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Home My WebLink About208-1851a. Well Status:Oil SPLUG Other Abandoned Suspended 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development Exploratory GINJ WINJ WDSPL No. of Completions: __________________ Service Stratigraphic Test 2. Operator Name: 6. Date Comp., Susp., or 14. Permit to Drill Number / Sundry: Aband.: 3. Address: 7. Date Spudded: 15. API Number: 4a. Location of Well (Governmental Section): 8. Date TD Reached: 16. Well Name and Number: Surface: Top of Productive Interval: 9. Ref Elevations: KB: 17. Field / Pool(s): GL: 159.9 BF:159.9 Total Depth: 10. Plug Back Depth MD/TVD: 18. Property Designation: 4b. Location of Well (State Base Plane Coordinates, NAD 27): 11. Total Depth MD/TVD: 19. DNR Approval Number: Surface: x- y- Zone- 4 TPI: x- y- Zone- 12. SSSV Depth MD/TVD: 20. Thickness of Permafrost MD/TVD: Total Depth: x- y- Zone- 4 5. Directional or Inclination Survey: Yes (attached) No 13. Water Depth, if Offshore: 21. Re-drill/Lateral Top Window MD/TVD: Submit electronic information per 20 AAC 25.050 N/A (ft MSL) 22. Logs Obtained: N/A 23. BOTTOM 20" X56 101 13-3/8" K-55 2045 9-5/8" L-80 3,355' 24. Open to production or injection? Yes No 25. 26. Was hydraulic fracturing used during completion? Yes No DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. Date First Production: Method of Operation (Flowing, gas lift, etc.): Hours Tested: Production for Gas-MCF: Test Period Casing Press:Calculated Gas-MCF:Oil Gravity - API (corr): Press. 24-Hour Rate Sr Res EngSr Pet GeoSr Pet Eng Beaver Creek / Beluga Gas Pool N/A Oil-Bbl:Water-Bbl: Gas-Oil Ratio:Choke Size: Flow Tubing Water-Bbl: PRODUCTION TEST N/A Date of Test: Oil-Bbl: Per 20 AAC 25.283 (i)(2) attach electronic information 68 3,574' TOW 0 0 129.25 02097 40 319,258.0 TOP SETTING DEPTH MD 0 suspension, or abandonment, whichever occurs first. Types of logs to be listed include, but are not limited to: mud log, spontaneous potential, gamma ray, caliper, resistivity, porosity, magnetic resonance, dipmeter, formation tester, temperature, cement evaluation, casing collar locator, jewelry, and perforation record. Acronyms may be used. Attach a separate page if necessary 0 Driven0N/A 2/6/2009 CEMENTING RECORD N/A SETTING DEPTH TVD 2,435,795.0 TOP HOLE SIZE AMOUNT PULLED 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 317,441.0 2,434,136.0 N/A CASING WT. PER FT.GRADE 50-133-20584-00-00 Beaver Creek Unit (BCU) 18 FEDA 028083 1,055' FNL, 1,628' FWL, Sec 34 T7N, R10W, S.M. 747' FSL, 3,387' FEL, Sec 27 T7N, R10W, S.M. N/A 1/18/2009 9,244 MD / 8,689' TVD 3,574' MD / 3,355' TVD 177.9 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG Hilcorp Alaska, LLC WAG Gas 4/23/2022 208-185 / 322-023 3,574' MD / 3,355' TVD BOTTOM N/A SIZE DEPTH SET (MD) PACKER SET (MD/TVD) 658 sks, Type 1 67 sks 16" 91 sks 101 If Yes, list each interval open (MD/TVD of Top and Bottom; Perforation Size and Number; Date Perfd): ACID, FRACTURE, CEMENT SQUEEZE, ETC. CASING, LINER AND CEMENTING RECORD List all logs run and, pursuant to AS 31.05.030 and 20 AAC 25.071, submit all electronic data within 90 days of completion, 506 sks, Class G12-1/4" TUBING RECORD WINJ SPLUGOther Abandoned Suspended Stratigraphic Test No No (attached) No Form 10-407 Revised 3/2020 Submit within 30 days of Completion, Suspension, or Abandonment By James Brooks at 3:41 pm, Aug 15, 2022 Abandoned 4/23/2022 JSB RBDMS JSB 081622 xGDSR-8/17/22 208-185 WCB 04/17/2023 DLB 08/25/2022 Permit to Drill Number / Abandoned Beaver Creek Unit (BCU) 18 4/23/2022 Conventional Core(s): Yes No Sidewall Cores: 30. MD TVD Top of Productive Interval N/A Tyonek 31. List of Attachments: P&A Reports, Schematic 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Monty Myers Contact Name: Cody Dinger Drilling Manager Contact Email:cdinger@hilcorp.com Authorized Contact Phone: 907-777-8389 General: Item 1a: Item 1b: Item 4b: Item 9: Item 15: Item 19: Item 20: Item 22: Item 23: Item 24: Item 27: Item 28: Item 30: Item 31: The Kelly Bushing, Ground Level, and Base Flange 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. The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). 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. Pursuant to 20 AAC 25.070, attach to this form: well schematic diagram, summary of daily well operations, directional or inclination survey, and other tests as required including, but not limited to: core analysis, paleontological report, production or well test results. Report measured depth and true vertical thickness of permafrost. Provide MD and TVD for the top and base of permafrost in Box 29. Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. 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). Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Pursuant to 20 AAC 25.071, submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results, including, but not limited to: porosity, permeability, fluid saturation, fluid composition, fluid fluorescence, vitrinite reflectance, geochemical, or paleontology. Report the Division of Oil & Gas / Division of Mining Land and Water: Plan of Operations (LO/Region YY-123), Land Use Permit (LAS 12345), and/or Easement (ADL 123456) number. This form and the required attachments provide a complete and concise record for each well drilled 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. All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC, no matter when the analyses are conducted. Information to be attached includes, but is not limited to: summary of daily operations, wellbore schematic, directional or inclination survey, core analysis, paleontological report, production or well test results, per 20 AAC 25.070. 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. TPI (Top of Producing Interval). INSTRUCTIONS Authorized Name: Authorized Title: Signature w/Date: 29. GEOLOGIC MARKERS (List all formations and markers encountered): FORMATION TESTS Review the reporting requirements of 20 AAC 25.071 and, pursuant to AS 31.05.030, submit all electronic data within 90 days of completion, suspension, or abandonment, whichever occurs first. Well Class - Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Formation at total depth: If Yes, list formations and intervals cored (MD/TVD, From/To), and summarize lithology and presence of oil, gas or water (submit separate pages with this form, if needed). Submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results per 20 AAC 25.071. Yes No Well tested? Yes No 28. CORE DATA If yes, list intervals and formations tested, briefly summarizing test results. Attach separate pages to this form, if needed, and submit detailed test information, including reports, per 20 AAC 25.071. NAME Permafrost - Top Permafrost - Base No NoSidewall Cores: Yes No Form 10-407 Revised 3/2020 Submit within 30 days of Completion, Suspension, or Abandonment 8.15.2022Digitally signed by Monty M Myers DN: cn=Monty M Myers, c=US, o=Hilcorp Alaska, LLC, ou=Technical Services - AK Drilling, email=mmyers@hilcorp.com Reason: I am approving this document Date: 2022.08.15 08:26:42 -08'00' Monty M Myers Lease: State/Prov:Alaska Country:USA Angle/Perfs:2º 12/5/2014 3/30/2022 Maximum Deviation:29º @ 4,352' Date Completed:04/06/09 Ground Level (above MSL):RKB (above GL): Well Name & Number:Beaver Creek Unit #18 A - 028083 County or Parish:Kenai Peninsula Borough Revised By:Donna Ambruz Downhole Revision Date:Schematic Revision Date: Angle @KOP and Depth:2.7º / 100 ft @ 941' Excape System Details 6 Excape modules placed along w 1 chemical injection mandrel Red contol line Mods #2-6 Green control line Mod #1 & chemical injection mandrel The bottom @ 8,825' is open 8,190' Opens @ 9,545 psi Beluga Perfs MD (RKB): 2-1/2" 12 spf = 8,010'-8,020' (LB-20) (7/11/13) Module 6 = 8,020'-8,030' (LB-20) 2-1/2" 12 spf = 8,020'-8,030' (LB-20) (7/11/13) 2-1/2" 12 spf = 8,030'-8,037' (LB-20) (7/11/13) 2-1/2" 12 spf = 8,106'-8,110' (LB-21) (7/11/13) Module 5 = 8,110'-8,120' (LB-21) 2-1/2" 12 spf = 8,110'-8,120' (LB-21) (7/11/13) 2-1/2" 12 spf = 8,120'-8,140' (LB-21) (7/11/13) Module 4 = 8,460'-8,470' (LB-25) Module 3 = 8,559'-8,569' (LB-26) Module 2 = 8,695'-8,705' (LB-28) 3-1/2" TOC @ 6860' CBL (2/10/09) BC-18 Pad 3 1,055' FNL, 1,628' FWL, Sec. 34, T7N, R10W, S.M. TD 9,244' MD 8,689' TVD PBTD 5,950' MD 5,488' TVD Conductor 20" X56 129.25ppf Top Bottom MD 0' 101' Surface Casing 13-3/8" K-55 68 ppf BTC Top Bottom MD 0' 2,097' TVD 0' 2,045' 16" Hole Cmt w/ 658 sks (290 bbls) of 12.0 ppg, Type 1 cmt , 91 sks (40 bbls) cmt Intermediate Casing 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 7,612' TVD 0' 7,058' 12-1/4" Hole Cmt w/ 290 sks (171 bbls) of Class G Lead @ 10.5 ppg followed w/ 216 sks (45 bbls) of Class G Tail @ 15.8 ppg. Production Tubing 3-1/2" L-80 9.3 ppf EUE Mod Top Bottom MD 6,000' 9,230' TVD 5,520' 8,675' Permit #:208-185 API #:50-133-20584-00-S1 Prop. Des:A - 028083 KB elevation:181' (21' AGL) X: Y:Spud:1/18/2009 04:00 hrs TD:2/5/2009 13:30 hrs Rig Released:2/12/2009 06:00 hrs PA #:891008868A Chemical Injection Mandrel @ 8,174' MD (RKB) SCHEMATIC Tag @ 8,638' SLM (12/05/14) 2.25" DD Bailer LB-21 LB-20 Capillary Tubing 3/8" 2205 Stainless Steel Top Bottom MD 0' 0' TVD 0' 0' (***Pulled 04/08/2010***) Tree cxn: 6-1/2" Otis 9-5/8" TOC at ~3440' per CBL 3-1/2" CIBP at 7940' w 35' cmt top - TOC @ 7905' (2/18/22) 9-5/8" CIBP at 5950' (2/27/22) Jet Cut 3-1/2" tubing at 6000' 3-1/2" CIBP at 6895' w 35' cmt top - TOC @ 6793' (2/18/22) TOW @ 3,574' Activity Date Ops Summary 2/14/2022 Held PJSM and filled out permits. with Schlumberger coil crews,Rig up Schlumberger Coil tbg 1-3/4 equipment,Test Bops to 250 low and 3000 psi HI. _ Test witness waived by Jim Regg with AOGCC,Trouble shoot reel pressure adjustment problem, narrow trouble to be pressure valve in unit, will pull valve in unit in the morning, hook up ground thaw heater in Rain for rent tank. 2/15/2022 Fill out Permits and PJSM,Remove reel pressure adjustment valve, and trouble shoot same, did not find anything that could cause a malfunction in the valve,Install valve same results as before, troubleshooting hydraulic system,Schlumberger Tech arrived at location at 1300 hrs. trouble shooting unit & hydraulic system, found the reel Pilot pressure valve bad,unable to repair valve, but found replacement manual pilot valve, swapped out valve,Function reel, working ok, fuel up equipment SDFN 2/16/2022 Assemble at field office gather permits and held PJSM,Warm up equipment and finish installing internal coil connector, pull test to 12k (good test) make up 2" Jet flow nozzle, make up riser test break to 250 low for 5 minutes and 3000 hi for 10 minutes, open well with 138 psi on tbg "0" on IA,RIH with 2" jet flow nozzle on 1- 3/4 coil tbg tag bridge at 3696 ft.,Reel swivel leaking, change o-ring in swivel,Continue to fill reel with fluid getting returns tagged bridge at 3690 ft. ctm,Circulating work thru bridge at 3690 ft. continue washing pumping at 1.4 bpm at 2418 psi to 4016 ft.,Circulate hole clean at 4016 ft. CTM, mix 20 bbls of gel pill,Continue to wash in hole f/ 4016 ft. to 7951 ft. CTM, making several passed from 7951 ft. to 7890 ft. while circulating pumping gel sweeps, getting mud & sand back at return tank, making pick up each 150 ft. pumping at 1.4 bpm at 2349 psi,Circulate hole clean,Continue to wash down to 8000 ft. CTM 8005 RKB, circulate hole pumping at 1.4 bpm 2349 psi,Pooh with Coil tbg pumping at 1.4 bpm at 2340 psi, to 100 ft. CTM, unable to only POOH at 56 fpm, having problem with injector motor pressure, only could get 2500 psi, no over pull noted while pulling out of hole, no loss or gain of fluid, after reaching 100 ft shut down pump well static,Wait on and receive MOC from Schlumberger to continue pooh with wash nozzle,continue pooh checking swab valve every 15 ft. OOH swab valve close on tree, blow down reel and remove injector head install night cap 2/17/2022 Fill out permits and held PJSM and with Crew, continue to rig down coil tbg equipment, Schlumberger mechanic trouble shooting injector motor pressure problem, found problem to be adjustment on power pack motor, made adjustments check flow with flow meter (ok) load out equipment on trailers. Note notified Quinn Swayer with Alaska BLM about timing for setting 3.5 CIBP at 7940 in the 3.5 tbg Friday. 2/18/2022 2/18/2022 Fill out permits and held PJSM,Spot equipment & rig up on well test lubricator to 3000 psi, Alaska BLM inspector Quinn Swayer on location to witness the setting of CIBP, dumping cmt, and testing of the plug at 7940.,Open well "0"psi on tbg, RIH with Legacy oil tools 2.75 Big Boy Bridge plug for go 1-11/16 suitable for 3- 1/2", 5.5# to 10.2# tbg. rated 10,000 psi at 325 deg F (lot# 84049), while running in hole set down at 1050, 1770, & 1885 ft. pooh with 3.5 CIBP,RIH with 2.80- gauge ring & junk basket, to 8,028 ft. had one slight bobble at 1,920 ft. on way in hole with ga. ring, pooh with gauge ring with no problems, NOTE: had 6 small pieces of scale in junk basket.,RIH with Legacy oil tools 2.75 Big Boy Bridge plug for go 1-11/16 suitable for 3-1/5, 5.5# to 10.2# tbg. rated 10,000 psi at 325 deg F (lot# 84049), RIH setting CIBP at 7940 ft. tag plug after setting to verify it set. pooh lay down running tool,Make up 32 ft. of 2-1/2 cmt bailer, loaded with 6-1/2 gallons of 16.0 ppg cmt slurry, made two runs for a total of 13 gallons = 35 ft. of cmt on top of CIBP at 7940' Est top of cmt 7,905',Hook up pump, and fill tbg, pressure up on 3.5 tbg testing the 35 ft. of cmt EST top at 7,905' and the CIBP at 7,940' to 2000 psi for 30 minutes starting pressure 2015 psi ending pressure 1992 psi (Good test) Test witnessed by Alaska BLM inspector Quinn Swayer,Make up and RIH with Legacy oil tools part number 000-2750-000, 2.75" OD Big boy Bridge plug for GO 1-11/16 suitable for 3-1/2" 5.7 - 10.2 ppf tubing rated for 10,000 psi at 325 deg F lot number 90124, RIH setting CIBP at 6,828 ft. tagged plug after setting to verify it set pooh with no problems. Rig down for the night. 2/19/2022 Make out and sign permits and JSA note Alaska BLM Quinn Swayer on location to witness dumping the cmt on plug at 6828 and punching holes in TBG and being able to circulate thru holes .,Warm up equipment makeup 2-1/2 x 32 ft. dump bailer, make two runs with 6-1/2 gallons of 16.0 cmt slurry = 35 ft. cmt on top of CIBP at 6,828' Est top of cmt at 6,793 ft.,Made up & RIH with 2, 7 ft. wt. bars 1-11/16 CCL, 1-9/16 RTG 0- phase with 2 1-11/16 magnetic Decentralize, 20 holes, for 5 ft., punch holes in the 3.5 tbg at 6005 ft to 6010 ft. Pressure up to 600 psi on tbg punch holes, tbg pressure bleed f/ 600 to 400 psi, attempt to circ got returns on IA,RIH with 7" 1-11/16 WB, 1-11/16 CCL,1-11/16 Centralizer, 2" RCT, 1-7/16 Centralizer 21.5 over all 6' from CCL to cut, cut tbg at 6000 ft had good indication of cutter firing. pooh with cutter, cutter fired, circulate well with 8.4 ppg fluid, getting mud back on returns from IA,circulate well with 8.4 ppg fluid, pump 420 bbls of 8.4 water, Taking returns from IA to open top tank, at 4 bpm at 600 psi,RIH with 7 ft. - 1-11/16 WB, 1-11/16 CCL Centralizer, 2.5 Titan jet cutter assembly, made cut at 6000 ft. at end of tbg good indication of cutter firing pooh cutter fired,Rig down E line and move out same 2/21/2022 Filled out permits and JSA held PJSM., prep location, for rig,Hilcorp Safety team & Beaver Creek Production team held Site specific Orientation with the All- American Oilfield rig crew.,Continue to move in equipment, had some delays due to weather and road conditions. back drag location, lay out liner, remove grating from cellar, spot base beam, and level same, rig up landings on carrier. spot carrier on well, unable to set on base beam due to air bags not inflated, trouble shoot same, found air bag unseated, jack up carrier and set air bag, spot carrier on base beam. SDFN. 2/22/2022 PJSM - Continue to rig up Equipment, clear slush and water out of containment, pump out cellar, fill pits with water. Rig pump and return hoses, spot office trailer and get Communication working.,Reverse circ. well taking returns to open top tank at 3 bpm ICP = 200 PSI max pressure 470 psi, FCP = 190 psi, pumped total of 420 bbls 8.4 ppg water, with 8.7 ppg at return tank, monitor well Tubing on vacuum,,Set 3" type H Back pressure valve, pump out cellar,Nipple down tree & wing and lay out same,Nipple up 13-5/8 5m bops, spool, double and Annular. 2/23/2022 PJSM finish N/up 13-5/8 5m BOPE, install choke and kill lines, install koomey hoses, function test BOPE,install rig floor, and stairs, skirt in cellar and carrier make up 3-1/2 test joint.,Test BOPE's and related surface equipment to 250 low and 3000 psi hi. Test made with water and held 5 minutes on chart, AOGCC Jim Regg waived witness, and Allie Schoessler with BLM waived witness. Had one failed/ pass on blind rams, changed out two-way check, blinds tested ok, record closing times & pressures on BOPE.,Rig down test equipment install bail and elevators, M/up 3" spear, and spear into hanger, back out lock downs, pull hanger at 55k on weight indicator, continue to pooh with 46k to 48k pick up wt. back out cut joint, and lay out spear & cut jt. make up 10 ft. pup jt. and secure well for night, n (LAT/LONG): evation (RKB): 50-133-20584-00-00API #: Well Name: Field: County/State: BCU-018 Beaver Creek Hilcorp Energy Company Composite Report , AK Contractor AFE #: AFE $: Job Name:222-00201 BCU-18 ST Prep RWO Spud Date: g RIH setting CIBP at 6,828 ft. tagged pluggpg after setting to verify it set Continue to rig up Equipment, gp p gg ,Continue to wash down to 8000 ft. pg pg pg dump bailer, make two runs with 6-1/2 gallons of 16.0 cmt slurry = 35 ft. cmt on top g of CIBP at 6,828' Est top of cmt at 6,793 f jgygyg RIH setting CIBP at 7940 ft. tag plug after setting to verify it set. 35-ft cement dump bailed on CIBP at 6828'. -WCB pp p g pressure up on 3.5 tbg testing the 35 ft. of cmt EST top at 7,905' and the CIBP at 7,940' to 2000 psi for 30 minutes starting pressure 2015 psi ending pressureppgg p 1992 psi (Good test) Test witnessed by Alaska BLM inspector Quinn Swayer, Est top of cmt 7,905',Hp ppg cut tbg at 6000 ft had good indication of cutter firing. pooh with cutter, cutter fired, gpppp made cut at 6000 ft. at end of tbg good indication of cutter firing pooh cutter fired,Rig down E line pgy g M/up 3" spear, and spear into hanger, back out lock downs, pull hanger at 55k onpgqp weight indicator, continue to pooh with 46k to 48k pick up wt. b Filled out permits and JSA held PJSM., prep location, for rig,H 35-ft cement dump bailed on CIBP at 7940'. -WCB gp ,Make up 32 ft. of 2-1/2 cmt bailer, loaded with 6-1/2 p() g gpg gypy g gallons of 16.0 ppg cmt slurry, made two runs for a total of 13 gallons = 35 ft. of cmt on top of CIBP at 7940' ggpggy g ppg y g p 2/24/2022 Held PJSM, check well, 0 psi,Pooh with 3-1/2 tbg removing 2ea 1/4" control lines, and 1ea 3/8 cable cutting 1"stainless bands 3 per joint, remove 2ea 6-1/4" rigid centralizers/jt, having to break down stand to remove the centralizer from single racking back in derrick, f/ 6000 ft to 4680 ft. Had 8k overpull at 4680 ft.,Work pipe at this depth attempt to work pass this depth, slack back off to 4720 cut cables & control lines and secure to tubing.,Rig up to reverse circulate,Pump 30 bbl, lost suction on pump, trouble shoot same,Took suction pods apart on mud pump, found a piece of plastic under one suction valve.,Continue to pump 310 bbls reverse circulating at 3.5 bpm at 250 psi, RD reverse circ equipment.,Continue to pooh f/ 4720 to 4570 ft. (while pulling at 4680 had over 11k over pull), wt dropped off to 32k continue to pooh. normal over pull at 32k, secure well for night. 2/25/2022 Held PJSM, check well for pressure, 0 psi,Pooh f/ 4,570 ft. to 3,568 ft. with 2 control lines and 3/8 cable,Wire rope not riding the pipe out of the hole,Pooh f/ 3,568 ft. to 2,096 ft. pulling wire rope with hoist and cutting wire rope every 30 ft. spooling the control line on reel. taking off the ridgid centralizers, standing back 3.5 tbg in derrick, at 2096 ft. of pipe left in hole, found wire rope doubled back in hole, pulled wire 195 ft. out of hole with hoist, continue pulling wire out by hand 500 ft. total, Estimated length of wire rope still in hole 1500 ft.,Continue to pooh with 3.5 tbg f/ 2,096 ft. to 1840, spooling up 2 control lines removing rigid centralizers,Secure well for night. 2/26/2022 Held PJSM, Check well pressure 0 psi,Level Rig,Pooh f/ 1968 to 688 ft removing dual control line and ridged centralizers at 688 ft, found more 3/8" cable wrapped around pipe in knot.,Secure cable with tugger, continue to pooh racking back 3.5" tbg removing dual control line, pooh with cable with tugger while pulling pipe,OOH with pipe still have cable in hole, continue pooh with cable on tugger, total of 1500 ft. below cut,Clean up and rig down power tongs,Rig up Pollard slick line with 6.5 fluted centralizer with 8.25in-gauge ring to 5995 ft. WLM top of tbg. stub pooh rig down slick line secure well. 2/27/2022 PJSM with crew, Check well pressure 0 psi,Service rig and fix crown light, yellow jacket E-line fill out permits,Rig up E-line, RIH with 7.71" CIBP for 9-5/8" casing and set same at 5950 ft. ELM. POOH swap out tools. pick up and RIH w/ cement bond log tagging CIBP at. 5950 ft. logged up to surface, Rig down E-line.,Rig up to RIH with 3.5 tbg, & RIH to 5850, Rig up lay down machine to lay down pipe, secure well for night AOGCC waived witness for testing the CIBP at 5950 ft. 2/28/2022 Held PJSM and discussed plan forward with crew,SICP 0psi, Open well prepared to POOH,POOH, L/d 3-1/2" Tubing f/5,850' t/2,800',,M/u Circ eq. Pressure tested t/3000psi against CIBP set in the 9 5/8" Csg @ 5,950', charted MIT for 30mins-good test. R/d circ eq. Crew eat lunch while testing. AOGCC waived witness for MIT of CIBP.,Cont POOH L/d 3 1/2" Tbg f/2800' t/surface. Filling hole w/ pipe displacement w/8.4ppg SW. Emptied Rain4Rent tanks and pit, loaded pipe on trailers for transport,M/o Catwalk and pipe racks, R/d handing eq. and rig floor, N/d BOP stack, N/u Dry hole tree. Secured well, night rig watch on tower. NOTE: Estimating 45 SS Bands left in the hole. 3/1/2022 Held PJSM and discussed daily activities,R/d and put away circulating hoses, Removed winterization, Scoped down and lay over Derrick, prepared equipment and loaded on Trailers for Transport.,Weaver Bro's began hauling equipment to Swanson River, removed containment, cleaned and cleared location. RWO completed EL set the 9-5/8 CIBP & pulled CBL, but did not lay cement atop the CIBP. -WCB pp ,Continue to pooh with 3.5 tbg f/ 2,096 ft. to 1840, ,Rig up E-line, RIH with 7.71" CIBP for 9-5/8" casing and set same at 5950 ft. Pressure ppppp tested t/3000psi against CIBP set in the 9 5/8" Csg @ 5,950', charted MIT for 30mins-good test. AOGCC waived witnessing the MIT of the 9-5/8 CIBP. - WCB RIH w/ cement bond log tagging CIBP at. 5950 ft. logged up to surface, Rig down E-line.EL t th 95/8CIBP &g ll d CBL g p AOGCC waived witness for MIT of CIBP. ppg g g ,Secure cable with tugger, continue to pooh racking back 3.5" tbg removing dual control line, pooh with cable with tugger while pullingpp gg p g pipe,OOH with pipe still have cable in hole, continue pooh with cable on tugger, to Activity Date Ops Summary 4/12/2022 Cont. R/D Rig components, and cleaning/ organizing rig. Greased derrick pins, R/U lower pin HYD hoses to remove pins. Cont. w/ painting in boiler house. organized bolt bin. R/D air compressor room. Built steam isolation valves for hopper house #3. cont. securing derrick for move. cleaned and;organized change shack. R/D pit module roof lights. Vac'd out boiler water. Strapped down pit handrails. Removed shaker splash guards, installed keeper pins on cuttings box wind wall support rails. Completed EAM's on DWKS. Loaded out shaker screen conex. R/D alarms on pump house roofs.;Transported choke house and hurricane vac to Beaver creek staging pad. 4/13/2022 Staged felt and liner at BCU pad 3, loaded and transported upright water tank to Beaver Creek, cleaned rig water tank and cellar box on Pearl, re-staked well on Paxton pad, did line locate and started excavate with super sucker to look for well 5 electric lines, RD lights and handrails on doghouse.;Transported Sperry tools to Beaver Creek from Kalotsa, rig crew and Tool Push traveled to Beaver Creek to lay felt, liner and rig mats, shipped 4 more rig mats from Pearl to BC, loaded and shipped poorboy degasser, assorted equipment, aux fuel tank, HandyBerm and drill connex to BC from Pearl.;Finished laying rig mats at BC pad 3. Started and warmed up rig gen, powered up rig, cont. w/ general housekeeping around rig/pad. P/U sticks and felt scraps on Kalotsa, Paxton, Whiskey Gulch Pad. Broke tours w/ night crew @ 21:00 hrs. Half of the crew will return @ 06:00 hrs. to rig;and the other half will show up at the farm yard warehouse @ 06:30 hrs. Toolpushers traveled to BCU-18RD to confirm rig lay out measurements and get a visual on the area behind MP #2 (current well house).;Vac'd out remaining boiler water, cont. w/ housekeeping and organizing rig. R/U HYD lines, lowered roofs on pit modules 1-3. R/D all remaining electrical on pit modules. R/D HYD lines. Hauled trailers w/ CCI conex/timbers and water line/timbers to Beaver creek staging pad. 4/14/2022 Both crews on daylight shift, prepped and tore out boiler skid, stage same on edge of Pearl Pad, tore out, loaded and transported topdrive HPU skid and another load of 4 rig mats to Beaver Creek. Cleaned up exposed liner and felt, serviced 4 way valves on koomey unit, vac up large puddles on pad and;backdrag pad, utilize small amount of gravel on pad to fill in low spots. Checked draw works drum bearing for play. Crew at farm yard installed fuel pump on new aux fuel tank, prepped diverter vent line sections for paint, installed cabinets in rigs electrical connex. Hands at Beaver Creek cleared;more snow for office trailers, set last few rig mats in place.;Rest rig crews for the night, kept Motorman and night Push at rig for the night. CCI night rig support cont. dressing Pearl pad/road leading to pad, and removing water off pad. 4/15/2022 RD electric from gen skid to rig sub and doghouse, scoped down doghouse, RD change shacks and rig shop, loaded and transported catwalk to BCU, transported 2nd crane to Pearl pad, offloaded same, loaded up rig loader and implements, backhauled same to BCU, graded spot on BC pad 3 for office trailers;and setting rig mats now to park trailers on, sent BOP cradle to farmyard so rig’s BOP stack can be re-assembled on that to transport to BCU, rig crew plumbing and doing electrical work on new aux fuel tank and priming diverter vent line sections for paint, Expediter PU rental camp gen set and;transported to BCU, mud Engineer working with Steam on Wheels to thaw first dragon box of cuttings at G&I that came over from Beluga.;Rested rig crews for the night. Toolpusher and motorman watched over the rig during the night, and worked on EAM paper work. 4/16/2022 RD office trailers and comm tower, tore out rig shop, transported 6 trailers and shop to Beaver Creek, set 6 trailers and shop, spotted bang box and gen set, powered up office trailers-change shack and shop. Transported comm tower to Beaver Creek.;Installed HandyBerm around gen set. Assisted Well Head Rep with removal of dry hole tree and install of adaptor spool. Discussed with Lead Op on removing well house near back yard to allow bed truck to set pump module #2, cont buffing and priming diverter vent line, assemble BOP stack on cradle and;electrical on aux fuel tank at farmyard.;Rested rig crews for the night. Cont. w/ our rig night watch personal. CCI night rig support transported 3 dragon wagons from rig tenders dock to G&I and pushed back snow berms on Beaver creek pad #3. 4/17/2022 Traveled to Pearl Pad, start equipment, tore out gen skid, pits 3 and 2, jig and pump #2. Spot cranes and loaded gen skid with cranes. Tore out pit 1 and loaded with cranes. 1st non-CCI truck arrived, loaded pump #2 with cranes, wait on arrival of 4th truck which is non-CCI (arrived at 15:30).;Expediter and rig hands retrieved liner and dunnage from Beaver Creek, traveled to KGF G&I to check on building containment to park dragon boxes and trailers on. Rig crews still buffing, priming painting diverter vent line at Drilling Warehouse.;Installed lift plate on BOP stack and changed out bridle rigging on cradle, and lowered same for transport to rig, aux fuel tank electrical is complete. Moved to 4 rig mods off Pearl Pad to slow lane pull out on highway and hooked up trailer jeeps, staged for moving at 2AM.;Rested rig crews for the night, CCI and pilot cars transported 4 rig modules from Ninilchik to Beaver Creek @ 02:00 hrs. Currently off loading rig modules at Beaver creek pad #1 w/ cranes/winch truck. 4/18/2022 Traveled to Pearl Pad and tore out doghouse skid and pump #1, spotted cranes, picked and loaded derrick, carrier, sub, pit mod 3, and pump skid #1 on trailers, staged trucks for moving to Beaver Creek at 2AM. Started stacking rig mats and clean up liner/felt on Pearl pad. RU comm’s on pad 3 BCU.;Transported 1 pony wall from Pearl pad to BCU, truck returned to Pearl pad, loaded and transported 2nd pony wall to pad 3.;Rested rig crews for the night. Set pony walls over well, squared to rig mats. CCI night rig support transported two trailer w/ rig mats and another w/ IR HPU, light plant, and heater for cellar. Set IR HPU and heater inside pony walls. Permitted loads left Ninilchik at 02:00 hrs. First load;arrived at BC staging pad at 04:00 hrs. Spotted cranes and off loaded sub onto ground. Picked sub w/ winch truck. Currently waiting on 2 rig modules to arrive at staging pad for off load. n (LAT/LONG): evation (RKB): API #: Well Name: Field: County/State: BCU-018RD Beaver Creek Unit Hilcorp Energy Company Composite Report , Alaska Contractor AFE #: AFE $: Job Name:221-00038 BCU-18RD Drilling Spud Date: 4/19/2022 Offload pump #1 at staging pad, Move cranes to pad 3, Loaded one crane at Pearl pad for return, Pick and set Sub on pony walls, Pick and set carrier on sub, Pick and set derrick on carrier.;Pick and set Pit #1, Pick and set Pump #1, Pick and set Pit #2, Raise derrick to half mast, Pick and set HPU, Pick and set Pump #2, Pick and set Pit #3, Pick and set MGS. Continue connecting all modules electrical, Hydraulic and mud lines. Install wind walls with crane assistance. Pick and set;Generator #3. Lift MGS into drilling position. Lay felt and liner for catwalk and set same. Pick and set BOP cradle near cellar area. Hand off BOP stack from crane to Cellar cranes.;Installed both manual and HCR kill/choke valves on BOP stack. Cont. working on hooking up interconnects between modules, and R/U in the pits. Built mud docks, hauled in and stacked mud product . Cont. hauling misc. equip./tools from staging pad. R/U productions test pump to dry hole tree.;Performed 9-5/8" casing test down to CIBP @ 5950' WLM T/4000 psi for 30 min on chart (ok). Pumped in 7.36 bbls and Bled back 7.36 bbls. R/D and blew down productions test pump.;Finished R/D remainder of testing equip. N/D the integral wellhead cap, L/D shipping beams in sub. Tailed in BOP's on bridge cranes, bolted up BOP stack to well head. Installed flow box. Cont. w/ R/U on BOP's, pits, and interconnects through out the rig.;Laid over beaver slide onto rig floor. Transported service shacks, drilling conex, shaker screen conex and 400 bbl up right to BCU-18RD. At 04:00 hrs. CCI rig movers left staging area in Ninilchik w/ final 2 rig modules (Doghouse & boiler), and arrived at 06:00 hrs at BC Pad #1.;Currently offloading rig modules at BC pad #1 and cont. w/ R/U.;Hauled Solids to G&I 0 bbls Hauled to G&I Cumulative 0 bbls Hauled Fluid to G&I 0 bbls Hauled to G&I Cumulative 0 bbls Hauled cement to G&I 0 bbls Cumulative Cement to G&I 0 bbls Daily Down Hole Losses 0 bbls Cumulative Losses 0 bbls 4/20/2022 Continue to N/U BOP stack. Install hydraulic accumulator fittings into BOP stack. Pick and set Doghouse/ Accumulator and watertank skid. R/U hoses and scope up doghouse. R/U electrical, hydraulic and lights to doghouse. Pick and set Boiler house. R/U brake linkage and driveline from brake handle to;draworks, Pick & set third party shacks, R/U rig HPU, Take measurements for a short riser on BOP stack. R/U Pason, Lay down drill line, Kelly hose and service loop on rig floor. R/U stand pipe/ bleeder manifold. Sent 48 hour notice notification to BLM for BOPE Test at 10:29am.;Sent e-mail to AOGCC Jim Regg giving 48 hour notice for Initial BOPE test @ 10:32am.;R/U cameras. Mount upper torque tube to top section, Spool up drilling line, Install Handy Berm, Attach lower torque tube to upper torque tube and telescope derrick up. Confirm lock pins. Secure lower torque tube to derrick. Obtain RKB's, R/U Accumulator hoses to BOPE, Install new cellar grating,;Pick up and install Top Drive, Complete making up choke and kill line connections.;Changed out O-ring seals on TDS HYD lines. R/U Kelley hose & service loop to TDS. Energized koomey. Cont. R/U boiler system. Chained & centered stack. Installed flow nipple, flow line, and hole fill line. M/U saver sub to quill, and installed clamps. Cont. R/U in the pits and bring on water.;Brought handling equip to floor-Tongs, slips, bails, and elevators. R/U bails. Filled rig water tank and 400 bbl up right. Started building first batch of 6% KCL PHPA mud.;Crew change, held PTSM. Cont. R/U handling equip. Test TDS robotics. Cont. R/U air, steam, and control cables around rig. Tested BOP controls at koomey & doghouse panel (ok). Tested MP alarms and mud saver override alarms (ok). Staged subs, XO's, TIW, and dart valve on rig floor rack.;Brought over 3 pipe bunks from staging pad. Loaded ODS catwalk racks w/ 4.5" CDS 40 DP. Pulled flow riser on stack, trimmed back welded in coupler for fill up line for clearance. Installed test plug, M/U testing equip, flooded stack. Cont. building mud. Installed wall tarps on sub base.;Currently testing MP's and cont to work on rig acceptance check list.;Hauled Solids to G&I 0 bbls Hauled to G&I Cumulative 0 bbls Hauled Fluid to G&I 0 bbls Hauled to G&I Cumulative 0 bbls Hauled cement to G&I 0 bbls Cumulative Cement to G&I 0 bbls Daily Down Hole Losses 0 bbls Cumulative Losses 0 bbls 4/21/2022 Pump through open Pop-Offs and bleeders. Bump test hole fill pump. Perform weekly derrick inspection. Tighten output line on test pump. Flood remaining test equipment and perform 250 Low/ 4000 High shell test on BOPE equipment; Good Test. B/D choke. R/U and function test iron roughneck controls.;Flood and PT mudlines to 4000 psi. and B/D same, Install tarps on mast cylinders. Clean and organize Conex's. Fill and dtage up boiler. Strap CDS40 Drill Pipe on racks. Check Torque values between iron roughneck, tongs and top drive. Continue building 300 bbls 9.3ppg 6% PHPA mud.;Notified that BLM waived witness to initial BOPE test. 24 hour notification given to AOGCC from website of intent to test BOPE. Rig Accepted at 12:00pm.;Get steam going around rig and replace bad steam hoses. Set and test C.O.M. Continue building 9.3ppg KCL PHPA mud. Pressure wash and clean around rig. Install drain hoses in cellar area. Work on PM's. Check valve lash on MP #1 Engine. Re-configure liquid mud dock containment. Work with environmental;on Boiler Emissions Compliance. E-mail BLM with 48 hour notice of spud.;Cont. pressure washing & building mud. Cleaned and organized drilling conex. Changed filters on HYD unit. Gathered BHA for cleanout/Gauged run. Called AOGCC Jim Regg @ 19:15 hrs. Witness was waived on BOP test.;M/U test joint and set test plug. R/U testing equip. Filled stack , lines, and choke manifold. Purged out air.;Perform bi-weekly BOP test as per AOGCC & BLM regulations. BOP-250 Low/ 4000 High 5/10 min & Annular 250 Low/ 2500 High 5/10 min. Had no F/P. Quadco tested audio/visual on gas alarms (ok).;Pulled test pull, vac'd out stack, blew down lines and choke manifold. Greased choke manifold. Installed 9" wear ring, run in 2 lockdowns. Finished building 2nd batch of 6% KCL PHPA mud.;Serviced rig- Greased crown, blocks, TDS, IR, DWKS, brake linkage, and inspected drive shaft bolts.;Counted pipe on location. Staged drift assy. on rig floor. adjusted load collar on TDS. Strapped BHA components and obtained OD's & ID's.;M/U 8.5" drift run BHA #1- 8.5" PDC bit, bit sub/float, and XO. Started P/U and singled in the hole with 4.5" DP F/BHA #1 to current depth of 623'.;Hauled Solids to G&I 0 bbls Hauled to G&I Cumulative 0 bbls Hauled Fluid to G&I 0 bbls Hauled to G&I Cumulative 0 bbls Hauled cement to G&I 0 bbls Cumulative Cement to G&I 0 bbls Daily Down Hole Losses 0 bbls Cumulative Losses 0 bbls ppgqp ;Performed 9-5/8" casing test down to CIBP @ 5950' WLM T/4000 psi for 30 min on chart (ok). 4/22/2022 Continue RIH with 8-1/2" Drill Bit BHA #1 F/ 623' T/ 3624' picking up CDS40 drill pipe from catwalk.;Troubleshoot Pason EDR communications with Pason support. Had to swap antennas and re-assign configuration.;Continue RIH with 8-1/2" Drill Bit BHA #1 F/ 3624' T/ 5942' picking up CDS40 drill pipe from catwalk. Tagged CIBP at 5942'. PUW 113K SOW 99K, Calculated displacement observed for trip. E-Mail AOGCC for 24 hour notification of spud and FIT at 11:50am.;Break circulation and pump Hi-Vis sweep STS. 575 GPM with 1320psi SPP. Max gas peak at bottoms up was 1470 units.;Monitor Well, Static. POOH F/ 5942' T/ 5886' Break out Top Drive and blow down. POOH F/ 5886' T/ surface standing back drill pipe. Break out and L/D XO, bit sub and 8-1/2" cleanout bit. Calculated displacement observed for trip.;PJSM with E-Line crew, Rig up E-Line. Make up 9-5/8" CIBP and CCL to E-Line and run in hole T/3653', Logged up hole, 9-5/8" casing collar @ 3598' WLM. Logged on depth , set CIBP 6' above casing collar @ 3592' WLM. Tagged CIBP twice to confirm set depth. POOH w/ E-line, R/D and released AK-Eline.;At 18:30 hrs. the bearing on the fan hub on gen #2 came apart and contacted the radiator causing 2 gals of glycol to spill out into secondary containment. The spill was cleaned up from the secondary containment. Proper notification were made.;R/U testing equip. Tested 9-5/8" casing/CIBP T/4000 psi on chart for 30 min (ok). Lost 7 psi over 30 min. Pumped 4.55 bbls and bled back 4.5 bbls. B/D and R/D testing equip.;Held PJSM w/ Baker Rep and rig crew on M/U whipstock/milling assy BHA #2. M/U 8.5" milling assy. -Starter mill, lower mill, flex jt. upper mill, XO, and 1 jt. of HWDP. Carried scribe line from starter mill up. P/U 9-5/8" Gen 2 whipstock, inspected brass shear screw (x6) in trip anchor,;removed 1 shear screw leaving 5 screws in (3565 lbs to shear each screw). M/U starter mill to top of whipstock installing 35K shear bolt. RIH w/ whipstock/mills, M/U on top of HWDP-XO, float sub, DM & TM collar, and XO (Off set 292).;RIH out of the derrick F/103'-T/3512' at 45 fpm as per Baker Rep. Re-counted DP on location to double check count. P/U-59K S/O57K.;M/U TDS, broke circ. staged up pumps, GPM-457 SPP-782 psi P/U-75K S/O73K. Worked pipe and orientated 60° R high side as per HES DD. Cont. easing down and tagged CIBP w/ whip stock anchor @ 3596' DPM. Set down in 5K increments, sheared brass anchor screws w/ 20K set down (seen good;indication of setting). P/U 10K over S/O weight to 85K for good set verification . Set down 34K to shear whip stock lug. P/U 10' to verify released from ramp.;Held PJSM on displacing well over to 6% KCL PHPA mud. Pumped 20 bbl Hi-Vis spacer, followed by 9.3 ppg 6% KCL PHPA mud. Currently displacing well over to mud @ 3574'.;Hauled Solids to G&I 0 bbls Hauled to G&I Cumulative 0 bbls Hauled Fluid to G&I 0 bbls Hauled to G&I Cumulative 0 bbls Hauled cement to G&I 0 bbls Cumulative Cement to G&I 0 bbls Daily Down Hole Losses 0 bbls Cumulative Losses 0 bbls 4/23/2022 Mill Window F/ 3574' T/ 3595' First 2' at 1 foot per hour ROP, remaining window at 3 fph, 3K WOB 80 RPM 465 GPM 1025psi SPP 5k ft/lbs Off BTM TQ, 6.5K/ 10.5K on BTM TQ Top of Window at 3570' Bottom of Window at 3591'.;Continue milling rat hole below window with 8-1/2" milling assembly F/ 3595' T/ 3611'. 465 GPM, 1060 psi SPP, Diff 30 psi, WOB 8K, RPM 90, TQ 5.3K, Flow 36%, ROP 20 fph, PUW 75K, SOW 73K, ROT 72K. Dress window and drift with and without pumps. Pump Hi-Vis sweep. 465 GPM, 1050psi SPP, 40 RPM, 4K TQ.;Pull into window and rig up for FIT purge lines of air. Attempt to perform FIT pressure not holding. Troubleshoot and observe formation seeping fluid at a rate of 0.1285 BPH while monitoring at surf . Rig down and make up top drive. Pressure up to 430 psi. to attempt to squeeze LCM into formation.;Pressure dropped 200 psi in 15 minutes. Rig down and blow down choke and kill lines.;POOH with milling assembly F/ 3550' T/103', L/D MWD tools, XO's, and mills, 8.5" Upper window mill was a 1/16" out, lower window mill was engage, and the starter mill was 5/16" out (see photos in O -drive). Recovered 223 lbs of metal from milling. Cleaned & cleared rig floor. Calculated hole fill;P/U 4.5" CDS-40 mule shoe. RIH out of the derrick F/surface-T/3591'. Had calculated pipe displacement.;Circ. & conditioned mud while R/U HES cementers. GPM-320 SPP-260 psi P/U-77K S/O-67K.;Held PJSM w/ rig crew, HES cmt, CCI, Baroid, and night DSM. Balanced cmt plug- Pumped 2 bbls of water ahead and shutdown. Pressure tested cmt lines T/494 psi Low and T/2890 psi High (ok). Pumped 18.5 bbls of 10.5 ppg Tuned spacer@ 4 bpm (120 psi). Followed by 20 bbls of 15.8 ppg;Type I II cmt @ 4 bpm (175 psi). Pumped 5 bbls of 10.5 ppg Tuned spacer@ 3 bpm (12 psi). Displaced w/ 39 bbls of 9.3 ppg 6% KCL PHPA mud @ 6 bpm (112 psi) to balance plug. Shut down, opened bleeder on truck and checked for balance (ok). CIP @ 23:35 hrs.;R/D cementers. POOH w/ 7 stds at 30' per/min F/3591'-T/3155'. P/U- 77K S/O-67K.;Crew change, Held PTSM. Loaded 2 wiper balls into pipe, M/U TDS, CBU, GPM-400 psi SPP-335 psi. Had 5 bbls of Tune space return to surface. Shut down and lined up to squeeze cmt.;Flooded choke manifold, shut upper pipe rams. Performed cmt squeeze using MP. Pressured up T/440 psi, pressure dropped T/409 psi @ 5 min, (31 psi loss). Pressured up T/663 psi, pressure dropped T/634 psi @ 5 min, (31 psi loss). Pressed up T/802 psi, pressure dropped T/733 psi @ 5 min, (69 psi loss).;Pressured up T/1026 psi, pressure dropped T/896 psi @ 10 min, (130 psi loss). Pumped in 1.8 bbls and bled back .7 bbls;Flow checked well (static), blew down choke manifold, mudlines, and TDS. Turned elevators around.;POOH F/3155'-T/Mule shoe, L/D mule shoe. Had calculated hole fill for the trip.;M/U 8.5" cmt cleanout assy. / BHA #4- 8.5" Tricone bit, bit sub w/ out float, XO, and 1 jt. of HWDP. RIH F/36'-T/3314'.;M/U TDS, filled pipe. Washed down F/3314'-T/3410', seen 30 psi increase and 1-2K WOB. Kicked in rotary and started washing & reaming. Had indication of green cmt at surface. Current depth of 3502'. P/U-73K S/O-65K ROT-68K GPM-462 SPP-507 psi RPM-30 TQ-3.6K MW-9.3 ppg.;Hauled Solids to G&I 7 bbls Hauled to G&I Cumulative 7 bbls Hauled Fluid to G&I 312 bbls Hauled to G&I Cumulative 312 bbls Hauled cement to G&I 0 bbls Cumulative Cement to G&I 0 bbls Daily Down Hole Losses 0 bbls Cumulative Losses 0 bbls Daily metal 233 lbs. Cumulative metal 233 lbs. g pp Rig up E-Line. Make up 9-5/8" CIBP and CCL to E-Line and run in hole T/3653', Logged up pp gpp gg p hole, 9-5/8" casing collar @ 3598' WLM. Logged on depth , set CIBP 6' above casing collar @ 3592' WLM. Tagged CIBP twice to confirm set depth. POOH w/ g@ E-line, R/D and released AK-Eline. p Tagged CIBP at 5942'. EL tagged the lower 9-5/8 CIBP @5942'. This is evidence that they never dump-bailed cement atop it. -WCB EL set CIBP at 3592' WLMD. -WCB Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 564-4389 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 3/03/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL BCU 18 (PTD 208-185) Cement Bond Log/ Gamma Ray 2/27/2022 Please include current contact information if different from above. 208-185 T36390 Meredith Guhl Digitally signed by Meredith Guhl Date: 2022.03.04 09:40:53 -09'00' Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 564-4389 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 3/3/2022 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL BCU 18 (PTD 208-185) Plug/Perf/Cut 2/18/2022 Please include current contact information if different from above. 208-185 T36390 Meredith Guhl Digitally signed by Meredith Guhl Date: 2022.03.04 09:40:26 -09'00' 5HJJ-DPHV%2*& )URP5HJJ-DPHV%2*& 6HQW)ULGD\)HEUXDU\30 7RHGKRRWHU#JPDLOFRP &F%URRNV3KRHEH/2*& 6XEMHFW5((PDLOLQJ+LOFRUS5LJ%&8%23(7HVW5HSRUW /ƌĞǀŝƐĞĚŽƵƌĐŽƉǇŽĨƚŚĞƌĞƉŽƌƚƚŽƐŚŽǁůŝŶĚƐĂƐĂƉĂƐƐŝŶŐƚĞƐƚͲϬĨĂŝůƵƌĞƐ͘WůĞĂƐĞĂĚũƵƐƚǇŽƵƌĐŽƉǇ͘ :ŝŵZĞŐŐ ^ƵƉĞƌǀŝƐŽƌ͕/ŶƐƉĞĐƚŝŽŶƐ K' ϯϯϯt͘ϳƚŚǀĞ͕^ƵŝƚĞϭϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ϵϬϳͲϳϵϯͲϭϮϯϲ ͲͲͲͲͲKƌŝŐŝŶĂůDĞƐƐĂŐĞͲͲͲͲͲ &ƌŽŵ͗ĞĚŚŽŽƚĞƌϮϵϱΛŐŵĂŝů͘ĐŽŵфĞĚŚŽŽƚĞƌϮϵϱΛŐŵĂŝů͘ĐŽŵх ^ĞŶƚ͗&ƌŝĚĂǇ͕&ĞďƌƵĂƌǇϮϱ͕ϮϬϮϮϯ͗ϯϳWD dŽ͗ƌŽŽŬƐ͕WŚŽĞďĞ>;K'ͿфƉŚŽĞďĞ͘ďƌŽŽŬƐΛĂůĂƐŬĂ͘ŐŽǀх͖ZĞŐŐ͕:ĂŵĞƐ;K'Ϳфũŝŵ͘ƌĞŐŐΛĂůĂƐŬĂ͘ŐŽǀх͖KK' WƌƵĚŚŽĞĂǇфĚŽĂ͘ĂŽŐĐĐ͘ƉƌƵĚŚŽĞ͘ďĂǇΛĂůĂƐŬĂ͘ŐŽǀх ^ƵďũĞĐƚ͗ŵĂŝůŝŶŐ͗,ŝůĐŽƌƉZŝŐηϰϬϭhϭϴϮ͘Ϯϯ͘ϮϮKWdĞƐƚZĞƉŽƌƚ hd/KE͗dŚŝƐĞŵĂŝůŽƌŝŐŝŶĂƚĞĚĨƌŽŵŽƵƚƐŝĚĞƚŚĞ^ƚĂƚĞŽĨůĂƐŬĂŵĂŝůƐǇƐƚĞŵ͘ŽŶŽƚĐůŝĐŬůŝŶŬƐŽƌŽƉĞŶĂƚƚĂĐŚŵĞŶƚƐ ƵŶůĞƐƐǇŽƵƌĞĐŽŐŶŝǌĞƚŚĞƐĞŶĚĞƌĂŶĚŬŶŽǁƚŚĞĐŽŶƚĞŶƚŝƐƐĂĨĞ͘ WůĞĂƐĞƐĞĞƚĞƐƚƌĞƉŽƌƚĂŶĚƚĞƐƚĐŚĂƌƚƐĨŽƌƚŚĞ,ŝůĐŽƌƉƌŝŐηϰϬϭhηϭϴǁĞůů͘ dŚĂŶŬǇŽƵ͕ Ě,ŽŽƚĞƌ ϰϬϭt^D ĞůůϯϭϴͲϰϱϮͲϴϵϰϳ zŽƵƌŵĞƐƐĂŐĞŝƐƌĞĂĚǇƚŽďĞƐĞŶƚǁŝƚŚƚŚĞĨŽůůŽǁŝŶŐĨŝůĞŽƌůŝŶŬ ĂƚƚĂĐŚŵĞŶƚƐ͗ ,ŝůĐŽƌƉZŝŐηϰϬϭhϭϴϮ͘Ϯϯ͘ϮϮ EŽƚĞ͗dŽƉƌŽƚĞĐƚĂŐĂŝŶƐƚĐŽŵƉƵƚĞƌǀŝƌƵƐĞƐ͕ĞͲŵĂŝůƉƌŽŐƌĂŵƐŵĂǇƉƌĞǀĞŶƚƐĞŶĚŝŶŐŽƌƌĞĐĞŝǀŝŶŐĐĞƌƚĂŝŶƚǇƉĞƐŽĨĨŝůĞ ĂƚƚĂĐŚŵĞŶƚƐ͘ŚĞĐŬǇŽƵƌĞͲŵĂŝůƐĞĐƵƌŝƚǇƐĞƚƚŝŶŐƐƚŽĚĞƚĞƌŵŝŶĞŚŽǁĂƚƚĂĐŚŵĞŶƚƐĂƌĞŚĂŶĚůĞĚ͘ -5HJJ STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION *All BOPE reports are due to the agency within 5 days of testing* SSu b m i t t o :jim.regg@alaska.gov; AOGCC.Inspectors@alaska.gov; phoebe.brooks@alaska.gov Owner/Contractor: Rig No.:401 DATE: 2/23/22 Rig Rep.: Rig Phone: 907-283-2580 Operator: Op. Phone:318-452-8947 Rep.: E-Mail Well Name: PTD #22081850 Sundry #322-023 Operation: Drilling: Workover: X Explor.: Test: Initial: X Weekly: Bi-Weekly: Other: Rams:250 / 3000 Annular:250 / 3000 Valves:250 / 3000 MASP:1500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.P Well Sign P Upper Kelly 0NA Housekeeping P Rig P Lower Kelly 0NA PTD On Location P Hazard Sec.NA Ball Type 1P Standing Order Posted P Misc.NA Inside BOP 1P FSV Misc 0NA BOP STACK:Quantity Size/Type Test Result MUD SYSTEM:Visual Alarm Stripper 0NATrip Tank NA NA Annular Preventer 1 13-5/8 5M P Pit Level Indicators PP #1 Rams 1 2-7/8" X 5" VBR P Flow Indicator NA NA #2 Rams 1 Blinds FP Meth Gas Detector PP #3 Rams 0NAH2S Gas Detector PP #4 Rams 0NAMS Misc 0NA #5 Rams 0NA #6 Rams 0NA Quantity Test Result Choke Ln. Valves 1 4-1/16 5M P Inside Reel valves 0NA HCR Valves 1 4-1/16 5M P Kill Line Valves 3 4-1/16 5M P Check Valve 0NAACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure (psi)3000 P CHOKE MANIFOLD:Pressure After Closure (psi)1800 P Quantity Test Result 200 psi Attained (sec)18 P No. Valves 8P Full Pressure Attained (sec)103 P Manual Chokes 2P Blind Switch Covers: All stations Yes Hydraulic Chokes 0NA Nitgn. Bottles # & psi (Avg.): 6 @ 2100 P CH Misc 0NA ACC Misc 0NA Test Results Number of Failures:0 Test Time:4.5 Hours Repair or replacement of equipment will be made within days. Remarks: AOGCC Inspection 24 hr Notice Yes Date/Time 2/21/22 19:00 Waived By Test Start Date/Time:2/23/2022 12:00 (date) (time)Witness Test Finish Date/Time:2/23/2022 16:30 BOPE Test Report Notify the AOGCC of repairs with written confirmation to: AOGCC.Inspectors@alaska.gov Jim Regg Hilcorp Tested with 3.5 test joint, PVT and GAS dector and alarms tested by Quadco. Test no 6 F/P on Blind rams, change out Two way check, good test. Chris Hannevold Hilcorp Ed Hooter BCU 18 Test Pressure (psi): howard.hooter@hilcorp.com Form 10-424 (Revised 02/2022) 2022-0223_BOP_Hilcorp401_BCU-18 9 999 9 9 )DLOXUHRQWHVWHTXLSPHQW 3; 5(9,6(' -%5 9 2/23/22 Test no 6 F/P on Blind rams, change out Two way check, P;FPFP 0 5M 9 -%5 9 -%5 From:Chad Helgeson To:McLellan, Bryan J (OGC) Cc:Jacob Flora; Donna Ambruz Subject:RE: [EXTERNAL] RE: BCU-18 (PTD #208-185) Sundry # 322-023 Date:Wednesday, February 23, 2022 12:13:03 PM Attachments:BCU-18 Proposed Schematic 02-10-22.pdf Let me know if you need anything else. From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Wednesday, February 23, 2022 11:23 AM To: Chad Helgeson <chelgeson@hilcorp.com> Cc: Jacob Flora <Jake.Flora@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com> Subject: RE: [EXTERNAL] RE: BCU-18 (PTD #208-185) Sundry # 322-023 Chad, Can you send me the updated proposed wellbore diagram and I’ll attach that and this email to the Sundry. Thanks Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Tuesday, February 22, 2022 11:08 AM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Jacob Flora <Jake.Flora@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com> Subject: RE: [EXTERNAL] RE: BCU-18 (PTD #208-185) Sundry # 322-023 Bryan, Let me know when you get back and have some time to review how you want to handle the changes we are making and have been approved by Mel last week on BCU-18 and we can discuss. Chad From: Rixse, Melvin G (OGC) <melvin.rixse@alaska.gov> Sent: Thursday, February 17, 2022 9:06 AM To: Chad Helgeson <chelgeson@hilcorp.com> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>; Donna Ambruz <dambruz@hilcorp.com>; CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dan Marlowe <dmarlowe@hilcorp.com>; Howard Hooter - (C) <Howard.Hooter@hilcorp.com> Subject: [EXTERNAL] RE: BCU-18 (PTD #208-185) Sundry # 322-023 Chad, Hilcorp is approved to set the two 3-1/2” CIBPs and dump bail cement as described below. Mel Rixse Senior Petroleum Engineer (PE) Alaska Oil and Gas Conservation Commission 907-793-1231 Office 907-223-3605 Cell 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 Mel Rixse at (907-793-1231 ) or (Melvin.Rixse@alaska.gov). cc. Bryan, Donna, Dan, Howard From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Thursday, February 17, 2022 9:01 AM To: Rixse, Melvin G (OGC) <melvin.rixse@alaska.gov> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>; Donna Ambruz <dambruz@hilcorp.com>; Dan Marlowe <dmarlowe@hilcorp.com>; Howard Hooter - (C) <Howard.Hooter@hilcorp.com> Subject: BCU-18 (PTD #208-185) Sundry # 322-023 Mel, Per our conversation can you please give us verbal approval (via email) that we are approved to set the 3-1/2” CIBP deeper (closer to the perfs) at 7,940 (original approved depth was ~7,900) and add a 2nd CIBP at 6,895’ with 35ft of cement. We are planning to complete this work starting tomorrow. I can work with Bryan when he returns of how he would like the paperwork submitted for the change of program. Chad Helgeson KEN Operations Engineer Hilcorp Alaska LLC chelgeson@hilcorp.com 907-777-8405 (O) 907-229-4824 (C) The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. Lease: State/Prov:Alaska Country:USA Angle/Perfs:2º 160'21' 12/5/2014 2/11/2022 Maximum Deviation:29º @ 4,352' Date Completed:04/06/09 Ground Level (above MSL):RKB (above GL): Well Name & Number:Beaver Creek Unit #18 A - 028083 County or Parish:Kenai Peninsula Borough Revised By:Chad Helgeson Downhole Revision Date:Schematic Revision Date: Angle @KOP and Depth:2.7º / 100 ft @ 941' Excape System Details 6 Excape modules placed along w 1 chemical injection mandrel Red contol line Mods #2-6 Green control line Mod #1 & chemical injection mandrel The bottom @ 8,825' is open 8,190' Opens @ 9,545 psi Beluga Perfs MD (RKB): 2-1/2" 12 spf = 8,010'-8,020' (LB-20) (7/11/13) Module 6 = 8,020'-8,030' (LB-20) 2-1/2" 12 spf = 8,020'-8,030' (LB-20) (7/11/13) 2-1/2" 12 spf = 8,030'-8,037' (LB-20) (7/11/13) 2-1/2" 12 spf = 8,106'-8,110' (LB-21) (7/11/13) Module 5 = 8,110'-8,120' (LB-21) 2-1/2" 12 spf = 8,110'-8,120' (LB-21) (7/11/13) 2-1/2" 12 spf = 8,120'-8,140' (LB-21) (7/11/13) Module 4 = 8,460'-8,470' (LB-25) Module 3 = 8,559'-8,569' (LB-26) Module 2 = 8,695'-8,705' (LB-28) 3-1/2" TOC @ 6860' CBL (2/10/09) BC-18 Pad 3 1,055' FNL, 1,628' FWL, Sec. 34, T7N, R10W, S.M. TD 9,244' MD 8,689' TVD PBTD 9,193' MD 8,638' TVD Conductor 20" X56 129.25ppf Top Bottom MD 0' 101' Surface Casing 13-3/8" K-55 68 ppf BTC Top Bottom MD 0' 2,097' TVD 0' 2,045' 16" Hole Cmt w/ 658 sks (290 bbls) of 12.0 ppg, Type 1 cmt , 91 sks (40 bbls) cmt Intermediate Casing 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 7,612' TVD 0' 7,058' 12-1/4" Hole Cmt w/ 290 sks (171 bbls) of Class G Lead @ 10.5 ppg followed w/ 216 sks (45 bbls) of Class G Tail @ 15.8 ppg. Production Tubing 3-1/2" L-80 9.3 ppf EUE Mod Top Bottom MD 6000'9,230' TVD 5520'8,675' Permit #: 208-185 API #:50-133-20584-00-S1 Prop. Des: A - 028083 KB elevation: 181' (21' AGL) Latitude:60º 39' 29.533" N Longitude: 151º 01' 11.195' W X:317,475 (NAD 27) Y:2,433,986 (NAD 27) Spud:1/18/2009 04:00 hrs TD:2/5/2009 13:30 hrs Rig Released: 2/12/2009 06:00 hrs PA #:891008868A Chemical Injection Mandrel @ 8,174' MD (RKB) PROPOSED Tag @ 8,638' SLM (12/05/14) 2.25" DD Bailer LB-21 LB-20 Capillary Tubing 3/8" 2205 Stainless Steel Top Bottom MD 0' 0' TVD 0' 0' (***Pulled 04/08/2010***) Tree cxn: 6-1/2" Otis 9-5/8" TOC calculated at ~3800' 3-1/2" CIBP at ~7940' w 35' cmt top 9-5/8" CIBP at ~5950' Jet Cut 3-1/2" tubing at ~6000' 3-1/2" CIBP at ~6895' w 35' cmt top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y Samantha Carlisle at 8:52 am, Jan 18, 2022 'LJLWDOO\VLJQHGE\'DQ0DUORZH '1FQ 'DQ0DUORZH RX 8VHUV 'DWH 'DQ0DUORZH 3URYLGH KUV QRWLFH IRU $2*&& WR ZLWQHVV 3UHVVXUH 7HVW RI EULGJH SOXJ VHW LQ FDVLQJ DW a PG ; 6)''65 ; %-0 &7 %23 WHVW WR SVL 5LJ %23 WHVW WR SVL dts 2/2/2022 JLC 2/2/2022 Jeremy Price Digitally signed by Jeremy Price Date: 2022.02.02 15:25:07 -09'00' RBDMS HEW 2/3/2022 Well Prognosis 02/01/2022 Well Name: BCU-18 API Number: 50-133-20584-00-00 Current Status: SI Leg: NA Regulatory Contact: Juanita Lovett 777-8332 Permit to Drill Number: 208-185 First Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (M) Second Call Engineer: Chad Helgeson (907) 777-8420 (O) (907) 229-4824 (M) MPSP prior to plugging back perfs: 1500 psi (Highest observed SITP of 1272 psi in 2015 with open perfs @ 7465’ TVD) MPSP after plugging back perfs: 0 psi Well Status: SI gas producer since 2016 Brief Well Summary Exhausted 2009 Excape completion targeting the Lower Beluga. The objective of this sundry is to abandon the current wellbore and prepare it for a sidetrack. Notes Regarding Wellbore Condition: 9/21/2019 Slickline could not pass 3748’, bailer full of mud Procedure: 1. Review COAs on Approved Sundry 10-403 Form 2. Provide AOGCC 24hrs advance notice of BOP Test 3. RU Coil tubing, test BOPs to 3000 psi 4. MU cleanout BHA, using water clean out to top excape module at ~8000’ 5. RU E-line, PT lubricator above MPSP 6. Set 3-1/2” CIBP @ ~7900’, dump bail 35’ cement top 7. MIT CIBP to 2000 psi 8. Jet cut tubing at approximately 6000’, circulate annulus clean 9. MIRU 401 workover rig 10. Provide AOGCC 24hrs in advance of BOP test 11. Install TWC 12. ND Tree 13. NU BOP and test to 3000 psi 14. Pull TWC 15. Pull and lay down tubing 16. RU E-line, Set 9-5/8” CIBP over tubing stub at ~6000’ 17. Log CBL from CIBP to surface, dump bail 35’ cement 18. MIT CIBP to 3000 psi 19. ND BOP, NU dry hole tree 20. 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TD 9,244' MD 8,689' TVD PBTD 9,193' MD 8,638' TVD Conductor 20" X56 129.25ppf Top Bottom MD 0' 101' Surface Casing 13-3/8" K-55 68 ppf BTC Top Bottom MD 0' 2,097' TVD 0' 2,045' 16" Hole Cmt w/ 658 sks (290 bbls) of 12.0 ppg, Type 1 cmt , 91 sks (40 bbls) cmt Intermediate Casing 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 7,612' TVD 0' 7,058' 12-1/4" Hole Cmt w/ 290 sks (171 bbls) of Class G Lead @ 10.5 ppg followed w/ 216 sks (45 bbls) of Class G Tail @ 15.8 ppg. Production Tubing 3-1/2" L-80 9.3 ppf EUE Mod Top Bottom MD 0' 9,230' Permit #: 208-185 API #: 50-133-20584-00-S1 Prop. Des: A - 028083 KB elevation: 181' (21' AGL) Latitude: 60º 39' 29.533" N Longitude: 151º 01' 11.195' W X: 317,475 (NAD 27) Y: 2,433,986 (NAD 27) Spud: 1/18/2009 04:00 hrs TD: 2/5/2009 13:30 hrs Rig Released: 2/12/2009 06:00 hrs PA #: 891008868A Chemical Injection Mandrel @ 8,174' MD (RKB) PROPOSED Tag @ 8,638' SLM (12/05/14) 2.25" DD Bailer LB-21 LB-20 Capillary Tubing 3/8" 2205 Stainless Steel Top Bottom MD 0' 0' TVD 0' 0' (***Pulled 04/08/2010***) Tree cxn: 6-1/2" Otis 9-5/8" TOC calculated at ~3800' 3-1/2" CIBP at ~7900' w 35' cmt top 9-5/8" CIBP at ~5950' w 35' cmt top /HDVH 6WDWH3URY$ODVND &RXQWU\86$ $QJOH3HUIV 0D[LPXP'HYLDWLRQ# 'DWH&RPSOHWHG*URXQG/HYHODERYH06/ 5.%DERYH*/ :HOO1DPH 1XPEHU%HDYHU&UHHN8QLW $ &RXQW\RU3DULVK.HQDL3HQLQVXOD%RURXJK 5HYLVHG%\-DNH)ORUD 'RZQKROH5HYLVLRQ'DWH 6FKHPDWLF5HYLVLRQ'DWH $QJOH#.23DQG'HSWKIW# ([FDSH6\VWHP'HWDLOV ([FDSHPRGXOHVSODFHGDORQJZFKHPLFDO LQMHFWLRQPDQGUHO 5HG FRQWROOLQH0RGV *UHHQ FRQWUROOLQH0RG FKHPLFDOLQMHFWLRQPDQGUHO 7KHERWWRP# LVRSHQ 2SHQV#SVL %HOXJD3HUIV0'5.% VSI /% 0RGXOH /% VSI /% VSI /% VSI /% 0RGXOH /% VSI /% VSI /% 0RGXOH /% 0RGXOH /% 0RGXOH /% 72&# &%/ %& 3DG )1/ ):/ 6HF715:60 7' 0' 79' 3%7' 0' 79' &RQGXFWRU ;SSI 7RS%RWWRP 0' 6XUIDFH&DVLQJ .SSI%7& 7RS%RWWRP 0' 79' +ROH&PWZVNVEEOVRI SSJ7\SHFPWVNVEEOVFPW ,QWHUPHGLDWH&DVLQJ /SSI%XWW 7RS%RWWRP 0' 79' +ROH&PWZVNVEEOVRI &ODVV*/HDG#SSJIROORZHGZVNV EEOVRI&ODVV*7DLO#SSJ 3URGXFWLRQ7XELQJ /SSI(8(0RG 7RS%RWWRP 0' 3HUPLW $3, 6 3URS'HV $ .%HOHYDWLRQ $*/ /DWLWXGH 1 /RQJLWXGH : ; 1$' < 1$' 6SXG KUV 7' KUV 5LJ5HOHDVHG KUV 3$ $ &KHPLFDO,QMHFWLRQ0DQGUHO # 0'5.% WZKWK^ 7DJ# 6/0 ''%DLOHU /% /% &DSLOODU\7XELQJ 6WDLQOHVV6WHHO 7RS %RWWRP 0' 79' 3XOOHG 7UHHF[Q2WLV -HW&XW7XELQJ FRQWUROOLQHVa &LUFXODWHDQQXOXVFOHDQSUHULJ &,%3Z FHPHQW#a &,%3Z FHPHQW 6XSHUVHGHG 7KHSLFWXUHFDQ WEHGLVSOD\HG7KHSLFWXUHFDQ WEHGLVSOD\HG7KHSLFWXUHFDQ WEHGLVSOD\HG7KHSLFWXUHFDQ WEHGLVSOD\HG ϭϯͲϱͬϴΗ^ƉŚĞƌŝĐĂůŶŶƵůĂƌ ,ĞŝŐŚƚ͗ϰϲΗ tĞŝŐŚƚ͗ϭϮ͕ϴϬϲ ϭϯͲϱͬϴΗ>t^ŽƵďůĞKW ,ĞŝŐŚƚ͗ϯϳΗ tŝĚƚŚ͗ϵϯΗ tĞŝŐŚƚϵ͕ϵϬϬůďƐ͘ dKWZD^ ϮͲϳͬϴΗdKϱͲϭͬϮΗDh>d/Ͳ ZD^ KddKDZD^ >/EZD^ ϭϯͲϱͬϴΗDƵĚƌŽƐƐtͬϰͲ ϭͬϭϲΗŽƵƚůĞƚƐ ,ĞŝŐŚƚ͗Ϯϴ͘ϱΗ tŝĚƚŚϯϭΗ ƵĂůϰͲϭͬϭϲΗDĂŶƵĂů'ĂƚĞ ǀĂůǀĞƐtͬ^ƚŽϮͲϭͬϭϲΗ ϰͲϭͬϭϲΗDĂŶƵĂů'ĂƚĞ ǀĂůǀĞΘϰͲϭͬϭϲΗ,Ztͬ ^ƚŽϮͲϭͬϭϲΗ &Ƶůů DƵĚƌŽƐƐƐƐǇ͘ǁŝĚƚŚ ǁͬǀĂůǀĞƐŝŶƐƚĂůůĞĚ tŝĚƚŚ͗ϵϴ͘ϱΗ tĞŝŐŚƚ͗ ϮϮϬϬůďƐ͘ <ŝůůƐŝĚĞ ŚŽŬĞƐŝĚĞ ,ĞŝŐŚƚĚĚŝƚŝŽŶĨŽƌZŝŶŐ'ĂƐŬĞƚƐ͗ϬΗ KWdŽƚĂů ,ĞŝŐŚƚ͗ϭϭϭ͘ϱΗ KW dŽƚĂůǁĞŝŐŚƚ͗Ϯϰ͕ϵϬϲůďƐ͘ ϭϯͲϱͬϴΗϱŵKW WĂĐŬĂŐĞ tͬϰͲϭͬϭϲΗsĂůǀĞƐ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS T ,-1- a- _ ✓ yG. 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Li Performed: Suspend ❑ PerforateEa Other Stimulate ❑ Alter Casing ❑ Change Apbrbved-Program ❑ Plug for Redrill ❑ erforate New Pool El Repair Well El Re-enterSusp Well ❑ Other: Nitrogen 2. Operator Hilcorp Alaska, LLC 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development Q Exploratory ❑ 208-185 3. Address: 3800 Centerpoint Dr, Suite 1400 Anchorage, Stratigraphic❑ Service ❑ 6. API Number: AK 99503 50-133-20584-00-00 7. Property Designation (Lease Number): 8. Well Name and Number: FEDA 028083 Beaver Creek Unit (BCU) 18 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field/Pool(s): N/A Beaver Creek / Beluga Gas Pool 11. Present Well Condition Summary: Total Depth measured 9,244 feet Plugs measured N/A feet true vertical 8,689 feet Junk measured N/A feet Effective Depth measured 9,193 feet Packer measured N/A feet true vertical 8,638 feet true vertical N/A feet Casing Length Size MD .TVD Burst Collapse Structural Conductor 101' 20" 101' 101' 3,060 psi 1,500 psi Surface 2,097' 13-3/8" 2,097' 2,045' 3,450 psi 1,950 psi Intermediate 9,230' 9-5/8" 9,230' 8,675' 5,750 psi 3,090 psi Production Liner Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth) 3-1/2" 9.3# / L-80 9,230' MD 8,675' TVD Packers and SSSV (type, measured and true vertical depth) N/A N/A N/A N/A 12. Stimulation or cement squeeze summary: N/A Intervals treated (measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil -Bbl Gas-Mcf Water -Bbl CasingPressure Tubing Pressure Prior to well operation: 0 0 0 0 0 Subsequent to operation:1 0 0 0 0 0 14. Attachments (required per 20 AAc 25.070, 25.071, s 25.283) 15. Well Class after work: Daily Report of Well Operations ❑� Exploratory ❑ Development p ❑ Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16. Well Status after work: Oil Gas El WDSPL Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP ❑ SPLUG ❑ 17. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 319-384 Authorized Name: Bo York 777-8345 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: tkramer(olhilcoro com 1 Authorized Signature Date: ��- I`�' `j 777-8420 1 7f Contact Phone: Form 10-404 Revised 4/2017 r X/ I 10411 c •� +5 RBDMS t � OCT 0 7 2019 Submit Original Only Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date BCU -18 E -Line 1 50-133-20584-00 208-185 9/20/19 1 9/21/19 Daily Operations: 09/18/2019- Wednesday No activity to report. 09/19/2019 - Thursday No activity to report. 09/20/2019 - Friday Sign in. Mobe to location. PTW and JSA. Rig up lubricator, PT to 250 psi low and 3,500 psi high. RIH w/GPT, 2.80" GR and tag at 3,720'. Found FL at 2,900'. Could not work thru spot at 3,720'. Called town and decision was to get slickline out to work thru tight spots and drift tubing. Wait on slickline. Sign in. Mobe to location. PTW and JSA. Rig up slickline lubricator, PT to 250 psi low and 3,500 psi high. RIH w/ 3.82" GR and tag at 3,743'. Spudded on obstruction and made about 1'. POOH. RIH w/ 2-1/2" x 10' DD bailer and spudded on obstruction at 3,744' to 3,746'. POOH. Full of thick gray pancake mix looking mud. Mixes good with water. RIH w/ 2" x 5' DD bailer and bailed from 3,746' to 3,748'. POOH and had full bailer of same as before. Called town and will see if we can push fluid away tomorrow and if we can't will perforate KBU 32-08 sunday. Will get a game plan for this well. Rig down slickline and secure well. 09/21/2019 - Saturday Sign in. Mobe to location. PTW and JSA. Spot and rig up equipment. PT hard lines to 5,000 psi. Fill tubs up with water on SLB pump truck. Pump 22 bbls before tubing started pressuring up. Pressured up to 4,500 psi and surged well 3 to 4 times. Pressured back up to 4,500 psi for one hour and didn't lose any pressure so surged pressure 3 to 4 more times. Didn't help so called town and decided to leave 4,500 psi on well for a couple days. Rig down hard lines and secure well with 4,500 psi on tubing. AK E -Line will be out to rig down equipment and move it to KBU 32-08 for perfjob tomorrow. 09/22/2019 -Sunday No activity to report. 09/23/2019 - Monday No activity to report. 09/24/2019 -Tuesday No activity to report. BC -18 Pad 3 1,055' FNL, 1,628' FWL, Hilcorp Alaska, LLC See. 34, T7N, R10W, S.M. M ACTUAL SCHEMATIC Conductor 20" X56 129.25ppf Top Top Bottom MD 0' 101' TVD 0' 101' Surface Casing 13-3/8" K-55 68 ppf BTC Top Bottom MD 0' 2,097' TVD 0' 2,045' 16" Hole Cmt w/ 658 sks (290 bbls) of 12.0 ppg, Type 1 cmt , 91 sks (40 bbls) cmt returned to surface Intermediate Casing 93/8" L-80 40 ppf Butt Top Bottom MD 0' 7,612' TVD 0' 7,058' 12-1/4" Hole Cat w/ 290 sks (171 bbls) of Class G Lead @ 10.5 ppg followed w/ 216 sks (45 bbis) of Class G Tail @ 15.8 ppg. 67 sks (40 bbls) returned to surface Production Tubing Beaver Creek Unit 918 3-1/2" L-80 9.3 ppf EUE Mod Top Bottom MD 0' 9,230' TVD 0' 8,675' 8-1/2" Hole Can w/ 737 sks (154 bbls) Class G @ 15.8 ppg, 100% returns, Did," bump - 6 Excape modules placed along with 1 chemical injection mandrel - Red contol line fres modules 2-6 - Green control line fires Modules 1 & chemical injection mandrel The bottom @ 8,825' is open 8,190' Opens @ 9,545 psi 2-1/2" 12 spf= 8,010'-8,020' (LB -20) (7/11/13) Module 6 = 8,020'-8,030' (LB -20) 2-1/2" 12 spf= 8,020'-8,030' (LB -20) (7/11/13) 2-1/2" 12 spf = 8,030'-8,037' (LB -20) (7111/13) 2-1/2" 12 spf= 8,106'-8,110' (LB -21) (7111/13) Module5 = 8,110'-8,120' (LB -21) 2-1 /2" 12 spf = 8,110'-6,120' (LB -21) (7111/13) 2-1/2" 12 spf= 8,120'-8,140' (LB -21) (7/11/13) Module 4 = 8,460'-8,470' (LB -25) Module 3 = 8,559'-8,569' (LB -26) Module 2 = 8,695'-8,705' (LB -28) Module 1 = 8.825'-8.835' 11R -2c) Well Name & Number: Beaver Creek Unit 918 Lease: A - 028083 County or Parish: Kenai Peninsula Borough State/Prov: I Alaska Country: USA Angle @KOP and Depth: 2.70 / 100 ft @941' Angle/Perfs: 2° Maximum Deviation: 29° @ 4,352' Date Completed: 04/06/09 Ground Level (above MSL): 160' RKB (above GL): 21' Revised By: Stan Porhola Downhole Revision Date: 12/5120141 Schematic Revision Date: 1/1/2015 THE STATE °fALASKA GOVERNOR MIKE DUNLEAVY Bo York Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Beaver Creek Field, Beluga Gas Pool, BCU 18 Permit to Drill Number: 208-185 Sundry Number: 319-384 Dear Mr. York: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 vdwvv.o ogcc.ol oska.gov Enclosed is the approved application for the 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, J sieL. ielowski Commissioner DATED this )3 day of August, 2019. gBDMS � AUG 3 0 2019 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 447cAeGY9111COT11 17Y5 F/P-io? 1. Type of Request: Abandon ❑ Plug Perforations ❑✓ - Fracture Stimulate Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate ❑r Other Stimulate ❑ Pull Tubing ❑ Change Approved Program[] Plug for Reddll ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: Nitrogen ❑� 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Hilcorp Alaska, LLC Exploratory ❑ Development Q ' Stratigraphic ❑ Service ❑ 208-185 - 3. Address: 3800 Centerpoint Drive, Suite 1400 6. API Number: Anchorage Alaska 99503 50-133-20584-00-00 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? CO 237A Will planned perforations require a spacing exception? YeELJ No Q Beaver Creek Unit (BCU) #18 ' 9. Property Designation (Lease Number): 10. Field/Pool(s): FEDA 028083 Beaver Creek/ Beluga Gas Pool ' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 9,244' • 8,689' 9,193' 8,638' 2,488 psi N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 101' 20" 101' 101' 3,060 psi 1,500 psi Surface 2,097' 13-3/8" 2,097' 2,045' 3,450 psi 1,950 psi Intermediate 9,230' 9-5/8" 9,230' 8,675' 5,750 psi 3,090 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3# / L-80 9,230' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): N/A; N/A N/A; N/A 12. Attachments: Proposal Summary El Wellbore schematic El 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ DevelopmentE) ' Service E] 14. Estimated Dale for 15. Well Status after proposed work: Commencing Operations: 9/4/2019 OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ GAS ❑� - WAG ❑ GSTOR ❑ SPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ [I Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Bo York 777-8345 Contact Name: Christina Twogood Authorized Title: Operations Manager Contact Email: CtwO ood hilcor .COm Contact Phone: 777-8443 Authorized Signature: Date: ti COMMISSION IWIE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ,r I01 f`l• Plug Integrity BOP Test ❑ Mechanical Integrity Test E]f Location Clearance Other: 1 \ — to �prr`U-v' •jip Post Initial Injection MIT Req'd? Yes Q No Spacing Exception Required? Yeso ,L --J/ Subsequent Form Required: — U � NSbFRo 0 7 IBDMS.1iE' AUG 3 0 2019 V APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: SZZr ,/ Su mit Fonn and Form 10-4D3 Revised 4/2017 Approved application is valid for 12 months from the date of approval. Attachments in Duplicate Hileorp Alaska, LLC 208-185 50-133-20584-00S1 A - 028083 ion: 181' (21' AGL) 600 39' 29.533" N 151001' 11.195'W 317,475 (NAD 27) 2,433,986 (NAD 27) 1118/2009 04:00 bra 21512009 13:30 hrs sed: 2/12/2009 06:00 hrs Tree cxn: 6-1/2" Otis TOC 3-1/2" Csg CBL (2/10109) .6,860' Excape System Details Module 1- no flapper Module 2-6 - reclosing flapper _Flappers MD (RKB): Module 6 = 8,040' Module 5 = 8,130' Module 4 = 8,480' Module 3 = 8,579' Module 2 = 8,715' Module 1 = NA Chemical Injection Mandrel @ 8,174'MD(RKB) Tag @ 8,638' SLM (12105114) 2.25" DD Bailer Fish (77' of 318" capstring, 3/4" FCV, 3/4" sinker bar "'Fully Recovered 8/26/13"• Capillary Tubing 318" 2205 Stainless Steel Top Bottom MD 0' 0' TVD 0' 0' ("'Pulled 04/0812010"') BC -18 Pad 3 1,055' FNL, 1,628' FWL, Sec. 34, TTN, R10W, S.M. TDPBTD 9,244' MD 9,193' MD 8,689' TVD 8,638' TVD ACTUAL SCHEMATIC Conductor 20" X56 129.25ppf County or Parish: Top Bottom MD 0' 101' TVD 0' 101' Surface Casino 13-3/8" K55 68 ppf BTC Top Bottom MD 0' 2,097' TVD 0' 2,045' 16" Hole Cast w/ 658 sks (290 bbls) of 12.0 ppg, Type 1 cmt , 91 sks (40 bbls) cmt returned to surface Intermediate Casino 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 7,612' TVD 0' 7,058' 12-114" Hole Cmt w/ 290 sks (171 bbls) of Class G Lead @ 10.5 ppg followed w/ 216 sks (45 bbls) of Class G Tail @ 15.8 ppg. 67 sks 140 bbls) returned to surface Production Tubing 3-1/2" L-80 9.3 ppf EUE Mod Tap Bottom MD 0' 9,230' TVD 0'�- 8,675' 8-112" Hole Cmt wr 9i sks (154 bbls) Class G @ 15.8 ppg, 10016 returns, Did not bump Excape System Details - 6 Excape modules placed along with 1 chemical injection mandrel - Red contcl line fires modules 2-6 - Green control line fres Modules 1 & chemical injection mandrel The bottom @ 8,825' is open 8,190' Opens @ 9,545 psi 2-1/2" 12 spf = 8,010'-8,020' (LB -20) (7/11/13) Module 6 = 8,020'-8,030' (LB -20) 2-1/2" 12 spf= 8,020'-8,030' (LB -20) (7/11/13) 2-1/2" 12 spf= 8,030'-8,037'(!