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211-122
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-4 CANNERY LOOP UNIT S-4 Jim Regg InspectorSrc: Reviewed By: P.I. Suprv Comm ________ JBR 06/12/2024 S-4 50-133-20598-00-00 211-122-0 G SPT 4867 2111220 1500 1289 1306 1315 1317 0 0 0 0 4YRTST P Josh Hunt 4/25/2024 Good test. There was a rate change during this test which is the reason for the tubing pressure increase. 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-4 Inspection Date: Tubing OA Packer Depth 460 1830 1824 1821IA 45 Min 60 Min Rel Insp Num: Insp Num:mitJDH240425181857 BBL Pumped:1.5 BBL Returned:1.5 Wednesday, June 12, 2024 Page 1 of 1 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-4 PTD: 211-122 API: 50-133-20598-00-00 Initial Data Transmittal of x Sigma Analysis using RMT3D – 02/21/2024 x RMT3D Processed Log LAS file – 02/21/2024 Data Transfer Folder: CINGSA Well Logs Subfolders: 211-122 CLU Storage 4 Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: 211-122 T38669 Meredith Guhl Digitally signed by Meredith Guhl Date: 2024.03.26 13:13:14 -08'00' MEMORANDUM TO: Jim ReggyI P.Supervisor (e 5I "I T'V� 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 SJ CANNERY LOOP UNIT S4 Sre: Inspector Reviewed By: ,q P.I. Supry Comm Well Name CANNERY LOOP UNIT S-4 API Well Number 50-133-20598-00-00 Inspector Name: Brian Bixby Inap Num: mitBDB200423112552 Permit Number: 211-122-0 Inspection Date: 4/21/2020 ' Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well s-4 Type Inj c TVD 4867 Tubing 113,5 1135 11as tun PTD 1 2111220 " ,Type Test SPT iTest psi 1500 IA 517 2100 2091 2088 BBL Pumped: 2.2 BBL Returned: 2.2 OA o 0 0 0 Interval 4YRTST P/P P I Notes: Friday, April 24, 2020 Page I of I S • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: Wednesday,April 13,2016 P.I.Supervisor It SUBJECT:Mechanical Integrity Tests COOK INLET NATURAL GAS STORAGE A S-4 FROM: Brian Bixby CANNERY LOOP UNIT S-4 Petroleum Inspector Src: Inspector Reviewed By: P.I.Supry .1m— NON-CONFIDENTIAL Comm Well Name CANNERY LOOP UNIT S-4 API Well Number 50-133-20598-00-00 Inspector Name: Brian Bixby Permit Number: 211-122-0 Inspection Date: 4/5/2016 Insp Num: mitBDB160406111525 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well S-4 - Type Inj G' TVD 4867 , Tubing 1541 1542 - 1542 - 1542 PTD 2111220 Type Test SPT Test psi 1500 IA 500 2120 - { 2120 - 2110 - Interval 4YRTST P/F P ' OA 0 0 0 _ 0 L Notes: SCANNED SEP 2 7 2016 Wednesday,April 13,2016 Page 1 of 1 Cook Inlet Natural Gas 3 Spenard Road S TORA Box 1e AK An -, ` �= �...,.., Anchorage, AK 99519 -0989 Q N July 30, 2012 RECEI Alaska Oil & Gas Conservation Commission 333 W 7 Avenue, Suite 100 JUL 3 0 2012 Anchorage, AK 99501 AOGCC Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Report of Sundry Well Operations — Form 10 -404 CLU Storage 4 (Permit No. 211122) Attached, please find Report of Sundry Well Operations Form 10 -404 for CINGSA's CLU Storage 4, 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, . oldruk; M. Colleen Starring Vice President 4 'a Enclosure as stated STATE OF ALASKA ALA. OIL AND GAS CONSERVATION COMMON REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon [J Repair Well [J Plug Perforations [J Perforate © Other [J 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: 211122 Name: Cook Inlet Natural Gas Storage Alaska, LLC Development ❑ Exploratory ❑ 3. Address: Stratigraphic ❑ Service E► 6. API Number: P.O. Box 190989, Anchorage, AK 99519 50- 133 - 20598 -0000 7. Property Designation (Lease Number): 8. Well Name and Number: ADL 391627 CLU Storage 4 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 10,500 feet Plugs measured none feet true vertical 5,112 feet Junk measured none feet Effective Depth measured 10,416 feet Packer measured 8,425 feet true vertical 5,108 feet true vertical 4,867 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 117.5' 20" 117.5' 117.5' n/a n/a Surface 2,467' 13 3/8" 2467' 2090' 3,450 1,950 Intermediate 8,608' 9 5/8" 8608' 4921' 5,750 3,090 Production Liner 2,073' 7" 10498' 5112' 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 8,425' 4,867' Packers and SSSV (type, measured and true vertical depth) BHI 9 5/8" ZXPN Halliburton 7" FXE SSSV Pkr- 8,425 / 4,867' SSSV - 150' / 150' 12. Stimulation or cement squeeze summary: Cleaned out fill material using 6% KCL, Clay Guard, and 70 quality foam treatment. Intervals treated (measured): 8,800' - 10,380' MD Treatment descriptions including volumes used and final pressure: Ran in hole with mill /motor and wash to 10,426' with 70 quality foam. Total treatment volume was 164.4 Bbls. Recovered 178 Bbls. Final circulating pressure was 2450 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: 7,000 400 psig. 1,040 psig. Subsequent to operation: 14,000 400 psig. 1,040 psig. 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Perforation Record Exploratory El Development Service El Stratigraphic ❑ Daily Report of Well Operations 16. Well Status after work: Oil ❑ Gas ❑ WDSPL ❑ 6/18/2012 - 6/20/2012 and 6/24/2012 - 7/3/2012 GSTOR 0 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: 312168 and 312793 Contact \ZICi_ CO *C5 ? l V 322 ` Printed Name NI • C\\€ S� ` 1 I Title v 1 Ct WC S\r \C/ 1 i Signature Phone 9 360 4 - -- Date 1 1 . 1° 'ZU1Z 4. 9/ Form 10 -404 Revised 11/2011 Submit Original Only ( i - 4 / . 1 2 _ • • Date Daily Well Operations Summary CLU Storage 4 6/18/2012 RU Pollard and pull SSSV. 6/19/2012 Rig up BJ Services coil unit and perform BOP test. Witness waived by Jim Regg. 6/20/2012 Clean out fines to TD with 70Q foam. Total fluid used 164.4 Bbls; recovered 178 Bbls. 6/24/2012 RU Schlumberger E Line. RIH with 25' , 3 1/2" gun, 4 spf. Tractor to 10400', position gun to re- perforate 10350'- 10235'. Fire gun #1 and POOH. 6/25/2012 RIH with Gun #2, 25', 3 1/2" 4 spf. Tractor to 10235' and position guns to re- perforate 10325'- 10300'. Fire gun and POOH. RIH with Gun #3 and re- perforate 10300 10275'. POOH. 6/26/2012 RIH with Gun #4 and re- perforate 10,275'- 10,250'. POOH. RIH with Gun #5, 20', 3 1/2 ", 4 spf and re- perforate 10,250- 10,230'. POOH. 6/27/2012 RIH with Guns #6, and #7 and re-perforate 10120'- 10090', 10090'- 10060' with 2 7/8" guns, 4 spf. 6/28/2012 RIH with Guns #8, and #9 and re- perforate 10060'- 10030', 10030'- 10000' with 2 7/8" guns, 4 spf. 6/29/2012 RIH with Guns #10, #11, and #12 and re- perforate 10000'- 9970', 9970'- 9940', and 9940' -9910' with 2 7/8" guns, 4 spf. 6/30/2012 RIH with Guns #13, #14, and #15 and re- perforate 9450'- 9420', 9420'- 9390', and 9380'- 9350' with 2 7/8" guns, 4 spf. 7/1/2012 RIH with Guns #16, #17, and #18 and re- perforate 9350'- 9320', 9040'- 9010', and 9000'- 8970' with 2 7/8" guns, 4 spf. 7/2/2012 RIH with Guns #19, #20, and #21 and re- perforate 8970'- 8940', 8940'- 8910', and 8910'- 8900' with 2 7/8" guns, 4 spf. 7/3/2012 RU Weatherford and flow back well to separator to clean up perfs. Total flow 670 Mcf. RD Weatherford. RU Pollard to install SSSV. Purge control ine, set valve, and pressured up valve. Valve held pressure. RD Pollard. I • • CINGSA FMC Wellhead - 13 5/8" 500014 Multibowl CLU Storage 4 FMC Tree - 7" 500071 complete with SSV Re- completion Schematic • y. 7/3/2012 20" 133# X56 driven to 117.5' TVIYI 17.5' MD 7" Halliburton Wireline Retrievable SSSV @ 150' TVD /150' MD 13 3/8" 68# J55 RTC Surface Casing (cv 2.090' TVD / 2467' MD * , 16" hole i Cemented to Surface DV Collar (cu 3,404' - . 7" x 9 518" Baker ZXP Liner Top Packer with 10' seal bore (ti 4,867' TVD 1 8,425' MD 9 5,8" 40# L80 BTC Intermediate Casing (0 4,921' TVD / 8,608' MD 12 1f4" hole / Cemented to Surface 7" 2611 L80 Vam Top Tubing Original Perforations 2 -29 -02 MD Perforation TVD Perforation From To Footage From To Footage 10,380 9,880 500 5,106 5,074 31 9,630 9,590 40 5,061 5.059 2 9,460 9,270 190 5.050 5.031 18 9,170 9,130 40 5,022 5,017 5 , 9,040 8,880 160 5,005 4.984 22 7" RN Nipple, 8,447' ', 8,820 8,800 20 4,974 4,971 4 5,88" ID, 7.60" OD T Total Footage 950 Total Footage 82 New Perforations 7/3/2012 MO Perforation TVD Perforation From To Footage From To Footage 10,350 10,230 120 5,140 5,097 7 '0,120 9,910 210 5.089 5,076 13 A tii 9,450 9.390 60 5,048 5,043 5 as it 9,380 9,320 60 5,042 5,036 6 11111 ili 9,040 9.010 33 5.005 5.001 4 I I 9000 8900 100 5000 4986 14 Total Footage 580 Total Footage 4B 7" 261/ L80 Vam Top Production Liner from 4.867' TVD / 8,425' MD TOP to 5,1 12' TVD /10.498' MD TD 8 1/2" hole / Cemented . • • ' in L AMA SEAN PARNELL, GOVERNOR if 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 j g-- P.O. Box 190989 1 1 1 r Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Gas Storage Pool, CLU Storage 4 Sundry Number: 312-193 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. • erel et aiz K. sr - .n Co i.' sioner DATED this Cday of June, 2012. Encl. SCAB 1}',r' 0&t;,,'' . , . • • RECEIVED STATE OF ALASKA MAY 2 4 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25280 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: (17 —/C0 P' 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Cook Inlet Natural Gas Alaska,LLC Development ❑ Exploratory ❑ 211-122 3.Address: Stratigraphic ❑ Service ❑✓ , 6.API Number: P.O.Box 190989,Anchorage,AK 99519 50-133-20598-0000 ' 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 ElNo 0 CLU Storage 4 9.Property Designation(Lease Number): 10.Field/Pool(s): 5 Xe_)/ ADL 391627 - Cannery Loop/Sterling C pot71 s 3ivz 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): 10,500' . 5,112' 1 10,416' 5,108' none none Casing Length Size MD TVD Burst Collapse Structural Conductor 117.5 20" 117.5 117.5 n/a n/a Surface 2,467 13 3/8" 2,467 2,090 3,450 1,950 Intermediate 8,608 9 5/8" 8,608 4,921 5,750 3,090 Production Liner 2,073 7" 10,498 5,112 7,240 5,410 Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): see attached comp.sche. see attached comp.sche. 7"26# L80 8,425 Packers and SSSV Type: BHI 9 5/8"HR ZXPN Liner Top Packer Packers and SSSV MD(ft)and TVD(ft): Halliburton 7"WL FXE SSSV Pkr-8,425'/4,867' SSSV-1501150' 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program ❑� BOP Sketch ❑� Exploratory ❑ Development ❑ Service 2 • 14.Estimated Date for 15.Well Status after proposed work: Commencing11-Jun-12 Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned E Commission Representative: GSTOR 2 ' SPLUG ❑ 17.I hereby certify that the foregoinglis true and correct to the best of my knowledge. Contact t 7 cd-- '.-I-.� S -p-'h-3�� Printed Name M• ,-D)le-6r) S'-rG(,✓Y I Vl Oi Title V i L(�i Y f,)'CS-0,1 1 c/Zul I r ��r Signature 7/ /�iriz . � 44 ad'ne! Date �'/,`� (• 7"°". COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: A 2--93 Plug Integrity ❑ BOP Test 121 Mechanical Integrity Test ❑ Location Clearance ❑ Other: 45©0/35;9 13 6717 f --5 f Ne hi/y )r 5pz'e, or S ii,zdr c'et rcL Subsequent Form Required: ✓✓ /0 gill APPROVED BY /� Approved by: �� COMMISSION • THE COMMISSION Date: (' ' cot ll�lA�,, ryrypp rLG, G �j�`/ i ip ,v 3limsEa t0/2 wit/7-0 2- op ! rzlro f �� tt/` c ` Sub 't in_Duplicate ��^ • • 4 • Cook Inlet Natural Gas Storage Alaska, LLC Cook Inlet Naturaas3000 Spenard Road PO Box 190989 STORAQMain:907- AK 99519-0989 Main:907-334-7980 Fax:907-334-7671 www.cingsa.corn May 24,2012 RECEIVED MAY 242012 Alaska Oil and Gas Conservation Commission �+ 333 West 7th Avenue, Suite 100 AOGCC Anchorage,AK 99501 Re: CLU S-4 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-4. 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 Rick Gentges at 907-310-7322 or email to Richard.gentges@cingsa.com. Sincerely, hat e la44..esl,� M. Colleen Starring (/ Vice President Enclosure as stated • • CLU Storage 4 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%"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 10,416'MD/5108'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. • • i,►-- CINGSA PROJECT If COILED TUBING STACK UP Kenai,AK rt,3 .1 CT lnje«« e Heed CT larlong Franey ,° A. 4 06"Conventional Stripper 1 10-15 tt of TOO-lubricator ( \ 1 I i ii��;�, 7.06"Caribi RCN' 4, _ � 2.375-CIStrllg •., 7.061 SK flow unss w/wflel t.t* rA. 1W. 1.06"A WellU ,.— Well Clean Rig Up r_____7_717.!1- r""�am r„,„.,..",,,,„„ ...�..... a .rac„ar L MI :M_ J �p i�{. vw+uo rm..s. D4 I -e y ,l !'1a Hw� I •ax ore.w w. 5•"}----1 i as rt r....mar won.e WA :� �_ ----------- _ MOTE:w10 r..Ar. 109-1 _n= R--.,.'Y ttAQt�1 PYA T.TmaeaanoalYl no a .s.w.T +u.nun MONAD `_ AWAY num MAS{TAME 1 _ Weatherford _ -� ra`v A�{�{ 111161.711191.•=NM= •.mn+[MwTnH OMG.MI ,`-�,", R1.e-m ;T' r +wutoueu MOW 'urr"'"'O"i m.as Ac�fu. _ e. •,•'�' ..ow vcA.IN.oe.. raiMMiWrp MAIM AM ��jM!� near. _.::jt--� ■glltRlrf. 'n••'®u.YIIIN[ ���r'-L.�r ccas �R ww a..t' {14pM�.!Ora n.. v a .....�,,. w. N.T.S - � mu-wn- -e>.1,a 4 0 CI OSA CLU Storage 4 FMC Wellhead- 13 5/8"5000#Multibowl FMC Tree-7" 5000#complete with SSV Completion Schematic 2/29/2012 20" I33#X56 driven to 117.5'TVD/l 17.5'MD 7"Halliburton Wireline Retrievable SSSV(a) 150'TVD/150'MD 13 3/8"68#J55 BTC Surface Casing(ad 2,090'TVD/2467'MD _ 16"hole/Cemented to Surface 4— DV Collar @ 3,404' - i 7"26#L80 Vam Top ' Tubing a M4 7" x 9 5/8"Baker ZXP Liner Top Packer with 10'seal bore(c�;4,867'TVD/8,425'MD 9 5/8"40#L80 BTC Intermediate Casing C 4,921'TVD/8,608'MD 7"RN Nipple, 8,447 ° 12 1/4"hole/Cemented to Surface 5.88" ID, 7.60"OD MD Perforation TVD Perforation oefl 5S From To Footage From To Footage 10 10,380 9,880 500 5,106 5,074 31 9,630 9,590 40 5,061 5,059 2 9,460 9,270 190 5,050 5,031 18 9,170 9,130 40 5,022 5,017 5 9,040 8,880 160 5,005 4,984 22 Ti' ,820 8,800 20 4,974 4,971 4 Total Footage 950 Total Footage 82 I1 7"26#L80 Vam Top Production Liner from 4,867'TVD/8,425'MD TOP to 5,112'TVD/10,498'MD TD 8 1/2"hole/Cemented N . . • S 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) f mailto:victoria.ferguson@alaska.gov] 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 a(�alaska.gov 1 DATA SUBMITTAL COMPLIANCE REPORT 5/24/2012 Permit to Drill 2111220 Well Name /No. CANNERY LOOP UNIT S-4 Operator COOK INLET NATURAL GAS STORAG API No. 50- 133 - 20598 -00 -00 MD 10500 TVD 5112 Completion Date 10/24/2011 Completion Status SUSP Current Status GSTOR UIC Y REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: GRAM, CALM, RPC- SHM- SLM -CLM; BDCM, NPCKSM, DPEM 8 1/2" (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr • Data Digital Dataset Log Log Run Interval OH / Type Med /Frmt Number Name Scale Media No Start Stop CH Received Comments Rpt Report: Final Well R 0 0 Open 11/8/2011 Final Well Report EDv C 14909 Report: Final Well R 0 0 Open 11/8/2011 Final Well Report Log. Mud Log 2 Col 118 10500 Open 11/8/2011 MD Formation Log Log v Mud Log 2 Col 118 10500 Open 11/8/2011 TVD Formation Log Log/ Mud Log 2 Col 118 10500 Open 11/8/2011 MD LWD Combo Log Log / Mud Log 2 Col 118 10500 Open 11/8/2011 TVD LWD Combo Log Log ✓ Mud Log 2 Col 118 10500 Open 11/8/2011 MD Drilling Dynamics Log Log / Mud Log 2 Col 118 10500 Open 11/8/2011 TVD Drilling Dynamics Log Log r'' Induction /Resistivity 5 Col 118 10500 Open 10/21/2011 MD Multiple Propagation Resistivity Compensated Neutron Porosity Compensated Bulk Density Gamma Ray • Memory Log Log Induction /Resistivity 5 Col 118 10500 Open 10/21/2011 TVD Multiple Propagation Resistivity Compensated Neutron Porosity Compensated Bulk Density Gamma Ray Memory Log Log ,/ Induction /Resistivity 2 Col 118 10500 Open 10/21/2011 TVD Multiple Propagation Resistivity Compensated Neutron Porosity Compensated Bulk Density Gamma Ray Memory Log DATA SUBMITTAL COMPLIANCE REPORT 5/24/2012 Permit to Drill 2111220 Well Name /No. CANNERY LOOP UNIT S -4 Operator COOK INLET NATURAL GAS STORAG API No. 50- 133 - 20598 -00 -00 MD 10500 TVD 5112 Completion Date 10/24/2011 Completion Status SUSP Current Status GSTOR UIC Y Log Induction /Resistivity 2 Col 118 10500 Open 10/21/2011 MD Multiple Propagation Resistivity Compensated Neutron Porosity Compensated Bulk Density Gamma Ray Memory Log ED C Las 14914 Induction /Resistivity 118 10500 Open 10/21/2011 Multiple Propagation Resistivity Compensated Neutron • Porosity Compensated Bulk Density Gamma Ray Plus Graphics cgm, pdf Dir Survey (ASCII) ED C 21579 Miscellaneous 0 0 11/23/2011 Cementing Summary, Well Bore Diagram, Bit Record, Survey Report, Completion Report, As- Built, various Transmittal (PDF, XLS, DOCX Formats) 1 Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments �ttings 2470 10500 10/20/2011 1246 Cores and /or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 9/21/2011. ADDITIONAL INFORMATION • Well Cored? Y / N Daily History Received? Chips Received? pfd- Formation Tops (- Analysis e Y-ITI-. Received? Comments: Compliance Reviewed By: _ Date: ". ' AA �-- • • t SEAN PARNELL, GOVERNOR ij [F LAMA 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 i P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Pool, CLU Storage 4 Sundry Number: 312 -168 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, Daniel T. Seamount, Jr. Commissioner DATED this Z day of May, 2012. Encl. Cook Inlet Mural Gas 30 Spenard Road STD RA Anchorage, 1e AK :;�.� ;;� -.__ An, AK 99519 -0989 April 27, 2012 Alaska Oil and Gas Conservation Commission RECEIVE 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 APR 2 ± 7 2 Re: CLU Storage 4 AOGCC Application for Sundry Approvals Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) is requesting Sundry Approval to re- perforate CLU Storage 4. 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 May 1, 2012. The operations as described in the attached outline well procedure will take place in three phases. First the tractor tool will be run to TD with a gauge ring, GR /CCL, and junk basket to confirm wellbore access. Second, the tractor tool, perforating gun and a 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 400 -450 psi. The final phase will involve flowing the well back through the well pad separator and vent silencer 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. ) as.com. g Sincerely, . y. I M. Colleen Starring Vice President • ,� RECEIVED STATE OF ALASKA ✓' APR 2 7 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 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. ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Cook Inlet Natural Gas Alaska, LLC Development ❑ Exploratory ❑ 211 -122. 3. Address: Stratigraphic ❑ Service 0 - 6. API Number: P.O. Box 190989, Anchorage, AK 99519 50- 133 - 20598 -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 D CLU Storage 4 - 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 TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10,500' 5,112' 5,108' none none 10,416' , Casing Length Size MD TVD Burst Collapse Structural Conductor 117.5 20" 117.5 117.5 n/a n/a Surface 2,467 13 3/8" 2,467 2,090 3,450 1,950 Intermediate 8,608 9 5/8" 8,608 4,921 5,750 3,090 Production Liner 2,073 7" 10,498 5,112 7,240 5,410 Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): see attached see attached 7" 26# L80 8,425 Packers and SSSV Type: BHI 9 5 /8 "HR ZXPN Liner Top Packer Packers and SSSV MD (ft) and TVD (ft): Halliburton 7" WL FXE SSSV Pkr - 8,425' / 4,867' SSSV - 150'/150' 12. Attachments: Description Summary of Proposal 0 13. Well Class after proposed work: Detailed Operations Program IN BOP Sketch ❑ Exploratory ❑ Development ❑ Service El 14. Estimated Date for '441 2.., $ t "t L 15. Well Status after proposed work: Commencing Operations: X012 Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: 5 -(- ' WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: t�..� S c- k/Asar" - GSTOR El SPLUG ❑ 17. I hereby certify that the foregoing Is true and correct to the best of my knowledge. Contact — m on � "6"6,3c--99. 2 Printed Name A 1 /■n c■f„J Title /.9.,/ l 4.� Signature �jj� P hone Date 7/1,. fo/.,.n � ,G.r ( ?J i a2� , m/� COMMISSIO USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 5 l 2 - I a Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: /P-11- & / 1 APPROVED BY J Approved by: COMMISSIONER THE COMMISSION Date: / 2_, ! ( 1t 13 99, 1 \4§3 R'BViseg "I12 b I . r " 36)/! Submit in Duplicate { Ali ✓ I I vLr ORIGINAL • • RECEIVED CLU Storage 4 Outline Perforating and Well Clean Procedures APR U 2012 AOGCC 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 Schlumberger 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. Notify AOGCC of upcoming rig up and lubricator pressure test 48 hours prior. 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. DUMMY RUN AND 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. Pick up tractor tool, GR /CCL, and gauge ring and make a dummy run to TD to confirm wellbore access. 9. Tag Float Collar at 10,416'MD/5108'TVD. POH while slowly while watching line a -line tension. 10. Lay down lubricator with crane. 11. Make depth correlations for re- perforating. 12. Review Well -site procedures for explosive services. SECURE detonators will be used. 13. Arm guns (Follow the safety placard for SECURE detonators) . • 14. Lift lubricator with crane. Lift tractor, 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. 15. Test the Quick Test Sub 16. Open well -head and RIH. At 200 ft, switch from Safe to Operating mode. 17. Note: Depth of packer / tubing tail /well restrictions / well deviation 18. Correlate CCL /GUN to Reference Log (previous GR /CCL log). Go deeper than the perforated interval and pull gun up to the perforating interval. 19. Check Grease Injector for adequate pressure to maintain seal. Fire gun. 20. Check for Well Pressure loss /gain. POOH using caution at locations with restrictions. 21. At 200' STOP, check all that all safety switches are in the OFF position before proceeding to the surface with the tool- string. 22. Note: Always assume the gun(s) is live. 23. 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. 24. The following intervals will be re- perforated: 10,350' to 10,230' MD (120', 3 runs with 30' guns) 10,120' to 9,910' MD (210', 7 runs with 30' guns) 9,450' to 9,390' MD (60', 2 runs with 30' guns) 9,380' to 9,320' MD (60', 2 runs with 30' guns) 9,040' to 9,010' MD (30' gun) 9,000' to 8,900' MD (100', 3 runs with 30' guns and 1 run with 10' gun) 25. Repeat steps 13 -23 for subsequent perf intervals. Perforations 2 7/8" PowerJet 2906 HMX 4 SPF MD Perforation TVD Perforation From To Footage From To Footage 10,350 10,230 120 5,104 5,097 7 10,120 9,910 210 5,089 5,076 13 9,450 9,390 60 5,048 5,043 5 9,380 9,320 60 5,042 5,036 6 9,040 9,010 30 5,005 5,001 4 9,000 8,900 100 5,000 4,986 14 Total Footage 580 Total Footage _ 49 WELL FLOW /CLEAN UP 26. Flow well clean for one hour through gathering system, well pad separator, and vent silencer. Record pressures and rates. 27. Release a -line unit and return well to injection operations. �,. 0 • CINGSA 1 FMC Wellhead - 13 5/8" 5000# Multibowl CLU Storage 4 FMC Tree - 7" 5000# complete with SSV Proposed Schematic RePerf 4-26 -2012 20" 133# X56 driven to 1 17.5' TVD /I 17.5' MD ;i 7" 1-lalliburton Wireline Retrievable SSSV (a% 150' TVD /150' MD i � , a s ; 13 3/8" 68# J55 BTC Surface Casing (ti 2,090' TVD / 2467' MD 16" hole / Cemented to Surface DV Collar (cu 3,404' - ' 1 7" x 9 5/8" Baker ZXP Liner Top Packer with 10' seal bore (ci.; 4,867' TVD / 8,425' MD .% 9 5/8" 40# L80 BTC Intermediate Casing (th; 4,921' TVD / 8,608' MD 12 114" hole / Cemented to Surface 7" 26# L80 Vam Top Tubing Original Perforations 2 -29 -02 MD Perforation TVD Perforation From To Footage From To Footage 10,380 9,880 500 5,106 5,074 31 9,630 9,590 40 5,061 5,059 2 9 9,270 190 5,050 5,031 18 9,170 9,130 40 5,022 5,017 5 9,040 8,880 160 5,005 4,984 22 7" RN Tipple, - 8,447' ' 8,820 8,800 20 4,974 4,971 4 5.88" ID, 7.60" OD Total Footage 950 Total Footage 82 M ill , Proposed New Perforations 111 MD Perforation ND Perforation From To Footage From To Footage 10,350 10,230 120 5,104 5,097 7 10,120 9,910 210 5D89 5,076 13 0 9,450 9,390 60 5.048 5,043 5 1I 4 9,380 9,320 60 5,042 5,036 6 ilr NI 9,040 9,010 30 5,005 5,001 4 1 9.000 8,900 100 5,000 4,986 14 Total Footage 580 Total Footage 49 7" 26# L80 Vam Top Production Liner from 4,867' TVD / 8,425' MD TOP to 5,112' TVD /10,498' MD TD 8 1/2" hole / Cemented • • 1 CINGSA CLU Storage 4 FMC Wellhead - 13 5/8" 5000# Multibowl FMC Tree - 7" 5000# complete with SSV Completion Schematic 2!29/2012 t i t , 20" 133# X56 driven to 117.5' TVD /I 17.5' MD Li 7" Halliburton Wireline Retrievable SSSV L 150' TVD / 150' MD itt 13 3/8" 68# J55 BTC Surface Casing (a) 2,090' TVD / 2467' MD of 16" hole I Cemented to Surface li S i i ' ' 4 DV Collar @ 3,404' i ,. 7" 26# L80 Vam Top t Tubing it , 7" x 9 5 /8" Baker ZXP Liner Top Packer with 10' seal bore (a,` 4,867' TVD / 8,425' MD 5 9 5/8" 40# L80 BTC Intermediate Casing Cu), 4,921' TVD / 8,608' MD 7" RN Nipple, - 8,447' 12 1/4" hole / Cemented to Surface 5.88" ID, 7.60" OD /', MD Perforation TVD Perforation From To Footage From To Footage 10,380 9,880 500 5,106 5,074 31 9,630 9,590 40 5,061 5,059 2 9,460 9,270 190 5,050 5,031 18 9,170 9,130 40 5,022 5,017 5 9,040 8,880 160 5,005 4,984 22 MI 1111 ® 8,820 8,800 20 4,974 4,971 4 110 • A IN 0 Total Footage 950 Total Footage 82 1 1 7" 26# L80 Vam Top Production Liner from 4,867' TVD I 8,425' MD TOP to 5,112' TVD /10,498' MD TD 8 1/2" hole / Cemented . � • Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Tuesday, May 01, 2012 11:56 AM To: 'Richard Gentges' Cc: Ferguson, Victoria L (DOA) Seil Subject: RE: CLU S -4 Sundry Notice Procedure ( PTD 211 -122) Richard, You have verbal approval to perforate as per your sundry application. The permit should be ready for pickup in a day or two. Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) From: Richard Gentges [mailto:Richard.Gentges @cingsa.com] Sent: Tuesday, May 01, 2012 10:14 AM To: Schwartz, Guy L (DOA) Subject: RE: CLU S -4 Sundry Notice Procedure Thanks Guy. Will this email suffice for a request for verbal approval? If so, please consider this our request for verbal approval. From: Schwartz, Guy L (DOA) [mailto:guy.schwartz @alaska.gov] Sent: Tuesday, May 01, 2012 9:57 AM To: Richard Gentges Subject: RE: CLU S -4 Sundry Notice Procedure Yes.. got the procedure yesterday. I would request verbal approval if you are needing it by tomorrow. Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) From: Richard Gentges fmailto :Richard.Gentges @cingsa.coml Sent: Tuesday, May 01, 2012 9:55 AM To: Schwartz, Guy L (DOA) Subject: CLU S -4 Sundry Notice Procedure Guy Thought I would check and make sure the "official" procedure for re- perforating CLU S -4 found its way to you? Should have been dropped off with Jodie yesterday. Any chance we will hear something on approval by COB today? Thanks Rick Gentges 5/1/2012 • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE:Tuesday,April 24,2012 TO: Jim Re \/ gg I P17 4174-11 Z- P.I.Supervisor SUBJECT:Mechanical Integrity Tests COOK INLET NATURAL GAS STORAGE A S-4 FROM: Lou Grimaldi CANNERY LOOP UNIT S-4 Petroleum Inspector Src: Inspector Reviewed By,;_ P.I.Supry �Ja -- NON-CONFIDENTIAL Comm Well Name CANNERY LOOP UNIT S-4 API Well Number 50-133-20598-00-00 Inspector Name: Lou Grimaldi Permit Number: 211-122-0 Inspection Date: 4/21/2012 Insp Num: mitLG120422081408 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well - S 4 , Type Inj G 'TVD 4867 - IA 200 1750 1740 1735 - PTD 2111220 (Type Test SPT Test psi 1500 - OA 0 0 0 0 IntervalIMITAL — P/F P ' Tubing 688 688 688 687 Notes: Good solid test. - SCANNED 1J.A;-i' Tuesday,April 24,2012 Page 1 of 1 • • ( SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMIIIISSION 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 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, Cathy ' . Foerster Daniel T. Seamount, Jr. Chair, Commissioner Commissioner cc: R. Gentges, CINGSA • CL &t s-.s g Regg, James B (DOA) PrI) Z/ I /zw From: Brooks, Phoebe L (DOA) Sent: Friday, March 23, 2012 3:21 PM To: Richard Gentges " 1t * 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.GentgesCa>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 5 -4 tested 30 minutes ?; report only shows 15 min data. I went back and checked the drilling records and CLU 5 -4 was tested for only 18 minutes; no indication noted as to why. ✓ � Y • 5) We need separate reports for •h 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 211449). 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 it 2 • • • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanical Integrity Test Submit to: jim.regq @alaska.aov; doa .aogcc.prudhoe.bavOalaska.gov phoebe.brooks(d)alaska.gov OPERATOR: Cook Inlet Natural Gas Storage Alaska, LLC g 5/ZiS1 (1/ FIELD / UNIT / PAD: Cannery Loop Gas Storage - Sterling C DATE: 10/23/11 OPERATOR REP: Matt Federle AOGCC REP: Packer Depth Pretest Initial 15 Min. 30 Min. 45 Min. 60 Min. Well CLU S4 ' Type In). G TVD . 4,867' Tubing 0 3,110 3,110 - Interval 1 P.T.D. 2111220 ' Type test P Test psi ' 3000 Casing 0 0 0 P/F P - Notes: Test performed on 10/23/11 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 S4 ' Type Inj. G " TVD ' 4,867' Tubing 0 0 0 Interval 1 P.T.D. 2111220 '_ Type test P Test psi ' 1500 Casing 0 1,540 1,530 ' P/F P - Notes: Test performed on 10/23/11 while drilling rig was on OA location, immdiately after runninQtubing. Tubing pressure (7 ") registered 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 Casing P/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 0 = Differential Temperature Test Form 10 -426 (Revised 02/2012) MIT CLU S 10 • STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑ Suspended El 1b. Well Class: 20AAC 25.105 20MC 25 110 Development ❑ Exploratory ❑ GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ GSTOR n No. of Completions: _ 1 Service 0 Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Cook Inlet Natural Gas Alaska, LLC Aband.:2/29/2012 211 -122 / S (.Z G4/(0 3. Address: 6. Date Spudded: 13. API Number: So - J3 - 10547t - .36 P.O. Box 190989, Anchorage, AK 99519 9/28/2011 ffa At Mar. .ta1x 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 670' FNL 1762 FEL SEC. 9 T5N R11 W 10/17/2011 CLU Storage 4 Top of Productive Horizon: 8,578' MD / 4912' TVD 8. KB (ft above MSL): 50.5' 15. Field /Pool(s): 1333' FSL 2049' FEL SEC. 8 T5N R11 W GL (ft above MSL): 33' Cannery Loop/ Sterling C pool Total Depth: 10,500' MD / 5,112' TVD 9. Plug Back Depth(MD +TVD): 654' FSL 1442 FWL SEC. 8 T5N R11W 10,416' / 5,108' 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 281844.85 y- 2392882.52 Zone- 4 10,500' / 5,112' ADL 391627 TPI: x- 276336.389 y- 2389747.06 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 274425.256 y- 2389058.746 Zone- 4 1501150' ADL 230925 18. Directional Survey: Yes 0 No U 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 Togs 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 2,467 22 2,090 16" 433sx lead /324 sx tail 95/8" 40 L -80 20.5 8,608 20.5 4,921 12 1/4" Stage 1 -694 Iead,191 sx tail Stage 2 460 sx DV @3,404' Mt 7" 26 L -80 8,425 10,498 4,867 5,112 8 1/2" 296 sx 24. Open to production or injection? Yes pi 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" 8425 8425 / 4867 From To Footage From To Footage 10,380 9,880 500 5,106 5,074 31 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 9,630 9,590 40 5,061 5,059 2 9,460 9,270 190 5,050 5,031 18 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 9,170 9,130 40 5,022 5,017 5 9,040 8,880 160 5,005 4,984 22 8,820 8,800 20 4,974 4,971 4 Total Footage 950 Total Footage 82 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 - 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No ❑ Sidewall Cores Acquired? ❑ No ❑ If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lit • • : entrMience of oil, g s or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, phot.. - - : • a•oratory analytig,Cutp,pults per 20 C 25.071. RBDMS MAR 15 2012 4,,,,,,, \ nil & Gas Cans' Alas a Form 10-407 Revised 12/2009 CONTINUED ON REVERSE ,.. -- --- j . IL Submit original only • s 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ❑ Yes Ei 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 8543' 4902' Sterling C1 8578' 4913' Sterling C2 9544' 5056' Formation at total depth: Sterling C2 31. List of Attachments: Daily Reports, Well Schematic, Perforation Reports, Clean -up pressure chart, 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. Colleen Starring Title: Vice President Signature: / 1 qJj i. i4 ,4., 474 Phone: 907 277 -5551 Date: INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50 -029- 20123 -00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 12/2009 Cook Inlef NufuraGas Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 STORA Main 907- o 99519 0989 Main: 907- 334 -4- 7980 Fax: 907- 334 -7671 a www.cingsa.com March 13, 2012 EC !V Alaska Oil & Gas Conservation Commission 333 W. 7 Avenue, Suite 100 AP! F'` Anchorage, Alaska 99501 ; i r;si�a ail i��Iy. :,rrn;issi,r Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) ' -- _.._ Moorage Well Completion Form 10 -407 CLU Storage 4 Gas Storage Well Please find attached Well Completion form 10 -407 for CINGSA's CLU Storage 4 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 2/4/12 Rig Up SLB Coil. Run correlation log 2/5/12 Perforate 10,380' to 9,880' • 9,630' to 9,590' 9,460' to 9,270' 2/6/12 Coil leak RD 2/10/12 Install new coil 2/11/12 BOP Test. Correlation run. Perforate 9,170' to 9,130' 9,040' to 8,880' 8,820' to 8,800' 2/12/12 Blow down Well. RD 2/13/12 Set SSSV 2/22/12 Run Pollard's Sampler to 8811' - Recovered brine and perf debris 2/25/12 Pull SSSV. 2/25/12 Rig Up BHI Coil. 2/27/12 Spot foam pill on bottom. Blow well down. • Recovered 81 bbls brine. 1110 • AOGCC March 13, 2012 Page 2 2/28/12 Begin N2 injection -2500 SCFM - 1943 psi / 5000 SCFM - 2100 psi. Rig down 2/29/12 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, L ehe,reL - 144/ ( 4i/ M. Colleen Starring Vice President Enclosure as stated • • CINGSA CLU Storage 4 FMC Wellhead - 13 5/8" 5000# Multibowl FMC Tree - 7" 5000# complete with SSV Completion Schematic 2/29/2012 A 4 , , , y u 20" 133# X56 driven to 117.5' TVD /117.5' MD t ,f., i - , N .4. 7" Halliburton Wireline Retrievable SSSV @ 150' TVD /150' MD 0! 1 . 1 ' t 13 3/8" 68# J55 BTC Surface Casing @ 2,090' TVD / 2467' MD 16" hole / Cemented to Surface x .1 11 - DV Collar @ 3,404' 7" 26# L80 Vam Top i Tubing ov 7" x 9 5/8" Baker ZXP Liner Top Packer with 10' seal bore @ 4,867' TVD / 8,425' MD 0 ' ' V. 9 5/8" 40# L80 BTC Intermediate Casing @ 4,921' TVD / 8,608' MD ) 1 'M 7" RN Nipple, - 8,447' 12 1/4" hole / Cemented to Surface 5.88" ID, 7.60" OD MD Perforation TVD Perforation From To Footage From To Footage 10,380 9,880 500 5,106 5,074 31 9,630 9,590 40 5,061 5,059 2 9,460 9,270 190 5,050 5,031 18 9,170 9,130 40 5,022 5,017 5 9,040 8,880 160 5,005 4,984 22 "" 8,820 8,800 20 4,974 4,971 4 Total Footage 950 Total Footage 82 7 11 26# L80 Vam Top Production Liner from 4,867' TVD / 8,425' MD TOP to 5,112' TVD /10,498' MD TD 8 1/2" hole / Cemented •CINGSA - DAILY DRILLING REPOR'• Date 2/5/2012 Well Naree CLU Storage 4 BHA - DSM Days: John Nicholson viins 'fiept 10500 'Local ' ' Kenai, AK Target 10500 Cell Phone: (907) 299 -4306 Depth: Ftg/24h€ Fi C Loop / Sterling C Ri g SLB Coil DSM s. 0 Contractor: Nights: Days once 27/ 1 CT 1 Ptessnt P/U #1 Gun Run Rig Phone:' (907) 398 - 3156 Cell Prone', Spud I Operation: DRILLING DATA BIT # SIZE MFG TYPE: SER # JETS IN OUT FEET BIT GRADE TOTAL HOU FTIHR CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH j CEMENT COMPANY 1 DATE Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1-Oct Intermediate 9.625" 40# L -80 _ BTC 8608' _ Schlumberger 12 -Oct iner 7" 26# L - 80 Vam Top 10498' Schlumberger 20 - Oct Tubing , ; 7" 26# L -80 Vam Top 8424' N/A 23 -Oct ## - - ; ' , -- PIIII ' „ ',<,,'r . "Tt . .... , ,, ,,, , i 'ADDITIVES: ITIVES;'' �� I d , , #m Pti '�AANF ;- : PU�fA�iF 0 EiDH"F ��� � €', 1° . ''/,',''''''''' . , 138.00 U, PU tPTYPE ' Pi�W;PE. 0 FUNNEL VI 10.00 .�. r %- - -''' LINER SIZE LINIEft tZE 0 ' R600/R300 . .. ac.° /%. , , 57.00 STOKELNCTi3 STOKE LNGTH 0 R200/R100 e ® i; 3309.00 SPM SPM R6/R3 euSPt A ` -. 253.00 ;c f„ 'S - PV c0N0ol { r. .. . . , ; // 3.00 71i M VP SpDIU s 24.00 PSI - GELS FL 4 ? 2i4 153.00 'TM, AiN STMS UP MIN - API FLUID LOSS PA, ,. , 4 gi viz 144.00 T *T , tm 34s - CAKE APH /HT CF-60 11 33.00 Po souos r MYACIDE GA25 12.00 DtL/WATER SCREEENKLEEN 138.00 i 1W' 'te-: SAND KLA -GARD =11 21.00 x;41 I ....,, . !," i ; ` LICE PH POTASSIUM CHLORIDE ;- 1086.00 ei , - . . . 0 ,,, !. - Pf/Mf SAFE -CAR 40 , . 709.00 P Q ,.; - t - CHLORIDES -■ SODIUfut ARBONATE 76.00 €SEE - ''a CA BARITE 458.00 ® ,�' „' - ice,. ,y,. - VOL. PIT - (BBL) RESINEX 120.00 r '' - - HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) 6061.47 , ;::150 < _t. ,,,,,,, , - API SCREEN Daily Mud Gum. - - '' ACTIS tTV SUMMARY 1 TIME SUMMARY Start Finish Hours Descri.tion Detail Dal Cumulative 6:00 Move CT unit on to CLU -4 Move wellhead working platform RU /RD 9.50 I 146.50 Remove bop stack and set on CLU - 4. Move in C pumps Drillin. _ L 139.00 and power pack. Install hyd. And controll lines. Set berms Service /Repair Rig 17.50 15:30 9.50 Run 2" flow lines for CLU # 2. Rig up complete Surveys , 0.00 15:30 19:00 3.50 Cut 100' from coil and re -head Trips 6.00 206.50 19:00 Test bop and all related components 250/4000 all passed Change BHA 0.50 38.50 21:00 2.00 Test witness waved by AOGCC Bob Noble , aSing 81.75 21:00 P/U memory CCL -gamma logging tools RIH Tag up At £`- €rtentincg .', ' 21.00 10,373 CTM W/ correction 10416.3 Recovered good data Legging 6.00 12.75 3:00 6.00 POH Lay down logging tools NU /ND Test g 2.00 62.00 3:00 5:30 2.50 Set injector down, PJSM: loading guns TO pert. 10380 9880 DSTJCore 0.00 5:30 6:00 0.50 P/U Guns Well Control 0.00 WOO 0.00 P&A 0.00 Safety Meetings 6.00 Drilling Cement 4.50 Circ/Other 55.25 7 "I r See notes below in Remarks & Comments section: T® 24.00 815.25 ' , ... BOTTOM HOLE ASSEMBLY ., or( 1 ITEM "°__ corn - 1... VET [ OD. J 1.11. I; GAUGE 1 NECK - LENGTH [TOTAL,f 'N 1 0.00 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH o.00 l , t REMARKS & COMMENTS DIESEL Note spot 2bbls diesel in tubing and 7 "x 9 5/8 annulus ( freeze protect) Diesel on Location' 5,240 Pollard Pulled Sleeve and replaced with 5.250id sleeve Diesel UJsed.Last 24 850 Called AOGCC gave notice of BOP test 0230hrs 2-4 -12 Witness waved By Bob Noble @ 0700hrs Diesel Received 0 Draw down CLU 2 Initial well head pressure 1600psi Final psi 80 I TOTAL DIESEL, 4,390 - ' r PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS _ TOTAL COMPANY NOTE COUNT HOURS TOTAL SLUMBERGER Rig Crew 10 12 120 12 0 PRA DSM 2 24 _ 48 12 0 PRA Safety 1 1 1 12 0 EATHORFORC Testing 4 12 48 12 0 Weaver Loader 2 12 24 12 0 Peak Crane 4 12 48 8 0 AIMM Roust /vac 5 12 60 - TOTAL COUNT 23 TOTAL MAN HOURS 349 •CINGSA - DAILY DRILLING REPORT Date: 2/6/2012 Well Name CLU Storage 4 ' tir' a - DSM Days: John Nicholson 10500 Location', Kenai, AK 10500 Cen Phone: (907) 299 -4306 s „',E ;' 0 FiokJ/Paal: Cannery Loop / Sterling C SLB Coil Cordror Nights: D Oiri'er s 27/ 2CT Pres ent Lay down Spent guns run #2 N', (907) 398 -3156 Cell Phone. Ihipit;'- Operation: 3, : ,,j, x. ,, ,, , ,,,,. � ;', alb "' "'R � ,� . ?our '4 PE'ET 5 l. r f, m r ,r G 3N1 s 1 20" � 133# X -56 Welded 97' N/A July ' 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct eddrl;' - -? 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct 7" 26# L - 80 Vam Top 10498' Schlumberger 20 -Oct 7" 26# L - 80 Vam Top 8424' N/A 23 -Oct ••, ':' ',It' ,,, -.: ., _,. +• ; ; MUD PROPERTIES: MUD ADDITIVES:,', Aa; ,,, "r lath - it:47> i . 0 WEIGHT GEL 5010 b: ± k, 138.00 - ° 0 FUNNEL VIS S'; .;- '. SO lb • W; 10.00 - 0 R600/R300 ciC 57.00 :.,. .w,.' - S,r':°' '''< 0 R200/RICO LOTORQ 3309.00 861123 ASPHASOL SUP�E 253.00 eP! y :/ - - PV t;;aNQ 3.00 SI m SS.� c.. L ,,4' - o ~M " - VP �+ { 8ODIUM nT',4w16e ITE 24.00 - ' I - GELS F LOWZAN 153.00 Mik: - BTM& rN', - API FLUID LOSS PAC 144.00 ? Ciro MIN ,,,' - TOT CIR MIN .; - CAKE APH/HT ''. GF DE6 . �:i ;"' % 33.00 ` ®P: - AVDP: SOLIDS t Y lD '.4Y '. -.. 12.00 AVDC. - AVDC OILIWATER S E N)< L EEN , 138.00 - AVDC: - SAND O, 21.00 r gOO„L;,STRtNG & HY "'; ' % y -t rr M ,,.,,w;,,, :, MEM • � ifr.it.N%+l 014,r2IbE ��: ' ,, 1086.00 ,zo ` ING WT. '" - WO8 - OEM . ,' , ,, ,,.,..',, 709.00 - BPM - - CHLt7RI0E i ARBOO -t 76.00 ' ; r, t t 4 s, ,<r „ .* GA mss•; 458.00 i/ , 120.00 PL' _ _ VOL PIT- (f3BL} S r E OLE - (BBL} « k r 6061.47 � �„ , ,,, t - API SCREEN e ' sr' - - ' ' A - TIVIT V SUMMARY Start Finish Hours Description Detail 1 Daily .1 Cumulative 6:00 Continue P/U SJS Perf guns total of 505.28' 24 guns 4 spf RUlfic I 9.50 156.00 8:30 2.50 4.72 od 72deg phase. With firing head and safetyjt. Drilling 139.00 8:30 10:30 2.00 Make up MHA Test coil to 4000psi. Make up to Gun BHA ServiCe/Repair Rig 17.50 10:30 RIH W/ gun run #1 to 10416' ta. bottom Space out and Surveys 0.00 _ Confirm shot depth. To place perfs F/10380- 9880' Pressure Trips 4.50 215.50 up on coil and annulus 700psi bleed off and pressure up Chan •e BHA _ 2. _ 42.00 13:30 3.00 4 times. Bleed off all pressure wait 2min. Confirm guns fired Casing 81.75 13:30 - 16:00 3.50 POH with spent guns on coil F/ 10416' Cementing_ 21.00 21.00 16:00 16:30 0.50 Monitor well with guns at 300', no flow (rgrin9 T 12.50 16:30 17:30 1.00 R/D injector head and set on ground rack NU /ND Test 7.00 73.00 17:30 21:00 2.50 Lay down spent guns, all shots fired. CAST /Core 0.00 21:00 PJSM: Make up Gun run #2 BHA 230' 4.72od 72deg.guns VIleilC,ontrol , 0.00 W/ 148.80' blanks safety jt and firing head to pref F 9630 - 0.00 0:00 3.00 9270'. P &A `" 0.00 0:00 1:00 1.00 P/U injector PT MHA Fluid pack coil, Make up to guns Safety Meet, inRS " 1.00 8.00 1:00 RIH W/ gun run #2 set to firing depth of 9630.8 Drop ball Drillinn Cement 4.50 6:00 5.00 Seat at 46bbls PS 2600 Guns fired POH W/ spent guns Circ /Other 55.25 24;00 F/ 9630.8 TOTAL 24.00 839.00 BOTTOM HOLE ASSSE1BLV ri% y '; ?' i ITEM CONN DOWN CONNN UP VENDOR 0 . D . to ., . GAUGE NECK LENGTH TOTAL LENGT 1 0.00 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH 0.00 '�' 1F, ,,,; REMARKS & COMMENTS DI SSEL BOP Drill with safety joint Diesel on Location 2,024 Slight losses after perforations dil Used Last 24 865 Diesel Received 0 Coil has a pin hole at 5300' into coil. TOTAL DIESEL', 2,024 ,,,,?,;,,,,;,,,I,',,,,,,,4- .f.r, PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL SLUMBERGER Rig Crew 10 12 120 _ 12 0 _ PRA DSM 2 24 48 12 0 PRA Safety 1 1 1 12 0 ✓VEATHORFORE Testing 4 12 48 12 0 Weaver Loader 2 12 24 12 0 Peak Crane 4 12 48 8 0 AIMM Roust /vac 5 12 60 - TOTAL COUNT 23 TOTAL MAN HOURS 349 •INGSA - DAILY DRILLING REPOR• Rate: 2/7/2012 Well Name CLU Storage 4 BHA # - DSM Days: John Nicholson Target t rrent Depth: 10500 Location: Kenai, AK Depth. 10500 Cell Phone: (907) 299 - 4306 H' Ftg/24hrs. 0 FieId/Pool: Cannery Loop / Sterling C Contractor SLB Coil Ng '/mays Since 27/ 3CT Present Suspend ops Coil Repair Rig Phone: (907) 398 - 3156 Cell Phone:' 5,,„ „, Spud !! LUNG % Operation; LUNG DATA Z / A ., SIZE JETS' IN OUT FEET BiTGRADE TOTAL HOURS FT/HR $ ', S.� WEIGHT GRADE THREAD DEPTH ;d t m :,; . 20" 133# X -56 Welded 97' N/A July ,a „, � j $', ,,f :% 13.375" 68# J - 55 BTC mod 2467' Schlumberger 1 -Oct iota;%.;, 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct ' 7" 26# L - 80 Vam Top 10498' Schlumberger 20 -Oct ' 1 7" 26# L -80 Vam Top 8424' N/A 23 -Oct .� ';,,; L,"' - l:i b1;74 'Ai l . , M UD ;A DO ITi lti S . , - ,Dal „ Cumulative , % :MAN ` 0 WEIGHT GE 501b.4u+ " /� 138.00 'i„ ' ,,, '',' - ° 0 FUNNEL `<f15 S. ASH SO II) bag} 10.00 0 8600113300 CAUSTIC 57.00 2 , , e 0 R200/R100 LOTORQ 3309.00 '°' = :'�� %: - - R6/R3 ASPHA " 253.00 - Pv CONDOR 404 3.00 ,,,'a, ::;,,i,„ - ,t, g .. a, - YP SODIUM METABISSULFITE 24.00 i , GELS FLOWZAN 153.00 w --t,ti,i,405ttivx,aarA f ; EE. ; ' API FLUID LOSS PAC 144.00 ' -� % - 'I'®, , € CAKEAPH/HT F - DESCO11 33.00 ' ' SOLIDS MYACIDE GA25 12.00 F D1LAWA S CRPCENKI EEN 138.00 ' D KL -CARD 21.00 g ii ,sv ,, °dt ► ', POTASSIUM CHLORIDE 1086.00 . . z x " W - • - '''1' / $AI CARS 40 709.00 Pi . , . ` a ,°,- " BICARBONATE 76.00 S 458.00 „, a d ' s , ; j 120.00 DPOD - E - - HOLE (BBL) « e 6061.47 DGOD - - API SCREEN i2: Unt ' ' , - - A QTY SUMMA' v SUMMAR; Start 1 Finish 1 Hours 1 Description ;". 7 ly f Cumulative 6:00 7:00 1.00 PJSM: R/D injector head and set on ground rack. Install a 9.50 146.50 TIW valve on safety joint. f E +,i„FA f 139.00 7:00 10:30 3.50 Lay down gun run #2 bha '`` +. : 'g 17.50 10:30 Blow Down surface lines Install injector head & blow down . '( ''" y - 0.00 coil with nitrogen. Load out all spent guns and haul off all Tri.ss ? 1 4.50 211.00 excess fluids.Remove coil end from injector head. Clean up Change BHA 2.00 40.00 Baffel tank. Load out 3 iso tanks with waste fluid ship out Casino 81.75 Secure location, release Weatherford testers, Aimm, Weaver Cementin. : 21.00 forklift operator and all schlumberger personal. Logging 12.50 _ 17:30 7.00 Remove coil reel and load out. NIJ1ND Test 7.00 67.00 Suspend operations At 17:30hrs DST/Core 0.00 Well Control 0.00 WOO 0.00 t &A 0 Safety Meetings ..._ " 1.00 7.00 Drilling Cement 4.50 Circ/Other 55.25 E y ...., a TOTAL 24.00 863.00 "; - " .; - r;' BOTTOM HOLE ASSEMBLY ,, N CONN UP VENDOR O .A. l,D, GAt/ QTY " .. ..,.. , y ,,, , ITEM � � • , GAUGE ' NECK i:.ElzlGTH TOTAL LENGTH: 1 0.00 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH 0.00 REMARKS & COMMENTS DIESE ; Dieset On Location 2,024 Diesel Used t fit. 24 645 -,fv Diesel Received' 0 i TQAL DIESEL 1,424 PERSONNEL ON LOCATION ' , ' ." COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL SLUMBERGER Rig Crew 10 12 120 _ 12 0 PRA DSM 2 24 48 12 0 PRA Safety 1 1 1 12 0 ✓VEATHORFORC Testing 4 12 48 12 0 Weaver Loader 2 12 24 12 0 Peak Crane 4 12 48 8 0 AIMM Roust/vac 5 12 60 - TOTAL COUNT 23 TOTAL MAN HOURS_ 349 1 INGSA - DAILY DRILLING REPOR Dates 2/11/2012 well Name CLU Storage 4 BHA DSM Days: John Nicholson Target Current Depth: 10500 f, / Kenai, AK Depth 10500 Celi Phone: (907) 299 -4306 F'tg /24hrs. , 0 Cannery Loop / Sterling C Con for SLB Coil Nlgitts: Mike Grubb Days Since 27/ 4CT ` R/U to test BOPE Rig Phone: (907) 398 -3156 CO Phone: (907) 431 -7988 Spud , a , , . . ., ' '.7 : 1 DRILLING DATA - -. _. BIT # r, .. ,; „ MFG - , TYp,E.,.... ,,,,,,,,,,,/,,,,,,,,„ ,, DTs IN OUT , KfJ,,, '° CASING 1 SIZE 1 WEIGHT I GRADE 1 THREAD 1 DEPTH 1 ''''''''''eEIVIENT C<YIVIPANY 1 DATE 1 ,; CoodualorI 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J - 55 BTC mod 2467' Schlumberger 1 -Oct intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Liner 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct Tubing 7" 26# L -80 Vam Top 8424' N/A 23 -Oct t UUMP #1 PUMP # 2 , ' ' ' Po a . -7 . TlE8. ' illy ADDITJVES: D a ,'; " l < tathi ' '. PIMP_ PUMP 0 e lb 138.00 1 PIjMF _ PUMP TYPE 0 t UNPIEk Wl5 .; < , , . 10.00 LIf SZE ... - LINER SIZE 0 R600/R300 57.00 STOKELNIGTH' -STOKE LNGTH 0 R2o0/R1o0 w 0 6m ,. 3309.00 SPM R6/R3 r=z,s '` 253.00 ° M �- - GPS - CONm � ) 3.00 - GPM - Y® F L}DIU 153.00 ‘i>' - .7M7,4 - API FLUID LOSS PAC' - 144.00 ifitItt, CAKE APH /HT . Ott, A ' 33.00 MY: •E GA26 /, ��a . ° . Po SOLIDS 12 A RC • ii Gi a OIiJWATER d EENKLEEN ...e..../, / 4 138.00 ,. a. SAND .t ' <.., i, 21.00 '%''-''''%-'5'-"/' 4 }> 4 f Y `' " „'.. PH .'_� k"`g+ 'P # 1086.00 17 - . i � - Pt/MI ; r:„ f N2 709.00 I %// - CHLORIDES SODI€ M BICARBONAtE 76.00 E ''' .. Ik" £ °''',, „'' - ,,,, :) ,.: - CA BARITE ,..I 458.00 . r i ' - VOL. PIT (BBLI RESINE.X "' ' . ' . 120.00 A .a. ; ' - HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) 6061.47 . . - DIET VEE - API SCREEN Daily Mud Cum. - - F " _ ACTIVITY SUMMARY TIME SUMMARY ;; Start Finish Hours Descri.tion Detail Dal Cumulative 6:00 Start preping coil for installation of new reel. R/D 2" flow line RU /RD 18.00 155.00 from CLU -2. Run 4" flow line from P- tank to manfold. Drilling 139.00 Set up heater on CLU -4 and set heater on CLU -2 to thaw Service /Repair Rig 17.50 out frozen control line. Unload motor jars and tool for cement Sun/as 0.00 18:00 12.00 clean out on #3. Spot and set catwak and pipe rack on CLU4 Trips 211.00 18:00 0:00 6.00 Wait on New coil from North slope. !e BHA 38.00 0:00 PJSM, unload and spot new spool on carrier. Plumb in and '6 , ' ., 81.75 2:00 2.00 function test reel. ri '' 7 "' 21.00 2:00 5:00 3.00 Stab coil into injector head and make up. . '' 12.50 5:00 6:00 1.00 Pick up injector head and make up connecter to tubing. a o 60.00 ' " 0.00 Well ,.� , �I , 0.00 Wpcoal ";' 6.00 6.00 "RSA //o r 0.00 `ro .Y r r wy, e 6.00 ":;'€ % 4.50 . a , ':i, 55.25 24.00 %; OTAL ' ", ','' ' ,,, , 24.00 887.00 BOTTOM HOLE A " EMBLY ; *I° QT ' ITEM CONN D NNN CONN UP VENDOR 0.0. LD, GAUGE 1" C'' ' LEN 01" , leg . TN, 1 0 0 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH o.00 f, ";:t "mw. „ *COMMENTS DIESEL 1. ,.,.,.,.,• • Called AOGCC Jim Regg For BOP test due 2 -11 -12 Witness waved @ 12:45hrs 2 - - Diesel cat Location, PJSM before any change of work Diesel Used Last 24 300 Temp 33 degrees Diesel Received 2,000 TOTAL DIESEL 3,278 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL SLUMBERGER Rig Crew 10 12 120 Schlumberger guns 0 PRA DSM 2 24 48 Schlumberger logging 0 PRA Safety 1 1 _ 1 0 EATHORFORC Testing 4 12 48 0 Weaver Loader 2 12 24 0 Peak Crane 4 12 48 0 AIMM Roust /vac 1 2 2 - TOTAL COUNT 23 TOTAL MAN HOURS 291 •INGSA - DAILY DRILLING REPOR• - Date: 2/12/2012 well Name CLU Storage 4 BHA #: - DSM Days: John Nicholson Target Ctirxr�n Kenai, AK Depth Depth, 10500 Loc aEon: : 10500 Celi Phone:: (907) 299 -4306 Ftg/24 0 Field/Pool: Cannery Loop / Sterling C Rig SLB Coi DSM M Mike Grubb Contractor; Nights: gays Since 27/ 5CT Present Evacuate well with nitrogen Rig Phone:; (907) 398 -3156 Cell Phone;' (907) 431 -7988 Spud Operation DRILLING DATA S gifts ` rr ft MFG TXt' �� '° # JETS', IN OUT FEET BIT ; CASING T S I WEIGH 1 GRAD ] THREA DEP I CEMENT COMPANY - 1 DA 1 ; %onductor; `', 20" 133# X -56 Welded 97 N/A July TE 13.375" 68# 'ILL---588500 BTC mod 2467' Schlumberger 1 -Oct s� - 9.625" 40# BTC 8608' Schlumberger 12 -Oct -• 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct 7" 26# Vam Top 8424' N/A 23 -Oct Ml P ROPS • � . .... . e .. p y� s �y .T. � u. ...1 . . , ,,,,;,n,,,;i,'n ,i,,, ... 3 � ,: � .� � ...� 4"u��I(iItIW� .4 > ,/f' U.MM4P� 0 WEI HT ', GAL gfSt 138.00 A - I , 0 FUNNEL ASt sti ..� a -.• 1 0.00 /� - 57.00 - y, ,• C 0 `• 4 E 3 f ''.., CAUSTIC f S � LNf3 0 R2001R106 LOTORO 3309.00 / - iii ASPHASt L SUPREME � 253.00 , c ", - ";;;:',-;;','4 ' U; , « s 4{)A 3.00 f sf t' f' YF METAISULI ITS 24.00 < � �; sW�AN i a ' , 153.00 � - � � � - � E3;, ���� ��ii 144.00 � # � tit3' AtU _ OF [ E7k` %a 33.00 i :GR2 12.00 glLfwATER SE At i 0 138.00 AVDC: SAND KLA 21.00 s ,,, DRILL STRING & HYDRAULIC PH POTA ,0 t oe � 4 " 1086.00 KK SAFE-CARS 709.00 �`� C H L ORIDES SOtIU BICA RBONATE i 76.00 CA SARR E 458.00 °•; , E =,' OL.PIT -(BBL} RESINEX 120.00 r ; HOLE - (BBL) led (BBLS hau by AIMM }', 6061.47 •O ,,, , „ j VEL API SCREEN Daily. Mud Cum. - - ' ACTIVITY SUMM j TIME SUMMARY start 1 Finish ] Hours . 1 Descr 'Detail 1 Dairy 1 Cumulatitre 6:00 8:00 2.00 Test BOP and all related Components 250/4000 p erform RU /RD 155.00 Accumulator drawn test all passed Drilling 139.00 8:00 Remove injector head from well head. Install memory logging Service /Repair Rig 17.50 tool to MHA. Make up injector head Surveys 0.00 RIH with memory logging tools on coil to 9000', Log up F/ Trips 211.00 13:00 5.00 9000' to 6000' POH with tools Change BHA 38.00 13:00 Pull injector head, remove memory tools. Set head on _Casing 81.75 14:00 1.00 ground frame. Cementing 21.00 14:00 PJSM: P/U 4.72 4spf 4505 PJ Schlumberger gun bha set Logging 6.00 _ 12.50 15:30 1.50 f o r perforating F/ 9170'-8791' total of 1 8jts. 406.12 NU /ND Test 2.00 62.00 15:30 17:00 150 P/U injector head and make up coil to Gun BHA DST /Core 0.00 17:30 19:30 2..00 RIH W/ Gun run 3# on coil, set on depth Well Control 0.00 19:30 22:00 2.50 Circulate ball and fire guns. Check flow, poh F/ 9170' Wocoit guns P &A 0.00 11.50 11.50 22:00 23:00 1.00 PJSM, Remove injector head, 23:00 2:00 3.00 Un lo a d g uns , all fired Safety Meetings 6.00 2:00 3:00 1.00 M/U injector head,install nozzle Drilling Co men 4.50 3:00 6:00 3.00 Test lines, blow down reel at surface,RIH evacuate well Ciro/Other 4.50 61.25 1 24 00 TOTAL 24.00 911.00 BOTTOM HOLE ASSEMBLY _ QTY ITEM CONN DOWN CQNN UP VENDOR Q.D I.D GAUGE NECK. LEI }i TOTAL LENCnTH' 1_ 0 2 0. 00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 0.00 11 0.00 12 BHA TOTAL LENGTH o.00 REMARKS & a0VIMENTS DIESEL Called AOGCC Jeff Jones and gave notice of pending BOP test for CLU -3 13:45hrs 2 -11 -12 Diesel on Location 3,578 Wet control drill Diesel Used Last 24 1,434 Note coil cost resume at 14:00hrs 2 -11 -12 Diesel Received TOTAL DIESEL 2,144 , � i �, , `I PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE CO UNT HOURS TOTAL SLUMBERGER Rig Crew 10 12 _ 120 Schlumberger guns 2 12 24 PRA DSM 2 24 48 Schlumberger logging 1 8 8 PRA Safety 1 1 1 0 • VVEATHORFORE Testing 4 12 48 _ 0 weaver Loader 2 12 24 0 Peak Crane 4 12 48 0 AIMM Roust /vac 2 12 24 - TOTAL COUNT 26 TOTAL MAN HOURS 345 •CINGSA - DAILY DRILLING REPOR Date: 2/13/2012 Well Name CLU Storage 4 BHA #: - DSM Days: John Nicholson r {" _; Target 5 $ 10500 Location: Kenai, AK Depth: 10500 Cell Phone: (907) 299 -4306 0 F Pekll1?oo Cannery Loop / Sterling C Rig SLB Coil DSM Mike Grubb r contractor: Nights: ice'' s� - /' 27/ 6CT P Release rig to CLU -3 1200hrs Rig Phone: (907) 398 -3156 cel Phone (907) 431 -7988 vi Slit - , SIZE MFG 7'YI9E SER # JETS, IN GOT FEET B TGRADE TOTAL HOURS Tr CASING .... WEIGHT GRADE THREAD, DEPTH ;' „ ' CEMENT CQMPANY DATE onduotor: 20" 133# X -56 Welded 97' N/A July a 13.3i'5" 68# J 55 BTC mod 2467' _ Schlumberger 1 -Oct e 9.625" 40# L -80 _ BTC 8608' Schlumberger 12 -Oct CIO/ 7" 26# L -80 Vam Top 10498'_ Schlumberger 20 -Oct ;, 7" 26# L -80 Vam Top 8424' N/A 23 -Oct '; , 1 ,,,,s ....... PUMP', 02 ,%.. MUD PROPERTIES: MUD ADDITIVES: 1 Daily [Cumulative PUPSNIA i ', PUMP MANE I 0 WEIGHT GEL 58 lb bag) _ 138.00 _ PUMP TYPE 0 FUNNELVI5 S'. ASH SQltt 10.00 j ,�81ZE E. "- 1 A ! 0 R600/R300 CAUSTIC 57.00 ; `��t, 0 R200/R100 LOTORQ 3309.00 SPM z j - S° - R6IR3 ASPHASOL SUPR M 253.00 y, D C ONDOR 404 3.00 * >' k ,.,. ii - - YP SODIUM METABtSULFIT 24.00 R6f t1 F LOWZAN 153.00 r ��, I U P MIN' API FLUID LOSS PAC 144.00 70 ' CIR MIN'', ? ' T CIR MIN fiKE APHfHT GF -DESCQ 11 33.00 AVDP: •P :, . / %' MYACIDE GA25 12.00 . AVDC: » `' , . SCREEENKLEEN 138.00 C: • , • KLA - CARD ' 21.00 , €. ; ' 4 • m. , FI ,.O`TASSIUMM C L, DE 1086.00 ¶I215t W€ t 1' 19994 t ® . 709.00 r CHLORIDES e• r:" s ®. _ 76.00 •�a1�....: R * TI A CA 458.00 : � � 1111P ' Us l„, PIT. ;�EfBt..? ', RESIN ,4; ,'„ , , / 120.00 .' »;; . „ , SS f OP w BL) SOLIDS "i M 6'haule by 6061.47 bD � R , ' ` , Daily Mud Cum v T ; .m,., r, 1 e „� 'W° • ai i ., '' ! r .. K „� s i 5 _ ° ..... 6:00 Continue RIH evacuate well with n pump 155.00 at 40 fpm to 7000' stop and let hole unload, continue blowing a `` . 139.00 down well to 8700' unload well, continue N2 blow down to ervice /Re.air Ri. 17.50 10355' no problem with pack off or increase in pressure Surve s 0.00 circ psi at 10355' 766psi. Poh blowing down well to 7000 Tri «a 211.00 drag on pipe increased 6k while pulling off botton hole clean Chan.e BHA 38.00 out of fluids. POOH F/ 7000' to SFS. Hole stable With 16psi Casin• 81.75 at surface. Monitor well, rig down injector release rig to Cementin 21.00 12:30 6.50 CLU -3 at 1230hrs L.. «.in. , 12.50 NU /ND Test 60.00 DST /Core 0.00 Well Control 0.00 Wocoil •alts 0.00 P &A 0.00 Total N2 pumped 4300ga1. Safe Meetin• 3 6.00 Well head pressure at 12:00 16psi Drilling Cement 4.50 Note: release coil to CLU -3 @ 12:30hrs 2 -12 -12 lrc/Other 66.6500 61.25 a TOTAL_ 917.50 BOTTOM HOLE ASSEMBLY ,,,,,, �"�,,,,,,,, ITEM CONN DOWN CONN UP 'i VENDOR Q.D. I.D. GAUGE NECK' LENGTH TOTAL- t,ENCaTti' 0.00 1 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 _ 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH 0.00 �+ mm, 'd4't : S &•GOM�14ENTS, j ,a , f' ,o /. 4� i '' ' ' a: DIESEL �i11 „';� Diesel on Location 3,578 Well control drill i•I t ast, 1,434 y "" ''''Us;, > ved PA � ,,', ,, ' `i.`EL', 2,144 ��rr'r'''"° , 'PERSONN Otf LOCA ! - , y COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE C OUNT HOURS TOTAL SLUMBERGER Rig Crew 10 6.5 65 Schlumberger guns _ 2 6.5 13 PRA DSM 2 6.5 13 _ Schlumberger logging 1 6.5 6.5 PRA Safety 1 1 1 0 QVEATHORFORC Testier 4 6.5 26 _ 0 Weaver Loader 2 6.5 13 0 Peak Crane 4 6.5 26 0 AIMM Roust S /vac 3 6.5 19.5 - TOTAL COUNT 26 TOTAL MAN HOURS 183 MIIIIIIIIIIIIIIIIIIIIIr N miore7.y_d.71111r e]' II I1CH:7a1S]:( Date, 2/14/2012 Well Name CLU Storage 4 BRA #: - DSM Days: John Nicholson Current Depth: 10500 Location Kenai, AK Tar 10500 Cell Phone: (907) 299 -4306 Depth: ig Ftgf24hrs. 0 Fieki/PooL Cannery Loop / Sterling C contractor, Pollards N h M Grubb Days Since 27/ 6CT Present Release rig to CLU -3 1200hrs Rig Phone:' (907) 398 -3156 Celt Phone ; Spud operation: ' (907) 431 -7988 • RILLING DATA . , BIT # , , ,,, yN TYPE,,, JETS IN OUT FEET „ PIT ,,� ,TOTAL Hour ... r ,,; CASING Fin °_". 9G�,r L - R, - H , j& T Y r k . ; 20" 133# X -56 Welded 97' N/A July ' :' ' 13.375" 68# J - 55 BTC mod 2467' Schlumberger 1 -Oct i ,,5„ .,, e 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct er 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct 26# L -80 Vam Top 8424' N/A 23 -Oct PUMP #1 PE " "" y - h . .."" IUD PROPERTIES: , MUD ADINT 4N h . . + : a ; , ,,,,, ? uiative ROMP MANE PUMP MANF 0 WEIGHT GEL 450-ib kt ) r 138.00 00 ° .'' PUMP TYPE ' 0 FUNNEL vIS 5. ASH (r6 1b hag) '' °`" 10.00 ,« o-CY 1., ER SIZE 0 R600,P300 ,, -. Tie 57.00 " �',ir„ = 0KE,LNt3T i 0 R200/R100 a ® -;« 3309.00 -' ', ' ' - R61R3 ASPt8OL SUPREMO;,;',' 253.00 - GPS - PV CONQOR 404 3.00 GPM 1 - YP SODIUM M TASISULFJTE 24.00 i`3 1 r''. GELS FLO :'''', 153.00 ® :» - S STMS UP MIN; - API•FWID iSi4 PAC ..; %i/ - a: . . - 144.00 • - GT CIR MI$ - CAKE CF - DESCO It %i „- 33.00 ` . - . - s MYACIDE GA25 12.00 t. f% , - f:1. "A",' .. ' ' SCREEENKLEEN 138.00 Gt - . 4 . °D 21.00 .« . „" .. ip�� „- : -s f ff, `tL17� t�LOR ' 1086.00 pE„ f r. wr - , - % : - E -CAR 4p,:. 709.00 mar r - - 1 a5 �i ^g: �a 76.00 , , CA . ; _ ■ ' % _ 458.00 g- ;_ }".- RESINE)C i47%%4 . ;,; 120.00 w . - ° - . :L) SOLIDS, " ;(SBL:S "hauiledb)±.! 6061.47 )',V „, , - API SCREEN Daily Mud Cute � 21 F ;, ,, ;_ - ,i, Descri•tion e . - i 1 ii° t S ,... 9:00 16:30 7.50 PJSM : R/U pollard Wire line, Pull SSSV sleeve run and set RU/RD 1 155.00 SSSV. Purge control line W/ methanol followed by hydraulic Drilling 139.00 Fluid. Seat SSSV test valve Ok Service /Repair Rig i 17.50 Move to CLU5 and pull dummy sleeve/ set 5.250 sleeve Surve s 0.00 CLU -2 Tri.S 211.00 Run pollard fluid level sonic survey/ Fluid level 5038' Change BHA 38.00 Casing 81.75 Cementin• _ 21.00 Lo..in. 12.50 NU /ND Test 60.00 DST /Core i 0.00 Well Control I 0.00 Wocoil guns 0.00 P&A 0.00 Safety Meetings 6.00 Drilling Cement 4.50 Cit'clOther 6.50 61.25 „r„ r r ,,,,,,, , , G, 24.00 TOTAL 6.50 917.50 ; < <. BOTTOM HOLE ASSEMBLY QTY _, i 1, ,A!I ,,,,, , QiQ , . t....,... • : ,- ,,, ". •R O,D, LD. GAUGE NECK LENGTH TOT o 1 0.00 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH o.00 . i ... ,', REMARKS & COMMENTS DIESEL %% ,'- r Diesel on Location 3,578 Well control drill Diesel Used Last 24 1,434 Diesel Received TOTAL DIESEL.. 2,144 '_ ' %,!iii PERSONNEL. ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL SLUMBERGER Rig Crew 10 6.5 65 Schlumberger guns 2 6.5 13 PRA DSM 2 6.5 13 Schlumberger logging 1 6.5 6.5 PRA Safety 1 1 1 0 EATHORFORE Testing 4 6.5 26 0 Weaver Loader 2 6.5 13 _ 0 Peak Crane 4 6.5 26 0 AIMM Roust /vac 3 6.5 19.5 - TOTAL COUNT 26 TOTAL MAN HOURS 183 INGSA - DAILY DRILLING REPOR• Dal: 2/23/2012 V e4llame CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 10500 Locat Kenai, AK Target 10500 D-,th: cell Phone: (907) 299 -4306 Ftg!24hrs. 0 FieiI/Pool: Cannery Loop / Sterling C ' Pollards Nigh DSM ts; Conrad Perry I Days Since Present Spud 27/ 6 CT operations a (907) 398 -3156 Cell PlIme: (907) 727 -7404 DRILLING DATA BIT # SIZE MFG TYPE $ER # 5 OUT ' = 0 RS fTtHR iiiiii CASING SIZE WEIGHT GRADE THREAD DEPTH CEMI =NT PAFY ;: - ©A :,,. conduotor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct 1 intermediate 9.625" 40# L -80 BTC _ 8608' Schlumberger 12 -Oct Liner 7" _ 26# L -80 Vam Top 10498' Schlumberger 20 -Oct Tubing 7" 26# L -80 Vam Top 8424' N/A 23 -Oct PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES:', Dal', .E. O ` i g 4f''' ' MANF PUMP MANE m 0 WEIGHT GEL (50 lb Deg 138.00 PE ..' PtJME TYPE ;, 0 FUNNEL %IS S ASH (50 It bag) 10.00 L - LUNERSS1ZE,,,,,, 0 R600/R300' CAUSTIC 57.00 0 TOKE 1 0 R200/R100 LOTORO 3309.00 $$PM - R6/R3 ASPHASOL SUPR_;utE 253.00 ( - ,,, - PV C0NOOR 404 3.00 ` ° „ "M' YP SODIUMMETABISUI.FTE 24.00 r, , - ' °SI - I, ELS FLOWZAN 153.00 Po n - BTMS UP MIN: - •PI FLUID LOSS PAC 144.00 e - TOT CIR MIN - CAKE APH /HT CF -DESCO it 33.00 ' ,:, ,. ,,, SOLIDS MYACIDE GA25 12.00 0 „',1 % 0IL,/WATE ° SCREEENKLEEN 138.00 e t ;,° .' KLA-GARD 21.00 - -- Z c &` f .0, 7 .11 POTASSIUM CHLORIDE 1086.00 , r. - 0 ® ®, , SAFE -CARS 40 709.00 ," - <, 0,;4 . - CHLORIDES SODIUM BICARBONATE 76.00 fC OFF "';� CA BARITE 458.00 PULL. fi - - VOL. PIT- (BBL.) RESINEX 120.00 0 °! - PRESS DROP ; HOLE - (BBL) - SOLIDS (BBLS hauled by AIMM) ',- 6061.47 DCOO" - JET VEL - AP SCREEN Daily Mud Cum. - - /// y , ACTIVITY SUMMARY TIME SUMMARY p i ,,�.p De cri •tinn Detail Dal Curnula l e 7:00 Rig up Pollards WL. Test Lubricator. RIH with sampler to RU /RD I 155.00 12:30 5.50 8,811'. Wait on timer. POH with well sample. RD. Drilline 139.00 _ Sample was brine and pert debris Service /Repair Rig 17.50 Surveys 0.00 Trips 211.00 Change BHA 38.00 Casing 81.75 Cernenting 21.00 Logging ' ,1,, 12.50 NU /ND.Test x 60.00 DST/Core.. 0.00 Well Cpntt+01:, 0.00 Wocoil guns 0.00 P &A 0.00 Safety Meetings 6.00 Drilling Cement '', 4.50 Cirr <. 7 ' ' 6 .50 61.25 24.00 TOTA 6.50 917.50 BOTTOM HOLE ASSEMBLY ,,,GQTY .'', g. (« ,. CONN DOWN CC}NN UP VENDOR Q.D. I CaAUGE NECK LE . , L LENGTH I 7Q7A 0.00 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 g 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH o.00 Y.'S REMARKS & COMMENTS DIESEL Diesel on Location' 3,578 - Well control drill Diesel Used Last 24 1,434 Diesel Received DIESEL' 2,144 y;yicv/ " �" % / PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL SLUMBERGER Rig Crew 10 6.5 65 Schlumberger guns 2 6.5 13 PRA DSM 2 6.5 13 Schlumberger logging 1 6.5 6.5 PRA Safety 1 1 1 0 EATHORFORC Testing 4 _ 6.5 26 0 Weaver Loader 2 6.5 _ 13 0 Peak Crane 4 6.5 26 0 AIMM Roust /vac 3 6.5 19.5 - TOTAL COUNT 26 TOTAL MAN HOURS 183 •G DAILY DRILLING REPOR• .' �:,,,,.. 2/26/2012 Well Name Kenai, Storage SAo - 4 BHA DSM Days: John Nicholson Target 10500 Location Kenai, AK 10500 Cell Fhaner (907) 299 -4306 Depth: �a / %s Rig D 0 Field /Pool: Cannery Loop /Sterling C Contractor g Pollards Conrad Perry : Nights: 27/ 6 CT Present Rig Phone: (907) 398 -3156 Celt Phone' (907) 727 -7404 Operation: e - ;. 512 MFG TYPE SER # JET IN OUT FEET BIT GRADE TOTAL HOURS fThI ' , , - ZE WEIGHT GRADE TH OMPAN DATE " • 2 1 33# X -56 Welded READ 97' N/A July mil" 13.375" 68# J -55 BTC mo DEP 2467' H CEM Schlu 1 -Oct s 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct �/ :,, 7 26# 1 L -80 Vam Top 8424' N/A 23 Oct IP 7',i'2%,','1',0°''''" - �iwura PROPERTIES IMO at Tnr s: 1 = Daily [Cumulatiws � ,.. ;. ' w " p t < °,, �: €., 0 WEIGHT ',EL 558Its `.. 138.00 � 0 tl tNEL Yl5 S. ASH (60 lb brag) 10.00 t R t2E „ ; 0 , . � , CAUSTIC 57.00 '' ;C>t E LNi3T 0 $ ° '', LOTQRQ 3309.00 ?% r a �, ;, ,; ASPHA 0t UPREME 253.00 A ,,,a '' , Fv CQ#wlQOR 4v4 3.00 + z it YP SODIUM META 1Sfi t TE 24.00 GELS ' '` 153.00 p FLOWZAII= u c ` AP€ FLUI t)SS'' PAC 144.00 AKE T Gi -DESCO it 33.00 Le ; '.,OLIDS MYACtl7E GA25 12.00 il � � � s IL/WATER SCREEENKLI EN 138.00 i 4 ( AND EftACAD 21.00 ,.,' m ` S PH POTASSIUM 6 1086.00 it.�m.rP s SAFE CARS ao 709.00 CHLORIDES SQDIUM BICARBONATE 76.00 GA BARITE" 458.00 VOL PIT - (BBL R> SINEx 120.00 a ` - _ HOLE SCREE (BBL) SOLIDS (BBaily LS Mud hau Cunted by AIMM) 6061.47 m - ,, N D. , . ° API TIME SUMMARY 7 r ... :2 ours in RIH ipti Oetail Da ty Cumulative 7:00 PJ R/U pol wire line pull SSSV and replace RU /RD I 155.00 11:00 4.00 with 5.250 Sleeve POH RID and move out Drillin• ! 139.00 ervice/Repair Rig 17.50 Surveys 0.00 Trips 211.00 38.00 81.75 21.00 12.50 60.00 C hange BHA u sing C ementink L oq�c Ing N UIND Test _ DST /Core 0.00 Well Control 0.00 _ Wocoil guns 0.00 P &A 0.00 Safety Meetings 6.00 tllling Cem 4.50 ir c/Othe r 6.50 61.25 2:;2P/'.,4 s AL : rr ' . 6.50 91 ,, ... <... BOTTOM H AS "'� .Y �„ t l, w .. ` '''S''''''''' ,, , , . -'' � '5''4-*‘' `' '� ; ,, it, ' , .IT E 0.00 M CONN DOWN CONN U VE N DOR C}.l?. I,t?. GROG 4IGTH 1 0 2 0 3 4 0.00 5 0.00 6 0.00 7 0 8 0.00 9 0.00 10 0.00 11 0 12 0.00 BHA TOTAL LENGTH 0.00 5 � ', !"REMARKS 8 COMMENTS 1 DIESEL Diesel on Location 3,578 Well control drill r Diese Used Las 24 1,434 Diesel Receiv TOTAL DIESEL 2,144 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Pollard Wire Line 4 4 16 0 0 0 0 0 0 - TOTAL COUNT 4 TOTAL MAN HOURS 16 i G DRILLING REPOR• Date; 2/27/2012 Well Name C Storage SAo - 4 DAILY t3HA # DSM Days: John Nicholson Target ' 4 I t tir, 10500 location Kenai, AK 10500 Cell Phone:' (907) 299 -4306 Qd/ ... Rely Pool Cannery L oop / Sterling C BHI Coil DAM Conrad Perry ... �,., contractor, ! Idi Present s l y 27/ 7CT Rig 'Phvne:' (907) 398 - 3156 Cell Phone.. 727 -7404 gy m.:° ai/ sow , ... ; 4 h , „ x .t _ JETS ' IN OUT FEET �1T+ t t TCSTkLH 3 (907) URS fT HR ;11 / ; or wE .: THREAD l3 .•{ r � .. a � 20" 1 X -56 Welded 97' N/A Jul 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct 9.6 25" 40# L -80 BTC 8608' Schlumberger 12 -Oct 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct ktEirtiotrid a 7" 26# ' N/A 23 -Oct L -80 Vam Top 8424 �. , ; , ,, , QPERT {ES; MUD ADDITIVES: Dal sr 0 WEIGHT AUD PR C,Lflbhag) 138.00 0 FUNNEL tti S. + Seib 10.00 y 0 R6DtltR3tlp ` /' CA ;- 57.00 I 0 R200/11100 LOTORt 3309.00 i�!� R6/R3 ASPHASOL'Stl]£AI 253.00 t� .... PV 00NQOR 4U4 3.00 . YP $ODIU A TABtSU FFTE 24.00 i 1 if yf /f ' t t t3VV�i .. 153.00 F a," ��a BrM5�+h11k API FLUID LOSS p 144.00 t#C.�t TOT CAKE APH /HT E BC ft 33.00 +, AVD{: SOLIDS M A C DE GA25 ,' I- 12.00 - AVDC //H/y � - OIJWATER v�`lCROE i'+IKLE I r / 138.00 AVDC: SAND ttD' 21.00 � f' x'.,, N . y; RING & HYD PH t °;®TA 1 •l * „ 1 086.00 1 OB PfIMf SAFE- CAR$ 40 709.00 RPM CHLORIDES SODIUM BICARBONATE 76.00 ; BARITE 458.00 HHP VOL. PIT S ; 120.00 ►'; PRESS DROP HOLE (BBL) SOLIDS BLS d by AIMM} 6061.47 - . t, T VEt API SCREEN Daily (B Mud Gm. �� � %� � TI ME SUMMARY . Hours p escrip tian Detail Daily Cu mulative, 14:00 R/D N2 lines an m Move coil unit of liner Shovel R /RD 's 155.00 snow off liner, Move pu l p . U . and Drilling 139.00 and N/U on CLU 4. Run iner lines to CL to coil 4 unit. N/D Run BOP N2 stack ines and ler 17.50 19:00 5.00 R /U. Run control lines to BOP SSeurveys €ce /Re +air Ri• 0.00 Trips 211.00 38.00 Gaso Ghan.e + 81.75 Cemehtin. BHA 21.00 Lo••in+ 12.50 NU /ND Test 60.00 DST/Core 0.00 eII Control 0.00 ocoil guns 0.00 W P &A 0.00 Safe /Meetin•s _ 6.00 Glril[i� Cement 4.50 6 Circ/TOTAL Other . 50 61.25 f 4.00 .5 %ai ,! k ,fi BOTTOM HOLE ASSEMBLY QTY in t t i; CONN UP UENDOR C1.CD. I D GAUGE NECK LE TH TOTAL LENC,TH 1 0 2 0 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH 0.00 4" - ` p e ��� y � %i RE11AA� & Gt)M DIESEL pesslon L ocation 800 pi e s .. ed Last 24 + + 7 R ec eiv ed ' AL AtESEL 800 PERSQNNEL ON LOGATIQN 3, COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS T OTAL Pollard Wire Line 4 _ 4 16 0 0 0 0 0 0 - TOTAL COUNT 4 TOTAL MAN HOURS 16 •INGSA - DAILY DRILLING REPOR• Date: 2/28/2012 well Name CLU Storage 4 BHA #* - DSM Days_ John Nicholson Target Current Depth: 10500 Locafiott: Kenai, AK 10500 Cell Phone, (907) 299 -4306 Qepth: Ftg /24hr& 0 FieKtPoot: Cannery Loop / Sterling C R ' g BHI Coil DSM Conrad Perry Contractor:', Nights: Days Since 27/ 8 CT Present (907) Spud operation: Rig Phone: (907) 398 -3156 Cell Phone:' (907 727 -7404 ' DRILLING DATA BIT SIZE MFG TYPE SER# JETS IN OUT FEET eiT GRADE TOTAL ; HOURS FT/HR CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD DEPTH 1 CEMENT COMPANY 1 DATE 3 Conductor. 20 133# X -56 Welded 97' N/A July 5 feces 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct t ecrfate! 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Liner 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct Tubing 7" 26# L -80 Vam Top 8424' N/A 23 -Oct PUMP #1 PUMP #2 ti MUD PROPERTIES: MUD : : It : ,',y. ,. Cumulative,. PUMP MANE ' 138.00 F'UMPMANF 0 WE IGHT � %j y PUMP TYPE'' PUMPTYPE 0 FUNNEL ViS S.MH(80Y bbag)„ ..,'. },,..!" 10.00 LINER SIZE LINER SIZE 0 12600/R300 CAUSTIC:. 1� 57.00 STOKE LNGTH STOKE LNGTH 0 R200 /R100 , , 5 a // 3 309.00 SPM - SPM - R6/R3 ASPHA' *= m a i '' 253.00 GPS - GPS g s s « . 9 ,•• • P 3.00 GPM - GPM - VP 24.00 PSI - PSI - GELS ✓/ �r L . '- 153.00 BTMS UP MIN - BTMS OP MIN - API FLUID LOSS i j ',_ 144.00 TOT CIR MIN - TOT CIR MIN ! - CAKE APH/HT ! CF -D ,. %; 33.00 ®P: - AVDP: SOLIDS MY :. ) e /i 12.00 ' a0. AVDC: OIL/WATER l,;) TER 138.00 -- SCREEe t _ "_ ``•� ` � '��� _ D � D ' 21.00 slR1l6.r - " • ::. 'PH POTASSIUM CkLok1ibE 1086.00 t, ref; - se - Pt/Mf $ AFE GAR( 40 709.00 _. "tCK o t IP '-,-;',1"1,:,.;,', s % CHL SODIUM t1CARBONATE : 76.00 LACK OFF - TF ' ,,,: 6A ',,j BARITE: 458.00 MA): PULL - HHP - VOL,.,P1"{'r 6 RESIN , -` ... s� 120.00 DPOD - ... r s B ® ;" 6061.47 °COD - JET 11WL i'. ,, -,,, -- i . ` : ...,, - - ACTIVITY SUMMARY ... T ,:1 `!. Start Finish Hours Description _.. Detai , -<<',x g ,' , 5:00 7:00 2.00 Plow snow off location RI,,IIR 155.00 7:00 8:30 1.50 PJSM: R/U to test BOP Witness waved by AOGCC Jim Regg t i'' 139.00 8:30 11:30 3.00 Test BOPE and all related Components 250/4000 5min test 1 ~ 1 -1 n. = 17.50 11:30 13:00 1.50 Repair /Replace computer in operating cab.Spot N2 bulk $urv� $T t, O i ty 1 re 0.00 13:00 RIH W/ Coil to 10390' Start spotting 5.7bbI soap III while ; L ✓ A •' P 9 P P Trips ,�• „ ; 211.00 POH pumping 500scfm N2 to 9479' then increase N2 rate GFtert' ` `�` . :00 to 1000scfm F/ 9479' to 7000' Increase N2 rate to 250scfm C -., 81.75 RIH to 8000' Stop and begin displacing fluid out of well bore C s 21.00 RIH to 9300' Continue pumpingN2. Pull up to 8000'. Stop ' "` C a ', • 12.50 and monitor returns. Total fluid recovered 81 bbls. Shut down e , , 60.00 N2 POH Blow down surface lines. Remove injector head e A 0.00 22:00 9.00 From well head. Shut down coil unit secure location . t aT „; 0.00 WODDI m` ° ,,,. 0.00 ` P&A,- ' , Z% ;4;, D 0.00 4, # -t,; " 6.00 de, Es, i, /' 4.50 A%, ;'; 6.50 61.25 ',,';';%,"'-',-":" „ " 16.00 e gz 6.50 917.50 BOTTOM HOLE ASSEMBLY "l 1,' it'I,? _ 'QTY ITEM , , CONN DOWN CONN UP VENDOR O.D. L0 GAJGE , . '� . „ � . I 1 0.00 2 _ _ 0.00 3 0.00 4 0.00 5 0.00 6 _ 0.00 7 0.00 8 - 0.00 9 0.00 10 _ 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH o.00 REMARKS & COMMENTS i j7 ; ,,,,, DIESEL Hold PJSM Diesel on Loced ,, 800 BOP drill Coil Diesel Used Leek, Witness waved by AOGCC Jim Regg Diesel Receiv" 4. TOTAL OW 800 PERSONNEL ON LOCATION ! COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Pollard Wire Line 4 4 16 0 BJ Coil 5 16 80 _ _ 0 Weaver Bros Forklift 1 14 14 0 Aimm Vac 1 16 16 0 DSM DSM 1 24 24 _ 0 0 - TOTAL COUNT 12 TOTAL MAN HOURS 150 1,INGSA - DAILY DRILLING REPOR• Data:. 2/29/2012 Wen name CLU Storage 4 BHA* DSM : John Target Chant Depth: 10500 twoca ion: Kenai, AK Ile the 10500 CetlPhon (907) Nicholson 299 -4306 Rig HI Coil DS Conrad Perry 0 Field/Pool: Present Cannery Loop / Sterling C B Nights, ry Gorttractor: q Days Since! 27/ 9 CT Rig Phone: (907) 398 - 3156 001'1: Phone: 727 - 7404 Spud ©4rertlon: GRILLING DATA BIT# SIZE MFa TYPE SERA MI'S IN OUT = T Btr RA Rs tr rc t CASING ] SIZE WEIGHT GRADE ]THREADS' DEPTH 1 CEMENT C . „ANV 1 ©ATE 1 20" 133# X -56 Welde 97' N/A Jul 13.375" 68# J-55 BTC mod 2467 Schlumberger 1 -Oct 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct 7" 26# L -80 Vam Top 842 N/A 23 -Oct % ......: L 1:i�7:].i111 " ' s s Y. 1i ' 0 WEIGHT GEL (501e '''9"',',":..f;;;/-f; 138.00 '"-� L r 0 FUNNEL WIS S. ASH (atl 1 1 ) 1 C 10 % wl+S b �F ,Sf fA '� -',,,,,,=-- 0 R600/R300 CAUSTIO 57.00 �, ��,{ 0 R200/R100 LOTORQ 3309.00 R6/R3 A .. l ,4 „ „, ,, , i ,,,, SPHASE CONQQi : ,EB'R 253.00 ,,'' „ - PV -- thf 3.00 SODIUM ME St iTE 24.00 FLOWZAN ' 153.00 �,� IN - °', l FLUID LOSS PAC 144.00 s P A APHIHT ! CF - DESCO II 33.00 m SOLIDS MYR IDE OA25 " 12.00 SyREENKtEEN 138.00 / & fi -� r�1 ti dt: KLA- C�+�RD', 21.00 r'' r i k .? POTASSIU CHLORIDE ;r% i i 1086.00 F � ` - A - SAFE - AR(� 709.00 r . .:n ` w t' BICARBONATE 76. k � , 458.00 / - ;; 120.00 , , , , , , : , �. P t+ b Po ° - L 4 - 6061.47 J� ,ir ! API SC R '- - - , . §a 7Iv; >.< ,, 44:4, _ SUMMARY ... ' ;, ° tart F inis h ,, °H arm �„ 13escri.tian Det Dal m• 6:00 8:00 Plow snow RU /RD ':.',';'i''''.;:„:''''/,','': , 155.00 8:00 PJSM: start coil operations Run and secure N2 lines for W ing 139.00 10:00 2.00 injection test ervice /Repair Rig 17.50 10:00 Begin injection test at 2500scfm well head 440psi Surveys 0.00 AT 1943psiFormation taking N2 increase N2 pressure rate to [reps 211.00 well head psi increased to 2211 psi Formation started taking itange BHA :00 N2 and psi started dropped down to2102. Shut down and n 81.75 15:00 monitor well F/ 1 hr ementinr sig 21.00 15:00 16:30 1.50 R/D N2 lines and BOP stack Logging 12.50 16:30 16:30 Release coil to CLU -1 NU /ND Test 60.00 DST /Core 0.00 Well Control y ,J 0.00 Wocoil guns i ' "' 0.00 P &A 0.00 Safety Meetings 6.00 Drilling Cement 4.50 Circ/Other 6.50 61.25 TOTAL 6.50 917.50 BOTTOM HOLE ASSEMBLY ;. ...1. ",�,,, l E CONN DOWN CONN UP VE O.D. I.p. j . , GAUGE NECK LENGTH TOTAL LENGTH':. • 0.00 0.00 3 0.00 1 2 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 0.00 11 12 0.00 BHA TOTAL LENGTH 0.00 . A,O. /JY r COMMENTS DIESEL Hold PJSM Diesel on Location! 