EQUIPMENT,SERVICES OR PRODUCTS HEREUNDER SHALL BE RESOLVED type of memoranda or other documents used by Customer in the normal course of business,whether oral or written, the provisions of this Agreement shall govern. Rev.1 January 2012 Report Printed on, SEP-27-1303:55 Gr4175 411 • �. Operator: BUCCANEER ALASKA OPERATIONS LLC •� Well Name: KENAI LOOP#1-4 BAILER Date: September 23, 2013 HUGHES Proposal No: 1001161515G PRODUCT DESCRIPTIONS ASA-301 Additive used to reduce or eliminate free water and settling in cement slurries. BA-56 A gas migration additive that controls fluid loss, limits free water and provides excellent solids support. It is functional at low to moderate temperatures ranges. Barite-Sacked A naturally occuring mineral (Barium Sulfate). It is widely used as a weighting material in cement spacers and occasionally in cement slurries. It can yield a slurry density in excess of 19 lbs/gal. CD-32 A patented,free-flowing, water soluble polymer that is an efficient and effective dispersant for primary and remedial cementing. Class G Cement Intended for use as a basic cement from surface to 8000 ft as manufactured, or can be used with accelerators and retarders to cover a wide range of well depths and temperatures. EC-1 A proprietary product that provides expansive properties and improves bonding at low to moderate temperatures. FL-63 A non-retarding, non-viscosifying fluid loss additive particularly suited for use with coil tubing and/or close tolerance liner cementing. FL-63 is effective from low to high temperatures. Concentrations of 0.2%to 1.0% BWOC are typical. FP-6L A clear liquid that decreases foaming in slurries during mixing. Potassium Chloride A granular salt used to reduce clay swelling caused by water-base cementing fluids. R-3 A low temperature retarder used in a wide range of slurry formulations to extend the slurry thickening time. SealBond Spacer SealBondTM spacer systems combines the unique quality of a cement spacer system with the added advantage of curing lost circulation and wellbore strengthening properties. The viscosity as well as lost circulation and strengthening properties can be adjusted using the SealBond 25, 50 and 100. In severe lost circulation cases Sodium Metasilicate An accelerator used to decrease the thickening time of cement slurries. Report Printed on:September 27,2013 3'.55 PM Page 15 Have more questions?You can find us at: http://www.bakerh ug hes.com/products-and-services/pressure-pumping • • Operator: BUCCANEER ALASKA OPERATIONS LLC �A•■ Well Name: KENAI LOOP#1-4 BAKER Date: September 23, 2013 HUGHES Proposal No: 1001161515G PRODUCT DESCRIPTIONS (Continued) Static Free An anti-static additive used to prevent air entrainment due to agglomerated particles. Can be used in Cementing and Fracturing operations to aid in the flow of dry materials. Type I Cement A Portland cement designed for use to 6,000 Ft. Type I cement can be modified for use at greater depths. Type Re Pon Printed on.September 27,2013 3'.55 PM Page 16 Have more questions?You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping i r Operator Name: BUCCANEER ALASKA OPERATIONS LLC V�•• Well Name: KENAI LOOP#1-4 BAKER Date: September 23, 2013 HUGHES Proposal No: 1001161515G End of Report Report Printed on:September 27.201 Grlest L • • RECEIVED Buccaneer Alaska JUN 16 2014 KL 1-4 Daily Well Summary Reports AOGCC 8/1/13 Current Depth @ report time- Yesterdays Depth @ report time- Footage in Last 24 hours- Current ROP— Current Bit size- Mud Type— Mud Weight- PV— YP— Water Loss— Filter cake- Last Casing— Continue rigging up. PTSM; Finish staging mud products for spud; reset welding shop;finish water line to camp generator; berm Hansen tank; prep bolts for stack. Hook up power to man camp. Troubleshoot top drive; install flow sensor in flowline. Set diverter stack and start nipple up. Got city water to man camp;grease dive lines; start mixing spud mud; plumb caustic BBI; run hoses for centrifuge and Hansen tank. 00:00—06:00 Mix spud mud; MU diverter line/knife valve;work on loader brakes; start rig. 8/2/13 Current Depth @ report time- Yesterdays Depth @ report time- Footage in Last 24 hours- Current ROP— Current Bit size- Mud Type— Mud Weight- PV— YP— Water Loss— Filter cake- Last Casing— Continue Rigging up. PTSM-Mix spud mud; MU diverter line/knife valve; work on loader brakes; start Rig Inspection check list with Driller. Finish knife valve and diverter line. Kick-Off Safety meeting with both drill crews and vendor personnel. PTSM-Hook up hydraulic lines for diverter;fuel camp, loader, portable fuel pump. MWD trailer and tool boxes. PJSM- Raise derrick, prep rig floor and derrick to pick up torque tube s • 8/3/13 Current Depth @ report time- Yesterdays Depth @ report time - Footage in Last 24 hours- Current ROP— Current Bit size- Mud Type— Mud Weight- PV— YP— Water Loss— Filter cake- Last Casing— Continue rigging up, Finish picking up torque tube; hang top drive; install rail bushing&service loop. Troubleshoot top drive/drawworks;test gas alarms; hang hydraulic cylinder covers; bolt last section of diverter line; RU hydraulic lines to diverter/knife valve. RU top drive; unload csg to pipe racks. RU rig floor;Test MPs 1 &2; test diverter. Fuel camp&auxiliary generator, day tank. RU aux.generator; RU trip tank hose. 00:00—06:00 PU & hang rig tongs and pipe spinner; set mouse hole and dead men. Continue with rigging up lines/valves in pits and cellar.Troubleshoot elevator functions. RU hosesfor trip tank return. 8/4/13 Current Depth @ report time- Yesterdays Depth @ report time- Footage in Last 24 hours- Current ROP— Current Bit size- Mud Type— Mud Weight- PV— VP— Water Loss— Filter cake- Last Casing— Continue Rigging up. PTSM-PU & hang rig tongs and pipe spinner; set mouse hole and dead men. Continue rigging up lines/valves in pits and cellar. RU hoses for trip tank return and hydraulics for pump. Hang hydraulic sleeve covers in cellar. Diverter Test w/AOGCC rep Jeff Jones---Start at 2950 psi, bled down to 1425, 200 psi build up 40 sec,full recharge in 190 seconds;4 N2 Bottles at 2300 psi.Work on top drive quill; get lined up to change pump liners to 5 1/2"on two pumps. Repair Generator 00:00—06:00 • ! Continue to c/o pump liners; re-install grabber assembly; spot short pipe rack for MWD tools;trouble shoot#2 generator---lock out auxiliary gen.Troubleshoot pipe spinners; PLC down; unable to move blocks; trying to reboot PLC system 8/5/13 Current Depth @ report time - Yesterdays Depth @ report time- Footage in Last 24 hours- Current ROP— Current Bit size- Mud Type— Mud Weight- PV— YP— Water Loss— Filter cake- Last Casing— Continue Rigging up. PTSM-Continue to c/o pump liners; re-install grabber assembly; spot short pipe rack. MWD tools;trouble shoot#2 generator---lock out auxiliary gen.Troubleshoot pipe spinners; PLC down; unable to move blocks;trying to reboot PLC system. PJSM-work on pipe spinners and#2 mud pump. PU 50 jts of 5" DP. Trouble shoot top drive. 00:00—06:00 Top Drive down-Attempt to reboot system; no good.Work on moving casing to rig pipe racks; strap same.Stage smart tools to off-driller side pipe rack. 8/6/13 Current Depth @ report time—190' Yesterdays Depth @ report time - 0 Footage in Last 24 hours- 190 Current ROP— Current Bit size—13.5" Mud Type—MI Spud Mud Weight-8.7 PV—17 YP-14 Water Loss— Filter cake-2 Last Casing— Top Drive down-Attempt to reboot system; no good.Work on moving casing to rig pipe racks; strap same. Stage smart tools to off-driller side pipe rack. Strap and number jts of 10 3/4" csg; working on top drive; MU bit, bit sub,XO on HW. Work on IBOP;Test circulating system; repair flowline leak in cellar. Wash down through conductor; drill to 190'; hydraulic hose leak. Repair/replace hydraulic hose on top drive. 00:00—06:00 • • Replacing hydraulic hose on top drive; circ hole at 50 spm w/working on hose. Reclaim mud in cuttings box f/overflowing shakers; clean hydrlc fluid that was leaked. Replace service loop cover; 04:30---drill ahead to 200'; stop to repair hydr leak. 8/7/13 Current Depth @ report time—309' Yesterdays Depth @ report time- 190' Footage in Last 24 hours—119' Current ROP—54 Current Bit size—13.5" Mud Type—MI Spud Mud Weight-8.7 PV—17 YP—14 Water Loss— Filter cake -2 Last Casing— Replace hydraulic hose on top drive. 04:30---drill ahead to 200'; stop to repair hydraulic leak. Drill f/ 200' -t/309' Circ hole clean, POOH & L/D BHA, Service Rig, Install hydraulic elevators. P/U BHA- Bit, motor, Short NM Flex, Stab. M/U bit; upload tools Test mud pump#3; calibrate LWD-block height. RIH to 305' 00:00—06:00 Test MWD, start drlg when generator shut down. Work to get generators running; reboot all systems; Reboot BHI tools due to power failure. 8/8/13 Current Depth @ report time—1865' Yesterdays Depth @ report time- 309' Footage in Last 24 hours—1556' Current ROP—61.9 Current Bit size—13.5" Mud Type—MI Spud Mud Weight-8.9 PV—18 YP-12 Water Loss— Filter cake -2 Last Casing— PTSM-Test MWD, start drlg when generator shut down. Work to get generators running; reboot all systems. Reboot BHI tools due to power failure; AIMM vac truck on location at 07:00. Drlg f/309' - 1424'; one vac truck maintaining cuttings box. 00:00—06:00 PTSM-Drilling/sliding f/1424'to 1865' i +� 8/9/13 Current Depth @ report time—3035' Yesterdays Depth @ report time- 1865' Footage in Last 24 hours—1170' Current ROP—89.5 Current Bit size—13.5" Mud Type—MI Spud Mud Weight-8.9 PV—20 YP-9 Water Loss— Filter cake-2 Last Casing— PTSM-Drilling/Sliding f/1424' -t/3003', Circ. Hole clean. 00:00—06:00 Drl f/3003'to 3035'; Circ HV sweep; circulate hole clean; Survey; POH 5 stands. Pump dry job, POH. 8/10/13 Current Depth @ report time—3065' Yesterdays Depth @ report time- 1865' Footage in Last 24 hours—1170' Current ROP—89.5 Current Bit size—13.5" Mud Type—MI Spud Mud Weight-8.9 PV—15 YP-6 Water Loss— Filter cake-2 Last Casing— PTSM, Drlg f/ 3003' - t/ 3035' TD. Circ Hi-Vis Sweep. POOH 5 stds, Pump dry job, POOH. Down load LWD tool data; LD BHA; Morning crew worked until safety meeting ended. Clear floor/clear catwalk of BHI tools. RIH w/ bit, bit sub, and XO on HWDP to 2973'. Drill pipe talley error resulted in drilling 30' of new hole to 3065'. Circulate hole clean; pump HV sweep w/nut plug; indicated minimum washout. Circulate hole clean and pump dry job. Strap out of hole; LD bit; remove float from bit sub 00:00—06:00 PTSM, LD bit sub, XO. Service rig, topdrive. R/U to run 10 3/4" casing, PJSM 8/11/13 Current Depth @ report time—3065' • S Yesterdays Depth @ report time-3065' Footage in Last 24 hours—' Current ROP—89.5 Current Bit size—13.5" Mud Type—MI Spud Mud Weight-9.3 PV—15 YP-6 Water Loss— Filter cake- 2 Last Casing—10 3/4" @3057' RU to run 10 3/4" casing. Hold PJSM to run casing; RIH with 10 3/4" casing to 3057'. RD Weatherford; RU to circulate casing in OH. Circulate hole while reciprocating casing 20'; 140 spm 550 PP 120 ann velocity. Circulate bottoms up X2; Stage pumps up gradually after breaking circulation. Up wt= 145K, Down Wt 120K. LD long bales; RU short bales; RU false rot table; MU stab-in tool on 14' DP pup. RIH w/DP to 204' at midnight 00:00—06:00 PTSM---RIH w/DP from 204'to 2971'; RU circulating head for circ/cement. Circulate hole w/rigging up to cement. Hold PJSM- 8/12/13 Current Depth @ report time—3065' Yesterdays Depth @ report time-3065' Footage in Last 24 hours—' Current ROP—89.5 Current Bit size—13.5" Mud Type—MI Spud Mud Weight-9.0 PV—15 YP-6 Water Loss— Filter cake- 2 Last Casing—10 3/4" @3057' PTSM---RIH w/DP from 204'to 2970'. Stab in to Float collar @ 2970' and circ. PJSM,Test lines t/2500 psi, Pump 24 bbls Seal Bond Spacer, Mix& pump 304 bbls 13.5 ppg.,..ement, displace w/50 bbls mud, check floats-OK, CIP 0858 hrs. CMT Blend - 100%Type 1+ .05%S.F. + 1%SMS+.8%CD-32+ .1%ASA- 301-BWOC. Sting out, drop wiper plug&circ. DP clean,flush diverter stack. POOH w/ DP. RD Diverter; haul mud; clean pits; clean up around rig. 00:00—06:00 PTSM-Make rough cut on casing; Set out diverter. 8/13/13 Current Depth @ report time—3065' Yesterdays Depth @ report time-3065' Footage in Last 24 hours—' Current ROP—89.5 Current Bit size—13.5" • • Mud Type—MI Spud Mud Weight-9.0 PV—15 YP-6 Water Loss— Filter cake -2 Last Casing—10 3/4" @3057' PTSM-Make rough cut on casing; Set out diverter; Remove 16" starter head. Make final cuts on 16" & 10-3/4" casing. Set on wellhead, weld same. Cool slowly,Test void t/ 1500 psi for 10 minutes. Set in adaptor spool; set drlg spool. PJSM-Spot BOP stack at cellar; Set stack on Drlg spool. 00:00—06:00 PTSM-Continue to N/U BOP stack. Hook up Koomey lines. 8/14/13 Current Depth @ report time—3065' Yesterdays Depth @ report time -3065' Footage in Last 24 hours—' Current ROP— Current Bit size—13.5" Mud Type—MI Spud Mud Weight-9.0 PV—15 YP-6 Water Loss— Filter cake -2 Last Casing—10 3/4" @3057' Continue BOP testing PTSM-Continue N/U BOP stack. Hook up Koomey lines. Install VBRs in upper rams 5" in lower rams. PTSM - N/U Kill &Choke lines, install flow line extension & drilling nipple, R/U test pump and chart recorder. Test annular to 250/2500 psi,VBRs Dart, upper kill,# 10, 11 & 12 choke manifold valves to 250/5000 psi. 00:00—06:00 Cont. testing BOPs, R/D test equipment. 8/15/13 Current Depth @ report time—3065' Yesterdays Depth @ report time-3065' Footage in Last 24 hours—' Current ROP— Current Bit size—13.5" Mud Type—MI Spud Mud Weight-9.0 PV—15 YP-6 Water Loss— Filter cake-2 Last Casing—10 3/4" @3057' • • PTSM, Cont.testing BOPS, R/D test equipment Set wear ring. PJSM, R/U Schlumberger, Run CBL, stopped at 315', Rig Down. PTSM, M/U Bit& HWDP, RIH -Strap, rabbit& P/U drillpipe- Break circ @ 1000' & 2000',Tag cement @ 2969'Circ&cond mud. 00:00—06:00 Circ&cond mud, POOH . 8/16/13 Current Depth @ report time—3065' Yesterdays Depth @ report time-3065' Footage in Last 24 hours—' Current ROP— Current Bit size—13.5" Mud Type—MI Spud Mud Weight-9.0 PV—15 YP-6 Water Loss— Filter cake -2 Last Casing—10 3/4" @3057' Circ&cond mud. POOH. R/U Schlumberger& run CBL f/2970' -t/340'. Strap, rabbit and P/U DP, Rack in derrick. 00:00—06:00 Strap, rabbit and p/u dp, rack in derrick(total 140 stds in derrick) 8/17/13 Current Depth @ report time—3065' Yesterdays Depth @ report time-3065' Footage in Last 24 hours—' Current ROP— Current Bit size—13.5" Mud Type—MI Spud Mud Weight-9.0 PV—15 YP-6 Water Loss— Filter cake-2 Last Casing—10 3/4" @3057' PTSM, Strap, rabbit and P/U DP, Rack in derrick, rabbit and P/U DP, Rack in derrick(Total 140 stds in derrick). Service rig. 00:00—06:00 PTSM, remove#2 generator skid,work on rig condition audit,finish installing#3 MP transmission,fix rig condition audit deficiencies,organize and clean rig. 8/18/13 Current Depth @ report time—3065' Yesterdays Depth @ report time-3065' Footage in Last 24 hours—' Current ROP— i • Current Bit size—13.5" Mud Type—MI Spud Mud Weight-9.0 PV—15 YP-6 Water Loss— Filter cake-2 Last Casing—10 3/4" @3057' PTSM, remove#2 generator skid,work on rig condition audit,finish installing#3 MP transmission, correcting rig condition audit deficiencies,organize and clean rig. PTSM, wire in generator,finish rig condition audit, correcting rig audit deficiencies,organize and clean rig. Test BOPs. 00:00—06:00 PTSM-Finish BOP test. Circ thru choke and kill lines;test as per state representative. RD Test equipment, test jt.,test blind rams. Pull test plug; install wear bushing. PJSM-PU new BHA as per BHI reps. 8/19/13 Current Depth @ report time—3161' Yesterdays Depth @ report time-3065' Footage in Last 24 hours—96' Current ROP—96 Current Bit size—9 7/8" Mud Type—MI Spud Mud Weight-9.0 PV—15 YP-6 Water Loss— Filter cake -2 Last Casing—10 3/4" @3057' PTSM-Finish BOP test. Circ thru choke and kill lines; test as per state representative. Annular t/ 250/2500 psi, 250/5000 all other equipment, Witness Jeff Jones AOGCC. RD Test equipment,test jt.,test blind rams. Pull test plug; install wear bushing. PJSM-PU new BHA as per BHI reps. PTSM - P/U new BHA per BHI,test run tools. RIH, break circ @ 1500', RIH t/2956'. Wash down to 2956'; Circulate and condition mud for casing test.Test casing---3000 psi/30 min. 3.5 bbl bleed back to pit#4 after test. Drill out from 2956 to the FC at 2973',cement to 3035'. 00:00—06:00 PTSM-Drill cmt and Drlg new hole f/3065-t/3085'; Circulate the hole clean. Pull to 3037' & Perform FIT to 14.5 EMW. PJSM - Displace hole w/8.8 ppg Kla-shield mud. Drill to 3161'at 06:00. 8/20/13 Current Depth @ report time—4611' Yesterdays Depth @ report time-3161' Footage in Last 24 hours—1450' Current ROP—76.3 Current Bit size—9 7/8" Mud Type—MI Spud Mud Weight-8.9 PV—13 YP-11 • Water Loss— Filter cake - 1 Last Casing—10 3/4" @3057' PTSM-Drill cmt f/3035' -t/3065, DrIg new hole f/3065 -t/3085'. Circ. &cond. Mud. Perform Formation Integrity Test w/8.9 ppg mud t/ 14.5 EMW. Displace well w/8.8 ppg Kla-shield mud. DrIg f/ 3085' -t/3604' Held H2S Drill@ 0700 hrs. PTSM - DrIg f/3604't/4450'. BOP drill at 23:00 hrs while drilling 4384' MD. 50 seconds total response time. RPM 60; WOB 5-10;Torq 6-8K; PP 1450 @ 230 SPM. Up WT 127k; Dn WT 122k; Rot WT 125k. 00:00—06:00 Drl f/4450'to 4611' at 02:30; CBU X 2; Short trip to shoe w/o any problems/overpulls. 8/21/13 Current Depth @ report time—5720' Yesterdays Depth @ report time -4611' Footage in Last 24 hours—1109' Current ROP—56.4 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.1 PV—13 YP—15 Water Loss— Filter cake - 1 Last Casing—10 3/4" @3057' PTSM - Drlg f/4450' -t/4611'. Circ hole clean, POOH to shoe. Held spill drill. RIH t/4548', Wash t/ 4611', No tight spots,4' of fill. Drlg f/4611' -t/5380'. 00:00—06:00 Drlg f/5380't/5720'. 8/22/13 Current Depth @ report time—6500' Yesterdays Depth @ report time-5720' Footage in Last 24 hours—780' Current ROP—43.3 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.1 PV—14 YP—20 Water Loss—6 Filter cake - 1 Last Casing—10 3/4" @3057' PTSM, Drlg f/5380' -t/5811'. Circ hole clean. POOH t/4300', No tight hole. RIH, Held trip drill. PTSM, Cont RIH t/5746', Wash t/5811'. Drlg f/5811' -t/6187'. Held spill drill. 00:00—06:00 PTSM, Drlg f/6187' -t/6500'. • • 8/23/13 Current Depth @ report time—6970' Yesterdays Depth @ report time-6500' Footage in Last 24 hours—470' Current ROP—29.4 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.2 PV—13 YP—17 Water Loss—6 Filter cake- 1 Last Casing—10 3/4" @3057' PTSM, Drlg f/6187'-t/6755', Circ. Hole clean. POOH t/6692', R/U &circ while changing grabber dies. RIH t/6755'- No tight spots. Drlg f/6755'-t/6895'. 00:00—06:00 PTSM, Drlg f/6895'-t/6970'. 8/24/13 Current Depth @ report time—7500' Yesterdays Depth @ report time-6970' Footage in Last 24 hours—530' Current ROP—39 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.1 PV—14 YP-19 Water Loss—6 Filter cake- 1 Last Casing—10 3/4" @3057' PTSM, Drlg f/6895'-t/7323'. Circulate hole clean. PJSM. POOH f/7323't/6450'. No overpull, RIH f/ 6450' t/7008'. No tight hole. 00:00-06:00 PTSM,RIH f/7008't/7262',W/R f/7262't/7323'. Repair shaker, DrIg f/7323't/7500'. 8/25/13 Current Depth @ report time—7541' Yesterdays Depth @ report time-7500' Footage in Last 24 hours-41' Current ROP—27.3 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.1 PV—15 YP-19 Water Loss—6 Filter cake- 1 • S Last Casing—10 3/4" @3057' PTSM, RIH f/7008' -t/7262',Wash f/7262'-t/7323', No fill. DrIg f/7323' -t/7541'. Held Pit Drill. Change out#2 shale shake motor(bad bearings),Troubleshoot shaker electrical. PTSM, Troubleshoot shaker motor electrical, Circulate w/reduced flow rate. PJSM, POOH f/7541't/ 6692' (Check COM). No Overpull. Pump dry job. POOH f/6692't/862'. No Overpull. Held Trip Drill. 00:00—06;00 PTSM, POOH, Handle BHA(pull sources& D/L data), L/D motor& bit. 8/26/13 Current Depth @ report time—7541' Yesterdays Depth @ report time-7541' Footage in Last 24 hours—41' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.3 PV—16 YP—33 Water Loss—6 Filter cake- 1 Last Casing—10 3/4" @3057' PTSM, POOH & Handle BHA(pull sources& D/L data). Finish D/L data, L/D Motor. Pull wear ring. Test bops-annular 250/2500 psi all other equipment 250/5000 psi-Witness waived by Jim Regg AOGCC on 8/23/2013 at 3:31 PM. Spill Drill 1 minute response. PTSM, Finish BOP test, Fire Drill 3 min 15 sec response. Set wear ring. P/U motor& M/U BHA,orient motor, load sources& upload MWD,surface test motor. RIH t/3026'. Fill pipe, Hole taking 1.5 bbls/hr. PJSM. Level carrier&mast. 00:00—06:00 PTSM, Finish leveling carrier, calibrate MWD, RIH. 8/27/13 Current Depth @ report time—8155' Yesterdays Depth @ report time-7541' Footage in Last 24 hours—41' Current ROP—46.3' Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.2 PV—15 YP-17 Water Loss—6 Filter cake- 1 Last Casing—10 3/4" @3057' PTSM, Finish leveling carrier. RIH t/7448', No tight hole. Wash f/7448' -t/7541', No fill . Drlg f/7541' - t/7607'. PTSM, Drlg f/7607' -t/7982'. Spill Drill - 1 minute response. Pit Drill- 1.5 minute response. 00:00—06:00 PTSM, Drlg f/7982'-t/8155'. 8/28/13 • • Current Depth @ report time—8590' Yesterdays Depth @ report time-8155' Footage in Last 24 hours—435' Current ROP—27.9 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.4 PV—18 YP-19 Water Loss—4 Filter cake- 1 Last Casing—10 3/4" @3057' PTSM, Drlg f/7982't/8205'. Circulate &condition mud, screen down to handle flow. Drlg f/8205't/ 8459'. 00:00—06:00 PTSM, Drlg f/8459't/8590'. 8/29/13 Current Depth @ report time—8857' Yesterdays Depth @ report time -8590' Footage in Last 24 hours—267' Current ROP—21.5 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.4 PV—17 YP—20 Water Loss—5.8 Filter cake- 1 Last Casing—10 3/4" @3057' DrIg f/8459' t/8774' Sliding as needed to drop angle. Circulate hole clean, Flow check-Static. Check COM. POOH f/8774't/7577'. (8-18K overpull f/7891't/7640'). RIH f/7577't/8712'. Wash & ream f/8712't/8774'. 00:00—06:00 PTSM,Troubleshoot TD Hydraulic IBOP valve. Drlg f/8774't/8857'. 8/30/13 Current Depth @ report time—9231' Yesterdays Depth @ report time-8857' Footage in Last 24 hours—374' Current ROP—16.6 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.3 PV—22 YP-26 Water Loss—5.8 Filter cake- 1 • • Last Casing—10 3/4" @3057' Wash & ream t/8774'. DrIg f/8774' t/9173' sliding as needed to drop angle. 00:00—06:00 PTSM, Drlg f/9173't/9200', C/O shaker screens, DrIg f/9200't/9231'. 8/31/13 Current Depth @ report time—9550' Yesterdays Depth @ report time -9231' Footage in Last 24 hours—319' Current ROP—19.9 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.5 PV—26 YP—29 Water Loss—5 Filter cake - 1 Last Casing—10 3/4" @3057' PTSM, Drlg f/9173't/9200'. C/O shaker screens. Drlg f/9200't/9550', section TD, sliding as needed. Pump high vis sweep &circulate out. Flow check. POOH f/9550' t/7950' (Pump out of hole f/ 9550' t/8884',then free pull out) RIH f/7950' t/9426'. Wash & ream f/9426't/9550' - No fill. Pump high vis sweep& circulate out. 00:00—06:00 PTSM, Circulate sweep &circulate hole clean. Pump out of hole t/9119'. POOH t/8337'. Flow check& pump dry job. 9/1/13 Current Depth @ report time—9550' Yesterdays Depth @ report time -9231' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.2 PV—14 YP-16 Water Loss—5 Filter cake- 1 Last Casing—10 3/4" @3057' PTSM, Circulate sweep&circulate hole clean. Pump out of hole t/9119'. POOH t/8337'. Flow check& pump dry job. POOH laying down drill pipe f/8337' t/5636'. RIH stands in derrick t/ 1540'. POOH laying down drill pipe f/ 1540't/ BHA. Hold safety meeting, unload sources &download MWD. 00:00—06:00 PTSM, Download MWD, L/D BHA. Pull wear bushing.Vetco make dummy run with 7 5/8" landing joint& verify. Change lower rams t/7 5/8" &test t/250/3000 psi. 9/2/13 Current Depth @ report time—9550' • • Yesterdays Depth @ report time-9550' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.2 PV—14 YP—16 Water Loss—5 Filter cake- 1 Last Casing—10 3/4" @3057' PTSM, Download MWD, L/D BHA. Pull wear bushing.Vetco make dummy run with 7 5/8" landing joint& verify. Change lower rams t/7 5/8" &test t/250/3000 psi. Test 7 5/8 rams 250/3000 psi. PJSM-Cut and slip drill line. RU to run casing,finish rig up for casing. MU valve on circ swedge,function test. PJSM-PU shoe Jt and Baker Lok shoe track to 1 jt above float collar. Install stop rings and centralizers. RIH with 7.625" casing to 3053'; circulate casing volume ( 3500 stks). RIH to 3478'. 00:00—06:00 Continue RIH w/7.625" to 7500'. Circulate hole 3500 stks. 9/3/13 Current Depth @ report time—9550' Yesterdays Depth @ report time-9550' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.7 PV—19 YP—27 Water Loss—5.8 Filter cake- 1 Last Casing—7 5/8" @7507' RIH w/casing from 3478'to 7507'. Circulate casing at 7507'. 1062 units of gas. RIH to 8512'; circ hole- 1087 units of gas. RIH to 9187'. Wash down f/9187'to 9474'. Circulate casing thru choke and gas buster---Max gas 1500 units. Ck flow; Circulate hole open to shakers--gas started at 400 units down to 38 units. Mud wt 9.65 ppg PP 640 psi at 103 spm. Land casing; RD WFT; RD Lafluer fill up/circ tool; RU Cement head. Circulate hole while finish RU BHI pumping; hold PJSM. Pump 5 bbls water,test cmt lines to 3000 psi; Pump 30 bbl 10.3ppg Seal Bond spacer pump 15.8 ppg Class G cmt. DV COLLAR at 4499' MD. BHI 15.8 ppg cement---249 bbls pumped. NO LOSSES WHILE PUMPING CEMENT OR DISPLACING. No Cmt to surface. Cement in place at 02:01 A.M. 00:00—06:00 Pump total of 249 bbls of 15.8 ppg cmt followed by 5.8 bbls of water. Rig pumped 9238 stks to bump plug with 500 psi over. Hold pressure for 10 min; bleed pressure to pits; check floats. Drop DV collar plug. Pressure up to 750 psi w/BHI to open. Circ annulus clear; pump closing plug; bump plug. LD Landing jt, set packoff. 9/4/13 Current Depth @ report time—9550' • • Yesterdays Depth @ report time-9550' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.7 PV—19 YP—27 Water Loss—5.8 Filter cake- 1 Last Casing—7 5/8" @7507' Pump total of 249 bbls of 15.8 ppg cmt followed by 5.8 bbls of water. Rig pumped 9238 stks to bump plug with 500 psi over. Hold pressure for 10 min; bleed pressure to pits; check floats. Drop DV collar plug. Pressure up to 750 psi w/BHI to open. Circ annulus w/5000 stks; pump closing plug;4920 stks. No cement to surface but a little bit of spacer circulating at DV collar. RD Cmt head, LD landing it; change bails, elevators. RD stabbing board. MU Test jt.; Set pack-off and run in lock downs.Test to 5000 psi for 10 min. Change lower pipe rams to 4"; change swabs and pump liners to 4". Repair finger in derrick, rack 4" dp and strap. RU and test BOP's rams and valves 250/5000 and 250/2500 for hydril. Witness waived by Lou Grimaldi. CIP at 02:01 AM. Bump bottom plug w/9238 stks. 00:00—06:00 Finish testing BOP's. MU bit on bit sub, XO; PU 18 HWDP and RIH w/4" HT-38 DP. 9/5/13 Current Depth @ report time—9550' Yesterdays Depth @ report time-9550' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—15 YP-21 Water Loss—6 Filter cake- 1 Last Casing—7 5/8" @7507' Finish testing BOP's. MU Bit on bit sub and XO; PU & RIH 18 jts of 4" HWDP; RIH w/4" HT-38 DP toC461/45,N • 4968'. Kelly up. Circulate down and tag DV plug at 4993'. Up wt 95K; Dn 85K; Rot 90K. PU DP and RIH t� to 9387'. Circulate hole volume and get consistent mud weight 9.6 ppg. RU and test casing to 4000 Dsi for 30 min. , 00:00—06:00 PTSM--Finish casing pressure test. Bleed pressure off; RD test equipment.Top Drive malfunction f/0:30 to 03:30. Rack back 4 stands, PU 8 singles.Tag FC; double check pipe tally/depth AM: BOP drill w/PU DP. PM: Floor Valve drill w/ RIH. 9/6/13 Current Depth @ report time—9550' Yesterdays Depth @ report time-9550' • • Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.5 PV—15 YP-21 Water Loss—6.1 Filter cake- 1 Last Casing—7 5/8" @7507' PTSM-Finish casing test. Bleed pressure, RD test equipment. Rig down due to top drive malfunction. Rack back 4 stands; PU 9 singles,tag FC and double check pipe strap; 9393'. Drl FC, cmt and shoe. Drill to 9525'; make conn---stuck and packed-off. Work free; regain full circulation. Circulate hole clean; pump HV sweep around; level derrick; Pump dry job. Pull out of hole; break out MX-1 bit. 00:00—06:00 PTSM--RU and run CBL. 9/7/13 Current Depth @ report time—9570' Yesterdays Depth @ report time -9550' Footage in Last 24 hours—20 Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.5 PV—15 YP-21 Water Loss—6.1 Filter cake- 1 Last Casing—7 5/8" @7507' RU and run CBL w/Pollard; cmt top at 5400'. RIH to 9454'. Wash down to 9543' and drill to 9570'. Circulate hole clean; MW all around 9.6#/gal; prep for FIT. Pump FIT; held 14.5 ppg EMW; Pump pressure up to 2460 psi, bled down to 2370 psi. Drill to 9580'; circulate bottoms up,trip gas 28 units. Pump dry job; POH to 6548'. 00:00—06:00 PTSM-Hold weekly safety meeting. Continue POH. 9/8/13 Current Depth @ report time—9755' Yesterdays Depth @ report time-9570' Footage in Last 24 hours—185 Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—16 YP—26 Water Loss—5 s • Filter cake - 1 Last Casing—7 5/8" @7507' PTSM-POH/PU/MU new BHA. Upload LWD; Finish PU BHA. RIH w/HWDP PU and RIH w/4" DP f/709'to 1844'. RIH to 9538'. Circulate and condition mud; reduce fluid loss and work air out of mud. 00:00—06:00 PTSM-Finish circulating/conditioning mud;Upper mud saver valve partially closed w/conn. Repair valve problem.Wash/Ream down to 9580'; Drl f/9580'to 9755' at report time. 9/9/13 Current Depth @ report time—10567' Yesterdays Depth @ report time-9580' Footage in Last 24 hours—987 Current ROP—36.8 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—9 YP-46 Water Loss—4.6 Filter cake- 1 Last Casing—7 5/8" @7507' PTSM--Circulate and condition mud. Wash/ream from 9538'to 9580'. Drill f/9580'to 9999' (CBU at 9860'---400 units of gas). PTSM--Drill/slide f/10,000'to 10,382'. 00:00—06:00 PTSM--Drill/slide f/10382'to 10567'. 9/10/13 Current Depth @ report time—10950' Yesterdays Depth @ report time- 10567' Footage in Last 24 hours—383' Current ROP—36.8 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—18 YP—22 Water Loss—4.7 Filter cake- 1 Last Casing—7 5/8" @7507' Drill/slide f/10382' t/10803'. Circulate hole while rotate/reciprocate at 220 spm. POH f/10,803'to 9404'---tight from 10362-10045'. PU DP/RIH having to wash down f/9660'to 9950' and 10,500'to 10,803'. Drill f/10803'to 10,837' 00:00—06:00 PTSM--Drill/slide f/10,837' to 10950' 9/11/13 • 11, Current Depth @ report time—11374' Yesterdays Depth @ report time- 10950' Footage in Last 24 hours—424' Current ROP—30.4 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.7 PV—18 YP—22 Water Loss—4.6 Filter cake - 1 Last Casing—7 5/8" @7507' PTSM--Drill/slide f/10,837' T/11,060' PTSM--Drill to 11,071',Slide to 11,088'. Drill f/111,088'to 11,260'. (Replace swab in#1 mud pump) 00:00—06:00 PTSM--Drill f/11,260' to 11, 374'. 9/12/13 Current Depth @ report time—1136' Yesterdays Depth @ report time- 11374' Footage in Last 24 hours—22' Current ROP—30.4 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.7 PV-25 YP—22 Water Loss—4.5 Filter cake- 1 Last Casing—7 5/8" @7507' PTSM--Drill f/ 11,260'to 11, 374'. Pump HV sweep; circulate hole clean. Drill to 11,396', pump HV sweep. PTSM--Circulate hole clean, POH to 9450'; monitor well. Strap out of hole to top of Baker Tools (280') 00:00—06:00 PTSM--LD BHA; Download data;finish LD BHA. Pull wear bushing; RU to test BOP's 9/13/13 Current Depth @ report time—11396' Yesterdays Depth @ report time - 11374' Footage in Last 24 hours—22' Current ROP—30.4 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.7 PV—25 • . YP—22 Water Loss—4.5 Filter cake - 1 Last Casing—7 5/8" @7507' PTSM--LD BHA; Download data; finish LD BHA. Pull wear bushing&test BOP's 250/5000 psi on rams and valves. 250/2500 Hydril.Witness waived by Jim Regg. RD Test equipment; Set wear bushing. RU Schlumberger for [-logs. RIH w/Sonic log to 9553'; POH and RD loggers. PU 4" HWDP to make up for previous BHA; RIH to 7030' at midnight. 00:00—06:00 PTSM--RIH to 9405'. CBU while Slip and cut drilling line; service top drive. 9/14/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11374' Footage in Last 24 hours—22' Current ROP—30.4 Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.8 PV—26 YP—22 Water Loss—4.5 Filter cake- 1 Last Casing—7 5/8" @7507' PTSM--RIH to 9405' PJSM--CBU while Slip and cut drilling line; service top drive. Wash/ream f/9480' t/9660'. Pull into shoe; tried RIH w/o pump---no go. Wash/Ream from shoe to 9729'. Wash/ream and RIH to 11,180'. Pump HV sweep, CBU to clean hole 00:00—06:00 PTSM--Finish circulating HV sweeep,wash to bottom at 11,396'. Pump 20 BBL HV sweep; Circulate and increase MW to 10.0 ppg; Pump 35 BBL HV Sweep--Brought back 1" pieces of coal-circ to clean up. 9/15/13 Current Depth @ report time—11396' Yesterdays Depth @ report time - 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-10 PV—28 YP—25 Water Loss—4.5 Filter cake - 1 Last Casing—7 5/8" @7507' • PTSM--Finish circulating HV sweep,wash to bottom at 11,396'. Pump 20 BBL HV sweep; Circulate and increase MW to 10.0 ppg; Pump 35 BBL HV Sweep--Brought back 1" pieces of coal-circ to clean up. POOH t/9970'- Pump out as needed. Pump Hi-Vis sweep, more coal. PTSM, POOH t/9490',Tight @ 9845'RIH t/9848' - No tight spots, POOH t/9480' -No tight spots CBU, minimal coal POOH. 00:00—06:00 PTSM, R/U Schlumberger E-line, RIH w/Sonic/Triple Combo log, Stopped @ 9780', POOH, Remove centralizer from bottom of tool, RIH, Stopped @ 9780', Log to shoe 9/16/13 Current Depth @ report time—11396' Yesterdays Depth @ report time - 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-10 PV—29 YP—26 Water Loss—4.5 Filter cake- 1 Last Casing—7 5/8" @7507' PTSM, R/U Schlumberger E-line, RIH w/Sonic/Triple Combo log, Stopped @ 9780'. POOH, Remove centralizer from bottom of tool, RIH,stopped @ 9780', Log to shoe. POOH, Re-configure tools, RIH, Stopped @ 9780', POOH, R/D E-line M/U Bit& RIH t/1700'. PTSM, Cont. RIH t/9770', Pass thru 9770' - 9790', no excess drag, RIH t/9908'. Wash & ream f/9908'-t/10,870'. 00:00—06:00 PTSM, RIH f/ 10,870-t/ 11,396', 9' Fill, Circ Hi-Wt& Hi-Vis sweeps @ 7 bbls coal, Pump 2nd Hi-Vis sweep,Weight-up t/ 10.2ppg. 9/17/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-10.1 PV—28 YP-26 Water Loss—4.5 Filter cake- 1 Last Casing—7 5/8" @7507' • • PTSM, RIH f/ 10,870-t/ 11,396', 9' Fill,Circ Hi-Wt& Hi-Vis sweeps @ 7 bbls coal. Circ. Hi-Wt& Hi-Vis sweeps,got back @ 7 bbls coal, Pump 2nd Hi-Vis sweep, Weight up t/10.3 ppg. POOH t/9470, Back ream as needed. PTSM, Circ. Hole clean RIH t/10,780', Ream as needed Wash & ream f/10,780' -t/ 11,396. Circ. Hi-Vis sweep,got back @ 7 bbls coal. POOH, Work tight spots @ 10,420', 10,405' & 10,114', Pump slug @ shoe, Cont. POOH t/8,255' 00:00—06:00 PTSM, Cont. POOH f/8,255', 9/18/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.1 PV—24 YP-21 Water Loss—4.5 Filter cake- 1 Last Casing—7 5/8" @7507' Poh f/8273', lay down bit,subs, 1 jt hwdp. Clean floor, pull wear bushing, monitor well (static). R/u equipement,test vbr's&4.5" annular 250 psi low&2500 psi high f/5 min,test vbr's 250 psi low& 5000 psi high f/5min. Change elevators, r u csg tools. Pjsm, run 4.5" 1-80 12.6#csg liner w/hyd 563 thread( 50jts)fill pipe every 10 jts. M/u hanger&setting tool,fill hanger w/fluid, r/d weatherford, rih w/ 10 stds hwdp+30 stds 4" dp to 4655' (fill pipe every 20 stds/rih @ 30-45 seconds per std) 00:00—06:00 Continue rih w/4.5" liner/fill every 20 stds 9/19/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.2 PV—27 YP—22 Water Loss—4.5 Filter cake- 1 Last Casing—4%2" @11396' Rih w/liner to 9450'. Fill pipe &circ bttms/up, rih to 10,800'. Rih w/4.5" liner 1/10800'to 11,396' m/u CiviC cement head circ bttms/up 12,765 strokes, 126 gpm,770psi. R u baker cementers f/cmt job, pjsm, press \, lines 500 psi low/3000 high, (ok), mix& pump 40bbl sealbond spacer @ 11ppg, mix& pump 81.9 bbls_ cmt, baker displace 30 bbls mud turn over to rig, rig displace 100 bbls of mud, did not bump plug, cmt in • . place @ 22:00 hrs. Set hanger @ 9273' & release liner, set packer w/35k down wt. Attempt to reverse out, press up/bled off circ out long way 17,500 strokes. L/d cmt head & 1 jt dp, pooh f/9273 to 9070' 00:00—06:00 Ptsm, adjust torq tube, poh standing back 147 stds. 9/20/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.2 PV-27 YP-22 Water Loss—4.5 Filter cake- 1 Last Casing—4%2" @11396' Poh f/9070'to 6234', pump 20bbl slug, poh f/6234' to 2099' (147 stds in derrick) pjsm, l/d 4" hwdp+4" dp. L/d baker setting tool, pull wear bushing, r/u test jt&fill stack. Test bope, anular to 250 psi low/ 2500 psi high,test 2 sets pipe, blind rams, kill line valves, choke line valves, &all choke manifold valves, fir safety valve, ibop valve,top drive valves to 250 psi low, &5000 psi high. Rig down test equip. & rig up to run 2 7/8 dp. M/u junk mill,scraper bha, rih w/27/8 dp, (strap&drift 2 7/8 dp) 00:00—06:00 Rih w/dual csg scraper assembly. 9/21/13 Current Depth @ report time—11396' Yesterdays Depth @ report time - 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.2 PV—27 YP—22 Water Loss—4.5 Filter cake - 1 Last Casing—4%2" @11396' Finish PU 2 7/8" DP, 58 jts. PU 7" scraper and & RIH to 5920'. Circ bottoms up&continue RIH 9320'. Circ bottoms up & RIH to 10830' and wash down to 10988'. Circulate, building completion brine. Filter brine water and displace hole with 9.6 ppg brine water. 9/22/13 Current Depth @ report time—11396' Yesterdays Depth @ report time - 11396' • • Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.2 PV-27 YP—22 Water Loss—4.5 Filter cake- 1 Last Casing—414" @11396' Filtering brine. Displace hole w/40bbl hi vis sweep, 60 bbl water spacer, followed by 9.6 ppg spacer. Filtering brine while circ hole 200spm w/2500psi w/50 micron sox. Filtering brine @ 200 spm w/2600 psi @ 10996'w/100 micron filter sox 00:00—06:00 Press test 4.5" liner& liner lap broke down @ 3200 psi took 1/2 bpmr/d test equipement poh. 9/23/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 YP—22 Water Loss—4.5 Filter cake- 1 Last Casing—4Y2" @11396' Filter brine 250 spm @ 2650 psi w/50micron sox filter. Press test csg(no test). Poh f/10996'to 9000' flow check well. Poh f/9000'to bha total displacement 57bbls. R/u weatherford to 1/d bha. Std back 2 7/8 dp in derrick, I/d 4 1/2" scraper assembly. R/u e-line rih w/gage ring,tag bttm 10977 wlm poh. 2nd run, run cbl,gammaray,ccl, rig down e-line. Rih w/41/2' rtts on 2 7/8 dp to 1813'. R/u to run 4" dp. Rih w/4" dp to 2320'. 00:00—06:00 Rih w/ rtts to test liner lap. 9/24/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 YP—22 Water Loss—4.5 • • Filter cake- 1 Last Casing—41/2" @11396' Repair hydraulic hose on elevators. RIH F/2320'T/5910 w/4 1/2"RTTS Service rig& pump out trip tank. RIH WI RTTS F/5910'T/9314', Kelly up, break circulation, set RTTS @ 9304'. Pressure up on annulus, started injecting at 35 spm at 3200 psi. Set again at 9376',Test down DP no good. RIH WI RTTS to 10,580' Kelly up @ 10,517', Break circulation, 75 spm at 400 psi. Set RTTS at 10,530',Test down DP no good. Pump 15 bbl dry job, POOH F/10,530'T/7490'. POOH W/RTTS F/7490'T/1813'. R/U Weatherford 2 7/8" pipe handling equipment to rack back 2 7/8" DP. POOH F/1813'T/BHA, LD 4 1/2" RTTS. Send tool for redress. PJSM, lubricate, perform maintenance while RTTS being redressed. Found cut 0 ring. M/U Redressed RTTS to 2 7/8" DP, RIH T/1813'. 00:00—06:00 RIH with 4 1/2" RTTS F/ 1813'T/9314'w/4" DP. Set RTTS in the 4 1/2" casing and test the shoe to 4,000 psi for 30 min.Test was good 9/25/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 YP—22 Water Loss—4.5 S Filter cake- 1 Last Casing—4'A" @11396' PTSM, Cont. RIH w/4-1/2" RTTS f/ 1813'-t/9314'. Set RTTS @ 9310',Test Liner t/4000 psi,OK,Test Liner Lap - Leaking with 3100 psi @ 1.03 bpm, Unseat RTTS. POOH, PTSM, Cont. POOH & L/D RTTS. R/U Pollard E-Line,Set Composite Bridge Plug @ 9900',correlated to CBL/GR 9-22-13. R/U joint of 5" DP W/ pump in sub for lubricator. Close in pipe rams for fluid diversion. RIH W/E-line and 6 shot perf gun to 9870'to 9872'. Run CCL strip chart for depth correlation. All shots fired,well bore has bubbling but no gain. R/U E-line to run and set Halliburton Composite Retainer at 9860', RIH. 00:00—06:00 RIH on E-line, Run CCL strip chart to set Composite Retainer, POOH W/ E-line. Retainer did not set, Halliburton taken setting tool back to shop for another retainer. 9/26/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—9 7/8" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 YP-22 110 • Water Loss—4.5 Filter cake- 1 Last Casing—4%2" @11396' PTSM, RIH on E-line, Run CCL strip chart to set Composite Retainer, POOH W/ E-line. Retainer did not set, Halliburton rebuilding setting tool back at shop&get another retainer. Wrong shear pins in setting tool. M/U Retainer& RIH, Set @ 9857', POOH & RID. M/U Stinger& RIH. PTSM, Cont. RIH w/ Stinger. R/U to squeeze cement,Test lines t/5000 psi.,Sting in and circ 30 bbls. Final circ. pressure 1500psi @ 3 bpm, Unsting from retainer and pump bottoms up at 3.15 bpm and 800 psi while waiting on pump truck. Pump 5 bbl fresh water, mix and pump 30 bbls of 15.8 ppg cement(145 sks), displace W/3 bbl fresh water and 90 bbl 9.6 ppg brine. CIP 21:09, Final 2000 psi @ 3bpm. Unsting from retainer and pump 6 bpm at 2700 psi. Highest PH was 13.2 but no free cement. Cement was diluted into brine system. Mix and pump a dry job, lay down single. POOH on trip tank to 9750'. 00:00-06:00 POOH 9750' to 1831'. 9/27/13 Current Depth @ report time—11396' Yesterdays Depth @ report time - 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 VP— Water Loss— Filter cake- Last Casing—4%2" @11396' PTSM, POOH 9750'to 1831' changing out elevators. Cont. POOH & L/D Stinger. Pull wear ring. R/U & test BOPs w/AOGCC Rep Jeff Turkington, Annular t/250/2500psi, Upper and lower pipe rams failed. Test blind rams, CMVs 1-12, Kill line Valves, Mud Manifold Valve to 250 low 5000 high.Test koomey. Had one bolt in door on driller side that would not budge. Rented a hydraulic wrench from GE. It would not budge at highest pressure of tool. Bolt head had some deformation. AOGCC rep Jeff Turkington called at 23:00 to pass on witnessing rest of BOP Test. 00:00—06:00 Work Plan to repair lower BOP single gate or replace it. No replacement bolt available. Pressure test casing and liner lap to 4000 psi for 30+minutes.Test good, bleed off. Nipple down BOP to replace lower single ram body. Lock in test plug, Monitor casing. 9/28/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 • S YP— Water Loss— Filter cake- Last Casing—41/2" @11396' Work Plan to repair lower BOP single gate or replace it. No replacement bolt available. Pressure test casing and liner lap to 4000 psi for 30+ minutes, 100 psi bleed off. Nipple down BOP to replace lower single ram body. Lock in test plug, Monitor casing. Set out single gate rams. PTSM,Set in single gate rams, Install 4" pipe rams, Nipple up bops,function test. PU 4" test joint,test top variable rams, lower kelly cock and kill line back to floor. All tests 250 low 5000 high.Test manual choke line valve,test HCR. 00:00—06:00 Test lower 4" pipe rams.Test vbrs w/2-7/8"tbg complete BOPE test. Set wear ring, Inspect drilling line. 9/29/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 YP— Water Loss— Filter cake- Last Casing—41/2" @11396' PTSM,Test lower 4" pipe rams.Test VBRs w/2-7/8"Tbg, Complete BOPE test,Set wear ring, Inspect drilling line. M/U Mill & Motor, RIH. PTSM, Cont. RIH t/9764'. Slip Drlg line, RIH,Tag up at 9811'. Drill cement to top of retainer at 9849', Drill retainer to 9854', Drill cement to 9886'. Circulate 20 bbl vis sweep around to clean hole. 00:00—06:00 Finish circulating sweep around. Test perfs at 9870'to 3800 psi at 1 bpm. Bleeds to 3000 psi. (7765 psi/0.8 psi/ft). Circulate bottoms up at 82 spm 917 psi. POOH. 9/30/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 VP— Water Loss— Filter cake - Last Casing—4'A" @11396' PTSM, Cont. circ. Hi-Vis sweep to clean hole f/9886'. Test perfs at 9870', Broke Down at 3800 psi at 1 bpm. Pressure bleeds to 3000 psi. • Circulate bottoms up at 82 spm 917 psi. POOH, LD motor and mill in one piece. Service rig. RU and run CBL with Pollard E line to 9883' W/L. Send results to AOGCC. Wait on orders. Verbal orders from Craig Rand to RIH. M/U Clean-out assembly& RIH t/3276'. 00:00—06:00 RIH filling every 3000' w/ Motor and 3 3/4" mill.Tag up at 9888'. Mill from 9888'to 9898'. 10/1/13 Current Depth @ report time—11396' Yesterdays Depth @ report time - 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 YP— Water Loss— Filter cake - Last Casing—4 'A" @11396' PTSM, RIH filling every 3000' w/ Motor and 3 3/4" mill.Tag up at 9888'. Mill from f/9888' -t/9895'. PTSM, Milling Bridge Plug f/9895' -t/9896'. Fell free. RIH t/ 10,998' & pump high vis sweep around, circulate hole clean. 120 gpm at 1360 psi. Pump dry job and POOH to 4026'. Pulled wet with motor on anyway. 00:00—06:00 PTSM, POOH from 4026'to surface, LD 4 jts of 2 7/8" DP, LD motor and mill. PJSM Rig up Schlumberger and run CNL. 10/2/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 YP— Water Loss— Filter cake- Last Casing—4%2" @113961 PTSM, POOH from 4026'to surface, LD 4 jts of 2 7/8" DP, LD motor and mill. PJSM, Rig up Schlumberger and run CNL. M/U Mill &4-1/2" Csg Scraper, 2-7/8 DP &7-5/8 Csg scraper t/6198'. PTSM,Cont. RIH w/ dual scrapers t/ 10,921',Tag 7-5/8 Liner @ 9238. Circ. Hi-Vis sweep. Rig up and lay down Drill Pipe to 5080'. Rinse with fresh water. 00:00—06:00 Lay down DP from 5080'to 1000'. • • 10/3/13 Current Depth @ report time—11396' Yesterdays Depth @ report time- 11396' Footage in Last 24 hours—' Current ROP— Current Bit size—" Mud Type—MI KLa-Shd Mud Weight-9.6 PV—26 YP— Water Loss— Filter cake- Last Casing—41/2" @11396' PTSM, Lay down DP& BHA f/5080'. R/U Pollard & Run 3.82 gauge ring t/9750'. PJSM, M/U 3-1/8" 6 spf Millennium Guns. PTSM,Cont. M/U X-Nipple, pups&Weatherford 4-1/2" Ultra Pak. RIH w/guns& Pkr on E-line,Set Guns @ 9792' -9816',Top of Pkr @ 9715'. X-Nipple @ 9727', POOH & R/D, Pull Wear Ring. PU 2-4" DP pup joints and make up test tree and riser, Laydown on pipe rack. Load V door with tubing, make up seal/latch in assembly, PU and run 2 7/8" 6.5#tubing. Had to change out Weatherford tongs on joint#5 due to inoperative.To 3833', 116 jts'. TOP OF LINER @ 9249'. 00:00—06:00 Run 2 7/8" 6.5#, 8R tubing as follows: Seal assembly, 245 jts, Injection mandrel,46 jts, SSSV, 18 jts,tag up, space out. (299jts total) 6:00 at 8015'. 10/04/13 PTSM, Run 2 7/8 tubing t/8030'. M/U Chemical Injection Mandril w/1/4" SS Tbg, Cont. Run Tbg. PTSM, Cont. Run 2 7/8 tubing t/9715'. Space out Tbg, P/U hanger&Test head,Terminate control lines, SSSV has 5000 psi. R/U and circ packer fluid. 5 bpm at 1950 psi. Adding corrosion inhibitor and biocide. Test testhead and N2 lines to 500 psi low 6000 psi high. Displace 47 bbl fluid from tubing with N2.Take returns to tanks 4 and 5 for measure. Final Nitrogen pressure of 2700psi. Land seal assembly with 18 k and hanger in wellhead. Screw in lock down screws. Test and chart 7-5/8" casing by 2 7/8" tubing annulus to 2000 psi for 30 minutes. Finish rigging up Weatherford Testers flow line. 00:00—06:00 Run 2 7/8" 6.5#, 8Rd L80 tubing as follows: Seal assembly, 245 jts,Chemical Inj. Mandrel @ 1791',46 jts, SSSV @ 622', 18 jts, (299jts total) 34 SS Bands. Fill Weatherford lines and test to 500 low and 5000 psi high. General preparation for well test in AM. 10/5/13 PTSM, Fill Weatherford lines and test to 500 low and 5000 psi high. P/U &Test lubricator w/drop bar installed t/5000psi, bleed Nitrogen t/1700 psi. Inspect all lines, Drop Firing Bar @ 0845, Guns fired, Initial pressure 1705psi, Flow well to clean up,Shut in for 4 hr. Build-up, R/U Pollard Slick-line. PTSM,Test lubricator t/4000 psi, RIH and set Down-Hole Pressure Gauges @ 9660'. Initial shut-in 3325 psi, Final shut-in 3350 psi. Flow well, Delayed to open up until 17:45 due to problems at the flare stack. Initial flow pressure 3264 psi when opening up. 3004 psi at midnight. Casing pressure at 24:00 hrs 350 psi. 00:00—06:00 Flow well. 3004 psi at 24:00 hrs, ESV restricted flow at 01:00 hrs, Cleared by 01:45 hrs. • . Flowing thru 12/64 choke, 1350 psi, 1.3 mcf 10/6/13 PTSM, Flow well. 3004 psi at 24:00 hrs, ESV restricted flow at 01:00 hrs, cleared restriction @ 1:45, Flowing thru 12/64 choke, 1350 psi, 1.3 mcf. Flow Test Well - Rate 0715 hrs. 12/64", 3000 psi, 2.6 mcf, 11:45 hrs. 12/64", 3046 psi, 2.7 mcf. PTSM, Flow Test Well - 16:00 hrs on 14/64 choke at 3046 psi and 2.51 mcf. 00:00—06:00 Shut in well for 24 hr build up. Surface pressure 3333 psi at 24:00 hrs. 10/7/13 PTSM, Well shut in for 24 hour build up. 06:00 surface pressure 3332psi. Well shut in for build up. PTSM, Well shut in for build up. Perform 4 point flow test. Choke sizes 10, 12, 14, and 16/64th 00:00—06:00 Finalize 4 step flow test and add one 15 minute peroid of 20/64 choke. 2525 psi at 5.92 MMCF. Shut well in and bleed down flow lines. Rig down Weatherford flow testers, RU Polard and retrieve gages. Set X nipple 9727'. 10/8/13 PTSM, Finalize 4 step flow test 20/64 choke, 2525 psi @ 5.92 MMCF. Shut well in and bleed down flow lines. RU Pollard to retrieve Down-hole gauges. Pump methanol to Wellhead. Retrieve Gauges. Attempt to RIH w/X-Plug, could not get thru DP X-O. PTSM, RIH w impression block, stopped in X-O, RIH w/2.30 t/2800' WLM. RIH w impression block, stopped in X-0, RIH w/2.30 t/9800' WLM, RIH w/X-Plug tight @ DP X-O, stopped @ SSSV, POOH and re-pin, RIH,set X-plug in nipple. RIH with Prong,Tag X-plug, POOH, Prong on W/L. Re-pin and RIH w/prong. Set prong, bleed from 3400 psi to 2400 psi, holding at 15 minutes, RD Polard wireline. Bleed pressure off of control line to close the SSSV. Bleed off Tubing to zero and wait 15 minutes, Back out test tree and rig down. Rod the BPV into the Wellhead hanger. Well secured at 22:30 hrs Nipple down flowline and BOP stack. 00:00—06:00 PTSM N/D BOPs. Drop out lower single gate. 10/9/13 >% PTSM N/D bops. Drop out lower single gate. PJSM: Nipple up Tree w/Vetco Rep; Continue rig maintenance and housekeeping Inventory spare filters; clean cuttings box. Nipple up tree;test to 10,000 psi; install Back-pressure valve. Work on PLC at driller's console; clear pit lines/manifold; rig down boiler. Rig down panic line, kelly hose,vibration hoses; change out saver sub on topdrive. Slip and cut 200' of drill line; 21 total raps on drum; prep to RD topdrive. 00:00—06:00 PTSM--PJSM-Rig down/service top drive. Prep to lay down. 10/10/13 • • PTSM--PJSM-Rig down/service top drive. PJSM--Put topdrive in cradle; lay down topdrive. Remove torque tube VA-leg. Prepare floor to L/D torque tube; change oil in DW chain case; Load out spare gen set. R/D rig floor pipe handling equipment. PTSM--PJSM-L/D torque tube; Load out trucks w/misc tools &equipment. R/D flow line & mud pump pop off lines; Roll up Koomey lines. Change out 3" gun line swivels. Replaced 1 rear tire on carrier&8 tires on sub-base. 00:00–06:00 PTSM--Check& repair Trailer lights & brakes; organize parts trailer; grease &check manifold &choke manifold valves. 10/11/13 PTSM—General Housekeeping, Maintenance and Preparations to move. Check& repair Trailer lights& brakes; organize parts trailer; grease &check manifold &choke manifold valves; blow down steam coils. Cont. clean/organize parts house; Inspect suction manifold valves. Mech.To replace injector line on manlift; repair/check trailer lights for highway use. Remove U-tube on Poorboy degasser; replace charge pump#2 suction rubber. PTSM--Replace 3" ball valve & swivel on pit#1 gun line; Inventory pump liners, swabs,valves and other parts. Remove cylinder covers on carrier rams/derrick rams. Grease API grooves; never seize hammer unions on manifold. Organize BOP conex; flush single gate rams; Repair two sensators; coil up misc, hoses on rack. Transfer used oil f/day tank to drums. Replace equalizer vavle between pits#3 and #5. Repair trailer lights on camp Gen.trailer. 00:00–06:00 PTSM--Continue on pump part inventory; derrick inspection; sub inspection General housekeeping and rig maintenance 10/12/13 PTSM--Continue on pump part inventory; derrick inspection; sub inspection. General housekeeping and rig maintenance; RD gas buster and secure for move. Dress pumps for rig move; prep camp, mech shop for rig move. Check pump parts inventory; secure board-loosen load lines f/crown to carrier. Rig down motor shed roof; secure ODS tong wt bucket. PTSM, Change out boiler pressure gauge, Fill boiler chemical tank, R/D unnecessary outside lights; remove 4" rams f/single gate rams body; R/D air and water from choke house. Secure DS tong wt bucket; secure hoses on east end of pump room. Secure bridge crane in cellar; service flow line chain hoist under choke house. Replace retractable anti-fall device in cellar; R/D centrifuge; R/D unnecessary electric lines. Stage temp light plants around rig. 00:00–06:00 Weekly Safety Meetings held at noon & midnight for each crew. Good Communication Safety topic: Rig Move-rigging for crane picks, trucking, signaling, packing and hauling. Freeze protect lines; blow down non-essential lines. Prep for rig move. 10/13/13 PTSM, Freeze protect draw-works, blow down non-essential lines, repair rotary table. Lock&floor plate,fix draw-works chain guard leak, check nitrogen pressure in Koomey bottles, clean rig. PTSM, Fill nitrogen pre-charge in Koomey, clean rig, continue with misc repairs while cleaning. 00:00–06:00 PTSM---Clean sub & carrier walls. Make various repairs while cleaning. 10/14/13 PTSM--Continue cleaning and preparations for dismantling the rig components. Make repairs as needed; inventory and organize parts • PTSM-PJSM--Rig down beaver slide and catwalk. Prep derrick for scoping down; secure blocks and service loop. R/D driller's console remove trip tank f/cellar; continue to clean up and make repairs. 00:00—06:00 PTSM---Continue cleaning; review JSA's for upcoming crane work; prep to lower Derrick. Repair entry stairs on man camp. 10/15/13 PTSM---Continue cleaning; review JSA's for upcoming crane work; prep for crane work&to lay down mast; repair entry stairs on man camp. PJSM, Crane work, load BOP connex, Remove rear wind-walls &floor plate, DS stairs PTSM. Cont. crane work, set out Driller's dog house &grey iron, Choke house stairs, Choke house &grey iron, L/D front wind-walls, set out centrifuge, fuel tank&derrick house. Raise &secure rig floor extensions, lay derrick on carrier, secure cables. Peak welder installed new crush block. Remove berm around rig. Load trailers with rig components. Secure connex contents for moving to West Eagle. 1587 gallons fuel off- loaded from rig. 00:00—06:00 Prep to drive carrier off float. Finish removing berm. Inspect wheel bearings on carrier. Lower stack on gen house. Prep crown for inspection 10/16/13 Prep to drive carrier off float. Finish removing berm. Inspect wheel bearings on carrier. Lower stack on gen house. Prep crown for inspection. Move carrier, mud boat and sub-base PTSM, Lower sub and prep to move, split pits & pump modules, P/U rig mats, liner&felt from where carrier and sub were. Cut liner for disposal; secure misc equipment in gen house; board up shelves in connex boxes; organize storage baskets in mech shop and parts connex; clean up around location. Paint crown.Team Industries inspected crown and no cracks were found. 00:00—06:00 Continue cleaning around location. Strap individual items on pallets for trucking. 10/17/13 PTSM, Continue cleaning around location. Strap palletized items for trucking. Organize trailer loads, Cleaning. PTSM, Change out breaker for#2 water pump, tighten electrical terminals in generator house, Chip paint on generator house floor, Install cellar cover around wellhead. 00:00—06:00 PTSM, Sort out tubulars to take to West Eagle. 10/18/13 PTSM, Sort out tubulars to take to West Eagle, Cont. Chipping paint on generator floor, cleaning PTSM, Cont. Chipping paint on generator, Change out air tank pop-offs. 00:00 -06:00 PTSM, Steel seal & primer generator floor, chip paint in mud hopper area. 10/19/13 PTSM, Steel seal & rimer generator floor, chip paintpp in mud hopper area. Remove#2 Denison Drive p Line for move, steel seal, hopper area, suction line in pit#3. Attend HSE &Compliance Meeting. PTSM, Paint crown, chip paint in pits, organize shaker screens on rack. Weekly Safety Meeting. 00:00—06:00 • PTSM, Paint generator floor, prep rusted areas in pits for paint. 10/20/13 PTSM, Paint generator floor, prep rusted areas in pits for paint. R/D mud pumps for removal. PTSM, Cont R/D mud pumps, prep rusted areas in pits for paint, level pad and road-way, cleaning in pits. 00:00—06:00 PTSM, Prep rusted areas in pits for paint. 10/21/13 PTSM, Prep rusted areas in pits for paint, set out mud pumps. PTSM, Clean pump room & prep mud pump area for paint. Prep rusted areas in pits for paint. 00:00—06:00 PTSM, Prep mud pump area for paint. 10/22/13 PTSM--Prep mud pump area for paint. Work on satellite accumulation area. Start painting valve handles, pump room. Clean suction flanges on MP#1 &#2. Replace splash guard rubber on#2 shaker; inventory BOP ram elements. Put 11" 10 K elements and 2 7/8 pups in connex; tear down mud cleaner and clean cones, clean and service cellar jacks. Rremove and make repairs to cantilever beam. Finish painting trash separation bbls; finish loading pump trailer; load shaker screen connex on trailer; inventory equipment on each trailer for rig move. 00:00—06:00 PTSM--Fuel up equipment; repair drain in cellar; work on cantilever beam. 10/23/13 PTSM--Fuel up equipment; repair drain in cellar; work on cantilever beam. Painted valve handles, pop off lines,floor under koomey,waterlines, gun lines, labeling on pits and fixed switch on flood light. Scrub and power wash grating in pump room, welding on SAA barrel rack, Rotated steering assembly on front axle of carrier. PTSM - Paint in pump room, scrub and power wash more in pump room and pits for painting, organize misc materials that will stay. Installed shipping block on centrifuge, moved pump room grating to parts house, cleaned off more debris from equipment on trailers, built gaskets for rod wash suctions. 00:000—06:00 PTSM-Cover discharge on mud pumps for road. Paint hydraulic, water, and air lines in pump room. Continue to sweep gravel and dirt off loaded trailers. Welder working on SAA barrel rack. 10/24/13 PTSM-Cover discharge on mud pumps for road. Paint hydraulic, water, and air lines in pump room. Trouble shoot lights on carrier. Clean and paint SAA barrel rack. PTSM -Continue cleaning and maintenance. Cleaning koomey for paint, paint exhaust stacks on generators, and boiler. Blow down lines with air, double check. Clean walls in pump room. Steam clean condensate tank in boiler house. Move matt boards so trucks can move pit and pump room. 00:00—06:00 PTSM - Chain up stairs on pits and pump room for moving them off well. Clean and Inspect API grove on discharge lines in pump room, need replaced. Welder finishing up on SAA rack. 'L'S-091 • 23�sc, Ht'cr.%%I I H February 18, 2014 Mr. Steve Davies RECEIVED Petroleum Geologist Alaska Oil & Gas Conservation Commission FEB 21 2014 333 West 7th Avenue, Suite 100 ®GCC Anchorage,AK 99501 l� RE: KL#1-4 Well Composite Well logs, Digital data, and formation logs Dear Mr. Davies: Enclosed please find the following documents for the Kenai Loop#1-4 well: 1. Composite well logs—Baker Hughes 2. Digital well logs—Baker Hughes 3. Formation logs—Binder with paper and digital logs—Canrig If you have any questions, please call me at 713-468-1678. Sincerely, /1/12— n R. Dunn Engineering Support Technician Enclosures 11200 Westheimer, Ste. 900 Houston Texas 77024 Phone: 713-468-1678 Fax: 713-468-3717 BUCG A S K ACANEER A February 10, 2014 RECEIVED Mr. Steve Davies Petroleum Geologist FEB 18 2014 Alaska Oil and Gas Conservation Commission 6 333 West 7th Avenue, Suite 100 /� GCC Anchorage, AK 99501 RE: Kenai Loop#4 Final composite printed and digital log for KL 1-4 Dear Steve, Enclosed please find the following documents for the Kenai Loop#4 Well: 1. CD with digital composite logs 2. Final Paper prints of composite log in 2" and 5" if you have any questions, please call me at(713)468-1638. Regards, R. Dunn Engineering Support Technician Buccaneer Energy, Ltd Enclosures 11200 Westheimer,suite 900,Houston,TX 77042 Office: (713)468-1678 Fax: (713)468-3717 • RE CEIVED OCT 2 8 2013 AOGGC BUCCANEER October 24, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Kenai Loop#1-4 Well Documents Dear Ms. Foerster, Please find attached information as required by 20 AAC 25.070 for your review. Pertinent information attached to this application includes the following: 1) Form 10-407 Well Completion or Recompletion report and log 2) Directional Survey 3) Final Wellbore Diagram 4) Weatherford Well test Data 5) KL 1-4 Log list If you have any questions or require additional information, please contact Steve Ward at 713 468- 1678. Stephen L Ward Operations Manager- Production Buccaneer Energy Inc. SLW/jd Enclosures Cc: David Fulton 952 Echo Lane,Suite 420,Houston,TX 77024 U.S.A.•Phone:713-468-1678•Fax:713-468-3717•www.BuccaneerResources.com 215 Fidalgo Avenue,Suite 100,Kenai,AK 99611 U.S.A.•Phone:907-335-0600•Fax:907-335-0601 •www.BuccaneerAlaska.com Level 9,25 Bligh St.,Sydney NSW 2000 Australia•Phone:+61 2 9233 2520•Fax:+61 2 9233 2530•www.buccenergy.com•ABN:63 125 670 733 STATE OF ALASKA RECEIVED • ALAft OIL AND GAS CONSERVATION COMM, SION nr-r 2 X 7013 WELL COMPLETION OR RECOMPLETION REPORT AND LOC la.Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑ Suspended lb.Well CIasA01 20AAC 25105 20AAC 25 110 - Development ❑ ; Exploratory 0 - GINJ ❑ WINJ ❑ WAG ❑ WDSPL❑ No.of Completions: _ 1 Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5. Date Comp.,Susp.,or 12. Permit to Drill Number: Buccaneer Alaska Operations, LLC Aband.: 10/9/2013 J _\3 0 et\ 0. - 3.Address: 6. Date Spudded: 13.API Number: 952 Echo Ln-Suite 420, Houston,TX 77024 8/5/2013 50-133-20168-00-00 - 4a. Location of Well(Governmental Section): 7. Date TD Reached: 14.Well Name and Number: Surface: 1765'FNL& 1254'FWL Sec 33 6n 11w 4 9/11/2013 Kenai Loop#1-4 Top of Productive Horizon: 8. KB(ft above MSL): 113.3, 15. Field/Pool(s): 2450'FNL&2464'FWL Sec 33 6n 11w 4 GL(ft above MSL): -92.5 • Total Depth: 9. Plug Back Depth(MD+TVD): Wildcat 2450'FNL&2464'FWL Sec 33 6n 11w 4 •10,998'MD/10,771'TVD - 4b. Location of Well(State Base Plane Coordinates, NAD 27): 10.Total Depth(MD+TVD): 16. Property Designation: Surface: x- 279,736 y- 2,402,388 Zone- 4 . 11,396'MD/11,198'TVD• MHT 9300082 TPI: x- 280,976.67 y- 2,401,623.61 Zone- 4 11. SSSV Depth(MD+TVD): 17. Land Use Permit: Total Depth: x- 280,976.67 y- 2,401,623.61 Zone- 4 622'MD/TVD City of Kenai, Conditional use permit 18. Directional Survey: Yes ❑✓ No ❑ 19.Water Depth, if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) 0 21. Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: See Attached List NA 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 16" 84 N8OHC 0 138' 0 138' Driven NA Het, sR NA 10 3/4" 46.5 L-80 0 3,057' 0 3,051' 131/2" 986 sks Class G w/additives NA 7 5/8" 29.7 L-80 0 9,474' 0 9,277' 9 7/8" 1193 sks Class G w/additives NA 4 1/2" 12.6 L-80 9273 11,396' 9076' 11,198' 6 3/4" 390 sks Class G w/additives NA 24.Open to production or injection? Yes ❑ No E 25. TUBING RECORD If Yes, list each interval open(MD+TVD of Top and Bottom; Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): 2 7/8" 9,714' 9,714'MD/9,514'TVD OiVit�u.`°Li 26. ACID, FRACTURE,CEMENT SQUEEZE, ETC. tOria-lt Was hydraulic fracturing used during completion? Yes ❑ No ❑ . `El; DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 9870-9872 145 sks Class G w/additives 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): Flowing 10/6/13(well Test Only) - Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: 10/6/2013 2.00 Test Period -0 493.33 0 20/64 NA Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API (corr): Press. 2525 0 24-Hour Rate ---► 0 5,920 • 0 NA 28. CORE DATA Conventional Core(s)Acquired? Yes ❑ No❑✓ Sidewall Cores Acquired? Yes ❑ No E If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips, photographs and laboratory analytical results per 20 AAC 25.071. RBr; g: MAR 2 0 ..n, Form 10-407 Revised 10/2012 CONTINUED ON REVERSE e -•1 14.I`( 9J/Submit original only 7�, , ems, 7 t- (45- • • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ❑✓ Yes ❑ No If yes, list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form, if Permafrost-Top 0' 0' needed, and submit detailed test information per 20 AAC 25.071. Permafrost-Base 0' 0' 9792'-9816'MD Tyonek formation Beluga Formation Top 5606' 5581' Tyonek Formation Top 8348' 8153' Formation at total depth: Tyonek 11396' 11198' 31. List of Attachments: Wellbore Diagram, Directional Survey,Well Test Data&Log List 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Stephen L.Ward Email: sward@buccaneerenergy.com Printed Name: Stephen L.Ward Title: Operations Manager-Production Signature: Phone: 713-468-1678 Date: 10/23/2013 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion), so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced,showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift, Rod Pump, Hydraulic Pump, Submersible,Water Injection,Gas Injection,Shut-in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 10/2012 • Kenai Permit#: ADL 213-091 0 I i 1 ; i Loop 1-4 API#: 50-133-20168-00-00 Pad 1 Prop. Des: MHT 9300082 1765' FNL, 1254' FWL KB elevation: 112' (20'AGL) S33 T6N R11W S.M. Latitude: 651 13'27.89" r 11 7 r'j Longitude: 151° 27.893" �ik , t 1 -- ..„...._____ Spud: 8/5/2013 TD: 9/11/2013 1 11 Riq Released: 1 t Structural Pipe 16" N80HC 84# Top Bottom MD Surf 138' TVD Surf 138' t SCSSSV set at 622' Surface Casinq I`` Chem Inj.set at 1806' 10-3/4" L-80 45.5ppf Top Bottom MD 0' 3,057' ND 0' 3,051' 1 DV Collar @ 4499'MD N 4491'TVD Intermediate Casinq(Proposed) 7-5/8" L-80 29.7 ppf Top Bottom Max Inc 18.39 MD 0' 9,474' degrees ND 0' 9,277' \ ''\., Ilk* Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom \ % MD 9,273' 11396' TVD 9,076' 11198' Baker Flex Lok Liner Hanger F. 'A' g �� 1�� Tubing w/ZXP Pkr and PBR I r /, 2 7/8" L-80 6.5 ppf EUE Mod top @ 9273'MD;9076'TVD - Top Bottom fI MD 0' 9,714' ND 0' 9,514' j;, Ultra Pak packer w/ 1 ' sealbore extension @ ' 9714'MD/9514'TVD"X" profile @ 9728'MD/9527' TVD f3-1/8"TCP gun ass'y btm CI @ 9820'MD(total ass'y Perforations: length to be dropped is 9792-9816'MD 0 59') i Cmt Sqz perfs. 0 72' MD A & q TD I PBTD 11396'MD 10998'MD 11,198'ND 10771'ND Well Name&Number: Kenai Loop#4 Lease: Kenai Loop County or Parish: Kenai Penisula Borough State: Alaska Country: USA Perforations(MD): Perf(TVD): Angle @KOP and Depth Angle @ Perfs KOP TVD. Date Completed. RKB. 20' Prepared By Stephen Ward Last Revision Date October 7,2013 L • • w 0 Q a m • mm 0. • O O C NN C m _ 00 O O ct 0 c N- E m a) 2 , 00E m d U U O) C O O N C a) 3 Q) o N O o (n N O N a 0ii O EL 0 LL V O m o a it F F d E m 2 W C 2 c ai � ` '45. 