_B-20) (7/11/13) 2-1/2" 12 spf = 8,106'-8,110' (LB -21) (7/11/13) Module = 8,110'-8,120' (LB -21) 2-1/2" 12 spf = 8,110'-8,120' (LB -21) (7/11/13) 2-1/2" 12 spf = 8,120'-8,140' (LB -21) (7/11/13) Module 4 = 8,460'-8,470' (LB -25) Module 3 = 8,559'-8,569' (LB -26) Module 2 = 8,695'-8,705' (LB -28) Well Name & Number: Beaver Creek Unit #18 Lease: A - 028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 2.701100 ft @941' Angle/Perfs: 20 Maximum Deviation: 290 @ 4,352' Date Completed: 04/06/09 Ground Level (above MSL): 160' RKB (above GL): 21' Revised By: Stan Porhola Downhole Revision Date: 1215/20141 Schematic Revision Date: 1 1/1/2015 Ililcorp Alaska, LLC Permit #: 208.185 API #: 50-133-20584-0051 Prop. Des: A - 028083 KB elevation: 181' (21' AGL) Latitude: 600 39' 29.533" N Longitude: 151° 01' 11.195' w X: 317,475 (NAD 27) Y: 2,433,986 (NAD 27) Spud: 1118/2009 04:00 him TD: 2/5/2009 13:30 him Rig Released: 2/12/2009 06:00 him PA #: 891008868A Tree cxn: 6-112" Otis TOC 3.112" Csg CBL (2110109) - 6,860' 3.1/2" CIBP @ 7,990' MD Excape System Details Module 1: No Flapper Module 2-6: Re -closing Flapper Flappers MD (RKB): Module 6 = 8,040' Module 5 = 8,130' Module 4 = 8,480' Module 3 = 8,579' Module 2 = 8,715' Module 1 = NA BC -18 Pad 3 1,066' FNL, 1,628' FWL, Sec. 34, T7N, R1 OW, S.M. TOC @ 7,955' Chemical Injection Mandrel @ 8,174- MD (RKB) Tag @ 8,603'(04104115) 2.0" Bailer Fish (77' of 3/8" capstring, 314" FCV, 3/4" sinker bar) ***Fully Recovered 8126113"' 810 M Beluga B12 Bit B13 B13 B14 B75 B18 LB -20 Capillary Tubing $ g 3/8" 2205 Stainless Steel Top Bottom TD PBTD MD o' o' 9,244' MD 9,193' MD TVD 0' 0' 8,689' TVD 8,638' TVD (f*Pulled 04/0812010"el PROPOSED SCHEMATIC Conductor 20" X66 129.25ppf 9.3 ppf EUE Mod Top Bottom MD 0' 101' TVD 0' 101, Surface Casino 13-3/8" K-65 68 ppf BTC Top Bottom MD 0' 2,097' TVD 0' 2,046' 16" Hole Cmt w/ 668 sks (290 bbls) of 12.0 ppg, Type 1 can, 91 sks (40 bbls) cmt returned to surface intermediate Casing 9-6/8" L-80 40 ppf Butt Top Bottom MD 0' 7,612' TVD 0' 7,068' 12-1/4" Hole Con w/ 290 sks (171 bbis) of Class G Lead @ 10.6 ppg followed w/ 216 sks (45 bbla) of Class G Tail @ 16.8 ppg. 67 aka (40 bbls) returned to surface Production Tubing Top (MO) 3-1/2" L-80 9.3 ppf EUE Mod Date/ FT Nodule Top Bottom MD 0' 9,230' TVD 0' 8,676' 8-1/2" Hole Can w/ 737 sks (164 bbis) Class G @ 18.8 ppg, 100% returns, Did not bump Excape System Details - 6 Excape modules placed along with 1 chemical injection mandrel - Red Centel line fres modules 2-6 - Green control line fires Modules 1 & chemical injection mandrel The bottom @ 8,825' is open zone Top (MO) Btm(Mol Top n VD) Bon (TVD) Date/ FT Nodule sommenu BIO 6912 6927 6366 6381 15 Proposed TBD MBeluaa 7003 R 7 655 6498 44 I Proposed TBD 612 nol nil 6649 6659 10 1 PI,ozed TBD 012 7225 n95 6673 6703 3o Proposed Tao 613 7274 730) 022 6747 z6 Proposes Tell B13 7359 7376 6806 6823 1] Proposed TBD 014 7480 7493 6926 6939 13 1 Proposed TBO B15 7536 75154 W82 7000 18 I Proposed TSO B18 7900 7938 7353 7383 30 Proposed TBD LB -20 8110 x320 7455 7465 10 7/11/2013 topen u3-20 &II0 ww 7465 7475 So 1 Module Open LB -20 8020 0030 7465 7475 10 1 7/11/2013 Op.. 18 -HI 8030 1 9737 7475 7482 7 7/11/2013 Open La -21 alas ssso 7551 7555 4 7/11/2013 Open Is21x110 6120 7555 7565 10 Nodules Open Li 21 8110 8120 1 7555 7565 10 7/11/2013 Open LB -21 s120 e140 7565 7585 20 7/11/2013 Open 1s-25 8440 8470 7905 7915 10 Wdu1e4 Open LB -26 8559 8569 eros 8014 10 Wd.le3 open La -28 8691 1 8705 it 8140 8150 10 Module Open La -29 B61s I M35 1 8270 8290 10 Wdulel 0cen Well Name & Number: Beaver Creek Unit #18 Lease: A - 028083 County or Parish: Kenai Peninsula Borough StatelProv: AlasktK(, Country: USA Angle @KOP and Depth: 2.7p 1100 k @941' Angle/Peds: 2- Maximum Devia 29- @ 4,352' Date Completed: 04/06/09 Ground Level (above MSL): 160' bove GL): 21' Revised By: Christina Twogood Downhole Revision Date: 12/5/2014 Schematic Revision Date: 1 8/15/2019 n Hilcora Alaska, LG Well Prognosis Well: BCU -18 Date: 08/15/2019 Well Name: BCU -18 API Number: 50-133-20584-00 Current Status: Shut -In Gas Well Leg: N/A Estimated Start Date: September 4, 2019 Rig: E -Line Reg. Approval Req'd? 403 / BUM Date Reg. Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-185 First Call Engineer: Christina Twogood (907) 777-8443 (0) (907) 378-7323 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (0) (987) 867-0665 (C) AFE Number: Current Bottom Hole Pressure: Maximum Expected BHP: Max. Allowable Surface Pressure Brief Well Summary "' 3,224 psi @ 7,455' TVD — 3,226 psi @ 7,383' TVD "' 2,488 psi @ 7,383' TVD (Based on 04/2009 Static Survey) (Based on normal gradient) (Based on expected BHP and gas gradient to surface (0.10psi/ft) BCU -18 was drilled in 2009 as a grassroots monobore with Excape completion to target gas sands in the lower Beluga formation. All six Excape modules were perforated and fracture stimulated. ,The well performance was initially poor and was shut-in shortly after completion due to sand production. In August 2013, the well was cleaned out with coiled tubing. In September 2013 three intervals in the LB -20 Sand and three intervals in the LB -21 Sand were perforated. In February 2014 a PLT log was run. In December 2014 the well was bailed and swabbed with Slickline. The purpose of this work is to isolate all existing perforations and perforate in the Middle Beluga B10, M Beluga, B12 (two intervals), B13 (two intervals), B14, B15 and B18 Sands. Notes Regarding Wellbore Condition • Well is currently shut-in. • Last tag on 6/7/15 at 8,614' RKB with a 2.23" GR Safety Concerns • Discuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people could enter. • Consider tank placement based on wind direction and current weather forecast (venting nitrogen during thisjob). • Ensure all crews are aware of stop job authority. E -Line Procedure 1. RU E -Line and pressure control equipment. PT lubricator to 3,000 psi High / 250 psi Low. a. Tree connection is 6-1/2" OTIS 2. RIH with GPT tool and find fluid level. If fluid level is over the depth to shoot the new perfs, discuss using Nitrogen with the Operations Engineer. 3. If needed, RU Nitrogen Truck and pressure up on well to push water back into formation. Use GPT Tool to confirm is fluid level is below interval to perf. Well Prognosis Well: BCU -18 liilc pAlaska. LL' Date: 08/15/2019 4. RIH with 3-1/2" CIBP and set at 7,990' MD. Dump bail 35' of cement on top. POOH. a. Perform adrift run prior to RIH with CIBP. S. RU 2-1/2" HC, 6 SPF, 602 wireline guns. a. If needed, proposed perforations maybe shot twice to provide for 12 SPF. 6. RIH and perforate the following intervals: Zone Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT SPF Beluga B10 6912 6927 6366 6381 15 6 Beluga M Beluga 7003 7047 6455 6498 44 6 Beluga B12 7201 7211 6649 6659 10 6 Beluga B12 7225 7255 6673 6703 30 6 Beluga I B13 7274 7300 6722 6747 26 1 6 Beluga B13 7359 7376 6806 6823 17 6 Beluga B14 7480 7493 6926 6939 13 6 Beluga B15 7536 7554 6982 7000 18 6 Beluga B18 7908 7938 7353 7383 30 6 a. Pressure up tubing to 2500 psi before perforating. b. Proposed perfs shown on the proposed schematic in red font. c. Final Perfs tie-in sheet will be provided in the field for exact pert intervals. d. Use Gamma/CCL to correlate. e. The perforations in the table above are located in the Beluga Gas Pool based on Conservation Order No. 237A. f. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record tubing pressures before and after each perforating run. g. Record 5, 10 and 15 minute pressures after firing guns. RD E -Line. 8. Turn well over to production. Attachments: 1. Current Schematic 2. Proposed Schematic 3. Standard Well Procedure—N2 Operations ifSTANDARD WELL PROCEDURE ❑1leurp Alaska. UC NITROGEN OPERATIONS 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre -job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 30.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4 -gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures 02 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. 12/08/2015 FINAL v1 Page 1 of 1 STATE OF ALASKA RECEIVED . ALA OIL AND GAS CONSERVATION COMMIlt JUL 1 9 2013 REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Repair Well U Plug Perforations U Perforate U Other U °ACC Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver p Time Extension p Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development IO Exploratory ❑ 208-185 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic 0 Service ❑ 6.API Number: Anchorage,Alaska 99504 50-133-20584-00 7.Property Designation(Lease Number): 8.Well Name and Number: FEDA028083 Beaver Creek Unit(BCU)18 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Beaver Creek/Beluga Gas Pool 11.Present Well Condition Summary: Total Depth measured 9,244 feet Plugs measured N/A feet true vertical 8,689 feet Junk measured N/A feet Effective Depth measured 9,193 feet Packer measured N/A feet true vertical 8,638 feet true vertical N/A feet Casing Length Size MD ND Burst Collapse Structural Conductor 101' 20" 101' 101' 3,060 psi 1,500 psi Surface 2,097' 13-3/8" 2,097' 2,045' 3,450 psi 1,950 psi Intermediate 9,230' 9-5/8" 9,230' 8,675' 5,750 psi 3,090 psi Production Liner Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic WED NOV 0 !f 2013 Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 9,230'MD 8,675'ND Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 0 Subsequent to operation: 0 547 0 0 655 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development lig Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ Gas Q WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 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: 313-353 .i Contact Stan Porhola Email sporhola(cDhilcorp.com Printed Name Stan Porhola Title Operations Engineer Signature , erk "� Phone 907-777-8412 Date 7 L 1 13 7.2.7.r3 RBDMS JUL 2 4 10141\`\ Form 10-404 Revised 10/2012 / Submit Original Only A „00i • • Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-18 50-133-20584-00 208-185 7/11/13 7/11/13 Daily Operations: 07/10/2013-Wednesday No activity to report. 07/11/2013-Thursday Mobe equipment to pad. Rig up lubricator, pressure test to 250 psi low and 3000 psi high. RIH hole with GPT/GR tool, 2-1/2" x 20' HC, 6 spf, 60 degree phase and tie into Expro Log CBL log dated 10 feb 09. Spot gun from 8,120'to 8,140'. Tubing pressure 200 psi. Fired gun and no pressure rise. Watch with GPT and saw no incresase. POOH. NOTE: Make another run with same size gun and perf zone over again, POOH. FL 550'. RIH hole w/CCL tool, 2-1/2" x 14' HC, 6 spf, 60 degree phase and tie into Expro Log CBL log dated 10 feb 09.S pot gun from 8,106'to 8,120'. Tubing pressure 200 psi. Fired gun and no pressure rise. NOTE : Make another run with same size gun and perf zone over again, POOH. RIH with 2-1/2" x 27' HC, 6 spf, 60 deg phase and tie into Expro CBL log dated 10 feb 09. Tubing pressure is 0 psi and FL is 390'. Fired gun and saw no pressure change. POOH. Went back in hole with same type perf gun and perfed it again. Same thing. POOH. Rig down lubricator and secure well. Zero tubing pressure. 40 • • BC-18 ACTUAL Pad 3 1,055' FNL, 1,628' FWL, SCHEMATIC fllilcot.p Alaska. ).f.(. Sec. 34, T7N, R10W, S.M. Permit#: 208-185 Conductor API#: 50-133-20584-00-S1 • 20" X56 129.25ppf Prop.Des: A-028083 Top Bottom KB elevation: 181' (21'AGL) MD o' 101' WBS#: DD.08.18991.CAP.DRL TVD 0' 101' Latitude: 60°39' 29.533"N p i 'i Longitude: 151°01' 11.195'W II X: 317,475 (NAD 27) j I ` Surface Casinq Y: 2,433,986 (NAD 27) ., 13-3/8" K-55 Bottom BTC Top Spud: 1/18/2009 04:00 hrs 0 MD 0' 2,097' TD: 2/5/2009 13:30 hrs TVD 0' 2,045' Rig Released: 2/12/2009 06:00 hrs 3 16"Hole Cmt w/658 sks(290 bbls)of 12.0 ` ppg,Type 1 cmt, 91 sks(40 bbls)cmt ` returned to surface Top of 3-1/2"Tubing Cement Intermediate Casinq @ 6,860'MD 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 7,612' Excape System Details TVD 0' 7,058' Module 1-no flapper 12-1/4"Hole Cmtwl 290 sks(171 bbls)of Module 2-6 -reclosing flapper .. Class G Lead @ 10.5 ppg followed w/216 sks 9 pper (45 bbls)of Class G Tail @ 15.8 ppg. Flappers MD(RKB): 67 sks(40 bbls)returned to surface Module 6 = 8,040' Module 5 = 8,130' Module 4 = 8,480' Production Tubing Module 3 = 8,579' ) == LB 20 3-1/2" L-80 9.3 ppf EUE Mod Module 2 = 8,715' Top Bottom Module 1 = NA , MD 0' 9,230' TVD 0' 8,675' 8-1/2"Hole Cmt w/737 sks(154 bbls) Class G @ 15.8 ppg,100%returns, ^^ - LB-21 Did not bump 4 1 i , Chemical Injection Mandrel) Excape System Details• L @ 8,174'MD(RKB) - 6 Excape modules placed along • �, with 1 chemical injection mandrel - i.1 contol line fires modules 2-6 ' O - control line fires Modules 1 Tag @ 8,433'MD(2/17/13) &chemical injection mandrel 2.25"drivedown bailer / i t The bottom @ 8,825'is open 8,190'Opens @ 9,545 psi Beluga Perfs MD(RKB): 2-1/2"12 spf=8,010'-8,020'(LB-20)(7/11/13) t Module 6 = 8,020'-8,030' (Lower Beluga) 2-1/2"12 spf=8,020'-8,030'(LB-20)(7/11/13) Capillary String (Removed 04/2010) 2-1/2"12 spf=8,030'-8,037'(LB-20)(7/11/13) 2-1/2"12 spf=8,106-8,110'(LB-21)(7/11/13) Module 5 = 8,110'-8,120' (Lower Beluga) 2-1/2"12 spf=8,110'-8,120'(LB-21)(7/11/13) 2-1/2"12 spf=8,120'-8,140'(LB-21)(7/11/13) Module 4 = 8,460'-8,470' (Lower Beluga) TD PBTD Module 3 = 8,559'-8,569' (Lower Beluga) 9,244' MD 9,193' MD Module 2 = 8,695'-8,705' (Lower Beluga) 8,689'TVD 8,638'TVD Module 1 = 8,825'-8,835' (Lower Beluga) Well Name&Number: Beaver Creek Unit 18 Lease: Beaver Creek Field, A-028083 Municipality: Kenai Peninsula Borough State: Alaska Country:) USA Perforations(MD): 8,020'-8,835' (TVD): 7,465'-8,280' Angle @ KOP and Depth: 2.7°/100' @ 941' Angle/Perfs: 2.3° Dated Completed: 4/6/2009 Completion Fluid: Revised by: Stan Porhola Last Revison Date: 7/11/2013 DATA SUBMITTAL COMPLIANCE REPORT 4/26/2011 Permit to Drill 2081850 Well Name /No. BEAVER CK UNIT 18 Operator MARATHON OIL CO API No. 50- 133 - 20584 -00 -00 MD 9244 TVD 8689 Completion Date 4/7/2009 Completion Status 1 -GAS Current Status 1 -GAS UIC N REQUIRED INFORMATION --" Mud Log No Samples No Directional Survey Yes,. DATA INFORMATION Types Electric or Other Logs Run: Quad Combo, CBL, Gamma Ray, CCL, MFT (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr • Data Digital Dataset Log Log Run Interval OH / Type Med /Frmt Number Name Scale Media No Start Stop CH Received Comments /Rpt Report: Final Well R Open 5/15/2009 Final Well Repot, Tab of Cont, Equip and Cerw, I Well Details, Geo Details, Drill Data, Daily Reports E C Las 18001 9 '12eport: Final Well R 1 9300 Open 5/15/2009 OH LAS Data, Final Well Repot, Tab of Cont, Equip and Cerw, Well Details, Geo Details, Drill Data, Daily Reports w /PDF Mud graphics files. i Mud Log 2 Col 101 9244 Open 5/15/2009 MD Formation Log «og Mud Log 2 Col 101 9244 Open 5/15/2009 TVD Formation Log -'Log Mud Log 2 Col 101 9244 Open 5/15/2009 TVD Drilling Dynamics fog Mud Log 2 Col 101 9244 Open 5/15/2009 MD Drilling Dynamics Log Induction /Resistivity 25 Blu 7612 9231 Open 5/15/2009 MD Array induc, Vectar 6 Process , k6g Induction /Resistivity 25 Blu 2097 7616 Open 5/15/2009 MD Array lnduc, Shallow I Focussed -''Log Induction /Resistivity 25 Blu 7612 9231 Open 5/15/2009 MD Array Induc, Shallow Focussed 'Log Induction /Resistivity 25 Blu 2045 7062 Open 5/15/2009 TVD Array Induc, Shallow Focussed Log Induction /Resistivity 25 Blu 7058 8676 Open 5/15/2009 TVD Array lnduc, Shallow Focussed 'Log Neutron 25 Blu 2097 7570 Open 5/15/2009 MD Photo Dens, Dual Spaced Nuetron -L"Og Neutron 25 Blu 7612 9185 Open 5/15/2009 MD Photo Dens, Dual Spaced Nuetron DATA SUBMITTAL COMPLIANCE REPORT 4/26/2011 Permit to Drill 2081850 Well Name /No. BEAVER CK UNIT 18 Operator MARATHON OIL CO API No. 50- 133 - 20584 -00 -00 MD 9244 TVD 8689 Completion Date 4/7/2009 Completion Status 1 -GAS Current Status 1 -GAS UIC N g Caliper log 5 Blu 2097 7569 Open 5/15/2009 MD Hole Volume, Caliper g Caliper log 5 Blu 7612 9184 Open 5/15/2009 MD Hole Volume, Caliper —Cog Induction /Resistivity 25 Blu 2097 7616 Open 5/15/2009 MD Quad Combo Log Induction /Resistivity 25 Blu 2097 7616 Open 5/15/2009 MD Array Induction, Vectar Processing See Notes 25 Blu 7612 9231 Open 5/15/2009 MD Quad Combo Log g Sonic 25 Blu 2097 7601 Open 5/15/2009 MD Comp Sonic • g Sonic 25 Blu 7612 9216 Open 5/15/2009 MD Comp Sonic -Cog Formation Tester 5 Blu 7710 9012 Open 5/15/2009 MD Formation Tester Cement Evaluation 5 Blu 6700 8710 Open 5/15/2009 Dual Radial CBL, GR< CCL 10- Feb -2009 Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION / Y / Well Cored? N Daily History Received? l% / N Chips Received? Y / Formation Tops 0 N Analysis `77 N Received? • Comments: Compliance Reviewed By: ..1k _ Date: a (;1 40 Marathon Alaska Production LLC Alaska Asset Team r"" M Marathon P.O. Box 1949 MARATHON Alaska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 RECEIVED November 25, 2009 ! Alaska Oil & Gss Cons. Commissio Mr. Winton Aubert Anchorage Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 CI 6 Reference: 10 -404 Report of Sundry Well Operations o Field: Cannery Loop Unit ()I) Well: Beaver Creek Unit #18 Dear Mr. Aubert: Attached for your records is the10 -404 Report of Sundry Well Operations for BC -18 well. This report covers the work performed to install a capillary string to a setting depth of 8,700' MD. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, — e-e4)1/ 11- 4 Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10 -404 Report of Sundry Well Operations cc: Houston Well File Well Schematic Kenai Well File Operations Summary KJS iht;h1Vh STATE OF ALASKA ALASKIRIL AND GAS CONSERVATION COMMIS.N DEC () i (i1N1 -0°a1 REPORT OF SUNDRY WELL OPERATIONsAask$ Oil & 6es Cons. rammisstoo 1. Operations Abandon U Repair WeIIU Plug Perforations Li Stimulate Li Other L sralled Capillary Performed: Alter Casing ❑ Pull Tubin❑ Perforate New Pool ❑ Waiver Time Extension ❑ String Change Approved Program ❑ Operat. Shutdowr❑ Perforate ❑ Re -enter Suspended Well ❑ 2. Operator 4. Well Class Before Work: ' Permit to Drill Number: Name: Marathon Oil Company Development 0 Exploratory ❑ 208 -185 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ \ API Number: I3s tl, Kenai Alaska, 99611 -1949 ` 50- 133 - 20584 -00- '1 f )9 7. KB Elevation (ft): 4 4. Well Name and Number: 160' (21' AGL) Beaver Creek #18 8. Property Designation: O. Field /Pool(s): A - 028083 Beaver Creek Field / Beluga Pool 11. Present Well Condition Summary: Total Depth measured \ 9,244' feet Plugs (measured) NA true vertical \ 8,689' feet Junk (measured) NA Effective Depth measured 9,193' feet true vertical 8,638' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 20" 101' 101' Surface 2,076' 13 -3/8" 2,097' 2,045' 3,450 psi 1,950 psi Intermediate 7,591' 9 -5/8" 7,612' 7,058' 5,750 psi 3,090 psi Production 9,209' 3 -1/2" 9,230' 8,675' 10,160 psi 10,540 psi Liner Perforation depth: Measured depth: 8,020' - 8,835' True Vertical depth: 7,465' - 8,280' Excape Tubing 3 -1/2" L -80 9,230' Tubing: (size, grade, and MD) Capillary String 3/8" 2205 Stainless Steel 8,700' Packers and SSSV (type and measured depth) NA NA 12. Stimulation or cement squeeze summary: Intervals treated (measured): A 3/8' capillary string was installed to a setting depth of 8,700' MD to create a path for foamed insertion to aid in welibore fluid removal. Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 1,590 43 0 378 Subsequent to operation: 0 1,720 - 0 363 14. Attachments:5 Well Class after work: Copies of Logs and Surveys Run Exploratory ❑ Development ID Service ❑ Daily Report of Well Operations X . Well Status after work: Oil ❑ Gas 0 WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ 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: NA Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Technician Signature JA7V,..d �, P hone (9 07) 283 -1371 Date November 25, 2009 W P 19 Form 10 -404 Revised 04/2006 Submit Original Only • Marathon • Operations Summary Report r Oil Company Well Name: BEAVER CREEK 18 Daily Operations Report Date: 11,20/2009 Job Category: R &M MAINTENANCE 24 Hr Summary Install cap string at 8700' MD. Re- install wellhouse. Turn well back over to production. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 08:30 09:00 0.50 SAFETY MTG AF Arrive Location, obtain work permit„ PJSM - topics discussed - JSA's, assigned jobs, slips, trips, falls, pinch points, overhead loads, active gas production pad, red lights for fires, blue lights for gas emission, siren for audible, muster area, emergency numbers, emergency vehicle and procedures, extreme cold and warming up, buddy rule and three second rule., hand safety. 09:00 10:00 1.00 RURD EQIP AF Disconnected electric from wellhouse. Rigged up crane and removed wellhouse from wet. 10:00 14:00 4.00 RURD COIL AF Laid out containment around well tree. Rigged up cap -sting unit and placed containment under unit. Removed well cap. Installed pack -off and extension. Set fluid control valve at 3,655psi. Set injector on tree and performed 500# pull test. Perform pressure test to 1,500 Ibs, test was successful. 14:00 18:00 4.00 RUNPUL COIL AF Run in hole with 3/8" stainless steel capillary tubing to 8684. Set down multiple times. Worked string through module down to 8715. Pulled up hole to 8,700' and landed 318" cap string. Set packoff and spooled off excess string. 18:00 19:00 1.00 RURD COIL AF Rig down coiled tubing unit, spool up excess coil, re -set wellhouse, hang signs on swab, upper and lower master valves. Prepare well turnover form. 19:00 19:30 0.50 SECURE WELL AF move off location, turn in work permit and return to home Iocatifons www.peloton.com Report Printed: 11,25,2009 BC -18 II Permit #: 208 -185 API #: 50- 133 - 20584 -00 -S1 Pad 3 Prop. Des: A- 028083 1,055' FNL, 1,628' FWL, KB elevation: 181' (21' AGL) Sec. 34, T7N, R10W, S.M. MARATHON WBS #: DD.08.18991.CAP.DRL Latitude: 60° 39' 29.533" N h Conductor Longitude: 151° 01' 11.195' W 20" X56 129.25ppf X: 317,475 (NAD 27) Top Bottom Y: 2,433,986 (NAD 27) - MD 0' 101' Spud: 1/18/2009 04:00 hrs TVD 0' 101' TD: 2/5/2009 13:30 hrs Rig Released: 2/12/2009 06:00 hrs Surface Casing PA #: 891008868A 13 -3/8" K -55 68 ppf BTC Top Bottom MD 0' 2,097' TVD 0' 2,045' 16" Hole Cmt wl 658 sks (290 bbls) of 12.0 ppg, Type 1 cmt , 91 sks (40 bbls) cmt j..111 ,,,, .. ti returned to surface Top of 3 - 1/2" Tubing Cement r l-rc, Intermediate Casing @ 6,860' MD 's 9 -5/8" L -80 40 ppf Butt Top Bottom MD 0' 7,612' Excape System Details i TVD 0' 7,058' 12 -114" Hole Cmt w/ 290 sks (171 bbls) of Flappers MD (RKB): Class G Lead @ 10.5 ppg followed w/ 216 sks Module 6 = 8,040' (45 bbls) of Class G Tail @ 15.8 ppg. Module 5 = 8,130' 67 sks (40 bbls) returned to surface Module 4 = 8,480' a, Module 3 = 8,580' itil Production Tubing Module 2 = 8,715' 3 - 112" L - 80 9.3 ppf EUE Mod Module 1 = NA Top Bottom MD 0' 9,230' 4fi TVD 0' 8,675' r. L%; 8 -1/2" Hole Cmt w/ 737 sks (154 bbls) 4' Class G + @ 15.8 ppg, 100% returns, Chemical Injection Mandrel/ Did not bump @ 8,174' MD (RKB) Excape System Details Capillary Tubing (Installed 11/ 20/09) 6 Excape modules placed along 3/8" OD 2205 0.049" with 1 chemical injection mandrel Stainless Steel Wall Thickness , - Red contol line fires modules 2 - control line fires Modules 1 Top Bottom & chemical injection mandrel MD 0' 8,700' TO 4,, The bottom @ 8,825' is open TVD 0' 8,145' m 8,190' Opens @ 9,545 psi Tagged @ 8,724' w/ 1.75" GR 1 la Beluga Perfs MD (RKB): Tagged @8,840'w /1.61 "GR - Module 6 = 8,020' - 8,030' (Lower Beluga) Module 5 = 8,110' - 8,120' (Lower Beluga) lil (4/26/09) Module 4 = 8,460' - 8,470' (Lower Beluga) I(� Module 3 = 8,559' - 8,569' (Lower Beluga) 1 1 Module 2 = 8,695' - 8,705' (Lower Beluga) Module 1 = 8,825' - 8,835' (Lower Beluga) TD PBTD 9,244' MD 9,193' MD 8,689' TVD 8,638' TVD Well Name & Number: Beaver Creek Unit 18 Lease: Beaver Creek Field, A- 028083 Municipality: Kenai Peninsula Borough State: Alaska I Country:I USA Perforations (MD): 8,020' - 8,835' (TVD): 7,465' - 8,280' Angle @ KOP and Depth: 2.7° / 100' @ 941' Angle /Perfs: 2.3° Dated Completed: 4/6/2009 Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 11/25/2009 • Marathon Oil Company Alaska Asset Team / M\ Marathon P.O. Box 1949 Kenai, AK 99611 M ARATHON Oil Company Telephone 907/283 -1371 Fax 907/283 -1350 May 12, 2009 Mr. Tom Maunder R EC E I VE D Alaska Oil & Gas Conservation Commission "SAY 1 4 �C 333 W 7 Ave 4 ia s k a Anchorage, Alaska 99501'+ G as Cans Anchorage o� 'ssia, Reference: 10 -407 Well Completion Report and Log Field: Beaver Creek Field Well: Beaver Creek 18 Dear Mr. Maunder: Enclosed please find the Well Completion Report, 10 -407, for BC -18 well. BC -18 was completed into the Beluga formation utilizing six Excape modules. All modules were perforated and fracture stimulated. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, i<1/0/ Kevin J. Skiba Engineering Technician Enclosures: 10 -407 Well Completion Report & Log cc: Houston Well File See Attachment List Kenai Well File KJS / �� CLR RECEIVED STATE OF ALASKA S-//:49 ` ALLKA OIL AND GAS CONSERVATION COMMISSION MAY 1 4 2009 i."164 WELL COMPLETION OR RECOMPLETION REPORT rAN L" niss 0 1 Oil [ii Gas 0 Plugged ❑ Abandoned ❑ Suspended ❑ I b`:1iay�llt�eigs4 ,„ nn s• ' n' 20AAC 25.105 20AAC 25.110 Development lj‘nchorag8 Exploratory ❑ GINJ❑ WINJ ❑ WDSPL❑ WAG ❑ Other No. of Completions: Excape Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 4 12. Permit to Drill #: 208 -185 . Marathon Oil Company Aband.: 4/2009 Sundry #: 309 -067 3. Address: PO Box 1949 6. Date Spudded: 13. API Number: Kenai Alaska, 99611 -1949 1/102009 50 -133- 20584 -00 -00 4a. Location of Well (Governmental Section): 7. Date TD Reached: - 14. Well Name and Number: Surface: 1,055' FNL, 1,628' FWL, Sec. 34, T7N, R10W, S.M. 2402009 Beaver Creek #18 Top of Productive Horizon: I AR 5"/A1/1) 8. KB (ft above MSL): 160' 15. Field /Pool(s): 575' F /L, 1,900' FL, Sec. 27, T7N, R10W, S.M. Ground (ft MSL): 139' Total Depth: 9. Plug Back Depth(MD +TVD): Beaver Creek Field / Beluga Pool 633' FSL, 1,866' FEL, Sec. 27, T7N, R10W, S.M. 9,193' 8,638' 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 317,475.0 y - 2,433,986.0 Zone- 4 9,244' 8,689' A - 028083 TPI: x- 319,224.9 y- 2,435,745.6 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 319,258.2 y - 2,435,795.0 Zone- 4 NA 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Quad Combo, CBL, Gamma Ray, CCL, MFT 22. 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 20" 129.25 X56 0' 101' 0' 101' Driven NA 13 -3/8" 68 K -55 0' 2,097' 0' 2,045' 16" 658 sks, Type 1 91 sks 9 -5/8" 40 L -80 0' 7,612' 0' 7,058' 12 -1/4" 506 sks, Class G 67 sks 3 -1/2" 9.3 L -80 0' 9,230' 0' 8,675' 8 -1/2" 737 sks, Class G 0 sks 23. Open to production or injection? Yes 0 No If Yes, list each 24. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) MD TVD Perf Size #/ft 3 -1/2" 9,230' NA 8,020' - 8,030' 7,465'- 7,475' 0.28" 6 spf 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 8,110' - 8,120' 7,555'- 7,565' 0.28" 6 spf DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 8,460' - 8,470' 7,905'- 7,915' 0.28" 6 spf 8,020' - 8,030' 21,640 lb of 20/40 sand 8,559' - 8,569' 8,004' - 8,014' 0.28" 6 spf 8,110' - 8,120' 19,250 lb of 20/40 sand & 2,750 lb of flex sand 8,695' - 8,705' 8,140' - 8,150' 0.28" 6 spf 8,460' - 8,470' 17,080 lb of 20/40 sand 8,825' - 8,835' 8,270' - 8,280' 0.28" 6 spf 8,559' - 8,569' 13,440 lb of 20/40 sand 8,695' - 8,705' 11,302 lb of 20/40 sand & 1,638 lb of flex sand 8,825' - 8,835' 8,480 lb of 20/40 sand 26. PRODUCTION TEST Date First Production: 4/15/2009 Method of Operation (Flowing, gas lift, etc.): Flowing Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: April 29, 2009 24 Test Period — 0 1,700 48 64/64 100% Gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 390 0 24 -Hour Rate —". 0 1,700 48 NA 27. CORE DATA Conventional Core(s) Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No 0 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. ... R , .,_ X09. Form 10 -407 Revised 2/2007 CONTINUED ON REVERSE 6 _ s • 28. GEOLOGIC MARKERS (List all formations anlikers encountered): 29. FORMATION TESTS NAME TVD Well tested? 0 Yes o If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost - Top detailed test information per 20 AAC 25.071. Permafrost - Base The following Lower Beluga Intervals were frac'd /stimulated as described on Side 1 of this Sterling BO 5,270' 4,867' document. All these zones were tested together at an IP of 1.5 MMcf /d at 1000 psi. Upper Beluga UB1 6,296' 5,793' LB15 7,642' 7,088' 8,017' - 8,027' MD LB16 7,690' 7,136' 8,109' - 8,119' MD LB17 7,819' 7,264' 8,460' - 8,470' MD LB18 7,859' 7,305' 8,558' - 8,568' MD LB19 7,957' 7,402' 8,695' - 8,705' MD LB20 8,004' 7,450' 8,825' - 8,835' MD LB21 8,107' 7,552' LB22 8,165' 7,610' LB23 8,218' 7,663' LB24 8,334' 7,779' LB25 8,412' 7,857' LB26 8,498' 7,942' LB27 8,615' 8,060' LB28 8,671' 8,115' LB29 8,809' 8,253' LB30 8,897' 8,341' LB31 8,957' 8,402' LB32 9,010' 8,455' LB33 9,049' 8,493' Formation at total depth: LB33 30. List of Attachments: See Attachment List 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283 - 1371 Printed Name: Craig L. Rang Title: Senior Completions Engineer Signature: at Phone: (907) 283 -1372 Date: May 12, 2009 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 la: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for / njection, 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 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: 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 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: 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 29: 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 2/2007 • • Marathon Operations Summary Report �'+ Well Name: BEAVER CREEK 18 NAB ATN3H oil Company Qtr /Qtr, Block, Sec, Town, Range Field Name License No. State /Province Country SEC 34 T 7N R 10 W BEAVER CREEK ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) o a 'z lange DistanC KB•Ground Distance (ft) Spud Date Rig Release Date 158.00 21.00 1/18/2009 Daily Operations Report Date: 1/15/2009 Job Category: DRILLING 24 Hr Summary Move rig off of BC -19 location. Remove matting boards and clean up spilled diesel. Attempt to lay felt. Shut down due to high wind. Cony lay felt & liner. Lay matting boards. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 16:00 4.00 DEMOB RIG AF Accept rig from BC -19 12:00hrs 01/14/2009. PJSM. Move pump room, generator house, boiler house, and water tank. Prep carrier and move off. Move mud boat. Install gooseneck and move sub base. Pick up matting boards. Move rig components off of BC -19 & out of way. 16:00 19:00 3.00 DEMOB RIG TA ESEI Continue to pick up matting boards and clean up residual diesel spill area on BC -19. 19:00 21:30 2.50 PREP LOC AF Grade BC -18 location while continue to pick & dispose liner &felt from BC -19 location. 21:30 23:00 1.50 PREP LOC TA WD Attempt to lay felt & liner on BC -18 location. Too windy. Shut down operation until wind dies down. Release Udelhoven. Cancel Weaver Bros. 23:00 00:00 1.00 PREP LOC TA WD PJSM: Make another attempt to lay felt, wind picked up again. Shut the job down. 00:00 02:00 2.00 PREP LOC TA WD PTSM; Continue picking up & disposing felt from BC -19 location while waiting for wind to die down. All while organizing parts house & working on power boxes for centrifuge house. 02:00 03:00 1.00 PREP LOC AF Finish laying felt & liner on BC -18. 03:00 06:00 3.00 PREP ILOC AF PJSM: Lay matting boards on BC -18. Report Date: 1/16/2009 Job Category: DRILLING 24 Hr Summary Finish setting matting boards on BC -18 location. Move in & rig up GD -1 over BC -18 slot. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:00 3.00 PREP LOC AF PJSM. Lay matting boards, chip ice and snow from matting boards. 09:00 12:00 3.00 MOB RIG AF PJSM w /truck drivers for moving rig. Set generator house, boiler house, sub base, water house, mud boat, and pump room. Berm around rig. 12:00 15:00 3.00 RURD RIG AF PTSM: Set pits house, carrier, mechanics shop & parts house. Pull pits & pump room together. Level carrier & install turnbuckles. Pull wires from generator house to pits & pump room. Raise derrick. 15:00 00:00 9.00 RURD RIG AF PJSM w/ ASRC crane operator Crane fuel tank, stairs, gray iron, dog house, choke house, back landing & windwall, flow line, panic line & BOP connex. Install roof over #1 cooling tower. Run water line & fill rig water tank. Raise gas buster. Install trip tank. Spot catwalk. Pull wires from dog house & choke house to carrier. R/U hydraulic lines, dresser sleeves & "U "tube. Heat up boiler. Install break linkage. R/U pop -off lines. Spot diverter stack. 00:00 06.00 6.00 RURD RIG AF PTSM: Prep & scope up derrick. Adjust guy wires. Install beaver slide, stairs, handrails, light above cooling towers, carrier bows & tarps. Install hydraulic cylinder socks. Replace hose to flow line jet. R/U choke (lines to gas buster & flow line. R/U steam aroung rig. Replace water valve in choke house. R/U torque tube. Report Date: 1/17/2009 Job Category: DRILLING 24 Hr Summary Rig up GD -1 over BC -18. Install starting head and N/U 21 1/4" diverter. Fill pits with water. Ops Trouble start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF Winterize cellar. R/U shock hoses for mud pumps. Set matting boards for mud pump house#3. C/0 auxillary hydraulic fittings on the top drive. R/U turnbuckles on the top drive torque tube. Replace water line to camp trailer. Relocate water line to rig. Trouble shoot ODS manrider. 12:00 16.00 4.00 RURD RIG AF PJSM. P/U and hang top drive. Install top drive slide. R/U kelly hose and top drive service loop. Test top drive. Spot pump house#3, hansen tank, Baker MWD house, and Epoch mudlogging unit. 0/0 saver sub on top drive. Spot directional drillers trailer house. 16 :00 18:30 2.50 RURD RIG AF PJSM: Connect pop off for pump#3. Install 20" starter head &test to 400 psi f/ 10 min. Weld 2" nipple on 20" conductor. www.peloton.com Report Printed: 4/24/2009 1 • Marathon Operations Summary Report oaTxn Oil Company Well Name: BEAVER CREEK 18 Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 158.00 21.00 1/18/2009 Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 158.00 21.00 1/18/2009 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 18:30 00:00 5.50 RURD RIG .AF PJSM: Install top turnbuckle & adjust torque tube. Install bails & elevators. R/U pump #3 suction line, pop -off & shock hose. R/U Epoch shack. Install mud manifold, choke hose & splash plates. R/U rig tongs, geolograph & pipe spinners. Run lines to hanson tank. Install 2" valve on conductor. 00:00 06:00 6.00 RURD RIG AF PTSM: R/U kill line to conductor. Set stack. R/U directional drillers trailer houe. R/U derrick board. Repair Epoch RPM sensor on top drive. Install plumbing on #1 cooling tower. Insulate pump #3 suction & pop -off lines. Raise flowline on pitcher nipple. Install knife valve on stack. R/U koomey lines. Daily Operations Report Date: 1/18/2009 Job Category: DRILLING 24 Hr Summary N/U diverter and diverter line. Mix spud mud. Rotate starter head & retest to 500 psi f/ 10 min. Finish N/U diverter system & all related components. R/U MWD & mud logging unit. Test diverter system & gas alarms. P/U & stand back drill pipe, hwdp & jars. Test run mud pump #2 (ok). M/U 16" bit, mud motor, string stab & x/o sub. Fill hole & check for leaks. Test run cooling tower & troubleshoot. Test run pump #3 (low oil in gear end). Clean out 20" conductor f/ 30' -101'. Drill 16" vertical hole f/ 101' -197'. Spud well @ 04:00 hrs on 1 -18 -2009. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:00 3.00 RURD RIG AF R/U gas detectors. Cont. working on cooling tower. Cut and slip geolograph line. Test koomey bottles. Mix mud. 09:00 10:00 1.00 RURD RIG AF PJSM. Back out lock downs on starter head and rotate starter head so that diverter line would pass #3 pump suction. Lock down starter head and test to 500psi /10min OK. Spot BJ cement unit and cement silo. Mix mud. 10:00 12:00 2.00 RURD RIG AF N/U diverter line. Mix mud. R/U MWD unit and mud logging unit. 12:00 16:00 4.00 RURD RIG AF PTSM: N/U bell nipple and hook up flow line. Finish N/U diverter line. Mix mud. R/U MWD shack and mud logging unit. 16:00 17:00 1.00 RURD RIG AF PJSM: Rack and strap 5" DP. Mix mud. Test gas alarms. 17:00 18:00 1.00 TEST ROPE AF Test 21 1/4" diverter. Lou Gramaldi AOGCC witnessed test. Tim Lawlor BLM waved witness. 18:00 23:00 5.00 PULD DP AF PJSM: P/U & stand back 70 jts 5" dp, 20 jts 5" hwdp &jars. Strap stands in derrick. 23:00 00:00 1.00 PULD BHA. AF P/U floor safety valves. Stage BHA subs & handling tools on rig floor. Test run pump #2 (ok). 00:00 01:00 1.00 PULD BHA AF PTSM: P/U 16" bit, mud motor, string stabilizer & WO sub. Tag bottom @ 30'. Fill hole & check for leaks (ok). 01:00 02:30 1.50 TEST EQIP TA MSFL Test run #1 cooling tower & trouble shoot (will continue to monitor). Test run mud pump #3 & troubleshoot (low oil in gear end). 02:30 04:00 1.50 CLNOUT CSG AF Clean out 20" conductor f/ 30' -101' w/ 375 gpm & 40 rpm's. 04:00 06:00 2.00 DRILL ROT AF Drill 16" rat hole f/ 101' -197' for directional tools @ 375 gpm, 400 psi, 40 rpm, tq 1000 ft-lb, wob 0 -5 klb. ART: 1.7 hrs. Spud well @ 04:00 hrs. on 1/18/2009. Report Date: 1/19/2009 Job Category: DRILLING 24 Hr Summary Drill 16" hole f/ 197' -215'. POOH. P/U remaining directional components. RIH. Wash last stand to bottom. Cont drill 16" hole f/ 215'- 1260'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 DRILL ROT AF Drill F/197' to 215'. Very rough drilling. Gravel, sand and coal across shakers. 350GPM, 450psi, 40RPM, 3K ft-lb torque ,2K WOB. ART =.Shrs 07:00 07:30 0.50 CIRC MUD AF Wash and ream F/215'to 155'. Circ. clean. 07:30 08:00 0.50 TRIP DP AF POOH to 44' top of BHA. 08:00 10:00 2.00 TRIP BHA AF PJSM. M/U BHA. Orient directional tools. RIH and wash last stand down to 215'. 10:00 12:00 2.00 DRILL ROT AF Drill 16" vertical hole F/216' to 287'. Very rough drilling. Gravel sand and coal across shakers. 350- 420GPM, 500- 650PSI, 2 -3K ft-lb, 45RPM, 5 -6K WOB. ART= 1.3 hrs. 12:00 18:00 6.00 DRILL ROT AF Drill 16" vertical F/287' to 577' . Some rough drilling. Gravel, sand and coal across shakers. Problems with gravel plugging flow line. 420- 480GPM, 650- 800psi, 2 -3K Ft-lb, 45- 55RPM, 5K WOB, ART= 3.3hrs. 18:00 00:00 6.00 DRILL ROT AF Drill 16" vertical hole f/ 577' -941' @ 530 gpm, 1100 psi, wob 5 -10 klb, 60 rpm, tq 2000 fl -Ibs, p/u 60 klb, s/o 60 klb, rot wt 60 klb. ART: 3.7 hrs. 00:00 06:00 6.00 DRILL ROT AF PTSM: Drill 16" build section f/ 941'-1260'@ 550 gpm, 1200 psi, wob 3 -10 klb, 50 rpm, tq 3000 ft-Ibs, p/u 65 klb, s/o 65 klb, rot wt 65 klb, ART: 1.4 hrs, AST: 2.2 hrs. www.peloton.com Report Printed: 4/24/2009 • • Marathon Operations Summary Report Mature tH Oil Company Well Name: BEAVER CREEK 18 Daily Operations Report Date: 120/2009 Job Category: DRILLING 24 Hr Summary Drill 16" hole f1 1260'- 2107', Pump hi -vis sweep & con't circ until hole clean. Wiper trip (12107' -81'. LJD shock sub. Service rig. RIH f/ 81'- 2054'. Wash last std to bottom f7 2054'- 2107'. Pump hi -vis sweep w/ nut plug & circ until hole clean. POOH w/ BHA #1@ 1800'. Ops Trouble I_ Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 16" build section F/1260'to 1571'. P/U 70K,S /0 70K, ROT 70K 550GPM, 1100psi, 55RPM, 1 -3K Ft -lb, WOB 5 -10K. ART= .7hrs AST= 3.6hrs 12:00 18:00 6.00 DRILL POT AF PTSM: Drill 16" build section F/1571' to 1988'. P/U 80K, 8/0 70K, Rot 75K, 550- 600GPM, 1150- 1500psi, 55- 60RPM, 3 -5K Ft -lb, W0B 5 -10K. ART= 3.3hrs AST= 1.0hrs. 18:00 20:30 2.50 DRILL ROT AF Drill 16" build section f/1988' -2107' @ 600 gpm, 1550 psi, wob 10 -25 klb, 60 rpm, tq 5000 ft-Ibs, p/u 82 klb, s/o 77 klb, rot wt 70 klb, ART: 1.2 hrs, AST: 0.7 hrs. 20:30 22:30 2.00 CIRC MUD AF Pump 40 bbl hi -vis sweep @ 600 gpm & 90 rpm's. Con circ until hole clean. Monitor well (static). 22:30 01:30 3.00 TRIP WIPP AF PJSM: Wiper trip. POOH (12107' -81'. SLM (no corrections). Hole slick. Proper fillup. Lay down shock sub & two crossover subs. 01:30 02:30 1.00 SERVIC RIG AF PJSM: Service rig. Lube top drive, carrier, crown & blocks. Visual inspection on top drive & derrick. 02:30 04:00 1.50 TRIP VVIPR AF PJSM: RIH f/ 81- '2054'. Wash down f/ 2054' - 2107'. No fill on bottom. BHA taking 10 klbs max wt f/ 1380'- 1750'. Cleaned up after stroking stands up & down through interval one time. No connecting to top drive required. Recheck (ok). No fill on bottom. 04:00 05:30 1.50 CIRC MUD AF Pump 40 bbl hi -vis sweep w/ nut plug & con't circ until hole clean. Sweep returned @ calculated strokes (gauge hole). Circ @ 555 gpm w/ 90 rpm's. Monitor well (static). 05:30 06:00 0.50 TRIP WIPP AF PJSM: POOH w/ BHA #1 @ 1800'. Report Date: 12112009 Job Category: DRILLING 24 Hr Summary POOH & UD BHA #1. Clear rig floor. Rig up to run 13 -3/8" csg. Run 45 jts 13 -3/8" csg to 2097'. Rig down csg tools. R/U false rotary table. M/U stab -in tool & RIH w/ 5" dp. Space out & stab into float collar. Circulate 1.5 X csg volume. Conduct PJSM w/ BJ cement crew. Pump 40 bbl spacer. Test cmt lines to 2760 psi. Mix & pump 12.0 ppg cmt slurry until cmt returns to surface. Displace cmt w/ 33 bbls mud. C.I.P. @ 06:00 hrs. Tim Lawlor - BLM witnessed cement job. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TRIP DP AF POOH wet w/ DP F /1800'to 200'. Hole in good condition. 08:30 10:30 2.00 TRIP BHA AF PJSM. POOH w /BHA UD MWD, string stabilizer, motor and bit. Threads on monels and top of motor galled. 10:30 14:30 4.00 RURD CSG AF PJSM. 0/0 to long bales. R/U to run 13 3/8" CSG. 14:30 20:00 5.50 RUN CSG AF PJSM w/ Weatherford casing crew: P/U 13 -3/8" shoe track & check floats (ok). Run total 45 jts 13-3/8", 68 ppf, K -55, BTC casing to 2097' @ 20:00 hrs. Float shoe set @ 2097'. Top of float collar set @ 2051.8'. Hole slick. 20:00 22:30 2.50 RURD OTHR AF PJSM: R/D casing slips, tongs & fillup line. R/U rig tongs & spinners. 0/0 bails & elevators. R/D stabbing board. Blow down mud lines & check cmt (line. R/U false rotary to run inner string cmt job. 22:30 01:00 2.50 TRIP DP AF PJSM: M/U stab -in tool, 8' pup jt & centralizer. RIH w/ 5" dp to top of 13-3/8" float collar. 01:00 02:00 1.00 CIRC MUD AF Stab into float collar & circulate 1.5 X csg volume @ 5 bpm. Conduct PJSM w/ BJ cement crew & vac truck drivers while circulating. 110:00 06:00 4.00 PUMP CMT AF Pump 40 bbls Mud Clean 11 preflush w/ rig pump. Switch to BJ unit, pump 3 bbls water & test cmt lines to 2760 psi (ok). Mix & pump 658 sacks Type 1 cmt w/ 22% LW -6, 20% MPA -1, 2% CaCl2, 1% SMS, 0.3% CD -32, 0.05% Static Free, 1 gal /100 sks FP -6L, 12.0 ppg, 2.483 cu.ft. /sk yield (290 bbls total cmt slurry), 10.328 gal water /sk (162 bbls total mix water), 4:04 hrs thickening time. Displace cement w/ 33 bbls mud. Had 40 bbls cement returns back to surface w/ 100% returns during entire job. Continuous problems with BJ unit losing power & maintaining 5 bpm pump rate. C.I.P. @ 06:00 hrs. Float shoe set @ 2097'. Top of float collar set @ 2051.8'. Tim Lawlor - BLM witnessed cement to surface. Report Date: 1/22/2009 Job Category: DRILLING 24 Hr Summary Sting out of float collar and UD 2 joints DP. Insert DP wipper plug and pump through DP. POOH w /5" DP innerstring. UD centralizer and cement stinger. Empty pits. nipple down diverter, make cuts on 20' and 13 3/8, install 13 518 5M vetco grey multi bowl well head. Nipple up 13 5/8 5M BOPE. P/U drill pipe, mix mud. www.peloton.com Report Printed: 4/24/2009 • • Marathon Operations Summary Report NAp :JIM, Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 PUMP CMT AF Sting out from float collar and LID 2 -5" DP singles. 06:30 07:30 1.00 PUMP CMT AF Drop DP wiper plug and pump through inner string. Flush stack ,mud manifold, and cement lies with retarded water. 07:30 09:30 2.00 PUMP CMT AF POOH w /5" DP innerstring. UD DP centralizer, 8' pup and cement stinger. 09:30 11:30 2.00 NUND ROPE AF Flush overhead lines in pits. Flush stack. Remove kill line from conductor. Clean and organize rig floor. Empty pits and flush #3 mud pump. NID diverter lines. 11:30 13:30 2.00 NUND BOPE AF PJSM. N/D diverter line and knife valve. R/D bleeder line, fill up line, trip tank lines, turnbuckles and actuator for trip tank valve. Remove all bolts on diverter stack. Empty and clean pits. 13:30 17:30 4.00 NUND BOPE AF PJSM. Rough cut 13 3/8 csg. lay down cut joint. Nipple down bell nipple. Remove 21 1/4" diverter. 17:30 21:30 4.00 NUND BOPE AF Remove starter hd., make cut on 20" conductor, make final cut on 13 318 csg. Dress stub, Install 13 5/8 -5M Vetco grey multi bowl slip on wellhead. 21:30 22:00 0.50 SAFETY MTG AF Stopped the job and held safety meeting, to review recent incidents and how to prevent them. 22:00 00:00 2.00 NUND BOPE AF Energize seals on the 13 5/8" slip on Vetco wellhead. Test seals to 1500psi /10min. N/D and remove single gate rams from bottom of BOP stack. N/U 36" 13 518" spacer spool 00:00 06:00 6.00 NUND BOPE AF PJSM. Move in and nipple up 13 5/8 -5M BOPE S, Rd,A BOP stack. Replace discharge line on hopper in mud pits. Daily Operations Report Date: 1/23/2009 Job Category: DRILLING 24 Hr Summary N/U BOPE. Weekly safety meeting. Test BOPE. Test CSG, P/U 156 jts. 5" DIP Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 NUND BOPE AF PJSM. Fill pits with water and mix flopro mud. Cont. NIU 13 5/8" 5M S,Rd,A BOPE. R/U mouse hole. Set pipe racks. N/U check valve and kill line. N/U choke line. R/U trip tank valve actuator. R/U chains and turnbuckles. R/U bleeder lines. 12:00 13:00 1.00 SAFETY MTG AF Weekly safety meeting with both crews and all service personnel. 13:00 16:30 3.50 NUND BOPE AF Install rig floor drip pan and drain hose. Layout DP on rack. M/U test plug and 5" test joint and RIH and set. Function BOP's. Prep for BOP test. Cont. to mix mud. 16:30 20:00 3.50 TEST BOPE AF Test 2 7/8" X 5 1/2" variable rams, blind rams, annular, choke line NCR, choke line manual valve, kill line inner and outer manual valves, Kill line check valves, top drive upper and lower valves, safety valve, IBOP valve to 25013000psi . Tested all gas alarms. Performed koomey performance test. Test witnessed by Tim Lawlor of the BLM. AOGCC Jim Reg waved witness. 20:00 21:00 1.00 TEST CSG AF PJSM; Test 13 3/8 csg., 1500 psi for 30min. no loss. 21:00 21:30 0.50 RUNPUL WBSH 'AF PJSM; Install wear bushing w/ 12 3/8 ID, blow down choke and mud lines. 21:30 06:00 8.50 PULD DP AF PJSM; Pick up and rabbit, 156 Jts.,5" -19.5# S -195 , 4 1/2 IF drill pipe. Strap in derrick. Report Date: 1/24/2009 Job Category: DRILLING 24 Hr Summary Pill and rack back 5" DP. P/U bit and BHA. RIH and drill shoe track and shoe. Cleanout old hole and 20' new hole to 2027'. Dsiplace to new flopro mud. Perform FIT to 12.0PPG. POOH.UD Bit, P/U 12 1/4 PDC, MWD, RIH, Drill f/2127' -2700' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 PULD DP AF Cont. to P/U 5" DP and rack back in derrick(total 156jnts). 08:30 10:00 1.50 PULD BHA AF PJSM. P/U 12 1/4" mill tooth bit, mud motor, 12 1/8" stabilizer, and pony monel collar. 10:00 11:30 1.50 REPAIR EQIP TA MDDS PJSM. Dress threads on monel CSDP and steel X/0. 11:30 13:30 2.00 TRIP DP AF PJSM. RIH and tag cement @ 2045'. 13:30 14:30 1.00 DRILL CMT AF Drill FC @ 2052' and shoe track and shoe @ 2097'. Hard cement across shakers. Clean old hole to 2007. 14:30 15:00 0.50 DRILL 'ROT AF Drill 12 1/4" hole F/2007'to 2027'. Up wt. =88K Dn. wt. =75K Rt wt. =80K Tq. =4K ART= .2hrs. 15:00 16:30 1.50 CIRC MUD AF Circ. BIU. Pump 30bbls water followed with 45bbls high vis pill Displace hole to 8.7ppg flopro mud. 16:30 17:30 1.00 TEST LOT AF Perform fit test to 12.0ppg EMW(350psi, 8.7ppg mud, TMD shoe 2045). www.peloton.com Report Printed: 4/24/2009 w • �i,` Marathon Operations Summary Report M MI a OiI Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 17:30 19:30 2.00 TRIP DP AF PJSM; POOH w/5" DP., HWDP, Flex collars, lay down bit. 19:30 22:30 3.00 TRIP DP AF PJSM; Make up bit #3, Pick up MWD, orient MWD, RIH w/ Flex collars, HWDP, Test MWD, Cont RIH T/ 2127' 22:30 00:00 1.50 DRILL ROT AF PJSM; Drill 12 1/4" tangent hole section f/ 2127'- 2252', ART =.6, AST =O, Up wt. =88K, Dn. wt. =75K, Rt wt. =80K, Pump =400 GPM, 650 psi. 00:00 06:00 6.00 DRILL ROT AF Drill 12 1/4" tangent hole section (/2252'- 2700', ART =4.1 AST =O Up wt. =90K Dri wt. =85K RT wt. =87K RPM =60 Tq. =5K Bit wt. =8K Daily Operations Report Date: 1/25/2009 Job Category: DRILLING 24 Hr Summary 2700' to 4343' Circ. bottoms up for wiper trip. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" tangent hole section F/2700'to 3140' ART= 3.5hrs AST =.4HRS 450- 5000PM, 800- 1000psi, 60- 65RPM, 8 -12K WOB, 3 -4K TQ, P /U97K 3/0 90K Rot 95K. Pump engine#1 failed @ 11:00hrs 3060'. Pump with pumps#2 and #3 while repair pump#1 control drill 100ft /hr 450GPM. 12:00 18:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/3140'to 3470 ART= 3.8hrs AST =.3hrs AST =HRS 450- 5000PM, 800- 1000psi, 60- 65RPM, 8 -12K WOB, 4 -5K TQ, P/U 105K 3/0 95K Rot 100K. Pump with pump#2 and pump#3 while repair pump engine#1. Control drill 100ft /hr 450gpm. Staic losses 1- 1.5BPH. 18:00 00:00 6.00 DRILL ROT AF Drill 12 1/4" tangent hole section F/3470'to 3901' ART =4.7 AST =.2 400 -490 GPM, 1000 psi, Up wt. =115K Dn wt. =100K, RT.wt. =107K. Tq. =6K, 65 RPM. Control drilled 100ft /hr 450gpm to 3760' @ 22:00hrs pump engine#1 repair was finished. 00:00 05:00 5.00 DRILL ROT AF Drill 12 1/4" tangent F/3901' to 4343' ART =3.6 AST =.4 Up wt. =127K Dn. wt. =100K Rt.wt. =115K, tq. =6K500 GPM, 1100 psi,Bit wt.= 5 -15K, RPM =65. Static losses 3BPH. 05:00 06:00 1.00 CIRC MUD AF Circ. until shakers clean(CBUX2, 500GPM,1000psi,67rpm) Report Date: 1/26/2009 Job Category: DRILLING 24 Hr Summary Circ. shakers clean @ 4343'. Spot LCM pill in annulus and POOH to CSG shoe @ 2097'. Service rig and slip DRLG line. RIH to 4343'. Drill F/4343' to 5370'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 CIRC MUD AF Cont, to circ. shakers clean(CBUX2, 500gpm,1000psi). Dynamic losses 15- 20BPH. 07:00 07:30 0.50 SPOT PILL AF Spot 45BBLS LCM pill in annulus(2sx Flo Vis, 2 sx Poly pac, 10sx KCL, 20ppb SC10, 20ppb SC 40, 20ppb SC 250, 20ppb SC500, 5ppb G -seal, 2.5ppb Mix2 fine, 2.5ppb Mix2 med). Flow check static losses 3BPH. 07:30 10:00 2.50 TRIP DP AF PJSM. POOH to CSG shoe @ 2107'. Hole in good condition. Losses while POOH 2 -3BPH. 10:00 11:00 1.00 SERVIC RIG AF Service rig. 11:00 12:00 1.00 SLPCUT DLIN AF PJSM. Slip drilling line. Flow check static losses 2.5BPH. 12:00 14:00 2.00 TRIP DP AF PJSM. RIH w /5" DP to 4343'. Wash last stand down(no fill). Hole in good condition. 14:00 18:00 4.00 DRILL ROT AF Drill 12 1/4" tanget hole section F/4343'to 4620. ART= 2.8hrs AST= .3hrs, 475- 5000PM, 1100psi, 65rpm, 6 -7K TO, 10 -12 WOB, P/U 140K, 5/0 105K, Rot 120K 18:00 00:00 6.00 DRILL ROT AF Drill 12 1/4" tangent hole section F/4620' to 4996' ART =3.9 AST=.2 /426 GPM, 950 psi, 65 rpm, Up wt. =145K Dn. wt. =110K, Rt.wt=125K, Tq. =6 -7K, Static losses 3 BPH,SIow pump rate down to 420 gpm to slow down fluid losses. 00:00 06:00 6.00 DRILL ROT AF Drill 12 1/4" tangent hole section F/4996' to 5370'ART =4.0 AST =0 / 426 GPM, 1000 psi, 65 rpm, Up wt. =147K, Dn. wt. =115K, Rt wt. =127K, Bit wt. 10 -12K, Tq =7K Static losses 3 -5 bph, Mixing G -seal safecarb to control losses. Report Date: 1/27/2009 Job Category: DRILLING 24 Hr Summary Drill F/5370'- 6235', Building 50 bbl. LCM pills for lost circ., Circ 2X bottoms up, Wiper trip 06235'. www.peloton.com Report Printed: 4/24/2009 1 • M arathon Operations Summary Report :r.,,, IM °t Oil Co y Well Name: BEAVER CREEK 18 Ops Trouble I Start Time End Time Dur (hrs) , Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL POT AF PJSM. Drill 12 1/4" tangent hole section F/5370' to 5668'. P/U 160K S/0 115K Rot 137K 420- 450gpm, 1000- 1100psi, 65RPM, 8K Ft-lb, 10 -20K WOB ART= 3.2hrs AST= .Shrs. Control drill 10011 /hr due to reduced flowrate of 425GPM. Dymanic losses 10 -15BPH and static losses 3BPH. Attempted to increased flowrate to 450gpm and losses incresed to 15 -20 BPH. Building 5OBBL batches w/22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .Sppb Mix 2 med, .Sppb Mix 2 fine 5ppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour. 12:00 18:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/5668' to 5940'. P /U145K S/0 125K Rot 135K 420gpm, 1000psi, 65RPM, 10-11K Ft-lb T0, 10 -20K WOB ART =3hrs AST= .2hrs. Control drill 100ft/hr due to reduced flowrate of 420GPM. Dymanic losses 10 -15BPH and static losses 3BPH. Increased Low torque from 1% to 2 %. Before NU 160K, 3/0 115K Rot 137K Tq 10K After P/U 145K 5/0 125K Rot 135K Tq 10-11K. Building 5013BL batches w/22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .Sppb Mix 2 med, .5ppb Mix 2 fine Sppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40250,500, Mix 2 Med and fine per hour. 18:00 19:30 1.50 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/5940' to 6048'. P /U155K 5/0 140K Rot 135K 420gpm, 1000psi, 65RPM, 10 -11 K Ft-lb T0, 10 -20K WOB ART= 1.2hrs AST =Ohrs. Control drill 100ft/hr due to reduced flowrate of 420GPM. Dymanic losses 10 -15BPH and static losses 3BPH. Low torque 2.25 %. Building 5OBBL batches w22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .5ppb Mix 2 med, .Sppb Mix 2 fine Sppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour. 19:30 20:30 1.00 REPAIR RIG TA MSHS PJSM; Troubleshoot PLC problem, found loose wire and repaired. 20:30 00:00 3.50 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/6048'to 6205'. P /U155K 5/0 140K Rot 135K 420gpm, 1000psi, 65RPM, 10 -11 K Ft-lb TO, 10 -20K WOB ART= 1.8hrs AST = .6hrs. Control drill 10011/hr due to reduced flowrate of 420GPM. Dymanic losses 10 -15BPH and static losses 3BPH. Low torque 2.25 %. Building 5OBBL batches w/22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .Sppb Mix 2 med, .Sppb Mix 2 fine Sppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour. 00:00 '00:30 0.50 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F16205' 10 6235'. P /U155K S/0 140K Rot 135K 420gpm, 1000psi, 65RPM, 10 -11 K Ft -lb T0, 10 -20K WOB ART =.6hrs AST =Ohrs. Control drill 100ft /hr due to reduced flowrate of 420GPM. Dymanic losses 5 -10BPH and static losses 3BPH. Low torque 2.25 %. Building 5OBBL batches w/22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .Sppb Mix 2 med, .Sppb Mix 2 fine Sppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour. 00:30 03:00 2.50 CIRC MUD AF Circ. shakers clean(CBUX2, 430gpm,1200psi). Dynamic losses 5- 10BPH. Flow check 3bbls.hr. static losses. 03:00 03:30 0.50 TRIP WIPR AF PJSM; POOH F/6235' to 5600', Monitor well, fill trip tank, Pump 30 bbl dry job. Hole in good condition. 03:30 06:00 2.50 TRIP WIPR AF Cont. trip out of hole F/5600' to 3800. Daily Operations Report Date: 128/2009 Job Category: DRILLING 24 Hr Summary POOH to CSG shoe @ 2097'. Service rig. RIH to 6235'. Drill F/6235' to 6763' Ops Trouble l Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 TRIP DP AF Cont. POOH to CSG shoe @ 2097'. Hole in good condition. 07:30 08:30 1.00 SERVIC RIG AF PJSM. Service rig. 08:30 13:30 6.00 TRIP DP AF PJSM. RIH and wash last stand down. Tight spots @ 5880' and 6220' 5' fill on bottom. www. peloton.com Report Printed: 4/24/2009 • • Marathon Operations Summary Report MasArxow tail Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time [Air (hrs) Ops Code Activity Code Status Code Comment 13:30 18:00 4.50 DRILL ROT AF PJSM. Drill 12 1/4" tangent section F/6235'to 6375'. ART= 3.6hrs AST =Ohrs. P/U 170K, 8/0 130K, Rot 150K, 420- 450GPM, 1100- 1250psi, 10 -20K WOB, 65RPM, 7 -14K Ft-lb TQ. Building 5OBBL batches w122ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .5ppb Mix 2 med, .5ppb Mix 2 fine 5ppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour and a half. Dynamic losses 5- 10BPH. Static losses 3BPH. 18:00 00:00 6.00 DRILL ROT AF Drill 12 1/4" tangent section F/6375' to 6561'. ART= 1.5hrs AST= 1.3hrs. P/U 175K, 5/0 130K, Rot 150K, 420- 450GPM, 1100- 1250psi, 10 -20K WOB, 65RPM, 7 -14K Ft -lb TO. Building 5OBBL batches wt22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .5ppb Mix 2 med, .5ppb Mix 2 fine 5ppb G- seal. , increase Lotorc to 3% - 3 1/2% at 1145 hrs. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour and a half. Dynamic losses 5- 108PH. Static losses 5- 1013PH. 00:00 06:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" drop section F/6561' to 6753'. ART= 1.7hrs AST= 2.5hrs. P/U 175K, S/0 133K, Rot 152K, 475GPM, 1100- 1250psi, 10 -20K WOB, 7ORPM, 7-11K Ft -lb TQ. Building 5OBBL batches w/22ppb CaCo3 40, 15ppb CaCo3 250, 1Dppb Cac03 500, .5ppb Mix 2 med, .5ppb Mix 2 fine 5ppb G- seal., Lotorc 3% - 3 1/2% .Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per 2 hours. Increase flow rate to 475gpm @0100hrs. , fluid losses have not increased. Static losses 5- 10BPH. Dynamic losses 5- 10BPH. Daily Operations Report Date: 1/29/2009 Job Category: DRILLING 24 Hr Summary Drill F/6753' to 7376' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/ 6753'- 6949' P/U 180klbs 5/0 135klbs Rt. Wt. 156kIbs. Tq. 7.5 -13 ft -lb 475gpm 1200- 1350psi. 10- 23wob. 70rpm. Static losses to hole 0 Dynamic losses 2 -3bbls per hr. Increase pump rate to 525gpm no losses. Ast= 1.7hr Art = 1.8hr. Penetration rate sliding 16- 30fph. 65 -95fph rotating. 12:00 18:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/ 6949 " - 7117' P/U 195kIbs S/0 145kIbs Rt. Wt. 165kIbs. Tq. 7.5 -13 ft-lb Increase pump rate to 600gpm 1200- 1350psi. 10- 23wob. 70rpm. Static losses to hole 0 Dynamic losses 2 -3bbls per hr. Ast= 2.9hr Art = 1.7hr. Penetration rate sliding 16- 30fph. 65 -95fph rotating. 18:00 00:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/ 7117' - 7283' P/U 195kIbs 5/0 145kIbs Rt. Wt. 165kIbs. Tq. 8-1311-lb / pump rate 600gpm 1200- 1350psi. 10- 23wob. 70rpm. Static losses to hole 0 Dynamic losses 2 -3bbls per hr. Ast= 2hr Art = 1.7hr. Penetration rate sliding 16- 30fph. 65 -95fph rotating. Mud wt. 9.4+ 00:00 06:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/ 7283' - 7376' P/U 190kIbs 5/0 145kIbs Rt. Wt. 167kIbs. Tq. 8 -13 ft -Ib / pump rate 600gpm 1200- 1350psi. 10- 45wob. 70rpm. Static losses to hole 0 Dynamic losses 2 -3bbls per hr. Ast= 2.5hr Art = 2.1 hr. Penetration rate sliding 6- 56fph. 65 -95fph rotating. Mud wt. 9.4+ Report Date: 1/30/2009 Job Category: DRILLING 24 Hr Summary Drill f/ 7376' to 7623',Circulate B /Ufor sample, POOH f/ wiper trip f/ 7623'to 5921', Tight f/ 6860' to 5921'RIH, try to break circ. ,pipe plugged, POOH. At 3000,' 0600 hrs.Static loses 2 bph. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/ 7376'- 7496' P/U 197k1b 8/0 150kIb Rt. Wt. 175k1b Tq 9 -14kIb ft-lb 600gmp rotating 475gpm sliding. 10 -40kIb wob. 70rpm. Dynamic fluid loss 2 -3bbls per hr, Static losses 1 -2 bbl per hr Art= 1.6hr Ast = 3.9hr. Diffculty sliding due to formation 12:00 18:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/ 7496' - 7623' P/U 200kIb 8/0 145kIb Rt. Wt. 175k1b Tq 9 -14kIb ft-lb 600gmp rotating 475gpm sliding. 10 -40kIb wob. 70rpm. Dynamic fluid loss 2 -3bbls per hr,.Static losses.1 -2bbl per hr Art= 3.7hr Ast =1.1 hr. Diffculty sliding due to formation. 18:00 19:30 1.50 CIRC MUD AF Circulate 300spm 600gpm 2150psi at 7623' for B/U samples to confirm 9 5/8 casing point. Continue circulating until shakers clean up for Wiper trip.Shut down pumps and check static losses, 2 bph. www.peloton.com Report Printed: 4/2412009 • • 0"-- Marathon Operations Summary Report memos Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 19:30 23:00 3.50 TRIP WIPR AF PJSM; POOH f/ wiper trip f/7623' TO 5921' Tight spots f/6860' to 5992' work thru them without pump or rotating. 23:00 00:00 1.00 TRIP WIPR AF MDDS PJSM; RIH F15921'- 7623', Hole slick in good condition. No Gain/ Slight loss 1 bbl 00:00 00:30 0.50 CIRC MUD TA MDDS PJSM; Fill pipe, break circ, after 400 strokes pipe plugged. Attempt to unplug pipe, could not circ.,Monitor well, fill trip tank, blow down mud lines 00:30 06:00 5.50 TRIP DP TA MDDS PJSM; POOH wet f/ 7623' SLM out of hole, found cement in drill pipe at 5300'. Rattle pipe out of hole, cement found strung up and down drill pipe. 30W' at 0600 hrs. No Gain 2 bbl per hr. loss Daily Operations Report Date: 1/31/2009 Job Category: DRILLING 24 Hr Summary POOH f/ 3000', 1 bbl per hr. losses, inspect D/P for cmt., UD jars, UD BHA, Inspect conn. for galling and cmt. ,R/U Weatherford wireline, Run Quad combo lags, f/ 7616'- 2097',M/U BHA RIH rabbit pipe for cement. At 4100' Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 09:00 3.00 TRIP DP AF Continue POH f 3000' with drillpipe. No gain/ 1 bbl per hr loss. Inspect drillpipe for cement. all pipe from 3000' to BHA clear of cement. 09:00 10:00 1.00 TRIP BHA AF POH lay down 6 1/4 jars . Stand back HWDP inspect connections for cement or galling, all joints clear. 10:00 12:00 2.00 PULD BHA AF Inspect all Non mag tool joints for galling, none found. Lay down X overs,Monels and Stablizers, Check filter sub on top of MWD, found sub screen packed off and plugged with cement from drillpipe. Lay MWD down. Break out bit and lay down motor. 12:00 13:30 1.50 RURD ELEC AF PJSM : Rig up weatherford wire line service E- line tools. P/U quad combo logging tools. Load source. 13:30 22:00 8.50 LOG OH AF RIH with quad combo tools on E- line To 5907' work tools down to 5980. unable to pass, POH with quad combo logging assy. Lay down 2 arm caliper tool/ Rih with logging tools asnd tag bottom at 7623' no fill. Log from 7623' to2097'.POH with logging tools. Note: hole taking 1 bbl per hr 22:00 23:00 1.00 RURD ELEC AF PJSM; Rig down Weatherford wireline. 23:00 00:00 1.00 PULD BHA AF PJSM; Measure and make up Clean out assy. X.O, Bit sub and 12 1/4" Baker Hughes M1 -XL Mill tooth bit 00:00 06:00 6.00 TRIP DP AF RIH with HWDP, 5" Drill pipe.Rabbit pipe with 2.75 drift running in hole rattling drillpipe and checking for cement. Report Date: 2/1/2009 Job Category: DRILLING 24 Hi Summary RIH, Rabbiting drill pipe, UD plugged D /P, Wash f/56797623', Pump LCM pill, dry job, Could not break saver sub conn. UD single w/ sub, POOH, P/U single break saver sub, Pull wear ring, UD single, P/U 9 5/8 csg hanger make dummy run, Change dies on top drive grabber, Serv. Rig. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP DP AF Continue RIH rabbiting / checking drillpipe for cement.. to 5610'. Lay down 4joints of drillpipe ( plugged with cement) 08:00 15:00 7.00 TRIP DP AF Circulate B/U at 5679' Clear drillpipe of any cement. pump at 450gpm1250psi. Continue to RlHand rabbbit drillpipe from mast for cement., Wash and ream f- 5860'- 5980' clean up tight hole. Precautionary wash f- 5980' to 7556' . Clean up tight hole at 7556' to 7560' Wash to bottom at 7623' tag 1' of fill Hold safety meeting with oncoming crew, discuss non routine operation ( running rabbit while RIH.) Review plan forward for tour. No gain / 1 -2 bbl per hr loss to hole. — 15:00 18'30 3.50 CIRC MUD AF Circulate and pump Hi vis weighted sweep at 7623' Pump 300spm 600gpm 1150psi. Rotate at 85 rpm while reciprocating pipe . P/U 190klb S/0 140kIb Rt 160klb Tq 9500 -10000 ft -lbs. Sweep returned with 2X increase in cuttings/ sand over shakers. Continue circulating until shakers clean up. Place LCM pill at 4500'. Note: Called BLM ( Tim Lawlor) gave notice of running and cementing 9 51'8 casing 1500hrs 1/31/09 18:30 19:00 0.50 TRIP DP AF Monitor well, Pump dry job, Blow down mud lines POH f 7623' 19:00 19:30 0.50 TRIP DP TA MSHS PJSM; Could not break saver sub off from Drill pipe, connection over torqued, Lay down single with saver sub still connected. 19:30 03:30 8.00 TRIP DP AF POOH f/7623'to 5911'tight spot, also at 5848', cont. to POOH to surface lay down BHA. 03:30 05:00 1.50 RUNPUL WBSH AF PJSM; Pick up single off catwalk. Break off saver sub. Make up test joint . retrieve wear bushing. Remove wear bushing and lay down single. www.peloton.com Report Printed: 4/2412009 • • Marathon Operations Summary Report /AA F'TN oH Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Our(hrs) Ops Code Activity Code Status Code Comment 05:00 05:30 0.50 CLEAN RIG AF PJSM; Pick up 9 5/8 casing hanger and make dummy run. 05:30 06:30 1.00 SERVIC RIG AF PJSM; Service rig and change dies on top drive grabber. Daily Operations Report Date: 212/2009 Job Category: DRILLING 24 Hr Summary 0/0 5" pipe rams to 9 5/8, test t0 250/3000psi f /10 min.,Repair grabber, c/o bails, elevators, P/U spyder, PJSM w/ Weatherford, P/U and M/U shoe track, RIH w/ 9 5/8- 40 #L -80 BTC csg., P/U 166Jts.= 6637.34' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TEST CSG AF 0/0 5" pipe rams to 9 5/8 casing rams. Set test plug.P /U 9 5/8 test joint and test casing rams to 250/3000 10 min. Test passed. Lay test jt down, pull test plug. 08:30 09:30 1.00 REPAIR RIG TA MSTD Repair grabber dies on top drive pipe handler. 09:30 15.00 5.50 RURD CSG AF PJSM: Rig up to run 9 518 casing. move torque tube back, Install fill up tool. 0/0 bails, elevator spider and casing tongs. R/U stabbing board and function test. 15:00 15.30 0.50 SAFETY MTG AF PJSM: hold PJSM and review JSA for running 9 5/8 casing rig crew. and weatherford casing crew. 15:30 '06'00 14.50 RUN CSG AF Pick up and make up shoe track, baker loc all connections, Install tea centrailerrs on each joint of shoe track. Fill pipe and check floats. Run in hole with 9 5/8 4Oppf L -80 BTC casing filling each joint on the fly.installing centrailzers as per program Run a total of 190joints with 46ea centrailzers and 8 stop rings.Stop and circ. at shoe, 2074', Break circ. at 3213',pump 70 bbls.total, P/U 166 jts.= 6637.34' RIH at reduced rate to minimize fluid Ioss.Calc. displacement plus or minus 3 bbls., Up wt. =257K, Dn. wt =155K. Report Date: 2/3/2009 Job Category: DRILLING 24 Hr Summary RIH w/ 9 5/8 csg. to 7612', Circ. cond. mud, Batch mix cmt., R/U cmt .lines test to 3000 psi.Cement Csg. Cmt in place at 1530 hrs.R /D cmt., Install pack off, R/D cmt.equip., R/U floor, cut drilling line, Change out bails and rams, test BOPE Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 RUN CSG AF Continue running 9 5/8 Casing . Make up landing joint and wash from 7590' to 7612' Land 9 5/8 casing out in multi bowl wellhead. Circ at 106spm 207gpm 630psi. On issues running casing to bottom. Caculated displacement of 9 5/8 casing 107bbis actual displacement 76bbls. Hole still taking 1 bbl per hr. Note : Float collar set at 7529.9' Shoe set at 7612.4' 08:30 1030 2.00 CIRC MUD .AF Circulate and condition mud for Casing cement job 106spm 470psi 207gpm. Rig down casing tools while circulating. 10:30 12:00 1.50 RURD CMT AF PJSM : Blow down mud lines. R/U BJ cement/ Plug dropping head. Hold PJSM with cementers and crews, review scope of cement job, highlighting cold weather operations and hazards involved in the cementing process. 12:00 15:30 3.50 PUMP CMT AF Batch mix. 100bbIs 10.5ppg Cement. Test Cement lines to 3000psi. Drop bottom plug Mix and pump 20bbls of 10ppg seal bond sweep Followed by 171 bbls 10.5ppg 290sacks Class G cement + 15% BA -90,+ 1% CD -32,+ .5 SMS,+ 1.2% FL- 63, +47% LW -6,+ .5 %R -3 static free, + 1 gps FP -6L. with a yield of 3.324 cu /ft/sk 12.669ga1/sk. Followed by 216sacks class G, + 1.2% BA -56, .4% CD -32, +2% SMS, +.2% R -3, +3 % KCL, +.05 static free, igps FP 6L. 15.8 ppg, yield 1.176 cuft /sk. 4.944 gal /sk Drop top plug with 5bbl H2o Switch to rig pumps and displace with 565.69bb19.4 flo -pro mud. Displace at 4.8bb1 per min and 700psi, Bump plug and pressure up to1430psi, hold for 5min,bleed off pressure, floats held. Cement in place at 1530hrs, 100 % returns 15:30 16:30 1.00 RURD CMT AF Blow down cement and mud lines. R/D cement head and lines. 16:30 18:00 1.50 TEST WLHD AF PJSM; Install packoff on 13 5/8 X 9 5/8 Mandrel hanger, top conn. 10.375 -5 Stub Acme box. Test to 5000 psi for 10 min. 18:00 19:00 1.00 NUND BOPE AF PJSM; Lay down landing joint, Change 9 5/8 csg. rams to 2 7/8 X 5 1/2 variable rams. 19:00 00:00 5.00 RURD 080 AF PJSM; Rig up rig floor, adjust turnbuckles on torque tube for top drive. Rig down stabbing board. 