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Home My WebLink About100-488STATE OF ALASKA Ait OIL AND GAS CONSERVATION COM SSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Wel[Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑✓ Suspended[:] 20AAc 25.106 20AAc 25.110 GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions:_ OH 1b. Well Gass: Development ❑ Exploratory Q Service ❑ Stratigraphic Test ❑ 2. Operator Name: Naknek Electric Association Inc 5. Date Camp., Susp., or Abend.: 5/9/2013 12. Permit to Drill Number. AOGCC 100-488 ADNR DOG Geothermal Permit # 2215 3. Address: PO Box 118 Naknek, AK 99633 S. Date Spudded: 8/17/2009 • 13. API Number: 3/Z-3 50-185-20001-00-00 ; 4a. Location of Well (Governmental Section): Surface: 1076.5' FSL & 721' FWL Sec 14 -17s -44w Top of Productive Horizon: NA Total Depth: '02,1 -'o " ` 460' FSL 8826' FWL Sec 14 17s -44w 7. Date TD Reached: 3/18/2010 14. Well Name and Number: Naknek G#1 - 8. KB (ft above MSL): 290 GL (ft above MSL): 270 15. Fiekl/Pool(s): NA 9. Plug Back Depth(MD+TVD): abandoned 4b. Location of Wtil (State �,,Base Plane Coordin rs, N9q 27): / / ?qle „ ? Surfacer x- 7849 h✓i;.t3 y- 1719 r e�J Z e- 6 TPI: {;3 NA i,�� K9-.8 1_3 Total Depth: x- 7850. 4 y- 1719266.x59 Zane- 6 10. Total Depth (MD + TVD): '11387'MD /11348' TVD (STH) • 16. Property Designation: Private Ownership by NEA 11. SSSV Depth (MD + TVD): NA 17. Land Use Permit: Private Ownership by NEA 18. Directional Survey: Yes Q No ❑19. (Submit electronic and printed information per 20 AAC 25.050) weDepth, if Offshore: (ft MSL) 20. Thickness of Permafrost MD/TVD: NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): Baker FINAL COMP XMAC ZDL_WGI, COMP BHP, COMP Si, Collar marked COMP XMAC ZDL WGI 22.Re-drill/Lateral Top Window MD/TVD: 7568'/7585' 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 30 0.75 X95 0 120' 0 120' na na none 22 106.5 K55 BTC 0 397' 0 397' 26 689 sx 15.2 none 16 84 N80 BTC 0 2885' 0 2885' 20 1008sx 12.5 lead 994 sx 15.5 Tail none 11 3/4" 60 j L80 BTC 2560 7860' 2560 7860' 14 3/4" 1400sx 12.8 lead 445 sx 15.5 Tail none 7 5/8" 29.7 1 L80 STL 7317 10433' 7317 10393' 9 7/8" 300sx 12.8 lead 416 sx 15.5 Tai none 8 1/2 24. Open to production or injection? Yes ❑ No ❑✓ If Yes, list each interval open (MD+TVD of Top and Bottom; Perforation Size and Number): ^' P&A'd ` 25. TUBING RECORD SIZE DEPTH SET (MD) PACKER SET (MD/TVD) 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. Was hydraulic fracturing used during completion? Yes No DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: na Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24 -Hour Rate -1o. Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No Q • Sidewall Cores Acquired? Yes ❑ No Q . 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. SUNNED AUG 0 22013 RBDMS JUN - 5 2i11. Form 10-407 Revised 10/2012 CONTINUED ON REVERSE / 7S is '-17' Submit original only ;,'q � ' 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? [21 Yes ❑ 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 OH interval was jetted with air in an attempt to get the well to flow water. Operation was minimally successful. NO hydrocarbons. Unknown Formations kl..k 31. List of Attachments: 32. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Stephen F. Hennigan Email: shenni an ellnc.com Printed Name: Donna Vuukich Title: Generl Manager, Naknek Electric Association, Inc. Sianature: A 1 \/ Phone: (337) 849-5345 Date: 5/23/2013 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection, Water Injection, Water -Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 10/2012 • Naknek Electric Association 0 NEA # G-1 ST# 2 Block(Sec 14 -17s -44w Exploratory - Geothermal 5mi NE King Salmon AK Ser #.: AK DNR 2215 ' & ' 14 -17s -44w FMTN. TOPS/ PP DIR. (ppg MW FG or ppge) Comments/ EVALUATION CASING DEPTH MDn VD TCSG/ 1 �'-"-�—Install Original Valves CMT CASING & HOLE SIZE USDW:' Base of cellarAir d.4 AS X3. :>::::. ] Gap 7860'¢] [¢tom 113/4" 6 . f30bbls Prem cmt Wtr. Dpth 8.3 8.6 9.8 90' pen 120 [¢2 .75#X95 Welded Drive Sz» 30 [¢2 27�et] 5. Set CIBP @ 175' RKB 8.3 8.6 12.0 [¢2 water 06.5#K55 BTC 26 [02 2¢] 397' 8.4 10.6 17.9 10433' 2¢] $ 22 $ [¢'29.7#L80 STL 9 7/8" 10393' $ TOC 2509' 4. Wireline Tagged 8.3 11.0 12.0 $ 85':::.84#N80 BTC 20::::::: " 2 Set CIBP @2550' (TOL 16 8.4 0.0 a o 11387' $ $ One. Hole TD 8 1/2" tagged @2566') 11346' Est TOC Test 22"x 16" annulus to 100psi for 30 min (12.0 ppg emw) No 30" was present above the bottom of the cellar. **Est TOC at base of cellar (All cemented up.) Notes from Daily Reports when drilled. water Nipple down 30" riser and remove from sub base. Cut 30" and 22" casing from top of well at ground level. Observed good cement at top of 30" x 22" casing. Pre -heat 21-1/4" wellhead. Weld on wellhead to 22" casing. Run 2" line pipe down 16" x 22" annulus to 179'. Rig up cement line to pump truck. Mix and pump 40 bbls 15.5 ppg cement for top job. Observed full returns during displacement. CIP at 10:00 hrs. (4 hrs) TOC 7230' `'�2. Wireline Tagged -test to 2000psi for 30 min TOL 7317' above 1. RtnrBridge plug @ f 7277' Window (TOL tagged @ 7306'WLM) d.4 AS X3. :>::::. ] � I7'?3::260#L80 BTC 1439" 7860'¢] [¢tom 113/4" 2¢] [¢2 2¢1, water [¢2 20�L, [¢2 27�et] [eF 2 2`Y] [¢2 2¢] [02 2¢] [¢2 8.4 10.6 17.9 10433' 2¢] $ $ [¢'29.7#L80 STL 9 7/8" 10393' $ $ 7 5/8" $ 00 $ 8.4 0.0 a o 11387' $ $ One. Hole TD 8 1/2" 11346' 0 • Weekly Well Summary Naknek Electric Association Naknek-G #1 T17S, R44W, SM, Sec 14, E1/2SWi/4 & Sec 28, NE1/4NW1/4 - Geothermal Permit to Drill #2215 Week 1 Start up rig generator & #3 drawworks mtr, put air to drawworks, thaw airlines, 04/27/13 repair broken oil line on drawworks, hang bales & p/u 5" elevators. Nipple up 13 5/8" 2K by 10K DSA. Rigging up compound oiler pump & chain. R/u rig test pump Install exciter on #2 gen.- Finish hooking up rig pressure testing pump Fill 04/28/13 compound with oil - Lay wtr line f/ lake to rig for cmt wtr - Install new fuel transfer pump mtr. Work on compound. Trouble shoot compound & repair oiler pump chain again - Rebuild pipe 04/29/13 spinner - Demob wtr line from lake - Unload herc from Anc with tools for P&A Week 2 Unload truck with wireline unit risers & bridge plugs - Pollard & Baker (BJ) 04/30/13 crews arrive 11:00 AM - Set wireline unit - Nipple up 13 5/8 riser for lubricator - Having a hard time getting 12" tree valve to open (working on it) Put heat on valve all night. Change out 16" tree valve - finish n/u 13 5/8 lubricator to 3' above rig floor Rig 05/01/13 up greese head & RIH w/ 113/4 gauge ring, junk basket & gamma ray tool - Tag top of 113/4 liner @ 2666' & top of 7 5/8 @ 7306' (WLM) Run & set 113/4" pkr @ 7277' 05/02/13 Mix & dump 30' plus of cmt on top of bridge plug @ 7277'- CIP 16:45 Tag cement top @ 7230'- 47' above bridge plug - Test 16"csg & 113/4" liner to 05/03/13 2000 psi for 30 min. (good test) - Test 16" by 22" annulus to100 psi for 30 min. (good test) 05/04/13 RIH w/ 14.25 Gauge ring - tag top of liner at 2566'- Run & set 16" bridge Plug_ @ 2550'- Dump Bail 30' of cmt on top of bridge pluj CIP @ 18:30 05/05/13 Tag top of cmt above 2nd plug @ 2509' (41' of cmt) - Set top 16" bridge plug@ 175' KB - Cmt from bridge plug to surface - CIP 18:00 hrs 0 0 05/06/13 Tag top of cmt @ 120' KB (55' cmt on top of lu - Lay do 84 jts of 5" DP from derrick (50 stds left to lay dn) Week 3 05/07/13 Lay do 5" DP from derrick 05/08/13 Pour cmt into 16" csg from ready mix truck from 120'_to surface�,cmt in place @18:00 hrs. Take pictures. Check cmt, good to surface - Put on top of 16 3/4 3K flange a 16 3/4 3K by 13 05/09/13 5/8 2K cross over spool w/ 3" outlets & valves - On top a 12" valve w/ 13 5/8 2K flanges (As we found it) Abandonment completed - begin rigging down of rig Well is in condition to be reclaimed at a later date if desired. ly- NAKNEK ELECTRIC ASSOCIATION, INC. POST OFFICE BOX 118- NAKNEK, ALASKA 99633- PHONE j907I 246-4261 -FAX .90 246-624: Naknek-G #1 5 Miles NE of King Salmon, AK T17S, R44W, SM, Sec 14, E1/2SW1/4 & Sec 23, NEI/4NW1/4 Geothermal Permit to Drill #2215 Assigned AOGCC PTD 100-488 Sundry 312-316 COMPLETED Current Status: Exploratory geothermal well is currently ABANDONED and secured with a 12" (nominal) 2M Master Valve. WELL DATA: KB: 39.00' Well TD (Sidetrack hole, ST -2): 11387' MD/11346'TVD - Original Sidetrack was in open hole (ST -1) and was unsuccessful PBTD: NA Drive/Structural: 30" X95 Driven to 120' Conductor: 22" 106.5# K55 R-8 set in 26" hole @ 397'— cmt rtns to surface Surface Casing: 16" 84#, N-80, BTC, Set in 17 Y2" hole @ 2885'— top job successful Intm Casing: 11 3/4" 60#, L-80, BTC, Set in14 3/4" hole @ 7860' (top @2560') —Inr lap sqzd - good Liner Hanger — TIW set at 7317' above window from 7568'-7590' Liner: 7 5/8" 29.7#, L-80 STL Set in 9 7/8" hole @10433' (above fish from 10621'-10480'MD) Liner consists of Blank f/ 7317'-7651' and slotted f/7651'-10433'. OH TD Wellhead: 16" x 16 3/" 3M casing head - Cameron 16 3/" x 12" 2M spool 12" (Nominal) 2M Master Valve Objective: ABANDONED. Demobe rig and equipment. Comments: Directional Sidetrack geothermal hole in Township 17S, Range 44W, Section 14, Seward Meridian (N58'41'56", W1560 30'14"). AK PTD DNR 2215 — NO HYDROCARBONS 0 Brief History: 0 • NO HYDROCARBONS Correspondence from GeothermEx to Donna Vukich dated 05/30/11 (partial) including inserted notes by sfh. After acquiring its own drilling rig, NEA drilled an exploratory geothermal well (G-1) in 2009 and 2010. Although planned for a depth of 14,000 feet, this well was drilled initially to a total depth (TD) of 11,218 feet (the original hole or "OH") and later to 11,387 feet (the second side-track, or "ST2"). The OH was nearly vertical, while ST2 was slightly deviated (the surface projection of its bottomhole location is about 350 feet SSE of the wellhead location). The OH was completed (with 22" casing to 397' Good cement job. Observed cement returns to surface 16 -inch casing from the surface to 2,885 feet. Shoe test was 12.5 ppge and a Top Job, Mix and pump 40 bbis 15.5 ppg tail cement slurry. Below this is an 11 -3/4 -inch casing was run from 2,560 feet to 7,860 feet. Liner lap squeeze, after 200 bbls dispalced lost total returns. Displace drillpipe with 16 bbis, POH with drill string. Run 14-314" clean out assembly to liner top, test liner lap to 1,000 psi, OK. Shoe test was 10.6 ppg emw. Drilling proceeded and an 8 -5/8 -inch casing string from 7,668 to 9,912 feet. Below this depth, a 7 -1/2 - inch open hole was drilled. While drilling the OH at 11,218 feet, the 7 -1/2 -inch bit was damaged, and several of the bit's cutting heads ("cones") were lost in the hole. Attempts to fish out the cones were unsuccessful and the fishing operation became complicated due to the slim hole diameter and unstable hole conditions. An attempt was made to side-track the well out of the 8 -5/8 -inch casing and go around the zone where the fish was left, but this operation also became complicated and the sidetrack (ST 1) ended falling back into the original hole. Subsequently, in a second sidetrack operation, a window was deliberately cut in the 11-3/4 inch casing. This was successful, and the well was drilled to a depth of 11,387 feet. However, the rock formations in this hole were unstable and experienced some bridging (partial or complete blockages of the hole), probably because sloughing of the argillite units within the Cottonwood Bay Formation. This sloughing led to the drill string to become stuck on many occasions, but the driller was able to pull the string free. To enable the hole to remain open while drilling (i.e., to improve the stability of the wellbore walls), a heavy drilling mud with a significant quantity of barite was used. However, despite this, at some point the string became stuck and could not be freed; as a result, the bit and part of the bottomhole assembly were left in the hole. Fishing attempts were made, but were they were not successful. Therefore a "fish" was left in the well from 10,480 feet to 10,621 feet. At present, the effective TD of well G-1 ST2 is the depth of the top of the fish (10,480 feet). VA • • Due to the instability of the wellbore walls, it was clear that a slotted liner needed to be installed to preserve access to the well, as bridging would continue without installing a liner. The liner was successfully installed from 7,317 feet to 10,433 feet. Post -Completion Activities in Well G-1 Since completing G-1 ST2, NEA has air -lifted the well multiple times in an attempt to clean out the barite from the fractures using hydraulic (rather than chemical) methods. WELL SUMMARY for ABANDONMENT Attached Naknek Geothermal Project - Well NG -1 Final Completion 12" (Nominal), 2M Master Valve 16-3/4" 3M x 12". 2M S000l 16" SOW x 16-3/4", 3M Casing Head 30 -inch Conductor Pipe (X-95) driven to 120 ft — 22 -inch, 106.5 #/ft, K-55 - R-8 Casing Cemented inside 26 -inch hole @ 397 ft 16 -inch, 84 #/ft, N-80, Buttress Casing cern. inside 17 -1/2 -inch hole @ 2,885 ft 11-3/4 x 7 -5/8 -inch - TIW Liner Hanger set @ 7,317 ft Casing window milled between 7,568ft and 7,590 ft — 11 -3/4 -inch, 60 #/ft, L-80, Buttress Casing hung inside 11 -3/4 -inch casing @ 2,560 ft cern. inside 14 -3/4 -inch hole @ 7,860 ft, 8 -5/8 -inch, 40 #/ft, L-80, Buttress casing hung inside 11 -3/4 -inch casing at 7,668ft cent. inside 10 -5/8 -inch hole @ 9,912 ft Original 7 -1/2 -inch hole TD at 11,218ft GeothermEx, Inc. 2010 Remark: AOGCC Project: 7 June 2013 INPUT OUTPUT State Plane, NAD83 State Plane, NAD27 5006 -Alaska 6, U.S. Feet 5006 -Alaska 6, U.S. Feet Accuracies of conversions from NAD 83 to NAD 27 are typically 12 to 18 cm. Naknek G-1 Bottom Ho 1/1 Northing/Y: 1719005.82 Northing/Y: 1719302.883 Easting/X: 1925057 .23 Easting/X: 785051. 151 Convergence:1 16 43.80630 Scale Factor: 0.999992240 Convergence: 1 16 50.40395 Scale Factor: 0. 999992500 Grid Shift (U.S. ft.): X/Easting = -1140006.1, Y/Northing = 297.1 Datum Shift (m): Delta Lat. = 80.631, Delta Lon = -123.667 Corpscon v6.0.1, U.S. Army Corps of Engineers Remark: Convergence:1 16 42.19195 Scale Factor: 0. 999992163 Convergence: 1 16 48.79000 Scale Factor: 0.999992423 Grid Shift (U.S. ft.): X/Easting = -1140006.1, Y/Northing = 297.1 Datum Shift (m): Delta Lat. = 80.628, Delta Lon = -123.667 Corpscon v6.0.1, U.S. Army Corps of Engineers 0 AOGCC Project: 7 June 2013 INPUT OUTPUT State Plane, NAD83 State Plane, NAD27 5006 -Alaska 6, U.S. Feet 5006 -Alaska 6, U.S. Feet Accuracies of conversions from NAD 83 to NAD 27 are typically 12 to 18 cm. Naknek G-1 1/1 Northing/Y: 1719619.7 Northing/Y: 1719916.763 Easting/X: 1924938.6 Easting/X: 784932. 519 Remark: Convergence:1 16 42.19195 Scale Factor: 0. 999992163 Convergence: 1 16 48.79000 Scale Factor: 0.999992423 Grid Shift (U.S. ft.): X/Easting = -1140006.1, Y/Northing = 297.1 Datum Shift (m): Delta Lat. = 80.628, Delta Lon = -123.667 Corpscon v6.0.1, U.S. Army Corps of Engineers Actual Wellpath Geographic Report - including Position Uncertainty + NAD83 / TM Alaska SP, Zone 6 (5006), US feet - 25 -May -13 at 6:58:13 True Naknek ElecVic Association - 0.999992 Bristol Bay, Alaska Slot Geothermal DHS Rig #7 (RKB) Geothermal Pad • - - -•. DHS Rig #7 (RKB) G-1 Mean Sea Level G 1 - •- 2961Oft G-1 St #2 lJonethoh • 296.10 ft NaviTrak MWD -7760 - 11387'> 296.10 H 04/26/2010 • • E 0.00 ft G-1 at 7560.00 MD • • N 0.00 If Minimum curvature - included Magnetic North is 15.83 degrees East of True North •• =110,34° 296.10 ft 14 1 lu�-fanffi[QI44 lid 2.00 Std Dev • 0.00 0.00 1924938.64 171%19.67 58°41'56.466"N 156°30'14.186"W 2.00 1.00 1924936.64 171%19.67 58°41'56.466"N 156.30'14.186"W 20.00 3.00 1924938.92 171%20.11 58041'56.470"N 156°30'14.180"W Start MD 0.00 End MD 2748.00 Positional Uncertainty Photomechanical Magnetic (Standard) Model Log Ma Sin le Shot <0-2748'> Name I Comment G7 Wellbore 2748.00 7560.00 NaviTrak (MagCorr) NavTrak MWD -3003 - 7869> G-1 St #2 7560.00 17387.00 NaviTrak (MagCorr) NaviTrak MWD <7760 - 1138T> MnString I Diameter Conductor Start MD 0.00 End MD 120.00 Intenral 120.00 Start TVD _ 0.00 End TVD 120.00 Start NIS 0.00 Start EIVI End 0.00 NIS 0.09 End EIW 0.07 0.66 G-1 __ Wellbore 22in Casing Surtace 0.00 397.00 I 39200 0.00 397.00 0.00 0.00 0.00 0.88 254 -191 .16in Casin Intermediate 0.00 2885A0 2885.00 0.00 2884.99 0.00 -37.79 �#.2=E 11.75in Liner 2579.00 7560.00 4%1.00 78.99 7556.% 3.67 -116.35 -502.07 68.59 7.625in Liner 7317.00 10433.00 3116.00 7314.52 10400.01 -9961-3322 Target Name MD TVD North East Grid East Grid North Latitude Longitude Shap. Comment r NW Pro Bound Comer G-1 0.00 14000.00 1563.18 -720.48 1924183.47 7721166.37 58°42'11.864"N 156°30'27.- G-1 #2 T NAD83) 27Jan-10 0.00 142%.10 -1058.38 303.85 1925266.02 1718568.34 58°41'46.04 N 156°30'08 35"W int ` NAD 83 coordinates are converted to NAD 27 using Corpscon 6.0.1 (US Army Corps of Engineers) Major Minor Vert Minor Inclination 37.95 TVD from 0.00 -2%.10 0.00 0.00 1924938.64 171%19.67 784918.083 1719879.995 0.00 Toolface 37.95 Build Rate Turn 0.00 Rate 0.00 Vert Sect 0.00 Semi 0.00 Semi O.OD Semi 0.00 Azirn Comments 0.00 0.00 0.00 280.00 -16.10 0.48 0.36 7924939.00 171%20.16 784918.443 1719880.485 0.09 -136.80 0.09 0.00 -0.41 0.00 0.00 0.0.00 _ 280.00 0.25 37.95 1003.89 3.60 0.60 1924939.16 171%2328 784918.603 1719883.605 0.03 -149.51 0-00 -7.64 -3.45 40.82 40.63 6.271.52 7300.00 0.20 319.98 1299.99 3.18 1924936.64 1719622.80 784916.083 1714883.125 0.02 E635 0.00 -8.22 -3.45 41.38 41.12 7.221.88 _ 2748.00 020 200.95 2747.99 2451.89 -7.93 1924937.01 771%21.33 784916.453 1719881.655 0.16 75.17 0.13 -18.09 -1.93 41.36 41.10 7.213.35 _ 3003.00 0.53 154.82 3002.% 27%.88 1.69 -1.59 1924937.23 177%20.40 784916.673 7719880.725 0.30 141.57 0.14 25.80 -0.% 41.36 41.10 7.71421:3.22 3097.00 0.66 179.07 30%.% 2800.88 0.76 -1.39 1924937.13 171%19.49 784816.573 171%79.815 029 165.92 -0.19 21.82 -0.11 41.37 41.10 7.77 213.20 3190.00 0-48 199.36 3189.97 2893.87 -0.15 -7.51 1924936.91 177%19.07 784916.353 1719879.395 0.43 42.06 -0.37 52.46 0.26 41.37 41.11 7.84 213.20 3285.00 -" 0.13 249.20 3284.97 2988.87 -0.56 -0.60 -1.75 1924936.61 171%19.02 784916.053 5714879.345 0.12 -776.16 0.11 20.85 0.25 41.37 41.11 7.91 213.18 3380.00 023 269.01 3379-97 3083.87 -2.04 1924936.48 771%19.00 784915.923 1719879.325 0.31 -118.14 -0.17 -172.04 0.25 41.38 47.12 7.99 33.19 3475.00 0.07 105.57 3474.97 3178.87 -0.62 -2.17 7924936.54 171%19.19 784915.983 1719879.515 0.29 -135.41 0.19 -709.31 0.07 41.39 41.73 8.06 33.20 3570.00 025 1.73 3569.97 3273.87 -0.43 -2.11 1924935.% 171%19.46 784915.423 1719879.785 0.25 42.86 0.05 -55.72 -0.30 41.40 41.14 8.22 213.30 3759-00 0.35 256.42 3758.97 3462.87 -0.15 -2.66 1924934.55 171%19.33 784913.993 1719879.655 0.11 -74.16 0.10 8.56 -0.44 41-43 41.17 8.39 213.82 _ 3948.00 0.53 272.59 3947.% 3651.86 -0.25 -4.09 1924933.61 171%19.15 784913.053 1719879.475 0.27 -102.88 0.13 -23.67 -0.44 41.44 41.18 8.48 213.84 4043.00 0.65 250.10 4042.% 3746.% 1 -0.41 -5.04 1924932.01 t7t%17.76 784911.453 1719878.085 0.23 -18.53 0.03 -20.02 0.62 41.47 41.21 8.67 273.92 4233.00 0.70 212.07 4232.95 3936.85 -1.76 -6.67 1924931.36 171%16.54 784910.803 1719676.865 0.25 171.62 024 -4.64 1.69 41.49 41.23 8.77 213.% 4330.00 0.93 207.38 4329.94 4033.84 -2.% -7.34 1924930.06 171%13.91 784909.503 1719874.235 0.03 -65.23 -0.03 026 4.03 41.52 41.26 8.97 213.98 4516.00 0.88 207.86 4515.91 4219.81 -5.57 -8.71 1924929.43 171%12.58 784908.873 1719872.905 0.05 87.32 0.02 -2.77 522 41.55 41.28 9.08 213.% 4611.00 -_- 0.% 205.23 4610.% 4314.80 -0.89 -9.37 1924928.68 171%1129 784908.123 1718871.615 021 1.86 0.03 12.93 6.34 41.57 41.30 9.19 213.97 4705.00 0.93 217.38 4704.89 4408.79 -8.16 -10.14 1924927.73 1719609.98 784907.174 1719870.305 0.07 -115.00 0.07 0.14 7.44 41.59 47.32 9.30 213.97 4801.00 100 217.51 4800.88 4504.78 4695.75 - -9.44 -12.16 -11.13 -12.81 1924926.11 171%0722 784905.554 1719867.545 0.11 -141.90 -0.04 Fi.30 9.84 41.64 41.37 9.54 213.95 4%2.00 0.93 205.47 204.98 4991.85 5179.83 4883.73 -14.91 -14.10 1924924.87 171%04.45 784904.314 1719864.775 0.01 16621 -0.01 -0.26 12.33 41.69 41.43 9.78 213.88 213.87 5180.00 0.92 0.60 212.63 5273.82 4977.72 -16.01 -14.69 1924924.31 171%03.34 784903.754 1719863.664 0.36 -94.78 -0.34 8.14 13.32 41.72 41.46 9.91 10.04 213.86 5274.00 0.65 184.76 5368.81 5072.71 -16.96 -15.00 1924924.02 1719602.37 784903.464 1719862.694 0.32 -89.74 0.05 -29.34 14.21 41.75 41.49 10.33 213.65 5369.00 0.71 161.29 5574.80 5278.70 -19.34 -14.69 1924924.39 1719600.01 784903.834 1779860.335 0.14 53.55 0.03 -11.39 16.60 41.82 41.55 213.54 5575.00 1.02 180.79 5668.79 5372.69 -20.73 -14.51 1924924.59 1719598.63 784904.034 1719858.955 0.45 -12.37 0.33 20.74 18.00 41.85 41.58 10.47 10.61 213.45 5669.00 1.43 177.21 5763.77 5467.67 -22.76 -14.46 1924924.69 17195%.60 784904.134 171%56.925 0.44 -3.77 20.01 41.89 41.62 10.75 213.40 5764.00 5858.00 1.49 179.78 5857.74 5567.64 -25.15 -14.40 1924924.80 1719594.21 784904.244 1719854.535 0.09 2.73 22.36 41.92 41.65 41.69 1105 29 213.166047.00 5953.00 1.60 182.24 5952.70 5656.60 -27.71 -14.45 1924924.81 1719591.64 784904.254 1719851.965 0.14 2.59 24.89 41.% 42.00 47.73 1105 213.16614100 1.98 191.84 6046.65 5750.55 -30.61 -14.83 1924924.49 1719588.74 784903.934 1719849.065 0.51 W43.14O. 0 70.21 27.69 42.04 41.77 11.21212.99 2.32 192.82 6140.59 5844.49 -34.06 -15.59 1924923.81 1719585.28 784903.254 1719845.605 0.38 6 1.04 30.% 3429 42.08 41.81 11.36 212.87 6235.00 2-09 193.95 623452 593842 -3757-164324923%1779581.74 _-_2 784902.504 1719842.065 0.254 1.20 0.32 37.79 42.13 41.85 11.52. 212.73 of Page 2 of 2 2.60 197.88 6419.35 6123.25 -45.24 -18.50 1924921.16 1719574.03 784900.604 1719834.355 0.18 -54.11 0.02 3.99 41.49 42.17 41.89 11.68 212.59 6420.00 194.52 6513.25 6217.15 -49.43 -19.71 1924920.04 1719569.82 784899.484 1719830.144 0.21 81.84 0.13 -3.57 45.42 42.22 41.93 11.84 212.40 s 6514.00 2.72 199.95 6607.14 6311.04 -53.72 -21.04 1924918.80 1719565.49 784898.245 1719825.814 0.28 -56.86 0.05 5.78 49.43 42.27 41.98 12.01 212.19 6608,00 2.77 195.68 6701.02 6404.92 -58.16 -22.47 1924917.47 1719561.02 784896.915 1719821.344 028 -12.37 0.16 -4.54 53.57 42.32 42.03 12.18 211.97 6702.00 2.92 192.42 6795.85 6499.75 -63.69 -23.82 1924916.24 1719555.47 784895.685 1719815.794 1.10 11.88 1.08 3.43 58.79 42.37 42.08 12.36 211.77 i 6797.00 3.95 4.19 193.11 7086.12 6790.02 -83.83 -28.39 1924912.12 1719535.23 784891.565 1719745.554 0.08 101.30 0.08 0.24 77.88 42.56 42.24 i2.92 211.82 7088.00 198.60 7171.89 6875.79 -89.82 -30.09 1924910.56 1719529.20 784890.005 1719789.524 0.47 -99.99 -0.07 8.38 83.50 42.61 42.29 13.09 211.42 7174.00 4.13 193.74 7556.90 7260.80 -116.35 -37.79 1924903.45 1719502.51 784882.896 1719762.834 0.09 14.96 -0.01 -1.26 106.36 42.89 42.52 13.66 209.54 7560.00 4.08 8.52 201.61 7755.65 7459.55 -137.05 -44.94 1924896.77 1719481.65 784876.217 1719741.976 225 -55.90 2.22 3.94 127.57 42.98 42.67 14.31 206.46 7760.00 197.31 7846.57 7550.47 -150.26 49.59 1924892.41 1719468.35 784871.8 57 1719728.674 0.88 59.47 0.52 -4.67 139.81 43.02 42.76 14.52 202.33 78 52.00 9.00 10.10 184.32 794322 7647.12 -166.15 -52.52 1924889.84 1719452.40 784869.287 1719712.724 2.46 -109.79 1.12 -13.26 154.98 43.06 42.76 14.73 201.91 7950.00 174.53 8031.90 7735.80 -181.52 -52.39 1924890.31 1719437.02 784869.758 1719697.344 1.93 -106.98 -0.50 -10.88 170.16 43.11 42.77 14.93 200.95 8-40.00 9.65 9.23 159.12 8122.67 7826.57 -196.10 49.03 1924894.00 1719422.53 784873.448 1719682.854 2.78 36.32 -0.46 -16.75 485.09 43.15 42.78 15.14 198.39 8132.00 160.90 8216.38 7920.28 -210.73 43.71 1924899.64 1719408.02 784879.088 1719668.345 0.53 -144.42 0.43 1.87 200.41 43.19 42.80 15.36 195.38 8227.00 9.84 9.06 158.32 8309.13 8013.03 -225.06 -38.40 1924905.27 1719393.81 784864.718 7719654.135 0.74 -33.02 -0.60 -2.74 215.43 4323 42.81 15.58 193.72 8321.00 9.42 156.98 8402.89 8106.79 -239.18 32.59 1924911.40 1719379.82 784890.849 1719640.146 0.42 146.35 0.36 -1.41 230.33 4327 42.83 15.80 792.05 8416.00 159.77 8496.70 8200.60 -253.15 -27.04 1924917.26 1719365.98 784896.709 1719626.306 0.81 -154.16 -0.66 2.94 245.03 43.32 42.84 16.03 190.54 8511.00 8.79 157.60 8589.67 8293.57 -266.06 -22.01 7924922.57 1719353.19 784902.019 1719613.517 0.75 31.11 -0.67 -2.31 258.59 43.37 42.86 46.26 189.25 8605.00 8.16 16020 8681.65 8385.55 -278.87 -17.08 1924927.79 1719340.49 784907.239 1719600.817 0.83 176.89 0.72 2.80 272.06 43.42 42.87 16.49 167.99 8698.00 8.83 160.36 8776.57 8480.47 -292.41 -1222 1924932.94 1779327.06 784912.389 1719587.388 0.45 179.66 -0.45 0.17 286.22 43.48 42.89 16.73 186.77 8794.00 8.40 6869.61 8573.51 -304.99 -7.74 1924937.71 1719314.59 784917.18 1719574.918 0.50 -144.44 -0.50 0.02 299.37 43.53 42.91 76.97 185.72 8688.00 7.93 760.38 159.42 8962.73 8666.63 317.03 3.33 1924942.38 1719302.65 784921.83 1719562.978 024 164.02 -0.19 -1.02 311.98 43.59 42.93 17.21 184.76 8982.00 7.75 160.78 9057.92 8761.82 -328.74 0.91 1924946.88 1719291.04 784926.33 1719551.369 0.64 -153.11 A.61 1.42 32423 43.65 42.96 17.45 183.87 9078.00 7.16 158.95 9151.23 8855.13 -339.42 4.82 1924951.03 1719280.45 784930.48 1719510.779 0.51 -2.20 -0.45 -1.95 335.42 43.72 42.98 17.70 183.12 9172.00 6.74 158.46 9243.39 8947.29 351.02 9.35 1924955.82 1719268.95 784935.27 1719529.28 2.07 -172.43 2.06 -0.53 347.62 43.76 43.01 17.95 182.37 9265.00 8.66 9338.34 9042.24 364.14 14.58 1924961.34 1719255.95 784940.79 1714516.28 0.42 87.06 -0.42 -0.39 361.43 43.86 43.04 i824 181.72 9361.00 8.26 158.09 9135.26 377.01 18.88 1924965.92 1719243.17 784945.371 1719503.501 1.08 -144.67 0.12 7.29 374.84 43.94 43.07 18.48 180.95 9455.00 8.37 164.94 9431.36 9524.43 9228.33 -389.65 22.65 1924969.97 1719230.63 784949.427 1719490.961 0.81 -102.97 -0.65 -3.48 387.92 44.02 43.10 18.72 180.25 9549.00 7.76 161.67 9625.51 9329.41 402.53 27.29 1924974.90 1719217.85 781954.351 1719478.181 0.39 -165.44 -0.08 -2.86 401.47 44.11 43.13 79.00 179.52 9651.00 7.68 158.75 9716.70 9420.60 413.82 31.72 1924979.58 1719206.66 784954.031 1719486.882 024 39.52 -0.23 -0.46 413.28 44.19 43.16 1926 178.88 9743.00 7.47 158.33 9515.74 425.64 36.74 1924984.87 1719794.96 784964.321 1719455.292 0.58 -16.53 0.46 -2.70 425.78 44.28 43.19 19.53 178.23 9839.00 7.91 155.74 9811.84 9904.88 9608.78 437.77 42.34 1924990.74 1719182.96 784970.491 1719443.293 0.58 -144.35 0.55 -1.12 438.67 M.37 43.23 19.80 177.55 9933.00 8.43 154.69 9998.90 9702.60 450.05 48.36 1924997.02 1719170.82 784976.472 1719831.153 0.41 140.23 -0.33 -7.67 451.78 44.47 43.26 20.08 176.86 10028.00 8.12 153.10 10092.98 9796.88 461.90 54.15 1925003.08 1719159.10 784982.532 7719419.434 0.39 115.22 -029 1.82 464.43 44.57 43.3D 20.35 176.21 10123.00 7.84 154.83 9893.98 473.99 59.40 7925008.60 7779147.12 784988.052 1719407.454 0.51 55.67 -0.20 3.48 477.24 44.67 43.34 20.65 175.66 10221.00 7.64 15824 10190.08 10284.19 9988.09 -48622 63.75 1925013.22 1719135.00 784992.672 1719345.335 0.76 52.57 0.45 4.48 490.02 44.78 43.38 20.93 175.23 10316.00 8.07 162.50 40377.25 10061.15 498.91 67.64 1925017.39 1719122.39 784996.842 1718382.725 0.17 -11.10 0.11 0.97 503.19 44.89 43.42 21.21 174.86 10410.00 8.47 163.41 10470.24 10174.14 -512.08 71.65 1925021.69 1719109.32 785001.142 1719369.656 1 0.54 -151.86 0.53 -0.69 516.84 45.01 43.46 21.50 174.52 10604.00 8.67 162.76 10266.16 75.93 1925026.25 1719096.65 785005.703 1719356.986 0.84 -75.06 -0.73 -2.85 530.15 45.12 43.50 21.79 174.18 7-597 pp 7,99 160.11 10562.26 -524.85 80.60 1925031.20 1719084.35 785010.653 1719344.687 0.23 -128.68 0.06 -tb1 543.16 45.24 43.55 22.06 173.80 692. 10 00 8.05 158.58 10656.33 10747.47 10360.23 10451.37 -537.25 -548.73 85.61 1925036.47 4719073.00 785015.923 1719333.337 0.82 173.36 -0.49 4.86 555.31 45.36 43.59 22.37 173.40 10784.00 7.60 154.11 10546.55 -56 0.00 91.06 1925042.17 1719061.85 785021.623 1719322.187 0.22 152.28 -0.22 0.20 567.34 45.48 43.64 22.87 172.96 10880.00 7.39 154.30 10842.65 10938.01 10641.91 -570.23 95.20 1925046.54 1719051.71 785025.943 1719312.048 1.88 -715.26 -1.60 8.62 578.12 45.59 43.69 22.98 172.71 10976.00 5.85 162.58 10736.43 579.24 98.35 1925049.88 1719042.77 785029.333 1714303.108 0.42 61.13 -0.17 3.86 587.53 45.70 43.74 23.29 172.63 11071.00 5.69 158.91 171.93 11032.53 11128.97 10832.87 589.33 100.87 1925052.63 1719032.75 785032.031 1719293.088 7.77 22.91 1.03 13.42 597.90 45.82 43.79 23.61 172.46 11168.00 6.69 721 473.67 11221.28 10925.18 500.49 102.27 1925054.28 1719021.62 785033.734 1719281.959 0.60 -73.25 0.56 i.87 609.14 45.95 43.84 23.92 172.35 11261.00 11330.00 7.35 170.35 11289.73 10993.63 -609.14 103.49 1925055.69 1719012.99 785035.1/6 1719273.328 0.61 -72.88 020 4.81 617.87 46.04 43.88 24.15 24.34 172.33 172.29 Pro"ected Data - NO SURVEY 11387.00 7.45 768.00 11346.25 11050.15 516.35 104.87 192505723 1719005.82 785036.664 1719266.154 0.56 0.00 0.18 4.12 625.21 46.13 43.91 of Page 2 of 2 DATA SUBMITTAL COMPLIANCE REPORT 4/18/2013 Permit to Drill 1004880 Well Name/No. NAKNEK G-1 Operator NAKNEK ELECTRIC ASSOC INC API No. 50-185-20001-00-00 MD 10473 TVD 10433 Completion Date 9/15/2010 Completion Status GEOTH Current Status GEOTH UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey DATA INFORMATION Types Electric or Other Logs Run: MUD, DIR, COMPOSITE LOG (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OHI type mea►rrmt Numoer Name acme irieuia no wmn atop Uri Mecerveu wnnnenw Log Gamma Ray Spectro 5 Col 387 9905 Open Original well: final comp log, spectra ! Log (/ Caliper log 5 Col 387 9905 Open Original well: final comp log, hex tali log Log Sonic 5 Col 387 9905 Open Original well: final comp log, x -multi array acoust, comp z-densi, GR, TTRM sub EDLas 21992 Induction/Resistivity 251 9917 Open 9/13/2012 LAS OH data Plus PDF Graphics Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? Y /2) Daily History Received? / N Chips Received? Y7Ydv Formation Tops Y N Analysis T—rlq- ' Received? Comments: Compliance Reviewed By: Date: • • DATA SUBMITTAL COMPLIANCE REPORT 4/18/2013 Permit to Drill 1004880 Well Name/No. NAKNEK G-1 MD 10473 TVD 10433 Completion Date 9/15/2010 Operator NAKNEK ELECTRIC ASSOC INC Completion Status GEOTH Current Status GEOTH API No. 50-185-20001-00-00 UIC N • • VAe(G- C -( Pit /Oo-4gG Regg, James B (DOA) From: Stephen F. Hennigan [shennigan@peiinc.com] Sent: Wednesday, May 08, 2013 8:30 AM To: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Cc: Regg, James B (DOA) Subject: Cmt top for Naknek G-1 Sundry 312 316 Photos Attachments: photo 2.JPG; photo 3.JPG; photo 4.JPG For your preliminary review These photos will be in the final report Photo 2 Cement top Photo 3 distance from flange Photo 4 top shot w/ tape Thanks Stephen F. (Steve) Hennigan Project Manager/Engineer Petroleum Engineers Inc a Hamilton Company SCANT D MAY 31 2013 500 Dover Boulevard, Suite 310 1 Lafayette, LA 70503 Office: 337-984-2603 Cell: 337-849-5345 ---Original Message----- From: Larry Driskill[mailto•companyman(alallamericanoilfield.com] Sent: Wednesday, May 08, 2013 11:06 AM To: Pete Dickinson; Wagner Rod; Steve Hennigan Eng Subject: Cmt top 1 • Naknek G-1 (PTD 1004880) P&A Photos courtesy of Naknek Electric Association 5/8/2013 0 Cement top, Naknek G-1 Distance of cement top from flange Measuring cement top with tape 0 9 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Monday, February 11, 2013 2:24 PM To: 'Stephen F. Hennigan' Subject: RE: Idea for Naknek P&A F-T7D (on — `19S Page 1 of 2 FIC E Steve, I can approve this but you will need to request a variance for plug placement for the bottom cement plug (7277') as required by 20 AAC 25.112(C)(1)(d). . Are the depths referred to by GL or RKB? The well will be considered P & A 'd by AOGCC even though the wellhead is still in place. How are you picking up the drillpipe? What about just running a spaghetti string and leaving it in the well for the last surface plug and leaving out the very top plug (like a surface casing top job) ? Cement needs to be verified somehow that is almost to surface.... Suggest bailer / tag once it is set. You could also bring cement up to visual and take picture... then reattach master valve. Comments in red below. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Stephen F. Hennigan [mailto:shennigan@peiinc.com) Sent: Monday, February 11, 2013 1:10 PM To: Schwartz, Guy L (DOA) Subject: Idea for Naknek P&A Guy We could use a little help and advice please. When you can please review the following procedure and let us know any particular issues we need to address. Attached is a WBS too. if it seems feasible, we will have to run thru Naknek to modify the P&A sundry. So please let me know. General Procedure: 1. Notify regulatory agencies at least 24 hours prior to operations. All operations will comply with AOGCC regulations. All access will comply with NEA requirements as well. 2. Conduct pre -job safety meeting, perform JSA's, begin RU of equipment and establish RKB. Adjust all elevations to RKB indicated on wellbore diagrams unless noted otherwise in the daily reports. 3. Check all tubing and casing strings for pressure and record. 4. Conduct safety and operations meeting. Check all tubing and casing strings for pressure and record. Bleed off any pressure and monitor for build up. If pressure under 2m valve builds up, kill by bullheading or lubricate and bleed. 6. Conduct safety and operations meeting. 7. RU lubricator with 13 5/8" 5M riser and test to 2000 psi. 8. RIH w/ 11 W guage ring and junk basket. POOH. 2/13/2013 Page 2 of 2 9. RIH w/ 11 W retainer (to be used as a bridge plug) & set @ +-7277'. POOH/ 10. Perform multiple runs and dump bale >30' of cement on retainer (est TOC +- 7237'). 11. WOC while monitoring pressures then tag. Test to 2000 psi. (Chart / 30 min) 12. RD WL lubricator and riser. RD master valve. 13. RIH & set 16" CIBP @ +-2660'. 14. Dump 30' of cement on top. WOC. Tag. 15. RIH & set 16" CIBP @ +-175'. 16. PU drill pipe to 175'+-. Measure distance from rig floor to base of cellar. Spot a 150' cement plug YEW that depth rkb. (+-30 bbb) Base of plug should be 175'+-. Tag top of cement plug and visually document with photo to verify placement. 17. Set bridge plug on top of cement. Spot inhibited freeze protected water on plug. 18. Install dry hole tree with guage (or 12" master valve that was removed previously). T4ffk Project Manager/Engineer Petroleum Engineers Inc a Hamilton company 500 Dover Boulevard, Suite 310 1 Lafayette, LA 70503 Office: 337-984-2603 Cell: 337-849-5345 2/13/2013 • Naknek Electric Association 0 NEA # G-1 ST# 2 Block/Sec 14 -17s -44w Exploratory Q 5mi NE King Salmon Q AK Ser #.: AK DNR 2215 ' R ' 1A_17Q-ddw FMTN. TOPS/ PP MW FG Comments/ DIR. (ppg or ppge) EVALUATION CASING DEPTH MDrFVD TOC CSG/ CMT CASING & HOLE SIZE 0' reeze protect _ Air Gap USDW.' ........................................ 2¢j [¢i Base of cellar .............0 [¢� 11 3/4" 2¢] [¢2 Mr. Dpth 6 9.8 ................ 9U' pen 120 1175'-25' JS# X95 Welded Drive Sz >= .. 3 [¢2 201 [¢2 20] [¢2 10433' 2¢l $ e-6 12,0 39T nhibited water o6s5 BTC 26 " $ h $ 397' $ $ 48 $ 22 $ 11387' $ TOC ±2630" 11346' a_�r_ec 2885': - 844N80 BTC 20 " 12.0 12.0 85' 16 Est TOC CI _ f30bbLs Premlem 15.8 ppg cml Directional Info MD I Ane I ND 8.4 10.6 10.6 1 17.9 0.0 inhibited water TOC ±7237' E TOL 7317' above RtnrBridge plug @ t 7277' _ Window 7860' 2¢j [¢i 604 L80 RTC 14 3/4" 7860' ¢] [¢� 11 3/4" 2¢] [¢2 20] [¢2 2770 [¢2 20] [¢2 20] [¢2 201 [¢2 20] [¢2 10433' 2¢l $ $ [¢' 29.74 L80 STL 9 7/8" 10393' $ $ 7 5/8" $ fis $ $ h $ $ 10 $ $ 48 $ # Y- $ 11387' $ $ open Hole TD 8 1/2" 11346' THE STATE °fALASKA Donna Vukich GOVERNOR SEAN PARNELL General Manager Naknek Electric Association, Inc. P.O. Box 118 Naknek, AK 99633 Re: Geothermal Field, Geothermal Pool, Naknek G #1 Sundry Number: 313-120 Dear Ms. Vukich: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 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 request is a replacement for approved sundry 312-316. Naknek Electric Association, Inc. requests a waiver to 25.170(a)(1) and will leave wellhead intact instead of cut off below grade. Waiver to leave wellhead in place is granted. Additionally, a variance request to set a retainer above the slotted liner and place cement on top is approved per 20 AAC 25.112(1). Placement of the cement plug above the OH interval provides an equally effective method of plugging the well and will prevent migration of wellbore fluids. 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, Cathy . Foerster Chair DATED this i6 day of March, 2013. Encl. STATE OF ALASKA SA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.2 � .3✓*1 f-3 1. Type of Request: Abandon ❑s + 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. AOGCC 100-488 Naknek Electric Association Inc Development ❑ Exploratory ❑✓ # Stratigraphic ❑ Service ❑ ADNR DOG Geothermal Permit # 2215 3. Address: 6. API Number: PO Box 118 Naknek, AK 99633 50-185-20001-00-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number- umberproperty propertyline where ownership or landownership changes: ❑ Q Naknek G#1 Spacing Exception Required? Yes No 9. Property Designation (Lease Number): 10. Field/Pool(s): Private Ownership by NEA • I NA 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): . 11387' 11346' 10433' 10393' SEE Schematic 10480'-621' Casing Length Size MD TVD Burst Collapse Structural 120' 30 120' 120' na na Conductor 397' 22 397' 397' 2370 874 Surface 2885' 16 2885' 2885' 4330 1480 Intermediate 5300' 113/4" 7860' 7860' 5830 3180 Production 3116' 7 5/8" 10433' 10393' 6890 4790 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): na - OH Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Description Summary of Proposal Q 13. Well Class after proposed work: Detailed Operations Program ❑� BOP Sketch Exploratory ❑✓ - Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 03/14/13 Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ WINJ ❑ GINJ ❑ WAG ❑ Abandoned El - 16. Verbal Approval: Date: Commission Representative: GSTOR ❑ SPLUG ❑ 17. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stephen Hennigan - (337) 849-5345 shenni an eiinc. Printed Name Donna Vukich Title General Manager, Nakenek Electric Association, Inc Signature Phone (907) 246-4261 Date ' , 1 02/14/13 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 ` Plug Integrity 10 BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: nc, kBbMS MAR 18 Zd Subsequent Form Required: Ll C)7 APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: 3 Submit'n Duplicate (ATUT'N'ser[AL 20113 t`tt 1RR •is1�„ { " 'BOG ".!" C y✓ a �TTT/777 NAKNEK ELECTRIC ASSOCIATION, INC. POST OFFICE BOX 118 • NAKNEK. ALASKA 99633 • PHONE 907) 246-4261 • FAX � 90', 246-624 2 February 14, 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Request for Revision of Sundry No. 312-316 To Suspend (T&A) Well Naknek-G #1 5 Miles NE of King Salmon, AK T17S, R44W, SM, Sec 14, E1/2SW1/4 & Sec 23, NEI/4NWI/4 - Geothermal Permit to Drill #2215 Dear Ms. Foerster: Naknek Electric Association, Inc. ("NEA") requests approval of the attached Revised Sundry 10-403 to suspend operations (T&A) for the Naknek-G #1geothermal water well which was originally permitted by the Amended Geothermal Permit to Drill #2215. The well history is supplied in the attached procedure. Well is presently full of formation water and static with no pressure. A new development is that the tree on the well is a 12" 2m master valve. Proposed revised plan includes setting a bridge plug* above the lowest liner top and dumping 3o' of cement on top and testing to 1900 psi. Following that, a bridge plug will be set above the next liner top and 30' of cement dumped. Near surface, a bridge plug will be st at ± 175' and a 150' cement plug will be set on top. All casing annuli will be tested to 12.0 ppg emw and squeezed if necessary. *At the noted step above a variance from 20 AAC 25.112(C)(1)(d) is requested from „ circulating cement under a retainer to secure open perfs. The well has been static for over a year with no pressure build up or flow and logs indicate that there is no hydrocarbon. If you require any additional information or clarification, please contact Donna Vukich at (907) 246-4261 or Stephen Hennigan, at (337) 849-5345 at your earliest convenience. Sincerely, Donna Vukich General Manager Attachments: U 10-403 and back up Cc: Pete Dickinson — All American Stephen Hennigan — Petroleum Engineers, Inc for All American To: TBD DATE: JULY 30, 2012 NAKNEK ALL-AMERICAN OILFIELD RVSP 8/13/2012, RVSF GEOTHERMAL 02/11/2013 PROJECT FROM: STEVE HENNIGAN SUBJECT: G-1 CONSULTING ENGINEER SECURE WELL 8L PETROLEUM ENGINEERS, INC. BEHALF OF ALL-AMERICANOILFIELD SUSPEND Current Status: Exploratory geothermal well is currently shut-in and secured with a 12" (nominal) 2M Master Valve. Wellbore is filled with formation water. WELL DATA: KB: 39.00' Well TD (Sidetrack hole, ST -2): 11387' MD/11346'TVD Original Sidetrack was in open hole (ST -1) and was unsuccessful PBTD: NA Drive/Structural: 30" X95 Driven to 120' Conductor: 22" 106.5# K55 R-8 set in 26" hole @ 397'— cmt rtns to surface Surface Casing: 16" 84#, N-80, BTC, Set in 17 Y2" hole @ 2885'— top job successful Intm Casing: 11 3/4" 60#, L-80, BTC, Set in14 3/4" hole @ 7860' (top @2560') —Inr lap sqzd - good Liner Hanger — TIW set at 7317' above window from 7568'-7590' Liner: 7 5/8" 29.7#, L-80 STL Set in 9 7/8" hole @10433' (above fish from 10621'-10480'MD) Liner consists of Blank f/ 7317'-7651' and slotted f/7651'-10433'. OH TD Wellhead: 16" x 16 %" 3M casing head - Cameron 16 %" x 12" 2M spool 12" (Nominal) 2M Master Valve Objective: Re-enter and set cement plugs to suspend. Demobe rig and equipment. Comments: Directional Sidetrack geothermal hole in Township 17S, Range 44W, Section 14, Seward Meridian (N580 41'56", W1560 30'14"). AK PTD DNR 2215 — NO HYDROCARBONS I Brief History: NO HYDROCARBONS Correspondence from GeothermEx to Donna Vukich dated 05/30/11 (partial) including inserted notes by sfh. After acquiring its own drilling rig, NEA drilled an exploratory geothermal well (G-1) in 2009 and 2010. Although planned for a depth of 14,000 feet, this well was drilled initially to a total depth (TD) of 11,218 feet (the original hole or "OH") and later to 11,387 feet (the second side-track, or "ST2"). The OH was nearly vertical, while ST2 was slightly deviated (the surface projection of its bottomhole location is about 350 feet SSE of the wellhead location). The OH was completed (with 22" casing to 397' Good cement job. Observed cement returns to surface. 16 -inch casing from the surface to 2,885 feet. Shoe test was 12.5 ppge and a Top Job, Mix and pump 40 bbis 15.5 ppg tail cement slurry. Below this is an 11 -3/4 -inch casing was run from 2,560 feet to 7,860 feet. Liner lap squeeze, after 200 bbis dispalced lost total returns. Displace drillpipe with 16 bbls, POH with drill string. Run 14-314" ciea n out assembly to liner top, test liner lap to 1, 000 psi, OK. Shoe test was 10.6 ppg emw. Drilling proceeded and an 8 -5/8 -inch casing string from 7,668 to 9,912 feet. Below this depth, a 7 -1/2 -inch open hole was drilled. While drilling the OH at 11,218 feet, the 7 -1/2 -inch bit was damaged, and several of the bit's cutting heads ("cones") were lost in the hole. Attempts to fish out the cones were unsuccessful and the fishing operation became complicated due to the slim hole diameter and unstable hole conditions. An attempt was made to side-track the well out of the 8 -5/8 -inch casing and go around the zone where the fish was left, but this operation also became complicated and the sidetrack (ST 1) ended falling back into the original hole. Subsequently, in a second sidetrack operation, a window was deliberately cut in the 11-3/4 inch casing. This was successful, and the well was drilled to a depth of 11,387 feet. However, the rock formations in this hole were unstable and experienced some bridging (partial or complete blockages of the hole), probably because sloughing of the argillite units within the Cottonwood Bay Formation. This sloughing led to the drill string to become stuck on many occasions, but the driller was able to pull the string free. To enable the hole to remain open while drilling (i.e., to improve the stability of the wellbore walls), a heavy drilling mud with a significant quantity of barite was used. However, despite this, at some point the string became stuck and could not be freed; as a result, the bit and part of the bottomhole assembly were left in the hole. Fishing attempts were made, but were they were not successful. Therefore a "fish" was left in the well from 10,480 feet to 10,621 feet. At present, the effective TD of well G-1 ST2 is the depth of the top of the fish (10,480 feet). Due to the instability of the wellbore walls, it was clear that a slotted liner needed to be installed to preserve access to the well, as bridging would continue without installing a liner. The liner was successfully installed from 7,317 feet to 10,433 feet. F, Post -Completion Activities in Well G-1 Since completing G-1 ST2, NEA has air -lifted the well multiple times in an attempt to clean out the barite from the fractures using hydraulic (rather than chemical) methods. Services: Drilling Rig (if needed) Naknek Rig Management (if needed) All American Oilfield Cementing Baker Mud/fluids Baker Wire line Unit Pollard/Baker Slick Line Pollard Wellhead/Tree ??? Transportation ??? Misc rentals ???? Housing ???? Supervision All American Oilfield NOTE: All vendors are to have a current MSA in place. • Pre service work Procedure: 1. Review with all vendors and be sure logistics are predetermined. 2. Perform a complete inventory of products, tools, etc 3. Be sure permits are applied for and in place. 4. Master valve and wellhead were installed in 2009-11. Review details. 5. Inspect all components. If necessary, reinstall valves, gauges, etc. 6. Review and record all pressures. Inspect casings in cellar and insure ALL annuli are cemented. Records indicate they are. (May need to rig up test pump and test). If no test, then cement must be pumped until each annulus tests to 12.0 ppg emw.) 7. Prep for well work. L- ' P �or 8. Prep to use MINIMAL mud/water volume. General Procedure: 1. Notify regulatory agencies at least 24 hours prior to operations. All operations will comply with AOGCC regulations (20 AAC 25.112. Well plugging requirements). All access will comply with NEA requirements as well. 2. Conduct pre job safety meeting, perform JSA's, begin RU of equipment and establish RKB. Adiust all elevations to RKB indicated on wellbore diagrams unless noted otherwise in the daily reports. 3. Check all tubing and casing strings for pressure and record. 4. Conduct safety and operations meeting. 5. Check all tubing and casing strings for pressure and record. Bleed off any pressure and monitor for build up. If pressure under 2m valve builds up, kill by bullheading or lubricate and bleed. 6. Conduct safety and operations meeting. 7. RU lubricator with 13 5/8" 5M riser and test to 1900 psi. 8. RIH with sample bailer to below 7800'. Obtain 3 samples (at least 200mils EACH). Deliver to ALL AMERICAN office. 9. RIH w/ 11 %11 guage ring and junk basket. POOH. NOTE: Variance is requested from 20 AAC 25.112(C)(1)(d) — "by the downsqueeze method using a cement retainer or production packer set no less than 50 feet but no more than 500 feet above the perforated interval, a volume of cement pumped through the retainer or packer sufficient to fill the wellbore from 100 feet below the base of the perforated interval to the retainer or packer;" I*- 10. RIH w/ 11 3/4" retainer to be used as a bridge plug) & set @ +-7277'. POOH/ 11. Perform multiple runs and dump bail >30' of cement on retainer (est TOC +- 7237'). • 12. WOC while monitoring pressures then tag. Test to 2000 psi ori chart for 30 min). 13. RD WL lubricator and riser. RD master valve. VK �� • iJ 14. RIH & set 16" CIBP @ +-2660'. 15. Dump 30' of cement on top. WOC. Tag. 16. RIH & set 16" CIBP @ +-175'. 17. PU pipe to 175'+-. Measure distance from rig floor to base of cellar. Spot a 150' cement plug r&to that depth rkb. (+-30 bbls) Base of plug should be 175'+-. (May use top out string or drill pipe.) y 18. Tag top of plug and visually document with photo to verify placement. 7k' ' 19. Set brid nlug on o of ., Spot inhibited freeze protected water on plug. NU 20. Install dry hole tree with guage (or 12" master valve that was removed previously). 21. Prep rig for demobe. 22. Clean and secure location access. NOTE: Any future work with regard to re-entering this suspended well will require a 10-401 or a 10- 403 depending on work to be done. 5 Naknek Electric Association 0 NEA # G-1 ST# 2 Block/Sec 14 -17s -44w Exploratory 0 5mi NE King Salmon 0 AK Ser #.: AK DNR 2215 ' & ' 14 -17s -44w FMTN. TOPS/ PI, DIR. (ppg MW or FG Comments/ ppge) EVALUATION CASING DEPTH MDrFVD 20] TOC CSG/ CMT CASING & HOLE SIZE USDW 20] 30'ze Fee protect 20] [02 Air Gap 20] [¢2 Base of cellar ................ 0. [02 ........................................ 20] Mr. Dpth 8.3 8.6 9.8 .......... 90'pen ---------------------- .75#X95 Welded Drive Sz >, 30 &3 8.6 12.0 397' nhibi ed water 06.5#K55 BTC 26 397' 11387' 22 11346' TOC ±2630" 8.3 110 12.0 2885'.... :::"84#N80 ETC 20 85, 16 Est TOC Cl +30bM Premiem, 15.8 ppg emt Directional Info NID I An,! I TVD 94 10.6 10.6 8.4 10,6 17.9 8.4 0.0 0.0 inhibited water TOC ±7237' TOL 7317' above Rtrir/Bridge plug @ t 7277' Window 7860' W60#L80 BTC 14 3/4" 7860' .4t1 V" 113/4" 20] [02 20] [02 20] [02 20] [02 20] [02 20] [¢2 20] [02 10433' 20] [¢:29.7#L80 STL 9 7/8" 10393' 7 5/8" 11387' OP. Mole TD 8 1/2" 11346' -ti ti fir � r ,., _ YA, MEMO PETROLEUM ENGINEERS, INC. A Hamilton Company www.hamiltongroup.org Lafavette 500 Dover Blvd., Ste. 310 337.984.2603 Main 777 Post Oak Blvd., Ste. 400 Lafayette, LA 70503 337.984.0854 Fax Houston, TX 77056 Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) 333 West 7`" Avenue, Suite 100 Anchorage, Alaska 99501 Phone:: 907-793-1224 AOGCC's receptionist: 907-793-1223 TO: FROM: Stephen Hennigan for Naknek DATE: September 12, 2012 SUBJECT: Naknek ENCLOSED IS THE CD AND THUMB DRIVE WITH BAKER LOGS STEVE LET ME KNOW BY EMAIL IF THESE WORK PLEASE - I AM WORKING ON GETTING THE OTHERS. APPRECIATE YOUR HELP STEPHEN F_{STEVE9)_HENNIGAN- Houston 713.975.1971 Main 713.975.6271 Fax RECEIVED SEP 13 :.J.:. AOGCC 1 oo —ned- • OT ALASKA SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Donna Vukich General Manager Naknek Electric Association, Inc. P.O. Box 118 i Naknek, AK 99633 Re: Exploratory Field, Exploratory Pool, Naknek G# 1 Sundry Number: 312-316 Dear Ms. Vukich: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note, this approval is authorization to plug and abandon the well in accordance with all applicable regulations as set forth in 20 AAC 25, Arcticle 2 (Abandonment and Plugging). The only exception being that the AOGCC will waive the requirement that the wellhead be removed and marker plate installed as stated in section 20 AAC 25.170(a)(1) (Onshore Location Clearance) . 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 3 day of August, 2012. Encl. STATE OF ALASKA 41'1 ALASKA OIL AND GAS CONSERVATION COMMISSION %(sAPPLICATION FOR SUNDRY APPROVALS I'ZN %- 20 AAC 25280 AUG 2 0 2012 WEM 1. Type of Request: Abandon Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspene ; " Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown Re-enter Susp. Well ❑ Stimulate ❑ After Casing ❑ Other. ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: 1�� Naknek Electric Association Inc Development ❑ Exploratory Q . Stratigraphic ❑ Service ❑ ADNR DOG Geothermal Permit # 2215 3. Address: 6. API Number /-� g zp- PO Box 118 Naknek, AK 99633 50-/gS ZG 'ems (- e7 j— G 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 El No � Naknek G#1 9. Property Designation (Lease Number): 10. Field/Pool(s): Private Ownership by NEA NA 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): 1 Plugs (measured): Junk (measured): 11387' 11346' 10433' 10393' SEE Schematic 10480'-621' Casing Length Size MD TVD Burst Collapse Structural 120' 30 120' 120' na na Conductor 397' 22 397' 397' 2370 874 Surface 2885' 16 2885' 2885' 4330 1480 Intermediate 5300' 113/4" 7860' 7860' 5830 3180 Production 3116' 7 5/8" 10433' 10393' 6890 4790 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): na - OH Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Description Summary of Proposal 0 13. Well Class after proposed work: Detailed Operations Program ❑r BOP Sketch �. 2k Exploratory ❑� - Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 09/17/12 Oil ❑ Gas ❑ WDSPL ❑ Suspended (� WINJ ❑ GINJ ❑ WAG ❑ Abandoned QJ 16. Verbal Approval: Date: Commission Representative: GSTOR ❑ SPLUG ❑ 17. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Donna Vukich Title General Manager, Nakenek Electric Association, Inc Signature Phone (907) 246-4261 Date 08/14/12 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness SundryNumber: 12.31 Plug Integrity BOP Test 2Mechanical Integrity Test ❑ Location Clearance ❑ Other: y4[ `T 4e.)b (/0 / S r ft_ OA ftaj&.j SL4.r u- S�ie l�rls o` p��o / zo Subsequent Form Required: /b L0 7 ' APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: `�""fia4L6,3do20� Q J.Ly rL ORIGINAL 0��- it in Duplicate .2- . I,— • NAKNEK ELECTRIC ASSOCIATION, INC. POST OFFICE BOX 118 • NAKNEK. ALASKA 99633 • PHONE f9O7i 246-4261 • FAX r907) 246-6242 4' _") August 14, 2012 Ms. Cathy Foerster, Chair RECEIVED Alaska Oil and Gas Conservation Commission 333 West 71h Avenue, Suite 100 AUG 2 0 2012 Anchorage, AK 99501 RE: Request for Suspension of Well Naknek-G #1 0�� 5 Miles NE of King Salmon, AK T17S, R44W, SM, Sec 14, E1/2SW1/4 & Sec 23, NE1/4NW1/4 - Geothermal Permit to Drill #2215 Dear Ms. Foerster: 7 Naknek Electric Association, Inc. ("NEA") requests approval of the attached Sundry 10-403 to suspend ' operations on the Naknek-G # lgeothermal water well which was originally permitted by them� den ed Geothermal Permit to Drill #2215. The well history is supplied in the attached procedure. Well is presently full of formation water and static with no pressure. Plans include restarting the rig, setting a retainer above the lowest liner top, and squeezing the open hole full of cement. Following that, a CIBP will be set below the next liner top and a 200' balanced cement plug will be set. Near surface, a 150' cement plug will be set and a CIBP set on top. A dry hole tree will be installed. The rig will then be shut down. . If you require any additional information, please contact Donna Vukich at (907) 246-4261 or Stephen Hennigan, at (337) 849-5345 at your earliest convenience. Sincerely, Donna Vukich General Manager Attachments: 10-403 and back up Cc: Pete Dickinson — All American Stephen Hennigan — Petroleum Engineers, Inc for All American Naknek Geothermal Project - Well NG -1 Final Completion 12" (Nominal), 2M Master Valve 16-3/4" 3M x 12", 2M Spool 16" SOW x 16-3/4", 3M Casing Head 30 -inch Conductor Pipe (X-95) driven to 120 ft — 22 -inch, 106.5 9/ft, K-55 - R-8 Casing Cemented inside 26 -inch hole @ 397 ft 16 -inch, 84 #/ft, N-80, Buttress Casing cem. inside 17 -1/2 -inch hole @ 2,885 ft 11-3/4 x 7 -5/8 -inch - TIW Liner Hanger set @ 7,317 ft Casing window milled between 7,568ft and 7,590 ft — 11 -3/4 -inch, 60 4/ft, L-80, Buttress Casing hung inside 11 -3/4 -inch casing @ 2,560 ft cem. inside 14 -3/4 -inch hole @ 7,860 ft, 8 -5/8 -inch, 40 4/ft, L-80, Buttress casing hung inside 11 -3/4 -inch casing at 7,668ft cem. inside 10 -5/8 -inch hole @ 9,912 ft Original 7 -1/2 -inch hole TD at 11,218ft GeothermEx, Inc. 2010 NAKNEK GEOTHERMAL PROJECT To: TBD ALL-AMERICAN OILFIELD • DATE: JULY 30, 2012 RVSD 8/13/2012 FROM: STEVE HENNIGAN SUBJECT: G-1 CONSULTING ENGINEER SECURE WELL & PETROLEUM ENGINEERS, INC. BEHALF OF ALL-AMERICAN OILFIELD SUSPEND Current Status: Exploratory geothermal well is currently shut-in and secured with a 12" (nominal) 2M Master Valve. Wellbore is filled with formation water. WELL DATA: KB: 39.00' Well TD (Sidetrack hole, ST -2): 11387' MD/11346'TVD Original Sidetrack was in open hole (ST -1) and was unsuccessful PBTD: NA Drive/Structural: 30" X95 Driven to 120' Conductor: 22" 106.5# K55 R-8 set in 26" hole @ 397'— cmt rtns to surface Surface Casing: 16" 84#, N-80, BTC, Set in 17'/" hole @ 2885' — top job successful Intm Casing: 11 3/4" 60#, L-80, BTC, Set in14 3/4" hole @ 7860' (top @2560') —Inr lap sqzd - good Liner Hanger — TIW set at 7317' above window from 7568'-7590' Liner: 7 5/8" 29.7#, L-80 STL Set in 9 7/8" hole @10433' (above fish from 10621'-10480'MD) Liner consists of Blank f/ 7317'-7651' and slotted f/7651'-10433'. OH TD Wellhead: 16" x 16 %" 3M casing head - Cameron 163/"x12"2M spool 12" (Nominal) 2M Master Valve Objective: Re-enter and set cement plugs to suspend. Demobe rig and equipment. Comments: Directional Sidetrack geothermal hole in Township 17S, Range 44W, Section 14, Seward Meridian (N580 41'56", W1560 30' 14"). AK PTD DNR 2215 — NO HYDROCARBONS I Brief History: NO HYDROCARBONS • Correspondence from GeothermEx to Donna Vukich dated 05/30/11 (partial) including inserted notes by sfh. After acquiring its own drilling rig, NEA drilled an exploratory geothermal well (G-1) in 2009 and 2010. Although planned for a depth of 14,000 feet, this well was drilled initially to a total depth (TD) of 11,218 feet (the original hole or "OH") and later to 11,387 feet (the second side-track, or "ST2"). The OH was nearly vertical, while ST2 was slightly deviated (the surface projection of its bottomhole location is about 350 feet SSE of the wellhead location). The OH was completed (with 22" casing to 397' Good cement job. Observed cement returns to surface. 16 -inch casing from the surface to 2,885 feet. Shoe test was 12.5 ppge and a Top Job, Mix and pump 40 obis 15.5 ppg tail cement slurry. Below this is an 11 -3/4 -inch casing was run from 2,560 feet to 7,860 feet. Liner lap squeeze, after 200 bbls dispalced lost total returns. Displace drillpipe with 16 bbls, POH with drill string. Run 14-314" clean out assembly to liner top, test liner lap to 1,000 psi, OK. Shoe test was 10.6 ppg emw. Drilling proceeded and an 8 -5/8 -inch casing string from 7,668 to 9,912 feet. Below this depth, a 7 -1/2 -inch open hole was drilled. While drilling the OH at 11,218 feet, the 7 -1/2 -inch bit was damaged, and several of the bit's cutting heads ("cones") were lost in the hole. Attempts to fish out the cones were unsuccessful and the fishing operation became complicated due to the slim hole diameter and unstable hole conditions. An attempt was made to side-track the well out of the 8 -5/8 -inch casing and �Y go around the zone where the fish was left, but this operation also became complicated and the sidetrack (ST 1) ended falling back into the original hole. q Hog S4.�, ?j Subsequently, in a second sidetrack operation, a window was deliberately cut in the 11-3/4 inch casing. This was successful, and the well was drilled to a depth of 11,387 feet. However, the rock formations in this hole were unstable and experienced some bridging (partial or complete blockages of the hole), probably because sloughing of the argillite units within the Cottonwood Bay Formation. This sloughing led to the drill string to become stuck on many occasions, but the driller was able to pull the string free. To enable the hole to remain open while drilling (i.e., to improve the stability of the wellbore walls), a heavy drilling mud with a significant quantity of barite was used. However, despite this, at some point the string became stuck and could not be freed; as a result, the bit and part of the bottomhole assembly were left in the hole. Fishing attempts were made, but were they were not successful. Therefore a "fish" was left in the well from 10,480 feet to 10,621 feet. At present, the effective TD of well G-1 ST2 is the depth of the top of the fish (10,480 feet). Due to the instability of the wellbore walls, it was clear that a slotted liner needed to be installed to preserve access to the well, as bridging would continue without installing a liner. The liner was successfully installed from 7,317 feet to 10,433 feet. 2 i Post -Completion Activities in Well G-1 i Since completing G-1 ST2, NEA has air -lifted the well multiple times in an attempt to clean out the barite from the fractures using hydraulic (rather than chemical) methods. Services: Drilling Rig Naknek Rig Management All American Oilfield Cementing Baker Mud/fluids Baker Wire line Unit Pollard Slick Line Pollard Wellhead/Tree ??? Transportation ??? Misc rentals ???? Housing ???? Supervision All American Oilfield NOTE: All vendors are to have a current MSA in place. • Pre service work Procedure: 0 1. Review with all vendors and be sure logistics are predetermined. 2. Perform a complete inventory of products, tools, etc 3. Be sure permits are applied for and in place. 4. Tree and wellhead were installed in 2010-11. Review details. 5. Re -man rig. Inspect all components. If necessary, reinstall valves, gauges, etc. 6. Review and record all pressures. Inspect casings in cellar and insure ALL annuli are cemented. Records indicate they are. (May need to rig up test pump and test). If no test, then cement must be pumped until each annulus tests to 12.0 ppg emw.) ci-.k � p P� 7. Prep for well suspension. 1 8. Ensure gas detectors and PVT system is fully functional. ; (""': 9. Prep to use MINIMAL mud/water volume. General Procedure: 1. Notify regulatory agencies at least 24 hours prior to operations. All operations will comply with AOGCC regulations. All access will comply with NEA requirements as well. 2. Conduct pre job safety meeting, perform JSA's, begin RU of equipment and establish RKB. Adiust all elevations to RKB indicated on wellbore diagrams unless noted otherwise in the daily reports. 3. Check all tubing and casing strings for pressure and record. 4. Conduct safety and operations meeting. _7Bly Nipple up and test BOP equipment. (Test to last required test pressures). 6. Check all tubing and casing strings for pressure and record. 7. Conduct safety and operations meeting. 8. PU drill pipe and stage in hole to top of liner hanger @ +-7317'. (At each stage, circulate bottoms up monitoring for gas and pit gains.) 9. At top of liner hanger, circulate hole clean. POOH. 10. RU wl. RIH w/ rtnr & set @ +-7277'. POOH/ k 11. TIH w/ drill pipe. 12. Sting in and ESTABLISH injection rate with field water. Unsting, disp w/ water 13. & sting in. Follow with +-b is cement. 14. With +- 3 bbl cement in drillpipe, unsting from retainer, tag to verify retainer is in place (note on IADC) and SLOWLY displace (should u -tube too) leaving +-50' of cement on retainer. 15. Pull 100' and circulate out. WOC then Tag. 4 ' fa l SDo� s Civ �,.`.,,�c�`-' 16. Circulate in place inhibited formation water. 17. POOH w/ drillpipe . 18. RIH & set CIBP @ 2660' w/ wireline. P � (Sd � Ps ;,G �ia.�'f 19. TIH to 2660'+-. Spot a balanced 200' plug from 2660'-2460'. (+-30 bbls) Displace with inhibited water. 20. POOH to 175'+-. Measure distance from rig floor to base of cellar. Spot a 150' cement plug yp to that depth rkb. (+-30 bbls) Base 5plug should be 175'+-. r--�► 74—r -^4r P Afsf. 21. Set bridge plug on top of plug. Spot inhibited freeze protected water on plug. 22. ND BOPe. I,t� 23. Install dry hole tree with guage. 24. Prep rig for demobe. Fk'6 .�oc-4-.+.. s''�-c- e-i'e`�.,�o`'•`�' 25. Clean and secure location access. NOTE: Any future work with regard to re-entering this suspended well will require a 10-401 or a 10- 403 depending on work to be done. 5 • Naknek Electric Association 0 NEA # G-1 ST# 2 Block/Sec 14 -17s -44w Exploratory Q 5mi NE King Salmon Q AK Ser #.: AK DNR 2215 ' & ' 14 -17s -44w FMTN. TOPS/ PP DIR. (ppg MW or FG Comments/ me) EVALUATION CASING DEPTH MDrrVD TOC CSG/ CMT CASING & HOLE SIZE USDW 30'Air ... Gap Base of cellaz Mr. D th 8.3 8.6 9.8 90' pen.75# ----- ----- X95 Welded Drive Sz >= 30 8.3 8.6 12.0 3 inhibited water 06.5#x55 BTC 26 " 397' 22 113 11.0 12.0 12660'-2460' :,:'84#N80 BTC 20 " 2885' 16 Est roc CIBP bls Premiem 15.8ppg cmt Directional Info MD I A.Q I ND 3.-' 10.6 10.6 TOL 7317' above Window 7860' 7860' inhibited water TOC ±7227' Rtnfr @ t 7277' 10.6 179 10433' 2¢1 $ $ ¢'19.7#L80 STL 10393' $ $ # # 0.0 0.0 11387' $ $ Open Hole TD 11346' 14 3/4" 11 3/4" 9 7/8" 7 5/8" 8 1/2" 0 0 Figure 8 Nnknek Geothermal Project BLOWOUT PREVENTION EQLIPMENT FOR MUD DRILLING BELOW 11-3:4-ItiCH ENTER.IIEDLXTE CASL`G 7-5l8", 29.7 L-80, Csg. 16" SOW x 16 3M casing he 16314", 3M x 13-5%8", 5M Landing! Testing Spool for hanging 7-5'8" casing 2-1116". 5M ---- Geothermal Trim Side Valves 0 NEA Rig #7 Choke Manifold Hydiauli To Gas Buster • NEA Rig #7 Pit Volumes & Layout #1 TRANSFE RLNE ss SUCTION PIT 46.9313BL& FT 3.9BBLS;IN ?T` 4BBLS J_JME, BBLS 174 377 325 326 375 157 68 1797 s6 CESILTE? 8 SLUG PIT MDUN DESANDE G 1.63BBLa'IN =JMPS #7 SAND TRAP TRIP PIT so .o TAMC o0 21.2BGUFT -ry+ 177BOUIN SETTLING 11.3veE_� 169.5881 S PIT#1 C.9453e _ S % #2 OO.�B6_StFT ry SHALE 3.37BBL&'-N PIT 32A.698 _S d7.' BBL -'FT n 3.5' 88LS' •N SETTLING 37E 9 PIT#2 TRANSFE RLNE ss SUCTION PIT 46.9313BL& FT 3.9BBLS;IN ?T` 4BBLS J_JME, BBLS 174 377 325 326 375 157 68 1797 s6 CESILTE? 8 SLUG PIT MDUN DESANDE G 1.63BBLa'IN =JMPS 156.7813LS I S -FANS` F LIN-= #3 SETTLING PIT#1 OO.�B6_StFT ry 3.37BBL&'-N 32A.698 _S #4 SETTLING PIT#2 s 40.7586_ -FT ;n 3.3:.B9LS.' N N 325 BELS TRANSFE RLNE ss SUCTION PIT 46.9313BL& FT 3.9BBLS;IN ?T` 4BBLS J_JME, BBLS 174 377 325 326 375 157 68 1797 s6 MUD SLUG PIT MDUN 19.5988LS,'FT G 1.63BBLa'IN PtARP 156.7813LS I S II' 0 UTTI NG SACK _•TORAGE CELL :-00 CUBIC FEET APACITY DRILLING WAST= POND 250,000 GALLC I. CAPAC17Y CUTTING SACK STORAGE CELL 2200 CUBIC FEET CAPACITY C� J 11 DRILL COLLAR& DRILL COLLAR& HANDLING TOOLS. DRILL F F= HEAVY WEIGHT DRILL HEAVY WEIGHT DRILL FLOAT EQUIPMENT, PIPE PIPE SUBS, STORAGE STORAGE � Z rn z D x STORAGE _ �$ fy � c = m n rF C �^ Io n m D O D C m � GENSET -� 4 O O A y SEWAGE 00 m D i DISPOSA_ o O PARTS O UNIT z I � H HOUSE U p S E / STAIR ,K M07: y FDITDj HOUSE MOTOR SHED X2 s GENSET MOTOR SFED z 3 _ FUE_ PORTABLE TOILET d TANK TECTGN TRAILER _r � � O C Z o :2 = v PORTABLE TOILET d TANK TECTGN TRAILER _r � � O C Z � f BOTTLED � MfTAL& GAS � FABRICATING DRILLING WASTE POND 250,000 GALLON CAPACITY Page 1 of 3 C� Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Wednesday, August 22, 2012 11:32 AM To: 'Stephen F. Hennigan' Cc: Davies, Stephen F (DOA) Subject: RE: Naknek G-1 (PTD 100-488) Steve, See below in red... Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Stephen F. Hennigan [mailto:shennigan@peiinc.com] Sent: Tuesday, August 21, 2012 7:04 PM To: Schwartz, Guy L (DOA) Subject: RE: Naknek G-1 (PTD 100-488) is #1. Truthfully, I cannot find my calculations to come up with 187 bbls, but +- 287 bbls I can justify. But since there is NO HYDROCARBON, do we have to fill the entire open hole? Steve, a variance can be requested regarding amount of cement pumped. Regulations require an equal or better alternative to what is required. In this case no hydrocarbons are in place so an argument could be made for some what less pumped but again there is a lot of OH to fill with many chances to crossflow unless at least Qn hole volume is pumped. #2. Naknek (NEA) is the landowner according to their verbal and the paperwork I can find. See below: NEA needs to agree in writing to leaving the wellhead in place and establish some possible future utility for the well. Otherwise it must be cut off below grade and fully P & A `d jos fi s � �-✓� � -'� �`,.. 8/23/2012 38'42'"' 864-05" N. 156.30'27.82321" W. s8'4''45.84b4-j" N. 156'30'27,75655" 4. :EN:) FND BLM BC%ICN at cnc . oric `SAG '83 58'{1'.i7.8�771" ti iwc'�J'r7.8149;7� 'vV. Page 2 of 3 j� La 5e'42'1' . B76' S" N. Lcrg :D 3r Xiel TH i RAL J- MANCUSC.. ' LS ,'6' 1 - it I cry _'3; '�.lN' 'S. �� E<<tttt\\\\\+�` '/fZ SW L. o r T z -1 V. s+ N.139'v3'4' "E * ZK C CF RE SISTEREF) LAVSILIR 'EYCR La- 58'41'45.63C44" N. Sec ' 4 J r _ .CALF: in FFFT 500 0 500 f000 r Z ti -B'4''32.8477' N. AsuuILT tlk"dI 6�7GG7�l�LC - c'aPCSE GEOTHERMAL WELL IFY THAT I ,AN A REGISTERED-ROFE551ONAL � NEA C-1 R ANDTHAT THIS PLAT REPRE,EN -, THE 3Y ME OR UNDER MY DIRECT SUFEkYI�CN. MENTS SHOWN THERECV aCT ALLY EKIST A5 BC':X j =KP.E-< PK. 99613 THAT ALL DIMENIACNAL ANC OTHER DETAILS DR 3i: H.7. DATE ...,L'Y 13.2:,09 REGISE7 LANA SHE:'-CE.:' =Y: r ZC'%LE 8/23/2012 9C7; 2410 liz3 PR -CJ. ,#: NEA SH. ' of 1 11 Project Manager/Engineer 500 Dover Boulevard, Suite 310 1 Lafayette, LA 70503 337-984-2603 a: 337-849-5345 i Page 3 of 3 PETROLEUM ENGINEERS, INC. Hamilton Confidentiality Notice: The information transmitted is intended only for the person(s) or entity to which it is addressed. It may contain confidential and/or privileged information or material. Any review, retransmission, dissemination to other use of, or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. From: Schwartz, Guy L (DOA)(mailto:guy.schwariz@alaska.gov] Sent: Tuesday, August 21, 2012 6:06 PM To: Stephen Hennigan Subject: Naknek G-1 (PTD 100-488) Steve, Couple of questions on the Sundry to P & A the well... 1) How did you calculate the volume of cement for the first cement plug below retainer at 7200' md? It doesn't seem to match the OH volume... 2) 1 need some kind of statement from the landowner that they are ok with leaving the wellhead instead of cutting off below grade.... is there some use for the well in the future? This leaves the well suspended in our database instead of P & A 'd ... Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) 8/23/2012 MEMO Lafayette 500 Dover Blvd., Ste. 310 337.984.2603 Main Lafayette, LA 70503 337.984.0854 Fax TO: AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 Attn: Samantha/Jody FROM: Stephen Hennigan for NEA DATE: August 15 2012 i PETROLEUM ENGINEERS, INC. A Hamilton Company www.hamiltongroup.org 777 Post Oak Blvd., Ste. 400 Houston, TX 77056 (907) 793-1221 Houston 713.975.1971 Main 713.975.6271 Fax SUBJECT: Nak nek Electric Sundry Application ENCLOSED IS THE APD PACKET FOR G-1 PLEASE REFER TO EMAIL SENT 8/15/12 THAT CONFIRMATION OF RECEIPT IS REQUESTED. A SCANNED COPY OF THE PAGE WITH THE DATE STAMP IS SUFFICIENT. APPRECIATE YOUR HELP STEPHEN F. (STEVE) HENNIGAN v Stephen F. Hennigan From: Donna Vukich <dvukich@nea.coop> Sent: Tuesday, August 14, 2012 8:32 PM To: Pete Dickinson; Stephen F. Hennigan Subject: FW: AOGGCC AUG 14, 2012 Attachments: AOGCC AUG 14, 2012.pdf Pete and Stephen — Will you file this for us? Thank you. Donna 17ukich GeneraC.wlanager Naknek ECectric .Association, Inc. Tek 907.246.4261 Fax: 907.246.6242 Ema& dvukich@nea.coob N � ,R NAKNEK ELECTRIC ASSOCIATION, INC. POST OFFICE BOX 118 • NAKNEK. ALASKA 9lMM • PHONE i907)246 -4N1- FAX i 907! ?48.62412 August 14,2012 PiECEIVED Ms. Cathy Foerster, Chair 1, Alaska Oil and Gas Conservation Commission , AUG 16 '� 333 West i Avenue, Suite 100 /14 112 Anchorage, AK 99501 AOGC RE: Request for Suspension of Well Naknek-G #I 6 Miles NE of King Salmon, AKiV T17S, R44W, 5M, Sec 14, E1/$SWI/4 &Sec Q�- Geothermal Permit to Drill #s2is Dear Ms_ Foerster:Naknek Electric Association, Inc. ("NEA") requests appndry 10-403 to suspend operations on the Naknek-G #lgeothermal water well rmitted by the Amended Geothermal Permit to Drill #2215. The well history is supplied in the attached procedu Well is presently full of formation water and static with no pressure. Plans include restarting the setting a retainer above the lowest liner top, and squeezing the open hole full of cement. F(311 in at, a CIBP will be set below the next liner top and a 200' balanced cement plug will be set. Near surface, 150' cement plug will be set and a CIBP set on top. A dry hole tree will be installed. The rig will then but down. If you require any additional informatio , please contact Donna Vukich at (907) 246-4461 or Stephen Hennigan, at (S37) 849-5345 at your ear ' st convenience. Sincerely, Donna Vukich General Manager Attachments: 10-403 and back up Cc: Pete Dickinson — All American Stephen Hennigan — Petroleum Engineers, Inc for All American • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 A4C 25.280 1. Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate Now Pod ❑ Repair Wal ❑ Change Approved Program ❑ Suspend ❑' Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extenow ❑ Operations Shutdown ❑ Re-orter SM. Well ❑ Stimulate ❑ Alter Casing ❑ C11W.. ❑ 2. Operator Name: 4. Current Wall Class: 5. Permit to Drill Number. xcl Naknek Electric Association Inc Davaiawwd ❑ Exploratory ❑ Stratigraphic ❑ Service ❑ ADNR 000 Geothermal Permit 8 2215 3. Address: 6. API Number. PO Box 118 Naknek, AK 99633 50-/f,5 7. H perforating, closest approach in pool(s) opened by this operation to nearest S. Wall Name and Number, �4 C EIVEU property line where ownership or landownership charges: Spacing Exception Required? Yes El No 0 Naknek G#1 9. Property Designation (Lease Number): 10. Field/Pool(s): < Private Ownership by NI=A I NA 11. PRESENT WELL CONDITION StN1MARY Total Depth MO (ft): Total Depth TVD (ft): Depth MD (ft): Effective Depth TVD (1t): Plugs (measured): Junk (measured): 11387' 11346' jEffective 10433' 10393' SEE Schematic 10480'-621' Casing Length Size MD TVD Burst Collapse Structural 120' 30 12V 120' no no Conductor 397' 22 397' 397' 2370 874 Surface 2885' 16 2885' 2 4330 1480 Intermettiate 5300' 11314" 7860' 860' 5830 3180 Production 3116' 7 5M-1 10433-1 10393' 8890 4790 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): TuWrg Size: Tubing G de: Tubing MD (ft): no - OH Packers and SSSV Type: Packers and SSSV (it) and TVD (ft): 12. Attachments: Description Summary of Proposal ❑ 13. Well Clash er proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Explorato�i� ❑' Development ❑ Service ❑ 14. Estimated Date for 15. Wall ager proposed work: Commencing09/17/12 Operations: O ',� Gas ❑ VYOSPL ❑ Suspended ❑ WI ❑ GINJ ❑ WAG ❑ Abandoned ❑ 16. Verbal Approval: bete: Commission Representative: GSTOR ❑ SPLUG ❑ 17.1 hereby certify that the foregoing is true and correct to the best of ge. Contact Printed Name Donna Vukich lneral Manager, Nakenek Electric Association, Inc Z Signature I i r Phone 261Date 08/14/12 COMMSS10N USE ONLY Conditions of approval: Notify Commission so that a represefrtrit' may witness Sundry Number: v Plug Integrity C]BOP Test ❑ a cal Integrity Test ❑ Location Clearance ❑ Other: 4 Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Form 10.403 Revised 1/2010 it"i� Submit In Duplicate D � r 0 • Naknek Geothermal Project - Well NG -1 Final Completion 12" (Nominal), 2M Master Valve 16-3/4" 3M x 12", 2M Spool Cellar 16" SOW x 16-3/4", 3M Casing Head 30 -inch Conductor Pipe (X-95) driven to 120 ft — 22 -inch, 106.5 #/ft, K-55 - R-8 Casing Cemented inside 26 -inch hole @ 397 ft 16 -inch, 84 #/ft, N-80, Buttress Casing cern, inside 17 -1/2 -inch hole @ 2,885 ft GeothermEx, Inc. 2010 SIDETRACK DETAILS 11-3/4 x 7 -5/8 -inch - TIW Liner Hanger _ HOLE DIAMETER = 9.875-INCH 7,317 ft KICK-OFF FROM 7,590 FT (MD) set @ MAX. ANGLE = 9.6 DEG. .• `�- AZIMUTH =160 DEG. ' • _ TD = 11,387 FT (MD) - 11,346 (TVD) FISH LEFT IN HOLE - 10,621 to 10,480 FT (MD) Casing window milled between 7,568ft and 7,590 ft a LINER DETAILS • '� i 7-5/8", 29.7 #/FT, L-80, STL PREMIUM THREAD ,. HUNG DEPTH - 7,317 FT ^ BLANK LINER - 7,317 to 7,651 FT SLOTTED LINER - 7,651 to 10,433 FT r 11 -3/4 -inch, 60 #/ft, L-80, Buttress Casing ' hung inside 11 -3/4 -inch casing @ 2,560 ft cent. inside 14 -3/4 -inch hole @ 7,860 ft, 8 -5/8 -inch, 40 #/ft, L-80, Buttress casing'` hung inside 11 -3/4 -inch casing at 7,668ft • ft cem. inside 10 -5/8 -inch hole @ 9,912or `' \ } .R \\ FIs Original 7 -1/2 -inch hole TD at 11,218ft GeothermEx, Inc. 2010 To: TBD NAKNEK ALL-AMERICAN OILFIELD GEOTHERMAL PROJECT FROM: STEVE HENNIGAN CONSULTING ENGINEER PEYROLEUM ENGINEERS, INC. BEHALF OF ALL-AMERICAN OILFIELD DATE: JULY 30, 2012 RVSD 8/13/2012 SUBJECT: G-1 SECURE WELL & SUSPEND Current Status: Exploratory geothermal well is currently shut-in and secured with a 12" (nominal) 2M Master Valve. Wellbore is filled with formation water. WELL DATA: KB: 39.00' Well TD (Sidetrack hole, ST -2): 11387' MD/11346'TVD Original Sidetrack was in open hole (ST -1) and was unsuccessful PBTD: NA Drive/Structural: 30" X95 Driven to 120' Conductor: 22" 106.5# K55 R-8 set in 26" hole @ 397'— cmt rtns to surface Surface Casing: 16" 84#, N-80, BTC, Set in 17 Y2" hole @ 2885'— top job successful Intm Casing: 113/4" 60#, L-80, BTC, Set in14 3/4" hole @ 7860' (top @2560') Anr lap sqzd - good Liner Hanger — TIW set at 7317' above window from 7568'-7590' Liner: 7 5/8"29.7#, L-80 STL Set in 9 7/8" hole @10433' (above fish from 10621'-10480'MD) Liner consists of Blank f/ 7317'-7651' and slotted f/7651'-10433'. OH TD Wellhead: 16" x 16 %" 3M casing head - Cameron 16 3/" x 12" 2M spool 12" (Nominal) 2M Master Valve Objective: Re-enter and set cement plugs to suspend. Demobe rig and equipment. Comments: Directional Sidetrack geothermal hole in Township 17S, Range 44W, Section 14, Seward Meridian (N580 41'56", W1560 30' 14"). AK PTD DNR 2215 — NO HYDROCARBONS i Brief History: NO HYDROCARBONS 0 Correspondence from GeothermEx to Donna Vukich dated 05/30/11 (partial) including inserted notes by sfh. After acquiring its own drilling rig, NEA drilled an exploratory geothermal well (G-1) in 2009 and 2010. Although planned for a depth of 14,000 feet, this well was drilled initially to a total depth (TD) of 11,218 feet (the original hole or "OH") and later to 11,387 feet (the second side-track, or "ST2"). The OH was nearly vertical, while ST2 was slightly deviated (the surface projection of its bottomhole location is about 350 feet SSE of the wellhead location). The OH was completed (with 22" casing to 397' Good cement job. Observed cement returns to surface. 16 -inch casing from the surface to 2,885 feet. Shoe test was 12.5 ppge and a Top Job, Mix and pump 40 bbis 15.5 ppg tail cement slurry. Below this is an 11 -3/4 -inch casing was run from 2,560 feet to 7,860 feet. Liner lap squeeze, after 200 bbis dispak ed lost total returns. Displace drillpipe with 16 bbls, POH with drill string. Run 14-3/4" dean out assembly to liner top, test liner lap to 1,000 psi, OK. Shoe test was 10.6 ppg emw. Drilling proceeded and an 8 -5/8 -inch casing string from 7,668 to 9,912 feet. Below this depth, a 7 -1/2 -inch open hole was drilled. While drilling the OH at 11,218 feet, the 7 -1/2 -inch bit was damaged, and several of the bit's cutting heads ("cones") were lost in the hole. Attempts to fish out the cones were unsuccessful and the fishing operation became complicated due to the slim hole diameter and unstable hole conditions. An attempt was made to side-track the well out of the 8 -5/8 -inch casing and go around the zone where the fish was left, but this operation also became complicated and the sidetrack (ST 1) ended falling back into the original hole. Subsequently, in a second sidetrack operation, a window was deliberately cut in the 11-3/4 inch casing. This was successful, and the well was drilled to a depth of 11,387 feet. However, the rock formations in this hole were unstable and experienced some bridging (partial or complete blockages of the hole), probably because sloughing of the argillite units within the Cottonwood Bay Formation. This sloughing led to the drill string to become stuck on many occasions, but the driller was able to pull the string free. To enable the hole to remain open while drilling (Le., to improve the stability of the wellbore walls), a heavy drilling mud with a significant quantity of barite was used. However, despite this, at some point the string became stuck and could not be freed; as a result, the bit and part of the bottomhole assembly were left in the hole. Fishing attempts were made, but were they were not successful. Therefore a "fish" was left in the well from 10,480 feet to 10,621 feet. At present, the effective TD of well G-1 ST2 is the depth of the top of the fish (10,480 feet). Due to the instability of the wellbore walls, it was clear that a slotted liner needed to be installed to preserve access to the well, as bridging would continue without installing a liner. The liner was successfully installed from 7,317 feet to 10,433 feet. 2 Post -Completion Activities in Well G-1 Since completing G-1 ST2, NEA has air -lifted the well multiple times in an attempt to clean out the barite from the fractures using hydraulic (rather than chemical) methods. Services: Drilling Rig Naknek Rig Management All American Oilfield Cementing Baker Mud/fluids Baker Wire line Unit Pollard Slick Line Pollard Wellhead/Tree ??? Transportation ??? Misc rentals ???? Housing ???? Supervision All American Oilfield NOTE: All vendors are to have a current MSA in place. Pre service work Procedure: 1. Review with all vendors and be sure logistics are predetermined. 2. Perform a complete inventory of products, tools, etc 3. Be sure permits are applied for and in place. 4. Tree and wellhead were installed in 2010-11. Review details. 5. Re -man rig. Inspect all components. If necessary, reinstall valves, gauges, etc. 6. Review and record all pressures. Inspect casings in cellar and insure ALL annuli are cemented. Records indicate they are. (May need to rig up test pump and test). If no test, then cement must be pumped until each annulus tests to 12.0 ppg emw.) 7. Prep for well suspension. 8. Ensure gas detectors and PVT system is fully functional. 9. Prep to use MINIMAL mud/water volume. General Procedure: 1. Notify regulatory agencies at least 24 hours prior to operations. All operations will comply with AOGCC regulations. All access will comply with NEA requirements as well. 2. Conduct pre job safety meeting, perform JSA's, begin RU of equipment and establish RKB. Adiust all elevations to RIB indicated on wellbore diagrams unless noted otherwise in the daily reports. 3. Check all tubing and casing strings for pressure and record. 4. Conduct safety and operations meeting. 5. Nipple up and test BOP equipment. (Test to last required test pressures). 6. Check all tubing and casing strings for pressure and record. 7. Conduct safety and operations meeting. 8. PU drill pipe and stage in hole to top of liner hanger @ +-7317'. (At each stage, circulate bottoms up monitoring for gas and pit gains.) 9. At top of liner hanger, circulate hole clean. POOH. 10. RU wl. RIH w/ rtnr & set @ +-7277'. POOH/ 11. TIH w/ drill pipe. 12. Sting in and ESTABLISH injection rate with field water. Unsting, disp w/ water 13. & sting in. Follow with +-187 bbls cement. 14. With +- 3 bbl cement in drillpipe, unsting from retainer, tag to verify retainer is in place (note on IADC) and SLOWLY displace (should u -tube too) leaving +-50' of cement on retainer. 15. Pull 100' and circulate out. WOC then Tag. 4 • 16. Circulate in place inhibited formation water. 17. POOH w/ drillpipe . 18. RIH & set CIBP @ 2660'w/ wireline. 19. TIH to 2660'+-. Spot a balanced 200' plug from 2660'-2460'. (+-30 bbls) Displace with inhibited water. 20. POOH to 175'+-. Measure distance from rig floor to base of cellar. Spot a 150' cement plug up to that depth rkb. (+-30 bbls) Base of plug should be 175'+-. 21. Set bridge plug on top of plug. Spot inhibited freeze protected water on plug. 22. ND BOPe. 23. Install dry hole tree with guage. 24. Prep rig for demobe. I25. Clean and secure location access. NOTE: Any future work with regard to re-entering this suspended well will require a 10-401 or a 10- 403 depending on work to be done. 5 • 1 x • Naknek Electric Association Q NEA # G-1 ST# 2 Block/Sec 14 -17s -44w Exploratory 0 5mi NE King Salmon Q AK Ser #.: AK DNR 2215 ' & ' 14 -17s -44w FMTN. TOPS/ DIR. PP MW (ppg or FG ppge) Comments/ CASING DEPTH EVALUATION MDTFVD TOC CSG/ CMT CASING & HOLE SIZE USDW:' 30' ..� '.. Air Gap ..30 Base of cellar �� 0' _. __ ........................................... Mr. Dpth 9.8 90'pen 120' ±175'-25' ------------------------ .75#X95 Welded Drive Sz» 30 n6 12.0 3 inhibited water 106.5#x55 BTC 26 " 397'; 22 8.3 12.0 12.0 2885' ±2660'-246' : 84# N80 BTC 20 " 2885' _ 16 Est -TOC CIBP b1s Premiem 15.8 ppg cmt inhibited water TOC 17227' TOL 7317' above Rtnii @ f 7277' Window t &4 10.6 10.6 7860'• `.2 [¢.60#L80 BTC 14 3/4" Directional Info 7860' 20 [¢f' 11 3/4" MD I Ane I TVD 20 E02 ;f, E 17.9 0 0 0.0 2d[02 2¢ [02 10433' 2i'z '29.7# L80 STL 9 7/8" 10393' $ 7 50v Icima..$ 11387' $ $ Onen 110e TD 8 112" 11346' • • Naknek Geothermal Proiect - Well NG -1 Final Completion 12" (Nominal), 2M Master Valve 16-3/4" 3M x 12", 2M Spool 16" SOW x 16-3/4", 3M Casing Head 30 -inch Conductor Pipe (X-95) driven to 120 ft — 22 -inch, 106.5 #/ft, K-55 - R-8 Casing Cemented inside 26 -inch hole @ 397 ft 16 -inch, 84 #/ft, N-80, Buttress Casing cern. inside 17 -1/2 -inch hole @ 2,885 ft 11-3/4 x 7 -5/8 -inch - TIW Liner Hanger set @ 7,317 ft Casing window milled between 7,568ft and 7,590 ft — 11 -3/4 -inch, 60 #/ft, L-80, Buttress Casing hung inside 11 -3/4 -inch casing @ 2,560 ft cern. inside 14 -3/4 -inch hole @ 7,860 ft, 8 -5/8 -inch, 40 #/ft, L-80, Buttress casing hung inside 11 -3/4 -inch casing at 7,668ft cem. inside 10 -5/8 -inch hole @ 9,912 ft Original 7 -1/2 -inch hole TD at I IX8ft r ./• ./� ,t. J- /' rise GeothermEx, Inc. 7n1n .P • - SIDETRACK DETAILS HOLE DIAMETER = 9.875 -INCH KICK-OFF FROM 7,590 FT (MD) ' MAX. ANGLE = 9.6 DEG. AZIMUTH =160 DEG. TD =11,387 FT (MD) - 11,346 (TVD) FISH LEFT IN HOLE - 10,621 to 10480 FT (MD) ` LINER DETAILS 7-5/8-,29.7 #/FT, L-80, STL PREMIUM THREAD HUNG DEPTH = 7,317 FT BLANK LINER - 7,317 to 7,651 FT ' SLOTTED LINER - 7,651 to 10,433 FT r ./• ./� ,t. J- /' rise GeothermEx, Inc. 7n1n 5 2000 4000 LL s CL v 0 6000 v OE� 8000 10000 120 Naknek G-1 Temperature vs. Measured Depth CONFIDENTIAL Temperature (Degrees F) 50 100 150 200 250 300 350 400 O Bottoms -Up Mud Temps (Mud Log - Orig. Hole) ♦ Bottoms -Up Mud Temps (Mud Log - Sidetrack Hole) Mud Temp In (Mud Log -Orig. Hole) 18 hours since circulation stopped Mud Temp In (Mud Log - Sidetrack Hole) Mud Temp Out (Mud Log - Orig. Hole) Mud Temp Out (Mud Log - Sidetrack Hole) ♦ Max. Recorded Temps (Well Log Runs - Orig. Hole) • ReportedTemps-Original Hole (Well Summary 23 hours since Report; No Back-up Data) circulation stopped .� O Reported Temps - Sidetrack Hole (Well Summary Report; No Back-up Data) At 1 \ 17 hours since circulation stopped SFD AOGCC January 23, 2012 0 0 + 2000 4000 LL t Q v 0 6000 L ra N ►� 8000 10000 12C AOGCC 0 Naknek G-1 Temperature vs. Measured Depth CONFIDENTIAL Temperature (Degrees F) 50 100 150 200 250 300 18 hours since circulation stopped 23 hours since circulation stopped 350 400 o Bottoms -Up Mud Temps (Mud Log - Orig. Hole) ♦ Bottoms -Up Mud Temps (Mud Log - Sidetrack Hole) Mud Temp In (Mud Log - Orig. Hole) Mud Temp In (Mud Log - Sidetrack Hole) Mud Temp Out (Mud Log - Orig. Hole) Mud Temp Out (Mud Log - Sidetrack Hole) Max. Rjecorded Temps (Well Log Runs - Orig. Hole) Reported Temps -Original Hole (Well Summary Report; No Back-up Data) o Reported Temps - Sidetrack Hole (Well Summary Report; No Back-up Data) 1 17 hours since circulation stopped a SFD January 23, 2012 CONFIDENTIAL 27 Jan, 2012 COMPLIANCE SUMMARY Naknek G-1 PTD 1004880 API 50 185 20001 00 00 Initial Borehole 0 - 11,218 Spud 16 Aug, 2009 - TD 16 Dec, 2009 OH Wireline Logs Run on 21 Nov, 2009 (Casing Point) SPECTRALOG Hexagonal Caliper X -Multipole Array Acoustilog Compensated Z -Density GR 387'- 9,902' Runs 1, 2, & 3 387'- 9,902' Runs 1, 2, & 3 387'- 9,902' Runs 1, 2, & 3 Initial Borehole 9,002'- 11,218' borehole "Junked" Borehole Plugged back and kicked off @ 9,896' Remedial Sidetrack 1 9,896'- 9,967' 16 Jan, 2010 - TD 19 Jan, 2010 No OH Wireline Logs Run - borehole "junked" Borehole Plugged back and kicked off @ 7,568' Remedial Sidetrack 2 7,568' - 11,387' 9 Feb, 2010 - TD 22 Apr, 2010 No OH Wireline Logs Run - borehole "junked" Well Status "Other" from 407 Note: Daily Drilling History (quite detailed) suggests that, while on location, a considerable amount of time was used remediating hole problems and rig repair. No Continous Temperature Log run - Only Multiple Point Temps (in Daily Drilling reports) Note: Permit Package mentions "Continuous Temperature Log or Multiple Point Temperatures" No Core Cut Samples Not Required (AOGCC Permit) Directional Survey "not checked Yes or No" (AOGCC Permit) Directional survey info in Daily Drilling reports Note: Enhanced Geothermal Systems (EGS) logging suggests Acoustic Logs, Density, and Gamma Ray logs. No mention of Resistivity Logs. (DNR Permit package para. 7.21) No OH Digital log data submitted (LAS, DLIS, LIS nor Graphics files) Mud logs (paper copies) Ambiguous at Best. Some copies unreadable. No Graphics files submitted. • CONFIDENTIAL Naknek G-1 PTD 1004880 API 50 185 20001 00 00 Data Needed: Digital LAS Logging data for the following logs: 1) SPECTRALOG 2) Hexagonal Caliper 3) X -Multipole Array Acoustilog Compensated Z -Density GR 387'- 9,902' Runs 1, 2, & 3 387'- 9,902' Runs 1, 2, & 3 387'- 9,902' Runs 1, 2, & 3 Digital Graphics files (.pds, .pdf, .emf, cgm, or etc ) for the following logs: 1) SPECTRALOG 2) Hexagonal Caliper 3) X -Multipole Array Acoustilog Compensated Z -Density GR 387'- 9,902' Runs 1, 2, & 3 387'- 9,902' Runs 1, 2, & 3 387'- 9,902' Runs 1, 2, & 3 Digital LAS Mud Logging data for all boreholes. (Initial borehole, Remedial Sidetrack 1 and Remedial Sidetrack 2) Digital Graphics files (.pds, .pdf, .emf, cgm, or etc ) for all boreholes. (Initial borehole, Remedial Sidetrack 1 and Remedial Sidetrack 2) Clear, continuous paper copies of the Mud Log for all boreholes. (Initial borehole, Remedial Sidetrack 1 and Remedial Sidetrack 2) Please submit using accepted industry practice. • 120119_NOTES_Nakneck-G-1_Timeline.txt Naknek G-1 information Inventory as of Jan 19, 2012 Timeline: Aug 17, 2009: Spud well Nov 21, 2009: Driller depth 9914' MD. Run open hole well logs (acoustic, caliper, density, GR) to 9905' MD. Nov 22, 2009: Lost 35 joints of 8-5/8" casing in hole. Fish. Nov 24, 2009: Lay down fish. start clean out run to TD. Nov 26, 2009: set 8-5/8" liner with shoe at 9912' MD, and cement. Dec 08, 2009: Begin drilling 7-1/2" open hole. Dec 16, 2009: Drill to 11,218' MD. Lost all 3 cones from bit in hole. Dec 18, 2009: wash and ream to 10774', unable to get deeper. Dec 19, 2009: suspend drilling operations; plan sidetrack operations. Dec 22, 2009: Secure well and notify DNR of suspended well operations. Jan 05, 2010: Prep to restart drilling operations. Jan 06, 2010: Lost storm packer downhole. Jan 07, 2010: Rig up to retreive storm packer. Jan 09, 2010: set bridge plug in original hole at 9895' MD; prep to sidetrack Jan 10, 2010: Start milling operations. Jan 12, 2010: Mill twisted off. Fish. Jan 14, 2010: Recover mill. Jan 16, 2010: Mill window section from 9877' to 9896' MD. Jan 17, 2010: unable to work drill string into open hole. Jan 18, 2010: Drilling from 9896' to 9920' MD. Drill pipe wash out. Jan 19, 2010: Drill from 9920' to 9940' MD. Jan 20, 2010: Mud motor stalls out at 9967' MD. Jan 21, 2010: Mud motor stalls out again at 9967' MD. Appears to be old drill string in original hole. wash down to 9995' MD. Jan 22, 2010: Suspend drilling operations. Decide to sidetrack again. Feb 08, 2010: Prep to resume drilling operations. Feb 13, 2010: Make up whipstock assembly. Run in hole and orient. Begin milling window at 7568' MD. Flex joint twisted off; lost 12' fish in Feb 14, Feb 15, Feb 17, Mar 18, Mar 21, Mar 22, Mar 23, Mar 26, Mar 30, Apr 03, Apr 05, Apr 07, 10,475' Apr 09, Apr 10, Apr 15, Apr 16, Apr 22, hole. 2010: 2010: 2010: 2010: 2010: 2010: 1010: 2010: 2010: 2010: 2010: 2010: MD. 2010: 2010: 2010: 2010: 2010: Fishing. Resume milling window. Bottom of window 7603' MD. Sidetrack window at 7568' MD to 7590' MD. Begin drilling. sidetrack TD at 11,387' MD Drill string stuck at 10338' MD while running in hole. out of hole with drill string. Run in hole with hole -opener. open up hole wash and ream to 10,315' MD. wash and ream to 10,334' MD. wash and ream to 40,432' MD. wash and ream to 10,651' MD. Drill string Free -point inidcator shows string stuck at Back off. Ream to 10 427' MD. to 10,295' MD. Can't get deeper. stuck at 10,622' MD. 10,510' MD. String -shot fired at Ream to 10,477' MD, and tag top of fish. Fishing ops begin. Run 7-5/8" liner to 10,433 MD. Change hole over to fresh water. Monitor well. Last well Summary Report. unsuccessful. Daily Completion Report dated Apr 23 to Sep 12, 2010 says wait on financing to secure well bore. Daily Completion Report dated Sep 12 to Sep 15, 2010 says Nipple down BOP and secure well head with Production Tree. Retrieve RTTS packer and shut in mater valve. Sep 15, 2010: Rig released. Page 1 CONFIDENTIAL 120119_NOTES_Nakneck_G-1_Data_search.txt Naknek G-1 Information inventory as of Jan 19, 2012 Timeline: Aug 17, 2009: Spud well Nov 21, 2009: Driller depth 9914' MD. Run open hole well logs to 9905' MD. Dec 16, 2009: Drill to 11,218' MD. Lost all 3 cones from bit in hole. Feb 17, 2010: sidetrack window at 7568' MD Mar 18, 2010: sidetrack TD at 11,387' MD Data Found: Completion report indicates TD of sidetrack is 10,473' MD / TVD, with the date that TD was reached as 4/5/2010. Have three openhole well logs in original hole to 9905' MD dated Nov 21, 2009 (GR Spectralog, Caliper Log, Acoustilog-Densilog). Have loose pages of mud log in original hole to about (7600' MD) and in sidetrack hole from about 7600' MDto 10,000', with last entry dated Mar 4, 2010. No mud log of original well below sidetrack window at about 7568' MD No mud log of sidetrack well below 10,000' MD No open hole resistivity logs at all. No other open hole logs of original hole below 9905' MD. No openhole logs from sidetrack well. Page 1 kGCj'`-«V E 00 ALASKA jr SEAN PARNELL, GOVERNOR ALASKA 011L AND GAS / 333W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907)276-7542 September 27, 2011 CERTIFIED MAIL — RETURN RECEIPT REQUESTED 70091160 0004 5753 8380 Ms. Donna Vukich Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 woo[ f.11a Subject: Well Abandonment Dear Ms. Vukich: A recent Anchorage Daily News report (Sunday, September 25, 2011), indicates Naknek Electric Association, Inc. (NEA) intends to sell its drilling rig. This rig was used to drill the Naknek-G#I (Gl) well. To the extent the rig sale indicates NEA is ceasing its drilling operations, NEA is reminded that Alaska regulations require that all wells must be plugged and abandoned before expiration of the owner's rights in that property or, if the owner is the landowner, within one year following the cessation of activity. The requirements for a properly plugged and abandoned well can be found at 20 AAC 25.112. In accordance with the Alaska Oil and Gas Conservation Commission's (AOGCC) regulations, please submit, on AOGCC Form 10-403, an abandonment plan and schedule for the GI well. Sinc ely, Daniel T. amount, Jr. Chair, Commissioner Ms. Donna Vukicb September 27, 2011 Page 2 of 2 RECONSIDERATION AND APPEAL As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, -a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to as on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of re- consideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Com- mission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by in- action, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on re- consideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on re- consideration. As provided in AS 31.05.080(b), " [tlhe questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the pe- riod; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the nest day that does not fall on a weekend or state holiday. H CERTIFIED MAILW RECEIPT y� (Domestic Mail Only; No Insurance Coverage Provic M Ln L M1 Ir _ Irl Postage $ rq C3 Certified Fee C3 Postmark M Retum Receipt Fee Here (Endorsement Required) t]Restricted Delivery Fee -n (Endorsement Required) ra ria Ln ED Ms. Donna Vukich M1 Naknek Electric Association, Inc. P.O. Box 118 Naknek, AK 99633 ■ Complete Items 1, 2, and 3. Also complete item 4 if Restricted Deliveryis desired. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: A. SI nature �� x 1:1 Agent �T ��y ❑ AArlm, B. JiecaK (Printed Name) I C / c2� 911 �rY D. Is deliv`eJry address ci ferem from hem 17 ❑ Yes/ f If YES, enter delivery address below: 0 No Ms. Donna Vukich Naknek Electric Association, Inc. ce, Type P.O. Box 118 arti0ed Mali 0 Expreas Mail Dgistered ❑ Return Receipt for Merchandise Naknek, AK 99633 surad Mail ❑ C.O.D. 14. Restricted Delivery! (Extra Fee) ❑ yes 2. Article Number 7005 1160 0001 5753 8380 (rrarts/er /rum service label) PS Form 3811, February 2004 Domestic Return Receipt 102695-02-M-1540 Anchorage Daily News - ALASKA Sunday, September 25, 2011 A.,5 Naknek geothermal project appears dead CHAPTER 11: Utility files for reorganization after significant setbacks. By WESLEY LOY Petroleum News Naknek Electric Association's troubled quest to find and develop a geothermal energy source appears all but dead. The small Southwest Alaska co- operative intends to sell its drilling rig and pay its unsecured creditors a dime on the dollar. That's the upshot of a proposed reorganization plan NEA filed Sept. 15 in U.S. Bankruptcy Court in Anchorage. The cooperative filed for Chapter 11 bankruptcy protection from cred- itors nearly one year ago because of problems with the geothermal drill- ing program. While the reorganization plan holds out hope the program can con- tinue — contingent on federal grants coming through — it seems the end is nigh for NENs attempt to find a cheaper way to make power. "Going forward," the court pa- pers say, the co-op "will concentrate, again, on the diesel generation of electricity." The reorganization plan is subject to a vote of certain creditors, and a judge's approval. SEARCH FOR ALTERNATIVES NEA serves the Bristol Bay ar- ea, known for its enormous summer runs of sockeye salmon. It was incor- porated in 1949 and began distribut- ing electricity in 1960. It is a nonprofit business, owned by its members. The utility has about 700 members in and around the villages of Naknek and King Salmon. NENs major commercial custom- ers are fish processing plants. It also has an important wholesale custom- er in the U.S. Air Force at King Sal- mon. In the 1990s, NEA began looking at alternatives to diesel -fired pow- er generation, including wind, coal- bed methane and geothermal. Inter- est intensified as the co-op's diesel costs spiked from around $1.20 per gallon in 2005 to more than $4 per gal- lon in 2008, says the disclosure state- ment filed with the proposed reorga- nization plan. That led NENs board to "direct management to aggressively pur- sue a geothermal power solution to the high cost of diesel power gener- ation." In early 2008, NEA bought a 120 - acre drill site some 17 miles outside King Salmon, and the following year bought an oil and gas drilling rig. It began drilling its first explorato- ry geothermal well Aug. 16, 2009, the court papers say. But complications soon obscured the vision of multiple productive wells driving a geothermal power plant. PROBLEMS SEF IN After drilling began, the U.S. De- partment of Energy said the well wasn't eligible for grants as no en- vironmental assessment had been done for the project — a requirement NEA was led to believe wasn't neces- sary, court papers say. Another setback came three days before drilling began, when regula- tors with the Alaska Oil and Gas Con- servation Commission told NEA its exploratory well would be regulated as an oil and gas well rather than a water well. This meant NEA "would need more robust blowout preventers, and would have to use heavier drilling flu- ids than it had intended," court pa- pers say. In December 2009, at a depth of 11,218 feet, a bit broke, forcing drill- ers to attempt a sidetrack. The first sidetrack failed, but a second was successfully drilled to 11,387 feet, the court papers say. The change of plans with respect to drilling mud would prove a bigger problem. On the advice of a vendor, the court papers say, NEA used barite, a dense mineral commonly used in heavy drilling fluids. After drilling, the well refused to flow under its own pressure, prevent- ing reliable testing of the well's geo- thermal strength. NENs experts be- lieve the barite drilling mud clogged the well, and despite the use of a large air compressor to try to flush out the mud, "the well continues to stubbornly -resist cleaning," the util- ity's Sept. 15 court filing says. FINANCIAL WRECKAGE NENs disclosure statement says costs associated with the well "were substantially greater than had been anticipated." By the Sept. 29, 2010, bankruptcy filing date, NEA "had incurred ap- proximately $40 million of debt that was in one way or another associated with the geothermal project." In 2008 and 2009, NEA obtained commitments from federal agen- cies for about $18 million in grants or awards, but has received less than $3 million, the disclosure statement says. Among the utility's several doz- en creditors are the National Rural Utilities Cooperative Finance Corp. and oilfield service company Baker Hughes. Unsecured claims total $28.5 mil- lion. The disclosure statement says the utility's diesel power generation property is worth $6.2 million, and the drilling rig is worth about $11 million. NEA bought the National 1320 rig in Eastern Washington in 2009 for $8.5 million, and made $3 million in winterization and other improve- ments. MORE DRILLING STILL POSSIBLE NENs reorganization plan in- cludes several major components. First, the utility will continue to operate. It's unlikely state utility reg- ulators would allow a halt in service and a "piecemeal sale" of the co-op's assets, NENs disclosure statement says. The co-op proposes to sell the drilling rig and accessories but re- tain the geothermal property includ- ing the wellbore. Proceeds would go first to secured creditors. NEA also proposes to pay $3 mil- lion over 60 months to unsecured creditors. This would equate to about 10 cents on each dollar of claims, the NEA disclosure statement says. The plan could be amended, how- ever, should the Department of Ener- gy release grant funds to drill another sidetrack to confirm the geothermal resource, court papers say. The pay- ment schedule could change depend- ing on the sidetrack results. If NEA obtains the funding to con- tinue its geothermal exploration and development, unsecured creditors could receive more money if the fi- nancing can be used to repay debts, the court papers say. RATE STABILITY A HEY GOAL A major consideration for NEA is how to cope with the debt without running off its large commercial cus- tomers, the fish processors, court pa- pers say. The utility faces a "tipping point" where these customers could aban- don NEA if rates go up. The cus- tomers could use or install their own generators, or they could take fish elsewhere for processing during the summer months when the salmon run hits and when NEA sells most of its commercial power. NEA "believes that the rates it is currently charging members are very close to this tipping point," the disclosure statement says. "A loss of any load could easily trigger a cas- cade effect where increased rates lead other commercial customers to switch to their own electric genera- tion or shift operations to other com- munities." NEA rates went up substantial- ly in 2009 "to help offset the costs of the geothermal well," the disclosure statement says. The reorganization plan itself does not raise rates further, but the disclosure statement says "mini- mal increases in utility rates" would be needed to make payments under the plan. NEA "must balance the need to recover from rates sufficient funds to confirm a plan of reorganization with the risk that any increase in rates will cause members to elect to generate their own electricity," the court pa- pers say. September 16, 2011 NAKNEK ELECTRIC ASSOCIATION, INC. POST OFFICE BOX 118 • NAKNEK, ALASKA 99633 • PHONE (907) 246-4261 • FAX (907) 246-6242 Mr. Daniel T. Seamount Jr., Chair State of Alaska Oil & Gas Conservation Commission 333 W. 7`" Avenue, Suite 100 Anchorage, AK 99501-3539 Dear Mr. Seamount: CEIVEE) SEP 2 0 2011 Aloka Oil & Gas Cons. Cornrnission Anchorage I apologize for the delay in submitting the mud log for the original hole. I believe that all of the mud logs were submitted previously, but have attached the log for the original hole, in the event that you are unable to locate it. Naknek Electric Association, Inc. was required to file a plan of reorganization to the Bankruptcy Court on September 15. The office staff and myself spent the last 45 days preparing this document. I believe that there is no further information that you do not have. Sincerely, Donna Vukich General Manager ALASKA OIL AND GAS CONSERVATION COMMISSION September 13, 2011 CERTIFIED MAIL — RETURN RECEIPT REQUESTED 7009 2250 0004 39114337 Ms. Donna Vukich Naknek Electric Association, Inc. P. O. Box 118 Naknek, AK 99633 \ bo -1-C `SSS' SEAN PARNELL, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Subject: Notice of Violation SCANNED OCT Accurate Reporting of Well Data Dear Ms. Vukich: On August 5, 2011 the Alaska Oil and Gas Conservation Commission (AOGCC or Commission) notified Naknek Electric Association, Inc. (NEA) of deficiencies in NEA's Naknck-G#1 (Gl) well data reporting. Well data reporting is required by 20 AAC 25.070 and 20 AAC 25.071. AOGCC requested NEA submit "a complete set of G1 mud logs and all other required GI data not previously submitted" within 30 days of August 5, 2011. NEA has not submitted the requested information. NEA's failure to do so is a violation of 20 AAC 25.300. NEA is requested to immediately submit GI well data as required. In addition, within 14 days of receipt of this letter, NEA is requested to provide the Commission with a written explanation of NEA's failure to timely submit GI well data as requested. Failure to comply with this request may be deemed an additional violation of the AOGCC's regulations. The Commission reserves the right to pursue enforcement action as provided by 20 AAC 25.535. Sincerely, Daniel T. Seamount, Jr. Chair Ms. Donna Vukich '- September 13, 2011 Page 2 of 2 RLUUMiID I(A I1UN AND As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. if the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[tlhe questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Donna Naknek Electric Association, • • Box • ♦ 99633 PS Form 3800. Augvsi 2006 ee rev^rse nor rnsVuclions ■ Complete Items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired.. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailplece, or on the front if space permits. 1. Article Addressed to P Cil Agent D. Is delivery address different from item 1? ❑ Yes Mer delivery address below: ❑ No Ms. Donna Vukich Naknek Electric Association, Inc. P.O. Box 118 - Naknek, AK 99633 Mail oExwese Mal 0Registered Return Receipt for Merchandise ❑ Insured Mail 0 C.O.D. 4. Restricted Delivery? abft Fee) 17 Yes z. Article Number ( 7009 2250 0004 3911 4337 transfer ficin service label) PS Form 3811, February 2004 Domestic Return Receipt 10259542-M4540 m m U ICIAL ISI rq Q- postage $ M certified Fee 7 Posrmerk C3 Return Receipt Fee Here O (Endorsement Required) O Reskicled beilvery Fee , (Endorsement Required) m Donna Naknek Electric Association, • • Box • ♦ 99633 PS Form 3800. Augvsi 2006 ee rev^rse nor rnsVuclions ■ Complete Items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired.. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailplece, or on the front if space permits. 1. Article Addressed to P Cil Agent D. Is delivery address different from item 1? ❑ Yes Mer delivery address below: ❑ No Ms. Donna Vukich Naknek Electric Association, Inc. P.O. Box 118 - Naknek, AK 99633 Mail oExwese Mal 0Registered Return Receipt for Merchandise ❑ Insured Mail 0 C.O.D. 4. Restricted Delivery? abft Fee) 17 Yes z. Article Number ( 7009 2250 0004 3911 4337 transfer ficin service label) PS Form 3811, February 2004 Domestic Return Receipt 10259542-M4540 \oU-��S�f 7ATT � 1 1 F rj�_ IL A 3 9 A SEAN PARNELL, GOVERNOR t1��Lomat SKA OIL AGAS 333W. 7th AVENUE, SUITE 100 CONSERVATION COMMSSION ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 August 5, 2011 Certified Mail Return Receipt Requested 7009 2250 0004 39114788 Donna Vukich Naknek Electric Association, Inc.1lNk'j P.O. Box 118 Naknek, AK 99633 Re: Accurate reporting of well data by Naknek Electric Association (NEA) Dear Ms. Vukich: The Alaska Oil and Gas Conservation Commission (AOGCC) and the Department of Natural Resources (DNR) recently reviewed the files for the Naknek-G#1 (GI) well. A list of all data and reports on file with either agency is attached. Reporting of well data is required by 20 AAC 25.070 and 20 AAC 25.071. At a recent meeting, NEA presented and referenced Gl well information that differs significantly from that in either the AOGCC's or the DNR's files. In particular, NEA referred to a well mud log containing, among other data, relatively elevated Gl well bore temperature data. Neither the AOGCC nor DNR can confirm this information based upon either agency's GI file. In order to ensure that the AOGCC's GI well files are complete and that NEA conforms to regulatory requirements, within 30 days of this letter's date, NEA must submit a complete set of G mud logs and all other required G data not previously submitted. Thank you for your attention to this matter. Daniel T. Seamount Chair, Commissioner Attachment Iti a IA Dom-. Postage $ $0.44 �.056,61f M Certified Fee $2.85 S p Return Receipt Fee CO- � (Endowment Required) $2.30 [:3 Restricted Delivery Fee (Entlorsemem pegmred) $0.00 r $5.59 0IV05/ 9i1 ` Donna Vukich i Naknek Electric Assiociation, Inc. PO BOX 118 Naknek, AK 99633 ■ Complete items 1, 2, and 3. Also complete Item 4 if Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. ■. Attach this card to the back of the mailpiece, or on the front if space Permits, t. Article Addressedto: A Signature prygent x `�-' " 0Addre B. R peived 6 (printed Name) C. Date of Del U Yes D. Is delivery address different from nem 1? 0 No If YES, enter delivery address below: Donna VUkiCh Naknek Electric Assiociation, Inc. PO BOX 118 1 Mai ❑E>aprese Mail Naknek, AK 99633 e Mail o Return RecelPt for Merchandise 4 Restricted Delivery! (� Fee) 0 Yes 2. ArticleNumber (Transfer from service lebel) Ps Form 3811, February 2004 7009 2250 0004 3911 4788 Domestic Return Receipt 102595-02-M-1540 Naknek G-1 Documentation on File with the State of Alaska BOPE test reports 10-407, including final well schematic, sidetrack2 directional survey, mud log (9/10/09) to 10,000' • Generalized Geology plot (2/28/11) by Alaska Earth Sciences X -Multipole Array Acoustilog, et al (11/221/09) to 9920' Hexagonal Caliper Log (11/21/09) to 9920' Spectralog (11/21/09) to 9920' • Monthly Drilling Report; dated 09/27/2009 • Monthly Drilling Report; dated 10/19/2009 Monthly Drilling Report; dated 11/28/2009 • Status Report to 8,000 ft TVD; dated 12/17/2009 (this includes a casing specs table, a generalized geologic summary to 7,500', and a compiled copy of the Drilling Summary Report. • Mud log (390-9,900 ft); dated 12/30/2009 • Spectralog (290-9,910 ft); dated 01/09/2010 (includes gamma ray, kth, caliper, kthu, tension logs) • Hexagonal caliper log (265-9,910 ft); dated 01/09/2010 (includes gamma ray, max/min radius, borehole profile, borehole cross section logs) • X -Multipole Array Accoustilog/Compensated Z-Densilog/Gamma Ray Log/TTRM SUB (265-9,910 ft); dated 01/09/2010 (includes gamma ray, caliper, bulk density, z -density porosity, delta -t, and tension logs) • Survey spreadsheet (7,560-11,330 ft); dated 03/05/2010 • Mud log (390-11,388 ft); dated 03/05/2010 0 0 HOLE CASING 26" TO 397' 22" FROM 0' TO 390' 20" TO 2890' 16" FROM 0' TO 2885' r.—Tr 14.75" TO 7860' 11.75" FROM 2560' TO 7860' 10.625" To . GEOLOGIC WOO To FROM TO TO FROM TO COMPANY NEA ABBREVIATIONS SYMBOLS WELL G-1 FIELD NB New Bit BHT Bottom Hole Temp Wireline Log J Casing Shoe RRB Re -run Bit C Carbide Test COUNTY/STATE King Salmon, CB Core Bit NR No Returns , - Steam/Water Entry N Flow Test NOB Weight On Bit LAT Logged After Trip WELL HEAD COORDINATES SPM Strokes per Minute CFM Cubic Feet per Min Cored Interval PP Pump Pressure BUT Bottoms Up Temp Deviation Survey Section 23 T. 17S, R. 44W RPM Revolutions per Min No Recovery ELEVATION LITHOLOGY REMARKS SPUD DATE 8/16/2009 TO DATEAll Basalt o0 o Glacial Deposits KB depths from KB = 27' TOTAL DEPTH ° TRUE VERTICAL DEPTH �� Breccia oee S s!i:ss:i Greenstone I S I PB= Patrick Broderick AES= Mark Neuroth TO LOCATION Shalea e� Ash Flow Tuff MO= SA= Matt Dobbs Stephen Ahlquist CONTRACTOR/RIG NEA RIG #7 o e e COMPANY REPRESENTATIVE Nick Scales Siltstone V V V v v v Tuff Bridged off at 3195' while RIH on 10/8. LA Bridged off at 2898' while RIH on 10/22. E Sandstone VV Quartzite LOG INTERVAL DATE LOGGED 9/01/09 TO+ 2t Andesite + ++++ Granodiorite DEPTH LOGGED 397 TO MUD DRILLING 397 TO <�� Rhyolite +++ Diorite SECONDARY MINERALS AIR DRILLING TO Schist � MChert Q C _ Quartz Rare << 1% Calcite Trace < 1% LOG SCALE 1:600 UNIT NO. P = Pyrite LOGGING GEOLOGISTS Dacite M99 Gneiss ® Pr H = Pyrrhotite Minor 1% to 4% - Hematite Common 4% to 7% Broderick,Neuroth Abundant 7% to 10% ® Dike Cl = Clayrite Dobbs,Ahlquist > 10% 0 0 Tecton Geologic Naknek Electrical Association G-1 Scale 1: 600 Drilling Data Litho Minerals Temperatures lation Descriptions In , ROP Temperature ITotal 100 ft/hr 0 Temperature Out 200 bbls 1600 m 50 deg F 300 Weight on Bit rt Pump Pressure 0 k lbs 80 S 0 psi 4000 rt � s � A d 1 n u ad vse .•� c»vv d n� rr moo_ 0 +- .ter ,+ rF w N N A A A N R d R fp A� (v Ln Drill 26" hole to 397'. Run 10 jts of 22",106# K-55 casing to a depth of 0 61 64 390'.Drill ahead with 20" bit.Be in to in @ 397'. NB #2 MCC 3 0' * i 63 degF T AES I I , Basalt:med-dk gry,blk,rust, a 0 hd-v hd,fresh,aphan txt,tr-c pheno & felds clasts in mtx, _. m -a rust colored magnetite,c ii pyrox,tr-mnr clr & wht qtz vng,tr-mnr epid & chlor phenos,r-tr agg & cubic pyr. Ln7 75 no losses o o I 9 �klt%k�tcs' =111te vI Andesite:med-dk grn,blu-grn, un. Run in w/ t' -Truk gry grn,gry,mod hd-hd,fresh uuo _ _.__ __ ,_ — __I_. Nq su fveys - app, microxln mtrx,com prly srtd euhed phenoxsts,com WOB 27K RPM Mud felds clasts,r qtz amygds, PP 1840 loc brecc appr,tr-mnr agg SPM 77/79 pyr,abun Chlor,abs-r seracite,r-tr epidote: rn 0 80 84 no losses j Basalt:dk gry,blk,v hd, fresh app,aphan txt,abun silica filled vesicles,abs- 100 P— 0 p 0 _C P P. Cl S G Ac Ch E C 0 T I n— 300 0 T`Out — 300 P 00 P I -- 4000 T — 160 mnr agg pyr,r-tr pyrohtite xstls,abs-tr disem chlor, 0 80 1 I r-tr epidote,tr-mnr olivine. 0 46/1 no losses Basalt:dk gry,blk,v hd, fresh app,aphan txt,abun - silica filled vesicles,abs- mnr agg pyr,r-tr pyrohtite AES xstls,abs-tr disem chlor, r-tr epidote,tr-mnr olivine, — ----- o i r micas,tr-mnr magnetite. 444 Andesite:med-dk gry/grn, mod 444 losin 20 B hd, chl alt euhed phenos in m auaaa StS3tat#' 102J 6 microxln mtrx, m Ma 9 in And, o#v' tr qtz amygds,tr tuff w/flow 4=V ua t1ka p appr w/And+Bslt ang clasts, 1 tr Ep,Pryx,Py in tuff,r qtz/ Chalcedony vug/fct fill. �uuuav 0 wuzft I , I III 1 0 RPM Mud Motor aaa PP 2000 1 P SPM 75/91 4 I AES 106J1 G o ��C1tII' >tuu44v 100 4u44: ' 0 4444: — u4444v 4444: 9/3/09 PQ 44444x: Andesite:med-dk gry/grn, mod uatuttvv uuu�vv 444444 f hd, chl alt euhed phenos in =4444v 0 44u44v Uv microxln mtrx, m Mag in And, 44444u UtUA44v A. 4. tr qtz amygds,tr tuff w/flow W4444a U4444; io8�1 2 4. appr w/And+Bslt ang clasts, Basalt & Andesite heavily _..._ ' _ _ _ _ _-- — - r-mnr Qtz/Chalcedony vug/fct uu4uu4 44 l fill,r-mnr a 99 PYr,abs-r 4444411 uu4u 109/t 2 4444 pyrhtite, tr-mnr ep, abs -r 444U4v 44444vv A=XV; PP a- o PP sera alt.,abs-tr chalcopyr. a44vvv sft-frm, fri, microxln,hvly 494 9999 u44vvv 1 chloritized, prly vis relic 999 PPP u4stvvv: 49444 ro PPPPP 444vvv o PPP PPPPP 99999 hvly chloritized,occ loc vvvvvv - Tuff:lt-gry,v sft,pr consol, vvvvvv' vvvvvv PPP 999 flow/brecc text, sub-ang vvvvvv` v 9999 _ _ WOB 37K o PPP Andesite+Basalt clasts,euhed vvvvvvv vvvvvv' Dacite:lt gry-med gry,blu Ep,Pyrx,Py,Qtz xtls,mnr hema vvvvvv gry,hd,mod felsic,wl formed RPM Mud Motor aaa PP 2000 1 P SPM 75/91 4 I AES 106J1 G o ��C1tII' 4444' 100 4u44: ' 0 4444: — 4444: 9/3/09 PQ 44444x: 44444u 444444 44444v 44444v 0 44u44v Uv A. 4. 4 Un 4. Basalt & Andesite heavily ' 4 4 chloritized and broken 44 44 444 uu4u 109/t 2 4444 no losses to A=XV; PP a- o PP PPP sft-frm, fri, microxln,hvly 494 9999 9949 chloritized, prly vis relic 999 PPP 49444 ro PPPPP o PPP PPPPP 99999 hvly chloritized,occ loc - PPP _ PPP 999 III 9944 v 9999 _ _ WOB 37K o PPP RPM Mud Motor aaa PP 2000 1 P SPM 75/91 4 I AES 106J1 G I vug fill,r chalced vug fill. 100 _ — 0 w0 — w 0 w 0 0 106J1 G vug fill,r chalced vug fill. 'i -... Hit fault zone f/1070' t/1160'.Strongly gouged zone,evidence of shearing, incr in fracturing & vng. I Basalt & Andesite heavily chloritized and broken down into clay. 109/t 2 no losses - Basalt:med-dk grn,blu-grn,v sft-frm, fri, microxln,hvly chloritized, prly vis relic txt, loc sucr app intbdd w/ Andesite:blu-grn,v sft-frm, hvly chloritized,occ loc - fresh,brecc,loc sheared vis III euhed clr qtz xtls. 109/1 2 no losses Dacite:lt gry-med gry,blu gry,hd,mod felsic,wl formed phenos,v sl alt of felds, com-abun amygod chalcedony & zeolite fill,incr in qtz. vng,com mag,tr-mnr epid. Rhyolite:gry,brick red,hd- -v hd,porphyritic,com-abun mag,com-abun chalc fill. 112/1 I 0320, deg N40W Basalt:med-dk gry/grn, mod hd w/ sft wht qtz/zeolite Illy rplcment of Feld phenos,tr C P PyA1 S GAcCh c 0 T In 300 P - 4000 Dacite blu/grn w occ com 0 T Out 300200 P T felsic vns, r conchoidal chalcedony vug fill,mnr Ox mag xtls in Basalt/Dacite. dump bbl Dumped 30 bbls and 85 bbls in sandtra to clean its. 111 /1 5 Basalt:same desc as above w/ mod chlortzd and inc dump 85 bbl felsic vug fill,sl frctrd w/qtz frac fill,slickens, wk ox hem,abs-r pyr,abs-r sera,abs-r chalcopyr,mnr 4 epidote. - - -- 7 4 0B 29K PM Mud 8 P 1970 IPM 66/9 I 1E5 0 kOB 40K ZPM Mud Motor 'P 2047 iPM 65/86 9/5/09 PB g i 100} 0 v 800 �I � 21— AES _- --------- - ----- -. w WOB 37k RPM Mud Motor PP 2093 SPM 52/84 - -- 1172/116 no losses t— -- --- - I 117/1 1no losses I i ■ - 1 I dump 60 bbl 116/1 1 - -- —._. 1. -----a 1161 I 1 no losses ---4- I 121 1 no. loses 1 dump 77 bbl I 122/1 I I i I I dump j09 hh 1191 P-qA a - CnE _ T I I In 3 _ P! _ T- ut — 300200 P7 I dump +5 bbl i I 1 123 1 i no loses - —r I - I I --- � � ---moi-- 1I 124[1 I I _ 1 I l dump 260 b6 i freshpp,wlk gry,hdod hd, fresh app,wl indur ,mod felsic,abun altrd plag,com chalced/zeo fill,mnr-cam qtz xtls,abs-r pyr,r-mnr - chlor,abs-r sera,tr-mnr epid,tr mag, abs -r hornblende 9 biotite. Dacite:med-dk gry,hd-v hd, fresh app,wl indur,mod felsic,abun altrd plag, com chat ced/zeo fill,mnr-com wl rndd qtz xtls,abs-r pyr,r- mnr chlor,tr-mnr epid,tr mag, abs -r biotite. Hit fault zone f/1670' t/1740'.Strongly gouged zone,Abun fault breccia. - Andesite 6 Dacite heavily chloritized locally. Com- Abun Serecite.Possibly Serecitic Alteration zone. I Dacite:med-dk gry,grn gry, hd-v hd, fresh app, wl indur,tr-com wl rndd qtz xtls, abs -r pyr,mnr-com chlor,r-mnr epid,tr-abun clay,r-tr hornblende. i 1 Basalt/Dacite:med-gry,grn, mad hd-v hd,com slickens dec chl/ser montmo clay to 1890,then inc clay flt-g w/ -- com org-red hem/mag, mult gen brecc and fluids, v -- rndd and milled. Oumped 77 bbl' in sand- : tra to clean rts. Basalt:med-gry,grn med hd- Tv hd,com Dacite and basalt vugs filled w/ actin occas calc/pyrox slickens,inc org hem/mag frags, inc clay fault gouge w/ depth. s IDumped 109 bblsin sand- ' trap to clean its. '._..-. ..- _. Basalt:dk gry,blk,loc blchd wht,hd-v hd, loc britt,sucr app,cryptocryst,tr-mnr oliv, tr-mnr gtz,abs-r calc,r-mnr chlor, tr-com sera, r-com actin,r-mnr epid,r-abun clay. I - 400 160 Dumped 45 bbls in sand- -; tra to clean its. Ash Flow Tuff:wht,lt gry, beige,v sft-sft,predom clay, loc relic txt,stratified,com biotite flakes,loc slicks,w/ abun basalt clasts intbdd w/ - Basalt:lt-dk gry,blu-gry,grn- gry,brn gry,hd-v hd,occ sucr .--- txt,porphyr,mnr chalced,r calc,abs-r agg pyr,com-abun chlor,r-tr sera,r-mnr actin, abs -t chalcopyr, r-mnr epid. Ili Basalt: It gry-med gry,mod hd, increaa brecc,a Phan w/ andes flow text,abndt It gry,grn, purp incomp montmo clay w/ diop,monz,epid xtl,tr bright turq-blu (az or clay?),abun hem-mag,r pyr vns,r brn-yel mica,r chl vns,com pyroxene slickens,frags well rndd. s Dumped 260 bbls in sand- , tra to clean its. 100 431 2PM Mud Nator 'P 2010 iPM 57/88 130 IOB 331 8 !PM 67MD 'P 2198 PM 72/88 I 47k 69 2427 77/9 2 10 0 i 80 493' 96 11, hours 7-9 ' 3 N - --- `� /28/09 AES- IOB 331 8 !PM 67MD 'P 2198 PM 72/88 I 47k 69 2427 77/9 2 Rhyolite flows:lt-med pink, brn-pink,cryptocrystalline grndmss,sucr txt,abun K -spar, intbdd w/Andesite 8 Diorite: mad hd-hd,chlortzd,gry,grn- gry,mod fresh,loc brecc,r-com hems alyd mag,mnr clr qtz xtls,abs-r disem calc,tr-mnr pyr,mnr-cam chlor,mnr-abun - ser alt,tr-com epid,abun - clay. Dumped 55 bbls in sand- . dump 1. 55 bbl tra to clean its. 1 201 Basal t:lt gry-med gry,hd-v hd,aphan,mass,loc qtz vng, intbdd w/Rhyolite:lt pink- . , brn pink,mod hd-hd,sucr txt, '... I abun k-spar,zone is hvly brecc,mnr-abun chlortz,tr- mnr serec alt, abun clay alt, r-mnr epid, mnr-com qtz vng __ B frac fill , r-com disem B vng cal% com-abun hems alt _ 121(1 dump, _bbl of mag. Hvly hydra the rural ly altrd. }r I Dumped 95 bb Isin sand- tra to clean its. Basalt -fault breccia:basalt, t 2746' andes,rhyolite clasts,sub- - _ 0 20 deg _ _ rndd, exibiting stg hydrthrm S21M - alt,suspand in mantmo incomp ',. clay abun org/rd/brn hem -mag xt is coating basBanda fr ags, '.. � w/Clay:lt-gry,grn,purp,brecc, 122/1 no loses ahs relic flow text,incr qtz chalced vns and vug-fill. Dacite-fault breccia:dacite, 't bass lt,andes, rhy clasts,dec a 4c en T In 300 1! --- 1 411 alter and incr ang, fresh T Out - 300 p0 p`T -t-1fi0 appr,com pryox/hem slicks a, dumpit5 r aphan It gry-brn tuff. Dumped 115 * 35 bbls in 122 1- sand-tra to clean its. =67 degF Drill 20" hole to 2890'. Run 70 jts of 16",84% N-80 casing to a depth of 2885'. Drill ahead with 14.75" bit t/2910', draw works break down. Repair draw - - --- no losses - works and continue drilling -I on 9/28/09. '. Rhyolite:It-dk gry,pink,purp, v fn -fn gr,pred hd,loc v hd, porDh,loc slicks,loc zeo B 7°/78 3003' qtz amygds,mnr qtz vng 6 0.53 deg -Chale emygd s,r-mnr cele vng, 525w log r-mnr pyr,mnr-cam chltzd grs,com aeric, absnt-abun clay,intrbdd w/Andesite. j Rhyolite:lt-dk gry, brn,v In gr,com sucr txt, mod -well def 63/87.._. 3097' _ gr bndrs,hd-v hd,loc zeo 8 0.66 deg qt2 amygds,r-mnr k -,,,r -Com S1E qtz vng B emygd fill r disagg euh qtz w/conch frac,v r calci vng,mnr-com seric,loc r epid, intrbdd w/Andesite:brick red, no lases grn-dk grn,v fn -fn gr, mod no- d,br itt,mnr-com zeo B ch alc r amygds,mod-str altd,r talc vng, amygds,w/t-abun Clay:wht, gry,pink,red,grn,v sft, , 3190' sticky. 190/94 0.48 deg S19N Bridged off f/3195' t/3323' j while RIH on 10 8. dump 130 bb Ship 130 bbls from sand tra to sum . Rhyolite:lt-dk gry, tan,v In _ .. gr grndasa incr pIrph,t-com zeolite B qtz amygd 6 fi11, _ I com ser mica,incr cont clay 1 97/102w/milled, 3285' rndd text,t-com _ S69W talc vns,t-mnr chi alt Andesite. Dacite-Tuff Fault:approx 50 - no losses 70% tuff -clay w/ milled frags of Andesite,Dac ite,Rhyclite, abun qtz B zeo amygd,r jar 3380' xstals,clay v sft 8 sticky, 0.23 deg S89M 104/108 Rhyolite Fault:brght red-org v sft, Hem -stained cly 30-40%, fn-grn, brn-tan-gry rhy frags 50-60%, mnr Hem -stained Andes no losses w/ flow band and r. slickens. 3475' gain and loss tl',35 ., from tubolaff-cla fault. 0.07 deg II S71F Rhyollte.lt gry-gry,grn gry, hd-v hd,v fn gr,br itt,com zeo & qtz/chalc amygd,mnr qtz vng g & amygd fill,tr-mnr talc vng, IO °} loc r disem pyr,tr-mor chlor, dump 90 bbl mnr-com seric,r-mnr ylw/grn 00 RO P0 w c Pay A_ 1 GhCh_E T In 30 P I 40 epid,tr-abun clay,w/Ash Flow - X,B 80 o - T Outa 300200 P T 1600 Tuff/Clay:lt gry,red,grn,sft, contains clasts of Andesite & 3570' Rhyolite,ucc rndd grs 0.25 deg r" �• I - N2E I (reworked Tuff). TI- Ship 90 bola from sand trap to sump at 3535' & 60 bbls at 3565'. 35 bbl ain loss f 3464' t 3475'. !130/09 AES. $ Rhyolite:lt-dkgry,grn,tan, ySW no losses hd-v hd,v fn grn,com grn ,;v;v. or w zeo filldk,tr-mnr Calc vng,tr-mnr chlor,mnr-com ser, �444y r-mnr epid,tr-mnr clay,com w , 113 19 1 mag.tr-60% Ash Flow Tuff zncr /OB 511k w/ depth:lt gry,grn,v aft, 2PM 57 496 contains rndd clasts of Andes ;PM 272/90 ::: & Rhy,r-t PY. 'g 3759' Ship 38 bola from sand 0.35 deg trap to sum . 1 '• 3820'-3830'.Rhyolite-Ash ne/1 z3 Tu ff:30-401 Rhyo1ite, 40-50% $ Ash-Tuff:br ick red/pink hem a stain flow bre cc w v rndd cI ats,abun dk gry, red hem mag,mnr slickn reworked tuff clasts. no losses Rhyolite:lt-dk gry,grn,gry, hd-v hd,v fn gr,tr-mnr zea & chalc fill,intrbdd w/Tuff/ ' Clay:lt gry,red,grn,sft,com clasts of Rhyclite,intrbdd vv vv w/Tuff:wht,lt grn,pink,red, dO com mottled app,mod hd-hd. dump 125 bbls IS 125 bola from sand 3948' tra to Sum . t 0.53 deg I N87w Rhyolite:lt-dk gry, grn gry, brn,hd,tr-mnr zea amygd, int rbdd w/Andesite:red,mod hd,incr hem altn/s tng 120/125 1 f/4000' t/4030',iner Clay f/4010' t/4030': red,pink, grn,sft,sti cky;decr hem `- --altn & clay at 4030'. 4043' No R t 0.65 deg N _ Ship 50 bola of mud to R t Slow -� -- zt -- -- T— - lost «rculat i sump f/4050' t/4054'. Lase XOB 36k4RG:� -- R 75 circulation at 4054'. PM PP 1200 " I _ las ng, -280 Begin adding water and SPM 35/65 q,ga I LCM, drill ahead with yy,<5a5gge artial returns. --- _ N 9 _�__ losi-, `180 boh_-- $ rr v Rhyolite:lt-dk gry,grn,tan, 10/1/09 AES v hd,ang,tr-mnr wht,grn zeo ----fill,com dissem mag,intrbdd v w/Andesite:red,brn,dk gry, vv relic phenos zeo filled, 4 lasing -16 bph_... ___ abund mag,hem red alt,sub y sv rIn ,m In %TL-Tuff:gry,grn, pnk,sft,cum zea zlt & coat. a>�K, GAP 4akuv Stopped circ before 4230' > axvs4�uv __. N aaaGkauv 76/74 losing -85 h. ...... sample came over shakers. $ zan Rep air top drive and drill ahead while adding water ........... No sample and ICM. 10/2/09 ES - 4 0.70.e1 '.. 0 RD _ v P a l aAocb T In — 300_ S32W p 10 _ ', 4000 Rhyolite:lt-dk gry,grn, brn, 3 X T Out ------300200 P 16 hd,ang w/ fresh appr,mnr-com dissem mag, tr-mnr subhed epid xstals, tr turq,grn zeo, �454WSa. :. mnr frogs of XTL Tuff grading to Ash-Tuff:sft,gry,sticky w/ - r 73/69 lasing -70 bph tr relic flow texture. $ unpack temp out drain suction pit Attempt to pump LCM pill MO 4330 at 4315',clog suctionline. 0.93 deg "rain pits, repair, drill S27X ahead adding water and LCM. losing -75 bph _ aamu-- Rhyolite:gry,grn gry,brn,hd, suu .y v fn gr,bri tt,tr zeo amygd e losing -70 !>ph fill.tr-mnr aeric mica,t-mnr euh qtz,r-tr talc vng,t e0/e4 chlor,r-tr canary ylw epid ---- --- --- a - — - - -�I vng, intrbdd w/Andesite:red, XOB 50k RPM 70 'brn,pred red hem altn,mnr PP 1670 chalc amygd fill,tr-mnr zeo SPM. 70/7P amygd fill,tr-mnr qtz vng,r talc vng,r-tr epid,w/mnr- > �r soon Clay-Tuff:wht,lt gry, Pink.grn.sft. T ES H EN 10/4/09 AES 00 _ - ROP_0 1_ W08 80 g 95/90 losing -90 by .. -._. 4516' 0.86 deg Rhyolite:gry.grn ,hd-v hd,v -S28N -�-fn gr,r-tr dk grn zeo,com dissem mag,intrbdd w/ losing -80 mpn Andesite:red,brn,pred red i__-_� _.. hem altn,t qtz vng,r talc vng,t chlor,t yIw epid, losing -35 ph intrbdd w/com-.bun Clay- ii%Tuff:wht,lt gry,lt grn,pink, I sft,prob altd Ash Flow Tuff. _ 8_4/9a lasing -15.0 b I IStop mixing mud at ^4675, 4611 drill ahead with water. Nix 0.90 deg ILCM pills every 4 hours. S25W Rhyolite:lt gry-gry,grn,brn, losing -100 h v fn gr,hd,britt,tr-mnr zeo amygd fill incr to mnr grn t--- ` -pump dawn/u -- & turq vng & fill f/4630' t/4660',t-mnr qtz vng & sub - los in t�0 h euh qtz frags,r-tr talc vng 9 P & euh frags,t chlor,t-mnr :-. .. seric,r-tr epid,t-abun clay 79/93 4705' f/Clay-Tuff:wht,lt gry-gry, 0.93 deg sft,intrbdd w/Andesite:red, S37W lo v fn gr,mod hd-hd,pred hem losing -110 ph altd,intrbdd w/r Xtal Tuff: wht,cream,com grn & turq zeo fill. losing -135 ph Rhyolite:lt gry,brn,grn,v fn I�. gr,hd,tr-mnr dk grn zeo coat, tr subhed epid,abun disemm losing -165 h mag,intrbdd w/Andesite:hem- p 74/80 4801 alt red,brn,chl-alt gr n, fn - - 1.00 deg l grndmass w/porph pits filled 538W } w/wht,grn zeo,com XTL-Tuff: { Andes clasts,abun zee,sft. _ Iosin -155 h Stopped circ before 4840' BUT 93 de sample came over shakers. POOH, service top drive and perform BOP pressure test. L.. RIH and drill ahead with losing -4 ph mud. _93/96 — -- Rhyolite:lt-dk gry,brn,pred It grn,v fn gr,hd,tr-abun - I dissem mag,t-mnr qtz vng,t- I. com talc vng & euh frags, mnr-com chltzd grs & chlor eeyA 0Ae ce 50 f. T In-- 300 I_ 400C altn,r-tr seri,r-mnr epid, 50 7 Out 101110 16-- intrbdd w An es3 e:orng-re , mod hd,com slicks,pred hem pump 1 - stnd,loc intrbdd w/XTL-Tuff: pump 1 up - losing '60 ph---wht,pink,sft ,crumbly,dom za0 r-tr dissem pyr,tr-com 4992' e3/Be clay from Ash Flow Tuff:wht, U:13 deg - It gr y,sf t, ash mtx, mnr zea S25W & qtz amygd 8 rndd cla.I:o II. pyr in mtx,mnr mag in ash - clay. u' dump 47 bbl WOB 44k o RPM 73 PP 1566 - _ SPM 70/71 I dump 55 bbl! 1104 9 hr HCG'A CQ 14,75" 10/6/09 AES o S 00 _ - ROP_0 1_ W08 80 g 95/90 losing -90 by .. -._. 4516' 0.86 deg Rhyolite:gry.grn ,hd-v hd,v -S28N -�-fn gr,r-tr dk grn zeo,com dissem mag,intrbdd w/ losing -80 mpn Andesite:red,brn,pred red i__-_� _.. hem altn,t qtz vng,r talc vng,t chlor,t yIw epid, losing -35 ph intrbdd w/com-.bun Clay- ii%Tuff:wht,lt gry,lt grn,pink, I sft,prob altd Ash Flow Tuff. _ 8_4/9a lasing -15.0 b I IStop mixing mud at ^4675, 4611 drill ahead with water. Nix 0.90 deg ILCM pills every 4 hours. S25W Rhyolite:lt gry-gry,grn,brn, losing -100 h v fn gr,hd,britt,tr-mnr zeo amygd fill incr to mnr grn t--- ` -pump dawn/u -- & turq vng & fill f/4630' t/4660',t-mnr qtz vng & sub - los in t�0 h euh qtz frags,r-tr talc vng 9 P & euh frags,t chlor,t-mnr :-. .. seric,r-tr epid,t-abun clay 79/93 4705' f/Clay-Tuff:wht,lt gry-gry, 0.93 deg sft,intrbdd w/Andesite:red, S37W lo v fn gr,mod hd-hd,pred hem losing -110 ph altd,intrbdd w/r Xtal Tuff: wht,cream,com grn & turq zeo fill. losing -135 ph Rhyolite:lt gry,brn,grn,v fn I�. gr,hd,tr-mnr dk grn zeo coat, tr subhed epid,abun disemm losing -165 h mag,intrbdd w/Andesite:hem- p 74/80 4801 alt red,brn,chl-alt gr n, fn - - 1.00 deg l grndmass w/porph pits filled 538W } w/wht,grn zeo,com XTL-Tuff: { Andes clasts,abun zee,sft. _ Iosin -155 h Stopped circ before 4840' BUT 93 de sample came over shakers. POOH, service top drive and perform BOP pressure test. L.. RIH and drill ahead with losing -4 ph mud. _93/96 — -- Rhyolite:lt-dk gry,brn,pred It grn,v fn gr,hd,tr-abun - I dissem mag,t-mnr qtz vng,t- I. com talc vng & euh frags, mnr-com chltzd grs & chlor eeyA 0Ae ce 50 f. T In-- 300 I_ 400C altn,r-tr seri,r-mnr epid, 50 7 Out 101110 16-- intrbdd w An es3 e:orng-re , mod hd,com slicks,pred hem pump 1 - stnd,loc intrbdd w/XTL-Tuff: pump 1 up - losing '60 ph---wht,pink,sft ,crumbly,dom za0 r-tr dissem pyr,tr-com 4992' e3/Be clay from Ash Flow Tuff:wht, U:13 deg - It gr y,sf t, ash mtx, mnr zea S25W & qtz amygd 8 rndd cla.I:o II. pyr in mtx,mnr mag in ash - clay. u' dump 47 bbl 1 o - _ dump 55 bbl! No Returns li /� NolReturns losing - losing -110 0/7-10/.._- �' I 6966 s--� 5180' 0.9_ deg M%18-0% 14.75" oWVWI _ BU =79 degF - r. relic txt, t-mnr q11 vng,com- i 73/7 no to s es losing -170 `� ,a5�5.{.p• dump bb 0 s bph •�•�F�•e dump 5 bbl AES I o dump 47 bbl { Rhyolite:dk grn,brn,v fn gr, - _ dump 55 bbl! hd,mnr It-dk grn zeo,pred /� seric altd:wht,v It grn, losing -110 bpp opaque,firm,waxy,crumbly, 5180' 0.9_ deg C `� blchd a pp,mnr mod well def - 525w / relic txt, t-mnr q11 vng,com- 73/7 losing -170 bph� abun Calc, mnr chlor, abun losing -145 bph seric,loc r-tr epid,mnr cIay,altn decr w/depth. eU =69 degF Grill f/5100' t/5216', POOH. M/U mud motor, RIH and drill ahead, losinl 150 b _ periodically pumping pills and high vis sweeps. losing 185 by Rhyolite:dk grn,brn,v fn gr, 5274' mod hd-hd,pred britt,occ - -- 0.60 de crumbly,tr-mnr dissem mag,r 63 70 S33W - dissem golden musc,tr-mnr dk losing 195 by II grn/turq zeo amygd fills clr gyps frags,tr-mnr qtz vng, - t-com talc vng & frags,t-mnr chlor,t-mnr ylw epid,mnr-com snut ;. pu p 2 strng altn:v It grn,firm, losin_ -210 b_h waxy,prly-mod def relic txt, brecc app,loc intrbdd w/ 5369', Andesite:red,mod hd,abun wht/ 0.6 peg opaque zeo fill,intrbdd w/Ash 55WFlow Tuff:wht,sft,ash mtx, '1d volume abun It-dk grn zeo clasts,w/ 57/63 losing `150 h tr-mnr Chert:pink,lt grn,aph, 4 v hd,shard app,r qtz microvng r dissem pyr. i Rhyolite:brn-red,lt-dk gr ""lasing -760.bph gr,hd, fresh app rn,r gld dssem musc,com wht, dk grn zet,tr- -- cam dissem ma g,tr-mrn qtz vng - t-com cal vng/coat, t-mnr chlr {S tr-mnr epid xstal,r clr,e uhed E gyps xstal,intrbdd w As Tu 65/69 lasing -135 Ph ___ It grn,gry,sft,incomp, m0tt MOB53k 18 apprn w mnr hem-alt Andes RPM 75 rndd frag,r dissem mag,r zeo. PP 1160 I SPM 0/1 I No Sample Drill ahead T/5556', twist ___ u Na Sam le _.. .,--- off, stop circ before 5540' 4107 /29 RRBR4 4, 1714 MD F losing -20 bph sample surfaced. POOH 5575' leaving 467' fish in hole. 0.71 deg Perform BOP test. RIH with S1 9E fishing tools, retrieve fish, POOH. M/U mud motor, - — --' FST psi101.71toa mgNew meg BHA, RIH and drill Orill ahead. Rhyolite:pred altd f/5560': IOO 0 u, v e >.s akcnIn— 300 1S1 ht,, It grn, aph,tr-mnr crs 1 WOB BO T Out 300 00 PVT - 1 9r brecc appr,sft-firm xy, no losses crumbly,loc abun wIt-dk grn 5669'. zeo emygd fil 1, tr elr euh ed i.. 1,02 deg gyps xtals, altn decr w/depth, S1W t qtz vng,mnr-com talc vng 6 lo51ht_ 5 h euh talc xtals,r dissem pyr, — — 8 — -- lot pyr emygd fill,tr chlor, tr-mnr seric,r-tr epid, r-tr clay,w/tr-mnr Marble(?):wht, i v It grn,aph,hd-v hd, wk talc. 10/15/09 AES losing -?0 ph jF._ Rhyolite:lt grn, gry, hd,ang, fresh appr, fn gr,com dissem 5764', III mag, tr hem, mnr wht,grn zeo 1.43 de fill, tr yel -grn translucnt S3E.. epid xstals,r qtz vns loc u =- 77 901 losing 40 ph brecc/alt,inc hydrotherm alt - m ---- ----w/depth up to 30%:wht,waxy, sft,brecc appr,com wht/grn zeo amygd,tr wk calcar vng/ '.. alt, incr concen Ash Tuff: It gry/grn/pnk,sft,sticky w/com dissem mag B r py,tr WOB 51k 5958', euhed clr translcnt gypsum. RPM 621.44 de S �.. Ship 165 and 195 bbls PP 1435 losih� I'ph; from sand tra to sum . SPM 105/0 dump. 16 9 9 s Drill t/5922', POOH. Repair " -_-- - -- top drive, perform BOP test 6ring}b" ump mine on 10/20. M/U mud motor and • _.. .. r.� _... _.._ _.. ..._ _.. BHA,RIH, tag bridge at NBa6 HCC -52 MD BUT=6R-degT-- 2898'. Ream to bottom and drill ahead periodically 5953' um in ills. 1.60 deG S2W ------ •q lasing -40 bph trap du55 bbl p s Ship 55 bbls from sand �'4'r lasing ^30 tlph i to Sum _- ,71/77 10/23 AES Ship 100 bbls from sand dump IOR bb s tra to Sum . .... 6047' m 1.98 de 512W _---- - Rhyclite:lt gry, grn, hd, ang, �.. tom mag,com zeo,tr epid,mnr losing 0 ph chl alt,hydrotherm/calcar alt up to 20%:wht,wax y, sft, wk ca Icar, com zeo amygd,tr o. ? ''' 77/B3 losing -30 bph dissem py,r brew appr, o intrb 1010 w/Andesite:red,fn �k5 - I gr,mod hd,wazy,britt. bring bo h pumps nl' e '4 6141.", d mp 1W b 'le Ship 100 bbls from sand 2.32 deg tra to sum . 513W _ Rhyolite:lt-dk gry,grn-dk grn, brn,pred fresh app,pred v fn gr,cem-abun fn-crs gr, >r - hd, britt, com brecc app,decr Quick to D drive repair _ MO u, r r ../go losing -20 alto M/depth,eom mag,mnr-cam WOB 50k o ... pump. dew zeo,r-tr euh gyps xtals9 RPM 80 vng,tr qtz vng,mnr-com talc PP 2485 ��.. " ._.. ........ a-__ _... 6235 . vng,r-tr dissem pyr,mnr SPM 70/7$ �e �,, � 2.09 deg I chlor,lae ser ic,tr epid,tr- ' - 514W mnr clay,intrbdd w/Ash-Flow N — — --- - Tuff:lt gry,lt grn,pink,sft, w/tr Chert:gry,purp,aph,v hd. Intermittent pressure drops due to mud additives. 94/99 losing -20 ph 6329' Rhyolite:lt-dk gry,grn-dk 2.56 deg grn,brn,pred fresh app,pr ed . S14W 'I fn gr,hd,britt,up to 10% 100 ___.. ROP -- WOB O o• w 80 g - 4 v v a r s s ac cn c _ T I n T Out -- 300 300 P OO P I— --_-' T — -- 16DO atd app:wh t,lt grn.waxy, firm-mod hd,com-abun brecc 0/24 AES use = app,tr-mnr zeo amygd,intrbdd w/Ash-Flow Tuff:lt gry,lt grn,lt pink,sft,crumbly,mnr I, 99/109 lasing-25'b ph I dissem mag,w/r-tr Chert:gry, --I purp,aph,v hd,w/tr-mnr euh gyps blades/xtals. I. 6420' J}# / } 2,60 deg rrrx�rxxxxxi mx�rnnrm!: xxxxaxx chlor tr epid,tr-mnr clay, vxmxx crumbly,tr-mnr frogs of xruxkxxxxay I �I ur raxx�� grn,brn,red,pred ltd app, rxxxxxxxar vburnr�rxx»" rwunndnex� rrx' �i. �� xxx�irxxxi. I Drill T/6974',lose circ, — ` ' xxxxxxx rxxxi 78/94. xxn NIPPON 11M �., x I mxxxxxxar axxaaxxxm 72/74 I f Rhyolite::ryjmd,ho-Ic�f,' IImew tr. 1SWES brittc" dis— ' 't M. :Rhy. .. II t 5 11 HC - 2/175' 75" .AES 3#15 AES pump swee Rhyolita:gry, mad hd-hd,com f ill,com chl/hem alto 7560 s,abun dissen mag;loc str B 32k M 74/mud m alto to 30X at gry,v sft, 942 M � 19 AES' - chl/hem altn,r qtz vn,r ~t d losing -3 i o _5 m 1291 2/21 AES o- 0 0/mu m d 2170 1 75/69 v S ROP — MOB .2 AES _.. _..- _. 7 HC HCM5072% 9.875" II 63/mud motor 2231 68/63 losing -6a ph pump swee Rhyolita:gry, mad hd-hd,com f ill,com chl/hem alto 7560 s,abun dissen mag;loc str alto to 30X at gry,v sft, � 5741 ppump ;we - chl/hem altn,r qtz vn,r losing -3 ph talc vn,r pyr,r anhyd rn,tr- mor chl.rtzd mafics,r epid pump Iwee - amygd,v r euhed gypsum, 11/19 OW -112 degF Make sidetrack:set plug at OUT -109 deep 7635',RIH with whipstock, '., setear 1,,R"'with fishing tools, latch on fish ,whip - no lasses stock broke free chase downhol e,hook fish,P00H,re- build whipstock,RIH,set whipstock at 7568', RIH with atof,reIH with fishing tools, retrieve fish fishing 97 1 0�_:5 losin b .� Nill window to 7599, drill ahead to 7616', MWO failure, POOH,replace MWD,RIH and , directional drill ahead. C PyA El T -50 In —!300 D P - T- ut -. 00 P 1 Rhyolite At-dk gry,grn,nod 7760' htl-hd,crs gr,xln incr crs w 8.52 deg dept h, com zeo, chlartzn B hem S22W� blehs,abun dissen mag,r-tr losing -25 1ph gtz,r talc vn/yugs/rplcment, tot/toe sii4i es ;loc Arg :ltd r euhed qtz v0;1:f - --_add— to 5O%:lt gry,v sft,sticky, psi dap- addi vas con tlissen mag,r anglith clast,r flYPs 6 anhy;r Nafic 7852' Breccia:brn,red,ln gr hem '. 9.00 deg matrix w/sub-rndd clast Rhy 5171w/zeo,chalced,8 qtz rplcment. psi drop -using ne Pump bring both pangs online Grill T/7881', lose psi, lasin 0 p POOH to examine wash out at . build1pit v me jar cox, replace stand and '; aur=l oz degF _ drill bit, RIH,drill ahead. multlple p 1 sslIdue to dump i g additive II Rhyolite .It-dk gry,grn,nod lasing -15 hd-hd,fn-crs gr,sucr appr, mod-com zeo fill,tr-cam 7950'. chlartzn B hem blebs,mod hem _ 10.10. deg alto w r assoc ser al tn,tr S4Wcrs gr euhed epid xtls,com- :bun tlissenmag;loc mod str- v sIr argil Iic alto to 65%; It gry,lt grn,org,lt red,v _ I_ 93 tt2 _. I _ _..... sft B incomp,britt,cpa dissen mag,tr-com loc chi 8 hem altn,mnr rndd-ang lith cl as t; r-tr mag Brx:r.d-brn,v fn gr losing -25 h matrix w gtz,zeo, chalced 8040' amygd replacement of phenos, 9.65 deg It qtz vn,r-Ir talc vn 8 mod S5E calcar altn,v r anhyd xtls. build pi ume cold water Added ^20 h _ Rhyolite:lt-dl gry,grn,pnk, build pit v mod hd-hd ,fn-crs gr,suIt 8132' appr, tr-com zeo fill,mrn-stg pervaa chlortzn,mrn-stg 9.23 deg pervaa hen alto, r-tr chlor 521E -. mica,tr crs gr euhetl epid xtls,com-abndt dissem mag,v r euhed anhydrite xtls,r-tr drusey qtz vn,wk-mod Dervas silic altn,r-tr talc Vn, wk loc calcar alto, l:C atg-int t 97[109 losln� -30 h gillic altn to g0%:lt gry, g red,v sft,hritt, sticky. I build pit v ume co dissem mag,tr-com lot stg cold Water Adder 8227 chl B hem altn,mnr rndd-ang 9.64 deg lith frags;r-tr Andeszte:brn- S19E red,fn gr,hem grndmass w/ qtI _ B zeo saygd rp lcmnt.wk calcar altn;r Crystalline Tuff:lt brn,tan,aphan grndmass,nnr qtz a feld phenos,r zea fill. '97/109 lasi ^30 h Najor drilling hreaks 8321':. F 9310 T 8332 u to 69' hr. 9.06 deg.. S22E Drilling break up to 84' hr F 9378 T 8384. V, Co1d Neter Ad— build pit. 1 me 97/no losing, -30 6 h Rhyolite.lt gry,grn,hd,fn gr, variants temp-avt build .pit v mott appr,wk-stg lac hen B '..cots water aaaey4 8416' ,1, chlor blebs,perras silic alto 9.42 deg lot v stg erg alto to 40%:lt 523E gry, grn,stt,stI ky,r 11th ' can ya cls s-11 0 T in — .0 4000 frags,eom tlissem mag,r %tln ,.' ._ T qut — 300 200 P T 16-. Tuff.brn,granulr,chlor/hem I_ stng,r calced anygd,r euhetl gyps xtlsh,v r talc frogs. BUT -89 aegF �rill T/8481', lase psi, H to examine, wash out losing ^35 h ---- joint M9, replce8511 buil el lace bit, drill eheatl. 8.79 Beg Rhyolite:lt-dk gry,grl pnk,v S20E hd, to gr, su cr appr,perves mad sil is B hem altrn,wk chlortzn ---.--.- blebs,r-tr euhed qtz vn,mnr- _ con zeo fill,com tlissem mag, r -cam euhed cal[ vn,r euhed gyps,r talc,:rglzc aItn to 59 r Antlesite:brn-red w/ qtz % zeo fzll,r %tin Tuff:lt brn, �_. 8]/94 lasing -40 h hd,aphan,feld 6 Rhy [lasts. 8605' 8.16 deg ) Grilling break up to S22E 79' hr F 8589 T 8592. 15U RRB41 MOB- 14k u 2/25 AE d RPM 45/m Gtor PP 2330 SPM 75/68 m i 120'/14. rs #.1F -"L -30S 9.875" 9Z3 2/26 AES 00 OP -- 0 OB 80 1.B371 8 PM 70/mud mat 'P 2532 ;PM 77/68 1/27 AES m B / e hrs !ts 36k 64/mUd mo 2440 75/66 P/28 AES 19 1 EP5783 (O%-28). .875" AES rill T/8669', POOH to '.BOT=84 degF huilding p u e window to repair Nater losing -t o5t6}n tank, RIH, drill ahead. I �j ISI 1)1/85_ .4 8698' -- Rhyolite:lt gry,grn,tan,hd, In 8.83 deg S20E gr,sucr appr,pervas mod silk B wk ca lc altrn, tr-mnr chlor I, altrn,mnr net bleh,tr-mnr euhed qtz vn,tr-Com euhd Calc II ' vn, tr euhed epi d,r-Com chlor mica-incr w/depth,tr euhed gyps xtls,com dissem mag,r dk Cold Mater Added buildingi pi l grn serp w/slickens,com zeo fill,r pnk anhydrite vns,mnr- lasing -55 by r argillic altrn-dec w/depth, ' I I�L�_ 81193' 8794' And%site: dqk red, In gr 8.40 deg A-mnr rndmss w/ Com tz, zea 8 Feld, S20E phenos,r ang Rhy Clasts. '.. building pi of a Drill T/8824, POOH to '.. window to perform BOP test, RIH, drill ahead. 8888' 7.93 deg S20E Drilling break F/8892 I L_ _--._L__L g6/p7" lasing -60bph T 8900 u to 44' hr. cold water Added building pvol ume ' 1 lel .water Added huilding Drill T/8944', poor ROP, POOH to replace bit, RIM, drill ahead. 8982' '.. 7 deg 52.715E 1 75/87 losing -45 p Rhyolite:lt gry,grn,cream,tn, , hd,fn gr, su cr appr,r trans- lucent any as mod-stg silk ' _. wee - pump- p u Shp.. s_pm altrn,tr mod chlortzn B hem altrn,r-tr euhd qtz vns,r-tr euhed Calc vns, tr euhed epid, 9078''. r-tr euhed gyps vns B xtls, 7.16 deg com-abndt dissem mag,r-tr grn 519E serp w/slickens,mnr zed fill, -I I e6/97 losing -40 ph r salmon -colored anhydrite - building pi volume frag,r amoph talc;r aphan Ash p C P Py A Cis GA.GhEC 1 In 300 P -- 40 Tuff w/tr grn lapilli;r qtz 50 T Out -- 300 00 P 4— 16 brx w/ ang Rhy clasts; r-tr argillic alt to 20% at 9100'. huilding i v„ ume-_. 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BUT=94 deg pump sweep I Rhyolite at grn,gry,hd,spckld C.ld water Added building -pi--- line - appr,stg-int silic altn,mod- stg chlor altn,wk calcar altn '. com dissem mag, tr euhed epid, -- com zeo fig ;2-10% Breccia.ang 9455''.. Rhy clasts in qtz mat rx;tr- 8.37 deg 10% %TL Tuff: It gr y, tan, purp, S1 5E fn gr, mod hd,com qtz lapilli; r-101 Argillite:blk,mad hd, phylc 5hn,intrlam w/r py;r -tr 81196.E .. euhed gyps,r-tr serp w/slicks .. r qtz B talc vns,r anhyd frog r chlor mica,r euhed py. Cold Meter Added Drill T/9525', lose psi, POOH to examine, wash out 9549• at 1847, replace joint, 7.76 j1e9 -- - RIH, drill ahead. 818E cold pater Added build#ng pt v lunge Grilling break F/9580 JOT/9584 u to 40' hr, 69 Bt ldsin -40 h --- Drill T/9603',Mud Motor Cole .tar dded failure, POOH, replace Mud Motor, MX0, and Bit, RIH, drill ahead. Rhyolite:lt grn,gry,hr,spcklc 9651' appr, trenslucnt,med gr, parva: 7.68 tleg 521E stg-int si lit altn,pervs mod - l t stg chlortzn, com dissem mag, '', tr, ep id,r feld ph a nos,;mnr tc los i - $Q 9bu11d h - P h lu e ---..- 10% X L T Tuff : p u 9 p ,tan , m P d h d, brit,com dissm lass lapilli, 6 V o Cold Water Added r mafic xtl,wk flow txt;com- pump weep 10% Breccia:ang,med gr Rhy clasts re -worked & cemented; ........ ...._ r Ae. 1 41y.�CTI $5/98 } losing -55 Qt o 4, Avee tr serp w/slicks,r euhed qtz Calc vns,r py, r gyps xtls. Drilling break F/9688' T/9755' up to 69'/hr. Reaming wall cave-ins, (fault?) F/9775' T/97921 .ault:mix of lg,rndd frags of Zhy,Tuff,Brecc & Graywacke w/ ibndt slicks,-Rhy:pervas stg ;ilic & chlortz,com Qtz Brecc i/ang Rhy clasts in qtz,epid iatrix;Ash Tuff:cream,tan,moc id,britt,com glass lapilli w� 'low txt;Grywcke:gry,brn,org- •ed,mod hd,crs-v fn gr,wk-stc :low txt,r py,tr serp,r gyps. Drill T/9880',POOH to window, perform BOP test, RIH, drill ahead. IDrilling break F/9960' T19978' up to 27'/hr. Vol. 16, No. 39 Week of September 25, 2011 Providing coverage of Alaska and northern Canada's oil and gas industry http://www.petroleumnews.com/pnads/I58258341.shtml Geothermal meltdown? Wesley Loy For Petroleum News Naknek Electric Association's troubled quest to find and develop a geothermal energy source appears all but dead. The small Southwest Alaska cooperative intends to sell its drilling rig and pay its unsecured creditors a dime on the dollar. That's the upshot of proposed reorganization plan NEA filed Sept. 15 in U.S. Bankruptcy Court in Anchorage. The co-op filed for Chapter 11 bankruptcy protection from creditors on Sept. 29, 2010, due to problems with the geothermal drilling program. While the reorganization plan holds out some hope the program can continue contingent on federal grants coming through — it seems the end is nigh for NEA's attempt to find a cheaper way to make power. "Going forward," the court papers say, the co-op "will concentrate, again, on the diesel generation of electricity." The reorganization plan is subject to a vote of certain creditors, and a judge's approval. Search for alternatives NEA serves the Bristol Bay area, known for its enormous summer runs of sockeye salmon. It was incorporated in 1949 and began distributing electricity in 1960. It is a 0 0 nonprofit business, owned by its members. The utility has about 700 members and 1,100 meters in and around the villages of Naknek and King Salmon. NEA's major commercial customers are fish processing plants. It also has an important wholesale customer in the U.S. Air Force at King Salmon. In the 1990s, NEA began looking at alternatives to diesel -fired power generation, including wind, coalbed methane and geothermal. Interest intensified as the co-op's diesel costs spiked from around $1.20 per gallon in 2005 to more than $4 per gallon in 2008, says the disclosure statement filed with the proposed reorganization plan. That led NEA's board to "direct management to aggressively pursue a geothermal power solution to the high cost of diesel power generation." In early 2008, NEA bought a 120 -acre drill site some 17 miles outside of King Salmon, and the following year bought an oil and gas drilling rig. It began drilling its first exploratory geothermal well on Aug. 16, 2009, the court papers say. But complications soon obscured the vision of multiple productive wells driving a geothermal power plant. Problems set in poi After drilling began, the U.S. Department of Energy said the well wasn't eligible for grants, as no environmental assessment had been done for the project — a requirement NEA was led to believe wasn't necessary, court papers say. Another setback came three days before drilling began, when regulators with the Alaska Oil and Gas Conservation Commission told NEA its exploratory well would be regulated as an oil and gas well rather than a water well. This meant NEA "would need more robust blowout preventers, and would have to use heavier drilling fluids than it had intended," court papers say. In December 2009, at a depth of 11,218 feet, a bit broke, forcing drillers to attempt a sidetrack. The first sidetrack failed, but a second was successfully drilled to 11,387 feet, the court papers say. The change of plans with respect to drilling mud would prove a bigger problem. On the advice of a vendor, the court papers say, NEA used barite, a dense mineral commonly used in heavy drilling fluids. After drilling, the well refused to flow under its own pressure, preventing reliable testing of the well's geothermal strength. NEA's experts believe the barite drilling mud clogged the well, and despite the use of a large air compressor to try to flush out the mud, "the well continues to stubbornly resist cleaning," the utility's Sept. 15 court filing says. Financial wreckage NEA's disclosure statement says costs associated with the well "were substantially greater than had been anticipated." By the Sept. 29, 2010, bankruptcy filing date, NEA "had incurred approximately $40 million of debt that was in one way or another associated with the geothermal project." In 2008 and 2009, NEA obtained commitments from federal agencies for about $18 million in grants or awards, but has received less than $3 million, the disclosure statement says. Among the utility's several dozen creditors are the National Rural Utilities Cooperative Finance Corp. and oilfield service company Baker Hughes. Unsecured claims total $28.5 million. The disclosure statement says the utility's diesel power generation property is worth $6.2 million, and the drilling rig is worth about $11 million. NEA bought the National 1320 rig in Eastern Washington in 2009 for $8.5 million, and made $3 million in winterization and other improvements. More drilling still possible NEA's reorganization plan includes several major components. First, the utility will continue to operate. It's unlikely state utility regulators would allow a halt in service and a "piecemeal sale" of the co-op's assets, NEA's disclosure statement says. The co-op proposes to sell the drilling rig and accessories, but retain the geothermal property including the wellbore. Proceeds would go first to secured creditors. NEA also proposes to pay $3 million over 60 months to unsecured creditors. This would equate to about 10 cents on each dollar of claims, the NEA disclosure statement says. The plan could be amended, however, should the Department of Energy release grant funds to drill another sidetrack to confirm the geothermal resource, court papers say. The payment schedule could change depending on the sidetrack results. 0 If NEA obtains the funding to continue its geothermal exploration and development, unsecured creditors could receive more money if the financing can be used to repay debts, the court papers say. Rate stability a key goal A major consideration for NEA is how to cope with the debt without running off its large commercial customers, the fish processors, court papers say. The utility faces a "tipping point" where these customers could abandon NEA if rates go up. The customers could use or install their own generators, or they could take fish elsewhere for processing during the summer months when the salmon run hits and when NEA sells most of its commercial power. NEA "believes that the rates it is currently charging members are very close to this tipping point," the disclosure statement says. "A loss of any load could easily trigger a cascade effect where increased rates lead other commercial customers to switch to their own electric generation or shift operations to other communities." NEA rates went up substantially in 2009 "to help offset the costs of the geothermal well," the disclosure statement says. The reorganization plan itself does not raise rates further, but the disclosure statement says "minimal increases in utility rates" would be needed to make payments under the plan. NEA "must balance the need to recover from rates sufficient funds to confirm a plan of reorganization with the risk that any increase in rates will cause members to elect to generate their own electricity," the court papers say. Vol. 16, No. 24 Week of June 12, 2011 Geothermal news heats up Troubled Alaska electric co-op taps viable alternative power source, experts say Wesley Loy For Petroleum News A small Alaska electric cooperative's quest to establish a geothermal energy source is finally generating some positive news. GeothermEx, a subsidiary of oilfield services giant Schlumberger, has assessed Naknek Electric Association's first well and concluded the utility is on its way toward a geothermal project that "can make economic sense." The GeothermEx memorandum was among papers NEA's attorney filed June 2 in U.S. Bankruptcy Court in Anchorage. The rural electric co-op, which serves the Bristol Bay area in Southwest Alaska, was forced to file for Chapter 11 protection from creditors in September 2010 due to cost overruns and other issues related to the geothermal drilling project. The court papers indicate NEA still faces much work, and tens of millions of dollars in additional costs, to get a geothermal power plant up and running. But the co-op sounds determined to take on additional debt and achieve an alternative to burning expensive diesel to generate power. NEA "believes it is in the interest of its members and creditors that it continue to pursue" a $50 million loan guaranty from the U.S. Department of Agriculture's Rural Utilities Service, NEA's court filing said. The loan would "permit the repayment of geothermal development debt and development of two additional wells and a geothermal power plant." Difficult first well The GeothermEx memo provides extensive detail on the troublesome drilling of NEA's first exploratory geothermal well, known as G-1. The memo also presents "the justification for drilling well G-2." "Valuable lessons learned while drilling well G❑ 1 will be used to drill well G-2," the memo says. NEA serves the villages of Naknek, South Naknek and King Salmon in Southwest Alaska. Like many electric utilities in bush Alaska, it must haul in diesel to run its generators. The co-op purchased a drilling rig for its geothermal campaign, and drilled the G-1 well in 2009 and 2010 at a site about seven miles northeast of King Salmon. The well was planned for 14,000 feet but full depth was never reached. After problems including the loss of several drill bit cutting heads in the hole at 11,218 feet, drillers bored a sidetrack to 11,387 feet. However, rock formations in the sidetrack were unstable and sloughing blocked the hole, causing the drill string to become stuck repeatedly. To keep the hole open, a heavy drilling mud laden with barite was used. Barite is a dense mineral commonly used as a weighting agent for drilling fluids, according to Schlumberger's online oilfield glossary. Despite this, the string ultimately got stuck and couldn't be freed, and the bit and part of the bottomhole assembly were left in the hole. After attempts to retrieve the equipment failed, a "fish" was left below 10,480 feet, making this the effective total depth of the G-1 well. The decision to use the barite -rich drilling mud was unfortunate as it clogged the fractures, reducing permeability in the production interval, the GeothermEx memo says. NEA was forced to bring in additional equipment to air-lift the well in an effort to clean out the barite. • Despite the drilling problems, the G-1 well showed hopeful signs. The well can produce geothermal fluid at a temperature of 190 degrees, and possibly as high as 235 degrees. At the lower temperature, the well has the potential to provide a net generation of about 325 kilowatts from each 1,000 gallons per minute of fluid produced, the GeothermEx memo says. At 230 degrees, the potential is about 550 kilowatts. While a temperature of 230 degrees is "relatively modest compared to other geothermal developments worldwide," NEA's geothermal project "can make economic sense" considering the avoided cost of generating power with diesel fuel, the memo says. 2,000 NEA's second geothermal wethat found expected n the G to goJewell, theeper, to lGeothe ermExnmemo says. higher temperature zone than "Having learned valuable lessons while drilling its first geothermal well with its own drilling rig, NEA is well positioned to drill well Go 2," the memo says. "The conductor casing has already been installed at the GO well site, and many of the elements required for this well are already on site, including the rig, nearly all of the drilling `tangibles' (wellhead, casing, etc.) and most of the cement needed to complete the well. NEA has developed a 920day drilling program, with the well costing an estimated $10 million." ing of a A "likely outcome" for NEA's project � � as the production ilott on well and G O lent stas the injection geothermal well doublet, well." But whether further drilling and construction of a geothermal power plant will proceed remains an open question, judging from the June 2 bankruptcy filing. Much apparently hinges on NEA receiving word by fall of whether the loan guaranty will be granted. t http://www.petroleumnews.com/pnads/22360333 I.shtml lb()^' to � Doo— \,4C) Geothermal project meets more adversity Alaska electric co-op, already in bankruptcy over troubled drilling program, says equipment bought to test well needed costly fixes a — L \ Wesley Loy For Petroleum News Trouble continues to dog Naknek Electric Association's geothermal drilling project. The small electric cooperative in Southwest Alaska has been trying to complete an exploratory geothermal well in an effort to find an alternative to burning expensive diesel to generate power. Cost overruns on the geothermal project forced NEA into a Chapter 11 bankruptcy filing on Sept. 29, 2010. Since then, the co-op has worked to secure additional funding and test its Naknek G-1 well, located about seven miles northeast of the village of King Salmon. But on April 16, the co-op's bankruptcy attorney filed court papers indicating that an air compression system purchased in Texas to work on the well had failed, requiring costly repairs. Equipment problems An Anchorage bankruptcy judge in December cleared NEA to take out a $1.5 million loan to continue work on its well. The work included lifting drilling mud and cuttings, and testing well flow and temperature to determine the hole's strength as a geothermal source. NEA used part of the loan to buy an air compression system needed for the job. The co- op acquired the system from Advantage Equipment Inc. in Midland, Texas, court papers say. But the equipment soon exhibited problems on the well site, the co-op contends. Donna Vukich, NEA general manager, sent a Feb. 12 letter to Advantage outlining the problems. "I am writing to seek a fair and reasonable settlement for unacceptable mechanical problems with the air compression system, and particularly the booster, that you sold to Naknek Electric Association in December," the letter began. "I will lay out the facts as we see them, and suggest how we might resolve the situation." Upon arrival in Alaska, the equipment needed servicing — an oil change, oil filters and fuel filters — and then proved difficult to start, requiring new batteries, an alternator and alternator belts, the letter said. Once put to work, the system wouldn't build the expected pressure, and the booster engine began stalling, Vukich said. After no more than 60 hours running under a load, the booster on Jan. 22 "made a loud banging sound," forcing a shutdown, she wrote. Her letter said NEA tried to remedy the problems with Advantage, but ultimately the co- op contracted with a Wyoming compressor company to repair the damaged equipment at a cost of $112,756 plus $36,500 shipping. Co-op seeks reimbursement Vukich requested that Advantage reimburse NEA a total of $121,256. The co-op enlisted a Midland attorney, Alan H. Meyers, to help with its claim against the equipment vendor. NEA has said in court filings that if the well proves viable, the co-op aims to line up millions more in financing for further geothermal drilling. Already, the Alaska Oil and Gas Conservation Commission, which regulates drilling, has approved a permit for a second exploratory geothermal well, the Naknek G-2 well. The co-op, in an April 19 court filing, indicated it will report on "the present status of the geothermal well" by May 2. NEA serves the villages of King Salmon, Naknek and South Naknek, all located along the Naknek River in the Bristol Bay region of Southwest Alaska. The co-op has just over U • 600 residential and business members, and serves major salmon canneries during the bay's summer commercial fishing season. Like many of the state's rural electric utilities, NEA depends on expensive, barged -in diesel to run its generators. NEA has asked the bankruptcy court for permission to borrow up to $6 million to purchase 1.5 million gallons of fuel needed to continue operations past mid-June. The co-op began looking at geothermal energy several years ago, as the boundary of the volcanic Katmai National Park and Preserve is just a few miles from NEA's power lines. 0 0 http://www.petroleumnews.com/pnads/425342365.shtml Troubled Alaska power utility forges on Naknek Electric, mired in bankruptcy, obtains permit to drill second geothermal well as flow testing continues on initial hole Wesley Loy LA is - For Petroleum News A small electric cooperative in southwestern Alaska has obtained a state permit to drill a second geothermal well. Meanwhile, work continues on the utility's first well — a project that forced the Naknek Electric Association into Chapter 11 bankruptcy reorganization due to cost overruns. The co-op is attempting to forge ahead in hopes of establishing a geothermal energy source, providing relief from the high cost of diesel to generate electricity. Naknek Electric serves the villages of King Salmon, Naknek and South Naknek in the salmon -rich Bristol Bay region. Testing first well A challenge for the utility has been perfecting its first well, to include flushing out drilling mud and cuttings and testing the well's flow and temperature to determine its strength as a geothermal producer. To complete the job, Naknek Electric needed to borrow additional money despite its bankruptcy filing. In December, a bankruptcy judge in Anchorage approved a $1.5 million loan from the National Rural Utilities Cooperative Finance Corp., a private, nonprofit lender based in Herndon, Va. The same lender financed Naknek Electric's purchase of a rig to carry out the co-op's plan to drill multiple geothermal wells. According to a "status report" the co-op filed Feb. 24 in the bankruptcy court, Naknek Electric used the loan to purchase, ship and operate a compressor and air booster to clean out the well. "Over the last three weeks, the Debtor has boosted water from as deep as 4,500 feet and expects to reach the 7,000 feet level and the slotted liner within the next week," the status report said. "The water being pumped from the well is very dirty — the Debtor believes that is a good sign." The report indicates it's not yet clear whether Naknek Electric is on a successful "geothermal path," or will end up with an "all diesel outcome." Permit for second well approved The Alaska Oil and Gas Conservation Commission, which regulates drilling, on Feb. 8 approved a permit for a second exploratory geothermal well — the Naknek G-2 well. But drilling has not yet begun on the second well, as the rig remains over the G-1 well while testing proceeds, said Erik LeRoy, an Anchorage attorney representing Naknek Electric in the bankruptcy case. "Within a month, we'll have the answer as to whether we have a viable well there," LeRoy told Petroleum News. The G-1 well site is a few miles northeast of King Salmon. Naknek Electric doesn't yet have the financing to start a second well, LeRoy said. But the co-op has mapped out a plan to obtain financing. In court filings, the utility has said it intends to apply for a $52 million loan guarantee from the U.S. Department of Agriculture's Rural Utilities Service. The co-op would then apply to the Federal Financing Bank, a government corporation, for a loan backed by the Rural Utilities Service guarantee, the Feb. 24 status report said. Naknek Electric filed for Chapter 11 protection from creditors on Sept. 29, 2010, citing assets of $10 million to $50 million and liabilities in the same range. Unexpected costs and other problems with the geothermal drilling venture precipitated the filing. The co-op began looking at geothermal several years ago, as the boundary of the volcanic Katmai National Park and Preserve is just a few miles from NEA's electric lines. Its vision is to build a 10 -megawatt geothermal power plant to supply villages in the region. The co-op's residential and business members in December took a vote signaling continued support for the geothermal project. Tc<al Fie o Anm-a (nT} 23c9 tiff a Uata Generalized Geology and 2D Smooth Inversion CSAMT/NSAMT Data 20.6 WC -11 tOOCC 17310 'M33 1.CLI) I'M •.3000 '2033 11CCO 1O3CO OLLV OOOO U 7000 C<tp •.CCC 4060 SOOO iCr✓J 1110 I I I I I I I I I I I I I 1 1 1 1 1 1 Alaska Earth Sciences, Inc. By: A. Angel 2/28/2011 2M3 Naknek Gecthe-m al Line 4 a^"I' InvOrsicr{ Mocal seebon 200 .Rf9 .KG -Ion i41a'n•� n � •1n -1jW .',— *R C! 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M(M air.. raxnarn RiA.r r�Iry1Mf.NSAl1-CSa ( rIV^c IrAT ?1 •Zoo ii IOC. �iNJ �' •IF:� 111 Rc^9rY.h=O•v, ap\Y=O41,OY1b!, e,yp1 Mgr 3 :� . � •sra .a•W sts M.: -�� •" .-- Naknex Electric Asaociallon a0" awo K Naknek Ge,othe-rral Line 4 •W 2D smcotn-Motel 1-u* Gn .pr ^a» I bry d 2yx CS4MTINSAMT Bata W Vol. 15, No. 49 Week of December 05, 2010 Providing coverage of Alaska and northern Canada's oil and gas industry Alaska utility's geothermal loan delayed Naknek Electric Association needs $1.5 million for well work, but some members oppose new debt for co- op now in bankruptcy Wesley Loy Iw -,--\ 15 For Petroleum News Naknek Electric Association is running into some resistance in its effort to borrow more money to continue a troubled geothermal drilling project. The small Southwest Alaska electric cooperative, which in September filed for Chapter 11 bankruptcy protection from creditors, wants the court to approve a $1.5 million loan to finish work on an exploratory geothermal well. But after a Nov. 24 hearing in Anchorage, U.S. Bankruptcy Judge Donald MacDonald held that NEA's motion for the loan could not be approved "based on the facts that have been presented," said a court memo on the hearing. MacDonald set another hearing on the matter for 2 p.m. Dec. 6. How much debt? Co-op members, at a special meeting scheduled for Dec. 4 in King Salmon, were to vote on whether NEA should raise its debt limit. Cost overruns and other problems have plagued the geothermal drilling program, pushing the co-op into bankruptcy. NEA mounted the geothermal project in hopes of finding an alternative to expensive diesel for generating electricity. Court papers indicate NEA already has almost $50 million in debt and vendor liabilities. Yet the co-op's articles of incorporation specify its indebtedness should not exceed $25 million. Because the co-op aims to borrow many millions of dollars more to continue drilling wells and build a geothermal power plant, NEA's leadership scheduled the special membership meeting to vote on amending the articles of incorporation to increase the R debt limit. Court papers NEA filed Oct. 29 said the membership appears to remain supportive of the geothermal project, despite the bankruptcy. The papers also said NEA believes it can execute the $1.5 million loan regardless of how the members vote. NEA said it needs the money to clean out drilling fluids and test its geothermal well, and to prepare an application to the U.S. Department of Agriculture's Rural Utilities Service for a $41 million loan guarantee. The membership meeting promised quite a debate, judging from the letters filed with the bankruptcy court prior to the Nov. 24 hearing. Several dozen members signed a letter objecting to the $1.5 million loan, saying the NEA board violated the debt ceiling and members weren't kept informed about the problems with the geothermal project. The letter expressed concern about rate increases to repay additional debt. Others, however, urged approval of the loan. David Lax, of Naknek, was among the supporters. "I believe that NEA sits on the verge of having the final information it will need to finance, design, and construct a working geothermal plant," Lax said in a Nov. 23 letter to the court. "The management of NEA, with the approval of the members, has slogged through the mud to a potential source of geothermal energy that could rid us of our dependence on diesel fuel and its unstable pricing structure." STATE OF ALASKA ALA_ , OIL AND GAS CONSERVATION COMION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other Q Abandoned ❑ Suspended[] 20AAC 25.105 20AAC 25.110 GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: _ 1 1b. Well Class: Development ❑ Exploratory ❑✓ Service ❑ Stratigraphic Test ❑ 2. Operator Name: Naknek Electric Association, Inc. 5. Date Comp., Susp., or Aband.: 9/15/2010 12. Permit to Drill Number: 100-488 3. Address: PO Box 118, Naknek, Alaska 99633 6. Date Spudded: 8/16/2009 13. API Number: 50-185200010000 4a. Location of Well (Governmental Section): Surface: 58.69902N 156.50394W Top of Productive Horizon: 10,433' Total Depth: 10,473' 7. Date TD Reached: 4/5/2010 14. Well Name and Number: Naknek G-1 8. KB (ft above MSL): 275' GL (ft above MSL): 15. Field/Pool(s): 9. Plug Back Depth(MD+TVD): 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- y- Zone- TPI: x- y- Zone- Total Depth: x- y- Zone - 10. Total Depth (MD + TVD): 10,473' - 10,433' 16. Property Designation: T17S R44W Sec 14 SW1/4 & Sec NW 1/4 SM 11. SSSV Depth (MD + TVD): 17. Land Use Permit: 18. Directional Survey: Yes ✓ No ❑ (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: (ft MSL) 20. Thickness of Permafrost MD/TVD: 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): Mud logs, Baker Altas Composite Logs to 9,912', Baker Hughes Directional Survey Logs 22.Re-drill/Lateral Top Window MD/TVD: MD 7568' TVD 7,564' 23. CASING, LI ER AND CEMENTING RECORD WT. PER GRADE SETTING DEPTH MD HOLE SIZE CEMENTING RECORD SETTING DEPTH TVD AMOUNT CASING FT TOP BOTTOM TOP BOTTOM PULLED 22" 106.5 # K-55 SURF 396.92' SURF 397.00' 26.00" 190 bbls 16" 84.0 # N-80 SURF 2,885.00' SURF 2,885.00' 20.00" 457 bbls + 4 Is top job 11.75" 60.0 # L-80 2,559.61' 7,860.00' 2,559.61' 7,860.00' 14.75 1$ SWelZis +_1& bbls squeeze W6k 8.63" 40.0 # L-80 7,668.13' 9,912.00 7,668.13' 9,912.00' 10.63" 285 bbls Z&e W64 7.64" 29.7 # L-80 7,316.70' 10,433' 7,316.70 10,433.00' 9.875" slotted liner 24. Open to production or injection? YesO No❑ If Yes, list each interval open (MD+TVD of Top & Bottom; Perforation Size and Number): F/10,433' T/7,650' is slotted liner - 1/4" x 2-1/4" 16 slots per 1 foot GOMPLEI';IJti ? TE ¢ 25. TUBING RECORD SIZE DEPTH SET (MD) PACKER SET (MD/TVD) 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 2,559.61' 50 sacks of cement squeezed into liner lap - 25 bbls 27, PRODUCTION TEST Date First Production: Currently Not in Production and No Flow Tests of Operation (Flowing, gas lift, etc.): Sh t In Date of Test: Hours Tested: Production for Test Period FMethod bl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24 -Hour Rate -� bl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): 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. ! OCT 2 0 2010 I RBD I S OCT 2 1,31' �� Form 10-407 Revised 12V2009 CONTINUED ON REVERSE Submit original only 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ❑ Yes 0 No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top None needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base None No leak off tests or formation integrity tests Glacial Moraine SURF SURF performed due to high loss circulation encounters. Meshik Volcanics 500' 500' Talkeetna Formation 3,150' 3,150' Cottonwood Bay Greeenstone Formation 9,800' 9,800' Formation at total depth: 31. List of Attachments: Mud logs, Baker Atlas Final Composite Logs, Direction Surveys 32. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: Stanley B rtr. Title: Company Man Signat Phone: 907-439-3999 Date: 10/5/2010 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 0 0 Naknek Geothermal Project - Well NG -1 Final Completion 12" (Nominal), 2M Master Calci 163/4" 3M x 12", 2M Spool 16" SOW ng HeadHead', 3M Casing 4 00 30 -inch Conductor Pipe (X-95) driven to 120 It 22 -inch, 106.5 #/ft, K-55 - R-8 Casing Cemented inside 26 -inch hole Q 397 ft 16 -inch, 84 #/ft, N-80, Buttress Casing cem. inside 17 -1/2 -inch hole @ 2,885 R 11-3/4 x 7 -5B -inch - TIW Liner f langer set @ 7,317 ft Casing window milled between 7,568ft and 7,590 ft 11 -3/4 -inch, 60 #/ft, L-80, Buttress Casing hung inside 11 -3/4 -inch casing ® 2,560 R cem. inside 14 -3/4 -inch hole ® 7,860 ft, 91DETR1,(.'6 DET IL ' HOLE DLAIETER-9.8-CINCH KICK-OFF i7iolU -.590 Fr inE» MAX. aN(A.E - 9.6 DEG. AZITRTTH -160 DEG. TD -11.38' FT fMD)-11,346IT1131 F18H LEFT IN HOLE -10.621 to 10.480 Fr (MID) --5.8 29:=Fr.L-80.5TL PRIMIR ITHRMAD WTNC DEPTH - -J1- rr DI NK LINER- -,31- to -.651 FT SLOTTRO LINRR- -.01 to 10.133 FT 8 -5/8 -inch, 40 #/ft, L-80, Buttress casing \\ \ hung inside 11 -3/4 -inch casing at 7,668ft \\ \ \ cem. inside 10 -5/8 -inch hole @ 9,912 R * \\ \ FP" Original 7 -112 -inch hole TD at 11,218ft GeothermEx, Inc. 2010 &I l/b . vu i Survey Depth (h) Incl (0) Azimuth Course (0) L th ft TVD ft VS ft Company: Naknek Electric Joh Number: 2644058 Calculation Method: Minimum Curvature Build Rate Walk Rate °1100' °1100' Tool Face Comments Field: King Salmon Magnetic Decl.: 15.95 Proposed Azimuth: 159.66° f: 0 Borough Bristol Bay Grid Corr.: nla Depth Reference: RKB 37.78 llv tt':V Well Name: Naknek G-1 ST2 Total Survey Corr.: 15.95 Tie Into: Surface 0 Rio- Naknek Ria 7 Taroet Info 7760 8.52 201.61 No. Tool Type Survey Depth (h) Incl (0) Azimuth Course (0) L th ft TVD ft VS ft Coordinates N1S ft EMI ft Closure Dist ft An DLS °1100' Build Rate Walk Rate °1100' °1100' Tool Face Comments 1 Tie in 7560 4.09 193.70 0 7556.90 -116.37 116.37 S 37.78 W 0 2 MWD 7760 8.52 201.61 200 7755.64 112.92 137.09 S 44.93 W 144.26 198.15 2.25 2.22 3.96 3 MWD 7852 9.00 197.31 92 7846.57 123.69 150.29 S 49.59 W 158.26 198.26 0.88 0.52 -4.67 56 4 MWD 7950 10.10 184.32 98 7943.22 137.57 166.18 S 52.51 W 174.28 197.54 2.46 1.12 -13.26 69 5 MWD 8040 9.65 174.53 90 8031.89 1 152.03 181.56 S 52.39 W 188.97 196.10 1.93 -0.50 -10.88 110 6 MWD 8132 9.23 159.12 92 8122.66 166.86 196.13 S 49.02 W 202.17 194.03 2.78 -0.46 -16.75 107 7 MWD 8227 9.64 160.90 95 8216.38 182.43 210.77 S 43.71 W 215.25 191.71 0.53 0.43 1.87 36 8 NIWD 8321 -9.08 158.32 94 8309.13 197.-72 225.10 S 38.39 W 228.35 189.68 0.74 -0.60 -2.74 144 9 MWD 8416 9.42 156.98 95 8402.89 212.98 239.22 S 32.58 W 241.43 187.76 0.42 0.36 -1.41 33 10 MWD 8511 8.79 159.77 95 8496.69 228.00 253.19 S 27.03 WI 254.62 186.09 0.81 -0.66 2.94 146 11 MWD 8605 8.16 157.60 94 8589.67 241.85 266.09 IS 22.00 W 267.00 184.73 0.75 -0.67 -2.31 154 12 MWD 8698 8.83 160.20 93 8681.65 255.59 278.91 IS 17.07 W 279.43 183.50 0.83 0.72 2.80 31 13 MWD 8794 8.40 160.36 96 8776.56 269.97 292.45 S 12.22 W 292.70 182.39 0.45 -0.45 0.17 177 123° F 14 MWD 8888 7.93 160.38 94 8869.61 283.31 305.02 S 7.73 W 305.12 181.45 0.50 -0.50 0.02 180 131° F 15 MWD 8982 7.75 159.42 94 8962.73 296.14 317.06 SI 3.33 W 317.08 180.60 0.24 -0.19 -1.02 0 133.8° F 16 MWD 9078 7.16 160.78 96 9057.92 308.59 328.77 SI 0.92 E 328.77 179.84 0.64 -0.61 142 164 139.2° F 17 MWD 9172 6.74 158.95 94 9151.23 319.96 339.45 SI 4.83 E 339.49 179.19 0.51 -0.45 -1.95 153 139.2° F 18 MWD 9265 8.66 158.46 93 9243.38 332.42 351.06 S 9.36 E 351.18 178.47 2.07 2.06 -0.53 2 141.9° F 19 MWD 9361 8.26 158.09 96 9338.34 346.54 364.18 S 14.58 E 364.47 177.71 0.42 -0.42 -0.39 1721141.9- F 20 MWD 9455 8.37 164.94 94 9431.35 360.10 377.05 S 18.88 E 377.52 177.13 1.06 0.12 7.29 87 139.2° F 21 MWD 9549 7.76 161.67 94 9524.42 373.26 389.68 S 22.65 E 390.34 176.67 0.81 -0.65 -3.48 145 139.2° F 22 MWD 9651 7.68 158.75 102 9625.50 386.96 402.57 S 27.29 E 403.49 176.12 0.39 -0.08 -2.86 103 141.9° F 23 MWD 9743 7.47 158.33 92 9716.70 399.08 413.86 S 31.73 E 415.07 175.62 0.24 -0.23 -0.46 165 133.8° F 24 MWD 9839 7.91 155.74 96 9811.83 411.91 425.68 S 36.75 E 427.26 175.07 0.58 0.46 -2.70 40.128.4- F 25 MWD 9933 8.43 154.69 94 9904.88 425.23 437.81 S 42.35 E 439.85 174.47 0.58 0.55 -1.12 17 136.1° F 26 MWD 10028 8.12 153.10 95 9998.89 438.83 450.08 S 48.36 E 452.67 173.87 0.41 -0.33 -1.67 144 131.1° F 27 MWD 10123 7.84 154.83 95 10092.97 451.95 461.93 S 54.15 E 465.09 173.31 0.39 -0.29 1.82 140 133.8° F 28 MWD 10221 7.64 158.24 98 110190.08 465.12 474.03 SI 59.41 E 47734 172.86 0.51 -0.20 3.48 115 131.1° F 29 MWD 10316 8.07 162.50 95 10284.19 478.10 486.26 S 63.76 E 490.42 172.53 0.76 0.45 4.48 56 131.1° F 0 • �°,1 Well Summary Report knek Electric Association, Inc. C��° N Well ID: G-1 Well game: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Operator: Naknek Electric Association Working Interest: 100-00% AFE Nos: API No: Spud Date: 16 -Aug -09 Location: Geothermal Well Reports for 06:00 on date shown 16 -Aug -09 Current Depth (ft): 120 Hole Drilled (ft): 120 Ave ROP: Current Ops: Continue Make up 26" BHA. Operation Summary: Rig up top drive. Change out chain on draw works. (13 hrs) Make up Bottom Hole Assembly. Circulate and clean out 30" conductor casing. (5 hrs) Wash down with 5" HWDP, cleano ut 30" conductor to 120'. (6 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 752,031 Well Costs ($): 752,031 Drilling Days: 1 Completion Days: 0 Workover Days: 0 17 -Aug -09 Current Depth (ft): 296 Hole Drilled (ft): 176 Ave ROP: Current Ops: Drilling 26" open hole at 296' Operation Summary: Drill 26" open hole from 120ft to 138 ft. (3.5 hrs) Circulate and clean cuttings from wellbore. (0.5 hrs) Stand back 1- std HWDP. Pick up & make up stabilizer, shock sub, and 2- monel drill collars. (5 hrs) Drill 26" open hole from 138 ft to 208 ft. (6.5 hrs) Stand back 1 -std of HWDP. Pick up and make up 1- monel drill collar, and 2- steel drill collars. (5 hrs) Drill 26" open hole from 208 ft to 296 ft (3.5 hrs) Comments: Mud Data: MW: 8.7 Viscosity: 120 Filtrate: 18.6 Surveys: None Daily Costs ($): 92,434 Well Costs ($): 844,465 Drilling Days: 2 Completion Days: 0 Workover Days: 0 18 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): 101 Ave ROP: 7.5 Current Ops: Run 22" casing Operation Summary: Review top drive procedures with Drilling Crews (3 hrs) Drill from 296 ft to 397 ft with BHI VertiTrak System. (4 hrs) Circulate and condition hole. Service Top Drive. (1 hrs) Lay down 1 -jt HWDP. Drop SS survey tool. (2 hrs) Pull out of hole with drill pipe. Stand back drill collars in derrick (5 hrs) Break down BHA, Recovery survey tool. Survey reading = .25 deg (2 hrs) Lay down 26" milltooth bit and VertiTrak drilling assembly. (1 hrs) Rig up casing crew. Pick up 22" casing with float shoe, float collar, and cross over (6 hrs) Comments: Mud Data: MW: 8.8 Viscosity: 78 Filtrate: 17 Surveys: None Printed: 12:06 15 -Oct -10 R/MBase Page: 1 of 98 Printed: 12:06 15 -Oct -10 R/MBase Page: 2 of 98 11- Printed: Z Well Summary Report knek Electric Association, Inc. Nr Well ID: G4 Well Name: G-1 ,E3 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Daily Costs ($): 39,079 Well Costs ($): 883,544 Drilling Days: 3 Completion Days: 0 Workover Days: 0 19 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): 0 Ave ROP: 14.4 Current Ops: Cement 22" casing. Operation Summary: Run 22" casing to 370' (10 hrs) Weld on pad eyes and circulating port on landing joint. (4 hrs) Run last joint of 22" casing to 395' (2 hrs) Secure pad eyes, cut off 10' of 22" casing to set false bowl and slips for runnning drill pipe. (3 hrs) Make up stab in tool on drill pipe. Pick up 12 jts 5" drill pipe. Run in the hole. Rig up cementers hard line from rig floor to cement truck. (5 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 154,543 Well Costs ($): 1,038,087 Drilling Days: 4 Completion Days: 0 Workover Days: 0 20 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): 0 Ave ROP: Current Ops: Weld on 21-1/4" test spool to 22" casing. Operation Summary: Cut off casing on rig floor. Rig up false bowl on top of casing stub. Make up stab in tool on drill pipe. Run in hole to top of float collar. Circulate drill pipe. Stab into float collar. Circulate bottoms up casing by open hole. (2.5 hrs) Hold PJSM with BJ crew. Pump 2 bbls water. Pressure test cement lis to 2,500 Ser�*_Ie�sement psi. OK. Mix and puIs 15.2 ppg cement slurry. Observed cement to surface. Pump 2 bbls water. Break drill pipion, lay down pup jt. Drop drill pipe wiper plug. Pump 7 bbls drilling mud, displace plug to clear drill pipe. CIP @ 9:40 hrs. (1.5 hrs) Pull out of hole with drill pipe. Break out and lay down cement stab in tool. (2 hrs) Work on top drive. Replace brake rotor and adjust clearance. Rebuild wash pipe and replace same. Wire in centrifuge. Work on electricial in Tecton Mud Logging Unit. (8.5 hrs) Welder cut off 20" flow line. Prep to cut 30" and 22" casing. Move cat walk and slide from sub base. (3.5 hrs) Nipple down 30" riser and remove from sub base. Cut 30" and 22" casing from top of well at ground level. Observed good cement at top of 30" x 22" casing. Preheat 21-1/4" test spool for welding. (6 hrs) Comments: Mud Data: MW: 8.8 Viscosity: 70 Filtrate: 16.2 Surveys: None Daily Costs ($): 133,669 Well Costs ($): 1,171,757 Drilling Days: 5 Completion Days: 0 Workover Days: 0 21 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): 0 Ave ROP: Current Ops: Nipple up BOP stack. Welder building drilling riser. Install tarps around rig floor. Operation Summary: Pre -heat 21-1/4" wellhead. Weld on wellhead to 22" casing. Wrap with insulation, allow slow cool down. Install valves on drilling mudcross. Change out driller side tugger line. (6 hrs) Work on top drive. Trouble shot electrical shut down on top drive. Work on mud pits. Clean out sand trap. Rebuild gun lines in mud pit. Repair equlizer line in pit #1. Repair blower motor on top drive. Replace wash pipe. Hang windwall framing and tarps. (11 hrs) Set in BOP stack. Nipple up mud cross onto test spool. Nipple up 2 single gate rams, bottom gate with blind rams, top gate with 5" drill pipe rams. Set in 21-1/4" hydril. Hammer up studs and nuts on each Printed: 12:06 15 -Oct -10 R/MBase Page: 2 of 98 11- Printed: Z ,.`"' y ., Well Summary Report .knek Electric Association, Inc, Nr H Well ID: G-1 Well Name: 0-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough flange section. Welder building drilling riser and flow line. (7 hrs) Comments: Mud Data: MW: 8.8 Viscosity: 70 Filtrate: 16.2 Surveys: None Daily Costs ($): 28,011 Well Costs ($): 1,199,768 Drilling Days: 6 Completion Days: 0 Workover Days: 0 22 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): 0 Ave ROP: Current Ops: Work on replacing Compound chain in drawworks. Welder working on drilling riser and flow line. Operation Summary: Complete nipple up of 21-1/4" BOP Stack. Hammer up all studs & nuts on stack flanges. Install manual and HCR valve on choke and kill lines. Lay out accumulator lines to BOP stack. (6 hrs) Install accumulator lines to BOP Stack. Function test accumulator lines to BOP stack. Trouble shot blower motor issues with top drive. Appears to be breaker to motor. Replacement has been ordered. (12 hrs) Continue to work on drilling riser. Replace lower most compound chain on drawworks. Prepare gas buster line for installation. Clean out choke house skid. (6 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 27,941 Well Costs ($): 1,227,709 Drilling Days: 7 Completion Days: 0 Workover Days: 0 23 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): 0 Ave ROP: Current Ops: Removing bottom brake pins, Welding on flow line. Install flange on choke line. Work on installation of hydraulic choke with remote operator. Operation Summary: Replace compound chain on motor 3. Replace chain oil pump. Replace input chain. Clean and replace all chain guards. Prepare to work on brakes. Remove brake guards. Work on BOP stack. Complete fabrication of drilling riser. (6 hrs) Replace hi -drum chain. Replace chain on low drum. Clean and replace chain guards. Install drilling riser onto BOP Stack. Center up BOP stack in cellar with turnbuckles. Prepare to install flow line. Pick up one stand of drill pipe from the derrick and run in the hole to set top drive and hang blocks. (12 hrs) Replace rotary clutch chain. Clean up brake linkage. Remove top pins from brakes. Welder working on installing flow line. Work on removing bottom brake pins. Some seized up and hard to remove. Work on installing hydraulic choke valve with remote operator. (6 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 37,431 Well Costs ($): 1,265,140 Drilling Days: 8 Completion Days: 0 Workover Days: 0 24 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): 0 Ave ROP: Current Ops: Change out drawworks transmission chain. Fabricate elbow for flow line to possum belly. Nipple up vent line from gas buster. Operation Summary: Replace rotary chain clutch. Remove brake guards. Clean up area. Remove pins from brake linkage. Stab in and hang flow line thru sub base to possum belly. Lay out and nipple up vent line from gas buster. (6 hrs) Remove brake bands and linkage. Pull spear and trouble shot hydramatic. Replace blocks on brake Printed: 12:06 15 -Oct -10 R/MBase Page: 3 of 98 Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough bands. Clean and prep linkage for rebuild. Rebuild hydramatic and override clutch. Remove used cahin from rig floor. Clean up area. Continue to nipple up vent line from gas buster. Plumb in accumulator lines to HCR valve on BOP stack. (12 hrs) Fabricate gun lines in mud pits. Welder fabricating discharge elbow on flow line to possum belly. Remove guards off drawworks transmission chain. Replace drawworks transmission chain. (6 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 112,684 Well Costs ($): 1,377,824 Drilling Days: 9 Completion Days: 0 Workover Days: 0 26 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): 0 Ave ROP: Current Ops: Working on choke skid, gas buster vent lines. Prep choke and kill lines for new hose. Install spacer spool on HCR valve. Operation Summary: Power wash brake linkage. Remove chain guard on drawworks. Replace low and second gear chains in transmission. Move and spot HCR choke remote operator on rig floor. Install lines and sensors for choke control panel. Replace standpipe gauge. (6 hrs) Pulled hydramatic override clutch and change seals. Pull pins from brake linkage and send to machine shop to be rebuilt. Nipple up HCR valve on choke skid. Run service lines from rig floor to choke skid for HCR valves. Welder work on fabricating BOP tests joint and spool for choke skid. Work on setting in vent lines for gas buster. Work on gun lines and mud cleaner manifold in pits. (12 hrs) Install gas buster line to possum belly and choke skid. Work on DSA for choke skid. Lay out 3" choke lines. Work and grease valves in choke skid. Prep lines and DSA's to install fire resistance kill and choke lines. Delivery of choke and kill lines scheduled for PM today. Continue to trouble shot top drive issues between VFD house and rig floor. (6 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 31,941 Well Costs ($): 1,409,765 Drilling Days: 10 Completion Days: 0 Workover Days: 26 -Aug -09 I Current Depth (ft): 397 Hole Drilled (ft): 0 Ave ROP: Current Ops: Roll Drlg line onto Draw works drum. Installing Diverter & 3" line to sump. Operation Summary: Continue to repair Rig -Install line from Gas Buster to Pits. Lay out 3" line for Choke to sump. -Clean up Choke house. Fabricate Gas Buster line into Possum belly. -Fabricate Spacer spool in Choke house for Super Choke. -Re-position Choke house to line up with Gas Buster. -Install Hydromatic on Draw works. Stab Brake spear. -Work on Top drive. Isolate trouble with electric jumper cable. (6 hrs) Continue to repair Rig: -Continue fabricating Choke flanges. Complete rebuild on Brake linkage. -Set linkage in place. Install and adjust Brake bands. Set in V -door and Pipe skate. -Start to button up guards on Draw works. (12 hrs) Continue to repair Rig: -Install guards on Draw works. Fabricate & install Hydromatic guard. -Install kill line valve & flange. Clean out oil pump screen on Draw works. -Roll Drlg line onto Draw works drum. -Completed fabricating Choke manifold buffer chamber line. -Welder continues fabricating Gas Buster vent line from Choke manifold. (6 hrs) Comments: Mud Data: None Printed: 12:06 15 -Oct -10 R/MBase Page: 4 of Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name.,G. Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Surveys: None Daily Costs ($): 94,738 Well Costs ($): 1,504,503 Drilling Days: 11 Completion Days: 0 Workover Days: 0 27 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): Ave ROP: Current Ops: Working on drilling line. Operation Summary: Install chain guard on hydramatic. Install guards on top drive. Rig up kill line to stand pipe. Clean out screen on drawworks oil pump. Install drilling line onto drawworks.Work on vent line to possum belly. Remove hanging line from blocks. Pull one stand of drill pipe from hole and stand back in derrick. Work on rotary bushings. Rig up floor to pick up drill pipe. Adjust brakes, install torque gauges and pump pressure. (6 hrs) Repair grease lines on brake linkage. Clean screens on chain oiler drawworks. Rig up drill pipe spinners. (3 hrs) Pick up 6 joints of 5" drill pipe from pipe rack. Make up stands, set back in derrick. (2 hrs) Make up DSA on choke & kill line. Function test BOP. Pick up test plug. (7 hrs) Attempt to set test plug, will not go thru drilling riser. Remove riser. Attempt to run test plug thru hydril. Will not pass thru mid element. Observed drilling line on drum misaligned. Hang off blocks work on drilling line. (6 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 70,531 Well Costs ($): Drilling Days: 12 Completion Days: 0 1,575,034 Workover Days: 0 28 -Aug -09 Current Depth (ft): 397 Hole Drilled (ft): Ave ROP: Current Ops: Waiting on machinist to mic wellhead & test plug. Perform Rig maintenance. Welder modifying Riser. Operation Summary: Continue to re -align Drlg line: Slip & cut 202' of 1 3/8" Drlg line (cut out bad spot). (3.5 hrs) Pre -Job safety meeting (PJSM) Discuss: Picking up drill pipe & operating pipe Wrangler & pipe Spinners. PU 6 As of 5". G-105, 19.5 #/ft (2-Stds) & rack back in Derrick. (2.5 hrs) Pre -Job safety meeting (PJSM) Discuss: Picking up drill pipe & operating pipe Wrangler & pipe Spinners. PU 99 Jts of 5", G-105, 19.5 #/ft (33-Stds) & rack back in Derrick. PU 12 As of 5", HWDP, 49.3 #/ft (4-Stds) & rack back in Derrick. (7.5 hrs) In preperation for machinist. Rig up to lift BOP stack. Nipple down HCR Choke line & HCR Kill line. Nipple down BOP stack from wellhead. Pick up BOP stack to obtain a weight (45k). -Set BOP stack down & snug up studs. (4.5 hrs) Perform Rig service. Welder is continuing to modify Riser. Roustabouts are are picking up & cleaning on drilling pad. (1 hrs) Change oil in gear end of pump # 1. Welder is continuing to modify Riser. Roustabouts are are picking up & cleaning on drilling pad. (1 hrs) Change oil in Light plant Gen # 1. -Welder is continuing to modify Riser. -Roustabouts are are picking up & cleaning on drilling pad. (1 hrs) Change oil in mud pit agitators. -Welder is continuing to modify Riser. Roustabouts are are picking up & cleaning on drilling pad. (2 hrs) Printed: 12:06 15 -Oct -10 R/MBase Page: 5 of 98 30 -Aug -08 Printed: 12:06 Well Summary Report Well ID: G-1 .knek Electric Association, Inc, Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Pick up and start hanging Wind walls on Rig mud pits. Welder is continuing to modify Riser. Roustabouts are are picking up & cleaning on drilling pad. (1 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 33,324 Well Costs ($): 1,608,358 Drilling Days: 13 Completion Days: 0 Workover Days: 0 Current Depth (ft): 397 Hole Drilled (ft): Ave ROP: Current Ops: Clean Rig & location. Prepare for AOGCC to witness BOP test. Continue with Rig modifications. Operation Summary: Continue to service Rig: Hang wind walls on mud pits. Hammer up flanges on Gas Buster. Lay secondary containment under Pipe wrangler. Split & lift BOP stack for machinist to Mic test plug in well head seating bowl. Break hydraulic connections on Hydril, let hydraulic fluid drain from Hydril to allow for maximum expansion of Hydril rubber element. Test fit test plug into bowl (33/1000s space). Land test plug - OK. Test plug 20.090" O.D. Pull test plug. Pick up & land BOP stack on well head. Welder continuing to modify 30" Riser for Hydril. Welder continuing to modify mud pit roof support braces. (6 hrs) Make up 1 Std of 5" HWDP onto test plug. Run in and seat test plug - OK. Pull test plug. Nipple up BOP stack & HCR Choke & Kill lines. Make up hydraulic lines onto Hydril. Attach & tighten Turn buckles onto Hydril. (5 hrs) Make up 5" test Jt onto test plug. Function test BOP's. Run in & seat test plug. Fill BOP stack w/ water. Pre-test BOP stack to 1000 psi w/ Rig mud pumps - OK. (4 hrs) Service Rig. Welder continuing to modify 30" Riser for Hydril. Welder continuing to modify mud pit roof support braces. Contacted AOGCC with notice of upcoming BOP test @ 21:15 hrs. (1 hrs) PJSM... w/ BJ pumping Svs. Rig up to re -test BOP equipment. Rig up & test hard line in Choke manifold house to 3000 psi - OK. Test BOP equipment - OK. Test witnessed by WSL & TP. Test: Outer Choke manifold valves #s 1,2,3 & 4. Test 2" bleeder valves on mud pumps # 1 & 2. Test to 2000 psi - OK. Welder continuing to modify 30" Riser for Hydril. (2 hrs) Test Choke manifold valves #s 5 through 14 & 4" valves on both mud pumps to 2000 psi - OK. (0.5 hrs) Rig down BJ Svs from Choke manifold house. Rig up BJ Svs hard line to Rig floor & test to 3000 psi - OK. (0.5 hrs) Test: Stand pipe & HCR Kill line, Outer valve on mud cross & 5" Pipe Rams. Test Inner valves on Mud Cross to 2000 psi - OK. Test Full open & Dart valves to 2000 psi - OK. Test Hydril to 1500 psi - OK. Recieved reply from AOGCC ( John Crisp) of his intention to get out to Naknek well G-1 to witness test - ASAP. (2 hrs) Rig down BJ pumping Svs. Clear & clean Rig floor. Clean accumulator & Choke manifold house. Welder continuing to modify 30" Riser for Hydril. Welder continuing to modify mud pit roof support braces. (3 hrs) Comments: AOGCC notified of upcoming BOP test. AOGCC will witness. Mud Data: Surveys: Daily Costs ($): Drilling Days: MW: 8.8 Viscosity: 65 Filtrate: 16.2 None 48,351 14 Current Depth (ft): 397 Current Ops: PU & MU BHA. Well Costs ($): 1,656,709 Completion Days: 0 Workover Days: Hole Drilled (ft): Ave ROP: Operation Summary: Complete BOP pre-test. All tests Pass. Clean up Choke & Accumulator houses. Scrub: Pumps 1 & 2, Rig floor & Dog house. Test Accumulator ( added 30 gallons hydraulic oil to reservoir. (6 hrs) R/MBase Page: 6 of 98 • Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Test BOP's per AOGCC regulations. BOP stack configuration: -20" Hydril MSP 2000 Annular preventer 5" Cameron 10K Pipe Rams. Cameron 10k Blind Rams. Mud Cross. Test: Test Hydril with 5" Test Jt to 1500 psi. Test: Test valves 1 through 14. Test 2" & 4" valves on Mud pumps. Test all valves on Choke & Kill lines. Test IBOP, TIW & Dart valves. Test 5" Pipe Rams & Blind Rams. Test to 250 psi low pressure, 2000 psi high pressure. All test charted. Perform Accumulator test : System start pressure -3000 psi. Draw down pressure 1725 psi. 200 psi build up time — 50 seconds. System full pressure- 297 seconds. 