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C O M V O < M V (0 n O M V O 7 M V a7 E O O O O N N N N M M M M M O O O O O E EONNNNNN N N N N N N N N N N p O O O O O O O O i= --g M co FAWN 41) ADVANTAWE Final Survey Listing BAKER HUGHES • LITTEQ Operator Buccaneer Alaska Operations, LLC Fields Kenai Loop API No 50133206180000 Well Kenai Loop #1-4 Wellbore Kenai Loop #1-4 Orig Hole Rig Glacier 1 lob 5675267 Well Origin Latitude 60.57 deg Longitude -151.22 deg North Reference True Drill Depth Zero Rig Floor Vertical Datum is Mean Sea Level Vertical Datum to DDZ 113.30 ft Vertical Section North 0.00 ft Vertical Section East 0.00 ft Vertical Section Azimuth 119.50 deg Vertical Section Depth 0.00 ft Grid Convergence 0.00 deg Magnetic Declination 17.20 deg Total Correction 17.20 deg TVD Calculation Method Minimum Curvature D-Raw Calculation Magcorrl Local Magnetic Field 55437 nT Local Magnetic Dip Angle 73.53 deg Local Gravity Field 9.820 m/s^2 Tie MD In ft I Incl deg I Azim deg North I Easftt ( T ft D I VS ITemdegFperature CRS EN Ideg/OOftDLS ldeg/1100ftd 1Turn deg/100ft U 20.80 0.00 0.00 0.00 0.00 20.80 0.00 242.47 0.40 332.90 0.69 -0.35 242.47 -0.65 82.4 221.67 0.18 0.18 -12.23 303.23 0.14 321.91 0.94 -0.49 303.23 -0.89 82.4 60.76 0.43 -0.43 -18.09 362.76 0.26 331.57 1.11 -0.60 362.76 -1.07 85.1 59.53 0.21 0.20 16.23 422.57 0.14 358.02 1.30 -0.67 422.57 -1.23 85.1 59.81 0.25 -0.20 44.22 484.31 0.11 259.46 1.37 -0.73 484.31 -1.31 85.1 61.74 0.31 -0.05 -159.64 546.66 0.19 15.26 1.46 -0.76 546.66 -1.38 85.1 62.35 0.41 0.13 185.73 609.33 0.09 14.09 1.61 -0.72 609.33 -1.42 85.1 62.67 0.16 -0.16 -1.87 670.50 0.17 9.59 1.74 -0.70 670.50 -1.46 87.8 61.17 0.13 0.13 -7.36 729.85 0.36 75.90 1.87 -0.50 729.85 -1.36 87.8 59.35 0.56 0.32 111.73 793.27 0.34 71.55 1.98 -0.13 793.26 -1.09 87.8 63.42 0.05 -0.03 -6.86 856.09 0.34 93.76 2.03 0.23 856.08 -0.80 87.8 62.82 0.21 0.00 35.35 918.44 0.46 93.11 2.00 0.67 918.43 -0.41 87.8 62.35 0.19 0.19 -1.04 982.63 0.59 86.27 2.01 1.25 982.62 0.10 87.8 64.19 0.22 0.20 -10.66 1045.01 1.25 76.23 2.19 2.24 1044.99 0.87 87.8 62.38 1.09 1.06 -16.09 1108.38 1.44 74.01 2.58 3.67 1108.34 1.93 87.8 63.37 0.31 0.30 -3.50 1171.78 2.09 80.66 2.98 5.58 1171.71 3.39 87.8 63.40 1.07 1.03 10.49 1233.65 2.24 82.76 3.32 7.89 1233.54 5.23 90.5 61.87 0.27 0.24 3.39 1297.84 2.75 94.37 3.36 10.67 1297.67 7.63 90.5 64.19 1.11 0.79 18.09 1360.84 2.76 91.34 3.21 13.69 1360.60 10.34 90.5 63.00 0.23 0.02 -4.81 1424.53 3.00 88.54 3.22 16.89 1424.20 13.12 90.5 63.69 0.44 0.38 -4.40 1487.55 3.77 91.18 3.22 20.61 1487.11 16.36 90.5 63.02 1.25 1.22 4.19 1550.41 4.44 90.66 3.15 25.11 1549.81 20.31 90.5 62.86 1.07 1.07 -0.83 1613.94 5.16 92.87 2.97 30.43 1613.12 25.02 90.5 63.53 1.17 1.13 3.48 1676.88 5.35 93.91 2.63 36.18 1675.80 30.19 93.2 62.94 0.34 0.30 1.65 1739.87 5.31 95.01 2.18 42.01 1738.51 35.49 90.5 62.99 0.17 -0.06 1.75 1802.85 5.43 96.30 1.60 47.88 1801.22 40.88 90.5 62.98 0.27 0.19 2.05 1866.80 5.47 96.69 0.91 53.91 1864.88 46.48 93.2 63.95 0.09 0.06 0.61 1930.05 5.38 97.50 0.17 59.85 1927.84 52.00 93.2 63.25 0.19 -0.14 1.28 1993.33 4.56 93.47 -0.37 65.30 1990.89 57.01 90.5 63.28 1.41 -1.30 -6.37 2055.22 4.09 90.56 -0.54 69.96 2052.60 61.16 93.2 61.89 0.84 -0.76 -4.70 2117.65 3.20 86.56 -0.46 73.93 2114.90 64.57 93.2 62.43 1.48 -1.43 -6.41 2181.04 2.69 83.15 -0.17 77.17 2178.21 67.25 93.2 63.39 0.85 -0.80 -5.38 2243.70 2.60 81.28 0.22 80.03 2240.80 69.55 93.2 62.66 0.20 -0.14 -2.98 2306.78 2.19 85.67 0.53 82.65 2303.83 71.68 96.0 63.08 0.71 -0.65 6.96 2369.78 2.03 85.32 0.71 84.96 2366.78 73.60 96.0 63.00 0.25 -0.25 -0.56 2432.75 1.26 88.68 0.81 86.77 2429.73 75.12 96.0 62.97 1.23 -1.22 5.34 2496.19 0.37 95.52 0.81 87.67 2493.16 75.90 96.0 63.44 1.41 -1.40 10.78 2559.23 0.09 80.30 0.80 87.92 2556.20 76.13 96.0 63.04 0.45 -0.44 -24.14 2622.96 0.18 296.03 0.85 87.88 2619.93 76.07 96.0 63.73 0.41 0.14 -226.38 2686.27 0.14 258.78 0.88 87.71 2683.24 75.91 96.0 63.31 0.17 -0.06 -58.84 2748.50 0.25 277.96 0.88 87.50 2745.47 75.72 96.0 62.23 0.20 0.18 30.82 2812.36 0.16 247.07 0.87 87.28 2809.33 75.54 96.0 63.86 0.22 -0.14 -48.37 2875.23 0.15 248.03 0.80 87.13 2872.20 75.44 96.0 62.87 0.02 -0.02 1.53 2936.91 0.21 342.28 0.88 87.02 2933.88 75.30 96.0 61.68 0.43 0.10 152.80 2970.04 0.14 285.75 0.95 86.96 2967.01 75.22 96.0 33.13 0.53 -0.21 -170.61 3170.26 0.54 336.83 1.88 86.35 3167.22 74.23 79.7 200.22 0.23 0.20 25.51 3233.50 0.65 336.38 2.49 86.09 3230.46 73.71 82.4 63.24 0.17 0.17 -0.71 3297.49 0.54 336.97 3.10 85.83 3294.45 73.18 82.4 63.99 0.17 -0.17 0.92 3362.37 0.52 335.59 3.65 85.59 3359.32 72.70 85.1 64.88 0.04 -0.03 -2.13 Page 1 • ram ADVANTJE Final Survey Listing BN ER INTEQ Operator Buccaneer Alaska Operations, LLC Fields Kenai Loop API No 50133206180000 Well Kenai Loop #1-4 Wellbore Kenai Loop #1-4 Orig Hole Rig Glacier 1 Job 5675267 Tie MD In ft I Incl deg I Azim deg North I Eftt I TVD I Vfg ITemdegFperature CRS EN Ideg/100ftDLS ldeg/100ftBuild lTurn deg/100ft 3422.04 0.52 333.02 4.13 85.35 3418.99 72.25 85.1 59.67 0.04 0.00 -4.31 3483.93 0.59 329.22 4.66 85.06 3480.88 71.74 85.1 61.89 0.13 0.11 -6.14 3546.65 0.50 318.94 5.14 84.72 3543.60 71.20 87.8 62.72 0.21 -0.14 -16.39 3610.30 0.50 316.69 5.55 84.35 3607.24 70.68 87.8 63.65 0.03 0.00 -3.53 3672.40 0.57 314.13 5.97 83.94 3669.34 70.12 87.8 62.10 0.12 0.11 -4.12 3735.13 0.51 322.92 6.41 83.55 3732.07 69.56 87.8 62.73 0.16 -0.10 14.01 3797.53 0.44 315.67 6.80 83.21 3794.47 69.07 87.8 62.40 0.15 -0.11 -11.62 3861.00 0.47 310.60 7.14 82.84 3857.93 68.59 90.5 63.47 0.08 0.05 -7.99 3923.76 0.68 179.03 6.94 82.65 3920.69 68.52 90.5 62.76 1.68 0.33 -209.64 3986.93 2.51 156.68 5.29 83.21 3983.84 69.81 93.2 63.17 3.01 2.90 -35.38 4051.35 4.04 144.32 2.15 85.09 4048.15 73.00 93.2 64.42 2.60 2.37 -19.19 4113.11 5.35 144.45 -1.96 88.03 4109.70 77.58 96.0 61.76 2.12 2.12 0.21 4175.19 6.54 142.04 -7.10 91.89 4171.45 83.47 96.0 62.08 1.96 1.92 -3.88 4239.02 7.87 133.84 -12.99 97.28 4234.77 91.06 96.0 63.83 2.63 2.08 -12.85 4302.01 9.19 129.61 -19.19 104.26 4297.07 100.19 98.7 62.99 2.32 2.10 -6.72 4365.02 10.60 129.10 -26.05 112.64 4359.14 110.86 98.7 63.01 2.24 2.24 -0.81 4427.96 11.12 128.32 -33.46 121.89 4420.95 122.57 98.7 62.94 0.86 0.83 -1.24 4491.03 11.71 123.90 -40.80 131.98 4482.77 134.96 101.4 63.07 1.67 0.94 -7.01 4553.71 12.63 122.30 -48.01 143.05 4544.04 148.15 101.4 62.68 1.56 1.47 -2.55 4617.60 13.26 121.68 -55.59 155.19 4606.31 162.45 96.0 63.89 1.01 0.99 -0.97 4681.99 14.50 120.75 -63.60 168.40 4668.82 177.89 96.0 64.39 1.96 1.93 -1.44 4743.17 15.21 120.24 -71.55 181.92 4727.95 193.57 98.7 61.18 1.18 1.16 -0.83 4806.01 17.67 121.10 -80.63 197.21 4788.22 211.35 98.7 62.84 3.93 3.91 1.37 4869.05 18.37 120.68 -90.64 213.94 4848.17 230.84 98.7 63.04 1.13 1.11 -0.67 4932.37 18.36 121.12 -100.89 231.06 4908.26 250.79 98.7 63.32 0.22 -0.02 0.69 4995.28 18.60 120.70 -111.13 248.17 4967.93 270.72 101.4 62.91 0.44 0.38 -0.67 5057.44 18.65 120.95 -121.30 265.22 5026.84 290.57 101.4 62.16 0.15 0.08 0.40 5136.49 18.73 120.35 -134.22 287.01 5101.71 315.89 101.4 79.05 0.26 0.10 -0.76 5185.69 18.66 121.59 -142.33 300.53 5148.32 331.66 101.4 49.20 0.82 -0.14 2.52 5248.98 18.70 119.58 -152.64 317.98 5208.27 351.92 104.1 63.29 1.02 0.06 -3.18 5311.56 18.63 118.71 -162.40 335.47 5267.56 371.95 104.1 62.58 0.46 -0.11 -1.39 5374.71 18.75 119.27 -172.20 353.17 5327.38 392.18 106.8 63.15 0.34 0.19 0.89 5438.31 18.80 119.18 -182.20 371.04 5387.60 412.65 106.8 63.60 0.09 0.08 -0.14 5501.20 18.29 119.80 -192.04 388.45 5447.22 432.65 106.8 62.89 0.87 -0.81 0.99 5563.33 18.11 120.17 -201.74 405.25 5506.24 452.06 106.8 62.13 0.34 -0.29 0.60 5626.82 18.13 120.51 -211.72 422.30 5566.58 471.80 106.8 63.49 0.17 0.03 0.54 5690.98 18.39 120.72 -221.95 439.60 5627.52 491.90 106.8 64.16 0.42 0.41 0.33 5753.32 18.57 120.90 -232.08 456.57 5686.64 511.66 106.8 62.34 0.30 0.29 0.29 5817.39 18.78 121.38 -242.68 474.13 5747.33 532.16 104.1 64.07 0.41 0.33 0.75 5879.39 19,07 121.38 -253.16 491.29 5805.99 552.26 104.1 62.00 0.47 0.47 0.00 5942.04 18.58 120.08 -263.49 508.67 5865.28 572.47 106.8 62.65 1.03 -0.78 -2.08 6004.85 17.95 120.29 -273.38 525.69 5924.93 592.15 109.5 62.81 1.01 -1.00 0.33 6067.84 17.86 120.94 -283.25 542.35 5984.87 611.52 112.2 62.99 0.35 -0.14 1.03 6131.08 18.06 121.07 -293.29 559.07 6045.03 631.01 112.2 63.24 0.32 0.32 0.21 6193.27 18.13 121.79 -303.36 575.55 6104.14 650.31 112.2 62.19 0.38 0.11 1.16 6255.94 18.39 121.46 -313.66 592.27 6163.66 669.94 114.9 62.67 0.45 0.41 -0.53 6319.66 18.16 120.95 -324.01 609.36 6224.16 689.91 114.9 63.72 0.44 -0.36 -0.80 6382.44 17.95 121.31 -334.07 626.01 6283.85 709.36 114.9 62.78 0.38 -0.33 0.57 6445.38 18.15 121.83 -344.28 642.63 6343.69 728.85 114.9 62.94 0.41 0.32 0.83 6507.17 18.15 121.51 -354.39 659.01 6402.41 748.08 117.6 61.79 0.16 0.00 -0.52 6571.84 18.25 122.06 -365.03 676.18 6463.84 768.26 117.6 64.67 0.31 0.15 0.85 6634.21 18.08 120.91 -375.18 692.76 6523.11 787.70 117.6 62.37 0.64 -0.27 -1.84 6694.56 17.95 119.65 -384.59 708.88 6580.50 806.36 117.6 60.35 0.68 -0.22 -2.09 6763.29 18.05 120.08 -395.17 727.29 6645.86 827.60 112.2 68.73 0.24 0.15 0.63 6825.01 18.14 120.55 -404.85 743.84 6704.53 846.76 114.9 61.72 0.28 0.15 0.76 6887.69 18.30 120.30 -414.77 760.74 6764.07 866.36 114.9 62.68 0.28 0.26 -0.40 6950.55 17.21 118.60 -424.20 777.43 6823.93 885.52 112.2 62.86 1.92 -1.73 -2.70 7015.53 17.04 118.24 -433.31 794.25 6886.03 904.66 114.9 64.98 0.31 -0.26 -0.55 7077.79 17.17 118.72 -442.04 810.35 6945.54 922.96 114.9 62.26 0.31 0.21 0.77 7140.62 17.22 119.24 -451.04 826.60 7005.56 941.54 117.6 62.83 0.26 0.08 0.83 Page 2 • Wag • ADVANT Final Survey Listing BAKER HUGHES • INTEQ Operator Buccaneer Alaska Operations, LLC Fields Kenai Loop API No 50133206180000 Well Kenai Loop #1-4 Wellbore Kenai Loop #1-4 Orig Hole Rig Glacier 1 Job 5675267 Tie In ft MD I Incl deg I Azim deg North I EEftt I Tfft U I VftS ITemdegFperature CRS EN Ideg/100ft DLS ldeg/100ftBuild lTurn deg/100ft 7204.70 17.39 118.87 -460.30 843.26 7066.74 960.60 120.3 64.08 0.32 0.27 -0.58 7268.09 17.60 119.48 -469.59 859.90 7127.20 979.66 120.3 63.39 0.44 0.33 0.96 7329.06 17.73 119.74 -478.73 875.98 7185.29 998.16 120.3 60.97 0.25 0.21 0.43 7393.22 17.96 119.80 -488.49 893.05 7246.37 1017.82 120.3 64.16 0.36 0.36 0.09 7455.28 18.05 120.30 -498.10 909.66 7305.39 1037.00 123.0 62.06 0.29 0.15 0.81 7518.62 18.24 120.44 -508.07 926.67 7365.58 1056.72 106.8 63.34 0.31 0.30 0.22 7582.36 18.53 120.55 -518.27 944.00 7426.07 1076.82 112.2 63.74 0.46 0.45 0.17 7646.10 18.53 120.83 -528.61 961.42 7486.50 1097.07 114.9 63.74 0.14 0.00 0.44 7708.90 18.65 120.55 -538.83 978.63 7546.02 1117.09 117.6 62.80 0.24 0.19 -0.45 7771.42 18.45 120.57 -548.94 995.76 7605.29 1136.97 117.6 62.52 0.32 -0.32 0.03 7834.08 18.21 120.20 -558.91 1012.76 7664.78 1156.68 120.3 62.66 0.43 -0.38 -0.59 7897.80 18.26 119.98 -568.90 1030.01 7725.30 1176.62 123.0 63.72 0.13 D.08 -0.35 7959.98 17.15 120.04 -578.36 1046.39 7784.53 1195.53 123.0 62.18 1.79 -1.79 0.10 8023.24 16.23 119.73 -587.42 1062.14 7845.12 1213.69 125.7 63.26 1.46 -1.45 -0.49 8085.69 15.87 120.37 -596.06 1077.08 7905.14 1230.96 128.4 62.45 0.64 -0.58 1.02 8148.83 15.77 120.04 -604.72 1091.96 7965.89 1248.17 125.7 63.14 0.21 -0.16 -0.52 8213.54 15.30 118.76 -613.23 1107.05 8028.23 1265.50 128.4 64.71 0.90 -0.73 -1.98 8276.42 14.43 119.38 -621.06 1121.15 8089.01 1281.63 131.1 62.88 1.41 -1.38 0.99 8340.19 13.31 120.65 -628.71 1134.39 8150.92 1296.92 133.8 63.77 1.82 -1.76 1.99 8402.72 12.38 119.47 -635.67 1146.42 8211.88 1310.82 133.8 62.53 1.55 -1.49 -1.89 8466.22 11.49 120.32 -642.21 1157.81 8274.01 1323.95 133.8 63.50 1.43 -1.40 1.34 8528.42 10.40 121.61 -648.29 1167.94 8335.08 1335.75 133.8 62.20 1.80 -1.75 2.07 8591.57 9.24 122.75 -654.02 1177.06 8397.30 1346.51 131.1 63.15 1.86 -1.84 1.81 8654.61 8.03 123.56 -659.19 1184.98 8459.62 1355.95 133.8 63.04 1.93 -1.92 1.28 8716.08 6.80 122.88 -663.54 1191.62 8520.58 1363.87 133.8 61.47 2.01 -2.00 -1.11 8780.73 5.80 122.71 -667.38 1197.58 8584.84 1370.95 131.1 64.65 1.55 -1.55 -0.26 8843.54 4.61 123.58 -670.49 1202.35 8647.39 1376.64 133.8 62.81 1.90 -1.89 1.39 8907.74 4.37 125.16 -673.33 1206.50 8711.39 1381.65 133.8 64.20 0.42 -0.37 2.46 8970.67 4.27 132.97 -676.30 1210.18 8774.14 1386.31 133.8 62.93 0.95 -0.16 12.41 9033.98 3.87 138.35 -679.51 1213.32 8837.29 1390.63 136.5 63.31 0.87 -0.63 8.50 9097.49 3.45 139.50 -682.56 1215.99 8900.68 1394.45 136.5 63.51 0.67 -0.66 1.81 9159.99 2.39 136.58 -684.94 1218.10 8963.09 1397.46 136.5 62.50 1.71 -1.70 -4.67 9223.05 1.87 129.98 -686.55 1219.80 9026.11 1399.73 139.2 63.06 0.91 -0.82 -10.47 9284.52 1.59 130.93 -687.76 1221.21 9087.55 1401.55 141.9 61.47 0.46 -0.46 1.55 9347.36 1.53 130.31 -688.87 1222.51 9150.37 1403.23 141.9 62.84 0.10 -0.10 -0.99 9411.67 1.61 133.00 -690.04 1223.82 9214.65 1404.95 141.9 64.31 0.17 0.12 4.18 9473.70 1.58 132.55 -691.22 1225.09 9276.66 1406.63 141.9 62.03 0.05 -0.05 -0.73 9493.06 1.64 130.50 -691.58 1225.50 9296.01 1407.17 141.9 19.36 0.43 0.31 -10.59 9545.07 1.78 138.02 -692.66 1226.60 9348.00 1408.66 123.0 52.01 0.51 0.27 14.46 9607.56 2.12 142.94 -694.30 1227.95 9410.45 1410.64 125.7 62.49 0.61 0.54 7.87 9670.90 2.18 140.64 -696.17 1229.42 9473.75 1412.84 125.7 63.34 0.17 0.09 -3.63 9733.77 2.32 140.25 -698.07 1230.99 9536.57 1415.15 125.7 62.87 0.22 0.22 -0.62 9796.31 1.20 130.32 -699.47 1232.30 9599.08 1416.97 128.4 62.54 1.85 -1.79 -15.88 9859.04 1.43 131.30 -700.41 1233.39 9661.80 1418.39 131.1 62.73 0.37 0.37 1.56 9923.41 1.59 131.99 -701.54 1234.66 9726.14 1420.04 133.8 64.37 0.25 0.25 1.07 9985.74 1.61 135.89 -702.75 1235.91 9788.44 1421.73 131.1 62.33 0.18 0.03 6.26 10049.86 1.27 143.31 -703.96 1236.96 9852.55 1423.24 133.8 64.12 0.60 -0.53 11.57 10112.81 1.40 145.80 -705.16 1237.81 9915.48 1424.57 136.5 62.95 0.23 0.21 3.96 10176.37 1.73 152.24 -706.65 1238.69 9979.01 1426.07 139.2 63.56 0.59 0.52 10.13 10240.34 1.94 150.56 -708.45 1239.67 10042.95 1427.81 139.2 63.97 0.34 0.33 -2.63 10303.91 1.72 144.51 -710.16 1240.76 10106.49 1429.60 141.9 63.57 0.46 -0.35 -9.52 10366.69 1.75 148.34 -711.74 1241.81 10169.24 1431.29 141.9 62.78 0.19 0.05 6.10 10430.70 1.80 145.85 -713.41 1242.88 10233.22 1433.05 141.9 64.01 0.14 0.08 -3.89 10494.04 1.48 149.58 -714.94 1243.86 10296.54 1434.65 141.9 63.34 0.53 -0.51 5.89 10557.76 0.71 177.87 -716.04 1244.29 10360.24 1435.57 147.3 63.72 1.44 -1.21 44.40 10620.20 0.95 162.60 -716.92 1244.46 10422.68 1436.15 147.3 62.44 0.52 0.38 -24.45 10684.09 0.95 168.74 -717.95 1244.72 10486.56 1436.88 147.3 63.89 0.16 0.00 9.61 10746.48 1.39 168.69 -719.20 1244.97 10548.93 1437.71 150.0 62.39 0.71 0.71 -0.08 10809.54 1.63 165.27 -720.81 1245.35 10611.97 1438.84 150.0 63.06 0.41 0.38 -5.42 10873.18 1.70 157.95 -722.56 1245.93 10675.58 1440.21 150.0 63.64 0.35 0.11 -11.50 Page 3 EbV KER • ADVANTRE Final Survey Listing Hlu6IEs INTEQ Operator Buccaneer Alaska Operations, LLC Fields Kenai Loop API No 50133206180000 Well Kenai Loop #1-4 Wellbore Kenai Loop #1-4 Orig Hole Rig Glacier 1 Job 5675267 Tie MD In ft I Incl deg I Azim deg North ( Efftst I TVD I vft8 ITemde9Fture CRSR EN Ideg/100ftDLS ldeg/1100ftd 1Turn deg/100ft 10937.73 2.08 163.72 -724.57 1246.62 10740.10 1441.80 150.0 64.55 0.66 0.59 8.94 11000.06 2.00 160.32 -726.68 1247.30 10802.39 1443.43 150.0 62.33 0.23 -0.13 -5.45 11062.52 2.12 157.15 -728.78 1248.12 10864.81 1445.17 152.7 62.46 0.26 0.19 -5.08 11125.76 2.04 155.67 -730.88 1249.04 10928.00 1447.01 152.7 63.24 0.15 -0.13 -2.34 11190.28 2.38 151.99 -733.11 1250.14 10992.48 1449.06 155.4 64.52 0.57 0.53 -5.70 11251.77 2.46 153.37 -735.42 1251.33 11053.91 1451.24 155.4 61.49 0.16 0.13 2.24 11316.55 2.52 149.44 -737.88 1252.68 11118.63 1453.62 155.4 64.78 0.28 0.09 -6.07 11338.77 2.71 151.07 -738.76 1253.18 11140.84 1454.50 152.7 22.22 0.92 0.85 7.33 Projection to TD 11396.00 2.71 151.07 -741.13 1254.49 11198.00 1456.80 57.23 0.00 0.00 0.00 Tie Column Legend: I - interpolated tie-point, S - survey station, U - user-defined, T- Surface Page 4 . f • f KL#1-4 2" MD MEM_QUAD 305-11396 KL#1-4 2"TVD MEM_QUAD 305-11396 KL#1-4 5" MD MEM_QUAD 305-11396 KL#1-4 5"ND MEM_QUAD 305-11396 KL#1-4 ANNUAL PRESSURE LOG KL#1-4 CNL-GR KL#1-4 CBL SQUEEZE 4.5" LINER KL#1-4 CBL 4.5" LINER KL#1-4 CBL 7 5/8" CASING KL#1-4 LRES200 LWD KL#1-4 FORMATION LOG KL#1-4 LWD COMBO LOG KL#1-4 GAS RATIO LOG KL#1-4 DRILLING DYNAMICS 111 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday, October 24, 2013 11:23 AM To: 'Craig Rang' Subject: RE: Buccaneer KL#4 - prep well for production construction (PTD 213-091) Craig, Monitoring surface pressure on KL 1-4 is reasonable and is approved. Getting more interference data with existing wells in the area is a good idea. Where are you tying in the SPYDR gauge on tree? Wing and SSV shut ? Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Craig Rang [mailto:crang@al_I: ricanoilfield.c ] Sent: Thursday, October 24, 2013 11:11 AM To: Schwartz, Guy L(DOA) Subject: RE: Buccaneer KL#4 - prep well for production construction (PTD 213-091) Guy: thanks for the direction. One last request. Buccaneer is trying to monitor reservoir pressure at surface by means of a Spyder gauge while they produce the other two wells. The request is to leave the SSSV open with the back pressure valve removed and monitor reservoir pressure on the KL#4 well. No production from this well. Approval requested. Thanks, Craig Rang From: Schwartz, Guy L (DOA) [ 1 I}r,°n1 1v crhwartz@alaska.gov] Sent: Thursday, October 24, 2013 10:57 AM To: Craig Rang; Steve Ward Cc: Roby, David S (DOA) Subject: RE: Buccaneer KL#4 - prep well for production construction (PTD 213-091) Craig, As we discussed on phone ...you may proceed with flow line hook-up to the well. The AOGCC doesn't regulate that part of the well completion. You may not flow Kenai Loop#1-4 until further notice from the Commission however. Leave well SI with SSSV closed and BPV installed. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office 1 • ! From: Craig Rang [mailto:crang(aallamericanoilfield.cohi] Sent: Wednesday, October 23, 2013 12:53 PM To: Schwartz, Guy L(DOA); Steve Ward Subject: Buccaneer KL#4 - prep well for production construction Guy: can you give me some direction on prepping the well for production hook—up. The drilling rig is off the well and the production tree is installed. The BPV needs to be pulled and the X plug with equalizing prong pulled. Do we need to send through a 10-403 for prepping the well for hook up. No production will be done until the approval is given. Tentatively have scheduled the work for Friday. Regards, Craig Rang 2 • 1111 Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Thursday, October 24, 2013 10:57 AM To: 'Craig Rang'; Steve Ward Cc: 'Roby, David S (DOA) (dave.roby@alaska.gov)' Subject: RE: Buccaneer KL#4 - prep well for production construction (PTD 213-091) Craig, As we discussed on phone ... you may proceed with flow line hook-up to the well. The AOGCC doesn't regulate that part of the well completion. You may not flow Kenai Loop#1-4 until further notice from the Commission however. Leave well SI with SSSV closed and BPV installed. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Craig Rang [ ] Sent: Wednesday, October 23, 2013 12:53 PM To: Schwartz, Guy L (DOA); Steve Ward Subject: Buccaneer KL#4 - prep well for production construction Guy: can you give me some direction on prepping the well for production hook—up. The drilling rig is off the well and the production tree is installed. The BPV needs to be pulled and the X plug with equalizing prong pulled. Do we need to send through a 10-403 for prepping the well for hook up. No production will be done until the approval is given. Tentatively have scheduled the work for Friday. Regards, Craig Rang 1 V OF 7'44,\\V/j - THE STATE Alaska Oil and Gas 1 LAS GOVERNOR SEAN PARNELL 333 West Seventh Avenue OF P Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 October 11, 2013 CERTIFIED MAIL— RETURN RECEIPT REQUESTED 7012 3050 0001 4812 5566 Mr. Mark Landt Landman Buccaneer Alaska Operations, LLC. 215 Fidalgo Avenue, Suite 100 Kenai, Alaska 99611 Re: Notice of Violation—Defeated Gas Detection Equipment Glacier Drilling Rig #1 Kenai Loop 1-4 (PTD 2130910) Dear Mr. Landt: On September 26, 2013 an Alaska Oil and Gas Conservation Commission (AOGCC) Inspector witnessed the weekly performance test of secondary well control equipment on the Glacier Drilling Rig #1 (Glacier 1) being operated by Buccaneer Alaskan Operations LLC (Buccaneer). Inspection of the blowout prevention equipment in conjunction with the performance test revealed that gas detection alarms were defeated. A copy of the AOGCC Inspection report is attached. The facts reported by the AOGCC Inspector indicate a failure to maintain operable gas detection equipment which would be a violation of State regulations. AOGCC regulation 20 AAC 25.066 establishes minimum requirements for gas detection on drilling and workover rigs. Included is the requirement to maintain separate and distinct visual and audible alarms. The AOGCC Inspector found the audible hydrogen sulfide and methane gas alarms on the rig floor to be defeated, and upon having the "acknowledge" button switched to the "on"position, determined that these alarms were still not functioning as required. Within fourteen days of receipt of this letter (next business day if the due date falls on a weekend), Buccaneer is requested to provide AOGCC with a written response describing the circumstances leading to the defeated gas detection audible alarms on the rig floor, when the alarms were defeated, and what steps have been or will be taken to prevent recurrence on Buccaneer operated rigs in Alaska. • Mr.Mark Landt 1 • October 11,2013 Page 2 of 2 The AOGCC reserves the right to pursue enforcement action in connection with the defeated gas detection equipment on Glacier 1 as provided by 20 AAC 25.535. Questions regarding this letter should be directed to Jim Regg at 907-793-1236. Sincerely, Cathy P Foerster Chair, ommissioner Attachment cc: AOGCC Inspectors RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a),within 20 days after written notice of the entry of this order or decision,or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed,then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration,upon denial,this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction,in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration,this order or decision does not become final. Rather,the order or decision on reconsideration will be the FINAL order or decision of the AOGCC,and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails,OR 30 days if the AOGCC otherwise distributes,the order or decision on reconsideration. As provided in AS 31.05.080(b),"[t]he questions reviewed on appeal are limited to the questions presented to the AOGCC by the application for reconsideration." In computing a period of time above,the date of the event or default after which the designated period begins to run is not included in the period;the last day of the period is included,unless it falls on a weekend or state holiday,in which event the period runs until 5:00 p.m.on the next day that does not fall on a weekend or state holiday. • 0 STATE OF ALASKA Reviewed By: OIL AND GAS CONSERVATION COMMISSION P.I.Supry ROPE Test Report Comm 1 Contractor/Rig No.: All American Oil GDl PTD#: 2130910 DATE: 9/26/2013 Inspector Jeff Turkington Insp Source I Operator: BUCCANEER ALASKAN OPERATIONS Operator Rep: Joe Steiner Rig Rep: Morrill/Larango Inspector Type Operation: EXPL I Rams: Annular: Valves: Inspection No: bopJAT13092916401 I Type Test: WKLY I Test Pressure: 250/5000 250/2500 250/5000 Related Insp No: TEST DATA MISC.INSPECTIONS: MUD SYSTEM: ACCUMULATOR SYSTEM: P/F Visual Alarm Time/Pressure P/F Location Gen.: P Trip Tank P P System Pressure 3000 P Housekeeping: P Pit Level Indicators _P P Pressure After Closure 1500 P PTD On Location P Flow Indicator P P 200 PSI Attained 44 P tanding Order Posted P Meth Gas Detector - P FP_ Full Pressure Attained -__ 179 P Well Sign P H2S Gas Detector P FP Blind Switch Covers: All P Drl.Rig P MS Misc NA NA 1 Nitgn.Bottles(avg): 4 A 2175 P Hazard Sec. P ACC Misc 0 NA Misc NA 1 i FLOOR SAFTY VALVES: t BOP STACK: i CHOKE MANIFOLD: Quantity P/F Quantity Size P/F I Quantity P/F Upper Kelly 1 P Stripper 0 none NA No.Valves 12 P Lower Kelly 1 P Annular Preventer 1 13 5/8 P Manual Chokes 1 P Ball Type _ 1 P #1 Rams 1 2 7/8 x 5 F Hydraulic Chokes _ 1 P Inside BOP 1 P #2 Rams 1 Bind P CH Misc 0 NA FSV Misc 0 NA #3 Rams 1 4 Ram F #4 Rams 0 none NA -----_------________-__ #5 Rams 0 none NA INSIDE REEL VALVES: #6 Rams 0 none NA (Valid for Coil Rigs Only) Choke Ln.Valves 1 3 1/8 P Quantity P/F HCR Valves 1 3 1/8 P Inside Reel Valves 0 NA Kill Line Valves 3 2 1/16 P Check Valve 0 none NA BOP Misc 0 none NA Number of Failures: 4 Test Results Test Time 45 Remarks: Rig floor H2S and combustible gas audible acknowledge switch in"off'position.Switched on,but still no audible alarms.Fiddled with switch and it seemed to have a loose connection(I suggested they remove the switch altogether).BOP:Upper rams failed, passed LP test but failed HP.Broke Allen screw receiver nut while changing rams.Bottom rams also failed.Changed out one side of rams but one bolt in opposite side was stuck,dropped socket in cellar,broke hammer wrench...by about 10 PM I gave up waiting on repairs.They decided to call in Vetco in the morning and retest.I told them I was booked so couldn't witness retests of upper and lower rams(other tests scheduled in the AM). • STATE OF ALASKA s E•KA OIL AND GAS CONSERVATION CCOSSION GAS WELL OPEN FLOW POTENTIAL TEST REPORT la.Test: El Initial ❑ Annual ❑ Special lb.Type Test: ❑ Stabilized ❑ Non Stabilized 0 Multipoint ❑ Constant Time El lsochronal ❑ Other: 2.Operator Name: 5. Date Completed: 11. Permit to Drill Number: Buccaneer Alaska Operations LLC N O V 2 9 2013 10/9/2013 213-0091 3.Address: 6. Date TD Reached: 12.API Number: 952 Echo Lane-Suite 420, Houston,TX 77024 A ff ,,r, September 11,2013 50- 133-20168-00-00 4a. Location of Well(Governmental Section): 7. KB Elevation above MSL(feet): 13.Well Name and Number: Surface: 1765'FNL& 1254'FWL Sec 33 6n 11 w 4 113.3 KL 1-4 Top of Productive Horizon: 8. Plug Back Depth(MD+TVD): 14. Field/Pool(s): 2450'FNL&2464'FWL Sec 33 6n 11w 4 10,998'MD/10,771'TVD Wildcat Total Depth: 9.Total Depth(MD+TVD): 2450'FNL&2464'FWL Sec 33 6n 11w 4 11,396'MD/11,198'TVD 4b. Location of Well(State Base Plane Coordinates NAD 27): 10. Land Use Permit: 15. Property Designation: Surface: x- 279,736 y- 2,402,388 Zone- 4 City of Kenai,Conditional use permit MHT 93000082 TPI: x- 280,976.67 y- 2,401,623.61 Zone- 4 16.Type of Completion(Describe): Total Depth: x- 280,976.67 y- 2,40'1,623.61 Zone- 4 I Cased hole-perforated 17.Casing Size Weight per foot, lb. I.D. in inches Set at ft. 19. Perforations: From To 4 1/2" 12.6 3.958 11,396' 18.Tubing Size Weight per foot, lb. I.D. in inches Set at ft. 9,792' - 9,816' MD 2 7/8" 6.4 2.441 9,714' 20. Packer set at ft: 21.GOR cf/bbl: 22.API Liquid Hydrocardbons: .23.Specific Gravity Flowing Fluid(G): 9,714'MD N/A N/A 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure(Pa): ❑ Tubing ❑ Casing 157 F° 4108 psia @ Datum 9607' TVDSS 14.7 psia 25. Length of Flow Channel(L): Vertical Depth(H): Gg: %CO2: %N2: %H2S: Prover: Meter Run: Taps: 9816' 9617' 0.56 0.335 0.318 - - - - 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line X Orifice Size(in.) Size(in.) psig Hw F° psig F° psig F° Hr. 1. 3.823 X 2.5 317 84.5 35 3139 96 3.25 2. 3.823 X 2.5 334 178.2 32 3046 95 2 3. _ 3.823 X 2.5 350 320.1 27 2892 96 1.5 4. 3.823 X 2.5 345 112.1 25 281496 2.75 • 5. X _ Basic Coefficient Flow Temp. Super Comp. I Pressure Gravity Factor Rate of Flow No. (24-Hour) t hwPm Pm Factor F Factor 0 Mcfd Fb or Fp Ft 9 Fpv 1. 1790 2. ----Not Available--- Calculated by Weatherford Testing Unit---- 2660 3. 3660 4. 4330 5. Temperature for Separator for Flowing No. PrT Tr z Gas Fluid Gg G 1. 0.56 _ 2. N/A N/A N/A N/A 3. Critical Pressure 4. Critical Temperature 5. Form 10-421 Rev. 7/2009 CONTINUED ON REVERSE SIDE Submit in Duplicate r-- Pc - pc2_40 OPf 4108 pf2 16875664 No. Pt Pt2 Pc2-Pt2 Pw Pw2 Pct-Pv Ps Pse Pf2-Ps2 1. 3969 15752961 1122703 2. 3846 14791716 2083948 3. 3692 13630864 3244800 4. 3584 12845056 4030608 5. 25. AOF (Mcfd) 11,456 n 0.689 Remarks: I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed Title Chief Reservoir Engineer Date 11/6/2013 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ -I hwPm Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet(TVD) L Length of flow channel, feet(MD) n Exponent(slope) of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia O Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back-Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City Oklahoma Form 10-421 Revised 7/2009 Side 2 • • . _ 0 L U 2 . LO UI d- r-i r-I I I 0- 11 0_ o I.L.- �` 0< O Q J Ico ``N . o s o 8 c-06 X zeisd `zsd • zid RECEIY STATE OF ALASKA AL:A A OIL AND GAS CONSERVATION COM ION OCT 0 3 2013 REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon ❑ Repair Well ❑ Plug Perforations ❑ Perforate ❑ Other J 4,11j E . Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver❑ Time Extension CNt.'r s•Q Z Change Approved Program ❑ Operat.Shutdown L] Stimulate-Other ❑ Re-enter Suspended Well 2.Operator Buccaneer Alaska Operations,LLC 4.Well Class Before Work: 5.Permit to Drill Number: Name: Development LI Exploratory❑ 213-091 • /o•/1•/3 3.Address: 952 Echo Lane,Suite 420,Houston,Texas Stratigraphic❑ Service ❑ 6.API Number: 77024 50-133-20168-00-00 . 7.Property Designation(Lease Number): 8.Well Name and Number: MHT 9300082 Kenai Loop#1-4 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): CBL/GR / G1.-1 C- l./ Kenai Peninsula Exploration 11.Present Well Condition Summary: Total Depth measured 11,398 feet Plugs measured feet true vertical 11,198 feet Junk measured feet Effective Depth measured 11,020 feet Packer measured feet true vertical 10,793 feet true vertical feet Casing Length Size MD TVD Burst Collapse Structural 138 16" 138 138 Conductor Surface 3057 10.75 3057 3054 5210 2470 Intermediate 9550 7.625 9550 9358 6890 4790 Production Liner 2196 4.5 11396 11198 8430 7500 Perforation depth Measured depth 9792'-9816' feet True Vertical depth 9590'-9614' feet Tubing(size,grade,measured and true vertical depth) 2 7/8"L-80 9750'MD 9549'TVD Proposed Packers and SSSV(type,measured and true vertical depth) Weatherford Ultra Pak 9750'MD 9549'TVD Baker 2 7/8"Select T 600'MD 600'TVD 4.5" 12.Stimulation or cement squeeze summary: Intervals treated(measured): Squeeze perforations at 9870'9872'MD-5 shots 9666'-9668'TVD to liner top at 9273'MD 9076'TVD Treatment descriptions including volumes used and final pressure: see attached treatment report. Pumped 30 BBL(145 SKS)15.8#cement. Final pump pressure prior to shutting down was 2000# 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: Subsequent to operation: 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run CBL/GR Exploratory • Development El Service ❑ Stratigraphic Daily Report of Well Operations x 16.Well Status after work: Oil ❑ Gas ❑ • WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUGL 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: Contact Bob Lenhart Email drillsupervisor(c�buccaneerenergy.com Printed Name /ate / I Title Drilling Supervisor Signature de Phone 713-818-6260 Daae 9/30/2013 74_. (D. 0.13 RBDMS OCT 11 204.1)1- - Form 04 1"Form 10-404 Revised 10/2012 Submit Original Only Schlumberger 1 C: _ Buccaneer Operatio�hs Alaska. LLC . . _ KL U 1 -4 I = Kenai Loop Kenai Country. USA Y Compensated Neutron Log Q CNL-GR 0 1-Oct-2013 a03 Elev.: K B. 113.50 ft N Q 1765'FNL&1254 FWL a0 O z X: 279,736 Y:2,402,388 G.L. 92.50 ft _oo� �z , Permit#213-091 D.F. 113.50 ft - - ,- Q c c m D 0O Permanent Datum: MeanS�a Level Elev.: 0.00 ft Y T Y m —' Log Measured From: Drill Floor 113.50 ft above Perm. Datum t L c Drilling Measured From: Drill Floor us o as __ o- a a� E API Serial No. Section Township Range 33 6N 11 W A3 � _, � 8 50-113-2061&00-00 a Logging Date 1-Oct-2013 Run Number 1 Depth Driller 10998 ft Schlumberger Depth 11000 ft Bottom Log Interval 11000ft Top Log Interval 9000 ft Casing Fluid Type Brine Salinity Density 9.6 Ibm/gal Fluid Level Oft BIT/CASING/TUBING STRING l Bit Size 6.125 in . From To Casing/Tubing Size 4.500 in Weight 12.6 Ibm/ft Grade From TO Maximum Recorded Temperatures 175 degF Logger On Bottom I Time 1-Oct-2013 `-i Unit Number I Location 2158 1 Kenai Recorded By Will Spaulding . Witnessed B Crai• Ran• BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Well Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 . • BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Surface Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 IIII IP (.... . ) r&IIu CEMENT JOB REPORT BkK ER HUGHES CUSTOMER BUCCANEER ALASKA OPERA DATE 11-AUG-13 F.R.# 819510027 SERV.SUPV. JUSTIN BALDWIN LEASE&WELL NAME LOCATION COUNTY-PARISH-BLOCK KENAI LOOP#1-4-API 50133206180000 33-6N-11W Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG# TYPE OF JOB Kenai Glacier Surface SIZE&TYPE OF PLUGS LIST-CSG-HARDWARE MECHANICAL BARRIERS MD TVD I HANGER TYPES MD TVD MATERIALS FURNISHED BY BJ LAB REPORT NO. PHYSICALICIARY P OPERTIES .. SACKS SLURRY SLURRY WATER PUs" BbI OF WOT YLD GPS ' BbiMIX CEMENT PPG FT MAIN SLURRY 1 WATER Seal I Lead CMT036913A Bond I 1,145 13.5 1.68 8.82 ` 342.2 Type240.56 Type I Tail 200 14.8 1.34 6.34 47.90 30.21, Displacement Fluid 52.63 Available Mix Water 600 Bbl. Available Displ.Fluid 60 BbI. TOTAL 1 466.731 270.77 HOLE TBG-CSG-D.P. COLLAR DEPTHS SIZE %EXCESS r DEPTH . ID OD WGT. 0 TYPE MD TVD�GRADE SEDC FLOAT STAGE , 13.5 3003 9.95 10.75 45.5 CSG 3003 3000 ____ LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLUID E2.pit Aar.. TYPE. _ M WO , BRAND&TYPE DEPTH TAP BTM .6132. .THREAD .. TYPE, WOT. 15 16 84 120 120 j 2 1502 WATER BASEDML 91 DISPL VOLUME DISPL.FLUID CAL.PSI CAL MAX PSI OP.MAX ' MAX TBG PSI MAX CSG PSI MIX ----.----._.. WATER VOLUME UOM TYPE WGT. BUMP PLUG TO REV. SQ.PSI RATED Operator I RATED Operator 52.6 BBLS Displacement Fluid 13300 10640: 3500 2800 Rig EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: No Plug To Bump PRESSUREIRATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID j FLUID ( SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 2500 PSI CIRCULATING WELL • RIG X BJ 00:00 0 0 0 0 0 8-9-13 09:45 0 0 0 0 0 Safety Meeting At Shop 11:00 0 0 0 0 0 Leave yard with bulk truck,and cement van 11:45 0 0 0 0 0 On location,spot equipment 16:00 0 0 0 0 0 Location rigged up,go back to shop 00:00 0 0 0 0 0 8-10-13 05:30 0 0 0 0 0 Yard Time 06:00 0 0 0 0 0 Crew at yard,possible 0900 call out 14:00 0 0 0 0 i 0 CaN in to rig,Not ready,send crew home to be ready for job late afternoon 17:30 0 01 0 01-0- Call in to rig,status update,possible 2100 call out,will call With 3 hour — notice 00:00 0 0 0 0 0 8-11-13 00:30 0 01 0 0 0 Call out from rig,Justin Baldwin,Gonzo,J.Cress,N.Ooostman,D. Nuegnbauer 01:30 00 0 0 0 Crew at yard 01:45 0 0 0 0 0 Pre Trip Meeting,Leave Yard 02:05 0 0 0' 0 0 Arrive Location 02:10 0 0 0 0 0 Talk with Comany Man Jim Brown,Go over numbers,Stand by 05:30 0 0 0 0 0 Rig up Rig Floor 05:30 0 0 0# 0 0 Rig Has to re-rig for top connection 05:53 0 0 0 I 0 0 Rig Floor Safety Meeting,Talk about job operations, Talked about who would call cement back to surface. Jim Brown,night Co.Man,said he .. Report Printed on ALIO.,,4144200 Page 1 .,- III • C ) Pill CEMENT JOB REPORT BAKER HUGHES PRESSUREIRATebETAIL EXPLANATION TIME T PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. - PIPE ANNULUS BPM I PUMPED TYPE TEST LINES 2500 PSI CIRCULATING WELL - RIG X BJ _ would call cement to surface,and weigh prior to shutting down mixing. Rig mud scale and sample catchers rigged up. 06:30 0 0 0 0 0 Reset 3305/Re-Initalize Monitor 06:38 0 Q 0 0 0 Pump 5 bbl water ahead 06:42 500 0 0 0 0 Pressure test line,500 low 06:44 2500 0 0 0 0 High Pressure Test 06:47 0 0 0 0 0 Bleed off pressure,fix leak 06:50 2500 0 0 0 0 Pressure test,2500 06:55 0 0 0 0 0 bleed off 06:56 0! 0 0 0 0 batch up spacer,8.5#,24 bbls ' M 06:57 0 0 0 0 0 Rig shut us down,investigate burning exhaust smell,Was the exhaust from our unit blowing into rig ' 06:59 0'_ 0 0 0 Resume Batch up 07:11 0 0 5 24 SPCR pump spacer 07:18 0 0 0 0 0 Shutdown,24.8 bbl spacer pumped away ' 07:18 0 0 0 0 0 Batch up Cement,Weigh Cement 13.5# 07:26 0! 0 0 0 0 Pump downhole 07:30 0 0 0 0 0 Sample, 13.6# 07:37 330 0 4.5 53 CMT Downhole 07:43 290 0 4 83 CMT Downhole 13.51E 07:51 288 0 4 123 CMT Downhole 13.5# 07:55 224 0 4 135 CMT Downhole,13.6# 08:02 215 0 4 165 CMT Downhole, 13.51 08:07 0 0 0 0 CMT Took Sample,13.5# 08:14 211 CMT Gauge hole bbl mark,no cement to surface 08:26 260 CMT Spacer coming bads,rig opened to cellar 08:39 304 CMT Pump down,14.4#at tail end of slurry, Cement to surface called out by Night Co.Man Jim Brown 08:40 MUD Displace 08:42 435 0 4.9 6.5 MUD Displace 08:43 491 0 4.8 10 MUD Displace 08:44 0 1.5 MUD No mud supply from rig 08:47 668 0 4.1 25 MUD Mud supply corrected 08:54 0 0 0 50 MUD Shut down,Bleed off,check float,50bbl pumped per D-Tank,51.9bbl on meter 08:58 0 0 0 0 Float held,less than 1/4 bbl back 08:59 0 0 0 0 0 Wash out excess cement 09:10 0 0 0 0 0 Rig Down Meeting PSI TO TEST BBL.CMT TOTAL PSI SPOT BUMPED BUMP FLOAT RETURNS/ BBL. LEFT ON TOP OUT SERVICE S : r . PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT //i+° Y N Y N 60 383 0 j Y N _ Re{art Pnntq m AUG-11_13 164208 Page 2 f+:u • S VP.11 Baker Hughes JobMaster Program Version 3.60 Job Number: 819510027 BlauCustomer: Buccaneer Alaska Well Name: Kenai Loop KL#1-4 8-10-13 Buccaneer KL#1-4 Surface Cement —1 5000 1 Stop Job,Cement Back to Surface 400& Batch Lead Slurry ,S 3000 ure Test c= t 60bblDisplacmentComplete a Batch Speyer SwapDisplacement1 n to ,a 0 3 1 �i _-5 z 10 11 aS 1 ii 2000 - 1''"V ti+y,. 3S 4 LL 11 p y 1 J 1 i J oLti-'.. ' LI I' -1 1 I _fr.- 1 0:00:00:00 0:00:50:00 0:01:40:00 0:02:30:00 3306 ET Oren) Baker Hughes Job Start: Sunday,August 11,2013 • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC V�.. Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4"Surface HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 3,000 ft Depth (MD) 3,003 ft Hole Size 13.5 in Casing Size/Weight 10 3/4 in, 45.5 lbs/ft Pump Via Drill Pipe 5"O.D. (4.276" .I.D) 19.5 Total Mix Water Required 11,524 gals Weighted Spacer Seal Bond 24 bbls Density 8.5 ppg Cement Slurry Type I 1,306 sacks Density 13.5 ppg Yield 1.68 cf/sack Displacement Displacement Fluid 53 bbls Report Printed on September 27,2013 3'55 PM Page 1 Gr4109 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • Operator Name: BUCCANEER ALASKA OPERATIONS LLC E RI I Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4" Surface HUGHES Date: September 23, 2013 Proposal No:1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 15.000 CASING I 120 I 120 13.500 HOLE I 3,003 I 3,000 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) MEASURED I TRUE VERTICAL 10.750 I 9.950 I 45.5 I 3,003 I 3,000 Float/Landing Collar set @ 2,963 ft Mud Density 8.30 ppg Est. Static Temp. 88 ° F Est. Circ.Temp. 80 ° F VOLUME CALCULATIONS 120 ft x 0.5969 cf/ft with 0% excess = 71.5 cf 2,883 ft x 0.3637 cf/ft with 100% excess = 2097.2 cf 40 ft x 0.5400 cf/ft with 0% excess = 21.6 cf(inside pipe) TOTAL SLURRY VOLUME = 2190.4 cf = 390 bbls Report Printed on: September27,2013 3.5` Page 2 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC /di Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4"Surface HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS Weighted Spacer 24.0 bbls Seal Bond + 5.7 lbs/bbl Barite- Sacked @ 8.5 PP9 VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry 2190 / 1.68 = 1306 sacks Type I Cement+0.005 lbs/sack Static Free + 0.8% bwoc CD-32 + 0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L + 1% bwoc Sodium Metasilicate +78.3% Fresh Water Displacement 52.6 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 13.50 Slurry Yield (cf/sack) 1.68 Amount of Mix Water (gps) 8.82 Amount of Mix Fluid (gps) 8.83 Report Printed on September 27,2013 3'.55 PtGr4129 Paae 3 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping F/fill •West Coast Area Laboratory Rep' BAKER HUGHES Resort#: CDB036813A Client/Well Information: Company: Buccaneer District: Kenai Depth MD: 3003 Field: Kenai Loop Job Type: Surface Depth TVD: 3000 Well: KL 1-4 Hole Size: 13.5 BHST: 88 Prepared for: Pete Berga Casing Size: 10-3/4" BHCT 80 Submitted by: Joshua Herald Cement: Type I Water: Fresh Tested b : Jamison Lot#: Date: 7/25/13 Slur Desi•n: Static Free 0.05 % BWOC Base Type I 100 % FP-6L 1 gal/100sack Additives A-2 (SMS) 1 % BWOC CD-32 0.8 % BWOC ASA-301 0.1 % BWOC Slurr Pro•erties: =«,I Density: 13.5 ppg Yield: 1.68 ft3/sack Mix Water: 8.815 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 84 86 76 71 62 33 27 21 55 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0.4 Strength Fluid Loss: 553 cc/30min Consistometer Recording of Bearden Consistency(Time rsinrrrszmnf.' Machine: Sponge 30 bc: 50 bc: 70 bc: 3:59 100 bc: 600_. 40000- 100 540- 36000— 90 = 480_ 32000- 80-- 420' 28000' 70-. 360= 24000_ k 60-_ /rte i 300- i 20000- I50_.. il 240' &16000' 8 40-.. 180 12000- I 30 _ -� IQ - IQ _, 120 8000_ 20_- ,_ ___.--...-- ---- C 60- 4000- 10-.. _.. _ 0 0:00 1:00 2:00 3:00 4 00 5:00 Time(HH:8/114) Compressive Strength Data: Temp 5:10 14:51 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr ' 88 1 F 50 psi 500 psi 236 401 751 1043 1169 400- 20- 1600- 4- 360- 18- 1620- y- 320- 16- 1440' _ 2807 147 1260- S _ 2.6 -�---0 ,210' j$j n 12- 1060- t . .. -.. _.� 2007 1■E 107 900- 2 _ �- b 160- • 8- 1 720- 1 ' O 120- 6- -¢ - 80-_ ♦— 360- . ��/ '- 40- 2- 180- _ I 0 8 i6 21 32 w 48 56 64 �2 1Yre INO Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage, whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. • S EMI BAKER master copy) HUGHES Proposal No: 1001161515G DATE DATEBUCCIalsippREgASKA OPERATIONS LLC KENAI LOOP#1-4 ORDERED RECD BY FOR WHAT 9/24/2013 9/25/2013 Randy Rig 9/24/2013 Rand KENAI LOOP Field Hopper 33-6N-11w 9/25/2013 Ranclnai County, AlaskaGun lines eptember 23, 2013 9/25/2013 9/26/2013 Randy Rig 9/25/2013 Randy Rig 9/26/2013 Randy Rig 9/26/2013 InX9A-Rediate Cement's 9/26/2013 Ra y Post Job Report Rig 9/26/2013 Randy Rig P ra for:. Prepared by: 9/2e Ye-� enngan Randy hghua Herald 9/26pkot1Egineer Randy -Whnical Support Engineer 9 u e r Alaska Operations Bus Phone: 907-776-4084 /2 e: 337-984-2603 Randy grail: Joshua.Herald@bakerhughes.com 9/2W2013 shennigan@peiiRsmc lleile: 907-398-8303 Mobile: 337-849-5345 9/26/2013 Randy Rig 9/26/2013 Randy Rig 9/26/2013 Randy Rig 9/26/2013 Randy Rig Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision C,41O • • FAA CEMENT JOB REPORT RAKER ,C • HUGHES CUSTOMER BUCCANEER ALASKA OPERA DATE 02-SEP-13 F.R.# 10011010467 SERV.SUPV. JOSH H PAYNE LEASE&WELL NAME LOCATION COUNTY-PARISH-BLOCK KENAI LOOP#1.4-API 50133206180000 33-6N-11W Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG# TYPE OF JOB Kenai Glacier Intermediate SIZE&TYPE OF PLUGS LIST-CSG-HARDWARE MECHANICAL BARRIERS MD TVD I HANGER TYPES MD TVD dart plug 700-LAP-PVTS Float Collar, 7-5/8 ii DN stage tool DN tool Cement PIug,Rubber,Top 7 Float Shoe 7-518-8rd PHYSICAL SLURRY PROPERTIES SACKS SLURRY SLURRY WATER PUMP Bbl OF WGT YLD GPS TIME Bbl MIX MATERIALS FURNISHED BY BJ LAS REPORT NO. 1 CEMENT PPG FT HR:MIN SLURRY WATER Seal Bond 037013c10.3 —_ 30' Class G Slurry 037013c 1,191 15.8 1.15 4.921 06:10 244.44 139.51 Displacement Fluid 432.34 Available Mix Water 585 Bbl. Available Displ.Fluid 385 Bbl. TOTAL ( 706.771 139.51 HOLE TBG-CSG-D.P. COLLAR DEPTHS elZE %EXCESS , DEPTH ID • Q VNGT. . TYPE 1 MID TVD , GRADE . SHOE FLOAT . STAGE , 9.875 40 9496 ! 6.875 7.625 29.7 CSG _9496 9301 C-75 9498 1 9418 1 LAST CASING PKR-CMT RET-BR PL-LINER I PERF.DEPTH TOP CONN WELL FLUID 10 . GP WGT TYPE l -M _/MP OPAr1I2 E.TYPE j PENH Tr}P i ). 5l E .THREAD TYPE WY 3T. 10.'10.75 46. CSG 3003 3003 0 0 7.625 BUTT WATER BASED ML 9.6 DLSPL.VOLUME DISPL.FLUID CAL PSI CAL.MAX PSI OP.MAX MAX TBG PSI MAX CSG PSI MIX VOLUME UMW TYPE WGT. BUMP PLUG TO REV. SQ.PSI RATED Operator RATED Operator WATER 432.3 BBLS Displacement Fluid 1100 0 0 0 0 6450 5160 rig EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: PRESSUREJRATE13ETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 3000 PSI CIRCULATING WELL - RIG X BJ 06:05 0 0 0 0 0 company man called 08:30 0 0 0 0 0 yard 10:15 0 0 0 0 0 arrive on location 10:20 0 0 0 0 0 safety meeting 10:30 0 0 0 0 0 make sure pump is ready for the job 11:00 0 0 _ 0 0 0 talk with company man about job 12:00 0 0 0 0 0 go over job procedure with tool hand 15:00 0 0 0 0 0 waiting on rig 18:30 0 0 0 0 0 gas kick 22:15 0 0 0 0 0 install head 22:45 0 0 0 0 0 safety meeting 23:00 3000 0 0 5 FRESH Wi test lines 23:15 500 0 4 10 SEAL BON pump spacer 23:30 700 0 6 30 CLASS G pump 15.8 ppg slurry 23:45 730 0 6 3 120 CLASS G pump 15.8 ppg slurry 23:48 0 0 0 120 CLASS G shut down switch air compressors 00:05 743 0 7 190 CLASS G pumping 15.8 ppg slurry 00:20 0 0 0 245 CLASS G end cement 00:25 0 0 0 5 FRESH Wi kick top plug ______, yn 02:00 2100 0 0 432 9.6 PPG M bump plug 0 • Fait' C.., CEMENT JOB REPORT BAKER HUGHES PRESSURE/RATE DETAIL EXPLANATION- TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. BPM PUMPED TYPE PIPE ANNULUS TEST LMIES 3000 PSI CIRCULATING WELL - RIG X BJ 02:45 0 0 0 0 9.6 PPG M drop bomp load plug to close DN tool 03:20 750 0 .5 5 FRESH Wi DN tool opened at 750 psi 04:00 0 0 0 0 0 secure pump PSI TO TEST BBL.CMT TOTAL PSI SPOT SERVICE SUPERVISOR SIGNATURE: BUMPED BUMP FLOAT RETURNS/ BBL LEFT ON TOP OUT PLUG PLUG ..--1 EQUIP. REVERSED PUMPED CSG CEMENT , ,f'' Y N 2100 Y N 400 600 0 Y N ' ' " • s Baker Hughes JobMaster Program Version 3.60 Job Number: 10011010467 BAKEIR Customer: Buccaneer HUGHES Weil Name: kenal loop 4 20 4000 _ *art slurry '' r end job 3000- r * J r \\,......_, . i Start sweep to CI. change air compressor a CA CD O. '52000 10 Z+ w H il ca c CL CI 1000 kick plug-. !J iii\''- */ i.) n i . .'ill A 1 0 20 40 60 80 85 Elapsed Time(min) « Job Start: Monday.September 02,2013 • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC Fa.. Well Name: KENAI LOOP#1-4 BAKER Job Description: 7 5/8" Intermediate HUGHES Date: September 23, 2013 Proposal No: 1001161515E JOB AT A GLANCE Depth (TVD) 9,301 ft Depth (MD) 9,496 ft Hole Size 9.875 in Casing Size/Weight 7 5/8 in, 29.7 lbs/ft Pump Via 7 5/8"O.D. (6.875" .I.D) 29.7 Total Mix Water Required 5,860 gals Weighted Spacer Seal Bond 30 bbls Density 10.3 ppg Slurry Class G Slurry 1,191 sacks Density 15.8 ppg Yield 1.15 cf/sack Displacement Displacement Fluid 432 bbls Report Printed on: September 27,2013 3,55 PM Page 4 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping 4111 • Operator Name: BUCCANEER ALASKA OPERATIONS LLC FAIN Well Name: KENAI LOOP#1-4 BAKER Job Description: 7 5/8" Intermediate HUGHES Date: September 23, 2013 Proposal No:1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 9.950 CASING I 3,003 I 3,000 9.875 HOLE I 9,496 I 9,301 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) MEASURED I TRUE VERTICAL 7.625 I 6.875 I 29.7 I 9,496 I 9,301 Float/Landing Collar set @ 9,416 ft Mud Density 9.80 ppg Est. Static Temp. 157 ° F Est. Circ. Temp. 124 ° F VOLUME CALCULATIONS 4,496 ft x 0.2148 cf/ft with 40% excess = 1351.8 cf 80 ft x 0.2578 cf/ft with 0% excess = 20.6 cf(inside pipe) TOTAL SLURRY VOLUME = 1372.4 cf = 245 bbls Report Printed on: September 27,2013 3'.55 PM Page 5 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping S Operator Name: BUCCANEER ALASKA OPERATIONS LLC Ira.. Well Name: KENAI LOOP#1-4 BAKER Job Description: 7 5/8" Intermediate HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS Weighted Spacer 30.0 bbls Seal Bond + 19.5 lbs/bbl Potassium Chloride + 92.3 lbs/bbl Barite- Sacked @ 10.3 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 1372 / 1.15 = 1191 sacks Class G Cement + 0.005 lbs/sack Static Free +0.2% bwoc R-3 + 0.6% bwoc FL-63 + 0.3% bwoc CD-32 + 0.05% bwoc ASA-301 + 1 gals/100 sack FP-6L +43.7% Fresh Water Displacement 432.3 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.15 Amount of Mix Water (gps) 4.92 Amount of Mix Fluid (gps) 4.93 Report Printed on September 27,2013 3:55 P.1 Gr4129 Page 6 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Rev. D ///ll . West Coast Area Laboratory Rep 5-20-13 BAKER HUGHES Report#: CMT037013C FRIVNTIMMEREM ...-- Company: Buccaneer Alaska District: Kenai Depth MD: 9496 Field: Kenai Loop Job Type: Intermediate Depth TVD: 9301 Well: KL 1-4 Hole Size: 9 7/8" BHST: 157 Prepared for: Pete Berga Casing Size: 7 5/8" BHCT 124 Submitted by: Ken Nix Cement: Class G Water: Fresh-Tap Tested b : Yarbrou•h Lot#: Alaska Date: 8/9/13 Slurry Design: R-3 0.2 %BWOC ASA-301 0.05 %BWOC Base I Class G 100 % FL-63 0.6 % BWOC Additives CD-32 0.3 % BWOC FP-6L 1 3al/100sacl Static Free 0.005 lb/sack Slurr Pro.erties: Density: 15.8 ppg Yield: 1.15 ft3/sack Mix Water: 4.927 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 60 rpm 30 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 124 F 0 86 61.5 34.5 27 12.5 3.5 2 84 5 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0 Strength Fluid Loss: 44 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): , Machine: Jack 30 bc: 50 bc: 70 bc: 6:10 100 bc: 32000. 80 • E,80_ .607 ..nace—If 12000 17 90 , ' ,A— 8000— p— _....._ __ _._.__L-- ..__-_.._ _.. -_.... 0 0 00:00 1 0 2A0 9:00 a.00 bW BAO 7 0 Time I188W Compressive Strength Data: Minidal Temp 9:27 10:48 ` `'8 11 " -12 -r 'r 48 hr— r`- 96 'r" " _..,. 157 I F 50 psi 500 psi 838 2457 3015 .00- 20- 320— ,8• _ /.. 280— 14 7 .'1000— fl Few— 112- ;3�— 1.200 ' 10 $ _ 13V 1 b- 2000 I'f 120—if .1 1500— pI ro 2 / 0:00 BDO ,bW 2100 32:00 00.00 08.00 T(1.0M5.0 Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage.whether due to negligence or otherwise,arising out of or in connection with such data,calculations.or opinons. • s Buccaneer Energy Well: Kenai Loop KL 1-4 CemFACTS Report Design Date: 6/18/13 Service Type: 7 5/8" Intermediate Customer Representative: Stephen Hennigan Baker Hughes Representative: Ken Nix r' u BAKER HUGHES Advancing Reservoir Performance /AMBaker Hoes CemFACTS Program Version I0 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Service Information Design Date: 6/18/13 Customer: Buccaneer Energy Well: Kenai Loop KL 1-4 State: AK Customer Representative: Stephen Hennigan Service Type: 7 5/8" Intermediate Service District/Boat: Kenai Baker Hughes Representative: Ken Nix Well Description Well Depth: 9496 ft Shoe Depth: 9496 ft Landing Collar Depth: 9416 ft Cement Top: 5000 ft Previous Shoe Depth: 3000 ft Surface Temperature: 55 °F Static BHT: 157 °F Circulating BHT: 124 °F Surface Line Length: 50 ft Surface Line ID: 1.750 in Cement Excess: Increase Hole Size(s) Hole Dia. From To in ft ft 9.950 0 3000 9.875 3000 9496 Casing OD ID Weight From To in in lbm/ft ft ft 7 5/8" 7.625 6.875 29.70 0 9496 Miscellaneous Treating Line Volume: 0 bbl Pipe Vol Above Collar: 432 bbl Pipe Vol Below Collar: 4 bbl Annulus Volume: 436 bbl Displacement Volume: 432 bbl Total Volume: 872 bbl Casing Wt(Air): 276250 lbf Casing Wt(Eff): 173411 lbf Wellbore Start End Hole Casing Casing Summary MD MD TVD ID OD ID ft ft ft in in in Cased 0 3000 2997 9.950 7.625 6.875 Open 3000 5000 4971 9.875 7.625 6.875 Open 5000 9496 9301 10.643 7.625 6.875 Baker Hughes 1 06/18/13 ��•• Baker Hes CemFACTS Program Version 0 �, iJob Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluids ( 4 Total) Fluid 1 Type: Initial Mud Fluid Description: Drilling mud Gel Strength: 4.0 lbf/hft2 Plastic Viscosity: 9.0 cp Yield Point: 20.0 lbf/hft2 Density: 9.80 ppg Fluid 2 Type: Preflush or Spacer Fluid Description: Seal Bond n: 0.6040 K: 0.7098 Ibf.s^n/hft2 Yield Point: 2.4 lbf/hft2 Density: 10.50 ppg Fluid Volume: 40 bbl Water: 100.0 % Water Volume: 40 bbl Net Height: 1046 ft Total Height: 1046 ft Top: 3954 ft Bottom: 5000 ft Displacement Rate: 4.00 bpm Contact Time: 10.0 min _ Mixing Rate: 4.00 bpm Fluid 2 Additives 0.0% 0.0 Ibm Fluid 3 Type: Cement Slurry(Slurry) Fluid Description: Cement n: 0.6799 K: 3.3300 Ibf.s^n/hft2 Yield Point: 0.1 lbf/hft2 Density: 15.80 ppg Cement Yield: 1.1500 ft3/sack Total Cement: 1193 sacks Slurry Volume: 244 bbl Water: 4.91 gal/sack Water Volume: 140 bbl Excess: 40.0 % Excess: 0 ft Net Height: 4496 ft Total Height: 4496 ft Top: 5000 ft Bottom: 9496 ft Mixing Rate: 19.5 sack/min Mixing Rate: 4.00 bpm Baker Hughes 2 06/18/13 IffiiillII Baker Hies CernFACTS Program Version Ito Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid 3 Additives L0.0% I 0.0 Ibm 1 Fluid 4 Type: 'Displacement Fluid Description: Displacement Plastic Viscosity: 9.0 cp Yield Point: 20.0 lbf/hft2 Density: 9.80 ppg Fluid Volume: 432 bbl Water: 100.0 % Water Volume: 432 bbl Total Height: 9416 ft Top: 0 ft Bottom: 9416 ft Operating Schedule Segment Volume Rate Time Cum.Time bbl bpm min min Seal Bond 40 4.00 10.0 10.0 Cement 244 4.00 61.1 71.1 Shut-Down 0 0.00 15.0 86.1 Displacement 432 10.00 43.2 129.4 Flow Inner Outer Pump Fluid Rey. Qmin Ref. Behavior Dia Dia Rate Vel. No. Turb. Temp. in in bpm ft/min bpm °F Drilling mud 5.500 8.750 6.00 133.4 6031 12.17 Seal Bond 5.500 8.750 6.00 133.4 56957 0.32 Cement 5.500 8.750 6.00 133.4 4872 6.20 Displacement 5.500 8.750 6.00 133.4 353 32.86 5.500 8.750 6.00 133.4 129 49.37 5.500 8.750 12.00 266.7 14239 2.53 Summary Est. Max Disp. Rate: 13.00 bpm Slurries Mixing Time: 61.1 min Displacement Time: 43.2 min Net(From Cement Mixing): 119.4 min Total(From Start): 129.4 min Baker Hughes 3 06/18/13 Rau'� Baker Hees CemFACTS Program Version PO Job Number: BAKER Customer: Buccaneer Energy HUGHES well Name: Kenai Loop KL 1-4 Density Pore Den EIV rcat ueri @ 717 bbl 3000 I 4000 L z 6000 N R d - L 8000 1 8 10 12 14 16 17 Density Baker Hughes 4 06/18/13 r Baker Hoes CemFACTS Program Version")F/111111F/111111 Job Number: BAKERCustomer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 ECD @ Critical Depths 15 20 1 1 1 I I I )00 15— 10— 10 —3000 °' E ,,,r a - a - coo 'N .° 2 c 10 @� d co w - N o �' o o 0 = W- cL W 7) - -2000 5 —5 5 — `000 0 1 I I I 1 I 1 I 1 — C 50 100 130 Elapsed Time (min) Baker Hughes 5 06/18/13 Baker Hues Cerr1FACTS Program Version 51 vg kg Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 70 MD=9496 ft, Volumes in bbl Design Actual Stage =1000 717 717 Slurry Total 709 Return Total 40 40 01. Seal Bond -2000 244 244 02. Cement 0 0 03. Shut-Down 432 432 04. Displacement C-3000 -4000 -5000 -6000 17000 —8000 -9000 Baker Hughes 6 06/18/13 ��■ Baker Hues CemFACTS Program Version 50 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Wellbore Diagram Drilling mud(0 ft) NM Seal Bond(3954 ft) Cement(5000 ft) 000 Displacement(9416 ft) I 2000- 2000 3000 4000- 4000 5000 6000- 6000 7000 8000- 8000 9000 9301- 9496 � I 0 1397 Offset, ft Baker Hughes 7 06/18/13 ��•■ Baker Hues CemFACTS Program Version 50 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid Displacement/Placement Standoff(%) Effectiveness (%) 0 Oft Drilling mud 0 -500 0 0 -1000 0 0 -1500 0 0 -2000 0 -2500 0 0 -3000 0 54 3500 54 -4000 sosm, Seal Bond 46 46 -4500 47 5000 Cement 100 100 -5500 100 -6000 100 100 -6500 100 100 - 7000 100 100 7500 100 -8000 100 100 -8500 100 100 -9000 100 100 9496 ft 0 67 100 -180 0 180 Baker Hughes 8 06/18/13 Baker Hues CeCnFACTS Program Version 50 FA au Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Disclaimer Notice Baker Hughes personnel will use good faith at all times in interpreting information, making recommendations, (either written, or oral) as to the type or amount of products, equipment or services to be furnished, the manner of performance, or in predicting results to be obtained. The recommendation and projections given are estimates based on calculations produced by a computer model including various assumptions regarding the well, reservoir and treatment. Due to the uncertainty of variable well conditions and the necessity of relying on facts and supporting services provided by the Customer and its other contractors, Baker Hughes hereby disclaims the accuracy of any chart interpretation, research, analysis,job recommendation or other data furnished by Baker Hughes. Such data shall include the attached report, any similar information provided electronically and any data generated through real-time monitoring. NO WARRANTY IS GIVEN CONCERNING THE EFFECTIVENESS OF THE PRODUCTS OR EQUIPMENT USED, RECOMMENDATIONS GIVEN OR SERVICES RENDERED. NO WARRANTIES, EXPRESS OR IMPLIED ARE MADE AND ALL SUCH WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABLITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY EXCLUDED AND DISCLAIMED BY BAKER HUGHES. Baker Hughes 9 06/18/13 • •— BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Liner Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 III . .&il C . ,CEMENT JOB REPORT BAKER HUGHES CUSTOMER BUCCANEER ALASKA OPERP 1 DATE 18-SEP-13 I F.R.fl 10011014891 SERV.SUPV. CECIL J JONES LEASE&WELL NAME 1LOCATION COUNTY-PARISH-BLOCK KENAI LOOP 01-4-API 50133208180000 34-614-11W Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG S TYPE OF JOB Kenai Liner SIZE&TYPE OF PLUGS LIST-CSG-HARDWARE MECHANICAL BARRIERS MD TVD HANGER TYPES MD TVD MATERIALS FURNISHED BY EJ LAB REPORT NO. r PHYSICAL SLURRY PROPERTIES SACKS SLURRY SLURRY WATER PUMP BbI OF WGT YLD GPS TIME Bbl MIX CEMENT PPG FT HR:MIN SLURRY WATER Seal Bond 11 40 Class G I 388 15.8 1.18, 4.96 81.35 45.82 • Displacement FluidI j 10.4 129.81 Available Mix Water 500 Bbl. Available Dispt.Fluid 500 BbI. TOTAL I 251.151 45.82 HOLE TBG-CSG-D.P. COLLAR DEPTHS S1ZE %EXCESS DEPTH I ID I OD WGT. TYPE I MD I TVD I GRADE SHOE I FLOAT I STAGE 6.75 11396 1 1 4.5 11.6 CSG_,...._ 108971 108971 LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL __11)___j__09 WGT I TYPE MP._ TIM - .__BRAND& EE OEM TOP BTM SIZE THREAD__TYYE INST. 6.9 7.625 30.1 9498 9498 0 0 2 1502 WATER BASED ML 10.4 DISPL.VOLUME DISPL FLUID 1 CAL.PSI CAL MAX PSI OP.MAX MAX TBG PSI 1 MAX CSG PSI MIX VOLUME 1 UOM TYPE I WGT. BUMP PLUG TO REV. SQ.PSI RATED I Operator RATED Operator WATER 129.8 BBLS Displacement Fluid 10.4 Rig EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: Lost water pressure from rig's pump twice,then mud pumps only sup. d 1.5bpm rate. Pumped 30bb1 and turned over displacement to rig. PRESSURE/RATE DETAIL J EXPLANATION __--. TIME PRESSURE-PSI RATE BSI.FLUID FLUID SAFETY MEETING: BJ CREW U CO.REP. HR:MIN. PIPE ANNULUS BPM PUMPED TYPEI 8T LINES 3500 PSI 1 CRCULATING WELL - RIG X sJ X 11:00 i ! Sept 17,2013(C.Jones,T.Mount,J.Gess,G.Gonzales) Rig up equipment. 17:00 r 1 I , j Leave location. 11:00 Sept 18,2013(C.Jones,T.Mount,J.Cress,G.Gonzales,M.Lowery, C.Zoda)Arrive location for job. 11:05 Speak with DSM Lonnie Dillinger. 11:20 Hold rig up safety meeting with crew.__,_. 11:30 Finish final rig up and test equipments. 13:00 Standby 17:00 Hold safety meeting on rig floor with BHI/Rig crews,DSM and Tool Hand. 17:23 75 0 3 3 H2O Break circulation to was up pit. 17:29 1813 0 0 0 H2O Attempt break circulation to shaker.Found a closed valve on rig floor manifold. 17:45 301 0 3 2.5 1-120 Break circulation to shaker. 17:52 3502 0 0 0 H2O Test lines to 3500 psi. 17:59 0 0 0 0' H2O Bleed off. 18:11 0 0 0 0 SPR Batch up spacer to 11. 18:17 509 0 2.3 0 SPR Down hole with spacer. 18:19 20 0 0 2.2 SPR LOST WATER SUPPLY OF WATER FROM RIG. 18:26 0 0 0 0 SPR Finish cleaning out mix system. 18:29 906 0 4.3 2.4 SPR Down hole with spacer. 18:39 118 0 1.8 40 SPR Finish Spacer and increase weight to 15.8ppg cmt. ............ 18:40 0 0 0 0 CMT SHUT DOWN DUE TO LOST WATER FROM RIG. Report Printed on: $P1530307..M Page 1 Jt0004 0 • VAIN CEMENT JOB REPORT BAKER ..-... ..... ...�........ .......__ ... .......... ....._ HUGHES PRESSURE/RATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 3500 PSI CIRCULATING WELL - RIG X BJ X 19:12 0 0 0 0 CMT Finish cleaning out mix system. 19:15 477 0 4 0 CMT Down hole with GMT at 15.8 ppg. 19:35 170 0 1.9 80.2 CMT Finish CMT 80.2 bbl down hole. 19:44 115 0 4 12 WATER 12bbl water(picked up to protect from further loss of water from rig). 19:50 45 0 1.9 24 MUD 24bbl displacement(12 water/12 mud). 19:55 52 0 3 30 MUD 30 bbl displacement(12 water/18 mud). 19:58 Turn over well to rig. 20:00 Hold rig down meeting. __ e Thank you for calling Baker Hughes Pressure Pumping. PSI TO TEST BBLCMT TOTAL PSI SPOT SERVICE SUPERVISOR SIGNATURE: BUMPED BUMP FLOAT RETURNS/ BBL. LEFT ON TOP OUT PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT Y N 0 Y N 0 150 0 Y N Report PreeKt Oe SER 19.1343 07 SS Page 2 :r,-a • • Baker Hughes JobMaster Program Version 3.60 Job Number: 10011014691 BAKER Customer: Buccaneer HUGHES Well Name: Kenai Loop#1-4 Buccaneer Kenai Loop#1-4 4.5 Liner FR:10011014691 10000 30— 1 — 30 bbl disp D/H Spr Lost Water 8,tart Cit -, Resume Cmt D/H Start Displacement Finish Cmt \ Turn over To Rig -20 1 20— Lost Water . , L.,. 1 '°Oi4.S.090V4'{0.0,.11N....TV , :r.n. , .i... ci. a - Rate .12 _ Tti wI 5000 w 15 t th Low Test >. i I r itA—^ 1 v) = 2 ,on f JU 0 10 C o. i5 o is su 10 - - o.oi, Cleaning Up ,... 1mix tub 1. , . L , p , (------ , 1 . 1 --- -7--.1 ,-- r L., 1111 I; 1 1 1 I : 1 0 18:13:06 19:03:06 19:53:06 20:03:06 09/18/13 09/18/13 09/18/13 09/18/13 Baker Hughes Job Start Wednesday,September 18,2013 • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC FA.■ Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 11,000 ft Depth (MD) 11,396 ft Hole Size 6.75 in Liner Size/Weight 4 1/2 in, 12.6 lbs/ft Pump Via Drill Pipe 4" O.D. (3.340" .I.D) 14 Casing 4 1/2" O.D. (3.958" .I.D) 12.6 Total Mix Water Required 1,924 gals Weighted Spacer Seal Bond 40 bbls Density 11.0 ppg Slurry Class G 388 sacks Density 15.8 ppg Yield 1.18 cf/sack Displacement Displacement Fluid 127 bbls Report Printed on: September 27,2013355 PM Page 7 Gr4109 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Operator Name: BUCCANEER ALASKA OPERATIONS LLC r'.. Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2"Liner HUGHES Date: September 23, 2013 Proposal No: 1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) I MEASURED I TRUE VERTICAL 6.875 CASING I 9,498 I 9,301 6.750 HOLE I 11,396 I 11,000 SUSPENDED PIPES DIAMETER (in) I WEIGHT DEPTH(ft) O.D. I.D. I (lbs/ft) MEASURED I TRUE VERTICAL 4.500 I 3.958 I 12.6 I 11,396 I 11,000 Drill Pipe 4.0 (in)OD, 3.34(in) ID, 9,298 ft 14(lbs/ft) set @ Liner 4.5 (in)OD, 3.958 (in) ID, 10,996 ft 12.6 (lbs/ft) set @ Depth to Top of Liner 9,298 ft Float/Landing Collar set @ 10,996 ft Mud Density 10.40 ppg Est. Static Temp. 175 ° F Est. Circ. Temp. 135 ° F VOLUME CALCULATIONS 200 ft x 0.1473 cf/ft with 0% excess = 29 cf 1,898 ft x 0.1381 cf/ft with 50% excess = 393 cf 400 ft x 0.0854 cf/ft with 0% excess = 34 cf (inside pipe) TOTAL SLURRY VOLUME = 457 cf 81 bbls 8 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Operator Name: BUCCANEER ALASKA OPERATIONS LLC Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS Weighted Spacer 40.0 bbls Seal Bond + 19 lbs/bbl Potassium Chloride + 131.2 lbs/bbl Barite - Sacked @ 11 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 457 / 1.18 = 388 sacks Class G Cement+ 0.005 lbs/sack Static Free + 1.2% bwoc BA-56 +0.3% bwoc R-3 + 3% bwow Potassium Chloride + 0.5% bwoc EC-1 + 0.4% bwoc CD-32 + 1 gals/100 sack FP-6L+ 0.2% bwoc Sodium Metasilicate +44% Fresh Water Displacement 126.6 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.18 Amount of Mix Water (gps) 4.96 Amount of Mix Fluid (gps) 4.97 ted on: September27,2013 3:55 PM Page 9 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Rev. D NMI Ikest Coast Area Laboratory Repo 5-20-13 BAKER HUGHES Resort#: CMT037113B Client/Well Information: 11.11111111111111111111111111111111111 Company: Buccaneer Alaska District: Kenai Depth MD: 10897 Field: Kenai Loop Job Type: Liner Depth TVD: 10702 Well: KL 1-4 Hole Size: 6 3/4" BHST: 173 Prepared for: Pete Berga Casing Size: 4 1/2" BHCT 135 Submitted by: Ken Nix Cement: Class G Water: Fresh -Tap Tested b : Yarbrou.h Lot#: Alaska Date: 8/9/13 lur Desi•n: R-3 0.3 % BWOC A-9(KCI) 3 % BWOW L Base 1 Class G 1001 % EC-1 0.5 % BWOC FP-6L 1 )al/100sacl Additives CD-32 0.4 %BWOC Static Free 0.005 lb/sack A-2 (SMS) 0.2 %BWOC BA-56 1.2 % BWOC Slurr Pro•erties: l' Density: 15.8 ppg Yield: 1.18 ft3/sack Mix Water: 4.952 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 60 rpm 30 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 135 F 0 241 159.5 100.5 74 51 23.5 16 216 24 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0 Strength Fluid Loss: 28 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): Machine: Sponge 30 bc: 50 bc: 70 bc: 3:53 100 bc: 600 40000— 100--1- 540 540— 36000— 90— 480— 32000— 80_.. . 420— 28000 70-- 360— QQ 24000— �i 60_ 300— 20000_ 50-= ..- 7. 240— l 6000— 40— -- - Z. 180— .i 12000_ 30 _ _ _ .. _ i.. TIv7. 120- 8000= 20-__ _ ___ __. _..__._.__ ...... _._..__.___ .___. _ Q 60— 4000-7 -_. .. O 0 0 0:00 0:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 Time(HH:MM) Com•ressive Strength Data: Temp 17:49 19:44 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 173 F 50 psi 500 psi 1512 2965 400 18 --J 5000 7 7- 360 1 6 — 4500 = --- 320 14 — 4000 — 280 — i' 3500 12 -_ 24 =0 — 3000 — 1 0 — 200 — - 2500 8 - o 1 60 = = 2000 —.. _ _. __,. _... .. _ _ 1 20 — 6 — 1 500 — 80 — r�1 4 = 1000 — 40 — I 2 — 500 _ O 0 0 - . . f 0 12 24 36 48 Time (F-IF-I) Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon.Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage,whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. • • Buccaneer Energy Well: Kenai Loop KL 1-4 CemFACTS Report Design Date: 6/18/13 Service Type: 4 1/2" Liner Baker Hughes Representative: Ken Nix BAKER HUGHES Advancing Reservoir Performance EMIEMIBaker Hues CernFACTS Program Version AIP Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Service Information Design Date: 6/18/13 Customer: Buccaneer Energy Well: Kenai Loop KL 1-4 State: AK Service Type: 4 1/2"Liner Service District/Boat: Kenai Baker Hughes Representative: Ken Nix Well Description Well Depth: 10897 ft Shoe Depth: 10897 ft _ Landing Collar Depth: 10817 ft Cement Top: 9246 ft Previous Shoe Depth: 9496 ft Liner Hanger Depth: 9246 ft Surface Temperature: 55 °F Static BHT: 173 °F Circulating BHT: 135 °F Surface Line Length: 50 ft Surface Line ID: 1.750 in Cement Excess: Increase Hole Size(s) Hole Dia. From To in ft ft 6.875 0 9496 6.750 9496 10897 Casing OD ID Weight Froml To in in Ibm/ft ft ft Drill Pipe 4.500 3.826 16.60 0 9246 4 1/2"Liner 4.500 3.958 12.60 9246 10897 Miscellaneous Treating Line Volume: 0 bbl Pipe Vol Above Collar: _ 155 bbl Pipe Vol Below Collar: 1 bbl Annulus Volume: 297 bbl Displacement Volume: 156 bbl Total Volume: 454 bbl Casing Wt(Air): 171055 lbf Casing Wt(Eff): 138463 lbf Wellbore Start End Hole Casing Casing Summary MD MD TVD ID OD ID ft ft ft in in in Cased 0 9246 9051 6.875 4.500 3.826 Cased 9246 9496 9301 6.875 4.500 3.958 Open 9496 10897 10702 7.462 4.500 3.958 Baker Hughes 1 06/18/13 Fal•• Baker Hu es CemFACTS Program Version 5. Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluids ( 4 Total) Fluid 1 Type: Initial Mud Fluid Description: Drilling mud Gel Strength: 4.0 lbf/hft2 Plastic Viscosity: 10.0 cp Yield Point: 24.0 lbf/hft2 Density: 10.40 ppg Fluid 2 Type: 'Preflush or Spacer Fluid Description: Seal Bond n: 0.6040 K: 0.7098 Ibf.s^n/hft2 Yield Point: 2.4 lbf/hft2 Density: 11.00 ppg Fluid Volume: 40 bbl Water: 100.0 % Water Volume: 40 bbl Net Height: 1524 ft Total Height: 1524 ft Top: 7722 ft Bottom: 9246 ft Displacement Rate: 4.00 bpm Contact Time: 10.0 min Mixing Rate: 4.00 bpm Fluid 2 Additives 0.0% 0.0 Ibm Fluid 3 Type: Cement Slurry(Slurry) Fluid Description: Cement n: 0.6799 K: 3.3300 Ibf.s^n/hft2 Yield Point: 0.1 lbf/hft2 Density: 15.80 ppg Cement Yield: 1.1590 ft3/sack Total Cement: 271 sacks Slurry Volume: 56 bbl Water: 4.91 gal/sack Water Volume: 32 bbl Excess: 40.0 % Excess: 0 ft Net Height: 1651 ft Total Height: 1651 ft Top: 9246 ft Bottom: 10897 ft Mixing Rate: 19.4 sack/min Mixing Rate: 4.00 bpm Baker Hughes 2 06/18/13 ��'�■ Baker Hues CerFACTS Program Version 50 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid 3 Additives 0.0% 1 __I 0.01 Ibm Fluid 4 Type: Displacement Fluid Description: Displacement Plastic Viscosity: _ 10.0 cp _ Yield Point: 24.0 lbf/hft2 Density: 10.40 ppg Fluid Volume: 156 bbl Water: 100.0 % Water Volume: 156 bbl Total Height: 10817 ft Top: O ft Bottom: 10817 ft Operating Schedule Segment Volume Rate Time Cum.Timel bbl bpm min min Seal Bond 40 4.00 10.0 10.0 Cement 56 4.00 14.0 24.0 Shut-Down 0 0.00 15.0 39.0 Displacement 156 10.00 15.6 54.6 Flow Inner Outer Pump Fluid Rey. Qmin Ref. Behavior Dia Dia Rate Vel. No. Turb. Temp. in in bpm ft/min bpm °F Drilling mud 5.500 8.750 6.00 133.4 6031 12.17 Seal Bond 5.500 8.750 6.00 133.4 56957 0.32 Cement 5.500 8.750 6.00 133.4 4872 6.20 Displacement 5.500 8.750 6.00 133.4 353 32.86 5.500 8.750 6.00 133.4 129 49.37 5.500 8.750 12.00 266.7 14239 2.53 Summary Slurries Mixing Time: 14.0 min Displacement Time: 15.6 min Net(From Cement Mixing): 44.6 min Total(From Start): 54.6 min Baker Hughes 3 06/18/13 ��'i Baker Huces CemFACTS Program Version 5411 Job Number: BAKERCustomer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Density Pore Den ECD Frac Dc• @ 252 bbl 9400 9500— 10000— _c 0000—t c d N co • 10500— 10 12 14 16 17 Density Baker Hughes 4 06/18/13 Baker Hues CemFACTS Program Version 51 •�•■ Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 ECD @ Critical Depths 15— 20 i i I 1 1 I 1 I 15 —5000 —4000 15— 10— —10 —3000 a - 2 - c v, a. 07 o10— Ud m V) cc x - 0 0 w y o rd V L. U - a w N W - )00 5— —5 5— 1000 \ _ 0 20 40 55 Elapsed Time(min) Baker Hughes 5 06/18/13 ��•• Baker Hues CerFACTS Program Version 50 Job Number: BAKERCustomer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 —o MD=10897 ft, Volumes in bbl Design Actual Stage 252 252 Slurry Total 247 Return Total 40 40 01. Seal Bond 56 56 02. Cement -2500 00 03. Shut-Down 156 156 04. Displacement -5000 -7500 -10000 Baker Hughes 6 06/18/13 EauBaker Hues CemFACTS Program Version 50 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Wellbore Diagram 0 Drilling mud(0 ft) Seal Bond(7722 ft) I•Cement(9246 ft) Displacement(10817 ft) 2000— 2000 4000— 4000 R 6000— 6000 8000- 8000 10000 10000- 10702— 10897 0 1397 Offset, ft Baker Hughes 7 06/18/13 ��•• Baker Hues CemFACTS Program Version lit Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid Displacement/Placement Standoff(%) Effectiveness (%) 9496 ft Cement 100 � 100 100 100 . . 100 � : 100 � � ,,,74,7 100 �:. 100 100 ' 100 100 100 1 L10000 100 100 4 4 w 3 . 100 100 100 100 i 100 100 'k :; 100 4 ` 100 100 100 ,- � 100 100 i 100 �' 100 _ 100 */ 100 100 „ , 100 ' 100 ,.k .. ,; 10897 ft 0 67 100 -180 0 180 Baker Hughes 8 06/18/13 ��• Baker Hues CerFACTS Program Version Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Disclaimer Notice Baker Hughes personnel will use good faith at all times in interpreting information, making recommendations, (either written, or oral) as to the type or amount of products, equipment or services to be furnished, the manner of performance, or in predicting results to be obtained. The recommendation and projections given are estimates based on calculations produced by a computer model including various assumptions regarding the well, reservoir and treatment. Due to the uncertainty of variable well conditions and the necessity of relying on facts and supporting services provided by the Customer and its other contractors, Baker Hughes hereby disclaims the accuracy of any chart interpretation, research, analysis,job recommendation or other data furnished by Baker Hughes. Such data shall include the attached report, any similar information provided electronically and any data generated through real-time monitoring. NO WARRANTY IS GIVEN CONCERNING THE EFFECTIVENESS OF THE PRODUCTS OR EQUIPMENT USED, RECOMMENDATIONS GIVEN OR SERVICES RENDERED. NO WARRANTIES, EXPRESS OR IMPLIED ARE MADE AND ALL SUCH WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABLITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY EXCLUDED AND DISCLAIMED BY BAKER HUGHES. Baker Hughes 9 06/18/13 • • BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Top of Liner Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 III • CEMENT JOB REPORT FAiiill NIN u �.R ES CUSTOMER BUCCANEER ALASKA OPERA DATE 25-SEP-13 FR.* 1001 1 01 5938 SERV.SUPV. CECIL J JONES LEASE&WELL NAME LOCATION 1COUNTY-PARISH-BLOCK KENAI LOOP 01.4-API 50133206180000 33-6N-11W Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG 0 TYPE OF JOB nal SIZE i L TYPE OF PLUGS IST-CSG.IIARDWARE . MECHANICAL BARRIERS MD WD HANGER TYPES &W ND IBridge I PackerPfug I 99009I PHYSICAL SL4JRRY PROPERTIES . . SACKS SLURRY SLURRY PUMP BbI OF WGT YLD WATER TIME BbI MIX MATERIALS FURNISHED BY BJ LAB REPORT NO. CEMENT PPG FT3 GPS HR:MIN SLURRY WATER Class G 145 15.8 1.18 4.96 30.4, 17.12 Displacement Fluid 9.6 90' Fresh Water 8.3 5 Fresh Water 8.3 3.26 Available Mix Water 500 BbI. Available Displ.Fluid 100 Bbl. TOTAL 1 128.661 17.12 HOLE TBG-CSG-D.P. COLLAR DEPTHS SIZE . NdERCE'ES ) nem - ID on WGT. , TYPE MD OW gime + SHOE FLOAT STAGE, 6.75 9883 2.151 2.875 10.4 DP 1816: 3.34 4 14 DP 8046 t LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP COMM WELL FLUID ID OD INSI,. .. TYPE MR.ND DRAMA TYPE i DEPTH TOP E.IM. WIZ THREAD TYPE _._....1 ., 6.9 7.63 29.71 94981 9301 Cement Retainer 9900 9870 9872 2 1502 BRINE 9.2 4.0 4.5 12.6 CSG 10897 9870 9872 DISPL VOLUME DISPL FLUID CAL PM ;CAL MAX PSI OP.MAXI MAX TBG PSI MAX CSG PSI MIX --- - VOLUME UOM TYPE WGT. BUMP PWG itt !t TO REV. SQ.PSI RATED Operator RATED Operator WATER 95.4 BBLS Displacement Fluid 9.6 Rig Circulation Prior to Job I Circulated Well: Rig X BJ Circulation Time: Circulation Rate: BPM Mud Density In: 9.6 LBS/GAL Mud Density Out: 9.6 LBS/GAL PV&YP Mud In: PV&YP Mud Out: Gas Present NO FX YES _ Units: Solids Present at End of Circulation: NO X YES Displacement And Mud Removal Displaced By: Rig BJ Amount Bled Back After Job: BBLS Returns During Job: NONE PARTIAL X FULL Method Used to Verify Returns: Cement Returns at Surface: YES j X, NO Were Returns Planned at Surface: X NO YES Pipe Movement ROTATION RECIPROCATION NONE UNABLE DUE TO STUCK PIPE Centralizers: X NO YES Quantity: Type: BOW RIGID Job Pumped Through: CHOKE MANIFOLD SQUEEZE MANIFOLD MANIFOLD NO MANIFOLD Plugs Number of Attempts by BJ: 1 Competition: Wiper Balls Used X NO YES Quantity: Plug Catcher Used: X NO YES Parabow Used: X NO YES Was There a Bottom: X NO YES Top of Plug: FT Bottom of Plug: FT Squeezes(Update Original Treatment Report for Primary Job) BLOCK SQUEEZE SHOE SQUEEZE TOP OF LINER SQUEEZE X PLANNED UNPLANNED Liner Packer. X NO YES Bond Log: 'X INO YES PSI Applied: Fluid Weight: LBS/GAL _ Casing Test(Update Original Treatment Report for Primary Job) Casing Test Pressure: 4800 PSI With 9.6 LBS/GAL Mud Time Held: 00 Hours 05 Minutes EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: RINIIMIP0rriodon. SEP-23-132305.38 Page 1 ;+fitX:k S • FARA CEMENT JOB REPORT BAKER _..... _ ., . .a .. HUGHES Shoe Test(Update Original Treatment Report for Primary Job) Depth Drilled out of Shoe: FT Target EMW: LBS/GAL Actual EMW: LBS/GAL Number of Times Tests Conducted: Mud Weight When Test was Conducted: LBS/GAL Problems Before Job(I.E.Running Casing,Circulating Wet,ETC) Problems During Job(I.E.Lost Returns,Equipment Failure,Bulk Delivery,Foaming,ETC) Transmission oil pressure on pump unit showing 240-275psi along with error code M1/M2 at console. Problems After Job(I.E.Gas at Surface,Float Equipment Failed,ETC) PRESSUREIRATE DETAIL E PLANATWN TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: 13.1 CREW X CO.REP. X HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 4800 PSI CIRCULATING WELL - RIG X BJ ? ( .__.___. 12:34 9-25-13 Arrive on location(C.Jones,J.Cress,C.Zoda,G.Gonzales,R. Selfridge). 12:39 Hold meeding with Joe the DSM. 13:04Hold rig up meeting with crew. 13:12 1_ Prep equipment for job. 1355 I Stand by 15:30 Hold safety meeting on rig floor. 16:13 1 '""Start Job'" 16:20 . Pick up brime and test rate shipped 16:21 I Unsting from packer 16:27 122 0 2 3 BRIM prime lines with 9.6 ppg brime. 16:34 600 0 0 0 BRIME Low psi test 16:37 4800 0 0 i,,..-_„�- 0 BRIM High psi test �� _ 16:43 4645 0 0 j 0 BRIME �(bleed off pressure. 16:43 0 0 0 1 0 BRIME (Sting in 16:45 1400 01 i3 BRIME i Start injection test @ lbpm pressure reached 1400 and broke back to 500psi 04:48 I 1000 0 4-1— 1 BRIME Increase rate to 3bpm pressure steady at 1000psi foil lbbl then jump to 1500psi 16:57 __l 1051 0 r 3[ -- 10!BRIME '10 bbl away of injection rate. r _ 17:00 I 1511 I 0 3 j 20 BRIME j pressure jumped at 11 bbl pumped into injection rate 17.03 1520 0 3 I 30 BRIME I Shut down at 30 bbl pumped @ 3bpm. 17:08 ( 0 0 F� 5' 18 H2O I Clean out brime from pumps and boss in prep for cmt job. 17:33 I 0 0 0 0 1120 r pick up clean water for mixing cmt. 17:37 I 1500 0 3 5 H2O Pump 5 bbl fresh water spacer ahead of curt. 17:40 0 0 0 t_ 0 H2O _!Pump operator reports transmission pressure is 100psi above normal. 17:410 0 0{, 0 H2O Inform company man of issues. 18:10 f 0 0 0 I 0 H2O After consulting with shop mechanic travel to shop to pick up proper filters and extra fluid(suspect filter clog). 18:24 ( 0 0 0 1 0 H2O Mechanic having trouble finding filter/Cal made to mobilize _ replacement unit as back up. 19:32 T 0 0 0 1 0 H2O 1Mechanic on location with items. 19:35 0 0 0 ' 0 1120 DSM Dave Reid informed/Rig stings in and breaks circulation. 20:06 930 0 3 5 H2O Sbbl fresh water spacer ahead of cmt. 20:12 28 0 0 0 CMT Batch up 15.8ppg cmt. 20:19 241 0 3 1 CMT Down hole with cmt. 20:23 848 0 3 10 CMT 10 bbl down hole. 20:26 697 0 3 20 CMT 20 bbl down hole. 20:33 90 0 2 32 CMT 32 bbl down hole Report Printed"n: afro ,'23't,,. Page 2 mos ill • (.. 11r CEMENT JOB REPORT BAKER , jHUGHES PRESSUREIRATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE ANNULUS RPM PUMPED TYPE TEST LINES 4800 PSI CIRCULATING WELL - RIG X 8.1 20:34 40 0 1.6 3.3 H2O 3.3bbl displacement spacer(fresh water). 20:39 53 0 3 1 BRIME displacement starts. 20:44 74 0 3 12.6 BRIME Brime Displacement 20:46 73 0 3 25.2 BRIME Brims Displacement 08:49 74 0 3 37.8 BRIME Brime Displacement 08:52 1 281 0 3 50.4 BRIME Brime Displacement 20:56 201 0 3 63 BRIME Brims Displacement 21:00 381 0 3' 76.6!BRIME Brime Displacement 21:04 970 0 3 68.2 BRIME Brims Displacement 09:09 2000 0 3 I 90 BRIME Shut down(total dispiscorrient 93.3 bbl) __— __._ _ 78 0 0 1 � 90 BRIME Rigunsting. hold safety meeting I wash up units. Thank you for giving BHI-PP the call? ____ PSI TO TEST BBL.CMT TOTAL PSI SPOT *nature: BUMPED BUMP FLOAT RETURNS! BBL. LEFT ON TOP OUT PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT ---e I eye".___._.„..-- Y N 0 Y N 0 0 0 Y N Ri vn+eo on SEP-25-13230,3 - Page 3 Row! 0 • Baker Hughes JobMaster Program Version 3.60 BAKER Job Number: 10011015938 Customer: Buccaneer HUGHES Well Name: Kenai Loop#1.4 Buccaneer Kenai Loop #1-4 4.5 Liner Squeeze FR:100110159393 10000 Prime Lines lbpm injection Low test II High Test 3bpm injection 1 I Shut down due to ....... 20;--- Overheated Trans. 20 ii 0. 0. 1 na Tv �IN l Clea MiBrimeo 5000# system = CU 1 Q tocn 5bb1 H2O Spr ' a p 10 i iF g � � I - i 1. \ * \ . 1 10 y , t____ _ _i ,..... . ,..__.I____ _ , \ , r_____ i , ,, , 1,1-4 -fli 1 J Ji _ i t, i 1 ii I ' , , 0 0 i-J ri , ,,. t. — it 1 0-r_ _...a A i i__ ' - 0 16:13:40 17:03:40 17:53:40 18:13:40 09/25/13 09/25/13 09/25/13 09/25/13 Baker Hughes Job Start: Wednesday,September 25,2013 11111 4110 Baker Hughes JobMaster Program Version 3.60 'At,1 Job Number: 10011015938 part 2 BAKER Customer: Buccaneer HUGHES Well Name: Kenai Loop#1-4 Buccaneer Kenai Loop#1-4 4.5 Liner Squeeze FR:10011015938 10000— 30 1 I I , 30 Batch Up Down Hole w/cmt _ Finish cmt 5bbl H2O spr 7 20— —20 Si .6 — ? — water displ 3.26bb1 — C 0. G ..... i6 7 ml 5000— m15 m tY – Brime displ 90bbl - 4 to T _ 0 — False Reading d to y C 0 m 10— — —10 Ct r End Displ iiiiiir\Sting — Out r1 19:42:49 20:32:49 21:22:49 09/25/13 09/25/13 09/25/13 Baker Hughes Job Start: Wednesday,September 25,2013 Operator Name: BUCCANEER ALASKA OPERATIONS LLC re.■ Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner Squeeze HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 9,883 ft Depth (MD) 9,883 ft Hole Size 6.75 in Liner Size/Weight 4 1/2in, 12.6 lbs/ft Pump Via Drill Pipe 2 7/8"O.D. (2.441" .I.D) 6.85 Casing 4 1/2" O.D. (3.958" .I.D) 12.6 Total Mix Water Required 694 gals Slurry Class G 140 sacks Density 15.8 ppg Yield 1.18 cf/sack Displacement Displacement Fluid 63 bbls Page 10 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Operator Name: BUCCANEER ALASKA OPERATIONS LLC V i Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2"Liner Squeeze HUGHES Date: September 23, 2013 Proposal No: 1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) I MEASURED I TRUE VERTICAL 6.875 CASING I 9,498 I 9,301 6.750 HOLE I 9,883 I 9,883 SUSPENDED PIPES DIAMETER (in) WEIGHT I DEPTH(ft) O.D. I.D. (lbs/ft) MEASURED TRUE VERTICAL 4.500 I 3.958 I 12.6 I 9,883 I 9,883 Drill Pipe 2.875(in) OD, 2.441 (in) 9,273 ft ID, 6.85 (lbs/ft) set @ Liner 4.5(in)OD, 3.958 (in) ID, 9,883 ft 12.6 (lbs/ft) set @ Depth to Top of Liner 9,273 ft Float/Landing Collar set @ 9,883 ft Mud Density 10.40 ppg Est. Static Temp. 153 ° F Est. Circ.Temp. 135 ° F VOLUME CALCULATIONS 225 ft x 0.1473 cf/ft with 0% excess = 33 cf 385 ft x 0.1381 cf/ft with 100% excess = 106 cf TOTAL SLURRY VOLUME = 139 cf = 25 bbls Report Printed on September 27 2013 3-.55 Pr' Page 1 1 Gr4117 Have more questions? You can find us at: http:/lwww.bakerhughes.com/products-and-services/pressure-pumping • Operator Name: BUCCANEER ALASKA OPERATIONS LLC ISM Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner Squeeze HUGHES Date: September 23, 2013 Proposal No: 1001161515E FLUID SPECIFICATIONS VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 139 / 1.18 = 140 sacks Class G Cement+ 0.005 lbs/sack Static Free + 1.2% bwoc BA-56 + 0.3% bwoc R-3 + 3% bwow Potassium Chloride + 0.5% bwoc EC-1 + 0.4% bwoc CD-32 + 1 gals/100 sack FP-6L+ 0.2% bwoc Sodium Metasilicate +44% Fresh Water Displacement 63.0 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.18 Amount of Mix Water (gps) 4.96 Amount of Mix Fluid (gps) 4.97 Report Printed on 27.2. 12 Gr4129 Page Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Rev. D r//' 411111West Coast Area Laboratory Repo.. 5-20-13 BAKER HUGHES Re•ort#: CMT037113B Client/Well Information: jMIIIIIIIIIIIMIIIII Company: Buccaneer Alaska District: Kenai Depth MD: 10897 Field: Kenai Loop Job Type: Liner Depth TVD: 10702 Well: KL 1-4 Hole Size: 6 3/4" BHST: 173 Prepared for: Pete Berga Casing Size: 4 1/2" BHCT 135 Submitted by: Ken Nix Cement: Class G Water: Fresh -Tap Tested b : Yarbrou•h Lot#: Alaska Date: 8/9/13 Slurr Desi.n: R-3 0.3 % BWOC A-9 (KCI) 3 % BWOW Base I Class G 100 I % EC-1 0.5 % BWOC FP-6L 1 dal/100sacl Additives CD-32 0.4 _% BWOC Static Free 0.005 lb/sack A-2(SMS) 0.2 % BWOC BA-56 1.2 % BWOC Slurry Properties: Density: 15.8 ppg Yield: 1.18 ft3/sack Mix Water: 4.952 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 60 rpm 30 rpm 6 rpm 3 rpmBingham PV YP Ambient Plastic 135 F 0 241 159.5 100.5 74 51 23.5 16 216 24 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0 Strength Fluid Loss: 28 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): Machine: Sponge 30 bc: 50 bc: 70 bc: 3:53 100 bc: 600 40000 100 540— 36000-7. 