00:00 02:00 2.00 RURD RIG AF PJSM; Change out long bails to short bails, rig up drill pipe elevators. 02:00 03:00 1.00 SLPCUT DLIN .AF PJSM; Slip and cut drilling line 100'. Adjust crown -o -matic www.peloton.com Report Printed: 4/24/2009 • • Marathon Operations Summary Report I MAM= „Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment - 4 3.00 TEST BOPE AF PJSM; Rig up test ROPE, Shell test BOP , choke line froze, thaw out. Door leaking on BOPE, change out door seal. Daily Operations Report Date: 2/4/2009 Job Category: DRILLING 24 Hr Summary Test BOP, Install wear bushing. Test csg. to 1700 psi f130 min., Thaw out kelly hose an top drive. Make up BHA, P/U 54 jts. 5" drill pipe. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 15:00 9.00 TEST BOPE AF Test 2 7/8" X 5 112" variable rams, blind rams, annular, choke line HCR, choke line manual valve, kill line inner and outer manual valves, Kill line check valves, top drive upper and lower valves, safety valve, IBOP valve to 250/3000psi . Tested all gas alarms and PVT system. Performed koomey performance test. Test witnessed by Jeff Jones. AOGCC , Tim Lawlor, BLM called @1730 2 -1 -2009. NOTES: Tested to BLM spec. 10 minute sets, H2S sensor on rig floor failed audible and light, replaced and retested, OK. CMV valves 7 & 12 failed greased and retested OK. Rig floor safety valve failed, replaced & retested, OK. Flow line indicator light, audible failed, frozen, thawed out, OK. Choke line , Kill line and top drive frozen , thaw out 15:00 15 30 0.50 RUNPUL WBSH AF Set wear bushing (ID 9 ") Rig down test joint 15:30 16:30 1.00 TEST CSG AF Test casing to 1700psi 30min. Inital pressure 1700 final pressure 1700. Rig down/ blow down mud lines. 16:30 18:00 1.50 REPAIR RIG TA MSOT Thaw out Frozen mud lines, rotary hose. 18:00 22.00 4.00 PULD BHA AF PJSM; Make up 8 112 bit and BHA, for 8 1/2 hole section. Steam connections before making up. RIH with HWDP. Test MWD. Blown down mud lines. 22:00 03:00 5.00 PULD DP AF PJSM; Pick up and rabbit 54 jts. 5" drill pipe,Steam connections before making up. To 2569' 03:00 06:00 3.00 TRIP DP AF PJSM; Trip in hole from derrick to 4025' fill pipe, RIH. At 0600hrs Circulating/ Fill pipe at 7480' Report Date: 2/52009 Job Category: DRILLING 24 Hr Summary Con RIH to 7480'. Wash down f/ 7480'- 7529'. Drill out shoe track f/ 75297612'. Drill 20' new hole. Circ & condition hole. Perform F.I.T.w/ 9.45 ppg MW, 980 psi @ 7068' TVD = 12.1 ppg EMW. Drill 8 -1/2" hole f/ 7643'- 8800'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 0¢:00 06:30 0.50 TRIP DP AF Continue rih circulate f- 74807529', Tag top of float collar 06:30 08:30 2.00 DRILL CMT AF Drill out float collar and shoe track f- 7529'- 7612', Clean out old hole f7612'to 7623', Drill new hole f- 7623' to 7643'20' for fit test. P/U 185kIbs 5/0 137kIbs Rt. Wt.165kIb TO 8 -9.5 ft-Ibs. ART 0.3 hrs, AST 0 hrs 08:30 09:30 1.00 CIRC MUD AF Circulate B/U and condition mud for FIT test 395gpm 1150psi 09:30 10 00 0.50 TEST LOT AF Perform FIT 9.45MW 980psi at 7068TVD = 12.1 EMW 10:00 18:00 8.00 DRILL ROT AF PJSM: Drill 8-1/2 vertical hole section f/ 7643'- 8135' @ 508 gpm, 1900 psi, wob 5 -15 klb, 70 rpm, tq 9 -11 kft-Ibs, p/u 205 klb, s/o 145 klb, rot wt 173 klb, ART: 5.5 hrs, AST: 0 hrs. 18:00 00:00 6.00 DRILL ROT AF Drill 8 -1/2 vertical hole f/ 8135'-8530'@ 500 gpm, 2100 psi, wob 5 -10 klb, 70 rpm, tq 10 -14 kft-Ibs, p/u 210 klb, s/o 150 klb, rot wt 175 klb, max gas 65 units, avg bkgnd gas 10 units, ART: 3.6 hrs, AST: 0 hrs. 00:00 04:00 4.00 DRILL ROT AF PTSM: Drill 8 -1 vertical hole f/ 8530'-8764'@ 510 gpm, 2100 psi, wob 5 -15 klb, 70 rpm, tq 12 -14 kft -Ibs, p/u 215 klb, s/o 155 klb, rot wt 183 klb, max gas 65 units, avg bkgnd gas 10 units, ART: 2.9 hrs, AST: 0 hrs. 04:00 05:30 1.50 REPAIR RIG TA MSPW Replace driveline on carrier #2 dennison & add coolant to #2 engine. 05:30 06:00 0.50 DRILL ROT AF Drill 8 -1/2 vertical hole f/ 8764'-8800'@ 510 gpm, 2100 psi, wob 5 -15 klb, 70 rpm, tq 12 -14 kft -Ibs, p/u 215 klb, s/o 155 klb, rot wt 183 klb, max gas 2 units, ART: 0.3 hrs, AST: 0 hrs. Report Date: 2/62009 Job Category: DRILLING 24 Hr Summary Drill 8 -1/2" hole to T.D. @ 9244'. CBU. Make wiper trip f/ 9244' to 8198'. Backream f/ 81987630'. Pull into 9-5/8" csg @ 7612'. Service rig. RIH f/ 7612'- 9184'. Wash down f/ 9184'- 9244'. Circulate w/ repair pump #1. Pump hi -vis sweep & circ until hole clean. Monitor well. Pull 5 stds. Pump dry job & drop 2 -3/8" rabbit. POOH w/ SLM f/ 8956'4200'. Ops Trouble / Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 1.1 7.50 DRILL ROT AF Drill 8 1/2 vertical hole section f 8800'-9244'@ 510gpm 2100psi 70rpm, tq 11 -13 kft -Ibs p /u220klbs /o 155k1b rot wt.` 188k1b Max gas 42units ART= 5.8hr AST =0 No gain /Loss. www.peloton.com Report Printed: 4/24/2009 1 • . ` Marathon Operations Summary Report NAFATN3k . Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 13:30 14:30 1.00 CIRC MUD AF Circulate B/U to confirm TD at 9244' 255stks 1850psi 510gpm, No Gain/ Loss 14:30 19:30 5.00 TRIP 'WIPP AF Monitor Well POH f -9244' ( wiper trip) 92447612'9 5/8 casing shoe. Work various tight clays. Back ream and wash f 6198' -7630' Pull into shoe at 7612'. 19:30 20:00 0.50 SERVIC RIG AF PJSM: Service rig. Grease top drive, blocks and carrier. 20:00 21:00 1.00 REPAIR PIG TA MSOT Replace 4" valve on #2 mud pump. Plug hydraulic lines to stabbing board. ( Leaking ). Repair leak on carrier power steering pump #2. 21:00 22:30 1.50 TRIP WIPP AF PJSM: RIH f/ 7612'- 9184'. Wash last std to bottom f/ 9184'- 9244'. No ledges. No fill. 22:30 00:30 2.00 CIRC MUD TA MSFL PJSM: Circ with mud pump #3 @ 210 gpm & 75 rpm while change out 2 swabs on pump #1. Dennison pump went out on pump #2. 00:30 02:00 1.50 CIRC MUD AF Pump hi -vis sweep & circ until hole clean w/ 420 gpm & 75 rpm. Monitor well (static). Trip gas 121 units. No visible increase in cuttings over shakers. 02:00 06:00 4.00 TRIP DP AF POOH 5 stds f/ 9244'- 8956'. Pump dry job. Drop 2 -3/8" rabbit. Con't POOH 0 8956' -4200' w /SLM. Daily Operations Report Date: 2/7/2009 Job Category: DRILLING 24 Hr Summary POOH & UD BHA. R/U & ruri quad -combo e-logs on wireline. R/U & RIH to 7612' w/ RFT logging tool on wireline. Wait on pick pts from geology. RIH & run RFT's on wireline. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP DP AF Continue Poh SLM f-4200' to BHA. No gain /Loss. No correction to SLM. 08:00 10:30 2.50 TRIP BHA AF PJSM: Stand back HWDP and jars. UD monels,pony collar, stablizer, and MWD. Break out bit and L/D motor. No sign of gauling on all connections. Filter sub plugged with cement. Three jets on bit plugged . 10:30 11:00 0.50 CLEAN RIG AF Clean /clear rig floor 11:00 12:30 1.50 KURD ELEC AF PJSM : Rig up weatherford wire line tools. Load source 12:30 17:30 5.00 LOG OH AF Run in hole with Quad -combo logging tools on e- line. Run tools to 9213' and log into 9 5/8 casing at 7612' Make secound pass. POH with quad combo tools. Unload source and lay down tools 17:30 22:00 4.50 LOG OH AF P/U weatherford RFT tools and run in hole on e-line park at 7600' Wait on pick points. 22:00 06:00 8.00 LOG OH AF RIH f/ 7600' to 9003' w/ RFT tool on wireline. Took total of 34 formation test. Will attempt to take 22 additional. Current depth = 8464' @ 06:00 hrs. Report Date: 2/7/2009 Job Category: DRILLING 24 Hr Summary Run RFT logs 1/8464'-7710. POOH & UD wireline tools. Move to completion phase phase @ 14:30 hrs on 2/7/2009. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 14 :30 8.50 LOG OH AF Continue taking MFT pressures from 8464'to 7710'. Overall tested 68points with 73 pressure tests. POH with mft tools and lay down. Rig down weatherford wire line service. Move to completion phase at 1430hrs 2 -7 -2009 Report Date: 2/8/2009 Job Category: DRILLING 24 Hr Summary Run RFT logs f/ 8464'- 7710'. POOH & UD wireline tools. RIH w/ 8 -1/2" cleanout assy. CBU & con't circ until hole clean. POOH while laying down 5" drill pipe. Move to completion phase @ 14:30 hrs on 2/7/2009. Tim Lawlor- BLM notified for running & cementing 3 -1/2" casing @ 08:30 hrs. on 217/2009. cementing Ops Trouble L- Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 14:30 21:00 6.50 TRIP DP AF PJSM: Make up 8 1/2 clean out assy. 8 1/2 bit ,bit sub with float HWDP and jars. RIH to 9132'. Hit ledge @ 9132'. Fill pipe @ 4714' & 7612'. No gains or losses. 21:00 21:30 0.50 REAM OH AF Wash & ream down f/ 9132'- 9244'. Work through ledge @ 9132' (ok). No fill on bottom. 21:30 23:00 1.50 CIRC MUD AF CBU & con't circ until shakers clean @ 400 gpm & 75 rpm. Trip gas = 69 units. Monitor well (static). Pump dry job. Blow down mud (lines. 23:00 06:00 7.00 PULD DP AF POOH while laying down 5" drill pipe. at 3190' 0600hrs. Report Date: 2/9/2009 Job Category: DRILLING 24 Hr Summary LID 5" drill pipe. Pull wear ring. P/U 3 -1/2" test jt & test variable rams to 250/1700 psi f/ 5 min. R/U & run 3 -1/2 ", 9.3 #, L -80, EUE Mod casing. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 TRIP DP AF Continue POH lay down drillpipe f -3100' total joints UD 281jts of drillpipe,and 21jts of HWDP and jars. No gain/ Loss www.peloton.com Report Printed: 4/24/2009 • • ■ Marathon Operations Summary Report M , Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Our Ors) Ops Code Activity Code Status Code Comment 09:30 10:00 0.50 RUNPUL WBSH AF PJSM : Review JSA.R /U wear bushing tool pull wear bushing. 10:00 12:00 2.00 TEST CSG AF PJSM: M/U 3 1/2 test joint set test plug. test 3 1/2 casing 250/1700 5min. 12:00 13:30 1.50 RURD RIG AF Rig down floor, tongs, spinners and 5" drillpipe handling tools. 13:30 15:30 2.00 RURD CSG AF Change out bails, rig up casing tongs and elevators. Set Expro control line spools and rig up. Set expro boom truck. 15:30 16:00 0.50 SAFETY MTG AF Hold safety meeting, discuss the process of running the excape system on 3 112 casing. 16:00 06:00 14.00 RUN CSG AF Make up 3 -112" casing shoe track & check floats (ok). RIH w/ 3 -1/2 ", 9.3 #, L -80, EUE Mod casing w/ 6 Excape modules, 1 chemical injection assy, 2 control lines & 1 sacrificial line. Ran 210 jts of 284 total jts. Current depth: 6898' @ 06:00 hrs. Daily Operations Report Date: 2/10/2009 Job Category: DRILLING 24 Hr Summary Run 3 -1/2" csg to 9222'. R/U & circulate. Run correlation log. Space out csg string 7' down. R/U & cement 3 -1/2" csg string in place @ 9229.9'. Attempt to bleed pressure off3 -1/2" csg & check floats (negative). Re attempt to bleed pressure off csg (negative). WOC while: Flush & blow down surface mud lines. Begin emptying mud pits. Hot bolt stack & prepare to N /D. Change water pump &thermostat on #2 carrier engine. Bleed pressure off 3 -112" csg. R/U to run CBL lag. Ops Trouble Start Tirne End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:30 4.50 RUN CSG AF Continue running 3 1/2 casing to 7600' Stop and circulate casing volume 80spm 455psi 215gpm. At 9 5/8 Shoe. p/u 83KLB s/o 71 klb. Blown down lines. Run 3 1/2 casing f 7600 to 9222' No gain / loss . 10:30 12:00 1.50 CIRC MUD AF R/U circulating head „Circulate B/U spot conquor303 corrision inhibtor at 6000stks to place in 9 5/8 X 3 1/2 annulus from 7062 to surface. Pump 105spm 550 psi 5 bbls per min. Note Placed 900 bands on control lines 12:00 16:30 4.50 LOG OTHR A F PJSM rig up and run Expro wire line service to run gamma /ray correlation log for position of module assemblies. 16:30 17'00 0.50 RUN CSG AF Space out tubing string. Move 3 -112" csg & Excape modules down 7" as per correlation log. Float shoe set @ at 9229.9'. Float collar set @ 9193.0' 17:00 19:30 2.50 PUMP CMT AF PJSM w/ BJ services: Switch to BJ unit, pump 5 bbls water &test cmt lines to 3000 psi (ok). Pump 40 bbl spacer. Mix & pump 736.5 sacks Class "G" cmt w/ 1.2% BA -56, 0.5% EC -1, 0.4% CD -32, 0.2% SMS, 0.3% R -3, 3% KCL, 0.05% Static Free, 1 gal /100 sks FP -6L, 15.8 ppg, 1.176 cu.ft. /sk yield (154.2 bbls total cmt slurry), 4.939 gal water /sk (86.6 bbls total mix water), 3:28 hrs thickening time. Drop wiper plug & pump out w/ 5 bbls water. Displace cement w/ 74.9 bbls 3% KCL water. Plug did not bump @ calculated 80 bbl displacement. Decision made to pump 112 bbl increments to clear cement across lower module inside pipe @ 8815' until over displaced by 3 total bbls. Plug still did not bump (total displacement 83 bbls). Attempt to bleed off & check floats (floats did not hold). Bled back 1 bbl fluid, closed bleeder & csg string pressure up to 1200 psi. Make another attempt to bleed off (negative).Pump back 1 bbl & shut in at cement head. Continue holding 1200 psi on csg string. Had 100% returns during entire job. C.I.P. @ 19:10 hrs on 2 -9 -2009. Float shoe set @ 9229.9', top of float collar set @ 9193.0'. Note: Initial displacement pressure 81- 90psi, displacement fluid caught up with plug after 43bbls were pumped. pressure increased from 81 psi to 334psi as displacement caught up with plug. 19:30 00:00 4.50 WAITON CMT AF Flush surface lines & stack. Blow down & flush mud pumps #1 & 2, mix pumps, choke manifold, overhead lines & desilter. Clean up sub base, unchain stack, remove drip pan & rinse trip tank. 00:00 05:30 5.50 WAITON CMT AF PJSM: R/D bleeder, fillup & trip tank lines, actuator, choke & kill lines. Remove bolts on top & bottom spacer spool. Haul off mud. Change out water pump & thermostat on #2 carrier engine. 05:30 06:00 0.50 LOG CSG TA CPQC Bleed off pressure from 3 -1/2" csg string. R/U & run CBL to verify top of cmt inside 3 -1/2" csg. Report Date: 2/11/2009 Job Category: DRILLING 24 Hr Summary RIH w/ CBL & tag up @ 8710'. Log cmt bond f/ 8710'- 6860'. Lift BOP stack. Pull control lines. Set 85k1b on 3 -1/2" csg slips. Make rough cut on csg. Move out BOP stack. Make final cut on csg. Install & test 3 -112" pack -off. Install production tree & test (ok). Multiple attempts to test 3 -1/2" csg (negative). Set BPV. Moving mud & cleaning pits. Begin rig down GD -1 for rig move. www.peloton.com Report Printed: 4/24/2009 • • • Marathon Operations Summary Report MAFATROA Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 11:00 5.00 LOG CSG TA CPPL Continue running cement bond log tag top of plug 8710'.WLM. Run cement band log from 8710' up to 6860 Top of cement. POH rig down Expro wls. Note good cement bond 8710'up to 6860'. Clean pits and haul off mud for storage at G &I Total of 750 bbls 9.5 flo- pro placed in storage 11:00 13:30 2.50 NUND ROPE AF Nipple Down BOP,Lift stack Pull control Ilnes.P /U 100k1b Install 3 1/2 casing slips Slack off blocks and set 3 1/2 Casing with 85kIb on slips. Make ruff cut on 3 1/2 casing. 13:30 16:00 2.50 NUND BORE AF Move BOP stack out of cellar. Make final cut on 3 -1/2" csg & dress. Install 3 -1/2" pack -off & test to 5000 psi f/ 10 min (ok). 16:00 19:30 3.50 NUND TREE AF Install production tree. Set TWC. Test void to 5000 psi f/ 10 min (ok). Test tree to 10,000 psi f110 min (ok). 19:30 21:30 2.00 TEST CSG AF PJSM: Pull TWC & R/U to test 3 -1/2" csg. Attempt to test csg to 2100 psi (negative) w/ rig test pump. Pressured up to 2100 psi & steadily dropped 100 psi /min after shutting in. Reattempt test w/ same results (negative). Check for leaks in system (negative). Made additional attempts (all negative). Set BPV. Freeze protect tree. 21:30 00:00 2.50 RURD RIG AF PJSM: R/D bails & elevators. Pickle mud pumps 1, 2 &3. R/D & move # mud pump house. R/D & move out centrifuge van. Load up MWD cabin. Move backup generator & cuttings tank. R/D shock hoses. 00:00 06:00 6.00 RURD RIG AF PJSM: R/D bleeder, fillup, kill & choke hoses, mud manifold, top drive, turn buckles & torque tube Finish hauling mud from pits. Pump out poor boy gas buster & sumps in pump room. Freeze protect drawworks. Daily Operations Report Date: 2/12/2009 Job Category: DRILLING 24 Hr Summary R/D rig. Move pump#3, hansen tank and miscellaneous trailer loads. Rig released to KBU 11 -17X @ 06:00 hrs on 2 -12 -2009. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF PJSM. RID derrick board. R/D dresser sleeves between pits and pump room. Crane down back wind walls. RID gas buster u -tube. LID Beaver slide and BOP connex stairs. Remove hydraulic cylinder socks. RID choke line to poor boy degasser. RID mud lines and cement line. Blow down steam and water lines. Load out hansen tank and move out. Load miscellaneous equipment or trailers. PJSM. Crane down back wind walls and landings. Prep derrick to scope down. Crane down panic line. Lower gas buster and remove vent line. R/D service lines. Remove tarps on carrier. 12:00 00:00 12.00 RURD RIG AF PJSM w/ ASRC crane operator: Roll back & tie carrier tarp. Finish removing bows. Remove barrier & cylinder tarps. Unplug choke house & dog house. RID driller's console. Suck off fuel. Finish prep & scope down derrick. Empty water tank. RIO directional & mud engineer trailer. Prep to IJD derrick. Unplug carrier lines. Crane out back floor plate. Load out BOP connex. RID service lines. Load out catwalk. Crane off choke house, ODS stairs & platform, flow line, grey iron, dog house, DS stairs & derrick house. Remove exterior lights, chain derrick, unplug pump cooling towers, R/D fuel tank. Load out fuel tank & centrifuge modules. 00:00 06:00 6.00 RURD RIG AF PJSM: Rig down brake linkage. Fold up wind walls. Remove turnbuckles on carrier & prep to move. Pull wires from generator to pump room L/D hand rails on pits, pump room & generator house. Move carrier off mud boat. Split pits & pump room. Rig released to KBU 11 -17X @ 06:00 hrs an 2 -12 -2009. Report Date: 3/11/2009 Job Category: COMPLETION 24 Hr Summary Rig up Pollard Slickline unit to drive cement wiper plug to bottom . Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrive at Beaver Creek field office. Sign in, Review JSA, assign jobs hold PJSM. Topics discussed - active gas production pad, red lights - fire, blue lights - gas emission, sirens, muster points, Review job to be performed, slips, trips, falls. Buddy system, three second rule, Right to stop job,etc. 08:00 09:00 1.00 RURD OTHR AF Rig up Vetco Gray to remove back pressure valve in tree. Rigged up lubricator to remove back pressure valve due to cement collor floats not holding. Remove back pressure valve, rig down Vetco Gray 09:00 09:45 0.75 RURD SLIK AF Rig Up Pollard Wireline, Lubricator and crane truck www.peloton.com Report Printed: 4/24/2009 • • Marathon Operations Summary Report Oil Company Well Name: BEAVER CREEK 18 4 i1Ai uTN:iN __ Ops Trouble L_ Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 09:45 10:15 0.50 TEST EOIP AF Pressure test lubricator and wellhead equipment - test good 10:15 13:00 2.75 RUNPUL SLIK AF RIH with 1.70" OD Blind box on .265 wire to 8721' MD. Top of wirper plug. Knock plug free, chase to 9020' MD. Beat down to 9039' MD. Continue to try to push down hole unsuccessful. POOH wait on KCL water to pump 13:00 13:45 0.75 PUMP V'JTR AF Pressure up casing to 1000 #. Pressure after approx. 1 minute 700 #. Wiper plug does not appear to be moving. No pump rate. volume of 3.5" casing is 115 f1 / barrel. 13:45 14:30 0.75 RUNPUL SLIK AF RIH with same bottom hole assembly. Top of wiper plug at 9042' MD. POOH 14:30 15:00 0.50 PULD BOP AF Rig down Pollard wireline slickline unit, lubricator and crane truck 15:00 15:30 0.50 SECURE WELL AF Move unit to next well, secure wellhead, sign out and turn in work permit. Leave location Daily Operations Report Date: 3/30/2009 Job Category: COMPLETION 24 Hr Summary Rigged up Expro wireline to run 2.75" OD CIBP rated to 10,000 psi , dump 10 feet of cement on top of plug and pressure test casing. CIBP set at 8982' MD, top of cement at 8972' MD. Unable to get a good pressure test of casing and bridge plug. Fluid in hole was highly gas cut with approx. 300# gas pressure on wellhead when work started. Pressure test equipment on wireline truck is low volume to test lubricator but attempted to test casing. Pressure well up to 700# after plug was set and pressure remained stable for approx. 15 minutes. POOH with setting tool, dumped cement on top of plug. Will re -test well on 4 -2 -09 when we do BJ COIL BOP test on BC -19. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 MOB RIG AF Arrive on location, sign in and obtain work permit 08:30 09:15 0.75 SAFETY MTG AF PJSM - review JSA's . assign jobs and responsibilities, active gas production pad, red lights for fires, blue lights for gas emission, sirens, muster area at entrance road, emergency procedures, operators number is 283 -1316 or 911, emergency vehicles, slips, trips and falls, trenche subsidence due to melting, slippery containment etc. 09:15 10:15 1.00 RURD ELEC AF Rig up wireline truck, crane, BOP and lubricator 10:15 11130 0.25 SAFETY MTG AF Hold explosive safety meeting. Assign jobs, placement of signs to turn off transmitters and cell phones. Held meeting simultaneously with ASRC, BJ, BIG G electrical and Marathon to cover simultaneous operations. Cleared area of non - essential personnel. 10:30 11:00 0.50 TEST WLHD AF Pressure test wellhead and lubricator to 1000 #, test good. 11:00 13:30 2.50 RUNPUL ELEC AF Run in hole with 2.75" OD CIBP rated to 10,000 psi . Run correlation pass to tie collar locator into Dual Radial Cement Bond / GR / CCL logged by Expro dated 10 Feb, 2008. Set plug at 8988 feet MD. Pull off plug and set toolstring back down on top of plug to verify setting. Attempt to pressure test up to 700# on wellhead, monitor pressure for 15 minutes. No drop in pressure. POOH 13:30 15:30 2.00 RUNPUL 'ELEC .AF Run in hole with 30 feet of 2" cement dump bailer. Dump 10 feet of class G cement on top of CIBP. POOH 15:30 16:00 0.50 RURD ELEC AF 'Rig down Expro wireline unit, crane, BOP and lubricator. 16:00 16:30 0.50 SECURE WELL AF secure wellhead, turn in work permit and sign out Report Date: 4/62009 Job Category: COMPLETION 24 Hr Summary Rig down wireline, rig up frac crew Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 08:30 09:30 1.00 SAFETY MTG AF arrive location, obtain work permit. PJSM - review JSA - assign jobs, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster point, emergency procedures, emergency vehicles, emergency phone - 283 -1316, let ring 4 times, no answer call 911, simultaneous operations 09:30 11:00 1.50 RURD ELEC AF Rig up Expro wireline truck, crane, lubricator. 11:00 11:30 0.50 TEST BOPE AF Pressure test lubricator and BOP to 600 # - successful 11:30 15:00 3.50 RUNPUL ELEC AF Run temperature log to TD. Temperature anomaly at top of Module 4 at approx 8430' MD on down pass with static pressure. Bleed off pressure in casing, pull temperature string back to surface. Anomoly repeats across 8430' interval. 15:00 15.30 0.50 RURD ELEC AF Rig down Expro wireline unit, crane truck, Iubricator.Prepare to pressure test casing, monitoring annular pressure. 15 :30 16:30 1.00 RURD OTHR AF Rig up Pollard wireline equipment and pressure test 3 1/2" casing to 5000# while monitoring 3 1/2" X9 518" annulus. No pressure increase in annulus. Test successful. www.peloton.com Report Printed: 4/24/2009 • • Marathon ( --Th Operations Summary Report AF Apra Oil Company Well Name: BEAVER CREEK 18 Ops Trouble I Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 16:30 17:00 0.50 SECURE WELL AF secure wellhead for evening, turn in work permit, leave location Daily Operations Report Date: 4/7/2009 Job Category: COMPLETION 24 Hr Summary RD coil tubing unit, flowback iron, frac iron, and well test iron. RU on BC 18. Test BOP and flowback equipment - Good test. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 07:30 0.50 SAFETY MTG AF Arrive location, obtain work permit. PJSM - review JSA - assign jobs, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster point, emergency procedures, simultaneous operations, incident and spill reporting. 07:30 10:00 2.50 RURD PIPE AF RD coil tubing unit, flowback iron, frac iron, and well test iron off of BC 19. Verified nightcap was on and well secured. 10:00 15:00 5.00 RURD COIL AF RU coil tubing unit, set flowback iron, reroute frac and wet test iron. 15:00 15:30 0.50 TEST CSG AF Fill lines with KCL and test casing to 5500 psi and while monitoring 0 psi on annulus. Good test. 15:30 17:00 1.50 TEST ' BOPE AF Displace lines and tree with methanol, test BOP and equipment as follows: Shell test 250 low /4500 high BJ iron 6500psi Blind rams 250 low /4500 high Tubing rams 250 low /4500 high Flowback iron and well test iron 500 low/4500 high Good test. Jim Regg (AOGCC) given 24 hr notice of BOP test and test was waived. 17:00 17:30 0.50 PERF TBG AF Perforate Module 1 with Expro. ✓ 17:30 18:00 0.50 SECURE WELL AF Shut down equipment and secure well for night. Turn in work permit, sign out, and leave location. Report Date: 4/912009 Job Category: COMPLETION 24 Hr Summary Fracture stimulate 6 intervals, clean out, jet in with nitrogen Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 08:00 1.00 RURD STIM AF Final rig up of fracture stimulation equipment. Hook up pop off valves to 3 1 x 9 5/8" annulus, pump in lines to pressure up annulus. 08:00 08:30 0.50 SAFETY MTG AF PJSM - Topics - slips, trips, falls, red lights for fire, blue lights for gas emission, sirens, muster area, buddy rule, three second rule, review JSA, assign jobs, review work for the day, reporting of incidents, high pressure work / danger, emergency routes, emergency phone numbers, 283 -1316, let ring three times, no answer, call 911, emergency vehicle, driver 08:30 09:00 0.50 RURD STIM TA MSSM Replace communications card on Pump 1 in order to communicate wth equipment. 09:00 09:30 0.50 TEST EQIP AF Pressure test treatment lines to 8500 # - test successful, pressure test lines to annulus - test successful, pressure annulus up to 2230# 09:30 10:15 0.75 PUMP FRAC AF Successfully fracture stimulated Module 1, interval 8825 - 8835 feet MD, Pumped pad, rate 9.0 BPM, breakdown pressure 6623 #, increased rate to 16.0 BPM, pressure 6960# , pumped 1/2# slurry, rate 16.2 BPM, pressure 6691# , pumped 1# slurry, rate - 16.0. pressure -6030. Pumped 2# slurry, Rate - 15.8 #, Pressure - 5900 #, Pumped 3# slurry, Rate - 16.0, pressure 5950. Treatment finished at 10:00 am. No flex sand, 326 BBL fluid pumped, 8480 # - 20/40 sand in formation. Shut down, strap tanks, prepare for next interval 10 :15 10.30 0.25 PERF CSG AF Perforate Interval 2, 8695 - 8705 feet MD. Shot at six shots per foot, verified at surface and acoustically. 10:30 10:45 0.25 PUMP FRAC AF Fracture stimulate interval 2 -8695 -8705 feet MD, pumped pad - breakdown pressure 5002 #, rate 15.6 BPM, Pressure 5165. Pumped 1# slurry, Rate - 15.6, Pressure - 5021 #. Pumped 2# slurry, rate 15.7 BPM, Pressure 4900 #, Pumped 3# slurry, Rate 15.8, Pressure - 4830 #, Pumped 4# slurry, Rate 16.2, Pressure 5260 #, went to flush. Frac successfully away at 10:35am. Total fluid pumped - 209 BBL, Sand - 11,302 # of 20/40 , flex sand - 1638# 10:45 11:00 0.25 PERF CSG AF Perforate interval 3 - 8559 -8569 feet MD. verified at well and acoustically. www.peloton.com Report Printed: 4/24/2009 • AA Marathon Operations Summary Report ruATM% , OiI Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 11:00 11:15 0.25 PUMP FRAC AF Fracture stimulate Module 3, breakdown pressure 5875 #, pumped pad, rate 16.2 BPM, Pressure - 4903 #. Pumped 1# slurry, rate 15.9 #, pressure - 4600 #, Pumped 2# slurry, Rate - 15.8 BPM, Pressure 4473 #. Pumped 3 # slurry ,Rate - 15.8, Pressure 4253 #, Pumped 5# slurry, Rate 16.1 , Pressure 4634 #, switched to flush. Frac away at 1105 am. Total fluid 204 BBL, Sand - 13,440# , no flex. 11:15 11:30 0.25 PERF CSG AF perforate module 4, interval 8460 -8470 feet MD, verfied at wellhead and acoustically 11:30 11:45 0.25 PUMP 'FRAC AF fracture stimulate module 4. Breakdown pressure 4593 #. Pumped pad, rate 15.9 BPM, Pressue 4430# Pumped 1# slurry, rate - 15.9, Pressure - 4340. Pumped 2# slurry, Rate - 15.7, Pressure -4244# Pumped 4# slurry , Rate - 15.9, Pressue - 4146 #. Pumped 5# slurry, Rate - 16.2 #,Pressure 4465 #. went to flush. Total fluid pumped 214 BBL, sand 17,080 #, no flex sand. Successfully away at 11:35 am. 11:45 12:00 0.25 PERF CSG AF Perforate module 5 - interval 8110 -8120 feet MD. Verified at surface and acoustically. 12:00 12:15 0.25 PUMP FRAC AF fracture stimulate module 5, breakdown pressure 3585 #. Pumped pad, rate 15.5 BPM, Pressure 4430 #. Pumped 2# slurry, rate 15.6 BPM, Pressure - 4341#. Pumped 4# slurry, Rate 15.4 BPM, Pressure - 4330 #. Pumped 6# slurry, Rate 15.5 BPM, Pressure - 4410 #. Switch to flush. Frac away at 12:05 pm. Total fluid pumped - 209 BBL, 20/40 SAND - 19,250 #, FLEX SAND - 2750#, Total Sand - 22,000# 12:15 12:30 0.25 PERF CSG AF Perforate Module 6, Interval 8020 -8030 feet MD. Verified at wellhead and acoustically 12:30 12:45 0.25 PUMP FRAC AF Fracture stimulate Module 6. Breakdown pressure 4447 #. Pumped pad, rate 15.6 BPM, Pressure 4337 #. Pumped 2# slurry, Rate - 15.9 BPM, Pressure - 4243 #. Pumped 3# slurry, Rate 15.8 BPM, Pressure - 4175 #. Pumped 5# slurry, Rate - 15.8 BPM, Pressure - 4066 #. Pumped 6# slurry, Rate 16.3 BPM, Pressure - 4321# Pumped 8# slurry, Rate - 16.2 BPM, Pressure -4882# ,Switch to flush. Frac away at 12:35 pm. Total fluid pumped - 198 BBL, 20/40 Sand - 21,640 #, no flex sand. Monitor pressure on wellhead. ISIP - 3630 #. 12:45 14:45 2.00 RURD STIM AF rig down fracture crew from wellhead, Prepare for coil. 14:45 15:15 0.50 SAFETY MTG AF PJSM - slips, trips, falls, red lights for fire, blue lights for gas emission, sirens, muster area, buddy rule, three second rule, review JSA, assign jobs, review work for the day, reporting of incidents, high pressure work / danger, emergency routes, emergency phone numbers, 283 -1316, let ring three times, no answer, call 911, emergency vehicle, driver 15:15 16:30 1.25 RURD COIL AF Rig up coil unit, shell test injector head 2000 # - successful. 16:30 01:30 9.00 RUNPUL COIL AF Run in hole with CTU 01::30 06:00 4.50 JAR N2 AF Switch to N2, Jet in wet Daily Operations Report Date: 4/9/2009 Job Category: COMPLETION 24 Hr Summary Frac well, clean out w /coil to bottom, jet well in Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 JAR N2 AF Continue jetting well in with BJ Coiltech CTU. Start out of hole at 8:16 am 08:00 09:30 1.50 RUNPUL COIL AF POOH with CTU Kill N2 pumping 9:15 am. Out of the hole at 9:30 am. Turn well over to Expro Well Test. 09:30 10.00 0.50 RURD COIL AF Rig down CTU. Secure well, set Injector head back onto cradle. Well turned over to Expro Well Test. Report Date: 4/14/2009 Job Category: COMPLETION 24 Hr Summary MIRU Expro to run GR to tag fill and run PLT Survey. Majority of gas coming from Modules 3 & 4. Possible water from Module 6. Tight spot @ 8700' wlm. Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 09:30 10:30 1.00 SAFETY MTG AF Hold PJSM. Discuss alarms, muster area, and emergency response. Discussed Expro JSA. Make job assignments. Discuss procedure to run PLT Survey. Obtained work permit and discussed envirionmental issues. 10:30 12:06 1.60 RURD ELEC AF PU lubricator, PU PLT tool string. PT to 2,000 psig. Good test. www.peloton.com Report Printed: 4/24/2009 • • Marathon Operations Summary Report eiAF Tir Oil Co mpany Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:06 14:30 2.40 RUNPUL ELEC AF RIH (1) w/ 2.45" GR. Set down @ 8700. Work tools. Fall thru. RIH. Tag fill @ 8828' WLM. Perfs from 8825' - 8835'. PUH. notice tight spot @ 8700'. See 500 # overpull, Sometimes tools set down in this area. Work thru this area several times. Intermittent problem. Working tools does not seem to fix it. Suspect sand production or casing damage in module 2. 14:30 15:30 1.00 RUNPUL ELEC AF Check tool in air -14.7 psia, 42.8 degree F. RIH (2) w / PLT Tools to 7800' wim. Check tools in lubricator -216.6 psia, 51.7 degree F. @ surface. 15:30 16:00 0.50 LOG CSG AF Log 307min. down pass. 7800- 8700'. Set down in Module 2. PUH. It appears that most of gas is coming from Modules 3 & 4. 16:00 16:30 0.50 LOG CSG AF Log 307min. up pass 8700'-7600'. Appears that very little gas is coming from modules 1 & 2. 16:30 16 0.33 LOG CSG AF Log 60Ymin. down pass from 7800- 8700'. Most of gas appears to be coming from . Set down in Module 2. Attempt to pass thru Module 2, but set down. PUH. Spinner still working. 16:49 17:09 0.33 LOG CSG AF Log 607min up pass 87007800'. 17:09 17:18 0.15 LOG CSG AF Logging down pass @ 907min. 7800'48700'. 17:18 17:27 0.15 LOG CSG AF Pun 90' /min up pass-8700-7800. Temperature anomoly in module 6 could be water production. 17:27 18:27 1.00 RUNPUL ELEC AF POOH. 18:27 19:27 1.00 KURD ELEC AF OOH. Rig down. 19:27 19:37 0.17 SECURE WELL AF Install tree cap and PTest. Test good. Notify night operator that we have finished. Turn in permit. Sign out. Leave loc. www.peloton.com Report Printed: 4/24/2009 Marathon Oil Company Alaska Asset Team • Marathon P.O. Box 1949 O Company Kenai, 99 M ARATHON Telephone 907/7/ 283 -1371 Fax 907/283 -1350 R ECEr MAY T May 12, 2009 Alaska Oil & .> Mr. T Maunder Anc��; Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -421 Open Flow Potential Test Report Field: Beaver Creek Field Well: Beaver Creek 18 Dear Mr. Maunder: Enclosed is the Open Flow Potential Test Report, 10 -421, for well BC -18. This well was spud on January 18, 2009 and completed into the Beluga formation. The information on this report was obtained from a one point test. Please call me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, • c,.J dOLH Kevin J. Skiba Engineering Technician Enclosures: 10 -421 Open Flow Report cc: Houston Well File See Attachment List h Kenai Well File KJS /fi � STATE OF ALASKA RECEIVED' ALASKA OIL AND GAS CONSERVATION COMMISSION GAS WELL OPEN FLOW POTENTIAL TEST REPOR 1 4 ZOOS la. Test: U Initial Lf Annual Lf Special lb. Type Test: Lf Stabilized 11610i(Stai41006 Cdn . tr skin ❑ Constant Time ❑ lsochronal ❑ Other Anchorage 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Oil Company 4/6/2009 208 - 185 3. Address: 6. Date TD Reached: 12. API Number: PO BOX 1949 Kenai, Alaska 99611 -1949 02/05/2009 50 133 - 20584 - 00 - 00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 1,055' FNL, 1,628' FWL, Sec. 34, T7N, R10W, S.M. 160' MSL (21' AGL) Beaver Creek 18 Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 575' FNL, 1,900' FWL, Sec. 27, T7N, R10W, S.M. 9,193' MD 8,638' TVD Total Depth: 9. Total Depth (MD + TVD): Beaver Creek / Beluga Pool 633' FSL, 1,866' FEL, Sec. 27, T7N, R10W, S.M. 9,244' MD 8,689' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 317,475.0 Y 2,433,986.0 Zone- 4 A - 028083 TPI: x- 319,224.9 Y 2,435,745.6 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 319,258.2 Y 2,435,795.0 Zone- 4 Excape Completion Process (Multi -Zone, Frac Stimulated) 17. Casing Size Weight per foot, lb. I.D. in inches Set at ft. 19. Perforations: From To 3.500" 9.3ppf, L - 80 2.992" 9,230' (6 Excape Modules in MD) 18. Tubing Size Weight per foot, lb. I.D. in inches Set at ft. 8,020' 8,030', 8,110' - 8,120', 8,460' - 8,470', NA NA NA NA 8,559' 8,569', 8,695' - 8,705', 8,825' - 8,835' 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): NA - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): ❑ Tubing El Casing 132 F° 1,779 psia @ Datum 7,305' TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N2: % H Prover: Meter Run: Taps: 7,999' 7,465' 0.56 0.31 0.16 0 - Facility - 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line )( Orifice psig Hw F psig F° psig F Hr. Size (in.) Size (in.) 1. 3.826 X 1.000 1500 3.06 45 - - - - -100 2. X 3. X 4. X 5. X Basic Coefficient Flow Temp. Super Comp. - Pressure Gravity Factor Rate of Flow No. (24 -Hour) h 1I wPm Pm Factor F Factor Q Mcfd Fb or Fp Ft g Fpv 1. 138.395 11.735 1514.73 1.00 1.336 1.104 1624 2. 3. 4. 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 2.25 505.0 1.471 0.82 0.56 2. 3. Critical Pressure 673.1 4. Critical Temperature 343.2 5. Form 10 -421 Revised 1/2004 CONTINUED ON REVERSE SIDE Submit in Duplicate RBOMS B L MAY 1 4 2009 Pc 2709 pc 7336004.1 Pf No. Pt Pt Pc Pw Pw Pc Ps Ps Pf -Ps 1. 352 123713.99 2. 3. 4. 5. 25. AOF (Mcfd) 1,793 n 0.750 Remarks: Well was not shut in during test. SIWHP was estimated at 2694 psig based on MFT pressures taken when logging. I hereby certify t at the foregoing is true and orre to the best of my knowledge. • 9 Si ned +• Title Engineeering Technician Date May 12, 2009 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 / - hwPm Fp Basic critical flow prover or positive choke factor Mcfd /psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= -F1TE 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 Q 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 1/2004 Side 2 • BC -18 Beaver Creek Field Attachment List End of Well Report Well Schematic Directional Survey Operations Summary Logs • Array Induction Vectar Processing MD (1- 30 -09) • Array Induction Vectar Processing MD (2 -6 -09) • Array Induction Shallow Focussed MD (1- 30 -09) • Array Induction Shallow Focussed MD (2 -6 -09) • Array Induction Shallow Focussed TVD (1- 30 -09) • Array Induction Shallow Focussed TVD (2 -6 -09) • Photo Density Dual Spaced Neutron MD (1- 30/09) • Photo Density Dual Spaced Neutron MD (2 -6 -09) • Hole Volume Caliper MD (1- 30 -09) • Hole Volume Caliper MD (2 -6 -09) • Quad -Combo Log MD (1- 30 -09) • Quad -Combo Log MD (2 -6 -09) • Compensated Sonic MD (1- 30 -09) • Compensated Sonic MD (2 -6 -09) • Formation Tester MD • Dual Radial Cement Bond Gamma Ray /CCL Compact Disc • Directional Survey • Wireline Log Data • Mud Log Data • Cement Bond Log Data ! S Marathon BC18 Production Interval FORMATION TESTER TEST SUMMARY Hyd Hyd Tool Draw Final Test Pres Pres Flow down Shut -in No. Depth TVD Before After Volume Rate Press Press Remarks 1 9003.00 8447.60 4287 4280 5.0 0.5 4315 4287 NO SEAL 2 9005.00 8449.60 4281 4281 5.0 0.5 4282 4281 NO SEAL 3 9001.00 8445.61 4279 4279 5.0 0.5 4336 4251 LOST SEAL 4 9012.00 8456.60 4286 4285 5.0 0.5 4288 4284 NO SEAL 5 8990.00 8434.61 4273 4273 5.0 0.5 4401 4206 LOST SEAL 6 9003.00 8447.60 4281 4280 5.0 0.5 4282 4280 NO SEAL 7 8944.00 8388.63 4250 4250 5.0 0.5 4419 18 TIGHT 8 8947.00 8391.63 4252 4251 5.0 0.5 3570 32 TIGHT 9 8908.00 8352.64 4232 4232 5.0 0.5 4254 4227 LOST SEAL 10 8906.00 8350.64 4231 4230 5.0 0.5 4517 25 TIGHT 11 8838.00 8282.67 4197 4196 5.0 0.5 2618 3741 GOOD 11 8838.00 8282.67 4197 4196 15.0 1.0 3752 4196 LOST SEAL 12 8836.00 8280.67 4195 4184 5.0 0.5 4350 3617 GOOD 12 8836.00 8280.67 4195 4184 15.0 1.0 4083 4150 LOST SEAL 13 8835.00 8279.67 4185 4196 5.0 0.5 5024 4107 GOOD 14 8832.00 8276.67 4196 4193 5.0 0.5 4607 4106 GOOD 15 8760.00 8204.71 4156 4156 5.0 0.5 4669 4152 LOST SEAL 16 8758.00 8202.71 4154 4154 5.0 0.5 4386 108 TIGHT 17 8748.00 8192.72 4148 4149 5.0 0.5 4645 90 TIGHT 18 8738.00 8182.72 4143 4149 5.0 0.5 4291 4114 LOST SEAL 19 8726.00 8170.72 4134 4147 5.0 0.5 4428 51 TIGHT 20 8711.00 8155.73 4123 4134 5.0 0.5 4793 57 TIGHT 21 8700.00 8144.74 4119 4129 5.0 0.5 4096 4125 NO SEAL 22 8703.00 8147.74 4128 4128 5.0 0.5 4827 3563 GOOD 22 8703.00 8147.74 4128 4127 15.0 1.0 4827 3561 GOOD 23 8695.00 8139.74 4122 4120 5.0 0.5 4332 705 GOOD 24 8698.00 8142.74 4123 4125 5.0 0.5 4740 3516 GOOD 25 8640.00 8084.77 4117 4097 5.0 0.5 4455 732 GOOD 26 8633.00 8077.78 4093 4093 5.0 0.5 4125 733 GOOD 27 8624.00 8068.78 4088 4088 5.0 0.5 4231 3106 LOST SEAL 28 8564.00 8008.82 4055 4055 5.0 0.5 4663 3204 GOOD 28 8564.00 8008.82 4055 4057 15.0 1.0 3133 3200 GOOD 29 8535.00 7979.84 4042 4043 5.0 0.5 4472 3356 GOOD 30 8527.00 7971.84 4038 4039 5.0 0.5 3968 660 GOOD 31 8529.00 7973.84 4040 4039 5.0 0.5 4518 1038 POOR SEAL 32 8517.00 7961.85 4033 4034 5.0 0.5 4342 663 GOOD 33 8470.00 7914.89 4020 4010 5.0 0.5 4721 3607 GOOD 34 8464.00 7908.79 4007 4007 5.0 0.5 4011 4007 NO SEAL 35 8466.00 7910.89 4008 4007 5.0 0.5 4737 3762 GOOD 36 8433.00 7877.92 3990 3991 5.0 0.5 4460 1874 GOOD 0 r 110 37 8428.00 7872.92 3989 3989 5.0 0.5 4106 3972 LOST SEAL 38 8425.00 7869.72 3987 3987 5.0 0.5 4351 692 GOOD 39 8302.00 7747.02 3928 3926 5.0 0.5 4620 3087 GOOD 40 8295.00 7740.03 3922 3923 5.0 0.5 3968 3923 NO SEAL 41 8284.00 7729.04 3917 3917 5.0 0.5 4375 758 GOOD 42 8282.00 7727.04 3915 3915 5.0 0.5 4489 1160 GOOD 43 8280.00 7725.04 3916 3915 5.0 0.5 4638 1077 GOOD 44 8275.00 7720.05 3911 3912 5.0 0.5 4286 603 GOOD 45 8277.00 7722.04 3913 3912 5.0 0.5 4572 1083 GOOD 46 8265.00 7710.05 3906 3907 5.0 0.5 4116 591 GOOD 47 8258.00 7703.06 3903 3903 5.0 0.5 4126 598 GOOD 48 8197.00 7642.12 3873 3873 5.0 0.5 4339 2937 LOST SEAL 49 8192.00 7637.12 3870 3870 5.0 0.5 4280 624 GOOD 50 8189.00 7634.13 3869 3869 5.0 0.5 4074 586 GOOD 51 8133.00 7578.19 3844 3844 5.0 0.5 4419 3264 GOOD 51 8133.00 7578.19 3844 3840 15.0 1.0 3264 3263 GOOD 52 8128.00 7573.20 3837 3837 5.0 0.5 4555 3265 GOOD 53 8110.00 7555.22 3815 3828 5.0 0.5 4332 3262 GOOD 54 8039.00 7484.31 3793 3793 5.0 0.5 4393 2870 GOOD 55 8030.00 7475.32 3789 3789 5.0 0.5 4401 2870 GOOD 56 8015.00 7460.34 3781 3782 5.0 0.5 4408 2868 GOOD 57 7998.00 7443.36 3773 3773 5.0 0.5 4366 1649 GOOD 58 8000.00 7445.36 3774 3774 5.0 0.5 4384 2078 GOOD 59 7992.00 7437.37 3770 3770 5.0 0.5 4233 1520 GOOD 60 7986.00 7411.40 3766 3766 5.0 0.5 4043 1618 GOOD 61 7929.00 7374.45 3738 3739 5.0 0.5 4110 1759 GOOD 62 7936.00 7381.44 3744 3743 5.0 0.5 4104 1556 GOOD 63 7918.00 7363.47 3732 3731 5.0 0.5 4224 2263 GOOD 64 7913.00 7358.48 3729 3730 5.0 0.5 4143 1525 GOOD 65 7767.00 7212.69 3665 3658 5.0 0.5 4199 1791 GOOD 66 7765.00 7210.69 3657 3656 5.0 0.5 4185 3120 GOOD 67 7735.00 7180.74 3641 3642 5.0 0.5 4163 3087 GOOD 68 7710.00 7155.78 3629 3629 5.0 0.5 4120 3080 GOOD • BC -18 • Permit #: 208 -185 API #: 50- 133 - 20584 -00 -00 Pad 3 Prop. Des: A- 028083 1,055' FNL, 1,628' FWL, KB elevation: 160' (21' AGL.) Sec. 34, T7N, R1 OW, S.M. MARATHON WBS #: DD.08.18991.CAP.DRL Latitude: 60° 39' 29.533" N Longitude: 151° 01' 11.195' W - Cond uctor X: 317,4 475 (NAD 27) 20" X56 129.25ppf Y: 2,433,986 (NAD 27) 1 Spud: 1/18/2009 04:00 hrs Top Bottom MD 0' 101' TD: 2/5/2009 13:30 hrs TVD 0' 101' Rig Released: 2/12/2009 06:00 hrs PA #: Surface Casing II 0 13 -3/8" K -55 68 ppf BTC Top Bottom o. MD 0' 2,097' TVD 0' 2,045' 16" Hole Cmt wl 658 sks (290 bbls) of 12.0 ppg, Type 1 cmt , 91 sks (40 bbls) cmt returned to surface Top of 3 -1/2" Tubing Cement __/ .1111/11"' I i @ 6,860' MD Intermediate Casing 9 -5/8" L -80 40 ppf Butt 1 i Top Bottom MD 0' 7,612' TVD 0' 7,058' 12 -1/4" Hole Cmt w/ 290 sks (171 bbls) of Class G Lead @ 10.5 ppg followed w/ 216 sks L, (45 bbls) of Class G Tail @ 15.8 ppg. ,„ 67 sks (40 bbls) returned to surface . - V Production Tubing 3 -1/2" L -80 9.3 ppf EUE Mod Top Bottom MD 0' 9,230' TVD 0' 8,675' 8 -1/2" Hole Cmt w/ 737 sks (154 bbls) Class G @ 15.8 ppg, 100% returns, Chemical Injection Mandrel/ Did not bump @ 8,174' MD (RKB) ? � - j1 ) Excape System Details - 6 Excape modules placed along with 1 chemical injection mandrel Excape System Details - contol line fires modules 2 -6 I � - control line fires Modules 1 Flappers MD (RKB): & chemical injection mandrel Module 6 = 8,040' 1 f Th , ttom @ 8,825' i. an Module 5 = 8,130' [ 8,190' Opens @ 9,545 psi Module 4 = 8,480' �) r Module 3 = 8,580' 1r Beluga Perfs MD (RKB): Module 2 = 8,715' Module 6 = 8,020' - 8,030' (Lower Beluga) Module 1 = NA ,.: Module 5 = 8,110' - 8,120' (Lower Beluga) Module 4 = 8,460' - 8,470' (Lower Beluga) lo Module 3 = 8,559' - 8,569' (Lower Beluga) E1) Module 2 = 8,695' - 8,705' (Lower Beluga) Module 1 = 8,825' - 8,835' (Lower Beluga) TD PBTD 9,244' MD 9,193' MD 8,689' TVD 8,638' TVD Well Name & Number: Beaver Creek 18 Lease: Beaver Creek Field, A- 028083 Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 8,020' - 8,835' (TVD): 7,465' - 8,280' Angle /Perfs: 2.3° Angle @ KOP and Depth: 2.7° / 100' @ 941' Dated Completed: 4/6/2009 Completion Fluid: Prepared by: Kevin Skiba Last Revison Date: 4/24/2009 JTC)A Marathon Operations Summary Report ( =A Oil Company Well Name: BEAVER CREEK 18 Qtr /Qtr. Block, Sec, Town, Range Field Name License No. State /Province Country SEC 34 T 7N R 10 W BEAVER CREEK ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Dhlance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 158.00 21.00 1/18/2009 Daily Operations Report Date: 1/15/2009 Job Category: DRILLING 24 Hr Summary Move rig off of BC -19 location. Remove rnatting boards and clean up spited diesel. Attempt to lay felt. Shut down due to high wind. Cony lay felt & liner. Lay matting boards. Ops Trouble Start Time End Time Dur (his) Ops Code Activity Code Status Code Comment 12:00 16:00 4.00 DEMOB RIG AF Accept rig from BC -19 12:00hrs 01/14/2009. PJSM. Move pump room, generator house, boiler house, and water tank. Prep carrier and move off. Move mud boat. Install gooseneck and move sub base. Pick up matting boards. Move rig components off of BC -19 & out of way. 16:00 19:00 3.00 DEMOB RIG TA ESEI Continue to pick up matting boards and clean up residual diesel spill area on BC -19. 19100 21:30 2.60 PREP LOC AF Grade BC -18 location while continue to pick & dispose liner & felt from BC -19 location. 21:30 23:00 1.50 PREP LOC TA WD Attempt to lay felt & liner on BC -18 location. Too windy. Shut down operation until wind dies down. Release Udelhoven. Cancel Weaver Bros. 23:00 00:00 1.00 PREP LOC TA WD PJSM: Make another attempt to lay felt, wind picked up again. Shut the job down. 00:00 02:00 2.00 PREP LOC TA WD PTSM; Continue picking up & disposing felt from BC -19 location while waiting for wind to die down. All while organizing parts house & working on power boxes for centrifuge house. 02:00 03:00 1.00 PREP LOC AF Finish laying felt & liner on BC -18. 03:00 06:00 3.00 PREP LOC AF PJSM: Lay matting boards on BC -18. Report Date: 1/16/2009 Job Category: DRILLING 24 Hr Summary Finish setting matting boards on BC -18 location. Move in & rig up GD -1 over BC -18 slot. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:00 3.00 PREP LOC AF PJSM. Lay matting boards, chip ice and snow from matting boards. 09.00 12:00 3.00 MOB RIG AF PJSM w /truck drivers for moving rig. Set generator house, boiler house, sub base, water house, mud boat, and pump room. Berm around rig. 12:00 15:00 3.00 RURD RIG AF PTSM: Set pits house, carrier, mechanics shop & parts house. Pull pits & pump room together. Level carrier & install turnbuckles. Pull wires from generator house to pits & pump room. Raise derrick. 15:00 00:00 9.00 RURD RIG AF PJSM w/ ASRC crane operator: Crane fuel tank, stairs, gray iron, dog house, choke house, back landing & windwall, flow line, panic line & BOP connex. Install roof over #1 cooling tower. Run water line & fill rig water tank. Raise gas buster. Install trip tank. Spot catwalk. Pull wires from dog house & choke house to carrier. R/U hydraulic lines, dresser sleeves & "U "tube. Heat up boiler. Install break linkage. R/U pop -off lines. Spot diverter stack. 00:00 06:00 6.00 RURD RIG AF PTSM: Prep & scope up derrick. Adjust guy wires. Install beaver slide, stairs, handrails, light above cooling towers, carrier bows & tarps. Install hydraulic cylinder socks. Replace hose to flow line jet. R/U choke tines to gas buster & flow line. R/U steam aroung rig. Replace water valve in choke house. R/U torque tube. Report Date: 1/17/2009 Job Category: DRILLING 24 Hr Summary Rig up GD -1 over BC -18. Install starting head and N/U 21 1/4" diverter. Fill pits with water. Ops Trouble Start Time End Time Dui (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF Winterize cellar. R/U shock hoses for mud pumps. Set matting boards for mud pump house#3. 0/0 auxillary hydraulic fittings on the top drive. R/U turnbuckles on the top drive torque tube. Replace water line to camp trailer. Relocate water line to rig. Trouble shoot ODS manrider. 12'00 )6:00 4.00 RURD RIG AF PJSM. P/U and hang top drive. Install top drive slide. R/U kelly hose and top drive service loop. Test top drive. Spot pump house#3, hansen tank, Baker MWD house, and Epoch mudlogging unit. 0/0 saver sub on top drive. Spot directional drillers trailer house. 16.00 18:30 2.50 RURD RIG AF PJSM Connect pop off for pump#3. Install 20" starter head & test to 400 psi f/ 10 min. Weld 2" nipple on 20" conductor. www.peloton.com Report Printed: 4/24/2009 • • i - Marathon Operations Summary Report M „ Oil Company Well Name: BEAVER CREEK 18 Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 158.00 21.00 1/18/2009 Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 158.00 21.00 1/18/2009 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 18:30 00:00 5.50 RURD RIG AF PJSM: Install top turnbuckle & adjust torque tube. Install bails & elevators. R/U pump #3 suction line, pop -off & shock hose. R/U Epoch shack. Install mud manifold, choke hose & splash plates. R/U rig tongs, geolograph & pipe spinners. Run lines to hanson tank. Install 2" valve on conductor. 00:00 06:00 6.00 RURD RIG AF PTSM: R/U kill line to conductor. Set stack. R/U directional drillers trailer houe. R/U derrick board. Repair Epoch RPM sensor on top drive. Install plumbing on #1 cooling tower. Insulate pump #3 suction & pop -off lines. Raise flowline on pitcher nipple. Install knife valve on stack. RIU koomey lines. Daily Operations Report Date: 1/18/2009 Job Category: DRILLING 24 Hr Summary N/U diverter and diverter line. Mix spud mud. Rotate starter head & retest to 500 psi f/ 10 min. Finish N/U diverter system & all related components. R/U MWD & mud logging unit. Test diverter system & gas alarms. P/U & stand back drill pipe, hwdp &jars. Test run mud pump #2 (ok). M/U 16" bit, mud motor, string stab & x/o sub. Fill hole & check for leaks. Test run cooling tower & troubleshoot. Test run pump #3 (low oil in gear end). Clean out 20" conductor f/ 30' -101'. Drill 16" vertical hole f/ 101' -1971 Spud well @ 04:00 hrs on 1 -18 -2009. Ops Trouble I_ Start Time End Time Dur(hrs) Ops Code Activity Code Status i Code Comment 06:00 09:00 3.00 RURD RIG AF R/U gas detectors. Cont. working on cooling tower, Cut and slip geolograph line. Test koomey bottles. Mix mud. 09:00 10:00 1.00 RURD RIG AF PJSM. Back out lock downs on starter head and rotate starter head so that diverter line would pass #3 pump suction. Lock down starter head and test to 500psi /10min OK. Spot BJ cement unit and cement silo. Mix mud. 10,00 12:00 2.00 RURD RIG AF N/U diverter line. Mix mud. R/U MWD unit and mud logging unit. 12:00 16:00 4.00 RURD RIG AF PTSM: N/U bell nipple and hook up flow line. Finish N/U diverter line. Mix mud. R/U MWD shack and mud logging unit. 16:00 17:00 1.00 RURD RIG AF PJSM: Rack and strap 6" DP. Mix mud. Test gas alarms. 17:00 18:00 1.00 TEST BOPE AF Test 21 1/4" diverter. Lou Gramaldi AOGCC witnessed test. Tim Lawlor BLM waved witness. 18:00 23:00 5.00 PULD DP AF PJSM: P/U & stand back 70 jts 5" dp, 20 jts 5" hwdp &jars. Strap stands in derrick. 23:00 00:00 1.00 PULD BHA AF P/U floor safety valves. Stage BHA subs & handling tools on rig floor. Test run pump #2 (ok). 00:00 01:00 1.00 PULD BHA AF PTSM: P/U 16" bit, mud motor, string stabilizer &X/O sub. Tag bottom @ 30'. Fill hole & check for leaks (ok). 01:00 02:30 1.50 TEST EQIP 'TA MSFL Test run #1 cooling tower & trouble shoot (wit continue to monitor). Test run _ mud pump #3 & troubleshoot (low oil in gear end). 02:30 04:00 1.50 CLNCUT CSG AF Clean out 20" conductor f/ 30' -101' w/ 375 gpm & 40 rpm's. 04:00 06:00 2.00 DRILL ROT 'AF Drill 16" rat hole f/ 101'-197' for directional tools @ 375 gpm, 400 psi, 40 rpm, tq 1000 ft-lb, wob 0 -5 klb. ART: 1.7 hrs. Spud well @ 04:00 hrs. on 1/18/2009. Report Date: 1/19/2009 Job Category: DRILLING 24 Hr Summary Drill 16" hole f/ 197' -215'. POOH. P/U remaining directional components. RIH. Wash last stand to bottom. Cont drill 16" hole f/ 215'- 1260'. Ops Trouble I_ Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 DRILL ROT AF Drill F /197' to 215'. Very rough drilling. Gravel, sand and coal across shakers. 350GPM, 450psi, 4ORPM, 3K ft-lb torque ,2K WOB. ART =.5hrs 07:00 07:30 0.50 CIRC MUD AF Wash and ream F/215'to 155'. Circ. clean. 07:30 08:00 0.50 TRIP _ DP AF POOH to 44' top of BHA. 08:00 10.00 2.00 TRIP BHA AF 'PJSM. Mill BHA. Orient directional tools. RIH and wash last stand down to 215'. 10:00 12:00 2.00 DRILL ROT AF Drill 16" vertical hole F/215' to 287'. Very rough drilling. Gravel sand and coal across shakers. 350- 420GPM, 500- 650PSI, 2 -3K ft-lb, 45RPM, 5 -6K WOB. ART= 1.3 hrs. 12:00 18:00 6.00 DRILL ROT AF Drill 16" vertical F/287'to 577' . Some rough drilling. Gravel, sand and coal - across shakers. Problems with gravel plugging flow line. 420- 480GPM, 650- 800psi, 2 -3K Ft-lb, 45- 55RPM, 5K WOB, ART= 3.3hrs. 18:00 00:00 6.00 DRILL ROT AF Drill 16" vertical hole f/ 577' -941' @ 530 gpm, 1100 psi, wob 6 -10 klb, 60 rpm, tq 2000 ft -Ibs, p/u 60 klb, s/o 60 klb, rot wt 60 klb. ART: 3.7 hrs. 00:00 06:00 6.00 DRILL ROT AF PTSM: Drill 16" build section f/ 941'-1260'@ 550 gpm, 1200 psi, wob 3 -10 klb, 50 rpm, tq 3000 ft -Ibs, p/u 65 klb, s/o 65 klb, rot wt 65 klb, ART: 1.4 hrs, AST: 2.2 hrs. www.peloton.com Report Printed: 4/24/2009 Marathon Operations Summary Report • U ATU „Oil Company Well Name: BEAVER CREEK 18 Daily Operations Report Date: 11'202009 Job Categoy: DRILLING 24 Hr Summary Drill 16" hole f/ 1260- 2107', Pump hi -vis sweep & cont circ until hole clean. Wiper trip 0 2107' -81'. UD shock sub. Service rig. RIH f/ 81'- 20541 Wash last std to bottom 0 2054'- 2107'. Pump hi -vis sweep w/ nut plug & circ until hole clean. POOH w/ BHA #1© 1800'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 16" build section F/1260' to 1571'. P/U 70K,S /0 70K, ROT 70K 550GPM, 1100psi, 55RPM, 1 -3K Ft-lb, WOB 5 -10K. ART= .7hrs AST= 3.6hrs 12:00 18:00 6.00 DRILL ROT AF PTSM: Drill 16" build section F/1571' to 1988'. P/U 80K, S/O 70K, Rot 75K, 550- 600GPM, 1160- 1500psi, 55- 6ORPM, 3 -5K Ft -lb, WOB 5 -10K. ART= 3.3hrs AST= 1.0hrs. 18:00 20:30 2.50 DRILL ROT AF Drill 16" build section f/ 1988'-210T@ 600 gpm, 1550 psi, wob 10 -25 klb, 60 rpm, tq 5000 ft-Ibs, p/u 82 klb, s/o 77 klb, rot wt 70 klb, ART: 1.2 hrs, AST: 0.7 hrs. 20:30 22:30 2.00 CIRC MUD AF Pump 40 bbl hi -vis sweep @ 600 gpm & 90 rpm's. Cont circ until hole clean. Monitor well (static). 22:30 01:30 3.00 TRIP WIPR AF I PJSM: Wiper trip. POOH f/ 2107' -81'. SLM (no corrections). Hole slick. Proper fillup. Lay down shock sub & two crossover subs. 01:30 02:30 1.00 SERVIC RIG AF PJSM: Service rig. Lube top drive, carrier, crown & blocks. Visual inspection on top drive & derrick. 0230 04:00 1.60 TRIP WIPR AF PJSM: RIH f/ 81- 2054'. Wash down 0 2054'- 2107'. No 01 on bottom. BHA taking 10 klbs max wt f/ 1380'- 1750'. Cleaned up after stroking stands up & down through interval one time. No connecting to top drive required. Recheck (ok). No fill on bottom. 04:00 05:30 1.50 CIRC MUD AF Pump 40 bbl hi -vis sweep w/ nut plug & cont circ until hole clean. Sweep returned © calculated strokes (gauge hole). Circ @ 555 gpm w/ 90 rpm's. Monitor well (static). 05:30 06:00 0.50 TRIP WIPR AF PJSM: POOH w/ BHA #1 @ 1800'. Report Date: 1212009 Job Category: DRILLING 24 Hr Summary POOH & UD BHA #1. Clear rig floor. Rig up to run 13 -3/8" csg. Run 45 jts 13-3/8" csg to 2097'. Rig down csg tools. R/U false rotary table. M/U stab -in tool & RIH w/ 5" dp. Space out & stab into float collar Circulate 1.5 X csg volume. Conduct PJSM wl BJ cement crew. Pump 40 bbl spacer. Test cmt lines to 2760 psi. Mix & pump 12.0 ppg cmt slurry until cmt returns to surface. Displace cmt w/ 33 bbls mud. C.I.P. @ 06:00 hrs. Tim Lawlor - BLM witnessed cement job. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TRIP DP AF POOH wet w/ DP F/1800'to 200'. Hole in good condition. 08:30 10:30 2.00 TRIP BHA AF PJSM. POOH w /BHA UD MWD, string stabilizer, motor and bit. Threads on monels and top of motor galled. 10:30 14:30 4.00 RURD CSG AF PJSM. C/O to long bales. R/U to run 13 3/8" CSG. _ 14:30 20:00 5.50 RUN CSG AF PJSM w/ Weatherford casing crew: P/U 13 -38" shoe track & check floats (ok). Run total 45 jts 13 -38 ", 68 ppf, K -55, BTC casing to 2097' @ 20:00 hrs. Float shoe set @ 2097'. Top of float collar set @ 2051.8'. Hole slick. 20:00 22:30 2.50 RURD OTHR AF PJSM: R/D casing slips, tongs & fillup line. R/U rig tongs & spinners. C/O bails & elevators. R/D stabbing board. Blow down mud lines & check cmt (line. R/U false rotary to run inner string cmt job. 22:30 01:00 2.50 TRIP DP AF PJSM: M/U stab -in tool, 8' pup jt & centralizer. RIH w/ 5" dp to top of 13 -3/8" float collar. 01:00 02:00 1.00 CIRC MUD AF Stab into float collar & circulate 1.5 X csg volume @ 5 bpm. Conduct PJSM w/ BJ cement crew & vac truck drivers while circulating. 02:00 06:00 4.00 PUMP CMT AF Pump 40 bbls Mud Clean II preflush w/ rig pump. Switch to BJ unit, pump 3 bbls water & test cmt lines to 2760 psi (ok). Mix & pump 658 sacks Type 1 cmt w/ 22% LW -6, 20% MPA -1 , 2% CaCl2, 1°, SMS, 0.3% CD -32, 0.05% Static Free, 1 ga1/100 sks FP -6L, 12.0 ppg, 2.483 cu.ft. /sk yield (290 bbls total cmt slurry), 10.328 gal water/sk (162 bbls total mix water), 4:04 hrs thickening time. Displace cement w/ 33 bbls mud. Had 40 bbls cement returns back to surface w/ 100% returns during entire job. Continuous problems with BJ unit losing power & maintaining 5 bpm pump rate. C.I.P. @ 06:00 hrs. Float shoe set @ 2097'. Top of float collar set @ 2051.8'. Tim Lawlor - BLM witnessed cement to surface. Report Date: 1,22/2009 Job Category: DRILLING 24 Hr Summary Sting out of float collar and UD 2 joints DP. Insert DP wipper plug and pump through DP. POOH w/5" DP innerstring. UD centralizer and cement stinger. Empty pits. nipple down diverter, make cuts on 20' and 13 38, install 13 5/8 5M vetco grey multi bowl well head. Nipple up 13 68 5M BOPE. P/U drill pipe, mix mud. www.peloton.com Report Printed: 424/2009 0 • 1 0 -- Oft (Marathon Operations Summary Report 011 Company Well Name: BEAVER CREEK 18 Ops Trouble L' Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 PUMP CMT AF Sting out from float collar and UD 2 -5" DP singles. 06:30 07:30 1.00 PUMP CMT AF Drop DP wiper plug and pump through inner string. Flush stack,mud manifold, and cement lies with retarded water. 07:30 09:30 2.00 PUMP CMT AF POOH w15" DP innerstring. UD DP centralizer, 8' pup and cement stinger. _ 09:30 11:30 2.00 NUND BOPE AF Flush overhead lines in pits. Flush stack. Remove kill line from conductor. Clean and organize rig floor. Empty pits and flush #3 mud pump. N/D diverter lines. 11:30 13:30 2.00 NUND BOPE AF PJSM. N/D diverter line and knife valve. RID bleeder line, fill up line, trip tank lines, turnbuckles and actuator for trip tank valve. Remove at bolts on diverter stack. Empty and clean pits. 13:30 17:30 4.00 NUND BOPE AF PJSM. Rough cut 13 318 csg. lay down cut joint. Nipple down bell nipple. Remove 21 1/4" diverter. 17:30 21:30 4.00 NUND BOPE I AF Remove starter hd. , make cut on 20" conductor, make final cut on 13 3/8 csg. - Dress stub, Install 13 5/8-5M Vetco grey multi bowl slip on wellhead. 21:30 22:00 0.50 SAFETY MTG AF Stopped the job and held safety meeting, to review recent incidents and how to prevent them. _ 22:00 00:00 2.00 NUND BOPE AF Energize seals on the 13 5/8" slip on Vetco wellhead. Test seals to 1500psi /10min. N/D and remove single gate rams from bottom of BOP stack. N/U 36" 13 5/8" spacer spool 00:00 06:00 6.00 NUND a BOPE AF PJSM. Move in and nipple up 13 5/8 -5M BOPE S, Rd,A BOP stack. Replace discharge line on hopper in mud pits. 1 Daily Operations Report Date: 1123,2009 Job Category: DRILLING 24 Hr Summary N/U BOPE. Weekly safety meeting. Test ROPE. Test CSG, P/U 156jts. 5" DIP Ops Trouble Start Time End Time I Dur OpsCode Activity Code Status Code Comment - 06.00 12:00 6.00 NUND BOPE AF PJSM. Fill pits with water and mix flopro mud. Cont. N/U 13 5/8" 5M S,Rd,A BOPE. R/U mouse hole. Set pipe racks. N/U check valve and kit line. N/U choke line. R/U trip tank valve actuator. R/U chains and turnbuckles. R/U bleeder lines, 12:00 13:00 1.00 SAFETY MTG AF Weekly safety meeting with both crews and all service personnel. 13:00 16:30 3.50 NUND ROPE AF Install rig floor drip pan and drain hose. Layout DP on rack. M/U test plug and 5" test joint and RIH and set. Function BOP's. Prep for BOP test. Cont. to mix mud. 16:30 20:00 3.50 TEST BOPE AF Test 2 7/8" X 5 1/2" variable rams, blind rams, annular, choke line HCR, choke line manual valve, kill line inner and outer manual valves, Kill line check valves, top drive upper and lower valves, safety valve, I130P valve to 250/3000psi . Tested all gas alarms. Performed koomey performance test. Test witnessed by Tim Lawlor of the BLM. AOGCC Jim Reg waved witness. 20 :00 21:00 1.00 TEST CSG AF PJSM; Test 13 3/8 csg., 1500 psi for 30min. no loss. 21:00 21:30 0.50 RUNPUL _ WBSH AF PJSM; Install wear bushing w/ 12 3/8 ID, blow down choke and mud lines. '21:30 06:00 8.50 PULD DP AF 1 PJSM; Pick up and rabbit, 156 Jts.,5" -19.5# S -195 , 4 1/2 IF drill pipe. Strap in derrick. 1 _ Report Date: 1/24/2009 Job Category: DRILLING 24 Hr Summary P/U and rack back 5" DP. P/U bit and BHA. RIH and drill shoe track and shoe. Cleanout old hole and 20' new hole to 2027'. Dsiplace to new flopro mud. Perform FIT to 12.0PPG. POOH.UD Bit, P/U 12 1/4 PDC, MWD, RIH, Drill f72127' -2700' Ops Trouble Start Time End Time Our Cho) Ops Code Activity Code Status Code Comment - 06:00 08:30 2.50 PULD DP AF Cont. to P/U 5" DP and rack back in derrick(total 156jnts). 08:30 10:00 1.50 PULD , BHA AF PJSM. P/U 12 1/4" mill tooth bit, mud motor, 12 118" stabilizer, and pony - monel collar. 10:00 11:30 1.50 REPAIR EQIP TA MODS PJSM. Dress threads on monel CSDP and steel X/O. 11:30 13:30 2.00 TRIP DP AF PJSM. RIH and tag cement @ 2045'. 13:30 14:30 1.00 DRILL CMT AF Drill FC @ 2052' and shoe track and shoe @ 2097'. Hard cement across shakers. Clean old hole to 2007. _ 14 15:00 0.50 DRILL ROT AF Drill 12 1/4" hole F/2007'to 2027'. Up wt. =88K Dn. wt. =75K Rt wt. =80K Tq. =4K ART =.2hrs. J 15:00 16:30 1.50 CIRC MUD AF Circ. B/U. Pump 30bbls water followed with 45bbls high vis pill. Displace hole to 8.7ppg flopro mud. 16:30 17:30 , 1.00 TEST LOT AF Perform fit test to 12.0ppg EMW(350psi, 8.7ppg mud, TMD shoe 2045). J www.peloton.com Report Printed: 4242009 41110 • Marathon Operations Summary Report ALMA = Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 17:30 19:30 2.00 TRIP DP AF PJSM; POOH w /5" DP., HWDP, Flex collars, lay down bit. 19:30 22:30 3.00'TRIP DP AF I PJSM; Make up bit #3, Pick up MWD, orient MWD, RIH w/ Flex collars, HWDP, Test MWD, Cont RIH T/ 2127' 22:30 00:00 1.50 DRILL ROT AF PJSM; Drill 12 1/4" tangent hole section f/ 2127' - 2252', ART =.6, AST =0, Up wt. =88K, Dn. wt. Rt wt. =80K, Pump =400 GPM, 650 psi. 00:00 06:00 6.00'DRILL ROT AF Drill 12 1/4" tangent hole section ((2252'- 2700', ART =4.1 AST =0 Up wt. =90K Dn wt. =85K RT wt. =87K RPM =60 Tq. =5K Bit wt. =6K Daily Operations _Report Date: 1/25/2009 Job Category: DRILLING 24 Hr Summary 2700' to 4343' Circ. bottoms up for wiper trip. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" tangent hole section F/2700' to 3140' ART =3.5hrs AST =.4HRS 450-500GPM, 800- 1000psi, 60- 65RPM, 8 -12K WOB, 3 -4K TO, P /U97K S10 90K Rot 95K. Pump engine#1 failed @ 11:00hrs 3060'. Pump with pumps#2 and #3 while repair pump#1 control drill 100ft /hr 450GPM. 12:00 18:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/3140' to 3470 ART= 3.8hrs AST =.3hrs AST =HRS 450- 5000PM, 300- 1000psi, 60- 65RPM, 8 -12K WOB, 4 -5K TQ, P/U 105K 8/0 95K Rot 100K. Pump with pump#2 and pump#3 while repair pump engine#1. Control drill 10011/hr 450gpm. Staic losses 1- 1.5BPH. 18:00 00:00 6.00 DRILL ROT AF Drill 12 1/4" tangent hole section F/3470' to 3901' ART =4.7 AST =.2 400 -490 GPM, 1000 psi, Up wt. =115K Dn wt. =100K, RT.wt. =107K. Tq. =6K, 65 RPM. Control drilled 100111hr 450gpm to 3760' @ 22:00hrs pump engine#1 repair was finished. 00:00 05:00 5.00 DRILL ROT AF Drill 12 1/4" tangent F/3901' to 4343' ART =3.6 AST =.4 Up wt. =127K Dn. wt. =100K Rt.wt. =115K, tq. =6K500 GPM, 1100 psi,Bit wt.= 5 -15K, RPM Static losses 3BPH. 05:00 06:00 1.00 CIRC MUD AF Circ. until shakers clean(CBUX2, 500GPM,1000psi,67rpm) Report Date: 1/262009 Job Category: DRILLING 24 Hr Summary Circ. shakers clean @ 4343'. Spot LCM pill in annulus and POOH to CSG shoe @ 2097'. Service rig and slip DRLG line. RIH to 4343'. Drill F/4343' to 5370'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 CIRC MUD AF Cont. to circ. shakers clean(CBUX2, 500gpm,1000psi). Dynamic losses 15- 208PH. 07:00 07:30 0.50 SPOT PILL AF Spot 45BBLS LCM pill in annulus(2sx Flo Vis, 2 sx Poly pac, 10sx KCL, 20ppb SC10, 20ppb SC 40, 20ppb SC 250, 20ppb SC500, 5ppb G -seal, 2.5ppb Mix2 fine, 2.5ppb Mix2 med). Flow check static losses 3BPH. 07 10:00 2.50 TRIP DP AF PJSM. POOH to CSG shoe @ 2107'. Hole in good condition. Losses while POOH 2 -3BPH. 10100 11:00 1.00 SERVIC RIG AF Service rig. 11:00 12:00 1.00 SLPCUT DLIN AF PJSM. Slip drilling line. Flow check static losses 2.513PH. 12:00 14:00 2.00 TRIP DP AF PJSM. RIH w15" DP to 4343'. Wash last stand down(no fill). Hole in good condition. 14 :00 18:00 4.00 DRILL ROT AF Drill 12 1/4" tanget hole section F/4343'to 4620. ART= 2.8hrs AST= .3hrs, 475- 500GPM, 1100psi, 65rpm, 6 -7K TQ, 10 -12 WOB, P/U 140K, 8/0 105K, Rot 120K 18:00 00:00 6.00 DRILL ROT AF Drill 12 1/4" tangent hole section F /4620'to 4996' ART =3.9 AST =.2 /426 GPM, 950 psi, 65 rpm, Up wt. =145K Dn. wt. =110K, Rt.wt =125K, Tq. =6 -7K, Static losses 3 BPH,SIow pump rate down to 420 gpm to slow down fluid losses. 00:00 06:00 6.00 DRILL ROT AF Drill 12 114" tangent hole section F/4996' 10 5370'ART =4.0 AST =0 / 426 GPM, 1000 psi, 65 rpm, Up wt. =147K, Dn. wt. =115K, Rt wt. =127K, Bit wt. 10 -12K, Tq =7K Static losses 3 -5 bph, Mixing G -seal safecarb to control losses. Report Date: 1272009 Job Category: DRILLING 24 Hr Summary Drill F/5370'- 6235', Building 50 bbl. LCM pills for lost circ., Circ 2X bottoms up, Wiper trip f16235'. www.peloton.com Report Printed: 4242009 • • M Mara Operations Summary Report Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12 :00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/5370'to 5668'. Pill 160K S/0 115K Rot 137K 420- 450gpm, 1000- 1100psi, 65RPM, 8K Ft-lb, 10 -20K W0B ART= 3.2hrs AST= .Shrs. Control drill 100ft /hr due to reduced flowrate of 425GPM. Dymanic losses 10 -15BPH and static losses 3BP1-1. Attempted to increased flowrate to 450gpm and losses incresed to 15 -20 BPH. Building SOBBL batches wl22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .5ppb Mix 2 med, .5ppb Mix 2 fine Sppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour. 12:00 18:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/5668' to 5940'. PIU145K 3/0 125K Rot 135K 420gpm, 1000psi, 65RPM, 10 -11 K Ft -lb TQ, 10 -20K WOB ART =3hrs AST= .2hrs. Control drill 100ft /hr due to reduced flowrate of 420GPM. Dymanic losses 10 -15BPH and static losses 3BPH. Increased Low torque from 1% to 2 %. Before P/U 160K, 3/0 115K Rot 137K Tq 10K After P/U 145K S/0 125K Rot 135K Tq 10-11K Building 506BL batches wl22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .Sppb Mix 2 med, .5ppb Mix 2 fine 5ppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour. 18:00 19:30 1.50 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/5940' to 6048'. P /U155K S/0 140K Rot 136K 420gpm, 1000psi, 65RPM, 10-11K Ft-lb TO, 10 -20K WOB ART= 1.2hrs AST =Ohrs. Control drill 100ft/hr due to reduced flowrate of 420GPM. Dymanic losses 10 -15BPH and static losses 3BPH. Low torque 2.25 %. Building SOBBL batches wl22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .5ppb Mix 2 med, .Sppb Mix 2 fine 5ppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour. 19:30 20:30 1.00 REPAIR RIG TA MSHS PJSM; Troubleshoot PLC problem, found loose wire and repaired. 20:30 00:00 3.50 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/6048'to 6205'. P /U155K 3/0 140K Rot 135K 420gpm, 1000psi, 65RPM, 10-11K Ft-lb TQ, 10 -20K WOB ART= 1.8hrs AST = .6hrs. Control drill 100ft /hr due to reduced flowrate of 420GPM. Dymanic losses 10 -15BPH and static losses 3BPH. Low torque 2.26 %. Building 50BBL batches w/22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .Sppb Mix 2 med, .5ppb Mix 2 fine 5ppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour. 00:00 00:30 0.50 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole section F/6205' to 6236'. P /U165K 3/0 140K Rot 135K 420gpm, 1000psi, 65RPM, 10-11K Ft-lb TQ, 10 -20K WOB ART =.6hrs AST =Ohrs. Control drill 10011/hr due to reduced flowrate of 420GPM. Dymanic losses 5 -10BPH arid static losses 3BPH. Low torque 2.25 %. Building 5050L batches wl22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .5ppb Mix 2 med, .Sppb Mix 2 fine Sppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour. 00:30 03:00 2.50 CIRC MUD AF Circ. shakers clean(CBUX2, 430gpm,1200psi). Dynamic losses 5- 10BPH. Flow check 3bbls.hr. static losses. 