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208-135
Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 12/05/2024 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20241217 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# BCU 12A 50133205300100 214070 8/17/2024 YELLOWJACKET GPT-PERF BCU 19RD 50133205790100 219188 9/26/2024 YELLOWJACKET PERF-GPT BCU 24 50133206390000 214112 8/19/2024 YELLOWJACKET PERF BCU 25 50133206440000 214132 9/27/2024 YELLOWJACKET PLUG-PERF BLOSSOM 1 50133206480000 215015 9/30/2024 YELLOWJACKET GPT-PLUG-PERF HV B-17 50231200490000 215189 9/23/2024 YELLOWJACKET GPT KU 24-7 50133203520100 205099 10/3/2024 YELLOWJACKET PERF KU 13-06A 50133207160000 223112 12/5/2024 AK E-LINE Plug Setting KU 22-6X 50133205800000 208135 12/8/2024 AK E-LINE Perf KU 23-07A 50133207300000 224126 12/7/2024 AK E-LINE CBL MPU L-17 50029225390000 194169 10/5/2024 YELLOWJACKET PERF MPU R-103 50029237990000 224114 10/14/2024 YELLOWJACKET CBL MPU C-23 50029226430000 196016 11/29/2024 AK E-LINE Plug/cement MPU D-01 50029206640000 181144 11/26/2024 AK E-LINE Perf PBU 13-24B 50029207390200 224087 9/26/2024 YELLOWJACKET CBL PBU 06-07A 50029202990100 224043 9/29/2024 BAKER MRPM PBU 06-18B 50029207670200 223071 10/1/2024 BAKER MRPM PBU 07-32B 50029225250200 204128 10/28/2024 BAKER SPN PBU 14-32B 50029209990200 224073 10/12/2024 BAKER MRPM PBU H-13A 50029205590100 209044 10/23/2024 BAKER SPN PBU L2-20 50029213760000 185134 10/7/2024 BAKER SPN PBU L3-22A 50029216630100 219051 10/9/2024 BAKER PEARL 10 50133207110000 223028 9/25/2024 YELLOWJACKET GPT-PERF PEARL 11 50133207120000 223032 8/29/2024 YELLOWJACKET GPT-PLUG-PERF SRU 241-33 50133206630000 217047 8/23/2024 YELLOWJACKET PERF Please include current contact information if different from above. T39863 T39864 T39865 T39868 T39869 T39870 T39871 T39872 T39873 T39875 T39874 T39867 T39866 T39876 T39877 T39880 T39878 T39879 T39881 T39882 T39883 T39884 T39885 T39886 T39887 KU 22-6X 50133205800000 208135 12/8/2024 AK E-LINE Perf Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2024.12.18 08:35:44 -09'00' 1. Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Re-Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2.Operator Name:4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6.API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Yes No 9. Property Designation (Lease Number):10. Field: 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 5,989'5,871' (fill) Casing Collapse Structural Conductor 2,260psi Surface 3,090psi Intermediate Production 6,390psi Liner Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments:Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16. Verbal Approval:Date: GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng dtaylor@hilcorp.com 907-947-8051 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi):Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: Tubing Size: PRESENT WELL CONDITION SUMMARY Daniel Taylorr, Optimization Engineer AOGCC USE ONLY Tubing Grade:Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEDA028142 208-135 50-133-20580-00-00 Hilcorp Alaska, LLC Proposed Pools: N/A TVD Burst N/A 7,740psi 1,308' Size 101' 1,440' MD See Attached Schematic 5,020psi 5,750psi 101'101' 1,440' November 29, 2024 N/A 5,989' Perforation Depth MD (ft): 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Kenai Unit (KU) 22.6XCO 510C Same 4,989'5-1/2" ~200psi 5,989' N/A Length N/A; N/A N/A; N/A 4,989'5,903'4,903' Kenai Sterling 6 Gas/Sterling 6 Gas Storage 13-3/8" 9-5/8" See Attached Schematic m n P s 66 t _ N Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Grace Christianson at 12:10 pm, Nov 20, 2024 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2024.11.15 16:06:33 - 09'00' Noel Nocas (4361) 324-655 10-404 BJM 12/3/24 SFD 11/20/2024 DSR-11/21/24*&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.12.03 14:35:52 -09'00'12/03/24 RBDMS JSB 120424 Well Prognosis Well: KU 22-06X Date: 11-14-24 Well Name: KU 22-06X API Number: 50-133-20580-00 Current Status: Storage Prod/Inj Permit to Drill Number: 208-1350 First Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Second Call Engineer: Daniel Taylor (907) 777-8319 (O) (907) 978-9135 (C) Maximum Expected BHP: ~ 300 psi @ 4587’ TVD (Pool 6 Max pressure in 4 years) Max. Predicted Surface Pressure: ~ 200 psi (Current Pool 6 SI pressure) Brief Well Summary KU 22-06X was drilled as a Pool 6 storage well and was perforated and brought online in February 2009. Well currently produces about 6 mmscfd @ 180 psi bottom hole pressure and 80psi tubing pressure. The reservoir model indicates this well is underperforming and the purpose of this work is to reperforate the Pool 6 sands. Notes Regarding Wellbore Condition x 5-1/2” completion x EL tagged fill @ 5862’ (6/23/23) Pool Top in KU 22-06X - Sterling Gas Pool 6 Top: 5,480’ MD; 4,395’ TVD Pre-sundry procedure 1. MIRU SL, PT to 1,000 psi 2. Bail fill to 5580’ MD. 3. RDMO SL E-Line Procedure 1. MIRU E-line, PT lubricator to 250 psi low and 1,000 psi high 2. PU GPT and RIH to ensure well is dry and complete correlation log 3. PU Guns and Reperforate Sterling Pool 6 sands: Proposed Perforated Intervals Pool Sand Top, MD ft Bottom, MD ft Top, TVD ft Bottom, TVD ft Total ft MD Sterling Gas Pool 6 Pool 6 ±5,504’ ±5,580’ ±4,430’ ±4,500’ ±76’ a. Proposed perfs also shown on the proposed schematic in red font. b. Send the correlation pass to the Reservoir Engineer (Daniel Taylor), and Geologist (Daniel Yancey) for confirmation. c. Verify PTs are open to SCADA before perforating. Record tubing pressures at 5, 10 and 15 minutes after each perforating run. d. These sands are in the Sterling Gas Pool 6 per CO 510C. 4. RDMO e-line. 5. Turn well over to production. SFD Well Prognosis Well: KU 22-06X Date: 11-14-24 Attachments: 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic RKB:21' 5,539' - 5,570' Lease:Kenai Unit 22-6x Prepaired by: Date Completed: February 27, 2009Revision Date:Kevin Skiba Well Name & Number:Kenai Gas Field A-028142 Ground Level:59' above MSL2/7/2009 Perforations: (MD)4,539' - 4,570' (TVD): Angle/Perfs:0.5º~1.5º @ 197' MDAngle @KOP and Depth: KU 22-6x Pad 34-31 823' FSL, 1,833' FEL, Sec. 31, T5N, R11W, S.M. Top of Cement @ 2,010' MD Permit #:208-135 API #:50-133-20580-00-00 Prop. Des:A-028142 KB elevation:80' (21' AGL) Latitude:60°28' 32.052" N Longitude:151°16' 21.417" W X:1,410,822.78 Y:2,367,932.37 Spud:10/11/2008 TD:10/23/2008 Rig Released:10/28/2008 12:00hrs Production Agreement:Kenai Unit, Sterling PA # 891006367A Conductor 13-3/8" L-80 68 ppf Top Bottom MD Surf' 101' TVD Surf' 101' Surface Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 1,440' TVD 0' 1,308' 12-1/4" hole cmt with 443 sks (196 bbls) of 12ppg Type-1 cmt. 95 sks (42 bbls) of cmt to surface. Production Casing 5-1/2" L-80 17 ppf Butt-Mod Top Bottom MD 0' 5,989' TVD 0' 4,989' 8-1/2" hole cmt with 365 sks (239 bbls) of Class G cmt, floats held. Sterling Pool-6 Perfs: MD Ft TVD Gun Type Date 5,504'-5,539' 35' 4,504'-4,539' 3-3/8' 6spf 2/6/09 5,539'-5,570' 31' 4,539'-4,570' 3-3/8' 6spf 2/6/09 TD 5,989' MD 4,989' TVD PBTD 5,903' MD 4,903' TVD Fill Tagged @ 5,871' ELM (11/26/08) RKB:21'59' above MSL2/7/2009 Angle/Perfs:0.5º~1.5º @ 197' MDAngle @KOP and Depth: Lease:Kenai Unit 22-6x Prepaired by: Date Completed: November 14, 2024Revision Date:Donna Ambruz Well Name & Number:Kenai Gas Field A-028142 Ground Level: KU 22-6x Pad 34-31 823' FSL, 1,833' FEL, Sec. 31, T5N, R11W, S.M. Top of Cement @ 2,010' MD Permit #:208-135 API #:50-133-20580-00-00 Prop. Des:A-028142 KB elevation:80' (21' AGL) Latitude:60°28' 32.052" N Longitude:151°16' 21.417" W X:1,410,822.78 Y:2,367,932.37 Spud:10/11/2008 TD:10/23/2008 Rig Released:10/28/2008 12:00hrs Production Agreement:Kenai Unit, Sterling PA # 891006367A Conductor 13-3/8" L-80 68 ppf Top Bottom MD Surf' 101' TVD Surf' 101' Surface Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 1,440' TVD 0' 1,308' 12-1/4" hole cmt with 443 sks (196 bbls) of 12ppg Type-1 cmt. 95 sks (42 bbls) of cmt to surface. Production Casing 5-1/2" L-80 17 ppf Butt-Mod Top Bottom MD 0' 5,989' TVD 0' 4,989' 8-1/2" hole cmt with 365 sks (239 bbls) of Class G cmt, floats held. Sterling Pool-6 Perfs: MD Ft TVD Gun Type Date 5,504'-5,539' 35' 4,504'-4,539' 3-3/8' 6spf 2/6/09 ±5,504'-5,580' ±76' ±4,430'-4,500' Proposed 5,539'-5,570' 31' 4,539'-4,570' 3-3/8' 6spf 2/6/09 TD 5,989' MD 4,989' TVD PBTD 5,903' MD 4,903' TVD Fill Tagged @ 5,871' ELM (11/26/08) PROPOSED Nolan Vlahovich Hilcorp Alaska, LLC Geo Tech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 07/31/2023 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20230731 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# KBU 22-06 50133205500000 205055 7/22/2023 YELLOW JACKET SCBL KU 22-6X 50133205800000 208135 6/23/2023 HALLIBURTON EPX KU 22-6X 50133205800000 208135 6/23/2023 HALLIBURTON MFC MPU F-09 50029227730000 197104 7/22/2023 YELLOW JACKET PERF SRU 213-15 50133206520000 215100 7/20/2023 YELLOW JACKET GPT/PLUG/PERF Please include current contact information if different from above. T37902PTD:205-054 T37903 T37903 T37904 T37905 KU 22-6X 50133205800000 208135 6/23/2023 HALLIBURTON EPX KU 22-6X 50133205800000 208135 6/23/2023 HALLIBURTON MFC Kayla Junke Digitally signed by Kayla Junke Date: 2023.08.01 10:13:43 -08'00' • DATA SUBMITTAL COMPLIANCE REPORT 4/19/2011 Permit to Drill 2081350 Well Name /No. KENAI UNIT 22 -6X .Operator MARATHON OIL CO API No. 50- 133 - 20580 -00 -00 N4S'f MD 5989 TVD X 5989 Completion Date 2/7/2009 Completion Status 1G -GS Current Status 1G -GS UIC N REQUIRED INFORMATION t.--- )' / l.v " Mud Log No Samples No Directional Survey X16' DATA INFORMATION / Types Electric or Other Logs Run: Text to long for this data field. See 10 -407 (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr IP Data Digital Dataset Log Log Run Interval OH / lye Med /Frmt Number Name Scale Media No Start Stop CH Received Comments Rpt Report: Final Well R 0 0 Open Final Well, Table of Cont, Mug logging and Equip, Well Details, Geo Data, Drill Data, Daily Reports D C Las 17657�eport: Final Well R 101 5989 Open Final Well, Table of Cont, Mug logging and Equip, Well Details, Geo Data, Drill Data, Daily Reports w /PDS mud log graphics Log Mud Log 2 Col 101 5989 Open 3/2/2009 MD Formation Log Log Mud Log 2 Col 101 5989 Open 3/2/2009 TVD Formation Log 'Log Mud Log 2 Col 101 5989 Open 3/2/2009 MD Drilling Dynamics og Mud Log 2 Col 101 5989 Open 3/2/2009 TVD Drilling Dynamics og Cement Evaluation 5 Blu 1800 5871 Case 3/2/2009 Dual Radial CBL, GR, CCL 26- Nov -2008 • 1 1--E Induction /Resistivity 25 Blu 2009 5957 Open 3/2/2009 MD Compact Quad Combo Quicklook Log 24- Oct -2008 Density 25 Blu 2009 5912 Open 3/2/2009 MD Photo Dens Dual Spaced Neutron 24-Oct- 2008 Xg Sonic 25 Blu 2009 5941 Open 3/2/2009 MD Comp. Sonic 24 -Oct- 2008 --Log Caliper log 5 Blu 2009 5911 Open 3/2/2009 MD Hole Volume Caliper Log 24- Oct -2008 log Induction /Resistivity 25 Blu 2009 5957 Open 3/2/2009 MD Array Induction Vectar Proc. 24- Oct -2008 Induction /Resistivity 25 Blu 1950 5958 Open 3/2/2009 MD Array Induction 24 -Oct- 2008 DATA SUBMITTAL COMPLIANCE REPORT 4/19/2011 Permit to Drill 2081350 Well Name/No. KENAI UNIT 22-6X Operator MARATHON OIL CO API No. 50-133-20580-00-00 MD 5989 TVD 5989 Completion Date 2/7/2009 Completion Status 1G-GS Current Status 1G-GS UIC N t..- Induction/Resistivity 25 Bu 1679 4958 Open 3/2/2009 TVD Array Induction 24- I Oct-2008 I I Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION • Well Cored? YC) Daily History Received? / N Chips Received? Y7 Tops C61 N Analysis Received? Comments: Comments: Compliance Reviewed By: Date: • Marathon Oil Company Alaska Asset Team /AA\ Marathon P.O. Box 1949 Kenai, AK 99611 M ARATHO N OiI Company Telephone 907/283 -1371 Fax 907/283 -1350 February 27, 2009 RECEIVED Mr. Tom Maunder Alaska Oil & Gas Conservation Commission MAR 0 2 2009 333 W 7 Ave 0il& Gas Cons. Commission Anchorage, Alaska 99501 Andscase Reference: 10 -421 Gas Well Open Flow Potential Test Report Field: Kenai Gas Field Well: Kenai Unit 22 -6x Dear Mr. Maunder: Enclosed for your records is the Gas Well Open Flow Potential Test Report, 10 -421, for KU 22 -6x well. KU 22 -6x was completed on February 7, 2009 with initial gas production starting on February 9, 2009. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Engineering Technician Enclosures: 10 -421 Open Flow Report cc: Houston Well File Kenai Well File KJS Ot t35� ` STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMMION GAS WELL OPEN FLOW POTENTIAL TEST REPORT la. Test: U Initial Li Annual U Special 1b. Type Test: U Stabilized U Non Stabilized U Multipoint ❑ Constant Time ❑ Isochronal ❑ Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Oil Company 2/7/2009 208 -1350 3. Address: 6. Date TD Reached: 12. API Number: PO BOX 1949 Kenai, Alaska 99611 -1949 10/23/2008 50 -133- 20580 -00 -00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 823' FSL, 1,833' FEL, Sec. 31, T5N, R11W, S.M. 80' above MSL (21' AGL) Kenai Unit 22 -6x Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 1,415' FNL, 1,285' FWL, Sec. 6, T4N, R11W, S.M. 5,903' MD 4,903' TVD Total Depth: 9. Total Depth (MD + TVD): Kenai Gas Field / Sterling Pool -6 1,418' FNL, 1,285' FWL, Sec. 6, T4N, R11W, S.M. 5,989' MD 4,989' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 270,802.513 y- 2,368,171.052 Zone- 4 A - 028142 TPI: x- 272,353.050 y- 2,365,910.690 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 272,353.844 y- 2,365,907.463 Zone- 4 Single - Zone 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: (MD) From To 5.500" 17 ppf, L -80 4.892" 5,989' MD 5,539' 5,570' 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. N/A N/A N/A N/A 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): N/A - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): ❑ Tubing 0 Casing 101 F° 61 psia @ Datum 4,823' TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N2: % H Prover: Meter Run: Taps: 5,483' MD 4,483' TVD 0.56 0.241 0.337 0 - Facility - 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line X Orifice Size (in.) Size (in.) psig Hw F° psig F psig F Hr. 1. 3.826 X 6.000 54 0.56 59 - - - - 4.00 2. X 3. X 4. X 5. X Basic Coefficient Flow Temp. Super Comp. Pressure Gravity Factor Rate of Flow No. (24-Hour) -1 Pm Factor F Factor Q Mcfd Fb or Fp Ft 9 Fpv 1. 362.56 5.74804 68.73 1.00 1.336 1.0483 2084 2. 3. 4. 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 0.10 519 1.51 0.910 0.56 2. 3. Critical Pressure 673.1 4. Critical Temperature 343.2 5. Form 10 -421 Revised 1/2004 CONTINUED ON REVERSE SIDE ; �� i (€ ct . in Duplicate i U" Pc 147 pc 21529.693 ( p{ No. Pt Pt Pc Pw Pw Pc Ps Ps Pf -Ps 1. 68.73 4723.81 2. 3. 4. 5. 25. AOF (Mcfd) 2,390 n 0.750 Remarks: Erosional rate is calculated using API equation with C = 100. The erosional rate points can't be seen on the plot since the erosional rates are much higher than the scale of the plot. I hereby certif that the foregoing is true and rrect to the best of my knowledge. Signed Title Engineering Technician Date 2/27/2009 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ h Fp Basic critical flow prover or positive choke factor Mcfd /psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= - 1 dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air= 1.000), dimensionless Gg Specific gravity of separator gas (air= 1.00), dimensionless GOR Gas -oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back - pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut -in wellhead pressure, psia Pf Shut -in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia O Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10 -421 Revised 1/2004 Side 2 • • Marathon Oil Company Alaska Asset Team / AA \ Marathon P.O. Box 1949 Kenai, AK 99611 M ARATHO N O.1 Company Telephone 907/283 -1371 Fax 907/283 -1350 February 25, 2009 Mr. Tom Maunder MAR 2 Fqx9 Alaska Oil & Gas Conservation Commission 333 W 7 Ave Alaska CLV C mmissinn Anchorage, Alaska 99501chr Reference: 10 -407 Well Completion Report and Log Field: Kenai Gas Field Well: Kenai Unit 22 -6x Dear Mr. Maunder: Submitted for your records is the Well Completion Report and Log for KU 22 -6x well. KU 22 -6x is a new well which was drilled into the Sterling Pool -6 zone and completed on February 7, 2009. Work on this well was performed under Permit to Drill #208 -135. Please contact me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, 16-da-H Kevin J. Skiba Engineering Technician Enclosures: 10 -407 Well Completion Report & Log cc: Houston Well File Reference Attachment List Kenai Well File KJS CLR RECEIVED !� STATE OF ALASKA ,_,....-.699' • ALA% OIL AND GAS CONSERVATION 141 l ) WELL COMPLETION OR RECOMP B.Q, r ,.I�VD LOG Oil ❑ Gas Plugged El Abandoned ❑ Suspended y � i 9 � e Class: 20AAC 25.105 20AAC 25.110 D4elopment 0 Exploratory ❑ GINJ WINJ ❑ WDSPL WAG ❑ Other No. of Completions: 1 Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or i ' j, 12. Permit to Drill #: 208 - 1350 Marathon Oil Company Aband.: 2/7/2009 Sundry#: NA 3. Address: PO Box 1949 6. Date Spudded: 13. API Number: Kenai Alaska, 99611 -1949 10/11/2008 50- 133 - 20580- 00 -00- 4a. Location of Well (Governmental Section): 7. Date TD Reached: (J 14. Well Name and Number: Surface: 823' FSL, 1,833' FEL, Sec. 31, T5N, R11W, S.M. 10/23/20410 Kenai Unit 22 -6x - Top of Productive Horizon: 8. KB (ft above MSL): 80' 15. Field /Pool(s): 1,415' FNL, 1,285' FWL, Sec. 6, T4N, R11W, S.M. Ground (ft MSL): 59' , Total Depth: 9. Plug Back Depth(MD +TVD): Kenai Gas Field / Sterling Pool - 1,418' FNL, 1,285' FWL, Sec. 6, T4N, R11W, S.M. 5,903' 4,903' 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 270,802.51 y- 2,368,171.05 Zone- 4 5,989' 4,989' A - 028142 - TPI: x- 272,353.05 y- 2,365,910.69 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 272,353.84 y- 2,365,907.46 Zone- 4 NA 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Array Induction TVD, Array Induction MD, Array Induction Vector Processing MD, Photo Density Dual Spaced Neutron MD, Formation Tester MD, Hole Volume Caliper MD, Compensated Sonic MD, Compact Quad Combo QuickLook MD, Dual Radial Cement Bond -Gamma Ray -CCL 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 13 -3/8" 68 L - 0' 101' 0' 101' Driven NA NA 9 -5/8" 40 L -80 0' 2,009' 0' 1,677' 12 -1/4' 443 sks, Type 1 95 sks 5 -1/2" 17 L -80 0' 5,989' 0' 4,989' 8 -1/2" 365 sks, Class G 0 23. Open to production or injection? Yes II No❑ If Yes, list each 24. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) MD TVD Perf Type NA NA 5,504' - 5,570' 4,504' - 4,570' 0.22" 6spf 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED NA NA 26. PRODUCTION TEST Date First Production: February 9, 2009 Method of Operation (Flowing, gas lift, etc.): Flowing Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: 2/11/2009 4 Test Period —► 0 347.33 0 6" Vee -Ball 100% gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. - 54 24 -Hour Rate — 0 2,084 0 NA 27. CORE DATA Conventional Core(s) Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. ; iu;11 1 : b9 Form 10 -407 Revised 2/2007 CONTINUED ON REVERSE -- ' - ,tb 13FL APR 0 9 2009 ,4--41 G 28. GEOLOGIC MARKERS (List all formations and ma� encountered): 29. FORMATION TESTS NAME MD TVD Well tested? UYes HNo If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost - Top detailed test information per 20 AAC 25.071. Permafrost - Base Sterling Pool 3 4,575' 3,601' Sterling Pool 4 4,804' 3,812' Sterling Pool 5.1 4,943' 3,946' Sterling Pool 5.2 5,195' 4,195' Sterling Pool 6 5,492' 4,492' Upper Beluga 5,725' 4,725' Formation at total depth: Upper Beluga 5,989' 4,989' 30. List of Attachments: Refer to Attachment List 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283 - 1371 Printed Name: Craig L. Rang - Title: Senior Completions Engineer Signature: (_ > rl_ Phone: (907) 283 -1372 Date: February 25, 2009 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for / njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 2/2007 0 • Permit #: 208-1350 KU 22 -6x API #: 50- 133 - 20580 -00 -S1 Kenai Gas Field Prop. Des: A- 028142 Pad 34 -31 laYk KB elevation: 80' (21' AGL) 823' FSL, 1,833' FEL, M ARATHON Latitude: 60° 28' 32.052" N Longitude: 151° 16' 21.417" W Sec. 31, T5N, R11 W, S.M. X: 1,410,822.78 Y: 2,367,932.37 Spud: 10/11/2008 j i l TD: 10/23/2008 Conductor 13 - 3/8" L - 80 68 ppf Rig Released: 10/28/2008 12:00hrs Top Bottom Production Agreement: Kenai Unit, MD Surf' 101' Sterling PA # 891006367A TVD Surf' 101' Surface Casing 9 -5/8" L -80 40 ppf BTC Top of Cement Top Bottom @ 2,010' MD MD 0' 1,440' TVD 0' 1,308' 12 -1/4" hole cmt with 443 sks (196 bbls) of 12ppg Type -1 cmt. 95 sks (42 bbls) of cmt to surface. Production Casing 1 5 -1/2" L -80 17 ppf Butt -Mod Top Bottom MD 0' 5,989' TVD 0' 4,989' ' 8 -1/2" hole cmt with 365 sks (239 bbls) of Class G cmt, floats held. 4 Sterling Pool -6 Perfs: MD Ft TVD Gun Type Date _a c - r J 5,504' - 5,539' 35' 4,504'- 4,539' 3 -3/8' 6spf 2/6/09 D I 5,539' - 5,570' 31' 4,539'- 4,570' 3 -318' 6spf 2/6/09 niiil l . „y_ is _ H Fill Tagged @ 5,871' ELM (11/26/08) TD PBTD 5,989' MD 5,903' MD 4,989' TVD 4,903' TVD Well Name & Number: Kenai Unit 22 -6x Lease: Kenai Gas Field A- 028142 Perforations: (MD) 5,539' - 5,570' (TVD): 4,539' - 4,570' Angle @KOP and Depth: –1.5° @ 197' MD Angle Perfs: 0.5° Date Completed: 2/7/2009 Ground Level: 59' above MSL RKB: 21' Prepaired by: Kevin Skiba Revision Date:l February 27, 2009 • • ( A - 7 - Marathon Operations Summary Report \ Oil Company Well Name: KENAI UNIT 22 -6X QtriQtr, Blodr, Sec, Town, Range Field Name License No. State /Province Country SEC 31 T5N R11 W SM KENAI A- 028142 ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 59.00 I 21.00 10/11/2008 Daily Operations Report Date: 10/812008 Job Category: DRILLING 24 Hr Summary Rig accepted from BC -19 00:00hrs 1018/08 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 00:00 06:00 6.00 MOB RIG AF Rig up Boiler and generator house. Haul legal loads from BC -19 to KU 22 -6x Report Date: 10/912008 Job Category: DRILLING 24 Hr Summary Rig up GD1 over KU22 -6X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 18:00 12.00 MOB RIG AF PJSM: Move sub in and scope up .Center sub over conductor . Set mud boat. Drive carrier and set/ Level on mud boat. Set pit and pump modules and rig up. Continue receiving loads from BC -19 and unload. Spot parts house & mechanics vans. Level carrier. 18:00 00:00 6.00 RURD RIG AF PJSM w/ crane operator: Crane up gray iron. Set doghouse, flowline, derrick house, choke house, stairs & landing, v -door & windwalls. Pull wires throughout rig. Install panic line. Set BOP connex. Raise mast. 00:00 06:00 6.00 RURD RIG AF PJSM: Set trip tank. Scope up derrick. Secure guy lines. R/U catwalk & beaver slide. R/U hydraulic lines. M/U lower standpipe & cement lines. R/U choke & Geronimo lines. Install cylinder socks. R/U geolograph, standpipe manifold, fill up & kill lines, splash guards, brake handle, drillers console, dresser sleeves, pop -off lines, snub post & carrier tarp. Set mat boards for #3 pump. 0/0 teflon on top drive torque bushing. Report Date: 10/10/2008 Job Category: DRILLING 24 Hr Summary Cony rig up. Lock down location for drug search. Repair generator #1. Replace disc brake pads on drawworks. Install wellhead & test to 1800 psi f/ 10 min (ok). Install spacer spool. 0/0 cmt line. Spool new drilling line onto carrier. Install torque tube. P/U top drive. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 RURD RIG AF Replace teflon on top drive slides, Set cuttings tank, continue rig up 08.30 11:00 2.50 SECURE WELL AF Lock down location for M0C drug search, Hold safety meeting. During drug dog inspection 11:00 12:00 1.00 RURD RIG AF Set #3 mud pump. 12:00 18:00 6.00 REPAIR RIG AF PJSM: Repair Disc Brake and Muffler on #1 generator. Replace disc brakes on both drawwoks calipers. Set hanson tank & auxiliary generator. 18:00 00:00 6.00 NUND WLHD AF PJSM: Cut & dress 13 -3/8" casing. Install 13- 31'8" SLC X 13 -5/8" 5M flanged multibowl wellhead &test to 1800 psi f/ 10 min (ok). Install spacer spool. 0/0 cement line. 00 06:00 6.00 RURD RIG AF PJSM: Spool new drilling line onto carrier spool. 0/0 drilling line. Install torque tube. P/U top drive. Report Date: 10/11/2008 Job Category: DRILLING 24 Hr Summary String up new drilling line. N/U BOP stack & diverter. Mix mud. R/U BJ cmt van & MWD cabin. Load 5" drill pipe on racks. R/U pipe handling equipment. Strap 5" drill pipe. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:30 6.50 RURD RIG AF String blocks and crown with new drilling line. Remove old line from draworks drum. Spool new line on drum. Secure line to deadman anchor. 12:30 03:00 14.50 NUND BOPE AF PJSM : Nipple up 13 5/8 bop stack with 11"x 16 "diverter spool outlet. Fill pits with H2o begin mixing spud mud. Move in BJ van and rig up. Set MWD cabin and rig up. Install 16" knife valve and run 16" diverter line. Had to extend diverter line to 113'. due to well house. 03:00 06:00 3.00 RURD RIG AF PJSM: Load 5" drill pipe on pipe racks. Install mousehole. Set wear ring. R/U pipe handling equipment, rig tongs, pipe spinners, bails & hydraulic elevators. Strap 5" drill pipe. Report Date: 10/12/2008 Job Category: DRILLING 24 Hr Summary Perform rig inspection. Function test diverter. (Test witnessed by Bob Noble - AOGCC). P/U & stand back 72 jts 5" dp, 21 jts hwdp &jars. P/U 12 -1/4" bit, motor, pony collar, string stab & MWD. Wash down & tag up @ 101'. Drill 12 -1/4" hole f/ 101' -197'. P/U remaining directional components. Commence kick -off 12 -1/4" directional hole f/ 197' -508'. Accept rig @ 08:00 hrs on 10/11/2008. Spud well @ 19:30 hrs. on 10/11/2008. Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 2- 06:00 08:00 2.00 PULD DP AF Perform rig inspection. Clean up cellar. Chink up wind walls in cellar. Complete rig up winterization. www.peloton.com Report Printed: 2/19/2009 • \ Marathon Operations Summary Report Oil C ompany Well Name: KENAI UNIT 22 -6X Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 08:00 09:00 1.00 TEST ROPE AF Perform Diverter function test . Called Tim Lawlor BLM 0600hrs 10 -10 -08 and gave 24 hr notice of Diverter test and intent to spud. Called AOGCC 0800 10 -10 -08 Gave Notice of diverter test. Test witnessed by Bob Noble AOGCC. Test LEL, H2s Flow and pvt system. all passed. Perform accumulator drawdown test. 09:00 16:30 7.50 PULD DP AF PJSM: P/U drift and stand back 72 jts/36 stds. 5" drillpipe and 21jts HWDP and jars 16:30 19:00 2.50 PULD BHA AF PJSM: P/U 12 1/4 bit Motor, pony colar, stab & MWD Monel. 