800 BOP drill Coil I�iesei Used Last 24 piese1 Received TOTAL piESEL 800 „i?r,,,.,,., PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Pollard Wire Line 4 4 16 0 BJ Coil 5 16 80 0 Weaver Bros Forklift 1 14 14 0 Aimm Vac 1 16 16 0 DSM DSM 1 24 24 0 0 weathford TOTAL COUNT 12 TOTAL MAN HOURS 150 dipINGSA - DAILY DRILLING REPOR ,rr 2/30/2012 Well Name CLU Storage 4 BHA#: DSM Days: John Nicholson / fit? 10500 Locat on Kenai, AK Target Depth, 10500 Cep Rhone: (907) 299-4306 Ri DSM , d iso . esit , „, a 1- 0 Field /Pool: Cannery Loop / Sterling C Pollards Conrad Perry contractor, N =at. 27/9 CT Present Spr3i�� Operation: Rig Phone: (907) 398 -3156 Cell PltOne: (907) 727 -7404 RILLING DATA ' f' %' : 51; E , , , .,', MF}„ .. k TYPE SER # JETS IN OUT FEET ?; 01T GRADE TOTAL HOURS f its .ti: ""- 2 kd =° l 77 , sue«,,. 7. GE . ENT COMPANY DATE ,_ 20" 133# X -56 Welded 97' N/A July 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct 7» `- 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct '' 7" 26# L -80 Vam Top 8424' N/A 23 -Oct b ,,, ,,, MUD P ROPERTIES: MUD AITi11ES.. :r„ Dal - " ,. 0 GEL (501b .; 138.00 - tttli717,4721 0 FUNNEL VlS S ASH (50 lb bag) 1- 10.00 t.� ; '% - 0 8800 8300 CAUSTIC 57.00 TTOKE $ i?H;' =';_ ' OKELN T 0 R200rR100 LOTORQ 3309.00 i 1 R 61R3 A$PHASOLSUPREME 253.00 vi - C()NDOR 404 3.00 - "M SODIUM METABISULFITE 24.00 - 1; Sl '",;,,:',>, , -ELS FLovVLAN 153.00 ;; tv1S UP. A PI FLUID LOSS PAC: 144.00 f ' � OT CIF# AKE APH!HT DE.DESCO II 33.00 AVDP. SOLIDS MYACIDE GA25 12.00 s' _ AVDC - , t t FR e,x, SCREEENKLEEN 138.00 AUDG SAND KLA-GARD 21.00 ,. t,',,,,,,, DRILL STAG & HYDRAULICS PH POTASSIUM CHL{JRIbIW ', ', - 1086.00 e i' :, PfrMf SAFE - CARE 40 709.00 ,'y' -' %i - CHLORIDES SODIUM BICARBONATE 76.00 SI:ACt Of`F` :: - ;OA - CA BARITE 458.00 MAX PULL - ' P ' N VOL, °'; • " (BBL .) RESINEX 120.00 t "fib °rJ ° - "ESS OP; - H L ,'{ L) SOLIDS (BBLS hauled by AIMM)' 6061.47 ' - JET - ii, N Mud Cum. - - ' ' $tart ACTIVITY SUMMARY TIME SUMMARY ` Finish Hours Descri • tion Detail Dal ..:......._ ' Cumulative 9:00 _ PJSM; R/U pollard wire line. RIH W /7" GLS pull 5.250 sleeve U /RD 155.00 POH RUN SSSV Purge control line set Valve confirm valve Drill 139.00 12:00 3.00 operating. POH and R/D Service /Repair Rig 17.50 Surveys 0.00 Note: 4500psi on control line,valve open Trips 211.00 Change BHA :00 Casing 81.75 Cementing 21.00 Logging 12.50 NU /ND Test 60.00 DST /Core 0.00 Well Control 0.00 Wocoil guns 0.00 P &A 0.00 Safety Meetings 6.00 Drilling C1nt 4.50 Circ/Other 6.50 61.25 TOTAL 6.50 917.50 ' : BOTTOM HOLE ASSEMBLY QTY ITEM CONN DOWN CONN UP VENDOR O.D. _ LD. GAUGE NECK', LENGTH Te, 1 0.00 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH o.00 i ; , REMARKS & COMMENTS DIESEL':.' Hold PJSM Diesel on Location 800 BOP drill Coil Diesel Used Last 24 Diesel Received TOTAL DIESEL 800 5 :7, %BFI i ATIOI� COMPANY NOTE CO N . COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Pollard Wire Line 4 _ 3 12 0 0 0 0 0 0 - TOTAL COUNT 4 TOTAL MAN HOURS 12 �NN� Tubing ��~�N�� �� Perforating ��~ �� • N ���U��� ������������ �-�N U�����N��� ���mmm�mmm��m ��m .� =° "���� � � ��=��= ~= � �= �, ,�� Client Well f Field Date Guns CINGSA CLUS 4 SLB 1 Kenai 10/2012 472^4upf4505PJ Count of Entries ==/ 26 Description Gun # Length Top Bottom GunSXN MMA, Swive|, Chooke, Disconnect 3 5.71 8.76474 8.77045 Safety joint 2'80^EUE 2 1625 8,770.45 8.78670 CBF Firin Head 1 4.50 8.78870 8.70120 ) 18 8.80 8,791.20 8,800.00 Gun (Partial) 18 12�8 8B�OOD 881238 115ftbotb�mnup 0 4 1�Q ' 47 . . � . . . /- - ` �un(Pod�|} 17 7.72 8.812.28 8.820.00 7.0 ft top down ~D - 4 - 189 29 |8|onk(Porda|v�punohe� 17 13.36 8.820.00 8.833.3G� puncher � ` 1 Blank (Gun Puncher) 16 21.08 8.833.36 8,854.44 l l puncher 450- 4- 220 2 Hi Blank (Gun Puncher) 15 21.08 8,854.44 8,875.52 puncher 450- 4- 222 2 B|unk <Porba|v/punoho� 14 4.48 8,875.52 8.880.00 puncher 1 |Gun(PoMio|) | 14 16.60 8,880.00 8.806.60 16.0 ft bottom up 65 Gun 13 21.08 8.896.60 8.917.68 450 - 4' 240 80 Gun 12 21.08 8.917.68 8.03876 460 - 4' 193 80 Gun 11 21.08 8.938J6 8.959.84 450 - 4- 192 80 Gun 10 31.08 8.959.84 8.980.92 450 - 4- 187 80 Gun 9 21.08 8.980.92 9.002.00 450 - 4- 186 80 Gun 8 21.08 9.002.00 9.023.08 450 - 4' 185 80 Gun (Partial) 7 i6.92 8.023.08 0.040.00 16.5 ft top down 67 Blank (Padia|v�punohe� 7| 4.16 9,040.00 8.O44�1G| _ puncher 1 Blank 6 21.08 0.044.16 9.065.24 I puncher 450 - 4 - 241 2 - Blank (Gun Puncher) 5 21.08 9.085.24 0.086.32 puncher 450 - 4 - 242 2 Blank (Gun Puncher) 4 21.08 9.086.32 0.107.40 puncher 450 - 4' 221 2 Blank (Gun Puncher) 3 21.08 9.107.40 9,128.48 i l puncher 450 - 4' 223 2 li lir a lk (Partial w/punohor) | 2 1.52 9.128.48 9.130.081 | puncher 1 (Partial) 2 19.56 9.130.00 � S.14S.5G 19.0ft bottom up 77 :Gun 1 20,44 9.149.56 9,170.00 450 4S0- 4- 219 80 'Bottom nose 0.86 9.170.00 9.170.86 40612 <-- BHA length Count of Guns (Charges) - > 18 ( Depths are referenced by shot location. See additional handout for physical lengths. Intervals Top MD Bottom MDI 'Net Blank Net Loaded 4 WP spf Blank (Gun Puncher) 6 Blank (Top) 8.791.20 8.800.00 ! 8.80 .�r� , Partially Loaded Gun 5 1 Loaded 8.800.00 8.820.00 20.00 Fully Loaded Gun 6 Blank 8 8.88000 ! 8008 ^ 1.”4 Bottom Gun 1 2 Loaded D 9.040.00 160.00 Blank 9.040.00 9.130.00 i 90.08 �~ 3 Loaded 8i3OOD 917OOO �� 4OOD 4 . � . � "'OP,. '^` a* ' Total Total 220.00 R � ���� w�� 1588U ��"��� �� T�hy/GunLen�bh 37880 Total Schlumberger BHA Lengtl 406.12 Ft. C II L US4 UPDATED FEB. 5 Prepared By: Reviewed By: Client Representative: WCP/TCP/SDP-054 Scot Shier Nikolai Soshnin John Nicholson & Mike Grubb Revision. AKA1 4 15-Dec-07 Schlumberger a Tubing Cclveyed Perforating Client Well Riq Field Date Guns CINGSA CLUS 4 SLB 1 Kenai 1/8/2012 4.72" 4spf 4505PJ Count of Entries = => 24 Description Gun # Length Top Bottom Gun S/N MHA, Swivel, Checks, Disconnect 4 5.71 9,225.04 9,230.75 Safety joint 2 - 3/8" EUE 3 16.25 9,230.75 9,247.00 CBF Firing Head 2 4.20 9,247.00 9,251.20 artial w /puncher) 18 18.80 9,251.20 9,270.00 I I puncher 1 Gun (Partial) 18 2.28 9,270.00 9,272.28 1.5 ft bottom up 7 Gun 17 21.08 9,272.28 9,293.36 450 - 4 - 199 80 Gun 16 21.08 9,293.36 9,314.44 450 - 4 - 213 80 Gun 15 21.08 9,314.44 9,335.52 450 - 4 - 214 80 Gun 14 21.08 9,335.52 9,356.60 450 - 4 - 215 80 Gun 13 21.08 9,356.60 9,377.68 450 - 4 - 211 80 Gun 12 21.08 9,377.68 9,398.76 450 - 4 - 224 80 Gun 11 21.08 9,398.76 9,419.84 450 - 4 - 225 80 Gun 10 21.08 9,419.84 9,440.92 450 - 4 - 226 80 I 9 19.08 9,440.92 9,460.00 18.5 ft top down 75 9 2.00 9,460.00 9,462.00 puncher 1 Blank (Gun Puncher) 8 21.08 9,462.00 9,483.08 1 puncher 450 - 4 - 216 2 Blank (Gun Puncher) 7 21.08 9,483.08 9,504.16 puncher 450 - 4 - 183 2 Blank (Gun Puncher) 6 21.08 9,504.16 9,525.24 ; puncher 450 - 4 - 198 2 Blank (Gun Puncher) 5 21.08 9,525.24 9,546.32 I puncher 450 - 4 - 197 2 Blank (Gun Puncher) 4 21.08 9,546.32 9,567.40 1 puncher 450 - 4 - 185 2 Blank (Gun Puncher) 3 21.08 9,567.40 9,588.48 ,_ I puncher 450 - 4 - 196 2 I w /puncher) 2 1.52 9,588.48 9,590.00 ; a puncher 1 u n (Partial) I 2 19.56 9,590.00 9,609.56 19.0 ft bottom up 0 - 4 - 229 77 :Gun 1 20.44 9,609.56 9,630.00 450 - 4 - 212 80 Bottom nose 0.86 9,630.00 9,630.86 . 405.82 < -- BHA length count of Guns (Charges) - -> (894) Depths are referenced by shot location. See additional handout for physical lengths. Intervals Top MD Bottom MDR Net Blank _ Net Loaded spf Blank (Gun Puncher) - 6 Blank (Top) 9,251.20 9,270.00 18 A.-,-,4, Partially Loaded Gun - 3 1 Loaded 9,270.00 9,460.00 1 190.00 4 Fully Loaded Gun - 8 Blank 9,460.00 9,590.00 130.00 ' ,; _ Bottom Gun - 1 2 Loaded 9,590.00 9,630.00 1 40.00 4 RUN 2 Total Loaded 230.00 Total Blank 148.80 Total Gun Length 378.80 Total Schlumberger BHA Length: 405.82 Ft. CWS UPD 5 ,2012 Prepared By Reviewed By: Client Representative: WCP/TCP /SDP -054 Scot Shier Nikolai Soshnin John Nicholson Revision: AKA1.4 - 15- Dec -07 1 of 1 Schlumberger • Tubing CcOveyed Perforating Client Well Rig Field Date Guns CINGSA CLUS 4 SLB 1 Kenai 1/8/2012 4.72" 4spf 4505PJ Count of Entries =_> 28 Description Gun # Length Top Bottom Gun S/N MHA, Swivel, Checks, Disconnect 3 5.71 9,841.16 9,846.87 Safety joint 2 - 3/8" EUE 2 16.25 9,846.87 9,863.12 TCP eFire firing head w/X Over 1 11.60 9,863.12 9,874.72 Blank (Partialy 5.28 9,874.72 9,880.00 1 1 Gun (Partial) _ 24 15.80 9,880.00 9,895.80 15.0 ft bottom up 61 Gun 23 21.08 9,895.80 9,916.88 450 - 4 - 681 80 Gun 22 21.08 9,916.88 9,937.96 450 - 4 - 171 80 Gun 21 21.08 9,937.96 9,959.04 450 - 4 - 845 80 Gun 20 21.08 9,959.04 9,980.12 450 - 4 - 846 80 Gun 19 21.08 9,980.12 10,001.20 450 - 4 - 862 80 Gun 18 21.08 10,001.20 10,022.28 450 - 4 - 858 80 Gun 17 21.08 10,022.28 10,043.36 450 - 4 - 857 80 Gun 16 21.08 10,043.36 10,064.44 450 - 4 - 856 80 Gun 15 21.08 10,064.44 10,085.52 450 - 4 - 855 80 Gun 14 21.08 10,085.52 10,106.60 450 - 4 - 854 80 Gun 13 21.08 10,106.60 10,127.68 450 - 4 - 844 80 Gun 12 21.08 10,127.68 10,148.76 450 - 4 - 848 80 Gun 11 21.08 10,148.76 10,169.84 450 - 4 - 847 80 Gun 10 21.08 10,169.84 10,190.92 450 - 4 - 839 80 Gun 9 21.08 10,190.92 10,212.00 450 - 4 - 843 80 Gun 8 21.08 10,212.00 10,233.08 450 - 4 - 879 80 Gun 7 21.08 10,233.08 10,254.16 450 - 4 - 872 80 Gun 6 21.08 10,254.16 10,275.24 450 - 4 - 841 80 Gun 5 21.08 10,275.24 10,296.32 450 - 4 - 876 80 Gun 4 21.08 10,296.32 10,317.40 450 - 4 - 850 80 Gun 3 21.08 10,317.40 10,338.48 450 - 4 - 877 80 'Gun 2 21.08 10,338.48 10,359.56 450 - 4 - 842 80 Gun 1 20.44 10,359.56 10,380.00 450 - 4 - 840 80 'Bottom nose 0.86 10,380.00 10,380.86 . 539.70 < -- BHA length .13ount of Guns (Charges) - -> (1901) Depths are referenced by shot location. See additional handout for physical lengths. Partially Loaded Gun - 1 Intervals Top MD Bottom MDI Net Blank Net Loaded spf Fully Loaded Gun - 22 Blank (Top) 9,874.72 9,880.00 5.28 Bottom Gun - 1 1 Loaded 9,880.00 10,380.00 II 500.00 4 Total Loaded 500.00 RUN I Total Blank 5.28 Total Gun Length 505.28 Total Schlumberger BHA Length: 539.70 Ft. CLUS4 Prepared By Reviewed By: Client Representative- WCP/TCP /SDP -054 Scot Shier Nikolai Soshnin John Nicholson Revision. AKA1.4 - 15- Dec -07 1 of 1 • • I CINGSA WeII:ICLUS # 4 I Field: 'Cannery Loop 102 -13 -2012 I 1 4) 41 Q. 5000 0 6000 7000 8000 9000 I I I 40 50 60 70 80 90 100 110 120 Temperature (Deg. F) -- Pressure —Temperature Report Date 2 -7 -2012 • • (6 \\ 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 2‘. �-- Cook Inlet Natural Gas Alaska, LLC P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Gas Storage Pool, CLU Storage 4 Sundry Number: 312 -046 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. S'• -- ely, re o a Com 's .ner DATED this 2 day of February, 2012. Encl. Cook Inlet NaluraGas Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 STO RA QJ Anc 99519 -0989 Main: n: 907- 907 - 334 -4- 7980 Fax: 907 - 334 -7671 a,,.* www.cingsa.com January 31, 2012 RECEIVED FEB 0 1 2012 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Alaska Oil Gas Cons. Commission Anchorage, AK 99501 fIchorage Re: CLU Storage 4 Application for Sundry Approvals Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) is requesting Sundry Approval to perforate and clean up CLU Storage 4. The well was suspended on October 24th, 2011 pending Coil Tubing perforating. v There are currently no open perforations in the well and 8.6 KCL brine was left in the 7 -inch tubing string. The tubing was tested to 3,000 psi. CINGSA proposes to rig up a 2 3/8 -inch coil tubing unit and well test equipment on location February 13, 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 2,206 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 @enstarnaturalgas.com. Sincerely, 7 /1 F --1°14/1 ' (-4- f M. Colleen Starring I�L / Vice President .� " a 6"-- Enclosure as stated �S' CGS ' 2AcCe , 2 Z /Z' • �,. OIF STATE OF ALASKA G 0 1,9" RECEIVED ALASKA OIL AND GAS CONSERVATION COMMISSICN APPLICATION FOR SUNDRY APPROVALS FEB 0 2012 20 MC 25280 1. Type of Request: Abandon u Rug for Redd, u Perforate New Pool u Repel' Well „J Change Approved Program Li Suspend u Rug Perforations u Perforate u • Pull Tubing LI,Alaska Oil & Gas 003181441ft 1sieelttj Operations Shutdow n u Re -enter Susp. Well u . Stimulate 11 After Casing 1.1 Other: Anchorage 11 2. Operator Name: 4. Current Wel Class: `� _ - . Cook Inlet Natural Gas Alaska, LLC Development u Exploratory u 211 -122 ' 3. Address: Stratigraphic u Service u 6. API Number: P.O. Box 190989, Anchorage, AK 99519 50 -133- 20598 -0000 - 7. if perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line w here ow nership or landow nership changes: Spacing Exception Required? Yes V No u CLU Storage 4 9. Property Designation (Lease Number): 10. Field/Pools): /fly - i ' 1 f- I s �,() / ADL 391627 ' Cannery Loo / (' � ,; - j Sterling C pool 1A 7.1- ' / 2 11, PRESENT YELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): Effective Depth MD (ft): Effective Depth ND (ft): Rugs (measured): Junk (measured): 10,500' 5,112' . 10,416' 5,108' none none Casing Length Size MD TVD Burst Collapse Structural Conductor 117.5 20" 117.5 117.5 n/a n/a Surface 2,467 13 3/8" 2,467 2,090 3,450 1,950 Intermediate 8,608 95/8" 8,608 4,921 5,750 3,090 Roduction Liner 2,073 7" 10,498 5,112 7,240 5,410 Perforation Depth MO (ft): Perforation Depth ND (ft): Tubing Size: Tubing Grade: Tubing MD (ft): see attached see attached 7" 26# L80 8,425 Packers and SSSV Type: BHI 9 5 /8 "HR ZXPN Liner Top Packer Packers and SSSV MD (ft) and ND (ft): Halllourton 7" WL FXE SSSV Ha - 8,425' / 4,867' SSSV - 150'/150' 12. Attachments: Description Summary of Proposal u 13. Well Class after proposed work: Detailed Operations Program u BOP Sketch u Exploratory u Development u Service L:I , 14. Estimated Date for 15. Well Status after proposed work Commencing Operations: February 9th, 2012 Oi u Gas u WDSPL u Suspended u 16. Verbal Approval: Date: WINJ u GINJ u WAG 11 Abandoned u Comrrission Representative: GSTOR u SPLUG u 17. I hereby certify that the foregoing is true and correct to the best of my know ledge. Contact T Arminski, 907 334 - 7743 Printed Name M. Colleen Starring, 907 277 -5551 Title Vice President Signature Rion • Date O M M ISSION USE ONLY Conditions of approval: Notify Commission so that a representative may w itness Sundry Nunber: e' t 2' `'_l Plug Integrity a BOP Test li Mechanical Integrity Test (] Location Clearance a Other: ?I WOO / S ; &) S f- Subsequent Form Requ'ved: / 0 A L/o ! APPROVED BY 0 4 Approved by: CO IvIIS.SI0t THE COMMISSION Date: a "3 6. / lo" ----- RBDMS FEB 03 11 Z �z - /2 � R 1 G 1 NAB. 1.)\--1 ,, • • CLU Storage 4 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 Blind /Shear Rams in upper Combi BOP body and 2 pipe rams in lower body. Pre -test BOP, all lines and valves to 250 psi /4000 psi. Install fusible cap on SSV. 4. Call for AOGCC Inspector. Pressure test BOP, all lines and valves to 250 psi /4000 psi. Ensure form 10 -424 is sent in to AOGCC within 24 hours of Pressure Test. ©lc- 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 Landing Collar at 10,416' MD/ 5,108'TVD. 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 (3 runs required) Run Sheets are attached. Run #1 - 10,380' to 9,880' 500' Guns Total BHA Length - 519' /Run #2 - 9,630' to 9,590' 40' Guns 9,460 to 9,270' 190' Guns Total BHA Length - 384' • • Run #3 A./ 9,170' to 9,130' 40' Guns 9,040' to 8,880' 160' Guns 8,820 to 8,800' 20' Guns Total BHA Length - 384' Perforations 4.5" PowerJet 4505 HMX 4 SPF MD Perforation TVD Perforation From To Footage From To Footage 10,380 9,880 500 5,106 5,074 31 )' 9,630 9,590 40 5,061 5,059 2 7/ 9,460 9,270 190 5,050 5,031 18 9,170 9,130 40 5,022 5,017 5 4' irS 9,040 8,880 160 5,005 4,984 22 8,820 8,800 20 4,974 4,971 4 Total Footage 950 Total Footage 82 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 10,416' MD/ 5,108'TVD 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 pert 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 Emerald Anchorage for disposal. 26. Release coil unit. • • >. �► CINGSA PROJECT �' ' �� COILED TUBING STACK UP Kenai, AK ' ��[[ T Infector C *tad CT leclung Frame t 14...... II 4.116" Cnnve tionai Str;Msar 1 1015 tt or 7.00' lubricator 1 It9lli ' 2375' CT String l i � l �►,.i a , I 706^ SK flow cross wlnutlet a 7Oer5K Well tree i; ! 9'1 1111111 l /i Well Clean Rig Up 150 MAWP P -Tank loo --> Gas • 55V -2" 2" LoTorc Choke , Measurement Tree - 7" 5k • _ ..> , � relief I� Rain for Rent 100' —Tank te BP valve 2" 1502 gas out Rain for Rent r' ® Tank drain i f • 4" -206 150' 2" -1502 wing \ 100' 4" -206 Thread 2" -1502 4" -206 ^ . - dataheader header V • Gas to client tower • II Perforating Run Sheets Schlumberger Tubing Conveyed Perforating ale" t Wel 1 9^ - F e c - 7.17.e f3..rIS CMS"! 1 C_LS 4 ELB 1 -.HI 1 1 2C1: Co IV: of Erater. - - .7_ Description Gun ii Loop Top Bottom Gun 3111 _ 1 : : - ;€2 9,874.72 314 24 E. -, ;,17.:. 72 9,85c.act . . II.E j 24 15.60 3,880.0C 5,e95.8o 15.0 it bottom up 61 - 23 21.06 3.Ett 5,516.6* 33 22 21.0E 5,51618 5,337.39 33 a _ - 21 21.0E 5,937.56 3,253.04 50 c. - 20 21.08 5,355.04 5,3110.12 ea 0._ -, 15 21.08 5,380.12 i0,001.20 80 ot. n 18 21.0E 1000120 10,0221 S 80 GI_ -, 17 21.0! lo,anie 10,043.3€ 80 Gk.-, 16 21.06 10,043.36 10,064.44 80 15 21.0E 10,064.44 10,085.52 33 OL n 1 21.06 10,085_52 10,106.60 80 OL . 1 13 21.0k 10,109.60 10127.0 80 12 21.CE 10,127.68 10,148.76 33 3' .. - 11 21.06 10,1407€ 10,165.84 80 el_ - 10 21.0E 10,16'9.84 10,130.52 60 el.-. 5 21.06 10,1D.52 10212_00 33 8 21.08 10,212.00 10,233.00 80 Gun 7 21.0E 10,233.06 10254.1€ 80 Gun . 21.0E 10,254.16 10,275.24 80 Gun 21.018 10.275.24 10,256.32 80 Gun - 21.0E 10,25632 10,317A0 30 Gun 3 21.CE 10,317.40 10,338.48 BO Gun 2 21.06 10,338.48 10,355.56 ea Gun t 20.44 10,355.56 I 10,380.01 ea 1 &Mon rime C. 10,380.0C - C.,38C.06 18 06 - bn.4 orrige 0 (...4.1/4011 a Itrillnpli -. 0 t1901) Deditu are refererced by End Iowan. Gee additcnat Handout forpri}sical wigs. P3131) =deo Goat -1 hdervala Top IAD Sothis %Mt Molt ' itittiMIEN - ' - 4,11' F10) Loaded Girl - 22 Mark (Top) g,E74.7 : 9,880.00 5.26 Mw 1 . e Gat - 1 1 Loaded 5,880_00 10,380.00 5)0.00 4 Tool Loaded 500.00 RUN 1 Total Blank Rte.! GOO Lenr 6.23 503.28 Tata1 8clikundergar ERA Lelgttr 5111.66 Ft. -; eft R1 IX' I kleSP7CPEOP4154 Soot Shier Mlophs SoshrW Carrad Perri I Rewtior. AK.A1 4 - 1E-Dec-437 I Y of ) • 0 SChiffillhargeP Tubing Conveyed Perforating C YICA. C .. 4 :_E 1 Kinal 11/21312 .= .7. 4 J - - _ _ 15-oecrIpll on Gun il Length Top Bottom Gun SAY _ : E': ':0 - lea: 4 4.23 9,247.DC 9,251.23 E 31; 11 • .i.. .:• P. I I Gt. i , ,Parlfau 1Bi 527610 527225 1.5 It bottom up 7 . - 17 21.0e 5272/5 92:13.3G rill.7111 ea 1_ 21.08 0,293.30 9,314.44 60 1 21.08 *3,314.44 5,335.52 80 oLn 1. 21.06 3,335M 5,350.8] 80 13 21.05 5,356.00 9$77.GE 80 o,- 12 21.06 5,377.03 3,3:6.7s ea .s..- 11 21.06 5,338.70 3,415.84 80 c•.- 1' 21.06 5,415.54 3,440.52 80 0L1 .:Parnail - 5,440 32 5,480.00 '155 It top cloven 75 .2 311 IF3ita .17. 9,46: :.: :;,452.013 .1: • .1' .„ ..._ .I.. i ,-. puncher 2 .:34,01 Puloner) 21.06 9,4831.16 9,504.16 puncher 2 E. alk ieun Privotial . 21.05 9,5134.15 9,525.24 "" puncher 2 BIN* {Gun Purohnr) 1 21.136 9,525.24 9,545.32 "." puncher 2 Blank ietan Pulver.* . 21.03 9,546.32 9,567.40 - puncher 2 Blank own 21.03 9,567.4C 9.588.48 - puncher 2 9,E834E 9,590.0D 5,55550 9,505.56 110 11 DOOM Up MI. 2 77 1 r - !^ ''. ..■,' i . +-. 80 ,,com .^‹...r.e. :.86 9,630.00 9,630.86 _ 35? 36 - &A Amen Cowito(Carint retairspe, -, itg 1 :73* a'e tete by wia Iorancri Gee alatonal haniout tor plysical ;emits. ltdervite Top RID Bottom led BUM Net Lostiocl EV Bark lair Purchert,.- E Ela-k 'Top) .S.,1.21'. 5.27E.00 1 8.53 Partial) Loaied Gm- 3 1 _oeciat1 3,270 00 5,400.00 :53.CC 4 F.ily Loabee WI - a 3,r 3,4.00.00 .5C.00 130.33 Evot.tom r-A.n - 1 2 _oaOed 3.5-53 GC _ 5,030.00 413.CC li Tom Loabecl 230.00 RUN 2 rs:a ll'ank 14E.80 7::a' G6 Lillig!r. 375.80 Tglal seer BI 4 Lengtti MAK Ft. Prepared Bf: Reviend B. CAert Representative. I thr-P7CP.SEIP-CSI 3�t Stir % t : ..-. : :t- - Conrad Pew/ Revnion: NC.4.1 -t- - 1 E-D1-:-.7" y 2 3 • • Schlomkrger Tubing Conveyed Perforating C11ert Wel Fed - D .n :s CI'4GA C._L 4 I CL5 1 K,1?''id 1. Ei D1. 4.72 4er 4 5Da .:...:hr-. c' Erie: :A Deecf1ptfon Gun 8 Length Top Bottom Gun 9 = =r -I-c: ' 1..Z 3,765 7E 8,791.23 F. 3 1P31t.'.. 1 E c 8EI MOW k I 1° r Ch. - I Tarliall I@ 12.28 ;,..Y ; s 11.51t txttom up jgb 47 Ot. - ;Partlail 17 7.72 8,812.28 8,120.00 7.0 It top down 29 Earoup aIt: 1 1'_. 3,E23.DC E,833.36 II Blank 404. - = : -r. 2 ' .�: =MA =Waal puncher 2 BIar*1GrrnPu - :'x-: 1' 2 __ . r. , , Y puncher 2 'Mt r_. 14 4.46 3,870.52 8,880.00 14 16.64 8,810.00 8,1696.90 19.01t bottom up 65 13 21.06 IlL . 4 '. �1 60 12 21.04 • . ~• ;, .- 80 _ _ 11 21.00 8,938.76 8,555.84 63 - 2. 10 21.00 8,965.84 8,980.52 80 9 21.00 EdULa - Mac i ll 67 at.1 8 21.0$ 1'r 11 • , r • . T 8'7 mi =MI" y 16 9. 9,02908 C� 5,040.(x1 16.5 it top down ■ � 67 16 4►7.00 5,D4.16 B lank 1i+ Pmm el * . D'c puncher 2 Blank faun P.111n n 5 211.06 r : _ I i . - puncher 2 Blank Mo n Pts+tc 4 21.06 9,0.32 5,107.40 puncher 2 S! k Kiln numanaI} 3 21.06 9.1'07 5,128.46 puncher 2 =3.* 1r o 1'. ;F, 1I 1I MALIAIIIIIMEJ 19.0 ft bottom up NM 77 owl 1 20.44 9,1431.56 5,170.111 ea E'rrun.' sr C.86 9,17n.CC :,170.86 . Y84. L 6w* * ...II a( ca..: r 0 13571 Cates we ty snot !maim Gee adclicnai handout for p1ysi:al evil's, Mark - C ____r8 Tep- Bolton DONS Net Lo&olad sir B4ark 1 Gir Pulver: - E @lark 1700 E,791.2C E,6X.00 691 Parikai) L:a - 5 1 Loaded 8,800.00 8,820.00 10[ = F.ily LOadec Gu, 6 Bank 8,820.00 8,690.00 EC X, Bdtoa►r dui - 1 2 Loaded 8,880.00 9,040.00 10.01E = 5 ar4. 5,040.00 5,130.00 90 3 3 Loaded 5,130 00 5,170.00 40.00 4 TOW !amen 220.04 RUN 3 7's:a: 81ar. k 156.80 i .io.' l sir !:t(i ^`r. 37E.60 Tot SChluntberger BHA Lengtt 384.1€ Ft. Fred B IReve+•x E.° .er1 ReD- ee-entre a IA'1':P P. 3P-C I. Scot Sher `. Mc 3 S?:trt r Conrad Perry Reytior. AKA1.4 -15-Dec-117 ' 0 , # 0 CINGSA CLU Storage 4 FMC Wellhead - 13 5/8" 5000# Multibowl FMC Tree - 7" 5000# complete with SSV Proposed Completion Schematic 1/31/2012 20" 133# X56 driven to 117.5' TVD /117.5' MD 7" Halliburton Wireline Retrievable SSSV @ 150' TVD /150' MD 13 3/8" 68# J55 BTC Surface Casing @ 2,090' TVD / 2467' MD 16" hole / Cemented to Surface I_ it-- DV Collar @ 3,404' a. 7" 26# L80 Vam Top `,'; Tubing 7" x 9 5/8" Baker ZXP Liner Top Packer 1 with 10' seal bore @ 4,867' TVD / 8,425' MD 9 5/8" 40# L80 BTC Intermediate Casing @ 4,921' TVD / 8,608' MD 12 1/4" hole / Cemented to Surface MD Perforation TVD Perforation From To Footage From To Footage 10,380 9,880 500 5,106 5,074 31 9,630 9,590 40 5,061 5,059 2 9,460 9,270 190 5,050 5,031 18 9,170 9,130 40 5,022 5,017 5 9,040 8,880 160 5,005 4,984 22 O • ■ 8,820 8,800 20 4,974 4,971 4 MI • ■ IN 0 we Total Footage 950 Total Footage 82 I 1 7" 26# L80 Vam Top Production Liner from 4,867' TVD / 8,425' MD TOP to 5,112' TVD /10,498' MD TD 8 1/2" hole / Cemented f • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1 a. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑ Suspended 0 lb. Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory ❑ GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service Ei Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Cook Inlet Natural Gas Alaska, LLC Aband.:10/24/2011 211 -122 3. Address: 6. Date Spudded: 13. API Number: P.O. Box 190989, Anchorage, AK 99519 9/28/2011 50- 13205980000 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 670' FNL 1762 FEL SEC. 9 T5N R11 W 10/17/2011 CLU Storage 4 Top of Productive Horizon: 8,578' MD / 4912' TVD 8. KB (ft above MSL): 50.5' 15. Field /Pool(s): 1333' FSL 2049' FEL SEC. 8 T5N R11 W GL (ft above MSL): 33' Cannery Loop/ Sterling C pool Total Depth: 10,500' MD / 5,112' TVD 9. Plug Back Depth(MD +TVD): 654' FSL 1442 FWL SEC. 8 T5N R11W 10,416' / 5,108' 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 281844.85 y- 2392882.52 Zone- 4 10,500' / 5,112' ADL 391627 TPI: x- N/A y- Zone- 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 274425.256 y- 2389058.746 Zone- 4 1507150' ADL 230925 18. Directional Survey: Yes gi No U 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 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 2,467 22 2,090 16" 433sx lead /324 sx tail 9 5/8" 40 L -80 20.5 8,608 20.5 4,921 12 1/4" Stage 1 -694 lead,191 sx tail Stage 2 460 sx DV @3,404' MD 7" 26 L -80 8,425 10,498 4,867 5,112 8 1/2" 296 sx 24. Open to production or injection? Yes No 0 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" 8425 8425 /4867 (.OMFLETtOk 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. I/ i DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 1 ii 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 - 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. E E I E inv 9 r4. 70 43 �� N OV 8 8 ZOII I � �a ��� & Gas Cons. Commission �1 A9� Ancnorago Form 10 -407 Revised 12/2009 CONTINUED ON REVERSE to . � S .• original only • • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? _ Yes L No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, Permafrost - Top and submit detailed test information per 20 AAC 25.071. Permafrost - Base B5 Coal 8543' 4902' Sterling C1 8578' 4913' Sterling C2 9544' 5056' 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: 771, l /yam Printed Name: 7 l /, / / /A Title: /..AL � Signature: ��t/J�G -�— Phone: .3 Date: ///7i 1-1// INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 12/2009 • • Cook Inlef Na1ura1Gas Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 STo jA Main: 907-334-7980 AK 99519 0989 �'� � << _ Main: 907 - 7- 334 -7980 ' Fax: 907 - 334 -7671 Q � rQ� www.cingsa.com November 23, 2011 RFCEIVED NOV 2 3 2011 Alaska Oil & Gas Conservation Commission Alaska lin & Gat (;offs. Cafmnissiffff 333 W. 7 Avenue, Suite 100 Antora e Anchorage, Alaska 99501 Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Records and Reports Information Acquired from Operations Well: CLU Storage 4 In accordance with 20 AAC 25.070(3), CINGSA hereby submits the records and reports related to drilling of its well, CLU Storage 4. 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, / G. anette Thompson Deputy General Counsel Enclosure as stated • CLU Storage 4 - Well Suspension Report Transmittal Hard Copies 1. CINGSA CLU Storage 4 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 Transmittal A1011001 for Washed and dried samples delivered to Howard Oakland - AOGCC 9. CANRIG Transmittal C111101 for paper and digital Mud Logs delivered to Christine Mahnken 10. CANRIG Transmittal C1111002 for paper and digital Mud Logs delivered to William Barron 11. BakerHughes Electronic log transmittal 105330001 /FedEx tracking # 463583759945 to AOGCC 12. BakerHughes Electronic log transmittal 105330001 /FedEx tracking # 463583759934 to AOGCC 13. CINGSA Well D (CLU Storage 4) AS BUILT Electronic Copies (thumb drive or CD) 1. CLU Storage 4 - Daily Drilling Report - checked.pdf 2. CLU Storage 4 - 10 -17 -2011 Completion Schematic.pdf 3. CLU Storage 4 Directional End of Well Report.pdf 4. CINGSA CLU Storage 4 Cementing Summary.pdf 5. CLU Storage 4 -IFE Recap CLU #4 - Final.pdf 6. CLU Storage 4 NAD27 Directional Data File.xlsx 7. CLU Storage 4 Certified Location As Built • • Conrad Perry From: trackingupdates @fedex.com Sent: Monday, November 21, 2011 10:40 AM To: cperry@att.net Subject: FedEx Shipment 463583759934 Delivered This tracking update has been requested by: Name: Jim Woods E -mail: jim.woods @bakerhughes.com Our records indicate that the following shipment has been delivered: Reference: 105330001 Ship (P /U) date: Nov 18, 2011 Delivery date: Nov 21, 2011 9:24 AM Sign for by: J.COLIBINE Delivery location: ANCHORAGE, AK Delivered to: Receptionist /Front Desk Service type: FedEx Priority Overnight Packaging type: FedEx Envelope Number of pieces: 1 Weight: 2.00 lb. Special handling /Services: Deliver Weekday Tracking number: 463583759934 Shipper Information Recipient Information HOUSTON ANCHORAGE TX AK US US Please do not respond to this message. This email was sent from an unattended mailbox. This report was generated at approximately 1:40 PM CST on 11/21/2011. To learn more about FedEx Express, please visit our website at fedex.com. All weights are estimated. To track the latest status of your shipment, click on the tracking number above, or visit us at fedex.com. This tracking update has been sent to you by FedEx on the behalf of the Requestor noted above. FedEx does not validate the authenticity of the requestor and does not validate, guarantee or warrant the authenticity of the request, the requestor's message, or the accuracy of this tracking update. For tracking results and fedex.com's terms of use, go to fedex.com. 1 • • Conrad Perry From: trackingupdates @fedex.com Sent: Monday, November 21, 2011 10:30 AM To: undisclosed- recipients: Subject: Online FedEx Tracking - 463583759945 This tracking update has been requested by: Name: (not provided by requestor) E -mail: iim.woodsObakerhughes.com Tracking number 463583759945 Reference 105330001 Ship date Nov 18, 2011 Destination ANCHORAGE, AK Estimated delivery Nov 21, 2011by 10:30 AM Service type Priority Envelope Tracking results as of Nov 21, 2011 1:29 PM CST Date /Time Location /Activity Nov 21, 2011 8:34 AM ANCHORAGE, AK /On FedEx vehicle for delivery Nov 21, 2011 7:50 AM ANCHORAGE, AK /At local FedEx facility Nov 19, 2011 7:54 AM ANCHORAGE, AK /Arrived at FedEx location Nov 19, 2011 5:49 AM MEMPHIS, TN /Departed FedEx location Nov 19, 2011 12:11 AM MEMPHIS, TN /Arrived at FedEx location Nov 18, 2011 8:50 PM HOUSTON, TX /Left FedEx origin facility Nov 18, 2011 5:17 PM HOUSTON, TX /Picked up Nov 18, 2011 11:23 AM /Shipment information sent to FedEx Disclaimer This tracking update has been sent to you by FedEx on the behalf of the Requestor noted above. FedEx does not validate the authenticity of the request and does not validate, guarantee or warrant the authenticity of the request, the requestor's message, or the accuracy of this tracking update. For tracking results and fedex.com's terms of use, go to fedex.com. 1 • cAmin lAu i.icr. Tres iww:x:v l.m. 301 EAst 92 AVENUE, MATE 2 • ANCHORAGE. ALASKA 9!615. (907(561 -2485. FAX (907(581 -2474 November 7, 2011 C1111002 Mr. William C. Barron - Director Department of Natural Resources — Division of Oil and Gas 550 West 7 Avenue Anchorage AK 99501 Re: Final DML Color Log Prints, Well Reports and Digital Data: CINGSA, CLU Storage 4, Kenai Borough, Alaska Dear Mr. Barron: Enclosed with this letter are the Final DML Color Formation logs for the recently drilled CINGSA CLU Storage 4 well. The following data and corresponding number of copies is included as per your instructions. CLU Storage 4 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' TVD (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 O.Ai -ia- ames R. Carson Alaska Division Manager Canrig Drilling Technology, Ltd. Received by: OCLITi,' WUNI. 'I ..21551 ig Title Date • • CANRIG I bO,. ,ar.'1'wr,tatxyr 1 su_ 301 EAST 92" AVENUE, SURE 2 • ANCHORAGE, Auslu 99611 • (907) 111 -2461 • FAX (!67)1614474 October 20, 2011 A1011001 Mr. Howard Okland AOGCC 333 West 7 Avenue Anchorage AK 99501 Re: Dry Sample Transmittal - CINGSA CLU Storage 4 Kenai Borough, Alaska Dear Howard: Enclosed with this letter are dry samples from the above referenced well. The following number of cuts are for the AOGCC per CINGSA instructions. CLU Storage 4 Set Type and Purpose Interval Frequency Distribution AOGCC 1 Washed and Dried 110' — 8450' 30' Interval 333 West 7 Ave Ste 100 Reference Samples 8450' — 10,500' 20' Interval Anchorage, Alaska 99501 ATTN: Howard Okland Most sincerely, 4�r James R. Carson Alaska Division Manager Canrig Drilling Technology, Ltd. Recei ed by: terwit Acrt 7.A_N 4 2_4 ti ignature Title Date RECEIVED OCT 20 2011 *aka 0 S & GU COL Camp** • • CA14141G 301 EAST 92" AVENUE, SUM 2 • ANCHORAGE, ALASKA 99515 • (907) 561.2495 • FA% (907) 561.7474 November 7, 2011 C111101 Ms. Christine Mahnken AOGCC 333 West 7 Avenue Anchorage AK 99501 Re: Final DML Color Log Prints, Well Reports and Digital Data: CINGSA, CLU Storage 4, Kenai Borough, Alaska Dear Christine: Enclosed with this letter are the Final DML Color Formation Togs for the recently drilled CINGSA CLU Storage 4 well. The following data and corresponding number of copies is included as per your instructions. CLU Storage 4 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' TVD (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, 6 , Ca.o-0-0""•--- mes R. Carson Alaska Division Manager Canrig Drilling Technology, Ltd. Received by: � cat\)35p4- Hp I I Signature �� , Title Date • • , \ \ \\ ,, SECTION 4 T5N R11W SECTION LINE *', \ `` S4�S3 SECTION 9 T5N R11W NOT TO SCALE ` ., ■ ` ■ 59 S10 TRACT E ■ ` ` KN 2005 -122 CITY OF KENAI \ , , • 1 ,$ G� , / J ,0\ ■ TRACT F / b z ,1 , `` y ', _ w w KN 2005 -122 (O LL i ` ' L , U STATE OF ALASKA / ` N 2 u1 CINGSA � ' o 0 / ; DRILL PAD , `1 1 ' 1.71- o ■ -6\ 2 • \ , \ \ ■ • 12, 1 t ■ \ s ` i CINGSA WELL "D" 1` , , ` ,` `,1 -' SURFACE LOCATION ' ' ', , \ NAD27ASPZONE4 ` GRID N:2392882.52 ' ' GRID E:281844.85 , `Ls_ ` LATITUDE: 60 °32'39.4968" `, LONGITUDE' - 151 °12'42.204e' , ° ELEV: 32 88 ■ 1 762', ` ', FEL ,, \ \ 1 Ir , ■ 33 E- L ., , . ■, \ \ > < , ', \ F , ` N W 1' ■ — "r ' , 1 ,I , I - , 1 I \ 1 I 1 1• 1 , 1 ■ I i ■ i , I , SURVEY CONTROL 1) BASIS OF GEODETIC CONTROL AND NAD83 POSITION (EPOCH 2003) IS STATE OF ALASKA DEPARTMENT OF 0111011—._. TRANSPORTATION & PUBLIC FACILITIES SURVEY •�� CONTROL AKSAS PROJECT NO. 58703 BENCHMARK 601 ALASKA STATE PLANE COORDINATES (ASP) ZONE 4 ARE: N OR TH N= 2393464.742 ... - 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 I FEET I REVISION: - Cook Inlet Natural Gas CINGSA WELL "D" DATE 8 /10/11 STORAC P.O. Box 190288 PROJECT AS -BUILT WELL SURFACE ANCHORAGE AK 99519 DRAWN BY. 803 QE LOCATION DIAGRAM NAD 27 SCALE: 1•' =100' PROJECT NO. 103049 z iA ENGINEERING / MAPPING /SURVEYING /TESTING BOOK NO. - Gon�uttn9 P.O. BOX 4 -4218 OTNA, AK99889 LOCATION SEC. 9 T5N R11W SHEET VOCE (907)283-1218 FAX (907) 283-3288 EMAIL: SAMCLANEQMOANE 5 CGCOM SEWARD MERIDIAN, ALASKA OF 6 IP CINGSA CLU Storage 4 Current Condition Schematic FMC Wellhead - 13 5/8" 5000# Multibowl 10/17/2011 FMC Tree - 7" 5000# complete with SSV q 1 i • V • a • ' ' , r . ai r 20" 133# X56 driven to 117.5' TVD /117.5' MD .1 _ 1 7" Halliburton Wireline Retrievable SSSV @ 150' TVD /150' MD « 1 r a: b• M• , . • • i t ' µ 1Y Yi kr Y d. it n � • 13 3/8" 68# J55 BTC Surface Casing @ 2,090' TVD / 2467' MD :.' *� 16" hole / Cemented to Surface `. 4' • .v . •1 ar a+ ri i lc, • • 7" 26# L80 Vam Top Tubing ; v j a r r .^+ 7" x 9 5/8" Baker ZXP Liner Top Packer with 10' seal bore @ 4,867' TVD / 8,425' MD ar • tf 9 5/8" 40# L80 BTC Intermediate Casing @ 4,921' TVD / 8,608' MD + 12 1/4" hole / Cemented to Surface CO O° • tS no perforations 1 II 7" 26# L80 Vam Top Production Liner from 4,867' TVD / 8,425' MD TOP to 5,112' TVD /10,498' MD TD 8 1/2" hole / Cemented Cook Intel Nalural,Gas t : STORA CINGSA (Cook Inlet Natural Gas Storage Alaska) BAKER 7 �, a . _ Location: Cook Inlet, Alaska (Kenai Peninsula) Slot: Slot #4 HUGHES Field: Cannery Loop Unit (NAD83) Well: CLU Storage 4 Facility: Gas Storage Pad Wellbore: CLU Storage 4 Plot reference wellpath is NaviTrak - OnTrak MW0<267- 10500' _ True vertical depths are referenced to Nabors 105E (RT) Grid System: NA083 / TM Alaska SP, Zone 4 (5004), US feet Measured depths are referenced to Nabors 105E (RT) North Reference: True north Nabors 105E (RT) to Mean Sea Level: 53.55 feet Scale: True distance __Mean Sea Level to Mud line (At Slot: Slot #4): 0 feet Depths are in feet _ Coordinates are in feet referenced to Slot I Created by: jonethoh on 19 -Oct -11 Easting (ft) Scale 1 Inch = 900 fl -8100 -7650 -7200 -8750 -8300 -5850 -5400 - 4950 -4500 -4050 - 3600 -3150 -2700 -2250 -1800 -1350 -900 -450 0 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 .; Slot #4 — o ,/ • 13 3/8" Casing Surface - - -450 .. -900 - -1350 ■ -1800 Z 0 - -2250 ? 7 rn -2700 0 -3150 9 518" Casing Intennedete o. d cr P2c Rvsd Preferred Tgt Heel 31- Aug-11 -. -3600 CCU Stots9e q a Plc Rvsd Preferred Tgt Toe 31 -Aug -11 -4050 - -4500 -4950 COOK Inlet N4tUTaI,GaS C INGSA (Cook Inlet Natural Gas Storage Alaska) • & STORAC h < Location: Cook Inlet, Alaska (Kenai Peninsula) Slot: Slot #4 FRIGNIES Field: Cannery Loop Unit (NAD83) Well: CLU Storage 4 Facility: Gas Storage Pad Wellbore: CLU Storage 4 . -1000 - 1 i Plot reference wellpath is NaviTrak - OnTrak MWD <267- 105005 I -500 — True vertical depths are referenced to Nabors 105E (RT) Grid System: NAD83 / TM Alaska SP, Zone 4 (5004), US feet I II Measured depths are referenced to Nabors 105E (RT) North Reference: True north Nabors 105E (RT) to Mean Sea Level: 53.55 feet Scale: True distance 0 — , , Mean Sea Level to Mud line (At Slot: Slot #4): 0 feet Depths are in feet 20in Conductor Coordinates are in feet referenced to Slot Created by: jonethoh on 19- Oct -11 ■ • ,000- 1500 — Q. 2000 ,— 13 3!8 "Casing Surface 0 To U_ 2500 U) 7 1- 3000 — 3500 — • 4000 — 4500 — „ 4.7 9 5/8 "Casing Intermediate ■ -��. 5000 CLU Storage 4 5500 p 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 Vertical Section (ft) Suk 1 mch -'°°° ° Azimuth 241.50° with reference 0.00 N, 0.00 E • • r Cook Inlet NaturaiGas STORAQ/ BAKE HUGHES � a End of Well Graphs 4 4 110 1 St 111 I. at * Amur 8 Production hole Bit #70114328 y} , • , 1 ....i ' "911111"— , ' 14 ^1 s a , j , .* T` , ti , i� w • * N 8 %2 Production hole Bit #70114328 ...,,,/, ,, 0 • t ri 4 .P f . "' . ! V "al ', ..t.' 0 ter 4. +°" N., �. • z 8 %2" Production hole Bit #70114328 \ I • ." . . low kr .` y 5:t" 16" Surface Hole Bit #5198929 ,, ,,, ., \ N. , ry. • ' wlv. \ . . , .., j x • IR 3I i ft 4 _ � _ a Y'' f * ,,.. •.. . G 'iii Fc i r e 4 y fir 4, \ Y It ,� • �� i I • P y fi t 1 , .t ,.. a illiM A il lib u v i a � '; _ 44. STORpA ai�`aic0, ADVA NTAGE Bit Report B AKER •■ G, HUGHES Operator CINGSA Fields Cannery Loop Facility Gas Storage Pad Location S9 T5N R11W Well CLU Storage 4 Wellbore CLU Storage 4 Rig Nabors 105E Job CLU Storage 4 (4063725) Bit Record Str Bit Size Mfr Name IADC S/N TFA Nozzles HSI In MD In TVD Dist Time ROP Max Max Press Flow Mud Wt Dull Condition WOB RPM # in in ^2 in/32 HP /in ^2 ft ft ft hours ft/ hr ibf RPM psi USgai /min ppg I 0 D L B G 0 R 1 1 16 HCC VM -1 115 5198929 0.9419 16,3x18 0.05 118.00 118.00 2364.00 15.50 152.52 15000 232 1650 550 9.3 1 1 WT A E I NO TD 2 2 12 1/4 HCC QD505XX M223 7131957 0.8836 8x12 1.01 2482.00 2097.41 6137.00 45.28 135.52 20000 145 2150 575 9.1 1 1 WT A X I NO TD 3 2RR1 12 1/4 HCC QD505XX M223 7131957 0.8836 8x12 1.46 8619.00 4923.92 0.00 0.00 120 1050 605 9.2 1 1 WT A X I NO TD 4 3 8 1/2 HCC Q0503ZX M123 70114328 0.8399 3x13,3x14 0.78 8619.00 4923.92 1881.00 21.00 89.57 8000 240 1500 400 9.1 1 7 BT G X 2 NO TD A Total of 4 bit runs were recorded. • •' Cook Inlet Nal?rul:Gas TARO TOR BAKER HUGHES Field Bit Record Z'N t �} 'A i' • i t Op Art ir I lk p Asir 4 4 Cook Inlet Natural Gas Actual Wellpath Report VI STORAQ , NaviTrak - OnTrak MWD <267- 10500'> BAKER Page 1 of 6 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #4 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 4 Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 4 Facility Gas Storage Pad REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska SP, Zone 4 (5004), US feet Software System WellArchitect® 3.0.0 North Reference True User Jonethoh Scale 0.999954 Report Generated 19- Oct -11 at 05:59:27 Convergence at slot 1.06° West Database /Source file WellArchitectDB/CLU_Storage_4.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[US ftj Northing[US ftj Latitude Longitude Slot Location 4615.67 8785.63 1421865.02 2392644.66 60 °32'37.442 "N 151°12'50.228"W Facility Reference Pt 1412992.83 2388198.60 60 °31'52.018 "N 151 °15'45.884 "W Field Reference Pt 1412992.83 2388198.60 _ 60°31'52.018"N 151 0 15'45.884 "W WELLPATH DATUM [Calculation method Minimum curvature Nabors 105E (RT) to Pad Elevation estimated 53.55ft III Horizontal Reference Pt Slot Nabors 105E (RT) to Mean Sea Level 53.55ft Vertical Reference Pt Nabors 105E (RT) Nabors 105E (RT) to Mud Line at Slot (Slot #4) 53.55ft MD Reference Pt Nabors 105E (RT) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth 241.50° l taro Actual VVellpath Report VII Cook Inlet a l.� Q STORA NaviTrak - OnTrak MWD <267- 10500'> BAKER Q'' Page 2 of 6 HUGHES REFERENCE WE11.l'ATI1 ID1 N' IFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #4 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 4 Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 4 Facility Gas Storage Pad WELLPATH DATA (111 stations) MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North Latitude Longitude DLS Build Rate Turn Rat I ft l (] [n 1a] 1st ° l [°ll00ft] 0.00 0.000 307.950 0.00 0.00 0.00 [ a1 151°12'50.228"W 1 ,1 0.00 1421865.02 2392644.66 60 ° 32'37.442'N 0.00 0.00 0.00 267.00 0.560 307.950 267.00 0.52 0.80 -1.03 1421864.01 2392645.48 60 °32'37.449 "N 151 °12'50.248 "W 0.21 0.21 0.00 292.00 0.6301 306.320 291.99 0.63 0.96 -1.24 1421863.80 2392645.64 60 °32'37.451 "N ( 151 °12'50.253 "W 0.29 0.28 -6.52 381.00 2.310 242.010 380.97 2.63 0.41 -3.21 1421861.81 2392645.13 60 °32'37.446 "N 151 °12'50.292 "W 2.38 1.89 -72.26 - 471.00 4.920 237.950 470.78 8.30 -2.49 -8.09 1421856.89 2392642.32 . 60 °32'37.417 "N 151 ° 12"50.390 "W 2.91 2.90 -4.51 561.00 8.220 240.640 560.18 18.59 -7.70 -16.97 1421847.91 2392637.28 60 °32'37.366 "N 151 ° 12'50.567 "W 3.68 3.67 2.99 651.00 10.750 236.760 648.94 33.39 -15.45 -29.60 1421835.14 2392629.76 60 °32'37.289 "N 151 °12'50.820 "W 2.90 2.81 -4.31 741.00 13.660 236.240 736.90 52.34 - 25.96 -45.46 1421819.09 2392619.54 60 °32'37.186 "N 151 °12'51.137 "W 3.24 _ 3.23 -0.58 830.00 17.150 237.440 822.68 75.90 -38.87 -65.26 1421799.06 2392607.00 60 °32'37.059 "N 151 °12'51.533 "W 3.94 3.92 1.35 - 926.00 20.610 240.250 913.51 106.92 -54.88 Y -91.87 1421772.16 2392591.49 _ 60 °32'36.901 "N 151 °12'52.065 "W l 3.73 � �3 60 2.93 1022.00 23.040 240.830 1002.62 142.60 -72.42 1 - 122.95 1421740.77 2392574.53 J 60 °32'36.728 "N 151 °12'52.686 "W 2.54 2.53 0.60 1118.00 24.420 239.730 1090.50 181.22 -91.58 - 156.49 1421706.88 2392555.99 60 °32'36.540 "N 151 °12'53.357 "W 1.51 1.44 -1.15 1213.00 25.380 239.090 1176.67 221.19 - 111.94 - 190.92 1421672.08 2392536.27 60 °32'36.339 "N 151 °12'54.045 "W 1.05 1.01 -0.67! 1309.00 26.740 238.430 1262.91 263.32 - 133.81 - 226.97 1421635.63 2392515.06 60 °32'36.124 "N L 151 °12'54.766 "W 1.45 1.42 -0.69 1405,00 29.220 237.180 1347.68 308.26 - 157.82 1 - 265.07', 1421597.10 2392491.76 60°32'35.887 0 N - 151 °12'55.527 "W 2.65 2,58 - 1.30 1502.00 32.700 237.320 1430.85 358.01 - 184.81 - 307.03 1421554.64 2392465.55 60 °32'35.621 "N 151 °1.2'56.366 "W 3.59 3.59 0.14 1597.00 36.110 237.400 1509.22 411.54 _ 213.76 - 352.23 1421508.92 2392437.45 60 °32'35.336 "N 151° 12'57.270 "W 3.59 3.59 0� 1693.00 38.600238.010 1585.52 469.66 - 244.87 - 401.47 1421459.1.2 2392407.25 60 °32'35.030 "N 151 °12'58.254 "W 2.62 2.59 0. 1789.00 40.940 237.340 1659.30 530.93 - 277.71 - 453.35 1421406.64 2392375.37 60 °32'34.707 "N 151 °12'59.292 "W 2.48 2.44 -0.70 1885.00 43.090 237.190 1730.63 595.00 - 312.46 - 507.40 1421351.97 2392341.63 3234.364"N 151 °13'00.372 "W. 2.24 -0.16 1981.00 45.370 238.350 1799.41 661.82 - 348.16 - 564.05 1421294.67 2392306.99 60 °32'34.013 "N 151 °13'01.505 "W 2.52 2.37 1.21 2077.00 48.510 239.280 I864.95 731.88 - 384.46 - 624.05 1421234.01 2392271.80 60 °32'33.655 "N 151 °13'02.704 "W 3.35 3.27 0.97 2172.00 51.900 238.920 1925.74 804.79 - 421.94 - 686.67 1421170.71 2392235.48 60 °32'33.286 "N 151 °13'03.956 "W 3.58 3.57 -0.38 2268.00 54.690 237.980 1983.12 881.64 - 462.22 - 752.25 1421104.41 2392196.42 60 °32'32.889 "N 151 °13'05.267 "W 3.01 2.91 -0.98 2364.00. 57.870 238.780 2036.40 961.36 - 504.07 ` - 820.24 1421035.66 , ' 2392155.83; . 60 °3212.477" ° 151 .627"W 3.30 r . 3.31 .` ; 0.83 2428.00 59.090 240.050 2069.86 1015.88 - 531.82 - 867.20 1420988.19 2392128.95 60 °32'32.204 "N 151 °13'07.566 "W 2.55 1.91 1.98 2578.00 60.410 241.090 2145.43 1145.43 - 595.48 - 980.06 1420874.19 2392067.39 60 °32'31.577 "N 151 °13'09.822 "W 1.06 0.88 0.69 2673.00 61.500 241.230 2191.55 1228.48 - 635.54 - 1052.81 1420800.72 2392028.68 60 °32'31.182 "N 151 °1311.276 "W 1.15 1.15 0.15 2768.00 61.500 241.160 2236.88 1311.97 - 675.77 - 1125.97 1420726.83 2391989.81 60 °32'30.786 "N 151 °13'12.739 "W 0.06 0.00 -0.07 - 2863.00 ` `61.510 : 240.750 1 , 2282,20 1395.45 - 716,30 - 1198.96` 1420653.11 2391950.63; -. 60°32'30.307"N; , , ; 0.30 .,401_ Cook Inlet Natural, Gas A Iffaiii 11 ctual Wellpath Report STORA f~ �" NaviTrak - OnTrak MWD <267- 10500'> BAKER `7(fa : ' Page 3 of 6 NUGhIES REFERENCE WELLPATN IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #4 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 4 Field Cannery Loop Unit (NAD83) Weilbore CLU Storage 4 Facility Gas Storage Pad WELLPATH DATA (111 stations) MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North Latitude Longitude DLS Build Rate Turn Rat [nl 11 tel [al [al [a] [ul [US ft] [US ft] - [ ° /ioortl [ °'100 t) [ °/100fti• 2960.00 61.470 240.130 2328.50 1480.68 - 758.35 - 1273.10 1420578.21 2391909.96 60 ° 32 29.973 N 151 o 13 15.680 W 0.56 -0.04 -0.64 3057.00 61.490 239.910 2374.82 1565.88 - 800.94 - 1346.93 1420503.61 2391868.74 60 °3229.553 "N 151 °1317.156 "W 0.20 0.02 -0.23 3153.00 61.480 239.310 2420.65 1650.19 - 843.61 - 1419.69 1420430.08 2391827.42 60 °3229.133 "N 151 °13'1.8.610 "W 0.55 -0.01 -0.62 3248.00 61.490 239.240 2466.00 1733.60 - 886.26 - 1491.45 1420357.55 2391786.10 60 °32'28.713 "N 151 °13'20.045 "W 0.07 0.01 -0.07 3343,00 61.490 238.520 2511.34 1816.99 i - 929.41 - 1562.91 I - 1420285.30 2391744.29 60 °32'28.288 "N - 151 °13'21.474 "W 0.67 0.00 - 0.76 3440.00 61.500 238.430 2557.64 1902.11 - 973.98 - 1635.57 1420211.84 2391701.07 60 °3227.849 "N 151 °13'22.926 "W 0.08 0.01 -0.09 3535.00 61.690 238.380 2602.83 1985.55 - 1017.76 - 1706.75 1420139.87 2391658.61 60 °32'27.417 "N 151 °1324.349 "W 0.21 0.20 -0.05 _ 3630.00 61.670 237.970 2647.90 2069.04 - 1061.86 - 1777.81 1420068.01 2391615.83 60 °32'26.983 "N 151 °1325.769 "W 0.38 -0.02 -0.43 3726.00 61.660 237.760 2693.46 2153.37 - 1106.80 - 1849.36 1419995.65 2391572.21 60 °3226.540 "N 151 °1327.200 "W 0.19 -0.01 -0.22 3821.00 - 61.880 237.840 2738.40 2236.89 - 1151.41 1920.191 1419924.01 2391528.93 60 °32 ( 151 °1328.615 "W 0.241- 0.23 0.08 3917.00 61.840 237.690 2783.67 2321.37 - 1196.56 1991.79 1419851.59 2391485.1 60 °3225.656 "N 151 °13'30.047 "W 0.14 -0.04 -0.16 4013.00 61.820 237.980 2828.99 2405.82 - 1241.61 - 2063.43 1419779.13 2391441.38 _ 60 °3225.212 "N 151 °13'31.479 "W 0.27 -0.02 0.30 4109.00 _ 61.980 237.730 2874.211 2490.34 -1286.67 - 2135.13 1419706.62 2391397.66 60 °32'24.769 "N 151 °13'32.912 "W 0.28 0.17 -0.26 4204.00 62.060 238.320 2918.78 ( 2574.08 - 1331.10 - 2206.30 1419634.65 2391354.56 60 °32'24.331 "N 151 °13'34.335 "W I 0.55 0.08 0.62 4300:00 I 62.010 238.770 2963.80 2658.75 - 1375.34 2278.63 1419561.52 2391311.65 60 °32'23.895 "N 151 °.13'35.780 "W 0.42 , -005 0:47 4396.00 62.010 238.590 3008.85 2743.42 - 1419.41 - 2351.05 1419488.30 2391268.93 60 °32'23.461 "N 151 °13'37.228 "W 0.17 0.00 -0.19 4492.00 62.030 238.890 3053.89 2828.10 - 1463.40 - 2423.52 1419415.03 2391226.29 60 °32'23.028 "N 151 °13'38.676 "W 0.28 0.02 4588.00 62.040 239.340 3098.91 2912.82 - 1506.92 - 2496.28 1419341.48 2391184.11 60 °32'22.599 "N 151 °13'40.131 "W 0.41 0.01 0. 4687.00 61.820 239.300r 3145.50 3000.11 - 1551.50 - 2571.41 1419265.55 2391140.94 60 °32'22.160 "N 151 °13'41.633 "W 0.23 -0.22 -0.04 4781.00 * 61.880 240.000 3189.84 3082:95 1593:371 2642.931 141919327 2391100.39 60 °32 "N ' 151 °13'43.062 "W 0.66 0.06` " "" 0.74 4877.00 61.890 239.730 3235.08 3167.59 -1635.88 - 2716.161 1419119.27 2391059.24 60 °32'21.328 "N 151 °13'44.526 "W 0.25 0.01 -0.28 4971.00 61.870 240.030 3279.39 3250.46 - 1677.49 - 2787.87 1419046.81 2391018.97 60 °32'20.918 "N 151 °13'45.959 "W 0.28 -0.02 0.32 5067.00 61.870 240.110 3324.65 3335.09 - 1719.73 - 2861.24 1418972.68 2390978.09 60 °32'20.502 "N 151 °13'47.426 "W 0.07 0,00 0.08 5163.00 62.060 239.440 3369.77 3419.79 - 1762.38 - 2934.46 1418898.69 _ 2390936.80 60 °3220.082 "N 151 °13'48.889 "W 0.65 0.20 -0.70 5259.00 - 62:050 ,' 239.7601 3414,76 3504.55 ". - 1805.30 - 3007.60 1418824.77 239089524 60 °52'19.659"N - 151 °13'50.351 "W 0,29;. _'.. ",,: 401 ."; 033 5355.00 62.000 239.460 3459.79 3589.28 - 1848.19 - 3080.74 1418750.86 2390853.71 60 °32'19.237 "N 151 °13'51.813 "W 0.28 -0.05 -0.31 5450.00 62.040 238.940 3504.36 3673.11 -1891.14 - 3152.80 1418678.02 - 2390812.09 60 °32'18.813 "N 151 °13'53.253 "W 0.49 0.04 -0.55 5546.00 62.010 239.010 3549.39 3757.81 - 1934.84 - 3225.45 1418604.58 2390769.74 60 °32'18.383 "N 151 °13'54.705 "W - 0.07 -0.03 0.07 5642.00 62.040 239.070 3594.43 3842.52 - 1978.46 - 3298.16 1418531.08 2390727.48 60 °32'17.953 "N 151 °13'56.159 "W 0.06 0.03 0.06 5738.00 62.090 " 238,7808." 36339.40, " 392724 X2022,24 - 3370.80 1418457.65 .. ` 2390685.05 60°32' 151 °13 17.620 "W 0,.27 : ' _" 005. µ0.30 Cook Inlet NaturalWGas Actual Wellpath Report VII , .. W STORA , ` �, NaviTrak - OnTrak MD <267- 10500'> BAKER n Page 4 of 6 HUGHES REFERENCE WELI,PATH IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #4 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 4 Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 4 Facility Gas Storage Pad ELLPATH DATA (111 stations) MD Inclination Azimuth TVD Vert Sect North Grid East Grid North Latitude Longitude DLS Build Rate Turn Rat Ift] 1 1 MI [ft] iftl [US ft] [US ft] 1 ° /100ft [ ° /100ft [ ° /100ftl 5834.00 62.080 239.040 3684.34 4011.99 - 2066.04 - 3443.44 1418384.21 2390642.59 60 °32'17.090 "N 151 °13'59.062 "W 0.24 -0.01 0.27 5929.00 61.860 238.940 3728.99 4095.76 - 2109.24 - 3515.32 1418311.56 2390600.73 60 °32'16.665 "N 151 °14'00.499 "W 0.25 -0.23 -0.11 6025.00 61.880 238.760 3774.25 4180.33 - 2153.04 - 3587.77 1418238.31 2390558.28 60 °32'16.233 "N 151 °14'01.947 "W 0.17 0.02 -0.19 6121.00 61.820 238.440 3819.54 4264.87 - 2197.14 - 3660.02 1418165.27 2390515.52 60 °32'15.799 "N 151 °14'03.391 "W 0.30 -0.06 -0.33 6219.00 61.860 238.360 3865,79 4351.14 - 2242.41 -3733.61 1418090.86 2390471.62 60 °32'15.353 "N 151 °14'04.862 "W 0.08 0.04 -0.08 1 6314.00 61.960 238.370 3910.52 4434.83 - 2286.37 - 3804.96 1418018.71 2390428.98 60 °32'14.919 "N 151 °14'06.288 "W 0.11 0.11 0.01 6409.00 62.030 238.9501 3955.13 4518.60 1 - 2329.99 - 3876.60 1417946.28 2390386.69 60 °32'14.490 "N 151 °14'07.719 "W 0.54 0.07 0.61 6505.00 61.990 238.860 4000.18 4603.28 r - 2373.77 - 3949.19 1417872.90 2390344.26 60 °32'14.058 "N 151 °14'09.170 "W 0.09 -0.04 -0.09 6600.00 61.940 238.850 4044.83 4687.05 I - 2417.14 - 4020.96 1417800.35 2390302.22 60 °32'13.631 "N 151 °14'10.604 "W 0.05 -0.05 -0.01 6696.00 62.000 238.970 4089.95 4771.70 r -2460.90 -4093.53 ( 1417726.99 2390259.81 60°32'13.200"N 151 ° 14'12.055 "W 0.13 0.06 _ 0.12 6791.00 62.000 238.890 4134.55 4855.50 r - 2504.19 -4165.37 1417654.36 �2390217.86 1 60 °32'12.773 "N 151 0 14'13.491 "W 1 0.07 0.00 _. -0.08 6887.00 61.980 239.040 4179.63 4940.17 - 2547.89 - 4237.99 1417580.95 2390175.51 60 °32'12.343 "N 151 °1414.942 "W r 0.14 -0.02 0.16 6981.00 62.000 239.290 4223.77 5023.09 - 2590.42 - 4309.25 1417508.92 2390134.30 60 °32'11.923 "N I 151 °14'16.366 "W r 0.24 0.02 0.27 7077.00 62.010 239.870 4268.84 5107.81 - 2633.34 - 4382.35 1417435.05 2390092.73 60 °32'11.500 "N 151 °14'17.827 "W 0.53 0.01 0.60 7173.00 62060 239.530 .4313.85 5192.56 - 2676.12 445536 1417361.07 239005131 60 °32'11.079 "N 151 0 14'19.290 0 W 1 N 0.32 0.05 -0.35 7269.00 62.010 239.330 4358.87 5277.29 - 2719.25 - 4528.56 1417287.28 2390009.55 60 °32'10.654 "N 151 °1420.749 "W 0.19 [ -0.05 -0.2 7365.00 62.030 239.780 4403.91 5362.02 - 2762.20 -4601.65 1417213.42 2389967.95 60 °32'10.231 "N 151 °14'22.209 "W 0.41 0.02 I 7461.00 62.000 239.600 4448.96 5446.75 - 2804.99 - 4674.84 1417139.46 2389926.52 60 °32'09.809 "N 151 °14'23.672 "W 0.17 -0.03 -0. 7556.00 62.000 239.730 4493.56 5530.59 - 2847.35 - 4747.231 1417066.29 2389885.50 60 °32'09.392 "N 151 °1425.119 "W 0.12 0.00 0.14 7654.00 61.910' 239.480 4539.63 617.0 - 2891.11 4821.84 1416990.90 i 2389843.13 60°32'08.960 "N .. 151°14'26 ,610 "W ° `, ` ff,2 ° -0.09 426 7748.00 61.860 239.160 4583.93 5699.88 - 2933.42 - 4893.14 1416918.83 2389802.15 60 °32'08.543 "N 151 °14'28.035 "W 0.30 -0.05 -0.34 7843.00 61.830 238.7701 4628.76 5783.56 - 2976.60 - 4964.91 1416846.28 2389760.30 60 °32'08.118 "N 151 °1429.469 "W 0.36 -0.03 -0.41 7939.00 61.840 238.970 4674.07 5868.10 - 3020.35 - 5037.36 1416773.04 2389717.89 60 °32'07.687 "N 151 °14'30.917 "W 0.18 0.01 0.21 8035.00 63.100 240.070 4718.44 5953.18 - 3063.53 - 5110.72 1416698.90 2389676.08 60 °32'07.261 "N 151 °14'32.383 9 W 1.66 1.31 1.15 8131:00; ; >: 64,890 241..620 4760:54: ..6039.45 3105:55 4186,07 , 1416622,79 2389635.46 60 °32'06.847"N ' 151 °14'33.888"W 236 146 1:61 8226.00 67.020 242.860 4799.24 6126.19 - 3145.95 - 5262.84 1416545.29 2389596.48 60 °32'06.449 "N 151 °14'35.422 "W 2.54 2.24 1.31 8322.00 69.840 244.040 4834.53 6215.40 - 3185.84 - 5342.69 1416464.72 2389558.07 60 °32'06.056 "N 151 °14'37.018 "W IMO 2.94 1.23 8415.00 72.880 244.940 4864.26 6303.39 - 3223.78 - 5422.22 1416384.51 2389521.61 60 °32'05.682 "N 151 °14'38.607 "W 3.39 3.27 0.97 8514.00 72.940 245.640 4893.35 6397.81 -3263.34 - 5508.18 1416297.84 2389483.64 60 °32'05.292 "N 151 °14'40.325 "W 0.68 0.06 0.71 8577.00 73.140 246.030 4911.73, 6457,90' X288.01 -556 .16 1416242.42 2389460,00 , , . 611°320 .048"14 <u 151°14'41.424"W „ 0.67 0.32 ' ; 0.62 Cook Inlet Natural Gas Actual Wellpath Report Vi1 STORA NaviTrak - OnTrak MWD <267- 10500•> BAKER TIAfI(a., - Page 5 of 6 HUGHES REFERENCE WELLPATII 11)F.NTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #4 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 4 Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 4 Facility Gas Storage Pad WELLPATH DATA (111 stations) MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North Latitude - Longitude DLS Build Rate Turn Ra 101 [°l 1 °1 Ift1 Ift[ Ifti [ft] [US ft] [US ft] [ ° /100ft] [ ° /100ft1 [ ° /100ft] 8652.00 73.070 246.710 4933.52 6529.40 - 3316.77 - 5628.91 1416176.16 2389432.45 60 °32'04.765 "N 151 °14'42.738 "W 0.87 -0.09 0.91 8747.00 75.720 247.120 4959.08 6620.49 - 3352.64 - 5713.07 1416091.35 2389398.14 60 °32'04.411 "N 151 °14'44.420 "W 2.82 2.79 0.43 8843.00 81.340 246.840 4978.16 6714.10 - 3389.42 - 5799.62 1416004.13 2389362.97 60 °32'04.049 "N 151 °14'46.149 "W 5.86 5.85 -0.29 8939.00 82.350 248.650 4991.78 6808.56 - 3425.41 - 5887.57 1415915.54 2389328.61 60 °32'03.694 "N - 151 °14'47.907 "W 2.14 1.05 1.89 9034.00 82.290 248.710 5004.47 6901.97 - 3459.64 - 5975.28 1415827.22 2389296.00 60 °32'03356 "N 151 °14'49.660 0 W 0:09 406 0.06 9131.00 82.570 249.080 5017.25 6997.33 - 3494.26 - 6064.98 1415736.90 2389263.04 60 °32'03.015 "N_ 151 °14'51.452 "W 0.48 0.29 0.38 9228.00 _ 85.050 249.300 5027.71 7092.88 - 3528.52 - 6155.12 1415646.15 2389230.46 - 60 °32'02.677 "N 151 °14'53.253 "W 2.57 2.56 0.23 9322.00 84.740 249.090 5036.07 7185.67 - 3561.77 - 6242.64 1415558.04 2389198.82 60 °32'02.349 "N 151 °14'55.002 "W 0.40 -0.33 -0.22 9419.00 83.900 249.120 5045.67 7281.34 - 3596.20 - 6332.81 1415467.25 2389166.07 60 °32'02.010 "N 151 °14'56.804 "W 0.87 -0.87 0.03 9514.00 86.070 248.990 5053.98 I' 7375.15 ` - 3630.03 .6421.19 1415378.26 2389133.88 60 °32'01.676 "N 151 °14'58.571 "W I _,. _ 2.29 2.28 - 0.14 9609.00 86.500 248.690 5060.13 7469A7 - 3664.25 - 6509.60 1415289.24 2389101.30 60 °32'01.339 "N ( 151 °15'00.337 "W 0.55 0.45 -0.32 9703.00 86.740 248.770 5065.68 7562.27 - 3698.29 - 6597.04 1415201.19 2389068.88 60 °32'01.003 "N 151 °15'02.085 "W 0.27 0.26 0.09 9799.00 87.330 248.400 5070.64 7657.40 - 3733.29 - 6686.30 1415111.31 2389035.53 60 °32'00.658 "N 151 °15'03.868 "W 0.73 0.61 -0.39 9894.00 87.260 249.740 5075.13 7751.47 - 3767.19 - 6774.93 1415022.07 2389003.27 60 °32'00.323 "N 151 °15'05.639 "W 1.41 -0.07 1.41 9989:00 ; " _ 86.060 251.510 5080.66 7845.10 379865 ' 6864.39' 1414932.05 238897147 60 151 °15'07.427 "W 2.25 - 126 1.86 10087.00 86.190 251.440 - 7941.40 - 3829.72 - 6957.10 1414838.79 2388944.12 60 °31'59.706 "N 151 °15'09.280 "W 0.15 0.13 -0.0 10184.00 86.340 251.320 5093.60 8036.76 - 3860.62 -7048.83 1414746.51 2388914.91 60 °31'59.402 "N 151 °15'11.113 "W 0.20 0.15 - 10278.00 86.370 251.310 5099.58 8129.20 - 3890.67 - 7137.69 1414657.11 2388886.50 60 °31'59.105 "N 151 °15'12.888 "W 0.03 0.03 -0. 10374.00 86.560 251.840 5105.50 8223.53 - 3920.96 - 7228.60 1414565.67 2388857.90 60 °31'58.806 "N 151 °15'14.705 "W 0.59 0.20 0.55 10441.00 87.020 251;830 5109.25. 289.34 ' - 3941.81 - 729216. 1414501.73 2388838.23 60 °31`58.601 "N 151 °15 °W 049 �� . ' ;� 069 401 10500.00 87.020 251.830 5112.32 8347.31 - 3960.19 - 7348.14 1414445.43 2388820.89 I 60 °31'58.419 "N 151 °15'17.094 "W 0.00 0.00 0.00 HOLE & CASING SECTIONS - Ref We bore: CLU Storage 4 Ref Wellpath: NaviTrak - OnTrak MWD<267- 10500•> String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W _ [IN [nl [nl [ft] [nl [nl [nl Eft] 114 20in Conductor 0.00 118.00 118.00 0.00 118.00 0.00 0.00 0.16 -0.20 13.375in Casing Surface 0.00 2467.00 2467.00 0.00 2089.80 0.00 0.00 - 548.49 - 896.29 9.625in Casing Intermediate 0.00 8608.00 8608.00 0.00 4920.73 0.00 0.00 - 3299.99 - 5590.30 Cook Inlet Natural. Gas Actual Wellpath Report VII STORA NaviTrak - OnTrak MWD <267- 10500'> BAKER �fa �a °p '� Page 6 of HUGHES REFERENCE WELLI'AT H IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #4 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 4 Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 4 Facility Gas Storage Pad TARGETS Name MD TVD North East Grid East Grid North Latitude Longitude Shap [ft] [ft] [ft] [ft] [US ft] [US ft] 5111.48 - 3875.15 - 7078.33 1414716.75 2388900.93 60 °31'59.258 "N 151°15'11.702"W point CLUS4 REVISED TD:11- Oct -11 WELLPATH COMPOSITION - Ref Wellbore: CLU Storage 4 Ref Wellpath: NaviTrak - OnTrak MWD<267- 10500'> Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore IftI ]ftl 0.00 2428.00 NaviTrak (Standard) NaviTrak MWD <267- 2482'> CLU Storage 4 2428.00 8577.00 AutoTrak G3 (Standard) ATK MWD<2578- 8619'> CLU Storage 4 8577.00 10500.00 OnTrak (Standard) OnTrak MWD <8652 - 10500'> CLU Storage 4 SURVEY LOG COMMENTS MD r Inclination Azimuth TVD Comment [ft] 101 [ [fti 10500.00 87.020 251.830 5112.32 Projected Data -NO SURVEY Cook Inlet Naluraj:Gus • • ry�� STORAQ HUGHES WellArchitect Survey Report Nis • , y a1�1� �'1 fi t: 111P A Actual Well • ath Geo • raphic Re • ort Report Generated 19 -Oct-11 at 06:01:44 Projection System NAD83 / TM Alaska SP, Zone 4 (5004), US feet Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) North Reference True Area Cook Inlet, Alaska (Kenai Peninsula) Scale 0.999954 Field Cannery Loop Unit (NAD83) Horizontal Reference Point Slot Facility Gas Storage Pad Vertical Reference Point Nabors 105E (RT) Slot Slot #4 MD Reference Point Nabors 105E (RT) Well CLU Storage 4 Field Vertical Referent Mean Sea Level Wellbore CLU Storage 4 Nabors 105E (RT) to Pad 53.55 ft Wellpath igIIIIIIIIIIIIIIIIIIIIIIIIk. NaviTrak - OnTrak MWD <267- 10500'> Nabors 105E (RT) to Mean Sea Level 53.55 ft Wellbore Last Revised , 10/17/2011 Pad Elevation estimated to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method - Minimum curvature Section Azimuth 241.50 Local North Local East Griot East Grid North - Latitude Longitude [r] [ft] [US ft] [US ft] - Slot Location 4615.67 8785.63 1421865.02 2392644.66 60 °32'37.442 "N 151 °12'50.228 "W Facility Reference Pt 1412992.83 2388198.60 60 ° 31'52.018 "N 151 °15'45.884 "W Field Reference Pt 1412992.83 2388198.60 60 °31'52.018 "N 151 ° 15'45.884 "W NAD 83 coordinates are converted to NAD 27 usln Cor•soon 6.0.1 US Arm Cor•s of En • ineers TVD from MD Inclin 01,m Azmmth TVD Fld Ref North East Grid East Grid North DLS Toolface Build Rate Turn Rate Vert Sect Comments [ [1 f l [ft] [ft] [ft] [It] [US ft] [US ft] [ft] [ft] [' /100ft) (1 ['110011] ('/100ft] [ft] 0.00 0.00 307.95 0.00 -53.55 0.00 0.00 1421885.02 2392644.66 281844.848 2392882.522 0.00 -52.05 0.00 0.00 0.00 267.00 0.56 307.95 287.00 213.45 0.80 -1.03 1421864.01 2392845.48 281843.838 2392883.342 021 -14.41 0.21 0.00 0.52 292.00 0.63 308.32 291.99 238.44 0.96 -1.24 1421883.80 2392645.64 281843.628 2392883.502 0.29 -79.88 0.28 -8.52 0.83 381.00 2.31 242.01 380.97 327.42 0.41 -3.21 1421861.81 2392845.13 281841.638 2392882.992 2.38 -7.63 1.89 -72.26 2.63 471.00 4.92 237.95 470.78 417.23 -2.49 -8.09 1421856.89 2392842.32 281836.718 2392880.182 2.91 6.67 2.90 -4.51 8.30 561.00 8.22 240.64 560.18 508.63 -7.70 -16.97 1421847.91 2392837.28 281827.738 2392875.142 3.88 -18.10 3.67 2.99 18.59 851.00 10.75 236.78 648.94 695.39 -15.45 -29.80 1421835.14 2392829.78 281814.968 2392867.622 2.90 -2.42 2.81 - 4.31 33.39 741.00 13.86 238.24 736.90 683.35 -25.96 -45.48 1421819.09 2392819.54 281798.918 2392857.402 3.24 5.80 3.23 -0.58 52.34 830.00 17.15 237.44 822.88 789.13 - 38.87 - 65.26 1421799.06 2392607.00 281778.888 2392844.861 3.94 16.06 3.92 1.35 75.90 926.00 20.81 240.25 913.51 859.98 -54.88 -91.87 1421772.16 2392591.49 281751.988 2392829.351 3.73 5.34 3.60 2.93 106.92 1022.00 23.04 240.83 1002.62 949.07 -72.42 - 122.95 1421740.77 2392574.53 281720.598 2392812.391 2.54 -18.29 2.53 0.60 142.60 1118.00 24.42 239.73 1090.50 1036.95 -91.58 - 158.49 1421708.88 2392555.99 281686.709 2392793.851 1.51 -15.97 1.44 -1.15 18122 1213.00 25.38 239.09 1178.67 1123.12 - 111.94 - 190.92 1421872.08 239253627 281651.909 2392774.13 1.05 -12.33 1.01 -0.67 221.19 1309.00 28.74 238.43 1262.91 1209.38 - 133.81 - 228.97 1421635.83 2392515.06 281615.459 2392752.92 1.45 -13.86 1.42 -0.69 283.32 1405.00 2922 237.18 1347.68 1294.13 - 157.82 - 265.07 1421597.10 2392491.78 281576.929 2392729.62 2.85 125 2.58 - 1.30 308.26 1502.00 32.70 237.32 1430.86 1377.30 - 184.81 - 307.03 1421554.64 2392485.55 281534.469 2392703.409 3.59 0.79 3.59 0.14 358.01 1597.00 36.11 237.40 1509.22 1455.67 - 213.76 - 352.23 1421508.92 2392437.45 281488.749 2392675.309 3.59 8.70 3.59 0.08 411.54 1893.00 38.60 238.01 1585.52 1531.97 - 244.87 - 401.47 1421459.12 2392407.25 281438.949 2392645.109 2.62 -10.84 2.59 0.84 469.66 1789.00 40.94 237.34 1859.30 1805.75 - 277.71 - 453.35 1421408.64 2392375.37 281386.469 2392613.228 2.48 -2.73 2.44 -0.70 530.93 III 1885.00 43.09 237.19 1730.63 1677.08 -312.46 - 507.40 1421351.97 2392341.83 281331.799 2392579.488 2.24 19.96 2.24 -0.16 595.00 1981.00 45.37 238.35 1799.41 1745.86 - 348.16 - 564.05 1421294.67 2392306.99 281274.5 2392544.848 2.52 12.53 2.37 1.21 861.82 2077.00 48.51 239.28 1864.95 1811.40 384.48 - 624.05 1421234.01 2392271.80 281213.84 2392509.657 3.35 -4.78 327 0.97 731.88 2172.00 51.90 238.92 1925.74 1872.19 - 421.94 -686.67 1421170.71 2392235.48 281150.54 2392473.337 3.58 -15.40 3.57 -0.38 804.79 2268.00 54.69 237.98 1983.12 1929.57 - 482.22 - 752.25 1421104.41 2392196.42 _ 281084.24 2392434.276 3.01 12.04 2.91 -0.98 881.64 2384.00 57.87 238.78 2038.40 1982.85 - 504.07 - 820.24 1421035.66 2392155.83 281015.49 2392393.686 3.38 41.92 3.31 0.83 961.36 2428.00 59.09 240.05 2069.86 2016.31 - 531.82 - 887.20 1420988.19 2392128.95 280968.02 2392366.805 2.55 34.50 1.91 1.98 1015.88 2578.00 60.41 241.09 2145.43 2091.88 - 595.48 - 980.06 1420874.19 2392067.39 280854.02 2392305.244 1.06 6.44 0.88 0.89 1145.43 2673.00 61.50 241.23 2191.55 2138.00 - 835.54 - 1052.81 1420800.72 2392028.88 280780.551 2392266.534 1.15 -90.02 1.15 0.15 1228.48 2768.00 61.50 241.16 2236.88 2183.33 - 875.77 - 1125.97 1420728.83 2391989.81 280706.661 2392227.663 0.06 -88.51 0.00 -0.07 1311.97 2863.00 61.51 240.75 2282.20 2228.65 - 716.30 - 1198.96 1420653.11 2391950.83 280632.941 2392188.483 0.38 -94.35 0.01 -0.43 1395.45 2960.00 61.47 240.13 2328.50 2274.95 - 758.35 - 1273.10 1420578.21 2391909.96 280558.041 2392147.812 0.58 -84.15 -0.04 -0.64 1480.68 3057.00 61.49 239.91 2374.82 2321.27 - 800.94 - 1348.93 1420503.81 2391888.74 280483.441 2392106.592 0.20 -91.23 0.02 -0.23 1565.88 3153.00 81.48 239.31 2420.85 2387.10 - 843.81 - 1419.69. 1420430.08 2391827.42 280409.911 2392065.271 0.55 -80.78 -0.01 -0.82 1650.19 3248.00 61.49 239.24 2468.00 2412.45 - 886.26 - 1491.45 1420357.55 2391788.10 280337.381 2392023.951 0.07 -90.17 0.01 -0.07 1733.60 3343.00 61.49 238.52 2511.34 2457.79 - 929.41 - 1582.91 1420285.30 2391744.29 280265.132 2391982.14 0.67 -82.82 0.00 -0.76 1816.99 3440.00 61.50 238.43 2557.64 2504.09 - 973.98 -1635.57 1420211.84 2391701.07 280191.672 2391938.92 0.08 -13.05 0.01 -0.09 1902.11 3535.00 61.69 238.38 2602.83 254928 - 1017.76 - 1706.75 1420139.87 2391658.61 280119.702 2391896.46 0.21 -93.27 0.20 -0.05 1985.55 3630.00 81.67 237.97 2647.90 2594.35 - 1081.86 - 1777.81 1420088.01 2391815.83 280047.842 2391853.679 0.38 -93.15 -0.02 -0.43 2069.04 3726.00 81.66 237.78 2693.46 2839.91 - 1106.80 - 1849.36 1419995.65 2391572.21 . 279975.482 2391810.059 0.19 17.78 -0.01 -022 2153.37 Page 1 of 3 TVD from MD Inclination Azimuth TVD Fld Ref North L. Grid Fast Grid North DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [°l [I [ft] [ft] [111 Ill] [ IS n] [US ft] [II] [ft] [ ° 11000] [ "1 [ °1100ft] [. Boot] [ft] 3821.00 61.88 237.84 2738.40 2684.85 - 1151.41 - 1920.19 1419924.01 2391528.93 279903.842 2391766.779 0.24 - 106.86 0.23 0.08 2238.89 _ 3917.00 61.84 237.89 2783.87 2730.12 - 1196.56 - 1991.79 1419851.59 2391485.11 279831.423 2391722.958 0.14 94.54 -0.04 -0.18 2321.37 4013.00 61.82 237.98 2828.99 2775.44 -1241.61 -2063.43 1419779.13 2391441.38 279758.963 2391679.228 0.27 -54.10 -0.02 0.30 2405.82 4109.00 61.98 237.73 2874.21 2820.86 - 1286.67 - 2135.13 1419708.62 2391397.66 279686.453 2391635.508 0.28 81.41 0.17 -0.28 2490.34 4204.00 62.06 238.32 2918.78 2865.23 - 1331.10 - 2208.30 1419634.65 2391354.56 279614.483 2391592.407 0.55 97.28 0.08 0.82 2574.08 4300.00 82.01 238.77 2963.80 2910.25 - 1375.34 - 2278.63 1419561.52 2391311.65 279541.353 2391549.497 0.42 -90.04 -0.05 0.47 2658.75 4396.00 62.01 238.59 3008.85 2955.30 - 1419.41 - 2351.05 1419488.30 2391288.93 279468.133 2391506.777 0.17 85.75 0.00 -0 .19 2743.42 4492.00 62.03 238.89 3053.89 3000.34 - 1463.40 - 2423.52 1419415.03 2391228.29 279394.864 2391464.136 0.28 88.66 0.02 0.31 2828.10 4588.00 62.04 239.34 3098.91 3045.38 - 1506.92 - 2496.28 1419341.48 2391184.11 279321.314 2391421.956 0.41 - 170.90 0.01 0.47 2912.82 4887.00 61.82 239.30 3145.50 3091.95 - 1551.50 - 2571.41 1419265.55 2391140.94 279245.384 2391378.786 0.23 84.61 -0.22 -0.04 3000.11 4781.00 61.88 240.00 3189.84 3136.29 - 1593.37 - 2842.93 1419193.27 2391100.39 279173.104 2391338.235 0.66 -87.66 0.08 0.74 3082.95 4877.00 81.89 239.73 3235.08 3181.53 - 1635.88 - 2718.18 1419119.27 2391059.24 279099.104 2391297.085 0.25 94.39 0.01 -0.28 3187.59 4971.00 81.87 240.03 3279.39 3225.84 - 1677.49 - 2787.87 1419046.81 2391018.97 279026.644 2391256.815 0.28 90.02 -0.02 0.32 3250.48 5067.00 61.87 240.11 3324.65 3271.10 - 1719.73 - 2861.24 1418972.88 2390978.09 278952.514 2391215.934 0.07 -72.35 0.00 0.08 3335.09 5163.00 82.06 239.44 3389.77 3316.22 - 1762.38 - 2934.48 1418898.89 2390938.80 278878.525 2391174.644 0.65 92.10 0.20 -0.70 3419.79 5259.00 62.05 239.76 3414.76 3361.21 - 1805.30 - 3007.80 1418824.77 2390895.24 278804.605 2391133.084 0.29 - 100.78 -0.01 0.33 3504.55 5355.00 62.00 239.48 3459.79 3406.24 - 1848.19 - 3080.74 1418750.88 2390853.71 278730.695 2391091.554 0.28 -85.14 -0.05 -0.31 3589.28 5450.00 82.04 238.94 3504.36 3450.81 - 1891.14 - 3152.80 1418678.02 2390812.09 278657.855 2391049.933 0.49 115.90 0.04 -0.55 3673.11 5548.00 82.01 239.01 3549.39 3495.84 - 1934.84 - 3225.45 1418804.58 2390769.74 278584.415 2391007.583 0.07 60.50 -0 .03 0.07 3757.81 5642.00 82.04 239.07 3594.43 3540.88 - 1978.48 - 3298.18 1418531.08 2390727.48 278510.915 2390965.323 0.06 -79.03 0.03 0.08 3842.52 5738.00 62.09 238.78 3639.40 3585.85 - 2022.24 - 3370.80 1418457.65 2390685.05 278437.485 2390922.893 0.27 92.55 0.05 -0.30 3927.24 5834.00 62.08 239.04 3884.34 3630.79 - 2068.04 - 3443.44 1418384.21 2390642.59 278364.045 2390880.433 0.24 - 158.16 -0.01 0.27 4011.99 5929.00 81.86 238.94 3728.99 3675.44 - 2109.24 - 3515.32 1418311.56 2390600.73 278291.396 2390838.572 0.25 -82.86 -0.23 -0.11 4095.78 6025.00 61.88 238.76 3774.25 3720.70 - 2153.04 - 3587.77 1418238.31 2390558.28 278218.146 2390796.122 0.17 - 102.08 0.02 -0.19 4180.33 6121.00 81.82 238.44 3819.54 3765.99 - 2197.14 - 3660.02 1418185.27 2390515.52 278145.106 2390753.362 0.30 -60.46 -0.08 -0.33 4264.87 6219.00 61.88 236.36 3885.79 3812.24 - 2242.41 - 3733.61 1418090.88 2390471.62 278070.696 2390709.462 0.08 5.04 0.04 -0.08 4351.14 8314.00 81.96 238.37 3910.52 3858.97 - 2288.37 - 3804.98 1418018.71 2390428.98 277998.546 2390666.822 0.11 82.35 0.11 0.01 4434.83 8409.00 82.03 238.95 3955.13 3901.58 - 2329.99 - 3878.80 1417946.28 2390388.69 277926.116 2390624.532 0.54 - 118.74 0.07 0.81 4518.60 6505.00 61.99 238.88 4000.18 3946.63 - 2373.77 - 3949.19 1417872.90 2390344.26 277852.737 2390582.101 0.09 - 189.99 -0.04 -0.09 4603.28 6600.00 61.94 238.85 4044.83 3991.28 - 2417.14 - 4020.96 1417800.35 2390302.22 277780.187 2390540.061 0.05 60.50 -0.05 -0.01 4687.05 6696.00 62.00 238.97 4089.95 4036.40 - 2480.90 - 4093.53 1417728.99 2390259.81 277706.827 2390497.651 0.13 -90.02 0.08 0.12 4771.70 6791.00 82.00 238.89 4134.55 4081.00 - 2504.19 - 4165.37 1417654.38 2390217.86 277634.197 2390455.701 0.07 98.82 0.00 -0.08 4855.50 6887.00 61.98 239.04 4179.63 4128.08 - 2547.89 - 4237.99 1417580.95 2390175.51 277560.787 2390413.351 0.14 84.88 -0.02 0.16 4940.17 6981.00 82.00 239.29 4223.77 4170.22 - 2590.42 - 4309.25 1417508.92 2390134.30 277488.757 2390372.141 0.24 89.02 0.02 0.27 5023.09 7077.00 62.01 239.87 4288.84 4215.29 - 2633.34 - 4382.35 1417435.05 2390092.73 277414.887 2390330.571 0.53 -80.63 0.01 0.60 5107.81 7173.00 82.06 239.53 4313.85 4260.30 - 2676.12 -4455.58 1417381.07 2390051.31 277340.907 2390289.151 0.32 - 105.85 0.05 -0.35 5192.58 7269.00 82.01 239.33 4358.87 4305.32 - 2719.25 - 4528.56 1417287.28 2390009.55 277267.118 2390247.391 0.19 87.22 -0.05 -0.21 5277.29 7365.00 82.03 239.78 4403.91 4350.36 - 2762.20 - 4801.65 1417213.42 2389967.95 277193.258 2390205.791 0.41 - 100.73 0.02 0.47 5362.02 7461.00 62.00 239.60 4448.96 4395.41 - 2804.99 - 4674.84 1417139.46 2389926.52 277119.298 2390164.361 0.17 90.03 -0.03 -0.19 5446.75 7556.00 82.00 239.73 4493.56 4440.01 - 2847.35 -4747.23 1417086.29 2389885.50 277046.128 2390123.34 0.12 - 112.25 0.00 0.14 5530.59 7654.00 81.91 239.48 4539.83 4486.08 - 2891.11 - 4821.84 1416990.90 2389843.13 276970.738 2390080.97 0.24 - 100.12 -0.09 -0.26 5617.03 7748.00 81.86 239.16 4583.93 4530.38 - 2933.42 -4893.14 1416918.83 2389802.15 276898.668 2390039.99 0.30 -95.08 -0.05 -0.34 5699.88 Illk 7843.00 61.83 238.77 4828.76 4575.21 - 2978.60 - 4964.91 1416846.28 2389780.30 276826.118 2389998.14 0.38 86.80 -0.03 -0.41 5783.56 7939.00 81.84 238.97 4874.07 4620.52 - 3020.35 - 5037.36 1416773.04 2389717.89 276752.879 2389955.73 0.18 38.00 0.01 0.21 5868.10 8035.00 63.10 240.07 4718.44 4864.89 - 3063.53 - 5110.72 1418898.90 2389676.08 276678.739 2389913.92 1.68 3824 1.31 1.15 5953.18 8131.00 64.89 241.82 4760.54 4706.99 - 3105.55 - 5186.07 1416622.79 2389635.48 276602.629 2389873.3 2.38 28.25 1.88 1.61 6039.45 8228.00 87.02 242.88 4799.24 4745.69 - 3145.95 - 5262.84 1416545.29 2389596.48 276525.129 2389834.32 2.54 21.48 2.24 1.31 8126.19 8322.00 89.84 244.04 4834.53 4780.98 - 3185.84 - 5342.69 1416464.72 2389558.07 276444.559 2389795.91 3.15 15.82 2.94 1.23 6215.40 8415.00 72.88 244.94 4884.26 4810.71 - 3223.78 - 542222 1416384.51 2389521.61 276364.349 2389759.45 3.39 84.98 3.27 0.97 8303.39 8514.00 72.94 245.64 4893.35 4839.80 - 3263.34 - 5508.18 1418297.84 2389483.84 276277.679 2389721.48 0.68 61.86 0.08 0.71 6397.81 8577.00 73.14 248.03 4911.73 4858.18 - 3288.01 - 5563.18 1418242.42 2389460.00 276222.259 2389697.839 0.87 96.24 0.32 0.82 6457.90 8652.00 73.07 246.71 4933.52 4879.97 - 3318.77 - 5628.91 1416176.18 2389432.45 276155.999 2389670.289 0.87 8.53 -0.09 0.91 6529.40 8747.00 75.72 247.12 4959.08 4905.53 - 3352.64 - 5713.07 1418091.35 2389398.14 276071.189 2389635.979 2.82 -2.82 2.79 0.43 8820.49 8843.00 81.34 246.84 4978.16 4924.61 - 3389.42 - 5799.62 1416004.13 2389362.97 275983.969 2389600.809 5.88 60.72 5.85 -0.29 8714.10 8939.00 82.35 248.65 4991.78 4938.23 - 3425.41 - 5887.57 1415915.54 2389328.61 275895.379 2389566.448 2.14 135.26 1.05 1.89 6808.56 9034.00 82.29 248.71 5004.47 4950.92 - 3459.64 - 5975.28 1415827.22 2389298.00 275807.059 2389533.838 0.09 52.87 -0.06 0.06 6901.97 9131.00 82.57 249.08 5017.25 4963.70 - 349428 - 6064.98 1415736.90 2389263.04 275716.738 2389500.878 0.48 5.05 029 0.38 8997.33 9228.00 85.05 249.30 5027.71 4974.16 - 3528.52 - 8155.12 1415848.15 2389230.48 275625.988 2389468.297 2.57 - 146.00 2.56 0.23 7092.88 9322.00 84.74 249.09 5036.07 4982.52 - 3561.77 - 6242.64 1415558.04 2389198.82 275537.878 2389436.657 0.40 177.97 -0.33 -0.22 7185.67 9419.00 83.90 249.12 5045.67 4992.12 - 3598.20 - 8332.81 1415487.25 2389168.07 275447.088 2389403.907 0.87 -3.42 -0.87 0.03 7281.34 9514.00 86.07 248.99 5053.98 5000.43 -3630.03 - 6421.19 1415378.26 2389133.88 275358.098 2389371 716 2.29 -34.88 2.28 -0.14 7375.15 Page 2 of 3 TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North DLS Toolface Build Rate Turn Rate Veil Sect Comments [ft] [1 [ -] [ft] [ft] [ft] [It] [US ft] [US ft] [It] [ft] [ "1100ft] [ "] [. /100ft] [I1 00ft] [ft] 9609.00 86.50 248.69 5060.13 5006.58 - 3684.25 - 8509.60 1415289.24 2389101.30 275269.078 2389339.136 0.55 18.41 0.45 -0.32 ' 7469.17 9703.00 88.74 248.77 5065.68 5012.13 -3698.29 - 8597.04 1415201.19 2389068.88 275181.028 2389306.716 0.27 -32.07 0.26 0.09 7562.27 9799.00 87.33 248.40 5070.64 5017.09 - 3733.29 - 8888.30 1415111.31 2389035.53 275091.148 2389273.366 0.73 93.03 0.61 -0.39 7657.40 9894.00 87.26 249.74 5075.13 5021.58 - 3767.19 - 6774.93 1415022.07 2389003.27 275001.908 2389241.105 1.41 124.23 -0.07 1.41 7751.47 9989.00 86.08 251.51 5080.66 5027.11 - 3798.85 - 6864.39 1414932.05 2388973.47 274911.887 2389211.305 2.25 -28.25 -1.26 1.86 7845.10 10087.00 86.19 251.44 5087.28 5033.73 - 3829.72 - 6957.10 1414838.79 2388944.12 274818.626 2389181.958 0.15 -38.60 0.13 -0.07 7941.40 10184.00 86.34 251.32 5093.80 5040.05 - 3860.62 -7048.83 1414748.51 2388914.91 274726.344 2389152.752 0.20 -18.40 0.15 -0.12 8036.76 10278.00 86.37 251.31 5099.58 5048.03 - 3890.67 - 7137.89 1414857.11 2388886.50 274636.941 2389124.346 0.03 70.26 0.03 -0.01 8129.20 10374.00 88.56 251.84 5105.50 5051.95 - 3920.96 - 7228.60 1414565.67 2388857.90 274545.499 2389095.75 0.59 -1.24 0.20 0.55 8223.53 10441.00 87.02 251.83 5109.25 5055.70 - 3941.81 - 7292.16 1414501.73 2388838.23 274481.558 2389076.083 0.89 0.00 0.69 -0.01 8289.34 10500.00 87.02 251.83 5112.32 5058.77 - 3960.19 - 7348.14 1414445.43 2388820.89 274425.256 2389058.746 0.00 0.00 0.00 0.00 8347.31 Projected Data - NO SURVEY • • 1 I I Page 3 of 3 • Schlumberger CLU- STORAGE #4: Cementing Recap Executive Summary: Surface Casing 2467' MD: The Surface Casing Cement job was accomplished on 10 -2 -2011, with the primary tiv to observe cement returns to surface, and provide sufficient shoe strength e p gth and isolation to drill ahead. Planning called for 75% Open -hole excess, based on the volume to surface on the previous well. 35 bbls of spacer was pumped ahead of the cement. With approximately 153 bbls of Lead slurry pumped, spacer was seen at surface. Lead was continued for 35 bbls, and then shut down with 189 bbls total of 12.0 ppg lead slurry pumped. The volume indicates approximately 30% excess, or 16.7" average hole size. 70.5 bbls of 15.4 ppg Tail slurry were pumped. Approxoimately 107 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 15.4 ppg EMW FIT test. Costs were in -line with preliminary estimates. Intermediate Casing 8608' MD: The Intermediate Cement job was accomplished on 10 -12 -2011. The primary objective was to ensure zonal isolation from the shoe to 8197' 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 3407' MD. Pre job planning called for 10% open -hole excess, this was increased to 15% based on the previous well, and drilling indications prior to starting the job. 303 bbls of 12.0 ppg Lead slurry were pumped. 