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211-135
MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE:Wednesday, June 12, 2024 SUBJECT:Mechanical Integrity Tests TO: FROM:Josh Hunt P.I. Supervisor Petroleum Inspector NON-CONFIDENTIAL Cook Inlet Natural Gas Storage Alaska, LLC S-2 CANNERY LOOP UNIT S-2 Jim Regg InspectorSrc: Reviewed By: P.I. Suprv Comm ________ JBR 06/12/2024 S-2 50-133-20599-00-00 211-135-0 G SPT 4928 2111350 1500 1323 1324 1324 1324 0 0 0 0 4YRTST P Josh Hunt 4/25/2024 Retest of MIT. The well was shut in and J. Regg notified. Per J. Regg, CLU S-2 test result changed from Fail to Pass based on additional diagnostics performed by CINGSA; see letter dated 5/29/2024. 30 MinPretestInitial15 Min Well Name Type Test Notes: Interval P/F Well Permit Number: Type Inj TVD PTD Test psi API Well Number Inspector Name:CANNERY LOOP UNIT S-2 Inspection Date: Tubing OA Packer Depth 304 1821 1786 1760IA 45 Min 60 Min Rel Insp Num: Insp Num:mitJDH240524144400 BBL Pumped:1.7 BBL Returned:1.7 Wednesday, June 12, 2024 Page 1 of 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 99 9 9 9 9 9 9 LU S-2 test result changed from Fail to Pass based on additional diagnostics performed by CINGSA; see letter dated 5/29/2024 James B. Regg Digitally signed by James B. Regg Date: 2024.06.12 16:00:21 -08'00' MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE:Wednesday, June 12, 2024 SUBJECT:Mechanical Integrity Tests TO: FROM:Josh Hunt P.I. Supervisor Petroleum Inspector NON-CONFIDENTIAL Cook Inlet Natural Gas Storage Alaska, LLC S-2 CANNERY LOOP UNIT S-2 Jim Regg InspectorSrc: Reviewed By: P.I. Suprv Comm ________ JBR 06/12/2024 S-2 50-133-20599-00-00 211-135-0 G SPT 4928 2111350 1500 1323 1323 1323 1324 0 0 0 0 4YRTST I Josh Hunt 4/25/2024 This test lost 43 psi in the first 15 minutes, 28 psi in the second 15 minutes, and 25 psi the final 15 minutes. We ran the test an extra 15 to see if it would stabilize. We bled the IA down and added another block valve to eliminate any surface leaks on test equipment. Per J. Regg, the test result was deemed Inconclusive. 30 MinPretestInitial15 Min Well Name Type Test Notes: Interval P/F Well Permit Number: Type Inj TVD PTD Test psi API Well Number Inspector Name:CANNERY LOOP UNIT S-2 Inspection Date: Tubing OA Packer Depth 290 1832 1789 1761IA 1323 0 45 Min 1736 60 Min Rel Insp Num: Insp Num:mitJDH240425180346 BBL Pumped:1.8 BBL Returned:1.8 Wednesday, June 12, 2024 Page 1 of 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9lost 43 psi in the first 15 minutes 28 psi in the second 15 minutes 25 psi the final 15 minutes deemed Inconclusive James B. Regg Digitally signed by James B. Regg Date: 2024.06.12 15:57:47 -08'00' Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov May 29, 2024 Stan Saner CINGSA Supervisor Cook Inlet Natural Gas Storage Alaska P.O. Box 190989 Anchorage, AK 99519-0989 RE: Docket Number: OTH-24-023 Cannery Loop Unit S-2 (PTD 2111350) Request to Operate Dear Mr. Saner: Cook Inlet Natural Gas Storage Alaska’s (CINGSA) letter dated May 16, 2024, requests approval to continue operating gas storage well Cannery Loop Unit (CLU) S-2 following its most recent mechanical integrity testing that failed two attempts to demonstrate pressure stabilization. An Alaska Oil and Gas Conservation Commission (AOGCC) inspector witnessed both attempts. CINGSA promptly shut in CLU S-2. CINGSA and AOGCC staff met on May 14, 2024, to discuss the test results for CLU S-2 and results of subsequent diagnostic testing. Your formal request to continue gas storage well operations using CLU S-2 included the diagnostic results presented during the May 14 meeting and other supporting information – as requested. AOGCC concurs with CINGSA’s assessment that CLU S-2 can safety operate based on the small total pressure loss during the 30-minute mechanical integrity tests coupled with the results of additional diagnostics, and the historical pressure trend for the well’s tubing-casing and casing-casing annuli. Well CLU S-2 may be returned to gas storage operations. Sincerely, Brett W. Huber, Sr. Chair, Commissioner cc: Jaemy Garcia (jaegarcia@asrcenergy.com) Doug Cismoski (dcismoski@asrcenergy.com) Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.05.30 09:17:47 -08'00' Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 Anchorage, AK 99519-0989 Main: 907-334-7980 Fax: 907-334-7671 www.cingsa.com May 16, 2024 Chairman Brett Huber, Sr. Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Re: Cannery Loop Unit S-2 (PTD #211135). Request to operate. Dear Chairman Huber, CINGSA requests approval to operate gas storage well Cannery Loop Unit S-2 (CLU S-2). The well is currently shut in. CLU S-2 underwent its 4-year mechanical integrity test of the inner annulus (MIT-IA) on April 25, 2024. Two MITs were attempted but failed on pressure stabilization criteria. The rule-of- thumb definition for stabilization is that the loss in the 2nd 15 minutes of a 30-minute test should be approximately less than half of the loss in the 1st 15 minutes. CLU S-2’s pressure loss trend did not meet this requirement. The first MIT-IA was carried out to a 45-minute duration and the pressure loss during each 15- minute interval decreased. The second MIT-IA to the same pressure as the first lost less pressure during its initial 15-minute interval than the first MIT-IA. Test #1 Test #2 IA Press delta Cumul Delta %IA Press delta Cumul Delta % Pre-Test 290 304 Test Start 1832 1821 15 min 1789 -43 2.3%1786 -35 1.9% 30 min 1761 -28 3.9%1760 -26 3.3% 45 min 1736 -25 5.2% CINGSA has determined that CLU S-2 has sound mechanical integrity and is safe to operate in its current condition based on the following factors: x 04/25/24: The MIT’s exhibited small total pressure losses and a decreasing pressure loss over time indicating some stabilization. x 04/25/24: The MIT’s required small volumes to reach test pressure, indicating the fluid level was near surface and has been near surface since 2020 MIT’s. o 1st MIT: 1.79 bbl pumped & returned. o 2nd MIT: 1.70 bbl pumped & returned. By Samantha Coldiron at 10:01 am, May 22, 2024 x 04/29/24: Applied 1000 psi to the IA and monitored. The IA has maintained 1000 psi with no increase in OA pressure. x 05/02/24: PPPOT-IC and PPPOT-T passed, verifying wellhead seal integrity. x Historical pressure trends show IA and tubing maintaining 1000 –1500 psi differential pressure. Based on the above factors and observations, CINGSA believes that CLU S-2 is safe to operate and has sound mechanical integrity. CINGSA appreciates the AOGCC’s consideration of this request. If you have any questions, please call me at 907-398-0836. Sincerely, Stan Saner CINGSA Supervisor Attachments TIO Plot, 04/30/20 –04/30/24 TIO Data since 4/25 MIT-IA Wellbore Schematic cc: Jim Regg Bryan McLellan y, Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 Anchorage, AK 99519-0989 Main: 907-334-7980 Fax: 907-334-7671 www.cingsa.com TIO Plot, 04/30/20 –04/30/24 Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 Anchorage, AK 99519-0989 Main: 907-334-7980 Fax: 907-334-7671 www.cingsa.com TIO Data since 4/25 MIT-IA (increased IAP to 1000 psi on 4/29 to monitor) Date IA OA Tubing Well Status 04/25/24 290 0 1295 Withdrawal 04/26/24 270 0 1216 Shut-in (SI) 04/27/24 260 0 1328 SI 04/28/24 245 0 1335 SI 04/29/24 1000 0 1336 SI 04/30/24 1000 0 1336 SI 05/01/24 1000 0 1336 SI 05/02/24 1000 0 1352 SI 05/03/24 1000 0 1351 SI 05/04/24 1000 0 1354 SI 05/05/24 1000 0 1375 SI 05/06/24 1000 0 1416 SI 05/07/24 1000 0 1468 SI 05/08/24 1000 0 1408 SI 05/09/24 1000 0 1378 SI 05/10/24 990 0 1348 SI 05/11/24 990 0 1366 SI 05/12/24 990 0 1375 SI 05/13/24 990 0 1372 SI 05/14/24 990 0 1368 SI Clark Olsen ASRC Consulting & Environmental Services, LLC Well Site Leader (907) 252-2248 colsen@asrcenergy.com 1 March 25, 2024 Alaska Oil and Gas Conservation Commission Natural Resource Technician 333 W 7th Ave, Suite 100 Anchorage, Alaska 99501 RE: DATA TRANSMITTAL - WELL: CINGSA CLU S-2 PTD: 211-135 API: 50-133-20599-00-00 Initial Data Transmittal of x Sigma Analysis using RMT3D – 03/13/2024 x RMT3D Processed Log LAS file – 03/13/2024 Data Transfer Folder: CINGSA Well Logs Subfolders: 211-135 CLU Storage 2 Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: 211-135 T38670 Meredith Guhl Digitally signed by Meredith Guhl Date: 2024.03.26 13:14:16 -08'00' MEMORANDUM TO: Jim Regg 515 I eezo P.I. Supervisor heC FROM: Brian Bixby Petroleum Inspector NON -CONFIDENTIAL State of Alaska Alaska Oil and Gas Conservation Commission DATE: Friday, April 24, 2020 SUBJECT: Mechanical Integrity Tests Cook Inlet Natural Gas Storage Alaska, LLC S-2 CANNERY LOOP UNIT S-2 Sre: Inspector Reviewed By: P.I. Sop" J 1� Comm Well Name CANNERY LOOP UNIT S-2 API Well Number 50-133-20599-00-00 Inspector Name: Brian Bixby IOSp Num: mitBDB200423111920 Permit Number: 211-135-0 Inspection Date: 4/21/2020 - Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well S-2 Type Inj TVD 4928 - Tubing nl7 1127- 1129 - u3o PTD 2111350 Type Test SPT iTest psi 1500 IA 195 2104 2066 - 2075 - BBL Pumped: 2.4 BBL Returned: 2.4 OA 0 0 0 0 Interval 4YRTST p/F P Notes: --_ - - Friday, April 24, 2020 Page 1 of I CLU S -z - Pb ZI11�-50 Regg, James B (CED) From: Regg, James B (CED) ��j�pG (���� I2Izq Sent: Thursday, April 23, 2020 7:43 AM ( l To: Stan Saner Subject: RE: MIT test form of CLU -1 thru CLU -5 on 4-21-2020 As general guidance regarding our acceptance criteria (10% or less total pressure loss in 30 minutes and stabilizing pressure loss). CLU 5-2 (PTD 2111350) should have been held a least an additional 15 minutes for stabilization; 1'r 15min lost 38psi, 2nd 15min lost 31psi. A general rule -of -thumb definition for stabilization is the 2nd 15min should be approximately half of the first 15min pressure loss (Again, that is not a rigid requirement for a passing test but a general guidance we typically apply in the field). I'm leaving S-2 as a pass; please use this guidance for future MITs. Thank you. Jim Regg Supervisor, Inspections AOGCC 333 W.7'" Ave, Suite 100 Anchorage, AK 99501 907-793-1236 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jim Regg at 907- 793-1236 or iim.rez¢@alaska.zov. From: Stan Saner <Stan.Saner@cingsa.com> Sent: Wednesday, April 22, 2020 8:19 AM To: Brooks, Phoebe L (CED) <phoebe.brooks@alaska.gov>; Regg, James B (CED) <jim.regg@alaska.gov>; DOA AOGCC Prudhoe Bay<doa.aogcc.prudhoe. bay@alaska.gov>; Wallace, Chris D (CED) <chris.waIlace @alaska.gov> Cc: Matthew Federle <Matthew.FedeHe@cingsa.com> Subject: MIT test form of CLU -1 thru CLU -5 on 4-21-2020 Please find attached MIT test form performed on 4-21-2020. Stan Saner CINGSA Maintenance/Operations 1377 Beaver Loop Rd. Kenai, AK. 99611 Email stan.sanerPEnstarnaturalxas.com Wk.# 907-714-7582 Fax.# 907-714-7589 Cell # 907-398-0836 The contents of this e-mail message and any attachments are confidential and are intended solely for addressee. The information may also be legally privileged. This transmission is sent in trust, for the sole purpose of delivery to the intended recipient. If you have received this transmission in error, any use, reproduction or dissemination of this transmission is strictly prohibited. If you are not the intended recipient, • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE: Wednesday,April 13,2016 TO: Jim Regg Qll 4I 1 f tp P.I.Supervisor ( SUBJECT: Mechanical Integrity Tests COOK INLET NATURAL GAS STORAGE A S-2 FROM: Brian Bixby CANNERY LOOP UNIT S-2 Petroleum Inspector Src: Inspector Reviewed By: P.I.Supry �� NON-CONFIDENTIAL Comm Well Name CANNERY LOOP UNIT S-2 API Well Number 50-133-20599-00-00 Inspector Name: Brian Bixby Permit Number: 211-135-0 Inspection Date: 4/5/2016 Insp Num: mitBDB160406111049 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min ----- - --- Well S-2 - Type Inj G 'TVD 4928 ' Tubing 1533 - 1533 1532 - 1532 - PTD j 2111350 - Type Test SPT Test psi, 1500 - IA 200 j 2100 , 2050 - 2040 - -- --- ------ -- Interval4YRTST P/F P / OA CFI_ 0 0 0 Notes: SCANNED SEP 2 7 2016 Wednesday,April 13,2016 Page 1 of 1 r r0 0 0 9 CO 2 Tr 0 Tr N �. 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V O N- J g Q O CO C ao0 V o Cr_ v' 0 E I a a`) - I 0 0 0 0 0 p d Z o ° Cl)o0 1 o a 2 1 J J J w 3 0 a 0 0 I 0 rr / / r--- Cook Inlet Natural-Gas 3000 Spenard Road PBox 1e si : RA �...,._ Anchorage, AK AK 99519-0989 GS July 30, 2012 6*Ce' Alaska Oil &Gas Conservation Commission ��� 333 W 7th Avenue, Suite 100 v U Anchorage,AK 99501 AO Z�1z� GSC Re: Cook Inlet Natural Gas Storage Alaska, LLC(CINGSA) Report of Sundry Well Operations— 10-404 CLU Storage 2 (Permit No. 2 ) _m Attached, please find Report of Sundry Well Operations Form 10-404 for CINGSA's CLU Storage 2, and associated Daily Report of Well Operations, well schematic, and perforation log. This well has been returned to injection service. If you have any questions concerning the foregoing, please contact Rick Gentges at 907-310- 7322. Sincerely, . aid M. Colleen Starring Vice President Enclosure as stated STATE OF ALASKA ALA; OIL AND GAS CONSERVATION COMMIJ,ION REPORT OF SUNDRY WELL OPERATIONS cCvt- 1.Operations Abandon Repair Well Li Plug Perforations ❑ Perforatet] Other U Clean out fill Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number:211135 Name: Cook Inlet Natural Gas Storage Alaska,LLC Development ❑ Exploratory ❑ - 3.Address: Stratigraphic❑ Service ❑✓ 6.API Number: P.O.Box 190989,Anchorage,AK 99519 50-133-20599-0000 7.Property Designation(Lease Number): 8.Well Name and Number: ADL 391627 — CLU Storage 2 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): Perforation Record Cannery Loop/Sterling Gas Storage Pool 11.Present Well Condition Summary: Total Depth measured 8,693 feet Plugs measured none feet true vertical 5,107 feet Junk measured none feet Effective Depth measured 8,608 feet Packer measured 7,604 feet true vertical 5,089 feet true vertical 4,928 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 117.5' 20" 117.5' 117.5' n/a n/a Surface 2,719' 133/8" 2,719' 2,414' 3,450 1,950 Intermediate 7,746' 9 5/8" 7,746' 4,955' 5,750 3,090 Production Liner 971' 7" 8,575' 5,110' 7,240 5,410 Perforation depth Measured depth see attach. feet True Vertical depth see attach. feet Tubing(size,grade,measured and true vertical depth) 7"26# L80 7,604' 4,928' Packers and SSSV(type,measured and true vertical depth) BHI 9 5/8"ZXPN Halliburton 7"FXE SSSV Pkr-7,604'/4,928' SSSV-179'/179' 12.Stimulation or cement squeeze summary: Cleaned out fill material using 6%KCL,Clay Guard,and 70 quality foam treatment. Intervals treated(measured): 7,790'-8,490'MD Treatment descriptions including volumes used and final pressure: Ran in hole with mill/motor and washed to 8,490'with 70 quality foam. Total treatment vol. 123.4 Bbls. Recovered 131 Bbls. Final circulating pressure was 2455 psi. Re-perforated per attached schematic. 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 10,200 600 725 Subsequent to operation: 15,600 550 800 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run Perforation Record Exploratory❑ Development❑ Service ❑, Stratigraphic ❑ Daily Report of Well Operations 16.Well Status after work: Oil ❑ Gas ❑ WDSPL❑ 6/21/2012 -6/23/2012 and 7/5/2012 -7/12/2012 GSTOR Q , 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: t� 2 312191 and 312239 Contact \--e____C.\C � �\A.Cs S 9)I --132%. Printed Name N'1 . C.,0\\f-CO SAN 1 v Y,', Title V j Ge, peesV.\-- Signature ✓1Z. 02• atiwiPhone 'j.t----V-1 OSIS Date 1 1 3o I \2.. RBDMS AUG U 12011y'<<-'� Form 10-404 Revised 11/2011 /42-74,. Submit Original Only /Z- Date Daily Well Operations Summary CLU Storage 2 6/21/2012 RU Pollard and pull SSSV. Rig up BJ Services coil and perform BOP test. 6/22/2012 Clean out fines to TD with 70Q foam.Total fluid used 123.4 Bbls; recovered 131 Bbls. 6/23/2012 Rig up Pollard and set SSSV;valve leaked. Pull valve and replaced seals. Re-set SSSV; valve held w/o leakage. 7/3/2012 RigupPollard and pull SSSV. 7/6/2012 RU Schlumberger E Line. RIH with 30', 2 7/8"gun,4 spf. Tractor to 7908' and encounter fill. POOH and lay down gun. 7/7/2012 RIH with 10'gun and tractor to 8323';tractor unable to pass fill. Pull up hole and pump 16 Bbls soap; tractor still not able to pass. Pull up to 8185' and re-perforate 8185'- 8195'. POOH. 7/8/2012 Re-perforate 8185'-8155', 8225'-8195', and 8040'-8010'. 7/9/2012 Re-perforate 8000'-7970',7970'-7940', and 7940'-7910'. 7/10/2012 Re-perforate 7910'-7880',7790'-7760', and 7720'-7690'. RD from well. 7/11/2012 RU Weatherford and flow back well to separator to clean up perfs. Total flow 649 Mcf. RD Weatherford 7/12/2012 RU Pollard, purge control line and set SSSV. Valve held w/o leakage. RD Pollard. Job complete. CINGSA CLU Storage 2 FMC Wellhead- 13 5/8" 5000k Multibowl Re-completion Schematic FMC Tree-7"5000#complete with SSV 7/10/2012 I,. !....), ...., • -- .-J-1 20" 133/I X56 driven to 117.5'TVD/I 17.5'MD ' 7" Halliburton Wireline Retrievable SSSV ki 179'TVD/179'MD r 13 3/8" 68#155 BTC Surface Casing g 2.414'TVD/2719'MD 16" hole/Cemented to Surface ..", e, [ Davis Lynch DV Collar(d; 3,483' 7"26#L80 Vain Top Tubing 'N' 7"x 9 5/8" Baker ZXP Liner Top Packer with 10'seal bore(a)4,928'TVD/7,604' MD itRN Casing Nipple,5.88" ID,7.60" OD 7"26# L-80 Vam Top HC -r 9 5/8"404 L80 BTC Intermediate Casing Vii;4,955'TVD 1 7,746'MD - 12 1/4"hole/Cemented to Surface �jt� New Perforations 7/10/2012 �+,� MD Perforation TVD Perforation 14 From To Footage From To Footage 8.225 8,155 70 5,046 5,033 13 1,„. I.- 8,040 7,850 190 5,012 4,976 36 7,790 7,760 30 4,963 4,958 4,951 4,945 4 7,720 7,690 30 6 1 Total Footage 320 Total Footage 59 _ i - Original Perfs 610 Perforation ND Par/citation From To Footage From To Footage 7890 7800 110 4944.77 4965.9 21.13 7850 8040 190 4975.88 5012.12 3624 ' • tls 4140 8230 90 5030.42 5046,58 16,16 II 8330 8490 160 5064.35 5093.65 29.3 •• Total Footage 550.00 Total Footage 102.83 PBTD • 1 7" 26# L80 Vann Top Production Liner from 4.928'TVD/7,604'MD TOP 8495'MD/5.095'TVD to 5.110'TVD/8,575'MD/Cemented 5,110'TVD/8.577'MDTD 8 1/2"hole SUAUE OEF ALASEA SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 M. Colleen Starring Vice President Cook Inlet Natural Gas Storage Alaska, LLC Ail P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Gas Storage Pool, CLU Storage 2 Sundry Number: 312-239 Dear Ms. Starring: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, aej P-3e4,c&_ Cathy P. Foerster Chair, Commissioner DATED thisSday of July, 2012. Encl. STATE OF ALASKA 07j 1245// zl ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 MC 25.280 1.Type of Request: Abandon❑ Plug for Redrill ❑ Perforate New Pool 0 Repair Well 0 Change Approved Program ❑ Suspend❑ Plug Perforations❑ Perforate 2. Pull Tubing❑ Time Extension ❑ Operations Shutdown❑ Re-enter Susp.Well ❑ Stimulate❑ Alter Casing❑ Other: ❑ 2.Operator Name: 4.Current Well Gass: 5.Permit to Drill Number: Cook Inlet Natural Gas Storage Alaska,LLC Development ❑ Exploratory ❑ 211135 • 3.Address: Stratigraphic ❑ Service Q • 6.API Number: P.O.Box 190989,Anchorage,AK 99519 50-133-20599-0000 - 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 CLU Storage 2 9.Property Designation(Lease Number): 10.Field/Pool(s): (x-a 5-61,--y-4. ADL 391627 • Cannery Loop/Sterling CAPooI , 3 "?--;•'7 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 8693' 5107' 8608' 5089' none none Casing Length Size MD TVD Burst Collapse Structural Conductor 117.5' 20" 117.5' 117.5' Surface 2719' 13 3/8" 2719' 2414' 3450 1950 Intermediate 7746' 9 5/8" 7746' 4955' 5750 3090 Production Liner 971' 7" 8575' 5110' 7240 5410 Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: RJ�rr�p j4p(fi'E D see attached see attached 7",26# L80 ■■VV''�!6 Packers and SSSV Type: BHI 9 5/5"HR ZXPN Liner Top Packer Packers and SSSV MD(ft)and ND(ft): JUN 2i Halliburton 7"WL FXE SSSV Pkr-7604'/4928' SSSV-179'/179' 2012 O,2 , 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: AQP.PQ Detailed Operations Program ❑� BOP Sketch ❑ Exploratory ❑ Development ❑ OServii 14.Estimated Date for 15.Well Status after proposed work: 7/9/2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: 7-S--"/z- WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: kii C ,,,,„11- GSTOR ❑ ' SPLUG ❑ 17.I hereby certify that the foregoing is tru4 and correct to the best of my knowledge. Contact —try\ icvmkosy k --7-7,4- Printed Name+,/ colo S' M -10 Title V\ce..„,. c50- /1� Sign re Phone Date 1 711-�fr°pQy *5N-31 7 7LC' (7a l (7 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 13 p , A3q Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance p Other: Subsequent Form Required: /a _L.1/0/ APPROVED BY Approved by: af:t7COMMISSIONER THE COMMISSION Date: 7 -..c-- lZ Form 10-403 Revised 1/Qt1ND/D1Yt�7 JUL 0 6 /l 7."0R I G I NA L Submit in Duplicate At q Cook Inlet Natural:Gas 3000 Spenard Road S"11D R PBox 1e, AK �. `. ���,� Anchorage, AK 99519-0989 June 29,2912 RECEIVED JUN 2 9 2012 Alaska Oil and Gas Conservation Commission AQGCC 333 West 7th Avenue, Suite 100 Anchorage,AK 99501 Re: CLU Storage 2 Application for Sundry Approvals Cook Inlet Natural Gas Storage Alaska, LLC(CINGSA) is requesting Sundry Approval to re- perforate CLU Storage 2. Limited injections into the well have confirmed evidence of near- wellbore damage to the existing perforations,thus the need to re-perforate. Only a portion of the previously perforated intervals will be re-perforated; no new sections of the reservoir will be perforated. CINGSA proposes to complete the re-perforating work via an electric line unit,tractor tool, and lubricator on or about July 9,2012. The operations as described in the attached outline well procedure will take place in two phases. A tractor tool,perforating gun and a GR/CCL correlation log will be run to TD to ensure proper depths. Perforating will take place in a balanced state and through a lubricator. The current BHP is approximately 700-750 psi. The second phase will involve flowing the well back through a separator and flare system to clean up the perforations. The well flow is not expected to last more than 1 hour after all perforation work is completed. The return gas will be measured via ultrasonic meter for relative volumes. If you have any questions or require additional information,please contact Tom Arminski at 907 334-7743 or email to tom.arminski@enstarnaturalgas.com. Sincerely, ft' a/c/LcotOdi M. Colleen Starring Vice President Enclosure as stated June 29,2012 Page 2 CLU Storage 2 Outline Perforating and Well Clean Procedures GENERAL SAFETY GUIDELINES A pre job safety meeting will be held with all affected personnel before every phase and for any change of program. Topics should include the following points: • Well site safety and placement of warning signs • H2S risks,spill prevention,and well control issues • Personnel assignments • Communications with crane operator • Contingencies CINGSA will establish a restricted area for arming the guns and Post Danger Explosives signs. All non-essential personnel must remain clear of the restricted area until after the gun assembly has been armed and run in the well to a depth of 200' or greater. It should be stressed that while picking up and running the perforating guns, only essential personnel should be in the vicinity of the well. Normally"essential personnel" will consist of the perforating crew, crane operator, and well site supervisor. All other personnel will stay a minimum of 200 feet from the well until the perforating string is at least 200' below ground level. Similarly,while retrieving fired guns, non-essential personnel must remain a minimum of 200 feet from the well until it has been confirmed that all shots have been fired and the spent guns laid down. Radio silence is not required with the firing systems described in this recommended practice. Flow-back from the well will not commence until all perforating operations have been completed and fired guns laid down. RIG UP AND PRESSURE TEST 1. Confirm SSSV protection sleeve is in place. 2. Mobilize electric line,tractor tool, lubricator,and perforating guns to CINGSA Drill Pad. 3. Install fusible cap on SSV. June 29,2012 Page 3 PERFORATING RUN 4. Install Wireline Valves (WLV)on Well Head with crane. 5. Hang upper Sheave on crane. Install E-line in upper sheave. Run E-line through lubricator. 6. Pressure test lubricator. 7. Op check tractor 8. Make depth correlations for re-perforating. 9. Review Well-site procedures for explosive services. SECURE detonators will be used. 10. Arm guns(Follow the safety placard for SECURE detonators) 11. Lift lubricator with crane. Lift tractor, GR/CCL,and gun into lubricator with the E-line. Position the lubricator and gun over well-head with crane and install lubricator on BOP's. 12. Test the Quick Test Sub 13. Open well-head and RIH. At 200 ft,switch from Safe to Operating mode. 14. Tag Float Collar at 8495'MD/5095'TVD. Note: Depth of packer/tubing tail/well restrictions/well deviation. 15. Correlate CCL/GUN to Reference Log(previous GR/CCL log). Go deeper than the perforated interval and pull gun up to the perforating interval. 16. Check Grease Injector for adequate pressure to maintain seal. Fire gun. 17. Check for Well Pressure loss/gain. POOH using caution at locations with restrictions. 18. At 200'STOP, check all that all safety switches are in the OFF position before proceeding to the surface with the tool-string. 19. Note: Always assume the gun(s) is live. 20. Pull gun into well-head/WLV/Lubricator. Close master gate and swab valves. Blow down lubricator. Bleed off any pressure in the lubricator. Verify the lubricator is not fluid packed. Break the lubricator off of the WLV's. Lay down gun. Confirm all shots have fired. Lay down the lubricator. Remove the WLV's. Install the tree cap. Rig down E-line. 21. The following intervals will be re-perforated: 8,490'to 8,460' MD (30', 1 runs with 30'guns) 8,440'to 8,410' MD(30', 1 run with 30'guns) 8,400'to 8,370' MD(30', 1 run with 30'guns) 8,195 to 8,165' MD (30', 1 run with 30'guns) 8,000'to 7,850' MD(150',5 runs with 30'guns) 7,790'to 7,760' MD(30', 1 run with 30'guns) June 29, 2012 Page 4 7,720'to 7,690' MD(30', 1 run with 30'guns) 22. Repeat steps 10-20 for subsequent perf intervals. Perforations 2 7/8" PowerJet 2906 HMX 4 SPF MD Perforation TVD Perforation From To Footage From To Footage 8,490 8,460 30 5,094 5,088 6 8,440 8,410 30 5,084 5,079 5 8,400 8,370 30 5,077 5,073 4 8,195 8,165 30 5,040 5,035 5 8,000 7,850 150 5,005 4,976 29 7,790 7,760 30 4,963 4,958 4 7,720 7,690 30 4,951 4,945 6 Total Footage 330 Total Footage 60 WELL FLOW/CLEAN UP 23. Flow well clean for one hour through gathering system,well pad separator, and vent silencer. Record pressures and rates. 24. Release e-line unit and return well to injection operations. r June 29,2012 Page 5 CINGSA CLU Storage 2 FMC Wellhead- 13 5/8"5000#Multibowl proposed Schematic FMC Tree-7" 5000#complete with SSV Re-Perf-July 2012 iv ,. 20" I33#X56 driven to 117.5'TVD/I 17.5'MD r ►""1 0; i 4? * ," 1 7"Halliburton Wireline Retrievable SSSV @ 179'TVD/179'MD 1 ;fifs ir yy ` kr. kolA "Ai 13 3/8"68#J55 BTC Surface Casing @ 2,414'TVD/2719'MD II. 114 16"hole/Cemented to Surface f. A Davis Lynch DV Collar(d 3,483' , ' ' *17 'r 7"26#L80 Vain Top Tubing 1 al i. c,' 7"x 9 5/8"Baker ZXP Liner Top Packer With 10'seal bore @ 4,928'TVD/7,604'MD P1 RN Casing Nipple,5.88" ID,7.60"OD p 7"26#L-80 Vam Top HC 71 2 9 5/8"40#L80 BTC Intermediate Casing .k.4 d.,- @ 4,955'TVD/7,746'MD - Pl.-11 i` 12 1/4"hole/Cemented to Surface 4k New Penis-2 7/8" PowerJet 4 spf 1 MD Perforation TVD Perforation From To Footage From To Footage 8.490 8.460 30 5.094 5,088 6 8.440 8.410 30 5.084 5,079 5 61 W 8.4110 8,370 30 5.077 5.073 4 ,}ri 8,195 8,165 30 5,040 5,035 5 .0 8,000 7,850 150 5,005 4,976 29 +yy". 7,790 7.760 30 4,963 4,958 4 7,720 7,690 30 4.951 4,945 6 Total Footage 130 Total Footage 60 Mt*' ,'"° Original Perfs 1til ND Perforation TVD Perforation IA From To Footage From To Footage `' r 7690 7500 110 4944.77 4965.9 21.13 7850 8040 190 4975,88 5012,12 3024 ... 8140 8230 90 5030.42 5046.58 1616 4, 8330 8490 103 5064.35 5093.65 29.3 SI I Total Footage 550.00 Total Footage 102.53 PBTD 7"26#L80 Vam Top Production Liner from 4,928'TVD/7,604'MD TOP 8495'MD/5.095'TVD to 5,110'TVD/8,575'MD/Cemented 5,110'TVD/8,577'MDTD 8 1/2"hole June 29, 2012 Page 6 CINGSA CLU Storage 2 FMC Wellhead- 13 5/8"5000#Multibowl 1 FMC Tree-7"5000#complete with SSV Completion Schematic 2/26/2012 1 . r«'1 20" 1330 X56 driven to 117.5'TVD/I 17.5'MD , 7" Halliburton Wireline Retrievable SSSV @ 179'TVD/179'MD .' ' 13 318"68#J55 BTC Surface Casing @ 2,414'TVD/2719'MD y . 16"hole/Cemented to Surface a , ;: F i' � . Davis Lynch DV Collar(u 3,483' : ,.....„..."......./.././ _k 7"26#L80 Vam Top Tubing P7"x 9 5/8"Baker ZXP Liner Top Packcr _i with 10'seal bore @ 4,928'TVD/7,604'MD RN Casing Nipple.5.88" ID,7.60"OD 7"26#L-80 Vam Top HC r 9 5/8"40#L80 BTC Intermediate Casing tTli @ 4,955'TVD/7,746'MD - F. 12 1/4"hole/Cemented to Surface " MD Perforation TVD Perforation 1 From To Footage From To Footage P 7690 7800 110 4944.77 4965.9 21.13 7850 8040 190 4975.88 5012.12 3624 ;.' , • 8140 8230 90 5030.42 5046.58 16.16 8330 8490 160 5064.35 5093.65 29.3 • . Total Footage 550.00 Total Footage 102.83 PBTD 1 7"26#L80 Vam Top Production Lincr from 4,928'TVD/7,604'MD TOP E495MD i 5.095' 1 VD to 5,110'TVD/8,575'MD/Cemented 5,110'TVD/8,577'MDTD 8 1/2"hole Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday, July 05, 2012 12:12 PM To: 'Richard Gentges' Cc: John Nicholson (john419halibut@gmail.com) Subject: RE: Sundry Notices for CLU S-2 and CLU S-5 ( PTD 211-135 &211-158) Rick, You have verbal approval to re-perforate CLU S-2 and CLU S-5 as outlined in your sundry applications. We should have them signed in a day or so. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Richard Gentges [mailto:Richard.Gentges@cingsa.com] Sent: Thursday, July 05, 2012 8:43 AM To: Schwartz, Guy L (DOA); Regg, James B (DOA) Cc: John Nicholson (john419halibut@gmail.com) Subject: Sundry Notices for CLU S-2 and CLU S-5 Jim and Guy, Any possibility that CINGSA can get a verbal approval on re-perforating these two wells? We finished up the re-perforating work on CLU S-3 and S-4 a little ahead of plan and I've got the service companies on stand-by? I can be reached on my cell phone if you have any questions (907-310-7322). Thanks Rick Gentges 7/5/2012 L-,,)\,--",'7,0-nUE SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 M. Colleen Starring Vice President ` 35- Cook Inlet Natural Gas Storage Alaska, LLC P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Gas Storage Pool, CLU Storage 2 Sundry Number: 312-191 Dear Ms. Starring: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sin ere ,1019 le . Nerma• Co , ..• sioner DATED this day of June, 2012. Encl. RECEIVED STATE OF ALASKA MAY 2 4 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 MC 25.280 1.Type of Request: Abandon❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well❑ Change Approved Program ❑ Suspend❑ Plug Perforations❑ Perforate❑ Pull Tubing❑ Time Extension ❑ Operations Shutdown❑ Re-enter Susp.Well ❑ Stimulate❑ Alter Casing❑ Other: C r-PeD Fl 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Cook Inlet Natural Gas Storage Alaska,LLC Development ❑ Exploratory ❑ 211135 - 3.Address: Stratigraphic ❑ Service 0 , 6.API Number: P.O.Box 190989,Anchorage,AK 99519 50-133-20599-0000 • 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 ❑ CLU Storage 2 ' 9.Property Designation(Lease Number): 10.Field/Pool(s): 474-5 S e.'")c �-�,7 ADL 391627 ' Cannery Loop/Sterling C�tsbl d A7>s`- -ez- 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): / Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): „Wen--937/ ,,54'07 -51 to' 8608' 5089' none none Casing �so•aLength 7�3a-ILSize MD ND Burst Collapse Structural Conductor 117.5' 20" 117.5' 117.5' Surface 2719' 13 3/8" 2719' 2414' 3450 1950 Intermediate 7746' 9 5/8" 7746' 4955' 5750 3090 Production Liner 971' 7" 8575' 5110' 7240 5410 Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): see attached see attached 7",26# L80 7604' Packers and SSSV Type: BHI 9 5/5"HR ZXPN Liner Top Packer Packers and SSSV MD(ft)and TVD(ft): Halliburton 7"WL FXE SSSV Pkr-760474928' SSSV-179'/179' 12.Attachments: Description Summary of Proposal E 13.Well Class after proposed work: Detailed Operations Program E BOP Sketch E Exploratory ❑ Development ❑ Service ❑✓ 14.Estimated Date for 15.Well Status after proposed work: 6/11/2012 Commencing Operations: Oil ❑ Gas Q WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR L ` SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact i c rie, GCS 310--4 322. Printed Name M , oi!e � vi �/l'ii,Title )1.c - Prr5 � r�L�f,- �✓�^-I- /71(-C 1-2.- Signature ZSignature f . n � / �� A Phone Date �I �J COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 31"2..._-- - l Plug Integrity ❑ BOP Test V Mechanical Integrity Test ❑ Location Clearance ❑ Other: 4-5`0 0 P 5 i j 8 0 P t-r3,4 1 Nt, tify l-el iptCf 'i3' l nG1/e ettc'S. Subsequent Form Required: /O 4 0 ' I APPROVED BY Approved by: V' C•I MISSIONER THE COMMISSION Date: 6'5-.( 4 41 o - JUN 0 2 �p p/ o z 0RIGINAL _w--(061,-1.(3... Submi in Duplicate tC2417 f�Orm 10 403 Revised 1/201 !p`t ' Du / � )21/4•2 Cook Inlet Natural Gas Storage Alaska, LLC Cook Inlet Natural:Gus 3000 Spenard Road PO Box 190989 AnchSTORAQIMain:907- 4-K 99519-0989 ,>f'+• Main:907-334-7980 v,� Fax:907-334-7671 S Q , www.cingsa.com May 24, 2012 Alaska Oil and Gas Conservation Commission RECEIVED 333 West 7th Avenue, Suite 100 Anchorage,AK 99501 MAY 2 4 2012 Re: CLU S-2 AOGCC Application for Sundry Approvals Cook Inlet Natural Gas Storage Alaska,LLC(CINGSA)is requesting Sundry Approval to clean out solids/fill material from CLU S-2. CINGSA proposes to rig up a 1 3/4-inch coil tubing unit and well test equipment on location in mid-June. The proposed operations are described in the attached outline of well procedures but will generally consist of running coil in hole to bottom and then washing down with foam and nitrogen.The well will be flowed back via a choke manifold to a separator. Fluids will be recovered in a frac tank and gas will be either flared or vented through a flare stack. The well flow is not expected to last more than 1 hour after the foam solution is off the perforations. If you have any questions or require additional information,please contact Tom Arminski at 907 334-7743 or email to tom.arminski@enstarnaturalgas.com. Sincerely, M. Colleen Starring Vice President Enclosure as stated CLU Storage 2 Outline Well Clean Procedures GENERAL SAFETY GUIDELINES A pre job safety meeting will be held with all affected personnel before every phase and for any change of program. Topics should include the following points: • H2S risks, spill prevention,and well control issues • Personnel assignments • Contingencies It should be stressed that while testing the BOP,only essential personnel should be around/near the tree. Normally"essential personnel" will consist of the coil crew and a roustabout for crane signals. All other personnel will stay clear of the tree area. RIG UP AND PRESSURE TEST 1. Notify AOGCC of upcoming rig up and BOP test 48 hours prior. Confirm SSSV protection sleeve is in place. 2. Mobilize and rig up 1 3/4"coil tubing and well testing equipment to CINGSA Drill Pad. 3. Position Blind/Shear Rams in upper Combi BOP body and 1%"pipe rams in lower body. Pre-test BOP, all lines and valves to 250 psi/4500 psi. Install fusible cap on SSV. 4. Call for AOGCC Inspector. Pressure test BOP,all lines and valves to 250 psi/4500 psi. Ensure form 10-424 is sent in to AOGCC within 24 hours of Pressure Test. WELL CLEAN UP 5. Pick up circulating wash nozzle and injector head with crane. Lower injector head and make up lubricator connection. 6. Run in hole to 8,495'MD/5095'TVD or fill TD. When wash nozzle stacks weight begin washing down with 3% KCI/foam system until reaching TD. Displace wash fluid and any solids/fill with nitrogen and take returns through choke manifold to separator. 7. Monitor returns for methane. Strap tanks for return volume. Continue pumping N2 until well is clean of foam and flowing gas on its own. Shut off N2. 8. Flow well clean for up to one hour or until fluid is off perforations while POH with coil. Record pressures and rates. 9. Once coil is clear of tree, close upper and lower master and. Bleed pressure off through choke manifold until no flow. Close swab valve. 10. Nipple down coil. Nipple down test equipment. Send fluids to Emerald Anchorage for disposal. 11. Release coil unit. k ' • . CINGSA PROJECT ...fr— COILED TUBING STACK UP -..,_ Kenai, AK -.----7--,n---i • Mr ., 1..7: L,Inject°,Head C-la/ eg Frill, . 4.06"Convennonal Shipper 1O1S ft of 7.00-lubr Icahn • r—, jrLficE L.711 . . . . 6i i'---1/1 2.375-CI String PM 1N/outlet •%• IL .er-1 :WV9,1. a • • no.„--, 'illk 11111110 AZ 7 .1.1 ._.....„..„. , Well Clean Rig Up ,.., . . as rr F. 1' ii 1 .-...—........— _SP/i0 TRIP_ . . i , i .1 *--- j=10 ..,....... ,...';1...- _...!. .rvfm.., i t — 11*Ilk 1[—PO— - ••• um,ian .X ead X1: --a '--—— - ,••waffle j. ma.... - 1,2 S.MS ISM MIS YR 1 SS If 1 - __,...... f._,.... •••—,--011——.. 4—maros.• 0 m"'" _....—....... '1 area••• ' NORM IWO UP PLANE 110.111111.POINNOM IV .. ... •rawroanset Au.reran mama, Ns CS ISMAYIS m.... -.. SW... .--• W.". 11.1W"&".. RACK 11111P=1. ep. rlt AWAY PROM PLUM en...Wof m....M1 atherford We ., ISTOWIll WIN SIMJ.111STSIS SESSIONS ISLAINISPITMS:VCINGSA 4._SSW ....1131111 ii mw MD le.pour RION St 11.1.•••••• IMP.1•••aUr alita PM J•olMr —._,....7._ .....,......... ......„..... witzam...tssize, . „. L ‘_.. P11111111111010 1.011011•1 AMP Sr,Mr... LIP....."*".".011Via"...."71.1.1.=TJAIMPUM ,to.PROCIEr...INIO INSTRUMENIWS11.1 CINGSWAI =Irrirra=01717•••"":1 " ." N.1-•S IINUIPMENT. CI GSA CLU Storage 2 FMC Wellhead- 13 5/8"5000#Multibowl Completion Schematic FMC Tree-7" 5000#complete with SSV 2/26/2012 t - w 20" 133#X56 driven to 117.5'TVD/I 17.5'MD 7" Halliburton Wireline Retrievable SSSV @ 179'TVD/179'MD r -' ?J 13 3/8"68#J55 BTC Surface Casing qr,2,414'TVD/2719'MD ,.. r 16"hole/Cemented to Surface ;.'1 Davis Lynch DV Collar(w 3,483' 4 f 7"26#L80 Vam Top Tubing Iv ; 7"x 9 5/8"Baker ZXP Liner Top Packer with 10'seal bore 04 4,928'TVD/7,604' MD ` RN Casing Nipple,5.88" ID,7.60" OD 7"26#L-80 Vam Top I IC 9 5/8"40#L80 BTC Intermediate Casing '° 044,955'TVD/7,746'MD - »• 12 1/4"hole/Cemented to Surface ' MD Perforation TVD Perforation From To Footage From To Footage 7690 7800 110 4944.77 4965.9 21.13 ` a 7850 8040 190 4975.88 5012.12 36.24 el 8140 8230 90 5030.42 5046.58 16,16 8330 8490 160 5064.35 5093.65 29.3 • • la + • Total Footage 550.00 Total Footage 102.83 PBTD 1 7"26#L80 Vam Top Production Liner from 4,928'TVD/7,604'MD TOP 8495'MD+5.095'T VD to 5,110'TVD/8,575'MD/Cemented 5,110'TVD/8,577'MDTD 8 1/2"hole y i Ferguson, Victoria L (DOA) From: Richard Gentges [Richard.Gentges@cingsa.com] Sent: Monday, June 04, 2012 12:55 PM To: Ferguson, Victoria L(DOA) Cc: Schwartz, Guy L (DOA); Richard Gentges Subject: RE: CLU Storage 2, 3, 4 &5 Sundry Applications Victoria, Maximum allowable surface pressure will be 3000 psi. This would be on the coil tubing reel rotating joint itself. Let me know if you have any other questions. Rick Gentges From: Ferguson, Victoria L (DOA) jmailto:victoria.fergusonCa alaska.govl Sent: Monday, June 04, 2012 12:18 PM To: Richard Gentges Cc: Schwartz, Guy L(DOA) Subject: CLU Storage 2, 3, 4 &5 Sundry Applications Rick, Could you please provide a maximum allowable surface pressure (MASP)for the four wells CLU Storage 2,3,4&5 in reference to your Sundry Applications for stimulation and fill clean out. Thank you in advance, Victoria Victoria Ferguson Senior Petroleum Engineer State of Alaska Oil&Gas Conservation Commission 333 W.7th Ave,Ste 100 Anchorage,AK 99501 Work: (907)793-1247 victoria.ferquson(&alaska.gov 1 ci, , s E:7 , 1, , , , r i t 1 fil7\ -',0 + ii 11. { 9 , / SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 II CONSERVATION COM SSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 May 25, 2012 Mr. Richard Gentges Cook Inlet Natural Gas Storage Alaska, LLC P.O. Box 190989 Anchorage, AK 99519-0989 Re: Defeated Safety Valve System Cannery Loop Unit Gas Storage Project Cannery Loop Unit S-02 (PTD 2111350) Dear Mr. Gentges: The Alaska Oil and Gas Conservation Commission(AOGCC) has reviewed the explanation from Cook Inlet Natural Gas Storage Alaska(CINGSA) regarding the defeated safety valve system on Cannery Loop Unit S-02. That explanation was provided to the AOGCC letter dated May 21, 2012. The corrective actions that have been implemented by CINGSA on gas storage project wells address the regulatory concerns identified in AOGCC's letter dated May 2, 2012. One item not mentioned in the corrective actions implemented is a verification of CINGSA's tagging procedures when a required component of the well safety valve system is inoperable, removed or blocked. CINGSA is encouraged to review the adequacy of the tagging procedures. The AOGCC does not intend to pursue any further enforcement action regarding the Cannery Loop Unit S-02 defeated safety valve system. Sincerely, ia: 4-1t.df---„_ Cathy P. oerster Chair cc: AOGCC Inspectors (via email) r \ , ALAs r + i; SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 May 2, 2012 CERTIFIED MAIL— RETURN RECEIPT REQUESTED 7009 2250 0004 3911 2821 Mr. Richard Gentges Cook Inlet Natural Gas Storage Alaska, LLC P.O. Box 190989 Anchorage, AK 99519-0989 Re: Defeated Safety Valve System Cannery Loop Unit Gas Storage Project Cannery Loop Unit S-02 (PTD 2111350) Dear Mr. Gentges: On April 20, 2012 an Alaska Oil and Gas Conservation Commission (AOGCC) Inspector accompanied by a Cook Inlet Natural Gas Storage Alaska (CINGSA) representative performed safety valve system inspections at the Cannery Loop Unit (CLU) Gas Storage wells pad. Three of the five gas storage wells were tested; the remaining wells were shut in with startup planned at a later date. The surface safety valve on CLU S-02 was found defeated at the time of performance testing. A copy of the inspection report is attached. The facts reported by the AOGCC Inspector indicate a failure to maintain an operable safety valve system, which would be a violation of State regulations. Within 14 days of receipt of this letter, you are requested to provide the AOGCC with an explanation of how this event happened and what has or will be done in the future to prevent its recurrence in the CINGSA-operated gas storage field. Inspection revealed that the control line for the surface safety valve was blocked at the actuator, preventing the valve from closing as required. You are reminded that 20 AAC 25.265 requires a completed well to be equipped with a functional safety valve system. "If a required component of a well's safety valve system is inoperable, removed, or blocked, the well must be tagged. Tagging is not required during well work activities and continuously manned operational activities that affect a safety valve system. " [20 AAC 25.265(m)] The AOGCC reserves the right to pursue enforcement action in connection with the inoperable surface safety valve on CLU S-02 as provided by 20 AAC 25.535. Defeated Safety Valve System May 2,2012 Page 2 of 2 Sincerely, ,, Daniel T. Seamount, Jr. Commissioner Attachment cc: P. Brooks AOGCC Inspectors RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a),within 20 days after written notice of the entry of this order or decision,or such further time as the AOGCC grants for good cause shown,a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed,then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration,upon denial,this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction,in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration,this order or decision does not become final. Rather,the order or decision on reconsideration will be the FINAL order or decision of the AOGCC,and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails,OR 30 days if the AOGCC otherwise distributes,the order or decision on reconsideration. As provided in AS 31.05.080(6),"[tlhe questions reviewed on appeal are limited to the questions presented to the AOGCC by the application for reconsideration." In computing a period of time above,the date of the event or default after which the designated period begins to run is not included in the period;the last day of the period is included,unless it falls on a weekend or state holiday,in which event the period runs until 5:00 p.m.on the next day that does not fall on a weekend or state holiday. f 0 T. o » WI / / § .. § / ) $ � \ a u v 2 — $ Ea R k / 2 / O § 0 0 £ • a ¢ / 2 q Ira A z / T. % • ,..42 ƒ / / rn y. \ 0 r M at PI 0 ) CZ / I / _ N eucu - / on 0 CA - c,) a • a JD r ƒ § ƒ E £ 6 § S 1. / ) Eco c E I r. aa 0O. ° o _ a Cn g § E = o c � 0 CI • w _ < \- § j ) c _ >4 # w w - i•) (..) 00 (..,\ / X50 - ,_ \ 7 — \ g �. . - / a. Ct 2 0 / / ) — $ / CU 2 0 ea 7 ) @ rn / 1=d / ) I a \ « • / j \ # 2o CA 4...7 a § / § ) 0 .; k [ct)— a 2 / P. S $ S 2 § '; / u1 % § / 2 } -0 a N / ��LU• \ t } \ v.N •j 2. 2 \� § / / Z 2 p. ) ? 7 \ E \ VI 0 \ I z m 2 c a Q 3 / e Sz Prh Regg, James B (DOA) From: Richard Gentges [Richard.Gentges@cingsa.com] ' �'( Sent: Wednesday, April 25, 2012 10:17 AM " e( q yy Z To: Regg, James B (DOA); Matthew Federle Cc: Grimaldi, Louis R (DOA); John Lau; Ed Scarpace; Richard Gentges Subject: RE: CLU S-2 (PTD 2111350) Jim CINGSA will arrange immediately to impose a positive pressure of 200-300 psi on the inner annulus (7" x 9") and continue to monitor the tubing, inner, and outer annulus pressures as you have directed. CINGSA appreciates the opportunity to further evaluate the results of the MIT on the S-2 well. Thus far our flowing pressure and injection rates have been very low (approximately 700 psi and only 5-6 mmcf/d), and flowing temperatures have only been 40-45 degrees. Once compression comes on line pressure and injection rate will obviously increase significantly and we expect temperature will rise a minimum of 20-30 degrees. We are in the final stages of preparing the compressors for injection purposes and expect they will be running by late this week/early next week in a steady-state condition. Once we have reached a steady-state operating condition we will open wells S-1 and S-3 for injection. Assuming we maintain steady injections, we should be ready to perform an MIT on both wells within a week of opening them. ✓ �t,Lt,4 ve fL1T/Sv's -leek Cid1F;uc') If you have any questions, please give mea call. „ L'. 5_I / 2 4 WL'ec4- Aka__ Ze;tz_ Thanks very much. Rick Gentges Project Manager From: Regg, James B (DOA) [mailto:jim.regg@aalaska.gov] Sent: Wednesday, April 25, 2012 9:17 AM To: Richard Gentges; Matthew Federle Cc: Grimaldi, Louis R (DOA) Subject: CLU S-2 (PTD 2111350) I have reviewed the MIT report for S-2 as submitted by AOGCC Inspector Lou Grimaldi (attached),which appears to indicate a slow leak(lack of clear tubing-casing annulus pressure stabilization during the test). Inspector considered the test result inconclusive ("I"). Before deciding the next steps, please do the following: 1) Impose and maintain a positive pressure of a 200-300 psi on the tubing-casing (inner) annulus; be prepared to report monitored pressures [tubing, inner annulus and casing-casing (outer) annulus] in table and graphically if requested 2) Provide the timeline for bringing S-1 and S-3 on line. Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 1 1 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: DATE:Wednesday,April 25,2012 Jim Regg 'jam") P.I.Supervisor Ke': 1 1751(2 SUBJECT:Mechanical Integrity Tests I COOK INLET NATURAL GAS STORAGE A S-2 FROM: Lou Grimaldi CANNERY LOOP UNIT S-2 Petroleum Inspector Src: Inspector Reviewed By: P.I.Supry ff —' NON-CONFIDENTIAL Comm Well Name CANNERY LOOP UNIT S-2 API Well Number 50-133-20599-00-00 Inspector Name: Lou Grimaldi Permit Number: 211-135-0 Inspection Date: 4/21/2012 Insp Num: mitLG120422082029 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well! S-2 'Type Inj 1 G ITVD 4928 j IA 0 1740 1690 1650 1620 1590 - PTD 2111350 /Type Test SPT,Test psi, 1500 I OA 1 2 3 i 3 3 2 2 Interval fINITAL— 13/F' j 1 1_ i _-_-_ Tubing1 686 - 686 685 685 684---1 683 - Notes: Final readings, 1565/2/683.<.5 bbl lost during test.Test result inconclusive Per J.Regg,refer to attached email and pressure plot for more details. Wednesday,April 25,2012 Page 1 of 1 • T C L� S--- Regg, James B (DOA) P z 1(/35o From: Grimaldi, Louis R (DOA) Sent: Monday, April 23, 2012 1:25 PM e-; JII 2 4 U z- To: Regg, James B (DOA) (1 Subject: S-2 results The 5-2 test was borderline and less than 10% in 30 mins. The subsequent periods losses were >50% which would have failed in PBU. We don't have that rule though. The other 2 wells were rock solid and made this one look bad. I think keeping a little pressure on the IA and monitoring TIO should suffice for awhile. If the IA starts to climb ,/ when they ramp up compression it may indicate probs. I explained as best I could proper annulus maintenance but I think it was lost on them. Its a Michigan thing. P7 Z•lo3cV Regg, James B (DOA) From: Grimaldi, Louis R (DOA) � `� Al i!� Sent: Sunday, April 22, 2012 9:19 AM To: Regg, James B (DOA) Subject: CLU GSTOR S-2 Data Attachments: CLU GSTOR S-2 04-21-12 MIT Data plot LG.xlsx Jim, I witnessed what appeared to me to be a slow leaker MIT on the S-2 well but would appreciate you looking at the data. I have attached a spreadsheet with graph of what I saw. I go to the slope on Monday but we can discuss at your convenience. Thanx, Lou Grimaldi Petroleum Inspector N.S. Pager 659-3607 Home 776-5402 Cell 252-3409 1 In , M Q Q I I I — -)- 1 if . i f 1 I i I I ! f 1 ! 1 . 1 ! I ; i { im N ► :E— V) I ! I I I m E t ! I j t ; I I j Ln i ! j . I j i i e i 1 i I ! t C I I I ! I 4t " . . ._ ! i I ! . . a,a 0 0 0 0 0 0 0 0 0 0 0 o 000 t o 0 00 00 0 NN N c1 I--I r-i r-I r-I (isd) ainssaid 1 1 I 4 CIT AELAS ,_. SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 April 4, 2012 M. Colleen Starring Cook Inlet Natural Gas Storage Alaska, LLC Vice President P.O. Box 190989 Anchorage, AK 99519-0989 Re: Cannery Loop Gas Storage Project Start-up Storage Injection Order 9 CLU S-01 (PTD 2111490) CLU S-02 (PTD 2111350) CLU S-03 (PTD 2110880) CLU S-04 (PTD 2111220) CLU S-05 (PTD 2111580) Dear Ms. Starring: The Alaska Oil and Gas Conservation Commission (AOGCC), by letter dated March 22, 2012, reminded Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) that injection associated with the Cannery Loop Gas Storage Project shall not commence until all outstanding obligations identified in that letter were resolved, namely review of pre-injection mechanical integrity tests of the five storage injection wells; review of the design, operation and testing of the well safety valve systems; remediation of existing pool wells with penetrations through the gas storage reservoir; and confirmation of plans for the installation of gas monitoring equipment. This letter provides official notice that CINGSA has satisfied AOGCC's requirements and is therefore authorized to commence injection into the Cannery Loop gas storage wells. This notice follows verbal approval to commence injection provided by the AOGCC on March 31, 2012. All requested information has been provided by CINGSA and reviewed by AOGCC. Affected wells — including the five new gas storage wells and the existing Cannery Loop Unit wells that penetrate the reservoir — have been confirmed to have mechanical integrity which will prevent the migration of injected gas from the storage reservoir. Technical discussions and reviews of the safety valve system information were supplemented by a walkthrough inspection of the well pad facilities by an AOGCC Inspector on March 31, 2012. The Inspector also witnessed a successful function test of the well safety valve system. CINGSA has committed to install gas monitoring equipment in 2 buildings owned by Inlet Fish Producers, Inc. that are within 50 feet of abandoned Kenai Unit well 13-08. Agreement by both 4 M. Colleen Starring April 4,2012 Page 2 of 2 parties — CINGSA and Inlet Fish Producers, Inc. — with equipment installation occurring as outlined in the agreement will satisfy Rule 3 of Storage Injection Order 9. Additional, post-injection obligations for operating the gas storage injection project are outlined in Storage Injection Order 9 and AOGCC regulations at 20 AAC 25. AOGCC appreciates CINGSA's effort to date to provide require requested information in a timely manner, make available technical staff to answer questions and resolve concerns, and in notifying AOGCC for opportunities to witness tests that are key to the success of the storage injection project operations. Sincerely, P204.44, irr Cathy . Foerster Daniel T. Seamount, Jr. Chair, Commissioner Commissioner cc: R. Gentges, CINGSA • CCU_ 5—z_ Regg, James B (DOA) P%b 7.11i350 From: Brooks, Phoebe L (DOA) Sent: Friday, March 23, 2012 3:21 PM ;fie 3(Z,5/i7_, To: Richard Gentges Cc: Regg, James B (DOA) Subject: RE: CINGSA Initial MIT Results Attachments: MIT CLU S-3 09-21-11.xls; MIT CLU S-4 10-23-11.xls; MIT CLU S-5 01-16-12.xls; MIT CLU S-1 12-15-11.xls; MIT CLU S-2 11-19-11.xls Rick, Attached are revised reports as follows: • File naming convention was changed (ex. MIT CLU S-1 12-15-11) • "0" in OA data fields were removed and "0" was added to the tubing or casing fields • Verbiage pertaining to 10-23-11 testing was removed from the Notes (located near the bottom of the data portion of the form) Please let me know if you disagree. Thank you, Phoebe Phoebe Brooks Statistical Technician II Alaska Oil and Gas Conservation Commission Phone: 907-793-1242 Fax: 907-276-7542 From: Richard Gentges [mailto:Richard.Gentges@cingsa.com] Sent: Friday, March 23, 2012 10:25 AM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L(DOA) Cc: Richard Gentges; cperry@att.net; Matthew Federle Subject: CINGSA Initial MIT Results Jim Attached, per your instructions yesterday are the initial results of mechanical integrity tests that were performed on all five of CINGSA's storage wells while the drilling rig was still on each well. You had a number of questions in your email yesterday (copied below), which I have provided responses to. Thank you for the MIT reports; couple items: 1) Do wells have casing-casing annulus (OA)?Or was the pressure zero? The Outer Annulus (9 x 13) is cemented to surface on each of the five wells,thus pressure was not recorded. 2) Please verify Tubing pressure in CLU S-1; pressure fall off never stabilized. I've confirmed the correct pressures are listed for CLU S-1. 3) CLU S-3 IA pressure fell below the required 1500psi; I will accept this as a passing test; refer to Industry Guidance Bulletin 10-002, paragraph labeled "Test Pressure" regarding future tests 4) Was CLU S-4 tested 30 minutes?; report only shows 15 min data. I went back and checked the drilling records and CLU S-4 was tested for only 18 minutes; no indication noted as to why. 5) We need separate reports for each well since done on different dates; include the test date in the "Date" field. Done 6) PTD#should be formatted without dash and adding trailing zero (ex. 2111490 instead of 211-149). Done — 7) Interval should be I (initial) instead of 0 (other); I probably gave you bad advice on this previously. Done — Please give me a call if you have any questions on these submittals. I can be reached at 310-7322. Thanks very much. Rick Gentges 2 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanical Integrity Test Submit to: jim.reaaaialaska.aov doa.aoacc.prudhoe.bay( alaska.gov; phoebe.brooks(eialaska.00v OPERATOR: Cook Inlet Natural Gas Storage Alaska,LLC I\ee3(2 FIELD/UNIT/PAD: Cannery Loop Gas Storage-Sterling C 6 ' f DATE: 11/19/11 OPERATOR REP: Matt Federle AOGCC REP: Packer Depth Pretest Initial 15 Min. 30 Min. 45 Min. 60 Min. Well CLU S2 ' Type Inj. G TVD '4,928' Tubing 0 3,150 3,150 3,150 ' Interval l P.T.D. 2111350 - Type test P Test psi ' 3000 Casing 0 0 0 0 P/F P - Notes: Test performed on 11/19/11 while drilling rig was on OA location,immdiately after runnin tubing. Casing pressure(9 5/8" registered zero and the Outer Annulus 9 x 13)is cemented to surface. Well CLU S2 Type Inj. G TVD - 4928' Tubing 0 0 0 0 Interval l P.T.D. 2111350 (Type test P Test psi -1500 Casing 0 '1,640 1,640 '1,640 P/F P Notes:Test performed on 11/19/11 while drilling rig was on OA location,immdiately after runnin tubing. Tubing pressure(7")re istered zero and the Outer Annulus(9 x 13)is cemented to surface. Well Type Inj. TVD Tubing Interval P.T.D. Type test Test psi CasingP/F Notes: OA Well Type Inj. TVD Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA Well Type Inj. , TVD Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA TYPE INJ Codes TYPE TEST Codes INTERVAL Codes D=Drilling Waste M=Annulus Monitoring I=Initial Test G=Gas P=Standard Pressure Test 4=Four Year Cycle I=Industrial Wastewater R=Internal Radioactive Tracer Survey V=Required by Variance N=Not Injecting A=Temperature Anomaly Survey 0=Other(describe in notes) W=Water D=Differential Temperature Test Form 10-426(Revised 02/2012) MIT CLU S-2 11-19-11 STATE OF ALASKA ALA`.A OIL AND GAS CONSERVATION COMM1,,SION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la.Well Status: Oil❑ Gas ❑ SPLUG ❑ Other Q Abandoned ❑ Suspended❑ lb.Well Class: GSTOR 20AAC 25105 20AAC 25.110 Development ❑ Exploratory ❑ GINJ ❑ WINJ❑ WAG ❑ WDSPL❑ No.of Completions: _1 Service ❑✓ Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number: Cook Inlet Natural Gas Alaska,LLC Aband.:2/26/2012 211-135 / 3 Z -035 3.Address: 6.Date Spudded: 13.API Number: P.O.Box 190989,Anchorage,AK 99519 10/30/2011 50-133205990000 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 570'FNL 1763 FEL SEC.9 T5N R11W 11/13/2011 CLU Storage 2 Top of Productive Horizon: 7,541'MD/4914'TVD 8.KB(ft above MSL): 50.5' 15.Field/Pool(s): 2246'FNL 1184'FEL SEC.8 T5N R11 W GL(ft above MSL): 33' Cannery Loop/Sterling C pool Total Depth: 8,577'MD/5,110'TVD 9.Plug Back Depth(MD+TVD): 2413'FNL 2189 FEL SEC.8 T5N RI 1W 8495'/5,095' 4b.Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface: x- 281845.28 y- 2392982.6 Zone- 4 8,577/5,110' ADL 391627 TPI: x- 277112.091 y- 2391382.213 Zone- 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 276105.297 y- 2391237.391 Zone- 4 179'/179' ADL 230925 18.Directional Survey: Yes Q No ❑ 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) N/A 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: GRAM,CALM,RPC-SHM-SLM-CLM; BDCM,NPCKSM,DPEM-8 1/2"only N/A 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" 133 X56 23 117.5 23 117.5 Driven N/A 13 3/8" 68 J-55 22 2,719 22 2,414 16" 719sx lead/291 sx tail 9 5/8" 40 L-80 20.5 g 7,746 20.5 4,955 12 1/4" Stage 1 -548 lead,205 sx tail Stage 2 495 sx DV @3,483'M[ 7" 26 L-80 7,604 8,575 4,928 5,110 8 1/2" 183 sx 24.Open to production or injection? Yes Q No If Yes,list each 25. TUBING RECORD interval open(MD+TVD of Top&Bottom;Perforation Size and Number): SIZE DEPTH SET(MD) PACKER SET(MD/TVD) MD Perforation TVD Perforation 7" 7,604 7,604/4,928 From To Footage From To Footage 7690 7800 110' 4944.77 4965.9 21.13' 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. 7850 8040 190' 4975.88 5012.12 36.24' DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 8140 8230 90' 5030.42 5046.58 16.16' 8330 8490 160' 5064.35 5093.65 29.3' Total Footage 550' Total Footage 102.83' 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period 10. . Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate - 28. CORE DATA Conventional Core(s)Acquired? Yes ] No❑ Sidewall Cores A . • -. =: Mi No❑ If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),ani ology and presence of oil,gas or -ter (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photogra hs and labormtr 20 AAC 2 .071. LIAR 14 2012 .�Ia,;IF�C;i &Gas Cons.Commission RBDMS MAR0 15 1011 Form 10-407 Revised 12/2009 CONTINUED ON REVERSE it., 3-/‘./Z u it original only 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? I❑ Yes ❑l No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if Permafrost-Top needed,and submit detailed test information per 20 MC 25.071. Permafrost-Base Co I7501' B5a 4905' Sterling Cl 7541' 4914' Sterling C2 8262' 5052' Formation at total depth: Sterling C2 31. List of Attachments: Daily Drilling Reports,Perforating Reports,Pressure Plots,Well Schematic 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact:Tom Arminski 907 334-7743 Printed Name: M. Colleens Starring Title:Vice President Signature:'k,bL9> Phone:907 334-7743 Date: ' /,3 d%Z 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 lb: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other.Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and ND for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced,showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 MC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 MC 25.071. Form 10-407 Revised 12/2009 Cook Inlet Nafura -GasCook Inlet Natural Gas Storage Alaska,LLC STRA Anchorage,AK 99519-0989 -?'a •� << Main:907-334-7980 Fax:907-334-7671Q,E, ¢ www.cingsa.com March 13, 2012 RE-CE'NED MAR 1 it 2012 Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100i Cons.Commission jtir ` Anchorage, Alaska 99501 Anchs ofago Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) ail Well Completion Form 10-407 CLU Storage 2 Gas Storage Well Please find attached Well Completion form 10-407 for CINGSA's CLU Storage 2 Gas Storage Well and associated daily reports/well schematic. The well work has been completed and the well is available for storage operations. The following is a summary of operations conducted since the previous report. Date Operations 1/30/12 Rigged up Coil. Tested BOPs 1/31/12 Ran GR/CCL memory correlation log. Commenced perforating 2/1/12 Complete Perforating- 7690'to 7800' 7850'to 8040' 8140'to 8230' 8330'to 8490' Blew Down Well - Recovered 306 bbls brine. Open well -pressure dropped to 0 2/2/12 Set SSSV 2/7/12 Attempt to run Pressure/Temperature Memory Log-held up in SSSV 2/8/12 Remove SSSV- Run Pressure/Temperature Memory Log 2/21/12 Remove Tree - attempt to clear Control line blockage -no success 2/22/12 Ran Sampler to 7671'in two runs -recovered brine and perf debris 2/24/12 Rig up BHI Coil AOGCC March 13, 2012 Page 2 2/25/12 RIH attempt to reverse well clean -marginal success it, 3160- 2/26/12 (60 -2/26/12 Start N2 injection - 2500)<SCFM -1688 psi / 5000 SCFM 1640 psi - rig down coil 2/27/12 Set plug and prong in SSSV landing nipple 3/2/12 Pressure up on tubing to 3000 psi above plug. Open Control Line and bleed off hydraulic fluid. Blow dry. 3/3/12 Set SSSV - Released well to Production Thank you and if you have any questions, please do not hesitate to contact Tom Arminski at 907 334-7743 or tom.arminski@enstarnaturalgas.com. Sincerely, M. Colleen Starring Vice President Enclosure as stated CINGSA CLU Storage 2 FMC Wellhead- 13 5/8" 5000# Multibowl Completion Schematic FMC Tree- 7" 5000#complete with SSV p 2/26/2012 tti 20" 133#X56 driven to 117.5' TVD/117.5' MD 7" Halliburton Wireline Retrievable SSSV @ 179' TVD/179'MD 13 3/8" 68#J55 BTC Surface Casing @ 2,414' TVD/2719'MD 16" hole/Cemented to Surface Davis Lynch DV Collar @ 3,483' 7" 26# L80 Vam Top Tubing 7" x 9 5/8" Baker ZXP Liner Top Packer with 10' seal bore @ 4,928' TVD/7,604' MD RN Casing Nipple, 5.88" ID, 7.60" OD 7" 26# L-80 Vam Top HC 9@l254/18/94"" 40# BInmt @ 4,955' TVD/7,746' MDter - 125/8/ 14" holeL80/CementedTC to Surface e Casing MD Perforation ND Perforation i - From To Footage From To Footage 7690 7800 110 4944.77 4965.9 21.13 7850 8040 190 4975.88 5012.12 3624 8140 8230 90 5030.42 5046.58 16.16 8330 8490 160 5064.35 5093.65 29.3 Total Footage 550.00 Total Footage 102.83 PBTD 7" 26# L80 Vam Top Production Liner from 4,928' TVD/7,604'MD TOP 8495'MD/5,095'TVD to 5,110' TVD/8,575' MD/Cemented 5,110'TVD/8,577' MDTD 8 1/2" hole Schlumberger Tubing Coi eyed Perforating Client Well Rig Field Date Guns CINGSA CLUS 2 SLB 1 Kenai 1/8/2012 4.72"4spf 4505PJ Count of Entries==>34 Description Gun# Length Top Bottom Gun S/N MHA,Disconnect,Swivel,Checks&Mission 4 10.71 7,651.40 7,662.11 2-3/8"SAFETY JNT 3 16.25 7,662.11 7,678.36 crwriummilmmCBF firing head,3.50"OD 2 4.20 7,678.36 7,682.56 7,682.56 7,690.001 (Partial) 7,690.00 7,703.64 13.0 ft bottom up 53 Gun 33 21.08 7,703.64 7,724.72 450 - 4 - 148 80 Gun 32 21.08 7,724.72 7,745.80 450 - 4 - 149 80 Gun 31 21.08 7,745.80 7,766.88 450 - 4 - 150 80 Gun 30 21.08 7,766.88 7,787.96 450 - 4 - 133 80 7,787.96 7,800.00 11.5 ft top down 47 7,800.00 7,809.04 1_1 Blank(Gun Puncher) 28 21.08 7,809.04 7,830.12 ; ; puncher 450 - 4 - 123 2 IMIIIIIIIMIIIIIIIIII7,830.12 7,850.00 1 7,850.00 7,851.20 0.5 ft bottom up 3 Gun 26 21.08 7,851.20 7,872.28 450 - 4 - 134 80 Gun 25 21.08 7,872.28 7,893.36 450 - 4 - 135 80 Gun 24 21.08 7,893.36 7,914.44 450 - 4 - 136 80 Gun 23 21.08 7,914.44 7,935.52 450 - 4 - 151 80 Gun 22 21.08 7,935.52 7,956.60 450 - 4 - 152 80 Gun 21 21.08 7,956.60 7,977.68 450 - 4 - 153 80 Gun 20 21.08 7,977.68 7,998.76 450 - 4 - 142 80 Gun 19 21.08 7,998.76 8,019.84 450 - 4 - 129 80 8,019.84 8,040.00 19.5 ft top down 79 8,040.00 8,040.921 1 Blank(Gun Puncher) 17 21.08 8,040.92 8,062.00 ii puncher 450 - 4 - 122 Blank(Gun Puncher) 16 21.08 8,062.00 8,083.08 1-1 puncher 450 - 4 - 120 Blank(Gun Puncher) 15 21.08 8,083.08 8,104.16 i puncher 450 - 4 - 119 Blank(Gun Puncher) 14 21.08 8,104.16 8,125.24 ill puncher 450 - 4 - 121 8,125.24 8,140.00 Ain(Partial) 8,140.00 8,146.32 5.5 ft bottom up 23 Gun 12 21.08 8,146.32 8,167.40 450 - 4 - 139 80 Gun 11 21.08 8,167.40 8,188.48 450 - 4 - 140 80 Gun 10 21.08 8,188.48 8,209.56 450 - 4 - 141 80 Gun 9 20.44 8,209.56 8,230.00 450 - 4 - 138 80 Bottom nose&Lower set of guns 180.90 8,230.00 _.. COIL TBG DEPTH . <--BHA length Count of Guns (Charges) --> 26 (1495) Depths are referenced by shot location. See additional handout for physical lengths. Intervals Top MD Bottom MDI MEW Net Loaded spf Blank (Gun Puncher)-5 Blank os 7,682.56 7,690.00 ' 7.44 :;,,,,,,r, , , , , „ ,,,,,, ,ir,,,,.! Partially Loaded Gun-5 1 Loaded 7,690.00 7,800.00 , ., 110.00 4 50.00 4 FullyLoaded Gun- 15 Blank 7,800.00 7,850.00 Bottom Gun- 1 2 Loaded 7,850.00 8,040.00 190.00 4 Blank 8,040.00 8,140.00 :100.00 3 Loaded 8,140.00 8,230.00 • 90.00 4 Bottom set of guns 8,230.00 j 8,410.90 180.90 RUN 1 PPE Total Loaded 390.00 Total Blank 338.34 CLUS Total Gun Length 728.34 Total Schlumberger BHA Length: 759.50 Ft. UPDATED 1FINAL Prepared By Reviewed By Client Representative: WCP/TCP/SDP-054 Scot Shier Nikolai Goshnin John Nicholson/Mike Grubb Revision:AKA1.4-15-Dec-07 1of1 Schlumberger Tubing C( veyed Perforating Client Well Rig Field Date Guns CINGSA CLUS 2 SLB 1 Kenai 1/8/2012 4.72"4spf 4505PJ Count of Entries ==> 11 Description Gun # Length Top Bottom Gun S/N Upper set of guns BHA 2 579.46 7,731.36 8,310.82 I m TCP eFire firing head 1 11.18 8,310.82 8,322.00 J 8,322.00 8,330.001 I artial) 8,330.00 8,343.08 12.5 ft bottom up 51 Gun 7 21.08 8,343.08 8,364.16 450 - 4 - 41 80 Gun 6 21.08 8,364.16 8,385.24 450 - 4 - 676 80 Gun 5 21.08 8,385.24 8,406.32 450 - 4 - 170 80 Gun 4 21.08 8,406.32 8,427.40 450 - 4 - 677 80 Gun 3 21.08 8,427.40 8,448.48 450 - 4 - 682 80 Gun 2 21.08 8,448.48 8,469.56 450 - 4 - 679 80 Gun 1 20.44 8,469.56 8,490.00 450 - 4 - 675 80 Bottom nose 0.86 8,490.00 8,490.86 ;OIL TBG DEPTH . 