03:00 03:30 0.60 TRIP WIPR AF PJSM; POOH F/6236' to 5600', Monitor well, fill trip tank, Pump 30 bbl dry job. Hole in good condition. 03:30 06:00 2.50 TRIP WIPR AF Cont. trip out of hole F/5600' to 3800. Daily Operations Report Date: 128/2009 Job Category: DRILLING 24 Hr Summary POOH to CSG shoe @ 2097'. Service rig. RIH to 6235'. Drill F/6235' to 6753' Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 TRIP DP AF Cont. POOH to CSG shoe @ 2097'. Hole in good condition. 07.30 08:30 1.00 SERVIC RIG AF PJSM. Service rig. 08:30 13:30 5.00 TRIP DP AF PJSM. RIH and wash last stand down. Tight spots @ 5880' and 6220'. 5' fill on bottom. www.peloton.com Report Printed: 4242009 • � Marathon Operations Summary Report t art — AWN Oil Company Well Name: BEAVER CREEK 18 Ops Trouble ' C Start Time End Time Dur(hrs) Ops Code Aptivity Code Status Code Comment 13:30 18:00 4.50 DRILL ROT AF PJSM. Drill 12 1/4" tangent section F/6235' to 6375'. ART= 3.6hrs AST =Ohrs. P/U 170K, 3/0 130K, Rot 150K, 420- 450GPM, 1100- 1250psi, 10 -23K WOB, 65RPM, 7 -14K Ft-lb TQ. Building 5013BL batches w/22ppb CaCo3 40, 15ppb CaCo3 250, 1Oppb Cac03 500, .5ppb Mix 2 med, .5ppb Mix 2 fine 5ppb G -seal. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour and a half. Dynamic losses 5- 10BPH. Static losses 3BPH. 18:00 00:00 6.00 DRILL ROT AF Drill 12 1/4" tangent section F/6375' to 6561'. ART= 1.5hrs AST= 1.3hrs. P/U 175K, S/0 130K, Rot 150K, 420- 450GPM, 1100- 1250psi, 10 -20K WOB, 65RPM, 7 -14K Ft-lb TQ. Building 5013BL batches wl22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .5ppb Mix 2 med, .5ppb Mix 2 fine 5ppb G -seal. , increase Lotorc to 3% - 3 1/2% at 1145 hrs. Mixing into the active 2SXS each G -seal, CaCo3 40,250,500, Mix 2 Med and fine per hour and a half. Dynamic losses 5- 100PH. Static losses 5- 1OBPH. '00 00 06:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" drop section F/6561'to 6753'. ART= 1.7hrs AST= 2.5hrs7 Pill 175K, 3/0 133K, Rot 152K, 475GPM, 1100- 1250psi, 10 -20K WOB, 7ORPM, 7 -11K Ft-lb TQ. Building 50BBL batches wl22ppb CaCo3 40, 15ppb CaCo3 250, 10ppb Cac03 500, .5ppb Mix 2 med, .5ppb Mix 2 fine 5ppb G- seal., Lotorc 3% - 3 1/2% .Mixing into the active 2SXS each G -seal, CaCo3 40,250500, Mix 2 Med and fine per 2 hours. Increase flow rate to 475gpm @0100hrs., fluid losses have not increased. Static losses 5- 10BPH. Dynamic losses 5- 10BPH. Daily Operations Report Date: 1/29/2009 Job Category: DRILLING 24 Hr Summary Drill F/6753' to 7376' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/ 6753'- 6949' P/U 180kibs 3/0 135kdbs Rt. Wt. 156kIbs. Tq. 7.5 -13 ft -Ib 475gpm 1200- 1350psi. 10- 23wob. 7Orpm. Static losses to hole 0 Dynamic losses 2 -3bbls per hr. Increase pump rate to 525gpm no losses. Ast= 1.7hr Art = 1.8hr. Penetration rate sliding 16- 30fph. 65 -95fph rotating. 12:00 18:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/6949 "- 7117' P/U 195kIbs 3/0 145kIbs Rt. Wt. 165kIbs. Tq. 7.5 -13 ft -lb Increase pump rate to 600gpm 1200- 1350psi. 10- 23wob. 70rpm. Static losses to hole 0 Dynamic losses 2 -3bbls per hr. . Ast= 2.9hr Art = 1.7hr. Penetration rate sliding 16- 30fph. 65 -95fph rotating. 18:00 00:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f17117'- 7283' PIU 195kIbs 8/0 145kIbs Rt. Wt. 165kIbs. Tq. 8 -13 ft-lb / pump rate 600gpm 1200- 1350psi. 10- 23wob. 70rpm. Static losses to hole 0 Dynamic losses 2 -3bbls per hr. Ast= 2hr Art = 1.7hr. Penetration rate sliding 16- 30fph. 65 -95fph rotating. Mud wt. 9.4+ 00:00 06:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/ 7283'- 7376' P/U 190kIbs 8/0 145kIbs Rt. Wt. 167kIbs. Tq. 8 -13 ft-lb / pump rate 600gpm 1200- 1350psi. 10- 45wob. 70rpm. Static losses to hole 0 Dynamic losses 2 -3bbls per hr. Ast= 2.5hr Art = 2.1 hr. Penetration rate sliding 6- 56fph. 65 -95fph rotating. Mud wt. 9.4+ Report Date: 1/30/2009 Job Category: DRILLING 24 Hr Summary Drill f/ 7376' to 7623',Circulate B/Ufor sample, POOH f/ wiper trip f/ 7623' to 5921', Tight f/ 6860' to 5921'RIH, try to break circ.,pipe plugged, POOH. At 3000,' 0600 hrs.Static loses 2 bph. Ops Trouble L_ Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/ 7376'- 7496' P/U 197kIb S/0 150kIb Rt. Wt. 175kIb Tq 9 -14kIb fl-lb 600gmp rotating 475gpm sliding. 10 -40k4b wob. 70rpm. Dynamic fluid loss 2 -3bbls per hr, Static losses 1 -2 bbl per hr Art= 1.6hr Ast = 3.9hr. Diffculty sliding due to formation 12:00 18:00 6.00 DRILL SLID AF Drill/ Slide 12 1/4 hole drop section f/7496'- 7623' P/U 200klb 3/0 145kIb Rt. Wt. 175k1b Tq 9 -14kIb ft-lb 600gmp rotating 475gpm sliding. 10 -40kIb wob. 7Orpm. Dynamic fluid loss 2 -3bbls per hr,.Static losses.1 -2bbl per hr Art= 3.7hr Ast =1.1 hr. Diffculty sliding due to formation. 18:00 19:30 1.50 CIRC MUD AF Circulate 300spm 600gpm 2150psi at 7623' for B/U samples to confirm 9 5/8 casing point. Continue circulating until shakers clean up for Wiper trip.Shut down pumps and check static losses, 2 bph. www.peloton.com Report Printed: 4/24/2009 • • N M Marathon Operations Summary Report _Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 19:30 23:00 3.50 TRIP WIPP AF PJSM; POOH f/ wiper trip f/7623' TO 5921' Tight spots f/6860' to 5992' work thru them without pump or rotating. 23:00 00:00 1.00 TRIP WIPR AF MDDS PJSM; RIH F/5921'- 7623', Hole slick in good condition. No Gain/ Slight loss 1 bbl 00:00 00:30 0.50 CIRC MUD TA MDDS PJSM; Fill pipe, break circ, after 400 strokes pipe plugged. Attempt to unplug pipe, could not circ. ,Monitor well, fill trip tank, blow down mud lines 00:30 06:00 5.50 TRIP DP TA MDDS PJSM; POOH wet f/ 7623' SLM out of hole, found cement in drill pipe at 5300'. Rattle pipe out of hole, cement found strung up and down drill pipe. 3000' at 0600 hrs. No Gain 2 bbl per hr. loss Daily Operations • Report Date: 1/31/2009 Job Category: DRILLING 24 Hr Summary POOH f/ 3000', 1 bbl per hr. losses, inspect D/P for cmt. , L/D jars, LJD BHA, Inspect conn. for galling and cmt. ,R /U Weatherford wireline, Run Quad combo logs, f/ 7616'- 2097',M/U BHA RIH rabbit pipe for cement. At 4100' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06.00 09:00 3.00 TRIP DP AF Continue POH f 3000' with drillpipe. No gain/ 1 bbl per hr loss. Inspect drillpipe for cement. all pipe from 3000' to BHA clear of cement. 09:00 10:00 1.00 TRIP BHA AF POH lay down 6 1/4 jars . Stand back HWDP inspect connections for cement or galling, all joints clear. 10:00 12:00 2.00 PULD BHA AF Inspect all Non mag tool joints for galling, none found. Lay down X overs,Monels and Stablizers, Check filter sub on top of MWD, found sub screen packed off and plugged with cement from drillpipe. Lay MWD down. Break out bit and lay down motor. 12:00 13:30 1.50 RURD ELEC AF PJSM : Rig up weatherford wire line service E- line tools. P/U quad combo logging tools. Load source. 13:30 22:00 8.50 LOG OH AF RIH with quad combo tools on E- line To 5907' work tools down to 5980. unable to pass, POH with quad combo logging assy. Lay down 2 arm caliper tool! Rih with logging tools asnd tag bottom at 7623' no fii1. Log from 7623' to2097'.POH with logging tools. Note: hole taking 1 bbl per hr 22:00 23:00 1.00 RURD ELEC AF PJSM; Rig down Weatherford wireline. 23:00 00:00 1.00 PULD BHA AF PJSM; Measure and make up Clean out asst'. X.O, Bit sub and 12 1/4" Baker Hughes M1 -XL Mill tooth bit 00:00 06:00 6.00 TRIP DP AF RIH with HWDP, 5" Drill pipe.Rabbit pipe with 2.75 drift running in hole rattling drillpipe and checking for cement. Report Date: 2/12009 Job Category: DRILLING 24 Hr Summary RIH, Rabbiting drill pipe, LJD plugged D /P, Wash f/5679'-7623', Pump LCM pill, dry job, Could not break saver sub conn. LJD single w/ sub, POOH, P/U single break saver sub, Pull wear ring, L/D single, P/U 9 5/8 csg hanger make dummy run, Change dies on top drive grabber, Serv. Rig. Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP DP AF Continue RIH rabbiting / checking drillpipe for cement.. to 5610'. Lay down 4joints of drillpipe ( plugged with cement) 08:00 15:00 7.00 TRIP DP AF Circulate B/U at 5679' Clear drillpipe of any cement. pump at 450gpm1250psi. Continue to RlHand rabbbit drillpipe from mast for cement., Wash and ream f- 5860' - 5980' clean up tight hole. Precautionary wash f- 5980' to 7556' . Clean up tight hole at 7556' to 7560' Wash to bottom at 7623' tag 1' of fill Hold safety meeting with oncoming crew, discuss non routine operation ( running rabbit while RIH.) Review plan forward for tour. No gain/ 1 -2 bbl per hr loss to hole. 15:00 18:30 3.50 CIRC MUD AF Circulate and pump Hi vis weighted sweep at 7623' Pump 300spm 600gpm 1150psi. Rotate at 85 rpm while reciprocating pipe . P/U 190kIb S/0 140klb Rt 160kIb Tq 9500 -10000 ft-Ibs. Sweep returned with 2X increase in cuttings/ sand over shakers. Continue circulating until shakers clean up. Place LCM pill at 4500'. Note: Called BLM (Tim Lawlor) gave notice of running and cementing 9 5/8 casing 1500hrs 1/31/09 18:30 19:00 0.50 TRIP DP AF Monitor well, Pump dry job, Blow down mud lines POH f 7623' 19:00 19:30 0.50 TRIP DP TA MSHS PJSM Could not break saver sub off from Drill pipe, connection over torqued, Lay down single with saver sub still connected. 19:30 03:30 8.00 TRIP DP AF POOH f/ 7623' to 5911' tight spot, also at 5848', cont. to POOH to surface Iay down BHA. 03:30 05:00 1.50 RUNPUL WBSH AF PJSM; Pick up single off catwalk. Break off saver sub. Make up test joint . , retrieve wear bushing. Remove wear bushing and lay down single. www.peloton.com Report Printed: 4/24/2009 Marathon Operations Summary Report � Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 05:00 05:30 0.50' CLEAN RIG AF PJSM; Pick up 9 5/8 casing hanger and make dummy run. 05:30 06:30 1.00 i SERVIC RIG AF PJSM; Service rig and change dies on top drive grabber. Daily Operations Report Date: 22/2009 Job Category: DRILLING 24 Hr Summary 0/0 5" pipe rams to 9 5/8, test to 250/3000psi f /10 min. ,Repair grabber, c/o bails, elevators, P/U spyder, PJSM w/ Weatherford, P/U and M/U shoe track, RIH w/ 9 5/8 -40# L -80 BTC csg., P/U 166Jts.= 6637.34' r ' Cps Trouble L Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TEST CSG AF 0/0 5" pipe rams to 9 5/8 casing rams. Set test plug.P /U 9 5/8 test joint and test casing rams to 250/3000 10 min. Test passed. Lay test jt down, pull test plug. 08:30 09:30 1.00 REPAIR RIG TA MSTD Repair grabber dies on top drive pipe handler. 09:30 15:00 5.50 RURD CSG 'AF PJSM: Rig up to run 9 5/8 casing. move torque tube back, Install fill up tool. 0/0 bails, elevator spider and casing tongs. R/U stabbing board and function test. 15:00 15:30 0.50 SAFETY MTG AF 'PJSM: hold PJSM and review JSA for running 9 5/8 casing rig crew. and weatherford casing crew. 15:30 06:00 14.50 RUN CSG AF Pick up and make up shoe track, baker loc all connections, install tea centrailerrs on each joint of shoe track. Fill pipe and check floats. Run in hole with 9 5/8 40ppf L -80 BT0 casing filling each joint on the fly.installing centrailzers as per program Run a total of 190joints with 46ea centrailzers and 8 stop rings. Stop and circ. at shoe, 2074', Break circ. at 3213',pump 70 bbls.total, P/U 166 jts.= 6637.34' RIH at reduced rate to minimize fluid loss.Calc. displacement plus or minus 3 bbls., Up vvt. =257K, Dn. wt =155K. Report Date: 232009 Job Category: DRILLING 24 Hr Summary RIH w/ 9 5/8 csg. to 7612', Circ. cond. mud, Batch mix cmt., R/U cmt .lines test to 3000 psi.Cement Csg. Cmt in place at 1530 hrs.R /D cmt., Install pack off, R/D cmt.equip., R/U floor, cut drilling line, Change out bails and rams, test BOPE Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment _ 06:00 08:30 2.50 RUN CSG AF Continue running 9 5/8 Casing . Make up landing joint and wash from 7590' to 7612' Land 9 5/8 casing out in multi bowl wellhead. Circ at 106spm 207gpm 630psi. On issues running casing to bottom. Caculated displacement of 9 5/8 casing 107bbIs actual displacement 76bbls. Hole still taking 1 bbl per hr. Note Float collar set at 7529.9' Shoe set at 7612.4' 08:30 10:30 2.00 CIRC MUD AF Circulate and condition mud for Casing cement job 106spm 470psi 207gpm. Rig down casing tools while circulating. - 10:30 12:00 1.50 KURD CMT AF PJSM : Blow down mud lines. R/U BJ cement/ Plug dropping head. Hold PJSM with cementers and crews, review scope of cement job, highlighting cold weather operations and hazards involved in the cementing process. 12:00 15:30 3.50 PUMP CMT AF Batch mix. 100bbIs 10.5ppg Cement. Test Cement lines to 3000psi. Drop bottom plug Mix and pump 20bbls of 10ppg seal bond sweep Followed by 171 bbls 10.5ppg 290sacks Class G cement + 15% BA -90,+ 1% CD -32,+ .5 SMS,+ 1.2% FL- 63, +47% LW -6,+ .5 %R -3 static free, + 1 gps FP -6L. with a yield of 3.324 cu /ft/sk 12.669ga1/sk. Followed by 216sacks class G, + 1.2% BA -56, .4% CD -32, +2% SMS, +.2% R -3, +3 % KCL, +.05 static free, !gps FP 6L. 15.8 ppg, yield 1.176 cuft /sk. 4.944 gal /sk Drop top plug with 5bbl H2o Switch to rig pumps and displace with 565.69bb1 9.4 flo -pro mud. Displace at 4.Bbbl per min and 700psi, Bump plug and pressure up to1430psi, hold for 5min,bleed off pressure, floats held. Cement in place at 1530hrs, 100 % returns 15:30 16:30 1.00 RURD CMT AF Blow down cement and mud lines. R/D cement head and lines. 16:30 18:00 1.50 TEST WLHD AF PJSM; Install packoff on 13 5/8 X 9 5/8 Mandrel hanger, top conn. 10.375 -5 Stub Acme box. Test to 5000 psi for 10 min. 18:00 19:00 1.00 NUND BOPE AF PJSM; Lay down landing joint, Change 9 6/8 csg. rams to 2 7/8 X 5 12 variable rams. '19:00 00:00 5.00 RURD CSG AF PJSM; Rig up rig floor, adjust turnbuckles an torque tube for top drive. Rig down stabbing board. 00:00 02:00 2.00 RURD RIG AF PJSM; Change out long bails to short bails, rig up drill pipe elevators. 02:00 03:00 1.00 SLPCUT OLIN AF PJSM; Slip and cut drilling line 100'. Adjust crown -o- rnatic www.peloton.com Report Printed: 4/24/2009 Marathon Operations Summary Report N�a" ATM, „Oil Company Well Name: BEAVER CREEK 18 0ps Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 03:00 06:00 3.00 TEST BOPE AF PJSM; Rig up test BOPE, Shell test BOP , choke line froze, thaw out.Door leaking on BOPE, change out door seal. Daily Operations Report Date: 2/4/2009 Job Category: DRILLING 24 Hr Summary Test BOP, Install wear bushing. Test csg. to 1700 psi 930 min., Thaw out kelly hose an top drive. Make up BHA, P/U 54 jts. 5" drill pipe. Ops Trouble Start Time End Tune Dur(hrs) Ops Code i Activity Code Status , Code Comment _ 06:00 15:00 9.00 TEST DOPE AF Test 2 7/8" X 5 1/2" variable rams, blind rams, annular, choke line HCR, choke line manual valve, kill line inner and outer manual valves, Kill line check valves, top drive upper and lower valves, safety valve, IBOP valve to 25013000psi Tested all gas alarms and PVT system. Performed koomey performance test. Test witnessed by JeffJones. AOGCC , Tim Lawlor, BLM called @1730 2 -1 -2009. NOTES: Tested to BLM spec. 10 minute sets, H2S sensor on rig floor failed audible and light, replaced and retested, OK. CMV valves 7 & 12 failed greased and retested OK. Rig floor safety valve failed, replaced & retested, OK. Flow line indicator light, audible failed, frozen, thawed out, OK. Choke line , Kill line and top drive frozen , thaw out 15:00 15:30 0.50 RUNPUL WBSH AF Set wear bushing (ID 9 ") Rig down test joint 15:30 16:30 1.00 TEST CSG AF Test casing to 1700psi 30min. Inital pressure 1700 final pressure 1700. Rig down/ blow down mud lines. 16:30 18:00 1.50 REPAIR RIG TA MSOT Thaw out Frozen mud lines, rotary hose. 18:00 22:00 4.00 PULD 'BHA AF r PJSM; Make up 8 1f2 bit and BHA, for 8 1/2 hole section. Steam connections before making up. RIH with HWDP. Test MWD. Blown down mud lines. 22:00 03:00 5.00 PULD DP AF PJSM; Pick up and rabbit 54jts. 5" drill pipe,Steam connections before making up. To 2569' 03:00 06:00 3.00 TRIP DP AF PJSM; Trip in hole from derrick to 4025' fill pipe, RIH. At 0600hrs Circulating/ r Fill pipe at 7480' Report Date: 2/52009 Job Category: DRILLING 24 Hr Summary Cont RIH to 7480'. Wash down fir 7480 7529'. Drill out shoe track f/ 75297612'. Drill 20' new hole. Circ & condition hole. Perform F.I.T.w/ 9.45 ppg MW, 980 psi @ 7068' TVD = 12.1 ppg EMW. Drill 8-1/2" hole f/ 7643'- 8800'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code , Status Code Comment _ 06:00 06:30 0.50 TRIP DP AF Continue rih circulate f- 7480'- 7529', Tag top of float collar 06:30 08:30 2.00 DRILL CMT AF Drill out float collar and shoe track f- 7529'- 7612', Clean out old hole f-7612' to 7623', Drill new hole f- 7623' to 7643' 20' for fit test. P/U 185kIbs 8/0 137kIbs Rt. Wt.165kIb TO 8 -9.5 ft-Ibs. ART 0.3 hrs, AST 0 hrs 08:30 09:30 1.0.0 CIRC MUD AF Circulate BIU and condition mud for FIT test 395gpm 1150psi _ 09:30 10:00 0.50 TEST LOT AF Perform FIT 9.45MW 980psi at 7068TVD = 12.1 EMW 10:00 18:00 8.00 DRILL ROT AF PJSM: Drill 8 -112 vertical hole section f/ 7643'- 8135' @ 508 gpm, 1900 psi, wob 5 -15 klb, 70 rpm, tq 9.11 kft-Ibs, p/u 205 klb, s/o 145 klb, rot wt 173 klb, ART: 5.5 hrs, AST: 0 hrs. 18:00 00:00 6.00 DRILL ROT AF Drill 8 -112 vertical hole f/ 813F-8530 500 gpm, 2100 psi, wob 5 -10 klb, 70 rpm, tq 10 -14 kft-Ibs, p/u 210 klb, s/o 150 klb, rot wt 175 klb, max gas 65 units, avg bkgnd gas 10 units, ART: 3.6 hrs, AST: 0 hrs. 00:00 04:00 4.00 DRILL ROT 'AF PTSM: Drill 8 -112 vertical hole f/ 8530' -8764' @ 510 gpm, 2100 psi, wob 5 -15 klb, 70 rpm, tq 12 -14 kft -Ibs, p/u 215 klb, s/o 155 klb, rot wt 183 klb, max gas 65 units, avg bkgnd gas 10 units, ART: 2.9 hrs, AST: 0 hrs. 04:00 06:30 1.50 REPAIR RIG TA 'MSPW Replace driveline on carrier #2 dennison & add coolant to #2 engine. 05:30 06:00 0.50 'DRILL ROT AF Drill 8 -112 vertical hole f/8764' -8800' @ 510 gpm, 2100 psi, wob 5 -15 klb, 70 rpm, tq 12 -14 kft-Ibs, p/u 215 klb, s/o 155 klb, rot wt 183 klb, max gas 2 units, ART: 0.3 hrs, AST: 0 hrs. Report Date: 2/6/2009 Job Category: DRILLING 24 Hr Summary Drill 8 -112" hole to T.D. @ 9244'. CBU. Make wiper trip f/ 9244' to 8198'. Backream f/ 81987630'. Pull into 9 -5/8" csg @ 7612'. Service rig. RIH f/ 7612'- 9184'. Wash down f/ 9184'- 9244'. Circulate w/ repair pump #1. Pump hi-vis sweep & circ until hole clean. Monitor wet. Pull 5 stds. Pump dry job & drop 2 -3/8" rabbit. POOH w/ SLM f/ 8956 Ops Trouble Start Time End Time . Our(hrs) Ops Code Activity Code Status Code Comment 06:00 13:30 7.50 DRILL ROT AF Drill 8 112 vertical hole section f 8800 510gpm 2100psi 70rpm, tq 11 -13 kft-Ibs p /u220klbs /o 155k1b rot wt. 188k1b Max gas 42units ART = 5.Bhr AST =0 No gain /Loss. www.peloton.com Report Printed: 4/24/2009 • � Marathon Operations Summary Report M aR - arxarl Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 13:30 14:30 1.00 CIRC _ MUD AF Circulate B/U to confirm TO at 9244' 255stks 1850psi 510gpm, No Gain/ Loss 14:30 19:30 5.00 TRIP WIPR AF Monitor Well POH f -9244' ( wiper trip) 9244' -7612' 9 518 casing shoe. Work various tight clays. Back ream and wash f 8198' -7630' Pull into shoe at 7612'. 19:30 20:00 0.50 SERVIC RIG AF PJSM: Service rig. Grease top drive, blocks and carrier. 20:00 21:00 1.00 REPAIR RIG TA MSOT Replace 4" valve on #2 mud pump. Plug hydraulic lines to stabbing board. ( Leaking ). Repair leak on carrier power steering pump #2. 21:00 22:30 1.50 TRIP WIPR AF PJSM: RIH fl 761Z-9184'. Wash last std to bottom f/ 9184'- 9244'. No ledges. No fill. 22:30 00:30 2.00 CIRC MUD TA MSFL PJSM: Circ with mud pump #3 @ 210 gpm & 75 rpm while change out 2 swabs on pump #1. Dennison pump went out on pump #2. 00:30 02:00 1.50 CIRC MUD AF Pump hi -vis sweep & circ until hole clean w/ 420 gpm & 75 rpm. Monitor wet (static). Trip gas 121 units. No visible increase in cuttings over shakers. 02 :00 06:00 4.00 TRIP DP AF POOH 5 stds 1/ 9244'- 8956'. Pump dry job. Drop 2 -38" rabbit. Cont POOH fl 8956' -4200' w /SLM. Daily Operations Report Date: 2/7/2009 Job Category: DRILLING 24 Hr Summary POOH & LID BHA. R/U & run quad -combo a -logs on wireline. R/U & RIH to 7612' w/ RFT logging tool on wireline. Wait on pick pts from geology. RIH & run RFT's on wireline. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP JDP AF Continue Poh SLM f -4200' to BHA. No gain /Loss. No correction to SLM. 08:00 10:30 2.50 TRIP BHA AF PJSM: Stand back HWDP and jars. LJD monels,pony collar, stablizer, and MWD. Break out bit and LJD motor. No sign of gauling on at connections. Filter sub plugged with cement. Three jets on bit plugged . 10:30 11:00 0.50 CLEAN RIG AF Clean /clear rig floor 11:00 12:30 1.50 RURD ELEC AF PJSM : Rig up weatherford wire line tools. Load source 12:30 17:30 5.00 LOG OH AF Run in hole with Quad -combo logging tools on e- line. Run tools to 9213' and log into 9 5/8 casing at 7612' Make secound pass. POH with quad combo tools. Unload source and lay down tools 17:30 22:00 4.50 LOG OH AF P/U weatherford RFT tools and run in hole on e -line park at 7600' Wait on pick points. 22:00 06 :00 8.00 LOG OH AF RIH ft 7600' to 9003' w/ RFT tool on wireline. Took total of 34 formation test. Will attempt to take 22 additional. Current depth = 8464' @ 06:00 hrs. Report Date: 23/2009 Job Category: DRILLING 24 Hr Summary Run RFT logs f/ 8464' -7710. POOH & IJD wireline tools. Move to completion phase phase @ 14:30 hrs on 2/7/2009. Ops Trouble Start Time End Time Din (hrs) Ops Code Activity Code Status Code Comment 06:00 14:30 8.50 LOG OH AF Continue taking MFT pressures from 8464' to 7710'. Overall tested 68points with 73 pressure tests. POH with mft tools and lay down. Rig down weatherford wire line service. Move to completion phase at 1430hrs 2 -7 -2009 Report Date: 2,8/2009 Job Category: DRILLING 24 Hr Summary Run RFT logs 1/ 8464'- 7710'. POOH & LJD wireline tools. RIH w/ 8 -1/2" cleanout assy. CBU & cont circ until hole clean, POOH while laying down 5" drill pipe. Move to completion phase @ 14:30 hrs on 2/7/2009. Tim Lawlor - BLM notified for running & cementing 3 -1/2" casing @ 08:30 hrs. on 2/7/2009. cementing Ops Trouble Start Time End Time Dug (hrs) Ops Code Activity Code Status Code Comment 14:30 21:00 6.50 TRIP DP AF PJSM: Make up 8 1/2 clean out assy. 8 1/2 bit ,bit sub with float HWDP and jars. RIH to 9132'. Hit ledge @ 9132'. Fill pipe @ 4714' & 7612'. No gains or losses. 21:00 21:30 0.50 REAM OH AF Wash & ream down f! 9132'- 9244'. Work through ledge @ 9132' (ok). No fill on bottom. 21:30 23:00 1.50 CIRC MUD AF CBU & cont circ until shakers clean @ 400 gpm & 75 rpm. Trip gas = 69 units. Monitor well (static). Pump dry job. Blow down mud {lines. 23:00 06:00 7.00 PULD DP AF POOH while laying down 5" drill pipe. at 3190' 0600hrs. Report Date: 2/92009 Job Category: DRILLING 24 Hr Summary LJD 5" drill pipe. Pull wear ring. P/U 3 -1/2" test jt & test variable rams to 250/1700 psi f/ 5 min. R/U & run 3 -1,2 ", 9.3 #, L -80, EUE Mod casing. Ops Trouble Start Time End Time Dug (hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 TRIP DP AF Continue POH lay down drillpipe f -3100' total joints LID 281jts of drilipipe,and 21jts of HWDP and jars. No gain/ Loss www.peloton.com Report Printed: 4/24/2009 • Marathon Operations Summary Report u1471%) Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 09:30 10:00 0.50 RUNPUL WBSH AF PJSM : Review JSA.R /U wear bushing tool pull wear bushing. 10:00 12:00 2.00 TEST CSG AF PJSM: M/U 3 1/2 test joint set test plug. test 3 112 casing 250/1700 5min. 12:00 13:30 1.50 RURD RIG AF Rig down floor, tongs, spinners and 5" drillpipe handling tools. 13:30 15:30 2.00 RURD CSG AF Change out bails, rig up casing tongs and elevators. Set Expro control line spools and rig up. Set expro boom truck. 15:30 16:00 0.50 SAFETY MTG AF Hold safety meeting, discuss the process of running the excape system on 3 1/2 casing. 16:00 06:00 14.00 RUN CSG AF Make up 3 -1/2" casing shoe track & check floats (ok). RIH w/ 3 -1/2 ", 9.3 #, L -80, EUE Mod casing w16 Excape modules, 1 chemical injection assy, 2 control lines & 1 sacrificial line. Ran 210 jts of 284 total jts. Current depth: 6898' @ 06:00 hrs. Daily Operations Report Date: 2/10/1009 Job Category: DRILLING 24 Hr Summary Run 3 -1/2" csg to 9222'. R/U & circulate. Run correlation log. Space out csg string 7' down. R/U & cement 3 -1 csg string in place @ 9229.9'. Attempt to bleed pressure off3 -1/2" csg & check floats (negative). Re attempt to bleed pressure off csg (negative). WOC while: Flush & blow down surface mud lines. Begin emptying mud pits. Hot bolt stack & prepare to N /D. Change water pump & thermostat on #2 carrier engine. Bleed pressure off 3 -1/2" csg. R/U to run CBL log. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:30 4.50 RUN CSG AF Continue running 3 1/2 casing to 7600' Stop and circulate casing volume 80spm 455psi 215gpm. At 9 5B Shoe. p/u 83KL8 s/o 71 klb. Blown down lines. Run 3 1/2 casing f 7600 to 9222' No gain / loss 10:30 12:00 1.50 CIRC MUD AF R/U circulating head „Circulate B/U spot conquor 303 corrision inhibtor at 6000stks to place in 9 5/8 X 3 1/2 annulus from 7062 to surface. Pump 105spm 550 psi 5 bbls per min. Note Placed 900 bands on control lines 12:00 16:30 4.50 LOG OTHR AF PJSM rig up and run Expro wire line serdice to run gamma /ray correlation log for position of module assemblies. 16:30 17:00 0.50 RUN CSG AF Space out tubing string. Move 3 -1/2" csg & Excape modules down 7" as per correlation log. Float shoe set @ at 9229.9'. Float collar set @ 9193.0' 17:00 19:30 2.50 PUMP CMT AF PJSM w/ BJ services: Switch to BJ unit, pump 5 bbls water & test cmt lines to 3000 psi (ok). Pump 40 bbl spacer. Mix & pump 736.5 sacks Class "G" cmt w/ 1.2% BA -56, 0.5% EC-1, 0.4% CD -32, 0.2% SMS, 0.3% R -3, 3% KCL, 0.05% Static Free, 1 gal /100 sks FP -6L, 15.8 ppg, 1.176 cu.ft. /sk yield (154.2 bbls total cmt slurry), 4.939 gal water /sk (86.6 bbls total mix water), 3:28 hrs thickening time. Drop wiper plug & pump out w/ 5 bbls water. Displace cement w/ 74.9 bbls 3% KCL water. Plug did not bump @ calculated 80 bbl displacement. Decision made to pump 1/2 bbl increments to clear cement across lower module inside pipe @ 8815' until over displaced by 3 total bbls. Plug still did not bump (total displacement 83 bbls). Attempt to bleed off & check floats (floats did not hold). Bled back 1 bbl fluid, closed bleeder & csg string pressure up to 1200 psi. Make another attempt to bleed off (negative).Pump back 1 bbl & shut in at cement head. Continue holding 1200 psi on csg string. Had 100% returns during entire job. C.I.P. @ 19:10 hrs on 2 -9 -2009. Float shoe set @ 9229.9', top of float collar set @ 9193.0'. Note: Initial displacement pressure 61- 90psi, displacement fluid caught up with plug after 43bbls were pumped. pressure increased from 81 psi to 334psi as displacement caught up with plug. 19:30 00:00 4.50 WAITON CMT AF Flush surface lines & stack. Blow down &flush mud pumps #1 & 2, mix pumps, choke manifold, overhead lines & desilter. Clean up sub base, unchain stack, remove drip pan & rinse trip tank. 00:00 05:30 5.50 VVAITON CMT AF PJSM: R/D bleeder, fillup & trip tank lines, actuator, choke & kill lines. Remove bolts on top & bottom spacer spool. Haul off mud. Change out water pump & thermostat on #2 carrier engine. 05:30 06:00 0.50 LOG CSG TA CPQC Bleed off pressure from 3 -1/2" csg string. R/U & run CBL to verify top of cmt inside 3 -1/2" csg. Report Date: 2/11/2009 Job Category: DRILLING 24 Hr Summary RIH w/ CBL & tag up @ 8710'. Log cmt bond f/ 8710'- 6860'. Lift BOP stack. Pull control lines. Set 85k1b on 3 -1/2" csg slips. Make rough cut on csg. Move out BOP stack. Make final cut on csg. Install & test 3 -1/2" pack -off. Install production tree & test (ok). Multiple attempts to test 3 -1/2" csg (negative). Set BPV. Moving mud & cleaning pits. Begin rig down GD -1 for rig move. www.peloton.com Report Printed: 4,24/2009 " A Marathon Operations Summary Report N „ Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 11:00 5.00 LOG CSG TA CPPL Continue running cement bond log tag top of plug 8710'.WLM. Run cement bond log from 8710' up to 6660 Top of cement. P011 rig down Expro wls. Note good cement bond 6710'up to 6860'. Clean pits and haul off mud for storage at 08.1 Total of 750 bbls 9.5 flo- pro placed in storage • 11:00 13:30 2.50 NUND BOPE AF - Nipple Down BOP,Lift stack Pull control Iines.PFU 100kIb Install 3 12 casing slips Slack off blocks and set 3 112 Casing with 85kIb on slips. Make ruff cut on 3 1/2 casing. 13:30 16:00 2.50 NUND ROPE AF Move BOP stack out of cellar. Make final cut on 3-1/2" csg & dress. Install 3 -12" pack -off & test to 5000 psi f/ 10 min (ok). 16:00 19:30 3.50 NUND TREE AF Install production tree. Set TWC. Test void to 5000 psi f/ 10 min (ok). Test tree to 10,000 psi f/ 10 min (ok). 19:30 21:30 2.00 TEST CSG AF PJSM: Pull TWC & R/U to test 3 -1/2" csg. Attempt to test csg to 2100 psi (negative) wI rig test pump. Pressured up to 2100 psi & steadily dropped 100 psi /min after shutting in. Reattempt test wl same results (negative). Check for leaks in system (negative). Made additional attempts (all negative). Set BPV. Freeze protect tree. 21:30 00:00 2.50 RURD RIG AF PJSM: RID bails & elevators. Pickle mud pumps 1, 2 &3. RID & move # mud pump house. RID & move out centrifuge van. Load up MWD cabin. Move backup generator & cuttings tank. R/D shock hoses. 00:00 06:00 6.00 RURD RIG AF PJSM: RID bleeder, fillup, kill & choke hoses, mud manifold, top drive, turn buckles &torque tube. Finish hauling mud from pits. Pump out poor boy gas buster & sumps in pump room. Freeze protect drawworks. Daily Operations Report Date: 2/12/2009 Job Category: DRILLING 24 Hr Summary R/D rig. Move pump#3, hansen tank and miscellaneous trailer loads. Rig released to KBU 11 -17X © 06:00 hrs on 2 -12 -2009. Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF PJSM. RID derrick board. R/D dresser sleeves between pits and pump room. Crane down back wind walls. R/D gas buster u -tube. UD Beaver slide and BOP connex stairs. Remove hydraulic cylinder socks. R/D choke line to poor boy degasser. R/D mud lines and cement line. Blow down steam and water lines. Load out hansen tank and move out. Load miscellaneous equipment on trailers. PJSM. Crane down back wind walls and landings. Prep derrick to scope down. Crane down panic line. Lower gas buster and remove vent line. R/D service lines. Remove tarps on carrier. 12:00 013:00 12.00 RURD RIG AF PJSM w/ ASRC crane operator: Roll back &tie carrier tarp. Finish removing bows. Remove barrier & cylinder tarps. Unplug choke house & dog house. R/D driller's console. Suck off fuel. Finish prep & scope down derrick. Empty water tank. RID directional & mud engineer trailer. Prep to UD derrick. Unplug carrier lines. Crane out back floor plate. Load out BOP connex. RID service lines. Load out catwalk. Crane off choke house, ODS stairs & platform, flow line, grey iron, dog house, D5 stairs & derrick house. Remove exterior lights, chain derrick, unplug pump cooling towers, RID fuel tank. Load out fuel tank & centrifuge modules. 00:00 06:00 6.00 RURD RIG AF PJSM: Rig down brake linkage. Fold up wind walls. Remove turnbuckles on carrier & prep to move. Pull wires from generator to pump room. UD hand rails on pits, pump room & generator house. Move carrier off mud boat. Split pits & pump room. Rig released to KBU 11 -17X Q 06:00 hrs on 2 -12 -2009. Report Date: 3/11/2009 Job Category: COMPLETION 24 Hr Summary Rig up Pollard Slickline unit to drive cement wiper plug to bottom . Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrive at Beaver Creek field office. Sign in, Review JSA, assign jobs hold PJSM. Topics discussed - active gas production pad, red lights - fire, blue lights - gas emission, sirens, muster points, Review job to be performed, slips, trips, falls. Buddy system, three second rule, Right to stop job,etc. 08:00 09:00 1.00 RURD OTHR AF Rig up Vetco Gray to remove back pressure valve in tree. Rigged up lubricator to remove back pressure valve due to cement collor floats not holding. Remove back pressure valve, rig down Vetco Gray 09:00 09:45 0.75 RURD SLIK AF Rig Up Pollard Wireline, Lubricator and crane truck www.peloton.com Report Printed: 4/24/2009 • . . M arathon Operations Summary Report r a. — AY I , Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 09:45 10:15 0.50 TEST EQIP AF Pressure test lubricator and wellhead equipment - test good 10:15 13:00 2.75 RUNPUL SLIK AF RIH with 1.70" OD Blind box on .265 wire to 8721' MD. Top of wirper plug. Knock plug free, chase to 9020' MD. Beat down to 9039' MD. Continue to try to push down hole unsuccessful. POOH wait on KCL water to pump 13:00 13:45 0.75 PUMP WTR AF Pressure up casing to 1000 #. Pressure after approx. 1 minute 700 #. Wiper plug does not appear to be moving. No pump rate. volume of 3.5" casing is 115 ft . / barrel. 13:45 14:30 0.75 RUNPUL SLIK AF RIH with same bottom hole assembly. Top of wiper plug at 9042' MD. POOH 14:30 15:00 0.50 PULD EQIP AF Rig down Pollard wireline slickline unit, lubricator and crane truck 15:00 15:30 0.50 SECURE WELL AF Move unit to next well, secure wellhead, sign out and turn in work permit. Leave location Daily Operations Report Date: 3/302009 Job Category: COMPLETION 24 Hr Summary Rigged up Expro wireline to run 2.75" OD CIBP rated to 10,000 psi , dump 10 feet of cement on top of plug and pressure test casing. CIBP set at 8982' MD, top of cement at 8972' MD. Unable to get a good pressure test of casing and bridge plug. Fluid in hole was highly gas cut with approx. 300# gas pressure on wellhead when work started. Pressure test equipment on wireline truck is low volume to test lubricator but attempted to test casing. Pressure well up to 700# after plug was set and pressure remained stable for approx. 15 minutes. POOH with setting tool, dumped cement on top of plug. Will re -test well on 4 -2 -09 when we do BJ COIL BOP test on BC -19. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 MOB RIG AF Arrive on location, sign in and obtain work permit 08:30 09:15 - 0.75 SAFETY MTG AF PJSM - review JSA's . assign jobs and responsibilities, active gas production pad, red lights for fires, blue lights for gas emission, sirens, muster area at entrance road, emergency procedures, operators number is 283 -1316 or 911, emergency vehicles, slips, trips and falls, trenche subsidence due to melting, slippery containment etc. 09:15 10:15 - 1.00 RURD ELEC AF Rig up wireline truck, crane, BOP and lubricator 10:15 10:30 0.25 SAFETY MTG AF Hold explosive safety meeting. Assign jobs, placement of signs to turn off transmitters and cell phones. Held meeting simultaneously with ASRC, BJ, BIG G electrical and Marathon to cover simultaneous operations. Cleared area of non - essential personnel. 10:30 11:00 0.50 TEST WLHD AF Pressure test wellhead and lubricator to 1000 #, test good. 11:00 13:30 2.50 RUNPUL ELEC AF Run in hole with 2.75" OD CIBP rated to 10000 psi . Run correlation pass to tie collar locator into Dual Radial Cement Bond / GR / CCL logged by Expro dated 10 Feb, 2008. Set plug at 8988 feet MD. Put off plug and set toolstring back down on top of plug to verify setting. Attempt to pressure test up to 700# on wellhead, monitor pressure for 15 minutes. No drop in pressure. POOH 13:30 15:30 2.00 RUNPUL ELEC AF Run in hole with 30 feet of 2" cement dump bailer. Dump 10 feet of class G cement on top of CIBP. POOH 15:30 16:00 0.50 RURD ELEC AF Rig down Expro wireline unit, crane, BOP and lubricator. 16:00 16:30 0.60 SECURE WELL AF secure wellhead, turn in work permit and sign out Report Date: 4/62009 Job Category: COMPLETION 24 Hr Summary Rig down wireline, rig up frac crew Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 08:30 09:30 1.00 SAFETY MTG AF arrive location, obtain work permit. PJSM - review JSA - assign jobs, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster point, emergency procedures, emergency vehicles, emergency phone - 283 -1316, let ring 4 times, no answer call 911, simultaneous operations 09:30 11:00 1.50 RURD ELEC AF Rig up Expro wireline truck, crane, lubricator. 11:00 11:30 0.60 TEST BOPE AF Pressure test lubricator and BOP to 600 # - successful 11:30 15:00 3.50 RUNPUL ELEC AF Run temperature log to TD. Temperature anomoly at top of Module 4 at approx 8430' MD on down pass with static pressure. Bleed off pressure in casing, pull temperature string back to surface. Anomaly repeats across 8430' interval. 15:00 15:30 0.50 RURD ELEC AF Rig down Expro wireline unit, crane truck, Iubricator.Prepare to pressure test casing, monitoring annular pressure. 15:30 16:30 1.00 RURD OTHR AF Rig up Pollard wireline equipment and pressure test 3 1/2" casing to 5000# while monitoring 3 1/2" X9 5/8" annulus. No pressure increase in annulus. Test successful. www.peloton.com Report Printed: 4i24/2009 • M Marathon Operations Summary Report M a a — nrxar Oil Company Well Name: BEAVER CREEK 18 Cps Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 16:30 17:00 0.50 SECURE WELL AF secure wellhead for evening, turn in work permit, leave location Daily Operations Report Date: 4(7(2009 Job Category: COMPLETION 24 Hr Summary RD coil tubing unit, flowback iron, frac iron, and well test iron RU on BC 18. Test BOP and flowback equipment - Good test. Ops Trouble l - Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 07:30 0.50 SAFETY MTG A.F Arrive location, obtain work permit. PJSM - review JSA - assign jobs, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster point, emergency procedures, simultaneous operations, incident and spill reporting. 07:30 10:00 2.50 RURD PIPE AF RD coil tubing unit, flowback iron, frac iron, and well test iron off of BC 19. Verified nightcap was on and well secured. 10:00 15:00 5.00 RURD COIL AF RU coil tubing unit, set flowback iron, reroute frac and web test iron. 15:00 15:30 0.50 TEST CSG AF Fill lines with KCL and test casing to 5500 psi and while monitoring 0 psi on annulus. Good test. 15,30 17:00 1.50 TEST BOPE AF Displace lines and tree with methanol, test BOP and equipment as follows: Shell test 250 low /4500 high BJ iron 6500psi Blind rams 250 low /4500 high Tubing rams 250 low /4500 high Flowback iron and well test iron 500 low /4500 high Good test. Jim Pegg (AOGCC) given 24 hr notice of BOP test and test was waived. 17:00 17:30 0.50 PERF TBG AF Perforate Module 1 with Expro. 17:30 18:00 0.60 SECURE WELL AF Shut down equipment and secure well for night. Turn in work permit, sign out, and leave location. Report Date: 4/9/2009 Job Category: COMPLETION 24 Hr Summary Fracture stimulate 6 intervals, clean out, jet in with nitrogen Ops Trouble L Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 08:00 1.00 RURD STIM AF Final rig up of fracture stimulation equipment. Hook up pop off valves to 3 1 x 9 6/8" annulus, pump in lines to pressure up annulus. 08:00 08:30 0.50 SAFETY MTG AF PJSM - Topics - slips, trips, falls, red lights for fire, blue lights for gas emission, sirens, muster area, buddy rule, three second rule, review JSA, assign jobs, review work for the day, reporting of incidents, high pressure work / danger, emergency routes, emergency phone numbers, 283 -1316, let ring three times, no answer, call 911, emergency vehicle, driver 08:30 09:00 0.50 RURD STIM TA MSSM Replace communications card on Pump 1 in order to communicate wth equipment. 09:00 09:30 0.50 TEST EQIP AF Pressure test treatment lines to 8600 # - test successful, pressure test lines to annulus - test successful, pressure annulus up to 2230# 09:30 10:15 0.75 PUMP FRAC AF Successfully fracture stimulated Module 1, interval 8826 - 8835 feet MD, Pumped pad, rate 9.0 BPM, breakdown pressure 6623 #, increased rate to 16.0 BPM, pressure 6980# , pumped 1/2# slurry, rate 16.2 BPM, pressure 6691# , pumped 1# slurry, rate - 16.0. pressure -6030. Pumped 2# slurry, Rate - 15.8 #, Pressure - 5900 #, Pumped 3# slurry, Rate - 16.0, pressure 5950. Treatment finished at 10:00 am. No flex sand, 326 BBL fluid pumped, 8480 # - 20/40 sand in formation. Shut down, strap tanks, prepare for next interval 10:15 10:30 0.26 PERF CSG AF Perforate Interval 2, 8695 - 8705 feet MD. Shot at six shots per foot, verified at surface and acoustically. 10:30 10:45 0.25 PUMP FRAC AF Fracture stimulate interval 2 - 8695 -8705 feet MD, pumped pad - breakdown pressure 5002 #, rate 15.6 BPM, Pressure 5165. Pumped 1# slurry, Rate - 15.6, Pressure - 5021 #. Pumped 2# slurry, rate 15.7 BPM, Pressure 4900 #, Pumped 3# slurry, Rate 15.8, Pressure - 4830 #, Pumped 4# slurry, Rate 16.2, Pressure 5260 #, went to flush. Frac successfully away at 10:35am. Total fluid pumped - 209 BBL, Sand - 11,302 # of 20/40 , flex sand - 1638# 10.45 11:00 0.25 PERF CSG AF Perforate interval 3 - 8559 -8569 feet MD. verified at web and acoustically. www.peloton.com Report Printed: 4/24/2009 • j ( 1 - - Marathon Operations Summary Report )61 a Oil Company Well Name: BEAVER CREEK 18 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 11:00 11:15 0.25 PUMP FRAC AF Fracture stimulate Module 3, breakdown pressure 5875 #, pumped pad, rate 16.2 BPM, Pressure - 4903 #. Pumped 1# slurry, rate 15.9 #, pressure - 4600 #, Pumped 2# slurry, Rate - 15.8 BPM, Pressure 4473 #. Pumped 3 # slurry ,Rate - 15.8, Pressure 4253 #, Pumped 5# slurry, Rate 16.1 , Pressure 4634 #, switched to flush. Frac away at 1105 am. Total fluid 204 BBL, Sand - 13,440# , no flex. 11 15 11:30 0.25 PERE CSG AF perforate module 4, interval 8460 -8470 feet MD, verfied at wellhead and acoustically 11:30 11:45 0.25 PUMP FRAC AF fracture stimulate module 4. Breakdown pressure 4593 #. Pumped pad, rate 15.9 BPM, Pressue 4430 #. Pumped 1# slurry, rate - 15.9, Pressure - 4340. Pumped 2# slurry, Rate - 15.7, Pressure - 4244 #. Pumped 4# slurry , Rate - 15.9, Pressue - 4146#. Pumped 5# slurry, Rate - 16.2 #,Pressure 4465 #. went to flush. Total fluid pumped 214 BBL, sand 17,080 #, no flex sand. Successfully away at 11:35 am. 11:45 12:00 0.25 PERF CSG AF Perforate module 5 - interval 8110 -8120 feet MD. Verified at surface and acoustically. 12:00 12:15 0.25 PUMP FRAC AF fracture stimulate module 5, breakdown pressure 3585 #. Pumped pad, rate 15.5 BPM, Pressure 4430 #. Pumped 2# slurry, rate 15.6 BPM, Pressure - 4341#. Pumped 4# slurry, Rate 15.4 EPM, Pressure - 4330 #. Pumped 6# slurry, Rate 15.5 BPM, Pressure - 4410# Switch to flush. Frac away at 12:05 pm. Total fluid pumped - 209 BBL, 20/40 SAND - 19250 #, FLEX SAND - 2750#, Total Sand - 22,000# 12:15 12:30 0.25 PERF CSG AF Perforate Module 6, Interval 8020 -8030 feet MD. Verified at wellhead and acoustically 12:30 12:45 0.25 PUMP FRAC AF - Fracture stimulate Module 6. Breakdown pressure 4447 #. Pumped pad, rate 15.6 BPM, Pressure 4337 #. Pumped 2# slurry, Rate - 15.9 BPM, Pressure - 4243 #. Pumped 3# slurry, Rate 15.8 BPM, Pressure - 4175 #. Pumped 5# slurry, Rate - 15.8 BPM, Pressure - 4066 #. Pumped 6# slurry, Rate 16.3 BPM, Pressure - 4321 #. Pumped 8# slurry, Rate - 16.2 BPM, Pressure -4882# ,Switch to flush. Frac away at 12:35 pm. Total fluid pumped - 198 BBL, 20/40 Sand - 21,640 #, no flex sand. Monitor pressure on wellhead. ISIP - 3630 #. 12:45 14:45 2.00 RURD STIM AF rig down fracture crew from wellhead, Prepare for coil. 14.45 15:15 0.50 SAFETY MTG AF PJSM - slips, trips, falls, red lights for fire, blue lights for gas emission, sirens, muster area, buddy rule, three second rule, review JSA, assign jobs, review work for the day, reporting of incidents, high pressure work / danger, emergency routes, emergency phone numbers, 283 -1316, let ring three times, no answer, call 911, emergency vehicle, driver :15 16:30 1.25 RURD COIL AF Rig up coil unit, shell test injector head 2000 # - successful. :30 01:30 9.00 RUNPUL COIL AF Run in hole with CTU 01:30 06:00 4.50 JAR N2 AF Switch to N2, Jet in well Daily Operations Report Date: 4/9/2009 Job Category: COMPLETION 24 Hr Summary Frac well, clean out w /coil to bottom, jet well in Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 JAR N2 AF Continue jetting well in with BJ Coiltech CTU. Start out of hole at 8:16 am 08:00 09:30 1.50 RUNPUL COIL AF POOH with CTU Kill N2 pumping 9:15 am. Out of the hole at 9:30 am. Turn well over to Expro Well Test. 09:30 10:00 0.50 RURD COIL AF Rig down CTU. Secure well, set Injector head back onto cradle. Well turned over to Expro Well Test. Report Date: 4/14/2009 Job Category: COMPLETION 24 Hr Summary MIRU Expro to run GR to tag fill and run PLT Survey. Majority of gas coming from Modules 3 & 4. Possible water from Module 6. Tight spot @ 8700' wlm. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 09:30 10:30 1.00 SAFETY MTG AF Hold PJSM. Discuss alarms, muster area, and emergency response. Discussed Expro JSA. Make job assignments. Discuss procedure to run PLT Survey. Obtained work permit and discussed envirionmental issues. 10.30 12:06 1.60 RURD ELEC AF PU lubricator, PU PLT tool string. PT to 2,000 psig. Good test. www.peloton.com Report Printed: 4/24/2009 • • ikr Marathon Operations Summary Report i , Oil Company Well Name: BEAVER CREEK 18 Ops Trouble L Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:06 14:30 2.40 RUNPUL ELEC AF RIH (1) w/ 2.45" GR. Set down @ 8700. Work tools. Fall thru. RIH. Tag fill @ 8828' WLM. Perfs from 8825' - 8835'. PUH. notice tight spot @ 8700'. See 500 # overpull, Sometimes tools set down in this area. Work thru this area several times. Intermittent problem. Working tools does not seem to fix it. Suspect sand production or casing damage in module 2. 14:30 15 :30 1.00 RUNPUL ELEC AF Check tool in air -14.7 psia, 42.8 degree F. RIH (2) w / PLT Tools to 7800' wlm. Check tools in lubricator -216.6 psia, 51.7 degree F. @ surface. 15:30 16:00 0.50 LOG CSG AF Log 30Ymin. down pass. 7800' - 8700'. Set down in Module 2. PUH. It appears that most of gas is coming from Modules 3 & 4. 16:00 16:30 - 0.50 LOG CSG AF Log 307min. up pass 8700' - 7800'. Appears that very little gas is coming from modules 1 & 2. 16:30 16:49 0.33 LOG CSG AF Log 607min. down pass from 7800'- 8700'. Most of gas appears to be coming from . Set down in Module 2. Attempt to pass thru Module 2, but set down. PUH. Spinner still working. 16:49 17:09 0.33 LOG CSG AF Log 607min up pass 87007800'. 17:09 17:18 0.15 LOG CSG AF Logging down pass @ 907min. 7800' - 8700'. 17118 17:27 0.15 LOG CSG AF Run 907min up pass - 87007800. Temperature anomoly in module 6 could be water production. 17:27 18:27 1.00 RUNPUL ELEC AF POOH. 18:27 19:27 1.00 RURD ELEC AF OOH. Rig down. 19:27 19:37 0.17 SECURE WELL AF Install tree cap and PTest. Test good. Notify night operator that we have finished. Turn in permit. Sign out. Leave loc. www. pelaton.com Report Printed: 4(242009 I. �+. Company: Marathon Job Number: 2405818 Calculation Method: Minimum Curvature Field: Beaver Creek Magnetic Decl.: 18.79 Proposed Azimuth: 44.3° Borough Kenai Alaska . Corr.: n/a Depth Reference: RKB INTEQ Well Name: BC - 18 Total Survey Corr.: 18.79 Tie into: Surface Rig: Glacier #1 Target Info: Kick -Off 1,000' Build 3/100'- Hold 27.1 - Drop 2/100' to vert. Tool Survey Inc! Azimuth Course TVD VS Coordinates Closure DLS Build Rate Walk Rate No. Type Depth (ft) ( °) ( °) Lgth (ft) (ft) (ft) N/S (ft) EMI (ft) Dist (ft) Ang ( °) (° /100') (° /100') (° /100') 1 Tie in 0 0.00 0.00 0 0.00 0.00 0.00 N 0.00 E 2 MWD 163 0.15 337.84 163 163.00 0.09 0.20 N 0.08 W 0.21 337.84 0.09 0.09 207.26 • 3 MWD 283 0.19 213.80 120 283.00 - 0.05 0.18 N 0.25 W 0.31 305.37 0.25 0.03 - 103.37 4 MWD 402 0.22 299.11 119 402.00 - 0.30 0.12 N 0.56 W 0.57 282.58 0.23 0.03 71.69 5 MWD 523 0.44 294.02 121 523.00 - 0.52 0.43 N 1.19 W 1.26 289.79 0.18 0.18 -4.21 6 MWD 642 0.50 316.26 119 641.99 - 0.66 0.99 N 1.96 W 2.20 296.72 0.16 0.05 18.69 7 MWD 760 0.83 271.35 118 759.99 - 1.23 1.38 N 3.17 W 3.46 293.50 0.50 0.28 -38.06 8 MWD 886 1.27 282.86 126 885.96 - 2.58 1.71 N 5.45 W 5.71 287.45 0.39 0.35 9.13 9 MWD 949 0.93 308.20 63 948.95 - 3.00 2.18 N 6.53 W 6.89 288.49 0.93 -0.54 40.22 10 MWD 1013 1.06 336.80 64 1012.94 - 2.83 3.05 N 7.17 W 7.79 293.04 0.79 0.20 44.69 11 MWD 1077 1.82 348.26 64 1076.92 - 2.03 4.59 N 7.61 W 8.89 301.08 1.26 1.19 17.91 12 MWD 1137 2.37 353.81 60 1136.88 - 0.71 6.75 N 7.94 W 10.42 310.39 0.98 0.92 9.25 13 MWD 1200 3.45 3.52 63 1199.80 1.55 9.94 N 7.96 W 12.74 321.31 1.88 1.71 - 556.02 is 14 MWD 1263 5.00 10.61 63 1262.63 5.27 14.53 N 7.34 W 16.28 333.20 2.59 2.46 11.25 15 MWD 1327 6.96 18.12 64 1326.28 11.07 20.96 N 5.62 W 21.70 344.99 3.29 3.06 11.73 16 MWD 1390 9.03 25.97 63 1388.66 19.19 29.03 N 2.27 W 29.12 355.53 3.71 3.29 12.46 17 MWD 1453 11.22 30.92 63 1450.68 29.85 38.74 N 3.05 E 38.86 4.50 3.74 3.48 7.86 18 MWD 1516 13.46 32.62 63 1512.22 43.00 50.17 N 10.15 E 51.19 11.44 3.60 3.56 2.70 19 MWD 1580 15.88 31.39 64 1574.13 58.83 63.92 N 18.73 E 66.61 16.33 3.81 3.78 -1.92 20 MWD 1643 18.54 30.55 63 1634.30 76.96 79.91 N 28.31 E 84.78 19.51 4.24 4.22 -1.33 21 MWD 1705 20.89 32.09 62 1692.67 97.34 97.77 N 39.19 E 105.33 21.84 3.88 3.79 2.48 22 MWD 1767 22.78 34.91 62 1750.22 119.99 116.98 N 51.94 E 127.99 23.94 3.49 3.05 4.55 23 MWD 1830 24.13 39.02 63 1808.01 144.85 136.99 N 67.02 E 152.50 26.07 3.37 2.14 6.52 24 MWD 1893 26.14 43.03 63 1865.05 171.55 157.14 N 84.61 E 178.47 28.30 4.18 3.19 6.37 25 MWD 1954 27.40 44.26 61 1919.51 199.02 177.01 N 103.57 E 205.09 30.33 2.26 2.07 2.02 26 MWD 2018 28.62 44.85 64 1976.01 229.08 198.43 N 124.66 E 234.34 32.14 1.95 1.91 0.92 27 MWD 2134 28.40 44.62 116 2077.95 284.44 237.76 N 163.63 E 288.63 34.54 0.21 -0.19 -0.20 28 MWD 2198 28.51 45.09 64 2134.21 314.94 259.38 N 185.14 E 318.67 35.52 0.39 0.17 0.73 29 MWD 2325 28.59 45.38 127 2245.77 375.63 302.12 N 228.23 E 378.64 37.07 0.13 0.06 0.23 30 MWD 2451 28.12 46.17 126 2356.65 435.45 343.86 N 271.11 E 437.88 38.25 0.48 -0.37 0.63 31 MWD 2578 27.90 46.34 127 2468.78 495.05 385.10 N 314.20 E 497.01 39.21 0.18 -0.17 0.13 32 MWD 2705 27.89 46.42 127 2581.02 554.43 426.09 N 357.21 E 556.02 39.97 0.03 -0.01 0.06 33 MWD 2832 27.99 46.11 127 2693.22 613.90 467.23 N 400.21 E 615.20 40.58 0.14 0.08 -0.24 34 MWD 2959 27.54 46.84 127 2805.60 673.02 507.97 N 443.10 E 674.07 41.10 0.44 -0.35 0.57 35 MWD 3085 27.09 42.53 126 2917.56 730.80 549.04 N 483.75 E 731.75 41.38 1.61 -0.36 -3.42 36 MWD 3212 26.78 42.54 127 3030.78 788.30 591.43 N 522.64 E 789.27 41.47 0.24 -0.24 0.01 37 MWD 3339 26.85 42.41 127 3144.12 845.57 633.69 N 561.33 E 846.55 41.53 0.07 0.06 -0.10 38 MWD 3466 26.02 45.41 127 3257.85 902.09 674.42 N 600.51 E 903.03 41.68 1.24 -0.65 2.36 • 39 MWD 3593 25.48 46.18 127 3372.24 957.24 712.89 N 640.06 E 958.07 41.92 0.50 -0.43 0.61 40 MWD 3720 26.84 46.14 127 3486.23 1013.20 751.68 N 680.44 E 1013.91 42.15 1.07 1.07 -0.03 41 MWD 3847 26.96 46.06 127 3599.48 1070.63 791.52 N 721.84 E 1071.24 42.36 0.10 0.09 -0.06 42 MWD 3974 26.78 46.66 127 3712.77 1127.99 831.13 N 763.38 E 1128.51 42.57 0.26 -0.14 0.47 43 MWD 4099 26.62 46.59 125 3824.44 1184.11 869.70 N 804.21 E 1184.54 42.76 0.13 -0.13 -0.06 44 MWD 4225 26.82 47.23 126 3936.99 1240.71 908.41 N 845.58 E 1241.05 42.95 0.28 0.16 0.51 45 MWD 4352 28.80 46.16 127 4049.32 1299.90 949.05 N 888.68 E 1300.18 43.12 1.61 1.56 -0.84 46 MWD 4475 28.49 42.35 123 4157.27 1358.84 991.26 N 929.82 E 1359.10 43.17 1.51 -0.25 -3.10 47 MWD 4601 27.97 43.37 126 4268.28 1418.42 1034.95 N 970.35 E 1418.70 43.16 0.56 -0.41 0.81 48 MWD 4728 26.66 41.96 127 4381.12 1476.67 1077.79 N 1009.86 E 1476.97 43.14 1.15 -1.03 -1.11 49 MWD 4853 26.17 42.32 125 4493.07 1532.23 1119.02 N 1047.17 E 1532.57 43.10 0.41 -0.39 0.29 50 MWD 4979 26.17 42.38 126 4606.15 1587.77 1160.09 N 1084.60 E 1588.14 43.07 0.02 0.00 0.05 51 MWD 5106 26.07 42.37 127 4720.18 1643.65 1201.40 N 1122.29 E 1644.04 43.05 0.08 -0.08 -0.01 52 MWD 5233 25.84 42.75 127 4834.38 1699.21 1242.34 N 1159.88 E 1699.63 43.03 0.22 -0.18 0.30 53 MWD 5360 25.65 43.57 127 4948.77 1754.36 1282.58 N 1197.61 E 1754.79 43.04 0.32 -0.15 0.65 • 54 MWD 5486 25.72 45.86 126 5062.32 1808.96 1321.38 N 1236.03 E 1809.37 43.09 0.79 0.06 1.82 55 MWD 5613 25.51 46.75 127 5176.84 1863.83 1359.31 N 1275.73 E 1864.19 43.18 0.35 -0.17 0.70 56 MWD 5740 26.04 47.79 127 5291.21 1918.98 1396.77 N 1316.29 E 1919.27 43.30 0.55 0.42 0.82 57 MWD 5866 26.11 47.78 126 5404.38 1974.26 1433.99 N 1357.31 E 1974.49 43.43 0.06 0.06 -0.01 58 MWD 5993 25.32 48.49 127 5518.80 2029.24 1470.77 N 1398.34 E 2029.41 43.55 0.67 -0.62 0.56 59 MWD 6117 25.02 49.13 124 5631.03 2081.82 1505.50 N 1438.03 E 2081.93 43.69 0.33 -0.24 0.52 60 MWD 6180 25.27 48.24 63 5688.06 2108.51 1523.17 N 1458.13 E 2108.60 43.75 0.72 0.40 -1.41 61 MWD 6243 25.33 47.69 63 5745.02 2135.37 1541.20 N 1478.13 E 2135.45 43.80 0.39 0.10 -0.87 62 MWD 6307 25.48 47.62 64 5802.83 2162.78 1559.69 N 1498.42 E 2162.85 43.85 0.24 0.23 -0.11 63 MWD 6371 25.08 48.02 64 5860.70 2190.06 1578.04 N 1518.68 E 2190.12 43.90 0.68 -0.63 0.63 64 MWD 6434 24.52 46.69 63 5917.89 2216.45 1595.94 N 1538.12 E 2216.49 43.94 1.25 -0.89 -2.11 65 MWD 6498 22.95 46.33 64 5976.47 2242.19 1613.67 N 1556.81 E 2242.23 43.97 2.46 -2.45 -0.56 • 66 MWD 6562 22.30 45.81 64 6035.55 2266.80 1630.75 N 1574.54 E 2266.83 44.00 1.06 -1.02 -0.81 67 MWD 6623 21.13 43.90 61 6092.22 2289.36 1646.74 N 1590.46 E 2289.39 44.00 2.24 -1.92 -3.13 68 MWD 6686 20.16 41.12 63 6151.17 2311.56 1663.10 N 1605.48 E 2311.59 43.99 2.19 -1.54 -4.41 69 MWD 6750 18.21 41.88 64 6211.62 2332.56 1678.86 N 1619.41 E 2332.60 43.97 3.07 -3.05 1.19 70 MWD 6813 17.14 43.24 63 6271.64 2351.68 1692.95 N 1632.34 E 2351.72 43.96 1.82 -1.70 2.16 71 MWD 6875 16.25 43.72 62 6331.03 2369.49 1705.87 N 1644.59 E 2369.53 43.95 1.45 -1.44 0.77 72 MWD 6938 14.81 43.91 63 6391.73 2386.36 1718.05 N 1656.27 E 2386.40 43.95 2.29 -2.29 0.30 73 MWD 7000 13.02 43.42 62 6451.90 2401.26 1728.83 N 1666.56 E 2401.31 43.95 2.89 -2.89 -0.79 74 MWD 7063 12.01 42.12 63 6513.41 2414.91 1738.85 N 1675.84 E 2414.96 43.94 1.66 -1.60 -2.06 75 MWD 7125 10.56 43.47 62 6574.21 2427.04 1747.75 N 1684.07 E 2427.09 43.94 2.38 -2.34 2.18 76 MWD 7189 9.14 42.89 64 6637.26 2437.98 1755.73 N 1691.57 E 2438.03 43.93 2.22 -2.22 -0.91 77 MWD 7251 8.12 44.09 62 6698.56 2447.29 1762.49 N 1697.97 E 2447.34 43.93 1.67 -1.65 1.94 78 MWD 7315 7.26 45.87 64 6761.98 2455.85 1768.55 N 1704.01 E 2455.90 43.94 1.39 -1.34 2.78 79 MWD 7378 5.61 45.25 63 6824.58 2462.91 1773.49 N 1709.06 E 2462.95 43.94 2.62 -2.62 -0.98 80 MWD 7442 4.85 41.90 64 6888.32 2468.74 1777.71 N 1713.09 E 2468.79 43.94 1.28 -1.19 -5.23 • 81 MWD 7505 3.75 46.81 63 6951.14 2473.46 1781.10 N 1716.37 E 2473.51 43.94 1.84 -1.75 7.79 82 MWD 7569 3.49 49.78 64 7015.01 2477.49 1783.79 N 1719.38 E 2477.53 43.95 0.50 -0.41 4.64 83 MWD 7708 3.15 46.97 139 7153.78 2485.51 1789.13 N 1725.40 E 2485.56 43.96 0.27 -0.24 -2.02 84 MWD 7835 3.15 38.67 127 7280.59 2492.47 1794.23 N 1730.13 E 2492.52 43.96 0.36 0.00 -6.54 85 MWD 7958 2.97 40.04 123 7403.41 2499.01 1799.31 N 1734.30 E 2499.06 43.95 0.16 -0.15 1.11 86 MWD 8085 2.85 36.95 127 7530.25 2505.42 1804.35 N 1738.31 E 2505.48 43.93 0.16 -0.09 -2.43 87 MWD 8212 2.60 38.69 127 7657.10 2511.42 1809.12 N 1742.01 E 2511.48 43.92 0.21 -0.20 1.37 88 MWD 8340 2.26 35.84 128 7784.99 2516.81 1813.44 N 1745.30 E 2516.87 43.90 0.28 -0.27 -2.23 89 MWD 8464 2.35 25.62 124 7908.89 2521.63 1817.71 N 1747.83 E 2521.70 43.88 0.34 0.07 -8.24 90 MWD 8590 2.00 23.99 126 8034.80 2526.14 1822.05 N 1749.84 E 2526.22 43.84 0.28 -0.28 -1.29 91 MWD 8714 1.74 32.56 124 8158.73 2530.02 1825.61 N 1751.74 E 2530.11 43.82 0.31 -0.21 6.91 92 MWD 8840 1.73 26.47 126 8284.67 2533.70 1828.93 N 1753.61 E 2533.80 43.80 0.15 -0.01 -4.83 • 93 MWD 8966 1.62 18.54 126 8410.62 2537.11 1832.32 N 1755.03 E 2537.22 43.77 0.20 -0.09 -6.29 94 MWD 9093 1.45 27.55 127 8537.57 2540.27 1835.44 N 1756.34 E 2540.39 43.74 0.23 -0.13 7.09 95 MWD 9187 1.20 19.40 94 8631.55 2542.30 1837.43 N 1757.22 E 2542.43 43.72 0.33 -0.27 -8.67 96 Project 9244 1.20 19.40 57 8688.54 2543.38 1838.55 N 1757.62 E 2543.52 43.71 0.00 0.00 0.00 FW: Beaver Creeek 18 • • Page 1 of 2 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) � ` 05 5 Sent: Monday, April 13, 2009 2:54 PM To: 'Rang, Craig L.' Cc: Henry, Nancy J.; Regg, James B (DOA) Subject: RE: Beaver Creeek 18 Craig, Jim and I have examined your request and APPROVE increasing the vent volume to 12MM ft ^3 of methane. Hopefully the additional flowtime will successfully unload more liquid allowing the FTP to increase. It is unlikely that an further increase will be authorized. In the interest of conserving /capturing gas resources vented, you and I had discussed the possibility of small volume compressors a while back. Has there been any further discussion of this possibility? Call or message with any questions. Tom Maunder, PE AOGCC From: Rang, Craig L. [mailto:crang @marathonoil.com] Sent: Monday, April 13, 2009 9:58 AM To: Maunder, Thomas E (DOA) Cc: Henry, Nancy J. Subject: FW: Beaver Creeek 18 Tom - attached is the Well Test report for BC - 18. The well was fracture stimulated on Wednesday, April 8th, cleaned out and jetted in with N2. The well was turned over to Expro Well Test on April 9th at 5 am. The well isn't responding as well as we would like it to and has only unloaded approx. 400 BBL of the 1300 BBL of fluid used in the frac. Normally, we only get back 50 - 60 % of the water or roughly 700 - 800 BBL in this case. In order to get this well onto the gas sales line, it has to match line pressure of 350 - 400 # at the well head. I do not expect the pressure to increase until we unload more of the load fluid in the formation. I therefore respectfully request an extension of the flaring of the gas period for one additional week and up to 12 MM cubic feet of methane. Please contact me if you should have any questions. Regards, Craig Rang 907 - 283 -1372 907 - 394 -1824 cell From: Rang, Craig L. Sent: Monday, April 13, 2009 9:16 AM To: Mack, Dave Subject: FW: Beaver Creeek 18 From: Rang, Craig L. Sent: Monday, April 13, 2009 7:31 AM 4/13/2009 FW: Beaver Creeek 18 • • Page 1 of 2 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Monday, April 13, 2009 11:27 AM To: Regg, James B (DOA) Subject: RE: Beaver Creeek 18 I confirmed with Marathon's engineer that they are venting the gas. It does go through a flare stack, but that is only to move the release point to above ground level. Tom From: Maunder, Thomas E (DOA) Sent: Monday, April 13, 2009 10:54 AM To: Regg, James B (DOA) Subject: FW: Beaver Creeek 18 Jim, Would you have a look at this? It appears they have recovered -50% of the fluid volume they normally do and they are nearing the 6MM limit established by sundry (309 -067). They are requesting to double the volume. I calculated the daily differential on the liquid production and the fluid recovery rates are: 128 (162 /day), 118 (118 /day), 91 (91 /day), 52 (86 /day). Fluid rate has been declining and looks to be leveling off evidenced by the decreasing daily rate change. If the liquid recovery rate stabilizes at -70 bbl /day then 6 days could be needed to get the nominal recovery. Base on the current gas rates that would be - 9 MM additional vent /flare. I have a call into to Craig Rang to clarify if they are venting or flaring. Your input is appreciated. Tom From: Rang, Craig L. [mailto:crang @marathonoil.com] Sent: Monday, April 13, 2009 9:58 AM To: Maunder, Thomas E (DOA) Cc: Henry, Nancy J. Subject: FW: Beaver Creeek 18 Tom - attached is the Well Test report for BC - 18. The well was fracture stimulated on Wednesday, April 8th, cleaned out and jetted in with N2. The well was turned over to Expro Well Test on April 9th at 5 am. The well isn't responding as well as we would like it to and has only unloaded approx. 400 BBL of the 1300 BBL of fluid used in the frac. Normally, we only get back 50 - 60 % of the water or roughly 700 - 800 BBL in this case. In order to get this well onto the gas sales line, it has to match line pressure of 350 - 400 # at the well head. I do not expect the pressure to increase until we unload more of the load fluid in the formation. I therefore respectfully request an extension of the flaring of the gas period for one additional week and up to 12 MM cubic feet of methane. Please contact me if you should have any questions. Regards, Craig Rang 907 - 283 -1372 907 - 394 -1824 cell From: Rang, Craig L. Sent: Monday, April 13, 2009 9:16 AM 4/13/2009 Marathon BC - 18 � � Oil Company (3 p-) ��: . 5000 4500 4000 - 3500 -- 11111 3000 C.) 2 2500 -- r ca 3 2000 1500 \dr 1000 • 500 0 iimeima_ ..CIA.�L�.A.hflRdnlln....dlll�h l_A►lI►_A11ntni_M_Ah.Ah._ huddra fiemA.h.A h.dh.Mn_AA_ 4/9/09/9/ 091 /9/ 094 /9/0g1/10/0810/08'10/08'10/08"11 /08'11 /08'11 /0811 /0812/08'12/09 04: 5010: 3016: 3022: 3004: 3010: 3016: 3022: 3004 :3010:3016:3022:3004:3010:30 Date /Time —Gas Rates •Water Rates —•--Well Head Pressure L -JAL- [E 0 [ E SARAH PALIN, GOVERNOR ALASKA OIL AND ` =AS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Craig Rang Senior Completions Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611 -1949 Re: Beaver Creek Field, Beluga Oil Pool, Beaver Creek #18 Sundry Number: 309 -067 Dear Mr. Rang: 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. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). 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 rehearing. A request for rehearing 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. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, 4 fr Daniel T. Seamount, Jr. Chair DATED this / 4 day of February, 2009 Encl. • • Marathon Oil Company - MaMarathon Alaska Asset Team P.O. Box 1949 M ARATHON Oil Company Kenai, AK 99611 1 Telephone 907/283 -1371 Fax 907/283 -1350 February 16, 2009 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7 Ave RECEIVED Anchorage, Alaska 99501 FEB 18 2009 Reference: 10 -403 Application for Sundry Approvals Alaska Oil & Gas Cons. Commission. Anchorage Field: Beaver Creek Gas Field Well: Beaver Creek #18 Dear Mr. Maunder: Enclosed please find the 10 -403 Application for Sundry Approvals for BC -18 well. Marathon requests permission to perforate and fracture stimulate the six Excape modules that were in the wellbore during drilling activities. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, 6 2 Kevin J. Skiba Engineering Technician Enclosures: 10 -403 Sundry Notice cc: AOGCC Work Procedure Houston Well File Current Well Schematic Kenai Well File KJS CLR �(\ �i / i'oq STATE OF ALASKA • 09 AL ' S' OIL AND GAS CONSERVATION COMMI SION APPLICATION FOR SUNDRY APPROVAiF 1 ° 2109 20 AAC 25.280 ma fl{� Gas c CQl1'Imisslp6 1. Type of Request: Abandon ❑ Suspend ❑ Operational shutdown •1°@418rate p nc h OrB en aiver ❑ Other ❑ Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate El, 'me Extension ❑ Change approved program ❑ Pull Tubing ❑ Perforate New Pool ❑ Re -enter Suspended Well ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Marathon Oil Company Development si Exploratory ❑ 208 - 185 - 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50 - 133 - 20584 - 00 - 00 - 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No 0 Beaver Creek #18 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): A 028083 160' (21' AGL) Beaver Creek Field / Belu Pool 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 9,244' . 8,689' 9,193' 8,638' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 20" 101' 101' Surface 2,076' 13 -3/8" 2,097' 2,045' 3,450 psi 1,950 psi Intermediate 7,591' 9 -5/8" 7,612' 7,058' 5,750 psi 3,090 psi Production 9,209' 3 -1/2" 9,230' 8,675' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Excape Tubing Grade: Tubing MD (ft): NA NA 3 L - 80 9,230' Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ❑ 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory ❑ Development El - Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: March 29 , 2009 Oil ❑ Gas - Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Craig L. Rang Title Senior Completions Engineer Signature L. Pp2ne (907) 283 -1372 Date " - r February 16, 2009 C ' �t� :� . .7 COMMISSION USE ONLY ( m onditions of approval: Notify Commission so that a representative may witness 1 Sundry Number: ` -/l J / ' V1 o 7 us- J¢w�fy�, � � L MMG� . /9`f l�ev�s - wL<.�k � �e y <Sub i 4i ev( v ' 4 14 W Fa,� `r6r'e 1"10O m “t 0 ispas 4`1�b4 K Plug Integrity ❑ BOP Test [ Mechanical Integrity Test [J Location Clearance ❑ Other: `s500 eg Mme.\ i�a93`1/4_ c...„" lOv 5 Subsequent Form Required: e .C—t.Q . �� ° APPROVED BY l Approved by: COMMISSIONER THE COMMISSION Date: 2 1 7 Form 10 -403 Revised 06/2006 N i : 4 t L Submit in Duplicate • Bc -1s • Permit #: 208 -185 API #: 50- 133 - 20584 -00 -00 Pad 3 Prop. Des: A- 028083 1,055' FNL, 1,628' FWL, KB elevation: 160' 63. AP. Sec. 34, T7N, R10W, S.M. MARATNOM WBS #: DD.08.18263.CAP.DRL Latitude: 60° 39' 29.533" N Longitude: 151° 01' 11.195' W X: 317,475 (NAD 27) Conductor Y: 2,433,986 (NAD 27) 20" K 133 ppf Spud: 1/18/2008 04:00 hrs Top Bottom MD 0' 101' TD: 2/5/2009 13:30 hrs l TVD 0' 101' Rig Released: 2/12/2009 06:00 hrs V PA #: Surface Casing 13 -3/8" K -55 68 ppf BTC Top Bottom ist MD 0' 2,097' TVD 0' 2,045' 16" Hole Cmt w/ 658 sks (290 bbls) of 12.0 ppg, Type 1 cmt , 91 sks (40 bbls) cmt * returned to surface Top of 3 -1/2" Tubing Cement _/ .11(1r• ' 1.. , • @ 6,860' MD * Intermediate Casing 9 -5/8" L -80 40 ppf Butt Top Bottom MD 0' 7,612' TVD 0' 7,058' 12 -114" Hole Cmt w/ 290 sks (171 bbls) of Class G Lead @ 10.5 ppg followed w/ 216 sks (45 bbls) of Class G Tail @ 15.8 ppg. !;' 67 sks (40 bbls) returned to surface 4 Production Tubing 3 -1/2" L -80 9.3 ppf EUE Mod Top Bottom MD 0' 9,230' TVD 0' 8,675' 8 -1/2" Hole Cmt w/ 737 sks (154 bbls) Class G @ 15.8 ppg, 100% returns, Chemical Injection Mandrel/ - Did not bump @ 8,174' MD (RKB) A I Excape System Details - 6 Excape modules placed along with 1 chemical injection mandrel Excape System Details l' - Red contol line fires modules 2 -6 Greer control line fires Modules 1 Flappers MD (RKB): � ? & chemical injection mandrel Module 6 = 8,040' - D� f * Module 5 = 8,130' ' Beluga Perfs MD (RKB): Module 4 = 8,480' 11 j f )i Module 6 = 8,020' - 8,030' (Lower Beluga) Module 3 = 8,580' lor t4 Module 5 = 8,110' - 8,120' (Lower Beluga) Module 2 = 8,715' Module 4 = 8,460' - 8,470' (Lower Beluga) Module 1 = NA +lr Module 3 = 8,559' - 8,569' (Lower Beluga) 1 te Module 2 = 8,695'- 8,705' (Lower Beluga) it ► Module 1 = 8,825' - 8,835' (Lower Beluga) 1 []I TD PBTD 9,244' MD 9,193' MD 8,689' TVD 8,638' TVD Well Name & Number: Beaver Creek 18 Lease: Beaver Creek Field, A- 028083 Municipality: Kenai Peninsula Borough State: Alaska I Country:I USA Perforations (MD): (TVD): Angle /Perfs: Angle @ KOP and Depth: 2.7° / 100' @ 941' Dated Completed: Completion Fluid: Prepared By: Kevin Skiba Last Revison Date: 2/13/2009 • • BC -18 Fracture Stimulation MARATHON Desription Summary of Proposal Beaver Creek 18 is a new well drilled to 9244' MD, 9 5/8" intermediate string set at 7612' MD and cased as a 3.5" Monobore Excape completion string back to the surface. The cement pump down plug got caught up in module #2 and will have to be pushed to bottom by slickline or milling with coiled tubing. A CIBP will be set above the float collar at 9193' MD and cement placed on top of the plug using wireline dump bailer in the weeks preceeding the fracture stimulations. The fracture stimulations consists of six (6) Excape perforating modules selectively positioned across the gas bearing sands. Each module will complete a different production interval with ten feet of perforations followed by individual fracture stimulations in each interval. Typically, Module 1 perforating will be actuated the day before fracture stimulations are scheduled. The Module 1 interval will then be stimulated the following morning followed by perforating Module 2 with its stimulation and continuing this sequence until all Modules have been perforated / stimulated. All Module perforations /fracture stimulation operations are typically concluded in one day, unless screenouts occur. After all treatments have been performed, coiled tubing will be utilized to cleanout the welibore of module debris and frac proppant to PBTD. The well will then be jetted in with nitrogen via the coil tubing. Once the well is flowing on its' own, coil tubing will be pulled from the well and rigged down. Well testing operations will then commence and continue until an acceptable gas rate is acheived and produced frac water load volumes are at manageable levels. Once well is adequately cleaned up, well testing equipment will be rigged down and the well will be turned over to production. Request for Approval to Vent Gas Due to the nature of such fracture stimulations, large amounts of water are injected, along with the fracture proppant that will have to be unloaded and cleaned up during the post fracture flowback/testing period. This unloading, or cleaning up period, requires the well to be vented to atmosphere until enough gas volume is achieved to flow the well into the high pressure sales gas system. The duration of this venting operation can last as little as a few hours up to a number of days based upon reservoir pressures, permeability, well performance, tubing size, and fracture placement success. For Marathon's gas well operations in the Beaver Creek Field, typical vent times are less than 48 hours. However, due to the uncertainty of exactly how long BC -18 will be required to vent to atmosphere, this request is for a maximum vent period of 144 hours with a maximum vent volume during that period of 6 MMCF of methane gas. This volume is minimized due to the utilization of the Excape completion process which enables all intervals of interest to be fracture treated on the same day and unloaded together at one time, instead of multiple frac days with multiple flowback periods each requiring the venting of gas. If you have any questions regarding this gas venting request, please contact me at your earliest convenience. Craig L. Rang February 16, 2009 II • i l € j Q r / i u SARAH PALIN, GOVERNOR ALASKA. OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 Willard Tank FAx (907) 276-7542 Advanced Senior Drilling Engineer Marathon Oil Company 3201 C. Street Ste 800 Anchorage AK 99503 Re: Beaver Creek Field, Beluga Oil Pool, BC 18 Marathon Oil Company Permit No: 208 -185 Surface Location: 1055' FNL, 1628' FWL, SEC. 34, T7N, R1OW, S.M. Bottomhole Location: 747' FSL, 3387' FWL, SEC. 27, T7N, R1OW, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce /inject is contingent upon issuance of a conservation order approving a spacing exception. Marathon Oil Company assumes the liability of any protest to the spacing exception that may occur. This permit to drill does not exempt you from obtaining additional permits or an approval 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 Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission 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 Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). Sincerely, 0/ Daniel . Seamount, Jr. Chair DATED this _ day of December, 2008 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Worldwide Drilling North America M Marathon P.O. Box 3128 M ARATHON Oil Company Houston, TX 77253 -3128 Telephone 713 - 629 -6600 Fax 713 - 499 -6737 November 28, 2008 Daniel T. Seamount, Jr. Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7 Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Kenai Gas Field Well: Beaver Creek 18 Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments. The intent is to drill a well in the Beluga Pool in the Beaver Creek Field. No completion is desired in other pools. For the directional data we utilize the National Geodetic Survey conversion in the program CORPSCON to calculate the State Plane Coordinates in NAD 27 for the planned and actual wellpaths from the NAD 83 data and present both in our directional survey attachment for the 10 -401. We also provide the same data electronically, so that the AOGCC has this for data input into their database. If you require further information, I can be reached at 713 - 296 -3273 or by e-mail at wjtank@marathonoil.com. Sincerely, 1 6 1 eivzo Willard J. Tank Advanced Senior Drilling Engineer Enclosures STATE OF ALASKA w ./,:? - g_Dr ALA. OIL AND GAS CONSERVATION COMAION PERMIT TO DRILL - Iss 20 AAC 25.005 1 a. Type of Work: 1 b. Current Well Class: Exploratory ❑ Development Oil ❑ 1 c. Specify ihvef is proposed for: Drill 0 Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas El Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ❑ Multiple Zone 0 Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 . BC 18 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 9,244 TVD: 8,679 Beaver Creek Field 4a. Location of Well (Governmental Section): 7. Property Designation: Beluga Pool , Surface: 1,055' FNL, 1,628' FWL, Sec. 34, T7N, R1OW, S.M. - A- 028083 . Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 747' FSL, 3,387' FWL, Sec. 27, T7N, R1OW, S.M. December 20, 2008' Total Depth: 9. Acres in Property: 14. Distance to Nearest 747' FSL, 3,387' FWL, Sec. 27, T7N, R1OW, S.M. 2,560 Property: 1,922 ft 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 317,441.965 y - 2,434,136.985 Zone - 4 (Height above GL): (21' AGL) 179 feet Within Pool: 1,200 ft BC 3RD 16. Deviated wells: Kickoff depth: 1,000 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 27.1 degrees Downhole: 4,242 Surface: 2,334 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) Driven 20" 133 K -55 PE 80' 0' 0' 101' 101' 16" 13 3/8" 68 K -55 BTC 2,079' 0' 0' 2,100' 2,051' 651 sacks 12 1/4" 9 5/8" 40 L -80 BTC 7,573' 0' 0' 7,594' 7,029' 290 sacks lead, 216 sacks tail 8 1/2" 3 1/2" 9.3 L -80 EUE 9,223' 0' 0' 9,244' 8,679' 832 sacks 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): 1 Perforation Depth TVD (ft): 20. Attachments: Filing Fee ' J BOP Sketch El Drilling Program El Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat L/1 Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program El 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name /1 ' Willard J. Tank Title Advanced Senior Drilling Engineer Signature i t Phone 713 - 296-3273 Date November 28, 2008 Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: a07 fKc' 5°-/J3 QO,S1'000O Date: I 9,• Lj 0 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:V( Other: Samples req'd: Yes❑ o[I/ Mud log req'd: Yes❑ No� # eort - - - � �5� \��S� H measures• Ye NoV Directional svy req'd: YesV No❑ r APPROVED BY THE COMMISSION 49 ?WV Qi .-k / , DATE•' , COMMISSIONER For 10 -40 • evised 12/2005 € R Submit in Duplicate Beaver Creek 18 Marathon Oil Company Drilling Program Alaska MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Beaver Creek Field BC 18 Originator: Will Tank November 28, 2008 Date Reviewed by: Pete Berea Date Brian Roy Date 12/1/2008 Page 1 of 18 • Beaver Creek 18 • Marathon Oil Company Drilling Program Alaska TABLE OF CONTENTS 1. Emergency Response Information 4 1.1 Directions to Location 4 1.2 Rig Contact Numbers 4 1.3 Marathon Emergency Response Contacts 4 1.4 Outside Emergency Response 4 1.5 Marathon Contact List 5 2. Regulatory Agency Contacts 5 2.1.1. Internal Regulatory Contact 5 2.1.2. External Regulatory Contact 5 3. Regulatory Compliance 5 4. Drilling Program Summary 6 4.1 General Well Data 6 4.2 Working Interest Owners Information 6 4.3 Geologic Program Summary 6 4.4 Summary of Potential Drilling Hazards 7 4.5 Formation Evaluation Summary 7 4.6 Drilling Program Summary 8 4.7 Casing Program Summary 10 4.8 Casing Design 10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) 10 4.10 Casing Test Pressure Calculations 12 4.11 Blowout Prevention Equipment, Testing and General Procedures 12 4.11.1. Function Testing 13 4.11.2. Pressure Testing 13 4.12 Wellhead Equipment Summary 13 4.13 Directional Program Summary 13 4.14 Directional Surveying Summary 14 4.15 Drilling Fluid Program Summary 15 4.16 Drilling Fluid Specifications 15 4.17 Solids Control Equipment 16 4.18 Cement Program Summary 17 4.19 Bit Summary 17 4.20 Hydraulics Summary 18 4.21 Formation Integrity Test Procedure 18 12/1/2008 Page 2 of 18 Beaver Creek 18 Marathon Oil Company • Drilling Program Alaska Attachments • Group Attachment Attached Commercial Information AFE Days /Cost vs. Depth Curves X Project Objectives and Scorecard RSO Coding Information X Requisitions Vendor List Bonus Program Drilling Contract Regulatory / HES Information Emergency Evacuation Plan X H2S Contingency Plan n/a Regulatory Permits X Regulatory Rules and Regulations Risk Analysis Miscellaneous Programs (Vendors) Bit Proposal X Cement Proposal X Directional Plan X Fluids Program X Wellhead Equipment — Description /Drawings Drill String and BHA Summary Rig Mobilization /Mooring Procedure n/a Geological Information Location Map w/ offsets X Offset Data Proposed Formation Pore Pressure, Mud Wt & Fracture Gradient X Temperature Curves Geologic Structure Maps Geologic Cross Section Bathymetry Map n/a Analysis Riser Analysis n/a Station Keeping Analysis — Mooring /DP n/a Stress Check Casing Design File X Maximum Allowable Overpull Miscellaneous Information Wellbore Diagram n/a Rig Elevations X Well Location Diagram X BOP Schematic X BOP Well Control Bridging Document Detailed Casing Specifications X Detailed Drill Pipe Specifications 12/1/2008 Page 3 of 18 • • Beaver Creek 18 Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °39'29.533 "N Longitude - 151°01'11.195'W (NAD 83) From the Kenai airport, go 0.4 mile South on North Willow Street. Turn East on Airport Way, go 0.5 miles. Turn East on Kenai Ground Spur Highway and go less than 0.1 miles. Turn Easton Marathon Road and go 10 miles. In the Beaver Creek Field stay to the left, running past the field office. Go 1.4 miles to Beaver Creek Pad 3. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907 - 283 -1314 907 - 394 -1321 Marathon Supervisor 907 - 283 -1312 907- 394 -1317 1.3 Marathon Emergency Response Contacts Individual Postion Main Phone Altemative Kenai Gas Field Emergency Number 907 - 283 -6465 CERT 24 hrs Notification 1- 800- MOC -CERT CERT Crisis Center Houston 713- 296 -4230 713 - 296 -4237 1.4 Outside Emergency Response Location Contact Phone Fire Kenai / Soldotna, Alaska 907- 262 -4792 Ambulance Hospital Kenai / Soldotna, Alaska Central Peninsula Hospital 907- 262 -4404 Kenai Police 907- 283 -7879 Police Kenai / Soldotna, Alaska Soldotna Police 907- 262 -4455 State Police 907- 262 -4453 Coast Guard 800 - 478 -5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil / Toxic Chemical Spills 800 - 424 -8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 12/1/2008 Page 4 of 18 i • Beaver Creek 18 Marathon Oil Company Drilling Program Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713- 296 -3273 713 - 203 -8398 713 - 499 -6737 832 - 934 -2617 Pete Berga Drilling Superintendent 907 - 565 -3032 907 - 529 -0551 907 - 565 -3076 907 - 346 -3763 Bryan Roy Drilling Manager 713 - 296 -3256 832 - 444 -4772 713 -499 -6707 281 - 246 -4686 Scott Szalkowski Geologist 713 - 296 -3390 713 - 301 -9834 Moksh Dani Reservoir Engineer 713 - 296 -3140 832 - 692 -4700 Craig Rang Completion Engineer 907 - 283 -1372 907 - 394 -1824 Ken Walsh Production Engineer 907 - 283 -1311 907 - 394 -3060 907 - 283 -3050 Rowland Lawson Drilling Supervisor 907 - 283 -1312 907 - 394 -0953 907 - 283 -1313 John Nicholson Drilling Supervisor 907 - 283 -1312 907- 394 -2641 907 - 283 -1313 Dan Byrd Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Mitch Burns Drilling Supervisor 907 - 283 -1312 907 -394 -2641 907 - 283 -1313 2. Regulatory Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Regulatory Compliance , 713 - 296 -3254 979 - 830 -7927 979 - 836 -9390 713 -499 -6748 2.1.2. External Regulatory Contact Contact Title Office Phone Facsimile 24 hr Emergency Pager AOGCC 907 - 793 -1236 AOGCC North Slope Pager - 907 - 659 -3607 BLM 907 - 267 -1442 3. Regulatory Compliance Regulation Requirement Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig. BOP testing interval requirement is now 14 days (20 AAC 25.035 e 10 A). BOP Testing Requirement for a 24 hour notice to AOGCC and to the BLM prior to BOP tests. (20 AAC 25.035 e 10 F) Prior to Spud Requirement for a 24 hour notice to AOGCC and to the BLM prior to spud of the well. Water Sampling Test the rig camp water for the Class C drinking water permit. Surface Casing & Cementing Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing surface casing. Intermediate Casing & Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing intermediate casing. Cementing Cuttings Tank Take picture of cutting tank in use and after cleaning for the ADEC. Logging Requirement for a 24 hour notice to the BLM prior to logging. Production Casing & Requirement for a 24 hour notice to the BLM prior to setting and cementing Production casing (EXCAPE string) Cementing the well. Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig, if going to Ninilchik or Kasilof. Comments 12/1/2008 Page 5 of 18 1111k • Beaver Creek 18 Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name BC 18 Lease / License Surface Location 1,055' FNL, 1,628' FWL, Sec. 34, T7N, R1OW, S.M. WBS Code DD.08.18991.CAP.DRL Slot/Pad Beaver Creek Pad 3 Field Beaver Creek Field Spud Date 12/20/08 (est.) KB (above MSL) 179' . County /Province Kenai Peninsula API No. GL (above MSL) 158' ' State / Country Alaska Permit No. Perm. Datum KB Total MD 9,244' Well Class Development Water Depth N/A Total TVD 8,679' • Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: 1 Comments: 4.2 Working Interest Owners Information Company Working Interest Address Phone Facsimile Marathon 100% P.O. Box 196168 907- 561 -5311 907 - 565 -3076 Anchorage, AK 99519 -6168 4.3 Geologic Program Summary Surface Location Coordinates — NAD 83 From Lease /Block Lines 1,055' FNL, 1,628' FWL, Sec. 34, T7N, R1OW, S.M. Latitude 60° 39' 29.533" N Longitude 151° 01' 11.195" W UTM North (Y) 2,433,889.066' UTM East (x) 1,457,469.824' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Sterling (Not a Prod Target) 5,413 5,000 8.1 Sandstone Gas/Water Beluga LB 16 (Primary Target) 7,694 7,129 3.3 — 9.4 Sandstone Gas Beluga LB 23 (Primary Target) 8,229 7,664 3.3 — 9.4 Sandstone Gas Beluga LB 28 (Primary Target) 8,724 8,159 3.3 — 9.4 Sandstone Gas 12/1/2008 Page 6 of 18 Beaver Creek 18 Marathon Oil Company • Drilling Program Alaska Horizontal Depth (KB) Displacement (ft) MD TVD +N / -S +E/ -W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Beluga LB 16 7,694 7,129 747' FSL, 3,387' FWL, Sec. 27, T7N, R1OW, S.M. 1,802 1,759 Circle 100' radius Beluga LB 23 8,229 7,664 747' FSL, 3,387' FWL, Sec. 27, T7N, R1OW, S.M. 1,802 1,759 Circle 100' radius Beluga LB 28 8,724 8,159 747' FSL, 3,387' FWL, Sec. 27, T7N, R1OW, S.M. 1,802 1,759 Circle 100' radius TD 9,244 8,679 747' FSL, 3,387' FWL, Sec. 27, T7N, R1OW, S.M. 1,802 1,759 Circle 100' radius Comments: 1. There are no zones from surface to TD that have water with a TDS of 10,000 ppm or greater. 2. No zones above the Sterling (5,413' MD, 5,000' TVD) contain oil or gas. 3. The proposed top of cement is over 500' above the Sterling, the highest known hydrocarbon bearing zone. 4.4 Summary of Potential Drilling Hazards Depth KB Hazard Event (TVD) Discussion Precautions Lost Circulation in Sterling and Intermediate Control losses by using sufficiently sized LCM, Take care not to surge the hole during Beluga sands Hole including fibrous and calcium carbonate types. tripping operations. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut -in procedures must be posted in the driller's 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 or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H is anticipated. Gas sands will be encountered from +/- 5,413' MD (5,000' TVD) to total depth of the well. These sands will run from highly depleted to above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. The Flo -Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. Best Practices: 1 Comments: 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None None 0'- 2,100'MD Intermediate None Reeves Quad Combo. Pull GR- Neutron to Basic with GCA, shale density, temperature in and 2,100' — 7,594' MD surface. out, sample collection (10' samples). Production None Reeves Quad Combo, MFT Pressures. Basic with GCA, shale density, temperature in and 7,594' — 9,244' MD Pull GR- Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 12/1/2008 Page 7 of 18 • • Beaver Creek 18 Marathon Oil Company Drilling Program Alaska 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 120', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. RU crane and hammer. Drive 20" conductor to +/ -120 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4 ", 2M flanged. 4. Nipple up 21 1/4 ", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 16" hole to +/- 2,100' set 13 -3/8" casing. 1. Drill a 16" hole to 2,100' MD (2,051' TVD) per the directional plan. 2. RIH with 13 3/8" casing and hang off in the elevators. Make up stab -in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab -in float collar. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. 3. Cut off 13 3/8" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/2 psi. 6. Set wear bushing. 7. Test surface casing to 1,500 psi. 300a l Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Intermediate: Drill 12 -1/4" hole to +/- 7,594' set 9 5/8" casing. 1. PU 12 1/4" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 12 ppg. Estimated Leak Off EMW is 14 ppg. 3. Drill 12 1/4" directional hole to 7,594' MD (7,029' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH and lay down BHA. Pull wear bushing. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 2,0 psi. 6. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 30t0 7. Back out landing joint. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 250/2 psi. 8. Set wear bushing. Test casing to 1,700 psi. 3C)0 Best Practices: 1 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. 2 Put lubricant in prior to drill out of intermediate shoe. 3 -5% LoTorq is normally required, possibly more depending on solids in the mud. Maintain a minimum of 3% throughout the hole section. 12/1/2008 Page 8 of 18 • • Beaver Creek 18 Marathon Oil Company Drilling Program Alaska Comments: Due to anticipated losses in the Sterling and Upper Beluga, both calcium carbonate and fibrous material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. Production: Drill 8 1/2" hole to +/- 9,244' set 3 -1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 12 ppg. Estimated Leak Off EMW is 15 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 9,244' MD (8,679' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole Togs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and lay down BHA and drill pipe. Pull wear bushing. 7. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 8. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. 9. PU 3 1/2" casing. PU BOP stack. Make control line and electric line connections to tubing bonnet assembly. Set slips. Cut 3 1/2" casing. 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/16" 10M tubing head adapter and 3 1/16" 10M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 2 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. This is important when waiting on log analysis to give EXCAPE module placement points. 3 Put lubricant in prior to drill out of intermediate shoe. 5% LoTorq is normally required, possibly more depending on solids in the mud. Comments: Completion: Completion will be done without a rig. This will include activating the EXCAPE perforating modules via hydraulic pressure on the control lines and fracture stimulation of targeted zones. Wellbore clean out will likely include slickline and possibly nitrogen jetting with coiled tubing. Best Practices: 1 Comments: 12/1/2008 Page 9 of 18 . 0 Beaver Creek 18 Marathon Oil Company Drilling Program Alaska 4.7 Casing Program Summary MD (ft) Connection API Ratings Casing Makeup Hole 7, .. a ^. g Size Weight ID Drift O. D. Torque Size m °- v S ) Y (in) Top Bottom (Ibs/ft) (in) (in) Grade Type (in) (ft -Ibs) (in) 13 3/8 0 2,100 68 12.415 12.259 K -55 BTC 14.375 N/A * 16 3,450 1,950 1,300 9 5/8 0 7,594 40 8.835 8.679 L -80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 31/2 0 9,244 9.3 2.992 2.867 L -80 8rd 4.5 3,200 81/2 10,160 10,530 207 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 * - Make up buttress connection to proper mark, not to a torque value. Comments: i. ALL CASING WILL BE NEW CASING. ii. OVERPULL above string weight, during casing running and cementing for the 3 1/2" string, must be limited to 90,000 Ibs. iii. FINAL TOTAL STRING WEIGHT to be set on the slips for the 3 1/2" casing string should not exceed 100,000 Ibs after WOC. A final value will be determined by the completions engineer and specified later. 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum a) c Casing Depth Mud Wt Frac. Form Surface fl o c Size Weight TVD When Set Grad Press Pressure as m U o (in) (lb/ft) Grade (ft) (lb/gal) (lb/gal) (lb/gal) (psi) 13 3/8 68 K -55 2,051 9.5 12.0 8.5 1,075 2.13 1.93 2.91 9 5/8 40 L -80 7,029 9.6 14.0 8.0 2,334 1.31 1.03` 2.42 31/2 9.3 L -80 8,679 9.6 15.0 9.4 2,334 1.16 2.44 1.30 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** Mud /Gas (in) (ft) (psi) (psi) Percentage 13 3/8 2,051 2,276 1,075 30/70 9 5/8 7,029 4,025 2,334 30/70 3 1/2 8,679 7,112 2,334 30/70 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure 12/1/2008 Page 10 of 18 0 • Beaver Creek 18 Marathon Oil Company Drilling Program Alaska The calculation method for MASPBHP has been modified from the standard AOGCC use of a Bottom Hole Pressure — 0.1 psi /ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure — 30% Mud Column — 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a welibore being completely evacuated with only a gas gradient remaining. Surface casing: 13 3/8" (2,100' MD, 2,051' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (12.0 ppg x .052 x 2,051') - (0.1 psi /ft x 2,051') MASPfrac = 1,280 psi - 205 psi MASPfrac = 1 ,075 psi. MASPbhP = BHPopen hole td — Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (8.0 ppg x .052 x 7,029') — (0.3 x 9.6 ppg x .052 x 7,029') — (0.7 x 0.1 psi /ft x 7,029') MASPbhP = 2,924 psi — 1,053 psi — 492 psi MASPbhP = 1,379 psi MASP = MASPfrac = 1,075 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 3,450) — (9.6 — 8.3) x .052 x 2,051' MAWP = 2,415 psi —139 psi = 2,276 psi Intermediate casing: 9 5/8" (7,594' MD, 7,029' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (14.0 ppg x .052 x 7,029') - (0.1 psi /ft x 7,029') MASPfrac = 5,117 psi - 703 psi MASPfrac = 4,414 psi. MASPbhp = BHPopen hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhP = (9.4 ppg x .052 x 8,679') — (0.3 x 9.6 ppg x .052 x 8,679') — (0.7 x 0.1 psi /ft x 8,679') MASPbhP = 4,242 psi — 1,300 psi — 608 psi MASPbhp = 2,334 psi MASP = MASPbh = 2,334 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (9.6 — 9.6) x .052 x 7,029' MAWP = 4,025 psi — 0 psi = 4,025 psi Production casing: 3 1/2" (9,244' MD, 8,679' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 8,679') - (0.1 psi /ft x 8,679') MASPfrac = 6,770 psi - 868 psi MASPfrac = 5,902 psi. MASPbh = BHPopen hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhP = (9.4 ppg x .052 x 8,679') — (0.3 x 9.6 ppg x .052 x 8,679') — (0.7 x 0.1 psi /ft x 8,679') MASPbhP = 4,242 psi — 1,300 psi — 608 psi MASPbhP = 2,334 psi 12/1/2008 Page 11 of 18 1 1110 Beaver Creek 18 Marathon Oil Company Drilling Program Alaska MASP = MASPbhP = 2,334 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) — (9.6 — 9.6) x .052 x 8,679' MAWP = 7,112 psi — 0 psi = 7,112 psi Best Practices: 1 Comments: 4.10 Casing Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back -up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS Low /High Casing (in) (psi) (psi) (psi) (lb /gal) Size & Rating (psi) (1) 13 -5/8" 5M annular Surface 13 3/8 2,276 1,075 1,500 9.5 (1) 13-5/8" 5M pipe ram 250/2, (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets / � (( 30 (1) 13 -5/8" 5M annular f `"' (1) 13 -5/8" 5M pipe ram 111 Intermediate 9 5/8 4,025 2,334 1,700 9.6 250/20 (1)135 /8 "5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M annular Production 3 1/2 7,112 2,334 2,100 g 6 (1) 13-5/8" 5M pipe ram 250/2,5 (1) 13 5/8" 5M blind ram �,�;\ (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets lJ� Blowout Preventers The blowout preventer stack will consist of a 13 -5/8" x 5000 psi annular preventer, a 13 -5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13 -5/8" x 5000 psi drilling spool (mud cross) with 3 -1/8" x 5000 psi outlets. The choke manifold will be rated 3 -1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor -boy gas buster, and a vacuum -type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 12/1/2008 Page 12 of 18 • Beaver Creek 18 Marathon Oil Company Drilling Program Alaska 4.11.1. Function Testing Function Regularly. 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type 13 5/8" x 9 5/8" Fluted Casing Head 13 -5/8" 3M X 13 -3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 Mandrel 13 -5/8" 3M Studded Bottom X 13 -5/8" 5M Flg Top, W/ 2, 2- 1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual Tubing Head U,AA,PSLI,PR1 Slip Adapter Flange 13 -5/8" 5M X 3- 1/16" 10M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Program Summary Build Turn Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +NI -S +E / -W VS No. Description (ft) (ft) ( °/100') ( °/100') ( °/100') (deg) (deg) (ft) (ft) (ft) 1 Tie On 0 0 0 0 0 0 20.000 0 0 0 2 KOP 1,000.00 1,000.00 0 0 0 0 20.000 0 0 0 3 Build up Section 3.00 0 3.00 20.000 4 End of Build 1,633.33 1,621.79 3.00 0 3.00 19.000 20.000 97.78 35.59 94.83 5 Build & Turn 2.26 4.45 3.00 6 End of Build/Turn 2,061.50 2,016.45 2.26 4.45 3.00 27.099 46.037 231.53 130.02 256.51 7 Hold Section 0 0 0 27.099 46.037 8 End of Hold 6,338.60 5,824.01 0 0 0 27.099 46.037 1,584.05 1,532.41 2,203.95 9 Drop Section -2.00 0 2.00 46.037 10 End of Drop 7,693.54 7,129.00 -2.00 0 2.00 0 46.037 1,802.36 1,758.78 2,518.29 11 TD 9,243.54 8,679.00 0 0 0 0 46.037 1,802.36 1,758.78 2,518.29 12/1/2008 Page 13 of 18 Beaver Creek 18 Marathon Oil Company 0 0 Drilling Program Alaska 0— - 1000 t + BC 18 LB 23 133/8" { BC 18 LB 16 "a1 2000- 2000— - -----' `4101 3000 i BC18LB28 I 8 BC18TD 4000 1 I N + i000 ,) 13 5000— Z r 36000 f -- v 2 95/8" - - BC18LB16 ,1 k, 4_ o— 7000 - 18LB23_ _ BC _ I 8000— - r - I - BC 18 LB 28 L _ 3 1/2 - BC 18 TD I a I,. I 1 I iiii m i m iiiii ii i 1 1 1 1 i i i i i i i -2000 -1000 0 1000 2000 3000 4000 5000 0 1000 2000 Vertical Section at 44.30° (2500 ft/in) West( -) /East( +) (1000 ft /in) Comments: Vertical section calculated from a reference azimuth of 44.30° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) BC 3 79.44 2,075 BC 10 91.13 945 BC 19 140.06 1,000 BC 9 147.03 Surface BC 11 162.43 Surface BC 6 177.96 100 BC 5 194.40 500 BC 16/BC 16RD 218.80 Surface BC 13 287.94 896 No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Surveying Summary Interval MD (ft) - MWD Survey Magnetic Multishot Gyro Multishot Other Survey Remarks Tool Surface 0- 2,100' X Intermediate 2,100' — 7,594' X Production 7,594' — 9,244' X 12/1/2008 Page 14 of 18 Beaver Creek 18 Marathon Oil Company Drilling Program Alaska Best Practices: 1 Comments: 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (lb/gal) Fluid Description Additives Viscosifier Barite 0 2,051 8.6 — 9.2 Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL 2,051 7,029 9.0 — 9.5 6% Flo -Pro NT w/ Safecarb Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb, Lo Torq, GSeal, KlaGard, Congor 404 7,029 8,679 9.0 — 9.4 6% Flo -Pro NT w/ Safecarb Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb F, Lo Torq, SafeCarb, Caustic, Conqor 404 Best Practices: 1 Because the production zone will be fracture stimulated, the mud system from the intermediate section will be re -used for the production hole after cleanup through the on -site centrifuge. Comments: 4.16 Drilling Fluid Specifications Interval — TVD LSRV Drill From To Density Vis 1 min PV YP Fluid Loss Solids (ft) (ft) (lb/gal) (sec/qt) (Ib. /100ft (cP) (lb /100 ft (cc) pH ( %) 0 2,051 8.6 — 9.2 60 - 100 N/A 25 - 35 NC - 12 +/- 9.5 < 7 2,051 7,029 9.0 — 9.5 30,000 + 8 - 12 7 — 9 +/- 9.5 +/- 5 7,029 8,679 9.0 — 9.4 30,000 + 10 - 14 < 6 +/- 9.5 +/- 5 Best Practices: 1 As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 3 1/2" production casing will be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to control leakoff. 12/1/2008 Page 15 of 18 Beaver Creek 18 Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment o y m :g 20 N m C V a z N N N Y U 00 to N 7 C Y.+ E 2 Interval o V V V 0) Comments 0 — 9,244' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Equipment Specifications Item (quantity, 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 2 — MI /Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G &I Facility Zero Discharge N/A Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: 12/1/2008 Page 16 of 18 1 • Beaver Creek 18 Marathon Oil Company Drilling Program Alaska 4.18 Cement Program Summary Depth Gauge Top of Cement Gauge Ann Vol Slurry Casing Hole Ann Vol With OH Density Open Hole Thickening Size MD TVD Size MD TVD To TOC Excess Lead/Tail Excess Time (in) (ft) (ft) (in) (ft) (ft) (ft (ft (PP9) (%) (hrs) 20 101 101 Driven N/A 13 3/8 2,100 2,051 16 0 0 841 1,633 12.0 75 8 9 5/8 7,594 7,029 12 1/4 4,900 4,543 843 1,215 10.5 / 15.8 40 8 31/2 9,244 8,679 81/2 7,000 6,442 753 973 15.8 40 N/A Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (Psi) (in) Slurry Cement Description (lb/gal) (sx) (ft /sx) (ft (ft) (gal /sx) Type (cc) ( %) 8 hr 24 hr 13 3/8 Tail Type I Cement 12.0 651 2.51 1,633 0 11.28 Fresh 812 0 196 818 Lead Class "G" 10.5 290 3.32 962 4,900 12.61 Fresh 9 5/8 Tail Class "G" 15.8 216 1.17 253 7,094 4.97 Fresh 24 0 226 2,632 3 1/2 Tail Class "G" 15.8 832 1.17 973 7,000 4.97 Fresh 24 0 226 2,632 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: 1. Volume calculations assume 40' internal cement shoe track for the stab -in surface shoe and 80' of internal cement for the remaining shoe tracks. See cement prognosis for details and spacer specifications. 2. Centralizers for the casing strings will include at least 1 per joint on the bottom 3 joints as per BLM regulations. 4.19 Bit Summary Interval — MD Type Recommended Estimated Expected From To Size WOB Rotating Minimum ROP (ft) (ft) (in) Manufacturer Model No. IADC (kips) RPM Hours (ft/hr) 0 2,100 16 Christensen MX -1 115 27.5 - 65 Motor 2,100 7,594 12 1/4 Christensen HCM 506Z M323 Up to 52 Motor 7,594 9,244 8 1/2 Christensen HCM 506Z M323 Up to 29 Motor Best Practices: 1 Comments: See bit prognosis for additional information. It is anticipated that we will encounter a conglomerate section in the last 800' of the intermediate section. In work prior to 2007 our PDC bits would not drill this entire section, but recent drilling at Sterling Unit, BC 16RD, and BC 19 indicates that it is possible to drill the entire section with PDC bits. If a second bit is necessary for the 12'/4" hole an MX -18DX (IADC 447) should be used to finish this section. Back up bits for the 8 %2" hole section will consist of an MXL -18DX (IADC 447) bit. 12/1/2008 Page 17 of 18 1 • Beaver Creek 18 Marathon Oil Company Drilling Program Alaska 4.20 Hydraulics Summary Max Press @ Displacement @ Max Rate @ Liner ID Stroke 90% WP 95% Vol. eff 95% Vol. eff Hole Sections Used Qty Make Model (in) (in) (psi) (gal /stroke) (spm /gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle Depth -MD Size Rate Pressure Min AV MW ECD Size AP b at bit (ft) (in) (gpm) (psi) (fpm) _ (ppg) (ppg) (32 "s) (psi) Remarks (Drill string configuration) 0 — 2,100' 16 650+ 1,400 69 9.3 2 — 18's Actual Data KBU 24 -7X (@ 1,636' MD) 1 -16 2,100' — 7,594' 12 1/4 600 1,559 118 9.4 9.63 6 — 13's MI Virtual Hydraulics (@ 7,594' MD) 7,594' — 9,244' 8 1/2 400 1,438 207 9.2 9.52 5 — 15's MI Virtual Hydraulics (@ 9,244' MD) Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. Comments: See separate hydraulics calculations. Annular velocities in the 16 ", 12'A ", and 8'/2" holes were calculated using 5" drillpipe. 4.21 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to an FIT instead of Leak -off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak -off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut -in for 10 minutes or until the shut -in pressure stabilizes. FIT tests are to be conducted the same as described by the LOT test above, except in step 4, where the pumping would stop at the specified pressure to achieve an FIT required. Note that leakoff is always possible, prior to the specified FIT, due to formation variations. Best Practices: 1 Comments: 12/1/2008 Page 18 of 18 • • Marathon Oil Well BC 18 Diverter Flow line 21 1/4" 2M Diverter 16" Automatic Knife Valve / Diverter Spool 1 1 M I I - 16" Diverter Line • • Marathon Oil Well BC 18 BOP Stack Flow Nipple Flow Line 13 5/8" 5M Annular Preventer 13 5/8" 5M Double Ram Preventer . Pipe Ram 2 1/16" 5M . Blind Ram - Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves Operated Valve X X _ 1112lim 1I ©1 X 1 _ Ch o ke I I[ ]I 13 5/8" 5M Cross 3 Hydraulically Operated Valve 13 5/8" 5M x 13 5/8" 5M Drilling Spool Bottom of mud cross must be 24 -45" from ground level for Glacier 1 rig placement. 13 5/8" 5M Tubing Head Flange • • Marathon Oil Well BC 18 Choke Manifold To Gas Buster To Blooey Line Bleed off Line to Shakers ■ ■ - PAL PAL N u u glir ‘11117 e - - 1 I I I / I I / l 000 0 — 0 0 0 '- 0 0 Q 0 8 00,45 0 d' 00 0 0 ' I I , I I 1 I I I It � I I � I I I I I I 1 I 1 - - �1 �1 ® I t I Vlir u - u PAh III I Wir ' 1 0 momii - _ L I - - 1 II�©_ CI ©__III©__ 1 \ 7 3" 5M Valves Wir t I li. 1 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 r .xa + „a heirawiralf M lit a 10Mtlte Ai.uurnul it Ilfle ur Rwrrk � Manifold Bleeder Valve 8 ( Vafwr Revising sl PP Mtn pl4MMf_NM Annular Preestue ` n "� '' ' Vw ' 1 and gips ylllws. M ��p. O.30W pen V fl 144* Hydra itttiptaehu **stelae Pon manually 04600 psi normally around 1000 " Annuls aputitot � 1111 i ;r ° f r ' r Y Vdet^ 11 y� l lo 04000 sure Poconsiotot oiNI 8 apnNANOn ^^• "AI I ) . s Os ) position For alpe+Nbns over i 1500pet. move to high around 3000 = 1 j I preirowMnght) positron • 0-6000 i A A AL J i. Ak at. A. i A ,�c, ! Manifold Pressure I _... I� • iii ) (Huge- i hOO psi ' I �y namkally t5U0 C",.;., Woven tarMWwi Valve , 0 0 „ a High Pressure W. r ;F C:' • Cite i \ -� Pt 00, Screen ` e1(° t lec:lrrc. Premium !ivMi,h ' !! Ardumeaacay Mops Ixmtpve sSn they reach E.:7,M , 1000 psi ■nd studs when °.... the piwttltrre Mops to r i .1100 Ell C ,, Man Air to .Wier w . �.� . .:.. -- _ _____.- - - - ---- _ � .{ .. ._ .. „: t., fOO 11 Explosion Proof ElecWIC Motor C • — Air . n Macon Relit Valve t A SAE 1 set CNP'-set at 320�5� - at 6 drops r ;ti S , i ■ min Check z y . weekly. • • Belt Guard Triplex Galley Isolation Air Pressure Switch • Electric Valve for Drain Valve II Air Pumps - Bypass- Normally dosed. Motor Triplex but open with pressures Switch- Pump- 60.1 Rata T notes Pump- 1 above 3000 ps Check oil level Kepp in Normalcy IjSuction Strainer f7 monthy Fill auto open, For Air Pumps uu with 1Ow 40 position close for Suction Valve For Turn off pressure Air operated when { exceeding Pumps- reamians U servicing 3000 PSI open close during fT ei servicng L Suction strainer for Tiplex pump clean every 30 days it • • Surface Use Plan for Beaver Creek 18 Surface Location: 1,055' FNL, 1628' FWL, Sec. 34, T7N, R10W, S.M. a. Existing Roads Existing roads which will be used for access to BC 18 are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the topographic map. 1. Marathon owns the existing road and will maintain the road in a proper manner before, during, and after drilling operations. Plans for maintaining the road would include grating and adding road materials to maintain road grade. This is an unpaved road. 2. Marathon will not use any roads under Forest Service jurisdiction. b. New or Reconstructed Access Roads No new roads will be required to access BC 18. c. Location of Existing Wells Well BC 18 will be drilled on Beaver Creek pad 3. A signed surveyor as -built drawing is enclosed that shows existing wells and the location of BC 18. d. Location of Existing and /or Proposed Production Facilities The locations of existing production facilities in the Beaver Creek pad 3 are shown on the signed surveyors as -built drawing. A flowline will be installed from the BC 18 wellhead to the existing production facilities. e. Location and Types of Water Supply A water supply well exists on the pad that BC 18 will be drilled from. This is shown on the as -built drawing. Marathon has a Temporary Use Water Permit (A2007 -89) from the Alaska Department of Natural Resources. The well is approved for potable use a Class C water system by the Alaska Department of Environmental Conservation. f. Construction Materials No major construction is planned on the pad at this time. Leveling of the pad for this work will be done with minimal materials needed. No new dikes or ditches will be constructed. No additional road material will be brought on the pad. There are no topsoil or material stockpiles on the pad. g. Methods of Handling Waste; 1. Mud and Cuttings Cuttings will be dewatered on location. The drilling waste and fluids will be hauled via vacuum truck to Pad 41 -18 of the Kenai Gas Field for disposal into a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81 -176). Marathon obtains a temporary waste storage approval from the ADEC for temporary onsite storage. 2. Solid Waste All household and approved non - hazardous solid waste will be hauled to the Kenai Peninsula Borough Soldotna Landfill. Oily materials (rags and /or plastic liner) are • • disposed by a third party. 3. Completion Fluids Clear fluids will be injected into approved disposal wells Beaver Creek # 2 (Alaska Oil and Gas Conservation Commission Disposal Injection Order No. 4) or hauled to Pad 34- 31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7 -194). 4. Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. 5. Sewage There is no discharge onsite and all waste water will be hauled to the Kenai sanitation facility by a qualified 3rd party. h. Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately five mobile trailer house type structures will be utilized for this purpose. No camps, airstrips, or staging areas will be constructed. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. A qualified 3 party will collect and transport sanitary wastes to their ADEC approved disposal facility. No additional structures will be necessary. i. Well Site Layout Please see the attached plats identifying the pad and the location of drilling rig over BC 18, with the approximately planned orientation. The Glacier rig utilizes a closed loop system, no earthen pits are utilized. All fluids are contained in steel tanks as part of the rig package. j. Plans for Surface Reclamation BC 18 will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of BC 18 and the other existing wells on the pad, and will be restored to the satisfaction of the the surface owners and the U.S. Bureau of Land Management. k. Surface ownership The surface owner of the land in the Beaver Creek Unit is the U.S. Fish and Wildlife Service. The minerals are under the jurisdiction of the U.S. Bureau of Land Management. A copy of the surface use plan has been provided to the surface owner, as required. I. Other Information 1. Marathon's Glacier drilling rig has multiple containment features including a timber -diked plastic liner laid on top of the drilling pad. Each rig component sitting on top of the plastic liner has it's own containment system. 2. All rig operations are preceded by a pre -job safety meeting. Marathon acknowledges that all personnel, contract or Marathon employee, can stop the job if there is a safety or environmental concern. • • Operator Certification Field: Beaver Creek Well: Beaver Creek, BC 18 Surface Location: 1,055' FNL, 1,628' FWL, Section 34, Township 7N, Range 10W, SM AK I hereby certify that I, or someone under my direct supervision, have inspected the drill site and access route proposed herein; that I am familiar with the conditions which currently exist; that I have full knowledge of state and Federal laws applicable to this operation; that the statements made in this APD package are, to the best of my knowledge, true and correct; and that the work associated with the operations proposed herein will be performed in conformity with this APD package and the terms and conditions under which it is approved. I also certify that I, or the company I represent, am responsible for the operations conducted under this application. These statements are subject to the provisions of 18 U.S.C. 1001 for the filing of false statements. Executed this 28 day of November , 20 08 Name Willard J. Tank JA/dX,4Az Position Title Advanced Senior Drilling Engineer Address P.O. Box 3128, Houston, TX 77253 -3128 Telephone 713 - 296 -3273 Field Representative Pete Berga (Drilling Superintendent) (if not above signature) Address 3201 C Street, Suite 800, Anchorage, Alaska 99503 (if different from above) Telephone 907 - 565 -3032 (if different from above) E -mail witankmarathonoil.com (optional) • • 2827 33 34 N 2435216.8424 SECTION LINE NOT TO SCALE - _ E 315828.9694 -...L, AMMO= MENNIIIIMIL SECTION 34 T7N R1OW SM, AK N OR TH BE. __ ---- ELE V 1,13 36' .fit • 1,_ W00014005 i \ Z J \` LO O \ • • � EDGE OF GRAVEL PAD `` J •• • • • • !WOE PERIMETER J / �\\ !WOE ERI TER CONCRETE PAD B.G.U. NO. 18 6.0' X 7.0• / AS -BUILT 1628' FWL METAL BUILDING N:2434136.985 J 1 55•5425 E:317441.965 BC 10 BC_.U. NO. 10 ELEV: 161 21• U swq.BwO LAT:60 °3911.686W Q , __ ANTENNA ©N:il1N09T1 LONG: 151°01'03.316"W ` 0 1 B c.11 NO 11 ELEV E: 01]360] NIL z NAD27 ASP Zone 4 O WE LL HOUSE DA WO F- 120' X 12. ® 19009.90 ELEV: 159.9' / F [:31]299 w O ABOVE GROUND ELEV: 100.5' NAVD88 Z CONDUITRACXS 1628' FWL Z .i BC U_N0.6 / Z Nxas23.2 1055' •FNL I C.U. .. NOG 5 002 SEG 02 J N 61 O ��• LINE 11 TER ELEV: WET TER E ]1riJ.R // �// ELEV IBOA' ® j PIPE GUARD ,,'�L O B.CU N0 IA I /( / METER BO% F :. - •'II B.S cm No B'Dq WELLCELLAR(NAY U �-- ACCESS ROAD TO PAD 9 . pA 91L0 BEAVER CREEK UNR PAD 3 " LU � --" CONCRETE PAD WITH CONTROL PANEL 1 x911wL E:E:3 ,....7 E 11)112.59 . 2.59 ELEV: EPS • / RADIO ANTENNA AND ELEV:1001' s J CONTROL PANEL OBGU NO J / WELL HOUSE SITE EMERGENCY SHUT /I N:x90a959A5 DOWN SWITCH Ely E'.0 0 • ELEV. 109.9 CONOTX E PAD 23.0'64 / \ B.C.0 NO. fu �O / i'-: /\�� PRODUCED O 6 v912 Iw No. O TFAH � ' FLUIDS E.E.. 1eo9 0.2' X 25.5' BUILDING 2]D' %250' BC.U. NO. IJ No. 9 Ti'Ak B [BA. eR0 92'%255' 1;T NIL. 9 LINE ON ' # 1QI• ./ "EATER E: 11)2001] '�06' %1.1' • 100 ELEV 102X X ,12.0' .,./ 32.0' 3' T•PAH— ' PRODUCED , 909255' •1 / ^/ FLU106 TANK / / , �• 1 'C LINED • U CONTAINMENT AREA / RETENTION BASIN ` . BUILDING ` BUILDING 1100 %26.9' • 10.0 %269' / .. GiFAN 00 //�/ �] TOP OF PERINEIER RN NTRM POLNT' .. • 10' 7 j J /� / CLwrAIMENT BERM ELEV: IGS58' ` • 2 BUILOING 6�� ! / V / / / / / // ∎0'%26A' \ 100'X20.9' \� � VAULT EDGE OF GRAVEL PAD ` _ BASIS OF GEODETIC CONTROL WERE DETERMINED FROM „ NERAIGR � ` �� r F A/ 4 t A DIECT TIE TO U.S.C. &G.S. STATION AUDRY HAVING A It NAD27 PUBLISHED VALUE OF BUILDING ' �, LATITUDE: 60630'50.559 "N 10,10.7 OS/ �. .► ' LONGITUDE: 151616'37.445'W. FOUNDATION 280' * : 49 T H A\ - ALASKA STATE PLANE COORDINATES (ASP) ZONE 4 NAD 27 0.0 0° N= 2,382,045.42 • % "AS I C,,,,...... E=269,866.75 '' M. SCOTT McLANE. f _ BASIS OF VERTICAL CONTROL IS NGS BM D81 LOCATED IN THE KENAI SPUR HIGHWAY RIGHT OF WAY DOWNTOWN � / Ln� • 4928 —S KENAI HAVING AN ELEVATION OF 84.11 FEET NAVD 88 I `' • 1 ' x /2... e •: ACCORDING TO NGS PUBLISHED DATA. SCALE / 1 I ` ESS I Olga ` - 0 100 200 1 ■ 1] \\ \N 4 FEET 1 MARATHON DATE: REVISION: - MGM COMPANY FOR INFORMATIONAL PURPOSES ONLY DATE: ,,. Off, BCU 18 WELL ON BCU PAD 3 DRAWN BY: UM WiI1H ALMA AS -BUILT SURFACE LOCATION DIAGRAM SCALE + =10D NAD27 PROJECT NO. 083112 ENGINEERING /MAPPING /SURVEYING /TESTING BOOK No. � , Cartwth69 Inc 08 P.O. BOX 486 SOLDGTNA, AK 90869 LOCATION SHEET ",r VOICE: (90"283•`218 FAX: (907)283a285 EMAIL: SAMCLANEQMCLANECG.COM S34 T7N R10W SEWARD MERIDIAN, ALASKA 1 1 • 0 • 151 °16.000' W 151 °13.000' W 151 °10.000' W 151 °07.000' W 151 °04.000' W WGS84 151 0 00.000' W - . {- _ 1 { 5 11 i5. _ - ,'“ • 1 1 m z t': . ' ,� ' , h 0 -• 0 30 • - �� 4 a 29 ■ 4,„ \ : 28 \ j r 27\ ' V . 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PIT 4 MAR‘THON Oil Corpany BAR HUGHES MARATHON Location: Cook Inlet, Alaska (Kenai Penninsula) INTEQ Field: Beaver Creek Unit (NAD83) Well: BC -18 Facility: Pad #3 Wellbore: BC -18 Plot reference wellpath is BC -18 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #3): 0 feet Depths are in feet -soo — / Coordinates are in feet referenced to Slot Created by: jonethoh on 24- Nov -08 Easting (ft) Scale 1 inch = 500 ft i 1 -250 0 250 500 750 1000 1250 1500 1750 2000 _ 0 2000 RKB 179' 1 1 1 1 1 1 1 1 1 3 1/2" Casing Production BC -18 9 5/8" Casing Intermediate 600 — BC -18 TD (NAD83) 24- Oct -08 — 1750 BC -18 Lower Beluga 28 (NAD83) 24- Oct -08 BC -18 Lower Beluga 23 (NAD83) 24- Oct -08 KOP BC -18 Lower Beluga 16 (NAD83) 24- Oct -08 1200 — — 1500 3.00 ° /100ft Begin Turn to Tgt 1800 — — 1250 13 3/8" Casing Surface End of Curve 2400 — — 1000 p S 3 3000 — — 750 5' 3600 — — 500 L fl. 0 4200 250 �A• 13 3/8" Casing Surface 4800 0 SlOt #18 0) 3 L L r 5400 — - -250 Begin Angle Drop 6000 — 2.00°/1 00ft 6600 — 7200 — BC -18 Lower Beluga 16 (NAD83) 24-Oct-08 9 5/8" Casing Intermediate BC -18 Lower Beluga 23 (NAD83) 24- Oct -08 7800 — BC -18 Lower Beluga 28 (NAD83) 24- Oct -08 8400 — BC -18 TD (NAD83) 24- Oct -08' 3 1/2" Casing Production 9000 — m 9600 — 1 1 1 1 1 1 1 -600 0 600 1200 1800 2400 3000 3600 Vertical Section (ft) Scale 1 inch = 1200 ft Azimuth 44.30° with reference 0.00 N, 0.00 E i • EMI MARATHON Oil Company BAKER HUGHES MARATHON Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #18 INTEQ Field: Beaver Creek Unit (NAD83) Well: BC -18 Facility: Pad #3 Wellbore: BC -18 Plot reference wellpath is BC -18 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 24- Nov -08 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Pad #3 1455856.600 2434969.102 60°39'39.921"N 151°01'43.901"W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude slot #18 - 1054.72 1630.04 1457469.824 2433889.066 60 °39'29.533 "N 151°01'11.195"W Glacier #1 (RKB) to Mud line (Facility: Pad #3) 179ft Mean Sea Level to Mud line (Facility: Pad #3) Oft Glacier #1 (RKB) to Mean Sea Level 179ft Targets Name MD (ft) TVD (ft) Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude BC - Lower Beluga 16 (NAD83) 24 - Oct - 7693.54 7129.00 1802.36 1758.78 1459256.24 2435663.81 60 °39'47.281 "N 151 °00'35.901 "W BC - Lower Beluga 23 (NAD83) 24 - Oct - 8228.54 7664.00 1802.36 1758.78 1459256.24 2435663.81 60 °39'47.281 "N 151 °00'35.901 "W BC - Lower Beluga 28 (NAD83) 24 - Oct - 8723.54 8159.00 1802.36 1758.78 1459256.24 2435663.81 60 °39'47.281 "N 151 °00'35.901 "W BC - TD (NAD83) 24 - Oct - 9243.54 8679.00 1802.36 1758.78 1459256.24 2435663.81 60 °39'47.281 "N 151 °00'35.901 "W Hole and Casing Sections Start End Start End Start Start End End Name MD (ft) MD (ft) Interval (ft) TVD (ft) TVD (ft) Local N (ft) Local E (ft) Local N (ft) Local E (ft) Wellbore 16" Open Hole 0.00 2100.00 2100.00 0.00 2050.72 0.00 0.00 243.71 142.64 BC -18 13 3/8" Casing Surface 0.00 2100.00 2100.00 0.00 2050.72 0.00 0.00 243.71 142.64 BC -18 12 1/4" Open Hole 2100.00 7593.52 5493.52 2050.72 7029.00 243.71 142.64 1801.15 1757.52 BC -18 9 5/8" Casing Intermediate 0.00 7593.52 7593.52 0.00 7029.00 0.00 0.00 1801.15 1757.52 BC -18 8 1/2" Open Hole 7593.52 9243.54 1650.02 7029.00 8679.00 1801.15 1757.52 1802.36 1758.78 BC -18 3 1/2" Casing Production 0.00 9243.54 9243.54 0.00 8679.00 0.00 0.00 1802.36 1758.78 BC -18 Well Profile Data Design Comment MD (ft) Inc ( °) Az ( °) TVD (ft) Local N (ft) Local E (ft) DLS ( °/100ft) VS (ft) RKB 179' 0.00 0.000 20.000 0.00 0.00 0.00 0.00 0.00 KOP 1000.00 0.000 20.000 1000.00 0.00 0.00 0.00 0.00 Begin Turn to Tgt 1633.33 19.000 20.000 1621.79 97.78 35.59 3.00 94.83 End of Curve 2061.50 27.099 46.037 2016.45 231.53 130.02 3.00 256.51 Begin Angle Drop 6338.60 27.099 46.037 5824.01 1584.05 1532.41 0.00 2203.95 Lower Beluga 16 / EOD 7693.54 0.000 325.421 7129.00 1802.36 1758.78 2.00 2518.29 Lower Beluga 23 8228.54 0.000 325.421 7664.00 1802.36 1758.78 0.00 2518.29 Lower Beluga 28 8723.54 0.001 325.421 8159.00 1802.36 1758.78 0.00 2518.30 TD 9243.54 0.002 145.421 8679.00 1802.36 1758.78 0.00 2518.29 Planned Wellpath Geographic Report Report Generated 24- Nov -08 at 07:55:27 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999938 Field Beaver Creek Unit (NAD83) Horizontal Reference Point Slot Facility Pad #3 Vertical Reference Point Glacier #1 (RKB) Slot slot #18 MD Reference Point Glacier #1 (RKB) Well BC-16 Field Vertical Reference Mean Sea Level Wellbore BC-18 Glacier #1 (RKB) to Facility Vertical Datum 179.00 ft Wellpath BC-18 Version #3 Glacier #1 (RKB) to Mean Sea Level 179.00 ft Wellbore Last Revised 07/03/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 44.30° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft) Slot Location - 1054.72 1630.04 1457469.82 2433889.07 60 °3929.533 "N 151 °01'11.195"W Facility Reference Pt 1455856.60 2434969.10 60 °3939.921 "N 151°01'43.901'W Field Reference Pt 1455856.60 2434969.10 60 °39'39.921 "N 151°01'43.901'W ' NAD 83 coordinates are converted to NAD 27 using Corpscon 6.0.1 (US Army Corps of Engineers) TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] E] [°] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ft] [ft] [ [°] [°/100ft] [°/100ft] [ft] 0.00 0.00 20.00 0.00 - 179.00 0.00 0.00 1457469.82 2433889.07 317448.653 2434128.179 60 °39'29.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 100.00 0.00 20.00 100.00 -79.00 0.00 0.00 1457469.82 2433889.07 317448 .653 2434128.179 60 °3929.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 200.00 0.00 20.00 200.00 21.00 0.00 0.00 1457469.82 2433889.07 317448.663 2434128.179 60 °3929.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 300.00 0.00 20.00 300.00 121.00 0.00 0.00 1457469.82 2433889.07 317448.653 2434128.179 60 °39'29.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 400.00 0.00 20.00 400.00 221.00 0.00 0.00 1457469.82 2433889.07 317448.653 2434128.179 60 °39'29.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 500.00 0.00 20.00 500.00 321.00 0.00 0.00 1457469.82 2433889.07 317448.653 2434128.179 60 °3929.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 600.00 0.00 20.00 600.00 421.00 0.00 0.00 1457469.82 2433889.07 317448.653 2434128.179 60 °3929.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 700.00 0.00 20.00 700.00 521.00 0.00 0.00 1457469.82 2433889.07 317448.653 2434128.179 60 °39'29.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 800.00 0.00 20.00 800.00 621.00 0.00 0.00 1457469.82 2433889.07 317448.653 2434128.179 60 °39'29.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 900.00 0.00 20.00 900.00 721.00 0.00 0.00 1457469.82 2433889.07 317448.653 2434128.179 60 °39'29.533 "N 151 °01'11.195" 0.00 0.00 0.00 0.00 0.00 1000.00 0.00 20.00 1000.00 821.00 0.00 0.00 1457469.82 2433889.07 317448.663 2434128.179 60 °3929.533"N 151 °01'11.195" 0.00 20.00 0.00 0.00 0.00 1100.00 3.00 20.00 1099.95 920.95 2.46 0.90 1457470.76 2433891.51 317449.593 2434130.619 60 °39'29.557 "N 151 °01'11.177" 3.00 0.00 3.00 0.00 2.39 1200.00 6.00 20.00 1199.63 1020.63 9.83 3.58 1457473.55 2433898.84 317452.383 2434137.949 60 °3929.630 'N 151 °01'11.123' 3.00 0.00 3.00 0.00 9.54 1300.00 9.00 20.00 1298.77 1119.77 22.10 8.04 1457478.21 2433911.03 317457.043 2434150.14 60 °39'29.751 "N 151 °01'11.034" 3.00 0.00 3.00 0.00 21.43 1400.00 12.00 20.00 1397.08 1218.08 39.22 14.27 1457484.70 2433928.06 317463.532 2434167.17 60 °39'29.919 "N 151 °01'10.909" 3.00 0.00 3.00 0.00 38.04 1500.00 15.00 20.00 1494.31 1315.31 61.15 22.26 1457493.03 2433949.86 317471.862 2434186.97 60 °39'30.135 "N 151 °01'10.749' 3.00 0.00 3.00 0.00 59.31 1600.00 18.00 20.00 1590.18 1411.18 87.84 31.97 1457503.15 2433976.39 317481.981 2434215.5 60 °39'30.398 "N 151 °01'10.554' 3.00 0.00 3.00 0.00 85.19 1633.33 19.00 20.00 1621.79 1442.79 97.78 35.59 1457506.92 2433986.27 317485.751 2434225.381 60 °39'30.496 "N 151 °01'10.481" 3.00 64.08 3.00 0.00 94.83 1700.00 19.95 25.28 1684.65 1505.65 118.26 44.16 1457515.81 2434006.62 317494.64 2434245.731 60 °39'30.698 "N 151 °01'10.309" 3.00 59.11 1.43 7.92 115.48 1800.00 21.64 32.27 1778.14 1599.14 149.29 61.29 1457533.42 2434037.38 317512.249 2434276.492 60 °39'31.003 "N 151 °01'09.965" 3.00 52.57 1.69 7.00 149.65 1900.00 23.58 38.24 1870.46 1691.46 180.59 83.52 1457556.13 2434068.33 317534.958 2434307.442 60 °3931.311 "N 151 °01'09.519" 3.00 47.06 1.94 5.96 187.58 2000.00 25.71 43.30 1961.36 1782.36 212.10 110.78 1457583.88 2434099.41 317562.707 2434338.524 60 °39'31.622 "N 151 °01'08.972" 3.00 42.45 2.13 5.07 229.17 2061.50 27.10 46.04 2016.45 1837.45 231.53 130.02 1457603.41 2434118.54 317582.236 2434357.654 60 °39'31.813 "N 151 °01'08.587" 3.00 0.00 2.26 4.45 256.51 2100.00 27.10 46.04 2050.72 1871.72 243.71 142.64 1457616.22 2434130.51 317595.046 2434369.625 60 °3931.933 "N 151 °01'08.333" 0.00 0.00 0.00 0.00 274.04 2200.00 27.10 46.04 2139.74 1960.74 275.33 175.43 1457649.49 2434161.62 317628.315 2434400.736 60 °39'32.244 "N 151 °01'07.675" 0.00 0.00 0.00 0.00 319.57 2300.00 27.10 46.04 2228.76 2049.76 306.95 208.22 1457682.76 2434192.73 317661.583 2434431.848 60 °39'32.556 "N 151 °01'07.017" 0.00 0.00 0.00 0.00 365.10 2400.00 27.10 46.04 2317.79 2138.79 338.57 241.01 1457716.04 2434223.84 317694.862 2434462.959 60 °39'32.867 "N 151 °01'06.360" 0.00 0.00 0.00 0.00 410.64 2500.00 27.10 46.04 2406.81 2227.81 370.19 273.79 1457749.31 2434254.94 317728.131 2434494.061 60 °3933.178 "N 151 °01'05.702" 0.00 0.00 0.00 0.00 456.17 2600.00 27.10 46.04 2495.83 2316.83 401.82 306.58 1457782.58 2434286.05 317761.399 2434525.172 60 °39'33.490 "N 151 °01'05.044" 0.00 0.00 0.00 0.00 501.70 2700.00 27.10 46.04 2584.85 2405.85 433.44 339.37 1457815.86 2434317.16 317794.678 2434556.284 60 °39'33.801 "N 151 °01'04.386" 0.00 . 0.00 0.00 0.00 547.23 2800.00 27.10 46.04 2673.87 2494.87 465.06 372.16 1457849.13 2434348.27 317827.947 2434587.395 60 °39'34.113 "N 151 °01'03.728" 0.00 0.00 0.00 0.00 592.76 2900.00 27.10 46.04 2762.90 2583.90 496.68 404.95 1457882.40 2434379.38 317861.216 2434618.507 60 °39'34.424 "N 151 °01'03.070" 0.00 0.00 0.00 0.00 638.30 3000.00 27.10 46.04 2851.92 2672.92 528.31 437.74 1457915.68 2434410.48 317894.494 2434649.608 60 °39'34.736 "N 151 °01'02.412" 0.00 0.00 0.00 0.00 683.83 3100.00 27.10 46.04 2940.94 2761.94 559.93 470.52 1457948.95 2434441.59 317927.763 2434680.719 60 °3935.047 "N 151 °01'01.754" 0.00 0.00 0.00 0.00 729.36 3200.00 27.10 46.04 3029.96 2850.96 591.55 503.31 1457982.22 2434472.70 317961.032 2434711.831 60 °39'35.358 "N 151 °01'01.096" 0.00 0.00 0.00 0.00 774.89 3300.00 27.10 46.04 3118.99 2939.99 623.17 536.10 1458015.49 2434503.81 317994.3 2434742.942 60 °39'35.670 "N 151 °01'00.438' 0.00 0.00 0.00 0.00 820.42 3400.00 27.10 46.04 3208.01 3029.01 654.79 568.89 1458048.77 2434534.91 318027.579 2434774.044 60 °39'35.981 "N 151°00'59.780' 0.00 0.00 0.00 0.00 865.95 3500.00 27.10 46.04 3297.03 3118.03 686.42 601.68 1458082.04 2434566.02 318060.848 2434805.155 60 °39'36.292 "N 151 °00'59.122" 0.00 0.00 0.00 0.00 911.49 3600.00 27.10 46.04 3386.05 3207.05 718.04 634.47 1458115.31 2434597.13 318094.116 2434836.267 60 °39'36.604"N 151 °00'58.464" 0.00 0.00 0.00 0.00 957.02 3700.00 27.10 46.04 3475.07 3296.07 749.66 667.26 1458148.59 2434628.24 318127.395 2434867.378 60 °3936.915 "N 151°00'57.806' 0.00 0.00 0.00 0.00 1002.55 3800.00 27.10 46.04 3564.10 3385.10 781.28 700.04 1458181.86 2434659.35 318160.664 2434898.49 60 °3937.227 "N 151 °00'57.148' 0.00 0.00 0.00 0.00 1048.08 3900.00 27.10 46.04 3653.12 3474.12 812.91 732.83 1458215.13 2434690.45 318193.933 2434929.591 60 °3937.538 "N 151 °00'56.490" 0.00 0.00 0.00 0.00 1093.61 4000.00 27.10 46.04 3742.14 3563.14 844.53 765.62 1458248.41 2434721.56 318227.211 2434960.703 60 °39'37.849 "N 151 °00'55.832' 0.00 0.00 0.00 0.00 1139.14 4100.00 27.10 46.04 3831.16 3652.16 876.15 798.41 1458281.68 2434752.67 318260.48 2434991.814 60 °39'38.161 "N 151 °00'55.174' 0.00 0.00 0.00 0.00 1184.68 4200.00 27.10 46.04 3920.18 3741.18 907.77 831.20 1458314.85 2434783.78 318293.749 2435022.925 60 °39'38.472 "N 151 °00'54.517' 0.00 0.00 0.00 0.00 1230.21 4300.00 27.10 46.04 4009.21 3830.21 939.39 863.99 1458348.22 2434814.88 318327.017 2435054.027 60 °39'38.784 "N 151 °00'53.859' 0.00 0.00 0.00 0.00 1275.74 4400.00 27.10 46.04 4098.23 3919.23 971.02 896.77 1458381.50 2434845.99 318360.296 2435085.138 60 °39'39.095 "N 151 °00'53.201' 0.00 0.00 0.00 0.00 1321.27 4500.00 27.10 46.04 4187.25 4008.25 1002.64 929.56 1458414.77 2434877.10 318393.565 2435116.25 60 °39'39.406 "N 151 °00'52.543" 0.00 0.00 0.00 0.00 1366.80 4600.00 27.10 46.04 4276.27 4097.27 1034.26 962.35 1458448.04 2434908.21 318426.833 2435147.361 60 °39'39.718 "N 151 °00'51.885" 0.00 0.00 0.00 0.00 1412.33 Page 1 of 3 Planned Wellpath Geographic Report Report Generated 24- Nov -O8 at 07:55:27 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999938 Field Beaver Creek Unit (NAD83) Horizontal Reference Point Slot Facility Pad #3 Vertical Reference Point Glacier #1 (RKB) Slot slot #18 MD Reference Point Glacier #1 (RKB) Well BC-18 Field Vertical Reference Mean Sea Level Wellbore BC-18 Glacier #1 (RKB) to Facility Vertical Datum 179.00 ft Wellpath BC-18 Version #3 Glacier #1 (RKB) to Mean Sea Level 179.00 ft Wellbore Last Revised 07/03/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) - Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 44.30° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] Slot Location - 1054.72 1630.04 1457469.82 2433889.07 60 °39'29.533 "N 151 °01'11.195'W Facility Reference Pt 1455856.60 2434969.10 60 °3919.921 "N 151 °01'43.901'W Field Reference Pt 1455856.60 2434969.10 60 °39'39.921 "N _ 151 °01'43.901'W • NAD 83 coordinates are converted to NAD 27 using Corpscon 6.0.1 (US Army Corps of Engineers) TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [`] [1 [ft] [ft] (ft) (ft] [ore ft] [sry ft) [ft] [ft] [' /l00R] [°] [° /100ft] [° /100ft] [ft] 4700.00 27.10 46.04 4365.30 4186.30 1065.88 995.14 1458481.32 2434939.31 318460.112 2435178.463 60 °39'40.029 "N 151 °00'51.227" 0.00 0.00 0.00 0.00 1457.87 4800.00 27.10 46.04 4454.32 4275.32 1097.51 1027.93 1458514.59 2434970.42 318493.381 2435209.574 60 °39'40.341 "N 151 °00'50.569 "W 0.00 0.00 0.00 0.00 1503.40 4900.00 27.10 46.04 4543.34 4364.34 1129.13 1060.72 1458547.86 2435001.53 318526.65 2435240.886 60 °39'40.652 "N 151 °00'49.911'W 0.00 0.00 0.00 0.00 1548.93 5000.00 27.10 46.04 4632.36 4453.36 1160.75 1093.51 1458581.14 2435032.64 318559.928 2435271.797 60 °39'40.963 "N 151 °00'49.253 "W 0.00 0.00 0.00 0.00 1594.46 5100.00 27.10 46.04 4721.38 4542.38 1192.37 1126.29 1458614.41 2435063.75 318593.197 2435302.909 60 °39'41.275 "N 151 °00'48.595 "W 0.00 0.00 0.00 0.00 1639.99 5200.00 27.10 46.04 4810.41 4631.41 1223.99 1159.08 1458647.68 2435094.85 318628.466 2435334.01 60 °39'41.586 "N 151 °00'47.937 "W 0.00 0.00 0.00 0.00 1685.53 5300.00 27.10 46.04 4899.43 4720.43 1255.62 1191.87 1458680.95 2435125.96 318659.734 2435365.122 60 °39'41.897 "N 151 °00'47.279 "W 0.00 0.00 0.00 0.00 1731.06 5400.00 27.10 46.04 4988.45 4809.45 1287.24 1224.66 1458714.23 2435157.07 318693 .013 2435396.233 60 °39'42.209 "N 151 °00'46.621 "W 0.00 0.00 0.00 0.00 1776.59 5500.00 27.10 46.04 5077.47 4898.47 1318.86 1257.45 1458747.50 2435188.18 318726.282 2435427.344 60 °39'42.520 "N 151 °00'45.963 "1A 0.00 0.00 0.00 0.00 1822.12 5600.00 27.10 46.04 5166.50 4987.50 1350.48 1290.24 1458780.77 2435219.28 318759.55 2435458.446 60 °39'42.832 "N 151 °00'45.304'W 0.00 0.00 0.00 0.00 1867.65 5700.00 27.10 46.04 5255.52 5076.52 1382.11 1323.02 1458814.05 2435250.39 318792.829 2435489.557 60 °39'43.143 "N 151 °00'44.646'W 0.00 0.00 0.00 0.00 1913.18 5800.00 27.10 46.04 5344.54 5165.54 1413.73 1355.81 1458847.32 2435281.50 318826.098 2435520.669 60 °39'43.454 "N 151 °00'43.988 "W 0.00 0.00 0.00 0.00 1958.72 5900.00 27.10 46.04 5433.56 5254.56 1445.35 1388.60 1458880.59 2435312.61 318859.367 2435551.78 60 °39'43.766 "N 151 °0043.330'W 0.00 0.00 0.00 0.00 2004.25 6000.00 27.10 46.04 5522.58 5343.58 1476.97 1421.39 1458913.87 2435343.72 318892.645 2435582.892 60 °38'44.077 "N 151 °00'42.672 "W 0.00 0.00 0.00 0.00 2049.78 6100.00 27.10 46.04 5611.61 5432.61 1508.60 1454.18 1458947.14 2435374.82 318925.914 2435613.993 60 °39'44.388 "N 151 °00'42.014"W 0.00 0.00 0.00 0.00 2095.31 6200.00 27.10 46.04 5700.63 5521.63 1540.22 1486.97 1458980.41 2435405.93 318959.183 2435645.105 60 °39'44.700 "N 151 °00'41.3561A 0.00 0.00 0.00 0.00 2140.84 6300.00 27.10 46.04 5789.65 5610.65 1571.84 1519.75 1459013.68 2435437.04 318992.451 2435676.216 60 °39'45.011 "N 151°00'40.698"A 0.00 0.00 0.00 0.00 2186.37 6338.60 27.10 46.04 5824.01 5645.01 1584.05 1532.41 1459026.53 2435449.05 319005.301 2435688.227 60 °39'45.131 "N 151 °00'40.4441A 0.00 - 180.00 0.00 0.00 2203.95 6400.00 25.87 46.04 5878.97 5699.97 1603.05 1552.12 1459046.53 2435467.74 319025.3 2435706.918 60 °39'45.319 "N 151 °00'40.049'W 2.00 180.00 -2.00 0.00 2231.32 6500.00 23.87 46.04 5969.69 5790.69 1632.25 1582.39 1459077.25 2435496.46 319066.019 2436735.639 60 °39'45.606 "N 151 °00'39.441'W 2.00 180.00 -2.00 0.00 2273.35 _ 6600.00 21.87 46.04 6061.82 5882.82 1659.23 1610.36 1459105.63 2435523.00 319084.398 2435762.18 60 °39'45.872 "N 151 °00'38.8801A, 2.00 180.00 -2.00 0.00 2312.20 6700.00 19.87 46.04 6155.26 5976.26 1683.96 1636.01 1459131.65 2435547.33 319110.417 2435786.511 60 °39'46.115 "N 151 °00'38.365 "A 2.00 - 180.00 -2.00 0.00 2347.81 6800.00 17.87 46.04 6249.88 6070.88 1706.41 1659.29 1459155.28 2435569.42 319134.046 2435808.603 60 °39'46.336 "N 151 °00'37.898 "W 2.00 180.00 -2.00 0.00 2380.14 6900.00 15.87 46.04 6345.57 6166.57 1726.55 1680.17 1459176.47 2435589.24 319155 .235 2435828 .423 60 °39'46.535 "N 151 °0037.479'W 2.00 180.00 -2.00 0.00 2409.14 -- • 7000.00 13.87 46.04 6442.21 6263.21 1744.37 1698.65 1459195.22 2435606.76 319173.984 2435845.944 60 °39'46.710 "N 151 °00'37.108 "W 2.00 - 180.00 -2.00 0.00 2434.79 7100.00 11.87 46.04 6539.70 6360.70 1759.83 1714.68 1459211.49 2435621.97 319190.254 2435861.155 60 °39'46.862 "N 151 °00'36.786'W 2.00 - 180.00 -2.00 0.00 2457.06 7200.00 9.87 46.04 6637.90 6458.90 1772.92 1728.25 1459225.26 2435634.85 319204.023 2435874.036 60 °39'46.991 "N 151 °00'36.514 "W 2.00 180.00 -2.00 0.00 2475.91 7300.00 7.87 46.04 6736.70 6557.70 1783.63 1739.35 1459236.53 2435645.38 319215.293 2435884.566 60 °39'47.097 "N 151 °00'36.291'W 2.00 180.00 -2.00 0.00 2491.32 7400.00 5.87 46.04 6835.97 6656.97 1791.93 1747.96 1459245.26 2435653.55 319224.022 2435892.737 60 °39'47.178 "N 151 °00'36.118 "W 2.00 180.00 -2.00 0.00 2503.28 7500.00 3.87 46.04 6935.61 6756.61 1797.83 1754.07 1459251.47 2435659.35 319230 .232 2435898.537 60 °39'47.236 "N 151 °0035.995 "W 2.00 180.00 -2.00 0.00 2511.76 7600.00 1.87 46.04 7035.48 6856.48 1801.30 1757.68 1459255.12 2435662.77 319233.882 2435901.957 60 °39'47.271 "N 151 °00'35.923 "W 2.00 180.00 -2.00 0.00 2516.77 7693.54 0.00 325.42 7129.00 6950.00 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °0015.901"W 2.00 0.00 -2.00 0.00 2518.29 7700.00 0.00 325.42 7135.46 6956.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 0.00 0.00 0.00 2518.29 7800.00 0.00 325.42 7235.46 7056.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 0.00 0.00 0.00 2518.29 7900.00 0.00 325.42 7335.46 7156.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 0.00 0.00 0.00 2518.29 8000.00 0.00 325.42 7435.46 7256.46 1802.36 1758.78 1459256.24 2435663.81 319236.002 2435902.997 60 °39'47.281 "N 151 °00'35.9011A 0.00 0.00 0.00 0.00 2518.29 8100.00 0.00 325.42 7535.46 7356.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.9011N 0.00 0.00 0.00 0.00 2518.29 8200.00 0.00 325.42 7635.46 7456.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 0.00 0.00 0.00 2518.29 8228.54 0.00 325.42 7664.00 7485.00 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 -34.58 0.00 0.00 2518.29 8300.00 0.00 325.42 7735.46 7556.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °0035.901 "W 0.00 0.00 0.00 0.00 2518.29 8400.00 0.00 325.42 7835.46 7656.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 -0.01 0.00 0.00 2518.29 8500.00 0.00 - 325.42 7935.46 7756.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901"W 0.00 0.00 0.00 0.00 2518.30 8600.00 0.00 325.42 8035.46 7856.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 0.00 0.00 0.00 2518.30 8700.00 0.00 325.42 8135.46 7956.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 0.04 0.00 0.00 2518.30 8723.54 0.00 325.42 8159.00 7980.00 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 180.00 0.00 0.01 2518.30 8800.00 0.00 325.42 8235.46 8056.46 1802.37 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 - 180.00 0.00 0.00 2518.30 8900.00 0.00 145.66 8335.46 8156.46 1802.37 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 -0.24 0.00 - 179.76 2518.30 9000.00 0.00 145.42 8435.46 8256.46 1802.37 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 0.00 0.00 -0.24 2518.30 9100.00 0.00 145.42 8535.46 8356.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901 "W 0.00 0.00 0.00 0.00 2518.30 Page 2 of 3 Planned Wellpath Geographic Report Report Generated 24- Nov -08 at 07:55:27 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999938 Field Beaver Creek Unit (NAD83) Horizontal Reference Point Slot Facility Pad #3 Vertical Reference Point Glacier #1 (RKB) Slot slot #18 MD Reference Point Glacier #1 (RKB) Well BC-18 Field Vertical Reference Mean Sea Level Wellbore BC -18 Glacier #1 (RKB) to Facility Vertical Datum 179.00 ft Wellpath BC-18 Version #3 Glacier #1 (RKB) to Mean Sea Level 179.00 ft Wellbore Last Revised 07/03/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 44.30° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft) Slot Location - 1054.72 1630.04 1457469.82 2433889.07 60 °39'29.533 "N 151 °01'11.195'W Facility Reference Pt 1455856.60 2434969.10 60 °39'39.921 "N 151 °01'43.901 "W Field Reference Pt 1455856.60 2434969.10 60 °39'39.921 "N 151 °01'43.901'W ' NAD 83 coordinates are converted to NAD 27 using Corpscon 6.0.1 (US Army Corps of Engineers) TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] ('] [`] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ft] [ft] [ °/100ft] [ °] ['I100ft] [° /100ft] [ft] 9200.00 0.00 145.42 8635.46 8456.46 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901' 0.00 0.00 0.00 0.00 2518.30 9243.54 0.00 145.42 8679.00 8500.00 1802.36 1758.78 1459256.24 2435663.81 319235.002 2435902.997 60 °39'47.281 "N 151 °00'35.901" 0.00 0.00 0.00 0.00 2518.29 i Page 3 of 3 Planned Wel l path p ath Re ort BAKER 1 BC -18 Version #3 HUGHES MARATHON Page 1 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #18 Cook Inlet, Alaska (Kenai Penninsula BC 18 Field Beaver Creek Unit (NAD83) Wellbore BC-18 Pad #3 IIIIIIIIIIIININIIIIIIIIIIIIIIIIIIMIIIIIMIIIIIINIIIIIIIIIIIIIIIIIIIIIMII REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Jonethoh Scale 0.999938 Report Generated 24- Nov -08 at 06 :35:22 Convergence at slot 0.8 .89° West Database /Source file WAAnchoragelBC- 18.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude -Siot Location - 1054.72 1630.04 1457469.82 2433889.07 60 °39'29.533 "N 151 °01'11.195 "W Facility Reference Pt 1111111111111 1455856.60 2434969.10 60°39'39.921"N 151°01'43.901"W Field Reference Pt 1455856.60 2434969.10 60 °39'39921 "N 151 °01'43.901 "W WELLPATH DATUM Calculation method MMMMIMZMEMIIIIIMIMIMINIIMIBGlacier #1 (RKB) to Facility Vertical Datum 179.00ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 179.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Section Origin N 0 .00, E 0 .00 ft Field Vertical Reference S ection Azimuth 4430° ■ Planned Wellpath Report BA KER ' BC -18 Version #3 HUGHES MARATHON Page 2 of 6 INTEQ REFERE CE WELLPATH IDENTIFICATION 'Operator MARATHON Oil Company Slot slot #18 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -18 Field Beaver Creek Unit (NAD83) Welibore ABC -18 Facility JPad #3 ELLPATH DATA 100 stations = inter . olated /extra i olated station MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments [ft] [ [ [ft[ [ft] [ft] [ft] [sry ft] [sry ft] ] °/100ft] [ ° /100ft] [ ° /100ft] 0.00 0.000 20.000 0.00 0.00 0.00 0.00 1457469.82 2433889.07 0.00 0.00 0.00 RKB 179' 100.00]' 0.000, 20.000 100.00 0.00 0.00 0.00 1457469.82 2433889.07 0.00 0.00 0.00 200.00f 0.000 20.000 200.00 0.00 0.00 0.00 1457469.82 2433889.07 0.00 0.00 0.00 300.00f 0.000 20.000 300.00 0.00 0.00 0.00 1457469.82 2433889.07 0.00 0.00 0.00 500.00f! 0.000 20.000 500.00 0.00 0.00 0.00 1457469.82 2433889.07 0.00 0.00 0.00 600.00f 0.000 20.000 600.00 0.00 0.00 0.00 1457469.82 2433889.07 0.00 0.00 0.00 700.001 0.000 20.000 700.00 0.00 0.00 0.00 1457469.82 2433889.07 0.00 0.00 0.00 *: 800.00 0.000 20.000 800.00 0.00 0.00 0.00 1457469.82 2433889.07 0.00 0.00 0.00 _ 1 1 1 1 !at fl 1 • �k 1 1 10 0.000 20.000 1000.00 0.00 0.00 ; 0.00 1457469.82 2433889.07 0.00 0.00 0.00KOP 1100.00f 3.000 20.000 1099.95 2.39 2.46 0.90 1457470.76 2433891.51 3.00 3.00 0.00 1200.00t 6.000 20.000 1199.63 9.54 9.83 3.58 1457473.55 2433898.84 3.00 3.00 0.00 1300 9.000, 20.000 1298.77 21.43 22.10 8.04 1457478.21 2433911.03 3.00 3.00 0.00 t ' 111 1 ' ". s - --- 1 1500.00! 