44 bbls of 14.0 ppg F1exSTONE Tail slurry was pumped. The plug was bumped as anticipated, and the stage collar opened successfully. An anullar volume from the stage collar to surface was pumped. There were 80 bbls of contaminated mud returned to surface while circulating at the DV tool. The second stage was pumped using 201 bbls of 12.0 ppg Lead slurry. The closing plug was dropped and the stage collar successfully closed. Mud contaminated with cement was reported at surface.. Drill out was accomplished without incident, and a Leak - Off -Test performed indicating a 15.53 ppg EMW at leak -off. A bond -log was run after the next hole interval had been drilled. Results were acceptable. Costs were in -line with preliminary estimates. • • Schlumberger Production Liner 8424' — 10.498' MD: Drilling in the Production interval proved to be problematic with some tight spots and lost circulation occuring. The hole was stabilized using conventional LCM pills. Liner was run and set, circulation was established with full returns. The Production Liner Cement job was accomplished on 10 -21 -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. 68 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. (Estimated 7 -10 bbls fluid lost during cement job.) There was a clear pressure increase when cement entered the liner -lap during displacement. 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. • : . . • • u • 1 • 1 . • I i - 1 • 1 1 • . • 11 i • 1 . Issues keeping sufficient water supply from the rig pumps. -Starts out with good delivery at +6 BPM but after about 50 -80 bbls begins to slow down to 1 -2 BPM. - Charge pump apparently begins to cavitate as the fluid level decreases. - Closing off the recirculation valve appears to maintain prime, but could cause overheating of the pump packing. -Will likely require constant monitoring from the rig crew during the job if the pump cannot be dead - headed for more than a minute or two. NOTE:This problem was sorted out, and subsequent jobs have been done with no issues. Surface excess cement plan of 75% appears to be sufficient without being overly excessive. - Recommend continuing, unless drilling parameters indicate otherwise. -15% Excess on the Intermediate Casing appears to be ideal. Refinement of the Lead Slurry formulation for the Surface and Intermediate strings, resulted in lower additive volumes, especially retarder. -This not only reduces the cost, but makes the execution of the job easier. 1 1 • 1 1 Schlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 4 Surface Lead Field Blend Si natures 1 Fluid No : PAK 11sfc3075 Client : CINGSA Location / Rig : Nabors 105 Date : Sep -25 -2011 Well Name : CLU Storage 4 Field : Cannery Loop M. Schinnell Job Type 13 3!8" Surface Depth 2464.0 ft TVD 2086.0 ft 1 BHST 90 degF BHCT 80 degF BHP 1000 psi Starting Temp. 80 degF Time to Temp. 00:30 hr:mn Heating Rate 0.00 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 gaUsk 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 gallsk Base Fluid D046 0.200 %BWOC Antifoam TU1A0243A0 D079 2.000 %BWOC Extender 44203012A D020 3.000 %BWOC Extender 12087CMI Gel D110 0.150 gallsk Retarder TU0G0338A5 Rheology Tem .: rature 80 d: , F 80 de, F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 38.0 38.0 38.0 66.0 66.0 66.0 200 37.0 35.0 36.0 64.0 61.0 62.5 100 34.0 31.0 32.5 60.0 59.0 59.5 60 35.0 30.0 32.5 58.0 55.0 56.5 30 32.0 29.0 30.5 64.0 51.0 57.5 6 30.1 27.2 28.6 37.3 36.2 36.7 3 20.6 25.7 23.2 18.4 25.0 21.7 10 sec Gel 17.9 deg - 19.11 Ibf/100ft2 17.4 deg - 18.57 lbf /100ft2 10 min Gel 30.9 deg - 32.98 Ibf/100ft2 23.6 deg - 25.19 Ibf /100ft2 Rheo. computed Viscosity : 7.944 cP Yield Point: 30.38 Ibf /100ft2 Viscosity: 9.755 cP Yield Point: 56.15lbf/100ft2 Thickenins Time Consistency Time 30 Bc 04:42 hr:mn 70 Bc 05:48 hr:mn 100 Bc 06:25 hr:mn UCA Compressive Strength 05:33 hr:mn 50 psi 12:00 hr:mn 179 psi 24 :00 hr:mn 350 psi 48:00 hr:mn 450 psi Free Fluid Trace mU250mL in 2 hrs At 80 degF and 45 deg incl Sedimentation : None Water Analysis CINGSA Water Sample Sep -20 -2011 Chloride Calcium Magnesium 500 mg/L 0 mg/L 40 mg/L Page 1 Instrument: 8240 #4 S ch 1 u m berger Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 250 12000 -- 100- 225 10800 '- 200- 9600 i:_ / 175 8480 150- . 7200 m f M _ 0 is 125- . 6000 a ca_ , C 100- 4800 i) r ji> _ - -. — ■) - 75- 3660 - • 50- 2400 25- 1200 —{3 3 0 ' 0 O , i i i i _ 1 _ 1 III 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 Time (HH:MM) Location: CLU Storage 4 30 Bc: 4:43:25 File Name: pakl lsfc3075- 1 -cell4.tst Customer: CINGSA 50 Bc: 5:25:50 Supervisor: {Info:Supervisor} 70 Bc: 5:49:10 Test Started: 9/22/2011 3:49:38 PM Density: 12.0Ibm /gal 100 Bc: 6:25:25 Test Stopped: 9/22/2011 10:15:04 PM System: D929 +.2 %D46 +2 %D79 +3$D20 +.15gpsD110 BHCT: 80 degF Printed: 9/25/2011 1:55:16 PM BHST: 90 degF Job Type: 13 3/8" Surface Lead (Load 1) Rig Name: Nabors 105 Page 1 Instrument: 7222 -460 #1 Sch I umberger Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 25 12000. 100 7 225 10800 90 = I 20 9600 807 • 175 8400 70 150 7200- m 60 - - >, - v 125 w 6000- 0 50- 1 / ,,,' ti - .N - a) n- - 0o t 1– - 100 _ 4800- U 40- 75- 0 3600 - v 30 - •-.^'' 50- 2400 20 _ r 25- 1200 - 10 — – ---^ -r O - - 4111 0 0 0 I ( I I I It r II i f i I I I r t i l 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 Time (HH:MM) Location: CLU Storage 4 30 Be: 3:39:10 File Name: pakl lsfc3085- 1- ce111.tst Customer: CINGSA 50 Bc: 4:58:40 Supervisor: {Info:Supervisor} 70 Be: 5:32:05 Test Started: 9/28/2011 7:16:02 PM Density: 12.0 Ibm/gal 100 Bc: 6:10:15 Test Stopped: 9/29/2011 1:26:18 AM System: D929 +.2 %D46 +.2° %79 +3 %D20 +.15gpsD110 I BHCT: 80 degF Printed: 9/29/2011 11:59:39 AM BHST: 90 degF Job Type: 13 3/8" Surface Lead (load2) Rig Name: Nabors 105 Page 1 Instrument: Twin Left Current Compressive Strength: 452 psi Schlumberger Sampling Period: 30 seconds Final Compressive Strength: 452 psi at 48:19:00 Prudhoe Bay Well Services Laboratory Compressive strength type A (less than 14 lb /gal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 207 100 500 18- 90 450 - 16- 80 400- �«- r'` - - 110 14- 70 350- r, f" a J __ O 12- 1 - 60 rn 300 — o U - _ A, ; E - _ 5) 82 - 107 m 50 m 250 i E - > � r i- _ �, .c 8 r a ' 40 200 - ,.x m - o ~ V - 6 30 150- f 1 r 4- 20 0 100— 2 10 50 0 0 0 • r , , s` i ■ , , , 1 , , ■ , I ■ , , , I I 1 , , , 1 I , I I 1 , , , , , , , , 1 I I I , 1 • 0 5 10 15 20 25 30 35 40 45 50 Time (HH) Location: CLU- Storage 4 50 psi: 5:33:30 File Name: pak11sfc3075- UCA3.tst Customer: CINGSA 500 psi: N/A Supervisor P. Cahill 1000 psi: N/A Test Started: 9/23/2011 1:19:45 PM Density: 12.0lbm /gal 2000 psi: N/A Test Stopped: 9/25/2011 1:38:52 PM System: D929 +.2 %D46 +2 %D79 +3 %D20 +.15gpsD110 BHCT: 80 degF 12 hr: 179 psi Printed: 9/25/2011 1:54:16 PM BHST: 90 degF 24 350 psi Job Type: 13 3/8" Surface Lead Page 1 Rig Name: Nabors 105 • • Schlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 4 Surface Tail Field Blend SI gyres 1 Fluid No : PAK 11sfc3076 Client : CINGSA Location / Rig : Nabors 105 Date : Sep -29 -2011 Well Name : CLU Storage 4 Field : Cannery Loop M. Schinnell Job Type 13 3/8" Surface Depth 2464.0 ft TVD 2086.0 ft I BHST 90 degF BHCT 80 degF BHP 1000 psi I Starting Temp. 80 degF Time to Temp. 00:30 hr:mn Heating Rate 0.00 degF /min Starting Pressure 500 psi Time to Pressure 00:30 hr:mn Schedule ( ) Composition Slurry Density 15.40 lb/gal Yield 1.22 ft3 /sk Mix Fluid 5.492 gal /sk Solid Vol. Fraction 39.783 % Porosity 60217 % Slurry type Conventional Code Concentration Sack Reference Component Blend Density Lot Number D929 94.00 lb of CEMENT Blend 197.27 Ib/ft3 Fresh water 5.492 gaUsk Base Fluid D046 0.200 %BWOC Antifoam TU1A0243A0 D065 0.400 %BWOC Dispersant Y12212SCL D167 0.200 %BWOC Fluid loss GBG0018466 Rheolopy Tem • = rature 80 d: !F 80 des F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 70.0 70.0 70.0 137.0 137.0 137.0 200 52.0 62.0 57.0 118.0 119.0 118.5 100 34.0 42.0 38.0 98.0 103.0 100.5 60 25.0 35.0 30.0 90.0 99.0 94.5 30 18.0 28.0 23.0 83.0 96.0 89.5 6 10.1 21.9 16.0 62.8 79.4 71.1 3 7.7 21.7 14.7 30.9 61.7 46.3 10 sec Gel 22.8 deg - 24.34 Ibf /100ft2 41.5 deg - 44.29 lbf /100ft2 10 min Gel 66.4 deg - 70.87 Ibf /100ft2 42.7 deg - 45.57 Ibf/100ft2 Rheo. computed Viscosity: 52.699 cP Yield Point: 19.54 Ibf /100ft2 Viscosity: 53.070 cP Yield Point: 83.62 Ibf /100ft2 Thickenin s Time Consistency Time 30 Bc 02:18 hr:mn 70 Bc 06:51 hr:mn 100 Bc 08:03 hr :mn Free Fluid 1.2 mU250mL in 2 hrs At 80 degF and 45 deg Intl Sedimentation : None Fluid Loss API Fluid Loss 252 mL 46 mL in 4 min at 80 degF and 1000 psi Water Analysis CINGSA Water Sample Sep-20 -2011 Chloride Calcium Magnesium < 500 mg /L 0 mg /L 40 mg /L Page 1 Instrument: 8240 #5 Sch 1 um berger Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 250 12000 - 100 225 10800- 90 _ / 200 9600 - 80 III 175 84007 70 151 - 7200- m 60 U m 12 6000 - a 50 10s a 4800- v 40 0 ::::lv 30 20 25 1200- r 10 ,- ,., �-._... -_,. -.._. 0 0 0 , i , I i 1 1 1 i 1 1 1 1 1 1 1 i 1 1 1 1 1 f 1 1 I • 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 Time (HH:MM) Location: CLU Storage 4 30 Bc: 2:18:55 File Name: pak11sfc3076- 1- ce115.tst Customer: CINGSA 50 Bc: 4:47:00 Supervisor: Cahill 70 Bc: 6:53:40 Test Started: 9/28/2011 6:50:52 PM Density: 15.4Ibm /gal 100 Be: 8:03:50 Test Stopped: 9/29/2011 2:54:42 AM System: 0929 +.2 %D46 +.4 %D65 +.2 %0167 BHCT: 80de 9 F Printed: 9/29/2011 11:58:49 AM BHST: 90 degF Job Type: 13 3/8" Surface Tail Rig Name: Nabors 105 Page 1 Instrument: UCA #1 Current Compressive Strength: 2118 psi Schlumberger Sampling Period: 30 seconds Final Compressive Strength: 2118 psi at 24:42:30 Prudhoe Bay Well Services Laboratory Compressive strength type B (more than 14 lb /gal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 101 2* 2500- 91 18 2250 — ' • 81 16 20007 III 71 14 17507 JJ"" a - k 61 c i 12 i 15007 3v v g 51 d 11 12507 ci, °' H ' C —�- F' 41 1 8 g. 1000- U . 31 6 750 o v = 21 4 500 11 2 250 0 0 0 i i a 1 a ■ a 1 11 i a II a a I • ill a el • 0:00 5:00 10:00 15:00 20:00 25:00 Time (HH:MM) Location: CLU- Storage 4 50 psi: 5:35:30 File Name: pakl lsfc3076- UCAI.tst Customer: CINGSA 500 psi: 9:21:00 Supervisor: P. Cahill 1000 psi: 11:53:30 Test Started: 9/29/2011 6:43:52 AM Density: 15.4lbm/gal 2000 psi: 22:32:30 Test Stopped: 9/30/2011 7:26:51 AM System: D929+.2%D46+.4%D65+.2%D167 BHCT: 80 degF 12 hr: 1017 psi Printed: 9/30/2011 8:46:41 AM BHST: 90 degF 24 hr: 2075 psi Job Type: 13 3/8° Surface Tail Page 1 Rig Name: Nabors 105 III • Schlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 4 Intermediate Lead Field Blend SI gyres Fluid No : PAK 11int4001 Client : CINGSA Location / Rig : Nabors 105 Date : Oct-09 -2011 Well Name : CLU Storage 4 Field : Cannery Loop Daniel Himel Job Type 9 5/8" Intermediate Depth 8750.0 ft TVD 5000.0 ft L BHST 105 degF BHCT 90 degF BHP 2392 psi Starting Temp. 80 degF Time to Temp. 00:30 hr:mn Heating Rate 0.33 degF /min 1 Starting Pressure 500 psi Time to Pressure 00:30 hr:mn Schedule 0 ) Composition Slurry Density 12.00 lb/gal Yield 2.45 ft3 /sk Mix Fluid 14.538 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 14.338 gal /sk Base Fluid D046 0.200 %BWOC Antifoam TU1A0243A0 D020 3.000 %BWOC Extender 44210303A D079 2.000 %BWOC Extender 12087CMI Gel D110 0.200 gal /sk Retarder TU0G0338A5 Rheology Tem • erature 80 de! F 90 .: !F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 26.0 26.0 26.0 72.0 72.0 72.0 200 23.0 24.0 23.5 70.0 69.0 69.5 100 21.0 22.0 21.5 70.0 61.0 65.5 60 21.0 21.0 21.0 64.0 59.0 61.5 30 21.0 20.0 20.5 61.0 58.0 59.5 6 19.7 18.7 19.2 33.9 32.3 33.1 3 16.6 18.1 17.3 16.6 23.6 20.1 10 sec Gel 17 deg -17.61 Ibf /100ft2 23 deg - 24.551bf/100ft2 10 min Gel 36 deg - 38.42 ibf /100it2 26 deg - 28.18 Ibf /100ft2 Rheo. computed Viscosity: 6.144 cP Yield Point: 19.68 lbf/100ft2 Viscosity : 12.658 cP Yield Point: 60.351bf /100ft2 Thickenin, Time Consistency Time 30 Bc 03:47 hr:mn 70 Bc 04:49 hr:mn 100 Bc 05:18 hr:mn Free Fluid Trace mU250mL in 2 hrs At 80 degF and 45 deg inc.! Sedimentation : None Water Analysis Chloride Calcium Magnesium <500.00 mg/I 0.00 mg /l 40.00 mg /I Page 1 Instrument: 8240 #5 Sch I u m berge r Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 250— 12000- 100- 225— 10890 4, 200- 9690 i-- / III , 175— 8490 — ' - r 150- . 7200 0 1• / /` N - iV r 7 � m 125 6000 'a - 100 4890 *-- • -1/ 75 3690 �f.... 0 - 50- 2480 u 25- 1200 Y ;a4 - ,, - • 0:00 1:00 2:00 3:00 4:00 5:00 6:00 Time (HH:MM) Location: CLU Storage 4 30 Be: 3:47:05 File Name: pakl lint4001- 2- cell5.tst Customer: CINGSA 50 Bc: 4:27:25 Supervisor: Cahill 70 Bo: 4:49:30 Test Started: 10/8/2011 7:34:14 PM Density: 12.01bm /gal 100 Sc: 5:18:25 Test Stopped: 10/9/2011 12:52:40 AM System: D929 +.2 %D46 +3 %020 +2 %D79 +.2gpsD110 BHCT: 90 degF Printed: 10/9/2011 9:34:20 AM BHST: 105 degF Job Type: 9 5/8" Intermediate lead Rig Name: Nabors 105 Page 1 Instrument: Twin Right Current Compressive Strength: 450 psi S ch 1 u m berge r Sampling Period: 30 seconds Final Compressive Strength: N/A at Prudhoe Bay Well Services Laboratory Compressive strength type A (less than 14 lb/gal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 18 120 500 16- 101 .. 450 - "'.r • 400 - • _ ---------------______. . ____. ______ 350 / 0 S 127 80 ,.n''`� r 10- `}' _ 2 300 - „ s2 - E i' � rn d - e 6. ar 250- ' f E - a' > - r I P. 8- E Ti s � - IT Z i 200 - E� I • 6 40 U / ❑ 150- r p 4 - o V 100- = 21 2 50- 0 0 0 -�� ( 1 I • 0:00 15:00 30:00 45:00 Time (HH:MM) Location: CLU Storage 4 50 psi: 4:53:00 File Name: pakl l int4001- UCA4.tst Customer: CINGSA 500 psi: N/A Supervisor: P. Cahill 1000 psi: N/A Test Started: 10/8/2011 8:17:31 PM Density: 12.0 Ibm/gal 2000 psi: N/A Test Stopped: System: D929+ .2 %D046 +3 %D020+2 %D079+.2gpsD110 BHCT: 90 degF 12 hr: 207 psi Printed: 10/10/2011 1:18:02 PM BHST: 105 degF 24 hr: 373 psi Job Type: 9 5/8" Intermediate Lead Page 1 Rig Name: Nabors 105 I I 1 • • $chlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 4 Intermediate Stage 1 Tail Field Blend EXTERNAL Signatures Fluid No : PAK 11int3053 Client : CINGSA Location / Rig : Nabors 105 C Date : Oct -08 -2011 Well Name : CLU Storage 4 Field : Cannery Loop Daniel Himel Job Type 9 5/8" Intermediate Depth 8750.0 ft TVD 5000.0 ft Stage 1 BHST 105 degF BHCT 90 degF BHP 2392 psi Starting Temp. 90 degF Time to Temp. 01:45 hymn Heating Rate 0.00 degF /min Starting Pressure 500 psi Time to Pressure 01:45 hr:mn Schedule ( ) Composition Slurry Density 14.00 lb/gal Yield 1.29 ft34sk Mix Fluid 4.099 gaUsk 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 (b/ft3 Fresh water 4.089 gaUsk Base Fluid 0046 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 gaUsk Retarder Feb -10 -2011 Rheology Tem. nature 80de!F 90de!F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 148.0 148.0 148.0 181.0 181.0 181.0 200 108.0 105.0 106.5 124.0 126.0 125.0 100 69.0 62.0 65.5 76.0 73.0 74.5 60 52.0 44.0 48.0 58.0 51.0 54.5 30 39.0 30.0 34.5 42.0 34.0 38.0 6 20.9 15.9 18.4 18.8 16.6 17.7 3 16.3 14.1 15.2 13.5 11.9 12.7 10 sec Gel 14 deg -16.75 Ibf /100ft2 12 deg -14.49 lbf /100ft2 10 min Gel 28 deg - 33.49 Ibf /100ft2 22 deg - 25.53 Ibf /100ft2 Rheo. computed Viscosity : 280.469 cP Yield Point : 23.41 Ibf /100ft2 Viscosity : 351.198 cP Yield Point : 22.86 Ibf /100ft2 Thickenin t Time Free Fluid Consistency Time Trace mL/250mL in 2 hrs Remark : Thickening time includes batch time At 80 degF and 45 deg incl 30 Bc 00:00 hr:mn Sedimentation : None 70 Bc 05:26 hr:mn 100 Bc 05:59 hr:mn Fluid Loss Batch Mix Time : 01:00 at 90 degF API Fluid Loss 8 mL hymn 4 mL in 30 min at 90 degF and 1000 psi UCA Compressive Stren th Water Analysis Chloride Calcium Magnesium 07:52 hr:mn 50 psi <500.00 mg/I 0.00 mg/I 40.00 mg/I 12:59 hr:mn 500 psi 12:00 hr:mn 434 psi 24:00 hr:mn 927 psi Page 1 Instrument: 8240 #3 S ch l u m be rg er Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 250— 12000 100 10800 200 _ 9680 o • 175— 8400 150- 7290 m 125 6000 c . a> - E 100 a 4800 .� �.r.r. 75— 3600 . o - _ IF 50— 2400 _ ___ ___ -- - - - -__ w. - 25- 1200 0 0 0 .,, . i , r i , ,, � i t • . i . , i , 1 1 i • 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 Time (HH:MM) Location: CLU Storage 4 30 Bc: 0:00:15 File Name: pak11 int3053- 1- cell3.tst Customer: CINGSA 50Bc: 4:55:10 Supervisor: Cahill 70 Bc: 5:26:05 Test Started: 10/7/2011 2:56:27 PM Density: 14.0Ibm /gal 100 Bc: 6:00:00 Test Stopped: 10/7/2011 8:56:28 PM System: Flexstone +.2 %D46 +.5 %D202 +.5 %0400 +.01gpsD177 BHCT: 90 degF Printed: 10/8/2011 9:34:15 PM BHST: 105 degF � Job Type: 9 5/8" Intermediate Stg 1 Rig Name: Nabors 105 Page 1 Instrument: PAK Current Compressive Strength: 928 psi Schlumberger Sampling Period: 30 seconds Final Compressive Strength: N/A at Prudhoe Bay Well Services Laboratory Compressive strength type B (more than 141b /gal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 120 16 1000 900 1 • *......-. -. - - - -- �....- -.-» +'..IW".... ..,..».n�.� -_--- �... ._ �.,e._....,..- ....._ +r,� 101 800 1 ' • 700 8 r c a .___.___,_ CI- 0 1 600 c N U e 5 E 7 60 �, 8 � 500 E F- N E 400 6 _ E i 4 7 0 F- - 0 300 4 f V - 200 if 2 _ 100 0:00 5:00 10:00 15:00 20:00 25:00 30:00 • Time (HH:MM) Location: CLU Storage 4 50 psi: 7:52:30 Fite Name: pakllint3053- SGSA.tst Customer: CINGSA 500 psi: 12:59:30 Supervisor: P. Cahill 1000 psi: N/A Test Started: 10/7/2011 9:12:04 PM Density: 14.0 Ibm/gal 2000 psi: N/A Test Stopped: System: Flexstone +.2 %D46 +.5 %D202+ BHCT: 90 degF 12 hr: 434 psi Printed: 10/8/2011 9:21:46 PM BHST: 105 degF 24 hr: 927 psi Job Type: 9 5/8" Intermediate Stage 1 Page 1 Rig Name: Nabors 105 Static Gel Stregnth (100Ibf/100ft2): 6:50:00 Static Gel Strength (500Ibf /10012): 7:11:00 • • Schlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 4 Production Liner Field Blend EXTERNAL Signatures Fluid No : PAK 11int3053 Client : CINGSA Location / Rig : Nabors 105 Date : Oct -08 -2011 Well Name : CLU Storage 4 Field : Cannery Loop Daniel Himel Job Type 7" Production Liner Depth 10,500.0 ft TVD 5200.0 ft I BHST 105 degF BHCT 90 degF BHP 2392 psi Starting Temp. 90 degF Time to Temp. 01:45 hr:mn Heating Rate 0.00 degF /min Starting Pressure 500 psi Time to Pressure 01:45 hr:mn Schedule ( ) Composition Slurry Density 14.00 Ib/gaI Yield 1.29 ft3/sk Mix Fluid 4.099 gal /sk Solid Vol. Fraction 57.8 % 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 0046 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 gausk Retarder Feb -10 -2011 Rheology Tem . , rature 80 de., F 90 . :. F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 148.0 148.0 148.0 181.0 181.0 181.0 200 108.0 105.0 106.5 124.0 126.0 125.0 100 69.0 62.0 65.5 76.0 73.0 74.5 60 52.0 44.0 48.0 58.0 51.0 54.5 30 39.0 30.0 34.5 42.0 34.0 38.0 6 20.9 15.9 18.4 18.8 16.6 17.7 3 16.3 14.1 15.2 13.5 11.9 12.7 10 sec Gel 14 deg -16.75 Ibf /100ft2 12 deg -14.49 Ibf /100ft2 10 min Gel 28 deg - 33.49 Ibf /100ft2 22 deg - 25.53 Ibf /100ft2 Rheo. computed Viscosity : 280.469 cP Yield Point: 23.41 Ibf /100ft2 Viscosity: 351.198 cP Yield Point: 22.86 lbf/100ft2 Thickenin t Time Free Fluid Consistency Time Trace mLJ250mL in 2 hrs Remark : Thickening time includes batch time At 80 degF and 45 deg incl 30 Bc 00:00 hr:mn Sedimentation : None 70 Bc 05:26 hr:mn 100 Bc 05:59 hr:mn Fluid Loss Batch Mix Time : 01:00 at 90 degF API Fluid Loss 8 mL hr:mn 4 mL in 30 min at 90 degF and 1000 psi UCA Com • ressive Stren t th Water Analysis Time CS Chloride Calcium Magnesium 07:52 hr:mn 50 psi <500.00 mg/I 0.00 mg /I 40.00 mg /I 12:59 hr:mn 500 psi 12:00 hr:mn 434 psi 24:00 hr:mn 927 psi Page 1 Instrument: 8240 #3 Sch l u m be rg e r Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 250- 12000 100— 225- 10880 '- t/ 200- 9680 1-: ,f • 175— 8400 150- 7200., IL - ca 125 . 6000 ` 100- • ' 4880 ° 75 3680 • 50- 2480 ,. -_ . —. - -•- -- - - -- - -- -0 25- 1290 r ._ . - - l 0 0 0.,, I,.,, 1 1 1 1 1 1, 1 I 1 1 I,,, 1111 l I. till • 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 Time (HH:MM) Location: CLU Storage 4 30 Bc: 0:00:15 File Name: pak11 int3053- 1- cell3.tst Customer: CINGSA 50Bc: 4:55:10 Supervisor: Cahill 70 Bc: 5:26:05 Test Started: 10/7/2011 2:56:27 PM Density: 14.0 Ibm /gal 100 Bc: 6:00:00 Test Stopped: 10/7/2011 8:56:28 PM System: Flexstone +.2 %D46 +.5 %0202 +.5 %0400 +.01gpsD177 BHCT: 90 degF Printed: 10/8/2011 9:34:15 PM BHST: 105 degF Job Type: 9 5/8" Intermediate Stg 1 Rig Name: Nabors 105 Page 1 1 Instrument: PAK SGSA Current Compressive Strength: 928 psi Schlumberger Sampling Period: 30 seconds Final Compressive Strength: N/A at Prudhoe Bay Well Services Laboratory Compressive strength type B (more than 141b /gal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 12 16 1000 1 900 10 ' 800 • 1 I 700 8 r:-_- --- -- __ _ aa, 1 I L y o o, 600 c 2 U N 7 E al 500 60 ' a , 8 w E / , E E - H w F - :N a 400 6 40 F= c.) � - 300 / o _ 4 ! V 0 200 / 1 20 2 - 100 0 0 0 1 1 1 1 1 1 0:00 5:00 10:00 15:00 20:00 25:00 30:00 • Time (HH:MM) Location: CLU Storage 4 50 psi: 7:52:30 File Name: pakllint3053- SGSA.tst Customer: CINGSA 500 psi: 12:59:30 Supervisor: P. Cahill 1000 psi: N/A Test Started: 10/7/2011 9:12:04 PM Density: 14.0 Ibm/gal 2000 psi: N/A Test Stopped: System: Flexstone +.2 %D46 +.5 %D202+ BHCT: 90 degF 12 hr: 434 psi Printed: 10/8/2011 9:21:46 PM BHST: 105 degF 24 hr: 927 psi Job Type: 9 5/8" Intermediate Stage 1 Page 1 Rig Name: Nabors 105 Static Gel Stregnth (100Ibt /100ft2): 6:50:00 Static Gel Strength (500Ibf/100ft2): 7:11:00 1 • • Mi SINAC CINGSA T � Cook Inlet Natural; Gas Well: Cannery Loop #4 j O ��a '3 A Schlumberger Company __ Kenai, Alaska INTEGRATED FLUIDS ENGINEERING RECAP a li , e � eva „AA- sigh ti Prepared For: Cook Inlet Natural Gas Storage Alaska Cannery Loop #4 Kenai, Alaska Prepared by: Pete Nelson Reviewed by: Ray Figueroa Presented to: Conrad Perry Date: November 22, 2011 • • Cook Inlet Natural Gas Mi Wel �SCaA l: nner Loop #4 S 1 '�f " ORA E s A Schlumberger Company . s Kenai, Alaska Table of Contents 1. EXECUTIVE SUMMARY 2. BENCHMARKS & TARGETS 3. SUMMARY OF FLUID RELATED COST 4. WELL SUMMARY 5. INTERVAL DISCUSSION 6. PRODUCT SUMMARY 7. DRILLING FLUIDS SUMMARY 8. HYDRAULICS SUMMARY 9. DAILY DISCUSSION 10. FLUID VOLUME SUMMARY 11. HIGHLIGHTS / RECOMMENDATIONS 12. APPENDIX 1— PRODUCT CONCENTRATIONS ease • • M' :SAC Cook Inlet NaturQl;has CINGSA Well: Cannery Loop #4 STORAQ l' . 1414 A Schfumberger Company Kenai, Alaska EXECUTIVE SUMMARY No incidents or spills attributable to MISWACO personnel occurred tz ,„ during the drilling and completing of this well. Safety Meetings attended - 28 meetings R° """ £ Man -hours worked - 672 hours The drilling phase was shorter than expected due to high ROP, C IFE operational efficiency, and no major problems. MI Minor formation losses occurred in the upper intervals of this well. Losses became significant in the injection interval. IFE LoTorq and Lube 776 were successfully used in combination as lubricants on this well with very good performance for reducing torque and drag and minimizing bit stick / slip. IFIE Cook Inlet Natural, Gas Mi SWACO CINGSA STORAQ Well: Cannery Loop #4 as A Schlumberger Company Kenai, Alaska Project Summary IFE Project Services Cost Summary MISW . Well Name: Cannery Loop #4 Casing Program Conductor Bit Interval 118 "" Planned Actual Actual Actual Size Depth Days Days DF $ CF $ 16 2,467' 7 5 12.25 8,608' 11 11 8.5" 10,500' 9 10 + 2 28 1 Comments: DF = Drilling Fluids with engineering CF = Completion Fluids with field engineering services IFE III III Cook Inlet Natural. :Gas M ,... CINGSA STORA Well: Cannery Loop #4 s°` '1/4 A Schlumberger Company °' u Kenai, Alaska Well Summary Mi BWACQ 4 ..„00.1t,40.-- A Schlumberger Company RECAP - WELL SUMMARY Operator : CINGSA Well Name : CLU Storage #4 Well Location : Kenai, Alaska Spud Date : 9/27/2011 Contractor : Nabors Drilling Toatl Depth (TD / TVD) : 10500 ft / 5112 ft TD Date : 10/23/2011 Project Engineer : Jim Dwyer Max Temp / Max Angle: 150 °F / 86° inclin. Field / Area : Cannery Loop/Kenai Fluids Engineer : Brown/Faulkner Max Mud Weight : 9.4 lb /gal Description : SEC. 9/T5N/R11W,SM Fluids Engineer : Rooney /Smith Screens, Equip. & Haul-off Cost ($) : Warehouse : Nikiskl, Alaska Total Days to TD : 26 Product & Engineering Cost ($) : 360,684.12 M -I Well No.: 131627 Air Gap / Water Depth : 01 0 ft Project Total Cost ($) : 360,684.12 End of Well Comments : Int. Inteval Dates Csg Depth Depth Hole Max. Mud Max Max Total Int. Casing TD /TVD Drilled Size Weight Angle Temp. Frac. Principal Int Cost No. , Days Size /Type Gradient Fluid Type Begin End (ft) (ft) (in) (16/gal) (degrees) (°F) ($) 1 27- Sep -11 1-Oct-11 5 13.375 in 2467 / 2097 2,483 16 9.4 61.50 80 FLOPRO Casing 2 2- Oct -11 11- Oct -11 11 9.625 in 8608 / 4920 6,136 12 1/4 9.1 81.00 104 FLOPRO NT �T y Casing 7 in 3 12- Oct -11 21- Oct -11 I0 Liner 10500/5112 1,881 81/2 9.4 86.00 150 15.0 FLOPRONT 7 in 4 22- Oct -11 23 -Oct -11 2 Completion 10500 / 5112 81/2 8.6 86.00 140 Sodium Chloride Fluids • • Cook Inlet Natural :Gas MI SWACO C ZnneryLoop#4 GSA STORA as a A Schiumberger Company Kenai, Alaska SUMMARY OF FLUID RELATED COSTS 11N � NACCI` WELL COSTS SUMMARY SetM4+ #e Comm, Operator : CINGSA Contractor: Nabors Dniting Desaytion1 SEC. 9l6SN/RI1WSM TD /TVD: 10521 ft 5112 ft Well Name : CLU Stara ge to Field /Area: Cannery loop /Kenai Location : Kenai, Ala sire Max Wet Temp: 150 °F Start Date: 27Srp -11 End Date: 23 -Oct -11 Total Days to TO 26 AtaxWoI Angle : 86° Interval # 1 Interval # 2 Interval # 3 Interval # 4 Interval *5 Interval # 6 Interval # 7 Interval # 8 Interval # 9 Interval # 10 Fluid Type FLOPRO FLDPRO NT FLOFRO NT Sodium Chloride /11/W STarTingDepth (MU) fF - � — � — 2,467 - - - �b08 1O,a�00 -- - - � - -- Final Depth (MD) ft 2,467 8,608 10,500 10,500 _ -- -- �- . lTepth united —. 2.4 3 — _ 6.13� _ — _ 1,883 was — m 16 12 9 9 _ _ _ _ — _ Casing 13 10 7 - - -- --- _— _-- --- - iiiiTIF Casing Type Casing Casing Liner eTatton J Fluids _ __ S'1ar'k� 35 Ti dF -&K =1i i2ZeT fix= ace T - -- --- ---- - - -- -- .- Mir - D ay — o1 -areal 1T -fie =1i Tf 5cii z3�xai1` Total d • 5 11 10 Fluid Service Cost / ft drilled Fluid Service Cost / bbl of fluid Fluid Service Cost / Day Engineering Cost $ Chemicals Cost w/o Engineering $ Interval Fluid Service Cost Total Project Cost Summary ($) Drilling Fluid Engineers Chemicals Solid Control Equipment Engineers Equipment Screens Waste Management Engineers Equipment Chemicals Haul Off Completion Fluid Engineers Equipment Others Products Filtration IFE Engineering Services Total Cost / ft drilled Total Cost / bbl of fluid Total Cost! Day Total Interval Cost $ irD 111211E • • Cook Inlef Natural Gas Mi swA C1rlGSA STORAQE Well: Cannery Loop #4 as .a A Schiumberger Company Kenai, Alaska IFE Drilling Interval Summary Surface Interval 0 — 2,483' MD, 2,209' TVD 16" Open Hole /13 -3/8" Casing 9.2 — 9.4 PPG Used Flo- Pro/PHG Spud Mud The surface interval was spudded at 3:30 PM on September 28, 2011 with used Flo -Pro from CLU Storage #3. The MI Mud Engineers arrived on September 26th to order and prepare for the spud. A 16" bit (HCC VM1) and motor were picked up and ran in the hole. The conductor had been previously cleaned out to 118'. The hole was drilled to 255' to allow picking up the remainder of the BHA. Drilling ahead began with penetration rates of 100 - 150 FPH while control drilling. Shakers had 165 mesh screens and pump rates were regulated to prevent excessive mud losses over the shakers. Ran water at 20 - 25 BPH to maintain volume and twenty - barrel pre- hydrated gel (PHG) sweeps were pumped as requested to sweep the hole. The viscosity was increased to 65 -80 funnel viscosity to maximize hole cleaning at 700' MD. The shakers were screened down to 200 mesh screens on shaker #2 at 1,500' and screened down with #1 shaker at 2,100'. Due to mud losses, we had to go back to 165 mesh screens on shaker #1 at 2,350'. Circulate the hole clean with a high viscosity sweep and two bottoms up before making a wiper trip to the HWDP. The hole appeared to be in good shape. Ran back to bottom and circulated another high vis sweep, carbide lag, and 2 bottoms -up volumes. The rig's Derrick centrifuge was run continually from 400' until casing depth. Sand content never went above 1 %, but it was in the 0.5 - 1% range for most of the surface hole. The final mud weight was 9.3 PPG. The funnel viscosity was 50 sec /qt with a YP of 17. Poly -Pac UL was added at 0.5 PPB beginning at —2,100' to lower fluid loss to 8.4 cc. After rigging up, the 13 -3/8" casing was run to 2,468' having to work through several tight spots. The last 3 joints went right to down without any problem. An inner string was run using the 5" drill pipe that stung into the "E2 Cementer" above the float collar. A full casing volume was circulated without losses. The cement job went well, and 12.0 PPG cement made it to surface. There were no losses while cementing. The cement job began with 40 bbls of 10.3 PPG mud push followed by 170 bbls of 12.0 PPG cement and 70 bbls of 15.6 PPG tail cement. The cement was displaced from the inner string with 5 bbls of water and 36 bbls of mud. • • Cook Inlet Notural :Gas Mi Swac C GSA STO RA Q -_ � Well: Cannery Loop #4 QE II' \ A Schlumberger Company Kenai, Alaska MI SW/4c ,,,,-- DRILLING FLUIDS & VOLUME SUMMARY n sGhiamea, Company INTERVAL 1 Operator : CINGSA Description : SEC. 9/T5N/R11 W ,SM Start Depth / T VD : 0 ft / 0 ft Well Name : CLU Storage #4 Location : Kena Alaska End Depth 1 TVD : 2467 ft / 2097 ft Contractor : Nabors Drilling Field / Area : Cannery Loop/Ke nai Total Depth Drilled (ft) : 2,483 Start Date : 27 -Se p-11 Mud Type : FLOPRO Maximum Interval Angle (°) : 613 End Date : 1- Oct -l1 Hole Size (in) : 16 Maximum Interval Temperature ( °F) : 80 Interval Days : 5 Casing Size (in) : 13 3/8 Fracture Gradient (lb/gall : Water Depth (ft) : Top of Liner (ft) : Maximum Interval Mud Weight (lb /gal) : 9.4 PRODUCT & MUD ENGINEERING USAGE ON THIS INTERVAL Product Concentration Total Rig Time Distribution Product Name Unit Cost ($) Total Cost ($) % Total Cost Ob/bbl) Units Min I Max I Average Name I Days CF DESCO II DEFOAM X 11 % 0250 0250 0.250 Rig Up/Ser vice 1.17 ENGINEERING SERVICE n 3 0.107 0.091 I Drilling 1.17 �J t FLOW ZAN 11 Tripping .. -- 1.1 M-I GEL EXPORT —p — __ 15 — - 0.096 0.284 0229 - Non -Pr oductive Time - -.— M -I WATE (BARITE) — 124 -- - - 4.007 6.743 - 4.784 B01 NU 0.23 MYACIDE GA25 77 - -- 3.509 3.577 3.543 BOP Testing 0.13 POLYPAC SUPREME UL 3 _...- - - �- Cementing _-- ---- PORTABLE ARTIC MUD LAB RENTAL _ 6 0217 0.233 0.224 Condition Hole — 0.06 PRE -JOB SAFETY MEETING 6 Condition Mu 027 -- -- -- SCREENKLEEV 10 Coring SODIUM BICARBONATE 170 1.128 1.211 1.163 Dir Survey -- 11 0500 0.500 0.500 Direction Work -- -- - _ -- - °-- — — -- Fis( — -- - - - -- -- — - -_- - -- Lost Circ. — Reaming — Rig Repair Running Casing 0.88 Product & Mud Eng. Total Cost ($) Total Days 5.01 Volume Description Volume (bbl) Losses Detail (bbl) 1. Volume on board @ start I Dumped 657 2. Received Shaker s 323 3. Back Loaded / Transfer red 'Left Behind Csg 4. Remaining 446 Centrifuge 5. Volume Built 1,459 Formation 6. Surface Volume Lost 980 Left in Hole 7. Subsurface Volume Lost De -Sifter Interval Comments : Haul off Fluid Processed Total Mud Losses (bbl) 980 TOTAL INTERVAL COST ($) 23,033.01 0 rE • • Cook Inlet Natural, Mt SWAP CINGSA STORAQ Well: Cannery Loop #4 a ai A Schlumberger Company Kenai, Alaska IFE Drilling Interval Summary Intermediate Interval 2,483' MD (2,209' TVD) — 8,619' MD (4,925') TVD 12 -1/4" Open Hole/ 9 -5/8" Casing 8.7 - 9.2 ppg FLO -PRO Drilling Fluid The intermediate interval took 11 days and actual drilling was completed in 5 days. After the surface job was completed, mud was hauled off. Pits were cleaned and new Flo -Pro fluid was built. A steam hose dropped into pit 4 warmed the mud to 72 degrees. BHA #2 was picked up and run in and the cement and shoe were drilled out. Twenty feet of new hole was drilled. The spud mud was displaced out of the hole with new Flo -Pro. The mud had to shear to be able to go through the shaker screens at rates fast enough to drill. The FIT was performed to 15.4 ppg EMW. Drilling ahead commenced. Pit 6 was cleaned and isolated and used to make 100 barrel batches of additional new fluid to bring pit volume to 450 barrels. The shakers were screened to 165 mesh screens. Drilling rates of 200 -250' per hour were averaged. Due to the amount of sand drilled, these screens could only handle 450 gpm flow rate, the minimum amount the direction tools needed to operate. Pump rates were increased to 500 -550 gpm at 3200' MD and the screens were able to handle the load. As the formation changed to more clay, the screens were again changed to 200/200/200/165 with no further blinding. Sand content decreased to .5 %. Klagard was added at 6 ppb and Lotorq was added to 2.0% by 4000'. A short trip to the shoe was made. While the trip out had no issues, the rig had to pump through the entire hole interval from 2,800' to 3,700' going to bottom. Resinex was added at .5 ppb after the short trip. While drilling ahead at 200 fph and pumping at 580 gpm at 6000', the shakers could handle drilling any faster without flowing over. Drilling continued to 6,259' where a short trip back to 4,918' was made. Back - reaming was required. The trip back in the hole was problem free with no fill on bottom. While drilling ahead, after the short trip, the lubricant concentration was increased to 4% at the request of the company representative and directional driller. Both LoTorq and Lube 776 were used. The torque was reduced from 19 -20K to 15 -16K ft -lbs. At 7,215', the rate of penetration dropped off to 10 to 20 feet per hour. It was thought that bit- balling was taking place and several Pecan Nut Plug sweeps were pumped. The weight on bit was increased to as high as 40K. After about 20' of slow drilling, the rate picked back up to 150 to 200 feet per hour. The geologist and mud loggers observed that the slow drilling took place in a claystone and the abrupt change to the higher penetrations rates was because the bit entered sand. At 7,694', another wiper trip back to 6,153' was performed. A 40 barrel high viscosity sweep was pumped around. While pumping the sweep, one of the mud pumps broke down making the sweep ineffective. An attempt was made to pull out of the hole on elevators, but the over pull was too much. It was necessary to back -ream out. The trip back to bottom on elevators saw no problems and there was no fill. When back on bottom, drilling rates of penetration were 100 to 150 feet per hour. At 8,050, LoTorq was added and the torque was reduced from 22 -23K to 19 -20K ft-lbs. The pump rate was increased to 600 — 650 gallons per minute for additional hole cleaning. The e IRE • • Cook Inlet Natural, Gas Mi CINGSA STORAQ1 Well: Cannery Loop #4 as a A Schlumberger Company Kenai, Alaska shakers had no problem with this pump rate with 200 mesh screens. Drill to intermediate interval TD at 8,619'. There was some discussion about pumping a sweep, but there was concern over breaking down the thick coal or the Sterling reservoir that was just drilled. A bottoms up was circulated to clean the hole. Again, an attempt was made to pull out of the hole on elevators. This did not work and it was decided to back -ream all the way out to the shoe. At TD, the mud weight was 9.1 ppg with a 21 yield point and the funnel viscosity was 53. The lubricant concentration was at 4 %. 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 6,100. This was pumped and rotated through to clean it up. When on bottom, a 40 barrel high viscosity sweep was pumped around and a 100% increase in cuttings was noted. This was mostly %2" to 2" coal wafers and slivers, and clay. About 2 bottoms up circulations were pumped and the shakers gradually cleared up. A LoTorq pill was spotted in the lower 2,000' of the open hole increasing the concentration of lubricant to 6 -7% between 6,000 and 8,000'. 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 20. Fluid loss was at 5.4 cc. The trip out was slick and problem free. Preparations were made for running casing. Weatherford was rigged up and the 9 5/8" casing was successfully run and landed at 8,608'. When at the 13 3/8" shoe, the mud was circulated and conditioned with Desco and sodium bicarbonate. After the casing was landed, the mud was again conditioned with Desco and sodium bicarbonate. A full casing volume was circulated (607 barrels) at a rate of 6 barrels per minute. There were -50 barrels of losses while running the casing. There were very little or no losses while circulating. Approximately 560 barrels of mud were transferred to the de- watering unit to make room for the cement job. The 9 5/8" casing two stage cement job was successful and completed without losses. The first stage began with the rig pumping 35 barrels of 10.2 ppg mud push, followed by Schlumberger pumping 300 barrels of 12 ppg lead, followed by 40 barrels of 14 ppg tail cement. The rig then displaced the cement with 641 barrels of Flo -Pro at 8 barrels per minute to bump the plug. The stage collar was then opened. A bottoms up was circulated with the rig pumps and 10 barrels of excess cement was observed at the surface. It was necessary to dump 80 barrels of cement contaminated mud to the cuttings bin before starting to pump the second stage. The 2 11d stage began with 40 barrels of 10.2 ppg mud push, followed by 207 barrels of 12 ppg cement. Forty barrels of cement - contaminated mud was dumped at the surface. The stack was later drained and a sample weighed 11.7 ppg with a 12.3 pH. After the cement job, the Flo -Pro mud was treated with over 100 sacks of citric acid, 20 sodium bicarbonate, and water due to cement contamination. While waiting on cement, the rams were changed and the BOP's were tested. This completed the intermediate interval. IFE i III III Cook Inlet Nafural:Gas mi stivAcci„, CINGSA Well: Cannery Loop #4 STORA A Schlumberger Company 415_0 , ....t , Kenai, Alaska MI SWACO ----- , DRILLING FLUIDS & VOLUME SUMMARY A Sthtuntherger Company INTERVAL 2 Operator : CINGSA Description : SEC. 9/15N/R11W ,SM Start Depth / TVD : 2467 ft / 2097 It Well Name : CLU Storage 04 Location : Kenai, Alaska End Depth / TVD : 8608 ft / 4920 ft Contractor : Nabors Drilling Field/Area : Cannery Loop/Ke nai Total Depth Drilled (ft) : 6,136 Start Date : 2-Oct-11 Mud Type : FLOPRO NT Maximum Interval Angle (°) : 81 End Date : 11-Oct-11 Hole Size (in) : 12 1/4 Mmdmum Interval Temperature ('F); 104 Interval Days : 11 Casing Size (in) : 9 5/8 Fracture Gradient (1b/gal) : Water Depth (ft) : Top of Liner (ft) : MaArnum Interval Mud Weight (Ib/gaD : 9.1 PRODUCT & MUD ENGINEERING USAGE ON THIS INTERVAL Product Concentration Total Rig Time Distribution Product Name Unit Cost ($) Total Cost (S) % Total Cost (lb/bbl) Units Min I Max Average Name I Days ASPHASOL SUPREME 185 0.154 0.695 0.542 Drilling 3.27 CAUSTIC SODA 29 0.058 0.426 0.114 T ripping 223 CF DESCO 11 6 0.685 1211 0.953 Non-Pr oductive Time CONQOR 404 20 - BOP NIJ 0.46 DNGINEERING SERVICE 81 _____________ 0.636 1.161 0.786 BOP Testing 042 FLOW ZAN 14 0.097 0.375 0261 Cementing 0.77 G-SEAL 21 3.401 1 4.531 3.794 Condition Hole 023 KLA-GARD 3300 2.417 1 9.998 8.165 Condition Mud 0.65 LOTORQ 11 1.840 2.145 1 2.010 Coring .. LUBE 776 415 - 3215 -1 9.808 4.991 Dir Survey M-1 WATE (BARITE) 9 0.064 0.159 0.120 - D irection Work 0.02 MYACIDE GA25 20 0.425 0.558 0.458 Fishing PECAN NUT PLUG MEDIUM 68 1.077 1.388 1217 Lost Circ. POLYPAC SUPREME UL 10 •' - Reaming 0.9 PORTABLE ARTIC MUD LAB RENTAL 398 4.499 8.182 6.760 Rig Repair 0.08 POTASSIUM CHLORIDE (KCL) - ------- - 21 Running Casing 0.71 PRE-JOB SAFETY MEETING 101 0231 2.249 1.793 Testing RESINEX 19 - 0.404 0.530 0.435 Wait on Cement SAFE-CARB 250 - 76 - -- 0.711 - 2.519 1.337 Wait on Weather - - SAFE-CARB 40 460 - 0.452 3280 - 17684 Wireline S - CREENKLEEN ---- 0.064 0.205 : 0.156 Kill Well SODA ASH 65 0.056 1.910 I 0293 Monitor Well SODIUM BICARBONATE 24 0.299 1 0.483 1 0.406 P ickup Tubing SODIUM METABISTAFITE 2 G ravel - 1 "-- --- WEEKLY SAFETY MEE - - TING Handle BHA 0.04 ....___ RIFI w/4.5 Completior - - (2 - ii - c - u - Iii - e --- - - __ ---- ________ _____ _______--_______ j _ _____ RD from csg/cmt o 0.04 Product & Mud Eng. Total Cost ($) 100% 1 otal Days 10_01 Volume Description Volu-te (bbl) Loccec DeLlil (bbl) 1. Volume @ start 446 Haul off 1,032 2. Received Shaker s 575 3. Back Loaded / Transfer red Centr ifuge 211 4. Remaining 1,054 Formation 55 5. Volume Built 2,512 Dumped 30 6. Surface Volume Lost 1,848 Left Behind Csg 7. Subsurface Volume Lost 55 Left in Hole Interval Comments : De -Sitter Fluid Processed Total Mud Losses (bbl) 1,903 'ft) 1 AL 1N 1 EKV AL L051 ($) CM • Mi ��WAC CINGSA Cook Inlet Natural: Baas �. Well: Cannery Loop #4 STC)RA Q ( A Schlumberger Company Kenai, Alaska IFE Drilling Interval Summary Injection Interval 8,608' MD (4,920' TVD) — 10,500' MD (5,112' TVD) 8 -1/2" Open Hole / 7" Casing 9.0 - 9.2 ppg FLO -PRO Drilling Fluid The production interval required 10 days to complete with drilling taking 6 days. The 8'A" drilling BHA #4 and NB #3 were run in the hole to drill out cement and drill ahead. All the mud in the casing down to and 300' below the DV plug was contaminated with cement. This mud was circulated to the cuttings box for disposal. Pipe was run in to 7100' and circulated bottoms up to check for cement contamination, but there was none. The BHA was run down to 8,526' to tag the float collar plug, drill out, and make 20' of new hole. A FIT was performed to 15.5 ppg EMW. Drilling resumed down to 9478', pumping 400 gpm and rotating 100 rpm. There, a planned short trip pulling to the shoe on elevators resulted with pulling into tight hole at 9160'. When circulation was initiated, total returns were lost. A 35 bbl LCM pill with 17 ppb each of Safe Carb 20, Safe Carb 40, and Safe Carb 250 was spotted. An attempt to pull to the shoe was made without success, working pipe and pumping away mud at 2 bpm, then slowing rate to 1 bpm while working pipe. A total of 1200 bbls of mud was lost to the formation by noon the next day. The MI SWACO Well Commander tool was opened and full returns were established. An 85 bbl LCM pill was spotted from the tool at 8,828' into the casing shoe at 8,608'. The bit was rotated and circulated into the casing shoe. The Commander tool was cycled shut and the assembly was run to bottom and drilling resumed. Drilling continued to 9768' and again returns were lost while wiping the hole, pumping 526 gpm and rotating 100 rpm. A 35 bbl LCM pill was pumped containing 15 ppb each SC 20, SC 40, and SC 250; 2.5 ppb G Seal and 3 ppb Mix II Med. The bit was pulled out on elevators to 9,515' where tight hole stopped further progress. Again, the Commander tool was opened and a 70 bbl LCM pill with 30 ppb each SC 20, SC 40 and SC 250; 5 ppb G Seal and 6 ppb Mix II med was spotted. The BHA was run in to bottom after closing the Commander tool and resumed drilling at 350 gpm and 74 RPM, reducing our ROP to under 100 fph. Drilling continued to 10,242', building volume as needed. The bit was pumped out to 9,768' without problem. It was again run to bottom on elevators and drilling progressed to TD at 10,500'/5,112' TVD. The hole continued to take fluid, but volume was maintained with water and adding chemicals to the active. On connections, 30 to 40 bbls of gain was noted and continued through drilling to bottom from 9768' and the trips to the casing shoe pumping out of the hole. After back - reaming the hole to the shoe twice, the drilling assembly was pulled out and laid down. A CBL was then run with Baker Atlas. Then the casing running equipment was rigged up and the 7" liner was run to bottom having to pump down each joint as the liner shoe left the 9 -5/8" casing shoe. The liner went to bottom without problem other than sustainable losses and the hole giving back fluid during connections. The liner was cemented and displaced with new solids -free perforating KCl brine in the liner (82 BBLs). Pipe was pulled out of the hole, laying down excess drill pipe including the heavy weight. IFIE • • Cook Inlet Natural. Gas Mi 5►AC Well: STQRAQ Well: Cannery Loop #4 as a A Schlumberger Company Kenai, Alaska Run in with the polish mill and clean out the polish bore receptacle. The drill pipe was pulled out, laying it down. Rig up and run the 7" tubing with seal bore assembly space out, displace the hole to clean 8.55 KC1 brine. ERE • • !��� Cook Inlet Natural :Gas Mi SWAG CINGSA STO R A A Schlumberger Company _ , � � Well: Cann Loop #4 v 1 �✓ R , QaTIT s � *4 °' Kenai, Alaska Mi SWAG L -- DRILLING FLUIDS & VOLUME SUMMARY A sdth hareer n INTERVAL 3 Operator : CINGSA Description : SEC. 9/T5N/R11W ,SM Start Depth / TVD : 8608 ft / 4920 ft Well Name : CLU Storage /4 Location : Kenai, Alaska End Depth / TVD : 10500 ft / 5112 ft Contractor : Nabors Drilling Field /Area : Canne ry Loop/Ke nai Total Depth Drilled (ft) : 1,881 Start Date : 12-Oct-11 Mud Type : FLOPRO NT Maximum Interval Angle ( °) : 86 End Date : 21- Oct -11 Hok Size (in) : 8 1/2 Maximum Interval Temperature (°F) : 150 Interval Days : 10 Liner Size (in) : 7 Fracture Gradient (IbIgal) : 15 Water Depth (ft) : Top of Liner (f0 : 8,425 Maximum Interval Mud Weight (Ib/gal) : 9.4 PRODUCT & MUD ENGINEERING USAGE ON THIS INTERVAL Product Concentration Total Rig Time Distribution Product Name Unit Cost (S) Units Total Cost (S) % Total Cost (lb/bbl) Min 1 Max 1 Average Name I Days ASPHASOL SUPREME 68 1567 3221 2.601 Rig Up/Ser vice 0.52 CAUSTIC SODA -- - - - -'- - 24 - T---- - - - - -- 0.260 ' 0.967 -- 0.5655 Drilling - 1.65 CITRIC ACID 88 0.752 2.810 1531 Tripping 2.97 DEFOAM X 9 - 0.002 0.290 - 0.100 Non - Productive Time ENGINEERING SERVICE 20 1 EE BOP NU 0.1 FLOW ZAN 101 0.307 1553 0.904 gOP Testing 0.63 - - - - G -SEAL 60 -- - 0.230 1.631 0.893 Cementing LOTORQ 330 2.079 8.381 4564 Condition Hole 1.41 LUKE 776 .- � - - -- 0.982 - 2.073 1.637 Condition Mud 0.17 1\44 i A 3 1287 8.480 3.959 Zoring - MIX 0 MEDIUM 45 0.207 0.407 0.340 Dir Survey MYACIDE GA25 8 -� -- 0.034 0.282 . 0.130 Direction Work 0.04 - POLYPAC SUPREME UL 98 _ _ - 0.981 ' 2.419 - 1.702 Waling PORTABLE ARTIC MUD LAB RENTAL 10 ost rc. -- • si " 3. T - v WI is • P - - 615 --' % _ - 5.3 - 0 -- 13.135 ` 9.693 Reaming 1.3S PRE-JOB SF' -- ------ 2b --.._ -- - Rig Repair -- RESINEX 25 - -� . 0.623 - 1.874 1.1 72 punning Casing 0. 1 - §APE - CA li 21 `" _ - - ._ - . _ _ -- - _ _ -- - 140 - - -- _ - _.._ "3.0 0.553 20 2.1 fiesting -� 227 0.349 .. Wait on Cement 'SAFE -CARE 40 - 247 -- - - -T- - 1.058 - -- 5.141 l - 3377 Waiton Weither -' SODIUM BICARBONATE 11 - 0.308 1.739 1 0.914 Wirelin !Logs 0.38 J I Slip & Cut 0.08 Product & Mud En& Total Cost ($) 100% Total Days 10.01 Volume Description Volume (bbl) Losses Detail (bbl) 1. Volume 0 star t 1,054 Formation 1,890 2. Received Haul off 119 3. Back Loaded / Transfer red 153 Shaker s 4. Remaining 1,768 - Left Behind Csg 5. Volume Built 1,517 Centrifuge 6. Surface Volume Lost 119 Left in FTole 7. Subsurface Volume Lost 1,890 be -Silter interval Comments : Dumped Fluid Processed . Total Mud Losses (bbl) 2,009 TOTAL INTERVAL COST ($) 0 IFE • Cook Inlet Natural Gas Mi WGSA STORAQE �-- Well: Cannery Loop #4 as a s F A Schlumberger Company Alaska IFE Drilling Interval Summary Completion 7" Tubing Completion of the well required 2 days. After the liner cement job, all pits, lines, and pumps were cleaned. The 7" tubing was ran in and the rig reverse circulated clean packer fluid with 3% KCL, 1% Conqor 303A, and 5 ppb sodium metabisulfite into annulus. The tubing was landed and tested. The tree was nippled up and the well was secured. Rig down and move out to CLU #2. CURE • • Cook Inlet Natural Gos Mi SiiVACO, CINGSA STORAC Well: Cannery Loop #4 (!s $ Nta A Schlumberger Company _ - Kenai, Alaska Mi ----,- -- ------- DRILLING FLUIDS & VOLUME SUMMARY ASchi81tio Caftan*/ INTERVAL 4 Operator : CINGSA Description : SEC. 9 /I5N/R11W ,SM Start Depth / TVD : 10500 ft / 5112 ft Well Name : CLU Storage 84 Location : Kenai, Alaska End Depth / TVD : 10500 ft / 5112 ft Contractor : Nabors Drilling Field / Area : Cannery Loop/Ke nai Total Depth Drilled (ft) : Start Date : 22-Oct-11 Mud Type : Sodium Chloride Maximum Interval Angle (°) : 86 End Date : 23- Oct -11 Hole Size (in) : 81/2 Manimum Interval Temperature (°F) : 140 Interval Days : 2 Compl Equip. Size (in) : 7 Fracture Gradient (b/gal) : Water Depth (ft) : Top of Liner (ft) : 8,425 Maximum Interval Mud Weight (b/gall : 8.55 PRODUCT & MUD ENGINEERING USAGE ON THIS INTERVAL Product Concentration Total Rig Time Distribution Product Name Unit Cost ($) Total Cost ($) % Total Cost Oblbbl) Units Min I Max I Average Name I Days CONQOR A303 2 1397 1397 1397 Rig Up/Ser vice DEFOAM X 23 0.158 0.159 0.158 Drilling _ ENGINEERING SERVICE 4 __— —_ Tripping 1 M -I WATE (BARITE) 40 — — — 2.882 2.904 2.893 Non - Productive Time MYACIDE GA25 4 0.171 0.423 0.297 BOP NU PORTABLE ARTIC MUD LAB RENTAL 2 BOP Testing POTASSIUM CHLORIDE (KCL) 93 15.204 16.611 15.907 Cementing 1 PRE -JOB SAFETY MEETING 4 Condition Hole f SODIUM METABISULFTTE 6 0.052 0.508 0280 Condition Mud t Completion 1 1 Product & Mud Eng. Total Cost ($) 12,690.04 100% Total Days 2 Volume Description Volume (bbl) Losses Detail (bbl) 1. Volume 0 start 1,768 Haul off 50 2. Received Shaker s 3. Back Loaded / Transfer red Left Behind Csg 4. Remaining 1,730 Centrifuge 5. Volume Built 12 Formation _ 6. Surface Volume Lost 50 Left in Hole 7. Subsurface Volume Lost De- Sifter interval Comments : Dumped Fluid Processed lotal Mud Losses (bbl) 50 TOTAL INTERVAL COST ($) CIFIE • • M' Cook Inlet Natural; Gas CINGSA Well: Cannery Loop #4 STORAQ A Schlumberger Company - '" Kenai, Alaska IRE • • � �� Cook Inlet Notural,Gas SV A Mi C CINGSA __ .. �r Well: Cannery Loop #4 STO RA QQ1 1. A Schlumberger Company - " Kenai, Alaska DRILLING FLUIDS SUMMARY Mi SINA O A Schlumberger Company Drilling Fluid Summary Operator: CINGSA Field/Area: Cannery LoopKenai Well Name: CLU Storage #4 Description: SEC. 9/T5NJF11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska I,. e " 1 •1 :A 1 • , a - 9 i' t i 7 " s ft 115 ctt r .r: AA . T6D ft' 115 r 635 r 2090 r 2209 r 2090 r 2090 Activity Rigging Up Drlg'6" OH Ong 'f , OH Run Casing Cleaning Pits Pick Up8HA Mud Type Used FloPro Used Flo Pro UsedFloPro UsedFloPro Used FloPro Flo-Pro NT rr t NOTrre - -. - bbl --- _ --._-91811—_ --Tar-- ._.— _._,mr— --as— . __. _ ,__ __ - CircPres3ure - psi - --- -- a0 }po - - - -- Pd5 Ylt - PII - vii - - - PITT - VII Th Taken r 300 r -- Z300 r 2200 'r 2300 r- - - - 2�0 Ftow`1 Tne Te`rrp 7VA • r r 70 N/A r' --- - 'e - m p T • - -- � - -- r -- -- 8z -- - r' - - � - -- r - - - 70 - -- r -. _ . _ gg r - -- - 75 - Funnel Viscosity slat • 49 r 80 r 55 7 50 r 51 • 80 -- -� l3ne01ogy Temp T • ---- 'QO -- r - - �Q -- ►--- - �¢0 - -- r -- - Tar -- - r - ' ---- 120 ---- r - " --- 120 --- R30Q - - - - -- - - - -- r - 32 - r -- - -- r - -- r - �3 - -- r --- �'r - - ° r� 34 - -- 'W— R100 • 17 • 23 r B r 5 r 1'7 r 21 — i _' - ; - - -- r- - -- g --- - ' r'--- - � -- -- i'-- - - - gyp -- -- r- -- _ r---- - g - - -- R3 -- - r - - -3- -- r - -- 7 -- r-- - -- r- - -g - -- r - -_� _- r- - -g - -� YP - - lom0ft= r - -v - -. r ._.__ 2 _..... r -- -'_._ r- -' °e - -- r._-- '-6 - - -- r- --- -23 - -- 10 s Gel Ib1100ft • 4 • 8 r 14 • 14 • 12 r 9 1 - 767100ft • is - r - U r - lb • 26 • r 26 • -- 30 ' ------- ----- ttsr'poft - -- -- r ---- '6 -- -- V- -- 28 r----- 27- - - -- r - -- 32 ---- r - - s - -- ARFt acf30rn r 12 ► p r gg - r H6 --- r 9 - r Sp HTt ' FL Tenp - - F — Cake - — Solids ,, Avol • 5:5 ■ 18.5 r 75 r--- - r 7 - a - g 9 ater %Vol .- i -- _ - - -- r - _ - _9 - - -- r 737b '• 62 — • 114.6 • 95 ____ Sand %vol • 0.1 r 0.9 r 0.5 r 0.4 r 02 r 0 M I '�-- _ -- - --- r -- 'D:3' ---- 'r___"__'q' _'►' -- 9.3 - - ---- r ---- '9.D' --- - s 9 _ --=-- r - as — Ff • 0.3 r 02 • 05 r at r 0.1 r 005 Chlot1de --- ----- - - mgll r -- --20350 -- Hardness. - Ca - - -- -- - - - - -- • -. _50_ -- -- r ---- 200 - -- r - -- - 800 -- r -- 1300 -- r - -- 580 - -- r -- - - 60 - - -- C,ngor 404 - -- - -- -gpm - - -- -- - -- -- -- -- -- •- sow Potassbim mg7t • 000O r 0000 r_ - _ ggp0 - r e500 AfttSCreEn ° size -- 'DO - _ - Remarks - kiggmg up; pack up pipe, HMI tested Wes wdn eater Ud to 255 PU ISHA; do to bib et midnight. Dr1 /srtdmg de directed; build angle to 615 deg; lolled to I IJ gzat32.w. circ nol;e clean. Shtnp to HVVUP Viper tnp to the BHA; Nei t0 bottom: CI3U -ptmtp HI/ sweep; POOH / W S HA. R!U•run 13.3/5" csg; RIRwdsg'Run071ffdca C ri i faM islWee:Dumpasse sscmnettF,iranp ptTe ----------------------------- Test BOPS; kfUto pick up BHA -- - -- - - - - - -- - -- - -- F . • MI AC Cook Inlef Natural; IQs B y� CINGS STORA Well: Cannery Loop #4 Qs .- s \ A Schlumberger Company Kenai, Alaska `_ Mi SWAC A Schlumberger Company Drilling Fluid Summary Operator: CINGSA Field/Area: Cannery LoopKenai Well Name: CLU Storage #4 Description: SEC. 9/T5N /F11W,SM Contractor- Nabors Drilling Location: Kenai, Alaska Date 10/3/2011 10/4/2011 10/5/2011 10/6/2011 10/7/2011 10/8/2011 C ft • 3385 • 4726 -- i ----- 64437 ► - - -- 7694 -- 1 ,----- 6619 -- • - 8619 - TM ft ' 1,532 • 3169 • 39b1:1 • 4bba • 4`JL0 • 41710 AC1S6itJ - -- - --- rig 25""OA ------- . -- 6r1I2ng Afre®a -- __3i57fTrip __ Topping --- fiange•ER WI TYPe - " FIo=Pro 14 - -- FI0 -- Flo -Pi -- - FrO - 4Pro - 14T --- Fb=Pro NT FIo =P7o N F SBe — -'� in 22b0 12250 - 12. 250 22b0 --12250- 4250- Crc V OW -- bbl 966 1174 - 1410 9523 1342 1785 -- - 9 .-- -- - -- i - - --- F1OYI�tI - - - --- aPmm 53 4- °-- --' - -- -313 - � - - --- --- r� ------ g46 ------------- Grc Pressure - _ t2ab ebb' g26 - 3140 Average Kvr 225 •60 150 130 130 Sanple t-r'atTi- ---- -- - Titr@ Tak -7S r - 2200 i - 3230 i - 220 • - 2200 i - 2200 i 12 Flow Line Temp 7 • 70 • 80 • 83 • 96 • 40 • 98 MU - 1b/gal • L75 8:9+ • 9D • DT • 9T r - g9 IVEirtTer *F • 70 • gg • 50 • --153' •- 'z38 r - -- 95 Ftlnnelviscosty - -- s /qt r - - - - 52 -- -- . --- 52 - -- . - -- - - 50 - • ----- • -- -- - - 5 5 4 -- * 50 RtTeabgrgrfT5 `F • 20 +' 26 • 40 • 20 • 120 r 40 (2600 - - - -- - -- -- - -- - - r - - 43 i 41 r 46 r 54 • 49 i - a7 R3uu - • I • - 00 -- • - 35 -- • • - --- - 355 • R200 • 26 • 24 • 29 • 35 • 29 • 28 • R100 - r - - 20 -- • r - 22 - f - 27 - i 22 - i - 23 - -- • -7 Ptl-- -- --__.. c p i - ° $ - ' - - - i - -- - - ff - - - -- i -- -- .8 - --- -- s --- .yr.. -.-° ii - 3c -- - if -- '2 ��_- _____- _____..____ • _ __ -___ •__- __ -8 -__ • ____ - 22____ r __ -__- • ______ 2T --__ r _______ I u s Gel IbY100ft' • 9 • 7 • 9 • 13 P v 1 r - 1D r0 (n GeT - 16/130tV •- 12 • - V - • ;{ • 19 r 1 • 13 307rTl sr ---- --- - -- lb/ VOW r-- -- •q_ --- 6. _ - --8 - -_ • ------- 14 ---- •° - 20 - -- r - --- i -- 8 - - -- A 111L - cc /30min • - - ---5T r - -- 5.13 - - - • - - - - - 6 • -- - 6,D - -- s __. -5.2 r .._... --5 -9- HTHP FL cc/30min . 1 r • 1 r' 1 i --- -- - -- 1' r - T -- Me -- - - - - - - --- ' %Vo • 4 • - -- -- 3 •' -- - -- • 1 •-- - ' 4:5" i ----- Water --- - -- - - -- - gvol r' -- gS.S - r -94.5 •- - 93:5 _. r 92 - P -- - - - - 9 •- - 935 Sand %Vol • 0.7 • 0,5 • 0.5 • 0.6 • 0.5 • 0.5 fart - - -- -- lb/bbl • iJ:U r -- - 1 . 3 • - --- -- - -- r --- 3:6 -- • - - -- -- • ---- -- . 8 ---- P H rTP ---- - F • 80 ► - �U -- 70- - _..� � Al 70.R -(p - - ____________ - p 0� • 535 - • 0.4 - • • • • - p�- - - - - -- - - -- - - -- - • 0.02 �- • 15.E - -- - • -- - x:13 - • --- ---- 0 . 2 - - -- - ---- 0;1 - — 171-- - — i Tr- r -- - is - - -- r 39 - r - • - {6, - i c lM3ff�1 a mg/l_ • 20000 • S000 • •8000 • 13000 r 7508 i -. riardrtess, -Ca- __- ____._- u ______ - -___ •_ - • • - ____. ___ • ___ - _ .___. • -___ ____ r -MO ____ ussaveOUXygen ` Ppm - r -. -__ ____. • __-- r ___- __ -. I r t)4 ppm • 3200 • 440 • 3900 • 3900 Fbtassium - mgn X606" 31060 1%/003" 17Ub0 - ARSurezn ----- --- ---- - - - - -- 51Ze - - -- -_ Remarks -- ---- ---------------- - -- --- -- -- RlH vdnew BHA. Dff out cmt, shoe, 20'. Fm 013.4 EM W, drihed 03671 @report time. Drlled to 4,631; circ. hole clean; sht. trip to shoe; drilled ahead to @4913' @midnight. -- Dd f/496259` circico nd. suffice to surface; back ream to 4630'; ran in an elevators; drilled to 06565' 8 - Drilled 06565.725; short trip to 6133'; RIH at repo rt time on elevato rs. RIH 06642 -7598' on eievato rs; vash/ream to 7694'; drilled ahead to TD ©8618'; Tripped out 07598 -6067' on elevato rs; evrked tight spots; back reamed/aesh and ream 06067- 2467'; POH e IFE • • Cook Inlet Natural :Gas Mi SWAC CINGSA T R A : _. :. Well: Cannery Loop #4 1 Oli` , Q a� '� A Schlumberger Company Kenai, Alaska Mi SWAC �- ASchlumberger Company Drilling Fluid Summary Operator: CINGSA Field /Area: Cannery LoopKenai Well Name: CLU Storage #4 Description: SEC. 9/T5N /FI1W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 10/9/2011 10/10/2011 10/11/2011 10/12/2011 10/13/2011 10/14/2011 Depth ft r 8619 r 8619 r 8619 r 8619 r 8706 r 9478 _ 117t) ft i" F -- -- 492b ---- r -- 4azo - -- r --- -4925 -- F-----4960---- r - -- - °_ - Activity -- 7 n ' p Out - - Run Casing Rig �mtfs. 121tiw78HA;N8 Baling - VC/odd - rig pipe �' - -'- - Ho -Pro N f -- Fr o 7 1:7o RT FM -Pro N r FIo -Nio 11T Flo -Pro NT Flo-Pro NT T i O T e - S I g a - - - m 12250 - - - - ---- 12250 - - -- 12250 - - - - - - - 8.500 - - -- 8.500 -- - - - 8b00 Grentur -- -- --- --- - -- b61 -1748 - -- 1162 1 - 1176 ..- How Plate gal/min - - - -- " -' -' ._.__.__._. _.___ .__.__._._ 305 _._._.. Urc l- ensure psi - - - -- ^- 1551 . PR - - - MT -- PR I int 9 I aken - r 2300 r 2230 23:00 -- Ot00 2130 ROWlime I e?p- - it - -( r - gs - - NA - 76 - -- r ----- 136 -- --- Mao vvegnt Mild Temp 1= r 80 r 78 r 80 r 69 73 81 PT.INI�'TV- ISCosiiy_- -- -- __ / - ' --� - -- F------68---- r --- --- F- -- - 5r - -- �'- -° - - - -- i -_ .- - - - RPtbYdZjy��--- - - - - -- -- `F. r $0 -- --- �6 - -- r � - -- r { 0 - - -- r � - r R600 r 48 r 47 r 44 r 45 r 40 r 48 ✓ -34- r - r ao r 30 r 2/1 r 3t - 8100 21 r 21 r 17 r 17 'S r -- -- - - --- --- -- r ------ 5 - ---- r 5 --- r - - - - "6 - --- r 4 • -- - cP --- -- --- - 1 4 ---- r - 1 1 - --. --- -- 'y - --- . --- -- -- , - --- r r r r r r - - ____s__ - _ - - _ �____- __- ________ -___ - 1b/�Oft° r 20 r 'e r 5 r r iO s TbTiObrt r 13 r r g r 9 r 6 r - 5 - -- - - -- - - 1u mum-- TW1xm= .a - r 12 r IS r N - - -- r .� - - -- r >z r 3U m tfel - I. •. 2 . r r 13 14 r 14 r 14 r 5 _ -__ _ -.�__- -___ 5 .- - -__ - -. .....__ -__ - -. ; - - _ _- __ __ _. . -- -._- A}7(}L cc /30min 5,.4 _ - -- _-- r 5.4 r 6.8 r 6.8 r 8.7 r 6.8 HII - !'l - L c •.m MIIIIMEMIll _ _ CaTce AR efTP - - 1 Solids . %Vo1 r 4.5 r 4.5 r 4.5 r 4,5 r 3.5 r 4.5 -- -- -- --- --- ------ VOTer -- - %VOI r 915 915 r 915 r 915 r ea r 93 Sand %Vo I r 0.5 r 0.5 r 0.7 r 0.5 r 0.2 r 0.33 MBT lb/bbl r 14 11 r 13 13 fl 12 r r r ID_ r 9.2 92 r 119 r 117 112 P-H -Temp - - T r r 80 r -_ 80 r 72 r 81 ao . .•. • .---) r 0.3 r . 0.2 .. r 1.8 r 17 r 3.1 r 2.0 P(' • 0.1 r 0.05 r 0.95 r 09 r 12 r 0. rW.t� r 155 r 15 r 175 '•• t7 r 2.0 r 2.8 Chloride -- - mg/L r ._ '8000 r 19000 r 17000 r 5000 r 13000 r - -- 17500 - _ - - r r• Bess, - • r 20 0 r 200 r 800 ' 60 r 720 240 1M ppm r • •• .p. - _.- PPm r 3000 -- -- - .50 -- reen -. .... size - Remarks P/U BHA -RIH to TD; circulate and conditio n; pumped sweep and tube pill; POOH to 2386 Tripped out and L/D BHA; rig up, run casing string Ran casing to 8506'; Cmt & disp; ND stack Changed rams, tested BOPS. Serviced rig. Began picking up 8.5" BHA 84 and began tripping in hole. M U BHA & RIH_ CBU at DV plug. RIH to 7171' & C8U; Drilled float shoe, performed LOT to 505 psi (15.5 ppg EM M6. Drilled from 8,646 to 9,478' MD, working through tight spots, Lost all returns. POOH, working through tight spot: • . MI �"�V/AC Cook Inlet Natural: Gas Well: Ca STORAQ Cannery Loop #4 a r a '� ' A Schlumberger Company -' Alaska Kenai, ■ iSYYl A Schlumberger Company Drilling Fluid Summary Operator: CINGSA Field/Area: Cannery LoopKenai Well Name: CLU Storage #4 Description: SEC. 9/T5N/FIIW,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 10/15/2011 10/16/2011 10/17/2011 10/18/2011 '. 10/19/2011 10/20/2011 tiepin ft • 9478 r 9 // 4 r 10500 r 10500 r 10500 r 11.1SUU TVD ° _ ft r 6092 r S0/1 r .__.5II -Z__ r - -51TZ r s7tz r ---STU . - ATivrt '- - Cond orun - T4ble - - T n5'7k'n 7CFee3 -- Tapping i - -- Y 9 _ 9 DP n9 - T�fsn9 aownSHA R1Frv/TrAneroo DP - -- ' 'TdPMn9 - I8i8Type -" -- ' -. -__- -- Fro - .1t75141 - -- 99)- P - ro?JT - _ -- Fb- PrOTTr -- 7T0- Pi'oN1 - T15-Pro N ■ - ' 1 f9r F1510 Sae — m 8500 -- T8 - 8:500 5.500 13300 SFiQO C V oiurre - -- bbl — 120 "444 294 197 -- -------- 7/0 How irate -- gaamin " ° 54$ — " 352 352 --- --.- -_ UrC Pressure - psi 1551 213 7 7(39 - - -°' Aver6g€"1 - 4i 81 ----- BT - - -- ! -- -- Sae From - mpl -- pTr - pn - CTIVE Ise typY - logy Trie - Taken - - 20:00 - - 2143 - Ma 2200 33700 -- - 2 - 0:6 -° ' - - r 63-- How Late l enp � r - SS � � - -- � - - g0 r _._. ma'V17egfir — lb/gal --. -. r TT 91 -- 92 r - -- i-----974-- 1411d F - - r 78 r 71 - r - 82 - r - 7S r - r $3 Funnel vrscosrty 's /qt /7 ----- 48 ----- r 57 r ' - 47 is 50 r 32 r S2 F Neology Terre F r 120 r 120 r 20 r 20 r 20 r 20 8600 -. - 5p r ;g r :yp - ag 45 r d3 K300 - r 33 r 30 r 31 32 r 31 r 30 8200 -- - - F --- 2 - 9 ----- r 74 23 - - -- -- - - 23 -- r - - -- -_ _ _ _' -7 ' r - kti r 5 r 5 r 5 r 6 r 5 r - 5 r - - 4 - .- - - -- - - - - - -- - - - -- - -- . - q -- r 4 - - -- r 4 r - a - - -- r - - - - -- - ----- -- -- ---- r it r - 6... - -- r - 94 - r -8 T'- ------ VW r_' - - r r - -g - -- r'- 13 _ -- F --- 17 ---- r p- -_' r ---- 6 r --- - - - -- --- - 4_ - - . 10 GeT- ------ -- - -- 16190it= r - 5 r .. 5 - r 5 - r 10 m Gel Ib /20ft= r 9 9 r 1) r 9 r 9 r 8 3u m t.ieI - i6/ Vort= r r -- — }p ' r — r" — fl r fr cc /30min r 8;6_- r8_1r_--6:0r _r - _. HI I ' FL Ierrp -- T Cake AH - r 1 r 1 r 1 r 1 r 1 -- r 1 Ca le HI — - -- . ---- __ _ _ --- - SooTt/ - -_°' a/Vol r °_ - -_ r 13 - r _ 5 ____ r �____ r D - %VoI r 2 r 3 ____ r __.__ 5 r 23-- ___ r _- -__ __ r_____ -23 Wafer - r - r 91 - r - r - 923 r 5 r -R.3 band %Vol r fjg" - . " r 02 r 025 r - ._._. ._.__ r .__._ .11.25. -._._ 025 MK - __.___.____ Ibtbbl r __.____ 12 - ___ r ______ 4 r 13- r_____ ft r 13 ____. p - H - e2 -- 112 - 92- -9-2 r Pr r - pH tenp AIkaI Mud (Fn) r 0.8 r 0.6 r 0.5 r 0.7 r 0.8 r 2.1 I-1 - r 02 r 02 r °_ -°-° r°_°_05__-- 0.1 r °°_T'r_ - -- IG1r -------- ---------------- r., 14 - -- r II r AT r 13.7 -- -- r AZ r 19 - -- Cti(otide mg/L r 73000 r 8000 r X r 13000 r V00 r - -700 Hardness, to - Cr`ssotvedUxygen ' ppm r 2 r 2 r 2 r 2 r 2 r 2 C`olTgor 404 FbTasslum mg/I ■•---- - 73d00i -- r 60d6 - - r 77300 - __ : ___ 6006 i' r 170 ARScreen -'--' sae - r 120 - r - --129 -- _ _ ®- r 120 r 20 - Remarks Continued working through tight spots. Opened 1N ell Commander, regained circt4atio n. Tripped out of hole to casing shoe. D rI to 9768'; POH, Bost returns, pump 35 bbl Icm p91; open Com Tool; spot 7010m pill, close too I, RIH drl ahead. Driled to 13,242'; Short trip to 9768'; Slide and drill to 13,500'. B ackream short trip to 13,242'. Pump/rotate to shoe 8ack ream t /9500 to shoe twice??? No hob problems except loosing mud. POH, LD BHA. _____ Run CBL. Change rams to 5 X 7 variable; test. RU and run liner. TIN with Liner onOP. Cemented liner, minor losses; circulated casing. POOH. Transferred mud from pits to Tanks. e IRE III • A Cook Inlet Natural. : - Gas MI cnvGSA (�''(''�'`� - ------ OR Well: Cannery Loop #4 S 1 AQ s A Schlumberger Company r Kenai, Alaska MI A Schlumberger Company Drilling Fluid Summary Operator: CINGSA Field/Area: Cannery LoopKenai Well Name: CLU Storage #4 Description: SEC. 9 /T5WFI IW,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 10/21/2011 10/22/2011 10/23/2011 uepm - -- ----- - --- - - - - -- TVD-- - - - - -- ft i - -- r.� r-- - - -3iiY --- - - - - -- AtTivlTy - - - 'Tifj4 lOfudType _____ ___ - _ _ =Pro NT ThPr5/Bnni fl o7B'nne -- _____ -- - °--- - --. -_ - --•_- - -° Fires-$trg- ---- -- --- -- -- ;n - - -- -- 5500 - - ---- 8:50Q -- --- --- 8.500 -- - --- - -- - - - - - -- ----- -- --- -- UrC V5R7fl'f�•_ - _' - ___bbl -- _ -- fig - ' .- - - RBT - ---- 53g -- --- ____ -_ .---- - --_._ __--- - -__.- ROW Rate -_ - .- --- ------- gaUmin - -- - _ - ._ _ --- - --- - 3 - - -- -- - - 3 - -- Urc tiessure psi ' Average NUS Sample Kam - PI PI it — - I i nt I aKei1 . - ."", 2100 22 :00 FTOW 1 . _. e.....- ._,_..... -- na - ----nil v. _.M.. . ...__, __ ..�. � � Mid Weight lb /gal • 8.55 r 8.55 • 8.55 Mud Temp T • 75 r 75 - - - T r 120 r 120 — — _ -- _ - - - ------ - - - - -- ------ - - - - - -- r --- -- r---- • - -- r---- - 1 - - -- -' -- - .----- ------ ______ - ---- -- •rQ ° -- ------ _1[,7pert= ii ---- - -- r---- - r - - -- r - -- T - -- - --- _ -- -_-- ______ - _- --_ - _- 'IU in l,el 1011.51' P 1 r 1 r - 1 - 3U m Gel ibf vutt` • 1 r i • AM 1 cc/SUmm -- - fi1HPFC - ----- cc730 Cake AR Cake Kf Sows %Vol r —1- -- r "__ i °— ______ Or - %Vol water %Vol • in- r.- _.__. _gg'_-._. Sand %Vol MEM lb /bbl - -- - - - - - - pt#Terrp T . 75 r 75 --- -- -- ------ - -- - - -- --- -- -- - --- ---- ------ -- - - - - - -- A1Kat'p►1Qtrm/ ---- - - - - -- ---- - - - - -- - - -- ----- - - - - -- --- - - - - -- Ultorloe mg /L • mug ? 'emu r VOW — . Hairiness, to -- - Lllssoweouxygen ppm coTTgtr40 ppm - PptaFelDnr - _ -- -. v` mg /l • -- - gppp --- - P '5000 r-- 17001T - - -- - -- - ---- ------- All Screen size • Remarks POH Lu Mir tool. RIH N./polish mill , clean out Pn R. POH LD DP. aus oat u ng. r torah RIH vd 7" tubing; space out, diepolace t0 6.551r�rne. Lana tubing in t7' hange Par, es . Nriefack, N V tree - - - -- - - s. IFE . • Mi SINAC CINGSA Cook Inlet Natural; Gas _�,,° Well: Cannery Loop #4 v 1 O l,A s p"'� A Sehtumberger Company Kenai, Alaska ` J HYDRAULICS SUMMARY Mi SWAC A Schtumberger Company HYDRAULICS SUMMARY - API 5th Ed. Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage #4 Description: SEC. 9/T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 9/27/2011 9/28/2011 9/29/2011 9/30/2011 10/1/2011 10/2/2011 10/3/2011 10/4/2011 Depth ft • 115 • 635 • 2483 • 2483 • 2483 r 2482 • 3385 • 4726 Days Since Spud *RHEOLOGICALPROPERTIES Mud Weight . . . - .Isar .. 9.3 • ' 9.2 • 9:4 . . r 9.2 • .. 9:2 . • ...8.8 'r 8.75 .. '8.9+ - Plastic Visc cP • 16 • 8 • 16 • 15 • 15 • 11 • 10 • 1 1 Yield-Point , ,.._. ._.. _..._.. . - ......._..._... ..... 1,6. 32 . 1 , 1 ._.. ... ._. .. _ ...2.3 .. ..19. 3 -rpm Reading Fann deg • 3 • 7 • 10 r 8 • 8 • 8 • 7 • 7 n Value • 0.6163 • 0.3047 • 0.7365 • 0. r 0. • 0. r 0.4403 • '0.544 k Value lb 'n,t 00ft • 0.6425 • 5.0849 • 0.2429 • 0. • 0. • 0. • 1.7972 • 0.8069 Tafir .... s • ._.... 2: . . . • .._. 6 . - • .... I ... • -. : ..... • . ,.. 0 :. IF . • -_ _.. • - 6: *FLOW DATA F r o w R a t e ___._M_..____.___._._.__.._ garmin • . 317' • 419 • -546 r 0 . . . r .- 0 -_. r __.. _, • 534 • " - 5I8 Pump Pressure psi 500 1100 1400 1200 a 1200 - Pump h hp * • 269 • 446 • • * r 374 • 363 *PRESSURE LOSSES Drill String psi * • 93 • 461 * * * r 403 • 515 Bit psi * • Ibff • 292 a * a Annulus psi * • 5 r 14 * * * •• 38 r 44 Total System psi * • 266 r 767 * * * • 735 r 841 *BIT HYDRAULICS Nozzlls 1.32" 3x18 -- -- - 3x18 3x18 - - - rgx3 • __ 3 - • 3_ 8x12 8x12 Nozzles 1 %3 • 16 • 16 • 16 • 16 Bit Pressure o * • 15 • 21 * a * r 25 • 23 .. -.__.. . ...._.,..... _. .-- B i t ....._ ._ ..._ . hh P * • 41 - . •. . - - - - - B i t HIS (index) * • 0.2 • 0.46 * * * • 0.78 • 0.72 JetVelocity - - - ti s * - • 143 • 186 * a - - * - • - 194 • 188 Impact Force Ibf * • 285 • 495 * * * r 469 r 449 *DRILL COLLAR ANNULUS Velcosity ft /mm * • 46 • 60 * * * * • 141 CriticalVelocity ftimm a • ' 585 • ' 396 * Reynolds Number * • 40 • 83 * * a * r 373 Crit Re (Lath-Tram) - • - * • 3053 r 2461 * * * • 2867 2725 *DRILL PIPE ANNULUS V e l o c i t y - - ft/min *.... • 40 • . 52 .. a ..... _,.. - *... ..... . r .. 103 • - _102 Critical Velocity ft -`min * • 554 • 373 -* * - * • 494 • 431 Reynolds Number . a ... . • 34 ., . r . 65 * a - - -. . a . - - r 237 ' ' ._ Crit Re (Lain -Tram) * • 3053 • 2461 * * * • 2867 r 2725 *HOLE CLEANING Slip Velocity ft /min * • 17 • 48 * a a • 24 • 32 Rising Velocity ft'min * •.. 23 • 4 * * * r 80 r 69 Lifing Capacity a o * • 58 • 8 * * * • 77 • 68 Cutting Cone -... - _ . _ . . . _ . . . _ . . __.._ - . • 7.1 •39 :99.. * , . a. . . . . . . . . . . . . . . . . 5 . 6 " • ,. . 4.32 Penetration Rate ft.h 100 100 100 100 100 225 150 *CASING SHOE PRESSURES - .._..- --- --- -_.- g -- - * • - r - -- - * a - -- - - * -- r- - • -- BCD --- - -. -.. ]b' a] 934 9.55 . ECT3 +cuttings__ Ib/gat * • 9.9 • ., 9-.96- . * - ..... ...... 'ii _ _ - _ . _ _ *.. r 9:52 r_ 9:49 *TOTAL DEPTH PRESSURES ECD Ib;al * •' 9.36 • 9.57 - a a * .. • 9:04 • 9'39 ECD+Cuttings lb/gal * • 9.92 • 9.98 a - * * • 9.59 • 9.56 M -I Lcc 131627 DRILLING SYSTEM DATA MANAGEMENT SYSTEM e IFE 0 0 il Cook Inlet Noturol:Gas Mi m,„....„0...- CINGSA STORAOE Well: Cannery Loop #4 .-as_." A Schlumberger Company ---"---: Kenai, Alaska . Mi svvAcja„,„,„ ...,...,..„,-„--- A Schlumberger Company - - " HYDRAULICS SUMMARY - API 5th Ed. Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage #4 Description: SEC. 9/T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 10/5/2011 10/6/2011 10/7/2011 10/8/2011 10/9/2011 10/10/2011 10/11/2011 10/12/2011 Depth ft ' 6437 "-- 7694 ' 8619 ' 8619 • 8619 • 8619 • "8619 • 8619 .. . Days Since Spud ' * *RHEOLOGICAL PROPERTIES Mud Weight lb/gal • 9.0 • 9.1 • 9.1 • 9.1 • 9.15 • 9.15 • 9.15 • 9.3 Pristic cP • "1 ' • • 14 r 13 ' 0-- 14 ---•- 14 • 14 • - 15" . " Yield Point 111100ft - 22 26 21 ' 21 20 19 16 15 3-rpm Reading Farm deg • 8 • 11 r 10 ' 9 1 ' 8 • 8 • 6 • 6 . .. 1 n Value . ' * • 0.5499 • 0.5522 r 06211 • 0. • 0. - • 0; " • 0. '0.6567 • 0 • 0.9582 * 03404 • - 0. • O. • 0. • b. • 1/4328 TauY • 7. . 10. " 9. • 0. • O. • O. • - O." • ' 4. - •FLOW DATA Flow Rate - ' ' galMin • 565 V 565 • 640 • 0 • 0 r '0 ' • - 0 • ' 399 Ptitnp Pressure ' psi 1550 1820 2140 . . - 900 . . . . Pump '' hhp • 511 V 600 V 799 * * * ' * ' 210 *PRESSURE LOSSES Drill String psi • 763 • 900 • 1229 * * * * • 236 Bit psi • 339 ' 344 • 441 * - * * * • 193 - Annulus psi • 64 " 94 • 94 " * - - * • 28 Total System psi • 1166 r 1337 • 1764 * * * * r 457 *BIT HYDRAULICS N 1/32" 8x12 8x12 8x12 - 3xI5 . .. Noziles 1/32" .. - - ' . 