759.50 <--BHA length ,ount of Guns (Charges) —> (611) Depths are referenced by shot location. See additional handout for physical lengths. Partially Loaded Gun - 1 Intervals Top MD Bottom MD Net Blank Net Loaded spf Fully Loaded Gun -6 Upper set of .uns 7,731.36 8,330.00 598.64 Bottom Gun- 1 1 Loaded 8,330.00 8,490.00 ';f0/04,! s"r:',:1,7 ,;I,7, 160.00 4 RUN 1 80110N1 Total Loaded 160.00 Total Blank 598.64 CLL _ -2T Total Gun Length 758.64 otal Schlumberger BHA Length: 759.50 Ft. UPDATED 1.031w201019 FINAL Prepared By: Reviewed By: Client Representative: WCP/TCP/SDP-054 Scot Shier Nikolai Soshnin John Nicholson/Mike Grubb Revision: AKA1.4- 15-Dec-07 1of1 E E E E E E 0 0 NU, /, ,„ In ., 0 E O O O co UvO O O t.6 V1 V M N 14 O i , i 1 00 N N .--1 0 0 • O O N .--1 N .--1 c1 m .-1 .--1 N N _ N O N N D CO i U N m IT In _ m .1 D m 4=0C ° a U I-io VI CU a a ai = Vcc E co V ° v N ti _ O I O O O - tD m 0) N .--1 - N O 0) N - 00 m 00 m 0) O ,/ N N 0 v, v, �, L v) .7) 00 O. O. a Q. Q a Q a a a O o O O O O O O O O 00 lD (Ni O CO l0 Cr N .--I .--I .--I .--I .-•1 CINGSA Well: CLUS#2 Field: Cannery Loop 02-08-2012 1111111111111111.1 a) 01 2 t - a) - 5000 6000 7000 8000 20 30 40 50 60 70 80 90 100 110 120 Temperature (Deg. F) —Pressure — Perfs 7" —Temperature Report Date 2-7-2012 ';INGSA - DAILY DRILLING REPORT Date: 1/31/2012 Welt Name CLU Storage 2 BHA#: Con i ubing DSM Days: John Nicholson Target • Current Depth: 8577 Location: Kenai,AK 8577 Cell Phone: (907)299-4306 Depth. t,, 4l3ra. 0 Field/Pool: Cannery Loop/Sterling C Rig SLB DSM Mike Grubb s Contractor. Nights: Present • 23/1 CT Memory Log @ 7600' Rig Phone: '(907)398-3156 Phone: (509)431-7988 visa ,r ' operation: E,,,,d,„,,, „ ''''''''""'"1""""':::::'' •a ,. ' ..._. ,., '* ,� .: it ,;.� /r/.moi<.�, �.i% iG �,lrt,,,, .',,^:3z . ,_." '„„ .,i" .,$, �,,,�, '., . zA { i i #D two! 7-ASING I SIZE I WEIGHT 1 GRADE I THREAD I DEPTH I CEMENT COMPANY"''WIr1 i% actor: 20" 133# X-56 Welded 97' N/A July - 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - 7" 26 L-80 VAM 7604' N/A 19-Nov - P I,�,#1' '7 C 'PUMP#2 IMUD PROPERTIES: ]MUD ADDITIVES:ES: 1 Daily 'Cumulative PUMP ANF 0 WEIGHT GEL(50 lb bag) 367 PUMP TYPE 0 FUNNEL VIS S.ASH(50 tb bag) 65 LINER SIZE 0 R600/R300 KLA-GUARD 16 STOKE LNGTH 0 R200/R100 LOTORQ,776 3136 SPM R6/R3 ASPHASOL SUPREME 147 , 5 - GPS - PV CONQOR 404 8 GPM - GPM - YP POTASSIUM CHLORIDE 995 PSI - PSI - GELS FLOWZAN 127 DIMS UP MIN - :TMS UP MIN - API FLUID LOSS:, PAC 51 TOT CIR MIN - OT CIR MIN - CAKE APH GF-DESCO II 40 AVDP: AVDP: SOLIDS MYACIDE GA25 5 AVDC: AVDC: OIL/WATER ��, GEL-X 17 AVDC VDC. SAND CITRIC ACID/SAFE CARS 784 DRILL STRING&HYDRAULICS " PH RES1NEX 99 O'RING WT. - WOE - Pf/Mf CAUSTIC SODA 19 PICK UP - RPM - CHLORIDES SODIUM BICARBONATE/mrtabisul 47 0698 CKs' - TEA - CA BARITE/NUT PLUG/G SEAL - HSP - VOL.PIT-(BEL) LIQUIDS 2207 - PRESS DROP - HOLE-0313L) SOLIDS (EELS: hauled by AIMM) 4994.5 p D '' 5 JET VEL - API SCREEN Daily Mud Cum. 0 13822.5 ACTIVITY SUMMARY TIME SUMMARY ,;Start I Finish I Hours I Description Detail I Daily I Cumulative 6:00 Rig down move to GS-2. R/D work platform and move over RU/RD 15.50 155.50 GS-2.Move out C-pump and tool racks. Remove bowen Drilling 97.50 fast cap flange.Set BOP on well head. Lay out liner. Move Service/Repair Rig 9.00 coil carrier and center over CLU-2.Enclose work platform Surveys 0.00 and install heat trunk.Set power pack for coil unit run Hyd. Tripping 169.00 &control lines to unit and BOP. P/U injector head and install Change BHA 18.50 21:30 15.50 on bop flange/wellhead. Casing 59.50 21:30 22:30 1.00 R/U lines and fluid pack coil with glycol,fill system&bleed air Ceme € ' :; 17.25 22:30 Test Bop and related equipment to 250/4000 psi,test koomy Loggi ',./,,e7,0'41;1' 6.00 14.00 0:00 1.50 +system.Test witnessed by AOGCC bob Noble NU/ND Test 2.50 66.25 0:00 1:00 1.00 R/D injecter head.M/U MHA. DST/Core 0.00 1:00 2:00 1.00 M/U memory tools(GR,CCL),Install injector head Well Control 0.00 2:00 6:00 4.00 RIH log down©60 fpm,set flag @ 7600', log up©60 fpm WOC -., 3.50 to 7600' Safety Mee '&- .$ "' 0.00 Drilling Cement 0.00 Note:R/U pollard to set SSSV on Clu-1 15:00hrs Circ/Other,;; 60.50 24.00 j SEE REMARKS&COMMENTS BELOW TOTAL 24.00 676.00 ,; .''- ,W44 TEOTTOM HOLE - s �, i %ge ,,,fir, %. it,» z„u" , t7TY ��:y'TENI CONN DOWN CONN UP VENDOR .,,,:,,,',”V;;;;, � 'ltd.,, ��%,r; ��" 1: tS't^t'„;:r&<,,'',<:' u 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 BHA TOTAL LENGTH o.00 ,-; .11::,'&477-7t` s 17: DIESEL. No accidents or spills Diesel on Location dtly before 1,333 PJSM before change of activities Diesel Used Last 24 821 Diesel Received 3,400 TOTAL DIESEL 3,912 -,"qt . ." mom', e -, e ` -ERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Slumberger Rig Crew 8 12 96 Pollard wireline 5 7 35 PRA DSM 2 24 48 AHR boiler 2 8 16 PRA Safety 1 1 1 0 0 - Aimm Vac/roust 5 12 60 0 0 Slumberger Memory 2 12 24 0 0 _ 0 0 0 _ 0 - TOTAL COUNT 25 TOTAL MAN HOURS 280 ,INGSA - DAILY DRILLING REPORT Date 2/1/2012 Well Name CLU Storage 2 SHA#. CO'. i ubing DSM Days: John Nicholson \ Current Depth: 8577' Location: Kenai,AK Target 8577' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C COntrlagctor: SLB ghfMs: Mike Grubb Days Since 24/2 CT Present POH with guns Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Spud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET SIT GRADE TOTAL HOURS fTIHR CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July - Surface. 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - Intermediate ii 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tubing 7" 26 L-80 VAM 7604' N/A 19-Nov - PUMP#1 I PUMP#2 7;7';','," '",MUD PROPERTI a , Daily JCL/mutative PUMP MANF PUMP MANE 0 WEIGHT 1 P 367 PUMP TYPE PUMP TYPE 0 FUNNEL VIS x 65 LINER SIZE LINER SIZE 0 4118001R800 KLA-GUARD?' 16 fr- STOKE LNGTH STOKE LNGTH 0 R200/R100' LOTORQf7783136 SPM - SPM - Re/R3 ASPHASOi SUPeirprartaig ..'. 147 GPS - GPS - PV Ca,as .; '} 8 GPM - GPM - VP POTASSIUM CHLORIDE , , 995 PSI - PSI - GELS FLOWZAN 127 BTMS UP MIN i, - BTMS UP MIN - API FLUID LOSS PAC 51 TOT CIR MIN - TOT CIR MINI - CAKE APH/HT CF-DESCO II 40 AVDP AVDP SOLIDS MYACIDE GA25 5 AVDC: AVDC: OIUWATER GEL-X 17 AVDC: AVDC SAND CITRIC ACID/SAFE CARE 784 DRILL STRING&HYDRAULICS 1 PH RESINEX 99 STRING WT. - WOE - Pf/Mf CAUSTIC SODA 19 PICK UP - RPM - CHLORIDES SODIUM HICARBONATE/mrtabisulfl 47 SLACK OFF - TFA ii CA BARITE I NUT PLUG/G SEAL 698 MAX PULL - HSP - VOL.PIT-(BBL) LIQUIDS 2207 EGO - PRESS DROP - HOLE-(BEL) -SOLIDS (EELS hauled by AIMM) 4994.5 0000 5 JET VEL - API SCREEN Daily Mud Cum. 0 13822.5 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description 'Detail , I Cumulative 6:00 Cont.memory log from 7600'@ 60 fpm.Set catwalk for guns RU/R ` F 145.00 while poh w/memory log.Lay down memory log tools,Un Clliflllrtt:, h : 97.50 10:00 4.00 seat injector head set in ground rack. Service/Repams 9.00 10:00 15:00 5.00 R/U to run perf guns. Make up gun bha P/U34 guns including Surveys 0.00 blanks 754.98'BHA. Tripping ,; 1.50 174.50 15:00 P/U injector head and test to 4000 psi.ok. P/U injector head Change BHA ,, 18.50 18:00 3.00 and make up to gun bha Casing Crew 59.50 18:00 •RIH with Suns to flag at 7600',check depth.RIH tag bottom Cementing Crew 17.50 check depth and correct.Pull up to depth,pressure squence LoggingL r 4.00 20.00 to set gun off at inreval#4(8330'-8490'). Pull up to depth and NU/ND Test 64.00 pump ball to pressure to 2506 psi to fire#1(7690'-7800'),#2 DST/Core 0.00 21:30 3.50 (7850'-8040')(8140'-8230'),4.72"4spf 450PJ Well Control 0.00 21:30 23:00 1.50 Well static, POH to 300' WOC 3.50 23:00 2:00 3.00 PJSM , R/D injector head,L/D tools Safety Meetings 0.00 2:00 6:00 4.00 L/D guns GUNS 18.50 18.50 Circ/Other 72.50 24.00 SEE REMARKS&COMMENTS BELOW TOTAL 24.00 700.00 BOTTOM HOLE ASSEMBLY QTY I ITEM i CONN DOWN I CONN UP l VENDOR I O.D. I I.D. 1 GAUGE I NECK I LENGTH ITOTAL LENGTH 0.00 BHA TOTAL LENGTH o.00 '?, REM RKS a iCatitiliginS DIESEL - - - No accidents or spills Diesel on Locationday before 3,912 PJSM before change of activities Diesel Used Last24 472 Diesel Received TOTAL DIESEL 3,440 ' ` PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Slumberger Rig Crew 8 12 96 Pollard wireline 4 3 12 PRA DSM 2 24 48 _ 2 8 16 PRA Safety 1 1 1 0 0 Aimm Vac/roust 5 13 65 0 0 Slumberger guns 2 12 24 0 0 0 0 0 0 - TOTAL COUNT 24 TOTAL MAN HOURS 262 ,INGSA - DAILY DRILLING REPORT Date: 2/2/2012 Well Name CLU Storage 2 BHA#: Co.. .ubing DSM Days:', John Nicholson Target went Depth: 8577' Location: Kenai,AK 8577' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 ReId/Pool a; Cannery Loop/Sterling C Contractor. SLB Nighfst Mike Grubb Days Since 25/3 CT Present Spud Operation: Released to CLU-3 Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 'DRILLING DATA BIT# SIZE MFG TYPE, SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FTmR CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE.I - Conductor: 20" 133# X-56 Welded 97' N/A July - Surface: 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov14"4:- Air - 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - 7" 26 L-80 VAM 7604' N/A 19-Nov - 1 :',,, ,,,,,r; ,$3 PROPERTIES: IMUD ADDITIVES 1 Daily jcumulative t:fsia, If- P,M 0 NEI T GEL(50 lb bag) 367 '101146. 0 R,w;E S ASH(50 lb t 65 . i/ ', RSIZE ' 0 a ' KLA GUARD 16 LNGTH 0 R200/R100 LOTORQ/776 „ 3136 " d",' R6/R3 ASPHASOL SUPRA 147 OPS - GPS - 'PV CONDOR 404 :r ' 8 OPM - GPM - VP POTASSIUM CHLORIDE f 995 t PSI GELS FLOWZAN 127 . , ;,;;', - BTMS UP MIN - API FLUID LOSS. PAC 51 TOT OR MIN - TOT CIR MIN - CAKE APH/HT CF-DESCO II 40 AU kr P: AVDP. SOLIDS MYACIDE GA25 5 XOW AVDC: OIL/WATER GEL-X 17 AVDC: AVDC SAND CITRIC ACID/SAFE CARS 784 DRILL STRING&HYDRAULICS PH RESINEX 99 STRING WT. - WOE Pf/Mf CAUSTIC SODA 19 P ,j,MWA::`, - RPM - CHLORIDES SODIUM 81CAREONATE/tnrtabisulf 47 •a - TFA CA BARITE/NUT PLUG/G SEAL 698 r. - . - HSP - VOL.PIT-(BBL) LIQUIDS 2207 ititilrEZ sir - PRESS DROP - HOLE-(BBL) SOLIDS (EELS hauled by AIMM) 4994.5 SEMS7 t' 5 JET VEL - API SCREEN Daily Mud Cum 0 13822.5 ACTIVI � '1 t /"-• '4'',,7,; TIME SUMMARY Start I ; i . I Hours I;,,,,,,,„i; .a-¢; Option /� , , , . lDetall I Daily i Cumulative 6:00 10:00 4.00 Continue L/D Guns continue to keep hole full over the top. RU/RD 2.50 147.50 All guns fired. L/D total of 34guns 0{it� Z` . " 97.50 10:00 PJSM For R/U of N2 blow down of well. Move iso tanks. Run �� it R '° 9.00 steel lines for N2 spot n2 tanks. Move glyco from iso to Surd ,' 4', 0.00 glycol storage tanks.Move peak crane away from 400bb1 Tripp . "„:/;, 0%'F .21.50 176.00 11:30 1.50 tks.Test Coil&N2 lines 4000psi Set injector on well head& Change BHA , 4," 18.50 11:30 Begin blowing down well F surface to 7000'Hold at depth Casing Crew 59.50 17:30 6.00 and wait on n2 truck, Cementing Crew J' 17.50 17:30 19:00 1.50 Wait on N2 truck.Transfer fluids to be shipped into ISO tanks Logging 20.00 19:00 Fill N2 tanks.RIH to 8490'N2 at 800 scfm,tag LC @ 8495', NU/ND Test 1.50 65.50 POH©20fpm to 7400', N2 @ 1200scfm until returns stop Blow down 8.50 8.50 21:30 2.50 pull @ 30 fpm to 6800',306bbIs returns. Well Control 0.00 21:30 23:00 1.50 POH from 6800' WOC 'i 3.50 23:00 1:30 2.50 R/D injector head,set and chain down on truck.(1 hour shut Safety Meetings 0.00 in on well 20 psi,attemted to flow well pressure dropped to 0 GUNS 4.00 22.50 RELEASED TO CLU#3 @ 01:30 Circ/Other 1.50 74.00 % ' 19.50 SEE REMARKS&COMMENTS BELOW TOTAL 19.50 719.50 BOTTOM HOLE ASSEMBLY QTY 3 ITEM [CONN DOWN[ CONN UP 1 VENDOR [ O.D. [ I.D. A GAUGE i NECK :64TH liiiTAL LENGTH 0.00 BHA TOTAL LENGTH o.00 REMARKS&COMMENTS ' DIESEL No accidents or spills Diesel on Location day before 3,440 PJSM before change of activities Diesel Used Last 24 600 Called AOGCC(Jim Regg)reguarding BOP test For CLU-3 16:30hrs 2-2-12 Witness waved Diesel Received Attempt to free up ice plug on CLU-3 well with pollard W/O success. R/D pollard(8'below wellhead) TOTAL DIESEL 2,840 PERSONNEL ON LOCATION " t ,//if 4',„!,,,,7;,,,,„'•,,,, ?,t: COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE i COUNT HOURS TOTAL Slumberger Rig Crew 9 12 108 Pollard wireline _ 4 3 12 PRA DSM 2 24 48 Aimm p-tank plastic 2 1 2 PRA Safety 1 1 1 0 0 Aimm Vac/roust 5 13 65 0 0 Slumberger guns 2 12 24 0 0 0 0 0 0 - TOTAL COUNT ' 25 TOTAL MAN HOURS 260 -,INGSA - DAILY DRILLING REPORT Date: 2/2/2012 Welt Name CLU Storage 2 BHA#: Con •ubing DSM Days: John Nicholson Target !....,,:,.....0,/rrent Depth 8577' Location. Kenai,AK 8577Cell Phone; (907)299-4306 ci- Depth: Rig DSM -,-- Ftg/24hrs 0 Field/Pool: Cannery Loop!Sterling C ,. Pollard Nights: Mike Grubb Present Days Since 25/3 CT Released to CLU-3 '441€(?#0*:• (907)398-3156 Cell Phone: (509)431-7988 bi, Spud Operation: •-„,).<,)). , LLING DATA 4:,:;',:i5f.!7:14; :0/0%, BIT# SIZE MFG TYPE SER# ....:;%3t,;44.i.li?)1.511:i.,.t1::iii21.2t'A%,--)i,OUT . , FEET BIT GRADE TOTAL HOURS FT/HR . ' 1 'CASING I SIZE I WEIGHT I GRADE 1 THREAk' ,.' ,sEPTH I CEMENT COMPANY I DATE I - , Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov tuner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov Tubing 7" 26 L-80 VAM 7604' N/A 19-Nov PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily !Cumulative PUMP MANE PUMP MANE 0 WEIGHT GEL(50th bag) 367 PUMP TYPE PUMP TYPE 0 FUNNEL VIS S.ASH(50 lb bag) 65 LINER SIZE LINER SIZE 0 R600/R300 KLA-GUARD 16 STOKE LNGTH STOKE LNGTH 0 R200/R100 LOTORQ/776 3136 SPM - SPM Re/R3 ASPHASOL SUPREME 147 GPS - OPS PV :;;;,;.'q‘'''':, CONOOR 404 8 3PM - GPM POTASSIUM CHLORIDE 995 PSI - PSI '13 -,4:)47t,t) 127 SIMS UP MIN - BTMS UP MIN API :'' Ss,,„ ::‘,/,J4•:7T,,;,,,,•.•:• ••4,,•,,,i.,•'',,;.A•,„. "' • ' • •, '.....-• %,..... .. ,,, 51 TOT CR MIN - rOT CIR MIN CAKE::: T CF-DESCO If'ittia ,6 ••• 40 AVDP., AVDP SOLIDS '..iiii MYACIDE GA25 -, 4,•, , 5 .L., AVDC: i:VDC. OILIYY ATEF. .,, ,,.GEL-X 17 AVDC. AVDC SA . (,);k' CITRIC ACID/SAFE CARE ' 784 -,-'.--2i DRILL STRING&HYDRALILICIA:7,,,'zzzk4,,,, ,,;,','',7,44,5 idollX7t,,, , RESINEX 99 - WOE 01/Mi1 CAUSTIC SODA 19 PICK UP iii;::ii - RPM -- ))) CHLORIDE :-,..) SODIUM BICARBONATE/mrtabisulf 47 -•,, ) SLACK OFF -LA - TFA CA BARITE I NUT PLUG/G SEAL 698 • MAX PULL ..34,.., _ HSP VOL PIT-(E3BL). LIQUIDS 2207 ECO iiiii - PRESS DROP HOLE-(BBL) SOLIDS (EIBLS hauled by AIMM) 4994.5 0000 5 JET VEL API-SCREEN Daily IVIud Curn. 0 13822.5 ACTIVITY SUMMARY I TIME SUMMARY ,Start I Finish I Hours I Description [Detail I Daily I Cumulative 11:00 Move in pollard wire line. Rig up lubricator Test 3000psi RU/RD 2.50 147.50 RIH pull 5.250 sleeve in SSSV.POH.Make up SSSV oh Drilling 97.50 1:30 2.50 and set at 182'R/D lubricator and move out Service/Repair Rig 9.00 Surveys 0.00 Tripping 1.50 176.00 Change BHA 18.50 Casing Crew 59.50 Cementing Crew 17.50 Logging 20.00 NU/ND Test 1.50 65.50 Blow down 8.50 8.50 Well Control 0.00 WOC 3.50 Safety Meetings 0.00 GUNS 4.00 22.50 Circ/Other 1.50 74.00 2.50 SEE REMARKS&COMMENTS BELOW TOTAL 19.50 719.50 „,,,,,„.,_ g 1 S' '' ' ''''s',SsssSssss:.,,,„sssisss,Ss,,ss.,1sSSsSsis'ssk';SS_ ..„ssr,,,,,, , Vgiii,:,;•we-1,;1,5,:it));' ' l''' " '. -p''''''''-'1,).'V,"00.:::'.:;:::,....j,tRisa-,,g-7,;-, Ti,rf(Trei: v---;777•9•-p)Tb f,- retiiity,..jj'-' i Netx 1 LENGTH [TOTAL LENGTH ITEM " ' ''',r,',4.° ,6°V''''' - '4i."'''i'°,-,--,---(',- --,--i,,,-,,.,,,,,,,,-,•;,,,, ,L ,, 1 - 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 3,440 PJSM before change of activities Diesel Used Last 24 600 Called AOGCC(Jim Regg)reguarding BOP test For CLU-3 16:30hrs 2-2-12 Witness waved Diesel Received, Attempt to free up ice plug on CLU-3 well with pollard W/O success. R/D pollard(8 below wellhead) TOTAL DIESEL 2,840 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL _ Slumberger Rig Crew 9 12 108 Pollard wireline 4 3 12 PRA DSM 2 24 48 Aimm p-tank plastic 2 1 2 PRA Safety 1 1 1 0 0 - Aimm Vac/roust 5 13 65 _ 0 0 _ Slumberger guns 2 12 24 _ 0 0 0 0 0 0 - TOTAL COUNT 25 TOTAL MAN HOURS 260 ;INGSA - DAILY DRILLING REPORT I Date 2/7/2012 Well Name CLU Storage 2 BHA#: Coy, .ubing DSM Days: John Nicholson Current Depth: 8577' Location. Kenai,AK Target 8577' Cell Phone: (907)299-4306 • Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Rig Pollard DSM Mike Grubb trdt tor:' Nights: Days since 25/3 CT Present Wire line t;t Phone:' (907)398-3156 Cell Phone:' (509)431-7988 SKI ! Operation: DRILJNG DATA "` BIT# SIZE MFG TYPE SER# JETS, IN OUT FEET BIT GRADE TOTAL HOURS FTIHR CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH f CEMENT COMPANY I DATE I - - 20" 133# X-56 Welded 97' N/A July - 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tu• 7" 26 L-80 VAM 7604' N/A 19-Nov tillP#1 IPUMP#2 IMUD PROPERTIES: (MUD ADDITIVES: Daily ICuraulative P MANE, PUMP MANE 0 WEIGHT GEL(50 lb bag) , 367 P TYPEPUMP TYPE 0 FUNNEL VIS S.ASH(50 lb bag)- '.': .lei n..1.,, 65 LINER SIZE LINER SIZE 0 R600/R300 KLA-GUARD 16 STOKE LNGTH STOKE LNGTH 0 R200/R100 LOTORQ/776 3136 SPM - SPM - R6/R3 ASPHASOL SUPREME 147 GPS - GPS - PV CONQOR 404 '•110,15.,;,'4n" 8 GPM - GPM - YP POTASSIUM CHLORIDE 995 PSI - PSI - GELS FLOWZAN 127 BTMS UP MIN - BTMS UP MIN< - API FLUID LOSS\ PAC 51 TOT CIR MIN - TOT CIR MIN - CAKE APH/I '',,, CF-DESCO II 40 AVDP AVDP: SOLIDS MYACIDE GA25 5 AVDC: AVDC: OIL/WATER GEL-X 17 AVDC AVDC: SAND CITRIC ACID/SAFE CARS 784 DRILL STRING&HYDRAULICS PH RESINEX 99 WOB Pt/Mt CAUSTIC SODA 19 - RPM ";`/ CHLORIDES SODIUM BICARBONATE/mrtabisulf, 47 - TFA,,, ,,:, - CA BARITE/NUT PLUG/G SEAL 698 HSpp' - VOL.PIT-(BBL) LIQUIDS 2207 - PR��"; s` - HOLE-(BBL) SOLIDS [t iledayAi t};- 4994.5 DGOD`' 5 JET VEL. - API SCREEN Daily Mud Cum, 0 13822.5 , , ACTIVITY SUMMARY I TIME SUMMARY ...?..?..-‘7,!...,:r24...... :=' = ] Hours IDescription Detail l Daily I Cumulative 14:00 Move in and R/U pollard Wire Line service set Lubricator RU/RD 2.50 147.50 Test to 3000psi. 97.50 RIH Tool Hung up in SSSV 182.52.Tool passed through / If'Ri ;�; 9.00 SSSV unable to pull out of Valve.Work tool past SSSV W/ Survey ';= ;�,,, 0.00 no problem.Attempt to bounce out of valve. Rig up and Tripping 1.50 176.00 21:30 6.50 through valve to free up. No success.Shut down operation Change BHA 18.50 Casing Crew 59.50 Cementin Crew 17.50 ',,,.;,,,,,4-P0,1, 20.00 NUlNO ,ast /,''ice/; 1.50 65.50 Blow down 8.50 8.50 airs-gip,. Well Control �iij,7 0.00 WOC 3.50 Safety Meetings 0.00 GUNS 4.00 22.50 Circ/Other ,,,,.•,dli 1.50 74.00 7 ``"'1 u. 6.40,,, SEE REMARKS&COMMENTS BELOW DOTAL, ,, 19.50 719.50 c E I NtttTAL LENGTHr ' f' , o a CONN DOWN CONN UP VEN•+ , ...'. ' 1.p ,,/ 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 3.440 Diesel Used Last 24 600 Diesel Received TOTAL DIES] 2,840 %' , '''''PERSONNEL OWLoCATION ' ,. ,,r '. COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Pollard wireline 4 9 36 PRA DSM 1 12 12 1 0 PRA Safety 1 1 1 0 0 Aimm Vac/roust 1 4 0 0 0 0 0 0 0 0 0 - TOTAL COUNT 7 TOTAL MAN HOURS 49 `;INGSA - DAILY DRILLING REPORT Date: 2/8/2012 Well Name CLU Storage 2 BHA#: Coy, .ubing DSM Days: John Nicholson Target Current Depth: 8577' Location: Kenai,AK Depth: 8577' Cell Phone: (907)299-4306 Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Conttrrlagctor: Pollard DSM Mike Grubb pays Since Present �� 25/3 CT Wire lineig Phone: (907)398-3156 C Phone: (509)431-7988 Spud Operation: RD NN4Ga PA ,'.,, �„ /g3 ti5��/s' i x ,„;,,, , i MFG TYPE I SER# i, JETS IN OUT ,1 FEET SIT GRADE TOTAL HOURS '; FTt lR CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I - Conductor. 20" 133# X-56 Welded 97' N/A July - Surface: 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tubing 7" 26 L-80 VAM 7604' N/A 19-Nov - ,MP, .1%/7 MP#2 a%,, j,',, MUD PROPERTIES: IMUD ADDITIVES: I Daily (Cumulative ' , PUMP MANE 0 WEIGHT GEL(50lbbag) 367 14. F1'req#E PUMP TYPE 0 FUNNEL VIS S.ASH 50 ib bag} 65 LINER SIZE LINER SIZE 0 R600/R300 KLA-GUARD 16 STOKE LNGTH STOKE LNGTH 0 R200/Rt00 LOTORQ/776 3136 SPM - SPM - R6/R3 ASPHASOL SUPREME 147 GPS - GPS - PV CONQOR 404 8 GPM - GPM - VP POTASSIUM CHLORIDE 995 PSI - PSI - GELS FLOWZAN 127 V BTMS UP MIN,,% - I':TMS UP MIN - API FLUID LOSS PAG 51 TOT CIR MINI - -OT CIR MIN - CAKE API/hiT CF-DESSGO II 40 AVDP. „,i; AVDP. SOLIDS ACIDE GA25 5 AVDC: f`' AVDC: OIL/WATER GEL-X 17 AVDC AVDC SAND CITRIC ACID/SAFE GARS 784 DRILL STRING&HYDRAULICS PH RESINEX 99 STRING WT. - WOB - Pf/Mf CAUSTIC SODA 19 PICK UP - RPM - CHLORIDES SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF - TEA - CA BARITE/NUT PLUG/0 SEAL 698 MAX PULL - HSP - VOL.PIT-(BBL) LIQUIDS 2207 EGD - PRESS DROP - HOLE-(BBL) SOLIDS (phauled by AIMM) 4994.5 OCOD 5 JET VEL - API SCREEN :-::: F r i, 4994.5 ,,i„i, 0 13822.5 ACTIVITY SUMMARY J ? :INGSA - DAILY DRILLING REPORT Date: 2/22/2012 Wet Name CLU Storage 2 BHA#. Co.. .ubing DSM Days: John Nicholson Current Depth: 8577' Locations Kenai,AK Target 8577' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Rig Nabors Alaska-Rig 105 E DSM' Contractor: Nights: , Days Since 1 25/4 Present Secure location Rt Spud ] Operation: 9 Phone: (907)398-3156 Cell Phone: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FTA-IR CASING I SIZE I WEIGHT:( GRADE I THREAD I DEPTH l.''"'CEMENT OPANY ,"ii' 7' :,� Conductor: 20" 133# X-56 Welded 97' N/A11# July - Surface: 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tubing 7" 26 L-80 VAM 7604' N/A 19-Nov - MP#1 (PUMP#2 ]MUD PROPERTIES: ]MUD ADDITIVES: I Daily [Cumulative PUMP MANF 0 WEIGHT GEL(50 lb bag) 367 PUMP TYPE 0 FUNNEL VIS S.ASH(50 lb bag) 65 K ER SlZ8' LINER SIZE 0 8800/R300 KLA-GUARD 16 r"OKE LNGT ' STOKE LNGTH 0 R200/R100 LOTORQ/776 3136 'M - SPM - R6/R3 ASPHASOL SUPREME 147 .'S - GPS - PV CONQOR404 8 GPM - GPM - YP POTASSIUM CHLORIDE 995 PSI - PSI - GELS FLOWZAN 127 BTMS UP MIN - BTMS ," '„ - API FLUID LOSS PAC 51 TOT CIR MIN - TOT CIR MINI - CAKE APH/HT CF DESCO It 40 AVDP AVDP: SOLIDS MYACIDE GA25 5 I AVDC. AVDC: OILNVATER GEL-X 17 AVDC AVDC SAND CITRIC ACID 1 SAFE GARB 784 DRILL STRING&HYDRAULICS '' PH RESINEX 99 STRING WT. - WOB - Pf/Mf CAUSTIC SODA 19 PICK UP - RPM i'i/r - CHLORIDES SODIUM BICARBONATE/mrtabisua 47 SLACK OFF - j - CASNUT PLUG/G SQL 698 MAX PULL - HS" "<,.77t - VOL.PIT-(BBL) NIS e!` 711''''''-'' 2207 ECD - PRESS�,�N - HOLE-(BBL) SOLIDS (BBLS hauled by AMMO,: 4994.5 DCOD 5 JET VEL - API SCREEN Daily Mud Cum. 0 13822.5 ACTIVITY SUMMARY I TIME SUMMARY ,,,Start I" . Finish I Hours I Description JDetaii I Daily J Cumulative 6:00 PJSM;Set FMC plug in tubing hanger. Remove well head RU/RD, 2.50 147.50 tree. Pull SSSV control line out of pack off,cut off. Run Drilling 97.50 14gage wire inside of control line to 45'line stopped, pull Service/Repar Rig 9.00 wire and 17gage wire to 50',line stopped. Run .045 wire Surveys 0.00 to 63'wire stopped.Splice control line into pack off install Tripping 1.50 176.00 19:30 13.50 valve. Nipple tree up test void to 5000 10min test good Change BHA 18.50 19:30 6:00 Secure location shut down Casing Crew 59.50 Cementing Crew 17.50 Logging 20.00 NU/NO Test 1.50 65.50 Blow down 8.50 8.50 Well Control 0.00 WOC 3.50 Safety Meetings 0.00 GUNS 4.00 22.50 Circ/Otherw 1.50 74.00 ''as'" `t� SEE REMARKS&COMMENTS BELOW TOTAL » 7 19.50 719.50 BOTTOM HOLE ASSEMBLY .7 f '', QTY ITEM -" .,"CONN DOWN I CONN UP ', VENDOR O.A. I.D. I `r N ",; r ° • j 0.00 BHA TOTAL LENGTH 0.00 ' °',tell r t 4 �,,,,..', REIi K '& ... . iS No accidents or spills DIESEL Diesel on Location day before 1.800 Diesel Used Last 24 100 Diesel Received De mob Schlumberger coil TOTAL DIESEL, 1,700 7;;"'4f., PERSONNEL ® OCATION .\- 2.,..., COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Pollard wireline 1 10 10 PRA DSM 1 12 12 1 0 PRA Safety 1 1 1 0 0 Aimm Vac/roust 1 8 0 0 Peak Crane 2 12 24 0 0 Schlumberger Coil 4 12 48 0 0 0 - TOTAL COUNT 10 TOTAL MAN HOURS 95 ;INGSA - DAILY DRILLING REPORT Date 2/23/2012 Well Name CLU Storage 2 BHA#. V ,, dine DSM Days:', John Nicholson Current Depth: 8577' Location: Kenai,AK Target 8577' Cell Phone (907)299-4306 Depth: DM Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C ContRlactor: Pollards h Nigts Days Since 25/4 Present Secure location Ri Spud Operation: 9 Phone: (907)398-3156 Cell Phone: DRILLING DATA en-#, SIZE MEG TYPE SER# JETS IN OUT FEET BIT GRA DE TOTALHOURS FT/HR CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I - Conductor. 20" 133# X-56 Welded 97' N/A July - Surface. 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 _ VAM 8575' Schlumberger 16-Nov - Tubing 7" 26 L-80 VAM 7604' N/A 19-Nov - PUMP#1 IPUMP#2 IMUD PRQfiERTIES: IMUD ADDITIVE&:442 I ,;Daily (Cumulative PUMP MANEPUMP MANE 0 WEIGHT GEL(50 lb bag) 367 PUMP TYPE PUMP TYPE 0 FUNNELUIS S.ASH(50 lb bag) 65 LINER SIZE LINER SIZE 0 R500/R300 KLA-GUARD .:.I. 16 STOKE LNGTH STOKE LNGTH 0 R200/R100 LOTORQ/778 4,;'s!l. <,./ 3136 SPM - SPM - R6/R3 ASPHASOI„"?H"` . ., 147 GPS - GPS - PV CONQOR404 -- 8 ra,* GPM - GPM - YE POTASSIUM CHLORDE rfi y,, 995 t t,r _i PSI - PSI - GELS FLOWZAN 127 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC 51 TOT CIR MIN - TOT CIR MIN - .CAKE APH/HT CF-DESCO II 40 AVDP AVDP SOLIDS MYACIDE GA25 5 AVDC: AVDC: OIL/WATER GEL-X 17 AVDC: AVDC: SAND CITRIC ACID/SAFE CARS i 784 DRILL STRING&HYDRAULICS PH RESINEX 99 STRING WT, WOE P#!MI CAUSTIC SODA 19 PICK UP RPMtCHLORIDES SODIUM BICARBONATE/ 47 SLACK OFF - TEA - GA BARITE/NUT PLUG/G S ., 698 MAX PULL ' - HSP - VOL.PIT-(BBL) LIQUIDS 2207 EGO 1I1 - PRESS DROP - HOLE-(BBL) SOLIDS (BBLSr 4994.5 DCOD 5 JET VEL - API SCREEN Daily Mud Cum, 0 13822.5 ACTIVITY SUMMARY -- :, 74,14;,4,40., .,i",•.,i,;;;11,:AVIWeitiVelt, Start I Finish I Hours I Description IDetali ,rr,''Milli',, rl umuittove 12:30 Rig Up Wireline.Test Lubricator. Pull PX Prong and plug RU/RD !,,, ,, ,' :y' 147.50 from SSSV landing nipple. Set protector sleeve in nipple. Drjni ,; j 97.50 Run Sampler to 7,671'. Recovered oily water. Re-ran Service/Fe Rid 9.00 sampler. Recovered brine and perf debris from 7,671'. Rig Surveys 1`k'' 0.00 down wireline. Secure well. 1 s �j 19:30 7.00 Tripping _,Lft 176.00 Change BHA •,7� `" ,,7', 18.50 Casing Crew ', ? 59.50 Cementing Crew 17.50 Logging 20.00 NU/ND Test ", 65.50 Blow down ''';'''F',""•,""'',, 'y8.50 Well Control 0.00 WOC 3.50 Safety Meetings 0.00 GUNS 22.50 Circ/Other 74.00 ::;::::err,'"- '" 7.00 SEE REMARKS&COMMENTS BELOW TOTAL I'r f�A 719.50 `SOITOM HOLE ASSEMBLY OTY I ITEM I CONN DOWN 1 CONN UP 1 VENDOR I O.D. I I.D. f GAUGE ', ,-/%- . I LENGTH [TOTAL LENGTH 0.00 BHA TOTAL LENGTH o.00 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location'daybefo€e 1,800 Diesel Used Last 24 100 Diesel Received TOTAL DIESEL 1,700 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Pollard wireline 1 10 10 PRA DSM 1 12 12 1 0 PRA Safety 1 1 1 0 0 Aimm Vac/roust 1 8 0 0 Peak Crane 2 12 24 0 0 Schlumberger Coil 4 12 48 0 0 0 - TOTAL COUNT 10 TOTAL MAN HOURS 95 ^INGSA — DAILY DRILLING REPORT Date 2/24/2012 Well Name CLU Storage 2 BHA#: 1h,.eline DSM Days: Conrad Perry Current Depth 8577' Location. Kenai,AK ba+gtht 8577' Cell Phone: (907)727-7404 Ftg/Z4hrs. 0 Field/Pool: Cannery Loop/Sterling C , BHI Coil Nig Days SincePresent Spud 25/5 Operation: Rigging up (907)398-3156 Cell Phone: u ;uu �sr..o...0 cr , ........... n.. TYPE !//',7,75°':i' JETS Lr%;'�. ), ... ,,,,e; 7 !,A07-,,,,-- GRADE TOTAL HOU d. ..,,,r, EASING .. SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY ` I DATE I — uctor: 20" 133# X-56 Welded 97' N/A July - Surface: 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov Tubing 7"7" 26 L-80 VAM 7604' N/A 19-Nov - PUMP#1 ..; ISP#2 I MUD PROPERTIES: . e e TIMES, ,:;zn,3 r; i ;!,,, .$a , PUMP MANF PUMP MANE 0 WEIGHT GEL( ,' 367 PUMP TYPE PUMP TYPE 0 FUNNEL VIS S ASH( lbbag) 65 LINER SIZE LINER SIZE 0 R800/R300 KLA-GUARD 16 STOKE LNGTH STOKE LNGTH 0 R200/RI00 LOTORQ/7763136 SPM - ;.PM - R8/R3 ASPHASOL SUPREME 147 GPS - j,'PS - PV CONDOR4o4 8 - j PM - YP POTASSIUM CHLORIDE 995 GELS FLOWZAN 127 - y MS UP MIN - API FL ,! $ PAC 51 b j- oT CIR MIN - CAKE APH/k4'I' CF-DESCO II 40 AVDP. SOLIDS MYACIOE GA25 5 R'� ,✓ AVDC: OIL/WATER GEL-X 17 AVDC: AVDC. SAND CITRIC ACID/SAFE CARE 784 DRILL STRING&HYDRAULICS.. PH RESINEX 99 -ING WT. - WOE - Pf/Mf CAUSTIC SODA 19 UP - RPM - CHLORIDES SODIUM BICARBONATE/mrtabisul 47 •CK OFF - TFA - CA BARITE/NUT PLUG/G SEAL 698 • '4'":"''i - IiSP - VOL.PIT-(BBL) LIQUIDS 2207 - l ' DROP - HOLE-(BBL) SOLIDS (BELS hauled by AIMM) 4994.5 ! may„,,,,, 5 3,„VEL - API SCREEN Daily Mud Cum. 0 13822.5 J :' ACTIVITY SUMMARY I TIME SUMMARY «:}t -,1¢. g.. •'._.. . rs Description Detail Daily Cumulative 15:00 Laid out herculite around well. Coil and N2 equipment RU/RD 147.50 arrived location. Held Safety and Environmental orientation. Drilling 97.50 Spotted equipment. Commenced rig up. Service/Repair Rig 9.00 Surveys 0.00 19:00 4.00 Tripping 176.00 Change BHAs 18.50 Casing Crew i % 59.50 Cementing Crew s yi 17.50 g.,' Loggin ;f, ���j, 20.00 NU/ND Testr;, 65.50 Blow down 8.50 Well Control 0.00 WOC 3.50 Safety Meetings 0.00 GUNS 22.50 Circ/Other .y,;, 74.00 ''''' '''r4.00 SEE REMARKS&COMMENTS BELOW 4,P7, 1 i,; .. .w 719.50 BOTTOM HOLE ASSEMBLYF"'''"""'"'"—"' "—,, ' . 1 ',<, TY l ITEM [CONN DOWN] CONN UP I a VENDOR a .- A CI . I 1.0. I GAUGE j NECK' j 'f, 0.00 BHA TOTAL LENGTH o.00 „RI ARKS&COMMENTSiii'---,,-,„„ DIESEL No accidents or spills Diesel on Location day before 1,800 1111,',Dieeel.Used Last 24 -15 Jim Regg waived BOP Test Witness-2-23-2012 Diesel Received.. ''' TOTAL DIESEL 1,785 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL 0 _ PRA DSM 1 4 4 BHI Coil 5 1 5 PRA Safety 1 1 1 0 0 _ Aimm Vac/roust 1 4 0 0 ASRC Crane 1 6 6 0 0 PEAK Loader 1 12 12 0 0 0 - TOTAL COUNT 10 TOTAL MAN HOURS 28 ^INGSA - DAILY DRILLING REPORT Date 2/25/2012 Wen Name CLU Storage 2 BHA#: 1h,.-fine DSM Days:, John Nicholson Current Depth 8577' Location: Kenai,AK Target 8577' Cell Phone: 907-299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C rig BHI Coil DSM Conttractor Nights: Days Since 25/6 Present Rigging upRigPhone: Spud Operation: gg g (907)398-3156 Cell Phone: FRILLING DATA rte BIT# SIZE MFG TYPE, SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FTtHR CASING' 1 SIZE 1 WEIGHT 1 GRADE [THREAD 1 DEPTH 1 CEMENT COMPANY 1 ©'° ' Conductor 20" 133# X-56 Welded 97' N/A July - Surface: 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Ltner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tubing 7" 26 L-80 VAM 7604' N/A 19-Nov PUMP#1 "PUMP#2 , f a„ „i , IMUD,PR© ERTI S: I MiIUD ADDITIVES: ( Daily 'Cumulative ,MP MANE PUMP MANE ' 0WEIGHT GEL(50 lb bag) 367 P TYPE PUMP TYPE 0 1 4�''d S.ASH(5o lb bag) 65 LINER SIZE 0 }R6QW12 9 r',^ KLA-GUARD 16 t � � .,E LNGTH 0 l LOTORQt776 3136 %,;i ;, ROMS ASPHASOL SUPREME 147 - { - PV CONQOR 404 8 GPM - GPM - YP POTASSIUM CHLORIDE 995 kSI 7'2— - PSI - GELS FLOWZAN 127 MS UP MIN - BTMS UP MIN API FLUID LOSS PAC 51 T UR MIN TOT OR MIN E APH/HT DE-DESCO II 40 AVDP: :SOLIDS MYACIDE GA25 5 'y ,Z,,,,/ - ATER' GEL-X 17 '. ti ,%: - �' ` AND CITRIC ACID/SAFE CARE 784 DRILL STRING&HYDRAULICS... ... RESINEX 99 TIRING WT. - WOB - _Mg CAUSTIC SODA 19 '„,k UP - RPM Iiika.ORIDES SODIUM BICARBONATE/mrtabisulf 47 TFA CA BARITE t'NUT PLUG I G SEAL 698 - HSP - VOL.PIT-(BBL) LIQUIDS 2207 r1 - I-RESS DROP - HOLE-(BBL) SOLIDS ',(BELS hauled by AIMM) 4994.5 f, 5 � „ API SCREEN , ,. I ' r Hy Mud Cum, 0 13822.5 m ACTIVITY SUMMARY P4.,, ,, I TIME SUMMARY Start I Finish 1 Hours I Description !Detail I Daily I Cumulative 6:00 R/U BHI coil unit,Set BOP on well head and rig up. RU/RD 147.50 13:00 7.00 Install extra blind/shear rams/for reversing well bore fluids. Drilling ;, ,' 97.50 13:00 Start BOP test,flange leaking on adaptor to well head tighten Service/Repair Rig A',0 ; 9.00 re test flange failed.Adjust flange studs.Test ok.2X1 valve Surveys 0.00 failed test remove and replace.Test All BOP Components Tripping 176.00 18:00 5.00 250/4000.Witness waved by Jim Regg AOGCC. Change BHA 18.50 18:00 19:00 1.00 Secure Coil unit and location.Shut down 12 hr operations Casing Crew 59.50 Cementing Crew 17.50 Logging i , 20.00 NU/ND Test 65.50 Blow down 8.50 Well Control 1, A 0.00 WOC 3.50 Safety Meetings 0.00 GUNS j ,,,; 22.50 '•°,7,•;11 ,,'',)1.2 %ez; r rw a m %, .00 '' ; 74..0 SEE REMARKS&COMMENTS BELOW rem_ ?r.,, 719.50 BOTTOM HOLE ASSEMBLY „„ ,,' QTY I ITEM I CONN DOWN I CONN UP 1 VENDOR 1 0.0. I I.D. I GAUGE I NECK 1 LENGTH ITOTAL LENGTH 0.00 BHA TOTAL LENGTH o.00 'REMA S'84tI N1Ir DIESEL ''57:70,417,q7-1 No accidents or spills Diesel on Location day before 1,725 Well Head Pressures #1 1400psi#2 #3 480psi #4 200psi #5 180psi Diesel Used Last 24 450 Jim Regg waived BOP Test Witness-2-23-2012 Diesel Received 0 TOTAL DIESEll 1,275 PERSONNEL ON LOCATION T''"7 '' COMPANY NOTE COUNT HOURS TOTAL _ COMPANY NOTE COUNT HOURS TOTAL 0 PRA DSM 1 4 4 _ BHI Coil 5 1 5 PRA Safety 1 1 1 0 0 Aimm Vac/roust 1 4 0 0 ASRC Crane 1 6 _ 6 0 0 Weaver Bros Loader 1 12 12 0 0 0 - TOTAL COUNT 10 TOTAL MAN HOURS 28 ,INGSA - DAILY DRILLING REPORT 2/26/2012 Well Name CLU Storage 2 BHA#: Vi.. _iene DSM Days:': John Nicholson >�tt' 8577 Location: Kenai,AK Target 8577' Cel l", 907-299-4306 Depth: 0 'Ri Field/Pool Cannery Loop/Sterling C g BHI Coil Contractor' " Sp 25/6 ,i)peration.' Rig Phone (907)398-3156 'tR.ILLINGtATA r ,, - , -lT# SIZE MFG TYPE SER# "", ... JETS IN OUTy"" ) To-FAL HOURS IZE I WEIGHT I GRADE [THREAD I DEPTH I CEMENT CCSVIF9tNY I DA " 1 20" 133# X-56 Welded 97' N/A July - 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - '147; 11 „„, 7” 26 L-80 VAM 7604' N/A 19-Nov - ,PUMP#2 ''''" /.2„” IMUD PROPERTIES: IMUD ADDITIVES: I Daily !Cumulative F PUMP MANF 0 WEIGHT GEL(50 Ib bag) 367 t' P TYPE 'UMP TYPE 0 FUNNEL VIS S.ASH(50 Ib bag) 65 ':iER SIZE LINER SIZE 0 R600/R300 KLA-GUARD 16 TOKE LNGTH 0 R200/R100 LOTORQ/776 3136 SPM - R6/R3 ASPHASOL SUPREME 147 GPS PV CONQOR 404 8 GPM YPPOTASSIUM CHLORIDE 995 PSI - GELS FLOWZAN 127 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC 51 „” TOT CIR MIN - CAKE APH/HT CF-DESCO II 40 AVDP. SOLIDS YACIDE GA25 „„,;,;,,:4,v"!;: , 5 AVDC: OIL/WATER a „yX, 17 AVDC: SAND r acslD/SAFE CARE 4', 784 ;) .LL STRING&HYDRAULICS PH RESINEX 99 - WOE - Pf/Mf CAUSTIC SODA ' 19 - RPM - CHLORIDES SODIUM BICARBONATE/mrtabist 47 - TFA - CA BARITE/NUT PLUG/G S 4 , 698 - HSP - VOL.PIT-(BBL) LIQUIDS , ;d 2207 ia. SS'DROP - HOLE-(BBL) SOLIDS (BELS hauled R ” ,,rfc": 4994.5 bCOD fir„";, 5 VEL - API SCREEN Daily Mud Cum, 0 13822.5 ACTIVITY SUMMARY I TIME SUMMARY <' . .. u j Hours 1 Description !Detail I Daily ;„,I.,Curnulative 7:00 PJSM:Start up coil and pumps. P/U injector head, pull test RU/RD 147.50 9:00 2.00 and pressure test lines,found frozen lines from BOP test Drilling `; 97.50 9:00 10:00 1.00 Thaw out lines and replace(down time) Service/Repair Rig 9.00 10:00 RIH with coil to 175'Coil stopped due to 3.8 id sleeve POH Surveys 0.00 with coil pull injector,remove 4”od stabilizer,make up Tripping 176.00 11:00 1.50 injector head on well head Change BHA 18.50 11:00 RIH W/coil to 4000'Load coil with N2 Start reversing out Casing Crew 59.50 fluid at 5000' 1200scfm Inc to 1500scfm to 7300'POH to Cementing Crew 17.50 6300'unload 9bbl rih to 8394'tag up 100'early inc N2rate to Logging 20.00 1800scfm POH to 6300'unload 19bbls rih to 8394 well head NU/ND Test 65.50 pressure dropped down to 1340 POH to 6500'no fluid Blow down 8.50 19:30 8.00 displaced. POH and secure coil and location Well Control 0.00 '''::/, 3.50 ; » e"-• etings 0.00 ` + �»TAifia; 22.50 74.00 12.50 SEE REMARKS&COMMENTS BELOW 'oft " • ' , , 719.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN 1 CONN UP I VENDOR I O.D. 1 I.D. I GAUGE 1 NECK I LENGTH [TOTAL LENGTH 0.00 BHA TOTAL LENGTH o.00 s RE =9.�. '',• !,r:>=NT$ DIESEL , No accidents or spills Diesel on Location day before 1,320 Well Head Pressures #1 1400psi#2 #3 480psi #4 200psi #5 180psi Diesel Used Last 24 300 Diesel Received 0 TOTAL DIESEL 1,020 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL 0 PRA DSM 1 4 4 BHI Coil 5 1 5 PRA Safety 1 1 1 _ 0 0 Aimm Vac/roust 1 4 0 0 ASRC Crane 1 6 6 0 0 Weaver Bros Loader 1 12 12 0 0 0 - TOTAL COUNT 10 TOTAL MAN HOURS 28 ,INS - DAILY DRILLING REPORT Date 2/27/2012 Well Name CLU Storage 2 BHA#: 1h..,,Iine DSM Days: John Nicholson Current Depth: 8577' Location: j. Kenai,AK Target 8577 Cell Phone: 907-299-4306 Ftg/24hrs. 0 t - Cannery Loop/Sterling C Rig BHI Coil DSM' Contractor: Nights: DaysSincece 25/6 tion.„ i,, Rig Phone: (907)398-3156 Cell Phone' ;w•RILLING DATA s.j:., BIT#, SIZE MFG TYPE SER# JETS IN OUT FEET eltGRADE TOTAL HOURS FT/HR ',' ING`1 SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I m, ductor 20" 133# X-56 Welded 97' N/A July - ace 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - ediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - ;:r 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - tieing 7" 26 L-80 VAM 7604' N/A 19-Nov - PUMP#1 1 -., , ,., . ' ` , MUD PROPERTIES: !MUD ADDITIVES: I Daily (Cumulative '^MMP MANE °'S ANF 0 WEIGHT GEL(50 lb bag) 367 MP TYPE •• I,r„'TYPE 0 FUNNEL VIS S.ASH(50 lb bag) 65 ER SIZE // '11iiiiiiivs 0 R600/R300 KLA-GUARD 16 STOKE LNGTH 0 R200/R100 LOTOROR76 3136 - SPM;;:,;,...., - R6/R3 ASPHASOL SUPREME 147 'S - GP&:^: - PV CONDOR 404 8 GPM YP POTASSIUM CHLORIDE 995 P - PSI - GELS FLOWZAN 127 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC 51 ,T CIR MIN - TOT CIR MIN - CAKE APH/HT CF-DESCO II 40 SA AVDP: SOLIDS MYACID GA25 5 A ,: AVDC: OIL/WATER {311. 17 AVDC: AVDC: SAND and worm g ,..f,4-., ,,,.. H CARE 784 DRILL STRING&HYDRAULICS PH RESINEX 99 STRING WT. - WOE - Pf/Mf CAUSTIC SODA 'r 77,-;,7,,./:;.'. 19 K UP fel - RPM - CHLORIDES SODIUM BICARBONATE/mrtabi1 47 - TEA - CA BARIT 1, 1/Trr� 698 - HSP - VOL.PIT-{BBL) ! 2207 - PRESS DROP - HOLE-(BBL) SOLIDS (EELS hauled by A ) '' 4994.5 DCOD 5 JET VEL API SCREEN Daily Mud Cum. 0 13822.5 I ACTIVITY SUMMARY 1 TIME SUMMARY . I Finish I Hours I Description iDetail I Daily I Cumulative 7:00 PJSM:Start up coil unit,plow/remove snow around unit RU/RD 147.50 9:30 2.50 rig up#2 N2 pump truck. Drilling 97.50 Start injection test @ 2500scfm initial well head psi 365 Service/Repair Rig 9.00 monitor build up of well head pressure to 1688psi saw break Surveys 0.00 down,lncrease N2 to 5000scfm WH pressure continued to Tripping 176.00 drop down to 1640,#2 N2 pump failed(rupture disc)N2 Change BHA 18.50 Rate declined to 1820scfm Well head pressure continued to Casing Crew 59.50 drop Shut down N2 injection at 1225wel1 head psi. Monitor Cementing Crew „.:.* 17.50 14:00 6.00 well F/1 hour � ��� j 20.00 14:00 Release rigto CLU-4 y NUftVt3'Test f65.50 Blow down 8.50 Well Control 0.00 WOO 3.50 Safe Meetings” 0.00 (;'` 22.50 ra 74.00 ti , ,•,!,,, 8.50 'l SEE REMARKS&COMMENTS BELOW 'T ;,,;/, „Z ,,,;":' 719.50 --;> BOTTOM HOLE ASSEMBLY r QTY 1 ITEM 1 CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH ITOTAL LENGTH 0.00 BHA TOTAL LENGTH o.00 7. f,:.'i ..,. , ,,,: -1".'q., REMARKS&COMMENTv s,',,, y,, ,,,,, # A;iY iii," ,t„,, , No accidents or spills 1,100 Well Head Pressures #1 1400psi#2 475psi #3 480psi #4 200psi #5 250psi Diesel Used Last 2`9 300 Diesel Received 0 TOTAL DIESEL 800 '' 1 i 5 PERSONNEL ON LOCATION %' , COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL 0 PRA DSM 1 4 4 BHI Coil 5 1 5 _ PRA Safety 1 1 1 0 0 Aimm Vac/roust 1 4 0 0 ASRC Crane 1 6 6 0 0 Weaver Bros Loader 1 12 12 0 0 0 - ' TOTAL COUNT 10 TOTAL MAN HOURS 28 ^INGSA - DAILY DRILLING REPORT Date: 2128/2012 Well Name CLU Storage 2 BHA#: 4_ ,me DSM Days: John Nicholson Current Depth: 8577' Location. Kenai,AK Target 8577' Cell Phone: 907-299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Rigtra BHI Coil DSM Contractor: Nights: Days Since 25/6 Present Phone: (907)398-3156 Cell Pho€telf Spud Operation: DRILLING DATA %-;£fig su,,igt,,,. jugs,,,,y, ,,,,,2,4,4.,;,,,,,,i: BIT# SIZE „ ,,j ,,,I, J:77.,::-.4:,,, aUT 8 T r? eRADE l '1I9"'ILI r ,? " rrlia CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I - Conductor: 20" 133# X-56 Welded 97' N/A July - Surface: 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tubbing 7" 26 L-80 VAM 7604' N/A 19-Nov - PUMP#1 UMP#2 MUD,PR+; /r .. .IMt1CJl A r IVES!:' I !�;; %;',",,'r. , , ,:,,",' ' PUMP MANE PUMP MANE 0 WEIGHT l, GEL(50 lb bag) 367 PUMP TYPE PUMP TYPE 0 FUNNEL VIS S.ASH 150 Ib bag) 65 LINER SIZE LINER SIZE 0 R600/R300 KLA-GUARD 16 STOKE LNGTH STOKE LNGTH 0 R200/R100 LOTORQ1776 3136 SPM - SPM - R6/R3 ASPHASOL SUPREME 147 rn OPS - GPS - PV CONQOR 404 8 PM - GPM - VP POTASSIUM CHLORIDE 995 PSI - PSI - GELS FLOWZAN 127 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC 51 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT CF-DESCO II 40 AVDP: AVDP SOLIDS MYACIDE GA255 5 AVDC: AVDC: OIL/WATER GEL-X 17 AVDC: AVDC. SAND and worm CITRIC ACID/SAFE GARB 784 DRR SPRING&HYDRAULICS PH RESINEX 99 TRING WT. - WOB - Pf/Mf CAUSTIC SODA 19 PICK UP - 'RPM - CHLORIDES SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF - TFA - CA BARITE/NUT PLUG/G SEAL 698 MAX PULL - HSP - VOL.PIT-(BBL) LIQUIDS 2207 ECD - PRESS DROP - HOLE-(BBL) SOLIDS (BBLS hauled by AIMM) 4994.5 DCOD 5 JET VEL - API SCREEN ,4, y2, ,,,,,„;,4,. 0 13822.5 ,, ACTIVITY SUMMARY ';,', „, I', TIME SUMMA'_ r , ',> Start Hours :,, ..... I scriptt11f , Detail I Daily I Cum __ 9:00 Hold PJSM:R/U pollard wire line. RIH pull 3.8 dummy sleeve RU/RD 147.50 POH.M/U Sleeve for setting Plug and Prong, RIH and set in Drilling 97.50 SSSV body. POH M/U plug and set in Sleeve. POH RID Service/Rir Rig 9.00 15:00 6.00 PWL,release from location. Surveys 0.00 Trippi 't:F , f''''.: 1'1';':34';',,k, ,, 176.00 . Cha �¢ , , 18.50 Casing_'” 59.50 Cementi ffi F41 '° 17.50 Logging 20.00 NUIND Test 65.50 Blow down 8.50 Well Control 0.00 WOC 3.50 Safety Meetings 0.00 GUNS 22.50 Circ/Other 74.00 ,iii; iwa, .w,5.... SEE REMARKS&COMMENTS BELOW TOTAL .,. 719.50 WtEl it.' /i ' , r/ A - itiligio,04e. f 4. f, s wsp 0.00 BHA TOTAL LENGTH a.ao REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 1,100 Well Head Pressures #1 1400psi#2 475psi #3 480psi #4 200psi #5 250psi Diesel Used Last 24 300 _,Diesel Received 0 ', TOTAL DIESEL 800 a y 1 • g9 PERSONNEL ON LOC,'"...:,..,:::r- COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL 0 PRA DSM 1 4 4 BHI Coil 0 1 0 PRA Safety 1 1 1 Pollard WL crew 4 6.5 26 Aimm Vac/roust 1 4 0 0 ASRC Crane 1 6 6 0 0 Weaver Bros Loader 1 12 12 0 0 0 - TOTAL COUNT 9 TOTAL MAN HOURS 49 'INGSA - DAILY DRILLING REPORT ,, ,,,,-,-- 3/3/2012 0 Well Name CLU Storage 2 BHA# V . .,ne DSM Days. Conrad Perry l'i..:. '''':• 8577' F.' Location: Kenai,AK Target 8577' Cell Phone: 907-727-7404 Depth: 0 "' Field/P°6.' Cannery Loop/Sterling C Rig BHI Coil OSM Contractor. Nights: „ 25'1 Present Rig Phone- (907)398-3156 Cell Phone '7 DRILLING DATA DATA BIT# SIZE MFG TYPE A SER# JETS IN OUT FEET BIT GRANTOTAL HOURS FTIHR SING I SIZE [WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I 20" 133# X-56 Welded 97' N/A July 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov iulsing 7" 26 L-80 VAM 7604' N/A 19-Nov PUMP#1 '';:z:17/;:', ri;;;;;',.....;:#10!..VZ-Yr,Z.&: j7.444P1ILID PROPERTIES: 'MUD ADDITIVES: ' ' I Daily ICuritalative PUMP MANE 0 WEIGHT GEL(50 lb bag) 367 PUMP TYPE - 0 0 FUNNEL VIS S ASH(50 lb bag) 65 -,.. -SIZE LI :;:::;....i.:.;11 0 R600/R300 KLA-GUARD 16 s1.1;11:11 0 R2901R 100 3136 '•:13V, - , , 'RO/R3 ASPHASOL.SUPREME-;,,,.,•,:-.t *. 147 P,;',',• :1,.,;',4 - 7.;i1j40a., PV CONDOR 4,04' ':.°)7#,9 8 _ ref-*'':'1i:Zit: YP POTASSIUM CHLORIDE 995 1:. .„„,...........,, - . pELS FLOWZAN 127 ,., - ?:r API FLUID LOSS PAC 51 JTCIR MIN - -•tA, 11,141114,4.; CAKE APH/HT CF-DESCO II 40 40 Arni,fic::"L;. "' SOLIDS ,ild:1•7"7 :.,,' MYACIDE GA25 .,,-. <,;;/,/ 5 OIL/WATER ,/' GEL-X ,;;;A:k 17 AVDC' AVO ,:-:• SAND and worm CITRIC ACID/SAFE cARIiiir;41. 784 , DRILL STRING&HYDRAULICS PH RESINEX 99 STRINGWT. - WOB P1/MI CAUSTIC SODA 19 PICK UP - RPM CHLORIDES SODIUM BICARBONATE/mrtabisuil 47 SLACK OFF - TFA CA BARITE/NUT PLUG/G SEAL 698 MAX PULL - HSP VOL.PIT-(BBL) LIQUIDS 2207 ECO - PRESS DROP HOLE-(BBL) SOLIDS (BBLS hauled by AIMM) 4994.5 DCOD 5 JET VEL APISCREEN Daily Mud Cum, 0 13822.5 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description jDetail I Daily I Cumulative 12:00 Hold PJSM: Rig up BHI N2 to Wing valve. Test lines to 4000 RU/RD 147.50 psi. Install 1/2"ball valve on control line outlet. Open well Drilling 97.50 and pressure up well to 1000 psi with N2. Open 1/2"ball Service/Repair Rig 9.00 valve. No communication.Pressure up well to 2000 psi.-no surveys 0.00 •communciation. Pressure up to 3000 psi-no Tripping i 176.00 communication.Rigged Down BHI N2. Left ball valve closed i for 1 hour. Opened ball valve and blew control line dry. Change BHA 18.50l 17:00 5.00 Casing Crew 59.50 17:00 18:00 1.00 Pollards purged line with methonal and hydraulic oil mix. Cementing Crew 1;! 17.50 18:00 18:30 0.50 Bled N2 pressure off well. Secured well. Loggingp 20.00 , NU/NO Test 65.50 Blow down 8.50 Well Control 0.00 WOC 3.50 Safety Meetings 0.00 GUNS 22.50 Circ/Other , 74.00 6.50 SEE REMARKS&COMMENTS BELOW TOTAL 719.50 BOTTOM HOLE ASSEMBLY QTY I ITEM 1 CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH ITOTAL LENGTH 0.00 BHA TOTAL LENGTH 0.00 ''' '-'"w•w• '' '''''''"'-'"'‘''''''' m"". ',REMARKS&COMMENTS DIESEL '''''''''''" 4a-',, -,:-.,:;:,/' --'- '-'-' "- • - ','' No accidents or spills Diesel on Location day before 1,100 Diesel Used Last 24 -150 Diesel Received -850 TOTAL DIESEL 100 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL 0 PRA DSM 1 65 6.5 BHI Coil 0 1 0 PRA Safety 1 1 1 Pollard WL crew 4 1 4 Aimm Vac/roust 1 6.5 0 0 ASRC Crane 0 0 0 0 0 Weaver Bros Loader 1 6.5 6.5 0 0 0 - TOTAL COUNT 8 TOTAL MAN HOURS 18 INGSA - DAILY DRILLING REPORT Date: 3/4/2012 Well Name CLU Storage 2 BHA# 1h. .ne DSM ‘ , Conrad Perry Current Depth: 8577' Location: Kenai,AK Target 8577' Cell Phone'` 907-727-7404 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Cantor Pollards DSM Days Since Present Spud 25/7 Rig Phone (907)398-3156 Cell Phone: bRILLING DATA" BIT# SIZE MFG SER# JETS 1N OUT FEET BIT GRADE TOTAL HOURS FT/HR CASING SIZE WEIGHT GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE C't6tor, 20" 133# X-56 Welded 97' N/A July - 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov 40# L-80 BTC 7746' Schlumberger 11-Nov - 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - s 7" 26 L-80 VAM 7604' N/A 19-Nov - IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES, 4i i 'Cumulative ',..UMP ;SUMP MANF 0 WEIGHT 367 1,0 "MP TYPE 0 FUNNEL VIS S.ASH(50llb bag) 65 iER SIZE 0 R600/R300 KLA-GUARD 16 STOKE LNGTI 0 R200/R100 LOTORQ1776 3136 - SPM - R6/R3 ASPHASOL SUPREME 147 - S ` - PV CONQOR 404 8 - GPM - YP POTASSIUM CHLORIDE 995 - PSI - GELS FLOWZANi: ,, ,,,,f, 127 Tb� tN - API FLUID LOSS PAC 51 - s - CAKE APH/HT F DES II ,, 40 1%-----';'"--"; 7 NSOLIDS MYACIDE GA25 ' „,„/, 5 ii . - t ', OIL/WATER GEL-X %9 17 AVDC: s s f SAND and worm CITRIC ACID/SAFE CARE 784 DWATa774, _ '' ”(JCS' PH RESINEX 99 STRING WT. i.T - Pf/Mf CAUSTIC SODA 19 PICK UP - ''';4';','„'- - CHLORIDES SODIUM BICARBONATE/mrtabisulf 47 SLACK kir, ,,, - - CA BARITE/NUT PLUG/G SEAL 698 MAX PULE s „ VOL PIT-(BBL) LIQUIDS 2207 ECD - °''RESS DROP - HOLE-(BBL) SOLIDS (BBLS hauled by AIMM) 4994.5 DCOD 5 JET VEL API SCREEN Daily Mud Cunt. 0 13822.5 ACTIVITY SUMMARY I TIME SUMMARY ":Start ,,,.... ;Finish I Hours f Description 'Detail I Daily I Cumulative 8:00 I Rigged up Wireline. Purge control line with hydraulic oil. Set RU/RD 147.50 SSSV in Landing nipple at 179'. Function Tested SSSV Drilling 97.50 several times. Pressured up control line to 4000 psi. held ok. service/Repair Rig 9.00 Bled off pressure. Gas in line. Purged line and re-pressured Surveys 0.00 to 5000 psi. Bled off pressure. No gas. Changed out needle Tripping 176.00 valve. Re-pressured to 5000 psi.-Valve open. Change BHA 18.50 13:00 Casing Crew 59.50 1 Cementing Crew 17.50 Logging 20.00 NU/ND Test65.50 Blow down 8.50 Well Control 0.00 WOC ,'%`; 3.50 Safety Meetin• 0.00 GUNS ,t 22.50 Circ/Other 74.00 _,,tom4., , SAO 71SEE REMARKS&COMMENTS BELOW TOTAL „, 719.50 ... m r a s 7 ij1// 5 /iii„! ?!e :.:d mss- ..:.......: 0.00 BHA TOTAL LENGTH 0.00 ii REMARKS&COMMENTS No accidents or spills Diesel on Location day before 1,100 Diesel Used Last 24 -150 Diesel Received -850 TOTAL DIESEL 100 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL 0 PRA DSM 1 6.5 6.5 BHI Coil 0 1 0 PRA Safety 1 1 1 Pollard WL crew 1 1 1 Aimm Vac/roust 1 6.5 _ 0 0 ASRC Crane 0 0 0 0 0 Weaver Bros Loader 1 6.5 6.5 0 0 0 - TOTAL COUNT 5 TOTAL MAN HOURS 15 Cock InletNaturat-Gas 3COOK000 inlet Natural Gas Storage Alaska,LLC 3000 Spenard Road PO Box 190989 STORAC Anchorage, 99519-0989 �,?�� .;a.�< Main:907-334-4-7980 Fax:907-334-7671 www.cingsa.corn February 6, 2012 RRECEIVED FEB 0 6 2no Alaska Oil&Gas Cons. Commission Alaska Oil & Gas Conservation Commission Ancoroge 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA)Records and Reports Information Acquired from Operations Wells: CLU Storage 1 & CLU Storage 2 r) 4tRI17n, 11 — 3r ti .21173 In accordance with 20 AAC 25.070(3), CINGSA hereby submits the following records and reports, in electronic format, related to drilling of wells, CLU Storage 1 and CLU Storage 2. 1. Daily Drilling Report - checked 2. Completion Schematic 3. Directional End of Well Report 4. Cementing Recap, Redacted 5. IFE Recap, Redacted 6. NAD27 Final Survey/Directional Data File 7. Certified Surface Location As Built 8. Certified BHL As Built Thank you and if you have any questions, please do not hesitate to contact Tom Arminski at 907-334-7743, or tom.arminski@enstarnaturalgas.com. Sincerely, co.wcy M. Colleen Starring Vice President Enclosures as stated ail — 13S Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Monday, January 30, 2012 4:41 PM To: 'cperry@att.net' Cc: DOA AOGCC Prudhoe Bay; Noble, Robert C (DOA) Subject: RE: BOP Test Pressures(CLU storage 2- PTD 211-135) Conrad, Dropping the test pressure to 4000 psi is approved (from 4500 psi) . This is an induced surface pressure in order to activate the E-fire TCP guns and is well above the MASP already. Please forward this email to the CTU unit on site and advise our inspector of the approved change to the BOP test pressure. I will make the change to the upcoming CLU ST 3 well also. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Conrad Perry [mailto:cperry@att.net] Sent: Monday, January 30, 2012 4:14 PM To: Schwartz, Guy L(DOA) Cc: 'Richard Gentges'; Well Pad Subject: BOP Test Pressures Guy, We have re-evaluated the operational pressures that are required for CLU Storage 2 and 3 and wish to reduce the BOP/Coil test pressures down from 4,500 psi to 4,000 psi. This is well above maximum anticipated surface pressures and still allows us to fully activate the firing heads. conrad 1/30/2012 sijr iffla ALAsEn SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 M. Colleen Starring Vice President Cook Inlet Natural Gas Alaska, LLC ail .. 13J- P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Pool, CLU Storage 2 Sundry Number: 312-035 Dear Ms. Starring: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. This sundry approval includes perforating and a limited flowback for cleanup but does not authorize injection of gas for the initiation of the storage project. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Si.c-rcely, 410/ oh � "• + :n • 'ss'oner DATED this ieray f , 2012. • Encl. STATE OF ALASKA E VE V ALASKA OIL AND GAS CONSERVATION COMMISSION *t! i..�A 2 4 O12 APPLICATION FOR SUNDRY APPROVALS 1' 20 AAC 25.280 ' uaf Cons-LIMI j n 1.Type of Request: Abandon❑ Plug for Redrill❑ Perforate New Pool❑ Repair Well❑ Change Err Progra--m >.:,tir � fr 0 Suspend❑ Plug Perforations❑ Perforate Q . Pull Tubing❑ Timension❑ Operations Shutdown❑ Re-enter Susp.Well Q• Stimulate El Alter Casing❑ Other: El _ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Cook Inlet Natural Gas Alaska,LLC Development ❑ Exploratory 0 211-135 • 3.Address: 6.API Number: Stratigraphic ❑ Service ❑ P.O.Box 190989,Anchorage,AK 99519Gstor Q 50-133-20599-0000 " 7.If perforating,closest approach in pool(s)opened by this operation to nearest 8.Well Name and Number: propertyline where ownershipor landownership Spacing Exception Required? Yes ❑ No ❑✓ CLU Storage 2 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL 391627 Cannery Loop/Sterling C pool. 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 8,577' • 5,110' , 8495' 5,095' none none Casing Length Size MD TVD Burst Collapse Structural Conductor 94.6 20" 117.5' 117.5' n/a n/a Surface 2697.0 133/8" 2719.0' 2414.0' 3,450 1950 Intermediate 7725.5 95/8" 7746.0' 495¢.0' 5,750 3090 Production Liner 971.0 7" 8575.0' 5110.0' 7,240 5410 Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: ' Tubing Grade: Tubing MD(ft): See Attached Program See Attached Program 7' L-80 7746.0' Packers and SSSV Type: EH!9 5/8"HR ZXPN Liner Top Packer Packers and SSSV MD(ft)and TVD(ft): Halliburton 7"WL FXE SSSV Pkr-7,60414,928' SSSV-179'/179' 12.Attachments: Description Summary of Proposal 0 13.Well Class after proposed work: Detailed Operations Program Q BOP Sketch Q Exploratory ❑ Development El Service Q ' 14.Estimated Date for 15.Well Status after proposed work: 29-Jan-12 Commencing Operations: Oil ❑ Gas ❑ WDSPL El Suspended 0 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR El - SPLUG El 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Tom Arminski 907 334-7743 Printed Name M. Colleen Starring 907 277-5551 Title Vice President Signature ,t O Phone Datep__ L y / Z COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 5 2 2'C"v) Plug Integrity ❑ BOP Test Mechanical Integrity Test El Location Clearance ❑ Other. 4 1 gVe) ,5z- d O/ i t- i Subsequent Form Required: /0-- 4 / / APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: /•' ' f 1 ?irtIvieDitas JA '31 2011 ORIGINAL 1.Z? /Z -i) �, I IV CLU Storage 2 Outline Perforating and Well Clean Procedures GENERAL SAFETY GUIDELINES A pre job safety meeting will be held with all affected personnel before every phase and for any change of program. Topics should include the following points: • H2S risks, spill prevention,and well control issues • Personnel assignments • Maximum safe pumping pressure prior to firing guns • Contingencies It should be stressed that while picking up and running the perforating string, only essential personnel should be on the work platform. Normally"essential personnel" will consist of the perforating crew and a roustabout for crane signals. All other personnel will stay off the platform and out of the cellar until the perforating string is at least 300' below ground level. Radio silence is not required with the Schlumberger systems described in this recommended practice. Fired guns will not be recovered unless the well is dead and stable. Should the well flow during recovery with the guns across the BOPs,the deployment bar with circulation ports on the lower end and a tested TIW valve on the upper will be stabbed into the gun BHA and immediately lowered below the BOPS. The pipe rams will then be activated on the deployment bar shutting the well in. RIG UP AND PRESSURE TEST 1. Notify AOGCC of upcoming rig up and BOP test 48 hours prior. Confirm SSSV protection sleeve is in place. 2. Mobilize and rig up 2 3/8"Coil tubing and Well testing equipment to CINGSA Drill Pad. 3. Position Blink Rams in upper Combi BOP body and 2 3/8" pipe rams in lower body. Pre-test BOP,all lines and 'f tar valves to 250 psi/4500 psi. Install fusible cap on SSV. 4. Call for AOGCC Inspector. Pressure test BOP, all lines and valves to 250 psi/4500 psi. Ensure form 10-424 is sent in to AOGCC within 24 hours of Pressure Test. CORRELATION RUN 5. Pick up memory GR/CCL. Pick up and tag stuffing box for a zero. RIH at 60-80 fpm. Take diesel freeze protection initial returns to slop tank. Break circulation every 1000'. 6. Tag Float Collar at 8,495'. Flag coil and POH while slowly circulating to back fill tubing displacement volume. 7. Make depth correlations for perforating. TCP Perforating 8. Pick up safety joint,TIW valve and any necessary crossovers to top of CT Jacking Frame. 9. Pick up and space out gun assembly to perforate the following intervals(One run retired) Run Sheets are attached. ✓ Run#1- Bottom 8,490'to 8,330' 160' Guns/8' blank Run#1-Top 8,230'to 8,140' 90'Guns 8,040'to 7,850' 190'Guns 7,800'to 7,690' 110'Guns/157' blank Total BHA Length-734' Perforations 4.5" PowerJet 4505 HMX 4 SPF MD Perforation TVD Perforation From To Footage From To Footage 7690 7800 110' 4944.77 4965.9 21.13' 7850 8040 190' 4975.88 5012.12 36.24' 8140 8230 90' 5030.42 5046.58 16.16' 8330 8490 160' 5064.35 5093.65 29.3' Total Footage 550' Total Footage 102.83' 10. Make up Coil Tubing Running tools. 11. Pickup BHA and injector head with crane. Remove slip bowl. 12. Lower injector and make up lubricator connection. 13. Pick up and tag stuffing box. Set zero. RIH tagging float collar for depth conformation. Set guns to perforating depth. 14. Activate E-Fire head according to TCP specialist procedures. Verify firing.Check well for pressure. 15. Pick up to second interval depth. Pump ball to seat and perforate second interval. Verify firing. Check well for pressure. 16. Pull out of hole until connector tags stuffing box. 17. Check well for pressure. Open well and confirm well dead. Observe for 15 minutes. 18. Break lubricator connection and raise injector head. Disconnect coil.Set injector head off to the side. 19. Lay down spent perforating guns. Note: perform TIW stab-in drill at least once per shift. Record on daily report. WELL CLEAN UP 20. Pick up circulating wash nozzle and injector head with crane. Lower injector head and make up lubricator connection. 21. Run in hole to 8495' while pumping N2 at a rate of 750-1250 scfm. Take returns through choke manifold to Ptank. Note Liner portion of well was displaced with FloPro perf fluid at 8.6 ppg. 22. Monitor returns for methane. Strap tanks for return volume. Continue pumping N2 until well is clean of brine and flowing gas. Shut off N2. 23. Flow well clean for one hour or until fluid is off perforations while POH with coil . Record pressures and rates. 24. Once coil is clear of tree, close upper and lower master and. Bleed pressure off through choke manifold until no flow. Close swab valve. 25. Nipple down coil. Nipple down test equipment. Send fluids to AIMM for disposal. 26. Release coil unit. CINGSA PROJECT COILED TUBING STACK UP Kenai,AK s. ►1ra4`' CI Injector Head •I &OW Commotions!Stnaper W 15 tt of 7.00-lubricator . q . Lou"turntwRot' .'''�'N.i 2.375•CT Stang 7 OM SM Heed r e•,s w7nutbt a err Well Clean Rig Up 150 MAWP P-Tank loo' • SSV-2" 2" Gas 4; LoTorc loo' Choke Measurement • Tree-7"5k • relief € ::: : ::: • E> Tank drain • ^ 4"-206 150' 2"-1502 wingx 100' 4"-206 Thread 2"-1502 data header header V Gas to client tower CINGSA CLU Storage 2 FMC FMC Treelhea7'x5000#/co1mp0te with ibow1 Proposed Completion Schematic 1/23/2012 141 1 '-i , 20" 133#X56 driven to 117.5'TVD/117.5'MD 7" Halliburton Wireline Retrievable SSSV c 179'TVD/179' MD -R " PIrlA--, ko .`,—' 13 3/8"68#J55 BTC Surface Casing(a7 2,414'TVD/2719' MD , 16" hole/Cemented to Surface 7 r f Davis Lynch DV Collar @ 3,483' eT . r= 61 s . 7"26#L80 Vam Top Tubing A 7"x 9 5/8" Baker ZXP Liner Top Packer with 10'seal bore @,4,928'TVD/7,604'MD , rA ti 9 5/8"40# L80 BTC Intermediate Casing f' @ 4,955'TVD/7,746'MD - p ', 12 1/4" hole/Cemented to Surface ,,' R MD Perforation TVD Perforation ✓. •+ From To Footage From To Footage s (7690 7800) 110 4944.77 4965.9 21.13 ..7i. 7850 8040 190 4975.88 5012.12 3624 ry 1 ni, 8140 8230 90 5030.42 5046.58 16.16 + ® 8330 8490 160 5064.35 5093.65 29.3 i • • 1111 Total Footage 550.00 Total Footage 102.83 1 7"26#L80 Vam Top Production Liner from 4,928'TVD/7,604'MD TOP to 5,110'TVD/8,575' MD/Cemented 5,110'TVD/8,577'MDTD 8 1/2" hole Perforating Run Sheets SChillmberger Tubing Conveyed Perforating gent Wel Fed DIE .=Jts CINGSA C..LU2 :x.81 ....el al 1 5211:_ -'2' 4 C_D. ....17 cr e'Stes- i DasalptIon Gun I Limp Top Bottom Gun SR, .E='nag Pend 14.50 7,578 DE 7.632.56` - EIIIIIIIPIF .34 7,582E5 7, e:OC Gun fid +81 34 7,690.00 7,703.64 13.0 It bottom up 53 3,-, 33 21.06 7,703.64 7,724.72 80 e4.., 32 21.06 7,724.72 7,745.80 80 o._, 3' 21.08 7,745.80 7,766.88 80 0 - 3C 2'08 7,7G6.86 7,787.% 8] I 29 1208, 7,787.96 7,800.00 11.5 R top down _� 47 ' 29 9.14 7,500.2C 7,80=C.: faun Pumas.) 2E 2' 7,509.04 7,8-K.12 pinch r • 7,E3012 7,85:00 27 1.20 7,654100 7,651.20 0.5 ft bottom up MEI 3 G un 26 21.06 7,651.20 7,872.28 8] Gum 25 21.08 7,67220 7,893.30 8] G un 24 21.08 7,85',3.36 7,514.44 8] Gun 23 21.08 7,314.44 7.335.92 8] Gun 22 21.06 7,935.52 7,3456.00 8] Gun 21 21.06 7,956.60 7,577.05 8] Gun 20 21.00 7,977.60 7,988.70 80 Gun 19 21.08 7,998.70 8,019.84 811 puritan 18 2018' 8,019.64 8.040.00 19.5 It top darn f 79 ____IL___ ILM 8,040 X 5.4.=2 (Gun PI .1w) -TN. 5,,43..K: 5.0»:.00- puncher 2 • (Gun Pu allur) 1E 2'.00 3,06r0C 6.033.08 - puncher 2 Wank(Gun Puwrrrt 15 2'.08 5,,63_ 3.14:.15 puncher 2 84 (Gun Piawu.) 14 2-.08 3,104'6 5.125.24 puncher 2 3,125.24 E,1u..00 8,140.00 8,146.32 5.5 t bola i 1Q 23 r is r. •. . _.4 8] 11 21.06 8,167.40 8,180.48 8) II 21.06 8.188.48 8209.56 8] 8 20.44 8209.56 8230.00 83 ac .ase 3,Dire.'xr 7+Qj-s 18224_ 32.37.CC COIL TBG DEPTH . 734.18 Ewa ARytr, L,....4.r.': 031.11..: . '149E1 DOD r4 are rete eray Cy ell Ixaocr See at»lcnal hwr clout far pnyoical . hnllarwee T Bodoni IIID rank Het Loaded We thin*i GJr Ptr ec -` Elank ITory 7�5E 7,63[.00 _ Pil<8afy Lca3 c C-u--. I Loedad 7,650.00 7,800.00 110.00 tI D/LOotle=,_u--15 5a9. 7,800.00 7.8`4.00 Eta]] eclltun Gui-1 2 Loyd 7,650.00 6,040.00 150.00 Bank 8,040.00 E,14C.00 1CO'l] 3 Loafed 5,148.00 8230.00 ' 59.04 5x11-.4-1 sat c'gu-s 3,233.00 6.412.21 ,1 E22. RUN 1 UPPER To�!Loaaea 390.00 7s;s,bark 335.68 7C41.1 Ger.Lenp!rr 72_.68 Tool lrhawmberger BHA Lang!! 73418 FL Prepared B, Revered Br. C,ert Rezresentabve J1o:P-CP•fAP-CSL Scot after N ltot&Earstran Conrad Perry' Re ticr_NCA1?-13-Dec-CT Cyt Schlumberger Tubing Conveyed Perforating Client Wee M Fee Dae _ns CINGSA CLL 2 SLB 1 - tiylal 1 5 X12 —. lap.laaPJ CouxofEnvy:—11 Deectipoon Gun 0 Len Top Eiottorn Gun SRN Umar set or gins BHA 2 55280 7.756.6E 6,306.48 eFtre alma head 1252 8,309-4E E,322O0 11.111 8,322CC E,33C.0O 8.330.00 8,343.03 125 ft bottom t4 IMM 51 Gun 7 21.08 8,343-08 8,364.16 80 Gun 6 21.08 8,364.16 8,385.24 60 Gun 5 21.06 8,385-24 8,4116.32 ea Gun 4 21.06 8,406.32 8,427.40 80 Gun 3 21.06 8,427.40 8,448.48 80 Gun 2 21.06 8,448.48 8,469.56 80 Gun 1 20.44 8,449.5€ 8,450.04 80 Gaon nos! o.88 8,490.00 MES5 1_-e,, DEPT r- 73418 —av4,.rjn r.v... 161,1 Nott's.3e refe-ec i Chvia locaflor se€abe:o13 P3r1dout far pm1i6lca1 tengthe Partial)L:alec CAI--1 Intervale Too ISD Bottom I ) Nat Blank Net Loaded eDf F UWE.<Girl-5 Jc -set.N 'ts 7,75,5.6E E.33C.0O 573.32 Bottom Gun-1 1 Loaded 8,330.00 8,430.00 164.00 - RUN 1 1300,10IUl�ii TOM! aa K 170.42 T�t3�B:ar.K 57322 c,ta}Gun Lane`s: 32.3+ Total Schlumberger BHA Lenge 734.18 Ft Prepared By -4errsertaeti'e 02C.P7CP.'22--054 5cc'Shier Mad S]:rnr Ccr =en-,. Re.fstorc AKA1A-IS-Derr .fir • Cook Inlet Naturae Gas Cook Inlet Natural Gas Storage Alaska,LLC 3000 Spenard Road PO Box 190989 S TORA Anchorage,AK 99519-0989 Main:907-334-7980 Fax:907-334-7671 Q$ a www.cingsa.com January 24,2012 RECEIVED Alaska Oil and Gas Conservation Commission JAN 2 4 2012 333 West 7th Avenue, Suite 100 Anchorage,AK 99501 Masks Di1&Gas Cans.Commission Re: CLU Storage 2 Application for Sundry Approvals Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA)is requesting Sundry Approval to perforate and clean up CLU Storage 2. The well was suspended on November 11th,2011 pending Coil Tubing perforating. There are currently no open perforations in the well and 8.6 KCL brine was left in the 7"tubing string. The tubing was tested to 3,000 psi. CINGSA proposes to rig up a 2 3/8"coil tubing unit and well test equipment on location January 29th, 2012. The operations as described in the attached outline well procedures will take place in three phases. First a correlation run will be made with coil and a Gr/CCL memory log to ensure proper depths. Second, a series of coil conveyed perforating runs will be made. Perforating will take place overbalanced.The current expected BHP is 380 psi,however,virgin pressure pockets may be expected up to the datum pressure of 2206 psi. A viscous polymer pill was left in the liner to inhibit losses. The final phase will be well clean. Coil will be run in hole to bottom while displacing the brine with nitrogen.The well will be flowed back via a choke manifold to a P tank. Fluids will be recovered in a frac tank and gas will be either flared or vented through a flare stack. The well flow is not expected to last more than 4 hours after the brine is off the perforations. The return gas will be measured via a turbine meter for relative volumes. CINGSA does not consider this well clean up procedure a well test. If you have any questions or require additional information,please contact Tom Arminski at 907 334-7743 or email to tom.arminski(c enstarnaturalgas:com. Sincerely, & Like„ Q aAi M. Colleen Starring Vice President Enclosure as stated Page 1 of 1 • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday, January 26, 2012 4:36 PM To: 'cperry@att.net' Subject: RE: CLU Storage 2 Sundry Application Package 1-23-12a.docx No issues.. the CBL looks good above that depth. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Conrad Perry [mailto:cperry@att.net] Sent: Thursday, January 26, 2012 4:30 PM To: Schwartz, Guy L (DOA) Subject: RE: CLU Storage 2 Sundry Application Package 1-23-12a.docx yes, we covered up a decent section of the Sterling Cl sand there. If you see a problem let me know. I believe there is another well in the same boat also. conrad From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Thursday, January 26, 2012 4:01 PM To: cperry@att.net Subject: RE: CLU Storage 2 Sundry Application Package 1-23-12a.docx Conrad, I was reviewing and noticed that the program calls for perforating across the liner lap (7 X 9 5/8") . Is that the intent?? Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Conrad Perry [mailto:cperry©att.net] Sent: Tuesday, January 24, 2012 7:01 AM To: Schwartz, Guy L (DOA); Maunder, Thomas E (DOA) Subject: CLU Storage 2 Sundry Application Package 1-23-12a.docx Preview copy of the next Sundry request for CINGSA. The official copy should be delivered this afternoon. conrad 1/26/2012 • Page 1 of 1 Schwartz, Guy L (DOA) From: Conrad Perry [cperry@att.net] Sent: Thursday, January 26, 2012 4:34 PM To: Schwartz, Guy L (DOA) Cc: 'Richard Gentges' Subject: RE: CLU Storage 2 Sundry Application Package 1-23-12a.docx No its correct, in the pre perf meeting we had, Schlumberger wanted to go to 4,500 psi so they can activate the firing head with some cushion. conrad From: Schwartz, Guy L(DOA)[mailto:guy.schwartz@alaska.gov] Sent: Thursday, January 26, 2012 4:07 PM To: cperry@att.net Subject: RE: CLU Storage 2 Sundry Application Package 1-23-12a.docx You also have the BOP test pressure at 4500 psi. Is that a typo? Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Schwartz, Guy L (DOA) Sent: Thursday, January 26, 2012 4:01 PM To: 'cperry@att.net Subject: RE: CLU Storage 2 Sundry Application Package 1-23-12a.docx Conrad, I was reviewing and noticed that the program calls for perforating across the liner lap (7 X 9 5/8") . Is that the intent?? Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Conrad Perry [mailto:cperry@att.net] Sent: Tuesday, January 24, 2012 7:01 AM To: Schwartz, Guy L (DOA); Maunder, Thomas E (DOA) Subject: CLU Storage 2 Sundry Application Package 1-23-12a.docx Preview copy of the next Sundry request for CINGSA. The official copy should be delivered this afternoon. conrad 1/26/2012 STATE OF ALASKA l� l ALASKA.__AND GAS CONSERVATION COMMISSI. _ �,, ' WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a.Well Status: Oil❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑ Suspended El lb.Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory ❑ GINJ ❑ WINJ❑ WAG ❑ WDSPL❑ No.of Completions: Service Q Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number. Cook Inlet Natural Gas Alaska,LLC Aband.:11/20/2011 211-135 3.Address: 6.Date Spudded: 13.API Number: P.O.Box 190989,Anchorage,AK 99519 10/30/2011 50-133205990000 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 570'FNL 1763 FEL SEC.9 T5N R11W 11/13/2011 s ivk to\AL CLU Storage 2 Top of Productive Horizon: 7,541'MD/4914'TVD 8.KB(ft above MSL): .5' 15.Field/Pool(s): 2246'FNL 1184'FEL SEC.8 T5N R11W GL(ft above MSL): 33' Cannery Loop/Sterling C pool Total Depth: 8,577'MD/5,110'TVD 9.Plug Back Depth(MD+TVD): 2413'FNL 2189 FEL SEC.8 T5N R11W 8495'/5,095' 4b.Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface: x- 281845.28 y- 2392982.6 Zone- 4 8,577'/5,110' ADL 391627 TPI: x- N/A P. Zone- 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 276105.297 y- 2391237.391 Zone- 4 179'/179' ADL 230925 18.Directional Survey: Yes L] No (J 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) N/A 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: GRAM,CALM,RPC-SHM-SLM-CLM; BDCM,NPCKSM,DPEM-8 1/2"only N/A 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" 133 X56 23 117.5 23 117.5 Driven N/A 13 3/8" 68 J-55 22 2,719 22 2,414 16" 719sx lead/291 sx tail 9 5/8" 40 L-80 20.5 7,746 20.5 4,955 12 1/4" Stage 1-548 lead,205 sx tail Stage 2 495 sx DV @3,483'MI 7" 26 L-80 7,604 8,575 4,928 5,110 81/2" 183 sx 24.Open to production or injection? Yes❑ NoL If Yes,list each 25. TUBING RECORD interval open(MD+TVD of Top&Bottom;Perforation Size and Number): SIZE DEPTH SET(MD) PACKER SET(MD/TVD) 7" 7,604 7,604/4,928 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. CANPLET1014 DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 1 .1 F i L , 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period -► Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate -0 28. CORE DATA Conventional Core(s)Acquired? Yes ❑ No❑ Sidewall Cores Acquired? Yes ❑ No❑ 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. RECEIVED DEC 202011 RBDMS DEC 2 2 201fArl1 'Alaska Oil &Gas Cons. Conmissir Anagrapa Form 10-407 Revised 12/2009 CONTINUED ON REVERSE 0`lc Submit original only 6 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ❑ Yes 0 No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if Permafrost-Top needed,and submit detailed test information per 20 AAC 25.071. Permafrost-Base B5 Coal 7501' 4905' Sterling Cl 7541' 4914' Sterling C2 8262' 5052' Formation at total depth: Sterling C2 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: M, 5-1'Gr rri eg Title: Signature: vi?. �,��� � � �/ Phone: 3 3"F7 'i `7 Date: /a-1/c/l 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 1b: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other.Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced,showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 12/2009 Cook Inlet NUIUTUJ:GUS Cook Inlet Natural Gas Storage Alaska,LLC 3000 Spenard Road PO Box 190989 STORAQ Main:907- 4-K 99519 0989 Main:907-334-7980 $ Q Fax:907-334-7671 ,..C,..- www.cm gsa.corn December 19, 2011 RECEIVED DEC 2 0 2011 Alaska Oil & Gas Conservation Commission 333 W. 7t'Avenue, Suite 100 'klaska Oil Gas Cons.ConiTh$SIo1F Anchorage, Alaska 99501 Am:Image Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Records and Reports Information Acquired from Operations Well: CLU Storage 2 In accordance with 20 AAC 25.070(3), CINGSA hereby submits the records and reports related to drilling of its well, CLU Storage 2. Thank you and if you have any questions, please do not hesitate to contact Tom Arminski at 907 334-7743 or tom.arminski@enstarnaturalgas.com. Sincerely, �� a�pppp � �Q /i'G• 6Y—icGsL P M Colleen Starring Vice President Enclosure as stated CLU Storage 2 - Well Suspension Report Transmittal Hard Copies 1. CINGSA CLU Storage 2 Well Suspension Report Transmittal Notice 2. AOGCC Well Completion or Recompletion Report and Log Form 10-407 3. Daily Drilling Reports 4. Mud Recap 5. Directional Report including surveys, plot and section views,and Bit Record 6. Cementing Recap 7. Well Schematic 8. CANRIG Mudlogging Tranmittal 9. CINGSA Well B(CLU Storage 4)AS BUILT Electronic Copies (thumb drive or CD) 1. CLU Storage 2-Daily Drilling Report-checked.pdf 2. CLU Storage 2- 11-20-2011 Completion Schematic.pdf 3. CLU Storage 2 Directional End of Well Report.pdf 4. CINGSA CLU Storage 2 Cementing Summary.pdf 5. CLU Storage 2-IFE Recap CLU#4- Final.pdf 6. CLU Storage 2 NAD27 Directional Data File.xlsx 7. CLU Storage 2 Certified Location As Built 8. CLU Storage 2 Certified BHL As Built CINGSA CLU Storage 2 Current Completion Schematic FMC Wellhead- 13 5/8" 5000#Multibowl 11/20/2011 FMC Tree- 7" 5000# complete with SSV 4 r''.41, tIN 4.,1 4,-,., 20" 133#X56 driven to 117.5'TVD/117.5'MD 1' 1' A. ° 4 ,4 0Al2 7"Halliburton Wireline Retrievable SSSV @ 179'TVD/179'MD t+ is,{� ggwo�r i y. .1 A 444 .4 41 .:' +'fir ,��,r 'fit 13 3/8" 68#755 BTC Surface Casing @ 2,414'TVD/2719'MD 16"hole/Cemented to Surface w ,"3 3 Davis Lynch DV Collar @ 3,483' SA ,.A 1 414. t^ 7"26#L80 Vam Top Tubing 611 Iv 1 a a ., to 1' 7"x 9 5/8"Baker ZXP Liner Top Packer INd ".1 with 10' seal bore @ 4,928'TVD/7,604'MD r7� , i ,r e 4 +!.1 �`, 9 5/8"40# L80 BTC Intermediate Casing @ 4,955'TVD/7,746'MD 12 1/4" hole/Cemented to Surface 0 os Not Perforated IIII E 7"26#L80 Vam Top Production Liner from 4,928'TVD/7,604'MD TOP to 5,110' TVD/8,575' MD/Cemented 5,110'TVD/8,577'MDTD 8 1/2"hole \ ` , ‘, N s \,, ' \ ‘\ s, \ SECTION 4 T5N R11W SECTION LINE ',. '*�` \ 's S4 S3 SECTION 9 T5N R11W NOT TO SCALE • --`---- - ` ' ` `, ', \ S9 S10 TRACT E KN 2005-122 CITY OF KENAI ` `{ \ '{ 1 I ill \ TRACT F f I.-Z I , y\ ``{ KN 2005-122 fi u_ ;' ' STATE OF ALASKA CINGSA 1 1` � `u' o o i 00 DRILL PAD {� `1 '�o 17-F- LU 0 s-f)\ \ \ (0 Z 1 { 1 { '', \ \ % /7 \ 1 . 1 1763'—,--2,1 1' —�- N----,• FEL •® CINGSA ELL'B" {1 ' W 1 \ , SURFACE LOCATION ` 1 • { ` NAD 27 ASP ZONE 4 1 { ® GRID N:2392982.60 ` GRID E:281845.28 { LATITUDE:60°32'40.4823" '1{1 ''ll 1 `, ® LONGITUDE:-151°12'42.232 ELEV:32.95 - { { 1 1 1 R TA L. J , . z { 1 1 > < I ' 1 1 2 OF U I. \ W W . - N N . 1 1 1 1 { I \ „_-..„. ,, I ' 1 { 1 • 1 1 I 1 { 1 I I 1 { / \ SURVEY CONTROL 1)BASIS OF GEODETIC CONTROL AND NAD83 POSITION (EPOCH 2003)IS STATE OF ALASKA DEPARTMENT OF ..=_=-.--_-=—.111111N TRANSPORTATION&PUBLIC FACILITIES SURVEY ,e___ CONTROL AKSAS PROJECT NO.58703 BENCHMARK 601 ALASKA STATE PLANE COORDINATES(ASP)ZONE 4 ARE: N O R TH N=2393464.742 I E=1422055.815 '-....( 2)BASIS OF VERTICAL CONTROL IS ADOT BM 601 LOCATED SCALE AT BRIDGE ACCESS RD.BEAVER LOOP RD.INTERSECTION 0 150 300 \ ELEV. :42.20 FT.NAVD88. I ( FEET 1I REVISION: - Cook Inlet Natural Gas CINGSA WELL"B” DATE 8/10/11 P.O. BOX 190288 PROJECT STORAGE AS-BUILT WELL SURFACE DRAWN BY: BGE ANCHORAGE, AK 99519 LOCATION DIAGRAM NAD 27 SCALE: 1"=100' PROJECT NO. 103049 4) ENGINEERING/MAPPING f SURVEI'ING/TESTING LOCATION SEC. 9 T5N R11W BOOK NO. - SHEET Co UuL41nq Inc P.O.BOX 488 SOLDOTN4 AK 99899 VOICE:(907)283-4218 FAX(907)283-3285 EMAIL: SSMCUWE@MCIAFECQCOM SEWARD MERIDIAN,ALASKA 3 of 6 1-_ SECTION LINE SECTION 5 T5N R11W 5t4 SECTION 8 T5N R11W 8 9 • 3 Z IZ m•a) O IO C) 0 W W J I<)J N LL Z u_ TOP OF STERLING C NAD 27 ASP ZONE 4 GRID N:2391382.213 GRID E:277112.091 LATITUDE:60°32'23.856" LONGITUDE:-151°14'16.250" 1184' / FEL TD 2189' ' NAD 27 ASP ZONE 4 FEL GRID N:2391237.391 GRID E:276105.297 LATITUDE:60°3222.244" LONGITUDE:-151°14'36.319" SURVEY CONTROL 1)BASIS OF GEODETIC CONTROL AND NAD83 POSITION (EPOCH 2003)IS STATE OF ALASKA DEPARTMENT OF TRANSPORTATION&PUBLIC FACILITIES SURVEY NORTH CONTROL AKSAS PROJECT NO.58703 BENCHMARK 601 ALASKA STATE PLANE COORDINATES(ASP)ZONE 4 ARE: N=2393464.742 E= 1422055.815 SCALE 2)BASIS OF VERTICAL CONTROL IS ADOT BM 601 LOCATED 0 500 1000 AT BRIDGE ACCESS RD. BEAVER LOOP RD.INTERSECTION II I FEET ELEV.:42.20 FT.NAVD88. REVISION: 1 Cook Inlet Natural Comas CINGSA CLU STORAGE 2 DATE: 12/13/11 STORAP.O. BOX 190288 PROJECT o ,` ` ANCHORAGE, AK 99519 ACTUAL LOCATIONS DRAWN BY: BOB SURFACE LOCATION DIAGRAM NAD 27 SCALE: 1"=500' PROJECT NO. 103049 BOOK NO. - ENGINEERING/MAPPING/SURVEYING/TESTING LOCATION Consulting Inc P.O.BOX 468 SOLDOTNA,AK.99669 SEC. 8 T5N R11W SHEET VOICE:(907)283-4218 FAX:(907)283-3265 EMAIL:SAMCLANE@MCLANECG.COM SEWARD MERIDIAN, ALASKA 1 OF 1 L • • a CAN411i1G 301 EAST 92"AVENUE,SUITE 2•ANCHORAGE,ALASKA 99515•(907)561-2465•FAX(907)561-2474 November 28, 2011 C111107 Ms. Christine Mahnken AOGCC 333 West 7th Avenue Anchorage AK 99501 Re: Final DML Color Log Prints, Well Reports and Digital Data: CINGSA, CLU Storage 2, Kenai Borough,Alaska Dear Christine: Enclosed with this letter are the Final DML Color Formation logs for the recently drilled CINGSA CLU Storage 2 well. The following data and corresponding number of copies is included as per your instructions. CLU Storage 2 Description Standard Digital Formation Log 2"=100' MD(Color Prints) 1 Standard Digital Formation Log 2"=100'TVD(Color Prints) 1 LWD Lithology Log 2"=100' MD(Color Prints) 1 LWD Lithology Log 2"=100'ND(Color Prints) 1 Drilling Dynamics Log 2"= 100' MD(Color Prints) 1 Drilling Dynamics Log 2"= 100'TVD(Color Prints) 1 Final Well Reports 1 Final Digital Data on CD ROM (with TIFF Files) 1 Most sincerely, ames R. Carson Alaska Division Manager Canrig Drilling Technology, Ltd. Received by: Si.na - 40;. Title Date RECEIVED NOV 3 U 2011 Alaska Us& Gas Conss.Comminkle Anchorage AANK3 IM".I.,xo Tprnpio axa Lm. 301 EAST 92"AVENUE,SUITE 2•ANCHORAGE,Au6RA 99515•(907)561.2405•FAX(907)501-2474 November 28, 2011 C1111008 Mr. William C. Barron - Director Department of Natural Resources— Division of Oil and Gas 550 West 7th Avenue Anchorage AK 99501 Re: Final DML Color Log Prints, Well Reports and Digital Data: CINGSA, CLU Storage 2, Kenai Borough, Alaska Dear Mr. Barron: Enclosed with this letter are the Final DML Color Formation logs for the recently drilled CINGSA CLU Storage 2 well. The following data and corresponding number of copies is included as per your instructions. CLU Storage 2 Description Standard Digital Formation Log 2"=100'MD(Color Prints) 1 Standard Digital Formation Log 2"=100'ND(Color Prints) 1 LWD Lithology Log 2"=100'MD(Color Prints) 1 LWD Lithology Log 2"=100'ND(Color Prints) 1 Drilling Dynamics Log 2"= 100'MD(Color Prints) 1 Drilling Dynamics Log 2"= 100'TVD(Color Prints) 1 Final Well Reports 1 Final Digital Data on CD ROM (with TIFF Files) 1 Most sincerely, )C‘Ti4stag.. James R. Carson Alaska Division Manager Canrig Drilling Technology, Ltd. Received by: 674- Asci. D l/ Si ature Title Dat Page 1 of 1 Regg, James B (DOA) From: Crisp, John H (DOA) PT-6 2 H (3J Sent: Wednesday, November 16, 2011 12:47 PM G' (..--,( 5— 2— To: Regg, James B (DOA) Cc: DOA AOGCC Prudhoe Bay Subject: CINGSA CLU #2 5" I received a page from a fellow named Steve Ratcliff yast night about 2200 hrs. He stated that he was giving a 24 hour notice for BOP test CINGSA CLU 3 It took me about 30 minutes to call the number back that he left&of course I had to leave a message. 398-3156. He paged me about 1200 hrs today & left a phone number of 907 230-9902. He said that they had run liner&were picking up a mill for dressing liner I guess. He asked if I wanted him to perform a BOP test. I didn't quite understand what he was saying so I requested he ask me a question so we could get on the same page. He asked if they could finish their well & not perform weekly BOP test. Told him that was definitely a question & I told him that I had no idea what he could do with permission from AOGCC Town but I could not&would not grant extension or WW. My concern was that he should have followed the guidance document for BOP test contact from our web site &that contact was not followed last night when he paged. He said their phones were out after he paged me last night. I don't know about this boy. �--- Best I can do from where I was. Just got a call from Joe Polya PNR ODSN 26. He sta -. hat they had just performed DP maintenance & bi weekly BOP test&that their mud weight wa t due to barite sag &they were RIH &shut the well in @ 4300' with TD of 10,000'. I asked him i ey knew of the Secondary well control equipment usage document required for hard copy no ' ' ation. He did not know, I told him to find it on the web site &send it in. At least they are not arroga. -nough to just circulate at 4300'with the well wide open sag or no sag. had WW their bi-weekly :e• test. V C $ CteLu i se le-Ce-i 9 &Y -(est ft /)J JOa rs /ô- O - t&ty) ss of i z-( ,c , -rote( 4 kitece a,4, C/Lec w;,s (J 7 2 r Cep(jc iy,fc)s(s I't 11(14''1/! 11/16/2011 C" 'GSA - DAILY DRILLING REPORT Date: 10/24/2011 Well Name _U Storage 2 BHA#: - DSM Days: John Nicholson Current Depth: 97' Location: Kenai,AK Target 2713' Cell Phone: (907)299-4306 Depth: ig Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Contractor: Nabors Alaska-Rig 105 E N DSM: Stephen Ratcliff Days Since 0 Present Rig Move Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Spud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV/0! #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE Conductor: 20" 133# X-56 Welded 97' N/A July Surface: Intermediate Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: (MUD ADDITIVES: I Daily 'Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT - GEL(50 lb bag) 24 24 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS - S.ASH(50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600/R300 - CAUSTIC 0 - STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 - LOTORQ 0 SPM - SPM - R6/R3 ASPHASOL SUPREME 0 GPS - GPS - PV - CONQOR 404 0 GPM - GPM - YP - SODIUM METABISULFITE 0 PSI - PSI - GELS - FLOWZAN 0 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS - PAC 0 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT - CF-DESCO II 0 AVDP: AVDP: SOLIDS - MYACIDE GA25 0 AVDC: AVDC: OIL/WATER - SCREEENKLEEN 0 AVDC: AVDC: SAND - KLA-GARD 0 DRILL STRING&HYDRAULICS PH - POTASSIUM CHLORIDE 0 STRING WT. - WOB - Pf/Mf - SAFE-CARB 40 0 PICK UP RPM - CHLORIDES - SODIUM BICARBONATE 0 SLACK OFF - TFA - CA - BARITE 0 MAX PULL HSP - VOL.PIT-(BBL) - LIQUIDS 0 DPOD - PRESS DROP - HOLE-(BBL) - SOLIDS (BBLS hauled by AIMM) 0 DCOD - JET VEL - API SCREEN - Daily Mud Cum. 24 24 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish j Hours I Description IDetail I Daily I Cumulative 6:00 18:00 12.00 Rig down and prep for move to GS-2 well.Secure bop RU/RD 24.00 24.00 cranes,remove choke line from cellar.Crane down wind Drilling walls from rig floor.Blow down boiler.R/d kelly hose and Service/Repair Rig cement line.Remove service loop from top drive.R/D top Surveys drive.Start R/D hp mud lines and innerconnects between Trips modules.Crane down top drive.Prep mast for scope down. Change BHA 18:00 6:00 12.00 Unplug electrical from derrick. Remove mud lines and Casing Crew dresser sleeves.Prep to scope down derrick. R/D lines in Cementing Crew pits. Split pit modules. Move rig fuel tank. Prep and Logging remove derrick board. Scope down derrick and remove NU/ND Test sections. Remove shaker and centrifuge sections. DST/Core Well Control WOO P&A Safety Meetings Drilling Cement Circ/Other 24.00 TOTAL 24.00 24.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 1 I I I 0.00 20.00 3 0.00 4 0.00 5 0.00 60.00 10 #REF! 11 #REF! BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No Accidents or Near Misses. Diesel on Location 2,250 Diesel Used Last 24 219 Diesel Received TOTAL DIESEL 2,031 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 AIMM Vacuum Truck 2 12 24 PRA DSM 1 12 12 0 PRA Safety 0 2 0 0 Peak Rig Move 12 12 144 0 CINGSA Conrad/Rick 1 12 12 0 0 0 0 0 0 - TOTAL COUNT 40 TOTAL MAN HOURS 492 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT r- 'GSA - DAILY DRILLING REPORT Date: 10/26/2011 Well Name _U Storage 2 BHA#: - DSM Days: John Nicholson Current Depth: 97' Location: Kenai,AK Target 2713' Cell Phone: (907)299-4306 Depth: _ Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Contra tor: Nabors Alaska-Rig 105 E N�ghM Stephen Ratcliff Days Since0 Present Rig Move Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Scud Operation DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV/0! #DIV/0! #DIV/0! CASING I SIZE I WEIGHT 1 GRADE I THREAD I DEPTH 1 CEMENT COMPANY I DATE 1 Conductor: 20" 133# X-56 Welded 97' N/A July Surface: Intermediate Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT - GEL(50 lb bag) 0 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS - S.ASH(50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600/R300 - CAUSTIC 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 - LOTORQ 0 SPM - SPM - R6/R3 - ASPHASOL SUPREME 0 GPS - GPS - PV - CONQOR404 0 GPM - GPM - YP - SODIUM METABISULFITE 0 PSI - PSI - GELS - FLOWZAN 0 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS - PAC 0 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT - CF-DESCO II 0 AVDP: AVDP: SOLIDS - MYACIDE GA25 0 AVDC: AVDC: OIL/WATER - SCREEENKLEEN _ 0 AVDC: AVDC: SAND - KLA-GARD 0 DRILL STRING&HYDRAULICS PH - POTASSIUM CHLORIDE 0 STRING WT. - WOB - `Pf/Mf - SAFE-CARB 40 0 PICK UP - RPM - CHLORIDES - SODIUM BICARBONATE 0 SLACK OFF - TFA - CA - BARITE 0 MAX PULL - HSP - VOL.PIT-(BBL) - LIQUIDS 0 DPOD _ - PRESS DROP - HOLE-(BBL) - SOLIDS (BBLS hauled by AIMM) 0 DCOD - JET VEL - API SCREEN - Daily Mud Cum. 0 0 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description !Detail I Daily I Cumulative 6:00 18:00 12.00 Rig Move:Hang blocks off of crown,remove drilling line RU/RD 24.00 48.00 and spool up on drum( 1300')Remove antifall davits secure Drilling 0.00 bridal lines to A legs.Remove crown section from starting Service/Repair Rig 0.00 section of derrick and set on floor frame.Continue rigging Surveys 0.00 down innerconnects on modules. Crane down starting Trips 0.00 section of derrick.Remove water tank.Crane down Dog Change BHA 0.00 house. Casing Crew 0.00 18:00 6:00 12.00 Move generator/motor houses. Remove VFD house. Move Cementing Crew 0.00 dog houses away from sub base. Pull pump modules and Logging 0.00 final pit module. Take down drilling line and crown sections. NU/ND Test 0.00 Roll out herculite and square up over CLU#2 well. DST/Core 0.00 Rig up rig truck to sub base to move off well. R/D and move Well Control 0.00 sub base. Pick up matting boards and move to new WOO 0.00 location. Set matting boards. Set sub base in place. P&A 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ/Other 0.00 24.00 TOTAL 24.00 48.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH ITOTAL LENGTH 10.00 20.00 3 0.00 40.00 5 0.00 60.00 70.00 8 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No Accidents or Near Misses. Diesel on Location 2,031 Called AOGCC gave 36hr notice for Diverter function test.@06:00 hrs Diesel Used Last 24 258 Diesel Received TOTAL DIESEL 1,773 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL _ COMPANY NOTE COUNT HOURS TOTAL _ Nabors Rig Crew 24 12.5 300 _ 0 PRA DSM 1 12 12 0 PRA Safety 0 2 0 0 Peak Rig Move 12 12 144 0 _ CINGSA Conrad/Rick 1 12 12 _ 0 _ Weaver Bros Move Sub 2 3 6 _ 0 0 0 0 - - TOTAL COUNT 40 TOTAL MAN HOURS' 474 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' . Welded 20"133#X-56 Welded Conductor Pipe RT GSA- DAILY DRILLING REPORT Date: 10/27/2011 Well Name (;LU Storage 2 BHA#: - DSM Days: John Nicholson Current Depth: 97' Location: Kenai,AK Target 2713' Cell Phone: (907)299-4306 , Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Contractoig rNabors Alaska-Rig 105 E NiDSM: Stephen Ratcliff Days Since 0 Present Rig up CLU GS 2 Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Spud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FTIHR #DIV/0! #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor. 20" 133# X-56 Welded 97' _ N/A July Surface: Intermediate Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT - GEL(50 lb bag) 0 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS - S.ASH(50 lb bag) 0 LINER SIZE _ 6 LINER SIZE 6 R600/R300 - CAUSTIC 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 - LOTORQ 0 SPM - SPM - R6/R3 - ASPHASOL SUPREME 0 GPS - GPS - PV - CONQOR 404 0 GPM - GPM - YP - SODIUM METABISULFITE 0 PSI - PSI - GELS - FLOWZAN 0 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS - PAC 0 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT - CF-DESCO II 0 AVDP: AVDP: _ SOLIDS - MYACIDE GA25 0 AVDC: AVDC: - OIL/WATER - SCREEENKLEEN 0 AVDC: AVDC: SAND - KLA-GARD 0 DRILL STRING&HYDRAULICS PH - POTASSIUM CHLORIDE 0 STRING WT. - WOB - Pf/Mf - SAFE-CARB 40 0 PICK UP _ - RPM - CHLORIDES - SODIUM BICARBONATE 0 SLACK OFF - TFA - CA - BARITE 0 MAX PULL _ - HSP - VOL.PIT-(BBL) - LIQUIDS 0 DPOD - PRESS DROP - HOLE-(BBL) - SOLIDS (BBLS hauled by AIMM) 0 DCOD - JET VEL - API SCREEN - Daily Mud Cum. 0 0 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 18:00 12.00 Set crown and rig floor rear frame.Crane in pit section, RU/RD 24.00 72.00 Set inside water tank and lower dog house.Crane up Drilling 0.00 driller side house and drillers dog house.Set mud pump Service/Repair Rig 0.00 manfold unit.Set mud pumps.Set#2 water tank and air Surveys 0.00 compressor unit.Set hallway between mud pumps and Trips 0.00 generator units.Set Generator units 1,2,3,and cold start Change BHA 0.00 module.Start hooking up water,steam,air,and electrical Casing Crew 0.00 innerconnects on rig modules.Set VFD and mcc modules. Cementing Crew 0.00 18:00 Rig up and set breeze way,air compressors,and motor Logging 0.00 complexes. Rig up and set pit modules and continue NU/ND Test 0.00 installing mud lines and electrical components and lines. DST/Core 0.00 Set derrick A Legs. Rig up and set first section of derrick. Well Control _ 0.00 Continue to hook up electrical and mud lines. Install crown WOO 0.00 6:00 12.00 section P&A 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ/Other 0.00 24.00 TOTAL 24.00 72.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH ITOTAL LENGTH 1 0.00 2 0.00 30.00 4 0.00 5 0.00 6 0.00 • 7 _ 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No Accidents or Near Misses. Diesel on Location 1,773 Witness waved for Diverter function test By Log Grimaldi AOGCC 10/26/11 0600hrs. Diesel Used Last 24 109 Diesel Received TOTAL DIESEL 1,664 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 0 PRA DSM 1 12 12 0 PRA Safety 0 2 0 _ 0 • Peak Rig Move 12 12 144 0 CINGSA Conrad/Rick 1 12 12 _ _ 0 Weaver Bros Move Sub 2 3 6 0 - 0 0 0 ,, TOTAL- COUNT 40 TOTAL MAN HOURS 474 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT JGSA - DAILY DRILLING REPORT • Date: 10/28/2011 Well Name CLU Storage 2 BHA#: - DSM Days: John Nicholson Current Depth: 117' Location: Kenai,AK Target 2713' Cell Phone: (907)299-4306 Depth: ig Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Convactor: Nabors Alaska-Rig 105 E DS hM Days Since 0 Present Rig up CLU GS 2 Rig Phone: (907)398-3156 Cell Phone: Soud Ooeration- DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/FIR #DIV/0! • #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: Intermediate Liner _ Tubing MP#1 IPUMP#2 IMUD PROPERTIES: JMUD ADDITIVES: I Daily jCumulative X.IMP MANE Gardner Denver PUMP MANE Gardner Denver WEIGHT - GEL(50 lb bag) 0 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS - S.ASH(50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600/R300 - CAUSTIC 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 - LOTORQ 0 SPM - SPM - R6/R3 - ASPHASOL SUPREME 0 GPS - GPS - PV - CONQOR 404 0 GPM - GPM - YP - SODIUM METABISULFITE 0 PSI - PSI - GELS - FLOWZAN 0 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS - PAC 0 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT - CF-DESCO II 0 AVDP: AVDP: SOLIDS - MYACIDE GA25 0 AVDC: AVDC: OIL/WATER - SCREEENKLEEN 0 AVDC: AVDC: SAND - KLA-GARD 0 DRILL STRING&HYDRAULICS PH - POTASSIUM CHLORIDE 0 STRING WT. - WOB - Pf/Mf - SAFE-CARB 40 0 PICK UP - RPM - CHLORIDES - SODIUM BICARBONATE 0 SLACK OFF - TFA - CA - BARITE 0 MAX PULL - HSP - VOL.PIT-(BBL) - LIQUIDS 0 DPOD - PRESS DROP - HOLE-(BBL) - SOLIDS (BBLS hauled by AIMM) 0 DCOD - JET VEL - API SCREEN - Daily Mud Cum. 0 0 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 Continue with R/U on CLU-2,Run steam and electrical RU/RD 24.00 96.00 innerconnects. P/U and set#2 mast section and scope up Drilling 0.00 •Set Service cabins MI, MWD and Mud loggers units. Rig Service/Repair Rig 0.00 up camrig rig watch and PVT system.Bridal up lower Surveys 0.00 section of mast and raise into position P/U#2 section Trips 0.00 and set on floor and scope up.Pin racking board to derrick Change BHA 0.00 Scope up last section of mast. P/U top drive install in derrick Casing Crew 0.00 Load water tank and fire boilers.Set Gas buster unit. Load Cementing Crew 0.00 rig floor with kelly hose and service loops. Raise front wind Logging - 0.00 walls around sub and over dog houses.Set water well house NU/ND Test 0.00 Continue with installing and hooking up pits and low pressure DST/Core 0.00 mud lines.Set matting boards for pipe shed.Set pipe shed Well Control _ 0.00 6:00 24.00 Fire#2 boiler, Release cranes from rig move at 0600hrs WOO 0.00 P&A 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ/Other 0.00 24.00 TOTAL 24.00 ' 96.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH 'TOTAL LENGTH 10.00 2 0.00 30.00 4 _ 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 • 10 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No Accidents or Near Misses. Diesel on Location 1,664 Witness waved for Diverter function test By Log Grimaldi AOGCC 10/26/11 0600hrs. Diesel Used Last 24 1,270 Continue internal rig up[.Service loop and top drive, Pits are ready to take on water for testing Diesel Received 5,500 Begin function testing of rig systems. TOTAL DIESEL 5,894 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 0 PRA DSM 1 12 12 0 PRA Safety 1 2 2 0 Peak Rig Move 12 12 144 0 CINGSA Conrad/Rick 1 2 2 0 Camrig Rig up 2 10 20 0 Wood Works Set WW unit 2 4 8 0 NOV Supplys 1 1 1 - TOTAL COUNT 43 TOTAL MAN HOURS 489 FROM _ TO LENGTH JOINT DESCRIPTION G/L _ 97' 97' Welded 20" 133#X-56 Welded Conductor Pipe RT •GSA- DAILY DRILLING REPORT • Date: 10/29/2011 Well Name CLU Storage 2 BHA#: - DSM Days: John Nicholson Current Depth: 117' Location: Kenai,AK Target 2713' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Nabors Alaska-Rig 105 E DSM Contractor:ctor: Nights: Days Since 0 Present R/U GS 21 Accept rig 18:00hrs Rig Phone: (907)398-3156 Cell Phone: Spud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV/0! #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE Conductor: 20" 133# X-56 Welded 97' N/A July Surface: Intermediate Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily !Cumulative PUMP MANE Gardner Denver PUMP MANE Gardner Denver WEIGHT - GEL(50 lb bag) 0 PUMP TYPE _ PZ-9 PUMP TYPE PZ-9 FUNNEL VIS - S.ASH(50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600/R300 - CAUSTIC 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/Rt00 - LOTORQ 0 SPM - SPM - R6/R3 - ASPHASOL SUPREME 0 GPS - GPS - PV - CONQOR 404 0 GPM - GPM - YP - SODIUM METABISULFITE 0 PSI - PSI - GELS - FLOWZAN 0 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS - PAC 0 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT - CF-DESCO II 0 AVDP: AVDP: SOLIDS - MYACIDE GA25 0 AVDC: AVDC: OIL/WATER - SCREEENKLEEN 0 AVDC: AVDC: SAND - KLA-GARD 0 DRILL STRING&HYDRAULICS PH - POTASSIUM CHLORIDE 0 STRING WT. - WOB - Pf/Mf - SAFE-GARB 40 0 PICK UP - RPM - CHLORIDES - SODIUM BICARBONATE 0 SLACK OFF - TFA - CA - BARITE 0 MAX PULL - HSP - VOL.PIT-(BBL) - LIQUIDS 0 DPOD - PRESS DROP - HOLE-(BBL) - SOLIDS (BBLS hauled by AIMM) 23 23 DCOD - JET VEL - API SCREEN 2-165 2-100 Daily Mud Cum. 23 23 ACTIVITY SUMMARY I TIME SUMMARY Start j Finish I Hours 1 Description (Detail I Daily I Cumulative 6:00 Install service loop for top drive.Make up Kelly hose and RU/RD 12.00 108.00 cement line.R/U heater to pipe shed and install stairs. Drilling 0.00 Rig up Cement unit.Install bails and elevator.Plug in MI Service/Repair Rig 0.00 and MWD cabins Continue to work on top drive electrical Surveys 0.00 controls.Make up Kelly hose to goose neck on stand pipe. Trips 0.00 complete berming of rig and cuttings tank areas.Function Change BHA 0.00 test mud pumps,low pressure mud system.Fill pits w/50 Casing Crew 0.00 bbls of H2o check for leaks Ok Cementing Crew 0.00 18:00 12.00 Accept rig from moving/mob to operating at 18:00hrs Logging 0.00 18:00 _ Nipple up diverter system.Install bag,Knife valve and NU/ND Test 6.00 6.00 0:00 6.00 extension line.M/U koomey lines to valve and bag DST/Core 0.00 0:00 Load pipe shed with 6000'5"drill pipe.Clean out mud pump Well Control 0.00 suctions(from CLU-4)Run escape line from derrick board WOO 0.00 Adjust Kelly hose.Complete tally of Drill pipe in shed. P&A 0.00 Dress out shakers with 2 x 165&2X 100 screens.Begin Safety Meetings 0.00 6:00 6.00 filling Pits with H2o. Drilling Cement 0.00 Circ/Other 6.00 6.00 24.00 ' TOTAL 24.00 120.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN.1 CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 1 _ _ 0.00 2 0.00 3 0.00 4 _ 0.00 5 _ 0.00 6 0.00 BHA TOTAL LENGTH o.00 REMARKS&COMMENTS DIESEL No Accidents or Near Misses. Diesel on Location 5,894 Witness waved for Diverter function test By BOB Noble AOGCC 10/28/11 08:30hrs. Diesel Used Last 24 367 DD tools arrived on location 14:O0hrs.Rig up MWD cabin Begin charges on MWD hands at 00:00hrs Diesel Received TOTAL DIESEL 5,527 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 9 18 PRA DSM 1 12 12 BHI mwd Rig up unit 2 6 12 PRA Safety 1 2 2 AIMM Haul water 1 8 8 Peak Set Well head 2 6 12 BHI DD drillers 1 12 12 CINGSA Conrad/Rick 1 2 2 Swaco De water 2 12 24 Camrig Rig up 2 5 10 Mi 0 SLB Rig up cmt unit 4 8 32 0 NOV Supplys 1 1 1 - TOTAL COUNT 43 TOTAL MAN HOURS 445 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT CINGSA - DAILY DRILLING REPORT Date: 10/30/2011 Well Name CLU Storage 2 BHA#: 1 DSM Days: John Nicholson Current Depth: 117' Location: Kenai,AK Target 2713' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop I Sterling C: Cannery Rig Loop/SAlaska-Rig 105 E DS hM Days Since Present Make up 16"hole section BHA Rig Phone: (907)398-3156 Cell Phone: Soud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 1 16" HCC VM-1 5198829 3x18 1x16 117 #DIV/0! #DIV/0! #DIV/0! CASING I SIZE 1 WEIGHT I GRADE I THREAD I DEPTH 1 CEMENT COMPANY I DATE 1 Conductor: 20" 133# _ X-56 Welded _ 97' N/A July Surface: _ Intermediate Liner Tubing PUMP#1 PUMP#2 (MUD PROPERTIES: MUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.5 8.5 GEL(50 lb bag) 297 297 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 41 41 S.ASH(50 lb bag) 6 6 LINER SIZE 6 LINER SIZE 6 R600/R300 25/16 18/13 CAUSTIC 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 12/10 8/5 LOTORQ 0 SPM - SPM - R6/R3 3/2 3/2 ASPHASOL SUPREME 0 GPS - GPS - PV 9 5 CONQOR 404 0 GPM - GPM - YP 7 8 SODIUM METABISULFITE 0 PSI - PSI - GELS 4/5/7 3/3/3 FLOWZAN 0 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS 14 14 PAC 0 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT 2/ 2/ CF-DESCO II 0 AVDP: AVDP: SOLIDS 2.2 2.2 MYACIDE GA25 2 2 AVDC: AVDC: OIL/WATER /96 /98 SCREEENKLEEN 0 AVDC: AVDC: SAND 0 0 KLA-GARD 0 DRILL STRING&HYDRAULICS ,PH 10 10 POTASSIUM CHLORIDE 0 STRING WT. - WOB - Pf/Mf .50/.60 .50/.60 SAFE-CARB 40 0 PICK UP - RPM - CHLORIDES 400 400 SODIUM BICARBONATE 0 SLACK OFF - TFA - CA 40 40 BARITE 0 MAX PULL - HSP - VOL.PIT-(BBL) 616 616 LIQUIDS 2 2 DPOD - PRESS DROP - HOLE-(BBL) 42 42 SOLIDS (BBLS hauled by AIMM) 23 23 DCOD - JET VEL - API SCREEN 2-165 2-100 Daily Mud Cum. 330 330 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description IDetail I Daily I Cumulative 6:00 Test Gas alarms flow and PVT system for Diverter test RU/RD 108.00 Install 4"ball valves on conductor.Stage BPA behind Drilling 0.00 7:00 1.00 drilling line spool.Install rig floor camers.Test St-80 Service/Repair Rig 3.00 3.00 7:00 Re tighten studs on diverter spool from starting head Surveys 0.00 10:00 3.00 Replace electrical connector on derrick man heater. Trips 14.00 14.00 10:00 PJSM: P/U and drift( 3.052) 5"drill pipe and stand back Change BHA 3.00 3.00 11:30 1.50 in derrick. Casing Crew 0.00 11:30 Function test Diverter system,Test PVT Flow and Gas Cementing Crew 0.00 13:00 1.50 All passed. Logging 0.00 13:00 14:00 1.00 Install new gaskets in diverter line NU/ND Test 0.00 14:00 18:00 _ 4.00 P/U and drift 5"drill pipe and stand back DST/Core 0.00 18:00 18:30 0.50 Calibrate blocks for MWD and Canrig Well Control 0.00 18:30 22:00 3.50 Continue to P/U 5"drill pipe and stand back.Total of 189jts WOO 0.00 22:00 0:00 2.00 P/U drift and stand back 23jts HWDP and jars P&A 0.00 0:00 3:00 _ 3.00 C/O saver sub and grabber die blocks service T/D Safety Meetings 0.00 3:00 6:00 3.00 Make up 16"hole section BHA Scribe motor&MWD Drilling Cement 0.00 Circ/Other 4.00 4.00 24.00 TOTAL 24.00 132.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 2 Motor steerable 1.3deg 6 5/8 Reg 6 5/8 H-90 BHI 8 15.7/8 1.80 28.59 28.59 3 NM Pony Collar 6 5/8 H-90 6 5/8 H-90 BHI 8 1/16 2 13/16 1.78 9.57 38.16 4 NM stab 6 5/8 H-90 6 5/8 H-90 BHI 8 1/8 2 13/16 15.7/8 2.25 4.82 42.98 5 MWD/Gamma 6 5/8 H-90 6 5/8 H-90 BHI 8 2 13/16 33.36 76.34 6 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 7 1/4 2 7/8 3.00 29.59 105.93 7 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 7 1/2 2 7/8 3.22 29.24 135.17 8 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 7 3/4 2 7/8 1.86 29.97 165.14 9 X-Over 6 5/8 H-90 4 1/21F BHI 7 3/4 3 1/2 1.86 167.00 10 4x HWDP 4 1/2IF 4 1/21F NAD 5 3 6.50 118.90 285.90 11 Jars 4 1/21F 4 1/2IF WF 6 3/16 2 3/4 1.69 31.72 317.62 12 19x HWDP 4 1/21F 4 1/21F NAD 5 3 6.50 566.84 884.46 12 884.46 13 884.46 14 _ 884.46 15 884.46 BHA TOTAL LENGTH 884.46 REMARKS&COMMENTS DIESEL No Accidents or Near Misses. Diesel on Location 5,527 Water well operating at 18:30hrs Diesel Used Last 24 747 Diesel Received Swaco Processed total of 971bb1 flo pro mud cleaned down to 9.Oppg TOTAL DIESEL 4,780 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 9 18 PRA DSM 1 12 12 BHI mwd Rig up unit 2 12 24 PRA Safety 1 2 2 AIMM Haul water 1 8 8 Peak _ Set Well head 2 6 12 BHI DD drillers 2 12 24 CINGSA Conrad/Rick 1 2 2 Swaco De water 2 12 _ 24 Camrig Rig up 2 5 10 Mi _ 0 SLB Rig up cmt unit 4 8 32 0 NOV Supplys 1 1 1 - TOTAL COUNT 44 TOTAL MAN HOURS 469 FROM TO LENGTH JOINT DESCRIPTION G/L _ 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT CINGSA - DAILY DRILLING REPORT Date: 10/31/2011 Well Name CLU Storage 2 BHA#: 1 DSM Days: John Nicholson Current Depth: 2131' Location: Kenai,AK Target 2731' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 2013' Field/Pool: Cannery Loop/Sterling C RigNabors Alaska-Rig 105 E DSM Mike Grubb Contractor Nights: Days Since 1 Present Drill Ahead @ 2131' Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 oud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 1 16" HCC VM-1 5198829 3x18 1x16 117 #DIV/0! #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE Conductor: 20" 133# X-56 Welded 97' N/A July Surface: Intermediate Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: 'MUD ADDITIVES: I Daily 'Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.5 8.7 GEL(50 lb bag) 65 362 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 41 61 S.ASH(50 lb bag) 3 9 LINER SIZE 6 LINER SIZE 6 R600/R300 25/16 19/15 CAUSTIC 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 12/10 8/5 LOTORQ 0 SPM 95 SPM 95 R6/R3 3/2 3/2 ASPHASOL SUPREME 0 GPS 3.18 GPS 3.18 PV 9 9 CONQOR 404 0 GPM 302 GPM 302 YP 7 17 SODIUM METABISULFITE 0 PSI 1150 PSI 1150 GELS 4/5/7 6/7/7 FLOWZAN 4 4 BTMS UP MIN 29 BTMS UP MIN 29 API FLUID LOSS 14 14 PAC 0 TOT CIR MIN 75 TOT CIR MIN 75 CAKE APH/HT 2/ 2/ CF-DESCO II 0 AVDP: AVDP: 205.OU SOLIDS 2.2 2 MYACIDE GA25 2 AVDC: _ AVDC: g7.nr OIL/WATER /96 /98 GEL-X 13 13 AVDC: AVDC: SAND 0 TR KLA-GARD 0 DRILL STRING&HYDRAULICS PH 10 10 PORTABLE ARTIC MUD 1 1 STRING WT. 77 WOB 15 Pf/Mf .50/.60 .50/.60 SAFE-CARB 40 0 PICK UP 80 RPM 70 CHLORIDES 400 400 SODIUM BICARBONATE 0 SLACK OFF 77 TFA 0.942 CA 40 40 BARITE 0 MAX PULL 75 HSP 340/26 VOL.PIT-(BBL) 616 644 LIQUIDS 371 373 ECD 9.09 PRESS DROP 7 HOLE-(BBL) 42 42 SOLIDS (BBLS hauled by AIMM) 50 73 DCOD - JET VEL 120/0.06 API SCREEN 3-165 1-105 Daily Mud Cum. 507 837 ACTIVITY SUMMARY li TIME SUMMARY Start I Finish I Hours I Description [Detail I Daily f Cumulative 6:00 8:00 2.00 Test stand pipe manfold 2500psi Fill all surface lines test RU/RD 108.00 8:00 Drill 16"surface hole section F/118-348'up Wt 45k Dn.45k Drilling 21.00 21.00 10:00 2.00 Rot 45k.370/400gpm WOB 10k. Service/Repair Rig 3.00 10:00 11:00 1.00 TOH P/U monels and jars.RIH Surveys 0.00 11:00 12:00 1.00 Drill 16"surface hole section F/348-438'up Wt 45k Dn.45k Trips 1.00 15.00 440gpm 550psi 60rpm ART=1.6hr Change BHA 3.00 12:00 18:00 6.00 Drill 16"surface hole section F/438'-1077'up Wt 67k Dn.67k Casing Crew 0.00 Rt,.Wt 67K 530gpm AST=1.4 Art=2hr ADT=3.6 Cementing Crew 0.00 18:00 0:00 6.00 Drill 16"surface hole section F/1077'-1652"up Wt8Ok Dn75k Logging 0.00 Rt,.Wt 74K 600gpm AST=2.4 Art=l.3hr ADT=3.7 NU/ND Test 2.00 2.00 0:00 6:00 6.00 Drill 16"surface hole section F/1652'-2131'up 80k Dn75k DST/Core 0.00 Rt8Ok tq-4k rpm 80 art-2.6hrs ast-.8 hrs 600gpm 1100psi Well Control 0.00 WOO 0.00 P&A 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ/Other 4.00 24.00 TOTAL 24.00 156.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. .1 GAUGE I NECK I LENGTH ITOTAL LENGTH 2 Motor steerable 1.3deg 6 5/8 Reg 6 5/8 H-90 BHI 8 15.7/8 1.80 28.59 28.59 3 NM Pony Collar 6 5/8 H-90 6 5/8 H-90 BHI 8 1/16 2 13/16 1.78 9.57 38.16 4 NM stab 6 5/8 H-90 6 5/8 H-90 BHI 8 1/8 2 13/16 15.7/8 2.25 4.82 42.98 5 MWD/Gamma 6 5/8 H-90 6 5/8 H-90 BHI 8 2 13/16 33.36 76.34 6 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 7 1/4 2 7/8 3.00 29.59 105.93 7 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 7 1/2 2 7/8 3.22 29.24 135.17 8 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 7 3/4 2 7/8 1.86 29.97 165.14 9 X-Over 6 5/8 H-90 4 1/2IF BHI 7 3/4 3 1/2 1.86 167.00 10 4x HWDP 4 1/21F 4 1/2IF NAD 5 3 6.50 118.90 285.90 11 Jars 4 1/21F 4 1/2IF WF 6 3/16 2 3/4 1.69 31.72 317.62 12 19x HWDP 4 1/21F 4 1/2IF NAD 5 3 6.50 566.84 884.46 12 884.46 13 884.46 14 884.46 15 884.46 BHA TOTAL LENGTH 884.46 REMARKS&COMMENTS DIESEL No Accidents or Near Misses. Diesel on Location 4,780 MW@9.2 @ 06:00 Diesel Used Last 24 1,623 Diverter BOP drill. Diesel Received_ Note: RKB TO GL 20.5' Flow check every connection TOTAL DIESEL 3,157 PERSONNEL ON LOCATION COMPANY NOTE COUNT _ HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors _ Rig Crew 24 12.5 300 MI Mud Eng 2 9 18 PRA DSM 2 12 24 BHI mwd Rig up unit 2 12 24 PRA Safety 1 2 _ 2 AIMM Haul water 1 8 8 0 BHI DD drillers 2 12 24 CINGSA Conrad/Rick 1 2 2 0 Camrig _ Rig up 2 5 _ 10 0 SLB _Rig up cmt unit 4 8 _ 32 0 NOV Supplys 1 1 1 - TOTAL COUNT 41 TOTAL MAN HOURS 445 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' , Welded .20"133#X-56 Welded Conductor Pipe RT ` CINGSA - DAILY DRILLING REPORT Date: 11/1/2011 Well Name CLU Storage 2 BHA#: 1 DSM Days: John Nicholson Current Depth: 2731 Location: Kenai,AK Target 2731' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 718 Field/Pool: Cannery Loop/Sterling C tra Nabors Alaska-Rig 105 E DSM Mike Grubb Contractor: Nights: Days Since2 Present run 13.375 casing Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Spud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 1 16" HCC VM-1 5198829 3x18 1x16 117 2731 2613' -2-w-e-e-2,e-no- 15.5 168.58 #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 J-55 BTC _ Schlumberger Intermediate Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 9.0 GEL(50 lb bag) 5 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 45 52 S.ASH(50 lb bag) 27 36 I LINER SIZE 6 LINER SIZE 6 R600/R300 33/24 44/30 CAUSTIC 0 [[[4 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 20/14 25/18 LOTORQ 0 SPM 95 SPM 95 R6/R3 20/14 10/8 ASPHASOL SUPREME 0 GPS 3.18 GPS 3.18 PV 9 14 CONQOR 404 0 GPM 302 GPM 302 YP 15 16 SODIUM METABISULFITE 0 PSI 1150 PSI 1150 GELS 9/17/20 9/16/22 FLOWZAN 4 4 BTMS UP MIN 29 BTMS UP MIN 29 API FLUID LOSS 10.4 12 PAC 7 7 TOT CIR MIN 75 TOT CIR MIN 75 CAKE APH/HT 2/ 2/ CF-DESCO II 0 AVDP: AVDP: SOLIDS 4 4 MYACIDE GA25 2 AVDC: AVDC: OIL/WATER /96 /96 GEL-X 4 17 AVDC: AVDC: SAND 0 KLA-GARD 0 DRILL STRING&HYDRAULICS PH 9.8 9.7 PORTABLE ARTIC MUD 1 1 STRING WT. 100 WOB 15 Pf/Mf .40/.80 .40/.70 SAFE-GARB 40 0 PICK UP 80 RPM 70 CHLORIDES 500 500 SODIUM BICARBONATE 0 SLACK OFF 75 TFA 0.942 CA 40 40 BARITE 74 74 MAX PULL 75 HSP 340/26 VOL.PIT-(BBL) 644 644 LIQUIDS 349 765 ECD 9.09 PRESS DROP 6 HOLE-(BBL) 42 42 SOLIDS (BBLS hauled by AIMM) 54 127 DCOD - JET VEL 120/0.06 API SCREEN 3-165 1-105 Daily Mud Cum. 525 1400 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 Drill 16"surface hole section F/2131'-2731'up 95k Dn8Ok RU/RD 108.00 Rt87k tq-6k rpm 90 art-2.9hrs ast-.6 hrs 600gpm 1100psi Drilling 7.00 22.50 13:00 7.00 TD 16"surface hole section @ 2731'to fit Casing tally. Service/Repair Rig 3.00 13:00 14:00 1.00 Circulate and condition mud for wiper trip at 2731'630gpm Surveys 0.00 14:00 Monitor well POH SLM(wiper trip)on elevators F-2731'-847' Trips 7.50 22.50 Hole slick no over pulls.No gain loss Ck for swabbing None Change BHA 3.00 16:30 2.50 No correction on SLM Casing Crew 5.00 5.00 16:30 RIH(wiper Trip)F 847'to 2635'wash F-2635'to 2731' Cementing Crew 0.00 18:00 1.50 tag bottom ,(no fill) Logging 0.00 18:00 pump high vis sweep ,circulate hole clean,1350psi@120spm NU/ND Test 2.00 2.00 19:00 1.00 up 100k,do 75k,80 rt DST/Core 0.00 19:00 Pooh F/2731'-2322',check flow,Pump dry job,cont.POOH Well Control 0.00 22:00 3.00 F/2322'T/168' WOO 0.00 22:00 Stand back collars,L/D stabilizer,mud motor and Navi- P&A 0.00 1:00 3.00 Gamma tool,bit,clean and clear floor Safety Meetings 0.00 1:00 2:30 1.50 R/U casing running tools, Drilling Cement 0.00 2:30 6:00 3.50 M/U shoe track,check floats,commence running 13.375 csg Circ/Other 2.50 7.00 24.00 'TOTAL 24.00 173.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN] CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 2 Motor steerable 1.3deg 6 5/8 Reg 6 5/8 H-90 BHI 8 15.7/8 1.80 28.59 28.59 3 NM Pony Collar 6 5/8 H-90 6 5/8 H-90 BHI _ 8 1/16 2 13/16 1.78 9.57 38.16 4 NM stab 6 5/8 H-90 6 5/8 H-90 BHI 8 1/8 2 13/16 15.7/8 2.25 4.82 42.98 5 MWD/Gamma 6 5/8 H-90 6 5/8 H-90 BHI 8 2 13/16 33.36 76.34 6 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 7 1/4 2 7/8 3.00 29.59 105.93 7 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 7 1/2 2 7/8 3.22 29.24 135.17 8 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 7 3/4 2 7/8 1.86 29.97 165.14 9 X-Over 6 5/8 H-90 4 1/21F BHI _ 7 3/4 3 1/2 1.86 167.00 10 4x HWDP 4 1/21F 4 1/21F NAD 5 3 6.50 118.90 285.90 11 Jars 4 1/21F 4 1/21F WF 6 3/16 2 3/4 1.69 31.72 317.62 12 19x HWDP 4 1/21F 4 1/21F NAD 5 3 6.50 566.84 884.46 12 884.46 13 884.46 14 884.46 15 884.46 BHA TOTAL LENGTH 884.46 REMARKS&COMMENTS DIESEL Loader operator moving cuttings bucket contacted bumper on Aimm Vacuum truck and tore it off Diesel on Location 3,157 Diesel Used Last 24 1,868 Diverter BOP drill. Diesel Received, 5,454 Flow check every connection TOTAL DIESE6,743 . PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 9 18 PRA DSM 2 12 24 BHI mwd Rig up unit 2 12 24 PRA Safety 1 2 2 AIMM Haul water 1 8 8 WF casing crew 2 _ 4.5 9 BHI DD drillers 2 12 24 CINGSA Conrad/Rick 1 2 2 0 Camrig Rig up 2 5 10 0 SLB Rig up cmt unit 4 8 32 0 NOV Supplys 1 1 1 - TOTAL COUNT 43 TOTAL MAN HOURS 454 FROM TO LENGTH JOINT _ DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT i CINGSA - DAILY DRILLING REPORT Date: 11/2/2011 Well Name CLU Storage 2 BHA#: 1 DSM Days: John Nicholson Current Depth: 2731 Location: Kenai,AK Target 2731' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Rig Nabors Alaska-Rig 105 E DSM Mike Grubb Contractor: Nights: Days Since . 3 Present N/D Diverter system Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Soud Operation DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 J-55 BTC 2721 Schlumberger 1-Nov Intermediate Liner - Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 9.0 GEL(50 lb bag) 5 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 45 49 S.ASH(50 lb bag) 3 39 LINER SIZE 6 LINER SIZE 6 R600/R300 33/24 43/29 CAUSTIC 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 20/14 24/17 LOTORQ 0 SPM 68 SPM 68 R6/R3 20/14 9/7 ASPHASOL SUPREME 0 GPS 3.18 GPS 3.18 PV 9 14 CONQOR 404 0 GPM 206 GPM 206 YP 15 16 SODIUM METABISULFITE 0 PSI 500 PSI 500 GELS 9/17/20 9/12/15 FLOWZAN 0 4 BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS 10.4 11.8 PAC 0 0 TOT CIR MIN TOT CIR MIN 0 CAKE APH/HT 2/ 2/ CF-DESCO II 20 20 AVDP: AVDP: SOLIDS 4 4 MYACIDE GA25 2 AVDC: AVDC: OIL/WATER /96 /96 GEL-X 0 17 AVDC: AVDC: SAND 0 CITRIC ACID 15 15 DRILL STRING&HYDRAULICS PH 9.8 9.6 PORTABLE ARTIC MUD 1 1 STRING WT. WOB Pf/Mf .40/.80 .40/.70 SAFE-CARB 40 0 PICK UP RPM CHLORIDES 500 500 SODIUM BICARBONATE 20 20 SLACK OFF TFA CA 40 40 BARITE 80 80 MAX PULL HSP VOL.PIT-(BBL) 644 LIQUIDS 217 765 ECD PRESS DROP HOLE-(BBL) 42 380 SOLIDS (BBLS hauled by AIMM) 157 284 DCOD - JET VEL API SCREEN 3-165 1-105 Daily Mud Cum. 518 1614 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 Run 67jts 13 3/8 J-55 68#BTC-modCasing with 28 rigid RU/RD 108.00 10:30 4.50 blade centrailzers.Float collar set at 2675'Float shoe 2719' Drilling 22.50 10:30 11:00 0.50 R/D casing tools,R/U false rotary and base plate Service/Repair Rig 3.00 11:00 14:00 Make up stab in tool and centrailzer on 5"drill pipe RIH Surveys 0.00 3.00 and sting into the float collar at 2677' Trips 8.00 22.50 14:00 14:30 0.50 R/D false rotary R/D flow line. Change BHA 3.00 14:30 Stage circulate start W/1.5bbl min 154psi increase rate to Casing Crew 5.50 5.50 16:00 1.50 5bbl per min W/190psi Continue circulating one bottoms up Cementing Crew 3.00 3.00 16:00 Hold PJSM for cementing procedures. Logging 0.00 Pump 5bbls H2o test lines to 3000psi.Pump 10.2 mud push NU/ND Test 0.00 spacer W/rig pumps At 5bbls per min. ,Pump 309 bbls lead, DST/Core 0.00 pump 63 bbls tail cement,clear lines with 5 bbls water,dis- Well Control 0.00 place W/45.5 bbls,check floats,CIP @19:00, 100%returns WOC 3.50 3.50 19:00 3.00 I(app. 120bbls excess cement returned) P&A 0.00 19:00 21:00 3.00 Pull up 30'circ csg&ds+,drop wiper ball,circ.DS volume Safety Meetings 0.00 21:00 2:30 4.50 POOH with inner string and stab in tool Drilling Cement 0.00 2:30 6:00 3.50 N/D diverter,cleaning pits,WOC Circ/Other 4.00 7.00 24.00 TOTAL 24.00 178.00 ' BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH 'TOTAL LENGTH 2 . 3 - 4 •5 6 7 . 8 - 9 . • 10 11 - 12 12 13 14 - 15 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No accidents-No spills-No near misses Diesel on Location 6,743 Jim Regg from AOGCC called p15:30 11-1-11 waived witness Diesel Used Last 24 917 Lead cement 12ppg 309bbis Diesel Received 0 Tail cement 15.4ppg 63bbls TOTAL DIESEL 5,826 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 9 18 PRA DSM 2 12 24 BHI mwd Rig up unit 2 12 24 PRA Safety 1 2 2 AIMM Haul water 1 8 8 WF casing crew 2 4.5 9 BHI DD drillers 2 12 _ 24 CINGSA Conrad/Rick 1 2 2 0 Camrig Rig up 2 5 10 0 SLB Rig up cmt unit 4 8 32 0 NOV Supplys 1 1 1 - TOTAL COUNT 43 TOTAL MAN HOURS 454 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') CINGSA - DAILY DRILLING REPORT Date: 11/3/2011 Well Name CLU Storage 2 BHA#: 2 DSM Days:, John Nicholson Current Depth: 2731 Location: Kenai,AK Target 2731' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Contractor:ig Nabors Alaska-Rig 105 E DSM: Mike Grubb Days Since4 Present Make up 12.25 BHA Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Scud ' Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FTIHR 2 121/4 HCC OD-605X 7022287 9X11 2731 #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 J-55 BTC 2721 Schlumberger 1-Nov Intermediate Liner Tubing PUMP#1 IPUMP#2 'MUD PROPERTIES: IMUD ADDITIVES: I Daily 'Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 48 _S.ASH(50 lb bag) 39 LINER SIZE 6 LINER SIZE 6 R600/R300 42/28 CAUSTIC _ 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 24/16 LOTORQ _ 0 SPM 68 SPM 68 R6/R3 10/8 ASPHASOL SUPREME 0 GPS 3.18 GPS 3.18 PV 14 CONQOR 404 0 GPM 206 GPM 206 YP 14 SODIUM METABISULFITE 0 PSI 500 PSI 500 GELS 10/12/15 FLOWZAN 4 BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS 11.2 PAC 0 TOT CIR MIN TOT CIR MIN 0 CAKE APH/HT 2/ CF-DESCO II 20 AVDP: AVDP: SOLIDS 4 MYACIDE GA25 2 AVDC: AVDC: OIL/WATER GEL-X 17 AVDC: AVDC: SAND CITRIC ACID 15 DRILL STRING&HYDRAULICS PH 9.6 PORTABLE ARTIC MUD 1 2 STRING WT. WOB Pf/Mf .40/.70 SAFE-CARB 40 0 PICKUP RPM CHLORIDES 500 _SODIUM BICARBONATE 20 • SLACK OFF TFA CA BARITE 80 MAX PULL HSP VOL.PIT-(BBL) LIQUIDS 218 983 ECD PRESS DROP HOLE-(BBL) 380 SOLIDS (BBLS hauled by AIMM) 58 342 DCOD - JET VEL API SCREEN 3-165 1-105 Daily Mud Cum. 277 1891 ACTIVITY SUMMARY II TIME SUMMARY Start I Finish I Hours I Description 'Detail I Daily I Cumulative 6:00 WOC,Nipple down diverter, P/U stack and make ruff cut RU/RD 14.00 108.00 on casing.Lay cut Jt down.Move 20"annular and 16" Drilling 22.50 10:30 4.50 Spool out of cellar. Service/Repair Rig 3.00 10:30 Make cut on Conductor 37"below ground level.Make final Surveys 0.00 cut on13 3/8 20"BGL.Clean and level cut,install FMC Trips 22.50 13 5/8 X 5000 C-22 EG slip loc wellhead test to 1560psi 15 Change BHA 3.00 13:30 2.00 min.Torque slips to 275ftlbs. Casing Crew 0.00 13:30 21:00 8.50 Nipple up BOP and all related components Cementing Crew 0.00 21:00 21:30 0.50 Function test BOP's Logging 0.00 21:30 Test BOP'S and all components to 250/2500psi for 5 min., NU/ND Test 8.50 8.50 3:00 5.50 test pvt's&flow alarms gas alarms,all test pass DST/Core 0.00 3:00 4:00 1.00 Pull test plug and R/D,set wear bushing Well Control 0.00 4:00 4:30 0.50 R/U to test casing,verify guages WOC 0.00 4:30 5:30 1.00 Test 13.375 casing to 2000 psi for 30 min. P&A 0.00 5:30 6:00 0.50 Blow down all surace lines Safety Meetings 0.00 Drilling Cement 0.00 Circ/Other 1.50 8.50 24.00 TOTAL 24.00 176.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH 'TOTAL LENGTH 2 Stearing Head,Flex,NM,XO 6 5.8reg T-2 BHI 9 1/2 12.250 8.67 23.67 25.07 3 Ontrak,stab,bcpm,stop T-2 6 5/8reg BHI 8 1/4 12.13 1.70 37.73 62.80 4 NM Filter Sub 6 5/8 reg 6 5/8 reg BHI 8 1/8 2 7/8 5.08 67.88 5 NM X-over Float Sub 6 5/8 reg 6 5/8 H-90 BHI 7 13/16 2 7/8 2.76 70.64 6 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.75 1.86 29.97 100.61 7 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.50 3.22 29.24 129.85 8 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.25 3.00 29.59 159.44 9 NM X over 6 5/8 H-90 6 5/8 reg BHI 7 13/16 2 13/16 2.01 161.45 10 Circ Sub 6 5/8 reg 6 5/8 reg MI swaco 8 1/4 2 13/16 14.70 176.15 11 X-over Corrosion ring 6 5/8 reg 4 1/2 IF BHI 7 11/16 2 13/16 1.54 177.54 12 4x HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 118.90 296.59 12 Jars 4 1/2 IF 4 1/2 IF WF daily 6 3/16 2 3/4 1.69 32.07 328.66 13 19X HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 566.84 895.50 14 BIT 1.40 15 0.00 BHA TOTAL LENGTH 895.50 895.50 REMARKS&COMMENTS DIESEL No accidents-No spills-No near misses Diesel on Location 5,826 Jim Regg from AOGCC called @15:30 11-1-11 waived witness Diesel Used Last 24 1,711 Diesel Received 0 Note:Casing Cut Joint 24.55 TOTAL DIESEL 4,115 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 _ 9 18 PRA DSM 2 12 24 BHI mwd Rig up unit 2 12 24 PRA Safety 1 2 2 AIMM Haul water 1 8 8 7 WF casing crew _ 0 0 0 BHI DD drillers 2 12 _ 24 CINGSA Conrad/Rick _ 0 0 0 0 Camrig Rig up 2 5 10 0 SLB Rig up cmt unit 0 0 0 0 NOV Supplys 1 1 1 - TOTAL COUNT 36 •TOTAL MAN HOURS 411 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate CINGSA - DAILY DRILLING REPORT Date: 11/4/2011 Well Name CLU Storage 2 BHA#: 2 DSM Days: John Nicholson Current Depth: 4052 Location: Kenai,AK Depth:Target 7656 Cell Phone: (907)299-4306 Ftg/24hrs. 1321 Field/Pool: Cannery Loop/Sterling C contra tor: Nabors Alaska-Rig 105 E NighM. Mike Grubb Days Since Present Drill ahead @4052' Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Saud ODeration: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 2 121/4 HCC QD-605X 7022287 3x11 4x14 2731 #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 J-55 BTC 2721 Schlumberger 1-Nov Intermediate Liner Tubing PUMP#1 PUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT _ 9 9.1 _GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 48 44 S.ASH(50 lb bag) 8 47 LINER SIZE 6 LINER SIZE 6 R600/R300 42/28 35/24 _KLA-GUAURD 4 4 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 24/16 20/18 LOTORQ 660 660 SPM 90 SPM 90 R6/R3 _ 10/8 7/6 ASPHASOLSUPREME 70 70 GPS 3.18 GPS 3.18 PV 14 11 CONQOR 404 2 2 GPM 206 GPM 206 YP 14 13 POTASSIUM CHLORIDE 216 216 PSI 1500 PSI 1500 GELS 10/12/15 7/8/8 FLOWZAN 24 28 BTMS UP MIN 36 BTMS UP MIN 36 API FLUID LOSS 11.2 6.2 PAC 20 20 TOT CIR MIN 87 TOT CIR MIN 87 CAKE APH/HT 2/ 2/ CF-DESCO II 20 AVDP: AVDP: SOLIDS 4 4 MYACIDE GA25 _ 2 AVDC: AVDC: OIL/WATER 2/95 GEL-X 17 AVDC: AVDC: SAND .8 CITRIC ACID 15 DRILL STRING&HYDRAULICS PH 9.6 9.4 PORTABLE ARTIC MUD 1 3 STRING WT. 94 WOB 12 Pf/Mf .40/.70 .10/1.40 SAFE-GARB 40 0 PICKUP 123 RPM 130 CHLORIDES 500 22500 SODIUM BICARBONATE 20 SLACK OFF 74 TFA 0.8353 CA 260 BARITE 80 MAX PULL 123 HSP 109/0.9 VOL.PIT-(BBL) 678 LIQUIDS 193 1181 ECD 9.22 PRESS DROP 336/21 HOLE-(BBL) 380 477 SOLIDS (BBLS hauled by AIMM) 93 435 DCOD 2.875 JET VEL 203 API SCREEN 3-165 1-105 Daily Mud Cum. 1291 3187 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description 'Detail I Daily I Cumulative 6:00 7:00 1.00 R/U and test 13 3/8 casing to 2000psi/30min RU/RD 108.00 7:00 10:30 3.50 PJSM;Make up 12 1/4 hole section BHA RIH W/HWDP Drilling 14.50 37.00 10:30 RIH P/U and drift 48jts 5"drill pipe RIH to 2560'wash and Service/Repair Rig 3.00 rotate down to 2619'Tag top of Float collar(no cement Surveys 0.00 13:30 3.00 F/C Trips 6.50 29.00 13:30 Drill out shoe track F 2619 to 2721" Clean out old hole F/ Change BHA 3.00 2719'to 2731'(note Drilled firm cement F/2719-2725') Casing Crew 0.00 15:30 2.00 Drill new hole F/2731'to 2751' Cementing Crew 0.00 15:30 Pump 30bbl spacer and displace hole with new 9.Oppg flow Logging 0.00 pro mud @ 9bbls per min.Transfer mud displaced to NU/ND Test 1.50 1.50 16:30 1.00 dewatering unit total of 340bb1 displaced DST/Core 0.00 16:30 17:00 0.50 Perform Fit test 9.Oppg mw 2414tvd 780psi=15PPG emw Well Control 0.00 17:00 19:30 2.50 Drill 12 1/4 hole section F/2751'-2965' WOC 0.00 19:30 20:00 0.50 Change out mud pump#2 bleeder valve(washed out) 0.00 20:00 0:00 4.00 Drill 12 1/4 hole section F/2965'-3445'up,105,rt 90,dn 87 Safety Meetings 0.00 0:00 6:00 6.00 Drill 12 1/4 hole section F/3445'-4052' up 123,do 74,rt 94 Barite 0.00 tq 6-8,art 7.3 Circ/Other 1.50 10.00 24.00 TOTAL 24.00 191.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 2 Stearing Head,Flex,NM,XO 6 5.8reg T-2 BHI 9 1/2 12.250 8 67 23.67 25.07 3 Ontrak,stab,bcpm,stop . T-2 6 5/8reg BHI 8 1/4 12.13 1.70 37.73 62.80 4 NM Filter Sub 6 5/8 reg 6 5/8 reg BHI 8 1/8 2 7/8 5.08 67.88 5 NM X-over Float Sub 6 5/8 reg 6 5/8 H-90 BHI 7 13/16 2 7/8 2.76 70.64 6 CSNMDP 6 5/8 H-90 _ 6 5/8 H-90 BHI 6 3/4 _ 2 7/8 7.75 1.86 29.97 100.61 7 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.50 3.22 29.24 129.85 8 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.25 3.00 29.59 159.44 9 NM X over 6 5/8 H-90 6 5/8 reg BHI 7 13/16 2 13/16 2.01 161.45 10 Circ Sub 6 5/8 reg 6 5/8 reg MI swaco 8 1/4 2 13/16 14.70 176.15 11 X-over Corrosion ring 6 5/8 reg 4 1/2 IF BHI 7 11/16 _ 2 13/16 1.54 177.54 12 4x HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 118.90 296.59 12 Jars 4 1/2 IF 4 1/2 IF WF daily 6 3/16 2 3/4 1.69 32.07 328.66 13 19X HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 566.84 895.50 14 BIT 1.40 15 0.00 BHA TOTAL LENGTH 895.50 895.50 REMARKS&COMMENTS DIESEL No accidents-No spills-No near misses HSE Location needs to be sanded Diesel on Location, 4,117 Flow check on every connection Diesel Used Last 24 1,284 469 bbls dewater processed #1 SPR @26 spm 320 psi 3383'and Diesel Received 0 Valve drill 38sec. #2 SPR@40 spm 370 psi 3383'and TOTAL DIESEL 2,833 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 12 24 PRA DSM 2 12 24 BHI mwd mwd 2 12 24 PRA Safety 1 2 2 Aimm Rstb 2 12 24 Aimm Vac 3 12 36 BHI DD drillers 2 12 24 CINGSA Conrad/Rick 1 2 2 MI dewater 2 12 24 Camrig mud log _ 4 12 48 0 SLB Rig up cmt unit 0 0 0 0 NOV Supplys 1 1 1 - TOTAL COUNT 45 TOTAL MAN HOURS 533 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' . Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate CINGSA - DAILY DRILLING REPORT Date: 11/5/2011 Well Name CLU Storage 2 BHA#: 2 DSM Days: John Nicholson Current Depth: 5460' Location: Kenai,AK Target 7680' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 1408' Field/Pool: Cannery Loop/Sterling C Contractor:Ig Nabors Alaska-Rig 105 E N�QhM: Mike Grubb Days SincePresent 6 Drilling 12 1/4"hole @ 5460' Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 F Spud Operation . DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 2 121/4 HCC QD-605X 7022287 3x11 4x14 2731 #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 J-55 BTC 2721 Schlumberger _ 1-Nov Intermediate Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily 'Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.2 9.2 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 _FUNNEL VIS 45 45 S.ASH(50 lb bag) 6 53 LINER SIZE 6 LINER SIZE 6 R600/R300 54/39 44/31 KLA-GUAURD 4 8 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 32/24 26/19 LOTORQ 330 930 SPM 90 SPM 90 R6/R3 9/8 8/7 ASPHASOL SUPREME 70 GPS 3.18 GPS 3.18 Pv 15 13 CONQOR 404 2 4 GPM 206 GPM 206 YP 24 18 _POTASSIUM CHLORIDE 150 216 PSI 1500 PSI 1500 GELS 9/13/15 8/12/16 FLOWZAN 28 56 BTMS UP MIN 46 BTMS UP MIN _ 36 API FLUID LOSS 6 6.4 PAC 8 28 TOT CIR MIN 98 TOT CIR MIN 87 CAKE APH/HT 1/ 1/ CF-DESCO II 20 AVDP: 119.40 AVDP: 119.40 SOLIDS 5 5 MYACIDE GA25 2 AVDC: 142.80 AVDC: 142.80 OIL/WATER 2/93 2/93 GEL-X 17 AVDC: 142.80 AVDC: 142.80 SAND 1.2 1.23 CITRIC ACID 15 DRILL STRING Sr HYDRAULICS PH 9.4 9.2 Resinex 20 20 STRING WT. WOB 14 Pf/Mf .10/1.35 .10/1.3 Caustic soda 12 12 PICK UP RPM _ 130 CHLORIDES 25000 24000 SODIUM BICARBONATE 20 SLACK OFF TFA 0.8353 CA 200 200 BARITE 80 MAX PULL _HSP 145/1.2 VOL.PIT-(BBL) 678 LIQUIDS 396 1577 ECD 9.22 PRESS DROP 407/23.2 HOLE-(BBL) 747 SOLIDS (BBLS hauled by AIMM) 116 551 DCOD 2.875 JET VEL 222 API SCREEN 4-200's Daily Mud Cum. 1073 4054 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 Drill 12 1/4 hole section F/4052'-4722'Up wt. 140k RU/RD 108.00 Dn.Wt.75k RT Wt 100k TQ 8-9fpklb.600gpm 1650psi Drilling 13.50 37.00 12:00 6.00 ART=4.10.No gain/loss Max gas 74units Service/Repair Rig 0.50 3.00 12:00 Drill 12 1/4 hole section F/ 4722'-5393'Up wt.146k Surveys 0.00 Dn.Wt.91k RT Wt 110k TQ 8-9fpklb.600gpm 1650psi Trips 9.00 29.00 18:30 6.50 ART=4.2 No gain/loss Max gas units Change BHA 3.00 18:30 19:30 1.00 Circulate B/U condition hole for wiper trip 600gpm 130rpm Casing Crew 0.00 19:30 Monitor well,take slow pump rates POH(wiper Trip)from Cementing Crew 0.00 2:00 6.50 5393'-2712'(back ream to shoe)350 gpm,4851',3666',3520' Logging 0.00 tight taking 15k while backreaming NU/ND Test 0.00 2:00 2:30 0.50 Lube and service top drive(CBU while servicing) DST/Core 0.00 2:30 Trip in hole from 2712'-5393 Wash F/5297'to 5393 tag Well Control 0.00 Bottom,Pump nut plug sweep to clean up excessive WOC 0.00 build up of clay on bit from wiper trip.up 146k,dn91 k,rt 110k 0.00 5:00 2.50 tq 8-10,Off bottom press 1800 psi,smooth trip Safety Meetings 0.00 5:00 6:00 1.00 Drill from 5393'-5460'art-.7 hrs Barite 0.00 Circ/Other 1.00 10.00 24.00 'TOTAL 24.00 190.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 2 Stearing Head,Flex,NM,XO 6 5.8reg T-2 BHI 9 1/2 12.250 8.67 23.67 25.07 3 Ontrak,stab,bcpm,stop T-2 6 5/8reg BHI 8 1/4 12.13 1.70 37.73 62.80 4 NM Filter Sub 6 5/8 reg 6 5/8 reg BHI 8 1/8 2 7/8 5.08 67.88 5 NM X-over Float Sub 6 5/8 reg 6 5/8 H-90 BHI 7 13/16 2 7/8 2.76 70.64 6 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.75 1.86 29.97 100.61 7 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.50 3.22 29.24 129.85 8 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.25 3.00 29.59 159.44 9 NM X over 6 5/8 H-90 6 5/8 reg BHI 7 13/16 2 13/16 2.01 161.45 10 Circ Sub 6 5/8 reg 6 5/8 reg MI swaco 8 1/4 2 13/16 14.70 176.15 11 X-over Corrosion ring 6 5/8 reg 4 1/2 IF BHI 7 11/16 2 13/16 1.54 177.54 12 4x HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 118.90 296.59 12 Jars 4 1/2 IF 4 1/2 IF WF daily 6 3/16 2 3/4 1.69 32.07 328.66 13 19X HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 566.84 895.50 14 BIT 1.40 15 0.00 BHA TOTAL LENGTH 895.50 895.50 REMARKS&COMMENTS DIESEL No accidents-No spills-No near misses Diesel on Location 2,833 Flow check on every connection Diesel Used Last 24 1,959 BOP drill SPR#1 @2bpm 300psi @5393' Diesel Received 5,804 SPR#2 @3bpm 400psi @5393' TOTAL DIESEL 6,678 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 12 24 PRA DSM 2 12 24 BHI mwd mwd 2 12 24 PRA Safety 1 2 2 Aimm Rstb _ 2 _ 12 24 Aimm Vac 3 12 36 BHI DD drillers 2 12 24 CINGSA Conrad/Rick 1 2 2 MI dewater _ 2 12 24 Camrig mud log 4 12 48 _ 0 SLB Rig up cmt unit 0 0 0 0 NOV Supplys 1 1 1 - TOTAL COUNT 45 TOTAL MAN HOURS 533 FROM TO LENGTH JOINT DESCRIPTION G/L 97' _ 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') CINGSA - DAILY DRILLING REPORT Date: 11/6/2011 Well Name CLU Storage 2 BHA#: 2 DSM Days: John Nicholson Current Depth: 7498' Location: Kenai,AK Target 7680' Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 2038 Field/Pool: Cannery Loop/Sterling C Contractor ig Nabors Alaska-Rig 105 E N DSM Mike Grubb Days Since Present Drilling ahead @7498' Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Soud Operation- DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 2 121/4 HCC QD-605X 7022287 3x11 4x14 2731 #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 J-55 BTC 2721 Schlumberger 1-Nov Intermediate Liner Tubing PUMP#1 IPUMP#2 JMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.3 9.3 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 49 49 S.ASH(50 lb bag) 12 65 LINER SIZE 6 LINER SIZE 6 R600/R300 55/41 52/38 KLA-GUAURD 4 12 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 34/27 32/25 LOTORQ 1520 2450 SPM 90 SPM 90 R6/R3 12/10 11/10 ASPHASOL SUPREME 50 120 GPS 3.18 GPS 3.18 PV 14 14 CONQOR 404 2 6 GPM 206 GPM 206 YP 27 24 POTASSIUM CHLORIDE 124 340 PSI 1500 PSI 1500 GELS 13/22/23 13/21/23FLOwzAN 4 60 BTMS UP MIN 46 BTMS UP MIN 36 API FLUID LOSS 6.6 6.8 PAC 5 33 TOT CIR MIN 98 TOT CIR MIN 87 CAKE APH/HT 1/ 1/ CF-DESCO II 20 AVDP: .U.