15.000 20.000 1494.31 59.31 61.15 22.26 1457493.03 2433949 86 3.00 3.00 0.00 1600.00f 18.000 20.000 1590.18 85.19 87.84 31.97 1457503.15 2433976.39 3.00 3.00 0.00 1633.33 19.000 20.000 1621.79 94.83 97.78 35.59 1457506.92 2433986.27 3.00 3.00 0.00 Begin Turn to Tgt 1700.00f 19.952 25.278 1684.65 115.48 118.26 44.16 1457515.81 2434006.62 3.00 1.43 7.92 �s , 1900.00] 23.578 38.236 1870.46 187.58 180.59 83.52 ( 1457556.13 2434068.33 3.00 1.94 5.96 2000.00] 25.711 43.303 1961.36 229.17 212.10 110.78 1457583.88 2434099.41 3.00 2.13 5.07 2061.50 27.099 46.037 2016.45 256.51 231.53 130.02 1457603.41 2434118.54 3.00 2.26 4.45 End of Curve 2100.00 27.099 46.037 2050.72 274.04 243.71 142.64 1457616.22 2434130.51 0.00 ` 0.00 0.00 2300.00f 27.099 46.037 2228.76 365.10 306.95 208.22 1457682.76 2434192.73 0.00 0.01 0.00 2400.00'x' 27.099 46.037 2317.79 410.64 338.57 ` 241.01 1457716.04 2434223.84 0.00 0.00 0.00 2500.00'' 27.099 46.037 2406.81 456.17 370.19 273.79 1457749.31 2434254.94 0.00 0.00 0.00 2600.00 27.099 46.037 2495.83 501.70 401.82 ! 306.58 1457782.58 2434286.05 0.00 0.00 0.00 Planned Wellpath Report BA KER ■ BC -18 Version #3 HUGHES MARATHON Page 3 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #18 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -18 Field Beaver Creek Unit (NAD83) Wellbore BC -18 Facility Pad #3 WELLPATH DATA (100 stations) = interpolated /extrapolated station MD Inc lination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate omments ft i 0 ft ft ft j ft sry ft] ! sry ft ° /100ft 0 /10011 ° /100ft 2800.00t 27.099 46.037 2673.87 592.76 465.06 372.16 1457849.13 2434348.27 0.00 0.00 0.00 2900.001 27.099 46.037 2762.90 638.30 496.68 , 404.95 1457882.40 2434379.38 0.00 0.00 0.00 3000.001 27.099 46.037 2851.92 683.83 528.31 437.74 1457915.68 j 2434410.48 0.00 0.00 0.00 3100.001 27.099 46.037 2940.94 729.36 559.93 470.52 1457948.95 2434441.59 0.00' 0.00 0.00 ,: =^,.. 3300.00f 27.099 46.037 3118.99 820.42 623.17 536.10' 1458015.49 2434503.81 0.00 0.00 0.00 3400.00f 27.099 46.037 3208.01 865.95 654.79 568.89 1458048.77 2434534.91 0.00 0.00 0.00 3500.001 27.099 46.037 3297.03 911.49 686.42 601.68 1458082.04 2434566.02 0.00 0.00 0.00 3600.00 27.099 46.037 3386.05 957.02 718.04 634.47 1458115.31 2434597.13 0.00 0.00 0.00 } { ./ 3800.00t' 27.099 46.037 3564.10 1048.08 781.28 700.04 1458181.86 2434659.35 0.00 0.00 0.00 3900.00'* 27.099 46.037 3653.12 1093.61 812.91 732.83 1458215.13 2434690.45 ' 0.00 0.00 0.00 4000.001 27.099 46.037 3742.14 1139.14 844.53 765.62 1458248.41 2434721.56 0.00 0.00 0.00 4100.00' 27.099 46.037 3831.16 1184.68 876.15 798.41 1458281.68 2434752.67 3 0.001 0.00 0.00 @ t 8 t t 6`s k 6'l : 4300.00' 27.09' 46.037 4009.21 1275.74 939.39 863.99; 1458348.22 2434814.88 0.00 0.00 0.00 4400.00' 27.099 46.037 4098.23 1321.27 971.02 896.77 1458381.50 2434845.99 0.00 0.00 0.00 4500.001 27.099 46.037 4187.25 1366.80 1002.64 929.56 1458414.77 2434877.10 0.00 0.00 0.00. 4600.00f 27.099 46.037 4276.27 1412.33 1034.26 962.35 1458448.04 2434908.21 0.00 0.00 0.00 4800.00t 27.099 46.037 4454.32 1503.40 1097.51 1027.93 1458514.59 2434970.42 0.00 0.00 0.00 4900.001 27.099 46.037 4543.34 1548.93 1129.13 1060.72 1458547.86 2435001.53 0.00 0.00 0.00 5000.00' 27.099 46.037 4632.36 1594.46 1160.75 1093.51 1458581.14 2435032.64 0.00 0.00 0.00 5100.00f 27.099 46.037 4721.38 ! 1639.99 E 1192.37 1126.29 1458614 41 2435063.75 ] 0.00 , 0.00 0.00 • S f,k I I o` �p`� J � � � f� � i • `< a : ° s e" .a ... , A��/�e " a. t'' � 5300.00f 27.099 46.037 4899.43 1731 06 1255.62 1191.87 1458680.95 2435125.96 j 0.00 0.00 0.00 r 5400.001 27.099 46.037 4988.45 1776.59 1287.24 1224.66 1458714.23 2435157.07 0.00 0.00 0.00 5500.00t 27.099 46.037 5077.47 1822.12 1318.86 1257.45 1458747.50 2435188.18 z 0.00 0.00 0.00 5600.00 27.099 46.037 5166.50 1867.65 1350.48 1290.24 1458780.77 2435219 28 F 0.00 0.00 0.00 tt tti _ '� ia� .pit , � Planned Wellpath Report BAKER BC -18 Version #3 HUGHES MARATHON Page 4 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #18 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -18 Field Beaver Creek Unit (NAD83) Wellbore BC -18 Facility Pad #3 ELLPATH DATA 100 stations = interpolated /extra a olated station MD Inclination , ( TVD Vert Sect North Grid East Grid North DES Build Rate Turn Rate Comments ft11� ft ft ft sry ft sry ft °/100ft ° /100ft ° /100ft 5800.00f 27.099 46.037 5344.54 1958.72 1413.73 1355.81 1458847.32 2435281.50 0.00 0.00 0.00 5900.001 27.099 46.037 5433.56 I 2004.25 1445.35 1388.60 1458880.59 2435312.61 0.00 0.00 0.00 6000.00' 27.099 46.037 5522.58 2049.78 1476.97 1421.39 1458913.87 2435343.72 0.00 0.00 0.00 6100.00 27.099 46.037 5611.61 2095.31 1508.60 1454.18 1458947.14 2435374.82 0.00 0.00 0.00! �e�sts 6300.00 27.099 46.037 5789.65 2186.37 1571.84 1519.75 1459013.68 2435437.04 0.00 0.00 0.00 6338.60 27.099 46.037 5824.01 2203.95 1584.05 1532.41 1459026.53 2435449.05 0.00 0.00 0.00: I egin Angle Drop 6400.00f 25.871 46.037 5878.97 2231.32 1603.05 1552.12 1459046.53 2435467.74 2.00 -2.00 0.00 6500.00 23.871 46.037 5969.69 2273.35 + 1632.25 1582.39 1459077.25 2435496.46 2.00 -2.00 0.00 6700.00f 19.871 46.037 6155.26 ` 2347.81 j 1683.96 1636.01 1459131.65 2435547.33 2.00 -2.00 0.00 6800.00' 17.871 46.037 6249.88 2380.14 1706.41 1659.29 1459155.28 2435569.42 2.00 -2.00 0.00 6900.00f 15.871 46.037 6345.57 2409.14 1726.55 1680.17 1459176.47 2435589.24 2.00 -2.00 0.00 7000.00 13.871 46.037 6442.21 2434.79 1744.37 1698.65 1459195.22 2435606.76 2.00 -2.00 0.00 7200.00f 9.871 46.037 6637.90 2475.91 1772.92 1728.25 1459225.26 2435634.85 2.00 -2.00 0.00 7300.00f 7.871 46.037 6736.70 2491.32 1783.63 1739.35 1459236.53 2435645.38 2.00 -2.00 0.00 7400.001 5.871 46.037 6835.97 2503.28 1791.93 1747.96 1459245.26 2435653.55 2.00 -2.00 0.00 7500.00 f 3.871 46.037 6935.61 2511.76 1797.83 1754.07 1459251.47 2435659.35 2.00 -2.00 0.00 7693.54 0.000 325.421 2518.29 2.00 -2.00 0.00 Lower Beluga 16 / EOD 7700.00f 0.000 325.421 7135.46 2518.29 1802.36 1758.78 1459256.24 2435663.81 0.00 0.00 0.00 7800.00f 0.000 325.421 7235.46 2518.29 1802.36 1758.78 1459256.24 2435663.81 0.00 i 0.00 0.00! 7900.00 0.000 325.421 7335.46 2518.29 1802.36 1758.78 1459256.24 2435663.81 0.00 0.00 0. 00 8100.00' 0.000 325.421 7535.46 2518.29 1802.36 1758.78 1459256.24 2435663.81 0.00 0.00 0.00 8200.00 0.000 325.421 7635.46 2518.29 ( 1802.36 1758.78 1459256.24 2435663.81 0.00 0.00 0.00 8228.54 0.000 2518.29 ! 0.00 0.00 0.00 Lower Beluga 23 8300.00f 0.000 325.424 7735.46 2518.29 1802.36 1758.78 1459256.24 2435663.81 0.00 0.00 0.00 Planned Wellpath Report BAI I � BC -18 Version #3 HUGHES MARATHON Page 5 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #18 Millill Cook Inlet, Alaska (Kenai Penninsula) MEM. BC -18 Field Beaver Creek Unit (NAD83) Wellbore BC -18 Pad #3 ELLPATH DATA (100 stations) t = interpolated /extra • olated station MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments [ft] 1 [ [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ °/100ft] 1 °/100ft] [ °/100ft] 8500.00t 0.000 325.419 7935.46 2518.30 1802.36 1758.78 j 1459256.24 2435663.81 0.00 0.00 0.00 8600.00t 0.001 325.419 8035.46 2518.30 1802.36 1758.78 1459256.24 2435663.81 0.00 0.00 0.00 ! 8700.00f 0.001 325.419 8135.46 2518.30 1802.36 1758.78 1459256.24 2435663.81 0.00 0.00 0.00 8723.54 0.001 325.421 8159.003 2518.30 0.00 0.00 0.01 Lower Beluga 28 a $ £ $ i $ 2518':;. 4 I ,,,i 8900.00t 0.000 145.663 8335.46 2518.30 1802.37 1758.78 1459256.24 2435663.81 0.00 0.00 - 179.76 9000.00t 0.000 145.422 8435.46 2518.30 1802.37 1758.78 1459256.24 2435663.81 0.00 0.00 -0.24 9100.00t 0.001 145.421 8535.46 2518.30 1802.36 1758.78 1459256.24 2435663.81 0.00 0.00 0.00 9200.00t 0.001 145.421 8635.46 2518.30 1802.36 1758.78 1459256 24 2435663.81 0.00 0.00 0.00 HOLE & CASING SECTIONS Ref Wellbore: BC -18 Ref Wellpath: BC -18 Version #3 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 16in Open Hole 0.00 2100.00 2100.00 0.00 2050.72 0.00 0.00 243.71 142.64 13.375in Casing Surface 0.00 2100.00 2100.00 0.00 2050.72 0.00 0.00 243.71 142.64 12.25in Open Hole 2 7593.52 5493.52, 2050.72 7029.00 243.71 ` 142.64 1801.15 1757.52 9.625in Casing Intermediate 0.00 7593.52 7593.52! 0.00 7029.00 0.00 0.00 1801.15 1757.52 8.5in Open Hole 7593.52 9243.54 1650.02 7029.00 8679.00 1801.15 1757.52 1802.36 1758.78 3.5in Casing Production I 0.001 9243.54 9243.54 0.00 8679.00 0.00 0.00 1802.36 1758.78 AAA Planned Wellpath Report BA KER ■ BC -18 Version #3 HUGHES MARATHON Page 6 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slo slot #18 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -18 Field Beaver Creek Unit (NAD83) Wellbore BC -18 Facility IPad #3 TARGETS _ ,Name MD TVD North East Grid East Grid North Latitude Longitude Shape [ft] [ft] [ft] [ft] [sry ft] [sry ft] 1) BC -18 Lower Beluga 16 (NAD83) 24- 7693.54 .° ,. 4, 2435663.81 60 °39'47.281 "NI 151 °00'35.901 "W circle 'Oct-08 2) BC -18 Lower Beluga 23 (NAD83) 24- 8228.54 M64.00 1802.36 175 ' °" °° 9256.24' 2435663.81 60°39'47.281"N1 151°00'35.901"W circle Oct -08 3) BC -18 Lower Beluga 28 (NAD83) 24- 8723.54 ) ' 4 a ,9256.24, 2435663.81' 60 °39'47.281 "N ° °' ' "W: circle Oct -08 9243.54 8679.00 1802.36 1758.78 1459256.24 2435663.81 60°39 '47.281 "N i 151°00'3 ' circle ;4) BC -18 TD (NAD83) 24- Oct -08 SURVEY PROGRAM Ref Wellbore: BC -18 Ref Wellpath: BC -18 Version #3 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore ft ft 0.00 2100.001 aviTrak (Magcorrl) It C-18 2100.00 7593.52 aviTrak (Magcorrl) I: C - 18 7593.52 9243.541 aviTrak (Magcorrl) 1: C -18 M MAR THON Oil Company BAKER EMI Location: Cook Inlet, Alaska (Kenai Penninsula) HUGHES MARATHON Field: Beaver Creek Unit (NAD83) Well: BC -18 INTEQ Facility: Pad #3 Wellbore: BC -18 Plot reference wellpath is BC -18 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 24- Nov -08 Scale l inch =100ft Easting (ft) -250 -200 -150 -100 -50 0 50 100 150 200 250 300 350 400 450 500 1 1 1 1 , -- to 1 1 1 1 1 1 1 1 t■ , 1 500 ci m 450 — 5200 G 450 2500 0 10300 400 — 2500 — 400 350 — — 350 10000 4900 300 — 2200 — 300 2200 250 — 13 3/8 "Casing Surface p — 250 A' 200 — 200 9700 1900 1 — 4600 — 150 1900 Z 0 0) c 3 z 100 - 9400 1800 — 100 (0 t O Z 50 4300 c),9 — 50 se _10 9100 1300 c D o 0 — 1000 0 1600 ? 4000 SIOt #18 ` 3700 slot #10 16+ - 50 — 2800 8800 slot #11 °° �� x `9 ° 0 8200 o° /300 ^ ° o -100 — 7000 ! 8500 9,9) ci °O `/ - - 5500 slot #6 °" 2501 8200 slot #9 1000 3100 150 — slot #5 1000 1000 slot #19 c5 •\°° - -150 o` SIOt #3 3400 °O 1031 • 200 200 slot #16 106.1 Slot #13 e 1300 SC-6 1900 ^ 1000 .100 3700 — 0 _ 2500 2800 90 U 100 U i 1 1 1 7 0 1 m 1 ' 1 1 1 1 1 1 1 1 1 1 -250 -200 450 -100 -50 0 50 100 150 200 250 300 350 400 450 Scale 1 inch = 100 ft Easting (ft) MAR - - --- ION Oil Company BA Location: Cook Inlet, Alaska (Kenai Penninsula) I'IYGNES MARATHON Field: Beaver Creek Unit (NAD83) Well: BC 18 INTEQ Facility: Pad #3 Wellbore: BC -18 Plot reference wellpath is BC -18 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 24- Nov -08 Scale , inch = loon Easting (ft) 100 150 200 250 300 350 400 450 500 550 600 650 700 750 950 1 1 1 11505 47 1 1 I I 1 1 1 1 1 1 I 950 900 - - 900 850 - gy p ^ 850 3700 11200 800 - ,s 800 �U 3100 750 — — 750 3400 700 - 700 650 - ■ 650 3100 600 — 2800 — 600 ' Z 0 C 3- 550 - - 550 c Q L Z 9 2800 500 - - 500 450 - - 450 2500 400 - 2500 - 400 350 - - 350 300 - 2200 - 300 2200 13 3 /8 "Casin c Surface 250- P - 250 f\ 2100 - 200 , 1 1 1 1 1 1 1 1 1 1 1 1 1 1 100 150 200 250 300 350 400 450 500 550 600 650 700 750 Scale 1 inch = 100ft Easti ng (ft) • • rats MARATHON Oil Company BAKER Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #18 INTEQ MARATHON Field: Beaver Creek Unit (NAD83) Well: BC -18 Facility: Pad #3 Wellbore: BC -18 Plot reference wellpath is BC -18 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 24- Nov -08 Traveling Cylinder: Map North All depths are Measured Depths on Reference Wellpath 0 330' 30' 0011 6011 300' 60' 4011 201t 2101 ",1 ants emit Mit 21111 200 4011 anit 400 ■ , 2 j 20,1 2 Slot ; ` 0 2200 /Oft 59 ` 100 �_ 120 2'° 1100 \\ .........� ` `� eat 2000 1200 — 130. _-____ 800 66,1 700 210' . .00 150' 1400 00 400 Scale 1 inch = 30 ft Clearance Report BC -18 Version #3 BAKER Closest Approach HUGHES MARATHON Page 1 of 46 INTEQ :REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #18 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -18 Field Beaver Creek Unit (NAD83) Wellbore BC -18 Facility Pad #3 i_ REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Jonethoh Scale 0.999938 Report Generated 24- Nov -08 at 06:37:31 Convergence at slot 0.89° West Database /Source file WA_Anchorage/BC- 18.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North ft East ft Eastin USft Northin USft Latitude Longitude North[ ft] East[ ft] g[ 1 g� 1 g' Slot Location - 1054.72 1630.04 1457469.82 2433889.07 60 °39'29.533 "N 151 °01'11.195 "W Facility Reference Pt 1455856.60 2434969.10 60°39'39.921"N 151°01'43.901"W :Field Reference Pt 1455856.60 2434969.10 60°39'39.921"N 151°01'43.901"W WELLPATH DATUM ;Calculation method Minimum Curvature Glacier #1 (RKB) to Facility Vertical Datum 179.00ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 179.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Field Vertical Reference Mean Sea Level POSITIONAL UNCERTAINTY CALCULATION SETTINGS Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.00ft : Surface Position Uncertainty included Declination 19.11° East of TN Dip Angle 73.56° Magnetic Field Strength 55510 nT Clearance Report Mae BC -18 Version #3 Closest Approach BAKER MARATHON Page 2 of 46 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #18 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -18 Field Beaver Creek Unit (NAD83) Wellbore BC -18 Facility Pad #3 ANTI COLLISION RULE Rule Name E _ .. .., -type Closest Approach w/Hole &Csg Limit:0 StdDev:3.00 w /Surface Uncert Rule Based On Ellipsoid Separation Plane of Rule ; Closest Approach Threshold Value 0.00ft Subtract Casing & Hole Size yes 'Apply Cone of Safety no , HOLE & CASING SECTIONS Ref Wellbore: BC -18 Ref Wellpath: BC -18 Version #3 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 16in Open Hole 0.00 2100.00 2100.00 0.00 2050.72 0.00 0.00 243.71 142.64 13.375in Casing Surface 0.00 2100.00 2100.00 0.00 2050.72 0.00 0.00 243.71 142.64 12.25in Open Hole 2100.00 7593.52 5493.52 2050.72 7029.00, 243.71 142.64 1801.15 1757.52 9.625in Casing Intermediate 0.00 7593.52 7593.52` 0.00 7029.00 0.00 0.00' 1801.15 1757.52 8.5in Open Hole 7593.52 9243.54 1650.02 7029.00 8679.00 1801.15 1757.52 1802.36 1758.78 "3.Sin Casing Production 0.00 9243.54 9243.54 0.00 8679.00, 0.00 0.00, 1802.36 1758.78 SURVEY PROGRAM Ref Wellbore BC -18 Ref Wellpath: BC -18 Version #3 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ftj 0.00 2100.001 aviTrak (Magcorrl) C -18 2100.00 7593.521 aviTrak (Magcorrl) C -18 7593.52 9243.541 aviTrak (Magcorrl) C -18 Clearance Report I BC -18 Version #3 BAKER Closest Approach HUGHES MARATHON Page 3 of 46 INTEQ REFERENCE �> _a EFERENCE WELLPATH IDENTIFICATION "Operator MARATHON Oil Company Slot slot #18 Area Cook Inlet, Alaska (Kenai Penninsula) Well I BC -18 Field Beaver Creek Unit (NAD83) Wellbore !BC-18 'Facility Pad #3 ,: CALCULATION RANGE & CUTOFF From: O.00ft MD ITo: 9243.54ft MD IC - C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (10 Offset Wellpaths selected) _ - Offset Offset ' Offset Offset Offset Ref Min C -C Diverging Ref MD of Min C -C Min C -C ACR Facility Slot . Well : Wellbore ' Wellpath MD Clear Dist from MD Min C -C Ell Sep Ell Sep Status [ft] [ft] [ft] Ell Sep [ft] , Dvrg from [ft] [ft] Pad #3 slot #3 BC -3 BC -3 MSS <0- 6393' >,MWD <6433 - 10005> 2075.43 79.44 2075.43 2197.22 40.89 2197.22 PASS Pad #3 slot #10 BC -10 BC -10 MWD <0 -8854> 944.60 91.13 944.60 980.69 76.64 980.69 PASS Pad #3 slot #19 BC -19 BC -19 NaviTrak MWD <214 - 9068'> 1000.00 140.06 1000.00 1008.99 125.47 9243.541. PASS Pad #3 slot #9 BC -9 BC -9 MWD <0 -5923> GCT Gyro <5943 -8858> 0.00 147.03 9000.00 33.68 133.80 9000.00 .d• t 0 • i .. : ..x.. t. Pad #3 slot #6 BC -6 BC -6 GMS <0- 15844> 100.00 177.96 9243.54' 732.86 164.11 9243.54 PASS Pad #3 , slot #5 BC -5 BC -5 GMS <0 -600> MMS <668 -7960> GMS <8000- 16247> 500.00' 194.40 9243.54 500.99 180.52 9243.54 PASS • Pad #3 slot #16 BC -16 BC -16 MWD <0 -6422> 0.00 218.80 0.00 0.001 205.30 0.00 PASS Pad #3 slot #16 BC -16 BC -16Rd MWD <5149 - 9421'> 0.00 218.80 9100.00 0.00 205 57 9100.00 PASS • • Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN M� 9 W*G Prepared For: MARATHON OIL COMPANY Well Beaver Creek # 18 Kenai Peninsula, Alaska r Prepared by: Jim Dwyer Presented to: Will Tank November 25, 2008 • Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the revised recommended drilling fluid program for the Beaver Creek # 18 Well to be drilled in 2009. The following is a brief synopsis of the program. Overview: Beaver Creek # 18 is a development well targeting the Beluga formation at the Beaver Creek field. Flo -Pro fluid will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with a 3 -1/2" excape system cemented in place. Surface Interval: The surface interval will be drilled with the standard Gel /Gelex spud mud. No problems were noted in this interval while drilling Beaver Creek # 11. Intermediate Interval: This interval will be drilled with a Flo -Pro NT fluid. After drilling out the surface cement, the well will be displaced to a standard Flo -Pro KC1 fluid. Safecarb / GSeal bridging material will be maintained according to the mud program to minimize losses to the formation. Fluid loss should be maintained @6 - 8 cc's API. NOTE: Since this fluid can also be used in the production interval, care should be taken to maintain recommended mud properties while drilling the intermediate interval. Production Interval: This interval will be drilled with the same fluid that was used to drill the intermediate interval. The fluid will be pre - treated with Bicarb and /or citric acid prior to drilling out the cement. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ 7 - 9 cc's API for this interval. Completion: The cement will be displaced with 3% KC1 brine for the completion phase of the program. Conqor 303 will be added to the drilling fluid that will be left between the 3 -1/2" completion string and the 9 -5/8" casing on the final circulation prior to cementing. Jim Dwyer Project Engineer /M -I SWACO Reference Wells: Beaver Creek #10, #11, #13, 19 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. 0 Marathon Oil Company I FE 3° Well Name: Beaver Creek # 18 Location: Kenai, Alaska. EXECUTIVE SUMMARY Our goal is zero spills and zero incidents and 100% compliance s _., while providing fluids and solids control services to Marathon Oil hMA\ Company. Mi The solids van will continue to assist in removal of LGS for minimizing mud weight and dumping and dilution of fluids. Disposal costs at G & I facility will be reduced with the use of solids van. Mi -- -�--- We expect to drill this well for a product cost of less than $40.04 per foot. We estimate the use of less than 7756 barrels to drill this well, not IFE withstanding any losses to the formation. 1 Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth Benchmark 1 Benchmark 2 Benchmark 3 Benchmark 4 Interval (ft) Fluid cost per Volume Usage foot 0 -2100' <$11.00ft < 2489bb1s 2100 — 7594' < $56.80 ft < 3516 bbls 7594 - 9244' < $43.24 ft < 838 bbls Total Project Avg. Max. No accidents or Targets for < $43.97 < 6843 bbls incidents for M -I No Spills Drilling Swaco personnel Interval • All ; Marathon Oil Company I FE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 13 3/8" 16" 2100' 2051' Gel /Gelex Spud Mud 8.6 — 9.2 5 $27,698 Screens 150/180 mesh Desilter Centrifuge Van 9 5/8" 12 -1/4" 7594' 7029' Flo -Pro w /SafeCarb < 9.5 9 $319,605 Screens 180 — 210 mesh Desilter Centrifuge Van 3 -1/2" 8 -1/2" 9244' 8679' Flo -Pro w /SafeCarb < 9.5 6 $77,093 Screens 230 — 210 mesh Desilter Centrifuge Van 3 1/2" 8 -1/2" Completion 9244' 8679' 3% KC1 8.50 3 $14,975 ➢ Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). ➢ Condition the mud prior to running casing for all intervals. ➢ Cost does include the use of 3% LoTorq and engineering ➢ Cost includes aggressive LCM prevention treatment • IFE Marathon O Comp Well Name: Beaver il Creek any # 18 IiIIF Location: Kenai, Alaska. FORMATION TOPS ESTIMATED PORE PRESSURES . ; ' ':Q Est. T.. . Sterling 5370' (MD) 8.1 Beluga LB 16 7694 / 6965' 3.3 — 9.4 Beluga LB 23 8229 / 7664' 3.3 — 9.4 Beluga LB 28 8724 / 8159' 3.3 — 9.4 TD 9244 / 8679' 3.3 — 9.4 • I Marathon Oil Company Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Product Usage Summary y orface Intermediate Production Completion Total Usage 12-1/4" 8 -1/2" 3 -1/2" M - WATE 703 251 954 M -I Gel 996 996 Asphasol 50 50 Supreme Gelex 31 31 Soda Ash 12 18 8 38 Caustic Soda 12 35 8 55 Conqor 404 10 4 14 Bicarb 18 8 26 Conqor 303 4 4 FloVis 211 34 245 Desco CF 10 10 Polypac UL 50 99 32 189 Sodium 25 35 17 8 85 Metabisulfite KC1 984 235 112 1331 KlaGard 24 8 32 Safecarb 2109 335 2444 GSEAL 211 211 MIX II 281 281 LoTorq 96 23 119 Defoam X 20 5 24 Fuel Surcharge 27920 . Engineer Service 5 9 6 3 23 • Marathon Oil Company 'FE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments BC #10 8.5 215 8.65 12 37 20 Spud in 2385 8.9 16 13 10.6 Condition mud for casing run w /Desco CF 6.125 3198 8.85 5 19 7.2 Drlg out, LOT 16.42 EMW, FloPro fluid 4516 9 6 21 7.6 Drlg 1318' in one day 5260 9 7 24 7.5 DrIg ahead 6440 9.25 8 29 7.1 Short trip - backreaming required 6906 9.3 9 27 7 Trip for bit - backream 7480 9.4 10 25 6.4 Trip in - OK 7788 9.5 10 25 6.3 Bit trip - backream through new hole section 8418 9.35 9 21 5.8 Trip in - OK drlg ahead 8587 9.4 9 19 6 DrIg ahead, trip for bit, backream new hole section 8854 9.55 9 20 6 @ T.D. POH for logs 8854 Spot 16 PPG pill on bottom prior to running casing BC #11 17.5 400 8.75 15 25 14 Spud in 1520 8.95 17 36 12.2 Drlg ahead 2202 9.4 15 25 9.4 TD of surface interval 12.25 2242 9.2 7 19 14.8 Drill out 3697 9.35 10 18 18.6 Drill ahead 4656 9.35 8 20 19.6 Drill ahead 5714 9.35 9 22 18.4 Short trip ok 5910 9.5 9 20 18.4 Adding SafeCarb to combat losses to formation 6620 9.4 10 20 15.4 Drlg ahead 6825 9.5 11 28 17.8 DrIg ahead, add Lubetex 7120 9.5 11 29 7 Drlg ahead control fluid loss with Pac 7260 9.6 12 31 7 Condition mud, run & cement casing 8.5 8036 9.35 10 26 6.8 Dril out drlg ahead 8652 9.4 10 24 7.4 DrIg ahead getting 1000 unit of gas 8931 9.55 9 22 8 At td - run logs • • Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Offset Well Information BC #13 16 0 8.5 19 34 15 Spud in 1013 8.75 8 25 20 Drlg ahead 2301 9.05 10 28 9.6 TD of surface interval 12.25 2360 8.95 12 21 7.2 Drill out 3456 9.25 12 19 7.4 Drill ahead 4353 9.5 11 23 6.9 Drill ahead 5486 9.2 22 21 6.6 Drill ahead 6360 9.2 10 25 7.2 Drill ahead 6477 9.3 11 25 7.4 Trip for bit, some tight spots 6861 9.2 11 23 6.6 Drill ahead, short trip, tight spots, some seepage losses 7255 9.3 14 24 5.4 Drill ahead maintain PPG with centrifuge van 7308 9.3 12 26 8 Drill to casing point, losing 3 - 5 bph to formaiton 8.5 7328 9.3 8 17 6.8 New mud, drlg ahead 7621 9.25 9 22 5.4 Drlg ahead 8046 9.3 10 24 5.4 Drill ahead, add 3% Lubetex 8542 9.4 9 25 5.7 Short trip, OK 9111 9.4 10 26 6.6 Increasing days, add Klagard 9343 9.6 10 27 6.8 Short trip, tight spots, increase PPG with barite 9728 10.1 11 31 5.8 Drlg ahead, circ out gas, increase PPG with barite 9873 10.35 13 29 5.6 Increase PPG after short trip, POH for MWD 10152 10.35 12 32 5.6 Drlg ahead, short trip OK 10500 10.4 13 30 6 Drlg to td, POH for logs, OK trip BC #19 16 0 8.5 18 18 13.8 Spud in 800 9 12 40 16 Drlg ahead 2517 9.5 22 26 10.5 TD of surface interval 12.25 2537 8.95 8 15 7.5 Drill out 3650 9.1 11 20 6.2 Drill ahead 4700 9.4 12 22 6 Drill ahead with 15 - 20 bph losses 6628 9.5 14 20 6.5 Drill ahead. Losses 5 - 10 bph. Use SafeCarb 250 instead of SC 10 7230 9.6 15 23 6.2 Solids Van running; losses slowed to 4 - 8 bph 7462 9.6 15 23 6.2 End of interval. Spot 90 ppb LCM pill from 4400 - 4700' 8.5 8056 9.6 15 20 6.4 FIT 12 ppg EMW. Increase LoTorq concentration 9068 9.6 15 23 5.6 TD of well • i Marathon Oil Company 'FE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Plans & Procedures COMMUNICATION — The Field Mud Engineer will communicate daily with the Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole problems, possible changes to the mud program, and proposals to use products not included in the mud program if they would aid in overall drilling performance. OFFSET WELL DATA — Please review Pad Data Sheets as part of prespud meeting and as drilling progresses thru various casing points. WHOLE MUD LOSSES TO FORMATION — Maintain proper bridging material concentration in the mud system while drilling the intermediate and production intervals. Loss circulation pills can vary in composition but should be a mixture of SafeCarb (40, 250, 500), MIX II, and GSEAL. GSEAL has proven very effective if wellbore breathing occurs. FLUID LOSS CONTROL — In the production interval the API fluid will be maintained at less than 6 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum. PolyPac UL will be used as the primary fluid loss reducer as this is an excape well. LSRV — When drilling with a FloPro fluid, the low shear rate rheology as measured with Brookfield rheomter should be maintained between 30- 40,000 cps. In addition to adequate additions of F1oVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. DRILL SOLIDS — MBT — The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. MIXING CONDITIONS — Whenever possible all treatments to the mud system should be made as pre -mix additions. Polymers and KC1 should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. CORROSION — Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +/- 2000 PPM. CORROSION — Sodium Metabisulfite additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm MYACIDE ADDITIONS — MYACIDE additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. CENTRIFUGE USAGE — The centrifuge should be used whenever drill solids become high and reduction of drill solids in the mud can be more economically done with centrifuging and whole mud dilution then just with dumping and diluting. WEIGHTING UP — All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 15,000 to minimize the need for barite additions. Monitor K+ concentration daily with the use of strips to verify proper inhibition from K+ ion. • • Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Interval Summary — 16" hole 0 - 2100' Drilling Fluid System Gel /Gelex Spud Mud Key Products MI Gel / Gelex / Soda Ash / Caustic Soda / MI WATE / PolyPac Supreme UL Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 150 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec. /qt) (1b. /100ft (ml/30min) ( %) 0 - 2100' 8.6 -9.2 60- 100 25 -35 NC - 12 +/ -9.5 <7% ➢ Treat drill water with Soda Ash to reduce hardness. ➢ Build spud mud with 20 — 25 PPB M -I Gel to +/- 100 seconds /quart funnel viscosity. ➢ Lower funnel viscosity to +/- 75 after gravel zone has been drilled. ➢ Add Gelex as needed to maintain sufficient viscosity for hole cleaning. ➢ Increase funnel viscosity if fill on connections begins to occur. ➢ Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. ➢ Add Sodium Metabisulfite to maintain a DO of < 3 PPM. ➢ Condition mud prior to cementing casing to reduce yield point and gel strengths. ➢ Estimated volume usage for interval — 2489 barrels. ➢ Estimated haul off volume — 4177 barrels. • • Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Hole Cleaning Index 16" Surface Mi SWACQ � - ' ®1995- 2 D:2100 ft 006WIL.L.C. surface IntervalBC 18 M W Operator:Marathon BC r:Maaratthon � 700 GPM VIRTUAL HYDRAULICS* Y �1DA u i Bit Sae:16 In Location:KenalPeninsula Date:11/25/2008 CountryAlaska Hole Cleaning Marathon BC 18 too — ROP 40ft/hr — ROP 80 ft /hr L■ ROP 120 ft /hr Poor Hofs61$aning — ROP 160 ft /hr - — ROP 200 ft /hr 0.75 X C' V — Fair Hole Cleaning C • 0.50 d . I V d O Good Hole Cleaning 0.25 .. Very Good Hole MN Cleaning ..._.. MEM a.. 0 400 500 600 700 800 900 Flow Rate (gal /min) i • FE -- Marathon Oil Company �' Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Interval Summary — 12-1/4" hole 2100 — 7594' Drilling Fluid System Flo -Pro Fluid Key Products Flo -Vis / PolyPac Supreme UL / KC1 / SafeCarb / LoTorq / GSeal / KlaGard / Conqor 404 / Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, gas, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (ppg) (cp.) (cps) (ml/30min) ( %) 2100 - 7594' < 9.5 8 — 12 30,000+ 7 - 9 < 7.5 +/- 5% ➢ Use one rig pit to drill out surface casing. In other rig pits, build new Flo -Pro fluid using the enclosed fluid formula. ➢ After drilling out surface casing, displace hole to Flo -Pro fluid prior to running leak off test ➢ If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. ➢ Estimated volume usage for interval — 3516 barrels. ➢ Estimated haul off volume — 4805 barrels. ➢ Condition mud prior to running 9 -5/8" casing. • • Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Virtual Hydraulics SnapShot 12 1 /4" Hole Mi SWACO. ©1995- 2006 -I L.L.C. BC 18 Intermediate Hole MD:7594 ft Operatord2farathon Mark 600GPM TVD:7029 ft We6Name: BC 18 VIRTUAL HYDRAULICS* SnapShot BitSize:12.25 Date: 11/25/2008 in Loealbn:KenaiPsninsula CountryAlaska Depth Geometry Angle Density Va Hole Clean Pressure Distribution (ft) MD/TVD Csg OD/ID (°) (b/gaD (fthnin) Index ( %) (RI (in) 0 45 90 9.4 9.8 9.8 0 120 240 VG G F P Bit =53.2 Ann= 6.2 DS= 40.6 I 500 UIUU 0 . 1000 ■ I IIIUU 1500 €), Milli Drilling Fluid 2 I° \ FLOPRO NT 2100 N 13.375 J " 1111 zosl zaoo Mud Weight 9.4 Iblgal 2 - System Test Temp 100 °F " 1111 Data Fbw Rate 600 galhnin 3000 . 1111111 Penetration Rate 80 ft/hr 3500 I "1111 Weight Speed 80 00 Weight ht Bit rpm on 10 r 4000 ill.. Bit Nozzles 13. 13.13 -13 -1 13 4500 11111 Pressure Losses Mod if ied Power Law Dril Sl ring 395 psi 5000 5500 .I'.. Motor 150 psi .111111 Bit OnlO ff 100 Psi 6000 a � .I,.. Surface Annulus 61 psi Surface Equip 25 psi 6500 1 U -Tube Effect 60 psi iiiiii TotalSystem 1559 psi 7000 ESD ECD +C u! �' 1111 Csg Shoe 9A6 9.62 9.78 7500 m 1 —1._ TD 946 9.63 9.79 75e4 _ 12.250 7029 - ES) E WM- Version 3.1 F35 • F70 (2002) - Ea) i ffi 8000 Fm..nn, IllEin I0 Red Vol % AM File -BC "DB F7000 0 • Aill! Marathon Oil Company Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Hole Cleaning Index 12 1 /4" Hole Mi NOC 01995.2006 M -I L.L.C. BC 18 Intermediate Hole MD: ft Operator:Marathon -./ 'Mark of u��.�.c. TVD:7029 ft Wei Name: BC 18 6000PM VIRTUAL HYDRAULICS* VRDH* BitSae:1225 n Loeatbn:KanaiPennsup D ate:1125i2008 CountryAlaska Hole Cleaning Marathon BC 18 too, i �. _..._ � .. — ROP 25 ft /hr r ; L - ROP 50ft /hr — ROP 75 ft/hr Poor Hole Cleaning ' - -- — ROP 100 ft/hr ,_ . 0.75 ROP 150 ft /hr d — RO P 175 ft/ht J C — Fair Hole Cleaning MEM ---�l■ 1 rrs 0.50 -1 U d I Good Hole Cleaning — o - - - - I I — 0.25 Very GLvd Hvle Cleaning f 0 1 _l 400 420 440 460 480 500 520 540 560 580 600 Flow Rate (gal /min) • • Marathon Oil Company 'FE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Hole Cleaning Hole cleaning efficiency is affected by hole size, washouts, drill pipe diameter, flow rate, rotary speed, mud Theology, wellbore trajectory, cuttings size, pipe reciprocation, % sliding, penetration rate, wellbore stability, mud solids and cuttings dispersion. Some of the industry "RULES OF THUMB "for rotation and flow are as follows: 1. Rotation effects: 16" hole: 150 +rpm (inhibitive fluid) 12 1/4" hole: 150 rpm (low side 120) 9 7/8" hole: 120 rpm (low side 100) 8 1/2" hole: 150 rpm (low side 100) 6 3/4" hole: 120 rpm (low side 80) 2. Flow rate: 16" hole: 800 — 1000 gpm (750 low side) 12 1/4" hole: 800 — 1000 gpm (700 low side) 9 7/8" hole: 550 — 650 gpm (500 low side) 8 1/2" hole: 400 — 500 gpm (350 low side) 6 3/4" hole: 250 — 300 gpm (200 low side) Also consider the following: 1. Good cuttings flow equates to good hole cleaning. The goal is to always keep the volume of cuttings in the hole manageable. This means no packing off or no tight hole. 2. When tripping, the hole must be clean enough for the BHA that is being used. The junk slot area affects how thick a safe cuttings bed can be. All bypass areas should be considered (stabilizers, bit, large OD tools, etc.). 3. For ERD hole cleaning applications bottoms up is generally deemed irrelevant. Cuttings do not move at the same rate as the fluid flow (saltation flow process). Often 4 or more bottoms up are required. Cuttings flow may not even start for at least 1.5 to 2.5 times bottoms up. When the hole is clean the cuttings returns over the shakers will drop off. Therefore, one should think in terms of rotating time not circulating time. 4. Always assume any tight hole conditions are related to poor hole cleaning. 5. Sweeps may not be effective. Experience does show that sweeps will be relatively ineffective unless the density is 2 — 3 ppg over the active density. • • Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. The LCM strategy for the BC 18 well will involve a mixture of SafeCarb 40, 250, and 500 along with Gseal and MIX II. Initial concentration will be 20 ppb SafeCarb 40, 10 ppb SafeCarb 250, and 10 ppb SafeCarb 500 with 5 ppb Gseal and 5 ppb MIX II. Mud engineer and company man on location can discuss modification to formula as conditions warrant. Loss circulation recipes should be adjusted as success or failure of previous formula is noted. MagmaFiber will be available on location but will not be used initially in any pills. Below is a summation of the LCM pills used on BC 19 where losses were excessive: Beaver Creek 19 LCM recap Depth Volume SafeCarb SafeCarb SafeCarb SafeCarb SafeCarb Gseal MIX MagmaFiber Safecarb NutPlug (ft) (bbl) 2 10 20 40 250 I1 500 2517 30 10 4500 50 10 10 10 4700 50 10 10 10 5 10 5000 Slugging 10 10 10 5 4 44 -4700 Spot40 20 20 20 20 5 5 7462 40 10 10 10 5 5 7462 50 15 15 15 5 15 5 7462 Dry Job 20 20 20 20 • • Marathon Oil Company 'FE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Interval Summary — 8 -1/2" hole 7594 - 9244' Drilling Fluid System Flo -Pro Fluid Key Products Flo - Vis / PolyPac Supreme UL / KC1 / SafeCarb F / LoTorq / SafeCarb / Caustic Soda / Conqor 404 / Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, gas kick, tight hole conditions Interval Drilling Fluid Properties ._ . Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (ppg) (cp.) (cps) (ml/30min) ( %) 7594 - 9244' < 9.4 10 — 14 30,000+ < 6 < 7.5 +1- 5% ➢ Reuse and reconditioning of intermediate fluid will greatly reduce overall drilling fluids costs. Mud engineer to discuss with company man procedures for accomplishing this. ➢ Pre -treat drilling fluid with Bicarb and/or citric acid prior to drilling cement. Aggressively treat out cement contamination as soon as feasible. Build additional dilution volume to maintain proper specifications. ➢ If running coals become a problem, treat with a 2 - 4 PPB addition of Asphasol Supreme. ➢ Estimated dilution volume for interval — 838 barrels. ➢ Estimated haul off volume — 1094 barrels. ➢ Condition mud prior to running 3 -1/2" casing. • • ■ Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Virtual Hydraulics SnapShot 8 1/2" Hole mi awer_ 01995 -2006 M- IL.L.C. BC 18 Production Interval MD:11244 tt Operatorlrlarathon *Ann, or ma LLc 400GPM TVD:8878 tt WeIName: BC 18 YIRTDALNYDRAIRICS" SnapShot' Besae: le Location:k DateA1R6R008 CountryAlanAlask Depth Geometry Angle Density Va Hole Clean Pressure Distribution (ft) MDITVD Csg OD11D (°) (blgaQ (fthrtil) Index ( %) (ft) (in) 0 45 90 9.2 96 10.0 0 140 280 VG 0 F P BR =22 Ann .113 DS. 66.2 0 • • 1000 1500 2000 __ Drilling Fluid - 2500 FLOPRO NT Mud Weight 92 blgal 3000 Test Temp 100 °F a System Data Flow Rate 400 gat(min /111111. Rarpe Rate 60 r a��. Rototary y Speed 100 rpm k, I"' Weight on BR 10 1000 lb 8 Bit Nozzles 0.778 in MIME Pressure Losses Modified Power Law r6 Strs 6.. 1 MW D ng 1 678 58 Psi • Motor 95 psi Bit 225 psi Bit On /Off 100 psi 7594 4_ \ 9.625 Annulus 120 psi . — 7029 . 8.830 1,1 Surface Equip 20 psi U -Tube Effect 42 psi 6500 - TotalSystem 1438 psi 9000 MI6 ESD ECD +Cut 9244 - , as90 - — Csg Shoe 925 9.50 9.60 9 9294 . TO 926 9.52 9.61 • : 8679 - ESD ' E Mil -version 0.1 F04°F70 (2092) - 6m r a F- : 10000 not ® K P11.. 018.N0 F70FLO • w Marathon Oil Company IFE Well Name: Beaver Creek # 18 Ille Location: Kenai, Alaska. Hole Cleanin g Index 8 1/2" Hole S'WAL ©1995-2006 M -I L.L.C. BC 18 Production interval MD:9244 ft Operator:Marathon Id.. or ra.i L.L.c TVD:8879 ft WelNama: BC 18 400 OPM VIRTUAL HYDRAULICS* VIIDH* Bit Sise: in Loeation:KenalPenlnsula Date:+1n8r2008 CountryAlaska Hole Cleaning too Marathon BC 18 ROP 50 ft /hr T j , — ROP 25 ft / — ROP75ft /hr I Peer HoIC Cleaning _ _ — ROP 100 ft /hr 1 – — ROP 125 ft/hr - i 0.75 - — ROP 150 ft/hr X d I 1 = 1 I , Fair Hole Cleaning 01 I C i 1 co 0. 50 as 1 - •le__Cleahing I ■ o { 2 r--�_ _ 0.25 I in I 1 0 1-- 1 I 400 420 440 460 480 500 520 540 560 580 600 Flow Rate (gal /min) p • • IFE Well Oil Company l Name: Beaver Creek # 18 Location: Kenai, Alaska. Interval Summary — Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well Beaver Creek #18 Volumes: Tubing Volume 4 -1/2" Tubing 68.43 barrels Annular Volume Casing x Tubir 465.75 barrels Tbg 3.50 x 2.76 x 9244 ft Open Hole x Tbg 120.23 barrels Total Annular Volume 585.98 Tubing Volume 68.43 Total Hole Volume 654.41 " 9.625 x 8.681 @ 7594 ft MD 4 — 8.500 x 3.50 @ 9244 ft MD Treatment Procedures. 1. After the 4 -1/2" tubing is run and the drilling fluid is circulated and conditioned for the cement job, circulate an additional 400 barrels of drilling fluid. 2. Add 1 drum of Conqor 303A for each 100 barrels of drilling fluid pumped (5 drums total) 3. After the 450 barrels of drilling fluid with Conqor 303A have been pumped downhole, begin the cement job. 4. This procedure will place corrosion control in the 3 -1/2" x 9 -5/8" annulus. . • Marathon Oil Company 'FE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. • • Marathon Oil Company 2 = ----'11FE Well Name: Beaver Creek # 18 — Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability PPE M -I BAR Weighting Agent *1 0 E M -I GEL Viscosity control *1 1 E GELEX Bentonite Extender 1 1 E FLOVIS Viscosifier 1 1 E DUAL -FLO Modified Starch 1 1 E POLYPAC Fluid Loss Reducer *1 1 E XCD Viscosifyer 1 1 E HEC Loss Circulation Material 1 1 E Safe -Carb F,M,C Bridging and weighting *1 0 E agent LO WATE Weighting agent *1 0 E Nut Plug Loss Circulation Material *1 1 E M -I Seal F, M, C Loss circulation Material *1 1 E Mix II F,M,C Loss circulation Material *1 1 E DESCO CF Dispersant 1 1 E SPERSENE CF Dispersant 1 1 E TANNATHIN Dispersant 1 1 E VENTROL 401 Surfactant ? ? ? SALT (Solar) Densifier 1 0 E BROMIDE (NaBr) & Densifier 1 0 F Brine Solution POTASSIUM Shale Inhibitor 1 0 g E CHLORIDE - Product Health and Safety Reference • • A. IFE Marathon Oil Company Well Name: Beaver Creek # 18 Location: Kenai, Alaska. HMIS HAZARD RATINGS Product Function Health Flammability PPE CAUSTIC SODA i Ikalinity control 3 0 X CAUSTIC POTASH pH Modifier 3 0 X SAPP Sodium Pyrophosphate *1 0 E SODA ASH A Ikalinity control 1 1 E SODIUM i Ikalinity control 1 0 i E BICARBONATE CITRIC ACID pH Adjuster 1 0 E MYACIDE 25G - Biocide 3 0 J DEFOAM X - Defoamer 1 1 J G -SEAL Sized graphite LCM 1 1 E KLA -GARD Shale Control agent 0 1 J LOTORQ Lubricant 1 1 J D -D CWT Detergent 2 1 J Condor 404 Corrosion Inhibitor 1 1 J SAFESURF W Drilling fluid additive 1 1 ` J sphasol Supreme Shale Inhibitor 1 1 J Soltex Shale Inhibitor 1 1 J SafeScav NA Oxygen Scavenger 1 1 J • • Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1 - Slight hazard 0 - Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A - Safety Glasses B - Safety Glasses, Gloves C - Safety Glasses, Gloves, Synthetic Apron D - Face Shield, Gloves, Synthetic Apron E - Safety Glasses, Gloves, Dust Respirator F - Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G - Safety Glasses, Gloves, Vapor Respirator H - Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I - Safety Glasses, Gloves, Dust and Vapor Respirator J - Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K - Air Line Hood or Mask, Gloves, Full Suit, Boots X - Consult your supervisor for special handling directions • • Marathon Oil Company IFE Well Name: Beaver Creek # 18 Location: Kenai, Alaska. Contacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga @marathonoil.com 907 565 -3032 907 231 -0663 Marathon Superintendent Will Tank Drilling Engineer wjtank @marathonoil.com 713 296 -3273 713 203 -8398 Marathon Jim Dwyer Project Engineer jdwyer @miswaco.com 907 646 -3233 907 317 -4556 MI SWACO Bob Myles Warehouse Manager rmyles @miswaco.com 907 776 -8722 907 252 -4218 MI SWACO Oliver Amend Field Engineer oamend @miswaco.com 907 283 -0895 907 398 -9474 MI SWACO (home) Jim Brown Field Engineer Miswacogdrl @gmail.com 907 398 -8500 MI SWACO John Nicholson / Drilling Foremen alaska_drilling @marathonoil 907 283 -1312 Roland Lawson .com Marathon Responsibilities ➢ MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M -I field engineers. ➢ Well progress will be monitored to look for any changes, which will improve the efficiency of the operation and / or avert trouble. ➢ Field Engineers will monitor and supervise product inventory to include re- palletizing any products for shipment to other locations at the end of the well. ➢ Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). ➢ Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. • • TRANSMITTAL LETTER CHECKLIST WELL NAME ,eC - PTD# os2OT Ars - Development Service Exploratory Stratigraphic Test Non - Conventional Well Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter • CHECK ADD -ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE 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 name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC \/ EXCEPTION 25.055. Approval to perforate and produce / inject is contingent upon issuance of a conservation order approving a spacing exception.. ' Ya cuh tN- t\ 0A Co c eocc:. 'vo Y., assumes the liability of any protest to the spacing exception that may occur. DRY DITCH Ali dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: Non - Conventional production or production testing of coal bed methane is not allowed Well for (name of well) until after (Company Name) has designed and 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. Rev: 7/1 32007 WELL PERMIT CHECKLIST Field & Pool BEAVER CREEK, BELUGA GAS - 80500 Well Name: BEAVER CK UNIT 18 Program DEV Well bore seg ❑ PTD #: 2081850 Company MARATHON OIL CO Initial Class/Type DEV / PEND GeoArea 820 Unit 50212 On /Off Shore On Annular Disposal ❑ Administration 1 Permit fee attached NA 2 _Lease number appropriate Yes 3 Unique well name and number Yes 4 Well located in a definedpool Yes Beluga Pool. 5 Well located proper distance_ from drilling unit boundary Yes 6 Welllocated proper distance from other wells No 1200' from BC-3rd. Spacing exception beingpre_pared. 7 Sufficient acreage available in drilling unit Yes 8 if deviated, is wellbore plat included Yes 9 Operator only affected party Yes 10 Operator has appropriate bond in force Yes Blanket Bond #5194234. 11 Permit can be issued without conservation order No Appr Date 12 Permit can be issued without administrative app roval Yes ACS 12/3/2008 13 Can permit be approved before 15 wait Yes 14 Welllocated within area artd_strata authorized by Injection Order # (put IO# in comments) (For NA • 15 All wells within 1 /4 mile area of review identified ( For service well only) NA 116 Pre- produced injector; duration of pre production less than 3 months_ (For service welt only) NA 17 Nonconven. gas conforms to AS31.05.0306,1.A),(l.2.A -D) NA 18 Conductor string provided Yes Engineering 19 Surface casing protects all known USDWs Yes '20 CMT v_oi adequate to circulateonconductor & surf csg Yes 21 CMT vol adequate to tie -in long string to surf csg No 22 CMT will cover all known productive horizons Yes 23 Casing designs adequate for C, T, B_&_ permaf Yes 24 Adequate tankage_ or reserve pit Yes Rig equipped with steel pits. No reserve pit planned. All waste to approved disp osal well(s). 25 lf_a re- drill, has a 10-403 for abandonment b een approved NA 26 Adequate wellbore separationproposed Yes Proximity analysis performed; Traveling cylinder path calculated. 27 lfdiverter requited, does it meet reg ulations Yes Appr Date 28 Drilling fluid_ program schematic & equip list adequate Yes Maximum expected formation pressure 9.4 EMW. Planned MW up to 9.5 ppg or as needed. TEM 12/3/2008 29 BOPEs,_do they meet regulation Yes .),,,f(----, 30 BOPE_press rating appropriate; test to_(put prig in_comments) Yes MASP calculated at 2334 psi w /30% mud -70% gas. VYith gas only_ 3372 psi. 3000 psi BOP test appropriate._ 31 Choke_ manifold co mplies w/API RP -53 May 84) Yes 32 Work will occur without operation shutdown Yes Completion to be rformed without rig pe g per usual practice. 33 is presence of H2S gas pro bable No H2S is not known in CI gas wells. Rig has sensors and alarms. 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures NA No known H2S co ncerns. Geology 36 Data_presented on potential overpressure zones Yes Appr Date 37 Seismicanalysis of shallow gas_zones NA ACS 12/3/2008 38 Seabed condition survey (if off - shore) NA 39 Contact name /phone for weekly_progress reports [exploratory only] Yes Will Tank - 713 -296 -3 273. Geologic Engineering Public CO for spacing excepetion is being prepared for Commissioners signature. Commissioner: Date Comm D a t e , Date • Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process • but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically • organize this category of information. • Ani MARATHON BC 18 SEC 34 T7N R10W SM January 18, 2009 — February 5, 2009 ti { • .4'6 1 el., is 4 ' , ■ ' 7' ,..4 ',..,.f ;..:-.' 7.. , i 1 ' t r f Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist El 1 EPOCH III 1 s 11 * MARATHON OIL COMPANY BC -18 • TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 2 1.1. EQUIPMENT SUMMARY 2 1.2. PERSONNEL 2 2. GENERAL WELL DETAILS 3 2.1. OBJECTIVES 3 2.2. WELL RESUME 3 2.3. HOLE DATA 3 3. GEOLOGICAL DATA 4 3.1. SAMPLING PROGRAM AND DISTRIBUTION 14 4. DRILLING DATA 15 4.1. DAILY ACTIVITY SUMMARY 15 4.2. MUD RECORD 2 4.3. BIT RECORD 2 9 4.4. DRILLING PROGRESS CHART 30 5. DAILY REPORTS 31 • Enclosures: 2 "/100' Formation Log (MD and TVD) 2 "/100' Drilling Dynamics (MD and TVD) 411 Ell EPOCH MARATHON OIL COMPANY BC -18 • 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Comments Downtime Low gas readings are pervasive due to the Mounted In immediate mud. pre-shearing all s14' straight of Standard Air Drive Trap return mud. Falls 14" straight Ditch Gas Possum Belly; FID Total Hydrocarbon down through an air gap as it Analyzer And Chromatograph exits the flowline and impacts the fluid of a tiny possum belly in a wide splash, before reaching the qas trap. Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On 0 Drum Shaft Pump stroke counters Externally Mounted Magnetic Proximity 0 Sensor Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque Hydraulic Pressure Cell 0 Top drive rotary (RPM) Externally Mounted Magnetic Proximity 0 Sensor Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From 0 Flow Paddle Pit volumes Ball and probe sensor 0 • Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Mud Engineer's work station HP COMPAQ 0 Living quarter's work station HP COMPAQ 0 Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL BC -18 Unit Number: ML006 Years Days Sample Catchers/ Days Days Mudloggers Experience at Trainees at Technician at well well well Craig Silva 31 26 Tim Rieland 12 Steve Forrest 1 Ralph Winkelman 18 26 Nate Chamberlain 12 • El EPOCH 2 M MARATHON OIL COMPANY BC -18 • 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of BC -18 is to drill and log a Multi Zone Development Gas well in the Beaver Creek Unit with a minimum of hole problems or other concerns. An EXCAPE completion will be performed. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: BC -18 Field: Beaver Creek Unit County: Kenai Borough State: Alaska Company Representatives: John Nicholson Mitch Burns Rowland Lawson Dan Byrd Location: 1055' FNL, 1628' FWL, Sec 34 T7N R10W SM, X= 317441.965, Y= 2434136.985 Classification: Multi Zone Development Gas API #: 50 — 133 — 20584 — 00 — 00 Permit #: 208 - 185 Activity Code: (WBS #s) DD.08.18263.CAP.DRL Rig Name / Type: Glacier #1 / Land / Double Elevation: Ground, RKB 159.90'GL, 181.62' RT Primary Targets: / Target Depths: Beluga: LB20 (8008', 7453.35' TVD), Beluga: LB21 (8071', 7516.27' TVD) Primary Targets: / Target Depths Beluga: LB25 (8403', 7847.94' TVD), Beluga: LB26 (8509', 7953.86' TVD) P rimary Targets: / Target Depths Beluga: LB28 (8676', 8120.75' TVD), Beluga: LB29 (8813', 8257.68' TVD) Spud Date: January 18, 2009 Total Depth 9244' Total Depth Formation: Beluga Total Depth Date: February 5, 2009 MWD Company: / Tools Run: Baker Hughes Inteq / Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M -I Drilling Fluids Logging Companies: Weatherford Wireline Services: Quad -Combo on wireline, MFT on wireline. 2.3. HOLE DATA BC -18 Hole Maximum Depth T.D. Mud Deviation Shoe Depth F.I.T. g Casing Section MD SSTVD Formation PPg)t ( inc) MD SSTVD EMW 16" 2107' 1872.60' Sterling 9.45 28.35 13 3/8" 2097' 1863.81' 12.0 12.25" 7623' 6887.29' Beluga 9.5 3.36 9 5/8" 7612' 6876.31' 12.0 8 1 /" 9244' 8506.92' Beluga 9.5 1.20 3 %" 9229.89 8492.81' EXCAPE g Completion • [I EPOCH 3 (M) MARATHON OIL COMPANY BC -18 • 3. GEOLOGICAL DATA Tuffaceous Claystone/Tuffaceous Siltstone/Volcanic Ash (2107'- 2500') = all sediment derived from volcanic ash, with significant fraction of discernible microshards and sand -sized macroshards; medium light gray to medium gray; note that the differentiated volcanic ash and much of the tuffaceous sandstone matrix has higher lightness values to light gray and very light gray; note common faint light greenish gray, Tight bluish gray and light brownish gray secondary hues; note that tuff claystone with bluish gray hues is often more argillaceous, more homogeneous in overall appearance and slightly firmer than the other claystones; soft to slightly firm or slightly brittle; mostly hydrophilic, partially soluble, generally sticky, with moderate adhesiveness and poor to moderate cohesiveness; most claystones are structureless and massive, but spotty pieces are shaly in part, with poorly developed imperfect fissility; clayey to silty to ashy to various soft matte and mixed textures; often mottled in part; earthy lustre; occasionally microsparkly lustre when glass shards reflecting back light; note trace pieces of volcanic ash with faint remnant textures of vitriclastic origin, that have survived various stages of reworking and re- deposition; tuff claystones are the pervasive supporting material of soft sandstone and abundant clay has "floating" sand grains; minor sandstone with coal laminations. Sand / Sandstone/Tuffaceous Sandstone (2107'- 2600') = medium gray to medium dark gray with faint to strong light olive gray to olive gray to greenish gray secondary hues; locally transitions to dominant olive gray with medium gray secondary hues; generally homogeneous overall appearance; occasionally slight upward shifts in lightness value when soluble supporting matrix becomes stickier and ashier; generally appears as a "dirty, greenish" pepper combined with grayish salt; overall greenish coloration is derived from presence of abundant greenstone rock fragments and associated minerals; also note trace to locally common very distinctive orange to reddish orange volcanic lithic fragments that strongly contrast against the overall gray and greenish gray bulk colors; range from very fine lower to trace conglomerate; mostly moderately to moderately well sorted in fine lower to medium lower group; very large fraction is fine • upper, just below the medium cutoff; spotty very fine consists almost entirely of glass shards winnowed from volcanic ash, and often appears to be a separate mode; coarse and large sand grains increase in the basal zones of massive sands; very dominant angular to subangular and discoidal to subdiscoidal, but note that percentage of rounded grains increases as sorting improves; very abundant disaggregated grains; mostly tuff clay and volcanic ash matrix supported when visibly consolidated, but trace pieces of cleaner - looking calcite and /or silica cemented sandstone, and more pieces with complex mix of various types of matrix material and grain cementing mineralization. Sand /Sandstone/Tuffaceous Sandstone (2107'- 2600') = disaggregated grains and consolidated pieces all compositional graywacke ( >30% lithics); estimate 30 -60% quartz and volcanic glass; trace feldspar, 5 -15% cryptosilica (chalcedony, chert) and other undifferentiated silica, 30 -65% diverse lithics, mafic minerals and many non - identified multi - colored minerals; lithics fraction strongly dominated by grayish green, medium to dark green and variegated green low grade metamorphic greenstone rock fragments and associated mineral assemblages (especially including chlorite); very prominent lesser fraction of medium gray to dark gray to grayish black medium grade metamorphic argillite - phyllite rock fragments; most black and other darker colored mafic minerals are not easily identified, but augite, magnetite and biotite are discernible; note many non - differentiated slightly colored "blackish" minerals; note that the diversity and relative abundance of many different multi - colored clasts appears to be a significant characteristic; note many orange to orangish red to red volcanic rock fragments, and well distributed traces of greenish yellow epidote, yellow citrine, colorless zircons, transparent smoky quartz, rose quartz, very pale purple quartzite, transparent colorless quartz with mossy particles, green chlorite, near transparent pale brown to yellowish brown minerals, yellowish mica. El EPOCH 4 M MARATHON OIL COMPANY BC -18 Tuffaceous Claystone /Tuffaceous SiltstoneNolcanic Ash /Tuffaceous Shale (2500'- 3000') = all soft sediments appear derived from volcanic ash; note generally abundant discernible microshards and larger shards; medium light gray to medium gray; nearly all volcanic ash and most tuffaceous sandstone has lightness values to light gray and very light gray; note common faint light greenish gray, light bluish gray and light brownish gray secondary hues; note that tuff claystone with bluish gray hues is often more argillaceous, more homogeneous, overall appearance, and often slightly shaly; soft to slightly firm or slightly brittle; dominant hydrophilic, partially soluble, with moderate adhesiveness and poor to moderate cohesiveness; clayey to silty to ashy to soft matte and mixed textures; occasionally mottled; some volcanic ash with remnants of original vitriclastic fabric despite reworking; earthy to microsparkly lustre. Sand (2820'- 2920') = medium to medium light gray with a light olive green secondary hue, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, medium to dark bluish green and trace pale rose; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; disaggregated; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (2920'- 3040') = light to medium gray with light bluish gray and light brown secondary hues; soft to slightly firm; very sticky at times; irregular to platy and blocky cuttings with occasional pdc bit "scooped" appearance; silty to clayey texture; dull, earthy to waxy luster; hydrophilic; moderate to very soluble; slight to moderately expansive when hydrated; fair to good adhesiveness and cohesiveness; non to slightly calcareous; trace very dark brown to black micro -thin carbonaceous laminations and particles. Sand /Sandstone (3030'- 3100') = medium to medium light gray with abundant varicolored grains, dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, trace medium to dark bluish green, pale rose, rust and translucent yellowish green; fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderate to moderately well sorted; disaggregated with trace medium gray, salt and pepper sandstone; fine grain; friable to very firm; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (3100'- 3170') = medium to medium light gray with light brownish gray secondary hues; soft to firm; irregular to common pdc bit action " scooped" shaped cuttings; silty to clayey texture; dull to slightly waxy luster; moderate to very soluble; fair to good adhesiveness; good cohesiveness; trace dark brown to black, micro -thin carbonaceous laminations and particles. Tuffaceous Claystone/Tuffaceous siltstone (3170'- 3240') = medium to medium light gray with light brownish gray secondary hues; very firm; irregular to common pdc bit action " scooped" shaped cuttings; silty to clayey texture; dull to slightly earthy luster; moderate to very soluble; fair to good adhesiveness; good cohesiveness; trace light gray siltstone; firm to friable; commonly grades between sandy siltstone and silty sandstone; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles. Sand /Sandstone (3250'- 3320') = medium to medium light gray with abundant varicolored grains, dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, trace medium to dark bluish green, pale rose, rust and translucent yellowish green; fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderate to moderately well sorted; disaggregated with common light gray ashy /clayey supporting matrix; non calcareous; very soluble; trace medium gray sandstone; firm to friable; fine grain; non calcareous; occasionally grading to silty sandstone /sandy siltstone. Tuffaceous Claystone/Tuffaceous Siltstone (3280'- 3400') = medium to medium light gray with light brownish gray secondary hues; soft to firm; silty to clayey to slightly gritty texture; dull, earthy to slightly waxy and sparkly luster; moderately soluble; fair to good cohesiveness; fair adhesiveness; non calcareous. Ell EPOCH 5 M MARATHON OIL COMPANY BC -18 • Sand /Sandstone (3340'- 3480') = medium to medium light gray with abundant varicolored grains, dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, trace medium to dark bluish green, pale rose, rust and translucent yellowish green; fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderate to moderately well sorted; disaggregated with common light gray ashy /clayey supporting matrix; non calcareous; very soluble. Sand /Sandstone/Tuffaceous Sandstone (3440'- 3560') = medium to medium light gray with abundant multicolored grains, dominantly clear to translucent quartz and volcanic glass, light gray, medium to dark gray, black, trace light greenish gray, medium bluish green, pale rose and rust; fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderately well sorted; disaggregated with common light gray to grayish white ashy /clayey supporting matrix; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (3500'- 3580') = medium to medium light gray with Tight brownish gray secondary hues; soft to firm; irregular to shapeless, globular cuttings; silty to clayey to slightly gritty texture; dull to earthy lustre; very soluble; moderately expansive when hydrated; poor to fair cohesiveness and adhesiveness; clay acts as supporting matrix for loose sand non calcareous. Sand /Sandstone/Tuffaceous Sandstone (3560'- 3680') = medium to medium light gray with abundant multicolored grains, dominantly clear to translucent quartz and volcanic glass, light gray, medium to dark gray, black, trace light greenish gray, medium bluish green, pale rose and rust; fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderately well sorted; disaggregated with common light gray to grayish white ashy /clayey supporting matrix; non calcareous. Sand /Sandstone/Tuffaceous Sandstone (3620'- 3740') = medium to medium light gray with abundant varicolored grains, dominantly clear to translucent quartz and volcanic glass, light to medium gray dark gray to black, trace medium to dark bluish green, pale rose, rust and translucent yellowish green; fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderate to moderately well sorted; disaggregated with trace medium gray, salt and pepper sandstone; fine grain; friable to very firm; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (3700'- 3820') = medium to medium light gray with light brownish gray secondary hues; soft to firm; irregular to shapeless, globular cuttings; silty to clayey to slightly gritty texture; dull to earthy lustre; very soluble; moderately expansive when hydrated; poor to fair cohesiveness and adhesiveness; trace dark brown to black micro -thin carbonaceous laminations and particles. Sand /Sandstone/Tuffaceous Sandstone (3760'- 3880') = medium to medium light gray with abundant multicolored grains, dominantly clear to translucent quartz and volcanic glass, light gray, medium to dark gray, black, trace light greenish gray, medium bluish green, pale rose and rust; fine lower to coarse lower, dominantly fine upper to medium lower; angular to sub angular to sub rounded; moderate developed sphericity; moderate sorting with no dominant fraction; disaggregated; apparent soluble tuff clay matrix; some scattered sandy clay; dominant medium grain support; composed of 70% quartz and other silicates, 30% lithics. Sand /Sandstone (3840'- 3960') = very light gray to light gray with some white to medium light gray; clastic size ranges from medium to upper fine grading to coarse upper with medium grain sand; sub angular to sub rounded to rounded at lower sections; moderate to poorly developed sphericity; moderate sorting; abundant disaggregated; apparent soluble, easily hydrated tuff clay /ash matrix; loosely attached with hard dense cryptocrystalline quartz with non - differentiated silicate minerals and lithic fragments; overall 70% quartz and other silicates, 30% lithics. Tuffaceous Claystone (3940' - 4020') = very light gray to light gray; soft; sectile to malleable; flexible to slight elastic; lumpy to clumpy in part; mushy to pasty; very tacky; slightly cohesive; very adhesive; earthy fracture; massive habit; moderate earthy luster; clayey texture; composed of 80% clay with ashy tuff with tuffaceous silt. • Li EPOCH 6 M MARATHON OIL COMPANY BC -18 • Sand /Sandstone (4010' - 4120') = very light gray to gray to white; clastic size ranges from coarse to medium upper in sandstone and fine to very fine lower in sands; angular to subangular to rounded; fine to coarse; dominantly fine upper to medium upper; both grain and matrix supported; ashy clayey matrix support with some weak calcite and /or silica cementation; composed of quartz and lithics. Tuffaceous Claystone /Siltstone (4050' - 41801 = very pale grayish brown to very pale gray; very soft to brittle; crumbly to sectile; partially flexible; lumpy to clumpy; various consistency and tenacity; poor cohesiveness; poor to moderate adhesiveness; massive to trace sub - nodular; earthy luster; silty to ashy to clayey texture; both massive and very thinly bedded tuffaceous silts and clays with very thin carbonaceous laminae. Sand /Sandstone (4130' - 4250') = light gray to very light gray; clastic size ranges from medium upper to fine grain and changing to coarse grains; angular to sub - angular and predominantly sub - rounded; moderately developed sphericity; moderate sorting; dominant disaggregated consolidated pieces mostly have soluble, fragile clay and silt matrix, minor calcite cemented sandstone; common sandstone with complex grain and matrix support; soft siltstones are interbedded with the sandstone; composed of quartz with minor lithic fragments and grains of chalcedony, chert, argillite and greenstones; non calcareous; minor clastic coal fragments. Tuffaceous Claystone /Siltstone (4190'4300') = light gray to medium gray with grayish olive hues; crumbly to slightly crunchy; irregular earthy amorphous fractures; platy cuttings habit; resinous dull earthy texture; overall grading of carbon materials; interbedded with thicker tuffaceous siltstone with minor black carbon fragments; no bleeding gas in sample. Sand (4340' - 4440') = light to light medium gray; individual grains dominantly clear to translucent quartz and volcanic glass; trace medium to dark gray, black, pale rose, rust and medium greenish gray to bluish green; angular to subangular; very fine upper to coarse upper, dominantly fine upper to medium upper; poorly sorted; disaggregated; trace dark brown to black carbonaceous material/ coal. 1111/ Sand /Conglomeratic Sand (4400' - 4520') = light to medium light gray overall with abundant multicolored grains, dark gray to black, dusky red to rust, pale rose, light to medium bluish green and light to medium gray to greenish gray; angular to subangular; very fine upper to coarse upper, dominantly medium upper to lower; poorly sorted; trace to common light gray to grayish white ashy /clayey supporting matrix common; note continued safe carb contamination. Tuffaceous Claystone/Tuffaceous Siltstone (4440'- 4560') = medium bluish gray to brownish gray with medium to dark brown secondary hues; soft to slightly firm, occasionally pulverulent; irregular shaped cuttings; silty to clay to slightly gritty texture; dull, earthy to slightly waxy and occasionally sparkly luster; moderate to very soluble and expansive; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles. Sand/Tuffaceous Sandstone (4520' - 4640') = light to medium light gray overall with abundant multicolored grains, dark gray to black, dusky red to rust, pale rose, light to medium bluish green and light to medium gray to greenish gray; angular to subangular; very fine upper to coarse upper, dominantly medium upper to lower; poorly sorted; disaggregated; trace to common very light gray to grayish white ashy to clayey supporting matrix; non to slightly calcareous; trace dark brown to black carbonaceous material /coal; present as very thin beds; no outgassing. Tuffaceous Claystone/Tuffaceous Siltstone (4600'- 4740') = medium brownish gray to light brownish gray with dark brown secondary hues; soft to slightly firm, occasionally pulverulent; irregular shaped cuttings; silty to clay to slightly gritty texture; dull, earthy to slightly waxy and occasionally sparkly luster; moderate to very soluble and expansive; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles; abundant light gray siltstone commonly grades between a silty sandstone and a sandy siltstone; very fragile; non calcareous. Ell EPOCH M MARATHON OIL COMPANY BC -18 Sand /Sandstone (4680'- 5100') = light medium gray to medium gray overall; locally to light gray; pervasive faint to locally strong light olive gray secondary hue; note common "slightly dirty" salt and pepper appearance; very fine lower to very coarse lower; dominant size range is always shifting, but mostly fine lower to coarse lower and very dominant at fine upper to medium upper; moderate to poorly sorted overall, but locally can be moderately well sorted; dominant angular to subangular and subdiscoidal to discoidal with constant small fraction of more rounded and spherical grains; note that roundedness appears to improve overall as grains become coarser; very dominant disaggregated grains; obvious tuffaceous clay matrix material going into solution most consolidated is tuff clay - volcanic ash supported, minor fraction is both grain and matrix supported by calcite and silica cementation; note other group of consolidated sandstone has complex inter -grain mix of tuffaceous clay - silt -ash, calcite and silica mineralization, devitrified ash, cryptosilica, fine powdery calcite and silica, and various alteration and weathering products. Sand /Sandstone (4680'- 5100') = note only spotty compositional graywacke ( >30% lithics); very dominant sublithic arenite to lithic arenite; estimate 70 -85% quartz and volcanic glass, trace feldspar, 5- 15% cryptosilica (chalcedony, chert, jasper) and non - differentiated silica, 15 -30% diverse lithics and mafic minerals; note many multicolored minerals are not readily identifiable; note that overall light olive hues are derived from relatively abundant greenstone rock fragments; lithics fraction dominated by grayish green, medium to dark green and variegated green low grade meta rock fragments and associated minerals, especially chlorite; prominent lesser fraction of medium gray to dark gray to grayish black medium grade meta argillite - phyllite rock fragments; less abundant than the argillite - greenstone groups are many different lithics