3)(14 Bit Piessure - * - % • 22 • 19 ' 21 * * * * • 21 Bit - • ' • ' hhp • 112 • ' 113 • 165 * * - 4 * • 45 Bit HIS ' (index) • 0.95 • 0.96 • 1.4 - * * - * . * ' • 0.79 . . . Jet Velocity ' ft , s • 205 V 205 • 232 * * " • 152 Iinpact *Force Rif • 540* - • - 547 • - 702 - - * * - * *" * • *DRILL COLLAR ANNULUS Velcosity Rinin ' 154 ' '154 • 174 * * -** - - --**- r - 184 Critical Velocity - ft4nin • 544 • 592 • 525 * * - * * * 311 Reynolds Number ' 381 • 319 • ' 455 * * - * * * Ciii ke (Larn:Tram) - • '2717' • 2713 • 2619 • ' * -*• • * - ''P • '2570 *DRILL PIPE ANNULUS Velocity ft/min • 111 ' Ill • 125 * * * • 184 Cral itic Velocity ft/min ' 466 • 513 * 43 5 *- - * - : "*" • *437 Reynolds Number • 272 • ' 220 • 311 * * * * * Crit Re (Lam-Tram) • 2717 r 2713 • 2619 * * * * • 2570 *HOLE CLEANING SEP ft/inin • 30 r - 29 V )6 " . ' * *- ' *- .4" r 5 Rising Velocity fumin • 81 ' 82 • 89 * * * * • 146 Lifmg Capacity % • 73 ' 74 • 71 * * * * .• 79 Cutting Cone 0 .6 • 3.71 • 2.44 • 2.24 * * * * V 0.0 Penetration Rate ft.11 150 100 100 *CASING SHOE PRESSURES ECD 11)/pa1 **** - ON" • g.42 • " 9:4 - - " -±- ' - - -*- --"*"-- - - - - -*--- • - 943 - ECD"-+CnitingS" - * * Ibigal • 9.58 '' - 9.65 • 9.6 • -* * "*. • 943 " •TOTAL DEPTH PRESSURES Ea) * " ' * - - " Ih;gai • - 9.34 • 9.55 ° 9.53 -* . • ' * " *-* ** • 9.43 ECD+Cuttinps lb/gal • 9.68 • 9.77 • 9.72 * * * * _ 943 A84 i..t.c 131927 DRILLING SYSTEM DATA MANAGEMENT SYSTEM e IIFE 0 • � ��WAC Cook Inlef Nafural; has ' . CING STORAQE Well: Cannery Loop #4 as ate, A Schiumberger Company y Kenai, Alaska Mi SWAC .- ASchlumbergerCompanv HYDRAULICS SUMMARY - API 5th Ed. Operator: CINGSA Field /Area: Cannery Loop /Kenai Well Name: CLU Storage #4 Description: SEC. 9 /T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 10/13/2011 10/14/2011 10/15/2011 10/16/2011 10/17/2011 10/18/2011 10/19/2011 10/20/2011 bepth ft• 8706 ' 9478 ' 9478 • 9774 • 10500 • 10500 • 10500 • 10500 bay Since Spud *RHEOLOGICAL PROPERTIES Mud Wetgjt't lb gal ' 9,1 • 9.2 • 9.0 • 9.1 • 9.1 • • 9.2 • 9.3 • 9.4 Plastic Vise _ - - cP 7 - 12 -- - • - - -- • -- ' 17" - • - -16 - • 13 .... • t4 1 4 • 1 4 - - 1 -- y - 13 " Y i e l d - P o i n t _.._. _- __...__.._ ._ _..._..._.._.__. llx l ooft' - 16 14 - ... 16 _ " . 1 4 • _ _ _. _..... _ • • " ". ' 3 -rpm R e a d i n g Fann deg' 5 . •- 4 .._ • - _ 4 • 4 _. • _ ... • _._... 4 .. • 4 • .- . . • • • _. " .. • .. , .. • - .. • • y . ;. ... . • r.- • .. . _`. . ... n Value 0.5653 0.6652 0.6473 • b.671 0.5499 0. 0. 0. k Value lb s "n;100ft' " 0.7361 • 0.4579 • 0.5295 • 0.4112 • 0.9075 • 0. • or • 0. TauY ' 3. • 2. • 3. • 3. • 3. • 0. • 0. ' 0. *FLOW DATA Flow Rate gal min • 427 ' 396 • 549 • 352 • 352 • 0 ' 0 ' 0 Pump Pressure psi 1551 1551 1551 1216 1139 Pump bhp 386 • 358 • 497 • 250 • 234 * * * ' *PRESSURE LOSSES Drill String psi • 623 • 657 ' 1058 • 545 • 437 * * * rt psi 21 1$ 4 14 4 Annulus Psi a 122 137 ' " - • - 159" "- - • 135 • ' ] 36" -* ` -- - -* * Total System .... psi' 961 • 983 • 1571 • ' • 721 .. *• • _ -_* .. _- * *BIT HYDRAULICS Nozzels 132" 3x13 3x13 3x13 • 13x3 3x13 3x13 3x13 : Nozzles 1' 3x14 3x14 3x14 3x14 3x14 3x14 3x14 Bit Pressure 5 . ' 14 • 12 • 23 • 12 ' 13 * * * Bit hhp' 54 • 44 • 113 • 30 • 30 * * - * Bit HIS (index) ' 0.95 • 0.77 • 2. ' 0.53 • 0.53 * * Jet Velocity ft 163 • 151 • 210 • 134 • 154 * ' * * Impact Force lbf • 3 • 285 • • 536' • -2 23 • - 223 * * - * *DRILL COLLAR ANNULUS Velcosity ft %min ' 221 • 205 • 285 • 183 ' 163 * * * C r i l i a l V e l o c i t y _ _..._._._. ftmin• - 473 .. • -272 ' "292 • 448' • 117" .. ¥.._ *.. -- _....,,. * ._.. Reynolds Number ' 858 * * • 716 * * * - * Crit Re (Lam -tram) ' 2696 ' 2559 • 2583 ' 2551 • 2717 * * * *DRILL PIPE ANNULUS Velocity ft /min ' 392 • 205 • 285 • 183 ' 163 • * * * Critical Velocity ft /m ' 471 • 616 • 292 • 434 • 489 * * * Reynolds Number ' 863 • 1235 * • 748 * * * *' C r i s R e ( L a m - T i a ra ) .... 0. 2696 • 2559 ' 2583 • • 2551 • 0 " 2711 - * • *.. • *- *HOLE CLEANING SIi ' foctty ° ___.- ._._ ---- _._ -- ft/min i ... • . - . • ...... 36 .. • 40 - • ... __ 30 _ . . *, ...... ..... * Rising Velocity ft'inm • 360 _._ • ..... . 1 . 6g . .._.. • __ 249 • 143 -- • 133 _*_.._.__ __.* __.. _ . _.- * Lifing Cap achy ° o ' 92 • 82 • 87 • 78 • 82 * * * Cutting oo .. 010 • 0.62 ' 0.42 • 1:09 • _ " - * *- - - * - Penetration Rate ful, _ - 41 41 61 61 *CASING SHOE PRESSURES ECD Ibfgal' 9.58 • 9.67 • 9.65 ' 9.51 • 9.67 * * * ECD +Cuttings • lbigal ' 9.58 • 9.73 • 9.69 • 9.62 • 9.78 * * - * *TOTAL DEPTH PRESSURES ECD - - lb /gal " 9.6 • 9.77 • 9.65 • 9.63 • 9.65 * ECD +Cuttings Ib,gal 9.6 • 9.83 • 9.69 • 9.74 • 9.76 * * _ * N1 131627 DRILLING SYSTEM DATA MANAGER ENT SYSTEM e IFE • • Cook Inlet Natural, Mi S NAC CINGSA - - -- Well: Cannery Loop #4 STORAGE x .: ' A Schlumberger Company Kenai, Alaska Mi SWAC� A Schlumberger Company "' "' HYDRAULICS DRAULICS SUMMARY - API 5th Ed. Operator: CINGSA Field/Area: Cannery Loop/Kenai Well Name: CLU Storage #4 Description: SEC. 9 /T5N/R11W,SM Contractor: Nabors Drilling Location: Kenai, Alaska Date 10/21/2011 10/22/2011 10/23/2011 Depth ft • 10498 • 10498 • 8425 Day Since Spud *RHEOLOGICAL PROPERTIES Mud Weight lb gal • 8 "55 • 8.55 • 8.55 Plastic 'Vise . ".. cP • 1 • 1- r 1 Yield Point ' ' ' Its ' 1 1 1 3 -rpm Reading ' ' Fann deg • 1 • 1 • 1 n Value - 0. _ • 0.9994 • 0. k Value lbs'n/100ft= • 0. • 0.002 • 0. Taut .- -.. • - 0 -- r —1. . • - 0 .... .- *FLOW DATA Flow Rate - - .. -., . . gal /min • 0 • 3 • . 3 . -. . . Iefiiiii psi Pump - hhp - r ---- -*- *PRESSIJRE LOSSES Drill String psi * * Bit psi ' * Annulus psi * - * Total System psi * * *BIT HYDRAULICS . Nozzels ' ' ' 1/32" - - Nozzles 1/32" .. . . - - -. Bit Pressure . __.._._.____�___.._.p.._._,_.- hhp - . ° ___;r _ ° - s - --- Bit HIS -- -- • - _ - - (mdex) * • 0.- -* Jet Velocity ft /s * * - - - - hnpad Force lbf * - * *DRILL COLLAR ANNULUS V e l c o s i t y ... ... __ ftinin - * - -- - - - .. - - * * .. . Critical Velocity ft /min * Rey nolds 'Number ' - * . * • Crit Re (Lam -Tram) * • 2101 *DRILL PIPE ANNULUS - ... _ V e l o c i t y . ft lmin -* * *. Critical Velocity ft/min * * * Reynolds NuRrber ,_..__.., ..._ -_ *_... ..... * . _. *... Crit Re (Lam -Tram) - * • 2101 *HOLE CLEANING - Slip Velocity ft /min * * RiimpVeloci tty_ ft 'min * s • -. LiSrig Cap achy . o . _ . -* - --- ._.,.. * - -._- _ _ *__.. _. Cutting Cone - - -- - - - - - % *.. " * - Penetration Rate ft ..11 *CASING SHOE PRESSURES - ECD+Cuttings lb -gal * * * *TOTAL DEPTH PRESSURES ECD lb`gal * 0.0 *. ECD+Cuttings Ib'gal * • 0.0 * M - i.t.c 131827 DRILLING SYSTEM DATA MANAGEMENT SYSTEM • Cook Inlet Natural; has Mi `;WIC CINGSA STORAGE r:... Well: Cannery Loop #4 Qs s *4°' A Schlumberger Company Kenai, Alaska DAILY DISCUSSION RECAP 9/27/2011 TD=115 Report No. =1 Transfer used FloPro to pits for spud Mud Program change- -using used FloPro system from last well to spud this well; preparing to mix pre - hydrated gel to use in building volume with the FloPro; Myacide used to treat for bacteria in stored fluids Rigging up; pick up pipe, HWDP; tested lines with water 9/28/2011 TD=635 Report No. =2 Built pre - hydrated gel in pit 6 for spud; function tested diverter; drill to 255'; POH to PU remainder of BHA; RIH -drlg with surveys; vise gel sweeps periodically; adding Flowzan for increased rheology for hole cleaning; large quantities of sand/clay on bottoms up; drilled @635' @midnight Centrifuge stored mud in Tank 5 to 9.2 # /g; Centrifuge mud in Tank 4 to 9.2 # /g. Di-Ito 255'; PU BHA; drl to 635' at midnight. 9/29/2011 TD =2483 Report No =3 Drlg/sliding as directed; build angle to 61.5 deg; drilled to TD @2482.8'; circ. /cond.; viscous sweep; CBU 2+ times; short trip to top of HWDP @report time Build pre- hydrated gel; pump sweeps as needed; transfer mud from storage as needed; total reused for this well is 700 bbls; added Flowzan for rheology; added PolyPac for fluid loss control; transferred in 240 bbls used FloPro from storage (no charges) for volume; ran water while drilling for volume Dr1g/sliding as directed; build angle to 61.5 deg; drilled to TD @2482.8'. circ hole clean. Sh trip to HWDP 9/30/2011 TD =2483 Report No. =4 Wiper trip to the BHA; RIH to bottom; CBU -pump HV sweep; POOH/LD BHA. R/U -run 13.375" csg; running casing @!midnight - -slow going, tight conditions Clean Tank #3; Prep pits for cement job. Top off water tank, heat to 70 degrees. Lesson learned: Be sure to thin mud before POH to run casing when using USED FLOPRO mud for spudding. Wiper trip to the BHA; RIH to bottom; CBU -pump HV sweep; POOH/LD BHA. R/U -run 13.375" csg; 10/1/2011 TD =2483 Report No. 5 Work casing to bottom. RIH w /dp. Circulate 13.375" csg annulus. Mix cement spacer in pill pit. Cement & displace; cement in place at 11:30 am. Pull 25' up and circulate casing and dp clean. LD single and pump dp wiper balls. POH w /dp. Maintain full returns during cement job. 12.0 # /gal cement returned to cellar. Haul off mud used during spud; start cleaning pits. RIH w /csg. Run DP into casing. Cmt and displace. Dump excess cement; dump mud; clean pits 10/2/2011 TD =2483 Report No. =6 Test BOPE; set wear bushing; rig up /test casing string; making up drill pipe to stand back in derrick; rig service; R/U to pick up BHA • • Cook Inlet Natural Gas Mi SWAG CINGSA Well: Cannery Loop #4 STORAQ A Schlumberger Company Kenai, Alaska Finished cleaning mud pits; repaired valve leak; transferred in mix water; mix new volume; maintain pit 6 with old mud for drill out; changed shaker screens to all 200 mesh Test BOPE; R/U to pick up BHA 10/3/2011 TD =3671 Report No. =7 P/U BHA -test directional tools; P/U HWDP; wash/rotate into hole; tag fill /cement @2333 -2414; drill shoe and shoe track to 2502'; circ. /disp. to new mud system; clnd. out around shakers; FIT @15.4 EMW; drilled @3671' @report time; circ. btms up every 500' drilled RIH w /new BHA. Drl out cmt, shoe, 20'. FIT @15.4 EMW; drilled @3671' @report time. 10/4/2011 TD =4918 Report No. =8 Drilled to 4,631'; circ. hole clean; sht. trip to shoe; worked through some tight spots; rig service; RIH -wash and ream tight spots 2873-3192'; RIH on to bottom; circulate system surface to surface; drilled ahead to @4918' @midnight Add 3 totes of Lotorq and 1 Screen Clean before short trip; mix 100 BBIs of volume in pit #6 while tripping- -blend to active; requested by co -man to let weight increase to 9.0 ppg; centrifuge off; start Resinex additions; continue tour treatments, water additions Drlled to 4,631'; circ. hole clean; sht. trip to shoe; drilled ahead to @4918' @midnight. 10/5/2011 TD =6437 Report No =9 Drl f/4918-6259'; circ. /cond. surface to surface; back ream to 4630'; ran in on elevators washing last stand down; drilled to @6565' @midnight Continued chemical treatment; adding lubricant per company man request; increased torque; water added @15 bph for volume Drl f/4918-6259'; circ. /cond. surface to surface; back ream to 4630'; ran in on elevators; drilled to @6565' 10/6/2011 TD =7694 Report No. =10 Drilled @6565-7215'; pumped Nut Plug sweeps in attempt to clear bit of potential balling; drilled @7215- 7694'; circulate /condition -- pumped sweep surface to surface; pump repairs; wash/ream short trip to 6153'; RIH at report time on elevators Mixed lubricants (Lo -Torq; Lube 776) to concentration @4 +% in system; Nut Plug sweeps (20 ppb); ran water @15 -20 BPH; continued remainder of chemical treatments as directed Drilled @6565-7215'; short trip to 6153'; RIH at report time on elevators. 10/7/2011 TD =8619 Report No. =11 RIH @6642 -7598' on elevators; wash /ream to 7694'; drilled ahead to TD @8619'; circulate and condition - -pump bottoms up; hole clean; POOH back reaming @8619 -7598' @midnight Added lubricant at 8050'; reduced torque from 22 -23K to 19 -20K; added Asphasol and Resinex to stabilize coals and lower fluid Loss. RIH @6642 -7598' on elevators; wash/ream to 7694'; drilled ahead to TD @8619'; 10/8/2011 TD =8619 Report No. =12 • • MI SwAC Cook Inlet Natural: has CINGSA '�[�' �... Well: Cannery Loop #4 1 O�� a , A Schlumberger Company Kenai, Alaska Tripped out @7598 -6067' on elevators; worked tight spots; back reamed/wash and ream @6067- 2467' -- casing shoe while standing back drill pipe; CBU at shoe; trip out on elevators laying down BHA; download MWD; service rig, top drive, blocks No mud treatment; barite used for dry job Tripped out @7598 -6067' on elevators; worked tight spots; back reamed/wash and ream @6067-2467'; POH 10/9/2011 TD =8619 Report No. =13 Rig service; P/U BHA #3-- 12.25" clean out assembly; work on top drive; P/U BHA - -RIH to TD; circulate and condition; pumped sweep and lube pill; POOH to 2386'; low fuel caused generator shut down; circulate /condition; POOH at report time Circulated a total of 2 bottoms up when on bottom. Conditioned mud with Asphasol, SafeCarb 40. and G -Seal to repair wall cake after back reaming from the previous trip. Pumped a 40 bbl high vis sweep around that resulted in a 100% increase in cuttings, mostly clay and coal. Spotted a 280 bbl 3% lubricant pill in the lower 2000' feet of the hole for a total lubricant concentration of 6 -7% in the lower 2000'. P/U BHA - -RIH to TD; circulate and condition; pumped sweep and lube pill; POOH to 2386 10/10/2011 TD =8619 Report No. =14 Tripped out and L/D BHA, set back HWDP; clear floor, pipe shed; changed rams to 9.625"; pick up handling equipment; install/remove wear bushing; test tools -test BOPE; L/D tools; rig up, run casing string; circulate and condition at surface casing shoe; run casing at report time Mud system conditioned for casing run; adding Desco and Sodium Bicarbonate whenever circulating Tripped out and L/D BHA; rig up, run casing string 10/11/2011 TD =8619 Report No. =15 Ran casing to 8506'; CBU; ran casing/landed; circ. /cond.; primary cement job; dumped 80 bbls cement/contam. mud; second stage; dumped 35 bbls cement/contam. mud; rig down cementers; N/U BOPE; N/D BOPE, wellhead; install packoff; rig down/clear floor Transferred —560 bbls of mud to de- watering unit - -make room for cement job; dumped 80 bbls cement contam. mud to cuttings tank after opening stage tool and CBU; est. 10 bbls of excess cement; dumped 40 bbls during second stage cementing; treating mud for high pH and solids at report time -- adding Citric Acid and centrifuging pits Ran casing to 8506'; Cmt & disp; ND stack 10/12/2011 TD =8619 Report No. =16 Changed rams to 2 7.8:" x 5 ". PU Test tools, tested BOPS. LD test tools and pulled test plug. Blew down choke manifold and lines. Serviced top drive blocks and crown. Picked up BHA #4 steerable motor with triple combo and TIH. Treating cement contaminated mud with citric acid, sodium bicarbonate, and water. Running the centrifuge to remove solids from the mud. Changed rams, tested BOPs. Serviced rig. Began picking up 8.5" BHA #4 and began tripping in hole. 10/13/2011 TD =8754 Report No. =17 MU BHA & RIH. RIH and dri out DV plug; Circ hole to clean up cement contamination. Hit Cmt stringers at 3450-3750'; circ through; RIH to 7170'; Circ hole clean. Continued TIH, tagged cement @ 8,524'. Drilled float collar and new hole to 8,640'. Performed FIT with 9.3 PPG mud to 1605 PSI (15.5 ppg EMW). Continued drilling to 8,646' MD. • • !��� Cook Inlet NaturahGas MI ��YYAC CINGSA A Schlumberger Company Well: Cannery Loop #4 STORAQ Y s n v Kenai, Alaska Dump cmt contaminated mud w /circ at DV plug. Treated mud with citric acid, FLOZAN, POLYPAC UL, Sodium Bicarbonate, KCI. Mixed LCM pill with SAFECARB 20, 40 & 250 & FLOZAN. MU BHA & RIH. CBU at DV plug. RIH to 7170' & CBU; Drilled float shoe, performed LOT to 1605 psi (15.5 ppg EMW). 10/14/2011 TD =9478 Report No. =18 Slide and rotate from 8,646' to 9,478', backreaming each stand. Worked tight spot from 9,370 to 9,355'. Circulated and conditioned mud BU to clean hole. Trip out of hole from 9,478 to 9,160'. Attempted to work through tight spot, overpull of 43K. Lost returns , TIH to 9,281', pumped at 2 BPM, 186 psi. Fill hole with trip tank, losing 2 BPM. Continue working pipe and POOH to 9,143'. Treated mud with Citric acid, sodium bicarbonate, RESINEX, POLYPAC UL and FLOZAN. Pumped 70 bbl LCM pill with 90 ppb SAFECARB mix. Transferred 313 bbls mud from reserve tanks to active, conditioning as necessary. Drilled from 8,646 to 9,478' MD, working through tight spots. Lost all returns. POOH, working through tight spot. 10/15/2011 TD =9478 Report No. =19 Backreamed tight hole from 9,105- 9.060', pumping at 1 BPM, no returns. Contined working pipe, washing, reaming to 9.058'. Dropped Well Commander ball, waited on ball to drop and seat. Circulated and conditioned. Pumped 85 bbl 9.2 ppg 100 ppb LCM pill. Regained circulation after opening Well Commander. Continued working pipe, back reaming out of hole to 8,608' (casing shoe). Closed Well Commander. Circulated and conditioned mud and hole. Transfer 445 BBIs of mud from storage tanks to active pits. Pump at 1 -2 bbl /min while trying to work BHA into casing. Built 2 x LCM pills w/ 30 ppb SAFECARB 20„ 30 ppb SAFECARB 40, 30 ppb SAFEBARB 250, 5 ppb MIX II MED, 5 ppb G- SEAL. Pumped one pill, one in reserve. To 1130 bbl active system, added 1/2 PPB PAC UL, 1/2 PPB RESINEX, 1 PPB ASPHASOL, 1/2 PPB FLOZAN, 2.5 PPB KCL, 1 PPB GSEAL. Continued working through tight spots. Opened Well Commander, regained circulation. Tripped out of hole to casing shoe. 10/16/2011 TD =9878 Report No. =20 Circulated and Conditioned , TIH from 8,613- 9,468', washing and reaming through tight spots. Slide and drill to 9,764'. Lost returns, 35 bbl. Pumped 35 bbls LCM pill. Tripped out to 9,515'. Shut down pump and worked pipe to 9,525'. Dropped WC ball, Pressure up to 2590 PSI. Circ sub closed, pumped 70 bbl LCM pill. Loss rate 30 BPH. Soak LCM pill 1.5 hours. Slide drill from 9,764 - 9,878'. Pumped LCM pills w/ 30 ppb SAFECARB 20„ 30 ppb SAFECARB 40, 30 ppb SAFEBARB 250, 5 ppb MIX II MED, 5 ppb G -SEAL. Mixed FLOWZAN, POLYPAC UL, KCI and caustic soda to active while drilling to maintain fluid volume, properties. Drl to9768 ; POH, lost returns, pump 35 bbl lcm pill; open Com Tool; spot 70 lcm pill, close tool, RIH drl ahead. 10/17/2011 TD =10500 Report No. =21 Drilled to 10,242'; Short trip to 9768' by pumping at 350 gpm, 74 RPM, torque 18K; well breathing fluid(taking when pumping then giving back when pumps off). Slide and drill to 10,500'. Backream short trip to 10,242'. Circulated and conditioned, TIH to 10,500'. Backreamed to 9,190', packing off at 9,545', with well breathing loss up to 74 bbls, then back to 7 bbls. Added Chemicals to Active system while drilling and circulating: ASPHASOL SUPREME, CAUSTIC SODA, POLYPAC SUPREME UL, POTASSIUM CHLORIDE (KCL), RESINEX, LOTORQ ,FLOWZAN,LUBE 776. Added +/- 320 bbls of water @ 80 bbl/hr to maintain volume while drilling. Pumped 3 x 40 bbl LCM pills w /w/ 15 ppb SAFECARB 20, 15 ppb SAFECARB 40, 15 ppb SAFEBARB 250, 3 ppb MIX II MED, 3 ppb G -SEAL. Drilled to 10,242'; Short trip to 9768'; Slide and drill to 10,500'. Backream short trip to 10,242'. Pump /rotate to shoe 411 • ciNGSA Cook Inlet Natural Gas Mi Well: Cannery Loop #4 STORAC s A 5chlumberger Company Kenai, Alaska 10/18/2011 TD =10500 Report No. =22 Back reamed from 9,190' to 8,608', no tight hole. Circulated bottoms up, TIH on elevators to bottom at 10,500'. Back reamed from bottom to 8,608', no hole problems. Circulated BU and TOOH. Laying down BHA. Continued treating active system with Caustic soda, SAFE -CARB, G -SEAL, MYACIDE GA25 , and FLOWZAN. Variable losses, 1 -10 bbl/hr. Back ream f/10500 to shoe twice ? ?? No hole problems except loosing mud. POH, LD BHA. 10/19/2011 TD =10500 Report No. 23 Run CBL. Change rams to 5 X 7 variable; test. RU and run liner. Began running 7" liner on DP. Mixed 100 bbls new FLO -PRO mud with FLOWZAN, POLYPAC UL and potassium chloride. Monitoring volume gains /losses while TIH with 7" liner. Run CBL. Change rams to 5 X 7 variable; test. RU and run liner. 10/20/2011 TD =10500 Report No. =24 TIH with drill pipe to 8,591', 90 sec' /stand. Circulated and conditioned mud. 10,473 washing down. PU cement rotary head. M/U cement lines and valves. Positioned liner at 10,498'. Pumped 36 bbl 10.5 PPG MUDPUSH, 68 bbl 14.1 PPG FLEXSTONE cement. Dropped wiper plug. Displaced cement with rig pump @ 5 BPM. Bumped plug, set liner packer. Circulated and conditioned. Rig down cement head and TOOH. Added MYACIDE to active mud. Displaced cement with FLOPRO mud. No contaminated mud over shakers. Transferred mud to dewatering unit tanks and began cleaning pits. Preparing to mix KC1 brine. When going into open hole with the liner on the DP, we had to pump the casing to bottom at 3 bpm due to total losses trying to RIH without pumps. TIH with Liner on DP. Cemented liner; minor losses; circulated casing. POOH. Transferred mud from pits to Tanks. 10/21/2011 TD =10500 Report No.25 TOOH, laying down 7" liner running tool. PU Baker fluted polishing mill. TIH to liner top, tagged at 8,424'. Pressure tested csg/shoe 30 min@ 2500 PSI. Circulated and conditioned bit to surface . POOH laying down DP to 5,538'. Transfer mud to storage. Clean pits. Mix 8.55 KC1 brine. POH LD liner running tool. RIH w /polish mill , clean out PBR. POH LD DP. 10/22/2011 TD =10500 Report No.-26 Continued POOH, laying down 5" DP. PU and RIH with 7" Tubing to 5038. Finish mixing 8.55 KCI brine. Clean trip tank, shakers, ditch. Pumped dry job with barite. Prepare to mix packer fluid. Finish POH LD DP. RU & run 7" tubing. 10/23/2011 TD =10500 Report No, 27 Finish RIH w/ 7" tubing; space out, displace to 8.55 brine. Land tubing in hanger /pbr; Test. ND stack, NU tree. Mud Engineer released after landing tubing. Finish RIH w/ 7" tubing; space out, displace to 8.55 brine. Land tubing in hanger /pbr; Test. ND stack, NU tree. OHRE iiiiimilliminnuillit 1 ig ., um fir i 3111 riiiiiii G a � 1:it0 i I g M3113531833333333333333; 1 ` 113033113333311333311113331 iii" I. Hide \\ 4,, • m pi :8111R C� � C� 'ICS i- . � . 1 1 a 3M ©0 3d 3 3 Totd _I1]111 11 �D] r]..l 1 11 11 1 111/101111111111111111111; Wa i �. ON dii 111311311111111111111111111 a- o le 3 1 1 i o § '-'!, a - 33111110 M133 ©Id ©10©100/1 1 11 1 ©300 1 li a 111111111111 111111111111 (An ! i • 1 i 1, r 1 2 1 1111111111111111111 /111/1; D. I �. A 1111111111111 1111 �d1111' D— �� a � C 4 111 1111111100011.1111._ 111111 4 1111/1111H1111111111111 8,� a 1111111111111111111111111 G • • MI �3WAC CINGsA Cook Inlet Natural. Gas _ --- . Well: Cannery Loop #4 STORA 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 #4 well. The Dewatering unit was on hand to recycle used fluid for reuse. The Dewatering unit was utilized secondarily to centrifuge fluid in order to maintain the proper mud weight. Lessons Learned and Recommendations On displacement to FIoPro system, have one hand assigned to fluid transfer from rig pit #6 to MI Tanks other than pitwatcher. Have pit #6 empty when actual pumping down hole starts in order to maintain proper pump rates. When displacement is finished, have vac truck/super sucker ready to clean out the possum belly and under the shakers. A gun line in each possum belly to clean intermittently while drilling would be helpful during surface drilling operations to prevent solids build up and potential overflow. During the injection interval, do not pump more gpm than necessary to minimize ECD. The pumps were backed off from 400 gpm to 350 gpm with no apparent issues. During the injection interval, while performing short trips, it was successful pumping out of the hole at 350 gpm or Tess. When using used fluid for the injection hole interval, confirm that the fluid is in good shape with lubricants, lowered fluid loss, and with the drill solids in desired range. Water was added at 10 to 50 bph to the active system to maintain volume while drilling from 9768' to TD due to partial lost returns. Pit system centrifugal pump suction from pits 1 & 2 is plugged which causes mixing and fluid transfer issues. IFIE • • Mi SWAG CINGSA Cook Inlet Natural: Gas '141' .� Well: Cannery Loop #4 STORA - 'R A Schlumberger Company r Kenai, Alaska APPENDIX 1 PRODUCT CONCENTRATIONS Mi SWAG �+ A Schlumberger Company "` Product Concentration Operator: CINGSA Contractor: Nabors Drilling Well Name: CLU Storage #4 M-I Engineer: Brown/Faulkner Location: Kenai, Alaska Rig Name: Nabors 105E Field /Area: Cannery Loop/Kenai Stock Point: Product Products Concentrations (Ib/bbl) Name 27- Sep-11 28- Sep -11 29- Sep -11 30- Sep-11 1- Oct -11 2- Oct -11 3- Oct -11 4-Oct -11 ASPHASOL SUPREME �50 - L�B y B r �G� L.12ar,•..'. f - -- - -- 222222+ :• ' ' �_ • 7.. 1. 1a= ��� � f ciur_x•f.Y1.:� = r, 1 - - - - -- - -- -- -- 0233 - - 0 7217111111atv 1203 K • • • • 404 55 GA DM 11111.1.11111111111111111111 0.824 0 0.8 • 11141 i_Uaia_1. nbr 01- _ • --11.11.111 i1 117 ' 1. s:, 1+; ",XMF11I121i '' = ` -- -- *..0 0 v v -: • 50 L5BG SAF L -CARE 4O LB 8 11111111111 - - - 7.513 __ 2:095 -- 1547 SAFE 260 - - - - -- 50OFa - - -- - - ----- SCOVASII 50 LB 80 - a 330 - -04.0 — ____ -0 r y y ' 3 3 :BG = - -- 4007 ii`Y ' 0 miuQuilau 1.Y•l■ 1 1;M1 4T.l.c \ice 50 LB_ G 11111.1111.1111111110111111� 0. '" 0.'137 0.4 litIIIIIIIIIIIIIIIIIIMIIIIIIMIIIIIIIIIIIIIIIIIIIIIIII R APINE- ___` I . f • i1 y - __ -- w25rL■B BG � � - - . i/_v 1 :1:4r2lI.e 157 ■..'AIM= 50L.:G MIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIMIIIIIMIIIIII • -SEA • 1 1' K -5O 58 L LB B BG BG SAPE • . SOLB: � --__ • �• � 50�•G � � ME M SAFE -GARB 20 5015 BG ILOTORO ' :.. • 26 LB 8G ���� - -1GA 2.4V 4.0E -- ■ ill • :. a:UPJ1111111111111.1111111111111 LU14.1 111110111111111111111111111111111111.11111111111 11111111.11111111.1111 6- r- KIM LT V 1150 1293 •' y /• • - - LAW 0.096 0284 0270 0265 113 0. 857 6111 .Iflr:T>t= M 1.1. 11131I1cIa ' VIINIIIIIIMIIIIMZIIIIIIINIIIIIIIIIIIIIIIIIMIIIIINIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINIIII 1. IIIIIIIIIIMIIMIIMIIIIMMIIIMIIIIIIIMIIIINIIIIIIIIIIIIMI imilmimmoommilimilammummilmonnommoNsiommommoni 1111 IIIIII 111111111111111111111111111 Page 1 CUM • • Mi �aWAC Cook Inlet Natural has CINGSA Well: Cannery Loop #4 STO RAQ a �, A Schlumberger Company ° f Kenai, Alaska Mi SWAC . A Schlumberger Company Product Concentration Operator: Rooney /Smith Contractor: Nabors Drilling Well Name: CLU Storage #4 M -1 Engineer: Brown /Faulkner Location: Kenai, Alaska Rig Name: Nabors 105E Field /Area: Cannery Loop /Kenai Stock Point: Product Products Concentrations (Ib /bbl) Name 5-Oct-11 6-Oct-11 7- Oct -11 8- Oct -11 9- Oct -11 10- Oct -11 11- Oct -11 12-Oct-11 ASPI-IASOL SUPREME 50 LB BG 1785 3.783 3.629 4439 4229 4.304 3.721 CAUSTIC SODA 50 LB BG 0.475 0.597 0.695 0.667 0.662 0.646 0.642 0.555 - LO VISHDS" - " 25 LB BG ...._........__.. _._......._... }''ULY I•A(; sui-ittivt UL uo LB BG 1372 1274 - ° 1228 1178 ° 1170 1141 ' .135 - 0.981 1.V IASSW l4"ILOH UE (KCL) 50 LB BG 7.620 7220 7.222 - - -- 6.928 - - -- - 6.881 - - - - -- - 6.711 - - -- 6.672 - - -- 5.769 -- - -- - -- -- -- -- - -- -- --- -- --- - --- ------ - - - 0 - --- CON(IOR -404- 0.9 0.9 0 1 55 GA DM 121 1208 0.996 0.956 0.949 0.925 0.920 0.796 M TINA I E (Millie) - - - - -' 5OLB BG ---- :flies --- i - 2.6 3.44 - - - -' 4.055 " -- 4.862 _' 4.741 - 9.608 - -- - 6.480 - 50 LB BG 0.457 0.483 0.449 0.431 0.428 0.418 0.415 0.359 SWAFZIIi6 - §0 LBBG - -- - - - - -' -- --- - -' -- - - - --- - -- --- --- - - - --- - - - - - --- __________________ SAhb•(;Altlf 40 -. &:) .- E6 - 8 - 0 - 1143 - - -��- 0.899 - - - -- - 0741 0.711 1262 - - -- -- - 1231 - - - -- - 1224 1058 SAFE•C.AR -- - --- -- - 50 LB BG ---- -- 0530 -- - " 0A37 0.418 --- 0.416 ---- -- 0.406 ✓.. 0404 0.349 50 LB BG 0.082 0.064 0.205 0.197 0.186 0.191 0.180 0.164 1LA -(iARD 55 GA DM 4.531 3.845 31181 3.532 3.507 3.421 3.401 2.940 IOFIG� EXPORT ' G 0.729 0.573 0.473 0.453 0.450 0.439 0.437 0.378 CITRIC • -ACID- - 50 LB BG - - - - - - 2A60 • T - - - � 25 LB BG 0.074 0 . 0 5 8 0.081 0.058 0656 0.126 0.426 0.4 6 511E 50 LB BG 0.091 0.072 0.059 01757 0.056 0.184 1911 1652 CONCOITAMS 55 GA OM -- ----- -' - --' . -°--' ---- • '------_- _______ -- -- ° - -- ________ ._-_ __. ____. .____...____ O�OAIIJI'R' ' 5 GA CN � -- 0.05 - - - - - - - 0.012 ' °____ - 0.011 0.009 0.009 ' -- 0.009 ---- Olio � -0.009 _ - 0.008 lar FIE _ - -__ 25 LB BG -- - -- ---- -------- -- ------ -- - - - - -- - --- ______ ----- --- - - -- --'-- MX IIWORN 25 LB BG 14.4-1 StAL FIVE a0 LB BG ._... ___......_ -. ___ __ ..... -_ -. _- _....__.___. __-__....____. X01 - 4 - 6111 - G, - . ._--°-- --' . . -_---- °--- °__ °__--' 50 LB BG ---- - - -_ " - 0.658 0.460 - -- 0441 0.438 0.427 - -- 0.425 ° 0.367 - - ------ - ----- - -- ° - - -' --- -------- --- --- --"--°- -- UG�i�E______ 50 LB BG -- � - SAPP --- 50 LB BG _._...-- - --- --- -- -- -- -- ---- --- - - - - - -. G 50 LB BG 0.'02 0.097 0.375 0366 0364 0.314 RESNEC � 5'0 LBBG -- '1902 1496 . 2249 ' - 2.'68 - 2.143 1090 2.078 1.797 .. 2 5 LB B G __ .. SAFE-CARS 20 50 LB BG 30 LB BG ...- 25 LB 8G - - - --- - -- - - -' ---- .- .__-- .-- .- .--- .-. - -. - - - - - -- - - - - -_ . �. .-- -1- 8 111 ___ 9.-. .--- - --- --`-- 9 `- ----7 L� - - - � 1 GA °---- --- - 9.934 9270 8.968 6.603 9.998 9.7 9.694 8.381 -__ --- IGIPAACIDE13A25' 1111 - 5GACN - 07082 0.065 0.159 0.153 0.152 - O.j8 - 0.147 0.127 SCREENICEEN - - 1 GA - - -- 2.424 - 8906 -- - 1571 - - - 1508 1497 1460 1.452 - 1255 FLOVPLAN 25 LB BG 0.775 0.665 0.688 0.660 0.656 0.639 0.636 0.550 51 ttL CUBE EP 55 GA DM PECAN NUT PLUG FIr1E 50 LB BG LUKE 778 55 GA DM ._- - --°. - - ° - 1840 ° 2.145 ° 2.058 ° 2.044 1993 - - '1992 - t7k - 1 111 -- 1111- - 1111 -- 1111 11 11- --- - - - - -- 1111 -- - 11 11---'' 1111 -- Page 2 e OPE • • �� :�WAC Cook Inlef Nafural:��a CINGSA '�"(� m� Well: Cannery Loop #4 S 1 �./ RA i' A Schlumberger Company Kenai, Alaska Mi SWAC A Schlumberger Company = = Product Concentration Operator: Contractor: Nabors Drilling Well Name: CLU Storage #4 M-I Engineer: Brown /Faulkner Location: Kenai, Alaska Rig Name: Nabors 105E Field /Area: Cannery Loop /Kenai Stock Point: Product Products Concentrations (1b /bbl) Name 13- Oct -11 14-Oct -11 15- Oct -11 16- Oct -11 17- Oct -11 18- Oct -11 19- Oct -11 20- Oct -11 ASPHASOL SUPREME 50 LB BG 3.471 2.726 1741 1929 2.862 2.843 2.574 2.573 C S ------ - - - - -- - 50 LBBG 0.513 - - - -- - 0407 - - -- -- 0260 - - - - -- - 0.309 0.356 - - - - -- 0.967 - -- - 0.876 0.875 FC4VLS�LUS °_ _ -- -- °� 25 LB BG --- -- °- POLYPACSUPRENEUL - -- 8018 8G - - - - 11R - -- 1535 ° - -- 0.981 - - - - ' - 1626 - - -- - 2.416 - � - -- - 2.402 -- 2288 - --- - 2267 POTA HILIREE (KIST 50 LB BG 5.380 6.870 6.741 8.180 13.135 13.045 _ '2.753 12.749 • �-° ° ~ - - - -. 55 GA DM - -_ -- 0.742 - - -- 0.583 - ° 0.372 - 0276 - ° -_ -0210 '__- 0208 ' °° 0.59 - -_ -_ D. %9 6016 BG "--- 7.909 ---- 6211 -- --- 3.966 --- 2.942 .--' -- 2.235 - -- 2.335 ' - - 2.R5 ---- 2. SODIUMNETABISULFnE 50 LB BG 0.335 0263 0.58 -- 0.125 - 0.9 5 0.094 0.085 0.085 SATE - � ° -- - -. 5018 BG -- ___ °_. . --- -`° --- -----. -- - °-- . °_---_ - ._ -___. . °_�__ _.___ °_ ��-- °- - - - - -- 60 LB BG - - - -_ t979 -- 1554 _ - -- 2.374 - -- - 5.007 - - -- 4.403 -v 5.141 .° 4.697 -__ -_ 4.695 SAFt CARS 250 °�� 50 LB 60 1317 J 1.034 2.042 4.761 �° 425 4.'67 3.834 - 3.832 SO A-H 50 LB BG 0.153 -° 0.g0 - a - 0.077 0.057 -- - 0.043 0.043 0.039 0.039 � -GARD 55 GA DM 2.743 - 2.154 - _ 1375 1020 - -- 0/75 r 0/70 0.697 0.697 M-I GEL EAFDR r 50 LB BG 0.352 0277 ° -� 0.177 0.131 0.130 0.099 -- - 0.090 -- - 0.089 GEL____ --- 2 LB BG • AL U 50 LB BG 2.8'0 2206 1409 1045 0.794 1384 1235 1235 - - B B - - - - -- 3 - -- - -- -- -- - - -- - -- -- --- -- - -- . - - - - - .0 - -- -- 0 . 0 25 LB BG 0.390 0.306 0.'65 0.145 0.110 0.'09 0.099 0.099 - 50 LB BG - - -- 1739 -- --- 1564 - --" 0.999 ---- 0.741 --- --- 0.563 - - � - - 0.559 ' --- 0506 - -- 0.506 Cb of A' 3 55 GA DM I��t 5GA CN 0.007 0.006 0.004 0.003 0.002 0290 0.282 0262 IFt'E 25 LB BG -- - --- -- '-- - - - - - -- - -- -- - -- ' - - °- -- ---- - -- -- '-- -- --- -- - - -.. 25LBBG 0207 0.407 0.404 0.401 0.369 0.369 M- I SEAL HNE 40 LB BG _______ ._____._ _____ °_. ___ °_ -- '_ °- -___ ° -_ -- - -_____ _-- -_.___ WR_SEAC19E1J&N `40 U3 sG - ____._ _._.__ _._ _._._ __._ ,_._.__.__ ._.__._._._ °__ -._ _ __.____ PECAN NUT PLUG MEDIUM 50 LB B G 0.343 0269 0.172 0.127 0.097 0.096 0.087 0.087 FECAN NUT PLUG CSE 50 tB BG SAPP 50 LB BG - - - - - - - - --- -° - - - - - G- SEA - --- ----- --- - -- - 50LB BG -- -- 0.293 ------ ---- 0A23 ---- - 1234 "----- 0.947 ---- - 1631 1477 ---- - 1477 BIOZAN "5O LB BG ° - - - -_ ° __._ _ -- -�. _ ._____. .. _. _ _.. ._° R .E� 50 LB BG 1874 1471 0.940 0.697 1138 1130 1023 1023 PARSE 25 LB BG - - - - - - - Lu' 'O 50 LB BG 0.553 1989 2.113 3.020 2.776 2.776 MKGMA PISEi2 REG . 3o LB BG ° - - -- - -' - - - - - ' - °- - ` ' - - ° - MAGMA FIBER FINE 25 LB BG - LOTO}RI - IGA 7.817 6.138 3.920 2.908 3.798 3/72 3.4b 3.414 19RKA2S 5 GA CN - -- 0.119 _ 0.093 - - 0.059 0.044 _ 0.034 D.193 . __ 0.175 0.282 11 « 1 7: :� i i 0� -_- _ - - -- - -- 1013 117' 0.919 0.587 0.436 0.331 0.329 0.298 0.297 1 1J 25 LB BG _ -0.612 _ 0.480 _._. 0.307 _ ._- 0.51i - -._.- Ta -� 1553 - --- 1519 -� 1519 85 b L LUB EP 55 Ga oM - - ' --- --- - - - - ---- ------ PI ANNUr Pl UG FINE 50 LB BG _ CUBE 776 55 GA DM - -_ -__ 1598 .� -_ 2.073 _ _ 1324 - 0.982 - -__ 2.000 -� - 1987 .___. - 1798 __ - -_ 1798 .o ________ - _________r - ____ -__ ___ - °__. ._ .______ -_ _____.__. _.__.� -- Page 3 • • Mi SVVAC Cook Intel Natural, Gas CINGSA Well: Cannery Loop #4 j O Q y Y s A Schlumberger Company --' Kenai, Alaska MI SWAC ,. - A Schlumberger Company _ Product Concentration Operator: Contractor: Nabors Drilling Well Name: CLU Storage #4 M-1 Engineer: Brown/Faulkner Location: Kenai, Alaska Rig Name: Nabors 105E Field /Area: Cannery Loop /Kenai Stock Point: Product Products Concentrations (Ib /bbl) Name 21- Oct -11 22- Oct -11 23- Oct -11 ASPHASOL SUPREME 50 LB BG 1.567 1558 1546 LA U) I K: SODA 6018 BG 0S33 0.530 0.526 FLCWIS PLUS 25 LB BG _ KA YI'AC SU 1'( UL 50 LB BG 1393 1385 1.374 _._______'_ •__- °---.._. ___..____.___ -•----._ -_-° - 50LB BG - 12.306 15204 --- -- 13.611 ----- -_- -'--__.____-.-_-_____._-- 55 GA DM 0.18 0.114 0.113 fATWATE(BARITE) 50 LB BG 1.287 2.904 2.882 SODIUM 17ETi413buU-I l t- .. --___ 5 LB B G 0 .052 0.052 0.508 SAFE•CARB 10 50 LB BG SAFE -CARB 40 50 LB BG 2.859 2.843 2.821 SAFE•CARB 250 50 LB BG 2.333 2.321 2.303 SODA ASH 50 LB BG 0.024 0.024 0.023 KLA -GA RD 55 GA DM 0.424 0.422 0.419 50 LB BG 0.054 0.054 0.054 LitLtX b1:141 I VI XTI N K 2 LB BG _ ° - -.- - . - -. ° °- _ °_�_, el 1 KR: AGIL) 50 LB BG 0.752 0.748 0.742 CEDESCO1 25 LB BG --- 71T38111 -- - (Taff -.- °0.0 i- - -- _-.- - _ _.._. - °._ ________ Suuu 1 tiK AKBUh1A 1 t 50 LB BG _ ..___... - 0 . 308 0.306 0. • A3 55 GA DM .._ ...--- - 1 3 97 -- -- - - -___ 30 ._- - -- --- - ---- --- - -- - °------- ° ---- DEFOAll7LX - - - -- - -- - SGACN - -- --- - 0.80 0.159 --- - -- 0.88 MKTFINE 25 LB BG FAX II MEDIUM 25 LB BG - - 0225 0224 0222 - ____. __________ _- _______ _. NI StAL rlNt 40 LB BG IWTSFAL MtUIUM °-- - 451111 - 6 --------- __________ __ _.-- -- -_._.-_ ______________________ 50 LB BG ----- - 0.052 - - - °- "_ _.-.°_.- - .-- .-.-.- _-__- -_. 50 LB BG ---°----- BIOZAW_ _ - --- -- ° 50 LB BG - ° °--- - --- -- ---- ° -- -- ° --- --- -_- __ °_ --- -----'- -_�- IESIIVEX - 50 LB T3G 0.623 0.819 0.68 - - - - - - - - - - MI - --- -- - - -- - 25 LB 9G SAFE B 20--- - - -• - -- • so Ls BG '- - -- is90 - Vial 81 -- - - " .668 ' - - - - -- --- -- --------- -- --- ---- - " " - -- ___---_ ----- - 25 LB BG 1GA 2.09 2.068 2.052 NIYACIDE GA25 - - - 5 GA CN - -- - 0.711 ---- 0. - 171 -- I:423 ' ---- -- - -- - - - -- -- --- --- - - - --- SCREENKCEEN 1GA - - ---- 0181 -- -- - 0.180 - ------- FLUWLAN _.r_- .- -__ - -- 25 LB BG -- Me -� 0.920 - 0.913 '° __ -_ -. _e_ -_ -. __.__�__ - __._. -- -_-- STB3TUBEBr _ -_ -__- 55 GA pM -- -- - - OGFIRE - -- - - -- 50tH 8G -- --- LE776 -- 55 GA DM 1095 1089 1080 Page 4 CIFE • • MI SV1/Q .„ Cook Inlef Natural: Gas CI NGSA Well: Cannery Loop #4 STOAA ate. N. A Sc hiumberger Company Kenai, Alaska OWE V11 • V V/1 - 1-,11 L 1 VI S1 L L11 • V 1 \LI ■ A 1 S1 Date: 9/22/2011 Well Name il CLU Storage 4 BHA #: DSM Days: Steve Ratcliff Target Current Depth: 0 Location: Kenai, AK Depth: 65 Cell Phone: (907) 230 -9902 ig Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E N ig h t s: Days Since Spud 0 Present Rig Move Rig Phone: (907) 398 -3156 Cell Phone: Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS •D 1 #DIV/01 CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE Conductor: 1 . Welded N/A N' Intermediate 1 Liner Tubing = PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Dail Cumulative Gardner i PUMP MANF Denve PUMP MANF Gardner Denver WEIGHT GEL (50 Ib bag) i PUMP TYPE • • PUMP TYPE PZ -9 FUNNEL VIS S. ASH (50 lb bag) LINER SIZE • LINER SIZE 6 R600/R300 CAUSTIC STOKE • STOKE LNGTH 9 I I LOTORQ SPM SPM 0 ASPHASOL SUPREME 0.00 PV SOD ET GPM GPM 0 SODIUM IUM METABISULFITE PSI PSI 0 GELS FLOWZAN -- BTMS UP MIN O • • PAC • • TOT CIR MIN 0 CF -DESCO I I •' 0.00 SOLIDS MYACIDE GA25 • • '1.00 • SCREEENKLEEN • • • KLA -GARD DRILL STRING & HYDRAULICS PH POTASSIUM CHLORIDE STRING WT. •: SAFE -CARB 40 PICK UP 175 RPM - • • SODIUM BICARBONATE SLACK MAX PULL 1 75 HSP • 21 BARITE LIQUIDS •••• •-•• - SOLIDS (BBLS hauled by AIMM) DCOD API SCREEN Daily Mud Cum. II ACTIVITY SUMMARY E TIME SUMMARY Start Finish Hours Descri.tion Detail Dail Cumulative 0:00 i • 6.00 Rig down wind walls, prep for rig move off slot 3 RU /RD 6.00 Drilling Service /Re•air Rio Surveys Trips Cha�cn e BHA Casing Crew Cementing Crew Logging NU /ND Test DST /Core Well Control WOO P&A Safety Meetings _ Drilling Cement _ Ci rc/Other 6.00 TOTAL 6.00 BOTTOM HOLE ASSEMBLY QTY ITEM I 0.0. I.D. NECK CONN VENDOR HOURS BHA TOTAL LENGTH 0.00 0.00 0.00 REMARKS & COMMENTS DIESEL No Accidents or Near Misses. Diesel on Location 1,258 Diesel Used Last 24 148 Diesel Received 0 TOTAL DIESEL 1,110 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rio Crew 24 12.5 300 AIMM Vacuum Truck 4 12 48 PRA DSM 1 12 12 Baker Liner 0 24 0 PRA Safety 1 2 2 Weatherford Casing 0 24 0 PRA Geologist 1 0 0 Unique Machine 0 24 0 CINGSA Conrad /Rick 1 12 12 0 Baker MWD /Direct 0 0 0 0 CanRig Mud Logger 0 12 0 0 MI Swaco Mud 0 12 0 0 MI Swaco Dewatering 0 12 0 - _ TOTAL COUNT 32 TOTAL MAN HOURS 374 FROM TO _ LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 133# X -56 Welded Conductor Pipe CINGSA - DAILY DRILLING REPORT Date: 9/23/2011 Well Name • CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 0 Location: Kenai, AK Tar 465 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor Nabors Alaska -Rig 105 E fi Days Since Spud 0 Present Rig down and move to GS - Rig Phone: (907) 398 - 3156 Cell Phone: Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV /0! #DIV /0! CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD DEPTH CEMENT COMPANY DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: I Intermediate Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF _ Gardner Denver WEIGHT GEL (50 Ib bag) 0 PUMP TYPE PZ -9 PUMP TYPE PZ -9 FUNNEL VIS S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 CAUSTIC 0 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 LOTORQ 0 SPM SPM 0 R6 /R3 ASPHASOL SUPREME _ - 0 GPS GPS 0.00 PV CONQOR 404 0 GPM GPM 0 YP SODIUM METABISULFITE 0 PSI PSI 0 GELS FLOWZAN 0 BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS PAC 0 TOT CIR MIN TOT CIR MIN 0 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 Al v1M) 0 DCOD - JET VEL - API SCREEN Daily Mud Cum. 0 0 ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Description Detail - Dail Cumulative 6:00 9:00 3.00 R/D doghouse toolhouse , V -door and back side windwalls RU /RD 22.50 27.00 9:00 10:00 _ R/D hyd loop on back side of mast. Part mud lines in pump Drilling 10:00 1.00 room & pits Remove shaker unit from pits Service /Repair Rig 10:00 _ 10:30 0.50 R/D stand pipe and clear rig floor. R/D floor steam heaters Surveys 10:30 Pin top drive to carriage skid. Disconnect blocks F/ top drive Trips PJSM ; with crane crew. Remove top drive from rig floor Change BHA II 15:00 4.50 prep mast for scope down. Remove out side pits from rig. Casing Crew 15:00 Slip on drilling line,P /U scoping baskett, remove mud line Cementing Crew manfold from mast & rig floor. Pull dogs and lower mast Logging III section to rig floor. Spool up tugger lines. NU /ND Test Remove derrick board. Attach bridle line to blocks. Continue DST /Core _ 0:00 9.00 to rig down innerconnects between rig modules. Well Control 0:00 _ Scope down middle section of mast and lay down. Scope WOO _ 4:30 4.50 down top section of mast P &A 4:30 Secure tong,manrider and tugger lines. Hang blocks and Safety Meetings 1.50 3.00 6:00 1.50 prep lower section and crown for removal from rig floor Drilling Cement Circ /Other 24.00 TOTAL 24.00 30.00 BOTTOM HOLE ASSEMBLY QTY J ITEM O.D. I I.D. I NECK CONN I VENDOR LENGTH LENGTH (CUMULATIVE) I BHA HOURS BHA TOTAL LENGTH 0.00 0.00 0.00 REMARKS & COMMENTS DIESEL No Accidents or Near Misses. PJSM being held for all critical picks with crane crew. Diesel on Location 1,616 Diesel Used Last 24 138 Diesel Received 220 TOTAL DIESEL 1,698 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 0 PRA DSM 1 24 24 0 PRA Safety 1 2 2 0 PRA Geologist 0 0 0 _ 0 CINGSA Conrad /Rick 1 2 2 0 Peak Crane/ trucks 6 12 72 0 0 0 0 - TOTAL COUNT 33 TOTAL MAN HOURS 400 FROM TO LENGTH JOINT I DESCRIPTION G/L 97' 97' Welded 20" 133# X -56 Welded Conductor Pipe i VII V J/' VA - L,r%IL 1 L.11‘11-1-11‘L.11‘11-1L.11‘11-1-11‘1 L V 1 \III I \r I \1 Date: 9/24/2011 Well Name CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 0 Location: • Kenai, AK Tar 41/1165 Cell Phone: (907) 299 - 4306 Depth: ig Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska - Rig 105 E N ig h t s: Days Since Spud 0 Present Move to GS - Rig Phone: (907) 398 - 3156 Cell Phone: Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR #DIV /0! #DIV /0! CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE _ Conductor: 20" 133# X -56 Welded 97' N/A July Surface: Intermediate Production Liner PUMP #1 _ PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT GEL (50 Ib bag) 0 PUMP TYPE PZ -9 PUMP TYPE _ PZ -9 FUNNEL VIS S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 CAUSTIC 0 STOKE LNGTH 9 _ STOKE LNGTH 9 R200 /R 100 LOTORQ 0 SPM SPM 0 R6 /R3 ASPHASOL SUPREME 0 GPS GPS 0.00 PV CONQOR 404 0 GPM GPM _ 0 YP SODIUM METABISULFITE 0 PSI _ PSI 0 GELS FLOWZAN 0 BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS PAC 0 TOT CIR MIN TOT CIR MIN 0 CAKE APH /HT CF -DESCO II 0 AVDP: AVDP: _ 0.00 SOLIDS MYACIDE GA25 0 AVDC: AVDC: 0.00 OIUWATER 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) 0 DCOD - JET VEL - API SCREEN Daily Mud Cum. 0 0 ACTIVITY SUMMARY TIME SUMMARY Start Finish I Hours I Description Detail r Daily 7 Cumulative 6:00 Remove top mast section w/ crane, spool all drilling line off RU /RD 22.50 49.50 drawworks, Remove crown section off A legs. Cut drilling line Drilling 100' from drum.. Set crown section on cradle. Complete Service /Repair Rig R/D and move out of pits. Pull remaining electrical and Surveys control lines R/D and remove dog and tool houses from Trips rig floor. Move out water tank and change houses. Move out Change BHA generator, boilers, vfd and motor control center , stage Casing Crew around location. Move out matting boards and clean up liner Cementing Crew Move sub from center of CLU GC -3 well and stage on Logging location. Begin removing remaining matting boards from gs -3 NU /ND Test 6:00 24.00 and cleaning up liner /felt. Level pad area around GS -4 DST /Core Well Control Note: complete R/D and move off CLU GS -3 at 0430hrs WOO 9/24/2011 P &A Note: Installing new motor and generator during R/D Safety Meetings 1.50 4.50 Drilling Cement Circ /Other 24.00 TOTAL 24.00 54.00 BOTTOM HOLE ASSEMBLY QTY I ITEM O.D. f I.D. I NECK I CONN I VENDOR LENGTH I LENGTH (CUMULATIVE) I BHA HOURS BHA TOTAL LENGTH 0.00 0.00 0.00 REMARKS & COMMENTS DIESEL No Accidents or Near Misses. Continue to hold PJSM with crews , crane and truck on all phases of rig Diesel on Location 1,538 down processes. Crews doing outstanding job planing and holding safety meetings, this includes R/D Diesel Used Last 24 0 and move out of rig. Diesel Received 0 TOTAL DIESEL 1,538 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 - 0 PRA DSM 1 24 24 0 PRA Safety 1 2 2 0 PRA Geologist 0 0 0 0 CINGSA Conrad /Rick 1 1 1 0 Peak Crane/ trucks 6 12 72 0 Weaver Bros. Bed Truck 2 6 12 0 0 0 0 - TOTAL COUNT 35 TOTAL MAN HOURS 411 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 133# X -56 Welded Conductor Pipe CINGSA - DAILY DRILLING REPORT Date: 9/25/2011 Well Name . CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 0 Location: Kenai, AK Tar 465 Cell Phone: (907) 299 -4306 Depth: ig Ftg /24hrs. 0 Field/Pool: Cannery Loop / Sterling C conUactor: Nabors Alaska -Rig 105 E D hts: Days Since Spud 0 Present RIU on GS -4 Rig Phone: (907) 398 -3156 Cell Phone: Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR #DIV /0! #DIV /0! CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE Conductor: 20" 133# X -56 Welded 97' N/A July Surface: Intermediate Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: IMUD ADDITIVES: 1 Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT GEL (50 Ib bag) PUMP TYPE PZ -9 PUMP TYPE PZ -9 FUNNEL VIS S. ASH (50 Ib bag) LINER SIZE 6 LINER SIZE 6 R600 /R300 CAUSTIC STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 LOTORQ SPM SPM 0 R6 /R3 ASPHASOL SUPREME GPS GPS 0.00 PV CONQOR 404 GPM GPM 0 YP SODIUM METABISULFITE PSI PSI 0 GELS FLOWZAN BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS PAC TOT CIR MIN TOT CIR MIN 0 CAKE APH /HT CF -DESCO II AVDP. AVDP: 0.00 SOLIDS MYACIDE GA25 AVDC: AVDC: `!.00 OIL/WATER SCREEENKLEEN AVDC: AVDC: SAND KLA -GARD DRILL STRING & HYDRAULICS PH POTASSIUM CHLORIDE STRING WT. WOB - Pf /Mf SAFE -CARB 40 PICK UP RPM - CHLORIDES SODIUM BICARBONATE SLACK OFF TFA - CA BARITE MAX PULL HSP - VOL. PIT - (BBL) LIQUIDS DPOD PRESS DROP - HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) DCOD - JET VEL - API SCREEN Daily Mud Cum. ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description Detail 1 Daily 1 Cumulative 6:00 8:30 2.50 Level pad area ( main rig footprint.) Set felt and liner RU /RD 23.00 72.00 8:30 10:30 2.00 Set matting boards for sub Drilling 10:30 12:00 1.50 Move sub and set over center of well Service /Repair Rig 12:00 Set matts for pits, generators and water tanks. Crane up Surveys 14:00 2.00 crown section and drilling line unit to rig floor. Trips 14:00 R /U, set water tank and change houses. Crane up dog house Change BHA to rig floor. Set #2 water tank and inside pit modules. Set Casing Crew Koomey module. And inside pit units. Set up ods dog house Cementing Crew Install stairways from rig floor. Install charge pump module Logging and mud pumps units. Set breeze way and motor modules NU /ND Test 0:00 10.00 Run innerconnects between all rig modules. as units are set DST /Core 0:00 1:30 1.50 Set shaker module and #2 pit top module. Well Control 1:30 2:30 1.00 Start cold start engine generator, warm up and put on line WOO 2:30 4:30 2.00 Discovered diesel leak/ spill on filter pods. Clean up same P &A 4:30 Set centrifuge/ pump storage module and rig up. Continue Safety Meetings 1.00 6.00 6:00 1.50 to run innerconnects on rig modules Drilling Cement Circ /Other 24.00 TOTAL 24.00 78.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I O.D. 1 I.D. i NECK 1 CONN 1 VENDOR I LENGTH I LENGTH (CUMULATIVE) I BHA HOURS BHA TOTAL LENGTH 0.00 0.00 0.00 REMARKS & COMMENTS DIESEL Fuel spill occurred at 0330hrs ( main diesel filter pod cap o ring was pinched on installation) causing Diesel on Location 1,211 a 100 gallon fuel spill onto the matting boards, under the stand by generator. Spilled was limited to Diesel Used Last 24 327 the containment berm under the unit ( 15 gallons ) with the remaining diesel cleaned up with Diesel Received 0 absorb and placed in oily waste bags. TOTAL DIESEL 884 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 0 PRA DSM 1 24 24 0 PRA Safety 1 2 2 0 PRA Geologist 0 0 0 0 CINGSA Conrad /Rick 1 1 1 0 Peak Crane/ trucks 8 12 96 0 Weaver Bros. Bed Truck 2 8 16 0 0 0 0 - TOTAL COUNT 37 TOTAL MAN HOURS 439 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 133# X -56 Welded Conductor Pipe � INGSA - DAILY DRILLING REPOR Date: 9/26/2011 Well Name CLU Storage 4 BHA #: • DSM Days: John Nicholson Current Depth: 0 Location: Kenai, AK Tar 2465 Cell Phone: (907) 299 -4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C contractor: Nabors Alaska -Rig 105 E N Dq M Days Since Spud 0 Present R/U on GS -4 Rig Phone: (907) 398 -3156 Cell Phone: Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR #DIV /0! #DIV /0! CASING 1 SIZE 1 WEIGHT GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY ( DATE 1 Conductor: 20" 13311 X -56 Welded 97' N/A July Surface: Intermediate Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT GEL (50 Ib bag) PUMP TYPE PZ -9 PUMP TYPE PZ -9 FUNNEL VIS S. ASH (50 Ib bag) LINER SIZE 6 LINER SIZE 6 R600 /R300 CAUSTIC STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 LOTORQ SPM SPM 0 R6 /R3 ASPHASOL SUPREME GPS GPS 0.00 PV CONQOR 404 GPM GPM 0 YP SODIUM METABISULFITE PSI PSI 0 GELS FLOWZAN BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS PAC TOT CIR MIN TOT CIR MIN 0 CAKE APH /HT CF -DESCO II AVDP: AVDP: SOLIDS MYACIDE GA25 AVDC: AVDC: OIL/WATER SCREEENKLEEN AVDC: AVDC: SAND KLA -GARD DRILL STRING & HYDRAULICS PH POTASSIUM CHLORIDE STRING WT. WOB - Pf /Mf SAFE -CARB 40 PICK UP RPM - CHLORIDES SODIUM BICARBONATE _ SLACK OFF TFA - CA BARITE MAX PULL HSP - VOL. PIT - (BBL) LIQUIDS DPOD PRESS DROP - HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) - DCOD - JET VEL - API SCREEN Daily Mud Cum. ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Descri.tion Detail Dail Cumulative 6:00 R/U on CLU -4. Set choke/ gas buster unit R/U flow line F/ ' 23.00 95.00 _ 8:00 2.00 seperator to shakers _ 8:00 R/U hyd system in sub. P/U crown and set on A legs. Service /Re.air RI. 12:00 4.00 and string up to draworks, R/U trolly F/ bops Surve s — 12:00 13:00 1.50 Rig up tugger lines, run and nipple up lines in pits. Tri.s 13:00 15:00 2.00 Spool up drilling line on draworks Change BHA 15:00 23:30 8.00 R/U and set mast sections, install board on mast Casin. Crew _ 23:30 0:00 0.50 Remove bridal line and yoke from blocks Cementing Crew 0:00 Install annuluar and diverter spool. (4 Bolts) Install top Logging 3:00 3.00 Drive in mast and pin to blocks. NU /ND Test 3:00 6:00 3.00 Install wind wall frount of sub. Set kelly hose and stand pipe DST /Core _ on rig floor. Continue with innerconnects in pits and rig. Well Control WOO P &A — Safet Meetin.s 1.00 7.00 Drilling Cement Circ /Other 24.00 TOTAL 24.00 102.00 BOTTOM HOLE ASSEMBLY _ QTY O.D. I.D. NECK CONN VENDOR LENGTH LENGTH (CUMULATIVE) BHA HOURS BHA TOTAL LENGTH 0.00 0.00 0.00 REMARKS & COMMENTS DIESEL No accidents or near misses. No s. ills Crews and su. .ort .ersonal holdins safet meetin.s dicussin. Diesel on Location 1,211 an hazzards involved with ris us and o.erations. Diesel Used Last 24 198 Diesel Received — TOTAL DIESEL 1,013 I PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 0 PRA DSM 1 24 24 0 PRA Safety 1 2 2 - 0 PRA Geologist 0 0 0 0 CINGSA Conrad /Rick 1 1 1 0 Peak Crane/ trucks 8 12 96 _ 0 — 0 0 0 0 0 - TOTAL COUNT 35 TOTAL MAN HOURS 423 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 1334 X -56 Welded Conductor Pipe � INGSA - DAILY DRILLING REPORo Date: 9/27/2011 Well Name CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 0 Location: Kenai, AK Tar 2465 Cell Phone: (907) 299 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Connector: Nabors Alaska -Rig 105 E Dq M Days Since Spud 0 Present Nipple up Diverter. Test pits Rig Phone: (907) 398 -3156 Cell Phone: Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR #DIV /0! #DIV /0! CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE - Conductor' 20" 133# _ X -56 Welded 97' N/A July Surface: Intermediate Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT GEL (50 Ib bag) PUMP TYPE PZ -9 PUMP TYPE PZ -9 FUNNEL VIS S. ASH (50 Ib bag) LINER SIZE 6 LINER SIZE 6 R600/R300 CAUSTIC STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 LOTORQ SPM - SPM _ 0 R6 /R3 ASPHASOL SUPREME GPS GPS 0.00 PV _ CONQOR 404 _ GPM GPM 0 YP SODIU M METABISULFITE PSI PSI _ 0 GELS FLOWZAN BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS PAC _ TOT CIR MIN TOT CIR MIN 0 CAKE APH /HT CF -DESCO II AVDP: AVDP: _ 0.00 SOLIDS MYACIDE GA25 AVDC: _ AVDC: 0.00 OIL/WATER _ SCREEENKLEEN AVDC: AVDC 0 0 0 SAND KLA-GARD DRILL STRING & HYDRAULICS PH POTASSIUM CHLORIDE STRING WT. WOB - Pf /Mf SAFE -CARB 40 PICK UP RPM - CHLORIDES SODIUM BICARBONATE SLACK OFF _ TFA _ - _CA BARITE MAX PULL HSP VOL. PIT - (BBL) LIQUIDS DPOD PRESS DROP - HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) DCOD - JET VEL - API SCREEN Daily Mud Cum. ACTIVITY SUMMARY r TIME SUMMARY Start Finish Hours Description retail Dail Cumulative 6:00 _ R /U. Set berm around V -door, R/U stand pipe and manifold RU /RD 16.50 11115.00 Set mats for pipe shed Install TD service loop on backside Drilling 9:00 _ 3.00 of derrick. Service /Repair Rig 9:00 1 Fold out and pin wind walls around rig floor, install 4" drain Surveys valves on 20 conductor. Install turnbuckles on wind walls Trips Set #2 fuel tank Set pipe shed catwalk unit. Run service Change BHA 12:00 _ 3.00 lines steam water and air on rig. Casing Crew l 12:00 _ Continue setting remaining pipe shed modules. Install Cementing Crew main top drive service loop. Spot and set cement silos Logging and cement unit. Begin taking on H2o 300bbIs in water NU /ND Test 6.00 6.00 18:00 6.00 tank. Rig up canrig pvt / rig watch system. DST /Core _ 18:00 19:30 1.50 Cut Drilling line slip 156' on drum, run power to pipe shed Well Control 19:30 Rig up service loop to top drive, complete pump room Hi WOO _ 0:00 4.50 and low pressure line connections. Install kill line hose P &A 0:00 0:00 Accept rig from demob /mob. to operating. Rig move 5 days Safety Meetings 1.00 5.00 0:00 6:00 6.00 Begin N/U diverter. Test lines in pits. Rig up service units Drilling Cement - _ _ 8-tart to ng drillpipe in pipe shed. Circ /Other 24.00 TOTAL 23.50 126.00 BOTTOM HOLE ASSEMBLY QTY ITEM O.D. I I.D. NECK CONN 1 VENDOR I LENGTH LENGTH (CUMULATIVE) BHA HOURS BHA TOTAL LENGTH 0.00 0.00 0.00 REMARKS & COMMENTS DIESEL No accidents near misses or spills. Note; Called AOGCC Jim Regg, gave notice of Diverter function test Diesel on Location _ 725 9/26/11 16:15hrs. Crane and trucking crews released at 17:00hrs 9/26/11 _ Diesel Used Last 24 121 Diesel Received 6,711 TOTAL DIESEL 7,315 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 _ 12.5 300 S/R Pump septic 1 1 1 PRA _ DSM _ 1 24 24 National oilwell Deliver pipe 1 4 4 PRA Safety 1 _ 2 2 0 PRA Geologist 0 0 0 0 CINGSA Conrad /Rick 1 1 1 0 Peak Crane/ trucks 6 12 72 0 Mi swaco Mud Eng. 1 4 4 0 Canrig r/u pvt rig watch 1 6 6 0 0 - TOTAL COUNT 37 TOTAL MAN HOURS 414 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 133# X -56 Welded Conductor Pipe CINGSA - DAILY DRILLING REPORT Date: 9/28/2011 Well Name . CLU Storage 4 BHA #: • DSM Days: John Nicholson Current Depth: 0 Location: Kenai, AK Tar 2465 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska - Rig 105 E DSM Days Since Spud 0 Present P/U Drill pipe Rig Phone: (907) 398 - 3156 Cell Phone: Operation: _ DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR #DI V /0! #DIV/0! CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE Conductor: 20" _ 1334 X -56 Welded 97' N/A July Surface: Intermediate Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.3 GEL (50 Ib bag) PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 49 S. ASH (50 lb bag) LINER SIZE 6 LINER SIZE 6 R600/R300 48/32 CAUSTIC STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 24/17 LOTORQ SPM SPM 0 R6 /R3 4/3 ASPHASOL SUPREME GPS GPS 0.00 PV 16 CONQOR 404 GPM GPM 0 YP 16 SODIUM METABISULFITE PSI PSI 0 GELS 4/8/ FLOWZAN _ BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS 7.2 PAC TOT CIR MIN TOT CIR MIN 0 CAKE APH /HT 1/ CF -DESCO II _ AVDP: AVDP: SOLIDS 5.5 MYACIDE GA25 — 3 AVDC: AVDC: OIL/WATER 1/94 SCREEENKLEEN AVDC: AVDC: SAND 0.1 KLA -GARD DRILL STRING & HYDRAULICS PH 10.3 POTASSIUM CHLORIDE STRING WT. WOB - Pf /Mf .30/3.40 SAFE -GARB 40 PICK UP RPM - CHLORIDES 13000 SODIUM BICARBONATE SLACK OFF TFA - CA 160 BARITE MAX PULL HSP - VOL. PIT -(BBL) 522 LIQUIDS DPOD PRESS DROP - HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) DCOD - JET VEL - API SCREEN 1x105 3x165 Daily Mud Cum. ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description 'Detail 1 Daily 1 Cumulative 6:00 Nipple up Diverter, install and torque studs on annular RU /RD 16.00 115.00 Spool & knife valve. Run accumulator lines to knife valve & Drilling 20" bag. Take on H2O for pits for testing low pressure lines. Service /Repair Rig 1.00 Flow test all low pressure lines in pit system. Install shaker Surveys screens 1X 100 and 3X 165. Load and strap 5' drill pipe in Trips 7.00 12.00 12:00 6.00 pipe shed. Change BHA 12:00 Nipple up Diverter, install flow riser and M/U Hang cement Casing Crew line run wires for camera, hang floor tongs C/O 2" valve on Cementing Crew 18:30 mud pump. Start mixing spud mud Logging 18:30 0:00 5.50 P/U drift 5" drill pipe and stand back 125jts NU /ND Test 6.00 0:00 R/U Cement & stand pipe bleeder lines. Adjust kelly hose DST /Core 3:30 3.50 goose neck. Load pipe shed with 33jts Dp and 23jts HWDP Well Control 3:30 4:30 1.00 Test all Hi pressure mud lines to 2800psi WOO 4:30 6:00 1.50 Continue to P/U drillpipe P &A Safety Meetings 5.00 Drilling Cement Circ /Other 17.50 TOTAL 24.00 138.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 O.D. 1 I.D. 1 NECK 1 CONN 1 VENDOR 1 LENGTH 1 LENGTH (CUMULATIVE) 1 BHA HOURS BHA TOTAL LENGTH 0.00 0.00 0.00 REMARKS & COMMENTS DIESEL Diesel on Location 6,788 Diesel Used Last 24 486 Diesel Received 0 TOTAL DIESEL 6,302 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Aimm Vac truck 1 12 12 PRA DSM 1 24 24 BHI MWD 2 , 12 24 PRA Safety 1 2 2 Academy Elect. 1 12 12 PRA Geologist 0 0 0 Aimm Rst 2 2.5 5 CINGSA Conrad /Rick 0 0 0 0 BHI Directional 2 12 24 0 Mi swaco Mud Eng. 2 12 24 0 Canrig r/u pvt rig watch 1 6 6 0 Mi swaco De water 2 12 24 - TOTAL COUNT 37 TOTAL MAN HOURS 457 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 1334 X -56 Welded Conductor Pipe CINGSA - DAILY DRILLING REPORT Date: 9/29/2011 Well Name 0 CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 1077' Location: Kenai, AK Tar 2465 Cell Phone: (907) 299 - 4306 Depth: ig Ftg /24hrs. 959' Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E Nights: John Nicholson Days Since Spud 1 Present Drill ahead At 1077'md. 1052'tvd Rig Phone: (907) 398 -3156 Cell Phone: 907 - 299 -4306 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 118' #DIV /0! #DIV /0! CASING j SIZE 1 WEIGHT GRADE 1 THREAD DEPTH 1 CEMENT COMPANY DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: Intermediate Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT J 9.2 JGEL (50 Ib bag) 105 105.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 80 S. ASH (50 Ib bag) LINER SIZE 6 LINER SIZE 6 R600 /R300 48/40 CAUSTIC STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 32/23 LOTORQ SPM 85 SPM 85 R6 /R3 8/7 ASPHASOL SUPREME GPS 3.17 GPS 3.17 PV 8 CONQOR 404 GPM 271 _ GPM 271 YP 32 SODIUM METABISULFITE PSI _ 1450 PSI 1450 GELS 8/13/15 FLOWZAN _ 3 3 BTMS UP MIN 20 BTMS UP MIN 20 API FLUID LOSS 10 PAC TOT CIR MIN 80 TOT CIR MIN 80 CAKE APH /HT 1/ CF -DESCO II _ AVDP: AVDP: 143.00 SOLIDS 6.5 MYACIDE GA25 _ AVDC: AVDC: 0.00 OIL/WATER 2/91.5 SCREEENKLEEN AVDC: AVDC: 0.00 SAND 0.9 KLA -GARD DRILL STRING & HYDRAULICS PH 10 POTASSIUM CHLORIDE STRING WT. 63k WOB _ Pf /Mf 0.2/1.8 SAFE -CARB 40 _ PICKUP 64k RPM 60 65 CHLORIDES 11000 SODIUM BICARBONATE _ SLACK OFF 62k TFA 0.942 CA _ 200 BARITE MAX PULL 63k HSP 168 VOL. PIT - (BBL) 522 LIQUIDS DPOD PRESS DROP 6 HOLE - (BBL) 158 SOLIDS (BBLS hauled by AIMM) 115.47 115.47 DCOD - JET VEL 41/0.2 API SCREEN 1x105 3x165 Daily Mud Cum. ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Description Detail Dai Cumulative 6:00 8:00 2.00 P/U drift and stand back 33jts 5" drill pipe RU/RD 6.00 137.00 8:00 10:00 2.00 P/U drift and stand back 23jts 5" HWDP and Jars Drilling 8.50 10:00 Function test diverter system with Jeff Jones AOGCC as Service/Repair ' • witness. Knife valve opened in 22sec annular closed in Surveys 11:00 1.00 60sec. Accumulator test, total recovery in 40sec. Test flow Trips 7.00 19.00 11:00 1.00 pvt and gas alarms all passed. Change BHA 11:00 12:00 1.00 P/U 3 -8" monel collars and stand back. Casin Crew 12:00 12:30 0.50 Crew change out, hold safety meeting for spud of well Cementing Crew 12:30 Make up 16" surface hole section BHA. P/ U 1.3 ako motor Logging 14:30 2.00 16" bit, 15 7/8 stab., Pony DC and Mwd. Scribe MWD. NU/ND Test 2.50 8.50 14:30 15:30 Break circulation, monitor all mud lines for leaks, spud 15:30 CLU -4 15:30hrs Sept 28, 2011. Directional dr116" s� urfface Well Control Up wt.50k S/O wt.47k Ih. Wt. 48k Tq. 4k 60rpm 2 -8 wob WOO 0:00 8.50 140spm 1100psi 455gpm. No G/L .AST =1.4 ART =1.8 P &A 0:00 Directional drl 16" surface hole F/ 635'- 1077' Up wt.64k Safety Meetings 5.00 Dn wt.62k Rt. Wt.63kTq.2 -3.5 rpm 60. wob 4 -10k 170 spm Drilling Cement 6:00 6.00 gpm.540 = 1450psi no G/L AST =2.6 ART= 1.4 ADT= 4 Circ /Other 24.00 TOTAL 24.00 169.50 BOTTOM HOLE ASSEMBLY QTY ITEM _1 O.D. I.D. _J NECK j CONN VENDOR LENGTH J LENGTH (CUNIULATIVE) BHA HOURS - 2 Motor steerable 1.3deg 8 1.80 6 5 /8reg BH 28.63 28.63 3 NM Pony Collar 8 1/16 2 13/16 1.78 6 5/8 H -90 BHI 9.57 39.50 4 NM stab 8 1/8 2 13/16 2.25 6 5/8 H -90 BHI _ 4.82 44.32 5 MWD/ Gamma 8 2 13/16 6 5/8 H -90 BHI 32.77 77.09 6 CSNMDP 7 11/16 2 7/8 3.27 6 5/8 H -90 BHI 29.77 106.36 7 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 135.98 8 CSNMDP 7 3/4 2 3/4 1.88 6 5/8 H -90 BHI 29.98 165.96 9 X- Over 7 7/8 7 7/8 41/2 IF BHI 1.60 167.56 10 4x HWDP 5 3 4 1/21F BHI 118.57 286.13 11 Jars 6 1/8 211/16 41/2 IF BHI 31.72 319.02 12 19x 5 3 41/2 IF BHI 567.83 885.68 BHA TOTAL LENGTH 884.88 885.68 0.00 REMARKS & COMMENTS DIESEL PJSM, No accidents or spills. _ Diesel on Location 6,302 Note : Attempted to drift 13 3/8 casing with 12.259drift 19 out of 28 jts drift would not pass L -80 btc mod Diesel Used Last 24 493 collars. Diesel Received 0 TOTAL DIESEL 5,809 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Aimm Vac truck 3 12 36 PRA DSM 1 24 24 BHI MWD 2 12 24 PRA Safety 1 2 2 Academy Elect. 1 12 12 PRA Geologist 0 0 0 Aimm Rst 3 2.5 7.5 CINGSA Conrad /Rick 0 0 0 Canrig Mud loggers 2 12 24 BHI Directional 2 _ 12 24 0 Mi swaco Mud Eng. 2 12 24 0 Canrig r/u pvt rig watch 1 6 6 0 Mi swaco De water 2 12 24 - TOTAL COUNT 42 TOTAL MAN HOURS 507.5 CINGSA - DAILY DRILLING REPORT Date: 9/30/2011 Well Name • CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 2482' Location: Kenai, AK Tar 2465 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field/Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E DSM , Jhn Nicholson Days Since Spud 2 Present Circulate and condition mud @ 2482' Rig Phone: (907) 398 -3156 Cell Phone: 907 - 299 -4306 Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 1 16" HCC VM -1 5198829 3x181x16 118' 2480 2362 15.5 152.39 #DIV /0! - CASING 1 SIZE ( WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE Conductor: 20" 133# X -56 Welded 97' N/A July Surface: Intermediate Production Liner PUMP #1 IPUMP #2 IMUD PROPERTIES: IMUD ADDITIVES: 1 Daily 1Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.4 GEL (50 Ib bag) 19 124.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 55 S. ASH (50 Ib bag) LINER SIZE 6 LINER SIZE 6 R600 /R300 49/33 CAUSTIC STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 27/19 LOTORQ SPM 90 SPM 90 R6 /R3 11/10 ASPHASOL SUPREME GPS GPS PV 16 CONQOR 404 GPM 300 GPM 300 YP 17 SODIUM METABISULFITE PSI 1850 PSI 1850 GELS 14/26/28 FLOWZAN 12 15 BTMS UP MIN 47 BTMS UP MIN 47 API FLUID LOSS 8.2 PAC TOT CIR MIN 78.6 TOT CIR MIN 78.6 CAKE APH /HT 1/ CF -DESCO II AVDP: 52.20 AVDP: 52.20 SOLIDS 7.5 MYACIDE GA25 AVDC: 61.80 AVDC: 61.80 OIL/WATER 1/92 SCREEENKLEEN AVDC: 61.80 AvoC • 61.80 SAND 0.5 KLA - GARD DRILL STRING & HYDRAULICS PH 9.3 POTASSIUM CHLORIDE STRING WT. 74 WOB Pf /Mf .15/2.00 SAFE -CARB 40 PICK UP 85 RPM 80 120 CHLORIDES 7000 SODIUM BICARBONATE - SLACK OFF 60 TFA 0.942 CA 600 BARITE MAX PULL 75 HSP 93 VOL. PIT - (BBL) 386 LIQUIDS DPOD PRESS DROP 290 HOLE - (BBL) 647 SOLIDS (BBLS hauled by AIMM) 814 911 DCOD - JET VEL 186 API SCREEN 1x105 3x165 Daily Mud Cum. ACTIVITY SUMMARY 1 TIME SUMMARY Start I Finish I Hours 1 Description 'Detail 1 Daily 1 Cumulative ' 6:00 Directional drl 16" surface hole F/ 1077 -' 1640' Up wt. 75k RU /RD 137.00 Dn wt.63k Rt wt.70k Tq.2 -3.5 rpm 80. wob 4 -10k 600gpm Drilling 15.00 23.50 1750psi no G/L AST= 2 ART= 1.3 ADT= 4 Service /Repair Rig 0.50 0.50 12:00 6.00 Pump Sweeps to maintain hole cleaning Surveys 12:00 Directional drl 16" surface hole F/ 1640' -2220' Up wt 80k Trips 5.00 24.00 Dn wt.65k Rt wt.72k Tq.2 -3.5 rpm 80. wob 4 -10k 600gpm Change BHA 1750psi no G/L AST =2.1 ART =1 ADT= Casing Crew 18:00 6.00 continue pumping sweeps to maintain hole cleaning Cementing Crew 18:00 0:00 Directional dr! 16" surface hole F/ 2220' -2480' Logging 2480 T/D of surface section as per casing tally NU /ND Test 8.50 Up wt.85k. Dn. Wt. 60 k. Rot. Wt. 74k Tq. 4 -6k Rot. 80 DST /Core 21:00 3.00 wob 10k. 580gpm 1850psi . AST =1.5 Art= .3 Well Control 21:00 22:30 1.50 Circulate and condition mud at 2480' 600gpm 1950psi WOO 22:30 2:00 3.50 Monitor well POH ( wiper trip to 800' ) Hole slick No g/I P &A 2:00 2:30 0.50 Service Rig Safety Meetings 5.00 2:30 4:00 1.50 RIH to 2480 W/O problems. Tag bottom 2' of fill Drilling Cement 4:00 6:00 2.00 Circ condition mud 500gpm 1350psi Pump carbide bomb Circ /Other 3.50 3.50 24.00 Fluid caliper. Pump sweep Circ until Shakers Clean up TOTAL 24.00 202.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 O.D. 1 I.D. 1 NECK 1 CONN 1 VENDOR I LENGTH 1 LENGTH (CUMULATIVE) ] BHA HOURS 2 Motor steerable 1.3deg 8 1.80 6 5 /8reg BHI 28.63 28.63 3 NM Pony Collar 8 1/16 2 13/16 1.78 6 5/8 H -90 BHI 9.57 39.50 4 NM stab 8 1/8 2 13/16 2.25 6 5/8 H -90 BHI 4.82 44.32 5 MWD/ Gamma 8 2 13/16 6 5/8 H -90 BHI 32.77 77.09 6 CSNMDP 7 11/16 2 7/8 3.27 6 5/8 H -90 BHI 29.77 106.36 7 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 135.98 8 CSNMDP 7 3/4 2 3/4 1.88 6 5/8 H -90 BHI 29.98 165.96 9 X- Over 7 7/8 7 7/8 41/2 IF BHI 1.60 167.56 10 4x HWDP 5 3 4 1/2 IF BHI 118.57 286.13 11 Jars 6 1/8 s 211/16 41/2IF BHI 31.72 319.02 12 19x 5 3 4 1/2 IF BHI 567.83 885.68 BHA TOTAL LENGTH 884.88 885.68 _ 0.00 REMARKS & COMMENTS DIESEL PJSM, No accidents or spills. No problems on wiper trip hole in good condition. We plan on starting out Diesel on Location 5,709 of the hole to run Casing at 0600hrs. Diesel Used Last 24 1,115 Diesel Received 0 TOTAL DIESEL 4,594 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Aimm Vac truck 3 12 36 PRA DSM 1 24 24 BHI MWD 2 12 24 PRA Safety 1 2 2 Academy Elect. 1 12 12 PRA Geologist 0 0 0 Aimm Rst 3 2.5 7.5 CINGSA Conrad /Rick 0 0 0 Canrig Mud loggers _ 2 12 24 BHI Directional 2 12 24 Schlumberger R/U cmt unit 3 8 24 Mi swaco Mud Eng. 2 12 24 0 Canrig r/u pvt rig watch 1 6 6 0 Mi swaco De water 2 12 24 - TOTAL COUNT 45 TOTAL MAN HOURS 531.5 OINGSA - DAILY DRILLING REPORT Date: 10/1/2011 Well Name CLU Storage 4 BHA #: 1 DSM Days: John Nicholson Current Depth: 2482' Location: Kenai, AK Tar 2465 Cell Phone: (907) 299 -4306 Depth: Ftg/24hrs. 0 Field /Pool: Cannery Loop / Sterling C contractor: Nabors Alaska -Rig 105 E DSM John Nicholson Days Since Spud 3 Present Circulate and condition mud @ 2426' Rig Phone: (907) 398 -3156 Cell Phone: 907 - 299 -4306 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 118' 2480 2362 , - 1- 0-ae- 1-n-td 15.5 152.39 #D I V /0! CASING 1 SIZE 1 WEIGHT GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: _ 13.375 60 _ J -55 _ BTC mod 2470' Intermediate Production Liner PUMP #1 IPUMP #2 IMUD PROPERTIES: IMUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver 'WEIGHT GEL (50 Ib bag) 19 124.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS S. ASH (50 Ib bag) LINER SIZE _ 6 LINER SIZE 6 R600 /R300 CAUSTIC STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 LOTORQ SPM SPM R6/R3 _ ASPHASOL SUPREME _ GPS GPS PV _ CONQOR 404 GPM GPM YP SODIUM METABISULFITE PSI PSI GELS FLOWZAN 12 15 BTMS UP MIN BTMS UP MIN API FLUID LOSS PAC TOT CIR MIN TOT CIR MIN CAKE APH /HT CF -DESCO II AVDP: 52.20 AVDP: 52.20 SOLIDS MYACIDE GA25 AVDC: 61.80 AVDC: 61.80 OIUWATER _ SCREEENKLEEN AVDC: AVDC: SAND KLA -GARD DRILL STRING & HYDRAULICS PH POTASSIUM CHLORIDE STRING WT. 74 WOB Pf /Mf SAFE -CARB 40 PICK UP 85 RPM 80 120 CHLORIDES SODIUM BICARBONATE SLACK OFF _ 60 _ TFA 0.942 CA BARITE MAX PULL 75 HSP 93 VOL. PIT - (BBL) 386 LIQUIDS DPOD PRESS DROP 290 HOLE - (BBL) 647 SOLIDS (BBLS hauled by AIMM) 86 998 DCOD - JET VEL 186 API SCREEN 1x105 3x165 Daily Mud Cum. ACTIVITY SUMMARY TIME SUMMARY Start I Finish 1 Hours I Description Detail Daily 1 Cumulative 6:00 6:30 0.50 Monitor well, Pump dry job RU /RD 137.00 POH to run casing F/ 2482' - 884' Stand back HWDP and Drilling 23.50 Jars. Lay down Pony collar, stablizer. P/U and break out Service /Repair Rig 0.50 12:00 5.50 Bit, lay down MWD and motor Surveys 12:00 12:30 0.50 Clean clear rig floor Trips 17.00 41.00 12:30 14:30 2.00 Rig up to run 13 3/8 casing Change BHA 5.50 5.50 14:30 Run 13 3/8 casing. P/U shoe and float collar joint, Baker loc Casing Crew same. Fill jts and check floats. Ok. Run 61 jts 13 3/8 J -55 Cementing Crew BTCM casing with L -80 couplings and 28 centrailzers to Logging 0:30 10.00 2470'. Hole tight F/ 1750 -2374' 2374 -2470' hole slick NU /ND Test 8.50 0:30 2:30 2.00 Rig down Casing tools R/U false rotary for inner strino DST /Core 2:30 RIH with drill pipe & stinger to top of float collar at 2426 ' Well Control 4:30 2.00 sting into float collar. WOO 4:30 6:00 1.50 R/U pump in sub and cement line. Break circulation at P &A 1.5bbls min. Circulate B/U . Rig up cementers. Safety Meetings 5.00 Drilling Cement Circ /Other 1.50 5.00 24.00 TOTAL 24.00 226.00 BOTTOM HOLE ASSEMBLY QTY I ITEM 1 O.D. I I.D. I NECK I CONN 1 VENDOR I LENGTH I LENGTH (CUMULATIVE) I BHA HOURS I BHA TOTAL LENGTH 0.00 0.00 REMARKS & COMMENTS DIESEL PJSM, No accidents or spills. Work casing through tight hole due to clays F/ 1750 -2374' Diesel on Location 4,594 _ Diesel Used Last 24 _ 834 _ Diesel Received _ 2,000 TOTAL DIESEL 5,760 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Aimm Vac truck 3 12 36 PRA _ DSM 1 24 24 BHI _ MWD 2 12 24 PRA Safety 1 2 2 Academy Elect. 1 12 12 . PRA Geologist 0 0 0 0 CINGSA Conrad /Rick 0 0 0 Canrig Mud loggers 2 12 24 BHI Directional 2 12 24 Schlumberger R/U cmt unit 3 8 24 Mi swaco Mud Eng. 2 12 _ 24 Weatheford Casing Crew 2 12 24 0 0 Mi swaco De water 2 12 24 - TOTAL COUNT 43 TOTAL MAN HOURS 542 CINGSA - DAILY DRILLING REPORT Date: 10/2/2011 Well Name • CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 2482' Location: Kenai, AK Tar 465 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E N DS John Nicholson Days Since Spud 4 Present Nipple up 13 5/8 5000 BOPE Rig Phone: (907) 398 -3156 Cell Phone: 907 - 299 -4306 Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /FIR 1 16" HCC VM -1 5198829 _ 3x18 1x16 118' 2480 2362 1 1 w ----0 15.5 152.39 _ #DIV/0! CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH CEMENT COMPANY DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375 60 J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate Production Liner PUMP #1 "PUMP #2 IMUD PROPERTIES: IMUD ADDITIVES: " Daily "Cumulative PUMP MANF Gardner Denver PUMP MANF 1 Gardner Denver WEIGHT 'GEL (50 lb bag) 19 124.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS S. ASH (50 Ib bag) LINER SIZE 6 LINER SIZE 6 R600 /R300 CAUSTIC STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 LOTORQ SPM SPM R6 /R3 ASPHASOL SUPREME GPS GPS PV CONQOR 404 GPM GPM YP SODIUM METABISULFITE PSI PSI GELS _ FLOWZAN 12 15 BTMS UP MIN BTMS UP MIN API FLUID LOSS PAC TOT CIR MIN TOT CIR MIN CAKE APH /HT CF -DESCO II AVDP: AVDP: SOLIDS MYACIDE GA25 AVDC: AVDC: OIL/WATER SCREEENKLEEN AVDC: AVDC: SAND KLA -GARD DRILL STRING & HYDRAULICS PH POTASSIUM CHLORIDE STRING WT. 74 WOB Pf /Mf SAFE -CARB 40 PICK UP 85 RPM 80 120 CHLORIDES SODIUM BICARBONATE SLACK OFF _ 60 TFA 0.942 CA BARITE MAX PULL 75 HSP 93 VOL. PIT - (BBL) 386 LIQUIDS DPOD _ PRESS DROP 290 HOLE - (BBL) 647 SOLIDS (BBLS hauled by AIMM) 528 1526 DCOD - JET VEL 186 API SCREEN 1x200 3x165 Daily Mud Cum. ACTIVITY SUMMARY TIME TIME SUMMARY Start Finish Hours Descri.tion Detail Daily Cumulative _ 6:00 Stage circulate 13 3/8 casing at 2470' 1.5bblmin. 