90— 480— 32000— 80 7. 420— 28000— 70--- . 360— n 24000— g 60 300= 20000 _ 50 _ 240— I 16000— 40 180-7' .i 12000-7I 30 -E,T _ vl _ - — _ 120 8000 20 _ _ _. - -. .... ...- _ O fr 60 = 4000_ 1O _� 0:00 0:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 Tim(HH:NTA) -tren•th Data: Temp 17:49 19:44 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 173 I F 50 psi 500 psi 1512 2965 400 1 8 --- 5000 360 -- 16 — 4500 ^" -- - 320 — 1 4 = 4-000 280 — 3500 1 2 —_ 240 — - 3000 1 0 — 200 — - 2500 O 8 — __r. 160 = _ 2000 6 120 — 1500 80 = 1134 1 1000 40 2 IT 500 - - - 0 0 0 - 0 1 2 24 36 45 Time (Hhl) Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon.Baker Hughes makes no warranty.express or implied.as to the accuracy of the data or of any calculations or opinons expressed herein.You agree that Baker Hughes shall not be liable for any loss or damage,whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. • i ri.i CONDITIONS BAKER HUGHES The services and products will be provided under the attached Baker Hughes Incorporated Worldwide Terms and Conditions. By requesting that Baker Hughes provide the services and products described herein, Customer accepts all of the terms and conditions of this proposal, including the attached Baker Hughes Incorporated Worldwide Terms and Conditions. In the event that Customer and Baker Hughes have executed a Master Services Agreement covering the services and products to be provided, such Master Services Agreement shall govern in place of the Baker Hughes Worldwide Terms and Conditions. Report Printed on: SEP-27-13 03:55 Gr4175 s • NOTE:THIS AGREEMENT CONTAINS PROVISIONS THAT INDEMNIFY AND/OR RELEASE THE INDEMNIFIED AND/OR RELEASED PARTY FROM THE CONSEQUENCES OF ITS OWN NEGLIGENCE r AND OTHER LEGAL FAULT. • • • ri.II BAKER TERMS AND CONDITIONS HES• Worldwide • Orders for rental equipment("Equipment"),services("Services"),and the supply or sale of products,chemicals,or NOTWITHSTANDING PARAGRAPH B.ABOVE,SHOULD CUSTOMER FAIL TO RECOVER SUCH TOOLS equipment("Products')to be provided by Baker Hughes Incorporated through its direct or indirect subsidiaries(in each LOST IN THE WELL,OR SHOULD SUCH TOOLS BECOME DAMAGED IN THE WELL,OR DAMAGED case such subsidiary is referred to herein as"BHI"and shell be severally liable for all obligations of PHI herein arising DURING RECOVERY,CUSTOMER SHALL REIMBURSE BHI FOR THE COST OF REPAIRING ANY TOOLS from or related to the order)to its customers(each a"Customer")ere subject to acceptance by BHI,and any orders so SO DAMAGED,OR THE REPLACEMENT VALUE OF ANY SUCH TOOLS THAT ARE LOST OR NOT accepted will be governed by the terms and conditions stated herein and any additional terms proposed or agreed to in REPAIRABLE. writing by an authorized representative of BHI(these terms end conditions and any such additional terns collectively referred to herein es the"Agreement"). FURTHER,NOTWITHSTANDING PARAGRAPH B.ABOVE,ALL RISKS ASSOCIATED WITH LOSS OF OR DAMAGE TO TOOLS WHILE IN THE CUSTODY OR CONTROL OF CUSTOMER OR DURING f.PAYMENT TERMS TRANSPORTATION ARRANGED BY OR CONTROLLED BY CUSTOMER,SHALL BE BORNE BY Unless alternate payment fence are specified or approved by the BHI Credit Department,all charges billed by PHI must CUSTOMER. be paid within thirty(30)days of the date of invoice.For invoices unpaid after thirty(30)days,at BHI's option,discounts from list price may be revoked and interest may be charged at the rate of ten percent(10%)per annum unless such rate E.NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT TO THE CONTRARY,CUSTOMER contravenes local'law in which case the interest will accrue at the maximum rate allowed by law.Operating,production SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST or well conditions that prevent satisfactory operation of Equipment,Services or Products do not relieve Customer of its ANY AND ALL CLAIMS ASSERTED BY OR IN FAVOR OF ANY PERSON,PARTY,OR ENTITY(INCLUDING payment responsibility. PHI INDEMNITEES)ARISING OUT OF OR RELATED TO:(I)LOSS OF OR DAMAGE TO ANY WELL OR HOLE(INCLUDING BUT NOT LIMITED TO THE COSTS OF RE-DRILL AND SIDETRACK),(II)BLOWOUT, 2. CANCELLATION AND RETURNS FIRE,EXPLOSION,CRATERING OR ANY UNCONTROLLED WELL CONDITION(INCLUDING BUT NOT Products. Orders for Products that are subject to cancellation after acceptance by BHI,but before delivery,will be LIMITED TO THE COSTS TO CONTROL A WILD WELL AND THE REMOVAL OF DEBRIS),(Ill)DAMAGE TO subject to a restocking charge of at least twenty-five percent(25%),plus any packing and transportation costs incurred ANY RESERVOIR,GEOLOGICAL FORMATION OR UNDERGROUND STRATA OR THE LOSS OF OIL, before delivery.Products specially built or manufactured to Customer specifications,or orders for substantial quantities WATER OR GAS THEREFROM,(IV)THE USE OF BHI INDEMNITEES'RADIOACTIVE TOOLS OR ANY manufactured specially for Customer,may not be cancelled. CONTAMINATION RESULTING THEREFROM(INCLUDING BUT NOT LIMITED TO RETRIEVAL OR CONTAINMENT AND CLEAN-UP),(V)POLLUTION OR CONTAMINATION OF ANY KIND INCLUDING BUT Products may be returned for credit only with prior written authorization from BHI.Such Products must be unused,in NOT LIMITED TO THE COST OF CONTROL,REMOVAL,CLEAN-UP AND REMEDIATION,OR(VI)DAMAGE reusable condition,and with original unopened containers.Credit will be issued for the quantity returned at the original TO,OR ESCAPE OF ANY SUBSTANCE FROM,ANY PIPELINE,VESSEL OR STORAGE OR PRODUCTION purchase price,less a restocking charge of at least twenty-five percent(25%)and any actual packing and transportation FACILITY. costs incurred by BHI.No credit will be given for shipping charges incurred by Customer. F.CUSTOMER ACKNOWLEDGES THAT CUTTINGS AND WASTE REMAIN CUSTOMER'S Equipment/Services:In the event Customer cancels an order for Services,Customer shall be liable for all costs incurred RESPONSIBILITY.CUSTOMER SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES by BHI in the mobilization/demobilization related thereto,and any other reasonable costs incurred by BHI incident to such HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS,ASSERTED BY OR IN FAVOR OF ANY PERSON cancellation.In the event Customer cancels an order for Equipment,Customer shall be liable for any transportation OR ENTITY ARISING OUT OF OR RELATED TO THE TRANSPORTATION,STORAGE,TREATMENT, costs incurred by BHI in the mobilization/demobilization of the Equipment.In addition,a restocking charge of at least DISPOSAL OR HANDLING OF CUTTINGS AND WASTE,INCLUDING,WITHOUT LIMITATION, twenty-five percent(25%)of the original Equipment order may be applied at BHI's sole discretion. CONTAMINATION OF,OR ADVERSE EFFECTS ON THE ENVIRONMENT OR ANY FORM OF PROPERTY, OR ANY VIOLATION OR ALLEGED VIOLATION OF STATUTES,ORDINANCES,LAWS,ORDERS,RULES 3.THIRD-PARTY CHARGES TAXES AND REGULATIONS(INCLUDING,WITHOUT LIMITATION,ALL CLAIMS UNDER THE COMPREHENSIVE Customer shall pay all third-party charges,in compliance with BHI's current price list,and any sales,use,rental or other ENVIRONMENTAL RESPONSE,COMPENSATION,AND LIABILITY ACT("CERCLA"),42 U.S.C.§§9601 ET taxes that may be applicable to transactions hereunder.Customer shall pay all applicable customs,excise,import and SEQ.,OR OTHER APPLICABLE STATUTES OR REGULATIONS). other duties unless otherwise agreed to in writing by an authorized representative of BHI.Customer shall provide necessary import licenses and extensions thereof. G.CUSTOMER SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS FOR CONSEQUENTIAL DAMAGES ASSERTED BY OR IN FAVOR OF ANY 4.RISK OF LOSS AND TITLE CONSIGNMFNT STORAGF MEMBER OF CUSTOMER INDEMNITEES.PHI SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD Unless otherwise agreed to in writing between BHI and Customer:(i)for Product sales within the United States of CUSTOMER INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS FOR CONSEQUENTIAL America,title and risk of loss shall pass to Customer as soon as the Products depart BHI's point of origin;and(ii)for DAMAGES ASSERTED BY OR IN FAVOR OF ANY MEMBER OF BHI INDEMNITEES. Product sales outside the United States of America,INCOTERM 2010"CPT"shall apply with the following exception: TITLE AND RISK OF LOSS REMAIN WITH BHI UNTIL THE PRODUCTS REACH THE PORT OF ENTRY.For H.In the event this agreement is subject to the indemnity or release limitations in Chapter 127 of the Texas Civil Products provided on consignment,the risk of loss shall pass to Customer as soon as the Products depart BHI's point of Practices and Remedies Code(or any successor statute),and so long as such limitations are in force,each party origin;however,the title shall remain with BHI until the Product is used by Customer. covenants and agrees to support the mutual indemnity and release obligations contained in Paragraphs B.and C.above by carrying equal amounts of insurance(or qualified self-insurance)in an amount not less than U.S. In the event BHI agrees to store Products after title passes to Customer,the risk of loss shall remain with Customer.If $5,000,000.00 for the benefit of the other party as indemnitee. any such Products remain on BHI's premises for more than two(2)years from the date initially placed in storage,title shall revert back to BHI,and PHI may resell or scrap any such Products with no liability to Customer for any proceeds I.THE EXCLUSIONS OF LIABILITY,RELEASES AND INDEMNITIES SET FORTH IN PARAGRAPHS B. generated therefrom. THROUGH G.OF THIS ARTICLE 5,AND ARTICLES 6 AND 10,SHALL APPLY TO ANY CLAIM(S)WITHOUT REGARD TO THE CAUSE(S)THEREOF INCLUDING BUT NOT LIMITED TO PRE-EXISTING CONDITIONS, 5. LIABILITIES,RELEASES AND INDEMNIFICATION: WHETHER SUCH CONDITIONS BE PATENT OR LATENT,THE UNSEAWORTHINESS OF ANY VESSEL OR A.In this Agreement(i)"PHI Indemnitees"means BHI,its parent,subsidiary and affiliated or related companies;its VESSELS,IMPERFECTION OF MATERIAL,DEFECT OR FAILURE OF PRODUCTS OR EQUIPMENT, subcontractors at any tier;and the officers,directors,employees,consultants,and agents of all of the foregoing;(ii) BREACH OF REPRESENTATION OR WARRANTY(EXPRESS OR IMPLIED),ULTRAHAZARDOUS "Claims"means all claims,demands,causes of action,liabilities,damages,judgments,fines,penalties,awards,losses, ACTIVITY,STRICT LIABILITY,TORT,BREACH OF CONTRACT,BREACH OF DUTY(STATUTORY OR costs,expenses(including,without limitation,attorneys'fees and costs of litigation)of any kind or character arising out OTHERWISE),BREACH OF ANY SAFETY REQUIREMENT OR REGULATION,OR THE NEGLIGENCE, of,or related to,the performance of or subject matter of this Agreement;(iii)"Consequential Damages"means any GROSS NEGLIGENCE,WILLFUL MISCONDUCT,OR OTHER LEGAL FAULT OR RESPONSIBILITY OF ANY indirect,special,punitive,exemplary or consequential damages or losses(whether foreseeable or not at the date of this PERSON,PARTY,OR ENTITY(INCLUDING THE INDEMNIFIED OR RELEASED PARTY),WHETHER SUCH Agreement)under applicable law and damages for lost production,lost revenue,lost product,lost profit,lost business, FORM OF NEGLIGENCE BE SOLE,JOINT OR CONCURRENT,ACTIVE OR PASSIVE. lost business opportunities,or charges for rig time,regardless of whether the same would be considered direct,indirect, special,punitive,exemplary or consequential damages or losses under applicable law;(iv)"Customer Indemnitees" J.REDRESS UNDER THE INDEMNITY PROVISIONS SET FORTH IN THIS ARTICLE 5 SHALL BE THE means Customer,its parent,subsidiary and affiliated or related companies;its co-lessees,co-owners,partners,joint EXCLUSIVE REMEDIES AVAILABLE TO THE PARTIES HERETO FOR THE CLAIMS COVERED BY SUCH operators and joint venturers;its client or customer if it is not the end user of the Equipment,Services,or Products;its PROVISIONS. other contractors at any tier;and the officers,directors,employees,consultants,and agents of all of the foregoing;(v) "Cuttings and Waste"means any drill cuttings and associated muds,waste or materials from the well arising from or 6.DIRECTIONALDRILLING processed pursuant to this Agreement;and(vi)"Tools"means Equipment and any of PHI Indemnitees'instruments, Customer shall furnish BHI with a well location plan(certified by Customer as correct)setting out the surface equipment,or tools. location of the well,the lease,license,or property boundary lines,and the bottom hole location of Customer's directionally drilled well.If,in the course of drilling the well,it becomes evident to PHI that the certified plan is in B.BHI SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD CUSTOMER INDEMNITEES HARMLESS FROM AND error,PHI shall notify Customer of the error,and Customer shall be responsible to regulate all directional drilling AGAINST ANY AND ALL CLAIMS ARISING OUT OF OR RELATED TO(I)PERSONAL OR BODILY INJURY,ILLNESS, factors so that Customers well bottom hole location will be situated on Customer's property,license,or leasehold SICKNESS,DISEASE OR DEATH OF ANY MEMBER OF PHI INDEMNITEES,AND(II)LOSS,DAMAGE OR at total depth of the well being drilled.CUSTOMER SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD PHI DESTRUCTION OF REAL OR PERSONAL PROPERTY,WHETHER OWNED,LEASED,OR CHARTERED,OF ANY INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS ARISING OUT OF,OR RELATED TO, MEMBER OF PHI INDEMNITEES. SUBSURFACE TRESPASS ARISING OUT OF DIRECTIONAL DRILLING OPERATIONS OR OTHER OPERATIONS PERFORMED BY PHI INDEMNITEES OR CUSTOMER INDEMNITEES. C.CUSTOMER SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS ARISING OUT OF OR RELATED TO(I)PERSONAL OR BODILY INJURY,ILLNESS, 7.CUSTOMER WARRANTY/BINDING AUTHORITY SICKNESS,DISEASE OR DEATH OF ANY MEMBER OF CUSTOMER INDEMNITEES,AND(II)LOSS,DAMAGE OR If Customer is not the sole owner of the mineral interests,the well or the field,Customer's request for Services, DESTRUCTION OF REAL OR PERSONAL PROPERTY,WHETHER OWNED,LEASED,OR CHARTERED,OF ANY Equipment or Products shall constitute Customer's warranty that Customer is the duly constituted agent of each MEMBER OF CUSTOMER INDEMNITEES. and every owner and has full authority to represent the interests of the same with respect to all decisions taken throughout the provision of any Services,Equipment or Products hereunder.CUSTOMER SHALL RELEASE, D.SHOULD TOOLS BECOME LOST OR DAMAGED IN THE WELL OR HOLE WHEN PERFORMING OR DEFEND,INDEMNIFY AND HOLD PHI INDEMNITEES HARMLESS FROM AND AGAINST ALL CLAIMS ATTEMPTING TO PERFORM THE SERVICES HEREUNDER,IT IS UNDERSTOOD THAT CUSTOMER SHALL MAKE RESULTING FROM THE ALLEGATION BY ANY PERSON OR ENTITY THAT CUSTOMER HAS EVERY EFFORT TO RECOVER THE LOST OR DAMAGED TOOLS AT ITS SOLE COST.CUSTOMER SHALL MISREPRESENTED OR LACKED SUFFICIENT AUTHORITY TO REPRESENT SUCH PERSON OR ENTITY ASSUME THE ENTIRE RESPONSIBILITY FOR FISHING OPERATIONS IN THE RECOVERY OR ATTEMPTED AS WARRANTED BY CUSTOMER IN THIS ARTICLE. RECOVERY OF ANY SUCH LOST OR DAMAGED TOOLS.NONE OF PHI'S EMPLOYEES ARE AUTHORIZED TO DO ANYTHING WHATSOEVER,NOR SHALL ANY OF BHI'S EMPLOYEES BE REQUIRED BY CUSTOMER TO DO 8.ACCESS TO WELL AND WELL SITE STORAGE ANYTHING,OTHER THAN CONSULT IN AN ADVISORY CAPACITY WITH CUSTOMER IN CONNECTION WITH With respect to onshore and offshore operations,Customer shall provide at its expense adequate means of SUCH FISHING OPERATIONS. transportation required for Tools,Products and PHI personnel to gain access to or return from a well site,and Rev.1 January Report Printed on: SEP-27-13 03:55 Gr4175 • shall obtain at Customer's expense all permits,licenses or other authorization required for BHI to enter upon work PRODUCTION FORECASTS AND RESERVE ESTIMATES,FURNISHED BY BHI TO CUSTOMER areas for the purposes contemplated.When necessary to repair roads or bridges,or to provide transportation to HEREUNDER),AND CUSTOMER HEREBY AGREES TO RELEASE,DEFEND,INDEMNIFY AND HOLD BHI move Tools,Products or BHI personnel,such shall be arranged and paid for by Customer. INDEMNITEES HARMLESS FROM ANY CLAIMS ARISING OUT OF THE USE OF SUCH INTERPRETATIONS AND/OR RECOMMENDATIONS. Customer shall provide proper storage space at the well site,meeting all applicable safety and security requirements and consistent with good industry practices,for the Tools and Products,including,without limitation,all explosive and BHI will endeavor to transmit data to Customer as accurately and securely as practicable in accordance with radioactive materials. current industry practice.Notwithstanding the foregoing,BHI does not warrant the accuracy of data transmitted by electronic processes and will not be responsible to Customer for accidental or intentional interception of such data 9.RADIOACTIVE SOURCES by others. Radioactive sources which may be used in BHI's'Services are potentially dangerous.Customer agrees to comply with all applicable governmental regulations goveming the use and handling of radioactive sources.In the event a BHI does not represent or warrant that the Products are or will be compliant with the requirements of REACH(the radioactive source becomes stuck in a well,Customer,at Customer's sole Ask and expense will make a reasonable Registration Evaluation Authorisation and Restriction of Chemicals Regulation 1907/2006,as amended)and all attempt to recover such radioactive source in accordance with 10 C.F.R§39.15(0)(1)-(4)or other applicable implied warranties as to compliance with REACH("REACH Compliance")are hereby excluded to the fullest extent regulations and use special precautions to prevent damaging the source during recovery operations. If the source permitted by law.Without prejudice to the foregoing,BHI shall use reasonable endeavors to obtain or maintain cannot be recovered,Customer,at Customer's sole risk and expense,will isolate the radioactive material by REACH Compliance in respect of the Products where required by law,unless it is Customer's responsibility to cementing it in place or by other means consistent with 10 C.F.R§39.15 or other applicable statutes or regulations. obtain or maintain REACH Compliance or any non-compliance is caused by any act or omission of Customer.In the event BHI receives written notice from any competent authority,or in its reasonable opinion decides,that any 10.WARRANTY of the Products are not or will not become REACH Compliant,it shall inform Customer in writing within a A.Services; BHI warrants that the Services shall conform to the material aspects of the specifications agreed to in reasonable time and may suspend any further deliveries of the relevant Products and/or terminate the Order. writing by BHI and Customer.In the event that the Services fail to conform to such specifications,BHI shall re- Customer shall promptly provide such information to BHI as may be required in order to obtain and maintain perform that part of the non-conforming Services,provided BHI is notified thereof in writing by Customer prior to REACH Compliance in respect of the Products and shall comply with its obligations under REACH. BHI's departure from the work site. THIS ARTICLE 10 SETS FORTH CUSTOMER'S SOLE REMEDIES AND BHI'S ONLY OBLIGATION WITH B.Equipment:BHI warrants that the Equipment will be of the types specified by and agreed to in writing by BHI and REGARD TO DEFECTIVE OR NON-CONFORMING SERVICES,EQUIPMENT OR PRODUCTS.EXCEPT AS IS Customer,and will be in good operating condition.Liability for loss or damage to Equipment is set forth in Article 5. OTHERWISE EXPRESSLY PROVIDED PURSUANT TO THE PROVISIONS OF THIS ARTICLE 10,BHI MAKES NO WARRANTY OR GUARANTEE OF ANY KIND,EXPRESS OR IMPLIED,INCLUDING NO IMPLIED C.Products:(Excluding drill bits,electric submersible pumps and associated cable and surface equipment,specialty WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,REGARDING ANY chemical Products and specialty Products):BHI warrants that the Products shall conform to BHI's published SERVICES PERFORMED OR EQUIPMENT OR PRODUCTS SUPPLIED BY BHI HEREUNDER.IN NO EVENT specifications or the specifications agreed to in writing by BHI and Customer.If any of the Products fail to conform to SHALL BHI BE LIABLE FOR RIG TIME INCURRED BY CUSTOMER INDEMNITEES AS A RESULT OF such specifications upon inspection by BHI,BHI,at its option,shall repair or replace the non-conforming Products DEFECTIVE OR NON-CONFORMING SERVICES,EQUIPMENT OR PRODUCTS. with the type originally furnished or issue credit to the Customer,provided BHI is notified thereof in writing within thirty(30)days after delivery of the particular Products. 11.LOST EQUIPMENT INDEMNITY BUY-BACK In some locations,lost equipment indemnity buy-beck("LEIB")is available for some Tools.LEIB must be D.prig Bits'BHI warrants that the drill bits to be provided by BHI pursuant to this Agreement shall conform to BHI's purchased by Customer prior to the Tools leaving BHI's point of origin.Regardless of LEIB,Customer shall make published specifications. If any of the drill bits fail to conform t0 such specifications upon inspection by BHI,BHI,at every reasonable effort to recover BHI's Tools lost or damaged in a well or hole in accordance with Paragraph 5D. its option,shall repair er replace the non-conforming drill bits with the type originally furnished or issue credit to the BHI reserves the right not to offer LEIB at its sole discretion. Customer,provided BHI is notified thereof in writing within ninety(90)days from the date of shipment. 12.INSURANCE E.Electric Submersible Pumps and Associated Cable and Surface Equipment:BHI warrants that the electrical Upon written request,each party shall furnish to the other party certificates of insurance evidencing that adequate submersible pumps and associated cable and surface equipment to be provided by BHI pursuant to this Agreement insurance to support each party's obligations hereunder has been secured.To the extent of each party's release shall conform to BHI's published specifications. If any of the electric submersible pumps or associated cable or and indemnity obligations hereunder,each party agrees that all such insurance policies shall(i)be primary to the surface equipment fail to conform with such specifications upon inspection by BHI,BHI,at its option,shall repair or other party's insurance,(ii)include the other party,its parent,subsidiary and affiliated or related companies,its replace the non-conforming electric submersible pumps or associated cable or surface equipment with the type subcontractors and other contractors,and its and their respective officers,directors,employees,consultants and originally furnished,provided BHI is notified thereof in writing within the earlier of twelve(12)months from the date of agents as additional insured,end(iii)be endorsed to waive subrogation against the other party,its parent, installation or eighteen(18)months from the date of shipment.Warranty claims by Customer must be submitted to subsidiary and affiliated or related companies,its subcontractors and other contractors,and its end their respective BHI within sixty(60)days of the failure date of the electric submersible pumps or associated cable or surface officers,directors,employees,consultants and agents. equipment. 13.CHANGE OF DESIGN F.Specialty Chemical Products,BHI warrants that the specialty chemical Products to be provided by BHI pursuant BHI expressly reserves the right to change or modify the design and construction of any of its Products without to this Agreement shall,upon departure from BHI's point of origin,conform to the published physical and chemical obligation to furnish or install such changes or modifications on Products previously or subsequently sold. specifications established by BHI for each such Product.If any of the specialty chemical Products fail to conform to such specifications,BHI,at its option,shall replace the non-conforming specialty chemical Products with the type 14.PATENTS originally furnished or issue credit to the Customer,provided BHI is notified thereof in writing within thirty(30)days BHI warrants that the use or sale of Equipment or Products hereunder will not infringe valid patents of others by after the specialty chemical Products depart BHI's point of origin. reason of the use or sale of such Equipment or Products per se,and hereby agrees to hold CUSTOMER harmless against judgment for damages for infringement of any such patent,provided that Customer shall promptly notify G.Specialty Products:In the event BHI is to provide Products to Customer based upon Customer's specific request BHI in writing upon receipt of any claim for infringement,or upon the filing of any such suit for infringement, that BHI develop,manufacture,test or put to use Products that are intended to satisfy a unique need identified by whichever first occurs,and shall afford BHI full opportunity,at BHI's option and expense,to answer such claim or Customer and are not"standard"Products of BHI,Customer hereby recognizes and agrees that the specialty threat of suit,assume the control of the defense of such suit,and settle or compromise same in any way BHI sees Products being provided do not necessarily have or contain the same or similar characteristics as BHI's"standard" fit.BHI does not warrant that such Equipment or Products:(i)will not infringe any such patent when not of BHI's Products,including,but not limited to,a historical performance against which future performance can be measured. manufacture,or specially made,in whole or in part,to the Customer's design specifications;or(H)if used or sold in In developing,manufacturing,testing and putting to use any specialty Products,BHI will be relying upon information combination with other materials or apparatus or used in the practice of processes,will not,as a result of such and specifications provided by Customer relating to the unique needs of Customer.As such,BHI shall have no combination or use,infringe any such patent,and BHI shall not be table and does not hold Customer harmless for responsibility for the design,manufacture or engineering of any such specialty Products,even though BHI may have damages or losses of any nature whatsoever resulting from actual or alleged patent infringement arising pursuant participated in the development and manufacture of the specialty Products,or for any Customer-fumished materials, to(i)and(ii)above.THIS PARAGRAPH STATES THE ENTIRE RESPONSIBILITY OF BHI CONCERNING information and specifications.If,upon inspection by BHI,any of the specialty Products fail to meet the PATENT INFRINGEMENT specifications agreed to in writing by Customer and BHI,then BHI shall,at its option,repair or replace the non- conforming specialty Products with(i)the type originally furnished to Customer,or(ii)substituted Products having 15.CONFIDENTIALITY BHI's"standard"specifications and qualifications. Each party shall maintain all data and information obtained from the other party in strict confidence,subject only to disclosure required by law or legal process.In the event that BHI owns copyrights to,patents to,or has filed patent H.Discharoe Services:Except to the extent that BHI has agreed to provide its discharge compliance engineering applications on,any technology related to the Services,Products or Equipment furnished by BHI hereunder,and if services("Discharge Services")to Customer pursuant to this Agreement,BHI shall have no responsibility for BHI makes any improvements on such technology,then such improvements shall not fall within the confidentiality achievement of and cempliance with any specific oil retention or similar requirements mandated by any applicable obligations of BHI included herein,and BHI shall own all such improvements,including drawings,specifications, local,state or federal law or regulation.If Discharge Services are rendered by BHI and agreed oil retention or similar calculations and other documents. requirements are not met,then BHI shell,at its option,re-perform the Discharge Services,or provide a credit to Customer to cover any documented additional disposal costs incurred by Customer as a result of the nonconforming The design,construction,application and operation of BHI's Services,Equipment and Products embody proprietary Discharge Services,provided that such credit shall be limited to 3%of the amount charged for the nonconforming and confidential information.Customer shall maintain this information in strict confidence and shall not disclose it Discharge Services. to others,subject only to disclosure required by law or legal process.To the extent permissible by law,Customer shall not resell the Products or Equipment(or drawings related thereto)to others or reverse engineer or permit BHI's warranty obligations hereunder are non-transferrable and shall not apply if the non-conformity was caused by others to reverse engineer,for the purpose of manufacturing,similar Products or Equipment. (i)Customer's failure to properly store or maintain the Products or Equipment,(ii)abnormal well conditions,abrasive materials,corrosion due to aggressive Fluids or incorrect specifications provided by Customer,(Hi)unauthorized 16.LIENS.ATTACHMENTS AND ENCUMBRANCES alteration or repair of the Products or Equipment,(iv)the Products or Equipment are lost or damaged while on Customer grants to BHI a lien upon and a security interest in(i)any interest that Customer now owns or hereafter Customer's site due to Customer's or anythird party's negligence,vandalism or force majeure(including,but not acquires in the lands,leasehold interests,pipelines,pipeline right-of-ways,personal property and fixtures arising limited to,lightning),or(v)use or handling of the Products or Equipment by Customer in a manner inconsistent with out of,pertaining to,located on,or used in connection with the development of,the mineral property on which the BHI's recommendations.Further,BHI's warranty obligations shall terminate if Customer fails to perform its Services,Products,or Equipment were performed or installed(the"Mineral Property"),(ii)the oil and gas when obligations under this or any other Agreement between the parties. extracted from the Mineral Property,including the proceeds thereof,(iii)the contract rights,inventory and general intangibles pertaining to the Mineral Property,and(iv)any claim against any working interest owner of the Mineral All non-conforming Products shall be delivered to the service facility designated by BHI.All transportation charges Property arising from nonpayment of joint interest billings or lease operating expenses.This lien and security and removal and reinstallation charges related to the repair or replacement of non-conforming Products shall be interest shall be for the purpose of securing performance of Customer's obligations to BHI under this Agreement. borne by Customer.Any parts for which BHI provides replacement under this warranty shall become the property of Customer authorizes BHI to have filed a financing statement and any other instruments BHI determines to BHI.With regard to materials or equipment furnished by third party vendors and/or suppliers,BHI's liability therefor be necessary or appropriate to perfect the lien and security interest created hereby.Upon request,Customer shell shall be limited to the assignment of such third party vendor's or supplier's warranty to Customer,to the extent such execute any document determined by BHI to be necessary or appropriate to perfect this lien and security interest warranties are assignable.The warranty period for any repaired or replaced Products shall be only for the remainder under all applicable laws and the real property recording statutes of the state in which the Mineral Property is of the original warranty period. located.If BHI is unable to obtain proper execution of such documentation within a reasonable period of time after the request is made,then Customer hereby appoints BHI as Customer's true and lawful agent and attorney-in-fact, Interpretations,research,analysis,recommendations,advice or interpretational data(specifically including,without to execute all documents on its behalf,and to otherwise take such actions on its behalf,as BHI deems necessary limitation,any preliminary cuttings reinjection program and any engineering designs,geological studies or analyses, or appropriate,to perfect the lien and security interest created or contemplated hereby.This appointment is well programs,reservoir models,or drilling production optimization or management programs)("Interpretations coupled with an interest and may not be revoked for as long as any portion of Customer's obligations hereunder and/or Recommendations")furnished by BHI hereunder are opinions based upon inferences from measurements, remains outstanding. The lien and security interest created hereby are in addition to,and not in lieu of,any other empirical relationships and assumptions,and industry practice,which inferences,assumptions and practices are not liens and security interests now existing or hereafter coming into existence,and securing the performance of infallible,and with respect to which professional geologists,engineers,drilling consultants,end analysts may differ. Customer's obligations hereunder,whether voluntary or involuntary,including any liens arising by statute or Accordingly,BHI does not warrant the accuracy,correctness,or completeness of any such Interpretations and/or common law in favor of mechanics and/or meterialmen. Recommendations,or that Customer's reliance or any third party's reliance on such Interpretations and/or Recommendations will accomplish any particular results.CUSTOMER ASSUMES FULL RESPONSIBILITY FOR Should Customer commit a breach of any of the terms and conditions of this Agreement,be named as a debtor in THE USE OF SUCH INTERPRETATIONS AND/OR RECOMMENDATIONS AND FOR ALL DECISIONS BASED a bankruptcy proceeding,or become insolvent;should Customer,or any of its assets,be the subject of a THEREON(INCLUDING,WITHOUT LIMITATION,DECISIONS BASED ON ANY OIL AND GAS EVALUATIONS, receivership proceeding;or should any creditor or other person or entity attach or levy Customer's property or Rae.1 January 2012 Report Printed on: SEP-27-13 03:55 Gr4175 • equipment,BHI shall immediately have the right,without notice end without liability for trespass or damages,to BY FINAL AND BINDING ARBITRATION CONDUCTED IN ACCORDANCE WITH THE UNCITRAL ARBITRATION retake and remove any of its Products or Equipment wherever it may be found. CUSTOMER SHALL RELEASE, RULES(THE"RULES"). DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM ANY AND ALL LIENS AND ENCUMBRANCES AGAINST PRODUCTS OR EQUIPMENT FURNISHED HEREUNDER AND SHALL RETURN The Tribunal shall be composed of three arbitrators,with each party appointing one arbitrator,and the two arbitrators SAME PROMPTLY TO BHI FREE OF ANY LIENS OR ENCUMBRANCES. so appointed appointing the third arbitrator who shall act as the presiding arbitrator of the Tribunal(the"Tribunal").The appointing authority under the Rules shall be the London Court of International Arbitration.The language of the 17.FORCE MAJEURE arbitration shall be English.The seat of arbitration shall be London,England,and the proceedings shall be conducted If either party is unable by reason of Force Majeure to carry out any of its obligations under this Agreement,other and concluded as soon es reasonably practicable,based upon the schedule established by the Tribunal.Any monetary than obligations to pay money,then on such party giving notice and particulars in writing to the other party within a award shall be made in U.S.Dollars,free of any tax or other deduction,and shell include interest from the date of any reasonable time after the occurrence of the cause relied upon,such obligations shall be suspended."Force Majeure" breach or other violation of the Agreement to the date paid in full ata Floating rate of interest equal to the prime rate of shell include any event that is beyond the reasonable control of the party so effected including,without limitation, interest in effect at Citibank,N.A.,New York,U.S.A.,from time to time. acts of God,laws and regulations,government action,war,civil disturbances,hijack,piracy,criminal action bye third party,threats or acts of terrorism,strikes and labor problems,delays of vendors or carriers,lightening,fire,flood, B.For Services,Equipment or Products provided,or to be provided,by BHI in the Americas:THIS AGREEMENT washout,storm,breakage or accident to equipment or machinery,and shortage of raw materials.In the event that SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF any suspension due to Force Majeure exceeds ten(10)consecutive days,either party may terminate this Agreement OKLAHOMA,EXCLUDING CONFLICTS OF LAW AND CHOICE OF LAW PRINCIPLES.ANY DISPUTE, by written notice to the other party,and Customer shall be liable for demobilization end any other reasonable costs CONTROVERSY OR CLAIM("DISPUTE")ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR incurred by BHI incidental to such termination. THE FURNISHING OF EQUIPMENT,SERVICES OR PRODUCTS HEREUNDER SHALL BE RESOLVED BY FINAL AND BINDING ARBITRATION CONDUCTED IN ACCORDANCE WITH THE COMMERCIAL RULES OF 18.JNDEPFNDENT CONTRACTOR ARBITRATION OF THE AMERICAN ARBITRATION ASSOCIATION(THE"RULES").The tribunal shall be composed It is expressly understood that BHI is an independent contractor,end that neither BHI nor its principals,partners, of one(1)neutral arbitrator if the Dispute involves a maximum exposure of less than$1,000,000.If the parties are employees or subcontractors are servants,agents or employees of Customer. unable to agree on a neutral arbitrator,one will be appointed pursuant to the Rules.If the Dispute involves a maximum exposure equal to or in excess of$1,000,000,then the Tribunal shall consist of three(3)arbitrators,with each party In all cases where BHI's employees(defined to include BHI's and its subcontractors'direct,borrowed,special,or appointing one arbitrator,and the two arbitrators so appointed appointing the third arbitrator who shall act es Chair(the statutory employees)are covered by the Louisiana Workers'Compensation Act,La.R.S.23:102 et seq.,BHI and "Tribunal").The seat of arbitration shell be Houston,Texas,and the proceedings shall be conducted and concluded as Customer agree that all Services,Products and Equipment provided by BHI and BHI's employees pursuant to this soon as reasonably practicable,based upon the schedule established by the Tribunal. Agreement are an integral part of and are essential to the ability of Customer to generate Customer's goods, products,end services for the purpose of La.R.S.23:106(A)(1).Furthermore,BHI and Customer agree that C.For any arbitration conducted in accordance wrth Paragraph A.or B.above,the following shall apply:No award Customer is the statutory employer of BHI's employees for purposes of La.R.S.23:1061(A)(3). shall be made for Consequential Damages.Judgment upon the award rendered by the Tribunal pursuant hereto may be entered in,end enforced by,any court of competent jurisdiction.All statutes of limitation that would otherwise be 19.LAWS.RULES,REGULATIONS.AND EXPORT CONTROL applicable shall apply to the arbitration proceeding.Any attorney-client privilege and other protection against BHI and Customer agree to be subject to all laws,rules,regulations and decrees of any governmental or regulatory disclosure of privileged or confidential information,including,without limitation,any protection afforded the work- body having jurisdiction over the Services,Equipment or Products to be provided by BHI or the work site or that may product of any attorney,that could otherwise be claimed by any party shall be available to,and may be claimed by,any otherwise be applicable to BHI's or Customer's performance under this Agreement. such party in any arbitration proceeding.The parties shell treat all matters relating to the arbitration as confidential. Subject to each party's right to cooperate fully with the United States authorities,the parties understand and agree that Customer acknowledges that Equipment,Services,Products end/or related technical data covered by this this confidentiality obligation extends to information concerning the fact of any request for arbitration,any ongoing Agreement may be subject to U.S.and/or foreign trade controls.Customer agrees that it will not sell,re-export or arbitration,as well as all matters discussed,discovered,or divulged,(whether voluntarily or by compulsion)during the transfer Equipment,Products and/or related technical data except in full compliance with all governmental course of such arbitration proceeding.It is the desire of the parties that any Dispute is resolved efficiently and fairly requirements including but not limited to economic sanctions and export controls administered by the U.S. and the Tribunal shall act in a manner consistent with these intentions Department of Treasury,U.S.Department of Commerce and U.S.Department of State.Customer agrees to comply with all BHI requests for trade compliance information,statements,and other assurances including,without limitation, 21.ASSIGNMENT requests for End-User end Routed Transaction certifications.Any breach of this provision shall be deemed a BHI shall have the right to assign this Agreement to any of its subsidiaries,affiliated or related companies without the materiel breach of this Agreement and sufficient basis for BHI to reject any or all orders or to terminate the consent of Customer. Agreement. 22.GENERAL BHI reserves the right to refuse to fulfill any order or otherwise perform under this Agreement if BHI in its sole Failure of Customer or BHI to enforce any of the terms and conditions of this Agreement shall not prevent a discretion determines that such action may violate any law or regulation.Customer agrees that such refusal, subsequent enforcement of such terms and conditions or be deemed a waiver of any subsequent breach. Should any cancellation,or termination of the Agreement by BHI will not constitute a breach of BHI's obligations under this provision of this Agreement,ora portion thereof,be unenforceable or in conflict with governing country,state, Agreement and Customer hereby waives any and all claims against BHI related to such refusal,cancellation,or province,or local laws,then the validity of the remaining provisions,and portions thereof,shall not be affected by such termination. unenforceability or conflict,end this Agreement shall be construed as if such provisions,or portion thereof,were not contained herein.This Agreement contains ell representations of the parties and supersedes all prior oral or written 20.GOVERNING LAW AND ARBITRATION agreements or representations.Customer acknowledges that it has not relied on any representations other than those A.Except for Services,Equipment or Products provided,or to be provided,by BHI in North or South America(the contained in this Agreement.This Agreement shall not be varied,supplemented,qualified,or interpreted by any prior "Americas"):THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH course of dealing between the parties or by any usage of trade and may only be amended by an agreement executed ENGLISH LAW,EXCLUDING CONFLICTS OF LAW AND CHOICE OF LAW PRINCIPLES.ANY DISPUTE, by both parties.In the event that any conflict exists between the provisions of this Agreement and any other terms and CONTROVERSY OR CLAIM("DISPUTE")ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR conditions set forth in Customers purchase orders,field work orders,work tickets,invoices,statements,or any other THE FURNISHING OF EQUIPMENT,SERVICES OR PRODUCTS HEREUNDER SHALL BE RESOLVED type of memoranda or other documents used by Customer in the normal course of business,whether oral or written, the provisions of this Agreement shall govern. Rev.1 January 2012 Report Printed on: SEP-27-13 03:55 Gr4175 i • Operator: BUCCANEER ALASKA OPERATIONS LLC Vaal Well Name: KENAI LOOP#1-4 BAKER Date: September 23, 2013 HUGHES Proposal No: 1001161515G PRODUCT DESCRIPTIONS ASA-301 Additive used to reduce or eliminate free water and settling in cement slurries. BA-56 A gas migration additive that controls fluid loss, limits free water and provides excellent solids support. It is functional at low to moderate temperatures ranges. Barite-Sacked A naturally occuring mineral (Barium Sulfate). It is widely used as a weighting material in cement spacers and occasionally in cement slurries. It can yield a slurry density in excess of 19 lbs/gal. CD-32 A patented, free-flowing, water soluble polymer that is an efficient and effective dispersant for primary and remedial cementing. Class G Cement Intended for use as a basic cement from surface to 8000 ft as manufactured, or can be used with accelerators and retarders to cover a wide range of well depths and temperatures. EC-1 A proprietary product that provides expansive properties and improves bonding at low to moderate temperatures. FL-63 A non-retarding, non-viscosifying fluid loss additive particularly suited for use with coil tubing and/or close tolerance liner cementing. FL-63 is effective from low to high temperatures. Concentrations of 0.2%to 1.0% BWOC are typical. FP-6L A clear liquid that decreases foaming in slurries during mixing. Potassium Chloride A granular salt used to reduce clay swelling caused by water-base cementing fluids. R-3 A low temperature retarder used in a wide range of slurry formulations to extend the slurry thickening time. SealBond Spacer SealBondTM spacer systems combines the unique quality of a cement spacer system with the added advantage of curing lost circulation and wellbore strengthening properties. The viscosity as well as lost circulation and strengthening properties can be adjusted using the SealBond 25, 50 and 100. In severe lost circulation cases Sodium Metasilicate An accelerator used to decrease the thickening time of cement slurries. ^'==r 1iorad ort September 27.20133'55 FP.1 Page 15 -_ Have more questions?You can find us at: http://www.bakerh ughes.com/products-a nd-services/pressure-pumping • Operator: BUCCANEER ALASKA OPERATIONS LLC 1E111 Well Name: KENAI LOOP#1-4 BAKER Date: September 23, 2013 HUGHES Proposal No: 1001161515G PRODUCT DESCRIPTIONS (Continued) Static Free An anti-static additive used to prevent air entrainment due to agglomerated particles. Can be used in Cementing and Fracturing operations to aid in the flow of dry materials. Type I Cement A Portland cement designed for use to 6,000 Ft. Type I cement can be modified for use at greater depths. Type Page 16 Gr4'6 Have more questions?You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • _ Operator Name: BUCCANEER ALASKA OPERATIONS LLC EMI Well Name: KENAI LOOP#1-4 BAKER Date: September 23, 2013 HUGHES Proposal No: 1001161515G End of Report Gdsst r1 BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Well Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 • BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Surface Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision G r41 05 • • ( . ) FARO CEMENT JOB REPORT BAKER HUGHES CUSTOMER BUCCANEER ALASKA OPERA 'DATE 11-AUG-13 F.R.C 819510027 SERV.SUPV. JUSTIN BALDWIN LEASE&WELL NAME LOCATION COUNTY-PARISH-BLOCK KENAI LOOP*1-4-API 50133206180000 4 33-6N-11VV Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG X TYPE OF JOB Kenai Glacier Surface SIZE&TYPE OF PLUGS LIST-CSG-HARDWARE MECHANICAL BARRIERS MD ND A HANGER TYPES MD TVD MATERIALS FURNISHED BY BJ LAB REPORT NO. PHYSICAL SLURRY P OPERTIES SACKS SLURRY SLURRY WATER I PUMP Bb1 OF WGT YLDGPS I TIME Bbl MIX CCEMENT PPO FT I I N SLURRY WATER Seal Bond I 8.51 I2 Type I Lead CMT036813A 1 1,145 13.5i 1.68 8.82 342.2 240.56 Type I Tail 200 14.8. 1.34 6.34 47.90 30.21, Displacement Fluid r 52.63 Available Mix Water 600 Bbl. Available Displ.Fluid 60 Bbl. TOTAL I _466.731 270.77 HOLE TBG-CSG-D.P. COLLAR DEPTHS SITE . %EXCESS DEPTH . ID OD WGT. , TYPE MO TVD GRADE SHOE FLOAT STAGE 13.5 3003 9.95 10.75 45.5 CSG 3003 3000 ®.._..__..,_-----------_._ —_----- --._.._ .. . . . - ----...--- LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLUID 112 4P tWGT_ rel. llt0 BRAND&TYPE DEPTH TDP . BTM flIZE MEAD _ _rip—Ta WGT. 15 16 841 120 1201 21;1502 I WATER BASED ML 9.1 DISPL VOLUMEDISPL.FLUID CAL.PSI CAL MAX PSI OP. TBG PSI MAX CSG PSIMX � --. MAX MAX WATER VOLUME ` UOM TYPE WGT. BUMP PLUG TO REV. SQ.PSI RATED Operator RATED Operator , 52.6 BELS Displacement Fluid 13300 10640 3500 2800 Rig EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: No Plug To Bump PRESSURE/RATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MSI. PIPE ANNULUS 8PM PUMPED TYPE TEST LINES 2500 PSI CIRCULATING WELL - RIG X BJ „, 00:00 0 0 0 0 0 8-9-13 09:45 0 0 0 0 0 Safety Meeting At Shop u „A..„-., 11:00 0 0 0 0 0 Leave yard with bulk truck,and cement van 11:45 0 0 0 0 0 On location,spot equipment 16:00 0 0 0 0 0 Location rigged up,go back to shop 00:00 0 0 0 0 0 8-10-13 05:30 0 0 0 0 0 Yard Time 06:00 0 0 0 0 0 Crew at yard,possible 0900 call out 14:00 0 0 0 0 0 CaN in to rig,Not ready,send crew home to be ready for job late afternoon 17:30 I 0 0 0 0€0 Call in to rig,status update,possible 2100 call out,will call with 3 hour notice 00:00 [ 0 0 0' 0 0 8-11-13 00:30 0 0 0 0 0 Call out from rig,Justin Baldwin,Gonzo,J.Cross,N.Ooostman,D. Nuegnbauer 01:30 I 0 0 0' 010 Crew at yard -- 01:45 I 0 0 0 0 0 Pre Trip Meeting,Leave Yard 02:05 0 0 0 0 0 Arrive Location 02:10 0 0 0 0 0 Ta8k with Comany Man Jim Brown,Go over numbers,Stand by 05:30 0 0 0 0 0 Rig up Rig Floor 05:30 1 0 0 0 0 0 Rig Has to re-rig for top connection 05:53 0 0 0 0 0 Rig Floor Safety Meeting,Talk about job operations, Talked about who would call cement back to surface. Jim Brown,night Co.Man,said he Rawl Print.d on- AUG-'++J 1(.12, Page 1 Y4-. FAIN • • CEMENT JOB REPORT BALKIERHUGHES r PRESSURJ/I X'I DETAIL - EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 2500 PSI CIRCULATING WELL - RIG X BJ would calf cement to surface,and weigh prior to shutting down mixing. Rig mud scale and sample catchers rigged up. 06:30 0 0 0 0 0 Reset 3305/Re-Initalize Monitor 08:38 0 0 0 0 0 Pump 5 bbl water ahead 06:42 500 0 0 0 0 Pressure test line,500 low 06:44 2500 0 0 0 0 High Pressure Test 06:47 0 0 0 0 0 Bleed off pressure,fix leak _.,. 06:50 2500 0 0 0 0 Pressure test,2500 06:55 0 0 0 0 0 bleed off 06:56 0 0 0 0 0 batch up spacer,8.5#,24 bbls 06:57 0 0 0 0 0 Rig shut us down,investigate burning exhaust smell,Was the exhaust- from our unit blowing into rig 06:59 0 0 0 0 Resume Batch up �� 07:11 0 0 5 241 SPCR pump spacer 07:18 0 0 0 0 0 Shutdown,24.8 bbl spacer pumped away 07:18 0 0 0 0 0 Batch up Cement,Weigh Cement 13.5# 07:26 0 0 0 0 0 Pump downhole 07:30 0 0 0 0 0 Sample, 13.6# 07:37 330 0 4.5 53 CMT Downhole 07:43 290 0 4 83 CMT Downhole 13.5# 07:51 288 0 4 123 CMT Downhole 13.5# 07:56_ 224 0 4 135 CMT Downhole,13.6# 08:02 215 0 4 165 CMT Downhole, 13.5# 08:07 0 0 0 0 CMT Took Sample,13.5# 08:14 211 CMT Gauge hole bbl mark,no cement to surface 08:26 260 CMT Spacer coming back,rig opened to cellar 08:39 304 CMT Pump down,14.4#at tail end of slurry, Cement to surface called out by Night Co.Man Jim Brown 08:40 MUD i•Displace 08:42 435 0 4.9 6.5 MUD 'Displace 08:43 491 0 4.8 10 MUD Displace 08:44 0 1.5 MUD No mud supply from rig 08:47 j 668 0 4.1 25 MUD Mud supply corrected 08:54 0 0 0 50 MUD Shut down,Bleed off,check float,50bbl pumped per D-Tank,51.9bbi on meter 08:58 0 0 0 0 Float held,less than 1/4 bbl back _ 08:59 0 0 0 0 0 Wash out excess cement 09:10 0 0 0 0 0 Rig Down Meeting PSI TO TEST BBL.CMT TOTAL PSI SPOTCE , BUMPED BUMP FLOAT RETURNS/ BBL. LEFT ON TOP OUT PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT Y N Y N 60 383 o Y N Report Pnn1W on AUG-11-1116420E Page 2 i 1`"r" 0 ill Baker Hughes JobMaster Program Version 3.60 RAKER Customer: Number: 819510027 Customer: Buccaneer Alaska HUGHES Well Name: Kenai Loop KL#1-4 &10-13 Buccaneer KL#1-4 Surface Cement ! 5000--. -__. _ --------- - ------- r 10 ---20 Stop Job,Cement Back to Surface 40001, Batch Lead Slurry .. . 15 fmaure Test i . _ ! 1 50bbl Dbplacment Complete $' • S.a Batch Spacer Swap to Displacement ,o g Np \I r 1 tt -L 1I ,,, if C 10 Z a. 2000 $� N a ., ,..........„.„....... ,.... 1 (14 5 1000 ! , 0' I ir'�.. _ . , '� e 1 t 0:00:00:00 0:00".50.'00 0:01:40:00 0:02:30:00 3306 ET(min) Baker Hughes Job Start Sunday,August 11,2013 • Operator Name: BUCCANEER ALASKA OPERATIONS LLC 1/14111 Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4" Surface HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 3,000 ft Depth (MD) 3,003 ft Hole Size 13.5 in Casing Size/Weight 10 3/4in, 45.5 lbs/ft Pump Via Drill Pipe 5" O.D. (4.276" .I.D) 19.5 Total Mix Water Required 11,524 gals Weighted Spacer Seal Bond 24 bbls Density 8.5 ppg Cement Slurry Type I 1,306 sacks Density 13.5 ppg Yield 1.68 cf/sack Displacement Displacement Fluid 53 bbls Report Printed on September27,2013 3:55 PM Page 1 Gr4109 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC Irak III Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4" Surface HUGHES Date: September 23, 2013 Proposal No:1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 15.000 CASING I 120 I 120 13.500 HOLE I 3,003 I 3,000 SUSPENDED PIPES DIAMETER (in) 1 WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) I MEASURED I TRUE VERTICAL 10.750 I 9.950 I 45.5 I 3,003 I 3,000 Float/Landing Collar set @ 2,963 ft Mud Density 8.30 ppg Est. Static Temp. 88 ° F Est. Circ. Temp. 80 ° F VOLUME CALCULATIONS 120 ft x 0.5969 cf/ft with 0% excess = 71.5 cf 2,883 ft x 0.3637 cf/ft with 100% excess = 2097.2 cf 40 ft x 0.5400 cf/ft with 0% excess = 21.6 cf(inside pipe) TOTAL SLURRY VOLUME = 2190.4 cf = 390 bbls .on. September 27.20133.55 PM Page 2 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC Well Name: KENAI LOOP#1-4 BAKER Job Description: 10 3/4" Surface HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS Weighted Spacer 24.0 bbls Seal Bond + 5.7 lbs/bbl Barite - Sacked @ 8.5 PP9 VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry 2190 / 1.68 = 1306 sacks Type I Cement+0.005 lbs/sack Static Free + 0.8% bwoc CD-32 + 0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L+ 1% bwoc Sodium Metasilicate + 78.3% Fresh Water Displacement 52.6 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 13.50 Slurry Yield (cf/sack) 1.68 Amount of Mix Water (gps) 8.82 Amount of Mix Fluid (gps) 8.83 Report Printed on September 27 2013 3:55 PM 5,4129 Page 3 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping West Coast Area Laboratory Reply BAKER HUGHES Report#: CDB036813A Client/Well Information: Company: Buccaneer District: Kenai Depth MD: 3003 Field: Kenai Loop Job Type: Surface Depth TVD: 3000 Well: KL 1-4 Hole Size: 13.5 BHST: 88 • Prepared for: Pete Berga Casing Size: 10-3/4" BHCT 80 Submitted by: Joshua Herald Cement: Type I Water: Fresh Tested b : Jamison 1 Lot#: Date: 7/25/13 Slurry Design: Static Free 0.05 % BWOC Base Type I 100 I % FP-6L 1 gal/100sack Additives A-2 (SMS) 1 % BWOC CD-32 0.8 % BWOC ASA-301 0.1 % BWOC Slurry Properties: Density: 13.5 ppg Yield: 1.68 ft3/sack Mix Water: 8.815 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 6 rpm 3 rpm Bingham PV YP Ambient Plastic 84 86 76 71 62 33 27 21 55 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0.4 Strength Fluid Loss: 553 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): Machine: Sponge 30 bc: 50 bc: 70 bc: 3:59 100 bc: 600 40000-_ 100 540- 36000- 90-' 480- 32000- 80 420_ 28000- 70^.. ~ 360_ 24000- 80-.. / '. mJ 5 _ m _ If,300 : 5 20000- 50 _ ..- 1 240 Q 16000- 8 40 _ _... f180- 12000- I 30- - 120- 8000- QI p- _ __.. _ ,. 60- 4000- 10-.. .. .... .. -- _. ___ ____ - _ - 0 0 0 E ----''---+. 1 I I I I 0:00 1:00 200 3:00 400 5:00 Time(HH:N8.4) Compressive Strength Data: MMIIIIII ._ ,. _, .. . Temp 5:10 14:51 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 88 I F 50 psi 500 psi 236 401 751 1043 1169 400 20- 1800- 4- 360- 18- ,620- - , SAS -,....-- 320- 16- 1400- ' I i 260- 147 1260- - I 22 5 8 u-�._ .240- a 12- 11080- _ ---'- 12007 e 10- 2 900- 1 z -- -- ------- - 160- ! 8- t 120- L._ i 120-if 6- 1, 500-_ _41, 1 _ , 80- 0- 360- ' �`. -. , Os 40- 2- ,W- . 0 6 16 20 32 40 46 56 64 72 Tn.(Hj Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon.Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage, whether due to negligence or otherwise,arising out of or in connection with such data,calculations.or opinons. • • .g.■ BAKER HUGHES Proposal No: 1001161515E BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Intermediate Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 0 • (4, . CEMENT JOB REPORT , BAKER .. HFefilll UGHES CUSTOMER BUCCANEER ALASKA OPERA DATE 02_SEP_13 F.R.B 10011010467 SERV.SUPV. JOSH H PAYNE LEASE&WELL NAME LOCATION COUNTY-PARISH-BLOCK KENAILOOP#1d-API 50133206180000 33-6N-11W Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG# TYPE OF JOB Kenai Glacier Intermediate SIZE&TYPE OF PLUGS --• LIST-CSG-HARDWARE MECHANICAL BARRIERS MD TVD J HANGER TYPES MD TVD dart plug 700-LAP-PVTS Float Collar, 7-5/8 ii DN stage tool DN tool Cement PIug,Rubber,Top 7 Float Shoe 7-5/8-8rd I PHYSICAL SLURRY PROPERTIES SACKS SLURRY SLURRY WATER PUMP BbI OF WGT YLD GPS TIME Bbl MIX MATERIALS FURNISHED BY BJ LAB REPORT NO. CEMENT PPG FT HR:MIN SLURRY WATER Seal Bond 037013c 10.3 30 Class G Slurry 037013c 1,191 15.8 1.15 4.92 06:10 244.44 139.51 1 Displacement Fluid 432.34 Available Mix Water 585 Bbl. Available Displ.Fluid 385 BbI. TOTAL I 706.771 139.51 HOLE TBG-CSG-D.P. COLLAR DEPTHS OD WGT. TYPE MD TVD . GRADE SHOE Flak,' STAGE$� 'X EXCESS i )5lP�i ID Fla, 9.875 40 9496 6.875 7.625 29.7 CSG 9496 9301 C-75 9498 9418 1 LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLUID ID , OP , TI. MA , MD. ND_ BRAMt2_A_TYPE DEPTH TDP ELM S THREAD TYPE Pl_GT 10.110.75 46.CSG 3003 3003 0 0 7.625 BUTT WATER BASED ML 9.6 DISPL VOLUME DISPL.FLUID CAL.PSI CAL MAX PSI OP.MAX MAX TBG PSI MAX CSG PSI MIX VOLUME UOM TYPE WGT. BUMP PLUG TO REV. SQ.PSI RATED Operator RATED Operator WATER 432.3 BBLS Displacement Fluid 9 1100 0 0 0 0 6450 5160 rig EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: PRESSUREIRATE DETAIL EXPLANATION TIME it PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. f PIPE ANNULUS BPM PUMPED TYPE TEST LINES 3000 PSI —_ CIRCULATING WELL - RIG X BJ 06:05 0 0 0 0 0 company man called 08:30 0 0 0 0 0 yard -- 10:15 i 0 0 0 0 0 arrive on location 10:20 1 0 0 0 0 0 safety meeting 10:30 0 0 0 0 0 make sure pump is ready for the job 11:00 0 0 0 0 0 talk with company man about job 12:00 0 0 0 0 0 go over job procedure with tool hand 15:00 0 0 0 0 0 waiting on rig 18:30 0 00 0 0 gas kick 22:15 0 0 0 0 0 install head 22:45 0 00 0 0 safety meeting _ 23:00 3000 0 0 5 FRESH W, test lines 23:15 500 0 4 10 SEAL BON pump spacer 23:30 700 0 6 30 CLASS G pump 15.8 ppg slurry 23:45 730 0 6.3 120 CLASS G pump 15.8 ppg slurry 23:48 0 0 0 120 CLASS G shut down switch air compressors 00:05 743 0 7 190 CLASS G pumping 15.8 ppg slurry 00:20 0 0 0 245 CLASS G end cement 00:25 0 0 0 5 FRESH W, kick top plug 02:00 2100 0 0 432 9.6 PPG M bump plug 0 • -'I C. CEMENT JOB REPORT HUGHES PRESSUREIRATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE BbI.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 3000 PSI CIRCULATING WELL - RIG X BJ ,..1 -- 02:45 0 0 0 0 9.6 PPG M drop bomp load plug to close DN tool —� 03:20 750 0 .5 5 FRESH Wi DN tool opened at 750 psi 04:00 0 0 0 0 0 secure pump PSI TO TEST BBL.CMT TOTAL PS! SPOT SERVICE SUPERVISOR SIGNATURE: BUMPED BUMP FLOAT RETURNS! BBL LEFT ON TOP OUT r.--, PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT Y N 2100 Y N 400 600 0 Y N s `; 1-7V-4...S'VVim- ......... ... • 0 Baker Hughes JobMaster Program Version 3.80 Job Number: 10011010487 BAKER Customer: Buccaneer HUGHES Well Name: Mortal loop 4 -20 4000 ll snob 3000-- r1 _ II r start sweep achange air compressor aa m N 2000'---- 10 zs m to - c m O. o f 1000.- _.__._t ! ,_____L 0 „....ii.„1\------ , i 1is[ y11rhid,L.,4""lk,"6"-,,,yer..000'+''.."4,4,".6.,4elei L 0 20 40 6080 85 Elapsed Time(min) Baker Hughes Job Start: Monday,September 02,2013 • i Operator Name: BUCCANEER ALASKA OPERATIONS LLC F'.■ Well Name: KENAI LOOP#1-4 BAKER Job Description: 7 5/8" Intermediate HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 9,301 ft Depth (MD) 9,496 ft Hole Size 9.875 in Casing Size/Weight 7 5/8 in, 29.7 lbs/ft Pump Via 7 5/8" O.D. (6.875" .I.D) 29.7 Total Mix Water Required 5,860 gals Weighted Spacer Seal Bond 30 bbls Density 10.3 ppg Slurry Class G Slurry 1,191 sacks Density 15.8 ppg Yield 1.15 cf/sack Displacement Displacement Fluid 432 bbls Report Prir; 355PM Page 4 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC Mall Well Name: KENAI LOOP#1-4 BAKER Job Description: 7 5/8" Intermediate HUGHES Date: September 23, 2013 Proposal No:1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 9.950 CASING I 3,003 I 3,000 9.875 HOLE I 9,496 I 9,301 SUSPENDED PIPES DIAMETER (in) 1 WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) I MEASURED I TRUE VERTICAL 7.625 I 6.875 I 29.7 I 9,496 I 9,301 Float/Landing Collar set @ 9,416 ft Mud Density 9.80 ppg Est. Static Temp. 157 ° F Est. Circ. Temp. 124 ° F VOLUME CALCULATIONS 4,496 ft x 0.2148 cf/ft with 40% excess = 1351.8 cf 80 ft x 0.2578 cf/ft with 0% excess = 20.6 cf(inside pipe) TOTAL SLURRY VOLUME = 1372.4 cf = 245 bbls Report Primed on: Se°. Page 5 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • Operator Name: BUCCANEER ALASKA OPERATIONS LLC 1/4111 Well Name: KENAI LOOP#1-4 BAKER Job Description: 7 5/8" Intermediate HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS Weighted Spacer 30.0 bbls Seal Bond + 19.5 lbs/bbl Potassium Chloride+ 92.3 lbs/bbl Barite-Sacked @ 10.3 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 1372 I 1.15 = 1191 sacks Class G Cement+0.005 lbs/sack Static Free +0.2% bwoc R-3+0.6% bwoc FL-63+ 0.3% bwoc CD-32 + 0.05% bwoc ASA-301 + 1 gals/100 sack FP-6L+43.7% Fresh Water Displacement 432.3 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.15 Amount of Mix Water (gps) 4.92 Amount of Mix Fluid (gps) 4.93 Report Printed on' September 27 2O 3="P",' Gr4129 Page 6 Have more questions? You can find us at: http:/Iwww.bakerhughes.com/products-and-services/pressu re-pumping Rev. D 1171i I 11 West Coast Area Laboratory Rep 5-20-13 BAKER HUGHES Resort#: CMT037013C Client/Well Information: Company: Buccaneer Alaska ( District: Kenai Depth MD: 9496 Field: Kenai Loop Job Type: Intermediate Depth TVD: 9301 Well: KL 1-4 Hole Size: 9 7/8" BHST: 157 Prepared for: Pete Berge Casing Size: 7 5/8" BHCT 124 Submitted by: Ken Nix Cement: Class G Water: Fresh-Tap Tested b : Yarbrough Lot#: Alaska Date: 8/9/13 Slurr Desi.n• 4 R-3 0.2 % BWOC ASA-301 0.05 % BWOC Base Class G 1001 % FL-63 0.6 % BWOC Additives CD-32 0.3 % BWOC FP-6L 1 )al/100sacl Static Free 0.005 lb/sack Density: 15.8 ppg Yield: 1.15 ft3/sack I Mix Water: 4.927 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 60 rpm 30 rpm 6 rpm 3 rpm Bingham PV YP Ambient Plastic 124 F 0 86 61.5 34.5 27 12.5 3.5 2 84 5 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg 0 Strength Fluid Loss: 44 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): Machine: Jack 30 bc: 50 bc: 70 bc: 6:10 100 bc: 380 1 32000 50 6- 266- TO E''' Zw66= 8 1 / - -- /100 7'II'120110 7 30 7: , 6666 p- - 066 166 300 4.66 6.00 0416 00 ,51.( 5.5 . , . tren•th Data: Temp 9:27 10:48 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 157 I F 50 psi 500 psi 838 2457 3015 - 20- 6000 7 6- 960- 16- 4500- : : 51--- -- - .. -.- -1 120- 18- 4000- . 260- 14- 1000- _ - - ♦- -. .. .._ - _..._. - - -- - 1200 1200 7, 10- 12500- 13- _ - u. '1607 F 6 5 • ; 666 I.120-1:, 6- 1500- -60- `- 1100 - 40 2 7 500- 0 O. 6410 10. 24410 32410 40:00 1100(14.4.1) Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage,whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. 0 0 Buccaneer Energy Well: Kenai Loop KL 1-4 CemFACTS Report Design Date: 6/18/13 Service Type: 7 5/8" Intermediate Customer Representative: Stephen Hennigan Baker Hughes Representative: Ken Nix v' 1 BAKER HUGHES Advancing Reservoir Performance ��■'� Baker Hues CemFACTS Program Version 59 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Service Information Design Date: 6/18/13 Customer: Buccaneer Energy Well: Kenai Loop KL 1-4 State: AK Customer Representative: Stephen Hennigan Service Type: 7 5/8" Intermediate Service District/Boat: Kenai Baker Hughes Representative: Ken Nix Well Description Well Depth: 94961 ft Shoe Depth: 9496ft Landing Collar Depth: 9416 ft Cement Top: 5000 ft Previous Shoe Depth: _ 3000 ft Surface Temperature: 55 °F Static BHT: 157 °F Circulating BHT: 124 °F Surface Line Length: _ 50 ft Surface Line ID: 1.750 in Cement Excess: Increase Hole Size(s) Hole Dia. From To in ft ft 9.950 0 3000 9.875 3000 9496 Casing OD ID Weight From To in in /bm/ft ft ft 7 5/8" 7.625 6.875 29.70 0 9496 Miscellaneous Treating Line Volume: 0 bbl Pipe Vol Above Collar: 432 bbl Pipe Vol Below Collar: 4 bbl Annulus Volume: 436 bbl Displacement Volume: 432 bbl Total Volume: 872 bbl Casing Wt(Air): 276250 lbf Casing Wt(Eff): 173411 lbf Wellbore Start End Hole Casing Casing Summary MD MD TVD ID OD ID ft ft ft in in in Cased 0 3000 2997 9.950 7.625 6.875 Open 3000 5000 4971 9.875 7.625 6.875 Open 5000 9496 9301 10.643 7.625 6.875 Baker Hughes 1 06/18/13 ��•• Baker Hoes CemFACTS Program Version f0 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluids ( 4 Total) Fluid 1 Type: Initial Mud Fluid Description: Drilling mud Gel Strength: 4.0 lbf/hft2 Plastic Viscosity: 9.0 cp Yield Point: 20.0 lbf/hft2 Density: 9.80 ppg Fluid 2 Type: Pre flush or Spacer Fluid Description: Seal Bond n: 0.6040 K: 0.7098 Ibf.s^n/hft2 Yield Point: 2.4 lbf/hft2 Density: 10.50 ppg Fluid Volume: 40 bbl Water: 100.0 % Water Volume: 40 bbl Net Height: 1046 ft Total Height: 1046 ft Top: 3954 ft Bottom: 5000 ft Displacement Rate: 4.00 bpm Contact Time: 10.0 min Mixing Rate: 4.00 bpm Fluid 2 Additives 10.0% 0.0 Ibm Fluid 3 Type: Cement Slurry(Slurry) Fluid Description: Cement n: 0.6799 K: 3.3300 lbf.s^n/hft2 Yield Point: 0.1 lbf/hft2 Density: 15.80 ppg Cement Yield: 1.1500 ft3/sack _ Total Cement: 1193 sacks Slurry Volume: 244 bbl Water: 4.91 gal/sack Water Volume: 140 bbl Excess: 40.0 % Excess: 0 ft Net Height: 4496 ft Total Height: 4496 ft Top: 5000 ft Bottom: 9496 ft Mixing Rate: 19.5 sack/min Mixing Rate: 4.00 bpm Baker Hughes 2 06/18/13 FAINBaker Fills CemFACTS Program Version 00 Baker Job Number: BAKERCustomer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid 3 Additives 0.0% i0.0, Ibm Fluid 4 Type: Displacement Fluid Description: Displacement Plastic Viscosity: 9.0 cp Yield Point: 20.0 lbf/hft2 Density: 9.80 ppg Fluid Volume: 432 bbl Water: 100.0 % Water Volume: 432 bbl Total Height: 9416 ft Top: 0 ft Bottom: 9416 ft Operating Schedule Segment Volume Rate Time Cum.Time bbl bpm min min Seal Bond 40 4.00 10.0 10.0 _ Cement 244 4.00 61.1 71.1 Shut-Down 0 0.00 15.0 86.1 Displacement 432 10.00 43.2 129.4 Flow Inner Outer Pump Fluid Rey. Qmin Ref. Behavior Dia Dia Rate Vel. No. Turb. Temp. in in bpm ft/min bpm °F Drilling mud 5.500 8.750 6.00_ 133.4 6031 12.17 Seal Bond 5.500 8.750. 6.00 133.4 56957 0.32 Cement 5.500 8.750' 6.00 133.4 4872 6.20 Displacement 5.500 8.750 6.00 133.4 353 32.86 5.500 8.750 6.00 133.4 129 49.37 5.500 8.750 12.00 266.7 14239 2.53 Summary Est.Max Disp. Rate: 13.00 bpm Slurries Mixing Time: 61.1 min Displacement Time: 43.2 min Net(From Cement Mixing): 119.4 min Total(From Start): 129.4 min Baker Hughes 3 06/18/13 ��•• Baker H*es CemFACTS Program Version Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Density Pore Den ECD Frac Den @ 717 bbl 3000 - �•� 4000 1 = 6000 CDt6 L 8000 1 8 10 12 14 16 17 Density Baker Hughes 4 06/18/13 FrailBaker Hoes CemFACTS Program Version Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 ECD @ Critical Depths 15 20 1 I 1 1 1 - — 000 15— 10 —3000 - f M Q. Csi Q 2 cooN c0 — a. 10 © .cu _ V) Q' i j - t0n V >= Q o V = w - a w u) - —2000 F,-- —5 5 —1000 0— 0 1 I 1 I 1 I I I 1 1 1 1 u 0 50 100 130 Elapsed Time (min) Baker Hughes 5 06/18/13 ��•■ Baker Hoes CemFACTS Program Version 00 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 70 MD=9496 ft, Volumes in bbl Design Actual Stage -1000 717 717 Slurry Total 709 Return Total 40 40 01. Seal Bond -2000 244 244 02. Cement = 0 0 03. Shut-Down 432 432 04. Displacement C-3000 -4000 =5000 -6000 17000 -8000 -9000 Baker Hughes 6 06/18/13 ��■ Baker Hoes Cern FACTS Program Version 003 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Wellbore Diagram 0 Drilling mud(0 ft) Seal Bond(3954 ft) Cement(5000 ft) 000 IIIMI Displacement(9416 ft) 2000 2000 3000 400# 4000 c 5000 60006000 7000 8000 8000 9000 9301 9496 0 1397 Offset, ft Baker Hughes 7 06/18/13 Nag'� Baker Hues CemFACTS Program Version 5. Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid Displacement/Placement Standoff(%) Effectiveness (%) 0 0 ft Drilling mud 0 -500 0 0 -1000 0 0 -1500 0 0 -2000 0 -2500 0 0 - -3000 0 54 3500 54 / 4000 Seal Bond 46 46 4500 47 -5000 Cement 100 100 -5500 100 -6000 100 100 -6500 100 100 -7000 100 100 -7500 100 8000 100 100 8500 100 100 -9000 100 100 9496 ft 0 67 100 -180 0 180 Baker Hughes 8 06/18/13 ��•• Baker Hoes CemFACTS Program Version .0 Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Disclaimer Notice Baker Hughes personnel will use good faith at all times in interpreting information, making recommendations, (either written, or oral) as to the type or amount of products, equipment or services to be furnished, the manner of performance, or in predicting results to be obtained. The recommendation and projections given are estimates based on calculations produced by a computer model including various assumptions regarding the well, reservoir and treatment. Due to the uncertainty of variable well conditions and the necessity of relying on facts and supporting services provided by the Customer and its other contractors, Baker Hughes hereby disclaims the accuracy of any chart interpretation, research, analysis, job recommendation or other data furnished by Baker Hughes. Such data shall include the attached report, any similar information provided electronically and any data generated through real-time monitoring. NO WARRANTY IS GIVEN CONCERNING THE EFFECTIVENESS OF THE PRODUCTS OR EQUIPMENT USED, RECOMMENDATIONS GIVEN OR SERVICES RENDERED. NO WARRANTIES, EXPRESS OR IMPLIED ARE MADE AND ALL SUCH WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABLITY OR FITNESS FOR A PARTICULAR PURPOSE,ARE HEREBY EXCLUDED AND DISCLAIMED BY BAKER HUGHES. Baker Hughes 9 06/18/13 • • BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Liner Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 III I rirr C , )CEMENT JOB REPORT BAILER HUGHES CUSTOMER BUCCANEER ALASKA OPERA 1 DATE 18-SEP-13 I F.R.# 10011014891 SERV.SUPV. CECIL J JONES LEASE&WELL NAME LOCATION COUNTY-PARISH-BLOCK KENAI LOOP#1.4-API 50133208180000 33-8N-11W Kenai Alaska DISTRICT DRILLING CONTRACTOR RIG# TYPE OF JOB Kenai Liner SIZE&TYPE OF PLUGS LIST-CSG-HARDWARE MECHANICAL BARRIERS MD TVD J HANGER TYPES MD IVO MATERIALS FURNISHED BY BJ LAB REPORT NO.1 PHYSICAL SLURRY PROPERTIES SACKS SLURRY SLURRY WATER PUMP BbI OF WGT YLD GPS TIME BbI MIX CEMENT PPG FT HR:MIN SLURRY WATER Seal Bond 11 40 Class G 1 388 15.8 1.18 4.96 81.35 45.82 Displacement Fluid I j 10.4 129.8 Available Mix Water 500 Bbl. Available Map'.Fluid 500 Bbl. TOTAL I 251.151 45.82 HOLE _ TBG-CSG-D.P. COLLAR DEPTHS SIZE I 'k EXCESS DEPTH 1 ID I OD WGT. 1 TYPE I MD 1 TVD 1 GRADE ( SHOE FLOAT I STAGE 6.75 11396M _ 1 4.5 11.6 CSG 108971 108971 LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLUID _!P Q ..WGT I TYPE MP_ TM) BND_6_TYPE I pent TOP BM_ SIZE THREAD TYPE WIT. 6.9 7.625 30.1 9498 9498 0 0 2 1502 WATER BASED ML 10.4 DISPL.VOLUME DISPL.FLUID CAL.PSI CAL.MAX PSI OP.MAX MAX TBG PSI MAX CSG PSI MIX VOLUME UOM TYPE I WGT. BUMP PLUG TO REV. SQ.PSI RATED ,Operator RATED Operator WATER 129.8 BBLS Displacement Fluid 10.4 1 Rig EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: Lost water pressure from rig's pump twice,then mud pumps only sup, d 1.5bpm rate. Pumped 30bb1 and turned over displacement to rig. PRESSURE/RATE DETAIL J EXPLANATION TIME PRESSURE-PSI RATE BbI.FLUID FLUID SAFETY MEETING: BJ CREW U CO.REP. HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 3500 PSI CIRCULATING WELL - RIG X BJ X 11:00 .Sept 17,2013(C.Jones,T.Mount,J.Cress,G.Gonzales) Rig up equipment. 17:00 Leave location. 11:00 Sept 18,2013(C.Jones,T.Mount,J.Cress,G.Gonzales,M.Lowery, C.Zoda)Arrive location for job. 11:05 Speak with DSM Lonnie Dillinger. 11:20 Hold rig up safety meeting with crew. 11:30 Finish final rig up and test equipments. 13:00 Standby 17:00 Hold safety meeting on rig floor with BHI/Rig crews,DSM and Tool Hand. 17:23 75 0 3 3 H2O Break circulation to was up pit. 17:29 1813 0 0 0 H2O Attempt break circulation to shaker.Found a dosed valve on rig floor manifold. 17:45 301 0 3 2.5 H2O Break circulation to shaker. 17:52 3502 0 0 0 H2O Test lines to 3500 psi. 17:59 0 0 0 0 H2O Bleed off. 18:11 0 0 0 0 SPR Batch up spacer to 11. 18:17 509 0 2.3 0 SPRDown hole with spacer. _ 18:19 20 0 0 2.2 SPR LOST WATER SUPPLY OF WATER FROM RIG. 18:26 0 0 0 0` SPR Finish cleaning out mix system. 18:29 906 04.3 2.4 SPR Down hole with spacer. 18:39 118 0 1.8 40 SPR Finish Spacer and increase weight to 15.8ppg cmt. 18:40 0 0 0 0 CMT SHUT DOWN DUE TO LOST WATER FROM RIG. Rep.1 Rimed on: SEP-141303:07:38 Page 1 Jr0004 S • VAN" CEMENT JOB REPORT BAKER HUGHES PRESSURE/RATE DETAIL EXPLANATION TIME PRESSURE•PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 3500 PSI CIRCULATING WELL - RIG X BJ X 19:12 0 0 0 0 CMT Finish cleaning out mix system. 19:15 477 0 4 0 CMT Down hole with CMT at 15.8 ppg. 19:35 170 0 1.9 80.2 CMT Finish CMT 80.2 bbl down hole. 19:44 115 0 4 12 WATER 12bbl water(picked up to protect from further loss of water from rig). 19:50 45 0 1.924 MUD 24bbl displacement(12 water/12 mud). 19:55 52 0 3 30 MUD 30 bbl displacement(12 water/18 mud). 19:58 Turn over well to rig. 20:00 Hold rig down meeting. Thank you for calling Baker Hughes Pressure Pumping. 1 PSI TO TEST BBL.CMT TOTAL PS! SPOT SERVICE SUPERVISOR SIGNATURE: BUMPED BUMP FLOAT RETURNS/ BBL. LEFT ON TOP OUT I PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT 1 Y N 0 Y N 0 150 0 Y N Repos Rood on SEP 19 13 03.07 56 Page 2 • • Baker Hughes JobMaster Program Version 3.60 Job Number: 10011014691 BAKER Customer: Buccaneer HUGHES Well Name: Kenai Loop#1-4 Buccaneer Kenai Loop#1-4 4.5 Liner FR:10011014691 10000 36-- I r I 30 bbl disp I D/H Spr Turn over , p Lost Water Start Displacement To Rig I:a1t Resume Cmt D/H Finish Cmt ;i 4 [ 20Lost Water \*._—_,---11 Spr D/HSi a \ \ a ` �j ` _ a I ct lora Batch Spr Rats t_ 5000 fe \1 Ti w r Low Tat Q . C W Tat t �i / '�lJ�'^^ 1 ii 10 c e 10 = Cleaning Up mix tub F N rl ' '1_ lil 1, t Ijr[!1 1 ' Lt. "11- ' . III - 18:13:06 19:03:06 19:53:06 20:03:06 09/18/13 09/18/13 09/18/13 09/18/13 Baker Hughes Job Start Wednesday,September 18,2013 • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC WARM Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 11,000 ft Depth (MD) 11,396 ft Hole Size 6.75 in Liner Size/Weight 4 1/2 in, 12.6 lbs/ft Pump Via Drill Pipe 4" O.D. (3.340" .I.D) 14 Casing 4 1/2" O.D. (3.958" .I.D) 12.6 Total Mix Water Required 1,924 gals Weighted Spacer Seal Bond 40 bbls Density 11.0 ppg Slurry Class G 388 sacks Density 15.8 ppg Yield 1.18 cf/sack Displacement Displacement Fluid 127 bbls Report Printed on September 27,2013 3'.55 PM Page 7 Gr4109 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC V i Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner HUGHES Date: September 23, 2013 Proposal No: 1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 6.875 CASING I 9,498 I 9,301 6.750 HOLE I 11,396 I 11,000 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I.D. (lbs/ft) MEASURED I TRUE VERTICAL 4.500 I 3.958 I 12.6 I 11,396 I 11,000 Drill Pipe 4.0 (in) OD, 3.34(in) ID, 9,298 ft 14(lbs/ft) set @ Liner 4.5(in) OD, 3.958(in) ID, 10,996 ft 12.6(lbs/ft) set @ Depth to Top of Liner 9,298 ft Float/Landing Collar set @ 10,996 ft Mud Density 10.40 ppg Est. Static Temp. 175 ° F Est. Circ.Temp. 135 ° F VOLUME CALCULATIONS 200 ft x 0.1473 cf/ft with 0% excess = 29 cf 1,898 ft x 0.1381 cf/ft with 50% excess = 393 cf 400 ft x 0.0854 cf/ft with 0% excess = 34 cf (inside pipe) TOTAL SLURRY VOLUME = 457 cf = 81 bbls Report Ported on September 27,20133'.55 PI.' Page 8 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • Operator Name: BUCCANEER ALASKA OPERATIONS LLC .��. Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS Weighted Spacer 40.0 bbls Seal Bond + 19 lbs/bbl Potassium Chloride + 131.2 lbs/bbl Barite - Sacked @ 11 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 457 / 1.18 = 388 sacks Class G Cement+ 0.005 lbs/sack Static Free + 1.2% bwoc BA-56 + 0.3% bwoc R-3 + 3% bwow Potassium Chloride + 0.5% bwoc EC-1 + 0.4% bwoc CD-32 + 1 gals/100 sack FP-6L + 0.2% bwoc Sodium Metasilicate +44% Fresh Water Displacement 126.6 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.18 Amount of Mix Water (gps) 4.96 Amount of Mix Fluid (gps) 4.97 Report Printed on September 27,2C Gr4129 Page 9 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Rev. D //au •West Coast Area Laboratory Repo 5-20-13 BAKER HUGHES Report#: CMT037113B Client/Well Information: Company: Buccaneer Alaska District: Kenai Depth MD: 10897 Field: Kenai Loop Job Type: Liner Depth TVD: 10702 Well: KL 1-4 Hole Size: 6 3/4" BHST: _ 173 Prepared for: Pete Berga Casing Size: 4 1/2" BHCT 135 Submitted by: Ken Nix Cement: Class G . Water: Fresh -Tap Tested by: Yarbrou•h Lot#: Alaska Date: 8/9/13 R-3 0.3 % BWOC A-9 (KCI) 3 % BWOW Base Class G 100 I % EC-1 0.5 %BWOC FP-6L 1 dal/100sacl Additives CD-32 0.4 %BWOC Static Free 0.005 lb/sack A-2 (SMS) 0.2 _% BWOC BA-56 1.2 % BWOC Density: I 15.8 ppg Yield: 1.18 ft3/sack Mix Water: 4.952 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 60 rpm 30 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 135 F 0 241 159.5 100.5 74 51 23.5 16 216 24 Gel 10 sec 10 min 100 Ib/sqft 500 lb/sqft Free Water: 45 deg 0 Strength Fluid Loss: 28 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): Machine: Sponge 30 bc: 50 bc: 70 bc: 3:53 100 bc: 600 40000— 100_-- 540— 36000— 90=- - -'- - 480— 32000= 80.' 420= 28000= Q 70=-'..-- - lT 360— n 24000' '-_. g 60 300 20000_ 50— .. -___. __.._-. _.. 240= 1 6000— 40= -'-- --'-- - _._ ..._ i. 180-7. 12000 4. 30— _.. - - _ _... -_ -. _- �i. - -. • l 20_ 8000 _ 20— --_ _. r_ ___ y_._.__ ---_ _._-_ - - 60- 4000— 10— - _ -.-. ..... • ._. _..__ .._.. 0 O O i 0:00 0:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 lime(1-11-1:1M� `M tren.th Data: Temp 17:49 19:44 8 hr 12 hr ' 24 hr 48 hr 72 hr 96 hr 173 F 50 psi 500 psi 1512 2965 400 j., 1 8 5000 360 1 6 4500 --..-f.'''..---- --- 320 —n 14_ 4000 280 -- =- n3500 —-_ _. _ _ . _. - - 12 _ _ 240 = 3000 —_200 _ .. 10_ 8 _ ' , -- 2500 —_ - 1 60 -T: =- 2000 -. -- _._ _ .--- 120 •- _ 6 1500 — -.__.. . ...-._.- 80 = 4- 1000 40 — 2 Y 500 - 0 0 0 - -0 1 2 24 36 48 Time (I-11--1) Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon.Baker Hughes makes no warranty.express or implied.as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage,whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. • • Buccaneer Energy Well: Kenai Loop KL 1-4 CemFACTS Report Design Date: 6/18/13 Service Type: 4 1/2" Liner Baker Hughes Representative: Ken Nix //611 BAKER HUGHES Advancing Reservoir Performance ��'�� Baker Hi s CemFACTS Program Version a Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Service Information Design Date: 6/18/13 Customer: _ Buccaneer Energy Well: Kenai Loop KL 1-4 State: AK Service Type: 4 1/2"Liner Service District/Boat: _ Kenai Baker Hughes Representative: Ken Nix Well Description Well Depth: 10897 ft Shoe Depth: 10897 ft Landing Collar Depth: 10817 ft Cement Top: 9246 ft Previous Shoe Depth: 9496 ft Liner Hanger Depth: 9246 ft Surface Temperature: 55 °F Static BHT: 173 °F Circulating BHT: 135 °F Surface Line Length: 50 ft Surface Line ID: 1.750 in Cement Excess: Increase Hole Size(s) Hole Dia. From To in ft ft 6.875 0 9496 6.750 9496 10897 Casing OD ID Weight From To in in Ibm/ft ft ft Drill Pipe 4.500 3.826 16.60 0 9246 4 1/2"Liner 4.500 3.958 12.60 9246 10897 Miscellaneous Treating Line Volume: 0 bbl Pipe Vol Above Collar: 155 bbl Pipe Vol Below Collar: 1 bbl Annulus Volume: 297 bbl Displacement Volume: 156 bbl Total Volume: 454 bbl Casing Wt(Air): 171055 lbf Casing Wt(Eff): 138463 lbf Wellbore Start End Hole Casing Casing Summary MD MD TVD ID OD ID ft ft ft in in in Cased 0 9246 9051 6.875 4.500 3.826 Cased 9246 9496 9301 6.875 4.500 3.958 Open 9496 10897 10702 7.462 4.500 3.958 Baker Hughes 1 06/18/13 ��•• Baker Hoes CemFACTS Program Version Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluids ( 4 Total) Fluid 1 Type: Initial Mud Fluid Description: 'Drilling mud Gel Strength: 4.0 lbf/hft2 Plastic Viscosity: _ 10.0 cp Yield Point: 24.0 lbf/hft2 Density: 10.40 ppg Fluid 2 Type: Pre flush or Spacer Fluid Description: Seal Bond n: 0.6040 K: 0.7098 Ibf.s^n/hft2 Yield Point: 2.4 lbf/hft2 Density: 11.00 ppg Fluid Volume: 40 bbl Water: 100.0 % Water Volume: 40 bbl Net Height: 1524 ft Total Height: 1524 ft Top: 7722 ft Bottom: 9246 ft Displacement Rate: 4.00 bpm Contact Time: 10.0 min Mixing Rate: 4.00 bpm Fluid 2 Additives 0.0% 0.0 Ibm Fluid 3 Type: Cement Slurry(Slurry) Fluid Description: Cement n: 0.6799 K: 3.3300 Ibf.s^n/hft2 Yield Point: 0.1 lbf/hft2 Density: 15.80 ppg Cement Yield: 1.1590 ft3/sack Total Cement: _ _ 271 sacks Slurry Volume: 56 bbl Water: 4.91 gal/sack Water Volume: 32 bbl Excess: 40.0 % Excess: 0 ft Net Height: 1651 ft Total Height: 1651 ft Top: 9246 ft Bottom: 10897 ft Mixing Rate: 19.4 sack/min Mixing Rate: 4.00 bpm Baker Hughes 2 06/18/13 ��•■ Baker Hoes CernFACTS Program Version NI Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid 3 Additives 10.0% O.OIIbm L Fluid 4 Type: Displacement Fluid Description: Displacement Plastic Viscosity: 10.0 cp Yield Point: 24.0 lbf/hft2 Density: 10.40 ppg Fluid Volume: 156 bbl Water: 100.0 % Water Volume: 156 bbl Total Height: 10817 ft Top: O ft Bottom: 10817 ft Operating Schedule Segment Volume Rate Time Cum.Time bbl bpm min min Seal Bond 40 4.00 10.0 10.0 Cement 56 4.00 14.0 24.0 Shut-Down 0 0.00 15.0 39.0 Displacement 156 10.00 15.6 54.6 Flow Inner Outer Pump Fluid Rey. Qmin Ref. Behavior Dia Dia Rate Vel. No. Turb. Temp. in in bpm ft/min bpm °F Drilling mud 5.500 8.750 6.00 133.4 6031 12.17 Seal Bond _ 5.500 8.750 6.00 133.4 56957 0.32 Cement 5.500 8.750 6.00 133.4 4872 6.20 Displacement 5.500 8.750 6.00 133.4 353 32.86 5.500 8.750 6.00 133.4 129 49.37 5.500 8.750 12.00 266.7 14239 2.53 Summary Slurries Mixing Time: 14.0 min Displacement Time: 15.6 min Net(From Cement Mixing): 44.6 min Total(From Start): 54.6 min Baker Hughes 3 06/18/13 ��•• Baker Hiss CemFACTS Program Version 5R Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Density Pore Den ECD Frac Den @ 252 bbl 9400 I 1 I i 1 1 I 9500- 10000— _c 500-10000 0 N y f6 N 2 I 1 1 1 1 1 1 1 10 12 14 16 17 Density Baker Hughes 4 06/18/13 ��•• Baker Hus CemFACTS Program Version Job Number: BAKERCustomer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 ECD @ Critical Depths 15— 20 —5000 4000 15 —3000 a. c - 0. d .0 ca 10— U) c W - V a` w v) w ?00 —5 5 —1000 20 40 55 Elapsed Time(min) Baker Hughes 5 06/18/13 ��•■ Baker Hoes CemFACTS Program Version PO Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 —o MD=10897 ft, Volumes in bbl Design Actual Stage 252 252 Slurry Total 247 Return Total 4040 01. Seal Bond 56 56 02. Cement -2500 0 0 03. Shut-Down 156 156 04. Displacement -5000 -7500 -10000 Baker Hughes 6 06/18/13 EauBaker Hoes CemFACTS Program Version Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Wellbore Diagram 0 Mil Drilling mud(0 ft) NM Seal Bond(7722 ft) ▪ Cement(9246 ft) ▪ Displacement(10817 ft) 4 I 2000— 2000 4000- 4000 0 1- 6000- 6000 8000- 8000 10000 10000- 10702- 10897 0 1397 Offset, ft Baker Hughes 7 06/18/13 ��•• Baker Hies CemFACTS Program Version Ilk Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Fluid Displacement/Placement Standoff(%) Effectiveness (%) 9496 ft Cement 100 100 '' 100 100 % 100 100 fi, 100 100 , „ 100 100 ar 100 100 -, 10000 ;,, . 100 100 r= 100 ', 100 Y 100 100 ' 100 � ' 100 ,.,4,,,,,,,c: 100 � , 100 �` 100 P b ; 100 100 . 100 ;; 100 ai 100 100 F., 100 100 . 100 . 100 s 10897 ft 0 67 100 -180 0 180 Baker Hughes 8 06/18/13 ��' Baker Hoes CemFACTS Program Version Mk Job Number: BAKER Customer: Buccaneer Energy HUGHES Well Name: Kenai Loop KL 1-4 Disclaimer Notice Baker Hughes personnel will use good faith at all times in interpreting information, making recommendations, (either written, or oral) as to the type or amount of products, equipment or services to be furnished, the manner of performance, or in predicting results to be obtained. The recommendation and projections given are estimates based on calculations produced by a computer model including various assumptions regarding the well, reservoir and treatment. Due to the uncertainty of variable well conditions and the necessity of relying on facts and supporting services provided by the Customer and its other contractors, Baker Hughes hereby disclaims the accuracy of any chart interpretation, research, analysis, job recommendation or other data furnished by Baker Hughes. Such data shall include the attached report, any similar information provided electronically and any data generated through real-time monitoring. NO WARRANTY IS GIVEN CONCERNING THE EFFECTIVENESS OF THE PRODUCTS OR EQUIPMENT USED, RECOMMENDATIONS GIVEN OR SERVICES RENDERED. NO WARRANTIES, EXPRESS OR IMPLIED ARE MADE AND ALL SUCH WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABLITY OR FITNESS FOR A PARTICULAR PURPOSE,ARE HEREBY EXCLUDED AND DISCLAIMED BY BAKER HUGHES. Baker Hughes 9 06/18/13 BAKER HUGHES Proposal No: 1001161515G BUCCANEER ALASKA OPERATIONS LLC KENAI LOOP#1-4 KENAI LOOP Field 33-6N-11W Kenai County, Alaska September 23, 2013 Top of Liner Cementing Post Job Report Prepared for: Prepared by: Stephen Hennigan Joshua Herald Project Engineer Technical Support Engineer Buccaneer Alaska Operations Bus Phone: 907-776-4084 Bus Phone: 337-984-2603 Email: Joshua.Herald@bakerhughes.com Email: shennigan@peiinc.com Mobile: 907-398-8303 Mobile: 337-849-5345 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Bus Phone: 907-267-3487 Fax: 907-776-4087 Mobile: 907-229-6536 Powered by PowerVision Gr4105 II • /Es/ CEMENT JOB REPORT BAKER, • , , . _ , T r , HUGHES CUSTOMER BUCCANEER ALASKA OPERA DATE 25-SEP-13 F.R.S 10011015938 SERV.SUPV. CECIL J JONES LEASE&WELL NAME LOCATION COUNTY-PARISH-BLOCK KENAI LOOP#1-4-API 50133206180000 33-8N-11W Kenai Alaska DISTRICT DRIWNG CONTRACTOR RIG C TYPE OF JOB Krnai liner B&ZE L TYPE OF PLUGS LIST-CSG-HARDWARE MECHANICAL BARRIERS MD TVD, HANGER TYPES MD TVD Bridge Plug _ 9900 Packer 9860 PHYSICAL SLURRY PROPIR11ES , . SACKS SLURRY SLURRY PUMP Bbi OF WGT YLD WATER TIME Bbl MIX MATERIALS FURNISHED BY BJ LAB REPORT NO. CEMENT PPG FT3 GPS HR:MIN SLURRY ; WATER Class G 145 15.81 1.18 4.96 304 17.12 Displacement Fluid 9.6 i : 90 Fresh Water 8.3 5 Fresh Water 8.3 3.26 Available Mix Water 500 abl. Available Diapl.Fluid 100 Bbl. TOTAL 1 128.661 17.12 HOLE TBG-CSG-D.P. COLLAR DEPTHS SIZE . %EXCESS -01/1M17.7I) , WGT. , TYPE MD . TVD GRADE+ SHOE FLOAT _ STAGE 6.75 9883 2.151 2.875 10.4 DP 1816 3.34 4 14 DP 8046 LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLUID ID OD, W 3T TYPE. MO_Tom. BRANO&TYPE DEPTH TOP SIPE UTE THREAD TYPE , NGT. 6.9 7.63 29.7 94981 9301 Cement Retainer 9900 9870 9872 2 1502 BRINE 9.2 4.0 4.512.6 CSG 10897 } 9870 9872 DISPL VOLUME DISPL FLUID ' CAL PSI CAL MAX PSI OP.MAX MAX TBG PSI MAX CSG PSI MIX VOLUME UOM TYPE WGT. BUMP PLUG TO REV. SQ.PSI RATED Operator RATED Operator WATER 95.4 BBLS Displacement Fluid 9.6 Rig , Circulation Prior to Job Circulated Well: Rig X BJ Circulation Time: Circulation Rate: BPM Mud Density In: 9,6 LBs/GAL Mud Density Out: 9.6 LBS/GAL PV&YP Mud In: PV&YP Mud Out: Gas Present NO `X YES I Units: Solids Present at End of Circulation: NO X YES Displacement And Mud Removal Displaced By: Rig BJ Amount Bled Back After Job: BBLS — Returns During Job: NONE PARTIAL X FULL Method Used to Verify Returns: __ Cement Returns at Surface: YES X NO Were Returns Planned at Surface: X NO YES Pipe Movement: ROTATION RECIPROCATION NONE UNABLE DUE TO STUCK PIPE Centralizers: X NO YES Quantity: Type: BOW RIGID Job Pumped Through: CHOKE MANIFOLD SQUEEZE MANIFOLD MANIFOLD NO MANIFOLD Plugs _ _ .. .. Number of Attempts by BJ: 1 Competition: Wiper Balls Used X NO YES Quantity: Plug Catcher Used: X NO YES Parabow Used: X NO YES Was There a Bottom: X NO YES Top of Plug: FT Bottom of Plug: FT Squeezes(Update Original Treatment Report for Primary Job) BLOCK SQUEEZE SHOE SQUEEZE TOP OF LINER SQUEEZE ,TC PLANNED UNPLANNED Liner Packer. X NO YES Bond Log: X NO YES PSI Applied: Fluid Weight: LBS/GAL Casing Test(Update Original Treatment Report for Primary Job) Casing Test Pressure: 4800 PSI With 9.6 LBS/GAL Mud Time Held: 00 Hours 05 Minutes EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: Rem.Pnneea on SEP2523 06 J6 Page 1 .ie:/. 0 • M■ CEMENT JOB REPORT BAKER .. _..... -- .. •••••• . HUGHES Shoe Test(Update Original Treatment Report for Primary Job) Depth Drilled out of Shoe: FT Target EMW: LBS/GAL Actual EMW: LBS/GAL Number of Times Tests Conducted: Mud Weight When Test was Conducted: LBS/GAL Problems Before Job(I.E.Running Casing,Circulating Wel,ETC) Problems During Job(I.E.Lost Returns,Equipment Failure,Bulk Delivery,Foaming,ETC) Transmission oil pressure on pump unit showing 240-275psi along with error code M1/M2 at console. Problems After Job(I.E.Gas at Surface,Float Equipment Failed,ETC) PRESSUREIRATE DETAIL EXiPLANATION TIME PRESSURE-PSI RATE Bbl.FLUE FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE ANNULUS BPM PUMPED I TYPE TEST LINES 4800 PSI CIRCULATING WELL - RIG X BJ 12:34 9-25-13 Arrive on location(C.Jones,J.Cress,C.Zoda,G.Gonzales,R. Selfridge). 12:39 ' Hold meeding with Joe the DSM. 13:04Hold rig up meeting with crew. 13:12 1 Prep equipment for job. 13:55 I I Stand by 15:30Hold safety meeting on rig floor. 16:13 __I II ""Start Job*" 16:20 Pick up brime and test rate shipped 16:21 Unsting from packer 16:27 122 0 2 3 BRIM prime lines with 9.6 ppg brime. 16:34 600 0 0 0 BRIME Low psi test 16:37 4800 0 0 0 BRIM High psi test 16:43 4645 0 0 0 BRIME bleed off pressure. 16:43 0 0 0 0 BRIME I Sting in 16:45 I 1400 0 1 1 3 BRIME I Start injection test @ 1 bpm pressure reached 1400 and broke back to 500psi _ 04:48 I 1000 r 0 3; 1 BRIME Increase rate to 3bpm pressure steady at 1000psi fort lbbl then jump to 1500psi 16:57 —I 1051 0 3 i _._ 10 BRIME 10 bbl away of injection rate. � 17:00 I 1511 0 3 20 BRIME ',pressure jumped at 11 bbl pumped into injection rate 17:03 1520 0 3; 30 BRIME 'Shut down at 30 bbl pumped @ 3bpm. 17:08 0 0 5' 18 H2O Clean out brime from pumps and lines in prep for cmt job. 17:33 0 0 0 0 H2O pick up clean water for mixing cmt. 17:37 1500 0 35 H2O Pump 5 bbl fresh water spacer ahead of cmt. 17:40 0 0 0 I_ 0 1120 Pump operator reports transmission pressure is 100psi above normal. 17:41 D 0 0!s 0 1120 Inform company man of issues. 18:10 I 0 0 0 I 0 1120 After consulting with shop mechanic travel to shop to pick up proper filters and extra fluid(suspect filter clog). 18:24 01 0 0 I 0 i H2O Mechanic having trouble finding filter/Cafl made to mobilize replacement unit as back up. 19:32 0 0 01 . 0' H2O Mechanic on location with items. 19:35 0 0 0 0 1120 DSM Dave Reid informed/Rig stings in and breaks circulation. 20:06 930 0 3 5 H2O 5bbl fresh water spacer ahead of cmt. 20:12 28 0 0 0 CMT Batch up 15.8ppg cmt. 20:19 241 0 3 1 CMT Down hole with cmt. 20:23 848 0 3 10 CMT 10 bbl down hole. 20:26 697 0 3 20 CMT 20 bbl down hole. 20:33 90 0 2 32 CMT 32 bbl down hole R"OutPmt"Oon. arm ,..23,.,, Paget III I !Pull CEMENT JOB REPORT BAR , ) HUGHES PRESSURE/RATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Obl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X HR:MIN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 4800 PSI CIRCULATING WELL - RIG X BJ 20:34 40 0 1.6 3.3 H2O 3.3bbl displacement spacer(fresh water). 20:39 53 0 3 1 BRIME displacement starts. 20:44 74 0 3 12.6 BRIME Brime Displacement 20:46 73 0 3 25.2 BRIME Brime Displacement 08:49 74 0 3 37.8 BRIME Brime Displacement 08:52 281 0 3 50.4 BRIME Brime Displacement 20:56 201 0 3 63 BRIME Brime Displacement 21:00 381 0 3 1 76.61 BRIME Brime Displacement 21:04 9700 3 88.2 BRIME Brime Displacement 09:09 2000 0 3 90 BRIME Shut down(total displacement 93.3 bbl) 78 0 0 90 BRIME Rig unsting. hold safety meeting wash up units. I Thank you for giving Bill-PP the call! PSI TO TEST BBL.CMT TOTAL PSI SPOTServIce. igoatun:.K.. r BUMPED BUMP FLOAT RETURNS! BBL. LEFT ON TOP OUT PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT , .y,„ee ._._._.._ Y N 0 Y N 0 0 0 Y N e9"_~ -5-:K Report Ponied on SEP-75-1323:03:3! Page 3 • • Baker Hughes JobMaster Program Version 3.60 BARJob Number: 10011015938 Customer: Buccaneer HUGHES Well Name: Kemal Loop 81-4 Buccaneer Kenai Loop #1-4 4.5 Liner Squeeze FR:10011015939 10000 30 Prime Lines 1 bpm injection Low test High Test 3bpm injection Shut down due to 20 Overheated Trans. 20 Si E i 1i aC ;' a �i r �g TV ilea ri a from 50004 ,;; Mix system. NCC I 4 Q tn L H 5pb H2O Spr a c O 10 j 0 I I 100 L_---_ ? _ i -i/ ,... 111l r.- �- , -._� 141i-.;\ �. i. 0 00 16:13:40 17:03:40 17:53:40 18:13:40 09/25/13 09/25/13 09/25/13 09/25/13 Baker Hughes Job Start Wednesday,September 25,2013 • • Vaal Baker Hughes JobMaster Program Version 3.60 Job Number: 10011015938 part 2 BAKER Customer: Buccaneer HUGHES Well Name: Kenai Loop#1-4 Buccaneer Kenai Loop#1-4 4.5 Liner Squeeze FR:10011015938 10000 30 , I I i i 30 Batch Up Down Hole /cmt _ Finish cmt 5bbl H2O spr i 20 i -20 r" — £ — water displ 3.26bb1 — a D C I _OS- 7 ml 5000— :; 7 I- Brime displ 90bbl — Q W s T V _ False Reading El — co co C a 10— -- —10 CI • — f r End Displ — Sting Out – , _ . 7iiii _ ` - , . if a 19:42:49 20:32:49 21:22:49 09/25/13 09/25/13 09/25/13 Baker Hughes Job Start: Wednesday,September 25,2013 • • I Operator Name: BUCCANEER ALASKA OPERATIONS LLC FARM Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner Squeeze HUGHES Date: September 23, 2013 Proposal No: 1001161515G JOB AT A GLANCE Depth (TVD) 9,883 ft Depth (MD) 9,883 ft Hole Size 6.75 in Liner Size/Weight 4 1/2 in, 12.6 lbs/ft Pump Via Drill Pipe 2 7/8" O.D. (2.441" .I.D) 6.85 Casing 4 1/2" O.D. (3.958" .I.D) 12.6 Total Mix Water Required 694 gals Slurry Class G 140 sacks Density 15.8 ppg Yield 1.18 cf/sack Displacement Displacement Fluid 63 bbls Report Printed on September 27,20133.55 PM Page 10 Gr4109 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • Operator Name: BUCCANEER ALASKA OPERATIONS LLC r�.. Well Name: KENAI LOOP#1-4 BAKER Job Description: 4 1/2" Liner Squeeze HUGHES Date: September 23, 2013 Proposal No: 1001161515G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 6.875 CASING 9,498 I 9,301 6.750 HOLE 9,883 I 9,883 SUSPENDED PIPES DIAMETER (in) WEIGHT I DEPTH(ft) O.D. ( I.D. (lbs/ft) I MEASURED I TRUE VERTICAL 4.500 3.958 I 12.6 I 9,883 9,883 Drill Pipe 2.875(in) OD, 2.441 (in) 9,273 ft ID, 6.85 (lbs/ft) set @ Liner 4.5 (in)OD, 3.958 (in) ID, 9,883 ft 12.6(lbs/ft) set @ Depth to Top of Liner 9,273 ft Float/Landing Collar set @ 9,883 ft Mud Density 10.40 ppg Est. Static Temp. 153 ° F Est. Circ. Temp. 135 ° F VOLUME CALCULATIONS 225 ft x 0.1473 cf/ft with 0% excess = 33 cf 385 ft x 0.1381 cf/ft with 100% excess = 106 cf TOTAL SLURRY VOLUME = 139 cf 25 bbls Page 11 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Operator Name: BUCCANEER ALASKA OPERATIONS LLC Ira . Well Name: KENAI LOOP#1-4 BAKER■ ± Job Description: 4 1/2" Liner Squeeze HUGHES Date: September 23, 2013 Proposal No: 1001161515G FLUID SPECIFICATIONS VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 139 / 1.18 = 140 sacks Class G Cement+ 0.005 lbs/sack Static Free+ 1.2% bwoc BA-56 +0.3% bwoc R-3 + 3% bwow Potassium Chloride + 0.5% bwoc EC-1 + 0.4% bwoc CD-32 + 1 gals/100 sack FP-6L+ 0.2% bwoc Sodium Metasilicate +44% Fresh Water Displacement 63.0 bbls Displacement Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.18 Amount of Mix Water (gps) 4.96 Amount of Mix Fluid (gps) 4.97 rt Printed on September 27.2013 3:55 PM Page 12 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping Rev. D yawl • West Coast Area Laboratory Rep . 5-20-13 BAKER HUGHES Report#: CMT037113B Client/Well Information: Company: Buccaneer Alaska District: Kenai _ Depth MD: _ 10897 Field: Kenai Loop Job Type: Liner Depth TVD: _ 10702 Well: KL 1-4 Hole Size: 6 3/4" BHST: 173 Prepared for: Pete Berga Casing Size: 4 1/2" BHCT 135 Submitted by: Ken Nix Cement: Class G _ Water: Fresh-Tap Tested b : Yarbrou•h Lot#: Alaska Date: 8/9/13 Slurry Desi•n: R-3 0.3 % BWOC A-9 (KCI) 3 % BW OW Base I Class G 1001 % EC-1 0.5 % BWOC FP-6L 1 dal/100sacl Additives CD-32 0.4 % BWOC Static Free 0.005 lb/sack A-2 (SMS) 0.2 % BWOC BA-56 1.2 % BWOC Slurry Properties: Density: 15.8 ppg Yield: 1.18 ft3/sack Mix Water: 4.952 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 60 rpm 30 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 135 F 0 241 159.5 100.5 74 51 23.5 16 216 24 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 45 deg _ 0 Strength Fluid Loss: 28 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): Machine: Sponge 30 bc: 50 bc: 70 bc: 3:53 100 bc: 600 40000— 100— 540— 36000— 90— 480—' 32000— 80— 420— 28000— 70— 360— n 24000--E. a 60 300— 20000— 50--C240— 16000_ 40 180- f 12000— I 30= 120- 8000= II 20 _ _ ___ _ _. _..... _ _ _ -C=11 60— 4000— 10 0 0 0 0:00 0:30 1:00 1:30 2:00 2:30 :3.00 3:30 4:00 'lima(1-11-1:rv1 1) _ tren•th Data: Temp 17:49 19:44 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 173 I F 50 psi 500 psi 1512 2965 400 — 1 8 --L. 5000 360 - 1 6 — 4500 - 320 — 14 = 4000 280 — ^ 3500 12 — 240 - 3000 • 1O 200 — 18 - 2500 O<> 160 — 2000 6 120 -_ - 1500 80 _ 4 = 1000 40 — 2 500 0 — 0 0 0 12 24 36 48 Time (HF-I) Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied.as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage,whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. 1111 • CONDITIONS BAKER HUGHES The services and products will be provided under the attached Baker Hughes Incorporated Worldwide Terms and Conditions. By requesting that Baker Hughes provide the services and products described herein, Customer accepts all of the terms and conditions of this proposal, including the attached Baker Hughes Incorporated Worldwide Terms and Conditions. In the event that Customer and Baker Hughes have executed a Master Services Agreement covering the services and products to be provided, such Master Services Agreement shall govern in place of the Baker Hughes Worldwide Terms and Conditions. Report Printed on: SEP-27-13 03'.55 Gr4175 S • • NOTE:THIS AGREEMENT CONTAINS PROVISIONS THAT INDEMNIFY AND/OR RELEASE THE INDEMNIFIED AND/OR RELEASED PARTY FROM THE CONSEQUENCES OF ITS OWN NEGLIGENCE AND OTHER LEGAL FAULT. WahlTERMS AND CONDITIONS BAKER HUGHES Worldwide Orders for rental equipment("Equipment"),services("Services"),and the supply or sale of products,chemicals,or NOTWITHSTANDING PARAGRAPH B.ABOVE,SHOULD CUSTOMER FAIL TO RECOVER SUCH TOOLS equipment("Products")to be provided by Baker Hughes Incorporated through ds direct or indirect subsidiaries(in each LOST IN THE WELL,OR SHOULD SUCH TOOLS BECOME DAMAGED IN THE WELL,OR DAMAGED case such subsidiary is referred to herein as"BHI"end shall be severally liable for all obligations of BHI herein arising DURING RECOVERY,CUSTOMER SHALL REIMBURSE BHI FOR THE COST OF REPAIRING ANY TOOLS from or related to the order)to its customers(each a"Customer)are subject to acceptance by BHI,and any orders so SO DAMAGED,OR THE REPLACEMENT VALUE OF ANY SUCH TOOLS THAT ARE LOST OR NOT accepted will be governed by the teens and conditions stated herein and any additional terms proposed or agreed to in REPAIRABLE. writing by an authorized representative of BHI(these terms and conditions and any such additional terms collectively referred to herein as the"Agreement"). FURTHER,NOTWITHSTANDING PARAGRAPH B.ABOVE,ALL RISKS ASSOCIATED WITH LOSS OF OR DAMAGE TO TOOLS WHILE IN THE CUSTODY OR CONTROL OF CUSTOMER OR DURING f.PAYMENT TERMS TRANSPORTATION ARRANGED BY OR CONTROLLED BY CUSTOMER,SHALL BE BORNE BY Unless alternate payment terms are specified or approved by the BHI Credit Department,all charges billed by BHI must CUSTOMER. be paid within thirty(30)days of the date of invoice.For invoices unpaid after thirty(30)days,at BHI's option,discounts from list price may be revoked and interest may be charged at the rate of ten percent(10%)per annum unless such rate E.NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT TO THE CONTRARY,CUSTOMER contravenes local law in which case the interest will accrue at the maximum rate allowed by law.Operating,production SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST or well conditions that prevent satisfactory operation of Equipment,Services or Products do not relieve Customer of its ANY AND ALL CLAIMS ASSERTED BY OR IN FAVOR OF ANY PERSON,PARTY,OR ENTITY(INCLUDING payment responsibility. BHI INDEMNITEES)ARISING OUT OF OR RELATED TO:(I)LOSS OF OR DAMAGE TO ANY WELL OR HOLE(INCLUDING BUT NOT LIMITED TO THE COSTS OF RE-DRILL AND SIDETRACK),(II)BLOWOUT, 2.CANCELLATION AND RETURNS FIRE,EXPLOSION,CRATERING OR ANY UNCONTROLLED WELL CONDITION(INCLUDING BUT NOT Products: Orders for Products that are subject to cancellation after acceptance by BHI,but before delivery,will be LIMITED TO THE COSTS TO CONTROL A WILD WELL AND THE REMOVAL OF DEBRIS),(Ill)DAMAGE TO subject to a restocking charge of at least twenty-five percent(25%),plus any packing and transportation costs incurred ANY RESERVOIR,GEOLOGICAL FORMATION OR UNDERGROUND STRATA OR THE LOSS OF OIL, before delivery.Products specially built or manufactured to Customer specifications,or orders for substantial quantities WATER OR GAS THEREFROM,(IV)THE USE OF BHI INDEMNITEES'RADIOACTIVE TOOLS OR ANY manufactured specially for Customer,may not be cancelled. CONTAMINATION RESULTING THEREFROM(INCLUDING BUT NOT LIMITED TO RETRIEVAL OR CONTAINMENT AND CLEAN-UP),(V)POLLUTION OR CONTAMINATION OF ANY KIND INCLUDING BUT Products may be returned for credit only with prior written authorization from BHI.Such Products must be unused,in NOT LIMITED TO THE COST OF CONTROL,REMOVAL,CLEAN-UP AND REMEDIATION,OR(VI)DAMAGE reusable condition,and with original unopened containers.Credit will be issued for the quantity returned at the original TO,OR ESCAPE OF ANY SUBSTANCE FROM,ANY PIPELINE,VESSEL,OR STORAGE OR PRODUCTION purchase price,less a restocking charge of at least twenty-five percent(25%)and any actual packing and transportation FACILITY. costs incurred by BHI.No credit will be given for shipping charges incurred by Customer. F.CUSTOMER ACKNOWLEDGES THAT CUTTINGS AND WASTE REMAIN CUSTOMER'S Equipment/Services:In the event Customer cancels an order for Services,Customer shall be liable for all costs incurred RESPONSIBILITY.CUSTOMER SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES by BHI in the mobilization/demobilization related thereto,and any other reasonable costs incurred by BHI incident to such HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS,ASSERTED BY OR IN FAVOR OF ANY PERSON cancellation.In the event Customer cancels an order for Equipment,Customer shall be liable for any transportation OR ENTITY ARISING OUT OF OR RELATED TO THE TRANSPORTATION,STORAGE,TREATMENT, costs incurred by BHI in the mobilization/demobilization of the Equipment.In addition,a restocking charge of at least DISPOSAL OR HANDLING OF CUTTINGS AND WASTE,INCLUDING,WITHOUT LIMITATION, twenty-five percent(25%)of the original Equipment order may be applied at BHI's sole discretion. CONTAMINATION OF,OR ADVERSE EFFECTS ON THE ENVIRONMENT OR ANY FORM OF PROPERTY, OR ANY VIOLATION OR ALLEGED VIOLATION OF STATUTES,ORDINANCES,LAWS,ORDERS,RULES 3.THIRD-PARTY CHARGES TAXES AND REGULATIONS(INCLUDING,WITHOUT LIMITATION,ALL CLAIMS UNDER THE COMPREHENSIVE Customer shall pay all third-party charges,in compliance with BHI's current price list,and any sales,use,rental or other ENVIRONMENTAL RESPONSE,COMPENSATION,AND LIABILITY ACT('CERCLA"),42 U.S.C.§§9601 ET taxes that may be applicable to transactions hereunder.Customer shall pay all applicable customs,excise,import and SEQ.,OR OTHER APPLICABLE STATUTES OR REGULATIONS). other duties unless otherwise agreed to in writing by an authorized representative of BHI.Customer shall provide necessary import licenses and extensions thereof. G.CUSTOMER SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS FOR CONSEQUENTIAL DAMAGES ASSERTED BY OR IN FAVOR OF ANY 4 RISK OF LOSS AND TITLE CONSIGNMENT STORAGE MEMBER OF CUSTOMER INDEMNITEES.BHI SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD Unless otherwise agreed to in writing between BHI and Customer:(i)for Product sales within the United States of CUSTOMER INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS FOR CONSEQUENTIAL America,title and risk of loss shall pass to Customer as soon as the Products depart BHI's point of origin;and(ii)for DAMAGES ASSERTED BY OR IN FAVOR OF ANY MEMBER OF BHI INDEMNITEES. Product sales outside the United States of America,INCOTERM 2010"CPT"shall apply with the following exception: TITLE AND RISK OF LOSS REMAIN WITH BHI UNTIL THE PRODUCTS REACH THE PORT OF ENTRY.For H.In the event this agreement is subject to the indemnity or release limitations in Chapter 127 of the Texas Civil Products provided on consignment,the risk of loss shall pass to Customer as soon as the Products depart BHI's point of Practices and Remedies Code(or any successor statute),and so long as such limitations are in force,each party origin;however,the title shall remain with BHI until the Product is used by Customer. covenants and agrees to support the mutual indemnity and release obligations contained in Paragraphs B.and C.above by carrying equal amounts of insurance(or qualified self-insurance)in an amount not less than U.S. In the event BHI agrees to store Products after title passes to Customer,the risk of loss shall remain with Customer.If $5,000,000.00 for the benefit of the other party as indemnitee. any such Products remain on BHI's premises for more than two(2)years from the date initially placed in storage,title shall revert back to BHI,and BHI may resell or scrap any such Products with no liability to Customer for any proceeds I.THE EXCLUSIONS OF LIABILITY,RELEASES AND INDEMNITIES SET FORTH IN PARAGRAPHS B. generated therefrom. THROUGH G.OF THIS ARTICLE 5,AND ARTICLES 6 AND 10,SHALL APPLY TO ANY CLAIM(S)WITHOUT REGARD TO THE CAUSE(S)THEREOF INCLUDING BUT NOT LIMITED TO PRE-EXISTING CONDITIONS, 5. LIABILITIES,RELEASES AND INDEMNIFICATION: WHETHER SUCH CONDITIONS BE PATENT OR LATENT,THE UNSEAWORTHINESS OF ANY VESSEL OR A.In this Agreement(i)"BHI Indemnitees"means BHI,its parent,subsidiary and affiliated or related companies;its VESSELS,IMPERFECTION OF MATERIAL,DEFECT OR FAILURE OF PRODUCTS OR EQUIPMENT, subcontractors at any tier;and the officers,directors,employees,consultants,and agents of all of the foregoing;(ii) BREACH OF REPRESENTATION OR WARRANTY(EXPRESS OR IMPLIED),ULTRAHAZARDOUS "Claims"means all claims,demands,causes of action,liabilities,damages,judgments,fines,penalties,awards,losses, ACTIVITY,STRICT LIABILITY,TORT,BREACH OF CONTRACT,BREACH OF DUTY(STATUTORY OR costs,expenses(including,without limitation,attomeys'fees and costs of litigation)of any kind or character arising out OTHERWISE),BREACH OF ANY SAFETY REQUIREMENT OR REGULATION,OR THE NEGLIGENCE, of,or related to,the performance of or subject matter of this Agreement;(iii)"Consequential Damages"means any GROSS NEGLIGENCE,WILLFUL MISCONDUCT,OR OTHER LEGAL FAULT OR RESPONSIBILITY OF ANY indirect,special,punitive,exemplary or consequential damages or losses(whether foreseeable or not at the date of this PERSON,PARTY,OR ENTITY(INCLUDING THE INDEMNIFIED OR RELEASED PARTY),WHETHER SUCH Agreement)under applicable law and damages for lost production,lost revenue,lost product,lost profit,lost business, FORM OF NEGLIGENCE BE SOLE,JOINT OR CONCURRENT,ACTIVE OR PASSIVE. lost business opportunities,or charges for rig time,regardless of whether the same would be considered direct,indirect, special,punitive,exemplary or consequential damages or losses under applicable law;(iv)"Customer Indemnitees" J.REDRESS UNDER THE INDEMNITY PROVISIONS SET FORTH IN THIS ARTICLE 5 SHALL BE THE means Customer,its parent,subsidiary and affiliated or related companies;its co-lessees,co-owners,partners,joint EXCLUSIVE REMEDIES AVAILABLE TO THE PARTIES HERETO FOR THE CLAIMS COVERED BY SUCH operators and joint venturers;its client or customer if it is not the end user of the Equipment,Services,or Products;its PROVISIONS. other contractors at any tier;and the officers,directors,employees,consultants,and agents of all of the foregoing;(v) "Cuttings and Waste"means any drill cuttings and associated muds,waste or materials from the well arising from or 6.DIRECTIONAL DRILLING processed pursuant to this Agreement;and(vi)"Tools"means Equipment and any of BHI Indemnitees'instruments, Customer shall furnish BHI with a well location plan(certified by Customer as correct)setting out the surface equipment,or tools. location of the well,the lease,license,or property boundary lines,and the bottom hole location of Customer's directionally drilled well.If,in the course of drilling the well,it becomes evident to BHI that the certified plan is in B.BHI SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD CUSTOMER INDEMNITEES HARMLESS FROM AND error,BHI shall notify Customer of the error,and Customer shall be responsible to regulate all directional drilling AGAINST ANY AND ALL CLAIMS ARISING OUT OF OR RELATED TO(I)PERSONAL OR BODILY INJURY,ILLNESS, factors so that Customer's well bottom hole location will be situated on Customer's property,license,or leasehold SICKNESS,DISEASE OR DEATH OF ANY MEMBER OF BHI INDEMNITEES,AND(II)LOSS,DAMAGE OR at total depth of the well being drilled.CUSTOMER SHALL RELEASE,DEFEND,INDEMNIFY AND HOLD BHI DESTRUCTION OF REAL OR PERSONAL PROPERTY,WHETHER OWNED,LEASED,OR CHARTERED,OF ANY INDEMNITEES HARMLESS FROM AND AGAINST ANY CLAIMS ARISING OUT OF,OR RELATED TO, MEMBER OF BHI INDEMNITEES. SUBSURFACE TRESPASS ARISING OUT OF DIRECTIONAL DRILLING OPERATIONS OR OTHER OPERATIONS PERFORMED BY BHI INDEMNITEES OR CUSTOMER INDEMNITEES. C.CUSTOMER SHALL RELEASE,INDEMNIFY,DEFEND AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS ARISING OUT OF OR RELATED TO(I)PERSONAL OR BODILY INJURY,ILLNESS, 7.CUSTOMER WARRANTY/BINDING AUTHORITY SICKNESS,DISEASE OR DEATH OF ANY MEMBER OF CUSTOMER INDEMNITEES,AND(II)LOSS,DAMAGE OR If Customer is not the sole owner of the mineral interests,the well or the field,Customer's request for Services, DESTRUCTION OF REAL OR PERSONAL PROPERTY,WHETHER OWNED,LEASED,OR CHARTERED,OF ANY Equipment or Products shall constitute Customer's warranty that Customer is the duly constituted agent of each MEMBER OF CUSTOMER INDEMNITEES. and every owner and has full authority to represent the interests of the same with respect to all decisions taken throughout the provision of any Services,Equipment or Products hereunder.CUSTOMER SHALL RELEASE, D.SHOULD TOOLS BECOME LOST OR DAMAGED IN THE WELL OR HOLE WHEN PERFORMING OR DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM AND AGAINST ALL CLAIMS ATTEMPTING TO PERFORM THE SERVICES HEREUNDER,IT IS UNDERSTOOD THAT CUSTOMER SHALL MAKE RESULTING FROM THE ALLEGATION BY ANY PERSON OR ENTITY THAT CUSTOMER HAS EVERY EFFORT TO RECOVER THE LOST OR DAMAGED TOOLS AT ITS SOLE COST.CUSTOMER SHALL MISREPRESENTED OR LACKED SUFFICIENT AUTHORITY TO REPRESENT SUCH PERSON OR ENTITY ASSUME THE ENTIRE RESPONSIBILITY FOR FISHING OPERATIONS IN THE RECOVERY OR ATTEMPTED AS WARRANTED BY CUSTOMER IN THIS ARTICLE. RECOVERY OF ANY SUCH LOST OR DAMAGED TOOLS.NONE OF BHI'S EMPLOYEES ARE AUTHORIZED TO DO ANYTHING WHATSOEVER,NOR SHALL ANY OF BHI'S EMPLOYEES BE REQUIRED BY CUSTOMER TO DO 8.ACCESS TO WELL AND WELL SITE STORAGE ANYTHING,OTHER THAN CONSULT IN AN ADVISORY CAPACITY WITH CUSTOMER IN CONNECTION WITH With respect to onshore and offshore operations,Customer shall provide at its expense adequate means of SUCH FISHING OPERATIONS, transportation required for Tools,Products and BHI personnel to gain access to or return from a well site,and Rev.1 January Report Printed on: SEP-27-13 03:55 Gr4175 • • shall obtain at Customer's expense all permits,licenses or other authorization required for BHI to enter upon work PRODUCTION FORECASTS AND RESERVE ESTIMATES,FURNISHED BY BHI TO CUSTOMER areas for the purposes contemplated.When necessary to repair roads or bridges,or to provide transportation to HEREUNDER),AND CUSTOMER HEREBY AGREES TO RELEASE,DEFEND,INDEMNIFY AND HOLD BHI move Tools,Products or BHI personnel,such shall be arranged and paid for by Customer. INDEMNITEES HARMLESS FROM ANY CLAIMS ARISING OUT OF THE USE OF SUCH INTERPRETATIONS AND/OR RECOMMENDATIONS. Customer shall provide proper storage space at the well site,meeting all applicable safety and security requirements and consistent with good industry practices,for the Tools and Products,including,without limitation,all explosive and BHI will endeavor to transmit data to Customer as accurately and securely as practicable in accordance with radioactive materials. current industry practice.Notwithstanding the foregoing,BHI does not warrant the accuracy of data transmitted by electronic processes and will not be responsible to Customer for accidental or intentional interception of such data 9.RADIOACTIVE SOURCES by others. Radioactive sources which may be used in BHI's'Services are potentially dangerous.Customer agrees to comply with all applicable governmental regulations goveming the use and handling of radioactive sources. In the event a BHI does not represent or warrant that the Products are or will be compliant with the requirements of REACH(the radioactive source becomes stuck in a well,Customer,at Customers sole risk and expense will make a reasonable Registration Evaluation Authorisation and Restriction of Chemicals Regulation 1907/2006,as amended)and all attempt to recover such radioactive source in accordance with 10 C.F.R§39.15(a)(1)-(4)or other applicable implied warranties as to compliance with REACH("REACH Compliance")are hereby excluded to the fullest extent regulations and use special precautions to prevent damaging the source during recovery operations.If the source permitted by law.Without prejudice to the foregoing,BHI shall use reasonable endeavors to obtain or maintain cannot be recovered,Customer,at Customer's sole risk and expense,will isolate the radioactive material by REACH Compliance in respect of the Products where required by law,unless it is Customer's responsibility to cementing it in place or by other means consistent with 10 C.F.R§39.15 or other applicable statutes or regulations. obtain or maintain REACH Compliance or any non-compliance is caused by any act or omission of Customer.In the event BHI receives written notice from any competent authority,or in its reasonable opinion decides,that any 10.WARRANTY of the Products are not or will not become REACH Compliant,it shall inform Customer in writing within a A.Services: BHI warrants that the Services shall conform to the material aspects of the specifications agreed to in reasonable time and may suspend any further deliveries of the relevant Products and/ortemtinate the Order, writing by BHI and Customer.In the event that the Services fail to conform to such specifications,BHI shall re- Customer shall promptly provide such information to BHI as may be required in order to obtain and maintain perform that part of the non-conforming Services,provided BHI is notified thereof in writing by Customer prior to REACH Compliance in respect of the Products and shall comply with its obligations under REACH. BHI's departure from the work site. THIS ARTICLE 10 SETS FORTH CUSTOMER'S SOLE REMEDIES AND BHI'S ONLY OBLIGATION WITH B.Equipment:BHI warrants that the Equipment will be of the types specified by and agreed to in writing by BHI and REGARD TO DEFECTIVE OR NON-CONFORMING SERVICES,EQUIPMENT OR PRODUCTS.EXCEPT AS IS Customer,and will be in good operating condition.Liability for loss or damage to Equipment is set forth in Article 5. OTHERWISE EXPRESSLY PROVIDED PURSUANT TO THE PROVISIONS OF THIS ARTICLE 10,BHI MAKES NO WARRANTY OR GUARANTEE OF ANY KIND,EXPRESS OR IMPLIED,INCLUDING NO IMPLIED C.products'(Excluding drill bits,electric submersible pumps and associated cable and surface equipment,specialty WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,REGARDING ANY chemical Products and specialty Products):BHI warrants that the Products shall conform to BHI's published SERVICES PERFORMED OR EQUIPMENT OR PRODUCTS SUPPLIED BY BHI HEREUNDER.IN NO EVENT specifications or the specifications agreed to in writing by BHI and Customer.If any of the Products fail to conform to SHALL BHI BE LIABLE FOR RIG TIME INCURRED BY CUSTOMER INDEMNITEES AS A RESULT OF such specifications upon inspection by BHI,BHI,at its option,shall repair or replace the non-conforming Products DEFECTIVE OR NON-CONFORMING SERVICES,EQUIPMENT OR PRODUCTS. with the type originally furnished or issue credit to the Customer,provided BHI is notified thereof in writing within thirty(30)days after delivery of the particular Products. 11.LOST EQUIPMENT INDEMNITY BUY-BACK In some locations,lost equipment indemnity buy-back("LEIB")is available for some Tools.LEIB must be D.grill Bits,BHI warrants that the drill bits to be provided by BHI pursuant to this Agreement shall conform to BHI's purchased by Customer prior to the Tools leaving BHI's point of origin.Regardless of LEIB,Customer shall make published specifications,If any of the drill bits fail to conform to such specifications upon inspection by BHI,BHI,at every reasonable effort to recover BHI's Tools lost or damaged in a well or hole in accordance with Paragraph 5D. its option,shall repair or replace the non-conforming drill bits with the type originally furnished or issue credit to the BHI reserves the right not to offer LEIB at its sole discretion. Customer,provided BHI is notified thereof in writing within ninety(90)days from the date of shipment. 12.JNSURANCF E.Electric Submersible Pumps and Associated Cable and Surface Equipment: BHI warrants that the electrical Upon written request,each party shall furnish to the other party certificates of insurance evidencing that adequate submersible pumps and associated cable and surface equipment to be provided by BHI pursuant to this Agreement insurance to support each party's obligations hereunder has been secured.To the extent of each party's release shall conform to BHI's published specifications. If any of the electric submersible pumps or associated cable or and indemnity obligations hereunder,each party agrees that all such insurance policies shall(i)be primary to the surface equipment fail to conform with such specifications upon inspection by BHI,BHI,at its option,shall repair or other party's insurance,(ii)include the other party,its parent,subsidiary and affiliated or related companies,its replace the non-conforming electric submersible pumps or associated cable or surface equipment with the type subcontractors and other contractors,and its and their respective officers,directors,employees,consultants and originally furnished,provided BHI is notified thereof in writing within the earlier of twelve(12)months from the date of agents as additional insured,and(iii)be endorsed to waive subrogation against the other party,its parent, installation or eighteen(18)months from the date of shipment.Warranty claims by Customer must be submitted to subsidiary and affiliated or related companies,its subcontractors and other contractors,and its and their respective BHI within sixty(60)days of the failure date of the electric submersible pumps or associated cable or surface officers,directors,employees,consultants and agents. equipment. 13.CHANGE OF DESIGN F.Specialty Chemical Products:BHI warrants that the specialty chemical Products to be provided by BHI pursuant BHI expressly reserves the right to change or modify the design and construction of any of its Products without to this Agreement shall,upon departure from BHI's point of origin,conform to the published physical and chemical obligation to furnish or install such changes or modifications on Products previously or subsequently sold. specifications established by BHI for each such Product.If any of the specialty chemical Products fail to conform to such specifications,BHI,at its option,shall replace the non-conforming specialty chemical Products with the type 14.PATENTS originally furnished or issue credit to the Customer,provided BHI is notified thereof in writing within thirty(30)days BHI warrants that the use or sale of Equipment or Products hereunder will not infringe valid patents of others by after the specialty chemical Products depart BHI's point of origin. reason of the use or sale of such Equipment or Products per se,and hereby agrees to hold CUSTOMER harmless against judgment for damages for infringement of any such patent,provided that Customer shall promptly notify G.Specialty Products:In the event BHI is to provide Products to Customer based upon Customer's specific request BHI in writing upon receipt of any claim for infringement,or upon the filing of any such suit for infringement, that BHI develop,manufacture,test or put to use Products that are intended to satisfy a unique need identified by whichever first occurs,and shall afford BRI full opportunity,at BHI's option and expense,to answer such claim or Customer and are not"standard"Products of BHI,Customer hereby recognizes and agrees that the specialty threat of suit,assume the control of the defense of such suit,and settle or compromise same in any way BHI sees Products being provided do not necessarily have or contain the same or similar characteristics as BHI's"standard" fit.BHI does not warrant that such Equipment or Products:(i)will not infringe any such patent when not of BHI's Products,including,but not limited to,a historical performance against which future performance can be measured. manufacture,or specially made,in whole or in part,to the Customer's design specifications;or(ii)if used or sold in In developing,manufacturing,testing and putting to use any specialty Products,BHI will be relying upon information combination with other materials or apparatus or used in the practice of processes,will not,as a result of such and specifications provided by Customer relating to the unique needs of Customer.As such,BHI shall have no combination or use,infringe any such patent,and BHI shall not be liable and does not hold Customer harmless for responsibility for the design,manufacture or engineering of any such specialty Products,even though BHI may have damages or losses of any nature whatsoever resulting from actual or alleged patent infringement arising pursuant participated in the development and manufacture of the specialty Products,or for any Customer-furnished materials, to(i)and(ii)above.THIS PARAGRAPH STATES THE ENTIRE RESPONSIBILITY OF BHI CONCERNING information end specifications.If,upon inspection by BHI,any of the specialty Products fail to meet the PATENT INFRINGEMENT specifications agreed to in writing by Customer and BHI,then BHI shall,at its option,repair or replace the non- conforming specialty Products with(i)the type originally furnished to Customer,or(ii)substituted Products having 15.CONFIDENTIALITY BHI's"standard"specifications and qualifications. Each party shall maintain all data and information obtained from the other party in strict confidence,subject only to disclosure required by law or legal process. In the event that BHI owns copyrights to,patents to,or has filed patent H.Discharge Services: Except to the extent that BHI has agreed to provide its discharge compliance engineering applications on,any technology related to the Services,Products or Equipment furnished by BHI hereunder,and if services("Discharge Services")to Customer pursuant to this Agreement,BRI shall have no responsibility for BHI makes any improvements on such technology,then such improvements shall not fall within the confidentiality achievement of and compliance with any specific oil retention or similar requirements mandated by any applicable obligations of BHI included herein,and BHI shall own all such improvements,including drawings,specifications, local,state or federal law or regulation.If Discharge Services are rendered by BHI and agreed oil retention or similar calculations and other documents. requirements are not met,then BHI shall,at its option,re-perform the Discharge Services,or provide a credit to Customer to cover any documented additional disposal costs incurred by Customer as a result of the nonconforming The design,construction,application and operation of BHI's Services,Equipment and Products embody proprietary Discharge Services,provided that such credit shall be limited to 3%of the amount charged for the nonconforming and confidential information.Customer shall maintain this information in strict confidence and shall not disclose it Discharge Services. to others,subject only to disclosure required by law or legal process.To the extent permissible by law,Customer shall not resell the Products or Equipment(or drawings related thereto)to others or reverse engineer or permit BHI's warranty obligations hereunder are non-transferrable and shall not apply if the non-conformity was caused by others to reverse engineer,for the purpose of manufacturing,similar Products or Equipment. (i)Customer's failure to property store or maintain the Products or Equipment,(ii)abnormal well conditions,abrasive materials,corrosion due to aggressive fluids or incorrect specifications provided by Customer,(iii)unauthorized 16.LIENS ATTACHMENTS AND ENCUMBRANCES alteration or repair of the Products or Equipment,(iv)the Products or Equipment are lost or damaged while on Customer grants to BHI a lien upon and a security interest in(i)any interest that Customer now owns or hereafter Customer's site due to Customer's or any third party's negligence,vandalism or force majeure(including,but not acquires in the lands,leasehold interests,pipelines,pipeline right-of-ways,personal property and fixtures arising limited to,lightning),or(v)use or handling of the Products or Equipment by Customer in a manner inconsistent with out of,pertaining to,located on,or used in connection with the development of,the mineral property on which the BHI's recommendations.Further,BHI's warranty obligations shall terminate if Customer fails to perform its Services,Products,or Equipment were performed or installed(the"Mineral Property"),(H)the oil and gas when obligations under this or any other Agreement between the parties. extracted from the Mineral Property,including the proceeds thereof,(iii)the contract rights,inventory and general intangibles pertaining to the Mineral Property,and(iv)any claim against any working interest owner of the Mineral All non-conforming Products shall be delivered to the service facility designated by BHI.All transportation charges Property arising from nonpayment of joint interest billings or lease operating expenses.This lien and security and removal and reinstallation charges related to the repair or replacement of non-conforming Products shall be interest shall be for the purpose of securing performance of Customer's obligations to BHI under this Agreement. borne by Customer.Any parts for which BHI provides replacement under this warranty shall become the property of Customer authorizes BHI to have filed a financing statement and any other instruments BHI determines to BHI.With regard to materials or equipment furnished by third party vendors and/or suppliers,BHI's liability therefor be necessary or appropriate to perfect the lien and security interest created hereby.Upon request,Customer shall shall be limited to the assignment of such third party vendor's or supplier's warranty to Customer,to the extent such execute any document determined by BHI to be necessary or appropriate to perfect this lien and security interest warranties are assignable.The warranty period for any repaired or replaced Products shall be only for the remainder under all applicable laws and the real property recording statutes of the state in which the Mineral Property is of the original warranty period. located. If BHI is unable to obtain proper execution of such documentation within a reasonable period of time after the request is made,then Customer hereby appoints BHI as Customer's true end lawful agent and attorney-in-fact, Interpretations,research,analysis,recommendations,advice or interpretational data(specifically including,without to execute all documents on its behalf,and to otherwise take such actions on its behalf,as BRI deems necessary limitation,any preliminary cuttings reinjection program and any engineering designs,geological studies or analyses, or appropriate,to perfect the lien end security interest created or contemplated hereby.This appointment is well programs,reservoir models,or drilling production optimization or management programs)("Interpretations coupled with an interest and may not be revoked for as long as any portion of Customer's obligations hereunder and/or Recommendations")furnished by BHI hereunder are opinions based upon inferences from measurements, remains outstanding. The lien and security interest created hereby are in addition to,and not in lieu of,any other empirical relationships and assumptions,and industry practice,which inferences,assumptions and practices are not liens and security interests now existing or hereafter coming into existence,and securing the performance of infallible,and with respect to which professional geologists,engineers,drilling consultants,and analysts may differ. Customer's obligations hereunder,whether voluntary or involuntary,including any liens arising by statute or Accordingly,BHI does not warrant the accuracy,correctness,or completeness of any such Interpretations and/or common law in favor of mechanics and/or materialmen. Recommendations,or that Customer's reliance or any third party's reliance on such Interpretations and/or Recommendations will accomplish any particular results.CUSTOMER ASSUMES FULL RESPONSIBILITY FOR Should Customer commit a breach of any of the terms and conditions of this Agreement,be named as a debtor in THE USE OF SUCH INTERPRETATIONS AND/OR RECOMMENDATIONS AND FOR ALL DECISIONS BASED a bankruptcy proceeding,or become insolvent;should Customer,or any of its assets,be the subject of a THEREON(INCLUDING,WITHOUT LIMITATION,DECISIONS BASED ON ANY OIL AND GAS EVALUATIONS, receivership proceeding;or should any creditor or other person or entity attach or levy Customers property or Rev.1 January 2012 Report Printed on: SEP-27-13 03:55 Gr4175 41111 • equipment,BHI shall immediately have the right,without notice and without liability for trespass or damages,to BY FINAL AND BINDING ARBITRATION CONDUCTED IN ACCORDANCE WITH THE UNCITRAL ARBITRATION retake and remove any of its Products or Equipment wherever H may be found.CUSTOMER SHALL RELEASE, RULES(THE"RULES"). DEFEND,INDEMNIFY AND HOLD BHI INDEMNITEES HARMLESS FROM ANY AND ALL LIENS AND ENCUMBRANCES AGAINST PRODUCTS OR EQUIPMENT FURNISHED HEREUNDER AND SHALL RETURN The Tribunal shall be composed of three arbitrators,with each party appointing one arbitrator,and the two arbitrators SAME PROMPTLY TO BHI FREE OF ANY LIENS OR ENCUMBRANCES. so appointed appointing the third arbitrator who shall act as the presiding arbitrator of the Tribunal(the"Tribunal").The appointing authority under the Rules shall be the London Court of International Arbitration.The language of the 17.FORCE MAJEURE arbitration shall be English.The seat of arbitration shall be London,England,and the proceedings shall be conducted If either party is unable by reason of Force Majeure to carry out any of its obligations under this Agreement,other and concluded as soon as reasonably practicable,based upon the schedule established by the Tribunal.Any monetary than obligations to pay money,then on such party giving notice and particulars in writing to the other party within a award shall be made in U.S.Dollars,free of any tax or other deduction,and shall include interest from the date of any reasonable time after the occurrence of the cause relied upon,such obligations shall be suspended."Force Majeure" breach or other violation of the Agreement to the date paid in full at a floating rate of interest equal to the prime rate of shall include any event that is beyond the reasonable control of the party so affected including,without limitation, interest in effect at Citibank,N.A.,New York,U.S.A.,from time to time. acts of God,laws and regulations,government action,war,civil disturbances,hijack,piracy,criminal action by a third party,threats or acts of terrorism,strikes and labor problems,delays of vendors or carriers,lightening,fire,flood, B.For Services,Equipment or Products provided,or to be provided,by BHI in the Americas:THIS AGREEMENT • washout,storm,breakage or accident to equipment or machinery,and shortage of raw materials.In the event that SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF any suspension due to Force Majeure exceeds ten(10)consecutive days,either party may terminate this Agreement OKLAHOMA,EXCLUDING CONFLICTS OF LAW AND CHOICE OF LAW PRINCIPLES.ANY DISPUTE, by written notice to the other party,and Customer shell be liable for demobilization end any other reasonable costs CONTROVERSY OR CLAIM("DISPUTE")ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR incurred by BHI incidental to such termination. THE FURNISHING OF EQUIPMENT,SERVICES OR PRODUCTS HEREUNDER SHALL BE RESOLVED BY FINAL AND BINDING ARBITRATION CONDUCTED IN ACCORDANCE WITH THE COMMERCIAL RULES OF 18.JNDEPENDENT CONTRACTOR ARBITRATION OF THE AMERICAN ARBITRATION ASSOCIATION(THE"RULES").The tribunal shall be composed It is expressly understood that BHI is an independent contractor,and that neither BHI nor its principals,partners, of one(1)neutral arbitrator if the Dispute involves a maximum exposure of less than$1,000,000.If the parties are employees or subcontractors are servants,agents or employees of Customer. unable to agree on a neutral arbitrator,one will be appointed pursuant to the Rules.If the Dispute involves a maximum exposure equal to or in excess of$1,000,000,then the Tribunal shell consist of three(3)arbitrators,with each party In all cases where BHI's employees(defined to include BHI's and its subcontractors'direct,borrowed,special,or appointing one arbitrator,and the two arbitrators so appointed appointing the third arbitrator who shall act as Chair(the statutory employees)are covered by the Louisiana Workers Compensation Act,La.R.S.23:102 et seq.,BHI and "Tribunal").The seat of arbitration shall be Houston,Texas,and the proceedings shall be conducted and concluded as Customer agree that all Services,Products and Equipment provided by BHI and BHI's employees pursuant to this soon as reasonably practicable,based upon the schedule established by the Tribunal. Agreement are an integral part of and are essential to the ability of Customer to generate Customer's goods, products,end services for the purpose of La.R.S.23:106(A)(1).Furthermore,BHI and Customer agree that C.For any arbitration conducted in accordance with Paragraph A.or B.above,the following shall apply: No award Customer is the statutory employer of BHI's employees for purposes of La.R.S.23:1061(A)(3). shell be made for Consequential Damages.Judgment upon the award rendered by the Tribunal pursuant hereto may be entered in,end enforced by,any court of competent jurisdiction.All statutes of limitation that would otherwise be • 19.JAWS RULES REGULATIONS AND EXPORT CONTROI applicable shall apply to the arbitration proceeding.Any attorney-client privilege and other protection against • BHI and Customer agree to be subject to all laws,rules,regulations and decrees of any governmental or regulatory disclosure of privileged or confidential information,including,without limitation,any protection afforded the work- ' body having jurisdiction over the Services,Equipment or Products to be provided by BHI or the work site or that may product of any attorney,that could otherwise be claimed by any party shell be available to,and may be claimed by,any otherwise be applicable to BHI's or Customer's performance under this Agreement. such party in any arbitration proceeding.The parties shall treat all matters relating to the arbitration as confidential. Subject to each party's right to cooperate fully with the United States authorities,the parties understand and agree that Customer acknowledges that Equipment,Services,Products and/or related technical data covered by this this confidentiality obligation extends to information concerning the fact of any request for arbitration,any ongoing Agreement maybe subject to U.S.and/or foreign trade controls.Customer agrees that it will not sell,reexport or arbitration,as well as all matters discussed,discovered,or divulged,(whether voluntarily or by compulsion)during the transfer Equipment,Products and/or related technical data except in full compliance with all governmental course of such arbitration proceeding.It is the desire of the parties that any Dispute is resolved efficiently end fairly requirements including but not limited to economic sanctions and export controls administered by the U.S. and the Tribunal shall act in a manner consistent with these intentions Department of Treasury,U.S.Department of Commerce end U.S.Department of State.Customer agrees to comply with all BHI requests for trade compliance information,statements,and other assurances including,without limitation, 21.ASSIGNMENT requests for End-User and Routed Transaction certifications.Any breach of this provision shall be deemed a BHI shall have the right to assign this Agreement to any of its subsidiaries,affiliated or related companies without the material breech of this Agreement and sufficient basis for BHI to reject any or ell orders or to terminate the consent of Customer. Agreement. 22.GENERAL BHI reserves the right to refuse to fulfill any orderer otherwise perform under this Agreement if BHI in its sole Failure of Customer or BHI to enforce any of the terms and conditions of this Agreement shall not prevent a discretion determines that such action may violate any law or regulation.Customer agrees that such refusal, subsequent enforcement of such terms and conditions or be deemed a waiver of any subsequent breach.Should any cancellation,or termination of the Agreement by BHI will not constitute a breach of BHI's obligations under this provision of this Agreement,or portion thereof,be unenforceable or in conflict with governing country,state, Agreement and Customer hereby waives any and all claims against BHI related to such refusal,cancellation,or province,or local laws,then the validity of the remaining provisions,and portions thereof,shell not be affected by such termination. unenforceability or conflict,and this Agreement shall be construed as if such provisions,or portion thereof,were not contained herein.This Agreement contains all representations of the parties and supersedes all prior oral or written 20.GOVERNING LAW AND ARBITRATION agreements or representations.Customer acknowledges that it has not relied on any representations other than those A.Except for Services,Equipment or Products provided,or to be provided,by BHI in North or South America(the contained in this Agreement.This Agreement shall not be varied,supplemented,qualified,or interpreted by any prior "Americas"):THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH course of dealing between the parties or by any usage of trade end may only be amended by an agreement executed ENGLISH LAW,EXCLUDING CONFLICTS OF LAW AND CHOICE OF LAW PRINCIPLES.ANY DISPUTE, by both parties. In the event that any conflict exists between the provisions of this Agreement and any other terms end CONTROVERSY OR CLAIM("DISPUTE")ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR conditions set forth in Customer's purchase orders,field work orders,work tickets,Invoices,statements,or any other THE FURNISHING OF EQUIPMENT,SERVICES OR PRODUCTS HEREUNDER SHALL BE RESOLVED type of memoranda or other documents used by Customer in the normal course of business,whether oral or written, the provisions of this Agreement shell govern. Rev.1 January 2012 Report Printed on: SEP-27-13 03:55 Gr4175 • Operator: BUCCANEER ALASKA OPERATIONS LLC V�•• Well Name: KENAI LOOP#1-4 BAKER Date: September 23, 2013 HUGHES Proposal No: 1001161515G PRODUCT DESCRIPTIONS ASA-301 Additive used to reduce or eliminate free water and settling in cement slurries. BA-56 A gas migration additive that controls fluid loss, limits free water and provides excellent solids support. It is functional at low to moderate temperatures ranges. Barite-Sacked A naturally occuring mineral (Barium Sulfate). It is widely used as a weighting material in cement spacers and occasionally in cement slurries. It can yield a slurry density in excess of 19 lbs/gal. CD-32 A patented, free-flowing, water soluble polymer that is an efficient and effective dispersant for primary and remedial cementing. Class G Cement Intended for use as a basic cement from surface to 8000 ft as manufactured, or can be used with accelerators and retarders to cover a wide range of well depths and temperatures. EC-1 A proprietary product that provides expansive properties and improves bonding at low to moderate temperatures. FL-63 A non-retarding, non-viscosifying fluid loss additive particularly suited for use with coil tubing and/or close tolerance liner cementing. FL-63 is effective from low to high temperatures. Concentrations of 0.2%to 1.0% BWOC are typical. FP-6L A clear liquid that decreases foaming in slurries during mixing. Potassium Chloride A granular salt used to reduce clay swelling caused by water-base cementing fluids. R-3 A low temperature retarder used in a wide range of slurry formulations to extend the slurry thickening time. SealBond Spacer SealBondTM spacer systems combines the unique quality of a cement spacer system with the added advantage of curing lost circulation and wellbore strengthening properties. The viscosity as well as lost circulation and strengthening properties can be adjusted using the SealBond 25, 50 and 100. In severe lost circulation cases Sodium Metasilicate An accelerator used to decrease the thickening time of cement slurries. Page 15 Gro^ Have more questions?You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • Operator: BUCCANEER ALASKA OPERATIONS LLC V 11 Well Name: KENAI LOOP#1-4 BAKER Date: September 23, 2013 HUGHES Proposal No: 1001161515E PRODUCT DESCRIPTIONS (Continued) Static Free An anti-static additive used to prevent air entrainment due to agglomerated particles. Can be used in Cementing and Fracturing operations to aid in the flow of dry materials. Type I Cement A Portland cement designed for use to 6,000 Ft. Type I cement can be modified for use at greater depths. 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L K ct L o G E L U i O ln+) l0 y pnp N 0) W O O ONE O W 00) ^R n COOO N O ,- e- M N • U ?j N G- 3 C 3 0 25 ODCO ao aD aD m EN EN Cl) n A n p N N N N N CO N co C CO O a 0 'n M co co co co N (D N N N N N N N N N N N Cla 3` (j V d j U , 0) C F a c c N �p a 5 O) a w 16 Is y LB O N M c.o. O N M N IO�yy N 1n0 1fN1 O N M aN O N Cl;..) N O al* 63 W r = 0 CO M CO M N N CO 6i cV1 CO M M PM') M M Xi XS f•1 M M M M M M W N O to 0 N oto O N 0 N 0 CO 0 N 0) 0 UO 0 10 0 Cl) 0 M • (o r CO e} r•O M O r M ,t O r M Y in n 0 r M of r.G M a co 0 N N N N N N€ 0 0 0 NN N N M M i; r) ,:4O 0 0 0 0 0 • p N N N N N N N N N N p O O O O O O O O P £ M M Kenai Loop Well 1-4 PTD 213-091 Oct 07, 2013—Finish 4 point flow test, 20/64 choke, 2525 psi@ 5.62 mmcf, shut in well, bleed lines, retrieve DH gages, Set x-plug, test plug with 1000 psi for 15 min, good test, close SSSV., bleed off tubing pressure to zero, wait 15 min. Plugs holding. R/D test tree, Rod BPV into wellhead hanger. Well secure at 2230 hrs. Prep to N/D BOP Oct 08 2013- N/D BOP stack, N/U tree with Vetco rep, test to 10,000 psi, test good, install back-pressure valve, prepare for rig move, rig down rig Oct 09 2013—Rig down rig, prep for rig move Oct 10 2013—Rig down rig, prep for rig move Oct 11 2013—Rig down rig, prep for rig move Oct 12 2013—Rig down rig, prep for rig move Oct 13 2013—Rig down rig, prep for rig move • • Kenai Loop Well 1-4 PTD 213-091 Sept 30, 2013—MW 9.6 filtered brine, Con't TIH with cleanout BHA, tag fill at 9888', wash to 9895' tag bridge plug, mill same, TIH to 10,998'. Pump sweep. POOH with cleanout BHA Oct 01, 2013—MW 9.6 filtered brine, Con't POOH with cleanout BHA, R/U Schlumberger& run CNL, M/U &TIH with scraper BHA, tag liner @ 9238', POOH LD drill pipe Oct 02 2013—MW 9.6 filtered brine, Con't POOH & LD drill pipe, R/U & Run 3.82" gage ring, M/U 3-1/8" 6 spf gun ass'y, X-nipple &4-1/2" Ultra Pak, WL in hole, set gun @ 9792' 9816', packer @ 9715'w/X- nipple @ 9727', POOH, P/U &TIH 2-7/8"6.5#tubing Oct 03 2013—MW 9.6 filtered brine, Con't TIH, U/P chem inj mandril & SSSV in TIH, P/U test head,R/U circ packer fluid w/corrosion inh & biocide, test N2 lines 500/6,000 psi, disp tubing w/ N2, land seal ass'y, test 7-5/8"casing x 2-7/8"tubing ann to 2,000 psi, 30 min. Oct 04 2013—MW 9.6 filtered brine, Test lines 500/5,000 psi. R/U &test lubricator w/drop bar to 5,000 psi, Drop bar @ 0845 hrs., initial pressure 1705 psi, flow to clean up, shut-in for 4 hours, R/U WL, test lubricator to 4,000 psi, set DH pr gage @ 9660', shut-in pressure 3350 psi, flow well @ 1745 hrs., initial flow 3264 psi, 2400 hrs flow pr 3004 psi, casing pressure 350 psi. Oct 05 13—Flow test well until 1600 hrs. 14/64 choke, 3046 psi, 2.051 mcf, shut-in well for 24 hour build up. Pressure @ 2400 hrs 3333 psi Oct 06 2013—Con't well shut in for 24 hours, At 0600 hrs. surface pr 3332 psi, 1600 hrs. start 4 point flow test. Choke size 10, 12, 14, & 16/64. • • Kenai Loop Well 1-4 PTD 213-091 Sept 23, 2013—MW 9.6 filtered brine, finish TIH 4-1/2" RTTS set @ 9304', 9376', 10530' RTTS not holding, POOH same& redress, TIH with redress 4-1/2" RTTS Sept 24. 