19.00 19:30 0.50 CIRC MUD AF PJSM: Break circ & check for leaks. Wash down & tag bottom @ 101'. 19:30 21:00 1.50 DRILL SLID AF PJSM: Spud well. Drill 12 -1/4" vertical hole f/ 101'-197'@ 400 gpm & 40 rpm. ART: 0.8 hrs. Spud well @ 19:30 hrs on 10/11/2008. 21:00 22:30 1.50 PULD BHA AF PJSM: Rack back 2 std HWDP. P/U (2) NMDC's, shock sub & dbl pin x/o sub. 22:30 00:00 1.50 DRILL ROT AF Kickoff 12 -1/4" directional hole f/ 197'-259'@ 530 gpm, 500 psi, wob 2 -10 klb, p/u 35 klb, s/o 35 klb, rot wt 35 klb. ART: 0 hrs, AST: 0.8 hrs. 00:00 06:00 6.00 DRILL ROT AF PJSM: Drill 12 -1/4" build section f/259' -508' @ 375 gpm, 400 psi, wob 5 -15 klb, 40 rpm, tq 1500 ft -Ibs, p/u 50 klb, s/o 45 klb, rot wt 45 klb. ART: 0.4 hrs, AST: 3.0 hrs. No gains or losses. Cannot get MWD signal below 500 gpm's. Sliding blind, no toolface. Daily Operations Report Date: 10/13/2008 Job Category: DRILLING 24 Hr Summary Directional dill 12 -1/4" hole f/ 508'- 2016'. Circ hole clean. Make wiper trip f/ 2016' -150'. Current bit depth @ 643'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL SLID AF Directional Drill 12 1/4 hole f 508'- 960' 575gpm 600psi wob 5 -15kIb p/u 58kIb s/o 55klb rot wt 55klb tq 2- 3kft- lbs.Art = .6 Ast= 3.2. No Gain /Loss 12:00 18:00 6.00 DRILL SLID AF PJSM: Drill 12 -1/4" build section f/ 960' -1420' @ 585 gpm, 800 psi, wob 5 -15 klb, 50 rpm, tq 3 -4 kft -Ibs, p/u 65 klb, s/o 55 klb, rot wt 60 klb. ART: 0.9 hrs, AST: 2.7 hrs. No gains or losses. 18:00 00:00 6.00 DRILL ROT AF Drill 12 -1/4" tangent section f/ 1420'-1881'@ 585 gpm, 850 psi, wob 5 -20 klb, 50 rpm, tq 4 kft-Ibs, p/u 75 klb, s/o 55 klb, rot wt 62 klb. ART: 2.1 hrs, AST: 1.2 hrs. No gains or losses. 00:00 02:30 2.50 DRILL ROT AF PJSM: Drill 12 -1/4" tangent section f/ 1881' - 2016' @ 540 gpm, 1100 psi, wob 5 -20 klb, 50 rpm, tq 3 -5 kft -Ibs, p/u 75 klb, s/o 55 klb, rot wt 63 klb. ART: 0.6 hrs, AST: 0.4 hrs. No gains or losses. Note: Sudden pump pressure increase f/ 850 to 1100 psi. 02:30 04:00 1.50 CIRC MUD AF Circ hole clean @ 540 gpm, 1100 psi & 75 rpm's. Check flow (static). Large amount of clay returning over shakers. 04:00 06:00 2.00 TRIP WIPR AF PJSM: Wiper trip. POOH f/2016' -150'. Current bit depth @ 643'. Hole pulling slick. Having to use reverse gear to lower blocks due to warped rotor on drawworks disc brake. Report Date: 10/14/2008 Job Category: DRILLING 24 Hr Summary Cont. POOH to 270'. Troubleshoot and shim disk brake. Cont. POOH to 210'. PJSM. RIH F/210'to 2016'. Circ. clean. POOH LID BHA. Pull wear bushing. Make test run w/ 9 -5/8" hanger. R/U csg handling tools. Run 36 jts 9 -5/8" 40#1L -80 csg to 1440' (tight spot). Circ csg down f/ 1440' to 1738' @ 06:00 hrs. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 TRIP DP AF Cont. POOH 270'. 06:30 07:00 0.50 REPAIR RIG AF Trouble shoot and shim disk break. 07:00 07:30 0.50 TRIP DP AF Cont. POOH to 210'. 07:30 09:30 2.00 TRIP DP AF PJSM. RIH to 2016'. 09:30 10:30 1.00 CIRC MUD AF Pump nut plug sweep and circ. clean(CBUX2) 600GPM 1100psi(sweep showed 15% wash out). 10:30 14:00 3.50 TRIP DP AF Flo check static losses 1BPH. POOH w /5" DP(SLM no correction). 14:00 17:00 3.00 PULD BHA AF PJSM. UD directional BHA. 17:00 21:00 4.00 RURD CSG AF PJSM: Pull wear ring. Make test run w/ 9 -5/8" hanger assy. R/U 9 -5/8" csg handling tools, stabbing board, swedge & low- torque. Static fluid losses: 1 bph. www.peloton.com Report Printed: 2/19/2009 • • Marathon Operations Summary Report - ,. ,, Oil Company Well Name: KENAI UNIT 22 -6X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 21:00 06:00 9.00 RUN CSG AF PJSM w/ Weatherford: P/U 9 -5/8" shoe track(2 jts) & check floats (ok). Cont RIH w/ 9 -5/8 ", 40 ppf, L -80, BTC casing to 1440'. Hit ledge. Slacked off t 1 klbs. Make several attempts. No go. Install circ swedqe & wash through tight spot. Hole still tight. Wash down f/ 1440' to 1738'0 06:00 hrs. Ran 43 of 49 total jts. P /U: 73 klbs, S /0: 50 klbs. Daily Operations Report Date: 10/15/2008 Job Category: DRILLING 24 Hr Summary Wash 9 -5f8" csg down f/ 1738'- 2009'. Circ. 1 1/2 CSG volumes. Cement 9 5/8" CSG. IJD hanger running tool. Flush stack & mud lines. Set pack -off & test to 5000 psi ff 15 min. N/D diverter line & knife valve. Install blank on diverter line flange. Make up kill line & choke line. Test all gas & PVT alarms. Perform accumulator drawdown test. Test all ROPE & related components to 250/2000 psi f/ 10 min. BOP test witness waived by Jim Reg ( A0GCC) @ 13:00 hrs. on 10/14/2008. Also notified BLM @ 08:00 hrs. on 10/14/2008. Ops Trouble 1- Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 CIRC MUD TA MDOT Wash 9 -5/8" csg down f/ 1738'- 2009'(total 49 joints) . Land out on hanger asst'. CSG shoe @ 2009' FC @ 1926'. 5BPM 180psi. 08:30 10:00 1.50 CIRC MUD AF While Circ 9 5/8" CSG 5BPM 180psi. R/D weatherford CSG tools. PJSM for cement job. 10:00 11:30 1.50 PUMP CMT AF R/U BJ cement head. Pump 40bbls 8.3ppg spacer ahead with rig pumps. Pump 5bbls water with BJ. Test cement line to 2000psi. 0/0 low torque valve on cement line and re -test OK. Lower plug dropping pin on head was leaking. Drop bottom plug. Remove leaking pin and bull plug same. 11:30 13:30 2.00 PUMP CMT AF PJSM with crew coming on tour. Mix and pump 443SXS Type 1 cement w/22% LW -6, 20% MPA -1, 2% CaCl2, 1%SMS, .3 %CD -32, .05% Static free and 1 gphs FP -6L to yield 196bbIs 12ppq slurry. Drop top plug and chase out with 5BBLS water from BJ. Switch to rig pumps and displace w/144.5 bbls 9.2ppg mud. Did not bump plug. CIP @ 13:00hrs. Full returns during job with 42bbls cemet to surface. Bleed off pressure and check flloats OK. Took all cement returns to cellar. 13:30 16:30 3.00 RURD OTHR AF PJSM: Flush stack. C/O to short bales and DP elevators. Back out hanger running tool and L/D. Empty mud pits. 16:30 19:00 2.50 TEST WLHD AF PJSM: Install 9 -5/8" packoff & test to 5000 psi f/ 15 min (ok). 19:00 01:30 6.50 NUND BOPE AF PJSM: N/D diverter line & knife valve. Blank off diverter line flange. R/U kill line valve & kill line. Mixing mud. Loaded 50 jts 5" drill pipe on pipe racks. 01:30 06:00 4.50 TEST BOPE AF PJSM: Test all gas & PVT alarms. Perform accumulator drawdown test. R/U & test ROPE & all related components to 250/2000 psi f/ 10 min. BOP test witness waived by Jim Reg (AOGCC) @ 13:00 hrs. on 10/14/2008. Also notified BLM @ 08:00 hrs. on 10/14/2008. Report Date: 10/162008 Job Category: DRILLING 24 Hr Summary Cont test BOPE to 250/2000 psi f/ 10 min. Test 9 -5/8" csg to 1500 psi f/ 30 min. P/U 64 jts 5" dp & stand back. C/O top drive saver sub. P/U 8-1/2" directional assy. RIH w/ P/U 36 jts 5" dp. RIH w/ P/U 32 jts 5" dp to 1820'. Wash down f/ 1820' until tag up @ 1920'. 0/0 cmt & float equip f/ 1920'- 2009'. Clean out 12-1/4" rat hole to 2016'. Drill 20' new hole f/ 2016'- 2036'. CBU. Pump spacer & displace hole w/ new 8.9 ppg flo -pro mud. Perform FIT(EMW =12.0 ppg). Drill ahead 8-1/2" tangent hole f/ 2036'- 2323'. Ops Trouble Start Time End Time Dur(hrs) , Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TEST BOPE AF Cont. to test BOPE 250/2000psi 10min. 08:00 09:00 1.00 RUNPUL WBSH AF Run wear bushing. 09:00 10:00 1.00 TEST CSG AF Test 9 5/8" casing against blind rams 1500psi/30min (ok),. Blow down mud lines. 10:00 15:00 5.00 PULD DP AF PJSM. Strap drift and P/U 64 joints 5" DP and rack back in derrick. 15:00 16:00 1.00 SERVIC RIG AF PJSM. C/0 top drive saver sub. 16:00 19:30 3.50 PULD BHA AF PJSM. P/U 8.5" bit and 6 3/4" directional BHA. Orient directional tools. Shallow test MWD (ok). RIH w/ HWDP &jars to 813'. 19:30 21:30 2.00 PULD DP AF PJSM: RIH while P/U 36 jts 5" drill pipe f/ 813'1820'. Wash last 4 jts down f/ 1820' until tag up @ 1920'. 21:30 23:30 2.00 DRILL CMT AF Drill out cement & 9-5/8" float equip f/ 1920'- 2009'. Cleanout 12 -1/4" rat hole f/ 2009' -2016' 23:30 00:00 0.50 DRILL ROT AF Drill 8 -12" hole f/ 2016' -2036' @ 358 gpm, 800 psi, wob 2 -5 klbs, 25 rpm, tq 4 kft -lbs, p/u 76 klbs, s/o 50 klbs, rot wt 60 klbs. ART: 0.1 hrs. 00.00 01:00 1.00 CIRC MUD AF PJSM: CBU, pump 30 bbl spacer & displace hole w/ new 8.9 ppg flo -pro mud system. www.peloton.com Report Printed: 2/19/2009 • • • Marathon Operations Summary Report Oil Company Well Name: KENAI UNIT 22 -6X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 01:00 01:30 0.50 TEST LOT AF R/U & perform F.I.T. u@ 1676' tvd (2009' md) w/ 8.9 ppg mud wt & 270 psi. EMW = 12.0 ppa. 01:30 07:00 5.50 DRILL ROT AF Drill 8 -112" hole f/ 2036' -2323' @ 400 gpm, 600 psi, wob 5 -15 klbs, 40 rpm, tq 4 kft -Ibs, p/u 76 klbs, s/o 50 klbs, rot wt 60 klbs. ART: 1.8 hrs. AST: 0.3 hrs. Daily Operations Report Date: 10/17/2008 Job Category: DRILLING 24 Hr Summary Drill ahead 8 -1/2" directional hole f/ 2323'- 4220'. Circ hole clean. Opc Trouble L_ Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 8.5" tangent hole F/2323' to 2784'. ART= 2.4hrs AST =.9hrs 387GPM 600psi P/U 80K S/O 60K ROT 70K WOB 2/10K 4ORPM TO 3.5 -4K FT -lb 12:00 18:00 6.00 DRILL ROT AF PJSM. Drill 8.5" tangent hole F/2784' to 3305'. ART= 3.3hrs AST= .4hrs 387GPM 750psi P/U 92K S/O 65K ROT 77K 3 -4K Ft -lb 4ORPM 5 -10 WOB 18:00 00:00 6.00 DRILL ROT AF Drill 8-1/2" drop section f/ 3305 385 gpm, 900 psi, wob 5 -10 klbs, 60 rpm, tq 4 -6 kft -Ibs, p/u 100 klbs, s/o 65 klbs, rot wt 80 klbs. ART: 3.2 hrs. AST: 0.6 hrs. t 00 05:30 5.50 DRILL ROT AF PJSM: Drill 8 -1/2" drop section f/ 3820' 4220' @ 393 gpm, 900 psi, web 5 -15 klbs, 50 rpm, tq 5 -7 kft-lbs, p/u 110 klbs, s/o 75 klbs, rot wt 90 klbs. ART: 2.5 hrs. AST: 0.4 hrs. 05:30 06:00 0.50 CIRC MUD AF Circ hole clean @ 393 gpm & 80 rpm. Current mud wt: 9.1+ ppg. Report Date: 10/18/2008 Job Category: DRILLING 24 Hr Summary Circ. hole clean. POOH to 1882'. Service rig. RIH to 4220'. Drill 04220' -4639' (Lost 20 bbl fluid). Spot 50 bbl LCM pill. POOH 12 stds. Monitor losses w/ build 50 bbl mud volume & 50 bbl LCM pill. RIH (/3850'- 4176'. Repair hydraulic hose on control loop. RIH to 4639'. Drill f/ 4639'4642' (Lost 51 bbl fluid). Spot 50 bbl LCM pill through circulating sub. Monitor well. POOH 12 stds to let pill soak. Current bit depth @ 4360'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status , Code Comment 06:00 06:30 0.50 CIRC MUD AF Circ. clean(total CBUX3). 8ORPM 395GPM. 06:30 09:00 2.50 TRIP DP AF PJSM. POOH w /5" DP to 1882'. Hole in good condition no tight spots. 09:00 10:30 1.50 TRIP DP AF PJSM. Service top drive, carrier, crown, and blocks. Change leaking hydraulic hose for top drive robotics. Monitor well on trip tank while at CSG shoe losses 1BPH. 10:30 13:00 2.50 TRIP DP AF PJSM. RIH to 2020'. Hole in good condition no tight spots. 13:00 18:00 5.00 DRILL ROT AF Drill 8 112" drop section F/2020'to 4545' ART= 1.5hrs AST= 1.5hrs P/U 120K S/O 80K Rot 94K TO 7 -8K Ft -lb 6ORPM 390GPM 850psi 18:00 20:00 2.00 DRILL ROT AF Drill 8 -1/2" drop section 04545' -4639' 393 gpm, 1050 psi, wob 5 -10 klbs, 60 rpm, tq 7 -8 kft -Ibs, p/u 120 klbs, s o bs, rot wt 94 klbs. ART: 0.5 hrs. AST: 0.5 hrs.Took sudden 20 bbl loss. P/U off bottom. Monitor well. 15 bph static losses. 20:00 21:30 1.50 PUMP LCM TA NDLC Pull up & rack back 1 std. Spot 50 bbl LCM pill @ 4550' (40 bbls water, 2 sx FIo -vis, 2 sx Poly -pac, 22 sx KCL, 40 ppb SafeCarb 4U, 10 ppb G -seal, 15 ppb Mix II med., 5 ppb Nut plug med.). Lost 50 bbls while pumping pill. Monitor well. 12 bph static losses. Total losses: 110 bbls. 21:30 22:30 1.00 TRIP DP TA NDLC POOH 12 stds (700) slowly f /4550'- 3850'. Lost 4 bbls. 22:30 01:30 3.00 MIX LCM TA NDLC Mix 50 bbl LCM pill w/ 40 bbl water, 2 sx Flo-vis, 2 sx Poly -pac, 22 sx KCL, 40 ppb SafeCarb 40, 15 ppb G -Seal, 20 ppb Mix II med., 5 ppb Nut plug med., 9.6 ppb M -I Seal fine, 3 ppb Magma -Fiber reg, 2 ppb Magma -Fiber fine. Mix 50 bbls new flo -pro mud. Stage pumps up to 325 gpm for 30 min. No losses. 01:30 02:00 0.50 TRIP DP TA NDLC RIH 5 stds f13850'- 4165'. Blew out hydraulic hose on tong loop. 02:00 02:30 0.50 REPAIR RIG TA MSHS Change out hydraulic hose on tong loop. 02:30 03:00 0.50 TRIP DP TA NDLC Cony RIH f/ 4165'- 4639'. No losses. 03:00 03:30 0.50 DRILL SLID TA NDLC Drill ahead f/ 4639' -4642' @ 310 gpm. Losing fluid @ 100 bph. Shut down. Monitor well. Static losses: 5 boil ART: 0 hrs, AS f: 0.1 hrs. 03:30 05:30 2.00 PUMP LCM TA NDLC Spot 50 bbl LCM pill through circulating sub. Lost 26 bbls while pumping pill. Monitor well. No static lossses. Total losses: 50 bbls 05.30 06:00 0.50 TRIP DP TA NDLC POOH 12 stds slowly to let LCM pill soak. Current depth @ 06:00 hrs = 4360' Report Date: 10/19/2008 Job Category: DRILLING 24 Hr Summary POOH to 3742(CCV @3588). Observe well static losses 1.2BPH. Circ. 360GPM with 2 -3BPH losses. Drop ball and close CCV tool(cycle#1). RIH wash last 40' to bottom @ 4642'. Drill 4642 -4652 with no losses. Circ. at reduced rate while waiting for shakers to clear of LCM. Drill F /4652'to 5180'. Slug active pit w/ LCM. Circ @ reduced flow rate while build 2 x 50 bbl batches mud. Control drill f! 5180'-5294'@ 50 -60 fph w1275 gpm. www.peloton.com Report Printed: 2/19/2009 • • Marathon Operations Summary Report Oil Company Well Name: KENAI UNIT 22 -6X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TRIP DP TA NDLC PJSM. POOH to 3742'(3588 circ. valve). 07:00 10:30 3.50 CIRC MUD TA NDLC Flow check well. Static losses 1BPH. Circ. and stage up pumps to 360GPM 295psi. Screened down on shakers to all 200's to be able to pump at 360GPM and keep mud an shakers due to large volume of LCM in returns. 10:30 11:30 1.00 TRIP DP TA NDLC Drop ball and close CCV tool(cycle#1). RIH wash last 40' to 4642'. 11:30 12:00 0.50 DRILL SLID AF NDLC Slide drill F/4642' to 4652'. No losses. 12:00 13:00 1.00 CIRC MUD TA NDLC PJSM. Circ. out LCM pill at reduced rate to prevent losing mud over shakers. 13:00 18:00 5.00 DRILL ROT AF Directional drill 8.5" drop section F/4652' to 4852' ART =.9hrs AST= 2.4hrs P/U 130K S/0 85K ROT 105K 6ORPM 8 -9K Ft -lb TQ 350GPM 950psi. Control drill @ 100 fph w/ 350 gpm. 10:00 00:00 6.00 DRILL ROT AF Drill 8 -12" drop section f/ 4852-5104' @ 350 gpm, 900 psi, wob 5 -10 klbs, 60 rpm, tq 7 -8 kft-lbs, p/u 130 klbs, s/o 85 klbs, rot wt 85 klbs. ART: 0.9 hrs. AST: 3.2 hrs. No static losses. 00:00 01:30 1.50 DRILL ROT AF PJSM: Drill 8 -12" drop section f/ 5104'-5180'@ 350 gpm, 900 psi, wob 5 -10 klbs, 60 rpm, tq 7 -8 kft-lbs, p/u 130 klbs, s/o 85 klbs, rot wt 85 klbs. ART: 0.9 hrs. AST: 3.2 hrs. Losing fluid @ 70 b h�No static losses. Well breathing. Gained 8 bbls. 01:30 03:00 1.50 MIX MUD TA NDLC Slug active w/ 5 sx Mix 11 fine, 5 sx Mix 11 med, 5 sx G -Seal & 3 Sx Nut plug. Build 2 x 50 bbl batches mud. Circ @ reduced rate of 197 gpm. Dynamic losses 35 bph. Monitor well. Hole breathing. Gained 8 bbls. 03:00 06:00 3.00 DRILL ROT AF Drill 8 -1/2" vertical hole f/5180'- 5294'. Control drill @ 50 -60 fph @ reduced flow rate of 275 pgm in attempt to reduce dynamic losses w/ 700 psi, wob 2 -5 klbs, 60 rpm, tq 7 -9 kft-lbs, p/u 140 klbs, s/o 90 klbs, rot wt 113 klbs. ART: 18 hrs. AST: 0.4 hrs. Dynamic losses 35 bph. Monitor well. Hole breathing. Gained 7.8 bbls in 5 min. Daily Operations Report Date: 10/20/2008 Job Category: DRILLING 24 Hr Summary Drill 8 -12" vertical hole f/ 5294' -5484' (lost circ). Circ while slug active pit w/ LCM. Cont drill f/ 5484' -5543' (lost circ). Circ while slug active pit w/ LCM. Build mud volume. Cont drill f/ 5543' -5644' (lost circ). Open circulating sub & spot 50 bbl LCM pill. POOH f/ 5644'- 4670'. Build 235 bbls mud volume. Mix 50 bbl LCM pill. Close circ sub & circ through bit to check LCM pill integrity (ok). RIH f/ 4670'- 5610'. Wash down f/ 5610 to clean hole of LCM pill remains.Circ w/ clean shakers from blinding off. Drill 8-1/2" vertical hole f/ 5644'- 5651'. Repair pump #1 & suction line on pump #3 @ 06:00 hrs. Ops Trouble L_ Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 11:30 5.50 DRILL ROT AF Drill 8.5" vertical hole F/5294' to 5484'. ART= 2.2hrs AST= 1.2hrsP /U 150K 5/0 90K Rot 120K60RPM 8 -12WOB 12 -13K TQ 315GPM 750psi. Control drilling due to reduced flow rate. Lost circulation @ 5484' while back reaming after stand was drilled down. Well flowing on connections(breathing) Lost total /5 bbls. 11:30 12:30 1.00 CIRC MUD TA NDLC PJSM. Stage pumps up slowly to 280GPM and CBU while add 3sxs Mix 2 Med, 3sxs Mix2 Fine, 3sxs G -seal to the suction pit(pit#3). Well flowing on connections(breathing) _ 12:30 14:00 1.50 DRILL ROT AF Drill 8.5" vertical hole F/5484'to 5543' ART= 1.Ohrs AST =Ohrs 8 -10WOB 6ORPM 12 -13K Ft -lb TQ 280GPM 650psi. Losses to formation 125BPH. Control drilling 75ft /hr due to reduced flow rate. Well flowing on connection(breathing). Lost total 100 bbls. 14:00 15:00 1.00 CIRC MUD TA NDLC Flow check well while increase LCM in suction pit. Well flowed 2.5bbls minutel , 1.5bbls minute2, .9bbls minute3, .8bbls minute4, .6bbls minutes. Added 3sxs nut plug med, 5sxs G -seal, 5sxs mix 2 fine, 5sxs mix 2 med. Spot mud into annulus. 15:00 15:30 0.50 MIX MUD TA NDLC Increase pit volume while letting LCM soak. 15:30 18:30 3.00 DRILL ROT AF Drill 8.5" vertical hole F15543' to 5644'. ART= 1.8hrs AST =Ohrs P/U 150K 8/0 90K Rot 120K 6ORPM 5 -10WOB 12 -13K ft-lb 295- 315GPM 700 -850 psi. Control drilling 50- 60ft/hr due to reduced flow rate. Well flowing on connection(breathing). Lost complete returns @ 5644'. P/U off bottom to spot LCM pill. Lost total 35 bbls. 18:30 19:30 1.00 SPOT PILL TA NDLC Drop ball & open circulating sub. Spot 50 bbl LCM (40 bbl water, 2 sx Flo -vis, 2 sx Poly -pac, 28 sx KCL, 15 ppb SafeCarb 250, 15 ppb G -Seal, 20 ppb Mix II med., 5 ppb Nut plug med., 9.6 ppb M -I Seal fine, 3 ppb Magma -Fiber reg, 3 ppb Magma -Fiber fine). Lost total 200 bbls. Monitor well. Well breathing. Gained 8 barrels. www.peloton.com Report Printed: 2/19/2009 • At Marathon Operations Summary Report M Jw Oil company Well Name: KENAI UNIT 22 -6X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 19:30 21:00 1.50 TRIP DP TA NDLC POOH f/ 5644 4760'. No tight spots. Lost 4 bbls on trip. 21:00 00:00 3.00 MIX MUD TA NDLC Build 235 bbls mud volume. Mix 50 bbl LCM pill (40 bbl water, 2 sx Flo -vis, 2 sx Poly -pac, 28 sx KCL, 15 ppb SafeCarb 250, 15 ppb G -Seal, 20 ppb Mix 11 med., 5 ppb Nut plug med., 9.6 ppb M -I Seal fine, 3 ppb Magma -Fiber reg, 3 ppb Magma -Fiber fine). Monitor well. Static losses gradually stopped. Lost 12 barrels while mixing. 00:00 01:30 1.50 MIX LCM TA NDLC Can't mixing 50 bbl LCM pill while stage flow up to 400 gpm w/ no losses. Dropped ball to close circulating sub. Staged flow up to 350 gpm w/ no losses. Monitor well. Well breathing. Flowed back 8 bbls. 01:30 02:00 0.50 TRIP DP TA NDLC RIH f/ 4670'- 5610'. No ledges. No losses. 02:00 05:30 3.50 CIRC MUD TA NDLC Wash down f/ 5610 5644'. Circ hole clean of LCM material. Shakers blinding off. C/O shaker screens f/ 200's to 165's. Can't circ @ reduced rate to prevent losing mud over shakers. 05:30 06:00 0.50 DRILL ROT Drill 8 -1/2" vertical hole f/ 5644 275 gpm. Control drill @ 50 fph w/ 700 psi, wob 2 -5 klbs, 60 rpm, tq 12 -13 kft -lbs, p/u 150 klbs, s/o 90 klbs, rot wt 120 klbs. ART: 0.2 hrs. AST: 0 hrs. No dynamic losses to hole. Still losing some mud over shakers. Pump #1 down & blew suction line on pump #3 © 06:00 hrs. Daily Operations Report Date: 10/212008 Job Category: DRILLING 24 Hr Summary Repair suction line on pump #3. Drill 8 -1/2" vertical hole f/ 5651' - 5654'. C/O shaker screens f/ 165 to 200 mesh. Circ & condition mud. Drill f/ 5654'- 5725'. Lost circulation @ 5725'. Max losses 120BPH. Open CCV (cycle#3)and spot 50bb1 LCM pill#1. Begin filling annulus with w /fresh water. Monitor well while mixing LCM pill#2. Losses reduced f /120BPH to 12BPH. Spot 63bb1 LCM pill#2. Monitor well while mix LCM pill#3. Losses reduced F/9BPH to 78PH. Build mud volume. Losses reduced f/ 7 bph to 3 bph. Spot 54 bbl LCM pill #3. POOH 14 stds f/ 5725 4855'. Drop ball & open circulating sub. POOH f/ 4855'- 2520'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 REPAIR RIG TA MSFL Repair suction line on mud pump #3. Trouble shoot hydraulic pump problem pump#1. 08:30 09:00 0.50 DRILL ROT Drill 8 -1/2" vertical hole f/ 5651' -5654' @ 275 gpm. Control drill @ 50 -60 fph w/ 600 psi, 60 rpm, tq 12 -13 kft -lb, web 2 -5 klb, p/u 150kibs, s/o 90 klbs, rot wt 120 klbs. ART 0.2 hrs. No losses to formation. Losing mud over shakers. 09:00 09:30 0.50 CIRC MUD C/O shaker screens f/ 165 to 200 mesh. Circulate & condition mud system to handle shakers. 09:30 11:30 2.00 DRILL ROT Drill 8 -1/2" vertical hole f/ 5654' -5725' @ 275 gpm. Control drill @ 50 -60 fph. ART= 1.6hrs AST =O P/U 155K S/0 90K Rot 120K WOB 5 -10K 6ORPM 275GPM 650psi. 11:30 14:00 2.50 PUMP LCM TA NDLC PJSM. Lost circulation a, 5725'. Max losses 120BPH. Drop ball and open CCV(cycle#3). Drop BHA shut off ball and pump 50bb1 LCM p4 w /15ppb SC 250, 15ppb G -seal, 20ppb Mix 2 med, 5ppb Nut plug med, 9.6ppb MI seal fine, 3ppb Magma fiber reg, 2.5ppb Magma fiber fine. Spot pill in annulus @ 125GPM. No returns while spotting pill. Fill annulus with fresh water. 14:00 16:00 2.00 FLOW CHEK TA NDLC Monitor well while mix LCM pill. Cont. to fit annulus with fresh water(total 106bbls). Losses decreased f /120BPH to 12BPH. 16:00 18:00 2.00 PUMP LCM TA NDLC Pump 63bb1 LCM pill w/25ppb SC 250, 15ppb G -seal, 20ppb Mix 2 med, 5ppb Nut plug med, 9.6MI seal fine, 4.8ppb Magma fiber reg, 5ppb Magma fiber fine. Spot in annulus no returns reduce rate to 65GPM partial returns while pumping last 10bbls of displacement. Total losses since 11:30am 457bbis mud 106bbis water. 18:00 01:00 7.00 MIX MUD TA NDLC PJSM: Mix 54 bbl LCM pit (40 bbl water, 2 sx Flo -vis, 2 sx Poly -pac, 28 sx KCL, 25 ppb SafeCarb 250, 12 ppb G -Seal, 20 ppb Mix II fine, 10 ppb Nut plug med, 8 ppb M -I Seal fine, 5 ppb Magma -Fiber reg, 5 ppb Magma -Fiber fine). Build 300 bbls mud volume. AU while monitor well. Static losses reduced f/ 7 bph to 3 bph. 01:00 02:00 1.00 PUMP LCM TA NDLC Spot 54 bbl LCM pill @ 2.5 bpm. Lost 12 bbls mud while displacing pill. Confirm water displaced from annulus hole full of mud. Static losses: 3 bph. 02:00 03:00 1.00 TRIP DP TA NDLC POOH f/ 5725 4855'. Slick hole. No problems. 03:00 03:30 0.50 PUMP LCM TA NDLC Drop ball & close circulating sub. Monitor static losses: Slight seepage. 03:30 06:00 2.50 TRIP DP TA NDLC POOH f/ 4855' - 2520'. Hole slick. No problems. www.peloton.com Report Printed: 2/19/2009 1 Marathon Operations Summary Report Oil Company Well Name: KENAI UNIT 22 -6X Daily Operations Report Date: 10/22/2008 Job Category: DRILLING 24 Hr Summary Cont. POOH to 150'. LID CCV tool. Service rig and adjust brakes. P/U new circ sub & ball catcher. Test run pump #1. RIH to 4850'. Circ & condition mud until LCM cleans up over shakers. RIH to 5549'. Wash down 3 stds to bottom in attempt to flow @ 270 gal minimum. Losing returns. Open circ sub. Spot 25 bbl LCM pill. Pooh 9 stds to 5200'. Circ & condition mud until shakers & hole can handle 400 gpm. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 0E00 08:30 2.50 TRIP DP TA NDLC POOH to 150' . L/D used CCV tool. 08:30 09:30 1.00 SERVIC RIG AF Service rig. 09:30 11:30 2.00 TRIP BHA TA NDLC P/U new CCV tool. RIH. 11:30 12:30 1.00 TRIP DP TA NDLC PJSM. Fill DP and break circulation. Test run pump#1. 12.30 15:00 2.50 TRIP DP TA NDLC Cont. RIH w /DP to 4850'. 15:00 18:00 3.00 CIRC MUD TA NDLC Orient directional tools to high side. Reciprocate pipe and circ. staging up pumps to avoid losses over the shakers. LCM blinding shaker screens. 0/0 to 165 screens on both shakers in attempt to get a higher flow rate accross the shakers. Max flow rate 100gpm with some losses. Change one shaker back to 200 shaker screens. Still not able to get flow rates above 100GPM with out losses. 18:00 20:00 2.00 CIRC MUD TA NDLC Cont circ & condition mud until shakers can handle mud. 0/0 shaker screens to 165 x 120's. Shakers handling 160 gpm. No fluid losses to formation. 20:00 20:30 0.50 TRIP BHA TA NDLC RIH f/4850'- 5549'. No ledges. 20:30 01:30 5.00 CIRC MUD TA NDLC Wash down last 3 stds down slowly f/ 5549'- 5720'. Shakers continuously blinding off with LCM. Rotate & reciprocate pipe in attempt to clean out LCM. Reduce pumps f/ 160 gpm to 35 gpm. Pump fluid from cuttings tank back into possum belly. Increased pump rate to 160 gpm. Hole took sudden 12 bbl drink. Turn off pumps. Monitor well. Static losses = 5 bph. Stage pumps up to 30 gpm. Hole took 15 bbls drink. Monitor static losses = 10 bph. Stage pumps up to 160 gpm & hole took 28 bbl drink. Static losses 3 bph. Lost total 133 bbls. 01:30 03:00 1.50 PUMP LCM TA NDLC Drop ball & open circ sub. Pump 25 bbls of the 50 bbl premixed LCM pill (40 bbl water, 2 sx Flo -vis, 2 sx Poly -pac, 28 sx KCL, 25 ppb SafeCarb 250, 12 ppb G -Seal, 7.5 ppb each Mix II finelcoarse, 7 ppb each Nut plug med /coarse, 8 ppb M -I Seal fine, 5 ppb Magma -Fiber reg, 5 ppb Magma -Fiber fine). Shakers blinding off with LCM. Lost total 80 bbls to both shakers & downhole while pumping pill. Monitor well. Static. 03:00 03:30 0.50 TRIP DP TA NDLC POOH f/ 5725'- 5200'. Hole slick. 03:30 06:00 2.50 CIRC MUD TA NDLC Drop ball & close circ sub. Stage pumps up to 120 gpm. Shakers blinding off w/ LCM. Reduce flow to 60 gpm. Stage pumps as shakers can handle mud. 100 gpm @ 06:00 hrs. Report Date: 10/232008 Job Category: DRILLING 24 Hr Summary Circ. and condition mud @ 100GPM having to pull LCM off of shakers with squeegees. 0/0 end shakers screens with very course (modified)screens. Stage pumps up to 300GPM. Circ. entire mud system.RIH, circ.f /5231' 5295' w/ no losses, circ and build LCM pill, wash f/5295 5725', no losses, drill f/5725- 5758', Start losing fluid 240 bbls,spot pill, POOH f/ 5758'- 5378'Make mud volume, LCM pill, static losses 1.5 BPH, RIH t/ 5758', drill f/5758'- 5863'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:00 4.00 CIRC MUD TA NDLC Circ. and condition mud @ 5170' to 5231'w/ max 100GPM. Had to shut down to wash shaker screens due to LCM blinding the shaker screens. Attempt to increase flowrate but unable to keep shaker screens from blinding. 