425psi to RU /RD 137.00 8:00 2.00 5bbl per min 390psi no losses. Circ 1.5x btms up Drilling 23.50 - 8:00 PJSM : Cement 13 3/8 Casing. Pump 5bbls H2o test lines Service /Repair Rig 0.50 3000psi ok.Line up Rig, pump 35bbls mud push. Switch to Surveys cmts. Pump 5b H2o followed by 188bb1s 12.2 class Cmt. Ts _ 41.00 Diverted cement to cellar at 188bbIs pumped. Pump 70.5 Change BHA 11.00 _ 15.5 class A tail cement, continue to divert cmt flow to cellar Casing _ 2.00 2.00 Pump 5bbls H2o switch to rig pumps and displace drill pipe Cementing 4.00 4.00 with 32 bbls 9.4 mud. CIP at 11:25hrs Oct 1, 2011. Unsting Logging _ 12:00 4.00 Collar. Check floats, Floats held. 100% returns no losses NU /ND Test 11.50 20.00 12:00 _ Break connection and drop wiper dart, circ casing volume DST /Core 14:30 2.50 ,on bttms up did not see any cement inside 13 3/8 csg. Well Control 14:30 15:30 1.00 Flush out stack and lines. R/D flow nipple N/U false rotary WOO _ _ 15:30 18:30 3.00 POH W/ innerstring RID false rotary & tools P &A 18:30 N/D Diverter system Make ruff cut on 13 3/8 csg Remove Safety Meetings 5.00 Starting head Make final cut on 20" and 13 3/8 Casing Drilling Cement 6:00 11.50 Install FMC 13 5/8 5000 C -22 EG slip lock well head. test Circ /Other 6.50 5.00 24.00 to 5000psi Ok. Nipple up 13 5/8 BOP stack TOTAL 24.00 249.00 BOTTOM HOLE ASSEMBLY QTY ITEM I O.D. I.D. NECK I CONN I VENDOR I LENGTH LENGTH (CUMULATIVE) BHA HOURS BHA TOTAL LENGTH 0.00 0.00 _ REMARKS & COMMENTS _ DIESEL PJSM, No accidents or spills. Called AOGCC reguarding BOP test. Witness waved By Lou Grimaldi Diesel on Location 5,760 AOGCC 2100hrs 10 -1 -11. Noted firm cement after making final cut on 20" conductor at surface Diesel Used Last 24 538 cut was made 37" from bottom of cellar on 20 ". Note: Begin cleaning pits at 12:00 10/1. Begin adding Diesel Received H2o and prep to mix new flow pro mud at 0530hrs 10 -2 -11 TOTAL DIESEL 5,222 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL _ COMPANY NOTE COUNT HOURS TOTAL _ Nabors Rig Crew 24 12.5 300 Aimm Vac truck 6 12 72 PRA DSM _ 1 24 24 BHI MWD 2 12 24 PRA Safety 1 2 - 2 0 0 PRA Geologist 0 0 0 FMC Well head - 1 8 8 CINGSA Conrad /Rick 0 0 0 Canrig Mud loggers 2 12 24 BHI Directional 2 12 24 Schlumberger R/U cmt unit - 3 8 24 Mi swaco Mud Eng. 2 12 24 Weatheford Casing Crew 2 12 24 0 0 Mi swaco De water 2 12 24 - TOTAL COUNT 46 TOTAL MAN HOURS 574 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 133# X-56 Welded Conductor Pipe RT 9467 7467 RTC.mnri 1 37i 6R# .I -66 RT(. mnri I - Rn nnunlinnc carfare cacinn CINGSA - Y DRILLING REPORT Date: 10/3/2011 Well Name CLU Stora BHA r: DSM Days: Joh !son Current Depth. 2482' Location: Kenai, AK De 2465 2465 Cell Phone. (907) 9 -4306 Ftg /24hrs. 0 Freld/Pool: Cannery Loop / Sterling C Contractor Nabors Alaska -Rig 105 E N gh1s.. John Nicholson Days since 5 Present RIH Rig Phone: (907) 398 -3156 Cell Phone. 907-299-4306 Spud Operation. _ DRILLING DATA BIT 0 SIZE MFG TYPE SER 9 JETS IN OUT FEET BIT GRADE TOTAL HOURS /1 /85 1 16" HCC VM -1 5198829 3x181x16 118' 2480 2362 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480' #DIV /0! CASING 1 SIZE WEIGHT GRADE' _ THREAD DEPTH_ CEMENT COMPANY 1 DATE Conductor 20" 133# X -56 Welded 97' N/A July Surface. 13.375 68# J -55 BTC mod 2467' Schlumberger 1 - Oct _ Intermediate Production Liner PUMP #1 IPUMP #2 )MUD PROPERTIES: MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANE Gardner Denver WEIGHT 8.8 GEL (50 m baq) 19 124.00 PUMP TYPE PZ -9 PUMP TYPE PZ -9 FUNNEL VIS 80 S. ASH (50 lb beq) 4 4 LINER SIZE 6 LINER SIZE 6 R600 /R300 45/34 CAUSTIC STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 27/21 LOTORO 330 330 SPM SPM R6 /R3 9/8 ASPHASOL SUPREME GPS 3.14 GPS 3.14 PV 11 CONQOR404 GPM GPM YP 23 SODIUM METABISULFITE 8 8 PSI PSI GELS 9/12/15 FLOWZAN 12 27 BTMS UP MIN BTMS UP MIN API FLUID LOSS 6 PAC TOT CIR MIN TOT CIR MIN CAKE APH /HT .0 CF -DESCO II AVDP: AVDP: SOLIDS 5 MYACIDE G525 AVDC: AVDC', OIL/WATER /95 SCREEENKLEEN 8 8 AVDC: AVDC. SAND 0 KLA-GARD 8 8 DRILL STRING & HYDRAULICS PH 8.5 POTASSIUM CHLORIDE 100 100 STRING WT. 74 6/00 Pf /Mf .05/1.20 SAFE -CARB 40 56 56 PICKUP 85 RPM 80 120 CHLORIDES 20350 SODIUM BICARBONATE SLACK OFF 60 TFA 0.942 CA 160 BARITE 92 92 MAX PULL 75 HSP 93 VOL. PIT -(BBL) 670 LIQUIDS DPOD PRESS DROP 290 HOLE - (BBL) 372 SOLIDS (BBLS hauled by AIMM) 154 1683 DCOD - JET VEL 186 API SCREEN 4x200 4x200 Daily Mud Cum. ACTIVITY SUMMARY 1 TIME SUMMARY _ Start 1 Finish 1 Hours 1 Description "Detail Daly Cumulative 6:00 10:00 3.00 Continue to Nipple up BOPE set annular nipple up choke RU /RD 137.00 and kill lines. Install riser, flow and trip tank line. Drilling 23.50 10:00 11:00 1.00 P/U and make up Test joint, set test plug Service /Repair Rig 0.50 11:00 Test BOP and all related components 250/2500 5min. Test Surveys 1-R/1 system and flow alarms. Test LEL and gas alarms. Trips 6.00 52.00 Perform accumulator drawdown test. All passed. Witness Change BHA 5.50 19.50 5.50 waved by lou Grimaldi AOGCC 2030hrs 10 -1 -11 Casing 6.50 8.50 16:30 1.00 Pull test plug. Set wear bushing lay down test Jt. Cementing 4.00 16:30 17:30 1.00 Test 13 3/8 casing to 2500psi 30min. Final PSI 2490psi Logging 17:30 21:30 3.00 w. PJSM: P/U drift & RIH with 5' drill pipe 65jts ( 3.052 Drift) NU /ND Test 6.00 32.00 21:30 22:30 1.00 POH and stand back Drill pipe 30 Stands DST /Core 22:30 23:00 0.50 Service Rig complete Building new 8.8 flow pro mud 670b Well Control 23:00 4:00 5.00 P/U 12 1/4 Hole section auto track BHA WOO 4:00 4:30 0.50 RIH with HWDP to 945', Pulse test MWD/ motor P&A 4:30 6:00 1.50 RIH P/U Drift 5" drill pipe F/ pipe Shed 36jts Safety Meetings 6.00 Drilling Cement Circ /Other 5.00 TOTAL 24.00 288.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 O.D. 1 I.D. 1 NECK 1 CONK 1 VENDOR 1 LENGTH 1 LENGTH (CUMULATIVE) 1 BHA HOURS 1 Steering Heed, Flex NM Xo 9 1/2 6 5/8 rag 81-1I 23.72 25.06 2 Ontreketeb,bcpm,stop 8 1/4 T -2 BHI 37.72 62.78 3 NM Filter Sub 8 1/4 2 7/8 6 5/8 reg BHI 5.59 68.37 4 NM X/0 Float Sub 8 1/4 2 7/8 6 5/8 H -90 BHI 2.76 71.13 5 CSNMDP 7 5/8 213/18 3.00 6 5/8 1-1-90 8HI 29.62 100.75 6 CSNMDP 711/16 2 7/8 3.27 6 5/8 1-1-90 8HI 29.27 130.02 7 CSNMDP 7 3/4 2 7/8 1.00 6 5/8 H -90 811I 2098 160.00 8 NM X -over 7 13/16 2 13/18 6 5/8 reg. BHI 201 162.01 9 Circ. Sub/Ball Catcher 8 1/4 2 13/16 6 5/8 reg. MI 1418 176.79 10 Xover ( corrosion ring ) 7 11/16 2 13/16 41/211 BHI 1.56 178.35 11 4x HWDP 5 3 41/211 Nabors 118.57 296.92 12 Jars 6 1/8 211/16 41/211 WFD 31.72 328.64 13 19x HWDP 5 3 41/211 Nabors 567.83 896.47 1.34 BHA TOTAL LENGTH 896.47 896.47 0.00 6 , "j y , t, ;"* t os,'' m ;? MARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 5,222 Diesel Used Last 24 451 Diesel Received TOTAL DIESEL 4,771 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Aimm Vac truck 2 12 24 PRA DSM 2 24 48 BHI MWD 2 12 24 PRA Safety 1 2 2 0 0 PRA Geologist 0 0 0 8 0 CINGSA Conrad /Rick 0 0 0 Canriq Mud loggers 2 12 24 BHI Directional 2 12 24 Schlumberger R/U cmt unit 3 8 24 Mi swaco Mud Eng. 2 12 24 0 0 0 Mi swaco De water 2 12 24 - TOTAL COUNT 40 TOTAL MAN HOURS 518 • • FROM TO LENGTH JOINT DESCRIPTION III G/L 97' 97' Welded 20" 133# X- ed Conductor Pipe RT _ 2467 2467 BTCmod 13.375 68# J- BTC mod L- 80 couplings surface casing Surface FROM TO LENGTH JOINTS DESCRIPTION 2480 2467.37 12.63 - RatHole 2467.37 2465.5 1.87 - 13 3/8" Float Shoe 2465.5 2425.21 40.29 1 13.375 68# J -55 BTC mod L- 80 s cou lin P 9 2425.21 2423.28 1.93 - 13 3/8" Stab in Float Collar 2423.28 37.6 2385.68 59 13.375 68# J -55 BTC mod L- 80 couplings 37.6 19.4 18.2 - Cut 13.375 68# J -55 BTC mod L- 80 couplings 19.4 0 19.4 - RT to 13 3/8" Stub Intermediate • • CINGSA - DAILY DRILLING REPORT Date: 10/4/2011 Well Name CLU Storage 4 BHA #: 2 DSM Days: John Nicholson Current Depth: 4151 Location: Kenai, AK Tar 8,753' Cell Phone: (907) 299 - 4306 Depth: Ftg /24nrs. 1669 Field /Pool: Cannery Loop / Sterling C Rig Nabors Alaska - Rig 105 E DSM Stephen Ratcliff Contractor: Nights: Days Since Spud 6 Present Drill Ahead @ 4151' Rig Phone: (907) 398 - 3156 Cell Phone: (281) 914 - 6250 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 118' 2480 2362 1- wt ae -1 -- td 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480' #DIV /0! CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate Production Liner PUMP #1 PUMP #2 'MUD PROPERTIES: 'MUD ADDITIVES: 1 Daily 'Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.8 GEL (50 Ib bag) 124.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 52 S. ASH (50 lb bag) 4 LINER SIZE 6 LINER SIZE 6 R600 /R300 43/33 CAUSTIC 4 4 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 26/20 LOTORQ 330 660 SPM 155 SPM 155 R6 /R3 9/7 ASPHASOL SUPREME GPS 3.14 GPS 3.139 PV 10 CONQOR 404 GPM 500 GPM 500 YP 23 SODIUM METABISULFITE 8 PSI 920 PSI 920 GELS 9/12/14 FLOWZAN 12 39 BTMS UP MIN 35.2 BTMS UP MIN 35.2 API FLUID LOSS 5.8 PAC 8 8 TOT CIR MIN 75.5 TOT CIR MIN 75.5 CAKE APH /HT .0 CF -DESCO II AVDP: AVDP: 104.70 SOLIDS 5 MYACIDE GA25 2 2 AVDC: AVDC: - OIUWATER 1/96 SCREEENKLEEN 130 138 AVDC: AVDC: SAND .7 KLA -GARD 2 10 DRILL STRING & HYDRAULICS PH 8.5 POTASSIUM CHLORIDE 50 150 STRING WT. 85 WOB 2 Pf /Mf .02/1.20 SAFE -CARB 40 56 PICK UP 90 RPM 130 CHLORIDES 20000 SODIUM BICARBONATE SLACK OFF 75 TFA 0.942 CA 160 BARITE 92 MAX PULL 90 HSP 93 VOL. PIT - (BBL) 457 LIQUIDS DPOD 5 PRESS DROP 294 HOLE - (BBL) 503 SOLIDS (BBLS hauled by AIMM) 354 2411 DCOD - JET VEL 194 API SCREEN 4x165 4x200 Daily Mud Cum. ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours f Description 'Detail 1 Daily 1 Cumulative, 6:00 Rih to 2330' Wash down to 2414' tag firm cement 9' from RU /RD 137.00 7:00 1.00 Float collar at 2423' Drilling 18.50 42.00 7:00 Drill cement F/ 2414' to 2423' top of float collar, drill out shoe Service /Repair Rig 0.50 track to 2467 (13 3/8 shoe) Clean out old hole F/ 2467' to Surveys 8:30 1.50 2482', Drill formation F/ 2482 -2502. Trips 1.00 53.00 8:30 9:30 1.00 P/ U and circulate at 2467' for displacement of mud. Change BHA 19.50 9:30 12:00 2.50 Clean out pit #6 and clean out troughs and possum bellies Casing 8.50 under shakers Cementing 4.00 12:00 12:30 0.50 Displace hole with new 8.7ppg flow pro mud 348bb1s taking Logging returns to the dewatering tanks NU /ND Test 0.50 32.50 12:30 1:00 0.50 Perform FIT test 8.7mw 2097'TVD 728psi = 15.4ppg EMW DST /Core 1:00 18:00 5.00 Drill 12 1/4 hole section F/ 2502' - 2918' Up wt 85k Well Control S/O 65k. Rot. 83k. Tq 7k.ART 2.6 158spm 950psi 500gpm. WOO 18:00 0:00 6.00 Drill 12 1/4 hole section F/2918' -3670' Up wt 90k P &A S/O 70k. Rot. 76k. Tq 8k. 158spm 950psi 500gpm. Safety Meetings 6.00 0:00 6:00 6.00 Drill 12 1/4 hole section F/3670' -4151' Up wt 92k Drilling Cement 1.50 1.50 S/O 70k. Rot. 74k. Tq 9k. 154spm 980psi 500gpm. Circ /Other 2.50 7.50 24.00 See notes below: TOTAL 24.00 312.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 O.D. 1 I.D. I NECK I CONN I VENDOR I LENGTH 1 LENGTH (CUMULATIVE) I BHA HOURS 1 Steering Head, Flex NM Xo 9 1/2 6 5/8 rag BHI 23 72 25.06 2 Ontrak,stab,bcpm,stop 8 1/4 T -2 BHI 37.72 62.78 3 NM Filter Sub 8 1/4 2 7/8 6 5/8 reg BHI 5.59 68.37 4 NM X/0 Float Sub _ 8 1/4 2 7/8 6 5/8 H -90 BHI 2.76 71.13 5 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 100.75 6 CSNMDP 7 11/16 2 7/8 3.27 6 5/8 H -90 BHI 29.27 130.02 7 CSNMDP _ 7 3/4 2 7/8 1.00 6 5/8 H -90 BHI 29.98 160.00 8 NM X -over 7 13/16 2 13/16 6 5/8 reg. BHI 2.01 162.01 9 Circ. Sub /Ball Catcher 8 1/4 2 13/16 6 5/8 reg. MI 14.78 176.79 10 Xover ( corrosion ring) 7 11/16 2 13/16 4 1 /2if _ BHI 1.56 178.35 11 4x HWDP 5 3 4 1/2 if Nabors 118.57 296.92 12 Jars 6 1/8 211/16 4 1/2if WFD 31.72 328.64 13 19 x HWDP 5 3 4 1 /2if Nabors 567.83 896.47 1.34 BHA TOTAL LENGTH 896.47 896.47 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 4,771 Perform BOP test drill on rig. Note : every 500' circulate B/u to maintain hole cleaning Diesel Used Last 24 876 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. Diesel Received 0 TOTAL DIESEL 3,895 • • CINGSA - DAILY DRILLING REPORT Date: 10/5/2011 Well Name CLU Storage 4 BHA #: 2 DSM Days: John Nicholson Current Depth: 5492 Location: Kenai, AK Tar 8,753' Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 1341 Field/Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E N � g h M Stephen Ratcliff Days Since Spud 7 Present Drill Ahead @ 5492' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 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 118' 2480 2362 4-1- wl- ae- i - " -1d 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480' #DIV /0! CASING SIZE WEIGHT GRADE 1 THREAD DEPTH CEMENT COMPANY 1 DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: JMUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.9 GEL (50 Ib bag) 124.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 52 S. ASH (50 lb bag) 4 LINER SIZE 6 LINER SIZE 6 R600/R300 _ 41/30 CAUSTIC 6 10 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 24/18 LOTORQ 990 1650 SPM 155 SPM 155 R6 /R3 8/7 ASPHASOL SUPREME GPS 3.14 GPS 3.139 PV 11 CONQOR 404 _ GPM 500 _ GPM 500 YP 19 SODIUM METABISULFITE 3 11 PSI _ 920 PSI 920 GELS 7/10/11 FLOWZAN 39 BTMS UP MIN 46.5 BTMS UP MIN 46.5 API FLUID LOSS 5.8 PAC _ 13 21 TOT CIR MIN 95.2 TOT CIR MIN _ 95.2 CAKE APH /HT 1/ CF -DESCO II 2 2 AVDP: AVDP: 104.70 SOLIDS 3 MYACIDE GA25 2 4 AVDC: _AVDC: _ - OIUWATER 3/95 SCREEENKLEEN 138 AVDC: AVDC: SAND _ 0.5 KLA -GARD 4 14 DRILL STRING & HYDRAULICS PH 9.5 POTASSIUM CHLORIDE 104 254 STRING WT. 90 WOB 2 Pf /Mf .20/1.30 SAFE -GARB 40 _ 56 PICKUP 115 RPM 130 CHLORIDES _ 18000 SODIUM BICARBONATE SLACK OFF 80 TFA 0.942 CA 160 BARITE 55 147 MAX PULL 120 HSP 93 VOL. PIT - (BBL) 526 LIQUIDS DPOD 5 PRESS DROP 294 HOLE - (BBL) 648 SOLIDS (BBLS hauled by AIMM) _ 2411 _ DCOD - JET VEL 188 API SCREEN 4x165 4x200 Daily Mud Cum. ACTIVITY SUMMARY TIME SUMMARY Start 1 Finish Hours 1 Description Detail 1 1:: 1 Cumulative 6:00 10:00 4.00 Drill 12 1/4 hole section F/4151'- 4631' Up120 wt k RU /RD 137.00 S /080 k. Ro t90 k. Tq k. 154spm 980psi 500gpm. ART =2.4 Drilling 12.00 54.00 10:00 11:00 1.00 Circulate B/U cont circ. Until shakers clean up Mix dry job Service /Repair Rig 1.00 1.50 11:00 15:00 4.00 Monitor well Pull 5 stands, pump dry job POH ( wiper trip) Surveys to 2467' Work and clean tight hole 2905 -2877' Continue Trips 8.50 61.50 POH on elevators to 2467' Change BHA 19.50 15:00 16:00 1.00 Service rig inspect top drive lube crown Casing 8.50 16:00 20:30 4.50 RIH ( wiper trip) F/ 2467' to 2877' on elevators. Wash and Cementing 4.00 ream clean up hole. Continue rih Pumping due to tight hole Logging and down drag to 3700' RIH on elevators to 4536' Wash NU /ND Test _ 32.50 down to 4631' tag bottom, no fill. DST /Core _ 20:30 22:00 _ 1.50 Circulate B/U clean / hole from wiper trip. 500gpm Well Control _ 22:00 _ 6:00 8.00 Drill 12 1/4 hole section F/ 4631'- 5492', P/U 115k. WOO _ S/O 80k. Rot. 90k. Tq 8 -12k. 167spm 1300psi 550gpm. P &A _ Safety Meetings _ 6.00 Drilling Cement _ 1.50 Circ /Other _ 2.50 10.00 24.00 See notes below: TOTAL 24.00 336.00 BOTTOM HOLE ASSEMBLY QTY ITEM O.D. I.D. NECK CONN VENDOR LENGTH LENGTH (CUW :ULATIVE) BHA HOURS 1 Steering Head, Flex NM Xo 9 1/2 6 5/8 rag BHI 23.72 25.06 2 Ontrak,stab,bcpm,stop 8 1/4 T -2 BHI 37.72 62.78 3 NM Filter Sub 8 1/4 2 7/8 6 5/8 reg BHI 5.59 68.37 _ 4 NM X/O Float Sub 8 1/4 2 7/8 6 5/8 H -90 BHI 2.76 71.13 5 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 100.75 6 CSNMDP 7 11/16 2 7/8 3.27 6 5/8 H -90 BHI 29.27 130.02 7 CSNMDP 7 3/4 2 7/8 1.00 6 5/8 H -90 BHI 29.98 160.00 _ 8 NM X -over 7 13/16 2 13/16 6 5/8 reg. BHI 2.01 162.01 9 Circ. Sub /Ball Catcher 8 1/4 2 13/16 6 5/8 reg. MI 14.78 176.79 10 Xover ( corrosion ring) 7 11/16 2 13/16 4 1 /2if BHI 1.56 178.35 11 4x HWDP 5 3 4 1/2 if Nabors 118.57 296.92 12 Jars 6 1/8 211/16 4 1/2if WFD 31.72 328.64 13 19 x HWDP 5 3 4 1 /2if Nabors 567.83 896.47 1.34 BHA TOTAL LENGTH 896.47 896.47 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 3,895 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. Diesel Used Last 24 1,375 Increase flow rate to 550 gpm c 03:00 Diesel Received 3,099 TOTAL DIESEL 5,619 • • CINGSA - DAILY DRILLING REPORT Date: 10/6/2011 Well Name CLU Storage 4 BHA #: 2 DSM Days: John Nicholson Current Depth: 6782 Location: Kenai, AK Tar 8,753' Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 1290 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E DghM S Ratcliff Days Since Spud 8 Present Drill Ahead @ 6782' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 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 118' 2480 2362 , w 2C ,, , 15.5 152.39 2 121/4 HCC Q0505XX 7131957 8x12 2480' #DIV /0! CASING ( SIZE 1 WEIGHT 1 GRADE THREAD 1 DEPTH CEMENT COMPANY DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate Production Liner PUMP #1 PUMP #2 IMUD PROPERTIES: MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.0 GEL (50 Ib bag) 124.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 50 S. ASH (50 Ib bag) 4.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 48/35 CAUSTIC 7 17.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 29/22 LOTORQ 660 2310.00 SPM 155 SPM 155 R6 /R3 9/8 ASPHASOL SUPREME 0.00 GPS 3.14 GPS 3.139 PV 13 CONQOR 404 2 2.00 GPM 575 GPM 575 YP 22 SODIUM METABISULFITE 6 17.00 PSI 920 PSI 920 GELS 9/13/14 FLOWZAN 9 48.00 BTMS UP MIN 58 BTMS UP MIN 58 API FLUID LOSS _ 6 PAC 11 32.00 TOT CIR MIN 104.8 TOT CIR MIN 104.8 CAKE APH /HT 1/ CF -DESCO II 2.00 AVDP: 110.70 AVDP: 110.70 SOLIDS 4 MYACIDE GA25 _ 4.00 AVDC: 163.00 AVDC: 163.00 OIL/WATER _ 3/94 SCREEENKLEEN 138.00 AVDC: AVDC: SAND 0.5 KLA-GARD 4 18.00 DRILL STRING & HYDRAULICS PH _ 9.5 POTASSIUM CHLORIDE 50 304.00 STRING WT. 90 WOB 3 Pf /Mf .15/1.30 SAFE -CARE 40 56.00 PICKUP 125 RPM 140 CHLORIDES 19000 SODIUM BICARBONATE 0.00 SLACK OFF 80 TFA 0.942 CA 180 BARITE 147.00 MAX PULL 130 HHP 112 VOL. PIT - (BBL) 526 RESINEX 55 55.00 DPOD 5 PRESS DROP _ 339 HOLE - (BBL) 884 SOLIDS (BBLS hauled by AIMM) 277 3494.00 _ DCOD - IJET VEL 205 API SCREEN 4x165 4x200 Daily Mud Cum. ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Description (Detail 1 Daily 1 Cumulative 6:00 1:00 7.00 Drill 12 1/4 hole section F/ 5492' -, P/U 115k. RU /RD 137.00 S/O 80k. Rot. 90k. Tq 8 -12k. 167spm 1300psi 550gpm. Drilling 17.50 71.50 1:00 14:00 1.00 Circulate B/U condition hole for wiper trip @ 6259' Service /Repair Rig 1.50 14:00 I 18:00 4.00 Monitor well POH (wiper trip) f/ 6259'- 4630' Pump and Surveys 0.00 rotate up to 4630' 400gpm 80rpm. Trips 5.50 _ 67.00 18:00 19:30 1.50 RIH on elevators F/ 4630' - 6163'. Wash down to 6259' Change BHA 19.50 19:30 Drill 12 1/4 hole section F/ 6259' - 6782' Casing 8.50 P/U 125k, S/O 80k, Rot. 90k, Tq 8 -15k, 182spm, 1700 psi, Cementing 4.00 570 gpm. PR rate down to 28 FPH, start adding nut plug, Logging 0.00 6:00 10.50 suspect bit balling. NU /ND Test 32.50 DST/Core 0.00 Well Control 0.00 WOO 0.00 _ P &A _ 0.00 Safety Meetings 6.00 Drilling Cement - 1.50 Circ /Other 1.00 11.00 24.00 See notes below: TOTAL 24.00 360.00 BOTTOM HOLE ASSEMBLY QTY I ITEM 1 O.D. 1 I.D. I NECK 1 CONN 1 VENDOR I LENGTH 1 LENGTH (CUMULATIVE) I BHA HOURS 1 Steering Head, Flex NM Xo 9 1/2 6 5/8 rag BHI 23.72 25.06 - 2 Ontrak,stab,bcpm,stop 8 1/4 T -2 BHI 37.72 62.78 _ 3 NM Filter Sub 8 1/4 2 7/8 6 5/8 reg BHI 5.59 68.37 4 NM X/O Float Sub 8 1/4 2 7/8 6 5/8 H -90 BHI 2.76 71.13 5 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 100.75 6 CSNMDP 711/16 2 7/8 3.27 65/8H -90 BHI 29.27 130.02 7 CSNMDP 7 3/4 2 7/8 1.00 6 5/8 H -90 BHI 29.98 160.00 8 NM X -over 7 13/16 2 13/16 6 5/8 reg. BHI 2.01 162.01 9 Circ. Sub /Ball Catcher 8 1/4 2 13/16 6 5/8 reg. MI 14.78 176.79 10 Xover ( corrosion ring) 7 11/16 2 13/16 4 1 /24 BHI 1.56 178.35 11 4x HWDP 5 3 4 1/2 4 Nabors 118.57 296.92 12 Jars 6 1/8 211/16 4 1/2if WFD 31.72 328.64 13 19 x HWDP 5 _ 3 4 1 /2if Nabors 567.83 896.47 1.34 BHA TOTAL LENGTH 896.47 896.47 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. BOP drill 85sec. All hands on station Diesel on Location 5,619 Diesel Used Last 24 1,428 Note; No problem RIH on elevators F/ 4630' - 6259' Diesel Received 0 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. @ TOTAL DIESEL 4,191 • • CINGSA - DAILY DRILLING REPORT Date: 10/7/2011 Well Name CLU Storage 4 BHA #: 2 DSM Days: Steve Ratcliff Current Depth: 8057 Location: Kenai, AK Tar 8,753' Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 1275 Field /Pool: Cannery Loop / Sterling C ContRactor: Nabors Alaska -Rig 105 E fights: Stephen Ratcliff Days Since Spud g Present Drill Ahead @ 8,057' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS El/FIR 1 16" HCC VM -1 5198829 3x18 1x16 118' 2480 2362 , - i-wt-aa- 15.5 152.39 2 121/4 HCC 0D505XX 7131957 8x12 2480' #DIV /0! CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE Conductor: 20" 133# X -56 Welded N/A July Surface: 13.375 68# J -55 BTC mod Schlumberger 1 -Oct Intermediate Production Liner PUMP #1 • PROPERTIES: MUD A• • Dail Curnulative PUMP MANF Gardner Denver P Gardner Denver WEIGHT • • lb ••• • 1 PUMP TYPE PZ - • • lb •a• • LINER SIZE 6 LINER SIZE • '•••' •• • CAUSTIC 8 25.00 STOKE LNGTH 9 STOKE LNGTH • ••' •• • •'• 338 2648.00 SPM 180 SPM 180 R6/R3 12/11 ASPHASOL SUPREME •' 64.00 GPs 9.62 GPS 9.62 PV 14 CONQOR ••• 1 3.00 GPM 577 GPM 577 YP 26 SODIUM METABISULFITE 5 22.00 PSI 1630 • FLOWZAN BTMS UP MIN 69.2 BTMS UP MIN •' • LOSS 6 PAC 7 39.00 TOT CIR MIN 120.6 TOT CIR MIN 120.6 • II 2.00 AVDP: 110.70 • • 3 • SOLIDS AVDC: 163.00 • C: 163.00 • 138.00 AVDC: • • • ' " 19.00 DRILL STRING & HYDRAULICS PH 9.5 POTASSIUM CHLORIDE : 1 1 STRING WT. _ 115 WOB 10 • : 40 19 75.00 PICKUP 175 RPM 142 CHLORIDES 18000 SODIUM BICARBONATE • 8 SLACK OFF 85 TFA 0.942 CA 180 BARITE 147.00 MAX PULL 185 HHP 113 VOL. DPOD 5 PRESS •-•- 344 • • • • • • • • DCOD 205 API SCREEN • •• Daily Mud Cum. ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Descri.tion Detail Dail Cumulative 6:00 7:30 1.50 • • ' section RU /RD 137.00 • 80K. Rot. 90k. Tq : -15k. 182spm 1700psi ••• Drillin• 17.00 •' down to 25 fph, pump nut plug for bit balling. Service /Repair Rig off bottom an• increase rotary to 145 rpm. Surveys Set 35K on bit and 140 rpm Trips 7.00 74.00 7:30 18:30 11.00 Drill ahead from 6,798' - 7,694' Change BHA _ P/U 150K. S/O 90K. Rot. 125K. Tq 12 -16K, 180 spm, Casin• 570 GPM, 1700 psi, 140 rpm. Circ B /U, pump sweep. Cementing • f 18:30 23:30 5.00 Make wiper trip F/ 7694'- 6170'. P/U 150K, S/O 90K, Logging 0.00 100 spm, 350 GPM, 1020 psi NU /ND Test 32.50 23:30 1:30 2.00 RIH on Elevators F/ 6170'- 7694'. Tag bottom, no fill. DST /Core 0.00 1:30 6:00 4.50 Drill ahead F/7694'- 8057'. P/U 175k. S/O 85k. Rot. 115k. Well Control • 1 • 577GPM, 182 SPM, 140 RPM, Tq 12 -17K, WOB 12K. WOO 0.00 P &A 0.00 Safet Meetin•s • 8 Drillin• Cement 1.50 Circ /Other 11.00 24.00 See notes below: TOTAL 24.00 384.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I O.D. I I.D. 1 NECK I CONN - I VENDOR I LENGTH I LENGTH (CUMULATIVE) I BHA HOURS 1 Steering Head, Flex NM Xo 9 1/2 6 5/8 rag BHI 23.72 25.06 2 Ontrak,stab,bcpm,stop 8 1/4 T -2 BHI 37.72 62.78 3 NM Filter Sub 8 1/4 2 7/8 6 5/8 reg BHI 5.59 68.37 4 NM X/O Float Sub 8 1/4 2 7/8 6 5/8 H -90 BHI 2.76 71.13 5 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 100.75 6 CSNMDP 7 11/16 2 7/8 3 27 6 5/8 H -90 BHI 29.27 130.02 7 CSNMDP 7 3/4 2 7/8 1 00 6 5/8 H -90 BHI 29.98 160.00 8 NM X -over 7 13/16 2 13/16 6 5/8 reg. BHI 2.01 162.01 9 Circ. Sub /Ball Catcher 8 1/4 2 13/16 6 5/8 reg. MI 14.78 176.79 10 Xover ( corrosion ring) 7 11/16 2 13/16 4 1 /2if - BHI 1.56 178.35 11 4x HWDP 5 3 4 1/2 if Nabors 118.57 296.92 12 Jars 6 1/8 211/16 4 1/2if WFD 31.72 328.64 13 19 x HWDP 5 3 _ 4 1 /2if Nabors 567.83 896.47 1.34 BHA TOTAL LENGTH 896.47 896.47 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 4,191 Diesel Used Last 24 1,551 Note - No problem RIH on elevators F/ 6170' - 7694' Diesel Received 0 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. @ TOTAL DIESEL 2,640 • 0 CINGSA - DAILY DRILLING REPORT Date: 10/8/2011 Well Name CLU Storage 4 BHA #: 2 DSM Days: Steve Ratcliff Current Depth: 8619 Location: Kenai, AK Tar 8619 Cell Phone: (907) 230 - 9902 Depth: ig Ftg /24hrs. 562 Field/Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E DSM s Stephen Ratcliff Days Since Spud 10 Present POH for Wiper Trip Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FTIHR _ 1 16" HCC VM-1 5198829 3x18 1x16 118 2480 2362 -fla - d 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 #DIV /0! CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL (50 lb bag) 4 128.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 54 S. ASH (50 lb bag) 6 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 49/35 CAUSTIC 8 33.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 29/22 LOTORQ 330 2978.00 SPM 180 SPM 180 R6 /R3 11/10 ASPHASOL SUPREME 91 155.00 GPS 10.67 GPS 10.67 PV 14 CONQOR 404 3.00 GPM 640 GPM 640 YP 21 SODIUM METABISULFITE 2 24.00 PSI 2150 PSI 2150 GELS 10/13/15 FLOWZAN 52.00 BTMS UP MIN 68.4 BTMS UP MIN 68.4 API FLUID LOSS 5.2 PAC 7 46.00 TOT CIR MIN 120.9 TOT CIR MIN 120.9 CAKE APH /HT 1/ CF -DESCO II 1 3.00 AVDP: 110.70 AVDP: 110.70 SOLIDS 4.5 MYACIDE GA25 4.00 AVDC: 163,00 AVDC: 163.00 OIL/WATER 4/92 SCREEENKLEEN 138.00 AVDC: AVDC: SAND 0.5 KLA -GARD 2 21.00 DRILL STRING & HYDRAULICS PH 9.6 POTASSIUM CHLORIDE 50 398.00 STRING WT. 115 WOB 15 Pf /Mf .20/1.65 SAFE -CARB 40 75.00 PICK UP 180 RPM 140 CHLORIDES 17500 SODIUM BICARBONATE 0.00 SLACK OFF 80 TFA 0.942 CA 200 BARITE 30 177.00 MAX PULL 185 HHP 165 VOL. PIT - (BBL) 657 RESINEX 40 95.00 DPOD 5 PRESS DROP 441 HOLE - (BBL) 1185 SOLIDS (BBLS hauled by AIMM) 620 4114.00 DCOD - JET VEL 232 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY - Start I Finish 1 Hours I Description IDetail 1 Daily 1 Cumulative 6:00 19:30 13.50 Drill 12 1/4 hole section F/ 8057'- 8619', P/U 185k. RU /RD 137.00 S/O 80K. Rot. 115k. Tq 18 -21k. 12Orpm 2150psi 640gpm. Drilling 13.50 102.00 Geologist - pick casing depth at 8619'. Service /Repair Rig 1.50 19:30 _ 20:45 1.25 Circulate bottoms up for wiper trip. Surveys 0.00 20:45 0:00 3.25 Make wiper trip F/ 8619'- 7598'. P/U 180K, S/O 80K, 11 Orpm, Trips 6.00 80.00 2100 psi, 640gpm, 200spm Change BHA 19.50 0:00 2:45 2.75 POH on elevators for wiper assembly F/ 7598' - 6010', Casing 8.50 P/U 180K, 5/0 77K. Cementing 4.00 2:45 3:15 0.50 Work through tight spot F/ 6010'- 6061', Pull 200K Logging 0.00 3:15 6:00 2.75 Back ream F/ 6061'- 5301', 520gpm, 165spm, 12Orpm, NU /ND Test 32.50 1410psi, P/U 180K, S/0 80K, Rot. 108K. DST /Core 0.00 Well Control 0.00 WOO 0.00 P &A 0.00 Safety Meetings 6.00 Drilling Cement 1.50 Circ /Other 4.50 15.50 24.00 See notes below: TOTAL 24.00 408.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I 0.0. I I.D. I NECK I CONN 1 VENDOR I LENGTH 1 LENGTH (CUMULATIVE) I BHA HOURS 1 Steering Head, Flex NM Xo 9 1/2 6 5/8 rag - BHI 23.72 25.06 2 Ontrak,stab,bcpm,stop 8 1/4 T -2 BHI 37.72 62.78 3 NM Filter Sub 8 1/4 2 7/8 _ 6 5/8 reg BHI 5.59 68.37 4 NM X/0 Float Sub 8 1/4 2 7/8 6 5/8 H -90 BHI 2.76 71.13 5 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 100.75 6 CSNMDP 7 11/16 2 7/8 3.27 6 5/8 H -90 BHI 29.27 130.02 7 CSNMDP 7 3/4 2 7/8 1.00 6 5/8 H -90 BHI 29.98 160.00 8 NM X -over 7 13/16 2 13/16 6 5/8 reg. _ BHI 2.01 162.01 9 Circ. Sub /Ball Catcher 8 1/4 2 13/16 6 5/8 reg. MI 14.78 176.79 10 Xover ( corrosion ring) 7 11/16 2 13/16 4 1 /2if BHI 1.56 178.35 11 4x HWDP 5 3 4 1/2 if Nabors 118.57 296.92 12 Jars 6 1/8 211/16 41/21 WFD 31.72 328.64 13 19 x HWDP 5 3 4 1/24 Nabors 567.83 896.47 1 34 BHA TOTAL LENGTH 896.47 896.47 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 3,640 Diesel Used Last 24 2,370 Geologist picked TD for 9 5/8" casing at 8619'. Diesel Received 2,825 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. @ TOTAL DIESEL 4,095 • • CINGSA - DAILY DRILLING REPORT Date: 10/9/2011 Well Name CLU Storage 4 BHA #: 3 DSM Days: Steve Ratcliff Current Depth: 8619 Location: Kenai, AK Target 8619 Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska - Rig 105 E N°ghts: Stephen Ratcliff ia Days Since Spud 11 Present RIH for Wiper Trip Rig Phone: (907) 398 - 3156 Cell Phone: (281) 914 - 6250 Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/FIR 1 16" HCC VM -1 5198829 3x18 1x16 118 2480 2362 ,-,- wt-ae- i -n-td 15.5 152.39 2 12 1/4 HCC QD505XX 7131957 8x12 2480 8619 6139 *1- wi -a -x- ,,"-id 45.3 135.52 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate Production Liner PUMP #1 (PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL (50 Ib bag) 128.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 50 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 47/34 CAUSTIC 33.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 28/23 LOTORQ 2978.00 SPM 180 SPM 180 R6 /R3 10/9 ASPHASOL SUPREME 155.00 GPS 10.67 GPS 10.67 PV 13 CONQOR 404 3.00 GPM 640 GPM 640 YP 21 SODIUM METABISULFITE 24.00 PSI 2150 PSI 2150 GELS 10/13/15 FLOWZAN 52.00 BTMS UP MIN 68.4 BTMS UP MIN__ 68.4 API FLUID LOSS 5.6 PAC 46.00 TOT CIR MIN 120.9 TOT CIR MIN 120.9 CAKE APH /HT 1/ CF -DESCO II 3.00 AVDP: 110.70 AVDP: 110.70 SOLIDS 4.5 MYACIDE GA25 4.00 AVDC: 163.00 AVDC: 163.00 OIL/WATER 4/92 SCREEENKLEEN 138.00 AVDC: - AVDC: - SAND 0.5 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 9.3 POTASSIUM CHLORIDE 398.00 STRING WT. 115 WOB 15 Pf /Mf .10/1.60 SAFE -GARB 40 75.00 PICK UP 180 RPM 140 CHLORIDES 18000 SODIUM BICARBONATE 0.00 SLACK OFF 80 TFA 0.942 CA 200 BARITE 30 207.00 MAX PULL 185 HHP 165 VOL. PIT - (BBL) 657 RESINEX 95.00 DPOD 5 PRESS DROP 441 HOLE - (BBL) 1263 SOLIDS (BBLS hauled by AIMM) 97 4211.00 DCOD - JET VEL 232 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description 1Detail 1 Daily 1 Cumulative 6:00 16:00 10.00 Back ream F/ 5301'- 2451', 520gpm, 165spm, 12Orpm, RU /RD 137.00 1410psi, P/U 180K, S/O 80K, Rot. 108K. Drilling 102.00 16:00 19:30 3.50 POH on elevators for wiper assembly F/ 2451' - Surface'. Service /Repair Rig 4.00 5.50 19:30 22:30 3.00 Lay down BHA #2 for wiper run. Surveys 0.00 22:30 12:00 1.50 Make up BHA #3 for wiper trip. Trips 15.00 95.00 12:00 4:00 4.00 DOWNTIME - Top drive down due to hydraulic Teaks Change BHA 5.00 24.50 and electrical faults. Repair with rig electricians. Casing 8.50 4:00 4:30 0.50 Complete make up of wiper trip BHA. Cementing 4.00 4:30 6:00 1.50 RIH to make wiper trip run for running 9 5/8" casing. Logging 0.00 NU /ND Test 32.50 DST /Core 0.00 Well Control 0.00 WOO 0.00 P &A 0.00 Safety Meetings 6.00 Drilling Cement 1.50 Circ /Other 15.50 24.00 See notes below: TOTAL 24.00 432.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 O.D. 1 I.D. 1 NECK 1 CONN 1 VENDOR! LENGTH 1 LENGTH (CUMULATIVE) 1 BHA HOURS 1 QD505XX PDC Bit 12 1/4 HCC 1.34 1.34 2 Bit Sub w/ Float 8 6 5/8 H -90 BHI 2.46 3.80 3 NM String Stabilizer 8 2 13/16 2.58 6 5/8 H -90 BHI 6.00 9.80 4 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 39.42 5 NM String Stabilizer 8 1/8 2 13/16 2.35 6 5/8 reg. BHI 5.39 44.81 6 NM X -Over 7 13/16 2 13/16 6 5/8 reg. BHI 2.01 46.82 7 X -over (corrosion ring 7 11/16 2 13/16 4 1 /2if BHI 1.56 48.38 8 4x HWDP 5 _ 3 4 1/2 if Nabors 118.57 166.95 9 Jars 6 1/8 211/16 4 1/2if WFD 31.72 198.67 10 19 x HWDP 5 3 4 1 /2if Nabors 567.83 766.50 BHA TOTAL LENGTH 766.50 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 4,095 Top drive down due to electrical faults and hydraulic leak, no use of link tilt and cannot rotate. Diesel Used Last 24 1,312 Geologist picked TD for 9 5/8" casing at 8619'. Diesel Received 0 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. TOTAL DIESEL 2,783 • • CINGSA - DAILY DRILLING REPORT Date: 10/10/2011 Well Name CLU Storage 4 BHA #: 3 DSM Days: Steve Ratcliff Current Depth: 8619 Location: Kenai, AK Tar 8619 Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E DghM Stephen Ratcliff ts Days Since Spud 12 Present Change to 9 5/8" Rams to Run Casing Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS F1 /HR 1 16" HCC VM -1 5198829 3x18 1x16 118 2480 2362 , - w - , - td 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1- wt- a- x-- " " -td 45.3 135.52 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE ] Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: 1MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.2 GEL (50 Ib bag) 10 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 57 S. ASH (50 Ib bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 48/34 CAUSTIC 33.00 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 27/21 LOTORQ 1 2979.00 SPM 180 SPM 180 R6 /R3 9/8 ASPHASOL SUPREME 30 185.00 GPS 10.67 GPS 10.67 PV 14 CONQOR 404 3.00 GPM 640 GPM 640 YP 20 SODIUM METABISULFITE 24.00 PSI 2150 PSI 2150 GELS 10/13/14 FLOWZAN 52.00 BTMS UP MIN 68.4 BTMS UP MIN 68.4 API FLUID LOSS 5.4 PAC 46.00 TOT CIR MIN 120.9 TOT CIR MIN 120.9 CAKE APH /HT 1/ CF -DESCO II 3.00 AVDP: 110.70 AVDP: 110.70 SOLIDS 4.5 MYACIDE GA25 4.00 AVDC: 3.00 AVDC: 163.00 OIUWATER 4/92 SCREEENKLEEN 138.00 AVDC: AVDC: - SAND 0.5 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 9.2 POTASSIUM CHLORIDE 398.00 STRING WT. 115 WOB 15 Pf /Mf .10/1.55 SAFE -CARB 40 20 95.00 PICK UP 180 RPM 140 CHLORIDES 19000 SODIUM BICARBONATE 0.00 SLACK OFF 80 TFA 0.942 CA 200 BARITE 30 237.00 MAX PULL 185 HHP 165 VOL. PIT - (BBL) 502 RESINEX 95.00 DPOD 5 PRESS DROP 441 HOLE - (BBL) 1246 SOLIDS (BBLS hauled by AIMM) 57 4268.00 DCOD - JET VEL 232 API SCREEN 4X165 4X200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish I Hours 1 Description 'Detail 1 Daily 1 Cumulative 6:00 12:30 6.50 RIH F/ 2180' - 8610' to make wiper trip. RU /RD 137.00 12:30 15:30 3.00 Circulate bottoms up, pump high vis sweep, and lubricant pill. Drilling 102.00 15:30 22:00 6.50 POH F/ 8610' -2390' on elevators. Service /Repair Rig 5.50 22:00 23:00 1.00 Circulate bottoms up @ 2,390'. Surveys 0.00 23:00 1:30 2.50 POH F/ 2390' to surface for 9 5/8" casing run. Trips 15.50 110.50 1:30 3:00 1.50 Lay down wiper cleaning BHA. Change BHA 1.50 26.00 3:00 6:00 3.00 Change out 5" rams to 9 5/8" rams and test rams and bag. Casing 8.50 Stage casing tools on rig floor, R/U Weatherford for run. Cementing 4.00 Logging 0.00 NU /ND Test 3.00 35.50 DST /Core 0.00 Well Control 0.00 WOO 0.00 P &A 0.00 Safet Meetings 6.00 Drilling Cement 1.50 Circ /Other 4.00 19.50 24.00 See notes below: TOTAL 24.00 456.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 O.D. 1 I.D. I NECK I CONN 1 VENDOR I LENGTH 1 LENGTH (CUMULATIVE) 1 BHA HOURS 1 QD505XX PDC Bit 12 1/4 HCC 1.34 1.34 2 Bit Sub w/ Float 8 6 5/8 H -90 BHI 2.46 3.80 3 NM String Stabilizer 8 2 13/16 2.58 6 5/8 H -90 BHI 6.00 9.80 4 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 39.42 5 NM String Stabilizer 8 1/8 2 13/16 2.35 6 5/8 reg. BHI 5.39 44.81 6 NM X -Over 7 13/16 2 13/16 _ 6 5/8 reg. BHI 2.01 46.82 7 X -over (corrosion ring) 7 11/16 2 13/16 4 1/24 BHI 1.56 48.38 8 4x HWDP 5 3 4 1/2 if Nabors 118.57 166.95 9 Jars 6 1/8 211/16 41/2if WFD 31.72 198.67 10 19 x HWDP 5 3 4 1/24 Nabors 567.83 766.50 BHA TOTAL LENGTH 766.50 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 2,783 Diesel Used Last 24 466 Geologist picked TD for 9 5/8" casing at 8619'. Diesel Received 3,182 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. TOTAL DIESEL 5,499 • • CINGSA - DAILY DRILLING REPORT Date: 10/11/2011 Well Name CLU Storage 4 BHA #: 3 DSM Days: Steve Ratcliff Current Depth: 8619 Location: Kenai, AK Target 8619 Cell Phone: (907) 230 - 9902 Depth: ia Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E N q Stephen Ratcliff Days Since Spud 13 Present RIH with 9 5/8" Casing Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 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 118 2480 2362 1 - - wt-aa -- -td 15.5 152.39 2 12 1/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1- 1- wt-a -x- i n"-td 45.3 135.52 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate Production Liner PUMP #1 IPUMP #2 IMUD PROPERTIES: IMUD ADDITIVES: 1 Daily 'Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.2 GEL (50 lb bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 54 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 47/33 CAUSTIC 33.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 26/21 LOTORQ 2979.00 SPM 180 SPM 180 R6 /R3 9/8 ASPHASOL SUPREME 185.00 GPS 10.67 GPS 10.67 PV 14 CONQOR 404 3.00 GPM 640 GPM 640 YP 19 SODIUM METABISULFITE 24.00 PSI 2150 P51 2150 GELS 19/12/13 FLOWZAN 52.00 BTMS UP MIN 68.4 BTMS UP MIN 68.4 API FLUID LOSS 5.4 PAC 46.00 TOT CIR MIN 120.9 TOT CIR MIN 120.9 CAKE APH /HT 1/ CF -DESCO II 5 8.00 AVDP: 11i "' AVDP: 110.70 SOLIDS 4.5 MYACIDE GA25 4.00 AVDC: 1` AVDC: 163.0 OIUWATER 4/92 SCREEENKLEEN 138.00 AVDC: AVDC: SAND .5 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 9.2 POTASSIUM CHLORIDE 398.00 STRING WT. 115 WOB 15 Pf /Mf .05/1.50 SAFE -CARB 40 95.00 PICK UP 180 RPM 140 CHLORIDES 19000 SODIUM BICARBONATE 5 5.00 SLACK OFF 80 TFA 0.942 CA 200 BARITE 237.00 MAX PULL 185 HHP 165 VOL. PIT - (BBL) 526 RESINEX 95.00 DPOD 5 PRESS DROP 441 HOLE - (BBL) 1266 SOLIDS (BBLS hauled by AIMM) 51 4319.00 DCOD - JET VEL 232 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY II TIME SUMMARY Start 1 Finish 1 Hours 1 Description Detail ' Daily I Cumulative 6:00 7:30 1.50 Change out 5" rams to 9 5/8" rams and test rams and bag. RU /RD 137.00 Stage casing tools on rig floor, R/U Weatherford for run. Drilling 102.00 7:30 8:00 0.50 Test 9 5/8" rams and annular to 250/2500 psi, 5 min each. Service /Repair Rig 5.50 8:00 11:00 3.00 Make dummy run with landing joint to hanger. Complete R/U Surveys 0.00 of spider, fill up tool, and elevators. Trips 110.50 11:00 13:00 2.00 PJSM for running casing, P/U float shoe joint, 2nd joint, Change BHA 26.00 float collar joint, 4th joint, and pup joint and RIH. Casing 22.00 30.50 13:00 19:30 6.50 RIH with 9 5/8" casing from Surface to 2460'. Cementing 4.00 19:30 20:00 0.50 Circulate bottoms up, 250 gpm, 400 psi, H/L 90K Logging 0.00 20:00 1:45 5.75 RIH with 9 5/8" casing from 2460' -5201' NU /ND Test 2.00 37.50 1:45 2:00 0.25 R/U Davis Lynch DV tool. DST /Core 0.00 , 2:00 6:00 4.00 RIH with 9 5/8" casing F/ 5204' -8197' Well Control 0.00 WOO 0.00 P &A 0.00 Safety Meetings 6.00 Drilling Cement 1.50 Circ /Other 19.50 24.00 See notes below: TOTAL 24.00 480.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I O.D. I I.D. 1 NECK 1 CONN 1 VENDOR 1 LENGTH 1 LENGTH (CUMULATIVE)' BHA HOURS 1 QD505XX PDC Bit 12 1/4 HCC 1.34 1.34 2 Bit Sub w/ Float 8 6 5/8 H -90 BHI 2.46 3.80 3 NM String Stabilizer 8 2 13/16 2.58 6 5/8 H -90 BHI 6.00 9.80 4 CSNMDP 7 5/8 2 13/16 3.00 6 5/8 H -90 BHI 29.62 39.42 5 NM String Stabilizer 8 1/8 2 13/16 2.35 6 5/8 reg. BHI 5.39 44.81 6 NM X -Over 7 13/16 2 13/16 6 5/8 reg. BHI 2.01 46.82 7 X -over (corrosion ring) 7 11/16 2 13/16 4 1/24 BHI 1.56 48.38 8 4x HWDP 5 3 4 1/2 if Nabors 118.57 166.95 9 Jars 6 1/8 211/16 41/24 WFD 31.72 198.67 10 19 x HWDP 5 3 4 1 /2if Nabors 567.83 766.50 BHA TOTAL LENGTH 766.50 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 5,499 Diesel Used Last 24 1,893 Geologist picked TD for 9 5/8" casing at 8619'. Diesel Received 0 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. TOTAL DIESEL 3,606 • • CINGSA - DAILY DRILLING REPORT Date: 10/12/2011 Wet Name CLU Storage 4 BHA #: DSM Days: Steve Ratcliff Current Depth: 8619 Location: Kenai, AK Tar 8619 Cell Phone: (907) 230 -9902 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C ContRractor: Nabors Alaska -Rig 105 E NghM: Stephen Ratcliff Days Since Spud 14 Present R/U to test BOP's Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FTJHR 1 16" HCC VM -1 5198829 3x18 1x16 118 2480 2362 1.1-w1-aa- -td 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1- *wda-x- "-td 45.3 135.52 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375 68# J -55 _ BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625 40# L -80 BTC mod 8608' Schlumberger 11 -Oct Production Liner PUMP #1 (PUMP #2 (MUD PROPERTIES: (MUD ADDITIVES: 1 Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.2 GEL (50 lb bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 54 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 47/33 CAUSTIC 33.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 26/21 LOTORQ 2979.00 SPM 180 SPM 180 R6 /R3 9/8 ASPHASOL SUPREME 185.00 GPS 10.67 GPS 10.67 PV 14 CONQOR 404 3.00 GPM 640 GPM 640 YP 19 SODIUM METABISULFITE 24.00 PSI 2150 PSI 2150 GELS 19/12/13 FLOWZAN 52.00 BTMS UP MIN 68.4 BTMS UP MIN 68.4 _API FLUID LOSS 5.4 PAC 46.00 TOT CIR MIN 120.9 TOT CIR MIN 120.9 CAKE APH /HT 1/ CF -DESCO II 25 33.00 AVDP: 11 C AVDP: 110.70 SOLIDS 4.5 MYACIDE GA25 4.00 AVDC: 1 r AVDC: 1 63.0 OIL/WATER 4/92 SCREEENKLEEN 138.00 AVDC: AVDC: SAND .5 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 9.2 POTASSIUM CHLORIDE 398.00 STRING WT. 115 WOB 15 Pf /Mf .05/1.50 SAFE -CARB 40 95.00 PICKUP 180 RPM 140 CHLORIDES 19000 SODIUM BICARBONATE 60 65.00 SLACK OFF 80 TFA 0.942 CA 200 BARITE 178 415.00 • MAX PULL 185 HHP 165 VOL. PIT - (BBL) 526 RESINEX 95.00 DPOD 5 PRESS DROP 441 HOLE - (BBL) 1266 SOLIDS (BBLS hauled by AIMM) 255.47 4574.47 DCOD - JET VEL 232 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description 'Detail 1 Daily 1 Cumulative 6:00 9:00 3.00 RIH with 9 5/8" casing F/ 8197' - 8587' RU /RD 137.00 9:00 9:30 0.50 P/U Landing joint. Land casing @ 8608' Drilling 102.00 9:30 11:30 2.00 R/D spyder, P/U circ Head, R/U to circ; circ hole Service /Repair Rig 5.50 11:30 12:00 0.50 Hold PJSM for cmt procedures Surveys 0.00 12:00 13:00 1.00 Pump 5 bbls water, low psi test to 1,000 #, High psi test to Trips 110.50 4,000 #, line up rig, pump 36 bbl mud push Change BHA 26.00 13:00 14:30 1.50 Pumped 302.5 bbls 11.9 ppg Lead Cmt Casing 9.75 40.25 14:30 15:00 0.50 Pumped 43.5 bbls 14.2 ppg FlexStone Tail Cmt Cementing 10.00 14.00 15:00 16:30 1.50 Released Davis Lynch wiper plug, pumped 5 bbls Water Logging 0.00 followed by 644 bbls 9.1# mud @ 7.lbbls / min; bumped NU /ND Test 4.25 41.75 plug, bled off pressure, checked float, held good. DST /Core 0.00 16:30 17:00 0.50 Installed Davis Lynch plug in circ head, pressured up to Well Control 0.00 2500 opened Stage Collar WOO 0.00 17:00 17:30 0.50 Circ out 80 bbls contiminated mud to cuttings tank. P &A 0.00 17:30 17:45 _ 0.25 - Pump 40 bbls mudpush @10.2 ppg Safety Meetings 6.00 17:45 18:30 0.75 Pump 201 bbl cement @ 12ppg, 5.2bpm, 558 psi Drilling Cement 1.50 18:30 19:15 0.75 Drop plug & pump 5 bbl of water, line up rig and displace Circ /Other 19.50 _ 258 bbl of mud to 3,290 stks @ 6 bpm, 630 psi, 80 spm TOTAL 24.00 504.00 Saw 50% cement returns and 11.3 ppg MW @3100 stks) 19:15 19:30 0.25 Slow to 3bpm aP, 3290 stks, 405 psi. Bump plug at 3387 stks held 2199 psi for 15 minutes.CIP @19:15hrs Oct 11,2011 19:30 22:00 2.50 Bleed off pressure, R/D cementing head, Back of landing jt. 22:00 22:45 0.75 Land Pack off at 20' 10 ", Test P/O to 3000 psi for 15 minutes 22:45 1:45 3.00 R/D Weatherford, clear rig floor, get ready to change RAMS 1:45 6:00 4.25 Change 9 5/8" Rams to 5" Rams, test rams and annular 24.00 SEE NOTES BELOW: BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 O.D. 1 I.D. 1 NECK 1 CONN 1 VENDOR' LENGTH 1 LENGTH (CUMULATIVE) 1 BHA HOURS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 BHA TOTAL LENGTH 0.00 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 3,606 Diesel Used Last 24 _ 0 Geologist picked TD for 9 5/8" casing at 8619'. Diesel Received 0 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. TOTAL DIESEL 3,606 • • 'T n rr n < 4 -', , J -, : - fi t , , i c .`i `7 . y ,T S 7 -7.; � �dR, a S . A. aW�S , ._: �. � het t ,.. ,°'�,, I �' 7 k i'`. � L � ^v -�a� a r;� COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS T OTAL Nabors MM 24 12.5 300 Aimm Vac truck 6 12 72 PRA DSM 2 24 48 ME' Mud lo..ers 4 12 48 PRA ME M' 1 2 2 Schlumber• er Cement 6 18 108 PRA Geolo•ist 1 24 24 Weatherford 111111ZEIMMI 4 10 40 CINGSA Conrad /Rick 1 1 1 Davis L nch DV Tool 1 24 24 BHI Directional 2 12 24 0 BHI MWD 2 12 24 0 MI Swaco Mud Engineer 2 12 24 0 MI Swaco Dewaterin. 3 12 36 - TOTAL COUNT 56 TOTAL MAN HOURS 775 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 133# X -56 Welded Conductor Pipe RT 2467 2467 BTCmod 13.375 68# J -55 BTC mod L- 80 couplings surface casing Intermediate FROM TO LENGTH JOINTS DESCRIPTION 8619.0 8608.0 11.0 - Rathole 8608.0 8606.0 2.1 - 9 5/8" BTC - Davis Lynch 501 Down Jet Float Shoe 8606.0 8525.1 80.9 2 9 5/8" 40# L -80 BTC 8525.1 8523.0 2.1 - 9 5/8" BTC - Davis Lynch SB Float Collar 8523.0 8482.1 40.9 1 9 5/8" 40# L -80 BTC 8482.1 8472.4 9.7 - 9 5/8" 40# L -80 BTC - LTC Pup Joint 8472.4 3406.1 5066.3 123 9 5/8" 40# L -80 BTC 3406.1 3403.8 2.3 - 9 5/8" BTC - Davis Lynch Hydraulic Stage Collar - Type 777 -HY 3403.8 23.5 3380.3 84 9 5/8" 40# L -80 BTC 23.5 20.9 2.6 - 9 5/8" 40# L -80 BTC - LTC Pup Joint 20.9 20.4 0.5 - 9 5/8" BTC - LTC UH -A - Fluted Hangar 20.4 20.4 - 9 5/8" BTC - Landing Joint n, RT •CINGSA - DAILY DRILLING REPO Date: 10/13/2011 Well Name CLU Storage 4 BHA #: 4 DSM Days: Steve Ratcliff Current Depth: 8619 Location: Kenai, AK Target 8619 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 Since Spud 15 Present Slip & Cut Drilling Line Rig Phone: (907) 398 - 3156 Cell Phone: (281) 914 - 6250 Operation: DRILLING DATA I BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 1 16" HCC VM -1 5198829 3x18 1x16 118 2480 2362 1- 1 - wt ae , - - td 15.5 152.39 2 12 1/4 HCC QD505XX 7131957 8x12 s 2480 8619 6139 1 -1 w<a x 1- "o - td 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 #DIV /0! CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Production Liner PUMP #1 PUMP #2 MUD PROPERTIES: !MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.3 GEL (50 Ib bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 55 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 45/30 CAUSTIC 33.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 25/17 LOTORQ 2979.00 SPM 180 SPM 180 _ R6 /R3 8/6 ASPHASOL SUPREME 185.00 GPS 10.67 GPS 10.67 PV 15 CONQOR 404 3.00 GPM 640 GPM 640 YP 15 SODIUM METABISULFITE 24.00 PSI - PSI - GELS 9/11/14 FLOWZAN 52.00 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS 6.8 PAC 46.00 TOT CIR MIN - TOT CIR MIN - CAKE APH /HT 1/ CF -DESCO II 33.00 AVDP: AVDP: SOLIDS 4.5 MYACIDE GA25 4.00 AVDC: AVDC: OIL /WATER 4/92 SCREEENKLEEN 138.00 AVDC: AVDC: SAND .5 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 11.7 POTASSIUM CHLORIDE 398.00 STRING WT. - WOB - Pf /Mf .90/1.70 SAFE -CARB 40 95.00 PICK UP - RPM - CHLORIDES 16000 SODIUM BICARBONATE 65.00 SLACK OFF - TFA 0.8399 CA 760 BARITE 415.00 MAX PULL - HHP - VOL. PIT - (BBL) 540 RESINEX 95.00 DPOD - PRESS DROP - HOLE - (BBL) 635 SOLIDS (BBLS hauled by AIMM) 232 4806.47 DCOD - JET VEL - API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description 1Detail I Daily 1 Cumulative 6:00 12:00 6.00 R /U, R/D for BOP Test, pull wear ring, prep for AOGCC RU /RD 137.00 Pick up test tool, clear rig floor, pretest, wait on AOGCC. Drilling 102.00 12:00 17:30 5.50 Test BOPE with AOGCC, 250/2500. R/D BOP test. Service /Repair Rig 3.50 9.00 l 17:30 20:00 2.50 Service rig, top drive, blocks, & crown. Complete zonal Surveys 0.00 derrick inspection, change out gripper die blocks, load shed Trips 3.75 114.25 for BHA #4. Change BHA 5.25 31.25 20:00 0:00 4.00 Make up BHA #4 with LWD, motor, & ontrak. Download Casing 40.25 and program MWD /LWD. Cementing 14.00 0:00 0:45 0.75 Hold PJSM and load nuclear sources in LWD Tool. Logging 0.00 0:45 1:15 0.50 M/U remaining BHA to RIH NU /ND Test 11.50 53.25 1:15 2:00 0.75 RIH on HWDP DST /Core 0.00 2:00 2:30 0.50 Test LWD tools down hole Well Control 0.00 2:30 5:00 2.50 Make up 45 joints of DP and RIH to 2390' WOO 0.00 5:00 6:00 1.00 Slip & cut drill line P &A 0.00 Safety Meetings 6.00 Drilling Cement 1.50 Circ /Other 19.50 24.00 See notes below: TOTAL 24.00 528.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I O.D. I I.D. I NECK 1 CONN - I VENDOR LENGTH I LENGTH (CUMULATIVE) 1 BHA HOURS 1 HCR503ZX PDC Bit 8 1/2 - - 4 1/2 RegB HCC 1.07 1.07 2 Motor - Steerable 1.2 Degree 6 3/4 - 1.71 4 1/2 H9OB BHI 23.10 24.17 3 NM Flex Pony 6 3/4 2 13/16 2.23 4 1/2 H90B BHI 9.20 33.37 4 NM String Stabilizer 6 3/16 2 13/16 2.34 4 1/2 H90B BHI 5.05 38.42 5 NM X -Over 6 5/8 2 3/4 - 4 1/2 IFB BHI 2.87 41.29 6 Stop /On Track /Stab /BCPM 7 - 1.45 T2B BHI 33.96 75.25 7 ORD /CCN /Stop Sub 6 3/4 2 1/2 _ 2.50 4 1/2 IFP BHI 21.53 96.78 8 NM Filter Sub 6 7/8 2 13/16 : 4 1/2 IFP BHI 5.29 102.07 9 NM X -Over 6 3/4 2 13/16 - 4 1/2 H9OB BHI 2.05 104.12 10 NMCSDP (Loading Sources) 5 2 13/16 2.20 4 1/2 H9OB BHI 30.15 134.27 11 NMCSDP 5 2 7/8 1.97 4 1/2 H9OB BHI 29.26 163.53 12 NMCSDP _ 5 2 7/8 2.71 41/2 IFB BHI 30.00 193.53 13 NMCSDP 5 2 7/8 1.95 41/2 IFB BHI 30.34 223.87 14 X -Over Steel Sub 6 3/8 2 7/8 - 4 1/2 IFB BHI _ 1.73 225.60 15 Well Commander 6 7/8 3 3/8 - 4 1/2 IFB MI Swaco 12.84 238.44 16 _4xHWDP 5 3 _ - 41/2 IFB Nabors 118.57 _ 357.01 _ 17 Jars 6 1/8 211/16 1.63 41/2 IFB WFD 31.72 388.73 18 19 x HWDP 5 3 - 4 1/2 IFB Nabors 567.83 956.56 BHA TOTAL LENGTH 956.56 956.56 0.00 REMARKS & COMMENTS DIESEL No Accidents spills or near misses. Diesel on Location 2,961 Weld on Landing ring on CLU #2. Diesel Used Last 24 468 Pressure test Wellhead CLU #3 for 15 minutes @ 5000 psi. Diesel Received 2,183 S.P.R. 1 - 35 spm, 210 psi, 40 spm, 250 psi. S.P.R. 2 - 35 spm, 200 psi, 40 spm, 250 psi. TOTAL DIESEL 4,676 CINGSA - DAILY DRILLING REPO' Date: 10/14/2011 Well Name CLU Storage 4 BHA #: 4 DSM Days: Steve Ratcliff Target Current Depth: 8754 Location: Kenai, AK Tar 9 10219 Cell Phone: (907) 230 - 9902 Depth: ia Ftg /24hrs. 0 Field/Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E NDSM: Stephen Ratcliff Days Since Spud 16 Present Drill Ahead @ 8754' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 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 118 2480 2362 1-----d 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1- 1-wt-e-x- 1 -no-td 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 #DIV /0! CASING 1 SIZE I WEIGHT 1 GRADE J THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Production Liner 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) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 46 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 40/28 CAUSTIC 33.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 20/16 LOTORQ 2979.00 SPM 136 SPM 136 R6 /R3 7/5 ASPHASOL SUPREME 185.00 GPS 7.17 GPS 7.17 PV 12 CONQOR 404 3.00 GPM 430 GPM 430 YP 16 SODIUM METABISULFITE 24.00 PSI 1521 PSI 1521 GELS 6/12/14 FLOWZAN 5 57.00 BTMS UP MIN 43.6 BTMS UP MIN 43.6 API FLUID LOSS 6.7 PAC 5 51.00 TOT CIR MIN 116.8 TOT CIR MIN 116.8 CAKE APH /HT 1/ CF -DESCO II 33.00 AVDP: 16' AVDP: 63.0i SOLIDS 3.5 MYACIDE GA25 4.00 AVDC: 197.s AVDC: 197.30 OIL /WATER 4/93 SCREEENKLEEN 138.00 AVDC: - AVDC: - SAND .2 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 12.1 POTASSIUM CHLORIDE 398.00 STRING WT. 120 WOB 4 Pf /Mf 1.20/2.00 SAFE -GARB 40 50 145.00 PICK UP 180 RPM 36 CHLORIDES 13000 SODIUM BICARBONATE 5 70.00 SLACK OFF 78 TFA 0.8399 CA 720 BARITE 415.00 MAX PULL 185 HHP 217 VOL. PIT - (BBL) 600 RESINEX 5 100.00 DPOD 5 PRESS DROP 3 HOLE - (BBL) 588 SOLIDS (BBLS hauled by AIMM) 410 5216.47 DCOD 5 JET VEL 54 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description (Detail 1 Daily 1 Cumulative 6:00 7:30 1.50 Slip & Cut Drilling line RU /RD 137.00 7:30 9:30 2.00 RIH to 3351' to stage collar Drilling 7.25 109.25 9:30 10:00 0.50 Circ & condition mud Service /Repair Rig 1.50 10.50 10:00 11:00 1.00 Tag DV collar at 3404' and drill out cement Surveys 0.00 P /U -78k, S /O -60k, Rot. -75k, 40rpm, 430gpm, 1150psi Trips 8.50 122.75 11:00 12:30 1.50 Circ & condition mud until clean Change BHA 31.25 12:30 13:30 1.00 P/T Casing 2500 psi for 30 minutes. Test good. R/D test. Casing 40.25 13:30 20:00 6.50 RIH F/3446' to 8425', fill pipe at 7180'. Circ & condition mud. Cementing 14.00 20:00 20:30 0.50 Wash down F/ 8425', no cement on top of collar Logging 0.00 20:30 21:00 0.50 Tag float collar @ 8523 & drill out, 400gpm, 1607psi, 36rpm. NU /ND Test 2.25 55.50 Rot -120k, S/O -78k, P /U -175k. No contaminated cement DST /Core 0.00 21:00 21:30 0.50 Drill cement after collar down to shoe. Good cement Well Control 0.00 Tag float shoe @ 8608 & drill out cement. Cmnt below shoe WOO 0.00 21:30 22:30 1.00 Drill ahead F/ 8619'- 8640', pull back to shoe, circ & condtion P &A 0.00 22:30 23:45 1.25 FIT Test, Leak off at 1605psi = 15.53 MW equivalent Safety Meetings 6.00 23:45 6:00 6.25 Drill ahead F/ 8640'- 8754', P /U -185k, S/O -75k, Rot -115k, Drilling Cement 2.50 4.00 430gpm, 1800psi - Saw coal from 8675- 8700'. Circ /Other 2.00 21.50 - 24.00 See notes below: TOTAL 24.00 552.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 O.D. I I.D. I NECK I CONN 1 VENDORI LENGTH I LENGTH (CUMULATIVE) I BHA HOURS 1 HCR503ZX PDC Bit 8 1/2 - - 4 1/2 RegB HCC 1.07 1.07 2 Motor - Steerable 1.2 Degree 6 3/4 - 1.71 4 1/2 H9OB BHI 23.10 24.17 3 NM Flex Pony 6 3/4 2 13/16 2.23 4 1/2 H9OB BHI 9.20 33.37 4 NM String Stabilizer 6 3/16 2 13/16 2.34 4 1/2 H9OB BHI 5.05 38.42 5 NM X -Over 6 5/8 2 3/4 - 4 1/2 IFB BHI 2.87 41.29 6 Stop /On Track/Stab /BCPM 7 - 1.45 T2B BHI 33.96 75.25 7 ORD /CCN /Stop Sub 6 3/4 2 1/2 2.50 4 1/2 1FP BHI 21.53 96.78 8 NM Filter Sub 6 7/8 2 13/16 - 4 1/2 IFP BHI 5.29 102.07 9 NM X -Over 6 3/4 2 13/16 - 4 1/2 H9OB BHI 2.05 104.12 10 NMCSDP (Loading Sources) 5 2 13/16 2.20 4 1/2 H9OB BHI 30.15 134.27 11 NMCSDP 5 2 7/8 1.97 4 1/2 H9OB BHI 29.26 163.53 12 NMCSDP 5 _ 2 7/8 2.71 41/21FB BHI 30.00 193.53 13 NMCSDP 5 2 7/8 1.95 41/2 IFB BHI 30.34 223.87 14 X -Over Steel Sub 6 3/8 2 7/8 - 4 1/2 IFB BHI 1.73 225.60 15 Well Commander 6 7/8 3 3/8 - 4 1/2 IFB _ MI Swaco 12.84 238.44 16 4x HWDP 5 3 - 4 1/2 IFB Nabors 118.57 357.01 17 Jars 6 1/8 211/16 1.63 41/2 IFB WFD 31.72 388.73 18 19 x HWDP 5 3 - 4 1/2 IFB _ Nabors 567.83 956.56 BHA TOTAL LENGTH 956.56 956.56 0.00 REMARKS & COMMENTS DIESEL Encountered weight stacking out, ROP down, pump pressure increase from 1550 to 2200 psi when Diesel on Location 4,676 picking up off bottom. Added '776 (metal to metal) lube and work pipe to clean up hole. Diesel Used Last 24 870 FIT Test @ 8640' MD, 4927' TVD. Leak Off of 1605 psi, 9.1 ppg with MW equiv = 15.53 ppg Diesel Received 0 S.P.R. 1 - 2 bpm, 230 psi, 3 bpm, 300 psi. S.P.R. 2 - 2 bpm, 240 psi, 3 bpm, 310 psi. TOTAL DIESEL 3,806 •CINGSA - DAILY DRILLING REPO./ Date: 10/15/2011 Well Name CLU Storage 4 BHA #: 4 DSM Days: Steve Ratcliff Current Depth: 9478 Location: Kenai, AK Target 10219 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 Since Spud 17 Present Wiper Trip F/ 9478' to Shoe Rig Phone: (907) 398 - 3156 Cell Phone: (281) 914 - 6250 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 118 2480 2362 1 -1 - ae 1 - " -1 d 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1- 1- w a x - "o -1 d 45.3 135.52 3 - 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 #DIV /0! CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Production Liner PUMP #1 1PUMP #2 IIMUD PROPERTIES: IMUD ADDITIVES: 1 Daily 'Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.2 GEL (50 Ib bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 49 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 48/31 CAUSTIC 33.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 25/18 LOTORQ 2979.00 SPM 136 SPM 136 R6 /R3 6/4 ASPHASOL SUPREME 185.00 GPS 7.17 GPS 7.17 PV 17 CONQOR 404 3.00 GPM 430 GPM 430 YP 14 SODIUM METABISULFITE 24.00 • PSI 1521 PSI 1521 GELS 5/12/16 FLOWZAN 57.00 BTMS UP MIN 49.4 BTMS UP MIN 49.4 API FLUID LOSS 6.8 PAC 20 71.00 TOT CIR MIN 113.4 TOT CIR MIN 113.4 CAKE APH /HT 1/ CF -DESCO II 33.00 AVDP: 163.0C AVDP: 163.00 SOLIDS 4.5 MYACIDE GA25 4.00 AVDC: 197.30 AVDC: 197.30 OIL/WATER 3/93 SCREEENKLEEN 138.00 AVDC: _ - AVDC: - SAND .33 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 11.2 POTASSIUM CHLORIDE 80 478.00 STRING WT. 125 WOB 4 Pf /Mf .70/2.80 SAFE -GARB 40 145.00 PICK UP 190 RPM 65 CHLORIDES 17500 SODIUM BICARBONATE 6 76.00 SLACK OFF 78 TFA 0.8399 CA 240 BARITE 415.00 MAX PULL 250 HHP 189 VOL. PIT - (BBL) 643 RESINEX 100.00 DPOD 5 PRESS DROP 2 HOLE - (BBL) 302 SOLIDS (BBLS hauled by AIMM) 275 5491.47 DCOD 5 JET VEL 44 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start I Finish 1 Hours 1 Description 1Detail 1 Daily 1 Cumulative 6:00 17:30 11.50 Slide /rotate F/ 8754 - 9478'. P /U -195k, S /O -75k, Rot -115k, RU /RD 137.00 430gpm, 1800 psi, Tq-16-21k, back ream each stand, work Drilling 11.50 120.75 tight spot F/ 9370 -9355. Service /Repair Rig 10.50 17:30 19:00 1.50 Circulate bottoms up to make wiper trip F/ 9478' -8608' Surveys 0.00 19:00 19:30 0.50 POH for wiper trip F/ 9487' -9179' on elevators. Trips 11.00 133.75 19:30 21:00 1.50 Work through tight spot, pump and back ream F/ 9251' -9179' Change BHA 31.25 P /U -200k, S/O -75k, Rot -135k, pulled up to 240k, 65rpm, Casing 40.25 26spm, 82gpm, 240psi. Lose 80bbls, no returns. Fill hole. Cementing 14.00 21:00 0:00 3.00 Pump 70 bbl loss circulation pill @ 9251', rot/recip pipe. Logging 0.00 Back ream F/ 9179 -9150, 9150 -9135, 9135 -9105 NU /ND Test 55.50 P /U -210k, S /O -55k, Max P /U -240k, 26spm, 80gpm, 300psi, DST /Core 0.00 75rpm, Tq- 17 -23k, total volume lost -527 bbls at 2 bpm. Well Control 0.00 0:00 5:00 5.00 Back ream F/9105 -9100, 9100 -9087, 9087 -9081, 9081 -9075 WOO 0.00 Rot P /U -125k, 41gpm, 13spm, 72 rpm, tq- 18 -22, 230psi P &A 0.00 5:00 6:00 Back ream F/ 9075 -9065 - No returns Safety Meetings 6.00 Rot P /U -125k, 41gpm, 13spm, 70 rpm, tq- 18 -22, 219psi Drilling Cement 4.00 Losing 3/4 bbl per minute, 857 total bbls lost. No Returns Circ /Other 1.50 23.00 23.00 gee notes below in Remarks & Comments section: TOTAL 24.00 576.00 BOTTOM HOLE ASSEMBLY QTY I ITEM 1 O.D. I I.D. I NECK CONN 1 VENDORr LENGTH I LENGTH (CUMULATIVE) I BHA HOURS 1 HCR503ZX PDC Bit 8 1/2 - 4 1/2 RegB HCC 1.07 1.07 2 Motor - Steerable 1.2 Degree 6 3/4 - 1.71 4 1/2 H9OB BHI 23.10 24.17 3 NM Flex Pony 6 3/4 2 13/16 2.23 4 1/2 H9OB BHI 9.20 33.37 4 NM String Stabilizer 6 3/16 2 13/16 2.34 4 1/2 H9OB BHI 5.05 38.42 5 NM X -Over 6 5/8 2 3/4 - 4 1/2 IFB BHI 2.87 41.29 6 Stop /On Track /Stab /BCPM 7 - 1.45 T2B BHI 33.96 75.25 7 ORD /CCN /Stop Sub 6 3/4 2 1/2 2.50 4 1/2 IFP BHI 21.53 96.78 8 NM Filter Sub 6 7/8 2 13/16 - 4 1/2 IFP BHI 5.29 102.07 9 NM X -Over 6 3/4 2 13/16 - 4 1/2 H9OB BHI 2.05 104.12 10 NMCSDP (Loading Sources) 5 2 13/16 2.20 4 1/2 H9OB BHI 30.15 134.27 11 NMCSDP 5 2 7/8 1.97 4 1/2 H9OB BHI 29.26 163.53 12 NMCSDP 5 2 7/8 2.71 41/2 IFB BHI 30.00 193.53 13 NMCSDP 5 2 7/8 1.95 41/2 IFB BHI 30.34 223.87 14 X -Over Steel Sub 6 3/8 2 7/8 - 4 1/2 IFB BHI 1.73 225.60 15 Well Commander 6 7/8 3 3/8 4 1/2 IFB MI Swaco 12.84 238.44 16 4x HWDP 5 3 - 4 1/2 IFB Nabors 118.57 357.01 17 Jars 6 1/8 211/16 1.63 41/2 IFB WFD 31.72 388.73 18 19 x HWDP 5 3 - 4 1/2 IFB Nabors 567.83 956.56 _ BHA TOTAL LENGTH 956.56 956.56 0.00 REMARKS & COMMENTS DIESEL Work through loss circulation and tight hole conditions, while back reaming to shoe. No returns. Diesel on Location 3,806 Pump 70 bbl Safe -Carb Loss Circulation pill @ 9,251'. Losing 2 bpm A 9251' down to 3/4 bpm @ 9074' Diesel Used Last 24 1,709 Building and maintaining volume with dewatered supply and mud sent to Swaco dewatering plant. Diesel Received 0 S.P.R. 1 - 2 bpm, 230 psi, 3 bpm, 300 psi. S.P.R. 2 - 2 bpm, 240 psi, 3 bpm, 310 psi. TOTAL DIESEL 2,097 • • CINGSA - DAILY DRILLING REPORT Date: 10/16/2011 Well Name CLU Storage 4 BHA #: 4 DSM Days: Steve Ratcliff Current Depth: 9524 Location: Kenai, AK Tar 10219 Cell Phone: (907) 230 - 9902 Depth: ig Ftg/24hrs. 46 Field /Pool: Cannery Loop / Sterling C contractor: Nabors Alaska -Rig 105 E fi Stephen Ratcliff Days Since Spud 18 Present Drill ahead F/ 9524 Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 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 118 2480 2362 1 -1 - wt - - td 15.5 152.39 2 1211/4 HCC 0D505XX 7131957 8x12 2480 8619 6139 1-1- wr- e- x-i-n " -td 45.3 135.52 3 8 1/2" HCC _ HCR503ZX 7114328 3x13 3x14 8619 #DIV /0! CASING 1 SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE Conductor: 20" 133# X -56 - Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct PUMP #1 PUMP #2 MUD PROPERTIES: MUD • • Dail Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.0 • lb .-. 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 48 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600/R300 _ 50/33 CAUSTIC 33.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 28/19 LOTORQ 2979.00 SPM 136 SPM 136 R6 /R3 _ 5/4 ASPHASOL SUPREME 185.00 GPS 7.17 GPS 7.17 PV 17 CONQOR 404 3.00 GPM 430 GPM 430 YP 16 SODIUM METABISULFITE 24.00 PSI 1521 PSI _ 1521 GELS 5/9/12 FLOWZAN 57.00 BTMS UP MIN 33.8 BTMS UP MIN 33.8 API FLUID LOSS 6.9 PAC 71.00 TOT CIR MIN 86.4 TOT CIR MIN 86.4 CAKE APH /HT 1/ CF -DESCO II 33.00 AVDP: 210..00 AVDP: 210.00 SOLIDS 6 MYACIDE GA25 4.00 AVDC: 253..6(1 AVDC: '53.60 OIL/WATER _ 2/92 SCREEENKLEEN 138.00 AVDC: AVDC: SAND .2 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 10.2 POTASSIUM CHLORIDE 56 534.00 _ STRING WT. 125 WOB 4 Pf /Mf .20/1.40 SAFE -CARB 40 264 409.00 PICKUP 190 RPM _ 65 CHLORIDES _ 13000 SODIUM BICARBONATE 76.00 SLACK OFF 78 TFA 0.8399 CA 360 BARITE _ 415.00 MAX PULL 250 HHP 189 VOL. PIT - (BBL) 646 RESINEX 100.00 DPOD 5 PRESS DROP 2 HOLE - (BBL) 543 SOLIDS (BBLS hauled by AIMM) 32 _ 5523.47 DCOD 5 JET VEL 44 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY I TIME SUMMARY Start Fi nish Hours • - .tion Detail Dail Cumulative 6:00 7:00 1.00 Back ream F/9065-9068, W• • ht spots, no returns RU /RD 137.00 • t P/U-125k, 41gpm, 13spm, • • 18-22, 230psi Drilling 120.75 7:00 10:45 3.75 Work Pipe, 9090-9094 Service /Re•air Rio 10.50 to • • 0-75k, work • • 9058-9087. Surve s 0.00 Mix •• •.. 87 bbl LCM pill and prep to use well cmndr Trios 14.50 148.25 10:45 11:00 0.25 Drop 1st Well Commander ball down hole to open tool. • Change BHA 31.25 at 68 psi - d pressure up to 2000 • o open tool. Casing 40.25 11:00 13:30 2.50 Pick up 3 stands and RIH to bottom F/ 9094-9478 Cementing 14.00 13:30 16:00 2.50 Drop 2nd Well Cmndr ball •• downhole for 100% flow out Lo.Gino 0.00 cmndr. Rot pipe 45rpm, • • • e F/9445-9381, pressure to NU /ND Test 55.50 to seat ball, circ btms up at • • • DST /Core 0.00 _ 16:00 17:00 1.00 Pump 100ppb, 85bbl LCM • ill & chase w/ 2000 stks, 210gpm Well Control 0.00 17:00 23:00 6.00 Drop 3rd ball to close well cmndr •• • r flow. WOO 0.00 Back ream F/ :••: , P/U-210k, 263gpm, 65rpm. P &A 0.00 23:00 3:115 4.25 Circ - • condition mud • 8615, 550gpm, • pipe Safet Meetings 6.00 3:15 4:30 1.25 RIH on - • 8068-9478. N• tight spots, • " •••• Drillin• Cement 4.00 4:30 6:00 1.50 Circ bottoms u• - • drill ahead 9478-9524 Circ /Other 9.50 32.50 _ 24.00 See notes below in Remarks & Comments section: TOTAL 24.00 600.00 BOTTOM HOLE ASSEMBLY QTY T ITEM CONN DOWN CONN UP VENDOR • • I.D. GAUGE NECK LENGTH TOTAL LENGT1 1 HCR503ZX PDC Bit - 4 1/2 Reg B HCC 8 1/2 - 1.07 1.07 - 2 Motor - Steerable 1.2 Degree 4 1/2 RegB 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 5/8 2 3/4 - - 2.87 41.29 6 Stop /On Track /Stab /BCPM 4 1/2 IF P T2 B BHI 7 - 8 3/8 1.45 33.96 75.25 7 ORD /CCN /Stop Sub T2 P 4 1/2 IF B BHI 6 3/4 2 1/2 8 3/8 2.50 21.53 96.78 8 NM Filter Sub 4 1/2 IF P 4 1/2 IF B BHI 6 7/8 2 13/16 - - 5.29 102.07 _ 9 NM X -Over 4 1/2 IF P 4 1/2 H90 B BHI 6 3/4 2 13/16 - - 2.05 _ 104.12 10 NMCSDP (Loading Sources) 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 13/16 6 3/8 2.20 30.15 134.27 11 NMCSDP 4 1/2 H90 P _ 4 1/2 H90 B BHI 5 2 7/8 6 5/16 1.97 29.26 163.53 12 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 1/8 2.71 30.00 13 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 9/19 1.95 30.34 14 X -Over Steel Sub 4 1/2 H90 P 4 1/2 IF B BHI 6 3/8 2 7/8 - - 1.73 225.60 15 Well Comrnander 4 1/2 IF P 4 1/2 1E13 MI Swaco 6 7/8 3 3/8 - - 12.84 16 4x HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 - 118.57 17 Jars 4 1/2 IF P 4 1/2 IF B _ WFD 6 1/8 2 11/16 - 1.63 31.72 18 19 x HWDP 1 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 - 567.83 956.56 BHA TOTAL LENGTH 956.56 956.56 REMARKS & COMMENTS DIESEL Work through loss circulation and tight hole conditions, while back reaming to shoe. No returns. Diesel on Location 1,709 Pump 70 bbl Safe -Garb Loss Circulation pill A 9,251'. Losing 2 bpm A 9251' down to 3/4 bpm (7a 9074' Diesel Used Last 24 1,620 Building and maintaining volume with dewatered supply and mud sent to Swaco dewatering plant. Diesel Received 6,262 S.P.R. 1 - 2 bpm, 230 psi, 3 bpm, 300 psi. S.P.R. 2 - 2 bpm, 240 psi, 3 bpm, 310 psi. TOTAL DIESEL 6,351 • 0 CINGSA - DAILY DRILLING REPORT Date: 10/17/2011 Well Name CLU Storage 4 BHA #: 4 DSM Days: Steve Ratcliff Current Depth: 10069 Location: Kenai, AK Tar 10219 Cell Phone: (907) 230 - 9902 Depth ig DSM Ftg /24hrs. 545 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E Nights: s: Stephen Ratcliff Days Since Spud 19 Present Drill ahead FI 10069' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FTIHR 1 16" HCC VM -1 5198829 3x18 1x16 118 2480 2362 +- wt- ae-1-n-td 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 * *w^- a- x- 1-no-td 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 #DIV /0! CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct PUMP #1 IPUMP #2 MUD PROPERTIES: IMUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL (50 Ib bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 52 S. ASH (50 Ib bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 46/30 CAUSTIC 4 37.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 24/16 LOTORQ 2979.00 SPM 136 SPM 136 R6 /R3 5/4 ASPHASOL SUPREME 22 207.00 GPS 5.87 GPS 5.87 PV 16 CONQOR 404 3.00 GPM 352 GPM 352 YP 14 SODIUM METABISULFITE 24.00 PSI 1216 PSI 1216 GELS 5/9/11 FLOWZAN 20 77.00 BTMS UP MIN 59.6 BTMS UP MIN 59.6 API FLUID LOSS 4.1 PAC 31 102.00 TOT CIR MIN 148.5 TOT CIR MIN 148.5 CAKE APH /HT 1/ CF -DESCO II 33.00 AVDP: 210.00 AVDP: 210.00 SOLIDS 6 MYACIDE GA25 4.00 AVDC: 253.60 AVDC: 253.60 OIL/WATER 3/91 SCREEENKLEEN 138.00 AVDC: - AVDC: - SAND .2 KLA - GARD 21.00 DRILL STRING & HYDRAULICS PH 9.2 POTASSIUM CHLORIDE 114 648.00 STRING WT. 125 WOB 4 Pf /Mf .20/1.20 SAFE -GARB 40 256 665.00 PICK UP 188 RPM 75 CHLORIDES 16000 SODIUM BICARBONATE 76.00 SLACK OFF 78 TFA 0.8399 CA 240 BARITE 415.00 MAX PULL 210 HHP 147 VOL. PIT - (BBL) 578 RESINEX 100.00 DPOD 5 PRESS DROP 3 HOLE - (BBL) 666 SOLIDS (BBLS hauled by AIMM) 63 5586.47 DCOD 5 JET VEL 30 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description [Detail 1 Daily 1 Cumulative 6:00 9:30 3.50 Drill ahead F/ 9524 -9764. Back ream each stand 2 times. RU /RD 137.00 P /U -182k, S /O -72k, Rot -120k, 530gpm, 2200psi, 75rpm Drilling 10.25 131.00 9:30 10:00 0.50 No returns, Circ & Condition, pump 35bb1 of 50ppb LCM pill, Service /Repair Rig 10.50 chase with 174 bbl mud. Total loss - 81 bbls. Surveys 0.00 10:00 12:15 2.25 Pull 2 stands, work pipe, and wait on LCM pill to set. Trips 148.25 12:15 13:30 1.25 Activate Well Commander Tool with steel balls, work pipe. Change BHA 31.25 13:30 14:45 1.25 Pump 70bbl, 50ppb LCM pill downhole, chase with 178 bbl. Casing 40.25 14:45 17:00 2.25 Work pipe, let LCM pill set. Fill hole, build volume in pits. Cementing 14.00 17:00 18:00 1.00 Work pipe, drop ball to close Well commander, monitor loss. Logging 0.00 18:00 19:30 1.50 Break circulation, work pipe F/9477 -9450, lost 40 bbls. NU /ND Test 55.50 19:30 21:30 2.00 Pump 40 bbl, 50 ppb LCM Safe Carb pill and let pill sit DST /Core 0.00 21:30 1:00 3.50 Drill ahead F/ 9765'- 9900'. P /U -186k, S/O -72k, 350gpm, Well Control 0.00 75rpm, 1280psi, 75fph, 60 -80 bbl loss per hour. Build volume WOO 0.00 while drilling and maintain mud weight and properties. P &A 0.00 1:00 2:45 1.75 Pump 40 bbl, 50 ppb LCM Safe Carb pill at 9900' and let sit Safety Meetings 6.00 2:45 6:00 3.25 Break circ and drill ahead F/ 9900'- 10069' Drilling Cement 4.00 Monitor losses and build volume to balance. See notes below. Circ /Other 13.75 46.25 24.00 See notes below in Remarks & Comments section: TOTAL 24.00 624.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I CONN DOWN I CONN UP 1 VENDOR ( O.D. 1 I.D. 1 GAUGE 1 NECK I LENGTH ]TOTAL LENGTH 1 HCR503ZX PDC Bit - 4 1/2 Reg B - HCC 8 1/2 - - - 1.07 1.07 2 Motor - Steerable 1.2 Degree 4 1/2 RegB 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 5/8 2 3/4 - - 2.87 41.29 6 Stop /On Track/Stab /BCPM 4 1/2 IF P T2 B BHI 7 - 8 3/8 1.45 33.96 75.25 7 ORD /CCN /Stop Sub T2 P 4 1/2 IF B BHI 6 3/4 _ 2 1/2 8 3/8 2.50 21.53 96.78 8 NM Filter Sub 4 1/2 IF P 4 1/2 IF B BHI 6 7/8 2 13/16 - - 5.29 102.07 9 NM X -Over 4 1/2 IF P 4 1/2 H90 B BHI 6 3/4 2 13/16 - - 2.05 104.12 10 NMCSDP (Loading Sources) 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 13/16 6 3/8 2.20 30.15 134.27 11 NMCSDP 4 1/2 H90 P _ 4 1/2 H90 B BHI 5 2 7/8 6 5/16 1.97 29.26 163.53 12 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 1/8 2.71 30.00 193.53 13 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 9/19 1.95 30.34 223.87 14 X -Over Steel Sub 4 1/2 H90 P 4 1/2 IF B BHI 6 3/8 2 7/8 - - 1.73 225.60 15 Well Commander 4 1/2 IF P 4 1/2 IF 6 MI Swaco 6 7/8 3 3/8 - - 12.84 238.44 16 4x HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 - 118.57 357.01 17 Jars 4 1/2 IF P 4 1/2 IF B WFD 6 1/8 2 11/16 - 1.63 31.72 388.73 18 19 x HWDP 4 1/2 IF P 4 1/2 IF B Nabors _ 5 3 6 1/2 - 567.83 956.56 BHA TOTAL LENGTH 956.56 956.56 REMARKS & COMMENTS DIESEL Loss circulation issues. Pump 40 bbl LCM pills at 50 pounds per bbl to address lost circulation. Diesel on Location 6,351 LCM pills of Safe Carb, G -Seal, and KCL combinations used per MI Swaco reccomendation. Diesel Used Last 24 1,175 Averaging 60 bbl per hour losses. Build mud volume with rig water to off set losses to formation. Diesel Received 0 S.P.R. 1 - 2 bpm, 230 psi, 3 bpm, 300 psi. S.P.R. 2 - 2 bpm, 240 psi, 3 bpm, 310 psi. TOTAL DIESEL_ 5,176 • i CINGSA - DAILY DRILLING REPORT Date: 10/18/2011 Well Name CLU Storage 4 BHA #: 4 DSM Days: Steve Ratcliff Current Depth: 10500 Location: Kenai, AK Target 10500 Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 431 Field /Pool: Cannery Loop / Sterling C ContRactor: Nabors Alaska -Rig 105 E N i g h ts : Stephen Ratcliff Days Since Spud 40 Present Back Ream F/ 10235' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 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 118 2480 2362 1 1 wt ae-i n -1d 15.5 152.39 2 12 1/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1 -1- ,a- x- -no- 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 #DIV /0! CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE Conductor: 20" 133# X -56 Welded _ 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.1 GEL (50 lb bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 47 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 44/31 CAUSTIC 4 41.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 23/17 LOTORQ 330 3309.00 SPM 136 SPM 136 R6 /R3 5/4 ASPHASOL SUPREME 46 253.00 GPS 5.87 GPS 5.87 PV 13 CONQOR 404 3.00 GPM 352 GPM 352 YP 18 SODIUM METABISULFITE 24.00 PSI 1139 PSI 1139 GELS 5/10/12 FLOWZAN 44 121.00 1 BTMS UP MIN 52.6 BTMS UP MIN 52.6 API FLUID LOSS 6 PAC 39 141.00 TOT CIR MIN 138.5 TOT CIR MIN 138.5 CAKE APH /HT 1/ CF -DESCO II 33.00 AVDP: 210.00 AVDP: 210.00 SOLIDS 4.5 MYACIDE GA25 4.00 AVDC: 253.60 AVDC: 253.60 OIL /WATER 3/93 SCREEENKLEEN 138.00 AVDC: AVDC: SAND .25 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 9.2 POTASSIUM CHLORIDE 228 876.00 STRING WT. 125 WOB 4 Pf /Mf .10/1.10 SAFE -CARB 40 665.00 PICKUP 188 RPM 75 CHLORIDES 16500 SODIUM BICARBONATE 76.00 SLACK OFF 78 TFA 0.8399 CA 160 BARITE 415.00 MAX PULL 210 HHP 147 VOL. PIT - (BBL) 576 RESINEX 20 120.00 DPOD 5 PRESS DROP 3 HOLE - (BBL) 718 SOLIDS (BBLS hauled by AIMM) 100 5686.47 DCOD 5 JET VEL 30 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours I Description 'Detail 1 Daily 1 Cumulative 6:00 9:30 3.50 Drill ahead F/ 10069'- 10242'. Back ream each stand 2 times. RU /RD 137.00 P /U -186k, S /O -72k, Rot -112k, 350gpm, 2200psi, 75rpm Drilling 8.00 139.00 9:30 12:00 2.50 Short trip /Back ream F/ 10242 -9765, no hole problems. Service /Repair Rig 10.50 12:00 16:30 4.50 Drill ahead F/ 10242 - 10500, 75rpm, 350gpm, 1150 -1350 psi Surveys 0.00 back ream each stand 2 times, no hole propblems. Trips 14.00 162.25 16:30 18:00 _ 1.50 Short trip /Back ream F/ 10500 - 10242, no hole problems. Change BHA 31.25 75rpm, 350gpm, 1180psi, Tq -12k, RIH to 10500 on elevators Casing 40.25 18:00 1:45 7.75 Back ream F/ 10500 -8608, P /U -187k, S /O -75k, Rot -114k, Cementing 14.00 Max Pull -200k, 75rpm, 350gpm. Work tight spot at 9465'. Logging 0.00 Monitor loss /gain. NU /ND Test 55.50 1:45 3:00 1.25 Circulate bottoms up, monitor losses /gains. DST /Core 0.00 3:00 5:15 2.25 RIH on elevators F/ 8608 -10500 Well Control 0.00 5:15 Back ream F/ 10500 - 10235, P /U -187k, S/O -75k, Rot -114k, WOO 0.00 75rpm, 350gpm, 1180psi, Tq -12k. P &A 0.00 Safety Meetings 6.00 Drilling Cement 4.00 Circ /Other 1.25 47.50 23.25 See notes below in Remarks & Comments section: TOTAL 23.25 647.25 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I CONN DOWN 1 CONN UP I VENDOR 1 O.D. 1 I.D. 1 GAUGE I NECK 1 LENGTH (TOTAL LENGTH 1 HCR503ZX PDC Bit - 4 1/2 Reg B HCC 8 1/2 - - - 1.07 1.07 2 Motor - Steerable 1.2 Degree 4 1/2 RegB 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 5/8 2 3/4 - - 2.87 41.29 6 Stop /On Track/Stab /BCPM 4 1/2 IF P T2 B BHI _ 7 - 8 3/8 1.45 33.96 75.25 7 ORD /CCN /Stop Sub T2 P 4 1/2 IF B BHI 6 3/4 2 1/2 8 3/8 2.50 21.53 96.78 8 NM Filter Sub 4 1/2 IF P 4 1/2 IF B BHI 6 7/8 2 13/16 - - 5.29 102.07 9 NM X -Over 4 1/2 IF P 4 1/2 H90 B BHI 6 3/4 2 13/16 - - 2.05 104.12 10 NMCSDP (Loading Sources) 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 13/16 6 3/8 2.20 30.15 134.27 11 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 5/16 1.97 29.26 163.53 12 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 1/8 2.71 30.00 193.53 13 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 9/19 1.95 30.34 223.87 14 X -Over Steel Sub 4 1/2 H90 P 4 1/2 IF B BHI 6 3/8 2 7/8 - - 1.73 225.60 15 Well Commander 4 1/2 IF P 4 1/2 IF B MI Swaco 6 7/8 3 3/8 - - 12.84 238.44 16 4x HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 - 118.57 357.01 17 Jars 4 1/2 IF P 4 1/2 IF B WFD 6 1/8 2 11/16 - 1.63 31.72 388.73 18 19 x HWDP 4 1/2 IF P 4 1/2 IF B Nabors _ 5 3 6 1/2 - 567.83 956.56 BHA TOTAL LENGTH 956.56 956.56 REMARKS & COMMENTS DIESEL No accidents or near misses. Diesel on Location 5,176 Diesel Used Last 24 1,180 Diesel Received 0 S.P.R. 1 - 2 bpm, 230 psi, 3 bpm, 300 psi. S.P.R. 2 - 2 bpm, 240 psi, 3 bpm, 310 psi. TOTAL DIESEL_ 3,996 - • • CINGSA - DAILY DRILLING REPORT Date: 10/19/2011 Well Name CLU Storage 4 BHA #: DSM Days: Steve Ratcliff Current Depth: 10500 Location: Kenai, AK Target 10500 Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C conRtractor: Nabors Alaska -Rig 105 E N ghts: Stephen Ratcliff Days Since Spud 21 Present Wireline Log Hole F/ 8620' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Operation: DRILLING DATA BIT# SIZE MFG TYPE SER# JETS IN OUT FEET BIT GRADE TOTAL HOURS F1 /HR 1 16" HCC VM -1 5198829 3x18 1x16 118 2480 2362 1-wt-de -.1-td 15.5 152.39 2 12 1/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1 - - x- hne-td 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 10500 1881 + - 7- bt- g- x - 2 -no -td 21.0 89.57 i CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD DEPTH 1 CEMENT COMPANY DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct PUMP #1 PUMP #2 MUD PROPERTIES: IIMUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.2 GEL (50 Ib bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 50 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 46/32 CAUSTIC 16 57.