2013—MW 9.6 filtered brine, finish TIH 4-1/2" RTTS, set RTTS @ 9310', test liner to 4,000psi, good test, test lap—leaking @ 3100 psi, POOH, TIH comp bridge plug, set @ 9900', WL perf guns to 9870'to 9872', shot all perf, RU to RIH comp retainer Sep 25, 2013—MW 9.6 filtered brine, RIH comp retainer, set @ 9857', sting in, R/U to pump cement, test lines 5,000 psi, disp brine with 3 bbl fresh water, mix& pump 30 bbl cement(145 sks)— 15.8 ppg, unsting, circ bottoms, hi ph readings, no free cement to surface, mix& pump dry job, POOH Sep 26, 2013—MW 9.6 filtered brine, finish POOH, R/U &test BOP w/ Rep Jeff Turkington, ann to 250/2500 psi, Upper& lower rams failed, test blinds, CMV, kill line& mud maniford valves to 250/5,000 psi, test koomey, work on BOP, Jeff Turkington passed on witnessing rest of test Sep 27, 2013—MW 9.6 filtered brine, repair BOP, pressure test liner lap to 4,000 psi for 30 min, good test, N/D BOP, lock in test plug, monitor casing pressure, replace rams, N/U BOP, test 250/5,000 psi, test man choke valve, test HCR Sep 28, 2013—MW—9.6 filtered brine, finish test pipe rams, TIH with milling BHA tag 9811', drill cement to 9886' (retainer @ 9849') hanger, circ bottoms Sep 29, 2013—MW 9.6 filtered brine, finish circ bottoms, test perf @ 9870', broke down @ 3,800 psi bleed to 3,000 psi, circ bottoms, POOH, TIH CBL to 9883', send results to AOGCC, WOO, TIH with clean out BHA • • Kenai Loop Well 1-4 PTD 213-091 September 16,2013—MW 10.3 ppg. Rih to 11396'. Circulated and raise mud weight to 10.3 ppg for hole stabilization. POOH to 9470'. RIH to 11396'. Circulated hole clean. POOH. September 17, 2013—MW 10.3 ppg. POOH. Install and test 4.5" casing rams. Run 4.5" 1-80, 12.6 ppf, hydril 563 liner. RIH with liner on drill pipe. September 18, 2013—MW 10.3 ppg. RIH to 9450'.CBU. RIH to 11396'.Circulated hole clean. Cemented with 82 bbls of 15.8 ppg cement.Set hanger at 9273'. Release and circulated at liner top.Start POOH. September 19, 2013—MW 9.7 ppg. Finished POOH.Tested BOPE to 250/5000 psi. Bag 250/2500 psi. RIH with mill and scapers. September 20, 2013—MW 9.6 ppg. RIH to 10998'. Ciculated hole. Mix 9.6 ppg brine and filter. September 21, 2013—MW 9.6 ppg. Filtered brine. September 22, 2013—MW 9.6 ppg. Filtered brine. Pressure test casing and liner to 4000 psi. Leaked off at 3200 psi. POOH. Made 3.8"gage run. Ran CBL. RIH with 4 1/2" RTTS. • • Kenai Loop Well 1-4 PTD 213-091 September 9, 2013—MW 9.6 ppg. Drilled from 10382'to 10803'.CBU.Wiper trip to 9404'. Drilled to 10R.17' September 10,2013—MW 9.7 ppg. Drilled to 11260'. September 11,2013—MW 9.7 ppg. Drilled to 11396'.CBU. POOH for BOP test and logging. September 12, 2013—MW 9.7 ppg. POOH. L/D BHA.Tested BOP's to 250/5000 psi. Bag 250/2500 psi. Witness waived.Attempted first log run.Tagged at 9553'. RID loggers. RIH for wiper trip. September 13, 2013—MW 9.8 ppg. RIH to 11180'. CBU. September 14,2013—MW 10.0 ppg. Washed to 11396'.CBU. POOH to log. September 15,2013—MW 10.0 ppg. R/U loggers. RIH. Hit bridge at 9780'. Log to shoe and POOH. Rih with bit washing and reaming as necessary to 10870'. • • Kenai Loop Well 1-4 PTD 213-091 September 2,2013—MW 9.7 ppg. Run 7 5/8", 29.7 ppf casing to 9474' circulating out gas at 7507', 8512'and 9474'. Land casing with shoe at 9498'. Pumped spacer. September 3, 2013—MW 9.4 ppg.Cemented with 249 bbls of 15.8 ppg cement. Bumped plug. No losses.Open DV collar at 4499'.Circulated annulus clean.Closed DV collar. RID.Tested BOPE to 250/5000 psi. Bag 250/2500 psi.Witness waived. September 4,2013—MW 9.6 ppg. Finished BOP test. RIH picking up 4" drill pipe. Drilled out DV collar. RIH picking up drill pipe to 9393'.CBU.Tested casing to 4000 psi for 30 minutes. September 5, 2013—MW 9.5 ppg. R/D from casing test. Drill out shoe track and cement to 9525'. Worked stuck pipe free. Circulated and cleaned up hole. POOH. September 6, 2013—MW 9.5 ppg. R/U and run CBL. RIH with bit to 9454'.Wash to 9525'. Drilled to 9570' (20' of new hole). CBU. Pulled to shoe.Tested shoe to 14.5 ppg EMW. Drilled to 9580'. CBU. POOH. September 7, 2013—MW 9.6 ppg. POOH. M/U MWD/LWD BHA. RIH to 9538'.Circulated and Conditioned mud. September 8,2013—MW 9.6 ppg. Washed to 9580'. Drilled to 10382'. • • Kenai Loop Well 1-4 PTD 213-091 August 26, 2013—MW 9.3 ppg. Finished RIH. Ciculated and conditioned mud. Drilled from 7541'to 7982'. August 27, 2013—MW 9.4 ppg. Drilled from 7982'to 8459'. August 28, 2013—MW 9.4 ppg. Drilled from 8459'to 8774'. CBU. Wiper trip to 7577'. August 29, 2013—MW 9.3 ppg. Finished wiper trip. Drilled to 9173'. August 30,2013—MW 9.5 ppg. Drilled to 9550'. CBU.Wiper trip to 7950'.CBU. August 31, 2013—MW 9.2 ppg. CBU. POOH laying down drillpipe. BHA. September 1, 2013—MW 9.2 ppg. BHA. Installed 7 5/8"casing rams and tested to 250/3000 psi. R/U to run casing. Run 7 5/8", 29.7 ppf casing to 3478'. • • Kenai Loop Well 1-4 PTD 213-091 August 19, 2013—MW 8.8 ppg. Drilled cement from 3035'to 3065'. Drilled new formation to 3085'. Circulated and conditioned mud.Tested shoe to 14.5 ppg EMW. Displaced to 8.8 ppg Kla Shield mud. Drilled to 4450'. August 20, 2013—MW 9.1 ppg. Drilled to 4611'. CBU.Wiper trip to 3065'. Drilled to 5380'. August 21, 2013—MW 9.1 ppg. Drilled to 5811'.CBU.Wiper trip to 4300'. Drilled to 6187'. August 22, 2013—MW 9.2 ppg. Drilled to 6755'.CBU.Wiper trip to 5500'. Drilled to 6895'. August 23,2013—MW 9.1 ppg. Drilled to 7323'.CBU.Wiper trip. August 24, 2013—MW 9.0 ppg. Finished wiper trip to 6450'. Drilled to 7541'. One shaker down. CBU. POOH to test BOPE and repair shaker. August 25, 2013—MW 9.3 ppg. Finished POOH.Tested BOPE 250/5000 psi.Annular 250/2500 psi. Witness waived. P/U bha and RIH. • • Kenai Loop Well 1-4 PTD 213-091 August 12, 2013—MW 9.0 ppg. Make rough cut and remove diverter. Remove starting head. Make final cut and weld on wellhead. Let cool.Test to 1500 psi. N/U BOPE. August 13, 2013—MW 9.0 ppg. N/U BOPE . Pretest all BOPE. August 14, 2013—MW 9.0 ppg. Finished pretesting all BOPE.Attempted to run bond log. RIH with bit and drill pipe to float collar at 2969'.Circulated and conditioned mud. August 15, 2013—MW 9.0 ppg. Circulated and conditioned mud. POOH. Ran bond log. Picked up and stood back drill pipe. August 16, 2013—MW 9.0 ppg. Picked up and stood back drill pipe. Rig maintenance. Wait on orders. August 17, 2013—MW 9.0 ppg. Rig maintenance.Tested BOPE. August 18,2013—MW 9.0 ppg. Finished BOPE test.Witnessed by Jeff Jones. Picked up directional BHA. RIH to 2969'.Tested casing to 3000 psi for 30 minutes. Drilled shoe track to 3035' Kenai Loop Well 1-4 PTD 213-091 August 4, 2013—Work on generator.Change mud pump liners. Pick up drill pipe and stand in derrick. August 5, 2013—MW 8.7 ppg.Work on top drive.Strap casing.Clean out conductor to 138'. Drill new hole from 138'to 190'. August 6, 2013—MW 8.7 ppg. Drilled to 309'. POOH for directional tools. RIH. August 7, 2013—MW 8.9 ppg.Test MWD. Drilled from 309'to 1424'. August 8, 2013—MW 8.9 ppg. Drilled from 1424'to 1991'.CBU.Wiper trip to 1360'. Drilled to 3003'. August 9, 2013—MW 9.0 ppg. Drilled to 3065'. CBU. POOH. Laid down direction tools. RIH . Circulated and conditioned for casing. POOH. August 10, 2013—Finished POOH. Ran 10 3" casing to 3035'.Circulated and cleaned up hole. Run inner cementing string. August 11, 2013—Run inner string. Circulated and conditioned hole. Cemented with 304 bbls of 13.5 ppg cement. Displaced inner string with mud. 50 bbls of cement to surface. POOH with inner string. Prep to N/D diverter.WOC time 12 hrs. r • • Kenai Loop Well 1-4 PTD 213-091 July 28, 2013- Moving and rigging up Glacier Rig 1 on Buccaneer well KL 1-4. July 29, 2013- Rigging up. July 30, 2013- Rigging up. July 31, 2013- Rigging up. Nippling up diverter. August 1, 2013—Rigging up. Raise derrick. Mix spud mud. August 2, 2013—Rig up top drive. Finish diverter line.Test equipment. August 3, 2013—Rigging up.Test diverter.Witnessed by Jeff Jones with AOGCC.Trouble shoot generator problem and PLC problems. — • • 2._\--S- tD() 1 3 ,. ''' -0 ,,,, BCANEER A LUCA S N A September 27, 2013 W.C. Barron Department of Natural Resources Director, Division of Oil & Gas 550 W. 7th Avenue, Suite 1100 Anchorage, Alaska 99501 BY: Facsimile and EMAIL Re: Kenai Loop Well # 1-4 Dear Director Barron, Thank-you for letter dated September 26, 2013, above subject, and we appreciate your continued support for testing the subject well. Based on our experience in the area the 9700' sand is the most prospective, and if any sand package would be in communication with existing wells, which would involve correlative rights to the KL 1-1, it would be KL 1-4 9700' equivalent. The planned well test should determine the KL 1-4 initial reservoir pressure, and when compared to the current reservoir pressure in KL 1-1 and KL-3, will likely be able to see if the wells are in communication. If the pressures are close, then a longer term test, or possible monitoring the pressure in KL 1-4 while KL 1-1 and KL 1-3 are on production for any pressure drop. This can be done without the Glacier drilling rig on location. The other zones can always be tested at a later date if the 9700' sand package is not productive. The immediate objectives of this initial test are limited to pressure communication. We need to get the information before we plan/design an additional test if required. A longer term test to provide sufficient data for a definitive reserve analysis would involve long-term flaring of gas, and in the best interest of the royalty owners it would be good to have allowance to produce 952 Echo Lane,Suite 420,Houston,TX 77024 Office: (713)468-1678 Fax: (713)4768-3717 • the well. In this regard, we would propose an initial view on mapping for a pooling agreement, and, as appropriate, a redetermination if needed. Regards, jilt\k4 Buccaneer Alaska, LLC James S. Watt President & COO CC: Colleen Miller, CIRI Mike Franger, MHT Joe Balash, DNR Acting Commissioner AOGCC 952 Echo Lane,Suite 420,Houston,TX 77024 Office: (713)468-1678 Fax: (713)4768-3717 2- %, 2- - OF�jy,:s� THE STATE Department of Natural Resources ,r�,, vALAsKA. Division of Oil&Gas �� - = Anchorage Office k2=='= 550 W.7th Avenue Suite 1100 ^ti^tiGOVERNOR SEAN PARNELL. Anchorage,Alaska 99501-3560 -0.- Main:907.269.8800 ALAS Fax:907.269.8939 September 26,2013 FACSIMILE and CERTIFIED MAIL RETURN RECEIPT REQUESTED James S. Watt President and Chief Operating Officer Buccaneer Alaska Operations, LLC 952 Echo Lane, Suite 420 Houston,TX 77024 Re: Kenai Loop#1-4 Well Test Dear Mr.Watt: As a result of recent phone discussions with Mark Landt,Vice President of Land & Business Development, Buccaneer Alaska Operations, LLC (Buccaneer), the State of Alaska, Department of Natural Resources (DNR), Division of Oil and Gas (Division) has learned that the well test planned for the Kenai Loop #1-4 well (KL#1-4)will consist of a twenty-four hour draw-down period followed by a twenty-four hour build-up period. The test will be conducted only for the 9.700' sand. According to the KL#1-4 Drilling Report #6, issued by Buccaneer on September 16,2013,the KL#1-4 encountered three prospective gas sands. Conservation Order 676 issued by the Alaska Oil and Gas Conservation Commission (AOGCC) on September 3, 2013 approved the testing of the KL#1-4 contingent upon notice by Buccaneer to Cook Inlet Region, Inc. (CIRI), the Mental Health Trust (MHT) and DNR, and required that no production may begin from the KL#1-4 absent prior written approval of the AOGCC and the filing of a pooling agreement. The Division has serious concerns that the brief test of the single sand is not sufficient to provide adequate data to CIRI,the DNR and the MHT to determine the terms of a pooling agreement. Since the well may not be placed on production without a pooling agreement,Buccaneer's brief test does not protect the interests of the royalty owners. The Division believes that a sustained and thorough test of all three prospective gas sands will best serve the interests of all parties. Sincerely, W.C.Barron Director Cc: Colleen Miller, CIRI Mike Franger,MHT Joe Balash,DNR Acting Commissioner AOGCC (.5:: . ��jj�s\THE STATE l,' - Alaska Oil and Gas e, � 0fALASJ �I 1 Conservation Commission t=== GOVERNOR SEAN PARNELL �T-;'' 333 West Seventh Avenue up, ii.� Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 Stephan L. Ward Operations Manager- Production Buccaneer Alaska Operations, LLC 952 Echo Lane, Suite 420 Houston, TX 77024 Re: Exploratory Field, Kenai Loop#1-4 Sundry Number: 313-506 Dear Mr. Ward: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. This sundry explicitly approves perforating and testing zone 9792-9816'md as proposed for a maximum combined flow period of no more than 48 hrs. Flow testing any additional zones requires separate sundry approval. All well test data acquired shall be shared with the Alaska Mental Health Trust (MHT), Alaska Dept. of Natural Resources (DNR) and Cook Inlet Regional Corporation (CIRI) as specified in Conservation Order 676. This sundry does not authorize regular production from Kenai Loop #1-4. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, ,-, 7iNsi6c_2(.72e_____,____ Cathy P. F•erster Chair, C I mmissioner DATED this&' day of September, 2013. Encl. 0 r RECEIVED STATE OF ALASKA .P 2 0 20,, ALASKA OIL AND GAS CONSERVATION COMMISSION \ p� Z Z APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1.Type of Request: Abandor❑ Plug for Redrili❑ Perforate New Pool❑ Repair Well❑ Change Approved Program 0 Suspenc❑ Plug Perforations 0 Perforate 0 Pull Tubing❑ Time Extension 0 F76c--,Te.s f Operations Shutdowr 0 Re-enter Susp.Well LI Stimulate 0 Alter Casing❑ Other _Prep well for prod 0- 2.Operator Name. 4.Current Well Class: 5. Permit to Drill Number. Buccaneer Alaska Operations,LLC Exploratoryf( Development ❑ 213-091 3.Address Stratigraphic ❑ Service ❑ 6 API Number. 952 Echo Lane.Suite 420,Houston,Tx 77024 50-133-20168-00-00 , 7.If perforating: — 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? 20 AAC 25.055 Kenai Loop#1-4 , Will planned perforations require a spacing exception? Yes ❑ '. No ❑ 9-Property Designation(Lease Number): 10.Field/Pool(s): MHT 9300082 • Kenai Peninsula Exploration 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 11,396 11,198 11,396 11,198 Casing Length Size MD ND Burst Collapse Structural 138' 16" 138' na na Conductor Surface 3054' 5210 2470 � � � Intermediate • r • i 9358' 6890 4790 Production Liner .,1114-112" .,;, 8430 7500 Perforation Depth MD(ft): Perforation Depth TVD(ft). Tubing Size: Tubing Grade: Tubing MD(ft): 2-7/8" L-80 Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): 12.Attachments:.. Description Summary of Proposal [� 13.Welt Class after proposed work: Detailed Operations Program 0 BOP Sketch a Exploratory [I - Stratigraphic❑ Development❑ Service ❑ 14.Estimated Date for 15.Well Status after proposed work: September 20,2013 Commencing Operations. Oil ❑ Gas r; . WDSPL ❑ Suspended 0 16.Verbal Approval: Date: WINJ ❑ GINJ {'..i WAG ❑ Abandoned ❑ Commission Representative: GSTOR El SPLUG El 17. I hereby certify that the foregoing is true and correct to the best of my knowledge, Contact ,,,$','-e/4%44., 4 . 1.12,4e-o'i Email S" e,,,(C ,64.,s+ et 04. .a.44-- ,,e-en-, Printed Namer Titie roe,7 ev, 4. 4) v./ O er-� ,'t b,.$ .11.x,/ . - A-4'4`4 Pix`4)�-, Signature Phone Date COMMISSION USE ONLY Conditions of approval. Notify Commission so that a representative may witness Sundry Number. Plug Integrity D BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ Other ▪ S-ODc) ,pS;... /t&r —i" • L{ k i- /tiiu!-v A -f tr r,-4,c . ,i 4_5[ ted ��-,"-� / Spacing Exception Required'? Yes No 0 Subsequent Form Required: / Y l/ 7 / APPROVED BY Approved by: Y COMMISSIONER THE COMMISSION Date:9` `�.,5—/3 -, -1- .2 Y-/3 Submit Form and Form 10-403(Revised 10t2012) Approv or 2 oaths from the,,date of approval. Attachments in Duplicateo \ pp Acta tsO/ e i�L� • • • Buccaneer Alaska Operations, LLC Kenai Loop #1-4 Drilling Permit #213-091 Completion /Testing Procedure September 20, 2013 Well Conditions • Based upon offset wells,well is considered to have gradient of.48 psi/ft. • See current Well Bore Diagram • Well will be filled with NaCI+ KCI{6%),9.7ppg • Maximum deviation of well is 18 degrees. Hole is vertical across completion intervals • Calculated underbalance when perfs are shot will be+ 1000 psi. Interval to be Tested • 9,792'—9,816' MD V Cased Hole Pre—Completion Rig Work • Tandem bit I scraper run for 4%2" liner and 7-5/8" casing • Verify rams in place for completion tubing workstring. Test BOP—e rams to 5000 psi and record on chart. • Swap wellbore fluid for filtered 9.7 ppg NaCI+ KCI completion fluid and pressure test casing to 3500#and record on chart. , 6, k, Lim �j z• L�� t` S . � Run Cement Bond Log and evaluate same. — tib - Sem 5 C (1.2.1 13 • Run 4%"completion packer and TCP perforating gun assembly w/automatic gun drop assembly on a-line to isolate individual completion test zone. a Packer with "X" profile/wireline re-entry guide set at+1-9,750' MD. {Refer to CBL/GR above and move packer accordingly so seals of packer are not across a collar) ■ Shoot/Test 9,792'—9,816' M� of' .i1- 1. Run and set 4.5" Ultra3_akpacker at 9,750' and gun assembly on a-line. 2. Run 2-7/8"tubing with 2 7/8" seal assembly,X profile, chemical injection mandrel, control line, SCSSSV with control line,tubing hanger, X over to 4%2 IF,drill pipe back to rig floor and tag Ultra Pak packer @ 9,750' MD. Roll pumps and verify seals are engaging PBR by increased pump pressure.Shut down pump. Pick up tubing assembly 10 feet. 3. Before seating seals in packer PBR, reverse circulate packer fluid into annulus. • • 4. Space out to land tubing hanger,engage seals/seat tubing hanger with X-over to drill pipe back to surface. 5. Rig up Halliburton test tree. 6. Rig up Pollard slickline to achieve 1000#underbalanace. (Zone pressure gradient is.48 psi/ft.x 9,593'ND=4604#. 1000# underbalance/.48 psi per foot=2083 feet x.00579 bbl/ft of 2 7/8" tubing= 12 bbl of fluid . Swab 2 7/8"tubing until get 12 barrels of 8.7# brine returns). 7. Pressure test annulus to 2000#and record on chart. 8. Rig up Weatherford testing and pressure test surface equipment and tree to 5000#. 9. Perforate interval 9,792'—9,816'MD w/Halliburton TCP guns 10. Rig up Pollard slickline to set memory gauges in tubing tail 11. Hang electronic memory gauges in tubing 12. Test well 13. Pull memory gauges 14. Set"X"plug in packer at conclusion of test • ND BOP'S • NU tree. • Function test SSSV to insure proper operation • Pressure test tree to 5,000 psi • Set BPV • Move rig off location • Prepare well for production 1. Pull BPV 2. Pull plug in packer at 9,750' MD 3. Secure well and turn well over to production. Notifications • City of Kenai dispatch • Notify AOGCC • Notify FAA • Others as identified Rig Up Testing Surface Equipment • Rig up containment to handle any spills on Weatherford test equipment o Surface Safety Valve(actuator) o Choke manifold o Separator • • o Open top tank with Gas Buster-400 BBL capacity o Flow line from wellhead to Choke Manifold—10K rating o Flowline from Separator to Gas Buster/Flare—2K rating o Run relief line from separator to flare • Berm in test equipment to handle minimum of 400 BBL spill. Note:Open top tank max.capacity . is 80%fill per SPCC plan a Connect test equipment to wellhead per attached schematic Perforate and Test interval#1 in the 4-1/2"Liner • Conduct safety meeting with all personnel concerning perforating,explosives and high pressure procedures before pressure testing/perforating procedures. All non-essential personnel must stay clear of operating areas during pressure testing,arming procedures and pick-up/lay-down procedures. All pressure tests will be done using fluid(either KCL water or methanol water mixture). • Pressure test wireline equipment/grease injection head/lubricator to 5000 psi • Pressure test Weatherford flow test equipment from wellhead to choke manifold to 5000 psi • Perforating guns will be 3-1/8"TCP for the initial zone • Perforating will be done with 8.7ppg KCL fluid in hole for initial zone and 9.7 ppg NaCl/KCI fluid • for second zone. Correlate perforating depths to CBL/GR/CCL • Notify Kenai City dispatch/AOGCC I FAA about possible flaring of gas • Gradually open the well through the choke manifold, unload fluid to the open top tank. When ' flow switches over to methane,ignite flare • Once there is adequate gas to surface,turn well to test separator for cleanup . • After sufficient cleanup,shut well in for 15t pressure build up • After+2 hours of shut in,open well up to choke manifold 10/64"choke size on the variable side. • Gradually step open choke while monitoring flowing tubing pressure and flow rates. • Once a maximum desired flow rate is achieved in the 2"d flow period,flow well at a stabilized • rate for up to 24 hours or until it is felt reservoir limits can be determined. Note: Notify the Kenai dispatch center before beginning second flow period. Be sure to tell them the flow period will be an extended 24 hour period. • Shut well in for 2nd pressure buildup for approximately 24 hours. • • Open well on a positive 10/64" choke. Note:notify Kenai Dispatch/AOGCC/FAA prior to . flaring gas • Conduct a 4-point test using positive pre-determined choke sizes determined by previous flow . data. • Once the 4 point test is concluded,start shut in procedures. • Rig up Pollard slickline to set"X"plug in profile of packer above perforations. • Bleed off pressure to verify plug is holding Operations following well test—Operations Shutdown • Shut SSSV. Release all pressure in 2-7/8"tubing to verify SSSV is operating correctly. • • Secure well. Install Back Pressure Valve below wellhead tree,ensure all valves on tree are securely closed and install tree cap • Rig down and release all testing, Electric Line and Slickline equipment • Remove all valve handles,etc and send to storage for keeping along with ALL of the tree and equipment specification papers. Install fencing around well and well identification sign. • Rig down and move out drilling rig. • Operations shut down. Notify AOGCC and City of Kenai 5.35.080 Shut-in. If a well has been drilled which is or can be made capable of producing gas or oil in com but for which there is a lack of either a market at the well or of an available pipeline outlet in i may be suspended or shut in while the drilling and production permit issued hereunder is still drilling and operation permit shall remain effective, and is automatically continued, during sun periods of suspension or shut-in. The permittee shall give written notice to the City of his or h+ or to shut in the well which notice shall present the reasons therefore and indicate the good fai were made in securing a market or providing for the transportation of the oil or gas. Said suspc will be effective for one(1)year from the date of the notice to the City and may be renewed fc (1)year intervals upon review and public resolution by the City Council. During the suspensic well shall be secured by fence, locks, or other security devices as approved by the City Manag • Secure location and clean up as per agreements with surface land owners, City of Kenai, and AOGCC requirements. • Prep for surface production facility. • Turn well over to production group for flow line construction and connection to production facilities. • Prepare AOGCC forms 10-407 and 10-404 for state commission. i • Permit#: ADL 213-091 ProposedKenai Loop 1-4 API#: 50-133-20168-00-00 a Pad Prop.Des: MHT 9300082 1765' FNL, 1254' FWL KB elevation; 112' (20'AGL) r 174 . 7 .„,„ r,„ 1 ., , :::, . , .;. „. Latitude: 60°34' 12.708" S33 T6N R11W S.M. Longitude: 151° 13'27.893" Solid: 8/5/2013 11 TO: 9/11/2013 Rig Released: Structural Pine 16" NBOHC 84# Top Bottom MD Surf 138' '. i I TVD Surf 138' .1SCSSSV at 600' Surface Casing 1; C e Prt#.set set cn#1800 1d-314" L 80 45.5ppf Top Bottom l MD 0' 3,057' NO 0' 3,051' b DV Collar @ 4499'MD 4491'TVD jntemwediate Casing(Proposed) 7-518" L-80 29.7 ppf y Top Bottom MD b' 9,474' Max inc 18.391 TVD Q' 9,277' Liner 4-112" L-80 12.6 ppf Hydric 563 Top Bottom MD 9,273' 11394' I ND 9,076' 11159' - Baker Flex Lok Liner Hanger I Tubiracs(proposed) wf ZXP Pkr and PBR I I 2 718" L-80 ppf top @ 9273'MD 9076'ND i Top Bottom MD 0' 9,750' t ', TSD 0' 9,549' h .4 h v, ., ''.i 4.1/;:';,a<RY 4'r' a` ' ' ,.y tt, /"It ?Y VV'; €: A M 2C! ' 2 fti73 9 = s - . t q;" ',4P1 x� PA? rz Ili .., 11,,,`Y{:€' n PBTO I 11396'MD 11,020'MD I. 11,198'ND � i 10,793'TVD Well Name&Number. Kenai Loop#4 Lease: Kenai Loop County or Parish. Kenai Penisula Borough State: Alaska 1 Country:I USA Perforations(MD): Perf(ND): Angle @KOP and Depth. Angle @ Perfs. KOP TVD. Date Completed: RKB: 20' Prepared By: Craig Rang Last Revision Date: September 20,2013 • I BUCCANEER GLACIER 11" 10M BOP STACK ANNULAR 41.5"TALL 11" 5M SHAFFER SPHERICAL 9,550# get eis sat ADAPTER SPOOL 18"TALL 11" 10MX11"SM DOUBLE GATE 41"TALL issli DRESSED W/PIPE RAMS 11" 10M SHAFFER SI In 11,720# DRESSED WJBLIND RAMS DRLG SP 24"TALL x`x x:s zuir 111 ' ;H y:Heel SINGLE GATE 23.5°"TALL DRESSED W/PIPE RAMS 11" 1DM SHAFFER Sl. -11 Inn '• 7,490# DOUBLE AND SINGLE GATE BOPS MEASURE 123", END TO END TOTAL STACK HEIGHT MEASURES 148" UPPER PIPE RAMS are to be dressed initially with 2-7/8-- 5"variable, BLIND RAMS--4" LOWER PIPE RAMS are to be dressed with 2-7/8" NOTE: Full opening safety valve and inside BOP for drill pipe in use to be kept on rig floor at easy access at all times(2 EA). Test BOP's, choke manifold, Hydric, kelly cock, FOSV, and IBOP, rotary hose and standpipe valve to BOP rated working pressure when installed, at least every 7 days thereafter, and at each break. Work BOP's and flush choke lines each trip. Tighten BOP and wellhead bolts every three-(3) days. Test pressure and minimum WP of BOP equipment below surface casing should be 5,000 psi or as programmed. Full opening safety valve to be run on bottom of kelly at all times. Verify closing pressures meet specifications: Accumulator pressure- ±3000 psi Manfold pressure for rams- ±1500 psi Annular closing pressure- ±700 psi , . _ — 2 . • . 0 e 1 1 I ilf1111 L, PIP pilipplip iyiFi '-'16k : i.,.. di 1,, 119 .10LH,,p ,„11 yr Ti I , HIT I —I . 1 ) i t i 1 illfilltil f P A IP II 10 If if ,,, . , 4 ii1 pililio III i - i 1 klitk f _ -.T.rpmrrili,..,mp,',,, ii,',11' PI, tir4+,' . , , I , I WI, ;:. al el 1 q I 1 il 1. i , X..act 071,,a .1 z z.n.mg. 0 ., , UNE HEATER Ui-05 0 ft x IT1 71 1 i Xi to '`"t 'A a A ..,.. : at 044 0.4104 4 ., a :t :;:;•‘::-al ta:-' , iEllIgtg " 044 4 1P2 40 i 2: -: ,ti f? g4 0 ----4"----' 0,-/k4AFJ /1 I -XtEQiii tildii? 1 R . I • 9 2, P . mit/WNW 4,,.., ! g;E2ig g:::''' S Ur •P: E,.,lig.x tiliF77''' A I 6.11-0 ; ...... . . 1 i,R§4/ f7 iilityl I 1 '7 . ;IA I—"--1 , .‘,...,. .. . . ,.. 1 Atli ail ' II z 1 2 1 • :---1 • . u) I t 0 I E g 1 In x 2 i i 4g 51 ' — , h' ti 2 Zr Ill ..... . 0 1 i 1 • S Schwartz, Guy L (DOA) From: Mark Landt <mlandt@buccaneerenergy.com> Sent: Tuesday, September 24, 2013 2:34 PM To: Schwartz, Guy L (DOA) Cc: crang@allamericanoilfield.com;Andy Rike; Steve Ward;Vijay Bangia Subject: FW: KL 1-4 flow test sundry(PTD 213-091) Guy, Please withdraw sundry 313-494 for flow testing well KL#1-4. This was the first sundry submitted that did not have any specific depths listed. We have since submitted another sundry(313-506) to flow test the well (upper zone only ). Please let me know if you need a formal letter. Thanks, 9/1444 Mark R. Landt Vice President, Land & Business Development Buccaneer Alaska, LLC 952 Echo Lane, Suite 420 Houston,Texas 77024 (214) 738-6945—Cell (713)468-1678—Work www.buccenergy.com From:Schwartz,Guy L(DOA) [ ilto:guy.schwartz@alaska.gov] Sent:Tuesday, September 24, 2013 5:18 PM To: Mark Landt; Craig Rang( ') flamer ,noilfield.com) Subject: KL 1-4 flow test sundry(PTD 213-091) Mark/Craig: Could you request a withdraw of sundry 313-494 for flow testing well KL#1-4. This is the first sundry submitted that did not have any specific depths listed. You have since submitted another sundry(313-506) to flow test the well (upper zone only). Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office 1 - • • RECEIVED STATE OF ALASKA SEP 17 2013 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandor ❑ Plug for Redrill ❑ Perforate New Pool❑ Repair Well❑ Change Approved Program❑ Suspenc❑ Plug Perforations❑ Perforate❑ Pull Tubing ❑ dim Extension ❑ \NeiI /e.51" Operations Shutdowr ❑ Re-enter Susp.Well ❑ Stimulate❑ Alter Casing Li Other. _Prep well for prod CI 2.Operator Name: 4.Current Well Class: 5. Permit to Drill Number: Buccaneer Alaska Operations, LLC Exploratory 0 Development ❑ 213-091 3.Address: Stratigraphic ❑ Service C] 6.API Number: 952 Echo Lane,Suite 420,Houston,Tx 77024 50-133-20168-00-00 7. If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? 20 AAC 25.055 Kenai Loop# 1-4 Will planned perforations require a spacing exception? Yes 7 No ❑ 9.Property Designation(Lease Number): 10. Field/Pool(s): MHT 9300082 Kenai Peninsula Exploratio' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Pegs(mk ` ur d): Junk(measured): 11,396 11,198 11,396 11,19: ,k , Casing Length Size MD TVD � Burst Collapse Structural 138' 16" 138' 138' "7) na na Conductor r>1 Surface 3057' 10-3/4" 3057' 3054' 5210 2470 Intermediate 9550' 7-5/8" 9550' 9 8' 6890 4790 Production Liner 4-1/2" 8430 7500 Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 2-7/8" 1 L-80 Packers and SSSV Type: ('ac er; and SSSV MD(ft)and TVD(ft): n_ 12.Attachments: Description Summary of Proposal 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ ` xploratory ❑ Stratigraphic❑ Development❑ Service ❑ 14.Estimated Date for 15.Well Status after proposed work: September 0,2t. 3 Commencing Operations: •il ❑ Gas E WDSPL ❑ Suspended ❑ J 16.Verbal Approval: D te: WINJ C] GINJ 111WAG ❑ Abandoned ❑ Commission Representative: ft, GSTOR ElSPLUG ❑ 17. I hereby certify that the foregoing is true and corn. t to the • my knowledge. Contact 5/'e,0(v t ,4 . .r.i.44r4-li Printed Name / Title Email .S444Jr-(pc 64,44 At ear est a.-4,...c,:,-A,,:,-A,c�treetit" Gn C. 4)00,, ®r 2Ye//cot.; 111-4.-&45..4,- /-— O'OaiiG ill,`v.� Signature / Phone Date .lam 7/3 -YG9 -/471 9./i6/i3 COMMISSION USE ONLY Conditions of approval: Notify Com • sion so that a representative may witness Sundry Number: _ 14_.(k Lk Plug Integrity ❑ ,:OP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: P� ' Spacing Excep/ n Required? Yes ❑ No ❑ Subsequent Form Required: d( _ Li V ;tom APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: R I GdifoN AJ,r Submit Form and Form 10-403(Revised 10/2012) Approved ap a rom thedate of approval. Attachments in Duplicate • • Buccaneer Alaska Operations, LLC Kenai Loop #1-4 Drilling Permit #213-091 Completion /Testing Procedure September 16, 2013 Well Conditions • Based upon offset wells,well is considered to have gradient of.48 psi/ft. • See current Well Bore Diagram • Well will be filled with KCI (6%), 8.7ppg initially. 9.7ppg NaCL/KCI will be used for packer fluid and kill fluid prior to peforating 2nd interval. • Maximum deviation of well is 18 degrees. Hole is vertical across completion intervals • Calculated underbalance when perfs are shot will be+ 1000 psi. Preliminary Proposed Intervals to be Tested • 10,xxx'—10,xxx' MD • 9,xxx'—9,xxx' MD Note: Depending on additional detailed log analysis, more or less zones may be tested. Cased Hole Pre—Completion Rig Work • Tandem bit /scraper run for 41/2" liner and 7-5/8" casing • Verify rams in place for completion tubing workstring. Test BOP—e rams to 5000 psi and record on chart. • Swap wellbore fluid for filtered 8.7 ppg KCI completion fluid and pressure test casing to 3500# and record on chart. • Run Cement Bond Log and evaluate same. • Run 41/2" completion packer and TCP perforating gun assembly on e-line to isolate individual completion test zone. o Packer with "XN" profile/wireline re-entry guide set at 10,xxx' MD • Shoot/Test 10,xxx'—10,xxx' MD 1. Run and set 4.5" Ultra Pak packer at xxxxx'and gun assembly on e-line. 2. Run 2-7/8" tubing with 4" seal assembly and sting into ZXP packer @ 9200' MD. Close rams on. 3. Pressure test annulus to 2000#and record on chart. 4. Perforate interval 10,xxx'—10,xxx' MD w/2.75" guns, 60 degree phasing, 6 shots per foot. • • 5. Hang electronic memory gauges below tubing tail 6. Test well 7. Set "XN" plug in packer at conclusion of test 8. Move up to next interval • Bleed off pressure. Check to insure plug is holding. Open rams and PU 2-7/8" tubing out of ZXP packer approximately 50'. Circulate 9.7 ppg NaCI/KCI fluid in annulus and 2-7/8" tubing. POOH with 2-7/8"tubing and stand in derrick. o Packer with "X" profile/wireline re-entry guide to be set at 9,xxx' MD on e-line prior to perforating and testing ■ Shoot/Test 9,xxx'—9,xxx' MD 1. Run 4.5" packer with tubing tail including"X" profile nipple and WLEG and set at 9,xxx' MD. RD e-line. 2. RBIH with 2-7/8"tubing with 4" seal assembly and sting into ZXP packer @ 9200' MD. Close rams on 2-7/8"tubing. 3. Pressure test annulus to 2000 psi and record on chart. 4. Perforate 9,xxx'—9,xxx' MD using 2" hollow carrier guns, 60 degree phasing, 6 shots per foot. 5. Hang electronic memory gauges above perforated interval 6. Test well. 7. Set "X" plug in packer at conclusion of test • Bleed off pressure. Check to insure plug is holding. Open rams and PU 2-7/8" tubing out of ZXP packer approximately 50'. Circulate 9.7 ppg NaCI/KCI fluid in annulus and 2-7/8"tubing. POOH with 2-7/8" tubing and stand in derrick. Inspect seal assembly and replace as necessary. Test BOPE as required. • Run 2-7/8" production tubing with seal assembly for ZXP packer, chemical injection mandrel with dummy valve and SCSSSV. Before seating seals in packer PBR, reverse circulate packer fluid into annulus. Seat seal assembly, pressure test annulus to 2000#, record pressure test on chart, NU tree. • Function test SCSSSV to insure proper operation • Pressure test tree to 10,000 psi • Move rig off location • Prepare well for production 1. Pull plug in packer at 9,xxx' MD 2. Pull plug in packer at 10,xxx' MD Notifications • City of Kenai dispatch • Notify AOGCC • Notify FAA • Others as identified • • Rig Up Testing Surface Equipment • Rig up containment to handle any spills on Weatherford test equipment o Surface Safety Valve (actuator) o Choke manifold o Separator o Open top tank with Gas Buster-400 BBL capacity o Flow line from wellhead to Choke Manifold—10K rating o Flowline from Separator to Gas Buster/ Flare—2K rating o Run relief line from separator to flare • Berm in test equipment to handle minimum of 400 BBL spill. Note: Open top tank max. capacity is 80%fill per SPCC plan • Connect test equipment to wellhead per attached schematic Perforate and Test Interval#1 in the 4-1/2"Liner • Conduct safety meeting with all personnel concerning perforating, explosives and high pressure procedures before pressure testing/perforating procedures. All non-essential personnel must stay clear of operating areas during pressure testing, arming procedures and pick-up/lay-down procedures. All pressure tests will be done using fluid (either KCL water or methanol water mixture). • Pressure test wireline equipment/grease injection head/lubricator to 5000 psi • Pressure test Weatherford flow test equipment from wellhead to choke manifold to 5000 psi • Perforating guns will be 3-1/8"TCP for the initial zone with 60 degree phasing @ 6 spf. • Perforating will be done with 8.7ppg KCL fluid in hole for initial zone. Correlate perforating depths to CBL/GR/CCL • Notify Kenai City dispatch/AOGCC/ FAA about possible flaring of gas • Gradually open the well through the choke manifold, unload fluid to the open top tank. When flow switches over to methane, ignite flare • Once there is adequate gas to surface,turn well to test separator for cleanup • After sufficient cleanup, shut well in for 1st pressure build up • After+2 hours of shut in,open well up to choke manifold 10/64" choke size on the variable side. • Gradually step open choke while monitoring flowing tubing pressure and flow rates. • Once a maximum desired flow rate is achieved in the 2nd flow period,flow well at a stabilized rate for up to 24 hours or until it is felt reservoir limits can be determined. Note: Notify the Kenai dispatch center before beginning second flow period. Be sure to tell them the flow period will be an extended 24 hour period. • Shut well in for 2"d pressure buildup for approximately 24 hours. • Open well on a positive 10/64" choke. Note: notify Kenai Dispatch/AOGCC/ FAA prior to flaring gas • Conduct a 4-point test using positive pre-determined choke sizes determined by previous flow data. • Once the 4 point test is concluded, start shut in procedures. • • • Rig up Pollard slickline to set"XN" plug in profile of packer above perforations. • Bleed off pressure to verify plug is holding • Repeat perforating/flow back/shut-in procedure for all subsequent zones to be tested starting with safety meeting. Note: any connections that are broken must be re-pressure tested to 5000 psi. Operations following well test—Operations Shutdown • Shut SCSSSV. Release all pressure in 2-7/8"tubing to verify SCSSSV is operating correctly. • Secure well. Install Back Pressure Valve below wellhead tree, ensure all valves on tree are securely closed and install tree cap • Rig down and release all testing, Electric Line and Slickline equipment • Remove all valve handles, etc and send to storage for keeping along with ALL of the tree and equipment specification papers. • Rig down and move out drilling rig. • Operations shut down. Notify AOGCC and City of Kenai 5.35.080 Shut-in. If a well has been drilled which is or can be made capable of producing gas or oil in corn: but for which there is a lack of either a market at the well or of an available pipeline outlet in t may be suspended or shut in while the drilling and production permit issued hereunder is still drilling and operation permit shall remain effective, and is automatically continued, during suc periods of suspension or shut-in. The permittee shall give written notice to the City of his or h+ or to shut in the well which notice shall present the reasons therefore and indicate the good fai were made in securing a market or providing for the transportation of the oil or gas. Said suspc will be effective for one(1) year from the date of the notice to the City and may be renewed fc (1)year intervals upon review and public resolution by the City Council. During the suspensic well shall be secured by fence, locks, or other security devices as approved by the City Manag • Secure location and clean up as per agreements with surface land owners, City of Kenai, and AOGCC requirements. • Prep for surface production facility. • Turn well over to production group for flow line construction and connection to production facilities. Install wellhouse and well identification sign. • Prepare AOGCC forms 10-407 and 10-421 for state commission. . _ . Pro osed Kenai Loo 1-4 Permit#: ADL 213-091 i ; p p API #: 50-133-20168-00-00 Pad 1 Prop. Des: MHT 9300082 1765' FNL, 1254' FWL KB elevation: 112' (20'AGL) Latitude: 60°34' 12.708" r 3 S33 T6N R11W S.M. Longitude: 151° 13'27.893" L I - - Spud: 8/5/2013 TD: 9/11/2013 Rig Released: Structural Pipe 16" N80HC 84# Top Bottom MD Surf138' ]Aucititi it. TVD Surf 138' I Surface Casing 10-3/4" L-80 45.5ppf Top Bottom i'IIi MD 0' 3,057' TVD 0' 3,051' DV Collar @ 4499'MD 4491'TVD Intermediate Casing(Proposed) 7-518" L-80 29.7 ppf • \ Top Bottom MD 0' 9,474' Max Inc 18.39) TVD 0' 9,277' Liner (Proposed) ® 4-112" L-80 12.6 ppf Hydril 563 ® Top Bottom o MD 9,200' 11396' TVD 9,004' 11198' (Proposed)Baker Flex Lok Liner . j " LI . Hanger �♦ FA '`� I D Tubing(proposed) wl ZXP Pkr and PBR 2 718" L-80 ppf top @ 9200'MD Top Bottom MD 0' 9,200' TVD 0' 9,004' packer w/sealbore extension/"X"profile Proposed I. Perforations packer w/sealbore extension/"X"Profile IM.ii7 TD PBTD 11396'MD 'MD 11,198'TVD 'TVD Well Name&Number: Kenai Loop#4 Lease: Kenai Loop County or Parish: Kenai Penisula Borough State: Alaska Country: USA Perforations(MD): Perf(TVD): Angle @KOP and Depth Angle @ Perfs: KOP TVD: Date Completed: RKB: 20' Prepared By: Last Revision Date: • • BUCCANEER GLACIER 11" 10M BOP STACK ANNULAR 41.5" TALL 11" 5M SHAFFER SPHERICAL 9,550# si%a%ehlib dit ADAPTER SPOOL 18" TALL 11" 10MX11" 5M DOUBLE GATE 41" TALL art 01 DRESSED W/PIPE RAMS 11" 10M SHAFFER SL 11, 720# DRESSED W/BLIND RAMS DRLG SP 24" TALL _ _ (x�z)=II-!xyz;; III 3-1/16i2d6Y 1 (6.)11 (?:L) 111 1 SINGLE GATE 23.5"TALLaziCI DRESSED W/PIPE RAMS 11" 10M SHAFFER SL •• .• 7,490# DOUBLE AND SINGLE GATE BOPS MEASURE 123", END TO END TOTAL STACK HEIGHT MEASURES 148" UPPER PIPE RAMS are to be dressed initially with 2-7/8— 5" variable, BLIND RAMS-4" LOWER PIPE RAMS are to be dressed with 2-7/8" NOTE: Full opening safety valve and inside BOP for drill pipe in use to be kept on rig floor at easy access at all times (2 EA). Test BOP's, choke manifold, Hydril, kelly cock, FOSV, and IBOP, rotary hose and standpipe valve to BOP rated working pressure when installed, at least every 7 days thereafter, and at each break. Work BOP's and flush choke lines each trip. Tighten BOP and wellhead bolts every three-(3) days. Test pressure and minimum WP of BOP equipment below surface casing should be 5,000 psi or as programmed. Full opening safety valve to be run on bottom of kelly at all times. Verify closing pressures meet specifications: Accumulator pressure- ±3000 psi Manfold pressure for rams- ±1500 psi Annular closing pressure- ±700 psi r • I I . . o g ;NI ., Jo F Y Q a= 3 z jN u 0 111E===4===15; u1 1 t 5 ¢Z M j O O QQ Y N w N UU E5 ob F O w a 8 3 o f a Nt $ t 4 a aL Jn T q.ci- ,¢ _ F-= i. ! [ -AI `" m U 5 z .1 4T3r) , Q t }0-- ,; E ; 'I. 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Zwa I I zlnamao:w 1 a B 1$ II! � 1�111 '1111114 1 114 11:4141:1414111110411111 g g g g 'g' 00 'i:iitiaig;ibs;6giiiiiiei:eeU 0 i g - n� 4 :: h$ Ali 1 111 11 h Rig 11 i le 8 i 1111ii 1 f-1 pr11 1 4-4 I+1. -'11 eft III a $Igill$II g$ lliiI b 9t 4 j'oTY } 16 E • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Sunday, September 22, 2013 10:25 AM To: 'Craig Rang';Vijay Bangia;Andy Rike Cc: 'Davies, Stephen F (DOA) (steve.davies@alaska.gov)' Subject: RE: Revised 10-403 KLU 1-4 (PTD 213-091) Craig, This procedure is to test only one zone? I understood you had possibly three zones to test? I am assuming this is a revision to the sundry submitted last week and the earlier version is superseded. Commission will give verbal approval to set TCP guns and packer on Eline as proposed in your updated sundry application. 5o(. y.4•r3 You may not perforate or test this zone until the sundry(#313 "is approved and requirements under CO 676 are met. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Craig Rang [mailto:crang@allamericanoilfield.c( ] Sent: Friday, September 20, 2013 3:55 PM To: Vijay Bangia; Andy Rike Cc: Schwartz, Guy L(DOA) Subject: Revised 10-403 Vijay: Added entries into the 10-403 for the AOGCC and copies of the procedure/WBD. Regards, Craig Rang Guy: if you can give us a verbal to run and set the production packer over the weekend, it would be much appreciated. Thanks, Craig Rang 1 • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Monday, September 23, 2013 2:59 PM To: Mark Landt (mlandt@buccaneerenergy.com) Cc: 'Ballantine,Tab A (LAW)'; 'Davies, Stephen F (DOA) (steve.davies@alaska.gov)'; 'Roby, David S (DOA) (dave.roby@alaska.gov)' Subject: KL 1-4 testing (PTD 213-091) Mark, As per our last phone conversation the Commission can not authorize testing of the well KL 1-4(PTD 213-091)at this time.CIRI has filed an appeal to Conservation order 676 regarding the testing of the well. Until we have had a chance to react to this appeal we cannot issue approval to test as we were planning to do. The case number for your information is 3AN-13-09521CI You do however have verbal approval to continue to run the completion as proposed, rig up production tree, and suspend the well in a safe manner. This would allow you to move the drilling rig (Glacier) off location until our Dept of Law has time to give us some direction. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office 1 • Review of Sundry Application 313-506 Buccaneer Alaska Operations, LLC. Well Kenai Loop#1-4 AOGCC Permit 213-091 Requested Action: Buccaneer Alaska Operations, LLC (Buccaneer) proposes to flow test the subject well. Recommendation: I recommend approval of Sundry Application 313-506. Discussion: Buccaneer proposes to flow test the subject well. Conservation order 676 (CO 676) approved a spacing exception to allow Buccaneer to drill and flow test the subject well but prohibited regular production without a pooling agreement. Flow testing was contingent upon Buccaneer providing notice to CIRI, DNR and the MHT and agreeing to provide all data obtained as a result of the test to both CIRI and DNR. Buccaneer has provided notice to the three parties and has agreed to provide the data to DNR and CIRI. By letter dated September 19, 2013, the DNR stated that they do not oppose the proposed testing of the well but the request that the AOGCC order Buccaneer to test for connectivity between the subject and existing wells (which DNR notes that Buccaneer has stated they will) and test for reservoir boundaries (which DNR notes Buccaneer has not committed to do). Conclusion: Buccaneer has met the requirements to test the well that were set forth in CO 676. While testing for reservoir boundaries would be useful for determining whether or not the reservoir extends onto CIRI and/or DNR land it is not a critical component of the proposed testing (however, it would be very useful information to have when negotiating a pooling agreement for this well). The CO 676 prohibition on regular production from the well without a pooling agreement will remain in place and thus protect the correlative rights of the potentially impacted parties. D.S. Roby��`� Sr. Reservoir Engineer September 23, 2013 • • or hw �\\I%%/ e THE STATE Department of Natural Resources �Z �► o�ALAS� Division of Oil&Gas - Anchorage Office RECEIVED 550 W.7th Avenue Suite 1100 �, GOVERNOR SEAN PARNELL Anchorage,Alaska 99501-3560 SEP 2 0 2013 Main:907.269.8800 ALASKA Fax:907.269.8939 AOGCC September 19, 2013 HAND DELIVERY Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: Notice of Intent to Test Kenai Loop#1-4 Well Dear Chair Foerster: The State of Alaska (State), Department of Natural Resources (DNR), Division of Oil and Gas (Division) has reviewed the September 17, 2013 Notice of Testing for Kenai Loop No. (KL #) 1-4 well issued by Buccaneer Alaska Operations, LLC (Buccaneer). Division personnel have discussed the proposal with Buccaneer's Mark Landt. He confirmed that Buccaneer will provide the State with all data obtained from the test without requiring the State to first execute proposed confidentiality agreements that Buccaneer sent the State because the Division is already subject to statutory confidentiality restrictions — AS 38.05.035(a)(8). Mr. Landt also confirmed that Buccaneer's testing of KL # 1-4 would include, but not necessarily be limited to, testing to confirm or deny connectivity between KL # 1-1, KL # 1-3, and KL # 1-4. He did not confirm that Buccaneer would also test for reservoir limits and boundaries, but he did not rule it out. Mr. Landt also confirmed that the State would be provided with all well data and well test results. The DNR does not oppose the proposed testing of KL # 1-4 so long as Buccaneer provides the State with all data obtained, including all test results, and that the testing include the connectivity test mentioned above. But because connectivity and reservoir boundaries are important to the resolution of the issues at hand, particularly correlative rights, the Division requests that the Alaska Oil and Gas Conservation Commission order Buccaneer to test for connectivity between wells KL # 1-1, KL # 1-3, and KL # 1-4 and to also test for reservoir limits and boundaries to ensure that these tests are performed. •esting of Kenai Loop #1-4 Well • September 19, 2013 Page 2 of 2 Nothing herein is intended to limit the well tests Buccaneer may perform; the intent is instead to require that Buccaneer perform connectivity and reservoir boundary tests and share all data, including all test results with the interested parties. Sincerely, W.C. Barron Director cc: Colleen Miller, CIRI Mike Franger, MHT Mark Landt, Buccaneer ?ECEIVED , AOGGCU � ( t3- -- SEP 1 72013 PucA R Rye September 17, 2013 CONFIDENTIAL HAND DELIVERED ALASKA MENTAL HEALTH TRUST LAND OFFICE Alaska Department of Natural Resources 2600 Cordova Street,Suite 100 Anchorage,AK 99503 Attn: Mike Franger,Land Manager STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 Attn: William Barron Director COOK INLET REGION, INC. P.O. Box 93330 Anchorage AK 99509-3330 Attn: Ethan Schutt Senior Vice President,Land and Energy Re: Kenai Loop No. 1-4 Well Notice of Testing Gentlemen: Pursuant to Conservation Order No. 676 dated September 3, 2013, Buccaneer Alaska Operations, LLC (Buccaneer)hereby provides notice that Buccaneer proposes to test the Kenai Loop 1-4 well in the following intervals: 1)9794-9812' MD 2) 10125-10150' MD 3) 10435-10455' MD Also in accordance with Conservation Order No. 676, Buccaneer agrees to provide all data obtained as a result of the test to both CIRI and DNR upon agreement to maintain the information as confidential. Please call me at(214) 738-6945 if you have any questions. 952 Echo Lane,Suite 420,Houston,TX 77024 Office: (713)468-1678 Fax: (713)468-3717 • 411 Page 2 Kenai Loop No. 1-4 Well Notice of Testing September 17,2013 Sincerely, 114#91j Mark R. Landt Vice President,Permitting &Regulatory Cc Steve Davies AOGCC 333 West 7'h Avenue,Suite 100 Anchorage,Alaska 99501 ACKNOWLEDGED RECEIPT THIS 17th DAY OF SEPTEMBER, 2013 MENTAL HEALTH TRUST By: COOK INLET REGION, INC. By: DEPARTMENT OF NATURAL RESOURCES By: • . RECEIVED SEP 1 1 Mark Landt AOCCC From: Colleen Miller <cmiller@ciri.com> To: Mark Landt Sent: Tuesday, September 17, 2013 2:49 PM Subject: Read: Notice of Testing Kenai Loop No. 1-4 Well Your message To: Colleen Miller Subject: Notice of Testing Kenai Loop No. 1-4 Well Sent:Tuesday, September 17, 2013 2:23:44 PM (UTC-09:00) Alaska was read on Tuesday, September 17, 2013 2:49:11 PM (UTC-09:00) Alaska. 1 copY . • RECEIVED SEN 17 �` rt @ ' gr . AOGCC SEP 1 DIVISION OF BUCCANEER ply,AND GAS September 17, 2013 CONFIDENTIAL HAND DELIVERED ALASKA MENTAL HEALTH TRUST LAND OFFICE Alaska Department of Natural Resources 2600 Cordova Street,Suite 100 Anchorage,AK 99503 Attn: Mike Franger,Land Manager STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 Attn: William Barron Director COOK INLET REGION, INC. P.O. Box 93330 Anchorage AK 99509-3330 Attn: Ethan Schutt Senior Vice President,Land and Energy Re: Kenai Loop No. 1-4 Well Notice of Testing Gentlemen: Pursuant to Conservation Order No. 676 dated September 3, 2013, Buccaneer Alaska Operations, LLC (Buccaneer)hereby provides notice that Buccaneer proposes to test the Kenai Loop 1-4 well in the following intervals: 1)9794-9812' MD 2) 10125-10150' MD 3) 10435-10455' MD Also in accordance with Conservation Order No. 676, Buccaneer agrees to provide all data obtained as a result of the test to both CIRI and DNR upon agreement to maintain the information as confidential. Please call me at(214) 738-6945 if you have any questions. 952 Echo Lane,Suite 420,Houston,"IX 77024 Office: (713)468-1678 Fax: (713)468-3717 copy • • Page 2 Kenai Loop No. 1-4 Well ► /� Notice of Testing V {� September 17,2013 SEP 1 7 2013 Sincerely, DIVISION OF 4(0 L,AND GAS Mark R. Landt Vice President,Permitting & Regulatory Cc Steve Davies AOGCC 333 West 7th Avenue,Suite 100 Anchorage,Alaska 99501 ACKNOWLEDGED RECEIPT THIS 17th DAY OF SEPTEMBER, 2013 MENTAL HEALTH TRUST By: COOK INLET REGION, INC. By: DEPARTMENT OF NATURAL RESOURCES By: • 11, Ktc tIvIt s ic i' It 7 Mark Landt AOGCC From: Dowdy, Alicia G (DNR) <alicia.dowdy@alaska.gov> To: Mark Landt Sent: Tuesday, September 17, 2013 3:12 PM Subject: Read: Notice of Testing Kenai Loop No. 1-4 Well Your message To: Subject: Notice of Testing Kenai Loop No. 1-4 Well Sent: Tuesday, September 17, 2013 11:12:38 PM (UTC) Monrovia, Reykjavik was read on Tuesday, September 17, 2013 11:11:54 PM (UTC) Monrovia, Reykjavik. 1 C 0 y • 411 RECEIVED SES i7 ;' Mark Landt An�r:r; From: Barron,William C (DNR) <bill.barron@alaska.gov> To: Mark Landt Sent: Tuesday, September 17, 2013 2:26 PM Subject: Read: Notice of Testing Kenai Loop No. 1-4 Well Your message To: Subject: Notice of Testing Kenai Loop No. 1-4 Well Sent:Tuesday, September 17, 2013 10:25:55 PM (UTC) Monrovia, Reykjavik was read on Tuesday, September 17, 2013 10:25:50 PM (UTC) Monrovia, Reykjavik. copY j_DD 1 • • aA08 117 408 1., 1-60 13-1 RECEIVED 13u.ccANkal SEP 17 2:6*,-, AOGGC September 17, 2013 CONFIDENTIA L HAND DELIVERED ALASKA MENTAL HEALTH TRUST LAND OFFICE Alaska Department of Natural Resources 2600 Cordova Street,Suite 100 Anchorage,AK 99503 Attn: Mike Franger,Land Manager STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 Attn: William Barron Director COOK INLET REGION, INC. P.O. Box 93330 Anchorage AK 99509-3330 Attn: Ethan Schutt Senior Vice President,Land and Energy Re: Kenai Loop No. 1-4 Well Notice of Testing Gentlemen: Pursuant to Conservation Order No. 676 dated September 3, 2013, Buccaneer Alaska Operations, LLC (Buccaneer)hereby provides notice that Buccaneer proposes to test the Kenai Loop 1-4 well in the following intervals: 1)9794-9812' MD 2) 10125-10150' MD 3) 10435-10455' MD Also in accordance with Conservation Order No. 676, Buccaneer agrees to provide all data obtained as a result of the test to both CIRI and DNR upon agreement to maintain the information as confidential. Please call me at(214) 738-6945 if you have any questions. 952 Echo Lane,Suite 420,Houston,TX 77024 Office: (713)468-1678 Fax: (713)468-3717 • • Page 2 Kenai Loop No. 1-4 Well Notice of Testing September 17,2013 Sincerely, 164,#-.)a Mark R. Landt Vice President,Permitting &Regulatory Cc Steve Davies AOGCC 333 West Th Avenue,Suite 100 Anchorage,Alaska 99501 ACKNOWLEDGED RECEIPT THIS 17th DAY OF SEPTEMBER, 2013 MENTAL HEALTH TRUST By: A411 ee COOK INLET REGION, INC. By: DEPARTMENT OF NATURAL RESOURCES By: • • SEP 1 7 26,E Mark Landt AOGCC From: Franger,James M (DNR) <mike.franger@alaska.gov> To: Mark Landt Sent: Tuesday, September 17, 2013 3:42 PM Subject: Read: Notice of Testing Kenai Loop No. 1-4 Well Your message To: Subject: Notice of Testing Kenai Loop No. 1-4 Well Sent:Tuesday, September 17, 2013 11:41:59 PM (UTC) Monrovia, Reykjavik was read on Tuesday, September 17, 2013 11:41:49 PM (UTC) Monrovia, Reykjavik. IhECEIVED SEP 1 7 Zit$ air AOGCC Buc ANi�E•R September 9,2013 Alaska Mental Health Trust Land Office 2600 Cordova,Suite 100 Anchorage, Alaska 99503 Attn: Mike Franger STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 Attn: William Barron Director COOK INLET REGION, INC. P.O.Box 93330 Anchorage AK 99509-3330 Attn: Ethan Schutt Senior Vice President,Land and Energy Re: Kenai Loop 1-4 Well Confidentiality Release MHT-9300082 Gentlemen, This letter seeks release of confidentiality pursuant to Paragraph 7(c)(4) of that certain Negotiated Oil & Gas Lease dated February 1, 2011 between the Mental Health Trust Authority ("MHT") and Buccaneer Alaska, LLC ("Buccaneer") ("MHT-9300082) to allow Buccaneer to divulge and make available any test data, including the logs from the Kenai Loop No. 1-4 Well ("Data"), to both the Department of Natural Resources,Division of Oil & Gas,State of Alaska ("DNR")and Cook Inlet Regional,Inc,("CIRI"). This request is in anticipation of a proposal to test the Kenai Loop No.1-4 Well pursuant to Conservation Order No. 676.By signing below,DNR acknowledges the Data shall be considered confidential under state law(AS 38.05.035(a)(8))and shall not to be disclosed to third parties. Likewise,by signing this letter and the attached Confidentiality Agreement, CIRI acknowledges the Data shall be considered confidential and shall not to be disclosed to third parties. 952 Echo Lane,Suite 420, Houston,TX 77024 Office: (713)468-1678 Fax: (832)201-7495 • Page 2 Confidentiality Release Kenai Loop No. 1-4 If you concur,pleasesign below and return a copy of this letter. Should you have any questions or require additional information please contact me at(214)738-6945. Sincerely, /6411744.1 Mark R. Landt Vice President Land&Business Development Cc Ms.Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 ACKNOWLEDGED THIS_It DAY OF September, 2013 MENTAL HEALTH TRUST AUTHORITY Ai( , A — II Its: c v-k. S ACKNOWLEDGED THIS_ DAY OF September, 2013 DEPARTMENT OF NATURAL RESOURCES Its ACKNOWLEDGED THIS_ DAY OF September, 2013 COOK INLET REGION, INC. Its • • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Monday, September 09, 2013 1:33 PM To: 'Stephen Hennigan'; Davies, Stephen F (DOA) Cc: drillsupervisor@buccaneerenergy.com; Pete Berga Subject: RE: Potential Deepening of Buccaneer KL#1-4 PYD 213-091 Steve, You may extend well up to 500ft deeper than permitted per 20 AAC 25.015 (a)(1). (10896ft+500 ft= 11396ft md) Since you are in the vertical section of the wellbore the correlative rights and pending spacing exception will not be impacted any more than they currently are.You are still subject to Commission approval before production or testing can take place in the well. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Stephen Hennigan [mailto:shenniaan(Thpeiincr ] Sent: Monday, September 09, 2013 1:20 PM To: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Cc: ; Pete Berga Subject: Potential Deepening of Buccaneer KL #1-4 PYD 213-091 Gentlemen With regard to our previous correspondence via email, additional information is provided below. Attached is this morning's report where we were drilling @±10567'MD/±10370'TVD with a 9.6 ppg mud weight. We are drilling in the vertical portion of the well. The present proposed TD is 10896'MD/10700'TVD. Buccaneer requests approval to deepen the well to±11396'MD/±11200"TVD. No change in pore pressure is anticipated. (The KL#1-3 [last well drilled] drilled to 12472'TVD with a 10.2 ppg mud (BHP gauges in the well test confirmed normal pressure)). Of note,we have had encouraging show reports since casing was set. We are preparing a 10-403 but would appreciate a verbal on this this afternoon. If there is any additional information you would like, please let me know. / r 1 Project Manager/Engineer PETROLEUM 7 ENGINEERS, INC. A Hare 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 V OF 7`fj4, e evi) I%% s� THE STATE Alaska Gil and Gas °ALASKA 0 ZOkiservatiori Commission itrtilvt" GOVERNOR SEAN PARNELL 333 West Seventh Avenue �Q. Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 E. A. Rike EVP Operations Buccaneer Alaska, LLC 952 Echo Lane, Suite 420 Houston, TX 77024 Re: Wildcat Field, Wildcat Pool, Kenai Loop#1-4 Buccaneer Alaska, LLC Permit No: 213-091 Surface Location: 1765' FNL, 1254' FWL, SEC. 33, 6N, 11W Bottomhole Location: 2450' FNL, 2464' FWL, SEC. 33, 6N, 11W Dear Mr. Rike: Enclosed is the approved application for permit to drill the above referenced exploration well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce / inject is contingent upon issuance of a conservation order approving a spacing exception. Buccaneer Alaska, LLC assumes the liability of any protest to the spacing exception that may occur. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by Buccaneer Alaska, LLC in the attached application, the following well logs are also required for this well: Bas conductor to surface casing shoe: gamma ray log (open-hole or cased-hole). Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. Conditions of approval: 1. 5,000 psi 13 5/8" BOPE to be tested to 5000 psi (annular to 2500 psi ). 2. Casing pressure tests as follows: • 10 3/4" surface casing= 3000 psi (57% of burst) • 7 5/8"casing and 4 1/2" liner=4000 psi (58% of burst). 3. Casing Ram tests as follows: • 7 5/8"casing rams to be tested to 3000 psi. 4. Weekly drilling report to be submitted by email to the AOGCC. 5. Drilling past surface casing shoe not permitted pending AOGCC approval of BOPE equipment. 6. BOPE equipment to be tested on a 7 day cycle (i.e. not to exceed 7 days). 7. Mud logging equipment to be rigged up and operational from the conductor shoe (120' md) to TD. 8. CBL required over 4 '/z" liner and 7 5/8" casing to determine TOC and cement quality. 9. Separate sundry approval required for well completion and testing. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the AOGCC's internal use. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy P. oers er Chair DATED this 1G/day of July, 2013. • • RECERIED STATE OF ALASKA JUN 2 5 2013 ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 la.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ 1c.Specify if well is proposed for: Drill 0 •Lateral ❑ Stratigraphic Test ❑ Development-Gas❑ Service-Supply ❑ Multiple Zone [I] Coalbed Gas❑ Gas Hydrates ❑ Redrill❑ Reentry❑ Exploratory [ Service- WAG ❑ Service-Disp ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket ajni Single W2.1.1___2 11.Well Name and Number: Buccaneer Alaska Opns LLC Bond No.r'' ye, 96 9a-q--- Kenai Loop # 1-4 3.Address: 6. Proposed Depth: . . -/. r'1'13 12.Field/Pool(s): 952 Echo Lane-Suite 420, Houston,TX 77024 MD: 10,897 • TVD: 10,700 4a. Location of Well(Governmental Section): 7. Property Designation(Lease Number): Wildcat 0 Surface: 1765'FNL&1254'FWL Sec 33 6n 11w 4 MHT 9300082 Top of Productive Horizon: 8. Land Use Permit: 13.Approximate Spud Date: 2450'FNL&2464'FWL Sec 33 6n 11w 4 City of Kenai,Conditional Use Permit 15-Jul-13 Total Death: 9.Acres in Property: 14.Distance to Nearest Property: 2450'FNL&2464'FWL Sec 33 6n 11w 4 1267.60 1765 FNL 1254 FWL 4b. Location of WellState Base Plane Coordinates-NAD 27: 10.KB Elev above MSL: ( ) !! 21-5:5- feet 15.Distance to Nearest Well Open Surface: x- 279,736 y 4 � w- 2,402,388 - Zone- GL Elev above MSL: 92 5,>feet to Same Pool: f•13NA „?!j 7• 16. Deviated wells: Kickoff depth: 1000 feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 18.1 degrees Downhole:5475 '- Surface: zi S'35 ,z OW - 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 0 16 0.5 N80HC Welded R3 0 0 120 120 Driven 0 0 0.00 0 0 R3 0 0 0 0 na 13 1/2 10 3/4 45.50 L80 BTC R3 0 0 3,003 3,000 1380sx Lead @ 13.5ppg+-160sx Tail @-- r 9 7/8 7 5/8 29.70 L80 BTC R3 0 0 9,496 9,300 Osx Lead @ Oppg+1180sx Tail @ 15.8p ; 6 3/4 4 1/2 12.60 L80 HYD 563 R3 9,246 9,050 10,897 10,700 Osx Lead @ Oppg+270sx Tail @ 15.8pp 0 0.00 0 0 R3 0 0 0 0 na 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect. Depth TVD(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat 0 BOP Sketch (] Drilling Program ❑ Time v. Depth Plot ❑ Shallow Hazard Analysis Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Stephen Hennigan 337 849-5345 Contact Email shennigan@peiinc.com Printed Name E.A.Rike Title EVP Operations Buccaneer Alaska,LLC Signature f ; ,/42'. Phone (713)468-1678 Date 6/2 j Commission Use Only Permit to Drill Gy API Number: �� /y Permit Approval i See cover letter for other Number: SIS 67/ 50-/33 `L-'" c€ ' - ' 'Date: ��N( V requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales(�, Other: 5 o( L Js� 4Q - Samples req'd: Yes❑ N�7 Mud log req'd:Yefl N /-� H2S measures: Vest: NcJ' Directional svy req'd:Yea NL i GG 7-17:a-^Sc. QM 14 _ I e, /.1 Spacing exception req'd: YesL N� Inclination-only svy req'd:YeL ND' cc ca (App-°"--P 4 ,f / /�(/_ - APPROVED BY 4 _ Approved by: �* /// ,w�/ COMMISSIONER THE COMMISSION Date ( 7� 3 Submit m and +� ForQR ' QJNAL 0 e11 permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Attachments in Duplicate G k • • JUN 25 2013 BuLccANIEER AOGCC CC June 24, 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Error in Application for Permit to Drill for Buccaneer Alaska Operations, LLC Kenai Loop #1-4 Dear Ms. Foerster, Buccaneer Alaska Operations, LLC applied for a Permit to Drill the Kenai Loop #1-4 (an onshore gas exploitation well near Kenai on the Kenai Peninsula). In error, the older 10-401 was included. Please accept our apologies and include the newer form (attached) which supercedes the previously submitted, obsolete form in the permit application. Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission June 19, 2013, Page 2 If you have any questions or require additional information, please contact me or Steve Ward at 713-468-1678 or Stephen Hennigan at 337-849-5345.. BUCCANNEER ALASKA OPERATIONS, LLC i E.A. Rike Executive Vice President of Operations Enclosures Cc: Steve Ward — Buccaneer Alaska Operations, LLC Stephen Hennigan — Petroleum Engineers for Buccaneer Alaska Operations, LLC Buccaneer Alaska Operations,LLC 952 Echo Lane,Suite 420 Houston,TX 77024 713-468-1678 RECEIVED STATE OF ALASKA AL*CA OIL AND GAS CONSERVATION COMMI.N JUN 1 9 2013 PERMIT TO DRILL 20 AAC 25.005 1a.Type of Work: lb.Proposed Well Class: Development-Oil 0 Service- Winj 0 Single Zone 0 1 c.Specify if well is proposed for: Drill O Redrill 0 Stratigraphic Test 0 Development-Gas 0 Service-Supply 0 Multiple Zone O Coalbed Gas 0 Gas Hydrates 0 Re-entry 0 Exploratory(Gas) Q Service- WAG 0 Service-Disp 0 Shale Gas 0 2.Operator Name: 5. Bond: Blanket Q Single Well ❑ 11.Well Name and Number: Buccaneer Alaska Operations,LLC Bond No. 9636963911 Kenai Loop #1-4 3.Address: 6.Proposed Depth: 12.Fiel¢,Pool(s): 952 Echo Lane,Suite 420,Houston,Texas 77024 MD: 10,897 - TVD: 10,700 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Wildcat 0 Surface: 1765'FNL&1254'FWL Kenai Sec 33 6n 11w • 4 MHT 9300082 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 2450'FNL&2464'FWL Kenai Sec 33 6n 11w 4 City of Kenai 15-Jul-12 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 2450'FNL&2464'FWL Kenai Sec 33 6n 11w 4 1267.60 1765 FNL 1254 FEL 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elev above MSL: 11 . feet 15.Distance to Nearest Well Open Surface: x- 279.736 • y 2402,838 • Zone- 4 GL Elev above MSL: •3 feet to Same Pool: na 16.Deviated wells: Kickoff depth: feet 17.Maximum Anticip -.ures in psig(see 20 MC 25.035) Maximum Hole Angle: degrees Downhole: 56 Surface: 4535 ' t n1/t5P 18.Casing Program: Specifications Top - +-. ••rDepth - Bottom Cement ' ,c.f.or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 0 16 0.5 N8OHC Welded R3 0 / 0 120 120 Driven 13 1/2 10 3/4 45.50 L80 BTC R3 0//// 0 3,003 • 3,000 1380sx Lead @ 13.5ppg+160sx Tail@14.8ppg 9 7/8 7 5/8 29.70 L80 BTC R3 ``, 0 9,496 . 9,300 Osx Lead @ Oppg+1180sx Tail @ 15.8ppg 6 3/4 4 1/2 12.60 L80 HYD 563 R3 ! 9, 46 9,050 . 10,897 - 10,700 Osx Lead @ Oppg+2700sx Tail @ 15.8ppg 19. PRESENT WELL CONDITION SUMMARY(To e c let d for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk(measured): Casing Length Size 4/ Cement Volume MD TVD Conductor/Structural L )•, Surface � Intermediate �c ,Q),/ Production .�r Liner ✓ -: Perforation Depth MD(ft): `--)1 Perforation Depth TVD(ft): 20. Attachments: Property Plat Q Sk:ch Q Drilling Program Q Time v.Depth Plot Q Shallow Hazard AnalysiC Dive 'r S etch Q Seabed Report Q Drilling Fluid Program Q 20 MC 25.050 requirement 21. Verbal Approval: Commission Representative: Date 6/19/13 22. I hereby certify that the foregoing is true and correct. Contact Stephen Ward 713 468 1678 Printed Name E.A. :ike Title EVP Operations Buccaneer Alaska,LLC 4 Signature A Phone 713 468 1678 Date Commission Use Only Permit to Drill API Nu• ber: aPermit Approval See cover letter for other Number: 50-��';_l-.67(;- ti--cr.c� � Date: requirements. Conditions of approval: If ox is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained 0 shales: Other: Samples req'd: Yes❑ Nc❑ Mud log reIkt: Ye❑ No H2S measures: Yes❑ Nd] Directional svy re0d: Ye() No r APPROVED BY THE COMMISSION DATE: ,COMMISSIONER ORIGINAL Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate i BUCCANEER A L A S K A June 19 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Permit to Drill: Kenai Loop#1-4 Dear Ms. Foerster, Buccaneer Alaska Operations, LLC hereby applies for a Permit to Drill an onshore gas exploration well near Kenai on the Kenai Peninsula. Buccaneer plans to spud the Kenai Loop #1-4 approximately July 5, 2012. Buccaneer plans to use Buccaneer's Glacier#1 Rig (to drill this well and complete it for testing). If the well test results from the Tyonek formation are sufficiently encouraging, the well will be placed on long-term production. If not, the well will be plugged back to the Beluga formation and be placed in long-term production as a gas producer. Please find attached information as required by 20 AAC 25.005 (a) and (c)for your review. Pertinent information attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill 2) Plats showing the surface location of the well 3) Aerial map 4) Topo map 5) Proposed Kenai Loop#1-4 Wellbore Diagram 6) Plan Plot 7) Drilling Time vs. Depth Plot 8) Program Details 9) Cementing Program Summary 10) Wellhead diagram 11) Diagrams and Descriptions of the BOP Equipment to be used 12) Solids handling diagrams 13) Directional Plans Buccaneer Alaska Operations,LLC 952 Echo Lane,Suite 420 Houston,TX 77024 713-468-1678 • Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission June 18, 2012, Page 2 The following are Buccaneer's designated contacts for reporting responsibilities to the Commission: 1) Completion Report E.A. Rike, Vice President of Operations (20 MC 25.070) 713-468-1678 2) Geologic Data and Logs Allen Huckabay, Vice President Exploration & Development (20 MC 25.071) 713-468-1678 If you have any questions or require additional information, please contact me at or Allen Huckabay at 713-468-1678. BUCCANNEER ALASKA OPERATIONS, LLC t7-71T14, E.A. Rike Executive Vice President of Operations Enclosures Cc: Allen Huckabay—Buccaneer Alaska Operations, LLC Stephen Hennigan— Petroleum Engineers for Buccaneer Alaska Operations, LLC Buccaneer Alaska Operations,LLC 952 Echo Lane,Suite 420 Houston,TX 77024 713-468-1678 • • SEC 29 SEC 28 SEC 28 SEC 32 SEC 33 `- *,ov,\\iyl SEC 33 •.-.OF A(1 I.I 1 Y ,1,P:•' S•.y f tI 11 ilkca.: i ssw ♦♦ II * ' f1 NORTH ♦ •.STAN A. McLANE. .� I 1 I 4637—S tl [> 1}, w r 1 �'� .,.,. . Z 1 rt - 0 or SEC 33 T6N 0 ,1, RI I W SM AK II ,1 � _ 11 II KENAI LOOP 0 NO. 1-4 WELL 11•• AS-STAKED N rr' SURFACE 1 I LOCATION r I I NAD27 ASP ZONE 4 • t1 GRID N:2402387.915 III; I • GRID E:279736.258 • 11 k-' KENAI LOOP �r � 1 1 I • PAD'1 ,13. j1 111 r ri lr 1+ Ir 1 i 2464' x r KENAI LOOP NO.1-4 BOTTOM HOLE a NAD27 ASP ZONE 4 GRID N:2401680 Q GRID E:280935 0 2464'FWL c .Z 2450'FNL O H cr T 1,BASIS OF HORIZONTAL AND VERTICAL s CONTROL WAS DETERMINED BY AN NGS OPUS SOLUTION FROM CORS BASE STATIONS "KEN1 PID AF9548","TSEA PD A10952"AND "ZAN1 PID DE9153" OBSERVED AUGUST 17, 2007 FOR MCI CONTROL STATION KERR: —y It ALASKA STATE PLANE NAD 83 ZONE 4 EPOCH I 2003 DATUM N:2367475.381 E:1409643.183 i ELEV:133.963 GEOID 06 NAVDBB DATUM 2)SECTION LINE OFFSETS DETERMINED FROM DIRECT SURVEY TIES TO THE TO _ EXISTING BLM CORNERS RECOVERED AND ) NOT THE PROTRACTED SECTION CORNER SCALE VALUES. COORDINATES WERE CONVERTED FROM 0 500 1000 NAD83 TO NAD27 UTILIZING CORPSON / I FEET + VERSION 6.0-1. � ' BUCCANEER ALASKA, LLC PROJECT REVISION: I a. 952 ECHO LANE KENAI LOOP NO. 1-4 DATE: 6,7113 SUITE 420 PROPOSED BOTTOM HOLE LOCATION DRAWN SY' MSM ArcAN/pi HOUSTON, TX 77024 DIAGRAM NAD 27 - SCALE I=500 PROJECT NO. 1.33041 \ L�� ENGINEERING!MAPPING I SURVEYING I TESTING 6:JOK NO. - COUL'L..+y Inc P U.BOX e69 SOLUOTNA,AK.94669 LOCATION SEC. 33 T6 N R 11 W vJ AJC VOICE.(8071283.421e FAX:(9071283.1265 SHEET ^F''"�� EMAIL-SAMCLA4E@MCLANECG.COM SEWARD MERIDIAN, ALASKA °' 1 0 • SEC 29 J SEC 28 SEC 28 SEC 32 SEC 33 �.•0\\\11 • � o�A, 'ft art SEC 33 �A..' s1-1i/ �>� 1Y....? i `� ....; NORTH / .- STAN A. McLANE:' I1/ 4637-S "" II II '-•.6/7/13.'' ; "I,'r' 11 Int 1 Z 111 ,�11 WiNN%.* o X11 SEC 33 T6N U ;; R11 W SM AK w 1r U) H fI I1 KENAI LOOP a NO. 1-4 WELL E3 1 P�j AS -STAKED N 111 SURFACE 11 LOCATION 11 I NAD83 ASP ZONE 4 11 GRID N:2402150.248 11i __ GRID E:1419756.422 )'I ` 11 KENAI LOOP 11 1 r ' PAC?`1 t1 i1 II I I "1 _ 2464' x ------------------I 1 KENAI LOOP NO.1-4 BOTTOM HOLE I o NAD83 ASP ZONE 4 I GRID N:2401442.31 GRID E:1420955.30 Ic. 2464'FWL Z 2450'FNL O ce 1.BASIS OF HORIZONTAL AND VERTICAL CONTROL WAS DETERMINED BY AN NGS 1" OPUS SOLUTION FROM CORS BASE STATIONS :/ "KEN1 PID AF9548","TSEA PID A10952"AND t "ZAN1 PID DE9153" OBSERVED AUGUST 17, 2007 FOR MCI CONTROL STATION KERR: ALASKA STATE PLANE NAB 83 ZONE 4 EPOCH I 2003 DATUM N:2367475.381 E: 1409643.183 ELEVATION:133.963 GEOID 06 NAVD88 DATUM 2)SECTION LINE OFFSETS DETERMINED SCALE FROM DIRECT SURVEY TIES TO THE TO o s00 i000 EXISTING BLM CORNERS RECOVERED AND ' rET ' I NOT THE PROTRACTED SECTION CORNER VALUES. FROJE(A REVISION: 1 BUCCANEER ALASKA, LLC KENAI LOOP NO. 1-4 WELL DATE 6+7;,3 lakr952 ECHO LANE SUITE 420 PROPOSED BOTTOM HOLE LOCATION ORAV"e" MSH � CcA`kil, HOUSTON, TX 77024 SCALE ,.='1c � DIAGRAM NAD 83 PROJECT No. 133041 4 ENGINEERING l MAPPING I SURVEYING I TESTING BOOK NO. - \---)Gon3uL51p 10C P.O-BOX 468 SOLDOTNA,AK.99869 LOCATION VOICE:(947)2834218 FAX.1907)283-3265 SEC. 33 TeN R11W SHEET E MAIL•SA81C ANEUeIOIANECG COM SEWARD MERIDIAN,ALASKA 1 O' 1 0 0 S 29 S 28 :t I ' SEC 28 1/4 S 32 S 33 SECTION LINE NOT TO SCALE --SEC 33 C.,) I I `��\\\\k1I1 I '**.S OF A(,.it t p.:_ ---IN II ' Ir 1. ... % NORTH I� '.STAN A. UeLANE i r ' I � . 4637-S -` r -....16;I / .5/31 13.•'' _ ` Z I-- PWELL AS-STAKEDSURFACE+, �' w 11,\,\�� O I I NAD27 ASP ZONE 4 W U GRID N:2402387.915 ' Q uif GRID E:279736.258 ' c O > 0 'U LATITUDE:60°34'12.708"N z Q !� CITY OF KENAI LONGITUDE:151°13'27.893"W I— I Z m JJI y 0 UNSUBDIVIDED 1254'FWL >z • �N PORTION OF 1765'FNL g w O w I 1 I SEC 33 T6N R11W SECTION 33 TO6N RI 1 W SM AK m 2 ' ELEV.92,5'NAV088 w v wapa �� { ¢z E- cn�O I `)q. { LUQ 24'I^/IDE ACCESS PDAD'. )AS-trAKED .) y F- -7".--- ___. ' ,, _._0.,�� KLn0.,1: AS uj w AS u 1 Pi IA FWL� I I 1,�p I , � N LOW 1 - t`� AS BUILT AS BUILT KS BUILT N BUCCANEER , ttt 1 'I KENAI LOOP PAD t\., , I KL NO.1 NO.t 18.4 I I �`} �=2 ffAT RM Iii ' 0 �.... am, 1 RI I _i 0 II �o + � f I CITY OF KENAI 1 f BARON PARK SUBD. I 2012 ADON. KN 2012.89 _l i I I 1.BASIS OF HORIZONTAL AND VERTICAL 1 CONTROL WAS DETERMINED BY AN NGS ( I OPUS SOLUTION FROM CORS BASE STATIONS "KEN1 PID AF9548","TSEA PID A10952"AND "ZAN1 PID DE9153" OBSERVED AUGUST 17, 2007 FOR MCI CONTROL STATION KERR: i ALASKA STATE PLANE NAD 83 ZONE 4 EPOCH I i' 2003 DATUM N:2367475.381 E:1409643.183 ELEV:133.963 GEOID 06 NAVD88 DATUM ✓ I I ' 2)SECTION LINE OFFSETS DETERMINED ( FROM DIRECT SURVEY TIES TO THE TO O W EXISTING BLM CORNERS RECOVERED AND Q-1 NOT THE PROTRACTED SECTION CORNER cnct VALUES. ZU COORDINATES WERE CONVERTED FROM f SCALE m NAD83 TO NAD27 UTILIZING CORPSON rl i ` 2Ln I 400 Q VERSION 6.0.1. FEET O 1 SEC 33 T6N R11W 1 BUCCANEER ALASKA, LLC PROJECT REVISION, - 952 ECHO LANE °ATE: 5r313 SUITE 420 KENAI LOOP NO. 1-4 WELL AS-STAKED DRAWN BY: MSM HOUSTON, TX 77024 SURFACE LOCATION DIAGRAM NAD 27 SCALE: 1'4200' BL ANI:Clt PROJECT NO. 133041 ENGINEERING f MAPPINGI SURVEYING I TESTING , BOOK NO. - Calt+�L s9ICc P.°.BOX 455 SOL D°TNA.AK.99565 LOCATION SEC. ,' T6N R11A1 SHEET iiiix VOICE:1907)2834218 FAX(907)283-3255 EMAIL SA "NEa CL`ANEGG.G°„ SEWARD MERIDIAN, ALASKA 1°' 1 4111°— 0 s2sj sea 1 / _ — - *i'� _ SEC 28 1l4 S32S33 SECTION LINE NOT TO SCALE 1 4 OF ASA Ili SEC 33 It— I — co.= y �j I ..... ..... ....,, 4- _--N � i 0` STAN A. MCLANE NORTH I. 4637-S — +" I I` - .•-.S/31/1.k•••. .:' in {�C.r IJ f rel I11"` ``�., CO w KENAI LOOP NO.1-4 WELL AS-STAKED SURFACE LOCATION U 'I NAD83 ASP ZONE 4 w I GRID N:2402150248 OF } a4 ix 1 GRID E:1419756.422 c O > S O LATITUDE:60°34'10.656"N -7 LONGITUDE: 151'13'35.921"W r Z cc 4 O� �j CITY OF KENAI p Z m •• 0 UNSUBDIVIDED 1254'FWL >' Z w I J I` PORTION OF 1765'FNL q w Z < I I SEC 33 T6N R11W SECTION 33 TO6N R11W SM AK m? I I= ELEV.92.5'NAVD88 w c SIFS I I i O " 1 w6 v 2t'E710E ACCE ROAU`� � - -.. KL.STAKED NOL f4 .. / O V (i °dw CV M ' 1254, ;: O UIU FWL 1 r' �d: . caw or9 , J. AS BUILT AS BUILT,AS BUILT b BUCCANEER r, ,� I I `y WELL "H'ELr-' WELL KENAI LOOP PAD I ' KL NO 1:'KL N0.2 KL4 »»»x I I 1 d, •0 I�A7P<n RARE Ilk \ 6010' 130.6'—y !'` ).\ iI ',r�' 0�O 1 IP/ 1 '° _ `K 1 �o� Y'' CITY OF KENAI �� l BARON PARK SUED. I � 2012 ADDN. KN 2012.89 II ISI i I 1.BASIS OF HORIZONTAL AND VERTICAL ill 1 CONTROL WAS DETERMINED BY AN NGS II OPUS SOLUTION FROM CORS BASE STATIONS I "KEN1 PIO AF9548","TSEA PID AI0952"AND ' "ZAN1 PID DE9153" OBSERVED AUGUST 17, 1 \ 2007 FOR MCI CONTROL STATION KERR: It ALASKA STATE PLANE NAD 83 ZONE 4 EPOCH I I I -1 I 2003 DATUM N:2367475.381 I w E:1409643.183 I O1 ELEVATION:133.963 GEOID 06 NAVD88 DATUM I 2)SECTION LINE OFFSETS DETERMINED cal)ce 1 FROM DIRECT SURVEY TIES TO THE TO • WZ U EXISTING BLM CORNERS RECOVERED AND I NOT THE PROTRACTED SECTION CORNER I co 1 VALUES. CII SCALE 1 1 0 200 400 I 1 I I FEET PROJECT REVISION: . BUCCANEER ALASKA, LLC DATE: won) iiiii.„ 952 ECHO LANE SUITE 420 KENAI LOOP NO. 1-4 WELL AS-STAKED DRAWN BY: AIM evc�ticF� HOUSTON,TX 77024 SURFACE LOCATION DIAGRAM NAD 83 SCALE: 1=200' PROJECT NO 133641 ENGNEERING I MAPPING I SURVEYING VESTING BOOK NO. censiXorpInc P,O-BO%46856LOOTNA,AK.98889 LOCATION SEC. 33 T6N R11W SHEET ill��Ir VOICE:190712834216 FAX:190712SY326S ____ EMAIL:SAMCLA"E98MCL,NECG.COM SEWARD MERIDIAN,ALASKA 1°' 1 ! ! N. I' oa -:.. . 41 —' *C . °• yJ' r esa y :-..„.:7:t.:-`40,.4.,-r [ (`+.F �1Yt5 . hfi � � " .: :.r.s is 1 4Mill,„ 1 1 .4., . 1,.. � w 4 y i t '',,,t-"V r e .. r a ate ", . 1 s +1 off-1 ♦. rr .,,,..._-:„.. :: . i,,,,-,,, .� , Figure 2: Aerial Location Map for Kenai Loop Pad •uccaneer Alaska Opns LLC Kenai Loop # 1-4 Block/Sec 33 6n 11w Wildcat 0 Kenai Peninsula 0 Alaska Ser#.: 7???? Saturda , January 00, 1900 4x ISDN'.' Est Rk6 1/: Air Gap 15 Wtr.Dpth 8.-1 8.6 9.8 105'pen 120' :2 t.J#NSOHC Welded Drive Sz o> 16 " ROP/Gas log Cond,Drire to TO. Mud Logging - 17 5"Plot Target PIT-11.11 ppge Open hole to 0 " ii I; is 6 .r 8-h14.5 Mod logging 3003' t' • I45.5#L80 RTC 13 112" 3000' 10 3/4" Target PIT 11.8 ppge 3000' Casing 1 3110' Top Stetting 3610' Top Beluga 8300' Casing 2 f� 1 5 oJ 8430' Top Tyonek '1°(- 9968' KL4l9700'sd 10321' KL el 10000'sd 11500' Ti) Mud Logging: Marred: 2 sx every 10',0'to Ti) Est TOC 14.5 Hud togging ' 9496' ! -¢} [¢2 29.70 L80 117'C 9 718" 9300' ` } [ 1111111 7 5/8" Tut{ei P17-- 13.Opp'e a¢} r¢} t } [ [` ?'1_ 16.5 Mudt.ogpti 10897' - 1 [' 1^.6-:Leo/IV an6 3/4" 10700' 4 1/2" • 0 0 co 8 1 , i I I 1 1 04 I V.. I-a—I— t's III : .r... 0 Zii"... 4• ea 0 ... I,1.111 , .ct .. ..a.-. CO I I ? 1 (7.0- C' b..- r. () . Ili II mi. I : ' 4...... .1 . el .. ' ; C a , 0 Lt...t A :1 ...-..A..- L._ _ -. Ja —7—. ,-- ' ' ,i , , •••• •110..1. 4117 '''' I ! : _joe 4i0011.1 I . ._100101 -4 1 I i I li 1 tri 11_.. ----.. ...... 'Th - a , --t— , 1 1 .ri 5;‘, '''. j 'I 1 E ''') 1 , C., i --4--- ,... fL) 1 0 IE 1 ,, . 1 , ,...., L- i. i ! I I , [ 1 _ C.) CNI I i L I 0 0 ! t1 1 0 03 -..I , 1 ________ • 4__ '. cc° 0 - -4--- 1 i ....... „. -I-- -i- i I032 1 .iili 1 7- i c) manit.,.. ___ : i (o W C , . , CO , 1( e I 111 i--. .. , 1 • 4 E- ,444914--444640,Malti4,4411ff 4,.. 