10:00 13:00 3.00 CIRC MUD TA NDLC Replaced front screens on shakers with screens that had the fine mesh layers stripped off(only the bottom coarse layer remaining). Slowly stage pumps up to max 350GPM with no losses. 13:00 14:00 1.00 CIRC MUD TA NDLC 0/0 front shaker screens on both shakers to 165's. Circ @ 100 gpm. LCM blinding screens. Change back to the coarse shaker screens. RIH to 5295'. 14:00 15:30 1.50 CIRC MUD TA NDLC Circ. 300GPM F/5231'to 5295'w/no losses. 15:30 17:00 1.50 MIX LCM TA NDLC Cont. Circ. 300GPM 2ORPM F/5231' to 5295' and build 50bb1 LCM pill w/2.5ppb Flo Vis, 2sppb Poly pac, 22ppb KCL, 2ppb Asphasol, 25ppb SC 20, 25ppb SC 40, 50ppb SC250, 10ppb G -seal, 4ppb Mix 2 fine. 17:00 18:00 1.00 CIRC MUD TA NDLC PJSM. Wash F/5295' to 5725'200GPM 2ORPM no losses. 18:00 18:30 0.50 DRILL ROT TA NDLC Drill 8.5" vertical section F/5725' to 5758' ART =.4hrs loses 250BPH while drilling F/5733' to 5758'. P/U 150K S/0 90K Rot 115K 50RPM WOB 5 -15K TQ 10-11K Ft -lb. www.peloton.com Report Printed: 2/19!2009 • • Alli Marathon Operations Summary Report ' Oil Company Well Name: KENAI UNIT 22 -6X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 18:30 20:00 1.50 SPOT PILL TA NDLC Spot 50bbI LCM pill w/2.5ppb Flo Vis, 2sppb Poly pac, 22ppb KCL, 2ppb Asphasol, 25ppb SC 20, 25ppb SC 40, 50ppb SC250, 10ppb G -seal, 4ppb Mix 2 fine. Lost 97bbls while spotting pill. Total losses 250bbls while drilling and spotting pill. 20:00 21:00 1.00 TRIP DP TA NDLC PJSM; POOH f/5758'-5358'. Up wt. =180K do wt. =92K Rt wt. =122K 21:00 04:00 7.00 MIX LCM TA NDLC PJSM. Mix 200 bbls. volume and 50 bbl. LCM pill 2.5 sx. Flo vis. , 2 sx. polypac, 22 sx. KCL, 2 sx. Asphasol, 25 sx. SC 20, 25 sx. SC 40, 50 sx. SC 250 10 sx. G -seal, 4 sx.Mix 2 Med., monitor well static losses 1 -2 BPH.RIH T/5758' 04:00 06:00 2.00 DRILL ROT AF Drill 8.5" vertical section F/5758'-5863' ART= 1.2hrs. Up wt. =150K Dn wt. =90K Rt wt. =115K Tq. =10 -11 K No losses. 300 GPM 154 stks.= 600psi Daily Operations Report Date: 10/24/2008 Job Category: DRILLING 24 Hr Summary Drill F/5863' to 5989'. Lost circulation(partial returns) . Spot LCM pill. Monitor well static losses decreased to 4BPH. Drop rabbit and POOH(SLM). Stop and monitor static losses @ 5791'. Static losses 1 BPH. Cont. POOH. L/D BHA.Srev. rig, P/U logging tools, RIH. CBU. Deploy logging tools. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Cornment 06:00 08:00 2.00 DRILL ROT AF Drill 8 1/2" vertical hole F/5863' to 5989'. Lost circulation @ 5989'. P/U 175K 5/0 90K Rot 126K 50RPM 15 -20K WOB 11 -12K Ft -lb TQ 320GPM 850psi. 08:00 09:30 1.50 SPOT PILL TA NDLC Spot 50bbls LCM pil W/2.5ppb FIo Vis, 2ppb Poly Pac, 22ppb KCL, 2ppb Asphasol, 25ppb SC20, 25ppb, SC40, 50ppb SC250, 10ppb G -seal, 4ppb Mix 2 Fine, 4ppb Mix 2 Med. 09:30 10:00 0.50 FLOW CHEK TA NDLC Flo check. Losses 18BPH and reduced to 4BPH in 30min. Total mud lost 150bbIs since lost circulation @ 5989'. ART 1.5 10:00 15:30 5.50 TRIP DP AF NDLC Drop 2 3/8" rabbit and POOH to 5791. FIo check losses 1 BPH. Cont. POOH(SLM, no correction). Hole in good condition. 15:30 18:30 3.00 TRIP BHA AF PJSM. Cont. POOH w/ BHA. LID bit, motor, MWD, string stabilizer. Rack back 1 stand monel CSDP. 18:30 19:30 1.00 SERVIC RIG AF PJSM; Service rig, Top drive, blocks, carrier clutch.Monitor well static losses 1/2 bbls. per hr. 19:30 22:00 2.50 PULD LOG AF PJSM; Pick up 3 1/2 drill pipe and Quad combo shuttle logging tools. 22:00 03:30 5.50 TRIP DP AF PJSM; RIH with 5" drill pipe to 875' run pressure test, RIH to 2006' run pressure test on tools.RIH to 5865' wash down to 5989' POOH to 5865' 03:30 04:30 1.00 CIRC MUD AF Circ. bottoms up. Lasses 1 BPH 04:30 05:00 0.50 LOG OH AF Load messenger dart and pump down, deploy Quad combo logging tool. 05:00 06:00 1.00 LOG OH AF Pump dry job, POOH with Quad combo.f /5865'. All fluid for logging run pumped through a DP screen. 06:00 06:00 Report Date: 10/24/2008 Job Category: DRILLING 24 Hr Summary Cont. POOH w /Quad Combo on shuttle. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:30 4.50 LOG OH AF Cont. to POOH w /Quad Combo on shuttle. 08:30 12:00 1.50 LOG OH AF PJSM. L/D 3.5" DP and shuttle equipment. RID Weatherford Quad Combo logging tools. 12:00 14:30 2.50 REPAIR 'RIG AF PJSM. While wait on log data to be processed repair hydraulic leak on top drive grabber box. 14:30 15:00 0.50 SLPCUT DLIN AF PJSM. While wait on log data slip drilling line. 15:00 15:30 0.50 SERVIC RIG AF While wait on log data service rig. 15:30 16:30 1.00 PULD BHA AF L/D 2 joints 6 1/4" CSDP from derrick. Move to completion operations @ 16:30 hrs 10/24/2008. Report Date: 10/25/2008 Job Category: DRILLING 24 Hr Summary M/U 8.5" mill tooth bit and RIH.CBU spot lubetex in open hole, POOH LID 5" drill pipe. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 16:30 17:30 1.00 TRIP BHA AF Moved to completion operations 16:30 10/24/2008. M/U 8.5" mill tooth bit and bit sub w /float. RIH w /HWDP. 17:30 22:00 4.50 TRIP DP AF PJSM; Cont. RIH with 5" drill pipe. to 5989'.Wash f/ 5900' - 5989', 15' fill. 22:00 00:30 2.50 CIRC MUD AF PJSM; Circ bottoms up spot lubetex in open hole, pump satecarb pill, check for flow.Up wt. =167K Dn wt. =90K Rt wt. =120K No gains no losses www.peloton.com Report Printed: 2/19/2009 • • ' (Ki) Marathon Operations Summary Report Oil Company Well Name: KENAI UNIT 22 -6X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 00:30 06:00 5.50 TRIP DP AF PJSM;POOH laying down 5" drill pipe, 5" HWDP, Hole taking proper hole fill. Daily Operations Report Date: 10,2612008 Job Category: DRILLING 24 Hr Summary Pull wear bushing. Test upper rams on 5 12" CSG. R/U CSG tools. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 RURD CSG AF Pull wear bushing. 06:30 08:00 1.50 TEST BOPE AF PJSM. Run test plug and 5.5" test joint. Test variable rams to 25012000psi. RID DP handling tools and R/U CSG tools. 08:00 11:00 3.00 RURD CSG AF PJSM. R/D DP spinners, manual DP tongs, C/O to long bales and 5.5" CSG elevators. R/U CSG tongs.Static losses 1 BPH 11:00 12:00 1.00 RUN CSG AF PJSM. M/U shoe track and Bakerlok. Circ. through shoe track. 12:00 15:00 3.00 RUN CSG AF PJSM with crew coming an tour. Run 5.5" 17PPF L -80 Butt -mod CSG to 2000'. 15:00 15:30 0.50 CIRC MUD AF Circ. CSG @ 9 518" shoe. 15:30 20:30 5.00 RUN CSG AF Cont. Run 5.5" CSG (total 146 Jnts) shoe @ 5989' FC @5903'. 20:30 21:30 1.00 CIRC MUD AF Circ , 125 stks =300 psi 248 GPM 21:30 01:00 3.50 REPAIR EQIP TA CPEQ Cement VMT#1 motor froze would not start. Transfer cement from bulk tank to cement silo. Prep to mix 129 bbls. cement on the fly. Also mix 110 bbls.cement in VMT#2. Cont. to circ. CSG. 01:00 01:30 0.50 SAFETY MTG AF Held safety meeting with BJ for cement job. Cont. to circ. CSG. 01:30 05:00 3.50 PUMP CMT AF Pump 50 bbls.inhibited mud ahead of cement , rig up cement head, test lines to 3000 psi, drop first plug with 2 bbls.water, pump 26 bbls. 10 ppg. seal bond sweep, mix and pump 129 bbls. 10.5# cmt. on the fly, then pump 110 bbls 10.5# cmt from batch mixer. Pump rate 4 bbls. min._,Pump 239 bbls. Class G +. 47% LW -6, 15% BA -90, 5% CD -32, .4% SMS, 1.2% FL -63, .05% Static Free, 1 ghs FP -6L. 10.5 ppg., Yield 3.307 cuft. /sk, 12.637 galisk, 4:05 Thicking time. Wash up cement lines. Drop top plug and displace w /136bbIs 6 %KCL brine. Bump plug w /500psi over last displacement pressure. Bled back .5bbls and floats held OK. Cmt.in place @ 04:45hrs. Recipicate pipe thru cement iob. 100% returns. Up wt. =110K DN wt. =70k 05:00 106:00 1 1.00 WAITON CMT AF Wait on cement and monitor annulus. Report Date: 10/27/2008 Job Category: DRILLING 24 Hr Summary While WOC. Empty pits. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 WAITON CMT AF While WOC: PJSM. Empty pill pitts. Flush Mud Pump 1,2 and 3. Flush choke line, kill line, BOP stack, and mud lines. Load up rig equipment and mud products on trailers. Clean trip tank. Blow down mud pumps, choke line, kill line, and mud lines. Prep to pull and rebuild mix pump. 12:00 18:00 6.00 WAITON CMT AF While WOC: Cont. to empty pits. Inspect 5" DP and separate out joints with short tool joints.61 good joints, 248 with short tool joints, 309 total. 18:00 04:30 10.50 WAITON CMT AF WOC,Work on rig floor lights, rig down shock hoses for pumps 1,2,3, lay down mouse hole, rig down mud manifold, rig down choke hose, and kill line. Rig down hanson tank, rig down poor boy gas buster, move cuttings tank. 04:30 06:00 1.50 CUT CSG AF PJSM; Nipple down and pick up BOP to set 5 1)2" csg. slips with 120K string wt. Report Date: 10/28/2008 Job Category: DRILLING 24 Hr Summary Install,pack off N/U tree and test to 5000psi Test 5 1/2 casing 1500psi/30min test good. Rig down GD -1. Ops Trouble l Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 13:30 7.50 NUND TREE AF Make Final cut on 5 1)2 casing stub, Install pack off and test to 1500psi/ 10 min. Test good. Nipple up temp tree and test void to5000psi 10min./ Test tree to 5000psi/ 10min tests good. Freeze protect tree and wellhead 13:30 14:30 1.00 TEST CSG AF Test 5 12 casing 1500psi 30min Test good :30 02:30 12.00 RURD RIG AF PJSM : UD long bails R/D top drive and service loop. R/D torque tube. Move drillpipe off location. rig down and move out pump #3. Complete cleaning of hanson tank. RID beaver slide. Load out and ship mud products. Pull electrical and service lines from rig floor. R/D pits and pumps. Pull trip tank out of sub. Pull floor plates on rig floor. Scop down mast www.peloton.com Report Printed: 2/19/2009 • • / i\ Marathon Operations Summary Report MI Oil Company Well Name: KENAI UNIT 22 -6X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 02:30 06:00 3.50 KURD RIG AF PJSM : Discuss hazards with crane operations. Crane down back wind walls and stairways. Remove dog and choke houses. Remove wind walls and gray iron. Crane down fuel tank Daily Operations Report Date: 10!2912008 Job Category: DRILLING 24 Hr Summary RID GD -1 Release rig to KU21 -6RD Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF Rig down GD -1 , PJSM; Finish crane work, PJSM Prep to lay down derrick, RID turnbuckles, prep carrier for move, Pull electric wires for pump room, RiD and service boiler, Move parts house and mech. shop, carrier, mud boat, stand by gen., Install gooseneck on sub base and move off well. Release rig to KU21 -6RD @ 1200 hrs. Report Date: 11126/2008 Job Category: R &M MAINTENANCE 24 Hr Summary MIRU Vetco set tree, pull BPV Dps Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 SAFETY MTG AF Held PJSM and obtained work permit. 07:00 12:00 5.00 RURD PIPE AF MIRU boom truck pull temp casing valve. Landed tree. RIH changed the BPV to double flapper check. Ice in tree valve. Used methanol to free up BPV. Pulled BPV. 12:00 15:00 3.00 RURD PIPE AF Set double check. PT to 5000 psig. Held for 15 minutes. Good test. RD Vetco. Tree ready for service. Vetco left lease. Report Date: 11,272008 Job Category: R &M MAINTENANCE 24 Hr Summary MIRU Expro to run CBL Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 SAFETY MTG AF Held safety meeting and discussed JSA for todays tasks. 07:00 09:00 2.00 RURD ELEC AF Spot up equipment. RU lubricator to run 4.625" GR. MU open top barrel to take displacement fluid from wire while running in well with GR. 09:00 11:00 2.00 WORK ELEC AF Open well RIH tagged fill at 5871' EIM. Correlated depth to Weatherford Compact Quad Compbo log dated 10- 24 -08. 11:00 14:00 3.00 WORK ELEC AF MU CBL logging tool. RIH pull correlation strip and calibration strip in free pipe around 1300'. Continue down hole. Made logging run at 30 FM to above cement top at 2000'. 14:00 15:00 1.00 RURD ELEC AF Continue log up to 1800'. POOH with log tool string. RD electric line unit. Expro left lease. Cleaned up around well head. Report Date: 1118/1009 Job Category: COMPLETION 24 Hr Summary MIRU BJ coiiled tubing unit and associated equip. Test BOP 250 1 4500. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 08:00 1.00 SAFETY MTG AF Hold PJSM. Discuss BJ safety checklist andfJSA plus ASRC JSA. Assign tasks and issue permit. 08:00 13:00 5.00 RURD COIL AF Spot and RU coiled tubing equipment. MU to tree. 13:00 14:00 1.00 TEST ROPE AF lest BOP 25014500. Good test. 14:00 15:30 1.51] SECURE WELL AF secure well tor nig - ht. Close permit, sign out and leave location. Report Date: 11192009 Job Category: COMPLETION 24 Hr Summary Reverse completion fluid from well to 5900'. RD and release CT unit. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 07:45 0.75 SAFETY MTG AF Hold PJSM. Discuss BJ safety checklist andf JSA plus ASRC JSA. Assign tasks and issue permit. 17:45 08:45 1.00 RURD COIL AF Start equipment. Stab on injector. Prime up N2 pump. 08:45 09:00 0.25 TEST EQIP AF Shell test to 1000 psi. 09:00 10:00 1.00 RUNPUL COIL AF Open well and start RIH pumping n2 at 500 scf/min down well with returns from CT. 10:00 11:30 1.50 RUNPUL COIL AF Water returns to surface. Continue RIH @ 500 scf/min. 11:30 12:45 1.25 RUNPUL COIL AF CTD = 2900'. Pump pressure = 1500 psi. Increase N2 to 750 scf/min. Cont RIH. www.peloton.com Report Printed: 2/19/2009 • • Marathon Operations Summary Report w „Oil Company Well Name: KENAI UNIT 22 -6X Ops Trouble ` Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:45 13:15 0.50 PUMP N2 AF CTD = 5929' CTMD. Pump pressure is falling. SD N2 and start POH. Max reverse out pressure = 2120 psi. 13:15 14:15 1.00 RUNPUL COIL AF POH. Final returns 127 Bbls. 14:15 16:00 1.75 RURD COIL AF Bleed well to 300 psi. Bleed down CT to 0. Rig back injector and rig down most of location. 16:00 16:30 0.50 SECURE WELL AF Secure well and close permit. Leave location. Daily Operations Report Date: 2/7/2009 Job Category: COMPLETION 24 Hr Summary Perforate 5 1/2" casing from 5504' MD to 5570' MD Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Arrive at pad, sign in and obtain work permit. Spot equipment and hold safety meeting. Topics discussed. Active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area, explosive safety, job assignments, manlift safety, overhead loads, slips, trips, falls, existing hazards under snow. buddy rule, three second rule. 08:30 10:00 1.50 RURD ELEC AF Rig up Expro wireline truck, mast truck, lubricator, BOP's, wireline sheaves, flow tubes and wireline to wellhead. 10:00 12:00 2.00 RUNPUL ELEC AF Correlate collars to Expro CBL/GR /CCL run 26 November 2008. Perforate 5539' to 5570' MD using 3 3/8" HSD 6 SPF guns. Total 31 feet, 186 shots. 12:00 14:00 2.00 RUNPUL ELEC AF Correlate collars to Expro CBI./ GR / CCL . Perforate 5504' to 5539' MD using Expro 3 318" HSD 6 spf perforating guns. 35 feet 210 shots. 14:00 15:00 1.00 PULD PGUN AF Rig down lubricator, BOP's, sheaves, wireline truck and crane unit. 400 15:30 1 0.50 SECURE WELL AF Secure wellhead for evening, turn over to production. www.peloton.com Report Printed: 2/19/2009 • KU 22 -6x Kenai Gas Field Attachment List End of Well Report el Well Schematic Directional Survey Operations Summary Logs • Array Induction TVD • Array Induction MD • Array Induction Vector Processing MD • Photo Density Dual Spaced Neutron MD • Formation Tester MD • Hole Volume Caliper MD • Compensated Sonic MD • Compact Quad Combo QuickLook MD • Dual Radial Cement Bond, Gamma Ray, CCL Compact Disc • Directional Survey • Wireline Log Data • Mud Log Data Actual Wellpath Geographic Report Report Generated 24- Oct -08 at 11:42:32 Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.99996 Field Kenai Gas Field Horizontal Reference Point Slot Facility Pad 34 -31 Verti Ca1 Reference Point Planning (RKB) Slot slot #KU22 -6X MD Reference Point Planning (RKB) Well KU22 -6X Field Vertical Reference Mean Sea Level WetWore KU22 -6X Planning (RKB) to Facility Vertical Datum 80.00 ft Wetipath NaviTrak M W D <147 - 5989'> Planning (RKB) to Mean Sea Level 80.00 ft Wetibore Last Revised 10/15/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Edited Section Origin Y N 0.00 ft • Calculation method Minimum curvature Section Azimuth 144.75° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] Slot. Location 823.81 - 1835.25 60 °28'32.052 "N 151 °16'21.417 "W Facility Reference Pt 60 °28'23.940 "N 151°15'44.801"W Field Reference Pt 60 °27'31.931 "N 151 °16'16.783 "W TVD from Build MD Inclination Azimuth TVD Ftd Ref North East Grid East Grid North Latitude Longitude DLS Tooiface Rate Turn Rate Vert Sect Comments [ft] [% CI tft] [ftl [ft] [ft] tsry ft] [sry ft] [°/1O0ft] [°I rNOOftl MOM [ft] 0.00 0.00 103.08 0.00 -80.00 0.00 0.00 60 °28'32.052 "N 151 °16'21.417 "W 0.00 103.08 0.00 0.00 0.00 147.00 1.29 103.08 146.99 66.99 -0.37 1.61 60 °28'32.048 "N 151 °16'21.385 "W 0.88 49.15 0.88 0.00 1.24 205.00 1.66 116.23 204.97 124.97 -0.89 3.00 60 °28'32.043 "N 151 °16'21.357 "W 0.86 44.93 0.64 22.67 2.46 267.00 2.12 127.59 266.93 186.93 -1.99 4.72 60 °28'32.032 "N 151 °16'21.323 "W 0.95 35.55 0.74 18.32 4.35 327.00 2.67 135.65 326.88 246.88 -3.67 6.57 60 °28'32.016 "N 151 °16'21.286 "W 1.07 35.62 0.92 13.43 6.79 387.00 3.73 146.64 386.79 306.79 -6.30 8.62 60 °28'31.990 "N 151 °16'21.245 "W 2.03 0.54 1.77 18.32 10.12 447.00 5.44 146.81 446.59 366.59 -10.31 11.25 60 °28'31.950 "N 151 °16'21.192 "W 2.85 -3.58 2.85 0.28 14.91 507.00 8.60 145.49 506.14 426.14 -16.38 15.35 60 °28'31.891 "N 151 °16'21.111 "W 5.27 -2.92 5.27 -2.20 22.24 566.00 12.51 144.57 564.13 484.13 -25.23 21.56 60 °28'31.803 "N 151 °16'20.987 "W 6.63 -2.41 6.63 -1.56 33.05 626.00 16.06 144.03 622.26 542.26 -37.25 30.20 60 °28'31.685 "N 151 °16'20.814 "W 5.92 -18.60 5.92 -0.90 47.85 686.00 17.36 142.57 679.73 599.73 -51.07 40.52 60 °28'31.549 "N 151 °16'20.609 "W 2.28 20.50 2.17 -2.43 65.09 746.00 19.39 144.84 736.67 656.67 -66.32 51.70 60 °28'31.399 "N 151 °16'20.386 "W 3.59 22.79 3.38 3.78 84.00 809.00 22.25 147.98 795.55 715.55 - 84.99 64.04 60 °28'31.215 "N 151 °16'20.139 "W 4.87 11.01 4.54 4.98 106.37 873.00 24.80 149.16 854.23 774.23 - 106.79 77.35 60 °28'31.000 "N 151 °16'19.874 "W 4.05 10.02 3.98 1.84 131.85 • 936.00 26.93 149.99 910.91 830.91 - 130.49 91.26 60 °28'30.767 "N 151 °16'19.596 "W 3.43 28.81 3.38 1.32 159.24 999.00 29.97 153.29 966.30 886.30 - 156.91 105.48 60 °28'30.507 "N 151 °16'19.313 "W 5.43 -35.40 4.83 5.24 189.02 1062.00 33.58 148.76 1019.86 939.86 - 185.88 121.59 60 °28'30.221 "N 151 °16'18.991 "W 6.86 -18.93 5.73 -7.19 221.97 1126.00 36.64 147.01 1072.21 992.21 - 217.04 141.17 60 °28'29.914 "N 151 °16'18.600 "W 5.03 -32.95 4.78 -2.73 258.72 1188.00 37.80 145.79 1121.58 1041.58 - 248.27 161.93 60 °28'29.607 "N 151 °16'18.186 "W 2.22 -7.84 1.87 -1.97 296.20 1251.00 39.32 145.46 1170.84 1090.84 - 280.68 184.10 60 °28'29.288 "N 151 °16'17.744 "W 2.43 2.30 2.41 -0.52 335.47 1314.00 41.99 145.62 1218.63 1138.63 - 314.52 207.32 60 °28'28.954 "N 151 °16'17.281 "W 4.24 -3.15 4.24 0.25 376.51 1377.00 45.08 145.38 1264.30 1184.30 - 350.28 231.90 60 °28'28.602 "N 151 °16'16.790 "W 4.91 3.80 4.90 -0.38 419.89 1440.00 47.99 145.64 1307.63 1227.63 - 387.96 257.79 60 °28'28.231 "N 151 °16'16.274 "W 4.63 -2.04 4.62 0.41 465.61 1504.00 50.37 145.53 1349.46 1269.46 - 427.91 285.16 60 °28'27.838 "N 151 °16'15.728 "W 3.72 - 165.98 3.72 -0.17 514.03 1567.00 49.04 145.09 1390.21 1310.21 - 467.42 312.51 60 °28'27.449 "N 151 °16'15.182 "W 2.18 165.23 -2.11 -0.70 562.08 1630.00 48.22 145.38 1431.84 1351.84 - 506.26 339.47 60 °28'27.066 "N 151 °16'14.644 "W 1.35 -25.69 -1.30 0.46 609.36 1693.00 49.31 144.69 1473.37 1393.37 - 545.08 366.62 60 °28'26.684 "N 151 °16'14.103 "W 1.92 91.80 1.73 -1.10 656.73 1757.00 49.29 145.72 1515.10 1435.10 - 584.93 394.31 60 °28'26.291 "N 151 °1613.550 "W 1.22 130.90 -0.03 1.61 705.25 1819.00 49.12 145.98 1555.61 1475.61 - 623.77 420.66 60 °28'25.909 "N 151 °1613.025 "W 0.42 16.36 -0.27 0.42 752.18 1883.00 50.30 146.43 1597.00 1517.00 - 664.34 447.81 60 °28'25.509 "N 151 °1612.483 "W 1.92 -3.39 1.84 0.70 800.98 1946.00 51.76 146.32 1636.62 1556.62 - 705.13 474.93 60 °2625.108 "N 151 °1611.942 "W 2.32 175.78 2.32 -0.17 849.94 2085.00 47.65 146.73 1726.49 1646.49 - 793.53 533.40 60 °2824.237 "N 151 °1610.775 "W 2.97 - 141.39 -2.96 0.29 955.88 2148.00 46.93 145.94 1769.23 1689.23 - 832.06 559.06 60 °2623.857 "N 151 °16'10.264 "W 1.47 164.40 -1.14 -1.25 1002.16 2210.00 46.36 146.16 1811.79 1731.79 - 869.46 584.24 60 °2823.489 "N 151 °16'09.761 "W 0.95 118.28 -0.92 0.35 1047.23 2274.00 46.19 146.60 1856.03 1776.03 - 907.97 609.85 60 °28'23.110 "N 151 °16'09.250 "W 0.56 - 162.68 -0.27 0.69 1093.46 2336.00 45.19 146.16 1899.34 1819.34 - 944.92 634.41 60 °2822.746 "N 151 °16'08.760 "W 1.69 154.09 -1.61 -0.71 1137.80 2399.00 44.77 146.45 1943.90 1863.90 - 981.97 659.12 60 °28'22.381 "N 151 °1608.268 "W 0.74 - 86.14 -0.67 0.46 1182.32 2463.00 44.85 144.97 1989.31 1909.31 - 1019.23 684.53 60 °28'22.014"N 151 °16'07.761 "W 1.63 -39.18 0.12 -2.31 1227.42 2526.00 45.50 144.23 2033.72 1953.72 - 1055.65 710.41 60 °28'21.655 "N 151 °1607.244 "W 1.33 128.96 1.03 -1.17 1272.10 2588.00 44.85 145.38 2077.42 1997.42 - 1091.58 735.76 60 °28'21.302 "N 151 °16'06.739 "W 1.68 -58.97 -1.05 1.85 1316.07 2652.00 45.67 143.51 2122.47 2042.47 - 1128.56 762.19 60 °2520.937 "N 151 °16'06.211 "W 2.44 30.39 1.28 -2.92 1361.53 2715.00 46.40 144.10 2166.21 2086.21 - 1165.16 788.97 60 °2820.577 "N 151 °16'05.677 "W 1.34 - 171.72 1.16 0.94 1406.86 2779.00 45.76 143.97 2210.60 2130.60 - 1202.47 816.04 60 °2820.210 "N 151 °16'05.137 "W 1.01 164.06 -1.00 -0.20 1452.96 2842.00 44.92 144.31 2254.89 2174.89 - 1238.78 842.29 60 °28'19.852 "N 151 °16'04.614 "W 1.39 -71.33 -1.33 0.54 1497.77 2905.00 44.98 144.06 2299.47 2219.47 - 1274.88 868.34 60 °2519.496 "N 151 °16'04.094 "W 0.30 - 163.78 0.10 -0.40 1542.27 2967.00 44.69 143.94 2343.44 2263.44 - 1310.24 894.03 60 °28'19.148 "N 151 °1603.582 "W 0.49 180.00 -0.47 -0.19 1585.99 • 3031.00 44.39 143.94 2389.06 2309.06 - 1346.53 920.46 60 °28'18.791 "N 151 °1603.054 "W 0.47 169.33 -0.47 0.00 1630.87 3095.00 43.73 144.12 2435.05 2355.05 - 1382.55 946.60 60 °2618.436 "N 151 °1602.533 "W 1.05 - 141.00 -1.03 0.28 1675.37 3158.00 43.05 143.31 2480.83 2400.83 - 1417.44 972.21 60 °28'18.092 "N 151 °1602.022 "W 1.39 79.30 -1.08 -1.29 1718.64 3222.00 43.22 144.57 2527.53 2447.53 - 1452.81 997.97 60 °28'17.744 "N 151 °16'01.508 "W 1.37 105.69 0.27 1.97 1762.40 3285.00 43.04 145.53 2573.51 2493.51 - 1488.11 1022.64 60 °28'17.396 "N 151 °1601.016 "W 1.08 -90.09 -0.29 1.52 1805.46 3349.00 43.05 143.88 2620.29 2540.29 - 1523.76 1047.88 60 °2517.045 "N 151 °16'00.513 "W 1.76 -56.22 0.02 -2.58 1849.15 3413.00 43.43 143.06 2666.91 2586.91 - 1558.99 1073.98 60 °28'16.698 "N 151 °15'59.992 "W 1.06 - 134.15 0.59 -1.28 1892.98 3476.00 42.93 142.30 2712.85 2632.85 - 1593.28 1100.11 60 °2816.361 "N 151 °15'59.471 "W 1.15 162.88 -0.79 -1.21 1936.06 3540.00 42.34 142.57 2759.93 2679.93 - 1627.64 1126.54 60 °2616.022 "N 151 °1658.944 "W 0.97 150.29 -0.92 0.42 1979.37 3603.00 41.70 143.12 2806.74 2726.74 - 1661.25 1152.01 60 °28'15.691 "N 151 °15'58.436 "W 1.17 - 176.30 -1.02 0.87 2021.52 3666.00 40.99 143.05 2854.03 2774.03 - 1694.52 1177.01 60 °2615.36314 151 °1657.937 "W 1.13 - 115.83 -1.13 -0.11 2063.12 3729.00 40.74 142.25 2901.68 2821.68 - 1727.29 1202.01 60 °2615.041 "N 151 °1657.438 "W 0.92 - 174.22 -0.40 -1.27 2104.31 3792.00 40.23 142.17 2949.59 2869.59 - 1759.61 1227.08 60 °28'14.722 "N 151 °1556.939 "W 0.81 164.04 -0.81 -0.13 2145.17 3855.00 38.45 142.99 2998.32 2918.32 - 1791.32 1251.35 60 °2614.410 "N 151 °1656.454 "W 2.94 163.80 -2.83 1.30 2185.08 3919.00 37.59 143.40 3048.73 2968.73 - 1822.89 1274.96 60 °2614.099 "N 151 °1655.983 "W 1.40 - 168.64 -1.34 0.64 2224.48 3982.00 37.08 143.23 3098.83 3018.83 - 1853.53 1297.79 60 °2613.797 "N 151 °15'55.528 "W 0.83 - 133.80 -0.81 -0.27 2262.68 4045.00 36.37 141.97 3149.32 3069.32 - 1883.45 1320.67 60 °28'13.503 "N 151 °1655.072 "W 1.64 157.98 -1.13 -2.00 2300.32 4109.00 35.19 142.80 3201.24 3121.24 - 1913.09 1343.51 60 °2613.211 "N 151 °1654.616 "W 1.99 - 140.86 -1.84 1.30 2337.71 4172.00 34.29 141.49 3253.01 3173.01 - 1941.44 1365.53 60 °28'12.932 "N 151 °15'54.177 "W 1.86 177.59 -1.43 -2.08 2373.57 4235.00 33.12 141.58 3305.42 3225.42 - 1968.81 1387.28 60 °28'12.662 "N 151 °1653.743 "W 1.86 163.97 -1.86 0.14 2408.47 4298.00 31.89 142.25 3358.55 3278.55 - 1995.46 1408.16 60 °28'12.400 "N 151 °1653.327"W 2.03 - 179.61 -1.95 1.06 2442.29 4361.00 30.40 142.23 3412.47 3332.47 - 2021.21 1428.12 60 °28'12.146 "N 151 °1652.929 "W 2.37 140.64 -2.37 -0.03 2474.84 4424.00 29.23 144.22 3467.13 3387.13 - 2046.30 1446.87 60 °28'11.899 "N 151 °1652.555 "W 2.43 178.36 -1.86 3.16 2506.15 4487.00 27.92 144.30 3522.46 3442.46 - 2070.75 1464.48 60 °28'11.658 "N 151 °1652.204 "W 2.08 - 159.15 -2.08 0.13 2536.28 • 4550.00 26.81 143.36 3578.40 3498.40 - 2094.13 1481.56 60 °28'11.428 "N 151 °15'51.863 "W 1.89 160.73 -1.76 -1.49 2565.23 4613.00 25.72 144.24 3634.90 3554.90 - 2116.63 1498.03 60 °28'11.206 "N 151 °15'51.534 "W 1.84 165.42 -1.73 1.40 2593.11 4676.00 23.09 145.99 3692.27 3612.27 - 2137.96 1512.93 60 °28'10.996 "N 151 °1551.237 "W 4.33 - 173.26 -4.17 2.78 2619.13 4740.00 20.59 145.15 3751.67 3671.67 - 2157.60 1526.38 60 °28'10.803 "N 151 °1650.969 "W 3.94 - 170.13 -3.91 -1.31 2642.93 4803.00 17.65 143.46 3811.19 3731.19 - 2174.37 1538.40 60 °28'10.637 "N 151 °15'50.729 "W 4.75 - 177.03 -4.67 -2.68 2663.57 4866.00 15.86 143.12 3871.51 3791.51 - 2188.93 1549.26 60 °28'10.494 "N 151 °15'50.513 "W 2.85 - 164.98 -2.84 -0.54 2681.72 4929.00 13.83 140.83 3932.40 3852.40 - 2201.66 1559.18 60 °2610.369 "N 151 °1650.315 "W 3.35 - 170.34 -3.22 -3.63 2697.84 4992.00 11.23 138.55 3993.90 3913.90 - 2212.10 1568.00 60 °2510.266'N 151 °15'50.139 "W 4.20 - 168.96 -4.13 -3.62 2711.45 5056.00 7.63 133.21 4057.02 3977.02 - 2219.68 1575.22 60 °28'10.191 "N 151 °1649.995 "W 5.78 - 161.74 -5.62 -8.34 2721.81 5119.00 4.72 121.03 4119.65 4039.65 - 2223.88 1580.49 60 °28'10.150 "N 151 °1649.890 "W 5.04 - 158.85 -4.62 -19.33 2728.29 5182.00 3.14 109.33 4182.51 4102.51 - 2225.79 1584.34 60 °28'10.131 "N 151 °1649.813 "W 2.80 -23.75 -2.51 -18.57 2732.07 5246.00 3.42 107.28 4246.40 4166.40 - 2226.93 1587.82 60 °28'10.120 "N 151 °1549.743 "W 0.47 159.70 0.44 -3.20 2735.01 5309.00 2.45 115.95 4309.32 4229.32 - 2228.08 1590.83 