<ii AVDP: SOLIDS 6 6 MYACIDE GA25 2 AVDC: 42.80 AVDC: OIL/WATER 3/91 2/92 GEL-X 17 AVDC: 42.80 AVDC: SAND 1 1 CITRIC ACID 15 DRILL STRING&HYDRAULICS PH 9.3 9.2 Resinex 54 74 STRING WT. 124 WOB 116 Pf/Mf .10/1.2 .10/1.2 Caustic soda 5 17 PICK UP 167 RPM 130 CHLORIDES 26000 27000 SODIUM BICARBONATE/mrtabisulf 1 21 SLACK OFF 94 TFA 0.8353 CA 260 260 BARITE/nut plug 8 88 MAX PULL HSP 146/1.2 VOL.PIT-(BBL) 678 LIQUIDS 330 1907 ECD 9.62 PRESS DROP 412/17.8 HOLE-(BBL) 956 SOLIDS (BBLS hauled by AIMM) 70 621 DCOD 2.875 JET VEL 222 API SCREEN 4-200's Daily Mud Cum. 2189 6235 ACTIVITY SUMMARY 1 TIME SUMMARY Start I Finish I Hours 1 Description IDetail 1 Daily J Cumulative 6:00 Drill 12 1/4 hole section F/ 5460'-6010'Up wt.155k RU/RD 108.00 Dn.Wt.851k RT Wt 114k TO 10-12k.610gpm 2100psi Drilling 23.00 60.00 12:00 6.00 ART=4.0hrs No gains or losses Max gas 200units Service/Repair Rig 3.00 12:00 Drill 12 1/4 hole section F/ 6010'-6620'Up wt.165k Surveys 0.00 Dn.Wt.98k RT Wt 118k TO 12-14k.610gpm 2100psi Trips 29.00 18:00 6.00 ART=4.3hrs No gains or losses Max gas units 435 Change BHA 3.00 18:00 Drill 12 1/4 hole section F/ 6620'-6733'Up wt.162k Casing Crew 0.00 Dn.Wt.94k RT Wt115k TQ 12-14k.610gpm 2100psi Cementing Crew 0.00 19:00 1.00 ART=.7 hrs No gains or losses 127 Max gas units Logging 0.00 19:00 20:00 1.00 Circulate bottoms up,cuttings increase app 20% NU/ND Test 0.00 20:00 ART=4.5 hrs No gains or losses Max gas units 75 DST/Core 0.00 Drill 12 1/4 hole section F/ 6733'-7307'Up wt.167k Well Control 0.00 Dn.Wt.98k RT Wt124k TQ 17-18k.610gpm 2350psi WOC 0.00 3:00 7.00 Daylight saving time(turn back time, 1 hour) 0.00 2:00 3:00 1.00 Circulate bottoms up,cuttings increase 25% Safety Meetings 0.00 3:00 ART=1.8 hrs No gains or losses Max gas units 53 Barite 0.00 6:00 3.00 Drill 12 1/4 hole section F/7307'-7498'Up wt. 168k Circ/Other 2.00 12.00 25.00 Dn.Wt.90k RT Wt 125k TO 17-18k.610gpm 2350 psi TOTAL 25.00 215.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH 'TOTAL LENGTH 2 Stearing Head,Flex,NM,XO 6 5.8reg T-2 BHI 9 1/2 12.250 8 67 23.67 25.07 3 Ontrak,stab,bcpm,stop T-2 6 5/8reg BHI 8 1/4 12.13 1.70 37.73 62.80 4 NM Filter Sub 6 5/8 reg 6 5/8 reg BHI 8 1/8 2 7/8 5.08 67.88 5 NM X-over Float Sub 6 5/8 reg 6 5/8 H-90 BHI 7 13/16 2 7/8 2.76 70.64 6 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.75 1.86 29.97 100.61 7 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.50 3.22 29.24 129.85 8 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.25 3.00 29.59 159.44 9 NM X over 6 5/8 H-90 6 5/8 reg BHI 7 13/16 2 13/16 2.01 161.45 10 Circ Sub 6 5/8 reg 6 5/8 reg MI swaco 8 1/4 2 13/16 14.70 176.15 11 X-over Corrosion ring 6 5/8 reg 4 1/21F BHI 7 11/16 2 13/16 1.54 177.54 12 4x HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 118.90 296.59 12 Jars 4 1/2 IF 4 1/2 IF WF daily 6 3/16 2 3/4 1.69 32.07 328.66 13 19X HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 566.84 895.50 14 BIT 1.40 15 0.00 BHA TOTAL LENGTH 895.50 895.50 REMARKS&COMMENTS DIESEL No accidents-No spills-No near misses Daylight savings time 1 extra hour Diesel on Location 6,678 Flow check on every connection As per geoligist well extended to app 7900' Diesel Used Last 24 2,458 SPR#1 @2bpm 190psi @6541'and Diesel Received 0 SPR#2 @3bpm 225psi@6541'and TOTAL DIESEL 4,219 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 12 24 PRA DSM 2 12 24 BHI mwd mwd 2 12 24 PRA Safety 0 0 _ 0 Aimm Rstb 2 12 24 Aimm Vac 3 12 36 BHI DD drillers 2 12 24 CINGSA Conrad/Rick 1 2 2 MI dewater 2 12 24 Camrig mud log 4 12 48 CINGSA Geologist 1 12 12 SLB Deliver cmt 2 2 4 0 NOV Supplys 1 1 1 - TOTAL COUNT 47 TOTAL MAN HOURS 547 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' _ Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate - CINGSA - DAILY DRILLING REPORT Date: 11/7/2011 Well Name CLU Storage 2 BHA#: 2 DSM Days: John Nicholson Current Depth: 7756 Location: Kenai,AK Target 7756' Cell Phone: (907)299-4306 Depth: _ Ftg/24hrs. 258 Field/Pool: Cannery Loop/Sterling C Rig Nabors Alaska-Rig 105 E DSM Mike Grubb Contractor: Nights: Days Since 8 Present Back ream out of hole @ 5350' Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Spud Operation: DRILLING DATA BIT it SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 2 121/4 HCC QD-605X 7022287 3x11 4x14 2731 7756 5025 34.5 146.00 #DIV/0! #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 J-55 BTC 2721 - Schlumberger 1-Nov Intermediate Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 9.1 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 40 42 S.ASH(50 lb bag) 0 65 LINER SIZE 6 LINER SIZE 6 R600/R300 36/26 38/26 KLA-GUAURD 12 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 20/14 20/15 LOTORQ/776 336 2786 SPM 90 SPM 90 R6/R3 6/5 6/5 ASPHASOL SUPREME 120 GPS 3.18 GPS 3.18 PV 10 12 CONQOR 404 6 GPM 206 GPM 206 YP 16 14 POTASSIUM CHLORIDE 168 508 PSI 1500 PSI 1500 GELS 6/10/12 6/11/13 FLOWZAN 13 73 BTMS UP MIN 46 BTMS UP MIN 36 API FLUID LOSS 7.6 7.4 PAC 4 37 TOT CIR MIN 98 TOT CIR MIN 87 CAKE APH/HT 1/ 1/ CF-DESCO II 20 AVDP: AVDP: SOLIDS 5 5 MYACIDE GA25 2 AVDC: AVDC: OIL/WATER 2/93 2/93 GEL-X 17 AVDC: AVDC: SAND .2 .25 CITRIC ACID/safe carb 217 232 DRILL STRING&HYDRAULICS PH 9.2 9.3 Resinex 74 STRING WT. 125 WOB 116 Pf/Mf .10/1.10 .10/1.2 Caustic soda 2 19 PICK UP 160 RPM 130 CHLORIDES 27000 27000 SODIUM BICARBONATE/mrtabisulf 21 SLACK OFF 93 TFA 0.8353 CA 200 200 BARITE/nut plug 88 MAX PULL 185 •HSP 146/1.2 VOL.PIT-(BBL) 678 LIQUIDS 300 2207 ECD 9.62 PRESS DROP 412/17.8 HOLE-(BBL) 956 SOLIDS (BBLS hauled by AIMM) 27 648 DCOD 2.875 JET VEL 222 API SCREEN 4-200's Daily Mud Cum. 1067 7302 ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish I Hours I Description 'Detail I Daily J Cumulative 6:00 Drill 12 1/4 hole section F/ 7498'-7756'Up wt.155k RU/RD 108.00 Dn.Wt.95k RT Wt 124k TQ 13-17k.610gpm 2350psi Drilling 3.50 63.50 ART =2.8hrs No gains or losses Max gas 900 units Service/Repair Rig 3.00 9:30 3.50 As per geological Decision TD 7756'MD 4957'TVD Surveys 0.00 9:30 Circulate and condition mud for Wiper trip at 7756' Trips 15.00 29.00 Lost circulation,Reduce pump rate to 150gpm 50rpm. Change BHA 3.00 Pump 40bbl 25#per bbl 40 and 20 sized safe carb pill Casing Crew 0.00 Spot on bottom,losses stopped Pull 2 stands.Drop 2.5 Cementing Crew 0.00 Ball to open well commander.Pressure up on ball,tool Logging 0.00 would not open. Increase pressure to 3500psi W/O success NU/ND Test 0.00 R/U test pump and pressure up to 4000,4500 and 4600 DST/Core 0.00 15:00 5.50 Ball would not shear. Well Control 0.00 15:00 6:00 15.00 POH on elevators having to back ream when hole is tight WOC 0.00 F/7756'-5350'Trip improved at 5390'Old wiped Hole 0.00 Slight losses to hole 2bbl per hr.Total losses 370bbls , Safety Meetings 0.00 attempting to POH on elevators F/5390' Barite 0.00 Back ream at 60-90rpm Tq 12K to 20k. Circ/Other 5.50 17.50 24.00 TOTAL 24.00 224.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I 1.D. I GAUGE I NECK I LENGTH 'TOTAL LENGTH 2 Stearing Head,Flex,NM,XO 6 5.8reg T-2 BHI 9 1/2 12.250 8 67 23.67 25.07 3 Ontrak,stab,bcpm,stop T-2 6 5/8reg BHI 8 1/4 12.13 1.70 37.73 62.80 4 NM Filter Sub 6 5/8 reg 6 5/8 reg BHI 8 1/8 2 7/8 5.08 67.88 5 NM X-over Float Sub 6 5/8 reg 6 5/8 H-90 BHI 7 13/16 2 7/8 2.76 70.64 6 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.75 1.86 29.97 100.61 7 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.50 3.22 29.24 129.85 8 CSNMDP 6 5/8 H-90 6 5/8 H-90 BHI 6 3/4 2 7/8 7.25 3.00 29.59 159.44 9 NM X over 6 5/8 H-90 6 5/8 reg BHI 7 13/16 2 13/16 2.01 161.45 10 Circ Sub 6 5/8 reg 6 5/8 reg MI swaco _ 8 1/4 2 13/16 14.70 176.15 11 X-over Corrosion ring 6 5/8 reg 4 1/2 IF BHI 7 11/16 2 13/16 1.54 177.54 12 4x HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 118.90 296.59 12 Jars 4 1/2 IF 4 1/2 IF WF daily 6 3/16 2 3/4 1.69 _ 32.07 328.66 13 19X HWDP 4 1/2 IF 4 1/2 IF Nabors 5 3 566.84 895.50 14 BIT 1.40 15 0.00 BHA TOTAL LENGTH 895.50 895.50 REMARKS&COMMENTS DIESEL Diesel on Location day before 4,219 Flow check on every connection Diesel Used Last 24 2,332 losses to hole 370 bbls SPR#1 2bpm 190 psi @ 7756'and Diesel Received 0 BOP Drill/FIRE DRILL SPR#2 3bpm 225 psi @7756'and TOTAL DIESEL 1,887 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 12 24 PRA DSM 2 12 24 BHI mwd mwd 2 12 24 PRA Safety 0 0 0 0 Aimm Vac 3 12 36 BHI DD drillers 2 12 24 CINGSA Conrad/Rick MI dewater 2 12 24 Camrig mud log 4 12 48 CINGSA Geologist 1 12 12 SLB 0 NOV Supplys 1 1 1 - TOTAL COUNT 42 TOTAL MAN HOURS 517 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') CINGSA - DAILY DRILLING REPORT Date: 11/8/2011 Well Name CLU Storage 2 BHA#: 3 DSM Days: John Nicholson Current Depth: 7756' Location: Kenai,AK Target 7756' Cell Phone (907)299-4306 Depth: Ftg/24hrs. Field/Pool: Cannery Loop/Sterling C conRactor:ig Nabors Alaska-Rig 105 E NSM Mike Grubb Days Since 9 Present circulate and condition Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Spud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FTIhm 2 121/4 HCC QD-605X 7022287 3x11 4x14 2731 7756 5025 -1-No-A-X-I-No-T 34.5 146.00 2RR1 121/4 HCC QD-605X 7022287 3x11 4x14 7756 7756 7756 34.5 #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD( DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 J-55 BTC 2721 Schlumberger 1-Nov Intermediate Liner Tubing PUMP#1 (PUMP#2 JMUD PROPERTIES: (MUD ADDITIVES: I Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 43 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 37/27 KLA-GUAURD 12 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 20/13 LOTORQ/776 2786 SPM 90 SPM 90 R6/R3 6/5 ASPHASOL SUPREME 120 GPS 3.18 GPS 3.18 PV 11 CONQOR 404 6 GPM 206 GPM 206 _YP 15 POTASSIUM CHLORIDE 508 PSI 1500 PSI 1500 GELS 6/10/12 FLOWZAN 73 BTMS UP MIN 46 BTMS UP MIN 36 _API FLUID LOSS 7.8 PAC 37 TOT CIR MIN _ 98 TOT CIR MIN 87 CAKE APH/HT 1/ CF-DESCO II 20 AVDP: AVDP: 11 U.UU SOLIDS 5 MYACIDE GA25 2 AVDC: AVDC: 1d' 5n OIL/WATER 2/93 GEL-X 17 AVDC: AVDC: SAND .1 CITRIC ACID/safe carb 232 DRILL STRING&HYDRAULICS IPH 9.2 Resinex 74 STRING WT. 130 WOB Pf/Mf .05/1.2 Caustic soda 19 PICK UP 155 RPM 75 CHLORIDES 26500 SODIUM BICARBONATE/mrtabisulf 21 SLACK OFF 97 TFA 0.8353 CA 200 BARITE/nut plug 88 MAX PULL 180 HSP 146/1.2 VOL.PIT-(BBL) 562 LIQUIDS 2207 ECD 9.62 PRESS DROP 412/17.8 HOLE-(BBL) 1076 SOLIDS (BBLS hauled by AIMM) 93 648 DCOD 2.875 JET VEL 222 API SCREEN 4-200's Daily Mud Cum. 93 7302 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description IDetail 1 Daily I Cumulative 6:00 Continue to POH SLM on elevators F/5390'to 2731'enter RU/RD 108.00 8:30 2.50 13 3/8 shoe W/O problems Stop and Monitor well at shoe Drilling 63.50 8:30 Continue to POH SLM F/2731'Stand back HWDP,Lay jars Service/Repair Rig 3.00 17:00 8.50 down,down load mwd ontrak,clean and clear floor Surveys 0.00 17:00 19:00 2.00 Pick up clean out assembly,RIH BHA#3 to 823' Trips 21.00 29.00 19:00 20:30 1.50 Continue run in hole to shoe+@2719' Change BHA 3.00 20:30 21:30 1.00 Circulate while service and lube top drive,crown and blocks Casing Crew 0.00 21:30 Continue run in hole from 2719'-7756',(wash and ream from Cementing Crew 0.00 3:30 6.00 5543'to 5703'no fill )up 15 k,dn 97k Logging 0.00 3:30 4:30 1.00 Circulate,lost circulation,spot 100bbI 100#per bbl Icm pill, NU/ND Test 0.00 4:30 5:00 0.50 Pull out of hole from 7756'-6924',monitor well DST/Core 0.00 5:00 6:00 1.00 Circulate and condition for 9 5/8 casing run Well Control 0.00 WOC 0.00 0.00 Safety Meetings 0.00 Barite 0.00 Circ/Other 3.00 17.50 24.00 TOTAL 24.00 224.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 1 BIT 6 5/8 REG P1.4 12 1/4 1.40 1.40 2 BIT SUB 1 2/5 BHI 8 _ 2.46 3.86 3 STAB I 6 5/8 H90 P 6 5/8 H90 B BHI 8 2 3/16 12.13 2.58 _ 6.00 9.86 4 CSNMDP 6 5/8 H90 P 6 5/8 H90 B BHI 6 3/4 2 7/8 7.75 1.86 _ 29.97 39.83 5 STAB 6 5/8 H90 P 6 5/8 H90 B BHI 8 1/8 2 13/16 12.13 2.35 5.39 45.22 6 CSNMDP 6 5/8 H90 P 6 5/8 H90 B BHI 6 3/4 2 7/8 7.50 3.22 29.24 74.46 7 CSNMDP 6 5/8 H90 P 6 5/8 H90 B BHI 6 3/4 2 7/8 7.25 3.00 _ 29.59 104.05 8 -X-O I 6 5/8 H90 P 4 1/2 IF B BHI 7 3/4 3 1/2 1.58 105.63 9 4-HWDP 4 1/2 IF P 4 1/2 IF B NABORS 5 3 6.50 _ 118.90 224.53 10 JARS 4 1/2 IF P 4 1/2 IF B WFD 6 1/4 2.25 1.69 31.67 256.20 11 19-HWDP 4 1/2 IF P 4 1/2 IF B NABORS 5 3 6.50 566.84 823.00 12 4.00 , 13 14 15 BHA TOTAL LENGTH 823.04 REMARKS&COMMENTS DIESEL lost 162bbIs to hole Diesel on Location day before 1,887 Flow check on every connection Diesel Used Last 24 2,050 SPR#1 2bpm 190 psi @ 7756'and Diesel Received 6,969 SPR#2 3bpm 225 psi @7756'and TOTAL DIESEL 6,806 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 12 24 PRA DSM 2 12 24 BHI mwd mwd 2 12 24 PRA Safety 0 0 0 0 Aimm Vac 3 _ 12 36 BHI DD drillers 2 12 24 CINGSA Conrad/Rick _ _ MI dewater 2 12 24 Camrig mud log 4 _ 12 48 CINGSA Geologist SLB 0 NOV Supplys 1 1 1 - TOTAL COUNT 41 TOTAL MAN HOURS 505 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') it VIII CINGSA - DAILY DRILLING REPORT Date. 11/9/2011 Well Name CLU Storage 2 BHA#: 9 5/8 casing DSM Days: Steve Ratcliff Current Depth: 7756' Location: Kenai,AK Target 7756' Cell Phone: (281)914-6250 Depth: Ftg/24hrs. Field/Pool: Cannery Loop/Sterling C ConRi tor: Nabors Alaska-Rig 105 E NSM Mike Grubb Days Since 10 Present running 9 5/8"casing from 2600' Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Soud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 2 121/4 HCC QD-605X 7022287 3x11 4x14 2731 7756 5025 -,-N0,-x-I-No-1 34.5 146.00 2RR1 12 1/4 HCC QD-605X 7022287 3x11 4x14 7756 7756 7756 1 NO-A-x-:-N0 I 34.5 clean out run CASING I SIZE I WEIGHT GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 _ J-55 BTC 2721 Schlumberger 1-Nov Intermediate Liner • Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 43 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 37/27 KLA-GUAURD 12 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 21/13 LOTORQ/776 350 3136 SPM SPM R6/R3 6/5 ASPHASOL SUPREME 27 147 GPS 3.18 GPS 3.18 Pv 12 CONQOR 404 6 GPM GPM YP 15 POTASSIUM CHLORIDE 50 558 PSI PSI GELS 6/8/11 FLOWZAN 73 BTMS UP MIN BTMS UP MIN API FLUID LOSS 7.8 PAC 4 41 TOT CIR MIN TOT CIR MIN CAKE APH/HT 1/ CF-DESCO II 20 AVDP: AVDP: SOLIDS 5 MYACIDE GA25 2 AVDC: AVDC: OIL/WATER 2/93 GEL-X 17 AVDC: AVDC: SAND .1 CITRIC ACID/safe carb 75 307 DRILL STRING&HYDRAULICS PH 9 Resinex 74 STRING WT. WOB Pf/Mf .05/.0 Caustic soda 19 PICK UP RPM CHLORIDES 26000 SODIUM BICARBONATE/mrtabisulf 21 SLACK OFF TFA CA 200 BARITE/nut plug/g seal 104 192 MAX PULL HSP VOL.PIT-(BBL) 456 LIQUIDS 2207 ECD PRESS DROP HOLE-(BBL) 1141 SOLIDS (BBLS hauled by AIMM) 22 670 DCOD JET VEL API SCREEN 4-200's Daily Mud Cum. 632 7934 ACTIVITY SUMMARY I TIME SUMMARY _ Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 8:00 2.00 Continue circulate and condition,spot lube pill 3.5% RU/RD 7.00 115.00 8:00 13:30 5.50 Trip out of hole from 6924'to 823'(monitor well at shoe) Drilling 63.50 13:30 15:30 2.00 POOH with BHA from 823',stand back hwdp,lay down Service/Repair Rig 3.00 BHA#3 and clear floor. Surveys 0.00 15:30 17:00 1.50 Drain stack,pull wear bushing,rinse stack and set test plug Trips 7.50 36.50 17:00 18:30 1.50 Change pipe rams to 9 5/8"rams Change BHA 3.00 18:30 20:00 1.50 Test 9 5/8 rams to 250/2500 psi for 5 min.,R/D test Casing Crew 5.50 5.50 20:00 20:30 0.50 Drift BOP with landing joint and hanger,mark landing joint Cementing Crew 0.00 20:30 0:30 4.00 Rig up to run 9 5/8 casing,rig up stabing board,change out Logging 0.00 bales,elevators,casing spiders,rig up weatherford NU/ND Test 1.50 1.50 0:30 6:00 5.50 Run 9 5/8 casing as per program,check floats,Run in hole DST/Core 0.00 to 2600' Well Control 0.00 WOC 0.00 0.00 Safety Meetings 0.00 Barite 0.00 Circ/Other 2.50 20.00 24.00 TOTAL 24.00 248.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH ITOTAL LENGTH 1 2 3 4 5 6 . 7 8 I 9 10 . 11 12 13 14 15 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL hole taking 1.3 bbls per hour Diesel on Location day before 6,806 Flow check on every connection Diesel Used Last 24 1,457 Diesel Received 0 TOTAL DIESEL 5,349 G PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 12 24 PRA DSM 2 12 24 BHI mwd mwd 2 12 24 PRA Safety 1 4 4 FMC well head 1 12 12 Aimm Vac 2 24 48 BHI DD drillers 2 12 24 CINGSA Conrad/Rick 1 2 2 MI dewater 2 12 _ 24 Camrig mud log 4 12 48 CINGSA Geologist SLB _ Davis Lynch float 1 12 12 NOV Supplys 1 1 1 - TOTAL COUNT 44 TOTAL MAN HOURS 547 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') CINGSA - DAILY DRILLING REPORT Date: 11/10/2011 Well Name CLU Storage 2 BHA#: DSM Days: Steve Ratcliff • Current Depth: 7756' Location: Kenai,AK Target 7756' Cell Phone: (281)914-6250 Depth: , Ftg/24hrs. Field/Pool: Cannery Loop/Sterling C contractor:ig Nabors Alaska-Rig 105 E DNiSM Mike Grubb Days Since11 Present prep to cement Rig Phone: (907)398-3156 Cell Phone: (509)431-7988 Spud Operation DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 2 121/4 HCC QD-605X 7022287 3x11 4x14 2731 7756 5025 -1.N0-A-XIN0-T 34.5 146.00 2RR1 12 1/4 HCC QD-605X 7022287 3x11 4x14 7756 7756 7756 -1-NO-A-X--No-T 34.5 clean out run CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68 J-55 BTC 2721 Schlumberger 1-Nov Intermediate Liner Tubing PUMP#1 IPUMP#2 !MUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.0 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 44 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 38/26 KLA-GUAURD 12 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 21/14 LOTORQ/776 3136 SPM SPM R6/R3 6/5 ASPHASOL SUPREME 147 GPS 3.18 GPS 3.18 PV 12 CONQOR 404 6 GPM GPM YP 14 POTASSIUM CHLORIDE 66 624 PSI PSI GELS 7/9/12 FLOWZAN 25 98 BTMS UP MIN BTMS UP MIN API FLUID LOSS 8 PAC 41 TOT CIR MIN TOT CIR MIN CAKE APH/HT 1/ CF-DESCO II 10 30 AVDP: AVDP: SOLIDS 4.5 MYACIDE GA25 2 AVDC: AVDC: OILNVATER 2/94 GEL-X 17 AVDC: AVDC: SAND .1 CITRIC ACID/safe carb 130 437 DRILL STRING&HYDRAULICS PH 8.8 Resinex 74 STRING WT. WOB Pf/Mf .1/.85 Caustic soda 19 PICK UP RPM CHLORIDES 25000 SODIUM BICARBONATE/mrtabisulf 1 22 SLACK OFF TFA CA i 200 BARITE/nut plug/g seal 192 MAX PULL _ HSP VOL.PIT-(BBL) 503 LIQUIDS 2207 ECD PRESS DROP HOLE-(BBL) 1141 SOLIDS (BBLS hauled by AIMM) 670 DCOD JET VEL API SCREEN 4-200's Daily Mud Cum. 232 8166 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 Run in hole with 9 5/8 casing from 2600'to 2098"circulate RU/RD 115.00 casing volume at shoe,continue run in hole to 6034'pump Drilling 63.50 35 bbl Icm pill into casing,cont.run in hole to 7680',(lost Service/Repair Rig 3.00 16:00 10.00 circulation at 6074'pumped down with fill up tool) Surveys 0.00 16:00 19:30 3.50 hole packed off,rig down fill up tool,rig up circ head , Tripping 18.00 54.50 19:30 Work casing while establishing returns from 7625'to 7675' Change BHA 3.00 3:308.00 continue work casing to 7746'and land out Casing Crew 0.00 3:30 Circulate while building mud volume,rig down weatherford. Cementing Crew 0.00 6:00 2.50 rig up to cement,filling rig water and heating Logging 0.00 NU/ND Test 0.00 DST/Core 0.00 Well Control 0.00 WOC 0.00 0.00 Safety Meetings 0.00 Barite 0.00 Circ/Other 6.00 26.00 24.00 TOTAL 24.00 265.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 1 2 3 4 5 6 7 8 I 9 10 11 I 12 13 14 15 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No accidents or near misses. Diesel on Location day before 6,806 Flow check on every connection Diesel Used Last 24 1,457 Check mud and BOP valves. Diesel Received 0 - TOTAL DIESEL 5,349 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 12 24 PRA DSM 2 12 24 BHI mwd mwd 2 12 24 PRA Safety 1 4 4 FMC well head 1 12 12 Aimm Vac 2 _ 24 48 BHI DD drillers 2 12 24 CINGSA Conrad/Rick 1 2 2 MI dewater 2 12 24 Camrig mud log _ 4 12 48 CINGSA Geologist SLB _ 4 12 48 Davis Lynch float 1 12 12 NOV Supplys 1 1 1 - TOTAL COUNT 48 TOTAL MAN HOURS 595 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe 02719',fc 02675') Intermediate FROM _ TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 Rat hole 7746.00 7744.00 2.00 Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 7662.30 2.10 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 _ 7601.30 19.80 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 _ 2.30 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 _ 20.69 2.20 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 20.14 RT to hanger CINGSA - DAILY DRILLING REPORT Date: • 11/11/2011 Well Name .0 Storage 2 BHA#: DSM Days: Steve Ratcliff Current Depth: 7756' Location: Kenai,AK Target 8832' Cell Phone: (907)230-9902 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Contra tor: Nabors Alaska-Rig 105 E N�ghM Stephen Ratcliff Days Since 12 Present Test 5"X 7"VAR Rams Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Spud Ooeration: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 3 8 1/2 HCC HCR503ZX 7114328 3x13 3x14 7756 -7756 #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68# J-55 BTC 2721' _ Schlumberger 1-Nov Intermediate 9 5/8 _ 40# L-80 BTC 7746' Schlumberger 11-Nov Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANE Gardner Denver WEIGHT 9.3 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 44 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 34/24 KLA-GUARD 12 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 19/14 LOTORQ/776 3136 SPM SPM R6/R3 5/4 ASPHASOL SUPREME 147 GPS 3.18 GPS 3.18 PV 10 CONQOR 404 6 GPM GPM YP 14 POTASSIUM CHLORIDE 20 644 PSI PSI GELS 5/7/8 FLOWZAN 8 106 BTMS UP MIN BTMS UP MIN API FLUID LOSS 9.8 PAC 41 TOT CIR MIN TOT CIR MIN CAKE APH/HT 1/ CF-DESCO II 10 40 AVDP: AVDP: SOLIDS 5 MYACIDE GA25 2 AVDC: AVDC: OIL/WATER 1/94 GEL-X 17 AVDC: AVDC: SAND .2 CITRIC ACID/SAFE CARB 120 557 DRILL STRING&HYDRAULICS PH 9 RESINEX 74 STRING WT. WOB Pf/Mf .10/1.00 CAUSTIC SODA 19 PICK UP RPM CHLORIDES 20000 SODIUM BICARBONATE/mrtabisulf 25 47 SLACK OFF TFA CA 100 BARITE/NUT PLUG/G SEAL 161 353 MAX PULL HSP VOL.PIT-(BBL) 526 LIQUIDS 2207 ECD PRESS DROP HOLE-(BBL) 1034 SOLIDS (BBLS hauled by AIMM) 500.9 3424.5 DCOD JET VEL API SCREEN 4-200's Daily Mud Cum. 844.9 11264.5 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description IDetail I Daily I Cumulative 6:00 8:30 2.50 R/D Weatherford csg equipment.Prep&R/U for cement RU/RD 4.00 119.00 R/U cement head Drilling 63.50 8:30 12:30 4.00 Circulate at 101gpm,280psi.SLB down w/computer problem Service/Repair Rig 3.00 12:30 12:45 0.25 Test lines to 4000 psi and pump 36 bbls of mud push,5bpm Surveys 0.00 12:45 13:45 1.00 Pump 235 bbls lead cmnt, 12ppg,4-5bpm,800psi Tripping 54.50 13:45 14:15 0.50Pump s tail cmnt at 14ppg,5bpm Change BHA 3.00 14:15 15:45 1.50 Release DV plug,displace w/576 bbls mud,9.0ppg,6bpm Casing Crew 2.50 2.50 Bump plug at 576 bbls,7612stks CEMENT IN PLACE 15:45 Cementing Crew 9.50 9.50 15:45 17:15 1.50 Circulate 259 bbls 9.0 ppg mud through opened DV collar Logging 0.00 17:15 17:30 0.25 Pump 36 bbls of 10.2 ppg Mudpush,5bpm,648 psi NU/ND Test 4.00 4.00 17:30 19:30 2.00 Pump 212 bbls of 12 ppg-2nd Stage cement,5bpm,650psi DST/Core 0.00 Drop closing plug,displace w/9.0 ppg mud,bump plug at Well Control 0.00 3440 stks,259 bbls and hold 5 min at 2113 psi.Cement in WOC 0.00 place at 19:13 hours.Bleed off pressure and R/D cmnt head Safety Meetings 0.00 19:30 22:00 2.50 R/D SLB,cement equip,flush stack,blow down lines P/U running tool and land packoff,set L/D screws&test to 3000 psi for 15 minutes.Test good.R/D test equipment. 22:00 0:00 2.00 Change rams F/9 5/8 to 5 X 7 Var Rams 0:00 3:00 3.00 R/D casing elevators,bales,stabbing board,cement head, and clear rig floor 3:00 4:00 1.00 Change out top drive saver sub 0.00 4:00 6:00 2.00 R/U to test 5 x 7 Var rams,test with 5"and 7"test joints. Circ/Other 4.00 30.00 24.00 TOTAL 24.00 289.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH ITOTAL LENGTH 1 8 1/2"HCR503ZX Bit - 4 1/2 Reg P HCC 8 1/2 - - - 1.07 1.07 2 Motor Steerable 1.0 Degree 4 1/2 Reg B 4 1/2 H90 B BHI 6 3/4 8 3/8 1.71 23.10 24.17 3 NM Flex Pony 4 1/2 H90 P 4 1/2 H90 B BHI 6 3/4 2 13/16 2.23 9.20 33.37 4 NM String Stabilizer 4 1/2 H90 P 4 1/2 H90 B BHI 6 3/16 2 13/16 8 3/8 2.34 5.05 38.42 5 NM X-Over 4 1/2 H90 P 4 1/2 IF B BHI 6 3/4 2 3/4 2.84 41.26 6 Stop/On Track/Stab/BCPM 4 1/2 IF P T2 B BHI 7 8 3/8 1.45 33.15 74.41 7 ORD/CCN/Stop Sub T2 P 4 1/2 IF B BHI 6 3/4 2 1/2 8 3/8 2.50 19.73 94.14 8 NM Filter Sub 4 1/2 IF P 4 1/2 IF B BHI 6 7/8 2 13/16 5.29 99.43 9 NM X-Over 4 1/2 IF P 4 1/2 H90 B BHI 6 3/4 2 13/16 2.03 101.46 10 NMCSDP(Loading Sources) 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 13/16 6 3/8 2.20 30.15 131.61 11 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 5/16 1.97 29.26 160.87 12 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 1/8 2.71 30.00 190.87 13 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 9/16 1.95 30.34 221.21 14 X-Over Steel Sub 4 1/2 H90 P 4 1/2 IF B BHI 6 3/8 2 7/8 1.70 222.91 15 Well Commander 4 1/2 IF P 4 1/2 IF B MI Swaco 7 3 1/2 2.30 13.23 236.14 16 4-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 118.90 355.04 17 Jars 4 1/2 IF P 4 1/2 IF B Weatherford 6 1/4 2 1/4 1.69 31.67 386.71 18 19-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 566.84 953.55 BHA TOTAL LENGTH 953.55 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 3,625 Flow check on every connection Diesel Used Last 24 1,672 Welder installed starting head on CLU#1. Diesel Received 0 Cmt returns 1st stage;35bbls. Cmt returns 2nd stage; 143bbls,(contaminated mud&cmt) TOTAL DIESEL 1,953 PERSONNEL ON LOCATION COMPANY I NOTE 1 COUNT HOURS I TOTAL I COMPANY I NOTE COUNT I HOURS] TOTAL 1 Nabors Rig Crew 24 12.5 300 MI Mud Eng 2 12 24 PRA DSM/Geologist 3 24 72 BHI LWD LWD 2 12 24 PRA Safety 1 4 4 BHI Directional 2 12 24 Aimm Vac 8 12 96 FMC Well Head 1 12 12 CINGSA Conrad/Rick 1 2 2 MI Dewatering 2 12 24 Canrig Mud Logging 4 12 48 Davis Lynch Float Collar 1 12 12 SLB Cement 4 12 48 - TOTAL COUNT 51 TOTAL MAN HOURS 690 FROM TO LENGTH JOINT _ DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 Rat hole 7746.00 7744.00 2.00 _Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664A0 , 7662.30 2.10 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 _ 7621.10 41.20 _ 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 _ 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 2.30 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 _9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 RT to hanger Ili . CINGSA - DAILY DRILLING REPORT Date: 11/12/2011 Well Name CLU Storage 2 BHA#: 4 DSM Days: Steve Ratcliff Current Depth: 7756' Location: Kenai,AK Target 8832' Cell Phone: (907)230-9902 _ Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Rig Nabors Alaska-Rig 105 E DSM Stephen Ratcliff Contractor: Nights: __ Days Since13 Present Test casing at 3000 psi Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Scud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER 8 JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 3 8 1/2 HCC HCR503ZX 7114328 3x13 3x14 7756 -7756 #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68# J-55 BTC 2721' _ Schlumberger 1-Nov Intermediate 9 5/8 40# L-80 BTC 7746' _ Schlumberger 11-Nov Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.2 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE _ PZ-9 FUNNEL VIS 58 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 44/32 KLA-GUARD 12 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 27/22 LOTORQ/776 3136 SPM 110 SPM 110 R6/R3 12/10 ASPHASOLSUPREME 147 GPS 3.18 GPS 3.18 Pv 12 CONQOR 404 6 GPM 330 GPM 330 YP 20 POTASSIUM CHLORIDE 26 670 PSI 1100 PSI 1100 GELS 12/16/18 FLOWZAN 5 111 BTMS UP MIN BTMS UP MIN API FLUID LOSS 6 PAC 2 43 TOT CIR MIN TOT CIR MIN CAKE APH/HT 1/ CF-DESCO II 40 AVDP: AVDP: _ SOLIDS 4 MYACIDE GA25 2 AVDC: AVDC: OILJWATER 1/95 GEL-X 17 AVDC: AVDC: SAND .25 CITRIC ACID/SAFE CARE 150 707 DRILL STRING&HYDRAULICS PH 10 RESINEX 74 STRING WT. 86 WOB 20-Oct Pf/Mf .10/.85 CAUSTIC SODA 19 PICK UP 102 RPM 50 CHLORIDES 20000 SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF 80 TFA CA 180 BARITE/NUT PLUG/G SEAL 40 393 MAX PULL 102 HSP VOL.PIT-(BBL) 650 LIQUIDS 2207 ECD PRESS DROP HOLE-(BBL) 507 SOLIDS (BBLS hauled by AIMM) 21 3445.5 DCOD JET VEL API SCREEN 4-200's Daily Mud Cum. 244 11508.5 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours J Description I Detail I Daily I Cumulative 6:00 10:00 4.00 R/U and Test 5"&7"Var Rams at 250/2500 psi.R/D Test. RU/RD 119.00 10:00 11:30 1.50 L/D Test tools,pull test plug,install wear ring,B/D lines. Drilling 3.50 67.00 11:30 16:30 5.00 P/U BHA#4,orient mud motor,plug in/program LWD,load Service/Repair Rig 3.00 6.00 nuclear sources,p/u well commander. Surveys 0.00 16:30 17:30 1.00 RIH with HWDP to 953'. Tripping 4.50 59.00 17:30 18:30 1.00 RIH with DP F/953'to 1623'.P/U-67k,S/O-62k Change BHA 5.00 8.00 18:30 21:30 3.00 Slip and cut 200'of drilling line.Service rig. Casing Crew 2.50 21:30 22:30 1.00 Check LWD tools downhole,fill pipe,calibrate depth,check Cementing Crew 9.50 pulse,330gpm,650psi. Logging 0.00 22:30 1:00 2.50 RIH F/1623'-3465'to DV Collar NU/ND Test 5.50 9.50 1:00 1:45 0.75 Drill out DV collar F/3483'-3485',320gpm,50rpm, 1079psi DST/Core 0.00 1:45 4:30 2.75 Wash down F/3485-3505.Saw cement,took 10-20k#'s Well Control 0.00 F/3505-3730,RIH to F/3730-3905 w/o taking weight. WOC 0.00 4:30 5:30 1.00 Circ and condition mud to clean cement from hole. Safety Meetings 0.00 5:30 6:00 0.50 R/U and test casing at 3000 psi for 30 minutes. Circ/Other 2.50 32.50 24.00 SEE REMARKS&COMMENTS BELOW TOTAL 24.00 313.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 1 8 1/2"HCR503ZX Bit - 4 1/2 Reg P HCC 8 1/2 - - - 1.07 1.07 2 Motor Steerable 1.0 Degree 4 1/2 Reg B 4 1/2 H90 B BHI _ 6 3/4 8 3/8 1.71 23.10 24.17 3 NM Flex Pony 4 1/2 H90 P 4 1/2 H90 B BHI 6 3/4 2 13/16 2.23 9.20 33.37 4 NM String Stabilizer 4 1/2 H90 P 4 1/2 H90 B BHI _ 6 3/16 2 13/16 8 3/8 2.34 5.05 38.42 5 NM X-Over 4 1/2 H90 P 4 1/2 IF B BHI 6 3/4 2 3/4 2.84 41.26 6 Stop/On Track/Stab/BCPM 4 1/2 IF P 12 B BHI 7 8 3/8 1.45 33.15 74.41 7 ORD/CCN/Stop Sub T2 P 4 1/2 IF B BHI 6 3/4 2 1/2 8 3/8 2.50 19.73 94.14 8 NM Filter Sub 4 1/2 IF P 4 1/2 IF B BHI 6 7/8 2 13/16 5.29 99.43 9 NM X-Over 4 1/2 IF P 4 1/2 H90 B BHI 6 3/4 2 13/16 2.03 101.46 10 NMCSDP(Loading Sources) 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 13/16 6 3/8 2.20 30.15 131.61 11 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 5/16 1.97 29.26 160.87 12 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 1/8 2.71 30.00 190.87 13 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 9/16 1.95 30.34 221.21 14 X-Over Steel Sub 4 1/2 H90 P 4 1/2 IF B BHI 6 3/8 2 7/8 1.70 222.91 15 Well Commander 4 1/2 IF P 4 1/2 IF B MI Swaco _ 7 3 1/2 2.30 13.23 236.14 16 4-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 118.90 355.04 17 Jars 4 1/2 IF P 4 1/2 IF B Weatherford _ 6 1/4 2 1/4 1.69 31.67 386.71 18 19-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 566.84 953.55 BHA TOTAL LENGTH 953.55 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 1,953 _ Flow check on every connection Diesel Used Last 24 2,056 Saw cement below DV Collar from 3505'-3750'. Took weight, 10-20k pounds. Diesel Received, 6,830 Spill drill-35 sec. TOTAL DIESEL 6,727 PERSONNEL ON LOCATION - COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 - MI Swaco Mud Eng 2 12 24 PRA DSM/Geologist 3 24 72 MI Swaco Dewatering 2 12 24 PRA Safety 1 4 4 BHI Directional 2 12 24 Aimm Vac 8 12 96 BHI LWD 2 12 24 CINGSA _ Conrad/Rick 1 2 2 _ 0 Canrig Mud Logging _ 4 12 48 0 0 - TOTAL COUNT 49 TOTAL MAN HOURS 618 FROM TO LENGTH JOINT DESCRIPTION G/L _ 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 I 7746.00 10.00 Rat hole 7746.00 7744.00 2.00 Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 7662.30 2.10 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 _ 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 _ 3483.40 2.30 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 RT to hanger CIN GSA - DAILY DRILLING REPORT Date: 11/13/2011 Well Name CLU Storage 2 BHA#: 4 DSM Days: Steve Ratcliff Current Depth: 8577 Location: Kenai,AK Target 8577 Cell Phone: (907)230-9902 Depth: • Ftg/24hrs. 821 Field/Pool: Cannery Loop/Sterling C ig Contractor: Nabors Alaska-Rig 105 E DSM Stephen Ratcliff Days Since14 Present Circulate bottoms up from 7744' Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Spud Operation DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FTIIR 3 8 1/2 HCC HCR503ZX 7114328 3x13 3x14 7756 8577 821 #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68# J-55 BTC _ 2721' Schlumberger 1-Nov Intermediate 9 5/8 40# L-80 _ BTC 7746' Schlumberger 11-Nov Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative . PUMP MANF Gardner Denver/PUMP MANF Gardner Denver WEIGHT 9.1 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 45 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 37/27 KLA-GUARD _ 4 16 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 22/16 LOTORQ/776 3136 SPM 122 SPM 122 R6/R3 6/5 ASPHASOL SUPREME 147 GPS 3.18 GPS 3.18 PV 10 CONQOR 404 2 8 GPM 380 GPM 380 YP 17 POTASSIUM CHLORIDE 25 695 PSI 1208 PSI 1208 GELS 6/9/11 FLOWZAN _ 14 125 BTMS UP MIN 44.2 BTMS UP MIN 44.2 API FLUID LOSS 6.8 PAC _ 8 51 TOT CIR MIN 133.3 TOT CIR MIN 133.3 CAKE APH/HT 1/ CF-DESCO II 40 AVDP: 30 AVDP: ..30 SOLIDS 4.5 MYACIDE GA25 1 3 AVDC: 355.40 AVDC: 355.40 OIL/WATER 2/94 GEL-X 17 _ AVDC: - AVDC: - SAND .5 CITRIC ACID/SAFE CARB 71 778 DRILL STRING&HYDRAULICS PH 10.5 RESINEX 25 99 STRING WT. 120 WOB 12,000 Pf/Mf .15/2.20 CAUSTIC SODA 19 PICK UP 180 RPM 90 CHLORIDES 21000 SODIUM BICARBONATE/mrtabisulfl 47 _ SLACK OFF 78 TFA - CA 550 BARITE/NUT PLUG/G SEAL 6 399 MAX PULL 180 HSP 40 VOL.PIT-(BBL) 680 LIQUIDS 2207 • ECD 9.63 PRESS DROP 178 HOLE-(BBL) 549 SOLIDS (BBLS hauled by AIMM) 180.8 3626.3 DCOD 5 JET VEL 148 API SCREEN 4-200's Daily Mud Cum. 336.8 11845.3 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 6:30 0.50 R/U and test casing at 3000 psi for 30 minutes. RU/RD 119.00 6:30 10:30 4.00 RIH F!7650' Drilling 11.50 78.50 10:30 11:30 1.00 Tag cement at 7656 and wash down to Float Collar Service/Repair Rig 6.00 Tag float collar at 7657'and drill out. Good cement. Surveys 0.00 Tag float shoe at 7740'. 400gpm, 1200psi,60rpm, Tripping 7.00 66.00 WOB-5-10k,P/U-150k,S/O-95k,Rot-120k. Good cement Change BHA 8.00 11:30 12:00 0.50 Wash down F/7746-7756&drill F/7756-7777 for FIT test. Casing Crew 2.50 12:00 13:00 1.00 Circ&condition @ 7776',400gpm, 1200psi,46rpm Cementing Crew 9.50 13:00 13:30 0.50 Pull into casing and perform FIT Test.Pump 1/2 bpm.3 bbls Logging 0.00 broke down formation at 467 psi-EMW= 11.2ppg. NU/ND Test 9.50 13:30 14:30 1.00 Pump 38 bbl,9.4#Lost Circulation pill @ 7746'. DST/Core 0.00 14:30 15:00 0.50 Perform 2nd FIT Test @ 1/2 bpm to 650 psi,EMW`11.81ppg Well Control 0.00 15:00 1:30 10.50 Drill ahead F/7776-8577'TD,70-90rpm, 15-18 tq, 12k-wob, WOC 0.00 P/U-180k,S/O-78k,Rot-120k,ECD=9.48-10.13ppg. Safety Meetings 0.00 1:30 2:30 1.00 Circulate bottoms up and prepare to pump back to shoe. _Drilling Cement 1.50 0.00 2:30 4:00 1.50 Pump out hole F/8577'-8089'.Work tight spot at 8090-8085 4:00 5:30 1.50 B/R F/8089'-7744',70rpm, 1143psi,112spm,360gpm 5:30 6:00 0.50 Circulate bottoms up and prepare to POH. Circ/Other 4.00 36.50 24.00 SEE REMARKS&COMMENTS BELOW TOTAL 24.00 335.50 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN 1 CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 1 8 1/2"HCR503ZX Bit - 4 1/2 Reg P HCC 8 1/2 - - 1.07 1.07 2 Motor Steerable 1.0 Degree 4 1/2 Reg B 4 1/2 H90 B BHI 6 3/4 _ 8 3/8 1.71 23.10 24.17 3 NM Flex Pony 4 1/2 H90 P 4 1/2 H90 B BHI 6 3/4 2 13/16 2.23 9.20 33.37 4 NM String Stabilizer 4 1/2 H90 P 4 1/2 H90 B BHI 6 3/16 2 13/16 8 3/8 2.34 5.05 38.42 5 NM X-Over 4 1/2 H90 P 4 1/2 IF B BHI 6 3/4 2 3/4 2.84 41.26 6 Stop/On Track/Stab/BCPM 4 1/2 IF P T2 B BHI 7 8 3/8 1.45 33.15 74.41 7 ORD/CCN/Stop Sub T2 P 4 1/2 IF B BHI 6 3/4 2 1/2 8 3/8 2.50 19.73 94.14 8 NM Filter Sub 4 1/2 IF P 4 1/2 IF B BHI 6 7/8 2 13/16 5.29 99.43 9 NM X-Over 4 1/2 IF P 4 1/2 H90 B BHI 6 3/4 2 13/16 2.03 101.46 10 NMCSDP(Loading Sources) 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 13/16 6 3/8 2.20 30.15 131.61 11 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 5/16 1.97 29.26 160.87 12 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 1/8 2.71 30.00 190.87 13 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 9/16 1.95 30.34 221.21 14 X-Over Steel Sub 4 1/2 H90 P 4 1/2 IF B BHI 6 3/8 2 7/8 1.70 222.91 15 Well Commander 4 1/2 IF P 4 1/2 IF B MI Swaco 7 3 1/2 2.30 13.23 236.14 16 4-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 118.90 355.04 17 Jars 4 1/2 IF P 4 1/2 IF B Weatherford 6 1/4 2 1/4 1.69 31.67 386.71 18 19-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 566.84 953.55 BHA TOTAL LENGTH 953.55 REMARKS&COMMENTS DIESEL No accidents or spills. Fire drill CRT 35 sec. Diesel on Location day before 6,727 Flow check on every connection Diesel Used Last 24 1,443 Geologist called TD at 8577'MD,5110'TVD.Projected survey @ 8577'=78.96 inc.&260.70 azm Diesel Received 0 Perform FIT Test @ 1/2 bpm to 650 psi,EMW-11.81 ppg TOTAL DIESEL 5,284 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Swaco Mud Eng 2 12 24 PRA DSM/Geologist 3 24 _ 72 MI Swaco Dewatering 2 12 24 PRA Safety 1 1 1 BHI Directional 2 12 24 Aimm Vac 4 12 _ 48 BHI LWD 2 12 24 CINGSA Conrad/Rick 1 0 0 0 Canrig Mud Logging 4 12 48 0 0 - TOTAL COUNT 45 TOTAL MAN HOURS 565 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 Rat hole 7746.00 7744.00 2.00 Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 7662.30 2.10 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 2.30 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 RT to hanger CINGSA - DAILY DRILLING REPORT Date: 11/14/2011 Well Name CLU Storage 2 BHA#: 4 DSM Days: Steve Ratcliff Current Depth: 8577 Location: Kenai,AK Target 8577 Cell Phone: (907)230-9902 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Contractor Nabors Alaska-Rig 105 E N�ahM: Stephen Ratcliff Days Since15 Present Make up BHA for clean out run Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Soud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 3 8 1/2 HCC HCR503ZX 7114328 3x13 3x14 7756 8577 821 -3-B1-G-X-1-LT.1 6.5 126.31 CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68# J-55 BTC 2721' Schlumberger 1-Nov Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov Liner Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily [Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 46 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 36/26 KLA-GUARD 16 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 20/13 LOTORQ/776 3136 SPM _ - SPM - R6/R3 5/4 ASPHASOL SUPREME 147 GPS - GPS - PV 10 CONQOR 404 8 GPM GPMYP 16 POTASSIUM CHLORIDE 695 PSI - PSI - GELS 5/8/9 FLOWZAN 2 127 BTMS UP MIN . 44.2 BTMS UP MIN 44.2 API FLUID LOSS 7 PAC 51 TOT CIR MIN _ 133.3 TOT CIR MIN 133.3 CAKE APH/HT 1/ CF-DESCO II 40 AVDP: AVDP: SOLIDS 4.5 MYACIDE GA25 3 AVDC: _ AVDC: OIL/WATER 2/94 GEL-X 17 AVDC: AVDC: SAND .25 CITRIC ACID/SAFE CARB 6 784 DRILL STRING&HYDRAULICS PH 10.2 RESINEX 99 STRING WT. _ 120 WOB - Pf/Mf .10/2.10 CAUSTIC SODA 19 PICK UP 180 RPM - CHLORIDES 21000 SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF 78 TFA - CA 480 BARITE/NUT PLUG/G SEAL 39 438 MAX PULL 180 HSP - VOL.PIT-(BBL) 378 LIQUIDS 2207 ECD - PRESS DROP_ - HOLE-(BBL) 625 SOLIDS (BBLS hauled by AIMM) 136.3 3762.6 DCOD 5 JET VEL - API SCREEN 4-200's Daily Mud Cum. 183.3 12028.6 ACTIVITY SUMMARY I TIME SUMMARY Start f Finish I Hours I Description (Detail I Daily I Cumulative 6:00 7:30 1.50 Circulate bottoms up and prepare to POH for CBL wireline. RU/RD 119.00 7:30 13:30 6.00 POH for CBL Wireline F/7780'-953' Drilling - 78.50 13:30 16:00 2.50 L/D HWDP,Jars,well commander Service/Repair Rig 6.00 16:00 20:00 4.00 L/D BHA#4,LWD/MWD,unload nuclear sources,clear floor Surveys 0.00 20:00 20:30 0.50 _Stage 7"handling equipment and tongs on rig floor Tripping 10.00 76.00 20:30 23:00 2.50 R/U Baker Atlas CBL wireline,PJSM,pick up CBL tools Change BHA 4.00 12.00 23:00 1:15 2.25 RIH with wireline to 7340'.Make 4 attempts to get to shoe Casing Crew 0.50 3.00 at 7746'.RIH to 7362'and record up. Cementing Crew 9.50 1:15 3:30 2.25 Wireline log F/7362'to 5000'. POH F/5000'to surface. Logging 8.00 8.00 3:30 4:30 _ 1.00 R/D B.A.Wireline tools.Found 5"X 5"aluminum junk from NU/ND Test 9.50 DV Collar in wireline tool. DST/Core 0.00 4:30 6:00 1.50 Pick up HWDP,jars,and M/U BHA for clean out run Well Control 0.00 WOC 0.00 Safety Meetings 0.00 Drillin. Cement 0.00 Circ/Other 1.50 38.00 24.00 SEE REMARKS&COMMENTS BELOW TOTAL 24.00 ' 359.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH 'TOTAL LENGTH 1 8 1/2"HCR503ZX Bit - 4 1/2 Reg P HCC 8 1/2 - - - 1.07 1.07 2 Motor Steerable 1.0 Degree 4 1/2 Reg B 4 1/2 H90 B BHI 6 3/4 8 3/8 1.71 23.10 24.17 3 NM Flex Pony 4 1/2 H90 P 4 1/2 H90 B BHI 6 3/4 2 13/16 2.23 9.20 33.37 4 NM String Stabilizer 4 1/2 H90 P 4 1/2 H90 B BHI 6 3/16 2 13/16 8 3/8 2.34 5.05 38.42 5 NM X-Over 4 1/2 H90 P 4 1/2 IF B BHI 6 3/4 2 3/4 2.84 41.26 6 Stop/On Track/Stab/BCPM 4 1/2 IF P T2 B BHI 7 8 3/8 1.45 33.15 74.41 7 ORD/CCN/Stop Sub T2 P 4 1/2 IF B BHI 6 3/4 2 1/2 8 3/8 2.50 19.73 94.14 8 NM Filter Sub 4 1/2 IF P 4 1/2 IF B BHI 6 7/8 2 13/16 5.29 99.43 9 NM X-Over 4 1/2 IF P 4 1/2 H90 B BHI 6 3/4 2 13/16 2.03 101.46 10 NMCSDP(Loading Sources) 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 13/16 6 3/8 2.20 30.15 131.61 11 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 5/16 1.97 29.26 160.87 12 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 1/8 2.71 30.00 190.87 13 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 9/16 1.95 30.34 221.21 14 X-Over Steel Sub 4 1/2 H90 P 4 1/2 IF B BHI 6 3/8 2 7/8 1.70 222.91 15 Well Commander 4 1/2 IF P 4 1/2 IF B MI Swaco 7 3 1/2 2.30 13.23 236.14 16 4-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 118.90 355.04 17 Jars 4 1/2 IF P 4 1/2 IF B Weatherford 6 1/4 2 1/4 1.69 31.67 386.71 18 19-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 566.84 953 55 BHA TOTAL LENGTH 953.55 REMARKS&COMMENTS DIESEL No accidents or spills. Hold BOP Test. SPR P-1 -53spm @ 360. Diesel on Location day before 5,284 Flow check on every connection Diesel Used Last 24 1,643 Geologist called TD at 8577'MD,5110'TVD.Projected survey @ 8577'=78.96 inc.&260.70 azm Diesel Received 0 Baker Atlas CBL Wireline tools reached depth of 7362' TOTAL DIESEL 3,641 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Swaco Mud Eng 2 12 24 PRA DSM 2 24 48 MI Swaco Dewatering 2 12 24 PRA Safety 1 1 1 BHI Directional 2 12 24 Aimm _ Vac 4 12 48 BHI LWD 2 12 24 CINGSA Conrad/Rick 1 0 0 Baker Atlas Wireline _ 2 6 _ 12 Canrig Mud Logging 4 12 _ 48 0 Weaver Trucking 1 1 1 - TOTAL COUNT 46 TOTAL MAN HOURS 554 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 Rat hole 7746.00 7744.00 2.00 Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 _ 7662.30 2.10 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 _ 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 2.30 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 _ 20.14 0.55 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 RT to hanger CINGSA - DAILY DRILLING REPORT Date: 11/15/2011 Well Name CLU Storage 2 BHA#: 5 DSM Days: Steve Ratcliff Current Depth: 8577 Location: Kenai,AK Target 8577 Cell Phone: (907)230-9902 Depth: . Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Rig Nabors Alaska-Rig 105 E DSM Stephen Ratcliff Contractor: Nights: , Days Since16 Present RIH with 7"Liner Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Spud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE I TOTAL HOURS FT/FIR 3 8 1/2 HCC HCR503ZX 7114328 3x13 3x14 8577 -8577 -3-13T-c-x-1-.T-To #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE Conductor: 20" 133# X-56 Welded 97' N/A July Surface: 13 3/8 68# J-55 BTC 2721' Schlumberger 1-Nov Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov Liner Tubing PUMP#1 IPUMP#2 (MUD PROPERTIES: (MUD ADDITIVES: I Daily 'Cumulative PUMP MANF Gardner Denver/PUMP MANF Gardner Denver WEIGHT 9.1 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 .FUNNEL VIS 47 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 38/27 KLA-GUARD 16 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 21/14 LOTORQ/776 3136 SPM SPM - R6/R3 5/4 ASPHASOL SUPREME 147 GPS GPS - PV 11 CONQOR 404 8 GPM - GPM - YP 16 POTASSIUM CHLORIDE 695 PSI - PSI - GELS 5/8/9 FLOWZAN 127 BTMS UP MIN 44.2 BTMS UP MIN 44.2 API FLUID LOSS 7.2 PAC 51 TOT CIR MIN 133.3 TOT CIR MIN 133.3 CAKE APH/HT 1/ CF-DESCO II 40 _ AVDP: AVDP: SOLIDS 4.5 MYACIDE GA25 _ 2 5 AVDC: AVDC: OIL/WATER 1/95 GEL-X 17 _ AVDC: AVDC: SAND .25 CITRIC ACID/SAFE CARE 784 DRILL STRING&HYDRAULICS PH 10 RESINEX 99 STRING WT. 115 WOB - Pf/Mf .10/1.85 CAUSTIC SODA 19 PICK UP 160 RPM - CHLORIDES 20000 SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF 75 TFA - CA 520 BARITE/NUT PLUG/G SEAL 50 488 MAX PULL 165 HSP - VOL.PIT-(BBL) 380 LIQUIDS 2207 ECD - PRESS DROP - HOLE-(BBL) 625 SOLIDS (BBLS hauled by AIMM) 121.5 3884.1 DCOD 5 JET VEL - API SCREEN 4-200's Daily Mud Cum. 173.5 12202.1 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 8:30 2.50 Pick up HWDP,jars,and M/U BHA for clean out run RU/RD 119.00 8:30 10:30 2.00 RIH W/clean out assembly F/403'-3270' Drilling 78.50 10:30 11:00 0.50 Circ&Cond,fill DP,Blow down top drive Service/Repair Rig 6.00 11:00 15:00 4.00 RIH F/3270'-8220'.Took 15k pounds at 7664',P/U-159k, Surveys 0.00 5/0-75k,took 20K#'s @ 8220'. Tripping 15.50 91.50 15:00 16:00 1.00 Wash down/ream F/8220'-8577',240 gpm,460 psi,60 rpm Change BHA 4.00 16.00 16:00 17:30 1.50 Circulate bottoms up at 8577',311 gpm,612 psi. Casing Crew 2.50 5.50 17:30 20:00 2.50 Pump out hole from 8577'-7746',209 gpm,320 psi Cementing Crew 9.50 20:00 2:00 6.00 POH on elevators F/7746'-405'. Logging 8.00 2:00 2:30 0.50 Lay down HWDP NU/ND Test 9.50 2:30 3:30 1.00 Lay down BHA,clear rig floor to run 7"liner DST/Core 0.00 3:30 5:30 2.00 R/U Weatherford for running 7"Liner,hold PJSM Well Control 0.00 5:30 6:00 0.50 Pick up 7"float shoe tract,7"liner,and RIH WOC 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ/Other 2.00 40.00 • 24.00 SEE REMARKS&COMMENTS BELOW TOTAL 24.00 383.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 1 8 1/2"HCR503ZX Bit - 4 1/2 Reg P HCC 8 1/2 - - - 1.07 1.07 2 Bit Sub w/Float Sub 4 1/2 Reg 4 1/2 H90 B BHI 6 7/8 _ 2 13/16 - 2.06 3.13 3 String Stabilizer 4 1/2 H90 P 4 1/2 H90 B BHI 6 3/16 2 7/8 8 3/8 2.23 3.79 6.92 4 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 1/2 1.95 30.34 37.26 5 NM String Stabilizer 4 1/2 H90 P 4 1/2 H90 B BHI 6 3/16 2 13/16 8 3/8 2.34 5.05 42.31 6 X-Over Steel Sub 4 1/2 H90 P 4 1/2 IF B BHI 6 3/8 2 7/8 1.70 44.01 7 1-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 29.60 73.61 8 Jars 4 1/2 IF P 4 1/2 IF B Weatherford 6 1/4 2 1/4 1.69 31.67 105.28 9 10-HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 298.11 403.39 403.39 403.39 _ 403.39 403.39 403.39 403.39 _ 403.39 403.39 403.39 BHA TOTAL LENGTH 403.39 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before_ 3,641 Flow check on every connection Diesel Used Last 24_ 1,965 Diesel Received_ 4,931 TOTAL DIESEL 6,607 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Swaco Mud Eng 2 12 24 PRA DSM 2 24 48 MI Swaco Dewatering 2 12 24 PRA Safety 1 1 1 BHI Directional 2 12 24 Aimm Vac 4 12 _ 48 BHI LWD 2 12 24 CINGSA _ Conrad/Rick 1 0 0 Baker Liner 2 5 10 Canrig Mud Logging 4 12 _ 48 0 Weatherford Casing 2 4 8 - TOTAL COUNT 46 TOTAL MAN HOURS 559 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 Rat hole 7746.00 7744.00 2.00 Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 7662.30 2.10 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 2.30 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 RT to hanger CINGSA - DAILY DRILLING REPORT Date: 11/16/2011 I Well Name CLU Storage 2 BHA#: DSM Days: Steve Ratcliff Current Depth: 8577 Location: Kenai,AK Target 8577 Cell Phone: (907)230-9902 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Convactor:ig Nabors Alaska-Rig 105 E DSM Nights: Stephen Ratcliff Days Since17 Present POH for Polished Mill Run Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Soud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY DATE I - Conductor: 20" 133# X-56 Welded 97' N/A July - Surface: 13 3/8 68# J-55 BTC 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tubing PUMP#1 IPUMP#2 (MUD PROPERTIES: MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 48 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 37/27 KLA-GUARD 16 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 20/14 LOTORQ/776 3136 SPM - SPM - R6/R3 5/4 ASPHASOL SUPREME 147 GPS - GPS - PV 10 CONQOR 404 8 GPM - GPM - YP 17 POTASSIUM CHLORIDE _ 695 PSI - PSI - GELS 5/8/10 FLOWZAN 127 BTMS UP MIN 44.2 BTMS UP MIN 44.2 API FLUID LOSS 7.4 PAC 51 TOT CIR MIN 133.3 TOT CIR MIN 133.3 CAKE APH/HT 1/ CF-DESCO II 40 AVDP: AVDP: SOLIDS 4.5 MYACIDE GA25 _ 5 AVDC: AVDC: OIUWATER 1/95 GEL-X 17 AVDC: AVDC: SAND .20 CITRIC ACID/SAFE CARE 784 DRILL STRING&HYDRAULICS (PH 9.9 RESINEX 99 STRING WT. - WOB - Pf/Mf .10/1.80 CAUSTIC SODA 19 PICK UP - RPM - CHLORIDES 20000 SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF - TFA - CA 480 BARITE/NUT PLUG/G SEAL 1 10 598 MAX PULL - HSP - VOL.PIT-(BBL) 485 LIQUIDS 2207 • ECD - PRESS DROP - HOLE-(BBL) 570 SOLIDS (BBLS hauled by AIMM) 3884.1 DCOD 5 JET VEL - API SCREEN 4-200's Daily Mud Cum. 110 12312.1 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description Detail I Daily I Cumulative 6:00 17:00 11.00 Pick up 7"float shoe tract,7"liner,and RIH to 7675',fill pipe RU/RD 2.00 121.00 every 20 stands,check for flow,P/U-155k,S/O-72k. Drilling 78.50 17:00 18:00 1.00 P/U Baker rotating cement head, 10'pup,&1 jt,M/U&L/D Service/Repair Rig 6.00 18:00 18:30 0.50 Circ&Condition,85spm,266gpm,300psi,P/U-152k, Surveys T 0.00 5/0-83k,Rot-112k, 10rpm,9-10K torque. Tripping 91.50 18:30 20:30 2.00 RIH F/7675'-8577',tag TD at 8577'. P/U 2'off TD to 8575'. Change BHA 16.00 20:30 22:00 1.50 P/U rotating head,R/U cement lines,secure head to rotate. Casing Crew 14.00 19.50 22:00 23:30 1.50 Circulate bottoms up and condition hole,PJSM for cement Cementing Crew _4.75 14.25 23:30 0:30 1.00 Pressure test SLB lines 1000/4800psi.Line up cementers Logging 8.00 0:30 0:45 0.25 Pump 32 bbls of 11.5 ppg Mud Push at 6 bpm NU/ND Test 9.50 0:45 1:00 0.25 Pump 42 bbls of 14 ppg Flexstone Cement at 4 bpm DST/Core 0.00 1:00 1:45 0.75 Drop wiper dart,displace 169 bbls of 9.1 ppg mud at 5 bpm Well Control _ 0.00 1:45 2:00 0.25 Bump plug to 2150 psi,bleed pressure,check floats,good, WOC 0.00 CEMENT IN PLACE AT 01:50 w/CEMENT ABOVE LINER Safety Meetings 0.00 2:00 2:15 0.25 R/U SLB,P/U to 65K,Pressure to 3916psi,hold 2 min, Drilling Cement _ 0.00 bleed off pressure to 500 psi,and release from liner _ 2:15 2:45 0.50 Set packer with 50K pounds and hold 2 minutes,packer set _ 2:45 4:00 1.25 Circulate bottoms up,cement returns at surface. 4:00 5:30 1.50 Rig down SLB,blow down lines,lay down rotating head 5:30 6:00 0.50 POH to make polished mill run Circ/Other 3.25 43.25 24.00 SEE REMARKS&COMMENTS BELOW TOTAL 24.00 407.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 6,607 Flow check on every connection Diesel Used Last 24 1,452 CEMENT IN PLACE AT 01:50 w/CEMENT ABOVE LINER Diesel Received 0 Cement returns at surface. TOTAL DIESEL 5,155 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 _ MI Swaco Mud Eng 2 12 24 PRA DSM 2 _ 24 48 MI Swaco Dewatering 2 12 24 PRA Safety 1 1 1 _ BHI Directional 1 6 6 Aimm Vac 4 _ 12 48 _ BHI LWD 0 0 0 CINGSA Conrad/Rick 1 0 0 Baker Liner 2 5 10 Canrig Mud Logging 2 12 24 Schlumberger Cement 4 12 48 Weatherford Casing 2 12 24 - TOTAL COUNT 45 TOTAL MAN HOURS 557 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 - Rat hole 7746.00 _ 7744.00 2.00 - Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 _ 7664.40 79.60 2 _9 5/8"40#L-80 BTC 7664.40 _ 7662.30 2.10 - 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 _ 3483.40 2.30 - _9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 _ 20.69 2.20 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 - 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 - RT to hanger CINGSA - DAILY DRILLING REPORT Date: 11/17/2011 Well Name U Storage 2 BHA#: DSM Days: John Nicholson Current Depth: 8577 Location: Kenai,AK Target 8577 Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Rig Nabors Alaska-Rig 105 E DSM Stephen Ratcliff Contractor:, Nights: Days Since18 Present RIH with Polish Mill Assembly Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Spud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS Fl/HR #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I - Conductor: 20" 133# X-56 Welded 97' N/A July - Surface: 13 3/8 68# J-55 BTC 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: MUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 46 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 37/26 KLA-GUARD 16 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 19/15 LOTORQ/776 3136 SPM - SPM - R6/R3 6/5 ASPHASOL SUPREME 147 GPS - GPS - PV 11 CONQOR 404 8 GPM - GPM - YP 15 POTASSIUM CHLORIDE 100 795 PSI - PSI - GELS 6/8/9 FLOWZAN 127 BTMS UP MIN 44.2 BTMS UP MIN . 44.2 API FLUID LOSS 7.4 PAC 51 TOT CIR MIN 133.3 TOT CIR MIN 133.3 CAKE APH/HT 1/ CF-DESCO II 40 AVDP: AVDP: SOLIDS 5 MYACIDE GA25 5 AVDC: _AVDC: _ OIL/WATER 1/94 GEL-X 17 AVDC: AVDC: SAND .25 CITRIC ACID/SAFE CARB 784 DRILL STRING&HYDRAULICS PH 9.7 RESINEX 99 STRING WT. - WOB - Pf/Mf .10/1.85 CAUSTIC SODA 19 PICK UP - RPM - CHLORIDES 20000 SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF - TFA - CA 400 BARITE/NUT PLUG/G SEAL 598 MAX PULL - HSP - VOL.PIT-(BBL) 279 LIQUIDS 2207 ECD - PRESS DROP - HOLE-(BBL) 594 SOLIDS (BBLS hauled by AIMM) 320.4 4204.5 DCOD 5 JET VEL - API SCREEN 4-200's Daily Mud Cum. 420.4 12732.5 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description Detail Daily I Cumulative 6:00 9:30 3.50 POH to make polished mill run F/7404'-5843'. RU/RD 121.00 9:30 10:30 1.00 Lay down Baker cement head Drilling 78.50 10:30 14:00 3.50 POH F/5843'to surface. Service/Repair Rig 2.50 8.50 14:00 14:30 _ 0.50 L/D Baker running tools Surveys 0.00 14:30 15:00 0.50 P/U 5"Test joint,prep for pulling wear ring Tripping 9.00 100.50 15:00 16:00 _ 1.00 Service top drive&clean,adjust back up wrench Change BHA 2.00 18.00 16:00 16:30 0.50 Remove wear bushing B.O.L.D.S.,Pull wear ring,install T.P. Casing Crew 19.50 16:30 17:30 1.00 P/U Test tools,R/U test equipment,fill stack&choke mnfld Cementing Crew 14.25 17:30 20:00 2.50 Test BOP's,Complete test#1,bleed off,controls not Logging 8.00 functioning BOP's,call electrician,DOWNTIME.Trouble NU/ND Test _ 10.50 20.00 shoot problem,found missing nut on solenoid air valve DST/Core 0.00 accuator,complete and return BOP's to service to test. Well Control 0.00 20:00 3:30 7.50 Test BOP's w/5"and 7"test joints,blow down top drive,work WOC 0.00 on test pump,repair and complete BOP test. Safety Meetings 0.00 3:30 4:00 0.50 Pick up Baker polish mill assembly. Drilling Cement 0.00 4:00 6:00 2.00 RIH with polish mill assembly, Circ/Other 43.25 24.00 ~SEE REMARKS&COMMENTS BELOW TOTAL 24.00 ' 431.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. GAUGE I NECK I LENGTH (TOTAL LENGTH 1 Pilot Mill(7.30"OD) - 3 1/2 IF Baker 5 19/20 2 1/4 - 0.60 1.80 1.80 1 Spacer Sub _ 3 1/2 IF 3 1/2 IF Baker 5 49/50 - - 1.85 3.65 1 X-Over 4 1/2"IF Box X 3 1/2"IF Pin 4 1/2 IF 4 1/2 IF Baker 6 1/4 - 1.10 4.75 1 Upper Casing Polish Mill(8.30"OD) 4 1/2 IF 4 1/2 IF Baker 6 7/25 - - 1.19 6.22 10.97 10.97 10.97 10.97 10.97 10.97 10.97 10.97 10.97 10.97 10.97 10.97 10.97 BHA TOTAL LENGTH 10.97 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 5,155 Diesel Used Last 24 1,413 Diesel Received 0 TOTAL DIESEL 3,742 PERSONNEL ON LOCATION COMPANY NOTE COUNT I HOURS TOTAL I COMPANY I NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Swaco Mud Eng 2 12 24 PRA DSM 2 24 48 MI Swaco Dewatering 2 12 24 PRA Safety 1 1 1 BHI Directional 0 0 0 Aimm Vac 1 4 4 BHI LWD 0 0 0 CINGSA Conrad/Rick 1 0 0 Baker Liner 2 6 12 Canrig Mud Logging 2 12 24 Schlumberger Cement 1 1 1 0 - TOTAL COUNT J 38 TOTAL MAN HOURS 438 FROM TO LENGTH JOINT DESCRIPTION III G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe • RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675) Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 - Rat hole 7746.00 7744.00 2.00 - Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 7662.30 2.10 - 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 2.30 - 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 - 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 - RT to hanger Liner FROM TO LENGTH JOINTS DESCRIPTION 8577.00 8575.00 2.00 - Rat hole 8575.00 8574.50 0.50 - 7"Float Shoe 8574.50 8495.52 79.02 2 7"26#L-80 Vam Top HC 8495.52 8495.00 0.50 - 7"Internal Landing Collar 8495.00 7652.40 842.60 21 7"26#L-80 Vam Top HC 7652.40 7637.80 14.54 - 7"26#L-80 Vam Top HC-Casing Pup 7637.80 7633.00 4.89 - 7"26#L-80 Vam Top HC-Casing Pup 7633.00 7628.00 4.92 - 7"Handling Pup-26#L-80 Vam Top HC 7628.00 7626.30 1.75 - 7"Casing Nipple 7626.30 7619.30 6.95 - 7"X 9.625"FlexLock Hanger 7619.30 7603.70 15.66 - ZXPN Packer CINGSA- DAILY DRILLING REPORT Date: 11/18/2011 Well Name .0 Storage 2 BHA#: DSM Days: John Nicholson Current Depth: 8577 Location: Kenai,AK Target 8577 Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C conRactor:ig Nabors Alaska-Rig 105 E NDSM : Stephen Ratcliff ghts - Days Since19 Present Run 7"Tubing Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Soud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS' FT/HR #DIV/0! CASING I SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH I CEMENT COMPANY 1 DATE 1 - Conductor: 20" 133# X-56 Welded 97' N/A July - Surface: 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 VAM 8575' _ Schlumberger 16-Nov - Tubing PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS 46 S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 37/26 KLA-GUARD 16 STOKE LNGTH 9 STOKE LNGTH9 R200/R100 19/14 LOTORQ/776 3136 SPM - SPM - R6/R3 5/4 ASPHASOL SUPREME 147 GPS - GPS - PV 1 1 CONQOR 404 8 GPM - GPM - YP 15 POTASSIUM CHLORIDE 200 995 PSI - PSI - GELS 6/8/8 FLOWZAN 127 BTMS UP MIN 44.2 BTMS UP MIN 44.2 API FLUID LOSS 7.5 PAC 51 TOT CIR MIN 133.3 TOT CIR MIN 133.3 CAKE APH/HT 1/ CF-DESCO II 40 AVDP: AVDP: SOLIDS 4.5 MYACIDE GA25 5 AVDC: AVDC: OIL/WATER 1/95 GEL-X 17 AVDC: AVDC: SAND .25 CITRIC ACID/SAFE CARE 784 DRILL STRING&HYDRAULICS PH 9.8 RESINEX 99 STRING WT. - WOB - Pf/Mf .10/1.90 CAUSTIC SODA 19 PICK UP - RPM - CHLORIDES 19000 SODIUM BICARBONATE/mrtabisulf 47 - SLACK OFF - TFA - CA 440 BARITE/NUT PLUG/G SEAL 100 698 MAX PULL - HSP - VOL.PIT-(BBL) 243 LIQUIDS 2207 ECD - PRESS DROP - HOLE-(BBL) 594 SOLIDS (BBLS hauled by AIMM) 126 4330.5 DCOD 5 JET VEL - API SCREEN 4-200's Daily Mud Cum. 426 13158.5 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description 'Detail I Daily I Cumulative 6:00 I 9:30 I 3.50 RIH W/ BOT 7"polish mill to top of ZXP liner top packer at RU/RD L 121.00 7603',Circ 1.5bbI per min,taq liner top and clean up PBR Drilling t 78.50 F/7603'-7611',tag up W/no go Service/Repair Rig 8.50 9:30 10:30 1.00 _Circ DS volume for Casing test Surveys 0.00 10:30 11:00 0.50 Test 9 5/8 casing and 7"liner 2500psi F/30min test good Tripping 15.50 116.00 11:00 12:30 1.50 Pump Dry job R/U to lay down drill pipe.B/D mud lines. Change BHA 0.50 18.50 12:30 0:30 12.00 POH lay down drill pipe F 7603'Clean pits for packer fluid Casing Crew 5.00 24.50 Mix KCL 350bbls total of 245jts L/D Cementing Crew 14.25 0:30 1:00 0.50 Remove wear bushing Logging 8.00 1:00 3:00 2.00 R/U long bales,R/U weatherford for running 7"tubing string NU/ND Test 0.50 20.50 3:00 6:00 3.00 Make up BOT 7"seal assembly RIH W 7'26#L-80 Vam top DST/Core 0.00 Tubing Well Control 0.00 WOC 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ/Other 2.50 45.75 24.00 SEE REMARKS&COMMENTS BELOW TOTAL 24.00 455.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH 'TOTAL LENGTH 0.00 0.00 0.00 0.00 0.00 0.00 • 0.00 • 0.00 • 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 3,742 Monitor well prior to POH L/D drill pipe Diesel Used Last 24 1,019 Cull out bad joints(hard banding) Total of 97 joints laid down. Diesel Received 0 TOTAL DIESEL 2,723 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Swaco Mud Eng 2 12 24 PRA DSM 2 24 48 MI Swaco Dewatering 2 12 24 PRA Safety 1 1 1 Baker Oil Tool Tubing 1 18 18 Aimm Vac 1 4 4 Weatherford Casing 2 12 24 CINGSA Conrad/Rick 1 0 0 Unique Tubing 1 6 6 Canrig Mud Logging 2 12 24 0 0 0 0 - TOTAL COUNT 39 TOTAL MAN HOURS 473 FROM TO LENGTH JOINT DESCRIPTION 1 G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 - Rat hole 7746.00 7744.00 2.00 - Float shoe-Davis Lynch 501 Down jet Float shoe _7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 7662.30 2.10 - 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 _ 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 2.30 - 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 _ 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 - 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 - RT to hanger Liner FROM TO LENGTH JOINTS DESCRIPTION 8577.00 8575.00 2.00 - Rat hole 8575.00 8574.50 0.50 - 7"Float Shoe 8574.50 8495.52 79.02 2 7"26#L-80 Vam Top HC 8495.52 8495.00 0.50 - 7"Internal Landing Collar 8495.00 7652.40 842.60 21 7"26#L-80 Vam Top HC 7652.40 . 7637.80 14.54 - 7"26#L-80 Vam Top HC-Casing Pup 7637.80 7633.00 4.89 - 7"26#L-80 Vam Top HC-Casing Pup 7633.00 7628.00 4.92 - 7"Handling Pup-26#L-80 Vam Top HC 7628.00 7626.30 1.75 - 7"Casing Nipple 7626.30 7619.30 6.95 - 7"X 9.625"FlexLock Hanger 7619.30 7603.70 15.66 - ZXP Packer CINGSA - DAILY DRILLING REPORT Date: 11/19/2011 Well Name .0 Storage 2 BHA#: DSM Days: John Nicholson Current Depth: 8577 Location: Kenai,AK Target 8577 Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Contractor: Nabors Alaska-Rig 105 E NghM: Stephen Ratcliff Days Since20 Present Pressure testing Tubing 3000psi Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Spud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I - Conductor: 20" 133# .. X-56 Welded _ 97' N/A July - Surface: 13 3/8 68# J-55 _ BTC Mod _ 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# _ L-80 BTC _ 7746' Schlumberger 11-Nov - Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tubing 7" 26 L-80 VAM 7604' N/A 19-Nov - PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.7 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 KLA-GUARD 16 STOKE LNGTH 9 STOKE LNGTH9 R200/R100 LOTORQ/776 3136 SPM - SPM - R6/R3 ASPHASOL SUPREME 147 GPS - GPS - PV CONQOR 404 8 GPM - GPM - YP POTASSIUM CHLORIDE 995 PSI - PSI - GELS FLOWZAN 127 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC 51 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT CF-DESCO II 40 AVDP: AVDP: SOLIDS MYACIDE GA25 5 AVDC: AVDC: OIUWATER GEL-X 17 AVDC: AVDC: SAND CITRIC ACID/SAFE CARB 784 DRILL STRING&HYDRAULICS PH RESINEX 99 STRING WT. - W0B - Pf/Mf CAUSTIC SODA 19 PICK UP - RPM - CHLORIDES 38500 SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF - TFA - CA BARITE/NUT PLUG/G SEAL 698 MAX PULL - HSP - VOL.PIT-(BBL) LIQUIDS 2207 ECD - PRESS DROP - HOLE-(BBL) SOLIDS (BBLS hauled by AIMM) 4330.5 DCOD 5 JET VEL - API SCREEN 4-200's Daily Mud Cum. 0 13158.5 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 19:00 13.00 Continue to run 7"26#L-80 yam top tubing F/1150'-7416' RU/RD 121.00 19:00 21:00 2.00 R/U control lines and install SSSV with two pups at 7424' Drilling 78.50 21:00 22:00 1.00 RIH to No-Go at 7604',set down 15k. Mark space out. Service/Repair Rig 8.50 22:00 1:00 3.00 L/D jts and pick up&M/U space out pups and joint,RIH.R/U Surveys 0.00 circulating assembly,B/D line,run control line Tripping 116.00 1:00 3:15 2.25 Reverse circulate 40 bbls of water followed by 486 bbls of Change BHA 18.50 8.7 ppg brine. Add 5 bbls of diesel and corrosion inhibitor Casing Crew 19.00 43.50 after displacing 290 bbls of brine. Cementing Crew 14.25 3:15 4:45 _ 1.50 Land 7"tubing and set lock down screws. Rig up for 30 Logging 8.00 minute pressure tests of annulus and tubing. NU/ND Test 2.75 23.25 4:45 6:00 1.25 Pressure test annulus to 1500 psi for 30 minutes and tubing DST/Core 0.00 to 3000 psi for 30 minutes. Well Control 0.00 WOC 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ/Other 2.25 48.00 • 24.00 SEE REMARKS&COMMENTS BELOW TOTAL 24.00 479.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 • 0.00 0.00 . 