14rom a 4 .. ed, ..A* 0,44444y#411111-to ,. vs, . i . 1 " . 1 : ci) 0 < , _ 0 i f 1 _ i I 7-1--- 0 i 1 1 1 1 , f• 1 4 i if E • 1 __1_ _.....i_ ......i, 1 , ! 1 1 1 I 1 • I I .1--. 1 1 ! i -1 • .t... I (XI i CI (./ '0 1 i i 7,2- .I. .._ MIN cv , Ot- _i. t ÷ 0 i''' .2, a I tn ' z 001 III e: I w.... 8 , - 1 ' ..,,_ . ___ , ... 1 , - • . . I' ------f 1 1411 4,4 i i- —ill ----H. i c 0 0 0 0 0 0 CD 0 0 CD CD 0 CI 8 8 8 0 0 0 0 0 0 0 0 0 0 0 ,,- CV Cr) •4r in 4imi r- co 0 0 •„-- — V.- CNJ v- V tildea • Buccaneer Alaska Opns LLC 0 Kenai Loop # 1-4 Block/Sec 33 6n 11w Wildcat () Kenai Peninsula 0 Alaska Ser#.:????? USDW:' a Sand Tops/Significant Markers Objectives Type TVD EMW COMMENTS Casing 1 3000 • 8.3 `I .. w/. Top Sterling 3110 8.3 f/s'r r 4 /tel Top Beluga 5610 8.6 �ti✓t t/V Casing 2 8300 9 ` ll Top Tyonek 8430 9 fj7 13 KL#1 9700'sd 9968 10.2.. �% 1 ✓l KL.#110000'sd 10321 10.3 �, (( "11 V TU /7 � 11500 10.4 Directional Program: Directional Per program TVD VS Opn(s) 0 0 0 Lithology Samples: 1000 0 Nudge 2 sx every 10',0'to TD 3000 76 Casing 1 3997 76 121.37'AZ @ Directional Survey: 4709 189 EOB,Hold Per regulatory and directional requirements. 6155 0 Top Beluga 7813 1182 EOH,drop 0 0 Top Tyonek 9000 1392 OD,VERTICA 9300 1392 Intro Casing 9968 1392 KL#1 9700' sd 10321 1392 KL#1 10000' Logging Program: sd Mud Logging MWD/motor Surface Mud Lo inLvvu(motohhr-(survey,iiamma,res,sonic,density/neutron), Intro Mud Logging Lvvu(Motor-suurvey,vamma,res.sonic.oensitymeutmn), 9g 9 OH Quad combo.Doss coresrit.nmr Prod Hole Mud Logging LWD(gr/res),Quad combo.poss cores,rft,nmr.VSP 0 Mud Logging: Unmanned: ROP/Gas log Cond/Drive to TD. 0 • Buccaneer Alaska Opns LLC 0 Kenai Loop # 1-4 Block/Sec 33 6n 11w Wildcat (( Manned: 2 sx every 10',0'to TD • Buccaneer Alaska Opns LLC 0 Kenai Loop # 1-4 Block/Sec 33 6n 11w Wildcat () Mud Program: Interval(TVD) Mud Weight(ppg) From To From To Mud Type 0 8.8 3000 8.8 spud 3.000 9300 8.8 9.3 • wbm Casing Program: Measured Depth Connection CMTD Est No. Hole Size Casing Size From To WI(Mb/ft) Grade Type with TOC Centralizers Drivel Structural Driven 16 0 120 0.50 N8OHC Welded none NA none NO Conductor 0 10 Surface 13.5 10.75 0 .3003 45.50 L80 BTC 1220 0 16 intm 9.875 7.625 0 • 9496 29.70 L80 BTC 1180 5.000 58 General Drilling Prognosis: 1 Prep location MIRU Conform to ALL regulations Drive conductor etc Perform spud mtg 2 PU a pendulum assy. Clean out drive/conductor Drill slowly until stabilizers exited 3 !nor RPM and flow rate Be prepared for losses 4 Drill to surface casing point Condition hole Log 5 Run surf csg and cmt 6 NU BOPe Test Drill out 20'&pelf LOT Anticipate 16.5 ppge Install mud loggers ' 7 Drill ahead At sand±300'below casing perform open hole LOT 8 Drill ahead Break mud over and reduce fluid loss and treat w/LCM 9 Correlate logs and monitor drill breaks-possible lost rins zones-Treat w/lcm 10 Monitor surge&swabs Set down slowly on slips Kick pumps on slowly 11 Minimize ECD (Pump wtd&LCM sweeps prior to each trip Stage in hole carefully after each trip.) 12 Drill to intm casing depth. Condition hole. Evaluate 13 Condition hole Run&cmt long string(put DV tool±500'below surface casing shoe displace with mud above) 14 WOC NU,test bope&casing. Cleanout and test Drill shoe track+20'of new formation Perform LOT 15 Follow mw program Circ out gas Monitor for markers 16 CONTINUE TO minimize ECD and utilize sweep program for losses and hole cleaning 17 Continue LCM/hydraulics program 18 Drilll ahead to total depth circulating out gas and monitoring for markers 19 Monitor surge&swabs Set down slowly on slips Kick pumps on slowly 20 Condition hole. 21 Evaluate 22 23 See note»»»»»»»»»»>»»»»»»»»»»»»»» 24 25 i Buccaneer Alaska Opns LLC 0 Kenai Loop # 1-4 BlocklSec 33 6n 11w Wildcat 0 26 Run Production Inner Cement Bump plug with water Cleanout to top of Inner 27 Displace with water POOH laying down DP 28 Complete • • 1 Emergency response Information 1.1 Directions to Location Method Directions Air Latitude: 60.3412708 Longitude: 151.1327893 NAD 27 Proceed northward from WaLMART ON Marathon Road approximately 1/2 mile. Location access is on right. Check in Ground with security. 1.2 Rig Contact Numbers(Tentative depending on rig and communications available at time of MIRU)) Rig Phone List Cell#'s Co.Man: See below Tool Pusher: Mud Erigr: Directional Expediter: Rig Fax: CM Backup:See below TP Backup: 1.3 Emergency Response Contact Numbers Company Contact Numbers Position Office Cell Co Man Pete Berga Superintendent (573)201-3861 Stephen Hennigan Proj Mgr/Engr (337)849-5345 Andy Rike Vice President Opns (713)468-1678 (713)703-5157 Randy Johnson Logistics (907)335-0600 (907)598-5490 Response Service Location Contact Phone Kenai/Soldotna,AK State Trooper 911 Aerial Ambulance/Life Med Kenai/Soldotna,AK Trooper Dispatch (907)262-4453 Nikiski,AK Nikiski Fire Station 2 (907)776-6402 Fire Nikiski,AK (Nikiski Fire Station 2 (907)283-4388 Hospital Kenai/Soldotna,AK 'Central Peninsula General Hospital I (907)714-4404 Police(Local) Kenai, AK Kenai (907)283-7879 Soldotna,AK Soldotna (907)262-4455 Alaska State Troopers Soldotna,AK 'Alaska State (907)283-4388 Alaska State Spill Reporting 1-800-478-9300 (907)269-3063 Alaska National Response Center (800)424-8802 Spill&Contamination Coast Guard (800)479-5555 CISPRI (907)776-5129 AOGCC (907)793-1236 (907)279-1433 Spill&Contamination Mgmnt Slidell,LA Witt/O'Brien's Resource Management 24-hour emergency (985)781-0804 Operations Houston,TX Wild Well (281)784-4700 1.4 Company Emergency Response Name Position Mee Mobile Andy Rike Vice President Opns (713)4681678 (713)703-5157 Pete Bergs Superintendent (573)201-3861 Terry Sims HSE Manager (713)4681678 (281)844-2019 Steve Hennigan Project Mgr/Engr (337)849-5345 Prepared by Stephen F.Henniganq 6/19/2013 Page 1 • • 2 Regulatory Agency Contacts by phone or email Agency Office M-F(8AM-5PM) Contact 24 hr AOGCC (907)793-1236 Inspection Supervisor(Jim Regg) See Industry Guidance 10-01 //tio..eld�s Epvlog,/to rms/T esttnessNotif.tit r, AOGCC.lnspec(orsPalaska.Rov See drilling prog for additional Information 3 Regulatory Compliance Regulation 20 AAC 25 BOP testing every 7 days 24hr notice required 4 Drilling Program Summary 4.1 General Well data Name Kenai Loop R 1-4 Lease/sir ADL- SuAace Lcn 1765 FNL&1254'rWL Sec 33 6n 11w SIVPad Exstg pad 1 Fres Wildcat q Spud Date(est) 07/15/13 K8(above MSL) Couny/Prov Kenai API No. GL(above MSL) State AK Permit No. Perm Datum • KB Total MO 10,997 Well class Exploratory 1A02onee) WD ,rw�.✓na Total TVD 10,700 Mfg Contractor Kenai Drilling LISDW E i/ t1,l unknown Rig Name Glacier Rig 1 VVV15 Rig Type: Land 4.2 Working Interest Owners ! .•2-z to Company Working interest Address Primary Phone Fax Buccaneer Operator Alaska Opns 10000`,' 952 Echo Lane-Suite 420, Houston,TX 77024 (713)468-1678 LLC 4.3 Geologic Program Summary NAD 27 NAD 83 •X11:.1= II.'. r-1•441..... a (:�:1 •.. •i.. ..... i s 41'1 I 7..1.1111--a 7c.IF 'pl'n 1;.71'.4'N ..5- at ^z 1.,.,.l tl r'•1 tt:..t,t.t.4•5'.nn 'a +:"1),:ry 3}' "Ilk!"t"514an. I _.•r rU:v:S':F cCi: 'tel L '. Prepared by Stephen F.Henniganq 6/19/2013 Page 2 • • NAD 27;Alaska Zone 4 X Coord, V Co-ord. Surface Location Co-ordinates 279,736 2,402,388 Bottom Hole Location co-ordinates 280,935 2,401,680 Pore Pressure Targets M.D.(ft) T.V.D.(ft) x Co-ord. Y Co-ord. (PPG)est Est.RTE:113.3' 0 0 2402388 279736 8.4 Tie On 21 21 2402388 279736 8,3 Begin D'r1 Nudge 1000 1000 2402388 279736 8.4 End Build 1500 1499 2402388 279758 8.4 Begin Drop 2000 1997 2402387 279802 8.6 End D'nl Nudge 2500 2497 2402386 279823 8.6 KOP 4000 3997 2402386 279823 9.0 End of Build 4724 4709 2402325 279919 9.0 Top of Beluga 5672 5610 2402168 280188 8.6 Begin Angie Drop 7990 7813 2401781 280775 8.6 End of Drop 9197 9000 2401680 280935 10.0 Primary Tgt Rvsd:17-Jun-13 10165 9968 2401680 280935 10.0 10,0 TD 10897 10700 2401680 280935 0.0 0.0 0.0 4,4 Formation Evaluation Summary Final Hole OH-WI Other OH- Size MD TVD (Possible) WL(TBD) LWD Mud Logging Cased Hole 13 112" 3003' 3000' GR,svys Full service Normal Cbl SW cores*, Resistivity, GR,Res,SP, NMR,Di- Gamma Ray,Di- g 718" 9496' 9300' dipole sonic, Electric and Pole Sonic,and density/neutron, FMI,Form Density/Neutron, microlog test" says Full service Normal Cbl SW cores', Resistivity, GR,Res,SP, NMR,Di- Gamma Ray,Di- 6 314" 10897' 10700' dipole sonic, Electric end Pole Sonic,and density/neutron, FMI,Form Density/Neutron, microlog lest" svgs Full service Hi Res CBL •large rotary sidewall core up to 10 in gas '1"-"2"L e---i--Crill • G/` l Prepared by Stephen F.Henniganq 6/27/2013 Page 1 • • NAD 27;Alaska Zone 4 X Co-ord. Y Co-ord. Surface Location Co-ordinates 279,736 2,402,388 Bottom Hole Location co-ordinales 280,935 2,401,680 Pore Pressure Targets M.D.(ft) T.V.D.(ft) X Co-ord. Y Co-ord. (PP9)est Est.RTE:113 3' 0 0 2402388 279736 8.4 Tie On 21 21 2402388 279736 8.3 Begin 13'14 Nudge 1000 1000 2402388 279736 84 End Build 15013 1499 2402388 279758 84 Begin Drop 2000 1997 2402387 279802 8 6 End 0'14 Nudge 2500 2497 2402386 279823 8.6 KOP i-. 4000 3997 2402386 27982 9.0 End of Build 4724 4709 2402325 27, 19 9.0 Top of Beluga 5672 5610 2402168 :0188 8.6 Begin Angle Drop 7990 7813 2401781 280775 8.8 End of Drop 9197 9000 2401680 280935 10.3 Primary Tgt Rosd 17-Jun-13 10165 9968 2401680 280935 10 4 / 0.0 TD • 10897 ✓ 10700 2401 r 280935 0.0 0.0 0.0 4,4 Formation Evaluation Summary Final Hole OH-WL Other O - Size MD ND (Possible) WL( i DY19 LWO Mud Logging Cased Hole Pilot Hole Normal Cb! 17 1/2" 26' 950' 850' 4,' GR, (possible Res,sonic,svys Full service neutron) / Normal Cbl 17 112" 2723' 2500' GR, (possible 9 Res,sonic.svys Full service neutron) SW cores'. Resistivity, GR,Ras,SP, NMR,Di- Gamma Ray,DS 12 1(4" 7950' '8800' dipole sonic, Electric and Pole Sonic,and ,n density/neutron, FMI,Form DensitytNeutron,s microlog test' vys Full service H,Res CB._ SW• M cores•. Resistivity. 1 GR,Res,5P, NMR, Gamma Ray,D- b 1/2" 1 1800' dipole sonic, Electric and Pole Sonic,and density/neutron. FMI,Form Density/Neutrons microlog test` vys Full service CHH,Res GEL - / SW core , l•s' GR,Res,SP, NMR,Do- Resistivity. 6 " 13647' 12500' dipole sonic, Electric and Gamma Ray.and Full service 1.11 Res CP.i. density/neutron, FM;,Form DensitytNeutron,s micriog test*" vys 111 •large rotary sidewall core ..up to 10 in gas,20 in oil e Prepared by Stephen F.Henniganq 6/19/2013 Page 3 • M 4.5 Summary of Potential Drilling Hazards Hazard Event /intervalthDiscussion Precautions Wildcat Well ALL Monitor all paramters for exploratory well Balling Surface Maintain high gpmtrpm to keep bit/BHA clean Perform aditional circulating times Boulders/rocks/sand Surface Control penetration,add Icm.high vis sweeps Monitor for loss of rtns Possible depleted zones tntm Wells off of same pad had no issues. Monitor for loss of rtns and differential sticking High drill gas Prod Welts off of same pad had no issues Monitor for connections In hole.Circulate hole clean to clear gas before proceeding. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake,driller or relief driller is responsible for shutting the well in BOPE or diverter as applicable as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This weirs primary objective is all hydrocarbon bearing zones. No H2S is anticipated Gas is anticipated in the shallower intervals. Oil sands MAY be encountered in the deeper section of the well. These sands will run from slightly depleted to normal pressure. The drilling mud system will be properly weighted to control control the pressure of all sands and lost circulation materials will be available on location if required. Prepared by Stephen F.Henniganq 6/19/2013 Page 4 O 4.6 Drilling Program Summary 4.6 General Summary Well Name Kenai Loop # 1-4 Permit to Drill No. ????? Location Surface: 1765'FNL&1254'FWL Sec 33 6n 11w • Top of Productive Horizon:2450'FNL&2464'FWL Sec 33 6n 11w Bottom Hole: 2450'FNL&2464'FWL Sec 33 6n 11w Planned TD MD: 10,897 TVD: 10,700 Directional Plan As per program Well Summary A 16"conductor will be driven to t120'and a cellar will be constructed and installed. Using water-based mud,approximately 3000'MD of 13.W'hole will be drilled as a "nudged"directional hole to the first casing point at 3000'TVD where 10-Y,"surface casing will be set and cemented to surface. Then a 9.7/8"hole will be drilled to the Intermediate casing point of 9496'19300'MD/TVD,where 7-5/8"casing will be run and cemented back to+-5000'TVD. Finally,6.14"hole will be drifted to a planned TD of+. 10896710700'MD/TVD where 4—h"production casing will be set and cemented, ft electric logs indicate zones that are encouraging,the well will be tested and then suspended. The lower portion of the intermediate hole and the entire production hole will be drilled in the Tyonek Formation,which contain coal beds of varying thickness.The well will be drilled using PDC bits.These bits exhibit a reverse drilling break upon encountering coals,allowing time for these bits to work the coals as they distress and swell. Based upon the KL#1,gas cut mud may occur. Therefore there will be close monitoring and more circulation of mud to insure proper conditions for progressing. Based on near offset well information,there are no shallow gas or H2S risks anticipated for this well. With gages,KL#1 well test indicated 10,0 ppg emw pore pressures across the target zones and KL#4(KL#1.3)indicated c 9.0 ppg EMW. KEY DEPTHS Start Depth Seat Depth Interval Hole Size MD TVD MO TVD Drivel Structural Driven 0 0 120 120 NO conductor Surface 13 112" 0 0 3003 3000 - Intm 9 7/8" 0 0 9496 9300 • Prod Hole 6 314" 9246 9050 10897 10700 Pore Pressure! Mud Program V The well will be drilled to TD using water-base mud with a weight of 9.3 to 10.6 ppg in the production hole section and adjusted as necessary while drilling to TO. Mud Logging Gas monitoring will be provided in the conductor/surface holes. Basic mud logging services will be provided from SPUD to TD. Services will consist of cuttings description and construction of a lithology log.The mud loggers will tie their well monitoring system into a PVT system to help monitor fluid levels and system gains!losses. Logging Program Electric logging(either LWD or/and open hole)will be performed at each casing depth(except surface). At TD,if hydrocarbons are indicated to be potentially economic, then the testing phase will begin. BOP Testing BOP testing will be conducted at least every seven days and every casing run. AOGCC Field Inspectors will be notified 24 hours in advance of spud and all diverter!BOP Tests. It will be noted on drilling report and on!ADC sheet whether the test was witnessed by the AOGCC Inspector or waived. Waste Disposal All solid waste,including drill cuttings,will be disposed of per regulatory. Excess mud and fluids will be disposed of as permitted. Completion/Well Testing After the production casing/liner is run,it will be cleaned out and tested.A completion/test string and packer will be run. Each potential zone will be period,tested,and then isolated. Following the tests,zones will be identified for potential development. Prepared by Stephen F.Henniganq 6/19/2013 Page 5 4111 4.7 Casing program Summary Start Depth Seat Depth Seat Depth Casing Interval Hole Size MD WO MD TVD Size Wt llb/tty Grade Conn Buret Collapse Tension Wive/ Driven 0 0 120 120 16 " 0.5 N8OHC Welded N/A N/A Mrueiurel NO Conductor Surface 13 1/2" 0 0 3003 3000 10 3/4" 45.5 1.80 BTC 5210 2478 1040 Intro 9 7/8" 0 0 9498 9300 75/8" 29.7 L80 BTC 6890 4790 683 Prod Hole 6 3/4" 9246 9050 10087 10700 4 112" 12.6 1.80 HYD 563 8430 7500 288 Buck on float equipment fg yard MU casing to optimum torque Use Solid body slip on centralizers on liner. 4.8 Calculation of Maximum Anticipate Pressures(MASP and MADP) Note: In this program.MASP for each hole section is defined as the pore pressure(in psi)at the next casing point(or Ti))less a gas column to surface. The MADP is defined as the maximum pp WITHOUT a gas gradient Gas gradient is assumed to be 0.1 psi/ft. • 13 1/2" Hole Section-estimated pore pressure of 8.4 ppg emw This hole section will be drilled to depth with a diverter only(no BOP's)and 3 8.7-9.1 ppg mw.. While MASP will equal the formation pore pressure at the next shoe,less a gas gradient to surface,ii cannot be shut In,only diverted. MAWP is the MUD WEIGHT anticipated without the gas gradient. Calculations: MASP(pp)=((PP ppge)x.052 x TVD)-(gg x TVD) MASP= 3000'TVD x((8.4 ppge".052)-0.1 psi/t) 1010 psi MADP=((PP ppg)x.052 x TVD) MADP= 3000'TVD x(8.8 ppg"0.052) 1373 psi / 9 7/8" Hole Section-estimated MAXIMUM poressure d 8.6 ppg emw This hole section wilt be drilled to t8300'TVD with BOP's and related equipment installed and tested and with a 8.9-9.4 ppg mud weight. Based on available offset information the most likely maximum pore pressure Is anticipated to be 8.6 ppg EMW. Calculations: MASP(pp)=((PP ppge)x.052 x TVD)-(gg x TVD) MASP= 9300'TVD x((8.6 ppge".052)-0.1 psil(t) 3229 psi MADP=((PP ppge)x.052 x NO) IADP= 9300'TVD x(9.3 ppg`0_052) 4497 psi 6 3/4" Hole Section-estimated pore pressure of 9 ppg mew fhis hole section wilI be dirtied to 10700 TVD with(HOP's sod related equipment installed and tested and with a 10.2-10.6 ppg mud weight at TO Based on available offset information maximum pore pressure would be±10 0 ppg EMW particularly based on the information from the Kt 1.3(formerly the Kt.84 i Calculations: Mi�Sr MASP(pp)_((PP ppge)x.052 x ND)-(gg x TVD) J MASP= 10700'ND x((9 ppge`.052)-0.1 psi/ft) /` psi 0 70v l/02)t DSL MADP=((PP ppge)x.052 x TVD) MADP= 10700'TVD x(10.2 ppg".052) 5675 psi Prepared by Stephen F.Henniganq 6/19/2013 Page 6 • Prepared by Stephen F.hlenniganq 6/19/2013 Page 7 i • 4.9 Casing Design and Calculations Note: In this program,MASP for each hole section is defined as the pore pressure(in psi)at the next casing point(or TD)less a gas column to surface. Gas gradient is assumed to be 0.1 psi/ft. MADP is defined as the maximum pore pressure in the hole section. Final Start Depth Seat Depth Casing • hnervat Hof,Size MD TVD MD TW sue Wt({belt) Grade Conn Burst Collapse Tens.on Drivel Driven 0 0 120 120 16 " 0.5 NBOHC Welded NIA N/A Structural NO Conductor Surface 13 112" 0 0 3003 3000 10 3!4" 45.5 L80 BTC 1 5210 2478 1040 I Nan 9 UV 0 0 9496 9300 7 5/8" 24.7 L80 BTC 6890 4790 683 Prod Hole 63x4" 9246 sent 10897 10700 41/2" 12.6 L80 HYD 563 8430 7500 288 =minimum of body and connection strengths RECOMMENDED Casing Design Factors BURST(from internal pressure) 1.1 COLLAPSE(from external pressure) 1 TENSILE(joint body and connection)strength 1.8 BURST REQUIREMENTS 10 3/4" Surface 9 7/8" Hole Section-estimated pore pressure of 8.6 ppg error+ This hole section will be dolled to± 9300'TVD with BOP's installed/tested with a maximum mud wt of± 9.3 ppg from above MASP(pp)_((PP ppge)x.052 x TVD)-(gg x TVD) MASP= 9300'TVD x((8.6 ppge'.052)-0.1 psi/H) 3229 psi • MADP=((PP ppge)x.052 x TVD) MADP= 9300'TVD x(9.3 ppg'0.052) 4497 psi • MASP(fg)_((FG+SF ppg)x.052 x TVD)-(gg x TVD) MASP Csg Design= 3000'TVD x((14.5ppge+.5 ppge)-0.1 psitft) 2040 psi • Burst Stress= MASP Csg Design is used since in case of a kick in excess of 2040 psi,shoe would break down. Design Factor Burst Strength!Burst Stress= 5210/2040 2.55 SF Prepared by Stephen F.Henniganq 6/19/2013 Page 8 I 7 518" Intm 6 3/4" Note Section-estimated pore pressure of 9 ppg emw This hole section will be drilled to 10700'TVD with BOP's installedflested with a maximum mud wt of 10.2 ppg from above MASP(pp)_((PP ppje)x.052 x TVD)-(gg x TVD) MASP= 10700'TVD x((9 ppge•.052)-0.1 psi/ft) 3938 psi MADP=((PP ppge)x.052 x TVD) MADP= 10700'TVD x(10.2 ppg'.052) 5675 psi Burst Stress= MASP Csg Design= BD MASP is used since this will be a production string 3938 from below Design Factor Burst Strength/Burst Stress= 6890/3937.6 1.75 SF Prepared by Stephen F.Henniganq 6/19/2013 Page 9 • S COLLAPSE REQUIREMENTS Use an external pressure that the casing could possibly be put under. One design methodology uses pore pressure at the casing shoe with a gas gradient internally. 10 3/4" Surface External Pore Pressure less gas gradient MASP(pp)_((PP ppge)x 052 x TVD)-(gg x TVD) MASP= 3000'TVD x((8.4 ppge.052)-0.1 psilft) 1010.4 psi Design Factor Collapse Rating/Collapse stress= 2478/1010.4 2.45 SF 7 5/8" Inter External Pore Pressure less gas gradient MASP(pp)=((PP ppge)a.052 x TVD)-(gg x TVD) MASP= 9307 TVD x((8.6 ppge-.052)•0.1 psi/t) 3229 psi Design Factor Collapse Rating/Collapse stress= 47901 3228.96 1.48 SF 4 1)2" Prod Hole External Pore Pressure less gas gradient MASP(pp)=((PP ppge)x 052 a TVD)-(gg x TVD) MASP= 10700 TVD x((9 ppge.052)-0.1 psi/n) 3938 psi Design Factor Collapse Rating/Collapse stress= 7500/3937.6 1.90 SF Prepared by Stephen F.Henniganq 6/19/2013 Page 10 i TENSILE REQUIREMENTS Tension is usually defined as the body or connection tensile strength(whichever is least)compared to the buoyed weight of casing in mud when run. Buoyed weight is defined as weight in air minus the weight of displaced fluid that it is run in. Buoyed weight formula=MD"Csg WI(tb/f!)'(1-mw/65.45)where 65.5 is the avg wt per cu ft of iron in air. _ 10 3/4" Surface Buoyed weight= pounds 3003'MD x 45.5 ppf"(1-8.8ppg/65A5) 118266 Design Factor= tensile strength/buoyed wt = 1040000/118266 8.79 SF 7 5/8" Intm Buoyed weight= 9498'MD x 29.7 ppf•(I-10.29.3/65.45) 241957 pounds Design Factor= tensile strength/buoyed wt = 6830001241957 2.82 SF 4 1/2" Prod Hole Buoyed weight= 1089T MD x 12.6 ppf'(1-10.2ppg/65.45) 115905 pounds Design Factor= tensile strength/buoyed wt = 288000/115905 2.48 SF Prepared by Stephen F.Henniganq 6/19/2013 Page 11 • 4.10 Casing Test Pressure Calculations Casing test pressures are based on the maximum of MASP or 50%of the BOP ram rating In this well,formation pressure is assumed to be the backup See Casing design and MAWP calculations BOP PROGRAM,Test Pressures and Casing Test Pressures MASP=Maximum Anticiapted Surface Pressure(psi) MADP=Maximum Anticipated Downhole Pressure(psi)@ TD Casing Size Casing Equipment Test Pressure Low/ High 16" Structural Casing @ 120' 21-1/4" 1000 Di‘erter Function Test 70%of Burst N/A Test Pressure Function Test NO Conductor (1) 2.50/ 1500 70%of Burst (2) 250/ 1500 Test Pressure 1500 (1) 250/ 1500 MASP NA MADP NA MASP Casing Design N/A 10.75" Surface Casing @ 3003' (1) 13-5/8° 5000 Annular 250/ 3000 70%of Burst 3647 (2) 13-5/8" 10000 Pipe Rams 250/ 5000 Test Pressure' 2500 J (1) 13-5/8" 10000 Blind Rams 250/ 5000 MASP 3229 MADP 4497 MASP Casing Design 2040 7.625" Intermediate @ 9496' (1) 13-5/8" 5000 Annular 250/ 3000 70%of Burst 4823 Min.(2) 13-5/8" 10000 Pipe Rams 250/ 5000 Recommended Test Pressure 3300 (1) 13-5/8" 10000 Blind Rams 250/ 5000 Test Pressurel 4000 MASP 3938 MADP 5675 MASP Casing Design 3938 4.5" Production Liner @ 10897' (1)1 13-5/8" 5000 Annular 250/ 3000 70%of Burst 5901 Min (2) 13-518" 10000 Pipe Rams 25W 5000 Recommended Test Pressure 3300 (1) 13-5/8" 10000 Blind Rams 250/ 5000 Test Pressure 4000 MASP 3938 MADP 5675 ASP Casing Design 3938 (1) 70%of Burst Min.(2) Recommended Test Pressure (1) Blind Rams 250/ 0 Test Pressure MASP N/A MADP N/A MASP Casing Design 0 BOP Test Pressures for Completion Production (1) Annular 250/ 3000 70%of Burst of weakest csg 4823 Mn. (2) Pipe Rams 250/ 5000 Prepared by Stephen F.Henniganq 6/19/2013 Page'12 I • 4.11 Blowout prevention Equipment Details,Testing and General Procedures SEE ATTACHED DRAWINGS Testing: Onsite supervisor will verify all pressure tests. All tests are to be recorded on the IADC and DDR reports. ALL are to be charted. ADGCC to verify BOP tests(48 hr notice) Casing Size Test /_ Casing (in) MADP(psi) MASP(psi) Casing Test 13OPs Pressure (� est Pressure Fluid MINIMUM 250 psi /� 11)50 Density Size 8.Rating Low/high O es,..-) (psi) /yv. 1 ( ------ Rams are to be dressed for!-"i.'" pipe/ Surface 103/4" As49/- �•[tg 8,8 (1)135/8'5M annular 3000 S''Z(ty (313 l olo 3"' PS" (1)13 5/8.10M pipe ram 5000 1/He (1)13-518"10M blind ram (1)13-5/8"10M drilling spool w!3-1/16`IBM outlets (1)13-5/8"10M pipe ram Ielm 7 518" 3. 38' 5/615 4000 9.3 (1)13 518"5M annular 3000 7 eg too 1-101 (1)5$ • (1)13-5,'8"1014 pipe ram 5000 (1)13-5/8"10M blind ram (1)13-518"10M drilling spool w/3-1116"10M outlets dpy�( H (1)13-5/8"10M pipe ram Prod Hole 4 1/2" /-- 11007; (1)13 5/8'5M annular 3000 Fi/yX13 43 5 (1)13.5/8"10M pipe ram 5000 (1)13-518"1014 blind ram (1)13-518"10M drilling spool wI 3-1/15"10M outlets (1)13-518"10M pipe ram 4 11e The choke manifold will be rated 3 1/8"x 10000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also on the location is a gas buster and a degasser. Flow sensors will be installed in the(towline and the mud pits will have a PVT system. All data will be available to the driller,company men and key individuals. 4.11b Function Testing: Function on each tour. Report test on daily drilling report(DDR)and IARC Prepared by Stephen F.Henniganq 6/19/2013 Page 13 1111 4.12 Wellhead Equipment Summary Component Component/Description Casing Head HSG.WG,5ti2-LWR,11 W X 10-314 SOW W/ORING.W/2 2-1/16 SM FPO 6A-PU-AA-1-2 Adapter flange ADPT,TBGHD,WG.M40-CCL,11 10M X 2-9/16 10M1.WITWC)DHC` .6A-U-EE-NI--1-2 CSGs1GR,WG,SH2.11 X 7-5/8(26.AX-29 74118C BOX x. Casing Hanger 6.12SS-4 ACME PIN,MIN BORE 6.8?p.6A-PO-AA-1-2 TUBING HGR,MB-150.10-314 X 2-7/8, 2-718 EU BRD BOX BOTTOM 2-7(8 EU 8RD BOX TOP,2-1/2 H-8P‘.75K Tubing Hgr W/O-RING SEAL.C^//2 EACH 3/8"CONTINUOUS CONTROL LINES Tree 10k USE SPACER SPOOL(s)AS NECESSARY SEE ATTACHED DRAWING Prepared by Stephen F.Henniganq 6/19/2013 Page 14 0 • 4.13 Directional Program Summary Well is to be drilled as a DIRECTIONAL hole. Surveys will be taken per AOGCC regulations. Comments MD Incl Azim Grid TVD VSEC Northing Easting Build Rate DLS (ft) (°) (°) (ft) (ft) (ftUS) (ftUS) (1100ft) (1100ft) Est.RTE: 000 0.00 90.00 0.00 0.00 279736 2402388 113.3' 0.00 0.00 Tie On 20 80 0.00 90.00 20.80 0.00 279736 2402388 0.00 0.00 Begin9 a nI 1000.00 0.00 90.00 1000.00 0.00 279736 2402388 000 0.00 I End Build 1500.00 500 90.00 1499.37 18.98 279758 2402388 1.00 1.00 Begin Drop 2000.00 5.00 90.00 1997.46 56.91 279802 2402387 0.00 0.00 End D'nl 2500.00 0.00 121.37 2496.83 75.88 279823 2402386 Nudge -1.00 1.00 KOP 4000.00 0.00 121.37 3996.83 75-88 279823 2402386 0.00 0.00 End of Build 4723.95 18.10 121.37 4708.80 189.22 279919 2402325 2.50 2.50 Top of Beluga 5672.06 18.10 121.37 5610.00 483.60 280168 2402168 0.00 0.00 Begin P Angle 7990.13 18.10 121.37 7813.38 1203.34 280775 2401781 0.00 0.00 End of Drop 9196.72 0.00 121.37 9000.00 1392.23 280935 2401680 -1.50 1.50 Primary Tgt Rvs, 10164.72 0.00 121.37 9968.00 1392.23 280935 2401680 0.00 0.00 TO 10896.72 0.00 121.37 10700.00 , 1392.23 280935 2401680 0.00 0.00 Prepared by Stephen F.Henniganq 6/19/2013 Page 15 • • Plots Well Profile ALP' Buccaneer Alaska Operations. LLC AA F4A • AY...Avc 44,4,.. •AlA ..1.4 C.A.44 JAI MI AVIA,,,o0;•1,4 BAKER HUGHES N No'sra.,-ce An,.c sr es 14.1.1441-1 Errs I • t , ve-2,4 tlepe,s are-e4/42•ArAtedt,0.4,..4*,•/:RTE. God„Systi,NX.72-, TN A4543 ra.Zn t 4 v.*refew-cd-c 11R7E, Nark nefertr.z4e Tr,*4.,c,r, 4•1 PE i1•4434,Se,/4.4,44, *13 3 lac Soaeo Tr.*mance. Mex.:Saa L...to f,",..1 -4, S S4CAS t ta-AI Camp%am,sr feta oeat to Stt Cepr.O%Cr Eason.; ft •.411 004.1 1134:434 /A.'3. • ..11.•4. c 44,6414.34.../. 5/01 04 4044 •4,•C444 a^a rew.ci"•-. "• -- ,t1t 4- • s{ 4_ - • A „ ,..ass41—rea. - : • 44.N. tot-0, Tg ATAA•WT.-AA,* tit:"--1 C.*, •ATPX.A. 4/34..4•4 -• • 33. 9.**443 , Ave 1 4t;t1 ICC d t AApagA T411•4441 AT.1440,11.•AnTry I • • 4 0-r•s.W 'r* = .4C4r , -"ertiCa,Sett4C4n tt, kt,,,1,S T.."•4.... Prepared by Stephen F.Henniganq 6/19/2013 Page 16 • • alk,„ Buccaneer Alaska Operations. LLC tai . •.>stt +•.a=ernsu: .a• _, ._ BAKER rre• .a HUGHES aaaxn •:+^a ewc Pao wr t+on tit I( 1\i l k t s:lc-.fa tao.e tar P-37 n kc w,..4 t orptht are nNe•aai„v s NAC,27 ,.0.'Ala.a SG 2o.a;S:2W,.-35 feet Afeasu'ao derees air neferenrOII tv Geo or w^ RFE, *ort Referee..True north IRTE,10 Mean Sea'crsel.115 3 feet Sox*_Tho tl,stanee Mea, MVS.r:r(At lid :3o:04. Q feet De ores are e..fee: _ :ova ani n tee*retic. ceo 10 Io1 ;:Yeats oy,{+tetnon Traveling Cylinder Map North Att depths are Measured Depths on Reference Weilpath or for M+ • 41, alp1IIIt-.__.aMa_____._._+Nf...._ M ._._air._ ..._,...,..._..,ip._ Aw IN mom ♦MoW Wit Scale I inch=60 tt See attached directional program for more details 4.14 Directional Surveying Summary Downhole realtime surveying tool. Magnetic Interval MD(ft) MWD/LAND Mufti Gyro Multi Elog Other Remarks Drive/Structural 0 120 none NC Conductor _ x Surface 120 3003 i x lntm 3003 9496 x Prod Hole 9246 10897 x Prepared by Stephen F.Henniganq 6/19/2013 Page 17 • a Prepared by Stephen F.Henniganq 6/19/2013 Page 18 • • 4.1S-4-16 Drilling Fluids Program Summary and Specifications Mud Program Overview ,,.ud Progra - s Type' Del Ppird Med WDM System dproperties listed below : :.iiil�iiW Depth Mud Wt. Funnel PV Yield Point Gels pH API FL NTHP FL Chloride SLDS (MO) . Visc 10sec/10 min 250.E -Ono^ / Feet / PPS ut/qi :l, I./ICC i12 Ihf/foo 52 CC cc ./if 0-3003 8 8-90 50-150 15-24 <_ 17/24 853.5 <18 P/l. s 5020 <8 1 Add Soda Ash to make up water to treat out any Ca.Pre-hydrate all Bentonite additions.Mix&pump prehydrated gel slurry in case of pea-gravel&massive sands.add Gelex for added viscosity 2 Run all available solids control equipment for maximum solids control 3 pH should be controlled with Caustic and/or Soda Ash 4 Begin additions of PolyPac UL at 500'to lower fluid loss to below 10 m1/30 min 5 Maintain low gravity solid at<8%with dilution and solids control 6 After reaching TO pump hi vis sweep and circulate the hole clean. 7 Condition drilling fluid per cementers after casing is landed to TD. ra' <Type Ktasereld WDM System "e'.. Y"dpro.e u.. Depth Mud Wt. Funnel PV Yield Point Gels pH API FL HTHP FL Chloride SLDS (MD) 10 sec/10min :.-.o.t ..Orin.. Feet DDB ,t8fet cp 1h1/10052 1b11100 52 ,c _, Tngr, 3.003.9.496' 8.89.3 40.50 18.25 15-28 10/12 9.2-10.2 <7 <10 2,503[1 .o 1 Drill out 10.75'casing shoe with previous mud on isolated pit.Perform LOT. 2 The WBM should be maintained with KCI,Fl wzan and PolyPac UL.Maintain concentrations of KlaStop for shale inhibition. 3 Pump sweeps as needed for additional hole cleaning. 4 Pump weighted and LCM Sweeps prior to each trip. 5 Monitor volumes for influxes and potential losses in this section 6 At 3,110'TVD start additions of Sate-Carb 40 at 50 ppb as a bridging agent to prevent any fluid migration. 7 Maintain Asphasol and Sack Black concentrations as needed when drilling if any wet bore instability is seen increase concentrations per M-I SWACO Project Manager. 8 Add MIX t and sized SafeCarb(20,40,250)to the mud for seepage(<15 bph). 9 Run solids control equipment continuously to maintain low gravity solids below 6%. '0 Drill to 9,496'MD. 11 Lower yield point/gel strengths prior to logging and cementing per cementers.Ensure casing has reached TD before adjusting any properties 12 Prior to drilling cement,pretreat the mud system with 25 ppb Sodium Bicarbonate to minimize effects of cement contamination ram Type t(ia„ii,ele WeM 7Syste n •perties listed below: Depth Mud Wt. Funnel PV Yield Palm Gels pH API FL HTHP FL Chloride SLDS MD Vee 10 sec/10 min 250'F Feel ppg seeks cp I5f/100112 h1/t00112 et. CC 151 'rVCL 9 49F.17 097' 93-102 4650 19-25 15.28 7/10 '4 2 0 2 r , 26-321. <6 1 Drill out 7.625"casing shoe with previous mud on isolated pit.Perform LOT. 2 The WBM should be maintained with KCI,Ftowzan and PolyPac UL Maintain concentrations of KlaStop for shale inhibition. 3 Pump sweeps as needed for additional hole cleaning and prior to each trip. 4 Monitor volumes for influxes and potential losses in this section, 5 Maintain Asphasol and Sack Black concentrations as needed when drilling if any well bore instability is seen increase concentrations per M-I SWACO Project Manager. 6 Add MIX II and sized SafeCarb(20,40,250)to the mud for seepage(<15 bph). 7 Run solids control equipment continuously to maintain low gravity solids below 6%. B Drit to 10,897'MD. 9 Lower yield point/gel strengths prior to logging and cementing per cementers.Ensure casing has reached ID before dusting any properties 10 Prior to drilling cement.pretreat the mud system with.25 ppb Sodium Bicarbonate to minimize effects of cement contamination Prepared by Stephen F.Henniganq 6/19/2013 Page 19 • • 4.17 Solids Control Equipment Interval Shaker Desander Desilter Mud Cleaner Centnfuge Cuttings Dryer CJeengs Zero Discharge Comments Closes Loop System Full 0-Total Depth 4 1 Containment,run shakers with finest screens possible Item Equipment Specifications (typical but may not be exact depending on rig) (quality,design type,brand,model,flow capacity.etc.) Shaker 2-SWACO Mongoose PT Desander N/A Desilter 1—Derrick Model 0522 Mud Cleaner N/A Centrifuge 1—Hutchison Hayes 5500 Cuttings Dryer N/A Cuttings Injection N/A Zero Discharge N/A Best Practices: Have vacuum trucks pull fluids from trough above the cuttings tank to more efficiently pull fluids for disposal This minimizes water added to the solids to suspend for pick up by the trucks.thus minimizing total volume to be disposed of Cuttings will be pulled from holding area per diagram_ Prepared by Stephen F.Henniganq 6/19/2013 Page 20 0 I 4.18 Cement Program Summary(Brief vendor prog is attached) Cementing Summary 1 #VALUE" Surface j Size- 10.75 Setting Depth: 3003 ft. Annular Volume(No Washout) 1116.33 cu.ft. Lead Slurry Density: 13.5 ppg Yield: 1 75 cuttlsx No.Sxs: 1380 ✓ Specifications 0 Desired Tope(Cement: 0 ft. Tail Slurry Density: 14.8 ppg Yief& 1.34 cuff/sx No.Sxs: -160 Specifications Type I 8 Hour Compressive Strength of Tait Slurry- 1000+ psi✓ Total Volume. 2200.6 cu ft Desired Top of Cement 3381 ft. 1220 lntm.Prod.Casing 1 Size. 7.625 Setting Depth: 9496 ft Annular Volume(No Washout)- 965.17 cu.ft Lead Slurry Density: 0 ppg Yield. o Cu.ft./sx No.Sxs: 0 Specrticatoris: None Desired Top of Cement N/A ft. Tail Slurry Density. 158 ppg Yield. 1.15 CU.ft./SX No Sxs: 1180 Specifications: Type I Desired Top of Cement. 6000 ft 14-, Total Vokare: 1357 cu.ft 8 Hour Compressive Strength of Tail Slurry: 1000+ psi 1180 Prod.Liner I Size: 4.5 Selling Depth: 10897 It. Annular Volume(No Washout). 237,47 cu.ft Lead Slurry Density' 0 ppg Yield. 0 cu.ft./sx No.Sxs:' 0 I Specifications:None Desred Top of Cement. WA ft. ✓ Tag Slurry Density. 15.8 Cu.ft. Yield. 1.18 cu.ltJsx No.Sxs:' 270 ' Specifications:Type I Desired Top of Cement: 9248 ft. Total Volume. 318.6 Cu.ft 8 Hour Compressive Strength of Tata Slurry- 1000* psi 270 Comments: See cement prognosis for details and spacer specifications.Actual cement volume pumped will be determined by elog caliper and other parameters. Prepared by Stephen F.Henniganq 6/19/2013 Page 21 • • 4.19 Bit Summary iii ` ' Cook Buccaneer Alaska, Ile Inlet Kenai Loop:=1-4 "'1' <,A, +.; C)nl+tag CrE0t:^PAe'4_:.C.A7.7"�'- J__ATC4' :.:TF.::T.':i.f.::.. :.i:`:PY07E;E-.i1T.Ki Coot.haler.AIs.L+ beaccaneer Aial.a Op.anon:.LLC Buceau:ea Jaekup John Sp a At G:r aid R.A4e1 F'm:_^ A.T.EA L^•r.:AT.D^.: G'ELL A:13.1. Kenai Penin.ala k:enai Loop.1.4 BIT DEPTH DIST DRL( ACC • \tl•D No SIZE TYPE OUT DRLD TILE ROP IDLE IS OB RP11 WI DA1"5 REMARKS u "o 4 Ar:. feta - In 1::"- 1 1:r_i ?tL'i'_1 3.003 3003Spec Slreet Par.laaae Pace 531.0'5 - Set 10 3 4•Caeing 2 9-S- T6OSX 9 496 0493 Spot Sheet Rental Plitt S40 000 Top of Tvoouek(5430 1 TVD Set 7 AS"C axing ..___._ 6'.' TD.543X 10,897 1401 Spec Sheet Rental pace 530.000 r 1Set4l.'i"cax;ti 1 DBRLIB Price on Rental Bits is Rental Pikeluc 520.000 I .__ L_ T attE thrrl:a r 1riaRn.ere Prepared by Stephen F.Henniganq 6/19/2013 Page 22 • i 4.20 Casing Test.FIT,Lot procedure Perform Casing Test(CITI -the pressure to which the casing should be tested should be 300-400 psi above the expected surface pressure needed for the leak off test If is NOT necessary to retest to the APD casing test pressure. 1 GIH and clean out to the top of the float collar for casing test. 2 Circulate and condition mud until shaker is free of cuttings and mud weight in is within +1-0 1 ppg of weight out for several consecutive measurements. 3.Rig up,pressure test and check for leaks.Make sure air is purged from the system 4.Pumping down the drillpipe.break circulation with cementing unit(or low volthigh press pump). 5.Close annular BOP or pipe rams 6.Pump down drillpipe at 1/2 bpm.Do not exceed this rate and maintain constant rate as well as possible.Record pressure at each 112 bbl increment pumped. NOTE: Larger than 11 3/4"use 75-1 t:prrr 113,4 9.5$rarer 75-5 horn-plot should be*greater than 45 7.Continue until the test pressure(as described above)is reached.Do not exceed test pressure. Stop pump and shut in valve 8.Monitor and record shut in pressure,hold for at least 5 minutes,or as specified Troubleshoot problems if desired test pressure cannot be obtained. 9.Release pressure and record volume of fluid recovered during flow back. 10.Input recorded pressures and corresponding volumes on the Test section of the"CSG-FIT"worksheet(in the yellow shaded area) This is the minimum volume lire for the subsequent leak off test. Enter flow back when pressure is released Prepared by Stephen F.Henniganq 6/19/2013 Page 23 • • Perform Formation Test(LOT,FIT,etc) -enter all the header information for the well.rig.casing size shoe depth,mud weight,date and your name at the top of the form on the"CSG-FIT"worksheet. 1 Drill shoe track and+20'of new formation. POOH into the casing shoe.Circulate and condition mud until shaker is free of cuttings and mud weight in is within+/-0.1 ppg of weight out for several consecutive measurements 2 Rig up lines,pressure test and check for leaks.Make sure air is purged from the system. 3 Pumping down the drillpipe.break circulation with cementing unit(or low vol/high press pump). 4.Close annular BOP or pipe rams 5.SLOWLY pump down drillpipe and maintain constant rate as well as possible Required rate may vary,but first attempt should be at 1/2 bpm(OR same rate as casing test). Record pressure at each 1/2 bbl increment pumped and plot on the F ORM't,)t F(' ': • section of the '.S^-FiT r worksheet(in the blue shaded area). This will require teamwork among at least two,but better with three individuals.If the'ORM INTEG TEST plot curves BELOW the Maximum Volume Line.stop and bleed off pressure then re-run the test ata higher pump rate(suggest 1/4 bpm higher) Note-also have someone record casing pressure from the choke manifold at the same--bbl Increments. If these pressures differ from the drillpipe recorded pressures by more than 10%,notify the office. 6 Continue until leak off(fracture initiation)is detected as indicated by a change in the rate of pressure increase This is determined by the leak off test chart and observation of the pressure behavior.Once leak off indications are noted continue to pump at constant rate to confirm.If the pressure resumes a constant rate of increase, continue pumping and watch for subsequent leak off indications.If the rate of pressure increase continues to decline,continue pumping for 3 more_bbl increments to insure fracture has occurred(a noticable pressure drop should be evident).If a sudden pressure drop occurs,stop pumping immediately. 7.Record instantaneous shut in pressure(ISIP) Monitor and record shut in pressure every minute for at least 10 minutes. See#11 below 8.Release pressure and record volume of fluid recovered during flow back. 9.If the measured leak off pressure is less than the predicted leak off,then a cement channel may exist.Whenever a cement channel is suspected,the LOT should be repeated for confirmation,If a channel exists there should be little or no improvement seen. LOT or FIT or PIT fin EMWI=pressure(psi)/.052/casing shoe depth 1'TVD) +current mud weight(peel 10.if the Leak Off plot falls between the Minimum and Maximum Volume Lines,this is a good leak off plot Pick the point on the curve where the line begins to break over(the rate of pressure increase has changed from a straight line) This is the leak off value.On a")ug"test,there is no bend.PPG equivalents are calculated on the right. 11.Input recorded pressures and corresponaing volumes on the F c=M il, r-+"> iES1 h section of the"CSG-FIT" worksheet. Values should initially fall between the Maximum volume line and the Csg Test line 12.Input recorded shut in pressures and corresponding times on the Shut In Pressure((SIP)section of the "CSG-FIT"worksheet On the yellow shaded area) This is indicated by ISIP and incremental time @ the bottom of t-()km IN TL/i I LS1 is' - section. Prepared by Stephen F.Henniganq 6/19/2013 Page 24 Buccaneer Alaska Opns LLC O Kenai Loop # 1-4 Block/Sec 33 fin 11w Wildcat 0 Kenai Peninsula 0 Alaska Ser#.: ????? Time vs Depth Casing Size&Depth 0 ---Days vs MD —TVD vs Days 1 000 —Prod Csgilnr I 2.000 1.6 3.000 4,000 5,000 6,000 7,000 8.000 9,000 10.000 j µ 11,000 12,000 13,000 0 5 10 15 20 25 30 35 40 > 's 70T5 7s,s s • . DRILLING OPERATIONS SUMMARY Kenai Loop#1-4 Start Depth Seat Depth Casing interval Hole Size MD TVD MD TVD Size Wt(Ib/ft) Grade Conn Burst Collapse Tension' Drivel Structural Driven 0 0 120 120 16 0.5 N8OHC elded N/A N/A NO Conductor Surface 13.5 0 0 3003 - 3000 10.75 45.5 L80 BTC 5210 2478 1040 Intm 9,875 0 0 9496 • 9300- 7.625 29.7 L80 BTC 6890 4790 683 Prod Hole 6.75 9246 9050 10897 . 10700 • 4.5 12.6 L80 HYD 563 8430 7500 288 i =minimum of body and connection strengths Note: AOGCC MUST be notified 24 hrs prior to each diverter function and BOPe test. NOTE: Conductor 1 Drill/Drive 16" conductor to +l- 120ft. RKB. RD conductor rig. 2. MIRU Glacier Drilling Rig #1. • 3. Install starting head 16" SLC x 21 Y4", 2M flange. 4. Nipple up 21 %4'., 2M diverter, 16"diverter valve and 16" diverter line. 5. Function test diverter and diverter valve. (AOGCC 24 hr notice) 6. Build spud mud. 7. Inspect bha equipment. Surface: 1. PU 5" drill pipe, bit and DIRECTIONAL BHA per bit/directional proposal. Set up WEEKLY STATUS Report for the Commission. 2. Drill w/ low rpm, gpm until stabil( ers have exited drive pipe. Run max gpm, rotary, etc as allowed. Set up logging (if ) as per evaluation section. 3. Continue to drill a 13 "A" hole to 3003' MD// 3000' TVD short tripping and pumping sweeps i as considered necessary. At hole section TD, pump a HIGH VIS sweep and circulate the hole clean 4. Short trip. Circulate hole clean at max rpm and gpm. 5. Condition mud to lower YP and gels. Monitor pill lag and mud log lag times to aid in adjusting cement volumes for hole washout. 6. Prep for excess mud, cement, rinse water, etc disposal. Prep for stab-in cementing job. 7. Calculate landing equipment to make sure we have proper space out with top of landing jt ±4-6'above rotary. Run 10'/"surface casing as follows Baker-Locking the shoe track:: a) Shoe b) Sting-in collar c) Casing With centralizers placed as follows: d) 2 bow-springs with stop collars in center of bottom 2 jts e) Centralizers across the bottom 2 couplings f) 1 centralizer across the coupling of every third jt g) NO CENTRALIZER INSIDE CONDUCTOR AS CASING NEEDS TO BE CENTERED IN ROTARY h) ESTIMATED TOTAL centralizers =±40 w/2 stop collars 8. Perform a running tag. Reciprocate casing. Circulate and condition mud at a rate not to exceed the AV around the collars while drilling. 9. RU stab-in equipment. RIH wl DP and stab in sub, stab in float collar and break circulation. Circulate while rigging up cementing equipment. 10. RU cementing head and lines. Test to 500/5000psi. Cement 10 '/" casing PER cementing proposal with the inner string, cut off cementing when cement reaches surface, dump 2-5 bbls on top of sting-in collar. Circulate clean. Cement volumes are presently designed with 100%excess. Adjust as necessary to allow for cement returns to surface. 11. ND Diverter. Cut casings. Prep to install mud loggers per logging program. Instruct same re dry ditch samples for AOGCC. 12. Install 10 ' " slip lock connection X 11" 10M flanged multibowl wellhead. Test to 50% of casing collapse or 1500 psi whichever is greater. 13. NU adapter spool. NU 11" 10M BOPs. Test BOPs and choke manifold to 300/5000 psi, hydril to 300/2500 psi. (AOGCC 24 hr notice). Ripe rams are to be 2 7/8"x 5"VBR's, blind ' - rams, 5"pipe rams. NOTE: (BOPe MUST be tested every 7 days during the remainder of the well. AOGCC must be notified at least 24 hours before) NOTE: Maintain good communications with regulatory. Communicate with the inspector every couple of days just to let them know what is going on. 14. Set wear bushing. Run CBL. Intermediate: 1. PU 9 7/8" PDC bit and directional BHA w/ LWD. Clean out casing to float equipment. Test casing to 3000 psi recording on a chart. S al 2. Drill out float equipment and at least 20' of new formation. Circulate hole clean. 3. Contact AOGCC. Perform FIT on a chart. Email results. Estimated Leak Off EMW is "T- 14.5 ppg emw. If test is less, discuss with office. A minimum of 13.5 is acceptable. 4. Drill ahead per directional plan. Monitor hole conditions, torque and drag, etc. 5. Continue to directionally drill to ±9496'19300' MD/TVD as per program, short tripping and pumping HIGH VIS sweeps as required. MINIMUM flow rate should be 500gpm. Higher if possible. 6. At hole section TD, pump a HIGH VIS sweep and circulate the hole clean. Make wiper trip. Again pump a sweep and circulate hole clean. Make sure pump is at MAX rate. Hole will require more than just circulating bottoms up. Strap out of hole. 7. Evaluate hole as per program. 8. TIN. Condition hole as before. Condition mud to lower YP and gels. Monitor pill lag and mud log lag times to aid in adjusting cement volumes for hole washout and compare to elog value. 9. TOOH. Pull wear bushing. 10. Change out pipe ram with 7 5/8" casing rams in upper ram, Run test joint and test casing ram to 3v99ensi. Make sure the appropriate x-over with FOSV is on the rig floor for casing run. Sow ,,> 74".g•i3 11. Calculate space out and prep as per previous. Run casing as follows Baker-Locking the shoe track:: a) Shoe b) 2 jts casing c) Collar d) casing With centralizers placed as follows: e) 3 bow-springs with stop collars in center of bottom 3 jts f) Centralizers across the bottom 3 couplings g) 1 centralizer across the coupling of every third jt for the next ±4800' casing (±40) but will be adjusted if Beluga is productive h) 1 centralizer across the coupling of every third jt to surface shoe(±16) i) ESTIMATED TOTAL centralizers= +-62 w/3 stop collars 12. Run and cement 7 5/8" casing per cementing procedure while reciprocating. Land hanger. Cement volumes are presently designed for ±4700' of fill (TOC ±5000'TVD) with 40% excess. Adjust as necessary to insure top of cement to +-5000'. • 13. Back out landing joint. Install packoff and test to 5000 psi. Run test plug and test BOPs to 300/6000 psi, hydril to 300/2500 psi. (AOGCC 24 hr notice) If AOGCC approves, casing may be tested here while testing BOPe. 14. Set wear bushing. LD 5" and pU 4"drill pipe. cg� y000)7 15. Clean out and test intermediate casing to,5'0-psi (w/ 9.3 ppg mud) -adjusted for mud wt in use.at test. POOH. Y1- 5 16. Run CBL. Production Liner: 1. Continue PU 4" drill pipe. 2. PU bit and straight hole BHA wl LWD per bit/ programs. Drill float equipment and 20' of new formation. CBU. 3. Contact AOGCC. Test shoe to an FIT of 14.5 ppg emw on a chart. Email results. Discuss results with office. • 4. Continue drilling 6 '/" hole to an anticipated TO of 10896'MD/10700'TVD as per the program, pumping HIGH VIS sweeps and short tripping as required. Survey at least every 500'. MINIMUM flow rate should be 350 gpm—higher if possible. 5. On drill breaks, circulate out. Monitor gas continuously. Increase mud weight only as necessary. 6. At TD pump HIGH VIS sweep and circulate hole clean. Make wiper trip. Repeat sweep and make sure pump is at MAX rate. Hole will require more than just circulating bottoms up. TOOH. 7. RU logging company. Run open hole logs as per evaluation program. Review cementing program. NOTE: Either proceed with liner for welitest/completion below or submit Sundry per AAC 25.105 for Abandonment or per AAC.25.072 for Temporary shutdown or for potential sidetrack. 8. TIH w/6 '/" tri-cone bit to TO for wiper trip. TOOH and laydown BHA and drill pipe. Leave enough 4" to run the liner. Pull wear bushing. Make sure the appropriate x-over with FOSV is on the rig floor for casing run. 9. RU and run 4 '/z" Hyd-563 casing liner with hanger on drill pipe. Liner hanger is to be fully rotatable and reciprocable while cementing. Run liner to TD with top of liner at approximately 9750' MD. On bottom reciprocate and rotate liner while circulating the hole Run casing as follows Baker-Locking the shoe track:: a) Shoe b) 2 jts casing c) Collar d) casing • I With centralizers placed as follows: e) 3 bow-springs with stop collars in center of bottom 3 jts f) Centralizers across the bottom 3 couplings g) Centralizer placement from shoe track to the base of the 7 5/8" will be determined by log interpretations h) 2 rig ids in liner lap area i) ESTIMATED TOTAL centralizers = ±25 w/ 3 stop collars plus additional across productive intervals 10. RU cementing company. Cement 4 'f2" while reciprocating and rotating pipe. Drop wiper plug/bump plug. Pressure up and set the liner hanger. Release hanger running tool, set liner top packer, pick up and clear seal area of any cement. 11. Circulate hole clean while rotating if possible. Make note of cement in returns. Test 7 5/8" casing and line,to psi (Production MASP). POOH. " Yce° /_` x'7.9•/3 Well Test/Completion: EL_ L �( 12. TIH w/ mill and scrapers spaced out for casing lengths. Work same. Displace with completion fluid 13. Completion Procedure will follow with a Sundry_ 14. Rig down and move out drilling rig. • III Planned Wellpath Report FARO KL#1-4 Version#2 BAKER Page I of 6 1"1,1iV.11.1; HUGHES Rt II RI NCI' Nk El II till IDENTIFI('‘.1.10‘ _............... !Operator BuccaneerAlaska Operations,LLC Slot [slot#4 Arca Cook Inlet.Alaska(Kenai Peninsula) Well Kenai Loop#14 !Field tKenai Loop Wellbore 1KL#14 [Facility 11Z.Cnai Loop Pad 1 i RIPOR I ',1'Ill'INFORM%ILO's !Projection System 1NAD27/TM Alaska SP,Zone 4(5004),US feet ISoftware System 1Wel1Arehitect81 4.0.0 North Reference !True User !Jonelhoh Scale 0.999955 Report Generated 1184un-13 at 7:13:34 Convergence at slot lila IDatabase/Source file 1WellArchiteetDB/K1.#1-4.xml --] ki FLIT t Ill 10( k I lirs r ' .... Local coordinates Grid coordinates Geographic coordinates NorthIft] ' Eastf ill EastinglUS ft! NorthingIUS ft1 Latitude Longitude !Slot Location 122.86 I 189.30 279736.26 2402387.92 60°3412.708N 151°1327.893"W ['Facility Reference Pt 279544.71 2402268.61 60'3411.498"N 1 151°13'31.681"W !Field Reference Pt 279544.71 2402268.61 60°3411.498N 15113131.681W 4i Calculation method Minimum curvature Glacier*1(RTE)to Mean Sea level 113.30ft • ,/ 'Horizontal Reference Pt 'Slot Glacier#1(RTE)to Mean Sea Level 113.30ft vertical Reference Pt Glacier#1(RTE) Glacier#1(RTE)to Mud Line at Slot(Slot#4) 113.301t MD Reference Pt Glacier#1(RTE) 1Section Origin N 0.00,E 0.00 ft Field Vertical Reference Mean Sea Level }Section Azimuth 119.50° I • I Planned Wellpath Report //� KL#1-4 Version#2 BAKER oittw(AN�:r>; Pail 2 c11-h HUGHES 1 \1 K/. Y R1 FFK1:\( E:til ELL1'.VI ii WEN I H7( \ it t\ Operator Buccaneer Alaska Operations,LLC Slot Slot#4 1 !Area- `Cook Inlet,Alaska(Kenai Peninsula) Well !Kenai Loop#1-4 Field_ ore Kenai Loop -Wellbore (KL#1-4 Facility Kenai Loop Pad 1 -, -____,_ r_ ELLPATH DATA(121 stations) t s interpolated/extrapolated station MD laelilatiau Azimuth 1 TVD TVD from !Vert Sect North 1 East 1 Grid East I Grid North 1 Latitude Laegitade DIS Build Rate Tun Raft ammeuta MI 11 11 i 101 FId Vert Ref; 101 int i 101 1 !US n1 , IUS UI I `1°rt00D1 1./10014 MOOR] f20.80 0.000 90000 20.801, X92._0 _ -- r - .�.__ 1 1 0.00+ 0.000 0.000 90:000! 0.00 113 30; 0.00 0 UU O fNl '7973(1.26 2402387 92 60°34'12.708"4 151°13'27 893"W 0.00 000 0.11" >rt RTE:113.3' I ) � 000 0 00 000 279736.26 2402387921 60°3412.708"00 151°13'27.893"w 0.00 0.00 0(Xl' te On 120 8041 (woo 90000 120,801 7.50. 0.00 1 0001 000 279736.26 240238792! 60°34'12.70814 151°1327.893"w 0-001 0.00 0 00 2208011 0.000-90 oaf 22080 107501 (100` 000 0,00 279736.26 24023879' 60°34'12,708"N 151°13127 893"W! 0.00' 0.001 0001 1x7320801 0.000 90,000 320.80 207.50 0,00 0.00 0,00 279736.26 2402387,92 6094'12.708"00 151°1327.893"34. 0.00 0,00 000 420.8011 0.0001 40.000 420.80 307.50 000 000 j 0.00; 279736161 2402387 9' 60'.4'12.708"N 1511327893"W 1 0.00 0.00i-- 0.00{1 520.8041 0.000 90,000 520.80 407-50 0-00: 0.0-0-1 0.001 279736.261 2402387 92 60-.1'4'12 708"N 151°13'27.893"W 0.00' 0,00 0.001 obi • 620 8011 0.000 90.000 620,80 507.50 0,00 am 1 0.00 j 279736.26( 2402387921 60°34 12 708"N 1 151°13'27.89M 0,00 000 0.00 720.80f1 0000 90.0001 720,80, 607,50. 0001 0.00 0.00, 279736 26. 2402387 92 60'34'12.708"N! 151°1317.893'1W, 0.001 0.00: 0.00 1 #20.801 0000 90;000L 820,80 707,50 000 000 0.00 279736.26 2402387 92 60°34'12 708`N 15113'27 893 W 000 0.00 000 920.801'' 0000 90001:920.80 807.50 0.004 0.00 0.00 279736.26 i 2402387.921 60°34'12.708"N, 15113'27.893"W 1 0.00, 0.00 0.00, , 100000 1 0.0001 90:0 1000.0-01886.70 0.011 0001 000 279736.261 2402387921 60°3412708"N j 151°13'27.893"W! 0.001 000 0.11 Begin D'n1 Nude / 1020 801! 0.208! 9D OUO: 1020801 9117.50 1 0,03' 000 (1.041 279736.30 240238792 60°34'12.708"Nr 151°1377.893"W 1.00 100 0.00, i 1120.805 1.208 90.000.. 1120.79 1007 49 I.I I 0.00 1.27! 279737 53 2102387 90 110`34'12.708"N i5 i"13'27 868"W I.00 1 00 0.00 1 1220.80+ 2,208 90000 1220.75 1107.45 3.70 0.00 4.25 279740.51 2402187.84 60`'3412.7081N 151°1327.808"534 1.00 1.00 0.00 3, 208 , 132080+' 1207 � 4(1000 1320 63 !207.33 7.51 000 8.98 '7)45.24 2.10238'75 60` 4 t'708"V I5 1'13 7 714'134 1 00. 1 W: 11.00 1420.811I 4.208190.000 1420 42 i1 1307.12 13.44 0.00 115.45 1 279751.701 2402387 63 6034!2.708"N 151-13127,584"W 1 00. 100 0.00 _ 150000 i 5`000 90^0001 1499.371- 1386.071 18981 0,001 21.801 279758.06 12402387.51 6094'12.708"N 151 13"27.457"341' 1.00 100 0 00,End Build„ 1 1520 80+ 5 000 90.000 1520 09 1406 79 20 55 000 23.62 279759.87 2402387A8 6034'12 708"N 151°1327.421"0.' 0.00 0.00 000 1 1620.80+ 5.000 90.000 1619.71 1506.41 28,14 000 3233 279768.58 240238732 60°34'12.708"N 151°13'27.246"W 0.00 0.00; 0.00 1 1720.80ti 5.000 90.000i 1719.33 1606.03(' 35.731 0.001 4105 279777.30 2402387.161 60°3412 708 N 151°13'27072"W 1 000 0.00 000' 1820 8011 5,000i 9000001 1818.94 170564{ 43.311 0001 4976 279786.01 2402386991 60°34'12.708"N 151°13'26.898"W 0.00 070 0,00 1 1920.80.1' 5.0001-90.0001 1918 56 1805.26 50.9017000 00;58.48 279794.73[ 2402386,831 601-1127081'. 151°13'26.723101 000 01101 0 1 2000.00 5.000 90.000' 199746' 1884.161 56.9117100'65.38 7 279801.63' 2402386-70, 60°14'12.708"N 151°11'6585'35 0.00 000 0.0013iDrop 2020.805 4,792 90.000 2018.19 1904.89' 58.45 0.00 67.16 279803.40 2402386-67 60°34'12,708"N 151°13'26.550"3V 100 -1.00 000 1 2120.8011 3,792j 90.000 2117 91 2004.61 I 64.961 000 74.64 1 279810.88' 2402386 53 60''.34'12.708"N j 1511326.400"W (00 -1.00 0.001 2220.80+; 2.7921 90 008 2217_74 2104.44 6996 0,00180.38 1-2779816 62 2402386.42 j 60°34'12.708"N f 151'13'26.285"W! 1 00 1 00 0001 2320,80+ 1792' 90 000 2317.66 2204 361 7344 0.00 84,381 279820.62 2402386351 60°34'12.7081,11 151"13126.205"W 1.00 1 00 0.00 2420.801, 0.792 90 000 2417 63, 230433 r 75A1 0,00 -116.611-2791322.88 2402386 31 3 6094'12.708"N! 1519326 160"W 1 1.00 -1 00 0.00' 2500.00 0.000 121.366 2496.83' 2383.53` 75.88 0.00;87.18-7 279823.42 2402386.30' 60034112.708"N' 151°1326.149"W 1,00 -1.00, 0-00 End OW Nudge 1 0 ALFV. r- Planned Wellpath Report �` KL#1-4 Version#2 i Page 3 016 BAKER 111` <Y�� \ HUGHES. REI Ea2E\CE WEL,l.P.%TN Mt\I I1.7('_1ll(N Operator ;Buccaneer Alaska Operations,LLC Slot +Slot#4 'Area Cook Inlet,Alaska(Kenai Peninsula) WellKenai Loop#1-4 Field Keuai Loop Wellbore KL#1-4 Facility^__.!Kenai Loop Pad 1 WELLPATH DATA ) t=interpolated/extrapolated 121 stations ( station �.. tito ,incivafion 1 Azimuth TVD ) TVD from 1 Yen Sett North ! EMI 1 Grid Fail Grid North 1 Latitude Longitude DLS Bold Rote Turn Rate mimesis inl 11 1°1 Inl 1 Mid Vert Ref 1 101 Iftl m l JUS hl [US el ; moat: mom mom 1 Int I 2520.80+ 0.000 121.366' 251763 _ 2404.331 7588' 0.00 87.18 279823.42 240238630 60°34'12.708"N; 151°13'26.149"W 0.004 0.00 000 2620.80f 0.000 121 3664 2617.63 I 250433 1 75 88.` 0 00 87.18 279823A2 2402386.30 60'34.12:708"N! 151°1376.149"W 0001 I 000` 000 272080+ 0.000 1213661 2717.631 t 2604.33 7588. 0 00 87.18 '279823.42 2402386.30'-'60°34'12.708"N' 151.1326.149"W 0.001 0.00 0.00 2820.801; 0.0007-121.366' 2817.63: 2704.33 75.88 000 87.18` 279823.42 2402386 30 r 60'34'12 708"N 15111'26.149"W 0.00' 0.00 0.00 292080+ 0.000 121.366 2917.63 2804.33 75.88 0.00 87.18 279823.42!'240238630 60'34'12 708"5 151'13'26.149"W 0.00 0.00 0.00 3020.8011 0.000 1 1366, 3017 631 2904.33+ 75.88 0.00 8718 279823.421 2402386.30 60`34'12.708"N 15193'26.149 N 0 00 0.00 0.00' 3120.80+1 0.000 121.366; .3117.63 i 3004.33 i 75.88 0.001 8 r 18 279823421 2402386.30 60034'12 708'ti 151°13'26.149"W; 0.00; 0.00 0 04 F322080+1 0.0001 121.366321743 3104.33 75.881 0.00 1 87 181 279823.421 2402386.301 60°34`12 708'N 151'13'26.149"vv 1 0.00 i 0.00 0.00, 3320.80t1 0.000 I21.366r 3317.63 I 3204.33 75.88 0.00 87 18; 279823 42 2402386301 60'34'12.708"N 15161376 149"W I 0.00(-- 000 0.001 3420 80t 0.000 121.366 3417.63 3304 33 75.88 0.00 87.18 279823.42 2402386.30 60°34'12.708"N 151°1376 149''W 0110 000 0 00 3520 80] 0.0041 121.366 3517 6; 3404 33 75.88 0.00' 87 18 279823.472402386 30 1 60°34'12 708"N 151-13'26.149"W (100, 0.00 0.00: { 362080+ 0.000 111306 36176: 750433 7588 0.00 87.18 27982342$ 2402386.30 6034'12708'N 1511326.149W 0001 0.001 000 3720 80+ 0.000 131.366 717 63 3004.33 75.88 0.00, 87.18, 279823 42 1 2402386.30 60'34'12 708'N I 151'13'26 149"W' 0.00'` 000 0 00 3820.80+ 0.000, 121.366- 3817 03 3704.33! 75.88, 0 00 87 IS 279823.42. 24(12386.30 60'34'12.708"N; 151`13'26.149"W 0.00 000 0 00 392080$ 0.000 121-366 391763 3804.33 75.88 0.00 87.18 27982342 2402386.E 60°34'12.708'1,1 151°13'26.149"W 0.00 0.00 0.00 . 4000170 0.000 121.366 3996.83; 3883.53 75.88 0.00 87 181 27982342 2402386.301 60'34'12.708"N 151'13'26(49"W 000 0.00- 0.0011:012 r 4020.80+' 0.520 121.306 4017.63{ 3904.33 U0 75,98 5 87.261 279823.50 2402386.25 60°34'12307"N 151=13'26.147 W; 2 50 2.501 0.0(� 5 i 4120 80+1 3.020$ 171 366' 4117 571 4004 27; 79 06' 1 66 89.901 279826.11] 2402384.59 60°3412.692"N 151'1376.095"W T /50 2.50 0.01 422(180+ 5.520 121.366 4217.29 29 4103.99 86.50 -5.53 96.261 279832391 2402380.60 7 60'34'12 653"N 151'13'25 967"W' 2 50, 2.50 0.00 4320.80+ 8,020 121.366 4316.58 4203-28 98.29 -11.67 106.32 279842.34 240237428 60"34'12.593"N (S1°13'25.766"W 2.50 2.50 OM 1 tj 4520 fit$ 13 10.520 20 l'1 366 a 5 I?16 4349.86 (34 7 E 30.67 137:49 _.-_ 2791155.941 2402365-641 60°34'12 510"N. 151-13'25 491"W 2.50 2.501 Q00 7 279873.15] 2402354.701 60°34'12.406'N' 151 13 25.132 13' 2.50 2 301 0. -43 51279918 2-- - � 5,? � 158 S4 279893.95 2402341 48 60°34'12/80"N1 151'1374321"W' 2 50 2 50� 0. 4620.801 1 (1 I 1 66. 4610(K> 4496.76 1 S9 4(1 1 -43 50' f 4720.80+ 18 0_0 121 3(16 4705 80 4592,50 18824 183.17, 2 79918 30 2402326 01 i 60'34'121 32 N' 151°13'24 228"W 2 50 1 2.50` 0.00; 4723 95 18.099 121.366 4708.80 4595.50 189.22 -59.02 184.01 279919.13 2402325.49 760°34'12-127"N 151"13'24.212"W 250 2.50 0.00 Rid of Ruild 2 4820 ROt 180991 17 L366. 4800.86 468756 219.9 -74.68 209 70 274944 52 240 109 35 60"3411.97rN I5l 1 i a 69$N 000 0.00 DUO .-7.-.. 7 -_- '23 5020,$0+1 18.099 II1.366 4990.96 4877,66 '23622( 279970.74 1 2402 97 69 6D 34'11813"5 S 151°1323.167'15'1 0.00 t 0 UU 000 4 __ 51208011 1-11.09* 121'16615086.07 49122.71 250.341 90.85 26 751 279996.96! 2411717609 6034'116545 15113^2.636W 000( 000 000 -� �.61� .81.39' -]0702 _9727._ ;1243 -12319 289''7280023.181 240225)37 60°34'11495"N 151°1372.105"W 000 000 0 522080+ 18.099 121.366' 5181.07 5067.77 343.48 -139.36 31580 280049.40 2402242.71 60°34'11,335'14 151°13'21.575"W 0.00: 0.00 0.00 • II Mill Planned Wellpath Report KL#1-4 Version#2 BAKER Page 4 al") KU AN-11-8 HUGHES 1- NEKGN REFEKEM O,it,NELI.PATil 101 \Wit ‘1 11)\ .. ._ Operator Buccaneer Alaska Operations,LLC Slot Slot#4 Area Cook Inlet,Alaska(Kenai Peninsula) Well Komi Loop#1-4 itield Kenai Loop Wellbore KL#1-4 Facility Kenai loop Pad 1 WELLPATH DATA(121 stations) f=interpolatecliextrapobtecl station MD !Inclination'Azimuth 1 TVD 1 TVD from 1Vert SiTiT North 1 East I Grid Last I Grid North LudeE Longitude DLI Build now Tare Rate Commons go i tot 11 1 1(81 !Rd Vert Ref' 1111 101 101 JUS ftl 1 [VS til rflO0111 Imoonl 1°,10001 ,.. • 1- 5320 80+ 18.0991 121 366 5276 12 5162.82 374.53 -155.53 342.33 280075.621 2402226.05 60°34'11176N 151°1321044"W 0.00 000r 0.00 5420.80t 18099? 121 366 5371 17 5257.87 4(1c55?-17170 368.85 28010184 1 2402209.391 60.34.11.017 1\1 151°1320,513W0.00 O. 0.00 r 5520.80f 18.0991 121.366 546(122 535/92 43663 -187.87 395.38 280128.051 2402i9231 60°3410.858"N r 1511319,98M 0.00 0.00 0.00i c620813+ 18.099 121.366 5561 27 5447 97 I 467 68 -204 04! 421.901: 280154.27' 2402176.07 i 60'3410.698N 151°1319.452"W! 0.0C-if 000 0.061 567206+ 18.099 121.366 5610.00 5496.70 453 60 '1233- 435.50 280167.71 2402167.53 60°3410.61rN 151°1319.180'W 000 000 0.00 Top of Beluga , 5720.80+ 18.099i 121.366'5656.33' 5543.03 i 498.73 kt.?20.211 448 43 280180.491 2402159.42 60°3410.539\ 151'1318.921'W 1 000k 0.00 0.00; 582010+ 18.0991 121.366 5751.38 53.11,011h 529.781-236.38 474.96 '8020671[240214276 60°3410380N 1511318.390"W 11-0.001 0.00 0.00' -j..... 5920.80+1 18.0991'121.3.. 5846,43? 5733.13 560.83 -252.55 501.48 280232.93 2402126.10 60°34'10.221"N 15101317.859ski 0.00- 0.11 0.003 602080*; 18.099r.. ' 121 366 5941.48 5828.18' 591.88!-268.72 52801 280259.15 2402109,44 60°3410.062"N 1511317.329W' 0.00, 0.00. 0.00' 6120.80+ (8099 121.366 6036.54 592124 622,93 -284.89 554.53 280285.37 2402092.78 60'3409.902"N 151°1316.798"W 000 000 0.00 ' 6220801. 18.099 121 366;6131.39 6018 29, 653 98 -301 06 581.06 280311.59. 2402076.12, 6034'09.743"N 1511316.2671V 1 0.00 0.00: 0.00: 1620.80118990 121.364622664 6113 34 68501 -317 22 1 607.591 280337.811 2402059.461 60°3409384N 1 151°1315.736W 1.-- 000, 01101-- 0.00T 6420.801, 18.099 121.366 6321.69 6205 39 716.07 -333 39' 634.11 280364031-2402042.80 1 603409.425N' 1511315.206W 1 0.00 0.00 0.001 1 6520.80+ 18,099 121.366 6416.74 6303 44, 747.12 .34956 660.64 280390.25 2402026.14 60 34'09.265"N 151'1314 675"W 1 0.00 0 00 0.0 6620.80+ 1801.71W.360'6511.80 6308.50 *1:17 -365.73 687.16 280416.47 2402009 48 (03481806\ 151'1314 144"W 0.00 0.00 0.00 6720.80+ 18.0991 121.3661 6606.85T 6493,551 809.221-381.90T 713.69 1110442 68 i 2401992 82 60 34118 947'N 151'13'13 614"W 000 0 00, 0001,L 6820.80t 18.0W 121.366 6701.901 6588.60t 840.27 -398.07 740.22? 280468.90, 2401976 16, 60'34'08.788"N 1 15113'13:083W 0.001 0.02. p.0a_ I 6920.80t 18.099T 121.366 796.95 6683.651 871.32 -414 24, 766,74 280495.12 2401959.50 i 609408.628"N! 151°13.12.55rvi I 0.00 L.. o.00r- 0.00L 7020.80f: 18.099 ('1 ,66'6892.01' 6778 71 1 90'37:-430 41 791.271 2805'134 2401942.84' 60 408469 , 151'1312.021"W 1 0003 000 1.1.01) 7120.80* 18.099 121.366 6987.06 6873 76 933.42 -446.58 819.79 ri 280547.56 2401926.18 60°3408.310"N 151°1311491"W 0.00 000 0.00 [ 7220 80+; 18.099i 121.366'7082.11 6968.81, 964.47 -462,75; 846.32 28057378 2401909.52' 60°3408.151''N 151°13'10.960°W 0.011 0.01 000 7320,80t 18.099 121,366 7177.16 7063.86; 995.52,-478.9/[ 87244 280600.001 2401892.86 60'34'07.991"N 151 1310429W 000 0.00 0.00 74'080t 18.099 121.3661 7272.21 7158.91 -1026.571 495.09 i 89937 280626.22 i 2401876.20 60°34'07.83r N 151°13'09.899"W 0.00 0.00000- c-- T....±__ 7520 80+ 18099 121.3661 7367 27 7253.97' 1057.62 1-511/61 925.901 280652 A41 2401859.54, 60+34107.673"N 151'1309 368W 0.00 00010.00! 762080* 18.699 121 366 7462 32 7349.02 1088.67 -527.43 95'42 280678.66 2401842.88 603407 514"N 151'1308.837"W 0.00 000 0.00 T- ... 7720.801, 18.099L 121.3661 7557.P 7444.07. 1119.71,-54.360 1 978.95 25070458! 240182622 1 60-3407 354"N; 151'1308.306"W. 000j 0.00, 0.00, 7820.801 18.0091 121.3661 7652421 7539.121 1150.761-559.771 1005A71 280731.10 2401809.56 60°3407.195N 1511307,776W 000! 0..- - 0.00f 792080* 18.099 1213661 7747484 7634.181 1181.811 57594$- 103200! 280757 31 2401792.90 60°34'07.036N 151°13'07/45W 0003 00.1- 000 7990.13 18.099 121.3661 7813.381 7700.0811203.34 F587.15 1.105039 280775.49 t 240178135 60°34'06.925N 151°1306.877"Wf 0001 0.00 0.00,166gin.Angle Drop I 8020.80f1 17.639' 12.1.366 78.42.57 7729,27 1212.75:-592.05 1058.43 280783.43 '2401776.30 60.73-4•06.t7IN 151°13'06316"w, 1.50, -1.50 0.00 1 4 M Planned Wellpath Report Piiiill KL#1-4 Version#2 BAKER Its;t\N 11'=1 Page 5 of 6 HUGHES Rill:HENCE i1Hit'111I IWJI.1111-H s III)' -operator Buccaneer Alaska Operations,LLC Slot Slot#4 Area Cook Inlet,Alaska(Kenai Peninsula) Well Kenai Loop#1-4 Field Kenai Loop Weilbore KL#1-4 Facility Kenai loop Pad I S. F:LLP 11 It 11,11"A(121 Stations) t=interpolated/extra fated station MD Inclination Azimuth TVD TVD from 'Ven Secy North Eat Grid East Grid North Latitude Leukemia I DLS Band RotelTurn RmeCm emtuts 1111 II 11 1111 FM Ven Ref IN1 Iftl IDl IUS R) (USR( MOOR' 1°pooftl I171a0n1 8120.80+I 1613%121366 7938.251 7824.95 1241.78 -607.1711083.23 280807.95,2401760 73 60°34'06.728"N 151°13'06:220 N. 1,50 -1.50 0.00 822080* 14 639(121.3661 8034.66: 792136 1268.30 -620.98 1105.89 280830 35 2401746.50 60°34'06.592"N 1511305.767"W 1-50 -1.501 0 00 832O80* 13 13981213661 8131 74 8018.44 129/29 633.47 1126.39 280/150.61 2401733 62 60°14'06 469'N 151°t 3 05 357 N 1 50 1.501 0110 j 8420.80+ 11.639121 3661 822940 8116 10'1313,74 644.64'1144 7072-80868.71 2401722 12 60`34'06.359"N 151"13'04.990"W 1.50 -I.50h.' 0,00 8520.80* 10.139 121366 8327.608214.30 1332.62 -654.47 1160.83 280884.66 2401711.99 0°3406.262"N 151-13'04 667"W 1.5(1 -150 0.00 , 8620.80+1 8.639'121.366 8426 26 8312.96'1348.92 1-662 96 1174.76'280898.43 12401703.24 60°34'06.179"N 15113'04.389"W 1.50 -150 0.00 8720.80+ LL 7.139 121366 852531 8412.01 1362.64 -670.11 1186.481/80910.011240169518 60°34'06.108"N 151°1304.15r W 1.50 -150 0.00 8820804 5.639 121366 8624.69 851119 1373.76 -675.9011195.98 2809194012401689 91 60'34'06.051"N 151°13'03.964"W 1.50 -1.51 0.00 8920 801- 4.139 121 366 872412 f 861102 1382.28 -680.33 1203/61280926.59'11401685.34 x°34'06 008"N 1511303.819-w 1.50 -1.50 0.00 1 9020.80+:_____t_2-639112.1W-1814.14; 7111.84 1388.18 -68341 1208.31280931.5812401682.17;6os34'05977"N„151e13'03.718"W 1.50 150 0.00 912_0 80* _1.1391121.366 8924.08 8810.78 1391.48 -685.13 1211.12'128093436'2401680.40 60°34'05.960"N 151°1303.661"W 1 1.50 i 50 0.00, 9196.72 -- 0.000121. . 9000.008886.70 1392.23 -685.52 1211.76 280935.00 2401680.00 60°34'05.956"N 151°13'03.648"W 1.50 -150' 0.00EndofDrop _ 9220.80+ 0.0!x1,121.3661 9024.08 u-8910.78 1392.23 -685.52 1211.76 280935.00 2401680.00 60°34'05.956"N,151°1303.648"W 0.00 0.00 0.00 9320.80+1 0.000 121 366, 9124.08 I 9010.78 139/23 685.52 1211 761280935 00 240168000 60'34'05.956"N 1-15 V1:303.648"W 0.00 0. 000 942080+ 0 000 121.366 9224.08 9110.78 1392 23 -685 52 1211.76 280935.00 2401680.00 60°34'05.956"N 151'13.05.64r91 W 7to too 000 9520804 0.000 1 2 1 366 9324.08 9210 78 1392.231-685.5211211.76'280935.00;2401680.00 60'34'05.956"N 1 151'1303448"W 1 0.00' 0.00 0.001 9620804 0.000,121366, 9424 081 9310 78 11392 231685 5211211.76 280935.00'2401680.00160°34'05956"N 60°34'05.956"N 151°13'03.648"W 0.00 I (tool _0.00( 79720.80f.._ 720 80tr 0.000;121366 91>4081 9410.78 5392.23T-685.5211211 76 280935.00 2401680.00160°34'05.956"N 151°1303.64rW 1 0.001 0.001 0.001 9820.801-! 0.000!121.366'' 9624.08 9510.78`1392 23 4)85 52'1211 76'28093.5.00 2401680.00 60°34'05.956"N 151°13'03.648"\V' 0.00' 0.00' 0.00 1 9920.801-. 0000 121.366 9724-08 9610.78 1392.23 -685.52 1211.76 28093500 2401680.00 60°3405.956"N,151°13'03.648"W 000 000 0.00 10020.804 0.000(j'121.3661 9824.08 i 9710.78 169223 685.5211211.761280935 00 2401680 00 60'34'05.956"N 151°13'03.648"W 0.00 0.00. 0.00• 10120.80+, 0.0001121.366'. 9924.081 9810.78'1392.231-685 52 1211.76 1 280935 00 2401680 1x1 60°34'05.956"N 151'1393.648"W 1 0.00 0.00 0.00 10164 72 ; 0.0001121.366 9968.001 9854.70 1392 23 -685.52 1211.76 _8093500 22401680 00 60"34'05.956"ti 151'13'03.648 W1 0.00 0.00, 0 001'runar3 Tgt Rvsd:17-Itm-13 i 1022080* 0 0-0-07121 366 10024.08 9910 75 1392 23 -685.52 121 1.76 '_80935.00 2401680 00 60-34'05 956-\: 151-'13'03 648"'' 0.00 0.001 000 10320.80t 0000 121366 10124.08 10010.78 139213 -685.52 1211.76 280935.00 2401680.110 60'34'05.956"ti 151'13'03.64V W 0.00 0.00 0.00 10110 781 1392 2 3 685 52 1211.76 280935.00 2401680 00 60-34'05 956 N 1 151`13'03.648"W j 0.00 0.00 0.00 10420.804 0 000, ._. 121.366 IG ?4 08 10520.804 0 000'121 366 10324.08 10210.78 1392.2'31 685.52 1211.7612809350012401680 00 60 34'05.956"N 1 151 13 03648 W 1 0.00 0.D0 0.00 10620.80+ 0000 121 366 10424 08 10310.78 139/231-685.52 tI211.76 280935.00 j 2401680.00 60'31'05.956"N 1 5 11303 648 Vi i1 0.00 0 Doi 0.00 10720.804' 0 000 131.366 10524 08 10410.78 1392.23 -685.52 1211.76 280935.001'2401680.00 60'3405,956"N.151 13 03.648'''' 0.00 0.001- 0.00 `10820.80* 0.000 121 366 10624.08 10510 78 139223 -685.52 121176 280935.00 2401680.00 60°34'05.95614 151°1303.648"W 000 000 000 0 ilk. Planned Welipath Report 1/4111111 KL#1-4 Version#2 BAKER txc`t V�t t t Page 6 of HUGHES I u REfE:RF\( E 111.1.I I'1111IDE\1'111C',tlIO\ iOperator ,Buccaneer Alaska Operations,LLC.' Slot (Slot#4 Area Cook Inlet,Alaska(Kenai Peninsula) Well Kenai Loop#1-4 Field Kenai I.o(q) Wellbore KL 81-4 - -_ - _ Facild) Kenai loop Pad 1 WELLPATH DATA(121 stations) MD 1 Indinatim 1 AsimnihT TVD TVD from Vert Sect North East Grid Fast Grid North I Latitude 'Longitude D1 S 1 5 omut 4 Rate Turn Rate enta Ifo 1"1 I°I , Int Fro vert Ref IRI lit Irti IUS 1t1 IUS nl -r- 'r/tooftl 1^/1oo41 I^n00ftl n 10896.72 4 0.000 121 366 10700.002 10586 0 1392 23 685.5 t 2,,' ;,, 280935.00 2401630.00 60'34'05 956"N 151'13'03 648''w 000' 0.001 0.00JTD HOLE&CASING SECTIONS-Ref Wellbore:Kl,#14 Ref Weipath KL#1-4%ersiun#2 String/Diameter I Start MD End MD Interval Start TVD End TVD Start N/S 1 Start E/W End N/S End E/W I111 Ifil Iftl Ift1 IRI IRI 1 iftl Iftl Iftl 16in Conductor 20.80 120.00 99.20 20.80 120.00 0.0 0.00 0.00 0.00 13 5in Open Hate 120.00 3003.17 2883.17 120.00 3000.00 0.00 0.00 0.00 87.18 10 75in Casing Surface 20.80{ 3003.17 2982.37 20.80 3000.00 0.00 0.000.00 87.18 19 87Sin Open Hole 3000.001 3003 17 9496.72 6493.55 9300.00" 0.00 87.18 -685.52 1211.76 7 f_2Sin Casing lntennediate 1 20.80 9496.72 9475.92 20.80 _ 9300.00 0.00 0,00 -685.52 1211.76 ( 75in Open Hok i 9496.72 10896.72 1400.00 9300.00 10700.00 -685.52 1211.76 -685.52 1211.76 4 5m I mer 9246.72 10896.72 1650.00 9050.00 10700.00 -685.52 1211.76T -685.52 1211.76 TARGETS ---- Name MD TVD 1 _ _ North East Grid East r Grid North Latitude longi hide Shape Ift1 IftI ( (ft lit' IUS ftI [US ft) I 10164.72 9963.00 -685-52 121176 280935,00 2401680.00 6094'05.956"N 151'13'03648"11' point 11 K1.#1-4 Primary Tgt Rvsdc 17-Jun-13 _......__-__._ I _ 2)KL#1-4 Primary TD:10-Joo-13 10896:72 I 10700.002 -68552 1211.76 28093500 2401680.00 6034'05.956"N )si`13'03.645"W point Si R1 E1 PROGRAM Ref Wellbore:KL#1-4 Ref WeN the ICL#I-4 Version#2 Start MI) End MD l Positional Uncertainty Model LogName/Comment I Wellbore Iftl IA) I F _ 20.80 3003.17NaviTrak(MagCorr) I .1,8-1-4 3003.17' 9496.72OnTrak orr) �. _ #14._____... I 9496.72 10896.72!OnTrak(MagCorr) IKL 81-4 • 1110 BUCCANEER ALASKA OPERATIONS LLC Kenai Loop #1-4 Cementing 10 3/4"Surface Casing: 1. Prior to cementing casing: • Check cement lab test for sufficient pumping time,free water and fluid loss. • Discuss job with cementer and customer,double checking calculations for water,displacement,etc. • Verify all hoses and lines are in good shape and on site. Have extra hoses and high pressure pump iron available. • Confirm plugs are loaded into cement head. • Ensure that 10 3/4"circulating swage is on location prior to running casing. Cement the casing as follows: Immediately prior to shutting the pumps down record and report the pump pressure ON A RATE/TIME/PRESSURE basis ±5-10 minutes. Hold pressure for 1 minute. Bleed pressure down to 0 psi.and pull out of tool. Load wiper plug into drill pipe and pump with rig with total displacement plus 5 bbls.to clean drill pipe. Spacer: 5 BBL Use Fresh Water to pressure test cementing iron Spacer: 24 BB L Seal Bond,8.5 ppg.Red dye added _ Drop bottom plug. Lead Cement 1145 sacks Type I Cement+Additives,13.5 ppg. Open Hole Excess 100% • Tail Cement 200 sacks Type 1 Cement+Additives,14.8 ppg. Open Hole Excess 100% Drop top plug. Displacement Spacer: 5 BBL Use fresh water to kick out top plug Displacement Mud: 390 BBL 8.3 ppg WBM—390 BBL Total Displacement Estimated Top Cement Lead Surface Tail 2663' PROPERTIES LEAD Tail Weight 13.5 14.8 Yield 1.68 1.33 Water 8.82 6.321 Pump time 4:00 3:36 Water Loss 553 388 Free Water 0 0 Compressive Strength 8 hours 236 468 12 hours 401 1000 24 hours 751 2042 48 hours 1043 3120 Note: The final slurry design will be provided after testing cement,additive and mix water samples prior to performing the job. 2. After Cementing,record the following: • Time cement in place • Pressure used to displace. • RATE/TIME/PRESSURE after slowing down in anticipation of bumping plug. • Amount of barrels pumped behind cement. • Amount of barrels bled back to check floats. • When and if returns were lost while cementing. • Amount of cement(in barrels)circulated to surface. 111 • Cementing 7 5/8"Intermediate Casing: 1. Prior to cementing casing: • Check cement lab test for sufficient pumping time,free water and fluid loss. • Discuss job with cementer and customer,double checking calculations for water,displacement,etc. • Verify all hoses and lines are in good shape and on site. Have extra hoses and high pressure pump iron available. • Verify that wiper plugs are loaded in cementing plug assembly. • Drift casing prior to running. • Ensure that 7 5/8"circulating swage is on location prior to running casing. Cement the casing as follows: Bump the plug with 500 psi over circulating pressure.Immediately prior to shutting the pumps down record and report the pump pressure ON A RATE/TIME/PRESSURE basis +5-10 minutes. Hold pressure for 5 minutes. Release the pressure and confirm the floats are holding. Do not over displace by more than half of the shoe volume. Spacer: 5 BBL Use Fresh Water to pressure test cementing iron Spacer: 30 BBL 10.3 ppg Seal Bond Spacer Drop Bottom Plug Lead: 1192 sx "G"Cement+Additives ppg - (15.8 ppg) Excess 40% Drop Top Plug Displacement Spacer: 5 BBL 1 Use fresh water to drop Top Rubber Plug Displacement Mud: 432 BBL 9.3 ppg WBM.Reduce pump rate to 3 bpm to land plug. 392 bbl total displacement Estimated Top Cement Lead 5000' PROPERTIES LEAD Weight 15.8 Yield 1.15 _ Water 4.92 Pump time Water Loss 56 Free Water 0 Compressive Strength 6 hours 500 Estimated strengths. 