60 °2610.108 "N 151 °15'49.683 "W 1.69 - 176.21 -1.54 13.76 2737.68 5373.00 0.79 107.92 4373.29 4293.29 - 2228.82 1592.48 60 °28'10.101 "N 151 °1649.651 "W 2.61 140.87 -2.59 -12.55 2739.23 5562.00 0.50 163.13 4562.28 4482.28 - 2230.01 1593.95 60 °2610.089 "N 151 °1649.621 "W 0.34 163.25 -0.15 29.21 2741.06 5752.00 0.43 165.96 4752.27 4672.27 - 2231.49 1594.37 60 °2610.075 "N 151 °1649.613 "W 0.04 0.00 -0.04 1.49 2742.51 5989.00 0.43 165.96 4989.27 4909.27 - 2233.22 1594.80 60 °2610.058 "N 151 °1649.604 "W 0.00 0.00 0.00 0.00 2744.17 Projected Data NO SURVEY Page 1 of 1 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Wednesday, December 17, 2008 11:17 AM To: 'Skiba, Kevin J.'; Rang, Craig L. Subject: KU 22-6X (208 -135) Kevin and Craig, Proceeding to complete this well without a sundry is acceptable. It sounds like that operation will proceed more quickly than on prior new wells. For us, it sometimes gets confusing with the drilling happening under one organization and the completion under another. Call or message with any questions. Tom Maunder, PE AOGCC 12/17/2008 r KU 22 -6x CBL Submission RRuirement Page 1 of 1 • Maunder, Thomas E (DOA) From: Skiba, Kevin J. [kskiba @marathonoil.com] Sent: Monday, December 08, 2008 10:32 AM To: Maunder, Thomas E (DOA) Cc: Rang, Craig L; Tank, Will; pkberga @marathonoil.com; Schoffmann, A B (Ben) Subject: KU 22-6x CBL Submission Requirement Tom, KU 22-6x is a new Sterling Pool -6 well. Marathon has no plans to utilize this well for gas injection. A Cement Bond Log was recently run on this well and will be submitted with the other 10-407 Well Completion Report & Log information, per our conversation. Thanks, Kevin Skiba Engineering Technician Marathon Oil Company Office (907) 283 -1371 Cell (907) 394 -1332 Fax (907) 283 -1350 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Thursday, October 16, 2008 2:36 PM To: Tank, Will; Berga, Pete; Schoffmann, A B (Ben) Cc: Regg, James B (DOA) Subject: KU 22 -6X (208 -135) Gentlemen, I had occasion to examine the file for this well and noted a letter from Ms. Lockhart to Kevin Banks regarding the drilling of this well into the Pool 6 Storage Pool. Throughout the permit application it is indicated that this well will be a production well, however in Ms. Lockhart's letter it is stated "This well is designed to produce gas and will not be used for injection at this time." Is there a possibility that this well could be used for injection? If there is a potential for injection, it is advisable to plan to secure a bond log during the initial completion. That may be in Marathon's plans, but since the permit application only covered the drilling of the well those details were not included. Call or message with any questions. Tom Maunder, PE AOGCC 12/8/2008 • • Carri Lockhart Production Manager Alaska Asset Team United States Production Organization Marathon � ATHON Oil Company P.O. Box 196168 Anchorage, AK 99519 -6168 Telephone 907 -561 -5311 Fax 907 -565 -3076 August 27, 2008 RECEIVED AUG 2 9 2008 State of Alaska Alaska Oil & Gas Cons. Commission Division of Oil and Gas Anchorage Department of Natural Resources Attn: Kevin Banks, Acting Director 550 W. 7 Ave, Suite 800 Anchorage, AK 99501 -3560 RE: Request to Drill KU 22 -6x Well Sterling Pool 6 Kenai Gas Storage Lease ADL 390821 Kenai Gas Unit, Kenai Peninsula Borough, Alaska Dear Mr. Banks: Marathon Oil Company (Marathon), Operator of Kenai Gas Field, hereby submits plans for a new drill well, Kenai Unit (KU) 22 -6x. Pursuant to the State of Alaska, Gas Storage Lease ADL 390821, First Storage Development Plan Approval dated May 8, 2006, Marathon is obligated to request approval from the Department of Natural Resources for any new proposed wells. The addition of KU 22 -6x to the 2008 plan represents a revision from the approved Third Storage Development Plan, effective February 2008 through January 2009. Marathon respectfully requests the Division's approval of this revised plan. Well KU 22 -6x will spud on or about September 20, 2008, with first gas production to follow after completion, depending upon seasonal demand. This well is designed to produce gas and will not be used for injection at this time. Marathon would like to add a new Pool 6 well to increase gas deliverability for the upcoming winter. For technical questions, please contact Jennifer Enos at 713 - 296 -3319 for other questions please contact Chick Underwood at 907 -565 -3044. Sincerely, Carri A. ockhart Cc: D. O. Martens A. B. Schoffmann L. C. Ibele AOGCC File 7511.1 • • co C ftA EA SARAH PALIN, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company 3201 C. Street, Ste 800 Anchorage, AK 99503 Re: Kenai Gas Field, Sterling Oil Pool, KU 22 -6X Marathon Oil Company Permit No: 208 -135 Surface Location: 823' FSL, 1833' FEL, SEC. 31, T5N, R11W, S.M. Bottomhole Location: 1395' FNL, 1339' FWL, SEC. 6, T4N, R11W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). Sincerely, Daniel T. Seamount, Jr. ' Chair DATED this Z- day of August, 2008 cc: Department of Fish & Game, Habitat Section w/o end. Department of Environmental Conservation w/o end. STATE OF ALASKA -, r R EC EI VED ALA. OIL AND GAS CONSERVATION CO OR SION ,L' ; 202008 PERMIT TO DRILL rsif‘ 20 AAC 25.005 Alaska Oil & Gas Cons, Commission 1a. Type of Work: lb. Current Well Class: Exploratory El Development Oil El 1c. Specify if well is prop f , )8 e Drill el Redrill ❑ Stratigraphic Test ❑ Service El Development Gas 0 Coalbed Methane Gas Hydrates ❑ Re -entry ❑ Multiple Zone ❑ Single Zone El Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket el Single Well ❑ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 KU 22 -6X 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 6,051 TVD: 5,050 Kenai Gas Field 4a. Location of Well (Governmental Section): 7. Property Designation: Sterling Pool Surface: 823' FSL, 1,833' FEL, Sec. 31, T5N, R11W, S.M. A- 028142 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1,395' FNL, 1,339' FWL, Sec. 6, T4N, R11W, S.M. September 18, 2008 Total Depth: 9. Acres in Property: 14. Distance to Nearest 1,395' FNL, 1,339' FWL, Sec. 6, T4N, R11W, S.M. 2,494.04 Property: 1,277 ft 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 270,794.501 y - 2,368,176.229 Zone - 4 (Height above GL): (21' AGL) 80 feet Within Pool: 1,097 ft KU 21 -6RD 16. Deviated wells: Kickoff depth: 200 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 49.41 degrees Downhole: 1,917 Surface: 822 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 13 3/8" 68 K -55 PE 99' 0' 0' 120' 120' 12 1/4" 9 5/8" 40 L -80 BTC 1,979' 0' 0' 2,000' 1,656' 447 sacks 8 1/2" 5 1/2" 17 L -80 BTC 6,030' 0' 0' 6,051' 5,050' 347 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Structural Surface Intermediate Production Liner Perforation Depth MD (ft): 4 S Perforation Depth TVD (ft): 20. Attachments: Filing Fee 1I BOP Sketch • Drilling Program 0 Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat Ei Diverter Sketch El Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature Phone 713-296-3273 Date August 19, 2008 (/ Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: �Qf /'s o 50� ,. 2s -, Date: 7 . !� 7 • 0$ requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: d Other: 4 ?c, \ v ." ‘ vti J v.. sz ,L _ � Samples req'd: Yes❑ No ❑ Mud log req'd: Yes❑ o❑ ❑ 2 H S measures: Yes No ❑ Directional svy req'd: Yes /No❑ 0 �v cLv corm �� ' � v\ sacs.tRA 3,\Ac- DO PAC a S.®"z, 5 Ca.; , 7/1 // APPROVED BY THE COMMISSION DATE: / , COMMISSIONER Form 10 -401 Revised 12/2005 Submit in Duplicate k CSR l'A A L • I Worldwide Drilling North America M Marathon P.O. Box 3128 MARATHON oil Company Houston, TX 77253 -3128 REx 713-629-6600 713- 499 -6737 Fax E 1 L J August 19, 2008 c r Alaska Oil & G ncha ago o~n ��s �ior� A Daniel T. Seamount, Jr. Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7 Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Kenai Gas Field Well: KU 22 -6X Dear Mr. Seamount Enclosed please find the PERMIT TO DRILL application, along with the associated attachments. The intent is to drill a well in the Sterling Pool in the Kenai Gas Field. No completion is desired in other pools. Please note that Marathon is requesting a waiver for 20 ACC 25.035 (c) (1) (b) requiring the vent line to be as large as the hole drilled. The request is specified on page 6 of the attached drilling prognosis. For the directional data we utilize the National Geodetic Survey conversion in the program CORPSCON to calculate the State Plane Coordinates in NAD 27 for the planned and actual weilpaths from the NAD 83 data and present both in our directional survey attachment for the 10 -401. We also provide the same data electronically, so that the AOGCC has this for data input into their database. If you require further information, I can be reached at 713 - 296 -3273 or by e-mail at wjtank @marathonoil.com. Sincerely, i )c , Jemie Willard J. Tank Advanced Senior Drilling Engineer Enclosures KU 22 -6X Marathon Oil Company Drilling Program Alaska MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KU 22 -6X Originator: Will Tank -!" S- August 19, 2008 Date Reviewed by: Pete Berga Date Brian Roy Date 8/19/2008 Page 1 of 19 KU 22 -6X Marathon Oil Company Drilling Program Alaska TABLE OF CONTENTS 1. Emergency Response Information 4 1.1 Directions to Location 4 1.2 Rig Contact Numbers 4 1.3 Marathon Emergency Response Contacts 4 1.4 Outside Emergency Response 4 1.5 Marathon Contact List 5 2. Regulatory Agency Contacts 5 2.1.1. Internal Regulatory Contact 5 2.1.2. External Regulatory Contact 5 3. Regulatory Compliance 5 4. Drilling Program Summary 7 4.1 General Well Data 7 4.2 Working Interest Owners Information 7 4.3 Geologic Program Summary 7 4.4 Summary of Potential Drilling Hazards 8 4.5 Formation Evaluation Summary 8 4.6 Drilling Program Summary 9 4.7 Casing Program Summary 11 4.8 Casing Design 11 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) 11 4.10 Casing Test Pressure Calculations 12 4.11 Blowout Prevention Equipment, Testing and General Procedures 13 4.11.1. Function Testing 13 4.11.2. Pressure Testing 14 4.12 Wellhead Equipment Summary 14 4.13 Directional Program Summary 14 4.14 Directional Surveying Summary 15 4.15 Drilling Fluid Program Summary 16 4.16 Drilling Fluid Specifications 16 4.17 Solids Control Equipment 17 4.18 Cement Program Summary 18 4.19 Bit Summary 18 4.20 Hydraulics Summary 19 4.21 Formation Integrity Test Procedure 19 8/19/2008 Page 2 of 19 • • KU 22 -6X Marathon Oil Company Drilling Program Alaska Attachments Group Attachment Attached Commercial Information AFE Days /Cost vs. Depth Curves X Project Objectives and Scorecard RSO Coding Information X Requisitions Vendor List Bonus Program Drilling Contract Regulatory / HES Information Emergency Evacuation Plan X H2S Contingency Plan n/a Regulatory Permits X Regulatory Rules and Regulations Risk Analysis Miscellaneous Programs (Vendors) Bit Proposal X Cement Proposal X Directional Plan X Fluids Program X Wellhead Equipment — Description /Drawings Drill String and BHA Summary Rig Mobilization /Mooring Procedure n/a Geological Information Location Map w/ offsets X Offset Data Proposed Formation Pore Pressure, Mud Wt & Fracture Gradient X Temperature Curves Geologic Structure Maps Geologic Cross Section Bathymetry Map n/a Analysis Riser Analysis n/a Station Keeping Analysis — Mooring /DP n/a Stress Check Casing Design File X Maximum Allowable Overpull Miscellaneous Information Wellbore Diagram n/a Rig Elevations X Well Location Diagram X BOP Schematic X BOP Well Control Bridging Document Detailed Casing Specifications X Detailed Drill Pipe Specifications 8/19/2008 Page 3 of 19 • • KU 22 -6X Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °28'32.026 "N Longitude - 151°16'21.420'W (NAD 83) From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on Ground Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go approximately 5 miles. Turn East onto the lease road to Pad 34 -31. The location is on the East side of the pad just past the Kenai Gas Field office. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907 - 283 -1314 907 - 394 -1321 Marathon Supervisor 907 - 283 -1312 907 - 394 -1317 1.3 Marathon Emergency Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907 - 283 -6465 CERT 24 hrs Notification 1- 800- MOC -CERT CERT Crisis Center Houston 713- 296 -4230 713 - 296 -4237 1.4 Outside Emergency Response Location Contact Phone Fire Kenai / Soldotna, Alaska 907 - 262 -4792 Ambulance Hospital Kenai / Soldotna, Alaska Central Peninsula Hospital 907 - 262 -4404 Kenai Police 907 - 283 -7879 Police Kenai / Soldotna, Alaska Soldotna Police 907 - 262 -4455 State Police 907 - 262 -4453 Coast Guard 800 - 478 -5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil / Toxic Chemical Spills 800 - 424 -8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 8/19/2008 Page 4 of 19 KU 22 -6X • 0 Marathon Oil Company Drilling Program Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713 - 296 -3273 _ 713- 203 -8398 713 - 499 -6737 832 - 934 -2617 Pete Berga Drilling Superintendent 907 - 565 -3032 907 - 529 -0551 907 - 565 -3076 907 - 346 -3763 Bryan Roy Drilling Manager 713 - 296 -3256 832 - 444 -4772 713 - 499 -6707 281- 246 -4686 Scott Szalkowski Geologist 713 - 296 -3390 _ 713- 301 -9834 Moksh Dani Reservoir Engineer 713 - 296 -3140 832 - 692 -4700 Craig Rang Completion Engineer 907 - 283 -1372 907 - 394 -1824 Ken Walsh Production Engineer 907 - 283 -1311 907 - 394 -3060 907 - 283 -3050 Rowland Lawson Drilling Supervisor 907 - 283 -1312 907 - 394 -0953 907 - 283 -1313 John Nicholson Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Dan Byrd Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Mitch Burns Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 2. Regulatory Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title Office Phone CeII Phone Home Phone Facsimile Chick Underwood Regulatory Compliance 713- 296 -3254 979 - 830 -7927 979- 836 -9390 713- 499 -6748 2.1.2. External Regulatory Contact Contact Title Office Phone Facsimile 24 hr Emergency Pager AOGCC 907- 793 -1236 AOGCC North Slope Pager - 907 - 659 -3607 BLM 907 - 267 -1442 3. Regulatory Compliance Regulation Requirement Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig, if going to Ninilchik or Kasilof. BOP testing interval requirement is now 14 days (20 AAC 25.035 e 10 A). BOP Testing Requirement for a 24 hour notice to AOGCC and to the BLM prior to BOP tests. (20 AAC 25.035 e 10 F) Prior to Spud Requirement for a 24 hour notice to AOGCC and to the BLM prior to spud of the well. Water Sampling Test the rig camp water for the Class C drinking water permit. Surface Casing & Cementing Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing surface casing. Intermediate Casing & Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing intermediate casing. Cementing Cuttings Tank Take picture of cutting tank in use and after cleaning for the ADEC. Logging Requirement for a 24 hour notice to the BLM prior to logging. 8/19/2008 Page 5 of 19 KU 22 -6X • Marathon Oil Company Drilling Program Alaska Production Casing & Requirement for a 24 hour notice to the BLM prior to setting and cementing Production casing (EXCAPE string) Cementing the well. AOGCC Regulation 20 ACC 25.035 (c) (1) (b) — Requirement for diverter diameter to be at least 16 inches or to meet or exceed hole size. The surface casing for this well is 9 5/8 ", with a 13 3/8" conductor string. The wellhead system currently available is 13 3/8" slip loc x 13 5/8" flanged. Our intentions are to fit the multibowl head to the 13 3/8" conductor pipe. From there a 13 5/8" 5M diverter spool would be placed on the head and our 13 5/8" 5M BOP stack would be rigged up on top of the diverter spool. The diverter spool has an 11" 5M outlet and valve Diverter Size Requirement configuration. The planned surface hole size is 12 1/4 ". Many wells have been drilled in the Kenai Gas Field. No flow control issues have been seen in the surface hole of any of these wells. This configuration was used on Grassim Oskolkoff #4 (Ninilchik field) and KU 21 -7X in the Kenai Gas Field for the surface hole and no problems were encountered. The actual 11" section of the diverter line is less than a couple of feet in length, with the remainder being a full 16" diameter. Once the surface casing is set and cemented, the diverter spool will be blind flanged and remain in the BOP stack nippled up on the wellhead. Comments 8/19/2008 Page 6 of 19 KU 22 -6X • Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name KU 22 -6X Lease / License Surface Location 823' FSL, 1,833' FEL, Sec. 31, T5N, R11W, S.M. WBS Code DD.08.18506.CAP.DRL Slot/Pad KGF Pad 34 -31 Field Kenai Gas Field Spud Date 9/18/08 (est.) KB (above MSL) 80' County /Province Kenai Peninsula API No. GL (above MSL) 59' State / Country Alaska Permit No. Perm. Datum KB Total MD 6,051' Well Class Development Water Depth N/A Total TVD 5,050' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: 1 Comments: 4.2 Working Interest Owners Information Company Working Interest Address Phone Facsimile Marathon 100% P.O. Box 196168 907- 561 -5311 907 - 565 -3076 Anchorage, AK 99519 -6168 4.3 Geologic Program Summary Surface Location Coordinates — NAD 83 From Lease/Block Lines 823' FSL, 1,833' FEL, Sec. 31, T5N, R11W, S.M. Latitude 60° 28' 32.026" N Longitude 151° 16' 21.420" W UTM North (Y) 2,367,929.756' UTM East (x) 1,410,822.576' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Sterling A8 (Not a Prod Target) 4,595 3,610 0.5 Sandstone Gas/Water Sterling Pool 6 (Primary Target) 5,506 4,505 0.6 Sandstone Gas Upper Beluga (Not a Prod Target) 5,751 4,750 1.5 — 7.3 Sandstone Gas Upper Beluga U5 (Not a Prod Target) 5,901 4,900 1.5 — 7.3 Sandstone Gas 8/19/2008 Page 7 of 19 KU 22 -6X • • Marathon Oil Company Drilling Program Alaska Depth (KB) Horizontal Displacement (ft) MD TVD +N / -S +E / -W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Sterling Pool 6 5,506 4,505 1,395' FNL, 1,339' FWL, Sec. 6, T4N, R11W, S.M. -2,216 1,568 Circle 150' radius Upper Beluga 5,751 4,750 1,395' FNL, 1,339' FWL, Sec. 6, T4N, R11W, S.M. -2,216 1,568 Circle 150' radius Upper Beluga U5 5,901 4,900 1,395' FNL, 1,339' FWL, Sec. 6, T4N, R11W, S.M. -2,216 1,568 Circle 150' radius TD 6,051 5,050 1,395' FNL, 1,339' FWL, Sec. 6, T4N, R11W, S.M. -2,216 1,568 Circle 150' radius Comments: 1. There are no zones from surface to TD that have water with a TDS of 10,000 ppm or greater. 2. No zones above the Sterling (4,595' MD, 3,610' TVD) contain oil or gas. 3. The proposed top of cement is greater than 500' above the Sterling, the highest known hydrocarbon bearing zone. 4.4 Summary of Potential Drillinct Hazards Depth KB Hazard Event (ND) Discussion Precautions Lost Circulation in Sterling and Production Control losses by using sufficiently sized LCM, Take care not to surge the hole during Upper Beluga sands Hole including graphite and calcium carbonate types. tripping operations. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut -in procedures must be posted in the driller's dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H is anticipated. Gas sands will be encountered from +1- 4,595' MD (3,610' TVD) to total depth of the well. These sands will run from highly depleted to above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. The Flo-Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. Best Practices: 1 Comments: 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None None 0' — 2,000' MD Production None Reeves Quad Combo. Pull GR- Neutron to Basic with GCA, shale density, temperature in and 2,000' — 6,051' MD surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 8/19/2008 Page 8 of 19 • KU 22 -6X Marathon Oil Company Drilling Program Alaska 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 13 3/8" set to approximately 120', prior to drilling rig move. MIRU drilling rig. NU BOP as diverter on conductor. 1. RU crane and hammer. Drive 13 3/8" conductor to +/ -120 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install 13 3/8" slip lock connection. 4. Nipple up 13 5/8 ", 5M diverter spool, 16" diverter valve, and 16" diverter line. 5. On top of the diverter, NU 13 5/8" 5M BOP's. Function test diverter and diverter valve. Test BOP's and choke manifold to 25 psi. p cr‘ 6. Set t St wear bushing. • t a% Best Practices: 1 Comments: Surface: Drill 12 1/4" hole to +/- 2,000' set 9 -5/8" casing. 1. Drill a 12 1/4" hole to 2,000' MD (1,656' TVD) per the directional plan. 2. At TD circulate hole clean. Make wiper trip. TOOH. 3. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 4. Back out landing joint. Blind flange the diverter spool. 5. Set wear bushing. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Production: Drill 8 1/2" hole to +/- 6,051' set 5 -1/2" casing. 1. PU 8 1/2" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 12 ppg. Estimated Leak Off EMW is 15 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 6,051' MD (5,050' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH and lay down BHA and drill pipe. Pull wear bushing. 7. Change out variable pipe rams with 5 1/2" casing rams. Run test plug and test casing rams to 1,500 psi. 8. RU and run 5 1/2" casing to TD. i ®OC� 9. RU cementing company. Circulate through casing and begin reciprocation of the casing. Cement 5 1/2" casing while reciprocating pipe. 10. Bump plug with 500 psi over displacement pressure, displacing with treated KCL brine. Continue to suspend casing with the blocks until proper WOC time for the 10.5 ppg slurry has been reached (minimum 24 hours). 11. PU 5 1/2" casing to put it in tension, set manual slips. Cut 5 1/2" casing. 12. ND BOP. Make final cut. Set 5 1/2" packoff. NU 13 5/8" 5M X 5 1/8" 5M tubing head adapter and 5 1/8" 5M tree. Test tree to 5,000 psi. 13. Rig down and move out drilling rig. 8/28/2008 Page 9 of 19 KU 22 -6X • Marathon Oil Company Drilling Program Alaska 4.6 Drillin • o.ram Summa Drive Pip N/A Conductor: 13 3/8" set to approximately 120', prior to drilling rig move. MIRU drilling rig. NU BOP as diverter on conductor. 1. RU crane and hamm: Drive 13 3/8" conductor to +/ -120 ft. RKB. RD crane and hammer. 2. Move in and rig up rota drilling rig. 3. Install 13 3/8" slip lock co ection. 4. Nipple up 13 5/8 ", 5M dive -r spool, 16" diverter valve, and 16" diverter line. 5. On top of the diverter, NU 1 5/8" 5M BOP's. Function test diverter and diverter valve. Test BOP's and choke manifold to 250/1,500 psi. 6. Set wear bushing. Best Practices: SUPERSEDED Comments: S (5` �J Surface: Drill 12 1/4" hole to - 2,000' set 9 -5/8" casing. 1. Drill a 12 1/4" hole to 2,000' MD (1,656' TVD) per . •e directional plan. 2. At TD circulate hole clean. Make wiper trip. TOOH. 3. Change out variable pipe rams with 9 5/8" casing ram Run test plug and test casing rams to 1,500 psi. 4. Run and cement 9 5/8" casing. Land hanger in multibo wellhead. 5. Back out landing joint. Blind flange the diverter spool. 6. Change out 9 5/8" casing rams with variable pipe rams. Ru test plug and test rams to 250/1,500 psi. 7. Set wear bushing. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in . ' e cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to rface. Vac trucks will pull from cellar. Comments: Production: Drill 8 1/2" hole to +/- 6,051' set 5 -1/2" casing. 1. PU 8 1/2" PDC bit and directional BHA. Drill out float equipment and 20' of new mation. CBU. 2. Test shoe to an FIT of 12 ppg. Estimated Leak Off EMW is 15 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 6,051' MD (5,050' TVD) as per the directiona •rogram, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH and lay down BHA and drill pipe. Pull wear b ing. 7. Change out variable pipe rams with 5 1/2" casing rams. Run test plug and test casing rams ' 1,500 psi. 8. RU and run 5 1/2" casing to TD. 9. RU cementing company. Circulate through casing and begin reciprocation of the casing. Cem- 5 1/2" casing while reciprocating pipe. 10. Bump plug with 500 psi over displacement pressure, displacing with treated KCL brine. Continue to uspend casing with the blocks until proper WOC time for the 10.5 ppg slurry has been reached (minimum 24 hours). 11. PU 5 1/2" casing to put it in tension, set manual slips. Cut 5 1/2" casing. 12. ND BOP. Make final cut. Set 5 1/2" packoff. NU 13 5/8" 5M X 5 1/8" 5M tubing head adapter and 5 1/8" tree. Test tree to 5,000 psi. 13. Rig down and move out drilling rig. 8/19/2008 'age 9 of 19 KU 22 -6X 1 • Marathon Oil Company Drilling Program Alaska Best Practices: 1 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. 2 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 3 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. 4 Put lubricant in prior to drill out of intermediate shoe. 3 -5% LoTorq is normally required, possibly more depending on solids in the mud. Maintain a minimum of 3% throughout the hole section. Comments: Due to anticipated losses in the Sterling and Upper Beluga, both calcium carbonate and graphite material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. Completion: Completion will be done without a rig. This will include perforating via wireline on targeted zones. Best Practices: 1 Comments: 8/19/2008 Page 10 of 19 KU 22 -6X 1 40 • Marathon Oil Company Drilling Program Alaska 4.7 Casing Program Summary MD (ft) Connection API Ratings Casing Makeup Hole .y a . o y Size Weight ID Drift O. D. Torque Size m' a U N � H Q. (in) Top Bottom (Ibs /ft) (in) (in) Grade Type (in) (ft-Ibs) (in) 9 5/8 0 2,000 40 8.835 8.679 L -80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 5 1/2 0 6,051 17 4.892 4.767 L -80 BTC 6.050 N/A * 8 1/2 7,740 6,280 397 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 * - Make up buttress connection to proper mark, not to a torque value. Comments: 1 ALL CASING WILL BE NEW CASING. 