0.00 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 2,723 Jam all connections on 7"with Weatherford Diesel Used Last 24 1,450 Diesel Received 2,000 TOTAL DIESEL 3,273 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Swaco Mud Eng 2 12 24 PRA DSM 2 24 48 MI Swaco Dewatering 2 12 24 PRA Safety 1 1 1 Baker Oil Tool Tubing 1 24 24 Aimm Vac 1 4 4 Weatherford Casing 2 12 24 CINGSA Conrad/Rick 1 0 0 Unique Tubing 1 12 12 Canrig Mud Logging 2 12 24 0 0 0 0 - TOTAL COUNT 39 TOTAL MAN HOURS 485 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 - Rat hole 7746.00 7744.00 2.00 - Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 7662.30 2.10 - 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 2.30 - 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 - 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 - RT to hanger Liner FROM TO LENGTH JOINTS DESCRIPTION 8577.00 8575.00 2.00 - Rat hole 8575.00 8574.50 0.50 - 7"Float Shoe 8574.50 8495.52 79.02 2 7"26#L-80 Vam Top HC 8495.52 8495.00 0.50 - 7"Internal Landing Collar 8495.00 7652.40 842.60 21 7"26#L-80 Vam Top HC 7652.40 7637.80 14.54 - 7"26#L-80 Vam Top HC-Casing Pup 7637.80 7633.00 4.89 - 7"26#L-80 Vam Top HC-Casing Pup 7633.00 7628.00 4.92 - 7"Handling Pup-26#L-80 Vam Top HC 7628.00 7626.30 1.75 - 7"Casing Nipple 7626.30 7619.30 6.95 - 7"X 9.625"FlexLock Hanger 7619.30 7603.70 15.66 - ZXP Packer Tubing FROM TO LENGTH JOINTS DESCRIPTION 7604.00 - 7"Loc Seal Assembly 7604.00 7593.67 10.33 - 7"26#L-80 Vam Top HC-Casing Pup 7593.67 187.47 7406.20 184 7"26#L-80 Vam Top HC 187.47 182.52 4.95 - 7"26#L-80 Vam Top HC-Casing Pup 182.52 179.07 3.45 - 7"Vam Top-S.S.S.V.Nipple 179.07 174.21 4.86 - 7"26#L-80 Vam Top HC-Casing Pup 174.21 92.13 82.08 2 7"26#L-80 Vam Top HC 92.13 72.22 19.91 - 7"26#L-80 Vam Top HC-Casing Pup 72.22 70.05 2.17 - 7"26#L-80 Vam Top HC-Casing Pup 70.05 66.91 3.14 - 7"26#L-80 Vam Top HC-Casing Pup 66.91 25.53 41.38 1 7"26#L-80 Vam Top HC 25.53 23.33 2.20 - 7"26#L-80 Vam Top HC Pup Joint 23.33 22.55 0.78 - 7"26#L-80 Vam Top HC-Hanger 22.55 0.00 22.55 - RT to hanger CINGSA - DAILY DRILLING REPORT Date: 11/20/2011 Well Name .0 Storage 2 BHA#: DSM Days: John Nicholson Current Depth: 8577 Location: Kenai,AK Target 8577 Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C Contractor ig Nabors Alaska-Rig 105 E NdhM: Stephen Ratcliff Days Since21 Present Clean pits and prep for rig move Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Spud Operation DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I - Conductor. 20" 133# X-56 Welded 97' N/A July - Surface. 13 3/8 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' _ Schlumberger 11-Nov - _ Liner 7" 26 L-80 VAM 8575' Schlumberger 16-Nov - Tubing 7" 26 L-80 VAM 7604' N/A 19-Nov - PUMP#1 IPUMP#2 IIMUD PROPERTIES: IMUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.7 GEL(50 lb bag) 367 PUMP TYPE PZ-9 PUMP TYPE PZ-9 FUNNEL VIS S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 KLA-GUARD 16 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 LOTORQ/776 3136 SPM - SPM - R6/R3 ASPHASOL SUPREME 147 GPS - GPS - PV CONQOR 404 8 GPM - GPM - YP POTASSIUM CHLORIDE 995 PSI - PSI - GELS FLOWZAN 127 _ BTMS UP MIN - IBTMS UP MIN - API FLUID LOSS PAC 51 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT CF-DESCO II 40 AVDP: AVDP: SOLIDS •MYACIDE GA25 5 AVDC: AVDC: OIL/WATER GEL-X 17 AVDC: AVDC: SAND CITRIC ACID/SAFE GARB 784 DRILL STRING&HYDRAULICS PH RESINEX 99 STRING WT. - WOB - Pf/Mf CAUSTIC SODA 19 PICK UP - RPM - CHLORIDES 34900 SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF - TFA CA BARITE/NUT PLUG/G SEAL 698 MAX PULL - •HSP - VOL.PIT-(BBL) LIQUIDS 2207 ECD - PRESS DROP - HOLE-(BBL) SOLIDS (BBLS hauled by AIMM) 664 4994.5 DCOD 5 JET VEL - API SCREEN 4-200's Daily Mud Cum. 664 13822.5 ACTIVITY SUMMARY I TIME SUMMARY Start J Finish I Hours I Description (Detail I Daily I Cumulative 6:00 7:00 1.00 Complete testing 7"tubing 3000 psi 30 min.Test good. RU/RD 5.00 126.00 7:00 12:00 5.00 Set 7"BPV.Blow down mud lines R/D long bails and WF Drilling 78.50 casing tools.Clean out drip pan. Prep to nipple down BOP. Service/Repair Rig 8.50 Clean pits.Drain out mud pumps. Surveys 0.00 12:00 16:30 4.50 Nipple down BOP stack,remove from well head and cellar, Tripping 116.00 continue to clean pits. Change BHA 18.50 16:30 6:00 13.50 Nipple up well tubing bonnet and master valve.Remove BPV Casing Crew 43.50 pump out brine in tubing down to 30'and freeze protect with Cementing Crew 14.25 diesel. Set backflow pressure valve.Test wellhead to 5000 Logging 8.00 psi for 10 minutes.Test good.Install adapter spool with NU/ND Test 19.00 42.25 master valve and hammer up. R/D FMC,clear cellar area DST/Core 0.00 Clean pits and prep rig for rig move to CLU#1 Well Control 0.00 WOC 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ/Other 48.00 24.00 SEE REMARKS&COMMENTS BELOW TOTAL 24.00 503.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH 'TOTAL LENGTH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 2,311 Release Canrig mud loggers and Mi swaco mud engineers.Rig down units. Diesel Used Last 24 1,043 Reweld starting head ring on CLU-1. Load out 7"casing and liner tools,return to vendors. Diesel Received_ 0 Test starting ring weld to 500psi on CLU-1.Set starting head. TOTAL DIESEL 1,268 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Swaco Mud Eng 2 12 24 PRA DSM 2 24 48 MI Swaco Dewatering 2 12 24 PRA Safety 1 1 1 FMC Wellhead 1 12 12 Aimm Vac 2 12 24 0 0 CINGSA Conrad/Rick 1 0 0 0 0 Canrig Mud Logging 1 6 6 0 0 0 - TOTAL COUNT 36 TOTAL MAN HOURS 439 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' _ Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 - Rat hole 7746.00 7744.00 2.00 - Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 7662.30 2.10 - 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 2.30 - 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 - 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 - RT to hanger Liner FROM TO LENGTH JOINTS DESCRIPTION 8577.00 8575.00 2.00 - Rat hole 8575.00 8574.50 0.50 - 7"Float Shoe 8574.50 8495.52 79.02 2 7"26#L-80 Vam Top HC 8495.52 8495.00 0.50 - 7"Internal Landing Collar 8495.00 7652.40 842.60 21 7"26#L-80 Vam Top HC 7652.40 7637.80 14.54 - 7"26#L-80 Vam Top HC-Casing Pup 7637.80 7633.00 4.89 - 7"26#L-80 Vam Top HC-Casing Pup 7633.00 7628.00 4.92 _ - 7"Handling Pup-26#L-80 Vam Top HC 7628.00 7626.30 1.75 - 7"Casing Nipple 7626.30 7619.30 6.95 - 7"X 9.625"FlexLock Hanger 7619.30 _ 7603.70 15.66 - ZXP Packer Tubing FROM TO LENGTH JOINTS DESCRIPTION 7604.00 - 7"Loc Seal Assembly 7604.00 7593.67 10.33 - 7"26#L-80 Vam Top HC-Casing Pup 7593.67 187.47 7406.20 184 7"26#L-80 Vam Top HC 187.47 182.52 4.95 - 7"26#L-80 Vam Top HC-Casing Pup 182.52 179.07 3.45 - 7"Vam Top-S.S.S.V.Nipple 179.07 174.21 4.86 - 7"26#L-80 Vam Top HC-Casing Pup 174.21 92.13 82.08 2 7"26#L-80 Vam Top HC 92.13 72.22 19.91 - 7"26#L-80 Vam TopHC CasingPup - 72.22 70.05 2.17 - 7"26#L-80 Vam Top HC-Casing Pup 70.05 66.91 3.14 - 7"26#L-80 Vam Top HC-Casing Pup 66.91 25.53 41.38 1 7"26#L-80 Vam Top HC 25.53 23.33 2.20 - 7"26#L-80 Vam Top HC Pup Joint 23.33 22.55 0.78 - 7"26#L-80 Vam Top HC-Hanger 22.55 0.00 22.55 - RT to hanger CINGSA - DAILY DRILLING REPORT Date: 11/21/2011 Well Name SU Storage 2 BHA#: DSM Days: John Nicholson Current Depth: 8577 Location: Kenai,AK Target 8577 Cell Phone: (907)299-4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop/Sterling C ContRractor:ig Nabors Alaska-Rig 105 E °qhM: Stephen Ratcliff Days Since22 Present Final Report Move to CLU-1 Rig Phone: (907)398-3156 Cell Phone: (281)914-6250 Soud Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV/0! CASING I SIZE I WEIGHT I GRADE I THREAD I DEPTH I CEMENT COMPANY I DATE I - Conductor: 20" 133# X-56 Welded 97' N/A July - Surface: 13 3/8 _ 68# J-55 BTC Mod 2721' Schlumberger 1-Nov - Intermediate 9 5/8 40# L-80 BTC 7746' Schlumberger 11-Nov - Liner 7" _ 26 L-80 _ VAM 8575' Schlumberger 16-Nov - Tubing 7" 26 L-80 VAM 7604' 1 N/A 19-Nov - PUMP#1 IPUMP#2 IMUD PROPERTIES: IMUD ADDITIVES: I Daily Cumulative PUMP MANE Gardner Denver PUMP MANF Gardner Denver WEIGHT GEL(50 lb bag) 367 PUMP TYPE _ PZ-9 PUMP TYPE PZ-9 FUNNEL VIS S.ASH(50 lb bag) 65 LINER SIZE 6 LINER SIZE 6 R600/R300 KLA-GUARD 16 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 LOTORQ/776 3136 SPM - SPM - R6/R3 ASPHASOL SUPREME 147 GPS - GPS - PV CONQOR 404 8 GPM - GPM - YP POTASSIUM CHLORIDE 995 PSI - PSI - GELS FLOWZAN 127 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC 51 TOT CIR MIN - TOT CIR MIN - CAKE APH/HT CF-DESCO II 40 AVDP: AVDP: SOLIDS MYACIDE GA25 5 AVDC: AVDC: OIL/WATER GEL-X 17 AVDC: AVDC: SAND CITRIC ACID/SAFE CARB 784 DRILL STRING&HYDRAULICS PH RESINEX 99 STRING WT. - WOB - Pf/Mf CAUSTIC SODA 19 PICK UP - RPM - CHLORIDES SODIUM BICARBONATE/mrtabisulf 47 SLACK OFF - TFA - CA BARITE/NUT PLUG/G SEAL 698 MAX PULL - HSP - VOL.PIT-(BBL) LIQUIDS 2207 ECD - PRESS DROP - HOLE-(BBL) SOLIDS (BBLS hauled by AIMM) 4994.5 DCOD 5 JET VEL - API SCREEN Daily Mud Cum. 0 13822.5 ACTIVITY SUMMARY I TIME SUMMARY Start I Finish I Hours I Description (Detail I Daily I Cumulative 6:00 12:00 6.00 Complete cleaning of pits,release rig to CLU-1 RU/RD 6.00 132.00 12:00 hrs 11-20-11 Drilling 78.50 Release RIG to CLU-1 Service/Repair Rig 8.50 Surveys 0.00 Tripping 116.00 Change BHA 18.50 Casing Crew 43.50 Cementing Crew 14.25 Logging 8.00 NU/ND Test 42.25 DST/Core 0.00 Well Control 0.00 WOC 0.00 Safety Meetings 0.00 - Drilling Cement 0.00 Circ/Other 48.00 6.00 SEE REMARKS&COMMENTS BELOW TOTAL 6.00 509.50 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 BHA TOTAL LENGTH 0.00 REMARKS&COMMENTS DIESEL No accidents or spills Diesel on Location day before 2,311 Release Rig to CLU-1 Diesel Used Last 24, 1,043 Diesel Received 0 TOTAL DIESEL 1,268 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 0 PRA DSM 2 24 48 MI Swaco Dewatering 2 12 24 PRA Safety 1 1 1 0 0 Aimm Vac 2 12 24 0 0 0 0 0 0 0 0 0 - TOTAL COUNT 31 TOTAL MAN HOURS 397 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20"133#X-56 Welded Conductor Pipe RT 118 2719' BTC Mod 13 3/3 68#J-33 BTC-M Casing (float shoe @2719',fc @2675') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7756.00 7746.00 10.00 - Rat hole 7746.00 7744.00 2.00 - Float shoe-Davis Lynch 501 Down jet Float shoe 7744.00 7664.40 79.60 2 9 5/8"40#L-80 BTC 7664.40 7662.30 _ 2.10 - 9 5/8 BTC-Davis Lynch SB Float collar 7662.30 7621.10 41.20 1 9 5/8"40#L-80 BTC 7621.10 7601.30 19.80 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 7601.30 3485.70 4115.60 82 9 5/8"40#L-80 BTC 3485.70 3483.40 _ 2.30 - 9 5/8" L-80 BTC-Davis Lynch stage collar-type 777-hy 3483.40 22.89 3460.51 103 9 5/8"40#L-80 BTC 22.89 20.69 2.20 - 9 5/8"40#L-80 BTC-LTC PUP JOINT 20.69 20.14 0.55 - 9 5/8" L-80 BTC-Ict uh-a fluted hanger 20.14 0.00 20.14 - RT to hanger Liner FROM TO LENGTH JOINTS DESCRIPTION 8577.00 8575.00 2.00 - Rat hole 8575.00 8574.50 0.50 - 7"Float Shoe 8574.50 8495.52 79.02 2 7"26#L-80 Vam Top HC 8495.52 8495.00 0.50 - 7"Internal Landing Collar 8495.00 7652.40 842.60 , 21 7"26#L-80 Vam Top HC 7652.40 7637.80 14.54 - 7"26#L-80 Vam Top HC-Casing Pup 7637.80 7633.00 4.89 - 7"26#L-80 Vam Top HC-Casing Pup 7633.00 7628.00 4.92 - 7"Handling Pup-26#L-80 Vam Top HC 7628.00 7626.30 1.75 - 7"Casing Nipple 7626.30 7619.30 6.95 - 7"X 9.625"FlexLock Hanger 7619.30 7603.70 15.66 - ZXP Packer Tubing FROM TO LENGTH JOINTS DESCRIPTION 7604.00 - 7"Loc Seal Assembly 7604.00 , 7593.67 10.33 - 7"26#L-80 Vam Top HC-Casing Pup 7593.67 187.47 7406.20 184 .7"26#L-80 Vam Top HC 187.47 _ 182.52 4.95 - 7"26#L-80 Vam Top HC-Casing Pup 182.52 179.07 3.45 - 7"Vam Top-S.S.S.V.Nipple 179.07 174.21 4.86 - 7"26#L-80 Vam Top HC-Casing Pup 174.21 92.13 82.08 2 7"26#L-80 Vam Top HC 92.13 72.22 19.91 - 7"26#L-80 Vam To. 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Planning called for 75% Open-hole excess, based on the volume to surface on previous wells The hole was circulated with casing on bottom for 1 bottoms up. 35 bbls of spacer was pumped ahead of the cement. With approximately 212 bbls of Lead slurry pumped, spacer was seen at surface. Lead was continued for 97 bbls, and then shut down with 309 bbls total of 12.0 ppg lead slurry pumped. The volume indicates approximately 10% excess, or 16.3" average hole size. 63 bbls of 15.4 ppg Tail slurry were pumped. Approxoimately 120 bbls of lead was returned to surface. The cement job utilized an inner-string with a stab-in collar; the dart was bumped as expected. All of the float equipment functioned as expected. Drill out was accomplished without incident and the expected isolation was confirmed with a 15.0 ppg EMW FIT test. Costs were in-line with preliminary estimates. Intermediate Casing 7746' MD: The Intermediate Cement job was accomplished on 11-10-2011. The primary objective was to ensure zonal isolation from the shoe to 7045' with F1exSTONE slurry, to ensure a competent seal above the storage zone. The secondary objective was lead cement for the length of the casing, for isolation of minor gas-sands in the well, as well as protection of the casing for the life of the well. The cement job was done in two stages, with a DV tool at approximately 3483' MD. Pre-job planning called for 10% open-hole excess; this was increased to 15% based on losses while drilling and running casing. Full returns were established prior to cementing, CemNET* Fibers were added to the slurry at 1 lb/bbl to better insure the increased ECD from the cement would not induce losses. Prior to starting the job the Schlumberger recording computer lost communication with the pump. Troubleshooting occurred for approximately 2 hrs while the rig continued to circulate the well. The problem could not be resolved. The electoronics on the unit were still functional, density, rates, pressures and volumes were still available and could be monitored and recorded by hand.The critical parameter of pressure could be recorded on a chart recorder from the rig floor. The job proceeded as planned. 40 bbls of MUDPUSH II spacer, pumped with the rig pumps. 235 bbls of 12.0 ppg Lead slurry were pumped. 47 bbls of 14.0 ppg F1exSTONE Tail slurry was pumped. Schlumberger No losses occurred during the cement job. The plug was bumped as anticipated, and the stage collar opened successfully. An anullar volume from the stage collar to surface was pumped. There was approximately 42 bbls of contaminated mud/space/cement returned to surface while circulating at the DV tool. The second stage was pumped using 40 bbls of MUDPUSH II spacer, and 212 bbls of 12.0 ppg Lead slurry. The closing plug was dropped and the stage collar successfully closed. Mud contaminated with spacer and cement was reported at surface. Drill out was accomplished without incident, and a Leak-Off-Test performed indicating a 11.81 ppg EMW at leak-off A bond-log was run after the next hole interval had been drilled. Results were acceptable. Costs were hi her than relimina estimates due to the addition of CemNET to the 1St stage slurry ). Production Liner 8424'—7626' MD: Drilling in the Production was quick. The Liner was run and set, circulation was established with full returns. The Production Liner Cement job was accomplished on 11-16-2011. The primary objective was zonal isolation for the depleted gas-storage zone. Planned excess was 10%, plus 200' of slurry above the liner top. Again, Schlumberger failed to record the job due to a bad bus board, which was not available for replacement in time to make this job. Recording was by hand. 32 bbls of MUDPUSH II spacer 43 bbls of F1exSTONE slurry at 14.0 ppg were pumped. The DP wiper dart was dropped, displacement was as expected, the wiper dart sheared, and the plug was bumped. The liner hanger and packer were set. Circulated the long way on top of the liner, cement returns were seen on bottoms up. Liner and casing were pressure tested to 2500 psi. Costs were in-line with preliminary estimates. II CLU—STORAGE#2 Cementing Cost Total from field tickets Total Pre-drill estimated cost from a base well design Difference of MI 7% under pre-drill estimate The lower cost is primarily due to the optimized Surface casing Lead slurry volume, the shorter Production Liner, and efficiency of personell call-out. Schlumberger CLU-STORAGE #2: Cementing Lessons-Learned for future wells on the pad The use of CemNET in the 1st stage slurry for the Intermediate Casing, helped to prevent losses from reoccuring during cementing. If losses are occuring with casing on bottom for the next wells, CemNET should again be considered, even if losses are cured prior to beginning cement, as was the case here. The additional ECD created by the cement job can be sufficient to induce losses again. There is a short in the wiring from one of the pumps to the bus board in the electronics communication hub on the unit. This is preventing recording by a remote computer. Schlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 2 Surface Lead Field Blend Signatures Fluid No : PAK 11sfc4015 Client :CINGSA Location/Rig : Nabors 105 Date :Oct-31-2011 Well Name :CLU Storage 2 Field :Cannery Loop M.Schinnell Job Type 13 3/8"Surface Depth 2713.0 ft TVD 2409.0 ft BHST 90 degF BHCT 80 degF BHP 1152 psi Starting Temp. 80 degF Time to Temp. 00:10 hr:mn Heating Rate 0.00 degF/min Starting Pressure 500 psi Time to Pressure 00:10 hr:mn Schedule () Composition Slurry Density 12.00 lb/gal Yield 2.45 ft3/sk Mix Fluid 14.523 gal/sk Solid Vol. Fraction 20.743% Porosity 79.257% Slurry type Extended Code Concentration Sack Reference Component Blend Density Lot Number D929 94.00 lb of CEMENT Blend 197.27 lb/ft3 Fresh water 14.373 gal/sk Base Fluid D046 0.200%BWOC Antifoam TU1A0243A0 D020 3.000%BWOC Extender 08251121 D079 2.000%BWOC Extender 44210303A D110 0.150 gal/sk Retarder TU1G0167A1 Rheology Tem•eratu re 80 de•F 80 de•F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) i (deg) 300 58.0 58.0 58.0 88.0 88.0 88.0 200 47.0 45.0 46.0 87.0 91.0 89.0 100 42.0 41.0 41.5 86.0 88.0 87.0 +i) 60 41.0 41.0 41.0 85.0 87.0 86.0 c) J 30 39.0 40.0 39.5 81.0 84.0 82.5 E 6 27.2 37.1 32.2 34.2 50.4 42.3 B 3 15.7 26.3 21.0 14.7 37.5 26.1 7 10 sec Gel 20.8 deg-22.20 Ibf/100ft2 31.5 deg-33.62 Ibf/100ft2 , 10 min Gel 32.7 deg-34.90 Ibf/100ft2 35.1 deg -37.46 Ibf/100ft2 n Rheo.computed I Viscosity:21.088 cP Yield Point:35.47 lbf/100ft2 Viscosity:44.934 cP Yield Point:66.62 Ibf/100ft2 Thickenin• Time s Consistency Time a POD: 03:38 hr:mn 30 Bc 03:44 hr:mn 70 Bc 05:04 hr:mn 100 Bc 05:30 hr:mn Free Fluid 1.0 mL/250mL in 2 hrs At 80 degF and 45 deg incl Sedimentation : None Water Analysis CINGSA City Water Sep-20-2011 Chloride Calcium Magnesium <500 mg/L 0 mg/L 40 mg/L Page 1 a3o- N - _.. .._ _. -- - -- � a. a O N _ _ _ _ _0 _ d a. a CM CO T � • CO O U IOCY : CO y O a, a, LI U O CS CIO w, a CD CD I 1 I _ O M u] W O O 1 I I .- -1 tD d ' U + + I - O NN a) d •' y .- d C _ M Cn O E - . c c.., r, .--- 0 � - L .y I i CO O O N � 'w .7) u_ ad CO 1 O CC1 f0 0. a) —O z No L In CD N Cn LI- a) F h ` • co I— CL O _ _ __. _ .. _ __-- ____- _. _ _ _ --O • g • O • —M= a) E I- I - '- O M M R in Cri U U U U ! - CO CO CO m • O • O M COCl O^ O • . ._ _ ___ .__ _ —O N I O 7 r — 0 I I I • o L',.,? 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CO O CO m m -) CL Schlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 2 Surface Tail Field Blend Signatures Fluid No : PAK 11sfc4016 Client :CINGSA Location/Rig :Nabors 105 Date : Nov-01-2011 Well Name :CLU Storage 2 Field :Cannery Loop M.Schinnell Job Type 13 3/8"Surface Depth 2713.0 ft TVD 2409.0 ft BHST 90 degF BHCT 80 degF BHP 1152 psi Starting Temp. 80 degF Time to Temp. 00:05 hr:mn Heating Rate 0.00 degF/min Starting Pressure 500 psi Time to Pressure 00:05 hr:mn Schedule () Composition Slurry Density 15.40 lb/gal Yield 1.22 ft3/sk Mix Fluid 5.495 gal/sk Solid Vol. Fraction 39.769% Porosity 60.231 % Slurry type Conventional Code Concentration Sack Reference Component Blend Density Lot Number D929 94.00 lb of CEMENT Blend 197.27 lb/ft3 Fresh water 5.425 gal/sk Base Fluid D046 0.200%BWOC Antifoam TU1A0243A0 D065 0.400%BWOC Dispersant Y12212SCL D167 0.200%BWOC Fluid loss GBG0018466 D185 0.070 gal/sk Dispers.LT CAM14680108354 Rheology Tem•erature 80 de•F 80de!F (rpm) Up Down Average Up Down Average (deg) (deg) ! (deg) (deg) (deg) (deg) 300 73.0 73.0 73.0 88.0 88.0 88.0 200 57.0 60.0 58.5 76.0 81.0 78.5 100 30.0 34.0 32.0 63.0 58.0 60.5 CP 60 22.0 27.0 24.5 46.0 59.0 52.5 r 30 16.0 21.0 18.5 42.0 43.0 42.5 6 8.8 15.1 11.9 36.7 39.9 38.3 g 3 7.8 14.6 11.2 30.8 37.9 34.4 10 sec Gel 18.3 deg-19.53 Ibf/100ft2 37.8 deg-40.35 Ibf/100ft2 CD 10 min Gel 55.7 deg-59.45 Ibf/100ft2 33.2 deg -35.44 Ibf/100ft2 .n Rheo.computed I Viscosity:64.054 cP Yield Point: 11.71 Ibf/100ft2 I Viscosity:49.644 cP Yield Point:42.08 Ibf/100ft2 7 Thickenin• Time Z y Consistency Time m 30 Bc 02:48 hr:mn 70 Bc 07:11 hr:mn 100 Bc 08:23 hr:mn Free Fluid 1.4 mL/250mL in 2 hrs At 80 degF and 45 deg incl Sedimentation : None Fluid Loss API Fluid Loss 263 mL 48 mL in 4 min at 80 degF and 1000 psi Water Analysis CINGSA City Water Sep-20-2011 Chloride Calcium Magnesium <500 mg/L 0 mg/L 40 mg/L Page 1 LZ'LIE N co in 2 2 2 c441 CD 'I-I LO COO Cn • - _. _ _ _• I ._ 0 — LP) N 01 L0 CD 2 C O LL") a) I LU ^ L!? 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I I I I I I I I I I I I I I I I I I I I I I I I I I a' Z — O L CO u-, CD 0 c O 0) CO n0 CD Co M N , O O C C••) m 0 to y C 'O d C/) Y i CV 0\ O .s N (A)aln1eladwal O O m -0 + LL IL M `y N J („) c) CV a) m m Z o_ .> IIIIIIaIII � IIII � IIII � 111I � IIII � IIII � I111 � 1111 111 , C-) ., o ^ o d c CO O CO CO 'Cr N O CO CO C N O c m y °Q° °0' n E o 0 an N o 'E z- mHHHZ H 7 E (ui�oasoloiw)awi13isue11 0 o = = a) >_ = 0 0) C fn U _1 U N p N m co , E Schlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 2 Intermediate Lead Field Blend Signatures Fluid No : PAK 11int4014 Client :CINGSA Location/Rig : Nabors 105 Date : Nov-06-2011 Well Name :CLU Storage 2 Field :Cannery Loop Daniel Himel Job Type 9 5/8"Intermediate Depth 8753.0 ft TVD 5138.0 ft BHST 105 degF BHCT 85 degF BHP 2458 psi Starting Temp. 80 degF Time to Temp. 00:30 hr:mn Heating Rate 0.02 degF/min Starting Pressure 500 psi Time to Pressure 00:30 hr:mn Schedule () Composition Slurry Density 12.00 lb/gal Yield 2.45 ft3/sk Mix Fluid 14.523 gal/sk Solid Vol. Fraction 20.7% Porosity 79.3% Slurry type Conventional Code Concentration Sack Reference Component Blend Density Lot Number D929 94 lb of CEMENT Blend 197.27 lb/ft3 Fresh water 14.373 gal/sk Base Fluid D046 0.200%BWOC Antifoam TU1A0243A0 D020 3.000%BWOC Extender 44210303A D079 2.000%BWOC Extender 12087CM1 Gel D110 0.150 gal/sk Retarder TU1G0167A1 Rheology Tem•erature 80 de•F 85 de•F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 43.0 43.0 43.0 62.0 62.0 62.0 200 41.0 39.0 40.0 59.0 61.0 60.0 ;n 100 38.0 36.0 37.0 51.0 58.0 54.5 60 38.0 35.0 36.5 47.0 56.0 51.5 30 38.0 33.0 35.5 45.0 54.0 49.5 6 37.4 31.4 34.4 30.1 45.5 37.8 3 20.8 25.8 23.3 18.0 28.8 23.4 10 sec Gel 41 deg-43.33 Ibf/100ft2 27 deg-28.50 Ibf/100ft2 x 10 min Gel 73 deg-78.02 Ibf/100ft2 39 deg -42.05 Ibf/100ft2 0 Rheo.computed Viscosity:8.232 cP Yield Point:34.68 Ibf/100ft2 Viscosity: 14.200 cP Yield Point:49.15 Ibf/100ft2 -., Thickenin• Time Consistency Time 30 Bc 03:23 hr:mn 70 Bc 04:23 hr:mn 100 Bc 04:44 hr:mn Free Fluid Trace mL/250mL in 2 hrs At 80 degF and 45 deg incl Sedimentation: None Water Analysis Chloride Calcium Magnesium 67.00 mg/I 32.00 mg/I 16.00 mg/I Page 1 �, G) o_ N _8 � a < o, ,. 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(pd)amssa�d ❑ (.n a t E N LL o CV 0 a) .0 t w UI°O LO CI 1 1 1 I l I 1 I I I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 J Z �") Q N O CD I I I 11 11 � 1 11 11 1 11 C, � .. ^ „ 0 � Z C 0 In 0 In 0 In o In O u) o p o u, O^ • d a) O' l!) N 0 N- CO (N 0 N. U) N c 61 N a1 c N N N O a E • n •= 0 w In a, HH HZ y E (A)aJn1eJadwal O U H a C H N a o, C cn -U Cn 0 CC m m- 2 La-Luo, N O y 2 2 2 En O .- W N _ _ _ _ _ _O d d d O O O lA Q m O cn IOfI U ^ lPl N d. La = vv un - o o V fV O T xl y m m ^ ^ E m - c U t t O O C N N N N C ^ ^ ^ �r o E m V d U -O L d �//�� N Ll d N d co co O O m Z (n N N d -, L u: N O 1_ I- O_ I I I O _O M I I I M L 2 O y- 2 d VI m coIN, co E L O. _ co LO ~ p co Q Q •y y N L an O Z Z cod N O M M , • O u7 > C N VN M y y o oL L d d y CO O O O O O O ^ < d ' Lo O N N E 'y `r' o y O U y C CL LO m E ▪ 0 U U CO = U- O L] CO I - y OI d LO ^ 1 I I + C 1 1 ` O co N � C I 1 I I I I I 1 I I I I i i I 1 I I I I I I 00 O O O O O 0 + CO V 0 0 �0 N c a., (pd)y;6ual;s anissaJdwoo D O ., CO 4 I I I I I I I I I I I I I I I I I I I I I I I I - + co in O CD CONd N 0 CO LOO Loa' U m g ._ J M O y yC ,- p _ •- -0 N °: EN 1E8 • s H (�)a�n;e�adwal Z o u_ c.• O = a Q : tchIumberer Laboratory Cement Test Report Nabors 105 CLU Storage 2 Intermediate Stage 1 Tail Field Blend Signatures Fluid No : PAK 11int4013 Client :CINGSA Location/Rig : Nabors 105 Date : Nov-06-2011 Well Name :CLU Storage 2 Field :Cannery Loop Daniel Himel Job Type 9 5/8"Intermediate Depth 7680.0 ft TVD 4938.0 ft BHST 103 degF BHCT 85 degF BHP 2362 psi Starting Temp. 90 degF Time to Temp. 01:15 hr:mn Heating Rate -0.04 degF/min Starting Pressure 500 psi Time to Pressure 01:15 hr:mn Schedule () Composition Slurry Density 14.00 lb/gal Yield 1.29 ft3/sk Mix Fluid 4.099 gal/sk Solid Vol. Fraction 57.6% Porosity 42.4% Slurry type FIexSTONE Code Concentration Sack Reference Component Blend Density Lot Number CLU Flex 100 lb of BLEND Blend 136.78 Ib/ft3 Fresh water 4.089 gal/sk Base Fluid D046 0.200%BWOB Antifoam TU1H0300A0 D202 0.500%BWOB Dispersant 116529 D400 0.500%BWOB Gas Migratio 081811-01 D177 0.010 gal/sk Retarder OCT-31-2011 Rheology Tem.erature 80 de•F 85 de.F (rpm) Up Down Average , ! Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 129.0 129.0 129.0 133.0 133.0 133.0 200 100.0 90.0 95.0 102.0 93.0 97.5 CO 100 72.0 65.0 68.5 73.0 59.0 66.0 c1 60 57.0 48.0 52.5 58.0 40.0 49.0 - 30 34.0 28.0 31.0 34.0 29.0 31.5 2 6 20.1 16.4 18.3 18.7 16.9 17.8 CS 3 15.1 13.6 14.4 15.2 13.7 14.4 N3 10 sec Gel 15 deg-17.22 Ibf/100ft2 14 deg-16.27 Ibf/100ft2 10 min Gel 29 deg-34.44 Ibf/100ft2 22 deg -26.37 Ibf/100ft2 11 Rheo.computed Viscosity:226.887 cP Yield Point:29.68 Ibf/100ft2 Viscosity:243.398 cP Yield Point:26.09 Ibf/100ft2 C° Thickenin• Time 2) Fli Consistency Time Remark:Thickening time includes batch time 30 Bc 01:32 hr:mn 70 Bc 04:32 hr:mn 100 Bc 05:08 hr:mn Batch Mix Time: 01:00 hr:mn at 90 degF Free Fluid 0.0 mL/250mL in 2 hrs At 80 degF and 45 deg incl Sedimentation: None Fluid Loss API Fluid Loss 10 mL 5 mL in 30 min at 85 degF and 1000 psi Water Analysis Chloride Calcium Magnesium 67.00 mg/I 32.00 mg/I 16.00 mg/I Page 1 a) CD }� • <c m - - -- -- - _ - _ _. _ .. __O ri . o Q) LOQ •V/ CA C) CO CD 4 O N L a 2 la U ra Ln of w, . 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O) 1 O 0O 01I O a v — I O cr 0 C LC) 1 1 1 1 1 11 1 1 I i O LQ N O1 1 1 0 1 1 1 1 0 1 1 1 1 C. 0 O1 1 I O O 1 0 10 1 1 1 1 1 1 01 0 1 0 N O COD CD V 0 0 COO CD V 00 c) E LI) V) (isd)436uaJlg enisse�dwo� a co co o n o 'v Q U 1 , I l i I l 1 1 1 I 1 1 1 1 I 1 1 1 1 I l I l i l 1 r . 1 I l I l t l 1 1 1 1 N = c d dE i0 CO N L co Tr N O CO O V' N O m m N o Cn M c O N �)Z < o H (ui/oasaoiw)awil;lsue�l D ? z oo LL u_ C 0 .N O I I I i O I I I I O I I I 1 O 1 I 1 1 O I 1 I 1 O I 1 I I O CJ.) (-) ° N -O O Z > M E aN) N 0 CO CO V' N c 0) it 0. E • E > m y E E (�)2Jf11BJOdU Oj O ° H o. c y U N - rn C co U _I U CO 0 Cn CO CO O Schlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 2 7in Liner Field Blend Signatures Fluid No : PAK 111nr4013 Client :CINGSA Location/Rig : Nabors 105 Date : Nov-09-2011 Well Name :CLU Storage 2 Field :Cannery Loop Daniel Himel Job Type 7"Production Depth 7480.0 ft TVD 4893.0 ft BHST 106 degF BHCT 94 degF BHP 2290 psi Starting Temp. 90 degF Time to Temp. 01:44 hr:mn Heating Rate 0.04 degF/min Starting Pressure 500 psi Time to Pressure 01:44 hr:mn Schedule () Composition Slurry Density 14.00 lb/gal Yield 1.29 ft3/sk Mix Fluid 4.099 gal/sk Solid Vol. Fraction 57.6% Porosity 42.4% Slurry type FIexSTONE Code Concentration Sack Reference Component Blend Density Lot Number CLU Flex 100 lb of BLEND Blend 136.78 Ib/ft3 Fresh water 4.089 gal/sk Base Fluid D046 0.200%BWOB Antifoam TU1A0243A0 D202 0.500%BWOB Dispersant 91845-4 D400 0.500%BWOB Gas Migratio 06-27-09-06 D177 0.010 gal/sk Retarder Feb-10-2011 Rheology Tem•erature 80 de•F 94 de•F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) i (deg) (deg) (deg) 300 136.0 136.0 136.0 140.0 140.0 140.0 200 103.0 105.0 104.0 100.0 94.0 97.0 ,n 100 73.0 68.0 70.5 71.0 64.0 67.5 60 59.0 41.0 50.0 45.0 37.0 41.0 30 35.0 29.0 32.0 31.0 25.0 28.0 3- 6 18.5 15.5 17.0 15.2 11.9 13.5 Cr 3 14.5 13.4 13.9 12.0 9.8 10.9 0 10 sec Gel 15 deg-17.58 Ibf/100ft2 12 deg- 14.13 Ibf/100ft2 tIa 10 min Gel _ 30 deg-36.10 Ibf/100ft2 19 deg -22.92 Ibf/100ft2 "0 Rheo.computed Viscosity:251.910 cP Yield Point:27.64 Ibf/100ft2 Viscosity:275.639 cP Yield Point: 17.70 Ibf/100ft2 m Thickenin• Time 5 Consistency Time Remark:Thickening time includes batch time Fluid Loss 30 Bc 00:03 hr:mn API Fluid Loss 22 mL 70 Bc 06:23 hr:mn 11 mL in 30 min at 94 degF and 1000 psi 100 Bc 06:54 hr:mn Batch Mix Time: 01:00 at 90 degF Water Analysis hr:mn Chloride Calcium Magnesium Free Fluid 67.00 mg/I 32.00 mg/I 16.00 mg/I Trace mL/250mL in 2 hrs At 80 degF and 45 deg incl Sedimentation: None Page 1 u 0.2 7., 1%) 2 2 2 CO CA fA c0 D 00 00. 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N c Eo Z E > m N E EO (ui�oasaoiw)ewil;isue.l O o > > a, >_ _ 0 c N U J U In O (n co m -2 o' OC Mt SWACO CINGSA Cook Inle# Natural Gas STORAQ A Schlumberger Company Well: Cannery Loop#2 as Kenai,Alaska INTEGRATED FLUIDS ENGINEERING RECAP A., ,4„,c. erUSE J 4�► Prepared For: Cook Inlet Natural Gas Storage Alaska Well: Cannery Loop #2 Kenai, Alaska Prepared by: Pete Nelson Project Engineer Reviewed by: Rob Haag Project Engineer Presented to: Conrad Perry Drilling Engineer Date: December 1, 2011 =IFE Mg SWACO Cook Inlet Natural;Gas CINGSA Well: Cannery Loop#2 STORA( us a A Schlumberger Company Kenai, Alaska Table of Contents 1. EXECUTIVE SUMMARY 2. BENCHMARKS & TARGETS 3. WELL SUMMARY 4. SUMMARY OF FLUID RELATED COST 5. INTERVAL DISCUSSION 6. PRODUCT SUMMARY 7. DRILLING FLUIDS SUMMARY 8. HYDRAULICS SUMMARY 9. DAILY DISCUSSION 10. FLUID VOLUME SUMMARY 11. HIGHLIGHTS I RECOMMENDATIONS/ LESSONS LEARNED 12. APPENDIX 1 A. PRODUCT CONCENTRATIONS IFE Cook Inlet Natural Cas MI SWACO CINGSA STOAAG A Schlumberger Company Well: Cannery Loop#2 as a Kenai, Alaska EXECUTIVE SUMMARY No incidents or spills attributable to M-I SWACO personnel occurred during the drilling and completing of this well. HS Safety Meetings attended - 46 meetings Man-hours worked - 552 hours Drilling of CLU #2 was 3 days under projected due to rig IFE and personnel efficiency along with minimal unscheduled events. Cement contamination was not an issue on this well as Mi SWACO they were in past wells. Formation losses in all intervals were encountered and minimized utilizing LCM material. AIPIN IFE LoTorq and Lube-776 were used as the lubricant on this well with very good performance for reducing torque and drag and minimizing bit stick / slip. IFE Cook Inlet Natural;Gas Mi SW"PS1 CINGSA STORAQ Well: Cannery Loop#2 as n �a A Schlumberger Company Kenai,Alaska BENCHMARKS AND TARGETS Benchmarks Planned Actual QHSE Zero QHSE related There were no Incidence fluid related QHSE incidence on this well Zero NPT due to Zero NPT No NPT was fluid properties out related to of specifications fluids being out of specification Minimal Losses to Reduce losses when LCM Pills Formation and if they occur helped to reduce losses on two occasions Ar'IFE . .. ....._.__.._..._ Mi SWAG CINGSA Cook Inlet Natural Gas STORAQ Well: Cannery Loop#2 as a A Schlumberger Company Kenai.Alaska WELL SCHEMATIC SUMMARY Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost ire (in) (ft) (PPP) ($) 13 3/8" 16" .. 2,719' 2,414' Spud 9.2 6 Mud Ho-Pro 9 5/8" 12 1/4" 7,756' 4,956' NT 9.3 8 Ho-Pro 7" 81/2" 8,575' 5,110' N T 9.2 6 Completion 8.575 110' Potassium 8 7 3 Chloride Cook Inlet Natural:-Gas MI SWACID CINGSA STORAQ A Schlumberger Company Well: Cannery Loop /2 as a o to Kenai.Alaska WELL SUMMARY Mi SWACC1,--_ A Schlumberger Company RECAP - WELL SUMMARY Operator: CINGSA Well Name: CLU Storage r2 Well Location: Kenai,Alaska Spud Date:10/28/2011 Contractor:Nabors Drilling Total Depth(TD/TVD)8577 ft/5110 ft TD Date:11113/2011 Project Engineer Pete Nelson Max Temp/Max Angle320°F/80°inclin. Field/Area Cannery Loop/Kenai Fluids Engineer L.Rooney/J.Brown Max Mud Weight 9.8 lb/gal Description:SEC.9/T5N/R11W,SM Fluids Engineer T.FaulknerB.Smithcreens,Equip.&Haul-off Cost(5): Warehouse:Nikiski,Alaska Total Days to TD 15 Product Sr Engineering Cost(5)268,694.85 M-I Well No.334369 Air Gap Water Depth 0/0 ft Project Total Cost($)268,694.85 Csg Depth Depth Hole Max.Mud Max Max. Total Int interval Dates Int. Casing Principal /71'D Drilled Size Weight Angle Temp Int.Cost No. Days Size Type Fluid Type Begin End In) (n) tin) dbigalt Idepees) CFI (Sr 133." 1 2S--Oct- 22-Nov- n 2719/2414 2,731 16 9.2 56.00 85 Spud Mud Mil 9 625 2 3-Nov- 10-Nov- 8 7756/4956 5,025 121/4 9.3 80.00 120 FLOPRO lv'T - 3 11-Nor- lb-Nov- 6 8575/5110 821 81,2 9.2 80.00 115 FLOPRO NT mMi 7 - Potassiu 4 17-Nov- 19-Nov- 3 8575/5110 81/2 8.7 80.00 115 - Fltnds Chloride (f'FE 1. Cook Inlet Natural Gas MI SWACO ... CINGSA STORAC Well: Cannery Loop#2 a5 a � nn . A S.'d,,,bctycr CurIpa r; .- - Kenai.Alaska SUMMARY OF FLUID RELATED COSTS WELL COSTS SUMMARY Operator. CIA Germane:Naboa Drallog Deeaipao:S .9/124111W$88 TDITVD:8577t/811011 WdNoe:CLt156aage e2 FeldiArte:Gunny loop/10mi Laa1ilie:Irma1 Auks Mev WITop.:120•F Aon Dan:2-Oct-11 Bed Dan:19-14oa11 Tsu8Dm is TV:1S SWAMIS tack:80• Entire Interval t l Interval t2 Interval i 3 Interval 11 Weil f Project Hind Tpe dPRON cpe SpMal Rom°NT FIAI ias rua.:k Final( I ) It s 0 7756 7756 8.575 Final (MDI rt 2719 7756 875 8,575 5 Depth It 2,731 5p25 821 6577 Hole Siffm 16 12 9 9 Calm Sia to 13 10 7 7 Casing Type Casing Casing lea Campktlm fluids Start Day 28.Oct-Il 03-Nov-11 11-Nov-11 17-Nov-11 20-Oct-11 End Dar 02-Nov-11 10-Nov-11 16-Nov-11 19-Nov-11 19-Nov-11 Total days 6 8 6 I In id Service Cost(SI -t:II drilled ` MN = __1111--- Flwd Serve Coot bbl of fluid m M Fluid Serve Cost Day , - Engineering Cost S == MIMI ll MINN -- - Chemicals Cost w/o Engineering S min imm n - lnterval Fluid Service Cost Elm mom I= — Total Project Cost Summary(Sl Drilling Fluid Engineers MN M ti 111111- - __ — — ' mo — Total Cost`ft drilled NM __M_ Tota(Cosi:bbl of third _ _ _.. _---�— Total Cost"Dap ' OM - _. __.. _ - -- Total interval Cost $ MEM 11111. IMMI r'FE Cook Inlet Natural Gas MI SWAG CINGSA STORAC E Well: Cannery Loop#2 asa fio A Schlumberger Company Kenai,Alaska IFE DRILLING INTERVAL DISCUSSION Surface Interval 0 — 2,719' MD, 2414' TVD 16" Open Hole/13 3/8" CSG 8.7— 9.2 ppg GeIUGelex Spud Mud The surface interval was drilled, the casing run, and cemented in 3 days. Actual drilling took 1 day. The well was spudded on October 30, 2011 with a new Gel/Gelex spud mud. The mud engineers arrived on October 28 to prepare for the spud. Approximately 600 bbls of 8.6 ppg spud mud (20 ppb Gel) were mixed with a funnel viscosity of 60 and a YP of 17. The shakers were fitted with 165 mesh screens (API 100). A 16" bit (HCC VM1) and mud motor was picked up and ran in. The conductor had been previously cleaned out to 117' by a truck mounted rig. The hole was drilled to 350' making enough room to pick up the MWD and remaining BHA. Drilling ahead began with penetration rates of 100 - 150 fph while control drilling. The first 500' was dominated by mostly sand with a gravel layer between 200 - 250'. Pump rates for the first 400' were kept at 425 gpm to avoid excessive washout. A 40 bbl high viscosity sweep was built in the pill pit to be used at the driller's discretion. A 20 bbl sweep was pumped after drilling the gravel zone resulting in a large amount of gravel on the shakers. Several more sweeps were pumped in the first 500' to clean-out the unconsolidated sand and gravel. The surface hole was predominately unconsolidated sand. For most of the surface hole the funnel viscosity was in the 40 - 50 sec/qt range and the YP @13 - 17. Water was run at 20 - 40 bph to maintain volume. Gel and Gelex were added to maintain viscosity while adding water. By —900', the pump rate was up to 600 gpm. Hole cleaning for the surface hole was good and connections were problem free to TD. High viscosity sweeps were pumped at 400 - 500' intervals. The sweeps usually produced a 100% increase in cuttings. There were no problems with fill. No short trips were made while drilling the surface hole. There were some seepage losses noted while drilling, however, no significant losses were noted while drilling the surface hole. The rig's Derrick centrifuge was running most of the time while drilling. Sand content never exceeded 1.5 % but it was in the 0.5 - 1% range for most of the surface hole. The final mud weight was 4IPI `IFE Cook Inlet Natural,Gas M SWAGS CINGSA STORAC Well: Cannery Loop#2 QS a 'P A Schlumberger Company Kenai,Alaska 9.1 ppg. The funnel viscosity was 46 with a YP of 14. PolyPac Supreme was added at 1 ppb beginning at —2,300' to reduce the fluid loss to 10 cc. At TD, a high viscosity sweep was pumped resulting in approximately a 100% increase in additional material on the shakers at bottoms up. The final trip out of the hole was problem free. Preparations were made for running 13-3/8" casing. After rigging up, the 13-3/8" casing was run to 2,719' without incident. There were about 20 bbls of losses while running the casing, mostly in the first 1,000' and then tapered off. An inner string was run using the 5" drill pipe that stung into the "EZ Cementer" above the float collar. A full casing volume was circulated without losses. At this time, the mud was pretreated with 0.5 ppb of sodium bicarbonate and 0.25 ppb of Desco. Preparations were made for cementing the casing. The cement job went well and the 12.0 ppg cement made it to surface. There were no losses while cementing. The cement job began with 35 bbls of 10.2 ppg mud push followed by 309 bbls of 12.0 ppg lead cement, followed by 63 bbls of 15.4 ppg tail cement. The cement was then displaced from the inner string with 55 bbls of 9.1 ppg spud mud. The hole wash out was calculated at—15%. The next 2 days were spent nippling down the diverter, nippling up and testing the BOP's, and picking up 5" drill pipe. All pits, lines, and pumps were cleaned. This completed the surface interval. Surface Interval Cost Summary Mi SWAC Cook Inlet Natural;Gas CINGSA C Well: Cannery Loop#2 STORAas a A Schlumberger Company Kenai,Alaska Mi SWA DRILLING FLUIDS & VOLUME SUMMARY A Schlumberger Company - I I V TFR V A 1. 1 Operator:CINGSA Description:SEC.9/T5N/R11 W,SM Start Depth/TVD:0 ft/0 ft Well Name:CLU Storage#2 Location:Kenai,Alaska End Depth/TVD:2719 ft/2414 ft Contractor:Nabors Drilling Field/Area:Cannery Loop/Kenai Total Depth Drilled(ft):2,731 Start Date:28-Oct-11 Mud Type:Spud Mud Maximum Interval Angle e):56 End Date:2-Nov-11 Hole Size(in):16 Maximum Interval Temperature(°F):85 Interval Days:6 Casing Size(in):13 3/8 Fracture Gradient(m/gal): Water Depth(ft): Top of Liner(ft): Maximum Interval Mud Weight(Ib/gal):9.2 PRODUCT&MUD ENGINEERING USAGE ON THIS INTERVAL Product Concentration Total Rig Time Distribution Product Name Unit Cost($) Total Cost($) %Total Cost (lb/bbl) Units Min Max Average Name Days CF DESCO II M. ■ Mil MN NM CITRIC ACID IM ■ ME MIE ii= _ - ME DEFOAM X ENGINEERING SERVICE =MI ■ FLOW ZAN GELEX BENT EXTENDER _ ____ ■ - M-I GEL EXPORT M-I WATE(BARITE) I MM _ - MYACIDE GA25 MEI , POLYPAC SUPREME UL I EMI MM PORTABLE ARTIC MUD LAB RENTAL I EMI - SODA ASH ■ SODIUM BICARBONATE IIM ■ NM i= MII Product&Mud Eng.Total Cost($) 100% Total Days 6 Volume Description Volume(bbl) Losses Detail(bbl) 1.Volume on board @ start Haul off 458 2.Received Shakers 3.Back Loaded/Transferred Left Behind Csg 4.Remaining 2,097 Centrifuge 5.Volume Built 1,509 Formation 6.Surface Volume Lost 458 Left in Hole 7.Subsurface Volume Lost De-Sitter Interval Comments: Dumped Fluid Processed Total Mud Losses(bbl) 458 TOTAL INTERVAL COST ($) IFE Mi SWAG CINGSA Cook Inlet Natural:Gas Well: Cannery Loop#2 �TORA� A Schlumberger Company as J. Kenai, Alaska Intermediate Interval 2,719' — 7,756' MD/ 4,956 TVD 12 1/4" Open Hole/ 9 5/8" CSG 8.9-9.3 ppg FLO-PRO NT Drilling Fluid The intermediate interval took 8 days with actual drilling completed in 4 days. After the surface interval was completed, about 1100 bbls of spud mud were transferred to the tank farm to be centrifuged and/or de-watered. Pits were cleaned and 800 bbls of used/centrifuged Flo-Pro from the previous well was transferred from the tank farm to the rig pits. This mud was re-conditioned with Flowzan, KCL, PolyPac, Kla-Gard, and Asphasol. A steam hose was dropped into the active pits and warmed the mud to 90 degrees by displacement time. A 12.25" bit (QD 605X), AutoTrak, MWD, and LWD were picked up and run in. The cement and shoe were drilled out. Drilled 20' of new hole to 2,751', and the spud mud was displaced out of the hole with the reconditioned Flo-Pro NT at 8 bpm. A FIT was performed to 15.0 ppg EMW. Drilling ahead commenced. Pit 6 was cleaned and isolated and used to make 100 bbl batches to bring pit volume to 600 bbls. The shakers were screened to 165 mesh screens (API 100). Drilling rates of 200 — 250 fph were averaged. The mud weight was at 9.0 ppg and the funnel viscosity was 45 with a 14 YP. Pump rates were in the 580 - 610 gpm range. Top drive rotary speed was 130. There were no problems with mud running over the shakers. This was probably due to the 90 degree temperature of the mud and using reconditioned Flo-Pro NT that was already well sheared. While drilling ahead, 100 bbl batches of Flo-Pro were built in pit 6 and then transferred to the active system to maintain volume. Tank 1 in the tank farm contained 450 bbls of de-watered Flo-Pro and excess 3% KCL. This fluid was used as make up water for the 100 bbl batches. Tank 1 was heated with steam prior to transferring to the rig. Also at this time, the water well became available to the rig for the first time making it no longer necessary to haul water from the city fire hydrant. Rig water was run into the active at 10 - 15 bph while drilling. The rig water was kept heated to 90 degrees. Drilling continued to 5,392' where a short trip back to the shoe was made. A 40 bbl high viscosity sweep (FV 180) was pumped around prior to the short trip resulting in a 200% increase in cuttings. It was decided to back ream and not pull out on elevators to ensure hole cleaning and remove any tight hole. The trip back in the hole was problem free with no fill on bottom. When back on bottom, a 40 bbl 10 ppb Nut Plug medium sweep was pumped around to clean the bit of any potential clay balling. While drilling, after the short trip, the lubricant concentration was increased to 4% at the request of the company representative. Both LoTorq and Lube 776 were used. Torque was reduced from 18-19K to 13-14K ft-lbs. The shakers were screened up to 200 mesh screens (API 120) during the short trip. IFE Cook Inlet Natural Gas Mi SWAC C>NGSA STOKAC Well: Cannery Loop#2 as a ,r' �o A Schlumberger Company Kenai, Alaska At approximately 6,500', Asphasol Supreme and Resinex concentrations were increased in preparation for drilling the coals near the top of the Sterling Formation. The coals were drilled without problem and the top of the Sterling was drilled without losses. Upon reaching TD for this interval, bottoms up was circulated at 600 gpm with top drive rotation at 130. A 40 bbl 25 ppb calcium carbonate LCM pill was built and was to be spotted on bottom before pulling out of the hole. Just prior to spotting the LCM pill, losses began. About 60 bbls of mud were lost in a 10 minute period. The LCM pill was pumped away through the BHA and spotted on bottom. The losses slowed but were still too high (-100 bbls per hour). It was decided to open the Well Commander tool and pump a 100 ppb LCM pill. In pit 6, a 100 bbl LCM pill was built consisting of 25 ppb of Safe-Carb 20, 50 ppb of Safe-Carb 40, and 25 ppb of Safe-Carb 250. Unfortunately, after dropping 2 balls, the Well Commander tool would not open and it was not possible to circulate through the drill string. It was later found that the balls had become stuck in the jars above the Well Commander. While working the Well Commander tool, the losses had slowed significantly (10 bbls per hour). The hole fill pump was used to keep the hole filled. The losses were estimated at 370 bbls up to the time of starting out of the hole. About 250 bbls of bland Flo-Pro were built to bring the active pit system back up to 600 bbls. Without being able to pump, a trip out of the hole was made. Back reaming and rotating was possible. The trip out of the hole to the shoe required about 16 hours. A tight spot at around 5,650' took 4 hours to work through. From —5,200' to the shoe (2,719'), the trip was slick on elevators with no back reaming required. At TD, the mud weight was 9.1 ppg with a 24 yield point and the funnel viscosity was 67. The lubricant concentration was at 4%. Black product concentration was at 8 ppb. Fluid loss was at 6.8 cc/30 min. A clean-out run was made prior to running casing. This was a "slick assembly" with the same bit, 2 stabilizers, and heavy weight pipe. The trip in the hole saw one tight spot at 5,650. This was pumped and rotated through to clean it up. While washing and reaming to bottom, losses began. Approximately 160 bbls were lost. The 100 bbl LCM pill that was intended for the Well Commander tool was now pumped and spotted on bottom. Losses slowed significantly. A 10 stand trip was made back to 6,800'. The mud and hole were circulated and conditioned at 350 gpm for 1 bottoms up. Asphasol and G-Seal were added at this time. A LoTorq pill was spotted in the lower 1,500' of the open hole increasing the concentration of lubricant to 6-7% between 6,800' and 5,300'. This was to aid in running and landing casing. An 11 ppg dry job was pumped and the final trip out of the hole was made. The mud weight was 9.1 ppg and the YP was 19. Fluid loss was at 6.6. The trip out was slick and problem free. Losses had decreased to 1 - 2 bbls per hour. Preparations were made for running casing. The casing was run to 5,500' when lost returns from displacement were noted. The plan was to RIH to bottom before circulating because an LCM pill had been put in the casing. To initiate circulation at 7,650', pump pressures of 1600-1800 psi were necessary. Lost circulation was a problem and 650 bbls of new mud was mixed. Due to a frozen water line, water was transferred using the AIMM truck and the temperature had to be adjusted prior to cementing. Pumping at 2.4 — 3.0 bpm while preparing for the IFE Cook Inlet Natural Gas Mi SWAG CINGSA STORAC Well: Cannery Loop#2 as a A Schlumberger Company Kenai, Alaska cement job, mud losses were very slight (2 - 5 BPH). The cement job was pumped at 5 - 7 bpm with no noticeable losses. The first stage cement procedure had cement returns to surface 35 bbls before the plug was bumped. The second stage cement noted 255 bbl gain after the mud push was pumped while cement mixed and pumped. When displacing the cement, the mud push spacer came over the shakers 1,200 strokes into pumping the mud to bump the plug(3,430 strokes total to bump plug). The Mud Push spacer was easily identified in returns at the shaker because 4 sacks of Nut Plug had been added, which worked very well on the second stage. This could be utilized in future cement programs as red dye sometimes is hard to identify. Intermediate Interval Cost Summary M-I SWACO Interval Days: 8 IFE Mi SWAG Cook Inlet Nafural:Gas CINGSA STORACA7 Well: Cannery Loop#2 as A Schlumberger Company --" a, Kenai,Alaska Mi SWAB DRILLING FLUIDST & VOLUME SUMMARY A Schlumberger Company j 1 "J'F'R VAI. 2 . Operator:CINGSA Description:SEC.9/T5N/R11 W,SM Start Depth/TVD:2719 ft/2414 ft Well Name:CLU Storage#2 Location:Kenai,Alaska End Depth/TVD:7756ft/4956ft Contractor:Nabors Drilling Field/Area:Cannery Loop/Kenai Total Depth Drilled(ft):5,025 Start Date:3-Nov-11 Mud Type:FLOPRO NT Maximum Interval Angle(°):80 End Date:10-Nov-11 Hole Size(in):12 1/4 Maximum Interval Temperature PF): 120 Interval Days:8 Casing Size(in):9 5/8 Fracture Gradient(lb/gal): Water Depth(ft): Top of Liner(ft): Maximum Interval Mud Weight(lb/gal):9.8 PRODUCT&MUD ENGINEERING USAGE ON THIS INTERVAL Product Concentration Total Rig Time Distribution Product Name Unit Cost(S) Total Cost($) %Total Cost (lb/bbl) Units Min Max Average Name Days ASPHASOL SUPREME M147 MEM 6.48% 1.889 3.393 2.347 Rig Up/Service 0.06 CAUSTIC SODA 19 0.41% 0.244 0.506 0.355 Drilling 2.25 CF DESCO II 20 0.52% 0.032 0.287 0.097 Tripping 1.94 CONQOR 404 == 6 Mi. 4.46% 0.551 1.074 0.786 BOP NU 0.13 ENGINEERING SERVICE 16 9.59% BOP Testing 0.23 FLOWZAN 96 8.11% 0.697 1.013 0.792 Cementing 0.65 G-SEAL 20 MEM 1.06% 0.508 0.666 0.572 Condition Mud 0.83 KLA-CARD MI 12 Ili 4.65% 1.230 2.397 1.764 Reaming 0.6 LOTORQ 2860 24.31% 4.776 8.508 6.273 Running Casing 0.96 LUBE 776 12 M= 9.12% 0.329 2.613 1.648 Handle BHA 0.06 M-I W ATE(BARITE) 245 1.85% 1.096 7.507 2.989 Wash&Ream 0.15 PECAN NUT PLUG MEDIUM 8 MUM 0.14% 0.093 0.181 0.126 ' POLYPAC SUPREME UL 41 EN= 3.58% 0.639 1.470 0.906 PORTABLE ARTIC MUD LAB RENTAL 8 0.67% POTASSIUM CHLORIDE(KCL) M794 12.28% 12.362 15.905 14.001 RESINEX 74 4.00% 0.280 1.709 1.027 SAFE-CARB 20 iiii 165 == 2.29% 1.159 4.227 2.298 SAFE-CARS 250 MI 130 == 1.92% 2.029 3.057 2.399 SAFE-CARB 40 247 MIMI 3.65% 2.848 5.607 4.044 SODA ASH 36 EMI 0.50% 0.530 0.806 0.692 SODIUM BICARBONATE 31 MM 0.36% 0.103 0.937 0.282 SODIUM METABISULFITE MI 1 0.03% 0.063 0234 0.113 Product&Mud Eng.Total Cost($) 100% Total Days 8 Volume Description Volume(bbl) Losses Detail(bbl) 1.Volume @ start 2,097 Formation 849 2.Received Haul off 506 3.Back Loaded/Transferred Left in Hole 250 4.Remaining 2,843 Shakers 158 5.Volume Built 2,726 Dumped 116 6.Surface Volume Lost 883 Centrifuge 100 7.Subsurface Volume Lost 1,099 Fluid Processed 3 Interval Comments: Left Behind Csg De-Silter Total Mud Losses(bbl) 1,982 TOTAL INTERVAL COST ($) MEM IFE NII SVi//©►C Cook Inlet Natural Gas CINGSA T R A Well: Cannery Loop#2 QS a ° A Schlumberger Company Kenai, Alaska Injection Interval 7,756'-8,575'MD/ 5,110' TVD 8 1/2" Open Hole/ 7" CSG 9.1 - 9.2 ppg FLO-PRO NT Drilling Fluid The production interval required 6 days to complete with drilling taking 1 day. The 8.5" drilling BHA #4 and NB #3 were run in the hole to drill out cement and drill ahead. There was 250' of cement at and below the DV collar down to 3,770'. The bit was ran the hole to 7,660' to tag the float collar plug, drill out, and make 20' of new hole to 7,776'. A FIT was performed to 11.5 ppg EMW. Drilling resumed with pump rates of 380 gpm as the mud was conditioned from drilling cement. Drilling continued to 8,577' where the geologist called TD. The hole was circulated clean and the bit was pumped and rotated to the shoe. Again the hole was circulated clean, a dry job was pumped, and the BHA was pulled out and laid down. There were only slight losses to the formation while drilling this interval (2-3 BPH). Less than 12 hours was needed to drill to TD. A cement bond log with Baker Atlas was rigged up and run. The bond log run pulled a piece of aluminum 4" X 4" out of the hole and was unable to log all the way to the shoe. A clean-out BHA was made up with a used 8.5" bit and ran to bottom. The hole was circulated clean and it was pumped out to the shoe then pulled on elevators. The 7" liner was rigged up and ran to bottom. A bottoms up was circulated at the shoe. The liner went to bottom without any problem. It was cemented without incident and used a new solids-free perforating KCl brine spacer in the liner (40 BBLs) to displace the cement. The assembly was pulled out of the hole, laying down excess drill pipe. Production Interval Cost Summary M-I SWACO Interval Days: 6 IFE Mi SWAG Cook Inlet Natural Gas CINGSA STORAQ! ...':i;P. • - _. � Well: Cannery Loop#2 as a '�o A Schlumberger Company Kenai, Alaska Mi SWAG DRILLING FLUIDS & VOLUME SUMMARY A Schlumberger Company INTER V A I. 3 Operator:CINGSA Description:SEC.9/T5N/R11W,SM Start Depth/TVD:7756 ft/4956 ft Well Name:CLU Storage#2 Location:Kenai,Alaska End Depth/TVD:8575 ft/5110 ft Contractor:Nabors Drilling Field I Area:Cannery Loop/Kenai Total Depth Drilled(ft):821 Start Date:11-Nov-11 Mud Type:FLOPRO NT Maximum Interval Angle(°):80 End Date:16-Nov-11 Hole Size(in):81/2 Maximum Interval Temperature(°F):115 Interval Days:6 Liner Size(in):7 Fracture Gradient(Ib/gal): Water Depth(ft): Top of Liner(ft):7,604 Maximum Interval Mud Weight(lb/gal):9.2 PRODUCT&MUD ENGINEERING USAGE ON THIS INTERVAL Product Concentration Total Rig Time Distribution Product Name Unit Cost($) Total Cost($) %Total Cost (Ib/bbl) Units Min Max Average Name Days CITRIC ACID 37 9.37% 0.034 1.375 1.090 Rig Up/Service 0.15 CONQOR404 2 5.80% 0.517 1.102 0.956 Drilling 0.45 ENGINEERING SERVICE 12 28.05% Tripping 2.56 FLOW ZAN E= 21 6.91% 0.858 0.976 0.939 BOP Testing 0.54 G-SEAL El. 25 =ME 5.15% 0.990 1.078 1.036 Cementing 0.35 KLA-GARD 4 == 6.04% 1.154 2.438 2.116 Condition Hole 0.44 M-I W ATE(BARITE) 198 == 5.84% 5.926 14.401 9.744 Direction Work 0.08 MIX II COARSE Iiii 20 NM 1.09% 0.229 0.301 0.250 Reaming 0.32 MYACIDE GA25 3 0.97% 0.008 0.119 0.071 Rig Repair 0.06 POLYPAC SUPREME UL 10 == 3.41% 0.659 0.846 0.777 Running Casing 0.5 PORTABLE ARTIC MUD LAB RENTAL 6 NM 1.96% Slip&Cut 0.08 POTASSIUM CHLORIDE(KCL) 151 IIM= 9.10% 10.920 16.556 12.588 Wireline run 0.35 RESINEX ME 25 5.27% 0.823 1.602 1.401 Test Casing 0.02 SAFE-CARB20 50 2.71% 4.165 5.470 4.544 FIT 0.04 SAFE-CARB 250 111111 52 3.00% 3.495 4.072 3.726 Handle BHA 0.04 SAFE-CARB 40 MI 88 IM= 5.07% 6.292 7.022 6.616 SAPP 2 0.26% 0.066 0.073 0.069 Product&Mud Eng.Total Cost($) 100% Total Days 6 Volume Description Volume(bbl) Losses Detail(bbl) 1.Volume @ start 2,843 Dumped 356 2.Received Shakers 151 3.Back Loaded/Transferred Haul off 139 4.Remaining 2,537 Centrifuge 91 5.Volume Built 432 Left Behind Csg 6.Surface Volume Lost 737 Formation 7.Subsurface Volume Lost Left in Hole Interval Comments: De-Silter Fluid Processed Total Mud Losses(bbl) 737 TOTAL INTERVAL COST ($) IFE Cook Inlet Natural;Gas Mi SWA C CINGSA STORAC � ASchlumberger Company = Well: Cannery Loop#2 flS a� Kenai, Alaska Completion 7" Tubing 8.7ppg 6% KCL Brine The completion interval required 3 days. A polish mill was picked up and run in the hole to clean out the polish bore receptacle. The rig then pulled out of the hole laying down all the drill pipe. Weatherford was rigged up and the 7" tubing with a seal bore assembly was run in the hole to 7,604'. The tubing was spaced out and the well was then displaced to 6% KCL brine. Two drums of Conqor 303 and 5 barrels of diesel were spotted in the annulus. This completed the completion interval. The mud engineers remained for an extra day to supervise pit cleaning and fluid transfer operations. Completion Interval Cost Summary M-I SWACO Interval Days: 3 IFE AC Cook Inlet Natural-Gas Mi SW CINGSA STORAGE v- A Schlumberger Company Well: Cannery Loop#2 as a i' Kenai, Alaska Mi SWA�� DRILLING FLUIDS & VOLUME SUMMARY A Schlumberger Company - INTFR V A I. 4 Operator:CINGSA Description:SEC.9/T5N/R11 W,SM Start Depth/TVD:8575 ft/5110 ft Well Name:CLU Storage#2 Location:Kenai,Alaska End Depth/TVD:8575 ft/5110 ft Contractor:Nabors Drilling Field/Area:Cannery Loop/Kenai Total Depth Drilled(ft): Start Date:17-Nov-11 Mud Type:Potassium Chloride Maximum Interval Angle(°1:80 End Date:19-Nov-11 Hole Size(in):8 1/2 Maximum Interval Temperature(°F): 115 Interval Days:3 CompL Equip.Size(in):7 Fracture Gradient(lb/gal): Water Depth(ft): Top of Liner(f0:7,604 Maximum Interval Mud Weight(lb/gal):8.7 PRODUCT&MUD ENGINEERING USAGE ON THIS INTERVAL Product Concentration Total Rig Time Distribution Product Name Unit Cost(S) Total Cost(S) °o Total Cost (1b/bb1) Units Min Max Average Name Days CONQOR A303 500.28 2 lil 6.76% 0.099 1.190 0.826 Tripping 0.85 ENGINEERING SERVICE 1,075.00 6 43.57% BOP Testing 0.15 M-I W ATE(BARITE) 13.57 100 9.17% 19.546 19.608 19.567 Condition Hole 0.04 PORTABLE ARTIC MUD LAB RENTAL 150.00 3 3.04% Displace Well 0.08 POTASSIUM CHLORIDE(KCL) 27.73 200 Mini 37.46% 27.362 27.448 27.390 Test Well 0.08 NU Tree 0.17 Clean Pits&Lines 0.13 BOP ND 0.5 Test Well 0.08 Displace Well 0.08 RIH w/7"Completion 1 Product&Mud Eng.Total Cost($) 14,803.56 100% Total Days 3 Volume Description Volume(bbl) Losses Detail(bbl) 1.Volume @ start 2,537 Dumped 144 2.Received Haul off 54 3.Back Loaded/Transferred Shakers 4.Remaining 2,360 Left Behind Csg 5.Volume Built 21 Centrifuge 6.Surface Volume Lost 198 Formation 7.Subsurface Volume Lost Left in Hole Interval Comments: De-Silter Fluid Processed Total Mud Losses(bbl) 198 TOTAL INTERVAL COST ($) IFE Mi SWAG Cook Inlet Natural:Gas CINGSA C TO p A A Schlumberger Company well: Cannery Loop#2 Q $ .a` '°o Kenai, Alaska PRODUCT SUMMARY Mi SWA TOTAL PRODUCT &ENGINEERING CONSUMPTION FOR THE WELL A I Alumbe,pe,Compoo Operator:— Contractor:Nabors Drilling Description:— TD/TVD:8577 ft/5110 ft Well Name:— Field/Area:Cannery Loop/Kenai Location:— Max.Well Temp.:120°F Start Date:— End Date:19-Nov-11 Total Days to TD:• Max Well Angle:80° PRODUCT&ENGINEERING USAGE FOR THE WELL Unit Size Unit Cost($1 —SUPREME - = CAUSTIC SODA MUM ` N ` M — CF DESCO II IMM ii 111 MEM Mi. CITRIC ACID . . CONQOR 404 liM 1 MEE CONQOR A303 a a mos am Nom ■ I ENGINEERING SERVICE == . FLOW ZAN - - _ — MM. Min U INIM — M. U UM a U mmia — - - mm , • — - - - m S = — mom om t N am — mmi U a IIIIIIIIJ— = a - - ■ iii INII 1111 MI IIIM Mill U mom — — Nom - mi J— mom mm SEiM MI MI (— ME I U .0 ME MINIME — U U MM ill — I 111. - - 268,694.85 100% IFE Mi SWAG Cook Inlet Natural:Gas CINGSA STO RA — Well: Cannery Loop#2 1 as a A Schlumberger Company - Kenai, Alaska DRILLING FLUIDS SUMMARY Mi SW _, __ Drilling F l u i d Summary Schlumberger Company Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage#2 Description: SEC. 9/T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 10/28/2011 10/29/2011 10/30/2011 10/31/2011 11/1/2011 11/2/2011 Depth ft r 117 ' 1556 r 2731 r 2731 I► 2731 ND ft P 117 P 1544 r 2422 r 2422 P 2422 Activity Rigging Up PUBHA Drilling Ahead Running Casing Nippling Down BOP Test Mud Type Gel Spud Mud Gel Spud Mud Gel Spud Mud Gel Spud Mud Gel Spud Mud Gel Spud Mud Hole Size in 16.000 16.000 13.000 13.000 12.250 12.250 arc Volume bbl 657 1382 1401 467 009 Flow Rate gal/min 603 606 arc Pressure psi 1308 1385 Average ROP 175 175 Sample From PIT PIT PIT PIT PIT Time Taken 23:30 23:00 2t00 '0:00 15U0 Flow Line Temp `F NA IP 82 r 85 r 78 NA Mid Weight ' lb/gal r 8.5 ' 9.0 p 9.0 r 9.0 p 9.0 Mud Temp `F r 64 r 76 I 74 r 78 IP 70 Funnel Viscosity ' s/qt p 41 p 50 p 52 I 49 r 48 Rheology Temp `F r '20 p 'Q0 p 120 IP 20 I► 120 R600 r 25 p 34 p 44 p 42 r 42 R300 IP '6 p 26 r 30 IP 29 r 28 R200 r 12 p 22 p 25 r 24 r 24 R100 IP 13 r 16 IP 13 P 17 r 16 R6 p 3 r 11 p 13 r 13 r 1) R3 P 2 r 9 IP 8 r 8 / 8 PV cP r 9 ' 8 Yr 14 r 13 I 14 YP Ib/1D0ft' r 7 p 18 r 16 r 16 ► 14 10 s Gel Ib/'00ft' ' 4 * 13 /r 9 r 1) r 0 10 m Gel Ib/00ft' p 5 r 12 p 16 r 12 r 12 30 m Gel Ib/100ft2 r 7 ' b p 22 P 16 P 15 AR FL cc/30min r 14 r b p 12 p 118 r 112 HTHP FL cc/30min HTHP FL Temp 'F Cake API r 2 P 2 V 2 r 2 r 2 Cake HT Solids %Vol r 22 r 4 I 4 I 4 ' 4 Oil %Vol Water %Vol * 97.8 p 96 p 96 p 96 r 96 Sand %Vol MBT lb/bbl p 22 r 25 ' 25 I 25 r 22 pH P. 0 r 9.4 p 9.7 I 9.6 p 9.6 pH Temp °F V 74 I, 74 r 74 r 74 p 72 Alkal Mud(Pm) V 02 r 0.4 r 0.5 r 0.5 r 0.5 Pf p 0.5 ' 0.4 p 0.4 V 0.4 I 0.4 Mf p 0.6 r 0.5 p 0.7 p 0.7 p 0.7 Chloride mg/L ' 400 I 500 p 500 p 500 p 500 Hardness,Ca p 40 ' 40 p 40 p 40 p 40 APIN IFE Cook Inlet Natural;Cas MI SWAG • , CINGSA STORAC Well: Cannery Loop#2 as a . l'a' A Schlumberger Company .._ _, Kenai, Alaska Mi SWACCI...-- ' A Schlumberger Company Drilling Fluid Summary Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage#2 Description: SEC. 9/T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 11/3/2011 11/4/2011 11/5/2011 11/6/2011 11/7/2011 11/8/2011 Depth ft P 3450 ' 6893 ' 6893 P 7756 P 7756 P. 7756 ND ft r 2815 ' 4665 P 4665P 4956 ' 4956 P 4956 Activity Drilling Short Trip t/Shoe Drilling Tripping Trip In Hole Run Casing Mud Type Flo-Pro NT Flo-Pro NT Flo-Pro NT Flo-Pro NT Flo-Pro NT Flo-Pro NT Hole Size in 4250 2250 2250 2250 12250 2.250 Circ Volume bbl 155 1425 1634 '638 '638 597 Row Rate gal/min 558 609 609 612 Orc Pressure psi 500 1760 2320 2560 2560 Average ROP Sample From PIT PIT PIT PIT PIT PIT Time Taken ► 2345 r 2230 "r 2230 ' 2200 ' 2230 Tor 2230 Row Line Temp `F 80 130 1D0 NA NA NA Mud Weight lb/gal 9.05 9.3 9.3 9.1 9.1 9.1 Mud Temp `F 80 98 98 88 80 74 Funnel Viscosity s/qt 44 49 49 40 43 46 Rheology Temp `F 20 120 120 120 20 20 R600 35 55 55 36 37 39 R300 24 41 41 26 26 27 R200 20 34 34 20 20 21 R100 8 27 27 14 13 13 R6 7 2 2 6 6 6 R3 6 4 13 5 5 5 PV cP 11 14 14 1D 11 2 YP Ib/1D0ft' 13 27 27 5 5 5 10 s Gel Ib/130ft' 7 13 13 6 6 6 10 m Gel lb/1DOft2 8 22 22 10 13 8 30 m Gel Ib/130ft2 8 23 23 12 12 11 API FL cc/30min 6.2 6.6 6.6 7.6 7.8 7.8 HTHP FL cc/30min HTHP FL Temp `F Cake API 1 1 1 1 1 1 Cake HT Solids %Vo I 4 6 6 5 5 5 Oil %VoI 1.5 3 3 2 2 2 Water °/%VoI 94.5 91 91 93 93 93 Sand %vol 0.8 t0 t0 02 0.1 0.1 MBT Ib/bbl 2 12 '2 4 4 4 pH 9.4 9.3 9.3 9.2 92 9.0 pH Temp 'F 80 95 95 80 80 77 Alkal Mud(Pm) 0.25 0.35 0.35 025 02 0.1 Pf 0.1 0.1 0.1 0.1 0.05 0.05 _ Mf 1.4 12 1.2 1.1 1.2 '.0 Chloride mg/L 22500 26000 26000 27000 26500 26000 Hardness,Ca 260 260 260 200 200 200 DissolvedOxygen ppm Congor404 ppm Potassium mg/I 24000 24000 24000 24000 23000 22000 Arbk IFE Mi SWA_ C Cook Inlet Natural:Gas Well: eTh Ca STORAQ A Schlumberger Company - well: Cannery Loop#2 as a s'o- so Kenai,Alaska Mi SWAG,,,,,,,,,,-- - DrillingFluid Summary Y A Schlumberger Company Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage#2 Description: SEC. 9/T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 11/9/2011 11/10/2011 11/11/2011 11/12/2011 11/13/2011 11P14/2011 Depth ft ► 7756 r 7756 ' 7756 ► 8321 r 8577 r 8577 TVD ft r 4956 r 4956 r 4956 r 5064 r 5110 r 5110 Activity Run Casing R/D F/Cmtg Run In Hole Drilling Run CBL Trip Out Mud Type Flo-Pro NT Flo-Pro NT Flo-Pro NT Flo-Pro NT Flo-Pro NT Flo-Pro NT Hole Size in 12.250 12.250 8.500 8.500 8.500 8.500 arc Volume bbl 1644 1560 1157 229 1303 1305 Flow Rate gal/min 387 arc Pressure psi 1250 Average ROP Sample From PIT PIT PIT PIT PIT PIT Time Taken r 2200 22:00 V 2200 22:00 r 2300 2100 Flow Line Temp 'F NA NA NA r 90 NA r 80 Mud Weight r lb/gal ► 9.0 r 9.3 ► 92 ► 9.1 r 9.1 r 9.1 Mud Temp `F r 70 r 70 r 70 r 90 r 80 r 80 Funnel Viscosity ' s/qt r 44 r 44 r 58 r 45 r 46 r 47 Rheology Temp `F r 120 r 20 ► 29 r vo r 120 r 40 R600 r 38 r 34 r 44 r 37 r 36 r 38 R300 r 26 r 24 r 32 ► 27 r 26 r 27 R200 r 21 r 19 r 27 r 22 r 20 r 21 R100 r 14 r 14 r 22 r 15 r 13 r 14 R6 r 6 r 5 r 12 r 6 r 5 r 5 R3 r 5 r 4 r 1) r 5 r 4 r 4 PV cP ► 2 1 'D O 12 r 13 r 10 r 11 YP Ib/100ft' ► 14 ► 14 r 20 r 17 r 15 r 15 10 s Gel up/tort' r 7 r 5 r 12 r 6 ► 5 ► 5 10 m Gel Ib/100ft' r 9 ► 7 ► .B ► 9 r 8 r 8 30 m Gel Ib/13oft' ► 2 ► 8 r 18 V 11 r 9 Tr 9 API FL cc/30min r 8.0 r 9.8 r 6.0 r 6.8 r 7.0 r 72 HTHP FL cc/30min HTHP FL Temp °F Cake API r 1 r 1 r 1 r 1 r 1 r 1 Cake HT Solids %Vol r 4.5 • 5 ► 4 r 4.5 r 4.5 1P 4.5 Oil %Vol r 2 ► 1 r 1 r 15 ► 15 ► 1 Water %Vol Tr 93.5 r 94 r 95 r 94 r 94 r 94.5 Sand %Vol r o.1 1r 02 r 0.1 r 0.5 r 025 r 025 MBT Ib/bbl r 12 8 ► 8 ► 8 r 8 r 8.5 pH 8.8 9.0 9.0 13.;5 '02 13.0 pH Temp `F 80 70 70 80 70 80 Alkal Mud(Pm) 0.1 02 025 0.65 Pf 0.01 0.1 0.1 0.15 0.1 0.1 Mf 0.85 10 0.85 22 2.1 185 Chloride mg/L 25000 20000 20000 21300 21300 20000 Hardness,Ca 200 130 180 550 480 520 DissolvedOxygen ppm Conqor 404 ppm Potassium mg/I 20000 13500 15500 13000 18500 13500 'FE Mi Co©k Inlet Natural has SWAG CINGSA STORAX 'Q A Schlumberger Company Well: Cannery Loop#2 j as ct > �► Kenai, Alaska Mi SWAG !s rw A Schlumberger Company - Drilling Fluid Summary Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage#2 Description: SEC. 9/T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 11/15/2011 11/16/2011 11/17/2011 11/18/2011 11/19/2011 Depth ft 8577 ' 8577 r 8577 r 8577 r 8577 TVD ft r 5110 r 5110 ♦ 5110 r 5110 r 5110 Activity Cementing BOPE Test LID DIP Prepare to Displace Cleaning Rig Pits Mud Type Flo-Pro NT Flo-Pro NT Flo-Pro NT 6%KCL Brine 6%KCL Brine Hole Size in 8500 8.500 8.500 8.500 8.500 arc Volume bbl 1355 873 837 840 594 Flow Rate gal/min arc Pressure psi Average ROP Sample From PIT PIT PIT PIT PIT Time Taken P 2100 22:30 22:30 23:00 12:00 Row Line Ten-p 'F 88 NA NA NA NA Mud Weight lb/gal 9.1 9.1 9.1 8.7 8.7 Mud Temp `F 85 70 70 Funnel Viscosity s/qt as 46 46 Rheology Temp `F 120 20 20 R600 37 37 37 R300 27 26 26 R200 20 19 13 R100 14 15 14 R6 5 6 5 R3 4 5 4 PV cP 1) 11 11 YP Ib/100ft' 17 15 15 10 s Gel lb/130ft' 5 6 6 10 m Gel lb/100ft' 8 8 8 30 m Gel lb/130ft' 1) 9 8 API FL cc/30min 7.4 7.4 7.5 HTHP FL cc/30min HTHP FL Temp `F Cake API 1 1 1 Cake HT Solids %Vol 4.5 5 4.5 Oil %Vol 1 1 1 Water %Vol 94.5 94 94.5 Sand %Vol 02 025 025 MBT Ib/bbl 8.5 13 1) pH 9.9 9.7 9.8 pH Temp `F 80 70 70 Alkal Mud(Pm) Pf _ 0.1 0.1 0.1 _ Mf 18 185 1.9 Chloride mg/L 20000 20000 13000 34900 34900 Hardness,Ca 480 400 440 DissolvedOxygen ppm Conqor 404 ppm Potassium mg/I 13500 13000 17800 38500 38500 Mi SWAPCINGSA Cook Inlet Natural,Gas Well: Cannery Loop#2 as a °✓¢ A Schlumberger Company � STORA- Kenai, Alaska HYDRAULICS SUMMARY Mi SWACO ,.: - A Schlumberger Company * HYDRAULICS SUMMARY Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage#2 Description: SEC. 9/T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 10/28/2011 10/29/2011 10/30/2011 10/31/2011 11/1/2011 11/2/2011 11/3/2011 11/4/2011 Depth ft ' 117 r 1556 ' 2731 ' 2731 ' 2731 r 3450 ' 6893 Days Since Spud *RHEOLOGICAL PROPERTIES Mud Weight lb/gal ' 8.5 ' 9.0 ' 9.0 ' 9.0 r 9.0 9.05 r 9.3 Plastic Visc cP ' 9 ' 8 ' 14 ' 13 ' 14 ' 11 ' 14 Yield Point lb/100ft= 7 18 16 16 14 13 27 3-rpm Reading Fann deg ' 2 ' 9 ' 8 ' 8 ' 8 ' 6 ' 10 np Value ' 0. ' 0. ' 0.5067 ' 0.6626 ' 0. ' 0. ' 0.6586 ' 0.5099 Kp Value lb-s^n/100ft=' 0. F. 0. ' 0.8063 ' 0.3852 ' 0. ' 0. ' 0.3126 ' 1.3724 na Value ' 0. ' 0. ' 7. ' 6. ' 0. ' 0. ' 5. ' 8. Ka Value lb-s'n/1001) *FLOW DATA Flow Rate gal/min' 0 0 ' 603 ' 606 ' 0 ' 0 r 558 ' 609 Pump Pressure psi 1308 1385 1600 1760 Pump bhp * ' 460 * * * ' 521 ' 625 *PRESSURE LOSSES Drill String psi 3u I * * ' 607 r 884 Bit psi 349 * * ' 336 ' 412 Annulus psi * * e S * * * ' 21 ' 51 Total System psi * * ' 649 * ' * ' 964 ' 1347 *BIT HYDRAULICtr"' Nozzels 1/32" 3x18 18x3 4x14 4x14 Nozzles 1/32" 16 16 3x11 3x11 Bit Pressure 9 b * * ' 26 * * * ' 21 ' 23 Bit hhp * * ' 120 * * * ' 109 ' 146 Bit HIS (index) * * ' 0.6 * * * ' 0.93 ' 1.24 Jet Velocity ft/s * * ' 205 * * * ' 203 ' 222 Impact Force lbf * * ' 577 * * ' 532 ' 652 *DRILL COLLAR ANNULUS Velcosity ft,min * * ' 68 * ' 229 ' 250 Critical Velocity ft/min * * ' 421 * - * ' 457 ' 687 Reynolds Number * * ' 108 * - * ' 896 ' 576 Crit Re(Lam-Tram) * * ' 2776 * - * ' 2568 ' 2771 *DRILL PIPE ANNULUS Velocity ft/min * * ' 58 * * * 1(19 ' 119 Critical Velocity ft/min * * ' 397 * * r 361 ' 522 Reynolds Number * + 84 * * * 423 253 Crit Re(Lam-Tram) * * 2776 ' * * 2568 2771 *HOLE CLEANING Slip Velocity ftimin * * 33 - ' 16 74 Rising Velocity ft/min * * 25 - - 9; 95 LifmgCapacity % * * 43 ' * 55 79 Cutting Cone % * * 11.81 * * - 0.0 0.0 Penetration Rate ft h 175 175 *CASING SHOE PRESSURI ECD Ib/dal * * 9.09 * * * 9.19 9.55 ECD+Cuttings lb/ml * * 9.76 * * * 9.19 9.55 *TOTAL DEPTH PRESSURES ECD Ib/gal * * 9.12 * * * 9.22 9.62 ECD+Cuttings lb/gal * * 9.79 * * * 9.22 9.92 ArN IFE MI V�//0► Cook Inlet Nafural;Cas s c CINGSA STORAC 1 - __ - Well: CanneryLoop#2 ' '' ''Po A Schlumberger Company ag..a. Kenai,Alaska M!be��er Company HYDRAULICS SUMMARY Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage#2 Description: SEC. 9/T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 11/5/2011 11/6/2011 11/7/2011 11/8/2011 11/9/2011 11/10/2011 11/11/2011 11/12/2011 Depth ft' 6893 ' 7756 ' 7756 r 7756 ' 7756 ' 7756 ' 7756 ' 8321 Days Since Spud *RHEOLOGICAL PROPERTIES Mud Weight lb/gal r 9.3 ' 9.1 ' 9.1 ' 9.1 ' 9.0 * 9.3 9.2 ' 9.1 Plastic Visc cP' 14 r 10 ' 11 ' 12 ' 12 ' 10 ' 12 ' 10 Yield Point Ib/100ft= 27 16 15 15 14 14 20 17 3-rpm Reading Fann deg' 10 ' 5 ' 5 ' 5 ' 5 ' 4 ' 10 ' 5 np Value ' 0.5099 ' 0.5403 ' 0. ' O. ' O. ' O. ' 0. ' 0.5205 Kp Value Ibys^n/I00ft'' 1.3724 ' 0.7572 ' O. ' O. ' 0. ' 0. ' 0. ' 0.8952 na Value ' 8. ' 4. ' 0. r 0. r O. ' O. ' 0. ' 4. Ka Value lb-s'n/I00ft= *FLOW DATA Flow Rate gal/min' 609 ' 612 ' 0 ' 0 ' 0 0 ' 0 ' 387 Pump Pressure psi 2320 2560 2560 1250 Pump hhp' 824 ' 914 * * * * * ' 282 *PRESSURE LOSSES Drill String psi' 1030 ' 1017 * * * * * ' 450 Bit psi' 412 ' 406 * * * * * F 178 Annulus psi' 62 ' 37 * * * * * ' 128 Total System psi' 1504 ' 1461 * * * * * ' 757 *BIT HYDRAULICS Nozzels 1/32" 4x14 4x14 4x14 ' 3x13 3x13 Nozzles 1/32" 3x11 3x11 3x11 3x14 3x14 Bit Pressure °-a' 18 r 16 * * * * * ' 14 Bit hhp' 146 ' 145 * * * * * ' 40 Bit HIS (index)' 1.24 ' 1.23 * * * * * ' 0.71 Jet Velocity ft/s' 222 ' 223 * * * * * ' 148 Impact Force lhf' 652 ' 644 * * * * * ' 270 *DRILL COLLAR ANNULUS Velcosity ft/min 250 251 * * * * * 201 Critical Velocity ft/min 690 506 * * * * * 486 Reynolds Number 574 960 * * * * * 729 Crit Re(Lam-Tram) 2771 2730 * * * * * 2757 *DRILL PIPE ANNULUS Velocity ft/min 119 120 * * * * *. 