12 hours 1887 24 hours 2947 48 hours 3796 Note: The final slurry design will be provided after testing cement,additive and mix water samples prior to performing the job. 2. After Cementing,record the following: • Time cement in place • Pressure used to displace. • RATE/TIME/PRESSURE after slowing down in anticipation of bumping plug. • Amount of barrels pumped behind cement. • Amount of barrels bled back to check floats. • When and if returns were lost while cementing. Cementing 4!:"Production Liner: 1. Prior to cementing casing: • Check cement lab test for sufficient pumping time,free water and fluid loss. • Discuss job with cementer and customer,double checking calculations for water,displacement,etc. • Verify all hoses and lines are in good shape and on site. Have extra hoses and high pressure pump iron available. • Verify calculations and plugs with liner tool hand. • Drift casing prior to running. • Ensure that 4 1/2"circulating swage is on location prior to running casing. Cement the casing as follows: Bump the plug with 500 psi over circulating pressure.Immediately prior to shutting the pumps down record and report the pump pressure ON A RATE/TIME/PRESSURE basis +5-10 minutes. Hold pressure for 5 minutes. Release the pressure and confirm the floats are holding. Do not over displace by mare than half of the shoe volume. Spacer: 5 BBL Use Fresh Water to pressure test cementing iron Spacer: 40 BBL 11.0 ppg Seal Bond Spacer Lead: 261 sx "G"Cement+Additives ppg - (15.8 ppg) Excess 40% _ Drop drill pipe wiper plug. Displacement Spacer: 5 BBL Use fresh water to drop liner wiper. Displacement Mud: 169 Displacement Mud: 169BBL Water based mud.Reduce pump rate to 3 bpm to land plug. 169 bbl total displacement. Set packer if required as specified by liner tool hand. Estimated Top Cement Lead 9246 Pull out of packer,reverse out. PROPERTIES LEAD Weight 15.8 Yield 1.18 Water 4.926 Pump time Water Loss 48 Free Water 0 Compressive Strength 5 hours Na 12 hours Na 24 hours Na _ 48 hours 3802 Note: The final slurry design will be provided after testing cement,additive and mix water samples prior to performing the job. 2. After Cementing,record the following: • Time cement in place • Pressure used to displace. • RATE/TIME/PRESSURE after slowing down in anticipation of bumping plug. • Amount of barrels pumped behind cement. • Amount of barrels bled back to check floats. • When and if returns were lost while cementing. • • 41•6 GE Oil & Gas a 0 I..' 2-t,b-,t,-, 11 0 . i ,f/ , a �• i ��\ �1 gyn0'tOM VIII 1.) s7.1- U 01 mil ` 1� 4jj. 4® ) _U gow -1 . li - e / NE , 1a ill — i a �� 0 . 2■■,.16-5„ p I 1 r f ,:758'Casing IM`Ceeral Ltee lir Control llne 2-vr Tybp+g This drawing is the property of GE Oil&Gas Pressure Control LP and is considered confidential.Unless otherwise approved in writing, BUCCANEER ALASKA neither n nor its contents may be usedcopied,transmitted or reproduced except for the sole purpose of GE Oil&Gas Pressure Control LP. KE NAS LOOP .£. 10-314" x 7-5/8" x 2-7/8t' 10M SH2 Wellhead Assembly DRAWN CR 10NOV12 With M40-CCL Tubing HangerAdaptery and Flange APP RF KN 10NOV12 FOR REFERENCE ONLY DRAWING NO. AE21709-C • 0 Glacier 1 Diverter Flow line memommos 21 114"2M Diverter _, 16"Automatic Knife Valve immummumin -- • II r Diverter Spool oi, IIIIIIIIII ............... \ ill ammiummomi 16" Diverter Line • i BUCCANEER GLACIER 11" 10M BOP STACK t �► ANNULAR 41,5"TALL . 11" 5M SHAFFER SPHERICAL 9,550# Astammtiorc ADAPTER SPOOL 18"TALL 11" 10M X 11" SM Mb Mb Mk DOUBLE GATE 41" TALL rct ' DRESSED W/PIPE RAMSZ 7 - 5 VB/r- 11" 10M SNAPPER SL (.1 11, 720# DRESSED W/BLIND RAMS DRLG SP 24"TALL mom SINGLE GATE 23.5"TALL crif WINS DRESSED W/PIPE RAMS 5"" 11" 10M SHAFFER SL ' 7,490# DOUBLE AND SINGLE GATE BOPS MEASURE 123", END TO END TOTAL STACK HEIGHT MEASURES 148" PIPE RAMS are to be dressed initially with 2 7/8" x 5" variable, BLIND RAMS—5" NOTE: Full opening safety valve and inside BOP for drill pipe in use to be kept on rig floor at easy access at all times(2 EA). Test BOP's, choke manifold, Hydril, kelly cock, FOSV, and IBOP, rotary hose and standpipe valve to BOP rated working pressure when installed, at least every 7 days thereafter, and at each break. Work BOP's and flush choke lines each trip. Tighten BOP and wellhead bolts every three-(3) days. Test pressure and minimum WP of BOP equipment below surface casing should be 5,000 psi or as programmed. Full opening safety valve to be run on bottom of kelly at all times. Verify closing pressures meet specifications: Accumulator pressure- ±3000 psi Manfold pressure for rams- ±1500 psi Annular closing pressure- ±700 psi __ - • 0 ici 0 • U 2 f 04 0 Q 3 U 0 Z • • .0!" 4.%. • • t a.. t t :. 1 1 t • 1 •4 tcc co I- illimmi %0 ' . - - 00 4 /:ICI 1:1)3 0 1:.'. 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I will need updated actual schematics as soon as you have them available.A 4 ram stack is needed since MASP>3000 psi (1 annular+3 pipe). I will assume they will be very similar to the generic drawing you forwarded for the time being. If they are rentals make sure the certifications are available. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Stephen Hennigan [ iltoahr qan@peiinc.cc ] Sent: Thursday, July 11, 2013 12:11 PM To: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Cc: 'Pete Berga'; 'Steve Ward'; 'Pete Dickinson' Subject: RE: Kenai Loop 1-4: Planned Mud Program Attached are the schematics of the BON stack and choke manifold which have conventionally been used on the Glacier rig. We would appreciate your consideration allowing Buccaneer to utilize a 5k stack on the KL#1-4 well. nate Project Manager/Engineer PETROLEUM 7 ENGINEERS, INC. A Hai• 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Schwartz, Guy L(DOA) [ iailto:guy.schwartz@alaska.gov] Sent: Thursday, July 11, 2013 1:37 PM To: Stephen Hennigan; Davies, Stephen F (DOA) Cc: Pete Berga; Steve Ward; Pete Dickinson Subject: RE: Kenai Loop 1-4: Planned Mud Program 1 Did I understand you are proposing aerent BOP stack than the 10K 11" BOP Ike PTD? IF so I have not seen any info on it. The MASP is under 5000 psi so a 5K stack would be allowed. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Stephen Hennigan [mailta:shennigan@lpeiinc.cc ] Sent: Thursday, July 11, 2013 10:23 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L(DOA); Pete Berga; Steve Ward; Pete Dickinson Subject: RE: Kenai Loop 1-4: Planned Mud Program Buccaneer has reviewed the pore pressure and instances of well control on the Kenai Loop pad several times. The test information and MDT's from KL#1-2 and#1-3 indicated that the zones of interest(9700'sd and 10000' sd)are normal pressure (or near normal). The well control occurrence on KL#1 (KL#1-1) @ 9720'MD 6:00 10:30 DrIg 6 3/4"hole f/9593 to 9720-Start raising mud weight to 10.4 Cir btms up,gas units went to 2050 units&back to 100 units-Check well for flow(it was 10:30 11:00 flowing) 11:00 15:30 Cir w/1 pump at slow pump rate thru gas buster,build mw to 10.6&cir out gas bubbles 15:30 17:30 Cir w/2 pumps 10.6 mw thru gas buster,all the way around. 17:30 20:00 Cir w/3 pumps thru gas buster,build mw to 10.8 20:00 2:30 Cir w/3 pumps,build mw to 11.+work out air and gas out of mud system 11.+in 10.9 out 2:30 5:30 Cir and build mw T/11.2 Later review with Mr. Berga we figured out that we had some drill gas and Kelly cut on the backside and it "probably" was not a true indicative kick had things been addressed differently. (BHP info agrees). So on KL#3 (KL#1-2) we programmed for the mud weight as used on the KL#1-1, and changed the way we monitored drill breaks and Kelly cut on the backside. The formation flow tests confirmed we were in normal pressure. On KL#1-3, we drilled to 12472'TVD with a 10.2 ppg mud (BHP gauges in the well test confirmed normal pressure). Based upon lessons learned and the well data from the near offset wells,we proposed a mud weight in the 10-10.2 ppg range be used below intermediate casing on the KL#1-4. Casing and wellhead design will remain unchanged, but we would like to propose using 5k NOPe. If there is any additional information needed or a more formal explanation, please let us know. RAINk Project Manager/Engineer PETROLEUM ENGINEERS, INC. Cornpa 2 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Davies, Stephen F (DOA) [ e.daviespalaska.gov] Sent: Wednesday, July 03, 2013 6:26 PM To: Stephen Hennigan Cc: Bettis, Patricia K(DOA); Schwartz, Guy L (DOA) Subject: Kenai Loop 1-4: Planned Mud Program Steve, I am reviewing the mud program for proposed well KL 1-4 in comparison with offset wells. Could you please review and justify the planned program taking into account the mud weights used in KL 1-1 (formerly known as KL 1)? That well took a kick while drilling with 10.3 ppg mud, and it took 11.3 ppg mud to control the well. Thanks, and have a Happy July 4`h! Steve Davies AOGCC 907-793-1224 3 Davies, Stephen F (DOA) From: Stephen Hennigan [shennigan@peiinc.com] Sent: Thursday, July 11, 2013 10:23 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA); Pete Berga; Steve Ward; Pete Dickinson Subject: RE: Kenai Loop 1-4: Planned Mud Program Buccaneer has reviewed the pore pressure and instances of well control on the Kenai Loop pad several times. The test information and MDT's from KL#1-2 and #1-3 indicated that the zones of interest(9700'sd and 10000' sd) are normal pressure (or near normal). The well control occurrence on KL#1 (KL#1-1) @ 9720'MD 6:00 10:30 DrIg 6 3/4"hole f/9593 to 9720-Start raising mud weight to 10.4 Cir btms up,gas units went to 2050 units&back to 100 units-Check well for flow(it was 10:30 11:00 flowing) 11:00 15:30 Cir w/1 pump at slow pump rate thru gas buster,build mw to 10.6&cir out gas bubbles 15:30 17:30 Cir w/2 pumps 10.6 mw thru gas buster,all the way around. 17:30 20:00 Cir w/3 pumps thru gas buster, build mw to 10.8 20:00 2:30 Cir w/3 pumps, build mw to 11.+work out air and gas out of mud system 11.+in 10.9 out 2:30 5:30 Cir and build mw T/11.2 Later review with Mr. Berga we figured out that we had some drill gas and Kelly cut on the backside and it "probably" was not a true indicative kick had things been addressed differently. (BHP info agrees). So on KL#3 (KL#1-2) we programmed for the mud weight as used on the KL#1-1, and changed the way we monitored drill breaks and Kelly cut on the backside. The formation flow tests confirmed we were in normal pressure. On KL#1-3, we drilled to 12472'TVD with a 10.2 ppg mud (BHP gauges in the well test confirmed normal pressure). Based upon lessons learned and the well data from the near offset wells, we proposed a mud weight in the 10-10.2 ppg range be used below intermediate casing on the KL#1-4. Casing and wellhead design will remain unchanged, but we would like to propose using 5k NOPe. If there is any additional information needed or a more formal explanation, please let us know. aide Project Manager/Engineer PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Davies, Stephen F (DOA) [mailto:steve.daviesPalaska.gov] Sent: Wednesday, July 03, 2013 6:26 PM 1 To: Stephen Hennigan • Cc: Bettis, Patricia K (DOA); Schwartz, Guy L (DOA) Subject: Kenai Loop 1-4: Planned Mud Program Steve, I am reviewing the mud program for proposed well KL 1-4 in comparison with offset wells. Could you please review and justify the planned program taking into account the mud weights used in KL 1-1 (formerly known as KL 1)? That well took a kick while drilling with 10.3 ppg mud, and it took 11.3 ppg mud to control the well. Thanks, and have a Happy July 4th! Steve Davies AOGCC 907-793-1224 2 Schwartz, Guy L (DOA) From: Stephen Hennigan <shennigan@peiinc.com> Sent: Thursday, July 11, 2013 10:09 AM To: Schwartz, Guy L (DOA) Cc: Steve Ward Subject: RE: Kenai Loop 1-4 (PTD 213-091) There is an industrial park under construction C s, aiew7/s, e Project Manager/Engineer PETROLEUM 7 ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Schwartz, Guy L (DOA) [ ilto:auv.schwartz@alaska.gov] Sent: Thursday, July 11, 2013 1:08 PM To: Stephen Hennigan Subject: RE: Kenai Loop 1-4 (PTD 213-091) Steve, Why not turn diverter 180 degrees and point it NW off pad? Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Stephen Hennigan [m.>iltr).r!-Pnnigan@peiinc.com] Sent: Thursday, July 11, 2013 10:02 AM To: Schwartz, Guy L (DOA) Cc: Steve Ward; Pete Berga Subject: RE: Kenai Loop 1-4 (PTD 213-091) We will be moving the methanol skid building. Moving the camp traitors,etc below that to a slightly different location The diverter area will be flagged so that no walking, equipment movement, etc will occur in the area of the end of the diverter line for±75'while drilling on diverter. If there is anything else, please let me know. 1 • Aide Project Manager/Engineer PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Schwartz, Guy L (DOA) [ ry.schwartz@alaska.gov-j Sent: Tuesday, July 09, 2013 2:23 PM To: Stephen Hennigan Subject: Kenai Loop 1-4 (PTD 213-091) Steve, Can I get an as built of the Glacier rig on site with the diverter routing shown? Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office 2 , •__________ • ....„ 4.-LIN i__ NORTH CITY OF KENAI Q�''' `• 1=1 „ KENAI INDUSTRIAL G°rs SCALE PARK SUBDIVISION 100 200 UNDER DEVELOPMENT FEET SEC 33 T6N R11 W I 4 gi ._�I ACCESS ROAD S ❑( c;;50:01 �\ GLACIER 1,1, * , 0.1‹._______ RIG MARATHON ROAD 390 o 1RN Vis;, \ AS-S 1AKED � � KL NO. 1-4 BUCCANEER p WELL KENAI LOOP PAD `�� r4vd� Ba...Q. KL NO.1 (gG `X7 /" ® ®WELL WELL s� i \\ KL NO.2 KL NO.4 ` METHANOL FLARE �n SKID BLDG. HEAT RAD I yp i it 1 1 o''.44 I It -- --7 i �, 1 L 93-._._7, IagiviA�Efa o _ _ _'s � 1 7 � LJ KILLLIIV IJ l./11VIt '11 �_. _/ . /-\ 1� HEATER BLDG. WATER 1�1 10'X25 TANK V / GLYCOL BLDG. CONDENSATE (- TANK O 93 1 9N1 � 1 !II SEPARATORsaD \ } I DIA FIL FRI 7 CONDUIT RACK I,{I T'�gli5 i �— 93, CITY OF KENAI \\..1,„, BARON PARK SUBD. -, OF,g,'1, ,'1,1 2012 ADDN. KN 2012-89 �; '7 Ie L 1' . STAN A. McLANE r III ,,,' 4637—S•..6/21 X13... BUCCANEER ALASKA, LLC PROJECT REVISION. 2 952 ECHO LANE DATE: 6/21/13 mar KENAI LOOP NO. 1-4 WELL DRAWN BY: MSM SUITE 420 GLACIER RIG DIVERTER LINE DETAIL SCALE: 1°=100 RUcc*,WIt HOUSTON, TX 77024 PROJECT NO. 133041 BOOK NO. - ENGINEERING/MAPPING/SURVEYING/TESTING ConsuLting Inc P.O.BOX 468 SOLDOTNA,AK.99669 LOCATION SEC. 33 T6N R11W SHEET VOICE:(907)283-4218 FAX:(907)283-3265 Md- EMAIL:SAMCLANE@MCLANECG.COM SEWARD MERIDIAN, ALASKA 1 OF 1 • 0 • Glacier 1 BOP Stack Flow Nipple --__ _ __ Fc . _r< 13 5/8"5M Annula, b. Preventer I � <I 13 5/8"5M Double ( Pipe Ram 2 7/8"x 5"variable Ram Preventer Blind 2 1/16'5M Blind Ram Check Valve 2 1116"5M Manually 3 118 SM Manually Operated Valves > Operated Valve �— --_ — - - X KiW Chof;- j7,1 �{ --- X __- — — - �. =-__— — _,E 13 5/8"5M Cross 3 1/8"5M Hydraulically 5" pipe . Pipe Ram . Operated Valve 13 5/8"5hr1 Single 1�. -. ,� Bottom of Single gate must be Ram Preventer 4milii 24-45"from ground level for -... ....- Glacier 1 rig placement- . 13 5/8"5M x 13 5/8"5M milimommion Drilling Spool 1111111111111111111/A'------..„`---- 11"5M x 13 5/8"5M DSA c flA 5.- AC'K- 7jam r /1 i t Glacier 1 Choke Manifold To Gas Buster To Blooey Line Bleed off Line to Shakers - moms - rlik Wir AITIF ATIlkNIP momu I. 1 . 11 II II II II II CCC ood' — — DOC O00 — — QQ O $ C°a _ �o — _ Ii II II 1I II I I` II II II I II r I ill I-I �� /'1 © it II MINu � n px miiiiiima MM. VP © iMEM IILOIII iit• it o II__IIL• Ii \ 7 I I 3" 5M ValvesCO T 1 2 9/16" 10M Swaco 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke Gauge Block Choke Hose to HCR e (from BOP Stack) 0 -6,000 psi Choke Control Pressure Gauge Pressure Sensor • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, July 03, 2013 3:26 PM To: 'Stephen Hennigan' Cc: Bettis, Patricia K(DOA); Schwartz, Guy L (DOA) Subject: Kenai Loop 1-4: Planned Mud Program Steve, I am reviewing the mud program for proposed well KL 1-4 in comparison with offset wells. Could you please review and justify the planned program taking into account the mud weights used in KL 1-1 (formerly known as KL 1)? That well took a kick while drilling with 10.3 ppg mud, and it took 11.3 ppg mud to control the well. Thanks, and have a Happy July 4th! Steve Davies AOGCC 907-793-1224 1 • Competitive Oil&Gas Lease MHT Form No.004 (Revised 12/10) The Alaska Mental Health Trust Authority Trust Land Office COMPETITIVE OIL AND GAS LEASE MHT No. 9300082 THIS COMPETITIVE OIL AND GAS LEASE ("Lease') is made effective as of 42-,_, j , 2011, by and among THE ALASKA MENTAL HEALTH TRUST AUTHORITY "Trust Authority'),a public corporation within the Alaska Department of Revenue(AS 47.30.011 et seq.), acting by and through the State of Alaska, Department of Natural Resources,Trust Land Office("TLO"), pursuant to AS 37.14.009, AS 38.05.801 and 11 AAC 99 (the Trust Authority and the TLO are collectively referred to as"Lessor") and Buccaneer Alaska, LLC("Lessee"). The Trust Land Office,on behalf of the Trust Authority has determined under a Trust benefit analysis that for and in consideration of the cash payment made by Lessee to Lessor which includes the first year's rental and any required cash bonus and the other performance to be rendered by Lessee hereunder, it is in the best interests of the beneficiaries of the Alaska Mental Health Trust that the following described tract of land ("Leased Area")be leased to Lessee, and Lessee desires to lease the Leased Area for the purposes, and on the terms and conditions as hereinafter set out including applicable mitigating measures attached to this Lease and incorporated herein. AGREEMENT NOW THEREFORE, in consideration of the mutual covenants as hereinafter set out, Lessor and Lessee enter into this Lease upon the following terms and conditions: 1. Grant. (a) Grant of Lease. (1) Lessor does hereby lease,let and demise to Lessee for the term as set out in Paragraph 2 hereof WITHOUT WARRANTY the exclusive right to drill for, extract, remove, save, clean, process,and dispose of all oil, gas and associated substances in and under the following described tract of land: Tract 48 (see attached Exhibit A) containing 1,267.60 acres, more or less, subject to the royalty interest reserved under Paragraph 4 hereof; together with the nonexclusive right to conduct within the Leased Area geological and geophysical exploration for oil, gas and associated substances; and the nonexclusive right to install pipelines and build structures on the Leased Area to find, produce, save, store,treat, process, transport,take care of, and market all oil, gas, and associated substances and to house and board employees in its operations on the Leased Area subject to all the terms and conditions hereof. The rights granted by this Lease are to be exercised in a manner which will not unreasonably interfere with the rights of any other Page 1 • • EXHIBIT A, MHT 9300082 I 008N 012W - •.-., 0171 I ti cO i' 1 t `2 i Or 11In lin . , . . ... .. , _, i. -.,.: .„,,,, , 2W. keiai';# 1 ' 'TRACT 48 Oil&GAS ONLY Parcel Section Parcel Description Acreage T.005 N.,R.012 W.,SEWARD MERIDIAN,ALASKA SM-0982 1 SECTION 1:LOT 2; 2.50 SM-0983 1 SECTION 1:LOT 3; 3.62 SM-0984 1 SECTION 1:LOT 4; 3.15 SM-0985 1 SECTION 1:LOT 5; 1.96 SM-0986 1 SECTION 1:LOT 6; 2.35 T.006 N.,R.011 W.,SEWARD MERIDIAN,ALASKA S50217 28 SECTION28: W1/2; 320.00 SM-0997-B 29 SECTION 29:E1I2NE1/4,SWI/4NE1/4; 120.00 550218 29 SECTION29:SEI/4; 160.00 550219 29 SECTION29:SW1/4; 160.00 S50220 31 SECTION 31:LOT I; 36.94 550221 31 SECTION 31:LOT 2; 37.08 S50222 31 SECTION31:E1I2NW1/4; 80.00 550223 33 SECTION 33: W1/2; 320.00 SM-1024 33 SECTION 33:W1/2SW1/4SE1/4; 20.00 TOTAL TRACT 48 ACREAGE 1267.60 i I Davies, Stephen F (DOA) From: Mark Landt[mlandt@buccaneerenergy.com] Sent: Wednesday, July 03, 2013 9:56 AM To: Davies, Stephen F (DOA) Subject: Re: Kenai Loop No. 1-4 Permit to Drill Application and Spacing Exception Application Steve, I don't think MHT keeps their leases up to date. When I get back to my computer I will send you a copy of the description and plat from the lease.Thanks, Mark R Landt (214) 738-6945 On Jul 3, 2013, at 12:52 PM, "Davies, Stephen F (DOA)" <steve.davies@alaska.gov> wrote: Mark, You're welcome. I always admit my mistakes. Say, could you do me a favor. I'm trying to verify the MHT lease number 9300082 on the Permit to Drill application, and when I look that number up on the AK DNR's Land Administrations Case File site at http://dnr.alaska.gov/projects/las/Case Abstract.cfm, I get the message: "No Case information found". I tried adding an extra zero (MHT 93000082), but received the same error message. You can find MHT case information on this site (try typing in File type: MHT and File Number: 9300028). I tried looking it up on DNR's land plats, but found nothing other than a general indication that the western half of Section 33 is designated as MHT land. Thanks for your help. Steve Davies AOGCC From: Mark Landt [mailto:mlandt©buccaneerenergy.com] Sent: Tuesday, July 02, 2013 5:23 PM To: Davies, Stephen F (DOA) Cc: Stephen Hennigan; Schwartz, Guy L (DOA); Colombie, Jody J (DOA) Subject: Re: Kenai Loop No. 1-4 Permit to Drill Application and Spacing Exception Application Steve,Thanks for the clarity. Mark R Landt (214) 738-6945 On Jul 2, 2013, at 7:54 PM, "Davies, Stephen F(DOA)" <steve.davies@alaska.gov>wrote: Mark, Your phone message is correct, the Spacing Exception application for Kenai Loop No. 1-4 does not need to be redone. I incorrectly used the bottom-hole location footages from the Permit to Drill application as I was drafting the Notice for Spacing Exception. 1 • Please accept my apologies. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 From: Davies, Stephen F (DOA) Sent: Tuesday, July 02, 2013 3:39 PM To: 'Stephen Hennigan'; 'Mark Landt' Cc: Schwartz, Guy L (DOA); Colombie, Jody J (DOA) Subject: Kenai Loop No. 1-4 Permit to Drill Application and Spacing Exception Application Steve and Mark, Because of the location corrections for Kenai Loop No. 1-4, Buccaneer should resubmit both the Permit to Drill application (Form 10-401) and the Spacing Exception application. On the Permit to Drill application form, please include corrected values for the footages for surface hole location, top of productive horizon, and bottom hole location; KB elevation; ground level elevation; maximum surface pressure; and downhole pressure. Please redo the Spacing Exception application with the correct footages for surface hole location, top of productive horizon, and bottom hole location. Follow all application requirements specified in 20 AAC 25.055. Thanks for your help, Steve Davies AOGCC 907-793-1224 2 • Colombie, Jody J (DOA) From: Stephen Hennigan <shennigan@peiinc.com> Sent: Tuesday, July 02, 2013 1:02 PM To: Davies, Stephen F (DOA) Cc: Mark Landt; Colombie, Jody J (DOA) Subject: FW: Kenai Loop 1-4: Spacing Exception Question Yes there is a slight difference— we would like to modify our 10-401 lease line calls to reflect what has been requested in the spacing exception application. They are: 4a. Location of Well(Governmental Section): Surface: 1765' FNL&1254'FWL Sec 33 6n 11w 4 Top of Productive Horizon: 2445'FNL&2446'FWL Sec 33 6n 11w 4 Total Depth: 2445'FNL&2446'FWL Sec 33 6n 11w 4 We will also make a note of the change in our drilling plan. The directional in the application for PTD will not change as it is based upon x,y's which are the same as in the permit plat and the G&G spacing calculation. If we need to do anything else to expedite, please let us know. Tiade Project Manager/Engineer PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Mark Landt [mailto:mlandt(abuccaneerenergy.com] Sent: Monday, July 01, 2013 6:02 PM To: Steve Hennigan Subject: Fwd: Kenai Loop 1-4: Spacing Exception Question Steve, I think there were slight differences for whatever reason. I would suggest we keep the location for the spacing exception the same and change the drilling permit. Mark R Landt 1 • i Davies, Stephen F (DOA) From: Stephen Hennigan [shennigan@peiinc.com] Sent: Saturday, June 29, 2013 7:01 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA) Subject: RE: Buccaneer KL#1-4 Attachments: KL#3 MDT SUMMARY.PDF Additional information on pressures from the KL 3 (KI 1-2) Roar Project Manager/Engineer PETROLEUM 17 ENGINEERS, INC. 500 Dover Boulevard, Suite 310 Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Stephen Hennigan [mailto:shennigan@peiinc.com] Sent: Friday, June 28, 2013 12:31 PM To: 'Davies, Stephen F (DOA)' Cc: 'Schwartz, Guy L (DOA)' Subject: RE: Buccaneer KL #1-4 Based upon the KL#4 (new name KL#1-3) The maximum mud wt used thru the equivalent interval was 10.2ppg--Downhole buildup with gauge at 10250' TVD was maximum of 4783 psi (8.975 ppge). So I used 9.0ppg as the pore pressure. 4783-.1 psi/ft GG yields the approximate MASP on the permit Based upon the dry hole KL#3 (new name KL#1-2)- We could barely get water to surface. I will get the well test data to confirm it for you. Based upon KL#1 MASP would be higher than proposed. 9.0 ppge formation pressure was chosen just BASED upon Buccaneer data—However, casing design is the same as programmed for a higher than 10.2-10.3 ppge BHP 1 • • nab c5ftefriedr '5-fte.94,1041.6" Project Manager/Engineer PETROLEUM -7 ENGINEERS, INC. 500 Dover Boulevard, Suite 310 l Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, June 27, 2013 2:50 PM To: Stephen Hennigan Cc: Schwartz, Guy L (DOA) Subject: RE: Buccaneer KL #1-4 Steve, On the Permit to Drill application form,the maximum anticipated pressures are incorrectly listed as: Downhole 3938 psig Surface 5675 psig Please provide corrected values. Thanks, Steve Davies AOGCC From: Stephen Hennigan [mailto:shennigan©peiinc.com] Sent: Thursday, June 27, 2013 11:29 AM To: Davies, Stephen F (DOA) Subject: RE: Buccaneer KL #1-4 The Baker Hughes#is MOST correct 10.KB Elev above MSL: 113 feet GL Elev above MSL- 93 feet Ault c5ftefrieff 7/(.5D20-€1 " Project Manager/Engineer 2 4110 4110 PETROLEUM 7 ENGINEERS, INC.~"�� 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Davies, Stephen F (DOA) [mailto:steve.davies©alaska.gov] Sent: Thursday, June 27, 2013 2:24 PM To: Stephen Hennigan Subject: RE: Buccaneer KL #1-4 Steve, What is the best estimate for the height of the KB above sea level and the elevation of ground surface above sea level for the planned Kenai Loop 1-4 well? Buccaneer's Permit to Drill application for lists the KB elevation as 215.5' above mean sea level (MSL), with a ground elevation of9Z.3' MSL. (This means that the rig floor will be–123' above ground surface—not likely.) Baker-Hughes' directional survey lists the elevation of the rotary table as being 113.3' MSL. McLane's As-Staked survey plat lists an elevation of 133.96' Thanks, Steve Davies AOGCC From: Stephen Honnigan [mai|to:shennigan@peiinc.com] Sent: Thursday, June 27, 2013 10:42 AM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA) Subject: Buccaneer KL #1-4 I talked with Steve Ward today at Buccaneer. He is targeting July 8, 2013 for spudding. Are there any engineering/mechanical topics we need to address in the permit application? nob ate/taedt Project Manager/Engineer �� U�� . ~~ . ~~�~~~~�,_~~~ 7 ENGINEERS, INC. �mu�/oom�mm�omx 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office. 337-984-2603 Mobile: 337-849-5345 3 • ! 44 44 51° ' ' ? MDT LONG_Sc reer ' ' ' � File Edit Display Annotate View Helpy {� p� R ® ( f1S 4j... \ `i [7] A q 7r `.# . `�'' . . ,� : 4�7 1 Helvetic rty Ker.3 P r tr €s E�ar� r e, 7 8 �2 - = ": 2 n7 0 21.7, g 5 n Flux. } 3(s .fid -n * C! a a o 7. b �� '6 o A. _c n F. 0, S-a .le{:3[Aa'r. 2' 4 FE_''34 FWL - fD 3 ' m iv > S 3 .' ,, +�i' n, 0 i a . F fti,�^ _ so f , - • "W • - T • F ® n. ' Wel': Ksrv31 Loop*3 4,1 i. 3 o_ a s C=mac,ary EU ,^,3r__.Alasy:3 OFer3t L `C LaC.ATION .1 b 0,.) r = oa K.3 R " . . 0 0 0 1wgr� �, a ooao ... -=. o�o � : - - a a 3 ",C " �J £i - a o � v r }-'S a `o' '' "t", o.a o _= ;;3 S9 2 o 2 7 — a , s s 2 us > 3 .� + .a 2 3 W " l 2 3 3 3 2 a - ' � ' , , AI "ryar ., I.,. I p► o 0) 0 n 0 CC. .. r NEG C o MI iCr i r Co 3 7 _ )UD s-T S S 0E-4 4 44 a, ''R.2 2l m4. "' xS 3 as , -in ` 3 " 3e -i� 4' T sl. ',P._, Or 'n ,.1t n ` § RS a. Int 0` i -4 S 1 _ie'4 2)11E rr r c2n 2' — G PDS x1043y:328181 IW 826 File Complete 41111 • '- r. , • ,' „ , ,,, ,,iiiligiPrAr'• -•,, :i 'S*,,,.-, - 1..0 •.'. 4, MDT LONG - S4:.hi u m berg er PDS if,'ew „-pitie,: .:1w,gmiiio4,404, , '. .., oolvvi! *,,,,,,4-,: .4);44 .., ° File Edit Display Annotate Vievv Help Hel..Et,. i ..... . .. ... . . . . .. . . . . ..___.......... „. .. __„„,...„,....„,,„,„_„,, . . . ......_.... EA i I t i SAMPLE SUMMARY *******k****k****************A***Ok*Ik*******k**k*A********k************ Sample Point 1 MD Depth: 10945 TVD depth: 10583.7 File No: 74 Form. Press. : 4749.6 Form. Temp. : 165 —.,,• A.p,e,.: ii.vci.to. : 6456 Chamber SiN Pump Vol Pump Time MRMS1 slot 6 681 11.5 110 • Remarks:Gradient as well as LFA in this zone indicates water . Mud in hole is water based and this spot was pumped based on resistivity. Rmf calculated to g . to be 06 at 170 def Sample Point 2 MD Depth: 10650 TVD depth- 10188.7 File No. 85 Form, Press: 4522 Form.Temp.: 163 After Hydro.: 6212 Chamber SiN Pump Vol Pump Time ,,,,,,,,,,,,,, MRMS 1 slot 5 4099 12.3 gal 78 min vi llRemarks. LFA indicates water li Sample Paint 3 MD Depth. 10235 TVD depth: 9873.7 File No: 87 - . a PDS x:1322 y:319673 l\i'l 8.26 File Complete • 0 4MDT LONG-Szt,2um:, e rger PDS:V:ie::17,::::7 File Edit Display Annotate View Help lb , ? Q \ \41, F-7-1 A 1:: # -I. v ..1> v 21 .." ,-L-i, F_-_,'— 5:;13 % Helvetica vi Sample Point 3 it MD Depth: 10235 Lil TVD depth: 9873.7 „.,.. Elle ND: 87 Form Press.. 3463 Form,Temp.: 162 After Hydro.: 6019 Chamber SIN Pump Vol Pump Time MRMS 1 slot 4 1351 7..6 90 MRMS 1 slot 3 4152 7.6 91 Remarks: LFA indicates water-had problems with probe plugging so pump was stop , v ped ll a few times to clear plugging — — ------ — .,. : Client: Buccaneer Alaska Operation LLC Tool: /ARP 1_1- Field: Kenai Loop Probe Type: Large-Diameter probe Weil: Kenai Loop*3 Gauge: OOPRESS_PS1 Run date: Gauge Resolution: 0.010 psi Teat Fd4 Deptr TVD DrusCown 8800 PF666008 Last Toad Formation Test 1994 PitotOly &eon Allot salkt-trp Pm FlilttiTe FT FT 58DOCP PDA PSIA 981A PSIA 40 93 10009.56 9645.29 5852.90 5853.30 Dn9T681 42 94 9794.64 9433.56 5753.00 5752.57 Last Sor 43 95 9757.02 9435.76 5753.62 5753.51 Lost Sea 44 56 9832.09 9470.63 66.09 5775.17 5774.10 1.0st Mg§ I ' 1 , PDS x:576 y:318740 W8.26 File Complete I .... 410 0 MDI,„,LONG , , , ,„„,,,..:4'4 .:11,,r - criturniverger Vti V Wei *'311!!)!,4,4,f,-?.:11,..'_',,,,,;,..4 . , io,,,,,014,-.. -14,„1 ,6.• •,.,1-,-Fr- . '-',,, -____. File Edit Display Annotate View Help Helvetica boiiil ....„..... (r,, 1 T Client: Buccaneer Alaska Operation LLC Tool: taRFS_1- Field Kenai Loop Probe Type: Large-Diameter probe Well: Kenai Loop 45 Gauge: QOPRESS_PSI Run date: Gauge Resolution: 0.010 psi Test Fie Depth TVD Drialimen Mud Pressure Last Teed Formation Test Type litobaty Won Attal botel-up PM PTOSSUre rr rr miceicP PISA PS3A PS1A PIM 1 67 10955.10 10623.51 0.10 5475.52 6475.64 Day Test 3 65 10975.90 10614.63. 6470.49 6471.06 Lost Sell 4 69 19967.05 10625,79 6465.59 6465.51 Dri Test 6 70 10955.02 10593.73 20.32 6451.4-5 6455.62 4753.33 4753.33 voimetinc Lernitert rusw-dicein ie ii 4 71 10945.02 10583.74 96.64 6454.77 6454.64 4749.57 4749.57 Volurnetne Larn/ted Maw-0mm 10 72 10954.91 10573.62 9.35 6447.56 6445.14 4745.39 4745.39 Veaurnetro Lentted draw-down 12 73 10925.00 10563.71 4.25 6441.86 6441.72 4348.94 4710.95 Volusnettts Ltallted dme-Stown 14 74 10944.96 10583.67 7.66 6454.51 6453.72 4749.52 4745.52 Sarno* 16 76 10612.01 10450.72 0.94 6372.62 6372.41 4712.94 4712.84 voherhetric Limited draw-dim 15 17 10705.51 10343.73 0.41 6387.55 6307.50 4693.28 4653.25 Votusnetec LkTetsti draw-deert .* 20 78 10703.86 10342.60 0.95 6306.74 6306,26 4692,42 4691.42 Votionstrie Ltrofts0 0nm-down 21 79 10611.91 10255.63 6250.63 6250.12 Dry Test 23 80 10519.9,6 10188.71 34.39 6213.13 6212.62 4522.79 4522.79 vorwrietne Looted duet-down 25 81 10545.02 10183.74 11.35 6209.49 6209.25 4520.51 4520.51 votioretnic Leretea arse4ceen 27 82 10539.45 10178.66 1.56 6206.30 6206.73 4519.13 4519.13 voneratne LITIrtil dr&W-GC.Wit 29 83 15529.94 10169.67 0.13 6250.20 6200.64 4522.17 4522.17 Volumetric Limited drawatiown s; 31 14 19525.02 15163.74 1.94 6197.14 6197.15 4513.55 4513.65 Mimetic LInetett OfSe-50Wit 32 15 10549.96 10155.65 40.99 6212.61 6211.56 4522.91 4522.91 94mce5 34 17 18235.00 5573.73 42.83 6919.63 6019.65 3463.91 3463.81 votiviestrz undo OTSW-dOlift 35 66 10235.09 9373.73 12.03 6018.95 6018.11 3463.70 3463.70 Sampe 37 90 10265.05 9963.78 1.05 6035.51 6035.79 3476.57 3478.57 Voaumatno Umatail draw•down 39 91 10245.05 9553.75 16.57 6023.50 6023.93 3467.12 3467.12 VOtUalifiTE LertIted dm-down . 11 a I :, PDS x:1611 y316017 iW 8.26 File Complete 1 iii`9 • i 10920-ft (MD) sand - Tyonek 4740 _ 4742 4744 to Q 4746 ai 4748 4750 4752 e y=0.4127x+381.18 4754 4756 f } } l00 l.0 O^ N 00 000 001 ,N1 8 o o o o 0 0 0 o o TVD,ft 10520-ft(MD) sand - Tyonek 4512 4514 .N f° 4516 a 4518 = z '^ 4520 N v 4522 - al.=.._0,34 x+ 02.17 4524 -`- E --+ + L.0 L.0 o ^ N 0 00 rn o o 0 0 0 0 0 TVD,ft 10200-ft(MD) sand - Tyonek 3460 •3465 rtsa ai 3470 z y=0.4929x-1403.9 v 3475 L a 3480 o v1 o V1 o '.r o u1 0 N. 00 00 01 a1 0 0 e--I CO CO CO 00 00 CO rn al al 01 al a1 al al al a1 01 al TVD,ft • . SAMPLE DEPTH 10235 FT MD , "' ra,,''',;7',,,,'3,1 ,% , , ,,ir,icci ,' ...... . 1.,,,iP4 Niii 1-;._ ,''0 0,-'''', MDT LONG -Schoumberger PDSVmw i 041f.iiii,-, a,1 opikArltrokr*O-J 04,1,,,--_, ,J,141'. ,IF-.' J.' - ''''z'q - --.J.'", -‘!--'7, , h4rtIty '.. File Edit Display Annotate view Help j4 ! Helvetica 1,1 i IP t t q , 1 Output DLIS Files DEFAULT MDT_OFA_OHLTP Fr1:27 PRODUCER 3,04ep-2011 1239 I Index: 590188.6 - 688423.6 FT 1 ut 0 74° ./...... '1 0 i..._1 1 3f i ......., ...: ,. 11 Li_vzi.- 11 .Z11C1 .. II 7/3 1. ..1..1... ' .. I CI) ' CL .1 c] --z: i • A''1 M • il co. ,. . • ,,, .I , 4' I 2 = , 17" 0 1440 2880 4320 5760 7200 Elapsed Time (ETIM) (S) 19648 Points Plotted 30-SEP-2011 14:17 St*ST Copal,FT:10215 Se Was fastas Lfnated arra-fatsar-Larizo-D2smotar prob. Ebben...lore Opstatbn LLC ML a Presto's Wats bast Pia, gala az Mut 4'4144U-it inge%Et PUS. San SS 1 ',ff. 1311 . Kemal loop Last b1ted-110 PIVAUTS,PTA: 1443 St . . PDS,x:1597 y:224621 W826 [Fite Complete .,0 i SAMPLE DEPTH 12525 FT MD 0 0 SAMPLE DEPTH 12945 FT MD 0044:«Iiii1L'rr,'„r,c7iN,;„.:141fili';;cir,z. 4„ MDT LONG-Schiumberger PDSViewip:',..liafti, ',..,:4:::!;;;EJ,A File Edit Display Annotate View Help [2v,H1:1, 14 \ \,, EAl 7v , "1 V C4) •• A = --)' !.-E1 C!3 ; Helvetica , , ..... ; ,z;',. a lac 2(03 xa WA sex* SOCC 7050 il Time,sec et-,tete sese6 FV'oe V0hr11¢.10,000 Tots,Pmts.:VOtterAns 10.100 . 1#1RP 4._1- 110.,PRE!t_11'I 1 F11,01,1000,0 010011 Index: 231348.0 - 346298.0 FT i - . ---, : 2 „ .,-. 2co , c) , I 4 U... _ :•;..., . _ 11,1 11, .... ._.- ii, ct NI: 1 0_ r ' 2 0,1 P _40.46............. w.. ......... 1.1 , . . . ' . . . . . . . . . • • • 0 1440 2880 4320 5760 7200 P 1 4. Elapsed Time (ETIM) (S 22991 Points Plotted 30-SEP-2011 8:35 Company.Buccaneer Alaska Operations LLC 11dell:Kenai Loop ft3 Output DLIS Files .fr ;J.., DEFAULT MDT_OFA_074LTP FN:71 PRODUCER 10-Sep-2011 06:40 10545.0 FT x I ,.. 1 PDS x:1519 y:109152 W 826 :File Complete I ,,, , . • • Davies, Stephen F (DOA) From: Stephen Hennigan [shennigan@peiinc.com] Sent: Friday, June 28, 2013 9:31 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA) Subject: RE: Buccaneer KL#1-4 Based upon the KL#4 (new name KL#1-3) The maximum mud wt used thru the equivalent interval was 10.2ppg—Downhole buildup with gauge at 10250'TVD was maximum of 4783 psi (8.975 ppge). So I used 9.0ppg as the pore pressure. 4783-.1 psi/ft GG yields the approximate MASP on the permit Based upon the dry hole KL#3 (new name KL#1-2)- We could barely get water to surface. I will get the well test data to confirm it for you. Based upon KL#1 MASP would be higher than proposed. 9.0 ppge formation pressure was chosen just BASED upon Buccaneer data— However, casing design is the same as programmed for a higher than 10.2-10.3 ppge BHP nob atefrieet v Project Manager/Engineer PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, June 27, 2013 2:50 PM To: Stephen Hennigan Cc: Schwartz, Guy L (DOA) Subject: RE: Buccaneer KL #1-4 Steve, On the Permit to Drill application form, the maximum anticipated pressures are incorrectly listed as: Downhole 3938 psig Surface 5675 psig 1 • • Please provide corrected values. Thanks, Steve Davies AOGCC From: Stephen Hennigan [mailto:shenniganC4eiinc.com] Sent: Thursday, June 27, 2013 11:29 AM To: Davies, Stephen F (DOA) Subject: RE: Buccaneer KL #1-4 The Baker Hughes# is MOST correct 10.KB Elev above MSL: 113 feet GL Elev above MSL: 93 feet rkele c5ftefrieor O ej i Project Manager/Engineer PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, June 27, 2013 2:24 PM To: Stephen Hennigan Subject: RE: Buccaneer KL #1-4 Steve, What is the best estimate for the height of the KB above sea level and the elevation of ground surface above sea level for the planned Kenai Loop 1-4 well? Buccaneer's Permit to Drill application for lists the KB elevation as 215.5' above mean sea level (MSL) , with a ground elevation of 92.3' MSL. (This means that the rig floor will be "123' above ground surface---not likely.) Baker-Hughes' directional survey lists the elevation of the rotary table as being 113.3' MSL. McLane's As-Staked survey plat lists an elevation of 133.96'. Thanks, Steve Davies AOGCC 2 s From: Stephen Hennigan [mailto:shennigan@peiinc.com] Sent: Thursday, June 27, 2013 10:42 AM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA) Subject: Buccaneer KL #1-4 I talked with Steve Ward today at Buccaneer. He is targeting July 8, 2013 for spudding. Are there any engineering/mechanical topics we need to address in the permit application? Ault Project Manager/Engineer _ PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 3 �� Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Thursday, June 27. 2O1311:54AN1 To: 'Stephen Hennigan' Cc: Sohvvartz, Guy L (DOA) Subject: FW: Buccaneer KL#1-4 Steve, Sorry for the flurry of emails, but on "page 3" of your supporting document, in Section 4.4, Formation Evaluation Summary, the Final Hole Size, MD and TVD values are incorrect. Please provide corrected values in an amended Formation Evaluation Summary section. I can insert the corrected page into the application. Thanks, Steve Davies AOGCC From: Davies, Stephen F (DOA) Sent: Thursday, June 27, 2013 11:50 AM To: 'Stephen Hennigan' Cc: Schwartz, Guy L (DOA) Subject: RE: Buccaneer KL #1-4 Steve, On the Permit to Drill application form,the maximum anticipated pressures are incorrectly listed as: Downhole 3938 psig Surface 5675 psig Please provide corrected values. Thanks, Steve Davies AOGCC - - - _ - From: Stephen Hennigan [noai|tm:shennigan(apeiinc.com] Sent: Thursday, June 27, 2013 11:29 AM To: Davies, Stephen F (DOA) Subject: RE: Buccaneer KL #1-4 The Baker Hughes# is MOST correct 1oxoE/ovabove MSL: 113 feet GL EIev above MSL: 93 feet near 1 Project Manager/Engineer °=� PETROLEUM ENGINEERS, INC. �ma,n�ku�[*m�mmy 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984'2603 Mobile: 337-849-5345 From: Davies, Stephen F (DOA) [naiko:steve.davies0bakaoka.guv] Sent: Thursday, June 27, 2013 2:24 PM To: Stephen Hennigan Subject: RE: Buccaneer KL #1-4 Steve, What is the best estimate for the height of the KB above sea level and the elevation of ground surface above sea level for the planned Kenai Loop 1-4 well? Buccaneer's Permit to Drill application for lists the KB elevation as 215.5' above mean sea level (MSL) , with a ground elevation of92.3' MSL. (This means that the rig floor will be—123' above ground surface---not likely.) Baker-Hughes' directional survey lists the elevation of the rotary table as being 113.3' MSL. McLane's As-Staked survey plat lists an elevation of 133.96'. Thanks, Steve Davies AOGCC From: Stephen Hennigan [mailto:shennigan@peiinc.com] Sent: ThursdayJune 27, 2013 10:42 AM To: SchwartzGuy L (DOA) Cc: Davies, Stephen F (DOA) Subject: Buccaneer KL #1-4 I talked with Steve Ward today at Buccaneer. He is targeting July 8, 2013 for spudding. Are there any engineering/mechanical topics we need to address in the permit application? riebrie .942/m0 �� Project Manager/Engineer = ��U �� ~ �� . ~~~_~~~~~_..~ -� ENGINEERS, INC, 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 2 • • Davies, Stephen F (DOA) From: Stephen Hennigan [shennigan@peiinc.com] Sent: Thursday, June 27, 2013 11:29 AM To: Davies, Stephen F (DOA) Subject: RE: Buccaneer KL#1-4 The Baker Hughes# is MOST correct 10.KB Elev above MSL: 113 feet GL Elev above MSL: 93 feet That S "/c-9,ee.et fl Project Manager/Engineer PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, June 27, 2013 2:24 PM To: Stephen Hennigan Subject: RE: Buccaneer KL #1-4 Steve, What is the best estimate for the height of the KB above sea level and the elevation of ground surface above sea level for the planned Kenai Loop 1-4 well? above mean sea level (MSL) , with a ground Buccaneer's Permit to Drill application for lists the KB elevation as 215.5' elevation of 92.3' MSL. (This means that the rig floor will be "'123' above ground surface---not likely.) Baker-Hughes' directional survey lists the elevation of the rotary table as being 113.3' MSL. McLane's As-Staked survey plat lists an elevation of 133,96'. Thanks, Steve Davies AOGCC From: Stephen Hennigan [mailto:shennigan@peiinc.com] Sent: Thursday, June 27, 2013 10:42 AM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA) Subject: Buccaneer KL #1-4 I talked with Steve Ward today at Buccaneer. He is targeting July 8, 2013 for spudding. Are there any engineering/mechanical topics we need to address in the permit application? nitik 8 /c�.te et'Ja .e's ,4 Project Manager/Engineer PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 2 • Davies, Stephen F (DOA) From: Allen Huckabay[ahuckabay@buccaneerenergy.com] Sent: Thursday, June 27, 2013 9:21 AM To: Davies, Stephen F (DOA) Cc: Mark Landt Subject: RE: Exploratory Classification for the KL1-4 and 1-4 ST at Kenai Loop Gas Field Steve, I added a couple more slides to the PowerPoint I sent you yesterday to make it easier for me to explain the presentation to you. I'll try to call you later today because I'm going to be out of the office tomorrow. Thanks, Allen W. Allen Huckabay VP Exploration Buccaneer Alaska, LLC 952 Echo Lane, Suite 420 Houston,Texas 77024 Phone: 713.468.1678 Cell: 281.755.7181 ahuckabay@buccaneeralaska.com From: Allen Huckabay Sent: Wednesday, June 26, 2013 12:26 PM To: 'steve.davies@alaska.gov' Cc: Mark Landt Subject: Exploratory Classification for the KL1-4 and 1-4 ST at Kenai Loop Gas Field Hello Steve, Please see the attached PowerPoint which I put together to address your question about why the Kenai Loop 1-4 and 1- 4 ST should be classified as exploratory wells. After you've had a chance to review the slides, please give me a call so I can go over them with you. cc l- � �� Thanks, c.kve se5. Allen /[/(- Cit. - W.Allen Huckabay a72-6110 VP Exploration Buccaneer Alaska, LLC 952 Echo Lane, Suite 420 Houston,Texas 77024 Phone: 713.468.1678 Cell: 281.755.7181 ahuckabay@buccaneeralaska.com • • OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. • i TRANSMITTAL LETTER CHECKLIST /___, WELL NAME: C Al. ( ,1: _:,t_ .D Z G� PTD: 2--` J 1 09'/ Development Service < E pxp Exploratory lorato Stratigraphic ra hic Test Non-Conventional FIELD: t ( POOL: Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI The permit is for a new wellbore segment of existing well Permit LATERAL No. , API No. 50- - - - . (If last two digits Production should continue to be reported as a function of the original in API number are API number stated above. between 60-69) In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well Pilot Hole name ( PH) and API number (50- - - -__) from records, data and logs acquired for well. The permit is approved subject to full compliance with 20 AAC 25.055. / Approval to produce / inject is contingent upon issuance of a Spacing Exception conservation order approving a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the Commission must be in no an from below the permfrost or from ls Dry Ditch Sample wherersampl s0are first caughtaand 10' sample intervals though target zones. Please note the following special condition of this permit: production or production testing of coal bed methane is not allowed for Non-Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a)authorizes the AOGCC to specify types of well lo. o be run. In addition to the well logging program proposed by ( r*CycisfatirfAthe attached application, the following well / logs are also req ired fpr this well: i! Well Logging iii-S4..Crryt.dccc S Fr�c� �. n �/k Requirements „A,`,,,k,., i j 4,21 (,v�K- 1e. ca.--e• `_q4rzr�-j(.0te.)_ Per Statute AS 31.05.030(d) )(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. 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Kenai Loop 1-4 Kenai Borough, Alaska August 5, 2013 to September 11, 2013 Provided by: Approved by: Gary Rinehart Compiled by: Ralph Winkelman Britten Adams John Lundy Distribution Date: October 16, 2013 Kenai Loop 1-4 2 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW................................................................................................3 1.1 Equipment Summary......................................................................................................................3 1.2 Crew................................................................................................................................................3 2 GENERAL WELL DETAILS...................................................................................................................4 2.1 Well Objectives...............................................................................................................................4 2.2 Well Resume ..................................................................................................................................4 2.3 Hole Data........................................................................................................................................5 3 GEOLOGICAL DATA.............................................................................................................................6 3.1 Lithology Review.............................................................................................................................6 3.2 Sampling Program........................................................................................................................20 4 DRILLING DATA..................................................................................................................................21 4.1 Daily Activity Summary.................................................................................................................21 4.2 Surveys.........................................................................................................................................29 4.3 Bit Record.....................................................................................................................................34 4.4 Mud Record ..................................................................................................................................35 4.5 Drilling Progress Chart..................................................................................................................38 5 SHOW REPORTS ...............................................................................................................................39 6 DAILY REPORTS ................................................................................................................................40 Enclosures: 2”/100’ Formation Log (MD/TVD) 2”/100’ LWD Combo Log (MD/TVD) 2”/100’ Gas Ratio Log (MD/TVD) 2”/100’ Drilling Dynamics Log (MD/TVD) Final Well Data on CD Kenai Loop 1-4 3 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type / Position Total Downtime Comments Computer – Drill Floor Monitor Azonix 0 Computer – Pit Monitor Azonix 3 DAYS 9/11 - ISSUE WITH LICENSE Computer for Company Man Rigwatch Remote (HP Compaq) 0 Computer for Tool Pusher Rigwatch Remote (HP Compaq) 0 Computers for Mudloggers (2) Data editing, Rigwatch Master, and Rigwatch Remote (all HP Compaq) 0 Ditch gas Air motor gas trap (mounted in possum belly) Flame ionization total gas & chromatography. 0 Hook Load / Weight on bit Transducer on geolograph chart recorder 0 Mud Flow In Derived from Strokes/Minute and Pump Output 0 Mud Flow Out Flow line Sensor 0 Pit Volumes, Pit Gain/Loss 6 Sonar sensors 0 Pump Pressure Standpipe Transducer 0 Pump Stroke Counters (3) 3 Digital Micro switches 0 Rate of Penetration Depth Encoder Sensor 0 RPM Feed from Warrior Top Drive 0 Torque Feed from Warrior Top Drive 0 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML059 Mud Loggers Years *1 Days *2 Sample Catchers Years Days Technician Days Ralph Winkelman 22 61 Don Thibodeaux 30+ 23 Steve Forrest 1 Britten Adams 2 35 Debbie Bomar 30 Travis Smith 6 John Lundy 22 33 Dan Hillegeist 15 *1 Years experience as Mudlogger *2 Days at wellsite between rig up and rig down of logging unit. Kenai Loop 1-4 2 GENERAL WELL DETAILS 2.1 Well Objectives The objective of Kenai Loop 1-4 is to drill and log a multiple zone gas exploratory well in the Kenai Peninsula, with a minimum of hole problems or other concerns. 2.2 Well Resume Operator: Buccaneer Alaska Operations, LLC Well Name: Kenai Loop 1-4 Field: Kenai Peninsula Exploration County: Kenai Borough State: Alaska Company Representatives: Lonnie Drollinger, Joe Steiner, Jim Brown, Kevin Carlin, Larry Driskill Location: Surface Coordinates 1765’ FNL 1254’ FWL, Sec 33 T06N R11W SM, X = 279736.28 Y = 2402387.93 Ground Elevation 92.50’ AMSL Rotary Table Elevation 113.30’ AMSL Classification: Exploratory (Gas) API #: 50– 133 – 20618 – 00 – 00 Permit #: 213 – 091 Activity Code: AFE # KL1-4 Rig Name / Type: Glacier #1 / Land / Double Spud Date August 5, 2013 Total Depth Date: September 11, 2013 Total Depth 11,396’ Primary Targets Beluga / Tyonek Primary Target Depths Multiple, Unknown Discovery Zones Total Depth Formation: Tyonek Completion Status: Testing LWD-MWD Services. Baker Hughes Inteq Directional Drilling Baker Hughes Inteq Wireline Logging Services Schlumberger Drilling Fluids Service MI Swaco CANRIG Logging Geologists: Ralph Winkelman, Britten Adams, John Lundy CANRIG Sample Catchers: Don Thibodeaux, Debbie Bomar, Dan Hillegeist Kenai Loop 1-4 5 2.3 Hole Data Maximum Depth Shoe Depth Hole Section MD (ft) TVD (ft) TD Formation Mud Weight (ppg) Dev. (oinc) Casing (dia “) MD (ft) TVD (ft) LOT (ppg) (Conductor) 16” 138’ 138’ 16" 138’ 138’ N/A 13 ½” 3065’ 3062’ Sterling 8.9 0.14 10 3/4" 3057’ 3054’ 14.5 9 ” 9550’ 9353’ Tyonek 9.5 1.64 7 5/8" 9498’ 9300’ 14.5 6 ¾” 11396’ 11198’ Tyonek 9.7 2.71 4 1/2" 11396’ 11198’ n/a Note: Hanger for 4 ½” production liner was set at 9238’ MD ’ Kenai Loop 1-4 3 GEOLOGICAL DATA 3.1 Lithology Review Sand (3065' - 3190') = medium to medium dark gray overall with light greenish gray secondary hues, moderate salt and pepper appearance with individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light to medium greenish gray, trace dusky red and rust; very fine upper to trace very coarse lower, dominantly fine upper to medium lower; angular to subangular; fair to good sorting; unconsolidated; common to abundant Safe-Carb (crushed marble), mud additive contamination. Tuffaceous Claystone/ Tuffaceous Siltstone (3190' - 3260') = light to medium light gray with light bluish gray and light greenish gray secondary hues; soft to moderately firm; mushy at times; irregular shaped cuttings; silty to clayey texture; dull to earthy luster; hydrophilic; moderate to very soluble; slight to moderately expansive; poor adhesiveness; poor to fair cohesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; non calcareous. Sand (3260' - 3320') = medium gray overall with a moderate to strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light greenish gray, pale rose and rust; very fine upper to medium upper, dominantly fine upper to lower; angular to subangular; moderately well sorted; unconsolidated; trace black carbonaceous material/ coal. Tuffaceous Claystone/ Tuffaceous Siltstone (3320' - 3380') = medium to medium light gray with light brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clayey texture; dull to slightly waxy luster; hydrophilic; moderate to very soluble; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace to common dark brown to black microthin carbonaceous laminations and inclusions. Sand (3380' - 3450') = medium to medium light gray overall with a strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass with abundant multicolored liths, medium to dark gray, black light to medium greenish gray, rust, pale rose and yellowish green; very fine lower to medium upper, dominantly fine upper to lower; angular to subangular; fair to good sorting; unconsolidated; trace dark brown to black carbonaceous material/ coal. Tuffaceous Claystone/ Tuffaceous Siltstone (3450' - 3510') = medium to medium light gray with light bluish gray and light greenish gray secondary hues; soft to moderately firm; mushy at times; irregular shaped cuttings; silty to clayey texture; dull to earthy luster; hydrophilic; moderate to very soluble; slight to moderately expansive; poor adhesiveness; poor to fair cohesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; non calcareous. Sand (3510' - 3600') = medium gray overall with a moderate to strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light greenish gray, pale rose and rust; very fine upper to coarse lower, dominantly fine upper to lower; angular to subangular; moderately well sorted; dominantly unconsolidated with trace sandstone; light gray; very fine lower; moderately hard; irregular shaped fragments; well sorted; non calcareous; occasionally grading to sandy siltstone/ silty sandstone. Kenai Loop #4 7 Tuffaceous Claystone/ Tuffaceous Siltstone (3600' - 3660') = medium to medium light gray with light brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clayey texture; dull to slightly waxy luster; hydrophilic; moderate to very soluble; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace to common dark brown to black microthin carbonaceous laminations and inclusion; present in minor amounts in dominantly a sand formation. Sand (3660' - 3720') = medium to medium light gray with strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass and abundant multicolored liths; very fine upper to very coarse lower, dominantly medium; angular to subangular; unconsolidated; poor to fair sorting; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (3720' - 3810') = medium to medium light gray with light brownish gray and light olive gray secondary hues; very soft and mushy to moderately firm; irregular to wedge shaped cuttings; silty to clayey texture; dull to earthy luster hydrophilic; moderately soluble and expansive; poor to fair adhesiveness and cohesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace black carbonaceous material/ coal; firm to hard and brittle; blocky to platy; planar fracture dominant; earthy luster; silty to smooth texture; lignitic to subbituminous; no outgassing bubbles present. Sand (3810' - 3860') = medium gray overall with a moderate to strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light greenish gray, pale rose and rust; very fine upper to coarse lower, dominantly fine upper to lower; angular to subangular; moderately well sorted; dominantly unconsolidated. Sand (3860' - 3920') = medium to medium light gray with moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light to medium bluish green to greenish gray, rust, orange and pale rose; very fine upper to medium lower, dominantly fine; angular to subangular; fair to good sorting; unconsolidated. Tuffaceous Claystone/ Tuffaceous Siltstone (3920' - 3990') = medium to medium light gray with light yellowish brown secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clayey texture; dull to slightly waxy luster; hydrophilic; moderate to very soluble; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace to common dark brown to black microthin carbonaceous laminations and inclusion; present in trace amounts in dominantly a sand formation. Sand (3990' - 4040') = medium to medium light gray with strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass and abundant multicolored liths; very fine upper to coarse lower, dominantly medium lower to fine upper; angular to subangular; fair to good sorting; dominantly unconsolidated with trace ash supported sandstone; very fragile; very light gray to bluish white; non calc. Tuffaceous Claystone/ Tuffaceous Siltstone (4040' - 4120') = medium light to light gray with light brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clayey to slightly gritty texture; dull to waxy luster; hydrophilic; moderate to very soluble; moderately expansive; poor to fair cohesiveness; fair adhesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; siltstone commonly grades between silty sandstone and sandy siltstone; firm to moderately hard; non calcareous. Sand (4120' - 4170') = light to medium light gray overall with a weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light green to light greenish gray, rust and pale rose; very fine upper to medium lower, dominantly fine; angular to subrounded angularity; low to moderate sphericity; unconsolidated thick bedding structure; weak HCl reaction in bulk sample. Kenai Loop #4 8 Coal (4195' - 4230') = black to slight brownish black color; crunchy to tough tenacity; slight hackly fracture; bladed edges with tabular cutting habit; greasy to sparkling when wet; matte to abrasive with occasion gritty texture; laminae to thin lenticular bedding structure; no calcareous reaction. Tuffaceous Siltstone (4230' - 4275') = medium dark gray to dark gray color; brittle to crumbly tenacity; earthy to mottled fracture; elongated to platy and tabular cutting habits; earthy to dull when dry luster; silty to gritty texture; thin bedding structure; moderate hcl reaction to bulk sample. Tuffaceous Sandstone (4275' - 4335') = light olive gray to olive gray with slight medium light gray hue color; crunchy with occasion brittle tenacity; irregular to mottled fracture; platy to bladed edged cutting habits; dull to sparkling grains luster; gritty to mottled texture; thick bedding structure; sandstone has interbedded cream white volcanic ash; very weak hcl reaction. Coal/Carbonaceous Shale (4345' - 4395') = black to dark grayish black with dark brownish hue within the lamination; dense to tough with occasion brittle and crunchy tenacity; irregular to hackly fracture; platy to wedgelike bladed cutting habits; greasy to waxy when wet, dull to slight resinous when dry luster; matte to smooth with occasion silty texture; thin laminae bedding structure; no hcl reaction. Sand (4400' - 4080') = translucent clear to milky clear with occasional black, light green, light pink, yellowish brown, and reddish orange colors; unconsolidated sands with dominantly quartz and feldspars, occasional lithics and tuff; upper fine to upper coarse grain size; very poorly sorting; angular to subrounded smaller grains angularity; low to moderate sphericity; massive bedding structure with volcanic tuff interbedded within; very low hcl reaction in sample. Tuffaceous Siltstone (4480' - 4545') = dark gray to medium gray with olive gray hues as secondary color; crumbly to friable tenacity; irregular blocky to earthy; platy to tabular; waxy when wet and dull to earthy when dry; silty to matte texture; thin bedding structure; no hcl reaction. Tuffaceous Sandstone (4525' - 4580') = medium dark gray to dark gray with light olive hue and cream white tuff interbedded in sandstone; friable to firm friable hardness; crunchy to slight tough tenacity; mottled to drusy fracture; tabular to elongated cutting habits; greasy to sparkling grains luster; gritty to mottled texture; thick bedding structure; no hcl reaction. Tuffaceous Claystone/ Tuffaceous Siltstone (4580' - 4680') = medium light to light gray with very light brownish gray secondary hues; soft to slightly firm to very firm; irregular to tabular shaped cuttings with scattered pdc bit action "scooped" appearance; silty to clayey to slightly gritty texture; dull, earthy to slightly waxy luster; hydrophilic; moderate to very soluble and expansive; poor adhesiveness; fair to good cohesiveness; non calcareous. Sand/ Tuffaceous Sandstone (4680' - 4760') = light gray with a weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray, black and trace amounts of light green to greenish gray, rust, dusky red and pale rose; very fine lower to medium upper, dominantly fine upper to lower; angular to subangular; moderately well sorted; dominantly unconsolidated with scattered ash supported sands; very light gray to bluish white; very fragile to pulverulent; fine grain; same characteristics as lose sand; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (4750'- 4800') = medium light gray; soft and fragile to very firm and brittle; irregular to pdc bit action shaped cuttings; silty to clayey texture; dull to earthy luster; moderately soluble and expansive; fair cohesiveness; poor adhesiveness; non calcareous; note 10%-30% Resinex and Sack Black mud additive contamination (asphalt based products). Kenai Loop #4 9 Sand/ Tuffaceous Sandstone (4800' - 4880') = light to medium light gray with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass with abundant multicolored liths as noted above; fine lower to medium upper, dominantly fine upper to lower; angular to subangular; moderately well sorted; dominantly unconsolidated with ash supported sands; very fragile and pulverulent; light gray to grayish white; non calcareous. Sand/ Tuffaceous Sandstone (4880' - 4960') = light gray with moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray, black and trace amounts of light green to greenish gray, rust, dusky red and pale rose; very fine upper to very coarse lower, dominantly fine upper to medium upper; angular to subangular; poor to fair sorting; dominantly unconsolidated with tuffaceous sandstone common; very fragile and pulverulent; bluish white matrix; fine to medium grain; multicolored liths throughout; non calcareous. Sand/ Tuffaceous Sandstone (4960' - 5040') = medium gray with light brownish gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray, black trace amounts of light green to greenish gray, rust, dusky red and pale rose; very fine upper to very coarse lower, dominantly medium; angular to subangular; poor to fair sorting; easily disaggregated with abundant ash supported sandstone; multicolored hues in dominantly light to medium gray to bluish gray ash matrix; very fragile and pulverulent; visible glass shards present; non calcareous. Sand/ Tuffaceous Sandstone (5040' - 5110') = medium to medium light gray with moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass with abundant multicolored liths as noted above; fine upper to very coarse upper, dominantly medium upper to lower; angular to subangular; poor to fair sorting; very loosely consolidated with ashy matrix; very fragile and pulverulent; light gray to grayish white with light brown, light greenish gray and bluish green secondary hues; non calcareous. Conglomerate Sands (5115' - 5160') = translucent clear to milky clear with occasional grayish black, black, light greenish gray, and traces of reddish orange hue color; unconsolidated sands with 2mm-2.5mm size; quartz dominant with lithic; moderate to well sorted; subrounded to rounded angularity; high sphericity; thin bedding structure; very weak hcl reaction in bulk sample. Tuffaceous Sandstone (5170' - 5225') = white to cream very light gray with occasional orange, light green and light yellow brown hue color; mushy consistency; pulverulent to soft and weakly crumbly tenacity; irregular earthy fracture; nodular to curved cutting habits; earthy to dull luster when dry, waxy when wet luster; ash matrix is clayey and grains are silty texture; weak hcl reaction. Sand/ Conglomerate Sand (5230' - 5295') = clear to translucent milky clear with occasion grayish black, black, greenish gray, light translucent green, light olive green, and light brown with red orange hue color; quartz to feldspar dominant with lithic and trace tuff; unconsolidated sands; lower fine to lower coarse with occasional 2-3mm grains of conglomerates; poorly sorting; angular to rounded larger grain angularity; low to moderate sphericity; trace of volcanic tuff within sample; massive bedding structure Tuffaceous Sandstone (5305' - 5370') = medium gray to light medium gray with olive gray and brownish black hue, traces of reddish orange, olive gray interbedded throughout sandstone; tuff ash matrix; consolidate with soft to friable hardness; crumbly to slight malleable tenacity; earthy to mottled fracture; nodular to blocky cutting habits; dull to earthy luster; silty to gritty with clayey ash matrix; thick bedding structure; no hcl reaction Coal (5370' - 5410') = grayish black to black color; brittle to crunchy with occasional tough tenacity; splintery to hackly fracture; elongated to wedgelike with flaky bladed edges cutting habits; greasy to waxy luster; smooth to matte texture; laminae to lenticular bedding structure; no hcl reaction . Kenai Loop #4 10 Tuffaceous Siltstone (5420' - 5460') = olive gray to light olive gray with dark greenish gray hue color; crumbly tenacity; earthy fracture; platy to wedgelike cutting habits; dull to earthy when dry and waxy when wet luster; silty to colloidal texture; massive to thick bedding structure; no hcl reaction. Tuffaceous Sandstone (5470' - 5540') = light medium gray to medium with white streaks, occasional light green translucent minerals, and yellowish light brown hues color; consolidate with volcanic ash; lumpy to mushy consistency; soft to friable hardness; quartz dominant with trace of reddish orange tuff and black lithics; earthy to mottled fracture; nodular cutting habits; dull to earthy with sparkling minerals luster; silty to gritty with clayey ash matrix texture; massive to thick bedding structure; very weak hcl reaction. Tuffaceous Siltstone (5570' - 5610') = medium dark gray to dark gray with olive and light olive gray hues color; crumbly to friable tenacity; earthy to occasional hackly fracture; wedgelike to platy cutting habits; dull to waxy luster; silty to matte texture; thick to massive bedding structure; no hcl reaction. Tuffaceous Sandstone (5620' - 5680') = grayish black to medium black with light olive gray to olive gray hues and creamy white thin banded colors; consolidated with volcanic ash matrix; soft to easily friable hardness; mushy consistency; malleable crumbly tenacity; earthy fracture; nodular cutting habits; dull to earthy luster with sparkling minerals luster; silty to clayey texture; thin bedding structure; very weak hcl reaction. Tuffaceous Siltstone (5685' - 5730') = dark gray to medium dark gray with medium bluish gray hue color; easily friable to friable hardness; crumbly to slight malleable tenacity; earthy to mottled fracture; tabular to elongated cutting habits; dull to waxy when dry luster; silty to clayey texture; massive bedding structure; no hcl reaction. Tuffaceous Claystone (5740' - 5780') = dark medium gray to medium gray color; lumpy to mushy consistency; malleable to pulverulent tenacity; irregular fracture; nodular cutting habits; waxy to earthy luster; clayey to colloidal texture; thin bedding structure; very weak hcl reaction. Sand (5780' - 5860') = medium gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray, black, trace dusky red and rust; very fine lower to trace very coarse upper, dominantly fine lower to medium lower; angular to subangular; poorly sorted; unconsolidated; trace very light grayish white ash supported sands; very fragile; very fine grain; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (5860' - 5930') = medium to medium light gray with light bluish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clayey texture; dull, earthy to slightly waxy luster; hydrophilic; moderately soluble and expansive; fair cohesiveness; poor adhesiveness; rare trace dark brown to black microthin carbonaceous laminations and inclusions in firmer cuttings; non calcareous; trace dark brown to black carbonaceous material/ coal; present in thin beds. Sand/ Conglomerate (5930' - 6000') = medium to medium light gray with individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray, medium to dark greenish gray; very fine upper to very trace very coarse upper with 5mm fragments, dominantly medium upper to fine lower; angular to subangular with trace subrounded fragments; poorly sorted; dominantly unconsolidated with trace sandstone; light brown to brownish gray; very fine; hard; non calcareous. Tuffaceous Claystone (6005' - 6650') = medium gray to medium dark gray with slight olive gray hues colors; clotted to mushy consistency; pulverulent to malleable tenacity; earthy fracture; nodular to curved cutting habits; dull when dry and greasy when wet luster; clayey to colloidal texture; no hcl reaction in bulk sample. Kenai Loop #4 11 Tuffaceous Siltstone (6055' - 6110') = grayish black to dark gray with brown gray hues color; crumbly to slight malleable tenacity; earthy fracture; tabular to platy cutting habits; dull to waxy when dry; silty to matte texture; thick to massive bedding structure; weak to moderate hcl reaction in bulk sample. Sand (6105' - 6160') = dominantly clear to translucent smoky with occasional light greenish gray, light medium bluish gray, reddish translucent clear; and pale yellowish orange color; unconsolidated with dominant quartz with lithic; very fine grain to upper medium grain size; moderate to fair sorting; angular to subangular angularity; low sphericity; thin bedding structure; moderate hcl reaction in sand. Tuffaceous Siltstone (6165' - 6210') = dark gray to medium dark gray with medium bluish gray color; friable to easily friable hardness; crumbly to malleable tenacity; earthy fracture; nodular to tabular cutting habits; dull to earthy when dry; thick to massive bedding structure; no hcl reaction bulk sample. Tuffaceous Claystone (6215' - 6265') = medium dark gray to medium gray with dark greenish gray hues and medium bluish gray hues color; very soft hardness; lumpy to clumpy consistency; malleable to pulverulent tenacity; earthy fracture; adhesive surface; nodular cutting habits; waxy to earthy luster; clayey to silty and colloidal texture; thick bedding structure; weak hcl reaction. Tuffaceous Siltstone (6300' - 6325') = medium gray to grayish black with dark bluish gray and medium green gray hues color; crumbly to friable tenacity and hardness; earthy to drusy fracture; platy to wedgelike tabular cutting habits; very weak hcl reaction . Tuffaceous Claystone (6335' - 6385') = medium gray to medium dark gray with medium bluish gray hues similar to tuffaceous siltstone colors; lumpy to mushy consistency; pulverulent to malleable tenacity; irregular fracture; nodular to rounded cutting habits; dull to earthy when dry; clayey to colloidal and silty texture; massive to thick bedding structure; weak hcl reaction bulk sample. Sand (6395' - 6445') = translucent to clear with smoky and milky, occasional grayish orange smoky grains color; quartz to feldspar dominant; unconsolidated sands; very fine grain to upper medium grain size; well to moderate sorting; subangular to subrounded angularity; low to moderate sphericity; lithic and volcanic tuff are accessory minerals; weak hcl reaction in sand. Tuffaceous Claystone (6455' - 6500') = medium dark gray to medium gray with medium bluish gray hues colors; soft hardness; lumpy to clotted consistency; adhesive surface; earthy fracture; nodular to rounded cutting habits; earthy to waxy luster; clayey to silty texture; massive bedding structure; weak to moderate hcl reaction on claystone. Sand/ Sandstone (6500' - 6570') = medium gray overall with individual grains light to dark gray, clear to translucent quartz and volcanic glass, black and medium to dark greenish gray; very fine upper to very coarse lower, dominantly fine upper to medium upper; angular to subangular; poorly sorted; dominantly unconsolidated with trace light brown to light grayish brown sandstone; very fine well sorted; hard; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (6570' - 6630') = light to medium light gray with very light brown to brownish gray secondary hues; very soft to moderately hard and brittle; irregular to pdc bit action shaped cuttings; silty to clayey texture; dull to slightly waxy luster; hydrophilic; slight to moderately expansive and soluble; poor to fair cohesiveness and adhesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace black carbonaceous material/ thin coals. Kenai Loop #4 12 Sand (6630' - 6700') = medium to medium dark gray overall with individual grains light to dark gray, clear to translucent quartz and volcanic glass, black and medium to dark greenish gray; very fine upper to trace coarse upper, dominantly fine upper to medium upper; angular to subangular; poorly sorted; dominantly unconsolidated with trace light brown to light brownish gray sandstone; hard. Tuffaceous Claystone/ Tuffaceous Siltstone (6570' - 6630') = medium to medium light gray; very soft to moderately firm irregular shaped cuttings with abundant pdc bit action present; silty to clayey texture; dull to waxy luster; slight to moderately expansive and soluble; poor to fair cohesiveness; fair to good adhesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; non calcareous. Sand (6775' - 6830') = clear to smoky translucent with occasional dark green gray, greenish gray and orange slight red tuff colors; unconsolidated sands; quartz to feldspar dominant with tuff, lithics, and calcite; very fine to upper fine grains sizes; well to moderate sorting; subangular to subrounded angularity; low to moderate sphericity; increase in size in bedding structure; moderate hcl reaction in sands. Coal (6840' - 6880') = black to grayish black with brownish black hues; firm friable to hard hardness; crunchy to tough tenacity; hackly to planar fracture; tabular to bladed edges cutting habits; greasy to waxy luster; smooth to abrasive texture; thin to lenticular bedding structure; no hcl reaction. Tuffaceous Claystone (6910' - 6980') = medium dark gray to dark gray with medium bluish gray hues color; clumpy to lumpy with occasional stiff consistency; pulverulent to malleable tenacity; irregular fracture; nodular cutting habits; dull to waxy luster when dry; clayey to colloidal texture; thick bedding structure; moderate hcl reaction in bulk sample. Sand/ Sandstone (6980' - 7060') = medium to medium light gray with individual grains medium to dark gray to greenish gray, clear to translucent quartz and volcanic glass, black and trace rust; very fine lower to medium upper, dominantly fine upper to lower; angular to subangular; moderately well sorted; dominantly unconsolidated with trace ash supported sands; very fragile; medium to dark gray; non calcareous; medium gray sandstone; hard and brittle; fine to medium grain; very well cemented; moderate