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum N C Casing Depth Mud Wt Frac. Form Surface o. o Size Weight TVD When Set Grad Press Pressure m co (in ( Ib /ft) Grade (ft) (lb/gal) (lb/gal) (lb/gal) (psi) 9 5/8 40 L -80 1,656 9.2 15.0 8.3 822 3.65 3.90 3.74 51/2 17 L -80 5,050 9.4 14.0 7.3 822 4.57 2.55 2.05 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** Mud /Gas (in) (ft) (psi) (psi) Percentage 9 5/8 1,656 3,947 822 30/70 5 1/2 5,050 5,365 822 30/70 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure The calculation method for MASPBHP has been modified from the standard AOGCC use of a Bottom Hole Pressure — 0.1 psi /ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure — 30% Mud Column — 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. 8/19/2008 Page 11 of 19 • KU 22 -6X Marathon Oil Company Drilling Program Alaska Surface casing: 9 5/8" (2,000' MD, 1,656' TVD) MASPf = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPf = (15.0 ppg x .052 x 1,656') - (0.1 psi /ft x 1,656') MASPf = 1,292 psi -166 psi MASPf = 1,126 psi. MASPbhp = BHP open hole td — Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (7.3 ppg x .052 x 5,050') — (0.3 x 9.4 ppg x .052 x 5,050') — (0.7 x 0.1 psi /ft x 5,050') MASPbhp = 1,917 psi — 741 psi — 354 psi MASPbhp = 822 psi MASP = MASPbhp = 822 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (9.2 — 8.3) x .052 x 1,656' MAWP = 4,025 psi — 78 psi = 3,947 psi Production casing: 5 1/2" (6,051' MD, 5,050' TVD) MASPfr = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfreo = (14.0 ppg x .052 x 5,050') - (0.1 psi /ft x 5,050') MASPf = 3,676 psi - 505 psi MASPfreo= 3,171 psi. MASPbhp = BHP open hole td — Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbh = (7.3 ppg x .052 x 5,050') — (0.3 x 9.4 ppg x .052 x 5,050') — (0.7 x 0.1 psi /ft x 5,050') MASPbhp = 1,917 psi — 741 psi — 354 psi MASPbhp = 822 psi MASP = MASPbhp = 822 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 7,740) — (9.4 — 9.2) x .052 x 5,050' MAWP = 5,418 psi — 53 psi = 5,365 psi Best Practices: 1 Comments: 4.10 Casing Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back -up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 8/28/2008 Page 12 of 19 KU 22 -6X • • Marathon Oil Company Drilling Program Alaska Surface casin • : 13 3/8" 2 . 10' MD 1 656' TVD MASPfrac = ((Fracture gradien t shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 1, 6') - (0.1 psi /ft x 1,656') MASPfrac = 1,292 psi - 166 psi MASPfrac = 1,126 psi. MASPbhp = BHP open hole td — Hydrostatic essure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (7.3 ppg x .052 x 5,050') — (0. ' x 9.4 ppg x .052 x 5,050') — (0.7 x 0.1 psi /ft x 5,050') MASPbhp = 1,917 psi — 741 psi — 354 psi MASPbhp = 822 psi MASP = MASPbhp = 822 psi SUPERSEDED' MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup id Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (9.2 — 8.3) x .052 x 1,656' MAWP = 4,025 psi — 78 psi = 3,947 psi Production casing: 9 5/8" (6,051' MD, 5,050' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - H ostatic pressure of gas column at the shoe. MASPfrac = (14.0 ppg x .052 x 5,050') - (0.1 psi /ft x 5,050') MASPfrac = 3,676 psi - 505 psi MASPfrac = 3,171 psi. MASPbhp = BHP open hole td — Hydrostatic pressure of mud portion — Hyd tatic pressure of gas portion MASPbhp = (7.3 ppg x .052 x 5,050') — (0.3 x 9.4 ppg x .052 x 5,050') — 7 x 0.1 psi /ft x 5,050') MASPbhp = 1,917 psi — 741 psi — 354 psi MASPbhp = 822 psi MASP = MASPbhp = 822 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 7,740) — (9.4 — 9.2) x .052 x 5,050' MAWP = 5,418 psi — 53 psi = 5,365 psi Best Practices: 1 Comments: 4.10 Casino Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pres e of the casing adjusted for the mud weight used during the test less a 8.3 ppg back -up unless otherwise noted. AOGCC regulation - .tate that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 8/19/2008 'age 12 of 19 KU 22 -6X • • Marathon Oil Company Drilling Program Alaska 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS Low /High Casing (in) (psi) (psi) (psi) (lb/gal) Size & Rating (psi) (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Surface 9 5/8 3,947 822 1,500 9.2 250/1, 0 (1)135 /8 "5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Production 51/2 5,365 822 1,500 9.4 250/1,5 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets 60 Blowout Preventers 4991/ The blowout preventer stack will consist of a 13 -5/8" x 5000 psi annular preventer, a 13 -5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13 -5/8" x 5000 psi drilling spool (mud cross) with 3 -1/8" x 5000 psi outlets. A diverter spool (with 16" side outlet) will be placed below the blowout preventer and the annular will be used with the diverter valve during surface drilling operations. After the surface hole is completed, the diverter spool outlet will be blind flanged, but the spool will be left in the stack. This is due to the need to use a 13 3/8" available well head, set on the 13 3/8" conductor. The choke manifold will be rated 3 -1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor -boy gas buster, and a vacuum -type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. 8/19/2008 Page 13 of 19 KU 22 -6X • • Marathon Oil Company Drilling Program Alaska 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 13 -5/8" 3M X 13 -3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 13 5/8" x 9 5/8" Fluted Mandrel Tubing Head 13 -5/8" 3M Studded Bottom X 13 -5/8" 5M Flg Top, W/ 2, 2- 1/16" 5M Studded Outlets, 13 5/8" x 5 1/2" Manual U,AA,PSL1,PR1 Slip Adapter Flange 13 -5/8" 5M X 5 -1/8" 5M W/ Seal Pocket and 5" H BPV Threads Best Practices: 1 Comments: 4.13 Directional Program Summary Build Tum Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N /-S +E/-W VS No. Description (ft) (ft) ( °/100') ( °/100') ( 0 /100') (deg) (deg) (ft) (ft) (ft) 1 Tie On 0 0 0 0 0 0 150.000 0 0 0 2 KOP 200.00 200.00 0 0 0 0 150.000 0 0 0 3 Build up Section 4.00 0 4.00 150.000 4 End of Build 800.00 782.61 4.00 0 4.00 24.000 150.000 - 107.25 61.92 123.31 Turn & Build 5 3.98 -0.52 4.00 150.000 Section 6 End of Turn /Build 1,440.62 1,292.15 3.98 -0.52 4.00 49.412 144.166 - 422.55 273.00 502.62 7 Hold Section 0 0 0 49.412 144.166 8 End of Hold 3,034.97 2,329.45 0 0 0 49.412 144.166 - 1,404.13 981.83 1,713.33 9 Drop Section -2.00 0 2.00 144.166 10 End of Drop 5,505.58 4,505.00 -2.00 0 2.00 0 144.166 - 2,215.59 1,567.81 2,714.20 11 TD 6,050.58 5,050.00 0 0 0 0 144.166 - 2,215.59 1,567.81 2,714.20 8/19/2008 Page 14 of 19 • KU 22 -6X Marathon Oil Company Drilling Program Alaska 0 'woo 0 95/8" 2000 $o t -1000 N - ± -.. o p Z KU 22-6X Sterling Pool 6 3000 - KU 22 -6X Sterling Pool 6 t KU 22-6X TD F - -2000 - 4000 KU 22 -0X Upper Beluga i i _ KU 22-6X Upper Beluga U5 5 1/2" - -- KU 22-6X Upper Beluga U5 KU 22 -6X Upper Beluga 5000 KU 22-6X TD - 1 1 1 1 I I I I I I..... I I I I I I I I I 1 1 I I I I _... I I 1 I I I 1 -1000 -0 1000 2000 3000 4000 0 1000 2000 Vertical Section at 144.72° (1500 ft/in) West( -) /East( +) (1000 ft/in) Comments: Vertical section calculated from a reference azimuth of 144.72° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) KDU 5 53.08 935 KU 14 -32 74.62 683 KDU 6 92.24 447 KU 21 -6 215.82 1,475 KU 11 -6 364.83 1,368 No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Surveying Summary Other Survey Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Tool Remarks Surface 0 — 2,000' X Production 2,000' — 6,051' X Best Practices: 1 Comments: 8/19/2008 Page 15 of 19 KU 22 -6X • • Marathon Oil Company Drilling Program Alaska 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (lb/gal) Fluid Description Additives Viscosifier Barite 0 1,656 8.6 — 9.2 Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL, Desco CF Flo -Vis, PolyPac UL, KCI, SafeCarb, Asphasol 1,656 5,050 9.2 — 9.4 6% Flo -Pro NT w/ Safecarb Supreme, Lo Torq, KlaGard, Conqor 404, Sodium Metabisulfite Best Practices: 1 Comments: 4.16 Drilling Fluid Specifications Interval — TVD LSRV Drill From To Density Vis 1 min PV YP Fluid Loss Solids (ft) (ft) (lb/gal) (sec/qt) (Ib. /100ft (cP) (lb/100 ft (cc) pH ( %) 0 1,656 8.6 -9.2 60 -100 N/A 25 -35 NC - 12 +/ -9.5 <7 1,656 5,050 9.2 — 9.4 30,000 — 10 - 14 < 6 +/- 9.5 +/- 6 40,000 Best Practices: 1 As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 5 1/2" production casing will be treated with corrosion inhibitor (Congor 404) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) and graphite will be used to control leakoff. 8/19/2008 Page 16 of 19 KU 22 -6X • Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment 0 0 tfi ai 0) c p . - D rn o) i] c - c c . N G) 7 N Interval U U U N Comments 0 — 6,051' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Equipment Specifications Item (quantity, design type, brand, model, flow capacity, etc) Shaker 2 — Swaco Mongoose PT Desander N/A Desilter 1 — Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 — MI /Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G &I Facility Zero Discharge N/A Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: 8/19/2008 Page 17 of 19 KU 22 -6X • Marathon Oil Company Drilling Program Alaska 4.18 Cement Program Summary Depth Gauge Top of Cement Gauge Ann Vol Slurry Casing Hole Ann Vol With OH Density Open Hole Thickening Size MD TVD Size MD TVD To TOC Excess Lead/Tail Excess Time (in) (ft) (ft) (in) (ft) (ft) (ft) (ft (PP9) ( %) (hrs) 13 3/8 120 120 Driven N/A 9 5/8 2,000 1,656 12 1/4 0 0 629 1,105 12.0 75 8 51/2 6,051 5,050 81/2 1,900 1,591 954 1,150 10.5 20 N/A Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (lb/gal) (sx) (ft /sx) (ft (ft) (gal /sx) Type (cc) ( %) 8 hr 24 hr 9 5/8 Tail Type I Cement 12.0 447 2.47 1,105 0 10.26 Fresh 620 0 325 1,322 5 1/2 Tail Class "G" 10.5 347 3.31 1,150 1,900 12.64 Fresh 40 0 200 888 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: 1. Cement volumes on the production hole are based on 20% over gauge hole. Once the caliper log is obtained the team will need to discuss final excess so as not to put too much hydrostatic pressure on the very low pressure formations, causing loss of cement column. 2. Volume calculations assume 80' of intemal cement for the shoe tracks. See cement prognosis for details and spacer specifications. 3. Centralizers for the casing strings will include at least 1 per joint on the bottom 3 joints as per BLM regulations. 4.19 Bit Summary Interval — MD Type Recommended _ Estimated Expected From To Size WOB Rotating Minimum ROP (ft) (ft) (in) Manufacturer Model No. IADC (kips) RPM Hours (ft/hr) 0 2,000 12 1/4 Christensen MX -1 115 27.5 - 65 Motor 2,000 6,051 8 1/2 Christensen HCM 506Z M323 Up to 29 Motor Best Practices: 1 Comments: See bit prognosis for additional information. Back up bits for the 8' 1/2" hole section will consist of an MXL- 18DX (IADC 447) bit. 8/19/2008 Page 18 of 19 KU 22 -6X • • Marathon Oil Company Drilling Program Alaska 4.20 Hydraulics Summary Max Press @ Displacement @ Max Rate @ Liner ID Stroke 90% WP 95% Vol. eff 95% Vol. eff Hole Sections Used Qty Make Model (in) (in) (psi) (gal /stroke) (spm /gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle AP at Depth -MD Size Rate Pressure Min AV MW ECD Size bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32 "s) (psi) Remarks (Drill string configuration) 0 — 2,000' 12 1/4 700 1,751 137 8.8 9.23 2 — 18 s MI Virtual Hydraulics (@ 2,000' MD) 1 -16 2,000' — 6,051' 8 1/2 500 1,784 259 9.2 10.95 5 — 15's MI Virtual Hydraulics (@ 6,051' MD) Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 2 If losses occur in the Sterling / Upper Beluga, slower pump rates to reduce ECD will be necessary. Hole cleaning will then be determined by fluid properties, sweeps, and proper circulation time to get cuttings out. Comments: See separate hydraulics calculations. Annular velocities in the 12 1/4" and 8 1/2" holes were calculated using 5" drillpipe. 4.21 Formation Integrity Test Procedure The surface casing shoe will be tested to an FIT instead of Leak -off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak -off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and moming reports. 5. Monitor and plot pressure drop and time after shut -in for 10 minutes or until the shut -in pressure stabilizes. FIT tests are to be conducted the same as described by the LOT test above, except in step 4, where the pumping would stop at the specified pressure to achieve an FIT required. Note that Ieakoff is always possible, prior to the specified FIT, due to formation variations. Best Practices: 1 Comments: 8/19/2008 Page 19 of 19 • • Marathon Oil Well KU 22 -6X Diverter Stack Flow Nipple I Flow Line 13 5/8" 5M Annular o. Preventer 13 5/8" 5M Double - Pipe Ram . Bottom of diverter spool must Ram Preventer be 24 -45" from ground level �x for Glacier 1 rig placement. 2 1/16" 5M Blind Ram / Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually \ Operated Valves Operated Valve 3 1/8" 5M Hydraulically Operated Valve _ J _'I' M X -- (Kill I IChok _'I[©,'I X . 13 5/8" 5M Cross �I / -- 11 " Automatic Knife Valve _ � _ 1 13 5/8" 5M x 13 5/8" 5M . _ I• •I Drilling Spool - 111" 5M Diverter Outlet 13 5/8" 5M Tubing Head Flange • 0 Marathon Oil Well KU 22 -6X BOP Stack Flow Nipple I Flow Line 13 5/8" 5M Annular Preventer 13 5/8" 5M Double El Pipe Ram . Bottom of diverter spool must Ram Preventer be 24 -45" from ground level \6. for Glacier 1 rig placement. 2 1/16" 5M . Blind Ram / Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually \ Operated Valves Operated Valve 3 1/8" 5M Hydraulically Operated Valve E X _-_1-- X � Kill � (Chok I'[©IIL X 13 5/8" 5M Cross / 11" 5M Diverter Outlet 4 __ Blind Flanged 13 5/8" 5M x 13 5/8" 5M Drilling Spool I ■ 13 5/8" 5M Tubing Head Flange • • Marathon Oil Well KU 22 -6X Choke Manifold Bleed off Line to To Gas Buster To Blooey Line Shakers r n n Ar Vig la u Vlir u VP II II I I I I I I 00Og - - O p O - - OOOp O O O - - i - - 1I I �I I� � I 1 I ( I I I I I 1I �\ © I r 1 re ■ ■ I I r1 T. I © u ■ ■ u 11(011111(0111 o) 11(0111 lILO : I 3" 5M Valves TIP t IIIIMM I I 2 9/16" 10M Swaco ' ' 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke Gauge Block Choke Hose to HCR r e (from BOP Stack) 0 - 6,000 psi Choke Control Pressure Gauge Pressure Sensor s 1 ht. Mengel tteuuleLu Moog 40111worMr V Mu an•,1rN,w• het Neu* b If)10001.141 • in.usa 'x uuand )1 Mv a -ho• 1 �hbltVYfh 6../.* !,10 UA ltYlaf) )0 sways I A (1 able Mau tieptisVnp oPersl It ll MONO 1} tweets. lueaMM s e 10 ran galvanism m Annular Pressure Valve and gala valves Manually 1 •erg 0 10411 Ixi, It "K"" fa Rdakw srtlualetee rlrM10 1600 psi normally around moo i rnanap rer I i I I I rNleralerA m Ackuolahm r f r Mnm aby Plee•ore Il �.'w' ^'rM Manlb Rp d utske ( ;a annWar oDsraiMO � u Vale- Nantsay in low 0 6(x)0 pressure p sworn INKY Pohl h''' normally For operations oval .11011041 . tf100 1500p61. move to 'Anti prNgt)Nrlphti prslwun 11 i 1 ii. l iA l I Manifold Pressure - g n r;auge 1),,41X1 ,�} normally ,hoops, t I `8 • l 1: r Nitrogen IsnNbon Valve • , ( • High Pressure Prawns seta r_ \ :! * Screen 2 - R�� 4 ENeY1c Nresaurs Switch Autanaltecev stops likA 410, 3000 pal end sleds when — - -: the presses drops to 1 ZT00 r . � F ; 14.1....g. 1111111111111111110 r Marn Air t.hargwi ' . 1 O I., 2..0400 4si p I �''.. I xplosioo Prool Electra Modal 71f ""I ` a , c+ Air Lubricator. Accumulate Reid Vale , � .;• Use SAE 10. set 'Pop Off -set at 3200PS1,f - , - -stags , I ( f, r : at 6 drops; 'T min Check Weevly 1 Be' Guard Triplex Galley I Isolation Air Pressure Switch • Drain Valve Electric Valve for Bypass- Normaly closed. Motor Triplex Air Pumps 60-1 Ratio but open with pressures Triplex Pump- Switch- Pump- above 3000 pa Check ph level Kepp m I Normally IJ Suctron Strainer fr mouthy Pli auto open For Air Pumps ' with tow 40 positron i close for Suction Valve I-or Turn off pressure Air operated when I exceeding Pumps reamians servicing a T 3000 PSI open close during U {, serviceing Suction strainer for Tiplex pump clear every 30 days f 1 • Surface Use Plan for KU 22 -6X Surface Location: Anticipated at823' FSL, 1,833' FEL, Sec. 31, T5N, R11W, S.M. a. Existing Roads Existing roads which will be used for access to KU 22 -6X are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the topographic map. 1. Marathon owns the existing lease road and will maintain the road in a proper manner before, during, and after drilling operations. Plans for maintaining the road would include grating and adding road materials to maintain road grade. This is an unpaved road. 2. Marathon will not use any roads under Forest Service jurisdiction. b. New or Reconstructed Access Roads No new roads will be required to access KU 22 -6X. c. Location of Existing Wells Well KU 22 -6X will be drilled on Kenai Gas Field pad 34 -31. A signed surveyor's drawing is enclosed that shows existing wells and the location of KU 22 -6X. d. Location of Existing and /or Proposed Production Facilities The locations of existing production facilities in the Kenai Gas Field pad 34 -31 are shown on the signed surveyor's drawing. A flowline will be installed from the KU 22 -6X wellhead to the existing production facilities. e. Location and Types of Water Supply A water supply well exists on the pad that KU 22 -6X will be drilled from. This is shown on the surveyor's drawing. Marathon has a Temporary Use Water Permit (A2007 -89) from the Alaska Department of Natural Resources. The well is approved for, potable use a Class C water system by the Alaska Department of Environmental Conservation. f. Construction Materials No major construction is planned on the pad at this time. Leveling of the pad for this work will be done with minimal materials needed. No new dikes or ditches will be constructed. No additional road material will be brought on the pad. There are no topsoil or material stockpiles on the pad. g. Methods of Handling Waste; 1. Mud and Cuttings Cuttings will be dewatered on location. The drilling waste and fluids will be hauled via vacuum truck to Pad 41 -18 of the Kenai Gas Field for disposal into a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81 -176). Marathon obtains a temporary waste storage approval from the ADEC for temporary onsite storage. 2. Solid Waste All household and approved non - hazardous solid waste will be hauled to the Kenai Peninsula Borough Soldotna Landfill. Oily materials (rags and /or plastic liner) are • disposed by a third party. 3. Completion Fluids Clear fluids will be injected into approved disposal wells Kenai Gas Field # 2 (Alaska Oil and Gas Conservation Commission Disposal Injection Order No. 4) or hauled to Pad 34- 31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7 -194). 4. Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. 5. Sewage There is no discharge onsite and all waste water will be hauled to the Kenai sanitation facility by a qualified 3rd party. h. Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately five mobile trailer house type structures will be utilized for this purpose. No camps, airstrips, or staging areas will be constructed. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. A qualified 3 party will collect and transport sanitary wastes to their ADEC approved disposal facility. No additional structures will be necessary. i. Well Site Layout Please see the attached plats identifying the pad and the location of drilling rig over KU 22 -6X, with the approximately planned orientation. The Glacier rig utilizes a closed loop system, no earthen pits are utilized. All fluids are contained in steel tanks as part of the rig package. j. Plans for Surface Reclamation KU 22 -6X will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of KU 22 -6X and the other existing wells on the pad, and will be restored to the satisfaction of the the surface owners and the U.S. Bureau of Land Management. k. Surface ownership The surface owner of the land in the Kenai Gas Field Unit is the Evelyn D Keener Revocable Trust. The minerals are under the jurisdiction of the U.S. Bureau of Land Management. A copy of the surface use plan has been provided to the surface owner, as required. I. Other Information 1. Marathon's Glacier drilling rig has multiple containment features including a timber -diked plastic liner laid on top of the drilling pad. Each rig component sitting on top of the plastic liner has it's own containment system. 2. All rig operations are preceded by a pre -job safety meeting. Marathon acknowledges that all personnel, contract or Marathon employee, can stop the job if there is a safety or environmental concern. • Operator Certification Field: Kenai Gas Field Well: KU 22 -6X Surface Location: Anticipated at 823' FSL, 1,833' FEL, Section 31, Township 5N, Range 11W, SM AK I hereby certify that I, or someone under my direct supervision, have inspected the drill site and access route proposed herein; that I am familiar with the conditions which currently exist; that I have full knowledge of state and Federal laws applicable to this operation; that the statements made in this APD package are, to the best of my knowledge, true and correct; and that the work associated with the operations proposed herein will be performed in conformity with this APD package and the terms and conditions under which it is approved. I also certify that I, or the company I represent, am responsible for the operations conducted under this application. These statements are subject to the provisions of 18 U.S.C. 1001 for the filing of false statements. Executed this 19 day of August , 20 08 Name Willard J. Tank IiL1IJ3L Position Title Advanced Senior Drilling Engineer Address P.O. Box 3128, Houston, TX 77253 -3128 Telephone 713 - 296 -3273 Field Representative Pete Berga (Drilling Superintendent) (if not above signature) Address 3201 C Street, Suite 800, Anchorage, Alaska 99503 (if different from above) Telephone 907 - 565 -3032 (if different from above) E -mail witank(a marathonoil.com (optional) 0 • SCALE 2 00 ^�:/ 6" CASING 1 0 1 ,/ U 22-6X AS-STAKED WATER WELL ' FEET , j ,,,,.``= NAD27 ASP ZONE 4 -c \ j // ":2368176.229 0 _4_ ....., E:270794.501 z 'm ° ' " LATITUDE: 60 2834.173 N o u NORTH LONGITUDE: 151 °16'13.570"W o wl - / / ELEV. 59 FT. (MSL) MW#14 \ -.b..- / HIGH *CAUTION* 1833' FEL KDU s � JRE ® fi 1833' FEL / N 2368202.320 Va METAL T ATE IN E GAS 823' FSL E 27/825.460 --•, O PIPELINE TO A.P.L. / TAL -./. DRUM STORAGE _ ENCLOSURE �� CONTAINMENT ARE •. / BLDG. 16.1'r.30.3 I.R. AND TAN 1 V COMPRESSOR KDU 114 -32 1 _ a . y BUILDING MWfi13 • • 1 (n • . REBOILE MWrtt u WASTE BUILDING ` 0 WATER ` __ TBM ELEV. / BUILDING 4 WATER ON PIPES- ON PIW 58.63' ` O 1 III 9ONTRACTOP- 1 Q 1 a #6 BLDG. j UM' OVER M2 BLDG. 1 I lop II' TYPICA KDU 5 UJ N 236 8043.804 I Z / ' y J1 PIPE E 270905.592 MW #1 Iii MW #3 SUPPORT " O.H. PNV • 't ` . I Z M 61 II: EMV X20.8' • TANKS °' +: ......i• .6 y -., S i ENVIROM • WASTE ,. METER • � •O iy VALVE PIT • BUILDING V WATER WELL " : UILDIN 14. MW #1 f' e W N.D. NO. 1 1 • .- WASTE WASTE CO WATER - 4MW #5 MW#4 • a4W t BLDG. STORAGE JJECTION CONTROL BUILDING /0 MW#1 EMERGENCY BUILDING 8.7'X12.5 TOP EDGE PAD , (APPROX. GENERATOR 14.4'X20.4' _ KU 3431 10'X10' WELL HOUSE • LOCATION) LL. ) N 2367885.677 STORAGE N 2367873$48 Z''' ` BUILDING E 270494.333 E 270536.036 • � N . . • 12'x 24' • J K GF PAD 34 -31 • • WELL "A" KU 11 -6 '1 BALL FIELD ` 10'X10' WELL HOUSE AND OUTFIELD FENCE 1 Al 2367769.867 • • E 270532.384 LAG POLE ., ` "` ``, • F I1 I SHOP CONTROL 41• of, ik ,t . s , ROOM OFFICE �► 7 ___.,„.. ...,,,,, a ®Q *` 9IK%` 9 *�i N..: L COMM. c Ca TOWER ,. • �/ ' 7Y10 `.s / • 1. BASIS OF COORDINATES IS U.S.C. & G.S. TRI STATION AUDRY IN A.S.P. • •' M. SCOTT MCLANE ZONE 4. (NAD 27) AVERAGE CONVERGENCE OF POINTS SHOWN: ' • ' 49 • 2- AUPOSITION ORY GEODETIC POS PER NW: ' , , l' 7 Q LAT: x'3050.559'" LONG: 151 637.445"W , —s .. X II 269,066.75 Y = 2,302,045.42 1 ^ . 8 —S V' � 3) BASIS OF VERTICAL DATUM 16 MEAN SEA LEVEL (I.00AI DATUM). ,' '"" " 1 " 4) SOUTHEAST CORNER SEC. 31 COORDINATES DETERMINED FROM DIRECT 1 , ` , ``` wt SURVEY TIE TO THE TO EXISTING BLM SECTION CORNER ICOVE D AND NOT THE PROTRACTED SECTION COIBIER VALUES. • � ECTtON 31 T5N R11 W, S.M., AK N23s S 1 SECTION LINE _, E NOT TO SCALE E 278613.750 9134.1832 1 � ' REVISION: REVI N KU 22-6X WELL ON KGF PAD 34 -31 ' DATE: P07-06 A AS-STAKED SURFACE LOCATION DIAGRAM ` ORAVMiSY: 1RIA1 LAN • AMA N NAD27 FOR INFORMATIONAL PURPOSES SCALE: 1"410/ ONLY PROJECT NO. MOSS ENGIIEERING /MAPPING /SURVEYING /TESTIN3 900" O$63 C IIuLtin9 Inc P.O. 90X 499 SOLDOTNA, AK 119909 LOCATION SHEET VOICE: (07)29442111 FAX: 01117)11611321111 EMAIL SAUIC,ANEW0CLANECO.COM S31 T5N R11 W SEWARD MERIDIAN, ALASKA 1 of 1 • • • • 1 1 \ GENERAL NOTES: NEW 1. BACKGROUND SUPPLIED BY MCLANES GAS PRODUCTION 131 1 CONSULTING GROUP INC. WELL K 22 -6X ■ ■ N 2. FLOW LINE ROUTING REPRESENTED DRUM STORAGE N: 2367929.756 GAS PRODUCTION ■ APPROXIMATE LOCATION. BLDG. I.R. COMPRESSOR E: 1410822.576 9 WELL K.D.U. -6 ' ; ' ' BLDG. LAT: 60'28'32.026'N ' 1 r LONG: 151'16'21.420 "W `1 LEGEND: ' REBOILBER ■ ELEV. 59 FT. (MSL) ■ = EXISTING FACILITIES BLDG. ' i i • = NEW PRODUCTION WELL 1 W TEMPORARY z I " PRODUCED LIQUIDS !!!! II ® / i STORAGE 11 111111111 a i MOC PAD 34 -31 a M W #6 M W #11 U ^i o PRODUCED I PD TANK ■ N o WI "°° v z GAS PRODUCTION 0 ' LIQUIDS JUMPOVER of ; i BLDG. BLDG. � °° � SEPARATOR �' WELL K.U. 14 -32 a TANK 4 # - - BLDG. o w ■ PRODUCED AIR EXCHANGER la MW #7 ' / LIQUID i MW #2® 6" SCH 80 FLOWLIN ® 12'x8' 22 -6X GAS PRODUCTION MW # ; MW #10 WASTE WATER WELL K.D.U. -5 � (UNDERGROUND) Y HEATER 0 112:1M MW #1 ° VALVE PIT I PRODUCED Na I LIQUIDS ❑ CONTROL VA LVE PIT 1 1 a Myy #gC� TANK G1 METER BLDG. ° WATER BLDG. o BOOSTER BLDG. WELL "E "I w i; INJECTION w I F,', W ELL W D -1 ® • MW # ■ 1 ' I a MW #5 GENERATOR I. R. BLOWDOWN * % GAS PRODUCTION �OUL LIRE - - WELL K.U. -34 -31 . �� P OLE �— - - ________/ ❑ \ ■ ® Q P� + SURVEY WK. PT. c,O G � OF + 0 1/2" REBAR W /C�P / / GAS PRODUCTION r oe , + + WELL K.U. 21 -6 ,,,,'4. \ � K -- �qCH ROA BLDG. AGE BALL FIELD \ I WELL ,� A „ - - GAS PRODUCTION ° WELL K.U. 11 -6 x CI II I REVISIONS REVISIONS ENG. APPROVAL KENAI GAS FIELD PAD 31 -31 KENAI, ALASKA REV DATE BY Oil DESCRIPTION T RE D AIS BY °K GESCRi1ION BY DATE M Marathon CDT KENAI GAS FIELD PAD 34 -31 Oil Company PROCESS NEW PRODUCTION WELL K.U. 22 -6X MAR ATHON ' ETE x • ELECT. SCALE INK LJi 811E 08/06 PILE N L TYPE DREG 1® MSC SYST DWG 10 SIR NO REV • Alaska Region INSTRUL 1' -50' ORR — DATE — ARCH va In APP. — DA1E— F002 B N 01 P 01 5000 01 A A 20/00 Wt RDB ISSUED FOR REFERENCE TAB TAB TAB F S S APP. DATE ■■ u u . u . • • 7 a KU y 14 -32 37-31 U ' KU ^ $ , 34, -2 1 B KU KBU 41-6 -6 .r KDU a i KU 5 .. 