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 25/17 LOTORQ 3309.00 SPM 136 SPM 136 R6 /R3 6/4 ASPHASOL SUPREME 253.00 GPS 5.87 GPS 5.87 PV 14 CONQOR 404 3.00 GPM 352 GPM 352 YP 18 SODIUM METABISULFITE 24.00 PSI 1139 PSI 1139 GELS 6/9/11 FLOWZAN 26 147.00 BTMS UP MIN 52.6 BTMS UP MIN 52.6 API FLUID LOSS 6.1 PAC 141.00 TOT CIR MIN 138.5 TOT CIR MIN 138.5 CAKE APH /HT 1/ CF -DESCO II 33.00 AVDP: 210.00 AVDP: 210.00 SOLIDS 5 MYACIDE GA25 5 9.00 AVDC: 253.60 AVDC: 253.60 OIL/WATER 3/93 SCREEENKLEEN 138.00 AVDC: AVDC SAND .25 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 9.2 POTASSIUM CHLORIDE 876.00 STRING WT. 125 WOB 4 Pf /Mf .10/.70 SAFE -CARE 40 44 709.00 PICK UP 188 RPM 75 CHLORIDES 16000 SODIUM BICARBONATE 76.00 SLACK OFF 78 TFA 0.8399 CA 160 BARITE 3 418.00 MAX PULL 210 HHP 147 VOL. PIT - (BBL) 784 RESINEX 120.00 DPOD 5 PRESS DROP 3 HOLE - (BBL) 413 SOLIDS (BBLS hauled by AIMM) 70 5756.47 DCOD 5 JET VEL 30 API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY TIME SUMMARY Start 1 Finish Hours J Description Detail Daily 1 Cumulative 6:00 10:45 4.75 Back ream F/ 10500 - 10235, P /U -187k, S /O -75k, Rot -114k, RU /RD 137.00 75rpm, 350gpm, 1180psi, Tq -12k. Drilling 139.00 10:45 12:45 2.00 Circulate at shoe at 1100 psi, check for flow, monitor losses. Service /Repair Rig 10.50 12:45 13:15 0.50 Drop ball down hole to open well commander tool. Surveys 0.00 13:15 13:30 0.25 Pump slug down hole through well commander. Trips 12.25 174.50 13:30 21:00 7.50 POH F/ 8608' at shoe to surface. Change BHA 5.25 36.50 21:00 22:15 1.25 Lay down directional BHA Casing 40.25 22:15 22:30 0.25 Hold PJSM for removing nuclear sources Cementing 14.00 22:30 2:15 3.75 Lay down directional BHA Logging 3.75 3.75 2:15 2:30 0.25 Hold PJSM with Baker Atlas Wireline and Nabors Rig Crews NU /ND Test 55.50 2:30 4:15 1.75 Rig up Baker Atlas wireline equipment to RIH for logging DST /Core 0.00 4:15 5:30 1.25 RIH with Baker Atlas wireline tools to 8620' to log hole Well Control 0.00 5:30 6:00 0.50 POH and log up F/ 8620'. WOO 0.00 P &A 0.00 Safety Meetings 6.00 Drilling Cement 4.00 Circ /Other 2.75 50.25 24.00 See notes below in Remarks & Comments section: TOTAL 24.00 671.25 BOTTOM HOLE ASSEMBLY QTY ITEM CONN DOWN CONN UP VENDOR O.D. I.D. GAUGE NECK LENGTH TOTAL LENGTh 1 HCR503ZX PDC Bit - 4 1/2 HCC 8 1/2 - - - _ 1.07 1.07 2 Motor - Steerable 1.2 Degree 4 1/2 RegB 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 5/8 2 3/4 - - 2.87 41.29 6 Stop /On Track/Stab /BCPM 4 1/2 IF P T2 B BHI 7 - 8 3/8 1.45 33.96 75.25 7 ORD /CCN /Stop Sub T2 P 4 1/2 IF B BHI 6 3/4 2 1/2 8 3/8 2.50 21.53 96.78 8 NM Filter Sub 4 1/2 IF P 4 1/2 IF B BHI 6 7/8 2 13/16 - - 5.29 102.07 9 NM X -Over 4 1/2 IF P 4 1/2 H90 B BHI 6 3/4 2 13/16 - - 2.05 104.12 10 NMCSDP (Loading Sources) 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 13/16 6 3/8 2.20 30.15 134.27 11 NMCSDP 4 1/2 H90 P 4 1/2 H90 B BHI 5 2 7/8 6 5/16 1.97 29.26 163.53 12 NMCSDP 4 1/2 H90 P 4 1/2 H90 B _ BHI 5 2 7/8 6 1/8 2.71 30.00 193.53 13 NMCSDP 4 1/2 H90 P 4 1/2 H90 B _ BHI 5 2 7/8 6 9/19 1.95 30.34 223.87 14 X -Over Steel Sub 4 1/2 H90 P 4 1/2 IF B BHI 6 3/8 2 7/8 - - 1.73 225.60 15 Well Commander 4 1/2 IF P 4 1/2 IF B MI Swaco 6 7/8 3 3/8 - - 12.84 238.44 16 4x HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 - 118.57 357.01 17 Jars 4 1/2 IF P 4 1/2 IF B _ WFD 6 1/8 2 11/16 - 1.63 31.72 388.73 18 19 x HWDP 4 1/2 IF P 4 1/2 IF B Nabors 5 3 6 1/2 - 567.83 956.56 BHA TOTAL LENGTH 956.56 956.56 REMARKS & COMMENTS DIESEL No accidents or near misses. Diesel on Location 3,996 Contacted AOGCC and spoke with Lou Grimaldi on BOPE test at 18:00. AOGCC opted to grant waiver Diesel Used Last 24 _ 1,509 for a full BOPE test and waived witness for testing after change out to 5" X 7" Var Rams. Diesel Received _ 2,525 S.P.R. 1 - 2 bpm, 230 psi, 3 bpm, 300 psi. S.P.R. 2 - 2 bpm, 240 psi, 3 bpm, 310 psi. TOTAL DIESEL 5,012 • • CINGSA - DAILY DRILLING REPORT Date: 10/20/2011 Well Name CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 10500 Location: Kenai, AK Tar 10500 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E Nights: S tephen Ratcliff Days Since Spud Y2 Present RIH with 7" Liner From 8588' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 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 118 2480 2362 ,- wt de -- n - td 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1- 1- w t-a- x- -no-td 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 10500 1881 1- 7- m- g- x- 2 -no -td 21.0 89.57 CASING 1 SIZE 1 WEIGHT J GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Liner 7" 26# L -80 Vam Top Tubing 7" 26# L -80 Vam Top PUMP #1 )PUMP #2 IMUD PROPERTIES: (MUD ADDITIVES: Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.3 GEL (50 Ib bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 52 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 45/31 CAUSTIC 57.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 25/17 LOTORQ 3309.00 SPM 136 SPM 136 R6 /R3 5/4 ASPHASOL SUPREME 253.00 GPS 5.87 GPS 5.87 PV 14 CONQOR 404 3.00 GPM 352 GPM 352 YP 17 SODIUM METABISULFITE 24.00 PSI 1139 PSI 1139 GELS 5/9/11 FLOWZAN 6 153.00 BTMS UP MIN 52.6 BTMS UP MIN 52.6 API FLUID LOSS 6.1 PAC 3 144.00 TOT CIR MIN 138.5 TOT CIR MIN 138.5 CAKE APH /HT 1/ CF -DESCO II 33.00 AVDP: 210.00 AVDP: 210.00 SOLIDS 3 MYACIDE GA25 9.00 AVDC: 253.60 AVDC: 253.60 OIUWATER 3/95 SCREEENKLEEN 138.00 AVDC: AVDC: SAND .25 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 9.8 POTASSIUM CHLORIDE 25 901.00 STRING WT. 60 WOB Pf /Mf .10/1.20 SAFE -CARE 40 709.00 PICKUP 68 RPM CHLORIDES 17000 SODIUM BICARBONATE 76.00 SLACK OFF 54 TFA CA 160 BARITE 418.00 MAX PULL 70 HHP VOL. PIT -(BBL) 414 RESINEX 120.00 DPOD 5 PRESS DROP HOLE - (BBL) 755 SOLIDS (BBLS hauled by AIMM) 5756.47 DCOD 5 JET VEL API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description Detail 1 Daily 1 Cumulative 6:00 8:00 _ 2.00 POH and log up F/ 8620' - 5000'. RU /RD 137.00 8:00 9:00 _ 1.00 R/D Baker Atlas Logging Tools and clear floor. Drilling 139.00 9:00 10:30 _ 1.50 Change out rams for 5" X 7" VAR Rams Service /Repair Rig 10.50 10:30 13:00 2.50 Test BOP's - 5X7 Var and door seals with 5" test joint. Surveys 0.00 200 psi low, 2500 psi high, test pass. P/U 7" Test joint and Trips _ 174.50 test 250 psi low, 2500 psi high, test pass. L/D test joint, Change BHA 36.50 install 9 1/8" wear bushing and fill hole. Casing _ 17.00 57.25 _ 13:00 15:00 2.00 P/U cement rotary head, R/U casing tools, PJSM for liner. Cementing 14.00 15:00 16:00 1.00 M/U shoe track float assembly. Fill & check float equip, ok. Logging 3.00 6.75 16:00 20:30 _ 4.50 Run 7" liner to 2044' with centralizers on each jt, fill 5 stands. NU /ND Test _ 4.00 59.50 20:30 22:00 _ 1.50 P/U liner hanger and ZXP packer. Install wiper plug, inspect. DST /Core _ - 0.00 22:00 23:00 _ 1.00 RIH 1 joint and circulate liner volume, 80 bbls, 235gpm, Well Control 0.00 190 psi, P /U -68k, S /O -54k. WOO 0.00 23:00 6:00 7.00 RIH with 7" liner on 5" drill pipe F/ 2073 - 8588' P &A 0.00 Safety Meetings 6.00 Drilling Cement 4.00 Circ /Other 50.25 24.00 See notes below in Remarks & Comments section: TOTAL 24.00 695.25 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I.D. I GAUGE I NECK LENGTH (TOTAL LENGTh 1 000 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 13 0.00 14 0.00 BHA TOTAL LENGTH o.00 o.00 REMARKS & COMMENTS DIESEL No accidents or near misses. Diesel on Location 5,012 68 barrel loss from 10/19 -12:00 noon to 10/20 -12:00 midnight (12 hour period) Diesel Used Last 24 1,086 Diesel Received 0 S.P.R. 1 - 2 bpm, 120 psi, 3 bpm, 140 psi. S.P.R. 2 - 2 bpm, 120 psi, 3 bpm, 140 psi. TOTAL DIESEL 3,927 • CINGSA - DAILY DRILLING REPORR Date: 10/21/2011 Well Name CLU Storage 4 BHA #: - DsM Days: John Nicholson Current Depth: 10500 Location: Kenai, AK Tar 10500 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor Nabors Alaska -Rig 105 E N q Stephen Ratcliff Days Since Spud 23 Present POH for Polish Mill Run Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 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 118 2480 2362 - Wt-aa - -n-td 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 , - , - wt-e.x- , -"o-td 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 10500 1881 1 7 x 2 - no - td 21.0 89.57 CASING 1 SIZE WEIGHT 1 GRADE 1 THREAD DEPTH CEMENT COMPANY 1 DATE 1 ' Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Liner 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct Tubing 7" 26# L -80 Vam Top - - PUMP #1 PUMP #2 MUD PROPERTIES: IMUD ADDITIVES: Daily 'Cumulative PUMP MANF Gardner Denver, PUMP MANF Gardner Denver WEIGHT 9.4 GEL (50 lb bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 52 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600iR300 43/30 CAUSTIC 57.00 STOKE LNGTH 9 STOKE LNGTH 9 R200iR100 25/16 LOTORQ 3309.00 SPM 136 SPM 136 R6 /R3 5/3 ASPHASOL SUPREME 253.00 GPS 5.87 GPS 5.87 PV 13 CONQOR 404 3.00 GPM 352 GPM 352 YP 17 SODIUM METABISULFITE 24.00 PSI 950 PSI 950 GELS 4/8/10 FLOWZAN 153.00 BTMS UP MIN 52.6 BTMS UP MIN 52.6 API FLUID LOSS 5.8 PAC 144.00 TOT CIR MIN 138.5 TOT CIR MIN 138.5 CAKE APH /HT 1/ CF -DESCO II 33.00 AVDP: AVDP: SOLIDS 3 MYACIDE GA25 3 12.00 AVDC: AVDC: OIUWATER 3/95 SCREEENKLEEN 138.00 1 AVDC: AVDC: SAND .25 KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 11.2 POTASSIUM CHLORIDE 901.00 STRING WT. 115 WOB - Pf /Mf 1.10/1.90 SAFE -CARB 40 709.00 I PICKUP 130 RPM 25 CHLORIDES 17000 SODIUM BICARBONATE 76.00 SLACK OFF 90 TFA - CA 360 BARITE 418.00 MAX PULL 150 HHP - VOL. PIT - (BBL) 107 RESINEX 120.00 DPOD 5 PRESS DROP - HOLE - (BBL) 664 SOLIDS (BBLS hauled by AIMM) 171 5927.47 DCOD 5 JET VEL - API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY TIME SUMMARY Start I Finish Hours Description Detail 1 Daily Cumulative 6:00 6:30 0.50 Make up TD cement head and lay down RU /RD 137.00 6:30 7:30 1.00 Circulate and condition mud at 8559' (9 5/8 shoe). Drilling 139.00 7:30 11:30 4.00 Continue running 7" liner F/ 8559'. Tag tight spot at 8694'. Service /Repair Rig 3.00 13.50 Wash down to 8720' W/O returns, work string and regain Surveys 0.00 circ. Continue running 7" liner and pump at 3bbl per min Trips 6.00 180.50 to 10,473 W/O any losses, 3bbls per min 200psi Change BHA 36.50 11:30 13:00 1.50 P/U TD cement head and rig up Casing 4.50 61.75 13:00 15:00 2.00 Circ /cond, work pipe. Set liner bottom - 10,498'. Liner Top at Cementing 7.00 21.00 8424'. Circ bottoms up, 130gpm, 350psi, P /U -175k, S /O -75k. Logging 6.75 15:00 16:30 1.50 PJSM, PT lines 1000 /4800psi. Displace 36bb1, 10.5# mud _ NU /ND Test 59.50 push. SLB pump 68bb1, 14.1# Flexstone cement. Drop wiper DST /Core 0.00 plug & pump 5bbl water @ 620psi. Well Control 0.00 16:30 18:00 1.50 Displace plug w/ 213.3bbls, bump plug to 2343psi. WOO 0.00 Set liner packer w/ 80k dwn, confirm w/ rotation, 26rpm, P &A 0.00 tq. 5 -6k, Pressure to 4000psi to release. Pump to 500psi for Safety Meetings 6.00 positive pressure. P/U 25' & roll pumps w/ pressure decrease Drilling Cement 4.00 CIP at 17:45 Oct 2,2011 . Lost between 7 -10 bbls. Circ /Other 3.50 53.75 18:00 19:30 1.50 Cir 8424', 352gpm, 950psi. Saw cement returns. 19:30 20:00 0.50 R/D cement TD head, circulating lines, and valves 20:00 22:00 2.00 Install wiper ball, CBU, 352gpm, 950psi, Pump dry job. 22:00 23:30 1.50 POH F/ 8420' -6511' 23:30 1:30 2.00 L /D, B/O single & 10' pup on TD head. Clear rig floor 1:30 6:00 4.50 POH F/ 6511'- surface. 24.00 See notes below in Remarks & Comments section: TOTAL 24.00 719.25 BOTTOM HOLE ASSEMBLY QTY 1 ITEM CONN DOWN CONN UP I VENDOR I O.D. I.D. GAUGE NECK LENGTH TOTAL LENGTI- 1 0.00 2 0.00 3 0.00 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 Rig cement line plugged from hose to mezzannine level. Remove and replace with temporary cement line. Diesel on Location 3,926 Liner Setting Depth = 10,498'. See Liner description below. Note: 2bbl cmt returned to SFS. Diesel Used Last 24 _ 838 Top of Liner Packer at 8424'. See Liner description below. Diesel Received 0 S.P.R. 1 - 2 bpm, 120 psi, 3 bpm, 140 psi. S.P.R. 2 - 2 bpm, 120 psi, 3 bpm, 140 psi. TOTAL DIESEL 3,088 0 • I ,, X - - w4. ,k5 , f 1 '.; l :' C:7; 1 # .q ' .4...!.:(.2'.. , 1 wf - 0: 4 :C i YTT` ` " ':; ,'...i. W k" } ' ,, $' ,,"',, 4∎.,^ COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors MEM 24 12.5 300 MI Swaco Mud En.ineer 2 12 24 PRA DSM 2 24 48 MI Swaco Dewaterin. 3 12 36 PRA =EMI 1 1 1 Aimm Vac truck 4 12 48 PRA Geolo • ist 0 24 0 Baker Liner 1 12 12 CINGSA Conrad /Rick 1 1 1 Schlumber.er Cement 4 12 48 Canrig Mud loggers 2 12 24 - TOTAL COUNT 42 TOTAL MAN HOURS 542 FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 133# X -56 Welded Conductor Pipe RT 2467 2467 BTCmod 13.375 68# J -55 BTC mod L- 80 couplings surface casing Intermediate FROM TO LENGTH JOINTS DESCRIPTION 8619.0 8608.0 11.0 - Rathole 8608.0 8606.0 2.1 - 9 5/8" BTC - Davis Lynch 501 Down Jet Float Shoe 8606.0 8525.1 80.9 2 9 5/8" 40# L -80 BTC 8525.1 8523.0 2.1 - 9 5/8" BTC - Davis Lynch SB Float Collar 8523.0 8482.1 40.9 1 9 5/8" 40# L -80 BTC 8482.1 8472.4 9.7 - 9 5/8" 40# L -80 BTC - LTC Pup Joint 8472.4 3406.1 5066.3 123 9 5/8" 40# L -80 BTC 3406.1 3403.8 2.3 - 9 5/8" BTC - Davis Lynch Hydraulic Stage Collar - Type 777 -HY 3403.8 23.5 3380.3 84 9 5/8" 40# L -80 BTC 23.5 20.9 2.6 - 9 5/8" 40# L -80 BTC - LTC Pup Joint 20.9 20.4 0.5 - 9 5/8" BTC - LTC UH -A - Fluted Hangar 20.4 0.0 20.4 - RT to Hanger CINGSA - DAILY DRILLING REPORT Date: 10/22/2011 Well Name . CLU Storage 4 BHA #: DSM Days: John Nicholson Current Depth: 10500 Location: Kenai, AK Tar 10500 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Foot: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E N i M Stephen Ratcliff Days Since Spud 44 Present Lay down 5" drill Pipe Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FIMR 1 16" HCC VM -1 5198829 3x18 1x16 118 2480 2362 1- 1- wt ae- ,- td 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 11- wt e - x - + - "o - ld 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 10500 1881 7- bt- g - x - 2 - „o -td 21.0 89.57 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Liner 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct Tubing 7" 26# L -80 Vam Top 8424' - - PUMP #1 PUMP #2 MUD PROPERTIES: (MUD ADDITIVES: 1 Daily 1Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.6 GEL (50 lb bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 25 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 3/2 CAUSTIC 57.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 1/1 LOTORQ 3309.00 SPM 136 SPM 136 R6 /R3 1/1 ASPHASOLSUPREME 253.00 GPS 5.87 GPS 5.87 PV 1 CONQOR 404 3.00 GPM 352 GPM 352 YP 1 SODIUM METABISULFITE 24.00 PSI 950 PSI 950 GELS 1/1/1 FLOWZAN 153.00 BTMS UP MIN 52.6 BTMS UP MIN 52.6 API FLUID LOSS - PAC 144.00 TOT CIR MIN 138.5 TOT CIR MIN 138.5 CAKE APH /HT - CF -DESCO II 33.00 AVDP: AVDP: SOLIDS 1 MYACIDE GA25 12.00 AVDC: AVDC: OIUWATER /99 SCREEENKLEEN 138.00 AVDC: AVDC: SAND - KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 8.6 POTASSIUM CHLORIDE 112 1013.00 STRING WT. 115 WOB - Pf /Mf .00 /.00 SAFE -CARB 40 709.00 PICK UP 130 RPM 25 CHLORIDES 18000 SODIUM BICARBONATE 76.00 SLACK OFF 90 TFA - CA - BARITE 418.00 MAX PULL 150 HHP - VOL. PIT -(BBL) 622 RESINEX 120.00 DPOD 5 PRESS DROP - HOLE - (BBL) 681 SOLIDS (BBLS hauled by AIMM) 134 6061.47 DCOD 5 JET VEL - API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start i Finish 1 Hours 1 Description 1Detail 1 Daily 1 Cumulative 6:00 7:30 1.50 Continue POH lay down drill pipe (36 joints 5" DP) RU /RD 137.00 7:30 9:30 2.00 RIH with 5" HWDP and POH L/D HWDP 23 joints Drilling 139.00 9:30 11:00 1.50 Make up BOT PBR mill and RIH to 1158' Service /Repair Rig 1.50 15.00 11:00 12:30 1.50 Service rig Repair/ Replace Incoder on draworks Surveys 0.00 12:30 17:00 4.50 Continue to RIH F/ 1158' - 8344' Trips 18.50 199.00 17:00 17:30 0.50 Wash down to top of ZXP @ 8424' Enter seal bore with Change BHA 1.50 38.00 PBR mill down 9' into seal bore, contact no go collar with Casing 61.75 20rpm, 265psi, Set 10k down and clean out seal bore. Cementing 21.00 17:30 18:00 0.50 Circulate at 350 gpm Logging 6.75 18:00 18:30 0.50 Test 9 5/8" X 7" casing and ZXP liner top 2500psi F/ 30min NU /ND Test 0.50 60.00 Test good. DST /Core 0.00 18:30 19:30 1.00 Circulate B/U Well Control 0.00 19:30 6:00 10.50 POH F/ 8424' - 1447' Total of 240jts L/D WOO 0.00 P &A 0.00 Safety Meetings 6.00 Drilling Cement 0.50 4.50 Circ /Other 1.50 55.25 24.00 See notes below in Remarks & Comments section: TOTAL 24.00 743.25 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I CONN DOWN ] CONN UP ( VENDOR O.D. 1 I.D. 1 GAUGE 1 NECK I LENGTH (TOTAL LENGTH 1 0.00 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH 0.00 REMARKS & COMMENTS DIESEL Continue to clean pits and mix 3% brine Diesel on Location 3,088 Perform BOP drill with crew. Diesel Used Last 24 883 Diesel Received 1,606 S.P.R. 1 - 2 bpm, 120 psi, 3 bpm, 140 psi. S.P.R. 2 - 2 bpm, 120 psi, 3 bpm, 140 psi. TOTAL DIESEL 3,811 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Swaco Mud Engineer 2 12 24 PRA DSM 2 24 48 Aimm Vac truck 4 12 48 PRA Safety 1 1 1 Baker Liner 1 12 12 CINGSA Conrad /Rick 1 1 1 Schlumberger Load units 2 6 12 Canrig Mud loggers 2 12 24 - TOTAL COUNT 39 TOTAL MAN HOURS 470 CINGSA - DAILY DRILLING REPORT Date: 10/23/2011 Well Name • CLU Storage 4 BHA #: - DSM Days: John Nicholson Target Current Depth: 10500 Location: Kenai, AK 10500 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 Since Spud Y5 Present Landing 7" Tubing Rig Phone: (907) 398 - 3156 Cell Phone: (281) 914 - 6250 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 118 2480 2362 * wt aa i - td 15.5 152.39 2 121/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1- 1- w<-a-x- ,-oo- 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 10500 1881 1- 7- bt1 -x -2 no -td 21.0 89.57 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Liner 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct Tubing 7" 26# L -80 Vam Top 8424' - - PUMP #1 PUMP #2 'MUD PROPERTIES: MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.6 GEL (50 lb bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 25 S. ASH (50 Ib bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 3/2 CAUSTIC 57.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 1/1 LOTORQ 3309.00 SPM - SPM - R6 /R3 1/1 ASPHASOL SUPREME 253.00 GPS - GPS - PV 1 CONQOR 404 3.00 GPM - GPM - YP 1 SODIUM METABISULFITE 24.00 PSI - PSI - GELS 1/1/1 FLOWZAN 153.00 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS - PAC 144.00 TOT CIR MIN - TOT CIR MIN - CAKE APH /HT - CF -DESCO II 33.00 AVDP: AVDP: SOLIDS 1 MYACIDE GA25 12.00 AVDC: AVDC: OIL/WATER /99 SCREEENKLEEN 138.00 AVDC: AVDC: SAND - KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 8.6 POTASSIUM CHLORIDE 73 1086.00 STRING WT. - WOB - Pf /Mf .00 /.00 SAFE -CARB 40 709.00 PICK UP - RPM - CHLORIDES 18000 SODIUM BICARBONATE 76.00 SLACK OFF - TFA - CA - BARITE 40 458.00 MAX PULL - HHP VOL. PIT - (BBL) 602 RESINEX 120.00 DPOD - PRESS DROP - HOLE -(BBL) 667 SOLIDS (BBLS hauled by AIMM) 6061.47 DCOD - JET VEL - API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description (Detail 1 Daily 1 Cumulative 6:00 7:30 1.50 Continue to POH and L/D drill pipe, total of 271 jts L/D RU /RD 137.00 7:30 8:00 0.50 Make up test joint. Pull wear bushing Drilling 139.00 8:00 10:30 2.50 Change over to long bails, install cement hose, rig up Wfrd Service /Repair Rig 2.50 17.50 tubing handling tools. Hold PJSM reguarding tubing run Surveys 0.00 10:30 11:00 0.50 P/U BOT 7" seal assemby & pup, make up to 7" Tubing Jt. Trips 1.50 200.50 11:30 14:00 2.50 Run top 2 8 t ubing to 1394' Change BHA 38.00 14:00 16:30 2.50 Repair rig, Trouble shoot and repair Skate pipe handling Casing 20.00 81.75 _ unit (Hydraulic leak - C/O fittings on feed arms) Cementing 21.00 16:30 4:30 12.50 Continue to RIH w/ 7" tubing F/ 1394' -8424' Total of 205jts Logging 6.75 7" L -80vam top 26# Tubing ran with SSSV set at 157' NU /ND Test 60.00 4:30 5:30 1.00 Space out tubing with seal assembly 2.7' to no go. DST /Core 0.00 5:30 6:00 0.50 Rig up to displace annulus with 8.6 KCL. Well Control 0.00 WOO 0.00 P &A 0.00 Safety Meetings 6.00 Drilling Cement 4.50 Circ /Other 55.25 24.00 See notes below in Remarks & Comments section: TOTAL 24.00 767.25 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I CONN DOWN I CONN UP I VENDOR 1 O.D. I I.D. I GAUGE I NECK ] LENGTH 'TOTAL LENGTI- 1 0.00 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 _ 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH 0.00 REMARKS & COMMENTS DIESEL Hold good PJSM's. Diesel on Location 3,813 No accidents or incidents. Diesel Used Last 24 929 Space out seal assembly with 2.7 to no go. Into ZXP seal bore Diesel Received 0 TOTAL DIESEL 2,884 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 MI Swaco Mud Engineer 2 12 24 PRA DSM 2 24 48 Aimm Vac truck 4 12 48 PRA Safety 1 1 1 Baker Liner 1 12 12 CINGSA Conrad /Rick 0 Weatherford Csg. 4 12 48 Canrig Mud loggers 2 12 24 FMC Wellhead 1 12 12 Pollard SSSV 2 2 4 - TOTAL COUNT 43 TOTAL MAN HOURS 521 CINGSA - DAILY DRILLING REPORT 1 Date: 1 0/24/201 1 Well Name 41) CLU Storage 4 BHA #: • - DSM Days: John Nicholson Current Depth: 10500 Location: Kenai, AK Tar 10500 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field/Pool: Cannery Loop / Sterling C Contractor Nabors Alaska -Rig 105 E N i g h ts oo Stephen Ratcliff Days Since Spud 26 Present R/D NAD Rig 105E Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 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 118 2480 2362 1-1-wt-aa- -" -td 15.5 152.39 2 12 1/4 HCC QD505XX 7131957 8x12 2480 8619 6139 1 -+ -w --„o 45.3 135.52 3 8 1/2" HCC HCR503ZX 7114328 3x13 3x14 8619 10500 1881 1 7 13 s x 2 - „ o - td 21.0 89.57 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE Conductor: 20" 133# X -56 Welded 97' N/A July Surface: 13.375" 68# J -55 BTC mod 2467' Schlumberger 1 -Oct Intermediate 9.625" 40# L -80 BTC 8608' Schlumberger 12 -Oct Liner 7" 26# L -80 Vam Top 10498' Schlumberger 20 -Oct Tubing 7" 26# L -80 Vam Top 8424' N/A 23 -Oct PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.6 GEL (50 lb bag) 138.00 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 25 S. ASH (50 lb bag) 10.00 LINER SIZE 6 LINER SIZE 6 R600 /R300 3/2 CAUSTIC 57.00 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 1/1 LOTORQ 3309.00 SPM - SPM - R6 /R3 1/1 ASPHASOLSUPREME 253.00 GPS - GPS - PV 1 CONQOR 404 3.00 GPM - GPM - YP 1 SODIUM METABISULFITE 24.00 PSI - PSI - GELS 1/1/1 FLOWZAN 153.00 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS - PAC 144.00 TOT CIR MIN - TOT CIR MIN - CAKE APH /HT - CF -DESCO II 33.00 AVDP: AVDP: SOLIDS 1 MYACIDE GA25 12.00 AVDC: AVDC: OIL/WATER _ /99 SCREEENKLEEN 138.00 AVDC: AVDC: SAND - KLA -GARD 21.00 DRILL STRING & HYDRAULICS PH 8.6 POTASSIUM CHLORIDE 1086.00 STRING WT. - WOB - Pf /Mf .00 /.00 SAFE -CARB 40 709.00 .. PICK UP - RPM - CHLORIDES 18000 SODIUM BICARBONATE 76.00 SLACK OFF - TFA - CA BARITE 458.00 MAX PULL - HI-!n - VOL. PIT - (BBL) 602 RESINEX 120.00 DPOD - PRESS DROP - HOLE - (BBL) 667 SOLIDS (BBLS hauled by AIMM) 517 6578.47 DCOD - JET VEL - API SCREEN 4x165 4x200 Daily Mud Cum. - - ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours 1 Description 'Detail I Daily 1 Cumulative 6:00 7:00 1.00 Run control line to SSSV and test to 5000/ 10min RU /RD 5.00 142.00 7:00 9:30 2.50 M/U tubing hanger run control line through hanger and test Drilling 139.00 to 5000psi F /10min Service /Repair Rig 17.50 9:30 12:00 2.50 Displace to completion fluid 555bb1 8.6ppg brine W/ conquor Surveys 0.00 404 and 2bbl diesel for freeze protection Trips 200.50 12:00 12:30 0.50 Land out tubing in well head and lock down. Change BHA 38.00 12:30 14:30 2.00 R/d landing jt. R/U test Tubing to 3000psi F /15min Ok Casing 9.50 91.25 Test 7" Tubing X 9 5/8 annulas 1500psi 15min ok Cementing 21.00 14:30 15:30 1.00 Lay down tubing handling tools,and landing joint Set BPV Logging 6.75 Clean out drip pan. NU /ND Test 9.50 69.50 15:30 17:00 1.50 Flush out stack and all choke and circulating lines. Clean DST /Core 0.00 pits. Well Control 0.00 17:00 23:00 6.00 Nipple down BOP. Drain accumulator lines WOO 0.00 23:00 2:00 3.00 R/U and install FMC Wellhead, R/U to P/T well head. P &A 0.00 2:00 2:30 0.50 Test well head to 5000 psi for 10 minutes, test good. Safety Meetings 6.00 2:30 6:00 3.50 R/D test, clean pits, prep rig for move to CLU #2 Drilling Cement 4.50 _-.2k., FINAL REPORT FOR CLU #4 - Rig released to CLU #2 Circ /Other 55.25 24.00 See notes below in Remarks & Comments section: TOTAL 24.00 791.25 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I CONN DOWN I CONN UP I VENDOR I O.D. I I.D. 1 GAUGE I NECK I LENGTH ITOTAL LENGTH 1 0.00 2 0.00 3 0.00 4 0.00 5 0.00 6 0.00 7 0.00 8 0.00 9 0.00 10 0.00 11 0.00 12 0.00 BHA TOTAL LENGTH o.00 REMARKS & COMMENTS DIESEL Note spot 2bbls diesel in tubing and 7 "x 9 5/8 annulus ( freeze protect) Diesel on Location _ 2,884 Mud loggers and mud engineers released and units rigged down. Diesel Used Last 24 634 Final report for CLU #4. Diesel Received 0 No accidents or spills. TOTAL DIESEL 2,250 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Ri• Crew 24 12.5 300 MI Swaco Mud Engineer 2 12 24 PRA DSM 2 _ 24 48 Aimm Vac truck 4 12 48 PRA IIIEEEIM 1 - 1 1 Baker Liner 1 12 _ 12 . CINGSA Conrad /Rick _ 0 Weatherford Csg. 4 12 48 Canri. Mud lo..ers 2 _ 12 24 FMC Wellhead 1 12 12 Peak Rig Move 8 _ 12 96 Pollard SSSV 2 8 16 TOTAL COUNT 51 TOTAL MAN HOURS 629 - S • FROM TO LENGTH JOINT DESCRIPTION G/L 97' 97' Welded 20" 133# X -56 Welded Conductor Pipe RT 2467 2467 BTCmod 13.375 68# J -55 BTC mod L- 80 couplin s surface casing Surface I I 1 FROM TO LENGTH JOINTS DESCRIPTION 2480 2467.37 12.63 - RatHole 2467.37 2465.5 1.87 - 13 3/8" Float Shoe 2465.5 2425.21 40.29 1 13.375 68# J -55 BTC mod L- 80 couplings 2425.21 2423.28 1.93 - 13 3/8" Stab in Float Collar 2423.28 37.6 2385.68 59 13.375 68# J -55 BTC mod L- 80 couplings 37.6 19.4 18.2 - Cut 13.375 68# J -55 BTC mod L- 80 couplings 19.4 0 19.4 - RT to 13 3/8" Stub Intermediate FROM TO LENGTH JOINTS DESCRIPTION 8619.0 8608.0 11.0 - Rathole 8608.0 8606.0 2.1 - 9 5/8" BTC - Davis Lynch 501 Down Jet Float Shoe 8606.0 8525.1 80.9 2 9 5/8" 40# L -80 BTC 8525.1 8523.0 2.1 - 9 5/8" BTC - Davis Lynch SB Float Collar 8523.0 8482.1 40.9 1 9 5/8" 40# L -80 BTC 8482.1 8472.4 9.7 - 9 5/8" 40# L -80 BTC - LTC Pup Joint 8472.4 3406.1 5066.3 123 9 5/8" 40# L -80 BTC 3406.1 3403.8 2.3 - 9 5/8" BTC - Davis Lynch Hydraulic Stage Collar - Type 777 -HY 3403.8 23.5 3380.3 84 9 5/8" 40# L -80 BTC 23.5 20.9 2.6 - 9 5/8" 40# L -80 BTC - LTC Pup Joint 20.9 20.4 0.5 - 9 5/8" BTC - LTC UH -A - Fluted Hangar 20.4 0.0 20.4 - RT to Hanger Liner FROM TO LENGTH JOINTS DESCRIPTION 10500.00 10498.00 2.00 - Rathole 10498.00 10497.50 0.50 - 7" Float Shoe 10497.50 10416.55 80.95 2 7" 26# L -80 Vam Top HC 10416.55 10416.05 0.50 - 7" Internal Landing Collar 10416.05 8453.75 1962.30 50 7" 26# L -80 Vam Top HC 8453.75 8448.89 4.86 - 7" Handling Pup - 26# L -80 Vam Top HC 8448.89 8447.14 1.75 - 7" Casing Nipple 8447.14 8440.23 6.91 - 7" X 9.625" FlexLock Hanger 8440.23 8424.53 15.70 - _ZXPN Liner Top Packer Tubing FROM TO LENGTH JOINTS DESCRIPTION 8417.10 8415.70 1.40 - 7" Loc Seal Assembly 8415.70 8406.06 9.64 - 7" 26# L -80 Vam Top HC - Casing Pup 8406.06 158.58 8247.48 202 7" 26# L -80 Vam Top HC 158.58 153.68 4.90 - 7" 26# L -80 Vam Top HC - Casing Pup 153.68 150.29 3.39 - 7" Vam Top - S.S.S.V. Nipple 150.29 145.38 4.91 - 7" 26# L -80 Vam Top HC - Casing Pup 145.38 22.26 123.12 3 7" 26# L -80 Vam Top HC 22.26 20.08 2.18 - 7" 26# L -80 Vam Top HC Pup Joint 20.08 19.30 0.78 - 7" 26# L -80 Vam Top HC - Hanger /PI Wall • • PRI T DISTRIBUTION BAKER TION LIST N S U HUGHES COMPANY CINGSA INTERMEDIATE FINAL Yes (mandatory) WELL NAME CLU Storage #4 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) gt LOG DATE: 10/18/2011 TODAYS DATE: -- 518f20y-1- (mandatory) DISTRIBUTION LIST AUTHORIZED BY: CINGSA (mandatory) HAS CLIENT BEEN INVOICED FOR ADDITIONAL PRINTS? Yes t [ — 1- a 2. COMPANY FIELD FINAL (digital / ADDRESS (FEDEX WILL NOT DELIVER TO P.O. BOX) LOGS LOGS image) FILM PERSON ATTENTION # OF PRINTS # OI PHIN I S # OF COPIES # OF COPIES 11 4 4 4 II 1 PRA 4 4_ Attn: Tom Walsh, Rick Gentges, Rig 3601 C Street, Ste 822 Anchorage, AK 99503 I 2 AOGCC - 1 1 1 1 1 1 I Attn: Christian Mahnken 333 West 7th Ave. Anchorage, AK 3 DNR 1 1 1 1 1 1 I I Attn: William C. Barron - Director Dept. of Natural Resources - Div. of Oil and Gas 550 West 7th Ave. Anchorage, AK J 4 1 0 1 0 1 1 I 5 1 1 0 1 1 I I TOTALS FOR THIS PAGE: 0 6 6 0 0 0 TOTALS FOR ALL PAGES: 0 6 6 0 0 0 • ! CAIIIRIG Unn.i.in4 Trrn,ui,w,v Cn❑ 301 EAST 92 AVENUE, SUITE 2 • ANCHORAGE, ALASKA 99515 • (907) 561 -2465 • FAX (907) 561 -2474 October 20, 2011 A1011001 Mr. Howard Okland AOGCC 333 West 7 Avenue Anchorage AK 99501 Re: Dry Sample Transmittal — CINGSA CLU Storage 4 , r I _ 1 Z Kenai Borough, Alaska 2 Dear Howard: /33 �2 O 5 Yf - 0 a Enclosed with this letter are dry samples from the above referenced well. The following number of cuts are for the AOGCC per CINGSA instructions. CLU Storage 4 Set Type and Purpose Interval I Frequency Distribution AOGCC 1 Washed and Dried 110' — 8450' 30' Interval 333 West 7 Ave Ste 100 Reference Samples 8450' — 10,500' 20' Interval Anchorage, Alaska 99501 ATTN: Howard Okland Most sincerely, i Vegtaxa 2.. Cet,t-u- James R. Carson 1 (2 / Alaska Division Manager Canrig Drilling Technology, Ltd. Received by: ignature Title Date RECEIVED' OCT2 2011 $k8 cif & Gas boas. f • siin l (� z • • Saltmarsh, Arthur C (DOA) From: Saltmarsh, Arthur C (DOA) Sent: Monday, October 17, 2011 12:54 PM To: 'cperry©att. net' Subject: RE: CLU Storage 4 - CINGSA As we just discussed, there should be no problem with those depths as you will be within 500 ft. of the proposed / permitted TD. Art Saltmarsh, CPG Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Ste 100 Anchorage, Alaska 99501 907- 793 -1230 immiiimo r * ` j Y ` ' " �' ' 44 " � '' SCANNED JUN 0 7 20i3 mimio opt "The only thing necessary for the triumph of evil is for good men to do nothing ". Edmund Burke From: Conrad Perry [mailto:cperry©att.net] Sent: Monday, October 17, 2011 12:31 PM To: Saltmarsh, Arthur C (DOA); Maunder, Thomas E (DOA) Cc: 'Richard Gentges' Subject: CLU Storage 4 - CINGSA Art, We would like to drill farther in MD and end slightly shallower in TVD on CLU Storage 4. Our current PTD shows a 10,391' MD/5,139' TVD TD. We have built to a higher angle and would like to land at 10,500' MD/5,115' TVD. Do you see any problems with that? conrad 1 • Page 1 of 1 Regg, James B (DOA) From: Regg, James B (DOA) r b 2.4(2 Sent: Tuesday, October 11, 2011 3:10 PM Q17 To: 'cperry@att.net' Cc: Maunder, Thomas E (DOA); 'Richard Gentges' Subject: RE: CLU Storage 4 The 7 -inch liner will not be deemed to be the same as BHA and collars. However, the Commission does approve an extension of the variance granted for the CLU S -3 (PTD 2110880) production liner to CLU S -4 (PTD 2111220). That variance authorizes CINGSA to run the liner without the required 7 -inch pipe rams required by 20 AAC 25.035(e)(1)(A)(i). In lieu of installing 7 -inch pipe rams, CINGSA is authorized to make up and have available on the rig floor a full stand of drill pipe made up with a suitable crossover that enables stabbing into the liner and running it into the wellbore below the rotary table so the existing pipe rams can close on the drill pipe section of the crossover assembly. Please note this approval is not blanket authorization and applies as extended to CLU S -4 only. CINGSA's efforts to secure variable bore rams that address the size of drillpipe and liner is an appropriate solution to avoid this variance for future CLU wells. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907 - 793 -1236 From: Conrad Perry [mailto:cperry@att.net] Sent: Monday, October 10, 2011 7:45 PM To: Regg, James B (DOA) Cc: Maunder, Thomas E (DOA); 'Richard Gentges' Subject: FW: CLU Storage 4 Jim, I had sent an email to Winton for a variance on our current well and did not receive a reply before he left. We have a proven maximum bottom hole pressure of less than 2500 psi and have received a approval to use two pipe rams and an annular. I would like to request a one time variance to AOGCC 20 AAC 35(e)(1)(A)(i) to treat the 7" liner the same as the BHA and collars. We received a verbal on the last well and Winton requested us to have a full stand made up to a suitable crossover, so we could stab into the liner and lower it below the rotary table, closing the pipe rams on drill pipe. We have finally sourced 4 1/2 "" x 7" variables today for our stack in Houston, however, we are unsure if they will get here in time. The alternative is to rebuild our bell nipple after the 9 5/8" is set and cemented, and reconfigure our stack to three rams. There would be kill weight mud in the hole and a tested packoff on the casing hanger. The inside of the 9 5/8" would be sealed by two floats, cement and a stage collar at 3,500'. The casing above 3,500' would have been tested to 2000 psi. The stack has to be broken at the wellhead and the single ram placed below the cross. I am in town and would be happy to come by and discuss this. Sincerely, Conrad Perry CINGSA Drilling Supt. 907.727.7404 10/11/2011 Page 1 of 2 • Maunder, Thomas E (DOA) From: Well Pad [well.pad @cingsa.com] Sent: Sunday, October 09, 2011 8:22 AM To: Maunder, Thomas E (DOA) Cc: cperry@att.net Subject: RE: Extension Request for BOP test due 10 -9 -11 Yes, we have 5" drill pipe, sorry for the typo. We will comply as directed. Thanks for your help Steve Ratcliff Regards, CINGSA Well Site Team (907) 398 -3156 - Rig Phone m: Maunder, Thomas E (DOA) [tom.maunder @alaska.gov) Se • Saturday, October 08, 2011 6:10 PM To: - 'ad Cc: cperry •tt.net; Jones, Jeffery B (DOA) Subject: RE::. ension Request for BOP test due 10 -9 -11 Steve, I have attempted to conta im Regg without success. It appears from y• r timing that you should be running casing prior to 2400 tomorro ht which means you will have change- and tested your rams. I believe it is acceptable for you to not conduc ,- full BOP test at this time. How- er, I do think it appropriate to test the annular, your other preventer. Pleas- -ve a copy of this messa• - at the rig and as usual, notify the Inspectors in advance of your BOP test. One other g, you mention tha our current pipe rams are 5 -1/2 ". It was my understanding that you were using either 4" • " DP. Tom Maunder, PE AOGCC From: Well Pad [mailto:well.pad @cingsa.com Sent: Sat 10/8/2011 2:52 PM To: Maunder, Thomas E (DOA) Cc: cperry @att.net Subject: RE: Extension Request for r • P test due 10 -9 -11 Tom, Currently at 2650', POOH •r cleanout assembly. Plan Forward: 2:30pm - 4:30pm T ish POOH 4:30 pm- 8:30 • ' change BHA 8:30pm - 1: %am RIH 10 -9 -11 1:30am - 5:00am circ & condition Hole 5:00am - 12:00 noon POOH 12:00pm - 4:00 pm L/D BHA, R/U to run Csg, Change Rams, Test 4:00pm - 6:00 am 10 -10 -11 Run 9 -5/8 csg, land 10/13/2011 Page 1 of 2 S Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Saturday, October 08, 2011 6:11 PM To: Well Pad Cc: cperry@att.net; Jones, Jeffery B (DOA) Subject: RE: Extension Request for BOP test due 10 -9 -11 Steve, I have attempted to contact Jim Regg without success. It appears from your timing that you should be running casing prior to 2400 tomorrow night which means you will have changed and tested your rams. I believe it is acceptable for you to not conduct the full BOP test at this time. However, I do think it appropriate to test the annular, your other preventer. Please have a copy of this message at the rig and as usual, notify the Inspectors in advance of your BOP test. One other thing, you mention that your current pipe rams are 5 -1/2 ". It was my understanding that you were using either 4" or 5" DP. Tom Maunder, PE AOGCC From: Well Pad [mailto:well.pad @cingsa.com] Sent: Sat 10/8/2011 2:52 PM To: Maunder, Thomas E (DOA) Cc: cperry@att.net Subject: RE: Extension Request for BOP test due 10 -9 -11 Tom, Currently at 2650', POOH for cleanout assembly. Plan Forward: 2:30pm - 4:30pm finish POOH 4:30 pm- 8:30pm change BHA 8:30pm - 1:30am RIH 10 -9 -11 1:30am - 5:00am circ & condition Hole 5:00am - 12:00 noon POOH 12:00pm - 4:00 pm L/D BHA, R/U to run Csg, Change Rams, Test 4:00pm - 6:00 am 10 -10 -11 Run 9 -5/8 csg, land 6:00am - 8:00am cement casing 8:00am - 8:00am 10 -11 -11 WOC 24 hrs; R/D cmt head, change to 5 -1/2 pipe rams, Test BOP's This is my best estimate at this time. Regards, Steve Ratcliff CINGSA Well Site Team (907) 398 -3156 - Rig Phone From: Maunder, Thomas E (DOA) [tom.maunder @alaska.gov] Sent: Saturday, October 08, 2011 1:47 PM To: Well Pad Cc: cperry@att.net 10/13/2011 Page 2 of 2 • • Subject: RE: Extension Request for BOP test due 10 -9 -11 Steve, Are you on the bank right now? Please give your forward plan with estimated start times. Thanks in advance. Tom Maunder, PE From: Well Pad [mailto:well.pad @cingsa.com] Sent: Sat 10/8/2011 1:43 PM To: Maunder, Thomas E (DOA) Cc: cperry@att.net Subject: Extension Request for BOP test due 10 -9 -11 Tom, We are currently changing our BHA for our " clean out" run to bottom ( 8,619 and ) in preparation for running 9- 5/8 csg. After POOH, we'll be changing from 5 -1/2 rams and testing the 9 -5/8 Rams and would like to minimize our time out of the hole. Our BOP test date is tomorrow, 10 -9 -11. We would like to request a waiver for the complete BOP test until after our 9 -5/8 is set and we change back to the 5 -1/2 Rams. Pleas let us know if this is acceptable. Regards, Steve Ratcliff QNGSA Well Site Team (907) 398 -3156 - Rig Phone 10/13/2011 • • rage i or � Maunder, Thomas E (DOA) From: Conrad Perry [cperry@att.net] Sent: Thursday, October 06, 2011 1:16 PM To: Regg, James B (DOA) Cc: Maunder, Thomas E (DOA); 'Richard Gentges'; 'Well Pad' Subject: RE: BOP Test Frequency- CLU Storage 4 Nabors Rig 105 AC 1i Thank -you Jim. We have appreciated the time extensions granted so far on our project and the ability to work closely with the inspectors to ensure we are in compliance with the regulations. I understand your email to say that we must stay on the 7 day cycle for CLU Storage 4 with the ability to request time extensions if prudent, but should ask for a 14 day cycle in our permit to drill applications for subsequent wells. We are also aware that there is no time extensions when you are on the 14 day cycle. Best Regards, conrad m: Regg, James B (DOA) [mailto:jim.regg @alaska.gov] Sen Thursday, October 06, 2011 11:53 AM To: cpe • @att.net; Richard Gentges; Well Pad Cc: Maund- Thomas E (DOA) Subject: RE::. • Test Frequency- CLU Storage 4 Nabors Rig 105 AC Cornm:ssioi requir ysteel'.iy d JP E testind for dr!;Itog operations beano conducted by new rig , those rigs rhat f, Yo ')err im crave for an ( ended period of time, boo: perrcrmino rigs, or new operators until the Commission is satisfied with the perfcrmao,co iquinrn nt, test procedure, cornmunicai.ions from rig regarding jest notification, etc.). 1 his was clearly explained '...John Nicholson on 9/2/2011 when he questioned the BOPE test cycle for Nabors 11152 [rig was placed on a , n;. 'fly BOPE test senedule for at least CLU S -3 ;ince CINiGSA is a new operator to the State of Alaska and the n 'lad not worker) since March 2009]. it was further noted in my conversation with Mr. Nicholson that the Co 'r 4crission would consider moving the BOPE test cycle to 1-4 days (not is exceed 'i'r days between tests) based on pe ;;c_rrmancee while drilling CLU S -3; inat request needed to come from CINIGSA While having performed just 3 ELOPE tests since cornrrtenc ' H operations, the tes' results and observations. from Commission Inspectors indicate a ;',1uve to 1 4 -day BOPE test le may be justified. Moving to a I4day tes byc;ie should he addressed in PTDs ■or wells subsequent to CO.) The Commission does allow for some time extensions to the requirement - test every 7 clays (must be uustified) - as you have experienced thus far in the Cannery Loop project. Please note r •t the Commission does not grain hoe extensions for EsOFE testno required on a 1z day cycle; the operator is exit • ed to take advantage of opportunities (fps to surface) that occur during the 14day window to test BOPE Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907 - 793 -1236 From: Maunder, Thomas E (DOA) Sent: Thursday, October 06, 2011 9:54 AM To: cperry@att. 10/6/2011 • Page 1 of 2 e James B DOA 99� (DOA) From: Regg, James B (DOA) R41 It f� ti C ucg -�-4 Sent: Thursday, October 06, 2011 11:53 AM (( 2l 1 - Z z- To: 'cperry @att.net; 'Richard Gentges'; 'Well Pad' Cc: Maunder, Thomas E (DOA) Subject: RE: BOP Test Frequency- CLU Storage 4 Nabors Rig 105 AC The Commission requires weekly BOPE testing for drilling operations being conducted by new rigs, those rigs that have been inactive for an extended period of time, poor performing rigs, or new operators until the Commission is satisfied with the performance (equipment, test procedure, communications from rig regarding test notification, etc.). This was clearly explained to John Nicholson on 9/2/2011 when he questioned the BOPE test cycle for Nabors 105E [rig was placed on a weekly BOPE test schedule for at least CLU S -3 since CINGSA is a new operator to the State of Alaska and the rig had not worked since March 2009]. It was further noted in my conversation with Mr. Nicholson that the Commission would consider moving the BOPE test cycle to 14 days (not to exceed 14 days between tests) based on performance while drilling CLU S -3; that request needed to come from CINGSA. While having performed just 3 BOPE tests since commencing operations, the test results and observations from Commission Inspectors indicate a move to 14 -day BOPE test cycle may be justified. Moving to a 14day test cycle should be addressed in PTDs for wells subsequent to CLU S -4. The Commission does allow for some time extensions to the requirement to test every 7 days (must be justified) - as you have experienced thus far in the Cannery Loop project. Please note that the Commission does not grant time extensions for BOPE testing required on a 14day cycle; the operator is expected to take advantage of opportunities (trips to surface) that occur during the 14day window to test BOPE. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907 - 793 -1236 From: Maunder, Thomas E (DOA) Sent: Thursday, October 06, 2011 9:54 AM To: cperry@att.net Cc: 'Richard Gentges'; 'Well Pad'; Regg, James B (DOA) Subject: RE: BOP Test Frequency- CLU Storage 4 Nabors Rig 105 AC Conrad, et al, I will have a look at this later this morning. I think you are correct that the 7 day requirement was due to being a "newly activated" rig. I will have to work with Jim Regg on this as he is responsible for Inspections. If you would, what is the plan forward for the operations? Are you nearing 7 days since the last test? Tom Maunder, PE AOGCC From: Conrad Perry [mailto:cperry@att.net] Sent: Thursday, October 06, 2011 9:50 AM To: Maunder, Thomas E (DOA) Cc: 'Richard Gentges'; 'Well Pad' Subject: BOP Test Frequency- CLU Storage 4 Nabors Rig 105 AC Tom, Please clarify the agency's BOP test frequency requirements for CINGSA operations. If I am reading it 10/6/2011 Page 2 of 2 right according to the regs we should be on a 14 day test cycle. - 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; We have been working to a weekly BOP test, but I believe that may have been self- induced by me. It is also possible that with the rig coming off stack the AOGCC wanted to check our performance. We have one wells performance behind us and rig operations have smoothed out. Based on that, we request approval for a 14 day BOP test cycle for the remaining wells in our program. Best Regards, conrad 727 -7404 10/6/2011 sITATE [iF A[LAsLi SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMAIISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276-7542 M. Colleen Starring Vice President Cook Inlet Natural Gas Alaska, LLC P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Pool, CLU Storage 4 Cook Inlet Natural Gas Alaska, LLC Permit No: 211 -122 Surface Location: 670' FNL, 1762' FEL, SEC. 9, T5N, R 11 W Bottomhole Location: 1578' FWL, 699' FSL, SEC. 8, T5N, R11W 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, Daniel T. Seamount, Jr. Chair DATED this <A/ day of September, 2011. cc: Department of Fish & Game, Habitat Section w/o encl. (via e -mail) Department of Environmental Conservation w/o encl. (via e -mail) a a RECEIVE6, 1 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION SEP 12 2011 ✓y PERMIT TO DRILL �'�� 20 AAC 25.005 ► JGA- Alaska Gil & Gas Cotes. CommiPsion la. Type of Work: 1b. Proposed Well Class: Development - Oil ❑ Service - Winj ❑ Single Zone ❑ lc. Specify If -,,. for: Drill 0 Redrill ❑ Stratigraphic Test ❑ Development - Gas ❑ Service - Supply --8 - 'Multiple Zone .-®" Coalbed Gas 0 Gas H . rates ❑ Re -entry ❑ Exploratory ❑ Service - WAG ❑ Service - Disp ❑ Service - Gstor El Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket Q Single Well ❑ 11. Well Name and Number: Cook Inlet Natural Gas Alaska, LLC Bond No. /054 .3"97 CLU Storage 4 3. Address: 6. Proposed Depth: 12. Field/Pool(s): P.O. Box 190989, Anchorage, AK 99519 MD: 10,391' TVD: 5,159' Cannery Loop/ Sterling C pool 4a. Location of Well (Governmental Section): 7. Property Designation (ease Number Surface: 670' FNL 1762 FEL SEC. 9 T5N R11W ...f97; A9 2 fflp Top of Productive Horizon: 8,728' / 4,914' TVD 8. Land Use Permit: 1 13. roxim8te Spud Date: 2158'FEL 1283'FSL SEC. 8 T5N R11W AOL 230925 9/194911 Total Depth: 10,391'MD / 5,159' TVD 9. Acres in Property: 14. ce to Nearest Property: 1578'FWL 899' FSL SEC. 8 T5N R11W 1272 207' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. RT Elevation above MSL: 50.5 feet 15. Distance to t Well Open Surface: x- 281844.85 y- 2392882.52 Zone- 4 GL Elevation above MSL: 33 feet to Same Pool: 39 feet 16. Deviated wells: Ves epth: 400' feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 81.5 degrees Downhole: 2,280 Surface: 1,764 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 95' 0 0 115' 115' N/A 16" 13 3/8" 68 J -55 BTC 2451' 0 0 2465' 2086' 665 sxs lead / 276 sxs tail / 12 1/4" 95/8" 40 L-80 BTC 8753' 0 0 8753' 4917' 895 sxs lead /172 sxs tail/521 2nd stg 81/2" 7" 26 L -80 VamTop 1838' 8553' 4881' 10391' 5159' 242 sxs 9 5/8" stage collar @ - 3, 700'MD 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redriil and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Structural Surface �� .. Intermediate f7---r Production Liner Perforation Depth MD (ft): .� - -�' Perforation Depth TVD (ft): 20. Attachments: Property Plat 0 BOP Sketch 0 Drilling Program El Time v. Depth Plot el Shallow Hazard Analysis 0 Dlverter Sketch is Seabed Report ❑ Drilling Fluid Program El 20 AAC 25.050 requirements A 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and correct. Contact Printed Name M. Colleen Starring Tide Vice President • 1 JJ�� bff.A n ��,�/ S ignature / /� • QAiL{.®1 f Phone 907-334-7659 Date ? 0� �V < Commission Use Only Permit to Drill API Number: Permit Ap 1 See cover letter for other Number: p�J> /.o�a . 50- ,3,raajyro e>0 Date: 1 A ` �1 requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coal metha , gas hydrates, or gas contained in sha s: [ Other: Samples req'd: Yes I No❑ Mud log req'd: Yes ❑ Test 0 P E -` O no O (�, , H measures: Yes ❑ No I Directional svy req'd: Yes [Noo ❑ Pi,v t&v.* to Zo Mt. 2 4-1 Z. (6) , petvice✓ left-L._ Var / otgprvvcd . (� � � � APPROVED BY THE COMMISSION — 6 / DATE: , COMMISSIONER ORIGINAL - Form 10-401 (Revised 7/2009) This permit is valid for 24 months from the date of approval (20 AAC 25.005(g)) Submit in Duplicate 1 1 Aubert, Winton G (DOA) From: Conrad Perry [cpeny @att.net] Sent: Monday, September 19, 2011 6:19 PM To: Aubert, Winton G (DOA) Cc: 'Richard Gentges'; Well Pad' Subject: CLU Storage 4 Winton, CINGSA is requesting dispensation to 20 AAC 25.036(c) 1 to allow us 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 dispensation, we will have a 7" Vam Top pin (tubing thread) x 4 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 be able to quickly stab and make up the crossover and lower the liner below the rotary and engage the 5" pipe rams. Sincerely, Conrad Perry CINGSA Drilling Superintendent 1 Cook Cook Inlel Nufuraj:Gas 3000 Inlet Natural Gas Storage Alaska, LLC 30 3000 Spenand ard Road PO Box 190989 STORA 907- 4- 99519 -0989 Main: Main: 907 -334 -7980 Fax: 907-334-7671 www. cingsa. com September 12, 2011 RECEIVED Ms. Jody Colombie SEP 12 2011 Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite 100 Ataska Oil Gas Cots. Commission 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 4 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. If ou have any questions concerning the enclosed permit application, please feel free to Y Y 4 g P PP � p contact me at 907- 335-1488 (office), or 907 -310 -7322 (cell). Sincerely, Rich J. Gentges Senior Project Manager Enclosure CC: T. Arminski R. J. Gentges J. Lau C. Starring N. Thompson C. Perry (PRA) T. Walsh (PRA) 1 Cook Inlet Naiurc4:Gas STORAQ *� CINGSA D RIWNG P ROGRAM CLU STORAGE 4 Originator Date Conrad Perg Date / ,. �` y l' /i, Approved by ^ Richard Gentges Approved by Date John Lau 1iPage • • 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 2IPage • POTENTIAL WELL INTERFERENCE- 22 DIRECTIONAL SURVEYING SUMMARY 22 DETAILED DIRECTIONAL PLANNING 23 WELL CLEARANCE REPORT 27 PLANNED WELL PATH REPORT 28 DRILLING FLUID PROGRAM SUMMARY 34 DRILLING FLUID SPECIFICATIONS 34 SOLIDS CONTROL EQUIPMENT 35 CEMENT PROGRAM SUMMARY 35 REGULATORY WAIVERS AND SPECIAL PROCEDURES 36 BIT SUMMARY 36 HYDRAULICS SUMMARY 37 FORMATION INTEGRITY TEST PROCEDURE 37 PROPOSED COMPLETION SCHEMATIC 38 SURFACE USE PLAN FOR CLU STORAGE 4 39 31Page aSediv Measured Depth (ft) - 1 1... ka. 0 o o o o o o o 0 o o cs o c:).. o o q o q q _-, 9 73 . al 17' i-■ . 6 .- Run & Cmt 13 3/8" Csg s...,.. .., 1 o,, NU and Test 80Ps co 1.6 0 vi I CD I 13 n ri• f" , •,• k-) 3 o 0 „... 1 , C D ft 0 CI) .c c CD < •Pb Run and Cement 9 5/8" Csg CD d , 4, 1 I.) vl t ...i. . . . _... . I 4 I i Ftun & cunt 71Liner ...... Run 7" Completi ! I L NV/Release Rig !Rig Up Coil 1 w tA : Perforate' Release Coil! 1 © anin3 auill 1 14dea • 410 • • AREA MAP fl . - r ` Yi Anchorage i f ( .{' ■ i ' • c Kenai Field, Cannery Loop Unit, `' Sterling Undef Nikiski f;01 -. 't - Gas Pool ',Kenai . - — C oopei Lancing '' Seward GENERAL RESERVOIR OVERVIEW - .. 4: . ,.: .... . a t ; 1 r * . . . NF y I t 8 • OHG14 ,� " .v s 1 t axcsa•i 1 / r..-- • A • - . .1414.041441, /i RA){ J... N, ` 1' 3 M . 7 - - -..._ .. ... .. _ - -( • 5 j Page • CINGSA CURRENT WELL PLANS CLU-3 .4 1 . 141 P U-11 LUS- 1 „..** LU-7 r LU rY2 .440 01011 0# C LU . 4LU - • 13 • -4 C 1 6 age . • CINGSA FACILITIES MAP .,. ., ,,..... , .:.. - • \ ./ ..44•!“ / '.,‘ lis \ 1:47. 'I: \ \ ‘,*, , • ,,:" Stier SC1" Ett • "A 11 \14,40414ii * \\< \ MS. I r, • r .'" •c '; $ 4'-\ * . s ' • ' \ \ .• *!,t• I \ .. SCAtE 1 . :S • 7 I , '.- -.' • ct• • , \ •-• ,....a.: .7. . , , ...., . , ,,,,„,... 1 ..-' , L \AA , _ . PROPOSE ,$; • \ .., \ :E? ' \ ' ‘ ` FA , ,A ., \ \:\ (7. PAD 1 Z a ti \ :, . ...\ A. ..- ' \ • ,.. — " ' . • ----- -s. ' • ' C■ .. ' . ' i 6i f c., -.R.tw 1 lir ..-.).. :L.: 5 /: t: ‘, k \ \ 4''■\\.■ ..t.c. sou , . \ \ N \ ,,,s,, t .._..., \ „,,,./i 1 (•.' <7 \ ‘ N \ ' ■ s..:' 3< --- i C4 ' . 1 , \ ... _.._.., . • ..."- • "N.— ..... tk, '..- " -....N --.-- , St; : ,.,.....,N -\ 1 ' s - L " . Th ' -,. --).'J-------,f—/— _ ‘,\. , \ .,...., . z •.‹.., .... P • P/3 WELL ___ \ , "...aim, . a ' • 2 PAD 1 ' 1 j ; ' i l z - --- 7--------- ..-......,N c...mrsloc V.;.T., —..... - ....... , ' ..... . • ss ' 1 \ _ , ;• ' I '' • , r''',..z.... . . t . ... ,..„..- ..,..,..., .... 7IPage SURVEYED LOCATION PLOT • I- - - .11 \ , - . N .,- ... \ \ ... „.. :fcTril+ MI *ft* stTnakIP • ' ,' �— fit �tC'f fe P **i vY -- .F - —_ -- _ . _ tk t s . C. rt M 1 , 1 ,, 1 ', ', • • tMAC i R 7 1 ' , • -r MN ioo= I g ., L. 1 4'1 SIATt Ct ALAN.. I ', • , e � GNGSA S a .' 1 : v 't \ iv 2 M. .aral. i , � • AtWCA1t 1 j i A AL:•M -' Z(JMt • ' ::+•lL W.:11 11C: S...: ,1 i % . v4.4*Lt)t .•91 ".0 1M1t Ay r. sr a . t 1 1764-- ----4 - - ---fir. s I ; ra. „ \ l I 1 ' \ , • a , a . 1_ - a t i Il Y 1 / ------</ . 1 • 1 ' 1 a. . 1 `j , ' go, ii t ■ \ a I, I II ' 11 I : 1 • 1 SURVEY CONTROL . B.•A": n 0= GEC''' C.CNTP.+?..v.D !ADTS3 C .fT'Ct1 // �, ■ =FUC►- :D43 sn 1 aE ,':::= ALAiKA — P ;RT±!ShT OF TRAM SPCR'A a =t.BUC =AC._rE. S, :Er ,'' ' CC C'. A NTR KiaA2 PRCIJEST NO Sf 3 BENVCH1.1AFK 6.3 i A..A =.KA STA'E PLANE CCORD '&A ES A. 2C4\E 4 ARE I t NN M "..11S.14.64 742 E. , 4 eg1: v,SA.....!. EAS:S CB T4:AL CCATW:,. ti ADC *' BM BSI _".C1TED AT SRC SE .ACCES=_ RC BEA': ER _CGP RD INTER: ECTOW :CBE a2 = cT EL s 1 I 1 t E.' N+1' l ra'r i I1'1 kW Noitmol Gas .. .. CINSSA WELL , . . PA 80X i 202.8.5 As6U'LT WELL SURFACE ..;... •_. C )K At.? ,ANCHORAGE J �x t �+ LOCATION DIAGRAM �A 27 •' • ' 0.34.1 •3 Y.••.,. Scar .2T�, "JR1'1'►' . .•. 'ia�dMy3t 0 10!3 :�'y V. w ..30, o ,. �.4oC•• tit •F 30 On . n.• 5 ' ' ...... d. • //W A - n • SEWARD N,ER DIAN, A1AS�;A Wage. 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 C1 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 TV�T Pore Pore Formation (ft) (ft) Pressure Pressure Lithology Possible Fluid (Psi) (PPM Sterling A 6,804 4,125 1,739 8.33 silty sand gas /water Sterling B 7,245 4,332 1833 8.33 silty sand gas /water Sterling C -1 8,728 4,914 2204 8.56 sand gas Sterling C-2 9,487 5,026 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. Sterling A & B sand pore pressures are estimated at fresh water gradient. Surface Location Coordinates From Lease /Block Lines 670' FNL 1762 FEL SEC. 9 T5N R11W Latitude 60 °32' 39.4968" N Longitude 151° 12' 42.2048" W ASP Zone 4 NAD 27 Grid N 2392882.52 ASP Zone 4 NAD 27 Grid E 281844.85 Horizontal Displacement Tolerance Directional Target MD TVD Location (ft) (ft) (ft) (ft) +N / -S +E / -W Top Sterling C -1 Heel 8,728' 4,914' 60 °32'04.563 "N / 151 °14'43.609 "W - 3337.22 - 5672.49 50' radius Bottom Sterling C -2 Toe 10,391' 5,159' 60 °31'58.858 "N / 151 °15'14.376 "W - 3915.74 - 7212.16 50' radius 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 (BOPE or diverter as applicable} as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is the Steqg C sand packages and no oil sands are expected to be encountered. No H 2S is anticipated. No shallow gas sands are expected based on offset wells located nearby on Marathon's Drill Pad 3. 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 slightly less than 250 psia or approximately 1.0 ppg EMW. There is potential for isolated sand packages within the Sterling C to be at original pressure. Original reservoir pressu a was measured at 2206 psi at a datum depth of 7853' MD (4966' TVD) in CLU-6. This equates t0203 i at the top of the Sterling C sand at 8,728'MD -' (4,914'TVD). As such, the interval will be dr ily with a suitable mud weight to control any normal pressures. FORMATION EVALUATION SUMMARY Interval LWD Wireline Logs Mud Logs Basic with Gas Surface GR/Resistivity None Chromatography 0' to 2,465' MD Analysis(GCA), PVT, Intermediate Basic with GCA, PVT, 2,465' to 8,753' MD GR/Res 9 5/8" CBUGR/CCL sample collection (30' samples). Production Triple Combo Basic with GCA, PVT, 8,753' to 10,391' MD GR/Res /Neutron 7" CBUGR/CCL sample collection (10' samples). Coring Requirements: None Comments: None 111Paee • DRILLING PROGRAM SUMMARY CONDUCTOR: 1. Drive 20" conductor to +1 -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. y 4. Function test diverter and diverter valve. SURFACE: 1. Directionally Drill a 16" hole to 2,465' MD (2,086' 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 -bo 4 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 2,500 psi. INTERMEDIATE: 1. Drill out float equipment and make 20' of n • ale. CBU. 2. Test shoe to leak off. Estimated leak off is 15.1 • pg EMW. 3. Directional dri11l2 1/4" hole to 8,753'MD (4, • 7 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. Zest 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. Install Pack off and test to 3000 psi. 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 2,500 psi. 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 10,391' MD (5,159' 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 2500 psi. Circulate casing and drill pipe 7 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 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 • 0 CASING PROGRAM MD (ft) Connection API Ratings Casing Weight Hole Size Size Grade - (lb/ft) O.D. Makeup (Inches) Burst Collapse Tension (in) Top Bottom Type (inches) Torque (Psi) (Psi) (kips) (ft Ibs) 133/8" Surface 2,465' 68 J-55 BTC 14.375 N/A • 16 3,450 1,950 1,069 '" 9 5/8" Surface 8,753' 40 L-80 BTC 10.625 N/A • 12 1/4 5,750 3,090 916 7"L 8,553' 10,391 26 L-80 VAM Top 7.565 3,200 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 - (lb/gal) (psi) Frc. Formation Grad. Pressure Burst Collapse Tension (lb/Gal) (lb/gal) / 13 3/8" 68 J -55 2,086 9.4 15 8.5 1472 2.34 1.91 6.38 9 5/8" 40 L -80 4,917 (9. 13 1.0 -8.5 1764 3.26 2.47 2.62 7 "L 26 L-80 5,159 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 ** Gas /Mud Ratio (in) (TVD) (Psi) (Psi) / 13 3/8 2,086 2644 1472 0/100 9 5/8 4,917 2350 1764 50/50 7 5,159 3431 1184 100/0 *MAWP = Maximum Allowable Working pressure * *MASP = Maximum Anticipated Surface Pressure 131 Page • WELL CONTROL AND CASING DESIGN CALCULATIONS Surface Casing.-.13 3/8'WP (2,465' MD / 2,086' TVD) Collapse 9.4 ppg mud wt at setting depth- evacuated = 9.4 ppg x .052 x 2086' = 1,020 psi Safety Factor = 1,950 psi / 1,020 psi = 1.91 Burst (I2 Surface a) Frac Pressure @ Csg Shoe = (15.0 ppg + 0.5 ppg) X .052 X 2,086' - (.1 psi/ft x 2,086') = 1681 psi - 209 psi = 1,472 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth _ (2,173* psi) - (0.1 psi/ft X 4917) = 2,173 psi - 492 psi =1,681 psi * Assumes 9 5/8" TDs in non - depleted formation. Use lesser of a or b = 1,472 psi Safety Factor = 3,450 / 1,472 =2.34 Tension no buoyancy, hung in air = 2,465' x 68 =167,620# Safety Factor = 1,069,000/167,620 = 6.38 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 2,086') MASCP = 2,644 psi 14 Page • • Intermediate casing: 9 5/8" (8,753' MD / 4,917' TVD) Collapse 9.8 ppg outside, 1/2 filled inside = .5 x 9.8 ppg x .052 x 4,917' =1,253 psi Safety Factor = 3,090 psi / 1,253 psi =2.47 Burst O. Surface a) Frac Pressure @ Csg Shoe = (13.0 ppg + 0.5 ppg) X .052 X 4,917' - (.1 psi/ft x 4,917') = 3,452 psi - 492 psi = 2960 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (8.5 ppg X .052 X 5,159') - (0.1 psi/ft X 5,159') = (2,280 psi) - (516 psi) = 1,764 psi Assumption under b) is made to demonstrate worst case surface pressure if the reservoir had not been depleted. Current projected depletion pressure of 244 psi at TD results in a negligible surface pressure for burst calculations. Use lesser of a or b = 1,764 psi Safety Factor = 5,750 /1,764 = 3.26 Tension Hung in air = 8,753' x 40# = 350,120# Safety Factor = 916,000/350,120 = 2.62 ." 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 = x 750 psi- (9.8 - 1.0) x .052 x 4,917') MASCP = ,3 i 15l Page • • Production Liner: 7" (10,391' MD / 5159' TVD) Collapse 1/2 x 9.8 ppg x .052 x 5,159' = 1,315 psi or Formation Pressure - gas gradient = (8.5 ppg X .052 X 5,159') - (0.1 psi/ft X 5,159') = 2,280 psi - 516 psi = 1,764 psi Choose worst case = 1,764 psi Safety Factor = 5,410 psi /1,764 psi =3.07/ Burst 0 Surface a) Frac Pressure @ Csg Shoe = (13.0 ppg + 0.5 ppg) X .052 X 5,159' - (.1 psi/ft x 5,159') = 3,622 psi - 516 psi = 3,106 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (244 psi) - (0.1 psi/ft X 5,159') = 244 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 5159) = 1700 psi - 516 psi = 1184 psi Use C as more realistic condition, rather than lesser of a) or b) or c) = 1,184 psi Safety Factor = 7,240 / 1,184 = 6.11 Tension Hung in air = 1,838' x 26# = 47,788# Safety Factor = 604,000/47,788 = 12.64 / 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 - 1.0) x .052 x 5,159') MASCP = 3,431 psi Comments 161 Page • BOPE PROGRAM Casing Test Casing Size MASCP MASP Test Pressure Casing (in) () (psi) Test Pressure Fluid Density BOPS Size & Rating Low /High (psi) (lb /gal) (psi) (1)135/8" 5M annular 250 / 2,500 .� Surface 133/8 2,644 1,472 2,500 9 (1)13 5/8" 5M pip ram (1)13518'5Mblinin dram (1)13-5/8" 6M drilling spool with 4 1/16" 5M outlets (1)13.6/8' 5M annular 250 / 2,500 s Intermediate 9 5/8 2,350 1,764 2,500 9.5 (1)135/8" 5M pipe ram (1) /8' 6Mblind ram (1)13.6/8" 6M drilling spool with 4 1/16" 6M outlets (1) 13-5/8" 5M annular 250 / 2,500 • Production Liner 7 3,431 1,184 2.500 9.4 (1)135/8" 5M pipe ram (1)13518 "SMblind ram (1)135/8" 5M drilling spool with 4 -1/16' 5M outlets MASCP - Maximum Allowable Surface Pressure MASP - Maximum Anticipated Surface Pressure BOPE DIAGRAMS Diverter System /1 1 , i r- - - _1 1 21 1/4 "" DIVERTER SFJOL I FABR!- -VALVE 16" KNIFE VALVE ANSI 30G FLANGES 171Page • • CHOKE MANIFOLD TO ELEVATION FLARE LINE VIEW "B" PRESSURE 8 GUAGE t , ----/ ' 3 • -, A,. , '32' 34 33' 2 .,m& --e o F .. ; 4 5 .6 a m 1 N I r G_ - • a ; ` ..r 7 35 � - {31 .. . i ELEVATION ,.. .. .... 1 . . VIEW 11871 4 i li l lit 1s De MIS eke FROM oc as '.. c,o MATERIAL LIST WELLHEAD 18. ELEVATION t ... 17 VIEW "A" I ITEM LD -1/0. 1 DESCRIPTION V 1 1 AS0611161 3.1/16" 10.000# CNV "FC' G. _e = 2 N1188 31/16'x3- 1/16•x3 - 1/16'x3.1. • 2.1/16" 10,000# x 23' OAL STU - , 16 5, -14. 1 1 3 F3092AC 3-1/16 70,000# BLIND LA ND FN .. . e 4 27430 3- 1/16" x 10,0000 VALVEWOI 1 2 'VW -FC" GATE VALVE cc V 3.1/16' x 10.000# VALVEWOI ti ■ II 9 � } • q �, ry r 5 28762 •VW.FC" GATE VALVE x ' II I I/ 41 0 I 14 11 1 (� G N1188 3.1'16' 10.000# STUDDED 5 h 9 d IS *1 , 1 q 7 74192A : 3.1/16' 10.000# BLIND FLAN %IV � � 8 AS0703005 3.1/16' 10,000# CNV 'EC" G, '13 9 P7430 3.1/16' x 10,000# VALVEWOI VWFC• GATE VALVE PLAN VIEW t 0 74005A FLANGED SPACER SPOOL 11 N1105 31/16 10,000# STUDDED C 12 F3092AC 3-1/16' 10.000# BLIND FLAN 13 1 F3092AC 3 -1/16' 10,000# BLIND FLAN NABORS ALASKA DRILLING RIG 105E ' 14 : AS0703001 - 3.1 ,0,0 C o G 15 F3268AE FLANGED SPACER SPOOL 10,000# CHOKE MANIFOLD CONFIGURATION 16 1003900-2- D.1 ,D 1D000k CORTEC NHR' 1178 CHOKE w' 2 MAX ORIFACE 5 5 17 F3268AE 3.1/16' 10.000# x 3187' OAI DOUBLE STUDDED SPACER 18 i AS0703008 1 3.1116' 10,000# CNV "FC" G. 19 AS0703009 3.1/16' 10,0000 CNV 'FC' G. TO 20 AS0703007 3 -1/16' 10.0000 CNV 'FC" G. GASBUSTER 21 . AS0703006 . 3.1/W 10,000# CNV 'FC" G. 22 F3268AE 3.1;16' 10,0008x 2. 918' 10,' t . DOUBLE STUDDED ADAPTEF , s P 23 9384 CPO . a ' C s C 1 - .C1A.rr .. . mom 05A 3 -1/16" 10,000# x 2.9 10,C FLANGED ADAPTER SPOOL 25 AS0703003 3.1 10,000# CNV 'EC" G. 27 ' - .1 26 N1105 3.116 10,000# STUDDED C .b r7 27 _ AS0703010 3-1;16' 10,000# CNV 'FC' G. b p 28 F3092AC 3.1116" 10,000# BLIND FLAN '23 ;24 '25 26 a, \'p' X2 29 . AS0703004 31'16" 10.000# CNV 'FC" G. • " i, ' ■' 30 74005A 31/16' 10.0006 x 32.062' 0/ \ �, e FLANGED SPACER SPOOL ' / 2 -1116" x 10.0008 VALVEWOI d " , 31 30830 •VW -FC' GATE VALVE U 4 D O • - • 2.1 100006x2 1502 WECOTR l I II N -' •_y 32 51209 . FEMALE 'THREAD (TAPPED 2 x 1 2 - 0 i ( D n - A ri _ 3 -1 /16' 10.000# x 14' OAL �=� FLANGED SPACER SPOOL • 1F7 ' 34 - 3.1!16' 10.000# BLIND FLAN 21: 22� 35 31716" 10.000# STUDDED 3 v -WW a r e a 20, l c-a www - 30 ELEVATION - VIEW "A" 18 IP age • • BOP STACK Shaffer 13 5/8" 1 ) 5M Annular \ ( ) Shaffer 13 5/8" 5M Double Ram BOP i =LIIL II_ i ii III — 1 u n DC Ly n,--,k__ fa .. „[Als i .. Pipe Rams Igi KC'i CH3-1---CTI El Blind Rams - 21/16° Kill Line — ' — 1 4' ' AA A 3 1/16" 4. 1 *! :, 41 :111 4 , * '-. 1-/ 1 -1 I O 1 A flimE ,Prft. 1-. Choke Line — '1 'Iiiii a alai h . . .,...._ 3 1/16" 3 1/16" 41/16° 10M 10M Check 10M 4 1/16" HCR 31/16° 10M 10M HCR . IIIIIIIIIIIIIIIIIIII ' _ .. ,, UPPER UNIHEAD _ I ASSY, UHM-ET - . Ai I . 13 5/8-3K STDD BT .. X 13 5/8-5K FLG TOP . 1.2..... - , / 1/16-5K M120 PLUS GV , (P150532) - ,7 • / _.- 3/8" OD CSG CASING HEAD ASSY, C122-EG 2 5/8" OD CSG 13 3/8 SLIPLOCK X 13 5/8-3K mom min P183999 r OD CSG Cook Inlet Natural Cos Storage Alaska 13 3/8 X 9 5/8 X 7 19 P a g e e • • Blowout Preventers The blowout preventer stack is a 13 -5/8" x 5000 psi annular preventer, a 13 -518" 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 BOP rating which is 2,500 psi for all casings in this well per AOGCC 20 AAC 25.030 (e) WELLHEAD EQUIPMENT SUMMARY Component Description Hanger Type Casing Head CASING HEAD ASSY, C- 22 -EG, 13 3/8 SLIP -LOCK BTM CASING MANDREL HANGER, UH -A, 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-IA -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 X7 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 DIRECTIONAL PROGRAM SUMMARY MD Inclination Azimuth TVD North East Grid East Grid North DLS Build Rate Turn Rate Vert Sect Comments [ft) [°] [ - J [ft] IN [ft] [US ft] [US ft] [ft) [ft] [° /100ft) [° /100ft] [°I100ft] [ft] 0.00 0.00 238.95 0.00 0.00 0.00 1421865.02 2392644.66 281844.848 2392882.522 0.00 0.00 0.00 0.00 EST. RTE: 53.55' 400.00 0.00 238.95 400.00 0.00 0.00 1421865.02 2392644.66 281844.848 2392882.522 0.00 0.00 0.00 0.00 KOP 2465.49 61.97 238.95 2085.75 - 522.02 - 867.20 1420988.38 2392138.75 280968.21 2392376.605 3.00 3.00 0.00 1011.20 End of Build / Csg Pt 7997,83 61.97 238.95 4686.03 - 3040.42 - 5050.86 1416759.17 2389698.07 276739.009 2389935.911 0,00 0.00 0.00 5889.54 Begin Final Build & Turn 8727.93 81.52 249.41 4914.21 - 3337.22 - 5672.49 1416132.20 2389412.81 276112.039 2389650.649 3.00 2.71 1.30 6577.46 Tgt Entry / EOC 8752.93 81.52 249.41 4917.90 - 3345.92 - 5695.64 1416108.90 2389404.54 276088.739 2389642.379 0.00 0.00 0.00 6601.96 9 5/8 "Csg Pt 10390.86 81.52 249.41 5159.36 - 3915.74 - 7212.16 1414582.20 2388862.82 274562.03 2389100.669 0.00 0.00 0.00 8206.59 TO Rvsd 31- Aug -11 Comments: Vertical section calculated from a reference azimuth of 241.5 ° taken from surface location to bottom hole location. • 21IPage • I POTENTIAL WELL INTERFERENCE: Clearance elipse of Well Distance @MD uncertainty (ft) (ft) separation (ft) CLU #8 770 8289 370 CLU #9 466 9588 60 CLU #10 839 10391 551 CLU Storage 3 50 0 36 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 - 2,465' X 2,465' - 8,753' X 8,553' - 10,391' X Comments: 22jPage lo In Li Cook kid Natural Gas STORAcE ,- , CINGSA (Cook Inlet Natural Gas Storage Alaska) BAKER In woes.. coo, Poi* Nasba okenli Pennusat Slot 347,04 Reid: Cannery Loop Unit *AM i Wel CLU Storage 4 HUGHES n a Fad*: Gn Stamm Pod diatom CLUB Storage wor P be reference weepers is LW Storage 4 Verson 010 M 'nue vortical depths see referenced to Nabors tillaAC 1,074 Cind System: NAM 1*%1 Alaska SP. Zest* 4 150043, US feet C) "4 Measured depths are rehtionced to Nabors 1135AC fRTI Soar Reference: True north I A Nabors 0 1D 47tri to Mean Sea Lev7i:53.!..k5 feet Scale: True Source Z Mean Sea Level s7 Mud Pr* At Slat S Int 04"( 0 feet Depths are r feet Ito i , r 0 - Afk I orl! MT ' Coordinates ate in feet references to Sfat Created by: fonetnoh on Of -Sep-11 al p • te ; so0 - 1 z Z ■ el. \ *0- 0 7 trlari 1100 .g. 1100.■ Nti e s h t " e irtti2,4:60,re # we- ; › 1- 111)".• NM ... • 4000 411100.- Wynn,* See 1 3 33 . , 3 ,, , 1 3?-,46._ a 5 — _ r liens reenwrest _ MO i. e•z. ano wrens no ns otos Pnirrel le The 11 I I I I I I I I I I I I I i I I I I I 0 600 MO IMO WOO NM 0)00 WM MO NMI 4* MO IMO 4* 7030 7W0 UM *0 OM A) Velocaa Secton p U.. Va• • IMES 0) .10.110. Ift ateurtrerce r Cl", CCC f - 0 CU ■••,1 Cook Inlet Maim! o$ Gas IN tII STORA CINGSA (Cook Inlet Natural Gas Storage Alaska) BAKER Locator. Cook kdel..11ttaba +l(ina Pemnata't, Sim Stator F Cannery Loop UretIS 3 We/ CLU storage 4 MUGIEES Pea* Gad Stowe Pad WWEN'bors' CLU Soaraue 4 qo ors .alp OP �J� �p�p as `•• •• .1" - Ts ( � f 1' t 1 f i o, Stot a/114e f Er' et m floe — 0 • Eroeeere :s*+` d - n VP trim neate .g00 to _ 7 a - 4W eel, WO EWIE 5'.. 3 5N!•:aswp rf � Cr Err; 15L2 Eh Mae e.EReee'M nee 11-44 1.1 �d100 101i 1"Z *ad 111,441p1 • ►:r *no nrelewdE^MIce 111-0401. 1fpi Plot nelete+eae iteepanf is MU Storage 4 Verson /TO —.ores True ve/Orat depths are referenced cos Nabors t MSC f ir% Ord Systerrc PAD 3 ; WI Alaska SP. Zone 4 M!OD41, US feet 14easceed depths are referenced to Nabors 1OfAC iRTF Nor* Re#srenes- True north 'teem *SAC inner 14eanSeeaLestf: Sere: True clotance Veal Sea Lead to Mid bres lad Sbs Slot Mal: 5 feet Depths are vi fret Coer*r* tes are rivetreferenoen s0 Star Creased tsf. jonet, IoM on 01-Sep.r ar 00 N Cook Inlet Natural Gas 1,111111 STORA( , , CINGSA 1Cook Inlet Natural Gas Storage Alaska) BAKER Lourr Coe* ' r et. Alas+ 4.enai Persrsut3 C 722 St *4 1 Carrety Loc:f urit ostAan: weis - C:W S/013Gre 4 HUGHES .30,,,,.. s-,s S'ML7.32e 3■21 ?ere: C1.IJ Stracle 4 =ta -E.41,re-re weltor s ci...i L•tr3,7e.:: .. „Iry cr 41: - 2.e ,e112.6 5sstrs 3:rs I ele , eir441 tr. ' 313 - 05.LC IT GrO C 14033 W A3St3 rs Zrre .1 SIDI 1+42susa VeztrS NE TEVEra..fl IC •422127117.54C ?"" %PM 1 .!E*11 - frCe' -- 212. '43203179 , FM, 22 Vex Sea -Ns 5.1 f..SNII: :..),Vie "rue 1V3rre 7D Mud In!! , AI c:I. ';', la ..1, 7.'1.4..1 _..." re re!! CocrOrres re ^ t.?? rere•enecl= Z.; a' _ Crealmei Os • pre,ret : 1:1-C,e -I' Eastrng 11'. 4220 4100 4260 4066 4630 -7500 -1300 -7200 -7 4000 4 710 4600 4400 4300 4100 4000 4030 .6700 -51930 4400 . e , , , , ..,. 1 I 1 1 .3 1.7' 1.), • * 04- 2.00 ii.. atm .2362 - 10.113-8 30C 0 •". 4260 . - ..., MCC - - -3000 , Mc* 4160 .- ' iszr 4130 33 • .3300 - .. - .330 ..2 0 . , . ... EMI* EOC , - • . .: , ..- ... 410 ■ - 4480 .. , KM IMO PteRnee'rinNelel 11•A6.1 2 • 5:50 V 1000 ■------- ..r• -3000 .- • • - 4600 „Li z , 1103 anti - 0C - • -. 47/30 ------'-. zoo WM - 3800 - C 1;'111°1114 - 70s 14.10 PilobleCI TV Trit 3 1-Aucr ■ i TE IR 3 /-.1.0-1 i .. 111 Lret .4,13 10 .40 .... 40233 6:1 . It 3 4 3+.1%; !). wv1.4. l _ _ _ 41 42.p. - - - -f'44- — - .._ ......, 4200 .. '1 4 2 + --4.4- - .- - s-'514- -- - AM M. 4.1150 ,- - 41.980 s _ I I 1 I I I I I I I I I I I I I . (..` I I I .100 4100 .7980 .71100 4600 -710 -7300 .7200 40e0 4000 4730 4600 4460 4900 411!0 410 4000 4700 4000 4400 Cook Inlet Nafurol. Ga, CINGSA (Cook Inlet Natural Gas Storage Alaska) BAKER STORAC� . ° . Lo V Location: COQ& Slot** aennsul3. Slot ° =eld. Cannery Loco U1rt,NADBB'1 AO CU.) Sbrage 4 HUGHES =acilw Gas Stxaot Pad Welbae: C>GU Sb*aoe 4 _ ��� • Eastng,t i 471 ^ 410 410 400 476 410 415 400 475 4110 4! 410 46 410 .511 40 .76 40 46 0 0 e I I ■ I I I I I I I I I I a I I I I rteretre*cr .e bar a 0.J:t+30ea .era ee ma , /t j 4 SI°l �ti _ 1_00✓ true 111* *Of: at •rt•.cea la Me= 1 =AC MT 3.C1 W0.3' TX∎amo _a. =me 1 ■fa/.. 531VC % Wawa! Sara R , St.Lflasib Mean 'C34; er um-. geft -,slot , b :1af4e rn•s. aues.. f3ffVet :ass — ca Mar= Wan nr c : ele. : se Dean :ea t>D afw me otrl arse•a are nter Cecranae: see nte/ tt.eeeo a act Ansel ra o.ee•a,o. s+ - :er + 1110 tap* Slot 42 -1 a0 b . .. Slot dia p OM 100 s - t00p - • 51114/ 10 e17f 13 of F e— / 2 0 e... 1... '' n V 40 _ .. 80 t a5 4y' —7e 0- J 1 .. O 410 ..-i "' 410 ■ ■10 c e 111c ...An at /1. et we 1 1 1 1 1 c � J 1 1 a 1 O r a a a 1 t a a 475 410 461 400 475 410 441 400 475 460 4111 410 4R 411 .10 405 40 40 40 0 ............... Easing 1tf cu CrO (0 m r r 0 r m a Clearance Report VPU R n Cook Inlet Natural Gas CLL " StorageiVersion =l+D m ) I R AC �, Closest Approach BAKER m Page 3 °C98 HUGHES m REFERENCE WELLPATH IDENTIFICATION 1 0 Operator C LNGSA (Cook 'mkt Natural Gas Storage Alaska) Slot Slot aft '� Area Cook Inlet. Alaska (Kenai Peairtsula) Well CLL Storage 4 Field C annerr Loop tnir (`ADS) Weibore CIA" Storage Facility Gas Storage Pad C A%LC1ZATION RANGE & CLTOFF From: 0 OOft MD To 10590.866 MD I C - Cutoff: (zone) OFFSET WELL CLEARANCE SflIM ARY no OfEerWegpaik . :deetna) ripe sysess •, ukd eai. arsest tppree&r we C-C Crewasre Distaste ACR Ellipse Separatism Distaste Rd Ma C-C D1tear Ref MD of 5rs Ma EH Sep ACE Offset Offset Offset Offset Me MD Clew D s1 frost MD Me E1 Sep Dl Sep Dtrg fres States Facility Slot WeD welftere wa Inl Ift] on If►1 MI tni Crr> Ssoa.te Dad Slot =5 C ' S-orsaa 5 CL St.raae ' 7laVets= ef :0000 49 66 300.03] 300 00 3617 300 001 PASS G±.