8-N2 bottles X 2350 psi. (Accumulator test times are a little slow and will be remedied)Tests witnessed by WSL, TP & John Crisp AOGCC. All tests are a pass. (6 hrs) RD BJ pumping Svs. (1 hrs) NU. Set in Riser. Center BOP stack. Weld up Flow line. Finish Pit Gun lines. Clear mud pits. (5 hrs) Continue to Fabricate and weld on Flow line. Prepare to drill out: Change Tong jaws. Bring Bit & Bit breaker, Split bowl, 5" DP Slips & steel Stabilizer to Rig floor. Set Verti-Track on Cat walk. Clear & clean Rig floor in preperation to PU & MU BHA. Stage Bed truck to assist PU of Verti-Track. (6 hrs) Comments: Thank you to John Crisp AOGCC for coming out to witness BOP test on short notice. Mud Data: MW: 8.8 Viscosity: 65 Filtrate: 16.2 Surveys: None Daily Costs ($): 46,704 Well Costs ($): 1,703,413 Drilling Days: 15 Completion Days: 0 . Workover Days: Current Depth (ft): 397 Hole Drilled (ft): Ave ROP: Current Ops: Waiting on generator breaker. Clean Rig. Inventory tools. Operation Summary: PU BHA #2: 20" GTX-03 Bit, Verti-Track, Filter sub, Steel stab w/ Float, Shock sub, (3)-NMDC's, (3) -Steel DC's, Drig Jars, (2) -Steel DC's, XO & 1 Std of 5" HWDP. (6 hrs) Trouble shoot TDS 11 SA Top Drive generator. Phone search for power breaker. Have NEA electrcian & mechanic assist in trouble shooting. Clean, Scrub & work on Rig. Pick up & clean up location. Hang Wind walls in Pit room area. (12 hrs) Clean and organize Conexs' on location. Hang Wind walls on Rig floor. Continue scrubbing Rig. Inventory Mud pump parts. Scub Drawworks motor skids. Inventory Rig Tools. (6 hrs) Comments: Mud Data: MW: 8.7 Viscosity: 60 Filtrate: 18 Surveys: None Daily Costs ($): 83,579 Well Costs ($): 1,786,992 Drilling Days: 16 Completion Days: 0 Workover Days 01 -Sep -09 Current Depth (ft): 620 Hole Drilled (ft): 223 Ave ROP: Current Ops: Drilling: Sliding ahead with a Verti-Track trouble free @ 620' md. Operation Summary: Clean and organize Conexs' on location. Hang Wind walls on Rig floor. Continue scrubbing Rig. Inventory Mud pump parts. Scub Drawworks motor skids. Inventory Rig Tools. Hang shieve for survey machine. (6 hrs) Make up Top Drive to #1 generator light plant. (5 hrs) Wash down. Tag Float collar @ 355' md. Circulate hole clean. Drld cement & Shoe track to 397' md. Drld Rathole to 400' md. (2.5 hrs) Drill: Slide ahead trouble free with Verti-Track from 400' and to 503' and (4.5 hrs) Replace Liner seal on #1 Mud pump, #1 bay. (1 hrs) Drill: Slide ahead from 503' to 593' md. (1.5 hrs) Printed: 12:06 15 -Oct -10 R/MBase 7 of 98 Well Summary Report .knek Electric Association, Inc. (" "B", Well ID: 0-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Top Drive failure. Diagnostic check on Top Drive. Repair switch & fuel problem. (1 hrs) Drill: Slide ahead trouble free from 593' to 620' md. PUW 130k, SOW 110k. 1050 gpm / 1850 psi. MW 8.6 ppg. Vis 38 sec/gt. Inclination: 0.01 - 0.03 degrees. (2.5 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 42 Filtrate: 19.6 Surveys: None Daily Costs ($): 95,560 Well Costs ($): 1,882,552 Drilling Days: 17 Completion Days: 0 Workover Days: 0 02 -Sep -09 Current Depth (ft): 1,215 Hole Drilled (ft): 595 Ave ROP: 20.3 Current Ops: Drilling / Sliding ahead with Verti-Track @ 1,215' md. Operation Summary: Continue to Drill / slide ahead with Verti-Track system. Drill ahead from 620' to 745' md. Maximun inclination 0.02 degrees. 170 SPM / 1050 gpm / 1950 psi. WOB 40k. Mud wt 8.6 ppg. Vis 44 sec/gt. Total Drlg hrs on bit = 12.5 (6 hrs) Continue to Drill / slide ahead with Verti-Track system. Drill ahead from 745' to 994' md. Maximun inclination 0.03 degrees. 160 SPM / 946 gpm / 2000 psi. WOB 40k. Mud wt 8.7 ppg. Vis 39 sec/gt. (9 hrs) Change out 2" Bleeder valve on #2 Mud pump. (0.5 hrs) Continue to Drill /slide ahead with Verti-Track system. Drill ahead from 994' to 1037' md. Maximun inclination 0.03 degrees. 160 SPM / 946 gpm / 2000 psi. WOB 40k. Mud wt 8.7 ppg. Vis 45 sec/gt. PUW 140k. SOW 120k. Total Drig hrs on bit = 19.6 (2.5 hrs) Continue to Drill / slide ahead with Verti-Track system. Drill ahead from 994' to 1205' md. Maximun inclination 0.03 degrees. 170 SPM / 946 gpm / 2000 psi. WOB 40k. Mud wt 8.7 ppg. Vis 45 sec/gt. (6 hrs) Comments: Mud Data: MW: 8.7 Viscosity: 40 Filtrate: 19.8 Surveys: None Daily Costs ($): 41,564 Well Costs ($): 1,924,116 Drilling Days: 18 Completion Days: 0 Workover Days: 0 03 -Sep -09 Current Depth (ft): 1,720 Hole Drilled (ft): 505 Ave ROP: 25.3 Current Ops: Drilling 20" open hole section with BHI VertiTrak system at 1,720' MD Operation Summary: Drill from 1,037ft to 1,330ft. Drill 20" open hole section with BHI VertiTrak system. Observed hydraulic leak in top drive. (6 hrs) Repair hydraulic leak on top drive. (1.5 hrs) Drill from 1,330ft to 1,383 ft. Drill 20" open hole section with BHI VertiTrak system. Observed hydraulic leak in top drive. (2 hrs) Circulate and condition hole prior to top drive repair. (0.5 hrs) Replace hydraulic line on top drive. Fill hydraulic reservoir with fluid. (1 hrs) Drill from 1,383ft to 1,434ft Drill with 20" open hole section BHI VertiTrak system. (1.5 hrs) Circulate and condition hole for survey. (0.5 hrs) Run slick line survey from surface to 1,300'. Survey reading .22 deg. (0.5 hrs) Drill from 1,434 ft to 1,720ft. Drill 20" open hole with BHI VertiTrak system. (10.5 hrs) Comments: Mud Data: MW: 8.8 Viscosity: 41 Filtrate: 18.2 Surveys: 280ft - 0.25 deg Inc, 37.95 deg Az; 1300ft - 0.2 deg Inc, 319.98 deg Az; 12.06 15 -Oct -10 R/MBase Paoe: 8 of 98 ; NUElectric Nom+` H Well Summary ReporE Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Daily Costs ($): 48,498 Well Costs ($): 1,972,614 Drilling Days: 19 Completion Days: 0 Workover Days: 0 04 -Sep -09 Current Depth (ft): 2,200 Hole Drilled (ft): 480 Ave ROP: 25.3 Current Ops: Drilling 20" open hole section with VertiTrak system. Operation Summary: Drill from 1532ft to 1871 ft. Drill 20 " open hole section with Vertitrak. (5 hrs) Circulate and condition mud. Build MW up from 8.7 ppg to 9.0 ppg for hole stability. (1 hrs) Drill from 1871 ft to 2081 ft. Drill 20' open hole section with VertiTrak (12 hrs) Drill from 2081 ft to 2200 ft. Drill 20" open hole section with VertiTrak. (6 hrs) Comments: Mud Data: MW: 9 Viscosity: 41 Filtrate: 16 Surveys: None Daily Costs ($): 59,714 Well Costs ($): 2,032,328 Drilling Days: 20 Completion Days: 0 Workover Days: 0 06 -Sep -09 Current Depth (ft): 2,670 Hole Drilled (ft): 470 Ave ROP: 20.9 Current Ops: Drilling 20" open hole section with VertiTrak at 2,670' MD. Centrifuge down. Repair man to arrive today. Operation Summary: Drill from 2200 ft to 2290 ft. Drill 20" open hole section with VertriTrak system. (6 hrs) Drill from 2290 ft to 2536 ft. Drill 20" open hole section with VertriTrak system. (12 hrs) Drill from 2536 ft to 2670 ft. Drill 20" open hole section with VertriTrak system. (6 hrs) Comments: Mud Data: MW: 9 Viscosity: 44 Filtrate: 15.8 Surveys: None Daily Costs ($): 115,354 Well Costs ($): 2,147,682 Drilling Days: 21 Completion Days: 0 Workover Days: 0 06 -Sep -09 Current Depth (ft): 2,890 Hole Drilled (ft): 220 Ave ROP: 19.6 Current Ops: POH and lay down 20" bit and BHA. Prepare to run Baker/Atlas open hole logs. Operation Summary: Circulate while repairing mud pump #2. (1.5 hrs) Drill from 2670 ft to 2752 ft. Drill 20" open hole section with VertiTrak. (4.5 hrs) Drill from 2752 ft to 2890 ft. Drill 20" open hole section with VertiTrak. Bit quit drilling. (7.5 hrs) Circulate Bottoms up. Observed clean returns at shakers. (1 hrs) POH, Short trip from 2,890' to 1,865'. Observed tight spots at 2,704', 2,319', 2,160', and 2,150'. (1.5 hrs) RIH, from 1,865' to 2,704'. Tag fill in hole. Make up top drive, Wash & Ream from 2,704' to 2,890'. (2.5 hrs) Circulate and condition mud for open hole logs. Drop survey tool. (2 hrs) POH to run open hole logs. Observed tight spot at 2,035' with 40K overpull. Work thru tight spot until clean. POH to BHA. (3.5 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 45 Filtrate: 15.2 Surveys: None Daily Costs ($): 43,477 Well Costs ($): 2,191,159 Drilling Days: 22 Completion Days: 0 Workover Days: 0 Printed: 12:06 15 -Oct -10 RIMBase Page: 9 of 98 N" w°�, Well Summary Report knek Electric Association, Inc. L�"� Well 1 m !D: G - Well Nae; Q-1 f` Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 07 -Sep -09 Current Depth (ft): 2,890 Hole Drilled (ft): 0 Ave ROP: 18.3 Current Ops: Running 16" casing. Operation Summary: Pull out of hole to BHA. SLM, no change. Break down and lay out BHA. Recover survey tool.Clean debris out of filter sub. (5.5 hrs) Held PJSM with both drilling crews on rigging up Baker/Atlas a -line equipment. (0.5 hrs) Rig up Baker/Atlas a -line equipment. Make up open hole logging tools. (1.5 hrs) RIH a -line tools, Density, Acoustic, Sonic, Caliper. Tag up at 2,870' ELM. Pull of hole logging open hole section at 25 fph. Make pass from 22" casing shoe to 700'. Pull logging tools to surface. (3.5 hrs) Rig down Baker/Atlas equipment. Job went Good. (1 hrs) Held PJSM on rigging up and running 16" casing. (0.25 hrs) Rig up GBR casing running equipment. (1.25 hrs) Make up 16" float shoe joint. Run 30 joints 16" casing to 1,255'MD. Fill every joint. PUW 140k, SOW 120k. (10.5 hrs) Comments: Mud Data: Surveys: Daily Costs ($): Drilling Days: MW:9 Viscosity: 41 Filtrate: 14.5 2748ft - 0.2 deg Inc, 200.95 deg Az; 56,350 23 08 -Sep -09 Current Depth (ft): 2,890 Current Ops: Cement 16" casing. Well Costs ($): 2,247,508 Completion Days: 0 Workover Days: 0 Hole Drilled (ft): 0 Ave ROP: Operation Summary: Run 16" casing from 1,255'md to 2,860'md. Fill every joint. PUW 260k, SOW 220k. (9 hrs) Tag up on fill at 2,860'md. Make1 circulating swedge with hoses. Break circulation. Pump rate 4 bpm at 400 psi. Work casing t 2,885' d. (2 hrs) Circulate bottoms up from 2,88S4r6. Hole in good condition. (1 hrs) Make cut on 16" casing at rig floor. (1 hrs) Clear rig floor of casing running tools. (1 hrs) Rig up floor to run 5" drill pipe. (0.5 hrs) Make up 5" stab -in -cement sub. Run in hole with 5" drill pipe from derrick to 850'. (1.5 hrs) Repair oil line on drawworks compound. (0.5 hrs) Run in hole with stab -in cement sub on 5" drill pipe to 2,870'md. (2.5 hrs) Rig up cement lines to top of drill pipe. Break circulation. (1 hrs) Slack off and stab into float collar at 2,875'md. Circulate bottoms up thru 16" x 20" annulus. Full returns to surface. (1 hrs) Held PJSM with Rig Crew & BJ Services Cementers. (0.25 hrs) Pump 10 bbls o water. Pressure test cement lines to 2,500 psi. OK. Mix 20 bbls Mudclean Spacer. Mix and pum 457 bbls 12.5 ppg lead slurry cement at 6 bpm 30 psi, lost returns after 375 bbis pump, regained circ latioh after losing 130 bbls, continue mixing cement, pump tail slurry at 15.5 ppg. (2.75 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 40 Filtrate: 14.4 Surveys: None Daily Costs ($): 277,124 Well Costs ($): 2,524,632 Drilling Days: 24 Completion Days: 0 Workover Days: 0 09 -Sep -09 Current Depth (ft): 2,890 Hole Drilled (ft): 0 Ave ROP: Current Ops: Prepare to pump cement for top job on 16" x 22" annulus. Prinfarl• 19 -OR 15 -Orf -10 Rimpace Pane• 1nnf9R t� N Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 10 -Sep -09 Operation Summary: Continue pumping 15.5 ppg tail slurry cement. Lost total of 20 Is while pumping cement. Displace drill pipe with 45 bbls of mud. CIP at 06:30 hrs. Drop drill pi wiper plug. Displace to end of string. (0.5 hrs) Pull out of hole with 5" drill pipe, stand back in derrick, break off stab -in -sub. (4.5 hrs) Wait on cement. Prepare to nipple down 21-1/4" BOP stack Work on mud pumps. Change pump liners to 6-1/2". (5 hrs) Nipple down drilling riser. Make first cut on 16" casing. Pull and lay down cut off 16" casing. Nipple down 21-1/4" BOP stack. (8 hrs) Pull 21-1/4" BOP stack out of cellar area. Cut off 21-1/4" test spool from 22" casing. Check cement top in 16" x 22" annulus. Located top of cement at 120' below ground level. Prepare to perform top job with cement. (6 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 251,886 Well Costs ($) Drilling Days: 25 Completion Days: Current Depth (ft): 2,890 Hole Drilled (ft): Current Ops: Nipple up 16-3/4" BOP stack. 2,776,518 0 Workover Days: 0 Ave ROP: Operation Summary: Run 2" line pipe down 16" x 22" annulus to 179'. Rig up cement line to pump fuck. Mix and pumcstl bbls 15.5 ppg cement for top job. Observed full returns during displacement. CIP at 10:00 hrs. Rig down cement lines. Clean up well cellar area. (1 hrs) Clean up 21-1/4" BOP stack for shippment. Make up tarp windwall for cellar. Build work platform for welder in cellar to weld on casing head. (1.5 hrs) Set casing head on 16" casing. Pre -heat wellhead. Weld on casing head per TNG Wellhead Tech. (4 hrs) Pick up drill pipe and make up stands in derrick. Waiting on casing head to cool down. Prepare to nipple up 16-3/4" BOP stack. (7 hrs) Remove mouse hole, and pipe racks to move in 16-3/4" BOP stack. (2.5 hrs) Install gate valves on 16-3/4" casing head. (1 hrs) Install 16-3/4" 3K x 5K double studded adapter flange on top of 16-3/4" casing head. (1 hrs) Make up 16-3/4" drilling mud cross on top of DSA. (1 hrs) Install gate valves, HCR on mud cross. Welder fabricating drilling riser. (1 hrs) Comments: Mud Data: MW: 9 Viscosity: 38 Filtrate: 15 Surveys: None Daily Costs ($): 46,091 Well Costs ($): 2,822,609 Drilling Days: 26 Completion Days: 0 Workover Days 11 -Sep -09 Current Depth (ft): 2,890 Hole Drilled (ft): 0 Ave ROP: Current Ops: Attempt to test BOP stack. Hammer up all studs and nuts on flanges. Operation Summary: Nipple up 2" 5k gate valves on wellhead. Nipple up 16-3/4" 3k x 5k double studded adapter flange. Nipple up drilling mud cross. Hook up choke and kill lines. Move in and nipple up 2- single gates with blind and pipe rams. Hammer up studs and nuts on all flanges. Replace gun lines in mud pits. (6 hrs) Move in 16-3/4" 10k annular. Nipple up 16-3/4" 5k x 10k double studded adapter flange. Hammer up all suds and nuts on flanges. Hook up koomey lines to BOP stack from accumulator. Make 16-3/4" test plug on joint of drill pipe. Set test plug in wellhead. Passed thru BOP stack, OK. (9.5 hrs) Printed: 12:06 15 -Oct -10 11 of 98 12 -Sep -09 • Well Summary Report Well ID: G-1 • knek Electric Association, Inc. Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough PJSM with Rig Crew and BJ Services on BOP testing. Fill BOP stack and choke manifold with test fluid. Rig up test lines from BJ Services pump unit to rig floor. Pressure test lines to 3,500 psi, OK. Close annular and attempt to pressure test. Leak by annular element. Open annular. Pull test plug and test joint. Close blind rams. Single gate door leaking. Dress mud pumps with 6-1/2" liners. (2.5 hrs) Attempt to test blind rams, failed. Function blind rams. Retest same, failed. Observed leaks at flanges between single gates and annular. Pull test plug. Redress with new O -rings. Reset test plug. Attempt to retest BOP stack. Observed leaking bolts on single gate above mud cross. (6 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 38 Filtrate: 15 Surveys: None Daily Costs ($): 115,091 Well Costs ($): 2,937,700 Drilling Days: 27 Completion Days: 0 Workover Days: Current Depth (ft): 2,890 Hole Drilled (ft): 0 Ave ROP: Current Ops: Change out service loop on top drive. Install drilling riser and flow line on top of BOP stack. Operation Summary: Hammer up studs and nuts on BOP stack that were leaking. (1 hrs) Pretest BOP stack to 250/2,500 psi, OK (1 hrs) Held PJSM with drilling crew, BJ Services, and AOGCC PI on BOP testing procedures. (0.25 hrs) Pressure test 16-3/4" BOP stack. Lou Gramaldi, AOGCC PI, witnessed testing. Pressure test annular to 250/2,500 psi. Test pipe rams, mud cross kill vavles, and choke valves 250/3,000 psi. Test IBOP, lower kelly, & full open safety valve to 250/3,000 psi. Test choke manifold, dart valve to 250/3,000 psi. Pressure test outside & inside choke and kill line valves 250/3,000 psi. HCR valve on choke line failed pressure test. (6.75 hrs) Change out manual and HCR valves on choke line. Change out 2- double studded adapter flange. (4 hrs) Continue with BOPE test, Pressure test manual, HCR valve, and blind rams on choke line 250/3,000 psi. Complete BOPE test. Pull test plug and test joint. Perform accumulator test. (2 hrs) Change out service loop on top drive. Rig up and install drilling riser and flow line on top of BOP stack. (9 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 44 Filtrate: 13 Surveys: None Daily Costs ($): 32,454 Well Costs ($): 2,970,154 Drilling Days: 28 Completion Days: 0 Workover Days: 13 -Sep -09 Current Depth (ft): 2,890 Hole Drilled (ft): 0 Ave ROP: Current Ops: Clean out 16" casing in preparation of upcoming casing test. Operation Summary: Complete Installation of new service loop for top drive. Test run top drive. DS blower motor not working. (5 hrs) Change out DS blower motor on top drive. Attempt to run blower motor, continues to trip breaker in top drive electrical room. Need electrician to trouble shoot issue. (4.5 hrs) Make up new 14-3/4" MX-DX18 Drill bit. Pick up mud motor and stablizer. Make up BHA assembly. Observed galled threads in box and pin end areas of monel drill collars. Repair thread areas on 3 monel drill collars and filter sub. Continue to picking up BHA. (8.5 hrs) Run in the hole with HWDP from the derrick to 795'. Observed drilling fluid returns to surface at 400'. (3 hrs) Run in the hole picking up single joints of drill pipe off the pipe rack. Run in the hole to 2,600' (3 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 45 Filtrate: 13 Printerl- 12.06 15-0ct-10 R/MBase of 98 • 11 Printed: 12:06 15 -Oct -10 R/MBase rage: 74 or yu Well Summary Report knek Electric Association, Inc. 0°" Nom! �`� Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Surveys: None Daily Costs ($): 108,835 Well Costs ($): 3,078,989 Drilling Days: 29 Completion Days: 0 Workover Days: 0 14 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 20 Ave ROP: Current Ops: Suspend drilling operations to repair tapered shaft in drawworks. Reduce crew size. Drill string inside casing. Operation Summary: Circulate and condition mud at 2,840'. Pump rate at 450 gpm 850 psi (3 hrs) Held PJSM with Drilling Crew and BJ services for pressure testing casing. Rig up test lines to rig floor and wellhead annulus valve. Pressure test lines to 2,000 psi. Pressure up casing to 1,000 psi with 2.2 bbls of test fluid. Hold test pressure for 30 min. Good test. Bled off test pressure. Recovered 2.2 bbis test fluid. Casing test witnessed by AOGCC. (1.5 hrs) Trouble shoot electrical problem with top drive DS blower motor. Unable to resolve issues. (1.5 hrs) Drill float collar and clean out cement to float shoe. Drill float shoe and clean out rat hole to 2,890'. (1.5 hrs) Drill from 2890 ft to 2910 ft. Drill 14-3/4" open hole section. (0.5 hrs) Circulate and condition mud for Formation Integirty Test. (1 hrs) Held PJSM on performing Formation Integrity Test. Rig up test lines to rig floor and wellhead annulus. Pressure test lines to 1,500 psi. Pressure up to 520 psi, hold for 10 min. Bleed off test pressure. Same amount of test fluid. Good test. FIT = 12.5 ppg MWE. Rig down BJ Services test lines. FIT witnessed by AOGCC. (1.5 hrs) Trouble shoot electrical problem with top drive DS blower motor with local electrician.. Unable to resolve issues. (0.5 hrs) Investigate noise in drawworks. Disassemble drawworks to inspect drum shaft. Discovered tapered drum shaft damaged. Work to remove shaft. Continue to disassemble drawworks. Suspend drilling operations to repair drawworks. (13 hrs) Comments: Mud Data: MW: 9.15 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 68,392 Well Costs ($): 3,147,381 Drilling Days: 30 Completion Days: 0 Workover Days: 0 15 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: 40.0 Current Ops: Prepare to crane drawworks from rig floor for shipment to Anchorage to be repaired and returned. Monitor well while conducting rig repairs. Operation Summary: LO/TO drawworks motors. Hang blocks & spin off drilling line from drum. Remove drawworks guards. Remove top drive control panel, weight indicator, and drum & tong line guards from driller's station. Remove high drum, low drum, and rotary chains. Remove brake bands, linkage, and water box from low drum side. (6 hrs) Remove break linkage. Disassemble low drum clutch. Rig down top drive power module. LO/TO drawworks motors. Circulate bottoms up at 5 bpm 850 psi. In/out temp 85 deg. Well in good condition. Monitor well while conducting rig repairs. (12 hrs) Clean and organize drawworks & break parts. Power wash and clean all drawworks parts. Prepare drawworks for crane removal from rig floor. Monitor well while conducting rig repairs. (6 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 41,546 Well Costs ($): 3,188,927 Drilling Days: 31 Completion Days: 0 Workover Days: 0 16 -Sep -0-9- Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Printed: 12:06 15 -Oct -10 R/MBase rage: 74 or yu • • Printed: 12:06 15 -Oct -10 R/MBase Page: 14 of 98 Well Summary Report .knek Electric Association, Inc. N� H Well ID; G-1 Well Name: G -1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Current Ops: Suspend drilling operations. Monitor well. Operation Summary: Continue to disassemble drawworks. Rig down stairs to rig floor. Move in winch truck and move out top drive skid module. Remove drum section from drawworks. Remove windwalls from back of rig floor. Move in and rig up crane. Hoist drawworks drum from rig floor and set on herc skid. Secure drum to herc skid. Clean up rig floor. Power wash drawworks. Cover drawworks with tarp. Continue installation of boiler system. Circulate mud surface to surface, 4 bpm at 850 psi. wellbore in good condition. Monitor well. (14 hrs) Monitor well. Drilling operations suspended during repairs to drawworks. Reduced drilling crew to daylight tour. (10 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 25,908 Well Costs ($): 3,214,835 Drilling Days: 32 Completion Days: 0 Workover Days: 0 17 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: General rig repairs. Inspect clutch and hydromatic. Install new boiler lines and heaters. Operation Summary: Remove cat engine from top drive skid. Load out engine and deliver to NEA shop for repair and return. Plumb in 2" hard line from trip tank to drilling riser. Remove and repair 2 centrifigual pumps. Offload connex container loaded with drums of lube oil. Continue installation of new boiler system. Perform general housekeeping on rig and pad areas. Assist NEA crew offload cat engine and move into shop for rebuild. Monitor well. (13 hrs) Monitor well. Circulate mud surface to surface at 4 bpm 840 psi. Temp 81 deg. Mud in good condition. Wellbore in good shape. (11 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 866,997 Well Costs ($): 4,081,832 Drilling Days: 33 Completion Days: 0 Workover Days: 0 18 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Drilling operations suspended while drawworks are being repaired. Monitor wellbore. Operation Summary: Disassemble and breakdown cathead on drawworks. Clean and overhaul. Replace bearings, friction plate, and diaphram. Reassemble cat head. Install steam lines and new roughneck heaters. Off load lube oil shippment. Receive and inventory truckload of rig parts. Organize connex with rig parts. Service and lube forklifts and welding machine. Monitor well. (13 hrs) Monitor well. Circulate mud surface to surface, pump rate at 4 bpm 850 psi, In/out temp 83 deg. Thermasource Toolpushers working on plan forward. DHS Toolpusher working on repairing Drawworks at NOV shop in Anchorage. (11 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 648,807 Well Costs ($): 4,730,639 Drilling Days: 34 Completion Days: 0 Workover Days: 0 19 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Drilling operations suspended while making repairs on drawworks shaft. Printed: 12:06 15 -Oct -10 R/MBase Page: 14 of 98 r� u • Printed: 12:06 15 -Oct -10 R/MBase rage: 7b or VU Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 ` Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Operation Summary: Continue overhaul of ODS cat head. Waiting on shims to complete repairs. Repair and replace bearings on trip tank electric motor. Inventory and reorganize parts connex. Continue installation of steam lines thru subbase. Install steam heaters. Continue working on boiler system. Steam clean drawworks chain guards. Complete full service on drawworks engine #2, Air, oil, and fuel filters. Inspect drawworks tapered shaft in Anch. Results determine shaft connot be repaired. Order new shaft. Monitor well, (13 hrs) Circulate well surface to surface. Pump rate at 8 bpm 750 psi. Wellbore in good condition. Monitor well. (11 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 21,102 Well Costs ($): 4,751,741 Drilling Days: 35 Completion Days: 0 Workover Days: 0 20 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Drilling Operations suspended while making repairs on drawworks shaft. Operation Summary: Complete overhaul of ODS cat head. Complete rebuild of trip tank pump. Reinstall same. Clean, inventory, and organize parts hous, filter house, and mechanic connex. Service all NEA three forklifts on location. Continue installation of boiler steam lines and heaters thru out subbase area. Monitor well. (13 hrs) Circulate drilling fluids in well surface to surface. Pump rate 8.5 bpm at 780 psi. Wellbore in good condition. Continue to monitor well. (11 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 15,607 Well Costs ($): 4,767,348 Drilling Days: 36 Completion Days: 0 Workover Days: 0 21 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Drilling Operations suspended while making repairs on drawworks shaft. Operation Summary: Complete service drawworks engines #2 & #3, oil, air, and fuel. Change oil and filters in torque converters. Inspect and adjust sproket and chain oiler for torque converters. Install pump gauge on mud pump #1. Install new bottle rack inside accumulator house for nitrogen. Successfully test rebuilt trip tank pump and motor. Inventory and organize filter house. Monitor well. (13 hrs) Circulate drilling fluids in well surface to surface. Pump rate 8.5 bpm at 780 psi. Wellbore in good condition. Continue to monitor well. (11 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 19,555 Well Costs ($): 4,786,903 Drilling Days: 37 Completion Days: 0 Workover Days: 0 22 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Drilling Operations suspended while making repairs on drawworks shaft. Circulate and monitor well bore Operation Summary: Modify and install 2" water line for rig supply. Continue installation of Boiler system . Service #1 Drawworks Torque converter. Full service on mud pump #2. Ship out 3" 5k Weatherford HCR valve for Printed: 12:06 15 -Oct -10 R/MBase rage: 7b or VU • �N Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 v� Field: Kin Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough King g repairs. Drain accumulator tank install 1-1/2" lines for secondary pump. Refill tank and engergize. Monitor well. (12 hrs) Circulate drilling fluids in well surface to surface. Pump rate 8.5 bpm at 780 psi. Wellbore in good condition. Continue to monitor well. (12 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 15,677 Well Costs ($): 4,802,580 Drilling Days: 38 Completion Days: 0 Workover Days: 0 23 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Drilling Operations suspended while making repairs on drawworks shaft. Circulate and monitor well bore Operation Summary: Install insulation under drawworks. Organize location. Trouble shoot top drive with technician from Quadco. Inspect choke lines for whip checks. Hang rotary tongs, adjust counter weights, rig up snub lines, and jerk lines. Service torque converter on mud pump #1. Change out air blankets on mud pump # 1 & 2. Service air tuggers. Measure out rig for new winterization package. Monitor wellbore. (13 hrs) Circulate drilling fluids in well surface to surface. Pump rate 8.5 bpm at 780 psi. Wellbore in good condition. Continue to monitor well. (11 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 13,537 Well Costs ($): 4,816,117 Drilling Days: 39 Completion Days: 0 Workover Days: 0 24 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Drilling Operations suspended while making repairs on drawworks shaft. Circulate and monitor well bore Operation Summary: Install 1" water return line. Secure all tarps for winterization. Overhaul water spear on for drum shaft. Clean and organize motor shed, light plant skid, pump skid, and upper dog house. Build shelves in connex storage unit. Monitor well. (13 hrs) Circulate drilling fluids in well surface to surface. Pump rate 8.5 bpm at 780 psi. Wellbore in good condition. Continue to monitor well. (11 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 16,012 Well Costs ($): 4,832,129 Drilling Days: 40 Completion Days: 0 Workover Days: 0 25 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Drilling Operations suspended while making repairs on drawworks shaft. Circulate and monitor well bore Operation Summary: Work with Top Drive Technican to trouble shoot electrical issues with DS blower motor. Electrical plug ends appear to be damaged. Order new electrical plug ends and pig tails. Work on rotary beams for table. Change oil in water pump. Build enclosure for water pump. Received engine and generator set from NEA for top drive skid. Monitor well bore. (13 hrs) Circulate drilling fluids in well surface to surface. Pump rate 8.5 bpm at 780 psi. Wellbore in good condition. Continue to monitor well. (11 hrs) Comments: Printed: 12:06 15 -Oct -10 R/MBase rage: io or 98 0 Printed: 12.06 15 -Oct -10 RIMBase rage: 1 i or as Well Summary Report .knek Electric Association, Inc. �yN Well ID: G-1 Well Name: G-1 Field: Kin Salmon Sect: 14 "town: 17S Rng: 44W County: Bristol Bay Borough 9 g tY Mud Data: MW: 9.1 Viscosity: 39 Filtrate: 16 Surveys: None Daily Costs ($): 25,162 Well Costs ($): 4,857,291 Drilling Days: 41 Completion Days: 0 Workover Days: 0 26 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Install rebuilt drawworks. Trouble shoot top drive electrical issues. Operation Summary: Rig up return line from hydromatic brake to water tank. Plumb in blow down line for kelly hose and stand pipe. Trouble shoot top drive issues with Top drive Technician. Monitor wellbore. (6 hrs) Prep area to install repaired drawworks. Assist Top Drive Technician, replace electrical connections on top drive skid and top unit on rig floor. Monitor wellbore (5 hrs) Circulate drilling fluids in well surface to surface. Pump rate 8.5 bpm at 780 psi. Wellbore in good condition. Continue to monitor well. (1 hrs) Continue working on top drive service loop electrical connections. Prepare to move top drive skid. (6 hrs) Lug down top drive connections from rig generator. Move top drive skid. Pull off roof section. Install rebuilt cat engine and generator onto top drive skid. Set back roof section. Drawworks arrived location at 02:30 am. Offload herc skid. Crane in drawworks to rig floor. Install rebuilt drawworks on rig floor. (6 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 40 Filtrate: 15 Surveys: None Daily Costs ($): 47,520 Well Costs ($): 4,904,811 Drilling Days: 42 Completion Days: 0 Workover Days: 0 27 -Sep -09 Current Depth (ft): 2,910 Hole Drilled (ft): 0 Ave ROP: Current Ops: Circulate & condition mud. Prepare to drill ahead. Complete Drawworks installation. Operation Summary: Pick drum shaft and set in place. (2 hrs) Re -assemble Drum shaft and Drawworks. install in Drawworks. Install high & low Drum chain. Install brake linkage. (4 hrs) Work on Top Drive power unit (exhaust & fuel system). Mount day tank and fuel & water seperator. Move Filter house. Set Top Drive power unit. Reset Filter house. (4 hrs) Install low Drum clutch. Install Hydro-matic, Brake bands & all remote grease lines. Plumb in Hydro-matic lines. Install High & low Drum chain guards. General house keeping. Burn in Brakes. Spool up Drlg line. Adjust Brakes. Unhang Blocks. Install Rotary chain. Circulate bottoms up & condition mud. 10 bpm / 800 psi. (14 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 41 Filtrate: 11.6 Surveys: None Daily Costs ($): 88,592 Well Costs ($): 4,993,403 Drilling Days: 43 Completion Days: 0 Workover Days: 0 28 -Sep -09 Current Depth (ft): 3,400 Hole Drilled (ft): 490 Ave ROP: Current Ops: Directionally drilling ahead trouble free @ 3,400' md. Maintaining vertical wellbore. Operation Summary: Circulate bottoms up. Pre -Drill safety meeting. Discuss Drilling Plan forward. Discuss the definition of "Tight Hole" and its' implications. (1 hrs) Commence Drilling operations. Directionally drill ahead trouble free from 2,910' to 3,034' md. Maintain Printed: 12.06 15 -Oct -10 RIMBase rage: 1 i or as Well Summary Report knek Electric Association, Inc. Nom! Well ID: 0-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough a vertical wellbore. WOB 50k, RPM 60, Tq 3-5k, 863 gpm / 2,200 psi. Transfered 10,000 gallons of water from Earth pit to Day tank. (5 hrs) Service Rig & Top Drive. Inspect derrick. (0.5 hrs) Directionally drill ahead trouble free from 3,034' to 3,270' md. Maintain a vertical wellbore. WOB 50k, RPM 60, Tq 3-5k, 832 gpm / 2,250 psi. (11.5 hrs) Service Rig & Top drive. Directionally drill ahead trouble free from 3,270' to 3,400' md. Maintain a vertical wellbore. WOB 50k, RPM 60, Tq 5-8k, 832 gpm / 2,450 psi. SPR #1= 70 spm / 530 psi. SPR #2= 65 spm / 400 psi. Flow line temperature 106 F. (6 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 38 Filtrate: 11.6MW: 8.9 Viscosity: 40 Filtrate: 11 Surveys: 3003ft - 0.53 deg Inc, 154.82 deg Az; 3097ft - 0.66 deg Inc, 179.07 deg Az; 3190ft - 0.48 deg Inc, 199.36 deg Az; 3285ft - 0.13 deg Inc, 249.2 deg Az; Daily Costs ($): 47,616 Well Costs ($): 5,041,019 Drilling Days: 44 Completion Days: 0 Workover Days: 0 29 -Sep -09 Current Depth (ft): 3,780 Hole Drilled (ft): 380 Ave ROP: Current Ops: Directionally drilling ahead trouble free @ 3,780' md. Maintaining vertical wellbore. Operation Summary: Continue to directionally drill ahead maintaining a vertical wellbore. Drill ahead from 3,400' to 3,536' md. Centrifuge non-operable - see Rig info for remarks. PUW 175k, SOW 170k, ROT wt 172k. WOB 50k. RPM 60 / Tq 5-8K, 825 gpm / 2490 psi. SPR #1 = 70 spm / 530 psi. SPR #2 = 65 spm / 400 PSI. (6.5 hrs) Inspect Drawworks. Found a wrinkle in the drilling line on the Drawworks drum. Circulate bottoms up. Monitor well - Static. Prepare to pull up into the casing shoe. (0.5 hrs) Pull up into casing shoe from 3,536' to 2,848' md. (1 hrs) Hang Blocks. Slip & cut 88' of 1-3/8" drilling line. Work with welder on Lebus grooves on Drawworks drum (some ridges folded over) clean up ridges. Unhang Blocks & service Rig. (3.5 hrs) RIH from 2,848' to 3,533' md. Tag 3' of fill. (0.5 hrs) Circulate fill off bottom. (0.5 hrs) Directionally drill ahead from 3,536' to 3,660' md. PUW 178k, SOW 173k, ROT wt 176k. WOB 50k, RPM 60 / Tq 5-8K, 825 gpm / 2490 psi. SPR #1 = 70 spm / 514 psi. SPR #2 = 64 spm / 418 PSI. Dumped 50 bbis mud from sand trap. (5.5 hrs) Directionally drill ahead from 3,660' to 3,780' md. PUW 180k, SOW 175k, ROT wt 178k. WOB 50k, RPM 60 / Tq 5-9K, 850 gpm / 2500 psi. SPR #1 = 70 spm / 514 psi. SPR #2 = 64 spm / 418 PSI. Dump 30 bbis mud from sand trap. (6 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 45 Filtrate: 10.6MW: 8.9 Viscosity: 40 Filtrate: 11 Surveys: None Daily Costs ($): 41,656 Well Costs ($): 5,082,675 Drilling Days: 45 Completion Days: 0 Workover Days: 30 -Sep -09 Current Depth (ft): 4,230 Hole Drilled (ft): 450 Ave ROP: Current Ops: Directionally drilling ahead with full returns. Operation Summary: Directionally drill ahead trouble free from 3,780' to 3,915' md. PUW 180k, SOW 175k, ROT wt 178k. WOB 50k, RPM 80 / Tq 5-9k. 850 gpm / 2560 psi. SPR #1 = 71 spm / 550 psi. SPR #2 = 64 spm / 455 psi. Dumped 30 bbls from sand trap. (6 hrs) Service Rig. Change oil on #2 Generator. (0.5 hrs) Directionally drill ahead trouble free from 3,915' to 4,056' md. PUW 181 k, SOW 175k, ROT wt 179k. WOB 50k, RPM 75 / Tq 5-9k. 832 gpm / 2500 psi. SPR #1 = 71 spm / 550 psi. (5.5 hrs) While drilling ahead @ 4,056' md, encountered total loss of returns. Pull up 1 stand. Circulate attempt to circulate at a reduced rate - no circulation. Attempt to fill from backside to establish a loss rate - no Printed. 12:06 15 -Oct -10 R/MBase Page: 18 of 98 Well Summary Report knek Electric Association, Inc. J�f Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough circulation. (Contact town engineer) While mix & pumping (156 bbls) 30 Ib/bbl LCM (Check Loss -C 15 ppb & Nut plug -M) pill @ 88 bbls away established partial returns (40-50%). Utilize reserve pit water to assist in maintaining hole fill and thinning the drilling fluid. Drill ahead. (1.5 hrs) Continue to directionally drill ahead from 4,056' to 4,137' md. Drill with reduced pump rate (561 gpm / 1200 psi) and reduced bit weight (40k). PUW 183k, SOW 175k, ROT wt 180k. Continue to mix string in LCM material : Check loss -C & Nut plug -M @ 6-10 sx/hr. Continue using reserve pit water to assist in building volume. Total estimated losses @ 00:00 hrs is 850 bbls. (4.5 hrs) Continue to directionally drill ahead from 4,137' to 4,230' md. Drill with reduced pump rate (600 gpm / 1400 psi) and reduced bit weight (40k). RPM 70 / Tq 5-9k. PUW 183k, SOW 180k, ROT wt 180k. Continue to mix string in LCM material : Check loss -C & Nut plug -M @ 6-10 sx/hr. Continue using reserve pit water to assist in building volume. SPR #1 = 71 spm / 555 psi. SPR #2 = 64 spm / 465 psi. Full returns were established @ 04:00 hrs. Noticed hydraulic leak on Top Drive. Will pull into shoe and inspect. Estimated losses since midnight 1,000 bbls. Conducted Kick while drilling drill - well secure 42 seconds. (6 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 45 Filtrate: 10.6MW: 9.4 Viscosity: 41 Filtrate: 10.4 Surveys: None Daily Costs ($): 38,425 Well Costs ($): 5,121,100 Drilling Days: 46 Completion Days: 0 Workover Days: 0 01 -Oct -09 Current Depth (ft): 4,295 Hole Drilled (ft): 65 Ave ROP: Current Ops: Drilling ahead @ 4,295' md. Losing 72 bph. Operation Summary: Directionally drilled to 4,230' md. PUW 180k, SOW 175k, ROT wt 178k. WOB 40k. RPM 70 / Tq 5-9k. 600 gpm / 1400 psi. SPR #1 = 71 @ 555 psi. SPR #2 = 64 @ 465 psi. Observe hydraulic leak on Top Drive. POH into casing shoe @ 2,876' md. Hole is starting to take fluid again. Losses @ +/- 40 bph. (1 hrs) Repair hydraulic leak on Top Drive. Hydraulic leak is Brake seals on calipers. Change out brake caliper seals. Rig down P-3400 centrifuge. Fill hole @ 40-45 bbls/hr. Mix & condition drilling mud. Change oil on #1 motor. (16 hrs) RIH slow (60-90 seconds per stand) with drilling assembly f/ 2,876' to 4,230' md. PUW 180k. SOW 175k. Perform Kick while tripping drill on the way in the hole. (1 hrs) Fill pipe. Circulate bottoms up. 60 bbls to fill hole. (1 hrs) Directionally drill ahead from 4,230' to 4,295' md. All drilling rates are reduced due to losses. PUW 190k, SOW 185k, ROT wt 188k. WOB 50k. RPM 70 / 5-8k Tq. 600 gpm / 1300 psi. SPR #1 = 73 @ 475 psi. SPR #2 = 64 @ 400 psi. Losses @ 40 - 50 bbls/hr. Daily losses = +/- 1,200 bbls. Total losses to well = 2,200 bbls. (5 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 35 Filtrate: 12MW: 8.9 Viscosity: 45 Filtrate: 9.4 Surveys: None Daily Costs ($): 48,040 Well Costs ($): 5,169,140 Drilling Days: 47 Completion Days: 0 Workover Days: 02 -Oct -09 Current Depth (ft): 4,540 Hole Drilled (ft): 245 Ave ROP: Current Ops: Directionally drilling ahead @ 4,540' md. Losses @ 76 bbls/hr. Operation Summary: Continue to Directionally drill ahead 4,320' md. WOB 50k, RPM 70 / Tq 5-8k. 600 gpm / 1300 psi. PUW 190k.SOW 183k. ROT wt 185k. Losses @ +/- 60 bbls/hr. (3 hrs) POH f/ 4,320' to 4,196' md. Work pipe. Trouble shoot pump pressure loss. Suction line plugged. Valve shut. Pump suction pit mud out to reserve pit. Install new donut on #1 suction. Fix twisted off valve handle. SPR #1 = 73 spm / 473 psi. SPR #2 = 64 spm / 400 psi. Pump mud back into pits from reserve pit. (4 hrs) Drill ahead w/ losses @ 75 bbls/hr. Drill from 4,320' to 4,476' md.PUW 195k. SOW 189k. ROT wt 193k. Printed: 12:06 15 -Oct -10 R/MBase rage: I or ya (; Nv`; Well Summary Report knek Electric Association, Inc. �e r' Well ID: G-1 Well Name: G-1 Field: King Salman Sect: 14 Town: 17S Rng. 44W County: Bristol Bay Borough WOB 50k. RPM 60-80 / Tq 9k. 728 gpm / 2050 psi. SPR #1 = 73 spm / 563 psi. SPR #2 = 64 spm / 468 psi. (11 hrs) Continue to drill ahead w/ losses @ 80 bbls/hr. Drill from 4,476' to 4,540' md.PUW 198k. SOW 190k. ROT wt 195k.. WOB 50k. RPM 70 / Tq 5-10k. 700 gpm / 4800 psi. SPR #1 = 73 spm / 563 psi. SPR #2 = 65 spm / 395 psi. Daily losses to well = +/- 1,600 bbls. Total losses to well = 3,800 bbls (6 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 40 Filtrate: 9.8MW: 8.7 Viscosity: 38 Filtrate: 10 Surveys: None Daily Costs ($): 299,361 Well Costs ($): 5,468,501 Drilling Days: 48 Completion Days: 0 Workover Days: 0 03 -Oct -09 Current Depth (ft): 4,808 Hole Drilled (ft): 268 Ave ROP: Current Ops: Directionally drilling ahead @ 4,808' md. ROP @ 16 ft/hr. Mud Losses @ +/ 150 bbls/hr. Operation Summary: Continue to Directionally drill ahead from 4,540' to 4,606' md. WOB 50k, RPM 75 / Tq 5-10k. 700 gpm / 1700 psi. PUW 198k.SOW 190k. ROT wt 195k. Losses @ +/- 90 bbls/hr. SPR #1= 73 spm / 480 psi. SPR #2= 65 spm / 395 psi. D-2 drill (kick while drilling) - Well secure in 36 seconds. (6 hrs) Service Rig. Lubricate Top Drive & Drawworks. (0.5 hrs) Continue to Directionally drill ahead from 4,606' to 4,737' md. WOB 50k, RPM 75 / Tq 5-10k. 700 gpm / 1650 psi. PUW 200k.SOW 195k. ROT wt 197k. Losses @ +/- 120 bbls/hr. SPR #1 =72 spm / 510 psi. SPR #2 =64 spm / 430 psi. (11.5 hrs) Continue to Directionally drill ahead from 4,737' to 4,808' md. WOB 50k, RPM 70 / Tq 5-10k. 700 gpm / 1670 psi. PUW 203k.SOW 198k. ROT wt 200k. Losses @ +/- 150 bbls/hr. SPR #1 =73 spm / 480 psi. SPR #2 =64 spm / 388 psi. Daily Mud Losses = 3,390 bbls. Total Mud losses to well = 7,190 bbls. Contacted Jeff Jones w/ AOGCC 1:44 pm — 10/02/2009 - 48 hrs notice of intention to test BOP's. (6 hrs) Comments: Mud Data: MW: 8.7 Viscosity: 38 Filtrate: 10MW: 8.6 Viscosity: 38 Filtrate: 9.6 Surveys: None Daily Costs ($): 145,446 Well Costs ($): 5,613,947 Drilling Days: 49 Completion Days: 0 Workover Days: 0 04 -Oct -09 Current Depth (ft): 4,840 Hole Drilled (ft): 32 Ave ROP: Current Ops: Picking up & make up BHA. Operation Summary: Continue to Directionally drill ahead from 4,808' to 4,840' md. WOB 50k, RPM 70 / Tq 5-10k. 700 gpm / 1600 psi. PUW 203k.SOW 198k. ROT wt 200k. Losses @ +/- 150 bbls/hr. SPR #1 =73 spm / 480 psi. SPR #2 =64 spm / 388 psi. Daily Mud Losses = 2,225 bbls. Total Mud losses to 11,755 bbls.well = 9,415 bbls. Contacted Jeff Jones w/ AOGCC 1:44 pm — 10/02/2009 - 48 hrs notice of intention to test BOP's. Jeff waived witness of test. (2 hrs) Circulate & condition mud. Build LCM pill to spot when up hole. (0.5 hrs) POH w/ directional drilling assembly. POH from 4,840' to 3,800' md. (1 hrs) Fill hole 56 bbls. Spot 40 ppb LCM pill @ 3,800' md. Displace 520 strokes. (0.5 hrs) Continue to POH w/ drilling assembly. Hole in good shape. (2 hrs) Continue to POH. Stand back drill collars. Lay down Mud motor, MWD & Bit. Bit + 3 -8 -BT -M -E -1 -CT -HR. Fill hole 48 bbls. (6 hrs) N.O.V. Houston working on Top Drive. Building new mud. Mechanic installing new secondary pump on Accumulator. Strap 5" DP on rack. Fill hole 11 bbls. (5 hrs) Rig up to test BOPE. Set test plug. Held 3rd party safety meeting w/ all on location. Discuss working around high pressure. BJ sys test lines to 4,000 psi - Good. Test Hydril 250 psi low pressure- Good. losses for day = 2,340 bbls. Total losses to well = 11,755 bbls. (1 hrs) Test BOP's per AOGCC regulations. Printed: 12:06 15 -Oct -10 R/MBase rage: Zu or arr • N Well Summary Report" knek Electric Association, Inc. Well ID: Q-1 Well Name: G-1 \\\ Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristo[ Bay Borough BOP stack configuration: -16 3/4" Hydril 10,000# Annular preventer 5" Cameron 10K Pipe Rams. Cameron 10k Blind Rams. Mud Cross. Test: Test Hydril with 5" Test A to 250 psi low & 2500 psi. Test: Test valves 1 through 14. Test 2" & 4" valves on Mud pumps. Test all valves on Choke & Kill lines. Test IBOP, TIW & Dart valves. Test 5" Pipe Rams & Blind Rams. Test to 250 psi low pressure, 3000 psi high pressure. All test charted. Perform Accumulator test : System start pressure -3000 psi. Draw down pressure 11650 psi. 200 psi build up time — 74 seconds. System full pressure- 364 seconds. 8-N2 bottles X 2500 psi. (Accumulator test times are a little slow and will be remedied, 1- part, a new belt for the new Accumulator pump did not arrive with parts order. We will have this remedied for next test next week.)Tests witnessed by WSL, TP. Jeff Jones AOGCC. Waived witness of test. All BOP tests are a pass. (5 hrs) Rig down test equipment. Pull test plug. Pick up & make up BHA. (1 hrs) Comments: Jeff Jones AOGCC waived witness of BOP test @ 1:44 PM on 10/02/2009. Mud Data: MW: 8.6 Viscosity: 36 Filtrate: 12 Surveys: None Daily Costs ($): 39,256 Well Costs ($): 5,653,203 Drilling Days: 50 Completion Days: 0 Workover Days: 0 06 -Oct -09 Current Depth (ft): 4,980 Hole Drilled (ft): 140 Ave ROP: Current Ops: Drilling 14-3/4" open hole section at 4,980'. Fluid loss rate at 68 bph. Operation Summary: Seal pitcher nipple, Blow down choke manifold with air to freeze protect. Prepare to pick up BHA. (1.5 hrs) Pick up and make up Bit & BHA #4. Run in the hole to 796'. (4.5 hrs) NOV Mechanics trouble shoot top drive issues. Repair blower motor pressure regulator switch. (1 hrs) Run in the hole picking up 5" drill pipe off rack using pipe wrangler. Fill drill pipe at 2,784'. (3 hrs) NOV Mechanics repair hydraulic leak on top drive. (0.5 hrs) Run in the hole with 5" drill pipe from 2,784' to 2,878'. Fill drill pipe. (0.5 hrs) NOV Mechanics replaced hydraulic line on top drive. (1.5 hrs) Run in the hole with 5" drill pipe from 2,878' to 4,389'. Fill drill pipe. (1 hrs) Make up top drive. Break circulation. Precautionary wash & ream from 4,389' to 4,840'. On Bottom. Hole in good condition. Loss rate at 20 bph. (1.5 hrs) Drill from 4,840 ft to 4,980 ft. Up Wt = 207K, Dn Wt = 198K, Rot Wt = 203k. WOB = 45/55K. Pump Rate = 725 gpm at 1,900 psi. RPM with motor = 205. Current fluid loss rate at 68 bph. Drilling fluid FW with gel. (9 hrs) Comments: Mud Data: MW: 8.7 Viscosity: 40 Filtrate: 9.4 Surveys: 4516ft - 0.88 deg Inc, 207.86 deg Az; 461 lift - 0.9 deg Inc, 205.23 deg Az; 4705ft - 0.93 deg Inc, 217.38 deg Az; 4801ft - 1 deg Inc, 217.51 deg Az; Daily Costs ($): 103,744 Well Costs ($): 5,756,947 Drilling Days: 51 Completion Days: 0 Workover Days: 0 06 -Oct -09 Current Depth (ft): 5,100 Hole Drilled (ft): 120 Ave ROP: 15.6 Current Ops: Pull out of hole from 5,095' to make up BHA. Operation Summary: Drill from 4,980 ft to 5,080 ft. PUW = 207K, SOW = 198K, ROT = 203k. WOB = 45/55K. Pump Rate = 725 gpm at 1,900 psi. RPM with motor = 205. Current fluid loss rate at 45 bph. Drilling fluid FW with gel. (5 hrs) Drill from 5,080 ft to 5,100 ft. Lost total returns. Drill ahead w/o returns. Fluid loss rate 800 bph. Decision made to pull BHA to pump LCM pill. (1 hrs) Prinlarf- 19•nR 1 -nor -1n Paae: 21 of 98 NuW Well Summary Report knek Electric Association, Inc, Well IO: G-1 Well Name: G-1 Field: King Salmon Sect, 14 Town: 17S Rng: 44W County: Bristol Bay Borough Pull out of hole to 2,870'. Pump water down drill pipe x open hole annulus. No returns to surface. Loss rate at 600 bph. (2.5 hrs) Rig up manifold system for water pump to send water to pits, storage tank, and pump down the annulus. Loss rate at 200 bph. (0.5 hrs) Pull out of hole from 2,870' to BHA. Stand back BHA in derrick. Break off bit. Fluid loss rate at 200 bph. (5 hrs) Clear rig floor. Service rig and top drive. (0.5 hrs) Run in hole with open ended drill pipe to 3,865'. Fluid loss rate at 200 bph. (2 hrs) PJSM, Pump 150 bbls 50 ppb LCM pill. Displace with 70 bbls water. Clear drill pipe. Fluid loss rate at 300 bph while pumping. (0.5 hrs) Pull drill pipe to 2,834'. Monitor well. Fluid loss at less than 200 bph. (0.5 hrs) Monitor well. Continue pumping water down wellhead annulus valve. No returns to surface. Fluid loss rate less than 200 bph. (1.5 hrs) Start mixing 2nd LCM pill. Run in hole with drill pipe to 5,095'. Continue to pump water down wellhead annulus valve. Fluid loss at 200 bph. (3 hrs) PJSM, Pump 150 bbls 50 ppb LCM Pill. Displace with 90 bbls water. Clear drill pipe. Fluid loss rate decreased. Observed 6% increase in returns to surface. (1 hrs) Work drill pipe. Mix 3rd LCM pill. Total fluid loss for 24 hr period = 4,500 bbls. (1 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 38 Filtrate: 9.8 Surveys: None Daily Costs ($): 39,499 Well Costs ($): 5,796,446 Drilling Days: 52 Completion Days: 0 Workover Days: 0 07.00t-09 Current Depth (ft): 5,100 Hole Drilled (ft): 0 Ave ROP: 20.0 Current Ops: Makeup BHA #6 w/o MWD tools. Operation Summary: PJSM, Pump 3rd 150 bbls 50 ppb LCM Pill at 5,095'. Displace drill pipe with 90 bbls water. Clear drill pipe. Fluid loss rate decreased. Observed 30% increase in returns to surface. (1 hrs) Pull drill pipe from 5,095' to surface. Monitor well. Hole displacement while pulling drillpipe was 34 bbls. Continue to pump water down wellhead annulus. (2.5 hrs) Service Rig and top drive. Inspect high drum clutch. (0.5 hrs) Make up BHA. Change out drilling jars, hydraulic leak. Lay down old jars, pick up new jars. Repair tong head. Replace tong dies. Run in slow with HWDP to 797'. (8 hrs) NC Electrican completed repairs on top drive generator. Rig up NOV top drive gen set. Test run system , OK. Fill hole. Circulate drillpipe and check MWD tools, OK. (3 hrs) Run in hole to 2,877'. Attempt to circulate. Drill string plugged off with LCM. Decision made to pull out of hole. Displacement while tripping was 33 bbls. (1.5 hrs) Pull out of hole to BHA. BHA plugged off with LCM. Break off bit. Work motor in rotary table to clear out LCM. Screw into mud motor with top drive and circulate out LCM. Lay down BHA. Prepare to pick up new BHA w/o MWD tool. (7.5 hrs) Comments: Mud Data: MW: 8.4 Viscosity: 29 Filtrate: 1 Surveys: 4992ft - 0.93 deg Inc, 205.47 deg Az; Daily Costs ($): 38,216 Well Costs ($): 5,834,662 Drilling Days: 53 Completion Days: 0 Workover Days: 0 08 -Oct -09 Current Depth (ft): 5,104 Hole Drilled (ft): 4 Ave ROP: Current Ops: Drilling 14-3/4" Open hole at 5,104' Operation Summary: Lay down mud motor. Clear rig floor. (1 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: zz or as Well Summary Report knek Electric Association, Inc. Well 1D: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Make up BHA #6. with Bit #5. Run in hole to 700'. (1 hrs) Run in hole with 5" drill pipe from derrick to 2,850'. (3 hrs) Make up top drive. Break circulation. Wash and ream from 2,850' to 3,420. Tag up on fill. (0.5 hrs) Pull out of hole to 16" casing to work on top drive. (0.5 hrs) NOV Mechanics work on top drive. Change out VDC plug. Service rig and top drive. Function test all top drive controls. (2 hrs) Run in hole from 2,850' to 3,134'. Tag up on fill. (0.5 hrs) Make up top drive. Wash and ream from 3,134' to 3,240'. Pumps not operating properly. (0.5 hrs) Pull out of hole from 3,240' to 2,850'. (1 hrs) Work on both mud pumps. Clean out suction lines on both mud pumps. Test run pumps, OK. (3.5 hrs) Run in hole from 2,850' to 3,218'. Tag up on fill. (0.5 hrs) Make up top drive. Break circulation. Wash and ream from 3,218' to 3,228'. Fluid loss rate at 10-20 bph. (2.5 hrs) Weight up and vis mud system. Circualte and work pipe from 3,199' to 3,228'. Bring up mud weight to 8.7 ppg with a 40 sec vis. (3.5 hrs) Precautionary wash and ream from 3,228' to 4,551'. Fluid loss rate at 25-45 bph. (4 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 42 Filtrate: 15 Surveys: None Daily Costs ($): 110,129 Well Costs ($): 5,944,791 Drilling Days: 54 Completion Days: 0 Workover Days: 0 09 -Oct -09 Current Depth (ft): 5,216 Hole Drilled (ft): 116 Ave ROP: Current Ops: Pull out of hole from 5,216' to change BHA. Operation Summary: Precautionary wash & ream to bottom at 5,100' (0.5 hrs) Drill from 5,100 ft to 5,117 ft Rotary drill 14-3/4" open hole section. Hole static. No fluid losses. (3 hrs) Attempt to make connection. Drill string plugged off. Unable to move drill string. Work Pipe. Regain pipe movement and circulation. (0.5 hrs) Circulate and condition hole. Mix and pump hi -vis unweighted sweep to clean up hole. Observed increase in cuttings at shaker when pill returned to surface. (1 hrs) Drill from 5117 ft to 5216 ft. Rotary drill 14-3/4" open hole section. Mix and pump LCM sweep every hour. Avg.Fluid loss rate 115 bph. Spot 75 bbl LCM hi -vis pill on bottom prior to trip out. (18.5 hrs) Pull out of hole from 5,216' to change BHA. (0.5 hrs) Comments: Mud Data: MW: 8.8 Viscosity: 42 Filtrate: 9.6 Surveys: None Daily Costs ($): 45,049 Well Costs ($): 5,989,840 Drilling Days: 55 Completion Days: 0 Workover Days: 0 10.Oct-09 Current Depth (ft): 5,280 Hole Drilled (ft): 64 Ave ROP: 5.4 Current Ops: Drilling 14-3/4" open hole section at 5,280'. Fluid loss rate 170 bph. Operation Summary: Pull out of hole from 5,216' to 2,850'. (1 hrs) Circulate and condition mud at 16" casing shoe. (0.5 hrs) Pull out of hole from 2,850' to BHA. Stand back HWDP in derrick. (2 hrs) Lay down 7-3/4" Jars, Break off 14-3/4" drill bit and bit sub, pull float, lay down 8" drill collars. (1.5 hrs) Rig up DD tongs. Make up 9-1/2" Baker Mud Motor and 14-3/4" drill bit. (1 hrs) Service rig and top drive. (0.5 hrs) Replace leaking pipe ram valve on accumulator. Install back up pump on accumulator system. Change Prints-& 19.06 1.5 -Ort -10 R/MBase Page: 23 • • N°.. Well Summary Report knek Electric Association, Inc. Well ID: G4 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough impellor on #1 charge pump. Monitor wellbore, fluid loss rate at less than 25 bph. (4.5 hrs) Make BHA. stablizer, filter sub, and MWD tool. (2 hrs) Make adjustments to DD floor tongs. Would not hold on monel drill collars. Make up monel drill collars, OK. (1 hrs) Run in the hole from 891' to 5,216', fill pipe every 10 stands. Hole taking about 140 bph loss rate. (5.5 hrs) Drill from 5,216 ft to 5,280 ft. PUW. 213K, SOW 208K, ROTW 21 OK. Pump rate 700 gpm at 1,365 psi. WOB 45/55k, RPM 90/110. (4.5 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 38 Filtrate: 11.8 Surveys: None Daily Costs ($): 61,229 Well Costs ($): 6,051,069 Drilling Days: 56 Completion Days: 0 Workover Days: 0 11 -Oct -09 Current Depth (ft): 5,556 Hole Drilled (ft): 276 Ave ROP: 14.2 Current Ops: Testing BOPE Operation Summary: Drill from 5,280 ft to 5,556 ft. Drill 14-3/4" open hole from 5,280' to 5,556'. Observed pump pressure loss and reduce drill string weight. Prepare to pull drill string. PUW 218k, SOW 210K. ROTW 215K. Pump Rate 500 gpm at 1,200 psi. RPM at 110 with torque at 8-1 OK. Fluid loss average less than 200 bph. Total fluid loss while drilling 3,500 bbls of FW. (19.5 hrs) Pul out of hole to HWDP. One joint of HWDP parted in box end. Break out and lay down bad joint of HWDP. (4 hrs) Prepare to test BOPE. (0.5 hrs) Comments: Mud Data: MW: 8.7 Viscosity: 40 Filtrate: 10.4 Surveys: 5180ft - 0.92 deg Inc, 204.98 deg Az; Daily Costs ($): 47,185 Well Costs ($): 6,098,254 Drilling Days: 57 Completion Days: 0 Workover Days: 0 12 -Oct -09 Current Depth (ft): 5,556 Hole Drilled (ft): 0 Ave ROP: 14.2 Current Ops: Pull out of hole with recovered fish. Operation Summary: Dress out16-3/4" BOP test plug. Pick up test joint. Make up test plug and set in test spool. Fill BOP stack with test fluid. Build surface volume in mud pits. Monitor well from below test spool thru wellhead valves. (3 hrs) Rig up BJ Services Pump unit for BOP testing. (2 hrs) Pressure test 16-3/4" BOPE 250 psi low, 3,000 psi hi. Pressure test annular 250/2,500 psi. Continue BOP test. Pressure test pipe rams, choke mainifold, inside choke and kill line, and outside choke and kill line. Pull test joint. Close and test blind rams. Reset test joint and function test acuumlator. Good Test. Recovery time with new accumulator pump 199 seconds. (4 hrs) Pull and lay down 16-3/4" BOP test plug. Clear rig floor (1 hrs) Rig down BJ Services pump unit. (1 hrs) Strap, and caliper Fishing BHA. (1 hrs) Pick up and make up 11-1/2" cut lip guide overshot dressed with 6-1/4" spiral grapple. Make up 7-3/4" jars and 9 -ea 8" drill collars. Run in the hole with fishing BHA. (2 hrs) Run in hole with with overshot fishing assembly on 5" drillpipe from derrick to 5,059. Estimated top of fish. (6 hrs) Make up top drive. Break circulation and wash down over top of fish with overshot. Observed pressure increase and drill string take weight. Pick up and engage fish observed 65K increase in drill string up weight. (1 hrs) Printed. 12:06 15 -Oct -10 RIMBase rage: L4 0r'JC 0 • Printed: 12:06 15 -Oct -10 R/Mease rage: zo or ao Well Summary Report .knek Electric Association; Inc. 0N Well [D: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Pull out of hole with recovered fish. Fluid loss rate at 200 bph. Total loss 4,800 bbis for last 24 hrs. (3 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 54 Filtrate: 8.4 Surveys: None Daily Costs ($): 116,352 Well Costs ($): 6,214,606 Drilling Days: 58 Completion Days: 0 Workover Days: 0 13 -Oct -09 Current Depth (ft): 5,556 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in hole with BHA # 8. Fill pipe every 10 stands. Operation Summary: Pull out of hole with fish. Rack back 3 stands HWDP. Break out and lay down drilling jars. (2 hrs) Pull out of hole. Lay down 3 joints HWDP. Release cut lip guide overshot from fish. Lay down fishing tool assembly. (1 hrs) Drill string plugged with cuttings. Break out and lay down 9-1/2" drill collar. Clear debris out of drill string. (3 hrs) Pump thru directional tools. OK. Clear rig floor and change out drill pipe tongs. (1 hrs) Change elevators, Brake out and lay down HWDP for inspection. Fluid loss rate to hole at less than 150 bph. (2 hrs) Flush BHA. Run in hole. Pick up 9- 6-1/2" drill collars to replace HWDP. Run in hole to 719'. Attempt to circulate drillstring. Plugged off. (5 hrs) Pull out of hole to NMDC. Plugged off at totco ring. Break down NMDC stand. Clean out debris from NMDC. Repair galled threads on NMDC pin ends. Loss rate at 8 bph. (6 hrs) Run in the hole with BHA to 720'. Make up top drive. Break circulation and test MWD tool, OK. (2 hrs) Run in the hole with BHA on 5" drill pipe from derrick to 2,885'. At 16" casing shoe. Total fluid lost last 24 hrs = 3,500 bbls. (2 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 36 Filtrate: 11.8 Surveys: None Daily Costs ($): 37,935 Well Costs ($): 6,252,541 Drilling Days: 59 Completion Days: 0 Workover Days: 0 14 -Oct -09 Current Depth (ft): 5,858 Hole Drilled (ft): 302 Ave ROP: Current Ops: Drilling 14-3/4" open hole Operation Summary: Run in the hole from 5,556'.Fill pipe ervry 10 stands. Fliu loss at 200 bph. (5 hrs) Drill from 5,556 ft to 5,858 ft. Drill 14-3/4" open hole secrion. PUW 230K, SOW 215K, RTW 232K. RPM 110. WOB 50. Fluid loss rate at 25 bph. (19 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 38 Filtrate: 10.2 Surveys: None Daily Costs ($): 57,527 Well Costs ($): 6,310,068 Drilling Days: 60 Completion Days: 0 Workover Days: 0 15 -Oct -09 Current Depth (ft): 5,922 Hole Drilled (ft): 64 Ave ROP: 15.9 Current Ops: Working on top drive repairs. Operation Summary: Drill from 5,858 ft to 5,922 ft. Drill 14-3/4" open hole section. PUW 235K, SOW 225K, RTW 230K. RPM 110, Torque 8K, Fluid loss rate avg 50 bph. (10 hrs) Printed: 12:06 15 -Oct -10 R/Mease rage: zo or ao Printed: 12:06 15 -Oct -10 RIM6ase rage. zo Ur va Summary Report knek Electric Association, Inc. ON�Well Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Pull out of hole due to top drive issue. Trip out from 5,922' to surface. Stand back BHA in derrick. (7 hrs) Investigate top drive issues. Traction motors need to be replaced. Work on removing same. Contact NOV in Houston TX. for replacement motors and NOV Mechanic to assist in repairs. (7 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 37 Filtrate: 10.2 Surveys: 5274ft - 0.6 deg Inc, 212.63 deg Az; 5369ft - 0.65 deg Inc, 184.76 deg Az; 5575ft - 0.71 deg Inc, 161.29 deg Az; 5669ft - 1.02 deg Inc, 180.79 deg Az; 5764ft - 1.43 deg Inc, 177.21 deg Az; 5858ft - 1.49 deg Inc, 179.78 deg Az; Daily Costs ($): 39,699 Well Costs ($): 6,349,767 Drilling Days: 61 Completion Days: 0 Workover Days: 0 16 -Oct -09 Current Depth (ft): 5,922 Hole Drilled (ft): 0 Ave ROP: 6.4 Current Ops: Remove Traction motors from Top Drive. Rig repairs. Operation Summary: Remove traction motors from top drive. Monitor well. Loss rate avg. 50 bph. Coordinate with NOV in Houston TX for shipment of new traction motors to rigsite. (24 hrs) Comments: Mud Data: MW: 8.4 Viscosity: 32 Filtrate: 13 Surveys: None Daily Costs ($): 61,369 Well Costs ($): 6,411,136 Drilling Days: 62 Completion Days: 0 Workover Days: 0 17 -Oct -09 Current Depth (ft): 5,922 Hole Drilled (ft): 0 Ave ROP: Current Ops: Work with NOV Top Drive Technician. Clean parts and prepare top drive for installation of new traction motors. Monitor wellbore. Operation Summary: Complete removal of traction motors from top drive. Clean & prepare replacement parts for top drive. Work with boiler Tech on flushing clean boiler. Work with pipe fitter installing steam lines and heaters. Prepare 13-5/8" BOP stack for next hole section. Install new set of blind rams. Clean up ring gasket groves and studs & nuts on flange connections. Inventory drawworks chain. Monitor wellbore no fluid losses. Work on fresh water line. (24 hrs) Comments: Mud Data: MW: 8.4 Viscosity: 30 Filtrate: 14 Surveys: None Daily Costs ($): 31,621 Well Costs ($): 6,442,757 Drilling Days: 63 Completion Days: 0 Workover Days: 0 18 -Oct -09 Current Depth (ft): 5,922 Hole Drilled (ft): 0 Ave ROP: Current Ops: Prep Top Drive for installation of new traction motors. Monitor well bore, no fluid losses, well static. Operation Summary: Clean up and prep top drive for new traction motors. Attempt to install new set of blind rams in 13-5/8" BOP stack in preparation for next hole section. Cameron Iron Works sent wrong set of blind rams. Will contact for change out. Remove old traction motors from rig floor. Continue working on boiler upgrades, steam lines and heaters. Prep storage pad for arrival of barge material. Monitor wellbore, no fluid losses, well static. (24 hrs) Comments: Mud Data: MW: 8.4 Viscosity: 30 Filtrate: 16 Surveys: None Printed: 12:06 15 -Oct -10 RIM6ase rage. zo Ur va 0 N" We .11 Summary Report .knek Electric Association, Inc; Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Daily Costs ($): 28,981 Well Costs ($): 6,471,738 Drilling Days: 64 Completion Days: 0 Workover Days: 0 19 -Oct -09 Current Depth (ft): 5,922 Hole Drilled (ft): 0 Ave ROP: Current Ops: Install new traction motors on top drive. Monitor wellbore. No fluid losses. Operation Summary: Clear rig floor. Lay down top drive traction motors. Prepare top drive for installation of new motors. General houskeeping on location. Work on fresh water line. Pressure test same. Monitor wellbore. No fluid losses. (8 hrs) Received new traction motors from NOV. Prepare motors to install. Uncrate motors and move to the rig floor. Install new traction motors and hardware on top drive. Safety wire bolts and install blower motor plates. Install brake assemblies and hydraulic lines. Monitor well bore. No fluid losses. Crate up old traction motors and prepare for shipment. (16 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 39 Filtrate: 15 Surveys: None Daily Costs ($): 32,277 Well Costs ($): 6,504,015 Drilling Days: 65 Completion Days: 0 Workover Days: 0 20 -Oct -09 Current Depth (ft): 5,922 Hole Drilled (ft): 0 Ave ROP: Current Ops: Complete installation of new traction motors on top drive. Continue to monitor wellbore. No fluid losses. Operation Summary: install new traction motors on top drive. Safety wire bolts. Install plates on blower motor. Hook up hydraulic lines. Lug up wires and brake lines. Trace out rerun hydraulic brake lines. Hook up temperature and heater lines. Fill gear box with lube oil. Wire up blower motors and encoders. Install goose neck and service loops. Program and trouble shoot VFD house to top drive, Work with NOV Tech Support on phasing issues with traction motors. Monitor wellbore. No fluid losses. (24 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 38 Filtrate: 15 Surveys: None Daily Costs ($): 167,365 Well Costs ($): 6,671,380 Drilling Days: 66 Completion Days: 0 Workover Days: 0 21 -Oct -09 Current Depth (ft): 5,922 Hole Drilled (ft): 0 Ave ROP: Current Ops: Slip & Cut Drilling Line at 2,790'. Monitor wellbore. Static Operation Summary: Continue to work on traction motors for top drive. Work on phasing motors. Function test traction motors. Install covers for blower motors. Safety wire bolts. Install gear oil. Rig down scoffolding and clear floor. Service rig and top drive. (7.5 hrs) Pick up and make up test joint and test plug. Set in test spool. Fill BOP stack with test fluid. (0.5 hrs) Held PJSM with Rig Crew and BJ Services. Review testing procedure and safety hazards. (0.5 hrs) Pressure test 16-3/4" BOPE 250 psi low, 3,000 psi hi. Pressure test annular 250/2,500 psi. Continue BOP test. Pressure test pipe rams, choke mainifold, inside choke and kill line, and outside choke and kill line. Pull test joint. Close and test blind rams. Reset test joint and function test acuumlator. Good Test. Recovery time with new accumulator pump 38 seconds. (6.5 hrs) Rig down BJ Services. Pull test joint and plug. Lay down same. Blow down choke manifold to freeze protect. (1 hrs) Makeup new 14-3/4" bit. Makeup BHA # 8. RIH with BHA to 625'. (5 hrs) Make up top drive. Shallow test downhole tools OK. Monitor wellbore, static (0.5 hrs) Run in the hole with 5" drill pipe from the derrick to 2,790'. (1.5 hrs) Slip & Cut Drilling Line. Monitor wellbore static. No fluid losses. (1 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: -,r or &a N Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 ' Field: King Salmon Sect. 14 Town: 17S Rng: 44W County: Bristol Bay Borough Comments: Mud Data: MW: 8.5 Viscosity: 38 Filtrate: 25 Surveys: None Daily Costs ($): 116,964 Well Costs ($): 6,788,344 Drilling Days: 67 Completion Days: 0 Workover Days: 0 22 -Oct -09 Current Depth (ft): 6,132 Hole Drilled (ft): 210 Ave ROP: Current Ops: Drilling 14-3/4" open hole section. Continue to pump LCM sweeps to control fluid losses. Loss rate at 36 bph. Operation Summary: Slip & cut 100' drilling line. (2 hrs) Service rig and top drive. (1 hrs) Run in the hole from 2,790' to 3,084. Tag up on fill in the hole. (1 hrs) Make up top drive, Wash and ream from 3,084' to 5,922'. (7.5 hrs) Drill from 5,922 ft to 6,132 ft. Drill 14-3/4" open hole section. PUW 245K, SOW 220K, RTW 235K. Pump rate 550 GPM at 1,550 psi. WOB= 50K, RPM=130. Loss rate at 36 BPH. Continue to add LCM sweeps to control loss rate. (12.5 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 30 Filtrate: 35 Surveys: 5953ft - 1.6 deg Inc, 182.24 deg Az; Daily Costs ($): 74,865 Well Costs ($): 6,863,209 Drilling Days: 68 Completion Days: 0 Workover Days: 0 23 -Oct -09 Current Depth (ft): 6,455 Hole Drilled (ft): 323 Ave ROP: 16.8 Current Ops: Drill 14-3/4" open hole section. Continue to monitor well for fluid losses, 24 bph. Operation Summary: Drill from 6,132 ft to 6,195 ft. Drill 14-3/4" open hole section. PUW 251 K, SOW 233K, RTW 246K. Pump rate 700 GPM at 2.066 psi. WOB= 50K, RPM=130. Loss rate at 25 BPH. Continue to add LCM sweeps to control loss rate. (4.5 hrs) Complete repairs to top drive with NOV Mechanic. Released Top drive Mechanic. (2 hrs) Drill from 6,195 ft to 6,455 ft. Drill 14-3/4" open hole section. PUW 245K, SOW 220K, RTW 235K. Pump rate 700 GPM at 2,100 psi. WOB= 50K, RPM=130. Loss rate at 36 BPH. Continue to add LCM sweeps to control loss rate. (17.5 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 39 Filtrate: 15MW: 8.5 Viscosity: 38 Filtrate: 12 Surveys: 6047ft - 1.98 deg Inc, 191.84 deg Az; 6141ft - 2.32 deg Inc, 192.82 deg Az; 6235ft - 2.09 deg Inc, 193.95 deg Az; 6329ft - 2.58 deg Inc, 194.25 deg Az; Daily Costs ($): 248,239 Well Costs ($): 7,111,448 Drilling Days: 69 Completion Days: 0 Workover Days: 0 24 -Oct -09 Current Depth (ft): 6,650 Hole Drilled (ft): 195 Ave ROP: 14.7 Current Ops: Drilling 14-3/4" open hole section. Continue to Monitor wellbore for fluid losses. Loss rate at 25 bph. Operation Summary: Drill from 6,455 ft to 6,474 ft.Drill 14-3/4" open hole section. PUW 245K, SOW 220K, RTW 235K. Pump rate 700 GPM at 2,100 psi. WOB= 50K, RPM=130. Loss rate at 25 BPH. Continue to add LCM sweeps to control loss rate. Observed drill pipe pressure loss. (2.5 hrs) Investigate 600 psi pressure loss to drill string. Pressure test all surface equipment. OK. Pull out of hole inspecting drill pipe for wash out. Discovered wash out in drill pipe at 1,100' from bit. Lay down bad joint. Adjust drill pipe tally. (5.5 hrs) Run in hole with drill pipe to casing shoe at 2,798'. Fill drill pipe. Check MWD tool OK. Run in hole with drill pipe to 6,474'. Fill pipe every 10 stands. 4.5 hrs Printed: 12:06 15 -Oct -10 R/MBase rage: 28 or ao Printed: 12:06 15 -Oct -10 R/MBase rage: za or va Well Summary Report knek Electric Association, Inc. ;SN' Well ID: G-1 Well Name: G-1 YE Field: King Salmon Sect 14 Town: 17S Rng: 44W County: Bristol Bay Borough Drill from 6,474' ft to 6,650 ft. Drill 14-3/4" open hole section. PUW 250K, SOW 235K, RTW 245K. Pump rate 750 GPM at 2,600 psi. WOB= 50K, RPM=130. Loss rate at 25 BPH. Continue to add LCM sweeps to control loss rate. (11.5 hrs) Comments: Mud Data: MW: 8.55 Viscosity: 40 Filtrate: 12MW: 8.6 Viscosity: 34 Filtrate: 15.6 Surveys: 6420ft - 2.6 deg Inc, 197.88 deg Az; 6514ft - 2.72 deg Inc, 194.52 deg Az; Daily Costs ($): 95,716 Well Costs ($): 7,207,164 Drilling Days: 70 Completion Days: 0 Workover Days: 0 25 -Oct -09 Current Depth (ft): 6,873 Hole Drilled (ft): 223 Ave ROP: 13.9 Current Ops: Run in with fishing assembly. Operation Summary: Drill from 6,650 ft to 6,873 ft Drill 14-3/4" open hole section. PUW 255K, SOW 2247K, RTW 252K. Pump rate 750 GPM at 2,600 psi. WOB= 50K, RPM=130. Loss rate at 25 BPH. Continue to add LCM sweeps to control loss rate. Lost total returns. Lost 50K drill string weight. (15 hrs) Pull out of hole to investigate loss of string weight. Continue to pump 400 bph of fresh water down annulus while pulling out of hole. No returns to surface. Pull to 6-1/2" drill collar. Cross over sub to jars parted. Top of fish at 6,526' (6 hrs) Make up 11-1/2" series 150 Bowen Overshot dressed with 6-1/2" grapple. Make up jars and drill collars. Run in the hole with drill pipe. (3 hrs) Comments: Mud Data: MW: 8.8 Viscosity: 38 Filtrate: 12 Surveys: 6608ft - 2.77 deg Inc, 199.95 deg Az; 6702ft - 2.92 deg Inc, 195.68 deg Az; 6797ft - 3.95 deg Inc, 192.42 deg Az; Daily Costs ($): 41,439 Well Costs ($): 7,248,603 Drilling Days: 71 Completion Days: 0 Workover Days: 0 26 -Oct -09 Current Depth (ft): 6,873 Hole Drilled (ft): 0 Ave ROP: 14.9 Current Ops: Lay down drilling BHA. Pump thru to clear tools of any debris. Operation Summary: Run in hole with overshot from310' to 6,526'. Top of fish. Make up top drive. Loss rate at 90 bph. (5 hrs) Work down over fish with pump on. Make several attempts to latch onto fish. Unable to engage grapple to latch fish. Work pipe several more times over fish. Latch onto fish PUW 340K, pulled fish free. Loss rate slowed down to 20 bph. (2 hrs) Pull out of hole slow. Swabbing and wet connections. 40-50k overpulls. Work pipe from 6,873' to surface. Loss rate less than 20 bph. (11 hrs) Break down overshot, and lay down same. Break down drilling BHA. Flow thru drill collars to clear debris. Continue to lay down BHA. Loss rate at 20 bph. (6 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 30 Filtrate: 38 Surveys: None Daily Costs ($): 39,442 Well Costs ($): 7,288,045 Drilling Days: 72 Completion Days: 0 Workover Days: 0 27-00-09 Current Depth (ft): 6,873 Hole Drilled (ft): 0 Ave ROP: Current Ops: Reaming to bottom @ 2,990' md. Operation Summary: Pump through recovered Fish ( BHA). (1 hrs) Lay down Float sub, UPA sub & Stabilizer. Service Top Drive & Rig. (1 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: za or va • Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Lay down MWD. Break out Bit. (1 -1 -WT -A -E-1 NO -TW) (1 hrs) Lay down Mud Motor. Clean & clear Rig floor. (1 hrs) Rig down Tongs from 9" Drill collars. RU Tongs for 8" drill collars. Plumb in Air to Srand pipe & blow down. (1 hrs) Pick up & make up Bit (RR #5) & Bit sub for clean out run. (HCC 14 3/4", MX18-DX, serial # 5165034, 3 X 28, 1 X 16). BHA= Bit sub,6-D.C's, Jars, 3- D.C's, XO. To 185' md. (1 hrs) Service Rig & Top Drive. Change out Floor bushings. (1 hrs) RIH w/ Clean out BHA from 185' to 415' md. Work on Tecton Mud log recorder (down load new software). Work on Make-up cathead w/ mechanic. (1 hrs) Continue to Trip in from Derrick. RIH from 415' to 2,896' md. Fill pipe every 10 stands. (5 hrs) Ream from 2,885' to 3,048' and (Packing off & Torquing up). Partial mud losses noted while reaming 10 bph. (1 hrs) Continue to ream from 3,048' to 3,331' md. Hole packed off on connection. Pump sweeps & work pipe. (1 hrs) Circulate & pump sweeps. Clean up hole. Hole still packing off & Torquing up. Extremely tight hole noted. (1 hrs) Work pipe. POH w/ Clean out BHA from 3,331' to 2,860' md. The hole packed off @ 3,187' md. Worked pipe to relieve tight hole. Fired jars. (1 hrs) Circulate & condition mud. Increase viscosity from 30 to 48 sec/gt. Wash & Ream down from 2,860' md. Tag up @ 2,904' and (19' out of the Csg shoe). (6 hrs) Ream tight hole from 2,904' md. Work pipe as needed. 330 gpm / 472 psi. 70 RPM. 10k WOB. PUW 135k, SOW 125k, ROT wt 130k. (1 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 30 Filtrate: 38 Surveys: None Daily Costs ($): 98,961 Well Costs ($): 7,387,006 Drilling Days: 73 Completion Days: 0 Workover Days: 28 -Oct -09 Current Depth (ft): 6,920 Hole Drilled (ft): 47 Ave ROP: Current Ops: Circulate Hi Vis Sweep surface to surface. Prepare to POH for BOP test. Operation Summary: Continue to wash & ream into the hole from 3,126' to 3,235' md. Bring on both pumps to work through bad spot. Pumped Hi Vis Sweeps as needed. Losing 10-20 bph mud returns. (2 hrs) Continue to wash & ream into the hole from 3,235' to 3,805' md. Pumped Hi Vis Sweeps as needed. (Lost full returns @ 3,518' md. Worked pipe and conditioned mud until returns are recovered). Losing 10-20 bph. Conditioning mud as needed. WOB 5k. RPM 60. PUW 150k, SOW 135k, ROT wt 140k. 725 gpm / 950 psi. (4 hrs) Continue to wash & ream into the hole from 3,805' to 5,791' md. Pumped Hi Vis Sweeps as needed. Losing 40 bph. Building & conditioning mud as needed. WOB 5k. RPM 60. PUW 170k, SOW 150k, ROT wt 175k. 725 gpm / 1250 psi. (6 hrs) Service Rig & Top Drive. Inspect Derrick. (1 hrs) Continue to wash & ream into the hole from 5,791' to 6,764' md. Pumped Hi Vis Sweeps as needed. Losing 20-40 bph. Building & conditioning mud as needed. WOB 25k. (2 hrs) Continue to wash & ream into the hole from 6,764' to 6,876' md. Losing 90 bph. Building & conditioning mud as needed. WOB 25k. RPM 60. PUW 198, SOW 191 k, ROT wt 195k. 650 gpm / 1025 psi. (1 hrs) Continue to wash & ream into the hole from 6,876' to 6,880' md. NOTE: Tagged bottom @ 6,873' md, confirm bottom of hole. Losing 115 bph. Building & conditioning mud as needed. Pump Hi Vis Sweep. (1 hrs) Drill from 6,880' to 6,886' md. Losing 190 bph. Building & conditioning mud as needed. Pump Hi Vis Sweep. WOB 25k. RPM 60. PUW 200k, SOW 195k, ROT wt 198k. 650 gpm / 1025 psi. (1 hrs) Drill from 6,886' to 6,891' md. Losing 110 bph. Building & conditioning mud as needed. WOB 24k RPM 60. PUW 200k, SOW 195k, ROT wt 198k / 4-6k Tq. 685 gpm / 1050 psi. (1 hrs) Printed: 12:06 15 -Oct -10 R/MBase r-age:.sv or as • Well Summary Report Well ID: G-1 0 .knek Electric Association, Inc, Well Name: 0-1 Field: King Salman Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Continue to drill from 6,891' to 6,906' md. Losing 65 bph. Building & conditioning mud as needed. WOB 24k RPM 60. PUW 200k, SOW 195k, ROT wt 198k / 4-6k Tq. 685 gpm / 1050 psi. (3 hrs) Continue to drill from 6,906' to 6,920' md. Losing 70 bph. Building & conditioning mud as needed. WOB 24k RPM 60. PUW 200k, SOW 195k, ROT wt 198k / 4-6k Tq. 685 gpm / 1050 psi. Pump Hi Vis Sweep. Prepare to POH for BOP test. (2 hrs) Comments: Mud Data: MW: 8.7 Viscosity: 61 Filtrate: 9.8MW: 8.65 Viscosity: 44 Filtrate: 9.6 Surveys: None Daily Costs ($): 44,910 Well Costs ($): 7,431,916 Drilling Days: 74 Completion Days: 0 Workover Days: 0 29 -Oct -09 Current Depth (ft): 6,920 Hole Drilled (ft): 0 Ave ROP: 5.9 Current Ops: Logging up with Accoustic caliper / Gamma ray / Temperature survey logs. Operation Summary: Circulate the hole clean. Service Rig & Top Drive. Inspect derrick Look for ice build up. Blow down Top Drive. (1 hrs) POH with Clean out BHA. POH from 6,917' to 1,348' md. The hole is in good condition. Trip chart is very clean. No overpull noted. (5 hrs) Continue to POH. POH from 1,348' to 166' md. Lay down Jars. (1 hrs) POH from 116' to surface. Break Bit. & Bit sub. Stand back 8" D.C's. (1 hrs) Blow down Stand pipe. Clean & clear Rig floor. (1 hrs) Pick up test A. Make up test Jt to test Plug. Rig up BJ services. Drain BOP stack. Land & set test Plug. Pre -job safety meeting on testing BOP's. All personnel present. (1 hrs) De -Ice Choke valves & HCR valve. (1 hrs) Fill BOP stack & test lines. Test lines to 4000 psi - good. All tests for 5 charted minutes. Pressure test 16-3/4" BOPE 250 psi low; 3,000 psi hi. Pressure test annular 250/2,500 psi. Continue BOP test. Pressure test pipe rams, choke mainifold, inside choke and kill line, and outside choke and kill line. Pull test joint. Close and test blind rams. Reset test joint and function test acuumlator. Good Test. 200 psi recovery time with new accumulator pump 32 seconds. Full pressure recovery is 205 seconds. 8 bottles @ 2200 psi. AOGCC given 24 hours notice prior to test. John Crisp AOGCC waived witness of test. A variance for a 24 hr delay In BOP testing was was granted by Winton Aubert (AOGCC) due to Fishing & clean out activities. (6 hrs) Rig down BJ services. Prepare & rig up E -line loggers. Blow down Choke & Choke line. (1 hrs) Thaw Choke line. Replace hydraulic line on HCR valve. SIM -ops run float bar to establish fluid level: Fluid level @ 189' md. (3 hrs) PJSM w/ E -line loggers & all personnel on location. Rig up loggers. (2 hrs) Run in hole with Accoustic caliper / Gamma Ray / Temperature survey logs. Tag bottom hard @ 6,798' md. Attempt to get past bridge - No -Go. Establish parameters and log up. (1 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 71 Filtrate: 9.8 Surveys: None Daily Costs ($): 40,389 Well Costs ($►: 7,472,305 Drilling Days: 75 Completion Days: 0 Workover Days: 30 -Oct -09 Current Depth (ft): 6,917 Hole Drilled (ft): 0 Ave ROP: Current Ops: Running in the hole to drill ahead. Operation Summary: Run - Atlas E -line logs. Run # 1. Density, Gamma Ray & Temperature survey. Logging Tool sat down hard @ 6,798' md. Made several attempts to work past 6,798' md. No -Go. No drag noted when picking up. Log up from 6,798' md. Bottom hole temp 115 degrees F. Large washout noted just below Csg shoe. (4 hrs) Rig Down loggers. Clear Rig floor. Load up NMDC's. & De-ice same. (1 hrs) Printari. 19•nR 15-nrt-1n R/MBase Page: 31 of 98 • • Well Summary Report knek Electric Association, Inc, j Well lD: G-1 Well Name: G-1 N° Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough De-ice & clear formation from NMDC's. Load Stab, Mud Motor & MWD. (5 hrs) Handle NMDC's. Work D.C's. into derrick. Pick up Mud Motor. (1 hrs) Make up Bit, Stabilizer, MWD, Filter sub, UPA & NMDC's to 112' md. (1 hrs) Pick up 9 1/2" D.C's from 112' to 336' md. (2 hrs) Pick up 6 1/2" D.c's from 336' to 619' md. (2 hrs) RIH with BHA on 5" DP from 619' to 708' md. Shallow test MWD. Blow down Top Drive. (2 hrs) RIH w/ drilling assembly on 5" DP from 708' to 2,044' md. (1 hrs) POH w/ 5' DP to 708' and to retrieve surface DP screen left in DP. (1 hrs) RIH w/ 5" DP from 708' and to 2,793' md. Fill pipe & test directional tools. Blow down Top drive. (2 hrs) RIH w/ drilling assembly to 3,740' md. Fill pipe. Blow down Top Drive. (1 hrs) Continue to RIH w/ 5" DP from 3,740' to 4,700' md. (1 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 70 Filtrate: 9.6 Surveys: None Daily Costs ($): 354,659 Well Costs ($): 7,826,964 Drilling Days: 76 Completion Days: 0 Workover Days: 31 -Oct -09 Current Depth (ft): 7,200 Hole Drilled (ft): 283 Ave ROP: Current Ops: Directionally drilling ahead. Operation Summary: Continue to RIH from 4,687' to 5,637' md. Fill pipe. RIH from 5,637' to 6,765' md. Fill pipe. (2 hrs) Wash & ream from 6,765' to 6,917' md. Tag bottom @ 6,917' md. Drill ahead to 6,920' md. Mud losses @ 64 bph. (1 hrs) Continue to drill ahead from 6,920' to 6,950' md. Mud losses: 10:OOam @ 114 bph / 11:00am @ 138 bph / 12:00 @ 90 bph. WOB 50k, RPM 65 - Tq 4-5k. 577 gpm / 1660 psi. PUW 250k, SOW 240k, ROT wt 245k. (3 hrs) Continue to directionally drill ahead from: 6,950' to 6,963' md. Losses @ 90 bph. / 6,963' to 6,977' md. Losses @ 80 bph. / 6,977' to 6,988' md. Losses @ 100 bph. / 6,988' to 7,002' md. Losses @ 80 bph. / 7,002' to 7,015' md. Losses @ 100 bph. / 7,015' to 7,028' md. Losses @ 100 bph. / 7,028' to 7,039' md. Losses @ 50 bph. (7 hrs) Service Rig, Top Drive & Draw works. Drill ahead from 7,039' to 7,047' md. Losses @ 50 bph. (1 hrs) Directionally drill ahead from: 7,047' to 7,062' md. Losses @ 80 bph. / 7,062' to 7,081' md. Losses @ 100 bpm. / 7,081' to 7,098' md. Losses @ 90 bph. / 7,098' to 7,112' md. Losses @ 90 bph. (4 hrs) Directionally drill ahead from: 7,112' to 7,130' md. Losses @ 93 bph. / 7,130' to 7,141' md. Losses @118 bph. NOTE: Time change (Add 1 Hr) 7,141' to 7,167' md. losses @ 110 bph. (hole took a 30 bbl drink @ 7,163' md). (3 hrs) Directionally drill ahead from: 7,167' to 7,180' md. Losses @ 120 bph. PUW 250k, SOW 240k, ROT - wt 245k. Tq 4-9k. 575 gpm / 1600 psi. (1 hrs) Directionally drill ahead from: 7,180' to 7,197' md. Losses @ 288 bph. (1 hrs) Drill to 7,200' md. Losses @ 288 bph. CBU. Stand back drilling stand and 1 more stand to 7,047' md. Build & condition mud. (1 hrs) Comments: Mud Data: MW: 8.4 Viscosity: 61 Filtrate: 8.6MW: 8.6 Viscosity: 60 Filtrate: 7.4 Surveys: 7088ft - 4.19 deg Inc, 193.11 deg Az; Daily Costs ($): 78,567 Well Costs ($): 7,905,531 Drilling Days: 77 Completion Days: 0 Workover Days: 0 01 -Nov -09 ICurrent Depth (ft): 7,455 Hole Drilled (ft): 255 Ave ROP: Current Ops: Building mud volume and conditioning mud. Reciprocating & rotating drill string. Operation Summary: Or:n4ci•I• 17•nC. 1�_(1nf_1n R/MRACP Paae: 32 of 98 • CN Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Drill ahead from 7,197' to 7,200' md. Losses @ 270 bph. Stand back 1 stand. Circulate, build & Condition mud. Reciprocate & rotate pipe. (2 hrs) Stop circulating due to the volume of losses. Build surface volume & condition mud to specs. (2 hrs) Directionally drill ahead from 7,200' to 7,214' md. Losses @ 82 bph. (1 hrs) Directionally drill ahead from 7,214' to 7,227' md. Losses @ 80 bph. PUW 225k, SOW 240k, ROT wt 250k. 575 gpm / 1660 psi. (1 hrs) Drill ahead from 7,227' to 7,236' md. Losses @ 70 bph. / Drill to 7 254' md. Losses @ 75 bph. / Drill to 7,268' md. Losses @ 95 bph. / Drill to 7,283' md. Losses @ 90 bph. / Drill to 7,299' md. Losses @ 190 bph-Pump LCM Sweep. / Drill to 7,314' md. Losses @ 100 bph. / Drill to 7,327' md. Losses @ 80 bph. / Drill to 7,336' md. Losses @ 130 bph. -Service Rig, Draw works & Top Drive. (8 hrs) Drill from 7,336' to 7,354' md. Losses @ 80 bph. / Drill to 7,371' md. Losses @ 85 bph. -Pump Hi Vis Sweep. / Drill to 7,390' md. Losses @ 85 bph. --NOTE @ 7,365' and an increase in ROP was noted @ up to 28 ft/hr from an average ROP of 18-20 ft/hr. -- (3 hrs) Drill ahead from 7,390' to 7,407' md. Losses @ 85 bph. 515 gpm / 1550 psi. PUW 255k, SOW 250k, ROT wt 253k. WOB 54k. RPM 80 @ 6-12k Tq. (1 hrs) Drill from 7,407' to 7,422' md. Losses @ 92 bph. / Servive Rig, Draw works & Top Drive. Drill from 7,422' to 7,430' md. Losses @ 112 bph. (2 hrs) Drill ahead from 7,430' to 7,442' md. Losses @ 122 bph. -Pump Hi Vis Sweep. Drill to 7,455' md. losses @ 118 bph. (2 hrs) Pick up 1 stand. Reciprocate & rotate without pumps on. Build Mud volume / condition mud. (2 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 41 Filtrate: 10AMW: 8.6 Viscosity: 57 Filtrate: 9.8 Surveys: None Daily Costs ($): 45,292 Well Costs ($): 7,950,823 Drilling Days: 78 Completion Days: 0 Workover Days: 02 -Nov -09 I Current Depth (ft): 7,700 Hole Drilled (ft): 245 Ave ROP: Current Ops: Drilling 14-3/4" open hole section. Fluid loss rate at 100 bph. Operation Summary: Drill from 7,455 ft to 7,700 ft. Rotary drill 14-3/4" open hole section. PUW = 258K, SOW = 253K, RTW = 255K. Pump Rate 577 GPM at 1,500 psi. Circulate and condition mud at 7,459'. Service rig and top drive. Fluid loss rate avg. +/- 90 -100 bph. Drilling with only one mud pump. Thermasource attempting to aquire parts to repair mud pump #1. (24 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 63 Filtrate: 9.2MW: 8.6 Viscosity: 41 Filtrate: 9.4 Surveys: None Daily Costs ($): 61,375 Well Costs ($): 8,012,198 Drilling Days: 79 Completion Days: 0 Workover Days: 0 03 -Nov -09 I Current Depth (ft): 7,860 Hole Drilled (ft): 160 Ave ROP: 10.2 Current Ops: Pull drill pipe out of hole to run 11-3/4" liner. Operation Summary: Drill from 7,700 ft to 7,860 ft. Rotary drill 14-3/4" open hole section. PUW = 260K, SOW = 250K, RTW = 256K. Pump Rate 577 GPM at 1,700 psi. Service rig and top drive. Fluid loss rate avg. +/- 90 -100 bph. Drilling with only one mud pump. TD hole section (12 hrs) Circulate and condition mud. CBU 2x bottoms up. Build surface volume. Rotate and recpricate drill pipe while circulating. Good hole conditions. Loss rate at 70 bph. (3.5 hrs) Wiper Trip to 6,860 ft. Perform wiper trip from 7,860' to 6,860'. Hole in good condition. Trip back to bottom. No fill on bottom. Loss rate at 60 bph. (1 hrs) Circulate and condition mud. CBU 2x bottoms up. Build surface volume. Rotate and recpricate drill pipe while circulating. Good hole conditions. Loss rate at 65 bph. (4 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: ss or as N°` Well Summary Report knek Electric Association, Inc. Well1D: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Pull drill pipe out of hole from 7,860' to run 11-3/4" liner. (3.5 hrs) Comments: 04 -Nov -09 05 -Nov -09 Mud Data: Surveys: Daily Costs ($): Drilling Days: MW: 8.6 Viscosity: 46 Filtrate: 9.8MW: 8.6 Viscosity: 52 Filtrate: 9.8 7174ft - 4.13 deg Inc, 198.6 deg Az; 7799ft - 4.07 deg Inc, 190.68 deg Az; 47,092 Well Costs ($): 80 Completion Days: Current Depth (ft): 7,860 Hole Drilled (ft): Current Ops: Running in hole with 11-3/4" casing. 8,059,290 0 Workover Days: 0 0 Ave ROP: 12 Operation Summary: Pull out of the hole with drill pipe to 2,687'. Fluid loss rate at 60-90 bph. (1.5 hrs) Install hanging line on blocks. Slip & Cut 200' drilling line. Remove hanging line from blocks. Service rig & top drive. (3 hrs) Pullout of hole with drill pipe from 2,687' of BHA. (2.5 hrs) Lay down BHA, 9-1/2" drill collars, Jars, NM drill collars, MWD, Mud Motor, & 14-3/4" drill bit. (6 hrs) Service rig & top drive. Clear all handling tools from rig floor. Clean top dog house. (1 hrs) Run fluid level indicator. Found top of fluid level in wellbore at 310'. (0.5 hrs) Held PJSM with all personnel. Rig up casing tools to run 11-3/4" casing. Make up Chancellor cementing head. Load drill pipe dart. (1 hrs) Pick up joint #1 of 11-3/4" casing Make up float equipment. Check floats, OK. (1.5 hrs) Pick up and make up 11-3/4" casing. Install centralizers and fill pipe. Run in hole with casing to 1,400'. Fluid loss rate at 30-50 bph. (7 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 48 Filtrate: 9.8MW: 8.6 Viscosity: 49 Filtrate: 9.8 Surveys: None Daily Costs ($): 86,687 Well Costs ($): 8,145,977 Drilling Days: 81 Completion Days: 0 Workover Days: Current Depth (ft): 7,860 Hole Drilled (ft): 0 Ave ROP: Current Ops: Mix and pump cement for 11-3/4" liner. 0 Operation Summary: Run in the hole with 11-3/4" casing to 2,885'. Make up circulating swedge. Fluid loss rate at 60-90 bph. (4.5 hrs) Circulate casing vol at 5 bpm 500 psi. Fluid loss rate at 90 bph. (0.5 hrs) Run in the hole with 11-3/4" casing from 2,885' to 5,322'. Fluid loss rate at 60-90 bph. (6 hrs) Make up 11-3/4" liner hanger. Run in hole, unable to pass hanger thru wellhead. Pick up hanger back to surface. Setting slips missing from hanger. Remove all slips from hanger. Run in hole thru wellhead, OK. (2 hrs) Circulate drill pipe vol at 5 bpm 500 psi. Fluid loss ra60-90 bph. (0.5 hrs) Run in hole with 11-3/4" casing liner on drill pipet ,860'. Rotate and release running tool from liner hanger. (3.5 hrs) Make up drill pipe pup joint with cement head. Rig up circulating hoses. (1 hrs) Break circulation. Circulate casing vol at 5 bpm 980 psi. Fluid loss rate at 60-90 bph. (2.5 hrs) Hold PJSM with all crew members. Review cement pumping schedule. (0.5 hrs) BJ Services pump 5 bbls water. Pressure test cement lines to 3,000 psi, OK. Mix and pump 12.8 ppg lead slurry cement. (3 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 45 Filtrate: 9.8 Surveys: None Printer/ 12.06 15-0ct-10 R/MBase 34 of 98 • -N" Well Summary Report knek Electric Association, Inc: Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Sor©ugh Daily Costs ($): 421,400 Well Costs ($): 8,567,377 Drilling Days: 82 Completion Days: 0 Workover Days: 0 06 -Nov -09 Current Depth (ft): 7,860 Hole Drilled (ft): 0 Ave ROP: Current Ops: Change out torque convertor on mup pump #1. Adjust brakes on drawworks. Work on drill pipe spinners. Operation Summary: Continue pumping cement job, mix and purr678 Is 12.8 ppg lead slurry cement follwed by 120 bbls 15.5 ppg tail slurry. Drop drill pipe dart, p 5 bbls water to clear cement lines. Switch t pumps displace cement with 636 bbls of drilling fluid. Observed partiall returns during pumping cement. Bump casing wiper plug with calculated displacement at 1,500 psi. CIP at 07:10 hrs. (1.5 hrs) Pull drill pipe from liner top. Break off and lay down cementing head. Rig up reverse circulating hoses. Close annular. Reverse circulate from liner top. Fluid loss rate 45-60 bph. No cement returns to surface. Open annular. (0.5 hrs) Pull drill pipe from hole at 2,551' to surface. (2 hrs) Lay down liner hanger running tool. Clear rig floor. (1 hrs) Pick up and make up BOP test joint and plug. (1 hrs) Set16-3/4" test plug, rig up BJ Services pump truck. Fill BOP stack with test fluid. (1 hrs) Pressure test lines to 4000 psi - good. Pressure test 16-3/4" BOPE 250 psi low, 3,000 psi hi. Pressure test annular 250/2,500 psi. Pressure test pipe rams, choke mainifold, inside choke and kill line, and outside choke and kill line. Pull test joint. Close and test blind rams. Unable to test accumulator. Regulator control valve failed. Contacted AOGCC PI Lou Grimaldi for approval to proceed ahead, OK. Jim Regg AOGCC waived witness of test. (6 hrs) Pull 16-3/4" test plug and lay down same. Blow down test lines and choke manifold. Monitor well. (1 hrs) Clear rig floor, Service top drive and rig. Work on mud pump # 1. Change out torque convertor. (1 hrs) Change out torque convertor on Mud Pump # 1. Change oil in top drive engine. Adjust brakes on drawworks. Investigate issues with drill pipe spinner. (9 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 41 Filtrate: 9.8 Surveys: None Daily Costs ($): 30,755 Well Costs ($): 8,598,132 Drilling Days: 83 Completion Days: 0 Workover Days: 07 -Nov -08 I Current Depth (ft): 7,860 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in the hole with 10-5/8" bit to clean out liner. Operation Summary: Repair mud pump # 1. Replace torque convertor. Adjust brakes on drawworks. Service rig and top drive. (3 hrs) Run in hole with fluid level indicator. Fluid level at 218' from surface = 50 bbls hole volume. (0.5 hrs) Make up 12-1/4" bit & drill collars. Run in the hole to 1,589'. (5.5 hrs) Wellhead valve left open. Mud spill from wellcellar. Rig crew and roustabouts clean up mud spill. (2 hrs) Run in the hole with 12-1/4" bit to clean out liner. Tag up on liner pack off bushing at 2,586'. Make up top drive. Break circulation. (2.5 hrs) Drill up packoff bushing and clean out liner to 2,589'. (0.5 hrs) Circulate bottoms up, rotate and recripocate drill string. (1 hrs) Shut in well. Attempt to test liner lap. Pump away fluid at rate 450 psi 4 bpm. -10.5 hrs) Pull out of hole with 12-1/4" Bit. Break off bit. (3.5 hrs) Thaw out 2" bleeder valves on both mud pumps. (1.5 hrs) Make up 10-5/8" Bit & drill collars. Run in the hole to clean out liner for bridge plug. (3.5 hrs) Comments: Printed: 12:06 15 -Oct -10 R/MBase rage: s0 Oleo .... Well Summary Report .knek Electric Association, Inc. NAA Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Mud Data: MW: 8.6 Viscosity: 41 Filtrate: 9.8 Surveys: None Daily Costs ($): 350,021 Well Costs ($): 8,948,153 Drilling Days: 84 Completion Days: 0 Workover Days: 0 08 -Nov -09 Current Depth (ft): 7,860 Hole Drilled (ft): 0 Ave ROP: Current Ops: Waiting on cement. Performing general rig maintenance. Observed fluid level at flow line. Operation Summary: Run in the hole with 10-5/8" Bit. Clean out to 3,000' (3 hrs) Circulate bottoms up from 3,000' (1 hrs) Attempt to pressure test 16" x 11-3/4" liner lap. Pump rate 4 bpm 285 psi, fluid pumping away. (0.5 hrs) Pull out of hole with 10-5/8" bit to surface. (3.5 hrs) Makeup Baker 11-3/4" Cement Retainer Bridge Plug, Run in the hole to 2,650'. (3 hrs) Set packer inside 11-3/4" casing by rotating drill string 13 turns to the right. Pressure up below packer to test casing. Pressure test at 745 psi, OK. Unsting from packer. (1 hrs) PJSM with all crew members involved in cement job. Rig up cement lines from pump unit to drill pipe tE� (1 hrs) Pressure test cement line to 2,500 psi. OK, Pump 47 bbls of water, mix and pump ement slurry. Observed returns stop after 200 bbis cement pump. Follow cement of mud down the drill pipe. Fluid loss rate increased to over 200 bph. CIP at 21:00 hrs. (2 hrs) Break down cement lines. Clear rig floor. (0.5 hrs) Pull drill pipe from hole. Break down Baker Running tool. Fluid loss rate at 200 bph. (2.5 hrs) Waiting on cement. Install new antifall device, Winterize fresh water pump. Install longer hanging line for drill pipe spinners. Install 2" fresh water manifold in mud pits. Service rig and top drive. Thaw out #1 charge pump. (6 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 41 Filtrate: 9.8 Surveys: None Daily Costs ($): 27,801 Well Costs ($): 8,975,954 Drilling Days: 85 Completion Days: 0 Workover Days: 0 09 -Nov -09 I Current Depth (ft): 7,860 Hole Drilled (ft): 0 Ave ROP: Current Ops: Cleaning out cement inside 11-3/4" casing. Operation Summary: WOC. Thaw out #1 mud pump. Change oil in light plants. (1 hrs) Make up 14-3/4" Bit, Run in the hole to clean out to 16" x 11-3/4" liner lap. (5.5 hrs) Close pipe rams, Pressure up on liner lap with 1,000 psi, OK. Bled off pressure. Open pipe rams. (0.5 hrs) Pull out of hole with 14-3/4" bit. Stand back drill collars. (3 hrs) Make up 10-5/8" bit and drill collars. Run in the hole to top of 11-3/4" cement retainer. Tag up on cement at 2,579'. (3.5 hrs) Clean out cement from inside 11-3/4" casing from 2,579' to 2,645'. Top of 11-3/4" cement retainer. (4.5 hrs) Drill up 11-3/4" cement retainer from 2,645' to 3,191'. Pump Rate 10 bpm at 700 psi. (4 hrs) Run in the hole with drill pipe, push 11-3/4" cement reatiner downhole to 5,850'. (2 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 40 Filtrate: 9.8 Surveys: None Printed: 12:06 15 -Oct -10 RIMBase rage: 10 or as • • Printed: 12:06 15 -Oct -10 R/MBase rage: it or 96 Well Summary Report .knek Electric Association, Inc. N Well ID: G-1 Well Name: G-1 '. Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Daily Costs ($): 55,767 Well Costs ($): 9,031,721 Drilling Days: 86 Completion Days: 0 Workover Days: 0 10 -Nov -09 Current Depth (ft): 7,860 Hole Drilled (ft): 0 Ave ROP: Current Ops: Make up BHA with 10-5/8" drill bit. Run in the hole with drill collars. Operation Summary: Run in hole with drill pipe, push cement retainer downhole, stack out at 6,740'. (0.5 hrs) Make up top drive. Break circulation. Wash down pushing retainer from 6,740' to 7,698'. (1.5 hrs) Wash down pushing cement retainer downhole from 7,698' to 7,814'. (3 hrs) Drill up cement retainer and float collar from 7,814' to 7,858'. (1.5 hrs) Circulate and condition mud from 7,858. Observed clean returns at shakers. Blow down top drive (2 hrs) Pull out of hole with drill pipe from 7,858' to surface. Stand back drill collars. Service rig and top drive. (6.5 hrs) Prepare to cut & slip drilling line. Make up hanging line on blocks. Set one stand of drill pipe in table. (1 hrs) Cut & slip drilling line. Repair KR valve on Koomey. (4 hrs) Complete BOPE test. Funtion test Koomey. Start at 2,980 psi, 1,500 psi low. start recovery from 200 psi = 221 seconds. (1 hrs) Make up 10-5/8" drill bit & BHA, Run in hole with drill collars. (3 hrs) Comments: Mud Data: MW: 8.55 Viscosity: 34 Filtrate: 10.4 Surveys: None Daily Costs ($): 60,195 Well Costs ($): 9,091,916 Drilling Days: 87 Completion Days: 0 Workover Days: 0 11 -Nov -08 Current Depth (ft): 8,000 Hole Drilled (ft): 140 Ave ROP: Current Ops: Circulate and condition mud. Operation Summary: Make up BHA. Run in the hole to 696'. (1.5 hrs) Install shelter around driller. (2.5 hrs) Repair tong line guide from cat head. (3 hrs) Run in the hole with drill pipe. Pick up single joints from pipe rack. Run in hole to 1,639'. (1 hrs) Replace make up line on cat head, service rig, adjust brakes on drawworks. (1 hrs) Run in the hole from 1,639' to 7,858', tag up on 11-3/4" float shoe. (3 hrs) Drill float shoe and clean out to 7,860'. (1 hrs) Drill from 7,860 ft to 7,880 ft. Drill 10-5/8" open hole section. No fluid losses. (1 hrs) Circulate and condition mud in prepartion for FIT. Hole taking fluid at 200 bph. Unable to perform FIT due fluid losses. (1 hrs) Drill from 7,880 ft to 8,000 ft. Drill 10-5/8" open hole section. Fluid loss rate between 50-100 bph. (6 hrs) Circulate and condition mud. Pull up into 11-3/4" casing. Circulate and condition mud. (3 hrs) Comments: Mud Data: MW: 8.55 Viscosity: 47 Filtrate: 10.6 Surveys: None Daily Costs ($): 209,825 Well Costs ($): 9,301,741 Drilling Days: 88 Completion Days: 0 Workover Days: 0 Printed: 12:06 15 -Oct -10 R/MBase rage: it or 96 10 s N ` Well Summary Report knek Electric Association, Inc. 3 Well ID: G-1 Well Name: G-1 ' Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 12 -Nov -09 Current Depth (ft): 8,200 Hole Drilled (ft): 200 Ave ROP: 20.0 Current Ops: Drilling 10-5/8" open hole section. Fluid loss rate avg 75 to 120 bph. Operation Summary: Circulate and condition mud. Fluid loss at 75 bph. (2 hrs) Pull drill string up into 11-3/4" casing. Blow down top drive. Secure well, close pipe rams. (1 hrs) Stand by waiting on Drilling Permit from DNR to drill ahead past 8,000'. Repair agitator from active pit system. Change oil in drawworks. Repair lights on fuel tank. General housekeeping. (9 hrs) Drill from 8,000 ft to 8,200 ft. Rotary drill 10-5/8" open hole section. Observed 9 deg temperature and flow increase from 8,150' to 8,167'. Fluid loss avg 75-120 bph. (12 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 35 Filtrate: 11.5 Surveys: None Daily Costs ($): 37,210 Well Costs ($): 9,338,951 Drilling Days: 89 Completion Days: 0 Workover Days: 0 13 -Nov -09 Current Depth (ft): 8,530 Hole Drilled (ft): 330 Ave ROP: 16.7 Current Ops: Pull drill string out of hole to test BOPE. Operation Summary: Drill from 8,200 ft to 8,530 ft. Drill 10-5/8" open hole section. Fluid loss rate at 70-100 bph. Trouble shoot boiler issues. Stop drilling to test BOPE per DNR Drilling permit. (17 hrs) Circulate and condition mud for trip out. Thaw out frozen valves on kill line and mud pumps. Fluid loss rate at 70-100 bph. Blow down top drive. Service rig and top drive. Boiler down, continue to trouble shoot issues with boiler. (3.5 hrs) Pull out of hole with drill string to perform BOP test. Fluid loss rate at 70-100 bph. Continue to work on Boiler. Current bit depth at 5,630'. (3.5 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 59 Filtrate: 10 Surveys: None Daily Costs ($): 39,810 Well Costs ($): 9,378,761 Drilling Days: 90 Completion Days: 0 Workover Days: 0 14 -Nov -09 Current Depth (ft): 8,530 Hole Drilled (ft): 0 Ave ROP: 19.4 Current Ops: Trouble shoot electrical issues with boiler. Use portable space heaters on rig skid units for heat. Operation Summary: Pull out of hole from 5,630' to surface. Rack back BHA. Observed drill collar had pin end twisted off. Break off bit and grade same. (9 hrs) Work on electricial issues with boiler. Thaw out pumps and valves. Install new insulated windwall tarps around subbase. Place extra heaters around rig area to heat koomey and choke skid. Put heat on subbase. Attempt to test BOPE, unable to pressure up on equipment due to cold. Cancel BOPE test until boiler is up and running. Fill pits with fluid from dirty water waste pit. Replace frozen valves on boiler lines. (15 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 31 Filtrate: 12.2 Surveys: 8434ft - 3.4 deg Inc, 186.95 deg Az; Daily Costs ($): 50,837 Well Costs ($): 9,429,598 Drilling Days: 91 Completion Days: 0 Workover Days: 0 15 -Nov -09 Current Depth (ft): 8,530 Hole Drilled (ft): 0 Ave ROP: Current Ops: Continue Testing BOPE. Printed: 12:06 15 -Oct -10 R/MBase rage: sa or as Well Summary Report .knek Electric Association,fnC, Well ID: G-1 Well Name: G-1 Field: King Salmon Sect 14 Town: 17S Ring: 44W County: Bristol Bay Borough Operation Summary: Pull 16-3/4" BOP test plug. Unable to test BOPE due to cold weather and boiler is down. (1 hrs) Continue to repair electrical issues with boiler. Lay down damaged drill collar from derrick. Pick up new drill collar. Rack back in derrick. (5 hrs) Completed boiler repairs. Run boiler. Put steam around rig. Thaw out steam lines and heaters. (7 hrs) PJSM with all crew members in preparation of BOPE test. Fill stack with test fluid. Pressure test lines to 4,000 psi, OK. (1 hrs) Test 16-3/4" BOP stack. Unable to hold pressure. Pull test plug. Redress with new test plug rubbers. Reset plug. Begin BOPE test. Pressure test 16-3/4" BOPE 250 psi low, 3,000 psi hi. Pressure test annular 250/2,500 psi. Pressure test pipe rams, choke mainifold, inside choke and kill line, and outside choke and kill line. Pull test joint. Thaw out choke line and test line. Close and test blind rams. John Crisp AOGCC waived witness of test. (10 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 94 Filtrate: 7.4 Surveys: None Daily Costs ($): 33,022 Well Costs ($): 9,462,620 Drilling Days: 92 Completion Days: 0 Workover Days: 0 16 -Nov -09 I Current Depth (ft): 8,675 Hole Drilled (ft): 145 Ave ROP: Current Ops: Drilling 10-5/8" open hole section. Fluid loss rate at 75-100 bph. Operation Summary: Complete BOPE test. Thaw out choke lines and manifold. Perform Koomey accumlator test. Mud Logger completed test of all gas sensors. Witness of BOPE test waived by John Crisp, AOGCC PI. (5 hrs) Service rig, Thaw out top drive and service same. (1 hrs) Thaw out load cell for make up tongs. Change out rotary bushings. (1 hrs) Make up new 10-5/8" bit and BHA. Run in the hole to 1,355'. Trouble shoot and set crown saver. (4 hrs) Run in the hole with 10-5/8" drilling assembly. Circulate at 2,460'& 5,200'. Run in the hole to 8,404'. Make up top drive, break circulation and precaution ream to bottom 8,530'. Fluid loss rate at 100 bph. (8 hrs) Drill from 8,530 ft to 8,675 ft. Drill 10-5/8" open hole section. Fluid loss rate 75-100 bph. Pump LCM sweeps to control fluid losses. (5 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 95 Filtrate: 7.6 Surveys: None Daily Costs ($): 137,073 Well Costs ($): 9,599,693 Drilling Days: 93 Completion Days: 0 Workover Days: 0 17 -Nov -09 Current Depth (ft): 9,089 Hole Drilled (ft): 414 Ave ROP: 29.0 Current Ops: Drilling 10-5/8" open hole section. Control fliuid losses with LCM. Operation Summary: Drill from 8,675 ft to 9,089 ft. Drill 10-5/8" open hole section. Fluid loss rate at 75-100 bph. Pump LCM sweeps to control fluid loss. (22 hrs) Lay down wash out joint of drill pipe, Total 3 joints of drill pipe laid down. (2 hrs) Comments: Mud Data: Surveys: Daily Costs ($): Drilling Days: Printed- 12.06 15 -Oct -10 MW: 8.6 Viscosity: 36 Filtrate: 11.8 None 125,257 Well Costs ($): 9,724,950 94 Completion Days: 0 Workover Days: 0 R/MBase Page: 39 of 98 ��i • Printed: 12:06 15 -Oct -10 R/MBase rage: 4v or an Well Summary Report knek Electric Association, Inc. 4 Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 18 -Nov -09 Current Depth (ft): 9,463 Hole Drilled (ft): 374 Ave ROP: 18.8 Current Ops: Drill 10-5/8" Open Hole Section. Fluid loss rate at 75-100 bph. Control fluid loss with LCM. Operation Summary: Drill from 9089 ft to 9463 ft. Drill 10-5/8" open hole section. Service top drive and rig. Change out 3 joints drill pipe, froze tool joint. Thaw out tool joint at connection time. Fluid loss rate at 75-100 bph. Control fluid loss rate with LCM. (24 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 42 Filtrate: 11.2 Surveys: None Daily Costs ($): 47,782 Well Costs ($): 9,772,732 Drilling Days: 95 Completion Days: 0 Workover Days: 0 19 -Nov -09 Current Depth (ft): 9,780 Hole Drilled (ft): 317 Ave ROP: 15.6 Current Ops: Drill 10-5/8" open hole section. Fluid loss rate at 75-100 bph. Control fluid losses with LCM sweeps. Operation Summary: Drill from 9,463 ft to 9,567 ft. Drill 10-5/8" open hole section. Fluid loss at 75-100 bph. Observed hi -torque and hole packing off. Mix LCM sweep. (5 hrs) Circulate LCM sweep. Work drill string thru tight spot until torque is reduced. Rotate and reciprocate drill string from 9,500' to 9,560'. (2.5 hrs) Drill from 9,567 ft to 9,756 ft. Drill 10-5/8" open hole section. Fluid loss rate at 75-100 bph. Control fluid loss rate with LCM sweeps. Observed tight hole and hi -torque. (12.5 hrs) Circulate and condition mud. Mix and pump LCM sweep. Raise vis by adding gel to mud system. Rotate and reciprocate drill string until hole cleans up and torque is reduced. (3 hrs) Drill from 9,756 ft to 9,780 ft. Drill 10-5/8" oprn hole section. Fluid loss rate at 75-100 bph. Control fluid losses with LCM sweeps. (1 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 38 Filtrate: 10.5 Surveys: None Daily Costs ($): 39,902 Well Costs ($): 9,812,634 Drilling Days: 96 Completion Days: 0 Workover Days: 0 20 -Nov -09 Current Depth (ft): 9,914 Hole Drilled (ft): 134 Ave ROP: 17.1 Current Ops: Pull out of hole to run temperature, pressure, and open hole logs. Operation Summary: Drill from 9,780 ft to 9,914 ft. Drill 10-5/8" open hole section. Fluid loss rate 75-100 bph. Control fluid loss with LCM. Observed formation change and ROP drop off. TD hole section at 9,914' (13.5 hrs) Circulate bottoms up, Rotate and reciprocate drill string. Hole in good condition. (1.5 hrs) Wiper Trip to 7,860 ft. Run back to bottom at 9,914. Observed 7' of fill on bottom. (4 hrs) Circulate bottoms up, Rotate and reciprocate drill string. Hole in good condition. (2 hrs) Drop survey instrument. Pull out of hole to run open hole logs. (3 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 42 Filtrate: 9.8 Surveys: None Daily Costs ($): 44,416 Well Costs ($): 9,857,050 Drilling Days: 97 Completion Days: 0 Workover Days: 0 21 -Nov -09 current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: 9.9 Current Ops: Run in the hole with 8-5/8" casing. Printed: 12:06 15 -Oct -10 R/MBase rage: 4v or an N Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Operation Summary: Pull out of hole with drill pipe to BHA at 689'. (9 hrs) Lay down BHA and Bit. Run GFL Indicator tool. Fluid level at 485'. (1 hrs) Held PJSM with Logging crew. Rig up a -line logging crew and equipment. (1 hrs) Run in hole with Acoustic, caliper, density, GammaRay logs to bottom at 9,914' Log open hole section from 9,914' to 7,860' 11-3/4" casing shoe. Pull out of hole with logs. Rig down logging equipment. BH Temperature static at 149 deg. (7.5 hrs) Held PJSM with Casing Crew. Rig up casing handling equipment. Run GFL Indicator toll. Fluid level at 525' (1.5 hrs) Make up 8-5/8" float shoe and float collar on joint number 1. Run in the hole with 8-5/8" 40 ppf L-80 Buttress casing to 600'. (4 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 41 Filtrate: 9.8 Surveys: None Daily Costs ($): 174,836 Well Costs ($): 10,031,890 Drilling Days: 98 Completion Days: 0 Workover Days: 22 -Nov -09 Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Prepare to fish 8-5/8" casing. Cut and slip drilling line. Operation Summary: Run in the hole with 8-5/8"40 ppf Buttress casing to 2,300' . Make up Chancellor 11-3/4" X 8-5/8" liner Hanger. Run hanger into the hole with one stand of drill pipe. Loss rate at 45-75 bph while running casing. (5 hrs) Circulate and condition mud. Build surface volume and mix drilling fluid. (2 hrs) Run in the hole with 8-5/8" casing on 5" drill pipe to 3,097'. String taking weight. Work pipe in attempt to pass thru 16" x 11-3/4" liner hanger top. Make several attempts no go. Rotate drill string to the left and slack off OK. (2 hrs) Run casing into hole on 5" drill pipe. String hung up at 3,354'. Unable to go down. Work string up and observed 5K overpull when string suddenly jumped and lost 40K string weight. (1 hrs) Pull 9 stands of drill pipe with 8-5/8" casing and rack back same. (1 hrs) Rig up casing crew with 8-5/8" handling tools to pull casing. (1 hrs) Pull out of hole 8-5/8" casing. Lay down 42 joints, recovered 1,259'. Casing pin end looks OK. Left 35 joints in the hole. (1,042'). Rig down casing handling tools. (5 hrs) Run in the hole with fluid level indicator tool. Top of fluid level at 480' below RT. (0.5 hrs) Pick up BOP test joint. Make up test plug with new test seals.Set in test spool. (0.5 hrs) Hold PJSM with BJ Services Pumping crew. Test 16-3/4" BOP stack. Pressure test 16-3/4" BOPE 250 psi low, 3,000 psi hi. Pressure test annular 250/2,500 psi. Pressure test pipe rams, choke mainifold, inside choke and kill line, and outside choke and kill line. Pull test joint. Close and test blind rams. Perform Acumulator test, total recovery time 158 sec. Chuck Scheve, AOGCC waived witness of test. (6 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 46 Filtrate: 9.8 Surveys: None Daily Costs ($): 146,536 Well Costs ($): 10,178,420 Drilling Days: 99 Completion Days: 0 Workover Days: 0 23 -Nov -09 I Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Lay down 8-5/8" casing. Operation Summary: Blow down choke lines and manifold. Blow down BJ Services pump truck.Line up choke manifold for drilling. (2 hrs) Printari- 19•!18 15-nct-1n Paqe: 41 of 98 NoWell Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: 0-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Slip and cut drilling line. Inspect break linkage, OK. Service top drive and rig. (2.5 hrs) Perform maintenance and houskeeping on rig while waiting for fishing tools. (4 hrs) Fishing tools arrived location. Move drill pipe around in derrick to pick up jars. Make up spear to fish 8-5/8" casing. (2.5 hrs) Run in the hole with spear to fish 8-5/8" casing. Tag top of fish at 2,355' Work spear into casing string. Pick up drill string to engage fish. Latch up with 8-5/8" casing. (4.5 hrs) Pull out of hole with 8-5/8" casing on drill pipe from 2,355' to surface. Break down fishing tool string from top of casing. (5.5 hrs) Rig up casing handling tools. Pull casing from hole. Lay down 25 joints 8-5/8" casing. Casing in good condition. (3 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 46 Filtrate: 9.8 Surveys: None Daily Costs ($): 121,432 Well Costs ($): 10,299,850 Drilling Days: 100 Completion Days: 0 Workover Days: 0 24 -Nov -09 Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Rigging up GBR Csg equipment Operation Summary: Complete laying down 8 5/8", 40#, L-80 Liner. Lay down Shoe track (Float collar & Float shoe) assembly in one piece (1 hrs) Rig down casing crew and equipment. Lay down same. (1 hrs) Rig up Rig floor to run a cleanout BHA in the hole to T.D. (1 hrs) Pick up 10 5/8", HCC, Bit #8 RR. MX206DX Ser# 5166920 w/ 3 X 20 jets. . Pick up BHA: (3) -8" D.C's, XO, (9) -6 1/2" D.C's & XO to 378' md. (1 hrs) Makeup BHA to 464' md. (2 hrs) RIH with cleanout BHA on 5" DP. RIH to 3,958' md. Fill pipe. Circulate. Blow down Top Drive. (2 hrs) RIH to 4,995' md. Fill pipe. Circulate. Blow down Top Drive. (1 hrs) RIH to 7,921' md. Fill pipe. Circulate. Blow down Top Drive. (2 hrs) RIH to 9,913' and -Tag fill (1'). Circulate & build Hi Vis Sweep. (2 hrs) Pump Hi Viscosity Sweep surface to surface. 11,000 stks. Hole clean & in good shape. Building pit volume. Blow down Top Drive. (3 hrs) POH with cleanout BHA on 5" DP. POH f/ 9,914' to 6,553' md. (2 hrs) Continue to POH w/ cleanout BHA on 5" DP. POH f/ 6,553' to 664' md. (3 hrs) POH, set back BHA. Stand back 6-1/2" & 8" D.C's. (2.5 hrs) Rig up GBR Csg crew & equipment. (0.5 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 45 Filtrate: 9.8 Surveys: None Daily Costs ($): 27,060 Well Costs ($): 10,326,910 Drilling Days: 101 Completion Days: 0 Workover Days: 0 25 -Nov -09 Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Running in hole with 8-5/8" L-80 liner on 5" DP. Operation Summary: Service Rig, Top drive & Draw works. PJSM. Rig Up Csg crew to run 8-5/8", L-80, 40#, Buttress Liner. (1 hrs) Pick up Shoe track: Float shoe, 1 -Jt liner, Float collar, 1 -Jt liner. (1 hrs) Pick up & run 8-5/8" liner. Make up torque @ 9,000 ft/lbs. Utilize Arctic grade Copper Coat thread Printed- 12 -ng 1.5-0&-10 Pace - 42 of 98 u` x Well Summary Report knek Electric Association, Inc, N Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough compound. Fill pipe every 5 Jts. (5 hrs) Build mud volume back up to 600+ bbls. (1.5 hrs) Repair leak on Top Drive hydraulic line. (1.5 hrs) Continue to run 8-5/8" Liner in the hole to 2,230' md. Make up "Chancellor Oil Tools" Liner hanger. Rig Down Csg handling equipment. Clear Rig floor. (2 hrs) RIH with 8-5/8" L-80 Liner on 5" DP from 2,342' to 4,793' md. Running speed 90 - 120 seconds per Std. Fill pipe every 5 Jts. (6 hrs) Continue to RIH with 8-5/8" L-80 Liner on 5" DP from 4,793' to 7,600' md. Hole taking 25 bph while running in the hole. Running speed 90 - 120 seconds per Std. Fill pipe every 5 Jts. Establish parameters @ Csg shoe. PUW 225k, SOW 210k. (5 hrs) Circulate & condition mud. Hole took 75 bbls to fill. Losing 30 bph while circulating. Build mud volume back up to 600+ bbls. (1 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 47 Filtrate: 9.9 Surveys: None Daily Costs ($): 44,271 Well Costs ($): 10,371,190 Drilling Days: 102 Completion Days: 0 Workover Days: 0 26 -Nov -09 I Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Nippling down the BOP stack. Operation Summary: Build mud volume. Losses while running in the hole @ 25 - 35 bph. (2 hrs) Load drill pipe Wiper Dart in cement head. (1 hrs) Continue to RIH with 8-5/8", L-80 Liner on 5" DP from 7,600' to TD @ 9,914' md. Hole taking 25 bph while running in the hole. Running speed 90 - 120 seconds per Std. Fill pipe every 5 As. Establish parameters on bottom . PUW 260k, SOW 245k. (2 hrs) Set Hanger with Liner shoe @ 9,912' md, Float collar @ 9,879' md, DPB @ 7,675' md. Hanger @ 7,653' md. (1 hrs) PJSM with cementers and all personnel on location. Rig up cementers. Test lines to 2,500 psi. (0.5 hrs) Cement 8-5/8" liner in place. Pump: 18 bbls of Mud Clean I, 14 bls of 12.8 ppg lead Cmt. 1�21s of 15.5 ppg tail Cmt. (2 hrs) Displace Cmt with 8.65 ppg LSND Drlg mud. Latch up observed @ 1,108 stks. Bumped plug @ 2,167 stks. FCP pre bump was 52 spm / 1,100 psi. pressured up to 1,600 psi and held for 5 minutes. Total mud lost during displacement was 94 bbls. Floats held. (0.5 hrs) POH standing back 5" DP in derrick. Did not fill hole on the way out. LD Liner hanger setting Tool. (7 hrs) LD Mouse hole. Remove front Wind walls & Headache rack. RU to LD V -door. LD V -door. (2 hrs) Re -hang Wind walls tarp for laying down Beaver slide. LD Pipe Wrangler. (1 hrs) Load out & move Pipe Wrangler. (0.5 hrs) Nipple down BOP stack. Clear & clean cellar. (4.5 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 43 Filtrate: 9.9 Surveys: None Daily Costs ($): 140,696 Well Costs ($): 10,511,880 Drilling Days: 103 Completion Days: 0 Workover Days: 0 27 -Nov -09 I Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Stress relieve well head. Operation Summary: Nipple down BOP stack. Remove studs from stack flanges. Clean & clear snow from Rig & location. Printed: 12:06 15 -Oct -10 R/MBase rage: 4s or as r Wel( Summary Report .knek Electric Association, ,inc. (N Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 178 Rng: 44W County: Bristol Bay Borough (2 hrs) Nipple down & remove Pitcher nipple. LD Pitcher nipple. (1 hrs) Nipple down & remove Annular preventer. LD Annular preventer. (1 hrs) Nipple down & remove Pipe rams & Blind rams. LD Pipe rams & Blind rams. (1 hrs) Nipple down & remove Mud cross. LD Mud cross. (1 hrs) Clear & clean cellar. Dryout cellar for Welders to remove Well head. (1 hrs) Work w/ Welders to cut off Well head. Dress off 16" stub. Pre -fab 16" Riser. (1 hrs) Dress 16" stub for new Well head. Pre -fab 16" Riser. Remove Remove HCR & Choke valves from Mud cross. (1 hrs) Land Well head. Pre -fab Riser. Change out Liners on Mud pump # 1 & 2. Change Liners from 6-1/2" to 6" Liners. W (1 hrs) Pre -heat Well head to 375 degrees F. Pre -fab Riser. Hang tarp in front of Rig. Continue to change out Liners. Install Shear rams in Double gate ram bodies. Install Choke valves on Mud cross. Weld on Well head four 6:30 to 10: PM. (6 hrs) Install insulation for stress relief. Stress relieve Well head. Continue to change Liners in Mud pumps. (2 hrs) Continue to stress relieve Well head. Continue to change out Liners in Mud pumps. (6 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 35 Filtrate: 14 Surveys: None Daily Costs ($): 21,107 Well Costs ($): 10,532,990 Drilling Days: 104 Completion Days: 0 Workover Days: 0 28 -Nov -09 Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Nippling up BOP stack and Rotating head. Operation Summary: Complete & test Stress relief on 16-3/4" 3M CHF Well head. Test to 680 psi for 20 minutes - Pass. Rig down Well head crew. Land 16-3/4" 3M X 13-5/8" 5M Test spool. (1 hrs) Pick up and land 13-5/8" 5M X 13-5/8" 10M Double Stud Adaptor. (1 hrs) Pick up 13-5/8" 10M Single Gate Pipe Rams. (1 hrs) Land Pipe Rams. (1 hrs) Pick up & land 13-5/8" 10M Mud Cross. (1 hrs) Replace valves on Mud Cross. (1 hrs) Remove 10M psi Choke & HCR valves from Mud Cross. Pick up & land 13-5/8" 10M Double Gate Rams. Pick up and land 13-5/8" 10M Hydil. (4 hrs) Make up studs on BOP stack. Install Heads in #1 & #2 Mud pumps. Install Wing valves on Well head. Install Kill side 10M valves. AOGCC Lou Grimaldi called and will witness BOP test, he will arrive ASAP. Lou requested we call him mid-morning and re -discuss (8 hrs) Nipple up Rotating Head. Hammer up studs on BOP stack. (6 hrs) Comments: 48 hr notice given to Bob Noble @ AOGCC of upcoming BOP test. Contact @ 9:45 AM 11/28/2009. Lou Grimaldi AOGCC called back @ 8:45 PM and will witness test. Lou will arrive ASAP. Mud Data: MW: 8.65 Viscosity: 43 Filtrate: 14 Surveys: None Daily Costs ($): 28,972 Well Costs ($): 10,561,960 Drilling Days: 105 Completion Days: 0 Workover Days: 0 29 -Nov -09 I Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Pre -testing BOP's. Trouble shooting Blind / Shear Ram gate assemblies. Operation Summary: Hammer up BOP stack. Install Kill line. Install valve handles. Check all Studs. (4 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: 1,4 or ao 30 -Nov -08 Well Summary Report Well ID: G-1 ,knek Electric Association, Inc. Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Pick up Pitcher nipple & test fit. Lay down Pitcher nipple & have welder trim to fit. Pick up and land Pitcher nipple. Hook up Accumulator lines. (2 hrs) Hammer up all Choke side valves. Install DSA for Choke line. Hammer up lines. Install Accumulator lines on Choke side. Set Cat walk in position. Rig up to set in V -Door. (5 hrs) Set in V -Door. Rig down 4 -was. Rig up wind walls by V -Door. (1 hrs) Work with welder. Set in Flow line. (1 hrs) Install Turn buckles on BOP stack. Tie in Flow line. Pick up Test Jt. Make up Test plug. (4 hrs) Rig up BJ pumping services. Prepare to pretest BOP's. (1 hrs) Trouble shoot Blind / Shear Rams. Housekeeping. (6 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 37 Filtrate: 14 Surveys: None Daily Costs ($): 214,033 Well Costs ($): 10,775,990 Drilling Days: 106 Completion Days: 0 Workover Days: Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Testing BOPE. AOGCC Rep Chuck Scheve on location to witness testing operations. Operation Summary: Trouble shoot shear blind rams. Contact Cameron Iron Works to discuss options. Operator piston not retracting properly. Make adjustments to operator piston. Working properly. (9 hrs) Change out IBOP on Top Drive. Valve washed out. (9 hrs) Hold PJSM on testing BOPE with rig crew and AOGCC Rep Chuck Scheve. Presure test lines to 5,500 psi, OK. Test upper pipe rams and choke line valves 250/4,500 psi, OK. Kill line valves failed pressure test. Continue testing choke manifold valves, OK. (6 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 35 Filtrate: 14 Surveys: None Daily Costs ($): 59,161 Well Costs ($): 10,835,150 Drilling Days: 107 Completion Days: 0 Workover Days: 01 -Dec -08 I Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Preparing to remove and rig down BOPE to resolve wellhead issues. Operation Summary: Complete BOPE testing. AOCGG Rep Chuck Scheve witnessed Testing. Had to retest annular and kill line valves several times to get them to hold test pressure. Tested annular 250/3,500 psi. Tested choke line valves, upper and lower 5" pipe rams, choke mainfold, and blind rams 250/4,500 psi. Completed accumulator and gas monitors testing, OK. (6 hrs) Pull and lay down test joint and test plug. (1 hrs) Blow down choke line, manifold, and top drive with air. (1 hrs) Pick up and set in mouse hole. Service rig and top drive. (1 hrs) Run in hole with GFLIT and observed fluid level in well at 370'. Pull and lay down tool. (1 hrs) Make up 10-5/8" bit and 8" stand of drill collars. Slack off thru BOP stack and wellhead. Bit unable to pass thru 13-5/8" 10k x 5k wellhead. (1 hrs) Call TNG to discuss wellhead configuration. Discovered bit guide and x-packoff had been left in place in wellhead. Bit will not pass thru wellhead. (1 hrs) Break off and lay down 10-5/8" bit, Lay down 8", 6-1/2" drill collars, and 7-1/4" drilling jars. (5.5 hrs) Change oil in top drive motors. Service rig and top drive. (1 hrs) Pick up 4" drill string handling tools. Change out elevators to 4". (1.5 hrs) Pick up and make up 4" BHA with 7-1/2" Bit. Run in hole with BHA. Unable to pass 7-1/2" bit thru wellhead. Pull back to surface. Contact TNG to send Wellhead Tech to Alaska. Prepare to rig down BOPE to resolve wellhead issues. (4 hrs) Printed. 12:06 15 -Oct -10 Kinmbase rdyr. vu u1 vo y ° Well Summary Report .knek Electric Association, Inc, N Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Comments: Mud Data: MW: 8.65 Viscosity: 36 Filtrate: 14.5 Surveys: None Daily Costs ($): 67,273 Well Costs ($): 10,902,430 Drilling Days: 108 Completion Days: 0 Workover Days: 0 02 -Dec -09 Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Waiting on TNG Service Tech to remove packoff and bit guide from wellhead. Perform general housekeeping duties. Operation Summary: Remove bolts from wellhead. Nipple down choke and kill lines. Remove bell nipple and RCD head. Remove Kill and choke valves from drilling mud cross. Rig up 4 -way slings on BOP stack for hoisting. Service rig and top drive. Change hydraulic fluid and filter in top drive. (7 hrs) Waiting on TNG Service Tech to remove packoff and bit guide from inside wellhead. BOP stack will be hoisted upon arrival of TNG employees. Perform general housekeeping duties. Clean dog house and subbase. Replace spring in drawworks break. Clean drawworks motors. Change out packing on rod oilers. Hang V -door. Make adjustment on tong hang line. Clean,organize, and inventory pump parts house. (17 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 36 Filtrate: 14.5 Surveys: None Daily Costs ($): 77,034 Well Costs ($): 10,979,460 Drilling Days: 109 Completion Days: 0 Workover Days: 0 03 -Dec -09 Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in the hole picking up 4" drill pipe and BHA # 17. Operation Summary: Waiting on TNG Service Tech to remove packoff and bit guide from inside wellhead. BOP stack will be hoisted upon arrival of TNG employees. Perform general housekeeping duties. Insulate change house. Install fresh water pump inside insulate building. (4 hrs) Held PJSM with TNG Crew on wellhead service. Hoist BOP stack from welhead with Blocks. (1 hrs) TNG Wellhead Tech removed packoff bushing and bit guide from wellhead. Set BOP stack back onto wellhead. (1 hrs) Nipple up kill line and choke line valves. Install RCD and flow line. Hook up koomey lines. (4 hrs) Set BOP test plug. Hold PJSM with crew on BOP testing. Rig up BJ Services lines. Pressure test lines to 5,500 psi. OK (1 hrs) Pressure test BOP stack 250/4,500 psi. Slight leak observed at door seal on blind rams. Shut down to repair leak. (1 hrs) Open doors on blind rams. Service sealing area on bonnet seals. Close doors on blind rams. (1.5 hrs) Retest BOP stack 250/4,500 psi. OK (0.5 hrs) Blown down test lines and choke manifold. Pull test plug and lay down same. (1 hrs) Complete rig up flow line, fill up line and bleeder valve. (1 hrs) Pick up and make up BHA # 17. Make up 7.5" Bit, Mud Motor, Stabilizer, non -mag drill collars, steel drill collars, drilling jars, and HWDP. Run in the hole to 1,150'. Make up top drive and break circulation. (8 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 36 Filtrate: 14.4 Surveys: None Daily Costs ($): 33,231 Well Costs ($): 11,012,690 Drilling Days: 110 Completion Days: 0 Workover Days: 0 Printed: 12:06 15 -Oct -10 Kmmtiase rayv. w0 v1 U0 is Well Summary Report knek Electric Association, Inc. ' Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Ring: 44W County: Bristol Bay Borough 04 -Dec -09 Current Depth (ft): 9,914 Hole Drilled (ft): 0 Ave ROP: Current Ops: Shut down tripping operations while waiting for high winds to subside. 05 -Dec -09 06 -Dec -09 Operation Summary: Run in the hole with BHA #16. Pick up 4" drill pipe from pipe rack. Run in the hole to 2,200'. Make up top drive and fill the hole. Took 60 bbls to fill the hole. (3 hrs) Run in the hole from 2,200' to 8-5/8" liner lap at 7,668'. Run drill pipe out of derrick. Make up top drive. Break circulation. (5.5 hrs) Wash & Ream thru liner to 7,675'. Tag up on packoff bushing. Drill thru bushing to 7,776'. (1.5 hrs) Circulate and condition mud. Work drill string. Circulate until shakers clean up and mud weight in and out is 8.6 ppg. (3 hrs) Held PJSM with BJ Pump and rig crew on casing testing. Rig up and pressure test lines to 2,000 psi. Pressure up to test 8-5/8" x 11-3/4" liner lap. Slowly pump at .5 to .75 BPM to 780 psi. Continue to ramp up pump rate to 3 bpm at 780 psi, pumping away. Observed pressure bleed back to 100 psi in 10 min. Liner lap failed pressure test. (2 hrs) Rig down pressure test lines and equipment. Blow down choke manifold and top drive. Shut down due to high winds. (1 hrs) Shut down tripping operations due to high winds. Work on mud pump #1. Replace liner seal. Perform general housekeeping duties while waiting on winds to subside. (8 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 38 Filtrate: 16 Surveys: None Daily Costs ($): 32,643 Well Costs ($): Drilling Days: 111 Completion Days: Current Depth (ft): 9,914 Hole Drilled (ft): Current Ops: Preparing to set 8-5/8" bridge plug. 11,045,340 0 Workover Days: 0 0 Ave ROP: Operation Summary: Shut down tripping operations due to high winds. Perform general housekeeping duties. (5 hrs) Winds have subsided. Continue tripping drill pipe into the hole, tag up on cement at 9,840' md. (2 hrs) Run MRT survey tool to 9,713'. MRT Reading = 210 deg (1 hrs) Pull out of hole from 9,840' to 1,218'. At BHA (7 hrs) Stand back BHA, break off bit and lay down mudmotor. Service rig and top drive. (2 hrs) Held PJSM on running Bridge Plug. Make up 8-5/8" Baker Bridge Plug on 5" drill pipe. Run in the hole to 7,755'. (7 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 37 Filtrate: 16 Surveys: None Daily Costs ($): 29,236 Well Costs ($) Drilling Days: 112 Completion Days: Current Depth (ft): 9,914 Hole Drilled (ft): Current Ops: Preparing to test BOPE, WOC. 11,074,570 0 Workover Days: 0 0 Ave ROP: Operation Summary: Run in hole with 8-5/8" Bridge Plug to 7,755', Drop setting ball. Make up top drive and pump ball down to seat at 6 bpm 350 psi. Pressure up to 1,780 psi and set bridge plug. Pick up 20k over string to shear off setting tool. Slack back down to verify tool is set, OK. (1 hrs) Pull out of hole with Baker setting tool to surface. (5 hrs) Break out and lay down Baker Bridge Plug running tool. (1 hrs) Run in hole with open ended drill pipe to 7,755'. Tag top of 8-5/8" Bridge Plug. Rig up BJ cementing Printed: 12:06 15 -Oct -10 R/MBase rage: wr OT &0 0 • Y Well Summary Report .knek Electric Association,Inc.. Well ID: G-1 Well Name: G-1 N 9 Field: King Salmon Sect: 14 Town: 178 Rng: 44W County: Bristol Bay Borough 07 -Dec -09 and circulating lines. (4 hrs) Break circulation and establish injectivity rate at 6 bpm 780 psi. (0.5 hrs) Hold PJSM with BJ Cementers and rig crew. Pressure test lines to 2,000 psi. Mix and pump 15 bbls of 13.5 ppg cement. (0.5 hrs) Displace cement to balance point with mud pumps. CIP at 18;30 hrs. (0.5 hrs) Pull 10 stands drill pipe. Make up top drive, shut in IBOP, Pipe Rams, and open kill line valves. Pressure up to squeeze cement. Initial shut in pressure 100 pis, Final squeeze pressure at 500 psi with 7 bbls of cement squeezed into liner lap. Final pressured observed on squeeze 433 psi. (1.5 hrs) Pull out of hole from 6,962' to surface. (2.5 hrs) Service rig and top drive. (0.5 hrs) Slip and cut 100' drilling line. Remove break guards and inspect pads, linkage, and bolts. Reinstall guards. Make adjustments on drawworks breaks. (3.5 hrs) Pick up test joint and BOP test plug, Inspect same. Perform general housekeeping. WOC. (3.5 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 34 Filtrate: 12 Surveys: None Daily Costs ($): -2,683 Well Costs ($) Drilling Days: 113 Completion Days: Current Depth (ft): 9,914 Hole Drilled (ft): Current Ops: Run in the hole with BHA # 16. 11,071,890 0 Workover Days: Operation Summary: Stand by waiting on cement from Liner lap squeeze job. Perform general house keeping duties. (2 hrs) Held PJSM on high pressure BOP testing with BJ Services and Rig crew. Pressure test lines to 5,500 psi, OK. (1 hrs) Pressure test BOPE. Test annular 250/3,500 psi3OK. Start testing choke manifold, upper 5" pipe rams, kill line and choke valves. Test pressure 250/4,500 psi. OK. Kill line valves failed pressure test. (4 hrs) Change out 2 ea, kill line valves from 10k to 5k with DSA. Retest Kill line valves 250/4,500 psi. OK. (5 hrs) Continue BOPE test. Lower pipe rams, choke manifold, and choke line 250/4,500 psi, OK. Test floor valves and IBOP to 250/4,500 psi, OK. Pull test joint. Attempt to test blind rams. Test plug leaking. Make up test joint pull test plug. Redress test plug. Set test plug. Pull test joint. Retest blind rams to 250/4,500 psi, OK. Perform gas monitor test, and accumulator.,OK. Jeff Jones, AOGCC, waived witnessing BOPE test. (9 hrs) Make up 7-1/2" bit and BHA # 16. Run in the hole with drill collars to 327'. (3 hrs) Comments: Mud Data: MW: 8.65 Viscosity: 37 Filtrate: 13 Surveys: None Daily Costs ($): 37,354 Well Costs ($): 11,109,240 Drilling Days: 114 Completion Days: 0 Workover Days: 08 -Dec -09 I Current Depth (ft): 9,934 Hole Drilled (ft): 20 Ave ROP: Current Ops: Circulate and condition mud in preparation for FIT. Operation Summary: Run in hole with BHA #16. Fill pipe at 2,671', 3,142' and 5,038'. Run in the hole to 7,610'. (8 hrs) Make up top drive. Break circulation. Wash and ream thru cement from 7,610' to 7,740'. (1 hrs) Circulate and condition mud. (2 hrs) Hold PJSM with BJ Services and rig crew. Rig up lines to test casing. Pressure test lines to 2,000 psi. Close pipe rams. Pressure test 11-3/4" x 8-5/8" liner lap to 1,000 psi. Hold test pressure for 10 min. OK. Bleed off pressure. Open pipe rams. (1 hrs) Drill 8-5/8" bridge plug clean out casing to top of float collar. Drill out 8-5/8" float collar and float shoe. Printed: 12:06 15 -Oct -10 R/MBase Page: 48 of 98 • • Printed: 12:06 15 -Oct -10 R/MBase rage: 49 or 98 Well Summary Report knek Electric Association, Inc. A Well {D: G-1 Well Name: G4 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Clean out to bottom at 9,914'. (7 hrs) Drill from 9,914 ftto 9,934' ft. Drill 7-1/2" open hole section. (2 hrs) Circulate and condition mud in preparation for FIT. No fluid losses. (3 hrs) Comments: Mud Data: MW: 8.4 Viscosity: 33 Filtrate: 25 Surveys: None Daily Costs ($): 42,349 Well Costs ($): 11,151,590 Drilling Days: 115 Completion Days: 0 Workover Days: 0 09 -Dec -09 Current Depth (ft): 10,250 Hole Drilled (ft): 316 Ave ROP: 10.0 Current Ops: Drill 7-1/2" Open hole section. Operation Summary: Circulate and condition mud in preparartion for FIT. (1 hrs) Held PJSM with BJ Services & Drilling Crew. Close pipe rams. Pressure test lines to 2,000 psi. Pressure up on formation with 1,000 psi. for FIT. Hold pressure for 10 min. Bleed back vol same as pump. MWE = 10.6 ppg. Open pipe rams. Rig down test lines. Blow down and freeze protect lines. (1 hrs) Install Weatherford RCD element. (1 hrs) Drill from 9,934 ft to 10,250 ft. Drill 7-1/2" open hole section. No fluid losses. (21 hrs) Comments: Mud Data: MW: 8.6 Viscosity: 42 Filtrate: 14.3 Surveys: None Daily Costs ($): 148,261 Well Costs ($): 11,299,850 Drilling Days: 116 Completion Days: 0 Workover Days: 0 10 -Dec -09 Current Depth (ft): 10,535 Hole Drilled (ft): 285 Ave ROP: 15.0 Current Ops: Drill 7-1/2" open hole section. No fluid losses. Operation Summary: Drill from 10,250 ft to 10,535 ft. Drill 7-1/2" open hole section, no fluid losses. Service top drive and rig. A one bbl spill of drilling mud occurred from the mud pits due to lack of attention to ongoing operations. (24 hrs) Comments: Mud Data: MW: 8.8 Viscosity: 46 Filtrate: 13.1 Surveys: None Daily Costs ($): 33,975 Well Costs ($): 11,333,830 Drilling Days: 117 Completion Days: 0 Workover Days: 0 11 -Dec -09 Current Depth (ft): 10,560 Hole Drilled (ft): 25 Ave ROP: 11.9 Current Ops: Drill 7-1/2" open hole section. No fluid losses. Operation Summary: Drill from 10,535 ft to 10,550 ft. Drill 7-1/2" Open hole section. No fluid losses. (1.5 hrs) Circulate and condition mud. Pump dry job. Drop survey instrument. Blow down top drive. (1 hrs) Pull out of hole to Bit. Pull RCD. Recover survey tool. Down hole temperature reading 285 deg. (9.5 hrs) Make up new 7-1/2" drill bit. Set RCD. Run in the hole to bottom at 10,550'. Fill pipe at 2,107', 4,561', 6,358', 7,767', 9,752', Make up top drive wash & ream from 10,505' to bottom at 10,550'. No fill on bottom. No fluid losses during trip. (9 hrs) Drill from 10,550 ft to 10,560 ft. Drill 7-1/2" open hole section. No fluid losses. (3 hrs) Comments: Printed: 12:06 15 -Oct -10 R/MBase rage: 49 or 98 • • ��, Well Summary Report knek Electric Association, Inc. NoN"`; R Well ID: G-1 Well Name:. G-1 Field: King Salmon Sect: 14 Town: 17S Ring: 44W County: Bristol Bay Borough Mud Data: MW: 8.8 Viscosity: 44 Filtrate: 13.4 Surveys: None Daily Costs ($): 51,143 Well Costs ($): 11,384,970 Drilling Days: 118 Completion Days: 0 Workover Days: 0 12 -Dee -09 Current Depth (ft): 10,830 Hole Drilled (ft): 270 Ave ROP: 5.6 Current Ops: Drill 7-1/2" open hole section. No fluid losses. Operation Summary: Drill from 10,560 ft to 10,830 ft. Drill 7-1/2" Open Hole section. Pump 80 bbl sweeps every other stand to clean hole. No fluid losses. Service rig and top drive. (24 hrs) Comments: Mud Data: MW: 8.8 Viscosity: 45 Filtrate: 14.3 Surveys: 9819ft - 3.9 deg Inc, 171.95 deg Az; 10465ft - 5.2 deg Inc, 170.95 deg Az; Daily Costs ($): 34,915 Well Costs ($): 11,419,890 Drilling Days: 119 Completion Days: 0 Workover Days: 0 13 -Dee -09 Current Depth (ft): 11,144 Hole Drilled (ft): 314 Ave ROP: 11.3 Current Ops: Drill 7-1/2" open hole. No fluid losses. Operation Summary: Drill from 10,830 ft to 11,144 ft. Drill 7-1/2" open hole section. Pump 80 bbl sweeps every other stand to clean hole. No fluid losses. During cuttings transport operations a super sack split open and discharged 1.5 cu yds of dry cuttings onto pad. Clean up into new cuttings sack and disposed of in storage pit. (24 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 42 Filtrate: 13.2 Surveys: None Daily Costs ($): 59,181 Well Costs ($): 11,479,070 Drilling Days: 120 Completion Days: 0 Workover Days: 0 14 -Dec -09 Current Depth (ft): 11,161 Hole Drilled (ft): 17 Ave ROP: 13.1 Current Ops: Weekly BOP test. Operation Summary: Drill from 11144 ft to 11161 ft. Drill 7-1/2" open hole section. Quit drilling due to hours on the bit. (1 hrs) Circulate and condition mud. Drop survey and temperature tool. Mix and pump dry job. (1 hrs) Pull out of hole. Observed tight hole at 11,161'. Make up top drive. Break circulation and back ream out of hole from 11,161' to 10,790'. Hole section cleaned up. Work pipe thru tight spots until clean. (3 hrs) Pull out of from 10,790' to 4,087'. (5 hrs) Trouble shoot top drive traction motors. Check phases on motors. Unable to resolve issue. Mechanic to contact NOV Top Drive Mechanic. Service Rig and top drive. (3 hrs) Continue trip out of hole from 4,087' to surface. Recover survey and temperature tool. Inaccurate reading as tool landed in Jars, not at bit. Change out bit and stabilizer. Check mud motor, OK. Blow down top drive and mud line. (5 hrs) Make up new bit with stabilizer. Run in hole with 4" drill collars to 600'. (1 hrs) Run in the hole from 600' to 2,190'. (4 hrs) Make up test plug and test joint to drill string. Set test plug in wellhead. Rig up and prepare for BOP test. (1 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 45 Filtrate: 13.2 Printed: 12:06 15 -Oct -10 RIM6ase rage: ou or yo 7ew-"'� I? Printed: 12:06 15 -Oct -10 R/MBase rage: 07 or ars Well Summary Report Electric Association, Inc. .knek Well (D: G-1 Well Name: G-1 Field: King Salmon Sect: 14 -fawn: 17S Rng: 44W County: Bristol Bay Borough Surveys: None Daily Costs ($): 214,671 Well Costs ($): 11,693,740 Drilling Days: 121 Completion Days: 0 Workover Days: 0 15 -Dec -09 Current Depth (ft): 11,205 Hole Drilled (ft): 44 Ave ROP: 17.0 Current Ops: Drill 7-1/2" open hole section. No fluid losses. Operation Summary: Hold PJSM with BJ Services and rig crew on BOP testing.Rig up testing lines. Pressure test lines to 5,500 psi, OK. Prepare to test 13-5/8" BOPE stack. (1 hrs) Line up valves in choke house skid. Shut Annular. Pressure test 250/3,500 psi, OK. Continue BOPE testing. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. Chuck Scheve (AOGCC)waived witnessing BOPE testing. (9 hrs) Pull 13-5/8" test plug, lay down test joint and plug. Blow down test lines. Rig down BJ Services test lines. (1 hrs) Make up top drive and break circualtion at 2,190'. Line up choke manifold to drill. Blow down top drive. (1 hrs) Run in the hole with BHA # 18 from 2,190' to 9,847'. Fill drill pipe at 5,033, and 9,847'. Set RCD. Service rig and top drive. (6 hrs) Run in the hole from 9,847' to 10,804'. Make up top drive. Break circulation. Wash & ream from 10,804 to 11,161' on bottom. (3 hrs) Drill from 11,161 ft to 11,205 ft. Drill 7-1/2" open hole section. No fluid losses. (3 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 38 Filtrate: 13.4 Surveys: None Daily Costs ($): 64,760 Well Costs ($): 11,758,500 Drilling Days: 122 Completion Days: 0 Workover Days: 0 16 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 13 Ave ROP: 14.7 Current Ops: Slip and Cut drilling line. Waiting on fishing tools. Operation Summary: Drill from 11,205 ft to 11,218 ft. Drill 7-1/2" open hole section. Observed hi- torque and penetration rate fall off to less than 1' an hour. (5.5 hrs) Circulate and condition mud, Drop survey and temperature tool. (1.5 hrs) Pull drill pipe to inspect BHA. Wash and ream thru tight hole from 11,218', 11,180', 10,950', 10,850, 10,800', 10,790', 10,650'. Pull on elevators to casing shoe at 9,914'. (2.5 hrs) Mix and pump dry job. (1 hrs) Contniue to pull drill pipe. At BHA, recover survey and temperature tool ( 210 deg) Stand back drill collars. Break off bit. All three cones missing off bit. (9.5 hrs) Clear rig floor of all handling tools. (1 hrs) Slip & Cut drlg line. (3 hrs) Comments: Mud Data: MW: 9 Viscosity: 47 Filtrate: 9.6 Surveys: None Daily Costs ($): 39,294 Well Costs ($): 11,797,790 Drilling Days: 123 Completion Days: 0 Workover Days: 0 17 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: 2.4 Current Ops: Run in the hole with reverse circulating junk basket to recover cones off drill bit. Printed: 12:06 15 -Oct -10 R/MBase rage: 07 or ars • • NWell Summary Report knek Electric Association, Inc Well ID: G-1 Wel NameG-1 Field: King Salmon Sect: 14 Town: 17S Ring: 44W County: Bristol Bay Borough Operation Summary: Slip & Cut Drilling Line. Inspect drum and brakes. Service rig and top drive. (3 hrs) Wait on fishing tools. Clean and organize rig floor. Change oil in mud pump # 2. Service blocks and crown section. Welder install rollers on break out lines on drawworks. De-ice rig floor. (7 hrs) Held PJSM with Baker Oil Tools and rig crew on making up fishing tools. Pick up fishing tools to rig floor from catwalk. (1 hrs) Make up 6-5/8" wash over shoe and reverse circulating junk basket. Run in the hole to 2,543'. (3.5 hrs) Thaw out frozen 4" valve and mud lines for mud pump #2. (2.5 hrs) Circulate and condition mud from 2,543'. (1.5 hrs) Run in the hole from 2,543' to 2,826'. Stop to work on Mud Pump #1. (0.5 hrs) Thaw out charge pump on #1 mud pump. (1 hrs) Run in hole with fishing assembly to recover cones off drill bit. RIH from 2,826' to 8,000'. (4 hrs) Comments: Mud Data: MW: 9 Viscosity: 48 Filtrate: 9.6 Surveys: None Daily Costs ($): 29,994 Well Costs ($): 11,827,790 Drilling Days: 124 Completion Days: 0 Workover Days: 0 18 -Dec -09 I Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Work on top drive, repair 4" valves on mud line. Operation Summary: Run in the hole with 6-5/8" Washover shoe and reverse circulating junk basket to 9,900' Stop to break circulation. (2 hrs) Attempt to break circulation, lines frozen. Defrost 4" mud line valve. Replace water line in drawworks. (2 hrs) Break circulation, CBU at 7 bpm 850 psi. Repair Pop Off Valve on Mud Pump #2. (2.5 hrs) Run in the hole from 9,900' to 10,541'. Tag up solid. Make up top drive. Break circulation. (1 hrs) Wash & ream thru open hole with numerous packoffs. Circulate at 7 bpm 1,650 psi. Work drill string from 10,541' to 10,774'. Unable to work drill string past this depth. Decision made to pull drill string to inspect BHA. (4 hrs) Pull out of hole with top drive. Back ream out of hole from 10,774' with tight hole spots to 9908'. Pump rate at 7 bpm 1,650 psi. (2 hrs) Mix and pump dry job. Blow down top drive and mud pump circulating system. (1.5 hrs) Pull out of hole from 9,908'. Change drill pipe elevators to 4" at 2,200'. Continue to pull drill pipe. At BHA. Washove shoe is in good shape. Reverse circulating basket full of formation rocks. (8.5 hrs) Break out and lay down Fishing BHA. Clear floor. Prepare to work on Top Drive. (0.5 hrs) Comments: Mud Data: MW: 9 Viscosity: 41 Filtrate: 8.6 Surveys: None Daily Costs ($): 90,245 Well Costs ($): 11,918,030 Drilling Days: 125 Completion Days: 0 Workover Days: 0 19 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations. Plan for sidetrack operations. Perform General Housekeeping Duties. Operation Summary: Suspend Drilling Operations. Plan sidetrack operations. Work on Top Drive issues with NOV Mechanic. Lay down fishing tools and directional tools off rig floor. Rebuild 2" and 4" valves on both mud pumps. Repair mixing valve on mud hopper. Contact BHI on sidetrack issues. (6 hrs) Continue to work on top drive issues with NOV Mechanic. Parts on order from Houston, TX. to repair Printed: 12:06 15 -Oct -10 R/MBase rage: 5z or va 36 "", ;, Well Summary Report .knek Electric Association, Inc, N' qrr Well ID: G-1 Well Name: G4 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough top drive. General housekeeping on the rig and location. Shut Blind rams to secure well. Change out drill pipe spinners on rig floor. Clean mud pump room. (12 hrs) Work on top drive issues with NOV Mechanic. Insulate rig fuel tank. General housekeeping. Clean mud pits and shakers. Service centrifuge and prepare for cold storage. Suspend Drilling Operations. Plan sidetrack operations. (6 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 30,346 Well Costs ($): 11,948,380 Drilling Days: 126 Completion Days: 0 Workover Days: 0 20 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend drilling operations. Prepare for sidetrack operations. Operation Summary: Suspend drilling operations. Prepare for sidetrack operations. Remove drilling fluid from #2 suction tank. Clean out tank of cuttings. (6 hrs) Suspend drilling operations. Prepare for sidetrack operations. Repair agitator in suction tank # 2. Repair lights in mud pits. Welder working on rig mats. Welding plate steel on rig mats. Prepare BHI mud motors for shipment back to Anch. Work on directional planning for sidetrack operations. (12 hrs) Suspend drilling operations. Prepare for sidetrack operations. Complete repairs on agitator in suction tank #2. Prepare BHI fishing tools for shipment back to Kenai. Fuel equipment. Perform general houskeeping duties. (6 hrs) Comments: Mud Data: None Surveys: 11 183f - 3.7 deg Inc, 60.95 deg Az; Daily Costs ($): 22,615 Well Costs ($): 11,970,990 Drilling Days: 127 Completion Days: 0 Workover Days: 0 21 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in hole with 5" drill pipe to set 8-5/8" Retrievamatic Strom Packer. Suspend drilling operations. Operation Summary: Suspend drilling operations. Perform general housekeeping duties. Welder installing plate steel on rig mats. (6 hrs) Nov Mechanic working on Top Drive. Installed new power cables on traction motors. Install new analog cards for VDC. Change parameters in the inverter motor operation.Power up top drive. Function test OK. Brake pads need to be replace, will only hold 15,000 ft lbs of torque. Should be capable of 35,000 ft lbs of torque. Completed Top Drive Repairs. (12.5 hrs) Make up 8-5/8" Baker Retrievamatic Storm Packer. Run 4-3/4" drill collars below packer. Run packer in the hole on 5" drill pipe to 7,560' md. (5.5 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 63,078 Well Costs ($): 12,034,070 Drilling Days: 128 Completion Days: 0 Workover Days: 0 22 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend operations. Well secure. Operation Summary: Run in hole with 8-5/8" Retrievamatic Storm Packer to 9,315' md. (4 hrs) Set 8-5/8" Retrievamatic Storm Packer at 9,315' md. Close pipe rams. Pressure test packer to 500 psi, Printed: 12:06 15 -Oct -10 R/MBase rage: 5.3 or .96 Printed: 12:06 15 -Oct -10 rumbase rays. a, a, w Of uJ �— Well Summary Report .knek Electric Association, Inc, Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough OK. Bled off test pressure. (1 hrs) Break off top drive. Make up safety valve in top of drill string. Blow down top drive and all surface lines. Secure well operations. (1 hrs) Suspend well operations. Secure well. Make notifications to DNR of suspended operations. (18 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 45,894 Well Costs ($): 12,079,960 Drilling Days: 129 Completion Days: 0 Workover Days: 0 23 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 13,497 Well Costs ($): 12,093,460 Drilling Days: 130 Completion Days: 0 Workover Days: 0 24 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 17,968 Well Costs ($): 12,111,430 Drilling Days: 131 Completion Days: 0 Workover Days: 0 25 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 11,371 Well Costs ($): 12,122,800 Drilling Days: 132 Completion Days: 0 Workover Days: 0 26 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Printed: 12:06 15 -Oct -10 rumbase rays. a, a, w Of uJ �— Printed: 12:06 15 -Oct -10 RIMBase reqm ao o1 yo Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 ' Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Mud Data: None Surveys: None Daily Costs ($): 10,131 Well Costs ($): 12,132,930 Drilling Days: 133 Completion Days: 0 Workover Days: 0 27 -Dee -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 15,152 Well Costs ($): 12,148,080 Drilling Days: 134 Completion Days: 0 Workover Days: 0 28 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 49,041 Well Costs ($): 12,197,120 Drilling Days: 135 Completion Days: 0 Workover Days: 0 29 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 145,116 Well Costs ($): 12,342,240 Drilling Days: 136 Completion Days: 0 Workover Days: 0 30 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 19,521 Well Costs ($): 12,361,760 Drilling Days: 137 Completion Days: 0 Workover Days: 0 Printed: 12:06 15 -Oct -10 RIMBase reqm ao o1 yo r • N Printed: 12:06 15 -Oct -10 R/MBase rage: 56 or 90 Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 31 -Dec -09 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,256 Well Costs ($): 12,370,020 Drilling Days: 138 Completion Days: 0 Workover Days: 0 01 -Jan -10 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,256 Well Costs ($): 12,378,270 Drilling Days: 139 Completion Days: 0 Workover Days: 0 02 -Jan -10 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,256 Well Costs ($): 12,386,530 Drilling Days: 140 Completion Days: 0 Workover Days: 0 03 -Jan -10 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 26,612 Well Costs ($): 12,413,140 Drilling Days: 141 Completion Days: 0 Workover Days: 0 04 -Jan -10 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations Operation Summary: Suspend Drilling Operations (24 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: 56 or 90 0 • Printed: 12:06 15 -Oct -10 R/MBase rage: of or au Well Summary Report knek Electric Association, Inc. Well ID: G-1 Wel( Name: G-1 !` Field: King Salmon Sect: 14 Town: 178 Rng: 44W County: Bristol Bay Borough Comments: Mud Data: None Surveys: None Daily Costs ($): 25,566 Well Costs ($): 12,438,710 Drilling Days: 142 Completion Days: 0 Workover Days: 0 05 -Jan -10 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. Drilling Crew arrived 18:00 hrs. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 26,482 Well Costs ($): 12,465,190 Drilling Days: 143 Completion Days: 0 Workover Days: 0 06 -Jan -10 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Preparing to retest BOPE to 4,500 psi. Operation Summary: Held PJSM on tripping drill pipe. (0.5 hrs) Unseat 8-5/8" Storm packer. Screw into top drive. Pull packer free. Attempt to unscrew from the top drive. Saver sub and drill pipe connection over torqued. Make several attempts to disconnect from top drive. Unbolt saver sub from top drive. Lay down one joint drill pipe. (4.5 hrs) Pull 8-5/8" storm packer out of hole from 9,315' to surface. Packer pulled off from running tool while attempting to pull thru BOP stack. Lost packer downhole. (8 hrs) Break off running tool. Make up overshot. Run in the hole 100'. No packer. Appears packer has fallen back downhole. (1 hrs) Make up saver suband clamp back onto top drive. Take torque readings from top drive. (2 hrs) Pick up 3 stands of drill pipe. Run below test plug. Set 13-5/8" test plug in wellhead. (1 hrs) Held PJSM on BOPE testing. Rig up BJ Services testing lines. Presure test lines to 3,500 psi. (2 hrs) Line up valves in choke house skid. Shut Annular. Pressure test 250/3,500 psi, OK. Continue BOPE testing. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/3,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/3,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/3,500 psi. Function tests gas detectors and accumulator system. Jim Regg (AOGCC)waived witnessing BOPE testing. (5 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 69 Filtrate: 8.6 Surveys: None Daily Costs ($): 26,942 Well Costs ($): 12,492,130 Drilling Days: 144 Completion Days: 0 Workover Days: 0 07 -Jan -10 Current Depth (ft): 11,218 Hole Drilled (ft): 0 Ave ROP: Current Ops: Pull drill pipe from hole with Baker 8-5/8" storm packer. Operation Summary: Continue testing BOPE. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. Jim Regg (AOGCC)waived witnessing BOPE testing. (7 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: of or au Well Summary Report knek Electric Association, Inc. Well ID: G-1 Wel[ Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Pull 13-5/8" test plug. Stand back 3 stds of drill pipe. Blow down all lines and choke manifold. (1 hrs) Make up Baker Overshot BHA to recover 8-5/8" Storm Packer. (2 hrs) Run drill pipe in the hole to 2,543'. Make up top drive. Break circulation. (3 hrs) Circulate and condition mud. Weight up mud system to 9.2 ppg. (3.5 hrs) Run in the hole with Baker Overshot BHA to 9,792', Tag up on top of Baker 8-5/8" packer. Make up top drive. Break Circulation. (6.5 hrs) Wash & Rotate down over top of 8-5/8" packer to 9,798'. Pick up on drill string and observed 30k overpull. Pull drill pipe from hole. (1 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 45 Filtrate: 8.9 Surveys: None Daily Costs ($): 18,165 Well Costs ($): 12,510,300 Drilling Days: 145 Completion Days: 0 Workover Days: 0 08 -Jan -10 Current Depth (ft): 9,872 Hole Drilled (ft): 0 Ave ROP: Current Ops: Running in the hole with 8-5/8" Baker Bridge Plug. Operation Summary: Pull out of hole slow with 8-5/8" Baker Packer. Lost packer off drill string 9,059'. (1 hrs) Run in the hole, latch onto fish at 9,841'. PUW 255k. 30k to 40k overpull. Verify latch up on fish. (1 hrs) Pull out of hole to 3,304' Continue to monitor overpull to verify fish is still latched on. (7 hrs) Repair cellar pump. Blow down top drive. (1 hrs) Pull out of hole to fish. Lay down Baker 8-5/8" Storm Packer. Slips and rubbers missing from packer body. (6 hrs) Break out and lay down Baker Fishing assembly. Lay 3 jts of 4-7/8" drill collars. Bad pin and plugged with formation. (2 hrs) Clear rig floor and lay down handling tools for fishing job. (1 hrs) Service rig and top drive. Repair drill pipe spinner. Held PJSM on running 8-5/8" Bridge Plug. (1 hrs) Make up 8-5/8" Baker Bridge Plug. Run in hole with drill pipe from derrick. Strap in the hole to 2,550' (4 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 70 Filtrate: 9 Surveys: None Daily Costs ($): 41,545 Well Costs ($): 12,551,840 Drilling Days: 146 Completion Days: 0 Workover Days: 0 09 -Jan -10 Current Depth (ft): 9,872 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in the hole with Baker Whipstock Assembly to sidetrack well. Operation Summary: Run in the hole with 8-5/8" Bridge Plug for sidetrack operations to 9,895'MD. (6.5 hrs) Drop setting ball down drillpipe. Circulate setting ball into place. Pressure up to 3,200 psi to set 8-5/8" Bridge plug. Setting depth at 9,895'md. Unable to shear setting tool. Bled off pressure. Slack off on drill string and set 20k down weight to verify bridge plug set, OK. This operation abandons lower hole section and prepares well for sidetrack operations. (0.5 hrs) Blown down top drive and service rig. (1 hrs) Pull out of the hole from 9,895'md. Break off and lay down Baker Running tool. (7 hrs) Service rig and top drive. (0.5 hrs) Held PJSM with rig crew on making up Baker Whipstock Milling Assembly. (0.5 hrs) Make up BHA, Bottom set anchor, Whipstock slide, Window mill, 2- Watermelon mills, 1- 4" HWDP, Bumper sub, MWD collar, NM filter sub, 4-7/8" drill collars, 4" HWDP, Run in the hole to 1,676'md. (5 Printed: 12:06 15 -Oct -10 Himbase rdye: 00 u1 V0 rlsd 0 Well Summary Report knek Electric Association, Inc, Well lD: G-1 Well Name: G-1 ..-' Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough hrs) Make up top drive. Break circulation, Pump at 5 bpm 750 psi to check MWD tool, OK (1 hrs) Run in the hole with Baker Whipstock Assembly from 1,676'md to 2,500' with 5" drill pipe. (2 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 47 Filtrate: 9.4 Surveys: None Daily Costs ($): 22,738 Well Costs ($): 12,574,580 Drilling Days: 147 Completion Days: 0 Workover Days: 0 10-Jan40 Current Depth (ft): 9,875 Hole Drilled (ft): 3 Ave ROP: Current Ops: Milling casing with 7-1/2" window mill. Operation Summary: Run in the hole with Baker Whipstock Assembly from 2,550'md to 3,566'md. (0.5 hrs) Make up top drive. Break circulation at 6 bpm 750 psi to check for MWD response, OK. Blow down top drive. Baker representative held PJSM on running Baker Whipstock. (0.5 hrs) Run in the hole with Baker Whipstock Assembly from 3,566'md to 7,716'md. Make up top drive. Break circulation. Fill pipe. Blow down top drive. (3 hrs) Run in the hole with Baker Whipstock Assembly from 7,716'md to 9,174'md. Make up top drive. Break circulation. Fill pipe. Blow down top drive. (2 hrs) Run in the hole with Baker Whipstock Assembly from 9,174'md to 9,799'. Make up top drive. Break circulation. Fill pipe. (1 hrs) Orientate Baker Whipstock assembly to 340 deg. tool face. Slack off on drill to 22k down, observed setting of bottom anchor on whipstock. Continue to slack off to 45k and shear traveling bolt on window mill. Start 7-1/2" milling operation. (2 hrs) Start milling operations at 9,872'md. Pump rate at 8 bpm 1,200 psi. PUW 222k, SOW 240k, ROTW 235k. Mill casing to 9,875'md. Mix and pump 25 bbl hi -vis sweep to clean hole. Observed metal shavings in mud return to surface. Stop to repair trouble light on top drive. (7 hrs) Service top drive and rig. Reset trouble light on low oil side. (1 hrs) Start milling operations. Work 7-1/2' mill back to bottom at 9,875'md. Top drive operations shut down. (2 hrs) Rig Mechanic trouble shooting top drive issue. Discoverd break tripped in VFD house due to high torque. Reset and function test top drive. OK. (3 hrs) Resume milling operations. Work 7-1/2" back to 9,875'md. Continue milling operations. (2 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 55 Filtrate: 9.4 Surveys: None Daily Costs ($): 23,363 Well Costs ($): 12,597,940 Drilling Days: 148 Completion Days: 0 Workover Days: 0 11 -Jan -10 Current Depth (ft): 9,877 Hole Drilled (ft): 2 Ave ROP: 0.3 Current Ops: Pull drill string out of the hole to change out milling assembly. Operation Summary: Trouble shoot top drive issues. Unable to rotate drill string. Contact NOV Help Desk for support. Hydraulic fluid cold and unable to circulate. Heat up hydraulic fluid pump. Regained drill string rotation. Service Rig. (7.5 hrs) Resume milling operations. Mill window in casing with 7-1/2" Mill. Mill casing from 9,875' to 9,877'. Move drill string multipile times to deal with hi -torque. Continue milling operations. Milling rate slowed done. Decision made to pull drill string and change mill. (10.5 hrs) Circulate hi -vis sweep to clean hole. Circualte bottoms up. (1.5 hrs) Pull drill string from 9,877'md to 1,200'md to change milling assembly. Observed wash out in drill string at 2,550'md. Lay down washed out joint of drill pipe. Resume tripping out of hole with drill pipe. (4.5 Printed: 12:06 15 -Oct -10 R/MBase Page: 59 or 96 • • N� Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salman Sect: 14 Town: 17S Ring: 44W County: Bristol Bay Borough hrs) Comments: Mud Data: MW: 9.25 Viscosity: 61 Filtrate: 6.9 Surveys: None Daily Costs ($): 27,723 Well Costs ($): 12,625,660 Drilling Days: 149 Completion Days: 0 Workover Days: 0 12 -Jan -10 Current Depth (ft): 9,877 Hole Drilled (ft): 0 Ave ROP: 0.2 Current Ops: Pull out of with tapered tap fishing assembly. Operation Summary: Pull out of hole with milling assembly to surface. 7-1/2" mill twisted off bottom of window mill. (4 hrs) Break out and lay down milling assembly. Clear rig floor. Waiting on delivery of tapered tap to fish mill. (1 hrs) Slip & Cut 100' of drilling line. (4 hrs) Change gear box oil in top drive. Observed small metal particles in used oil. Send in sample to be analyzed. (3 hrs) Make up fishing BHA. Taper Tap, Bumper sub, jars, drill collars. Run in hole with assembly. (2 hrs) Run in the hole with tapered tap fishing assembly. (6 hrs) Make up top drive. Rotate and wash down into fish at 9,877'. Work drill string, observed 7-10k overpull. (2 hrs) Pull out of hole with tapered tap assembly from 9,877'. (2 hrs) Comments: Mud Data: MW: 9.25 Viscosity: 49 Filtrate: 7 Surveys: None Daily Costs ($): 21,743 Well Costs ($): 12,647,410 Drilling Days: 150 Completion Days: 0 Workover Days: 0 13 -Jan -10 Current Depth (ft): 9,877 Hole Drilled (ft): 0 Ave ROP: Current Ops: Circulate and condition mud at top of fish 9,866'. Operation Summary: Pull out of hole with tapered tap from 9,094' to surface. No recovery of mill. (9 hrs) Modify taper tap by cutting off 3" and making mule shoe on bottom. (0.5 hrs) Run in hole with taper tap to 2,580'. Thaw out frozen stand pipe. Circulate bottoms up. Run in the hole to 5,038'. Circulate and condition mud. Run in the hole to 7,589'. Circulate and condition mud. Blow down top drive. Run in the hole to top of fish at 9,866'. Circulate and condition mud (14.5 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 44 Filtrate: 6.3 Surveys: None Daily Costs ($): 17,241 Well Costs ($): 12,664,650 Drilling Days: 151 Completion Days: 0 Workover Days: 0 14 -Jan -10 Current Depth (ft): 9,877 Hole Drilled (ft): 0 Ave ROP: Current Ops: Testing BOPE Operation Summary: Work down to top of fish at 9,877'. Observed drill string torque up to 7-10k. Pick up drill string with 8-10k overpull. All indications that taper tap is screwed into mill. (1 hrs) Pull out of hole very slow from 9,877' to surface. Mill recoverd. Mill attached onto tapered tap. (11 hrs) Break out and lay down all fishing tools. Clear rig floor. (1 hrs) Make up 3 stands drill pipe below 13-5/8" BOPE test plug. (1 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: ou or ars • • CN) Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: Q-1' ) Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Rig up and lay out test lines for Bj Services to Test BOPE. (1 hrs) Service rig, General house keeping on rig floor and subbase. Service Drawworks and Top Drive. (2 hrs) Run air and water to BJ Services Test Pump. Check all surface high pressure test lines. (2 hrs) Held PJSM with all crew members, Reviewed BOPE test procedure. Completed rig up for testing. (1 hrs) Pressure test BJ Services lines to 5,000 psi. OK. Prepare for BOPE testing. (1 hrs) Pressure Test all BOPE. Test hydril 3,500/250 psi. Test upper pipe rams, choke and kill line valves to 4,500/250 psi. Continue BOPE tetsing. (3 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 48 Filtrate: 6.2 Surveys: None Daily Costs ($): 18,654 Well Costs ($): 12,683,300 Drilling Days: 152 Completion Days: 0 Workover Days: 0 15 -Jan -10 Current Depth (ft): 9,877 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in the hole with 7-1/2" milling assembly on drill pipe. Operation Summary: Test BOPE. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC had been notified of upcoming BOPE test on 1-13-10. (3 hrs) Pull 13-5/8" test plug and stand back 3 stands of drill pipe in the derrick. (1 hrs) Blow down and freeze protect all lines. Service rig and top drive. (1 hrs) Make up 7-1/2" Window mill and BHA, Run in the hole to 242'. (1 hrs) Run in the hole with milling assembly to 2,597'. (2 hrs) Attempt to circulate drill string. Pressured up to 1,500 psi. Unable to circulate. (0.5 hrs) Run in the hole with milling assembly to 5,003'. (1.5 hrs) Attempt to circulate drill string. Pressured up to 1,500 psi. Unable to circulate. (0.5 hrs) Pull plugged drill string from 5,003' to surface. Investigate 7-1/2" window mill. Discovered mill has no flow path thru the center. Contact local machine shop to mill flow path thru tool. (5.5 hrs) Machine flow path thru mill. Return 7-1/2" window mill to rig. Service rig and top drive. Clean rig floor. (2 hrs) Make up 7-1/2" Window mill and run in the hole with drill pipe to 2,591'. Make up top drive. Break circulate at 600 psi 5 bpm. Blow down top drive. (3 hrs) Run in the hole with 7-1/2" milling assembly to 5,057'. Make up top drive. Break circulation at 600 psi 5 bpm. Blow down top drive. (2 hrs) Run in the hole with 7-1/2" milling assembly to 6,450'. (1 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 47 Filtrate: 6.2 Surveys: None Daily Costs ($): 188,103 Well Costs ($): 12,871,410 Drilling Days: 153 Completion Days: 0 Workover Days: 0 16 -Jan -10 Current Depth (ft): 9,896 Hole Drilled (ft): 19 Ave ROP: Current Ops: Make up 7-1/2" Bit and BHA drilling assembly. Operation Summary: Run in the hole to 9,825' with 7-1/2" window mill. (4 hrs) Circulate and condition mud. Lay down 1 -joint drill pipe. Change shaker screens. (1 hrs) Printed- 12-M 1.9Ort-ln R/MBase Page: 61 of 98 0 r� y N,.y.. Well Summary Report knek Electric Association, Inc. Well ID; G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Mill 7-1/2" window section thru 8-5/8" casing from 9,877' to 9,896'. (11 hrs) Circulate and condition hole. (1.5 hrs) Pull out of hole from 9,896' to surface with 7-1/2" window milling assembly. Lay down milling assembly. Clear rig floor. (6.5 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 47 Filtrate: 6.4 Surveys: None Daily Costs ($): 19,278 Well Costs ($): 12,890,680 Drilling Days: 154 Completion Days: 0 Workover Days: 0 17 -Jan -10 Current Depth (ft): 9,896 Hole Drilled (ft): 0 Ave ROP: 1.7 Current Ops: Pull out of hole to change BHA. Operation Summary: Make up new 7-1/2" Bit and BHA #12. Run in the hole with BHA to 615'. (5 hrs) Run in the hole with BHA # 12 to 1,171'. Make up top drive, Break circulation. Shallow test MWD tool. OK. Blow down top drive. (1 hrs) Run in the hole with BHA # 12 to 4,690'. Make up top drive, Break circulation. Shallow test MWD tool. OK. Blow down top drive. (3 hrs) Run in the hole with BHA # 12 to 7,136'. Make up top drive, Break circulation. Test MWD tool. OK. Blow down top drive. (2 hrs) Make up CCV circulating valve. (1 hrs) Run in the hole with BHA # 12 to 8,626'. Make up top drive, Break circulation. Test MWD tool. OK. Blow down top drive. (2 hrs) Service rig and Top Drive. (1 hrs) Run in the hole from 8,626' to 9,781' with BHA #12. Make up top drive. Break circulation. Wash and ream thru whipstock from 9,781' to 9,875'. (2 hrs) Wash and ream thru whipstock, Rotate drill string and attempt to work thru window. Work drill string down to 9.895'. Unable to work drill string into open hole. (2 hrs) Circulate bottoms up. (1 hrs) Pull out of hole from 9,895' to 3,600'. (4 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 42 Filtrate: 6.4 Surveys: None Daily Costs ($): 38,883 Well Costs ($): 12,929,570 Drilling Days: 155 Completion Days: 0 Workover Days: 0 18 -Jan -10 Current Depth (ft): 9,920 Hole Drilled (ft): 24 Ave ROP: Current Ops: Pull out of hole to change BHA, also looking for wash out in drill string. Operation Summary: Pull out of hole with BHA #19 from 3,537' to surface, at BHA. (3 hrs) Lay Down BHA # 19 (1 hrs) Make up BHA # 20, 7-1/2" bit and 2 ea watermelon casing mills. Run in hole to 998'. (2 hrs) Run in the hole with BHA # 20 from 998' to 9,872'. Stop and fill pipe at 2,571' and 5,043'. (6 hrs) Make up top drive. Break circulation. Wash and ream down thru whipstock and window from 9,872' to 9,896'. Wipe window section several times with watermelon mills to clean up area. (1.5 hrs) Drill from 9,896 ft to 9.920 ft. Rotary drill 7-1/2" open hole section. Observed pump pressure loss of 300 psi. Check all surface equipment, OK. (7.5 hrs) Mix and pump rope sweep looking for wash out. Pull out of hole looking for wash out in drill pipe. (3 hrs) Comments: E3-'-4-4. 47•AG 4G_/1n{_4n R/MRmco Paae: 62 of 98 Printed: 12:06 15 -Oct -10 R/MBase rage: o:s or ars Summary Report knek Electric Association, Inc. NoWell Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Mud Data: MW: 9.2 Viscosity: 43 Filtrate: 5.8 Surveys: None Daily Costs ($): 26,057 Well Costs ($): 12,955,620 Drilling Days: 156 Completion Days: 0 Workover Days: 0 19 -Jan -10 Current Depth (ft): 9,940 Hole Drilled (ft): 20 Ave ROP: 3.2 Current Ops: Drilling 7-1/2" open hole section. Operation Summary: Pull out of hole to change BHA and located wash out in Drill pipe at 2,839'. Lay down damaged joint of drill pipe. Pick up replacement joint and adjust drill pipe tally. (3 hrs) Pull out of hole from 2,839' to BHA at Surface. (2 hrs) Lay down clean out BHA. Clear rig floor. (1 hrs) Service rig and top drive. (1 hrs) Make up BHA # 21 with new Bit # 13. Run in the hole to 628'. (2 hrs) Run in the hole from 628' to 7,528'. Test MWD tool at 2,598', 5.056', and 7,528'. (7 hrs) Install RCD. (1 hrs) Run in the hole from 7,528' to 9,920'. Wash down from 9,696' to 9,920'. Window clean & clear. (2.5 hrs) Drill from 9,920 ft to 9,940 ft. Rotary drill 7-1/2" open hole section. (4.5 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 39 Filtrate: 4.8 Surveys: None Daily Costs ($): 41,202 Well Costs ($): 12,996,830 Drilling Days: 157 Completion Days: 0 Workover Days: 0 20 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): 27 Ave ROP: 4.4 Current Ops: Run in the hole with new bit & mud motor. Operation Summary: Drill from 9,920 ft to 9,967 ft. Rotary drill & slide 7-1/2" open hole section. Attempt to turn and build hole angle. Observed high torque and mud motor stall out. Unable to drill past 9,967' (9 hrs) Pull out of hole from 9,967' to investigate bit& mud motor. Remove RCD. (4 hrs) Pull out of hole from 2,119 to surface. At BHA. (2 hrs) Lay down bit & motor. Both in good condition. No visible damage. (1 hrs) Make up new bit & Mud motor. Run in the hole with BHA to 463'. (2 hrs) Run in the hole from 463' to 2,209'. (2 hrs) Slip and cut 144' drilling line. (3 hrs) Run in the hole from 2,209 to 2,500'. (1 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 71 Filtrate: 4.8 Surveys: None Daily Costs ($): 47,953 Well Costs ($): 13,044,780 Drilling Days: 158 Completion Days: 0 Workover Days: 0 21 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): 0 Ave ROP: 3.0 Current Ops: Lay down BHA from rig floor Operation Summary: Repair Brake water system on drawworks. (3 hrs) Run in the hole with drill pipe to 7,335'. Fill pipe at 5,000'. (3 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: o:s or ars • • N" Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14, Town: 17S Rng: 44W County: Bristol Bay Borough Install CCV in drill string. Also set in RCD head. Fill drill pipe. (1 hrs) Run in the hole with drill pipe from 7,335' to 9,913'. (2 hrs) Make up top drive. Break circulation. Take survey. Wash & Ream to bottom at 9,967'md. (1 hrs) Attempt to make set with mud motor to sidetrack well. Unable to hold tool face. Motor stalls out. Slack off drill string downhole with little or no resistance. Appears drill string in old wellbore. Slack off drill string to confirm old hole has been re-enterd. Wash down to 9,995'. (3.5 hrs) Back ream drill string up to 9,870'. Above window. Prepare to circulate bottoms up. (1.5 hrs) Circulate bottoms up. No changes observed at shakers. (1 hrs) Pull drill pipe out of hole from 9,870' to 159'. Lay down CCV and pull RCD head. At BHA. (7 hrs) Lay down monel drill collars and BHA. (1 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 46 Filtrate: 5.2 Surveys: None Daily Costs ($): 33,066 Well Costs ($): 13,077,840 Drilling Days: 159 Completion Days: 0 Workover Days: 0 22 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): 0 Ave ROP: Current Ops: Completed BOPE testing. Prepare to lay down 4" drill pipe. Operation Summary: Lay down all directional tools and drill bit. Clear rig floor. (2 hrs) Susoend drilling operations. Decision made to perform new sidetrack operations outside 11-3/4" casing. (4 hrs) Suspend drilling operations. Preparing to test BOPE. General Houskeeping. Install thread protectors on 6-5/8" casing. (7 hrs) Rig up BJ Services test lines. Run air and water lines to BJ unit. Held PJSM with all crew members on BOPE testing. Pressure test line to 5,000 psi. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC Jim Regg waived witnessing BOPE test. (11 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 23,518 Well Costs ($): 13,101,360 Drilling Days: 160 Completion Days: 0 Workover Days 23 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): 0 Ave ROP: Current Ops: Pull out of hole with 5" drill pipe. 0 Printed: 12:06 15 -Oct -10 RIMBase rage: 00 or ya Well Summary Report knek Electric Association, Inc. N Well ID: G-1 Well Name, 0-1 Field: King Salman Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough to set BP. 8-5/8" Baker Bridge Plug did not set. (2 hrs) Pull out of hole with 5" drill pipe. (1 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 38,039 Well Costs ($): 13,139,400 Drilling Days: 161 Completion Days: 0 Workover Days: 0 24 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): 0 Ave ROP: Current Ops: Suspend drilling operations. Rebuild catheads on drawworks. Operation Summary: Pull out of hole with 5" drill pipe. Break out and lay down Baker running tool. Appears 8-5/8" Bridge Plug did release but not set as slack off was 15' past setting depth with no resistance. Clear Rig floor. (5 hrs) Make up test plug on 1 - stand of drill pipe. Set 13-5/8" test plug in wellhead to suspend well operations. (1 hrs) Suspend drilling operations. Perform houskeeping duties. Rebuild both catheads on drawworks. (18 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 16,074 Well Costs ($): 13,155,480 Drilling Days: 162 Completion Days: 0 Workover Days: 0 25 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,034 Well Costs ($): 13,163,510 Drilling Days: 163 Completion Days: 0 Workover Days: 0 26 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 6,233 Well Costs ($): 13,169,740 Drilling Days: 164 Completion Days: 0 Workover Days: 0 27 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Printed: 12:06 15 -Oct -10 RIMBase rage: 00 or ya • r- Well Summary Report knek Electric Association, Inc. N" Well ID: G-1 Well Dame: a-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 6,233 Well Costs ($): 13,175,980 Drilling Days: 165 Completion Days: 0 Workover Days: 0 28 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,033 Well Costs ($): 13,184,010 Drilling Days: 166 Completion Days: 0 Workover Days: 0 29 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,033 Well Costs ($): 13,192,040 Drilling Days: 167 Completion Days: 0 Workover Days: 0 30 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 6,233 Well Costs ($): 13,198,270 Drilling Days: 168 Completion Days: 0 Workover Days: 0 31 -Jan -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Printed: 12:06 15 -Oct -10 RIMBase rage: 00 or ya • • N. Weil Summary Report .knek Electric Association, Inc. h Well ID: G-1 Wel! Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Daily Costs ($): 6,233 Well Costs ($): 13,204,510 Drilling Days: 169 Completion Days: 0 Workover Days: 0 01 -Feb -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,033 Well Costs ($): 13,212,540 Drilling Days: 170 Completion Days: 0 Workover Days: 0 02 -Feb -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,033 Well Costs ($): 13,220,570 Drilling Days: 171 Completion Days: 0 Workover Days: 0 03 -Feb -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,033 Well Costs ($): 13,228,610 Drilling Days: 172 Completion Days: 0 Workover Days: 0 04 -Feb -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,033 Well Costs ($): 13,236,640 Drilling Days: 173 Completion Days: 0 Workover Days: 0 05 -Feb -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Printed: 12:06 15 -Oct -10 RIMBase rage. of v! yo • • Printed., 12:06 15 -Oct -10 RIMBase rage: 06 or as Well Summary Report .knek Electric Association, Inc, C Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 8,033 Well Costs ($): 13,244,670 Drilling Days: 174 Completion Days: 0 Workover Days: 0 O6 -Feb -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 244,613 Well Costs ($): 13,489,290 Drilling Days: 175 Completion Days: 0 Workover Days: 0 07 -Feb -10 Current Depth (ft): 9,967 Hole Drilled (ft): Ave ROP: Current Ops: Suspend Drilling Operations. Operation Summary: Suspend Drilling Operations. (24 hrs) Comments: Mud Data: None Surveys: None Daily Costs ($): 12,404 Well Costs ($): 13,501,690 Drilling Days: 176 Completion Days: 0 Workover Days: 0 08 -Feb -10 Current Depth (ft): 9,967 Hole Drilled (ft): 0 Ave ROP: Current Ops: Pepare to run 11-3/4" Bridge Plug. Operation Summary: Start drawworks and mud pumps. Circulate mud pumps with fluid from pits. P/U drill pipe elevators. Adjust brakes on drawworks. Change out tugger line. P/U and set in mouse hole. Repair cathead. P/U and run in the hole with 15- 6-1/2" drill collars. Pull out of hole and stand back 6-1/2" drill collars in derrick. M/U drill pipe below 13-5/8" test plug. Set same in wellhead. (12 hrs) Held PJSM with all crew members on testing BOPE. M/U tets jt. R/U test lines to BJ Services unit. Pressure test all lines to 5,000 psi. Test BOPE. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC PI Jeff Jones waived witnessing BOPE test. (12 hrs) Comments: Mud Data: MW: 9.1 Viscosity: 33 Filtrate: 10 Surveys: None Daily Costs ($): 17,304 Well Costs ($): 13,518,990 Drilling Days: 177 Completion Days: 0 Workover Days: 0 Printed., 12:06 15 -Oct -10 RIMBase rage: 06 or as • • N ; , Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 09 -Feb -10 Current Depth (ft): 7,635 Hole Drilled (ft): 0 Ave ROP: Current Ops: Pulling drill string out of hole to inspect Baker Whipstock Milling Assembly. Operation Summary: Service top drive and rig. Lay down all 4" tools from rig floor. (2 hrs) Held PJSM on running Bridge Plug. Strap, caliper, and drift 11-3/4" Bridge Plug. M/U on drill pipe. (2 hrs) Run in hole with 11-3/4" Bridge Plug to 7,635'. (3.5 hrs) M/U top drive. Rotate drill string to set 11-3/4" Bridge Plug. Shear running tool. Confirm bridge plug set, OK. Line up mud pumps. Break circulation. (0.5 hrs) Circulate and condtion mud. Pump rate 14 bpm at 900 psi. (2.5 hrs) Blow down top drive. Pull out of hole to running tool. Lay down same. (3.5 hrs) Held PJSM on picking up Baker Whipstock Assembly. Strap, caliper, and drift all tools for Whipstock Assembly. M/U anchor, whipstock, bolt path maker mill to whipstock face, lower watermelon mill, flex jt, upper watermelon mill, and MWD tool. (4 hrs) M/U filter sub and XO. Scribe and orient whipstock to MWD tool. (1 hrs) Run in the hole with Whipstock assembly to 779'. M/U top drive. Break circulation and test MWD tool, OK. Blow down top drive. (2 hrs) Run in the hole with Whipstock Assembly. Path maker window mill hung up in 11-3/4" liner at 2,602. (TOL 2,560') Work pipe no movement down. Pull 20k over string weight, no movement. Discuss options with Baker Tool Hand. Work drill string to free window mill with 50k overpull. (1 hrs) Pull out of hole to inspect Baker Whipstock Milling Assembly. (2 hrs) Comments: Mud Data: MW: 9 Viscosity: 38 Filtrate: 9.3 Surveys: None Daily Costs ($): 23,806 Well Costs ($): 13,542,800 Drilling Days: 178 Completion Days: 0 Workover Days: 0 10 -Feb -10 Current Depth (ft): 7,635 Hole Drilled (ft): 0 Ave ROP: Current Ops: Pull out of hole with retrieving hook. Operation Summary: Pull out of hole with Whipstock Milling Assembly. At BHA. (1 hrs) Stand back drill collars in derrick. Lay down MWD tools and milling assembly. Whipstock bolt had sheared off mill. Left in hole. Gauge mills. All mills gauge at 10.625" OD. (3.5 hrs) Make up retrieveing hook for whipstock, jars, and bumper sub. Run in the hole to 530' with fishing BHA. (2.5 hrs) Run in the hole with retrieving hook to 2,574'. (1 hrs) Work drill sting in attempt to engage retrieval hook into whipstock face. Blow down top drive. (2.5 hrs) Pull out of hole with retrieval hook. No recovery. (3.5 hrs) Modify retrieval tool with slight bend to stem. (1 hrs) Run in the hole with retrieving hook to 2,574'. (3 hrs) Work drill sting in attempt to engage retrieval hook into whipstock face down to 2,605'. Blow down top drive. (3.5 hrs) Pull out of hole with retrieval tool to 530'. At BHA. (2.5 hrs) Comments: Mud Data: MW: 9 Viscosity: 39 Filtrate: 9.3 Surveys: None Daily Costs ($): 51,891 Well Costs ($): 13,594,690 Drilling Days: 179 Completion Days: 0 Workover Days: 0 11 -Feb -10 I Current Depth (ft): 7,635 Hole Drilled (ft): 0 Ave ROP: Printed: 12:06 15 -Oct -10 KIMCase , aY.. • • :N Well Summary Report knek Electric Association, Inc: Well ID: G-1 Well Name: G-1 t Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Current Ops: Lay down whipstock, Make up 10-5/8" bit and mills for clean out run. Operation Summary: Pull out of hole with retreiving hook to surface. No recovery. (2 hrs) Lay down fishing tools. Clear rig floor. Service rig and top drive. (1 hrs) Switch rig generators. (0.5 hrs) Make up Mule shoe on 5" drill pipe. Run in hole and tag up on top of whipstock at 2,630'. (2 hrs) Circulate and condition mud. Pump rate at 11 bpm 230 psi. (0.5 hrs) Pull out of hole with mule shoe. Lay down same. (1.5 hrs) M/U Whipstock retrieving tool, RIH with DC's. to 530'. (1 hrs) Run in the hole with whipstock retrieving tool. Tag up on whipstock at 2,624'. (1.5 hrs) Work whipstock free, run in the hole chasing whipstock to top of 11-3/4" bridge plug at 7,600' (4 hrs) Work whipstock retrieving hook numerous times in attempt to latch onto slide. Hooked whipstock, observed 4k overpull. To verify latch up, released hook. Reset hook on whipstock. (4 hrs) Pull out of hole with whipstock. Released whipstock from hook and lay down same. Baker Tool Hand to inspect anchor to determine if able to rerun. No damaged observed on whipstock. (6 hrs) Comments: Mud Data: MW: 9 Viscosity: 42 Filtrate: 10.3 Surveys: None Daily Costs ($): 61,559 Well Costs ($): 13,656,250 Drilling Days: 180 Completion Days: 0 Workover Days: 12 -Feb -10 I Current Depth (ft): 7,635 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in the hole with Baker 10-5/8" Whipstock Milling Assembly. Operation Summary: Lay down Baker Whipstock and retrieving hook. Clear rig floor. (1 hrs) M/U 10-5/8" drill bit, and 2 - 10.625" string mills. Run in the hole with BHA to 505'. (1 hrs) Run in the hole with clean out assembly to 2,570'. (1 hrs) Make up top drive. Break circulation. Pump rate at 11 bpm 945 psi. Wash and ream thru liner top from 2,570' to 2,670' at 60 rpm. Work thru spot at 2,594' numerous times. Work drill string until clean pick up and slackoff observed. (4 hrs) Run in the hole with 10-5/8" milling assembly from 2,670' to 7,616'. Top of 11-3/4" Bridge Plug. (3 hrs) Make up top drive. Break circulation. Circulate and condition mud at 11 bpm 945 psi. Service rig and top drive. (1.5 hrs) Pull out of the hole from 7,616' to 6,765'. Strap out of hole.. Observed hydraulic leak on top drive. (1.5 hrs) Repair hydraulic leak on top drive. (2 hrs) Pull out of the hole from 6,765' to 2,630'. Strap out of hole. (2 hrs) Make up top drive. Rotate and work drill string from 2,630' to 2,530'. Clean pick up and slack offs. (1 hrs) Pull out of the hole from 2,530' to 505'. At BHA. Strap out of hole. (1 hrs) Stand back drill collars in derrick. (1 hrs) Break out and lay down 10-5/8" milling assembly. (1 hrs) Pick up and make up Baker 10-5/8" Whipstock milling assembly. Install window mill to whipstock face with 60k shear bolt. Make up MWD tool. Scribe in and orient whipstock to MWD high side. Run in the hole with whipstock assembly. (3 hrs) Comments: Mud Data: MW: 9 Viscosity: 40 Filtrate: 10 Surveys: None Printarl• 19.06 1.5 -Ort -10 Page: 70 of 98 1� c: Printed: 12:06 15 -Oct -10 RIMBase rage: 17 orals Well Summary Report .knek Electric Association, Inc. 14% (` Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Daily Costs ($): 23,387 Well Costs ($): 13,679,640 Drilling Days: 181 Completion Days: 0 Workover Days: 0 13 -Feb -10 Current Depth (ft): 7,571 Hole Drilled (ft): 0 Ave ROP: Current Ops: Waiting on fishing tools. Operation Summary: Make up Baker 10-5/8" Whipstock Milling Assembly. (1 hrs) Run in the hole with whipstock assembly to 1,284'. Make up top drive. Break circulation and test MWD tool. Blow down top drive. (1 hrs) Run in the hole with whipstock assembly to 5,998'. Test MWD at 3,477', 4,564', & 5,998'. Observed hydraulic leak on top drive. (4 hrs) Repair hydraulic leak on top drive. (2 hrs) Run in the hole from 5,998' to 7,509'. Test MWD tool at 6,778'. (1.5 hrs) Make up top drive. Orient whipstock as per directional plan to sidetrack well. (0.5 hrs) Slack off and set anchor with 20k, continue downward to shear bolt on whipstock window mill at 60k. Top of whipstock at 7,568'. (0.5 hrs) Mill window in 11-3/4" casing from 7,568' to 7,571. Observed pressure loss and downhole torque loss. (3.5 hrs) Pull out of hole with Baker Whipstock assembly. Flex joint twisted off in pin end. Appears to be a wash out. Fish left in hole 12' long. (6 hrs) Wait on fishing tools from Baker Oil Tools in Kenai. (4 hrs) Comments: Mud Data: MW: 9 Viscosity: 38 Filtrate: 6.8 Surveys: None Daily Costs ($): 26,073 Well Costs ($): 13,705,710 Drilling Days: 182 Completion Days: 0 Workover Days: 0 14 -Feb -10 Current Depth (ft): 7,571 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in the hole with 10-5/8" Window Milling Assembly. Operation Summary: Waiting on fishing tools. Slip and cut 100' drilling line. Inspect and adjust brakes on drum. (4 hrs) Waiting on fishing tools. Service rig and top drive. Replace hydraulic on top drive. (1 hrs) Waiting on fishing tools. Clean rig floor. Move and set in new BOPE test pump in sub base. (2 hrs) Pick up and make up 10-5/8" overshot dressed to catch 7-3/4". Run in the hole with drill collars to 244'. (2 hrs) Run in the hole from 244' to 7,479'. At top of fish. Make up top drive. (4 hrs) Rotate and wash down over top of fish at 7,558'. Observed pump pressure increase. Pick up on drill string and observed slight overpull. Shut down mud pumps. Blow down top drive. (1 hrs) Pull out of hole from 7,558' to surface. Recovered 10-5/8" Window and string mill. (4 hrs) Break out and lay down fishing tool assembly. Pathmaker mill severely damaged with missing cutters and parts of body broke off. (1.5 hrs) Pick up and make up new 10-5/8" Window milling assembly. Run in the hole with drill collars to 511'. (2.5 hrs) Run in the hole with 10-5/8" Window Milling Assembly from 511' to 5,050'. (2 hrs) Comments: Mud Data: MW: 9 Viscosity: 38 Filtrate: 6.8 Surveys: None Daily Costs ($): 27,644 Well Costs ($): 13,733,350 Drilling Days: 183 Completion Days: 0 Workover Days: 0 Printed: 12:06 15 -Oct -10 RIMBase rage: 17 orals • • 0'�N°`,•�, Well Summary Report .knek Electric Association, Inc. Well ID:, G-1 Well Name: G-1 .� ' Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 15 -Feb -10 Current Depth (ft): 7,603 Hole Drilled (ft): 32 Ave ROP: Current Ops: Pull out of hole with 10-5/8" milling assembly. Operation Summary: Run in the hole with 10-5/8" Window milling assembly to 7,523'. (1.5 hrs) Work on top drive. Repair hydraulic line. (0.5 hrs) Mill 10-5/8" window thru 11-3/4" casing to 7,603'. Change milling perimeters numerous times to maintain milling rate. (20 hrs) Circulate and condition mud. Mix and pump a sweep. Circulate until shakers clean up. (1.5 hrs) Pull out of hole with 10-5/8" window milling assembly. (0.5 hrs) Comments: Mud Data: MW: 9 Viscosity: 36 Filtrate: 6.6 Surveys: None Daily Costs ($): 33,708 Well Costs ($): 13,767,060 Drilling Days: 184 Completion Days: 0 Workover Days: 0 16 -Feb -10 I Current Depth (ft): 7,603 Hole Drilled (ft): 0 Ave ROP: Current Ops: Repair hydraulic leak on top drive. Operation Summary: Pull out of hole with Baker Window Milling Assembly. Gauge mills 1/16" out. (5 hrs) Make up 3 stands drill pipe and set 13-3/8" test plug. Make up test joint. Rig up testing equipment. Held PJSM with all crew members on testing BOPE. R/U test lines to pump unit. Pressure test all lines to 5,000 psi. Test BOPE. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC PI Chuck Scheve waived witnessing BOPE test. (7 hrs) Rig down testing equipment. Lay down test joint and 13-3/8" test plug. Blow down all lines. (1 hrs) Pick up and make up 9-7/8" bit and BHA. Make up mud motor, MWD tool and stablizer. (2 hrs) M/U NM Drill Collars. Scribe and orient MWD at surface. Run in the hole with BHA. (1 hrs) M/U drilling jars. Run in the hole with BHA to 629'. (1 hrs) Run in the hole to 1,000'. Make up top drive. Test MWD tool. OK. Blow down Top Drive. (1 hrs) Run in the hole with 9-7/8" drilling assembly to 4,321'. Make up top drive. Check MWD, OK. Blow down top drive. (2 hrs) Run in the hole with 9-7/8" drilling assembly to 7,525'. Make up top drive. Break circulation. (2 hrs) Orient BHA to slide thru window. Work drill string thru window at 7,599'. Observed leak on top drive. (1 hrs) Repair hydraulic leak on top drive. (1 hrs) Comments: Mud Data: MW: 9 Viscosity: 37 Filtrate: 6.6 Surveys: None Daily Costs ($): 29,796 Well Costs ($): 13,796,860 Drilling Days: 185 Completion Days: 0 Workover Days: 0 17 -Feb -10 Current Depth (ft): 7,625 Hole Drilled (ft): 22 Ave ROP: Current Ops: Directionally drilling ahead. Oriented and drilling away from Window Top @ 7,568' md. Drilling to 7,625' md. Operation Summary: H.S.E w/ Crew. Rig down & blow down all lines and equipment. (1 hrs) Work on and repair Top drive. (1 hrs) Run in the hole to 7,599' md. Orient Drilling assembly. Top of Window= 7,568' md. Bottom of Printed: 12:06 Page: 72 of 98 • N`. Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name: G4 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Window= 7,590' md. (1 hrs) Drill from 7,599 ft to 7,600 ft md. Break in Bit. (1 hrs) Cautionary drill ahead to 7,601' md. (1 hrs) Continue to cautionary drill ahead to 7,602.1' md. (1 hrs) Directionally drill away from Window. Drill from 7,602 - 7,607' md. WOB 5-15k. RPM 0-30. PUW= 240k. SOW= 235k. ROT wt= 237k. (1 hrs) Continue to directionally drill away from Window. Drill from 7,607 - 7,610' md. WOB 5-15k. RPM 0-30. Orient Tool face. (1 hrs) Directionally drill away from Window. Drill from 7,610 - 7,616' md. WOB 5-15k. RPM 0-30. (1 hrs) Work Drilling assembly. Orient Tool face. Circulate. MWD Tool failure. (1 hrs) Pull out of hole. POH from 7,616' to 378' md. (4 hrs) Lay down failed MWD. Pick up new MWD. (1 hrs) Make up MWD. Scribe MWD Tool face. (1 hrs) Makeup BHA & drill pipe to 1,194' md. Shallow test MWD. Troubleshoot pressure loss. #2 Mud pump 2" By-pass gate washed out. Replace same. RIH to 2,150' md. (3 hrs) Continue to run in the hole. RIH from 2,150' to 7,523' md. Orient drilling assembly. (3 hrs) Orient and slide out of Window (Clean Window!). Directionally drill ahead to 7,622' md. (1 hrs) Directionally drill (slide) ahead from 7,622' to 7,625' md. WOB= 20k. PUW= 236k. SOW= 232k. ROT wt= 234k. 577 gpm / 2100 psi. (1 hrs) Comments: Plug back depth is 7,568' md, Top of the Window. Mud Data: MW: 9 Viscosity: 38 Filtrate: 6.6 Surveys: None Daily Costs ($): 48,675 Well Costs ($): 13,845,530 Drilling Days: 186 Completion Days: 0 Workover Days: 0 18 -Feb -10 Current Depth (ft): 7,840 Hole Drilled (ft): 215 Ave ROP: Current Ops: Directionally drilling ahead @ 7,840' and with slight losses (22- 28 bph). 19 -Feb -10 Operation Summary: Directionally drill away from Window. Drill from 7,625'- 7,631' md. WOB 15-31k. RPM 0-55. PUW= 240k. SOW= 236k. ROT wt= 238k. (1.5 hrs) Drill from 7,631' to 7,637' md. Losing pressure. (0.5 hrs) Replace 2" By-pass valve gate & body on # 2 Mud pump. (0.5 hrs) Directionally drill away from Window. Drill from 7,637 - 7,728' md. WOB 15-32k. RPM 0-55. PUW= 238k. SOW= 242k. ROT wt= 240k. Tq= 5-6k. 680 gpm / 2200 psi. SPR -#1= 72@ 690 psi. SPR -#2= 64@ 560 psi. (3.5 hrs) Directionally drill away from Window. Drill from 7,728'- 7,805' md. WOB 15-32k. RPM 0-55. PUW= 240k. SOW= 236k. ROT wt= 238k. Tq= 5-6k. 680 gpm / 2200 psi. SPR -#1= 72@ 690 psi. SPR -#2= 64@ 560 psi. Losses Noted: 7,616'-7,656' and No losses. 7,656'- 7,781' and — 5bph. 7,781-7,804' and — 25 bph losses. (12 hrs) Directionally drill away from Window. Drill from 7,805'- 7,840' md. WOB 15-32k. RPM 0-70. PUW= 240k. SOW= 236k. ROT wt= 238k. Tq= 5-6k. 680 gpm / 2200 psi. Losses since midnight Noted: 22 to 28 bph losses (6 hrs) Comments: Plug back depth is 7,568' md, Top of the Window. Mud Data: MW: 9 Viscosity: 39 Filtrate: 6.6 Surveys: None Daily Costs ($): 36,270 Well Costs ($): 13,881,800 Drilling Days: 187 Completion Days: 0 Workover Days: Current Depth (ft): 7,915 Hole Drilled (ft): 75 Ave ROP: Current Ops: Drrectionally drilling ahead, trouble free @ 7,915' md. o.:s.,.a• 40-na 4G n.d 4n RI AARP ca 0 430.0 Paae: 73 • • ��.. Well Summary Report .knek Electric Association, Inc. � well ID: G-1 well Name: G-1 Field: King Salmon Sect. 14 Town. 17S Rng: 44W County: Bristol Bay Borough Operation Summary: Directionally drill away from Window. Drill from 7,840' to 7,881' md. Noted a continous slow pressure drop. POH look for Washout. WOB 15-32k. RPM 0-70. PUW= 240k. SOW= 236k. ROT wt= 238k. Tq= 5-6k. 680 gpm / 2200 psi. Losses since midnight Noted: 22 to 28 bph losses. (6 hrs) Circulate to orient Tool face. POH from 7,881' to 7,458' md. No drag noted pulling through Window. (1 hrs) Continue to POH from 7,458' to the BHA @ 631' md. (3 hrs) POH from 631' to 1st D.C. below Jars. Washout in Box of D.C. Pin end on Jars shows signs of erosion. (1 hrs) Lay down washed D.C. & Jars. Continue to POH to 257' md. Inspect BHA while POH. (1 hrs) POH with BHA from 257' and to the Bit. Bit in gauge. Bearing effective. Some signs of erosion. No Broken teeth. (1 hrs) Make up-GX-30DX w/ 3 X 18 - new Bit #16. (SN# 5155768). Make up D.C's to 350' md. (1 hrs) Pick up & strap new D.C. & Jars. FIH w/ BHA to 630' md. (1 hrs) RIH with BHA from 350' to 1,196' md. Shallow test MWD. Service Rig. Adjust Brakes. (1 hrs) RIH w/ Drlg assembly from 1,196' to 7,523' md. Fill pipe every 15 Stds. (3 hrs) Orient Tool face. RIH to 7,879' and (Window Clean). Tag 1' of Fill. Survey to confirm orientation. (1 hrs) Directionally drill ahead from 7,881' to 7,889' md. Mud losses @ 19 bph. Hole in good shape. Begin adding water from overflow reserve Pit. (1 hrs) Directionally drill ahead trouble free from 7,889' to 7,915' md. PUW 245k. SOW 230k. ROT wt 240k. 577 gpm / 2050 psi. (3 hrs) Comments: Adding water from overflow reserve Pit. Mud Data: MW: 9 Viscosity: 38 Filtrate: 6.8 Surveys: None Daily Costs ($): 30,037 Well Costs ($): 13,911,840 Drilling Days: 188 Completion Days: 0 Workover Days: 0 20 -Feb -10 Current Depth (ft): 8,205 Hole Drilled (ft): 290 Ave ROP: Current Ops: Directionally drilling ahead with minor fluid losses. Losses staarting to increase from +/- 25 bph to +/- 50 bph. Operation Summary: Inspect & service Rig. Directionally drilled ahead from 7,915' to 8,054' md. WOB 25-32k. RPM 0-60. PUW= 250k. SOW= 230k. ROT wt= 240k. Tq= 5-6k. 5750 gpm / 2050 psi. Losses Noted: 17 to 30 bph losses. Total losses for tour= 350 bbls. (12 hrs) Directionally drilled ahead from 8,054' to 8,111' md. WOB 25-32k. RPM 0-60. PUW= 245k. SOW= 246k. ROT wt= 248k. Tq= 5-6k. 5750 gpm / 2050 psi. Losses Noted: 17 to 30 bph losses. Total losses for 6 hrs= 250 bbls. (6 hrs) Directionally drilled ahead from 8,111' to 8,205' md. WOB 25-32k. RPM 0-60. PUW= 254k. SOW= 238k. ROT wt= 249k. Tq= 5-6k. 5750 gpm / 2050 psi. Losses Noted: 19 to 50 bph losses. Total losses for 6 hrs= 290 bbls. Total daily losses= 890 bbis (6 hrs) Comments: Mud Data: MW: 9 Viscosity: 40 Filtrate: 6.2 Surveys: None Daily Costs ($): 38,432 Well Costs ($): 13,950,270 Drilling Days: 189 Completion Days: 0 Workover Days: 0 21 -Feb -10 Current Depth (ft): 8,481 Hole Drilled (ft): 276 Ave ROP: Current Ops: POH looking for Washout in the drill string. Hole taking fluid @ 21bbis/hr. Printed: 12:06 15 -Oct -10 R/MBase rage: iv or ya 0 • Well Summary Report .knek Electric Association, inc. N..1 Well ID: G-1 well! Mame: G-1 H Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 22 -Feb -10 Operation Summary: Directionally drilled ahead from 8,205' to 8,275' md. WOB 25-32k. RPM 0-70. PUW= 258k. SOW= 239k. ROT wt= 248k. Tq= 4-8k. 575 gpm / 2100 psi. Losses Noted: 20 to 40 bph losses. (5 hrs) Service Rig & Top Drive. Continue to directionally drilled ahead from 8,275' to 8,280' md. WOB 25-32k. RPM 0-60. PUW= 258k. SOW= 239k. ROT wt= 249k. Tq= 5-8k. 5750 gpm / 2050 psi.Losses Noted: 30 to 40 bph losses. (1 hrs) Directionally drilled ahead from 8,280' to 8,370' md. WOB 25-32k. RPM 0-70. PUW= 260k. SOW= 240k. ROT wt= 250k. Tq= 5-10k. 575 gpm / 2100 psi. Losses Noted: 20 to 40 bph losses. Losses for tour= 410 bbls. Noted a hard spot from 8,314' to 8,317' md, this was followed by a drilling break @ 69 ft/hr from 8,317' to 8,330' md. (6 hrs) Directionally drilled ahead from 8,370' to 8,481' md. WOB 30-32k. RPM 0-60. PUW= 265k. SOW= 240k. ROT wt= 255k. Tq= 5-10k. 575 gpm / 2100 psi. (9 hrs) POH from 8,481' to 2,997' md. Looking for Washout. Pressure loss of 400 psi noted. Losses Noted: 20 to 35 bph losses. Losses for tour= 370 bbls. Total daily losses= 780 bbls. (3 hrs) Comments: A hard spot was encountered from 8,314' to 8,317' md. Then... Drilling break noted @ 8,317' to 8,330' and (69 ft/hr). Mud Data: MW: 8.9 Viscosity: 34 Filtrate: 7 Surveys: None Daily Costs ($): 32,290 Well Costs ($): Drilling Days: 190 Completion Days: Current Depth (ft): 8,668 Hole Drilled (ft): Current Ops: Pull up into casing repair water Tank. 13,982,560 0 Workover Days: 187 Ave ROP: Operation Summary: POH w/ 5" DP to 2,997' md. Repair Top Drive; Repair Bale Kicker spline on Top Drive. (0.5 hrs) Continue to POH from 2,997' to 1,978' md. (0.5 hrs) POH from 1,978' and to the Washed out Jt on the Btm of Std # 76 (1 ft up from tool joint, )(9 stds from the BHA). (Washout is the size of 4 quarters stacked up). Lay down Bad Jt, Pick up replacement Jt. Continue to POH to the BHA @ 631' md. (1 hrs) POH to the BHA @ 631' md. (1 hrs) Handle BHA. Lat down Bit. Clear & clean rig floor. (1 hrs) Service Rig & Top Drive. (1 hrs) Pick up & make up New PDC Bit HCM507ZX. (S N# 7014014)Pick up BHA & RIH to 1,200' md. Shallow test MWD. (2 hrs) RIH w/ BHA on 5" DP from 1,200' to 7,533' md. (3 hrs) Continue to RIH from 7,533' to 8,467' md. Noted a clean Window. No drag noted in open hole. Precautionary ream from 8,467' to bottom @ 8,481' md. (1 hrs) Orient Tool face. Directionally drill ahead. Break Bit in easy with light WOB (1-3K). Drilled from 8,481' to 8,485' md. (1 hrs) Directionally drilled ahead from 8,485' to 8,668' md. WOB 8-15k. RPM 0-60. PUW= 272k. SOW= 238k. ROT wt= 261 k. Tq= 5-8k. 575 gpm / 2100 psi. Losses Noted: 20 to 90 bph losses. Losses for tou—530 bbls. Total daily losses @ 860 bbls (12 hrs) Comments: Mud Data: MW: 8.7 Viscosity: 30 Filtrate: 8.2 Surveys: None Daily Costs ($): 30,338 Well Costs ($): 14,012,900 Drilling Days: 191 Completion Days: 0 Workover Days: 23 -Feb -10 I Current Depth (ft): 8,824 Hole Drilled (ft): 156 Ave ROP: Current Ops: Perform weekly BOPE Test. Printed: 12:06 15 -Oct -10 R/MBase rage: 10 or as • (N� Well Summary Report .knek Electric Association, Inc. / Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Operation Summary: Pull out of hole to 7,430' to repair water storage tank. (1 hrs) Repair water storage tank. Service rig and top drive. (3 hrs) Run in the hole from 7,430' to 8,653'. Make up top drive. Break Circulation. (1 hrs) Drill from 8,668 ft to 8,674 ft. Orient Bit. Drill ahead with motor to turn wellbore. (1 hrs) Change out shaker screens. (0.5 hrs) Drill from 8,674 ft to 8,689 ft. Complete directional work. (0.5 hrs) Drill from 8,689 ft to 8,824 ft. Drill and survey 9-7/8" open hole section. Fluid losses to well continue at 50-70 BPH. Mix and pump sweeps every stand for hole cleaning. Stop drilling to perform weekly BOPE test. (15 hrs) Pull out of hole to 7,344'. Pulled clean thru window. Make up 13-5/8" test plug and joint. Set test plug in wellhead. Preapre to test BOPE. (2 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 29 Filtrate: 11.2 Surveys: None Daily Costs ($): 33,530 Well Costs ($): 14,046,430 Drilling Days: 192 Completion Days: 0 Workover Days: 0 24 -Feb -10 I Current Depth (ft): 8,935 Hole Drilled (ft): 111 Ave ROP: 9.5 Current Ops: Drilling 9-7/8" open hole section. Operation Summary: Held PJSM with all crew members on testing BOPE. R/U test lines to pump unit. Pressure test all lines to 5,000 psi. Test BOPE. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC PI Lou Grimaldi waived witnessing BOPE test. (6 hrs) Pull and lay down test joint and plug. Clear rig floor of testing equipment. (0.5 hrs) Slip and cut 144' drilling line. Service rig and top drive. (3.5 hrs) Run in the hole from 7,344' to 8,750'. Make up top drive and break circulation. (1 hrs) Precautionary wash and ream to bottom from 8,750' to 8,824'. Fluid loss rate at 60-70 bph. (1 hrs) Drill from 8,824 ft to 8,935 ft. Drill 9-7/8" open hole section. Fluid loss rate at 50-70 bph. (12 hrs) Comments: Mud Data: MW: 8.7 Viscosity: 28 Filtrate: 12 Surveys: None Daily Costs ($): 28,405 Well Costs ($): 14,074,830 Drilling Days: 193 Completion Days: 0 Workover Days: 0 25 -Feb -10 I Current Depth (ft): 9,045 Hole Drilled (ft): 110 Ave ROP: 9.3 Current Ops: Drilling 9-7/8" open hole section. Monitor wellbore for fluid losses. Operation Summary: Drill from 8,935 ft to 8,944 ft. Drill 9-7/8" open hole section. ROP less than 5 fph. Decision made to stop drilling and pull out of the hole to change bit. Fluid loss avg 50-70 bph. (2 hrs) Circulate and spot 120 bbl hi -vis pill on bottom. (1 hrs) Pull out of hole from 8,944' to surface. Observed one joint of drill pipe with wash out, stand #11. Stand back BHA. Break off 9-7/8" PDC bit. Bit in good condition. (6 hrs) Run in the hole with new 9-7/8" bit. Shallow test MWD tool OK. Make up top drive. Break circulation and wash and ream to bottom at 8,944'. No fill on bottom. (6 hrs) Drill from 8,944 ft to 9045 ft. Drill 9-7/8" open hole section. Fluid loss avg at 45 to 65 bph. Avg ROP at 15 fph. Pump hi -vis sweeps for hole cleaning. (9 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: ioorya Printed: 12:06 15-00-10 mimtsase rays. 1 i vi V0 Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 y .r Field:. King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Comments: Mud Data: MW: 8.5 Viscosity: 28 Filtrate: 14 Surveys: None Daily Costs ($): 29,834 Well Costs ($): 14,104,670 Drilling Days: 194 Completion Days: 0 Workover Days: 0 26 -Feb -10 Current Depth (ft): 9,325 Hole Drilled (ft): 280 Ave ROP: 10.0 Current Ops: Drilling 9-7/8" open hole section. Monitor wellbore losses. Operation Summary: Drill from 9,045 ft to 9,160 ft. Drill 9-7/8" open hole. Fluid loss rate at 50-70 bph. Bottom hole Temp=139.2 deg. Lost #1 mud pump. (9 hrs) Drill from 9,160 ft to 9,183 ft. Drill 9-7/8" open hole with #2 mud pump. Pump rate 100 spm 1,567 psi. Fluid loss rate at 50-70 bph. (2 hrs) Drill from 9,183 ft to 9,325 ft. Drill 9-7/8" open hole with both mud pumps at 148 spm 2,680 psi. Hole angle below 7 deg. Slide with bit to build hole angle from 9,220' to 9,250'. Survey at 9,265' shows 8.66 deg of hole angle. Current bottom hole temp= 141.9 deg. Fluid loss rate at 40-60 bph. (13 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 28 Filtrate: 20 Surveys: None Daily Costs ($): 75,102 Well Costs ($): 14,179,770 Drilling Days: 195 Completion Days: 0 Workover Days: 0 27 -Feb -10 Current Depth (ft): 9,529 Hole Drilled (ft): 204 Ave ROP: 11.7 Current Ops: Pull out of the hole looking for wash out in drill string. Operation Summary: Drill from 9,325 ft to 9,400 ft. Drill 9-7/8" open hole section. Fluid loss rate at 40-50 bph. Pump 30 bbl hi -vis sweeps to clean the hole. BHT = 141.9 deg. Observed 400 psi pressure loss. Stop drilling. (5 hrs) Mix and pump 100 bbl hi -vis pill on bottom at 9,400'. (0.5 hrs) Pull out of hole from 9,400' to 2,141'. Located wash out in joint of drill pipe on stand 17. (3.5 hrs) Break out and lay down wash out joint of drillpipe. Replace drill pipe. Service rig and top drive. (1 hrs) Run in the hole with drillpipe. Shallow pulse test MWD tool, OK. Run in the hole to bottom at 9,400', no fill on bottom. (4 hrs) Drill from 9,400 ft to 9,529 ft. Drill 9-7/8" open hole section. Fluid loss rate at 40-50 bph. BHT= 141.9 deg. Pump 30 bbl sweeps for hole cleaning. Observed 400 pressure loss. Stop drilling. (9 hrs) Spot 100 bbl hi -vis pill on bottom. Pull out of the from 9,529' to 8,500' hole looking for wash out in drill string. (1 hrs) Comments: Mud Data: MW: 5.5 Viscosity: 28 Filtrate: 20 Surveys: None Daily Costs ($): 32,538 Well Costs ($): 14,212,310 Drilling Days: 196 Completion Days: 0 Workover Days: 0 28 -Feb -10 Current Depth (ft): 9,602 Hole Drilled (ft): 73 Ave ROP: 14.6 Current Ops: Change out BHA. Make up new Bit, Mud Motor, MWD Tool. Operation Summary: Pull out of the hole looking for wash out in drill string. Observed washout in joint of drillpipe at 1,823' from bit. Top of stand #13. (3 hrs) Change out wash out joint of drill pipe. Service top drive and rig. (1 hrs) Printed: 12:06 15-00-10 mimtsase rays. 1 i vi V0 Well Summary Report .knek Electric Association, Inc. Nom✓ Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Service top drive engine. Change oil in cat engine. Top drive will not rotate. Work on top drive issues. Resolve issues with top drive. (2.5 hrs) Make up top drive. Break circulation. Shallow test MWD tool, OK. (0.5 hrs) Run in the hole from 1,823' to 5,169'. Make up top drive. Break circulation. Test MWD OK, Blow down top drive and mud pumps. (2 hrs) Run in the hole from 5,169' to 9,409'. Make up top drive. Break circulation. (3 hrs) Precautionary wash and ream to bottom at 9,525'. No fill. Hole in good condition. (1 hrs) Drill from 9,525 ft to 9602 ft. Drill 9-7/8" open hole section. Fluid loss rate 40-50 bph. Mix and pump 30 bbl hi -vis sweeps to clean hole. BHT = 139.2 deg. Mud motor torqued and pressured up. Stop drilling. (6 hrs) Pump and spot 100 bbl hi -vis pill on bottom. Pull out of the hole from 9,602' to 555'. At BHA. (5 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 28 Filtrate: 20 Surveys: None Daily Costs ($): 23,703 Well Costs ($): 14,236,010 Drilling Days: 197 Completion Days: 0 Workover Days: 0 01 -Mar -10 Current Depth (ft): 9,699 Hole Drilled (ft): 97 Ave ROP: 12.2 Current Ops: Drilling 9-7/8" open hole section. Monitor well bore for fluid losses. Operation Summary: Break out and lay down BHA & Bit. (2 hrs) Pick up and make up new BHA & Bit. (2 hrs) Run in the hole with BHA, Orient and scribe BHA. Move jars one stand up in drill string. (2 hrs) Run in the hole picking up 14 jts 5" drill pipe from pipe rack. (1 hrs) Make up top drive. Break circulation. Shallow test MWD tool, OK. Blow down top drive. (1 hrs) Run in the hole picking up 16 jts of 5" drill pipe from pipe rack. (1 hrs) Run in the hole with drill pipe to 4,131'. Observed damaged joint of drill pie. Break out and lay down same. (1 hrs) Run in the hole with drill pipe from 4,131' to 5,362'. Make up top drive and fill the hole, test MWD tool, OK. Blow down top drive. (1 hrs) Run in the hole with drill pipe from 5,362' to 9,512'. Make up top drive and break circulation. (2 hrs) Precautionary wash and ream to bottom at 9,602'. Observed 8' of fill on bottom. Circulate and condition hole prior to drilling. (1 hrs) Drill from 9,602 ft to 9,699 ft. Drill 9-7/8" open hole. Fluid loss rate at 30-40 bph. Pump 30 bbl hi -vis sweeps for hole cleaning. BHT = 141.9 deg. (10 hrs) Comments: Mud Data: MW: 8.5 Viscosity: 28 Filtrate: 15 Surveys: None Daily Costs ($): 30,006 Well Costs ($): 14,266,020 Drilling Days: 198 Completion Days: 0 Workover Days: 0 02 -Mar -10 Current Depth (ft): 9,792 Hole Drilled (ft): 93 Ave ROP: 9.7 Current Ops: Wash and ream drill string from 9,602' to 9,699'. Operation Summary: Drill from 9,699 ft to 9,763 ft. Drill 9-7/8" Open hole section. Fluid loss rate at 30-40 bhp. Observed t drilling break up to 45' ROP. Attempt to make up new stand of drill pipe. Unable to work pipe. Stand back drill pipe. BHT = 141.9 deg. (2.5 hrs) Wash and Ream from 9,705' to 9,763'. Work drill string thru tight hole sections. Hole packing off with cuttings. Rotate and recriprocate drill string thru tight hole and packoffs. Mix and pump numerous polymer sweeps in attempt to clean up hole. (10.5 hrs) Circulate and condition hole. Mix gel 6 ppb to raise Visc and mud properties to improve hole cleaning. Printed: 12:06 15 -Oct -10 R/MBase Page: 78 of 98 0A j 4 'N Well Summary Report, knek Electric Association, Inc. CA Well ID: G-1 Well Name: G-1 Field: Ktng Salmon, Sect: 14 Town: 178 Rng: 44W County: Bristol Bay Borough Rotate and recriprocate drill string. Hole conditions improved. (2 hrs) Drill from 9,763 ft to 9,792 ft. Drill 9-7/8" open hole section at 15-18 fph ROP. Fluid loss at 50-60 bph. Attempt to make connection. Observed packing off and tight hole. (2 hrs) Work tight hole and hole packing off. Work drill string free at 9,730'. Pull drill pipe up to 9.602'. Circulate and rotate drill string. (2 hrs) Circulate and condition mud. Weight up mud system to 8.8 ppg with Barite. Rotate and recriprocate drill string to condition hole. (4 hrs) Rotate and circulate while running in the hole from 9,602' to 9,699'. Work drill string to avoid packoffs and tight hole spots. (1 hrs) Comments: Mud Data: MW: 8.8 Viscosity: 35 Filtrate: 11 Surveys: None Daily Costs ($): 307,816 Well Costs ($): 14,573,830 Drilling Days: 199 Completion Days: 0 Workover Days: 0 03 -Mar -10 Current Depth (ft): 9,880 Hole Drilled (ft): 88 Ave ROP: 20.7 Current Ops: Performing weekly BOPE test. Operation Summary: Wash and ream 9-7/8" open hole section from 9,699' to 9,792'. Continue to weight up mud system to 8.95 ppg. Continue to monitor fluid loss rate at 40-70 bph. (12 hrs) Drill from 9,792 ft to 9,880 ft. Drill 9-7/8" open hole section. Fluid loss rate at 60-70 bph. BHT = 133 deg. Avg. ROP = 15 fph. Stop drilling to pull out of hole for BOPE test. (8 hrs) Circulate and condition hole for trip. (1 hrs) Pull out of hole for BOPE test from 9,880' to 9,815. Wash & Ream from 9,815' to 9,842' with top drive. Continue to pull out of hole to 7,437'. Make upl3-5/8" test plug. Set plug in wellhead. Drain stack. (2 hrs) Complete setting 13-5/8" test plug in wellhead. Fill BOP stack with test fluid. Rig up test equipment. (1 hrs) Comments: Mud Data: MW: 8.95 Viscosity: 36 Filtrate: 9 Surveys: None Daily Costs ($): 40,865 Well Costs ($): 14,614,700 Drilling Days: 200 Completion Days: 0 Workover Days: 0 04 -Mar -10 I Current Depth (ft): 9,900 Hole Drilled (ft): 20 Ave ROP: 11.0 Current Ops: Drill 9-7/8" open hole section. Monitor fluid losses at 50-70 bph. Operation Summary: Held PJSM with all crew members on testing ROPE. R/U test lines to pump unit. Pressure test all lines to 5,000 psi. Test ROPE. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC PI Jim Regg waived witnessing BOPE test. Pull and lay down test joint and plug. (8.5 hrs) Clean suction pits, Repair agitator. Clean out suction line to mix hopper and line to mud pumps. (4.5 hrs) Slip & Cut 100' drilling line. (1 hrs) Build up mud volume in pits. Weight up surface volume to 9.0 ppg. Fill hole with 187 bbls of mud. (4 hrs) Run in the hole from 7,437' to 9,738'. Fill hole with 95 bbls of mud. (2 hrs) Make up top drive. Break circulation. Wash and ream from 9,738' to 9,880'. Work drill string thru numerous tight spots and packoffs. Run in the hole to bottom at 9,880'. (2 hrs) Drill from 9,880 ft to 9,900 ft. Drill 9-7/8" open hole section. Fluid loss rate at 50-70 bph. BHT = 129 Printed: 12:06 15 -Oct -10 Kimesase V- Printed: 12:06 15 -Oct -10 R/MBase rage: uv or ya Well Summary Report knek Electric Association, Inc. ,�N`�;�, Well ID: G-1 Well name: G-11 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough deg. (2 hrs) Comments: Mud Data: MW: 9 Viscosity: 38 Filtrate: 9 Surveys: None Daily Costs ($): 25,156 Well Costs ($): 14,639,850 Drilling Days: 201 Completion Days: 0 Workover Days: 0 06 -Mar -10 Current Depth (ft): 10,190 Hole Drilled (ft): 290 Ave ROP: 10.0 Current Ops: Continue to Drill 9-7/8" open hole section.Monitor wellbore losses. Mix and pump hi -vis sweeps every 90'. Operation Summary: Drill from 9,900 ft to 10,190 ft. Drill 9-7/8" open hole section. Fluid loss rate at 50-60 bph. Mix and pump hi -vis sweeps every 90'. Maintain MW at 8.9 ppg. No fill on connections. BHT = 133.8 deg. (24 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 38 Filtrate: 10 Surveys: None Daily Costs ($): 36,283 Well Costs ($): 14,676,140 Drilling Days: 202 Completion Days: 0 Workover Days: 0 06 -Mar -10 Current Depth (ft): 10,324 Hole Drilled (ft): 134 Ave ROP: 12.1 Current Ops: Build surface volume in mud pits. Weight up mud system to 8.9 ppg. Operation Summary: Drill from 10,190 ft to 10,324 ft. Drill 9-7/8" open hole section. MWD tool quit working at 10,270'. Fluid loss rate at 50-60 bph. Continue to maintain 8.9 MW. Mix and pump hi -vis sweeps every 90'. ROP drop to less than 10' fph. Stop drilling. (10 hrs) Pull out of hole from 10,324' to surface. At BHA. Static fluid loss rate at 30-40 bph. (6 hrs) Observed damage to BHA. Break out and lay down bit & BHA. Slightly bent NMDC, connection between pulsar and MWD collar. Wash out between stabilizer and mud motor. Undergauge bit & Stablizer. Lay down all damaged tools. (2 hrs) Pick up and make up new 9-7/8" Bit, NMDC, Mud Motor, and MWD Tool. Run in the hole to 162'. Static fluid losses at 30-40 bph. Stop tripping in the hole to build surface mud volume in pits. (5 hrs) Mix and build surface volume in mud pits. Weight up mud to 8.9 ppg. (1 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 36 Filtrate: 10 Surveys: None Daily Costs ($): 33,801 Well Costs ($): 14,709,940 Drilling Days: 203 Completion Days: 0 Workover Days: 0 07 -Mar -10 Current Depth (ft): 10,374 Hole Drilled (ft): 50 Ave ROP: 13.4 Current Ops: Drilling 9-7/8" open hole section. Continue to monitor fluid losses. Operation Summary: Build surface mud volume in Pits. Weight up mud system to 8.9 ppg. (5 hrs) Run in the hole with BHA to 1,200'. Shallow test MWD Tool, OK. (2 hrs) Repair slipping clutch spacer on drawworks engine #3. (1 hrs) Run in the hole with drill pipe. Picking up singles from pipe rack. Toolpusher discovered wrong drill pipe was picked up. (1 hrs) Pull out of the hole and lay down drill pipe. (1 hrs) Seperate out correct drill pipe. Drift, strap, and caliper new drill pipe. (1 hrs) Run in the hole picking up drill pipe off pipe rack. Trip in the hole to 2,906'. (1 hrs) Printed: 12:06 15 -Oct -10 R/MBase rage: uv or ya 0 Printed: 12:06 15 -Oct -10 R/MBase rage: a 1 or yo Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Mame: G-1 -•.• Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Run in the hole from 2,906' to 6,300'. Make up top drive. Break circulation. Use 175 bbls of mud to fill the hole. Blow down top drive. (2 hrs) Run in the hole from 6.300' to 8,400'. Make up top drive. Break circulation. Use 55 bbls of mud to fill the hole. Blow down top drive. (1 hrs) Run in the hole from 8,400' to 9,834'. Tag up. Make up top drive. Break circulation. (1 hrs) Wash & Ream 9-7/8" open hole section from 9,834' to 10,324'. Replace damaged joint of drill pipe , #300. (3 hrs) Drill from 10,324 ft to 10,374 ft. Drill 9-7/8" open hole section. Fluid losses at 50-60 bph. Avg. ROP = 10 fph. BHT = 131.1 deg. (5 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 36 Filtrate: 9.5 Surveys: None Daily Costs ($): 39,782 Well Costs ($): 14,749,720 Drilling Days: 204 Completion Days: 0 Workover Days: 0 08 -Mar -10 Current Depth (ft): 10,565 Hole Drilled (ft): 191 Ave ROP: 10.0 Current Ops: Drilling 9-7/8" Open hole section. Monitor fluid losses. Operation Summary: Drill from 10,374 ft to 10,565 ft. Drill 9-7/8" open hole section. Service rig and top drive at kelly down. Fluid losses at 30-50 bph. Avg. ROP 9-11 fph. BHT = 141.9 deg. Maintain 8.9 MW while drilling. Maintain directional well path as per plan. (24 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 36 Filtrate: 9.5 Surveys: None Daily Costs ($): 105,777 Well Costs ($): 14,855,500 Drilling Days: 205 Completion Days: 0 Workover Days: 0 09 -Mar -10 Current Depth (ft): 10,787 Hole Drilled (ft): 222 Ave ROP: 8.0 Current Ops: Drilling 9-7/8" Open hole section. Monitor fluid losses. Operation Summary: Drill from 10,565 ft to 10,787 ft. Drill 9-7/8" open hole section. Service rig and top drive at kelly down. Fluid losses at 30-50 bph. Avg. ROP 9-11 fph. BHT = 144.6 deg. Maintain 8.9 MW while drilling. Maintain directional well path as per plan. (24 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 36 Filtrate: 8.8 Surveys: None Daily Costs ($): 33,567 Well Costs ($): 14,889,060 Drilling Days: 206 Completion Days: 0 Workover Days: 0 10 -Mar -10 Current Depth (ft): 10,993 Hole Drilled (ft): 206 Ave ROP: 9.3 Current Ops: Drilling 9-7/8" Open hole section. Monitor fluid losses. Operation Summary: Drill from 10,787 ft to 10,992 ft. Drill 9-7/8" open hole section. Service rig and top drive at kelly down. Fluid losses at 30-50 bph. Avg. ROP 9-11 fph. BHT = 147.3 deg. Maintain 8.9 MW while drilling. Maintain directional well path as per plan. (24 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 37 Filtrate: 8.4 Surveys: 7760ft - 8.52 deg Inc, 201.61 deg Az; 7852ft - 9 deg Inc, 197.31 deg Az; 7950ft - 10.1 deg Inc, 184.32 deg Az; 8040ft - 9.65 deg Inc, 174.53 deg Az; 8132ft - 9.23 deg Inc, Printed: 12:06 15 -Oct -10 R/MBase rage: a 1 or yo • • Well Summary Report knek Electric Association, Inc. Well ID: G -t Well Name: G-7 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 159.12 deg Az; 8227ft - 9.64 deg Inc, 160.9 deg Az; 8321ft - 9.08 deg Inc, 158.32 deg Az; 8416ft - 9.42 deg Inc, 156.98 deg Az; 851 lift - 8.79 deg Inc, 159.77 deg Az; 8605ft - 8.16 deg Inc, 157.6 deg Az; 8698ft - 8.83 deg Inc, 160.2 deg Az; 8794ft - 8.4 deg Inc, 160.36 deg Az; 8888ft - 7.93 deg Inc, 160.38 deg Az; 8982ft - 7.75 deg Inc, 159.42 deg Az; 9078ft - 7.16 deg Inc, 160.78 deg Az; 9172ft - 6.74 deg Inc, 158.95 deg Az; 9265ft - 8.66 deg Inc, 158.46 deg Az; 9361ft - 8.26 deg Inc, 158.09 deg Az; 9455ft - 8.37 deg Inc, 164.94 deg Az; 9549ft - 7.76 deg Inc, 161.67 deg Az; 9651ft - 7.68 deg Inc, 158.75 deg Az; 9743ft - 7.47 deg Inc, 158.33 deg Az; 9839ft - 7.91 deg Inc, 155.74 deg Az; 9933ft - 8.43 deg Inc, 154.69 deg Az; 10028ft - 8.12 deg Inc, 153.1 deg Az; 10123ft - 7.84 deg Inc, 154.83 deg Az; 10221ft - 7.64 deg Inc, 158.24 deg Az; 10316ft - 8.07 deg Inc, 162.5 deg Az; 1041 Oft - 8.17 deg Inc, 163.41 deg Az; 10504ft - 8.67 deg Inc, 162.76 deg Az; 10597ft - 7.99 deg Inc, 160.11 deg Az; 10692ft - 8.05 deg Inc, 158.58 deg Az; 10784ft - 7.6 deg Inc, 154.11 deg Az; 10880ft - 7.39 deg Inc, 154.3 deg Az; Daily Costs ($): 35,002 Well Costs ($): 14,924,070 Drilling Days: 207 Completion Days: 0 Workover Days: u 11 -Mar -10 I Current Depth (ft): 11,000 Hole Drilled (ft): 7 Ave ROP: 8.6 Current Ops: Preparing to run in the hole with new 9-7/8" Bit and BHA. Operation Summary: Drill from 10,993 ft to 11,000 ft. Drill 9-7/8" Open hole section. ROP less than 8 fph. Decision made to pull drill string to change bit. Fluid loss rate less than 30 bph. BHT = 147.3 deg. (1 hrs) Circulate and condition mud. Mix and pump hi -vis sweep to clean up hole. (1 hrs) Pull out of hole from 11,000'. Work thru tight hole sections 10,742' to 10,649', 10,555' to 10,081', and 8,102' to 7,912'. Continue pulling drill string to BHA at 626'. (8 hrs) Stand back BHA. Break off and grade 9-7/8" drill bit. Pull rotary table bushings. (2 hrs) Repair load cell on rig floor tongs. (1 hrs) Make up new 9-7/8" Bit, mud motor, and new MWD Tool. Scribe and orient BHA. (2 hrs) Run GFLIT on slickline. Top of fluid level in 16" casing at 239'. This about 60 bbls of volume. (1 hrs) Run in the hole with BHA to 724'. (1 hrs) Pick up and make up BOPE test joint and set 13-5/8" test plug. (1 hrs) Held PJSM with all crew members on testing BOPE. R/U test lines to pump unit. Pressure test all lines to 5,000 psi. Test BOPE. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC PI Jim Regg waived witnessing BOPE test. Pull and lay down test joint and plug. (6 hrs) Comments: Mud Data: MW: 8.9 Viscosity: 38 Filtrate: 8.6 Surveys: None Daily Costs ($): 28,675 Well Costs ($): 14,952,740 Drilling Days: 208 Completion Days: 0 Workover Days: 0 12 -Mar -10 I Current Depth (ft): 11,060 Hole Drilled (ft): 60 Ave ROP: 7.0 Current Ops: Drill 9-7/8" Open Hole Section. Monitor fluid losses. Operation Summary: Thaw out mud line. Blow down mud circulating system. Line up valves on wellhead and BOP stack for drilling. (2 hrs) Run in the hole with 9-7/8" drilling assembly from 724' to 1,330'. Make up top drive. Break circulation. Shallow test MWD tool, OK. Pump 115 bbls of mud to fill the hole. Blow down top drive. (1 hrs) Run in the hole with 9-7/8" drilling assembly from 1,330' to 5,079'. Fill Pipe. (2 hrs) Run in the hole with 9-7/8" drilling assembly from 5,079' to 7,534'. Fill Pipe. (2 hrs) Install RCD element. (1 hrs) Run in the hole with 9-7/8" drilling assembly from 7,534' to 10,400'. Tag up. Make up top drive. Break 12.06 15 -Oct -10 R/MBase Page: 82 of 98 -'-H • Well Summary Report Well ID: G-1 s .knek Electric Association, Inc. Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough circulation. Wash & Ream thru numerous tight hole with stall outs and packoff. Work drill string and clean up tight hole. Continue to wash & Ream to bottom at 11,000'. (9 hrs) Drill from 11,000 ft to 11,060 ft. Drill 9-7/8" open hole. Fluid loss rate at 20-30 bph. Last survey showed hole angle had dropped to 5.85 deg. Raised MW to 9.0 to improve hole stability. BHT = 144.6 deg. (7 hrs) Comments: Mud Data: MW: 9 Viscosity: 38 Filtrate: 8.2 Surveys: 10976ft - 5.85 deg Inc, 162.58 deg Az; Daily Costs ($): 54,538 Well Costs ($): 15,007,280 Drilling Days: 209 Completion Days: 0 Workover Days: 0 13 -Mar -10 I Current Depth (ft): 11,095 Hole Drilled (ft): 35 Ave ROP: 8.6 Current Ops: Build surface volume in mud pits. Weight up system to 9.2 ppg. Operation Summary: Drill from 11,060 ft to 11,095 ft. Drill 9-7/8" open hole section. Fluid loss rate at 20-30 bph. Lost 600 psi pump pressure. Check mud pumps and all surface equipment, OK. Decision made to pull drill string looking for washout. (3.5 hrs) Pull out of hole with drill string looking for washout. Back ream due to tight hole from 10,520' to 9,706'. Continue pulling drill string on elevators. Hole in good condition. Located washout in stand 30. Lay down damaged joint of drill pipe. Pull RCD element. Stand back drill collars. (10.5 hrs) Pull drill string to Bit. Inspect BHA, Ok Scribe and orient BHA. (1 hrs) Run in hole with BHA. Run in hole with drill collars. (1 hrs) Change out drilling jars. Install RCD element. (1 hrs) Pick up drill pipe off pipe rack. Run in the hole with 10 joints of drill pipe to 1,173'. (2 hrs) Slip and cut drilling line. (1 hrs) Day light savings time. (1 hrs) Drill 9-7/8" Open Hole Section. Monitor fluid losses. (3 hrs) Comments: Mud Data: MW: 9 Viscosity: 38 Filtrate: 8.2 Surveys: None Daily Costs ($): 29,640 Well Costs ($): 15,036,920 Drilling Days: 210 Completion Days: 0 Workover Days: 0 14 -Mar -10 I Current Depth (ft): 11,143 Hole Drilled (ft): 48 Ave ROP: 10.0 Current Ops: Drill 9-7/8" open hole section, slide with mud motor to build hole angle. Monitor fluid losses & maintain 9.2 ppg MW. Operation Summary: Build surface vol in mud pits. Weight up mud system to 9.2 ppg for hole stability. (3 hrs) Make up top drive. Break circulation and fill the hole (130 bbls). Shallow test MWD tool OK. Blow down top drive. (1 hrs) Run in the hole with 9-7/8" drilling assembly to 4,513'. Make up top drive, break circulation and fill the hole (51 bbls). Blow down top drive. (2 hrs) Run in the hole with 9-7/8" drilling assembly to 7,533'. Make up top drive, break circulation and fill the hole (50 bbls). Blow down top drive. (1 hrs) Run in the hole with 9-7/8" drilling assembly to 9801'. Tag up.Make up top drive, break circulation. (2 hrs) Wash & Ream from 9,801' to 11,095'. Work drill string thru numerous hi -torque and packoff spots. Work back thru tight spots at 10,782', 10,835', and 10,847'. Wash and ream to bottom. (8 hrs) Drill from 11,095 ft to 11,119 ft. Rotary drill 9-7/8" open hole section. Take survey at connection 5.69 deg of hole angle. Decision made to slide to build hole angle. Fluid loss at 20-25 bph. (2 hrs) Drill from 11,119 ft to 11,143 ft. Orient mud motor to high side. Slide to build hole angle. Mix and pump hi -vis sweep. Observed increase in cuttings at shaker when sweep returned to surface. Continue to Printed: 12:06 15 -Oct -10 R/MBase rage: u:s or au y , Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 '._-• Field: King Salman Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough mix and pump sweeps for hole cleaning. Fluid losses at 20-25 bph. BHT = 144 deg. (5 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 40 Filtrate: 7.2 Surveys: 11071ft - 5.69 deg Inc, 158.91 deg Az; Daily Costs ($): 31,200 Well Costs ($): 15,068,120 Drilling Days: 211 Completion Days: 0 Workover Days: 0 16 -Mar -10 Current Depth (ft): 11,214 Hole Drilled (ft): 71 Ave ROP: 6.9 Current Ops: Drilling 9-7/8" open hole section. Continue to monitor fluid losses. Operation Summary: Drill from 11,143 ft to 11,165 ft. Drill 9-7/8" open hole. Observed 800 psi pressure loss. Prepare to pull drill string looking for wash out. Fluid loss rate 20-25 bph. BHT = 144 deg. (3 hrs) Pull drill string from hole at 11,165' to 4,511' looking for wash out. Wash & Ream thru numerous stall outs and packofrs. Pull on elevators from 9,705' to 4,511'. Located washout on stand #40. Replaced wash out joint in drill string. (6 hrs) Make up top drive. Break circulation and shallow test MWD tool. OK. (0.5 hrs) Run in the hole on elevators from 4,511' to 10,012'. Tag up. Make up top drive. Wash & Ream from 10,012' to 11,165'. Work drill string thru numerous stall out and packoffs. Run in the hole to bottom at 11,165'. (9.5 hrs) Drill from 11,165 ft to 11,214 ft. Drill 9-7/8" open hole section. Fluid losses at 20-25 bph. Mix and pump sweep. Maintain 9.2 ppg MW. BHT = 147.3 deg. (5 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 38 Filtrate: 7.2 Surveys: 11 168f - 6.69 deg Inc, 171.93 deg Az; Daily Costs ($): 38,768 Well Costs ($): 15,106,890 Drilling Days: 212 Completion Days: 0 Workover Days: 0 16 -Mar -10 Current Depth (ft): 11,315 Hole Drilled (ft): 101 Ave ROP: 8.9 Current Ops: Preparing to change out mud motor and 9-7/8" bit. Operation Summary: Drill from 11,214 ft to 11,233 ft. Drill 9-7/8" Open hole section. Fluid losses at 20-30 bph. Maintain MW at 9.2 ppg. BHT = 147 deg. Take survey. Decision made to slide to build hole angle. (1 hrs) Drill from 11,233 ft to 11,248 ft. Slide with mud motor to build hole angle. ROP less than 7 fph. Fluid losses at 20-30 bhp. Maintain 9.2 ppg MW. (5 hrs) Drill from 11,248 ft to 11,315 ft. Rotary drill 9-7/8" open hole section. ROP less than 10 fph. Maintain 9.2 ppg MW. BHT = 155 deg. Take survey. 7.21 deg of hole angle. Decision made to slide to build more hole angle. (8 hrs) Attempt to slide 9-7/8" drilling assembly. Unable to make any progress. Observed 300 psi pressure loss. Check all surface equipment. Pressure loss appears to be downhole. (1 hrs) Pull out of hole from 11,315' back reaming to 10,178'. Continue pulling out of the hole from 10,178'to surface on elevators. At BHA. Observed several joints of 5" S-135 drillpipe that are bent. (9 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 40 Filtrate: 7 Surveys: 11261 ft - 7.21 deg Inc, 173.67 deg Az; Daily Costs ($): 33,336 Well Costs ($): 15,140,220 Drilling Days: 213 Completion Days: 0 Workover Days: 0 17 -Mar -10 Current Depth (ft): 11,333 Hole Drilled (ft): 18 Ave ROP: 6.7 Current Ops: Drilling 9-7/8" open hole section. Monitor Fluid losses. Operation Summary: Printed. 12:06 15 -Oct -10 R/MBase rage: 64 or Yd AL1 Well Summary Report .knek Electric Association, Inc. Nrl' Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17$ Rng: 44W County: Bristol Bay Borough Pull BHA out of hole. Located wash out in drill collars, Box & Pin area. (2 hrs) Break out and lay down drill collars with wash out. (1 hrs) Break off bit, lay down mud motor, stabilizer, MWD tool and Pony Collar. (1 hrs) Clear rig floor, Service top drive & rig. Prepare to pick up new BHA. (1 hrs) Make up new 9-7/8" bit, mud motor, MWD tool, (1 hrs) Make up BHA, Pony collar, drill collars, & Jars. Run in the hole to 629'. (2 hrs) Run in the hole with new 9-7/8" drilling assembly to 1,200'. Install RCD element. (1 hrs) Change out saver sub on top drive. Adjust top drive track. (1 hrs) Make up top drive. Break circulation. Fill hole. (130 bbls). Circulate and shallow test MWD tool. (1 hrs) Run in the hole with new 9-7/8" drilling assembly. Fill the hole at 4,853', 50 bbls. Adjust drawworks brakes. Tag up on tight spot at 8,015. Wash & ream thru tight spot. (5 hrs) Run in the hole with new 9-7/8" drilling assembly. Wash & Ream thru tight hole sections from 9,756' to 10,217', 10,825' to 10,832', 11,285' to 11,315, T of fill on bottom. (5 hrs) Drill from 11,315 ft to 11,333 ft. Drill new 9-7/8" open hole section. Fluid loss rate at 40-50 bph. e Maintain 9.2 ppg MW. BHT = 158 deg. (3 hrs) i Comments: Mud Data: MW: 9.2 Viscosity: 40 Filtrate: 7 Surveys: None Daily Costs ($): 29,048 Well Costs ($): 15,169,270 Drilling Days: 214 Completion Days: 0 Workover Days: 0 18-Mar-10 Current Depth (ft): 11,387 Hole Drilled (ft): 54 Ave ROP: 6.0 Current Ops: Washing and reaming in the hole. Current depth at 10,824'. Operation Summary:; Drill from 11,333 ft to 11,387 ft. Drill 9-7/8" Open hole section. Maintain 9.2 ppg MW. Fluid loss rate at 30-40 bph. BHT = 152 deg. Observed 400 psi pressure loss in drill string. Prepare to pull drill string looking for wash out. (5 hrs) Wash & back ream from 11,387' to 10,365'. Work drill string thru numerous stall out, packoffs, and overpulls. Continue looking for wash out in drill string. (6 hrs) Pull out of hole on elevators from 10,365' to 3,727'. Located wash out in drill string. Break out and lay down 2 jts of drill pipe. One joint had damaged hard banding. (3 hrs) Pick up and make up 2 jts of drill pipe. Make up top drive. Break circulation and test MWD tool, OK. Blow down top drive. Clear rig floor. (1 hrs) Run in the hole from 3,727' to 6,809'. (1 hrs) Make up top drive. Fill the hole(20 bbls). Service top drive and rig. Change out dies on top drive grabber. (1 hrs) Run in the hole from 6,809' to 10,824'. Start washing and reaming at 10,131'. Work thru numerous stall out, pack offs, and overpulls. (4 hrs) Drill string became stuck at 10,824'. Work drill string. Pack off and stall out while working pipe. Jar on drill string 4 times to regain pipe movement. Drill string free. Pull up to 10,771'. (2 hrs) Continue washing and reaming to bottom from 10,771' to 10,824'. Work thru numerous stall out, packoffs, and overpulls. (1 hrs) Comments: Mud Data: MW: 9.2 Viscosity: 42 Filtrate: 7 Surveys: 11330ft - 7.35 deg Inc, 170.35 deg Az; Daily Costs ($): 103,397 Well Costs ($): 15,272,670 Drilling Days: 215 Completion Days: 0 Workover Days: 0 19-Mar-10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: 10.8 Current Ops: Performing weekly BOPE test. Operation Summary: Printed: 12:06 15-Oct-10 R/MBase Page: 85 of 98 AL1 Well Summary Report .knek Electric Association, Inc. Well ICt: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Wash & Ream thru 9-7/8" Open hole section from 10,801' to 11,026'. Work thru numerous stall out, pack off and tight hole. Observed 400 psi pressure loss in circulating system. Check surface equipment, OK. (4 hrs) Pull out of hole looking for wash out from 11,026' to 10,116'. Wash and back ream thru numerous pack offs, stall outs, and overpulls. (1 hrs) Pull out of hole on elevators looking for wash out in drill string from 10,116' to 4,134'. Hole in good condition. Pulled thru window, OK. Located wash out in top of stand #37. Lay down 3 jts drill pipe. (4 hrs) Run in the hole to 4,984'. Prepare to lay down 78 jts of 5" G-105 drill pipe. (1 hrs) Pullout of hole on elevators, lay down 5" G-105 drill pipe from 4,984' to 2,526'. (4 hrs) Run in the hole picking up drill pipe from cat walk. Pick up 78 jts 5" S-135 drill pipe. Run in the hole to 4,999'. (4 hrs) Run in the hole with drill pipe from the derrick to 7,448'. (2 hrs) Slip & Cut 100' drilling line. (2 hrs) Pick up and make up BOPE test jt and 13-5/8" test plug. Set test plug in wellhead. Rig up lines to test pump in cellar. Fill BOP stack with test fluid. Line up valves for testing. (2 hrs) Comments: Mud Data: MW: 9.3 Viscosity: 41 Filtrate: 6.8 Surveys: None Daily Costs ($): 35,475 Well Costs ($): 15,308,140 Drilling Days: 216 Completion Days: 0 Workover Days: 20 -Mar -10 I Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in the hole back to bottom. Operation Summary: Held PJSM with all crew members on testing BOPE. R/U test lines to pump unit. Pressure test all lines to 5,000 psi. Test BOPE. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC PI Jim Regg waived witnessing BOPE test. Pull and lay down test joint and plug. (6 hrs) Clear rig floor. Blow down choke manifold. Set valves on choke and stack for drilling. (1 hrs) Make up top drive. Attempt to circulate. Drill string pressured up to 3,300 psi. Unable to circulate. Check all surface equipment. Appears drill string plugged off. (1 hrs) Pull out of the hole with plugged drill string from 7,448' to surface. Inspect BHA, mud motor seized up. (6 hrs) Break out bit & Mud motor. Lay down MWD tool & Mud motor. Pick up replacement mud motor. (1 hrs) Make up BHA. Scribe & orient BHA. Run in the hole. (1 hrs) Make up top drive. Break circulation and shallow test MWD tool. OK. Blow down top drive. (1 hrs) Run in the hole from 264' to 4,330'. Make up top drive. Break circulation. Fill the hole (200 bbls). Blow down top drive. (3 hrs) Run in the hole from 4,330' to 7,552'. Make up top drive. Break circulation. Fill the hole (68 bbis). (1 hrs) Service rig and top drive. Adjust drawworks brakes. Install RCD element. (1 hrs) Run in the hole from 7,552' to 10,045'. Spot ream thru tight spots at 8,009', 9,282', & 10,015'. Continue tripping in the hole to 10,190' at report time. (2 hrs) Comments: Mud Data: MW: 9.3 Viscosity: 43 Filtrate: 8 Surveys: None Daily Costs ($): 25,581 Well Costs ($): 15,333,720 Drilling Days: 217 Completion Days: 0 Workover Days: 12.06 15 -Oct -10 Page: 86 of 98 Well Summary Report knek Electric Association, Inc. N Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 21 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Lay down BHA. Out of hole. Operation Summary: Unable to move drill string. Drill string stuck at 10,338'. Work jars. Make numerous attempts to rotate or circulate. Regained pipe movement, rotation and circulation at 10,287'. (2 hrs) Wash & Ream from 10,287' to 10,660'. Work drill string thru numerous stall out, pack offs and overpulls. Work drill string thru several tight hole sections several times to clean up. Unable to work drill string past 10,660'. Unable to move drill string. Jar on drill pipe. Regained pipe movement. (13 hrs) Decision made to pull drill string. Back ream out of hole from 10,660' to 10,007'. Unable to rotate or circulate drill string. Continue to pull out of hole on elevators from 10,007' to surface. (9 hrs) Comments: Mud Data: MW: 9.35 Viscosity: 40 Filtrate: 8.2 Surveys: None Daily Costs ($): 41,501 Well Costs ($): 15,375,230 Drilling Days: 218 Completion Days: 0 Workover Days: 0 22 -Mar -10 I Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Waiting on machine shop work to change cutters on 9-7/8" Weatherford Hole Opener. Operation Summary: Pull BHA to surface. Brake down and lay out bit, mud motor, and MWD tool. Observed damage between bottom crossover sub to MWD tool. Box end of pony collar has galled threads. (2 hrs) Waiting on 9-7/8" Weatherford Bull Nose hole opener and roller reamer. Service rig and top drive. Change oil & filter on #1 generator. Clean drawworks and rig floor. Inspect top drive and derrick after heavy jaring operations. Load 7-5/8" casing on pipe rack. Pull off thread protectors on casing. Strap casing string for liner job. (10 hrs) Waiting on 9-7/8" Weatherford Bull Nose hole opener and roller reamer. Weatherford has tool at machine shop in Anch to change out roller cutters from mill tooth to insert. Build surface mud volume in pits. Raise concentration of gel to 7 ppb and maintain 9.3 ppg MW. Perform general housekeeping around rig and subbase. Clean up around mud mixing hopper. (12 hrs) Comments: Mud Data: MW: 9.3 Viscosity: 44 Filtrate: 8.2 Surveys: None Daily Costs ($): 26,401 Well Costs ($): 15,401,630 Drilling Days: 219 Completion Days: 0 Workover Days: 0 23 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Wash & Ream open hole section with 9-7/8" hole opener. Operation Summary: Waitng on 9-7/8" hole opener. Perform general housekeeping. Change oil in Mud pump # 1. Run fluid level indicator to 826'(166 bbls). Change oil in drawworks engine #2. Condition mud in pits. (15 hrs) Make up 9-7/8" Bullnose hole opener, drill collars, stab, & jars. Run in the hole with BHA. Install RCD element. (3 hrs) Run in the hole with 9-7/8" bullnose hole opener to 7,500'. Fill hole at 2,540' (175 bbls) and 7,500' (67 bbls). Make up top drive. Wash & ream down thru window. (6 hrs) Comments: Mud Data: MW: 9.35 Viscosity: 67 Filtrate: 6 Surveys: None Printed: 12:06 15 -Oct -10 R/MBase rage: di or va Printed: 12:06 15 -Oct -10 R/MBase rage: cru or au Well Summary Report knek Electric Association, Inc, N Well ID: G-1 Well Name: G-1 `N Field: King Salmon Sect: 14 Town: 175 Rng: 44W County: Bristol Bay Borough Daily Costs ($): 39,618 Well Costs ($): 15,441,240 Drilling Days: 220 Completion Days: 0 Workover Days: 0 24 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Service rig & top drive. Operation Summary: Run in the hole with 9-7/8" Hole opener. Tag up on tight hole at 8,066' Make up top drive. Start Washing & Reaming open hole section. (1 hrs) Wash & Ream open hole section with 9-7/8" hole opener from 8,066' to 10,295'. Unable to move drill string past 10,210'. Set off jars 4 x to regain pipe movement. Continue to wash & Ream. Drill string hung up at 10,295'. Set off jars numerous times to regain pipe movement. Decision made to pull out of hole to inspect BHA. (14 hrs) Pull out hole from 10,290' to surface. Pump out of hole from 10,290' to 9,321'. Pull out of hole on elevators from 9,321' to surface. Located wash out in steel drill collars. Stand back BHA. Hole opener inserts are slightly worn. (9 hrs) Comments: Mud Data: MW: 9.35 Viscosity: 53 Filtrate: 7 Surveys: None Daily Costs ($): 85,973 Well Costs ($): 15,527,220 Drilling Days: 221 Completion Days: 0 Workover Days: 0 25 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Wash and reaming thru tight hole sections with 9-7/8" Drilling Assembly. Operation Summary: Repair mud pump #2. Test run mud pump,OK (3 hrs) Make up BHA, Bit, NMDC, Stab, NMDC, Stab, NMDC, DC's Jars, DC's X0, DP, Run in the hole to 512'. (4 hrs) Run in the hole from 512' to 7,533'. Install RCD element. Fill hole at 3,746' (150 bbls) (5 hrs) Slip & cut 144' drilling line. Fill the hole (60 bbls) (2 hrs) Build surface mud volume in pits. (400 bbls) 9.35 ppg MW and 10 ppb gel. (4 hrs) Run in the hole from 7,533' to 7,933'. Tag up on tight hole. Make up top drive. Spot ream to 9,812'. Blow down top drive. (2 hrs) Run in the hole to 9,950' Tag up tight hole.Make up top drive. Wash & Ream from 9,950' to 10,280. Work thru numerous tight hole, stall out and pack offs. Continue washing and reaming. Fluid loss rate at 20-30 bph. (4 hrs) Comments: Mud Data: MW: 9.35 Viscosity: 41 Filtrate: 7 Surveys: None Daily Costs ($): 37,450 Well Costs ($): 15,564,670 Drilling Days: 222 Completion Days: 0 Workover Days: 0 26 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Makeup 9-7/8" BHA Operation Summary: Wash & Ream 9-7/8" open hole section from 10,266' to 10,315'. Work thru numerous tight hole, stall outs, and packoffs. Fluid loss rate at 20-30 bph. Unable to move drill string past 10,294'. Decision made to pull out of hole and change BHA. Back ream and pump out of hole to 10,288'. (17 hrs) Pull out of hole from 10,288' to surface. Work BHA. Lay down bent joint of drill pipe. Break out bit & BHA. Stabilizer showed slight OD damage. Service top drive & Rig. (7 hrs) Comments: Printed: 12:06 15 -Oct -10 R/MBase rage: cru or au Printed: 12:06 15 -Oct -10 R/MBase rage: 69 or av Well Summary Report knek Electric Association, Inc, ((l N Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Mud Data: MW: 9.35 Viscosity: 45 Filtrate: 8 Surveys: None Daily Costs ($): 27,030 Well Costs ($►: 15,591,700 Drilling Days: 223 Completion Days: 0 Workover Days: 0 27 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Washing and reaming 9-7/8" open hole section Operation Summary: M/U 9-7/8" BHA Assembly. RIH to 511'. Install RCD element. (3 hrs) Run in the hole to 7,500'. Fill pipe at 2,665'(112 bbls) (4 hrs) Held PJSM with all crew members on testing BOPE. R/U test lines to pump unit. Pressure test all lines to 5,000 psi. Test BOPE. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, IBOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC PI Jim Regg waived witnessing BOPE test. Pull and lay down test joint and plug. (8 hrs) Run in the hole from 7,500' to 10,300'. Tag up and wash and ream at 8,015', 8,089', 8,310', 9,922', 10,300'. Work thru numerous tight hole, pack offs, and stall out. (9 hrs) Comments: Mud Data: MW: 9.35 Viscosity: 47 Filtrate: 8 Surveys: None Daily Costs ($): 26,448 Well Costs ($): 15,618,150 Drilling Days: 224 Completion Days: 0 Workover Days: 0 28 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Washing and reaming 9-7/8" open hole section Operation Summary: Continue to wash and ream from 10,290' to 10,300'. Numerous pack off, overpulls, and stall outs. Jar on drill string numerous times to regain pipe movement. (24 hrs) Comments: Mud Data: MW: 9.45 Viscosity: 43 Filtrate: 8.2 Surveys: None Daily Costs ($): 21,961 Well Costs ($): 15,640,110 Drilling Days: 225 Completion Days: 0 Workover Days: 0 29 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Build surface mud volume. Operation Summary: Work jars at 10,280'. Regain pipe movement. (1 hrs) Pull out of hole to 7,500'. Stop to work on top drive. (2 hrs) Repair hydraulic on top drive unit. (3 hrs) Pull out of hole to BHA at 511'. (4 hrs) Lay down BHA & Bit. (1 hrs) M/U BHA & RR Bit 18. Run in the hole (2 hrs) Run in the hole to 7,500'. (5 hrs) Slip & Cut Drilling Line. (2 hrs) Buil mud volume. Maintain 9.5 MW. Fill hole (200 bbis) (4 hrs) Comments: Mud Data: MW: 9.5 Viscosity: 43 Filtrate: 7.8 Printed: 12:06 15 -Oct -10 R/MBase rage: 69 or av • ,N Well Summary Report knek Electric Association, Inc. Well It3: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 178 Rng: 44W County: Bristol Bay Borough Surveys: None Daily Costs ($): 23,874 Well Costs ($): 15,663,980 Drilling Days: 226 Completion Days: 0 Workover Days: 0 30 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Pull out of hole. Operation Summary: Build mud volume in pits. Work on top drive. Repair Clamp. (5 hrs) Run in the hole. Tag tight hole at 8,085. Wash & Ream from 8,085' to 10,310'. Fluid loss rate 16 bph. (7 hrs) Wash & Ream from 10,310' to 10,334'. Work tight hole with stall out, pack offs, and overpulls. (11.5 hrs) Pull out of hole from 10,334' to 9,896'. (0.5 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 42 Filtrate: 8.8 Surveys: None Daily Costs ($): 89,126 Well Costs ($): 15,753,110 Drilling Days: 227 Completion Days: 0 Workover Days: 0 31 -Mar -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Run in the hole with 8.5" clean out assembly. Operation Summary: Pullout of hole from 9,896' to 2,418'. (4 hrs) Repair makeup cathead. (1 hrs) Pull out of hole from 2,418' to 9,896'. At BHA. (1 hrs) Lay Down BHA (2 hrs) Change oil in Drawworks. Clean up subbase area. Work on cathead. (4 hrs) Waiting on Drilling Tools (7 hrs) M/U 8.5" Bit & BHA, run in the hole to 503' (2 hrs) Run in the hole from 503' to 5,160'. (3 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 56 Filtrate: 8.8 Surveys: None Daily Costs ($): 95,952 Well Costs ($): 15,849,060 Drilling Days: 228 Completion Days: 0 Workover Days: 0 01 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Wash & Ream 9-7/8" open hole with 8-1/2" BHA & Bit. Operation Summary: Run in the hole from 5,160'to 7,500'. (2 hrs) Build surface hole mud volume in pits. Maintain 9.55 MW. Fill the hole 215 bbls. (6 hrs) Wash and ream from 7900' to 10,334'. Numerous pack offs, stall outs, and overpulls. (16 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 65 Filtrate: 10 Surveys: None Daily Costs ($): 43,761 Well Costs ($): 15,892,820 Drilling Days: 229 Completion Days: 0 Workover Days: 0 Printed., 12:06 15-00-10 Himbase rage. au of ya • . Well Summary Report .knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough 02 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Wash & Ream 9-7/8" open hole with 8-1/2" BHA & Bit. Operation Summary: Wash & Ream from 10,334' to 10,372'. Numerous overpulls, stall outs, and packoffs. Fluid loss rate at 18 bph. (24 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 42 Filtrate: 6.8 Surveys: None Daily Costs ($): 25,848 Well Costs ($): 15,918,670 Drilling Days: 230 Completion Days: 0 Workover Days: 0 03 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Lay down 8-1/2" Bit & BHA. Operation Summary: Wash & Ream 9-7/8" open hole with 8-1/2" BHA & BIT. Numerous overpulls, packoffs, and stall outs. (14 hrs) Drill string hung up at 10,431'. Work drill string. Jar pipe free. Regain pipe movement. (1 hrs) Pull out of hole from 10,432. Back ream to 10,360. Pull out of hole on elevators to BHA. (9 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 41 Filtrate: 6.5 Surveys: None Daily Costs ($): 24,777 Well Costs ($): 15,943,440 Drilling Days: 231 Completion Days: 0 Workover Days: 0 04 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Wash & Ream 9-7/8" Open hole section. Operation Summary: Lay down 8-1/2" BHA & Bit. (1 hrs) M/U New 9-7/8" Bit & BHA with 9-7/8" roller reamer. Run in the hole to 519'. (3 hrs) Run in the hole from 519' to 7,500'. (4 hrs) Slip & Cut Drilling Line. (2.5 hrs) Held PJSM with all crew members on testing ROPE. R/U test lines to pump unit. Pressure test all lines to 5,000 psi. Test BOPE. Pressure test Annular 250/3,500 psi. Line up valves in choke house skid. Pressure test Upper kelly, lower kelly, floor, [BOP valves 250/4,500 psi. Pressure test upper pipe, lower pipe, and blind rams to 250/4,500 psi. Pressure test 14 choke manifold valves, 2 choke side, and 2 kill line valves to 250/4,500 psi. Function tests gas detectors and accumulator system. AOGCC PI Jim Regg waived witnessing BOPE test. Pull and lay down test joint and plug. (6.5 hrs) Make up top drive. Fill the hole (100 bbls). Install RCD element. (1 hrs) Wash & Ream '9-7/8" open hole section from 7,906' to 9,518'. (6 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 41 Filtrate: 6.6 Surveys: None Daily Costs ($): 19,883 Well Costs ($): 15,963,330 Drilling Days: 232 Completion Days: 0 Workover Days: 0 05 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Work stuck drill string. Operation Summary: Printed: 12:06 15 -Oct -10 RIMBase rage: y! or wo • • Printed: 12:06 15 -Oct -10 Himbase ragm UZ vav Well Summery Report knek Electric Association, Inc, Nom/ Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristoi'Bay Borough Wash & Ream 9-7/8" open hole from 9,518' to 10,651'. Fluid loss rate at 18-20 bph. Experienced numerous packoffs, overpulls, and stallouts. Drill string stuck at 10,631'. (21 hrs) Work stuck drill string at 10,631' to 10,622'. No pipe movement. (3 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 42 Filtrate: 6.5 Surveys: None Daily Costs ($): 22,913 Well Costs ($): 15,986,240 Drilling Days: 233 Completion Days: 0 Workover Days: 0 06 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Waiting on free point back off tools to free drill string. Operation Summary: Work stuck drill string at 10,600'. Attempt to free stuck drill string with overpulls, torque and slumping. Pressure up on drill string, no circulation. Make numerous attempts to free drill string. No pipe movement. Jars stop working at 2100 hrs. Stop jarring operations. (15 hrs) Wait on equipment. Baker Atlas, Alaska Pipe Recovery, and Baker Fishing have all been called out to perform free point back off operations. (9 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 42 Filtrate: 6.5 Surveys: None Daily Costs ($): 37,211 Well Costs ($): 16,023,450 Drilling Days: 234 Completion Days: 0 Workover Days: 0 07 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Circulate and condition mud. Mix and pump 40 bbl sweep. Operation Summary: Waiting on Free Point Tools and Personnel. Perform general houskeeping duties. (10 hrs) PJSM. Move in and rig up Baker Atlas a -line unit. APRS make up free point indicator tool string. (3 hrs) Run in hole with free point indicator tool. Make several stops to check free point on drill string. FPI shows drill string stuck at 10510'. Drill string free at 10,477'. Pull out of hole and lay down FPI. (4 hrs) Make up 720 gr string shot. Run in the hole to 10,475'. Locate string shot across tool joint. Put 7 left hand turns into srill string at 15K torque. Fire string shot. Surface indications string has back off. Pull out of hole with a -line to surface. (4 hrs) Make up top drive and continue to back off drill string with left hand turns until free. (1.5 hrs) Pull out of hole. Attempt to circulate. Drill string still plugged off. Pulling tight with 120k overpulls. Pull 4 stands drill pipe when hole cleaned up at 10,300'. Make up top drive. Break circulation. Hole took 140 bbls of mud to get returns to surface. Circulate bottoms up. (1.5 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 40 Filtrate: 6.5 Surveys: None Daily Costs ($): 19,883 Well Costs ($): 16,043,330 Drilling Days: 235 Completion Days: 0 Workover Days: 0 08 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Pull out of hole with shot off string, lay down drilling jars, lay down shot off drill collars. Pick up and made up 9-7/8" re -rerun bit, run into window with slick assembly and built mud volume. Operation Summary: Circulate to bottoms up, total circulation 13,297 strokes (2.5 hrs) Printed: 12:06 15 -Oct -10 Himbase ragm UZ vav • Well Summary Report .knek Electric Association, Inc. N Well ID: G-'1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough POOH to surface, layed down and c/o drilling jars, laid down and c/o 6-1/2" drill collar string shot was set. (6.5 hrs) Pick up and make up rerun 9-7/8" bit, bit sub, x -over, RIH with slick assembly to 7,231'. Filled pipe at 5,000'. (4.5 hrs) Building mud volume to 1,100 bbls, filled hole - 68 bbls to fill. (5.5 hrs) RIH from 7,231' to 10,326', Tagging at 10,326'. Picked up high and established circulation. (2 hrs) Reamed from 8,745' to 10,326', encountered high torque and pump pressure increase, picked up above 10,315' and worked back into tight spot at 10,319', once breaking through 10,319' encountered 10% flow increase, monitored and continued reaming. (3 hrs) Comments: Mud Data: MW: 9.55 Viscosity: 40 Filtrate: 6.5 Surveys: None Daily Costs ($): 19,883 Well Costs ($): 16,063,220 Drilling Days: 236 Completion Days: 0 Workover Days: 0 09 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: Make 9 7/8 clean out run with slick assembly we tagged @ 10326' we will clean out to top of fish @ 10480 +/- . currently running 10 ppg mud weight Operation Summary: Ream F/10317 T/10324 (1.5 hrs) POOH F/10324 T/7335 Due to top drive repair (average drag 28k over max 75k over pulled 75k over @ 8051) (2 hrs) Repair top drive inside window (I.B.O.P. RAM & I.B.O.P. ACTUATORS) Service top drive, adjust brakes,inspect derrick, (1.5 hrs) Cond mud weight in active pitt to 9.8 ppg fill hole hole took 57 bbis to fill (2.5 hrs) RIH F/7335 T/7805 took weight @ 7805 (0.5 hrs) Spot Ream F/7805 T/7899 (0.5 hrs) RIH F/7899 T/10319' (1.5 hrs) Ream F/10319 T/10427' (Tight spot F/10330 T/10351) (14 hrs) Comments: We are down to 1 pallet of barite this morning, we should be recieving 7 pallets of barite today to maintain our 10 ppg mud weight. We have been making connections on a 1/3 of D.P. so if anything is to happen during a connection we have room to work with string. Mud Data: MW: 10 Viscosity: 40 Filtrate: 7.4 Surveys: None Daily Costs ($): 26,633 Well Costs ($): 16,089,850 Drilling Days: 237 Completion Days: 0 Workover Days: 0 10 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: Circ & conditioning mud, we made wiper trip @ top of fish we circ a sweep around & we will be spotting a pill in the open hole section, and POOH for fishing assembly Operation Summary: Ream F/10427 T/10477' tagged fish (5.5 hrs) Circ & cond mud to a 10.0 ppg pump sweep & continue building mud system to a 10.0 ppg & 43 visc (3.5 hrs) POOH F/10477 T/7519' pulled tight @ 8811 75 k over (1 hrs) Back Ream F/8811 T/8747 (0.5 hrs) POOH F/8747 T/7519 (0.5 hrs) Cond & build 400 bbls to 10.0 ppg fill hole took 68 bbls to fill (7 hrs) RIH F/7522 T/10300 took weight (1 hrs) Ream F/10300 T/10477 tag top offish (3 hrs) Circ bottms up (back ream F/10477 T/10445) (2 hrs) Comments: Reaming wasn't near as bad or agressive as prior reaming trips. I feel confident we will Prinleri. 19.08 1 .r�nrt-10 R/MBase 93 of 98 • • 'N. ", 4, Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name. G-1 ` Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough make it to the fish with fishing assembly Mud Data: MW: 10 Viscosity: 58 Filtrate: 5.8 Surveys: None Daily Costs ($): 35,798 Well Costs ($): 16,125,650 Drilling Days: 238 Completion Days: 0 Workover Days: 0 11-Apr40 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: Jarring on stuck string @ 10,477 Operation Summary: Circ & cond mud spot pill w/3,795 strks (1.5 hrs) POOH F/10475 T/SURFACE L/DN 9.875 CLEAN OUT ASSEMBLY & P/U FISHING TOOL ASSEMBLY & RIH F/SURFACE T/7554 (9 hrs) BUILD VOLUME & COND MUD FILL HOLE (TOOK 136 BBLS) (2.5 hrs) RIH T/ 10477 & SCREWED INTO FISH @ 10478 (2 hrs) JAR ON STUCK PIPE @ 10,477 (9 hrs) Comments: Mud Data: MW: 10 Viscosity: 47 Filtrate: 5.5 Surveys: None Daily Costs ($): 58,639 Well Costs ($): 16,184,290 Drilling Days: 239 Completion Days: 0 Workover Days: 0 12 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: Testing B.O.P's Operation Summary: Jarring on fish (Max pull 500k) Screw off of fish (5.5 hrs) Circ, full circ, pump sweep and chase with 13,300 strks (2.5 hrs) POOH F/10478 T/ surface lay down fishing tools (no screw in sub) from the window to surface check every connection on the way out (8 hrs) Pick up & make up 9 7/8 slick assembly & RIH T/6675 (3 hrs) Test B.O.P's (5 hrs) Comments: When we unscrewed off of fish we POOH we unscrewed off the top of the screw in sub. Screw in sub left in the hole. Mud Data: MW: 10 Viscosity: 45 Filtrate: 5.5 Surveys: None Daily Costs ($): 24,939 Well Costs ($): 16,209,230 Drilling Days: 240 Completion Days: 0 Workover Days: 0 13 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): 0 Ave ROP: Current Ops: Circ Hole Clean Pumping Sweep, We will spot a high polymer pill in open hole section prior to pulling out of hole. Operation Summary: Test BOP&E blow down choke and choke lines (5.5 hrs) Slip & cut 144' of drilling line (2.5 hrs) RIH F/6675 T/6769 (install RCD) (1 hrs) Fill hole (pumped 205 bbls) hole still not full continue to trip in the hole (1 hrs) RIH F/6769 T/8777 Tag tight spot 15K (1.5 hrs) Ream F/8748 T/8841 (0.5 hrs) RIH F/8841 T/10351 (1 hrs) Ream F/10351 T/10475 (top of fish) (3 hrs) Printed. 12:06 15 -Oct -10 HIMbase rdya: y -f v1 mo Well Summary Report ,knek Electric Association, Inc. ` Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Circ and pump sweep (pumpsweep back to surface 13,272 strks) (2 hrs) POOH F/10475 T/7552 sery rig and clean up floor (2 hrs) RIH F/7552 T/9166 tag tight spot 15k (1.5 hrs) Ream F/9166 T/9196 (0.5 hrs) RIH F/9196 T/10395 (0.5 hrs) Ream F/10395 T/10475 (top of fish) (1.5 hrs) Comments: We also kept the hole full during trip and we will keep well bore full while tripping out to run liner to try and keep open hole section full of mud and keep our hydrostatic head up and keep well bore from falling in on us Mud Data: MW: 10 Viscosity: 55 Filtrate: 5.2 Surveys: None Daily Costs ($): 28,948 Well Costs ($): 16,238,170 Drilling Days: 241 Completion Days: 0 Workover Days: 0 14 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: Circ Bottms up & will be POOH To run 7 5/8 liner Operation Summary: HSM W/ CREW CIRC & PUMP SWEEP CHASE WITH 13,300 STRKS & SPOT PILL WITH 3800 STRKS (2.5 hrs) POOH F/10475 T/SURFACE UDN 9 7/8 CLEAN OUT ASSEMBLY (5 hrs) R/UP T/ RUN 7 5/8 LINER SHOE WOULD NOT MAKE UP (BANANA PEAL & WELD ON. CHECK CROSSOVER CROSSOVER WOULD NOT MAKE UP. R/DN TONG & EQUIP. (5.5 hrs) P/U & M/U 9 7/8 BHA & RIH TO 7428 (INSTALL RCD) (3 hrs) BUILD VOLUME & COND. MUD (FILL PIPE 180 BBLS TO FILL) (4 hrs) RIH F/7428 T/10371 (TOOK 10 K TO PUSH THRU) (1.5 hrs) REAM F/10371 T/10475 (1.5 hrs) CIRC BOTTMS UP & PUMP SWEEP (13272 STRKS) (1 hrs) Comments: The correct crossover is being built @ unique machine in anchorage, we should have this evening. So we made another clean out run, also on the clean out run we only hit one spot @ 10371 in took 10k to push thru. We sfty reamed to bottm. Mud Data: MW: 10 Viscosity: 50 Filtrate: 5 Surveys: None Daily Costs ($): 29,262 Well Costs ($): 16,267,440 Drilling Days: 242 Completion Days: 0 Workover Days: 0 15 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: SETTING LINER HANGER @ 10,433 Operation Summary: HSM W/ CREW CIRC. BOTTMS UP & SPOT PILL W/15,800 STRKS (1.5 hrs) POOH F/10475 T/SURFACE (5.5 hrs) RIG UP & RUN 7 5/8 LINER, P/U & M/U LINER HANGAR (BREAK CIRC. & INSTALL R.C.D.) ADJUST BRAKES (12 hrs) RIH W/ LINER HANGER T/ 10433 (TOOK 100K) (3 hrs) DROP BALL @ 10433' (1 hrs) ATTEMPT TO PUMP ON BALL (PRIME MUD PUMPS) (1 hrs) Comments: SET 7 5/8 LINER @ 10,433 Mud Data: MW: 10 Viscosity: 52 Filtrate: 5 Surveys: None Printed: 12:06 15 -Oct -10 R/Mtiase r-dyc. VU vi VO N �1 s� Well Summary Report knek Electric Association, Inc. Well ID: G-1 Well Name: G-1 - ' Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Daily Costs ($): 22,200 Well Costs ($): 16,289,640 Drilling Days: 243 Completion Days: 0 Workover Days: 0 16 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: RIH W/ 6 3/4 BIT CLEANED OUT LANDING COLLAR @ 7378 D.P. MEASUREMENT. CONTINUE TO TRIP IN THE HOLE TO CHANGE HOLE OVER TO FRESH WATER Operation Summary: HSM W/ CREW SHEARED BALL SEAT @ 3277 PSI - RELEASE RUNNING TOOL WITH 25 ROUNDS - SET PACKER WITH 120K SHEARED @ 60 TO 80K (1 hrs) REPAIR M.P. 1 & 2 / TEST LINER TO 1000 PSI & HLD 5 MIN (GOOD) (1 hrs) POOH & STAND BACK 39 STDS @ U DN THE REMAINING 5" D.P. REMOVE R.C.D. & UDN THE LAST 10 JOINTS OF 5" CLEAR RACKS OF SAME P/U 6 3/4 BHA & RIH T/277 (9.5 hrs) SERV. RIG & T.D. (0.5 hrs) HSM W/ CREW SERV, RIG & T.D. (0.5 hrs) PICK UP 4" D.P. TO 3269 CROSS OVER TO 5" & RIH TAG LANDING COLLAR @ 7378 D.P. MEASUREMENT. (9.5 hrs) CLEAN OUT LANDING COLLAR @ 7378 D.P. MEASUREMENT (1 hrs) RIH F/7430 T/9567 (1 hrs) Comments: CLEAN OUT LANDING COLLAR WITH 6 3/4 BIT & CHANGE HOLE OVER TO FRESH WATER Mud Data: None Surveys: None Daily Costs ($): 32,850 Well Costs ($): 16,322,490 Drilling Days: 243 Completion Days: 1 Workover Days: 0 17 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: Change hole over to water, POOH & shut in well (wait on air compressor) Operation Summary: HSM W/ CREW RIH F/9729 T/10433 TAG SHOR P/U 5' (1 hrs) CHANGED HOLE OVER TO WATER WE PUMPED 2 SWEEPS & WE CIRC 2 FULL VOLUMES FROM SURFACE TO SURFACE. WE FILLED BOTH BAKER TANKS WITH MUD AND FILLED THE REST OF THE DIRTY WATER SUMP (11 hrs) HSM W/ CREW POOH F/10433 T/SURFACE BREAK OUT & L/DN 6 3/4 BIT & BIT SUB (6 hrs) RIH OPEN ENDED T/759' (CLEAR RIG FLOOR) STAB F.O.S.V. & SHUT IN WELL (WAIT ON COMPRESSOR) (2 hrs) WAIT ON AIR COMPRESSOR - R/DN WINTERIZEING AROUND SHAKERS, MOVE MUD MATERIAL TO STORAGE PAD,CHANGE OIL ON ALL 3 D.W. ENGINE TORQ CONVERTERS, CLEAN OUT POSSUM BELLY, HOUSEKEEPING (4 hrs) Comments: change hole over to water Mud Data: MW: Viscosity: Filtrate: Surveys: None Daily Costs ($): 25,641 Well Costs ($): 16,348,130 Drilling Days: 243 Completion Days: 2 Workover Days: 0 18 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: LIFT WELL USING AIR COMPRESSOR @ 632' WITH OPEN ENDED DRILL PIPE Operation Summary: WAIT ON AIR COMPRESSOR (CONTINUE HOUSE KEEPING) (5 hrs) FLOW WELL WITH AIR EVERY TWO HOURS @ 632' (WELL IS BUILD A HEAD OF 252' EVERY TWO HOURS) WE ALSO TRYED A REVERSE CIRCULATION. (NO GOOD) NEED BIGGER AIR COMPRESSER (19 hrs) Printed: 12:06 15 -Oct -10 RIMBase rage: yo or as Printed: 12:06 15 -Oct -10 RIMBase rage: a/ or yo Well Summary Report knek Electric Association, Inc, N Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough Comments: FLOWING WELL Mud Data: None Surveys: None Daily Costs ($): 18,550 Well Costs ($): 16,366,680 Drilling Days: 243 Completion Days: 3 Workover Days: 0 19 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: POOH AFTER CIRC WELL BORE TO FRESH WATER AND WILL ATTEMPT TO FLOW WELL Operation Summary: LIFT WELL WITH AIR EVERY TWO HOURS. (6.5 hrs) POOH WITH OPEN ENDED DRILL PIPE. (0.5 hrs) P/U & M/U 6 3/4 CLEAN OUT ASSEMBLY & TRIP IN THE HOLE (FILL PIPE @ 5,000') FILL PIPE PRESS UP (TROUBLE SHOOT AT SURFACE)PULL UP TO 10408 ESTABLISH CIRC. (7 hrs) CIRC DIRTY WATER OUT OF HOLE DISPLACED A TOTAL OF 1,008 BBLS (6 hrs) POOH F/10408 T/SURFACE (DID NOT FILL HOLE ON THE WAY OUT) CHECK WATER TABLE 310' (4 hrs) Comments: CHANGE HOLE OVER TO WATER AND ATTEMPT TO FLOW WELL Mud Data: None Surveys: None Daily Costs ($): 18,380 Well Costs ($): 16,385,060 Drilling Days: 243 Completion Days: 4 Workover Days: 0 20 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: CIRC CLEAN WITH FRESH WATER Operation Summary: STIMULAT WELL WITH AIR ASSIST. (6 hrs) TEST B.O.P'S (GOOD TEST) (6 hrs) CHECK FLUID LEVEL @348' (LINE OUT ALL SURFACE VAVES) (1 hrs) P/UP & M/UP 6 3/4 NHA AND RIH (FILL PIPE @ 5000') RIH T/ 10355 (5 hrs) FILL PIPE BREAK CIRC 115 BBLS +/- T/FILL PIPE & HOLE (1 hrs) WASH DOWN F/10355 T/10433 & DRILL OUT SHOE PLUS 10' OF OPEN HOLE (2 hrs) CIRC BOTTMS UP WITH FRESH WATER (3 hrs) Comments: WHEN WE DRILLED OUT THE SHOE DEBREE DID FALL IN ON US WE PULLED 50K OVER TO GET OUT OF IT. ONCE WE GOT BACK ON TOP OF IT WE STAYED ON TOP OF IT AND CIRC BOTTMS UP Mud Data: None Surveys: None Daily Costs ($): 18,441 Well Costs ($): 16,403,500 Drilling Days: 243 Completion Days: 5 Workover Days: 0 21 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: POOH F/10433 TO 4" & L/DN 4" D.P. Operation Summary: circ bottms up w/ fresh water (1.5 hrs) POOH F/10425 T/ SURFACE (4 hrs) MONITOR WELL FLUID LEVEL @ 327, 316, 295', 283' (4 hrs) RIH F/SURFACE T/7600' WITH DRAIN SUB (4.5 hrs) WASH / REAM 7 5/8 LINER F/7600 T/10433 (8 hrs) Printed: 12:06 15 -Oct -10 RIMBase rage: a/ or yo Nom. Well Summary Report knek Electric Association, Inc. f� H Well ID: G-1 Well Name: G-1 Field: King Salmon Sect: 14 Town: 17S Rng: 44W County: Bristol Bay Borough. BACK REAM & WASH 7 5/8 LINER F/10433 T/9000' (2 hrs) Comments: RIH WITH WASHING TOOL Mud Data: None Surveys: None Daily Costs ($): 17,599 Well Costs ($): 16,421,100 Drilling Days: 243 Completion Days: 6 Workover Days: 0 22 -Apr -10 Current Depth (ft): 11,387 Hole Drilled (ft): Ave ROP: Current Ops: MONITOR WELL CHECKING FLUID LEVEL EVERY HOUR Operation Summary: POOH F/9000 T/SURFACE L/DN 4" D.P. & TOOLS (8 hrs) MONITOR WELL RAN MRT 210 DEG F - FLUID LEVEL @ 248' (1 hrs) MONITOR WELL - FLUID LEVEL @ 213' (1 hrs) MONITOR WELL - FLUID LEVEL @ 213' (1 hrs) MONITOR WELL - FLUID LEVEL @ 208' (1 hrs) MONITOR WELL - FLUID LEVEL @ 208' (1 hrs) MONITOR WELL - FLUID LEVEL @ 200' (1 hrs) MONITOR WELL - FLUID LEVEL @ 193' (1 hrs) MONITOR WELL - FLUID LEVEL @ 191' (1 hrs) MONITOR WELL - FLUID LEVEL @ 187' (1 hrs) MONITOR WELL - FLUID LEVEL @ 183' (1 hrs) MONITOR WELL - RAN MRT 210 DEG F (1 hrs) MONITOR WELL - FLUID LEVEL @ 176' (1 hrs) MONITOR WELL - FLUID LEVEL @ 174' (1 hrs) MONITOR WELL - FLUID LEVEL @ 169' (1 hrs) MONITOR WELL - FLUID LEVEL @ 167' (1 hrs) MONITOR WELL - RUN MRT (1 hrs) Comments: MONITOR WELL Mud Data: None Surveys: None Daily Costs ($): 17,951 Well Costs ($): 16,439,050 Drilling Days: 243 Completion Days: 7 Workover Days: 0 Pane 98 of 98 Pnr?tod* 99,16 15A'ov-10 liVmbase D. I, 7.06 r Fv- w Roily Completion Report Naknek Electric Asiociation. W61 -. I ID: o- 1 IF Well Name.-. 0-1 i ield'King Salmon Sect, 14 Towr�.17S Rpq: 44 County: Bristol VY Rep�ort for 6:00 AM F[ 23-Apr=LQ-_TL--j2--S&UL--j0- Bay Boro u h State: AK -9 Report No: 251 Operator., Naknek Elect= Assoc Rig, NEA Rig 7 Orig RKS Elev. 2610 State* AK Measured Depth (ft): 11,387 Completion Days: 8 Casing Head Elev* County: Bristol Bay Borough Vertical Depth (ft)': 11,346 Days On Location: 251 Tubing Head Elev: Field: King Salmon Plug Back MD:' 7,568 Spud Date: 16 -Aug -09 Last SOP Test: 05 -Aar -10 Working Interest' 1614.000% Plug Back TVD. 7,568 Lost Casing: 7.64 at 10,433 Well Bore: Sidetrack #2 Current Operations: SHUT IN AND MONITOR WELL HEAD PRESSURE Planned Operations: RUN RTTS PACKER AND SECURE WELL BORE Toolpusher: Chad Patton Website Supervisors: Stanley Burton Tel Nw 907-246-3651 Management Summary WAIT ON FINANCING TO SECURE WELL BORE Comments TEST S,O.P.& E EVERY 7 DAYS AS REQUIRED BY STATE DURING WELL MONITOR PROCEDURES CostIAFE Information AFE No AFE Description AFE Amount Daily Mud Well Mud Daily Total Well Total % Spent No AFE Assigned 0 0 887,604 0 16,480,623 Totals S: 0 0 887,604 0 16,480,623 Tubular Information Type Site (ins) Top MO (ft) Stm MD (ft) Top TVD (ft) Btm TVD (ft) LOT (lbsigal) FULL -- 22.00 0 397 0 397 FULL 15.00 0 2.885 0 2,885 1250 FULL 1600 0 2,885 0 4885 LINER 11,75 2,560 7.860 2,560 7,860 3.60 LINER 1175 2360 7,860 2.560 7,8e4 8.60 LINER 8.83 7,668 9.912 7,668 9,912 10.60 LINER 7.64 7,317 14,433 Workstring Information Rig Information Equipment Problems., Location Condition; Transport: I. Pnr?tod* 99,16 15A'ov-10 liVmbase D. I, 7.06 r Fv- w Printed , 09,48 15 -Nov -10 Himbase 1 7.7." , dvu r V, 4 Daily Completion Report Naknek Electric Association i Y -P W"ell ID: "G-1 Well Name: G Field: King Salmon Sect: 14 Town: 17S Rng: 44W .County: Bristol Day Borough State: AK Report No: 252 RepoFt— for 6:00 A-ff--FT I r — ept- Operator-, Naknek Electric Assoc Rig: NEA Rig 7 Orig RKB Elev-- 26 10 State: AK Measured Depth (ft): 11,387 Completion Days: 9 Casing Head Elev* County. Bristol Say Borough Vertical Depth (it): 11,346 Days On Location' 252 Tubing Head Elev: Field: King Salmon Plug Back MO: 7,568 Spud Date: 16 -Aug -09 Last BOP Test 05 -Apr -10 Working Interest' 100.000% Plug Back TVD: 7.568 Last Casing: 7,64 at 10,433 Well Bore; Sidetrack #2 Current Operations SET 11 3/4'RTTZ PACKER @ 3412' POOH TISURF NIPPLE DOWN 13 513 B OY & SECURE WELL HEAD WITH PHODUC I ION I HLE ALSO} SE I blNGLI= GA I lz UN I OP Ut- PKUUU(.;l IUN I Ktt HIM RF I HiLVL R I I IAUKER LA*)N D P. & SHUT IN MASTER VALVE. RIG RELEASED ON 9-15-10 @ 1600 HRS Planned Operations: MONITOR WELL HEAD PRESSURE Tootpusher. Chad Patton Wellsite supervisors: Stanley Burton Tat No.: 907-246-3661 Comments WELL HEAD PRESSURE HAS READ ZERO THRU THIS TIME CostIAFE Information AFE No AFE Description AFE Amount Daily Mud Well Mud Daily Total Well Total % spent NoAFE AsWned 0 0 887,6114 0 16,480.623 Totals S. 0 0 887,604 0 16,480,623 Tubular Information Type Size (Ins) —------fopMO(ft) Btrn MD (ft) Top TVD (ft) Stns TVD (ft) L bilgal) FULL 22,00 0 397 0 397 FULL 16,00 0 2,886 0 2,885 12.50 FULL 16-00 0 2,885 0 2.885 LINER 11,75 2.560 7,860 2,560 7,860 8.60 LINER 11,75 2,560 7,860 2,560 7,860 8,60 LINER 8.63 7,668 9,912 7,668 9,912 10,60 LINER 7.64 7.317 10,433 Workstring Information Rig Information Equipment Problems, Location Condition: Transport* Printed , 09,48 15 -Nov -10 Himbase 1 7.7." , dvu r V, 4 0 Regg, James B (DOA) 9 Page 1 of 1 From: Company Man [drillsup@nea.coop] Sent: Monday, September 13, 2010 7:28 AM To: gfriedmann@aes.alaska.com; DOA AOGCC Prudhoe Bay; Regg, James B (DOA) Cc: dvukich@nea.coop; neapusher@nea.coop Subject: 9-12-10 B.O.P test naknek electric assoc rig #7 Attachments: NEA RIG #7 (9-12-10.xls Here is our B.O.P test Thanks Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 9/13/2010 STATE OF ALASKA o OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: lim.regg alaska.gov doa.aogcc. Prudhoe. bay(cDalaska.gov Phoebe. brooks analaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 9/12/10 Rig Rep.: CHAD PATTON Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Test: Test Pressure: Drlg: Initial: Rams: X 250-4,500 Workover: Weekly: X Annular: 250-3500 Explor.: Bi -Weekly Valves: X 250-4500 Alarm MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: NA Test Result P Test Result Annular Preventer Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P NA MS Misc NA NA FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 16 P No. Valves 11 P Full Pressure Attained 113 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2200 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 7_0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: 'im.re alaska. oy Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Re g Date 9/12/10 Time 7.0 Test start Finish Witness PLB 01/25/10 NEA RIG #7 (9-12-10.x1s STATE OF ALASKA 01/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.regg(c)-alaska.Qov doa.aogcc.Prudhoe. bav(cDalaska.gov Phoebe. brooksCaaalaska.aov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 9/5/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Test: Test Pressure: Drlg: X Initial: Rams: 250-4,500 Workover: Weekly: X Annular: 250-3500 Explor.: X Bi -Weekly Valves: 250-4500 MUD SYSTEM: MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: 0 Test Result Test Result Trip Tank Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P P H2S Gas Detector P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 17 P No. Valves 11 P Full Pressure Attained 80 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8@2300 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 5_0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: 'im.re alaska. ov Remarks: 24 HOUR NOTICE GIVEN YES X NO Date 9/5/10 Time 5 Test start 2000 Finish PLB 01/25/10 Waived By Jim Witness BOP Naknek Rig 7 9-5-10.xls • Regg, James B (DOA) • Page 1 of 1 From: Company Man [drillsup@nea.coop] Sent: Sunday, August 29, 2010 6:39 AM f To: Regg, James B (DOA); Brooks, Phoebe L (DOA); DOA AOGCC Prudhoe Bay Cc: dvukich@nea.coop; neapusher@nea.coop Subject: NEA RIG #7 8-29-10 (B.O.P TEST) e Attachments: NEA RIG #7 8-29-10.xls Here are the results for the B.O. P Test preformed on 8-29-10. Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 8/31/2010 0 6(�Aiko STATE OF ALASKA Quantity Size/Type 01/25/10 OIL AND GAS CONSERVATION COMMISSION MUD SYSTEM: Visual Alarm BOPE Test Report 0 Submit to: iim.regg(a_alaska.gov P Annular Preventer 1 doa.aogcc. Prudhoe. bav(a)_alaska.gov P Pit Level Indicators P Phoebe. brooks(aaalaska.aov #1 Rams 1 Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 8/29/10 J Rig Rep.: TIM SHERMAN Rig Phone: 907-246-3651 Rig Fax: P Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 1 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop H2S Gas Detector P Well Name: _N EA G#1Stk#2 PTD # 2215(DNR) 0 Operation: Drlg: X Workover: Explor.: X #5 Rams Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 ' Annular: 250-3500 Valves: 250-4500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP _ 1 P 0 FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 2050 P Quantity Test Result 200 psi Attained 17 P No. Valves 11 P Full Pressure Attained 76 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2200 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 5_5 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: 'im.re alaska. ov Remarks: 24 HOUR NOTICE YES X NO Date 8/26/10 Time 5.5 est start 2000 Finish PLB 01/25/10 Waived By Jim Witness NEA RIG #7 8-29-10.xls • • Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop]Oe Sent: Sunday, August 22, 2010 9:01 AM ( j To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Subject: NEA Rig #7 B.O.P Test ( 8-22-10 ) Attachments: 8-22-10 B.O.P Test.xls Here are the results for our B.O.P test preformed on 8-22-10 Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 8/23/2010 Test Results Number of Failures: 0 Test Time: 5_5 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607. follow with written confirmation to Supervisor at: iim.reggCcQalaska.gov_ 24 HOUR NOTICE GIVEN YES X NO Date 8/22/10 Time 5.5 Test start 2000 Finish PLB 01/25/10 By Jim Witness BOP NEA7 8-22-10.xls STATE OF ALASKA JBL 01/25/10 OIL AND GAS CONSERVATION COMMISSION �'t-��;� BOPE Test Report Submit to: lim.regg(a�alaska.gov doa. aogcc. Prudhoe. bay(a)alaska. gov Phoebe. brooksa-alaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 8/22/10 Rig Rep.: Tim Sherman Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 Annular: 250-3500 Valves: 250-4500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 2100 P Quantity Test Result 200 psi Attained 15 P No. Valves 11 P Full Pressure Attained 81 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2150 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 5_5 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607. follow with written confirmation to Supervisor at: iim.reggCcQalaska.gov_ 24 HOUR NOTICE GIVEN YES X NO Date 8/22/10 Time 5.5 Test start 2000 Finish PLB 01/25/10 By Jim Witness BOP NEA7 8-22-10.xls 0 Regg, James B (DOA) 10 Page 1 of 1 From: Company Man [drillsup@nea.coop] Sent: Saturday, August 14, 2010 8:19 AM To: Regg, James B (DOA) Subject: Naknek Electric Assoc. B.O.P.&E Test Attachments: BOP TEST 8-14-10.x1s Here is our B.O.P test results, again our status is cleaning the wellbore with any luck we will be moving the begging of september if any questions please contact me thanks Regards Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 8/16/2010 01/25/10 110 • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: lim.reggt�alaska.gov doa.aoqcc. Prudhoe. bay(aD-alaska.gov Phoebe. brooks(cDalaska. qov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 8/14/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Test: Initial: Test Pressure: Rams: 250-4,500 MISC. INSPECTIONS: 0 Test Result Location Gen.: P Well Sign Housekeeping: P Drl. Rig PTD On Location P Hazard Sec. Standing Order Posted P Misc Workover: Weekly: X Annular: 250-3500 TEST DATA Test Result P P P NA Explor.: X Bi -Weekly Valves: 250-4500 FLOOR SAFETY VALVES: Quantity Test Result pper Kelly 1 P ower Kelly 1 P Ball Type 1 P iside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 16 P No. Valves 11 P Full Pressure Attained 73 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 8.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: iim.regg(a�alaska.gov Remarks: 24 HOUR NOTICE GIVEN YES X NO Date 8/13/10 Time 8.0 Test start 2300 Finish By Jim Witness PLB 01/25/10 2010-0814_BOP_NEA7_Naknek_G-1 ST2.xls 0 4 Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Saturday, August 07, 2010 8:39 AM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: Company Man Subject: NEA RIG#7 HING SALMON AK. BOP TEST RESULTS Attachments: BOP TEST 8-6-10.xls HERE IS TEST RESULT FOR 8-6-10 Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 8/9/2010 0 0 STATE OF ALASKA 01/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.reggtcD_alaska.aov doa.aogcc.Prudhoe. bay(aDalaska.aov Phoebe. brooks(a)alaska. qov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 8/6/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 Annular: 250-3500 Valves: 250-4500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: 'im.re alaska. ov Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Winton Aubert Date 8/6/10 Time 6 Witness Test start 1100 Finish 1700 PLB 01/25/10 2010-0806_BOP_N EA7_Naknek_G-1 ST2.xls Test Result Test Result FSV Misc Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: 'im.re alaska. ov Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Winton Aubert Date 8/6/10 Time 6 Witness Test start 1100 Finish 1700 PLB 01/25/10 2010-0806_BOP_N EA7_Naknek_G-1 ST2.xls FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 15 P No. Valves 11 P Full Pressure Attained 72 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: 'im.re alaska. ov Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Winton Aubert Date 8/6/10 Time 6 Witness Test start 1100 Finish 1700 PLB 01/25/10 2010-0806_BOP_N EA7_Naknek_G-1 ST2.xls i Regg, James B (DOA) 0 Page 1 of 1 From: Company Man [drillsup@nea.coop] f j Sent: Friday, July 30, 2010 8:30 AM -,am I1�1t° To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: neapusher@nea.coop Subject: NEA Rig #7 BOP Test Attachments: BOP TEST 7-30-10.x1s Here are the results from the BOP Test ( 7-30-10 ) Thanks Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 7/30/2010 a Ah 14W MW 7 u STATE OF ALASKA 01/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to:iim.regg(aD_alaska.gov doa.aogcc.Prudhoe. bay(c alaska.gov Phoebe. brooks(a)alaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 7/30/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Test: Test Pressure: Drlg: X Initial: Rams: 250-4,500 Workover: Weekly: X Annular: 250-3500 Explor.: X Bi -Weekly Valves: 250-4500 MUD SYSTEM: Visual MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type I P Standing Order Posted P Misc NA Inside BOP 1 P P H2S Gas Detector P P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 15 P No. Valves 11 P Full Pressure Attained 82 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 5_0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: 'im.re alaska. ov Remarks: 24 HOUR NOTICE GIVEN YES X NO Date 7/27/10 Time 5 Test start 2000 Finish PLB 01/25/10 Waived By Jim Witness BOP TEST 7-30-10.xis 0 Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Friday, July 23, 2010 6:58 AM To: Regg, James B (DOA) Cc: dvukich@nea.coop Subject: Naknek Electric Assoc. 7-23-10 BOPE test results Attachments: BOP TEST 7-23-10.xlsx Here are our test results. Talk to you next week Best Regards Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 8/2/2010 0 • STATE OF ALASKA 01/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.regq@alaska.gov doa.aogcc.Prudhoe. bav(c)-alaska.gov Phoebe. brooksC�alaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 7/23/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Test: Test Pressure: Drlg: Initial: Rams: X 250-4,500 Workover: Weekly: X Annular: 250-3500 Explor.: Bi -Weekly Valves: X 250-4500 Stripper MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: P Test Result 1 Test Result P Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P #6 Rams 0 FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P - Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1900 P Quantity Test Result 200 psi Attained 17 P No. Valves 11 P Full Pressure Attained 89 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 7_0 'Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607 follow with written confirmation to Supervisor at: iim.regg@ALgska.goy Remarks: 24 HOUR NOTICE YES X NO Date 7/20/10 Time 7 Test start PLB 01/25/10 Finish By Jim Witness Naknek Rig 7 7-23-10.x1s • Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Friday, July 16, 2010 10:14 AM j To: Regg, James B (DOA) Cc: dvukich@nea.coop Subject: 7-15-10 NEA # 7 B.O.P Test Results Attachments: BOP TEST 7-15-10.xlsx Here are our B.O.P test results Regards Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 7/16/2010 • • cel -71-oI' o STATE OF ALASKA 11/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.regg(a)alaska.aov doa.aoacc.Prudhoe. bay aC)-alaska.aov Phoebe. brooks(cD_alaska. gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 7/15/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X FSV Misc Test: Initial: Weekly: X Bi -Weekly Size/Type Test Pressure: Rams: 250-4,500 Annular: 250-3500 ' Valves: 250-4500 ' MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Trip Tank Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Re g Date 7/13/10 Time 8 Witness Test start 1100 Finish 0700 PLB 01/25/10 BOP NEA 7 7-15-10.x1s FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 2100 P - Quantity Test Result 200 psi Attained 15 P No. Valves 11 P Full Pressure Attained 81 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 8_0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607 follow with written confirmation to Supervisor at: iim.reaaCa)alaska.aov Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Re g Date 7/13/10 Time 8 Witness Test start 1100 Finish 0700 PLB 01/25/10 BOP NEA 7 7-15-10.x1s • � Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Wednesday, July 07, 2010 6:21 PM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: dvukich@nea.coop Subject: 7-7-10 NEA # 7 B.O.P Test Results Attachments: BOP TEST 7-7-10.xlsx Here are our test results Regards Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 7/13/2010 0 1PC-7 - Test Results Number of Failures: 0 Test Time: 6_0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607 follow with written confirmation to Supervisor at: jim.regg(aD_alaska.gov Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Winton Aubert Date 7/6/10 Time 6 Witness Test start 1100 Finish 1700 PLB 01/25/10 2010-0707_BOP_NEA7_Naknek_G-1 ST2.xls STATE OF ALASKA 01/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: Iim.reggCu�alaska.gov doa.aogcc.Prudhoe. bavCn)-alaska.gov Phoebe. brooksCaD-alaska. qov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 7/7/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 Annular: 250-3500 Valves: 250-4500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P ' FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 15 P No. Valves 11 P J Full Pressure Attained 72 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6_0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607 follow with written confirmation to Supervisor at: jim.regg(aD_alaska.gov Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Winton Aubert Date 7/6/10 Time 6 Witness Test start 1100 Finish 1700 PLB 01/25/10 2010-0707_BOP_NEA7_Naknek_G-1 ST2.xls 0 • Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Tuesday, June 29, 2010 9:40 AM To: Regg, James B (DOA) Cc: dvukich@nea.coop; neapusher@nea.coop Subject: NEA # 7 B.O.P. test Attachments: BOP TEST 6-2B-1-0.xlsx Here is our B.O.P. Test G -2-5 • +0 Thanks Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 7/1/2010 STATE OF ALASKA 0 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.regg(a�alaska.gov doa.aogcc.Prudhoe. bay(cD-alaska.gov Phoebe. brooks(a)alaska. qov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 6/29/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Test: Test Pressure: Drlg: Initial: Rams: X 250-4,500 Workover: Weekly: X - Annular: 250-3500 — Explor.: X Bi -Weekly Valves: 250-4500 " MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Trip Tank Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P H2S Gas Detector P P #4 Rams FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P - Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 16 P No. Valves 11 P Full Pressure Attained 73 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 7.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607. follow with written confirmation to Supervisor at: iim.reggri alaska.gov 24 HOUR NOTICE GI YES X NO Date 6/28/10 Time 7 Test start 2000 Finish PLB 01/25/10 By Jim Witness Naknek Rig 7 06-29-10.xls Page 1 of 1 . • Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Tuesday, June 22, 2010 7:50 AM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: dvukich@nea.coop; neapusher@nea.coop Subject: NEA RIG #7 KING SALMON AK. 6-21-10 BOP TEST Attachments: BOP TEST 6-21-10.xlsx Here is BOP test for 6-21-10 Thank you Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 6/22/2010 STATE OF ALASKA 1� o OIL AND GAS CONSERVATION COMMISSION 6�( BOPE Test Report Submit to: iim.rega alaska.gov doa.aogcc. Prudhoe. bay(cDalaska.gov Phoebe. brooks(a)alaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 6/21/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Test: Test Pressure: Drlg: X Initial: Rams: 250-4,500 Workover: Weekly: X Annular: 250-3500 Explor.: X Bi -Weekly Valves: 250-4500 MUD SYSTEM: Visual MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P P H2S Gas Detector P P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 15 P No. Valves 11 P Full Pressure Attained 70 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6_0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607 follow with written confirmation to Supervisor at: iim.reggCa�alaska.gov Remarks: 24 HOUR NOTICE YES X NO Date 6/21/10 Time 6 est start 1400 Finish PLB 01/25/10 Waived By Jim Witness BOP Naknek Rig 7 06-21-10.xls Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Monday, June 14, 2010 6:08 AM To: Regg, James B (DOA) Cc: dvukich@nea.coop Subject: B.O.P Test Attachments: 6-14-2010.xls Here is our B.O.P test results Thank You. Regards Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 6/14/2010 STATE OF ALASKA 0 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: aim. regg(cDalaska.gov doa. aogcc. Prudhoe. bayCa)alaska. gov Phoebe. brooksCc)-alaska. gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 6/14/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Test: Test Pressure: Drlg: Initial: Rams: X 250-4,500 Workover: Explor.: X Weekly: X Bi -Weekly Annular: 250-3500 Valves: 250-4500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 2100 P Quantity Test Result 200 psi Attained 17 P No. Valves 11 P Full Pressure Attained 80 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6.5 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: lim.reggcu'�alaska.gov Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Date 6/11/10 Time 9:30 am Witness Test start 2200 Finish PLB 01/25/10 2010-0614 BOP NEA7 Naknek G-1ST2.xls • . Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Sunday, June 06, 2010 7:58 AM To: Regg, James B (DOA) Cc: Aubert, Winton G (DOA) Subject: NEA # 7 B.O.P.&.E Test Results Attachments: 6-6-2010.xls Here are our results thank you and have a nice day Regards Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) yf>f 6/7/2010 • • Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Friday, June 04, 2010 10:16 AM To: Regg, James B (DOA) Cc: Aubert, Winton G (DOA) Subject: NEA # 7 Notice of B.O.P Test I am sending this email to give notice for our B.O.P test wich we will be doing the night of 6-5-2010 @ around 11:00 pm at night. The well name is G-1 STRK # 2 Please contact me back at the cell phone number listed below thank you and have a good day. Regards Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 6/7/2010 Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: iim.recaa(a�alaska.aov Remarks: YES X NO Date 6/4/10 Time Test start 2200 Finish PLB 01/25/10 Waived By Winton Aubert 8:00 am Witness BOP NEAT 6-6-2010.xis • • STATE OF ALASKA 01/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: aim. regpCaD-alaska.gov doa.aogcc.Prudhoe. bay(c)-alaska.gov Phoebe. brooks(cD.alaska.aov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 6/6/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: STANLEY BURTON E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 Annular: 250-3500 Valves: 250-4500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1950 P Quantity Test Result 200 psi Attained 16 P No. Valves 11 P Full Pressure Attained 76 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: iim.recaa(a�alaska.aov Remarks: YES X NO Date 6/4/10 Time Test start 2200 Finish PLB 01/25/10 Waived By Winton Aubert 8:00 am Witness BOP NEAT 6-6-2010.xis Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Tuesday, April 13, 2010 11:08 AM To: Regg, James B (DOA) Subject: NEA # 7 B.O.P. TEST REPORT Attachments: BOP Report Template Naknek.xls Here is our test report. Thank you Stanley Burton Interim Company Man - NEA Rig #7 Naknek Electric Association, Inc. PO Box 118 Naknek, AK 99633 (907) 439-3999 (cell) (907) 246-3651 (landline) (661) 623-4454 (personnel) 4/13/2010 Page 1 of 1 Test Results Number of Failures: 0 Test Time: 9.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: iim.reaaCa)alaska.gov Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Regg Date 4/9/10 Time 1300 Witness Test start 02:00 Finish 11:00 PLB 01/25/10 BOP Report Template Naknek (2).xls • 9 STATE OF ALASKA )1/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.regg(ccDalaska.aov doa.aogcc. Prudhoe. bay(a)alaska. gov Phoebe. brooks(&-alaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 4/13/10 Rig Rep.: Stanley Burton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Electric Assn. Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: Chad Patton E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 Annular: 250-3500 Valves: 250-4500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 BLIND P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 15 P No. Valves 11 P Full Pressure Attained 70 P Manual Chokes 2 P Blind Switch Covers: All stations YES Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 9.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: iim.reaaCa)alaska.gov Remarks: 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Regg Date 4/9/10 Time 1300 Witness Test start 02:00 Finish 11:00 PLB 01/25/10 BOP Report Template Naknek (2).xls Page 1 of 1 Regg, James B (DOA) From: Brooks, Phoebe L (DOA) Sent: Monday, April 05, 2010 1:43 PM To: Regg, James B (DOA) �C�� 4-14((o Subject: FW: NEA Rig 7 BOPE Test Attachments: Naknek Rig 7 04-04-10.xls Phoebe Brooks Statistical Technician II Alaska Oil and Gas Conservation Commission Phone: 907-793-1242 Fax: 907-276-7542 From: Company Man [mailto:drillsup@nea.coop] Sent: Monday, April 05, 2010 1:41 PM To: Brooks, Phoebe L (DOA) Subject: Re: NEA Rig 7 BOPE Test Thank You. Please forward onto Jim. Nick ----- Original Message ----- From: Brooks, Phoebe L (DOA) To: Company Man Sent: Monday, April 05, 2010 1:33 PM Subject: RE: NEA Rig 7 BOPE Test Hi Nick, There wasn't an attachment?? Phoebe Brooks Statistical Technician 11 Alaska Oil and Gas Conservation Commission Phone: 907-793-1242 Fax: 907-276-7542 From: Company Man [mailto:drillsup@nea.coop] Sent: Monday, April 05, 2010 11:17 AM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: dvukich@nea.coop; 'Stan Burton' Subject: NEA Rig 7 BOPE Test Best Regards, Nick Scales NEA Rig 7 Geothermal Drilling King Salmon, AK 907-242-3651 4/5/2010 Test Results Number of Failures: 0 Test Time: 6.5 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: Lm.regg@alaska.gov Remarks: Good Test. No failures. 24 HOUR NOTICE YES X NO Date 4/2/10 Time 1600 Test start 1700 Finish PLB 01/25/10 Waived By Jim Witness Naknek Rig 7 04-04-10.xls STATE OF ALASKA V 01/25/10 OIL AND GAS CONSERVATION COMMISSION Ahlla BOPE Test Report Submit to: iim.reaaCaDalaska.gov doa.aoacc.Prudhoe. bay(c alaska.gov Phoebe. brooks(ccDalaska. qov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 4/4/10 Rig Rep.: Stanley Burton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Elect Assn Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: Nick Scales E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 Annular: 250-3,500 Valves: 250-4,500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 Blind P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P ' CHOKE MANIFOLD: Pressure After Closure 1700 P Quantity Test Result 200 psi Attained 36 P No. Valves 11 P Full Pressure Attained 92 P Manual Chokes 2 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6.5 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: Lm.regg@alaska.gov Remarks: Good Test. No failures. 24 HOUR NOTICE YES X NO Date 4/2/10 Time 1600 Test start 1700 Finish PLB 01/25/10 Waived By Jim Witness Naknek Rig 7 04-04-10.xls • Regg, James B (DOA) 0 From: NICK SCALES [njs@gci.net] Sent: Sunday, March 28, 2010 8:18 AM To: Regg, James B (DOA); doa.aogcc.prudhoe. bay@alaska.goc; Brooks, Phoebe L (DOA) Cc: dvukich@nea.coop; neapusher@gmail.gov Subject: NEA Rig 7 BOPE Test Attachments: ATT254864.htm; Naknek Rig 7 03-27-10.As ifl IN AT17254864.htm Naknek Rig 7 (427 B) 03-27-10.xls (48 ... Best Regards, Nick Scales NEA Rig 7 Geothermal Drilling King Salmon AK 907-246-3651 3Ij0 1 1 PLB 01/25/10 Naknek Rig 7 03-27-10.x1s i • STATE OF ALASKA�� )1/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: lim.repg@alaska.Qov doa.aoacc.Prudhoe. bav a�alaska.gov phoebe. brooks(aD-alaska. Qov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 3/27/10 Rig Rep.: Stanley Burton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Elect Assn Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: Nick Scales E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 Annular: 250-3,500 Valves: 250-4,500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 Blind P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 2150 P Quantity Test Result 200 psi Attained 15 P No. Valves i l P Full Pressure Attained 90 P Manual Chokes 2 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2200 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: iim.regg@alaska.gov Remarks: Good Test. No failures. 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Regg Date 3/25/10 Time 1600 Witness Test start 1300 Finish 1900 3Ij0 1 1 PLB 01/25/10 Naknek Rig 7 03-27-10.x1s Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Saturday, March 20, 2010 2:18 PM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: dvukich@nea.coop; 'Stan Burton'; pattonc7@gmail.com Subject: NEA Rig 7 BOPE Test Attachments: Naknek Rig 7 03-20-10.xls Best Regards, Nick Scales NEA Rig 7 Geothermal Drilling King Salmon, AK 907-246-3651 3/22/2010 Page 1 of 1 6 Drlg: X Initial: Rams: 250-4,500 0 STATE OF ALASKA TEST DATA /25/10 OIL AND GAS CONSERVATION COMMISSION Test Result BOPE Test Report Location Gen.: Submit to: iim.reggCa7alaska.gov Housekeeping: P Drl. Rig doa. aogcc. Prudhoe. bav()alaska. gov PTD On Location Phoebe. brooksCcaalaska. gov P Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 3/20/10 Rig Rep.: Stanley Burton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Elect Assn Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: Nick Scales E -Mail drillsup@nea.coop #5 Rams Well Name: NEA G#1Stk#2 PTD # 2215(DNR) NA Operation: Test: Test Pressure: Drlg: X Initial: Rams: 250-4,500 Workover: Weekly: X Annular: 250-3,500 MISC. INSPECTIONS: TEST DATA 0 Test Result Test Result Location Gen.: P Well Sign P Housekeeping: P Drl. Rig P PTD On Location P Hazard Sec. P Standing Order Posted P Misc NA BOP STACK: Quantity Size/Type Test Result Stripper 0 P NA Annular Preventer 1 13-5/8" P #1 Rams 1 5" P #2 Rams 1 Blind P #3 Rams 1 5" P #4 Rams 0 NA #5 Rams 0 NA #6 Rams 0 NA Choke Ln. Valves 1 4-1/16" P HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA BOP Misc 0 NA CHOKE MANIFOLD: Quantity Test Result No. Valves 11 P Manual Chokes 2 P Hydraulic Chokes 1 P CH Misc 0 NA Explor.: X Bi -Weekly Valves: 250-4,500 FLOOR SAFETY VALVES: Visual Quantity Test Result Upper Kelly 1 P Lower Kelly 1 P Ball Type 1 P Inside BOP 1 P FSV Misc 0 NA MUD SYSTEM: Visual Alarm Trip Tank P P Pit Level Indicators P P Flow Indicator P P Meth Gas Detector P P H2S Gas Detector P P MS Misc NA NA Quantity Test Result Inside Reel valves 0 NA ACCUMULATOR SYSTEM: Time/Pressure Test Result System Pressure 3000 P Pressure After Closure 2200 P 200 psi Attained 17 P Full Pressure Attained 75 P Blind Switch Covers: All stations Yes Nitgn. Bottles (avg): 8 @ 2250 ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: iim.regga-alaska.gov marks: Good Test. No failures. 