21 6X W j 0 KU 22 -6X DU 4- 5 •�U - 6 i KTU. KTU }6 43 -6XR< KBU 6 23X-6 .3 KBU K 3 3-KBU 5 4K3-6A KTU S 11 f ( .. j KTU U 24 -6H K= 24 - 6R� ' KU ' 9 c -6RD KOU t , 24 -5 KU -U2 � 24 - 5RD ` s KOU ,. m : J r - ,.. a KBU ' 1 - 24-6 •= j t ., ,.. � � u 4 0 , Y..� k ,; ,. , � KBU 1 D p . 1 4 -.. t t -ax r, yf ' 441,17.„41111111 KDU I K t ' 7 KU ..; KBU 1 7X KU f 5 n - 3 11 -8 J KTU BU 4 � , F KT + 4 32.7 j 7 ; KBU 1 }8 KDU KBU To, ,: 3 }7 KU • 33 -12 7 C 4 7 5 - 3 -7X Marathon Oil Company KBU 24- X KUH % ,t 41 -',I18 241-,7 ■ °a c t 9 S ' 1 Beluga /Tyonek PA 5 $ e Kenai Gas Field, Alaska 0.25 mi • • • N 3 2 2 KU 7 , N W N 17-32 3 34-31 1 WDU 1 �N Z -1' .' 34 -2 �K M \ y 1 KU n KBU 41 -6 P y 6 K DU KU 6 5 8 21 -6X th le y.rf C `� Ilt, DU C� 2 -sx / c 6 S 5 • c U_42-6 �1 0 KTU - 00111.1k, KTU 13-6 43-6XR KBU 6 23X -g 8 it' 5 KBU K . 4 5 33 -6 5 \ KU - • P 0 � KBU 1 6 . 43 -6A KTU • 5 5 5 A13 KTU / KU 24-6H K 24 6 6 6R� 5 $ : •6RD KDU 0 S5 ( 4 /S 24 -5 • S K 2 3 5 " 0 U,2 yL 4 24 -SRD�. KDU N .. '\ O P \ \ -\, 1 P 8 3 1 �t' 24-6 3 0 U , KBU 1 0 ' \�1 -7 P r/ P f �, [r� KDU 2 a \ '14r,„ 2 4 14 W P ul K= 1 7 gg U ^ 5 • y\ 1 - I 11-8 P 3 KTU 6y 3 2 B y 32 -7H 1 ' P S .2 -7 S r / c /6 3 e 4 T KT + P 32 7 6 4 S KBU 6 13 -8 KDU K e 4RD 3 7 CO 5 43 -12 8 .46 6 9 4 : -7 1 6 3-7X 6 S .,.... Mar_ hon Oil Company KBU 24- X 4 KUH KU v 4 1-18 24 -7 0 47 • V 3 ' vi 1 y 5 5 ? 7 11 - P 5 N • J y 2 )p 4, . N A .... Beluga /Tyonek PA Kenai Gas Field, Alaska 0.25 mi ID • TOPO! map printed on 08/19/08 from "MOC_KU 22- 6x_Map.tpo" 151 °18.000' W 151 °16.000' W 151 °14.000' W 151 °12.000' W 151 °10.000' W WGS84 151 °07.000' W , . A l $ 1 6 t - 15 t 11 • • 13 13 1 z 1 �� r i` • z. / , o • °.- Q KI SIIOf •-. Xi-0' 11 0 rn • i i 3lir _ rca ' m : 19 t 2' 0 ;: ` 2 1 A a 24 � � �° d 1 ! z5 ) t.., e z i Y Via.• ! ` Kenai B -3 uad r3 j z: O • i ,. r- �:° i � �� a PIPELINE , '� �, 0 3 1 29 28 1 \ t 6. _— -- 25 � 25 1 o o 3 1 . , o f , � r • • 30 - - - 29 G8 » era* a • a 1 .. •26 2 5 25 I f -. :',.. 1 ,/ f stM — % !.. 1 i 1 5.."---": .7 � I Pad 3 -30 I 1 • a "h I Kenai B 4 Quad I `_ t ' �� I Z IKal ifa rrol�Be achRoadl ... I••. —4-1—:.. CO P i la��.: z c, .. -001- Inlet � 1 I Prnrue Read l • • _, �� � , . � I �� c;-, 1` ` ,31j 32 33 34 35 V . I '36 , 6 1 4 ° 0 I Pad 3431 Pro'ect Location I e landing , • I Marathon Production Office r •+ _ . ' —. - ' • a '.� z . •,.p ..row 1 -.., _.:.: _ ..�N 2 , ; + i ILEN�I (_' �ti FIELD a _ 3 0 a � A " • 1 7. • • • !! 1 o P i t -1 ° .Gds Wads ..so i. ' -� -- ! M Il -7 I ___ —._ I Pad 14-4 (k �utim:� . • � ' 'S I km!. Road I Land z i o o . • 12 7 8 9 J o ; ,• 1 1 Strip.,... �� ` � F o rsJ o � i.. I ' ' r. - 1 t "> 4 `c) ® I � r / h 2 �� Q z 13 18 17 16u ''°*, 14 ' q O . A .� . I tiJ p o i b y i ( ) f 0 N GrA Yatll • a .. _ r _ ) ' i ) .4''... _ Gravel Lc C Pit' o T 7 Fa 5 a �— i` a nz, i I Pad 44 -19 (Abavdamded) I Y % I'' �� 2 4 ' =- • 4 ? C trip -< ,.: to � �� i . KsYdwuky I i ) tl Map created with,TOPO!:R -©2006 National. Geographic li " � ° 151 °18.000' W 151 °16.000' W 151 °14.000' W 151 °12.000' W 151 °10.000' W WGS84 151 °07.000' W TN MN NATIONAL 0.0 0.5 I I 1.0 1.5 2.0 miles 19° GEOGRAPHIC , ,, I I i h l I , I I , I I I , I J F l l 0.0 0.5 1.0 1.5 2.0 2.5 3.0 km 08/19/08 GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT ...------14"PH likk14%%. " • T1 ' XZY14Y 3'X • W r 7 L ii D1TA 3406 1 — - CENTRffliGn V �, ■ I i , 4' 5V 9L 5W 9L ■ • • A -600 PT A-600 PT AMP 75 If 75 IP 75 IP 75 IP 1 DITA 3406 1 . �� I ' m s. 6X 6X5 6X5 6X3 - T „ _ I • _ 1 IP 1 1• Il• u, t - 1% j a_t _ Z t 2 i . i z 1 n• Host , I L -11 , L - -J u • r 4. • • t • a it 1 r a 1 1 111 1 il !L 0 i d • • • • • • • •/ c ] r 1 --„---1 A : r 1 ��� �� I i - 10 r !•Y FILL Ri M RATHON Oil Compan was Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KU22-6X H BALKER UGHES Field: Kenai Gas Field (NAD83) Well: KU22 -0X Facility: Pad #34 -31 Wellbore: KU22 -6X INTEQ MARATHON Plot reference wellpath is KU22 -6X Version #2 True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 80 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #34 -31): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 12- Aug -08 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Pad #34 -31 1412641.825 2367073.563 60 °28'23.940 "N 151°15'44.801"W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude slot #KU22 -6X 821.20 - 1835.40 1410822.580 2367929.760 60 °28'32.026 "N 151°1621.420"W Comment Converted to As- Staked coordinates 23- Jul -08 Planning (RKB) to Mud line (Facility: Pad #34 -31) 80ft Mean Sea Level to Mud line (Facility: Pad #34 -31) Oft Planning (RKB) to Mean Sea Level 80ft Well Profile Data Design Comment MD (ft) Inc ( Az ( TVD (ft) Local N (ft) Local E (ft) DLS ( °/100ft) VS (ft) RKB 80' 0.00 0.000 150.000 0.00 0.00 0.00 0.00 0.00 KOP 200.00 0.000 150.000 200.00 0.00 0.00 0.00 0.00 Begin Turn to Target 800.00 24.000 150.000 782.61 - 107.25 61.92 4.00 123.31 End of Build 1440.62 49.412 144.166 1292.15 - 422.55 273.00 4.00 502.62 Begin Angle Drop 3034.97 49.412 144.166 2329.45 - 1404.13 981.83 0.00 1713.33 Sterling Pool6 (EOD) 5505.58 0.000 144.166 4505.00 - 2215.59 1567.81 2.00 2714.20 Upper Beluga 5750.58 0.000 144.166 4750.00 - 2215.59 1567.81 0.00 2714.20 Upper Beluga U5 5900.58 0.000 144.166 4900.00 - 2215.59 1567.81 0.00 2714.20 TD 6050.58 0.000 144.166 5050.00 - 2215.59 1567.81 0.00 2714.20 Hole and Casing Sections Start End Start End Start Start End End Name MD (ft) MD (ft) Interval (ft) TVD (ft) ND (ft) Local N (ft) Local E (ft) Local N (ft) Local E (ft) Wellbore 12 1/4" Open Hole 0.00 2000.00 2000.00 0.00 1656.09 _ 0.00 0.00 - 766.94 521.69 KU22 -6X 9 5/8" Casing Surface 0.00 2000.00 2000.00 0.00 1656.09 0.00 0.00 - 766.94 521.69 KU22 -6X 8 1/2" Open Hole 2000.00 6050.58 4050.58 1656.09 NA _ - 766.94 521.69 NA NA KU22 -6X 5 1/2" Casing Production 0.00 6050.58 6050.58 0.00 NA 0.00 0.00 NA NA KU22 -6X Targets Name MD (ft) TVD (ft) Local N (ft) Local E (ft) Gild East (USft) Grid North (USft) Latitude Longitude KU22 - Sterling P0016 (NAD83) 23 - Jul 4505.00 - 2215.59 1567.81 1412347.22 2365684.38 60 °28'10.206 "N 151'15'50.145 "W KU22 - Upper Beluga (NAD83) 23 - Jul - 4750.00 - 2215.59 1567.81 1412347.22 236568438 60 °28'10.206 "N 151 1550.145"W KU22 - Upper Beluga U5 (NAD83) 23 - Jul - 4900.00 - 2215.59 1567.81 1412347.22 2365684.38 60 °28'10.206 "N 15115'50.145 "W KU22 - TD (NAD83) 23 - Jul -08 5050.00 - 2215.59 1567.81 1412347.22 2365684.38 60 °28'10.206 "N 151 15'50.145"W ARATHON Oil Coma p BAKER Location: Cook Inlet, Alaska (Kenai Peninsula) Slot: slot #KU22-6X 11411101111111 Field: Kenai Gas Field (NAD83) Well: KU22 -6X MARATHON Facility: Pad #34 -31 Wellbore: KU22 -6X INTEQ Plot reference wellpath is KU22 -6X Version #2 True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 80 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #34 -31): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 12- Aug -08 Smbi inch. SOOfl Easting (ft) 0 250 500 750 1000 1250 1500 1750 1 1 1 1 1 1 1 1 P - 375 — slot #KU22 - 6X RK: 80' — 0 I∎ Begin Turn to Target 0 — •- • KB 80' — -250 KOP ,■ 4.00° 975 — End of Build 4.00 ° /100ft — -500 16.00° 750 Begin Turn to Target 0 27.94° � — -750 4 00 ° /100ft 9 5/8" Casing Surface )) 1125 — 39.84° -- Z End of Build 1500 — co 5 9 5/8" Casing Surface — -1250 1875 — Begin Angle Drop — -1500 s • 2250 — n 49.41° Begin Angle Drop — -1750 4) 0 u 43.31° o f 2625 — 4) 36.91 — -2000 2 Sterling A8 h 3000 — 30. 91 ° " Sterling Pool6 (EOD) KU22 -6X Sterlingg P 916 (ND83) 33 Jul -08 KU22-6X Up Beluga U N ) 23-Jul-08 � G `'d� 2 00 °MOOR 2491° ° KU22 -6X TD (NAD83) 23-Jul-08 3375 — 18.91° ° Sterling A8 3750 — 12.51° „ 4125 — 6.51° 0 4500 — KU22 -6X Sterling Poo16 (NAD83) 23 -Jul -08 ' ° " Sterling Poo16 (EOD) KU22 -6X Upper Beluga (NAD83) 23-Jul-08 Upper Beluga 4875 — KU22-6X Upper Beluga U5 (NAD83) 23-Jul-08 Upper Beluga U5 KU22 -6X TD (NAD83) 23-Jul-08 TD 5250 — 1 1 1 1 1 1 1 1 1 1 0 375 750 1125 1500 1875 2250 2525 9000 3375 Vertical Section (ft) S ab i M h• 750 fl Azimuth 144.72° with reference 0.00 N, 0.00 E Planned Wellpath Geographic Report Report Generated 13-Aug -08 at 06:25:10 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.99996 Field Kenai Gas Field (NAD83) Horizontal Reference Point Slot Facility Pad #34 -31 1 Vertical Reference Point Planning (RKB) Slot slot #KU22 -6X MD Reference Point Planning (RKB) Well KU22 -6X Field Vertical Reference Mean Sea Level Wellbore KU22 -6X Planning (RKB) to Facility Vertical Datum 80.00 ft Wellpath KU22 -6X Version #2 Planning (RKB) to Mean Sea Level 80.00 ft Wellbore Last Revised 07/04/2008 Facility Vertical Datum to Mud Line (Facility; 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 144.72° -- - -- Local North Local East Grid East Grid North Latitude Longitude [ft) (ft] [USft] [USft] Slot Location 821.20 - 1835.40 1410822.58 2367929.76 60 ° 28'32.026 "N 151 °1621.420"W Facility Reference Pt 1412641.83 2367073.56 60 ° 28'23.940 "N 151 15'44.801 "W Field Reference Pt 1410937.15 2361824.52 60 °27'31.931"N 151 "W *NAD 83 coordinates are converted to NAD 27 usin • Cor • scon 6.0.1 US Arm Corps of En. ineers' TVD from MD Inclination Azimuth TVD Fld Ref North East God East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [`] [ [ft] [ft] [ft] [ft) [ft) [ft] [ft] [ft] ] i1o0ft] [°) [°iiooft] ] i10oft] [ft] 0.00 0.00 150.00 0.00 -80.00 0.00 0.00 1410822.58 2367929.76 270802.313 2368168.442 60 °28'32.026 "N 151 °1621.420 "W 0.00 0.00 0.00 0.00 0.00 100.00 0.00 150.00 100.00 20.00 0.00 0.00 1410822.58 2367929.76 270802.313 2368168.442 60 °28'32.026 "N 151 °1621.420 "W 0.00 0.00 0.00 0.00 0.00 200.00 0.00 150.00 200.00 120.00 0.00 0.00 1410822.58 2367929.76 270802.313 2368168.442 60 °2832.026 "N 151 °1621.420 "W 0.00 150.00 0.00 0.00 0.00 300.00 4.00 150.00 299.92 219.92 -3.02 1.74 1410824.27 2367926.71 270804.003 2368165.392 60 °28'31.996"N 151 °1621.385 "W 4.00 0.00 4.00 0.00 3.47 400.00 8.00 150.00 399.35 319.35 -12.07 6.97 1410829.32 2367917.56 270809.053 2368156.242 60 °28'31.907"N 151 °1621.281"W 4.00 0.00 4.00 0.00 13.88 500.00 12.00 150.00 497.81 417.81 -27.11 15.65 1410837.70 2367902.36 270817.433 2368141.041 60 °28'31.759"N 151 °1621.108"W 4.00 0.00 4.00 0.00 31.17 600.00 16.00 150.00 594.82 514.82 -48.05 27.74 1410849.39 2367881.18 270829.124 2368119.861 60 °28'31.553 "N 151 °1620.866'W 4.00 0.00 4.00 0.00 55.25 700.00 20.00 150.00 689.91 609.91 - 74.81 43.19 1410864.32 2367854.13 270844.054 2368092.811 60 °2831.289'N 151 °1620.558 "W 4.00 0.00 4.00 0.00 86.02 800.00 24.00 150.00 782.61 702.61 - 107.25 61.92 1410882.41 2367821.34 270862.144 2368060.02 60 °2830.970 "N 151 °1620.185 "W 4.00 -10.28 4.00 0.00 123.31 900.00 27.94 148.48 872.49 792.49 - 144.85 84.35 1410904.11 2367783.32 270883.845 2368022 60 °2830.600 "N 151 °1619.737"W 4.00 -8.91 3.94 -1.52 166.96 1000.00 31.90 147.31 959.14 879.14 - 187.07 110.88 1410929.82 2367740.59 270909.556 2367979.269 60 °28'30.184 "N 151 °1619.208 "W 4.00 -7.90 3.96 -1.17 216.76 1100.00 35.87 146.37 1042.14 962.14 - 233.72 141.39 1410959.42 2367693.36 270939.157 2367932.038 60 °2829.724"N 151 °16'18.599"W 4.00 -7.12 3.97 -0.94 272.46 1200.00 39.84 145.60 1121.09 1041.09 - 284.56 175.73 1410992.77 _ 2367641.87 270972.508 2367880.547 60 °2829.224 "N 151 °1617.914 "W 4.00 -6.51 3.97 -0.77 333.79 1300.00 43.82 144.94 1195.59 1115.59 - 339.35 213.73 1411029.70 2367586.36 271009.439 2367825.036 60 °2828.684 "N 151 16'17.156"W 4.00 -6.02 3.98 -0.65 400.47 1400.00 47.80 144.38 1265.29 1185.29 - 397.81 255.20 1411070.04 2367527.10 271049.78 2367765.775 60 °2828.108 "N 15196'16.328"1N 4.00 -5.63 3.98 -0.57 472.15 1440.62 49.41 144.17 1292.15 1212.15 -422.55 273.00 1411087.35 2367502.03 271067.091 2367740.704 60 °28'27.865 "N 151 1615.973"W 4.00 0.00 3.98 - 0.52 502.62 1500.00 49.41 144.17 1330.78 1250.78 -459.11 299.40 1411113.04 2367464.97 271092.781 2367703.643 60 °2827.505 "N 151°16'15.447"W 0.00 0.00 0.00 0.00 547.71 1600.00 49.41 144.17 1395.84 1315.84 - 520.67 343.86 1411156.29 2367402.56 271136.033 2367641.232 60 °2826.898 "N 151 °1614.560 "W 0.00 0.00 0.00 0.00 623.65 1700.00 49.41 144.17 1460.90 1380.90 - 582.24 388.31 1411199.55 2367340.15 271179.294 2367578.82 60 °2826.292 "N 151 °16'13.673 "W 0.00 0.00 0.00 0.00 699.58 1800.00 49.41 144.17 1525.96 1445.96 - 643.81 432.77 1411242.81 2367277.74 271222.556 2367516.408 60 °2825.686 "N 151 °16'12.786 "W 0.00 0.00 0.00 0.00 775.52 1900.00 49.41 144.17 1591.02 1511.02 - 705.37 477.23 1411286.07 2367215.33 271265.817 2367453.997 60 °2825.079 "N 151 °1611.899"W 0.00 0.00 0.00 0.00 851.46 2000.00 49.41 144.17 1656.09 1576.09 - 766.94 521.69 1411329.33 2367152.92 271309.078 2367391.585 60 °2824.473 "N 151 °16'11.012"W 0.00 0.00 0.00 0.00 927.40 2100.00 49.41 144.17 1721.15 1641.15 - 828.50 566.15 1411372.59 2367090.50 271352.34 2367329.164 60 °2823.867"N 151°16'10.125"W 0.00 0.00 0.00 0.00 1003.33 2200.00 49.41 144.17 1786.21 1706.21 - 890.07 610.61 1411415.85 2367028.09 271395.601 2367266.752 60 °2823.260 "N 151 °16'09.238"W 0.00 0.00 0.00 0.00 1079.27 2300.00 49.41 144.17 1851.27 1771.27 - 951.64 655.07 1411459.11 2366965.68 271438.863 2367204.34 60 °2822.654 "N 151 °16'08.351"W 0.00 0.00 0.00 0.00 1155.21 2400.00 49.41 144.17 1916.33 1836.33 - 101320 699.53 1411502.37 2366903.27 271482.124 2367141.929 60 °28'22.048 "N 151 °1607.464"W 0.00 0.00 0.00 0.00 1231.14 2500.00 49.41 144.17 1981.39 1901.39 - 1074.77 743.99 1411545.63 2366840.86 271525.386 2367079.517 60 °28'21.441 "N 1511606.578 "W 0.00 0.00 0.00 0.00 1307.08 2600.00 49.41 144.17 2046.45 1966.45 - 1136.34 788.45 1411588.89 236677845 271568.647 2367017.106 60 °28'20.835 "N 1511605.691 "W 0.00 0.00 0.00 0.00 1383.02 • 2700.00 49.41 144.17 2111.52 2031.52 - 1197.90 832.91 1411632.14 2366716.04 271611.898 2366954.694 60 °2820.229"N 151 16'04.804 "W 0.00 0.00 0.00 0.00 1458.96 2800.00 49.41 144.17 2176.58 2096.58 - 1259.47 877.37 1411675.40 236665302 271655.16 2366892.272 60 °2819.622 "N 151 °1603.917"W 0.00 0.00 0.00 0.00 1534.89 2900.00 49.41 144.17 2241.64 2161.64 - 1321.03 921.82 1411718.66 2366591.21 271698.421 2366829.861 60 °28'19.016 "N 151 °16'03.030 "W 0.00 0.00 0.00 0.00 1610.83 3000.00 49.41 144.17 2306.70 2226.70 - 1382.60 966.28 1411761.92 2366528.80 271741.683 2366767.449 60 °28'18.410 "N 151 °1602.143 "W 0.00 0.00 0.00 0.00 1686.77 3034.97 49.41 144.17 2329.45 2249.45 - 1404.13 981.83 1411777.05 2366506.97 271756.813 2366745.618 60 °28'18.198 "N 151 °16'01.833 "W 0.00 180.00 0.00 0.00 1713.33 3100.00 48.11 144.17 2372.32 2292.32 - 1443.77 1010.46 1411804.91 2366466.79 271784.674 2366705.437 60 °2817.807 "N 151 °16'01.262 "W 2.00 180.00 -2.00 0.00 1762.22 3200.00 46.11 144.17 2440.37 2360.37 - 1503.17 1053.35 1411846.64 2366406.58 271826.406 2366645.225 60 °2817.222"N 151 °16'00.407 "W 2.00 - 180.00 -2.00 0.00 1835.48 3300.00 44.11 144.17 2510.94 2430.94 - 1560.60 1094.83 1411887.00 2366348.35 271866.767 2366586.994 60 °28'16.657"N 151 °1559.579'W 2.00 180.00 -2.00 0.00 1906.32 3400.00 42.11 144.17 2583.94 2503.94 - 1616.01 1134.84 1411925.92 , 2366292.19 271905.688 2366530.832 60 °2816.111 "N 151 °15'58.781"W 2.00 180.00 -2.00 0.00 1974.66 3500.00 40.11 144.17 2659.28 2579.28 - 1669.31 1173.33 1411963.38 2366238.15 271943.15 2366476.791 60 °2815.586 "N 15195'58.014"W 2.00 180.00 -2.00 0.00 2040.41 3600.00 38.11 144.17 2736.87 2656.87 - 1720.45 1210.26 1411999.31 2366186.31 271979.081 2366424.949 60 °28'15.082 "N 151 9657.277 "W 2.00 180.00 -2.00 0.00 2103.48 3700.00 36.11 144.17 2816.61 2736.61 - 1769.36 1245.58 1412033.68 2366136.73 272013.452 2366375.368 60 °28'14.601 "N 151 °1556.572 "W 2.00 180.00 -2.00 0.00 2163.81 3800.00 34.11 144.17 2898.41 2818.41 - 1815.99 1279.25 1412066.44 2366089.46 272046.213 2366328.097 60 °28'14.141 "N 151 °15'55.901"W 2.00 180.00 -2.00 0.00 2221.33 3900.00 32.11 144.17 2982.17 2902.17 - 1860.28 1311.23 1412097.56 2366044.57 272077.334 2366283.205 60 °28'13.705 "N 151 °1 5.55.263"W 2.00 180.00 -2.00 0.00 2275.95 4000.00 30.11 144.17 3067.78 2987.78 - 1902.16 1341.48 1412126.99 2366002.11 272106.765 2366240.744 60 °28'13.293 "N 151 15'54.660 "W 2.00 180.00 -2.00 0.00 2327.61 4100.00 28.11 144.17 3155.14 3075.14 - 1941.60 1369.96 1412154.70 2365962.12 272134.476 2366200.753 60 °2812.904 "N 151 °15'54.092 "W 2.00 180.00 -2.00 0.00 2376.26 4200.00 26.11 144.17 3244.15 3164.15 - 1978.55 1396.64 1412180.66 2365924.67 272160.437 2366163.302 60 °2812.540 "N 151 °15'53.559"W 2.00 180.00 -2.00 0.00 2421.83 4300.00 24.11 144.17 3334.69 3254.69 - 2012.95 1421.48 1412204.84 2365889.80 272184.618 2366128.431 60 °2812.201 "N 151 °15'53.064 "W 2.00 180.00 -2.00 0.00 2464.26 4400.00 22.11 144.17 3426.66 3346.66 - 2044.77 1444.46 1412227.19 2365857.54 272206.969 2366096.17 60 °28'11.888"N 151 °15'52.606 "W 2.00 180.00 -2.00 0.00 2503.51 4500.00 20.11 144.17 3519.94 3439.94 - 2073.97 1465.55 1412247.71 2365827.94 272227.489 2366066.569 602811.600 "N 151 15'52.185"W 2.00 180.00 -2.00 0.00 2539.53 4595.34 18.21 144.17 3610.00 3530.00 - 2099.34 1483.86 1412265.53 2365802.23 272245.31 2366040.859 60 °28'11.351"N 151 °15'51.820"W 2.00 180.00 -2.00 0.00 2570.81 Sterling A8 4600.00 18.11 144.17 3614.43 3534.43 - 2100.51 1484.71 1412266.36 2365801.03 272246.14 2366039.658 60 °2811.339 "N 151 °15'51.803"W 2.00 180.00 -2.00 0.00 2572.26 4700.00 16.11 144.17 3710.00 3630.00 - 2124.37 1501.94 1412283.12 2365776.85 272262.901 2366015.478 60 °2811.104 "N 151 °15'51.459"W 2.00 180.00 -2.00 0.00 2601.68 4800.00 14.11 144.17 3806.53 3726.53 - 2145.50 1517.20 1412297.97 2365755.43 272277.751 2365994.057 60 °28'10.896"N 151 °15'51.155"W 2.00 180.00 -2.00 0.00 2627.75 4900.00 12.11 144.17 3903.92 3823.92 - 2163.89 1530.48 1412310.89 2365736.79 272290.672 2365975.417 60 °2810.715 "N 1511550.890 "W 2.00 180.00 -2.00 0.00 2650.43 5000.00 10.11 144.17 4002.04 3922.04 - 2179.51 1541.76 1412321.87 2365720.95 272301.652 2365959.576 60 °28'10.561 "N 151 °15'50.665 "W 2.00 180.00 -2.00 0.00 2669.70 5100.00 8.11 144.17 4100.77 4020.77 - 2192.35 1551.03 1412330.89 2365707.93 272310.672 2365946.556 60 °28'10.435 "N 151 °1550.480 "W 2.00 180.00 -2.00 0.00 2685.54 Page 1 of 2 Planned Wellpath Geographic Report Report Generated 13- Aug -08 at 06:25:10 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.99996 Field Kenai Gas Field (NAD83) Horizontal Reference Point Slot Facility Pad #34 -31 I Vertical Reference Point Planning (RKB) Slot slot #KU22-6X MD Reference Point Planning (RKB) Well KU22 -6X Field Vertical Reference Mean Sea Level Wellbore KU22 -6X Planning (RKB) to Facility Vertical Datum 80.00 ft Wellpath KU22 -6X Version #2 Planning (RKB) to Mean Sea Level 80.00 ft Wellbore Last Revised 07/04/2008 Facility Vertical Datum to Mud Line (Facility' 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 144.72° --- - -- Local North Local East Grd East Grid North Latitude Longitude [ft] [ft] [USft] [USft] Slot Location 821.20 - 1835.40 1410822.58 2367929.76 60 °28'32.026 "N 1511621.420 "W Facility Reference Pt 1412641.83 2367073.56 60 °2823.940 "N 151 15'44.801 "W Field Reference Pt 1410937.15 2361824.52 60 ° 27'31.931 "N 151 16'16.783 "W "NAD 83 coordinates are converted to NAD 27 usin • Cor•scon 6.0.1 (US Army Corps of Engineers: TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude OLS Toolface Build Rate Turn Rate Vert Sect Comments [5] [°] [°] [ft) [ft] [ft] [ft] [ft] [ft] [ft] [ft) [°I100ft] [°] [°It00ft] [°1100ft) [ft] 5200.00 6.11 144.17 4200.00 4120.00 - 2202.39 1558.28 1412337.94 2365697.76 272317.722 2365936.385 60 °28'10.336 "N 1511550.336 "W 2.00 - 180.00 -2.00 0.00 2697.92 5300.00 4.11 144.17 4299.60 4219.60 - 2209.61 1563.50 1412343.02 2365690.44 272322.803 2365929.065 60 °2810.265 "N 1511550.232 "W 2.00 180.00 -2.00 0.00 2706.83 5400.00 2.11 144.17 4399.45 4319.45 - 2214.01 1566.68 1412346.11 2365685.98 272325.893 2365924.605 60 °28'10.221 "N 151 1550.168 "W 2.00 - 180.00 -2.00 0.00 2712.25 5500.00 0.11 144.17 4499.42 4419.42 - 2215.58 1567.81 1412347.21 2365684.38 272326.993 2365923.005 60 °2810.206 "N 15115'50.146"W 2.00 180.00 -2.00 0.00 2714.19 5505.58 0.00 144.17 4505.00 4425.00 - 2215.59 1567.81 1412347.22 2365684.38 272327.003 2365923.005 60 °2810.206 "N 15115'50.145"W 2.00 0.00 -2.00 0.00 2714.20 5600.00 0.00 144.17 4599.42 4519.42 - 2215.59 1567.81 1412347.22 2365684.38 272327.003 2365923.005 60 °28'10.206"N 1511550.145'W 0.00 0.00 0.00 0.00 2714.20 5700.00 0.00 144.17 4699.42 4619.42 - 2215.59 1567.81 1412347.22 2365684.38 272327.003 2365923.005 60 °2810.206"N 151 °15'50.145"W 0.00 0.00 0.00 0.00 2714.20 5750.58 0.00 144.17 4750.00 4670.00 - 2215.59 1567.81 1412347.22 2365684.38 272327.003 2365923.005 60 °28'10.206 "N 15115'50.145"W 0.00 0.00 0.00 0.00 2714.20 5800.00 0.00 144.17 4799.42 4719.42 - 2215.59 1567.81 1412347.22 2365684.38 272327.003 2365923.005 60 °2810.206 "N 151 °15'50.145 "W 0.00 0.00 0.00 0.00 2714.20 5900.00 0.00 144.17 4899.42 4819.42 - 2215.59 1567.84 1412347.22 2365684.38 272327.003 2365923.005 60 °2810.206 "N 151 1550.145 "W 0.00 0.00 0.00 0.00 2714.20 5900.58 0.00 144.17 4900.00 4820.00 - 2215.59 1567.81 1412347.22 2365684.38 272327.003 2365923.005 60 °28'10.206 "N 15115'50.145"W 0.00 0.00 0.00 0.00 2714.20 6000.00 0.00 144.17 4999.42 4919.42 - 2215.59 1567.81 1412347.22 2365684.38 272327.003 2365923.005 60 °28'10.206 "N 1511550.145"W 0.00 0.00 0.00 0.00 2714.20 6050.58 0.00 144.17 5050.00 4970.00 - 2215.59 1567.81 1412347.22 2365684.38 272327.003 2365923.005 60 °28'10.206"N 1511550.145"W 0.00 0.00 0.00 0.00 2714.20 Page 2 of 2 AA Planned Wellpath Report IQ.. KU22 -6X Version #2 1111100Plaw MARATHON Page 1 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 -6X Area Cook Inlet, Alaska (Kenai Peninsula) Well KU22 -6X Field Kenai Gas Field (NAD83) Welibore KU22 -6X Facility Pad #34-31 REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Jonethoh Scale 0.99996 Report Generated 12- Aug -08 at 13:59:11 Convergence at slot 1.11° West Database /Source file WA Anchorage/KU22- 6X.xml WELLPATH LOCATION NM= Local coordinates Grid coordinates Geographic coordinates North[ft] IIIEMMHIME =Ill Northing[USft] Latitude Longitude Slot Location 821.20 - 1835.40 1410822.58 2367929.76 60 0 28'32.026 "N 151 °1621.420 "W Facility Reference Pt IIIMIIIIIIIIIIIIIIIMI 1412641.83 2367073.56 60 °28'23.940 "N 151°15'44.801"W Field Reference Pt 1111.111111111 1410937.15 2361824.52 60'27'31.931"N 151'16'16.783"W WELLPATH DATUM Calculation method Minimum curvature Planning (RKB) to Facility Vertical Datum 80.00ft Horizontal Reference Pt Slot Planning (RKB) to Mean Sea Level 80.00ft Vertical Reference Pt Planning (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Planning (RKB) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth 144.72° Wellpath Report D E Planned Well R p p BAKER KU22 -6X Version #2 HUGHES MARATHON Page 2 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KU22 -6X Field Kenai Gas Field (NAD83) Wellbore KU22 -6X Facility Pad #34 -31 ELLPATH DATA (67 stations) t = interpolated /extrapolated station • MD Inclination Azimuth TVD Vert Sect North East DLS [ft] [ °1 [ [ft] [ft] [ft] [ft] [ ° /100ft] 0.00 0.000 150.000 0.00 0.00 0.00 0.00 0.00 100.00# 0.000 150.000 100.00 0.00 0.00 0.00 0.00 200.00 0.000 150.000 200.00 0.00 0.00 0.00 0.00 300.00t 4.000 150.000 299.92 3.47 -3.02 1.74 4.00 400.00t 8.000 150.000 399.35 13.88 - 12.07 6.97 4.00 500.001' 12.000 150.000 497.81 31.17 -27.11 15.65 4.00 600.001' 16.000 150.000 594.82 55.25 -48.05 27.74 4.00 700.00# 20.000 150.000 689.91 86.02 -74.81 43.19 4.00 800.00 24.000 150.000 782.61 123.31 - 107.25 61.92 4.00 27.944 148.477 872.49 166.96 - 144.85 8425 4.00 1000.00t 31.902 147.306 959.14 216.76 - 187.07 110.88 4.00 1100.00t 35.867 146.368 1042.14 272.46 - 233.72 141.39 4.00 1200.001' 39.839 145.595 1121.09 333.79 - 284.56 175.73 4.00 1300.00t 43.815 144.941 1195.59 400.47 - 339.35 213.73 4.00 - ,.n, 1400.001 47.795 144375 1265.29 472.15 - 397.,81 ,_ 255.20 4.00 1440.62 49.412 144.166 1292.15 502.62 - 422.55 273.00 4.00111 1500.001 49.412 144.166 1330.78 547.71 - 459.11 299.40 0.00 1600.00t 49.412 144.166 1395.84 623.65 - 520.67 343.86 0.00 1700.00 49.412 144.166 1460.90 699.58 - 582.24 388.31 0.00 49;412 1':. o ', °`: 1525A : H 7;; , „ - 643.81 432.77 : -' 0.00 1900.00t 49.412 144.166 1591.02 851.46 - 705.37 477.23 0.00 2000.00t 49.412 144.166 1656.09 927.40 - 766.94 521.69 0.00 2100.001' 49.412 144.166 1721.15 1003.33 - 828.50 566.15 0.00 2200.001' 49.412 144.166 1786.21 1079.27 - 890.07 610.61 0.00 . � 4 _ 49.412 144.166 1851 ".27' 115521 - 951.64 655.07 i.i 2400.001' 49.412 144.166 1916.33 1231.14 - 1013.20 699.53 0.00 2500.001* 49.412 144.166 1981.39 1307.08 - 1074.77 743.99 0.00 2600.00# 49.412 144.166 2046.45 1383.02 - 1136.34 788.45 0.00 2700.00 49.412 144.166 2111.52 1458.96 - 1197.90 832.91 0.00 1534.89 - 1259`7';77.3 Planned Wellpath Report BA KER E KU22 -6X Version #2 HUGHES MARATHON Page 3 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KU22 -6X Field Kenai Gas Field (NAD83) Wellbore KU22 -6X Facility jPad #34 -31 WELLPATH DATA (67 stations) t = interpolated /extrapolated station • MD Inclination Azimuth TVD Vert Sect North East DLS [ft] [°] 1 [ft] [ft] [ft] [ft] [ ° /100ft] 2900.001 49.412 144.166 2241.64 1610.83 - 1321.03 921.82 0.00 3000.001 49.412 144.166 2306.70 1686.77 - 1382.60 966.28 0.00 3034.97 49.412 144.166 2329.45 1713.33 - 1404.13 981.83 0.00 3100.00t 48.112 144.166 2372.32 1762.22 - 1443.77 1010.46 2.00 3200.00t 46.112 144.166 2440.37 ` 1835.48 - 1503.17 105335 2.00 3300.00t 44.112 144.166 2510.94 1906.32 - 1560.60 1094.83 2.00 3400.001 42.112 144.166 2583.94 1974.66 - 1616.01 1134.84 2.00 3500.00t 40.112 144.166 2659.28 2040.41 - 1669.31 1173.33 2.00 3600.001 38.112 144.166 2736.87 2103.48 - 1720.45 1210.26 2.00 3700.00t 36.112 144.166 2816.61 2163.81 - 1769.36 1245.58 2.00 3800.001 34.112 144.166 2898.41 2221.33 - 1815.99 1279.25 2.00 3900.001 32.112 144.166 2982.17 2275.95 - 1860.28 1311.23 2.00 4000.001 30.112 144.166 3067.78 2327.61 - 1902.16 1341.48 2.00 4100.001 28.112 144.166 3155.14 2376.26 - 1941.60 1369.96 2.00 4200.001 26.112 144.166 _ 3244.1' .. - 2421 ;? ;: K" m 1421.48 .; X 2.00 24.112 144.166 3334.69 2464.26 -2012.95 1.64 4400.001 22.112 144.166 3426.66 2503.51 - 2044.77 1444.46 2.00 4500.001 20.112 