201 Critical Velocity ft/min 520 371 * * * * * 593 Reynolds Number 255 467 * * * * * 1302 Crit Re(Lam-Tram) 2771 2730 * * * * * 2757 *HOLE CLEANING Slip Velocity ft/min 24 33 * * * * * 31 Rising Velocity ft/min 95 87 * * * * * 170 Lifmg Capacity °,i. 79 73 * * * * * 85 Cutting Cone % 0.0 0.0 * * * * * 0.0 Penetration Rate ft/h *CASING SHOE PRESSURES ECD lb/gal 9.55 9.24 * * * * * 9.56 ECD+Cuttings lb/gal 9.55 9.24 * * * * * 9.56 *TOTAL DEPTH PRESSURES ECD lb/gal 9.62 9.29 * * * * * 9.63 ECD+Cuttings lb/gal 9.62 9.29 * * * * * 9.63 e IFE Cook Inlet Natural;Gas MI SWAGin ---- CINGSA STORAGE s' — Well: Cannery Loop#2 as a A Schlumberger Company _. Kenai, Alaska Mi SWAC • .£».,, A Schlumberger Company }� HYDRAULICS SUMMARY Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage#2 Description: SEC. 9/T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 11/13/2011 11/14/2011 11/15/201 1 11/16/2011 11/17/2011 11/18/2011 11/19/2011 Depth ft F 8577 F 8577 ' 8577 F 8577 r 8577 r 8577 ' 8577 Days Since Spud *RHEOLOGICAL PROPERTIES Mud Weight lb/gal' 9.1 ' 9.1 r 9.1 r 9.1 r 9.1 r 8.? 8J Plastic Visc cP' 10 r 11 r 10 ' 11 r 11 Yield Point lb/1001C 16 16 17 15 15 3-rpm Reading Fann deg r 4 r 4 ' 4 r 5 r 4 np Value 0. 0. 0. 0. 0. 0. 0. Kp Value lb.s^n/I00ft 0. 0. 0. 0. 0. 0. 0. na Value 0. 0. 0. 0. 0. 0. 0. Ka Value Ibys^n/100II *FLOW DATA Flow Rate gal/min 0 0 0 0 0 0 0 Pump Pressure psi Pump hhp * * * * * * *PRESSURE LOSSES Drill String psi * * * * * Bit psi * * * Annulus psi * Total System psi * * * * xx *BIT HYDRAULICS „ Nozzels l/32" 3x13 3x13 3x13 Nozzles 1/32" 3x14 3x14 3x14 Bit Pressure "o * * * * * * Bit hhp * * * * * Bit HIS (index) * * * * x Jet Velocity ft/s * * * * _ "` Impact Force Ibf * * * * *DRILL COLLAR ANNULUS Velcosity ft/min * * * * * * * Critical Velocity ft/min * * * * * * * Reynolds Number * * * * * * * Crit Re(Lam-Tram) * * * * * * *DRILL PIPE ANNULUS Velocity ft/min * * * * * * * Critical Velocity ft/min * * * * * * * Reynolds Number * * * * * * * Crit Re(Lam-Tram) * * * * * * *HOLE CLEANING Slip Velocity twin * * * * Rising Velocity ft/min * * * Tiling Capacity % * * * * * * * Cutting Conc 910 * * * * * * * Penetration Rate ft/h *CASING SHOE PRESSURES ECD Ih/gal * * * * * * * ECD+Cuttings Ib/gal * * * * * * *TOTAL DEPTH PRESSURES ECD I[/cal * * * * * * * ECD+Cuttings lb/gal * * * * * * flFE CINGSA MI 'S1N14CC7 Cook Inlet N[afuralGas STORA( Well: Cannery Loop#2 as a o- A Schlumberger Company Kenai,Alaska DAILY DISCUSSION RECAP 10/28/2011 TD=O Report No.=1 Rigging up. Prepare to begin taking on water in the rig pits and building spud mud with Bentonite Gel. Prepare to begin building mud. 10/29/2011 TD=117 Report No.=2 Continued picking up drill pipe and heavy weight DP. Built—600 bbls of 8.7 ppg spud mud.Added biocide to the Flo-Pro mud in the tank farm to help prevent bacterial growth. Also,centrifuging this mud to lower weight and remove drill solids. 10/30/2011 TD=1652 Report No.=3 Tested SP,lines to 2500 psi.. TIH and spud well. Continued drilling to 1,652'MD(1,638'TVD). Running water at 30-40 bph to maintain volume.Adding Gel&Gelex to maintain viscosity.Used Flowzan for sweeps. Sweeps result in 100-200%additional cuttings. 10/31/2011 TD=2731 Report No.=4 Drilled to TD of 2,731'MD(2,422'TVD).Made wiper trip to HW,circulated BU and pumped dry job before pulling out of hole. Continue to run water at 30-50 bph to maintain volume.Adding Gel and Gelex to maintain viscosity.Added soda ash to treat out calcium and maintain pH at 9.5-10.Began adding PolyPac Supreme at 2300'to lower fluid loss.Running the centrifuge to reduce mud weight and drill solids. Drilled to TD of 2,731'MD. Prepare to run 13 3/8" casing. 11/1/2011 TD=2731 Report No.=5 RU to run casing with Weatherford crew.Ran 67 joints 13.375"casing.RD casing equipment.TIH with DP and sting in tool to 2,677'. Circulate mud with cement line.Pumped 35 bbl MUDPUSH spacer @ 10.2 PPG,309 bbl lead cement @ 12.0 PPG, 63 bbl tail cement @ 15.4 PPG,displaced with mud. Est. 15%washout.No losses to formation. Pre-treated mud with sodium bicarbonate and Desco in preparation for the cement job.Retarded excess cement from the cellar with citric acid.Transferred spud mud to Tanks 2&5.Cleaned mud pits. Ran 13 3/8"casing. Performed cement job. Prepared to ND/NU for 12.25"section. 11/2/2011 TD=2731 Report No.=6 WOC.Nipple down diverter.Perform well head work.Nipple up and test BOPE. Cleaned all pits and lines;transferred—800 bbls of spud mud to the tank farm for centrifuging and later re-use;transferred —600 bbls of old/centrifuged Flo-Pro from the tank farm to the rig pits;currently mixing and re-conditioning this mud. IFE M i SWAPS) CINGSA Cook Inlet Natural;Cas STOAAC� '� Well: Cannery Loop#2 A Schlumberger Company Kenai,Alaska 11/3/2011 TD=3450 Report No.=7 Test BOPE;pressure test casing/shoe;P/U BHA-RIH;tag float shoe @2719';drill out shoe track,20'new hole to 2751';5' cement below shoe;monitor well;displace to 9 PPG Flo-Pro NT;FIT to 15 PPG EMW;drilled to 2965';change/replace pump expendables;drilled to @3445'@midnight Re-conditioned—600 bbls of old 9.0 ppg Flo-Pro.Heated to 90 degrees with a steam line in the rig pits.Displaced well to 9.0 ppg Flo-Pro.Pumped a 30 bbl high vis fresh water spacer followed by 377 bbls to displace the well.Transferred—400 bbls of spud mud from down hole to the tank farm.Mixed 2 X 200 bbl batches of fluid to add to active system 11/4/2011 TD=5393 Report No:8 Directionally drilled @5392';pumped 32 bbl viscous sweep around;circulate/condition;back ream up to 3383'at report time Maintain viscosity with Flowzan.Running the centrifuge continuously to control mud weight/drill solids.Pumped a 40 bbl high vis sweep at 5100',200%increase in cuttings.Added Kla-Gard and KC1 for clay inhibition.Added Conqor 404 for corrosion control.Ran centrifuge during short trip.Changing shaker screens to 200 mesh during short trip--all screens. 11/5/2011 TD=6893 Report No.=9 Back reamed @3383-2712';service top drive;RIH to 5392';circulate around 40 bbl Nut Plug sweep(10 ppb Med Nut Plug); drilled to @6733';CBU--service top drive;drilled ahead to @7026'about report time midnight Increasing lubricant concentration to @4%per company request;adding water @15 bph;running centrifuge continually while circulating 11/6/2011 TD=7756 Report No:10 Drilled @7026-7307';circulate bottoms up--copious sand to surface;drilled @7307-7756'(TD);circulate/condition/survey-- lost returns;pumped 40 bbl LCM pill;pulled to 7462'--tight spot;dropped first ball to attempt to open Well Commander with 3400 psi;build volume;weight pressure release;pumped 700 stks;dropped second ball to isolate BHA;pressured up;unable to pump;POOH without pumping;back ream tight spots as needed;pulling wet After reaching TD and circulating bottoms up,began losing fluid(60 bbls in 10 minutes).Pumped a 40 bbl 25 ppb Safe Carb LCM pill through the BHA.Losses slowed but continued.Built a 100 bbl 100 ppb LCM pill consisting of 25%fine,50% medium,and 25%coarse calcium carbonate.Built pit volume back up to 600 bbls in the active pits. 11/7/2011 TD=7756 Report No.=11 Reaming/back reaming without pump;tripped out to shoe on elevators from 5201';tripped out--L/S BHA;found ball in jars; cleaned up tools;P/U new BHA#3--RIH @2736';circulate/condition and fill pipe;washing and reaming to bottom No products added 11/8/2011 TD=7756 Report No:12 Wash/ream 5543-5703';RIH-wash down,tag @7756';lost returns;spot 100 bbls LCM pill on bottom;(162 bbls lost);pulled 10 stds--monitor well;static;CBU while adding Asphasol/G-Seal;spotted lube pill(225 bbls with 3.5%Lo-Torq added); POOH to shoe--monitor;POOH-L/D BHA;changed/tested rams;rig up to run casing string Spotted 100 bbl 100 ppb LCM pill on bottom.Losses stopped.After pulling 10 stands,conditioned mud with Asphasol and G- Seal. Spotted a 225 bbl 3.5%lubricant pill at 6800'for a total of 6-7%lubricant from 6800'to 5300'. IFE Mt SWACCook Inlet Nafural;Gas STORA Well: Cannery Loop#2 as a ,� CINGSA A Schlumberger Company Kenai,Alaska 11/9/2011 TD=7756 Report No.=13 Rig up--run casing to 2698';circulate/condition mud for casing volume;run casing to 6034'--filled casing with 35 bbl LCM pill;run casing--lost returns @6074';lost 40 bbls per 10 joints;ran casing to 768 1'--packed off;worked casing string; pressured up/bled pressure off;regained partial returns Batch mixing volume as needed;mixing LCM 11/10/2011 TD=7756 Report No.=14 Run casing/work pipe @7675-7718';pumped 40 bbl 100 ppb LCM pill;landed casing;rig down Weatherford casing tools; prep for cement job; Schlumberger computer issues;ran primary and secondary cement jobs; dumped cement returns at surface;cleaned up;flush stack and well head;install pack off;test;change rams--test;l/d tools During cementing moved 198 bbls mud from active to storage;transferred 83 bbls water from storage to active;mixed in batches to maintain volume to offset losses down hole 11/11/2011 TD=7756 Report No:15 Rigged down from casing run; service top drive;test BOPE;P/U BHA;test/orient mud motor;RIR with HWDP @953';pick up drill pipe;cut/slip drill line;orient tools;RIH at report time Made up 100 bbl LCM pill in pit#6(Safe Carb 20,40,250;G-Seal;MIX II);conditioned surface volume for drill out;Steel- Lube put in warm storage for use 11/12/2011 TD=8417 Report No.=16 RIH @3470'-wash/ream past DV collar;hard cement @3505-3730';cleaned down to 3916';circ./cond.to clean hole of cement;pressure tested casing;RIH @7650';washed out cement,drilled FC,FS out to bottom @7756';no losses;drilled new hole to 7776'-circ/cond;FIT--2 runs;drilled ahead to 8512'@midnight;no losses noted Mixed additional LCM pill-40 bbls in pill pit(35 PPB mix of Safe Carb 40/250,G-Seal)per company man request;have @100 bbls LCM mix in pit 6(@100 PPB);treated cement contamination with Citric Acid/SAPP 11/13/2011 TD=8577 Report No:17 Drilled @8512-8577'(TD);circulate and condition until hole clean;POOH--pumped out;hole tight @8085';back reamed @8095-7746'(casing shoe);circulate and condition;dry job;tripped out;L/D BHA;rigged up for wireline logs Consolidated mud in pits;transferred volume to storage pits;moved LCM pill from pit 6 to pit 5;pit 6 cleaned and ready for completion fluid mixing 11/14/2011 TD=8577 Report No:18 Slickline logging---unable to get below 7362';rig down;prepare to pick up BHA for wiper trip;made up BHA--RIH to 8220'; started taking weight from 7664';wash/ream to bottom @8577';pumped out to shoe;dry job--POOH on elevators @report time 11/15/2011 TD=8577 Report No:19 1��1FE MI SWAC CINGSA Cook Inlet Natural Gas ----w°= Well. Cann Loo #2 STORA ;'¢ 'a A Schlumberger Company Kenai,Alaska P �� ax Tripped out;L/D HWDP,jars;rigged up--ran 7" liner slowly on 5"drill pipe to 7675';M/U cement head;tagged bottom @8577';rig up cementers,lines;CBU at 66 spm;pre job safety meeting for cementing 11/16/2011 TD=8577 Report No.20 Primary cement job w/5 bbls water,32 bbls 11.5 ppg mud push spacer,42 bbls 14 ppg cement;drop wiper dart;displace w/169 bbls mud;bumped plug--pressured up;clean out cement stringers above liner;dry job--POOH;laid down tools;service top drive;test BOPE--controls would not function;called electrician--repaired;continued the BOPE test 11/17/2011 TD=8577 Report No.=21 Test BOPE;L/D test tools;P/U BHA--RIH with polishing mill;cleaned out from top of liner @7603'to 7611';pressure tested; POOH while inspecting and laying down drill pipe Building 200 barrel batches of 6%KCL for transfer to tank#1 in preparation for displacement.Transferring excess Flo-Pro from the rig pits to the tank farm for re-use on the next well.Moved total of 459 bbls brine to storage;mixed another 200 bbls brine--hold in mud pits 11/18/2011 TD=8577 Report No.=22 L/D BHA,polish mill;rig up and run completion tubing string Displace well to 6%KCL by reverse circulating.Spotted 2 drums of CONQOR 303 (corrosion inhibitor)and 5 bbls of diesel (freeze protect)in the annulus.Transferring displaced mud from down hole to Tank#1 in the tank farm. 11/19/2011 TD=8577 Report No.=23 Complete displacement to 6%KCL.Test well.Nipple down BOPE.Clean pits.Nipple up tree. Transferred 9.1 ppg Flo-Pro to the tank farm.Tank farm is full.3 tanks of Flo-Pro and 2 tanks of spud mud to be re-used on the next well.Cleaning all rig pits and lines.AIMM is hauling off the rinsate.Mud engineers released today.This is the last mud report for CLU Storage#2. !elm Mi SWA_ C •. Cook Inlet Nafural��as .,, CINGSA STORAC�� Well: Cannery Loop#2 as a o- w A Schlumberger Company -. Kenai,Alaska FLUID VOLUME SUMMARY Volume Account Report MSWAC A Schlumberger Company erator: CINGSA Well Name: CLU Storage #2 Mud Volume(bbl) Mud Built(bbl) Volune lost (bbl) a.Int. 0 9,— a Y1 OI 0 O v W vi Date Size Depth Mud Type MW x a a:1 =i `y E 7 a a x G 0 oo C 0 A 0 1 E +1 .- A p0 7 N'C' w U C U i O E E A a I a CCa 1 y U u. J o x 7 u. 10/28/2011 13.375 Gel Spud Mu 1045 1045 - 10/29/2011 13.375 117 Gel Spud Mu 85 42 616 966 1623 640 17 857 657 79 10/30/2011 13.375 1556 Gel SpudMu 9 437 644 986 2048 470 4 474 1132 50 10/31/2011 13.375 2731 Gel SpudMu 9 757 644 966 2367 368 5 373 1505 54 11/1/2011 13.375 2731 Gel SpudMu 9 409 58 1888 2155 5 5 1510 217 1V2/2011 13375 2731 Gel SpudMu 9 409 600 1088 2097 1510 58 11/3/2011 9.625 3450 Flo-ProNT 9.05 477 678 1088 2243 250 47 297 1807 58 93 11/4/2011 9.625 6893 Flo-Pro NT 9.3 747 678 1088 2513 555 32 587 2394 100 100 116 1115/2011 9.625 6893 Flo-Pro NT 9.3 956 678 1088 2722 720 68 788 , 3182 250 330 11/6/2011 9.625 7756 Flo-ProNT 9.1 1076 562 1088 2726 425 36 461 3643 457 11/7/2011 9.825 7756 Flo-Pro NT 9.1 1076 562 1088 2726 3643 11/8/2011 9.825 7756 Flo-ProNT 9.1 1141 456 1068 2685 100 22 122 3766 163 1V9/2011 9.625 7756 Flo-Pro NT 9 1141 503 1088 2732 360 13 373 4139 326 'V10/2011 9.625 7756 Flo-Pro NT 9.3 1034 526 1283 2843 83 15 98 4237 83 3 11/11/2011 7 7756 Flo-ProNT 9.2 507 650 1283 2440 _ 90 13 103 4340 506 1V12/2011 7 8321 Flo-ProNT 9.1 549 680 1283 2512 200 18 218 4558 55 91 11/13/2011 7 8577 Flo-ProNT 9.1 625 378 1464 2467 50 2 52 4610 96 11/14/2011 7 8577 Flo-Pro NT 9.1 825 380 1484 2469 2 2 4612 11/15/2011 7 8577 Flo-ProNT 9.1 570 485 1464 2519 46 4 50 4861 11/16/2011 7 8577 Flo-Pro NT 9.1 594 279 1664 2537 7 7 4669 139 1V17/2011 7 8577 Flo-ProNT 9.1 594 243 1664 2501 18 18 4886 54 1V18/2011 7 8577 6%KCLBr1n 8.7 594 246 1664 2504 3 3 4689 _ 1V19/2011 7 8577 8%KCLBrin 8.7 594 1766 2360 4689 144 IFE Cook Inlet Natural Gas MI SWAC a CINGSA STORAGE Well: Cannery Loop#2 as a , A Schlumberger Company Kenai, Alaska HIGHLIGHTS ➢ All casing strings were run and cemented without problems. ➢ All the required mud products were available and delivered to the well site in a timely manner. ➢ There were no HSE incidents attributable to MI SWACO personnel during the drilling of the Cannery Loop #2 well. ➢ The MI SWACO dewatering unit was utilized to centrifuge fluid in order to maintain the proper mud weight. ➢ The Well Commander activation balls were lodged in the jars above the tool. LESSONS LEARNED AND RECOMMENDATIONS ➢ Add Pecan Nut Plug Medium to the MUD PUSH cement spacer for clear identification at the shakers to prevent cement getting into the pits, etc. ➢ Consider displacing the well to 6% KCL with corrosion inhibitor prior to pulling out of the hole with the polish mill. In this way, the tubing is never exposed to the drilling mud. Another problem when running the tubing through a mud column is that the mud overflows every joint on to the rig floor. This requires washing the mud out of the threads on every joint. If the tubing were run through the 6% KCL this would not be a problem. ➢ Confirm the body ID of all strings above the Well Commander to allow clear pathway for the activation balls. IFE . .. ._........... Cook Inlet Natural.-Gas MI SWAG CINGSA STORAO Well: Cannery Loop#2 as a A Schlumberger Company Kenai, Alaska APPENDIX 1 elm Cook Inlet Natural-Gas Mi SWA_CO., CINGSA STORAC A Schlumberger Company Well: Cannery Loop#2 as_a_. ¢ ' Kenai, Alaska PRODUCT CONCENTRATIONS Mi SV1/ACt ,.- Product Concentration A Schlumberger Company - Operator: CINGSA Contractor: Nabors Drilling Well Name: CLU Storage#2 M-I Engineer: L.Rooney/J.Brown Location: Kenai, Alaska Rig Name: Nabors 105E Field/Area: Cannery Loop/Kenai Stock Point: Product Products Concentrations(lb/bbl) Name 28-Oct-11 29-Oct-11 30-Oct-11 31-Oct-11 1-Nov-11 2-Nov-11 3-Nov-11 4-Nov-11 ASPHASOL SUPREME 50 LB BG 0.922 3.393 2.250 CAUSTIC SODA 50 LB BG 0.315 0244 0.506 FLO-VIS PLUS 25 LB BG POLY PAC SUPREME UL 50 LB BG 0239 0.237 0.911 1470 1204 POTASSIUM CHLORIDE(KCL) 50 LB BG 9.878 15.905 14.851 CONQOR 404 55 GA DM 0.065 0.752 1025 M-I WATE(BARITE) 50 LB BG 2.642 11190 4.535 3.504 2.323 SODIUM METABISULFITE 50 LB BG 0.303 0.234 0.155 SAFE-CARE 10 50 LB BG SAFE-GARB 40 50 LB BG SAFE-CARB 250 50 LB BG SODA ASH 50 LB BG 0.456 0.395 1256 1567 0.647 0.806 0.707 KLA-GARD 55 GA DM 0.250 1737 2.309 M-I GEL EXPORT 50 LB BG 22.586 15.691 11768 11675 4.761 3.679 2.439 GELEX BENT EXTENDER 2 LB BG 0.024 0.023 0.023 0.009 0.007 0.005 CITRIC ACID 50 LB BG 0.531 0.215 0.166 0.110 CF DESCO II 25 LB BG 0.354 0.144 0.111 0.074 SODIUM BICARBONATE 50 LB BG 0.708 0.465 0.360 0238 _CONQOR A303 55 GA DM 0.833 0.643 0.427 DEFOAMX _ 5GACN 0.127 0.071 0.053 0.052 0.021 0.016 0.011 MDC II FINE 25 LBB G MX II MEDIUM 25 LB BG M-I SEAL FINE 40 LB BG M-I SEAL MEDIUM 40 LB BG PECAN NUT PLUG MEDIUM 50 LB BG PECAN NUT PLUG CSE 50 LB BG SAPP 50 LBB G G-SEAL 50 LB BG BIOZAN 50 LB BG RESINEX 50 LB BG 0.363 0.280 0.760 MX II COARSE 25 LB BG SAFE-CARE 20 50 LB BG MAGMA FIBER REG 30 LB BG MAGMA FIBER FINE 25 LB B G LOTORQ 1 GA 1.213 4.942 4.776 _DUO-VIS 25 LB BG MYAQDE GA25 5GACN 0.317 0.178 0.131 0.130 0.053 0.041 0.027 SCREENKLEEN 1GA FLOWZAN 25 LB BG 0.092 0.140 0.139 0.597 0.921 1013 STEEL LUBE EP 55 GA DM PECAN NUT PLUG FINE 50 LB BG LUBE 776 55 GA DM 0.642 0.496 0.329 APMN IFE Mi SWAG Cook Inlet Natural Gas CINGSA STORAQj Well: Cannery Loop#2 ,>a_ A Schlumberger Company as,a j Kenai, Alaska Mi SWAC_9- Product Concentration A Schlumberger Company Operator: F.Faulkner/B.Smith Contractor: Nabors Drilling Well Name: CLU Storage#2 M-I Engineer: L.Rooney/J.Brown Location: Kenai, Alaska Rig Name: Nabors 105E Field/Area: Cannery Loop/Kenai Stock Point: Product Products Concentrations(Ib/bbl) Name 5-Nov-11 6-Nov-11 7-Nov-11 8-Nov-11 9-Nov-11 10-Nov-11 11-Nov-11 12-Nov-11 ASPHASOL SUPREME 50 LB B G 2.578 1889 1.889 2.635 2.136 2.009 1885 1.586 CAUSTIC SODA 50 LB BG 0.439 0.379 0.379 0.349 0.283 0.266 0.249 0.210 FLO-VIS PLUS 25 LB BG POLYPAC SUPREME UL 50 LB BG 0.888 0.767 0.767 0.838 0.679 0.639 0.659 0.846 POTASSIUM CHLORIDE(KCL) 50 LB BG 12.362 13.929 13.929 14.460 13.396 13.173 13.142 11967 CONQOR 404 55 GA DM 1.074 0.787 0.787 0.723 0.586 0.551 0.517 1102 M-I WATE(BARITE) 50 LB BG 1.496 1096 1096 3.806 3.085 7.507 7.043 5.926 SODIUM METABISULFITE 50 LB BG 0.123 0.090 0.090 0.083 0.067 0.063 0.059 0.050 SAFE CARB 10 50 LBB G SAFE-CARE 40 50 LB BG 3.101 3.101 2.848 5.607 5.561 7.022 6.709 SAFE-CARE 250 50 LB BG 2.029 2.029 2.696 2.136 3.057 4.072 3.862 SODA ASH 50 LB BG 0.726, 0.756 0.756 0.695 0.563 0530 0.497 0.416 KLA-GA RD 55 GA DM 2.397 1757 1757 1614 1308 1.230 1154 2.438 M-I GEL EXPORT 50 LB BG 1.570 1151 1151 1057 0.857 0.806 0.756 0.636 GELEX BENT EXTENDER 2 LB BG 0.003 0.002 0.002 0.002 0.002 0.002 0.001 0.001 CITRIC ACID 50 LB BG 0.071 0.052 0.052 0.048 0.039 0.036 0.034 1.375 CF DESCO II 25 LB BG 0.047 0.035 0.035 0.032 0.153 0.287 0269 0.226 SODIUM BICARBONATE 50 LB BG 0.154 0.113 0.113 0.103 0236 0.937 0.879 0.740 CONQOR A303 55 GA DM 0275 0.201 0.201 0.165 0.150 0.141 0.132 0.111 DEFOAM X 5 GA CN 0.007 0.005 0.005 0.005 0.004 0.004 0.003 0.003 MDC II FINE 25 LB BG MIX II MEDIUM 25 LB BG M-I SEAL FINE 40 LB BG M-I SEAL MEDIUM 40 LB BG PECAN NUT PLUG MEDIUM 50 LB BG 0.181 0.132 0.132 0.122 0.099 0.093 0.087 0.073 PECAN NUT PLUG CSE 50 LB BG SAPP 50 LB BG 0.073 G-SEAL 50 LB BG 0.666 0.540 0.508 1.078 1053 BIOZAN 50 LBB G RESINEX 50 LB BG 1.709 1.252 1.252 1.150 0.933 0.877 0.823, 1.602 MIX II COARSE 25 LB BG 0.301 0.253 SAFE-CARE 20 50 LB BG 1159 1159 2.731 2.214 4.227 5.470 4.603 MAGMA FIBER REG 30 LB BG MAGMA FIBER FINE 25 LB BG, LOTORQ 1GA 8.508 6236 6236 7.573 6.139 5.775 5.416 4.559 DUO-VIS 25 LB BG MYACIDE GA25 5 GA CN 0.017 0.013 0.013 0.012 0.010 0.009 0.008 0.037 SCREENKLEEN 1GA FLOWZAN 25 LB BG 0.697 0.699 0.699 0.709 0.765 0.834 0.858 0.976 STEEL LUBE EP 55 GA DM PECAN NUT PLUG FINE 50 LB BG _ LUBE 776 55 GA DM 0.957 2.613 2.613 2.400 1.946 1.830 1.717 1445 IFE Cook Inlet Natural:Gas Mi SWAPP,,, CNGSA STORA : ,,,,,,,::;--- Well: Cannery Loop#2 as a ,'( It' A Schlumberger Company ... „ Kenai, Alaska MI SWACa,-, ,-,,,,„... .-- Product Concentration A Schlumberger Company Operator: Contractor: Nabors Drilling Well Name: CLU Storage#2 M-1 Engineer: L.Rooney/J.Brown Location: Kenai, Alaska Rig Name: Nabors 105E Field/Area: Cannery Loop/Kenai Stock Point: Product Products Concentrations(lb/bbl) Name 13-Nov-11 14-Nov-11 15-Nov-11 16-Nov-11 17-Nov-11 18-Nov-11 19-Nov-11 ASR-IASOL SUPREME 50 LB BG 1522 1.519 1.447 1.435 1.407 1.402 1.402 CAUSTIC SODA 50 LB BG 0.201 0.201 0.191 0.190 0.1)6 0.1)5 0.185 FLO-VIS PLUS 25 LB BG POLYPAC SUPRBVE UL 50 LB BG 0.82 0.813 0.772 0.765 0.750 0.748 0.748 POTASSIUM CHLORIDE(KCL) 50 LB BG 11.482 11.460 -0.920 1).556 27.448 27.362 27.362 CONQOR 404 55 GA DM 1.057 1055 1.005 0.997 0.977 0.974 0.974 M-1WATE(BARITE) 50 LB BG 7.170 9.643 14.401 14.282 19.608 19.546, 1).546 SODIUM METABISULFITE 50 LB BG 0.048 0.048 0.045 0.045 0.044 0.044 0.044 SAFE-CARB 10 50 LB BG SAFE-CARB 40 50 LB BG 6.671 6.659 6.345 6.292 6.1)6 6.147 6.147 SAFE-CARS 250 50 LB BG 3.706 3.699 3.524 3.495 3.425 3.415 3.415 SODA ASH 50 LB BG 0.401 0.401 0.382 0.378 0.371 0.370 0.370 KLA-GARD 55 GA DM 2.339 2.335 2.225 2206 2.1)2 2.155 2.155 M-I GEL EXPORT 50 LB BG 0.611 0.609 0.581 0.576 0.564 0.563 0.563 GELEX BENT EXTENDER 2 LB BG 0.001 0.001 0.001 0.001 0.001 0.001 0.001 CITRIC ACID 50 LB BG 1319 1.316 1254 1.244 1.219 1.215 1.21) CF DESCO II 25 LB BG 0217 0.217 0.206 0205 0.201 0200 0200 SODIUM BICARBONATE 50 LB BG 0.70 0.708 0.675 0.669 0.656 0.654_ 0.654 CONQOR A303 55 GA DM 0.1)7 0.1)7 0.102 0.101 0.099 1190 1190 DEFOAM X 5 GA CN 0.003 0.003 0.003 0.003 0.003 0.002 0.002 MIX II FINE 25 LB BG MIX II MEDIUM 25 LB BG M-I SEAL FINE 40 LB BG M-1SEAL NEDIUM 40 LB BG PECAN NUT FLUGIVEDIUM- 50 LB BG 0.070 0.070 0.067 0.066 0.065 0.065 0.065 PECAN NUT PLUG CSE 50 LB BG . . SAPP 50 LB BG 0.070 0.070 0.066 0.066 0.065 0.064 0.064 G-SEAL 50 LB BG 1049 1047 0.998 0.990 0.970 0.967 0.967 BIOZAN 50 LB BG RESINEX 50 LB BG 1.537 1.534 1.462 1.450 1.421 1.41) 1.41) MIX Il COARSE • 25 LB BG 0.243 0242 0.231 0229 0224 0224 0224 SAFE-GARB 20 50 LB BG 4.41) 4.408 4.200 4.1)5 4.082 4.069 4.069 MAGMA FIBER REG 30 LB BG MAGMA FIBER FINE 25 LB BG LOTORQ iGA 4.374 4.366 4.00 4126 4.043 4.030 4.030 DUO-VIS 25 LB BG MYACIDE GA25 5 GA CN 0.036 0.119 0.113 0.1/2 0.113 0.110 0.11D SCREFNKLEEN 1GA FLOWZAN 25 LB BG 0.976 0.974 0.928 0.920 0.902 0.899 0.899 STEEL LUBE EP 55 GA DM FECAN NUT FLUG FINE 50 LB BG LUBE 776 55 GA DM 1.386 1.384 1.313 1.308 1.281 1.277 1.277 w..--.):.----- WE ____ z(!-135 (4(978' Vi` BAKER PRINT DISTRIBUTION LIST c, HUGHES COMPANY CINGSA INTERMEDIATE FINAL Yes (mandatory) WELL NAME CLU Storage#2 RUN NUMBER LWD (mandatory) FIELD Cannery Loop Unit BH SALESMAN Woods,Jim (mandatory) (mandatory) COUNTY Kenai Peninsula BH DISTRICT Alaska (mandatory) (mandatory) STATE Alaska PAGE OF (mandatory) LOG DATE: 11/13/2011 TODAYS DATE: 12/5/2011 (mandatory) DISTRIBUTION LIST AUTHORIZED BY: CINGSA (mandatory) HAS CLIENT BEEN INVOICED FOR ADDITIONAL PRINTS? Yes COMPANY FIELD FINAL (digitalCD ADDRESS(FEDEX WILL NOT DELIVER TO P.O.BOX) LOGS LOGS image) FILM PERSON ATTENTION #OF PRINTS #Ur NHIN I S #OF COPIES #OF COPIES U U - 4 4 U 4 1 PRA I 4 I 4 1 I I Attn:Tom Walsh,Rick Gentges,Rig 3601 C Street,Ste 822 Anchorage,AK 99503 2 AOGCC I 1 I 1 I I Attn: Christian Mahnken 333 West 7th Ave. Anchorage,AK 3 DNR 1 1 I Ctie® 1 Attn:William C.Barron-Director � ',::.,,. Dept.of Natural Resources Div.of Oil and Gas L,,i, 550 West 7th Ave. UtL 0r Anchorage,AK C 4 I 0 solos,oVicawoloI I 5 I l 0 1 I I TOTALS FOR THIS PAGE: 0 6 6 0 0 0 TOTALS FOR ALL PAGES: 0 6 6 0 0 0 2\\-\35 Cook Inlet Natural,-Gas i`{�2-`1- STORACa . .*, c: CD) Storage 2 Kenai Borough, Alaska October 30 to November 13, 2011 r ilk `11.01'• jjill 11 i Provided by: CANRIG ,,,,„,,,. .,,„..,,,... , , ,„ Approved by: Ari Berland Compiled by: RalphWinkelman Larry Resch Distribution Date: November 25, 2011 T.D. Date: November 13,2011 Page 1 of 1 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Monday, October 24, 2011 3:42 PM To: 'cperry@att.net' Cc: 'Richard Gentges' Subject: RE: CLU Storage 2 PTD -211135 Conrad, Sorry about that. I will include a copy of your message and the revised 401 for the record. At this time, I don't think it is necessary to formally submit a new 401. I wonder how I changed the 13-3/8" numbers around. As we discussed there were a lot of numbers that needed changing. I will bet not so many on the next document. Editing is not easy, but it demands great attention. Tom From: Conrad Perry [mailto:cperry@att.net] Sent: Monday, October 24, 2011 2:25 PM To: Maunder, Thomas E (DOA) Cc: 'Richard Gentges' Subject: CLU Storage 2 PTD - 211135 Tom, I just started reviewing the PTD for CLU Storage 2 and see there was some miss-communications and typos in the casing section. This is what I submitted with errors in yellow: 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quant Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including Driven 20" 133 X56 PE 97' 0 0 117.5' 117.5' N/A 16" 13 3/8" 68 J-55 BTC 2,712' 0 0 2465' 2086' 726 sxs lead/27 12 1/4" 9 5/8" 40 L-80 BTC 7,680' 0 0 8753' 4917' 508 sxs lead/196 stg 8 1/2" 7" 26 L-80 VamTop 1,352' 7,480' 4,894' 8,832' 5,154' 226 sxs 9 5/8"stage colla 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) The MD for the 13 3/8" should have been 2713' and the TVD @2408', You noted a correction to the length at 2465' which is incorrect. You corrected the 9 5/8" setting depth accurately. I have attached a corrected 10-410 form for your review. Please advise what is the best way forward. 10/24/2011 STATE OF ALASKA AL/-‘,,KA OIL AND GAS CONSERVATION COMM1....,ION PERMIT TO DRILL 20 AAC 25.005 1 a.Type of Work: 1 b. Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ 1 c.Specify if well is proposed for: Drill E Redrill ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply ❑., Multiple Zone 0 Coalbed Gas ❑ Gas Hydrates ❑ Re-entry ❑ Exploratory ❑ Service- WAG ❑ Service-Disp ❑ Service-Gstor ❑✓ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket Q Single Well ❑ 11.Well Name and Number: Cook Inlet Natural Gas Alaska,LLC Bond No. CLU Storage 2 3.Address: 6.Proposed Depth: 12.Field/Pool(s): P.O.Box 190989,Anchorage,AK 99519 MD: 8,832' TVD: 5,154' Cannery Loop/Sterling C pool 4a. Location of Well(Governmental Section):NAD 27 7.Property Designation(Lease Number): Surface: 570'FNL 1763 FEL SEC.9 T5N R11W ADL 391627 Top of Productive Horizon:7,655'MD/4,934'ND 8.Land Use Permit: 13.Approximate Spud Date: 1289'FEL 3009'FSL SEC.8 T5N R11W ADL 230925 9/22/2011 Total Depth:8,832'MD/5,154'ND 9.Acres in Property: 14. Distance to Nearest Property: 2431'FEL 2827'FSL SEC.8 T5N R11W 1272 207' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.RT Elevation above MSL: 53.5 feet 15.Distance to Nearest Well Open Surface: x-281845.28 y-2392982.60 Zone- 4 GL Elevation above MSL: 33 feet to Same Pool: 453 feet 16.Deviated wells:Yes Kickoff depth: 800' feet 17. Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 79.2 degrees Downhole: 2,280 Surface: 1,763 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD ND MD ND (including stage data) Driven 20" 133 X56 PE 97' 0 0 117.5' 117.5' N/A 16" 13 3/8" 68 J-55 BTC 2,713' 0 0 2713' 2408' 726 sxs lead/277 sxs tail 12 1/4" 9 5/8" 40 L-80 BTC 7,680' 0 0 7680' 4939' 550 sxs lead/196 sxs tail/490 2nd stg 8 1/2" 7" 26 L-80 VamTop 1,352' 7,480' 4,894' 8,832' 5,154' 226 sxs 9 5/8"stage collar @-3,500'MD 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth ND(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth ND(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat ❑✓ BOP Sketch E Drilling Program E Time v.Depth Plot ❑✓ Shallow Hazard Analysis Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name M.Colleen Starring Title Vice President Signature Phone 907-334-7659 Date Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: 50- Date: requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales:❑ Other: Samples req'd: Yes❑ No❑ Mud log req'd: Yes ❑ No ❑ H2S measures: Yes❑ No❑ Directional svy req'd: Yes ❑ No ❑ APPROVED BY THE COMMISSION DATE: ,COMMISSIONER Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate SEAN PARNELL,GOVERNOR ALASKA OIL AND GASSMITE 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 M. Colleen Starring FAX (907)276-7542 Vice President Cook Inlet Natural Gas Alaska, Inc. P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Unit, Sterling C Pool, CLU Storage 2 Well Cook Inlet Natural Gas Alaska, Inc. Permit No: 211-135 Surface Location: 570' FNL, 1763'FEL, Sec. 9, T5N, R11W, S.M. Bottomhole Location: 2431' FEL, 2827' FSL, Sec. 8, T5N, R11W, S.M. Dear Ms. Starring: Enclosed is the approved application for permit to drill the above referenced service well. 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. Sincerely, ' F Daniel T. Seamount, Jr. Chair DATED thisa- ( day of October, 2011. cc: Department of Fish 86 Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o ericl. (via e-mail) STATE OF ALASKA C IVE ' eiff ALA:._ .OIL AND GAS CONSERVATION COMMIS .N OCT 10 2011 % PERMIT TO DRILL 20 AAC 25.005 krial Oil&Gas Cons.Commission la.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone lc.Spec/ f0 a p, posed for: Drill Q Redrill ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply 0Multiple Zone 2Coalbed 9s s Hydrates ❑ Re-entry ❑ Exploratory ❑ Service- WAG ❑ Service-Disp ❑ Service Gstor 0 Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket Q Single Well ❑ 11.Well Name and Number: Cook Inlet Natural Gas Alaska,LLC Bond No. j 0.5(pSq 19y gi'l''l"' CLU Storage 2 3.Address: 6.Proposed Depth: 12.Field/Pool(s): P.O.Box 190989,Anchorage,AK 99519 MD: 8,832' TVD: 5,154, Cannery Loop/Sterling C pool 4a. Location of Well(Governmental Section):NAD 27 7.Property Designation(Lease Number): for if Surface: 570'FNL 1763 FEL SEC.9 T5N R11 W per(,2304l' ADL 30167-a, 'cs, PO On- Top of Productive Horizon:7,655'MD/4,934'TVD 8.Land Use Permit: / 13.Approximate Spud Date: 1289'FEL 3009'FSL SEC.8 T5N R11 W ADL 230925 / 9/22/2011 Total Depth:8,832'MD/5,154'TVD 9.Acres in Property: 14.Distance to Nearest Property: 2431'FEL 2827'FSL SEC.8 T5N R11 W 1272 207' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.RT Elevation above MSL: 53.5 feet 15.Distance to Nearest Well Open Surface: x-281845.28 y-2392982.60 Zone- 4 GL Elevation above MSL: 33 feet to Same Pool: 453 feet 16.Deviated wells:Yes Kickoff depth: 800' feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 79.2 degrees Downhole: 2,280 Surface: 1,763 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 X56 PE 97' 0 0 117.5' 117.5' N/A 16" 13 3/8" 68 J-55 BTC �,7T1' 0 0 2465' 2086' 726 sxs lead/277 sxs tail 12 1/4" 9 5/8" 40 L-80 BTC 7,680' 0 0 - 3'" Al",4941'"-.sxs lead/196 sxs tail/490 2nd stg 8 1/2" 7" 26 L-80 VamTop 1,352' 7,480' 4,894' 8,832' 5,154' 226 sxs Oi-fri vr`l-- e-- b .I f �� 0 ttci3ci 9 5/8"stage collar @-3,500.114DD 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Operations) 55 Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat ❑✓ BOP Sketch Q Drilling Program Q Time v.Depth Plot Q Shallow Hazard Analysis Diverter Sketch❑✓ Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name M.Colleen Starring Title Vice President Signature 7k.a..._ft4.. 7 Phone 907-334-7659 Date bet. JO, ,z0/y Commission Use Only Permit to Drill API Number: Permit Approval /� See cover letter for other Number: a/HASS" 50-/SS a0S99OG� Date: I lL /A 1 I . requirements. - Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed meths ,gas hydrates,or gas contained in shales:sir Other: ask o n9` Q(R,. . ..),, Samples req'd: Yes ❑ No All Mud log req'd: Yes ❑ o p' HZS measures: Yes ❑ N4 Directional svy req'd: Yes ENo ❑ PcAc�.z.r—`3 Cr-pst`N.voc--\cx.---r—� o,pr-c tcc .b(zs. aot�, k�a<�> . lw c�o,.t%O� 't-csk-‘v\'\-c�c9\ cep c-ovec�> , co Rica *o3sC.s.>Cvo>CA> 1500 p�� v`A:/ 2‘,0-•�v-�cc.tS\ S des\ pr-t.5 3cE \ Sc 3 t DO P'sb'N-(-3S,CS2. (� APPROVED BY THE COMMISSION i'D //L l/!j DATE: 4, ,COMMISSIONER ORIGINAL Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate Cook Inlet Natural-Gas GaS Cook Inlet Natural Gas Storage Alaska,LLC 3000 Spenard Road PO Box 190989 S TO R A Anchorage,AK 99519-0989 Main:907-334-7980 xf 9 Fax:907-334-7671 cg Q www.cingsa.com October 10, 2011 CE ED out 10 2011 Ms.Jody Colombie IM Special Assistant to the Commission Gas Cons.ConmU$ Alaska Oil and Gas Conservation Commission ' ► ko(1` &Anc ar 333 West 7th Avenue, Suite 100 ��� Anchorage,AK 99501 RE: Drilling Permit Application for Gas Storage Injection Well Cannery Loop Gas Storage Project Kenai,Alaska Dear Ms. Colombie, Enclosed for your information and handling is a Drilling Permit Application for Cook Inlet Natural Gas Storage Alaska, LLC's (CINGSA) CLU Storage 2 injection/withdrawal well. In our letter to you dated July 6th, CINGSA identified the CLU 6 well as the nearest producing well to CINGSA's proposed injection/withdrawal wells. The CLU 6 well had been producing from the Sterling C Pool but was shut-in at the end of July and the Sterling C Pool interval will be plugged and abandoned prior to the commencement of storage injections in April 2012 per the terms of an agreement between Marathon Alaska Production LLC and CINGSA dated March 25, 2011. This application contains two requests for variances to current AOGCC regulations and two requests for acceptance of CINGSA operations under those regulations. The variance requests are for the setting depth of the production packer and the need for 7" casing rams while running the production liner. The other requests are to accept CINGSA's determination that only a two ram stack is necessary and to allow 14 day intervals between BOPE testing. Details of these requests are on Page 33 - Regulatory Waivers and Special Procedures If you have any questions concerning the enclosed permit application, please feel free to contact me at 907-335-1488 (office), or 907-310-7322 (cell). Sincerely, Richard J. Gentges Senior Project Manager Enclosure CC: T.Arminski R.J. Gentges J. Lau C. Starring N. Thompson C. Perry(PRA) T.Walsh (PRA) Cook Inlet Nalural:Gas STORAQ , CINGSA DRILLING PROGRAM CLU STORAGE 2 Originator Date Conrad Per Approved by Date //o/i/ Ric and Gentges Approved by Date John Lau i Page AREA MAP 5 GENERAL RESERVOIR OVERVIEW 5 CINGSA CURRENT WELL PLANS 6 CINGSA FACILITIES MAP 7 SURVEYED LOCATION PLOT 8 WELL PAD LAYOUT 9 GENERAL WELL DATA 9 GEOLOGIC PROGRAM SUMMARY 10 SUMMARY OF POTENTIAL DRILLING HAZARDS 11 FORMATION EVALUATION SUMMARY 11 DRILLING PROGRAM SUMMARY 12 CASING PROGRAM 13 CASING DESIGN 13 MAXIMUM ANTICIPATED SURFACE PRESSURE 13 WELL CONTROL AND CASING DESIGN CALCULATIONS 14 BOPE PROGRAM 17 BOPE DIAGRAMS 17 CHOKE MANIFOLD 18 BOP STACK 19 WELLHEAD EQUIPMENT SUMMARY 20 DIRECTIONAL PROGRAM SUMMARY 21 21 Page POTENTIAL WELL INTERFERENCE• 22 DIRECTIONAL SURVEYING SUMMARY 22 DETAILED DIRECTIONAL PLANNING 23 WELL CLEARANCE REPORT 29 PLANNED WELL SUMMARY SHEET 30 DRILLING FLUID PROGRAM SUMMARY 31 DRILLING FLUID SPECIFICATIONS 31 SOLIDS CONTROL EQUIPMENT 32 CEMENT PROGRAM SUMMARY 32 REGULATORY WAIVERS AND SPECIAL PROCEDURES 33 BIT SUMMARY 34 HYDRAULICS SUMMARY 34 FORMATION INTEGRITY TEST PROCEDURE 35 PROPOSED COMPLETION SCHEMATIC 36 SURFACE USE PLAN FOR CLU STORAGE 2 37 31 Page Depth Time Curve I1 _ vo:li asea�ay _ M aletopad Ho,-.)do 2iy - SIJ asea�ay/�]N' _1 y 9a�dwo_, ,L tiny cf) aawl ,L lut::, '8 un. irtN N i -.. --•-- „$/5 u i iatua:, pue tny N(J ti U in rl , * sisape N - 4.- - _. • , 2s:1 „8/ t iji g n o ei 1 - inO GG _ 0 C O G O O O O N V ..0 co o N rl e-1 (i})yidsd poinsssy j 4IPage AREA MAP m .11 g l Anchorage II Tyonek,.r 3t • F ' Kenai Field, Cannery Loop Unit, gry NI, rrikiski Sterling Undef �' i Gas Pool Kenai _ _ Cooper Landing---.. tom. Seward r GENERAL RESERVOIR OVERVIEW _ i , ..... �, Art R,1,1 _ ,____ _ ,... AL, _. ...,.,5:.,4 „ ... 'rr 1 __ s , ,4:_. , 1,.. '''`, s'• 1 _ UNGSA•5 —r. 0,10,0161:37 t SA-1 ib 15 It 4. . 51 Page CINGSA CURRENT WELL PLANS C LIJ-3 PIIIIZ z OLIJ-1 1 )11.1 IIIIIIIIIIIIb 1 / - C LU-7 „. . ,C LU i 11Z7Z.diiiiie, z C LU- 1 1=MMEMML i 6 1 H .: CINGSA FACILITIES MAP ...,.,\ i , \ PROJECT OVERVIEW ,--7,'.i:,-.'`'.1'''';',., Pixot--;:t• • • / / \ EXISTING CONTOURS \s \\\,, .• „ 0 F`'- . . \,,`.• / / i, , ,..-- ,N\I 3 17 , • .1. ' I . Kligi• P. \ we '1•..._ .i. .'" (C"...L.\a • ; ,, SCALE •\•''Y•-• •• \, • .'04:40 • - • T \ ,/./...,-..o. :, , / . ,,s,.\ \ r . I / ,o• N , \ , ,, ' i 7 . ' \ \ . ct, \*,\ • , ..• Ii .\\ PROPOSED, . • . ,. \ ., : • FACILITY/ • , ..--"‘„ ' , •••. \\‘. , .. , PAD T3 X • , `s..' , ® \-7._ g 2 . . , • 0- 0 , . , ._-,_. .•,' . , ....,.. ,,,,\,•• \ -,,x,,,,,, ,..; .. N, •ks„..V \, ''— ......, 0 P27_,74 CC frOVY LOT X7.,9"MINTY __., 1 'AN 747,4 r------ /t.' ,,• \ '..•.s.. ,„ ,_, 2 -i•Ce (44,(,.....7 bli, \,...-'.. ,--= ....• . ,,,A% \ ,.,......,,,,,,,,, ...,..... . f .---,, • ',,,,,r.."-' ,.-.--•--.24-i.,','", -%.7.•„11111,. -, ..\- '49-A...-i_ - ___ St7i ! „, / ... ..,.. ,.'•.:, \ ,- ,‹. -74„_ v.,'. , \\•• 1.1,71..,„S!.c94 c.•:I aci---..,, ' , _.....,... 'I:' ..,...'J ‘ , ,,_ , •,6)0 --.... ., ----. ---:::„7---,, '•-- ----: ‘,.,:.-__ • -'., , &ruby he 77.i.F2 % ----...,,__ 1,t ' ' 1' N, _ a.......•••wro \ '{ • - -'NN ..., . IS:. '',ri...,........„4„......„......”. ........,.... STA C,AlISKA •••''''''' ED. 7 1Page SURVEYED LOCATION PLOT w ' .,\.. ,.."'`.. \', \ i , SECTION 4'9J P11,. sECTgN__ P‘ \ ++ • SECTONS T94 RI IA NOT TO SCALE / , - T-.... _ • ', s 4,2-- TRACT E j ,, KN 2105-1:. 5. CITY OF KENAt '` i J TRACT S / �Z -- 1• '. 1 ,• 1 KN 2005-t« 11 )U I', In ..__ 111L�,�p, STATE OF ALASKA i 1,'' +,�I\ ' • F f ,, CINGSA 1 + - 'P DRILL PAD t ,1 1 S v« ,11 to, \\ 4• • \ I . s1783' >` . Y__....•• FEL `. V I C3 +'` GN65A WELL! I \ NAD27 ASP ZONE '',• +, 1 ' CRCE`J/M6.3 i �� I LATITUDE sffar40,ur;3• • 6) LONGRUDE:-1S1`12•42.=1 ' . .l EiEV 32IS + + + 1 , „ . ' ' .. .. . .1., r 11'1' '+ •, , • t. , • .. ---:,.... ..... ... . i , t• ...„...... . . t\ t i ; . . , , \ , . ., : , . , . , , , . , . :, 1 r SURVEY CONTROL 1)BASIS OF GEODETIC CONTROL AM)NAD83 POSITION (EPOCH 2003)IS STATE OF ALASKA DEPARTIbENT OF TRANSPORTATION&PUBLIC FACILITIES SURVEY CONTROL AKSAS PROJECT NO 58703 BENCHMARK 801 ALASKA STATE PLANE COORDINATES(ASP I ZONE 4 ARE L N C =i I i N=2363484.742 E.1422055 815 2)BASIS OF VERTICAL CONTROL IS ADOT BM 001 LOCATED SCALE AT BRDGE ACCESS RD.BEAVER LOOP RD.INTERSECTION 1 15C ;_r_ K. ELEV.:4220 FT NAVD88 I i I + Cook InICI Natural Gas CINGSA WELL'13- -4-- a1011 S iORAGE P.O.BOX 190288 ANCHORAGE, AK 99519 AS-BUILT WELL SURFACE :wawa. we LOCATION DIAGRAM NAD 27 ailAarbdilft I. •o OM 4i6amwb.� '�nO1 SEC-9 T5N R11W r.rr0 INT 311042,11 MA Illor,M.= - .,1, e .,. , .11�m1 SEWARD MERIDIAN,ALASKA 3 8IE- 6F WELL PAD LAYOUT I l 1 \ \.,, \ Z � t4s•- - � i A_ _ "\\el 16 it, Facility Area t z -a ` \ \ — 1L `Dill/TIPo Shasks t cv AMMO IOW Steerage 1 Gt tied Lewes 4 7 '1611.1111.1' L Med ihrij. IIlJI1� LeViller+�'Z hat Launch Creek _ . .,t _`a'rT67 4ehnien Zone f118G11 7 t b a� {_t l^ o Y e in SLe Cementing CLU Storage S DeWatering Plant CD ty ce-ta n,ent N ID hirers , 6_ \\\ iiiir Drum Containment _ I I 1 )— 428' ` t I , A � I I tt 1 GENERAL WELL DATA • Well Name CLU Storage 4 Lease/License Surface Location Est. Spud Date 10/22/2011 Slot/Pad CINGSA Field API No. RT Elev. above 53.5' Borough Kenai Well Class Storage Ground level 33' State / Alaska Rig Contractor Nabors Alaska Perm. Datum RT Total MD 8,832' Rig Name Nabors 105AC Total TVD 5,154' Comments: none 91 Page GEOLOGIC PROGRAM SUMMARY The proposed gas storage reservoir interval is the Cannery Loop-Sterling C Gas Pool. The Sterling C Gas Pool is vertically defined as the underground formations comprising the Cl and C2 sands, bounded by the coal at the base of the B5 sand formation (top)and the top of the Upper Beluga formation (base). The Sterling C Pool is vertically defined in the"Pool Type Log" Cannery Loop Unit(CLU)-8 well (API #50-133-20534-00) as the interval between the depths of 6690 feet measured depth (MD) (4871 feet true vertical depth subsea [TVDSS]) and 6945 feet MD (5101 feet TVDSS). The gross reservoir interval thickness averages -200 feet across the pool area, and average net sand thickness is -95 feet. The original gas accumulation is comprised of fluvial channel sandstones with interbedded silty sands and shales folded in a structural 4-way dip closure and charged by biogenic methane gas. MD- RT TVD-RT Pore Pore Formation (ft) (ft) Pressure Pressure Lithology Possible Fluid (psi) (ppg) Sterling A 5,900 4,125 1,739 8.33 silty sand gas/water Sterling B 6,277 4,330 1833 8.33 silty sand gas/water Sterling C-1 7,655 4,934 2204 8.56 sand gas Sterling C-2 8,125 5,022 2223 8.56 sand gas Comments: Sterling A& B are transient sands above the Sterling C. They have never been tested in the Cannery Loop Field and are included only as a potential source of gas. The depths are estimated and not projections. Sterling A& B sand pore pressures are estimated at fresh water gradient. Surface Location Coordinates From Lease/Block Lines 570' FNL 1763 FEL SEC. 9 T5N R11W Latitude 60°32'40.4823" N Longitude 151° 12'42.2329" W ASP Zone 4 NAD 27 Grid N 2392982.6 ASP Zone 4 NAD 27 Grid E 281845.28 Targets Name _ MD(ft) TVD(ft)_ Local N(ft) Local E(ft) Grid East(US ft) Grid North(US ft) Latitude Longitude P4 Preferred Tgt Heel Rvsd 28-Sep-11 7655.26 4934.17 -1714.55 -4807.38 1417027.50 2391119.25 60°32'21.533"N 151°1426.359"W P4 Preferred Tgt Toe 14-May-11 8831.96 5153.94 -1892.09 -5949.65 1415882.20 2390962.82 60'32'19.779"N 151°14'49.192"W Targets are in NAD 27 Comments: none 10IPage SUMMARY OF POTENTIAL DRILLING HAZARDS Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) has the authority and is responsible for shutting the well in as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is the Sterling C sand packages and no oil sands have been encountered or are expected to be encountered. No H 2S has been encountered or is anticipated. Gas sands may be encountered from approximately 6,800' MD (4,125' TVD} to total depth of the well. These sands will run from highly depleted to possibly normal gradient pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling 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. No abnormal gradients are expected. The Sterling C sand is expected to be depleted to 380 psia or approximately 1.5 ppg EMW. There is potential for isolated sand packages within the Sterling C to be at original pressure. Original reservoir pressure was measured at 2206 psi at a datum depth of 7853' MD (4966' TVD) in CLU-6. This equates to 2203 psi at the top of the Sterling C sand at 7,655'MD (4,934'TVD). As such, the interval will be drilled with a suitable mud weight to control any normal pressures. FORMATION EVALUATION SUMMARY Interval LWD Wireline Logs Mud Logs Basic with Gas Surface Chromatography 0' to 2 MD GR None Analysis(GCA), PVT, r' , y ri'Vf sample collection (30' 2 � j. samples). In rmediate Basic with GCA, PVT, 2to 7,680' MD GR/Res 9 5/8" CBL/GR/CCL sample collection )74 (30' samples). Production Triple Combo Basic with GCA, PVT, 7,680' to 8,832' MD GR/Res/Neutron 7" CBL/GR/CCL sample collection (10' samples). Coring Requirements: None Comments: None 11IPage DRILLING PROGRAM SUMMARY CONDUCTOR: 1. Drive 20" conductor to +/-100 ft. RKB_ Install FMC 20" 2000# landing ring 2. Move in and rig up rotary drilling rig. 3. Nipple up 21 1/4", 3M diverter with x/o, 16"diverter valve, and 16" diverter line. 4. Function test diverter and diverter valve. rravv\ SURFACE: �Mt,5 =,1�`1Sk 1. Directionally Drill a 16" hole to MD (??,409'TVD) per the directional plan. 2. RIH with 13 3/8" casing, centralized according to program and hang off in the spiders. Rig up false table and make up stab-in sub and centralizer on 5" drill pipe. RIH with inner string and latch into stab-in float collar. 3. Cement 13 3/8"casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. POH with inner string. 4. Monitor well until cement sets. Lift riser and cut off 13 3/8"casing. ND diverter. Dress 20"conductor. 5. Install and test 13 3/8"slip lock connection X 13 5/8" 5M flanged FMC Multi-bowl wellhead. 6. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250psi/2500 psi 7. Set wear bushing. 8. Make up 12 1/4" directional BHA and RIH to shoe. Test surface casing to 2,DOD psi. INTERMEDIATE: 1. Drill out float equipment and make 20' of new hole. CBU. 2. Test shoe to leak off. Estimated leak off is 15.0 ppg EMW. 3. Directional drilll2 1/4" hole to 7,680'MD (4,939'TVD)as per directional program. Exact depth will be determined by Geologist call on the bottom of the B5 coal plus rat hole. 4. At TD circulate hole clean. Make wiper trip. CBU and POH. 5. Set test plug and change from Variable Rams to 9-5/8" casing rams. Test casing rams to 250/2500. Run and cement 9 5/8" casing in two stages. Land hanger in FMC multi-bowl wellhead. 6. Back out landing joint. Set Test Plug and change out 9-5/8" casing rams to variable pipe rams and test pipe rams to 250/2,500 psi. •- 7. Set wear bushing. Test casing to 2 000 psi. ,)4Wc 5, -I?ii ,�1 PRODUCTION: 1. Pick up 8 1/2" mill tooth bit and BHA. Drill out DV and float equipment and 20' of new formation. CBU. 2. Perform FIT to leak-off expected at 13.0 ppg EMW. POH. 3. Rig up and Run CBL. 4. RIH with directional drilling BHA. 5. Directionally drill 8 1/2" hole to 8,832' MD (5,154'TVD) per the directional program. Note: exact TD will be determined while drilling by the top of Sterling C2 pick in order to stay minimum of 15'vertically above the Beluga Sand formation. 6. At TD circulate hole clean. Make wiper trip. CBU. POH. 7. Set Test Plug, change out pipe rams to 7" rams. Test to 250 psi/2500 psi. 8. Pick up 7" liner assembly(200' Liner Lap)and RIH on 5"drillpipe. Circulate and condition hole. Cement liner according to program. Set hanger and liner packer. Test liner lap to 1500 psi. Circulate casing and drill pipe clean 9. POH laying down drill pipe. 10. Pull wear bushing. Pick up 7" seal assembly and RIH on 7"tubing. Stab into Liner hanger polished bore receptacle. Pressure up back side to 1000 psi confirming stab in. 11. Pick up 7" and space out 7" mandrel tubing hanger. Circulate well to 8.7 ppg KCL brine packer fluid. Observe well dead. Stab into polished bore receptacle. Land and test hanger seals. Test Annulus to 1,500 psi. Test tubing to 3,000 psi. Back out landing jt. Set BPV. 12. ND BOPs. 13. NU ADAPTER ASSY, A-4, 13 5/8-5K STDD BTM X 7 1/16-5K STDD TOP and 7" 5M tree. Test to 5,000 psi. 14. Rig down and move out drilling rig. Comment: • Drill all hole sections with 5" drill pipe • Perforating will be done after rig release with coil. 12IPage CASING PROGRAM MD (ft) 1 Connection API Ratings Casing Weight Hole Size Size GradeMakeu 1 I (lb/ft) O.D. p (inches) Burst i Collapse Tension (in) Top Bottom f Type Torque i y a I (inches) (ft lbs) 1 (psi) G (psi) (kips) I I 13 3/8" Surface 2,713' 68 J-55 BTC 14.375 N/A • 16 3,450 1,950 1,069 9 5/8" Surface 7,680' 40 L-80 BTC 10.625 N/A • 12 1/4 5,750 3,090 916 7"L 7,480' 8,832' 26 L-80 VAM Top 7.565 11,950 8 1/2 7,240 5,410 604 Comments: *The make-up of the buttress connection will be to the proper mark. Vam Top will be torque turned. Make up and Bakerlok all float equipment to joints prior to running in the hole CASING DESIGN Casing Shoe Safety Factors Casing Setting Mud Wt Maximum Size Weight Grade Depth When Surface (In) (Ib/ft) (TVD ft) Set Pressure (Ib/gal) (psi) Frc. Formation Grad. Pressure Burst Collapse Tension (lb/Gal) (lb/gal) 13 3/8" 68 J-55 2,409 9.4 15 8.5 1472 2.34 1.91 6.38 9 5/8" 40 L-80 4,939 9.8 13 1.0 -8.5 1764 3.26 2.47 2.62 7"L 26 L-80 5,154 9.8 13 1.0 -8.5 1184 6.11 3.07 12.64 Comments: Production zone is expected to be depleted with potential virgin pressure cells. MAXIMUM ANTICIPATED SURFACE PRESSURE Casing Size Setting Depth MAWP* MASP** (in) (TVD) (psi) (psi) 13 3/8 2,409 2,626 1,701 9 5/8 4,939 2,469 1,763 7 5,154 3,567 1,185 *MAWP = Maximum Allowable Working pressure (80% Burst)**MASP = Maximum Anticipated Surface Pressure 13 I - i WELL CONTROL AND CASING DESIGN CALCULATIONS Surface Casing=13 3/8'"' (2,713' MD /2,409' TVD) Collapse 9.4 ppg mud wt at setting depth- evacuated = 9.4 ppg x .052 x 2,409' = 1,178 psi Safety Factor = 1,950 psi / 1,178 psi = 1.66 Burst @ Surface a) Frac Pressure @ Csg Shoe = (15.0 ppg + 0.5 ppg) X .052 X 2,409' - (.1 psi/ft x 2,409') = 1942 psi - 241 psi = 1,701 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (2,204* psi) - (0.1 psi/ft X 4939) = 2,204 psi -494 psi = 1,710 psi * Assumes 9 5/8" TDs in non-depleted formation. Use lesser of a or b = 1,701 psi Safety Factor = 3,450 / 1,701 = 2.03 Tension no buoyancy, hung in air = 2,713' x68 =184,484# Safety Factor = 1,069,000/184,484 = 5.79 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MASCP = (.8 x 3,450 psi- (9.4 - 8.33) x .052 x 2,409') MASCP = 2,626 psi 1411 ; e Intermediate casing: 9 5/8" (7,680'MD/4,939' TVD) Collapse 9.8 ppg outside, 1/2 filled inside = .5 x 9.8 ppg x .052 x 4,939' = 1,258 psi Safety Factor = 3,090 psi / 1,258 psi = 2.46 Burst (a, Surface a) Frac Pressure @ Csg Shoe = (13.0 ppg + 0.5 ppg) X .052 X 4,939' - (.1 psi/ft x 4,939') = 3,467 psi - 494 psi = 2973 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (8.5 ppg X .052 X 5,154') - (0.1 psi/ft X 5,154') = (2,278 psi) - (515 psi) = 1,763 psi Assumption under b) is made to demonstrate worst case surface pressure if the reservoir had not been depleted. Current projected depletion pressure of 380 psi at TD results in a negligible surface pressure for burst calculations. Use lesser of a or b = 1,763 psi Safety Factor = 5,750 / 1,763 = 3.26 Tension Hung in air = 7,680' x 40# =307,200# Safety Factor = 916,000/307,200 = 2.98 Maximum Allowable Surface Casing Pressure This assumes the 9 5/8" penetrates the Sterling C in a depleted area. MASCP = (0.8 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MASCP = (.8 x 5,750 psi- (9.8 - 1.5) x .052 x 4,939') MASCP = 2,469 psi 15 IP ; e Production Liner: 7" (7,480'MD/5154' TVD) Collapse 1/2 x 9.8 ppg x .052 x 5,154' = 1,313 psi or Formation Pressure- gas gradient = (8.5 ppg X .052 X 5,154') -(0.1 psi/ft X 5,154') = 2,278 psi - 515 psi = 1,763 psi Choose worst case = 1,763 psi Safety Factor = 5,410 psi /1,763 psi = 3.07 Burst @ Surface a) Frac Pressure @ Csg Shoe = (13.0 ppg + 0.5 ppg)X .052 X 5,154' -(.1 psi/ft x 5,154') = 3,618 psi - 515 psi = 3,103 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (380 psi)- (0.1 psi/ft X 5,154') = 380 psi - 516 psi = Surface pressure is negligible in this calculation due to reservoir depletion. c) Injection to Maximum allowable reservoir pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (1700 psi) - ( 0.1 psi.ft x 5154) = 1700 psi - 515 psi = 1185 psi Use C as more realistic condition, rather than lesser of a) or b) or c) = 1,185 psi Safety Factor = 7,240/ 1,185 = 6.11 Tension Hung in air = 1,352' x 26# = 35,152# Safety Factor = 604,000/35,152 = 17.18 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MASCP = (.8 x 7,240 psi-(9.8 - 1.5) x .052 x 5,154') MASCP = 3,567 psi Comments 16IPage BOPE PROGRAM Casing Test Casing Size MASCP MASP Test Pressure Casing (in) (Psi) (per) Test Pressure Fluid Density BOPS Size&Rating LowlHigh (Psi) (Iblgal) (Psi) (1)13-5/8"5M annular 250/2,500 (1)13-5/8"5M pipe ram Surface 13 3/8 2,626 1,701 2,000 9 (1)13 5/8"5M blind ram (1)13-5/8"5M drilling spool with 4 1/16"5M outlets �� (1)13-5/8"5M annular 250/2,500 D (1)135/8"5M pipe ram Intermediate 9 5/8 2,340 1,763 2, 9.5 (1)13 5/8"5M blind ram (1)135/8"5M drilling spool with 4 1/16"5M outlets ! (1)13-5/8"5M annular 250/2,500 (1)13-5/8"5M pipe Production Liner 7 3,434 1,185 3,000 9.4 (1)135/8"5M blindram ram (1)13-5/8"5M drilling spool with 4-1/16"5M outlets MASCP- Maximum Allowable Surface Pressure(80% Burst) MASP -Maximum Anticipated Surface Pressure BOPE DIAGRAMS Diverter System I , f 1.1 r•- 1 1 - 1 1 V 21 1/4— DIVERTER SPOOL FABRI-VALVE 16" KNIFE VALVE ANSI 300 FLANGES 1 � i 17IPage CHOKE MANIFOLD TO ELEVATION LINFLARE LINE VIEW "B" PRESSURE Q GUAGE 4--)1,..„„,.... 6) © /bilk da ILA. Nom .. `-- , , � It.-ffq CD 415 lar da it 0 L as ala l 7 1 4 ""`" i 0 W. a 1 WIC! �� ELEVATION .. VIEW NBN 9 , x- cif) 1 ti" 1. A rr1 FROM ..- al WV VFW MATERIAL LIST WELLHEAD 18 , It "ELEVATION A" ITEM I I D NO I DESCRIPTION +, � VIEW "A" 1 AS0611161 3-1'16" 10.0008 CNV "FC'G. 2 N1188 3-1;16"x3-1/16'x3-1'16"x3-1 - 2-1'16'10,000#z 23"OAL STU .S) 1 1 3 F3092AC 3.1116" 10,000# BLIND FLAN 31'16 x t0A00# VALVEWOI _ Jaa sA - 4 27430 VW FC GATE VALVE ...... .......... t 1 9 41_J S I 5 I 28782 3-1!16 x 10,000#VALVEWOI 'VW-FC'GATE VALVE 9 •�� 6 N1188 31,16. 10,000#STUDDED S 7 74192A 3-1116' 10,000#BLIND FLAN - - - 8 AS0703005 3-1!16' 10,000#CNV'FC G. l 3 1116'x 10,000#VALVEWOI-_---.._. {�:! 9 27430 'VW-FC GATE VALVE PLAN VIEW 10 74005A 4'OAL FLANGED SPACER SPOOL 11 N1105 31/16' 10,000#STUDDED C 12 - F3092AC 3-1'16' 10,000# BLIND FLAN 13x F3092AC 3-116" 10.000# BLIND FLAN NABORS ALASKA DRILLING RIG 105E to AS 703001 3-1/16 10,000# CNV"FC G, 15 F3268AE 3-116" 10,000# x 18,50°OAI P10 000# CHOKE MANIFOLD CONFIGURATION 1003900-2- FLANGED SPACER SPOOL 16 3-1 f1s 100000 CGRTEC"NH-2 1178 CHOKE W.2'MAX ORIFACE S + 17 I F3288AE 3-1'16' 10.000#x 3.187"OAI DOUBLE STUDDED SPACER 18 _AS0703008 : 3.1/18' 10,000# CNV'FC a 19 AS0703009 13.1/16. 10,000#CNV'FC CL 20 AS0703007 3.1;16' 10,000#CNV°FC'G. GASBUSTER 21 AS0703006 3-1.'16' 10,000#CNV"FC°G, 22 F3268AE 3-1;16' 10,0001'x 2-9'16" 10! DOUBLE STUDDED ADAPTEF jv:le'10.000•EEC'S'SYI,ICO 5'V.E 23 9384 CHOKE x;SS 10 ,,e, DSCS OTE a(:. ..... l... . INCLUDED) 24 74005A 3-1/18' 10,0001'x 2.9/18'10,C FLANGED ADAPTER SPOOL ® 25 1 AS0703003 3-1/16" 10,000#CNV"FC G, II 26 , N1105 3-1;;16 10,000# STUDDED C 27 AS0703010 - 3-1/16" 10,000# CNV"FC'0, ® =i' 28 F3092AC 3-1/16 10,000# BLIND FLAN Q `` 29 y A50703004 3-t/16' 10,000# CNV'FC _' r_..-- ---1 3-1'16" 10.000# z 32.067 Oi 33 rT1- 74005A FLANGED SPACER SPOOL MEN 2-1/16' x 10000# VALVEWOI • �G 31 30830 "VW-FC"_GATE VALVE _-_- IIII4 )ilI 432 51209 •F:M FEMALE THREAD D(TAPPWECOir FEMMETHREAD(WE W2x TR I �_- _ F10,000# x 14"OAL • FLANGED SPACER SPOOL. ------- - a- 34 O 3-1/18' 10,000# BLIND FLAN 40 e , •/ L 35 - 3.1/18. 10,000# STUDDED 3 !. r71 20 p.- mom 1 CID 11 1 ELEVATION VIEW "A" 18IPage BOP STACK Shaffer 13 5/8" 5M Annular / Shaffer 13 5/8" 5M Double Ram BOP Ip :I —— _L i- -Li B = LLLJ�_ _ _ .I Pipe Rams ri _I - - -�1�1-- - - ril — 's �I —L-- -- EI i n Jnnn_ r- -r . Blind Rams 21/16" Kill Line -� �4 i: : ! 1 1�® ® e 74; ° �1/�aji c �' - Line 3 1/16" 3 1/16" 4 1/16" 10M 10M Check 10M 4 1/16" HCR 3 1/16" 10M 10M HCR ar UPPER UNIHEAD —on.. ASSY, UHM-ET = I 1, 1 = ` 13 5/8-3K STDD BTM 3-74 „' X 13 5/8-5K FLG TOP • .. . i`-2 1/16-5K M120 PLUS GV (P150532) = OM _ re,-•� / / / 133/8" OD CSG CASING HEAD ASSY, &22-EG �g 5/8" OD CSG 13 3/8 SLIPLOCK X 13 5/8-3K P183999 7" OD CSG Cook Inlet Natural Gas Storage Alaska ALASKA 133/8X95/8X 7 19IPage Blowout Preventers The blowout preventer stack is 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 is rated 3-1/8" x 10,000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also induded 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. Casing Test Pressures Casing test pressures are based on the most severe conditions expected either while drilling or during the production life of the well. Minimum casing test pressure is 50%of the 5M BOP rating which is 2,500 psi for all casings in this well per AOGCC 20 AAC 25.030(e)however, a 3,000#stack is all that is required to drill this well. A variance is requested to accept a minimum casing test pressure of 50%of 3,000#or 1,500 psi. WELLHEAD EQUIPMENT SUMMARY Component Description Hanger Type CASING HEAD ASSY, C-22-EG, 13 3/8 SLIP-LOCK BTM CASING MANDREL HANGER, UH-A, Casing Head PREP X 13 5/8-3K FLG TOP W/TWO 2 LPO, PREP F/ FLUTED, BODY, F/ 13.505 BOWL, 9.625 API UPPER UNIHEAD ASSY, UHM-ET, 13 5/8-3K STDD BTM TUBING HANGER ASSY, TC-1A-ENS, 13 5/8 X 13 5/8-5K FLG TOP, W/TWO 2 1/16-5K STDD OUT, FLG, 7 VAM TOP (29 LB/FT)BTM & TOP, Tubing Head 13.505 THRU-BORE, A 320 GR L7, NON-EXP BLTG, EE- ISA BPVT, 8.985 EN, W/2 CONT SCSSV 0,5, P-U, PSL 2, MONOGRAMMED, W/ LOWER AND PORT, COMP PACKOFF BTM, DD-NL, P-U, UPPER LDS, PSL 2 ADAPTER ASSY, A-4, 13 5/8-5K STDD BTM X 7 1/16-5K Adapter Flange STDD TOP, L7, F/8.985 EN, EE, K-U, PSL 2, MONOGRAMMED Comments: Hanger is prepped for two control line penetrations. 201Page 45 ici -o W m W d a) a) F CO I.LU bA E o w eo as a o in O c aa)) 01 p 0_ U w Y w m F en F- _ r-I v (0 m a) O O N O 0) N N O O M O Lei (-6 t E. 0 0' N M O N N coa) V In In (0 d _ et io o o o co r.. o co 0 O O co co N 0 0 ` •- O O O O e- 0 0 7 L. I-- ca (Y g O O O O co 0 0 o O O O O N- 0 O P : O O M O N 0 0 .7 L m 0 O r 0 0 0 0 0 0 0 _j J Fr 0 0 0 0 0 0 0 G O O r) O c') 0 0 eq Q) CC0 NTr N 000 O N c0CO 01) C 01 CO N N N O 0 N O to M M ICO 01 N .-1 N N .-I 0 N M M m M m 0 N N N N N a) O 00 O M .-I .-1 O t 00 N N m00 00 M N 01 .-1 E M .-1 M 01 O U1 to M c0 r\ N N 0 00 0 ^ 0 CO 00 o CO CO 00 N N N rN -0 N N N N N N N 0 w C .0 M O 111 M N O N- N 0) 0) N 0) CO +- 1▪0. o ., V 4 O 0) 0) N �c4 C6 N• Z N N N O 0 • u N N — 01 N N N N N N N a)U C CO W 't o CO 1 N fA O al 0' W ' c00 c• 00 co L0 N O W E C .p 0) 00 CO 0 N 0 0 00 p U '� N N N n r` O 9- T. 0 V 7 R E a) QY .- O O 0 M co. coam (00 co • W O O W 0 CO CO 0 C `,) O 1O N LO o N 0O CD 10 N 0) p t M 1.0 M 0 O. t' �E 0 O 6 O 7 O C' =.. gg 0 • z 0 0 0uMj 1, r- a°'' O E C I as2 r- el (00 CO CO 0T) U 0 D a � � coTrCOma) 1- a) Z N V V 7 1n 4- 2 o 2 g 9 N 7 v v v v E 0 > E �" - V '7 O O O 2 w/ C N N N N N N N N 1i U Q ) N a. E C c0 A O 7 Q4 w 0 • O O co M N N N U 4 O OTs CO C .�. C) 6 n 0 Oc o o - U V 0, 0 0 O N CON CCVD 0 N w W o u O• p N N Li 0 M E co 0 f 12 > POTENTIAL WELL INTERFERENCE: Clearance elipse of Well Distance @° MD uncertainty (ft) (ft) separation (ft) CLU#6 453 7796 91 • CLU#8 672 8452 281 CLU Storage 3 49.41 0 36 CLU Storage 4 100.1 0 37 Comments: No serious interference exists. See attached directional plan and anti-collision analysis for more details. DIRECTIONAL SURVEYING SUMMARY Interval MWD Magnetic Gyro Comments Survey Multi-shot Multi-shot 0 -2,713' X 2,713' - 7,680' X 7,680' - 8,83T X Comments: 22IPage W ao fa a m N g ror il3;11 g ill ' C; 1 1 I W \ i ts 1 4 u •per(• �� T W ib� 1 ; \ 4. I- . .y F f1f1 € cJ N Q. fJ n _/�,i 1- Q iJJ 4 V1 i7S U U 1 �° Q1gat - c € i- 2 i) Q e g -g (f 3 1 ; 5 ! g Q a c �' Cll ! .A ! A o C I 75 � 1AU 1— L J Z C « YY 111 Q- • f� 2Sa o s - 1- t ui ,^ 1 0 Fy 1 Z Z c�c3 � � � 2 � 1x 4 W - 9 8 j ' J Z 1 1-P. " t i 5 E \I $ . 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M f� A) AAA A44 Q ` -I, K f f I 1N .�-1 C ti, 1d i ; 1 i 1 t•1, 1, G • N N Ii --ii. # x k s dd iDOdd dddddONd , d cc C O ,.-' i 1 . 1., w a 1 , 111111 4 _ CC V � N l p p M gNl p • 7.. 1. 7e e p / ;to,� dddddddddd iOdddd, Z l IX 8A7 / / V V!VUi� ii :t « I Lu Ald dddd dPidd ddd V H✓ L a g &i t W H . w sl, wwGI 'Z 41 N 'j N 11 N N: g g W 'K * t PLANNED WELL SUMMARY SHEET ,,,oe hale%eters!GOI grckii STORAQE • , cA(C001 iriet% S35 St)ra?e A125113 BAKE .411en Lamina MIMI Isom 1••••••••• Aato (amity 4.•••Lie 41144114 ••••• • •L- HVGIIES .„.., .........,Ng "A earwax,MAW Pill.. 1 4.V . 1 301 11113 -a yairbos dom.•e es•,v 1 t-'ia. ^ :RTE, ".••••Leval slipeo es •Morer•cm:L%or.,•'-'5,. 4 T Et 10SE i Fov E t k.,War too Laval 63 SS toe ... moo :As...ammi tn.411.o.1 len *j k4 bItt.14:t U Iona Air,ZA•oloa..+1••••I 44•4•4-ula Lc.: t =4,•?",P44••••• t t _ - •• - • - , = • . t : S. .- - -- ---,. - - ...---- . ._ .. " - - - • Y-4 ,-.. •.: V...1 4f*IN Skit 54.1 alt _,.. . r" '..'." Vs - Sea Lavti '•'." Survey Program '',1416C 11' ...• .. :71:SC - , - 4. v ..-All - -.• 1SW X - ., - ... .,.1irdi •4.1e: 9831 5* _ _ Well Profile Data Davi L44_4 = ' VS ift; Eat RTF S..! 'Y' :I XX 24;40 . •JA CX 4•OP - .7,Xs:. :4C,40 , 0-4- C X - .44 :444 '4ê6: 6 - ?jJ. --.436 3 OG 9•0 2":i - '' .16.4 2M€ 4:"c.i.P" .'r :* -- ,;••a* - X 43S3 64 74= = -•'' • "r9 236 xi le* . - - - .— ..._- • - , S10091 :- - -,..- - - -- - . _-- 5125 17 39E Ts 23e .- ." - ,- .- - . 4L-'43 25 735g-E•t5 ... .. - - - ,IC" ^ CA 4 •.. • st".1.--iv, 111•4•z.ealro -•-.44+a ,,, - •.”.. ..masa.I. _ CA.-1S"?If-- Van 14•4 tr.'.44 Hole and Casing SeCbOrIS viss- 5,- taw rfw 5-3.- liar cro r?ft Nine IC le 4,e- • -IMAM it 'nor .... 'Yr e r.lo . Doi t•It .341b,h•• ea*f A Voiescr• 30s•Callhalor OW - Y C et :x •T ' T :x ' ( DM C.-L.leceopt: 'I,r'in-soft eveagete, 1 X :- - —:se :x :4",r.r; -r -IC Ai, to 4'01 IC .•-•-5.•_'c nlarr•Dos. ." nr. - -gle.7:-. :X •114114 "r 40.14 CA L%nen.- - - -- •— ." r5; ••'.7.-•" !•-:4 • . '.•. - .: c ,....44. -. -- 30IPage DRILLING FLUID PROGRAM SUMMARY Casing Hole Depth TVD Mud I Mud Weight Additives Size Size (MD) (TVD) System (ppg) (in) (in) (ft) (ft) Gel, Gelex, Soda Ash,Caustic, � C o Barite,Polypac Supreme UL 13.375" 16" 2,1' GEL SPUD 8.8-9.4 X .2.114.. "" /.) 9`y Flo-Vis,PolyPac UL,KCI, SafeCarb(F/M) ,Barite,LOTORQ Caustic,Conqor 404, 9.625" 12.25" 7,680 4,939 3%KCL FLOPRO NT Sodium Meta Bisulfate 9.2—9.8 Flo-Vis,PolyPac UL,KCI, SafeCarb(F/M) Barite,LOTORQ, Caustic,Conqor 404, 7" 8.5" 8,832' 5,154' 3%KCL FLOPRO NT Sodium Meta Bisulfate 9.4—9.8 Liner Comments: See mud prognosis for details. The mud system from the intermediate section may be utilized in the production hole section Instead of building a new mud for that section. Sized CaCO3 (SafeCarb) will be used to control seepage losses and aid in wellbore strengthening. DRILLING FLUID SPECIFICATIONS Plastic Yield API Funnel Depth ND Mud Wt. Viscosity Point Fluid Loss Viscosity LGS (ft) (ppg) (cp) (Ib/100ft2) (ml/30min) (sec/qt.) pH 0' - 2,409' 8.8 -9.4 15 - 24 >30 <18 70 - 150 8.0 - 9.0 < 6 2,409' - 4,939' 9.2 -9.8 10 - 16 12 - 18 5 - 7 30 - 50 9 - 9.5 < 6 4,939' - 5,154' 9.4- 9.8 10 - 16 12 - 18 4 - 6 40 - 50 9-9.5 < 6 Comments: None 31IPage SOLIDS CONTROL EQUIPMENT Item Equipment Specifications (quantity, design type, model, flow capacity, etc) Shakers 2 x King Cobra , Brandt Linear Motion Desander na Desilter na Mud Cleaner na SWACO model 518, 75-140 gpm at Centrifuge 2,500 to 3,300 rpm, 180-250 gpm at 1,900 rpm. Comments: Additional equipment on site will be a Swaco Model 518 centrifuge and tank package to de-water discarded drilling fluids. The water will be re-used to limit disposal volumes and the solids processed, tested and disposed of in the Kenai Borough Landfill. CEMENT PROGRAM SUMMARY Casing Depth Gauge Top of cement Ann Vol WOC Open Size Hole To TOC Time Hole (in) y ' Size (bbls) (hrs) Excess MD /747 TVD,_ (in) MD TVD (%) (ft) (ft)J (ft) (ft) \k5 4511\4 13 3/8 ,.2>? 