24 HOUR NOTICE GIVEN YES X NO Date 3/17/10 Time 1630 est start 0600 Finish PLB 01/25/10 Waived By Jim Witness Naknek Rig 7 03-20-10.x1s 0 . Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Friday, March 12, 2010 11:01 AM1 �I 6Iru To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: dvukich@nea.coop; 'Stan Burton'; pattonc7@gmail.com Subject: NEA Rig 7 BOPE Test Attachments: Naknek Rig 7 03-12-10.xls Best Regards, Nick Scales NEA Rig 7 Geothermal Drilling King Salmon, AK 907-246-3651 3/12/2010 Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: lim.regg@AkLka.gov Remarks: Good Test. No failures. 24 HOUR NOTICE GIVEN YES X NO Date 3/9/10 Time 1630 Test start 0000 Finish PLB 01/25/10 Waived By Jim Witness BOP Naknek Rig 7 03-12-10.xls • • STATE OF ALASKA 01/25/10 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.regg(M-alaska.gov doa.aogcc.Prudhoe. bay(cD-alaska.gov Phoebe. brooks(cDalaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 3/12/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Elect Assn Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: Nick Scales E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 Annular: 250-3,500 Valves: 250-4,500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type i P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 Blind P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1750 P Quantity Test Result 200 psi Attained 19 P No. Valves 11 P Full Pressure Attained 95 P Manual Chokes 2 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: lim.regg@AkLka.gov Remarks: Good Test. No failures. 24 HOUR NOTICE GIVEN YES X NO Date 3/9/10 Time 1630 Test start 0000 Finish PLB 01/25/10 Waived By Jim Witness BOP Naknek Rig 7 03-12-10.xls • • Page 1 of 1 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] o� '71 '\0 Sent: Thursday, March 04, 2010 7:17 PM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: donna Vukich; 'Stan Burton'; pattonc7@gmail.com Subject: NEA Rig 7 BOPE Test Attachments: Naknek Rig 7 03-03-10.xls Best Regards, Nick Scales NEA Rig 7 Geothermal Drilling King Salmon,AK 907-246-3651 3/5/2010 STATE OF ALASKA /25/10 OIL ND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.reggCc�alaska.gov doa. aogcc. Prudhoe. bay@alaska. gov phoebe. brooksCcD_alaska. gov Contractor: Nal nek Electric Assn. Rig No.: 7 DATE: 3/4/10 Rig Rep.: Chad Patton Rig Phone: 907-246-3651 Rig Fax: Operator: Nak iek Elect Assn Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: Nic Scales E -Mail drillsup@nea.coop Well Name: N EA G#1Stk#2 PTD # 2215(DNR) Operation: Test: Test Pressure: Drlg: X Initial: Rams: 250-4,500 Workover: Explor.: X Weekly: X Bi -Weekly Annular: 250-3,500 Valves: 250-4,500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Tes Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P - Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 Blind P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 2850 P CHOKE MANIFOLD: Pressure After Closure 1800 P Quantity Test Result 200 psi Attained 18 P No. Valves 11 P Full Pressure Attained 87 P Manual Chokes 2 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 7_5 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: jim.regg@alastg.gov Remarks: Good Test. No failures. 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Regg Date 3/1/10 Time 1000 Witness Te$t start 0700 Finish 1430 PLB 01/25/10 Naknek Rig 7 03-03-10 (2).xls 0 0 PB 10/22/09 BOP Naknek Rig 7 01-07-10.x1s STATE OF ALASKA 10/22/09 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report '�p� j Submit to: jim.reaaCa�alaska.Qov doa. aogcc. Prudhoe. bay(a)alaska. gov Phoebe; brooks(cDalaska. gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 1/7/10 Rig Rep.: Stanley Burton Rig Phone: 907 246-3651 Rig Fax: Operator: Naknek Elect. Assn. Op. Phone: 907 246-4261 Op. Fax: 907 246-6242 Rep.: Nick Scales E -Mail drillsup@nea.cooP Well Name: Naknek • G#1 PTD # 2215 (DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4500 Annular: 250-3500 Valves: 250-4,500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP I P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 N/A NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 Blind P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 N/A NA MS Misc NA NA #5 Rams 0 N/A NA #6 Rams 0 N/A NA Quantity Test Result Choke Ln. Valves 1 41/16 P Inside Reel valves 0 NA HCR Valves 1 41/16 P Kill Line Valves 2 31/8 P Check Valve 0 N/A NA ACCUMULATOR SYSTEM: BOP Misc 0 N/A NA Time/Pressure Test Result System Pressure 2950 P CHOKE MANIFOLD: Pressure After Closure 1550 P Quantity Test Result 200 psi Attained 16 P No. Valves 11 P Full Pressure Attained 266 P Manual Chokes 2 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 8_5 Hours Repair or replacement of equipment will be made within 3 days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: jim.regg@alaska.gov Remarks: No failures during testing. 24 HOUR NOTICE GIVEN YES X NO Waived By Jim Regg Date 1/5/10 Time 1000 Witness Test start 0500 Finish 1330 PB 10/22/09 BOP Naknek Rig 7 01-07-10.x1s • Page 1 of 1 Regg, James B (DOA) From: Brooks, Phoebe L (DOA) Sent: Thursday, March 04, 2010 12:14 PM 31a1(0 � 1 To: Regg, James B (DOA) Subject: FW: NEA Rig 7 BOPE Test Report Attachments: Naknek Rig 7 02-24-10.xls Phoebe Brooks Statistical Technician II Alaska Oil and Gas Conservation Commission Phone: 907-793-1242 Fax: 907-276-7542 From: Brooks, Phoebe L (DOA) Sent: Thursday, February 25, 2010 11:09 AM To: 'Company Man' Subject: RE: NEA Rig 7 BOPE Test Report Hi Nick, I didn't realize the previous templates for any DNR reports had the Contractor name manually entered (versus the drop down box) so I've revised this report to include the correct information. Thank you, Phoebe Phoebe Brooks Statistical Technician II Alaska Oil and Gas Conservation Commission Phone: 907-793-1242 Fax: 907-276-7542 From: Company Man [ma ilto:drillsup@nea.coop] Sent: Wednesday, February 24, 2010 6:26 PM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: donna Vukich; 'Stan Burton'; pattonc7@gmail.com Subject: NEA Rig 7 BOPE Test Report Best Regards, Nick Scales NEA Rig 7 Geothermal Drilling King Salmon, AK 907-246-3651 3/4/2010 • • STATE OF ALASKA 0 OIL AND GAS CONSERVATION COMMISSION�I� BOPE Test Report J� Submit to: iim.repgCcDalaska.gov doa.aogcc.Prudhoe. bay(M-alaska.aov Phoebe. brooksOD-alaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 2/24/10 Rig Rep.: Stanley Burton Rig Phone: 907-246-3651 Rig Fax: Operator: Naknek Elect Assn Op. Phone: 907-246-4261 Op. Fax: 907-246-6242 Rep.: Nick Scales E -Mail drillsup@nea.coop Well Name: NEA G#1Stk#2 PTD # 2215(DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4,500 Annular: 250-3,500 Valves: 250-4,500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 Blind P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 NA MS Misc NA NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 4-1/16" P Inside Reel valves 0 NA HCR Valves 1 4-1/16" P Kill Line Valves 2 3-1/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1800 P Quantity Test Result 200 psi Attained 16 P No. Valves 11 P Full Pressure Attained 123 P Manual Chokes 2 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: D Test Time: 6_0 Hours Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607 follow with written confirmation to Supervisor at: jim.regg@alaska.pov Remarks: Good Test. No failures. 24 HOUR NOTICE GIVEN YES X NO Waived By Lou Grimaldi Date 2/22/10 Time 1000 Witness Test start 0600 Finish 1200 PLB 01/25/10 Naknek Rig 7 02-24-10 (2).xls Davies, Stephen F (DOA) Subject: FW: Naknek G-1 well From: Davies, Stephen F (DOA) Sent: Thursday, February 18, 2010 11:23 AM To: Johnson, Elaine M (DOA); Saltmarsh, Arthur C (DOA); Mahnken, Christine R (DOA) Cc: Foerster, Catherine P (DOA) Subject: FW: Naknek G-1 well Elaine, Christine and Art, Shaun Peterson of DNR wants the following info put into RBDMS so it can go into the database that AOGCC provides to DNR each month. I don't remember if we assigned a permit number or not, but we should increment the last permit number in the 100 series by 1 and assign that number to the Naknek G-1 well (I believe the Naknek G-1 number should be 1004880, but Christine should check this). We should also change the API number on any paper files to 50-185- 20001-00-00. Once those tasks are done, Elaine can enter the following data into RBDMS. Do NOT enter any other information about Naknek G-1 into RBDMS until we get a written OK from Jonne Slemons or Shaun. Permit to Drill Number: 1004880 (this 100 -series number indicates that the permit to drill was not issued by AOGCC for the well) API Number: 50-185-20001-00-00 Operator: Naknek Electric Association Inc. Location: 1,140' FSL, 2,050' FWL, Section 14, T17S, R44W, Seward Meridian Lat/Long: Lat= 58.69902 N Long= 156-50394 W ASP (NAD -27): Zone 6 x=784,937 y=1,719,917 GeoArea: Bristol Bay Basin (according to the Alaska Geologic Province Boundary Map, AAPG, ca. 1962) Well Class: Exploratory Well Status: Geothermal Confidential: Yes KB: 275.6' MSL Lease: Fee -NEA (NEA Allotment) Thanks, Steve D. 0 The status of PTD number 2090960 in RBDMS will be listed as NTAPV, and the well name will be changed to Naknek G-1XX, and an entry will be made into the Comments section of the well maintenance form stating that the Permit number and the API number have been changed to 1004880 and 50185200010000. Christine: info in the 2090960 well history file should be moved to a new folder under PTD 1004880. The well history file under the PTD number 2090960 should contain a single page that explains: 1. the drilling permit for Naknek G-1 was issued by the DNR, and not by the Commission, so the permit to drill number was changed to 1004880 (100 -series numbers signify wells that were not permitted by the Commission), and 2. the API number was changed from API 50185000010000 to 50185200010000 to conform with API numbering practices. A copy of that same page should be placed (and kept) at the front of the new folder for PTD 1004880. Thanks, Steve D. • • Ol Regg, James B (DOA) • Page 1 of 1 From: Company Man [drillsup@nea.coop] Sent: Tuesday, February 16, 2010 7:27 PM r �r To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: Donna Vukich; 'Stan Burton'; pattonc7@gmail.com Subject: NEA Rig 7 BOPE Test Report Attachments: Naknek Rig 7 02-16-10.xls Best Regards, Nick Scales NEA Rig 7 Geothermal Drilling King Salmon, AK 907-246-3651 2/17/2010 STATE OF ALASKA 10/22/09 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.regq(M-alaska.gov doa.aogcc.Prudhoe. bay(aD-alaska.gov Phoebe. brooks(aD-alaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 2/16/10 Rig Rep.: Stanley Burton Rig Phone: 907 246-3651 Rig Fax: Operator: Naknek Elect. Assn. Op. Phone: 907 246-4261 Op. Fax: 907 246-6242 Rep.: Nick Scales E -Mail drillsup@nea.coop Well Name: Naknek - G#1Stk T2—,' PTD # 2215 (DNR) Operation: Test: Test Pressure: Drlg: X Initial: Rams: 250-4500 Workover: Weekly: X Annular: 250-3500 Explor.: X Bi -Weekly Valves: 250-4,500 MUD SYSTEM: Visual MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: N/A Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P P H2S Gas Detector P P . FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 N/A NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P . #2 Rams 1 Blind P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P . #4 Rams 0 N/A NA MS Misc NA NA #5 Rams 0 N/A NA #6 Rams 0 N/A NA Quantity Test Result Choke Ln. Valves 1 41/16 P Inside Reel valves 0 NA HCR Valves 1 41/16 P Kill Line Valves 2 31/8 P Check Valve 0 N/A NA ACCUMULATOR SYSTEM: BOP Misc 0 N/A NA Time/Pressure Test Result System Pressure 2950 P CHOKE MANIFOLD: Pressure After Closure 2200 P Quantity Test Result 200 psi Attained 17 P No. Valves 11 P Full Pressure Attained 132 P Manual Chokes 2 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 6.0 Hours Repair or replacement of equipment will be made within 3 days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: jim.regg@alaska.gov Remarks: No failures during testing. 24 HOUR NOTICE YES X NO Date 2/14/10 Time 1600 start 1200 Finish PB 10/22/09 By Chuck Scheve Witness BOP Naknek Rig 7 02-16-10.xls 0 0 SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMUSSION � ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 February 12, 2010 Matthew Rader Natural Resource Spec V State of Alaska Department of Natural Resources Division of Oil and Gas 550 W 7th Ave, Ste. 800 Anchorage, Alaska 99501 Dear Mr. Rader: AOGCC received and has reviewed NEA's Naknek G#2 Permit to Drill application. The Naknek G#2 well falls within the area designated in Conservation Order No. 625 as being under AOGCC's jurisdiction. Naknek G#2 is therefore subject to AOGCC regulations for drilling wells. AOGCC regulations 20 AAC 25.030 and 20 AAC 25.035 require that wellhead equipment and blowout prevention equipment, respectively, conform to certain stan- dards. Equipment proposed in NEA's Naknek G#2 permit application, does not meet AOGCC regulatory standards. As a result, AOGCC is treating NEA's Naknek G#2 permit application as a request for variance from AOGCC regulations. To date, Naknek G#1 subsurface data revealed no indication of hydrocarbons or other hazardous substances. Based upon Naknek G#2's proximity to Naknek G#1, AOGCC approves NEA's request for variance from AOGCC regulations, for well Naknek G#2.This approval is conditioned upon AOGCC being provided with Naknek G#2 subsurface logs and other data. Sincerely, Daniel T. Seamount Chairman Regg, James B (DOA) From: Sent: To: Cc: 0 • Page 1 of 1 Company Man [drillsup@nea.coop] Tuesday, February 09, 2010 2:14 PM �� -AOC) Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Donna Vukich; 'Stan Burton' Subject: NEA Rig 7 BOPE Test Report Attachments: Naknek Rig 7 02-09-10.xls Best Regards, Nick Scales NEA Rig 7 Geothermal Drilling King Salmon, AK 907-246-3651 2/9/2010 ! • STATE OF ALASKA 10/22/09 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: iim.reaaCa�alaska.gov doa.aogcc.prudhoe.bay(cDalaska.gov Phoebe. brooks(cOalaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 2/9/10 Rig Rep.: Stanley Burton Rig Phone: 907 246-3651 Rig Fax: Operator: Naknek Elect. Assn. Op. Phone: 907 246-4261 Op. Fax: 907 246-6242 Rep.: Nick Scales E -Mail drillsup@nea.coop Well Name: Naknek - G#1Stk #2 PTD # 2215 (DNR) Operation: Drlg: X Test: Initial: Test Pressure: Rams: 250-4500 MISC. INSPECTIONS: Test Result Location Gen.: P Well Sign Housekeeping: P Drl. Rig PTD On Location P Hazard Sec. Standing Order Posted P Misc Workover: Explor.: X Size/Type Weekly: X Bi -Weekly 0 Annular: 250-3500 Valves: 250-4,500 Annular Preventer TEST DATA FLOOR SAFETY VALVES: Test Result Quantity Test Result P Upper Kelly 1 P P Lower Kelly 1 P P Ball Type 1 P NA Inside BOP 1 P N/A FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result Stripper 0 N/A NA Annular Preventer 1 13-5/8" P #1 Rams 1 5" P #2 Rams 1 Blind P #3 Rams 1 5" P #4 Rams 0 N/A NA #5 Rams 0 N/A NA #6 Rams 0 N/A NA Choke Ln. Valves 1 41/16 P HCR Valves 1 41/16 P Kill Line Valves 2 31/8 P Check Valve 0 N/A NA BOP Misc 0 N/A NA CHOKE MANIFOLD: Quantity Test Result No. Valves 11 P Manual Chokes 2 P Hydraulic Chokes 1 P CH Misc 0 NA MUD SYSTEM: Visual Alarm Trip Tank P P Pit Level Indicators P P Flow Indicator P P . Meth Gas Detector P P , H2S Gas Detector P P . MS Misc NA NA Quantity Test Result Inside Reel valves 0 NA ACCUMULATOR SYSTEM: Time/Pressure Test Result System Pressure 3000 P Pressure After Closure 2000 P 200 psi Attained 16 P Full Pressure Attained 117 P Blind Switch Covers: All stations Yes Nitgn. Bottles (avg): 8 @ 2250 ACC Misc 0 NA Test Results Number of Failures: 0 1 Test Time: 12.0 Hours Repair or replacement of equipment will be made within 3 days. Notify the North Slope Inspector 659-3607 follow with written confirmation to Supervisor at: jim.regg@alaska.gov Remarks: No failures during testing. 24 HOUR NOTICE YES X NO Date 2/7/10 Time 1300 Test start 1800 Finish PB 10/22/09 Waived By Jeff Jones Witness BOP Naknek Rig 7 02-09-10.xls Test Results Number of Failures: 0 Test Time: 11.0 Hours Repair or replacement of equipment will be made within 3 days. Notify the North Slope Inspector 659-3607 follow with written confirmation to Supervisor at: jim.regg@alaska.gov Remarks: No failures during testing. 24 HOUR NOTICE GIVEN YES X NO Date 1/21/10 Time 1000 Test start 1900 Finish PB 10/22/09 Waived By Jim Witness 2010-0123_BO P_N EA7_Naknek_G-1. xis STATE OF ALASKA 10/22/09 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report w t lel t® Submit to: iim.rega(Malaska.gov doa.aogcc. Prudhoe. bay(M-alaska. gov Phoebe. brooks(&-alaska.pov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 1/23/10 Rig Rep.: Chad Patton Rig Phone: 907 246-3651 Rig Fax: Operator: Naknek Elect. Assn. Op. Phone: 907 246-4261 Op. Fax: 907 246-6242 Rep.: Nick Scales E -Mail drillsupCcDnea.coo2 Well Name: Naknek - G#1Stk #1 PTD # 2215 (DNR) Operation: Drlg: X Workover: Explor.: X Test: Initial: Weekly: X Bi -Weekly Test Pressure: Rams: 250-4500 - Annular: 250-3500 Valves: 250-4,500 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type i P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 N/A NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 Blind P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 N/A NA MS Misc NA NA #5 Rams 0 N/A NA #6 Rams 0 N/A NA Quantity Test Result Choke Ln. Valves 1 41/16 P Inside Reel valves 0 NA HCR Valves 1 41116 P Kill Line Valves 2 31/8 P Check Valve 0 N/A NA ACCUMULATOR SYSTEM: BOP Misc 0 N/A NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1850 P Quantity Test Result 200 psi Attained 17 P No. Valves 11 P Full Pressure Attained 103 P Manual Chokes 2 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2300 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 0 Test Time: 11.0 Hours Repair or replacement of equipment will be made within 3 days. Notify the North Slope Inspector 659-3607 follow with written confirmation to Supervisor at: jim.regg@alaska.gov Remarks: No failures during testing. 24 HOUR NOTICE GIVEN YES X NO Date 1/21/10 Time 1000 Test start 1900 Finish PB 10/22/09 Waived By Jim Witness 2010-0123_BO P_N EA7_Naknek_G-1. xis 0 0 Davies, Stephen F (DOA) From: Slemons, Jonne D (DNR) Sent: Friday, January 22, 2010 8:55 AM To: Davies, Stephen F (DOA) Cc: Saltmarsh, Arthur C (DOA); Foerster, Catherine P (DOA); Houle, Julie (DNR); Hartz, John D (DNR); Peterson, Shaun (DNR) Subject: RE: Naknek G-1 well i r-iik—r^; ,hIifh tiq- aun aizni if fhiq t;rlir; morning_ Tilr� jnfnrmati,,in }rrni t requested Ylpl('grnf is not confidential, and I believe you ..: _:.m _ _ _ .. _ _ _ _- - - - - a fl .liellp T'rI NInI i TI.. .^: :. •',�� '^I ..}.. .�"I �..ti... ,..L.�...; :.,.4 ^:.. e':^: .. L�;. v. rL,^t:t .. .�:... ...l:..f .. L:..�I t ... Ycm n t;1C'VV'.. ._atc) ?i!}.r i.7U�iiii aa_t: ii i l' vi n!aio- Si �t-luiu sc.i, i ilii 1!7'7E' n^ From: Peterson, Shaun (DNR) Sent: Thursday, January 21, 2010 3:40 PM To: Davies, Stephen F (DOA) Cc: Saltmarsh, Arthur C (DOA); Foerster, Catherine P (DOA); Slemons, Jonne D (DNR); Houle, Julie (DNR); Hartz, John D (DNR) Subject: RE: Naknek G-1 well Steve- Naknek G-1 well surface location coordinates (from Permit to Drill #2215) dated 08-11-2009: 58.69902 N 156.50394 W There appears to be no confidentiality requirement for this well. Thanks- Shaun From: Davies, Stephen F (DOA) Sent: Wednesday, January 20, 2010 4:40 PM To: Peterson, Shaun (DNR) Cc: Saltmarsh, Arthur C (DOA); Foerster, Catherine P (DOA) Subject: FW: Naknek G-1 well Shaun, Art and I will assign an API number to this well. Can you provide the surface location coordinates? 0 AOGCC will carr basic data about the well our internal and online databases that we tr Y ack for the OCS wells (name, permit to drill, number, API number, operator, location, d h, well type and status). Please let us know if any of these data elements are confidential. Thanks, Steve Davies AOGCC 793-1224 4�usfiae From: Peterson, Shaun (DNR) �S = Sent: Wednesday, January 20, 2010 3:52 PM To: Foerster, Catherine P (DOA) Subject: RE: Naknek G-1 well EX -F, Lyles 'T/ 7 S 1� 4--)1 5.10. bc.I S 1 �� 7 Z� � I ClL /L. c''1=� yak � yiL1 Cathy- kt� - Thanks for the quick response. If DNR does issue an API number, would AOGCC begin tracking it as it does OCS wells? Thanks (again)- Shaun From: Foerster, Catherine P (DOA) Sent: Wednesday, January 20, 2010 3:46 PM To: Peterson, Shaun (DNR) Cc: Seamount, Dan T (DOA); Norman, John K (DOA); Davies, Stephen F (DOA) Subject: RE: Naknek G-1 well Shaun, We assign API numbers to wells that we permit. Since this well is being drilled under your permit, we did not assign it an API number. However, it's an interesting question. Typically the permitting agency assigns the API number (for instance, the feds do for wells drilled in the OCS). I would think that DNR should issue the number. If you're interested in assigning one (and I think that's a good idea), Steve Davies would be glad to help you. Cathy From: Peterson, Shaun (DNR) Sent: Wednesday, January 20, 2010 3:38 PM To: Foerster, Catherine P (DOA) Subject: Naknek G-1 well Cathy - It has recently come to my attention that the Naknek G-1 well for which the Division of Oil and Gas issued the original permit to drill does not have an assigned API number. Can you explain why that is and whether AOGCC intends to assign an API number in the future? Thanks- Shaun STATE OF ALASKA 10/22/09 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report �I16 �d Submit to: Iim.reggtcDalaska.gov ` doa.aoacc.Prudhoe. bay(a-alaska.gov Phoebe. brooks(cDalaska.gov Contractor: Naknek Electric Assn. Rig No.: 7 DATE: 1/15/10 Rig Rep.: Chad Patton Rig Phone: 907 246-3651 Rig Fax: Operator: Naknek Elect. Assn. Op. Phone: 907 246-4261 Op. Fax: 907 246-6242 Rep.: Nick Scales E -Mail drillsuD@nea.coop Well Name: Naknek - G#1Stk #1 PTD # 2215 (DNR) Operation: Test: Test Pressure: Drlg: X Initial: Rams: 250-4500 Workover: Weekly: X Annular: 250-3500 Explor.: X Bi -Weekly Valves: 250-4,500 MUD SYSTEM: MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: 0 Test Result Test Result Quantity Test Result Location Gen.: P Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P Lower Kelly 1 P PTD On Location P Hazard Sec. P Ball Type 1 P Standing Order Posted P Misc NA Inside BOP 1 P P P #3 Rams FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 N/A NA Trip Tank P P Annular Preventer 1 13-5/8" P Pit Level Indicators P P #1 Rams 1 5" P Flow Indicator P P #2 Rams 1 Blind P Meth Gas Detector P P #3 Rams 1 5" P H2S Gas Detector P P #4 Rams 0 N/A NA MS Misc NA NA #5 Rams 0 N/A NA #6 Rams 0 N/A NA Quantity Test Result Choke Ln. Valves 1 41/16 P Inside Reel valves 0 NA HCR Valves 1 41/16 P Kill Line Valves 2 3 1/8 P Check Valve 0 N/A NA ACCUMULATOR SYSTEM: BOP Misc 0 N/A NA Time/Pressure Test Result System Pressure 3000 P CHOKE MANIFOLD: Pressure After Closure 1500 P Quantity Test Result 200 psi Attained 15 P No. Valves 11 P Full Pressure Attained 114 P Manual Chokes 2 P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 P Nitgn. Bottles (avg): 8 @ 2250 CH Misc 0 NA AGC Misc 0 NA Test Results Number of Failures: 0 Test Time: 7.0 Hours Repair or replacement of equipment will be made within 3 days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Supervisor at: jim.regg@alaska.gov Remarks: No failures during testing. Notified North Slope Inspectors by voicemail. GIVEN YES X NO Date 1/13/10 Time 1400 Test start 0200 Finish 0900 PB 10/22/09 Waived By Witness 2010-0115 BOP_NEA7_Naknek_G-1.xls NAKNEK ELECTRIC ASSOCIATION, INC. PO57 OFF7CE BOX 718- NAKNEX, ALASKA M-"- PHONE' W;') Zea W6 r • )rAX 1sn7t 246'6262 December 29, 2009 Ms. Joanne Slemons Alaska Department of Natural Resources Division of Oil & Gas 550 W 7th Ave, Ste 800 Anchorage, AK 99501-s560 RE: Request for Amendment to Drilling Plan - Geothermal Permit to Drill #2215 Well Naknek-G #1 5 Miles NE of King Salmon, AK T17S, R44W, SM, Sec 14, E1/2SW1/4 & Sec 23, NEi/4NWi/4 Dear Ms. Slemons: Naknek Electric Association, Inc. ("NEA") requests an amendment to the Naknek-G #I Drilling Plan, as approved in Amended Geothermal Permit to Drill #2215. On December 21, 2009, NEA made the decision to temporarily suspended drilling operations at the Naknek-G #I geothermal exploration well and develop a side-track deviation plan after hole conditions deteriorated at 10,545 feet. The well was temporarily suspended at 1200 hours on December 22, 2009. Since that time, NEA has been working with GeothermEx and Baker Hughes to develop a Deviation Plan and secure the necessary equipment at the King Salmon project sight to undertake a side-track of the well from 9,864 feet TVD to the permitted TD at 14,000 feet TVD. As outlined in the attached Deviation Plan, NEA proposes to side-track the Naknek-G #1 well on a hole azimuth of S30°E commencing at 9,864 feet TVD, building to a maximum deviation angle of 7.5, and continuing to drill to a depth of 14,000 feet TVD. Total deviation of the bottom -hole location from the original projected bottom -hole will be approximately 470 feet south and 171 feet east; placing the amended bottom -hole approximately 430 feet from the eastern boundary of the NEA allotment. Coordinates of the new bottom -hole location will be 58.703sN, 156.5077W (NAD83). The casing plan will remain the same as that outlined in the original drilling program, as changes will not be necessary in order to accommodate the side- track operations. NEA will be ready to re -start drilling operations on January 5, 2010; and will be prepared to commence side-track operations on January 7, 2010. Attached to this letter you will find a copy of the original Amended Geothermal Permit to Drill #2215 and the final Deviation Plan, which includes a Clearance Report, Planned Wellpath Report, a Vertical Section of the proposed Naknek-G #1 side-track (Naknek G-1 ST #1), and a Wellpath Reference Plot in plan view. NEA proposes no additional changes to the Drilling Plan as originally defined in the Amended Geothermal Permit to Drill #2215. 0 • If you require any additional information, please contact Donna Vukich at (907) 246-4261 or Dick Scales, Drilling Supervisor, at (907) 246-3651 at your earliest convenience. NEA is eager to re -start drilling operations and continue to drill ahead to the completion of our first geothermal exploration well. Please don't hesitate to call if there is anything we can do to assist the Department of Natural Resources in its review of this request. Sincerely, Donna Vukich General Manager Attachments: Final Deviation Plan —Naknek-G #1 Copy of Amended Geothermal Permit to Drill 2215 GOVERNMENT $15M for Alaska geothermal projects The Obama administration's economic stimulus package is providing S 15 million in funding through the U.S. Department of Energy for geothermal projects in the State of Alaska, U.S. Sen. Mark Begich, D -Alaska, announced Oct. 29. The funding, which comes from the American Recovery and Reinvestment Act, includes $12.3 million for Naknek Electric Association's geothermal project near King a mon; The Alaska funding comes as million to the University of Alaska Fairbanks part of a DOE distribution of for testing of geothermal exploration tech- niques for use at Pilgrim Hot Springs, near $338 million in stimulus Nome; and S2.1 million to Alaska -based package geothermal funding Trabits Group LLC for the development of for 123 projects in 39 states, cement that can be used in high-temperature to recipients including private geothermal wells. industry, academic "Alaska already leads the nation in pro- institutions, tribal entities, ducing electricity from the lowest tempera- local governments and DOE's lure geothermal waters. However, our efforts national laboratories. to use this abundant energy source have bare- ly broken the surface of potential energy pro- duction," Begich said. "The Department of Energy is right to look to our state when developing new clean energy technologies. Alaskans have as much to gain from the development of affordable and clean energy technology as anywhere in the United States " Matching funds required The Alaska funding comes as part of a DOE distribution of $338 million in stim- ulus package geothermal funding for 123 projects in 39 states, to recipients includ- ing private industry, academie institutions, tribal entities, local governments and DOE's national laboratories. The grants will be matched more than one-for-one with an additional $353 million in private and nonfederal cost -share funds, DOE says. "The United States is blessed with vast geothermal energy resources, which hold enormous potential to heat our homes and power our economy," said Energy Secretary Steven Chu. "These investments in America's technological innovation will allow us to capture more of this clean, carbon free energy at a lower cost than ever before. We will create thousands of jobs, boost our economy and help to jumpstart the geothermal industry across the United States." —ALAN BAILEY aANYWHERE IN ALASKA, THE LOWE Z cc W 24-HOUR ON -DEMAND CHARTER & CARGO SERVICE North Slope in 2 Hours, Dutch Harbor in 3 Hours, Crews and Freight 24/7 OLast minute meetings on your time —. Oil Field Passenger/ Freight Support Passenger Passenger 8 Cargo Service Z1 Z er Super 18 Passenger Super DC -3 Service w/Cargo . Nd Depart from our passenger lounge or our Anchorage Airport gate TRANfNORTNERN AVIATION F 1y no no thmug hoot Alaska since 1994 0.0 .... d. 245-1879 / TRANSNORTHERN.COM PETROLEUM NEWS • WEEK Of NOVEMBER 15, 2009 • F I N A N C E & E C 0 N 0 N Y Saskatchewan la ,4eal-making hot spot By GARY PARK or Petroleum News utside\dah British Columbia's siz- zling tiand shale gas prospects, the hottest pif oil patch real estate in Canada thdays is southern Saskatchewae by the Bakken oil field. It's the scef a avyweight contest between Petakken formed from a C$2.4 billionrger of nobank Energy and Resourced Tri Star it & Gas) and Crescent Poinergy, win has pushed its 2009 deaaking to al ost C$1.25 billion. Trying toove up the r Ings isGlamis Resos, which has de fiveinvestments ling C$535 mill n thisyear. The attracis simple: Powere bynew technolthe industry has dri edmore than 1wells in the last fr eyears, raisingin-place by abouttenfol to almost 5 billion barrels and current out- put to 65,000 barrels per day. Crescent Point has locked up abou two-thirds of the Bakken land and has similar share of the Lower Shaunav , which contains heavier crude. TriAxon latest deal Its latest deal on Nov. 9 is an a Bement to take over privately owned riAxon Reso/ane es for C$249 milli , adding 1,40rrels of oil equivale per day to its th-quarter output of out 41,000 hoe pday. It also corralled 12 million boe of provand probabl reserves (in Saskewan and Al rta); 91,000 net acres undeveloped nd, 40,00 acres of whicre in the Ba en and Viking plays of Satchewan; 9 net drilling locationsd CS99 lion in tax credits. Ttrans. ion works out to CS1443 per owing boe and CS16.10 a boe the pr ed and probable reserves. Ccent int Chief Executive Officer Scottaxb g said TriAxon has aggres- sivelu ued high quality plays over recenrs with a significant recovery factod established leading positions in Bakkand Viking, establishing a base for "nificant production and reserves Crescent Point is making no secret Tisdale credited new h 'zontal drilling and fracture t chnology with making rocks p fously seen as uneconomic ca idates for of the fact that its bu ng binge is not over. Chief Financial fficer Greg Tisdale said the company sees "some consolida- tion opportune es available" in the Saskatchewan. ays, suggesting the list of potential take er targets is lengthy. "We do e a critical mass in all our core Vle " a saidTisedited new horizontal drilling and frchnologywith making rocks previenasuneconomic candidates fororm Urdpdrig the potential riAxon Chief Executive Officer Jeff tponja said the basin is now less about xploration and more about returning to areas where there are known hydrocarbon ecumulations and using science to unlock e potential. e said that is the "essence about what we elieve the new junior (companies) are all a ut now." Tn xon did not even require Crescent Point t dip into the proceeds from a CS575 illion share offering which it c0mplet ov.3. Scotia pital analyst Jeremy Kaliel said in a r earth note that "numerous opportunities are currently emerging across the (Sas tehewan) basin." He said Cres at Point is ideally posi- tioned to make quisitions, "given the rapid emergence of ew resource plays and the company's cost if capital advantage over most of its peers. Jeff Martin, a Peters Co. analyst, esti- mated Crescent Point's ing wells would break even at an oil price CS64 per bar- rel. On a more cautionary ote, Dean Orrico, chief investment fficer at Middlefield Capital, warned a t the per- flowing-boe acquisition cost bein paid by Crescent Point. He said it is now up to manag nt to focus on what it has, drill the prop ies and prove that what they are paying is s- tified. • Peak Civil Technologies "Imagineering Brought to Earth" Providing creative solutions to non-traditional construction problems. Currently, Peak Civil Technologies offers the following services to its clients: Specialty Coatings ( Secondary Containment ( Concrete/Foundation Lifting & Repair Slab Jacking I Helical Piers/Push Piers/Micro-Piles I Dust Suppression Soil Stabilization I Injection Grouting .. Dave Brangan, General Manager 12525 C Street, Suite 201, Anchorage, AK 99503 (907) 263.7071 Fax (907) 263-7070 Cell (907) 317.6709 1 www.peakalaska.com Tucker, Brandon S (DNR) From: Peterson, Shaun (DNR) Sent: Wednesday, November 18, 2009 1:49 PM To: Tucker, Brandon S (DNR) Subject: Naknek G-1 well data delivery request Please provide copies of all Naknek G-1 well data that the Resource Evaluation Section has in its possession to AOGCC Commissioners Norman, Seamount, and Foerster at your earliest convenience per tonne's request below. If not otherwise noted, mark these data as confidential prior to delivery. Please let me know when this task has been completed, including a list of items provided. Thanks -Shaun From: Slemons, Jonne D (DNR) Sent: Wednesday, November 18, 2009 1:17 PM To: Peterson, Shaun (DNR) Cc: Houle, Julie (DNR) Subject: FW: re. Request for Drilling past 8,000' Shaun, could you coordinate with Corrie and/or Brandon to send copies of all Naknek Electric data to Commissioners Norman, Seamount and Foerster at AOGCC, as requested by Commissioner Foerster? Let me know (or cc me) when this is accomplished. The data is considered confidential. Thank you Jonne jbc�-0qCv 1 DECEIVED NOV 2 3 2009 Alaska Oil & Gas Cons. Commission Anchorage � CONFIDENTIAL � fell 6� Management Summary:Reejtt :.,,.: iknek Elm% Association; .lric. Well ID: 041 t=1$tfi: t 3altnCirl sept ziq, Co�nnt:17S Ftf1 : ':,{�{}Cllttjt i to Bc1ji,��t ttg Rpt. No. Date MD (ft) TVD (ft) Management Summary 47 01 -Oct -09 4,295 4,295 Drilled with losses (40-80 bph) to 4,230' md. Noted Top Drive hydraulic leak. CONFIDENTIAL ao9- -'6 Ig130?- Pulled up into casing. Repair leak. RIH. Prepare to drill ahead. 48 02 -Oct -09 4,540 4,540 Drilled ahead to 4,320' md. Repaired mud line suction valve. Drilled ahead to 4,540' md. Managing losses @ 60-80 bbls/hr. Monitoring mud temperature. Total mud losses to well = 3,800 bbls. 49 03 -Oct -09 4,808 4,540 Directionally drilling ahead @ 4,808' md. ROP avg 19 ft/hr. Mud Losses @ +/ 150 bbls/hr. Total Mud losses to well 7,190 bbls. 50 04 -Oct -09 4,840 4,840 Directionally drilled ahead to 4,840' md. Circulated & condtioned mud. Built LCM pill. POH to 3,800' md. Spot LCM pill. POH. Stand back drill collars. Service BHA. RU for BOP test. Set test plug. Test BOP's. Total losses to well = 11,755 bbls. 51 05 -Oct -09 4,980 4,980 Complete BOPE testing as per AOGCC Regulations. Jeff Jones, AOGCC PI, waived witnessing. NOV Mechanics repaired hydraulic line on top drive. Pick up 5" drill pipe. Precautionary wash & ream to bottom. Drill 14-3/4" open hole section. Monitor wellbore for fluid losses. 52 06 -Oct -09 5,100 5,100 Drill 14-3/4" open hole section to 5,100'. Lost total returns. Pull out of hole. Stand back BHA. Run in hole with open ended drill pipe. Mix and pump 3- 150 bbl 50 ppb LCM pills. Observed full returns after 3rd pill was pump. Pull out of hole to make up BHA. 53 07 -Oct -09 5,100 5,100 Pump 3rd 150 bbl of 50 ppb LCM pill, observed 30% increase in returns to surface.Pull out of hole with drill pipe. Make up BHA #5. Put top drive gen set on-line. run in the hole to 2,877'. Attempt to circulate, drill string plugged off with LCM. Pull out off hole and lay down BHA #5. 54 08 -Oct -09 5,104 5,104 Trip in the hole with BHA #6. Repair mud pumps and top drive. Wash and ream to bottom at 5,100'. 55 09 -Oct -09 5,216 5,216 Drilled 14-3/4" open hole section from 5,100' to 5,216'. Fluid losses to open hole at 115 bph avg. Continue to monitor well. 56 10 -Oct -09 5,280 5,280 Continue drilling 14-3/4" Open hole section. Monitor wellbore for fluid losses. 57 11 -Oct -09 5,556 5,556 Drilled 14-3/4" open hole section from 5,280' to 5,556'. Lost 3,500 bbl of fluid to well bore while drilling. Drill string parted at 5,089'. Test BOPE, 58 12 -Oct -09 5,556 5,556 Make up fishing BHA. Recover fish. Pull out of hole with fishing BHA. 59 13-0ct-09 5,556 5,556 Recovered fish from 5,089'. Clean out plugged drill string. Lay down HWDP for inspection. Pick up 6-1/2" drill collars to replace HWDP. Run in the hole back to bottom. 60 14 -Oct -09 5,858 5,858 Drill 14-3/4" open hole section while monitoring well bore. Fluid losses at 25 bph 61 15 -Oct -09 5,922 5,922 Drill 14-3/4" open hole section to 5,922'. Pull out of hole to repair and replace top drive traction motors. 62 16 -Oct -09 5,922 5,922 Remove Traction motors from Top Drive. Rig repairs. 63 17 -Oct -09 5,922 5,922 Work with NOV Top Drive Technician. Clean parts and prepare top drive for installation of new traction motors. Monitor wellbore for fluid losses. 64 18 -Oct -09 5,922 5,922 Prep Top Drive for installation of new traction motors. Monitor well bore, no fluid losses, well static. 65 19 -Oct -09 5,922 5,922 Install new traction motors on top drive. Test BOPE. 66 20 -Oct -09 5,922 5,922. Complete installation of new traction motors on top drive. Install water line into ditch. 67 21 -Oct -09 5,922 5,922 Complete Top Drive repairs. Test BOPE. Make up BHA #8. Run in the hole to 2,790'. Slip and cut drilling line. 68 22 -Oct -09 6,132 6,132 Drill 14-3/4" open hole section. 69 23 -Oct -09 6,455. 6,455 Drill 14-3/4" open hole section. Completed top drive repairs. Sent NOV Mechanic back to town. 70 24 -Oct -09 6,650 6,650 Drill 14-3/4" open hole. Trip for wash out in drill pipe. Resume drilling operations. nted- 20.54 28 -Nov -09 RIMBase Page: 1 of 2 CONFIDENTIAL ao9- -'6 Ig130?- 0 CONFIOENTIAL 0 N Managenient.St rrimary,R�poirt r° Q:.' ":1lcriielt.Ela W Associat ,.. �. W11 Ma Well tme• G-1 t3 King, Salm Rpt. No. Date MD (ft) ND (ft) Management Summary 71 25 -Oct -09 6,873 6,873 Fish BHA Assembly. 72 26 -Oct -09 6,873 6,873 Recover fish. Break down overshot and drilling BHA. Make up clean out assembly. 73 27 -Oct -09 6,873 6,873 Laid down Fish. Cleaned out BHA (Fish). Serviced Rig. PU & MU Bit (RR# 5) & BHA RIH for Clean out run. Hole packing off from shoe to 3,331' md. 74 28 -Oct -09 6,920 6,920 Circulated, built & conditioned mud to handle mud losses. Reamed back to bottom @ 6,873' md. Drilled ahead with losses to 6,920' md. 75 29 -Oct -09 6,920 6,920 Drill ahead to 6,917' md. Circulate & condition mud & hole. POH. RU & tset BOPs. RU & run logs. 76 30 -Oct -09 6,917 6,920 Check fluid level @ 189' md. RU & run E -line logs. PU & MU BHA for drilling ahead. 77 31 -Oct -09 7,200 7,200 Ran in hole. Wash & reamed to bottom @ 6,917' md. Drilled ahead and managed mud losses CONFIOENTIAL Printed: 20:54 28 -Nov -09 RIMBase Page: 2 of 2 • Tlc{+ 3 DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS November 12, 2009 Naknek Electric Association, Inc. P.O. Box 118 Naknek, Alaska 99633 Attn: Ms. Donna Vukich And Corri Feige The Castle Mountain Group, Inc. P.O. Box 1208 19900 E. Chickaloon Rd. Chickaloon, AK 99674 C RE: Amended Geothermal Permit to Drill 2215 Well Nnknek-G#1 5 Miles NE of King Salmon, AK T 17S, R 44W, SM, Sec 14 E1/2SW1/4 & Sec 23, NEI/4NW1/4 Dear Ms. Vukich: SEAN PARNELL, GOVERNOR 550 WEST 7m AVE, SUITE 800 ANCHORAGE, ALASKA 99501 PHONE. (907) 269-8800 FAX (907) 26944 The Alaska Department of Natural Resources, Division of Oil and Gas, in accordance with Alaska Statute 38.05 and Alaska Statute 41.06 and Alaska Geothermal Regulations (11 AAC 87) grants authorization to continue geothermal drilling operations described in the geothermal permit to drill application dated May 28, 2009, and amendments dated August 4, 2009, and October 20, 2009, for the above referenced project as modified by the mitigation measures and stipulations in Attachment (1) [Final/Revised August 11, 2009] and Attachment 2 [November 12, 2009] to this letter. Approval is contingent upon compliance with all mitigation measures and stipulations found in Attachments (1) and (2). The permit as approved includes technical changes in the application documents as noted in new figures Well NG -1 Pressure Gradient Vs. Depth, Figures 5, 6, 7, 8, dated August 4, 2009, and the Supplemental Discussion dated June 17, 2009. 1. A Status Report for the activities conducted under this approval must be filed with this office on May 1 and November 1 each year, from the date this approval is issued and until a Completion Report is filed with the Division. Failure to file in a timely manner may result in revocation of this permit approval. The completion report shall contain a statement describing clean-up activities conducted, the method of debris disposal, and a narrative description of known incidents of surface damage. "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." Geothermal Permit to Drill 2215 Revised/Amendment: November 12, 2009 2. The applicant shall defend, indemnify and hold the State of Alaska harmless from and against any and all claims, damages, suits, losses, liabilities and expenses for injury to or death of persons and damage to or loss of property arising out of or in connection with the operations authorized under this approval and conducted by the applicant, its contractors, subcontractors and their employees. 3. Amendments and modifications to this approval require 15 -day advance notice and must be approved in writing by the Department of Natural Resources. 4. The applicant shall inform and ensure compliance with any and all conditions of this approval by its employees, agents and contractors, including subcontractors at any level. 5. The Commissioner of the Department of Natural Resources may require that an authorized representative be on-site during any operations conducted under this approval. This stipulation is required to ensure that the Divisions of Oil and Gas, and Mining, Land and Water meet their statutory responsibilities for monitoring authorized activities. 6. Rehabilitation shall be completed to the satisfaction of the Commissioner. 7. Notification. The applicant shall notify the Department of Natural Resources of all spills that must be reported under 18 AAC 75.300 under timelines of 18.AAC 75.300. All fires and explosions must be reported to DNR immediately. The DNR 24 hour spill report number is (907) 451-2678; the fax number is (907) 451-2751. The DEC oil spill report number is (800) 478-9300. DNR and DEC shall be supplied with all follow-up incident reports. This drilling program as described is consistent with the Alaska Coastal Management Program and the Bristol Bay Coastal District Plan. This Geothermal Permit to Drill Approval is issued in accordance with Alaska Statute 38.05, Alaska Administrative Code 11 AAC 87, and Alaska Statute 41.06. A person affected by this decision may appeal or request reconsideration, in accordance with 11 AAC 02. Any appeal or request for reconsideration must be received by December 2, 2009 and may be mailed or delivered to Tom Irwin, Commissioner, Department of Natural Resources, 550 W 7'" Avenue, Suite 1400, Anchorage, Alaska 99501; faxed to 1-907-269-8918, or sent by electronic mail to dnr.appealsaa,alaska.gov. This decision takes effect immediately. If no appeal or request for reconsideration is filed by the appeal deadline, this decision becomes a final administrative order and decision of the department on the 31 st day after issuance. An eligible person must first appeal this decision in accordance with 11 AAC 02 before appealing this decision to Superior Court. A copy of 11 AAC 02 may be obtained from any regional information office of the Department of Natural Resources. This approval signifies only that the State of Alaska has no objection to the operations outlined in the plan of operations application. It does not constitute certification of any property right or "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." 2 Geothermal Permit to Drill 2215 Revised/Amendment: November 12, 2009 land status claimed by the applicant nor does it relieve the applicant of responsibility to obtain approvals or permits from other persons or governmental agencies that may also be required. All stipulations contained in the permit to drill remain in full force and effect for the duration of all related activities. If activities have not commenced, this approval expires on November 12, 2011. Failure to comply with the terms and conditions outlined in the permit, Attachment (1), Attachment (2) and this authorization may result in revocation of this Geothermal Permit to Drill. Data submittal address for ADNR Division of Oil and Gas: Corazon Manaois, Natural Resource Tech III Alaska Department of Natural Resources - Division of Oil and Gas State of Alaska 550 W. 7h Avenue, Suite 800 Anchorage, AK 99501-3510 Telephone: (907)269-8772 Fax: (907)269-8942 Email: corazon.manaois(a.alaska.gov Data submittal address for AOGCC: Jody Colombie Alaska Oil and Gas Conservation Commission 333 W. 71' Ave., Ste 100 Anchorage, AK 99501 Telephone: (907) — 276-7542 Fax: (907) — 276-7542 Email: Jody.Colombie@alaska.gov Sincer om Irwin Commissioner Attachments: Geothermal Permit to Drill Attachment (1) [Final/Revised: August 11, 20091 Attachment (2) [November 12, 2009] "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskan& " Geothermal Permit to Drill 2215 Revised/Amendment: November 12, 2009 ecc: Jodi Delgado-Plikat DCOM Gary Mendivil, ADEC Michael Walton, Roy Ireland, ADNR DMLW, Water Resources Rod Combellick, ADNR DGGS Daniel T. Seamount Jr., Cathy Foerster, Winton Aubert, AOGCC Matt Rader, Jonne Slemons, Kevin Banks, Kurt Gibson, Jeanne Frazier, ADNR DO&G "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans 4 Permit No. 2215 — Geothermal Permit to Drill Final/Revised: August 11, 2009 Attachment (1) Permit to Drill Mitigation Measures and Stipulations 1. The operator will drill the known interval of glacial gravels to 400 feet with a 30 - inch flow nipple, them run and cement the 22 -inch casing to 400 feet. a. Install a 21-1/4 inch, 2M blow out prevention equipment (BOP and drill out the 22 -inch casing to the flow collar. At this point, pressure test the casing and the 21 % inch BOPE. Drill below the 22 -inch casing down to 3,000 feet. b. At 3,000 feet, set and cement the 16 -inch casing, install the 16 % inch, 5M BOPE, test the casing and BOPS, and proceed to drill below the 16 -inch casing to 8,000 feet. c. At 8,000 feet, the operator will provide well and drilling operation information to ADNR to acquire approval to continue drilling deeper than 8,000 feet depth. Permit stipulations for continued drilling and the appropriate casing program will accompany the approval for drilling at that time. 2. The BOPE equipment shall adhere to the following conditions: a. A 30 -inch flow nipple with no BOPE from the ground surface to 400 feet depth. b. A 21 % inch z 2,000 psi BOPE will be used for drilling below the 22 -inch casing from 400 feet to 3,000 feet depth. c. A 16 % inch x 5,000 psi BOPE will be used for drilling below the 16 -inch casing from 3,000 feet to 8,000 feet. d. At 8,000 feet, the operator will provide well and drilling operation information to ADNR to acquire approval to continue drilling deeper than 8,000 feet depth. Permit stipulations for continued drilling and the BOPE operations will accompany the approval for drilling at that time. 3. The BOPE function pressure testing procedures will be carried out as outlined below: a. After cementing each casing string (22 -inch at 400 feet, 16 -inch at 3,000 feet), the corresponding BOPE stack for each stage will be installed. For each case, the BOPE stack and casing will be pressure tested after drilling of the cement below the float collar and before drilling off the float shoe. The casing testing pressures will be as follows: • Permit No. 2215 — Geothermal Permit to Drill Final/Revised: August 11, 2009 continued, 1.) 22 -inch — 400 psi 2.) 16 -inch —1,000 psi 3.) 11 % inch —1,500 psi (future) 4.) 8 5/8 inch — 2,500 psi (future) b. Every seven days, the BOPE will be function pressure tested per AOGCC regulations against a testing packer. The BOPE function test pressures will be as follows: 1.) 211/4 -inch x 2M — 2,000 psi 2.) 16 -1/4 -inch x 5M — 3,000 psi c. For drilling deeper than 8,000 feet, prior approval from ADNR is required. Permit stipulations for continued drilling and the BOPE testing procedures will accompany the approval at that time. 4. Provide the ADNR and AOGCC with 48 hours advance notice of rig up and each BOPE function pressure test, so that the ADNR/AOGCC representative drilling inspector can inspect the rig or witness the test. 5. All casings will be cemented to surface. Hung casing strings (liners) will be cemented throughout the linerlap. Fresh water aquifers shall be completely isolated from contacting any geothermal or drilling fluids. 6. The shallower water supply well, with an estimated depth of 250 feet (the development well), to be drilled during the construction phase, falls within the standard reporting requirements, and a full well log is therefore required. Standard water well construction practices are required so as to prevent inadvertent water flow between lithologic layers. The well log will be submitted to the Division of Oil and Gas and the ADNR Division of Mining, Land and Water, Water Resources section upon completion of the well. 7. If water in the geothermal exploration well does not meet the definition of geothermal fluid as defined in AS 41.06.060 (2), it is subject to the statutes and related regulations of the Alaska Water Use Act. S. If and when a water right application is filed for the geothermal exploration well, a full .pdf or other electronic well log is to be attached to the water rights application F1 Permit No. 2215 — Geothermal Permit to Drill Final/Revised: August 11, 2009 for reference purposes should future review become necessary. The Well Log Tracking System (WELTS) program requirements would be satisfied with a well log not exceeding 999 ft in depth, with a notification that the actual depth exceeds this limit and a statement as to the final depth reached. 9. The operator must report a release of any oil or hazardous substance in accordance with Alaska Department of Environmental Conservation standard reporting guidelines. These are the types of oil and hazardous substances that may be on site. Chrome -free ligno-sulfonate / lignite products Circulating fluid (must be maintained at a pH of approximately 10) Amine inhibitor to mitigate high corrosion rates Drilling muds (bentonite, caustic soda, lime) (described in Appendix A) Fuel for Well pad (generator facility, fuel for man camp, any hydraulic fluids for equipment and machinery, support vehicles) Cement used in drilling operation 13. Records 11 AAC 87.110 (a) An operator of a well shall keep detailed and accurate drilling and well logs, core records, production and inspection records, and, if taken, appropriately bagged and Identified samples of drill cuttings. (b) The logs for geothermal wells must show the lithologic characteristics and depth of formations encountered; the depths and temperatures of water -bearing and steam -bearing strata; any data obtained about the temperatures, chemical compositions and physical characteristics of fluids encountered; the amount, size, and weight of casing used; and the size, type, and density of perforated intervals. (c) The temperature log must be obtained by either continuous temperature logging or by a comprehensive multiple point temperature survey. (d) The core record must show the depth and character of cores obtained, as determined from the study and analysis of the core. (e) The drilling log must describe in chronological order and on a daily basis all significant operations carried out and equipment used during all phases of drilling. The results of testing blowout prevention equipment must be recorded on the 3 Permit No. 2215 — Geothermal Permit to Drill Final/Revised: August 11, 2009 drilling log and the blowout prevention test form provided. A monthly report of drilling and workover operations which summarizes the daily record of well operation during the previous month must be filed with the department on or before the last day of each month. (f) Records listed in (a) - (e) of this section must be kept at the drill site or local office of the operator, available for inspection at reasonable times by the commissioner, and must be submitted to the department with the completion report required in 11 AAC 87.190. Records and reports shall be kept in the state for five years after the date of well abandonment. (g) Monthly statements required by 11 AAC 87.210, and records of the inspections conducted under 11 AAC 87.250, for the preceding calendar month, must be filed with the department by the last day of each calendar month. (h) Any information filed by the operator with the state in connection with this permit to drill will be available at all times for the use of the state and its agents and contracting personnel. (i) Reporting of geological, geophysical, and engineering data will be kept confidential for 24 months after the completion of the well. A waiver to extend the confidentiality may be requested from ADNR by the operator. AS 38.05, Alaska Land Act. 0) All provisions of AS 41.06 and 11 AAC 87 apply unless otherwise directed by ADNR. (j) This permit to drill does not relieve the applicant of responsibility to obtain approvals or permits from other persons or governmental agencies that may also be required Mailing addresses for well and drilling information submittals for this permit are provided in this permit. 4 Permit No. 2215 — Geothermal Permit to Drill Final/Revised/Amendment: November 12, 2009 Attachment (2) Amendment to Permit to Drill Mitigation Measures and Stipulations 1. All provisions of Attachment 1(August 11, 2009) apply with these additional amendments as follows: 2. The maximum permitted well depth is 12,000 feet Total Vertical Depth (TVD). 3. The 10k -rated blowout prevention equipment (BOPE) must be tested to 4,500 psi (high), In accordance with 20 AAC 25.035 (e) (10). 4. The annular disposal or injection requires an approved AOGCC Form 10-403 AD (Annual Disposal Application), and must be performed in accordance with 20 AAC 25.080. 5. Well abandonment must be in conformance with 20 AAC 25, Article 2. 6. Records 11 AAC 87.110 (a) An operator of a well shall keep detailed and accurate drilling and well logs, core records, production and inspection records, and, if taken, appropriately bagged and identified samples of drill cuttings. (b) The logs for geothermal wells must show the lithologic characteristics and depth of formations encountered; the depths and temperatures of water -bearing and steam -bearing strata; any data obtained about the temperatures, chemical compositions and physical characteristics of fluids encountered; the amount, size, and weight of casing used; and the size, type, and density of perforated intervals. (c) The temperature log must be obtained by either continuous temperature logging or by a comprehensive multiple point temperature survey. (d) The core record must show the depth and character of cores obtained, as determined from the study and analysis of the core. (e) The drilling log must describe in chronological order and on a daily basis all significant operations carried out and equipment used during all phases of drilling. The results of testing blowout prevention equipment must be recorded on the drilling log and the blowout prevention test form provided. A monthly report of drilling and workover operations which summarizes the daily record of well operation during the previous month must be filed with the department on or before the last day of each month. Permit No. 2215 — Geothermal Permit to Drill Final/Revised/Amendment: November 12, 2009 (f) Records listed in (a) - (e) of this section must be kept at the drill site or local office of the operator, available for inspection at reasonable times by the commissioner, and must be submitted to the department with the completion report required in 11 AAC 87.190. Records and reports shall be kept in the state for five years after the date of well abandonment. (g) Monthly statements required by 11 AAC 87.210, and records of the inspections conducted under it AAC 87.250, for the preceding calendar month, most be filed with the department by the last day of each calendar month. (h) Any information filed by the operator with the state in connection with this permit to drill will be available at all times for the use of the state and its agents and contracting personnel. (1) Reporting of geological, geophysical, and engineering data will be kept confidential for 24 months after the completion of the well. A waiver to extend the confidentiality may be requested from ADNR by the operator. AS 38.05, Alaska Land Act. 0) All provisions of AS 41.06 and 11 AAC 87 apply unless otherwise directed by ADNR. 0) This permit to drill does not relieve the applicant of responsibility to obtain approvals or permits from other persons or governmental agencies that may also be required Mailing addresses for well and drilling information submittals for this permit are provided in this permit. 2 Page 1 of 2 Regg, James B (DOA) From: Company Man [drillsup@nea.coop] Sent: Thursday, October 22, 2009 2:30 PM To: Regg, James B (DOA); dvukich@nea.coop; Browne, Susan G (DNR); Slemons, Jonne D (DNR) Cc: Stan Burton; bburke@thermasource.com; dmconnell@thermasource.com; gfriedmann@aes.alaska.com Subject: Re: Variance Request for G-1 for Safety Response to questions: 1. The schematic shows BOPE to 8,000'. NEA waiting on DNR Drilling Permit past 8,000'. 2. Passive 3. 16-3/4" to 7-1/2", 500 psi, seals around and rotates with drillstring, 400 deg, high temperature material, flanges to drilling riser above flow line. 4. Replaced every 200 rotating hours. 5. Inspected on every connection. No pressure test required. This is not a pressure control device. It is a diverter. 6. No impact on BOPE. Not a well control device. Test plug will pass thru with no restriction. 7. Weatherford will provide additional information. Will send when received. Regards, Nick ----- Original Message ----- From: Regg James B (DOA) To: dv_ukic nea_coop ; Browne, Susan G (DNR) ; Slemons, Jonne D (DNR )m;Cc: drillSp@nea.coopSt_Butn; bburkeathermasource.com; dmconnell ct gfried mann�@aes _alaska_com Sent: Thursday, October 22, 2009 9:07 AM Subject: RE: Variance Request for G-1 for Safety Before granting the requested variance (or, determining if the request even constitutes a variance), some specific information about the equipment, installation and operation is needed. The requested information (below) is prefaced with the understanding that DNR will soon be issuing the permit required to drill below 8000 ft in Well G-1, and the Commission will provide DNR technical guidance as done for the well segment currently being drilled. Please address the following: 1) It appears from the request from NEA that this equipment would be for immediate installation (existing BOPE is represented in the schematic); it is unclear why would a "rotating control device" would be needed at this time on BOPE currently being used to drill to 8000 ft; safety concerns as we understand them are for drilling into the potential geothermal zone; also, please note that the current BOPE (shown in the schematic attached to the request) will not suffice for drilling below 8000 feet; 2) Is the rotating control device an active or passive device? 3) Describe the rotating control device size, pressure rating, function, temperature rating, elastomer materials, seals integral to flanges. 4) What type of maintenance will be necessary for a proper functioning rotating control device? 5) What inspections will be performed (and on what frequency)? 6) Will the device be pressure tested? 6) What impact will the device have on BOPE operation, testing procedures, etc.? 7) Provide a more detailed schematic and a cross section showing sealing surfaces and rotating components. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 10/23/2009 U Anchorage, AK 99501 907-793-1236 9 Page 2 of 2 From: Donna Vukich [mailto:dvukich@nea.coop] Sent: Monday, October 19, 2009 6:20 PM To: Browne, Susan G (DNR); Regg, James B (DOA) Cc: drillsup@nea.coop; 'Stan Burton'; bburke@thermasource.com; dmconnell@thermasource.com; gfriedmann@aes.alaska.com Subject: RE: Variance Request for G-1 for Safety Dear Susan: Attached is our request for a variance on our drill permit. Thank you for your consideration. Sincerely, Donna TMktCh Naknek Electric Association PO Box 118 Naknek, AK 99633 (907) 246-4261 (tel) (907) 246-6242 (fax) dvukich@nea.coop www.nea.coop 10/23/2009 F -I L WEATHERFORD WEATHERFORD I...S.,L.P. r "i1 T, LERANM 2 F-MENSQNS ARE jN NCHES PHONF 47,13- 646-886f, 7,.X=t. I.W LA7 0 03C ------- �S`AL E MACTIONS t ;EN 4 62 ANGLES 46 6 9000 Bearing Assembly Bearing Assembly Part Number 990905 Bill of Materials for Bearing Assembly 990906 Item No. Part No. Description Qty. Req. 1 00805980 TOP PROTECTOR RING, 9000 1 ea 2 00791341 Barrel, Outerbarrel 9000 1 ea 3 00489275 Bearing component, inner barrel 9000 1 ea 4 00765214 O-ring -273 WE105 (N BR 70 standard) SAE AS568 2 ea 5 00791350 Packing Box, 9000 2 ea 6 00765211 O-ring -279 WE105 (NBR 70 standard) SAE AS568 2 ea 7 00791351 Plate, cover top packing 9000 1 ea 8 00791353 Packing Plate, Bottom, 9000 1 ea 9 00489277 Bearing, tapered roller Timken LM451349 2 ea 10 00489278 Race, outer Timken LM451310 roller bearing 2 ea 11 00489279 Packing, spacer 9000 2 ea 12 00502071 Washer, lock, 0.3125, hi -collar helical spring 32 ea 13 00502072 Socket Hd Cap Scrw, 5/16-18 X 1 1/2", ASTM A354 Grd. BD, Hex 32 ea 14 00508925 Washer, flat nylon 9000 rotating control head 32 ea 15 00777400 Set screw, hex 0.375-16 x 0.500 cup alloy 818.3 16 ea 16 01151055 Cap screw, FLT CSNK HEXSOC 0.375-16 x 1.500 alloy 818.3 BILK 32 ea 17 00489276 Wear Sleeve, 9000 2 ea 18 00991917 Plug, 1/8" SHPP 150 PSI 2 ea 19 00495772 Coupler, Male, 1/4 NPT, H2-63 1 ea 20 00991936 Plug, 1/4" SHPP teflon coated 1 ea 21 00495778 Nipple, Hex, 1/4 MNPT x 1/4 MNPT 1 ea 22 00791486 Choke, oil 9000 rotating CTRL head 2 ea 23 00508906 Bearing component, 9000 dust cover 1 ea 24 00511730 Seal,9000 WQ Packing 6 ea 25 00990953 Components, bearings thread protector 9000 1 ea WEATHERFORD 7'9� 7rZ,7- v ll�tt -.1- ...... . .... .... ...... THIS DRAWING TO BE USED IN SALES CATALOGUE ONLY. WEATHERFORD U-S-L.P. ; -CE �-NZ7Ti7,7— '! S220 rWl 2`1 SOU! H I C'P-, 5 -All" , ARKANSk DVEN'SiONS fiR, -N PHONE 479-646-886E =AX 47 j*m fsCAL E A N1.1 ERFAV EDGES - v A 4- E F, CIAO' 8F,10C, 19003 MANQAj, 1.41ATE4I,,,�'; L• 91N',H j= 9 Clamp, 16 8000/9000 Manual Clamp Assembly Part Number 817697 Bill of Materials for Clamp Assembly 817697 Item No. Part No. Description Qty, Req. 1 00991192 Pin, hinge, 1-1/2" x 11" 1 ea 2 00215217 Washer, flat 1.500 IN 1 ea 3 00991149 Key, cotter, 1/4" x 3" 1 ea 4 00991920 Grease zert, 1/8" 1 ea 5 00991188 Bolt, swing bolt, 1-1/4" - 7 x12" 1 ea 6 00991185 Nut, hex, swing bolt, 1-1/4" - 7 x7" 1 ea 7 00991180 Bolt, hex head 1"-8 X 6" GRB 2N YL 1 ea 8 00991178 Nut, hex 1"-8 nylon INS lock nut 1 ea 9 00991177 Nut, hex 7/8"-9 jam 2 ea 10 00993584 Eyebolt, 7/8"-9, Shoulder Pattern, Type 2, Style B, A489 2 ea NAKNEK ELECTRIC ASSOCIATION, INC. DOS Or"17l1 c BOX August 18, 2009 Commissioner Cathy Foerster Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: Application for Permit to Drill & C -Plan Exemption Request Well: Naknek-G#1 5 Miles NE of King Salmon, AK T 17S, R 44W, SM, Sec 14 E1/2SW1/4 & Sec 23, NE1/4NW1/4 Dear Commissioner Foerster: Naknek Electric Association, Inc. (NEA) is pleased to submit the attached 10-401 Permit to Drill application and request for C -Plan Exemption for the Naknek-G #1 exploratory geothermal well. This well will be located onshore, approximately 5 miles northeast of King Salmon, Alaska, on a 120 -acre private allotment owned by NEA. The attached Permit to Drill application packet is complete with an independent cover letter and required attachments. The request for a C -Plan Exemption for the Naknek-G #1 is also attached and includes the required geological documentation, as well as a copy of the letter sent to Ms. Betty Schorr at the Alaska Department of Environmental Conservation. The AOGCC is requested to treat as confidential all information in the Application for Permit to Drill (except the Public Information Copy) and the geological and geophysical data provided for consideration as a part of the C -Plan Exemption request, as information in these documents is drawn from research and data proprietary to Naknek Electric Association. If you have any questions or require further information, please contact either myself or the project's Permitting Coordinator, Cord Feige at (907) 232-1192. Sincerely, Donna Vukich General Manager Naknek Electric Association, Inc. 6.2 Enclosures: Application for Permit to Drill with attachments Request for C -Plan Exemption with attachments Copy of C -Plan Exemption Request letter sent to Ms. Betty Schorr, ADEC 01 :y NNAKNEK ELECTRIC ASSOCIATION, INC. UOSTOFci;;EBOX ` .. 4So-,4 ".,_J ar40%_E August 18, 2009 Commissioner Cathy Foerster Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: Application for Permit to Drill Well: Naknek-G#1 5 Miles NE of King Salmon, AK T 17S, R 44W, SM, Sec 14 E1/2SWI/4 & Sec 23, NEI/4NW1/4 Dear Commissioner Foerster: Naknek Electric Association (NEA) hereby applies for a Permit to Drill an onshore geothermal well located in Western Alaska 5 miles NE of King Salmon in Western Alaska. The intended spud date for this well is August 16, 2009. It is intended that the Naknek Electric Association owned NEA Rig #7 be used to drill the well. It should be noted that an APD to drill to 8000' TVD exists on file with the Department of Natural Resources and that the included AOGCC application is seeking approval to drill to 12,000' TVD.' NEA will begin drilling operations in accordance with the active DNR APD, while concurrently addressing the deeper well design thru its application with the AOGCC. In effort to submit thorough and complete AOGCC permit application, NEA has included the well design in it s entirety from surface to 12,000'. Naknek-G#1 will be drilled vertically to approximately 12,000' to investigate the geothermal resource potential of the area. At TD, electric logs and drilling data will determine if the well can be completed as a commercial geothermal source well. It is planned to drill the 400' surface hole without a diverted Multiple test wells have been drilled in the immediate vicinity of the well pad to approximately 400' TVD. Drilling confirmed glacial till and moraine sediments exist at the well -site with no evidence of shallow gas or over -pressured strata. A geological summary detailing shallow gas hazards is included in this application. Drilling waste generated by the Naknek-G #1 will be managed under the authority of the Alaska Department of Environmental Conservation (ADEC). Drill cuttings and residual drilling fluids will be stored temporarily on location under an ADEC approved Temporary Storage Plan. Permanent disposal of the drill cuttings will be achieved through placement of qualified material into an ADEC approved inert waste monofill to be constructed on the NEA allotment. Any cuttings material that does not qualify as inert waste will be permanently disposed of in an ADEC approved drilling waste monofill which would be constructed at the project location. Residual drilling fluids will be permanently disposed of under an EPA Class I Underground Injection Control permit for geothermal injection wells, which will be issued concurrently with an ADEC Disposal Permit. In the event that the Naknek-G #1 well is not successful, residual drilling fluids will be disposed of in the wellbore, per the plugging and abandonment procedures outlined in 11 AAC 87.170. Please find attached the information required by 20 ACC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1. Form 10-401 APPLICATION FOR Permit to Drill per 20 ACC 25.005 (a) 2. Well Prognosis and discussion of operational considerations 3. Location Plat and Drill Pad Layout 4. Drilling Procedure 5. Pressure Information as required by 20 ACC 25.035 (d)(2) including pore pressure, mud weight and fracture gradient curves, offset well mud weight curves, maximum anticipated surface pressure calculations, & casing properties 6. Days vs. Depth Drilling Curve 7. Proposed Wellbore, Wellhead & Completion Schematic 8. Diagrams of the BOP equipment, diverter equipment, riser setup, and choke manifold lay out as required by 20 ACC 25.035 (a) and (b) 9. Cement Program 10. Drilling Fluid Program 11. Fluids Handling System Diagram 12. Rig Layout Diagram The AOGCC is requested to treat as confidential all information in the Application for Permit to Drill (except the Public Information Copy) as information in these documents is drawn from research and data proprietary to Naknek Electric Association. If you have any questions or require further information, please contact Drilling Supervisor Nick Scales at (907.439.3722), or Permitting Coordinator Cord Feige at the following contact: Cord Feige The Castle Mountain Group, Inc. PO Box 1208 19900 E. Chickaloon Rd. Chickaloon, AK 99674 907-232-1192 Email: ags@mtaonline.net Sincerely, V -1-t Donna Vukich General Manager Naknek Electric Association, Inc. NEA Naknek-G#1 Overview and Timetable NEA plans to drill an onshore exploratory well, the Naknek G#1, in the Bristol Bay region of Western Alaska this summer/fall. Naknek G#1 will be located approximately 5 miles east northeast of the village of King Salmon. The well will be drilled from a gravel pad constructed earlier in 2009 with spudding estimated to occur approximately August 16, 2009. The well is planned as a vertical hole. The well will be accessible via plane King Salmon and by road to the well -site. Maps of the drilling location are enclosed in the application. Road and Pad construction occurred June -July of 2009. A Rig # was barged from Seattle, WA earlier this summer with most of the necessary equipment ulars needed to drill the well. A final barge load from Seattle will arrive in Anchorage the first week of September prior to leaving for Naknek. The rig will be supported with personnel and supplies flown into King Salmon and transported to the well -site via permanent/maintained roads. The primary goal of the exploration program is to evaluate the geothermal potential of the wellbore. Upon completion of the drilling and evaluation phase the well will either be plugged & abandoned, completed as a commercial geothermal well, or temporarily shut in and secured if well data warrants further evaluation. Operational Hazards Lost Circulation Of the three pertinent offset wells drilled in the area, none encountered significant lost circulation or hole problems, however, sufficient lost circulation material has been planned for and is on location should it be required. Pressures Anticipated pore pressures are derived primarily from the histories of offsetting wells. As shown on the attached pore pressure plot and maximum anticipated surface pressure (MASP) calculations, the highest expected pressure is at 12000' a ' 5580 psi (8.9 EMW) and will result in a maximum pressure at surface, with a full column of gas, of 380 psi (see included calculations). A 5000psi or greater WP BOP and wellhead system is sufficient t drill this well. Due to the large diameter casing design to accommodate a geothermal completion, three different sets of BOPs will be used to drill this well. Attached are diagrams of each BOP stack including size, pressure rating, and configuration. Abnormally pressured shallow gas is not anticipated. The geology section of this application contains an evaluation of the risk of drilling high pressure zones. Annular BOPE Limitations As shown in the included pore p ure prediction study, the highest pressure expected above the surface casing setting depth isF psi; which is within the 2000 psi workin ure rating of the 2K 21-1/4" BOP. 'Drilling below the 16' surface casing to 8000', the MASP is 6 psi, well within the 5K WP rating of the 16-3/4" BOP. Drilling below the 7-5/8" tieback casing se inside the 11-3/4" liner, the MASP is 4380 psi, well within the 10K WP rating of the 13-5/8" BOP. r • MEMORANDUM TO: Jim Regg P. I. Supervisor • State of Alaska Alaska Oil and Gas Conservation Commission DATE: August 14, 2009 FROM: John Crisp, SUBJECT: Naknek: Electric Association Petroleum Inspector Rig #7 Inspection Geothermal Well Naknek; G#1 August 14, 2009: I traveled to King Salmon, Alaska to perform a Pre -Spud Rig Inspection on Naknek Electric Association (NEA) Rig #7. This Rich Inspection was conducted under the authority of Alaska Statutes 31.05.030 and 31.05.095. Regulations at 20 AAC 25.033, 25.035, 25.037, 25.047, 25.065, 25.066, 25.526, 25.527, and 25.534 provide the regulatory basis for determining compliance. NEA Drilling Supervisor Nick Scales along with Contractor Rig Managers thru Derrickmen are all Well Control Certified as required by 20 AAC 25.527. Rig personnel assured me that the Crown Assembly had been inspected & that the fast line sheave was replaced prior to drill line string up. Derrick inspection had been performed prior to Rig#7 being shipped to Alaska. The Rig Manager stated the Derrick Inspection documentation is on file. Service records for the traveling block (strung up with new drill line & rotary drilling line) will be kept on the rig for inspection. Derrick A -frame supports were found to have been cut & welded to the A -Frame legs. The Rig Manager assured me that the Company that performed Derrick Inspection was aware of these welds & deemed no problems would occur from normal operation during drilling of this well. Photos are attached to this report. National 1320 drawworks looked to be in good condition. Rig braking is a hydromatic system with direct water flow and no tank support. This could possibly be modified prior to RIH with heavy hook loads. Rig engines looked to be in good shape & well maintained as Well as the components for the rig's hydraulic circulating system. A Kelly will be utilized to drill to 400 feet MD. A Varco Top Drive drilling system will be utilized for the rest of the well. Rig Substructure looked to be in good shape. The Rig Manager stated the Rig Substructure Inspection report is available for review if needed. NEA requested & AOGCC agreed that this well would be drilled to a depth of 400 feet without AOGCC required diverter system. A 20 -inch, 2000psi annular preventer with NEA Rig 7 Inspection 8-14-09 21'/4 -inch rams will be installed on the 400 feet of 22 -inch casing. Photos attached to this report. AOGCC regulatory compliance issues: 1. Gas detection equipment was not in compliance with 20 AAC 25.066. The Drilling Supervisor was made aware of the gas detection issues & will have the system in compliance before drilling out of the 22 -inch casing. 2. Inspection of secondary well control accumulator system was performed. This system looked good & the Rig Manager will have volume calculations for accumulator bottles that will assure compliance with 20 AAC 25.035. Mechanic was requested to have gauges available to prove nitrogen pre -charge for accumulator bottles. Nitrogen back-up cascade system will be installed prior to BOPE test. 3. Rig Manager was made aware that secondary well control kill line would need to be flanged from the stand pipe valve to the stack to be in compliance with 20 AAC 25.035. AOGCC Guidance Bulletin 07-01, "Kill Line", was left with the Drilling Supervisor. 4. Choke manifold was inspected. Two hydraulic chokes & one manual choke will be utilized for this well. The choke manifold is still in pieces but the valve system looked like it would be in full compliance when rigged up. Poor Boy gas buster is in place & will be available if needed. 5. Mud monitoring system is being installed & should be in full compliance with 20 AAC 25.033 before drilling out of the 22 -inch casing. A concern with a possible weak casing shoe @ 400 feet with secondary well control equipment installed on the 22 -inch casing was discussed with Drilling Supervisor. The choke manifold has 4 -inch valves installed for bleed line if needed. General Observations All Drilling personnel were found to be very competent & most helpful answering any question I had about the Rig & Operation. NEA General Manager Donna Vukich picked me up @ the Airport & supported me thru out my entire Rig Inspection. She is very adamant that NEA will have the safest operation possible & that NEA's Rig would be in full compliance with regulatory requirements imposed by any State agency. I assured Ms. Vukich that the AOGCC wished all the best for NEA & their drilling program. Summary: Pre -Spud Rig Inspection; NEA Rig #7; King Salmon, Alaska. Attachments: Photos (24) NEA Rig 7 Inspection 8-14-09 • NEA Rig #7 Inspection Photos by AOGCC Inspector John Crisp August 14, 2009 LJ NEA Rig 7 Inspection 8-14-09 3 : A Hydromatic Rig Braking System Rig Drawworks (National 1320); Top Drive Control Panel; Visible Gas Alarm BOPE Control Panel at on Rig Floor NEA Rig 7 Inspection 8-14-09 4 • NEA Rig 7 Inspection 8-14-09 • NEA Rig #7 Derrick with Top Drive Monorail Rig Substructure Accumulator System; No Nitrogen Backup • NEA Rig 7 Inspection 8-14-09 Koomey Lines BOP Rams and Annulars BOP Drilling Spools and Annulars • "We x �4 ;> `t. • Check Valve; Kill Line Valves NEA Rig 7 Inspection 8-14-09 Choke Manifold • AS Apf A Irl 0 Choke Manifold Covered Mud Pits Mud Pumps NEA Rig 7 Inspection 8-14-09 8 • NEA Rig 7 Inspection 8-14-09 • Gas Buster Cutting Discharge Line and Collection Box Reserve Pit • • 30 -inch Conductor and Bell Nipple Geothermal Master Valves for Wellhead NEA Rig 7 Inspection 8-14-09 10 STATE OF ALASKA 0 ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 1a. Type of Work: 1b. Current Well Class: Exploratory Q Development Oil ❑ 1c. Specify if well is proposed for: Drill Q Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas ❑ Coalbed Methane ❑ Gas Hydrates- ❑ Re-entry ❑ Multiple Zone ❑ Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket Q Single Well ❑ 11. Well Name and Number: Naknek Electric Association Inc. Bond No. CD7503394426 Naknek-G #1 3. Address: 6. Proposed Depth: 12. Field/Pool(s): PO Box 118 Naknek, AK 99633 MD: 12,000 ft TVD: 12000 ft e-x,ozoeA7v,ey 4a. Location of Well (Governmental Section): Surface: T17S, R44W, SM, Sec 14, Ei/2SW1/4% 7. Property Designation: Private Ownersip by NEA Approximate Spud Date: Top of Productive Horizon: r 8. Land Use Permit: Not Applicable 13. Total Depth: 9. Acres in Property: 14. Distance to Nearest 12,000 feet 120 Property: 599.11 feet 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL: 275.6 feet 15. Distance to Nearest Well Open Surface: x-784937 y- 1719917 Zor 6 KB Elevation above GL: feet to Same Pool: 16. Deviated wells: Kickoff depth: feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 5580 psi , Surface: 4380 psi 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) na 30" welded 100' 0 0 100 100 Pa 26.00" 22.00" 106.5 K-55 drill quip 400' 1 0 0 400 400 867 cu -ft, Class G 20.00" 16.00" 84 N-80 buttress 3000' 0 0 3000 3000 4549 cu -ft, Class G i 14.75" 11.75" 60 N-80 buttress 5300 2700 2700 8000 8000 3445 cu -ft, Class G na 1 7.625" 1 29.7 L-80 buttress 7900 0 10 7900 7900 na 6.750" 1 6.625" 1 28 buttress 4300 1 7900 1 7900 1 12000 1 12000 Ina 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length size Cement Volume MD TVD Conductor/Structural Surface Intermediate Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee Q BOP Sketch ❑✓ Drilling Program Q Time v. Depth Plot Q Shallow Hazard Analysis Q Property Plat Q Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements Q 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and correct. Contact Printed Name DDoonn%a Vukich Title General Manager, Naknek Electric Association, Inc. I ^ Signature /1 1 Y�" 1 V 1 Phone (907) 246-4261 Date 12,011c) 9 Commission Use Only Permit to Drill API Number: _00001awlo Permit Approval See cover letter for other Number: 50-14 Date: requirements. Conditions of approvals: box is checked, well may not be used to explore for, test, or produce coalbed methane, g hydrates, or gas contained in sh les:Other: 18S"� 1Ito1'1 S1L. ROPE Samplesreq'd: Yes ❑ NoMudlogreq'd: Yes [No❑'t7 ;coo r?"r awd IOK $O PEto 4SOO f2ti.• H2Smeasures: Yes❑ NoDirectional svy req'd: Yes ❑ No ❑ Petr to AAC. 2S.o;s Lh)(Z), CQVevte,, rjvc eew *,t is wor.-iVeA. 5gcLrvae- Forn/L- to -x}03 AID "V•6;i ✓ere-4 �o' r 0,11;-ra.1Rv &spos'l or t V,,t e AAc_ ZS /i Yc l e_ Z. . APPROVED BY THE COMMISSION DATE: , COMMISSIONER 1 ORIGINAL Form 10-401 (Revised 1/2009) This permit is valid for 24 months from the date of approval (20 AAC 25.005(g)) Submit in Duplicate NEA Naknek-G#1 BOPE Testina ?reS4uI ` As defined in the DNR APD dated August 11, 2009, every 7 days the BOPE will be function„tested per AOGCC regulations against a testing plug/packer. The BOPE test pressures will be as follows: 21-1/4" x 2K 2000 psi, first annular test 2000psi, subsequent tests to 1000psi (50% WP) 16-3/4" x 5K 3000 psi, first annular test 3000psi, subsequent tests to 1500psi (50% WP) For the deeper well design while drilling below 8000' TVD, a 13-3/8" 10K BOP will be used. Since the calculated MASP for this portion of the well is 4380 psi, it is planned to test the BOPE to 4500 psi per AOGCC regulations. The annular will be tested once to 4500psi and subsequently to 50% or 2250 psi. Well Deviation The Naknek G#1 will be drilled as a vertical hole. A vertical wellbore will be maintained using the Baker Vertitrak Drilling System. Inclination and azimuth will be taken every 500' via single shot. 632000 634000 636000 638000 640000 642000 644000 646000 648000 ��Ay j i., + Ji ! 2f J til ti 3 rt I j rl' '� �. 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Naknek Electric Association Geothermal Well: Naknek-G#1 Report: Shallow Gas Hazard Assessment for Depth <2,000 ft Introduction This report will address the geology associated with determining the shallow gas hazard at depths of less than 2,000 feet in applying for the necessary permits to drill the exploratory geothermal well Naknek-G#l. All data used in this report for the determination of the potential hazard has been obtained from publicly available sources e.g. United States Geologic Service (USGS), Alaska Division of Natural Resources (ADNR), Alaska Division of Geological & Geophysical Surveys, Alaska Oil & Gas Conservation Commission (AOGCC). Location, Access The proposed geothermal well Naknek-G#1 is located 5.3 miles northeast of King Salmon in section 14; Township 17S, Range 44W, Seward Meridian, Alaska Peninsula. It is accessible over the current main road and 1.9 miles of new road to provide access to the well site, a distance of 7.2 miles from King Salmon. Naknek-G#1 Well Geology Based upon the outcrop geology in the local area around the proposed well the following geology is expected to be encountered above 2,000ft, Quaternary Nushagak Formation 400-750 ft thick Glacial drift deposits Tertiary Meshik Formation 5641 ft thick Volcanic rocks, sandstones volcanic breccias, Andesitic-basaltic extrusive volcanics, or Local silst. and shale. The thicknesses of the sequences outlined above are based upon work carried out by the USGS and State of Alaska DNR. This work is referenced in a number of published reports and was compiled from field observations and from well data collected from oil and gas exploration wells across the Alaska Peninsula. Of note are: Marlow et al, 1980; Riehle et al, 198.5; Detterman, 1990; Dettennan et al, 1996; Haga et al 2005; Decker et al, 2008. In assessing the shallow gas hazard the well data and mud log data for the three nearest deep wells was assessed: General - Great Basin #1, General - Great Basin #2, Amoco - 11401 Olive Lane, Anchorage, Alaska 99515 Phone: (907) 522-4664 Fax: (907) 349-3557 Becharof State #1. A consideration was given to using Wide Bay Unit #1 as a point of correlation. However, this well lies to the east of the Bruin Bay fault in a separate terrain and negates it use as a correlative well. Nushagak Formation —Pleistocene — Brooks Lake Drift Outwash deposits of sands and gravels are mixed in with till and stratified ice -contact deposits with a matrix of silty sand comprising about 50% of the deposit (Detterman et al 1987). The depth of glacial drift material overlying bedrock has been given a range of depth of between 400 ft and 750ft based upon three lines of evidence: • Within 2,300 ft of the proposed site for Nanek-G#1, a groundwater monitoring well was drilled to a depth of 400 ft, the limit of the drill machine used. At that depth it had not encountered bedrock. No gas was reported from the well. • Ground magnetic surveys carried out by Alaska Earth Sciences in 2009 modeled the depth to contact of the volcanic rocks. Adjacent to the drill site the modeling revealed a depth of approximately 225 m or 778 ft (Figure 2) • Geologic mapping by the USGS (Detterman et al 1987) Both pieces of evidence when combined with aeromagnetic data indicate a palaeo-surface channel up to 300ft deep that coincides with a projected fault splay from the Lake Clark fault (Figure 3). Meshik Formation Below the Nushagak Formation glacial drift the well is expected to encounter Oligocene Meshik Formation extrusive andesite-basalt volcanic flows, breccias and related volcanoclastic tuffs, and potential occurrences of siltstone and shale. The Becharof State #1 well encountered 1,543 ft of Meshik Formation, interpreted as Stepovak or Tolstoi Formation by other authors. The Ugashik #1 well encountered a thicker section of .5,491 ft of Meshik Formation. The most complete stratigraphic section of the Meshik Formation was encountered in the Gulf - Port Heiden Unit #1 well which drilled to a total depth of 1.5,015ft. A total depth of 5.629 ft of Meshik Formation was interpreted from the well logs (Detterman, 1990), and biostratigraphic correlation (Hagg et al 2005). The formation is composed volcanic rocks consisting mainly of tuffs with volcanic breccia and flows. Detterman (1990) stated that "These volcanic derived deposits cannot be considered a source of or a potential reservoir for petroleum." The expectation of encountering the Meshik Formation at the glacial drift - bedrock contact is based upon the following lines of evidence: • Locally mapped and sampled outcrop geology around Naknek Lake (DNR -DOG: Alaska Peninsula Oil & Gas Resource Series plate 6 of 19, 2004). • One of three water monitoring wells drilled in 2007 for NEA in the vicinity of the proposed Naknek-G#1 site encountered bedrock at the bottom of the hole. A core sample analyzed by an ADGGS geologist interpreted the rock to be a splatter deposit of basal tic-andesite of the Meshik Formation. Summary of Data Available Water Wells & Monitor Wells Wells drilled in 2007 — 3 wells drilled for water monitoring for NEA. Reported by HDR (2007) — Boreholes reached depths: #1 — 39.5 ft, #2 — 2.55ft, #3 — 400ft. — Only bedrock contact #2 @ 255ft - reported as Meshik Volcanics "spatter deposits" by ADGGS geologist Jim Clough — consistent with matic volcanics observed within the Meshik Formation. — Bore holes #1 & #3 did not encounter bedrock — was the "bedrock" at 255 ft a boulder only. Water Well Drillers Logs — 4 township area of drillers logs around the proposed G#1 site reviewed — Deepest well King Salmon #1 to 240 ft — All local wells encountered only unconsolidated material sands & gravels with occasional silts and ashy clay layers (water -lain volcanic ash) — No bedrock encountered — No gas or hydrocarbons reported — all water described as clear & potable — Maximum flow rate noted as 150gpm for 24 hours. Oil & Gas Exploration Wells Becharof #1 — First gas recorded at 740 ft @ +/- 0.01% discontinuous stream — No continuous gas recorded — Unconsolidated sands & gravels to >1,000ft — First coal -lignite @ 2260-2410 ft — First clays 2590 ft — Significant Formation tests: • DST 10: l0MCFD @ l4psig, depth 6,640-6,6.55 ft • DST 8: 50MCFD @ 10-50 prig, depth 6,860-6,960ft • DST 5: 30MCFD @ 30 psig, depth 7,470-7,550ft Great Basin #I — Unconsolidated material to >1.000ft dominated by sand & gravels w/ pebbles intrusive material — Trace wood @ 200 ft; Wood — coal @ 2,200ft — Trace gas @ 1,320 ft — First clay @ 1,325 ft Great Basin #2 — Above 1,000ft rounded glacial gravels; mostly unconsolidated — First clay @ 285 ft — ashy clay — likely volcanic ash bed; next clay @ 775- 800 ft — Coal -lignite beds @ 1475 ft — First gas — trace @ 1,375 ft Literature Review • Riehle et all 1994 — USGS Circular 1106 — Nankek Lake is damned by moraines — Outcrops of Palaeozoic gneiss — No recognized natural resource potential • Waythomas, 1994 — USGS OFR 94-323 study notes thick glacial cover Bedrock geology noted as outcrops Northwest of Naknek Lake of basalt plugs, domes, dikes and lava flows with lava and breccias of dacite- andesite composition — consistent with descriptions of Meshik Volcanics — South of Naknek Lake — bedrock outcrops of lava flows, breccias, lahars with volcanoclastic sediments. — Water wells drilled to 215 ft feet did not hit bedrock — No gas or hydrocarbons reported in water quality data • Detterman, 1990 — USGS OFR 90-279 — Descriptions of Great Basin #1 Geology describes 350ft unconsolidated glacial drift. — No hydrocarbons observed in cuttings from near surface <2,OOOft • Blodgett & Clautice, 2005 — PIR 2005-006 — Comment in the Abstract states "unfortunately all of these wells produced only traces of hydrocarbons ... Mesozoic strata ... did not prove to be economical" — Stated that "All oil and gas seeps attributed to Kialagrik, Shelikof and Naknek Formations" • National Parks Service 1994 — Resource Management Plan — Katmai National Park and Preserve States that Naknek Lake is up to 530 ft deep. No reported hydrocarbon seepage into the lake. '-00 ALASKA EARTH SCIENCES, INC. Naknek Electric Association Geothermal Well: Naknek-G#1 Expected Well Geology Introduction This report will address the geology expected to be encountered in the drilling of exploratory geothermal well Naknek-G#1. All data used in the compilation of this report for the has been obtained from publicly available sources e.g. United States Geologic Service (USGS), Alaska Department of Natural Resources (ADNR), Alaska Division of Geological & Geophysical Services (ADGGS), Alaska Oil & Gas Conservation Commission (AOGCC) and Alaska Division of Oil and Gas (ADOG). Location, Access The proposed geothermal well Naknek-G#1 is located 5.3 miles northeast of King Salmon in section 14 (E 1/i SW 1/4 ) and section 23 ( NE 1/4 NW 1/4 ); Township 17S, Range 44W, Seward Meridian, Alaska Peninsula. It is accessible over the current main road and 1.9 miles of new road to provide access to the well site, a distance of 7.2 miles from King Salmon. Regional Geology The proposed geothermal well Naknek-G#1 lies on the north-east end of the Alaska Peninsula. Several tectonic elements are present in this portion of the peninsula that forms the basis of the geologic framework. Two major northeast -trending and bounding fault zones are present: the Bruin Bay Fault system along the crest of the Aleutian Range to the southeast and the Lake Clark Fault system to the northwest. The Lake Clark is a graben -like extensional structure which has documented vertical of approximately 3000 feet and up to 16 miles of right -lateral displacement. The Bruin Bay has had up to 2 miles reverse (up -to -northwest) and 12 miles of left -lateral displacement.. The Bruin Bay Fault is a major thrust fault that dips to the northwest. It can be mapped for over 300 miles from near Anchorage to the south shore of Becharof Lake. The fault parallels the Alaska Peninsula and divides it into two distinct geologic terrains. The two sub-terranes of the Alaska Peninsula terrane are characterized by radically different structural and metamorphic styles. The rocks of the Iliamna sub -terrane, which lie west of the Bruin Bay Fault, are characterized by metamorphism up to amphibolite-facies grade and intense folding. West of the fault there are metamorphic and volcanic rocks of Triassic and Early Jurassic age that are intruded by the Aleutian Range Batholith of Jurassic age and small stocks of Tertiary age. These rocks are locally overlain by non - marine Tertiary clastic rocks. East of the faults is a sedimentary province containing Late Jurassic and Cretaceous marine clastic rocks with abundant fossils and few small areas of non -marine Tertiary clastic rocks. This area also contains all the Quaternary and Recent volcanoes. The geothermal province associated with Katmai is east of the Bruin Bay Fault. Note that the study area is located west of the main fault. However, several 11401 Olive Lane. Anchorage, Alaska 99515 Phone: (907) 522-4664 Fax: (907) 349-3557 significant volcanoes are located east of the Bruin Bay Fault. These include all of the volcanoes in Katmai National Park and Preserve, except for the Augustine volcano which is north of the park. Naknek-G#1 Well Geology Based upon the outcrop geology in the local area around the proposed well the following geology is expected to be encountered: Quaternary Nushagak Formation 400-750 ft thick Glacial drift deposits Tertiary Meshik Formation 5629 ft thick Volcanic rocks, sandstones volcanic breccias, Andesitic-basaltic extrusive volcanics, or Local silst. and shale. Lower Jurassic Talkeetna Formation 1341 ft thick Pre Jurassic -Triassic Basement to T.D. — 12,000ft Intrusive rocks, metamorphic rocks folded and faulted The thicknesses of the sequences outlined above are based upon work carried out by the USGS, ADGGS, ADNR and ADOG. This work is referenced in a number of published reports and was compiled from field observations and from well data collected from oil and gas exploration wells across the Alaska Peninsula. Of note are: Marlow et al, 1980; Riehle et al, 1985; Detterman, 1990; Detterman et al, 1996; Haga et al 2005; Decker et al, 2008. In assessing the shallow gas hazard the well data and mud log data for the three nearest deep wells was assessed: General - Great Basin #1, General - Great Basin #2, Amoco - Becharof State #1. A consideration was given to using Wide Bay Unit #1 as a point of correlation. However, this well lies to the east of the Bruin Bay fault in a separate terrain and negates it use as a correlative well. Nushagak Formation —Pleistocene — Brooks Lake Drift Outwash deposits of sands and gravels are mixed in with till and stratified ice -contact deposits with a matrix of silty sand comprising about 50% of the deposit (Detterman et al 1987). The depth of glacial drift material overlying bedrock has been given a range of depth of between 400 ft and 750ft based upon the following lines of evidence: • Within 2,300 ft of the proposed site for Nanek-G#1, a groundwater monitoring well was drilled to a depth of 400 ft, the limit of the drill machine used. At that depth it had not encountered bedrock. No gas was reported from the well. • Ground magnetic surveys carried out by Alaska Earth Sciences in 2009 modeled the depth to contact of the volcanic rocks. Adjacent to the drill site the modeling revealed a depth of approximately 225 in or 778 ft (Figure 2) • Geologic mapping by the USGS (Detterman et at 1987) • Water wells and water monitoring wells drilled in the King Salmon area, to a maximum of depth of 400 ft, have only encountered bedrock in one hole at 245 ft. This evidence when combined with aeromagnetic and gravity data indicate a palaeo- surface channel up to 300ft deep that coincides with a projected fault splay of the Lake Clark fault. Meshik Formation Below the Nushagak Formation glacial drift the well is expected to encounter Oligocene Meshik Formation extrusive andesite-basalt volcanic flows, breccias and related volcanoclastic tuffs, and potential occurrences of siltstone and shale. The Becharof State #1 well encountered 1,543 ft of Meshik Formation, interpreted as Stepovak or Tolstoi Formation by other authors. The Ugashik #1 well encountered a thicker section of 5,491 ft of Meshik Formation. The most complete stratigraphic section of the Meshik Formation was encountered in the Gulf - Port Heiden Unit #1 well which drilled to a total depth of 1.5,015ft. A total depth of 5,629 ft of Meshik Formation was interpreted from the well logs (Detterman, 1990), and biostratigraphic correlation (Raga et at 2005). The formation is composed volcanic rocks consisting mainly of tuffs with volcanic breccia and flows. Detterman (1990) stated that "These volcanic derived deposits cannot be considered a source of or a potential reservoir for petroleum." The expectation of encountering the Meshik Formation at the glacial drift - bedrock contact is based upon the following lines of evidence: • Locally mapped and sampled outcrop geology around Naknek Lake (DNR -DOG: Alaska Peninsula Oil & Gas Resource Series plate 6 of 19, 2004). • One of three water monitoring wells drilled in 2007 for NEA in the vicinity of the proposed Naknek-G#1 site encountered bedrock at the bottom of the hole. A core sample analyzed by an ADGGS geologist interpreted the rock to be a splatter deposit of basal tic-andesite of the Meshik Fon-nation. Talkeetna Formation The Talkeetna Formation is an early Jurassic package of volcanic and sedimentary rocks and has been recognized as an important marker horizon in southern Alaska (Detterman et at, 1996). West of the Bruin Bay fault the Talkeetna Formation is described as a volcanic unit with volcanic conglomerate and sandstone. Fossils described in the formation consist mainly of ammonites Arnioceras, Psiloceras, Discamphiceras and Waehneroceras. The thickness of the sequence expected to occur has been calculated from the type sequence observed in well data, and from corresponding correlations. The thickness used here has been taken from Detterman et al (1985) of 1,341 ft. The evidence for encountering Talkeetna Formation rocks in Naknek-G#1 are as follows: • Outcrops of Talkeetna Formation rocks in the vicinity of Naknek Lake lying in unconformable contact with Meshik Formation rocks. Basement Rocks The basement rocks are expected to be encountered at a maximum depth of 7,720ft. This is based on the maximum thickness of each geologic formation to be encountered. There is no drilling in the vicinity of the Naknek-G#1 well that has a significant interval of basement rocks. The rocks are expected to be metamorphosed sedimentary rocks and pre - Cretaceous intrusive rocks. The possibility of encountering Tertiary intrusions cannot be excluded. Outcrop to the south-east of the proposed well is mapped as the Kakhonak Complex - Late Jurassic to Permian age. Riehle et al 1985 describe the Kakhonak complex as being composed of "locally foliated or banded quartzite, schist, amphibolite, and garnet bearing gneiss indicative of amphibolite facies metamorphism." Petroleum Potential None of the formations listed above have been described in the literature as being suitable for either reservoir or source rocks for petroleum. Well logs reviewed have no indicated significant petroleum encounter that created an oil flow situation to occur. This statement above is based upon: • Review of mud -logs for the General — Great Basin #1 well, General — Great Basin # 2 well; Amoco — Becharof State #1 well and the General — Ugashik #1 well. • Literature review of the petroleum potential of the Alaska Peninsula and Bristol Bay region area as defined in the Alaska Peninsula Areawide Oil and Gas Lease Sale References Alaska Peninsula Areawide Oil and Gas Sale Lease Sale, Information and Data Compilation Packet, Updated March 2007: State of Alaska, Department of Natural resources, Division of Oil and Gas. Decker, P.L., Reifenstuhl, A.E., and Gillis, R.J., 2008, Structural linkage of major tectonic elements in the Ugash ik-Becharof Lakes region, northeastern Alaska Peninsula, in Reifenstuhl. R.R., and Decker, P.L., eds., Bristol Bay -Alaska Peninsula region, overview of 2004-2007 geologic research: Alaska Division of Geological & Geophysical Surveys Report of Investigation 2008-1F, p. 85-103, 1 sheet. Detterman, R.L., Miller, J.W., and Case, J.E., 1985, Megafossil locality map, checklists, and pre -Quaternary stratigraphic sections of Ugashik, Bristol Bay, and part of Karluk quadrangles, Alaska: U.S. Geological Survey Miscellaneous Field Studies 1539-B, 3 sheets, scale 1:250,000. Detterman, R.L., Wilson, F.H., Yount, M.E., and Miller, T.P., 1987, Quaternary geologic map of the Ugashik, Bristol Bay, and western part of Karluk quadrangles, Alaska: U.S. Geological Survey Miscellaneous Investigations 1801, 1 sheet, scale 1:250,000. Dettennan, R.L., 1990, Stratigraphic correlation and interpretation of exploratory wells, Alaska Peninsula: U.S. Geological Survey Open -File Report 90-279, 51 p. Dettennan, R.L., Case, J.E., Miller, J.W., Wilson, F.H., and Yount, M.E., 1996, Stratigraphic framework of the Alaska Peninsula: U.S. Geological Survey Bulletin 1969- A, 74 p. Haga H., Mickey M.B., Boettcher R.S., Kling S.A., 2005, Northwestern Alaska Peninsula / Bristol Bay Biostratigraphy Study, North Aleutian Basin, Bering Sea, Alaska: Micropaleo Consultants for Alaska Department of Natural Resources, Division of Oil and Gas 25-104, 282 p. Marlow, M.S., McLean, Hugh, Cooper, A.K., Vallier, T.L., Gardner, J.V., McMullin, Robert, and Lynch, M.B., 1980, A preliminary summary of regional geology, petroleum potential, environmental geology, and technology for exploration and development for proposed OCS lease sale No. 75, northern Aleutian Shelf, Bering Sea, Alaska: U.S. Geological Survey Open -File Report 80-653, _54 p. Reifenstuhl, R.R., and Decker, P.L., eds., 2008, Bristol Bay -Alaska Peninsula region, overview of 2004-2007 geologic research: Alaska Division of Geological & Geophysical Surveys Report of Investigation 2008-1 v. 1.0.1, 223 p.. 3 sheets, scale 1.500,000. Riehle, J.R., Bailey, E.A., Church, S.E., and Yount, M.E., 1989, Sample locality maps, analytical data, and statistical summary of analyses of rock samples from the Mount Katmai Quadrangle and adjacent portions of the Naknek and Afognak quadrangles, Alaska: U.S. Geological Survey Open -File Report 89-570, 136 p., 2 sheets, scale 1:250,000. .1 16 *Ir , ',I J • �� 156`W 155_W o ® ♦• ♦• \.. oD _ ; � I I III I 74 o ( ♦� �o °III � ♦� -- • 26km offset ♦ Lake Clark Fault one • j; I I t I jGraben Structure j U 4♦ .