144.166 3519.94 2539.53 - 2073.97 1465.55 2.00 4600.001 18.112 144.166 3614.43 2572.26 - 2100.51 1484.71 2.00 4700.00t 16.112 144.166 3710.00; 2601:68 , W,12437 , '1501.94 . „_ ' }2.00 4800.001 14.112 144.166 3806.53 2627.75 - 2145.50 1517.20 2.00 4900.001 12.112 144.166 3903.92 2650.43 -2163.89 1530.48 2.00 5000.001 10.112 144.166 4002.04 2669.70 - 2179.51 1541.76 2.00 5100.001 8.112 144.166 4100.77 2685.54 - 2192.35 1551.03 2.00 _ 5200.001 6.1121 144.166 4200.00 2697.92 - 2202.39 1558.28 2.00 5300.001 4.112 144.166 4299.60 2706.83 - 2209.61 1563.50 2.00 5400.001 2.112 144.166 4399.45 2712.25 - 2214.01 1566.68 2.00 5500.001 0.112 144.166 4499.42 2714.19 - 2215.58 1567.81 2.00 5505.58 0.000 144.166 4505.00 2714.20 - 2215.59 1567.81 2.00 5600.00t 0.000 144.166 4599.42 2114.20 -4215.59 1567.81 0.00 Planned Wellpath Report BA r E KU22 -6X Version #2 HUGHES MARATHON Page 4 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KU22 -6X Field Kenai Gas Field (NAD83) Wellbore KU22 -6X Facility Pad #34 -31 WELLPATH DATA (67 stations) f = interpolated /extrapolated station 41 MD Inclination Azimuth TVD Vert Sect North East DLS [ft] [°] [ [ft] [ft] [ft] [ft] [ ° /100ft] 5700.00f 0.000 144.166 4699.42 2714.20 - 2215.59 1567.81 0.00 5750.58 0.000 144.166 4750.00 2714.20 - 2215.59 1567.81 0.00 5800.00f 0.000 144.166 4799.42 2714.20 - 2215.59 1567.81 0.00 5900.001 0.000 144.166 4899.42 2714.20 - 2215.59 1567.81 0.00 ' 5} 58, y _:: �. ,- - 0,000 u ' - 144.l66 4900.00 4714.20' - 2215.59 1567.81 '� 0.00 6000.00f 0.000 144.166 4999.42 2714.20 - 2215.59 1567.81 0.00 6050.58 0.000 144.166 5050.00 2714.20 - 2215.59 1567.81 0.00 HOLE & CASING SECTIONS Ref Wellbore: KU22 -6X Ref Wellpath: KU22 -6X Version #2 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 12.25in Open Hole 0.00 2000.00 2000.00 0.00 1656.09 0.00 0.00 - 766.94 521.69 9.625in Casing Surface 0.00 2000.00 2000.00 0.00 1656.09 0.00 0.00 - 766.94 521.69 8.5in Open Hole 2000.00 6050.58 4050.58 1656.09 NA - 766.94 521.69 NA N 5.5in Casing Production 0.00 6050.58 6050.58 0.00 NA 0.00 0.00 NA NA Planned Wellpath Report BA KER E KU22 -6X Version #2 HUGHES MARATHON Page 5 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KU22 -6X Field Kenai Gas Field (NAD83) Wellbore KU22 -6X Facility Pad #34 -31 TARGETS • Name MD TVD North East Grid East Grid North Latitude Longitude Shape [ft] [ft] [ft] [ft] [sry ft] [sry ft] 1) KU22 -6X Sterling Pool6 (NAD83) 23- 4505.00 - 2215.59 1567.81 1412347.22 2365684.38 60 0 28'10.206'N 151 0 15'50.145 "W circle Jul -08 2) KU22 -6X Upper Beluga (NAD83) 23- 4750.001 - 2215.591 1567.81 1412347.221 2365684.381 60°28'10.206"N 151 0 15'50.145 "W circle Jul -08 3) KU22 -6X Upper Beluga U5 (NAD83) 23- I 4900.001 - 2215.59 1567.81 1412347.221 2365684.381 60 °28'10.206 "N1 151 °15'50.145 "W1 circle Jul -08 4) KU22 -6X TD (NAD83) 23- Jul -08 I 5050.00 - 2215.59 1567.81 1412347.22 2365684.38 60 °28'10.206'Ni 151 °15'50.145 "W circle SURVEY PROGRAM Ref Wellbore: KU22 -6X Ref Wellpath: KU22 -6X Version #2 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ft] 0.00 2000.00 NaviTrak (Magcorrl) KU22 -6X 2000.00 6050.58 NaviTrak (Magcorrl) KU22 -6X 1 IV RATHON Oil Compal BA KER ■ Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KU22 -6X HUGHES Fiel: Kenai W: KU22-6X MARATHON Facility: Pad #34.31 Fie (NAD83) Wellbo e: KU22 -6X INTEQ Plot reference wellpath is KU22 -6X Version #2 True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 80 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #34 -31): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 12- Aug -08 s „.,�„ Easting (ft) -100 -50 0 50 100 150 200 250 300 350 400 450 500 550 600 1 1 1 1 I a (� 1 1 1 1 1 1 1 1 1 13 4 1200 100 1100 — 100 1000 900 50 — 7 �D 50 800 7 6 °O wit -32 7 500 7 6 00 slot #KU22 -6X slot #KDU -6 ''oo 0 — ' •,° — 0 , 2 O ° o 500 ' °o -50 ■ 600 ) e °O — - s 0 0 700 °O slot #KU14 - 100 — 800 slot #KDU -5 ex0 -150 — 900 , ^� o � ^ ^ ^ ^ e ,Ass ,, p MI5 ^ ry^ ry , -200 — ti ■ - 200 1000 2 0 rn M- L -250 — — -25 1= um Z 1100 -300 — — -300 -350 — 1200 — 0 0 �50 ^^ -400 ■ ^ryoo 1300 -45 — ^ — -450 ^ -500 — ^c§P ■ -500 ^o o ^ 1400 1200 ^ 0 C� -550 — — -550 1300 p ^ 1400 -600 — e — -600 1500 1 8 '' 1•1f•4 .6, Ge3 ^ po ti kv - 650a/ 1 1 7 '# I I I I I I I I >s + I I I ?rs ∎ -100 -50 0 ” 50 100 150 200 250 300 350 400 450 500 550 600 $°" "M„.1C0 ft Easting (ft) Aft ATHON Oil Compa BA ER L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KU22 -6X HUGHES Fl: Kenai MARATHON F c Pad #34- 31 Field (NAD83) Wellborre: KU22 -6X INTEQ Plot reference wellpath is KU22 -6X Version #2 True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 80 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #34 -31): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 12- Aug -08 Scale h.,�rt Easting (ft) 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 I I I I I I 1 I I I I I 1 I I -450 — — -450 :§ 500 1400 550 — 4" — -550 p o -600 — , — -600 1500 ti -650 — — -650 if -700 — X 00 - -700 1600 ti -750 — -750 2200 9 5/8" Casing Surface ti k412j 800 — 2300 • -800 1700 e Z C 2400 ti 0 P. cm c t C -850 — 2500 — - 850 03 0 Z 2600 — 2700 1800 2800 950 — — `0 2900 3000 1000 — 1900 3100 -1050 — 3200 — - 3300 1100 — 2000 3400 — -1100 3500 -1 — ■ -1150 3600 2100 _ — 3700 I- G 381 s' I I I I I I I I I I �w 1 1 1 1 b", -/- 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 5d1a 1ncM1 iCOS Easting (ft) • ri.� M M RATHON Oil Company BAKER Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KU22-6X NY6NES Well: KU22-6X MARATHON Facility: Pad #34- 31 Field (NAD83) Wellborre: KU22 -6X INTEQ Plot reference wellpath is KU22 -6X Version #2 True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 80 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #34 -31): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 12- Aug -08 Scale 1 Inch.1fpR Easting (ft) 550 600 850 700 750 800 850 900 950 1000 1050 1100 1150 1200 1250 -9001 1800 I 1 1 1 1 1 1 1 I 1 I 1 1— -900 -950 — ne p 'C ng, 1,p. KU21_6x -1000- 1900 1P7- -moo 2000 1100 -1100 -1150— - -1150 3600 2100 3700 ■ -1200 3800 -1250 — 3900 — -1250 +. Z 4 000 0 m 2200 a. t -1300 — 4100 — -1300 cc 0 Z 4200 -` G 'i s 2300 -1400 — — -1400 -1450 — — -1450 2400 -1500 — — -1500 " 2500 — - -1800 — — -1600 2600 1650 — - G a. 2 b , 1 I I I I I I I I I I I I f I I 550 800 850 700 750 800 850 900 950 1000 1050 1100 1150 1200 1250 Sala 1 inch.1W/t Easting (ft) • • MARATHON Oil Company KER RI Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KU22 -6X HUGHES Field: Kenai Gas Field (NAD83) Well: KU22 -6X INTEQ MARATHON Facility: Pad #34 -31 Wellbore: KU22-6X Plot reference wellpath is KU22 -6X Version #2 True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 80 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #34 -31): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 12- Aug -08 Traveling Cylinder: Map North All depths are Measured Depths on Reference Wellpath - r e a r . - 1 1 0 0 00 900 330' PO' °0f' 600 ear 500 300' 1000 (10 800 /Oft 2011 900 - 7 0 270 . Pat 800 1011 240' 120' 500 0010 700 80ft 210' 1S0 600 180' 500 Scale 1 inch = 30 ft Clearance Summary Report Mai KU22 -6X Version #2- Closest Approach BAKER MARATHON Page 1 of 5 HUGHES INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KU22 -6X Field Kenai Gas Field (NAD83) Wellbore KU22 -6X Facility Pad #34 -31 REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Jonethoh Scale 0.99996 Report Generated 12- Aug -08 at 14:01:07 Convergence at slot 1.11° West Database /Source file WA_Anchorage/KU22- 6X.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location 821.20 - 1835.40 1410822.58 2367929.76 60 °28'32.026 "N 151 0 16'21.420 "W Facility Reference Pt 1412641.83 2367073.56 60 °28'23.940 "N 151°15'44.801"W Field Reference Pt 1410937.15 2361824.52 60°27'31.931"N 151°16'16.783"W 1 WELLPATH DATUM Calculation method Minimum Curvature Planning (RKB) to Facility Vertical Datum 80.00ft Horizontal Reference Pt Slot Planning (RKB) to Mean Sea Level 80.00ft Vertical Reference Pt Planning (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Planning (RKB) Field Vertical Reference Mean Sea Level POSITIONAL UNCERTAINTY CALCULATION SETTINGS Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.00ft Surface Position Uncertainty included Declination 18.77° East of TN Dip Angle 73.39° Magnetic Field Strength 55420 nT • l‘i'i Clearance Summary Report 's %� BAKER KU22 -6X Version #2- Closest Approach HUGHES MARATHON Pa 2 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KU22 -6X Field Kenai Gas Field (NAD83) Wellbore KU22 -6X Facility Pad #34 -31 ANTI- COLLISION RULE Rule Name E -type Closest Approach w/Hole &Csg Limit:0 StdDev:3.00 w /Surface Uncert Rule Based On Ellipsoid Separation Plane of Rule Closest Approach Threshold Value 0.00ft Subtract Casing & Hole Size yes Apply Cone of Safety no HOLE & CASING SECTIONS Ref Wellbore: KU22 -6X Ref Wellpath: KU22 -6X Version #2 ' String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W WI [al [f] [a] IN [al [ft] [a] [a] 12.25in Open Hole 0.00 2000.00 2000.00 0.00 1656.09 0.00 0.00 - 766.94 521.69 9.625in Casing Surface 0.00 2000.00 2000.00 0.00 1656.09 0.00 0.00 - 766.94 521.69 8.5in Open Hole 2000.00 6050.58 4050.58 1656.09 NA - 766.94 521.69 NA NA 5.5in Casing Production 0.00 6050.58 6050.58 0.00 NA 0.00 0.00 NA NA SURVEY PROGRAM Ref Wellbore: KU22 -6X Ref Wellpath: KU22 -6X Version #2 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ft] 0.00 2000.00NaviTrak (Magcorrl) KU22 -6X 2000.00 6050.58NaviTrak (Magcorrl) KU22 -6X Clearance Summary Report BA ���� KU22 -6X Version #2- Closest Approach HUGHES ES MARATHON Pa 3 of 5 INTEQ 'REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KU22 -6X Field Kenai Gas Field (NAD83) Wellbore KU22 -6X Facility Pad #34 -31 CALCULATION RANGE & CUTOFF From: 0.00ft MD I To: 6050.58ft MD I C - C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (70 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min C -C Diverging Ref MD of Min C -C Min C -C ACR Facility Slot Well Wellbore Wellpath MD Clear Dist from MD Min C -C Ell Sep Ell Sep Status [ft] [ft] [ft] Ell Sep [ft] Dvrg from [ft] [ft] Pad #34 -31 slot #KDU -5 KDU5 KDU5 GMS <0- 10502> 934.75 53.08 6050.58 961.63 30.26 6050.58 PASS Pad #34 -31 slot #KU14 -32 KU14 -32 KU14 -32 PGMS <0 -5700> 682.95 74.62 682.95 700.00 55.81 700.00 PASS Pad #34 -31 slot #KDU -6 KDU6 KDU6 GMS <0- 11095> 446.66 92.24 446.66 464.80 74.01 464.80 PASS Pad #34 -31 slot #KU21 -6 KU21 -6 KU21 -6 MSS <0- 746>PGMS<778 - 3452' >MSS <3557- 5682'> 1474.63 215.82 5500.00 1474.63 187.27 5700.00 PASS Pad #34 -31 of = ' X1 47 4.63 ;215.82 5505.58 1474.63 7 t +t Pad #34-31 slot #KU11 -6 KU11 -6 KU11 -6 MSS <0-4459> 1368.01 364.83 5000.00 1420.69 328.49 5000.00 PASS Pad #34 -31 'slot #KU34 -31 KU34 -31 KU34 -31 NO TOOL <0 -5809> 762.95 399.08 762.95 832.97 357.03 6050.58 PASS Pad #34 -31 slot #KU -WD -1 WD -1 WD -1 GMS <0 -3300> 254.90 508.63 254.90 400.00 492.48 400.00 PASS Pad 14 -6 Slot #KBU 22 -6 KBU22 -6 KBU22 -6 MWD <0 -8855> 5800.00 1280.87 6050.58 6050.58 1065.26 6050.58, PASS d 14:6 : : e s : r: . % . <04500> 5793.20 1597.02 579.0 7K97 s ASS' Pad 14 -6 slot #KBU 23X -6 KBU23X -6 KBU23X -6 GMS <0 -6950> 6050.58 1778.47' 6050.58 6050.58 1627. 6050.58 PASS Pad 41 -7 slot #KU 43 -6 KU43 -6 KU43 -6Rd MWD <4250 -5740> 5777.76 2497.85 5782.24 5782.24 2354.78 5782.24 PASS Pad 41 -7 Slot #KBU41 -6 KBU41 -6 KBU41 -6 MWD <0 -9733> 5387.50 2884.48 5387.50 5441.42 2630.87 5441.42 PASS Pad 41 -7 slot #KBU33 -6 KBU33 -6 KBU33 -6 GMS <0- 7902 >, MWD <7902 -8110> 6050.58 2789.99 6050.58 6050.58 2661.62 6050.58 PASS 3 ;�: ,.: t ` � �a ° i�`m e. 6054 $ 6:5l t `t . t i „etas . `'AS .• Pad 14 -6 Slot #KBU 24 -6 KBU24 -6Rd KBU24 -6Rd MWD <3964 -7830> 6050.58 2870.44 6050.58 6050.58 2727.88 6050.58 PASS Pad 41 -7 slot #KU 43 -6 KU43 -6 KU43 -6 GMS <0 - 4129 >, MSS<4174 -5701> 5787.64 2976.11 5787.64 5789.61 2819.13 5789.61 PASS Pad 41 -7 Slot #KBU42 -6 KBU42 -6 KBU42 -6 MWD <0 -8624> 6050.58 3231.18 6050.58 6050.58 3032.05 6050.58 PASS Pad 41 -7 slot #KTU43 -6X KTU43 -6X KTU43 -6XRd MWD <7670 -9464> 6050.58 3228.79 6050.58 6050.58 3065.20 6050.58 PASS a a v 3065 6050.58 s . a s ; Pad 41 -7 slot #KTU43 -6X KTU43 -6X KTU43 -6XRD2 MWD <7700 -9470> 6050.58 3228.79 6050.58 6050.58 3065.24 6050.58 PASS Pad 14 -6 Slot #KBU 24 -6 KBU24 -6 KBU24 -6 MWD <0 -7500> 5820.63 3402.64 5820.63 5825.86 3259.94 5825.86 PASS Pad 14 -6 slot #KDU 1 KDU -1 KDU -1 MSS <0 -9895> 6050.58 3487.98 6050.58 6050.58 3305.19 6050.58 PASS Pad 14 -6 slot #KU 14X -6 (Originally KDU 8) KU14X -6 KU14X -6 GMS <0- 10000> MSS <10194 - 10225> 6050.58 3479.71 6050.58 6050.58 3324.40 6050.58 PASS slot #KU 14-6R4 a, _ x 6 ._. 6Sti: • - 1 >, ' <4800 - 5403'> 6050.58 362 L99 6050.58 6050,;58 3336 ?XI-6050.58 PASS M Clearance Summary Report BAKER r �` • KU22 -6X Version #2- Closest Approach IES Pa 4 of 5 MARATHON INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 - 6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KU22 - 6X Field Kenai Gas Field (NAD83) Wellbore KU22 -6X Facility Pad #34 -31 CALCULATION RANGE & CUTOFF From: O.00ft MD To: 6050.58ft MD I C -C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (70 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min C -C Diverging Ref MD of Min C -C Min C -C ACR Facility Slot Well Wellbore Wellpath MD Clear Dist from MD Min C -C Ell Sep Ell Sep Status [ft] [ft] [ft] Ell Sep [ft] Dvrg from [ft] [ft] Pad 14 -6 slot #KU 14 -6Rd KU14 -6 KU14 -6 TotcoIncl. Surveys <200-15047> 6050.58 3632.11 6050.58 6050.58 3342.21 6050.58 PASS Pad 14 -6 Slot #KU 21-7X KU21 -7X KU21 -7X MWD <193 -5032> 4932.48 3518.08 4932.48 4932.48 3376.60 4932.48 PASS Pad 41 -7 slot #KU 43 -6A KU 43 -6A KU43 -6A MSS <0 -5300> 5576.39 3588.70 5576.39 5572.61 3396.07 5572.61 PASS Pad 14 -6 slot #KBU 14 -6Y KBU14 -6Y KBU14 -6Y NaviTrak MWD<148 - 7600'> 5043.91 3581.16 5043.91 5049.18 3428.22 5049.18 PASS Pad 14 slot #KU 31 - 7X (Originally K U31 - 7) KU 314 KU 314 MWD <0 - 5790> 4657.46 3617.57 4657.46 4653.96 3481.60 4653.96 PASS Pad 14 -6 slot #KU 21 -7 KU21 -7 KU21 -7 MSS <O -4453> 5000.00 3955.97 5000.00 5031.67 3801.51 5031.67 PASS Pad 14 -6 slot #KBU 31 -7 KBU31 -7 KBU31 -7 GMS <0 -7375> 4450.00 4009.04 4450.00 4450.00 3871.46 4450.00 PASS Pad 14 -6 slot #KBU 31 -7 KBU31 -7 KBU31 -7Rd MWD <5814 -7575> 4450.00 4009.04 4450.00 4450.00 3871.46 4450.00 PASS Pad 14 -6 Slot #KBU 23 -7 KBU 23 -7 KBU 23 -7 MWD <0 -9320> 4400.00 4048.16 4400.00 4406.62 3907.13 4406.62 PASS 4.1 ? ,.' A : ...,.y,-..,, @, V.7 3, ,,, ' ?. ., <165- 1509'x161 S343'> <5463- `7139'> 6050:58 x'145, 6050.58 - ,s :58 4009.14 6050 ?•'; :1:,- Pad 14 -6 Slot #KBU 11 -7 KBU11 -7 KBU11 -7 MWD <0 -7900> 4150.00 4207.20 4150.00 4163.07 4070.44 4163.07 PASS Pad 41 -7 slot #KTU13-5 KU13 -5 KU13 -5 GMS <0-8120> 6050.58 4415.05 6050.58 6050.58 4253.47 6050.58 PASS Pad 41 -7 slot #KBU12 -5 KBU12 -5 KBU12 -5 NaviTrak <212- 1890'><2014 - 64965<6607 - 8920'> 5054.37 4482.61 5054.37 5155.54 4303.98 5155.54 PASS Pad 41 -7 slot #24 -6 KTU24 -6H KTU24 -6H MWD <0- 10960> 6050.58 4430.09 6050.58 6050.58 4332.89 6050.58 PASS . ',., , °:. , M • U , < 44-6 s <P-7449>,-- .£ 414 4 a .. " 4 ' 6050.58 . } 58 434921. t: , , Pad 14 -6 slot #KU 43 -12 KU43 -12 KU43 -12 MSS <0 -6530> 3975.00 4674.28 3975.00 3975.00 4538.81 3975.00 PASS Pad 41 -7 slot #KBU41 -7X KBU41 -7X KBU4I -7X MWD <0 -5300> 6050.58 4765.85 6050.58 6050.58 4636.30 6050.58 PASS Pad 41 -7 slot #24 -6 KTU24 -6H KTU24 -6H (Pilot) UNKN <8820 -9010> 6050.58 4798.54 6050.58 6050.58 4671.01 6050.58 PASS Pad 41 -7 slot #24 -6 KTU24 -6H KTU24 -6H RD MWD <8844 -8940> 6050.58 4798.54 6050.58 6050.58 4671.01 6050.58 PASS # a , , :.. . ' '.t ._ +,. i 9, . , ° _ ', ' `` $ - , r� 5500.00 4937 5500.00 55 07 4785:98 5900:58 PASS Pad 41 -7 slot #KTU32 -7H KTU32 -7H KTU32 -7H MWD <0- 11857> 6050.58 4939.02 6050.58 6050.58 4811.96 6050.58 PASS Pad 41 -7 slot #KBU 41 -7 KBU41 -7 KBU41 -7 GMS <0 -7290> 6050.58 5008.95 6050.58 6050.58 4879.71 6050.58 PASS Pad 41 -7 slot #32 -7 KTU32 -7 KTU32 -7 MWD <0 -8864> 4771.78 5215.86 4775.00 4775.00 5092.75 4775.00 PASS Pad 41 -7 Slot #KBU43 -7X KBU43 -7X KBU43 -7X MWD <0 -8610> 4484.79 5305.60 4484.79 4484.79 5185.22 4484.79 PASS , 7 4 KBU 1.1: T :' <0 -7659> 4800.00 5345.75 - 4800.00 48()4.07 5220.69 4804.07 PASS Clearance Summary Report BAKER 1E1111 KU22 -6X Version #2- Closest Approach HUGHES MARATHON pa 5 of 5 _.__ w_.�_ . ., INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KU22 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KU22 -6X Field Kenai Gas Field (NAD83) Wellbore KU22 -6X Facility Pad #34 -31 CALCULATION RANGE & CUTOFF From: 0.00ft MD I To: 6050.58ft MD C - C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (70 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min C -C Diverging Ref MD of Min C -C Min C -C ACR Facility Slot Well Wellbore Wellpath MD Clear Dist from MD Min C -C Ell Sep Ell Sep Status [ft] [ft] [ft] Ell Sep [ft] Dvrg from [ft] [ft] Pad 41 -7 slot #KU 24 -5 KU24 -5 KU24 -5Rd MWD <3470 -4816> 5412.63 5419.47 5412.63 5412.63 5252.46 5412.63 PASS Pad 41 -7 slot #KU 24 -5 KU24 -5 KU24 -5 GMS <0 -5900> 4900.00 5473.57 4900.00 4948.20 5321.08 4948.20 PASS Pad 41 -7 slot #KBU42 -7 KBU42 -7 KBU42 -7 MWD <0 -7570> 4618.08 5445.88 4618.08 4625.00 5324.70 4625.00 PASS Pad 41 -7 slot #KBU42 -7 KBU42 -7 KBU42 -7Rd NaviTrak w/ AP <4077 - 7926> 4618.08 5445.88 4618.08 4625.00 5324.87 4625.00 PASS Pad 41 - 7 slot #KDU 4 KDU4Rd KDU4Rd MSS<4320 10810> 4800.00 5559.90 4800.00 4931.47 5418.06 4931.47 PASS Pad 41 -7 slot #KDU 4 KDU4 KDU4 GMS <0 -5549> 4800.00 5559.90 4800.00 4931.47 5418.06 4931.47 PASS Pad 41 -7 slot# KBU11 -8Y KBU 11 -8Y KBU 11 -8Y MWD <0 -8220> 4375.91 5596.62 4375.91 4375.91 5478.76 4375.91 PASS Pad 41 -7 slot #KDU 2 KDU #2 KDU #2 MSS <0- 10522> 4509.35 5852.97 4509.35 4512.50 5731.83 4512.50 PASS Pad 41 -7 slot #KU 11 -8 KU11 -8 KU11 -8 GMS <0 -5350> 4445.00 5904.07 4445.00 4450.98 5784.42 4450.98 PASS f,141 ? "� • U,43 -, :, ,,, ,' 3 -7 KU 43-7 MSS <0-5707> 4400 4Q' 6031.50 4400:00 4400.00. 5912.29 • • *1 `.;,,;: - .. im t: Pad #41-18 slot #KBU33-7 KBU33 -7 KBU33 -7 MSS <0 -7910> 6050.58 7204.48 6050.58 6050.58 7005.45 6050.58 PASS Pad #41 -18 slot #KBUI3-8 KBU13 -8 KBU13 -8 MSS <0 -8770> 6050.58 8214.83 6050.58 6050.58 8005.43 6050.58 PASS Pad #41 -18 Slot #KBU24 -7X KBU24 -7X KBU24 -7X NaviTrak <173 - 83035 6050.58 8624.75 6050.58 6050.58 8436.23 6050.58 PASS Pad #41 -18 slot #KU24 -7 KU24 -7 KU24 -7 GMS <0- 58205 5777.76 8738.07 5777.76 5782.77 8580.91 5782.77 PASS po •r . 47. 4',1:'!::-;:-.. , ;',., ,, 1 1 7: 7 `.4,..i ,, ,,, t ' A9, `_ 5374.48 u4., 8*.89 5` 4:. ", Pad #41 -18 slot #KBU14 -8 KBU14 -8 KBU14 -8 NaviTrak MWD <173 - 8072'> 6050.58 9291.81 6050.58 6050.58 9147.47 6050.58 PASS Pad #41 -18 Slot #KBU41 -18X KBU41 -18X KBU41 -18X NaviTrak MWD <139- 87405 6050.58 9448.94 6050.58 6050.58 9313.13 6050.58 PASS Pad #41 -18 slot #KU11 -17 KU11 -17 KU11 -17 GMS <0 -5400> 5345.17 10325.12 5345.17 5345.17 10167.81 5345.17 PASS Pad #41 -18 slot #KU41 -18 KU41 -18 KU41-18 MSS <0- 14721> 5505.58 10351.84 6050.58 6050.58 10204.82 6050.58 PASS t0 0,i=18,x. sot#KUi2-17 ‘,''',, v,4 a} KU112 -17 , _. KU12 = 17 " NaviTrak D246- 6585'› -: • >- , 4686.96 .r ., 109$0.24 4086,96 4686.96 ;: 14851.05 4686.96 PASS • • IFE Marathon Oil Company _ Well Name: KU 22 -6X Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN HSE 0 Prepared For: MARATHON OIL COMPANY Well KU 22 -6X Kenai Peninsula, Alaska -PA ti r !y Prepared by: Jim Dwyer Reviewed by: Hal Martens Presented to: Will Tank August 14, 2008 • • Ago. IFE Marathon Oil Company Well Name: KU 22 -6X Location: Kenai, Alaska. Will: Enclosed is the recommended drilling fluid program for the KU 22 -6X well to be drilled this year. The following is a brief synopsis of the program. Overview: KU 22 -6X is a Sterling producer drilling thru the Sterling sands into the upper Beluga. A Gel/Gelex spud mud is recommended for the surface interval. Flo -Pro fluid will be used for the production interval. Surface Interval: A standard fresh water Gel/Gelex spud mud will be used. Initial funnel viscosity should be in the 50 — 75 sec /qt range. Lower funnel viscosity to 45 — 60 sec /qt after gravel has been drilled. Lower fluid loss to < 10 cc's API prior to running surface casing. Production Interval: This interval will be drilled with a Flo -Pro fluid. After drilling out the surface cement, the well will be displaced to a standard Flo -Pro KC1 fluid. Safecarb bridging material will be maintained according to the mud program to minimize losses to the formation. Potential fluid losses to the Sterling A8 Sands (3610' TVD) Sterling Pool 6 (4505' TVD) and Upper Beluga (4750' TVD) may be controlled by additions of G -Seal and/or sized calcium carbonate. G -Seal can also reduce torque in the build area of the hole. Completion: This program assumes the well will be completed with an inhibited 6% KC1 brine. 5.5" casing cement job will be displaced with inhibited KCL brine and turned over to production. Jim Dwyer Senior Project Engineer M -I Drilling Fluids NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. • • A' Marathon Oil Company Well Name: KU 22 -6X Location: Kenai, Alaska. EXECUTIVE SUMMARY �� Fa Our goal is zero spills and zero incidents and 100/0 compliance while providing fluids and solids control services to Marathon Oil F {pti Company. �'RONMEN M, The solids van will continue to assist in removal of LGS for minimizing mud weight and dumping and dilution of fluids. Disposal costs at G & I facility will be reduced with the use of solids van. ■ We expect to drill this well for a product cost of less than $32.75 per foot without major subsurface fluid losses in the Sterling. We estimate the use of less than 3814 barrels to drill this well, not 'FE withstanding any losses to the formation. • • Iftt IFE Marathon Oil Company Well Name: KU 22 -6X Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth Benchmark 1 Benchmark 2 Benchmark 3 Interval (ft) Fluid cost per foot Volume Usage QHSE 0 — 2000' > $7.58 ft < 2149 bbls No incidents, accidents or first aid cases for M -I SWACO 2000 — 6051' > $39.16 ft < 1665 bbls No incidents, accidents or first aid cases for M -I SWACO Total Project Avg. Max. Targets for < $32.75 < 3814 bbls No Spills from Centrifuge Van Drilling Interval Operation • • Marathon Oil Company 'FE Well Name: KU 22 -6X Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost w/ (in) (in) (ft) (ft) Solids Control (ppg) engineering 9.625" 12.25 " 2000' 1656' Gel/Gelex Spud 8.6 — 9.2 5 $20,156 Mud Screens 150/180 . mesh Desilter Centrifuge Van 5.5" 8.5" 6051' 5050' Flo -Pro 9.2 — 9.4 10 $170,802 w /SafeCarb Screens 180 — 210 mesh Desilter Centrifuge Van Completion 6051' 5050' 6% KC1 8.55 3 $7,260 ➢ Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). ➢ Condition the mud prior to running casing for all intervals. ➢ Cost does include engineering but no costs for downhole mud losses. ➢ Cost does include 3% LoTorq for production interval. Formation Estimated Tops (TVD) Sterling A8 3610' Sterling Pool 6 4505' Top Upper Beluga 4750' Upper Beluga U5 5901' • . IFE Marathon Oil Company Well Name: KU 22 -6X Location: Kenai, Alaska. Est. Product Usage Summary PRODUCT Surface Production Completion Total 12.25" 8.5" 3.5" Usage M -I WATE 250 250 M -I Gel 968 968 Gelex 27 27 Soda Ash 21 8 29 Caustic Soda 21 17 38 Conqor 404 4 4 Sodium 20 30 4 54 Metabisulfite Bicarb 21 8 26 Conqor 303 4 4 F1oVis 133 133 Desco CF 21 21 Polypac UL 21 67 88 Myacide 18 18 KC1 699 168 867 Safecarb 20, 40, 250 670 670 LoTorq 51 42 Defoam X 18 18 Klagard 15 15 Engineering 5 10 3 18 • • IFE Marathon Oil Company Well Name: KU 22 -6X Location: Kenai, Alaska. Plans & Procedures COMMUNICATION — The Field Mud Engineer will communicate daily with the Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole problems, possible changes to the mud program, and proposals to use products not included in the mud program if they would aid in overall drilling performance. WHOLE MUD LOSSES TO THE STERLING A8 SANDS — Adequate concentration and mixture of SafeCarb 20, 40, and 250 should be used along with MIX II and GSeal charts for maintaining proper bridging material concentration in the mud system while drilling the production interval. FLUID LOSS CONTROL — In the production interval the API fluid will be maintained at less than 6 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum. PolyPac UL will be used for fluid loss control due to bacterial degradation of starch in DualFlo when adding LCM (MIX II in particular) to mud. LSRV — When drilling with a FloPro fluid, the low shear rate rheology as measured with Brookfield rheometer should be maintained between 30- 40,000 cps. In addition to adequate additions of FloVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. DRILL SOLIDS — MBT — The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. MIXING CONDITIONS — Whenever possible all treatments to the mud system should be made as pre -mix additions. Polymers and KC1 should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. CORROSION — Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +1- 2000 PPM. CORROSION — Sodium Metabisulfite additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm MYACIDE ADDITIONS — MYACIDE additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. SOLIDS VAN USAGE — The Solids Van should be used whenever drill solids become high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining factor for when to use the Solids Van. WEIGHTING UP — All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. Monitor K+ concentration daily with the use of strips to verify proper inhibition from K+ ion. • • Alfts Marathon Oil Company Well Name: KU 22 -6X Location: Kenai, Alaska. Interval Summary — 12.25" hole 0 -2000' Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel / Gelex / Soda Ash / Caustic Soda / MI Bar / PolyPac Supreme UL / Desco CF Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 150 — 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec./0) (lb. /100ft (mU3Omin) ( %) 0 — 2000' 8.6 — 9.2 60 - 100 25 - 35 NC - 12 +/- 9.5 < 7% > Treat drill water with Soda Ash to reduce hardness. ➢ Build spud mud with 20 — 25 PPB M -I Gel to +/- 100 sec.qt funnel viscosity. > Lower funnel viscosity to +/- 75 after gravel zone has been drilled. ➢ Add Gelex as needed to maintain sufficient viscosity for hole cleaning. > Increase funnel viscosity if fill on connections begins to occur. ➢ Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. > Add 2 — 5 PPB of MIX II to mud system if seepage losses becomes a problem.. > Condition mud prior to cementing casing to reduce yield point and gel strengths. ➢ Estimated volume usage for interval — 2149 barrels. ➢ Estimated haul off volume — 2332 barrels. • • • IC I I Marathon Oil Company Well Name: KU 22 -6X I . Location: Kenai, Alaska. Virtual Hydraulics 12.25" Snapshot Mi ,_, 01995 -2006 M.IL.L.C. 700 GPM MD:2000 ft Operalorina rathon 124. ° °, �.