16 0 0 2 5 75 9 5/8 7680' 4938' 12 1/4 0 0 ,�4 24 10 7" L 8832 5,154 8 1/2 7,280 4,830 35 8 25 Casing TC1C Mix Water Compressive Size Slurp, Cement Density 0 ty Yield SI urry MD WL FW Strength (psi) (in) Description (lbigal) (sxs) (cu.ftsx) (bbls) tf) (cc) (2,4) Qty _ tga4'sx; -'�E 6 hr 2 nr 13319 lead Type HI 12.0 7213 2.41 312 0 14.51 Fresh NA 0 100 350 tail Type I/II 15.4 277 1.22 60 2.346 6.5 Fresh 252 0 250 2.100 lead Type HI 12.0 ,55;2.41 218 3 500 14.51 Fresh NA 0 100 350 9 52 tail FIexSTONE 14.0 196 1.29 45 7.045 4 1 Fresh 8 0 150 817 2nd Type Ili 12 0 490 2.41 210 0 14 51 Fresh NA 0 100 350 stage 7 FIexSTONE 14 0 226 . 1.29 62 7.280 4.1 Fresh 8 0 160 817 9 5/8"cementing will be performed in two stages using a hydraulically actuated stage collar at approximately 3,500' MD. Comments: See cement prognosis for details and spacer specifications. 32IPage REGULATORY WAIVERS AND SPECIAL PROCEDURES 1) AOGCC Regulation 20 ACC 25.035 (e) (1) (A) for an operation with a maximum potential surface pressure of 3,000 psi or less, BOPE must have at least three preventers, including The Nabors 105ac rig has a 5,000 psi BOP stack and 10,000 psi choke manifold as standard equipment. The maximum potential surface pressure is less than 3,000 psi and CINGSA requests that the AOGCC accept CINGSA's determination under this regulation that only three preventers are required. ✓ 7)„1 2) AOGCC 20 AAC 25.412 (b) The packer must be placed within 200 feet measured depth above the top of the perforations, unless the commission approves a different placement depth as the commission considers appropriate given the thickness and depth of the confining zone. /4)71,1�i CINGSA requests to increase the packer measured depth distance to 400'for this well. The intermediate�.�' casing string will be cemented into the top of the Sterling C, however, the expected top perforations for this well may be up to a hundred feet below the 9 5/8" shoe. The exact location will not be known until the logs are processed. The liner lap is designed to be 200'to provide optimal liner lap isolation with cement. The packer is a BakerHughes ZXP liner top packer. CINGSA believes the primary isolation of the reservoir is the 500'+ of high compressive strength premium cement used for the tail slurry of the 9 5/8" cement job. Secondary protection is the cemented 7" liner with calculated top of cement above the liner top. Tertiary protection is then provided by the liner top packer. 3) AOGCC 20 AAC 35(e)(1)(A)(i) A well must be equipped with BOPE meeting the requirements of this subsection The following provisions apply to BOPE and other well control equipment: (1) in rotary drilling rig operations, (A) for an operation with a maximum potential surface pressure of 3,000 psi or less, BOPE must have at least three preventers, including (i) one equipped with pipe rams that fit the size of drill pipe, tubing, or casing being used, except that pipe rants need not be size,�to bottom-hole assemblies (BHAs) and drill collars; + `r:1 tikG��V C�� � � I\c. XX, �� SMC Cs. CINGSA is requesting variance to AOGCC 20 AAC 35(e)(1)(A)(i) to treat the 7" liner as a BHA and not have 7" pipe rams installed and tested for this operation. As a condition of this variance, we will have a 7"Vam Top pin (tubing thread) x 4 1/2" IF crossover made up to a stand of drill pipe and stood back in the derrick. Should an event occur that requires us to close the well in, we will have a choice to shut in with the bag type preventer or be able to quickly stab and make up the crossover and lower the liner below the rotary and engage the 5" pipe rams. This would be same operations that would be needed for the BHA components or drill collars. 4) 20 AAC 25.035. (10) the BOPE must be tested as follows: (A)when installed, repaired, or changed on a development or service well and at time intervals not to exceed each 14 days thereafter, BOPE, including kelly valves, emergency valves, and choke manifolds, must be function pressure-tested to the required working pressure specified in the approved Permit to Drill, using a non-compressible fluid, except that an annular type preventer need not be tested to more than 50 percent of its rated working pressure; however, the commission will require that the BOPE be function pressure-tested weekly, if the commission determines that a weekly BOPE pressure test interval is indicated by a particular drilling rig's BOPE performance; CINGSA requests to perform BOPE tests at intervals not to exceed 14 days in accordance with the following regulation: Nabors Drilling Rig 105 AC has drilled two wells since coming off stack and performed all required BOPE tests in accordance with the AOGCC regulations as witnessed by the AOGCC inspectors. This request is to accept CINGSA/Nabors Rig 105 AC operations as proven in regard to BOPE requirements and take them off of 7 day testing cycles. \‘: c_Ls, � �' / Y f/ 33 I Page BIT SUMMARY Interval MD Size Type Manufacturer Model No. IADC Recommended Estimated WOB - RPM ROP -Ft/Hr 0 -2713' 16" ST HCC VM-1 115 55 klbs-250 120 2713' -7680' 12 1/4" PDC HCC QD505X M223 38 klbs - 175 100 7680' -8832' 8 1/2" PDC HCC QD505X M223 25 klbs - 175 75 Comments: See bit prognosis for additional Information. HYDRAULICS SUMMARY Rig mud pumps available are shown below. Max Displacement Qty Make Model Liner Stroke Press@ at 100% Max Rate Hole Sections (in) (in) 90%WP efficiency (spm/gpm Used (psi) (gal/strk) 6 9 3232 3.3 130/430 Surface Gardner 2 PZ9 1000 5.5 9 3847 2.78 130/361 Intermediate Denver 5.5 9 3847 2.78 130/362 Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. Pum De th MD Hole p Standpipe Minimum ECD Nozzle p Size Rate Pressure AV Size Remarks (ft) (In) (gpm (psi) (fpm) (32nds) (32nds) 0 -2713' 16 -18- 16 650 2,000 70 +0.2 18-18-0 2713'-7680' 12.25 650 2,000 130 +0.3 5 x 13 7680' -8832' 8.5 450 2,500 233 +0.6 5 x 15 Comments: See separate hydraulics calculations. Annular velocities in the 16",12 1/4", and 8 1/2" holes were calculated using 5" drill pipe. 5" drill pipe will be used to drill all hole sections to maximize hole cleaning, while minimizing stand pipe pressure. 34IPage FORMATION INTEGRITY TEST PROCEDURE Surface and Intermediate casing shoes will be tested to 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 bit into the casing shoe and close pipe ram preventer. 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 drill pipe pressures at 1/2 bbl intervals. 4. A running plot of pressure versus volume should be kept by the Drill Site Manager while the test is in progress. 5. 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. 6. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. 35IPage PROPOSED COMPLETION SCHEMATIC CINGSA C'LU Storage Proposed Completion Schematic FMC Wellbead-13 5'8-5000eMu:nbon FMC Tree-7"50000 complete asth SSV 11. 20- 133=X56 dnrea to 117'1VD/117 MD ?ialhbmton Wuelme Renievab1e SSSV a 150'TVD150 NO 'L 13 31"680 755 BTC Surface Cagng a 2.409'TVD'2713'1►D 16"hole'Ceme ted to Surface 7"2614 L80 Vam Top Tubing x 9 5 S"Bakes DY Liner Top Packer null 10'.eal bore a 4.894'TVD ".4S0'MD 9 5 S"4 LSC BTC In est erg„te C r 4.939'TVD 7.6S0 MD +01111 • 1__ 1-1”hose Cetalentecc to Surface • N�� —-51X1 of 4-6 SPF pei of anon: - g •• rafm— _ ' - 26=LSO Vim Top Produmon Lula Som 4.S9-'TVD '.4S0'`•fl)TOP to 5.154 TVD S.S32 TD S 1 2 bo:e Cementer 36IPage SURFACE USE PLAN FOR CLU STORAGE 2 Surface location: 1) Existing Roads Existing roads which will be used for access to CLU Storage 2 are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access CLU Storage 2 3) Location of existing wells Well CLU Storage 2 will be drilled on the CINGSA Drill Pad. A pad drawing is enclosed that shows the proposed well surface locations 4) Location of existing and/or proposed facilities The attached plot plans show the proposed facilities that will be installed on the Drill Pad and Main Facilities pad for the gas storage operations. 5) Location of Water Supply Water supply will be taken from a permitted water well on the Well Pad. 6) Construction Materials Installation of production equipment, flowlines and headers are expected during the drilling of this well. All operations in addition to well drilling will be addressed as Simultaneous Operations (SIMOPS) and will be addressed to mitigate potential hazards with proper pre-job safety meetings, coordination protocols, and emergency response procedures. 7) Methods of handling waste disposal; a) Mud and Cuttings Annular Injection will not be used for disposal of drilling waste(mud and cuttings). Waste(formation cuttings and drilling fluid)generating during the drilling of CINGSA's 5 gas storage wells will be disposed of in the Kenai Borough Solid Waste disposal site just outside of Soldotna, Alaska. Wet solid wastes coming off of the shale shakers and centrifuges will be gathered in a small tub at the base of the shale chute. AIMM Technologies is contracted to continuously pick up the cuttings in a 70 bbl vac truck and deliver to their processing facility in Kenai. AIMM will process the cuttings by adding dry solid material until it meets the filter test standards of the landfill then store the cuttings in 100 cubic yard piles in an approved lined pit until the results from multiple samples show the waste to be suitable for disposal at the Kenai Borough landfill. Once cleared for disposal, AIMM will load the cuttings onto transport trucks and take them to the land fill. Transport of Cuttings will be manifested from the time they leave the Drilling Pad to entry into the landfill. Excess and used Drilling fluids will be processed on site( Figure 1) in order to recover clear brine for re-use in the drilling operations. A facility will be assembled on the Drill Pad (Figure 2)to temporarily store the drilling fluid and clear brine. It consists of 5 x 500bbI closed top frac tanks manifolded to a processing skid. The processing skid contains pumps, mixers, and a centrifuge. The tanks and the equipment are placed in 60' x 75' secondary containment consisting of 12"x12"wood sills covered with 24 mil plastic pit liner(Figure 3). The containment is designed to hold 641 bbls (fluid level of 12") or 551 bbls to a containment fluid level of 11". This is 28% and 10% respective of the fluid 37IPage levels of the total volume of one frac tank. Frac tank operating volume will be kept to 1' of freeboard or approximately 456 bbls. The drilling fluid will be treated in two stages. The first stage will be to centrifuge out as many solids as possible in a single pass. The solids will be placed in steel bins for collection by AIMM Technologies if the fluid content is too high to meet the filter test standard. If the solids are dry enough to pass the filter test standard, they will be temporarily stored on site in steel bins and tested to determine if they are suitable for disposal at the Kenai Borough landfill. Once cleared for disposal, they will be manifested and transported from the Well Pad to the Kenai Borough landfill. The steel bins will be kept within the dewatering facility containment while in storage. Select polymers will be added to the drilling fluid in the second stage in order to flocculate the small particles left that would not centrifuge out. The flocculation combines the small particles into a sufficient mass to allow the centrifuge to remove them. The result should be a relatively clear brine that can be reused on the next well. Figure #1 Z I i —145'--- — w EwIFacility Area - \ IA, \� \ \ z ,-�; `t1 LL DSM TP \\.\\ O Shacks N LWDDD S i W k,;\,,, CSierra**1 O ,, Mud Loggers ,,• - .t111 CI 11•Iuctw Mud nag. �1u.�Citl r ilLJtC_iol, '•7�►;_LT Mil MatLawtst • Bachma+Creek T . 1�IX) n 2srts i 16117 _iik 5i [•- ;NM• I N I5L6 Cementing CLU Storage 5 DeWatering Plant ZO Ccntanmen: Nabors \ I I i TrreksMp • "'"• 1•}• rum Containment 1, , t r _. • i \ I i ' .� t 38 ' Page Figure #2 / 20' / / } 60' DeWatering Plant • t • 5 x 400bbl Frac Tanks o � co y-_- 40' Containment DeWatering Equipment Figure #3 Containment Section 12" x 12" Wood Sill Impermeable liner CV 39I6e b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be disposed of at a commercial facility. d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be picked up and disposed of through the municipal sewer system by a licensed local service company. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be delivered to the camp and gray and black water picked up and properly disposed of by a commercial pumper. 9) Plans for reclamation of the surface Reclamation of the pad will occur after the abandonment of CLU Storage and the other roposed wells on the pad. Approval of the plan of reclamation will be obtained from the U.S. Fish and Wildlife Service prior to any reclamation work beginning. 10) Surface ownership The surface owner of the land on the CINGSA Drill Pad is the State of Alaska. The pad is leased from the State of Alaska. 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Cook Inlet Natural Gas Storage Alaska, LLC and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: Name and Title: 40IPage Page 1 of 2 Maunder, Thomas E (DOA) From: Conrad Perry [cperry@att.net] Sent: Thursday, October 13, 2011 7:45 AM To: Maunder, Thomas E (DOA) Cc: 'Richard Gentges' Subject: RE: CLU Storage 2 Thanks Tom,would love to work through this with you. Give me a call when you are ready. conrad From: Maunder,Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Thursday, October 13, 2011 7:21 AM To: cperry@att.net Cc: Richard Gentges Subject: RE: CLU Storage 2 Conrad, Thanks for your reply. I will make the changes regarding item 1. On#4, you are correct that given the actual well situation that 3 K is correct rather than 5 K. I look forward to talking further on this. I also need to look at the past permits; this is the first one I have looked at since Winton left. Tom From: Conrad Perry [mailto:cperry@att.net] Sent: Wednesday, October 12, 2011 9:31 PM To: Maunder,Thomas E (DOA) Cc: Richard Gentges Subject: RE: CLU Storage 2 Tom, The following are answers to your questions. I am in town this week and would like to go over the PTD with you in person to make sure the format and corrections meet the needs of the agency. 1. 9 5/8"setting depth is 7,680'MD (4,939'TVD). I rechecked the cement calculations and the only one I will change will be the 9 5/8"first stage lead. It appears to be only 6.25%excess. Based on the CLU Storage 4 well we should be using 15%. The 401 should read 550 sxs instead of 508 sxs. 2. The gross XS on the 9 5/8"second stage is 8%, however, taking only the open hole from 3500' its 26%. 3. I am coming up with 66%excess open hole with an 80'shoe track and 200' lap. We averaged 8.9"open hole on the last well which was about half the length. Total excess will be about 17 bbls if gauge hole. We will be doing our second liner job soon and will re-evaluate that number. 4. This is going to be tough to write up, but here is my thought process. Our actual casing test pressures will be as described on page 17 (all are above 1,500 psi, but with the exception of the 7"are below 2,500 psi). If we test to only these pressures we are in violation of the regs which state we must test to a minimum of 2500 psi due to the 5M stack. Since we could use a 3M stack, the actual minimum would be 1,500 psi. The casing test pressures are above the Maximum Anticipated Surface pressures. Best Regards, conrad 10/13/2011 Page 2 of 2 From: Maunder,Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Wednesday, October 12, 2011 2:52 PM To: cperry@att.net Cc: Regg, James B(DOA) Subject: CLU Storage 2 Conrad, I am reviewing the application for CLU Storage 2 and have a couple of questions. 1. What is the setting depth of the 9/5/8" casing?? On the 401 is says 8753' md, 4917' tvd, but in the Cement Program summary on page 32 it is given at 7680' md, 4938' tvd. As well, please check that the cement calculations are appropriate. 2. For the 2nd stage on the 9/5/8"casing, what is the planned XS cement? I calculate 8%. 3. For the 7", what is the planned XS cement? I calculate 70%. 4. You make a great statement about the casing test requirement on page 20 and then default to 50%of 3000 psi. How does 1500 psi relate to the"most severe conditions expected while drilling or during the production life of the well"? In my opinion, the 50% value is a minimum and 50% of the BOP rating may are may not be an appropriate test pressure for a given casing string. Thanks in advance, Tom Maunder, PE AOGCC 10/13/2011 OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. TRANSMITTAL LETTER CHECKLIST WELL NAME c Z1/ 5 a PTD# //fm's Development Service Exploratory Stratigraphic Test Non-Conventional Well • FIELD: G',4i,j//1/c y LODA POOL: c —7ZeL//1/� G' Circle Appropriate Letter/ Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER 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 produce/inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All 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. Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed 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. 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O c Hi .� C 3 N c<o , , , . , , v 3 0 vo m , , , , , , , , , , , O 3, , , , , n c m ( n 5 °- O 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 simplfy 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 infoi lation. CLU Storage 2 Kenai Borough, Alaska October 30 to November 13, 2011 Provided by: Approved by: Ari Berland Compiled by: Ralph Winkelman L a r r y R e s c h Distribution Date: November 25, 2011 T.D. Date: November 13, 2011 CLU STORAGE 2 2 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW ................................................................................................ 3 1.1 Equipment Summary ...................................................................................................................... 3 1.2 Crew................................................................................................................................................ 3 2 GENERAL WELL DETAILS ................................................................................................................... 4 2.1 Well Objectives ............................................................................................................................... 4 2.2 Well Resume .................................................................................................................................. 5 2.3 Hole Data ........................................................................................................................................ 5 3 GEOLOGICAL DATA ............................................................................................................................. 6 3.1 Lithology Review ............................................................................................................................. 6 3.2 Sampling Program ........................................................................................................................ 16 4 DRILLING DATA .................................................................................................................................. 17 4.1 Daily Activity Summary ................................................................................................................. 17 4.2 Surveys ......................................................................................................................................... 22 4.3 Bit Record ..................................................................................................................................... 25 4.4 Mud Record .................................................................................................................................. 26 4.5 Drilling Progress Chart .................................................................................................................. 27 5 DAILY REPORTS ................................................................................................................................ 28 Enclosures: 2”/ 100’ Formation Log (MD and TVD) 2”/ 100’ LWD Combo Log (MD and TVD) 2”/ 100’ Drilling Dynamics Log (MD) Final Well Data on CD/ROM CLU STORAGE 2 3 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type /Position Total Downtime Comments Computer – Driller’s Monitor Azonics 0 Computer -- Pit Monitor Azonics 0 Computer -- Company Man RigWatch Remote (HP Compaq) 0 Computer – Directional Driller RigWatch Remote (HP Compaq) 0 Computer – Tool Pusher RigWatch Remote (HP Compaq) 0 Computer – Mud Engineer RigWatch Remote (HP Compaq) 0 Computers – Mudloggers (4) RigWatch Master, DML, RigWatch Remote, WITS Feed (all HP Compaq) 0 Ditch gas QGM gas trap; Flame ionization total gas & chromatography. 0 Hook Load /Weight on bit Fed from Academy PLC 0 Mud Flow In Derived from Strokes/Minute and Pump Output 0 Mud Flow Out Vega Sonic Flow-line Sensor 0 Pit Volumes, Pit Gain/Loss Vega Sonic Volume Sensors (8) 0 Pump Pressure Fed from Academy PLC 0 Pump Stroke Counters (2) Hard-wired Proximity Sensors 0 Rate of Penetration Crown Sheave Encoder 0 RPM Fed from Academy PLC 0 Torque Fed from Academy PLC 0 WITS—To/ From Baker Hughes Inteq RigWatch Remote (HP Compaq) 0 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML057 Mud Loggers Years Days Sample Catchers Years Days Technician Days Ralph Winkelman 20 23 Justin Ashar 1 14 Allen Williams 1 Larry Resch 9 23 Justin Rosenblume 1 17 Steve Forrest 2 Dan Hillegeist 1 3 *1 Years experience as Mudlogger *2 Days at wellsite between rig up and rig down of logging unit. CLU STORAGE 2 4 2 GENERAL WELL DETAILS 2.1 Well Objectives The objective of CLU Storage 2 is to drill and log a single zone gas storage well in the Cannery Loop/ Sterling C Gas Pool with a minimum of hole problems or other concerns. The Sterling C Gas Pool is vertically defined as the underground formations comprising the C1 and C2 sands, bounded by a coal at the base of the B5 sand formation (top) and the top of the Upper Beluga formation (base). The Sterling C Pool is vertically defined by the “Pool Type Log” Cannery Loop Unit (CLU)-8 well as the interval between the depths of 4871 TVDSS and 5101 TVDSS. The gross reservoir interval thickness averages approximately 200 feet across the pool area, and average net sand thickness is approximately 95 feet. The structure is comprised of fluvial channel sandstones with interbedded silty sands and shales folded in a structural 4-way dip closure. Ultimately, CINGSA expects to utilize this depleted pool for gas injection and storage. CLU STORAGE 2 5 2.2 Well Resume Operator: CINGSA Well Name: CLU Storage 2 Field: Cannery Loop/ Sterling C County: Kenai Borough State: Alaska Company Representatives: Steve Ratcliff, John Nicholson, Mike Grubb Location: Surface Coordinates 570’ FNL, 1763’ FEL Sec. 9 T5N R11W Ground Elevation 33.’ AMSL Rotary Table Elevation 53.5’ AMSL Classification: Gas Storage API #: 50-133-20599-00-00 Permit #: 211135 Rig Name /Type: NAD 105AC/ Arctic/ Triple Spud Date October 30, 2011 Total Depth Date: November 13, 2011 Total Depth 8577’ Primary Targets Sterling C Sands Primary Target Depths Total Depth Formation: Completion Status: Run 7” Liner LWD-MWD Services. Baker Hughes Inteq Directional Drilling Baker Hughes Inteq Wireline Logging Services Baker Atlas Drilling Fluids Service MISwaco CANRIG Logging Geologists: Ralph Winkelman, Larry Resch CANRIG Sample Catchers: Justin Ashar, Justin Rosenblume, Dan Hillegeist 2.3 Hole Data Hole Section Maximum Depth TD Formation Mud Weight (ppg) Dev. (oinc) Casing Diam. Shoe Depth LOT (ppg) MD (ft) SSTVD (ft) MD (ft) SSTVD (ft) Conductor 118’ 64.50’ Recent 0.0 0.00 20” 118’ 64.50 NA 16’” 2731 2368.31 Sterling 9.0 54.70 13 3/8” 2721’ 2362.54 15.0 12-1/4” 7756’ 4903.47’ Sterling 9.3 79.37 9 5/8” 7746’ 4901.62 11.2 8-1/2” 8577’ 5056.79’ Sterling 9.1 78.96 7” 8575’ 5056.41 Standard Completion CLU STORAGE 2 6 3 GEOLOGICAL DATA 3.1 Lithology Review Sand (2740' - 2800') = medium to medium light gray overall with individual liths dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, light to medium greenish gray and bluish green, dusky red, orange and rust common; very fine upper to coarse upper, dominantly fine upper to medium lower; angular to subangular; unconsolidated; poor to fair sorting. Sand/ Conglomeratic Sand (2800'-2900') = medium to medium light gray with strong salt and pepper appearance from abundant multicolored liths, dominantly clear to translucent quartz and volcanic glass with abundant liths as described previously; very fine lower to trace very coarse upper, dominantly fine upper to medium upper; angular to trace subrounded, dominantly subangular; poorly sorted; dominantly unconsolidated with trace very fine sandstone; light gray; fragile grain supported; well sorted; non calcareous. Sand (2900' - 2970') = medium to medium light gray with individual grains dominantly clear to translucent quartz and volcanic glass, light to medium greenish gray, dark bluish green, rust and orange; very fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; unconsolidated; trace very light gray sandstone; very fine grain; fragile; grain supported; non calcareous; trace very dark gray and dark brown to black carbonaceous material; irregular shaped; fragile; silty to gritty texture; earthy luster; no outgassing. Sand (2970' - 3030') = unconsolidated; medium light gray with slight salt and pepper appearance; lower fine to upper very fine grain; angular, rarely subangular; discoidal to prismoidal; fair to moderate sorting; > 60% translucent transparent and very light gray quartz; locally abundant reddish orange mafic clasts; remaining components of light pale green, yellowish brown, occasional medium dark gray lithics; note biotite, chlorite; rare trace woody sublithic coal. Sand (3030' - 3090') = unconsolidated; medium light gray overall with slight salt and pepper appearance; upper very fine to lower fine grain; angular to slightly subangular in part; prismoidal to subprismoidal; occasional spherical volcanic glass; poor, locally moderate sorting; no evidence of cementation or matrix component; > 60% translucent, transparent quartz; abundant reddish orange mafic clasts; medium dark gray, pale yellowish green; bluish green, pale yellowish brown, lithics; trace biotite; note occasional very light gray to light gray tuffaceous clay. Sand (3090' - 3180') = unconsolidated; slight salt and pepper appearance; predominantly very fine grain, lower fine common; angular to subangular, occasionally subrounded; discoidal to subprismoidal; poor to fair sorting; no evidence of cementation or matrix component; > 60% translucent and transparent quartz; abundantly volcano-clastic with reddish orange clasts and volcanic glass; note very light gray to light gray tuff/ tuffaceous clay; trace dark brown to grayish black woody, peat-like sublithic coal. Sand (3180' - 3300') = unconsolidated; medium gray to medium light gray overall, slight salt and pepper appearance; very fine to lower fine grain, occasionally upper fine grain; subangular, becoming subrounded in part; fair to locally moderate sorting; no evidence of cementation or matrix component; > 50% translucent, very light gray, transparent quartz; abundant medium to medium dark gray clasts; lesser amounts of reddish orange, yellowish green, bluish green, amber, lithics; note multi-mineral clasts with biotite, occasionally encrusted with reddish orange volcanic material; rare tuff/ tuffaceous clay. CLU STORAGE 2 7 Sand (3300' - 3390') = unconsolidated; medium dark gray overall with slight salt and pepper appearance; fine grain, upper very fine common, trace lower medium; subangular to subrounded, often angular; poor of fair sorting; occasionally appears consolidated with abundant medium light gray clay component; crumbly; noncalcareous; dominantly translucent, very light gray and transparent quartz; abundant medium dark gray, reddish orange, pale green to yellowish green, amber lithics; biotite common; trace medium light gray clay/ tuffaceous clay, often with extremely fine spikey, scale-like carbonaceous material and black wisps. Sand/ Sandstone (3390' - 3480') = predominately unconsolidated as previously described; sandstone appears varicolored salt and pepper; lower very fine to fine grain, rare medium grain; subangular to subrounded, angular common; subprismoidal to discoidal; poorly sorted; grain supported with yellowish gray clay matrix; trace visible porosity; non to slightly calcareous; firm, friable; dominantly translucent and very light gray quartz with equally distributed dark to medium dark gray, reddish orange lithic clasts; abundant biotite; extremely fine well rounded/ spherical to angular/ prismoidal glass-like transparent clasts; note light gray tuffaceous clay/ siltstone. Tuffaceous Clay/ Siltstone (3480' - 3570') = very light gray to light gray, occasionally very light brownish gray; soft; slightly cohesive, non-adhesive; clumpy; pulverulent to slightly crumbly in part; no definable fracture; occasionally earthy with organic detritus; no definable cuttings habit; dull to slightly sparkly in part with varying degrees of silt, extremely fine well rounded quartz grains and occasional glass shards; noncalcareous; generally smooth texture, non gritty, non abrasive; occasional cuttings display very fine bedding/ laminae of organic material/ sublithic coal; note trace siderite. Sand/ Conglomeratic Sand (3570'-3660') = unconsolidated; overall medium dark gray to medium gray; slight pepper and salt appearance; very fine grain, occasionally lower fine grain; subrounded, well rounded in part with good sphericity; note well rounded lower course grained pebble fragments with fresh high impact fracture; no evidence of cementation; interval contains thinly interbedded tuffaceous clay/silt and may be part of a matrix component; 50% milky gray, translucent and abundant glass-like transparent quartz; medium dark gray, pale yellowish green lithics common; note decreased reddish orange clasts; trace biotite, carbonaceous material. Sand (3660' - 3780') = unconsolidated; medium dark gray overall; slight pepper with salt appearance; very fine to lower medium grain in part; subangular to subrounded; discoidal to subprismoidal; fair sorting; occasionally poorly consolidated; grain supported in part, often with abundant clay matrix; note trace incorporated carbonaceous detritus; noncalcareous; none to trace visible porosity; predominately milky light gray, matte, slightly translucent quartz; abundant glass-like transparent well rounded volcanic glass clasts and extremely fine, thin glass shards; remaining components dark gray to medium dark gray, reddish orange, pale yellowish green lithic fragments; thinly interbedded tuffaceous clay/ silt continues; occasional carbonaceous clasts/ sublithic coal. Sand (3780' - 3900') = unconsolidated; medium dark gray to dark gray overall; slight salt and pepper appearance; fine grain, often lower medium grain; note significant change in grain character from aforementioned samples; subrounded to round, rare subangular; subdiscoidal; occasionally consolidated; grain supported; friable to well cemented; non calcareous; no apparent clay matrix; trace to poor visible porosity; dominantly milky white to very light gray grains in similar proportion to dark gray, medium dark gray, bluish green lithics; note biotite, carbonaceous detritus; note continued thinly interbedded tuffaceous clay/silt light gray to medium light gray; soft to slightly firm; air dried and rehydrated cuttings readily absorb water but do not swell or crumble; generally dull to slightly sparkly with varying degrees of silt and fine clastic fragments; note appearance of dull to subwaxy clay; often contains very small fragments, spikes and scale like carbonaceous material. CLU STORAGE 2 8 Sand (3900' - 3960') = unconsolidated; medium dark gray overall with slight salt and pepper appearance; medium to fine grain, subrounded to slightly subangular in part; note occasional well rounded coarse grains and lithic fragments; poor to fair sorting; generally subdiscoidal; no evidence of cementation of matrix component; a conglomeratic sand in places. Sand/ Conglomeratic Sand (3960' - 4050') = unconsolidated; medium dark gray overall; slight salt and pepper; lower fine to upper medium grain, occasional lower course grain; subrounded to well rounded in part, very minor subangular; subdiscoidal to prismoidal in part; poorly sorted; well rounded pebble fragments with fresh high impact fracture common; predominately milky white to very light gray quartz with abundant medium dark gray, bluish green clasts; interval also contains locally abundant transparent volcanic glass clasts, occasional glass shards, reddish orange mafics. Tuffaceous Clay/ Siltstone (4050' - 4140') = light gray, dark yellowish gray to pale yellowish brown, dark yellowish brown in part; poor to fair cohesion, no adhesive properties; firm to soft in part; crumbly to slightly crunchy; irregular, slightly splintery fracture; earthy; subplaty to flaky; generally dull, occasionally subwaxy with increased tuff content, earthy with increased organic component; very carbonaceous in part, often grading towards a carbonaceous shale/ earthy sublithic coal; occasional fragments of brownish black to dark gray peat/ lignite; no visible outgassing. Organics/ Carbonaceous Shale/ Coal (4140'-4200') = note interval contains significant tuffaceous clay/ siltstone/ sandstone as above; organic material varies from dusky brown to dusky yellowish brown, dark yellowish brown, brownish black to black; generally very earthy with significant sediment component; often silty to argillaceous grading towards a carbonaceous shale; tabular, platy to subfissile in part; note occasional sand/ silt lenses; generally poorly developed; occasionally better developed, black to very dark gray; subvitreous; slight birdseye fracture in part; no visible outgassing. Sand/ Conglomeratic Sand (4230'-4310') = medium to medium light gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium greenish gray to greenish blue, medium to dark gray to black, rust, orange, pale rose and trace yellow; very fine upper to trace very coarse upper, dominantly medium upper to lower; angular to trace subrounded pebbles, dominantly subangular; poorly sorted; unconsolidated with trace very light gray to light grayish brown sandstone; very fine grain; fragile; grain supported non calcareous; commonly grades between sandy siltstone and silty sandstone. Tuffaceous Claystone/ Tuffaceous Siltstone (4320' - 4410') = light to very light gray with light yellowish gray and light brownish gray secondary hues; irregular shaped cuttings; very soft and fragile to moderately firm; silty to clayey texture; dull to slightly waxy luster; slight to moderately soluble and expansive; poor adhesiveness; fair to good cohesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds; black with dark brown secondary hues; firm to moderately hard; irregular to blocky and platy cuttings; planar fracture dominant with trace birdeye and conchoidal fracture; smooth to slightly gritty texture; vitreous to earthy luster; no visible outgassing. Sand/ Conglomeratic Sand (4410'-4500') = salt and pepper appearance from abundant multicolored liths, dominantly clear to translucent quartz and volcanic glass, light to medium green to greenish gray, dark gray to black, orange, dusky red, pale rose and rust; very fine lower to very coarse upper, dominantly medium upper to lower; angular to subrounded, dominantly subangular; poorly sorted; unconsolidated with common light gray sandstone; very fine to medium grain; fragile to moderately hard; grain supported; poorly sorted; non calcareous; trace dark brown to black micro carbonaceous inclusions. CLU STORAGE 2 9 Sand/ Sandstone (4500' - 4580') = medium to medium light gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium greenish gray to greenish blue, medium to dark gray to black, rust, orange, pale rose and trace yellow; very fine upper to trace very coarse upper, dominantly medium upper to lower; angular to trace subrounded pebbles, dominantly subangular; poorly sorted; unconsolidated with trace very light gray to light grayish brown sandstone; very fine grain; fragile; grain supported non calcareous; commonly grades between sandy siltstone and silty sandstone; trace thin coals. Tuffaceous Claystone/ Tuffaceous Siltstone (4590' - 4690') = light to very light gray with light yellowish gray and light brownish gray secondary hues; irregular shaped cuttings; very soft and fragile to moderately firm; silty to clayey texture; dull to slightly waxy luster; slight to moderately soluble and expansive; poor adhesiveness; fair to good cohesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds; black with dark brown secondary hues; firm to moderately hard; irregular to blocky and platy cuttings; planar fracture dominant with trace bird eye and conchoidal fracture; smooth to slightly gritty texture; vitreous to earthy luster; trace visible outgassing. Coal/ Carbonaceous Material/ Shale (4700' - 4800') = black with dark brown secondary hues; fragile to very firm to moderately hard; irregular to blocky and platy cuttings; planar fracture dominant with birdeye and conchoidal common; smooth to slightly gritty texture; vitreous to earthy luster; non to trace outgassing observed. Tuffaceous Claystone/ Tuffaceous Siltstone (4740' - 4820') = light to very light gray with light yellowish gray and light bluish gray secondary hues; soft and fragile to very firm; irregular shaped cuttings; silty to clayey texture dull to waxy luster; moderately soluble and expansive; poor to fair cohesiveness poor adhesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; non calcareous. Sand/ Sandstone (4810' - 4900') = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light to medium greenish gray, medium bluish green, trace rust, orange and pale rose; very fine lower to trace very coarse lower, dominantly fine upper to medium lower; angular to trace subrounded, dominantly subangular; poor to fair sorting; dominantly unconsolidated with scattered fine grain sandstone; light brownish gray; well sorted; grain supported; non calcareous; trace thin coal/ carbonaceous shale beds; no outgassing. Sand (4890' - 5970') = medium light to light gray overall with a weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to light greenish gray, dark gray to black, trace orange, rust and pale rose; very fine lower to medium upper, dominantly fine upper to lower; angular to subangular; moderately well to well sorted; unconsolidated with trace very light gray sandstone; very fine grain; well sorted; fragile to friable; non calcareous; commonly grades between silty sandstone and sandy siltstone; trace dark brown to black carbonaceous material. Sand/ Conglomeratic Sand (4980'-5060') = salt and pepper appearance from abundant multicolored liths, dominantly clear to translucent quartz and volcanic glass, light to medium green to greenish gray, dark gray to black, orange, dusky red, pale rose and rust; very fine lower to very coarse upper, dominantly medium upper to lower; angular to subrounded, dominantly subangular; poorly sorted; unconsolidated with common light gray sandstone; very fine to medium grain; fragile to moderately hard; grain supported; poorly sorted; non calcareous. CLU STORAGE 2 10 Sand (5060' - 5120') = medium light to light gray overall with individual liths dominantly clear to translucent quartz and volcanic glass, light to medium to dark gray, black, light to medium greenish gray, medium bluish green, trace rust, orange and pale rose; very fine lower to trace very coarse lower, dominantly fine upper to medium lower; angular to trace subrounded, dominantly subangular; poor to fair sorting; dominantly unconsolidated. Sand/ Conglomeratic Sand (5120'-5200') = salt and pepper appearance from abundant multicolored liths, dominantly clear to translucent quartz and volcanic glass, light to medium green to greenish gray, dark gray to black, orange, dusky red, pale rose and rust; very fine lower to very coarse lower, dominantly medium upper to lower; angular to subrounded, dominantly subangular; poorly sorted; unconsolidated with trace light gray sandstone; very fine to fine grain; fragile to moderately hard; grain supported; poorly sorted; non calcareous; trace very light gray to grayish white ashy tuff; fragile to pulverulent; non calcareous; occasionally acts as a supporting matrix for loose sands. Sand/ Conglomeratic Sand (5200'-5290') = medium to medium light gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium greenish gray to greenish blue, medium to dark gray to black, rust, orange, pale rose and trace yellow; very fine upper to trace very coarse upper, dominantly medium upper to lower; angular to trace subrounded pebbles, dominantly subangular; poorly sorted; unconsolidated; trace coal; black with dark brown secondary hues; firm to moderately hard; crunchy to sectile; platy to blocky; planar fracture dominant; smooth to slightly gritty texture; earthy to vitreous luster; trace outgassing. Tuffaceous Claystone/ Tuffaceous Siltstone (5300' - 5390') = light to very light gray with light yellowish gray and light brownish gray secondary hues; irregular shaped cuttings; very soft and fragile to moderately firm; silty to clayey texture; dull to slightly waxy luster; slight to moderately soluble and expansive; poor adhesiveness; fair to good cohesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds; black with dark brown secondary hues; firm to moderately hard; irregular to blocky and platy cuttings; planar fracture dominant; smooth to slightly gritty texture; earthy luster; no to trace outgassing bubbles. Sand/ Sandstone (5390' - 5540') = light to medium light gray, occasionally dark yellowish gray; loose sand is very fine to fine grain, medium, occasionally coarse grain; subrounded to well rounded in part; poorly sorted; well rounded pebble fragments displaying high impact fracture common; when consolidated, sandstone is very fine to rarely lower fine grain; subrounded to well rounded with very good sphericity; moderate sorting; varies from grain supported with clay fill to argillaceous matrix support; none to trace visible porosity; often grades to a silty/ arenaceous, tuffaceous claystone; interval contains several thinly interbedded carbonaceous shale/ coals; grayish black to black, olive black to brownish black; dense; crunchy to crumbly in part; often earthy; irregular fracture; platy to subfissile in part; dull to subvitreous; no visible outgassing; note abundant ashy/ clay clasts with carbonaceous fragments, microthin laminae, wisps. Sand/ Conglomeratic Sand (5550'-5670') = medium light to light gray overall with a strong salt and pepper appearance from abundant multicolored liths, dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, white bluish green, greenish gray, orange, rust and pale rose liths all present in trace to 10% or less; very fine upper to very coarse lower, dominantly fine upper to medium upper, angular to subangular; poorly sorted; unconsolidated. Coal/ Carbonaceous Shale (5630'-5660') = black with brownish black and grayish black secondary hues; massive to platy cuttings; planar fracture dominant; smooth to slightly gritty texture; vitreous to earthy luster; trace outgassing bubbles observed. CLU STORAGE 2 11 Tuffaceous Claystone/ Tuffaceous Siltstone (5670' - 5770') = light gray with yellowish gray secondary hues; soft; fragile to pulverulent; irregular shaped cuttings; silty to clayey texture; dull, waxy luster; hydrophilic; moderately soluble and expansive; poor adhesiveness; poor to fair cohesiveness; non calcareous trace dark brown to black microthin carbonaceous laminations and inclusions; trace to common thin coal beds; black with dark brown secondary hues; firm to hard and brittle; smooth to gritty texture; earthy to vitreous luster; trace outgassing bubbles observed. Sand/ Sandstone/ Conglomeratic Sand (5760' - 5860') = medium light to light gray with a very light yellowish gray secondary hue overall, individual grains dominantly clear to translucent quartz and volcanic glass with the multicolored hues as noted previously; very fine lower to very coarse upper, dominantly fine upper to medium lower; angular to trace subrounded, dominantly subangular; poorly sorted; dominantly unconsolidated with common very light gray sandstone; very fine grain; fragile; grain supported and salt and pepper sandstone; fine to coarse individual grains; multicolored; hard; white to yellowish brown cement; non calcareous; trace thin coals. Tuffaceous Claystone/ Tuffaceous Siltstone (5840' - 5950') = light to very light gray with light yellowish gray and light brownish gray secondary hues; soft and fragile to moderately hard to firm; irregular shaped cuttings with trace pdc bit action scooped appearance; silty to clayey to slightly gritty texture; dull to earthy to slightly waxy luster; hydrophilic; moderately expansive and soluble: poor adhesiveness; poor to fair cohesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; common light gray sandstone; fragile; very fine grain commonly grades between silty sandstone and sandy siltstone; trace to common thin coal/ carbonaceous shale beds. Coal/ Carbonaceous Shale (5900'-6050') = black with dark brown to brownish black secondary hues; firm to moderately hard; brittle at times; massive to blocky and platy; planar fracture dominant with conchoidal and birdeye fracture present; smooth to granular texture; earthy to vitreous luster; subbituminous; trace to common outgassing bubbles observed from hard fragments; commonly grades to a dark brown carbonaceous shale; firm silty to gritty texture; earthy luster. Sand/ Sandstone (6000' - 6080') = very light to light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace other varicolored liths as previously noted; very fine lower to medium upper, dominantly fine grain; angular to subangular; moderately well sorted; unconsolidated with trace very fine sandstone; very light gray; fragile. Sand/ Sandstone (6080'- 6150') = medium light gray overall with a weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to light greenish gray, dark gray to black, trace orange, rust and pale rose; very fine lower to medium upper, dominantly fine upper to lower; angular to subangular; moderately well to well sorted; unconsolidated with trace very light gray sandstone; very fine grain; well sorted; fragile to friable; non calcareous; commonly grades between silty sandstone and sandy siltstone. Tuffaceous Claystone/ Tuffaceous Siltstone (6150' - 6240') = light to very light gray with light yellowish gray and light brownish gray secondary hues; irregular shaped cuttings; very soft and fragile to moderately firm; silty to clayey texture; dull to slightly waxy luster; slight to moderately soluble and expansive; poor adhesiveness; fair to good cohesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds; black with dark brown secondary hues; firm to moderately hard; irregular to blocky and platy cuttings; planar fracture dominant; smooth to slightly gritty texture; earthy luster; no to trace outgassing bubbles. CLU STORAGE 2 12 Sand (6240' - 6330') = medium light to light gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to light greenish gray, dark gray to black, trace orange, rust and pale rose; very fine lower to coarse lower, dominantly fine upper to lower; angular to subangular; moderately well to well sorted; unconsolidated with trace very light gray sandstone; very fine grain; well sorted; fragile to friable; non calcareous; commonly grades between silty sandstone and sandy siltstone; trace thin coal/ carbonaceous shale beds. Sand/ Conglomeratic Sand (6320'-6420') = medium to medium light gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium greenish gray to greenish blue, medium to dark gray to black, rust, orange, pale rose and trace yellow; very fine upper to trace very coarse upper, dominantly medium upper to lower; angular to trace subrounded pebbles, dominantly subangular; poorly sorted; unconsolidated; trace light gray sandstone; very fine grain; well sorted; firm to friable; grain supported; non calcareous. Sand/ Conglomeratic Sand (6420'-6510') = salt and pepper appearance from abundant multicolored liths, dominantly clear to translucent quartz and volcanic glass, light to medium green to greenish gray, dark gray to black, orange, dusky red, pale rose and rust; very fine lower to very coarse lower, dominantly medium upper to lower; angular to subrounded, dominantly subangular; poorly sorted; unconsolidated with trace light gray sandstone; very fine to fine grain; fragile to moderately hard; grain supported; poorly sorted; non calcareous; trace very light gray to grayish white ashy tuff; fragile to pulverulent; non calcareous; occasionally acts as a supporting matrix for loose sands. Sand/ Conglomeratic Sand (6510'-6590') = medium to medium light gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium greenish gray to greenish blue, medium to dark gray to black, rust, orange, pale rose and trace yellow; very fine upper to trace very coarse lower, dominantly medium upper to lower; angular to trace subrounded, dominantly subangular; poor to fair sorting; dominantly unconsolidated with trace ash supported sandstone; white ashy matrix; very fragile to pulverulent; fine to medium grain suspended sands; non calcareous. Sand (6600' - 6720') = medium to medium light gray overall with a weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to light greenish gray, dark gray to black, trace orange, rust, pale rose, light to medium bluish green, white and yellowish green; very fine upper to very coarse lower, dominantly medium upper to lower; angular to subangular; poor to fair sorting; dominantly unconsolidated with trace very loosely grain supported pieces; very fragile; non calcareous; trace ash supported sandstone; white matrix; very fragile to pulverulent; supporting fine to medium varicolored grains; non calcareous; trace tuffaceous claystone; light gray; soft to moderately firm; irregular shape; silty to clayey; dull to waxy; non calcareous. Sand (6720" - 6780') = unconsolidated; medium light gray to light gray overall; salt and pepper; fine to very fine grain, subrounded to subangular; discoidal to subprismoidal, moderate to well sorted; note occasional well rounded coarse pebble fragments; no evidence of cement or matrix; > 60% milky white to very light gray, matte to slightly transparent quartz; remaining medium to medium light gray, pale yellowish green; reddish orange to pinkish clasts; trace transparent volcanic glass, biotite, tuffaceous clay siltstone. Sand/ Conglomeratic Sand (6780' - 6870') = unconsolidated; medium light gray to medium gray; salt and pepper appearance; fine grain, occasionally medium grain; subrounded to subangular; fair to moderate sorting; subdiscoidal to subprismoidal; note increase in coarse grain well rounded pebble fragments; no evidence of consolidation or cementation; clasts occasionally well entrained in soft, mushy to pasty clays, possibly due to sample processing; trace very light gray ash, light gray to light brownish gray tuffaceous claystone and siltstone. CLU STORAGE 2 13 Sand/ Conglomeratic Sand (6870' - 6930') = unconsolidated; medium light gray overall with salt and pepper appearance; fine to medium grain, lower coarse grain common; subrounded to rounded, occasionally subangular; subdiscoidal; fair to moderate sorting; occasional well rounded pebble fragments displaying high impact fracture; no evidence of cementation or matrix; > 60% very light gray to milky white, transparent to translucent quartz; remaining varicolored medium to medium dark gray, pale yellowish green to bluish green; pink to reddish orange, amber lithics; biotite rare. Sand/ Conglomeratic Sand (6930' - 7050') = unconsolidated; medium to medium light gray overall with salt and pepper appearance; very fine to fine grain, occasionally medium, rare coarse; subangular to subrounded with occasional well rounded pebble fragments; subdiscoidal, poor to fair sorting; no evidence of cementation or matrix; note trace of white to very light gray tuffaceous sandstone; non calcareous; no visible porosity; 60- 70% milky white to very light gray, often transparent, less translucent quartz; remaining varicolored medium dark gray, grayish black, bluish green, amber lithics. Sand (7050' - 7110') = unconsolidated; medium light gray overall with slight salt and pepper appearance; upper very fine to lower fine grain; subrounded to rounded; subdiscoidal; good sorting; occasional course well rounded pebbles and pebble fragments; continued trace white to very light gray tuffaceous sandstone; noncalcareous; varies from grain supported to matrix supported; no visible porosity; dominantly milky white to very light gray, opaque and translucent quartz; remaining varicolored lithics as described above; note trace carbonaceous shale. Sand (7110' - 7200') = unconsolidated; medium light gray overall with a moderate salt and pepper appearance; very fine to fine grain; subangular to subrounded, occasionally well rounded; discoidal; moderate sorting; also upper medium to lower course grain pebbles and pebble fragments; well rounded, often with fresh fractured surfaces; no evidence of cementation or matrix; dominantly milky white to very light gray, opaque, translucent quartz; note abundant well rounded volcanic glass clasts and shards. Sand (7200' to 7290') = unconsolidated; medium light gray overall, moderate salt and pepper appearance; very fine to fine grain; subangular to subrounded, subangular to angular common; subdiscoidal to subprismoidal; fair sorting; note absence to trace only of coarse pebbles or pebble fragments; trace consolidated, very fragile tuffaceous sandstone/ siltstone and arenaceous claystone; dominantly milky white to light gray, opaque and abundant translucent quartz; very thin, sharp glass shards common; trace very earthy, poorly developed coal/ carbonaceous material. Sand (7290' - 7380') = unconsolidated; medium light gray overall, slight salt and pepper appearance; fine to upper very fine grain; subrounded, occasionally well rounded; good sorting; discoidal to spherical in part; no evidence of cementation or matrix; dominantly milky white to light gray, opaque quartz with abundant glass-like transparent clasts and shards; remaining components varicolored black, dark gray, reddish orange to pinkish, amber, yellow to yellowish gray; trace disaggregated biotite and incorporated in grains. Sand (7380' - 7440') = unconsolidated; medium light gray overall with slight salt and pepper appearance; very fine to fine grain; subrounded to rounded, occasionally subangular; moderate to well sorted; subdiscoidal; no evidence of cementation or matrix; dominantly very light gray and milky white, opaque quartz, locally abundant glass-like transparent glass clasts, rare glass shards; trace tuffaceous clay/ siltstone; trace carbonaceous shale/ earthy coal. Sand (7440' - 7500') = unconsolidated; general medium light gray with slight salt and pepper; very fine to fine grain subrounded to rounded, occasionally subangular; subdiscoidal; moderate to well sorted; occasionally poorly consolidated; fragile; noncalcareous; abundant yellowish gray to pale yellowish brown argillaceous matrix; generally matrix supported, rarely grain supported; silty in part; no visible porosity. CLU STORAGE 2 14 Coal/ Carbonaceous Shale (7500' - 7530') = top of interval is an earthy, dark reddish brown to brownish black; poorly developed coal; peaty in part; very soft, crumbly to flaky in part; irregular cuttings; becoming more shaley and coal-like; black to brownish black; firm to hard; irregular cuttings habit, occasionally tabular; dull to subwaxy, subvitreous in part; hackly to birdseye fracture; firmer, more dense cuttings exhibit vigorous outgassing. Sand/ Conglomeratic Sand (7570'-7680') = medium to medium light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, light to medium greenish gray to greenish blue, medium to dark gray to black, rust, orange, pale rose and trace yellow; very fine upper to very coarse upper, dominantly medium upper to lower; angular to trace subrounded, dominantly subangular; poor to fair sorting; dominantly unconsolidated with trace ash supported sandstone; white ashy matrix; very fragile to pulverulent; fine to medium grain suspended sands; non calcareous; common thin coal beds throughout this interval. Tuffaceous Claystone/ Tuffaceous Siltstone (7680' - 7750') = very light gray with light brownish/ yellowish gray secondary hues; soft/ fragile to firm; irregular shaped cuttings; silty to clayey texture; dull, earthy to waxy luster; trace dark brown to black microthin carbonaceous laminations and inclusions; noncalcareous. Sand (7750' - 7860') = light gray to very light gray overall with clear to translucent quartz and volcanic glass dominant, trace medium to dark gray, black, dusky red, rust, pale rose and light green to greenish gray; very fine lower to coarse upper, dominantly fine upper to medium upper; angular to trace subrounded, dominantly subangular; poorly sorted; unconsolidated. Tuffaceous Claystone/ Tuffaceous Siltstone (7860' - 7940') = claystone present in trace to 30% in dominantly sand formation; light to very light gray; soft to fragile; finely ground up cuttings; clayey to slightly gritty texture; dull, earthy luster; moderately soluble and expansive poor adhesiveness; poor to fair cohesiveness; non calcareous. Sand (7900' - 7980') = overall light to very light gray with individual grains dominantly clear to translucent quartz and volcanic glass, trace to 10% multicolored lithics of medium to dark gray, black; light greenish gray, light gray, orange, rust and pale rose; very fine lower to coarse lower, dominantly fine upper to poor to fair sorting; unconsolidated; trace very light gray ashy tuff; fragile non calcareous; commonly acts as a supporting matrix for loose sands. Sand/ Conglomeratic Sand/ Tuffaceous Sandstone (7980' - 8100') = overall sample is light to very light gray with very light greenish gray secondary hue, individual grains are dominantly clear to translucent quartz and volcanic glass, light green to light to medium greenish gray, medium to dark gray, black, rust, orange and pale rose; very fine lower to trace very coarse upper, dominantly fine upper to medium upper; angular to trace subrounded very coarse, dominantly subangular; poorly sorted; dominantly unconsolidated with trace grayish white to bluish white ashy tuff supported sandstone; fine grain; very fragile to pulverulent; trace visible shards; non calcareous; trace light to medium light gray siltstone/claystone silty to clayey; dull to waxy luster; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (8100' - 8180') = claystone present in trace to 30% in dominantly sand formation; light finely ground up cuttings; clayey to slightly gritty texture; dull, earthy luster; moderately soluble and expansive, poor adhesiveness; poor to fair cohesiveness; non calcareous. CLU STORAGE 2 15 Tuffaceous Claystone/ Tuffaceous Siltstone/ Tuffaceous Sandstone (8180' - 8280') = very light gray to light gray; very soft to soft; slightly to moderately cohesive; nonadhesive; pulverulent, brittle to crumbly in part; no definable cuttings habit or fracture; dull to sub waxy with increased tuff/ clay, dull to slightly sparkly with increasing silt/ sand component; interval grades from an unconsolidated sand to a consolidated sandstone, occasionally grain supported with abundant clay matrix; noncalcareous; no visible porosity; occasional spiky, scale-like and wispy carbonaceous material; race black with brown sub platy carbonaceous shale and earthy carbonaceous material. Carbonaceous Shale (8280' - 8310') = grayish black to black with dark brown hues, brownish black; firm to moderately hard; crumbly to crunchy in part; irregular to hackly fracture, occasionally earthy; tabular to platy cuttings habit; dull to earthy luster; note clayey/ silty cuttings with brownish black carbonaceous lithic fragments, spikes, scale-like detritus; trace ash. Tuffaceous Siltstone/ Claystone (8310' - 8400') = light gray to very light gray with occasional yellowish brown hues; poorly to moderately cohesive; poorly adhesive; soft to slightly firm; fragile, pulverulent to crumbly in part; no definable fracture or cuttings habit; dull to very slightly sparkly in part, rarely earthy in part; slightly sandy to very sandy in places with very fine subrounded quartz; often grain supported with abundant clay fill/ tuffaceous matrix; noncalcareous; no visible porosity; abundant unconsolidated very fine grain quartz sand. Sand (8400' - 8500') = unconsolidated; medium light gray to light gray overall; fine grain; subrounded to rounded, rarely subangular; subdiscoidal to discoidal; moderate to well sorted; occasionally consolidated as a grain supported sandstone with abundant clay fill, often grading to a matrix supported arenaceous sandstone/ tuffaceous siltstone; dominantly milky white to very light gray, opaque quartz; continued interbedded tuffaceous claystone/ siltstone as described above; rare trace tuff/ ash and carbonaceous material. Sand (8500' - 8577') = unconsolidated; light gray to medium light gray overall; lower medium to fine grain, very fine grain; subrounded, moderately well rounded in part; discoidal to subdiscoidal; moderate to well sorted in part; no evidence of cementation or matrix component; note increasing sandy siltstone/ silty claystone towards the base of this interval; tuffaceous; noncalcareous; note absence of dutrital carbonaceous material previously described; trace biotite. CLU STORAGE 2 16 3.2 Sampling Program BOXED WASHED AND DRIED SAMPLES 1 Sets Total: 1 Package of 5 Boxes Each Operator: CINGSA Well Name: CLU Storage 2 Field: Cannery Loop/ Sterling C Pool County: Kenai Borough State: Alaska Company Representatives: Steve Ratcliff, John Nicholson Location: 570’ FNL, 1763’ FEL, Sec. 9 T5N R11W Classification: Gas Storage API #: 50-133-20599-00-00 Permit #: 211135 Rig Name /Type: Nabors 105e/ Land/ Triple Total Depth 8577’ Total Depth Formation: Sterling C Total Depth Date: November 13, 2011 Logging Geologists: Ralph Winkelman, Larry Resch Sample Catchers: Justin Ashar, Justin Rosenblume, Dan Hillegeist Set Type and Purpose Interval Frequency Distribution 0 Washed and Dried Reference Samples 30’ Interval 20’ Interval AOGCC 333 West 7th Ave Ste 100 Anchorage, Alaska 99501 ATTN: Howard Okland 1 Washed and Dried Reference Samples 2731’ – 7756’ 7756’ – 8577’ 30’ Interval 20’ Interval PRA/ CINGSA NOTE: All samples released to Ari Berland, Geologist, PRA/ CINGSA CLU STORAGE 2 17 4 DRILLING DATA 4.1 Daily Activity Summary October 27, 2011 Winkelman and Forrest arrive on location and begin rig up operations. October 28, 2011 Winkelman and Forrest continue rig up operations October 29, 2011 Rig up operations continue. Load 189 joints 5” drill pipe in pipe shed; continue to rig up and orient kelly hose; dress and secure loose wires and hoses on service loop; clean suction and discharge screens on mud pump #1 and #2; function test diverter annular and knife valve; install 4” ball valves on wellhead; stage PBA on skid behind drill line guard; install rig floor camera; build spud mud in pits; rig up hydraulics to ST 80 and function test; test rig gas alarms; rig up drill pipe elevators; weld stops on flow riser torque up bottom break on diverter spool; replace receptacle for derrick house heater at A-leg; tack weld guard plate for rotary table hydraulic motor; pick up 24/189 joints of 5” drill pipe and set back in derrick; run camera cable for pipe shed monitor; drift drill pipe on skate with 3.052” drift; test diverter and surface annular preventer; perform Koomey test; test high/low pit level alarms; pick up and rack back 120 joints 5” drill pipe; service rig; calibrate block height with Baker; continue picking up 5” drill pipe to joint 189; strap drill pipe and tally; pick up and rack back 23 joints HWDP and jars. Currently servicing top drive at report time. October 30, 2011 Continue to service top drive; change out saver sub, grabber die, reset grabber height stops; dress loose wires and hoses on service loop; pick up BHA #1 and 16” surface hole drilling assembly; pressure test standpipe manifold and surface lines to 2500 psi; RIH and tag bottom at 118 ft; drill ahead from 118 ft to 348 ft at 10k wob, 40 rpm, 370-400 gpm; POOH and pick up drill collars and jars; RIH and slide/ rotary drill at 0-10k wob, 0/ 70 rpm, 4k torque, 611 gpm (slide first 30 ft of each stand) from 348 ft to 1652 ft at report time. October 31, 2011 Slide/ rotary drill from 1652 ft to surface casing point at 2731’MD/ 2422’TVD; final parameters 15-16k wob, 0/ 100 rpm, 611 gpm, 1250 psi off bottom pressure, 95k up/ 75k down, 80k rotating; circulate and condition 10,000 strokes at 200 spm, 651 gpm, 1250 psi while reciprocating pipe from 2731 ft to 2620 ft; monitor well— static; short trip to top of HWDP; RIH to 2731 ft; circulate and pump sweep 8900 strokes surface to surface at 200 spm, 1350 psi; monitor well—static; POOH; stand back drill collars; lay down stabilizers, mud motor and gamma tool. Currently on the bank at report time. November 1, 2011 Clean up rig floor; rig up Weatherford casing equipment run 13-3/8” J-55 68.0 # casing per run order; rig down Weatherford equipment; rig up false table for inner drill pipe string; make up sting-in tool and RIH with 5” drill pipe to 2677 ft; tag/ sting into float collar and rig up to circulate with cement line; circulate 2900 strokes bottoms up; pressure test SLB to 3000 psi; pump 40 bbl 10.2 ppg mud push at 210 gpm, 312 bbl 12.0 ppg lead, 60 