•._- 44 00 1 , •• a ♦ �'rti Block Faulted Down I • x'� �, 0 ; jI II,. lik �uin Bay D Fault Zone Q Basement f19kmoffset i C: UP 4 IiII II' 01) �0 S Recent,�,l,,_�� Volcanoes III.•rl' � \ m Great Basin 1 Uplift �. J , t I I � Becharof Cis 41 Recent fill Ugash ik ; off* Volcanoes Sub -Basin • 6,1 ar CrReek�� Block Faulted ?� Down r. J • i '! , ? ' �. i' Naknek Lake Area - Regional Geology Earth Silences Y + March zoos USGS Geology with additional ; 0Alaska Interp by WTE Drafting by RPY structural interpretation by AES 1571) t '/� i 156°W 0 10 20 30 40 50 r�\v Km Albers Equal Area .� NAD'83 Dillingham-Illiamna Geology Unconsolidated QS Igneous rocks T p g Tmv Tmf Tmba IIIIIII TKgd Alaska Aleutian Range - Sedimentary rocks Tcl - Talkeetna Formation Jtk - Kamishak Formation Im Trku Trkm - Structural assemblages x xxxx JPk - Igneous rocks IIIIIII Togd - Jqd Jmu Naknek-MtKatmai-Ugashik Geology Sedimentary Igneous Sedimentary Rocks - Volcanic - Quaternary Qa Qv Qaf Qpd Qb QTv Qmt - Volcanic - Tertiary QM Tv - Tertiary Tm Tbl - Volcanic - Triassic ® Try Th - Cretaceous - Intrusive - Tertiary Kc Ti Kk Ti u Kp Tgd Khe Tqd Kst - Intrusive - Jurassic - Jurassic Jgd in Jgr - Jqd Jni Jgb ink ins Metamorphic - Mesozoic IIIIIII inn x vx x JPk J n c Trc JS other Jk water it glacier - Triassic Trk Figure 2 Naknek Geothermal Project - Confirmation Well Design Cellar 16-3/4", 3M x 13-5/8", 5M Landing Spool for hanging 7-5/8" casing _ 16" SOW x 16-3/4", 3M casing head with 2 x 2-1/16", 5M valved outlets 30 -inch conductor pipe - driven to 120 ft 22 -inch, 106.5 #/ft, surface casing cemented inside 26 -inch hole @ 400 ft 16 -inch, 84 #/ft, casing cemented to surface ri .r inside a 20 -inch hole @ 3,000 ft r , " r r 7 -5/8 -inch, 29.7 #/ft, tie -back liner hung inside X inch casing Seal assembly with polished bore receptacle �`.'• 11 -3/4 -inch, 60 #/ft, casing hung inside the 16 -inch casing with a 300 ft liner lap and cemented inside 14 -3/4 -inch hole to 8,000 ft ' —i. Ill III ' • III 6 -5/8 -inch, 24 #/ft, combination of slotted and blank liner (optional), hung inside the I I I 11 -3/4 -inch casing with a 100 ft lap to TD I I I ` III • -LQ 5,19 inch Open Hole drilled to 12,000 ft (MD) GeothermEx, Inc. 2009 NEA Naknek-G#1 Naknek G#1 Drilling Procedure 1. Move on NEA Rig 7. 2. Drill 26" hole to +/- 400' md. / 3. Run 22" casing and cement to surface 4. Install 21-1/4" casing head flange. Nipple up 21-1/4", 2K BOP and test to 2000 psi. 5. MU 20" drilling BHA, drill out float collar, pressure test casing to 400 psi. 6. Drill 20" hole to 3000' and 7. Run 16" casing, cement to surface. 8. Nipple down 21-1/4" BOPE, install 16-3/4", 3K permanent casing head, nipple up 16-3/4" BOPE, test BOPE to 3000psi. . 9. RIH with 14-3/4" drilling assembly. Drill out float collar, pressure test casing to 1000 psi. Drill out casing shoe and 20' of new formation. Perform Formation Integrity Test to 12.5 ppg EMW. 10. Drill 14-3/4" hole to 7970'. 11. MU Baker Core Barrel. Core 7970'— 8000'. Circulate hole clean. Log per program. 12. Run 11-3/4" liner with liner hanger, allow 300' liner lap. Cement TD to top of liner. Allow cement to set for 24hrs, test liner lap to 1500 psi. 13. Nipple down BOP. Install a permanent 16-3/4" 3K x 12" 2K expansion spool assembly. Install casing spool to hang 7-5/8" tie -back casing. 14. Run 7-5/8" casing with packer as deep as possible inside 11-3/4" casing (+/-7900-8000'), land casing, set packer. Pressure test 7-5/8" casing to 4500 psi. 15. Nipple up 13-5/8" 10K BOPE and pressure test to 4500 psi. 16. RIH with 6-3/4" drilling assembly. Drill out 7-5/8" float shoe, 11-3/4" casing shoe, and 20' of new formation, perform Formation Integrity Test to 12.45 ppg EMW. Drill 6-3/4" hole to TD. MU Coring Assembly, cut core @ TD. 17. Run OH Logs. 18. Evaluate geothermal resource potential and prepare for one of three options; plug and abandon, secure and suspend well for more geological evaluation, or complete as a geothermal source well. r NEA Naknek-G#1 Naknek Drilling Hazards Summary (To be posted in Rig Floor Doghouse Prior to Spud) 26" Hole / 22" Surface Casina Interval to 400' Event Risk Level Mitigation StraLegy Conductor Broach Low Monitor cellar continuously during interval. Well Collision NA Exploratory well Gas Hydrates Low Not anticipated as well is located in a non - Lost circulation Low continuous frost region, gas sensor's in pits Running Sands and Gravel Medium Maintain planned mud parameters, Increase mud weight, use weighted sweeps. Abnormal Pressure in Low Know geology to 400' from nearby offset wellbore Surface Formations proper hole filling, pumping out of hole, weighted Lost Circulation Low Reduced pump rates, mud rheology, lost circulation Abnormal Reservoir low material 20" Hole / 16" Surface Casina Interval to +/- 3000' Event Risk Level Mitigation Strategy Abnormal Pressure in low BOPE drills, Keep mud weight above 9.6 ppg. Surface Formations Moderate Check for flow during connections and if needed, < 3000' TVD low increase mud weight. Lost circulation Low Reduced pump rates, reduced trip speeds, real time equivalent circulating density (ECD) monitoring, mud rheology, lost circulation material Hole swabbing on trips Moderate Reduced trip speeds, monitor mud properties, proper hole filling, pumping out of hole, weighted sweeps. Abnormal Reservoir low Well control drills, increased mud weight. No Pressure mapped faults occur near the planned wellbore. Hydrogen Sulfide gas Low H2S detections stems, alarms 14-3/4" Hole / 11-3/4" Liner Interval to 8000' Event Risk Level Mitigation Strategy Lost circulation Low Reduced pump rates, reduced trip speeds, pump lost circulation material Hole swabbing on trips Moderate Reduced trip speeds, proper hole filling, pumping out of hole, weighted sweeps. Abnormal Reservoir Pressure low Check for flow during connections and if needed, increase mud weight. Hydrogen Sulfide gas Low H2S detections stems, alarms 6-3/4" Production Hole to 12,000' Event Risk Level Mitigation Strategy Lost circulation low Anticipated to be in Igneous Basement Rock Hole swabbing on trips low Ensure proper hole filling during bit trips, pumping out of hole, weighted sweeps. Abnormal Reservoir Pressure Medium BOPE drills. Check for flow during connections and if needed, increase mud weight. Hydrogen Sulfide gas Low H2S detections stems, alarms Predicted Pore Pressures., Fracture Gradient, Offset Mud Weight Data Pressure, psi 0 1000 2000 3000 4000 5000 6000 7000 0 w 2000 --- ♦-Becarof State 1 3000' _ _ _ FPP = 1395 psi -*-Great Basin 1 i 4000 — �' -- Great Basin 2 0.65 psi/ft frac grad 6000 —SIE -0.465 psi/ft FPP grad CLs r d 8000 8000' FPP = 3720 psi 10000 — 12000 12,000' TD 5580 psi 14000 9 NEA Naknek-G#1 PRESSURE INFORMATION AND CASING DESIGN (per 20 ACC 25.005 ( c) (3,4) and as required in 20 ACC 25.035 (d) (2)) 9 The following presents data used for calculation of anticipated surface pressure (ASP) during drilling of this well : Casing Size Casing Depth Next Fracture FPP FPP @ ASP 80% Casing MD/TVD Casing Gradient Gradient, Next CSG Drilling Burst Rating (in) (ft) Depth (lbs. / gal) psi/ft Point (psi) (ft) (psi) (psi) 22.000 400 3000 12.5 0.465 1395 220 1928 16.000 3000 8000 12.5 0.465 3720 1650 3464 7.625 8000 12000 12.5 0.465 5580 4380 5512 tieback PROCEDURE FOR CALCULATING ANTICPATED SURFACE PRESSURE (ASP) ASP is determined as the lesser`of 1) surface pressure at breakdown of the formation casing seat with a gas gradient to the surface, or 2) formation pore pressure at the next casing point less a gas gradient to the surface as follows: 1) ASP=[(FGx0.052)-0.1]D Where: ASP = Anticipated Surface pressure in psi FG = Fracture gradient at the casing seat in Ib/gal 0.052 = Conversion from Ib./gal to psi/ft 0.1 = Gas gradient in psi/ft D = true Vertical depth of casing seat in ft RKB MIM 2) ASP = FPP — (0.1 x D) Where; FPP = Formation Pore Pressure at the next casing point ASP CALCULATIONS 22" surface casing set @ 400', drilling 20" hole to 3000' MD/TVD ASP =[(FGx0.052)-0.1]D = [(12.5 x 0.052) — 0.1 ] x 400 220 si OR ASP = FPP — (0.1 x D) = 1395 — (0.1 x 3000') = 1095 psi f 2. 16" casing set at 3000', drilling 14-3/4" hole to 8000' MD/TVD ASP = [(FG x 0.052) — 0.1 ] D =[(12.5x0.052) -0.1]x3000=150 Psi CdI ASP = FPP — (0.1 x D) = 3720 — (0.1 x 8000') = 2920 psi • 0 NEA Naknek-G#1 3. 7-5/8" tie -back casing set inside 11-3/4" liner at 8000', drillinq hole to 12,000' MD/TVD ASP = [(FG x 0.052) — 0.1 ] D � = [(12.5 x 0.052) — 0.1 ] x 8000 = 4t400'psi OR ASP = FPP — (0.1 x D) = 5580 — (0.1 x 12000') = i 380"Si FORMATION INTEGRITY TEST PROCEDURE 1. After cementing casing and nippling up BOPE, RIH to top of cement and pressure test the casing to the specified test pressure and record. 2. Drill out casing shoe and 20' of new hole. 3. Circulate the hole to establish a uniform mud density throughout the system. PU into the shoe. 4. Close the BOP (ram or annular). 5. Pump down the drillstring at 1/4 to'h bpm. 6. Record fluid pumped (volume or strokes) vs. drill pipe pressure. If the formation begins to take fluid shut down pump as not to break down shoe further. o 7. If the desired EMW Test Pressure is reached, shut down and hold pressure there. 8. Record pressure vs time at 1 minute intervals for the first 5 minutes, then at 5 min intervals for 30 min. 9. Slowly bleed pressure back to 0 psi. FORMATION INTEGRITY TEST CALCULATIONS Formation Integrity Test Pressures are calculated at the maximum pressure a casing seat sees during Maximum Anticipated Surface Pressure. 1) FIT = MASP + (0.1 x D) 2) FIT Test Pressure = 0.052*(FIT EMW — Current Mud Weight)*D Where: FIT = Formation integrity test at casing shoe MASP = Maximum Anticipated Surface Pressure D = true Vertical depth of casing seat in ft RKB 0.052 = Conversion from Ib./gal to psi/ft 0.1 = Gas gradient in psi/ft EMW = Equivalent Mud Weight at casing shoe 22" casing set 0 400', It is not planned to perform a Formation Integrity Test at this depth to avoid breaking down the shallow formation. NEA Naknek-G#1 2. 16" casing set @ 3000', 1) MASP =1650 psi (as determined in ASP calculations) FIT = MASP + (0.1 x D) = 1650 psi + (0.1 x 3000') = 1950 psi =12.5 ppg EMW *Assuming Current Mud Weight = 9.0 ppg 2 FIT Test Pressure = 0.052* 12.5 9.0 *3000 = 546 psi r ( ppg — ppg) 3. 7-5/8" casing set 0 8000', 1) MASP = 4380 psi (as determined in ASP calculations) FIT = MASP + (0.1 x D) = 4380 psi + (0.1 x 8000') = 5180 psi = 12.45 ppg EMW *Assuming Current Mud Weight = 9.4 ppg 2 FIT Test Pressure = 0.052 12.45 9.4 *8000 = 1270 psi ( ppg — pPg) BAKERa Drilling Fluids NAKEK1 NAKN KNALASKA GEOTHERMEX, INC. V. WELLBORE SUMMARY y 11000 Interval 0'— 700' 700'-3,000' 3,000'— 8,000' 8,000'— 10,000' 10,000'7jAeO' Casing Size 22" 16" 11 3/4" 8 5/8" 6 5/8" Hole Size 26" 20" 14 3/4" 10 5/8" 7 7/8" Mud Weight 1.04/1.15 1.04/1.15 1.05/1.2 1.05/1.2 1.1 /1.2 SG 8.6/9.6 8.6/9.6 8.7/10 8.7/10 9.1/10 pp9 Viscosity 60-70 60-70 45-50 45-50 40/50 sec/qt Plastic NC NC <1 mm <1 mm <1 mm Viscosit ALAP ALAP ALAP ALAP ALAP y cps Yield Point 20-30 20-30 8-15 8-15 8-15 #/100 fe Gel Strength 5/10 5/10 2/10 2/10 2/20 10 sec/10 min API Fluid Loss 20-30 cc 20 — 30 cc < 10 cc < 10 cc < 10 cc cc's Filter NC NC <1 mm <1 mm <1 mm Cake pH 8.5- 9 8.5- 9 9-10 9-10 10 11 DEN04300905RCGEO-B Page 7 of 42 I' NEA Naknek-G#1 Naknek-G#1 Cementing Program Total Volume: Total Volume = 2929 + 1620 = 4549 cf = (810 bbls) 11-3/4" Liner from 2700' - 8000'md Lead Slurry: 2700'- 7500' md, Class G cement, 12.5 ppg density Cased hole volume = (2700-3000)*(0.4758cf/ftf= 142.7 cf OH volume w/ 50% excess = (3000-7500)*(0.4336cf/ft)*1.5 = 2926.8 cf Yield: 2.9 cu ft/sk Lead Volume: 142.7 + 2926.8 = 3069.5 cu ft = 1058 sx Tail Slurry: 7500'- 8000' md, Class G cement, 15.5 ppg density OH volume w/ 50% excess = (7500-8000)*(0.4336 cf/ft)*1.5 = 325.2 cf Shoe Track Volume = (80')*(0.6329,6f/ft) = 50.6 cf Yield: 1.6 cu ft/sk Tail Volume: 325.2 + 50.6 = 375.8 cu ft = 235 sx Total Volume: Total Volume = 3069.5 + 375.8 = 3445 cf = (614 bbls) C� r 22" Casing (21.128" ID) set at 400'md inside 30" conductor loo Slurry: Surface - 400' md, Classfa-,cement, 15.2 pg density Cased hole volume = (0-5 *(1.6364cf/ft) = 245.5 cf I OH volume w/ 100% XS - (150-400)*(1.0473cf/ftj*2.00 = 523.7 cf G 2 Shoe Track Volume= 40'* 2.4347 cf/ft 97.4 cf � 1 Total Volume = 245.5 + 523.7 + 97.4466.6 cf = (154.3 bbls) - Fn Yield: 1.7 cu ft/sk Volume: 510 sx Displacement: _ (400-40)*2.4347cf/ft = 156.1 bbls Drilling Mud @ 9ppg 16" Casing set at 3000'. cemented with single stage from 3000' to surface 1 1,01 i v Lead Slurry: Surface - 2000' md, Class G cement, 12.5 ppg density Cased hole volume = (0-400)*(1.0384cf/ft) = 415.4 cf OH volume w/ 100% XS = (400-2000)*(0.7854cf/ft)*2.00 = 2513.3 cf Yield: 2.9 cu ft/sk Lead Volume= 415.4 + 2513.3 = 2929 cu ft = 1010 sx Tail Slurry: 2000'-3000' md, Class G cement, 15.5 ppg density OH volume w/ 100% XS = (2000-3000)*(0.7854cf/ft)*2.00 = 1571 cf Shoe Track Volume = 40' * (1.2288 cf/ft) = 49.2 cf Yield: 1.6 cu ft/sk Tail Volume: 1571 + 49.2 = 1620 cu ft = 1013 sx Total Volume: Total Volume = 2929 + 1620 = 4549 cf = (810 bbls) 11-3/4" Liner from 2700' - 8000'md Lead Slurry: 2700'- 7500' md, Class G cement, 12.5 ppg density Cased hole volume = (2700-3000)*(0.4758cf/ftf= 142.7 cf OH volume w/ 50% excess = (3000-7500)*(0.4336cf/ft)*1.5 = 2926.8 cf Yield: 2.9 cu ft/sk Lead Volume: 142.7 + 2926.8 = 3069.5 cu ft = 1058 sx Tail Slurry: 7500'- 8000' md, Class G cement, 15.5 ppg density OH volume w/ 50% excess = (7500-8000)*(0.4336 cf/ft)*1.5 = 325.2 cf Shoe Track Volume = (80')*(0.6329,6f/ft) = 50.6 cf Yield: 1.6 cu ft/sk Tail Volume: 325.2 + 50.6 = 375.8 cu ft = 235 sx Total Volume: Total Volume = 3069.5 + 375.8 = 3445 cf = (614 bbls) C� r 0 NEA Rig #7 Choke Manifold To Gas Buster To Mud Pits 4-1/16" 10K (BX 155) X 3-1/8" SK DSA (RX -35) 3/1/16' 5 K Valve i C 1 UMoo 1 ' CM 4 4-1/16" 10K Manual 00 00 Gate CM 2 CM M /Hydraulic Lines 2 C*M 5,pd CM 7 I ")"10K Manual Gate MC1 ■■ ■t 3-1/16" 5 K Valve w/ 4-1/16" 10K X 3-1/16" 5K DSA O x X 0 4" Panic Line Figure 6 Naknek Geothermal Project Blowout Prevention Equipment for Drilling Below 22 -inch Casing GeothermEx, Inc. 2009 • • Figure 7 Naknek Geothermal Project BLOW OUT PREVENTION EQUIPMENT FOR DRILLING BELOW 16 -INCH INTERMEDIATE CASING GeothermEx, Inc. 2009 0 Figure 8 Naknek Geothermal Project BLOW OUT PREVENTION EQUIPMENT FOR MUD DRILLING BELOW 11 -3/4 -INCH INTERMEDIATE CASING 7-5/8", 29.7 L-80, Csg. 16" SOW x 16 3M casing he 4", 3M 18", 5M esting Spool 7-5/8" casing i", 5M Trim Side ves GeothermEx, Inc. 2009 NEA Rig #7 Layout m JUNK SERVICE & SAFETY HOUSE L'F- J Z O w O 5 F- a V C7 Z) m Z 0 :) J W Ln z Q a O 2 J LL W J Ln Q OH � a z w L 0 Ln o {� I OPERATOR OFFICE 0 O= O D in w STEP DOWN SUB PNEUMATIC CATWALK O STEPDOWN SUB CHOKE H co Q C) U U 2 U (7 Z X � �U Z U U can w Q OU N J m 2 U 0 N F- LU LL F} - U Q U N 0 Z z z p 0 0 U o Q N a D Q N U J w Z) LL FUELTANK oz BOILER LU Z) �- O w 2 N z O U-' 0 LL WATER N M 0 0 0 U) U) � 0 0 0 O 0 0 � � g SHALE TANK W z Ln OJ Q Q U z U Q Z a 0 U O CN N LIGHT PLANT KOOMEY, PARTS, CHANGE #1 MUD PUMP #2 MUD PUMP SETTLING PIT cz z J Q Q U LU m m Q LL WELDING U N 0 m l7 Z_ U YJ Q� in w 0 Ln w U m 0 U ON H w LL H U Q a- U N 0 NEA Rig #7 Pit Volumes & Layout 9' 7' #1 VOLUME, BBLS # 7 SAND TRAP 2 377 3 - io TRIP 326 5 375 6 N� TANK 21.2BBT/FT Total Vol. = 11.35BBLS/FT 1.77BBUIN 0.945BBLS/IN 169.6BBLS #2 SHALE PIT 47.1BBLS/FT n 3.91 BBLS/IN 376.8 DESILTER & DESANDER PUMPS TRANSFE R LINE #3 SETTLING PIT #1 40.58BBLS/FT 3.37BBLS/IN 324.6BBLS #4 SETTLING PIT #2 0 40.75BBLS/FT in 3.35BBLS/IN N 326 BBLS TRANSFE R LINE #5 SUCTION PIT O1 46.93BBLS/FT 3.9BBLS/IN 375.4BBLS • B0 PIT # VOLUME, BBLS 1 170 2 377 3 325 4 326 5 375 6 157 7 68 Total Vol. = 1797 #6 MUD SLUG PIT MIXIN 19.59BBLS/FT I G 1.63BBLS/IN PUMP 156.7BBLS S 27'9" 11' 2000 4000 10000 12000 Figure 3 NAKNEK GEOTHERMAL PROJECT DRILLING DAYS VS DEPTH CURVE Days from Spud 2009, GeothermEx, Inc. 2-3 PLANNED ACTIVITY DAYS 1 1. Spud. Drill 26 -inch hole to 400 feet 2 2. Set & cement 22 -inch casing 2 3. Nipple up and test 21 -1/4 -inch BOPs 3 . ..... ..... ..... ..... . . .... .... .... ...... .......... ...... ..... ...... ...... ..... 4. Drill 20 -inch hole to 3,000 feet 12 5. Set & cement 16 -inch casing 2 -----6. Weld -on casing head 1 7. Nipple up and test 16 -3/4 -inch BOPs 2 8. Drill 14 3/4 -inch hole to 8,000 feet 25 9. Run Open Hole Logs 2 10. Set & cement 11 -3/4 -inch casing 2 11. Nipple up and test 13 -5/8 -inch BOPs 3 . ..... ...... .... ..... ...... .... ..... .... . ..... -7 . ..... .... ..... ... .. ...... ..... ..... ..... ... 12. Run and hang 7-5/8" production liner 2 1 13. Collect core and run extended leak -off test 5 14. Drill 10 -5/8 -inch hole to 12,000 feet 20 15. Run open -hole logs and collect core 4 16. Run and hang 6 -5/8 -inch slotted liner 1 17. Run temperature/pressure logs 1 18. Conduct rig test 2 ... ..... .... ... ...... ..... TOTAL 91 . ..... ..... ..... ..... .... .... ! . ..... ..... ..... .... ..... . ..... .... .... 913 ..... ...... ..... ..... ...... ..... . ..... ... .... ..... ..... . ..... .. ...... ..... ...... ..... ..... ...... ...... .... .... ..... ..... ..... ..... ..... ..... ..... ..... ... ..... ..... ..... ...... ..... ..... ...... ..... ..... ...... ..... ..... 144; � . ...... ..... ..... ..... .... .... ..... ..... ..... ..... ...... . . ..... ...... . [�TT. 15-18 . . ..... ..... . .... ..... ..... .. 0 10 20 30 40 50 60 70 80 90 100 Days from Spud 2009, GeothermEx, Inc. RE: Application for Permit to Drill Naknek-G#1 Please contact the following with questions regarding the AOGCC APD: Nick Scales Project Drilling Supervisor (907) 439-3722 (Naknek ) (907) 242-5277 (Anchorage) Jake Flora Contract Drilling Engineer (907) 748-6385 (Anchorage) 17 August 2009 Commissioner Cathy Foerster Alaska Oil and Gas Conservation Commission 333 West Ph Avenue, Suite 100 Anchorage, AK 99501 RE: Naknek Electric Association, Inc. Naknek-G #1 Well Request for C -Plan Waiver Dear Commissioner Foerster: Naknek Electric Association, Inc. (NEA) is making plans to drill an onshore exploratory well in the King Salmon area. We hope to begin drilling our first well, the Naknek-G #1 well as early as August 15, 2009. The well is intended to explore for geothermal resources. We do not believe that the well will encounter any oil and that there is only a slight chance that the well will encounter any gas. We do not anticipate any over pressure zones. Our first well will be designed and drilled to a depth no deeper than 12,000 feet subsea. Subsequent wells will be designed and located in the future to further delineate'geothermal resources in the area. It is our understanding that the AOGCC is reviewing the well design and drilling program for the deeper parts of this well based on its health and safety criteria. The Department of Natural Resources has issued a geothermal permit to drill (Permit #2215) for the well, and this permit will govern and be used to spud the well and drill the shallow portions of the well. We are applying to the AOGCC for a permit to drill and the AOGCC permit to drill will be used to govern the deeper portions of the well. With these plans in mind, NEA is making a request to have its exploration well designated as "gas only" or "no hydrocarbons." We believe the available data support our request and hope that the AOGCC and the ADEC can grant our request in a timely manner. There have been no significant oil shows anywhere near the area and only a few isolated gas shows in wells located away from our location. The regional geology strongly suggests that we are not in an area likely to contain recoverable quantities of oil or gas and that there is a reasonable certainty that no oil will flow to the surface. This well is not being drilled to explore for either oil or gas. NAKNEK ELECTRIC ASSOCIATION, INC. POST OFF1 F BOX . : ^r ir: vFx 4 4Sn4.:. ?• .. vM1E _. 2? . r,... _ _ .. 17 August 2009 Commissioner Cathy Foerster Alaska Oil and Gas Conservation Commission 333 West Ph Avenue, Suite 100 Anchorage, AK 99501 RE: Naknek Electric Association, Inc. Naknek-G #1 Well Request for C -Plan Waiver Dear Commissioner Foerster: Naknek Electric Association, Inc. (NEA) is making plans to drill an onshore exploratory well in the King Salmon area. We hope to begin drilling our first well, the Naknek-G #1 well as early as August 15, 2009. The well is intended to explore for geothermal resources. We do not believe that the well will encounter any oil and that there is only a slight chance that the well will encounter any gas. We do not anticipate any over pressure zones. Our first well will be designed and drilled to a depth no deeper than 12,000 feet subsea. Subsequent wells will be designed and located in the future to further delineate'geothermal resources in the area. It is our understanding that the AOGCC is reviewing the well design and drilling program for the deeper parts of this well based on its health and safety criteria. The Department of Natural Resources has issued a geothermal permit to drill (Permit #2215) for the well, and this permit will govern and be used to spud the well and drill the shallow portions of the well. We are applying to the AOGCC for a permit to drill and the AOGCC permit to drill will be used to govern the deeper portions of the well. With these plans in mind, NEA is making a request to have its exploration well designated as "gas only" or "no hydrocarbons." We believe the available data support our request and hope that the AOGCC and the ADEC can grant our request in a timely manner. There have been no significant oil shows anywhere near the area and only a few isolated gas shows in wells located away from our location. The regional geology strongly suggests that we are not in an area likely to contain recoverable quantities of oil or gas and that there is a reasonable certainty that no oil will flow to the surface. This well is not being drilled to explore for either oil or gas. Enclosed is a letter NEA sent to the Alaska Department of Environmental Conservation (ADEC). Following past practice, we understand that the AOGCC and the ADEC will work together in evaluating our request. With respect to our request to classify our well as "gas only" as provided for in AS 31.05.030(1), we understand that the AOGCC will make this determination and forward its decision on to the ADEC. We actually believe that the well qualifies for a "no hydrocarbon" determination, but this type of ruling would deviate from normal practice. Accordingly, also enclosed are certain public and confidential data and information in support of our request. We ask that the confidential information be held confidential by the AOGCC as provided for in AS 31.05.035. This confidential information has not been supplied to the ADEC. Our first well will be located near the intersection of Sections 14 and 23, T 17S, R 44W SM. Our first preference would be to have any well drilled within a one mile radius of the well classified or designated by the AOGCC as a "gas well' or "no hydrocarbons" well for RPS purposes. This designation will allow NEA the flexibility within reasonable limits to move both surface and bottom hole well locations to optimize its upcoming exploratory drilling program. Given the consistency of the subsurface data we believe that a designation covering the one mile radius is fully supported by the information and is a conservative area for this designation. While we have included in this submittal some pertinent summary information for select wells taken from our files and the AOGCC well files, for efficiency, we have not copied the entire well file or logs for each of the existing wells in the general area of our proposed well. The complete well files and well logs are readily available in-house to you and your staff. A map of the wells in the area is enclosed as part of a montage poster, as well as a surface outcrop map showing the well location, a geologic cross section, and two reports prepared by Alaska Earth Sciences. We request that the two written reports be held confidential and they are stamped "Confidential'. NEA believes that the "gas well' or "no hydrocarbons" classification for our proposed well is supported by the facts and will result in considerable operational cost savings for this well and other wells that may follow in the future in the same area. NEA strongly believes that the information and analysis support this request, while still providing for strong protection of the environment. As provided for in the regulations, if information obtained from this well during or after drilling indicates that a "gas only" or "no hydrocarbons" designation is not warranted, NEA will notify the AOGCC and ADEC immediately and amend its plans accordingly. If you have any questions concerning these requests please contact me or the Project Permitting Coordinator, Cord Feige. Ms. Feige can be reached at (907) 232-1192. Sincerely, Donna Vukich General Manager CC: Betty Schorr, Program Manager, ADEC ; w/o confidential enclosures Enclosures • 0 Report on Shallow Gas Hazard Assessment (CONFIDENTIAL) Report on Expected Well Geology (CONFIDENTIAL) Plate—Naknek Lake Area Regional Geology Plate—Alaska Peninsula Oil and Gas Resource Series Plate 3 of 4 Plate—Stratigraphic Correlation Section North Aleutian Basin Sheet F-1 hIMMIMINDVIIA 0 NAKNEK ELECTRIC ASSOCIATION, INC. POST OFFICE BOX 176 - NAKNEK ALASKA 99633 • PHONE 907 246.326' • FAX 90.' 246,6, ' August 17, 2009 Ms. Betty Schorr, Program Manager Department of Environmental Conservation Division of Spill Prevention and Response Industry Preparedness Program 550 Cordova Street Anchorage, AK 99501 RE: Naknek Electric Association, Inc King Salmon Exploration Well Request for Classification as Gas Well or No C -Plan Required Dear Ms Schorr: Naknek Electric Association, Inc. (NEA) is making plans to drill an onshore exploratory well in the King Salmon area. We hope to begin drilling our first well, the Naknek-G #1 well as early as August 15, 2009. The well is intended to explore for geothermal resources. We do not anticipate encountering any oil in the well and there is only a very slight chance that we will encounter any gas in the well. In all likelihood, our first well will be designed and drilled to a depth no deeper than 12,000 feet subsea. Subsequent wells will be designed and located in the future to further delineate geothermal resources in the area. It is our understanding that the AOGCC is reviewing the well design and drilling program for the deeper parts of this well based on its health and safety criteria. The Department of Natural Resources has already issued a geothermal permit to drill (Permit #2215) for the well, and this permit will govern and be used to spud the well and drill the shallow portions of the well. NEA is applying to the AOGCC for a permit to drill and the AOGCC permit to drill will be used to govern the deeper portions of the well. With these plans in mind, NEA is making a request to have its exploration well designated as "gas only" or "no hydrocarbons." We believe the available data support our request and hope that the ADEC and the AOGCC can grant our request in a timely manner. There have been no significant oil shows anywhere near the area and only a few isolated gas shows in wells located away from our location. The regional geology strongly suggests that we are not in an area likely to contain recoverable quantities of oil or gas and that there is a very, very low probability that any liquid hydrocarbons could or would flow to the surface. This well is not being drilled to explore for either oil or gas. Enclosed is a letter NEA sent to the AOGCC. Following past practice, we understand that the AOGCC and the ADEC will work together in evaluating our request. With respect to our request to classify our well as "gas only" as provided for in AS 31.05.030(1), we understand that the AOGCC will make this determination and forward its decision on to the ADEC. We actually believe that the well qualifies for a "no hydrocarbon" determination, but this type of ruling would deviate from normal practice. Our first well will be located near the intersection of Sections 14 and 23, T 17S, R 44W SM. Our first preference would be to have any well drilled within one mile of this location classified or designated by the AOGCC as a "gas well' or "no hydrocarbons" well for RPS purposes. This designation will allow NEA the flexibility within reasonable limits to move both surface and bottom hole well locations to optimize its upcoming exploratory drilling program. Given the consistency of the subsurface data, we believe that a designation covering this one mile radius is fully supported by the information and is a conservative area for this designation. NEA believes that the "gas well' or "no hydrocarbons" classification for our proposed well is supported by the facts and will result in considerable operational cost savings for this well and other wells that may follow in the future in the same area. NEA strongly believes that the information and analysis support this request, while still providing for strong protection of the environment. As provided for in the regulations, if information obtained from this well during or after drilling indicates that a "gas only" or Ono hydrocarbons" designation is not warranted, NEA will notify the AOGCC and ADEC immediately and amend its plans accordingly. A copy of this letter was sent directly to the AOGCC. In addition, we have provided the AOGCC with our confidential geological, geophysical and engineering information and evaluations. If you have any questions concerning these requests please contact me or our Project Permitting Coordinator, Cord Feige. Ms. Feige may be reached at (907) 232-1192. Sincerely, ��p Donna Vukich General Manager Cc: Commissioner Cathy Foerster Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (With additional confidential information) 9 10 PEIROLEUM NEWS • WEEK OF AUGUST 23, 2009 • ALTERNATIVE ENERGY kocl ,%A(;� NEA spuds King Salmon geothermal well Exploration targets potential resource under the eastern end of Alaska Peninsula; could provide power for local communities By ALAN BMLEY Petroleum News fter more than 10 years of investiga- tion and planning by Southwest Alaska electric cooperative, Naknek Electric Association, the co-op's first geothermal exploration well, the Naknek-G No.l, is auguring its way toward possible hydrother- mal fluids in rock fractures 9,000 to 12,000 feet below the eastern end of the Alaska Peninsula. The well, located about seven miles northeast of King Salmon at township 17 south, range 44 west, section 14 of the Seward meridian, spud Aug. 16, Donna Vukich, NEA's general manager, told Petroleum News Aug. 17. "We're moving forward now," Vukich said. A crew from geothermal contractor Morning fog rolls around Naknek Electric Association's No. T rig, as the rig prepares to drill ThermaSource is doing the drilling using rig for a geothermal energy source near King Salmon, at the eastern end of the Alaska No. 7 that NEA has purchased from Peninsula. Wyoming -based DHS Drilling. NEA expects it to take about 70 days to drill to the target depth range, but the co-op has allowed for a contingency of another 30 days to drill to 14,000 feet, if that proves necessary, Vukich said. New power source The co-op hopes that a multiwell geot- hermal deep drilling program will establish a new power source for up to 30 communities in the Naknek region, to provide relief from the escalating fuel costs that have hit rural Alaska in recent years. The cost of the Naknek-G No.I well is estimated at $13.5 million, with an addition- al cost of $1.4 million if the well has to drill all the way to 14,000 feet. The U.S. Department of Energy is funding the project to the tune of nearly $2.9 million under a grant secured by Sen. Ted Stevens. Sen. Lisa Murkowski is trying to secure another $2.5 million for the project through the Energy and Water Appropriations Bill, Vukich said. NEA will itself cover costs not met through DOE funding. The Alaska Peninsula is noted for vol- canic activity; oil exploration wells close to the Naknek region have encountered tem- peratures in the range 250 to 300 degrees Fahrenheit at depths around 12,000 feet, Vukich told Petroleum News in 2007. And if the geothermal drilling meets with success, hot subterranean water, perhaps flowing though fractures associated with a major geologic fault in the region, might drive what is termed a binary geothermal system, a sys- tem in which the geothermal fluid vaporizes a lower -boiling -point fluid such as a refriger- ant, with vapor from the lower -boiling -point fluid then driving a turbine -powered electric- ity generator. This type of geothermal power system has already been successfully demonstrated at the Chem Hot Springs Resort in Interior Alaska, using geothermal water at just 165 degrees Fahrenheit. Geothermal indications Some thermal anomalies identified from thermal imagery obtained in the Naknek area 12 to 15 years ago during a search for coalbed methane first suggested the possi- bility of geothermal energy in the region. And subsequent soil sampling found soil chemistry indicative of underground geot- hermal activity. NEA then carried out shal- low drilling at three possible deep drilling sites and discovered subsurface soil chem- istry that confirmed the geothermal potential of the area. NEA has conducted a 3-D seismic survey to try to pinpoint a drilling target. However, the volcanic nature of the subsurface rocks rendered the seismic data analysis inconclu- sive, causing the co-op to use other geophys- ical techniques such as ground magnetics to determine where to drill, Vukich said. And if the drilling program proves suc- cessful, NEA anticipates building a 25 - megawatt power plant, expandable in stages to 50 megawatts, with a transmission net- work tying the power supply to the various regional communities. Geothermal power could not only reduce the cost of living for residents of the region — it could also trig- ger a resurgence in the regional fishing industry. "Our region has been known for devel- opment and being self-sustaining. We want to get back to that," Vukich said in 2007. ... That's why tying in the region is so important. That can change 25 to 30 vil- lages overnight if the cost of power is affordable." 9 Rpt., i Management Summary l ii it Naknek Electric Assacizittl6 i��. Well ID::G-1 Well N fte:: 0 0 r Management'Surrmary;Report . Iknek' EleciC Ass©ciatiorr; lnc. Well ID:, G-1 Well Name: G-1 Field: Other .'Sect,14 Ttswn 17S' Rng:44W County:,BdiWl ,Ba}i Bc>tottgh= Rpt. No. Date MD (ft) ND (ft) Management Summary 17 01 -Sep -09 620 397 Resolved power issues. Conducted PJSM / pre -drilling ahead meeting with all on location. Clear expectations set. 18 02 -Sep -09 1,215 1,215 Drilled ahead with a few minor problems (which were corrected). No accidents. No incidents. No spills. 19 03 -Sep -09 1,720 1,720 Drilling 20" open hole section with BHI VertiTrak system at 1,720' MD. Generated 37 super sacks with processed drill cuttings. 20 . 04 -Sep -09 2,200 2,200 Drill 20" open hole section with VertiTrak system to projected TD at 2,965'MD. Processed 18 super sacks with drill cuttings. Placed in temporary storage pit. Removed generator from Top Drive unit. Sent to Anch for repair and return. 21 05 -Sep -09 2,670 2,670 Drilling 20" open hole section with VertiTrak to 2,670' MD. Centrifuge down. Repair man to arrive today. Drill 20" open hole section to TD, proposed depth of 2,965' md. Circulate and condition hole. Pull out of hole. Run open hole E -line logs with Baker Atlas. Processed 20 super sacks of cuttings. 22 06 -Sep -09 2,890 2,890 Drill 20" open hole from 2,670' to 2,890'. Bit quit drilling. Decision made to TD hole section. Circulate and condition open hole. Make 10 stand short trip to 1,865'. Work thru several tight spots. RIH from 1,865' to 2,890'. Wash and ream thru fill 186' to bottom. Circulate and condition mud. POH to run open hole logs. 23 07 -Sep -09 2,890 2,890 Drill 20" open hole section to 2,890'MD. Run Baker/Atlas Open hole logs, Acoustic, Sonic, Density, and Caliper tools. Run in hole with 16" casing. 24 08 -Sep -09 2,890 2,890 Run 16" casing to 2,885'md. Cement casing. 25 09 -Sep -09 2,890 2,890 Cement 16" casing. No cement to surface. Located top of cement at 120'. Pump cement to top area of 16" x 22" annulus. Nipple down 21-1/4" BOP stack. Cut off 21-1/4" test spool. Weld on 16-3/4" test spool. Nipple up 16-3/4" BOP stack. 26 10 -Sep -09 2,890 2,890 Complete 40 bbl cement top job on 16" x 22" casing annulus. Install 16-3/4" casing head on 16" casing. Nipple up 16-3/4" BOP stack. 27 11 -Sep -09 2,890 2,890. Move in and nipple up 16-3/4" BOP stack. Pressure test BOP stack. Replace power cable for top drive. Finish fabricating drilling riser and flow line. 28 12 -Sep -09 2,890 2,890 Complete BOPE test, witnessed by AOGCC PI Lou Gramaldi. Change out manual and HCR valve on choke line. Change out top drive service loop. Install drilling riser and flow line. 29 13 -Sep -09 2,890 2,890 Make up BHA. New tripping procedure to reduce thread damage to monel drill collars. Run in the hole to clean out 16" casing. Continue to trouble shoot electrical issues. 30 14 -Sep -09 2,910 2,910 Pressure test casing to 1,000 psi. Perform formation integrity test to 12.5 ppg MWE. All testing witnessed by AOGCC PI Lou Gramaldi. Discovered tapered shaft damage. Suspend drilling operations to rebuild drawworks. 31 15 -Sep -09 2,910 2,910 Remove Drawworks from Rig Floor with crane to ship to Anchorage for repair and return. Move top drive skid to NEA for repair and return. Circulate well every 12 hrs. Monitor well while conducting rig repairs. 32 16 -Sep -09 2,910 2,910 Monitor well during suspended drilling operations. Thermasource to put together maintenance plan forward to repair or replace equipment during suspened drilling operations. 33 17 -Sep -09 2,910 2,910 Continue to monitor ongoing repairs of drawworks drum in Anch at NOV shop. Updating costs sheet with completed PO's from project start up. 34 18 -Sep -09 2,910 2,910 Continue drawworks repair at NOV shop in Anchorage. Top Drive cat engine at NEA shop for repairs. Work thru general rig maintenance list prepared by Thermasource Toolpushers. 35 19 -Sep -09 2,910 2,910 Continue drawworks repair in Anch. Inspect tapered shaft. Results determine shaft cannot be properly repaired. Replacement shaft ordered from Casper, WY. NEA & Thermasource Management reviewed goals and expectations with drilling crew. 36 20 -Sep -09 2,910 2,910 Decision made to repair drawworks shaft at Superior Machine shop in Anch. o.;..*ems• 413.4s ao_n,.f_no RIMRase Page: 1 of CONFIDENTIAL CONFIDENTIAL Printari• 19.15 1 Page: 2 of 2 Management Summary Report `:: ` ;' -- . -:iknek,E_Iavtr c Association ; lnc, Well lb. G-1 ' F. Well Name: Cs -1 Field: Other ;. Sect: 14. Town:,17S Rng: 44W't,ounty Bristol Bay Borough Rpt. No. Date MD (ft) TVD (ft) Management Summary Continue to monitor wellbore. 37 21 -Sep -09 2,910 2,910 Decision made to repair drawworks shaft at Superior Machine shop in Anch. New shaft has been ordered as a contingency. Continue to monitor wellbore. 38 22 -Sep -09 2,910 2,910 Drawworks repairs continue in Anch at NOV and Superior Machine Shop. 39 23 -Sep -09 2,910 2,910 Drawworks repairs continue in Anch at NOV and Superior Machine Shop. 40 24 -Sep -09 2,910 2,910 Drawworks repairs continue in Anch at NOV and Superior Machine Shop. 41 25 -Sep -09 2,910 2,910 Drawworks repairs continue in Anch at NOV and Superior Machine Shop. 42 26 -Sep -09 2,910 2,910 Received rebuilt drawworks from Anch on herc. Install drawworks on rig floor. Test run drawworks. Resume drilling operations. 43 27 -Sep -09 2,910 2,910 Completed repairs to Rig equipment and power units. Button up components. Circulate & travel with Top Drive. Drill ahead. 44 28 -Sep -09 3,400 3,400 Held pre- drilling safety meeting and discussed Plan forward. Commenced drilling @ 07:00 hrs on 9/28/09. Drilled ahead trouble free. Maintained vertical wellbore. 45 29 -Sep -09 3,780 3,780 Directionally drilled ahead to 3,536' md. POH to shoe. Slip & cut drilling line to repair bad spot (Lebus grooves on drum on drawworks appears worn out). RIH: Drill ahead trouble free to 3,78' md. Maintain a vertical wellbore. 46 30 -Sep -09 4,230 x'`4,230 rilled to 3,728' md. Serviced Rig. Drilled to 4,056' md. Lost total returns. Conditioned mud & pumped LCM pill. Drilled ahead w/ partial, then total returns, while treating w/ LCM.. CONFIDENTIAL Printari• 19.15 1 Page: 2 of 2 T 10!09/2009 <,C,,1�5 Al NFA q07 43? 372z j07 Z4& 36St tt 24(o gtut NAKNEK ELECTRIC ASSOCIATION, INC. POST OFR.'E BOX ,18 • NAKNEK ALASKA 99633 • PHONE ,190'1246.426; -FAX r9,' "- 245.62-2 August 4, 2009 Commissioner Thomas E. Irwin Alaska Department of Natural Resources 550 W. 71h Avenue, Suite 800 Anchorage, AK 99501 RE: Request for Amendments to Geothermal Permit to Drill #2215 Well Naknek-G #1 5 Miles NE of King Salmon, AK T17S, R44W, SM, Sec 14 E1/2SW1/4 & Sec 23, NE1/4NW1/4 Dear Commissioner Irwin: We appreciate the opportunity to meet with DNR earlier this week to discuss NEA's concerns regarding the above -referenced permit to drill. We hope that DNR found the information we presented useful. It was helpful for NEA to hear DNR's perspective on NEA's concerns. To the greatest extent feasible, NEA is seeking permit amendments that help address NEA's concerns while remaining consistent with DNR's responsibilities as the regulatory authority for geothermal drilling. In accordance with the procedures defined in Geothermal Permit to Drill #2215, Naknek Electric Association ("NEA") requests the following amendments to the Mitigation Measures and Stipulations outlined in Attachment (1) of that permit. Item # 1.) "While drilling surface well bore, incorporate a high capacity flow diverter system in compliance with all provisions of 20 AAC 25.035 (b) and (c)." Proposed Amendment: NEA proposes to make the following changes to the drilling program, which will eliminate the need for a high capacity flow diverter. The following solution addresses DNR's safety concerns and allows for the timely continuation of NEA's drilling program: Drill the known interval of glacial gravels from 0 to 400 feet with a 30" flow nipple, then run and cement 22" casing to 400ft. Install a 21-1/4", 2M BOPE and drill out the 22" casing to the flow collar. At this point, pressure test the casing and the 21-1/4" BOPE. Drill below the 22" casing down to 3,000ft. At 3,000ft, set and cement the 16" casing, install the 16-3/4",5M BOPE, test the casing and BOPS, and proceed to drill below the 16" casing to 8,000ft. At 8,000ft, set and cement the 11-3/4" casing, install the 13-5/8"joM BOPE, test the casing and BOPE, and proceed to drill below the 11-3/4" casing from 8,000ft to TD (14,000 feet maximum). Discussion: During the meeting with Alaska Department of Natural Resources ("DNR") personnel on August 3, 2009, it was communicated to NEA that the use of a high capacity flow diverter was required in order to ensure the safety of drilling operations in the "unknown," near surface, interval wherein shallow pockets of pressurized natural gas could pose a threat to the safety and integrity of drilling operations. It was also established that the interval between the surface and 400 feet had been previously drilled within 2,300 feet of the Naknek-G #I location, and was known to be free of gas in that interval. The "unknown" interval in the Naknek-G # 1, therefore, remains as that interval between the 400 foot depth level and the bedrock interface. The bedrock interface has been modeled from the geophysical data, as presented at the August 3, 2009 meeting, as residing between 400 feet and 700 feet. NEA is keenly concerned about the safety of our personnel and the overall safety and integrity of our operations. Hence, in an effort to address DNR's safety concerns, NEA proposes the aforementioned changes to the drilling program in order- to ensure that each stage of the well is drilled in a controlled fashion, with appropriate precautionary measures in place. Item #2.) "Upon commencement of open hole drilling operations below surface casing, incorporate BOPE rated to 5000 psi working pressure, and in compliance with all provisions of 20 AAC 25.035 (e)." Proposed Amendment: Increase BOP capacity as drilling progresses, utilizing the following BOP stacks for each interval of the well: • 3o" Flow Nipple — No BOPE — Surface to 400 feet 21-1/4" x 2,000 psi BOPE — Proposed for drilling below the 22" casing from 400ft to 3,000ft • 16-3/4" x 5,000 psi BOPE — Proposed for drilling below the 16" casing from 3,000ft to 8,000ft • 13-5/8" x 10,000 psi BOPE — Proposed for drilling below the 11-3/4" casing from 8,000ft to TD at a maximum depth of 14,000ft. Discussion: The attached Depth vs. Pressure diagram shows the maximum expected pressure for the each drilling stage of the Naknek-G #1, based upon the condition of a fracture gradient of 0.6 psi/ft which is typical of volcanic formations. Based upon these pressure calculations, the staged BOPE approach is both appropriate and maintains compliance with 20 AAC 25.035(e). Diagrams showing each BOPE stage are attached in Appendix I. Item #3.) "Perform BOPE function pressure tests each 7 days, in compliance with all provisions of 20 AAC 25.035 (e) (10)." Proposed Amendment: Clarify that BOPE function pressure testing procedure will be carried out as outlined below. Discussion: After cementing each casing string (22" at 400ft, 16" at 3,000ft, 11-3/4" at 8,000ft, and 8-5/8" at 10,000ft), the corresponding BOPE stack for each stage will be installed. For each case, the BOPE stack and the casing will be pressure tested after drilling off the cement below the float collar and before drilling off the float shoe. The casing testing pressures will be as follows: • 22" — 400 psi • 16" — 1,000 psi • 11-3/4" — 1,000 psi • 8-5/8" — 1,000 psi Every seven (7) days, the BOPE will be function tested for 15 minutes against a testing packer. The BOPE function test pressures will be as follows: • 21-1/4" x 2M — 2,000 psi • 16-3/4" x 5M — 3,000 psi • 13-5/8" x 10M — 3,000 psi Item #8.) "An operator shall record and report geothermal well operations in compliance with all provisions of 20 AAC 25.070. A geothermal well shall be logged in accordance with 20 AAC 25.071. Other geothermal well records and reports shall be handled according to 20 AAC 25.3oo,2o AAC 25.310, and 20 AAC 25.320. All reports will be provided to the Alaska Division of Oil and Gas and the Alaska Oil and Gas Conservation Commission." Proposed Amendment: Limit reporting and record keeping obligations to those imposed by 11 AAC 87. Delete Item #8 and amend Item #14 language to address confidentiality issues as discussed below. Discussion: As mentioned during the August 3, 2009 meeting, NEA is requesting that its reporting obligations be limited to those imposed by 11 AAC 87. The regulation found at 11 AAC 87.110 specifies the record-keeping requirements for geothermal drilling. Item No. 8 of Attachment (1) to the permit would require NEA to comply with a variety of reporting requirements from the Alaska Oil & Gas Conservation Commission's oil and gas reporting regulations in 20 AAC 25. This is neither appropriate nor necessary to protect the public health, safety or the environment. It is also inappropriate to require NEA to submit reports to the AOGCC given that it has no permitting authority over this drilling project. However, in a spirit of cooperation, NEA will not object to DNR's submission of NEA reports to the AOGCC. NEA further requests that all data submitted to DNR be held as confidential until such time as NEA provides written authorization for release of the information. The State of Alaska I] • has no proprietary interest in the resource NEA is developing (the State of Alaska was never in the chain of title for NEA's property or the surrounding parcels). As a result, NEA should not have to submit information regarding production of the well or geologic information derived from the drill. NEA is nonetheless willing to share such information with the ADNR so long as NEA can be assured that the information will be kept confidential. Under AS 38.05.035(a)(8), the information submitted by NEA should be kept confidential, regardless of the lack of a state ownership interest in the NEA property. That statute provides that: the following records and files shall be kept confidential upon request of the person supplying the information: (C) all geological, geophysical, and engineering data supplied, whether or not concerned with the extraction or development of natural resources; (D) except as provided in AS 38.05.036, cost data and financial information submitted in support of applications, bonds, leases, and similar items; As a result, NEA requests that Item No. 8 of Attachment (1) be deleted. NEA also requests that the following language be inserted in Item No. 14 of Attachment (1): "All information submitted by NEA pursuant to its permit application, this permit or under the requirements of 11 AAC 87, shall be maintained as a confidential record by the Department (and by AOGCC if the Department shares such information with AOGCC)." Based upon the material presented herein and attached to this document, NEA respectfully requests that the Alaska Department of Natural Resources approve the proposed amendments to Permit to Drill #2215. NEA firmly believes that the proposed Naknek-G # 1 drill program and the proposed amendments to Permit to Drill #2215 present no threat to the public health, safety, the environment, or the resource being sought. Thank you very much for you consideration. Sincerely, Naknek Electric Association, Inc. Donna Vukich General Manager Cc:/ Jonne Slemons, ADNR, Division of Oil and Gas Matt Rader, ADNR, Division of Oil and Gas Susan Browne, ADNR, Division of Oil and Gas Cc:/ Commissioner Kathy Foerster, AOGCC Winton Aubert, AOGCC Shaun Peterson, ADNR John Hartz, ADNR Gary Friedmann, Alaska Earth Sciences Corri Feige, Castle Mountain Group, Inc. V[A C=. �� I � ,1 ! 91` f /C �i �-." F' ,e• "�'fi!` � :,.v ►' CI .rr+ V is ' I'� {, Vli �.+� � � y � �4: i.," ti .v p ' �y ��,�,` 4� sl 50 { !�� `7 ��. i ' �% ;} <.^. U-Ai(4 �.+ 1� E r "/ r„� 4,l r� ta""F �y "✓` ',r-� �,f::L `- / !y y k'! 4/,.'�./rK {, f.a3 �5�`eYA, f. Y�. �3 t ! ` jIi �Ya 1. / E�, 1'; f �.l' Fie. r G. A/P' ///� L f l t"'�t✓ Y f I 4 Nc :nL � � ^f � ✓ � � �� c� ! 2 Z 2 J �. i �.'' �( �� : d t•% � � � � � �� tn. � l i!' � (�' !.l Y c: y, � i , � ` �: i ' . �.Y,. �;`� f � r R: � j� � iii , , I X, �`�^; i°; r 'yj: :'� I r V V i� �/ + � l i ?:�1.�.� ' (i �:i.�.•i r.�' d�. ��•f...?,%' �4 '�! f:'� � �� i� r � 19`.( '�'� (( "v/!" '' r � � 4( x � J � � `. '....(.i �> �.�� ,f '' � � ' . �. r:;;s' � � � �.:.,..e VN'!�a! �' ' a„�; �a .f � � �, , w:� f �.� �a� � <. •,.{� 1 , �, 1 �•d e ;/ y"ei '' ✓l' 'VLi �vid'✓'.f`d ��/`ti' .f.4/? '/.,/�'w �: j nt� �' ' ,✓�,� �l !.!/ 'tri 41 ('P FfF�' � �`} ? i � I � � `� , :'1 '. � �.� `� � �i f` , i��1 r�_ 1 � ?Y :1 r. Cj�"g�" !�+i •.,^ .. ��`� ��:�� f,! i Yq•;j f `i(: f�� .� ,4 l;ri lJ � �- � r�i/i/`"'A��. �! t�� ..,d•" t 1�� 4. '6')pt S Ix—C[L —V"� b--,-- ld41u �i('j ,� ,�,,r/ /' C � �LCI�C► � C/r �/.t r �. 7 � Y v� �s �L� � �-� , 1 r : `• �p, r � 1 � �iWi P vf%'1 �U - �Y K.1 1 L ,/t lA !'. � "� J f �.i i , ' •,:. r � � r '� I� �. 'U M. -'C �U' Lf ^' �% � r— � l�/ � � v`•'�/Q `'E -!1l/' r! �! 1 , 1 � � \,l�.a ��t'�t.� c y.. '''�*^•,..?? lr �!'+.(! : i� � t ri�% . • APPENDIX I • AMENDED BOPE DIAGRAMS NAKNEK-G # 1 GEOTHERMAL EXPLORATION WELL m 2000 Of 10000 12000 14000 0 • Well NG -1 - Pressure Gradients Vs. Depth 0 2000 4000 5030 6000 8000 10000 Pressure (psi) Nl A5 P = 5030 - 0. (140 00 3�3o pu 22" casing at;00 feet i 16 -inch casing at 3,000 feet 11-3/4" casing at 8,000 feet Expected Geoth rmal Reservoir Pressure radient 0 2000 4000 5030 6000 8000 10000 Pressure (psi) Nl A5 P = 5030 - 0. (140 00 3�3o pu Figure 5 Naknek Geothermal Project EQUIPMENT FOR DRILLING BELOW 30 -INCH CONDUCTOR TO 400 FT ✓ Kill Line p Line GeothermEx, Inc. 2009 Figure 6 Naknek Geothermal Project r Blowout Prevention Equipment for Drilling Below 22 -inch Casing +0 3000 GeothermEx, Inc. 2009 Figure 7 Naknek Geothermal Project BLOW OUT PREVENTION EQUIPMENT l FOR DRILLING BELOW 16 -INCH INTERMEDIATE CASING 1 C � 000 . tiZco P�" 100 GeothermEx, Inc. 2009 ON • Figure 8 Naknek Geothermal Project BLOWOUT PREVENTION EQUIPMENT FOR MUD DRILLING BELOW 11 -3/4 -INCH INTERMEDIATE CASING -� o (q00 D , 13-5 12" (Nomir Master V 16-3/4",3 x 12", 2M exp spool 13-3/8", 72 #/ft N-80, Csg. Flush Joint Connection 16-3/4" SOW 3M casing hea( Ms. r -u C� d . 1400 =silo 12M Trim Side es i", 5M Trim Side ves GeothennEx, Inc. 2009 Maximum allowable non -shock pressure (psg) and temperature ratings for steel pipe flanges and flanged fittings according the American National Standard ANSI 816.5 -1988. Maximum Allowable ran -shock Pressure (psig) Pressure Class (b) 150 300 400 600 900 1500 2500 Temperahm t°F) uratic Test Ressrre (prig) 450 1125 1500 2225 3350 5575 9275 -20 to 100 285 740 990 1480 2220 3705 6170 200 260 675 900 1350 2025 3375 5625 300 230 655 875 1315 1970 3280 5470 400 200 635 845 1270 1900 3170 5280 500 170 600 800 1200 1795 2995 4990 600 140 550 730 1095 1640 2735 4560 650 125 535 715 1075 1610 2685 4475 700 110 535 710 1065 1600 2665 4440 750 95 505 670 1010 1510 2520 4200 800 80 410 550 825 1235 2060 3430 850 65 270 355 535 805 1340 2230 900 50 170 230 345 515 860 1430 950 35 105 140 205 310 515 860 1000 20 50 70 105 155 260 430 Permit No. 2215 — Geothermal Permit to Drill August 7, 2009 Attachment (1) Permit to Drill Mitigation Measures and Stipulations 1. The operator will drill the known interval of glacial gravels from 1 to 400 feet with a 30 -inch flow nipple, them run and cement the 22 -inch casing to 400 feet. a. Install a 21-1/4 inch, 2M blow out protection equipment (BOP and drill out the 22 -inch casing to the flow collar. At this point, pressure test the casing and the 21 % inch BOPE. Drill below the 22 -inch casing down to 3,000 feet. b. At 3,000 feet, set and cement the 16 -inch casing, install the 16 % inch, 5M BOPE, test the casing and BOPE, and proceed to drill below the 16 -inch casing to 8,000 feet. c. At 8,000 feet, the operator will provide well and drilling operation information to ADNR to acquire approval to continue drilling deeper than 8,000 feet depth. Permit stipulations for continued drilling and the appropriate casing program will accompany the approval for drilling at that time. 2. The BOPE equipment shall adhere to the following conditions: a. A 30 -inch flow nipple with no BOPE from the ground surface to 400 feet depth. b. A 21 % inch x 2,000 psi BOPE will be used for drilling below the 22 -inch casing from 400 feet to 3,000 feet depth. c. A 16 % inch x 5,000 psi BOPE will be used for drilling below the 16 -inch casing from 3,000 feet to 8,000 feet. d. At 8,000 feet, the operator will provide well and drilling operation information to ADNR to acquire approval to continue drilling deeper than 8,000 feet depth. Permit stipulations for continued drilling and the BOPE operations will accompany the approval for drilling at that time. 3. The BOPE function pressure testing procedures will be carried out as outlined below: a. After cementing each casing string (22 -inch at 400 feet, 16 -inch at 3,000 feet to 8,000 feet), the corresponding BOPE stack for each stage will be installed. For each case, the BOPE stack and casing will be pressure tested after drilling of the cement below the float collar and before drilling off the float shoe. The casing testing pressures will be as follows: • Permit No. 2215 — Geothermal Permit to Drill August 7, 2009 continued, 1.) 22 -inch — 400 psi 2.) 16 -inch —1,000 psi 3.) 113/4 inch —1,000 psi (future) 4.) 8 518 inch — 1,000 psi (future) • b. Every seven days, the BOPE will be function tested for 15 minutes against a testing packer. The BOPE function test pressures will be as follows: 1.) 21 %-inch z 2M — 2,000 psi 2.) 163/4 -inch z 5M — 3,000 psi c. For drilling deeper than 8,000 feet, prior approval from ADNR is required. Permit stipulations for continued drilling and the BOPE testing procedures will accompany the approval at that time. 4. Provide the ADNR and AOGCC with 48 hours advance notice of rig up and each BOPE function or pressure test, so that the ADNR/AOGCC representative drilling inspector can inspect the rig or witness the test. 5. Perform pressure tests of all casing strings, in compliance with all provisions of 20 AAC 25.030 (e). 6. Perform integrity of leak off testing below all casing strings, in compliance with all provisions of 20 AAC 25.030 (f). 7. Conduct all operations and maintain the drill site at all times in accordance with all provisions of 20 AAC 25.526 and 20 AAC 25.527. 8. All casings will be cemented to surface. In case of hung casing strings, they will be cemented throughout the linerlap. Fresh water aquifers shall be completely isolated from contacting any geothermal or drilling fluids. 9. The shallower water supply well, with an estimated depth of 250 feet (the development well), to be drilled during the construction phase, falls within the standard reporting requirements, and a full well log is therefore required. Standard water well construction practices are required so as to prevent inadvertent water flow between lithologic layers. The well log will be submitted to the Division of Oil 2 Permit No. 2215 — Geothermal Permit to Drill August 7, 2009 and Gas and the ADNR Division of Mining, Land and Water, Water Resources section upon completion of the well. 10. If water in the geothermal exploration well does not meet the definition of geothermal fluid as defined in AS 41.06.060 (2), it is subject to the statutes and related regulations of the Alaska Water Use Act. 11. If and when a water right application is filed for the geothermal exploration well, a full .pdf or other electronic well log is to be attached to the water rights application for reference purposes should future review become necessary. The Well Log Tracking System (WELTS) program requirements would be satisfied with a well log not exceeding 999 ft in depth, with a notification that the actual depth exceeds this limit and a statement as to the final depth reached. 12. The operator must report a release of any oil or hazardous substance in accordance with Alaska Department of Environmental Conservation standard reporting guidelines. These are the types of oil and hazardous substances that may be on site. Chrome -free ligno-sulfonate 1 lignite products Circulating fluid (must be maintained at a pH of approximately 10) Amine inhibitor to mitigate high corrosion rates Drilling muds (bentonite, caustic soda, lime) (described in Appendix A) Fuel for Well pad (generator facility, fuel for man camp, any hydraulic fluids for equipment and machinery, support vehicles) Cement used in drilling operation 13. Records 11 AAC 87.110 (a) An operator of a well shall keep detailed and accurate drilling and well logs, core records, production and inspection records, and, if taken, appropriately bagged and identified samples of drill cuttings. (b) The logs for geothermal wells must show the lithologic characteristics and depth of formations encountered; the depths and temperatures of water -bearing and steam -bearing strata; any data obtained about the temperatures, chemical compositions and physical characteristics of fluids encountered; the amount, size, and weight of casing used; and the size, type, and density of perforated intervals. 3 Permit No. 2215 — Geothermal Permit to Drill August 7, 2009 (c) The temperature log must be obtained by either continuous temperature logging or by a comprehensive multiple point temperature survey. (d) The core record must show the depth and character of cores obtained, as determined from the study and analysis of the core. (e) The drilling log must describe in chronological order and on a daily basis all significant operations carried out and equipment used during all phases of drilling. The results of testing blowout prevention equipment must be recorded on the drilling log and the blowout protection test form provided. For eaaloration.wells, a weekly report of drilling and workover operations which summarizes the daily record of well operation during the previous week must be filed with the department each week. (f) Records fisted in (a) - (e) of this section must be kept at the drill site or local office of the operator, available for inspection at reasonable times by the commissioner, and must be submitted to the department with the completion report required in 11 AAC 87.190. Records and reports shall be kept in the state for five years after the date of well abandonment. (g) Monthly statements required by 11 AAC 87.210, and records of the inspections conducted under 11 AAC 87.250, for the preceding calendar month, must be filed with the department by the last day of each calendar month. (h) The operator shall file with the department, within 30 days after completion, abandonment, or suspension of the well and within 30 days after completion or plugging of a well branch, if occurring at a different time, a complete well and log form including the tests required by this permit and summary of daily well operations reporting drilling depth, abnormally geo-pressured strata, lost circulation and other hole difficulties encountered, simulated kick drills, mud weight, and a brief description of principal items of work done, such as running and cementing casing, drill stem tests, BOP tests, diverter tests, coring, sidewall sampling and logging. (i) Upon request of the department after completion, abandonment, or suspension of the well or completion or plugging of a well branch, file with the department a copy of the daily record required by these regulations 11 AAC 87.110. (j) This permit does not limit or restrict the authority of the department to require the furnishing of those additional reports, data, or other information relative to drilling and geothermal resource production, and relative to injection operations on land in the state, as the department considers to be necessary or desirable, either generally or specifically for the prevention of waste, the protection of correlative rights, the prevention of fluid movement into freshwater sources, and the conservation of natural resources. 4 Czeo -F-✓tea.! �T�� 1� cir�� vejS vs "Ddb IV s C7 Y' c Zo� ✓�S nt� JZYe +a -V- ✓7 ",�►le HA -,O -,It . 5 V re,S mire el u.� r -c /�.(o �4 r U�-�� r y..+� Yi Y�„ �S l ✓ � � vie vx. ew� � F=, o P E B o PE �eSt� ✓ ee c ell' Jl,(o w�e�- °��S �-�-�-��.. ✓e�K.c,v�.e wt,..,u.c� � tra � It � I�C..�� i � r � ru r...c wt.�.1.c.�s a ►.,�. ld s S s -{�1 � �- t j Permit No. 2215 — Geothermal Permit to Drill August 7, 2009 (k) The operator shall furnish the state paper and electronic digital copies in a format required by the state of all physical and factual exploration results, logs, surveys, and any other derivative data resulting from operations, including any surveys, logs, tests or experiments conducted by any person or entity acting on behalf of the operator. Any documents to be held confidential must have the word confidential placed on it. The standard time period for confidential information is 24 months. The length of time for retention of records as confidential may be extended upon approval by ADNR. (1) The operator shall also supply to the state all results, in paper and electronic digital form, for all geological, geophysical, engineering, and geochemical tests, experiments, reports and studies, interpretive or factual, including reservoir studies, profiles, computer modeling work and tests, experiments, reports or studies relating to injection, production testing, or reservoir depletion, irrespective of whether the results of such tests, experiments, reports or studies contain sensitive proprietary or confidential information or trade secrets. The operator shall also file a plat showing the exact location of each well. All of the aforementioned data and results shall be supplied to the state within thirty (30) days of completion of any recorded portion of the operation, test, experiment, report or study from which the data or results are obtained. (m) Any information filed by the operator with the state in connection with this permit to drill will be available at all times for the use of the state and its agents and contracting personnel. Mailing addresses for well and drilling information submittals for this permit are provided in this permit. 5 58N Alaskafle- u Areawide Sale' No shows �} Trace gas shows Gas shows �- Gas, trace oil shows Oil &gas shows sto Bre (P OD ICI 'at Basins`'2, rest Basins 1 LachropT 11 Lee T nraskaT Becharof 1 Fln�regan 7 Puale Bay ar Cr Unh T t } Ugashik, Grammer? aapunrt, Port Heid n `Unit I\ North Aleutian COST 1 `L , �•�► 56 N Sandy River fe eras 1 Port �'� - U • David P'.er-I oodo ake Cathedral River Un►' - , I a ' T Dodo -Lake. it 2 Port Moller Area . 'CS �w REPORTING REQUIREMENTS COMPARISON 0&NR AND AOGCC REGUATIONS FOR GE RMAL DRILLING REDUNDANCY OCCURS (Y) REPORTING FROM ADNR GEOTHERMAL REGULATIONS REPORTING FROM AOGCC REGULATIONS OR (N) 14. Records 11 AAC 87.110 (a) An operator of a well shall keep detailed and accurate drilling and well logs, core records, production and inspection records, and, if taken, appropriately bagged and identified samples of drill cuttings. (b) The logs for geothermal wells must show the litholo . characteristics and depth of formations encountered; the depths and temperatures of water -bearing and steam -bearing strata, any data obtained about the temperatures, chemical compositions and physical characteristics of fluids encountered; the amount, size, -, and weight of casing used; and the size, type, and density o perforated intervals. c) The temperature log must be obtained by either continuous temperature logging or by a comprehensive multiple point temperature survey. (d) The core record must show the depth and character of cores l!! obtained, as determined from the study and analysis of the core (e) The drilling log must describe in chronological order and on a daily basis all significant operations carried out and equipment used during all phases of drilling. The results of testing blowout prevention equipment must be recorded on the drilling log. A monthly report of drilling and workover operations which summarizes the daily record of well operation during the previous month must be filed with the department on or before the last day of each month. (1) Records listed in (a) - (e) of this section must he kept at the drill site or local office of the operator, available for inspection at reasonable times by the commissioner, and must be submitted to the department with the completion report required in 11 AAC 87.190. (g) Monthly statements required by 11 AAC 87.210, and records of the inspections conducted under 11 AAC 87.250, for the preceding calendar month, must be filed with the department b the last day of each calendar month NEA Rig 7 — Follow-up Rig Inspection and Initial BOPE Test — ql tj (07 Naknek G -I (Geothermal Well) Photos by AOGCC Inspector J. Crisp 8/27 — 8/30/2009 AOGCC Inspector John Crisp traveled to Naknek G -I well location (Naknek Electric Association) to perform follow-up rig inspection and initial BOPE test for NEA Rig 7. Rig inspection is photo -documented below and BOPE test is attached. Initial rig inspection was performed on 8-14-2009 (report in well file). Buffer tank and line; required removal of 300psi butterfly valve and replacement w/blind flange Bleed line through choke manifold NEA Rig 7 Follow-up Rig Inspection; Initial BOPE Test 0 0 Oil leaks from draw works Test plug for 21-1/4 inch stack Choke house and buffer tank; vent line exiting choke manifold NEA Rig 7 Follow-up Rig Inspection; Initial BOPE Test • A ! r • Vent line for gas buster Gas buster BOPE stack (21 -1/4 -inch) NEA Rig 7 Follow-up Rig Inspection; Initial BOPE Test 3 • Pipe handler Accumulator and Nitrogen backup bottles (4) Test joint installed and pump in-line NEA Rig 7 Follow-up Rig Inspection; Initial BOPE Test Test chart and pressure gauge for BOPE test Driller's Station; PVT and gas detector readout Gas audible alarms NEA Rig 7 Follow-up Rig Inspection; Initial BOPE Test • Regg, James B (DOA) From: Regg, James B (DOA) Sent: Tuesday, September 15, 2009 12:05 PM To: 'NICK SCALES'; dvuckich@nea.coop; dvuckich@me.com Cc: DOA AOGCC Prudhoe Bay; Aubert, Winton G (DOA) Subject: RE: NEA Rig 7 BOPE Test Witness Next BOPE test will be due 7 days from recommence of wellbore activities/drilling _-- Jim Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907-793-1236 From: NICK SCALES [mailto:njs@gci.net] Sent: Tuesday, September 15, 2009 10:06 AM To: Regg, James B (DOA); dvuckich@nea.coop; dvuckich@me.com Cc: Grimaldi, Louis R (DOA); Aubert, Winton G (DOA) Subject: Re: NEA Rig 7 BOPE Test Witness Jim, Page 1 of 2 We have had to suspend drilling operations due to major drawworks failure. The down time could be between 7-10 days. We have the bit and drill string up in the casing with 20' of open hole below casing. We are circulating the drill pipe every 12 hours. We are screwed into the drill string with the top drive and are monitoring the wellbore. Does the clock start for next BOP test when we start back to drilling? Thank you, Nick Scales NEA Rig 7 Off 907-246-3651 Cell 907-439-3722 ----- Original Message ----- From: "Regg, James B (DOA)" <jim.regg@alaska.gov> Date: Thursday, September 10, 2009 11:00 am Subject: NEA Rig 7 BOPE Test Witness To: njs@gci.net Cc: "Grimaldi, Louis R (DOA)" <lou.grimaldi@alaska.gov>, "Aubert, Winton G (DOA)" <winton. aubert@alaska. gov> 9/15/2009 0 0 Page 2 of 2 > Nick - Tried a couple different times today to reach you by phone > (celland rig land line) - no answer, no option to leave voice mail. > Thank you for the early notice of upcoming BOPE test provided > yesterday.AOGCC intends to witness the initial BOPE test (9/11) > prior to drilling > out of 16" casing. AOGCC Petroleum Inspector Lou Grimaldi will arrive > on the early morning flight and intends to stay to witness the > followingtests as outlined in the drilling permit: > BOPE - 3000 psi > 16" casing - 1000 psi > Planned LOT - 12.5 ppg > Please contact Lou Grimaldi at 907-252-3409 > Jim Regg > AOGCC > 333 W. 7th Avenue, Suite 100 > Anchorage, AK 99501 > 907-793-1236 9/15/2009 N NAKNEK_ELECTRIC ASSOCIATION, INC. ER 1 June 2009 Mr. Matt Rader Alaska Department of Natural Resources 5.50 W 7th Ave, Ste 800 Anchorage, AK 99501-3560 RE: Permit to Drill Geothermal Exploration Well — Naknek-G #1 Dear Mr. Rader: Naknek Electric Association, Inc. ("NEA") is pleased to submit the attached Permit to Drill application for geothermal exploration well Naknek-G # 1. This well will be drilled on a 120 -acre private allotment owned by NEA and situated approximately 5 miles east-northeast of King Salmon, Alaska. Drilling operations are scheduled to commence on or about l August 2009. A completed Coastal Project Questionnaire pertaining to this project was submitted to Christine Ballard at the Division of Coastal and Ocean Management on May 22, 2009. Attached to this letter, you will find a copy of the signed permit application, a check for associated permit processing fees, a Drilling Procedure document prepared by GeothermEx, Inc., maps showing the project and well location, and a Project Description that discusses the local geology, land status, and geothermal exploration methodologies associated with the proposed drilling program. All technical data relating to the well design, engineering and testing are contained within the Drilling Procedure document. Given the proprietary nature of the Drilling Procedure document, NFA requests that it be maintained as confidential. Per our telephone conversation on 28 May 2009, no bond number has been included on the permit application, as we understand that the Department of Natural Resources ("DNR") is still in the process of determining the appropriate bond amount for this type of geothermal exploration work. Once NEA receives the Blanket Bond amount from DNR, a bond will be secured and submitted to your office. As a contractor working on behalf of NEA, I am functioning in the capacity of Permitting Coordinator for the Naknek Geothermal Exploration Project. If you have any questions or require any additional information, please direct those inquiries to me as follows: Corri Feige The Castle Mountain Group, Inc. PO Box 1208 19900 E. Chickaloon Rd. Chickaloon, AK 99674 (907) 282-1192 (tel) (907) 745-7864 (fax) Alternatively, you may contact Ms. Donna Vukich, General Manager of NEA, in her Naknek office at (907) 246-4261. This is a very exciting project and NEA looks forward to working with the State of Alaska as we endeavor to discover and develop a new, renewable, source of energy for the Bristol Bay region. Sincerely, Xkc-' Corri A. Feige 1 (for) Naknek Electric Association, Inc. Cc: Christine Ballard, ADNR Division of Coastal and Ocean Management Print For Submit by Email Sep -91 STATE OF ALASKA DEPARTMENT OF NATURAL R33SOURCES PERMIT TO DRILL A GEOTHERMAL WELL 11 AAC 87.030 and 11AAC 87.070 la. Type of work: Drill xx 1b. Type of wait: Exploratory xx Veit name and number: Deepen Redrilt 12. Production Naknek-G #1 Naknek Electric Association, Inc. 3. Name of operator; PO Box 118 Naknek, AK 99633 Address: Naknek Electric Association, Inc (landowner) N/A 4a. Landowner or lessor: 4b. Lessee: Address: PO Box 118 Naknek, AK 99633 Address: 5a. Lease number: N/A 5b. Legal description of parcel and well location: T17S, R44W, Seward Meridian; Sec 14, E1/25W1;4 & Sec 23, NE1/4NW1/4 58.69902N 156.50394W 14,000ft max (vertical well) 16b.at ba. Location of well at surface: total the 7. Proposed bottom -hole location at top of proposed producing interval: 8 000ft to 10,000ft below ground level (vertical well) 8. Elevation of ground in feet (relative to sea level): 275feet August 1, 2009 9. Proposed spud date: 10. Bora! information - Blanket Pending ADNR To Be Determined by ADNR (see 11 AAC 87.080) 7 Number: Amount: 5 miles NE of King Salmon, AK 11. Distance and direction from nearest town: 602 feet to eastern property boundary 12. Distance to nearest property or lease tine: Approximately 60 miles to Great Basins#1 13. Distance to nearest or cmpteted watt: 14. If a deviated welt (see 11 AAC 87.150) - kick-off point ;Max. hole angle 15. Anticipated pressures in psig - at surface ±1'50 psig at 14,000 ft TD (TVD) 5,000 psig See Table 2 and Figure 2 in attached Drilling Procedure. 16. Proposed Casing Liner, and Cementing Program (11 AAC 87.120) SIZE CASING AND LINER SETTING DEPTH QUANTITY OF CEMENT Hole Casing weight Grade Coupling Length MD TOP TVD MD BTM TVD (include stage data) 26" © 22' 106.5 K-5utt. R-3 0 Q 700' 70 977 SKS 16" 84 - utt. R-3 0 0 3,000' 7,000 2,667 SKS 14.75" 11.75" 60 N-80 utt.-7-7-2,700' 2,700' 8,000' 1 28 SKS 10.625" Butt. K-3 7,700 10,000' 10,000 17. Describe proposed drilling program: Drill new, full diameter well to confirm & evaluate commercial production potential of geothermal resource (fluids or hot dry rock) at depths ranging from 10,000ft to 14,000ft. See full program description in attached Drilling Procedure and Project Overview. 18. Describe proposed fresh water aquifer protection program: All casings will be cemented to surface. In case of hung casing strings, they will be cemented throughout the liner lap. Fresh water aquifers shall be completely isolated from contacting any geothermal or drilling fluids. 19. Describe program to ensure pressure control and blowout prevention (11AAC 87.130): See Figures 5 through 8 in attached Drilling Procedure for complete description. 20. 1 hereby ccer(ttiify�th t the foregoing is true and correct to the best ofknowledge: � Date 4- signedTitl4�At 5FALt UtLUW MN UNK UJt UMLT samples required; yea no Mud log required; yes no Directional survey required: yes_ no API Number Aproval Date Permit Number Approved by Title Date TELEPHONE: (510) 527-9876 FAX: (510)527-8164 E-MAIL: mw@geothermex.com 3260 BLUME DRIVE, SUITE 220 Geothe rm Ex, Inc. RICHMOND, CALIFORNIA 94806 - USA NAKNEK GEOTHERMAL PROJECT DRILLING PROCEDURE for Alaska Earth Sciences Anchorage, Alaska by GeothermEx, Inc. Richmond, California, USA MAY, 2009 [CONFIDENTIAL] TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermeX.com C+ 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 -USA Naknek Geothermal Project Drilling Program for Deep Production Well 1.0 Well Name: Naknek - 1 2.0 Site: Naknek, Alaska 3.0 Lease Locations: Section 14, Tl7S, R44W, Seward Meridian 4.0 Target Depth: 14,000 feet (maximum measured depth). Note: All depths quoted in this program are referred to ground level. 5.0 Objective: Drill a new full -diameter well, to confirm and evaluate commercial production of geothermal fluids. 6.0 Well Summary The first deep exploratory well to be drilled at the Naknek Geothermal Project in Alaska will be a vertical well located on property owned by Naknek Electric Association (NEA). The well site lies on uplands approximately 5 miles northwest of the King Salmon Airport (Figure 1). The target site is within two miles of a borough -maintained gravel road, and will have road access developed by NEA. The site is on Pikes Ridge, a terminal moraine characterized by its elevated prominence above the King Salmon Creek flats, and is covered by a patchwork of open tundra, wet hummocks, alder and mixed birch and spruce woods. The presence of a geothermal resource i in the area has not yet been confirmed by drilling; therefore, the well will be designed to investigate conditions at various depth intervals. No nearby wells have been drilled within the project area, but the lithological sequence is expected to be +/-600 feet of glacial till and moraine on top of at least 5,000 feet of Eocene to Oligocene age (48 to 28 million year old) Meshik CONFIDENTIAL E • 3260 BLUME DRIVE, SUITE 220 GeothermEx, In RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510)527-8164 E-MAIL: mw@geothermex.com Volcanics. The latter consists of andesitic to basaltic lava, breccias, tuff, and lahars, possibly intercalated with sandstone, shale, and mudstone of the Stepovak Formation. The underlying granitic crystalline basement rocks are probably Jurassic in age (144 to 206 million years old). The target area is cut by sections of the Lake Clark Fault system, a wide, steeply dipping extensional feature with recent offset that may provide a conduit for more recent igneous intrusions and/or hydrothermal activity. Temperature gradients from regional oil and gas wells on the Alaska Peninsula, at distances of 60 to 100 miles from the target site, range from 1.7 to 2.3°F/100 feet. The present casing design calls for the well to be drilled in several stages of different diameters, so that the maximum open -hole interval will not exceed 5,000 feet at any stage of drilling (Figure 2). This design will allow the well to be drilled faster and more safely in the presence of severe losses of circulation or unstable formations, yet the upper portion of the hole will still be completed with a large enough casing diameter to minimize pressure losses due to friction during production. The larger -diameter completion in the upper portion of the well will allow also a large shaft -driven pump to be installed, in the event that it is desirable to produce the well by pumping. Below the 30 -inch conductor pipe, which will be anchored at 100 feet, the well will have a 22 - inch surface casing cemented at a nominal depth of 700 feet. Next, a 16 -inch casing will be cemented at a nominal maximum depth of 3,000 feet. For the purposes of a pump installation, it is very important to guarantee that the well will be drilled vertical -within a close tolerance- in the upper 3,000 feet, therefore, an MWD steering technique will be utilized for drilling this section of the well within the intended vertical parameters. However, below 3,000 feet, the well should stay within the permitted property boundaries, therefore, if the drilled formations are prone to create severe doglegs or high deviation angles, the use of the steering system should be continued. 2 CONFIDENTIAL 3260 BLUME DRIVE, SUITE 220 Geotherm Ex, Inc. RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermeX.com Inside the 16 -inch casing, an 11 -3/4 -inch casing will be hung and cemented from approximately 2,700 to 8,000 feet. If conditions allow drilling further without installing an additional, smaller - diameter casing, the location of the 11 -3/4 -inch casing shoe could be as deep as 10,000 feet. However, it is more likely that the formations to be drilled will not be stable enough to allow for drilling through a long interval of unprotected hole. Therefore, a fourth string of casing (of 8- 5/8 -inches diameter) has been programmed to be hung and cemented inside the 11 -3/4 -inch casing between 7,700 and 10,000 feet. The production interval of the well below 10,000 feet will then be drilled with a 7 -1/2 -inch bit. It will be drilled to a depth sufficient to evaluate the reservoir conditions and intersect a sufficiently long interval of permeable formation. It is not anticipated that the total well depth will exceed 14,000 feet./The production interval will be lined with a 6 -5/8 -inch slotted liner hung from 9,800 feet to TD. At time of well completion, the operator will have the option of installing and cementing a 13 -3/8 -inch tie -back liner from 2,700 feet back to the surface, if there is evidence that the 16 -inch casing may be damaged. If no damages are detected, the upper part of the well will be left with a 16 -inch casing completion to accommodate the line -shaft pump. Keeping the well vertical in this interval will be important to facilitate the proper installation of the pump. Based on experience obtained from drilling wells in similar environments and to comparable depths, it is anticipated that it will take approximately 97 days to complete the well (Figure 3), without considering any contingencies such as time spent in fishing operations or curing losses of circulation. Table 1 shows the recommended specifications for the drilling equipment that should be contracted to drill the well. Table 2 shows the summary of minimum casing specifications. The purpose of this well is to confirm and evaluate commercial production of geothermal fluids by conventional means (i.e., by self -flow or pumping without any special stimulation or 3 CONFIDENTIAL 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com treatment of the rock formations drilled). However, taking into account that the permeability of the deep production interval may not be sufficient for commercial production, a decision may be made in advance of drilling to undertake certain procedures and conduct open -hole logs that would facilitate the later application oEG�Enhanced Geothermal System) hydraulic stimulation techniques to improve productivity. Appendix C describes the additional steps for EGS data collection at different points in the drilling process, if the EGS option is to be pursued. These EGS procedures will involve certain open -hole logs, obtaining rock cores, and conducting operations to measure formation minimum fracture gradient, similar to the standard leak -off testing procedures. Drilling Procedure 7.1 Prepare drilling pad (Figure 4) and access road. Install 30 -inch conductor pipe at an approximate depth of 100 feet using a pile driver. Modify cellar and mud sump as per specifications from the drilling Contractor. 7.2 Mobilize drilling equipment to the well site and rig up. Nipple up 26 -inch flow nipple (Figure 5). 7.3 Make up 26 -inch bit to drilling assembly. Do not install nozzles on bit. 7.4 Start drilling with low -viscosity spud mud (see Appendix A), adding lime as needed to reach the viscosity required for keeping the hole clean. 7.5 Install an MWD -mud motor steerable system (similar to Baker Hughes Inteq's Verti- Trak system) to maintain the verticality of the well within a maximum dog -leg severity (DLS) of 1.0 degree per 100 feet and a maximum vertical angle at 3,000 feet of 3 degrees. 7.6 Cure losses of circulation, as they occur, with lost -circulation material (LCM). Place cement plugs where LCM is not sufficient to cure the loss zones. 4 [CONFIDENTIAL] 3260 BLUME DRIVE, SUITE 220 Geotherm Ex, In RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com 7.7 Drill 26 -inch hole to 700 feet (approximately). Run 700 feet of 22 -inch, 106.5 lb/ft, K-55, Buttress threaded surface casing (Table 2). Cement casing with Class A cement and additives (accelerant, dispersant) as specified by cementing contractor, using stab -in float collar. Follow instructions from cementing contractor for pumping the cement volumes as specified in Figure 9. Wait on cement for 12 hours. If full returns are not observed during the cementing operation, prepare wellhead equipment to conduct top cementing job. Fill the annulus with cement and wait 8 hours before cutting off the 22 -inch casing at the desired level. 7.8 Install temporary 21 -1/4 -inch casing head flange. Pre -heat and post -heat welding area. Weld the casing head flange according to the API recommended procedure. 7.9 Nipple up the 21-1/4-inch,M, BOP equipment as shown in Figure 6. Pressure -test the BOP equipment with mud to 800 psi..Test pressure integrity of the surface casing with mud to 400 psi before drilling off the casing shoe. 7.10 Make up 20 -inch drilling assembly, installing 1/2 -inch nozzles on bit or adjust nozzle size according to the hydraulics program. Drill the 20 -inch hole using a dispersed mud system, as recommended in Appendix A of this program. Cure losses of circulation as they occur with LCM. Place cement plugs where LCM is not sufficient to cure the loss zones. 7.11 Drill to 3,000 feet, maintaining hole deviation angle at less than 3 degrees (maximum permissible dogleg angle should not exceed 1 degree per 100 feet). Use steerable system to maintain verticality within the specified tolerance. Adjust the hydraulic parameters according to the conditions observed while drilling, in order to maintain the well's verticality. Anticipate that at TD (14,000 feet), the well should stay within the boundaries of the concession area, therefore, if formations in the area are prone to CONFIDENTIAL 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@g@Oth@rmex.com produce severe dog legs or high deviation in specific directions, continue the use of the Verti-Track or similar system to keep hole vertical below 3,000 feet. 7.12 The depth of the 16 -inch casing will be determined by the drilling supervisor, drilling engineer and wellsite geologist based on the conditions encountered. Run 16 -inch, 84 lb/ft, N-80, BTC, R-3 casing (Table 2). Cement casing with Class G or Class H cement, 30-40% silica flour and additives (retarder, dispersant, defoamer, friction reducer) as specified by cementing contractor. Follow instructions from cementing contractor for pumping the cement volumes specified in Figure 10. Wait on cement for 12-24 hours. 7.13 Depending on the final depth of the 16 -inch casing and the presence of weak zones inside the 20 -inch hole, the cementing operation may have to be made in two stages. 7.14 Install 16 -3/4 -inch, 3M, SOW permanent casing head. Pre -heat and post -heat welding area. Weld the casing head according to the API recommended procedure shown in Appendix B. 7.15 Re -install the 21 -1/4 -inch, 2M, BOP equipment as shown in Figure 7. Pressure -test the BOP equipment with mud to 1,000 psi. Pressure test casing integrity to 1,000 psi. 7.16 Make up 14 -3/4 -inch drilling assembly, installing nozzles on bit as per hydraulic requirements specified by mud engineer. Start drilling the 14 -3/4 -inch hole using a dispersed mud system, as described in Appendix A of this program. Zones of lost circulation that are encountered in this interval must be plugged, as directed by the drilling engineer or wellsite geologist. 7.17 Drill 14 -3/4 -inch hole to 8,000 feet. If formations remain firm and maintenance of hole stability is not a problem, continue drilling ahead with this diameter up to a maximum depth of 10,000 feet. Otherwise, hang and cement 11 -3/4 -inch, 60 lb/ft, N- [ CONFIDENTIAL 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510)527-8164 E-MAIL: mw@geothermex.com 80, BTC casing from 2,700 to 8,000 feet as per the instructions from the cementing contractor and using the approximate volumes specified in Figure 11. A two-stage cementing job may be necessary in this interval, depending on casing setting depth and rock condition. 7.18 Allow cement to set for 24 hours. Test liner lap seal to 500 psi using mud before drilling off the 11 -3/4 -inch casing shoe. If needed, squeeze cement to seal off liner lap until it tests satisfactorily. 7.19 Install permanent 16 -3/4 -inch, 3M x 12 -inch, 2M expansion spool assembly and 12 - inch, 2M master valve. Install the 13 -5/8 -inch, 3M, BOP assembly as shown in Figure 8, which will be the BOP equipment to be used for the rest of the drilling operations. Pressure -test the BOP equipment with mud to 1,000 psi. 7.20 Continue drilling 10 -5/8 -inch hole to a maximum depth of 10,000 feet using a dispersed mud system mud as described in Appendix A. 7.21 Run open -hole logs (sonic, gamma, density) as specified in Appendix C, for the EGS option. 7.22 Hang and cement 8 -5/8 -inch, 40 lb/ft, N-80, BTC casing from 7,700 to 10,000 feet as per the instructions from the cementing contractor and using the approximate volumes specified in Figure 12. 7.23 Allow cement to set for 12-24 hours. Test liner lap to 500 psi with mud before drilling off the 8 -5/8 -inch casing shoe. If needed, squeeze cement to seal off liner lap until it tests satisfactorily. 7.24 Drill off 8 -5/8 -inch casing shoe and drill formation 50 feet below shoe. Conduct mini -frac test (extended leak -off test). Cut 10 -foot formation core. Refer to 7 CONFIDENTIAL 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com Appendix C for EGS-related procedures (coring and extended leak -off testing) to be followed at this point of the program for the option of EGS investigations. 7.25 Drill below 10,000 feet with a 7 -1/2 -inch bit using a dispersed mud system, as described in Appendix A of this program. 7.26 In this interval, after the first major zone of circulation loss that is determined to be within the reservoir is encountered, discontinue the use of mud as drilling fluid and continue drilling with plain water. Pump high -viscosity mud sweeps at every connection if hole is not cleaning properly and fill is noticed on the bottom after connections. Follow the parameters for preparing viscous mud pills as described in Appendix A of this program. 7.27 Drill to total depth, adjusting the bottomhole assembly and the fluid parameters to the conditions observed while drilling. The total depth of the well will be selected based on the resource and drilling conditions encountered. The nominal maximum total depth will be 14,000 feet. Test permeable zones as directed by the well test engineer. 7.28 Run open -hole logs and collect core from TD, as specified in Appendix C, for the EGS option. 7.29 At TD, evaluate the need for installing the 13 -3/8 -inch tie -back casing to surface. If the installation of the tie -back casing is deemed necessary, run a drillable composite material bridge plug or inflatable packer inside the 11 -3/4 -inch casing to a depth below the liner hanger and cement 13 -3/8 -inch tie -back casing to surface. Follow the approximate volumes specified in Figure 13. After the 13 -3/8 -inch casing tie -back is cemented to surface, test casing integrity to 500 psi. Drill off bridge plug or remove inflatable tool. 7.30 Run 7 -1/2 -inch bit to TD to ensure that the well is open and unobstructed to TD. CONFIDENTIAL • 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@g20thermex.com 7.31 If the formation is not stable, install 6 -5/8 -inch, N-80, 24 lb/ft, Flush -Joint -thread connections (Hydril, Atlas Bradford or similar), R-3 slotted liner (Figure 14) to total depth, hanging it approximately 100 feet above the shoe of the production 8 -5/8 -inch casing and 20 feet above bottom. 7.32 Pull out of hole, laying down drill pipe. 7.33 Install the rest of the permanent wellhead equipment as shown in Figure 15. 