= S'a:Mee Pa' Slot =3 CLt Surate 3 CL:' Scaiaae 3 CL" Saurr_e =3 1.7ess =11 0.0C 50.07 3500.00 :0000 36.40 3400.001 PASS Gas Sso;aee Pa! Slot =3 CU' Sxrare 3 CL St.n=. 3 OT» X3457 111-"^ 0.00 50 0' 0.00 406 56 3695 1500.001 PASS Pad =3 Ct=o C11:=9 CL' P acu) 165-9100 P598.13 26600 953S.I2. 0 60.42 9593.101 PASS Gat stomp Pad Sla#e? CLVSsesp2 aA5 Stwep� 2 !tF ®ew+t9 lOfi06 10034 MOAN 10000 1616 40000 PASS Gas Srora!e Pad Sloc =1 CLt susses l CLtt scamp 3 P5 VOW= =1 :0000 15035 400.03 300.00 33636 400 00 PASS Pad =3 CI-L.7 CL' =1 CLL'=3 MLD 3004 3 :5906 7 70 5'_ 9259.06 2395.94 369.36 8 PASS • Na =1 Ct=10 CLt: =1,0 CU: .1C. 89370 1863150' 30390 96 33929 10390.85 10390.96 551.03 10390361 PASS Pad =1 CIt* C1t;=5 CLL. St 71 0.3511' Dviaeres 3600 - 13410= 9:5403 99153 9253.0: 9223.40 615.93 9223.401 PASS SL713 -8 n113 -E 38 111134 1 3-E Sidemen t> nx,o-55.r 193!0.76 123419 1039016 10390.16 77160 3030016 PASS Pad =1 C13 =3 CU: =I. CLL. =1 90143 0- 1 30257.50 150315 101'67.50 30330.73 3109.54 10130 7 31 PASS Pad =I CLL: =1 C11=1 CLLI=3 ?.d St WD 9303- :033:' 30270.47 150315 10 30197430 111001 I019700 PASS Pad =1 CLL: =1 CIL =I CLL na. 575030 10`7.047 1503L' ]0'20.47' 2019700 111001 10197.001 PASS Pad =1 CD; 06 CII=6 CU' =5 3.938 195- 3 10 74 1506!0 7430.63 7 446.82 1129.93 7446231 PASS Pad 01 a CLr.T QL W 740 M D 197-10162." 7261.31 216611 7261. II 7262.50 177915 7202.50 PASS Pad =3 CIt =3: CU: =II CU: =31 3032) 09305 353230 223535 3030 CO 48409_ 298805 4340.921 PASS Pad =3 CL =7 CLt =4 CLL• =S PCr3US 0- 18500' 0 00 3534 28 000 30000 2111.67 100 001 PASS Pad =3 CIL =3 CL' =3 CL.'- =3 PG3 SS 0- 17325' 000 3339 3E 400 00 :0000 3 r .57• 400001 PASS Pad =5 CLt =3: CLt =L_ CLt: =12 23stirnr*MEDD 0 -33415 353_3 33d5 51 155'_3 3_°323 3 :43.97 153231 PASS N -4 d 0A a 1 ma Z Z Cook !stet Natural Gas Plannecl'4�"ellpath Report V/Iiill v STO RACE E ,' ` CIA Storage .1 Version ??10 BAKER • .. Pair l of a HUGHES r REFERENCE RELLPAIH IDENTIFICATION 6 0 IP Operator C LNGSA (Cook lnkt Natural Gas Storage Alaska) Slot — Slot 4 Area Cook Inkt. Alaska (Kenai Peninsab) Well CU Storage J Z Field C annery Loop Unit (NAD831 Wellbore CIA Storage 4 XI _ m Facility Gas Storage Pad • _... O REPORT SETUP INFORMATION .4 Projection System INADS3 z TM Alaska SP. Zone 4 *S0041. C5 feet Software System R ellArchitect8 3.0.0 North Reference (Tree User Jonethoh Scale ;0.999954 Report Generated 01- Sep -11 at 13:39:44 Convergence at slot 11.06= West Database 'Source file ellArchitectDiCLi Storage 4.im1 RELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[fit] East[ft] Easting t S h] 1 Northing[i S fr] Latitude Longitude Slot Location 4615.67 87115 1421865.0: 1 239.644.66 60'32 151 °1_2'50'28 "Q Facility Reference Pt i 14129!2.83 j 2385198.60 60°37'52.O1S"IC 151°15'45184"W Field Reference Pt 1 1412992.83 ! 2383198.60 60 :31'52.018"N 151 °15'45.884 "a WELLPATH DATUM • Calculation method Minimalist curvature 'Nabors 105AC (RT) to Pad Eleration estnnated 53. 55ft Horizontal Reference Pt Slot INaixers 105AC (RT) to Mean Sea Leyel 53.55ft Vemcal Reference Pt Nabors 105AC (RT) jNabors 105AC GM to Mud Line at Slot (Slot 4) 53.5:ft MD Reference Pt e _ __..... _._. Nabors 10=3C (RI) ISecuon Oriem N 0.00.E 0.00 it Field Vertical Reference Mean Sea Lerel Section Azimuth 211:0` N m d 00 to Iffi'd111 Cook Inlet Natural Gas Planned Wellpath Report STORAQ,E - , ("Li Storage 4 Version *10 BAKER Page 2 of 7 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator CLNGSA (Cook 'mkt Natural Gas Storage Alaska) :Slot Slot 04 Area Storag C c a o nn ok e lia:t. L00 .4, p la t s . k n a it ilK (N e AD naie s pisiasu l b) _., Well C LI: Storage - eld Fi *enure CLL Storage 4 ... ,.... Facility Gas Storage Pad 0 WELLPATH DATA (109 stations) + = interpolatedtestrapobft41 station - - MD -- ilicitiimi rAiiiitit Iiii !Yen iiii 24rib r East -r- t - eid East f :Carib Latirode . Leughiteile ' DLS Bad Rate Tura Rate IC *assents Ift1 i'l ! ii PI i PI ifti I MI I IrS fei I its fli j°,1110f1 ( ( 0.00 0.0001 238.954 0.001 goo ago 8 00 I 1421S650 2392644 66 60°313 151'12'50.223 0.00 0.00 ODDEST. RTE: 53.55' 100.00+ 0000' 233.954 100.00 i _ 0.00 ago .__ 0.00 E 1421S65.02 239264466 60•323 151`1230.223 0.00 0.00 0.00 200.00+ 0.000, 233954 200.001 0.00 ago too i. iittAs65.0.: 239264466 60°32V. 4g2"N 151'1230.223W 0.00 ' 0.00 0.00 300.00 0800j 233954 300.08! 0.00 0.00 Igo : 1421365.e 2392644.66 60°323 151'1250.223 090 0.00 0.00 1 . 400.00 o.000L 238954 400.001 moo 0.00 0.00 ilait? 239261416 00r3237.44201; ispirstrorw too 0.00 0.001.00 500.00+ 3.0001 233.954 499.95 r 2.61 -1.35 -2.24 i 1421362. 2392643.35 60°323 151*11130.273iii • 300 3.00 0.00 • • ' - - - 60000+ 6000 238.954 599.631 1045 - -5.40 - -896 1421055.96 2392639.43 • 60-323 151`123040711: 3.00 3.00 0.08 700.00+ 9000 230.954 6987 ' 2349 -1113 -20.15 3421344.66 2392632.91 60°32'3 151'12306311 3.00 3.00 0.00 $0000+ 12.000 238.954 79 OS . 41.69 -21.52 -35.76 , 1421S2S.8 7 2392623.80 60-313 1511150.943W 3.00 3.00 0.00 900.00) 15.0001 233.954 19431 ! 65.01 ' - 33.56 ' - 55_751 142111011.66 2392612.13 SO•3fl7.t111It ilmrsiiarw 3.00 3.00 000 1000.00+ 1S000 233954 990.18 93.3$ -48.21 -80081 1421784 136 2399 60 967N 151'1'231.829W 300 3.00 0.00 1100.00+ 21.000 238.954 103443 I 12673 -65.42 -105.63 , 1421 2392581.26 60°3136.797N 151'1232.401'4' 3.00 3.00 0.00 20000+ 24 000 238.954 117631 I 16495 -S5.16 -141.46 : 1421722.02 2392562.13 3236603"N 1511253.05671V 3.00 3.00 0.00 1300.00+ 2 233954 126 061 20 96 -1117.36 -L7834 , 1421684 7 4 2392540.62 60°3136334N 151'1233. 3.00 3.00 0.00 1400.00) 30.0007 233154 135493 25512 -13196 '1922 1421643A1 2392516.7i 110214.1,4W' 15112'54.61M 340 3.00 0.00 - • , . _ 1500. 00' 33 COO 23S954 1443 1S 30 -153,91 -263 9S 142159$ /7 239:490.66 6r32353 151`12`55.506_ W 3.0 3.00 0.00 1600.00+ 36000 233.954 152159 : 364.39 -180.11 -332.50 1421549.12 239246135 60 1511236.476M" 3.00 3.00 0.00 :700 00+ 390001 230.954 1601.91 . 425 20 -219.51 -364.65 1421496 40 2392431.93 60°3215.2S0N 15112'5 3.00 3.00 0.00 1800 00 32C00 233054 167 : 4900' -253.00 421329 3-14406 2392399.-r 60"3:034.95CN 151`1230.631 300 3.00 000 1900.00t 45.004 238 954 050_47 55813 -88.49 -479.25 1421380 55 239236507 60°3234_600N 1511259110'W 3.00 3.00 tvog 2000 00- 40.0001 238.954 1019301 631:9 -325.90 -54139 , 142:31 2392320.82 60°32 131.13111.05211: 500 3.0C 0.00 210000+ 51.0001 233.954 1834.24 I 707 .25 -365.11 -60633 . 3421251 58 2392290.82 60°3233346N 15113'02.3541V 3.00 3.00 0.00 2200.00+ 54.0001 233.954 1945.11 I 7 86.49 -106.02 -674.50 1421183. IS 2392251.1 60 1511303.713W 3.00 3.00 0.00 2300.00+ 57.000: 238954 200E274 I 868 -44,032 - , 1421111.81 2392209.93 60'3233.024"N 15/'13135.1241V 3.00 3.00 0.00 liotoot 46.61501 231.954 2o53:1 -492,746 IiiiiiiirTA 2i92iet.31 &111 ifos ofv Itati 166 0.00 2465.49 61 238.954 2035.75 i 1011.20 -52202 -86720 ,. 34209 2392138:75 60332300"N 15113117.566"W 3.00 3.00 0.00 End of Build Csg Pt NJ <0 2500.00+ 61165' 238.954 2101.971 10.41 43 -53 7 3 -59330 : 1420962.00 2392123.53 60°32'32 146"N 15/`1313.037"1 0.00 0.00 0.00 - 2600.00+ 61.965 238.954 21489 112930 -503.25 -96392 1420335 55 23920 60°3231 .697"N 15113'09.5991V 0.00 ' 0.00 0.00 2700.00+ 61 565 233.954 219595 : 1217 9S -623 "r -104454 14 Il 2392035.29 60°32'31249"N 1511311 I1l'1V 000 • 0.00 008 01 cpa 2800 00Ir 61.965 231.954 2242.98 1306.16 474.29 -1120.16 1420732.66 B91991.18 60-3234801N 1511311623"W 0.00 000 0.00 rD ■Illb. Cook Inlet Nalural Gas Planned Wellpath Report Mail STORAQE _ • ('LIT Storage 4 Version *10 BAKER Pan 3 of 7 HUGHES REFERENCE WIELLPATH IDENTIFICATION Operator C1NGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot 04 Area Cook Inlet. Alaska (Kenai Peninsubi Well C LI: Storawe -3 • Field C annery Loop rnit (NAD83) Wellbore C LIT Storage 4 _ _ _ Facility Gas StOraZe Pad - .. . WELLPATH DATA (109 stations) 4 = interpobted4xtrapolated station sin '. parasoca 1 atatai n vat Sect Saab East i Grid Era -- OnailDertli Delft& t Longitude I DLS Dead Rate Tura Rate totameats ' iftl n : n Pi lftl MI lftl it's In , it'S ft' I Platen! rieefti F 2960.60/ 6: 965 133.954 2239 9S 1394.33 -'19S2 -1195. 1420656.12 2391947.06 60°3230.351"N 1511314.134"W • 0.06 6.06 0.60 3060.60* 61 965 233.954 2336.9S 1432.52 - 4r1.41 14205 2391902.94 60`'32'29.904N 151'13'15.646W ' 0.00 0.06 0.60 3160 C0I 61 965 238.954 1353.93 150 - 810 S6 4337 /420503.33 1391353.33 329455N 351'33'1 . 0.00 0.00 0 CO 3260.601 61 965 233.953 2430.93 1653.33. -35633 -:42265 14211426.35 2391314. 60°3129 60 151'1313.670W i 0.00 0.00 0.00 3300.00t 61 965 135954 2477.9111 1747.06 -90190 -1408.27 1431350.44 2391770_59 60327835erN 151132031t 000 0 00 00 ...,.......„.., 0. 3460.60* 61 965 233.954 2514 99 1333.23 -9-r 15'3.S9 14202 2391726.43 60°3223.1:0"N 151°13'11 .693"W 1 0.00 0.00 0 CO 6000' 61 965 238.954 2571.99 1.134] 992 4 4 -1649.51 142039 139163236 63°322 661N 351'13'13,205"W I - 0.00 0.06 0.60 3660.00* 61.965 233.954 261899 &11.59 40354' 4 14 :420321.10 2391633.24 60°322 224"N 151'1324 '16W : 0.00 0.00 060 3 61.965 233.954 2665 99 1099 -7 -105339 -1360. 1423644.66 2391594.13 60°32'25.765N 153'1326.223W : 0.00 0.06 0.60 3500.00t 6L965 235.954 271299 218735 - 112951 - 117638 141996821 291550.01 603T26 317N 1511377 740W 0.00 000 000 396060' 61.965 233.954 2"59.99 12 -11 495200 1419391. 2391505S9 60°32'25 S6S"N 151*13'29.7.51W 0.00 0.06' 0.60 4060 GOT 61 965 233.954 2S0699 1364.31 -1220.55 -zo27.61 141931531 1391463. 60°32'25 420"N 1511330 763"W 0.00 0.00 000' 4160.00 61.965 23S 954 2354.02 135249 -1266.6' -2163.25 1419733.33 1391417.66 60°3224.9 351'1312.2 , 0.00 0.00 0.00 426060* 61 965 23S.954 2901.00 1540.66 -1311.59 -217S 3 1419662.43 23913'3.55 603224513N 2511333.756"W 0.00 0.00 0.00' 4300 61.965 238954 294500 262024 4357.12 - 2254.49 1419585.99 291329 43 603274.075"N 151'13'35298W 000 0.00 000 0 • 4400.60T 61.965 233.954 2995.60 717.02 -1401.64 -2330.11 :419509.54 239125531 6032'23.616"N 151'1336.S39'W 0.00 0.0C 000 4560 00* 61 965 133.954 3042 00 2305 26. -1443.36 -2405. 1419433.10 1391241.26. 603223.1 151'13'33.321W : 0.00 0.06. 0.00 4600 00 61 965 233.954 3039.00 2393.35 -1493 ES -2431.36 1419356.65 2391197.03 60°32'21 72921 151'1339 533W ; 0.00 0.00 0.00 4760.60' 61.965 233.954 3136 00 2933.56 -1539.20 -2556.95 :419230.21 2391152.96 60°31 1511341.344W I 0.00 0.00 0.00 400.00t 61 905 238 954 3113.00 30� - 1534_72 263260 1419203. 291108S5 60`3271332 1511342.85674 000 0.00 0.00 4900.00* 61 965 233.954 3230 01 3157.91 -163025 -270312 1419127 31 2391664 73 60°32'21 .334"N 151'3344.367W ! 0.00 0.00 000 5000.00* 61.965 233.954 317 3246.09 -1675. - 2'83.S3 1419050 37 2391020_61 68°3210.93510 1513 0.00 0.00 0.00 516060* 61965 233.954 332301 3334.27 -1 -2559.47 14139 139D9 6032'23 43 151134 390W ; 0.00 0.00 0.00 - 5200 00* 61:965 133.954 3371 61 3422.45 -1 -2935.09 141339 95 2390932.38 60"32'10.033N 151'13 902W : 0.00 0.06 060 5300.001 61.965 238 954 3418.01 351063 - 151233 - 301071 141E82133 2390811326 6r3219391TN 151'1350 413"6' 000 r ' 0.00 0.00 5400.00 61.965 23S.954 3465.01 3593.31 -)S5 55 -3036.33 1433 2390344.15 60°3219 141"N 151'1351.925V I 0.00 0.00 0.00 (A.) o 5500.00* 61.965 233 954 3512.01 363699 -19033 -3161.95 :413665.64 2390300.03 611°32'13 693"N 151'13'53.436"W I 0.00 0.00 0.00. 5600.00* - 61.965 233.954 3559.02 3775.17 -1943.90 -3137.5 :413591.20 239D'5591 611°31:13.244"N , 1511354.943W ! 0.00 0.00 OM r60.00* 61.965 233.954 606C 3363.34 19441 -3313.10 :413515 7 5 23907:3 St 613°32 151'13'56 459w : 0.00 - 0.00 - - 0.00 - - ' - 5800.00t 61.965 238.954 36531C 395152 -2039.94 -33101,1e 141143931 M90667.511 605217347N 15r1317.971" 0.00 0.00 0..00 on rro 11)1 Ail Cook Inlet Natural Gas Planned Wel 1path Report STORAQE ; , CU' Storage 4 Version #10 BAKER Page4 of7 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator C INGSA (Cook Islet Natural Gas Storage Alaska) "Slot Slot 4 Area Cook Inlet. Alaska (Kenai Peninsula) Well C Lt Storage -I • Field C annery Loop Unit (NADS3) Wellbare C Lt Storage 4 Facility Gas Storage Pad WELLPATH DATA (109 stations) 4 = interpobte&eauvolated station MD riscliustieirizinutli r TD - Vert Sect 'lb Eat Grid East Gold :Carib 1 Latitude 1 Lestitiad e ' DLS Build kat, - Tem Rate lic amounts ifti ' (9 i n 1 rfn lei ; ifri tat Its f0 (US ft) . . (°.10681 r11111114 rleeft) 5900 00 61.965 235.954 300.02 4039.7 -2055.46 -346444 1415362 56 23986235 673216.599'1 15113'59.452"W 0.00 000 0.001 600000+ 61965 238954 3 02 4127.85 -2130.98 -3540.06 1415286.42 2390579.45 603216.4581 151`1400.993 0.00 0.00 0,00'! 6100 00+ 61 965 235 954 3 02 4216.86 -21 -3615.68 1418209.9 239853533 603216.002N 15114'02.505W 0.00 0.00 0.001 6200 00+ 61.965 235.954 3541 Cl . 431423 -222202 -3691 31 1418133 5.1 2398491.21 ' 60'32'1.5.553 151'1404.036W 0.00 000 0.00! 6300.001 61.965 23119541 388103 4392.42 -6735 -3766.93 14)8057.01 2390447.10 6173115.185N 151-14135.527w 0.00 moo mai ......, 64000'0+1 61 965 23S.954 3935 03 4330 60 - 2313.07 - 3842.55 1417930 64 23984029S ; 6(f3 i46562 151`14'07.039'W 0.00 0.00 0.001 6500.00+: 61 965 1.3s 954 395203 4565 -77 -2353.59 -391s .r 1417904.19 2390355.5 ' 673214.2051 151'1408.550'W 0.00 000 0.001 6600.00+i 61.965 235.954 4829.03 4656.95 -2484.11 -3993 79 1417527.75 2390314.75 6032'13. 15114'10.062W 0.0C 0.00 0.001 6 00+; 61.965 23S 954 4376.03 4'45.13 -2449.63 -486942 1417 2390273.63 . 6032'13.31I"1 15114'11.573'W 0.00 1200 0.001 6800.00+: 61.965 2314954 4123.03 433331 - 249115 - 4145.04 1417674116 239022652 Gerrnissrx 151•1413.084,01 0.00 0.00 000 690000+ 61965 235.954 4170.03 4921.49 -2540.67 412066 131'59$41 2393182401 60327.2.414'1 1511414.595'W 0.00 000 0.00 000.00+ 61965 23S 954 421 04 5009.6" -2536.20 4296.28 14175219 2390135.2S , 609211.965"1 151'14'1610 0.00 0.00 0.00, 7100.03+ 61965 235.954 4264 04 5097 55 -2631. 43 1417445.52 2398094.37 E01211.516'10 15114'17.618M 0.00 0.00 0.00 7200.00+ 61.965 238954 4311.04 5156.82 -167.24 -4447.52. 1417369 08 239005005 ' 60'3211.0652: 151'1419.129"W 0.012 0.00 0.001 . .... _... 7300.0iW 61965 231954 4352_04 527420 - 272176 - 45B.1.5 141732_63 2390005.93 601210.61YX 151'1410.64118' 000 0.00 0.00 III 7.0.Cliti 61.965 235.954 -240504 5362.35 -2763.25 -1595' 1417216.19 2.359961.82 . 6092'10 I'l ''N 15114'22.152W 0.00 000 0.001 7500.00+1 61 965 233.954 4452 04 5450.56 -2E310 467439 1417139 74 135991'70. 60'32'89 7 22 - .N 1511423.6631T 0.00 000 0.001 7 600.0011 61.965 238954 439904 5535. -2559.32 4 1417063.30 2339573.5S 60'3209.27-211 151'1425.174W 0.00 0,00 0.001 00120 61965 235.954 4546 05 562692 -290435 4525.63 141698635 235982947. 60`3213.525'N 151'14'26.685'W 0.00 000 0 001 7800_00+ 61965 231.954 4503.05 571110 - 2950.37 - 490L26 1416910_41 2341971535 60•3218.376 15114"11.197"W aoo aoo 000 7900 03 + 61 965 238 954 4640 05 5503.25 -2995.59 49 SS 1416533.96 23$9 60*32'8 15114'24.705W ace 0.00 0.001 799 : 61.965 230.954 4686 03 5389.54 -3040.42 -505036 1416 2359693.071 603157.4591 15114'31.156'W 0.00 0.00 0.009epn nag Budd & Tani S000 .88t 61,021 2.3S.959 468 C5 5S91.45 -3041.41 -5052.50 1416 51 235969712 60920 1511431.219W 3.00 2.63 1.631 S100.0 64 al240.554 4"'91 5930 -7- .30S6.36 -5129.":3 1416693$ 2359653.60 ■ 603207.036'N 151`1432.762W 3.00 2.64 1.60r -- 1 8100.00+ 67318 242111 477160 607111 - 313015 - 520988 141659833 231961130 60`3706.605,1 151'14'3436CW 3.00 2.66 1.51 3300.00t 69.955 243.580 483900 6165.11 -3r1.64 -5292.75 1416514.59 2359578.35 603236.1S61 351`1436.020 3.00 2,6 1.47 3400.00+1 72.669 245.000 483102 6259.82 -3213. -5378.10 141642880 2359530.85 ! 609235. 151'1437.7261X 3.00 2.63 1,421 cr,J 850000+r 7- 5 - 361 246.373 4565.55 6355.69 -3253.29 -5465. 141634049 2359492.911 60'3235.391'2Z 1511439.476'710 3.00 2.69 1.351 F- ..._ S600.00÷1 78.060 247.724 4891.54 6452.54 -3291.23 -5555.32 1416250.23 2389456.63 1 603285.01 )5P14'41.26 3.00 2.70 1.351 8700.00+ 80766 249.042 4909.91 6550 12 - 3327.43 464619 14161511.11 n119422.12 . 6737.04.660 151'14'43.0931V 100 2.71 132 __ - 1 __ , . _ _ ______ _ _ . . ... . .... w ao ro IF/di Cook Inlet Nalural Gas Planned Wellpath Report STORAQE .,,, , CLU Storage 4 Version :010 BAKER Paw 5 of 7 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator C LNGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot M-1 Area Cook Inlet. Alaska Menai Peninsula) Well CUL' Staral. -1 - - bed C annery Loop Unit (NAD83) 11. C 1.1: Storage 4 Facility Gas Storage Pad WELLPATH DATA (109 stadons) ÷ - interpobtedtextrapolated station SID lackaatios Azimstif ITD Vert Sod r - Nor* East .... Grid East 1 Grid !Cora Lae : Lenity*, DU %Si Rate Tura Rate Commtsts 90 ri Cl , lel Ifil i lel If low 6 v, r w ciftj i iaa maimmmsumsmire ralifti rale*/ rie.fq ST2 $1 522 248.487118M1 65.774s rallan . ... 3.00 2.71 1.30T:tam. EOC $752.93 51.522 249.407 491 6601.96 -3345.92 -569564 1416105.90 2339404.54 ! 60•32,44 15114'44.0711V 0.00 0.00 0.009 5 rCsg Pt $800.00" S1.522 249.407 4924.33 664S r -3362.29 -5 1416065.02 2359355.97 60•32'04 .316N 151`14'44.942 0.00 0.00 0.00 5900.00 S1.522 249.407 4939.58 64604 - 3397.08 -5331.31 • 141597:11 2359355.90 ! 632035 1511446. 0.00 0.00 - 0.00 9000.001- sisn 249487 495432 604$ 00 - 3431.27 - 5924.40 1415117661 232932113 60•3203.630,1 15114411.663W 000 0.00 0.00 9100.00* 51.522 249.407 4969 06 6941.9 -3466.66 -6016.9*. 1415735.40 2339299. ; 60P32 1511430.493W 0.00 0.00 0.00 9200.00 31.522 249.407 4933 .30 7 039.94 -3501_45 -61095' • 141569219 2359256.65 . 603202 944N 1511452.343W 0.00 0.00 0.00 9300.00t S1.522 249.407 499S 55 137 -3536.24 -6202.16 141559S95 2339223.61 : 6CP32'02 601"N 15114341941' 0.00 0.00 0.00 - 9400.00+ S1.523 24940' 5013.29 7 235.S - -35 .629V'4 , 1415505. 2339190.53 6032'02 25S"N 15114563341V 0.00 - 100 - 0.00 _ . 9500.001- 31.523 249.407 502103 733324 - 340522 - 6311733 ' 141541251' 2300157 46 60•32'01.915"N 1511457119CW 0.00 0.00 0.00 9600.00 S1.523 249.407 5042.7 7431.81 -3640.61 -6379.92' 1415319.35 2359124.33 i 6C32E1 5 151'14'59. 0.00 0.00 0.00 9780.00* S1.523 249.407 505 7529. - 36 1 '5.39 -657251 1415226.14 2339091.31 - 6r32111L .2.23,1 15115'01594W 0.00 0.00 0.00 9800.00 51.523 249.407 5072.2.6 7 62 7 . 7 4 -3710.15 -666.5.09 141513294 235905324 ! 60°32110.5.85 151`15113.445 000 .-- 100 0.00 - - - - 9900.08+ 31.523 249.407 50S 00 7251 -374497 -6 1415039.73 2339025.16 . 60'32e0.542 151`15135.514 0.00 0.00 0.00 10000.001- 111523 249.407 5101.74 7123.61 - 3179.76 -05027 ' 141491632 2811092.0 6,11211019YN 1519507.145"91 0.00 0.00 000 101110.00 31.523 249 407 5116 7 921.65 -3314.55 -694236 141435331 2335959.0 I 60P311 15115`03.99511 0.00 0.00 0.00 .._ 10200.00+ 51.523 249407 5131-22 S019. 61 - 334934 - 7, : 1 35 44 1414748.10 233392594 . 6V3159 _5 t 3"N 151.'1510.34 _ _ 5 BOO BOO 0.00 . .._ 10380.80+ S1.523 249.407 5 t45.9 81:7 -3384.13 -712103 1414666 59 233359137 60'31'59.1 151'1511695 000 100 100 _ 10390.S6 S1.523 249,4071RM S2 PlINNIMMOIC,.1110rIPIMIrlignerNMS4111/11////4 0.00 0.00 0.00113 Rrsd 31-Aug-11 HOLE & CASING SECTIONS - Ref WellItore: ax s•sra 4 Ref Welipath: (11 Storage 4 Verdes 44 Stria: Diameter I Start MD 1 End MD interval Start TVD tad IMO Stan N S Start 1 W Ltd N S End LW I CM I LK ifig CM (ft] CM (ft] Iftj If') 20in Conductor - 1 ---- TO0701 100.00 100.00 000 100.00 000 0.00 000 0 00 1 000 . .. ... .. 13.375in Castng Surface 000! 2465.49 2465 49 000 2085.75 000 0.00 -522.02 -867_20 0 u.) . .. ... r... ,..A..... ...r as,..mg ? ....tertnediate P 0 001 8752.93 875193 0.00 4917.90 0.00 -3345.92 -5695.64 - 7in Liner i 8552 931 10390.86 1837 93 488129 5159.36 -3273 58 -5512.90 -3915.74 -7212.16 -° -- ea on (n Cook Inlet Natural Gas Planned NVellpath Report 111111 STORAQ.E, ., , , CLI: Storage 4 Version till) BAKER Paee6of7 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator C LNGSA (C ook Inlet Natural Gas Storage Alaska) Slot Slot $41 Area Cook Inkt. Alaska (Kenai Peninsula) 1Vell (LI: Storaze .1 Field Cannery Loop ITnit (NAD93) Wellbore (L Storage 4 Facility Gas Storage Pad • TARGETS Name MD TVD North Eir:t Grid East Grid North Latitude Longitude Shope ifili ift] 'hi :ft: 7:S ft] its ftl 3; 4914 21 -333 21 -5672 49 1-11613129 23394131 4111.15 N 151 circle ' 1) P2e Rvsd Preferred Tgt Heel M-Au!-1I , s 10390.36 5159.3f -3915 7 4 - 16 1414rrs32.20 2333361S: 61411105S 151'15'14 376 circle 1 2) P2c Its Preferred Tgt Toe 31 -- . - SURVEY PROGRAM - Ref Wellbore: CLt Stomp 4 Ref Welpide CUE Storage 4 Verinn .113 Stirt MD End %ID Po:itiesall Uncertain,' Model Lo: Name C omnient ---- - Wellbore [ft] Iftli , _ _ - I .__ __ 5355! 2465 49NraTral ildazC cart CLU Storaze 4 „...... ■-- 2465 491 3752 93_AntoTrak 63 I Standard) ICU: Storage 4 , - - - - S752.931 10390 36 OnTral ,Startflard ICU- S totage 4 1 110 (A.) (..0 -o 1 w cro rD • DRILLING FLUID PROGRAM SUMMARY Casing Hole Depth TVD Mud Mud Weight Additives Size Size (MD) (TVD) System (ppg) (in) (in) (ft) (ft) Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL 13.375" 16" 2,465 2,086 GEL SPUD 8.8 - 9.4 Flo -Vis, PolyPac UL,KCI, SafeCarb (F /M) , Barite, LOTORQ Caustic, Conqor 404, 9.625" 12.25" 8,753 4,917 3% KCL FLOPRO NT Sodium Meta Bisulfate 9.2 (9 Flo -Vis, PolyPac UL,KCI, SafeCarb (F /M) Barite, LOTORQ, Caustic, Conqor 404, 7" 8.5" 10,391' 5,159' 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 (SafeGarb) will be used to control seepage losses and aid in wellbore strengthening. DRILLING FLUID SPECIFICATIONS Plastic Yield API - Funnel Depth TVD Mud Wt. Viscosity Point Fluid Loss Viscosity LGS (ft) (ppg) (cp) (Ib /100ft (mII30min) (sec./qt.) pH 0'- 2,086' 8.8 -9.4 15 -24 >30 <18 70 -150 8.0 -9.0 <6 2,086'- 4,917' 9.2 -9.8 10 -16 12 -18 5 -7 30 -50 9 -9.5 <6 4,917' - 5,159' 9.4 -9.8 10 -16 12 -18 4 -6 40 -50 9 -9.5 <6 Comments: None 34IPage • . 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 Holee Top of cement Ann Vol WOC Ogee Size To TOC lime (in) Size , (bbls) (hrs) Excess MD ND (in) MD ND ( %o) (ft) (ft) (ft) (ft) 13 3/8 2,465' 2,086 16 0 0 185 5 75 9 5/8 8,753' 4,917 12 1/4 0 0 !J 24) 7" L 10,391' 5,159 8 1/2 8,553 4,881 41// 8 10 _ r Casing TOC Mix Water Compressive Size Slurry Cement Density Qty Yield Slurry MD WL FW Strength (pal) (in) Description (Ib /gal) (sus) (cu.ftlsx) (bbls) (» (cc) (%) Qty Type 8 hr 24hr (gal /sx) 13318 lead Type U _ II ° 12.2 665.00 ' 2.35 279.00 0 13.7 Fresh NA 0 200 400 414 tall Type VII 15.40 276.00 / 1.22 60 2,098 5.5 Fresh 208 0 500 2,700 lead Type VII 12.00 695.00 ' 2.48 276.00 3,700 14.73 Fresh NA 0 200 400 9 5/8 tail FIexSTONE 14.0 172.00 ' 1.31 40.00 8,197 4.20 Fresh 30 0 0 791 Y. 2nd stage Type I/11 12.00 521.00 ' 2.32/ 223.00 0 14.73 Fresh NA 0 200 400 7 FIexSTONE 14.0 242.00 I.E 57.00 8.553 4.35 Fresh 119 0 400 1,124 230 9 5/8" cementing will be performed in two stages using a hydraulically actuated stage collar at approximately 3,700' MD. Comments: See cement prognosis for details and spacer specifications. 35IPage • • 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. 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. 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 V4, i'an,t. 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. BIT SUMMARY Interval MD Size Type Manufacturer Model No. IADC Recommended Estimated WOB - RPM ROP - Ft/Hr 0 - 2465' 16" ST HCC VM -1 115 55 klbs - 250 120 2465' - 8753' 12 1/4" PDC HCC QD505XX M223 38 klbs - 175 100 8753' - 10,391' 8 1/2" PDC HCC QD505X M223 25 klbs - 175 75 Comments: See bit prognosis for additional Information. 36IPage • • HYDRAULICS SUMMARY Rig mud pumps available are shown below. Max Displacement Qty Make Model Liner Stroke Prress@ 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 Hole p Standpipe Minimum Nozzle Depth•MD Size Rate Pressure AV ECD Size Remarks (ft) (In) (gPm (psi) (fPm) (PPM (32nds) 0 -2,465 16 650 2,000 70 +0.2 16 -18- 18 -18 -0 2,465 - 8,753 12.25 650 2,000 130 +0.3 5 x 13 8,753 - 10,391 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. 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. 37IPage • • PROPOSED COMPLETION SCHEMATIC CINGSA CLTT Storage 4 Proposed Completion Schematic FMC Wellhead - 13 5/8" 500011 Multibowl FMC Trcc - 7" 500011 complete with SSV 20" 13311 X56 driven to 115' TVD /1 15' MD 7" 1lalliburton Wirclinc Retrievable SSSV (a:. 150' TVD /150' MD . •' 13 3/8" 681! J55 BTC Surface Casing (rr 2.086' TVD / 2465' MD 16" hole / Cemented to Surface .r • • 7" 26i/ L80 Vam Top Tubing 7" x 9 5/8" Baker ZXP Liner Top Packcr with 10' seal bore (ri' 4,881 '' I'VD i 8.553' MD 9 5/8" 40# L80 BTC Intermediate Casing (a, 4,917' TVD / 8,753' MI) v 0 12 1/4" hole / Ccmentcd to Surface ■ • ■ t /- 500' of 4 - 6 SPF perforations • ■ 1 7" 2611 1.80 Vam Top Production Liner from 4.881' TVD / 8,553' MD TOP to 5.159' TVD /10,391' MI) TD 8 1/2" hole / Cemented 38IPage f I • . SURFACE USE PLAN FOR CLU STORAGE 4 Surface location: 1) Existing Roads Existing roads which will be used for access to CLU Storage 4 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 4 3) Location of existing wells Well CLU Storage 4 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 39IPage • • 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 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 / 145' / \ w w w / ■ N: z 10 w a te∎ a r--: CUA r TP o O N CLU !t%nt% 7 Doat Lar %ck C,, I E Larn loa Zeno MN G�. 0..„...h4 Plant CaHanmeel lMYY ' +I}! 1 I ; x . , .Pr ww�. I n CLU stx.ge 5 I NN%n ' ILO Cemantlnq pack hmN TnckMrP , 1 Dram Centatnm%nt I L 1 -.. ..... __ .... _. ___... ..... .. L � j, _._ _.,_. 426 I I � ! 40 1 Page r • • Figure #2 /20'/ / , 60' / DeWatering Plant 5 x 400bbI Frac Tanks o (co / 40' / Containment DeWatering Equipment Figure #3 Containment Section 12" x 12" Wood Sill Impermeable liner � � I 41jPage • • 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: C LU y4� 3 ,,�� l��rul. o -S4 Name and Title: 42 ( P a g e Alaska Department of Natural Resources Land Administration System Page 1 of 1 • 11i s'r: ti M<r�oe v Land Records /Status Plats Recorder's Search State Cabins Natural Resources I find Alaska DNR Case Summary File Type: ADL File Number: 230925 d Printable Case File Summary See Township, Range, Section and Acreage? New Search 4 Yes No __._....._...._.._._ LAS Menu 1 Case Abstract l Case Detail !Land Abstract File: ADL 230925 Map Search for Status Plat Updates As of 09/13/2011 Customer: 000051265 COOK INLET NATURAL GAS STORAGE ALASKA, LLC P.O. BOX 190288 ANCHORAGE AK 995190288 Case Type: 553 NEG LEASE NON - COMP DNR Unit: 200 LAND MANAGEMENT File Location: SCDOLD SCDO LAND SECTION Case Status: 21 EARLY ENTRY AUTHRZTN Status Date: 03/25/2011 Total Acres: 7.000 Date Initiated: 02/10/2010 Office of Primary Responsibility: LSC LAND - SOUTHCNTRL REG Last Transaction Date: 09/12/2011 Case Subtype: 5015 INDUSTRL /COMMERCIAL Last Transaction: ADJAGN ADJUDICATOR ASSIGNMENT Meridian: S Township: 005N Range: 011W Section: 09 Section Acres: 7 S src Legal Description Project is located in Sec 9 TOO5N RO11 W SM Further Described within Tract F of the Boat Ramp Subdivision, Kenai Recording District. End of Case Summary Last updated on 09/13/2011. Not sure who to contact? Have a question about DNR? Visit the Report technical problems with this page to the Site optimized for Netscape 7, IE 6 or above. This site also requires that all must be accepted. State of Alaska Natural Resources LAS Home Copyright Privacy System Status http://dnr.alaska.gov/projects/las/Case Summary. cfm ?FileType =ADL &F ileNumber =23 09... 9/13/2011 • • Saltmarsh, Arthur C (DOA) From: Saltmarsh, Arthur C (DOA) Sent: Tuesday, September 13, 2011 2:18 PM To: 'Richard Gentges' Subject: Subsurface lease number CLU S -4 Afternoon Rick, Would you please check and let me know what the subsurface lease (ADL) is for the subsurface portion of the S -3 and S 4 wells? I've got the surface and I realized that Section 8 is not on lease ADL230925. I'm doing the Permit right now. Thanks. Art Saltmarsh, CPG Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Ste 100 Anchorage, Alaska 99501 907 -793 -1230 "The only thing necessary for the triumph of evil is for good men to do nothing ". Edmund Burke • • FORM NO. DO &G 201003 (2010) STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Gas. -Se Lease ADL No_ 351627 THIS LEASE is entered into AUG 01 2011 , between the State of Alaska, "the state," and Cook Inlet Natural Gas Storage Alaska, LLC, "the lessee." In consideration of the payment made by the lessee to the state, and subject to the provisions of this lease, including any exhibits and addendums attached to this lease, and by reference incorporated in this lease, the state and the lessee agree as follows: 1. GRANT. (a) The state grants to the lessee: (1) the right for Storage of Gas in the Gas Storage Formation under the following tract of land, as depicted on Exhibit A: Township 5 North, Range 11 West, Seward Meridian, Alaska Section 04: Surveyed, those portions of Lot 10 and that portion of the Kenai River tide and submerged land, including all portions thereof surveyed as part of the Kenai Tidelands Survey, Alaska Tidelands Survey, or any other survey of tidelands property, but excluding Lot 2, U.S. Survey 4563, lying within SWASW%, W1SE %SW'/4, S'/4NW%SW14, SY2N %NW1/4SWY4, 69.60 acres; Section 05: Surveyed, that portion of the Kenai River tide and submerged lands, including all portions thereof surveyed as part of the Kenai Tidelands Survey, Alaska Tidelands Survey, or any other survey of tidelands property, lying within S'/N%NE %SE%4, S'4SE%4, SYNW'/4SE %, S'/NE1/4NW1/4SE'/4, E%SE%SW/, and SE1/4NE %.SW /., 134.75 acres; Section 08: Surveyed, that portion of the Kenai River tide and submerged lands, including all portions thereof surveyed as part of the Kenai Tidelands Survey, Alaska Tidelands Survey, or any other survey of tidelands property lying within the S%, NE'/4, SY2NWY4, NE'/NE%.NW %, S %NE%4NWY4, SEY4NW%4NW' /4, 176.67 acres; Section 09: Surveyed, that portion of the Kenai River tide and submerged lands, including all portions thereof surveyed as part of the Kenai Tidelands Survey, Alaska Tidelands Survey, or any other survey of tidelands property, lying within, W %NW "/4, W'/E %NW %, N'ANW%4SW%4, SW %NWY4SWY4, NWI SWASW% 98.88 acres; Section 17: Surveyed, that portion of the bed of the Kenai River, including all portions thereof surveyed as part of the Kenai Tidelands Survey, Alaska Tidelands Survey, or any other survey of tidelands property, lying within N%NW %, NW 1/4NE1/4, W1/2NE1/4NE%, N2NW1/4SW /4NW/4, NE%4SW N'/SE'/4NWY4, NYSWY4NE%4, NWY4SE%NEY4, 47.73 acres; containing approximately 527.63 acres, more or less within the storage area as depicted on Exhibit A. Formation Description Cannery Loop Sterling C Gas Pool is vertically defined as the underground formations comprising the C1 and C2 sand and correlative buffer geological formation directly adjacent thereto at the equivalent stratigraphic interval, bounded by the base of the B5 coal formation (C1 top) and the top of the Upper Beluga formation (Upper Beluga Top); further vertically defined in the "Pool Type Page 1of13 • • TRANSMITTAL LETTER CHECKLIST WELL NAME 2h' PTD# v?f »0?.0.? Development / Service Exploratory Stratigraphic Test Non - Conventional Well ' / FIELD: C? W Z'y Zooms I '9 POOL: .. -Cj 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(0, 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. Rev: 1/11/2008 'WELL PEIMIT CHECKLIST Field & Pool KENAI C.L.U., STERL C GAS STOR - 449800 Well Name: CANNERY LOOP UNITS -4 Program SER __ Well bore seg , yQ 1/24 /1 PTD#: 2111220 Company eopite M4NAILNz€ciers,(f ,age414ytu.Initial Class/Type SER / PEND GeoArea 820 Unit 10320 On /Off Shore On Annular Disposal Administration 17 Nonconven. gas conforms to AS31.05.030(j.1.A),(1.2.A -D) NA 1 Permit fee attached NA 2 Lease number appropriate Yes Lease has just been transferred and DNR has not yet entered it into their Database (9/15/11 -ACS). 3 Unique well name and number Yes 4 Well located in a defined pool Yes Kenai CLU Sterling 'C' 15 Well located proper distance from drilling unit boundary Yes 6 Well located proper distance from other wells Yes 7 Sufficient acreage available in drilling unit Yes 8 If deviated, is wellbore plat included Yes 9 Operator only affected party Yes 10 Operator has appropriate bond in force Yes Appr Date 11 Permit can be issued without conservation order Yes ACS 9/15/2011 12 Permit can be issued without administrative approval Yes 13 Can permit be approved before 15 -day wait Yes . . 14 Well located within area and strata authorized by Injection Order # (put IO# in comments) (For Yes ,15 All wells within 1/4 mile area of review identified (For service well only) Yes 16 Pre - produced injector: duration of pre production less than 3 months (For service well only) NA 18 Conductor string provided Yes 20" @p 115'. Engineering 19 Surface casing protects all known USDWs Yes 20 CMT vol adequate to circulate on conductor & surf csg Yes Adequate excess. 21 CMT vol adequate_to tie -in long string to surf csg Yes 22 CMT will over all known productive horizons Yes 23 Casing designs adequate for C, T, B & permafrost Yes Adequate safety factors. 24 Adequate tankage or reserve pit Yes Nabors Rig 105E. 25 If a re-drill, has a 10 -403 for abandonment been approved NA New well. 26 Adequate wellbore separation proposed Yes _ 27 If diverter required, does it meet regulations Yes Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Max MW 9.8 ppg. WGA 9/19/2011 29 BOPEs, do they rneet regulation Yes 30 BOPE press rating appropriate; test to (put psig in comments) Yes MASP 1764 psi. Test to 2500 psi. • 31 Choke manifold complies w /API RP -53 (May $4) Yes 32 Work will occur without operation shutdown Yes 33 Is presence of H2S gas probable No Not an H2S area. 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permitcan be issued w/o hydrogen sulfide measures Yes Geology 36 Data presented on potential overpressure zones NA Appr Date 37 Seismic analysis of shallow gas_zones NA ACS 9/13/2011 38 Seabed condition survey (if off - shore) NA 39 Contact name /phone for weekly progress reports [exploratory only] NA Geologic Engineering - •lic Date: Date fi Date Commissioner: Commissioner: • �. sio ner 9 -2 . / Iv 2 -i9_ j/ • • Well History File APPENDI Information of detailed nature that is not particularly germane to the Well Permitting Process • but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. RPr,FIVED NOV 0 R 2011 CLU Storage 4 irons. commis Kenai Borough, Alaska Anchorage September 28 to October 23, 2011 Cook Inlet Natural ;Gas STORAc 1. ff v 111 i 1 i Provided by: CANJ*IG ro Approved by An Berland Compiled by: Zach Beekman Doug Acker James G. Foradas Distribution Date: 10/31/11 TD Date: October 17, 2011 a(f -l�2 CINGSA CLU Storage 4 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 6 3 GEOLOGICAL DATA 7 3.1 Lithology Review 7 3.2 Sampling Program 19 4 DRILLING DATA 20 4.1 Daily Activity Summary 20 4.2 Surveys 23 5. Drilling Progress Chart 28 6. Daily Reports 29 Enclosures: 2 "/ 100' Formation Log (MD and TVD 2 "/ 100' LWD Combo Log (MD and TVD) 2 "/ 100' Drilling Dynamics Log (MD and TVD) Final Well Data on CD • • 2 CANRIG CINGSA CLU Storage 4 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type /Position Total Comments Downtime 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 RigWatch Master, DML, RigWatch 1 Computers – Mudloggers (4) Remote, WITS Feed (all HP Compaq) 0 QGM gas trap; Ditch gas 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 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 Zach Beekman 3 16 Steve Franzen 4 16 Steve Forrest 2 Doug Acker 1 25 Ralph Winkelman 10 5 Jim Foradas 4 21 *1 Years experience as Mudlogger *2 Days at wellsite between rig up and rig down of logging unit. 3 CANRIG CINGSA CLU Storage 4 2 GENERAL WELL DETAILS 2.1 Well Obiectives The objective of CLU Storage 4 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 the coal at the bas 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 averages 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. 4 CANRIG CINGSA CLU Storage 4 2.2 Well Resume Operator: CINGSA Well Name: CLU Storage 4 Field: Cannery Loop/ Sterling C County: Kenai Borough State: Alaska Company Representatives: John Nicholson, Steve Ratcliff Location: Surface Coordinates 670' FNL 1762 FEL SEC. 9 T5N R11 W Ground Elevation 33' AMSL Rotary Table Elevation 53.51' AMSL Classification: Gas Storage API #: 50- 133 - 20598 -00 -00 Permit #: 211122 Rig Name /Type: NAD 105AC/ Arctic/ Triple Spud Date September 28, 2011 Total Depth Date: October 17, 2011 Total Depth 10500' MD/ 5119.95'TVD Primary Targets Sterling C Sands Primary Target Depths 10391'MD/ 5159'TVD Total Depth Formation: 8728' MD/ 4914' TVD Completion Status: Run 7" Liner LWD -MWD Services. Baker Hughes Inteq Directional Drilling Baker Hughes Inteq Wireline Logging Services Baker Atlas Drilling Fluids Service MlSwaco CANRIG Logging Geologists: Zach Beekman, Doug Acker, Jim Foradas, Ralph Winkleman CANRIG Sample Catchers: Jim Foradas, Steve Franzen 5 CANRIG CINGSA CLU Storage 4 2.3 Hole Data Maximum Depth Mud Shoe Depth LOT Hole TD Dev. Casing Weight . Section MD SSTVD Formation (ppg) (mc) Diam. MD SSTVD (ft) (ft) (ft) (ft) Conductor 118' 64.54' Recent 0.00 20" 118' 64.54' NA 16" 2482' 2097.65' Sterling 9.3 59.09 13 3/8" 2467' 2089.5' 16.0 12 -1/4" 8619' 4924.84' Sterling 9.2 72.94 9 5/8" 8608' 4920.86' 12.0 Standard 8 - 1/2" 10500' 5112.95' Sterling 9.2 87.02 7" 10498' 5010.66 Completio n 6 CANRKi CINGSA CLU Storage 4 3 GEOLOGICAL DATA 3.1 Lithologv Review Sand (2482 -2590) = sample consists of a slurry of loose sand predominantly translucent to transparent to very Tight gray to slightly milky white; slight salt and pepper appearance; lower fine to upper fine grained; moderate to good sorting; angular; abundant thin glass fragments; common light green to light yellowish green lithics; abundant orange lithics throughout; also common medium gray to dark gray fragments; abundant biotite observed; thin lenses of tuffaceous claystone interbedded with in larger sand. Sand (2590 -2680) = loose sand, light gray to medium light gray; grains are translucent to transparent to light gray; lower fine to upper fine to trace amounts of upper very fine grained and upper medium grained; good to moderate sorting; angular to trace sub - angular grains; low to moderate sphericity to slightly sub - discoidal; abundant glass shards; abundant light green to pale bluish green lithics with common orange lithics; also common medium to dark gray Iithic fragments; trace amounts of tuffaceous claystone cuttings are very pale yellowish orange to yellowish gray to very light gray. Sand /Conglomeratic Sand (2680- 2740) = light gray to medium light gray overall; upper very fine to lower coarse with most abundant being upper fine to lower medium; poor sorting; angular with low sphericity; abundant glass shards are very angular; abundant multicolored lithics throughout sample interval; trace tuffaceous claystones; yellowish gray to very Tight gray; firm; crumbly to brittle in part; slightly wedgelike cuttings habit; dull earthy luster with a silty to gritty texture. Sand /Conglomeratic Sand (2740 -2800) = medium light gray to light gray overall; upper very fine to lower coarse with most abundant being medium grained; poor sorting; angular with low sphericity; abundant angular glass shards; abundant orange lithic fragments; common light green to pale yellowish green lithics; scattered medium gray to dark gray fragments; abundant biotite observed within sample interval. Sand /Conglomeratic Sand (2800 -2860) = slurry of loose sand and conglomeratic sand; predominantly light gray to medium light gray overall; abundant translucent to clear colorless to milky white; very fine to coarse, predominantly medium grained; angular to sub - angular; low sphericity; abundant glass shards, sub - angular; abundant orange to reddish orange lithics; thin interbedded light gray tuffaceous claystone. Sand /Conglomeratic Sand (2860 -2950) = slurry of predominantly loose sand and conglomeratic sand consisting of light gray to medium light gray overall; abundant translucent to transparent to milky white individual grains; very fine to lower coarse, lower to upper medium predominates; poorly sorted; angular to slightly sub - angular; loose disaggregated sands; light green to grayish green lithics; abundant multicolored lithics, orange, pale rose, light olive brown, dark gray to black; trace cuttings of light gray to light brownish gray tuffaceous claystone; dull earthy luster with a silty to gritty texture. Sand /Sandstone /Conglomeratic Sand (2950 -3010) = samples are medium light to Tight gray overall; predominantly transparent to translucent to milky white individual grains; abundant dark brown to black lithics gives sample slight salt and pepper appearance; very fine to lower coarse, predominantly upper fine to lower medium; poorly sorted; angular to sub - angular; trace amounts of light gray, very fine grained sandstone; very brittle. Sand (3010- 3170) = loose sand, medium light gray to light gray; grains are translucent to transparent to light gray; upper fine to upper medium with trace amounts of lower coarse grained; poor to moderate sorting; angular to sub - angular; abundant volcanic glass; abundant multicolored lithics, orange, pale rose, rust; abundant dark gray to black lithics; slight salt and pepper appearance; trace light gray tuffaceous claystone. Tuffaceous Claystone /Siltstone (3070 -3130) = very Tight gray to light gray with yellowish gray to Tight 7 CANMG CINGSA CLU Storage 4 brownish gray hues; firm; pulverulent; some cuttings slightly crumbly; amorphous cuttings habit; dull earthy • luster; clayey to silty texture to slightly gritty in the siltier /sandy cuttings; no structure visible; thin reddish brown to dark brown micro laminae observed. Sand (3130 - 3180) = sample consists of a slurry of loose sand predominantly transparent to translucent to slightly smokey quartz and milky white; upper very fine to upper medium grained with trace lower coarse; poor to moderate sorting; angular to sub - angular; volcanic glass sub - angular to sub - rounded; abundant multicolored lithics throughout. Sand (3180 - 3240) = sample contains mostly loose sand grains; transparent to smokey quartz with some white to milky white; fine to lower medium grained with small amounts of very fine; well to moderate sorting; sub - angular to sub - rounded; trace amounts of volcanic glass that is sub - angular to sub - rounded; reddish brown to dark brown micro laminae throughout the sample. Sand (3240 - 3300) = medium to light gray with some white to milky white quartz grains; sample has an over all salt and pepper appearance; trace amounts of tuffaceous siltstone light to medium gray >10 %; grain size seems to be decreasing very fine to medium size grains; poor to moderate sorting; angular to sub - angular multicolored lithic spread throughout the sample. Sand (3300 - 3400) = medium light to light gray with a moderate salt and pepper overall appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium greenish gray to light bluish green, medium to dark gray, orange, pale rose and trace rust; very fine upper to coarse lower, dominantly medium upper to lower; angular to subangular; poor to fair sorting; dominantly unconsolidated; with trace light yellowish gray sandy siltstone/ silty sandstone; firm; non calcareous; scattered light gray tuffaceous claystone; very firm to fragile; irregular shaped cuttings; silty to clay texture; dull luster; moderately soluble and expansive; trace dark brown to black micro thin carbonaceous laminations and inclusions; non calcareous. Sand (3400 - 3460) = light gray to medium light gray appearance; transparent to translucent quartz and volcanic glass, Tight green, light blue, orange, and trace amount of rust color, very fine to upper medium gain size; angular to sub - angular; very more poor sorting; very light gray to light gray tuffaceous claystone; firm to crumbly with an earthy fracture; dull to earth luster; little to no reaction with HCI. Sand (3460 - 3540) = very light gray to medium gray with a slight salt and pepper appearance; transparent to clear quartz grains and volcanic glass; multi color individual grains; light blue green, orange, brown with white and milky white very fine to medium sized grains samples are trending towards very fine; very poor to fair sorting; angular to sub - angular; the amount of tuffaceous clay /siltstone has decreased to less then 5 %; very light gray; firm to brittle tenacity; dull luster with micro thin black lamination and some inclusions; non calcareous. Sand (3540 - 3620) = unconsolidated; overall medium to medium light gray; slight salt and pepper; lower fine to upper very fine grain; subangular to angular, rarely subrounded; subdiscoidal occasional upper fine to medium grains, angular, high impact fractured surfaces; fair sorting; arenaceous tuffaceous claystone that is matrix supported with firm to crumbly tenacity; dull to earth luster; multicolored lithics, blue, green, orange, light pink, rust and some biotite; sample continues to have trace amount of carbonates with very small reaction from HCI. Sand (3620 - 3710) = medium gray to medium light gray with a slight salt and pepper appearance; individual grain; clear to translucent, white, milky white, orange, rusty, light pink, blue green lithics; biotite common through out; tuffaceous siltstone less than 10 %; firm to brittle tenacity with dull luster; some tuffaceous siltstone show very thin black lamination; clear quartz and volcanic glass is also common through out; non calcareous. Sand (3710 - 3790) = gray to medium gray with a salt and pepper look; grain color varies from clear, bluish green, light pink to gray, fine to very fine to sometimes medium grained; poor to very poor with occasionally -an ular; biotite is common with some reddish/orange sorting; very angular to sub a clasts; tuffaceous g g siltstone has stayed steady at around 5 -10 %; firm to brittle with dull luster; trace amounts of black contorted laminations; no reaction with HCI; clear to translucent quartz and volcanic glass common through out the • 8 CANRKG CINGSA CLU Storage 4 sample. Sand (3790 -3900) = unconsolidated; overall medium to medium light gray; slight salt and pepper; lower fine to upper very fine grain; subangular to angular, rarely subrounded; subdiscoidal occasional upper fine to medium grains, angular, high impact fractured surfaces; fair sorting; note trace sandstone/ very arenaceous tuffaceous siltstone; generally matrix supported but often grain supported with abundant clay fill; none to rare poor visible porosity; milky white, white, gray to light gray, opaque, occasional translucent rare transparent quartz; note decreased gray lithics, increased pale green to yellowish green, yellowish brown to amber grains; biotite common; continued trace carbonaceous material as sublithic micro pyritic coal, earthy material entrained in claystone. Sand (3900 -4010) = light medium gray medium dark gray to medium gray overall; slightly salt and pepper; predominately lower fine grain, upper fine common, some times lower medium to medium grain; subangular to subrounded; discoidal to subdiscoidal; fair sorting; note trace very fine sandstone; often quartz grain supported with abundant dark gray lithic fragments and biotite; light gray, opaque to occasionally transparent, rarely translucent quartz; medium to dark gray, pale green to yellowish green, amber lithics about equal; abundant biotite; reddish orange pinkish orange clasts common; continued trace tuffaceous siltstone; firm to crumbly with dull luster; thin dark gray lamination with some inclusions; trace amounts of carbonaceous material minimal reaction with HCI. Tuffaceous Claystone /Siltstone (3400 -4080) = very light gray to light gray occasionally medium light gray; somewhat firm to crumbly tenacity; dull earth luster. multicolored assortment of lithic material pale green to yellowish green, orange and pale pinkish; volcanics grass shards and transparent quartz still common; tuffaceous material has increased over the interval; still little reaction with HCI; sample has a slight salt and pepper look and the amount of gray has increased over the interval. Sand (4080 -4150) = unconsolidated; overall medium gray to medium dark gray appearance; slightly salt and pepper; very fine grain; subrounded to subangular; subprismoidal and sub - discoidal moderate to locally well sorted; milky white, very light, very light gray, gray, opaque, rarely translucent quartz; remaining dark gray, pale green to yellowish green, amber grains equally represented; abundant reddish orange clasts; biotite common; trace tuffaceous claystone /siltstone, firm to crumbly with dull earthy luster; non calcareous. Sand (4150 - 4230) = mostly unconsolidated very light gray to light gray to somewhat medium gray; salt and pepper look as stay about the same of previous samples; fine to medium fine with some very fine grains; fair to poor sorting; angular to sub - rounded; mostly milky white, light gray, translucent quartz; multi colors of individual grain, orange pale pink, bluish green to almost aqua marine; trace amounts of tuffaceous claystone /siltstone becoming mostly crumbly with dull earth luster; biotite has become less visible; non calcareous. Sand /Sandstone (4230-4300) = light gray to medium dark gray, salt and pepper look; fine to medium grains with multi color loose grains, orange, rust, light pink, and white; well to fair sorting with some poor; sandstone is brittle with the same multicolored grains; trace amounts of light gray to ashy tuffaceous claystone and siltstone; most grains are sub - angular to angular with occasionally rounded clear quartz and volcanic glass; trace amount of wedgelike cuttings habit; very little reaction from HCI. Sand /Sandstone (4300 -4390) = sample consists of a slurry of loose sand and very fine grained sandstone; light gray to medium light gray to medium gray overall; upper very fine to upper medium grained; moderate to poorly sorted; sub - angular to angular; low to moderate sphericity; abundant orange, light green to pale yellowish green, and dark gray to black lithics; light gray sandstone; firm to slightly fragile; grain supported; very fine grained; angular; thin beds of silty claystone interbedded within larger sand /sandstone beds; very light gray to light yellowish gray; trace amounts of reddish brown to dark brown carbonaceous material. Sand /Sandstone (4390 -4480) = sample consists of a slurry of loose sand and very fine grained sandstone; medium light to light gray to medium gray overall; transparent to translucent to light gray predominates; upper very fine to upper medium, trace lower coarse; moderately sorted; low to moderate sphericity; abundant orange, light green to pale yellowish green volcanics; common dark gray to black lithics; light gray sandstone; 9 CANRIG CINGSA CLU Storage 4 firm; brittle; grain supported; very fine grained; angular; thinner beds of silty claystones interbedded with larger sand /sandstone beds; very light gray to light yellowish gray; thin dark brown micro laminae observed. no reaction to HCI. Sand /Sandstone (4490 - 4580) = sample consists of a slurry of loose sand and very fine grained sandstone; medium light to light gray to medium gray overall; transparent to translucent to light gray predominates; upper very fine to upper medium, trace lower coarse; moderately sorted; low to moderate sphericity; abundant orange, light green to pale yellowish green volcanics; common dark gray to black lithics; light gray sandstone; firm; brittle; grain supported; very fine grained; angular; thinner beds of silty claystones interbedded with larger sand /sandstone beds; very light gray to light yellowish gray; thin dark brown micro laminae observed; no reaction to HCI. Sand/Tuffaceous Claystone /Coal (4580 - 4630) = light gray to medium light gray overall; upper very fine to upper medium grained; sub - angular to angular; claystones are very light gray to Tight yellowish gray; small amount of coal observed; very dark brown to black; firm to hard; brittle; planar fracture; earthy luster; silty to gritty texture; poorly developed. Coal (4630 - 4710) = grayish black to dark gray, brownish black to blackish red in part; firm to very firm; brittle to platy to subfissile in part; dull to earthy; interbeds with and in clay; also note tuffaceous claystone and siltstone has increased over the interval; sandstone has decreased as well as multi color volcanics; no reaction with HCI. Tuffaceous Siltstone /Claystone (4710 - 4760) = very light gray to light gray with occasionally medium gray; brittle to crumbly with earthy fracture; wedgelike cuttings habit; dull to earthy luster; overall showing little structure; coal with visible organic material; claystone ashy and composed of various lithic material. Tuffaceous Siltstone /Claystone (4760 - 4740) = very light gray, medium light to brownish gray; brittle to amorphous with dull earthly luster; individual grains are very fine to fine with trace amount of lower medium grained; fair to well sorting; angular to sub - angular with occasionally rounded clear quartz; undeveloped coal with visible very small out gassing bubbles; some interbedded with tuff; an increase in coal over the interval; brownish light gray claystone with interbedded black organic material; sample shows very little reaction with HCI. Tuffaceous Siltstone /Claystone (4740 - 4930) = light gray to medium dark gray with some brownish gray; brittle to crumbly tenacity; amorphous structure; some interbedded with dark brown; rounded to sub - angular with occasionally angular quartz grains; fair to well sorting with moderate sphericity; note, the amount of coal is reduced on the interval; also abundant organic component; dull to slightly sparkly in part with abundant clastic component; little to no reaction with HCI. Sand /Coal (4930 - 5020) = unconsolidated very light gray to light gray to somewhat medium gray; salt and pepper look as stay about the same of previous samples; fine to medium fine with some very fine grains; fair to poor sorting; angular to sub - rounded; mostly milky white, light gray, translucent quartz; multi colors of individual grain, orange pale pink, bluish green; vitreous coal, dark gray, brownish black to blackish red in part; firm to very firm; brittle to platy to subfissile in part; dull to earthy; interbeds with organics; also note tuffaceous claystone and siltstone has decreased over the interval; non calcareous. Sand /Tuffaceous Siltstone /Claystone (5020 - 5080) = light gray to medium gray with yellowish brown in places; crumbly to brittle with amorphous structure and no visible fracture; tabular to platy cutting habit; inclusions of multicolored lithics and organic matter; less then 5% coal; tough to firm with a dull to almost vitreous luster; some lamination is visible; over all sample shows little reaction with HCI. Sandstone (5080 - 5060) = gray to light medium gray; firm to brittle to somewhat crumbly; planar to platy to almost amorphous; tabular to wedgelike cuttings habit; dull earthy luster; interbedded with dark black underdeveloped coal or organic matter; non - calcareous; individual gains dominated by transparent to translucent quartz and trace amounts of shards of volcanic glass; lower fine to lower medium; angular to sub - angular; moderately well sorted; some coal is still present in the samples; dark gray to dark brownish gray; firm 10 CANRIG to brittle with a dull earthy luster; non calcareous. CINGSA CLU Storage 4 Tuffaceous Clav /Siltstone (5160 -5229) = very light gray to very light medium brownish gray; firm to crumbly and some brittle; irregular to wedgelike cuttings habit; silty to clayey texture with a dull earth luster; dark brown to black micro carbonaceous lamination and inclusions; poorly developed coal beds; dark brown to dark back; firm to brittle with a silty to smooth texture; little to no reaction from HCI. Tuffaceous Claystone /Siltstone (5230 -5300) = very light gray to light gray occasionally medium light gray; somewhat firm to crumbly tenacity; dull earth luster. multicolored assortment of lithic material pale green to yellowish green, orange and pale pinkish; volcanics glass shards and transparent quartz still common; tuffaceous material has increased over the interval; still little reaction with HCI; sample has a slight salt and pepper look and the amount of light ashy gray to brownish gray has increased over the interval; non calcareous. Tuffaceous Claystone /Siltstone (5300 -5390) = very light gray to almost white in parts; over all sample has a salt and pepper look; tuffaceous material is ashy white to light brownish gray with firm to crumbly tenacity; tabular cuttings with smooth silty to sometime gritty texture; individual grains range from transparent to light gray to orange and sometimes light bluish green; grains tend to be subangular to sub rounded with the clear to smokey quartz being rounded to subrounded; over all poor sphericity; trace amount of coal has been consistent of the interval; coal shows little to no degassing and little reaction the HCI. Coal /Carbonaceous Shale (5390 -5440) = black with grayish black and brownish black secondary hues; firm to hard and occasionally brittle and crumbly platy to splintery; planar fracture dominates; smooth to clayey texture; earthy to slightly sparkly luster with silty to gritty texture; poorly developed; small trace out gassing bubbles observed non calcareous. Sand /Conglomeratic Sandstone (5550 -5520) = medium light to light gray overall with a moderate salt and pepper appearance, individual grains are mostly translucent quartz and some volcanics, light bluish gray to • light bluish green; as well as multicolored lithics, orange, light pink, light blue, rust, and occasionally light gray; fine to upper fine to upper medium with trace coarse; angular to sub - angular grains that are fair to poorly sorted and mostly unconsolidated; no reaction with HCI. Sand (5520 -5580) = loose sand, medium Tight gray to light gray; grains have a salt and pepper appearance with mostly translucent to transparent to gray quartz; upper fine to upper medium with trace amounts of lower coarse grained; poor to moderate sorting; angular to sub - angular; abundant volcanic glass; abundant multicolored lithics, orange, pale rose, rust; abundant dark gray to black lithics; trace light gray tuffaceous clay /siltstone; non calcareous. Sand (5580 -5640) = unconsolidated light gray to very light gray with a salt and pepper appearance; clear to translucent quartz is common as well as multicolored lithics, pale yellow, orange, light blue green, light gray, milky white, and Tight pink; upper fine to lower medium; well to semi poor sorting; sub rounded to subangular; trace amounts of dull earthy grain supported tuffaceous claystone and siltstone. Sand (5640 -5720) = light gray to medium light gray that has a salt and pepper appearance that is unconsolidated; individual grain multicolor lithics are common, orange, bluish green, pale pink rust; clear to translucent quartz and volcanic glass is also common; very fine to upper fine grained with well to fair sorting; rounded to subangular with some angular; medium to low porosity; trace amounts of tuffaceous siltstone that is crumbly with a dull earthy luster with organic laminae and some multicolored lithic inclusion; sample showed no reaction when HCI is used. Sand (5720- 5800) = unconsolidated very light gray to medium light gray with a salt and pepper appearance similar to the previous samples; clear to transparent quartz and volcanic glass; multicolored lithic, light bluish green, orange, light gray, and some pale pinkish; fine to lower medium occasionally very fine grained; subangular to angular with some rounded; well to fair sorting; tuffaceous siltstone; thinly interbedded lenses; crumbly; amorphous cuttings; dull earthy luster; organic laminae and some multicolored lithic inclusions; no reaction with HCI. 11 CANRIG CINGSA CLU Storage 4 • Sand (5800 -5860) = light to medium light gray; loose sand predominantly translucent to transparent to light gray to milky white quartz and volcanic glass; sub - angular to angular to trace subrounded; well to moderately sorted; upper fine to upper medium grained; abundant multicolored lithics; very light gray tuffaceous siltstone; fragile to crumbly; grades between sandy siltstone and silty sandstone. Tuffaceous Claystone/Tuffaceous Siltstone (5860 -5920) = very light gray to light gray with light yellowish gray and light brownish gray hues; firm to hard; crumbly to fragile; irregular to slightly wedgelike cuttings habit; dull earthy luster; silty to clayey texture to a slightly gritty texture in the sandier cuttings; thin reddish brown to dark brown micro laminae visible; no reaction with HCI. Sand (5920- 5980) = light to medium light gray overall; loose sand; transparent to translucent to milky white to light gray predominates; abundant volcanic glass; sub - angular to sub - rounded with trace angular; well to moderately well sorted; upper very fine to lower medium grained; common light green to Tight yellowish green and orange lithic fragments; no reaction to HCI; trace safecarb contamination observed. Tuffaceous Clav/Tuffaceous Silt/Coal (5980 -6040) = very light gray to light gray with light yellowish gray and light brownish gray hues; firm to hard; crumbly to fragile; dull earthy luster; silty clayey texture; coal is black with brownish black secondary hues; very firm to hard; platy to splintery fracture; earthy to slightly sparkly luster; smooth to silty texture; trace out gassing bubbles visible. Tuffaceous Claystone/Tuffaceous Siltstone (6040 -6100) = very light gray to light gray with light brownish gray secondary hues; firm to hard; fragile to crumbly; irregular to slightly tabular cuttings habit; dull earthy luster; silty to clayey texture; hydrophilic; thin reddish brown to dark brown micro laminae visible; trace carbonaceous shale /coal interbedded. Sand (6100 -6160) = light to medium light gray overall; loose sand; transparent to translucent to milky white to light gray predominates; abundant volcanic glass; sub - angular to sub - rounded; well to moderately well sorted; • upper very fine to lower medium grained; common light green to light yellowish green and orange lithic fragments; no reaction to HCI except for trace safecarb contamination. Tuffaceous Clav/Tuffaceous Silt/Coal (6160 -6250) = very light gray to light gray with light yellowish gray and light brownish gray hues; firm to hard; crumbly to fragile; dull earthy luster; silty clayey texture; common carbonaceous shale /coal stringers; black with brownish black to dark reddish brown secondary hues; very firm to hard; splintery fracture to slightly platy; flaky; predominantly earthy luster with slightly sparkly in part; smooth to silty texture; commonly grading to a carbonaceous shale /material; poorly developed; very trace out gassing bubbles observed; no reaction with HCI. Sand (6190 -6300) = light to medium gray with some medium light gray with salt and pepper appearance; individual grains clear to translucent to white to light gray; abundant clear volcanic glass and sub rounded quartz; fair to moderate sorting; fine to medium grained; multicolored lithics are also present, orange light green, pale pink, light yellowish green; non calcareous. Sand / Tuffaceous Clav/Tuffaceous Silt (6300 -6380) = light to light medium gray with some medium gray; varying hues of individual grain, bluish green, light pink, milky white, light gray, and orange lithics are common; crumbly to brittle; dull to earthy luster silty to clayey to sometime gritty texture; shale and coal stringers are present; brownish black to dark reddish brown; firm to hard with platy to planar fracture; rounded transparent to clear quartz and translucent volcanics are common through out; shale /coal shows signs of a small amount of out gassing; little to no reaction from HCI. Sand/Tuffaceous Claystone /Coal (6380 -6490) = light to medium light gray with some medium gray; brittle to crumbly tuffaceous cuttings with irregular to planar fracture; dull to earthy luster to sparkly in part; occasionally interbedded with poorly developed carbonaceous shale; unconsolidated grains consists of greenish blue, orange, pale pink lithics with clear to translucent quartz grains; fine to lower medium to very fine grained; far to well sorting; sub - angular to sub - rounded with rounding in some clear quartz; poorly developed coal with some trace amounts of out gassing; tough to firm to sometime brittle; dark brown gray to dark reddish brown, planar • 12 CANRIG CINGSA CLU Storage 4 to irregular fracture; massive to platy cuttings habit; dull to sometimes resinous luster; silty to gritty texture; non calcareous. Coal /Carbonaceous Shale (6490 -6570) = brownish gray to reddish brown with light gray secondary hues; firm to brittle; irregular to blocky fracture with tabular to wedgelike cutting habit; sub - metallic to dull and earthy luster; interbedded with underdeveloped shale; some visible out gassing; tuffaceous claystone /siltstone is >20 %; firm to crumbly with dull earthy luster; no reaction from HCI. Tuffaceous Claystone/Tuffaceous Siltstone (6570 -6630) = light gray to light brownish gray predominantly medium light gray; brittle to crumble to some times crunchy in part; irregular to planar fracture with wedgelike cuttings habit occasionally platy; dull to earthy luster; clayey to silty texture with some smooth; note the amount of coal has greatly reduced on the interval; no out gassing and no reaction from HCI. Conglomeratic Sand/Tuffaceous Claystone (6630 -6690) = light gray to medium light gray; firm to brittle; occasionally firm to tough; note claystone has increased over the interval; individual gains have also increased in size to medium fine grained; bluish green, gray, milky while and orange in part; small amount of under developed carbonaceous shale less then 10 %; no out gassing detected; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (6690 -6760) = light gray to medium gray; firm to crumbly with irregular to planar fracture; platy to wedgelike pdc cuttings habit; dull earthy luster with clayey to silty with somewhat gritty texture; interbedded with underdeveloped shale and trace lithic inclusions; clay content as increased over the interval; nut plug mud additive is present; little to no out grassing; no reaction from HCI. Tuffaceous Claystone/Tuffaceous Siltstone (6760 -6820) = very light to light gray with light brownish gray hues; firm to crumbly; irregular to slightly planar fracture; platy to wedgelike cuttings habit; dull earthy luster; clayey to silty texture to slightly gritty in sandier siltstones; thin lenses of very fine to fine sand /sandstones interbedded with the larger claystone /siltstone beds; no reaction with HCI. Coal /Carbonaceous Shale (6820 -6880) = black to brownish black with dark reddish brown secondary hues; firm to brittle; irregular to blocky fracture; tabular to somewhat flaky cuttings habit; earthy to dull to sparkly luster; interbedded with underdeveloped shale; trace visible out gassing; tuffaceous claystone /siltstone is firm to crumbly with dull earthy luster; no reaction with HCI. Sand/Tuffaceous Clay/Tuffaceous Silt (6880 -6970) = light to medium light gray with some medium gray; upper fine to upper medium with trace lower coarse grained; moderate to moderately well sorted; sub - angular to angular; common sub - rounded to rounded volcanics; individual grains are translucent, transparent, milky white, and light gray; common orange and light green lithics; tuffaceous claystone /siltstone is very light gray with light brownish gray hues; firm to crumbly; brittle; dull earthy luster; clayey to silty texture to occasional gritty texture; no reaction with HCI. Sand (6970 -7030) = medium Tight to light gray to slight medium gray overall; upper fine to upper medium grained; moderately well to moderate sorting; sub - angular to angular to sub - rounded in part; common sub - rounded to rounded volcanic glass; grains predominantly translucent, transparent, milky white, and light gray; common Tight green and light pink lithics observed; no reaction with HCI visible except trace safecarb mud additive. Coal (7030- 7090) = black to brownish black with dark grayish black and dark reddish brown secondary hues; firm to hard; irregular to blocky fracture; platy to somewhat flaky cuttings habit; brittle in part; dull earthy to slightly resinous luster; very slight to trace out gassing observed; silty to smooth texture; grading to a carbonaceous shale is common. Sand (7090 -7150) = light to medium gray to slight medium gray overall; upper very fine to lower coarse, predominantly upper very fine to lower medium; moderately well to moderate sorting within the very fine to medium grained; sub - angular to sub - rounded to angular; common sub - rounded to rounded volcanic glass; grains predominantly transparent, translucent, milky white, and light gray; common light green, light pink, and orange lithics observed. 