to very calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (7060' - 7160') = medium light gray with light greenish gray secondary hues; very soft to occasionally firm; sticky at times; irregular to pdc bit action shaped cuttings; silty to clayey texture dull to slightly waxy luster; hydrophilic moderate to very expansive and soluble; poor to fair cohesiveness; fair to good adhesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; non calcareous; thin coal at 7150'; black with dark brown secondary hues; hard; platy to flaky; planar fracture dominant; smooth to silty texture; resinous to earthy luster; subbituminous; no to very weak trace outgassing bubbles observed; present as thin bed in dominantly claystone and sand formation. Tuffaceous Claystone (7160' - 7210') = medium dark gray to dark gray with medium bluish gray and greenish gray hues color; lumpy to mushy consistency; pulverulent to malleable tenacity; earthy to irregular fracture; nodular to rounded cutting habits; earthy to waxy luster; clayey to silty texture; thick to massive bedding structure; no hcl reaction. Sands (7215' - 7260') = clear to translucent clear with smoky to milky and occasional yellowish brown clear color; unconsolidated with black lithic and quartz dominant; very fine to upper medium grain size; moderate to poorly sorted; angular to subrounded angularity; low to moderate sphericity; sand in increasing from 7200'-7260'md. moderate hcl reaction in sample. Kenai Loop #4 13 Tuffaceous siltstone (7270' - 7315') = medium gray to dark gray with medium bluish gray hues; stiff to crumbly tenacity; earthy to drusy fracture; platy to wedgelike and curved edges cutting habits; dull to earthy when dry and greasy when wet luster; silty to gritty texture; thick to massive bedding structure; no hcl reaction to siltstone. Coal (7345' - 7380') = black to dark grayish black with slight olive brown black hues color; tough to stiff tenacity; hackly to slight conchoidal fracture; elongated to bladed cutting habits; greasy to sparkling in the light luster; smooth to abrasive texture; thin to lenticular with lamination bedding structure; no hcl reaction on coal. Tuffaceous Claystone (7400' - 7455') = dark gray to medium dark gray with light olive gray hues color; black lithics are in the claystone; mushy to lumpy consistency; adhesive surface; irregular fracture; nodular to rounded cutting habits; earthy to dull when dry luster; clayey to silty due to the lithics in claystone; massive to thick bedding structure; no hcl reaction. Tuffaceous Siltstone (7455' - 7500') = dark grey to medium dark gray with medium bluish gray hue and light olive gray hue color; crumbly tenacity; earthy fracture; platy to wedgelike cutting habits; waxy to greasy when wet and dull when dry luster; silty to matte texture; massive bedding structure; moderate hcl reaction in bulk sample. Sand (7500' - 7540') = note sample 10% -30% Safe Carb Mud additive; medium to medium light gray overall; very fine lower to medium lower, dominantly fine; angular to subangular; poor to fair sorting; unconsolidated. Sand (7500' - 7540') = note sample 10% -30% Safe Carb mud additive; medium to medium light gray overall; very fine lower to medium lower, dominantly fine; angular to subangular; poor to fair sorting; unconsolidated. Tuffaceous Claystone/ Tuffaceous Siltstone (7540' - 7640') = medium to medium light gray with very light olive gray secondary hues; soft and fragile to slightly firm; irregular with trace PDC bit action shaped cuttings; silty to clayey texture; dull to earthy luster; hydrophilic; slight to moderately soluble and expansive; fair cohesiveness; fair to good adhesiveness; trace to common dark brown to black microthin carbonaceous laminations and inclusions; non calcareous; thin coals; black; hard to brittle; flaky to platy; planar fracture dominant; smooth texture; resinous luster; no outgassing observed. Sand/ Sandstone (7640' - 7700') = medium gray overall with individual grains dominantly medium to dark gray, clear to translucent quartz and volcanic glass, black; very fine upper to medium lower, dominantly fine; angular to subangular; fair to good sorting dominantly unconsolidated with sandstone; medium to medium dark gray with weak salt and pepper appearance; fine to medium grain; hard; slight to moderately calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (7700' - 7770') = medium to medium light gray with light brownish gray secondary hues; soft to moderately firm; irregular to amorphous with trace bit action shaped cuttings; silty to clayey texture; dull to earthy luster; hydrophilic; slight to moderately soluble and expansive; fair cohesiveness; fair to good adhesiveness; trace to common dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds; no outgassing observed. Coal (7770' - 7830') = present as thin beds in dominantly claystone formation; black with dark brownish black secondary hues; firm to moderately hard and brittle; platy to flaky; planar fracture dominant; smooth to silty texture; earthy to resinous luster; subbituminous; very weak trace outgassing observed. Kenai Loop #4 14 Tuffaceous Claystone (7825' - 7870') = grayish black to dark gray with slight resinous olive gray layer on top on of claystone; mushy to clumpy consistency; malleable to pulverulent tenacity; earthy fracture; nodular to rounded cutting habits; dull to earthy luster; clayey to colloidal texture; massive to thick bedding structure; no HCl reaction on claystone. Tuffaceous Siltstone (7880' - 7930') = grayish black to dark gray with very small black layers interbedded with the siltstone; easily friable to firm friable hardness; brittle to stiff tenacity; irregular to slight hackly fracture; wedgelike to tabular with occasional platy cutting habits; waxy to dull luster; silty to matte texture; thick to massive bedding structure; no HCl reaction on siltstone. Coal (7940' - 7985') = black to grayish black with yellowish brown resinous layer on the surface; moderate hard to very hard; tough to crunchy tenacity; planar to slight conchoidal fracture; bladed to tabular wedgelike cutting habits; greasy to waxy with slight resinous luster; smooth texture; thin lenticular bedding structure. Sandstone (7990' - 8030') = olive black to brownish black with translucent clear grains color; consolidated with quartz dominant framework; silica cement; tough to dense tenacity; drusy fracture; tabular cutting habits; frosted to earthy luster; sucrosic to gritty texture; thin bedding structure; no HCl reaction on sandstone. Coal (8050' - 8065') = grayish black to black color; crunchy to stiff tenacity; hackly to splintery fracture; wedgelike to bladed cutting habits; greasy to waxy luster; smooth to texture; thin bedding structure; outgassing on the surface and outgassing on the sands; no HCl reaction on coal. Tuffaceous Claystone (8085' - 8150') = dark gray to medium dark gray with light olive gray or olive gray hues colors; clumpy to mushy consistency; pulverulent to malleable tenacity; irregular to earthy fracture; nodular cutting habits; dull to earthy luster; colloidal to clayey texture; thick to massive bedding structure. Sand (8150' - 8200') = note 10% - 30% Safe Carb mud additive; medium to medium light gray overall with individual liths dominantly clear to translucent quartz and volcanic glass, light to medium translucent gray, medium to dark gray, black trace pale rose and dusky red; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; poorly sorted; unconsolidated. Tuffaceous Claystone/ Tuffaceous Siltstone (8200' - 8270') = medium light to medium gray with very light olive gray secondary hues; soft to slightly firm; irregular shaped with trace to common PDC bit action shaped cuttings; silty to clayey to slightly gritty texture; dull luster; hydrophilic; moderate to very soluble and expansive; poor to fair cohesiveness; fair to good adhesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; non calcareous; trace to common thin coal beds throughout; black; hard and brittle platy to flaky; smooth texture; resinous to earthy luster; planar fracture dominant; subbituminous to bituminous; no to very weak trace outgassing observed; continued Safe Carb contamination. Coal (8330' - 8345') = black to grayish black color; tough to crunchy tenacity; planar to hackly fracture; platy to bladed wedgelike cutting habits; greasy to waxy luster; smooth texture; thin to lenticular bedding structure; no HCl reaction to coal. Tuffaceous Claystone (8350' - 8400') = dark gray to medium dark gray with light olive gray to olive gray hues; clotted to mushy consistency; malleable to pulverulent tenacity; irregular fracture; nodular to rounded cutting habits; dull to earthy luster; silty to colloidal texture; thick to massive bedding structure; moderate HCl reaction on claystone. Kenai Loop #4 15 Tuffaceous Siltstone (8405' - 8475') = medium dark gray to dark gray with olive gray hue color; crumbly to stiff tenacity; easily friable to firm friable hardness; earthy to irregular fracture; tabular to curved cutting habits; dull to earthy luster; silty to matte texture; thick to massive bedding structure. Tuffaceous Sandstone (8475' - 8520') = medium dark gray with salt and pepper grains interbedded; soft to easily friable hardness; malleable tenacity; earthy fracture; nodular cutting habits; sparkling grains with dull luster; mottled to gritty texture; thin bedding structure; lithic and quartz grains interbedded; volcanic ash cement; weak HCl reaction with Safe Carb on surface Sand (8530' - 8580') = translucent to clear with occasional light grayish, goldish brown, moderate brown and black to dark gray lithics colors; unconsolidated with dominant Safe Carb from mud man, quartz and lithics; very fine to lower coarse grain size; poorly sorted, angular to subangular angularity; very low sphericity; thick bedding structure. Tuffaceous Sandstone/ Sand (8580' - 8650') = yellowish gray overall with dark to medium gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray, black, trace pale rose; very fine upper to trace very coarse lower, dominantly fine upper to medium lower; angular to trace subrounded, dominantly subangular; poorly sorted; ashy matrix is very fragile and pulverulent; common glass shards throughout; non calcareous; continued Safe Carb contamination. Coal (8650' - 8710') = present as thin beds (1'-5') in dominantly sand and claystone formation; black with brownish black secondary hues; firm to hard and brittle; platy to flaky to splintery; planar fracture dominant with trace birdeye and conchoidal; smooth to silty texture; earthy to resinous luster; subbituminous to bituminous; no to very weak outgassing observed. Tuffaceous Claystone/ Tuffaceous Siltstone (8710' - 8740') = medium light to light gray with light brown secondary hues; soft to pulverulent; irregular to PDC bit action shaped cuttings; silty to clayey with colloidal texture; thick to massive bedding structure; no HCl reaction on claystone and siltstone. Tuffaceous Sandstone (8790' - 8840') = yellowish gray with spotty medium dark gray, black, and clear to smoky clear grain color; consolidated sand with volcanic ash cement; crumbly to brittle tenacity; friable to firm friable hardness; earthy to mottled fracture; bladed to tabular cutting habits; dull to earthy; silty to gritty texture; massive bedding structure; no HCl reaction on sandstone. Sand/ Conglomeratic Sand/ Tuffaceous Sandstone (8840' - 8920') = light gray to light bluish gray overall with light yellowish gray secondary hues overall from ashy supporting matrix, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray and black; very fine upper to very coarse upper with 4mm fragments, dominantly fine upper to medium lower; angular to subangular; poorly sorted; unconsolidated to friable; fragile ash supported sands; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (8920' - 8970') = light gray with very light brownish gray secondary hues; soft to slightly firm; irregular with scattered PDC bit action shaped cuttings silty to clayey to slightly gritty texture; dull to earthy luster; hydrophilic; moderately soluble and expansive; poor to fair cohesiveness; poor adhesiveness; non calcareous. Sandstone/ Sand (8970' - 9030') = medium gray with strong salt and pepper appearance; fine to medium grain; friable to brittle; angular to subangular; grain supported; non calcareous; individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray and black lithic coal fragments; poorly sorted; trace to common ash supported grains; very fragile; light gray with light yellowish gray secondary hue. Kenai Loop #4 16 Tuffaceous Claystone/ Tuffaceous Siltstone (9030' - 9100') = medium to medium light gray with brownish gray hues; soft to slightly firm; irregular with common PDC bit action shaped cuttings; silty to clayey to slightly gritty texture; dull to earthy luster; hydrophilic; moderately soluble and expansive; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace thin coals; black; firm to hard; platy to flaky; smooth texture; resinous to earthy luster; thick bedding structure. Coal (9105' - 9140') = black to dark grayish color; brittle to crunchy tenacity; hackly to planar fracture; bladed edges to wedgelike with tabular cutting habit; waxy to greasy when wet; smooth to slightly matte; laminae to thin lenticular bedding structure; gassing on coal surface; no HCl reaction. Sand (9150' - 9205') = translucent to clear with occasional smoky, pale blue, light olive gray, pale yellowish orange, and black to dark grayish colors; quartz dominant with black lithics and occasional volcanic tuff; unconsolidated sands; very fine to upper coarse grain size; poorly sorting grains; subangular to subrounded angularity; moderate to high sphericity; large bedding structure; moderate HCl reaction with Safe Carb in sample. Sand/ Sandstone/ Tuffaceous Sandstone (9210' - 9310') = medium to medium light gray with light olive gray secondary hue individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray and black; very fine lower to medium lower, dominantly fine; angular to subangular; moderately well sorted; very loosely consolidated; ash matrix very fragile; grain supported sands; salt and pepper appearance; fragile to brittle; non calcareous; trace grayish brown sandstone grades between silty sandstone and sandy siltstone; abundant thin coals throughout. Tuffaceous Claystone/ Tuffaceous Siltstone (9310' - 9390') = medium to medium light gray with brownish gray hues; soft to slightly firm; irregular to common PDC bit action shaped cuttings; silty to clayey to slightly gritty texture; dull to earthy luster; hydrophilic; moderately soluble and expansive; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace light brown to light brownish gray siltstone; firm; non calcareous; commonly grades between silty sandstone and sandy siltstone; trace to common thin coal beds throughout; no to trace very weak outgassing. Coal (9390' - 9450') = present as numerous thin beds; black with dark brownish black secondary hues; very firm to hard and brittle; platy to blocky and flaky; planar fracture dominant with birdeye and conchoidal common; smooth to slightly silty texture; resinous to earthy luster; bituminous; no to very weak outgassing bubbles observed. Tuffaceous Sandstone/ Sand (9450' - 9510') = olive gray overall with to light to medium gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray, black; very fine upper to trace coarse lower, dominantly fine upper to lower; angular to subangular; fair to good sorting; very ashy supporting matrix; very fragile and pulverulent; non to trace calcareous; trace grain supported sandstone; hard to brittle; salt and pepper appearance; fine to medium; angular to subangular; non calcareous; trace to common thin coal beds throughout. Tuffaceous Siltstone/ Tuffaceous Claystone (9580' - 9680') = medium to medium light gray with slight to marked brownish secondary hues; soft to slightly firm; thinly bedded/interbedded; carbonaceous in part; trace microthin carbonaceous lamina; silty to sandy texture; dull earthy to microsparkly luster; non adhesive; slightly cohesive; hydrophilic; common thin ash interbeds; grades to silty tuffaceous sandstone; occasional thin to moderate sub-bituminous coals with slight to moderate de-gassing; slightly calcareous. Kenai Loop #4 17 Tuffaceous Sandstone/ Sand (9680' - 9750') = medium light to light gray; soft to disaggregated loose sand; moderately well to well sorted; friable in part; fine upper to fine lower and medium lower grain predominate; angular to sub-angular translucent white to clear quartz/ volcanics; trace to common dark gray to black lithic/ mineral grains; trace to common coal fines; trace brown and orange grains; interbedded with thin to moderate ash and tuffaceous siltstones with occasional thin coals; some samples contain scattered very fine grain porous sandstone; generally matrix supported in soft fluffy white ash; slightly calcareous. Tuffaceous Claystone (9750' - 9800') = medium to medium light gray with olive gray secondary hues; soft to slightly firm; irregular shaped; silty to clayey texture; dull to earthy luster; moderately soluble and expansive; poor cohesiveness; poor to fair adhesiveness. Sand/ Tuffaceous Sandstone (9800’ - 9850’) = very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace light to medium gray, greenish gray and pale rose; very fine upper to trace coarse lower, dominantly fine upper to lower; angular to subangular; moderately well sorted; unconsolidated with increasing ashy matrix with depth; very fragile and pulverulent; grayish white; non calcareous. Tuffaceous Sandstone/ Sand (9850’ - 9920’) = very light gray to bluish white with darker gray secondary hues; very fragile and pulverulent; individual grains dominantly clear to translucent quartz and volcanic glass with trace multicolored liths; very fine upper to medium lower; angular to subangular; moderately well sorted; non calcareous; trace thin coals throughout. Tuffaceous Claystone/ Tuffaceous Siltstone (9920' - 9980') = medium to medium light gray with olive gray and light brownish gray secondary hues; soft and fragile; irregular and pdc bit action shaped cuttings; silty to clayey to slightly gritty texture; earthy to slightly sparkly luster; hydrophilic; moderately soluble and expansive; poor to fair cohesiveness and adhesiveness; non calcareous; trace to common thin coal beds. Coal (9980' - 10040') = black with dark brownish black secondary hues; hard to brittle; scaly to flaky and platy; planar fracture dominant with trace conchoidal and birdeye fracture; smooth to silty texture; resinous to earthy luster; sub-bituminous to bituminous; trace to common outgassing observed; numerous thin coal beds throughout interval. Tuffaceous Claystone/ Tuffaceous Sandstone (10040' - 10100') = very light to light gray to grayish white with darker gray secondary hues; soft and sticky; irregular, shapeless cuttings; silty to clayey to gritty texture; dull to greasy luster; hydrophilic; moderately soluble and expansive; poor cohesiveness; poor to fair adhesiveness; non calcareous; claystone commonly grading to very weathered tuffaceous sandstone; trace to common thin coal beds throughout. Sand/ Conglomeratic Sand (10100' - 10170') = medium to medium light gray with strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray, black, white, greenish gray, dark greenish blue and pale rose; very fine upper to very coarse upper with 4mm fragments, dominantly medium upper; angular to subangular; poorly sorted; dominantly unconsolidated with trace ash matrix supported grains; light gray to bluish white; very fragile to pulverulent; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (10170' - 10230') = medium to medium light gray with light olive gray secondary hues; very soft; fragile to pulverulent; irregular to pdc bit action shaped cuttings; silty to clayey texture dull to earthy luster; hydrophilic; moderately soluble and expansive; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace to common thin coal beds throughout; black with dark brownish black secondary hues; no to weak visible outgassing observed. Kenai Loop #4 18 Coal/ Carbonaceous Shale (10170' - 10300') = black to very dark brown and medium brownish gray; firm to crumbly; hackly; sub-bituminous to lignitic grading to silty carbonaceous shale and siltstone; coal is sub- mature with some conchoidal fracture; very weak persistent outgassing; occurs as thin to moderate interbeds in associated tuffaceous complex. Tuffaceous Siltstone/ Claystone (10300' - 10400') = medium to medium light and dark gray; soft to slightly firm; silty to clayey texture; sandy in part; dull earthy luster; slight microsparkly appearance; non adhesive; slightly cohesive; hydrophilic; easily lost in sample preparation; grades to and interbedded with similar tuffaceous sandstone; locally slightly to very carbonaceous; trace to abundant carbonaceous microlamina; occasional thin to moderate coal/carbonaceous shale interbeds; moderately calcareous. Tuffaceous Sandstone/ Conglomeratic Sand/ Conglomerate (10400' - 10500') = medium light gray; samples collected as disaggregated loose sand and rare intact ash matrix sandstone fragments; moderately well to poorly sorted; sub-rounded to sub-angular and angular; fine upper to medium lower grading to medium upper and coarse with increasing depth; scattered pebbles becoming abundant; predominantly translucent white to clear quartz/ volcanics; 10 to 20% lithic fragments; trace black chert pebble/ fragments; occasional small fine grain porous sandstone fragments; generally matrix supported in soft fluffy white to mottled gray/white ash; thickly bedded with scattered thin siltstone, claystone and ash interbeds; scattered thin coals or clastic coal inclusions; slightly to moderately calcareous. Coal/ Carbonaceous Shale (10500' - 10560') = black to very dark brown and medium brownish gray; firm to crumbly; hackly; sub-bituminous coal and brown to gray brown carbonaceous shale; good conchoidal fracture; visible cleat; moderate outgassing does not persist; occurs as thin to moderate beds/ interbeds in thinly bedded tuffaceous complex. Tuffaceous Siltstone/ Sandstone (10560' - 10600') = medium light to light gray with a slight brownish secondary hue; soft to slightly firm; silty to sandy; dull earthy luster; hydrophilic; non adhesive; slightly cohesive; grades to tuffaceous claystone; locally some visible porosity in combined matrix and grain supported fine grain sandstone; slightly calcareous. Sand/ Conglomeratic Sand/ Tuffaceous Sandstone (10600' - 10680') = medium to medium light gray overall with clear to translucent quartz and volcanic glass dominant with abundant multicolored grains, light to medium gray, dark gray, black, brown, rust, pale rose, orange and light to medium green; very fine upper to very coarse upper with 3mm fragments, dominantly medium lower to coarse lower; poorly sorted; dominantly unconsolidated with light grayish white ashy matrix sandstone; very fragile and pulverulent; non calcareous; trace to common thin coal beds throughout interval. Tuffaceous Claystone/ Tuffaceous Siltstone (10680' - 10750') = medium light gray with light olive gray secondary hue to medium gray with brownish gray secondary hues; soft and fragile to firm and moderately hard; irregular, finely ground up cuttings; silty to clayey to slightly gritty texture; dull, earthy to slightly sparkly luster; poor to fair cohesiveness; poor adhesiveness; non calcareous; siltstone commonly grades between grayish brown sandy siltstone/ silty sandstone. Coal (10750' - 10765') = black with dark brownish black and dark grayish black secondary hues; hard to brittle; platy to flaky to massive and blocky; planar fracture dominant with conchoidal and birdeye common; smooth to slightly silty texture; glassy to slightly earthy luster bituminous; trace resinite/ amber along bedding planes; common to abundant, vigorous outgassing in larger fragments. Kenai Loop #4 19 Tuffaceous Sandstone/ Conglomeratic Sand/ Conglomerate/ Sand (10800' - 10930') = medium to medium light gray; disaggregated loose sand with soft hydrated tuffaceous sandstone and scattered hard silica cemented sandstone; subangular to subrounded and angular; fine upper to medium lower and fine lower predominate with increasing larger grains to granule with depth; scattered moderately rounded pebble fragments; predominantly translucent white to smoky and clear quartz/ volcanics with 20 to 30% medium to dark gray and gray-green lithics; trace black lithic/ mineral grains; matrix supported in soft hydrophilic white ash; trace very fine grain porous sandstone; interbedded with tuffaceous claystone/ siltstone, ash carbonaceous shale and coal. Coal/ Carbonaceous Shale (10930' - 11000') = black with dark brownish black secondary hues; hard and brittle; platy to blocky; planar fracture dominant with conchoidal and birdeye common; smooth to slightly silty texture; glassy to slightly earthy luster; bituminous; coal grades to very dark brown carbonaceous shale; firm; earthy; trace to common outgassing bubbles observed in larger fragments; trace resinite/ amber along bedding planes. Sand/ Conglomeratic Sand (11000' - 11070') = medium light to light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray, black, greenish gray and yellowish green; very fine upper to very coarse upper with 4mm fragments, dominantly fine lower to medium lower; angular to subangular; poor to fair sorting; dominantly unconsolidated with trace silica cemented grains and ashy grayish white tuff supported grains; very fragile to pulverulent; non calcareous. Sand/ Conglomeratic Sand/ Sandstone (11070' - 11140') = medium to medium light gray overall with clear to translucent quartz and volcanic glass dominant with abundant multicolored liths, light to dark gray, black and light greenish gray; very fine upper to trace very coarse upper, dominantly fine upper to medium upper; angular to subangular; poor to fair sorting; dominantly disaggregated with trace silica cemented sandstone; fine grain; hard to brittle; trace to common coal beds throughout. Coal/ Carbonaceous Shale (11140' - 11200') = black to very dark gray and gray-brown; hard to firm; hackly in part; abundant conchoidal fracture/ cleat; slight to moderate outgassing when fresh persists for 60 minutes+; shale is subfissile; slightly to very carbonaceous; silty throughout; grades to red brown carbonaceous siltstone; trace amber; occurs as moderate to thick beds with thinner tuffaceous sand/ silt. Sandstone/ Tuffaceous Sand (11200' - 11300’) = medium to medium light gray; brownish secondary hue in part; moderately well sorted; fine upper to medium lower and fine lower with scattered medium upper and coarse; subangular to subangular and angular; translucent white to smoky and clear quartz/ volcanics; 30 to 40 % medium to dark gray mineral/ lithics; trace varicolored grains; common to abundant fine to medium grain very silty greywacke sandstone; abundant coarse ash blebs; microbedded with abundant carbonaceous microlamina; abundant thin ash interbeds; occasional very thin coals; very slightly calcareous. Sandstone/ Sandstone Conglomerate/ Conglomerate (11300' - 11396') = medium to medium light gray; hard to very firm and disaggregated; subangular to sub-rounded and angular; fine upper to medium lower and medium upper; trace to common coarse and granule; scattered small pebble fragments; translucent white to clear quartz/ volcanics with trace to common dark mafic mineral/ lithics; trace green and orange grains; generally matrix supported in fine white ash; interbedded with tuffaceous siltstone, claystone and ash; trace calcareous ash. Kenai Loop 1-4 3.2 Sampling Program SAMPLE MANIFEST : Buccaneer Alaska Operations, LLC Kenai Loop 1-4: Boxed Washed and Dried Samples 21 Boxes Total: 3 Sets of 7 BOXES Set Type and Purpose Interval Frequency Distribution A Washed and Dried Reference Samples 3060’ – 9550 9550 – 11396’ 30’ Intervals 20’ Intervals David Doherty Buccaneer Alaska 952 Echo Lane suite 420 Houston, Texas 77024 B Washed and Dried Reference Samples 3060’ – 9550 9550 – 11396’ 30’ Intervals 20’ Intervals David Doherty Buccaneer Alaska 952 Echo Lane suite 420 Houston, Texas 77024 C Washed and Dried Reference Samples 3060 - 9550 9550 – 11396’ 30’ Intervals 20’ Intervals AOGCC Attn: Howard Okland 333 W. 7 th Ave. suite 100 Anchorage, AK 99501 Kenai Loop 1-4 21 4 DRILLING DATA 4.1 Daily Activity Summary 8/4/2013: Canrig rigged up, waiting on final repairs to rig before spud. 8/5/2013: Spudding until top drive problems around 12am. Rig continues to fix problem. 8/6/2013: Replace hose on hydraulic, and clean up hydraulic leak. Drill from 190-310.36 MD. Service rig and clean up at 9:30 am. R/U to P/U BHA to work on hydraulic elevators. P/U BHA and had wrong threads. P/U new MTR and test #3 pump. Calibrated LWD block height. 8/7/2013: PJSM circulate to 301' MD. #1 generator shutdown. Fired back up generator and Baker Hughes had troubleshooting with trailer. Drilling from 301'-550' MD. Drilled 550'-1044' MD. Slide 1044'-1063'MD. Drill 1063'- 1170'MD. Slide 1170'-1198'MD. Drill 1198'-1297'MD. Slide 1297'-1330'MD. 8/8/2013: Drill from 1424'-1431' MD. Slide from 1431'-1468' MD. Drill from 1468'-1556' MD. Slide from 1556'- 1599' MD. Drill from 1599'-1990' MD. Circulate hole clean. POOH from 1990'-1360' MD. Clean up floor and RIH to 1990' MD. Wash down to 1990' MD. Slide from 1990'-2013' MD. Drill from 2013'-2118' MD. Slide from 2118'-2143' MD. Drill from 2143'-2304' MD. Slide from 2304'-2321' MD. Drill from 2321'-2431' MD. Slide from 2431'-2355' MD. Drill from 2355'-2494' MD. Slide from 2494-2510' MD. Drill from 2510'-2807' MD. Fix coupler #2 pump. Drill from 2807'-3035' MD. 8/9/2013: Drill from 2998'-3065' MD. Circulated hole clean and pump sweep. POOH #5 stands. Pump slug. POOH to 2680' MD. Download tool data and laid BHA down. Clean rig floor. Fill pipe and wash to 2973' MD. Circulate, pump sweep 45BBL, pump pill 30BBL. POOH from 3065' MD to surface. 8/10/2013: L/D bit sub and XO-STD back heavyweight. Service rig until 2:00 am. Change bales and R/U casers. Safety meeting with Weatherford. Run 10 3/4" casing to 1150' MD. Pick up casing from 1150' MD to 3059' MD. R/U and circulate. Change out bails and R/U to run drill pipe in casing. TIH with flow stinger to 204' MD. 8/11/2013: RIH with 5" drill pipe and stinger. Stab in float and circulate. R/U cementers-safety meeting with Baker Hughes. Test lines and pump cement. Circulate casing after unstinging. Clean stacks and rinse surface equipment. Flush annular, cellar and work bag. POOH from 2978' MD. Take down diverter line and cut casing. 8/12/2013: Cutting casing and laying it down. N/D flow nipple, N/D annular, N/D speed spool and starter head. Cut conductor, casing, and install well head. Weld well head on and test 1500psi for ten minutes. Nipple up set adapter spool, spacer spool, and wait on truck to move BOP. Stack up BOP. 8/13/2013: Hammer up stack and R/U hoses. Open door to check upper & lower PRS. Install 5" rams, upper, VAR, and lower. R/U choke hose. Nipple up choke, kill, flowline, turnback, HCR, R/U test pump, and super choke. Testing BOP to insure state test. 8/14/2013: Test B.O.P: (I.S.) kill 2, 7, 5- (O.S.) kill safety valve, upper (P.R) 6, 8, 9-HCR, (I.S.) choke-low P.R., and blind 3, 4. Laid down test plug and install wear ring. R/O test equipment. Install zurk on T.D. from warrior recall. R/U wireline. Wireline hit bridge @ 315’ MD. R/U wireline. Strap and number 114 joints 5” drill pipe on rack. M/U and RIH with BHA. P/U 11 joints drill pipe, Kelly up circulate 1000 strokes. P/U drill pipe 42 joints and break circulation at 620 strokes. P/U drill pipe and tagged top of cement 2969.16’ MD. P/U 74 joints drill pipe. Circulate mud and M.P.# 1&2 at 10056 strokes. Kenai Loop 1-4 22 8/15/2013: Circulate and condition mud. TOOH and strap out from 2970' MD. Hold safety meeting with Schlumberger. R/U wireline and run bond logs. Generator down (Blackout). Wireline (cement bond log) to 2973' MD. P/U 5" drill pipe (24 joints). 8/16/2013 : TOOH pipe picked up. Troubleshoot electric problems at driller console. P/U drill pipe and rack them. Service rig. W.O.O, added 2 1/2 gallons of oil to rotary table, worked on rig audit, cleaned out suction screens on all mud pumps, and pump liner inventory. Prep generator motor for removal. Pressure wash and flush loader radiator and R/U equipment from BOP test. Work on installing whip CK and safety cables on hoses. Organizing parts in connex. R/U power to derrick light. 8/17/2013: R/U to test BOP. Waiting on tester from state. Rig organize and adjust trans #3 M.P. Change out ODS tugger rope and clean cellar. Tighten bolts on stack, work on generator, prep generator #2 and MP #3 transmission from shipment. Change out test joint to shorter test stand. Change out leaking grease on manual choke valve. Test BOP (250psi low)/(2500psi high). Test annular, (250psi low)/(5000psi high) on all other tests. 8/18/2013: Koomy test, blind reams, and CMVS-3, 4, 7. R/D test equipment and B/D choke. R/U to run BHA. P/U BHA. Load source, M/U HWDP, and function test down hole tools. RIH with 5” drill pipe strapping out of derrick. Break circulation at 1500’ MD. RIH to 2960’ MD. Circulate to condition mud from casing test. Test casing for 30 minutes at 3000psi. Drill out float collar @ 2973’ MD and cement from 2969’ MD to 3060’ MD. 8/19/2013: Drill cement from 3000’ MD to shoe and 3085’ MD. Circulate bottom up. Line up and perform FIT test. ECD check FIT. Hold safety meeting and displace mud. Drill ahead from 3085’ MD to 3855’ MD. Drilling ahead; rotating and sliding as direction Baker Rep from 3855’- 4045’ MD. Drilling ahead from 4095’-4450’ MD and sliding as directed. 8/20/2013: Drilling from 4450’-4611’ MD. Sliding as needed. Circulate to clean hole. TOOH to shoe. Rig service. TIH to 4548’ MD. Wash down to 4609. Drill from 4611’-4738’ MD. Drilling ahead from 4738’-5053’ MD. Drilling from 5053’-5380’ MD. Sliding as directed by Baker Rep. 8/21/2013: Drill from 5380’-5809’ MD and sliding as needed. Circulate hole clean. TOOH to 4300’ MD. TIH to 5300’ MD. RIH from 5306’-5809’ MD. Wash down stand #79 to 5811’ MD. Drill ahead, sliding as directed, drill from 5811’-5997’ MD, ROT 60rpms, and 500pp. Drill to 5997’-6187’ MD. 8/22/2013: Drilling ahead from 6187’-6501’ MD and sliding as direct by Baker Hughes. Drilling ahead from 6501’-6692’ MD. Drilling ahead from 6692’-6755’ MD. Circulate bottom up for short trip. POOH to 5500’ MD. Service top drive and carrier. RIH to 6754 and drill to 6895’ MD. 8/23/2013: Drilling from 6895’-6915’ MD. Slide from 6915’-6928’ MD. Drill from 6928’-6958’ MD. Slide from 6958’-6968’MD. Drill from 6968’-6979’ MD. Pumps #1 and #2 went down. P/U and circulate while working pipe with #3 mud pump at 74 spm/260psi. Repairing cooling tower for hydraulics. Got pumps back online and tested both. Drilling ahead from 6979’-7007’ MD. Worked on saver-sub. Drill ahead from 7007’-7133’ MD. Drilling slide pills. Drilling ahead from 7133’-7323’ MD and circulated hole clean for one hour. Short wiper trip from 7323’-6450’ MD. RIH from 6450’-7008’ MD. 8/24/2013: RIH F/2008-7261 Wash Down 7261-7324.Drilling Ahead F/7324'-/7541. Troubleshooting #2 Shaker Motor/Circ & Working Pipe. #2 M.P. @ 66spm 300 psi 20 rpm 6K torque. Circulate & Reciprocate w/Repairing Shaker. Shut DN Pump, Monitor Well (Static) POOH F/7541'-T/6692'. Pumped 20 bbl Dry Job - 10.8 ppg. POOH F/6,692'-T/3,057 (Shoe). POOH F/3,057'-T/862' Kenai Loop 1-4 23 8/25/2013: POOH from 862’ MD to BHA. Unload radioactive source and data. Break down mud motor. Drain stack and pull wearing. R/U test joint and set test plug. Test BOPE, annular, lower pipe rams, mud manifold kill, inside & outside kill, TIW, lower Kelly, upper Kelly, dart, and homey test. Test blind rams, R/D test joint, and pull test plug. Set in WR, L/D test joint, fill stack, monitor well, and R/U line. P/U mud motor, M/U BHA, and load nuclear source. Surface test mud motor at 405 gal/min; rotating 20 RPMS. RIH to 1523’ MD and displacement not right. Monitor well. RIH from 1523’-3026’ MD and fill pipe. Circulate across top monitor for losses. Adjust derrick and monitor wells. 8/26/2013: Finish leveling derrick, reset C.O.M, and monitoring well. RIH from 3038’-3070’ MD. Test MWD tools. RIH from 3070’-7448’ MD. Work through bridge. Circulate and condition mud from 7448’ MD. Ream and wash down from 7448’-7541’ MD with 254spm, 1800psi, and 40rpm. Drilling ahead from 7541’-7607’ MD. Drill ahead from 7607’-7702’ MD. Drill ahead from 7702’-7774’MD. Drill ahead from 7774’-7891’MD. Drill ahead from 7891’-7954’ MD. Slide from 7954’-7972’ MD. Drill from 7972-8000’ MD. 8/27/2013: Slide from 8205’-8226’ MD. Drill ahead from 8226’-8281’ MD (ROT 60rpm, WOB 7-9k). Slide from 8281’-8302’ MD. Tight while back reaming. Drilled ahead from 8302’-8345’ MD (ROT 60rpm, WOB 8-10k). Slide from 8345-8365’ MD (WOB 4-5k). Drill ahead 8365-8411’ MD (WOB 5-8k). Slide from 8411-8431’ MD. Drill ahead 8431’-8460- MD (ROT 60rpm). 8/28/2013: Drill from 8460’-8472’ MD. Slide from 8472’-8495’ MD. Drill from 8495’-8536’ MD Slide from 8536’- 8561’ MD. Drill from 8561’-8591’ MD. Slide from 8599’-8624’ MD. Drill from 8624’-8648’ MD. Change out shaker screen from 120’s & 100’s to 140’s & 120’s. Drill from 8648’-8670’ MD. Slide from 8670’-8690’MD. Drill from 8690’-8726’ MD. Slide from 8726’-8747’ MD. Drill from 8747’-8774’ MD. Circulate bottom up and monitor well. POOH five stands, pump pill, and POOH. Tight at 7891’, 7829’, 7766’, 7640’ MD. POOH to 7577’ MD. TIH to 8712’ MD. Wash 8712’ to 8774’ MD. 8/29/2013: Finish reaming 8712’-8774’ MD. Trouble shoot mud saver valve. Drill from 8774’-8789’ MD. Slide from 8789’-8809’ MD. Drill from 8809’-8850’ MD. Slide from 8850’-8864’ MD. Drill from 8864’-8915’ MD. Slide from 8915’-8932’ MD. Drill from 8932’-8976’ MD. Slide from 8976’-8992’ MD. Drill from 8992’-9042’ MD. Slide from 9042’-9064’ MD. Drill from 9064’-9105’ MD. Slide from 9105’-9134’ MD. Drill from 9134’-9168’ MD. Slide from 9168’-9173’. 8/30/2013: Slide from 9173’-9190’ MD. Drill from 9190’-9200’ MD. Clean and change shakers screens. Slide from 9200’-9211’ MD. Drill 9211’-9230’ MD. Slide from 9230’-9235’ MD. Drill 9235’-9278’ MD. Slide from 9278’-9289’ MD. Drill from 9289’-9550’ MD. Circulate sweep around and check flow. Pump out from 9550’- 9218 and rotate out. Pumped with one pump from 9218’-8884’ MD. POOH from 8884’-7950’ MD. TIH from 7950’-9426’ MD. Wash from 9426’-9550’ MD. Pump sweep. 8/31/2013: Finish pumping high viscosity sweep. Pump out from 9550’-8775’ MD and rotate. From 8775’-8397’ MD no pump and no rotating. Flow pump 20 BBL. L/D drill pipe from 8397-7135’ MD and tight at 7394’ MD. Pump 20 BBL. L/D drill pipe from 7135’-5636’ MD. Displacement with 31 BBL. L/D drill pipe from 5636’-307’ MD. Clean flow TIH from 307’-1540’ MD. L/D drill pipe from 1540’MD to BHA. L/D BHA, unload source, and download data. 9/1/2013: Download data and L/D BHA. Pull wear ring. P/U landing joint and 5” inch. Change out lower pipe rams. R/U test joint and test rams at 250L & 3000H. (PJSM) Slip and cut drilling line. R/U casing equipment. Make up valves on swedge and function. Run casing and make up S-track. P/U casing to 3053’MD. Circulate casing volume (140 BBL). P/U casing from 3053’-3291’MD. Kenai Loop 1-4 24 9/2/2013: RIH with 7 5/8” casing from 3297’-6984’ MD with 26 centralizers every third joint. RIH from 6984’- 7507’ MD with 7 5/8” casing. Circulate bottoms up at 7507’ MD. Flow check and RIH from 7507’-8512’ MD. Circulate bottom up at 8512’ MD. Run casing from 8512’-9187’ MD. Wash casing from 9187’-9474’ MD. Circulate through gas buster (1500 unit of gas). Turn off gas buster and circulate out gas and air. R/D Weatherford elevators drain and ring stack. Land casing, R/D Weatherford elevators, and circulate tools. Safety meeting, test lines to 3000psi, pump 30 BBL, spacer 10.3ppg, and 245BBL class “G” cement. 9/3/2013: Finish pumping cement (245 BBL, 15.8 PPG). Class “G” pumped (5.8 BBL) flush then drop displacement plug and chase with (428 BBL), drill mud (9.8 PPG), bumped plug (500 PSI). Circulate pressure held for 10 minutes. Drop bomb to open DV tool. Wait 45 minutes to get down. Open with (750 PSI). Circulate bottoms up (100 SPM). No cement came back. Pump DV tool plug down (4900 STK). Tool closed (1100 PSI). Pressure up to (1500 PSI) and held for 10 minutes. Bleed pressure off. No flow. R/D Bakers cement head and pull landing joint. Change bails, change out elevators, and bowls from 4”. R/D stabbing board. R/U test joint and set pack off (5K). Run in and lock test to (5K) for ten minutes. Change lower pipe rams to 4”. Change swabs to 4”, fix finger on board, load 4” drill pipe on racks and strap. Put top drive rails together. R/U and test BOP. 9/4/2013: Finish testing BOPs. Rig up to pick up pipe. Trip into hole with 4" heavy weight pipe, sub and roller bit to 4996'. Drill through plug at 500'. Trip into the hole to 9387'. Circulate bottoms up plus 14000 strokes. Test casing to 4000 psi for 30 minutes 9/5/2013: Finish casing test to 4000 psi for 30 minutes. Good test. Troubleshoot top drive. Stand back 4 stands of drill pipe and pick up single out of the pipe rack. Run into hole to tag cement at 9393'. Drill cement and shoe track to 9525'. Pack off and stuck. Work pipe and pull heavy till free. Circulate and clean hole. Pump and circulate pill followed by dry job. Level the derrick then pull out of the hole from 9490' to BHA. Clean floor and service the rig fo0r cement loggers 9/6/2013: Service the rig and prep for cement loggers. Rig up cement bond loggers. Run into hole with wireline and run cement bond log. Rig down wireline. Run into hole with dumb iron, re-run bit #4 and jars to 9570’. Wash hole to 9553’ Drill from 9553’ to 9570’. Circulate 5000 strokes. Pull out of the hole 2 stands and circulate bottoms up. Perform FIT test to 14.5 ppg/MWE. Trip into hole to 9570’. Washed the last 60’. Drill to 9679’. Stand back and pump dry job. Pull out of the hole. 9/7/2013 : Continue pulling out of the hole from6048' to surface. Flow check the well and clean rig floor. Lay down tools and begin pick up/make up BHA. Trip into hole on 4" drill pipe to 9477' MD. Kelly up and break circulation. Begin circulating and conditioning mud. 9/8/2013 : Circulate and condition mud. Wash down to 9575'. Drill / slide from 9575' to10389'. 9/9/2013 : Drill/ slide from 10389' to 10803'. Circulate bottoms up, lots of coal in cuttings, dime to quarter size. Pull out of the hole to 9404'. Encountered tight spots from 10362 to 10045'. Service rig. Pick up 16 joints of 4" drill pipe. Run into hole with 4". Wash from 9730 to 9919' and 10615 to 10803' Drill ahead to 10837'. 9/10/2013: Drill/slide from10837 to 11260'. New planned TD no deeper than 11390'. 9/11/2013 : Drill from 11260’ to 11375’. Pump high viscosity sweep. Circulate bottoms up. Decision made to drill an additional 20 feet. Pick up 1 single and drill new hole to 11396’. Mix and pump high viscosity sweep. Circulate bottoms up. Pull out of the hole to 240’ laying down MWD. Kenai Loop 1-4 25 9/12/2013 : Continue lay down BHA and MWD. Download MWD. Rig up and test equipment and test BOPs. Rig down test equipment. Rig up Schlumberger wireline. Run into hole with Schlumberger wireline. Wireline stacked out at the casing shoe. Pull out of the hole with wireline and pick up BHA. Run into hole to wipe for wireline run 9/13/2013 : Run into hole to 9412'. Circulate bottoms up 177u gas. Service top drive. Continue circulation. Wash/ream to 11180'. Max gas at 9595' 780u. 9/14/3012 : Wash/ream to 11323'. Circulate bottoms up. Trip out of the hole to 9912'. Pump 40bbl high viscosity sweep. Recovered about 3 bbls cuttings varying from silt to dime size. Circulate 1.5 bottoms up. Pull out of the hole to 9463' and circulate bottoms up. Mix and pump 20bbl dry job and pull out of the hole to surface laying down tools. 9/15/2013: Run Schlumberger wireline to 9780’. Unable to get deeper than 9780’. Pull out of the hole with wireline tools. Run into hole with 4” pipe and reaming BHA to shoe. Wash and ream from 9498’ to 10860’. Maximum gas 683units. 9/16/2013: Wash and ream from 10870’ to 11396’. . Pump 2, 40bbl high viscosity sweeps. (110-130 vis). Cuttings recovered were silt to quarter size. Mix and pump 11ppg weighted sweep with recovered material in the silt to small chip size. Circulated until shakers were clean. Weighted up from 10ppg to 10.3ppg MW E. Circulate hole clean. Pull out of the hole to 9470’ back-reaming as necessary. Circulate hole clean. Service top drive and crown. Run into hole from 9452’ to bottom at 11396’; tight spots from 10780’ to 11396’. Pump high viscosity sweep. Circulate hole clean. Pull out of the hole from 11396’ to 9465’. Pump 20bbl dry job and pull out of the hole from 9465’ to 8277’. 9/17/2013: Trip out of the hole from 8273’ to surface. Lay down bit, subs and 1 joint HWDP. Clean floor & pull wear ring. Monitor well. Rig up0 and test Variables, rams on 4 ½” and annular (annular to 250psi for 5 minutes, 2500 for 5 minutes, variables 250psi for 5 minutes and 500psi for 5 minutes). Install wear ring and rig down test equipment. Change out elevators. Rig up W eatherford casing equipment and 4 ½” handling equipment. PJSM for running liner. Run into hole with 47 joints of 4 ½” liner fill pipe every 10 joints to 2090’. Make up hanger and setting tool. Fill hanger with fluid. Rig Down. Run into hole with 10 stands of HWDP and 30 stands of 4” drill pipe to 4655’ filling pipe every 20 stands. Running into hole at 30 to 45 seconds per stand. 9/18/2013: Run into hole with liner to 9450’. Fill pipe and circulate bottoms up. Pick up PUP sub and lay down I joint of drill pipe, PUP sub = 24.58’. Get parameters and run into hole to 10802’. Continue running into hole with 4 ½” liner from 10802’ to 11396’, TD. Make up cement head. Circulate bottoms up, 12765 strokes. Rig up Baker for cement job. PJSM with Baker then pressure test cement lines. Pump cement chasing with 129 bbls mud. Sheared out liner and set hangar at 9273’. Circulate bottoms up at 7500 strokes. Lay down cement head and 1 joint of drill pipe. Pull out of the hole from 9273’ to 9070’. 9/19/2013: Pull out of the hole from 9070’ to 6234’. Pump 20 bbl dry job. Adjusted torque tube and changed out dies in tongs. Pull out of the hole from 6234’ to 2099’, 147 stands in the derrick. Pre job safety meeting and lay down 4” HWDP and 4” drill pipe. Lay down Baker setting tool. Pull the wear ring, rig up test joint and fill stack. Test BOPs; annular 250/2500 psi all other test 250/5000 psi. Rig down test equipment and rig up Weatherford to run 2 7/8” drill pipe. Change out elevators. Prep floor to pick up 2 7/8” drill pipe joints. Make up tools (X-O). Make up junk mill/scraper BHA. Run into hole picking up 2 7/8” drill pipe to 1306’. Kenai Loop 1-4 26 9/20/2013: Finish picking up 2 7/8” drill pipe, 58 joints total. Rig down Weatherford power tongs. Rig down 2 7/8” elevators. Pick up 7” scraper and changeover subs. Run into hole from 1819’ to 5920’. Service rig and work on spinners. Circulate at 5920’, bottoms up at 160 spm and 1250 psi. Run into hole from 5920’ to 9320’.Kelly up and circulate bottoms up 200 spm and 1700 psi. Run into hole from 9320’ to 10830’.and tagged up. Kelly up and circulate at 10833’ 100 spm and 900 psi. Washed down from 10830’ to 10998’ TD. Circulate and build completion brine. Slip and cut drilling line. Shut down pumps and filter brine. 9/21/2013: Filtering Brine. Displacing / drilling with 9.6ppg brine; 400 bbl high viscosity sweep with 60 bbl fresh water spacer at 200 spm – 1500 psi. Filtering brine while circulating the hole volume; 200 spm – 2500 psi with 50 micron sox (filters). Change to 100 micron sox and filter brine at 10996’; 200 psi – 2600 psi. Continue filtering brine while circulating 250 gal/minute at 2650 psi. Change to 50 micron sox and continue filtering brine at 10996’ 9/22/2013: Circulate at 191 spm and 2600 psi filtering brine with 50 mu sox. Attempt pressure test casing pumping fluid away at 20 spm and 3200 psi. Pull out of the hole from 10996’ to 9000’. Monitor well static. Pull out of the hole from 9000’ to BHA. Total displacement 57 bbls. Rig up Weatherford. Lay down BHA and pick up 2 7/8” elevators. Rack 2 7/8” drill pipe in derrick. Lay down scraper BHA. Rig up wireline. Run into hole with wireline. Tagged bottom 10977’ wireline depth. Pull out of the hole. Make up second run BHA on wireline (Bond Log) and run into hole. Pull out of the hole with wireline. Lay down bond log BHA and rig down wireline. Rig up Weatherford and run into hole with 2 7/8” drill pipe and RTTS BHA/1813’. Rig down Weatherford. Rig up to run 4” drill pipe and run into hole with same to 2320’. Broke hydraulic hoses on elevators. Changed out hoses. 9/23/2013: Repair broken hose on hydraulic elevators. Run into hole from 2320’ to 5910’ with RTTS. Service rig. Pump out trip tank. Replace guard on hydraulic elevators. Run into hole from 5910’ to 9314’ with RTTS. Kelly up and break circulation. Set RTTS at 9304’. Pressured up annulus. Started injecting at 35 spm/3200 psi. Set RTTS again at 9376’. Run into hole to 10580’. Kelly up at 10517’. Break circulation, 75 spm and 400 psi. Set RTTS at 10530’, test – no good back side. Pull out of the hole from 10530’ to 7490’. Pump 15 bbl dry job. Pull out of the hole from 7490’ to 1813’. Rig up Weatherford and 2 7/8” pipe handling equipment to rack back 2 7/8” drill pipe. Pull out of the hole from 1813’ to BHA. Lay down RTTS. PJSM and lubricate rig while waiting on RTTS tool re-build. Make up re-built RTTS to 2 7/8” drill pipe. Run into hole to 1813’. 9/24/2013: Rig Down Weatherford and 32 7/8 pipe handling equipment. Run into hole with 4 ½” RTTS from 1813 to 9318’. Kelly up and set RTTS at 9300’. Pressure up below RTTS 4000 psi, shut pipe rams and tested back – result 35 spm and 3100 psi, injection rate 1.03 bbl/min. Pump 20 bbl dry job. Blow down top drive and choke manifold. PJSM and pull out of the hole 9310’. Displacement = 45 bbls. Rig up Weatherford and 2 7/8” pipe handling equipment. Pull out of the hole with 2 7/8” drill pipe from 1813’ to BHA. Lay down RTTS and rig down Weatherford. Service rig; Organize BOP connex; housekeeping. Rig up wireline and run into hole with bridge plug. Set bridge plug at 9900’ wire line depth. Pull out of the hole with wireline and lay down setting tool. Rig up 5” lubricator. Run into hole with perforating guns (5 shots). Fired guns between 9870’ and 9872’. Pull out of the hole and lay down guns. Monitor hole (static). Rig up to run Retainer. 9/25/2013: Run into hole with composite cement retainer on wireline to 9860’. Set retainer. Wireline out of the hole. Monitor well. Rig up Weatherford tongs. Housekeeping/rig maintenance. Run into hole with composite cement retainer on wireline and set at 9857.5’, bottom of retainer is at 9860’. Pull out of the hole with wireline and rig down. Make up stinger and run into hole to 1815’. Rig down Weatherford and rig up 4” pipe handling equipment. Run into hole from 1815’ to 9857’ and tag. Lay down 1 joint. Rig up 5” PUP/Baker. Hold safety meeting and test lines to 5Kpsi/pump rate 3bbl/1500 psi Baker truck malfunction. Repair Baker truck. Circulate 3bbl/min 15’ above seal assembly. Pump 5bbl lead, 30.1 bbl cement and 5bbl water. Displace with 90bbl brine. 145 sacks cement at 9857’. Circulate bottoms up. Mix and pump pill. Lay down 1 joint and break down circulating assembly Kenai Loop 1-4 27 9/26/2013: Pull out of the hole with stinger from 9825’ to 6548’. Monitor for gain/loss every 20 stands. Work on hydraulic elevators. Pull out of the hole from 6598’ to 1815’. Rig down 4” pipe handling equipment. Rig up Weatherford 2 7/8” pipe handling equipment. Pull out of the hole from 1815’ and lay down stinger. Rig down Weatherford and pull wear ring. Pick up test joint and fill stack. Test BOPs. Upper and lower pipe rams leaking. Repair and re-test, Upper rams holding, lower rams Fail test. Open bottom doors with Weatherford tools and Vetco Gray could not remove bolt. DCR. 9/27/2013: Continue replace/repair and test BOPs. Good test on upper rams. Test casing to 4000 psi for 30 minutes. Nipple down/up replacing lower rams. Continue testing BOPs. 9/28/2013: Test BOPE. Lower pipe ram, 2 7/8” pipe in upper ram 250/5000 psi. Rig down test. Se t wear ring. Rig up hose to trip tank and bleed line. Rig up Weatherford.; Make up BHA. Run into hole with mill and motor to 1817’. Rig down Weatherford and 2 7/8” pipe handling equipment. Rig up 4” pipe handling equipment. Run into hole from 1817’ to 9764’. Filled at 3078’. Slip 8 raps on drum. Wash from 9764’ to 9811’. Tag cement. Drill cement from 9811’ to 9849’ and tag retainer. Mill retainer from 9849’ to 9855’. Wash from 9855’ to 9886’. Mix and pump sweep. 9/29/2013: Pull out of the hole from 9855’ to 1817’. Lay down 4” pipe handling equipment. Pick up Weatherford and 2 7/8” pipe handling equipment. Pull out of the hole to surface and stand back BHA. Rig down Weatherford pipe handling equipment. Rig up wireline and run into hole with CBL tools. Run CBL from 9855’ and pull out of the hole. Lay down wireline tools and rig down wireline. Pick up Weatherford pipe handling equipment. Run into hole with milling BHA and 2 7/8” drill pipe. 9/30/2013: Run into hole with mill and motor from 3267’ to 9823’. Kelly up and wash from 9823’ to 9887’. Mill from 9889’ to 9895’. Trip into hole from 9895’ to 10996’. Pump high viscosity sweep. Pull out of the hole from 10996’ to 4026’. 10/01/2013: Pull out of the hole from 4026’ to 1817’. Rig down 4” pipe handling tools. Rig up Weatherford 2 7/8” pipe equipment. Pull out of the hole from 1817’. Lay down 4 joints of 2 7/8” drill pipe. Break down motor and mill. Rig Up Schlumberger wireline. Run into hole with Schlumberger wireline 3 3/8” Neutron Gamma ray log. Retrieve Schlumberger wireline log and rig down Schlumberger. Run into hole with Scrapers to 1685’. Rig down Weatherford and 2 7/8” pipe handling tools. Rig up 4” pipe equipment. Make up BHA and run into hole from 1751’ to10891’. Wash from 10891’ to 10921’. Pump sweep and circulate bottoms up. Pump pill and pull out of the hole laying down 4” singles to 5080’. 10/02/2013: Lay down 14 joints of 4” drill pipe. Replace hose on hydraulic elevators. Pull out of the hole laying down 4” drill pipe from 4166’ to 1720’. Break down jars and scraper. Rig down 4” pipe equipment. Rig up Weatherford 2 7/8” pipe equipment. Lay down 54 joints of 2 7/8” drill pipe, scraper and mill. Clean and organize floor. Rig up wireline (Pollard) and run into hole with 3.82” gauge ring – 9800’. PJSM and pick up perforating guns. Finish picking up perforating gun assembly. Run into hole with perforating gun assembly on wireline and set at 9715’. Pull wear ring. Rig up and run 2 7/8” tubing to 100’. Change out tongs. Run 2 7/8” tubing from 100’ to 3833’. Kenai Loop 1-4 28 10/03/2013: Lubricate rig. Inspect and service rig equipment. Continue running in hole with 2 7/8” tubular from 3833’ to 8017’. Install chemical injection mandrel. Rig up Pollard to run ¼” control line. Band same to mandrel. Continue running into hole upper completion; band control line every other joint at top of collar. Pick up/make up SSSV: test same to 6000 psi for 15 minutes. Continue running in hole to 9667’ MD, 31 bands in the hole. Make up circulating swedge and wash down to 9701’ MD, no tag. Pick up 79K, 50-67K. Rig up to circulate. Wash down and tag at 9732’. Make up hangar assembly – 4.3’ PUP and test valve assembly/plum control lines and test (34 bands in hole). Rig up low torque valves to circulate. Circulate/pump 400 bbl, 4 drums conquer, 15 gal Busan biocide. Rig up Baker and hold safety meeting. Pressure test lines to 5000 psi. Pump nitrogen and displace 47 bbls – 2700 psi. Land hangar. set lock downs and run Weatherford. Test casing to 2000 psi for 30 minutes. Rig down casing test equipment. 10/04/2013: Begin testing well. Rig down logging unit. Kenai Loop 1-4 29 4.2 Surveys Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 20.8 0 332.90 20.80 0 0 0 0 242.47 0.40 332.90 242.47 0.69 -0.35 -0.65 0.18 303.23 0.14 321.91 303.23 0.93 -0.49 -0.89 0.44 362.76 0.26 331.57 362.76 1.11 -0.60 -1.07 0.21 422.57 0.14 358.02 422.57 1.30 -0.67 -1.22 0.25 484.31 0.11 259.46 484.31 1.36 -0.73 -1.31 0.31 546.66 0.19 15.26 546.66 1.45 -0.76 -1.38 0.42 609.33 0.09 14.09 609.33 1.60 -0.72 -1.42 0.17 670.50 0.17 9.59 670.50 1.74 -0.70 -1.46 0.14 729.85 0.36 75.90 729.85 1.87 -0.50 -1.36 0.56 793.27 0.34 71.55 793.26 1.98 -0.13 -1.09 0.05 856.09 0.34 93.76 856.08 2.03 0.24 -0.79 0.21 918.44 0.46 93.11 918.43 2.00 0.67 -0.40 0.19 982.63 0.59 86.27 982.62 2.01 1.26 0.11 0.22 1045.01 1.25 76.23 1044.99 2.19 2.24 0.87 1.09 1108.38 1.44 74.01 1108.34 2.58 3.68 1.93 0.31 1171.78 2.09 80.66 1171.71 2.98 5.59 3.39 1.07 1233.65 2.24 82.76 1233.54 3.32 7.90 5.24 0.27 1297.84 2.75 94.37 1297.67 3.36 10.68 7.64 1.11 1360.84 2.76 91.34 1360.60 3.21 13.70 10.34 0.23 1424.53 3.00 88.54 1424.20 3.22 16.90 13.13 0.44 1487.55 3.77 91.18 1487.11 3.22 20.63 16.37 1.25 1550.41 4.44 90.66 1549.81 3.15 25.13 20.32 1.06 1613.94 5.16 92.87 1613.12 2.97 30.44 25.03 1.17 1676.88 5.35 93.91 1675.79 2.63 36.20 30.21 0.34 1739.87 5.31 95.01 1738.51 2.18 42.04 35.52 0.17 1802.85 5.43 96.30 1801.21 1.60 47.91 40.91 0.27 1866.80 5.47 96.69 1864.88 0.91 53.94 46.50 0.08 1930.05 5.38 97.50 1927.84 0.17 59.87 52.03 0.18 1993.33 4.56 93.47 1990.88 -0.37 65.33 57.04 1.41 2055.22 4.09 90.56 2052.60 -0.54 70.00 61.19 0.84 2117.65 3.20 86.56 2114.90 -0.46 73.97 64.60 1.48 2181.04 2.69 83.15 2178.21 -0.17 77.21 67.29 0.85 2243.70 2.60 81.28 2240.80 0.22 80.08 69.59 0.21 2306.78 2.19 85.67 2303.82 0.53 82.69 71.71 0.71 2369.78 2.03 85.32 2366.78 0.71 85.00 73.63 0.24 2432.75 1.26 88.68 2429.73 0.81 86.81 75.15 1.23 Kenai Loop 1-4 30 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 2496.19 0.37 95.52 2493.16 0.81 87.71 75.94 1.41 2559.23 0.09 80.30 2556.20 0.80 87.96 76.17 0.45 2622.96 0.18 296.03 2619.93 0.85 87.92 76.11 0.41 2686.27 0.14 258.78 2683.24 0.88 87.76 75.95 0.17 2748.50 0.25 277.96 2745.47 0.88 87.55 75.77 0.20 2812.36 0.16 247.07 2809.33 0.87 87.34 75.59 0.22 2875.23 0.15 248.03 2872.20 0.80 87.18 75.48 0.01 2936.91 0.21 342.28 2933.88 0.88 87.07 75.35 0.43 2970.04 0.14 285.75 2967.01 0.95 87.01 75.27 0.52 3170.26 0.54 336.83 3167.22 1.89 86.41 74.28 0.23 3233.50 0.65 336.38 3230.46 2.49 86.15 73.75 0.16 3297.49 0.54 336.97 3294.44 3.10 85.88 73.22 0.17 3362.37 0.52 335.59 3359.32 3.65 85.64 72.74 0.03 3422.04 0.52 333.02 3418.99 4.13 85.35 72.25 0.04 3483.93 0.59 329.22 3480.88 4.66 85.06 71.74 0.13 3546.65 0.50 318.94 3543.60 5.14 84.72 71.20 0.21 3610.30 0.50 316.69 3607.24 5.56 84.34 70.67 0.03 3672.40 0.57 314.13 3669.34 5.97 83.94 70.12 0.11 3735.13 0.51 322.92 3732.07 6.41 83.55 69.56 0.16 3797.53 0.44 315.67 3794.47 6.80 83.21 69.08 0.15 3861.00 0.47 310.60 3857.93 7.14 82.84 68.59 0.08 3923.76 0.68 179.03 3920.69 6.93 82.66 68.52 1.68 3986.93 2.51 156.68 3983.84 5.29 83.21 69.82 3.00 4051.35 4.04 144.32 4048.15 2.15 85.09 73.00 2.61 4113.11 5.35 144.45 4109.70 -1.96 88.03 77.59 2.12 4175.19 6.54 142.04 4171.45 -7.10 91.89 83.47 1.95 4239.02 7.87 133.84 4234.77 -12.99 97.28 91.06 2.64 4302.01 9.19 129.61 4297.07 -19.19 104.27 100.20 2.32 4365.02 10.60 129.10 4359.14 -26.05 112.64 110.86 2.24 4427.96 11.12 128.32 4420.95 -33.46 121.89 122.56 0.86 4491.03 11.71 123.90 4482.77 -40.80 131.97 134.95 1.67 4553.71 12.63 122.30 4544.04 -48.01 143.04 148.14 1.56 4617.60 13.26 121.68 4606.31 -55.59 155.18 162.43 1.02 4681.99 14.50 120.75 4668.82 -63.59 168.39 177.87 1.95 4743.17 15.21 120.24 4727.96 -71.54 181.91 193.56 1.18 4806.01 17.67 121.10 4788.22 -80.62 197.20 211.33 3.94 4869.05 18.37 120.68 4848.17 -90.64 213.94 230.83 1.12 4932.37 18.36 121.12 4908.26 -100.88 231.05 250.78 0.22 4995.28 18.60 120.70 4967.93 -111.12 248.16 270.71 0.43 5057.44 18.65 120.95 5026.84 -121.30 265.21 290.56 0.15 5136.49 18.73 120.35 5101.71 -134.21 287.00 315.88 0.26 Kenai Loop 1-4 31 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 5185.69 18.66 121.59 5148.32 -142.32 300.52 331.65 0.82 5248.98 18.70 119.58 5208.28 -152.63 317.97 351.91 1.02 5311.56 18.63 118.71 5267.57 -162.39 335.46 371.94 0.45 5374.71 18.75 119.27 5327.38 -172.20 353.16 392.17 0.34 5438.31 18.80 119.18 5387.60 -182.19 371.03 412.64 0.09 5501.20 18.29 119.80 5447.23 -192.04 388.44 432.64 0.88 5563.33 18.11 120.17 5506.25 -201.73 405.24 452.04 0.34 5626.82 18.13 120.51 5566.59 -211.70 422.28 471.78 0.17 5690.98 18.39 120.72 5627.52 -221.94 439.58 491.88 0.41 5753.32 18.57 120.90 5686.65 -232.07 456.55 511.64 0.31 5817.39 18.78 121.38 5747.34 -242.67 474.11 532.14 0.40 5879.39 19.07 121.38 5805.99 -253.14 491.28 552.24 0.47 5942.04 18.58 120.08 5865.29 -263.47 508.65 572.45 1.03 6004.85 17.95 120.29 5924.94 -273.37 525.66 592.13 1.01 6067.84 17.86 120.94 5984.88 -283.23 542.33 611.49 0.35 6131.08 18.06 121.07 6045.04 -293.28 559.05 630.99 0.32 6193.27 18.13 121.79 6104.15 -303.35 575.53 650.29 0.38 6255.94 18.39 121.46 6163.66 -313.65 592.25 669.92 0.44 6319.66 18.16 120.95 6224.17 -324.00 609.34 689.89 0.45 6382.44 17.95 121.31 6283.86 -334.06 625.99 709.34 0.37 6445.38 18.15 121.83 6343.70 -344.27 642.61 728.82 0.41 6507.17 18.15 121.51 6402.41 -354.37 658.99 748.06 0.16 6571.84 18.25 122.06 6463.85 -365.01 676.16 768.24 0.31 6634.21 18.08 120.91 6523.11 -375.17 692.75 787.68 0.64 6694.56 17.95 119.65 6580.51 -384.58 708.86 806.34 0.68 6763.29 18.05 120.08 6645.87 -395.16 727.28 827.58 0.25 6825.01 18.14 120.55 6704.54 -404.83 743.83 846.75 0.28 6887.69 18.30 120.30 6764.07 -414.76 760.73 866.34 0.29 6950.55 17.21 118.60 6823.94 -424.19 777.42 885.51 1.92 7015.53 17.04 118.24 6886.04 -433.30 794.25 904.64 0.31 7077.79 17.17 118.72 6945.54 -442.03 810.34 922.95 0.31 7140.62 17.22 119.24 7005.57 -451.03 826.59 941.52 0.26 7204.70 17.39 118.87 7066.74 -460.28 843.25 960.58 0.32 7268.09 17.60 119.48 7127.21 -469.58 859.89 979.64 0.44 7329.06 17.73 119.74 7185.30 -478.72 875.98 998.15 0.25 7393.22 17.96 119.80 7246.37 -488.48 893.05 1017.81 0.36 7455.28 18.05 120.30 7305.39 -498.09 909.66 1037.00 0.29 7518.62 18.24 120.44 7365.58 -508.07 926.67 1056.72 0.29 7582.36 18.53 120.55 7426.07 -518.27 944.00 1076.82 0.47 7646.10 18.53 120.83 7486.50 -528.61 961.42 1097.07 0.14 7708.90 18.65 120.55 7546.02 -538.82 978.63 1117.09 0.24 7771.42 18.45 120.57 7605.29 -548.94 995.76 1136.98 0.32 Kenai Loop 1-4 32 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 7834.08 18.21 120.20 7664.77 -558.91 1012.76 1156.68 0.43 7897.80 18.26 119.98 7725.29 -568.90 1030.02 1176.62 0.13 7959.98 17.15 120.04 7784.53 -578.36 1046.39 1195.53 1.79 8023.24 16.23 119.73 7845.12 -587.41 1062.14 1213.69 1.45 8085.69 15.87 120.36 7905.14 -596.06 1077.09 1230.96 0.65 8148.83 15.77 120.04 7965.89 -604.71 1091.96 1248.17 0.20 8213.54 15.30 118.76 8028.23 -613.22 1107.06 1265.50 0.91 8276.42 14.43 119.38 8089.01 -621.06 1121.16 1281.63 1.40 8340.19 13.31 120.65 8150.92 -628.70 1134.40 1296.91 1.81 8402.72 12.38 119.47 8211.88 -635.67 1146.43 1310.82 1.55 8466.22 11.49 120.32 8274.01 -642.21 1157.81 1323.95 1.43 8528.42 10.40 121.61 8335.08 -648.28 1167.94 1335.75 1.80 8591.57 9.24 122.75 8397.30 -654.01 1177.06 1346.51 1.85 8654.61 8.03 123.56 8459.62 -659.18 1184.99 1355.96 1.94 8716.08 6.80 122.88 8520.58 -663.53 1191.62 1363.87 2.00 8780.73 5.79 122.71 8584.84 -667.37 1197.58 1370.95 1.55 8843.54 4.61 123.58 8647.39 -670.48 1202.35 1376.63 1.89 8907.74 4.37 125.16 8711.39 -673.32 1206.50 1381.64 0.42 8970.67 4.27 132.97 8774.14 -676.29 1210.17 1386.30 0.95 9033.98 3.87 138.35 8837.29 -679.50 1213.32 1390.62 0.87 9097.49 3.45 139.50 8900.67 -682.55 1215.98 1394.44 0.67 9159.99 2.39 136.58 8963.09 -684.93 1218.10 1397.46 1.72 9223.05 1.87 129.98 9026.11 -686.54 1219.79 1399.72 0.90 9284.52 1.59 130.93 9087.55 -687.75 1221.20 1401.54 0.47 9347.36 1.53 130.31 9150.37 -688.86 1222.50 1403.22 0.10 9411.67 1.61 133.00 9214.65 -690.03 1223.81 1404.94 0.17 9473.70 1.58 132.55 9276.66 -691.20 1225.08 1406.62 0.05 9493.06 1.64 130.50 9296.01 -691.56 1225.49 1407.15 0.42 9545.07 1.78 138.02 9348.00 -692.64 1226.59 1408.64 0.51 9607.56 2.12 142.94 9410.45 -694.28 1227.94 1410.62 0.62 9670.90 2.18 140.64 9473.75 -696.15 1229.41 1412.82 0.16 9733.77 2.32 140.25 9536.57 -698.05 1230.98 1415.13 0.23 9796.31 1.20 130.32 9599.08 -699.45 1232.29 1416.95 1.85 9859.04 1.43 131.30 9661.80 -700.39 1233.37 1418.36 0.36 9923.41 1.59 131.99 9726.14 -701.52 1234.64 1420.02 0.26 9985.74 1.61 135.89 9788.44 -702.72 1235.89 1421.70 0.18 10049.86 1.27 143.31 9852.55 -703.94 1236.94 1423.22 0.61 10112.81 1.40 145.80 9915.48 -705.13 1237.79 1424.54 0.23 10176.37 1.73 152.24 9979.01 -706.63 1238.67 1426.04 0.59 10240.34 1.94 150.56 10042.95 -708.42 1239.66 1427.79 0.34 10303.91 1.72 144.51 10106.49 -710.14 1240.74 1429.57 0.46 Kenai Loop 1-4 33 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 10366.69 1.75 148.34 10169.24 -711.72 1241.79 1431.27 0.19 10430.70 1.80 145.85 10233.22 -713.39 1242.87 1433.03 0.15 10494.04 1.48 149.58 10296.54 -714.92 1243.84 1434.63 0.54 10557.76 0.71 177.87 10360.24 -716.02 1244.27 1435.54 1.44 10620.20 0.95 162.60 10422.68 -716.90 1244.44 1436.12 0.52 10684.09 0.95 168.74 10486.56 -717.92 1244.70 1436.85 0.16 10746.48 1.39 168.69 10548.93 -719.17 1244.95 1437.68 0.71 10809.54 1.63 165.27 10611.97 -720.78 1245.33 1438.81 0.40 10873.18 1.70 157.95 10675.58 -722.53 1245.91 1440.18 0.35 10937.73 2.08 163.72 10740.10 -724.57 1246.62 1441.80 0.66 11000.06 2.00 160.32 10802.39 -726.68 1247.30 1443.43 0.23 11062.52 2.12 157.15 10864.81 -728.78 1248.12 1445.17 0.26 11125.76 2.04 155.67 10928.00 -730.88 1249.04 1447.01 0.15 11190.28 2.38 151.99 10992.48 -733.11 1250.14 1449.06 0.57 11251.77 2.46 153.37 11053.91 -735.42 1251.33 1451.24 0.16 11316.55 2.52 149.44 11118.63 -737.88 1252.68 1453.62 0.28 11338.77 2.71 151.07 11140.84 -738.76 1253.18 1454.50 0.92 **11396.00 2.71 151.07 11198.00 -741.13 1254.49 1456.80 0.00 ** Proj. Ke n a i L o o p 1 - 4 34 4. 3 B i t R e c o r d BI T NO . SI Z E “ TY P E S / N JE T S / TF A IN O U T F T H R S AV E RO P Ft / H R CONDITION 1 1 3 . 5 ” H C C M X L - 1 X 5 2 0 9 0 0 2 3 x 1 6 , 1 4 1 3 8 3 1 0 1 7 2 5 . 3 32 . 5 8 0 - 0 - N O - A - E - I - N O - B H A 1R R 1 1 3 . 5 ” H C C M X L - 1 X 5 2 0 9 0 0 2 3 x 1 6 , 1 4 3 1 0 3 0 3 5 2 7 2 5 2 1 . 0 8 12 9 . 3 1 - 2 - W T - A - E - I - N O - T D 1R R 2 1 3 . 5 ” H C C M X L - 1 X 5 2 0 9 0 0 2 3 x 1 6 , 1 4 3 0 3 5 3 0 6 5 3 0 1 - 2 - W T - A - E - I - N O - T D 2 9 7 / 8 H C C G X - C 1 X 5 2 1 0 2 1 5 4 x 2 0 3 0 6 5 3 0 6 5 0 0 0 C l e an out 3 9 7 / 8 H C C T 6 0 5 X 7 1 4 5 4 6 9 6 x 1 3 3 0 6 5 7 5 4 2 4 4 7 7 5 2 . 5 85 . 3 0 - 1 - C T - N - X - 1 - W T - R I G 3R R 1 9 7 / 8 H C C T 6 0 5 X 7 1 4 5 4 6 9 6 x 1 3 7 5 4 1 9 5 5 0 2 0 0 9 6 3 .4 3 1 . 7 1 - 3 - C T - N - X - 1 - W T - T D 4 6 ¾ H C C M X - 1 5 2 0 7 4 2 8 3 x 1 4 9 5 5 0 9 5 5 0 0 0 0 C l e a n o ut 4R R 1 6 ¾ H C C M X - 1 5 2 0 7 4 2 8 3 x 1 4 9 5 5 0 9 5 7 9 2 9 2 . 9 2 9 . 93 1 - 1 - N - A - 1 - I - N O - P R 5 6 ¾ H C C Q D 5 0 5 X 7 1 4 3 2 1 2 5 X 1 1 9 5 7 9 1 1 3 9 6 1 8 1 7 5 1 . 6 8 35 . 2 2 - 2 - A - C T - X - 1 - W T - T D 4R R 2 6 ¾ H C C M X - 1 5 2 0 7 4 2 8 3 x 1 4 1 1 3 9 6 1 1 3 9 6 R e a m i ng Ke n a i L o o p 1 - 4 35 4. 4 M u d R e c o r d Co n t r a c t o r : M I S w a c o Mu d T y p e : G e l / G e l e x S p u d M u d 1 3 8 ’ – 3 0 8 5 ’ ; K l a -S h i e l d 3 0 8 5 ’ – 1 1 3 9 6 ’ Da t e D e p t h MW (p p g ) VI S (s / q t ) PV Y P G e l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) MB T p H Cl (ml/l) Ca (ml/l) 8/ 5 / 2 0 1 3 1 9 0 8 . 6 7 8 2 4 1 9 8 / 1 9 / 2 8 1 5 1 / 4 / 9 6 T R 2 0 8 . 9 2 0 0 4 0 8/ 6 / 2 0 1 3 3 0 9 8 . 6 9 0 3 3 2 2 1 0 / 2 7 / 3 2 1 5 1 / 4 / 9 6 N / A 20 9 . 0 2 0 0 4 0 8/ 7 / 2 0 1 3 1 2 0 0 8 . 8 5 8 2 2 1 6 9 / 2 5 / 2 6 1 4 1 / 4 / 9 6 T R 2 0 9 . 1 2 0 0 4 0 8/ 8 / 2 0 1 3 2 8 0 0 9 . 2 8 5 2 5 1 4 6 / 2 0 / 2 6 8 1 / 6 / 9 4 . 2 5 2 3 9 . 3 2 0 0 4 0 8/ 9 / 2 0 1 3 3 0 6 5 9 . 0 5 0 1 7 3 1 / 3 / 8 8 . 5 1 / 4 / 9 6 T R 2 2 . 5 8 . 9 2 0 0 4 0 8/ 1 0 / 2 0 1 3 3 0 6 5 9 . 2 6 5 2 6 1 6 5 / 1 6 / 2 3 8 . 5 1 / 4 / 9 6 T R 2 2 . 5 8 . 3 2 0 0 4 0 8/ 1 1 / 2 0 1 3 3 0 6 5 9 . 0 4 3 2 5 1 5 4 / 1 4 / 2 0 8 . 5 1 / 4 / 9 6 T R 2 2 . 5 8 . 9 2 0 0 4 0 8/ 1 2 / 2 0 1 3 3 0 6 5 E m p t y P i t s 8/ 1 3 / 2 0 1 3 3 0 6 5 8 . 9 3 7 6 6 1 / 3 / 7 1 5 1 / 2 / 9 8 N / A 1 0 .6 45000 120 8/ 1 4 / 2 0 1 3 3 0 6 5 8 . 9 7 4 4 1 4 2 / 6 / 9 1 5 1 / 2 / 9 8 N / A 9 .3 45000 120 8/ 1 5 / 2 0 1 3 3 0 6 5 8 . 7 4 0 6 6 2 / 5 / 9 1 5 1 / 2 / 9 8 N / A 1 0 .0 38000 120 8/ 1 6 / 2 0 1 3 3 0 6 5 8 . 6 4 3 9 8 4 / 6 / 7 1 5 1 / 2 / 9 8 N / A 9 . 8 27000 120 8/ 1 7 / 2 0 1 3 3 0 6 5 8 . 6 4 8 9 1 1 6 / 8 / 1 0 1 1 1 / 3 / 9 7 N / A 9.6 27000 120 8/ 1 8 / 2 0 1 3 3 0 6 5 8 . 8 4 9 1 5 1 4 9 / 1 2 / 1 4 1 1 1 / 4 / 9 6 N / A 9 . 6 2 7 0 0 0 1 2 0 8/ 1 9 / 2 0 1 3 4 3 8 3 8 . 9 4 7 1 3 1 1 7 / 1 0 / 1 1 9 1 / 4 / 9 6 0 . 2 5 2 3 9 . 6 2 6 0 0 0 1 2 0 8/ 2 0 / 2 0 1 3 5 2 8 0 9 . 0 4 8 1 3 1 5 9 / 1 0 / 1 1 6 1 / 5 / 9 5 0 . 2 5 3 9 . 4 2 8 0 0 0 1 2 0 8/ 2 1 / 2 0 1 3 6 0 6 1 9 . 1 4 7 1 4 2 0 6 / 8 / 1 0 6 1 / 6 / 9 4 0 . 2 5 3 9 . 9 3 5 0 0 0 1 6 0 8/ 2 2 / 2 0 1 3 6 8 1 9 9 . 2 4 3 1 3 1 7 5 / 7 / 9 6 1 / 8 / 9 2 0 . 2 5 3 1 0 . 0 2 5 0 0 0 1 6 0 8/ 2 3 / 2 0 1 3 7 3 2 3 9 . 1 5 0 1 4 1 9 6 / 8 / 9 6 1 / 8 / 9 2 0 . 2 5 3 9 . 9 2 3 0 0 0 1 6 0 8/ 2 4 / 2 0 1 3 7 5 4 1 9 . 0 5 3 1 5 1 9 7 / 9 / 1 1 6 1 / 8 / 9 2 0 . 2 5 3 9 . 9 2 2 0 0 0 1 2 0 8/ 2 5 / 2 0 1 3 7 5 4 1 9 . 3 5 7 1 6 2 2 8 / 1 0 / 1 2 6 1 / 9 / 9 1 0 . 2 5 3 9 . 9 2 2 0 0 0 1 2 0 8/ 2 6 / 2 0 1 3 7 9 5 0 9 . 2 5 3 1 4 1 8 7 / 8 / 1 0 6 1 / 8 / 9 2 0 . 2 5 3 9 . 5 3 1 0 0 0 1 2 0 8/ 2 7 / 2 0 1 3 8 3 9 5 9 . 4 5 6 1 7 2 0 7 / 9 / 1 1 4 1 / 9 1 / 9 0 0 . 2 5 3 9 . 7 3 0 0 0 0 1 2 0 8/ 2 8 / 2 0 1 3 8 7 7 4 9 . 4 5 3 1 7 2 0 7 / 9 / 1 1 5 . 8 1 / 9 1 / 9 1 0 . 25 3 9 . 9 2 7 0 0 0 1 2 0 8/ 2 9 / 2 0 1 3 9 1 8 0 9 . 3 5 3 2 2 2 6 8 / 1 0 / 1 0 5 . 8 1 / 1 0 1 / 9 0 0. 2 5 3 9 . 6 2 5 0 0 0 1 0 0 8/ 3 0 / 2 0 1 3 9 5 5 0 9 . 4 5 5 2 4 2 9 8 / 1 1 / 1 2 5 1 / 9 1 / 9 0 0 . 2 5 3 9 . 7 2 7 0 0 0 1 0 0 8/ 3 1 / 2 0 1 3 9 5 5 0 9 . 4 5 4 1 8 1 6 6 / 7 / 9 5 . 3 1 / 8 1 / 9 1 0 . 2 5 3 9 . 6 2 7 0 0 0 1 0 0 Ke n a i L o o p 1 - 4 36 Co n t r a c t o r : M I S w a c o Mu d T y p e : G e l / G e l e x S p u d M u d 1 3 8 – 3 0 8 5 ’ ; K l a - Sh i e l d 3 0 8 5 ’ – 1 1 3 9 6 ’ Da t e D e p t h MW (p p g ) VI S (s / q t ) PV Y P G e l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) MB T p H Cl (ml/l) Ca (ml/l) 9/ 1 / 2 0 1 3 9 5 5 0 9 . 3 5 1 6 1 7 4 / 4 / 6 6 . 3 1 / 7 1 / 9 3 0 . 2 3 9 . 8 2 2 0 0 0 1 0 0 9/ 2 / 2 0 1 3 9 5 5 0 9 . 7 6 3 1 9 2 6 1 0 / 1 1 / 1 1 5 . 7 1 / 9 1 / 9 1 0 .2 3 9 . 3 2 1 0 0 0 8 0 9/ 3 / 2 0 1 3 9 5 5 0 9 . 5 4 8 1 5 1 8 8 / 9 / 9 5 . 8 1 / 7 . 5 1 / 9 2 0 . 2 2 . 5 9 . 2 1 8 5 0 0 1 0 0 9/ 4 / 2 0 1 3 9 5 5 0 9 . 6 5 8 1 5 2 1 9 / 1 0 / 1 1 6 . 0 1 / 8 . 5 1 / 9 1 0. 2 5 2 . 5 9 . 7 1 9 0 0 0 8 0 9/ 5 / 2 0 1 3 9 5 5 0 9 . 5 5 3 1 5 2 1 9 / 9 / 1 0 6 . 1 1 / 8 1 / 9 2 0 . 2 5 3 . 0 9 . 5 2 0 0 0 0 1 0 0 9/ 6 / 2 0 1 3 9 5 7 9 9 . 5 5 1 1 2 2 2 9 / 9 / 1 1 6 . 1 1 / 8 1 / 9 2 0 . 2 3 . 0 9 . 8 1 8 0 0 0 1 0 0 9/ 7 / 2 0 1 3 9 5 7 9 9 . 6 6 0 1 6 2 6 1 1 / 1 2 / 1 3 5 . 8 1 / 8 . 5 1 / 9 1 0 . 2 5 2 . 5 9 . 9 1 6 0 0 0 1 1 0 9/ 8 / 2 0 1 3 10 2 9 7 9 . 6 5 5 9 4 6 1 1 / 1 2 / 1 3 4 . 6 1 / 7 . 5 1 / 9 2 0 . 2 5 3 . 0 9 . 9 1 8 0 0 0 1 0 9/ 9 / 2 0 1 3 1 0 8 0 3 9 . 6 5 2 1 8 2 2 1 1 / 1 2 / 1 2 4 . 7 1 / 8 1 / 9 2 0. 2 5 2 . 5 9 . 6 1 8 0 0 0 1 0 0 9/ 1 0 / 2 0 1 3 1 1 1 9 8 9 . 6 5 4 1 8 2 2 1 1 / 1 2 / 1 2 4 . 8 1 / 9 1 / 9 1 0 . 2 5 2 . 2 5 9 . 6 1 4 0 0 0 8 0 9/ 1 1 / 2 0 1 3 1 1 3 9 6 9 . 6 5 5 2 5 2 2 1 1 / 1 3 / 1 4 4 . 5 1 / 9 1 / 9 1 0 . 2 5 2 . 5 9 . 6 1 2 0 0 0 1 0 0 9/ 1 2 / 2 0 1 3 1 1 3 9 6 9 . 6 5 6 2 5 2 3 1 1 / 1 2 / 1 3 4 . 5 1 / 9 1 / 9 1 0 . 2 5 2 . 5 9 . 6 1 2 0 0 0 1 0 0 9/ 1 3 / 2 0 1 3 1 1 3 9 6 9 . 6 5 9 2 2 2 2 1 2 / 1 3 / 1 4 4 . 5 1 / 9 1 / 9 0 0 . 2 5 2 . 5 9 . 8 1 4 0 0 0 1 0 0 9/ 1 4 / 2 0 1 3 1 1 3 9 6 1 0 . 0 6 9 2 8 2 5 1 2 / 1 4 / 1 5 4 . 5 1 / 9 1 / 9 0 0 . 2 5 2 . 5 9 . 0 1 4 0 0 0 1 0 0 9/ 1 5 / 2 0 1 3 1 1 3 9 6 1 0 . 0 7 0 2 9 2 6 1 1 / 1 2 / 1 4 4 . 5 1 / 9 1 / 9 0 0 . 2 5 2 . 5 9 . 9 1 4 0 0 0 1 0 0 9/ 1 6 / 2 0 1 3 1 1 3 9 6 1 0 . 3 7 0 2 8 2 6 1 1 / 1 2 / 8 1 4 4 . 5 1 / 9 1 / 90 0 . 2 5 2 . 5 1 0 . 1 1 4 0 0 0 1 0 0 9/ 1 7 / 2 0 1 3 1 1 3 9 6 9 . 1 7 4 2 4 2 1 1 1 / 1 1 / 1 2 4 . 5 1 / 8 1 / 9 1 0 . 2 5 2 . 5 9 . 9 1 4 0 0 0 1 0 0 9/ 1 8 / 2 0 1 3 1 1 3 9 6 9 . 2 6 5 2 7 2 2 1 1 / 1 3 / 1 4 4 . 5 1 / 8 1 / 9 1 0 . 2 5 2 . 5 9 . 6 1 4 0 0 0 1 0 0 9/ 1 9 / 2 0 1 3 1 1 3 9 6 9 . 3 6 6 2 6 2 3 1 2 / 1 3 / 1 4 4 . 4 1 / 9 1 / 9 1 0 . 2 5 2 . 5 9 . 5 1 4 0 0 0 1 0 0 9/ 2 0 / 2 0 1 3 1 1 3 9 6 9 . 6 9 . 5 1 3 4 0 0 0 9/ 2 1 / 2 0 1 3 1 1 3 9 6 9 . 6 2 6 1 0 . 5 1 3 4 0 0 0 9/ 2 2 / 2 0 1 3 1 1 3 9 6 9 . 6 2 6 1 0 . 5 1 3 4 0 0 0 9/ 2 3 / 2 0 1 3 1 1 3 9 6 9 . 6 2 6 1 0 . 3 1 3 4 0 0 0 9/ 2 4 / 2 0 1 3 1 1 3 9 6 9 . 6 2 6 1 0 . 4 1 3 4 0 0 0 9/ 2 5 / 2 0 1 3 1 1 3 9 6 9 . 5 2 6 1 1 . 1 1 3 2 0 0 0 9/ 2 6 / 2 0 1 3 1 1 3 9 6 9 . 6 2 6 1 0 . 3 1 3 4 0 0 0 9/ 2 7 / 2 0 1 3 1 1 3 9 6 9 . 6 2 7 1 0 . 3 1 3 4 0 0 0 9/ 2 8 / 2 0 1 3 1 1 3 9 6 9 . 6 2 9 1 0 . 3 1 3 4 0 0 0 9/ 2 9 / 2 0 1 3 1 1 3 9 6 9 . 6 2 7 1 0 . 3 1 3 4 0 0 0 9/ 3 0 / 2 0 1 3 1 1 3 9 6 9 . 6 2 9 1 0 . 9 1 3 4 0 0 0 Ke n a i L o o p 1 - 4 37 Co n t r a c t o r : M I S w a c o Mu d T y p e : G e l / G e l e x S p u d M u d 1 3 8 – 3 0 8 5 ’ ; K l a - Sh i e l d 3 0 8 5 ’ – 1 1 3 9 6 ’ Da t e D e p t h MW (p p g ) VI S (s / q t ) PV Y P G e l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) MB T p H Cl (ml/l) Ca (ml/l) 10 / 1 / 2 0 1 3 1 1 3 9 6 9 . 6 2 8 1 0 . 5 1 3 4 0 0 0 10 / 2 / 2 0 1 3 1 1 3 9 6 9 . 6 2 8 1 0 . 8 1 3 4 0 0 10 / 3 / 2 0 1 3 1 1 3 9 6 9 . 6 2 7 1 0 . 6 1 3 4 0 0 Ab b r e v i a t i o n s : MW = M u d W e i g h t V I S = F u n n e l V i s c o s i t y P V = P l a s t i c V i s c o s i t y Y P = Y i e l d P o i n t G e l s = G e l S t r e n g t h F L = W a t e r o r F i l t r a t e L o s s FC = F i l t e r C a k e O / W = O i l t o W a t e r r a t i o S o l s = S o l i d s S d = S a n d c o n t e n t M B T = M e t h y l e ne B l u e A l k , P m = A l k a l i n i t y , M u d p H = A c i d i t y / B a s i c i t y C l = C h l o r i d e s C a = H a r d ne s s C a l c i u m n r = N o t R e c o r d e d Ke n a i L o o p 1 - 4 38 4. 5 D r i l l i n g P r o g r e s s C h a r t D A Y S V E R S U S D E P T H 0 1 0 0 0 2 0 0 0 3 0 0 0 4 0 0 0 5 0 0 0 6 0 0 0 7 0 0 0 8 0 0 0 9 0 0 0 1 0 0 0 0 1 1 0 0 0 8 / 3 / 2 0 1 3 8 / 5 / 2 0 1 3 8 / 7 / 2 0 1 3 8 / 9 / 2 0 1 3 8 / 1 1 / 2 0 1 3 8 / 1 3 / 2 0 1 3 8 / 1 5 / 2 0 1 3 8 / 1 7 / 2 0 1 3 8 / 1 9 / 2 0 1 3 8 / 2 1 / 2 0 1 3 8 / 2 3 / 2 0 1 3 8 / 2 5 / 2 0 1 3 8 / 2 7 / 2 0 1 3 8 / 2 9 / 2 0 1 3 8 / 3 1 / 2 0 1 3 9 / 2 / 2 0 1 3 9 / 4 / 2 0 1 3 9 / 6 / 2 0 1 3 9 / 8 / 2 0 1 3 9 / 1 0 / 2 0 1 3 9 / 1 2 / 2 0 1 3 9 / 1 4 / 2 0 1 3 9 / 1 6 / 2 0 1 3 9 / 1 8 / 2 0 1 3 9 / 2 0 / 2 0 1 3 9 / 2 2 / 2 0 1 3 9 / 2 4 / 2 0 1 3 9/26/2013 9/28/2013 9/30/2013 10/2/2013 10/4/2013 D A T E D E P T H ( F T ) 13 1/2" Hole 9 7/8" Hole 6 3/4" Hole K e n a i L o o p 1 - 4 39 5 SHOW REPORTS 40 6 DAILY REPORTS