7.34 Rig down and demobilize drilling equipment. Clean up site. 8. Drilling Fluids and Corrosion Control The mud program presented in Appendix A is to be used as a guideline only. Actual well conditions encountered during drilling will dictate the final type and rheological properties of the drilling fluid. Mud drilling will be utilized until the first important loss of circulation occurs in the production interval (7 -1/2 -inch hole). Depending on the drilling conditions to be encountered, drilling may proceed using plain water below that point, pumping high viscosity mud sweeps at every connection, or a combination of water, foam and air, or water and mud. The following rheological conditions should be maintained while using a dispersed mud system: 8.1 Dispersed Mud Weight S.G. 1.05 - 1.07 4 (� pH 9.5- 10.5 Marsh viscosity 35 - 38 seconds Plastic viscosity 10 - 15 cp Yield point 3 - 10 lbs/100 sq. ft. 10 min Gel 10 lbs/100 sq. ft. Water loss 5 - 7 cc/30 min. Wall cake 0.5 - 1.0 mm (1/32") 0 CONFIDENTIAL TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 -USA Sand content 0.25% max. (control with desander/desilter) Chrome -free ligno-sulfonate / lignite products are to be used to condition and thin the mud. 8.2 Corrosion Control Once circulation has been established and stabilized, the circulating fluid must be maintained at a pH of approximately 10. The returns will be tested on a regular basis and the pH will be recorded on the Daily Record Sheet. If the reservoir fluids give indications of high corrosion rates in the presence of air, use amine inhibitor to mitigate the problem. 8.3 Casing Design Criteria Each of the four casing strings to be cemented (22 -inch, 16 -inch, 11 -3/4 -inch and 8 -5/8 -inch) was designed utilizing standard methodology used in the industry. The parameters used for the casing design and strengths were as follows: Casing Burst Collapse Tension (psi) (psi) (1000 lb) 22 -inch, K-55, 3,500 770 2,281 106.5 lb/ft, welded 16 -inch, N-80, 4,330 1,480 1,898 84 lb/ft, BTC 11 -3/4 -inch, N-80, 5,830 3,180 5t4 60 lb/ft, BTC 8 -5/8 -inch, N-80, 7,300 5,520 .992 9 t5 40 lb/ft, BTC For stress calculations, the following criteria was used: IN CONFIDENTIAL 10 • GeothermEx, Inc. 3260 BLUME DRIVE, SUITE 220 RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com Burst Pressure: • Inside of casing: full of 15.5 lb/gal cement • Outside of casing: empty, no mud or water (most critical condition) • Minimum Acceptable Safety Factor: 1.0 Collapse Pressure: • Inside of casing: 9.0 lb/gal drilling mud • Outside of Casing: full of 15.5 lb/gal cement (most critical condition) • Minimum Acceptable Safety Factor: 1.125 Axial Tension: • Inside of casing: 15.5 lb/gal cement • Outside of casing: empty, no buoyancy • Minimum Acceptable Safety factor: 1.8 11 CONFIDENTIAL TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com 3260 BLUME DRIVE, SUITE 220 Geotherm Ex, Inc. RICHMOND, CALIFORNIA 94806 - USA TABLES CONFIDENTIAL Table 1. Summary of Recommended Drilling Contractor's Equipment Rotary Table Draworks Derrick Substructure Pumps Depth Rated Make & Model Capacity (ton) Make & Model Capacity Triplex Rating Rating Single -Line (ton) Capacity Load Setback Power (ft) (HP) Capacity (lbs) Height (ft) (Gross Height (ft) Capacity Capacity Make &Model Rating (HP) Oilwell RT -275 500 (1-3/8") McKissick HydraHook nominal - lbs) (lbs) (lbs) (3 pumps) 17,000 2,000 75,000 142 1,000,000 27 1,000,000 600,000 C-Emsco FB 1300 1,300 Rotary Table Travelling Block / Hook Blowout Prevention Equipment Opening Rated Make & Model Capacity (ton) Make & Model Capacity (inches) (ton) Annular 1: Hvdril GK 21-1/4" (2M) Annular 3: Hvdril GK 13-5/8" (3M) Double Rams 1: Cameron 21-1/4" (2M) Oilwell RT -275 500 27.5 McKissick HydraHook 400 Double Rams 2: Cameron 13-5/8„ (3M) (12 lines) Rotating Head 1: Grant 21-1/4” (2M) Rotating Head 2: Grant 13-5/8" (3M) GeothermEx, Inc. 2009 • is CONFIDENTIAL TABLE 2. MINIMUM RECOMMENDED CASING SPECIFICATIONS DESCRIPTION APPROXIMATE DEPTH APPROXIMATE LEFT) H OUTSIDE WEIGHT NOMINAL DRIFT LD. THREAD (FT) DIAMETER LBS/FT I.D. (INCHES (INCHES) GRADE TYPE RANGE Conductor Pipe 100 100 30 -inch 28 N/A Black Iron Welded - Surface Pipe 700 700 22 -inch 106.5 21 N/A K-55 Butress 3 Intermediate Casing (I) 3,000 3,000 16 -inch 84 15.01 14.822 N-80 Buttress 3 Intermediate Casing (II) 2,700 - 8000 (max) 5,300 I1 -3/4 -inch(" 60 10.772 10.616 N-80 Buttress 3 Intermediate Casing (III) 7,700 - 10,000 (max) 2,300 8 -5/8 -inch 40 7.725 7.6 N-80 Buttress 3 External Slotted & Blank Liner 14) 9,800 - 14,000 (max) 4,200 6 -5/8 -inch 24 5.921 5.796 L-80 or N-80 Flush Joint(2) 3 External Casing Tie -Back 2,700 - Surface 2,700 13 -3/8 -inch (Z) (3) 72 1 12.347 1 12.191 1 N-80 Flush Joint (2) 3 (')Casing must be drifted to ID = 10-5/8" (`)Hydril, Atlas Bradford, or equivalent (;Option, will not be installed if not required Geothermex, Ine. 2009 (4)Six blank joints required CONFIDENTIAL TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com Inc9 0 3260 BLUME DRIVE, SUITE 220 Geotherm Ex, v . RICHMOND, CALIFORNIA 94806 - USA FIGURES CONFIDENTIAL 0 0 0 0 to fD 0 0 0 N o N to 635000 640000 645000 635000 640000 645000 0 0 0 0 N co 0 0 0 0 0 0 m 0 0 0 0 0 Ln N A 0 0.3 0.6 1.2 Miles Location Map: Naknek Geothermal Project Figure: 1 CONFIDENTIAL Figure 2 Naknek Geothermal Project - Confirmation Well Design 12-3/8" (Nominal), 2M Master Valve 16-3/4", 3M x 12-3/8", 2M Expansion Spool 16" SOW x 16-3/4", 3M casing head 30 -inch conductor pipe cemented inside 42 -inch hole @ 100 ft 22 -inch, 106.5 #/ft, surface casing cemented inside 26 -inch hole @ 600-700 ft 13 -3/8 -inch, 72 9/ft, (contingent) tie -back liner cemented inside 16 -inch casing from the top of the 11 -3/4 -inch casing to surface (installed at the end of drilling) 16 -inch, 84 #/ft, casing cemented to surface inside a 20 -inch hole @ 2,000-3,000 ft 11 -3/4 -inch, 60 #/ft, casing hung inside the 16 -inch casing with a 300 ft liner lap and cemented inside 14 -3/4 -inch hole to 5,000 - 8,000 ft 8 -5/8 -inch, 40 4/ft, casing hung inside the 11 -3/4 -inch casing with a 300 ft lap and cern inside 10 -5/8 -inch hole to 8,000 to 10,000 ft 6 -5/8 -inch, 24 #/ft, combination of slotted and blank liner (optional), hung inside the 8 -5/8 -inch casing with a 100 ft lap to TD 7 -1/2 -inch Open Hole drilled to 14,000 ft CONFIDENTIAL GeothermEx, Inc. May, 2009 0 2000 4000 6000 10000 12000 14000 5-7 • Figure 3 NAKNEK GEOTHERMAL PROJECT DRILLING DAYS VS DEPTH CURVE 8 1 9-10 r. • 12-14 1 16-21 1 0 20 40 60 80 100 120 Days from Spud CONFIDENTIAL 2009, GeotnermEx, Inc. PLANNED ACTIVITY DAYS 1. Spud. Drill 26 -inch hole to 700 feet 7 2. Set & cement 22 -inch casing 2 3. Nipple up 21 -1/4 -inch BOPs 1 4. Drill 20 -inch hole to 3,000 feet 12 5. Set & cement 16 -inch casing 2 6. Weld on permanent casing head 1 7. Nipple back 21 -3/4 -inch BOPs 0.5 8. Drill 14 -3/4 -inch hole to 8,000 feet 25 9. Set & cement 11 -3/4 -inch casing 2 10. Nipple up 13 -5/8 -inch BOPS 1 11. Drill 10 -5/8 -inch hole to 10,000 feet 10 12. Run open -hole logs 0.5 13. Set & cement 8 -5/8 -inch casing 2 14. Collect core; extended leak -off test 4 15. Drill 7 -1/2 -inch hole to 14,000 feet 18 16. Run open -hole logs 1 17. Collect core from TD 2 18. Set 6 -5/8 -inch slotted and blank liner 1 19. Install and cement 13 -3/8 -inch tie -back 2 20. Run temperature/pressure logs 1 21. Conduct rig test 2 TOTAL 97.0 12-14 1 16-21 1 0 20 40 60 80 100 120 Days from Spud CONFIDENTIAL 2009, GeotnermEx, Inc. FIGURE 4 - WELL PAD LAYOUT PCUM PIT CONOITIONMO TANK r -e• x eo•-r y� PUMP N 1 SAND TRAP 7.." Y/ATCP TANK Tyr x ar-r Ioa• 1 i Pp SUPT, TKAK•CP pr PIG SUPT. Orrx:C a CPCw C. KOuse e•%2T e•xaw CNOKC MANIFOLO OPLO LMC STANO PIPCWALK • 7•-rIt - :J� MIMIMUM LOCATION AREA: 1'50 FT WIDE X 200 FT LONG • • CONFIDENTIAL 0 • Figure 5 Naknek Geothermal Project EQUIPMENT FOR DRILLING BELOW 30 -INCH CONDUCTOR Kill Line CONFIDENTIAL p Line GeothermEx, Inc. 2009 • Figure 6 Naknek Geothermal Project Blowout Prevention Equipment for Drilling Below 22 -inch Casing GeothermEx, Inc. CONFIDENTIAL 2009 Figure 7 Naknek Geothermal Project BLOW OUT PREVENTION EQUIPMENT FOR DRILLING BELOW 16 -INCH INTERMEDIATE CASING _ GeothertnEx, Inc. CONFIDENTIAL J 2009 Figure 8 Naknek Geothermal Project BLOW OUT PREVENTION EQUIPMENT FOR MUD DRILLING BELOW 11 -3/4 -INCH INTERMEDIATE CASING 13-5/8' 12" (Nomin Master V 16-3/4", 3 x 12", 2M exp; spool 13-3/8", 72 #/ft N-80, Csg. Flush Joint Connection 16-3/4" SOW 3M casing hea< CONFIDENTIAL ,2M Trim Side es ", 5M Trim Side ✓es GeothennEx, Inc. 2009 Figure 9. Cementing Calculations for 22 -inch Surface Casing Casing Details : Slurry Water (bbl) (gal) Tack -weld bottom three joints. Run centralizers above shoe and float collar, Lead Cement 143.39 6,022.42 one on the next joint and then one every third joint up to 100 feet Tail Cement 52.48 2,204.11 Total Water 195.87 8,226.54 Cement Details : Pump 200 cu. ft ofwater ahead, followed by 100 cu. ft ofpre-flush. Do not reciprocate casing while cementing. Do not exceed 1,000 psi while cementing or displacing. Pressure -test all lines to 1,500 psi before starting cement operation Use Class "A" cement with friction reducer, defoamer an fluid loss control additives as recommended by cementing operator. Pressure -test casing for integrity to 400 psi before drilling offthe shoe GeothermEx, Inc. 2009 CONFIDENTIAL Figure 10. Cementing Calculations for 16 -inch Intermediate Casing Casing Details: Tack -weld bottom three joints. Run centralizers above shoe and float collar, one joint above float collar and one every third joint to 100 feet Cement Details : Pump 200 cu. ft of water ahead, followed by 100 cu. ft of pre -flush Do not reciprocate casing while cementing. Do not exceed 1,500 psi while cementing or displacing. Pressure -test all lines to 2,000 psi before starting cement operation. Use Class "G" cement, pre -hydrated gel, silica flow, cement retarder, &fiction reducer and defoamer as recommended by cementing operator. Pressure -test casing for integrity to 1,000 psi before drilling offthe shoe CONFIDENTIAL Cement Worksheet Initial Parameters Calculated Lead Slurry in Open Hole Feet of Tail Cement Calculated Lead Slurry Bet. Csngs. % Excess Lead Cement in Open Hole 0 % Excess Lead Cement in Cased Hole 100 % Excess Tail Cement in Open Hole 0.09972 Drill Pipe Capacity (ft3/ft) 1.22882 Casing Capacity (ft3/ft) 1.009 Volume Between Casings (ft3/ft) 0.7854 Volume Bet.Csg & Open Hole (ft3/ft) 2.58 Lead Cement Yield (ft3/sk) 1.63 Tail Cement Yield (ft3/sk) 11.3 Lead Water gal/sk 6.8 Tail Water gal/sk 12.5 Lead Cement Weight (lbs/gal) 15.5 Tail Cement Weight (lbs/gal) Calculated Lead Slurry in Open Hole 1,806.42 Calculated Lead Slurry Bet. Csngs. 706.30 Excess Lead Slurry in Open Hole 1,806.42 Excess Lead Slurry in Cased Hole 0.00 Total Cement 113.99 Slurry Water (bbl) (gal) Lead Cement 1 450.41 18,917.16 Tail Cement 160.91 6,758.09 Total Water 611.32 25,675.25 GeotherntEx, Inc. 2009 16" x 11-3/4' Figure 11. Cementing Calculations for 11 -3/4 -inch Casing Casing Details: Slurry Water (bbl) (gal) Tack -weld the bottom three joints. Run centralizers on shoe and Lead Cement 353.19 14,834.14 float, then every third joint Tail Cement 34.99 1,469.52 Cement Details: Total water 388.18 16,303.66 Pump 6 cu. m of water ahead, followed by 3 cu. m of cement pre -flush Do not reciprocate casing while cementing. Do not exceed 1500 psi while cementing or displacing. Pressure -test all the lines to 1,500 psi before starting cement operations. Use cement retarder, friction reducer, defoamer and fluid loss control additives as recommended by cementing operator. Pressure -test liner lap to 500 psi for integrity before drilling offthe shoe GeothermEx, Inc. 2009 CONFIDENTIAL 11-3/4" x 8-5/t at 11-3/4" Csg. Figure 12. Cementing Calculations for 8 -5/8 -inch Casing Casing Details : Slurry Water (bbl) (gal) Tack -weld the bottom three joints. Run centralizers above shoe and Lead Cement 72.70 3,053.56 float collar, then every third joint Tail Cement 17.08 717.17 Cement Details: Total water 89.78 3,770.74 Pump 6 cu. m of water ahead, followed by 3 cu. m of cement pre -flush Do not reciprocate casing while cementing. Do not exceed 1500 psi while cementing or displacing. Pressure -test all the lines to 1,500 psi before starting cement operations. Use cement retarder, friction reducer, defoamer and fluid loss control additives as recommended by cementing operator. Pressure -test casing to 500 psi for integrity before drilling offthe shoe CONFIDENTIAL GeothermEx, Inc. 2009 � 16" x 11-3/4' at Figure 13. Cementing Calculations for 13 -3/8 -inch Tie -Back Casing Casing Details : SlurryWater (bbl) (gal) Tack -weld the bottom three joints. Run centralizers on bottom Lead Cement 74.67 1 3,136.20 and on every third joint Tail Cement 3.30 138.75 Cement Details: Total Water 77.98 3,274.95 Pump 6 cu. m of water ahead, followed by 3 cu. m of cement pre -flush Do not reciprocate casing while cementing. Do not exceed 1500 psi while cementing or displacing. Pressure -test all the lines to 1,500 psi before starting cement operations. Use cement retarder, friction reducer, defoamer and fluid loss control additives as recommended by cementing operator. Pressure -test lap to 500 psi before drilling drilling off plugs GeotherntEr, lne. 2009 CONFIDENTIAL • Figure 14. Recommended Slot Pattern for 6 -5/8 -inch Liner C C °'o (L) U N C � c� cD o m N U -6 L C U N C � (6 O M -0 GeothermEx, Inc. 2009 9 Slotting pattern is: Cut 4 slots (-1/4" x ]2-1/2") per row, 4 rows per foot, 16 slots foot. Total open area is 10 sq. inches p foot CONFIDENTIAL 12" (Komi Master I 12" (Allthr Flo, 12" (Nomin Master V 16-3/4", 3_ x 12", 2N Expansion S1 13-3/8", 72 #/ft N-80, Csg. Wil Flush Connections 16" SOW x 16-3/4", 3N casing head Figure 15 Naknek Geothermal Project Wellhead Configuration 3M rim Side ", 5M Trim Side ✓es CONFIDENTIAL 2009 Inc. 2009 TELEPHONE (510) 527-9876 FAX: (510)527-8164 E-MAIL: mw@geothermex.com 5221 CENTRAL AVENUE, SUITE 201 GeothermEx, Inc. RICHMOND, CALIFORNIA 94804-5829 APPENDIX A MUD PROGRAM CONFIDENTIAL C • �+ 3260 BLUME DRIVE, SUITE 220 eotherm Ex, Inc. RICHMOND, CALIFORNIA 94806 USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com APPENDIX A RECOMMENDED MUD PROGRAM FOR DRILLING PRODUCTION WELLS AT THE NAKNEK GEOTHERMAL PROJECT 26 and 20 -inch Phases (Surfiwe to +3 00 lft) MUD TYPE: GEL SPUD IN RECOMMENDED CHEMICAL CONCENTRATION: BENTONITE: 28 LB/BBL CAUSTIC SODA: 0.2 LB/BBL LIME: 0.2 LB/BBL (TO INCREASE IF NECESSARY YIELD OF CLAY) (This concentration may vary depending on shaker flow capacity) RECOMMENDED MUD PROPERTIES: MUD WEIGHT: 1.04/1.15 S.G. VISCOSITY: 60/70 SEC PH: 8.5/9 CA++: <200 PPM 14 -3/4 -inch and 10 -518 -inch Phases (f3 t)t) l ft to f1(1 000ft) MUD TYPE: LOII' SOLID-BENTONITE-POLI'PIER Sl STEn1 RECOMMENDED CHEMICAL CONCENTRATION BENTONITE: 18 LB/BBL CAUSTIC SODA: 0.3-0.7 LB/BBL MILPAC: 1.4 LB/BBL MILTHIN OR TERMATHIN: l LB/BBL TO CONTROL RHEOLOGY IF NECESSARY LIGCON: 1.4 LB/BBL FOR WALL CAKE IF NECESSARY NEWDRILL: 0.7 LB/BBL TO IMPROVE LUBRICITY IF NECESSARY A-1 CONFIDENTIAL • TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com RECOMMENDED MUD PROPERTIES: • 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 USA MUD WEIGHT: 1.05/1.2 S.G. (8.7-10 PPG) VISCOSITY: 45/50 SEC PH: 9/10 YP (Yield Point): 8-15 LB/100FT2 PV (Plastic Viscosity): ALAP GELS 10"/10": 2/10 LB/100FT2 API F.L. (Fluid Loss): 10 CC FILTER CAKE: 0.5-1 mm 7 -1/1 -inch Phase (±10,000 ft to -F 14.000 ftor up to the first important loss of cirrrdution) MUD TYPE: LOV1' SOLID -BENTONITE -POLYMER SYSTEM RECOMMENDED CHEMICAL CONCENTRATION BENTONITE: 18 LB/BBL CAUSTIC SODA: 0.35-0.7 LB/BBL MILPAC: 1 LB/BBL MILTHIN OR THERMATHIN: 1 LB/BBL TO CONTROL RHEOLOGY IF NECESSARY LIGCON: 1 LB/BBL TO IMPROVE WALL CAKE IF NECESSARY NEWDRILL: 0.7 LB/BBL TO IMPROVE LUBRICITY IF NECESSARY RECOMMENDED MUD PROPERTIES: MUD WEIGHT: 1.1/1.2 S.G. (9.2-10 PPG) VISCOSITY: 40/50 SEC PH: 9/10 YP: 8-15 LB/100FT2 PV: ALAP GELS 10"/10": 2/20 LB/100FT2 API F.L.: 10-15 CC FILTER CAKE: 1 mm Volumes of product usage during the preceding stages will depend on presence of circulation losses and the casing setting depth. A-2 CONFIDENTIAL • 3260 BLUME DRIVE, SUITE 220 eothermEx, Inc. RICHMOND, CALIFORNIA 94806 USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.coin 7 -1/2 -inch Phases (nater or lieht nutd Trill he ttsed to drill below the first important loss ofcirculatimt) IF CONDITIONS REQUIRE THAT HIGH-VISC PILLS BE PUMPED AT DRILL PIPE CONNECTIONS DURING THESE DRILLING PHASES. RECOMMENDED COMPOSITION FOR HI VIS PILL WATER: 50 BBL MILVIS OR NEWDRILL : 3.5 — 5 LB/BBL TO REACH 80-90 SEC OF VISCOSITY OR WATER: 50 BBL BICARB: 0.7 LB/BBL BENTONITE: 18 LB/BBL TO HAVE 60-70 SEC OF VISCOSITY LIME: 0.35 LB/BBL Note: Milpac, Milthin, Ligcon, Newdrill, Milvis and Milgel are trade names of products marketed by Baker Hughes-Inteq; Thermathin is a product of Baroid. Equivalent products from other suppliers may be substituted. A-3 [CONFIDENTIAL] TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com 3260 BLUME DRIVE, SUITE 220 Geotherm Ex, Inc RICHMOND, CALIFORNIA 94806 - USA APPENDIX B RECOMMENDED WELDING PROCEDURE FOR 16 -3/4 -INCH CASING HEAD CONFIDENTIAL 3260 BLUME DRIVE, SUITE 220 Geotherm Ex, Inc. RICHMOND, CALIFORNIA 94806 USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothennex.com RECOMMENDED PROCEDURE FOR WELDING CASING HEADS IN GEOTHERMAL WELLS The welding of the casing head to the production casing for all geothermal wells should follow the API standard 6A (fourteenth Ed ition, March 1983, Appe ndix B). A direct extraction of this standard follows, with comments and additions in bold and/or italic. API RECOMMENDED PROCEDURE FOR WELDING PIPE TO WELLHEAD EQUIPMENT 131 INTRODUCTION AND SCOPE - The following recommended procedure has been prepared with particular regard to attaining pressure tight welds when attaching casing heads, flanges, etc., to casing. Although most of the high strength casing used is not normally considered suitable for field welding, some success may be obtained by using the following or similar procedures. CAUTION: In some wellheads, the seal weld is also a structural weld and can be subjected to high tensile stresses. Consideration must therefore be given by competent authority to the mechanical properties of the weld and its heat affected zone. The 20" surface casing is K-55, a mild steel that is suited for field welding. The wellheads are also made from mild steel with a Rockwell C hardness (HRC) of approximately 22. Wellheads may occasionally be welded on N-80 casing (when the surface casing is 16", 13-3/8" or 9-5/8"), a mild steel that has been heat treated for higher strength. Welding will reduce the pipe strength to the equivalent of a K-55 joint. This is generally not a problem because other factors cause the wellhead connection to be several time stronger than necessary, but the casing performance design should be checked to make sure that the joint will be strong enough if the casing head is welded onto high strength casing. 1) The steels used in wellhead parts and in casing are high strength steels that are susceptible to cracking when welded. It is imperative that the finished weld and adjacent metal be free from cracks. The heat from welding also affects the mechanical properties. This is especially serious if the weld is subjected to service tension stresses (such as changes in temperature in geothermal wellheads). 2) This procedure is offered only as a recommendation. The responsibility for welding lies with the user and results are largely governed by the welder's skill. Weldability of several makes and grades of casing varies widely; thus placing added responsibility on the welder. Transporting a qualified welder to the job, rather than using a less skilled man who may be found at hand, will, in most cases, prove economical. The responsible operating representative should ascertain the welder's qualifications and, if necessary, assure himself by instruction or demonstration, that the welder is able to perform the work satisfactorily. (We recommend screening welders prior to the weld jobs.) CONFIDENTIAL • 3260 BLUME DRIVE, SUITE 220 GeothermEx, In RICHMOND, CALIFORNIA 94806 USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com B2 WELDING CONDITIONS — Unfavorable welding conditions must be avoided or minimised in every way possible, as even the most skilled welder cannot successfully weld steels that are susceptible to cracking under adverse working conditions, or when the work is rushed. Work above the welder on the drill floor should be avoided (stopped). The weld should be protected from dripping mud, water, and oil, also from wind, rain, or other adverse weather conditions (place tarp above the working area). The drilling mud, water or other fluids must be lowered in the casing and kept at a low level until the weld has properly cooled, (at least 3 ft below the top of the casing). It is the responsibility of the user to provide supervision that will assure favorable working conditions, adequate time, and the necessary cooperation of the rig personnel. B3 WELDING — The welding should be done by the shielded metal arc or other approved process. B4 FILLER METAL — After the root pass, low hydrogen electrodes or filler wires of a yield strength equal to the casing yield strength should be used. The low hydrogen electrodes include classes EXX15, EXX16, EXX18, EXX28 of AWS A5.1 (latest edition): Mild Steel Covered Arc -Welding Electrodes* and AWS A5.5 (latest edition: Low Alloy Steel covered Arc -Welding Electrodes*. Low hydrogen electrodes should not be exposed to atmosphere until ready for use. We recommend E6010 welding rod for the root pass and #7018 for the filler passes. B5 PREPARATION OF BASE METAL — The area to be welded should be dry and free of any paint, grease, scale, rust or dirt. B6 PREHEATING — Both the casing and the wellhead member should be preheated to 2500 - 400° F (121° - 204° C) for a distance of at least 3 inches (76.2 mm) on either side of the weld location, using a suitable preheating torch (our target is 392OF with a electric heat blanket). Before applying preheat, the fluid should be bailed out of the casing to a point several inches (mm) below the weld location, (at least 3 ft below the top of the casing). The preheat temperature should be checked by the use of the heat sensitive crayons (because temperature instruments are unreliable if not calibrated and maintained properly). Special attention must be given to preheating the thick sections of the wellhead parts to be welded, to insure uniform heating and expansion with respect to the relatively thin casing. The preheat treatment should include 1 hour soak after 2000IC is achieved before proceeding with tack welding. Note: Preheating may have to be modified because of the effect of temperature on adjacent packing elements, which may be damaged by exposure to the temperatures of 200° F (93° C) and higher. Temperature limitations of the packing materials should be determined before the application of preheat, (does not apply for initial installation of 20 %" casing heads). B7 WELDING TECHNIQUE — Use a 1/8 or 5/32 inch (3.2 or 4.0 mm) E6010 electrode and step weld the first bead (root pas); that is, weld approximately 2 to 4 inches (50 to 100 mm) and the move diametrically opposite this point and weld 2 to 4 inches (50 to 100 mm). Then weld 2 to 4 inches (50 to 100 mm) halfway between the first two welds, move diametrically opposite this weld and so on until the first pass is completed. The second pass should be made with a 5/32 -inch (4.0 mm) low hydrogen electrode of the proper CONFIDENTIAL 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com strength and may be continuous. The balance of the welding groove may then be filled with continuous passes without back stepping or lacing, using a 3/16 inch (4.8 mm) low hydrogen electrode (E7018). All beads should be stringer beads with good penetration, and each bead after the root pass should be thoroughly cleaned before applying the next bead. There should be no undercutting and welds shall be workmanlike in appearance (we emphasize the importance of the workmanship and the wellsite supervisor will visually inspect the final welds. Ideally for a quality weld, four (4) inside passes and eight (8) outside passes should be done. The outside passes should form a fillet approximately %" on a side). 1) Test ports should be open when welding is performed to prevent pressure build- up with the test cavity. 2) During welding, the temperature of the base metal on either side of the weld should be maintained at 250° F (121° C) minimum (maintain the target of 392 -F). 3) Care should be taken to insure that the welding cable is properly grounded to the casing, but ground wire should not be welded to the casing or wellhead. Ground wire should be firmly clamped to the casing, the wellhead, or fixed in position between pipe slips. Bad contact may cause sparking with resultant hard spots beneath which incipient cracks may develop. The welding cable should not be grounded to the steel derrick, or to the rotary table base. B8 CLEANING — All slag or flux remaining on any welding bead should be removed before laying the next bead. This also applied to the completed weld (again emphasis on workmanship). B9 DEFECTS — Any cracks or blowholes that appear on any bead should be removed to sound metal by chipping or grinding before depositing the next bead. B10 POSTHEATING — For the removal of all brittle areas in high strength steel casing, a post heat temperature of 10500 - 1100° F (5660 to 593° C) is desirable. It is recognized, however, that this temperature is difficult or impossible to obtain in the field, and that the mechanical properties of the wellhead parts and pipe may be considerably reduced by these temperatures. As a practical matter, the temperature range of 5000 900° F (2600 to 482° C) has been used with satisfactory results (our recommended target is 800° F, with 1 hour soak after reaching target temperature. B11 COOLING — Rapid cooling must be avoided (after soak, bring temperature down to 3920F over a period of 1-112" hours with blanket on). To assure slow cooling, welds should be protected from extreme weather conditions (cold, rain, high winds, etc.) by the use of a blanket of asbestos or other suitable insulating material. Particular attention should be given to maintaining uniform cooling of the thick sections of the wellhead parts and the relatively thin casing, as the relatively thin casing will pull away from the head or hanger if allowed to cool more rapidly. The welds should cool in air to 250° F (121° C) (measured with a heat sensitive crayon) prior to permitting the mud to rise in the casing (allow casing head to cool to ambient temperature for weld inspection). CONFIDENTIAL • • Geotherm Ex, Inc. RICHMO BLUMDRIVE, SUITE 220 DECCALIFORNIA 94806 USA TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex com WELD INSPECTION: After casing head is allowed to cool to ambient temperature, perform a pressure test using nitrogen with a freon tracer. Conduct the pressure test to 1000 psig for 10 minutes. Use a Freon detector or soapy water to locate any leaks if the pressure does not hold. When a successful pressure test is obtained and witnessed by the well site supervisor or drilling engineer, bleed off the pressure and install the port plug. If either of these tests fail - fully grind the effected area of the base material. Re - weld the area using full pre -heat and post -heat procedures given above. Re - conduct the pressure and MPI tests. CONFIDENTIAL TELEPHONE: (510) 527-9876 FAX: (510) 527-8164 E-MAIL: mw@geothermex.com Root Pass 2"' Pass 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 USA ;Port ass CONFIDENTIAL TELEPHONE: (510) 527-9876 FAX: (510)527-8164 E-MAIL: mw@geothermeX.COm 3260 BLUME DRIVE, SUITE 220 Geotherm Ex, Inc. RICHMOND, CALIFORNIA 94806 - USA APPENDIX C EGS-RELATED PROCEDURES CONFIDENTIAL TELEPHONE: (510) 527-9876 FAX: (510)527-8164 E-MAIL: mw@g@0thermeX.com 3260 BLUME DRIVE, SUITE 220 GeothermEx, Inc. RICHMOND, CALIFORNIA 94806 -USA Appendix C EGS-Related Procedures — Wellbore Logging, Core Collection and Leak -Off Testing Upon reaching the specified depth for the bottom of the 10 -5/8 -inch hole section (estimated at 10,000 feet): 1. Run open -hole log sonic -gamma -density log before running casing. 2. Set and cement casing. Wait on cement. 3. Drill out cement and drill formation approximately 3-5 feet below the casing shoe. 4. Pull out the BHA and run in with a core cutting assembly. 5. Proceed to obtain a 10 -foot core. If no core is recovered, attempt to obtain another core, this time it might be limited to 5 feet. 6. After the core has been cut, brought to surface and preserved, pull out and run back in with an RTTS tool (Retrievable Test, Treat and Squeeze Packer). 7. Set tool inside the casing, approximately 50 feet above the shoe. Test the RTTS seal by pressurizing the backside of the drill pipe to 500 psi. 8. Monitor the annular pressure at the surface. 9. Reposition the RTTS tool if it the annular pressure drops more than 5% in 30 minutes. 10. Once the tool is completely sealed, proceed to run an extended formation leak -off test (at least three cycles — one breakdown and two re -opening) utilizing the cementing pumps. Keep flow rates as constant as possible during all cycles. 11. Continuously record downhole pressure and temperature data during the leak -off testing. CONFIDENTIAL 3260 BLUME DRIVE, SUITE 220 Geotherm Ex, I nC. RICHMOND, CALIFORNIA 94806 -USA TELEPHONE: (510) 527-9876 FAX: (510)527-8164 E-MAIL: mw@geothermex.com 12. Retrieve the temperature/pressure monitoring tool and the RTTS tool. Run back in with the drilling BHA. Upon reaching TD: 1. Run open -hole logs before running liner: a. Acoustic log (with gamma and density). To derive compressional and shear wave velocities and to collect Stoneley wave data. Shear wave data to be acquired in cross -dipole mode with orientation; Stoneley wave data to be acquired with low -frequency transmitters and receivers. b. Wellbore Image log (with gamma for depth correlation). To evaluate wellbore failures (breakouts and tensile cracks) and natural fracture population. 2. Collect an additional core from TD. 3. Make decision about whether or not liner is needed. If the hole is stable, an un -lined hole is preferable, particularly (but not exclusively) for EGS activities (hydraulic stimulation, etc.). CONFIDENTIAL ",,., jimes and all casing will be cemented back to the surface, isolating fresh water aquifers from cbntact with the activities and fluids in the wellbore. The gedtbermal resource being sought through the NEA exploration program is a renew le resource, unlike oil and gas which are depleted through production over the life of th e d. Heat in a geot era,l� field is constantly being renewed by the earth's mantle or mtrusive magma body situated -0 great depth. Neither of these sources would be co in any measurable way by the ea action of heat from either a single well or ries of wells. Geothermal development an eration over many decades recovmiSonly a few percent of the stored heat in the reservoir. The t -depleted fluid from a-pe6ject is re -heated by heat transfer from the rock. There is no mass deplete since all of tl�e uids are re -injected into the reservoir after being used. .� Given the lack of historic well data in tK vicinity of the aknek-G #1, it is dlfflcult to accurately anticipate the type of geothermal system that ma exist (conventional hydrothermal or "hot dry -rock"); and, theroft5re, nearly impossible to accurate calculate a drainage radius, which would apply only. tS`wells established in a conventional hydr ermal system. The drainage radius for eat extraction «-i11 be confined mostly between inje 'on and production wells, while t rainage radius for fluid will also be small, given that 100% the produced fluid will re -injected. Once the initial hydrologic data and reservoir type are rmined at the N -nek-G #I location, it will be possible to create a standard conceptual model fo'he sect area and, in the event of a conventional hydrothermal system, calculate a relative drainage radius for wells in the project area. • Naknek Electric Association, Inc. Geothermal Exploration Project Naknek-G #1 Project Description General Overview: Naknek Electric Association, Inc. ("NEA") proposes to explore for deep geothermal resources on a 120 -acre private Native allotment owned by NEA, and located approximately five miles northeast of King Salmon, Alaska. The allotment resides within the Bristol Bay Borough in T17S, R44W, Section 14, E1/2SW1/4 and Section 23, NE1/4NW1/4, SM. All acreage surrounding the NEA allotment is owned by Paug-Vik Inc. Ltd. (Village Corporation) with subsurface rights retained by Bristol Bay Native Corporation. The proposed three-year exploration program will consist of up to six wells to be drilled and evaluated for commercial geothermal resource potential. NEA plans to drill the first well in this program, Naknek-G #1, commencing in August, 2009. Future well locations will be determined based upon data gathered from earlier wells and any additional geological and geophysical data acquired by NEA. It is expected that all geothermal exploration wells in this multi -well program will be drilled using the same operational procedures outlined in the attached Drilling Procedure prepared by GeothermEx, Inc. of Richmond, California, which has been retained by NEA as the geothermal consultant on the project. The drilling program outlined by GeothermEx, represents standard procedures and current best practices for deep geothermal exploration. Naknek-G #1: The first proposed deep exploration well, Naknek-G #1, will be a vertical well reaching a maximum total depth of 14,000ft, located in the northern portion of the NEA allotment, in T17S, R44W, Section 14. The presence of a geothermal resource in the area has not yet been confirmed by drilling; therefore the well has been designed to investigate conditions at various depth intervals. The nearest existing completed well is the Great Basins # i, drilled in 1959 and located approximately 60 miles southwest of the Naknek-G # 1. Though no wells have been drilled near the project area, the lithologic sequence is expected to be +/- 700 feet of glacial till and moraine on top of at least 5,000 feet of Eocene to Oligocene age (48 to 28 million year old) Meshik Volcanics consisting of andesitic to basaltic lava, breccias, tuff, and lahars. The Meshik Volcanics are possibly intercalated with sandstone, shale, and mudstone of the non -marine Stepovak Formation. The Stepovak and Meshik formations lie unconformably on lower Jurassic- age Talkeetna Formation volcanics and voldanoclastics possibly cored by granitic crystalline basement rocks that are probably mid -Jurassic in age (206 to 163 million years old). Given that the lithologic sequence in the project area is expected to be Meshik Volcanics to a depth of greater then 5,000 feet, shallow gas hazards in the top 2,000 feet of the well are not anticipated. The target area is cut by splays of the Lake Clark Fault system, a wide, steeply dipping extensional feature with recent offset that may provide a conduit for more recent igneous intrusives and/or hydrothermal activity. Temperature gradients from regional oil and gas wells on the Alaska Peninsula, at distances of 60 to 100 miles from the project site, range from 1.7 degrees F to 2.3 degrees F per 100 feet of depth. The Naknek--G #I will be drilled using the procedures outlined in the Drilling Procedure document prepared by GeothermEx, Inc. It is anticipated that well drilling and evaluation will take approximately 97 days to complete. Given that a geothermal resource has not been confirmed in the project area, well drilling and design allow for the evaluation of both a hot, dry -rock system and a possible deep hydrothermal system. Bottom -hole pressures are not anticipated to exceed 5,OOOpsig. Blow-out prevention equipment will be in use on the well at all times and all casing will be cemented back to the surface, isolating fresh water aquifers from contact with the activities and fluids in the wellbore. The geothermal resource being sought through the NEA exploration program is a renewable resource, unlike oil and gas which are depleted through production over the life of the field. Heat in a geothermal field is constantly being renewed by the earth's mantle or an intrusive magma body situated at great depth. Neither of these sources would be cooled in any measurable way by the extraction of heat from either a single well or a series of wells. Geothermal development and operation over many decades recovers only a few percent of the stored heat in the reservoir. The heat -depleted fluid from a project is re -heated by heat transfer from the rock. There is no mass depletion since all of the fluids are re -injected into the reservoir after being used. Given the lack of historic well data in the vicinity of the Naknek-G # 1, it is difficult to accurately anticipate the type of geothermal system that may exist (conventional hydrothermal or "hot dry -rock"); and, therefore, nearly impossible to accurately calculate a drainage radius, which would apply only to wells established in a conventional hydrothermal system. The drainage radius for heat extraction will be confined mostly between injection and production wells, while the drainage radius for fluid will also be small, given that 100% of the produced fluid will be re -injected. Once the initial hydrologic data and reservoir type are determined at the Naknek-G #1 location, it will be possible to create a standard conceptual model for the project area and, in the event of a conventional hydrothermal system, calculate a relative drainage radius for wells in the project area. 632000 634000 636000 638000 640000 642000 644000 646000 648000 Inc. .. •.j 1 'N. C) ( J ( +%' 'm �a'� b act t li 6 L' �j \ = --, _ �� os f r-``� `� .. It r,r t rit t {- r � i j �. 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Alask Eartha -, 0 1 2 3 4 5 Sciences! Km Geothermal Exploration Project Location Map 1yan Apf2009g 1:63,360 NAD'83 UTM z4N i • • Naknek Electric Association, Inc. Geothermal Exploration Project Naknek-G #1 Project Description eneral Overview: Naknek Electric Association, Inc. ("NEA") proposes to explore fci deep ge hermal resources on a 120 -acre private Native allotment owned by NEA, and 1 ated appy imately five miles northeast of King Salmon, Alaska. The allotment resides ithin the Bristo ay Borough in T17S, R44W Section 14, E1/2SW1/4 and Section 23, 1/4NW1/4, SM. All creage surrounding the NEA allotment is owned by Paug-Vik Inc. d. (Village Corporatio ) with subsurface rights retained by Bristol Bay Native Corporation. The proposed ree-year exploration program will consist of up to six walls to be drilled and evaluated for co mercial geothermal resource potential. NEA plans to/drill the first well in this program, Naknek-#1, commencing in August, 2009. Future well 19Cations will be determined based up n data gathered from earlier wells and any additional geological and geophysical data acqui ed by NEA. It is expected that all geotherMal exploration wells in this multi -well program will e drilled using the same operational pr&edures outlined in the attached Drilling Procedu prepared by GeothermEx, Inc. of Richmond, California, which has been retained by NEA as th eothermal consultant on the p'oject. The drilling program outlined by GeothermEx, reps sents standard procedures acrid current best practices for deep geothermal exploration. Naknek-G #1: The first proposed ep exploration Ezell, Naknek--G #1, will be a vertical well reaching a maximum total depth of 14, 00ft, located/in the northern portion of the NEA allotment, in T17S, R44W, Section 14.TR he prese ce of a geothermal resource in the area has not yet been confirmed by drilling; therefov\e the ell has been designed to investigate conditions at various depth intervals. The n` a est existing completed well is the Great Basins #1, drilled in 1959 and located approximatel0 miles southwest of the Naknek-G #1. Though no wells have been drilled near t e projec area, the lithologic sequence is expected to be +/- 700 feet of glacial till and morai eon top of a least 5,000 feet of Eocene to Oligocene age (48 to 28 million year old) Meshi olcanics consisting of andesitic to basaltic lava, breccias, tuff, and lahars. The Meshik Volcan' s are possibly interhalated with sandstone, shale, and mudstone of the non -marine Step ak Formation. The Ste ovale and Meshik formations lie unconformably on lower Jurassi age Talkeetna Formationi-olcanics and volcanoclastics possibly cored by granitic crys Illi basement rocks that areIrobably mid -Jurassic in age (206 to 163 million years old). Gi en that the lithologic sequence in hoe project area is expected to be Meshik Volcanics to a dept of greater then 5,000 feet, shallow gahazards in the top 2,000 feet of the well are not anticio6ted. The target area is cutby splays of the Lake Clark Fault system, a wide, '��eeply dipping extensional feature ith recent offset that may provide a conduit for more Kecent igneous intrusives and/or drothermal activity. Temperature gradients from regidval oil and gas we/edin e Ala a Peninsula, at distances of 60 to 100 miles from the projecf site, range from 1.7 F t 2.3 degrees F per 100 feet of depth. w. Th -G # 1 will be drilled using the procedures outlined in the Drilling ProMcc+,dure dorepared by GeothermEx, Inc. It is anticipated that well drilling and evaluation will taimately 97 days to complete. Given that a geothermal resource has not been y con the project area, well drilling and design allow for the evaluation of both a hot, drstem and a possible deep hydrothermal system. Bottom -hole pressures are not an to exceed 5,000psig. Blow-out prevention equipment will be in use on the well at all 644000 644500 645000 Explanation of Symbols NEA Property Boundary -Y i. 3 ur NEA Proposed Locations�� Drill Site -- Drill Pad i 7 1 Access Road 75 • � l ' r k _ !.. 'iY�, �` jv. J' A .T �- . i� X74 fi +i V. t CD totj Y, t gy aO i e • Fr # � r,f#7r r i "r {A * - � J �`�, � •! 7' f "�' T." -1t: ✓ �y'� � ey��:» i ."�' +. �r y .r L }v �, � { � �4r v i�'iK�►" N : +• 7d>fi.a c . • Y r . ,:. a � ♦ �k .. ,� 0 0 C) Ln LC) 1 h( Al., s.. M aN 44 `iy"t Vi , 1 r • K _�..r .*..!„ t.. } oC ,+ ate`... .ri+�y+ x ..:.a:. r, a • 11. �1,V v »�.." :' CD ` [ it-�' � N- - - N r.wLn w --- Naknek Electric Association Alaska N 0 100 200 300 Earth Meters Geothermal Exploration Project Sciences'` Feet Ryan Young 0 200 400 600 800 1,000 Location of Naknek-G1 29 May 2009 1:6,000 NAD'83 UTM z4N The Castle Mountain Group, Inc. P.O. Box 1208 Chickaloon, Alaska 99674 907-232-1192 ags@mtaonline.net PAY TO THE ORDER OF State of Alaska FIRST NATIONAL BANK ALASKA 303 West Evergreen Ave. Palmer, Alaska 99W 89-6/1252 6/1/2009 $ **100.00 One Hundred and 00/100wwwwwwwwwwwwwwwwwwwwwwwwrte*ww wwwwwwwwwwewwwwwwwwwwwwwwww*wwwwww*wwwwww*wwwwwt*rte*wwwwwww*r********+DOLLARS ni h,z' State of Alaska Department of Natural Resources Void After 90 Days 550 W 7th Avenue Anchorage, AK / �A MEMO II 000 30 9 e is L 2 S 2000 601: 301,6 OSI 311' La t. 58°42'11.86405" N. Long. 156°30'27.82321" W. N Q0 N W ro O 0 Vi Lot. 58°41'45.84540" N. Long. 156°30'27.76685" W. LEGEND CD 6� r� r CD O 0 ui + FND. BLM BCMON Note: All Lot and Long. NAD '83 Lot. 58°41'32.84271" N. Long. 156°30'27.81490" W. 0 • S.89°56'16"W. 1319.67olLot. 58°42'11.87815" N. Long. 156°30'02.84354" W. 0 O Lq Ni L N N d Q0 N OF Gravel Pad 599.11 0 *: 9 TH It i O i ............ -0 RAL J. MAN CU SO : o LS 7611 // J'], •' Jam.= G 1 /, FBF Long 58'41'5614.18000"NW 11 rI ��0 E-ss IONN\- N E A Property E 1/2, SW 1/4 Sec 14 and NE 1/4, NW 1/4 Sec 2 T. 17S., R.44 W., S.M. N.89°58'41 "E. 1320.70 I CERTIFICATE OF REGISTERED LAND SURVEYOR I HEREBY CERTIFY THAT I AM A REGISTERED PROFESSIONAL LAND SURVEYOR AND THAT THIS PLAT REPRESENTS THE SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION, AND THE MONUMENTS SHOWN THEREON ACTUALLY EXIST AS LOCATED, AND THAT ALL DIMENSIONAL AND OTHER DETAILS ARE CORRECT. '�'w 6-13-09 � '/ DATE REGIST ED LAND SURVEYOR C:lcafteaftundary.dwg, 7/13/2009 3:54:04 PM,1:500 Lat. 58°41'45.83044" N. Long. 156'30'02.83906" W. Sec 14 Sec 23 0 C6 M CD SCALE in FEET Ln un 500 0 500 1000 O Al" W 99.66 wC S S9 5S Lat. 58°41'32.84777" N. Long. 156°30'02.44006" W. �J 30. Formation Tesfb DST NUMBER DATE 'V 12/26/84 2 3 �� 5 8 0 10 11 12 13 14 15 i BECHAROF STATE NO. 1 INTERVAL FEET PERFORATION AND RECOVERY DATA 8,300 - 8,332 Perforated 4 SPF, 0.5" holes. DST toui iaiiure, nu recovery. 12/27/84 8,300 - 8,332 No recovery. 12/28/84 7,780 - 7,880 Perforated 4 SPF, 0.5" holes. - Total -recovery 2,392 feet (15.7 bbl) drilling mud, water. No shows. 12/30/84 7,470 - 7,550 Perforated 4 SPF, 0.5" holes, DST tool plUgged, 0.9 bbl recovery, drilTing mud. 12/31/84 7,470 - 7,550 Flowed gas to surface, 30 MCFD 9 30 stq. 12/31/84 6,860 - 6,960 Perforated 4 SPF, 0.5" holes. DST tool failure, no rPmary_ 01/01/85 6,860 - 6,960 Perforated 4 SPF, 0.51'.holes. DST tool failure, no recover,. 01/02/85 6,860 - 6,960 Flowed gas to surface, 50 MCFD @ 10-50 psig. 01/03/85 6,640 - 6,655 Perforated 4 SPF, 0.5" holes plugging DST tools, no recover. 01/04/85 6,640 - 6,655 Flowed gas to surface, - 10 MCFD @ 14 psig. 01/08/85 7,660 - 7,760 Perforated 4 SPF, 0.5" holes recovered 1,900 feet (12.5 bbls) muddy water - no shows. 01/10/85 7,660 - 7,760 Recovered 1,000 feet (6.5 bbls) of muddy water. 01/12/85 6,030 - 6,090 Perforated 2 SPF 0.5" holes bbls) Recovered 597 feet (4 of water. 01/17/85 4,201 - 4,211 Perforated 4 SPF, 0.5" holes Recovered 1,019 feet (6.7 bbls)- gas cut water. 01/18/85 4,201 - 4,211 Recovered 1,430 feet (9.4 bbls) RECE1VEDof water. FEB251985 t arrI y�tr•. nit & Gas tire.-GOmmL%W� 44W Mtknak (,•t TRANSMITTAL LETTER CHECKLIST WELL NAME AlAeNE C -% PTD# X09096 Development Service Exploratory Stratigraphic Test Non -Conventional Well FIELD: POOL: Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and 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 LL PERMIT COMPANY NEA WELL NAME Naknek G-1 PROGRAM Exploratory (EXP) x Development (DEV) Redrill Service (SER) Well bore seg _Annular disposal para req FIELD & POOL Initial Class/Type EXP / GEOL AREA King Salmon UNIT No. ON/OFF SHORE On ADMINISTRATION 1. Permit fee attached......................................................................................... NA Fee no longer required for an AOGCC permit to drill 2. Lease number appropriate............................................................................... Need landownership information: plat & copy of lease agreement with a legal description of affected property; need landowner and owner info for adjacent properties 3. Unique well name and number......................................................................... Yes 4. Well located in a defined pool ...................................................... ................. NA Geothermal well 5. Well located proper distance from drilling unit boundary ........................................ Need landownership plat 6. Well located proper distance from other wells ...................................................... Yes No other wells nearby APPR DATE 7. Sufficient acreage available in drilling unit.......................................................... Need landownership plat 8. If deviated, is wellbore plat included................................................................. NA Vertical well 9. Operator only affected party............................................................................. Need landownership, ownership and operator information for affected and adjacent properties 10. Operator has appropriate bond in force............................................................. No Need AOGCC bond: $100,000 single well 11. Permit can be issued without conservation order ................................................ Uncertain until landownership, ownership and operator information for affected and adjacent properties is provided 12. Permit can be issued without administrative approval .......................................... NA Not Applicable 13. Can permit be approved before 15 -day wait ...................................................... NA Not Applicable (For Service Wel I Only) 14. Well located within area and strata authorized by Injection Order # NA Not Applicable (For Service Wel I Only) 15. All wells within 1/4 mile area of review identified ................................................ NA Not Applicable (For Service Wel I Only) 16. Pre -produced injector: duration of pre -production less than 3 months ..................... NA Not Applicable 17. ACMP Finding of Consistency has been issued for this project ............................... NA Not Applicable ENGINEERING 18. Conductor string provided............................................................................... 19. Surface casing protects all known USDWs......................................................... 20. CMT vol adequate to circulate on conductor & surf csg........................................ 21. CMT vol adequate to tie-in long string to surf csg................................................ 22. CMT will cover all known productive horizons ................................................... 23. Casing designs adequate for C, T, B & permafrost ............................................. 24. Adequate tankage or reserve pit................................................................... 25. If a re -drill, has a 10-403 for abandonment been approved .................................. 26. Adequate wellbore separation proposed............................................................ 27. If diverter required, does it meet regulations .................................................. 28. Drilling fluid program schematic & equip list adequate ......................................... APPR DATE 29. BOPEs, do they meet regulation............................................................... ... 30. BOPE press rating appropriate; test to ....................... 5000 psig ................... 31. Choke manifold complies w/API RP -53 (May 84) ............................................... 32. Work will occur without operation shutdown...................................................... 33. Is presence of H2S gas probable.................................................................... (For Service Wel I Only) 34. Mechanical condition of wells within AOR verified ................................................ GEOLOGY 35. Permit can be issued w/o hydrogen sulfide measures .......................................... No Exploratory well; must meet requirements of 20 AAC 25.065 36. Data presented on potential overpressure zones ................................................. No Exploratory well; must meet requirements of 20 AAC 25.005(c)(4) APPR DATE 37. Seismic analysis of shallow gas zones.............................................................. No Exploratory well; must meet requirements of 20 AAC 25.061 38. Seabed condition survey (if off-shore)............................................................... NA Not Applicable 39. Contact name/phone for weekly progress reports [exploratory only] ..................... Yes Cord Feige 907-232-1192 GEOLOGY: ENGINEERING: RES. ENGINEERING: COMMISSION: CommentsAnstructions WELL PERMIT CHECKLIST Field & Pool Well Name: NAKNEK G-1 Program EXP Well bore seg ❑ PTD#:2090960 Company NAKNEK ELECTRIC ASSOC INC Initial Class/Type EXP/PEND GeoArea 810 Unit 00000 On/Off Shore On Annular Disposal ❑ Administration 1 Permitfee- attached --------- ---------------------------------- NA---------------------------------------------------------------------------- 2 _LeasenurnWappropriate-------- ---------------------------------NA---------------------------------------------------------------------------- 3 Unique well name�aacinumber--------------------------------------Yes ---------------------------------------------------------------------- 4 WellJocatedinadefinedpool---------------------------------------- No__-----.Exploratory-Gzeothermal_well.---------------------------------------------------- 5WellJocatedproperdistancefromdrillingunitboundary-------------------------NA---------------------------------------------------------------------------- 6 Well Jocatedproper _distance from other welts ___------__-•__________________ Yes---..--------------------------------------------------------------------- 7 Svtficlentacreage avatlabtein-drillingUnit---------------------------------NA----•--------------- -------------------------------------------------------- 8 If_devlated,IswellboreplatIncluded--------------------------- --------- NA- - ------- ----- - --- ------- -- -- --- --- - -- - -- - - - --- 9 -Operator onlyaffected-party -------- - - - - -- - --------- - - - - -- ----- Yes - - -------- - - - - ---------- 10 .Operator has apprqprlate bond In_foroe----------------------------------NA----------------------------------- --------- ---------- - --- -- -------------- 11 Permit canoe_issuedwlthoutconseNatfonorder-----------------------------Yes---------------•----------------•------------------------------------------ Appr Date 12 Permltconbe. issuedwithout administrative approvel--------------------------- Yes---- ... ---------------------- ___ ---------------------- ---- 13 Can permit be approved before 15-day-welt-----------------------•----_-__ Yes_ ----------------------------•--------------------------------------------- ACS 9/3/2009 14 WellJocatedwithin.aresand strataautharized_byJnjectionOrder#(put 10#in_cemments)4For__-NA---------------------------------------------------------------------------- 15 Aliwelts wJtbinl/4mlleareeofreview ldentifled- (For service well only) -----------------NA___------------------_.-_-___----------------------------------------------- 16 Prit-procluced-injector:,duratiorLof pro--pro-duction. less Ahan -3 -months (For service well- only)-._-NA---------------------------------------------------------------------------- 17 -N-onconven,_gasconform toAS31,05,030CLII_.A),G.2A-D)----------------•-------NA------------------------------ ---------------------------------------------- 18 Conductor string provided------- --- --- --- -- ----- ---- ------- - - - - -- Yes -------30"x100"------------------------------------------------------------- Engineering 19 S.urfacecosingprotectsallknownUSOWa-------------------------- - - - - -- Yes -------$et0400',cmtd to-s-wrface•---------------------------------------------------- 20 CMT_voladequatoto_ciroulateoncondmotor_&aurfcsg------------------------- Yes -------Adequateemess.---------------------------------------------------------- 21 CMT-vol-adequatetotie-Jrtlong -string to surf cog--------- - - - - -------- - - - - -- Yes - - - - - - - - - - - - - - - - -- -------------------------------------------------------- 22 CMT_wfllcoverall known productivehcrizons------------------------------- Yes ----------------•---------------------------------------------------------- 23 Casingdesigns. adequatofor C,T,B_&permafrost---------------------------- Yes ------.Adequatesafetyfactom.------------------------------------------------------ 24 Arlequatetankageorreservepit- - - - - --- -- -- -------- ----------- - - - - -- Yes - - - - -- -NEA Rig 7,--•----------------------------------------------------------- 25 Ifa.re-drJll,has a10-403 for-abaridonmentbeenopproyed------------------------NA-------_ New well .---_____________--------____-----.-_____----------------------- 26 Adequatewellboresepar_atim-proposed-------------------- - - - - --- - - - - -- Yes - _ - - - ---------------------- - - - - -- ---------------------------------------- 27 If-diverterrequired, does- it- moot regulations--------------------------------NA-----.--Diverterrequlrement waived .--_----_-...----__-_--_-_--------------------------- Appr Date 28 -Drilling. fluid -program-sohematic&equip-Ilst_adequate-------------------------- Yes-------MaxMW10.0ppg,----------------------------------------•---------------- WGA9/3/2009 29 -BOPE9, -do theymeet regulation -----------------------------•-------_Yes-------2K,5K,_19KBOPE.-__-____--------._----_-------------------.-------------- 30 -BOPE-presotating-appropriate;_ test to_(putpsigincomments) --------------------- Yes------- MAS P4380psi;.test to_45W_psi,------------_-_--..---_-_--------.------_-..----- 31 Choke manifold_complies WAN RP-53(May 84)-----------------------------Yes---------------------------------•----------------------------------------- 32 WorkwfUoccur_withoutoperation-shutdown-------------------------- - - - - -- Yes - -----------------------------•------------------------------------------- 33 AspreseneeofKagasprobable - - - -- -------- --- - --- ---- --- -- ------ -No- - - - - -------------------- - - - - -- ------------------------------------------ 34 -MechanicalcondltionofwellswlthlnAOR verifled(Forseryioewellonly) -----------------NA--------NotserviceweA,-----------_--------__---_----------_----....--_-__-------- 35 Permit can be_ issued w/o hydrogen. sulfide measures - - - - - - - - - - - - - - - - - - - - - - - - - - Yes - - _ _ _ _ - No known production of gas in the-surrounding wells; _Methane gas was tested_in the 6ecberof_#1 well, _ - - _ - - - - - - Geology 36 Data_preeentedonpotentioloverpreseurezones----------------------------- Yes- -------------------------------------------------------------------- - - - - -- Appr Date 37 Seismic analysis of shallowgaszones----------------------------- - - - - -- Yes - - - - - - - - - - ------------------- - - - - -- ---------------------------------- ACS 9/3/2009 38 Seabed condition_sjrvey(If off-shore)-----------------------------------NA---------------------------------------------------------------------------- 39 -Contact name/phone_forweeWyprogressreports lexploratory only] ------------------- yes ------- Donne Vukich-907-246-4261,-------------------------------------------------- Geologic Engineering Public Naknek G-1 well is an Exploratory Geothermal well. Well will not be usedfor hydrocarbon production, or tested if Hydrocarbons Commissioner: Date: Commissioner: Date Commissioner Date ;are encountered (ACS - 9/3/09). ri Well History File 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. Enclosures: Report on Shallow Gas Hazard Assessment (CONFIDENTIAL) Report on Expected Well Geology (CONFIDENTIAL) Plate—Naknek Lake Area Regional Geology Plate—Alaska Peninsula Oil and Gas Resource Series Plate 3 of 4 Plate—Stratigraphic Correlation Section North Aleutian Basin Sheet F-1 Shallow Hazards Analysis 20 AAC 25.061 (a, b and c) Well Site Surveys 20 AAC 25.033 (f) Primary Well Control for Drilling... Conclusions: A seismic survey was shot over the area. The results of the survey were of no value due to the interference caused by the volcanics in the area. There is no indication from water wells in the area, surface geology, surface expressions, and wells on the Alaska Peninsula that any shallow gas sources or over pressured or abnormally pressured strata will be encountered. Well bore design and BOP equipment are designed to handle any unexpected well bore event. See attached geologic reports for a more detailed explanation. HOLE CASING 26" TO 397' 22" FROM 0' TO 390' 20" TO 2890' 16" FROM 0' To 2885' 14.75" TO 7860' 11.75" FROM 2560' TO 7860' 'ric 10.625" TD WMIR GEOLOGIC TO FROM TO TO FROM TO COMPANY NEA ABBREVIATIONS SYMBOLS WELL G-1 FIELD NO New Bit BHT Bottom Hole Temp Wireline Log J Casing Shoe -run Rrun Bit Re C Carbide Test COUNTY/STATE King Salmon, AK CO Core Bit MR No Returns , Steam/Mater Entry H Flow Test MON Weight On Bit LAT Logged After Trip WELL HEAD COORDINATES SPM Strokes per Minute CFM Cubic Feet per Min PP Pump Pressure T Bottoms Up Temp BUT 14 Deviation Survey �] orInterval Section 23 T 175, R. 44W RPM Revolutions per Min NRe 1 No Recovery ELEVATION — — LITHOLOGY REMARKS SPUD DATE 8/16/2009 TO DATE Basalt.o o Glacial Deposits All KB = depths from KB 27' TOTAL DEPTH TRUE VERTICAL DEPTH arm a Breccia e ' rI' 1*. Greenstone 1 ! 1' PB= AES= Patrick Broderick Mark Neuroth TO LOCATION ® Shale Ash Flow Tuff MD= SA= Matt Dobbs Stephen Ahlquist CONTRACTOR/RIG NEA RIG 87 COMPANY REPRESENTATIVE Nick Scales _ _ Siltstone Tuff MV Bridged off at 3195' while RIH on 10/8. D Sandstone ® Quartzite Bridged off at 2898' while RIH an 10/22 LOG INTERVAL DATE LOGGED 9/01/09 TO HENEIR+ it Andesite + �+`+ Granodiorite DEPTH LOGGED 397 TO MUD DRILLING 397 TO <�� Rhyolite +++ Diorite SECONDARY MINERALS �� r + AIR DRILLING TDQ ® Schist 0Chert C = Quartz = Calcite Rare << 1% LOG SCALE 1 600 UNIT NO P = Pyrite Trace < 1% LOGGING GEOLOGISTS 199q Dacite ® Gneiss Pr N = HematiPyrrhote Hematite Minor 1X to Common IX to 7% 7X Broderick,Neuroth ® Dike Cl = Chlorite Abundant 7% to lox Dobbs,Ahlquist > 10% Tecton Geolpg.c hdknek -:ectrica. Association u-" Sca:e 6CC , Drilling Data .it"o:egy vinerais Temperatures Cir W:atior Descriptions ROP Temperature In Pit 'otal 100 ft/hr 0 200 bbls 1600 Temperature Cut 0 SO deg F 300 eei nt cn Bit � ar A N xis Obi �i rii�OO +s Puaip 2ressure C e its 00 C DS: au -,C fill Dr,11 26- hole to 397' Run 10 1-s of 22 .106s K -SS casing to a depth of ,R 61164 390'.Drill ahead with 20" N8 a2 MCC J3 20- i a BUT -63 dagf bit.Be in to in 8 397'. AES _ i Basalt Med-dk gry,blk,rust. hd-v nd.fresh,apnan txt,tr-c pheno 6 folds clasts 1n atx, m-a rust colored ■agnetite,c pyrcx.tr-mnr clr 6 wht Qtz vng,tr-mnr opid 6 chlor phenos,r-tr agg 6 cubic cy- tl--, 9Andesite vied-dk grn,blu-grn, Run in w/V(artp-Trak gry grn,9ry.mod hd-hd,fresh Nc surreys} app. micrdxln rtrx,conp•lY w V srtd ached phenoxsts,com R felas clests,rRtzasygds.P loc bract appr,tr-mnr a99 S pyr,abun Chlar.abs-r i? s,r.,,te,--tr spidots _ g 2S ao no losses i Basalt.dk gry,blk,v hc, fresh app.aphan txt,sbur IOC - a c v w e� s a w<a c - T In— 3 1 I 400 ,— silica fl:led vesicles,abs- mnr agg pyr,r-t, pyrohtite so 50 T Out — T.-- 1 xstls.abs-tr disee chlor, r-tr epldote,tr-pn- alivire -' 96 no losses l __ ! Basalt dk gry,blk,r ho, "asr •pp.aphe, txt.a:ur _ s=— silica filled vesicles.abs- -.�._� mnr agg pyr,r-tr pyrortite AES .._.- -- ff< L xstls,abs-tr disev chlor, r-tr epidote,tr-mnr olivine. r micas,tr-mnr magnetite. Andesite red -OK y-y/grn, r,pd �_tt losing 2C Brp hd, chl alt euned phenol in 102/ p6 J} microxln mtrx, m Mag in And g r tr atz amygds,tr tuff w/flow 7ZT_ appr w/And•Bslt ang clasts. tr Ep,Pryx.Py in tiff,r Dtz/ v I Chaicedory vug/ftt fill MOB 37 RPM Mu PP 200 SPM! 75 AES 100 '2 maim 109/1G iD9/1e 0 no losses 10 losses 112/1 , 1300' 0.20 deg N40W i J� ►rzp isCACM' T In— P9 T Out --- d P1 Andesitermed-dk gry/grn, mod hd, chl alt euhed phenos in miCroxln mtrx, m Mag In Ano, t^ otz aeygds,tr tuff w/flaw aopr w/And+Bslt ang ciasts. r-mnr Qtz/Chalcedony vug/fct fill,r-mnr agg pyr,abs-r pyrhtite, tr-mnr ep. mos -r sera alt..aos-tr clsaleopyr 'uff It-gry.v sft,pr corsol, flow/brecc text, sub•ang Andesite•Baselt ciasts,auhod Ep,Pyrx,Py,Qtz xtls,mnr hams vug fill,, chalced vug fill JHit fault zone !/1070' pt/1160'.Strongly gou;ec zone.evidence of shearing, incr in fracturing d vng Basalt 8 Andesite heavily chloritized and broken down into cls Basalt med-dk grn,blu-grn,v sft-frm, fri, microxln,hvly chloritized, prly vis relic txt, loo suer app intbdd w/ Andesite:blu-grn,v sft-fro, hvly chloritized,occ loc fresh,brecc,loc sheared vis euhed clr atz xtls. Dacite.lt pry-med gry,biu gry,hd,mod faisic.wi forest pnenos,v sl &It of folds, cam-abun amygod chalcedony i zeolite fill:lncr in ptz vng,com mag.tr-mnr ep_d. Rhycllte.gry,brick red,hd- v hd.perpny,ltic,coo-aoun mag.ccm-noun chalc fill Basalt sed-dk gry/grn, mod hd w/ aft Mht qtz/zedlite rolcment of Feld phenos.t^ i — 400 Cacite blu/grn w arc com !' 160 felsic vns. r concheldal chalcedony vug fill.mn- Ox 'rag xtls jr Basalt/Dacite dump 30 bbl Dumped 30 bbls and 85 bb:s 111/1 in sanotrap to clean pits. Basalt same test as above w/ mod cnlortzd and inc dump 85 bbl felsic vug fill,sl frctro w/qtz frac fill,slickens, wk ox hem,abs-r pyr,abs-r sera,abs-r cha:copyr,mnr epidote to rr .. s.rs flf (1 /r1E75 K7 a` :nd4+.Eel l�.iiC.i?Lr•iltre dlap.in t :eniced/t00 ftIl. par-tW s41e.00l-r vrr •r -.r' �. 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'yrs Stp .1e, -q p -lit Aria +Jt% Nto, al iR �IIt War. A hayrt trraistt is rp-rt.r..s•n Y !, r.worltt. to -W its or.po hi: a.dr to w r- It t,RA ..1 4 All, 0/46" "660 2- tti wn t 1.0 !yr Its trate.•-tr ct:t Yrl t td frga,t thlar,t-W' Nrtc. r-tr 0019 t-atr 1181 "Clay-Tjff wt q^r-rr aft..: rtradd .J.". t it. •at r f, r.aad etp-Ad.o^K re ,fl lntrAal ./r et/1 ?Of +rtereq.Cte re t tura to Vieillei4 Yr.o,r, rn.,Y t r, r,tr•arr so q -r tap cot t, WIMd ootd.teyn $l- ";1 7 w/AMtslt..+at- .It 'at.arn.Cruelt t••dgtM ./¢e•e# las •Y.le Ardis clots soul tta. tet Rhyallte :t-dk prTgrp,prfd It rn.Y in pr, Ad. tr -taun d1/Ng Np.t•anr qt2 vnq,l- 004 clic vnq 6 ayh r,apf. rel, -cog Mild qrs t chlor %It,.,-tr sari,,- told. ,rt^tad 0/0"Sitt -9 'ad cod hd.tcn sllcks,pred he. Atnd.lot :.tread ./O T3-zurr .,t .0lMt. art ,V,AII Mdoe r-tr . dale" V,, cps y frog Ash rldr TYff wrr :t pry oft.o• At<.av n: I Ott "led t ^efa Oasts,. Orr I. All'— egg I, &it - r111 gild T/StOc' o0c• :n gate-mgaat/3p6t at oil' wt ety-N Ritz IrA" at! t 1111 ^ttwrns POIK M/. 4A +/•o seta, Al- tot 'Saps "3 At 31r1a. t/ 123' ./Ttrt Aoat .232' i+ to dotte. W drill ,nit. itl-y- .err 1t-ae ra Ige.o'gg -lc alta A►t.Y It tout hrg,wy.lr:Aote tr sop, arr a" atll of tic tott-er' It? Yrq,it. Yn tilcwo d#lar.sbe, W. .R gad " a^ 1Ir na Ntl: 61,644, :t,l alttl J:1 1Yta{rp gills Ir n19. ,6111 At 1 'Voltz. dop-n,grr,I fn q - rd nand. P. .1 Ort 4t.oct 'Y.elr.t, _' I.", saq.^ nae. gpldtn easc.tr-anr dk a/twd tap s.Ogo f:il,r clr coa t ps 1^eqalsc rnq tr-sna iri, atgl.I- a ,ix �Ix.repr rlr tptd..nr-can rnq ctn r It prn, tl,a. IMpry-dad at rtllc tet. 'ecc app I., lOrlidd ./ '0. rad, and hd,atun ens/ Ilqut std f ill, t.trMe ./Ast pw Turr .nt, cr t. asn gte. iYn It -4k qrn '"A". -Mr Cnert Dtnk,lt qrn, aDh, bd. shardopp.r qti .m,... dlssen pr^ i9rOiit. ala+raa. Lt -at yet, mc. {r,M.trNe pprw,, alt me* J 0,0'cons At,ft ps AN.- tM tam assess saq,t+• OR •n0 tt711 3 3•Gri "i .vcaat,twv onlr -q ✓(at aM tr•10, Nit "W., %1r.eYRf7 .eel tial tsttF ,lnt„Md . Aaf-'9” a.:-{ •'3i .M St yn,py.sft l-Am.satt spur+ . e+r+ss-sit Ansss :•.:nq . to, m" Ire#.r alts" nq - it: "70'd YJAnasstte'red.In t:l aweaa ^nsss t.l■t qr. rcd na.Y.ty.ar It I s•.. ftp car: PHm !SC :cs:-{ 7C ca^ asp/e iM•ttyai Ikl? Y.S ({ .e■+t-y Kr" fta^ to vis 7• ,mry Perron■ No test att• •A, gigr 4 m iasr: rq toale. raeNan Mt9s7lea-lt-as gry.q•e-aa '25F P.'aM .1+ Wa DOW. u: G Ole to .atl"e ^aq S^F p:^ ena 0•til r In p.ta-sa,•r-i+s 0- ,.nico kp.M1tt..ct, ve..: an.a:" alta aaN:r.LaY sai.rrm-•Co. PnyolmtsPraa Alta ln390' D9l _ Yet.r It prn,.On.tr-w cra JD Py- — ,, +o s Or Or Dta app, a/L-/lre, •sey, Lr9ra iy .IOc ■hYn YPC•ak qrn .af MOO SAO aeyp flli.tr Cl- sAad :alar lot. Par::. t+ K3:. t" IT ctsl9. al to Ole, ./aii'm S,e t cta rnq,Dv-es. :,1, m0 t sa.^{ i•y ap eY^ talc .tela., aaaas Op. 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L' sC: a.R^- .eel en .:t +Jdrp'^s•Y/"site :•.:nq . to, Cltatn py,r Ora, apr, "70'd YJAnasstte'red.In qr. rcd na.Y.ty.ar It *'.try N n p;lrpe oniln• 0111' 'aC 9Pi %Leta 00qP t frae Nnd i 32 .9.� el•M to pYDD L 1111 Mt9s7lea-lt-as gry.q•e-aa ps,ert,pr.a r -sal an oro. r In p.ta-sa,•r-i+s 0- :ts:-0 •Y. kp.M1tt..ct, ve..: an.a:" alta aaN:r.LaY sai.rrm-•Co. e.rL L> N•tt ft spas Its,t .z"It pr ns!. -tap "lt 62r, rq,r•tr glow Pr+.v- dog 2 a4 MG ; :alar lot. Par::. t+ K3:. t" ataf M- :Lay.tr t+QiA Luff 1t try 1 •so. In t*e-t gry :--. " ,ln-r• •• ros,-e •. . tr375 1 vara::4 1: •at arr.Pn•u i Sa a•q � grn,t r^ ar.a trran app pnc Atte. , in sr,,,P, arlat.q to las grn.Y y. .DDC t, li ea old I,— NO. W -"bun it■CL SO, jean m agg0.1atrw ./Asn-vlaY 'Y/t-lt py.lt grn.11 9int.sft.cruPplYpnr leaing •bDh Luart qry purp,aplcr 9a./t.r-■nr wn Z,1/t gyp.at saNJ•tals eA:o 7 f0 mws2 ,^m ftt res V. iaf H w 261 ill• ).y)• WC "SJf-. fete• Y+ uy I .70 n!I aiS SM 27Y Raw 60 n Mn vw ►0no M �n,zv •rrr!n. ^I-ivrrh srexr raft»:, I S[OM yaa•a: a:: .AI aan v•v Clrc We- 6470' m ..,qctr Pool .tvict, isa•9U to•facte allow to ? 5 '.stn 1.4 lit ow *to" los and *,,.I ►+Isco 1. r:.•.:- ep ld,tr-.Ar clot 12 72 ••2 lntrbfd dAsh-clef 7.If It 6608 olY dk yrA.y►rA.artt -.t t.•y -Y' aM 1 fresh bss.p^pp ff -a-M,Y -.up LQ illi site •aw,o) MAA l nn. tG —A-1 /"-..res !:—fell 10 tcf-a:dr t7tc aK.wn+-ca sac m ..,qctr Pool .tvict, i .p..r, Ot! .eq.tr-anr Glc ." 1. r:.•.:- ep ld,tr-.Ar clot lntrbfd dAsh-clef 7.If It 6608 /•i.it a" it wng.aft. 2 n ares crt�ll, tr-fAr fray. of 32W j Ah, lite Md anoftttt rff.!n !` he pr,aod e-v nd.oritt ( Rh,.J[tt It-dk p -,.pro -ds /^r, br-.rta•trtd aies a0C lulu/ -4 stnI rod r fn /r,r.d oft wl':e •w•r C—tly.[ner valine aIt- :o- np alto. r-tr ok 67"2 a-lai.r•M .At Ota M/.IeL 2 92 co2 --Coll cir/afhaa Ott, r cos: ry-•�S!OI yqd aw clay. lK int^aaf LI—.4 sat .sra� wladl-slo ,.1.,f,% -It 0" It boat :• .:to ►ny.33 it and anoss:tt c.et, osr tato lostry -1S at q -r s+r.•at. a•ttl alta ow GIST c'e2 + to yr.trN Oft. 3tA ••9 c-Yfa'.y.m- V*111e sit - Trp 10 sO1. I cof cis -0".90 0400 OW rata as pro At Otpp r_tr kI>t a.aSl"j► es:a 0". tib i i ►N tvc ... i t.lit off. OWNny ��/ lMl ,•100 T 347fish in belt all, with fleh/n/ to .titriaro flab / Rl. { ,tae/clesn out wall wlti jttl gI ft I'•ff'nVl--A��n tip. 116074 .0r;i1 Mood e Rh,.i1G.W. alto f/5470" +nt.lt/rn.way.tef r ".Dery clay the of ./clay Otto fey lit- fipo re !eidt,abne it /r. cc. 1•a:r/ "� t/n a*yf•. m G/c ..p,r atoll- i.,it O:t whl.. pyr. ara-C clan. pr'atl fres- • too, ,ism' iry.f. Ory.. fn p-rsfc is..,- a m "So Q'2 any, i'tr:r. -/pth••lef i 't .e• Ttir! ris. •et Ovft,•. yrr Vssl :+T C.• t• cid, alto q:^:. fJ!6 We,?= ..c aa.:?yy lith !ray► at-, eta Olt^. q0 If. 6c Rn,tatt it,.- dry ytalcarJalc M I a::d -/doyen 9/502r//pt,ayy tri pit a!t« eft.yry,yr, ducky. wn i f+t t• r I:th sop -•ofd froya co. M/ aMLL ci•soe ally. -.n col {neo atr lost-/ ..t ■nr bn acpr.Glcsr/bic t:tc •'l, fnt.f•ry.a-e•ph.art-- no. I � relt< Orph tact. eccoe err ulGr, tr ur alt -abs aq.ca lj rat app, ./too aatr,:.r lutes -t tq- Ott .n { C11 -oft ..,ad tr-fnr 7'111' Gic vn.r eueof pyr-c" astoc l/ ata W lc .tntradtl ./.,saw dG.,I-t,600739- air t,If fht-It prI pnt,itt ios1A/ " ...Sao spar f/yr 2•d f:l: wilt t nlri wM nftA't LGQ sm," '-fol [oun/ - Or *-two C.ff press) f•-rr y.^. t2. nes a its r.;: ttr •#"it: Int W SIP tnlrf - os^ .lit f► to aha fnt.It V. e f!t•!ir.. si stcbr.lac Wood O wary-Ja►f.f nes fill.,-tr ln:•a .'►' cp• dot vay, n -et■ Gle res ftplr ;,art .,,� d: s•r pyr•-tr M3Ytn [d_tr-dao- tier c .www ".lite vy.tos na-rs r- -� /rn.cK res r;:l. ear { .o.lnq ban rtf., s1Cn eksbt ^ir ra rub.h is cc•-os„n disder nes. Iu.c s.ea► I.. and atr-..tr •rpllllc !R nitre to 401 It a,,., aft a brllt.co. dibtp me tr losM/ - 'apo Cnl t he. alto,, apit.•nr IYao rndd•ang Lith clost.r-t- 4 vn/ let bra. Ohl. t- Glc vy pot .JaniC 40es aY.r 11 slue -s en n.arit Q�y 4.3. 3 .0 d.p S7. Ia1:•v -t5�tr YOtin rY.Nd be -n-. to n.lOc Cry prn/.IP 11K'r C'Y MPt..tM m etII.:M Eft ISP sit, blas.PEW+ pit. p,aaat, tfpi 111C Vitt 3mIt p -r . ot.M tib Op. t• c+: t `w t• Ott ^It --r :..- .-s t ./h• Or 10.11. r, Ott n-.-ni. W. 1 rn1.1- c -t r t•xr, f! ttt• cw tie •sll .w c•I n1. •I" Dlwt.tasP• Ottw q.ltt It- Vol at a:t. ts b it pry, Ott .cw uss" p.tr "1 l fse Ott s,r telt •wp.r OY.• .nytl tr•.f GnlOftid Nt::{,r 11 wypp.r f /en slnt Y. n -de pry. prn. Na s t.o. cnl.rttw,fw bibs, n aiuw Np. r•tr qtr, tr e.ie rnp/ up!/rplew.nt. ..1»d Ott rnp.lac Mp •Iia 511 It p^y.r 1tt.stiuy. a:uw wp.• 1np i::• wt.r pP.1 t •roy RCi:ce It -al pry,. Otte inI N1.Ow M-wO.0^1 /1ln,w tM w MlWst^ wfa n1... ebr t»w N; gnYd.• rrN- pppl�s.lC— f p t1 is m ittry IS ; N.r t•t .:tclr :w tw no :.. w n- na:! to riot 7^:Iu ibR pry p•n..cs tl.r00tH rltl f,Ow r -nn Dr,10J10 1iMef qp t•'.w n t tura to nit.sr-co. YIlt. er-w fw ilt.r Orn M cnl ne•.rtr tunes I- r Ott "II lune- pilaw p It tfn t- fsi It pr/.prn !.r Ylt.t^tMi7. Ntt 01.01 / :a ..1• sten, CM-.0n1t Dw N0 r•tr •Dtd,lnr p. w t t.n tet •tit • •rs- p :1tn !•qt inyalitt It -et pry ,prn,.od N.rn-. cr{ Orhln.-M Ir Nn IPPr.aNM tial! e.p.r inr trn t.. Ii:1.M-wr qtt rrp, uN{ w/.Md Ott atL.Itf :tlr.tr-wn. let Ml 11t.r cn! 1. M! .1t.r_tr ..b.a prclrr Nt It, to 601 It tirl.srn . ttt. clall Mtt .","I 01.01 :w dilttt Np, t• "If r 0fp. LvE •.N lit. "I r-pt.v I.t t{.ictent3.n .1" Of 0, :t 4t r :t rr-cl—O-OI-. I -o -t :L'R ry rh: .0 a . r. -•w Or '0" ey.• esP• u_-: 0:114p! !es-sw r• :a et': vfp R:: f rri]ws gym+-' Oy.I:c. w•r W; 1'Itc rl 1350.8/10 t. Mclaw It prn. It Ort..Olt r 1.t.c, tty.Mtt. Vat Mt Otnp.pfr•ulur sIa•Sta pr {.cw tits. flp, -Ir .iia •..pa.r .np-..e -nda I:tn Ony Ir•p1 Ot q'y Irn.Nttlta •ppr.na. to p -.tar 'r N. tpP^.lOufC a111M Np, :M-IOun rn tw rtll.r Ott rnp,r !w talc. w•tw tet ilt,f •tr wMa alp-eM�uan vw. al t.r-t- .row 9tMa - i:Il- .tt 1. 4" 1rt'dl• alrel,e 20K tlJN 0 +9. so 69"" Is 9!741 In UP* S 0„r.µ aw_ tit, (Fred 1/470' t/6969 7. ter 1.•n � ;ost nep■ir r all +npr•tr telt .ng.tr >'-p -a r.' saki►• a,d p.^•o'd 900 tNt a, tr/tg Olx ►nt 1 '� s'ilL Mtad excel,¢ Mops) f creng.s 1 jailry •to ►C- n far cs-accts .. 401117. Orr g -r n0 treat xn tM- deer ./diet, t -417W GW N:y lit. nn.. to fas, r -Sr !!0920 t twrn 41rn l 1j1wl(O.ryatt+), t • .. -M Kt Y- a adrgo. tr dots �Bit to 7al•S-•.r Sfasw ,tee I la• dryllino p-eeN .19-110d Chi-oltd RAy elects ICS,'G � E44yolitd gry ¢r..frw over .l to pr(elsyt)¢rY. tan Olio Ma sora Id: sale sit.. a, load Ay -IV./... •c's ¢..Irl •tC.•. to clr/trMs:+.ani !cc tell t t IIOx O.n sam rnit.abas d asa0 altM COMA N colfle. s ser . id .•tr My(cripry ), Inar tr rel-qrr go, +e-Oaa sit. tit" M ism' °"9' h {sa• Ns 011ie *It --t. i/9gg' cr xp to 66'Jer, 1 `AasxO,octas a/Or- tN ct+y Er c•lJsdO ■ircita.v•ar^ es:: laic Olt t/rr T%sal-lra,l. lw:y .•op ort sit .+ lny .- Ory,r eta far yJ41 es ►w Im I � Myal :il r ;t ¢tr-grr,.r /t IFa_^p Lill We'! I—, t- ' ,f x � w ll.er..:.a•a a lNih `d0 co-aM Me all, .D: [ND frys.lN ay,,- +•►y ata. t• rol i7 aiad0a ..rear .7., 4 t- Mesa• ON ti -tor ¢gM -it a 69cr ./dept") .et V- Yy ;nP•uu w I sec -NN ..t pt "",Sit r stake, Ny prnwre tl<c'wt: rs i aW t0 a'r.t e■> :-. *Pit 1 -0411 r -i% olx. .ley nu 141►O Rhycltt. Orr. gr,-ok Vr ' di Ne. ,►O - Be air N -D ra/st • -v 'TS ton r kkao gr, orad D'itc.tse u .r t Ott •/ le wt•r cr.bit tr-anr 1•o.!r gyri CPe ■Ill. alto, tr-ear nM C tt1Ma► Oita Ilw f. ttl .r r -t- ..it . r hes" ¢yt-- tit, (Fred 1/470' t/6969 7. j r all +npr•tr telt .ng.tr f cnlor,tr-anr y.l elntn told 1 Ii i g t0,d rrsq.. tr-■bvn tt.r ■a f creng.s 1 jailry •to ►C- 19L- •/"pit t/roll at 6970' xn tM- deer ./diet, t -417W rllLnq CrOks of 4 to !!0920 t :M4, Cl 1947' notal tet r It ¢rt.41re,e tn- .19-110d Chi-oltd RAy elects pra er.pras nO. Mttt.tr-ca, ,l -h IA ¢rn t.a.r tyys-too Oifs- i•so.r c►1/269 siickens.an•- .l to pr(elsyt)¢rY. tan Olio Ma sora Id: sale sit.. a, to clr/trMs:+.ani !cc tell mtn- ./ con .p rd.us ■tlD M. alto. a■c- s wld -its s ser . id .•tr My(cripry ), Inar tr rel-qrr •¢ •7c No 1d •Mp(69tsrldMy lltl) ft - 11 to) cloy sit. to i/9gg' cr xp to 66'Jer, .(m, an d. qrn a ft" torp s -lilt" Masks a+ as -4ms eta far yJ41 es ►w Im ;!lOtlb � Myal :il r ;t ¢tr-grr,.r /t F :s�-1' ac+ ,..es D"s-Yn.Y rn-cM or.M'a0 nd ,f x � er:tt,tr-et- 9 V. M.tr' 7� Book silts alte abr a/41sytr 1st 69ra Na alts t-s41l.nr i s Mesa• ON ti -tor ¢gM -it a . slaw/etels t -an-• all ".r We . l.r +:safe at, tr-anr t<larr-tr rl.%SrtM t. *Pit 1 -0411 r -i% olx. .ley nu s?t. ..t. it 41ry. 1! gr..Nt T. di Ne. ,►O - Be air N -D ( .lollop Mese ar S7 %-• u .r t Ott •/ le wt•r fa[tts + a 0•r . tx pr-. , tan de g-• rte l►y¢d a flags y r ■=++led Stat PM otsN Np e• tt1Ma► Oita Ilw f. ttl .r r -t- ..it . r hes" ¢yt-- wl.e P.:r 1 <,. yds/oro said it, . r sort f I.y Iv, .err 1 .tl CM M de ¢M too /lick i0/el 1 jailry •to ►C- •-t- C-1/244 sl ick.,- tl.t sitn to As .At. H Sly.. aft. Iiµy Nn •lire alto t• Oca ct'/t•melk,lnerpde aratcu .19-110d Chi-oltd RAy elects V .l to pr(elsyt)¢rY. tan Olio 1 I aoaing -85 tan mtn- ./ con .p rd.us ■tlD E �niLnq .reeks (1947• i/9gg' cr xp to 66'Jer, I, - 20' t 2r' to Sa /nr . 1 crystalllM <Il tan,Mn.gry- ;!lOtlb Ica: -c is stl, I -t nd k.ltt,• ., -:. o-_r..r 7£ EMEM impel two +r A nlcrg.in/plus ].pini X/en �Y' ZZt!t.r ata•tn py,tntrbdd ./Lithe[ Braccl. prn,pry. Dnk impel two +r n.p.,apn.n-rn p-,.bu^ ellen. nlcrg.in/plus ].pini X/en ZZt!t.r ata•tn py,tntrbdd ./Lithe[ Braccl. prn,pry. Dnk ..q -sae rode any Owe le fn bon or a1.ic ketr1. w/evid.pr.seg (Roy re-rrkn{er.'a•j.tr o" -ta b qty --t, t.le roar Nhu I w 1 coon' ep:a. r Gyps,' blk s"N A, � + �" pro s•o.r-tr col/ue/ott tStckm,r p»mete Dlkf:pnk, ere gr,tr .ap,eph.l or.... .ck.d err aurins tn..% 4.e -aa b+ 9566' S..•P roan. aril! jmna lihyeiitr c it pro-prn,.tnv .. fn -M pr,nd•r he brftt,te.- prad silk alto, L-0 at err. ..o,intrbdd ./Lithic Braccf. 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CONFIDENTIAL Naknek Electric Association Geothermal Well: Naknek-G#1 Report: Shallow Gas Hazard Assessment for Depth <2,000 ft Introduction This report will address the geology associated with determining the shallow gas hazard at depths of less than 2,000 feet in applying for the necessary permits to drill the exploratory geothermal well Naknek-G#1. All data used in this report for the determination of the potential hazard has been obtained from publicly available sources e.g. United States Geologic Service (USGS), Alaska Division of Natural Resources (ADNR), Alaska Division of Geological & Geophysical Surveys, Alaska Oil & Gas Conservation Commission (AOGCC). Location, Access The proposed geothermal well Naknek-G#1 is located 5.3 miles northeast of King Salmon in section 14; Township 17S, Range 44W, Seward Meridian, Alaska Peninsula. It is accessible over the current main road and 1.9 miles of new road to provide access to the well site, a distance of 7.2 miles from King Salmon. Naknek-G#1 Well Geology Based upon the outcrop geology in the local area around the proposed well the following geology is expected to be encountered above 2,000ft: Quaternary Nushagak Formation Glacial drift deposits 400-7511 1't thick Tertiary Meshik Formation 5641 1't thick Volcanic rocks, sandstones volcanic breccias, Andesitic-basaltic extrusive volcanics, or Local silst. and shale. The thicknesses of the sequences outlined above are based upon work carried out by the USGS and State of Alaska DNR. This work is referenced in a number of published reports and was compiled from field observations and from well data collected from oil and gas exploration wells across the Alaska Peninsula. Of note are: Marlow et al, 1980; Riehle et al, 1985; Detterman, 1990; Detterman et al, 1996; Haga et al 2005; Decker et al, 2008. In assessing the shallow gas hazard the well data and mud log data for the three nearest deep wells was assessed: General - Great Basin #1, General - Great Basin #2, Amoco - 11401 Olive Lane, Anchorage, Alaska 99515 Phone: (907) 522-4664 Fax: (907) 349-3557 Becharof State #1. A consideration was given to using Wide Bay Unit #1 as a point of correlation. However, this well lies to the east of the Bruin Bay fault in a separate terrain and negates it use as a correlative well. Nushagak Formation —Pleistocene — Brooks Lake Drift Outwash deposits of sands and gravels are mixed in with till and stratified ice -contact deposits with a matrix of silty sand comprising about 50% of the deposit (Detterman et al 1987). The depth of glacial drift material overlying bedrock has been given a range of depth of between 400 ft and 750ft based upon three lines of evidence: • Within 2,300 ft of the proposed site for Nanek-G#l, a groundwater monitoring well was drilled to a depth of 400 ft, the limit of the drill machine used. At that depth it had not encountered bedrock. No gas was reported from the well. • Ground magnetic surveys carried out by Alaska Earth Sciences in 2009 modeled the depth to contact of the volcanic rocks. Adjacent to the drill site the modeling revealed a depth of approximately 225 m or 778 ft (Figure 2) • Geologic mapping by the USGS (Detterman et al 1987) Both pieces of evidence when combined with aeromagnetic data indicate a palaeo-surface channel up to 300ft deep that coincides with a projected fault splay from the Lake Clark fault (Figure 3). Meshik Formation Below the Nushagak Formation glacial drift the well is expected to encounter Oligocene Meshik Formation extrusive andesite-basalt volcanic flows, breccias and related volcanoclastic tuffs, and potential occurrences of siltstone and shale. The Becharof State #1 well encountered 1,543 ft of Meshik Formation, interpreted as Stepovak or Tolstoi Formation by other authors. The Ugashik #1 well encountered a thicker section of 5,491 ft of Meshik Formation. The most complete stratigraphic section of the Meshik Formation was encountered in the Gulf - Port Heiden Unit #1 well which drilled to a total depth of 15,015ft. A total depth of 5,629 ft of Meshik Formation was interpreted from the well logs (Detterman, 1990), and biostratigraphic correlation (Raga et al 2005). The formation is composed volcanic rocks consisting mainly of tuffs with volcanic breccia and flows. Detterman (1990) stated that "These volcanic derived deposits cannot be considered a source of or a potential reservoir for petroleum." The expectation of encountering the Meshik Formation at the glacial drift - bedrock contact is based upon the following lines of evidence: • Locally mapped and sampled outcrop geology around Naknek Lake (DNR -DOG: Alaska Peninsula Oil & Gas Resource Series plate 6 of 19, 2004). • One of three water monitoring wells drilled in 2007 for NEA in the vicinity of the proposed Naknek-G#1 site encountered bedrock at the bottom of the hole. A core sample analyzed by an ADGGS geologist interpreted the rock to he a splatter deposit of basal tic-andesi te of the Meshik Formation. Summary of Data Available Water Wells & Monitor Wells • Wells drilled in 2007 — 3 wells drilled for water monitoring for NEA. Reported by HDR (2007) — Boreholes reached depths: #1 — 395 ft, #2 — 255ft, #3 — 400ft. — Only bedrock contact #2 @ 255ft - reported as Meshik Volcanics "spatter deposits" by ADGGS geologist Jim Clough — consistent with mafic volcanics observed within the Meshik Formation. — Bore holes #1 & #3 did not encounter bedrock — was the "bedrock" at 255 ft a boulder only. • Water Well Drillers Logs — 4 township area of drillers logs around the proposed G#1 site reviewed — Deepest well King Salmon #1 to 240 ft — All local wells encountered only unconsolidated material sands & gravels with occasional silts and ashy clay layers (water -lain volcanic ash) — No bedrock encountered — No gas or hydrocarbons reported — all water described as clear & potable — Maximum flow rate noted as 150gpm for 24 hours. Oil & Gas Exploration Wells • Becharof #1 — First gas recorded at 740 ft @ +/- 0.0 1 % discontinuous stream — No continuous gas recorded — Unconsolidated sands & gravels to >1,000ft — First coal -lignite @ 2260-2410 ft — First clays 2590 ft — Significant Formation tests: • DST 10: 10MCFD @ 14psig, depth 6,640-6,655 ft • DST 8: 50MCFD @ 10-50 psig, depth 6,860-6,960ft • DST 5: 30MCFD @ 30 psig, depth 7,470-7,550ft • Great Basin #1 — Unconsolidated material to >1,000ft dominated by sand & gravels w/ pebbles intrusive material — Trace wood @ 200 ft; Wood — coal @ 2,200ft — Trace gas @ 1,320 ft — First clay @ 1,325 ft • Great Basin #2 — Above 1,000ft rounded glacial gravels; mostly unconsolidated — First clay @ 285 ft — ashy clay — likely volcanic ash bed; next clay @ 775- 800 ft — Coal -lignite beds @ 2,475 ft — First gas — trace @ 1,375 ft Literature Review • Riehle et all 1994— USGS Circular 1106 — Nankek Lake is damned by moraines — Outcrops of Palaeozoic gneiss — No recognized natural resource potential • Waythomas, 1994 — USGS OFR 94-323 — study notes thick glacial cover — Bedrock geology noted as outcrops Northwest of Naknek Lake of basalt plugs, domes, dikes and lava (lows with lava and breccias of daeite- andesite composition — consistent with descriptions of Meshik Volcanics — South of Naknek Lake — bedrock outcrops of lava flows, breccias, lahars with volcanoclastic sediments. — Water wells drilled to 215 ft feet did not hit bedrock — No gas or hydrocarbons reported in water quality data • Detterman, 1990 — USGS OFR 90-279 — Descriptions of Great Basin #1 Geology describes 3.50ft unconsolidated glacial drift. — No hydrocarbons observed in cuttings from near surface <2,000ft • Blodgett & Clautice, 2005 — PIR 2005-006 — Comment in the Abstract states "unfortunately all of these wells produced only traces of hydrocarbons ... Mesozoic strata ... did not prove to be economical" — Stated that "All oil and gas seeps attributed to Kialagrik, Shelikof and Naknek Formations" • National Parks Service 1994 — Resource Management Plan — Katmai National Park and Preserve — States that Naknek Lake is up to 530 ft deep. — No reported hydrocarbon seepage into the lake. �0 ALASKA EARTH SCIENCES, INC. Naknek Electric Association COI�F��ENTIQ� Geothermal Well: Naknek-G#1 Expected Well Geology Introduction This report will address the geology expected to be encountered in the drilling of exploratory geothennal well Naknek-G#1. All data used in the compilation of this report for the has been obtained from publicly available sources e.g. United States Geologic Service (USGS), Alaska Department of Natural Resources (ADNR), Alaska Division of Geological & Geophysical Services (ADGGS), Alaska Oil & Gas Conservation Commission (AOGCC) and Alaska Division of Oil and Gas (ADOG). Location, Access The proposed geothermal well Naknek-G#1 is located 5.3 miles northeast of King Salmon in section 14 (E �/2 SW 1/4 ) and section 23 ( NE '/4 NW 1/4 ); Township 17S, Range 44W, Seward Meridian, Alaska Peninsula. It is accessible over the current main road and 1.9 miles of new road to provide access to the well site, a distance of 7.2 miles from King Salmon. Regional Geology The proposed geothermal well Naknek-G#1 lies on the north-east end of the Alaska Peninsula. Several tectonic elements are present in this portion of the peninsula that forms the basis of the geologic framework. Two major northeast -trending and bounding fault zones are present: the Bruin Bay Fault system along the crest of the Aleutian Range to the southeast and the Lake Clark Fault system to the northwest. The Lake Clark is a graben -like extensional structure which has documented vertical of approximately 3000 feet and up to 16 miles of right -lateral displacement. The Bruin Bay has had up to 2 miles reverse (up -to -northwest) and 12 miles of left -lateral displacement. The Bruin Bay Fault is a major thrust fault that dips to the northwest. It can be mapped for over 300 miles from near Anchorage to the south shore of Becharof Lake. The fault parallels the Alaska Peninsula and divides it into two distinct geologic terrains. The two sub-terranes of the Alaska Peninsula terrane are characterized by radically different structural and metamorphic styles. The rocks of the Iliamna sub -terrane, which lie west of the Bruin Bay Fault, are characterized by metamorphism up to amphibolite-facies grade and intense folding. West of the fault there are metamorphic and volcanic rocks of Triassic and Early Jurassic age that are intruded by the Aleutian Range Batholith of Jurassic age and small stocks of Tertiary age. These rocks are locally overlain by non - marine Tertiary clastic rocks. East of the faults is a sedimentary province containing Late Jurassic and Cretaceous marine clastic rocks with abundant fossils and few small areas of non -marine Tertiary clastic rocks. This area also contains all the Quaternary and Recent volcanoes. The geothermal province associated with Katmai is east of the Bruin Bay Fault. Note that the study area is located west of the main fault. However, several 11401 Olive Lane, Anchorage, Alaska 99515 Phone: (907).122-4664 Fax: (907) 349-3557 significant volcanoes are located east of the Bruin Bay Fault. These include all of the volcanoes in Katmai National Park and Preserve, except for the Augustine volcano which is north of the park. Naknek-G#1 Well Geology Based upon the outcrop geology in the local area around the proposed well the following geology is expected to be encountered: Quaternary Nushagak Formation 400-750 ft thick Glacial drift deposits Tertiary Meshik Formation 5629 ft thick Volcanic rocks, sandstones volcanic breccias, Andesi tic- basaltic extrusive volcanics, or Local silst. and shale. Lower Jurassic Talkeetna Formation 1341 ft thick Pre Jurassic -Triassic Basement to T.D. - 12,OOOft Intrusive rocks, metamorphic rocks folded and faulted The thicknesses of the sequences outlined above are based upon work carried out by the USGS, ADGGS, ADNR and ADOG. This work is referenced in a number of published reports and was compiled from field observations and from well data collected from oil and gas exploration wells across the Alaska Peninsula. Of note are: Marlow et al, 1980; Riehle et al, 1985; Detterman, 1990; Detterman et al, 1996; Haga et a12005; Decker et al, 2008. In assessing the shallow gas hazard the well data and mud log data for the three nearest deep wells was assessed: General - Great Basin #l, General - Great Basin #2. Amoco - Becharof State #1. A consideration was given to using Wide Bay Unit #1 as a point of correlation. However, this well lies to the east of the Bruin Bay fault in a separate terrain and negates it use as a correlative well. Nushagak Formation -Pleistocene - Brooks Lake Drift Outwash deposits of sands and gravels are mixed in with till and stratified ice -contact deposits with a matrix of silty sand comprising about 50% of the deposit (Detterman et al 1987). The depth of glacial drift material overlying bedrock has been given a range of depth of between 400 ft and 750ft based upon the following lines of evidence: • Within 2,300 ft of the proposed site for Nanek-G#l, a groundwater monitoring well was drilled to a depth of 400 ft, the limit of the drill machine used. At that depth it had not encountered bedrock. No gas was reported from the well. • Ground magnetic surveys carried out by Alaska Earth Sciences in 2009 modeled the depth to contact of the volcanic rocks. Adjacent to the drill site the modeling revealed a depth of approximately 225 m or 778 ft (Figure 2) • Geologic mapping by the USGS (Detterman et al 1987) • Water wells and water monitoring wells drilled in the King Salmon area, to a maximum of depth of 400 ft, have only encountered bedrock in one hole at 245 ft. This evidence when combined with aeromagnetic and gravity data indicate a palaeo- surface channel up to 300ft deep that coincides with a projected fault splay of the Lake Clark fault. Meshik Formation Below the Nushagak Formation glacial drift the well is expected to encounter Oligocene Meshik Formation extrusive andesite-basalt volcanic flows, breccias and related volcanoclastic tuffs, and potential occurrences of siltstone and shale. The Becharof State #1 well encountered 1,543 ft of Meshik Formation, interpreted as Stepovak or Tolstoi Formation by other authors. The Ugashik #1 well encountered a thicker section of 5,491 ft of Meshik Formation. The most complete stratigraphic section of the Meshik Formation was encountered in the Gulf - Port Heiden Unit #1 well which drilled to a total depth of 15,015ft. A total depth of 5,629 ft of Meshik Formation was interpreted from the well logs (Detterman, 1990), and biostratigraphic correlation (Haga et al 2005). The formation is composed volcanic rocks consisting mainly of tuffs with volcanic breccia and flows. Detterman (1990) stated that "These volcanic derived deposits cannot be considered a source of or a potential reservoir for petroleum." The expectation of encountering the Meshik Formation at the glacial drift - bedrock contact is based upon the following lines of evidence: • Locally mapped and sampled outcrop geology around Naknek Lake (DNR -DOG: Alaska Peninsula Oil & Gas Resource Series plate 6 of 19, 2004). • One of three water monitoring wells drilled in 2007 for NEA in the vicinity of the proposed Naknek-G#1 site encountered bedrock at the bottom of the hole. A core sample analyzed by an ADGGS geologist interpreted the rock to be a splatter deposit of basal tic-andesite of the Meshik Formation. Talkeetna Formation The Talkeetna Formation is an early Jurassic package of volcanic and sedimentary rocks and has been recognized as an important marker horizon in southern Alaska (Detterman et al, 1996). West of the Bruin Bay fault the Talkeetna Formation is described as a volcanic unit with volcanic conglomerate and sandstone. Fossils described in the formation consist mainly of ammonites Arnioceras, Psiloceras, Discamphicerm and W aehneroceras. The thickness of the sequence expected to occur has been calculated from the type sequence observed in well data, and from corresponding correlations. The thickness used here has been taken from Detterman et al (1985) of 1,341 ft. The evidence for encountering Talkeetna Formation rocks in Naknek-G#1 are as follows: • Outcrops of Talkeetna Formation rocks in the vicinity of Naknek Lake lying in unconformable contact with Meshik Formation rocks. Basement Rocks The basement rocks are expected to be encountered at a maximum depth of 7,72011. This is based on the maximum thickness of each geologic formation to be encountered. There is no drilling in the vicinity of the Naknek-G#1 well that has a significant interval of basement rocks. The rocks are expected to be metamorphosed sedimentary rocks and pre - Cretaceous intrusive rocks. The possibility of encountering Tertiary intrusions cannot be excluded. Outcrop to the south-east of the proposed well is mapped as the Kakhonak Complex - Late Jurassic to Permian age. Riehle et al 1985 describe the Kakhonak complex as being composed of "locally foliated or banded quartzite, schist, amphibolite, and garnet bearing gneiss indicative of amphibolite facies metamorphism." Petroleum Potential None of the formations listed above have been described in the literature as being suitable for either reservoir or source rocks for petroleum. Well logs reviewed have no indicated significant petroleum encounter that created an oil flow situation to occur. This statement above is based upon: • Review of mud -logs for the General — Great Basin #1 well, General — Great Basin # 2 well; Amoco — Becharof State #1 well and the General — Ugashik #1 well. Literature review of the petroleum potential of the Alaska Peninsula and Bristol Bay region area as defined in the Alaska Peninsula Areawide Oil and Gas Lease Sale References Alaska Peninsula Areawide Oil and Gas Sale Lease Sale. Information and Data Compilation Packet, Updated March 2007: State of Alaska, Department of Natural resources. Division of Oil and Gas. Decker, P.L., Reifenstuhl, A.E., and Gillis, R.J., 2008, Structural linkage of major tectonic elements in the Ugashik-Becharof Lakes region, northeastern Alaska Peninsula, in Reifenstuhl. R.R., and Decker. P.L., eds., Bristol Bay -Alaska Peninsula region. overview of 2004-2007 geologic research: Alaska Division of Geological & Geophysical Surveys Report of Investigation 2008-1 F, p. 85-103, 1 sheet. Detterman, R.L., Miller, J.W., and Case, J.E., 1985, Megafossil locality map, checklists, and pre -Quaternary stratigraphic sections of Ugashik, Bristol Bay, and part of Karluk quadrangles, Alaska: U.S. Geological Survey Miscellaneous Field Studies 1539-B, 3 sheets, scale 1:250,000. Detterman, R.L., Wilson, F.H., Yount, M.E., and Miller, T.P., 1987, Quaternary geologic map of the Ugashik, Bristol Bay, and western part of Karluk quadrangles, Alaska: U.S. Geological Survey Miscellaneous Investigations 1801, 1 sheet, scale 1:250,000. Detterman, R.L., 1990, Stratigraphic correlation and interpretation of exploratory wells, Alaska Peninsula: U.S. Geological Survey Open -File Report 90-279, 51 p. Detterman, R.L., Case, J.E., Miller, J.W., Wilson, F.H., and Yount. M.E., 1996, Stratigraphic framework of the Alaska Peninsula: U.S. Geological Survey Bulletin 1969- A, 74 p. Haga H., Mickey M.B., Boettcher R.S., Kling S.A., 2005, Northwestern Alaska Peninsula 1 Bristol Bay Biostratigraphy Study, North Aleutian Basin, Bering Sea, Alaska: Micropaleo Consultants for Alaska Department of Natural Resources, Division of Oil and Gas 25-104, 282 p. Marlow, M.S., McLean, Hugh, Cooper, A.K., Vallier, T.L., Gardner, J.V., McMullin, Robert, and Lynch, M.B., 1980, A preliminary summary of regional geology, petroleum potential, environmental geology, and technology for exploration and development for proposed OCS lease sale No. 7.5, northern Aleutian Shelf, Bering Sea, Alaska: U.S. Geological Survey Open -File Report 80-653, 54 p. Reifenstuhl, R.R., and Decker, P.L., eds., 2008, Bristol Bay -Alaska Peninsula region, overview of 2004-2007 geologic research: Alaska Division of Geological & Geophysical Surveys Report of Investigation 2008-1 v. 1.0.1, 223 p., 3 sheets, scale 1:500,000. Riehle, J.R., Bailey, E.A., Church, S.E., and Yount, M.E., 1989. Sample locality maps, analytical data. and statistical summary of analyses of rock samples from the Mount Katmai Quadrangle and adjacent portions of the Naknek and Afognak quadrangles, Alaska: U.S. Geological Survey Open -File Report 89-570, 136 p., 2 sheets, scale 1:250,000. le '60 157'W ♦ r 155_W ♦♦� 0 M! ♦♦ 156"W • � I ♦1♦ Lake Clark Fault Zone♦♦ _ N. ♦ Graben Structure ♦fir; ,.;�r� ♦� � ��..� � , to ♦� ESL ♦, Block Faulted 7 LO ATI j ♦ Down Cf • G /- III I JZ , •00OPji M , , olulT Bay Fault Zone4 �rl9�j • ` v✓' 1,` km offset/� /j I 1( I • , Basement - /I c CUp c J"' Rec nt?_ 1 .. go • �.� 10 z Itll rl \ , Great Basin Uplift �� I 10;1 i r III - �� Recent �. �U ashik �'� °rQ. Volcanoes -0S ub-Basin°ol t� t i _ I , h�`i� ' '��✓III /` ' I arC Gif eeek Block Faulted Down /F';' ''' �, Naknek Lake Area -Regional Geology F� '�"�', �, Alaska Fartb Silences o , // �� p naar�e 2009 USGS Geology with additional m .11 �� 1•.. Inlaby WIT /i• / N '� structural interpretation by AES , " 0 10 20 30 40 50 Km 157�/, �,�56°W / \ NAD'23Albers Equal Area Dillingham-Illiamna Geology Unconsolidated Qs Igneous rocks T p g Tmv Tmf Tmba IIIIIII TKgd Alaska Aleutian Range - Sedimentary rocks Tcl - Talkeetna Formation = Jtk - Kamishak Formation - Trku Trkm - Structural assemblages xx xx x xx JPk x x - - Igneous rocks IIIIIII Togd Jqd Jmu Naknek-MtKatmai-Ugashik Geology Sedimentary Igneous Sedimentary Rocks - Volcanic - Quaternary Qa Qv Qaf Qpd Qb QTv Qmt - Volcanic - Tertiary Q m Tv - Tertiary Tbl Th - Cretaceous Kc Kk Kp Khe Kst - Jurassic in Jni ink ins IIIIIII Jnn J n c Js Jk it - Triassic N/ Trk Tm - Volcanic - Triassic Try - Intrusive - Tertiary MOW Ti Tu Tgd Tqd - Intrusive - Jurassic Jgd Jar - Jqd - Jgb Metamorphic - Mesozoic x , x�xx x x JPk Trc other water glacier OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. 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