13 CANRIG CINGSA CLU Storage 4 Sand (7150 -7210) = medium light to Tight gray to medium gray overall; upper fine to upper medium; moderately well to moderately sorted; sub - angular to angular to trace sub - rounded; common volcanic glass fragments; sand predominantly clear colorless, translucent milky white, and light gray; common multicolored lithics, light green, orange, light pink, rust, and light rose; safecarb contamination observed. Sand (7210 -7270) = light to medium gray to slight medium gray overall; upper very fine to lower coarse, predominantly upper very fine to lower medium; moderately well to moderate sorting within the very fine to medium grained; sub - angular to sub - rounded to angular; common sub - rounded to rounded volcanic glass; grains predominantly transparent, translucent, milky white, and light gray; common light green, light pink, and orange lithics observed. Sand /Tuffaceous Clay/Tuffaceous Silt (7270 -7360) = light to medium light gray with some medium gray; upper very fine to upper medium grained; moderately well to well sorted; sub - angular to angular with trace sub - rounded; common colorless volcanics; abundant multicolored grains transparent, translucent, milky white, and light gray; common orange, light green, and light pink lithics; tuffaceous claystone /siltstone is very light gray with light brownish gray hues; firm to crumbly; brittle; dull earthy luster; clayey to silty texture; tuffaceous siltstone grades from sandy siltstone to silty sandstone; safecarb contamination visible. Sand /Conglomeratic Sand (7360 -7450) = slurry of predominantly loose sand and conglomeratic sand consisting of light gray to medium light gray overall; abundant translucent to transparent to milky white individual grains; very fine to lower coarse, lower to upper medium predominates; poorly to moderately sorted; angular to slightly sub - angular; light green to grayish green lithics; abundant multicolored lithics, orange, pale rose, light olive brown, dark gray to black; trace cuttings of light gray to light brownish gray tuffaceous siltstone; dull earthy luster with a silty to gritty texture. Sand /Conglomeratic Sand (7450 -7510) = loose sand and conglomeratic sand consisting of light gray to medium light gray overall; slight salt and pepper appearance; transparent, translucent, to milky white and light gray; lower fine to lower coarse; moderately to poor sorting; angular to sub - angular; abundant multicolored lithics, orange, light green, light yellowish green, pale rose, dark gray, and black; safecarb contamination visible. Sand /Conglomeratic Sand (7510 -7570) = light to medium light gray to medium gray overall; faint salt and pepper appearance; transparent, translucent, to milky white and light gray; lower fine to lower coarse; moderately to poor sorting; angular to sub - angular; abundant multicolored lithics, orange, light green, light yellowish green, pale rose, dark gray, and black; safecarb contamination visible. Sand /Conglomeratic Sand (7570 -7630) = light to medium light gray to medium gray overall; faint salt and pepper appearance; translucent, transparent, to milky white and light gray; upper very fine to lower coarse; poor to moderately sorted; angular to sub - angular; abundant multicolored lithics, orange, light green, light grayish green, pale rose, light pink, dark gray, and black; safecarb contamination observed. Sand /Conglomeratic Sand (7630 -7690) = light to medium light gray to medium gray overall; faint salt and pepper appearance; transparent, translucent, to milky white and light gray; upper very fine to lower coarse; poor to moderate sorting; sub - angular to angular; abundant multicolored lithics, orange, light green, light pink, pale rose, dark gray, and brownish black; safecarb contamination visible. Sand /Conglomeratic Sand (7690 -7790) = light gray to medium light gray overall with a salt and pepper look; clear to translucent, milky white sub - rounded to rounded individual quartz grains; fine to upper medium to occasionally lower coarse; poor to fair sorting; abundant multicolored lithics, light bluish green, orange, light pink, dark gray, brownish black, and pale rose; trace amounts of tuffaceous claystone; firm to crumbly; dull to earthy luster with smooth clayey texture; trace amount a coal possibly from up hole; very little reaction from HCI mostly likely from mud additive. Sand /Conglomeratic Sand (7790 -7880) = medium light gray with individual grains dominantly clear to • 14 CANRIG , CINGSA CLU Storage 4 translucent quartz and volcanic glass, with abundant multicolored lithics of light to medium gray, light to • medium greenish gray to bluish green, trace rust, orange and pale rose; very fine lower to very coarse upper, dominantly medium upper to lower; angular to trace subrounded, dominantly subangular poorly sorted overall with fair to well sorting in fine to medium range; trace very fine grain supported sandstone light gray to light brownish gray; friable to firm; well sorted; non calcareous; trace sandstone with white to ashy white supporting matrix; non calcareous. Sand /Conglomeratic Sand (7880 -7960) = light gray to medium light gray with a salt and pepper appearance; abundant amount of clear to translucent quartz that is rounded to sub angular; fine to upper medium grained with poor to fair sorting; multi color lithic are very prevalent of the interval; light yellowish green, light blue, pale pink, orange and some trace amounts of rust colored; sub - angular to sub - rounded with fair to well sorting; trace amount of claystone that is brittle to crumbly in part with trace amount of organic laminae; no reaction from HCI. Sand /Conglomeratic Sand (7960 -8030) = medium light gray to very light gray and a slight salt and pepper appearance; abundant multicolored lithics, bluish green, orange, yellowish green, pink, and light gray; transparent to clear quartz with some being milky white; clear volcanic glass is also present; trace amounts of tuffaceous claystone; firm to crumbly in part with dull earthy luster; wedgelike to platy cuttings with very thin organic stringers; non calcareous. Sand /Conglomeratic Sand (8030- 8100) = light gray to medium light gray with a moderate to strong salt and pepper appearance; abundant translucent to clear quartz from fine gained to upper medium grained; fair to well sorting to poor in part; rounded to subrounded with trace amount of sub angular to angular; multicolored lithics of greenish blue, orange, pale pink, rust, and light gray; trace amount of tuffaceous claystone that is brittle to firm with a dull to earthy luster; no reaction from HCI. Sand /Conglomeratic Sand (8100 -8200) = slurry consists of light gray to medium light gray loose sand /conglomeratic sand with a salt and pepper appearance; abundant clear colorless, translucent, milky • white, and light gray quartz; upper fine to lower coarse grained; poor to moderate sorting; common multicolored lithics, reddish orange, light greenish yellow, light pink, rust, and dark gray; sub - angular to angular to sub - rounded in part; trace light gray very fine grained sandstone cuttings; non calcareous; thin lenses of very light gray to light brownish gray tuffaceous siltstone; firm; brittle to crumbly; common thin micro laminae observed; no reaction from HCI; trace safecarb contamination. Sand /Conglomeratic Sand (8200 -8260) = light gray to medium light gray with a slight salt and pepper appearance; abundant translucent to clear colorless quartz; upper fine to upper medium grained; moderately to poorly sorted; sub - angular to sub - rounded to angular; multicolored lithics of orange, rust, light grayish green, light pink, and light gray; trace tuffaceous claystone /siltstone; firm; brittle; dull earthy luster; thin micro laminae observed. Sand /Conglomeratic Sand (8260 -8320) = medium light to light gray with a slight salt and pepper appearance; abundant translucent, transparent, smokey gray quartz; upper fine to lower coarse grained; moderately sorted; sub - angular to angular to sub - angular; multicolored lithics of orange, rust, light yellowish green, pale rose, and dark gray; no reaction to HCI. Sand /Conglomeratic Sand /Sandstone (8320 -8380) = medium light gray to light gray to medium gray overall; predominantly transparent to translucent, milky white, light gray individual grains; lower fine to lower medium grained with occasional lower coarse; poorly sorted; angular to sub - angular; scattered light gray, very fine grained sandstone cuttings; firm to moderately hard; brittle in part; ashy matrix; non calcareous. Sand /Conglomeratic Sand (8380 -8440) = medium light gray to light gray with a slight salt and pepper appearance; abundant translucent to clear colorless quartz; lower fine to upper medium grained; moderately to moderately well sorted; sub - angular to sub - rounded with trace angular; abundant multicolored lithics of orange, rust, light yellowish green, and dark gray; common light gray very fine sandstone cuttings; trace coal /carbonaceous material; non calcareous. • 15 CANRIG CINGSA CLU Storage 4 Sand (8440 -8530) = sample consists of a slurry of light gray to medium light gray loose sand; abundant • transparent, translucent, milky white and light gray quartz; lower fine to upper medium grained; moderately well to moderately sorted; sub - angular to sub - rounded to trace angular; multicolored lithics of orange, rust, light yellowish green, and dark gray; trace very fine grained light gray sandstone; slightly tuffaceous; trace amounts of light brownish gray to very light gray tuffaceous siltstone; firm to crumbly; dull earthy luster; silty to gritty texture. Coal (8530 -8619) = black to dark grayish black with dark brownish black secondary hues; firm to hard; irregular to blocky fracture; platy to flaky cuttings habit; lignitic to sub - bituminous grading to carbonaceous shale; dull earthy to slightly vitreous in part; trace brittle cuttings; silty to smooth texture; trace to common out gassing observed. Sand (8616- 8670) = light gray to medium light gray unconsolidated sand; abundant translucent, clear to milky white quart grains; fine to lower medium grained with fair to well sorting occasionally poor; sub - rounded to sub - angular; trace amount of tuffaceous claystone that is firm to brittle with light brownish gray to light gray; note trace amount of metal shavings in sample 8860'; no reaction from HCL. Coal /carbonaceous Shale (8670 -8720) = dark gray to dark brownish gray with brownish secondary hues; firm to tough with occasionally crumbly to brittle; irregular to planar fracture with some visible out gassing; massive to platy cuttings habit with a dull to earthy luster; smooth to silty texture; trace amount of lose clear to milky white quartz grains; abundant out gassing. Carbonaceous Shale / Coal / Sand (8720 -8790) = black to dark brownish gray; tough to firm to sometimes brittle; blocky to planar fracture with massive to platy cuttings habit; dull to earthy luster with smooth to silty texture; individual grains are clear translucent quartz that is mostly sub - rounded to sub - angular; fair to well sorting with occasionally poor; note large coal cavings from up hole within the sample interval; non calcareous. Tuffaceous Claystone (8790 -8840) = medium light gray to light gray to light brownish hues; moderately • cohesive; non adhesive; crumbly; no visible fracture or cuttings habit; dull luster; clayey to slightly silty texture in part; no visible structures or bedding; note coal cavings within sample interval are from large coal beds up hole; non calcareous. Tuffaceous Claystone (8840 -8900) = light gray to medium light gray to light brownish hues; moderately cohesive; non adhesive; crumbly to slightly brittle; no definite fracture or cuttings habit; dull luster; clayey texture to silty in part; no visible structures or bedding; note coal cavings still abundant within sample interval from up hole; non calcareous; trace light yellowish brown to brown flakes of carbonaceous shale. Sand (8920' - 89801 = light gray to very light gray overall with individual liths dominantly clear to translucent quartz and volcanic glass with trace amounts of light to dark gray, greenish gray, black rust and pale rose; very fine lower to medium lower, dominantly fine upper to lower; angular to subangular; moderately well to well sorted; dominantly unconsolidated with scattered very fine, very light gray sandstone; very fragile; ashy to clayey supporting matrix; non calcareous; commonly grades between sandy siltstone and silty sandstone. Sand/ Sandstone (8980' - 90601 = very light to light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace red, orange, black, light to medium green and greenish gray; very fine lower to coarse upper, dominantly fine lower to medium lower; angular to subangular; poor to fair sorting; unconsolidated with scattered ashy/ clayey supported sandstone pieces; very light gray to grayish white; very fragile; very fine grain; non calcareous; commonly grading between silty sandstone and sandy siltstone; trace light gray ashy tuff. Sand/ Sandstone (9060' - 91401 = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace amounts of darker liths; very fine lower to trace very coarse upper, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; dominantly unconsolidated with scattered very fine grain, very light gray sandstone; fragile; ashy/ clayey supporting matrix; non calcareous; commonly grades between silty sandstone and sandy siltstone. • 16 CANRIG CINGSA CLU Storage 4 Tuffaceous Claystone/ Tuffaceous Siltstone (9110' - 9140') = very light gray to light brownish gray with light brown secondary hues; soft to fragile; irregular shaped cuttings; silty to clayey texture; earthy to sparkly luster slight to moderately soluble and expansive; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace dark brown to black micro thin carbonaceous laminations and inclusions. Sand / Sandstone (9150' - 9270') = very light to light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace red, orange, black, light to medium green and greenish gray; very fine lower to coarse lower, dominantly fine lower to medium lower; angular to subangular; poor to fair sorting; unconsolidated with scattered ashy/ clayey supported sandstone pieces; very light gray to grayish white; very fragile; very fine grain; non calcareous; commonly grading between silty sandstone and sandy siltstone. Tuffaceous Claystone/ Tuffaceous Siltstone (9260' - 9320') = light to very Tight gray with trace light brownish gray secondary hues; soft; fragile and pulverulent; rounded, irregular shaped cuttings; silty to clayey texture; dull luster; moderately soluble; non to slightly expansive; poor to fair cohesiveness poor adhesiveness; non calcareous. Sand/ Sandstone (9320' - 9400') = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, abundant amounts of darker liths; very fine lower to trace coarse lower, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; dominantly unconsolidated with scattered very fine grain, very light gray sandstone; fragile ashy/ clayey supporting matrix; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (9380' - 9450') = very light gray to light brownish gray with light brown secondary hues; soft to fragile; irregular shaped cuttings; silty to clayey texture; earthy to sparkly luster; slight to moderately soluble and expansive; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace dark brown to black carbonaceous shale/ coal. Sand / Tuffaceous Claystone / Tuffaceous Siltstone (9440'- 9520') = light gray to very light gray with some dark gray in part; individual gains made up of clear to translucent quartz and volcanic glass with some medium to dark gray lithics; fine to lower coarse with occasionally very fine; fair to poor sorting; sub angular to sub rounded; tuffaceous claystone that has a crumbly to brittle tenacity with irregular fracture; massive to platy cuttings habit; very light gray to light brownish gray. Tuffaceous Claystone/ Tuffaceous Siltstone (9520'- 9580 ") = very light gray to light gray with medium gray in part; brittle to crumbly with some being firm to tough; poor cohesiveness with irregular fracture; dull to earthly luster; silty to gritty texture with trace multi colored lithics spread throughout trace amount of coal; no reaction from HCI. Tuffaceous Claystone / Tuffaceous Siltstone (9580'- 9640') = light gray to medium light gray with some dark gray in part; crumbly to brittle with some firm; irregular fracture with dull to earthy luster; peppered with dark gray lithics; trace amount of carbonaceous shale is present; clear to translucent quartz and volcanic glass that has poor to fair sorting is also present in part; non calcareous. Sandstone/ Sand (9640'- 9700') = light gray with light greenish gray secondary hues; firm to fragile; irregular shaped cuttings; very fine upper to lower; angular to subangular; moderately well sorted; moderately well to well consolidated; grain supported; non calcareous; trace to common dark brown to black carbonaceous shale/ coal stringers. Sandstone / Sand (9700'- 9800') = light gray to medium light gray with a slight salt and pepper appearance; very fine to lower fine grained; fair to well sorting; sub angular to sub rounded mostly unconsolidated cuttings; trace amount of dark brown to brownish gray carbonaceous shale / coal with firm to brittle tenacity; irregular fracture with a dull earthy to sub metallic luster; non calcareous. • 17 CA■NRIG CINGSA CLU Storage 4 Sand (9800'- 9870') = very light gray to light medium gray with a salt and pepper appearance; consists mostly of clear to translucent quartz and volcanic glass; trace amount of light gray to milky white grains; sub rounded to sub angular with fair to poor sorting; trace tuffaceous claystone cuttings that are crumbly to brittle; light brownish gray with a dull to earthy luster; trace coal and carbonaceous shale inter- bedding; no reaction from HCI. Sand / Tuffaceous Claystone / Tuffaceous Siltstone (9870'- 9960') = very Tight gray to medium light gray with grayish brown hues in part; mostly unconsolidated translucent quartz grain and volcanic glass; trace multi color lithics, light bluish green, orange, milky white, and light gray; tuffaceous claystone and siltstone has increased over the interval; irregular cuttings with little to no cohesiveness with dull to earthy luster; ashy to brownish gray; large amount of Icm and safe carb present. Sand (9960'- 10020') = light gray to very light gray with medium light gray; clear to translucent quartz and volcanics; rounded to subrounded with sub angular in part; milky white to light gray hues are also present with fair to well sorting; Icm and safe carb still prevalent; trace amounts of tuffaceous claystone; ashy to very light brownish gray with irregular cuttings habit with very little structure; dull earthy luster with dark lithics peppered through out. Sand (10020' - 10090') = very light gray light medium gray with a salt and pepper appearance; consists mostly of clear to transparent quartz and volcanic glass; trace amount of light gray to milky white grains; sub rounded to sub angular with some rounded in part; abundant safecarb and Icm is visible; tuffaceous claystone and ashy tuffaceous siltstone has increased; crumbly to brittle; light brownish gray hues with dull to earthy luster; strong reaction from HCI due to large safe carb content. Sand / Tuffaceous Claystone / Tuffaceous Siltstone (10090- 10160') = light gray to very light gray with some darker hues present; poor to fair sorting with abundant translucent quartz and volcanic glass; sub rounded to sub angular with some rounded; fine to very fine grains with lower medium in part; tuffaceous claystone crumbly to brittle tenacity dull to earthy luster with irregular cutting habit; Icm and safe carb • contaminations continues. Sand (10160' - 10240') = light to very light gray overall with individual liths dominantly clear to translucent quartz and volcanic glass, trace amounts of red rust, black, pale rose and light to medium greenish gray; very fine lower to trace very coarse lower, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; unconsolidated; continued safe carb mud additive (crushed marble) contamination (10 % -30 %) Sand/ Sandstone/ Tuffaceous Sandstone (10240' - 10330') = light gray to very Tight gray overall with individual grain dominantly clear to translucent quartz and volcanic glass with trace amounts of various multicolored liths; angular to subangular; very fine lower to trace coarse upper, dominantly fine upper to lower; moderately well sorted; dominantly unconsolidated with trace medium light to light gray sandstone with a light greenish gray secondary hue; fragile to friable; very fine to fine grain; non calcareous; trace grayish white tuffaceous sandstone; very fragile; ashy tuff supporting matrix; non calcareous; continued safe carb contamination. Sand/ Sandstone (10330' - 10420') = very light to light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace amounts of rust, red, pale rose, black, light greenish gray and medium to dark gray; angular to trace subrounded, dominantly subangular; very fine lower to trace very coarse lower, dominantly fine upper to medium lower; poor to fair sorting; dominantly unconsolidated with trace ashy supported sands; very fragile trace very fine to fine grain sandstone; light greenish gray to light gray; fragile to brittle; non calcareous; trace dark brown to black carbonaceous shale/ coal; present as very thin beds; no out - gassing observed; continued safe carb mud additive contamination. Sand (10420' - 10500') = light to very light gray overall with clear to translucent quartz and volcanic glass dominant trace to scattered various multicolored liths; angular to subangular; very fine lower to trace very coarse, dominantly medium upper to lower; poor to fair sorting; unconsolidated; trace dark brown to black carbonaceous material/ coal; poorly developed; silty in part; splintery; silty to gritty texture; earthy luster; no out gassing present; continued safe carb contamination. • 18 CANRIG C 3.2 Sampling Program CINGSA CLU Storage 4 SAMPLE MANIFEST: BOXED WASHED AND DRIED SAMPLES 2 Sets Total: 1 Package of 6 Boxes Each Operator: CINGSA Well Name: CLU Storage 4 Field: Cannery Loop/ Sterling C Pool County: Kenai Borough State: Alaska Company Representatives: John Nicholson, Steve Ratcliff Location: 670' FNL 1762 FEL SEC. 9 T5N R11W Classification: Gas Storage API #: 50- 133 - 20598 -00 -00 Permit #: 211122 Rig Name /Type: Nabors 105e/ Land/ Triple Total Depth 10500' Total Depth Formation: Sterling C Total Depth Date: October 17, 2011 Logging Geologists: Zach Beekman, Doug Acker, Jim Foradas, Ralph Winkelman • Sample Catchers: Jim Foradas, Steve Franzen Set Type and Purpose Interval Frequency Distribution AOGCC 1 Washed and Dried 2482' — 8619' 30' Interval 333 West 7 Ave Ste 100 Reference Samples 8619' — 10500' 20' Interval Anchorage, Alaska 99501 ATTN: Howard Okland 2 Washed and Dried 2482' — 8619' 30' Interval PRA/ CINGSA Reference Samples 8619' — 10500' 20' Interval NOTE: All samples released to Ari Berland, Geologist, PRA/ CINGSA: 10 -18 -2011. BOX INTERVALS: 2482' -4180' 4180' -5830' 5830' -7450' 7450' -8620' 8620' -9760' 9760'- 10500'TD • 19 CANrG CINGSA CLU Storage 4 4 DRILLING DATA 4.1 Daily Activity Summary September 28, 2011 Drilled to 255';POH to PU remainder of BHA; RIH -drlg with surveys; visc gel sweeping periodically; large quantities of sand /clay on bottoms up; drilled to 615" @ midnight. September 29, 2011 Drilling /Sliding building angle to 61.5 deg; drilled to TD @2482'; CBU 2+ times; short trip to HWDP. September 30. 2011 Back @ HWDP. @ 866 FT Wipe out hole F/932' – 899' Pull 1 -STD HWDP @ 795'. OK TIH @ 881'; Fill Pipe, slide in hole W/ Slow pump rate & tag fill @ 2480' (2FT) Wash to BTM @ 2482 ". Drop Carbide, Pump 29 BBL/ High VIS sweep around @ 500 BPM w/ 1400 PSI. RECIP. PIPE F/ 2482- 2415'.P/U 84K. S/O 70 K. RT 75K. ROT Pipe @ 110 RPMS. Worked through One tight spot (30K Over Pull) @ 718'. OK. St/ Back 8" MDC in Derrick. TOH – Drain MotorASSY. L/D Bit. Make up shoe track and RIH w/ 13 3/8 CSG. Worked pipe in hole from 1750' to 2347'. October 1, 2011 Work casing to bottom. RIH w /dp. Circulate 13.375 csg annulus. Mix cement spacer in pillpit. Cement and displace; cement in place at 11:30 am. Pull 25' up and circulate casing and dp clean. LD single and pump dp wiper balls. POH w /dp. October 2, 2011 Finished cleaning mud pits; re[aired valve leak; transferred in; mix water; mix new volume; maintain pet 6 six with old mud for drill out; changed shaker screens to all 200 mesh; Test BOPE; set wear bushing; rig up /test casing string; make up drill pip to stand backing derrick; rig service ; R/U to pick up BHA. October 3, 2011 P/U BHA -test directional tools; P/U HWDP; wash /rotate into hole; tag fill /cement @2333'- 2414'; drill shoe and shoe track to 2502'; circulate /displace to new mud system; clean out around shakers; FIT @ 15.4 EMW; drilling @3671' @ Report time; circulate bottoms up every 500' drilled. October 4, 2011 Drilled to 4,631'; circulate hole clean; short trip to shoe; worked through some tight spots; serviced to rig; RIH - wash and ream tight spots 2873'- 3192'; RIH onto bottom; circulate system surface to surface; drilled ahead to 4918' @midnight. October 5, 2011 Drilling from 4918'- 6259'; circulate /condition, surface to surface; back ream to 4630'; ran in on elevators washing last stand down; drilling to 6565' at midnight. October 6, 2011 Drilled @ 6565 -7215; pumped Nut Plug sweeps in attempt to clear bit of potential balling; Drilled @ 7215- 7694'; circulate /condition - pumped sweep surface to surface; pump repairs; wash /ream short trip to 6153'; RIH at report time on elevators. October 7, 2011 RIH at 6642' -7598' on elevators; wash /ream to 7694'; Drilling a head to TD at 8619'; circulate and condition — pump bottoms up; hole clean; POOH back reaming at 8619'- 7598" at midnight. 20 CANRIG October 8, 2011 CINGSA CLU Storage 4 Tripped out at 7568' -6067' on elevators; worked tight spots; back reamed /wash and ream @6067' -2467' — casing show while standing back drill pipe; CBU at shoe; trip out on elevators laying down BHA; download MWD; service rig, top drive, blocks. October 9, 2011 Service Rig; P/U BHA #4- 12.25" clean out assembly; work on top drive; P/U BHA -RIH to TD; circulate and condition; pump sweep and lube pill; POOH to 2386'; low fuel caused generator to shut down; circulate /condition; POOH at report time. October 10, 2011 Pulled Wear bushing; Installed test plug to protect against tool drops; Changed out Rams to 9 5/8 ". M/U casing Test Joint; Tested rams to 250/2500 psi. Changed out bails; Rigged up stabbing board and casing running tools; Installed casing circulating tool on top drive; Made gage run with 9 5/8" hanger. Picked up Baker locked shoe joint, made up baker locked float collar jt. Float Collar two its up from shoe. Ran 9 5/8" 40# L80 Butt casing to +/- 3,500' ;Picked up baker locked DV joint. Continue to Run 9 5/8" to TD. October 11,2011 Ran casing to 8506'; Circulated bottoms up; ran casing /landed; circulate /condition ; primary cement; dumped 80 bbls cement/contaminated mud; second stage; dumped 35 bbls cement/contaminated mud; rig down cementers; N/U BOPE, wellhead; install pack off; rig down /clean floor. October 12, 2011 Changed rams; picked up test tools, tested BOPS, LD test tools and pulled test plug. Blew down choke manifold and lines; Serviced top drive blocks and crown; Picked up BHA#4 steerable motor with triple combo and TIH. • October 13, 2011 MU BHA and RIH; RIH and drilled out DV plug; Circulate hole clean up cement contamination. Hit cement stringers at 3450'- 3750'; Circulate through; RIH to 7170'; Circulate and clean; Continued TIH. Tagged cement at 8,524'. Drilled float collar and new hole to 5,640'. Performed FIT with 9.3 PPG mud to 1605 PSI (15.5 ppg EMW). Continued drilling to 8646' MD October 14, 2011 Slide drilling and rotate drilling from 8646' to 9094'; Slide drilling from 9094 to 9478'; back reaming tight spots from 9370' to 9355'; Circulate and condition, circulate B/U to clean hole. Trip out to work tight spots. Lost returns. TIH to 9281' October 15, 2011 Continued working pipe, washing, reaming to 9058' Dropped well commander ball, waited on ball to drop seat. Circulated and conditioned; Pumped 85 bbls 9.2 ppg 100 ppb LCM pill, Regained circulation after opening Well Commander; Continued working pipe, back reaming out of hole to 8608' casing shoe; Closed well commander; Circulated and conditioned mud and hole. October 16, 2011 Service Top Drive; Trip in hole reaming and washing; Slide Drilling from 9478' to 9503', Rotary drilling from 9503' to 9764'. Lost returns, Circulate and Condition due to lost circulation, continue to working pipe at tight spot @ 9515' Drop Well Commander Ball. October 17, 2011 Drilled to 10,242'; Short trip to 9768" by pumping at 350 gpm, 74RPM, torque 18k, well breathing fluid (taking when pumping then giving back when pumps are off). Slide and drill to 10500'. (total depth) Back ream short trip to 10,424'. Circulate and condition, TIH to 10,500'. Back reamed to 9,190' packing off at 9,545' with well breathing loss up to 74 bbls, then back to 7 bbls. 21 CANRIG CINGSA CLU Storage 4 October 18, 2011 Back reamed from 9,100' to 8,608, no tight hole; Circulated bottoms up, TIH on elevator to bottom at 10,500'. Back reamed from bottom to 8,608'; no hole problems. Circulate BU and TOOH. Laying down BHA October 19, 2011 Lay down BHA; Drain Motor; break off bit; cased hole logs: PJSM R/U baker wire line and tools; PU test tools; pull wear ring; R/U test plug; Test BOP; LD test tools R/D test equip; Test JT and test plug; Pick up 3 party tools P/U 10' PUP and Cement Rotary Head; R/U to run casing; PJSM with all involved; make up shoe track float ASSY. Fill Check FLO; Run Liner TIH w/7" liner to 2044'; Trip in hole w/ DP to 3127'; Fill every 10 STDS. October 20, 2011 Run liner; fill pipe every 10 stands; pick up cement head; Circulate and condition; Run liner tag tight spot at 8694' ( coal section) wash to 8720' No pump no returns at 8640' break circ.; regain returns; run liner washing from 8640 to 10473 — 3 BPM @ 200 PSI. Run liner cement rotary head. M/U circ. Lines and valves; Circulate and condition install wiper ball; Pump dry jon; blow down TD; Trip out of hole; lay down 3 party tools / M/u cement rotary head assy. B/O single and top 10' PUP. Lay down same; clear floor. October 21, 2011 Trip out of hole w/ 7" liner ring tool; Lay down drill pipe; Trip in hole w/ 8 stands HWDP and JARS; Lay down drill pip 23 JTS; Service top drive; Trip in hole to liner top tag at 8424'; Pressure test casing /shoe 30 min. at 2500 psi; circulate and condition circ bit to surface; lay down drill pipe from 8424'; UD 96 JTS 4.5 DP. October 22, 2011 Lay down drill pipe; service rig and blocks; Completion -trip tubing /DP ; pull wear ring; hold PJSM with all personnel involved with P/U and RNG 7" production string; Completion trip Tubing /DP; powered catwalk replaced leaking fittings on pip racks and on pipe skate; continue RIH with Tubing /DP. October 23, 2011 Rig down. 22 CANRIG CINGSA CLU Storage 4 4.2 Surveys Measured Latitude Departure Vertical Dogleg p Incl. Azim. True Vertical (ft) (ft) Section Rate Depth ( °) ( °) Depth (ft) N( +), S( _ E( +), W( (lncr) (ft) ( °!100ft) 267 0.56 307.95 267.00 0.81 1.04 0.53 0.21 292 0.63 306.32 391.99 0.97 1.25 0.63 0.28 381 2.31 242.01 380.97 0.42 3.22 2.63 2.37 471 4.92 237.65 470.78 2.48 8.10 8.30 2.92 561 8.22 240.64 560.18 7.69 16.98 18.59 3.68 651 10.75 236.76 648.94 15.45 29.61 33.39 2.90 741 13.66 236.24 736.89 25.96 45.47 52.35 3.24 830 17.15 237.44 822.68 38.87 65.28 75.92 3.94 926 20.61 240.25 913.50 54.87 91.89 106.94 3.60 1022 23.04 240.83 1002.61 72.42 122.98 142.63 2.53 1118 24.42 239.73 1090.49 92.58 156.52 181.25 1.51 1 1213 25.38 239.09 1176.66 111.94 190.95 221.22 1.05 1309 26.74 238.43 1262.90 133.82 227.00 263.35 1.45 1405 29.22 237.18 1347.67 157.83 365.10 308.29 2.65 1502 32.70 237.32 1430.84 184.82 307.07 358.04 3.59 1597 36.11 237.40 1509.21 213.76 352.26 411.57 3.60 1693 38.60 238.01 1585.51 244.88 401.50 469.70 2.62 1789 40.94 237.34 1659.29 277.72 453.39 530.97 2.48 1885 43.09 237.19 1730.61 312.47 507.44 595.05 2.24 1981 54.37 238.35 1799.39 348.17 564.09 661.86 2.52 2077 48.51 239.28 1864.93 384.47 624.09 731.91 3.35 2172 51.90 238.92 1925.73 421.95 686.71 804.83 3.58 2268 54.69 237.98 1983.11 462.22 752.28 881.67 3.01 2364 57.87 238.78 2036.40 504.07 820.28 961.39 3.39 2428 59.09 240.05 2069.86 531.82 867.24 1015.91 2.54 2578 60.41 241.09 2145.43 595.47 980.10 1145.46 1.07 2673 61.50 241.23 2191.55 635.53 1052.85 1228.51 1.16 2768 61.50 241.16 2236.88 675.75 1126.01 1312.00 0.06 2863 61.51 240.75 2282.20 716.29 1199.00 1395.49 0.38 2960 61.47 240.13 2328.49 758.34 1273.15 1480.71 0.57 3057 61.49 239.91 2374.81 800.93 1346.97 1565.91 0.20 3153 61.48 239.31 2420.64 843.60 1419.74 1650.22 0.55 3248 61.49 239.24 2465.99 886.25 1491.49 1733.63 0.06 3343 61.49 238.52 2511.34 929.39 1562.96 1817.02 0.67 3440 61.50 238.43 2557.63 973.97 1635.62 1902.14 0.08 3535 61.69 238.38 2602.82 1017.75 1706.79 1985.59 0.20 3630 61.67 237.97 2647.89 1061.85 1777.85 2069.07 _ 0.38 23 CANRKi CINGSA CLU Storage 4 Measured True Latitude Departure Vertical Dogleg Depth Incl. 1 . Azom. Vertical (ft) (ft) Section Rate (ft) () () Depth (ft) N( +), S( -) E( +), W( -) (lncr) (ft) ( °/100ft) 3726 61.66 237.76 2693.46 1106.79 1849.40 2153.40 0.19 3821 61.88 237.84 2738.40 1151.39 1920.23 2236.92 0.24 3917 61.84 237.69 2783.67 1196.54 1991.83 2321.40 0.14 4013 61.82 237.98 2828.99 1241.59 2063.59 2405.86 0.27 4109 61.98 237.73 2874.20 1286.65 2135.18 2490.37 0.28 4204 62.06 238.32 2918.78 1331.07 2206.35 2574.78 0.55 4300 62.01 238.77 2963.80 1375.32 2278.68 2658.79 0.41 4396 62.01 238.59 3008.85 1419.39 2351.09 2743.45 0.17 4492 62.03 238.89 3053.89 1463.39 2423.56 2828.13 0.28 4588 62.02 239.34 3098.91 1506.91 2496.33 2912.85 0.42 4687 61.82 239.30 3145.49 1551.48 2571.46 3000.14 0.23 4781 62.88 240.00 3189.84 1593.36 2642.98 3082.84 0.66 4877 61.89 239.73 3235.08 1635.87 2716.20 3167.62 0.24 4971 61.87 240.03 3279.39 1677.47 2787.91 3250.49 0.28 5067 61.87 240.11 3324.28 1719.71 2861.28 3335.12 0.07 5163 62.06 239.44 3369.78 1762.36 2934.50 3419.81 0.65 5259 62.05 239.76 3414.77 1805.27 3007.65 3504.57 0.29 5355 62.00 239.46 3459.80 1848.16 3080.78 3589.31 0.28 5450 62.04 238.94 3504.38 1891.12 3152.84 3673.13 0.48 5546 62.01 239.01 3549.41 1934.81 3225.49 3757.83 0.07 5642 62.04 239.07 3594.45 1978.43 3298.20 3842.53 0.07 5738 62.09 238.78 3639.42 2022.20 3370.84 3927.26 0.27 5834 62.08 239.04 3684.37 2066.00 3443.48 4012.00 0.24 5929 61.86 238.94 3729.02 2109.20 3515.35 4095.78 0.25 6025 61.88 238.76 3774.28 2152.99 3587.81 4180.35 0.17 6121 61.82 238.44 3819.57 2197.09 3660.05 4264.88 0.30 6219 61.86 238.36 3865.83 2242.37 3733.64 4351.15 0.08 6314 61.96 238.37 3910.56 2286.33 3805.00 4434.84 0.11 6409 62.03 238.95 3955.16 2329.95 3876.63 4518.61 0.54 6505 61.99 238.86 4000.22 2373.74 3949.23 4603.30 0.09 6600 61.94 238.85 4044.87 2417.10 4020.99 4687.06 0.06 6696 62.00 238.97 4089.99 2460.86 4093.56 4771.71 0.12 6791 62.00 238.89 4134.59 2504.14 4165.40 4855.50 0.07 6887 61.98 239.04 4179.68 2547.84 4238.02 4940.17 0.13 6981 62.00 239.29 4223.84 2590.37 4309.28 5023.09 0.24 7077 62.01 239.87 4268.90 2633.29 4382.37 5107.80 0.53 7173 62.06 239.53 4313.92 2676.07 4455.58 5192.55 0.31 7269 62.01 239.33 4358.94 2719.19 4528.58 5277.29 0.18 7365 62.03 239.78 4403.97 2762.15 4601.68 5362.02 0.41 24 CANR G CINGSA CLU Storage 4 Measured True Latitude Departure Vertical Dogleg Depth Incl. Azim. Vertical (ft) (ft) Section Rate (ft) ( ° ( °) Depth (ft) N( +), S( -) E( +), W( -) (Incr) (ft) 0100ft) 7461 62.00 239.60 4449.02 2804.93 4674.87 5446.75 0.16 7556 62.00 239.73 4493.62 2847.30 4747.26 5530.59 0.11 7654 61.91 239.48 4539.69 2891.06 4821.87 5617.04 0.24 7748 61.86 239.16 4583.98 2933.37 4893.17 5699.89 0.31 7843 61.83 238.77 4628.81 2976.55 4964.94 5783.56 0.36 7939 61.84 238.97 4674.13 3020.30 5037.39 5868.10 0.18 8035 63.10 240.07 4718.51 3063.47 5110.75 5953.18 1.66 8131 64.89 241.62 4760.60 3105.50 5186.09 6039.44 2.36 8226 67.02 242.86 4799.31 3145.89 5262.86 6126.18 2.54 8322 69.84 244.04 4834.61 3185.78 5342.72 6215.40 3.15 8415 72.88 244.94 4864.33 3223.72 5422.24 6303.38 3.39 8514 73.94 245.64 4893.43 3263.27 5508.20 6397.80 0.68 8577 73.14 246.03 4911.73 3288.01 5563.16 6457.90 0.67 8652 73.07 249.71 4922.52 3316.77 5628.90 6528.40 0.87 8747 75.72 247.12 4959.08 3352.64 5713.07 6620.48 2.82 8843 81.34 246.84 4978.19 3389.42 5799.62 6714.10 5.86 8939 82.35 248.65 4991.78 3425.41 5887.57 6808.56 2.14 9034 82.29 248.71 5004.47 3459.64 5975.27 6901.97 0.09 9131 82.57 249.08 5017.25 3494.26 6064.98 6997.32 0.48 9228 85.05 249.30 5027.71 3528.52 6155.12 7092.88 2.57 9322 84.74 249.09 5036.07 3561.77 6242.64 7185.67 0.40 9419 83.90 249.12 5045.67 3596.20 6332.81 7281.34 0.87 9514 86.07 248.99 5053.98 3630.02 6421.19 7375.15 2.29 9609 86.50 248.69 5060.13 3664.25 6509.60 7469.17 0.55 9703 86.74 248.77 5065.68 3698.29 6597.04 7562.26 0.27 9799 87.33 248.40 5070.64 3733.29 6686.29 7657.40 0.73 9894 87.26 249.74 5075.12 3767.19 6774.93 7751.47 1.41 9989 86.06 251.51 5080.66 3798.65 6864.39 7845.10 2.25 10087 86.19 251.44 5087.28 3829.72 6957.10 7941.40 0.15 10184 86.34 251.32 5093.60 3860.62 7048.82 8036.76 0.20 10278 86.37 251.31 5099.58 3890.67 7137.69 8129.19 0.03 10374 86.56 251.84 5105.50 3920.96 7228.60 8223.53 0.59 10441 87.02 251.83 5119.25 3941.81 7292.16 8289.34 0.69 10500 87.02 251.83 5112.32 3960.19 7348.14 8347.31 0.00 25 CANRIG • • s CINGSA CLU Storage 4 4.3 Bit Record BIT SIZE JETS/ AVE NO. TYPE S/N TFA IN OUT FT HRS ROP CONDITION Ft/HR 1 16" HCC VM1 5198929 3x18,16cj/ 118' 2482' 2364' 15.5 152.5 1- 1- WT- A- E- I -NO -TD 0.942 2 12 -1/4" HCC QD505X 7131957 8x12/ 2482' 8619' 6137 45.1 182.1 1- 1- WT- A- X- I -NO -TD 0.8836 3 8 -1/2" HCC HCR503ZX 7114328 3x13 3x14/ 8619' 10500' 1881' 21.1 76.54 1- 1- WT- A- X- I -NO -TD 0.8399 26 CANRIG • • S CINGSA CLU Storage 4 Mud Record Contractor: MI Swaco Mud Type: Used Spud Mud 118' - 2482'; Flo Pro NT 2482' - 8619', Flo -Pro NT 8619' - 10500' MW VIS FL Sols O/W Sd CI Ca Date Depth (ppg) (s /qt) PV YP Gels (cc) FC _ ( %) Ratio ( %) MBT pH (mI /1) (m1/1) 9/28/11 635 9.25 50 16 17 4/9/0 7.5 1/0 6.5 3/90.5 0.2 8 10.3 13000 200 9/29/11 2483 9.3 65 14 26 15/27/30 7.5 <2/ 7 1/92 0.33 17.5 9.4 7000 600 10/1/11 2483 9.2 52 15 19 14/27/29 8.4 <2/ 7 1/92 0.33 17.5 9.1 6000 600 10/2/11 2483 9.2 51 15 16 12/20/22 9 2/ 7 1/93 0.2 17.5 9.0 6000 580 10/3/11 2483 8.8 80 11 23 9/12/15 6 1/ 5 /95 0 0.2 8.5 20350 160 10/4/11 4726 8.8 46 9 22 7/10/11 6.2 <1/ 3 3/95 0.5 1.5 9.3 18000 160 10/5/11 6437 9.0 55 14 25 10/13/14 6 1/ _ 4 3/94 0.5 2 9.5 19000 160 10/6/11 7694 9.1 51 14 26 13/18/20 5.8 1/ 4 4/92 0.5 3 9.3 18000 140 10/7/11 8619 9.2 54 14 30 12/16/18 5.6 1/ 4.5 4/92 0.5 8 9.6 18000 200 10/8/11 8619 9.1 50 14 20 10/14/16 5.6 1/ 4.5 4/92 0.5 13 9.1 18000 220 10/9/11 8619 9.1 47 13 20 10/12/15 5.4 1/ 4.5 4/92 0.5 13 9.2 19000 200 10/10/11 8619 9.1 47 13 20 10/12/15 5.4 1/ 4.5 4/92 0.5 13 9.2 19000 200 10/11/11 8619 9.2 50 13 19 9/12/13 5.8 1/ _ 4.5 4/92 0.5 14 9.2 18000 200 10/12/11 8619 9.3 54 14 16 8/13/14 6.8 1/ _ 4.5 4/92 0.7 13 11.9 17000 860 10/13/11 8648 9.1 45 14 16 7/13/14 7 1/ 4 4/93 0.33 13 11.4 16000 640 10/14/11 9478 9.2 50 14 19 8/15/17 6.6 1/ 4.4 3/93 0.33 12 11.5 13000 280 10/15/11 9478 9.0 46 12 20 5/10/11 6.6 1/ 5 2/93 0.33 12 10.3 14000 400 10/16/11 9878 9.2 51 16 15 5/10/12 4.3 1/ 6 3/91 0.3 12 9.2 15000 280 10/17/11 10500 9.1 45 12 19 5/10/11 6.2 1/ 4.5 3/93 0.33 10 9.2 16000 200 10/18/11 10500 9.2 48 13 19 5/8/9 6 1/ 0.5 3/93 0.5 11 9.2 16000 160 Contractor: MI Swaco Mud Type: Used Spud Mud 118' - 2482'; Flo Pro NT 2482' - 8619', Flo -Pro NT 8619'- 10500' Abbreviations: MW = Mud Weight VIS = Funnel Viscosity PV = Plastic Viscosity YP = Yield Point Gels = Gel Strength FL = Water or Filtrate Loss FC = Filter Cake O/W = Oil to Water ratio Sols = Solids Sd = Sand content MBT = Methylene Blue Alk,Pm = Alkalinity, Mud pH = Acidity /Basicity CI = Chlorides Ca = Hardness Calcium nr = Not Recorded 27 CANRIG • • • CINGSA CLU Storage 4 5 DRILLING PROGRESS CHART CLU Storage 4 0' Move Rig In Drill 16" Hole Depth Time 2000' Ru Drill 12 1/4" Hole NU n& 4000' Cm an d F 13 Tes u r a a 3/8 : • 00 00 e 6000' al v v � o Estimated Depth -Time Csg d v v —f— Actual - v v n3 U c m pp 8000' 3 3 cc ca r-. a - O cm o 1 U N U U - a O C O c , N O1 10000' . - - a Drill Wilk 12000' — 0 5 10 15 20 25 30 35 40 Days 28 colgsin I%nur: trFVev K.u.r Lrn • CINGSA CLU Storage 4 6 DAILY REPORTS 29 CANRIG CINGSA CLU Storage 4 50 CANRIG Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR John Nickolson DATE Sep 28, 2011 DEPTH 615.00000 PRESENT OPERATION Drilling Ahead TIME 23:49 PM YESTERDAY 118.00000 24 HOUR FOOTAGE 497 CASING INFORMATION 20' Conductor set at 118ft DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 267.00 0.56 307.95 267.00 292.00 0.63 306.32 291.99 SURVEY DATA 381.00 2.31 242.01 380.97 471.00 4.92 237.95 470.78 561.00 8.22 240.64 560.18 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T /B /C PULLED 1 16" VM1 3 -18'5, 16 CJ 5198929 .942 118' 497 4.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 368.6 @ 323 16.7 @ 167 189.1 155.36662 FT /HR SURFACE TORQUE 6338 @ 545 2 @ 324 805.1 1731.77319 FT -LBS WEIGHT ON BIT 43 @ 521 0 @ 187 10.0 8.77881 KLBS ROTARY RPM 60 @ 256 57 @ 615 28.9 57.00000 RPM PUMP PRESSURE 1127 @ 596 450 @ 118 807.3 994.50323 PSI DRILLING MUD REPORT DEPTH • MW 9.25 VIS 60 PV 16 YP 17 Gels 4/9/0 FL CL- 13000 FC SOL 6.5 SD OIL 3/.90.5 MBT 8 pH 10.3 Ca+ 200 KCI 10000 MWD SUMMARY INTERVAL 118 TO 615 TOOLS MOTOR - STEERABLE 1.3 DEG / GAMMA GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 @ 0.0 TRIP GAS NA CUTTING GAS 0 @ 0 @ 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C -1) 0 @ 0 @ 0.0 CONNECTION GAS: HIGH 0 ETHANE (C -2) 0 @ 0 @ 0.0 AVG 0 PROPANE (C -3) 0 @ 0 @ 0.0 CURRENT 0 BUTANE (C -4) 0 @ 0 @ 0.0 CURRENT: BACKGROUND / AVG 0 PENTANE (C -5) 0 @ 0 @ 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY NO SAMPLING PRESENT LITHOLOGY Sand /Clay DAILY ACTIVITY Drilled to 255';POH to PU remaider of BHA; RIH -drlg with surveys; visc gel sweeping periodically; large quantites of SUMMARY sand /clay on bottoms up; drilled to 615" @ midnight CANRIG PERSONNEL ON BOARD (2) D. Acker / Z. Beekman DAILY COST $3402.00 REPORT BY Doug Acker II Cook Inlet Natural Gas 0 Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR John Nickolson DATE Sep 29, 2011 DEPTH 2482' PRESENT OPERATION Short Tripping TIME 21:38 PM YESTERDAY 615' 24 HOUR FOOTAGE 1867' CASING INFORMATION 20' Conductor set at 118ft DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2077 48.51 239.28 1864.93 2172 51.90 238.92 1925.73 SURVEY DATA 2268 54.69 237.98 1983.11 2364 57.87 238.78 2036.40 2428 59.09 240.05 2069.86 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS /TFA IN OUT FOOTAGE HOURS T /B /C PULLED 1 16" VM1 3 -18'S, 16 CJ 5198929 .942 118 2364 15.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 393.2 @ 1566 16.6 @ 715 198.4 152.73006 FT /HR SURFACE TORQUE 12789 @ 1862 1 @ 2186 1518.8 0.00000 FT -LBS WEIGHT ON BIT 43 @ 2472 0 @ 1364 22.0 40.50142 KLBS ROTARY RPM 100 @ 1926 1 @ 1482 29.1 0.00000 RPM PUMP PRESSURE 2163 @ 2103 691 @ 657 1568.3 1530.11609 PSI DRILLING MUD REPORT DEPTH 2483' MW 9.3 VIS 78 PV 14 YP 26 Gels 15/17/30 FL 12.4 CL- 7000 FC <2 SOL 7 SD .33 OIL 1/92 MBT pH 9.4 Ca+ 600 KCI MWD SUMMARY INTERVAL 615' TO 2482' TOOLS MOTOR - STEERABLE 1.3 / GAMMA GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 43 @ 1521' 0 @ 1238' 11.1 TRIP GAS NA CUTTING GAS 0 @ 2482' 0 @ 2482' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C -1) 10322 @ 1521' 14 @ 1238' 2212.2 CONNECTION GAS: HIGH NA ETHANE (C -2) 7 @ 1110' 0 @ 1143' 0.2 AVG NA PROPANE (C -3) 0 @ 2482' 0 @ 2482' 0.0 CURRENT 0 BUTANE (C -4) 0 @ 2482' 0 @ 2482' 0.0 CURRENT: BACKGROUND/ AVG 0 PENTANE (C -5) 0 @ 2482' 0 @ 2482' 0.0 HYDROCARBON SHOWS None INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY NO Sampling in surface interval PRESENT LITHOLOGY Sand /Gong DAILY ACTIVITY SUMMARY Drilling /Sliding building angle tp 61.5 deg; drilled to TD @2482'; CBU 2+ times; short trip tp tp[ of HWDP CANRIG PERSONNEL ON BOARD (2) D. Acker / Z. Beekman > DAILY COST $2427.00 • REPORT BY Doug Acker Cook Inlet Natural Gas • Cannery Loop / Stealing C DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR John Nickolson DATE Sep 30, 2011 DEPTH 2482' PRESENT OPERATION RIH w/ Casing TIME 23'59:14 PM YESTERDAY 2482' 24 HOUR FOOTAGE 0 CASING INFORMATION 20' Conductor set a 1180 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2428' 59.09 240.05 2069.86' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS / TFA IN OUT FOOTAGE HOURS T /B /C PULLED 1 16" VM1 3 -18'S, 16 CJ 5198929 .942 118' 2482' 2364' 15.5 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 2482 MW 9.2 VIS 52 PV 15 YP 19 Gels 14/27/29 FL 8.4 CL- 6000 FC v2/ SOL 7 SD 0.33 OIL 1/92 MBT 17.5 pH 9.1 Can 600 KCI MWD SUMMARY INTERVAL TO TOOLS No tools in hole GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA al CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C -1) @ @ CONNECTION GAS: HIGH NA ETHANE (C -2) @ @ AVG NA PROPANE (C -3) @ @ CURRENT 0 BUTANE(C -4) @ @ CURRENT: BACKGROUND/ AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS No new footage at this time INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY No new footage at this time PRESENT LITHOLOGY DAILY ACTIVITY Back 0 HWDP. @ 866 FT Wipe out hole F/932' — 899' Pull 1 -STD HW DP 0 795'. OK TIH @ 881'; Fill Pipe, slide m hole W/ Slow pump rate & tag fill @ 2480' (2FT) Wash to BTM @ 2482 ". SUMMARY Drop Carbide, Pump 29 BBL/ High VIS sweep around 0 500 BPM w/ 1400 PSI RECIP. PIPE F/ 2482- 2415'.P/U 84K. 0/0 70 K. RT 75K. ROT Pipe 0 110 RPMS. Worked through One tight spot (30K Over Pull) 0 718'. OK. St/ Back 8" MDC in Derrick. TOH — Drain Motor ASSY. L/D Bit. Make up shoe track and RIH w/ 13 3/8 CSG. Worked pipe In hole from 1750' to 2347' CANRIG PERSONNEL ON BOARD (2) D. Acker / Z. Beekmen > DAILY COST $2427.00 REPORT BY Doug Acker • Cook Inlet Natural Gas • Cannery Loop /Stealing C DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR John Nickelson DATE Oct. 1, 2011 DEPTH 2482' PRESENT OPERATION Setting Cement TIME 23:59 PM YESTERDAY 2482' 24 HOUR FOOTAGE 0 CASING INFORMATION 20' Conductor set a 1180 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2428' 59.09 240.05 2069.86' BIT INFORMATION INTERVAL CONDITION REASON NO SIZE TYPE S/N JETS / TFA IN OUT FOOTAGE HOURS T /B /C PULLED 1 16" VM1 3 -18'S, 16 CJ 5198929 .942 118' 2482' 2364' 15.5 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 2482 MW 9.2 VIS 51 PV 15 YP 19 Gels 14/27/29 FL 8.4 CL- 6000 FC <2/ SOL 7 SD 0.33 OIL 1/92 MBT 17.5 pH 9.1 Ca-) 600 KCI MWD SUMMARY INTERVAL TO TOOLS No tools m hole GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA • CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C -1) @ @ CONNECTION GAS: HIGH NA ETHANE (C -2) @ @ AVG NA PROPANE (C -3) @ @ CURRENT 0 BUTANE (C -4) @ @ CURRENT: BACKGROUND/ AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS No new footage at this time INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY No new footage at this time PRESENT LITHOLOGY DAILY ACTIVITY Work casing to bottom. RIH w /dp. Circulate 13.375 csg annulus. Mix cement spacer a pillpit Cement and displace; cement in place at 11:30 am. Pull 25' up and circulate casing and dp SUMMARY clean. LD single and pump dp wiper balls. POH w /dp. CANRIG PERSONNEL ON BOARD (2) D. Acker / Z. Beekmen > DAILY COST 2427.00 REPORT BY Doug Acker 46 Cook Inlet Natural Gas 0 Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR Steve Ratchff DATE Oct 10, 2011 DEPTH 8619' PRESENT OPERATION Running 9 5/8" casing TIME 23:59 PM YESTERDAY 8619' 24 HOUR FOOTAGE 0 CASING INFORMATION 16" set to 2482' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 8577 73.14 246.03 4911.87 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 8619' MW 91 VIS 47 PV 13 YP 20 Gels 10/12/15 FL 5.4 CL- 19000 FC 1/ SOL 45 SD 0.5 OIL 4/92 MBT 13 pH 92 Ca+ 200 KCI MWD SUMMARY INTERVAL TO TOOLS No tools in the hole GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS N/A I 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 2 PENTANE (C -5) @ @ HYDROCARBON SHOWS No new footage drilled during the last 24 hours INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No new footage drilled during the last 24 hours DAILY ACTIVITY Pulled Wear bushing. Installed test plug to protect against tool drops. Changed out Rams to 9 5 /8 ". M/U casing Test Joint. Tested rams to 250/2500 psi. Changed out bails. Rigged up stabbing SUMMARY board and casing running tools. Installed casing circulating tool on top dove. Made gage run with 9 5/8" hanger. Picked up Baker locked shoe joint, made up baker locked float collar jt. Float Collar two its up from shoe. Ran 9 5/T 40# L80 Butt casing to r-/- 3,500'. Picked up baker locked DV joint. Continue to Run 9 5/8" to TD. CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) Sample catchers DAILY COST $2947.00 REPORT BY Doug Acker • Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CiJ\iRI REPORT FOR Steve Ratcliff DATE Oct 11, 2011 DEPTH 8619' PRESENT OPERATION Waiting on cement to set TIME 2359 PM YESTERDAY 8619' 24 HOUR FOOTAGE 0 CASING INFORMATION 16" set to 2482' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 8577' 73.14 246.03 4911 87' 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 MW 9.2 VIS 50 PV 13 YP 19 Gels 9/12/13 FL 5.8 CL- 18000 FC 1/ SOL 4.5 SD 0.5 OIL 4/92 MBT 14 pH 9.2 Ca+ 200 KCI MWD SUMMARY INTERVAL TO TOOLS No tools in the hole 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 0 BUTANE (C -4) @ @ CURRENT BACKGROUND/ AVG 0 PENTANE (C -5) @ @ ' HYDROCARBON SHOWS No new footage has been drilled in the last 24 hours INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No new footage has been drilled in the last 24 hours. DAILY ACTIVITY Ran casing to 8506'; Circulated bottoms up; ran casing /landed; circulate /condition ; primary cement; dumped 80 bbls cement/contaminated mud; second stage; dumped 35 bbls SUMMARY cement/contaminated mud; rig down cementers; N/U BOPE, wellhead; install pack off, rig down /clean floor. CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) Sample Catchers DAILY COST $2947.00 REPORT BY Doug Acker • Cook Inlet Natural Gas • Canery Loop / Sterling C DAILY WELLSITE REPORT 'A■1 CLU Storage 4 ciJJRIG REPORT FOR Steve Ratcliff DATE Oct 12, 2011 DEPTH 8619' PRESENT OPERATION Picking up BHA TIME 23:59 PM YESTERDAY 8619' 24 HOUR FOOTAGE 0 CASING INFORMATION 13.375" @ 2467' 9 625" @ 8608' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/TFA IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5" HCR503ZX 7114328 3 -14's / .8399 8619' 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 MW 9.3 VIS 54 PV 14 YP 16 Gels 8/13/14 FL 6.8 CL- 17000 FC 1/ SOL 4.5 SD 0.7 OIL 4/92 MBT 13 pH 11.9 Ca* 860 KCI MWD SUMMARY INTERVAL TO TOOLS Gamma / Resistivity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a III METHANE (C -1) @ 0 CONNECTION GAS: HIGH n/a ETHANE (C -2) @ 0 AVG n/a PROPANE (C -3) 0 0 CURRENT 0 BUTANE(C -4) 0 0 CURRENT: BACKGROUND/ AVG 0 PENTANE (C -5) 0 0 HYDROCARBON SHOWS No new footage has been drilled INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage has been drilled DAILY ACTIVITY Changed rams; picked up test tools, tested BOPS, LD test tools and pulled test plug. Blew down choke manifold and lines. Serviced top drive blocks and crown. Picked up BHA #4 SUMMARY steerable motor with triple combo and TIH. CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) Sample Catchers DAILY COST $2947.00 REPORT BY Doug Acker • Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CAI REPORT FOR Steve Ratcliff DATE Oct 13, 2011 DEPTH 8619' PRESENT OPERATION Drilling out of shoe and FIT TIME 23:59 PM YESTERDAY 8619' 24 HOUR FOOTAGE 0 CASING INFORMATION 13.375' @ 2467, 9.625 @ 9608' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 8652' 73.07 246.71 4933.00' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS /TFA IN OUT FOOTAGE HOURS T /B /C PULLED 9.1 45 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 8646' MW 9.1 VIS 45 PV 14 VP 16 Gels 7/13/14 FL 7 CL- 16000 FC 1/ SOL 4 SD 0.33 OIL 4/93 MBT 13 pH 11.4 Ca-r. 130 KCI MWD SUMMARY INTERVAL TO TOOLS MWD / LWD Triple Combo 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 0 BUTANE (C -4) @ @ CURRENT BACKGROUND/ AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS No new footage has lagged out as of midnight INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No new footage has lagged out as of midnight DAILY ACTIVITY MU BHA and RIH. RIH and drilled out DV plug; Circulate hole clean up cement contamination. Hit cement stringers at 3450' - 3750', Circulate through; RIH to 7170'; Circulate and clean. SUMMARY Continued TIH. Tagged cement at 8,524' Drilled float collar and new hole to 5,640'. Performed FIT with 9 3 PPG mud to 1605 PSI (15.5 ppg EMW). Continued drilling to 8646' MD CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen = (2) Sample Catchers DAILY COST $2947.00 REPORT BY Doug Acker i • Cook Inlet Natural Gas , • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR Steve Ratcliff DATE Oct 14, 2011 DEPTH 9478' PRESENT OPERATION Wiper Trip TIME 23:58 PM YESTERDAY 8619' 24 HOUR FOOTAGE 859 CASING INFORMATION 13.375 @ 2467', 9.625 @ 8608' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9228 85.05 249.30 5027.71 SURVEY DATA 9322 84.74 249.09 5036.07 9419 83.90 249.12 5045.67 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 "' HCR503ZX 7114328 3 -14'5 / 8399 8619' 859' 9.42 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 583.0 @ 9097.00' 2.9 @ 8747.00' 132.2 148.06 FT /HR SURFACE TORQUE 22417 @ 941800' 4 @ 8928.00' 14576.8 19618.62 AMPS WEIGHT ON BIT 29 @ 8778.00' 0 @ 9389.00' 11.4 1020 KLBS ROTARY RPM 129 @ 8619.00' 1 @ 9201.00' 54.3 79.00 RPM PUMP PRESSURE 2139 @ 9389.00' 1202 @ 8650.00' 1782.9 198422 PSI DRILLING MUD REPORT DEPTH MW - VIS - PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL 9478' TO 8619' TOOLS MWD / LWD Triple Combo GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 376 @ 9157.00' 0 @ 8763 00000 65.5 TRIP GAS n/a CUTTING GAS @ 0 @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C -1) 79002 @ 9156 00' 24 @ 8763.00000 12344 3 CONNECTION GAS HIGH n/a ETHANE (C -2) 86 @ 9156 00' 0 @ 8620.00000 9.2 AVG n/a PROPANE (C -3) @ @ CURRENT 1 BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY 60% Sand , 30% Tuffaceous Clay /Siltstone DAILY ACTIVITY Slide drilling and rotate drilling from 8646' to 9094', Slide drilling from 9094 to 9478'; back reaming tight spots from 9370' to 9355'; Circulate and condition, circulate B/U to clean hole. SUMMARY Trip out to work tight spots. Lost returns. TIH to 9281' CANRIG PERSONNEL ON BOARD (2) Acker / Winkelman + (2) Sample Catchers DAILY COST $2947.00 REPORT BY Doug Acker S Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR Steve Ratcliff DATE Oct 15, 2011 DEPTH 9478' PRESENT OPERATION Wiper Trip TIME 23:55 PM YESTERDAY 9478' 24 HOUR FOOTAGE 0 CASING INFORMATION 13.375 @ 2467', 9.625 @ 8608' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9419' 83.90 249.12 5045.67' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5" HCR503ZX 7114328 3- 14'5/.8399 8619' 859' 9.42 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 9478' MW 9.0 VIS 46 PV 12 YP 20 FL 6.6 Gels 5/10/11 CL- 14000 • FC 1/ SOL 5 SD 0.33 OIL 2/93 MBL 12 pH 10.3 Ca+ 400 CCI MWD SUMMARY INTERVAL 9478' TO 9478' TOOLS MWD / LWD Triple Combo GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS 54 CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C -1) @ @ CONNECTION GAS HIGH n/a ETHANE (C -2) @ @ AVG n/a PROPANE (C -3) @ @ CURRENT 18 BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling C PRESENT LITHOLOGY No new formation has been drilled in the last 24 hours DAILY Continued working pipe, washing, reaming to 9058' Dropped well commander ball, waited on ball to drop seat. ACTIVITY Circulated and conditioned. Pumped 85 bbls 9.2 ppg 100 ppb LCM pill, Regained circulation after opening Well SUMMARY Commander. Continued working pipe, back reaming out of hole to 8608' casing shoe. Closed well commander. Circulated and conditioned mud and hole. CANRIG PERSONNEL ON (2) Acker / Winkelman + (2) Sample DAILY $2947.00 • BOARD Catchers COST REPORT BY Doug Acker Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR Steve Ratciiff DATE Oct 16, 2011 DEPTH 9820' PRESENT OPERATION Drilling Ahead TIME 23:50 PM YESTERDAY 9478' 24 HOUR FOOTAGE 342' CASING INFORMATION 13.375" @ 2467', 9 625" @ 8608' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9419' 83.90 249.12 5045.67' SURVEY DATA 9514' 86.07 248.99 5053 98' 9609' 86.50 248.69 5060.13' ' BIT INFORMATION INTERVAL CONDITION REASON NO SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5" HCR503ZX 7114328 3- 14'5/.8399 8619' 1201' 14.00 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 314.1 @ 9587 00' 20.5 @ 9479 00' 137.6 54.19 FT /HR SURFACE TORQUE 19618 @ 9478.00' 291 @ 9496.00' 15887.7 17405.39 AMPS WEIGHT ON BIT 30 @ 9482.00' 0 @ 9538.00' 10.2 12 41 KLBS ROTARY RPM 79 @ 9478.00' 1 @ 9500.00' 70 3 77.00 RPM PUMP PRESSURE 2549 @ 9588.00' 1275 @ 9767.00' 2218.8 134545 PSI DRILLING MUD REPORT DEPTH - MW VIS - PV - - YP - FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL 9478' TO 9820' TOOLS MWD / LWD Triple Combo GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 89 @ 9521.00000 0 @ 9720.00000 41.1 TRIP GAS N/A • CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C -1) 53 @ 9521.00000 40 @ 9720 00000 10425.9 CONNECTION GAS HIGH 0 ETHANE (C -2) 28 @ 9518.00000 0 @ 9697.00000 6.4 AVG 0 PROPANE (C -3) @ @ CURRENT 27 BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @° HYDROCARBON SHOWS None INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling C PRESENT LITHOLOGY 60% Sand, 30% Tuffaceous Claystone, 10% Carbonaceous Shale / Coal DAILY ACTIVITY Service Top Drive; Trip in hole reaming and washing; Slide Drilling from 9478' to 9503', Rotary drilling from 9503' to 9764'. Lost returns, Circulate and Condition due to lost circulation, SUMMARY continue to working pipe at tight spot @ 9515' Drop Well Commander Ball. CANRIG PERSONNEL ON BOARD (2) Acker / Winkelman + (2) Sample Catchers DAILY COST $2947.00 REPORT BY Doug Acker a) , Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 :IIjRI REPORT FOR Steve Ratcliff DATE Oct 17, 2011 DEPTH 10500' PRESENT OPERATION Wiper Trip TIME 23:35 PM YESTERDAY 9820' 24 HOUR FOOTAGE 680' CASING INFORMATION 13.375" @ 2467', 9.625" @ 8608' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 10374 86.56 251 84 5105.50 SURVEY DATA 10441 87.02 251 83 5109.25 10500 87 02 251.83 5112.32 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5" HCR503ZX 7114328 3- 14's/.8399 8619 10500 1881 21.01 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 185.6 @ 10148.00' 12 9 @ 9894.00' 95.4 76.54 FT /HR SURFACE TORQUE 21338 @ 10383.00' 7 @ 9962.00' 17385.6 16640.71 AMPS WEIGHT ON BIT 21 @ 9881.00' 1 @ 10147.00' 7.5 10 67 KLBS ROTARY RPM 79 @ 10058 00' 1 @ 9966.00' 70.0 74.00 RPM PUMP PRESSURE 1471 @ 9975.00' 1111 @ 9955.00' 1314.2 1294.95 PSI DRILLING MUD REPORT DEPTH 10500' MW 91 VIS 45 PV 12 YP 19 FL 6.2 Gels 5/10/11 CL- 16000 FC 1/ SOL 4.5 SD 0.33 OIL 3'93 MBL 10 pH 9.2 Ca+ 200 CCI MWD SUMMARY INTERVAL 9820' TO 10500' TOOLS MWD / LWD Triple Combo GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 143 @ 10048.00' 10 @ 9879.00' 62.6 TRIP GAS N/A • CUTTING GAS @ @ WIPER GAS 52 CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C -1) 208 @ 10047.00' 1923 @ 9879.00' 14399.5 CONNECTION GAS HIGH 0 ETHANE (C -2) 59 @ 10458.00' 0 @ 9969 00' 15 8 AVG 0 PROPANE(C -3) 10 @ 10048.00' 0 @ 10014.00' 1.0 CURRENT 54 BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling C PRESENT LITHOLOGY 80% Sand, 20% Tuffaceous Claystone DAILY ACTIVITY Drilled to 10,242'; Short trip to 9768" by pumping at 350 gpm, 74RPM, torque 18k, well breathing fluid (taking when pumping then giving back when pumps are off). Slide and drill to 10500'. SUMMARY Back ream short trip to 10,424'. Circulate and condiSon, TIH to 10,500'. Back reamed to 9,190' packing off at 9,545' with well breathing loss up to 74 bbls, then back to 7 bbls. CANRIG PERSONNEL ON BOARD (2) Acker / Winkelman + (2) Sample Catchers DAILY COST $2947.00 REPORT BY Doug Acker ill Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR Steve Ratcliff DATE Oct 18, 2011 DEPTH 10500' PRESENT OPERATION Laying down BHA TIME 23:35 PM YESTERDAY 10500' 24 HOUR FOOTAGE 0 CASING INFORMATION 13.375" @ 2467', 9.625" @ 8608' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 10500' 87.02 251.84 5112.32' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 85" HCR503ZX 7114328 3- 14's/.8399 8619 10500 1881 2101 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 MW 9.2 VIS 48 PV 13 YP 19 FL 6 Gels 5/8/9 CL- 16000 FC 1/ SOL 5 SD 0.5 OIL 3/93 MBL 11 pH 92 Car- 160 CCI MWD SUMMARY INTERVAL TO TOOLS No Tools in the hole GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 126 CUTTING GAS @ @ WIPER GAS N/A • METHANE (C -1) @ CHROMATOGRAPHY (ppm) SURVEY N/A @ CONNECTION GAS HIGH 0 ETHANE (C -2) @ @ AVG 0 PROPANE (C -3) @ @ CURRENT 0 BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling C PRESENT LITHOLOGY DAILY ACTIVITY Back reamed from 9,100' to 8,608, no tight hole; Circulated bottoms up, TIH on elevator to bottom at 10,500' Back reamed from bottom to 8,608'; no hole problems. Circulate BU and SUMMARY TOOH. Laying down BHA CANRIG PERSONNEL ON BOARD (2) Acker / Foradas DAILY COST $2427.00 REPORT BY Doug Acker ill II Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 AfJRI REPORT FOR Steve Ratchff DATE Oct 19, 2011 DEPTH 10500' PRESENT OPERATION Running Casing TIME 23:35 PM YESTERDAY 10500' 24 HOUR FOOTAGE 0 CASING INFORMATION 13275" @ 2467', 9.625" @ 8608' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 10500' 87 02 251.84 5112.32' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5" HCR503ZX 7114328 3- 14's/.8399 8619 10500 1881 21.01 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 MW 9.2 VIS 48 PV 13 YP 19 FL 6 Gels 5/8/9 CL- 16000 FC 1/ SOL 5 SD 0.5 OIL 3/93 MBL 11 pH 92 Ca-f. 160 CCI MWD SUMMARY INTERVAL TO TOOLS No Tools in the hole GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ @ WIPER GAS N/A ill CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C -1) @ @ CONNECTION GAS HIGH 0 ETHANE (C -2) @ @ AVG 0 PROPANE (C -3) @ @ CURRENT 2 BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling C PRESENT LITHOLOGY DAILY ACTIVITY Lay down BHA, Drain Motor; break off bit; cased hole logs: PJSM R/U baker wire line and tools; PU test tools; pull wear ring; R/U test plug; Test BOP; LD test tools R/D test equip; Test JT and SUMMARY test plug; Pick up 3rd party tools P/U 10' PUP and Cement Rotary Head; R/U to run casing; PJSM with all involved; make up shoe track float ASSY. Fill Check FLO; Run Liner TIH w /7" liner to 2044'; Trip in hole w/ DP to 3127'; Fill every 10 STDS. CANRIG PERSONNEL ON BOARD (2) Acker / Foradas DAILY COST $2427.00 REPORT BY Doug Acker • Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT cIA 11R I 3 REPORT FOR John Nicholson DATE Oct 2, 2011 DEPTH 2482' PRESENT OPERATION Picking up BHA TIME 23:59 PM YESTERDAY 2482' 24 HOUR FOOTAGE 0 CASING INFORMATION 16" set @ 2482' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS /TFA IN OUT FOOTAGE HOURS T /B /C PULLED 1 16" VM1 5198929 3 -18'S, 16 CJ/.942 118' 2482 2364' 15.5 1- 1- WT- A- E- I -NO -TD Casing Point 2 2482 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 MW 8.8 VIS 80 PV 11 YP 23 Gels 9/12/15 FL 6 CL- 20350 FC 1/ SOL 5 SD 0 OIL /95 MBT 0.2 pH 8.5 Ca+ 160 KCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA • CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C -1) @ @ CONNECTION GAS. HIGH NA ETHANE (C -2) @ @ AVG NA PROPANE (C -3) @ @ CURRENT 0 BUTANE (C -4) @ @ CURRENT BACKGROUND/ AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage at this time DAILY ACTIVITY Finished cleaning mud pits, re[aired valve leak, transferred in; mix water, mix new volume; maintain pet 6 six with old mud for drill out; changed shaker screens to all 200 mesh; Test BOPE; SUMMARY set wear bushing, rig up /test casing string, make up drill pip to stand backing derrick; rig service ; R/U to pick up BHA. CANRIG PERSONNEL ON BOARD (2) D. Acker / Z. Beekmen > DAILY COST $2427.00 REPORT BY Doug Acker • 1 Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT CLU Storage 4 CANIRIG REPORT FOR Steve Ratchff DATE Oct 03, 2011 DEPTH 3650' PRESENT OPERATION Drilling ahead TIME 23:59 PM YESTERDAY 2482' 24 HOUR FOOTAGE 1168 CASING INFORMATION 16" set to 2482' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3153 61.48 239.31 2420.64 3248 61.49 239.24 2465.99 SURVEY DATA 3343 61.49 238 52 2511 34 3440 61.50 238.43 2557.63 3535 61.69 238 38 2602 82 BIT INFORMATION INTERVAL CONDITION REASON NO SIZE TYPE S/N JETS / TFA IN OUT FOOTAGE HOURS T /B /C PULLED 2 121/4" 0D505XX 7131957 8 -12's/ .8836 2482 1188' 6.00 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 403.7 @ 3636' 3.3 @ 2483' 215.9 339.78 FT /HR SURFACE TORQUE 11397 @ 3580' 3501 @ 2509' 6534.5 9215 78 FT -LBS WEIGHT ON BIT 40 @ 2482' 0 @ 3582' 5.1 3.85 KLBS ROTARY RPM 126 @ 2778' 70 @ 2500' 118.6 125.00 RPM PUMP PRESSURE 1530 @ 2482' 738 @ 2741' 964.3 978.57 PSI DRILLING MUD REPORT DEPTH 3671' MW 8.7 VIS 55 PV 10 YP 24 Gels 9/13/15 FL 6 CL- 20400 FC 1/ SOL 4 SD 0.2 OIL /96 MBT 0.3 pH 8.5 Ca+ 140 KCI MWD SUMMARY INTERVAL TO TOOLS On Trac, BCPM, Gamma, Resistivity, Density- Neutron III GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 10 @ 3650' 0 @ 2484' 4.9 TRIP GAS 0 CUTTING GAS 0 @ 3650' 0 @ 3650' 0 0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C -1) 2071 @ 3529' 78 @ 2484' 8904 CONNECTION GAS: HIGH 0 ETHANE (C -2) 0 @ 3650' 0 @ 3650' 0.0 AVG 0 PROPANE (C -3) 0 @ 3650' 0 @ 3650' 0.0 CURRENT 2 BUTANE (C-4) 0 @ 3650' 0 @ 3650' 0.0 CURRENT: BACKGROUND / AVG 0 PENTANE (C -5) 0 @ 3650' 0 @ 3650' 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY 90% Sand / 10% Tuffaceous Siltstone PRESENT LITHOLOGY DAILY ACTIVITY P/U BHA -test directional tools, P/U HWDP; wash /rotate into hole; tag fill/cement @2333'- 2414'; drill shoe and shoe track to 2502'; circulate /displace to new mud system, clean out around SUMMARY shakers, FIT @ 15.4 EMW; dnlling @3671' @ Report time; circulate bottoms up every 500' drilled. CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) Sample Catchers > DAILY COST $2947.00 REPORT BY al Cook Inlet Natural Gas • Cannery Loop /Sterling DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR Steve Ratcliff DATE Out 04, 2011 DEPTH 4860' PRESENT OPERATION Drilling Ahead TIME 23:59 PM YESTERDAY 3650' 24 HOUR FOOTAGE 1210 CASING INFORMATION 16" set to 2482 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4492 62.03 238.89 3053.89 4588 62.04 239.34 3098.91 SURVEY DATA 4687 61.82 239.30 3145.49 4781 61.88 240.00 3189.84 4877 61.89 239.73 3235.08 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS / TFA IN OUT FOOTAGE HOURS T /B /C PULLED 2 121/4 QD505XX 7131957 8 -12'S / 8836 2482' 2378' 13 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 343.8 @ 3786' 8.2 @ 4779' 208.9 19413 FT /HR SURFACE TORQUE 12792 @ 4588' 1853 @ 3677' 8909.3 8679.56 FT -LBS WEIGHT ON BIT 15 @ 4342' 0 @ 4398' 42 7.98 KLBS ROTARY RPM 141 @ 3746' 112 @ 3689' 138.5 139.00 RPM ■ PUMP PRESSURE 1300 @ 4781' 883 @ 3691' 1077.7 1222.20 PSI DRILLING MUD REPORT DEPTH MW 8.8 VIS 46 PV 9 YP 22 Gels 7/10/11 FL 6.2 CL- 18000 FC SOL 3 SD 0.5 OIL 3/95 MBT 1.5 pH 9.3 Ca+ 160 KCI MWD SUMMARY INTERVAL 3650' TO 4860' TOOLS On Trac, BCPM, Gamma, Resisivity, Density - Nuetron • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 92 @ 4585' 0 @ 3705' 33.9 TRIP GAS NA CUTTING GAS 0 @ 4860' 0 @ 4860' 0.0 WIPER GAS 28 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C -1) 18930 @ 4585' 33 @ 3705' 7038.9 CONNECTION GAS: HIGH 0 ETHANE (C -2) 0 @ 4860' 0 @ 4860' 0.0 AVG 0 PROPANE (C -3) 0 @ 4860' 0 @ 4860' 0.0 CURRENT 48 BUTANE (C -4) 0 @ 4860' 0 @ 4860' 0.0 CURRENT. BACKGROUND / AVG 0 PENTANE (C -5) 0 @ 4860' 0 @ 4860' 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY 50% Tuffaceous Claystone /Sftstone, 10% Coal, 40% Sand DAILY ACTIVITY Drilled to 4,631'; circulate hole clean; short trip to shoe; worked through some tight spots, serviced to rig; RIH -wash and ream tight spots 2873'- 3192'; RIH on to bottom, circulate system SUMMARY surface to surface; drilled ahead tp 4918' @midnight. CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) Sample Catchers > DAILY COST $2947.00 REPORT BY Doug Acker S Cook Inlet Natural Gas • Cannery Loop /StearlingC DAILY WELLSITE REPORT ', ,.. CLU Storage 4 CANRIG REPORT FOR Steve Ratcliff DATE Oct 05, 2011 DEPTH 6500' PRESENT OPERATION Drilling Ahead TIME 23:59 PM YESTERDAY 4860' 24 HOUR FOOTAGE 1640' CASING INFORMATION 16" set to 2482' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6121' 61.82 238.44 3819.57 6219' 61 86 238.36 3865.83 SURVEY DATA 6314' 61.96 238.37 3910.56 6409' 62.03 238.95 3955.16 6505' 61.99 238.86 4000.22 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T /B /C PULLED 2 121/4 QD505XX 71311957 8 -12's/ .8836 2482' 4122' 24 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 426.4 @ 5497' 3.9 @ 6130' 210.2 165.12 FT /HR SURFACE TORQUE 18866 @ 6493' 6668 @ 6464' 112617 15760.27 FT -LBS WEIGHT ON BIT 30 @ 5996' 0 @ 5493' 6.8 0.00 KLBS ROTARY RPM 144 @ 6069' 128 @ 6300' 139.1 140.00 RPM PUMP PRESSURE 1731 @ 6352' 1127 @ 4865' 1449.7 1664.45 PSI DRILLING MUD REPORT DEPTH MW 9.0 VIS 55 PV 14 YP 25 Gels 10/13/14 FL 6 CL- 19000 FC If SOL 4 SD 0.5 OIL 3/95 MBT 2 pH 9.5 Ca+ 16 -0 KCI MWD SUMMARY INTERVAL 4860' TO 6500' TOOLS On Trac, BCPM, Gamma, Resismty, Density- NUetron . GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 220 @ 5991' 0 @ 5454' 69.9 TRIP GAS NA CUTTING GAS 0 @ 6500' 0 @ 6500' 0.0 WIPER GAS 34 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C -1) 44902 @ 5991' 13 @ 5454' 14517.0 CONNECTION GAS: HIGH 0 ETHANE (C -2) 0 @ 6500' 0 @ 6500' 0 0 AVG 0 PROPANE (C -3) 0 @ 6500' 0 @ 6500' 0.0 CURRENT 92 BUTANE (C -4) 0 @ 6500' 0 @ 6500' 0.0 CURRENT: BACKGROUND/ AVG 0 PENTANE (C -5) 0 @ 6500' 0 @ 6500' 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY 50% Sand, 40% Tuffaceous Clay /Siltstone, 10% Coal DAILY ACTIVITY SUMMARY Drilling from 4918'- 6259'; circulate /condition, surface to surface; back ream to 4630'; ran in om elevators washing last stand down; drilling to 6565' at midnight. CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) Sample Catchers > DAILY COST $2947.00 REPORT BY Doug Acker Cook Inlet Natural Gas • Cannery Loop /SterlingC DAILY WELLSITE REPORT CLU Storage 4 : :J1RI G REPORT FOR Steve Ratcliff DATE Oct 06, 2011 DEPTH 7690' PRESENT OPERATION WIPER TRIP TIME 17:39.57 YESTERDAY 6500' 24 HOUR FOOTAGE 1190' CASING INFORMATION 16" set to 2482' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7173' 62.06 239.53 4343.92 7269' 62 01 239 33 4358.94 SURVEY DATA 7365' 62.03 239.78 4403 97 7461' 62.00 239.60 4449 02 7556' 62.00 239.73 4493.62 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS /TFA IN OUT FOOTAGE HOURS T /B /C PULLED 2 121/4 QD505XX 71311957 8 -12'S/ .8836 2482' 5208 34.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 392.2 @ 6862' 5 8 @ 6791' 157.9 172.68 FT /HR SURFACE TORQUE 21668 @ 6898' 8711 @ 6699' 15155 5 18249.53 FT -LBS WEIGHT ON BIT 35 @ 6783' 0 @ 7190' 8.5 1382 KLBS ROTARY RPM 147 @ 6898' 76 @ 6800' 142.6 143.00 RPM PUMP PRESSURE 1916 @ 6807' 989 @ 6794' 1715.7 1808.00 PSI DRILLING MUD REPORT DEPTH 7694 MW 9.1 VIS 51 PV 14 YP 26 Gels 13/18/20 FL 5.8 CL- 18000 FC 1/ SOL 4 SD 0.5 OIL 4/92 MBT 3 pH 9.3 Ca+ 140 KCI MWD SUMMARY INTERVAL 6500' TO 7690' TOOLS III GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 800 @ 7243' 13 @ 6756' 198.7 TRIP GAS NA CUTTING GAS 0 @ 7690' 0 @ 7690' 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C -1) 155597 @ 7244' 3221 @ 6756' 41190.5 CONNECTION GAS: HIGH 0 ETHANE (C -2) 0 @ 7690' 0 @ 7690' 0.0 AVG 0 PROPANE (C -3) 0 @ 7690' 0 @ 7690' 0.0 CURRENT 1 BUTANE (C -4) 0 @ 7690' 0 @ 7690' 0.0 CURRENT: BACKGROUND/ AVG 0 PENTANE (C -5) 0 @ 7690' 0 @ 7690' 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Sterling B PRESENT LITHOLOGY 100% Sand DAILY ACTIVITY Drilled @ 6565 -7215; pumped Nut Plug sweeps in attempt to clear bit of potential balling, Drilled @ 7215- 7694', circulate /condition - pumped sweep surface to surface; pump repairs; SUMMARY wash /ream short trip to 6153'; RIH at report time on elevators CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) Sample Catchers DAILY COST $2947.00 REPORT BY Doug Acker III Cook Inlet Natural Gas • Cannery Loop / Sterling C DAILY WELLSITE REPORT Cik\JRAG CLU Storage 4 REPORT FOR Steve Ratcliff DATE Oct 07, 2011 DEPTH 8619' PRESENT OPERATION POOH for casing TIME 23:59 PM YESTERDAY 7690' 24 HOUR FOOTAGE 929' CASING INFORMATION 16" set to 2482' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8226' 67.02 242.86 4799.31' 8322 69.84 244.04 4834.61' SURVEY DATA 8415' 72.88 244.94 4864.33' 8514' 72.94 245.64 4893.43' 8577' 73 14 246 03 4911.87' BIT INFORMATION INTERVAL CONDITION REASON NO SIZE TYPE S/N JETS /TFA IN OUT FOOTAGE HOURS T /B /C PULLED 2 12 1/2" QD505XX 71311957 8 -12'5 / .8836 2482' 8619' 6137' 45.16 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 241.1 @ 7794.00' 4.5 @ 8104.00' 107.2 15 24 FT /HR SURFACE TORQUE 22812 @ 8553.00' 14526 @ 7695.00' 20060.6 15332.48 FT -LBS WEIGHT ON BIT 20 @ 8612.00' 0 @ 8176.00' 6.9 0.00 KLBS ROTARY RPM 144 @ 7691.00' 80 @ 8608.00' 133.2 129.00 RPM PUMP PRESSURE 2191 @ 8501.00' 1538 @ 7736 00' 1859.6 208056 PSI DRILLING MUD REPORT DEPTH 8619' MW 9.2 VIS 54 PV 14 YP 30 Gels 12/16/18 FL 5.2 CL- 18000 FC If SOL 4.5 SD 0.5 OIL 4/92 MBT 8 pH 9.6 Ca* 200 KCI MWD SUMMARY INTERVAL 7690' TO 8619' TOOLS On Trac, BCPM, GAMMA, Resisivity, Density - Nuetron III GAS SUMMARY (units) HIGH 236 @ LOW 13 @ AVERAGE DITCH GAS 8569.00000 8420.00000 41.5 TRIP GAS NA CUTTING GAS 0 @ 8619.00000 0 @ 8619.00000 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C -1) 46845 @ 8569 00000 2711 @ 8420.00000 9707 9 CONNECTION GAS: HIGH 0 ETHANE (C -2) 0 @ 8619.00000 0 @ 8619.00000 0.0 AVG 41.5 PROPANE (C -3) 0 @ 8619 00000 0 @ 8619.00000 0.0 CURRENT 0 BUTANE(C -4) 0 @ 8619.00000 0 @ 8619.00000 0.0 CURRENT BACKGROUND/ AVG 0 PENTANE (C -5) 0 @ 8619.00000 0 @ 8619.00000 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Bottom of Sterling B PRESENT LITHOLOGY 50% Coal /50% Sand DAILY ACTIVITY RIH at 6642' -7598' on elevators; wash /ream to 7694'; Drilling a head to TD at 8619'; circulate and condition -pump bottoms up; hole clean; POOH back reaming at 8619' -7598" at SUMMARY midnight. CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) Sample catchers DAILY COST $2947.00 REPORT BY Doug Acker S Cook Inlet Natural Gas • Cannery Loop DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR Steve Ratcliff DATE Oct 08, 2011 DEPTH 8619' PRESENT OPERATION POOH for casing TIME 23:59 PM YESTERDAY 8619' 24 HOUR FOOTAGE 0 CASING INFORMATION 16" set to 2482' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T /B /C PULLED 2 12 1/2" QD505XX 71311957 8 -12's / .8836 2482' 8619' 6137' 45.16 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 8619' MW 9.1 VIS 50 PV 14 YP 20 Gels 10/14/16 FL 5.6 CL- 18000 FC 1/ SOL 4.5 SD 0.5 OIL 4/92 MBT 13 pH 9.1 Ca+ 18000 KCI 220 MWD SUMMARY INTERVAL 8619' TO 8619' • TOOLS None in the hole GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C -1) @ @ CONNECTION GAS: HIGH NA ETHANE (C -2) @ @ AVG NA PROPANE (C -3) @ @ CURRENT NA BUTANE (C -4) @ @ CURRENT: BACKGROUND/ AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Bottim of Sterling C PRESENT LITHOLOGY 50% sand / 50% coal DAILY ACTIVITY Tripped out at 7568' -6067' on elevators; worked tight spots; back reamed/wash and ream @6067' -2467' — casing show while standing SUMMARY back drill pipe; CBU at shoe; trip out on elecators laying down BHA; download MWD; service rig, top drive, blocks. CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) sample catchers DAILY COST $2947.00 REPORT BY Doug Acker S Cook Inlet Natural Gas • CanneruyLoop /SterlingC DAILY WELLSITE REPORT CLU Storage 4 CANRIG REPORT FOR Steve Ratcliff DATE Oct 09, 2011 DEPTH 8619' PRESENT OPERATION POOH for casing TIME 23:59 PM YESTERDAY 8619' 24 HOUR FOOTAGE 0 CASING INFORMATION 16" set to 2482" DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO SIZE TYPE S/N JETS /TFA IN OUT FOOTAGE HOURS T /B /C PULLED 2 12 1.2" QD505XX 71311957 8 -12's / 8836 2482' 8619' 6137' 45.16 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 8619' MW 9.1 VIS 47 PV 13 YP 20 Gels 10/12/15 FL 5.4 CL- 19000 FC 1/ SOL 45 SD 0.5 OIL 4/92 MBT 13 pH 92 Ca* 200 KCI MWD SUMMARY INTERVAL TO TOOLS None in the hole GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 111 CUTTING GAS @ @ WIPER GAS NA III CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C -1) @ @ CONNECTION GAS: HIGH NA ETHANE (C -2) @ @ AVG NA PROPANE (C -3) @ @ CURRENT 0 BUTANE (C -4) @ @ CURRENT BACKGROUND/ AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Not in the hole DAILY ACTIVITY Service Rig; P/U BHA #4- 12.25" clean out assembly; work on top drive; P/U BHA -RIH to TD; circulate and condition, pump sweep and lube pill; POOH to 2386'; low fuel caused generator SUMMARY to shut down; circulate /condition; POOH at report time. CANRIG PERSONNEL ON BOARD (2) Acker / Beekmen + (2) Sample catchers DAILY COST $2947.00 REPORT BY Doug Acker 410