bbls 15.4 ppg tail at 210 gpm; displace 45 bbls with rig mud pump; cement in place at 1900 hrs; pull up and un-sting from float 30 ft; circulate 30 ft above float 5000 stks at 210 gpm, 200 psi; pump down wiper ball at 900 stks, 210 gpm, 500 psi; clear rig floor of un-needed tools. Currently POOH with inner string 5” drill pipe at report time. CLU STORAGE 2 18 November 2, 2011 Continue to POOH with 5” inner string; lay down BHA and sting-in tool; change out elevators; pull 116k on 13- 3/8” string; remove spacer plate, clear and clean rig floor; nipple down annular and diverter spool; cut and dress 20” conductor—cut joint total 24.55 ft; set well head, orient, set seals and test; set double gate on well head; install annular preventer and torque both; replace air boot on annular; install choke, kill and accumulator hoses; install flow riser and secure stack; change top drive wash pipe swivel; function test BOP’s; install test plug; fill stack with water and purge air from choke manifold; make up BOP test assembly. Currently initiating BOP tests at report time. November 3, 2011 Test BOP’s; rig down test tools; pressure test casing/ shoe; fill casing with 19 bbls and air out; test casing to 2000 psi for 30 minutes; re-calibrate pump pressure gages; blow down lines and rig down test equipment; pick up BHA #2 (12-1/4” bit assembly); RIH to top of HWDP; pick up 25 joints 5” drill pipe; continue to RIH to 2675 ft; tag float shoe at 2719 ft; drill out shoe track and 20 ft new formation to 2751 ft; encountered cement below shoe; monitor well 15 minutes—static; displace spud mud to 9.0 ppg Flow-Pro mud at 325 gpm, 700 psi; perform FIT to 15.0ppg EMW; drill ahead to 2965 ft; change out mud pump #2 bleeder valve while rotating, reciprocating and circulating at 346 gpm, 850 psi; drill ahead from 2695 ft to 3450 ft at report time. November 4, 2011 Drill ahead from 3450 ft to 5392 ft at 15-19k wob, 130 rpm, 9-14k torque, 609 gpm, 1800 psi; pump 32 bbl high viscosity sweep; circulate and condition; circulate bottoms up 10100 stks; back ream out from 5392 ft to 3383 ft at report time at 100 rpm, 8600 torque, 600 gpm, 1820 psi, rotating weight 110k, p/u 131k, s/o 94k. November 5, 2011 Continue back reaming from 3383 ft to 2712 ft at 100 rpm, 350 gpm, 650 psi; service top drive; circulate bottoms up 4500 strokes, 602 gpm, 1500 psi; run in hole from 2712 ft to 5392 ft; bump 40 bbls nut plug sweep at 250 gpm; downlink Baker tool; was down to 5392 ft—no fill; drill ahead from 5392 ft to 6733 ft at 15-17k wob, 130 rpm, 10-15k torque, 606 gpm, 2250 psi; downlink to close tool at 6733 ft and circulate bottoms up at 11800 strokes, 612 gpm, 2330 psi; down link to open tool; continue drilling ahead from 6733 ft to 6842 ft; downlink and start final curve at 6843 ft at 12/ 15k wob, 130 rpm, 17/18k torque, 609 gpm, 2350 psi. Currently drilling ahead at 7027 ft at report time. November 6, 2011 Drill ahead from 7026 ft to 7307 ft; circulate and condition hole—circulate bottoms up at 609 gpm, 2300 psi, 130 rpm, reciprocate pipe; get sand returns; drill ahead from 7307 ft to 7756 ft TD casing point; CANRIG records 900 units gas maximum; circulate bottoms up until hole clean at 12000 strokes; downlink survey; begin to loose returns; decrease pump rate to 150 gpm, 50 rpm to maintain lost circulation; pump 40 bbls LCM pill; monitor well; POOH from 7756 ft to 7462 ft tight spot; pulled 25k over165k/ 93k; drop first ball at 1224 hrs; let ball fall and attempt to open well commander at 3400 psi; shut in pumps; weight pressure release; pump 700 strokes at 168 gpm, 230 psi; drop second ball at 1420 hrs; let fall for 5 minutes; pressure up; attempt to isolate BHA with pumps isolated pressure to 4600 psi with test pump; work pipe and rotate 45 rpm, 165k/ 93k during process; continue POOH wet from 7462 ft to 5775 ft at 60 rpm, 165-185k up/ 95k down; strap pipe while POOH; Current bit depth 5775 ft at report time. CLU STORAGE 2 19 November 7, 2011 Continue to back ream out of hole from 5775 ft to 5201 ft with no pump (string plugged); tight from 5630 ft to 5650 ft; pull out of hole on elevators from 5201 ft to HWDP; monitor well at shoe; set back HWDP; lay down jars; pick up new jars; attempt to recover well commander balls from jars; string drains below jars; lay down BHA #2; change out jars (well commander balls inside); lush smart tools with fresh water through cement line at 63 spm, 205 gpm, 185 psi, 344 strokes; rig down/ blow down lines; stand back collars; down load third party tools, lay down same; pick up BHA #3 cleanout assembly; trip in hole to 2736 ft; fill pipe with 230 stks; 60 bbls displacement, 358 gpm, 55/ 55 spm, 208 psi, 3800 stks, 9.0 ppg in/ 9.1 ppg out; service topdrive and crown; continue trip in hole from 2736 ft to 5543 ft; fill pipe 200 stks every 20 stands; set down 25k at 5543 ft; wash and ream at 5543 ft 60 rpm, 15k torque, 70 spm, 222 gpm, 467 psi. Currently working down from 5543 ft at report time. November 8, 2011 Continue to wash and ream from 5543 ft to 5703 ft at 60 rpm, 222 gpm, 450 psi; continue to wash down from 5703 ft and tag bottom at 7756 ft (no fill); circulate and condition; lost circulation; spot 100 bbls of 100 #/bbl LCM pill; fill backside (162 bbl loss) pooh 10 stands to 6924 ft; monitor well; circulate bottoms up condition hole and mud at 350 gpm, 200 psi; spot lube pill (225 bbls with 3.5% lube); continue to POOH from 6924 ft to 2512 ft; monitor well at shoe; continue trip out of hole from 2544 ft to 823 ft; lay down 2 joints; stack back HWDP; lay down BHA #3 and clear rig floor; drain stack and blow down all lines; pull wear ring and flush stack; set test plug; change rams to 9-5/8” pipe rams; test pipe rams to 250/ 2500 psi for 5 minutes; pick up third party tools and prepare to run 9-5/8” 40# L-80 BTC casing; fill hole 9 bbls; change out bales; rig up fill up tool; rig up stabbing board; pick up 54 stabilizers. Preparations continue for running 9-5/8” casing at report time. November 9, 2011 Rig up 9 5/8” casing handling equipment; Pick up shoe track (Baker Lock), check floats, ok; Pick up 9.625” casing as per running order to 2698’ (shoe 2717’); circulate and condition at 2698’; break circulation casing volume 2700 strokes; stage up 350 GPM at 370 PSI; CANRIG records 68 units gas maximum at shoe; run casing, pick up casing from 2698’ to 6034’; fill casing with 35 bbls LCM Pill; run casing 9 5/8” from 6034’ to 7680’; drill string 220K up and 125K down; lost returns at 6074’; lost 40 bbls for each 10 joints; tight hole at 7640’; pump down with fill up tool at 126 GPM at 450 PSI; hole packed off at 7681’; then was bled to 1300 PSI; while running casing attempt to bleed off to release the fill tool; back off bleeding PSI from casing; rig down fill up tool; rig up circulating head and lines; run casing work pipe from 7625’ to 7675’; 275K up and 95K down; pumping 42 GPM at 270 PSI; partial returns; 30 min loss rate of 84 BPH; run casing and rig down circulating lines; make up joint #188; rig up circulating head and lines; work pipe and build LCM Pill; 265K up and 107K down; no pumps CLU STORAGE 2 20 November 10, 2011 Run casing work pipe from 7675’ to 7718’; build and pump 40 bbls of 100 ppb LCM Pill; 67 GPM at 475 PSI; run casing by making up land joint and hanger; wash down from 7718’ and land hanger; 9-5/8” shoe at 7746’; pick up weight 210K and slack off weight 110K; build volume weight; stage pump to 105 GPM at 409 PSI; circulate and condition mud; rig down Weatherford casing equipment; prepare and rig up for cement job; rig up cement head; working as directed by operator; continued to circulate 101 GPM at 280 PSI; pre-job safety meeting; Schlumberger computer issues; tour loss 10 bbls; primary cementing; test lines to 1000/4000 PSI; pump 36 bbls mud; push 5 bpm at 500 PSI; Schlumberger pump first stage with 236 bbls of 12# cement lead and 48 bbls 14# tail at 5.5 bpm at 660/800 PSI; 11% returns; primary cementing drop plug and chase with 9.0 # mud at 45/46 spm and 292 gpm at 313 PSI; 7% returns; final casing pressure at 1030 PSI; bump plug 7612 strokes at 900 psi; cement in place at 15:50 HRS; bleed off and check floats; load closing plug; open stage collar with 2600 PSI; primary cementing circulation casing volume 3480’ with 66 spm and 212 gpm at 280 PSI and 265 bbls; Schlumberger batch cement primary cementing pump; 36 bbls mud push; Schlumberger pumps second stage cement 12.0# 212 bbls at 5 bpm at 650 PSI; drop closing plug; rig displace with 9.0 ppg mud 292 gpm at 360/620 PSI; bump plug 3440 strokes 2100 PSI cement in place at 19:13 HRS; hold 5 min; bleed PSI; primary cementing rig down cement head; X-O adapter and land joint; flush same; lower down landing joint; drain and flush stack; wash rig floor; install wellheads and continue to flush stack and well head; pick up pack off running tools; install pack off; run I lock down screws; test to 3000 PSI for 15 min; verified by company man; rig down test equipment; change rams with 5x7’ variable rams; open blind ram doors and flush clean; lay down 3rd party tools; rig down 350T elevators; rig up zip line. November 11, 2011 Rig up and rig down to run casing; rig down 350T elevators; change out long bails; rig down stabbing board; lay down cement head and cross-over; lay down swage and single joint elevators; blow down a cement line; clear floor; service top drive; change out top drive saver sub; service top drive; test BOPs; pressure test ram body and 5”x7” variable rams with 5”x7” test joints; 250 PSI low; 2500 PSI high; replaced seal on plug; lay down test tool; pull test plug; install wear ring; 9-1/8” inside diameter and 13-3/8” outside diameter; blow down choke manifold, kill and choke lines; pick up BHA; stage tools on the rig floor; pick up BHA #4; orient mud motor with MWD; plug in and verify tools check communications; load nuclear sources; pick up non-magnetic drill collar and well commander; trip in hole with heavy weight drill pipe to 953’; pick up 21 joints of drill pipe to 1623’ 67K/62K; cut drilling line and slip 200’; inspect brass tool orientation fill pipe; pump 54/50/ spm and 330 gpm at 650 PSI; MWD check pulse and readings 850 strokes; calibrate mud depth decoder; trip in hole with stands; drill pipe to 3939’ 95K up and 73K down. November 12, 2011 Continue trip in hole from 3939 ft to 3470 ft; wash from 3470 ft to top of DV collar at 3483 ft; drilling DV collar to 3485 ft at 323 gpm, 950 psi, 2-6k wob, 50 rpm; wash and ream from 3483 ft with hard cement from 3505 ft tp 3730 ft; wash from 3730 ft to 3916 ft (clean); circulate and condition hole, circulate bottoms up; pressure test 9-5/8” casing to 3000 psi for 30 minutes; blow down top drive and kill line; continue to run in hole on elevators from 3871 ft to 7650 ft; fill drill pipe and wash from 7650 ft to tag cement at 7656 ft/ float collar at 7662 ft; drill float collar, 80 ft cement and float shoe at 7746 ft at 5-10k wob, 60-65 rpm, 400 gpm, 1200 psi; wash and ream from 7746 ft to 7756 ft; drill 20 ft new formation to 7776 ft with no mud losses; circulate bottoms up at 7776 ft at 400 gpm, 1200 psi, 46 rpm, 120k rot, 125k p/u, 115k s/o; pull into casing and perform LOT---pump ½ bpm and record pressure each ½ bbl: 3 bbls broke down at 467 psi, 200 to 92 psi in 5 minutes, EMW = 11.2 ppg; pump 38 bbl 9.4 ppg pill at 7746 ft at 409 gpm, 1130 psi; chase with 1700 stks, slow to 409 gpm until clear of tools; perform second FIT using test pump at ½ bpm to 300 psi = 10.3 ppg EMW. Drill ahead from 7776 ft to 7938 ft at 15-18k wob, 70-90 rpm, rotating weight 120k, ECD 9.48-10.13 ppg; slide from 7938 ft to 7963 ft; rotary drill from 7963 ft to 8512 ft at report time. CLU STORAGE 2 21 November 13, 2011 Drill ahead from 8512 ft to TD at 8577 ft 10-12k wob, 90 rpm, 390 gpm, 1350 psi, buckram every connection; p/u 180k, s/o 80k, rot 120k; circulate and condition at 8577 ft, 410 gpm, 1500 psi, 60 rpm; begin to pull out of hole from 8577 ft to 8085 ft; tight hole encountered at 8085 ft, pulled 25k over; back ream from 8085 ft to shoe at 7746 ft; circulate hole clean; pump dry job; drop 2-7/8” drill pipe drift; blow down top drive; continue trip out of hole from 7780 ft to 953 ft; Lay down BHA #4; lay down HWDP, jars, NMDC, well commander; unload nuclear sources and download MWD; lay down remaining BHA components; pick up CBL tools; currently running in hole with Wireline tools at report time. November 14, 2011 Run 9-5/8” cement bond log; could not get below 7362 ft; complete Wireline work, lay down tool, retrieve junk in logging tool centralizer; pick up BHA #4 and prepare for cleanout run; trip in hole to 3270 ft; fill pipe and break circulation; blow down topdrive; continue RIH from 3270 ft to 8220 ft; wash and ream from 8220 ft to 8577 ft; circulate and condition at 311 gpm, 612 psi; pump out of hole 8577 ft to casing shoe; pump dry job; service topdrive, crown, blocks; POOH on elevators from 7746 ft to 3080 ft at report time. November 15, 2011 Continue trip out of hole; lay down 11 joints HWDP and jars; lay down 8-1/2” BHA; rig up Weatherford to run 7” 26# L-80 VAM top liner; make up shoe track and Baker Lock 2 connections; run 23 joints with centralizer on each joint; fill pipe and check floats—OK; continue trip in hole slow with 7” liner on 5” drill pipe; fill pipe every 20 stands; run in hole to 7675 ft at 155k/ 72k; make up cement head, 10 ft pup, 1 joint; pull and lay down same; circulate and condition to clear pipe at 266 gpm, 300 psi; pump 2021 strokes; 152k p/u, 83k s/o rotate 10 rpm, 9-10k torque, rot wt 112k; continue trip in hole with 7” liner on 5” drill pipe from 7675 ft to 8536 ft; pick up cement head; tag TD at 8577 ft, 28.5 ft down on single; pick up to 165k plus 2 ft; rig up lines for cement job; circulate bottoms up at 209 gpm, 570 psi; attempt to move pipe and rotate—no go. Currently preparing to pressure test lines at report time. November 16, 2011 Cement operations continue; pressure test cement lines 1000 psi low/ 4800 psi high; pump 32 bbl 11.5 ppg spacer at 8 bpm followed by 42 bbl Flexstone 14 ppg cement; flush lines back to pits; displace 169 bbls; bump plug to 2200 psi shut in bleed pressure, confirm floats held; pressure up to 2600 psi with Schlumberger and set hanger set down weight; confirm pick up with of 65k;pressure up to 3900 psi to release running tool; bleed pressure to 500 psi; pick up and confirm free; pick up 10 ft and set packer while holding 500 psi; pick up 30 ft to confirm packer release; circulate above liner; pump dry job; prepare to POOH with 7” running tool; lay down cement head; POOH to surface; prepare to test BOP’s. Currently testing BOP’s at report time. November 17, 2011 Complete BOP tests; pull test tool; drain stack; blow down kill line, choke line and choke manifold; rig down testing equipment; pick up Baker 7” polishing mill; run in hole to 7569 ft; break circulation; wash and ream to liner top at 7603 ft; polish inside of liner top from 7603 ft to 7611 ft; tag liner top with no go at 7603 ft; p/u 154k, s/o 76k, rot 112k;circulate and condition for casing test; test 9-5/8” casing at 2500 psi for 30 minutes—OK; pump dry job; blow down top drive and kill line; lay down 5” drill pipe while inspecting tool face, threads, hard band. Currently on the bank at report time. November 18, 2011 Lay down Baker polishing mill; prepare to run 7” tubing; change to long bales and 7” elevators; pick up Baker seal assembly; trip in hole with 7” 26# tieback string, running slowly due to thick mud running out the top of the 7”; run in hole to 7430 ft; make up SSSV sub assembly; pick up SSSV control line spool and rig up to run line; continue to run in hole to no go at 7604 ft; set down 15k; space out with hanger; rig up circulating assembly; blow through line to ensure clear. Currently running control line through hanger at report time. CANRIG released from responsibilities at 0600 hrs November 19, 2011. CLU STORAGE 2 22 4.2 Surveys Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 0 0.00 0.00 0.0 0.00 0.00 0.00 0 206 0.46 14.58 206.00 0.80 0.21 -0.44 0.22 294 0.28 13.13 294.00 1.35 0.35 -0.74 0.20 383 0.66 42.48 382.99 1.94 0.74 -1.29 0.49 472 0.57 11.07 471.99 2.75 1.17 -1.95 0.39 563 0.71 46.03 562.98 3.59 1.67 -2.67 0.45 652 0.69 24.98 651.98 4.46 2.29 -3.53 0.29 741 0.51 336.03 740.97 5.31 2.35 -3.85 0.59 831 2.42 236.53 830.94 4.62 0.61 -1.98 2.84 928 6.27 234.38 927.65 0.41 -5.41 5.03 3.97 1023 9.75 233.66 1021.71 -7.38 -16.11 17.59 3.66 1118 12.14 236.69 1114.97 -17.64 -30.94 34.83 2.59 1214 14.13 244.89 1208.46 -28.15 -49.99 56.17 2.84 1311 16.03 250.10 1302.12 -37.74 -73.31 81.30 2.40 1407 17.90 251.18 1393.94 -47.01 -99.74 109.29 1.98 1503 20.57 250.29 1484.58 -57.46 -129.58 140.90 2.80 1597 23.44 250.30 1571.72 -69.33 -162.74 176.10 3.05 1693 25.65 250.04 1659.04 -82.87 -200.25 215.95 2.30 1789 28.64 249.87 1744.45 -97.88 -241.39 259.70 3.12 1885 31.72 249.47 1827.43 -114.65 -286.64 307.90 3.22 1980 34.96 251.51 1906.79 -132.05 -335.85 360.07 3.61 2076 38.25 252.03 1983.84 -149.94 -390.22 417.31 3.44 2172 41.08 251.86 2057.74 -168.93 -448.47 478.58 2.95 2267 43.93 251.79 2127.76 -188.95 -509.45 542.75 3.00 2361 46.66 251.96 2193.88 -209.73 -572.94 609.56 2.91 2457 50.07 251.84 2257.65 -232.02 -641.13 681.29 3.55 2553 52.67 250.81 2317.58 -256.05 -712.16 756.27 2.83 2649 54.70 250.25 2374.43 -281.83 -785.09 833.58 2.17 2767 55.81 251.25 2441.68 -313.79 -876.62 930.49 1.17 2863 57.30 250.30 2494.59 -340.17 -952.25 1010.56 1.76 2958 57.33 249.38 2545.90 -367.73 -1027.31 1090.44 0.82 3055 57.28 248.80 2598.29 -396.86 -1103.57 1171.94 0.51 3149 57.48 248.88 2648.96 -425.44 -1177.40 1250.96 0.22 3245 57.31 247.56 2700.69 -455.45 -1252.50 1331.62 1.17 3341 57.52 248.50 2752.40 -485.71 -1327.51 1412.28 0.85 3437 57.32 247.55 2804.09 -515.98 -1402.53 1492.94 0.86 3533 57.46 248.66 2855.83 -546.13 -1477.56 1573.58 0.98 CLU STORAGE 2 23 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 3628 57.44 247.78 2906.94 -575.84 -1551.92 1653.45 0.78 3724 57.45 248.58 2958.60 -605.92 -1627.04 1734.15 1.70 3820 57.60 248.74 3010.15 -635.39 -1702.47 1814.97 0.21 3915 57.65 248.38 3061.02 -664.72 -1777.15 1895.02 0.32 4010 57.67 249.65 3111.84 -693.46 -1852.09 1975.15 1.13 4105 57.27 249.20 3162.92 -721.61 -1927.08 2055.14 0.58 4201 57.33 248.78 3214.79 -750.57 -2002.49 2135.78 0.37 4297 57.54 248.92 3266.46 -779.76 -2077.95 2216.54 0.25 4393 57.39 249.36 3318.09 -808.58 -2153.58 2297.34 0.42 4488 57.47 249.61 3369.23 -836.64 -2228.56 2377.30 0.24 4584 57.54 250.26 3420.80 -864.42 -2304.61 2458.20 0.58 4680 57.42 250.53 3472.41 -891.58 -2380.87 2539.10 0.27 4775 57.43 250.20 3523.56 -918.48 -2456.27 2619.11 0.29 4869 57.47 249.81 3574.14 -945.58 -2530.73 2698.27 0.35 4966 57.43 249.84 3626.33 -973.77 -2607.47 2779.96 0.05 5061 57.44 250.08 3677.46 -1001.21 -2682.69 2859.95 0.21 5157 57.42 251.10 3729.14 -1028.10 -2758.99 2940.81 0.90 5254 57.40 251.03 3781.39 -1054.62 -2836.30 3022.52 0.06 5348 57.44 250.62 3832.00 -1080.63 -2911.11 3101.70 0.37 5445 57.24 249.69 3884.35 -1108.35 -2987.92 3138.30 0.83 5541 57.21 249.38 3936.32 -1136.58 -3063.55 3263.92 0.27 5637 57.23 248.99 3988.30 -1165.26 -3138.99 3344.51 0.34 5733 57.44 248.49 4040.11 -1194.56 -3214.31 3425.16 0.49 5829 57.44 247.94 4091.78 -1224.59 -3289.44 3505.86 0.48 5925 57.43 248.21 4143.45 -1254.80 -3364.49 3586.54 0.24 6021 57.44 248.41 4195.12 -1284.70 -3439.67 3667.25 0.18 6115 57.42 249.03 4245.72 -1313.45 -3513.49 3746.30 0.56 6211 57.37 249.39 4297.45 -1342.16 -3589.09 3827.05 0.32 6308 57.40 248.53 4349.74 -1371.49 -3665.35 3908.61 0.75 6403 57.45 249.23 4400.89 -1400.33 -3740.02 3988.52 0.62 6498 57.40 249.41 4452.03 -1428.61 -3814.92 4068.46 0.17 6594 57.42 248.41 4503.74 -1457.71 -3890.39 4149.20 0.88 6690 57.44 249.37 4555.42 -1486.85 -3965.86 4229.95 0.84 6785 57.48 248.69 4606.52 -1515.51 -4040.64 4309.90 0.60 6881 58.37 249.68 4657.50 -1544.41 -4116.68 4391.12 1.27 6977 60.35 251.76 4706.43 -1571.66 -4194.64 4473.67 2.78 7073 62.69 253.52 4752.21 -1596.83 -4275.17 4558.04 2.92 7169 65.21 255.59 4794.37 -1619.77 -4358.29 4644.21 3.26 7265 68.31 258.07 4832.25 -1639.85 -4444.17 4732.13 4.01 CLU STORAGE 2 24 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 7361 71.76 259.07 4865.02 -1657.72 -4532.60 4821.82 3.72 7457 74.22 260.37 4893.10 -1674.09 -4622.92 4912.85 2.87 7552 76.85 260.72 4916.83 -1689.20 -4713.65 5003.89 2.79 7648 79.06 260.40 4936.86 -1704.60 -4806.26 5096.82 2.33 7716 79.37 260.50 4949.59 -1715.68 -4872.13 5162.95 0.48 7783 78.42 260.08 4962.49 -1726.77 -4936.93 5228.07 1.55 7879 78.58 259.92 4981.63 -1743.10 -5029.57 5321.30 0.23 7974 79.27 261.32 4999.88 -1758.30 -5121.56 5413.56 1.62 8071 79.40 261.23 5017.83 -1772.76 -5215.78 5507.74 0.16 8165 79.64 261.33 5034.93 -1786.77 -5307.14 5599.05 0.28 8262 79.75 260.77 5052.28 -1801.62 -5401.41 5693.39 0.58 8356 79.83 261.13 5068.94 -1816.17 -5492.77 5784.86 0.39 8452 79.15 260.75 5086.46 -1831.03 -5585.98 5878.19 0.81 8516 78.96 260.70 5098.61 -1841.16 -5648.00 5940.36 0.31 8577** 78.96 260.70 5110.29 -1850.83 -5707.08 5999.60 0.0 **Projected CL U S T O R A G E 2 25 4. 3 B i t R e c o r d BI T NO . SI Z E TY P E S / N JE T S / TF A IN O U T F T H R S AV E RO P Ft / H R CONDITION 1 1 6 ” H C C V M 1 5 1 9 8 9 2 9 3 x 1 8 , 1 6 1 1 8 ’ 2 7 3 1 2 6 1 3 1 5 . 5 1 6 8 . 5 1 - 2 - W T - A - E - 2 - N O - T D 2 1 2 - 1 / 4 ” H C C Q D 6 0 5 X 7 0 2 2 2 8 7 3 x 1 1 , 4 x 1 4 2 7 3 1 ’ 77 5 6 5 0 2 5 3 4 . 5 1 4 5 . 7 1 - 1 - N O - A - X - I - N O - T D 2R R 1 2 - 1 / 4 ” H C C Q D 6 0 5 X 7 0 2 2 2 8 7 3 x 1 1 , 4 x 1 4 7 7 5 6 ’ 7 7 5 6 ’ 0 0 0 C l e a n o u t , s p o t L C M r u n 3 8 - 1 / 2 ” H C C H C R 5 0 3 Z X 7 1 1 4 3 2 8 3 x 1 3 , 3 x 1 4 7 7 5 6 ’ 8 5 7 7 8 2 1 ’ 6 . 5 1 2 6 . 3 1 - 3 - B T - G - X - I - L T - T D 3R R 8 - 1 / 2 ” H C C H C R 5 0 3 Z X 7 1 1 4 3 2 8 3 x 1 3 , 3 x 1 4 8 5 7 7 8 5 7 7 0 0 0 C l e a n o u t CL U S T O R A G E 2 26 4. 4 M u d R e c o r d Co n t r a c t o r : M I S w a c o Mu d T y p e : G e l / G e l e x S p u d M u d 1 1 8 ’ – 2 7 5 1 ’ ; F l o P r o 2 7 5 1 ’ – 8 5 7 7 ’ ’ Da t e D e p t h MW (p p g ) VI S (s / q t ) PV Y P G e l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) MB T p H Cl (ml/l) Ca (ml/l) 10 / 2 9 / 1 1 1 1 7 8 . 5 4 1 9 7 4 / 5 / 7 1 4 2 / 2 . 2 / 9 8 0 2 2 1 0 . 0 4 0 0 4 0 10 / 3 0 / 1 1 1 5 5 6 9 . 0 5 0 8 1 8 1 0 / 1 2 / 1 5 1 5 2 / 4 / 9 6 0 2 5 9 . 4 5 0 0 4 0 10 / 3 1 / 1 1 2 7 3 1 9 . 0 5 2 1 4 1 6 9 / 1 6 / 2 2 1 2 2 / 4 / 9 6 0 2 5 9 . 7 5 0 0 4 0 11 / 0 1 / 1 1 2 7 3 1 9 . 0 4 9 1 3 1 6 1 0 / 1 2 / 1 6 1 1 . 8 2 / 4 / 9 6 0 2 5 9 . 6 5 0 0 4 0 11 / 0 2 / 1 1 2 7 3 1 9 . 0 4 8 1 4 1 4 1 0 / 1 2 / 1 5 1 1 . 2 2 / 4 / 9 6 0 2 2 9 . 6 5 0 0 4 0 11 / 0 3 / 1 1 3 4 5 0 9 . 1 4 4 1 1 1 3 7 / 8 / 8 6 . 2 2 / 4 2 / 9 5 0 . 8 0 9 . 4 2 2 5 0 0 2 6 0 11 / 0 4 / 1 1 5 3 9 2 9 . 2 4 5 1 5 2 4 9 / 1 3 / 1 5 6 1 / 5 2 / 9 3 1 . 2 7 9 . 4 2 5 0 0 0 2 0 0 11 / 0 5 / 1 1 6 8 9 3 9 . 3 4 9 1 4 2 7 1 3 / 2 2 / 2 3 6 . 6 1 / 6 3 / 9 1 1 1 2 9 . 3 2 6 0 0 0 2 6 0 11 / 0 6 / 1 1 7 7 5 6 9 . 1 4 0 1 0 1 6 6 / 1 0 / 1 2 7 . 6 1 / 5 2 / 9 3 0 . 2 1 2 9 . 2 2 7 0 0 0 2 0 0 11 / 0 7 / 1 1 7 7 5 6 9 . 1 4 3 1 1 1 5 6 / 1 0 / 1 2 7 . 8 1 / 5 2 / 9 3 0 . 1 1 2 9 . 2 2 6 5 0 0 2 0 0 11 / 0 8 / 1 1 7 7 5 6 9 . 1 4 6 1 2 1 5 6 / 8 / 1 1 7 . 8 1 / 5 2 / 9 3 0 . 1 1 2 9 . 0 2 6 0 0 0 2 0 0 11 / 0 9 / 1 1 7 7 5 6 9 . 0 4 4 1 2 1 4 7 / 9 / 1 2 8 1 / 4 . 5 2 / 9 4 0 . 1 1 2 8 . 8 2 5 0 0 0 2 0 0 11 / 1 0 / 1 1 7 7 5 6 9 . 3 4 4 1 0 1 4 5 / 7 / 8 9 . 8 1 / 5 1 / 9 4 0 . 2 8 9 . 0 2 0 0 0 0 1 0 0 11 / 1 1 / 1 1 7 7 5 6 9 . 2 5 8 1 2 2 0 1 2 / 1 6 / 1 8 6 1 / 4 1 / 9 5 0 . 1 8 9 . 0 2 0 0 0 0 1 8 0 11 / 1 2 / 1 1 8 3 2 1 9 . 1 4 5 1 0 1 7 6 / 9 / 1 1 6 . 8 1 / 4 . 5 2 / 9 4 0 . 5 8 1 0 . 5 2 1 0 0 0 5 5 0 11 / 1 3 / 1 1 8 5 7 7 9 . 1 4 6 1 0 1 6 5 / 8 / 9 7 1 / 4 . 5 2 / 9 4 0 . 2 5 8 1 0 . 2 2 1 0 0 0 4 8 0 11 / 1 4 / 1 1 8 5 7 7 9 . 1 4 7 1 1 1 6 5 / 8 / 9 7 . 2 1 / 4 . 5 1 / 9 5 0 . 2 5 8 . 5 1 0 . 0 2 0 0 0 0 5 2 0 11 / 1 5 / 1 1 8 5 7 7 9 . 1 4 8 1 0 1 7 5 / 8 / 1 0 7 . 4 1 / 4 . 5 1 / 9 5 0 . 2 8 . 5 9 . 9 2 0 0 0 0 4 8 0 11 / 1 6 / 1 1 8 5 7 7 9 . 1 4 6 1 1 1 5 6 / 8 / 9 7 . 4 1 / 5 1 / 9 4 0 . 2 5 1 0 9 . 7 2 0 0 0 0 4 0 0 11 / 1 7 / 1 1 8 5 7 7 9 . 1 4 6 1 1 1 5 6 / 8 / 8 7 . 5 1 / 4 . 5 1 / 9 5 0 . 2 5 1 0 9 . 8 1 9 0 0 0 4 4 0 11 / 1 8 / 1 1 8 5 7 7 Ab b r e v i a t i o n s : MW = M u d W e i g h t V I S = F u n n e l V i s c o s i t y PV = P l a s t i c V i s c o s i t y Y P = Y i e l d P o i n t G e l s = G e l S t r e n g t h F L = W a t e r o r F i l t r a t e Lo s s F C = F i l t e r C a k e O / W = O i l t o W a t e r r a t i o S o l s = S o l i d s S d = S a n d c o n t e n t M B T = M e t h y l e n e B l u e A l k , P m = A l k a l i n i t y , M u d pH = A c i d i t y / B a s i c i t y C l = C h l o r i d e s C a = H a r d n e s s C a l c i u m n r = N o t R e c o r d e d CL U S T O R A G E 2 27 4. 5 D r i l l i n g P r o g r e s s C h a r t CL U S T O R A G E 2 28 5 D A I L Y R E P O R T S t CLU STORAGE 2 50 CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson, Steve Ratcliff DATE October 29, 2011 DEPTH 118' PRESENT OPERATION P/U HWDP TIME 2359 hrs YESTERDAY 118' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 118' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" HCC VM1 5198929 3x18, 16 cj/ 0.942 118' 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 118/ 118 MW 8.5 VIS 41 PV 9 YP 7 FL 4/5/7 Gels 14 CL- 400 FC 2 SOL 2.2 SD OIL /98 MBL 22 pH 10.0 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG n/a PENTANE (C-5) @ @ HYDROCARBON SHOWS No footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No footage drilled this period. DAILY ACTIVITY SUMMARY October 29, 2011 Rig up operations continue. Load 189 joints 5” drill pipe in pipe shed; continue to rig up and orient kelly hose; dress and secure loose wires and hoses on service loop; clean suction and discharge screens on mud pump #1 and #2; function test diverter annular and knife valve; install 4” ball valves on wellhead; stage PBA on skid behind drill line guard; install rig floor camera; build spud mud in pits; rig up hydraulics to ST 80 and function test; test rig gas alarms; rig up drill pipe elevators; weld stops on flow riser torque up bottom break on diverter spool; replace receptacle for derrick house heater at A-leg; tack weld guard plate for rotary table hydraulic motor; pick up 24/189 joints of 5” drill pipe and set back in derrick; run camera cable for pipe shed monitor; drift drill pipe on skate with 3.052” drift; test diverter and surface annular preventer; perform Koomey test; test high/low pit level alarms; pick up and rack back 120 joints 5” drill pipe; service rig; calibrate block height with Baker; continue picking up 5” drill pipe to joint 189; strap drill pipe and tally; pick up and rack back 23 joints HWDP and jars. Currently servicing top drive at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch__ DAILY COST $2427.00 REPORT BY Larry Resch CINGSA Cannery Loop/Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson, DATE Oct 30, 2011 DEPTH 1652' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 118' 24 HOUR FOOTAGE 1534' CASING INFORMATION 20" @ 118' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 206' 0.46 14.58 206.00' 472' 0.57 11.07 471.99' 831' 2.42 236.53 830.94' 1214' 14.13 244.89 1208.46' 1597' 23.44 250.30 1571.71' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" HCC VM1 5198929 3X18, 16 cj/ 0..924 118' 1534' 8.7 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 394.7 @ 1002 35.0 @ 1138 201.2 164.3 FT/HR SURFACE TORQUE 22446 @ 1590 1 @ 1582 1114.3 1651.9 FT-LBS WEIGHT ON BIT 37 @ 1466 0 @ 12.4 0.18661 KLBS ROTARY RPM 73 @ 701 @ 37.5 69 RPM PUMP PRESSURE 1372 @ 1552 417 @ 206 858.1 1062.2 PSI DRILLING MUD REPORT DEPTH 1556/ 1544 MW 9.0 VIS 50 PV 8 YP 18 GELS 10/12/15 FL 15 CL- 500 FC 2 SOL 4 SD OIL /96 MBT 25 pH 9.4 Ca+ 10 KCl MWD SUMMARY INTERVAL 118' TO Current TOOLS Rotary Steerable 1.3 degrees, MWD Gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 36 @ 1204' 0 @ 7.4 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 7248 @ 1204' 34 @ 572' 1554.5 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 15-20u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No samples taken while drilling surface hole. PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY October 30, 2011 Continue to service top drive; change out saver sub, grabber die, reset grabber height stops; dress loose wires and hoses on service loop; pick up BHA #1 and 16” surface hole drilling assembly; pressure test standpipe manifold and surface lines to 2500 psi; RIH and tag bottom at 118 ft; drill ahead from 118 ft to 348 ft at 10k wob, 40 rpm, 370-400 gpm; POOH and pick up drill collars and jars; RIH and slide/ rotary drill at 0-10k wob, 0/ 70 rpm, 4k torque, 611 gpm (slide first 30 ft of each stand) from 348 ft to 1652 ft at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch___ DAILY COST $2427.00 REPORT BY Larry Resch CINGSA Cannery Loop/Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Oct 31, 2011 DEPTH 2731' PRESENT OPERATION On the bank TIME 2359 hrs YESTERDAY 1534' 24 HOUR FOOTAGE 1197' CASING INFORMATION 20" @ 118' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1789' 28.64 249.87 1744.45' 1980' 34.96 251.51 1906.78' 2172' 41.08 251.86 2057.74' 2457' 50.07 251.84 2257.66' 2649' 54.70 250.25 2374.44' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" HCC VM1 5198929 3x18, 16cj/ 0.924 118' 2731' 2613' 15.5 Csg PT DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 506.3 @ 2302' 28.8 @ 1786' 189.0 90.2' FT/HR SURFACE TORQUE 22446 @ 1590' 0 @ 1275.0 0.0 FT-LBS WEIGHT ON BIT 37 @ 2712' 0 @ 14.5 35.1 KLBS ROTARY RPM 107 @ 2595' 0 @ 23.3 0.0 RPM PUMP PRESSURE 1372 @ 1552.' 917 @ 1537' 1138.1 1126.3 PSI DRILLING MUD REPORT DEPTH 2731/ 2422 MW 9.0 VIS 52 PV 14 YP 16 GELS 9/16/22 FL 12 CL- 500 FC 2 SOL 4 SD OIL /96 MBT 25 pH 9.7 Ca+ 40 KCl MWD SUMMARY INTERVAL 118' TO 2731' TOOLS Rotary Steerable 1.3 degrees, MWD Gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 27 @ 2110' 2 @ 2634' 11.9 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 5913 @ 2117' 439 @ 2634' 2656.1 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG Not circulating PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No cutting samples collected while drilling surface hole. PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY October 31, 2011 Slide/ rotary drill from 1652 ft to surface casing point at 2731’MD/ 2422’TVD; final parameters 15-16k wob, 0/ 100 rpm, 611 gpm, 1250 psi off bottom pressure, 95k up/ 75k down, 80k rotating; circulate and condition 10,000 strokes at 200 spm, 651 gpm, 1250 psi while reciprocating pipe from 2731 ft to 2620 ft; monitor well—static; short trip to top of HWDP; RIH to 2731 ft; circulate and pump sweep 8900 strokes surface to surface at 200 spm, 1350 psi; monitor well—static; POOH; stand back drill collars; lay down stabilizers, mud motor and gamma tool. Currently on the bank at report time. CANRIG PERSONNEL ON BOARD Winkelman/Silva, Resch__ DAILY COST $2427.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Nov 1, 2011 DEPTH 2731' PRESENT OPERATION POOH with inner 5" string TIME 2359 hrs YESTERDAY 2731' 24 HOUR FOOTAGE 0' CASING INFORMATION 20" @ 118'___ 13-3/8" @ 2721' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" HCC VM1 5198929 3X18,16CJ/ 0.942 118' 2731' 2613' 15.5 1-2-WT-A-E-2-NO-TD Csg Pt DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2731/ 2422 MW 9.0 VIS 49 PV 13 YP 16 GELS 10/12/16 FL 11.8 CL- 500 FC 2 SOL 4 SD OIL /96 MBT 25 pH 9.6 Ca+ 40 KCl MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG Not circulating PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled this period. PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY November 1, 2011 Clean up rig floor; rig up Weatherford casing equipment run 13-3/8” J-55 68.0 # casing per run order; rig down Weatherford equipment; rig up false table for inner drill pipe string; make up sting-in tool and RIH with 5” drill pipe to 2677 ft; tag/ sting into float collar and rig up to circulate with cement line; circulate 2900 strokes bottoms up; pressure test SLB to 3000 psi; pump 40 bbl 10.2 ppg mud push at 210 gpm, 312 bbl 12.0 ppg lead, 60 bbls 15.4 ppg tail at 210 gpm; displace 45 bbls with rig mud pump; cement in place at 1900 hrs; pull up and un-sting from float 30 ft; circulate 30 ft above float 5000 stks at 210 gpm, 200 psi; pump down wiper ball at 900 stks, 210 gpm, 500 psi; clear rig floor of un -needed tools. Currently POOH with inner string 5” drill pipe at report time. CANRIG PERSONNEL ON BOARD Silva/Winkelman, Resch___ DAILY COST $2427.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Nov 2, 2011, 2011 DEPTH 2731' PRESENT OPERATION Test BOP's TIME 2359 hrs YESTERDAY 2731' 24 HOUR FOOTAGE 0' CASING INFORMATION 20" @ 118___ 13-3/8" A 2721' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2731/ 2422 MW 9.0 VIS 48 PV 14 YP 14 GELS 10/12/15 FL 11.2 CL- 500 FC 2 SOL 4 SD OIL /96 MBT 22 pH 9.6 Ca+ 40 KCl MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG Not circulating PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY November 2, 2011 Continue to POOH with 5” inner string; lay down BHA and sting-in tool; change out elevators; pull 116k on 13-3/8” string; remove spacer plate, clear and clean rig floor; nipple down annular and diverter spool; cut and dress 20” conductor—cut joint total 24.55 ft; set well head, orient, set seals and test; set double gate on well head; install annular preventer and torque both; replace air boot on annular; install choke, kill and accumulator hoses; install flow riser and secure stack; change top drive wash pipe swivel; function test BOP’s; install test plug; fill stack with water and purge air from choke manifold; make up BOP test assembly. Currently initiating BOP tests at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch DAILY COST $2427.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Nov 03, 2011 DEPTH 3450' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 2731' 24 HOUR FOOTAGE 719' CASING INFORMATION 13-3/8" @ 2721' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2649' 54.70 250.25 2374.44' 2767' 55.81 251.25 2441.70' 2958' 57.33 249.38 2545.90' 3149' 57.48 248.88 2648.97' 3341' 57.52 248.50 2752.40' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12.25" HCC QD 605X 7022287 3X11, 4X14/ 0.8797 2731' 719' 3.9 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 351.1 @ 3111' 11.0 @ 2732' 208.4 236.6 FT/HR SURFACE TORQUE 9341 @ 3132' 2678 @ 2986' 6366.6 6867.1 FT-LBS WEIGHT ON BIT 35 @ 2731' 0 @ 9.8 9.8 KLBS ROTARY RPM 132 @ 3198' 59 @ 2741' 112.4 131 RPM PUMP PRESSURE 1711 @ 3337' 628 @ 2742' 1337.3 1549.2 PSI DRILLING MUD REPORT DEPTH 3450/ 2815 MW 9.1 VIS 44 PV 11 YP 13 GELS 7/8/8 FL 6.2 CL- 22.5k FC 2 SOL 4 SD 0.8 OIL 2/95 MBT 2 pH 9.4 Ca+ 260 KCl 24k MWD SUMMARY INTERVAL 2731' TO Current TOOLS Steering head, Ontrack, Gamma, Resistivity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 16 @ 3359' 0 @ 6.7 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 4075 @ 3359' 244 @ 2886' 1522.4 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 10-15u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sand PRESENT LITHOLOGY 90% Sand, 10 % Claystone/ Siltstone DAILY ACTIVITY SUMMARY November 3, 2011 Test BOP’s; rig down test tools; pressure test casing/ shoe; fill casing with 19 bbls and air out; test casing to 2000 psi for 30 minutes; re-calibrate pump pressure gages; blow down lines and rig down test equipment; pick up BHA #2 (12-1/4” bit assembly); RIH to top of HWDP; pick up 25 joints 5” drill pipe; continue to RIH to 2675 ft; tag float shoe at 2719 ft; drill out shoe track and 20 ft new formation to 2751 ft; encountered cement below shoe; monitor well 15 minutes—static; displace spud mud to 9.0 ppg Flow-Pro mud at 325 gpm, 700 psi; perform FIT to 15.0ppg EMW; drill ahead to 2965 ft; change out mud pump #2 bleeder valve while rotating, reciprocating and circulating at 346 gpm, 850 psi; drill ahead from 2695 ft to 3450 ft at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Nov 04, 2011 DEPTH 5392' PRESENT OPERATION Back ream to shoe TIME 2359 hrs YESTERDAY 3450' 24 HOUR FOOTAGE 1942' CASING INFORMATION 13-3/8" @ 2721' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3437' 57.32 247.55 2804.09' 3915' 57.65 248.38 3061.02' 4393' 57.39 249.36 3318.09' 4869' 57.47 249.81 3574.14' 5348' 57.44 250.62 3832.00' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12-1/4" HCC QD 605X 7022287 3X11,4X14/ 0.8797 2731' 2661' 15.7 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 409.5 @ 4364' 10.1 @ 4725' 193.8 197.1 FT/HR SURFACE TORQUE 15305 @ 5291' 4260 @ 3558' 8854.4 10767. FT-LBS WEIGHT ON BIT 49 @ 3901' 0 @ 11.3 5.7 KLBS ROTARY RPM 134 @ 4672' 102 @ 3827' 131.1 131 RPM PUMP PRESSURE 1915 @ 5321' 868 @ 4246' 1674.0 1785 PSI DRILLING MUD REPORT DEPTH 5393/ 3856 MW 9.2 VIS 45 PV 15 YP 24 GELS 9/13/15 FL 6 CL- 25k FC 2 SOL 5 SD 1.2 OIL 2/ 93 MBT 7 pH 9.4 Ca+ 200 KCl 24k MWD SUMMARY INTERVAL 2731' TO Current TOOLS Stering head, Ontrack, gamma, Resistivity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 151 @ 5278' 6 @ 5023' 40.4 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 30560 @ 5278' 1306 @ 5023' 8752.8 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 20u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sand, clays PRESENT LITHOLOGY 50% tuffaceous clay/ siltstone, 30% sand, 10 % sandstone, 10% conglomeratic sand DAILY ACTIVITY SUMMARY November 4, 2011 Drill ahead from 3450 ft to 5392 ft at 15-19k wob, 130 rpm, 9-14k torque, 609 gpm, 1800 psi; pump 32 bbl high viscosity sweep; circulate and condition; circulate bottoms up 10100 stks; back ream out from 5392 ft to 3383 ft at report time at 100 rpm, 8600 torque, 600 gpm, 1820 psi, rotating weight 110k, p/u 131k, s/o 94k. CANRIG PERSONNEL ON BOARD Winkelman, Resch + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Nov 05, 2011 DEPTH 7027' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 5392' 24 HOUR FOOTAGE 1635' CASING INFORMATION 13-3/8" 2721' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5829' 57.44 247.94 4091.78' 6211' 57.37 249.39 4297.45' 6498' 57.40 249.41 4452.03 6785' 57.48 248.69 4606.52' 6977' 60.35 251.76 4706.43' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12-1/4" HCC QD 605X 7022287 3x11,4x14/ 0.8797 2731' 4296' 23.8 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 414.7 @ 5587' 6.3 @ 5489' 167.9 110.8 FT/HR SURFACE TORQUE 21206 @ 6925' 6491 @ 6255' 13509.8 17403 FT-LBS WEIGHT ON BIT 51 @ 6925' 1 @ 6734' 11.1 7.9 KLBS ROTARY RPM 134 @ 5546' 53 @ 5393' 131.3 131 RPM PUMP PRESSURE 2420 @ 6658' 611 @ 5393.00000 2205.8 2336 PSI DRILLING MUD REPORT DEPTH 6893/ 4665 MW 9.3 VIS 49 PV 14 YP 27 GELS 13/22/23 FL 6.6 CL- 26k FC 2 SOL 6 SD 1 OIL 3/ 91 MBT 12 pH 9.3 Ca+ 260 KCl 24k MWD SUMMARY INTERVAL 2731' TO Current TOOLS Steering head, Ontrack, Gamma, Resistivity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 461 @ 5992' 7 @ 5489' 96.9 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS 26u CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 90936 @ 5992' 1624 @ 5489' 19817.3 CONNECTION GAS HIGH 0 ETHANE (C-2) 111 @ 5992' 0 @ 11.1 AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 60u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sand, sandstone; siltstone, claystone PRESENT LITHOLOGY 90% Sand, 10% Claystone DAILY ACTIVITY SUMMARY November 5, 2011 Continue back reaming from 3383 ft to 2712 ft at 100 rpm, 350 gpm, 650 psi; service top drive; circulate bottoms up 4500 strokes, 602 gpm, 1500 psi; run in hole from 2712 ft to 5392 ft; bump 40 bbls nut plug sweep at 250 gpm; downlink Baker tool; was down to 5392 ft—no fill; drill ahead from 5392 ft to 6733 ft at 15-17k wob, 130 rpm, 10-15k torque, 606 gpm, 2250 psi; downlink to close tool at 6733 ft and circulate bottoms up at 11800 strokes, 612 gpm, 2330 psi; down link to open tool; continue drilling ahead from 6733 ft to 6842 ft; downlink and start final curve at 6843 ft at 12/ 15k wob, 130 rpm, 17/18k torque, 609 gpm, 2350 psi. Currently drilling ahead at 7027 ft at report time. CANRIG PERSONNEL ON BOARD Winkelman, Rescfh + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Nov 06, 2011 DEPTH 7756' PRESENT OPERATION POOH TIME 2359 hrs YESTERDAY 7027' 24 HOUR FOOTAGE 729' CASING INFORMATION 13-3/8" @ 2721' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7033' 62.69 253.52 4752.21' 7265' 68.31 258.07 4832.25' 7457' 74.22 260.37 4893.10' 7648' 79.06 260.40 4936.86' 7716' 79.37 260.50 4949.59' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12-1/4" HCC QD 605X 7022287 3x11,4x14/ 0.8797 2731' 7756' 5025' 34.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 351.0 @ 7092' 13.5 @ 7212' 139.8 134 FT/HR SURFACE TORQUE 22080 @ 7090' 10196 @ 7499' 17202.4 17793 FT-LBS WEIGHT ON BIT 22 @ 7513' 4 @ 7404' 15.7 20.9 KLBS ROTARY RPM 135 @ 7116' 53 @ 7499' 131.8 133 RPM PUMP PRESSURE 2484 @ 7638' 1155 @ 7215' 2327.8 2388 PSI DRILLING MUD REPORT DEPTH 7756/ 4957 MW 9.1 VIS 40 PV 10 YP 16 GELS 6/10/12 FL 7.6 CL- 27k FC 2 SOL 5 SD 0.2 OIL 2/ 93 MBT 12 pH 9.2 Ca+ 200 KCl 24k MWD SUMMARY INTERVAL 2731' TO Current TOOLS Steering head, Ontrack, Gamma, Resistivity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 903 @ 7509' 12 @ 7215' 161.0 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 183764 @ 7509' 2465 @ 7215' 30678.6 CONNECTION GAS HIGH 0 ETHANE (C-2) 358 @ 7509' 0 @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 0 while circ over top of hole PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY Sand, claystone, siltstone DAILY ACTIVITY SUMMARY November 6, 2011 Drill ahead from 7026 ft to 7307 ft; circulate and condition hole—circulate bottoms up at 609 gpm, 2300 psi, 130 rpm, reciprocate pipe; get sand returns; drill ahead from 7307 ft to 7756 ft TD casing point; CANRIG records 900 units gas maximum; circulate bottoms up until hole clean at 12000 strokes; downlink survey; begin to loose returns; decrease pump rate to 150 gpm, 50 rpm to maintain lost circulation; pump 40 bbls LCM pill; monitor well; POOH from 7756 ft to 7462 ft tight spot; pulled 25k over165k/ 93k; drop first ball at 1224 hrs; let ball fall and attempt to open well commander at 3400 psi; shut in pumps; weight pressure release; pump 700 strokes at 168 gpm, 230 psi; drop second ball at 1420 hrs; let fall for 5 minutes; pressure up; attempt to isolate BHA with pumps isolated pressure to 4600 psi with test pump; work pipe and rotate 45 rpm, 165k/ 93k during process; continue POOH wet from 7462 ft to 5775 ft at 60 rpm, 165-185k up/ 95k down; strap pipe while POOH; Current bit depth 5775 ft at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Nov 07, 2011 DEPTH 7756' PRESENT OPERATION RIH/ Wash and Ream at 5565 ft TIME 2359 hrs YESTERDAY 7756' 24 HOUR FOOTAGE 0' CASING INFORMATION 13-3/8" @ 2721' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7716' 79.37 260.50 4949.59' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12-1/4" HCC QD 605X 7022287 3x11,4x14/ 0.8797 2731' 7756' 5025' 34.5 1-1-NO-A-X-I-TD Csg Pt. RR 2 12-1/4" HCC QD 605X 7022287 3x11,4x14/ 0.8797 7756' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7756/ 4957 MW 9.1 VIS 43 PV 11 YP 15 GELS 6/10/12 FL 7.8 CL- 26.5k FC 2 SOL 5 SD 0.1 OIL 2/93 MBT 12 pH 9.2 Ca+ 200 KCl 23k MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 44 units @ shoe CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 15-20u PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY November 7, 2011 Continue to back ream out of hole from 5775 ft to 5201 ft with no pump (string plugged); tight from 5630 ft to 5650 ft; pull out of hole on elevators from 5201 ft to HWDP; monitor well at shoe; set back HWDP; lay down jars; pick up new jars; attempt to recover well commander balls from jars; string drains below jars; lay down BHA #2; change out jars (well commander balls inside); lush smart tools with fresh water through cement line at 63 spm, 205 gpm, 185 psi, 344 strokes; rig down/ blow down lines; stand back collars; down load third party tools, lay down same; pick up BHA #3 cleanout assembly; trip in hole to 2736 ft; fill pipe with 230 stks; 60 bbls displacement, 358 gpm, 55/ 55 spm, 208 psi, 3800 stks, 9.0 ppg in/ 9.1 ppg out; service topdrive and crown; continue trip in hole from 2736 ft to 5543 ft; fill pipe 200 stks every 20 stands; set down 25k at 5543 ft; wash and ream at 5543 ft 60 rpm, 15k torque, 70 spm, 222 gpm, 467 psi. Currently working down from 5543 ft at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR Steve Ratcliff DATE Nov 08, 2011 DEPTH 7756' PRESENT OPERATION Prepare to run 9-5/8" casing TIME 2359 hrs YESTERDAY 7756' 24 HOUR FOOTAGE 0' CASING INFORMATION 13-3/8" @ 2721'___ 9-5/8" @ SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7716' 79.37 260.50 4949.59' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED RR 2 12-1/4" HCC QD 605X 7022287 3x11,4x14/ 0.8797 7756' 7756' 1-1-NO-A-X-I-TD Csg Pt DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7756/ 4957 MW 9.1 VIS 46 PV 12 YP 15 GELS 6/8/11 FL 7.8 CL- 26k FC 2 SOL 5 SD 0.1 OIL 2/93 MBT 12 pH 9.0 Ca+ 200 KCl 22k MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 220u MAX CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG n/a PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY November 8, 2011 Continue to wash and ream from 5543 ft to 5703 ft at 60 rpm, 222 gpm, 450 psi; continue to wash down from 5703 ft and tag bottom at 7756 ft (no fill); circulate and condition; lost circulation; spot 100 bbls of 100 #/bbl LCM pill; fill backside (162 bbl loss) pooh 10 stands to 6924 ft; monitor well; circulate bottoms up condition hole and mud at 350 gpm, 200 psi; spot lube pill (225 bbls with 3.5% lube); continue to POOH from 6924 ft to 2512 ft; monitor well at shoe; continue trip out of hole from 2544 ft to 823 ft; lay down 2 joints; stack back HWDP; lay down BHA #3 and clear rig floor; drain stack and blow down all lines; pull wear ring and flush stack; set test plug; change rams to 9-5/8” pipe rams; test pipe rams to 250/ 2500 psi for 5 minutes; pick up third party tools and prepare to run 9-5/8” 40# L-80 BTC casing; fill hole 9 bbls; change out bales; rig up fill up tool; rig up stabbing board; pick up 54 stabilizers. Preparations continue for running 9-5/8” casing at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR Steve Ratcliff DATE Nov 09, 2011 DEPTH 7756' PRESENT OPERATION Running 9-5/8" casing TIME 2359 HRS YESTERDAY 7756' 24 HOUR FOOTAGE 0' CASING INFORMATION 13-3/8"@2721'___ 9-5/8"@ SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7716' 79.37 260.50 4949.59' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED RP 2 12-1/4" HCC QD 605X 7022287 3x11, 4x14/ 0.8797 7756' 7756' 1-1-NO-A-X-I-NO-TD Casing Point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7756'/4957' MW 9.0 VIS 44 PV 12 YP 14 GELS 7/9/12 FL 8 CL- 25k FC 1/ SOL 4.5 SD 0.1 OIL 2/94 MBT 12 pH 8.8 Ca+ 200 KCl 20k MWD SUMMARY INTERVAL TO TOOLS Currently no tools in the hole. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 68u MAX CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 while circulating over top of hole PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage was drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No new footage was drilled this period. DAILY ACTIVITY SUMMARY November 9, 2011 Rig up 9 5/8” casing handling equipment; Pick up shoe track (Baker Lock), check floats, ok; Pick up 9.625” casing as per running order to 2698’ (shoe 2717’); circulate and condition at 2698’; break circulation casing volume 2700 strokes; stage up 350 GPM at 370 PSI; CANRIG records 68 units gas maximum at shoe; run casing, pick up casing from 2698’ to 6034’; fill casing with 35 bbls LCM Pill; run casing 9 5/8” from 6034’ to 7680’; drill string 220K up and 125K down; lost returns at 6074’; lost 40 bbls for each 10 joints; tight hole at 7640’; pump down with fill up tool at 126 GPM at 450 PSI; hole packed off at 7681’; then was bled to 1300 PSI; while running casing attempt to bleed off to release the fill tool; back off bleeding PSI from casing; rig down fill up tool; rig up circulating head and lines; run casing work pipe from 7625’ to 7675’; 275K up and 95K down; pumping 42 GPM at 270 PSI; partial returns; 30 min loss rate of 84 BPH; run casing and rig down circulating lines; make up joint #188; rig up circulating head and lines; work pipe and build LCM Pill; 265K up and 107K down; no pumps CANRIG PERSONNEL ON BOARD Winkleman, Resch + 2 SC's DAILY COST $2947.00 REPORT BY Justin Rosenblume CINGSA Cannery/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR Steve Ratcliff DATE Nov 10, 2011 DEPTH 7756' PRESENT OPERATION Cementing 9-5/8" casing TIME 23:59 HRS YESTERDAY 7756' 24 HOUR FOOTAGE 0 CASING INFORMATION 13-3/8"@2721'____ 9-5/8"@7756' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7716' 79.37 260.50 4949.59' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED RP 2 12-1/4" HCC QD 605X 7022287 3x11, 4x14/ 0.8797 7756' 7756' 1-1-NO-A-X-I-NO-TD Casing Point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7756'/4957' MW 9.3 VIS 44 PV 10 YP 14 GELS 5/7/8 FL 9.8 CL- 20K FC 1/ SOL 5 SD 0.2 OIL 1/94 MBT 8 pH 9.0 Ca+ 100 KCl 18.5K MWD SUMMARY INTERVAL TO TOOLS Currently no tools in the hole. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 568u MAX CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage was drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No new footage was drilled this period DAILY ACTIVITY SUMMARY November 10, 2011 Run casing work pipe from 7675’ to 7718’; build and pump 40 bbls of 100 ppb LCM Pill; 67 GPM at 475 PSI; run casing by making up land joint and hanger; wash down from 7718’ and land hanger; 9-5/8” shoe at 7746’; pick up weight 210K and slack off weight 110K; build volume weight; stage pump to 105 GPM at 409 PSI; circulate and condition mud; rig down Weatherford casing equipment; prepare and rig up for cement job; rig up cement head; working as directed by operator; continued to circulate 101 GPM at 280 PSI; pre-job safety meeting; Schlumberger computer issues; tour loss 10 bbls; primary cementing; test lines to 1000/4000 PSI; pump 36 bbls mud; push 5 bpm at 500 PSI; Schlumberger pump first stage with 236 bbls of 12# cement lead and 48 bbls 14# tail at 5.5 bpm at 660/800 PSI; 11% returns; primary cementing drop plug and chase with 9.0 # mud at 45/46 spm and 292 gpm at 313 PSI; 7% returns; final casing pressure at 1030 PSI; bump plug 7612 strokes at 900 psi; cement in place at 15:50 HRS; bleed off and check floats; load closing plug; open stage collar with 2600 PSI; primary cementing circulation casing volume 3480’ with 66 spm and 212 gpm at 280 PSI and 265 bbls; Schlumberger batch cement primary cementing pump; 36 bbls mud push; Schlumberger pumps second stage cement 12.0# 212 bbls at 5 bpm at 650 PSI; drop closing plug; rig displace with 9.0 ppg mud 292 gpm at 360/620 PSI; bump plug 3440 strokes 2100 PSI cement in place at 19:13 HRS; hold 5 min; bleed PSI; primary cementing rig down cement head; X-O adapter and land joint; flush same; lower down landing joint; drain and flush stack; wash rig floor; install wellheads and continue to flush stack and well head; pick up pack off running tools; install pack off; run I lock down screws; test to 3000 PSI for 15 min; verified by company man; rig down test equipment; change rams with 5x7’ variable rams; open blind ram doors and flush clean; lay down 3rd party tools; rig down 350T elevators; rig up zip line. CANRIG PERSONNEL ON BOARD Winkleman, Resch + 2 SC's DAILY COST $2947.00 REPORT BY Justin Rosenblume CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR Steven Ratcliff DATE Nov 11, 2011 DEPTH 7756' PRESENT OPERATION Running Hole TIME 23:59 HRS YESTERDAY 7756' 24 HOUR FOOTAGE 0' CASING INFORMATION 13-3/8"@2721'_____ 9-5/8"@7746 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7716' 79.37 260.50 4949.59' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 8-1/2" HCC HCR503ZX 7114328 3x13's, 3x14's/ 0.8399 7756' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7756'/4957' MW 9.2 VIS 58 PV 12 YP 20 GELS 12/16/18 FL 6 CL- 20K FC 1/ SOL 4 SD 0.1 OIL 1/95 MBT 8 pH 9.0 Ca+ 180 KCl 16.5K MWD SUMMARY INTERVAL TO TOOLS Motor-Steerable 1.0 degree + Triple Combo GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 147u MAX CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1u AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage was drilled this period INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No new footage was drilled this period DAILY ACTIVITY SUMMARY November 11, 2011 Rig up and rig down to run casing; rig down 350T elevators; change out long bails; rig down stabbing board; lay down cement head and cross-over; lay down swage and single joint elevators; blow down a cement line; clear floor; service top drive; change out top drive saver sub; service top drive; test BOPs; pressure test ram body and 5”x7” variable rams with 5”x7” test joints; 250 PSI low; 2500 PSI high; replaced seal on plug; lay down test tool; pull test plug; install wear ring; 9-1/8” inside diameter and 13-3/8” outside diameter; blow down choke manifold, kill and choke lines; pick up BHA; stage tools on the rig floor; pick up BHA #4; orient mud motor with MWD; plug in and verify tools check communications; load nuclear sources; pick up non-magnetic drill collar and well commander; trip in hole with heavy weight drill pipe to 953’; pick up 21 joints of drill pipe to 1623’ 67K/62K; cut drilling line and slip 200’; inspect brass tool orientation fill pipe; pump 54/50/ spm and 330 gpm at 650 PSI; MWD check pulse and readings 850 strokes; calibrate mud depth decoder; trip in hole with stands; drill pipe to 3339’ 95K up and 73K down CANRIG PERSONNEL ON BOARD Winkleman, Resch + 2 SC's DAILY COST $2947.00 REPORT BY Justin Rosenblume CINGSA Canery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR Steve Ratcliff DATE Nov 12, 2011 DEPTH 8512' PRESENT OPERATION Drilling ahead TIME 2359 HRS YESTERDAY 7756' 24 HOUR FOOTAGE 756' CASING INFORMATION 9-5/8 " 7746' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7879' 78.58 259.92 4981.66' 8165' 79.64 261.33 5034.95' 8356' 79.83 261.13 5069.00' 8516' 78.96 260.70 5098.60' 8577' p. 5110.29' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 8-1/2" HCC HCR503ZX 7114328 3x13,3x14/ 0.8399 7756' 756' 6.0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 304.4 @ 7757' 19.8 @ 8271' 140.6 141. FT/HR SURFACE TORQUE 17974 @ 8455' 489 @ 7948' 14429.1 14745 FT-LBS WEIGHT ON BIT 26 @ 7951' 1 @ 7757' 9.8 7.3 KLBS ROTARY RPM 133 @ 7756' 1 @ 7948' 73.4 84 RPM PUMP PRESSURE 2388 @ 7756' 1112 @ 7940' 1336.3 1468 PSI DRILLING MUD REPORT DEPTH 8321/ 5064 MW 9.1 VIS 45 PV 10 YP 176/9/11 GELS 6.8 FL .0 CL- 21k FC 2 SOL 4.5 SD 0.5 OIL 2/94 MBT 8 pH 10.5 Ca+ 550 KCl 18k MWD SUMMARY INTERVAL 7756' TO Current TOOLS Motor-Steerable 1.0 degree, Trip/e Combo GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 329 @ 8290' 12 @ 7843' 89.3 TRIP GAS 14u CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 78597 @ 8290' 2445 @ 7843' 18121.6 CONNECTION GAS HIGH 0 ETHANE (C-2) 115 @ 8290' 0 @ 17.4 AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 40-60u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY 90% sand, 10% claystone + siltstone DAILY ACTIVITY SUMMARY November 12, 2011 Continue trip in hole from 3939 ft to 3470 ft; wash from 3470 ft to top of DV collar at 3483 ft; drilling DV collar to 3485 ft at 323 gpm, 950 psi, 2-6k wob, 50 rpm; wash and ream from 3483 ft with hard cement from 3505 ft tp 3730 ft; wash from 3730 ft to 3916 ft (clean); circulate and condition hole, circulate bottoms up; pressure test 9-5/8” casing to 3000 psi for 30 minutes; blow down top drive and kill line; continue to run in hole on elevators from 3871 ft to 7650 ft; fill drill pipe and wash from 7650 ft to tag cement at 7656 ft/ float collar at 7662 ft; drill float collar, 80 ft cement and float shoe at 7746 ft at 5-10k wob, 60-65 rpm, 400 gpm, 1200 psi; wash and ream from 7746 ft to 7756 ft; drill 20 ft new formation to 7776 ft with no mud losses; circulate bottoms up at 7776 ft at 400 gpm, 1200 psi, 46 rpm, 120k rot, 125k p/u, 115k s/o; pull into casing and perform LOT---pump ½ bpm and record pressure each ½ bbl: 3 bbls broke down at 467 psi, 200 to 92 psi in 5 minutes, EMW = 11.2 ppg; pump 38 bbl 9.4 ppg pill at 7746 ft at 409 gpm, 1130 psi; chase with 1700 stks, slow to 409 gpm until clear of tools; perform second FIT using test pump at ½ bpm to 300 psi = 10.3 ppg EMW. Drill ahead from 7776 ft to 7938 ft at 15-18k wob, 70-90 rpm, rotating weight 120k, ECD 9.48-10.13 ppg; slide from 7938 ft to 7963 ft; rotary drill from 7963 ft to 8512 ft at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry REsch CINGSA Canery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR Steve Ratcliff DATE Nov 13, 2011 DEPTH 8577' PRESENT OPERATION RIH with CBL wireline tool TIME 2359 hrs YESTERDAY 8512' 24 HOUR FOOTAGE 65' CASING INFORMATION 9-5/8" @ 7746' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8516' 7896 260.7 5098.60' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 8-1/2" HCC HCR503ZX 7114328 3x12,3x14/ 0.8399 7756' 8577' 821' 6.5 TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 247.3 @ 8530' 11.9 @ 8513' 152.1 129.2 FT/HR SURFACE TORQUE 18398 @ 8516' 13412 @ 8564' 16147.4 14376 FT-LBS WEIGHT ON BIT 12 @ 8531' 1 @ 8513' 10.8 10.0 KLBS ROTARY RPM 92 @ 8560' 82 @ 8549' 87.1 91 RPM PUMP PRESSURE 1638 @ 8531' 1167 @ 8513' 1425.2 1345 PSI DRILLING MUD REPORT DEPTH 8577' 5110 MW 9.1 VIS 46 PV 10 YP 16 GELS 5/8/9 FL 7 CL- 21k FC 1 SOL 4.5 SD 0.25 OIL 2/94 MBT 8 pH 10.2 Ca+ 480 KCl 18.5k MWD SUMMARY INTERVAL 7756' TO 8577' TOOLS Motor-steerable 1.0 degree, Triple Combo GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 73 @ 8512' 25 @ 8513' 58.1 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 15281 @ 8520' 5103 @ 8513' 12443.9 CONNECTION GAS HIGH 0 ETHANE (C-2) 25 @ 8512' 0 @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY November 13, 2011 Drill ahead from 8512 ft to TD at 8577 ft 10-12k wob, 90 rpm, 390 gpm, 1350 psi, buckram every connection; p/u 180k, s/o 80k, rot 120k; circulate and condition at 8577 ft, 410 gpm, 1500 psi, 60 rpm; begin to pull out of hole from 8577 ft to 8085 ft; tight hole encountered at 8085 ft, pulled 25k over; back ream from 8085 ft to shoe at 7746 ft; circulate hole clean; pump dry job; drop 2-7/8” drill pipe drift; blow down top drive; continue trip out of hole from 7780 ft to 953 ft; Lay down BHA #4; lay down HWDP, jars, NMDC, well commander; unload nuclear sources and download MWD; lay down remaining BHA components; pick up CBL tools; currently running in hole with Wireline tools at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR Steve Ratcliff DATE Nov 14, 2011 DEPTH 8577' PRESENT OPERATION Trip out of hole TIME 2359 hrs YESTERDAY 8577' 24 HOUR FOOTAGE 0' CASING INFORMATION 9-5/8" @ 7746' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8516' 78.96 260.70 5098.60' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED RR BN 3 8-1/2" HCC HCR503ZX 7114328 3x12,3x14/ 0.8399 8577' 8577' 1-3-BT-G-X-1-LT-TD TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8577/ 5110 MW 9.1 VIS 47 PV 11 YP 16 GELS 5/8/9 FL 7.2 CL- 20k FC 1 SOL 4.5 SD 0.25 OIL 1/95 MBT 8.5 pH 10.0 Ca+ 520 KCl 18.5K MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 195u CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled this period. PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY November 14, 2011 Run 9-5/8” cement bond log; could not get below 7362 ft; complete Wireline work, lay down tool, retrieve junk in logging tool centralizer; pick up BHA #4 and prepare for cleanout run; trip in hole to 3270 ft; fill pipe and break circulation; blow down topdrive; continue RIH from 3270 ft to 8220 ft; wash and ream from 8220 ft to 8577 ft; circulate and condition at 311 gpm, 612 psi; pump out of hole 8577 ft to casing shoe; pump dry job; service topdrive, crown, blocks; POOH on elevators from 7746 ft to 3080 ft at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch + 2 SC's____ DAILY COST $2947.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR Steve Ratcliff DATE Nov 15, 2011 DEPTH 8577' PRESENT OPERATION Prepare to test cement lines TIME 2359 hrs YESTERDAY 8577' 24 HOUR FOOTAGE 0' CASING INFORMATION 9-5/8" @ 7746'___ 7" Liner @ SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8516' 78.96 260.70 5098.60' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8577/ 5110 MW 9.1 VIS 48 PV 10 YP 17 GELS 5/8/10 FL 7.4 CL- 20k FC 1 SOL 4.5 SD 0.2 OIL 1/95 MBT 8.5 pH 9.9 Ca+ 480 KCl 18.5k MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 62u CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0/ 25u PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY November 15, 2011 Continue trip out of hole; lay down 11 joints HWDP and jars; lay down 8-1/2” BHA; rig up Weatherford to run 7” 26# L-80 VAM top liner; make up shoe track and Baker Lock 2 connections; run 23 joints with centralizer on each joint; fill pipe and check floats—OK; continue trip in hole slow with 7” liner on 5” drill pipe; fill pipe every 20 stands; run in hole to 7675 ft at 155k/ 72k; make up cement head, 10 ft pup, 1 joint; pull and lay down same; circulate and condition to clear pipe at 266 gpm, 300 psi; pump 2021 strokes; 152k p/u, 83k s/o rotate 10 rpm, 9- 10k torque, rot wt 112k; continue trip in hole with 7” liner on 5” drill pipe from 7675 ft to 8536 ft; pick up cement head; tag TD at 8577 ft, 28.5 ft down on single; pick up to 165k plus 2 ft; rig up lines for cement job; circulate bottoms up at 209 gpm, 570 psi; attempt to move pipe and rotate— no go. Currently preparing to pressure test lines at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch DAILY COST $2427.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR Steve Ratcliff DATE Nov 16, 2011 DEPTH 8577' PRESENT OPERATION Test BOP's TIME 2359 hrs YESTERDAY 8577' 24 HOUR FOOTAGE 0' CASING INFORMATION 9-5/8" @ 7746___7" liner @ 8575' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8577/5110 MW 9.1 VIS 46 PV 11 YP 15 GELS 6/8/9 FL 7.4 CL- 20k FC 1 SOL 5 SD 0.25 OIL 1/94 MBT 10 pH 9.7 Ca+ 100 KCl 18k MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0/0 PENTANE (C-5) @ @ HYDROCARBON SHOWS No footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No footage drilled this period. PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY November 16, 2011 Cement operations continue; pressure test cement lines 1000 psi low/ 4800 psi high; pump 32 bbl 11.5 ppg spacer at 8 bpm followed by 42 bbl Flexstone 14 ppg cement; flush lines back to pits; displace 169 bbls; bump plug to 2200 psi shut in bleed pressure, confirm floats held; pressure up to 2600 psi with Schlumberger and set hanger set down weight; confirm pick up with of 65k;pressure up to 3900 psi to release running tool; bleed pressure to 500 psi; pick up and confirm free; pick up 10 ft and set packer while holding 500 psi; pick up 30 ft to confirm packer release; circulate above line; pump dry job; prepare to POOH with 7” running tool; lay down cement head; POOH to surface; prepare to test BOP’s. Currently testing BOP’s at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch___ DAILY COST $2427.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Nov 17, 2011 DEPTH 8577' PRESENT OPERATION On the bank TIME 2359 hrs YESTERDAY 8577' 24 HOUR FOOTAGE 0' CASING INFORMATION ___9-5/8" @ 7746'___7" liner @ 8575' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8577/ 5110 MW 9.1 VIS 46 PV 11 YP 15 GELS 6/8/8 FL 7.5 CL- 19k FC 1 SOL 4.5 SD 0.25 OIL 1/95 MBT 10 pH 9.8 Ca+ 440 KCl 17.8k MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 2u CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0/ 0u PENTANE (C-5) @ @ HYDROCARBON SHOWS No new hole drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new hole drilled this period. DAILY ACTIVITY SUMMARY November 17, 2011 Complete BOP tests; pull test tool; drain stack; blow down kill line, choke line and choke manifold; rig down testing equipment; pick up Baker 7” polishing mill; run in hole to 7569 ft; break circulation; wash and ream to liner top at 7603 ft; polish inside of liner top from 7603 ft to 7611 ft; tag liner top with no go at 7603 ft; p/u 154k, s/o 76k, rot 112k;circulate and condition for casing test; test 9-5/8” casing at 2500 psi for 30 minutes—OK; pump dry job; blow down top drive and kill line; lay down 5” drill pipe while inspecting tool face, threads, hard band. Currently on the bank at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch DAILY COST $2427.00 REPORT BY Larry Resch CINGSA Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 2 REPORT FOR John Nicholson DATE Nov 18, 2011 DEPTH 8577' PRESENT OPERATION Prepare to displace to brine. TIME 2359 hrs YESTERDAY 8577' 24 HOUR FOOTAGE 0' CASING INFORMATION ___9-5/8" @ 7746'___7" liner @ 8575" SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8577/ 5110 MW 8.7 VIS PV YP GELS FL CL- 38.5k FC SOL SD OIL MBT pH Ca+ KCl 38.5k MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0/ 0u PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY November 18, 2011 Lay down Baker polishing mill; prepare to run 7” tubing; change to long bales and 7” elevators; pick up Baker seal assembly; trip in hole with 7” 26# tieback string, running slowly due to thick mud running out the top of the 7”; run in hole to 7430 ft; make up SSSV sub assembly; pick up SSSV control line spool and rig up to run line; continue to run in hole to no go at 7604 ft; set down 15k; space out with hanger; rig up circulating assembly; blow through line to ensure clear. Currently running control line through hanger at report time. CANRIG PERSONNEL ON BOARD Winkelman, Resch___ DAILY COST $2427.00 REPORT BY Larry Resch