and minerals from diverse sources; note well distributed distinctive trace (and greater amounts of greenish yellow epidote, yellow citrine, colorless zircons, transparent smoky quartz, rose quartz, very pale purple quartzite, transparent colorless quartz with mossy particles, green chlorite, near transparent pale brown to yellowish brown minerals, "yellowish - goldish" mica (possibly phlogopite) and several deep black resinous - vitreous non - carbonaceous minerals; 65 -70% of the quartz is colorless to very pale gray to very pale brown and translucent, 30 -35% of the quartz and nearly 100% of the volcanic glass is colorless and transparent; note trace sandstone with pale green colored supporting matrix that appears to alteration product. Tuffaceous Claystone/Tuffaceous Siltstone/Volcanic Ash (4740'- 5400') = nearly all soft to firm sedimentary rocks are derived from volcanic ash, and have prominent fractions of discernible microshards and sand -sized macroshards; medium light gray to medium gray; note that most of the differentiated volcanic ash and some of the more homogeneous tuffaceous claystone has higher lightness values ranging to light gray and very light gray; note common faint light greenish gray, light bluish gray and light brownish gray secondary hues; some tuffaceous claystone (especially the variation with light bluish gray hues) is distinctly argillaceous, more homogeneous in overall appearance and slightly firmer than the other claystones; overall all the tuffaceous lithologies are soft to slightly firm or slightly brittle; all softer clays appear hydrophilic, partially or entirely soluble, usually very sticky, with moderate to good adhesiveness and poor to moderate cohesiveness; most claystones are structureless and massive, but spotty pieces are shaly in part, with poorly developed imperfect fissility; tuffaceous siltstones are generally firmer and more brittle than the claystone and very often display both sandy and clayey zones or irregular areas in individual cuttings pieces; some of the tuff is very sandy in part, with abundant "floating" sand grains; note wide range of textures from clayey to silty to ashy to various soft matte and mixed texture; many pieces are often mottled in part; earthy to occasionally microsparkly lustre when glass shards reflect back the illuminated light; note trace pieces of volcanic ash have faint remnants of an original air fall vitriclastic texture that has survived various stages of reworking and re- deposition; volcanic ash - derived sediment is the pervasive inter -grain material of most sandstone; occasional to common occurrence of tuffaceous rocks with thin coal laminations and particles. Sand /Conglomeratic Sand /Sandstone (5360'- 5500') = medium to medium light gray overall with abundant multicolored grains throughout, dominantly clear to translucent quartz and volcanic glass, light to medium translucent gray, medium to dark gray to black, trace pale rose, dusky red to rust, orange, bluish green and yellowish green; very fine upper to very coarse lower, dominantly medium; angular to subrounded, dominantly subangular; poorly sorted; dominantly disaggregated with trace coarse sandstone; some multicolored lithics display yellowish brown to tan colored non calcareous cementation. Eli EPOCH 8 M MARATHON OIL COMPANY BC -18 • Tuffaceous Claystone/Tuffaceous Siltstone (5440'- 5580') = medium bluish gray to yellowish gray with brownish gray secondary hues; soft to slightly firm; fragile to pulverulent; irregular shaped cuttings; silty to clayey to slightly gritty texture; dull, earthy to occasionally sparkly luster from ash component; hydrophilic; soluble; slight to moderately expansive when hydrated; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles; trace thin coal beds no visible outgassing. Sand /Conglomeratic Sand (5520'- 5640') = light to medium light gray overall with abundant multicolored grains, dark gray to black, dusky red to rust, pale rose, light to medium bluish green and light to medium gray to greenish gray; angular to subangular; very fine upper to coarse upper, dominantly medium upper to lower; poorly sorted; disaggregated; trace to common very light gray to grayish white ashy to clayey supporting matrix; non to slightly calcareous; trace dark brown to black carbonaceous material /coal, primarily present as very thin beds. Coal /Carbonaceous Shale /Carbonaceous Material (5560'- 5680') = black with dark brown secondary hues; very firm to hard; brittle at times; blocky to sub - blocky; planar fracture is dominant, with trace conchoidal and birdeye fracture; slightly gritty texture; earthy to slightly resinous luster; rare trace visible outgassing bubbles. Sand /Conglomeratic Sand /Sandstone (5640' - 58001 = medium to medium light gray overall with abundant multicolored grains, dominantly clear to translucent quartz and volcanic glass, light to medium translucent gray, medium to dark gray to black, trace pale rose, dusky red to rust, orange, bluish green and yellowish green; very fine upper to very coarse lower, dominantly medium; angular to subrounded, dominantly subangular; poorly sorted; dominantly disaggregated; common light gray ashy /clayey supporting matrix; very soluble; non calcareous; trace thin coal /carbonaceous shale beds. Tuffaceous Claystone/Tuffaceous Siltstone (5720'- 5880') = medium brownish gray to yellowish gray S with brownish gray secondary hues; soft to slightly firm; fragile to pulverulent; irregular shaped cuttings; silty to clayey to slightly gritty texture; dull, earthy to occasionally sparkly luster from ash component; hydrophilic; soluble; slight to moderately expansive when hydrated; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles. Sand /Conglomeratic Sand /Sandstone (5820'- 5980') = light to medium light gray overall with abundant multicolored grains; dominantly clear to translucent quartz and volcanic glass, light to medium translucent gray, medium to dark gray to black, trace pale rose, dusky red to rust, orange, bluish green and yellowish green; very fine upper to very coarse upper, dominantly medium; angular to subrounded, dominantly subangular; poorly sorted; dominantly disaggregated; trace ash supported sandstone pieces; multicolored; white ash cement; non calcareous. Sand/Tuffaceous Sandstone /Conglomeratic Sand (5900'- 6040) = medium to medium light gray overall with abundant multicolored grains, dominantly clear to translucent quartz and volcanic glass, gray to black, dusky red to rust, pale rose, light to medium bluish green and light to medium gray to greenish gray; angular to trace subrounded, dominantly subangular; fine lower to rare very coarse upper, dominantly medium; poorly sorted; dominantly disaggregated with trace ash supported sandstone; very fragile; non calcareous. Sand /Sandstone/Tuffaceous Sandstone /Conglomeratic Sand /Conglomerate (6040'- 6235') = note that cuttings samples are very colorful due to the diverse conglomeratic sources that introduced many lithics and minerals in contrasting red - orange - yellow -pink, brown - black -dark gray, green - blue -light greenish gray, clear -very pale gray and white - "off white" color groups; the broad palette of colored grains /clasts represents a distinctive characteristic; the colored grains are contrasted against a generally homogeneous medium gray to medium light gray bulk sample color; locally the bulk sample will be patchy white and gray combination as the percentage nearly white volcanic ash and tuffaceous sandstone increases. • El EPOCH 9 "Q MARATHON OIL COMPANY BC -18 • Sand / Sandstone/Tuffaceous Sandstone /Conglomeratic Sand /Conglomerate (6040'- 6235') = continued sample colors as described above; very fine upper to pebble; dominant medium lower to coarse upper; very fine -fine fraction may be separate mode; very evident fining upward in massive sections; moderately in uppermost zones where medium lower and finer grains are dominant; wide range of shape and roundedness; fine sand is nearly all angular to subangular, while very coarse to conglomeratic clasts are often rounded and spherical; sandstone is both matrix and grain supported by complex group of ash derived clay -silt, glass shards, devitrified ash and weak calcite - silica cementation; compositional graywacke to borderline lithic arenite. Sand /Conglomeratic Sand /Sandstone (6220'- 6350') = light to medium light gray overall with abundant multicolored grains, dominantly clear to translucent quartz and volcanic glass, Tight to medium translucent gray, medium to dark gray to black, trace pale rose, dusky red to rust, orange, bluish green and yellowish green; very fine upper to very coarse upper, dominantly medium; angular to subrounded, dominantly subangular; poorly sorted; dominantly disaggregated with trace multicolored tuffaceous sandstone; fine to medium grain; white ash supporting matrix; fragile and pulverulent; non calcareous; continued safe carb mud additive contamination. Sand /Conglomeratic Sand/Tuffaceous Sandstone (6350'- 6450') = note overall color is darker with sharp drop in multicolored grains; dominantly clear to translucent quartz and volcanic glass, with an increase in medium to dark gray to black, decreasing multi colored lithic gains as previously described; fine lower to very coarse upper, dominantly medium lower to upper; angular to occasionally subrounded dominantly subangular; poorly sorted; dominantly disaggregated with scattered white ash cemented pieces; fragile to pulverulent; slight to moderately calc; also note increasingly pervasive faint yellowish gray secondary hue. Sand /Sandstone /Tuffaceous Sandstone /Conglomeratic Sand /Conglomerate (6450'- 6580') = several subtle shifts in characteristics: - overall bulk color is very slightly darker, medium gray to dominant medium dark gray, -olive gray secondary hue becomes pervasive and locally is the primary color, -faint yellowish • gray hue disappears, -the diversity of colored grains (described after 6220') again increases,- orange red volcanic fragments increase again and the individual fragments are larger size, - patchy "off' white clumps of coarse tuffaceous sandstone with colorful grains are common to locally abundant and there are even trace clumps of tuffaceous conglomerate, - overall grain size increases significantly to dominant coarse upper to granule (conglomerate), some of the clumps of sandy volcanic ash also have mottled clay streaks, -more very coarse to conglomerate clasts are more angular subangular than rounded, - samples become less well sorted and there is no obvious fining upward. Sand /Sandstone/Tuffaceous sandstone /Conglomeratic Sand /Conglomerate (6580'- 6700') = note slight progressive changes in characteristics after 6580': lithics are becoming less diverse and less colorful overall, - sorting is generally improving as dominant grain size range trends downward, - overall color is becoming grayer with medium gray dominant, -olive gray coloration diminishing, -faint yellowish gray secondary hue returning, but patchy, - tuffaceous sandstone is finer, the matrix ash is more "off white" than white and some has very pale greenish, bluish and yellowish brown hues, -non tuffaceous sandstone often has more inter -grain silt than clay, -many sandstone pieces have a roughly planar structure with carbonaceous or other laminations and grains /particles along imperfect parallel lineations, - note change from 70% colorless to very pale colored translucent quartz and other silica and 30% colorless and transparent, to 80% and 20% respectively. Tuffaceous Claystone /Tuffaceous Siltstone (6580'- 6800') = medium gray with very strong light brownish gray secondary hues; also frequent localized shifts to medium light gray or medium dark gray; associated volcanic ash often light gray; soft to very slightly firm or slightly brittle; hydrophilic when soft and soluble in part; tuffaceous clay -silt is the supporting matrix for most sandstone; partially sticky with moderate adhesiveness, moderate to poor cohesiveness; 100% silt or clay is very rare, nearly all samples are admixture; clayey to silty to ashy to various soft matte and mixed textures; earthy to occasionally microsparkly lustre; very often with thin carbonaceous laminations and particles; commonly grades to carbonaceous tuffaceous mudstones; local very sandy tuffaceous siltstone. • Ell EPOCH 10 (AIR 11 MARATHON OIL COMPANY BC -18 • Sand /Conglomeratic Sand /Sandstone (6780'- 6900') = medium gray with greenish gray secondary hues and a strong salt and pepper appearance, individual grains dominantly medium to dark gray, medium greenish gray, clear to translucent quartz and volcanic glass, black, white and trace bluish green; fine lower to very coarse upper with pebble fragments, dominantly medium upper to coarse lower; angular to subrounded pebbles; dominantly subangular; poorly sorted; dominantly disaggregated with scattered light gray to grayish white and grayish blue ash - supported sandstone; fine to medium grain; soft , fragile, pulverulent; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (6880'- 7000') = light brown to brownish gray with dark brown secondary hues and light gray to light bluish gray; irregular shaped cuttings; silty to clayey to gritty texture; dull, earthy to slightly waxy and occasionally sparkly from high ash content; moderate to very soluble; slightly expansive when hydrated; poor adhesiveness; poor to fair cohesiveness; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles; claystone present as supporting matrix for dominantly loose sand. Sand /Conglomeratic Sand /Sandstone (6940'- 7100') = medium gray with greenish gray secondary hues and a strong salt and pepper appearance, individual grains dominantly medium to dark gray, medium greenish gray, clear to translucent quartz and volcanic glass, black, and white; fine lower to very coarse upper with scattered pebble fragments, dominantly medium upper to coarse lower; angular to trace subrounded pebbles, dominantly subangular; poorly sorted; dominantly disaggregated with scattered light gray to grayish white ashy /clayey supported sandstone; fragile; soft; non to slightly calcareous. Tuffaceous Claystone /Tuffaceous Siltstone (7040'- 7160') = light gray to grayish brown with light greenish gray secondary hues; irregular, rounded cuttings; soft; fragile; silty to clayey texture; earthy lustre; moderately soluble and expansive; poor adhesiveness; poor to fair cohesiveness; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles. • Sand /Conglomeratic Sand /Sandstone (6940'- 7100') = medium gray with greenish gray secondary hues, individual grains dominantly medium to dark gray, medium greenish gray, clear to translucent quartz and volcanic glass, black, and white; fine lower to very coarse upper with scattered pebble fragments, dominantly medium upper to coarse lower; angular to trace subrounded pebbles, dominantly subangular; poorly sorted; dominantly disaggregated. Sand /Sandstone /Conglomeratic Sand /Conglomerate (7100'- 7350') = nearly all grains /clasts in this interval are coarse upper and larger; low to moderate diversity of conglomerate clasts that include, quartz, non - differentiated cryptosilica, various non - differentiated grayish silicate minerals, quartzite and coarser - looking meta - sandstone, meta - igneous rocks, micro - conglomerate, hard (meta -) sedimentary rocks and (mostly grayish green colored) low grade meta greenstones; roughly equal rounded and angular clasts, and locally common fracturing and weathering; many large clasts will separate along fracture lines when pressed with probe; rare piece of consolidated conglomerate indicates that fairly rounded granules /pebbles have inter -grain material of smaller, more angular coarse to very coarse sand grains with the finer spaces closed by a mixture of soluble tuffaceous clay, floating glassy shards and devitrified shards, fine particulate coal /carb mat and at least on stage of weak calcite and /or silica cementation; note that some of the conglomerate clasts are also soft clastic fragments of claystone- siltstone- volcanic ash; some of the associated tuff claystone has a distinctive faint pale green hue. Tuffaceous Claystone/Tuffaceous Siltstone (7360'- 7480') = light gray to grayish brown with light greenish gray secondary hues; irregular, rounded cuttings; soft; pulverulent; silty to clayey texture; earthy to slightly waxy luster; moderately soluble and expansive; poor adhesiveness; poor to fair cohesiveness; non calcareous. • II EPOCH 11 M MARATHON OIL COMPANY BC -18 • Sand /Conglomeratic Sand/Tuffaceous Sandstone (7420'- 7540') = medium greenish gray with light green and gray secondary hues, individual grains dominantly medium to dark gray, light to medium greenish gray, clear to translucent quartz and volcanic glass, light green, white; fine lower to very coarse upper with pebble fragments, dominantly coarse angular to subrounded larger grains, dominantly subangular; poorly sorted; moderately well consolidated with very calcareous cement; note: decrease in conglomeratic sand in 7520' sample with an increase in tuffaceous clay and ashy tuffs. Tuffaceous Claystone /Tuffaceous Siltstone (7480'- 7620') = light to medium light gray and light greenish gray to greenish gray with light bluish gray secondary hues; very soft; fragile to pulverulent; irregular to occasionally pdc bit action "scooped" appearance; silty to clayey texture; dull to slightly sparkly luster; moderately soluble and expansive; poor adhesiveness; poor to fair cohesiveness; non to slightly calcareous; common to abundant light green to greenish blue and grayish white tuff; non calc. Sand /Conglomeratic Sand/ Sandstone (7540'- 7780') = medium to medium dark gray with light brownish gray secondary hues, individual grains dominantly light to medium to dark gray, black, greenish gray, translucent and white; fine lower to pebble fragments, dominantly medium upper to coarse lower; angular to trace subrounded, dominantly subangular; poorly sorted; partially consolidated with very calcareous cement; shattered, very angular fragments; trace light gray sandstone; very fine to fine grain; hard moderate to very calcareous cement; trace to common light to medium gray to grayish white ashy tuff; fragile; slight to moderately calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (7620'- 78201 = light to medium light gray and light brownish gray secondary hues; very soft; fragile to pulverulent; irregular shaped cuttings; silty to clayey texture; dull to slightly earthy luster; moderately soluble and expansive; poor adhesiveness; poor to fair cohesiveness; non to slightly calcareous; trace to common dark brown to black micro -thin carbonaceous laminations and inclusions; trace thin coal beds with trace visible outgassing. 410 Sand /Conglomeratic Sand /Sandstone (7780'- 7900') = medium to medium dark gray with light brownish gray secondary hues, individual grains dominantly light to medium to dark gray, black, greenish gray, translucent and white; fine lower to pebble fragments, dominantly medium upper to coarse lower; angular to trace subrounded, dominantly subangular; poorly sorted; partially consolidated with very calcareous cement; shattered, very angular fragments. Coal /Carbonaceous Shale (7800'- 7960') = black with dark brown secondary hues; firm to very firm and hard; brittle at times; blocky to platy; planar fracture dominant with trace conchoidal and birdeye; smooth to slightly silty texture; resinous to earthy luster; visible outgassing present in well formed pieces. Tuffaceous Claystone/Tuffaceous Siltstone (7820'- 80201 = light to light medium gray with light to light medium brown secondary hues; very soft; irregular to globular shaped cuttings; silty to clayey texture; dull to slightly greasy luster; moderate to very soluble and expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; commonly acts as supporting matrix for loose sand; trace dark brown to black microthin carbonaceous laminations and inclusions. Sand/ Sandstone /Conglomeratic Sand (8020'- 8100') = medium to medium dark gray with a strong "salt and pepper" appearance, individual liths dominantly medium to dark gray, black, light gray, clear to translucent quartz and volcanic glass, and white; fine lower to very coarse upper with pebbles and pebble fragments, dominantly medium upper to coarse upper; angular to rounded pebbles dominantly subangular; poorly sorted; unconsolidated to very well cemented; shattered coarse fragments are very hard with moderate to very calcareous cement. Coal /Carbonaceous Shale (8060'- 81201 = black with dark brown secondary hues; firm to very firm and hard; brittle at times; blocky to platy; dominantly planar fracture; trace conchoidal and birdeye fracture; smooth to slightly silty texture; resinous to earthy luster; visible outgassing present in well formed pieces. • [I EPOCH 12 ( M ) MARATHON OIL COMPANY BC -18 40 Sand /Sandstone /Conglomeratic Sand (8120'- 8200') = medium to medium dark gray with a strong "salt and pepper" appearance; contrasting grains are dominantly clear to translucent light gray quartz and volcanic glass against medium to dark gray, black, "off white" and spotty multicolored lithics /minerals; fine lower to very coarse upper with pebbles and pebble fragments, dominantly medium upper to coarse upper; angular to rounded pebbles, dominantly subangular; poorly sorted; disaggregated to well cemented; shattered coarse fragments are very hard with moderate to very calcareous cement. Tuffaceous Claystone /Tuffaceous Siltstone (8020'- 8300') = light to medium light gray and light brownish gray secondary hues; very soft; sticky; irregular shaped cuttings; silty to clayey texture; earthy lustre; moderately soluble and expansive; poor cohesiveness; fair to good adhesiveness; non to slightly calcareous; trace to common dark brown to black micro -thin carbonaceous laminations and particles; trace light brown to brownish gray siltstone grades to fragile non - calcareous silty sandstone. Sand /Sandstone/Tuffaceous Sandstone (8200'- 8700') = general increase in variation of sandstone types; range from fairly "clean- looking ", grain supported, moderately well sorted sandstone with weak calcite and silica cementation and fair visible porosity to a somewhat "dirty" matrix supported tuffaceous sandstones borderline to silty -sandy claystone - mudstone; most sandstone displays complex, subtle combinations of inter -grain material and mixed matrix and grain support; diverse characteristics suggest thinly bedded changing sandstones rather than homogeneous massive sections; dominant sandstone is a tuffaceous clay - volcanic ash soft matrix supported sandstone, light medium gray, fine upper to medium upper, angular to subangular, that apparently hydrates easily as the clay content increases, and still displays tiny blebs and /or mottled zones of cleaner looking slightly mineralized sandstone; note consistent very minor very fine silty sandstone grading to sandy siltstone; very fine fraction is largely glass shards winnowed from volcanic ash; note roughly equal amounts of disaggregated grains and (mostly soft, weak) consolidated pieces. Sand /Sandstone/Tuffaceous Sandstone (8200'- 8700') = dominantly medium gray, but many spotty 411, localized variations ranging from light gray to medium dark gray; common very faint light olive gray to olive gray secondary hues; dominantly fine upper to coarse lower; range from very fine lower to granule (conglomerate); sorting appears moderate to poor due to mixing of multiple thin beds in cuttings; occasional massive sections display fining upward; basal zones of thick sands are coarse to conglomeratic; angular to subangular when fine to coarse; grains larger than coarse are often rounded and moderately spherical; note many different types of sandstone as previously described, many variations of inter -grain material; lithic arenite to compositional graywacke; estimate 60 -75% quartz and volcanic glass, trace feldspar, 5 -15% cryptosilica (chert, chalcedony) and undifferentiated silica, 20 -35% lithics and mafic minerals; minerals; note many minerals not readily identifiable; light olive hues due to fraction of grayish green, green and variegated green low grade meta greenstone rock fragments and chlorite; green low grade meta rock fragments; slightly dominant fraction of medium to dark gray to grayish black medium grade meta argillite - phyllite rock fragments; remaining lithics, minerals contributed moderately diverse sources; 65 -75% of the quartz is colorless to very pale gray to very pale brown and translucent, 25 -35% of the quartz and nearly 100% of the volcanic glass is colorless and transparent; note locally common clastic coal and calcareous tuff lithics. Tuffaceous Claystone/Tuffaceous Siltstone/Volcanic Ash (8300'- 8800') = derived from volcanic ash; common to abundant discernible shards; medium light gray to medium gray, but differentiated volcanic ash and some of the more homogeneous tuffaceous claystone have higher lightness values to very light gray; common faint light bluish gray and light brownish gray secondary hues; note common pale brown to grayish brown coloration when having abundant carbonaceous material; grades to carbonaceous tuffaceous claystones when adjacent to coals; note that all tuffaceous lithologies are gradational each other; soft to slightly firm or slightly brittle; all softer clays look hydrophilic and at least partially soluble; soft tuff clays have moderate to good adhesiveness and moderate to poor cohesiveness; structureless and massive, but trace pieces display imperfect fissility; tuffaceous siltstones are usually firmer than tuff claystone; local tuffaceous siltstones are very sandy, have abundant "floating" sand grains and grade to silty tuffaceous sandstone; range of textures from clayey to silty to ashy to various soft matte and mixed textures often mottled in part; earthy to microsparkly lustre (when glass shards reflect ambient light; trace ash has remnant vitriclastic patterns; common thin carbonaceous laminations and particles. �� EPOCH 13 m MARATHON OIL COMPANY BC -18 io Coal /Carbonaceous Shale (8860'- 8980') = dark brown to black with dark gray to dark brownish gray secondary hues; soft to firm to occasionally hard and brittle blocky to platy; planar fracture dominant with trace conchoidal and birdeye; silty to gritty to occasionally smooth texture; earthy luster; poorly developed no to trace visible outgassing bubbles. Tuffaceous Claystone/Tuffaceous Siltstone (8800'- 9040') = light gray and medium brown with light brown to brownish gray secondary hues; rounded, irregular shaped cuttings; very soft and fragile, pulverulent; silty to clayey to gritty from fine grain suspended sands; dull to earthy luster; moderate to very soluble; expansive when hydrated; poor cohesiveness; fair to good adhesiveness; moderately calcareous; trace dark brown to black micro -thin carbonaceous laminations and inclusions; trace thin coal beds trace light to medium gray ashy tuff; fragile; very calcareous. Coal /Carbonaceous Shale (9000'- 9120') = black with dark brown secondary hues; firm to very firm to brittle to hard; blocky to platy; planar fracture dominant with trace conchoidal and birdeye; smooth to slightly silty texture; resinous to earthy luster; visible outgassing present in higher grade pieces. Sand (9040'- 9160') = light to medium light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass and minor Tight gray, light greenish gray and black; very fine upper to medium lower, dominantly fine grain; angular to subangular; moderately well sorted; unconsolidated with abundant light gray clay supported matrix; trace light to medium gray ashy tuff; fragile; very calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (9040'- 9240') = light gray and medium brown with Tight brown to brownish gray secondary hues; rounded, irregular shaped cuttings; very soft and fragile, pulverulent; silty to clayey to gritty from fine grain suspended sands; dull to earthy luster; moderate to very soluble; expansive when hydrated; poor cohesiveness; fair to good adhesiveness; moderately calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal • beds trace Tight to medium gray ashy tuff; fragile; very calcareous. Coal /Carbonaceous Shale (9120' - 9244') = black with dark brown secondary hues; firm to very firm and hard; brittle at times; blocky to platy; dominantly planar fracture; trace conchoidal and birdeye fracture; smooth to slightly silty texture; resinous to earthy luster; visible outgassing present in well formed pieces. 3.1. SAMPLING PROGRAM AND DISTRIBUTION BC -18 Set Type and Purpose Interval Frequency Distribution Marathon Oil Company c/o C & M Storage, Inc. 3311 S U.S. Highway 77 A Washed and Dried 2107' — 9244' 20' Schulenburg, TX 78956 Attn: Scott Szalkowski (713) 296 3390 BOX INTERVALS: 2100' — 3160', 3160' — 3960', 3960' — 5220', 5220' — 6400', 6400' — 7540', 7540' — 8480', 8480' — 9244' TD (7 Boxes Total) • Ell EPOCH 14 M MARATHON OIL COMPANY BC -18 40 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 1/15/2009: Begin general rig up operations for BC 18. 1/16/2009: Continuing rig -up operations. Craig Silva and Ralph Winkelman arrive at the BC 18 location, spot EPOCH logging unit ML006 and get power to the unit. 1/17/2009: Continuing rig up operations. Rig up kill line to conductor. Set stack. Rig up directional driller's trailer. Rig up derrick board. Repair RPM cable on Topdrive. Plumb in #1 cooling tower. Insulate pump #3 suction and pop off lines. Modify pitcher nipple. Install knife valve. Dress out shakers with new screens. Rig up ambient gas detectors. Cut and slip geolograph line. Test accumulator. Rotate and reset starting head. Retest void to 500psi for 10 minutes. Begin install and nipple up of diverter. Begin mixing spud mud. Install modified bell nipple. Rig up bleeder, fill -up and trip tank lines and flow line extension. Install and adjust turnbuckles. Finish nippling up and securing down diverter line. Set pipe racks in place and load with 5" drill pipe and HWDP. Rig up and prepare to pick up pipe. Pick up, make up and stand back 5" drill pipe and 5" HWDP (and jars). Strap all pipe while standing back. Finish mixing spud mud. Calibrate and test all gas alarms. Test diverter. Performance test accumulator. Pick up and install safety valves. Pick up handling tools for making up initial BHA. Test run pump #2. Craig Silva and Ralph Winkelman rig up the full Rigwatch 8.7 system, the unit's computers and equipment , the external camp workstations, the Gaitronics communications, the Starband Satellite System, the analog outputs and the gas system. An attempt was made to rig up the wireless network to • camp, but there was a communication failure within the system. The new well is initialized for Rigwatch and DML and Unit #6 is organized for mudlogging operations. 1/18/2009: Continue working on pump #1 cooling tower. Troubleshoot problems with pump #3. Pick up, make up and run in initial bottom hole assembly (bit, motor, stabilizer, crosssover, HWDP) for cleaning out conductor and making enough hole to pick up directional tools. Break circulation. Clean out conductor from 30' to 101'. Spud Well when drilling out of conductor. Drill from 101' to 215'. Circulate bottoms up. Circulate, ream and clean hole. Pull out of hole from 215' to top of stabilizer at 35'. Pick up, make up and run in hole full directional assembly (bit, motor, string stabilizer, pony flex collar, MWD collar, 2 flex collars, 2 crossovers, shock sub, crossover, HWDP). Break circulation and tag bottom 215'. Drill from 215' to 941'. Craig Silva and Ralph Winkelman finish rigging up remaining items. The gas system is calibrated. All attempts at establishing communication to camp via the wireless system failed, so a communication line is run from the logging unit to the camp to provide normal Rigwatch service. 1/19/2009: Drill (sliding and rotating) from 941' to 2107'. Circulate bottoms up. Pump around Hi -Vis sweep. Circulate, clean and condition hole. Pull out of hole from 2107' (to 637') on wiper trip to conductor. Steve Forrest arrives on location and aims the Starband Satellite dish. Another attempt was made at wireless communication to the camp, but was unsuccessful. Wired communication to camp continues. [I EPOCH 15 AMA MARATHON OIL COMPANY BC -18 • 1/20/2009: Continue pulling out of hole (SLM, with no correction) from 637' to 159' on wiper trip. Pull to 141' (outside conductor) laying down part of upper directional tools (shock sub, 2 crossovers). Lube, service and inspect the Topdrive, crown, blocks and carrier. Run back in hole from 141' to 2054'. Kelly up and wash down from 2054' to 2107' (with no fill). Circulate bottoms up and record 1 unit of wiper gas. Pump and circulate around 40 bbl Hi -Vis Nutplug sweep. Circulate, clean and condition hole. Check for flow. Pull out of hole with 5" drill pipe to 798'. Pull and stand back 5" HWDP and jars to 141'. Break and lay down crossover. Pull and stand back 2 CSNMDPs. Break, lay down and load off remaining directional tools (MWD, NM pony flex collar, NM string stabilizer, motor, bit). Inspect all connections while pulling and laying down bottom hole assembly. Lay down bit handling tools. Clear and clean rig floor. Prepare to run 13 3/8" surface casing. Change out from short to long bails. Lay down pipe elevators. Install pick -up line. Move breakout tongs to driller's side and install correct tong head. Install fill -up line. Install casing elevators. Rig up casing tongs. Change out from short to tall snub post. Rig up and test stabbing board. Remove rotary bushings and rig up casing spider slips. Tie one tugger line back in derrick for pipe pick -up and second tugger line back to hang casing tongs. Rig up Weatherford power tongs. Make up and function check EZ -turn valve onto casing swage for safety valve (and record in IADC). Stage centralizers and lock rings on rig floor. Clean casing threads of each shoe track joint before make up. Hold pre -job meeting with Weatherford hands on procedures and safety for running surface casing. Run 13 3/8" casing as per Marathon. Pick up, Bakerlok, make up and run in hole 13 3/8" shoe track (shoe joint, spacer joint, sting -in float collar). Check floats. Continue running in 13 3/8" casing as per Marathon and land at 2097' (with float collar at 2051). Note slick casing run without tagging fill. Rig down and load off all Weatherford casing running equipment. Rig down fill up line. Clear rig floor. Change out bails, elevators, tongs and snubbing post to handle and run 5" drill pipe. Prep pipe spinner. Make up inner string tools (stab -in sub, 5' pup and centralizer) on 5" drill pipe. Rig up false rotary for running 5" drill pipe inside 13 3/8" casing. Run in hole with 5" drill pipe and stab -in sub (to 1217'). 1/21/2009: Continue running in hole (inside 13 3/8" casing through false rotary) top of float 13 3/8" float • collar at 2051'. Tag and sting into float collar and space out. Circulate and condition hole (1 % casing volumes). Record 1 unit of trip gas. Pump 223 bbls of mud to Hanson Tank prior to cementing. Build 40 bbls Mud Clean II preflush spacer. Rig up cementing lines. Hold pre -job meeting with BJ cementers and vac truck drivers on safety and procedures for cement job. Pump 40 bbls of 8.4ppg Mud Clean II (with 1 gallon red dye added) using rig pumps. Switch over to BJ pumping unit. Pump 3.0 bbls of water to fill cement lines. Pressure test to 2760psi. Bleed off pressure. Batch cement to 12.0ppg. Pump 290.0 bbls of 12.0ppg cement slurry (658 sacks Type I LW -6 cement and accelerator additives to 162.00 bbls of mix water for 10.328 gal water /sack and yield of 2.483 cu ft per sack). Pump cement slurry and then follow with 33.4 bbls of 9.4ppg mud to displace. Note continuous problems with BJ pumping unit losing power and maintaining 5 bpm pump rate. Bleed off pressure. Check floats. Cement in place. Shoe set at 2097' and float collar set at 2051.80'. No losses during pumping with 40 bbls good excess cement returns back to surface. Cement returns treated with citric acid retarder. Rig down and flush cementing head and lines and continue rigging down BJ. Unsting from float collar. Float holding. Pull out of hole from 2051' to 1980' and rig up to pump ball down pipe. Pump wiper ball down to clear drill pipe of any residual cement. Treat all mud returns for traces of cement product. Dump returns during and after pumping ball. Finish pumping. Rig up false rotary table and pull out of hole with 5" drill pipe from 1980' to surface. Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). Rig down false rotary. Flush, re- flush and drain 20" by 13 3/8" annulus, flowline and all mud lines. Pull plate. Clear and clean rig floor and cellar. Flush #3 mud pump. Wait on cement. Prep diverter for nipple down. Begin pumping out and hauling off spud mud and start cleaning pits. Nipple down and remove diverter line and knife valve. Disconnect turnbuckles to stack and secure out of the way. Nipple down and rig down fill -up line, bleeder line, trip tank line, flow line, flow line extension, kill line, 2" valve, accumulator lines, actuator, bell nipple and scaffolding. Remove and lay down mousehole. Change out NCR valve. Remove all but 2 bolts on stack. Make rough cut on 13 3/8" casing and lay down stub section. Rig up drill pipe elevators. Finish cleaning the pits. Finish nippling down the last components of the diverter stack and then move out of the cellar and mount on stand. Remove and load off 21 1/4" sliplock starter head. Make cut on 20" conductor. Make final cut on 13 3/8" casing and then dress out stub. Install 13 3/8" sliplock connection by 13 5/8" 5M flanged multibowl wellhead. Energize seals and test wellhead to 1500psi for 10 minutes. Nipple down single gate. Change oil in #1 and #2 carrier motors. Install new discharge line on hopper. El EPOCH 16 ( M ) MARATHON OIL COMPANY BC -18 1/22/2009: Clean up and de -ice around sub -base catwalk and gray iron. Set pipe racks in place next to catwalk. Set spool and HCR on stack. Set stack and nipple up of 13 5/8" 5M BOPE. Retighten PLC plugs. Weld out plate to finalize installation of new discharge line. Finish cleaning pits. Fill pits with water and begin mixing new Flo -Pro mud. Pick up and re- install mousehole. Nipple up and rig up all BOP attachements and accessory equipment (fill -up line, bleeder line, trip tank line, flow line, flow line extension, kill line, 2" valve, accumulator lines, actuator, bell nipple, drip pan and scaffolding). Re- connect and secure turnbuckles to stack. Prepare to test BOPE. Pull wear ring. Set test plug. Rig up testing equipment. Function check BOPE. Fix connection on HCR and leak on choke line. Test all BOPE to 250psi Low / 3000psi High for 10 minutes (annular, upper pipe rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside kill, HCR, manual choke, lower pipe rams, blind rams, CMVs 1 -12). Finish mixing mud, loading pipe racks with 5" drill pipe and strapping pipe while testing BOPE. Perform accumulator drawdown test. Test all gas alarms. Rig down BOPE test equipment. Pull test plug. Rig up casing test equipment and test 13 3/8" casing to 1500psi for 30 minutes. Rig down test equipment. Install wear ring. Blow down choke and mud lines. Install elevators. Pick up and prepare pipe handling tools on rig floor. Begin picking up, rabbiting, drifting, making up, running in hole, pulling out standing back in the derrick and strapping pre- staged 5" drill pipe off the pipe racks. 1/23/2009: Continue picking up, rabbiting, drifting, making up, running in hole, pulling out standing back in derrick and strapping pre- staged 5" drill pipe off the pipe racks. Pick up, make up and run in hole new bottom hole assembly to clean out shoe (bit, motor, NM stabilizer, pony NMDC, 2 NMCSDP flex joints, crossover). Dress flex collar threads. Make up crossover to first stand of HWDP from derrick and run in hole with HWDP and jars to 762'. Continue running in hole with 5" drill pipe to 1773'. Wash down from 1773' and tag cement at 2045'. Drill cement from 2045' and tag float collar at 2051'. Drill out float equipment and remaining shoe tract (cement, shoe at 2097', rathole) to 2107'. Drill 20' of new hole from 2107' to 2127'. Circulate bottoms up. Continue to circulate briefly over shakers and then overboard returns while displacing. Displace the old 9.4ppg spud mud with a 30 bbl lead spacer of water, followed • by a 45 bbl Hi -Vis sweep and 280 bbls of new 8.7ppg Flo -Pro NT. Cease pumping and perform Formation Integrity Test to 12.0ppg EMW (3590psi, 2072'tvd, 8.7ppg). Blow down. Pull out of hole from 2127' to surface. Break and lay down mill tooth bit. Pick up and make up PDC bit. Pick up and make up MWD collar into directional assembly (bit, motor, NM stabilizer, pony NMDC, NM MWD, 2 NMCSDP flex joints, crossover). Orient MWD too. Run in hole with directional tools and HWDP to 798'. Test MWD tool. Continue running in hole with 5" drill pipe to 2063'. Break circulation and wash down from 2063' to 2127'. Record 1 unit of trip gas. Drill from 2127' to 2252'. 1/24/2009: Drill from 2252' - 3901' 1/25/2009: Drill from 3910' to 4343'. (Note dyanmic losses of 20 bph, static losses of 3 bph). Circulate bottoms up. Circulate hole clean and spot 47 bbl LCM pill. Check for flow. Pull out of hole from 4343' to 2063' (inside shoe) on wiper trip. Clean rig floor. Slip 33' of drill line. Service rig. Grease crown. Check crown -o- matic. Run back in hole from 2063' to 4279'. Wash down from 4279' to bottom at 4343' (with no fill). Record 2 units of wiper gas. Drill from 4343' to 4997'. 1/26/2009: Drill from 4997' to 5668'. Troubleshoot PLC problems. Drill from 5668' to 6048'. Troubleshoot continuing PLC problems. Correct PLC wiring problem. Drill from 6048' to 6204'. 2/27/2009: Drill from 6204' to 6235'. Circulate bottoms up twice to clean and condition hole. Check for flow. Pull out of hole from 6235' on wiper trip to shoe. Pull to 5604'. Pump dry job. Blow down surface lines. Continue pulling out of hole to 2063' (just inside shoe). Service carrier, Topdrive and #3 mud pump. Monitor well. Run back in hole from 2063' to 6175'. Wash down from 6175' to bottom at 6235'. (Observe 5' of fill). Record 9 units of wiper gas. Drill (rotating and sliding) from 6235' to 6560'. 1/28/2009: Drill (sliding and rotating) from 6560' to 7283'. El EPOCH 17 CD MARATHON OIL COMPANY BC -18 • 1/29/2009: Drill (sliding and rotating) from 7283' to Intermediate Casing Point at 7623' (note dynamic losses at 4 bph, static losses at 2 bph ). Circulate bottoms up. Circulate clean and condition hole. Pull out of hole from 7623' to 5921' on wiper trip. (Pull tight at 6860', 6660', 6510', 6435', 6240' to 5921' on way out). Run back in hole from 5921' to 7560'. Start to break circulation but system immediate appears plugged. Unable to circulate after several attempts. Unknown blockage in drill string. Prepare to pull out of hole. 1/30/2009: Prepare to pull out of hole with plugged drill pipe. Monitor well. Fill trip tank. Blow down mud lines. Begin pulling wet out of hole from 7623' (SLM with no correction). When pulling, discover abundant pipe- shaped cement pieces in drill pipe. (Cement in pipe is residual from surface cement job). Clear and clean cement as each stand is pulled. Inspect all connections the rest of the way of drill pipe, HWDP and directional tools for cement and /or galling. Pull out of hole from 7623' to top of bottom hole assembly at 798'. Pull and stand back 5" HWDP to 292'. Pull and lay down jars. Pull and stand back last 2 stands of HWDP to 141'. Pull, break, inspect and lay down all directional tools (crossover, 2 NMCSDP flex joints, NM MWD, pony NMDC, MN stabilizer, bit). Check filter sub on top of MWD before laying down and observe that sub screen is completely packed off with cement fragments. Grade bit. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up wireline running equipment. Pick up, make up and run in hole WWS Quad -Combo logging assembly. Load sources for neutron tools on way in. Encounter ledge at 5852' while running in. Work logging assembly down to 5909' but unable to get past. Pull to surface with logging assembly. Unload sources. Change assembly configuration by breaking and laying down 2 -arm caliper. Reload sources. Run in hole WWS Quad -Combo logging assembly. Encounter ledge at 5856' while running in. Work logging assembly down to 5890' and eventually break free. Continue running logging assembly to near bottom at 7616'. Log up from with Quad -Combo assembly from 7616' to casing shoe at 2097'. Pull wireline assembly out of hole. Unload sources. Break and lay down logging tools. Rig down WWS surface running equipment. Clear and clean rig floor. Pick up, measure, and make up rock bit, bit sub and crossover. Make up to first stand of 5" HWDP and begin running in hole. • 1/31/2009: Continue running in hole with 5" HWDP (and jars) to 661'. Rig up 2 3/4" drift to check 5" drill pipe for cement while being run in out the derrick. Run 5" drill pipe in hole from 661' to 5720', laying down the last 2 stands ( #80, #81) on way in. Break circulation at 5720', staging up pump rate. Clean and condition mud. Wash down from 5720' to 5850'. Wash and ream from 5850' to bottom at 7623'. Clean 1' of fill on bottom. Pump around 30 bbl weighted Hi -Vis sweep (at 300spm, 600gpm). Record 2 units of trip gas. Continue to circulate and clean hole. Spot 48 bbl LCM pill (to 4000' in annulus) and follow with 30 bbl dry job. Lay down single with saver sub. Begin pulling out of hole with 5" drill pipe from 7623'. Pull through tight spots at 5911' and 5848'. Continue pulling out of hole from 5848' to 4141'. 2/1/2009: Continue pulling out of hole with clean out assembly (from 4141') to surface. Break and lay down bit, bit sub and crossover. Blow down mud lines. Clear and clean rig floor. Pick up single from catwalk and break out saver sub. Remove drill pipe elevators and short bails. Install long bails and pick- up sling -line. Install casing elevators. Prep to make gauge run with 9 5/8" casing hanger. Pull wear bushing. Close annulus valve. Using single joint elevators, drift BOPs with landing joint and hanger with Vetco -Gray witnessing,. Mark elevation on landing joint. Change variable pipe rams to 9 5/8" casing rams. Test 9 5/8" rams to 250psi Low / 3000psi High for 30 minutes. Change out saver sub and grabber dies. Torque saver sub. Move breakout tongs to driller's side and install correct tong head. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Rig up and function stabbing board. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Hold pre -job meeting with all hands on procedures and safety for running surface casing string. Inspect rig -up. Pick up shoe joint and start run -in. Run in hole with 9 5/8" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Pick up and make up shoe track (shoe joint, 1 spacer joint, float collar, "float joint ") and run in hole to 121'. Circulate casing volume through shoe track and check float equipment. Continue running 9 5/8" casing in hole as per Marathon. Attach centralizers as per tally and fill every joint on way in. Run casing from 121' to 3213'. 11 Ell EPOCH 18 M MARATHON OIL COMPANY BC -18 • 2/2/2009: Continue running 9 5/8" casing in hole as per Marathon. Attach centralizers as per tally and fill every joint on way in. Run casing from 3213' to 3526'. Break circulation and fill pipe. Record 1 unit maximum gas. Continue running 9 5/8" casing in hole from 3526' to 7590'. Break circulation. Pick up and wash down from 7590' to landing depth of 7612'. Record 1 unit maximum gas while washing down. Remove slips and land hanger on load shoulder in multi -bowl wellhead. Drain stack and verify landing. Break circulation and continue to circulate and condition well. Circulate bottoms up and record 1.5 units of trip gas. Continue to circulate while BJ works on starting up their cold weather- affected cementing trucks and pressure testing the cementing van's internal lines. Cease circulating and blow down mud lines. Make up cementing head with top and bottom plugs pre - installed. Continue to circulate and condition mud with rig pumps prior to cement job. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Continue circulating while 72 bbls of 10.5ppg lead cement is batch mixed . Finish batch mixing lead cement. Finish circulating with rig pumps. Blow air through cementing lines and valves to clear. Switch to BJ pumping unit. Pump 2.0 bbls of water and pressure test lines to 2921 psi. Bleed off and line out to pump spacer. Open up bottom valve and drop first (bottom) plug. Mix and pump 20.3 bbls of 10.0ppg SealBond spacer (using 18.48 bbls of mix water), followed by 193.0 bbls of both pre -mixed and batched -in 10.5ppg lead cement slurry (327 sacks of Class G cement plus accelerator chemicals mixed with 98.08 bbls water to batch -up at 12.61 gal /sk and yield of 3.32 cu- ft/sk) and then 40.0 bbls of batched in 15.8ppg tail cement slurry (191 sacks of Class G cement plus accelerator chemicals mixed with 22.59 bbls water to batch -up at 4.97 gal /sk and yield of 1.18 cu- ft/sk). Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 4.3 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 575.0 bbls (12334 strokes) of mud (and 579.3 bbls total displacement). Bump plug with 720psi over - pressure (and 1430psi total pressure). Bleed off. Check floats. Cement in place. Note 100% returns during displacement. Begin wait on cement. Flush down, blow down and rig down BJ cementing head and cement lines. Blow down Topdrive, mud Tines and mud pumps. Back out and lay down casing hanger landing joint. Remove casing elevators, long bails and pick up sling line. Install short bails. Remove and lay down Lafleur fill -up tool. Install drill pipe elevators. Move hanging sheave for breakout tongs to driller's side and install correct tong head. Pull and lay down casing spider slips. Load off the casing spider slips, casing elevators, long bails and Lafleur fill -up tool. Fold up stabbing board. Clear and clean rig floor. Make up 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and successfully test packoff to 5000psi for 10 minutes. Close blind rams. Change out upper 9 5/8" casing rams to 2 7/8" by 5 1/2" variable pipe rams. Swap tongs and rig up pipe spinner. Reset and realign torque tube. 2/3/2009: Finish readjusting torque tube. Finish rigging down stabbing board. Pump 300 bbls of old mud in pits over to Hanson Tank to make room for new Flo -Pro mud. Begin diluting mud in pits with 100 bbls of water and adding chemicals. Slip and cut drill line. Run in test plug. Rig up testing equipment. Test annular preventer to 250psi Low /3000psi High for 10 minutes. Observe freezing problems after first test. Suspend testing due to frozen lines. Prep and set up steam lines and MagTec hot air blowers. Begin thawing out choke line, rotary hose and Topdrive. Continue testing all BOPE to 250psi Low /3000psi High for 10 minutes (upper pipe rams, check valve, dart valve, upper Topdrive IBOP, floor valve, lower Topdrive IBOP, outside kill valve, inside kill valve, HCR; manual choke, CMVs 1 -12, safety valve). Service CMV 7. Perform accumulator drawdown test. Test all gas alarms. Pull test plug. Rig down testing equipment. Set wear bushing. Clean rig floor and prep for casing test. Test casing to 1700psi for 30 minutes. Blow down all lines. Finish thawing kelly hose and reinstall to Topdrive. Pick up, make up and run in hole lower section of new directional assembly (bit, motor, NM stabilizer, pony NMDC, MWD). Orient MWD tools. Dress monel threads. Make up and run in hole remaining directional tools (2 NMCSDP flex joints, steel crossover). Make up crossover to first stand of 5" HWDP from derrick and run in hole with HWDP (plus jars) and 1 stand of 5" drill pipe to 859'. Test MWD pulse signal. Prep to pick up drill pipe. Pick up pre- staged, prepped and strapped joints of 5" drill pipe off of the catwalk/pipe racks, make up and run hole (to 1112'). • El EPOCH 19 M MARATHON OIL COMPANY BC -18 • 2/4/2009: Continue to pick up, make up and run in hole joints of 5" drill pipe (54 joints/ 27 stands total) to 2569'. Continue running in hole with stands of 5" drill pipe out of the derrick to 7441'. Break circulation and briefly condition mud. Wash down with pipe out of derrick from 7441' and tag float collar at 7529'. Drill out float equipment and remaining shoe tract (cement, shoe at 7612', rathole) to 7623'. Drill 20' of new hole from 7623' to 7643'. Circulate bottoms up. Displace old Flo -Pro mud with clean Flo -Pro mud on the fly while drilling new hole and circulating out. Cease circulating and blow down surface lines. Perform Formation Integrity Test (9.4ppg, 960psi, 7069tvd) to 12.0ppg EMW. Drill from 7643' to 8530'. 2/5/2009: Drill from 8530' to 8764'. Experiencing ongoing problem with Topdrive hydraulics. Change #2 carrier Denison pump drive line. Circulate out while working on drive line. Continue drilling from 8764' to BC18 Total Depth of 9244'. Circulate bottoms up and continue to circulate hole clean. Pull out of hole from 9244' to 7612' on wiper trip. On way out, work through various tight spots, including kellying up and washing out from 8198' to 7818'. Service rig and Topdrive. Repair mud line valve on #2 mud pump. Tighten stabbing board hydraulic fittings. Repair leak on on #2 carrier motor power- steering pump. Run back in hole from 7612' to 9075'. Break circulation. Wash down from 9075' to 9184', and wash and ream from 9184' to bottom at 9244' (with 1' of fill). Circulate bottoms up. Record 121 units of wiper gas. Continue circulating to clean and condition hole. Work on and remedy problems with #1 and #2 mud pumps while circulating. 2/6/2009: Continue circulating to clean and condition hole. Continue working on #1 mud pump while circulating. (Change out center liner, 1 and 2 swabs). Pump around Hi -Vis sweep (at 213spm, 426gpm, 1700psi). Cease pumping when sweep is around. (Gas circulated down to 1 unit). Pull out of hole 5 stands from 9244' to 8953'. Break circulation and pump dry job. Continue pulling out of hole (SLM) from 8953' to top of bottom hole assembly at 795' (with no correction). Pull and stand back 11 stands of 5" HWDP (21 joints plus jars) to 139'. Break, lay down and load off directional tools (crossover sub, 2 NMCSDP flex joints, MWD plus filter sub, NM pony collar, NM string stabilizer, X -treme motor, bit). Grade bit. (Note no sign of galling on connections, but filter sub plugged with cement and all 3 jets on bit are • plugged). Clear and clean rig floor. Blow down mud lines. Lay down handling tools. Hold pre -job meeting with Weatherford Wreline Services' loggers on procedures and safety for handling wireline logging tools. Stage logging tools on catwalk. Hang sheaves and rig up wireline running equipment. Pick up, make up and run in hole Weatherford's Quad -Combo logging assembly. Load sources for neutron tools. Run in hole to 9231' (13' from bottom). Log up from with WWS Quad -Combo assembly from 9031' to 7612'. Run back in hole and make repeat logging pass from 8800' to 8400'. Pull back up inside the shoe at 7612' and continue to pull wireline assembly out of hole. Unload sources. Break and lay down Quad -Combo logging tools. Stage and make up WWS MFT logging tools on catwalk. Pick up and run in hole with MFT logging assembly to just inside shoe at 7600'. Wait at this depth while pressure point determinations are being made by Marathon Geology. Receive pressure point list from Marathon geologist and run in hole with MFT assembly to first test point at 9003'. Log up MFT tool, testing pressure points from 9003' to 8838'. 2/7/2009: Continue logging up with MFT tool, testing pressure points from 8838' to 7710'. (Attempt 68 total tests, with 44 successful). Pull MFT wireline assembly out of hole and lay down logging tools on catwalk. Rig down WWS surface running equipment. Pick up handling tools. Pick up and make mill tooth bit and bit sub with float to bottom of HWDP to clean hole. Run in hole with clean out assembly (filling pipe on way in at 4714' and 7612'). Hit ledge at 9132'. Break circulation and work through ledge. Wash and ream from 9132' to bottom at 9244' (with no fill). Circulate bottoms up. Record 70 units of trip gas. Continue to circulate until shakers are clean. Cease pumping and monitor well. Pump dry job. Begin pulling out of hole from 9244' laying down 5" drill pipe (to 8849'). • [I EPOCH 20 M MARATHON OIL COMPANY BC -18 • 2/08/2009: Continue pulling out of hole laying down 5" drill pipe (from 8849') to top of 5" at 660'. Blow down mud lines. Remove corrosion ring from last joint of drill pipe. Pull and lay down 5" HWDP, jars, bit sub and bit. Remove float from bit sub. Pull wear bushing. Pick up, make up and set 3 1/2" test joint. Test variable rams to 250psi Low / 1700psi High for 5 minutes. Pull and lay down test joint. Clear and clean rig floor. Lay down make up tongs. Rig down and load off all rig floor bit subs, drill pipe tools, rotary tools, spinners, and tongs. Prepare for highline operations to run in EXCAPE production modules and tubing. Hold pre -job meeting with all hands on procedures and safety for running 3'/" EXCAPE completion string. Change out bails and elevators. Pick up, install and rig up Weatherford tongs, casing running tools, handling tools and accessory equipment. Install fill -up tool. Rig up Weatherford fill -up line, circulating line, and floor valves. Use crane to position sheave with control lines previously fed through and aligned. Pull down to floor and tie off the 2 control lines and a protector dummy line. Rig up Pollard Wireline Service to perform banding of control lines. Inspect and insure that previously staged out modules are in correct order on short pipe rack. Six (6) modules are to be run. Begin running in hole with 3 %" EXCAPE completion string as per Marathon program. Pick up, make up and run in shoe tract (Davis Lynch Float Shoe, 1 standard joint, Davis Lynch Float Collar). Check floats. Continue to carefully pick up, make up and run in hole to 1256', the modules section of the completion string (Davis Lynch float tools, 6 EXCAPE modules, 29 standard joints, 10 pup joints, chemical injection assembly). Break circulation and circulate out. Continue running in hole with 3 %" EXCAPE casing to 2472'. 2/9/2009: Continue running 3 1 /2" EXCAPE completion string in hole from 2472' to 7588' (just inside 9 5/8" shoe). Rig up circulating head and line. Begin circulating, bringing pumps up slowly. Circulate casing volume (66 bbls at 80spm, 495psi, 156gpm). Cease pumping and continue running in hole with 3 %" casing from 7588' to 9222'. Terminate control lines and cable. Lower down sheave with crane and then rig down and load off. Rig up circulating head and line. Circulate while reciprocating pipe. Circulate bottoms up. Record 8 units of trip gas. Continue circulating (12000 total strokes at 895psi, 108spm, 213gpm). (Note inhibitor was slowly added to the mud system in the 24 hours before cementing commenced). Stop pumping and check for flow. Rig up Expro Wireline Service equipment and hold brief • pre -job meeting on wireline operations. Run in hole with gamma correlation log to determine perforating positions of EXCAPE modules. Log up from 9174' to 7150' and pull out of hole with wireline gamma tool assembly. Do correlation determination with gamma log. Note that the the shoe will be adjusted down 7.0' to 9229.89'. Rig down Expro WLS. Add pup joint and space out. Lay down pipe tongs. Hold pre -job safety meeting with BJ on cementing procedures and safety for cement job. Rig up cementing head and line up to BJ cementers. Head will have plug installed and a wash -up tee. Pump 6.1 bbls of water to fill lines. Pressure test cementing lines to 3028psi. Mix and pump 40.3 bbls of 11.0ppg Sealbond Spacer, using 37.40 bbls of water. After sweep, pump 155.0 bbls of 15.8ppg cement slurry (736.5 sacks of Class G cement plus accelerator chemicals mixed with 86.6 bbls water to obtain 4.939 gal /sk and yield 1.176 cuft/sk). Close valve to head and open wash -up valve. Pump 13.4 bbls water to wash lines from floor out to slop tank until returns are clean. Close wash up valve and open to head. Drop plug and pump out with 2.6 bbs of KCL brine. Displace cement with 82.3 bbls of 6% KCI brine. (Total displacement is 84.9. bbls). Record maximum 6 units of gas while displacing. Did not bump plug. Float did not hold. Hold at 1135psi. Bleed back 1 bbl and then put 1 bbl back in. Hold at 1195psi. Bleed back 1 bbl and then put 1 bbl back in. Hold at 1150 to 1330psi. Bleed off and put 0.5 bbl back in. Hold at 1170 to 1325 psi. Shut in at head. Total adjusted displacement at 82.5 bbls. Bleed off. No losses during cement job. No returns to surface . Cement in place. Begin waiting on cement. Flush and blow down cementing head and lines. Flush, washout and blow down stack. Lay down cementing head. Clear and clean rig floor. Flush and blow down all mud pumps, mix pumps and pump lines, choke manifold and choke lines, mud manifold, fill and trip lines, overhead and mud pump -out lines and desilter. Rinse, clean and pump out trip tank. Clean up sub -base. Unchain and prepare stack for nipple down. Remove drip pan. • [I EPOCH 21 (K MARATHON OIL COMPANY BC -18 • 2/10/2009: Load off drip pan. Rig down bleeder. Rig down fill -up and trip tank lines. Remove top and bottom spacer spool. Start pumping mud and other fluids out to vac trucks for haul -off. Change water pump. Change out thermostat on #2 carrier. Check for pressure before rigging down cementing head (no pressure). Rig down cementing head. Begin nipple down of riser, choke, and kill lines. Rig up Expro Wireline Service equipment and hold brief pre -job meeting on wireline operations. Run in hole with cement bond log and tag top of cement at 8710'. Log up from 8710' to 6700'. Record top of cement in annulus at 6850'. Pull out of hole with logging assembly and rig down EWS. Install extension pup to lift out riser. Pull and remove riser. Break and lay down extension pup. Rig down #3 mud pump. Begin cleaning pits. Lay down mousehole. Begin loading out pipe racks. Rig down work platform. Rig down flow nipple, choke line, kill line, fill -up line and turnbuckles. Rig down accumulator lines and panic line. Rig down standpipe manifold. Remove kill line check valve and chokeline hardline. Finish cleaning all pits and hauling off remaining fluids. Begin loading up trailers and hauling off rig and third party equipment that is no longer required off to the Kenai Gas Field. Rig up bridge cranes to BOP stack. Unbolt and pickup stack. Pull 3 %" casing to 100K and set 85K weight on slips. Rough cut 3'/" casing above slips and lay down landing joints. Nipple down and remove BOP stack and spool. Set stack on rack. Make final clean cut on 3 %" casing and dress. Run control lines through 3'/" packoff to tubing bonnet assembly. Terminate control lines with Swagelok fittings. Set and install packoff. Run in lock - down pins. Test packoff to 5000psi for 10 minutes. Run control lines out tubing head outlet. Nipple up 13 %" 5M by 3 1/16" 10M tubing head adaptor to the 3 1/16" 10M tree. Rotate tree. Terminate control lines through the bottom flange. Set 2 -way check valve in tubing hanger. Test void to 5000psi. Fill tree with methanol and test to 10000psi for 10 minutes. Rig up and attempt to test 3 %" casing to 2100psi for 30 minutes, but no test after failing to sustain pressure. Install BPV. Install EXCAPE control line warning sign. Completion is to be done without a rig. Proceed with rigging down and moving all Glacier No.1 rig modules, rig equipment, support trailers, communication equipment, camp trailers and camp accessory equipment to the KBU 11 -17X location. Ralph Winkelman and Craig Silva rig down all components of the Rigwatch 8.7 system, the gas system, • the Unit 6 computers and equipment, the external camp workstations, the wireless network to camp, the Starband Satellite system, the Gaitronics communications and unit power. Unit #6 is organized and secured for transport to the Kenai Gas Field. • Ell EPOCH 22 • I • M MARATHON OIL COMPANY BC -18 SURVEY RECORD Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) E/W ( -) (ft) (deg) (deg) (ft ) (ft) (ft) (ft) (ft) (deg) ( deg /100ft ) 0 0.00 0.00 0 0 0 0 0 0 0 163 0.15 337.84 163.00 0.09 0.20 -0.08 0.21 337.84 0.09 283 0.19 213.80 283.00 -0.05 0.18 -0.25 0.31 305.37 0.25 402 0.22 299.11 402.00 -0.30 _ 0.12 -0.56 0.57 282.58 0.23 523 0.44 294.02 523.00 -0.52 0.43 -1.19 1.26 289.79 0.18 642 0.50 316.26 641.99 -0.66 0.99 -1.96 2.20 296.72 0.16 760 0.83 271.35 759.99 -1.23 1.38 -3.17 3.46 293.50 0.50 886 1.27 282.86 885.96 -2.58 1.71 -5.45 5.71 287.45 0.39 949 0.93 308.20 948.95 -3.00 2.18 -6.53 6.89 288.49 0.93 1013 1.06 336.80 1012.94 -2.83 _ 3.05 -7.17 7.79 293.04 0.79 1077 1.82 348.26 1076.92 -2.03 4.59 -7.61 8.89 301.08 1.26 1137 2.37 353.81 1136.88 -0.71 6.75 -7.94 10.42 310.39 0.98 1200 3.45 3.52 1199.80 1.55 9.94 -7.96 12.74 321.31 1.88 1263 5.00 10.61 1262.63 5.27 14.53 -7.34 16.28 333.20 2.59 1327 6.96 18.12 1326.28 11.07 20.96 -5.62 21.70 344.99 3.29 1390 9.03 25.97 1388.66 19.19 29.03 -2.27 29.12 355.53 3.71 1453 11.22 30.92 1450.68 29.85 38.74 _ 3.05 38.86 4.50 3.74 1516 13.46 32.62 1512.22 43.00 50.17 10.15 51.19 11.44 3.60 1580 15.88 31.39 1574.13 58.83 63.92 18.73 66.61 16.33 3.81 1643 18.54 30.55 1634.30 76.96 79.91 28.31 84.78 19.51 4.24 1705 20.89 32.09 1692.67 97.34 97.77 39.19 105.33 21.84 3.88 1767 22.78 34.91 1750.22 119.99 116.98 51.94 127.99 23.94 3.49 1830 24.13 39.02 1808.01 144.85 136.99 67.02 152.50 26.07 3.37 1893 26.14 43.03 1865.05 171.55 157.14 84.61 178.47 28.30 4.18 1954 27.40 44.26 1919.51 199.02 177.01 103.57 205.09 30.33 2.26 2018 28.62 44.85 1976.01 229.08 198.43 124.66 234.34 32.14 1.95 2134 28.40 44.62 2077.95 284.44 237.76 163.63 288.63 34.54 0.21 El EPOCH 23 • • • 63 MARATHON OIL COMPANY BC -18 Vertical Rectangular Rectangular Closure Measured Inclination Azimuth TVD Coordinate Coordinate Closure DLS Section Azimuth Depth ( +) N/S ( -) ( +) E/W ( -) (ft) (deg) (deg) (ft ) (ft ) (ft ) (ft) (ft ) (deg) ( deg /100ft ) 2198 28.51 45.09 2134.21 314.94 259.38 185.14 318.67 35.52 0.39 2325 28.59 45.38 2245.77 375.63 302.12 228.23 378.64 37.07 0.13 2451 28.12 46.17 2356.65 435.45 343.86 271.11 437.88 38.25 0.48 2578 27.90 46.34 2468.78 495.05 385.10 314.20 497.01 39.21 0.18 2705 27.89 46.42 2581.02 554.43 426.09 357.21 556.02 39.97 0.03 2832 27.99 46.11 2693.22 613.90 467.23 400.21 615.20 40.58 0.14 2959 27.54 46.84 2805.60 673.02 507.97 443.10 674.07 41.10 0.44 3085 27.09 42.53 2917.56 730.80 549.04 483.75 731.75 41.38 1.61 3212 26.78 42.54 3030.78 788.30 591.43 522.64 789.27 41.47 0.24 3339 26.85 42.41 3144.12 845.57 633.69 561.33 846.55 41.53 0.07 3466 26.02 45.41 3257.85 902.09 674.42 600.51 903.03 41.68 1.24 3593 25.48 46.18 3372.24 957.24 712.89 640.06 958.07 41.92 0.50 3720 26.84 46.14 3486.23 1013.20 751.68 680.44 1013.91 42.15 1.07 3847 26.96 46.06 3599.48 1070.63 791.52 721.84 1071.24 42.36 0.10 3974 26.78 46.66 3712.77 1127.99 831.13 763.38 1128.51 42.57 0.26 4099 26.62 46.59 3824.44 1184.11 869.70 804.21 1184.54 42.76 0.13 4225 26.82 47.23 3936.99 1240.71 908.41 845.58 1241.05 42.95 0.28 4352 28.80 46.16 4049.32 1299.90 949.05 888.68 1200.18 43.12 1.61 4475 28.49 42.35 4157.27 1358.84 991.26 929.82 1359.10 43.17 1.51 4601 27.97 43.37 4268.28 1418.42 1034.95 970.35 1418.70 43.16 0.56 4728 26.66 41.96 4381.12 1476.67 1077.79 1009.86 1476.97 43.14 1.15 4853 26.17 42.32 4493.07 1532.23 1119.02 1047.17 1532.57 43.10 0.41 4979 26.17 42.38 4606.15 1587.77 1160.09 1084.60 1588.14 43.07 0.02 5103 26.07 42.37 4720.18 1643.65 1201.40 1122.29 1644.04 43.05 0.08 5233 25.84 42.75 4834.38 1699.21 1242.34 1159.88 1699.63 43.03 0.22 5360 25.65 43.57 4948.77 1754.36 1282.58 1197.61 1754.79 43.04 0.32 5486 25.72 45.86 5062.32 1808.96 1321.38 1236.03 1809.37 43.09 0.79 5613 25.51 46.75 5176.84 1863.83 1359.31 1275.73 1864.19 43.18 0.35 El EPOCH 24 • 0 • M MARATHON OIL COMPANY BC -18 Measured Vertical Rectangular Rectangular Closure Depth Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS ( +) N/S ( -) ( +) E/W ( -) (ft ) (deg) (deg) (ft ) (ft ) (ft ) (ft ) (ft) (deg) ( deg /looft ) 5740 26.04 47.79 5291.21 1918.98 1396.77 1316.29 1919.27 43.30 0.55 5866 26.11 47.78 5404.38 1974.26 1433.99 1357.31 1974.49 43.43 0.06 5993 25.32 48.49 5518.80 2029.24 1470.77 1398.34 2029.41 43.55 0.67 6117 25.02 49.13 5631.03 2081.82 1505.50 1438.03 2081.93 43.69 0.33 6180 25.27 48.24 5688.06 2108.51 1523.17 1458.13 2108.60 43.75 0.72 6243 25.33 47.69 5745.02 2135.37 1541.20 1478.13 2135.45 43.80 0.39 6307 25.48 47.62 5802.83 2162.78 1559.69 1498.42 2162.85 43.85 0.24 6371 25.08 48.02 5860.70 2190.06 1578.04 1518.68 2190.12 43.90 0.68 6434 24.52 46.69 5917.89 2216.45 1595.94 1538.12 2216.49 43.94 1.25 6498 22.95 46.33 5976.47 2242.19 1613.67 1556.81 2242.23 43.97 2.46 6562 22.30 45.81 6035.55 2266.80 1630.75 1574.54 2266.83 44.00 1.06 6623 21.13 43.90 6092.22 2289.36 1646.74 1590.46 2289.39 44.00 2.24 6686 20.16 41.12 6151.17 2311.56 1663.10 1605.48 2311.59 43.99 2.19 6750 18.21 41.88 6211.62 2332.56 1678.86 1619.41 2332.60 43.97 3.07 6813 17.14 43.24 6271.64 _ 2351.68 1692.95 1632.34 2351.72 43.96 1.82 6875 16.25 43.72 6331.03 2369.49 1705.87 1644.59 2369.53 43.95 1.45 6938 14.81 43.91 6391.73 2386.36 1718.05 1656.27 2386.40 43.95 2.29 7000 13.02 43.42 6451.90 2401.26 1728.83 1666.56 2401.31 43.95 2.89 7063 12.01 42.12 6513.41 2414.91 1738.85 1675.84 2414.96 43.94 1.66 7125 10.56 43.47 6574.21 2427.04 1747.75 1684.07 2427.09 43.94 2.38 7189 9.14 42.89 6637.26 2437.98 1755.73 1691.57 2438.03 43.93 2.22 7251 8.12 44.09 6698.56 2447.29 1762.49 1697.97 2447.34 43.93 1.67 7315 7.26 45.87 6761.98 2455.85 1768.55 1704.01 2455.90 43.94 1.39 7378 5.61 45.25 6824.58 2462.91 1773.49 1709.06 2462.95 43.94 2.62 7442 4.85 41.90 6888.32 2468.74 1777.71 1713.09 2468.79 43.94 1.28 7505 3.75 46.81 6951.14 2473.46 1781.10 1716.37 2473.51 43.94 1.84 7569 3.49 49.78 7015.01 2477.49 1783.79 1719.38 2477.53 43.95 0.50 7708 3.15 46.97 7153.78 2485.51 1789.13 1725.40 2485.56 43.96 0.27 El EPOCH 25 • I 1 S n m MARATHON OIL COMPANY BC -18 Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) E/W ( -) (ft ) (deg) (deg) (ft ) (ft ) _ (ft ) (ft ) (ft ) (deg) (deg /100ft) 7835 3.15 38.67 7280.59 2492.47 1794.23 1730.13 2492.52 43.96 0.36 7958 2.97 40.04 7403.41 2499.01 1799.31 1734.30 2499.06 43.95 0.16 8085 2.85 36.95 7530.25 2505.42 1804.35 1738.31 2505.48 43.93 0.16 8212 2.60 38.69 7657.10 2511.42 1809.12 1742.01 2511.48 43.92 0.21 8340 2.26 35.84 7784.99 2516.81 1813.44 1745.30 2516.87 43.90 0.28 8464 2.35 25.62 _ 7908.89 2521.63 1817.71 1747.83 2521.70 43.88 0.34 8590 2.00 23.99 8034.80 2526.14 1822.05 1749.84 2526.22 43.84 0.28 8714 1.74 32.56 8158.73 2530.02 1825.61 1751.74 2530.11 43.82 0.31 8840 1.73 26.47 8284.67 2533.70 1828.93 1753.61 2533.80 43.80 0.15 8966 1.62 18.54 8410.62 2537.11 1832.32 1755.03 2537.22 43.77 0.20 9093 1.45 27.55 8537.57 2540.27 1835.44 1756.34 2540.39 43.74 0.23 9187 1.20 19.40 8631.55 2542.30 1837.43 1757.22 2542.43 43.72 0.33 **9244 1.20 19.40 8688.54 2543.38 1838.55 1757.62 2543.52 43.71 0.00 ** Projected El EPOCH 26 • S I 4D MARATHON OIL COMPANY BC -18 4.2. MUD RECORD Contractor: MI Drilling Fluids Mud Types: Spud Mud 101' - 2127'; 3% KCI Flo -Pro 2127' - 9244' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H2O SD MBT pH Alk CI- Ca+ 1/17/09 101 / 101 8.6 60 17 23 11/15/16 14.6 2 3.0 0/97 25.0 9.0 0.35 800 80 1/18/09 340 / 340 9.0 85 14 32 22/32/33 15.2 2 4.5 0/96 Tr 25.0 8.7 0.15 800 80 1/18/09 755 / 755 8.9 70 15 26 17/27/28 15.2 2 4.1 0/96 Tr 25.0 8.5 0.15 700 80 1/19/09 1500 / 1485 9.0 65 12 32 14/25/27 15.6 2 4.5 0/96 Tr 25.0 8.4 0.10 700 80 1/19/09 2107 / 2054 9.45 55 18 22 10/16/17 8.4 2 7.5 0/93 Tr 22.5 9.1 0.40 500 60 1/20/09 2107 / 2054 9.5 53 17 21 9/15/16 8.2 2 8.0 0/92 Tr 22.5 8.8 0.30 500 60 1/21/09 2107 / 2054 9.4 57 17 21 10/14/15 8.4 2 7.0 0/93 Tr 20.0 8.8 0.20 500 60 1/22/09 2107 / 2054 8.9 50 8 17 7/10/11 7.2 1 4.5 0/96 9.0 0.25 21000 120 1/23/09 2350 / 2268 8.8 46 6 16 8/11/13 8.2 1 3.0 0/97 9.9 0.20 25000 80 1/24/09 2972 / 2817 9.2 51 14 19 9/11/13 5.6 1 4.5 1/95 0.25 2.5 9.8 0.20 22000 160 1/24/09 3819 / 3576 9.4 51 13 21 9/12/ 6.0 1 5.5 1/94 0.2 4.0 9.5 0.15 21000 200 1/25/09 4343 / 4043 9.4 50 13 23 11/14/16 5.9 1 5.5 1/94 0.25 4.5 10.0 0.25 20500 120 1/25/09 4900 / 4532 9.4 55 14 25 12/14/ 6.1 1 5.0 1/94 0.2 5.0 9.5 0.15 20000 120 1/26/09 5541 / 5112 9.5 55 15 27 13/16/18 6.6 1 9.0 1/90 0.3 6.5 9.0 0.05 19000 400 1/26/09 6172 / 5680 9.3 59 14 28 13/15/18 6.2 1 7.5 2/91 0.3 7.5 9.3 0.10 19000 280 1/27/09 6502 / 5979 9.4 64 17 29 13/16/18 5.9 1 7.0 3/90 0.2 8.0 9.6 0.15 18000 160 1/28/09 6930 / 6382 9.5 70 17 35 14/18/21 5.8 1 7.0 4/90 0.2 8.5 10.0 0.25 18000 120 1/28/09 7255 / 5703 9.4 76 18 37 15/21/25 6.0 1 7.0 4/89 0.2 8.75 9.5 0.10 18500 120 1/29/08 7433 / 6879 9.5 68 17 36 13/21/23 6.2 1 8.0 4/88 0.2 9.0 10.0 0.20 19000 160 1/29/09 7623 / 7069 9.5 68 17 35 13/21/ 6.2 1 8.0 5/88 0.2 9.0 9.9 0.20 19500 140 1/30/09 7623 / 7069 9.5 68 16 31 13/18/20 5.6 1 7.5 4/89 0.1 10.5 10.0 0.20 18000 160 1/30/09 7623 / 7069 9.5 68 17 35 13/21/ 6.2 ' 1 8.0 5/88 0.2 9.0 9.9 0.20 19500 140 1/31/09 7623 / 7069 9.6 76 18 37 13/21/24 5.9 1 8.5 4/88 0.2 8.75 10.0 0.20 18000 120 2/01 /09 7623 / 7069 9.5 79 17 32 12/18/22 5.8 1 8.0 4/88 0.15 8.0 9.9 0.20 17500 120 2/01/09 7623 / 7069 9.6 76 18 37 13/21/24 5.9 1 8.5 4/88 0.2 8.75 10.0 0.20 18000 120 El EPOCH 27 • ( M ) MARATHON OIL COMPANY BC -18 Contractor: MI Drilling Fluids Mud Type: 3% KCI Flo -Pro 2127' - 9244' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL/H2O SD MBT pH Alk CI- Ca+ 2/02/09 7623 / 7069 9.5 85 17 39 13/20/22 6.2 1 8.0 4/89 0.1 9.0 9.0 0.10 17000 200 2/03/09 7623 / 7069 9.4 57 16 23 11/15/16 6.4 1 8.3 3/89 Tr 7.0 9.0 0.20 16000 200 2/04/09 7750 / 7196 9.4 53 16 23 8/12/14 7.0 1 8.0 3/90 Tr 6.0 10.1 0.45 17000 160 2/04/09 8514 / 7959 9.4 52 16 22 8/12/14 6.0 1/2 8.0 3/89 Tr 5.0 9.8 0.40 18000 150 2/05/09 9070 / 8514 9.5 53 18 22 7/11/12 5.2 1 8.5 4/88 Tr 6.0 10.1 0.45 21000 120 2/05/09 9244 / 8688 9.5 54 17 23 8/11/12 5.0 1 8.5 4/88 Tr 6.0 10.0 0.45 20000 120 2/06/09 9244 / 8688 9.5 57 17 22 8/12/14 5.0 1 8.5 4/88 Tr 6.0 9.5 0.40 20000 120 2/07/09 9244 / 8688 9.5 55 16 24 8/11/12 5.2 1 8.5 3/89 Tr 6.5 9.9 0.45 21000 120 2/08/09 9244 / 8688 9.5 57 17 22 7/11/12 5.4 1 8.0 3/89 Tr 6.0 9.8 0.40 20000 120 2/09/09 9244 / 8688 9.5 58 16 23 7/11/12 5.2 1 8.5 3/89 Tr 6.0 9.7 0.40 20000 120 2/09/09 9244 / 8688 8.6 28 1 1 KCL Brine 7.7 30000 • El EPOCH 28 1 110 0 I M MARATHON OIL COMPANY BC -18 4.3. BIT RECORD BIT SIZE JETS/ AVE WOB PP NO. TYPE SIN TFA IN OUT FT HRS ROP Lo —Avg — Hi RPM Lo — Avg CONDITION — Hi 1 RR 16" HTC MX -1 6065901 3x16, 101 2107 2006 24.72 103.5 0.2 — 8.9 — 62 306 — 1200 2 - 2 - WT A - E - 1 - SD - TD 1x18cj 42.6 — 1617 2RR 12.25 HCC M1 -XL 5133842 3x18, 2107 2127 20 0.24 100.1 2.8 — 7.1 — 39 532 — 644 2 - 2 - NO A - E - 1/8 - NO - BHA 1 x12cj 13.2 722 3 12.25 HCC 7014669 6x13 2127 7623 5496 81.55 91.1 0.1 — 9.0 — 431 —1120 68 3 4 WT A X 1 - ER - TD HCD506Z 55.3 — 2483 4 NG RRI 12.25 HCC M1 -XL 5133842 Open 7623 7623 0 n/a n/a n/a n/a n/a Clean out run only 5 8.5 HCC DP605 7118417 7x12 7623 9244 1621 18.06 100.7 2.1 — 11.0 — 69 1155 — 1845 0- 0- NO- A- X- 1 -PN -TD 45.5 - 2260 6RR 8.5 HCC MX -1 6054215 3x32 9244 9244 0 n/a n/a n/a n/a n/a NG Clean out run only HI EPOCH 29 DEPTH (FT) • O CO CO J 0) CO A CO Ni O O O O O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 1/15/2009 „ , �,,,, ,,,, ,,, ,,,, ,,,, • 1/16/2009 - 1 /17/2009 r 1/18/2009 1/19/2009 - O O 1/20/2009 m 1/21/2009 1/22/2009 1/23/2009 - 1/24/2009 - D H 1/25/2009 2 O 1/26/2009 Z O O r ` ) 1/27/2009 C7 0 a � )7.1/28/2009 - m c Z 1/29/2009 - co z CO 1/30/2009 - • v n m S 1/31/2009 • (7 x 2/1/2009 • 2/2/2009 • 2/3/2009 - 2/4/2009 - 2/5/2009 - 1 1 co 2/6/2009 • Ni 0) r� 2/7/2009 • o - o fD O 2/8/2009 - • ` w • c) 2/9/2009 • 2/10/2009 - • • • • M MARATHON OIL COMPANY BC -18 5. DAILY REPORTS El EPOCH 31 S Marathon Cr Company EPOCH Beaver Creek Unit DAILY WELLSITE REPORT El BC 18 REPORT FOR Rowland Lawson / Mitch Bums DATE Jan 17, 2009 DEPTH 101 PRESENT OPERATION Preparing to pick up first BHA TIME 24:00 YESTERDAY 101 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 101' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 101 / 101 MW 8.6 VIS 60 PV 17 YP 23 FL 14.6 Gels 11/15/16 CL- 800 FC 2 SOL 3.0 SD 0.0 OIL 0/97 MBL 25.0 pH 9.0 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS al GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continuing rig up operations. Rig up kill line to conductor. Set stack. Rig up directional driller's trailer Rig up derrick board. Repair RPM cable on Topdrive. Plumb in #1 cooling tower. Insulate pump #3 suction and pop off lines. Modify pitcher nipple. Install knife valve. Dress out shakers with DAILY new screens. Rig up ambient gas detectors. Cut and slip geolograph line. Test accumulator. Rotate and reset starting head. Retest void to 500psi ACTIVITY for 10 minutes. Begin install and nipple up of diverter. Begin mixing spud mud. Install modified bell nipple. Rig up bleeder, fill -up and trip tank lines SUMMARY and flow line extension. Install and adjust turnbuckles. Finish nippling up and securing down diverter line. Set pipe racks in place and load with 5" drill pipe and HWDP. Rig up and prepare to pick up pipe. Pick up, make up and stand back 5" drill pipe and 5" HWDP (and jars). Strap all pipe while standing back. Finish mixing spud mud. Calibrate and test all gas alarms. Test diverter. Performance test accumulator. Pick up and install safety valves. Pick up handling tools for making up initial BHA. Test run pump #2. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 595 Rig Up: 2915 REPORT BY Craig Silva • 0 Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Mitch Burns / Rowland Lawson DATE Jan 18, 2009 DEPTH 941 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 101 24 HOUR FOOTAGE 840 CASING INFORMATION 20" © 101' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 163 0.15 337.84 163.00 402 0.22 299.11 402.00 SURVEY DATA 523 0.44 294.02 523.00 760 0.83 271.35 759.99 949 0.93 308.20 948.95 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR 16.0 HTC MX -1 6065901 3x16 1x18cj 101 840 10.55 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 591.5 @ 124 5.8 @ 213 113.1 107.0 FT /HR SURFACE TORQUE 6800 @ 234 1383 © 376 2437.3 2114.5 AMPS WEIGHT ON BIT 22.9 @ 923 0.6 © 463 3.7 6.1 KLBS ROTARY RPM 66 @ 734 4 © 937 48.1 47.2 RPM PUMP PRESSURE 1236 @ 938 306 © 156 760.0 1051.3 PSI DRILLING MUD REPORT DEPTH 755 / 755 MW 8.9 VIS 70 PV 15 YP 26 FL 15.2 Gels 17/27/28 CL- 700 FC 2 SOL 4.1 SD Tr OIL 0/96 MBL 25.0 pH 8.5 Ca+ 80 CCI II MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0.7 @ 267 0 @ 198 0.3 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 140 @ 267 5 @ 198 63.5 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 / 0.5 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LIT HOLOGY Continue working on pump #1 cooling tower. Troubleshoot problems with pump #3. Pick up, make up and run in initial bottom hole assembly (bit, DAILY motor, stabilizer, crosssover, HWDP) for cleaning out conductor and making enough hole to pick up directional tools. Break circulation. Clean out ACTIVITY conductor from 30' to 101'. Spud Well when drilling out of conductor. Drill from 101' to 215'. Circulate bottoms up. Circulate, ream and clean hole. SUMMARY Pull out of hole from 215' to top of stabilizer at 35'. Pick up, make up and run in hole full directional assembly (bit, motor, string stabilizer, pony flex collar, MWD collar, 2 flex collars, 2 crossovers, shock sub, crossover, HWDP). Break circulation and tag bottom 215'. Drill from 215' to 941'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 595 REPORT BY Craig Silva III • Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Rowland Lawson / Mitch Burns DATE Jan 19, 2009 DEPTH 2107 PRESENT OPERATION Pulling out of hole on wiper trip to conductor TIME 24:00 YESTERDAY 941 24 HOUR FOOTAGE 1166 CASING INFORMATION 20" @ 101' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1013 1.06 336.80 948.95 1263 5.00 010.61 1262.63 SURVEY DATA 1516 13.46 032.62 1512.22 1 1767 22.78 034.91 1750.22 2018 28.62 044.85 1976.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR 16.0 HTC MX -1 6065901 3x16 1x18cj 101 2107 2006 24.72 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 235.0 @ 1607 12.1 © 1257 96.7 77.9 FT /HR SURFACE TORQUE 6846 @ 1037 0 @ Sliding 1677.9 4580.6 AMPS WEIGHT ON BIT 42.5 © 1707 1.5 @ 2030 12.7 18.0 KLBS ROTARY RPM 66 @ 2059 0 @ Sliding 15.2 62.0 RPM PUMP PRESSURE 1617 © 2085 927 © 950 1271.0 1515.2 PSI DRILLING MUD REPORT DEPTH 2107 / 2054 MW 9.45 VIS 55 PV 18 YP 22 FL 8.4 Gels 10/16/17 CL- 500 FC 2 SOL 7.5 SD Tr OIL 0/93 MBL 22.5 pH 9.1 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 6 @ 2091 0 © 959 1.4 TRIP GAS CUTTING GAS © © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 1289 © 2091 53 @ 959 275.6 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) © © CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG 0 / 3 PENTANE (C -5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LIT HOLOGY DAILY ACTIVITY Drill (sliding and rotating) from 941' to 2107. Circulate bottoms up. Pump around Hi -Vis sweep. Circulate, clean and condition hole. Pull SUMMARY out of hole from 2107 (to 637) on wiper trip to conductor. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML. 2600 RW: 595 REPORT BY Craig Silva • • Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Rowland Lawson / Mitch Bums DATE Jan 20, 2009 DEPTH 2107 PRESENT OPERATION Running stab -in cementing tool in hole on 5" drill pipe inner string TIME 24:00 YESTERDAY 2107 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 101', 13 3/8" @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2107 (Projection) 29.00 045.00 2054.00 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR 16.0 HTC MX -1 6065901 3x16 1x18cj 101 2107 2006 24.72 2- 2- WT- A- E- 1 -SD -TD Surface Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2107 / 2054 TVD MW 9.5 VIS 53 PV 17 YP 21 FL 8.2 Gels 9/15/16 CL- 500 FC 2 SOL 8.0 SD Tr OIL 0/92 MBL 22.5 pH 8.8 Ca+ 60 CCI MWD SUMMARY INTERVAL TO II TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1 @ WG at 2107 0 @ 1 TRIP GAS CUTTING GAS @ @ WIPER GAS 1 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue pulling out of hole (SLM, with no correction) from 637' to 159' on wiper trip. Pull to 141' (outside conductor) laying down part of upper directional tools (shock sub, 2 crossovers). Lube, service and inspect the Topdrive, crown, blocks and carrier. Run back in hole from 141' to 2054'. Kelly up and wash down from 2054' to 2107' (with no fill). Circulate bottoms up and record 1 unit of wiper gas. Pump and circulate around 40 bbl Hi- Vis Nutplug sweep. Circulate, clean and condition hole. Check for flow. Pull out of hole with 5" drill pipe to 798'. Pull and stand back 5" HWDP and jars to 141'. Break and lay down crossover. Pull and stand back 2 CSNMDPs. Break, lay down and load off remaining directional tools (MWD, NM pony flex collar, NM string stabilizer, motor, bit). Inspect all connections while pulling and laying down bottom hole assembly. Lay down bit handling tools. Clear and clean rig floor. Prepare to run 13 3/8" surface casing. Change out from short to long bails. Lay down pipe elevators. Install pick -up DAILY line. Move breakout tongs to driller's side and install correct tong head. Install fill -up line. Install casing elevators. Rig up casing tongs. Change out ACTIVITY from short to tall snub post. Rig up and test stabbing board. Remove rotary bushings and rig up casing spider slips. Tie one tugger line back in SUMMARY derrick for pipe pick -up and second tugger line back to hang casing tongs. Rig up Weatherford power tongs. Make up and function check EZ -turn valve onto casing swage for safety valve (and record in IADC). Stage centralizers and lock rings on rig floor. Clean casing threads of each shoe track joint before make up. Hold pre -job meeting with Weatherford hands on procedures and safety for running surface casing. Run 13 3/8" casing as per Marathon. Pick up, Bakerlok, make up and run in hole 13 3/8" shoe track (shoe joint, spacer joint, sting -in float collar). Check floats. Continue running in 13 3/8" casing as per Marathon and land at 2097' (with float collar at 2051'). Note slick casing run without tagging fill. Rig down and load off all Weatherford casing running equipment. Rig down fill up line. Clear rig floor. Change out bails, elevators, tongs and snubbing post to handle and run 5" drill pipe. Prep pipe spinner. Make up inner string tools (stab -in sub, 5' pup and centralizer) on 5" drill pipe. Rig up false rotary for running 5" drill pipe inside 13 3/8" casing. Run in hole with 5" drill pipe and stab -in sub (to 1217'). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 595 REPORT BY Craig Silva • Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Rowland Lawson / Dan Byrd DATE Jan 21, 2009 DEPTH 2107 PRESENT OPERATION Preparing to nipple up BOPE TIME 24:00 YESTERDAY 2107 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2107 / 2054 TVD MW 9.4 VIS 57 PV 17 YP 21 FL 8.4 Gels 10/14/15 CL- 500 FC 2 SOL 7.0 SD Tr OIL 0/93 MBL 20.0 pH 8.8 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 1 @ Circ returns to surface 0 @ Circ returns to suface 0 Circ returns to surface TRIP GAS 1 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue running in hole (inside 13 3/8" casing through false rotary) top of float 13 3/8" float collar at 2051'. Tag and sting into float collar and space out. Circulate and condition hole (1 'A casing volumes). Record 1 unit of trip gas. Pump 223 bbls of mud to Hanson Tank prior to cementing. Build 40 bbls Mud Clean II preflush spacer. Rig up cementing lines. Hold pre -job meeting with BJ cementers and vac truck drivers on safety and procedures for cement job. Pump 40 bbls of 8.4ppg Mud Clean II (with 1 gallon red dye added) using rig pumps. Switch over to BJ pumping unit. Pump 3.0 bbls of water to fill cement lines. Pressure test to 2760psi. Bleed off pressure. Batch cement to 12.0ppg. Pump 290.0 bbls of 12.0ppg cement slurry (658 sacks Type I LW -6 cement and accelerator additives to 162.00 bbls of mix water for 10.328 gal water /sack and yield of 2.483 cu ft per sack). Pump cement slurry and then follow with 33.4 bbls of 9.4ppg mud to displace. Note continuous problems with BJ pumping unit losing power and maintaining 5 bpm pump rate. Bleed off pressure. Check floats. Cement in place. Shoe set at 2097' and float collar set at 2051.80'. No losses during pumping with 40 bbls good excess cement returns back to surface. Cement returns treated with citric acid retarder. Rig down and DAILY flush cementing head and lines and continue rigging down BJ. Unsting from float collar. Float holding. Pull out of hole from 2051' to 1980' and rig up ACTIVITY to pump ball down pipe. Pump wiper ball down to clear drill pipe of any residual cement. Treat all mud returns for traces of cement product. Dump SUMMARY returns during and after pumping ball. Finish pumping. Rig up false rotary table and pull out of hole with 5" drill pipe from 1980' to surface. Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). Rig down false rotary. Flush, re -flush and drain 20" by 13 3/8" annulus, flowline and all mud lines. Pull plate. Clear and clean rig floor and cellar. Flush #3 mud pump. Wait on cement. Prep diverter for nipple down. Begin pumping out and hauling off spud mud and start cleaning pits. Nipple down and remove diverter line and knife valve. Disconnect turnbuckles to stack and secure out of the way. Nipple down and rig down fill -up line, bleeder line, trip tank line, flow line, flow line extension, kill line, 2" valve, accumulator lines, actuator, bell nipple and scaffolding. Remove and lay down mousehole. Change out HCR valve Remove all but 2 bolts on stack. Make rough cut on 13 3/8" casing and lay down stub section. Rig up drill pipe elevators. Finish cleaning the pits. Finish nippling down the last components of the diverter stack and then move out of the cellar and mount on stand. Remove and load off 21 1/4" sliplock starter head. Make cut on 20" conductor. Make final cut on 13 3/8" casing and then dress out stub. Install 13 3/8" sliplock connection by 13 5/8" 5M flanged multibowl wellhead. Energize seals and test wellhead to 1500psi for 10 minutes. Nipple down single gate. Change oil in #1 and #2 carrier motors. Install new discharge line on hopper. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 595 REPORT BY Craig Silva 0 Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Rowland Lawson / Dan Byrd DATE Jan 22, 2009 DEPTH 2107 PRESENT OPERATION Picking up 5" drill pipe TIME 24:00 YESTERDAY 2107 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2107 / 2054 TVD MW 8.9 VIS 50 PV 8 YP 17 FL 7.2 Gels 7/10/11 CL- 21000 FC 1 SOL 4.5 SD 0 OIL 0/96 MBL 0.0 pH 9.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS @ © TRIP GAS CUTTING GAS © © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) © @ CONNECTION GAS HIGH ETHANE (C -2) @ © AVG PROPANE (C -3) © © CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Clean up and de -ice around sub -base catwalk and gray iron. Set pipe racks in place next to catwalk. Set spool and HCR on stack. Set stack and nipple up of 13 5/8" 5M BOPE. Retighten PLC plugs. Weld out plate to finalize installation of new discharge line. Finish cleaning pits. Fill pits with water and begin mixing new Flo -Pro mud. Pick up and re- install mousehole. Nipple up and rig up all BOP attachements and accessory equipment (fill -up line, bleeder line, trip tank line, flow line, flow line extension, kill line, 2" valve, accumulator lines, actuator, bell nipple, drip pan and DAILY scaffolding). Re- connect and secure turnbuckles to stack. Prepare to test BOPE. Pull wear ring. Set test plug. Rig up testing equipment. Function ACTIVITY check BOPE. Fix connection on HCR and leak on choke line. Test all BOPE to 250psi Low / 3000psi High for 10 minutes (annular, upper pipe SUMMARY rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside kill, HCR, manual choke, lower pipe rams, blind rams, CMVs 1 -12). Finish mixing mud, loading pipe racks with 5" drill pipe and strapping pipe while testing BOPE. Perform accumulator drawdown test. Test all gas alarms. Rig down BOPE test equipment. Pull test plug. Rig up casing test equipment and test 13 3/8" casing to 1500psi for 30 minutes. Rig down test equipment. Install wear ring. Blow down choke and mud lines. Install elevators. Pick up and prepare pipe handling tools on rig floor. Begin picking up, rabbiting, drifting, making up, running in hole, pulling out standing back in the derrick and strapping pre- staged 5" drill pipe off the pipe racks. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 595 REPORT BY Craig Silva • Marathon Oil Company • Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Rowland Lawson / Dan Byrd DATE Jan 23 2009 DEPTH 2252 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 2107 24 HOUR FOOTAGE 145 CASING INFORMATION 13 3/8" @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2134 28.40 44.62 2077.95 2198 28.51 45.09 2134.21 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2RR 12.25 HCC M1 -XL 5133842 3x18 1x12cj 2107 2127 20 0.24 2- 2- NO- NO- E- 2/16 -NO -BHA Pick up MWD 3 12.25 HCC HCD506Z 7015669 6x13 2127 125 0.95 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 212.3 @ 2193 56.3 @ 2122 137.5 104.5 FT /HR SURFACE TORQUE 6503 @ 2183 3266 @ 2189 4356.2 4004.6 AMPS WEIGHT ON BIT 27 @ 2183. 2.8 @ 2112 11.7 11.8 KLBS ROTARY RPM 42 @ 2188 37 @ 2121 40.5 41.8 RPM PUMP PRESSURE 1515 @ 2107 493 @ 2250 651.6 629.8 PSI DRILLING MUD REPORT DEPTH 2350 / 2267 TVD MW 8.8 VIS 46 PV 6 YP 16 FL 8.2 Gels 8/11/13 CL- 25000 FC 1 SOL 3.0 SD 0 OIL 0/97 MBL 0.0 pH 9.9 Ca+ 80 CCI MWD SUMMARY 41111 INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 3.4 @ 2239 0.5 @ 2110 1.6 TRIP GAS 1 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 780 © 2107 99 @ 2110 314 7 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 1 / 5 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone, Tuffaceous Siltstone, Sand /Sandstone, Tuffaceous Sandstone, Volcanic Ash. Minor Coal, Conglomeratic Sand /Conglomerate PRESENT SAND TUFFACEOUS CLAYSTONE LITHOLOGY Continue picking up, rabbiting, drifting, making up, running in hole, pulling out standing back in derrick and strapping pre- staged 5" drill pipe off the pipe racks. Pick up, make up and run in hole new bottom hole assembly to clean out shoe (bit, motor, NM stabilizer, pony NMDC, 2 NMCSDP flex joints, crossover). Dress flex collar threads. Make up crossover to first stand of HWDP from derrick and run in hole with HWDP and jars to 762'. Continue running in hole with 5" drill pipe to 1773'. Wash down from 1773' and tag cement at 2045'. Drill cement from 2045' and tag float collar at DAILY 2051'. Drill out float equipment and remaining shoe tract (cement, shoe at 2097', rathole) to 2107'. Drill 20' of new hole from 2107' to 2127'. ACTIVITY Circulate bottoms up. Continue to circulate briefly over shakers and then overboard returns while displacing. Displace the old 9.4ppg spud mud SUMMARY with a 30 bbl lead spacer of water, followed by a 45 bbl Hi -Vis sweep and 280 bbls of new 8.7ppg Flo -Pro NT. Cease pumping and perform Formation Integrity Test to 12.0ppg EMW (3590psi, 2072'tvd, 8.7ppg). Blow down. Pull out of hole from 2127' to surface. Break and lay down mill tooth bit. Pick up and make up PDC bit. Pick up and make up MWD collar into directional assembly (bit, motor, NM stabilizer, pony NMDC, NM MWD, 2 NMCSDP flex joints, crossover). Orient MWD too. Run in hole with directional tools and HWDP to 798'. Test MWD tool. Continue running in hole with 5" drill pipe to 2063'. Break circulation and wash down from 2063' to 2127'. Record 1 unit of trip gas. Drill from 2127' to 2252'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 595 REPORT BY Craig Silva IIII Marathon Oil Company • Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Rowland Lawson /Dan Byrd DATE Jan 24, 2009 DEPTH 3910 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 2252 24 HOUR FOOTAGE 1658 CASING INFORMATION 13 3/8' @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 3720 26.84 46.14 3486.23 3847 26.96 46.06 3599.49 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCD506Z 7015669 6x13 2127 1658 16.44 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 180.0 @ 3734 20.0 © 3087 108.1 101.5 FT /HR SURFACE TORQUE 8069 @ 3841 787 @ 3655 5226.1 6833.1 AMPS WEIGHT ON BIT 18 @ 3841 1 @ 3712 6.3 9.7 KLBS ROTARY RPM 68 © 3837 0 @ 3650 59.8 64.5 RPM PUMP PRESSURE 1179 @ 3843 431 @ 2253 871.1 1093.6 PSI DRILLING MUD REPORT DEPTH 3819 MW 9.4 VIS 51 PV 13 YP 21 FL 6 Gels 9/12/ CL- 21000 FC 1/ SOL 5.5 SD 0.2 OIL 1/94 MBL 4 pH 9.5 Ca+ 200 CCI MWD SUMMARY INTERVAL TO III TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 9 @ 3700 .4 © 3199 4.3 TRIP GAS na CUTTING GAS @ © WIPER GAS na CHROMATOGRAPHY (ppm) SURVEY na METHANE (C -1) 1903 © 3701 110 @ 3148 821.9 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 4/6 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Tuffaceous claystone, Tuffaceous siltstone, Sand/ sandstone DAILY ACTIVITY SUMMARY Drill from 2252' - 3901' EPOCH PERSONNEL ON BOARD 4 DAILY COST ML:$3400, RW: $595 REPORT BY Ralph Winkelman • Marathon Oil Company 0 Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Rowland Lawson / Dan Byrd DATE Jan 25, 2009 DEPTH 4997 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 3911 24 HOUR FOOTAGE 1086 CASING INFORMATION 13 3/8 @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3974 26.78 46.66 3712.77 4225 26.82 47.23 3936.99 SURVEY DATA 4475 28.49 42.35 4157.27 4728 26.66 41.96 4381.12 4979 26.17 42.38 4606.15 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCD506Z 7015669 6x13 2127 2870 28.53 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 160.7 @ 4533 20.7 @ 4386 104.4 76.6 FT /HR SURFACE TORQUE 12056 © 4346 0 @ Sliding 7137.7 7862.36 AMPS WEIGHT ON BIT 23.2 @ 4905 1.2 @ 4010 6.6 10.66 KLBS ROTARY RPM 71 @ 4786 0 @ Sliding 47.1 6.4 RPM PUMP PRESSURE 1367 @ 4670 787 @ 4386. 1074.6 895.1 PSI DRILLING MUD REPORT DEPTH 4900 / 4535 TVD MW 9.4 VIS 55 PV 14 YP 25 FL 6.1 Gels 12/14 CL- 20000 FC 1 SOL 5.0 SD 0.2 OIL 1/94 MBL 5.0 pH 9.5 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 12 © 4124 0 © 4355 4.4 TRIP GAS CUTTING GAS @ @ WIPER GAS 2 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 2359 © 4109 88 © 4355 848.9 CONNECTION GAS HIGH ETHANE (C -2) © @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Tuffaceous Sandstone, Volcanic Ash, Conglomeratic Sand, Coal. PRESENT SAND /SANDSTONE TUFFACEOUS CLAYSTONE . TUFFACEOUS SILTSTONE LITHOLOGY DAILY Drill from 3910' to 4343'. (Note dyanmic losses of 20 bph, static losses of 3 bph). Circulate bottoms up. Circulate hole clean and spot 47 bbl ACTIVITY LCM pill. Check for flow. Pull out of hole from 4343' to 2063' (inside shoe) on wiper trip. Clean rig floor. Slip 33' of drill line. Service rig. Grease SUMMARY crown. Check crown -o- matic. Run back in hole from 2063' to 4279'. Wash down from 4279' to bottom at 4343' (with no fill). Record 2 units of wiper gas. Drill from 4343' to 4997'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML:3400 RW: 595 REPORT BY Craig Silva • Marathon Oil Company • Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Rowland Lawson / Dan Byrd DATE Jan 26, 2009 DEPTH 6204 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 4997 24 HOUR FOOTAGE 1207 CASING INFORMATION 13 3/8" @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5106 26.07 42.37 4720.18 5360 25.65 43.57 4948.77 SURVEY DATA 5613 25.51 46.75 5176.84 5993 25.32 48.49 5518.80 6180 25.27 48.24 5688.06 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCD506Z 7015669 6x13 2127 3897 43.03 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 249.0 © 5415 9.8 © 6180 91.9 62.4 FT /HR SURFACE TORQUE 17053 © 6138 0 © Sliding 9393.3 8969.2 AMPS WEIGHT ON BIT 32 @ 5417 0.5 @ 5308 9.3 12.2 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1297 @ 5612 844 @ 5098 1021.7 991.1 PSI DRILLING MUD REPORT DEPTH 6172 / 5681 TVD MW 9.3 VIS 59 PV 14 YP 28 FL 6.2 Gels 13/15/18 CL- 19000 FC 1 SOL 7.5 SD 0.3 OIL 2/91 MBL 7.5 pH 9.3 Ca+ 280 CCI III MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 54 @ 5592 2 @ 5428 13.9 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 10995 © 5592 515 @ 5428 2766.6 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG 2 / 10 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand /Conglomerate, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash. Minor Coal, Tuffaceous Shale. PRESENT SAND /SANDSTONE CONGLOMERATIC SAND /CONGLOMERATE LITHOLOGY DAILY ACTIVITY Drill from 4997' to 5668'. Troubleshoot PLC problems. Drill from 5668' to 6048'. Troubleshoot continuing PLC problems. Correct PLC SUMMARY wiring problem. Drill from 6048' to 6204'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 595 REPORT BY Craig Silva • Marathon Oil Company • Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR Rowland Lawson / Dan Byrd DATE Jan 27, 2009 DEPTH 6560 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6204 24 HOUR FOOTAGE 356 CASING INFORMATION 13 3/8" @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6243 25.33 47.69 5745.02 6307 25.48 47.62 5802.83 SURVEY DATA 6371 25.08 48.02 5860.70 6434 24.52 46.69 5917.89 6498 22.95 46.33 5976.47 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCD506Z 7015669 6x13 2127 4433 51.05 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 140.1 @ 6492 3.6 @ 6446 62.1 33.9 FT /HR SURFACE TORQUE 16645 @ 6342 0 © 6560 8129.7 729.3 AMPS WEIGHT ON BIT 44.7 @ 6504 1.3 @ 6237 11.7 10.0 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1469 @ 6342 952 @ 6232 1188.5 1220.57483 PSI DRILLING MUD REPORT DEPTH 6502 / 5980 TVD MW 9.4 VIS 64 PV 17 YP 29 FL 5.9 Gels 13/16/18 CL- 18000 FC 1 SOL 7.0 SD 0.2 OIL 3/90 MBL 8.0 pH 9.6 Ca+ 160 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 28 © 6542 1 @ 6238 7.8 TRIP GAS CUTTING GAS © @ WIPER GAS 9 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 5795 © 6542 263 @ 6238 1552 CONNECTION GAS HIGH ETHANE (C -2) © © AVG PROPANE (C -3) © @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 6 / 16 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand /Conglomerate, Tuffaceous Sandstone, Tuffaceous Claystone, Volcanic Ash. Minor Tuffaceous Siltstone. PRESENT SAND /SANDSTONE........CONGLOMERATIC SAND /CONGLOMERATE TUFFACEOUS SANDSTONE LITHOLOGY DAILY Drill from 6204' to 6235'. Circulate bottoms up twice to clean and condition hole. Check for flow. Pull out of hole from 6235' on wiper trip to ACTIVITY shoe. Pull to 5604'. Pump dry job. Blow down surface lines. Continue pulling out of hole to 2063' (just inside shoe). Service carrier, Topdrive SUMMARY and #3 mud pump. Monitor well. Run back in hole from 2063' to 6175'. Wash down from 6175' to bottom at 6235'. (Observe 5' of fill). Record 9 units of wiper gas. Drill (rotating and sliding) from 6235' to 6560'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 635 REPORT BY Craig Silva • Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Dan Byrd DATE Jan 28, 2009 DEPTH 7283 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6560 24 HOUR FOOTAGE 723 CASING INFORMATION 13 3/8" © 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6562 22.30 45.81 6035.55 6750 18.21 41.88 6211.62 SURVEY DATA 6938 14.81 43.91 6391.73 7125 10.56 43.47 6574.21 7251 8.12 44.09 6698.56 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCD506Z 7015669 6x13 2127 5156 67.79 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 116.2 @ 6961 3.3 @ 7261 59.7 30.1 FT /HR SURFACE TORQUE 16710 @ 7154 0 @ Sliding 6363.3 9797.7 AMPS WEIGHT ON BIT 55.2 @ 6819 0.7 @ 7208 12.4 9.6 KLBS ROTARY RPM 73 @ 6846 0 @ Sliding 63.0 68.4 RPM PUMP PRESSURE 2483 @ 7060 1135 @ 6568 1621.0 2003.4 PSI DRILLING MUD REPORT DEPTH 7255 / 5703 TVD MW 9.4 VIS 76 PV 18 YP 37 FL 6.0 Gels 15/21/25 CL- 18500 FC 1 SOL 7.0 SD 0.2 OIL 4/89 MBL 8.75 pH 9.5 Ca+ 120 CCI fib MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 28 @ 6653 1 @ 7068 10.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 5785 @ 6653 160 @ 6883 1989.3 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 3 / 9 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand /Conglomerate, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash. Minor Coal /Carbonaceous Shale. PRESENT CONGLOMERATIC SAND /CONGLOMERATE . LITHOLOGY DAILY ACTIVITY SUMMARY Dr;ill (sliding and rotating) from 6560' to 7283'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 635 REPORT BY Craig Silva • Marathon Oil Company • Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Dan Byrd DATE Jan 29, 2009 DEPTH 7623 PRESENT OPERATION Pulling out of hole TIME 24:00 YESTERDAY 7283 24 HOUR FOOTAGE 340 CASING INFORMATION 13 3/8" @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7315 7.26 45.87 6761.98 7378 5.61 45.25 6824.58 SURVEY DATA 7442 4.85 41.90 6888.32 7505 3.75 46.81 6951.14 7569 3.49 49.78 7015.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCD506Z 7015669 6x13 2127 5496 81.55 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 136.2 © 7294 3.1 @ 7385 41.6 37.9 FT /HR SURFACE TORQUE 18600 © 7564 0 © Sliding 9027.6 14270.4 AMPS WEIGHT ON BIT 54.5 @ 7383 1.8 © 7295 17.3 15.9 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2223 @ 7598 1244 @ 7434 1880.0 2088.0 PSI DRILLING MUD REPORT DEPTH 7623 / 7069 TVD MW 9.5 VIS 68 PV 17 YP 35 FL 6.2 Gels 13/21 CL- 19500 FC 1 SOL 8.0 SD 0.2 OIL 5/88 MBL 9.0 pH 9.9 Ca+ 140 CCI S MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 12 @ 7294 1 @ 7515 5.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 2582 © 7294 259 @ 7495 1006.0 CONNECTION GAS HIGH ETHANE (C -2) @ © AVG PROPANE (C -3) @ © CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand /Conglomerate, Tuffaceous Sandstone,Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash. Minor Coal PRESENT SAND /SANDSTONE TUFFACEOUS SANDSTONE . VOLCANIC ASH LITHOLOGY DAILY Drill (sliding and rotating) from 7283' to Intermediate Casing Point at 7623' (note dynamic losses at 4 bph, static losses at 2 bph ). Circulate ACTIVITY bottoms up. Circulate clean and condition hole. Pull out of hole from 7623' to 5921' on wiper trip. (Pull tight at 6860', 6660', 6510', 6435', 6240' SUMMARY to 5921' on way out). Run back in hole from 5921' to 7560'. Start to break circulation but system immediate appears plugged. Unable to circulate after several attempts. Un known blockage in drill string. Prepare to pull out of hole. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 635 REPORT BY Craig Silva 0 Marathon Oil Company III Beaver Creek DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Dan Byrd DATE Jan 30, 2009 DEPTH 7623 PRESENT OPERATION Making up clean out run assembly TIME 24:00 YESTERDAY 7623 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 7623 (Projection) 3.30 50.00 7068.92 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCD506Z 7015669 6x13 2127 7623 5496 81.55 3- 4- W1- A- X- 1 -ER -TD Intermdiate casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7623 / 7069 TVD MW 9.5 VIS 68 PV 17 YP 35 FL 6.2 Gels 13/21/ CL- 19500 FC 1 SOL 8.0 SD 0.2 OIL 5/88 MBL 9.0 pH 9.9 Ca+ 140 CCI MWD SUMMARY INTERVAL TO TOOLS is GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS © @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Prepare to pull out of hole with plugged drill pipe. Monitor well. Fill trip tank. Blow down mud lines. Begin pulling wet out of hole from 7623' (SLM with no correction). When pulling, discover abundant pipe- shaped cement pieces in drill pipe. (Cement in pipe is residual from surface cement job). Clear and clean cement as each stand is pulled. Inspect all connections the rest of the way of drill pipe, HWDP and directional tools for cement and /or galling. Pull out of hole from 7623' to top of bottom hole assembly at 798'. Pull and stand back 5" HWDP to 292'. Pull and lay down jars. Pull and stand back last 2 stands of HWDP to 141'. Pull, break, inspect and lay down all directional tools (crossover, 2 NMCSDP flex joints, NM MWD, DAILY pony NMDC, MN stabilizer, bit). Check filter sub on top of MWD before laying down and observe that sub screen is completely packed off with ACTIVITY cement fragments. Grade bit. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline SUMMARY logging tools. Hang sheaves and rig up wireline running equipment. Pick up, make up and run in hole WINS Quad -Combo logging assembly. Load sources for neutron tools on way in. Encounter ledge at 5852' while running in. Work logging assembly down to 5909' but unable to get past. Pull to surface with logging assembly. Unload sources. Change assembly configuration by breaking and laying down 2 -arm caliper. Reload sources. Run in hole WINS Quad -Combo logging assembly. Encounter ledge at 5856' while running in. Work logging assembly down to 5890' and eventually break free. Continue running logging assembly to near bottom at 7616'. Log up from with Quad -Combo assembly from 7616' to casing shoe at 2097'. Pull wireline assembly out of hole. Unload sources. Break and lay down logging tools. Rig down WWS surface running equipment. Clear and clean rig floor. Pick up, measure, and make up rock bit, bit sub and crossover. Make up to first stand of 5" HWDP and begin running in hole. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW. 635 Consulting: 1300 REPORT BY Craig Silva I 0 Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Dan Byrd DATE Jan 31, 2009 DEPTH 7623 PRESENT OPERATION Pulling out of hole after clean out run TIME 24:00 YESTERDAY 7623 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" © 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 4RR1 12.25 HCC M1 -XL 5133842 Open 7623 7623 0 n/a In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7623 / 7069 TVD MW 9.6 VIS 76 PV 18 YP 37 FL 5.9 Gels 13/21/24 CL- 18000 FC 1 SOL 8.5 SD 0.2 OIL 4/88 MBL 8.75 pH 10.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS al GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 11 @ reaming at 5860 0 @ before POOH 2 overall reaming TRIP GAS 11 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in hole with 5" HWDP (and jars) to 661'. Rig up 2 3/4" drift to check 5" drill pipe for cement while being run in out the derrick. DAILY Run 5" drill pipe in hole from 661' to 5720', laying down the last 2 stands ( #80, #81) on way in. Break circulation at 5720', staging up pump rate. fill on bottom. Pump SUMMARY around 30 bbl weighted Hi -Vis sweep (at 300spm, 600gpm). Record 2 units of trip gas. Continue to circulate and clean hole. Spot 48 bbl LCM pill (to 4000' in annulus) and follow with 30 bbl dry job. Lay down single with saver sub. Begin pulling out of hole with 5" drill pipe from 7623'. Pull through tight spots at 5911' and 5848'. Continue pulling out of hole from 5848' to 4141'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 3260 RW: 635 REPORT BY Craig Silva 0 • Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Dan Byrd DATE Feb 01, 2009 DEPTH 7623 PRESENT OPERATION Running in hole with 9 5/8" casing TIME 24:00 YESTERDAY 7623 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2097' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ © KLBS ROTARY RPM © @ RPM PUMP PRESSURE © @ PSI DRILLING MUD REPORT DEPTH 7623 / 7069 TVD MW 9.6 VIS 76 PV 18 YP 37 FL 5.9 Gels 13/21/24 CL- 18000 FC 1 SOL 8.5 SD 0.2 OIL 4/88 MBL 8.75 pH 10.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE el DITCH GAS 0.5 © Brief flow back on fill -ups 0 @ 0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) © @ CONNECTION GAS HIGH ETHANE (C -2) © @ AVG PROPANE (C -3) © @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG 0 / 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue pulling out of hole with clean out assembly (from 4141') to surface. Break and lay down bit, bit sub and crossover. Blow down mud lines. Clear and clean rig floor. Pick up single from catwalk and break out saver sub. Remove drill pipe elevators and short bails. Install long bails and pick -up sling -line. Install casing elevators. Prep to make gauge run with 9 5/8" casing hanger. Pull wear bushing. Close annulus valve. Using single joint elevators, drift BOPS with landing joint and hanger with Vetco -Gray witnessing,. Mark elevation on landing joint. Change variable pipe rams to 9 5/8" casing rams. Test 9 5/8" rams to 250psi Low / 3000psi High for 30 minutes. Change out saver sub and grabber dies. Torque saver sub. DAILY Move breakout tongs to driller's side and install correct tong head. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. ACTIVITY Rig up casing spider slips. Rig up and function stabbing board. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test SUMMARY and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Hold pre -job meeting with all hands on procedures and safety for running surface casing string. Inspect rig -up. Pick up shoe joint and start run -in. Run in hole with 9 5/8" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Pick up and make up shoe track (shoe joint, 1 spacer joint, float collar, "float joint ") and run in hole to 121'. Circulate casing volume through shoe track and check float equipment. Continue running 9 5/8" casing in hole as per Marathon. Attach centralizers as per tally and fill every joint on way in. Run casing from 121' to 3213'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 3260 RW: 635 REPORT BY Craig Silva • • Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Dan Byrd DATE Feb 02, 2009 DEPTH 7623 PRESENT OPERATION Post cementing operations TIME 24:00 YESTERDAY 7623 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 2412' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7623 / 7069 TVD MW 9.5 VIS 85 PV 17 YP 39 FL 6.2 Gels 13/20/22 CL- 17000 FC 1 SOL 8.0 SD 0.1 OIL 4/89 MBL 9.0 pH 9.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 1.5 @ TG at 7612 0 @ 0.5 TRIP GAS 1.5 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue running 9 5/8" casing in hole as per Marathon. Attach centralizers as per tally and fill every joint on way in. Run casing from 3213' to 3526'. Break circulation and fill pipe. Record 1 unit maximum gas. Continue running 9 5 /8" casing in hole from 3526' to 7590'. Break circulation. Pick up and wash down from 7590' to landing depth of 7612'. Record 1 unit maximum gas while washing down. Remove slips and land hanger on load shoulder in multi -bowl wellhead. Drain stack and verify landing. Break circulation and continue to circulate and condition well. Circulate bottoms up and record 1.5 units of trip gas. Continue to circulate while BJ works on starting up their cold weather - affected cementing trucks and pressure testing the cementing van's internal lines. Cease circulating and blow down mud lines. Make up cementing head with top and bottom plugs pre - installed. Continue to circulate and condition mud with rig pumps prior to cement job. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Continue circulating while 72 bbls of 10.5ppg lead cement is batch mixed . Finish batch mixing lead cement. Finish circulating with rig pumps. Blow air through cementing lines and valves to clear. Switch to BJ pumping unit. Pump 2.0 bbls of water and pressure test lines to 2921 psi. Bleed off and line out to pump spacer. Open up bottom valve and drop first (bottom) plug. Mix and pump 20.3 bbls of DAILY 10.0ppg SealBond spacer (using 18.48 bbls of mix water), followed by 193.0 bbls of both pre -mixed and batched -in 10.5ppg lead cement slurry ACTIVITY (327 sacks of Class G cement plus accelerator chemicals mixed with 98.08 bbls water to batch -up at 12.61 gal /sk and yield of 3.32 cu -ft/sk) and SUMMARY then 40.0 bbls of batched in 15.8ppg tail cement slurry (191 sacks of Class G cement plus accelerator chemicals mixed with 22.59 bbls water to batch -up at 4.97 gal /sk and yield of 1.18 cu- ft/sk). Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 4.3 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 575.0 bbls (12334 strokes) of mud (and 579.3 bbls total displacement). Bump plug with 720psi over - pressure (and 1430psi total pressure). Bleed off. Check floats. Cement in place. Note 100% returns during displacement. Begin wait on cement. Flush down, blow down and rig down BJ cementing head and cement lines. Blow down Topdrive, mud lines and mud pumps. Back out and lay down casing hanger landing joint. Remove casing elevators, long bails and pick up sling line. Install short bails. Remove and lay down Lafleur fill -up tool. Install drill pipe elevators. Move hanging sheave for breakout tongs to driller's side and install correct tong head. Pull and lay down casing spider slips. Load off the casing spider slips, casing elevators, long bails and Lafleur fill -up tool. Fold up stabbing board. Clear and clean rig floor. Make up 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and successfully test packoff to 5000psi for 10 minutes. Close blind rams. Change out upper 9 5/8" casing rams to 2 7/8" by 5 1/2" variable pipe rams. Swap tongs and rig up pipe • spinner. Reset and realign torque tube. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 3260 RW: 635 REPORT BY Craig Silva Marathon Oil Company ID Beaver Creek Unit DAILY WELLSITE REPORT HI EPOCH BC 18 REPORT FOR John Nicholson / Dan Byrd DATE Feb 03, 2009 DEPTH 7623 PRESENT OPERATION Picking up joints of 5" drill pipe and running in hole TIME 24:00 YESTERDAY 7623 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 7612' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5 8.5 HCC DP605 7118417 7x12 7623 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM © @ RPM PUMP PRESSURE @ © PSI DRILLING MUD REPORT DEPTH 7623 / 7079 MW 9.4 VIS 57 PV 16 YP 23 FL 6.4 Gels 11/15/16 CL- 16000 FC 1 SOL 8.3 SD Tr OIL 3/89 MBL 7.0 pH 9.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 © Brief MWD test 0 @ Brief test 0 Brief test TRIP GAS CUTTING GAS @ © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) © © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Finish readjusting torque tube. Finish rigging down stabbing board. Pump 300 bbls of old mud in pits over to Hanson Tank to make room for new Flo -Pro mud. Begin diluting mud in pits with 100 bbls of water and adding chemicals. Slip and cut drill line. Run in test plug. Rig up testing equipment. Test annular preventer to 250psi Low /3000psi High for 10 minutes. Observe freezing problems after first test. Suspend testing due to frozen lines. Prep and set up steam lines and MagTec hot air blowers. Begin thawing out choke line, rotary hose and Topdrive. Continue testing all DAILY BOPE to 250psi Low /3000psi High for 10 minutes (upper pipe rams, check valve, dart valve, upper Topdrive IBOP, floor valve, lower Topdrive ACTIVITY IBOP, outside kill valve, inside kill valve, NCR; manual choke, CMVs 1 -12, safety valve). Service CMV 7. Perform accumulator drawdown test. SUMMARY Test all gas alarms. Pull test plug. Rig down testing equipment. Set wear bushing. Clean rig floor and prep for casing test. Test casing to 1700psi for 30 minutes. Blow down all lines. Finish thawing kelly hose and reinstall to Topdrive. Pick up, make up and run in hole lower section of new directional assembly (bit, motor, NM stabilizer, pony NMDC, MWD). Orient MWD tools. Dress monel threads. Make up and run in hole remaining directional tools (2 NMCSDP flex joints, steel crossover). Make up crossover to first stand of 5" HWDP from derrick and run in hole with HWDP (plus jars) and 1 stand of 5" drill pipe to 859'. Test MWD pulse signal. Prep to pick up drill pipe. Pick up pre- staged, prepped and strapped joints of 5" drill pipe off of the catwalk/pipe racks, make up and run hole (to 1112'). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 3260 RW: 635 REPORT BY Craig Silva 0 • Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT [1 EPOCH BC 18 REPORT FOR John Nicholson / Mitch Bums DATE Feb 04, 2009 DEPTH 8530 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 7623 24 HOUR FOOTAGE 907 CASING INFORMATION 9 5/8" @ 7612' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7708 3.15 46.97 7153.78 7958 2.97 40.04 7403.41 SURVEY DATA 8212 2.60 38.69 7657.10 8340 2.26 35.84 7784.99 8590 2.00 23.99 8034.80 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5 8.5 HCC DP605 7118471 7x12 7612 907 9.45 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 216.5 @ 8201 12.0 @ 7631 107.0 92.7 FT /HR SURFACE TORQUE 15461 @ 7944 8632 @ 8008 12503.8 13519.5 AMPS WEIGHT ON BIT 24.4 © 8328 2.2 @ 7695 10.1 15.6 KLBS ROTARY RPM © @ RPM PUMP PRESSURE 2032 @ 7671 1155 @ 7624 1771.1 1887.9 PSI DRILLING MUD REPORT DEPTH 8514 / 7959 TVD MW 9.4 VIS 52 PV 16 YP 22 FL 6.0 Gels 8/12/14 CL- 18000 FC 1 SOL 8.0 SD Tr OIL 3/89 MBL 5.0 pH 9.8 Ca+ 150 CCI II MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 68 @ 8132 0 @ 7627 11.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 13123 © 8132 109 @ 7627 2308.4 CONNECTION GAS HIGH ETHANE (C -2) @ © AVG PROPANE (C -3) @ © CURRENT BUTANE (C -4) © © CURRENT BACKGROUND /AVG 7 / 25 PENTANE (C -5) @ © HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Conglomeratic Sand /Conglomerate, Tuffaceous Sandstone. Minor Coal /Carbonaceous Shale, Calcareous Tuff. PRESENT SAND /SANDSTONE CONGLOMERATIC SAND /CONGLOMERATE TUFFACEOUS SANDSTONE LITHOLOGY Continue to pick up up, make up and run in hole joints of 5" drill pipe (54 joints/ 27 stands total) to 2569'. Continue running in hole with stands of DAILY 5" drill pipe out of the derrick to 7441'. Break circulation and briefly condition mud. Wash down with pipe out of derrick from 7441' and tag float ACTIVITY collar at 7529'. Drill out float equipment and remaining shoe tract (cement, shoe at 7612', rathole) to 7623'. Drill 20' of new hole from 7623' to SUMMARY 7643'. Circulate bottoms up. Displace old Flo -Pro mud with clean Flo-Pro mud on the fly while drilling new hole and circulating out. Cease circulating and blow down surface lines. Perform Formation Integrity Test (9.4ppg, 960psi, 7069tvd) to 12.0ppg EMW. Drill from 7643' to 8530'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 635 REPORT BY Craig Silva • Marathon Oil Company • Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Mitch Bums DATE Feb 05, 2009 DEPTH 9244 PRESENT OPERATION Circulating bottoms up after wiping trip to shoe TIME 24:00 YESTERDAY 8530 24 HOUR FOOTAGE 714 CASING INFORMATION 9 5/8" @ 7612' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8714 1.74 32.56 8158.73 8840 1.73 26.47 8284 67 SURVEY DATA 8966 1.62 18.54 8410.62 9093 1.45 27.55 8537.57 9187 1.20 19.40 8631.55 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5 8.5 HCC DP605 7118417 7x12 7623 1621 18.06 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 185.3 @ 9144 16.4 @ 8954 92.8 86.7 FT /HR SURFACE TORQUE 15772 @ 8804 8826 @ 9016 12641.9 12322.1 AMPS WEIGHT ON BIT 45.5 @ 8734 2.3 @ 9024 12.1 9.8 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2260 @ 9047 1222 @ 8594 1942.5 1987.1 PSI DRILLING MUD REPORT DEPTH 9244 / 8688 TVD MW 9.5 VIS 54 PV 17 YP 23 FL 5.0 Gels 8/11/12 CL- 20000 FC 1 SOL 8.5 SD Tr OIL 4/88 MBL 6.0 pH 10.0 Ca+ 120 CCI 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 80 @ 8797 3 @ 9180 24.0 TRIP GAS CUTTING GAS @ @ WIPER GAS 121 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 16056 @ 8797 699 @ 9180 4805.3 CONNECTION GAS HIGH ETHANE (C -2) 8 @ 8797 0 @ 0.6 AVG PROPANE (C -3) © © CURRENT BUTANE (C -4) @ © CURRENT BACKGROUND /AVG 7 / 28 PENTANE (C -5) @ © HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Coal /Carbonaceous Shale. Minor Tuffaceous Sandstone, Volcanic Ash, Conglomeratic Sand /Conglomerate, Calcareous Tuff. PRESENT TUFFACEOUS CLAYSTONE.. TUFFACEOUS SILTSTONE.......... LITHOLOGY Drill from 8530' to 8764'. Experiencing ongoing problem with Topdrive hydraulics. Change #2 carrier Denison pump drive line. Circulate out while working on drive line. Continue drilling from 8764' to BC18 Total Depth of 9244'. Circulate bottoms up and continue to circulate hole clean. Pull DAILY out of hole from 9244' to 7612' on wiper trip. On way out, work through various tight spots, including kellying up and washing out from 8198' to ACTIVITY 7818'. Service rig and Topdrive. Repair mud line valve on #2 mud pump. Tighten stabbing board hydraulic fittings. Repair leak on on #2 carrier SUMMARY motor power- steering pump. Run back in hole from 7612' to 9075'. Break circulation. Wash down from 9075' to 9184', and wash and ream from 9184' to bottom at 9244' (with 1' of fill). Circulate bottoms up. Record 121 units of wiper gas. Continue circulating to clean and condition hole. Work on and remedy problems with #1 and #2 mud pumps while circulating. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 635 REPORT BY Craig Silva • Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Mitch Burns DATE Feb 06, 2009 DEPTH 9244 PRESENT OPERATION Wireline logging TIME 24:00 YESTERDAY 9244 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" © 7612' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9244 (Projection) 1.20 19.40 8688.54 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 6 8.5 HCC DP605 7118417 7x12 7623 9244 1621 18.06 0- 0- NO- A- X- 1 -PN -TD TD of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ © AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9244 / 8688 TVD MW 9.5 VIS 57 PV 17 YP 22 FL 5.0 Gels 8/12/14 CL- 20000 FC 1 SOL 8.5 SD Tr OIL 4/88 MBL 6.0 pH 9.5 Ca+ 120 CCI MWD SUMMARY INTERVAL TO • TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 70 @ continuing circ after WT 1 @ before POOH 35 circulating after WT TRIP GAS CUTTING GAS @ © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ © CURRENT BUTANE (C -4) © © CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue circulating to clean and condition hole. Continue working on #1 mud pump while circulating. (Change out center liner, 1 and 2 swabs). Pump around Hi -Vis sweep (at 213spm, 426gpm, 1700psi). Cease pumping when sweep is around. (Gas circulated down to 1 unit). Pull out of hole 5 stands from 9244' to 8953'. Break circulation and pump dry job. Continue pulling out of hole (SLM) from 8953' to top of bottom hole assembly at 795' (with no correction). Pull and stand back 11 stands of 5" HWDP (21 joints plus jars) to 139'. Break, lay down and load off directional tools (crossover sub, 2 NMCSDP flex joints, MWD plus filter sub, NM pony collar, NM string stabilizer, X -treme motor, bit). Grade bit. (Note no sign of DAILY galling on connections, but filter sub plugged with cement and all 3 jets on bit are plugged). Clear and clean rig floor. Blow down mud lines. Lay ACTIVITY down handling tools. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging SUMMARY tools. Stage logging tools on catwalk. Hang sheaves and rig up wireline running equipment. Pick up, make up and run in hole Weatherford's Quad - Combo logging assembly. Load sources for neutron tools. Run in hole to 9231' (13' from bottom). Log up from with WWS Quad -Combo assembly from 9031' to 7612'. Run back in hole and make repeat logging pass from 8800' to 8400'. Pull back up inside the shoe at 7612' and continue to pull wireline assembly out of hole. Unload sources. Break and lay down Quad -Combo logging tools. Stage and make up WWS MFT logging tools on catwalk. Pick up and run in hole with MFT logging assembly to just inside shoe at 7600'. Wait at this depth while pressure point determinations are being made by Marathon Geology. Receive pressure point list from Marathon geologist and run in hole with MFT assembly to first test point at 9003'. Log up MFT tool, testing pressure points from 9003' to 8838'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 Consulting: 1300 REPORT BY Craig Silva • Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Mitch Burns DATE Feb 07, 2009 DEPTH 9244 PRESENT OPERATION Pulling out of hole laying down 5" drill pipe TIME 24:00 YESTERDAY 9244 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 7612' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 6RR 8.5 HCC MX -1 6054215 3x32 9244 9244 0 0 In Hole Clean out run DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9244 / 8688 TVD MW 9.5 VIS 55 PV 16 YP 24 FL 5.2 Gels 8/11/12 CL- 21000 FC 1 SOL 8.5 SD Tr OIL 3/89 MBL 6.5 pH 9.9 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS 40 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 70 © TG at 9244 1 @ before POOH 28 circulating out first time TRIP GAS 70 CUTTING GAS © © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue logging up with MFT tool, testing pressure points from 8838' to 7710'. (Attempt 68 total tests, with 44 successful). Pull MFT wireline DAILY assembly out of hole and lay down logging tools on catwalk. Rig down WWS surface running equipment. Pick up handling tools. Pick up and ACTIVITY make mill tooth bit and bit sub with float to bottom of HWDP to clean hole. Run in hole with clean out assembly (filling pipe on way in at 4714' and SUMMARY 7612'). Hit ledge at 9132'. Break circulation and work through ledge. Wash and ream from 9132' to bottom at 9244' (with no fill). Circulate bottoms up. Record 70 units of trip gas. Continue to circulate until shakers are clean. Cease pumping and monitor well. Pump dry job. Begin pulling out of hole from 9244' laying down 5" drill pipe (to 8849'). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 REPORT BY Craig Silva • • Marathon Cr Company EPOCH Beaver Creek Unit DAILY WELLSITE REPORT El BC 18 REPORT FOR John Nicholson / Mitch Burns DATE Feb 08, 2009 DEPTH 9244 PRESENT OPERATION Running in hole with 3 1/2" EXCAPE completion string TIME 24:00 YESTERDAY 9244 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 7612' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM © @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9244 / 8688 TVD MW 9.5 VIS 57 PV 17 YP 22 FL 5.4 Gels 7/11/12 CL- 20000 FC 1 SOL 8.0 SD Tr OIL 3/89 MBL 6.0 pH 9.8 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) © © CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue pulling out of hole laying down 5" drill pipe (from 8849') to top of 5" at 660'. Blow down mud lines. Remove corrosion ring from last joint of drill pipe. Pull and lay down 5" HWDP, jars, bit sub and bit. Remove float from bit sub. Pull wear bushing. Pick up, make up and set 3 1/2" test joint. Test variable rams to 250psi Low / 1700psi High for 5 minutes. Pull and lay down test joint. Clear and clean rig floor. Lay down make up tongs. Rig down and load off all rig floor bit subs, drill pipe tools, rotary tools, spinners, and tongs. Prepare for highline operations to run in EXCAPE production modules and tubing. Hold pre -job meeting with all hands on procedures and safety for running 3 1/2" EXCAPE completion string. DAILY Change out bails and elevators. Pick up, install and rig up Weatherford tongs, casing running tools, handling tools and accessory equipment. Install ACTIVITY fill -up tool. Rig up Weatherford fill -up line, circulating line, and floor valves. Use crane to position sheave with control lines previously fed through SUMMARY and aligned. Pull down to floor and tie off the 2 control lines and a protector dummy line. Rig up Pollard Wireline Service to perform banding of control lines. Inspect and insure that previously staged out modules are in correct order on short pipe rack. Six (6) modules are to be run. Begin running in hole with 3 1/2" EXCAPE completion string as per Marathon program. Pick up, make up and run in shoe tract (Davis Lynch Float Shoe, 1 standard joint, Davis Lynch Float Collar). Check floats. Continue to carefully pick up, make up and run in hole to 1256', the modules section of the completion string (Davis Lynch float tools, 6 EXCAPE modules, 29 standard joints, 10 pup joints, chemical injection assembly). Break circulation and circulate out. Continue running in hole with 3 1/2" EXCAPE casing to 2472'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 3400 RW: 635 REPORT BY Craig Silva 0 1 Marathon Oil Company 0 Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 18 REPORT FOR John Nicholson / Mitch Burns DATE Feb 09, 2009 DEPTH 9244 PRESENT OPERATION Beginning nipple down of stack after cementing production string in place TIME 24:00 YESTERDAY 9244 24 HOUR FOOTAGE 0 CASING INFORMATION 3 1/2" @ 9929.89' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM © @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9244 / 8688 TVD MW 9.5 VIS 58 PV 16 YP 23 FL 5.2 Gels 7/11/12 CL- 20000 FC 1 SOL 8.5 SD Tr OIL 3/89 MBL 6.0 pH 9.7 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 8 @ TG at 9222 1 © at last displacing 2 after peak gases TRIP GAS 8 CUTTING GAS © © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) © @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running 3 1/2" EXCAPE completion string in hole from 2472' to 7588' (just inside 9 5/8" shoe). Rig up circulating head and line. Begin circulating, bringing pumps up slowly. Circulate casing volume (66 bbls at 80spm, 495psi, 156gpm). Cease pumping and continue running in hole with 3 1/2" casing from 7588' to 9222'. Terminate control lines and cable. Lower down sheave with crane and then rig down and load off. Rig up circulating head and line. Circulate while reciprocating pipe. Circulate bottoms up. Record 8 units of trip gas. Continue circulating (12000 total strokes at 895psi, 108spm, 213gpm). (Note inhibitor was slowly added to the mud system in the 24 hours before cementing commenced). Stop pumping and check for flow. Rig up Expro Wireline Service equipment and hold brief pre -job meeting on wireline operations. Run in hole with gamma correlation log to determine perforating positions of EXCAPE modules. Log up from 9174' to 7150' and pull out of hole with wireline gamma tool assembly. Do correlation determination with gamma log. Note that the the shoe will be adjusted down 7.0' to 9229.89'. Rig down Expro WLS. Add pup joint and space out. Lay down pipe tongs. Hold pre -job safety meeting with BJ on cementing procedures and safety for cement job. Rig up DAILY cementing head and line up to BJ cementers. Head will have plug installed and a wash -up tee. Pump 6.1 bbls of water to fill lines. Pressure test ACTIVITY cementing lines to 3028psi. Mix and pump 40.3 bbls of 11.0ppg Sealbond Spacer, using 37.40 bbls of water. After sweep, pump 155.0 bbls of SUMMARY 15.8ppg cement slurry (736.5 sacks of Class G cement plus accelerator chemicals mixed with 86.6 bbls water to obtain 4.939 gal /sk and yield 1.176 cuft/sk). Close valve to head and open wash -up valve. Pump 13.4 bbls water to wash lines from floor out to slop tank until returns are clean. Close wash up valve and open to head. Drop plug and pump out with 2.6 bbs of KCL brine. Displace cement with 82.3 bbls of 6% KCI brine. (Total displacement is 84.9. bbls). Record maximum 6 units of gas while displacing. Did not bump plug. Float did not hold. Hold at 1135psi. Bleed back 1 bbl and then put 1 bbl back in. Hold at 1195psi. Bleed back 1 bbl and then put 1 bbl back in. Hold at 1150 to 1330psi. Bleed off and put 0.5 bbl back in. Hold at 1170 to 1325 psi. Shut in at head. Total adjusted displacement at 82.5 bbls. No losses during cement job. No returns to surface. Cement in place. Begin waiting on cement. Flush, blow down and rig down cementing head and lines. Flush, washout and blow down stack. Lay down cementing head. Clear and clean rig floor. Flush and blow down all mud pumps, mix pumps and pump lines, choke manifold and choke lines, mud manifold, fill and trip lines, overhead and mud pump -out lines and desilter. Rinse, clean and pump out trip tank. Clean up sub -base. Unchain and prepare stack for nipple down. Remove drip pan. a l EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 REPORT BY Craig Silva 0 Marathon Cr Company EPOCH Beaver Creek Unit DAILY WELLSITE REPORT El BC 18 REPORT FOR John Nicholson / Mitch Burns DATE Feb 10, 2009 DEPTH 9244 PRESENT OPERATION Rig down operations TIME 24:00 YESTERDAY 9244 24 HOUR FOOTAGE 0 CASING INFORMATION 3 1P' @ 9229.89' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9244 / 8688 TVD MW 8.6 VIS 28 PV 1 YP 1 FL Gels CL- 30000 FC KCL Brine SOL SD OIL MBL pH 7.7 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS III GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Load off drip pan. Rig down bleeder. Rig down fill -up and trip tank lines. Remove top and bottom spacer spool. Start pumping mud and other fluids out to vac trucks for haul -off. Change water pump. Change out thermostat on #2 carrier. Check for pressure before rigging down cementing head (no pressure). Rig down cementing head. Begin nipple down of riser, choke, and kill lines. Rig up Expro Wireline Service equipment and hold brief pre -job meeting on wireline operations. Run in hole with cement bond log and tag top of cement at 8710'. Log up from 8710' to 6700'. Record top of cement in annulus at 6850'. Pull out of hole with logging assembly and rig down EWS. Install extension pup to lift out riser. Pull and remove riser. Break and lay down extension pup. Rig down #3 mud pump. Begin cleaning pits. Lay down mousehole. Begin loading out pipe racks. Rig down work platform. Rig down flow nipple, choke line, kill line, fill -up line and turnbuckles. Rig down accumulator lines and panic line. Rig down standpipe DAILY manifold. Remove kill line check valve and chokeline hardline. Finish cleaning all pits and hauling off remaining fluids. Begin loading up trailers and ACTIVITY hauling off rig and third party equipment that is no longer required off to the Kenai Gas Field. Rig up bridge cranes to BOP stack. Unbolt and pickup SUMMARY stack. Pull 3 1/2" casing to 100K and set 85K weight on slips. Rough cut 3 1/2" casing above slips and lay down landing joints. Nipple down and remove BOP stack and spool. Set stack on rack. Make final clean cut on 3 1/2" casing and dress. Run control lines through 3 1/2" packoff to tubing bonnet assembly. Terminate control lines with Swagelok fittings. Set and install packoff. Run in lock -down pins. Test packoff to 5000psi for 10 minutes. Run control lines out tubing head outlet. Nipple up 13 5/8" 5M by 3 1/16" 10M tubing head adaptor to the 3 1/16" 10M tree. Rotate tree. Terminate control lines through the bottom flange. Set 2 -way check valve in tubing hanger. Test void to 5000psi. Fill tree with methanol and test to 10000psi for 10 minutes. Rig up and attempt to test 3 1/2" casing to 2100psi for 30 minutes, but no test after failing to sustain pressure. Install BPV. Install EXCAPE control line warning sign. Completion is to be done without a rig. Proceed with rigging down and moving all Glacier No.1 rig modules, rig equipment, support trailers, communication equipment, camp trailers and camp accessory equipment to the KBU 11 -17X location. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2600 RW: 635 Rig down: 2125 REPORT BY Craig Silva al