�'c. TVD:1656 ft WeIName: KU 22 -6X VIRTIYLL NYDRAULICS* Snapshot* BBSae:12.25 D ate 9H 3/2008 M Loeatlen:K•nalPeninsula CountryAlaska Depth Geometry Angle Density Vs Hole Clean Pressure Distribution (ft) MDITVD Csg ODD ( °) 011%16l) (ftlmin) Index ( (5) )n) 0 45 90 8.8 9.2 9.6 0 200 400 T W 0 F P Bit =16.8 Ann s2.8 DSa 80.3 • „,_____n LN ,6.000 I L 100 14.000 200 1 • 4 0 00 ' Drilling Fluid Water -Based Mud 000 Mud Weight 8.8 Iblgal Test Temp 120 °F ' System Data 800 Flow Rate 700 ga5min Penetration Rate 150 ftlhr ,000 _ Rotary Speed 100 rpm Weight on Bit 15 1000 lb Bit Nozzles 1.5 in 1200 r Pressure Losses M odified Power Law 1000 , DriString 860 psi MWD 301 psi Motor 215 psi 'sso ,.. B6 178 psi Bit On/Off 100 psi Annulus 30 psi Surface Equip 53 psi 1800 1 TotelO stem psi 17 1 Z i Total System 1761 psi \ \` 1 ESD EC +Cut 2000 12.250 C598h0e 8.88 9.06 9.33 1658 TD 898 9.23 991 - 690 F m - E > - M] I WM.wmm� 3.1 Fann 35 - Em Rad15% 1H - Frror1 . 0 , 80000,% ' ffii F. - 1e12249.M0e ■ • • Ark Marathon Oil Company ` 'FE Well Name: KU 22 -6X Location: Kenai, Alaska. Virtual Hydraulics 12.25" Hole Cleaning 114 AC W C , 01995.2006 M- IL.L.C. 700 GPM MD:2000 ft OperatorMarathon � L/ �1p "Au k °of L.L.C. TVD:1666 It Web Name: KU 224X IARTUAL HYDRAULICS* VAN* Bit Si e:1226 kt loeation:KenaiPeninsula D ate:Bn ffi008 Country*laska Hole Cleaning Marathon KU 22 -6X 1.00 I _ — ROP 50 ft/hr — ROP 100 ft /hr — ROP 150 ft /hr Poor Hole Clea — ROP 200 ft /hr 0.75 X a) Fair Hole Cleaning co 0.50 — � I Good Hole Cleaning 0 0.25 Very Good Hole Cleaning 0 400 500 600 700 800 Flow Rate (gallmin) • • A /ft. Marathon Oil Company Well Name: KU 22 -6X —� Location: Kenai, Alaska. Interval Summary — 8.5" hole 2000 6051' Drilling Fluid System Flo -Pro NT Key Products Flo -Vis / PolyPac UL / KC1 / SafeCarb / Asphasol Supreme / LoTorq / KlaGard / Conqor 404 / Sodium Metabisulfite Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens – 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, tight hole conditions • Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) (cps) (ml/30min) ( %) 2000 -6051' 9.2 -9.4 10 -14 30- 40,000 <6 +/ -9.5 +/ -6.0% > Use one rig pit to drill out surface casing. In other rig pits, build new Flo -Pro fluid using the enclosed formula. > After drilling out surface casing, displace hole to Flo -Pro fluid prior to running leak off test. > Start slowing adding LoTorq after FloPro is properly sheared and increase concentration and maintain at minimum of 3% (14 ppb) during the interval. > Have LCM pill ready prior to drilling into Sterling A8 formation. Reduce pump rate if losses excessive. > Maintain DO reading of less than 3 ppm with additions of Sodium Metabisulfite. > Maintain Conqor 404 concentration of 2000+ ppm. > If running coals become a problem, increase Asphasol Supreme additions. > Estimated volume usage for interval – 1665 barrels. > Estimated haul off volume – 1706 barrels. > Condition mud prior to running 5.5" casing. • • AA Marathon Oil Company IFE Well Name: KU 22 -6X Location: Kenai, Alaska. Virtual Hydraulics 8.5" SnapShot Bvn ©1995 -2006 M- IL.L.C. 500 GPM MD:6051 ft OperatorMarethon Mark of LL.D. TVD:6060 ft W•1N•m.: KU 22 -6X mama HYDRAULICS* SnapShot Bk8a.:8A in Lo.atien:K•nalP•ninsula Dat.SH 012008 CountryAlesk• Depth Geometry Angle Density V. Hole Clean Pressure Distribution (ft) MD/TVD Csg ODAD ( °) (lb /gal) (ft/min) Index (%) 5) 44) 0 45 90 8.8 9.6 10.4 11.2 0 2000 4000 W 0 F • Bit 021.8 Ann •34.7 D8a41.5 500 ' 41, 1000 1500 • 1 Drilling Fluid FLO PR O NT IN Mud Wight 9.2 6 /gal 2000 2000 - 8.626 Test Temp 120 °F 858 8.830 System Data Flow Rate 600 gaVmm 2500 Penetration Rate 80 ft/hr 3000 Rotary Speed 80 rpm W•ightonBit 10 10006 BR Nozzles 18- 18- 18 -14-I 3500 ' . Fr mw 0 - 0 - - - Pressure Losses 4000 Modified Pow., Law Dr5String 609 psi D 240 psi 4500 Motor 172 psi B8 267 psi Bit On/Off 100 psi 5000 Annulus 460 psi Surface Equip 20 psi U -Tub• Effect 26 psi 5500 Total8y.t.m 1784 psi ESD ECD •Cut woo 1 Csg Shoe 9.30 9.71 9.80 6051 8.500 TD 9.31 10.96 11.05 5050 - ESD CC Va011. V•nlon 3.1 335 • F70 n ECD I R.d Y 8500 FP,r,a, Ems e.... File -10.122-60.16013 F70FLO . . IFE Marathon Oil Company Well Name: KU 22 -6X Location: Kenai, Alaska. Virtual Hydraulics 8.5" Hole Cleaning Mi Su/ 01995 -2006 M -I L.L.C. 600 GPM MD :6061 ft Op.rator:Marathon ° -'� +nao- ar a - L.i.c TVD:5266 ft W•N•m.: KU 22 -6X VIRTUAL HYDRAULICS* YRDNa B i t sa.:6.6 in Looation:K.naiPeninsula D at.eH 1n008 Countryflla:ka Hole Cleaning Marathon KU 22 -6X 1.00 1 1 I 1 1 - - ROP 25 ft /hr — ROP 50 ft /hr — ROP 75 ft /hr ROP 100ft /hr Poor Hole Cleaning, — — ROP 125 ft /hr - - -- 0.75_ — ROP 150 ft /hr _ X m C Fair Hole Cleaning CS) C C —".1111111111111111.1.1111.1 al 0.50 d 0 a2 O Good Hole Cleanin 2 0.25 -- Wry Good Hole Cleaning c 340 360 380 400 420 440 460 480 500 520 540 560 580 600 Flow Rate (gal /min) • • I 1 IFE Marathon Oil Company _ Well Name: KU 22 -6X Location: Kenai, Alaska. Optibridge blend for Sterling Sands I Operator Marathon Max Permeability : 1600 mD•ray Mi81Ad1 0 PTIBRIDGE Well Name: KU 22 -6X Location: Kenai, Alaska ©1999- 2007M1 LLC. - AIRIyib Reserwl Comments: Fixed Blend Optimum Bridging Agent Blend for Fixed Input 1.0 1310 - D50 - D90 Tar11e rrA D10 Target /Blond: 1.5 / 2.2 microns 0.9- D60 Tarpa! /Blond: 16.7 / 49.3 microns D90 Target /Blond: 125.6 / 296.1 microns 0.8 IAN _ Fixed Blend for 0 to 100 % CPS Range fl. Crand -Cor B ridoin0 Aaentllbrbb0 Vol CC C= Safe -Garb 20 16.0 37.60 O 0.7 Do Safe -C arb40(M) 16.0 37 .60 E= Safe -Garb 260 (C) 10.0 26.00 ti A 6 0.6- 0 N N 6 - 5 0.5- a 1 0.4 c zs.ox / 37A% 0.3- / 0.2 D 37 .6% 0.1 Simulation Accuracy Calcium C arbcnate added: 40 1b/bbl s 1' o - Avg Error o- 100 % CPS Range: 4.13 % 1x10 1x10 1x10 1x10 , 1x10 2 1x10 a 1x10 4 Pellicle Size (microns) Max Error 0 - 100 %CPS Range: 23.49 x Note: The blend is slightly higher than the target line as particle size distribution will be broken down while drilling by crushing action and should move to the left and approach the target line. • 0 IFE Well Marathon Oil Company -----z--------- Name: KU 22 -6X - Location: Kenai, Alaska. Production Interval Fluid Formula M SA1+Q KU 22 -6X Production Formula 8.5" Interval from 2000 - 6051' Input Description KU 22 -6X Production Formula Mud Weight 9.2 Prehvdrated Gel No Weight Material Code MI WATE Prehydrated Gel Conc. Weight Material SG 4.15 KCI Chloride Weight Material Price KCI Wt% 6 Output -1 bbl Order of Products Concentration Volume Product Addition Field, lb Lab, gm Field, bbl Lab, ml Usage 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosity 4 PolyPac UL 1.50 1.50 0.003 0.63 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 pH Control 6 KlaGard 4.00 4.00 0.011 3.52 Inhibition 7 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 8 Congor 404 2.00 2.00 0.004 1.43 Con Control 9a SafeCarb 20 5.00 5.00 0.005 1.79 Bridging Agent 9b SafeCarb 40 20.00 20.00 0.020 7.14 Bridging Agent 9c SafeCarb 250 5.00 5.00 0.005 1.79 Bridging Agent 10 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Oxygen Scavenger If losses to the Sterling become severe, consider MIX II and GSeal additions with CaCO3. 1 1 1 1 To minimize sliding or high torque problems add 3% of the following LoTorq 14.00 14.00 0.042 14.00 Lubricity Total I 394.8 394.8 Estimated Volume Usage! 1665 Barrels Calculated Mud Weight 9.2 Total Chloride 29600 • • Ai Pk Marathon Oil Company 1FE Well Name: KU 22 -6X Location: Kenai, Alaska. Corrosion Control KU 22 -6X Corrosion control on the KU 22 -6X well, due to no tubing or cleanout run, will be handled by displacing the cement for the 5.5" casing with inhibited 6% KCL brine with 1 drum of Conqor 303A and 1 sack of Sodium Metabisulfite per 100 bbls of brine. • • 11FE Marathon Oil Company 3° Well Name: KU 22 -6X Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. . • M .. Marathon Oil Company -- L. _ IFE Well Name: KU 22 -6X Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE M -I WATE Weighting Agent *1 0 0 E M -I GEL Viscosity control *1 1 0 E GELEX Bentonite Extender 1 1 0 E FLOVIS Viscosifier 1 1 0 E DUAL -FLO Modified Starch 1 1 0 E POLYPAC UL Fluid Loss Reducer *1 1 0 E Safe -Carb F,M,C Bridging and weighting *1 0 0 E agent Nut Plug Loss Circulation Material *1 1 0 E M -I Seal F, M, C Loss circulation Material *1 1 0 E MIX II F,M,C Loss circulation Material *1 1 0 E DESCO CF Dispersant 1 1 0 E TANNATHIN Dispersant 1 1 0 E VENTROL 401 Surfactant 1 1 0 E SALT (NaCI) Densifier 1 0 0 E POTASSIUM Shale Inhibitor 1 0 0 E CHLORIDE - 1 0 AI Marathon Oil Company _ Well Name: KU 22 -6X IFE Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE CAUSTIC SODA Alkalinity control 3 0 1 X CAUSTIC POTASH pH Modifier 3 0 1 X BORAX Inorganic Borate 1 0 0 E SAPP Sodium Pyrophosphate *1 0 0 E SODA ASH Alkalinity control 1 1 0 E SODIUM Alkalinity control 1 0 0 E BICARBONATE CITRIC ACID pH Adjuster 1 0 0 E MYACIDE 25G - Biocide 3 0 0 J DEFOAM X - Defoamer 1 1 0 J G -SEAL Sized graphite LCM 1 1 0 E KLA -GARD Shale Control agent 0 1 0 J LOTORQ Lubricant 1 1 0 J D -D CWT Detergent 2 1 0 J Conqor 404 Corrosion Inhibitor 1 1 0 J Asphasol Supreme Shale Inhibitor 1 1 0 J Soltex Shale Inhibitor 1 1 0 J Sodium Metabisulfite Oxygen Scavenger 1 1 0 J • • ilk 'FE Marathon Oil Company Well Name: KU 22 -6X Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1- Slight hazard 0 - Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A - Safety Glasses B - Safety Glasses, Gloves C - Safety Glasses, Gloves, Synthetic Apron D - Face Shield, Gloves, Synthetic Apron E - Safety Glasses, Gloves, Dust Respirator F - Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G - Safety Glasses, Gloves, Vapor Respirator H - Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I - Safety Glasses, Gloves, Dust and Vapor Respirator J - Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K - Air Line Hood or Mask, Gloves, Full Suit, Boots X - Consult your supervisor for special handling directions 1 Marathon Oil Company Well Name: KU 22 -6X _� • Location: Kenai, Alaska. Contacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga @marathonoil.com 907 565 -3032 907 231 -0663 Marathon Superintendent Will Tank Drilling Engineer wjtank @marathonoil.com 713 296 -3273 713 203 -8398 Marathon Jim Dwyer Project Engineer jdwyer @miswaco.com 907 274 -5011 907 317 -4556 MI SWACO Bob Myles Warehouse Manager rmyles @miswaco.com 907 776 -8680 907 252 -4218 MI SWACO Oliver Amend Field Engineer Miswacogdrl @gmail.com 907 260 -4666 907 590 -3636 MI SWACO (home) Jim Brown Field Engineer sullibrown @gci.net 907 - 398 -9474 907 398 -8500 MI SWACO John Nicholson / Dan Drilling Foremen alaska_drilling @marathonoil.com 907 283 -1312 Byrd Marathon Responsibilities ➢ MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M -I field engineers. ➢ Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avoid offset well problems. ➢ Field Engineers will monitor and supervise product inventory to include re- palletizing any products for shipment to other locations at the end of the well. ➢ Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). ➢ Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. Page 1 of 1 • Maunder, Thomas E (DOA) From: Tank, Will [wjtank c@marathonoil.com] Sent: Thursday, August 28, 2008 4:56 AM To: Maunder, Thomas E (DOA) Cc: Thomas_Zelenka@blm.gov; Berga, Pete Subject: RE: KU 22-6X — Again Attachments: KU 22-6X Drilling Prognosis Revised.ZIP Tom, Pete and 1 discussed your question on the pipe rams on a surface job and we concur that we wouldn't run those rams on a surface job. Normally that wouldn't even be an option since we would only have a diverter on the conductor anyway. You were correct on the typo for the casing sizes on page 12. I've fixed both items in the prognosis and have attached a copy of this for your records. I'm copying Tom Zelenka of the BLM as well, for his information. If you have any questions, please feel free to contact me. Thanks, Will From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Monday, August 25, 2008 11 :44 AM To: Tank, Will Subject: RE: KU 22 -6X -- Again Will, On page 12, I suspect that the casing sizes just didn't get edited. The depths are correct. Thanks, Tom From: Maunder, Thomas E (DOA) Sent: Monday, August 25, 2008 8:08 AM To: Tank, Will Subject: KU 22 -6X Will, I am starting the review of your permit application. After the surface hole is drilled in preparation for running the surface casing, it is stated that the BOP will be equipped with casing rams. That seems unusual for surface casing. Is this what is planned? I look forward to your reply. I will continue my review and will let you know if I have other questions. Best regards, Tom Maunder, PE AOGCC 8/28/2008 TRANSMITTAL LETTER CHECKLIST WELL NAME /C L,/ a ?, - 6 X PTD# o?D,r /J Development, Service Exploratory Stratigraphic Test Non - Conventional Well • FIELD: ,eWd4/ (s7S POOL: oS7 L✓/V67 Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(0, all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- 7 ) 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 WELL PERMIT CHECKLIST Field & Pool KENAI, STERLING 6 GAS - 448568 Well Name: KENAI UNIT 22-6X Program DEV Well bore seg El P'TD#: 2081350 Company MARATHON OIL CO Initial Class/Type DEV / PEND Geo Area 820 Unit 51120 On/Off Shore On Annular Disposal E Administration 1 _Permit fee attached NA 2 _Lease number appropriate Yes 3 Unique well n_ame and number Yes 4 _Well_located in a defined_pool Yes Kenai Gas Field / Sterling Pool. 5 Well located proper distance_ frorn drilling unit boundary Yes 6 _Well_located proper_distance from other wells Yes 7 Sufficient _acreage_available in drilling unit Yes 2560 acres. 8 itdeviated, is_ wellbore platinciuded Yes 9 _Operator only affected party Yes 10 Operator has_appropriate_ bond in force Yes Blanket Bond # 5194234. 11 _Pennit c_an be issued without conservation order Yes Appr Date 12 Permit can be issued without administrative approval Yes ACS 8/21/2008 13 Can permit be approved before 15-day wait Yes • 14 _Welltocated within area and_strata _authorized by Injection Order # (put 10# in comments) (For NA 15 _All wells_within 1/4 mile area of review identified (For service well only) NA 16 Pre-produced injector: duration_of pre-production less than 3 months (For_service well only) _ _ NA 17 _N_onconven, gas_conforrns o AS31,05,030(i.1.A),(t.2.A-D) NA Engineering 18 Conductor string provided Yes 19 _S_urface_casing_protects all_known L1SDWs NA Surface casing set @ 1660' tvd, all aquifers exempted >130_0' tvd 40 CFR 147102 (b)(1)(iii). 20 _C_MT v_ol adequate to circ_ulateon_cond_uctor & s urf csg Yes 21 _CMT_v_ol adequate to tie-in long string to surf csg No 22 _CMT_will coverall known productive horizons Yes 23 Casing designs adequate for 0, T_, B & permafrost Yes 24 _Adequate_tankage_ or reserve pit Yes Rig equipped with steel pits, No reserve pit planned. Ali waste to approved disposal weil(s), 25 If a re-drill has a 10-403 for abandonment been approved NA 26 _Adequate welltme separation proposed Yes Proximity analysis performed. Traveling cylinder path calculated. 27 Adiverter _required, does it _meet regulations No Waiver to have 13-5/8" outlet X0 to 16" line with 12-1/4" hole. Arrangement has been used previously. Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Maximum expected formation pressure7.3 EMW. MW planned up to 9,4 p_pg. TEM 8/28/2008 29 B_OPEs,_dothey meet regulation Yes 11 P 30 _BOPE_p_re_ss rating appropriate; test to_(put psig in comments) Yes MASP w/ 30% mud-70% gas = 822 psi. AOGOC method = 1367 psi. Minimum test pressure 2000 psi. 31 _C_hoke_manifold co mplies w/API RP-53 May 84) Yes 32 Worts will occur without opera tion shutdown Yes 33 1 4 Presence_ of H28 gas pro bable No H2S is not known in CI gas production. 34 _Mechanical_condition of wells within AOR verified (Fo service well only) NA Geology 35 _Permit c_an be issued w/o hydrogen sulfide measures Yes 36 _D_ata_p_resented ort potential ovarpres_sure_zones NA Appr Date 37 _Seiernic_arialysis_ of shallow g as zones NA ACS 8/21/2008 38 _S_eaked_condition suivey(if off-s hore) NA 39 _Contact _name/pho_ne for _weekly_progress reports [exploratory only] Yes Will Tank - 713-296-3273. Geologic Engineering pai,:c Date: 8...e Date Commissioner: sionev iiii3 loner V A0 ,0 4 Iez 7-og • • Well History File APPENDIX Information of detailed nature that is not • particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically • organize this category of information. • NIA MARATHON KU 22 -6X SEC 31 T5N R11 W SM October 11, 2008 — October 23, 2008 I • ',.''''''0..'.. :' ' %' : ti is 11 It . a i il I 111 b. Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist L EPOCH • 9 5 135 1'4Co M MARATHON OIL COMPANY KU 22 -6X • TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 2 1.1. EQUIPMENT SUMMARY 2 1.2. PERSONNEL 2 2. GENERAL WELL DETAILS 3 2.1. OBJECTIVES 3 2.2. WELL RESUME 3 2.3. HOLE DATA 3 3. GEOLOGICAL DATA 4 3.1. SAMPLING PROGRAM AND DISTRIBUTION 6 4. DRILLING DATA 7 4.1. DAILY ACTIVITY SUMMARY 7 4.2. SURVEY RECORD 15 4.3. MUD RECORD 18 4.4. BIT RECORD 20 • 4.5. DRILLING PROGRESS CHART 21 5. MORNING REPORTS 22 FORMATION LOGS APPENDIX II DRILLING DYNAMICS LOGS APPENDIX III Li EPOCH MARATHON OIL COMPANY KU 22 -6X • 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Comments Downtime Low gas readings are pervasive due to the Standard Air Drive Trap Mounted In i tem mud. pre-shearing all s14" straight of p return mud. Falls 14" straight Ditch Gas Possum Belly; FID Total Hydrocarbon down through an air gap as it Analyzer And Chromatograph exits the flowline and impacts the fluid of a tiny possum belly in a wide splash, before reaching the gas trap. Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On 0 Drum Shaft Pump stroke counters Externally Mounted Magnetic Proximity 0 Sensor Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque Hydraulic Pressure Cell 0 Top drive rotary (RPM) Externally Mounted Magnetic Proximity 0 Sensor Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From 0 Flow Paddle Pit volumes Ball and probe sensor 0 ill Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Mud Engineer's work station HP COMPAQ 0 Living quarter's work station HP COMPAQ 0 Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL KU 22 -6X Unit Number: ML006, Years Days Sample Catchers/ Days Days Mudloggers Experience at Trainees at Technician at well well well Craig Silva 31 16 Zack Beekman 10 Steve Forrest 1 Ralph Winkelman 18 12 Ryan Boothe 10 III 2 [i EPOCH il 'ir' 1")# " k " MARATHON OIL COMPANY KU 22 -6X S 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of KU 22 -6X is to drill and log a Single Zone Development Gas well in the Kenai Gas Field with a minimum of hole problems or other concerns. A standard completion will be performed. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: KU 22 -6X Field: Kenai Gas Field County: Kenai Peninsula Borough State: Alaska Company Representatives: Dan Byrd Mitch Burns John Nicholson Rowland Lawson Location: 823' FSL, 1833' FEL, Sec 31 T5N R11W SM, X= 270,794.501, Y= 2,368,176.229 Classification: Single Zone Development Gas API #: 50 — 133 — 20580 — 00 — 00 Permit #: 208 - 1350 Activity Code: (WBS #s) DD.08.18506.CAP.DRL Rig Name / Type: Glacier #1 / Land / Double Elevation: Ground, RKB 59.00'GL, 80.69' RT Primary Targets: / Target Depths: Sterling Pool 6 (5490'MD, 4490'TVD) Primary Targets: / Target Depths . Spud Date: October 11, 2008 Total Depth 5989' Total Depth Formation: Beluga Total Depth Date: October 23, 2008 MWD Company: / Tools Run: Baker Hughes Inteq / Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M -I Drilling Fluids Logging Companies: Weatherford Wireline Services: Quad -Combo on shuttle. 2.3. HOLE DATA KU 22 -6X Hole Maximum Depth T.D. Mud Deviation Casing Shoe Depth F.I.T. Section MD SSTVD Formation pp ( ° in c) MD SSTVD EMW 12' " 2016' 1601.19 Sterling 9.2 49.69 9 %" 2009' 1596.66' 12.0 8 5989' 4908.58' Beluga 9.0 0.43 5 5989' 4908.58' ompdard g Completion • El EPOCH 3 MARATHON OIL COMPANY KU 22 -6X • 3. GEOLOGICAL DATA Sand /Sandstone /Conglomeratic Sand /Conglomerate (3800' - 4100') = olive gray to medium dark gray; locally to medium gray and dark greenish gray; pervasive greenish primary or secondary coloration due to abundant greenstone rock fragments; generally homogeneous overall color; locally has "very dirty greenish pepper mixed with minor salt" appearance; well distributed trace of very distinctive orange to orangish red volcanic rock fragments contrast against the overall greenish gray to gray bulk color; though dominated by greenstones, the lithics fraction is very diverse; the lithics diversity by itself is a significant characteristic; dominantly fine lower to medium lower, but within massive sands, there are many shifts in the median size group; very evident fining upward; lower zones become increasingly conglomeratic; very minor (5 %) second mode of very fine grains appears to be almost entirely glass shards from volcanic ash that have been winnowed out and redeposited; the very fine often appears to be a second mode; angular to subangular; consistent small fraction of subrounded to rounded; lithic fragments are more frequently rounded than quartz grains; dominantly discoidal to subdiscoidal; consistent very minor fraction of subspherical to spherical; very dominantly disaggregated; spotty consolidated pieces are mostly tuffaceous clay matrix supported, but also common matrix and grain supported sandstone with complex mix of inter -grain material that includes tuffaceous clay- ash -silt, calcite and silica cements, replacement mineralization, devitrified ash, "packed" microshards and alteration products. Sand /Sandstone /Conglomeratic Sand /Conglomerate (3800' - 4100') = near 100% compositional graywacke; trace lithic arenite in uppermost zones of massive sands; 30 -60% quartz and volcanic glass, trace feldspar, 5 -15% cryptosilica (chalcedony, chert) and various non - differentiated silica (especially pale brown translucent- opaque agate -like variation), 40 -65% lithics, mafic minerals and non - differentiated minerals; lithics dominated by grayish green, light to dark green and variegated green low grade meta greenstone rock fragments and associated minerals; less abundant are medium gray to dark gray to grayish black medium grade meta argillite - phyllite rock fragments; diverse minor fraction of all other very colorful lithics and minerals; augite, biotite and magnetite are often identifiable, but most of the black and other mafic minerals are less so; note well distributed traces of orangish red volcanic lithics, greenish yellow epidote, yellow citrine, near transparent pale brown to yellowish brown minerals, green chlorite, goldish brownish yellow mica (phlogopite ?) and resinous non -coal black minerals; locally common clastic coal and other carbonaceous fragments; 70 -75% of quartz is colorless to very pale gray to other pale colors and translucent,25 -30% of quartz and near 100% of glass is colorless and transparent. Sand (4220' - 4300') = light to light medium gray; dominantly clear to translucent quartz and volcanic glass; abundant light to dark green lithics and trace dark gray to black and dusky red to orange lithics; very fine upper to rare coarse upper; dominantly fine upper to medium lower; angular to subangular; moderate to well sorted; dominantly disaggregated; trace very fine sandstone, light gray, fragile, grain supported and non calcareous; trace thin coal /carbonaceous shale beds. Tuffaceous Claystone/Tuffaceous Siltstone (4280' - 4400') = light to medium gray to light brownish gray; soft; fragile; irregular to subblocky cuttings; silty to clayey texture; earthy to slightly waxy luster; hydrophilic; moderately soluble; expansive when hydrated; poor adhesiveness; fair cohesiveness; non calcareous; trace very dark brown to black microthin carbonaceous laminations and particles. Sand (4340' - 4460') = light to light medium gray; dominantly clear to translucent quartz and volcanic glass; minor light to dark green, medium gray to black and rare dusky red lithics; very fine lower to coarse lower; dominantly fine upper to medium lower; angular to subangular; moderately well sorted; nearly all disaggregated; trace light brownish gray very fine sandstone is fragile and easily pulverized, grain supported, non calcareous and commonly grading to silty sandstone /sandy siltstone. Note: very poor sample quality due to abundant LCM. Tuffaceous Claystone /Tuffaceous Siltstone (4400'- 4540') = light to medium light gray with light bluish gray and brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings silty to clayey texture; dull to slightly waxy luster; moderately soluble; poor adhesiveness; poor to fair cohesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and particles; trace thin coal beds. Note: very poor sample quality due to abundant LCM. • EI EPOCH 4 M MARATHON OIL COMPANY KU 22 -6X • Sand (4480' - 46001 = light to light medium gray; dominantly clear to translucent quartz and volcanic glass; trace light to dark green, dark gray to black and dusky red to orange lithics; very fine upper to rare coarse lower, dominant fine upper to medium lower; poor to moderate sorting; angular to subangular; disaggregated; trace very fine to fine, light gray, fragile, grain supported, non calcareous sandstone; trace black micro -thin carbonaceous laminations and particles; trace thin coal beds. Very poor sample quality due to abundant LCM. Sand (4650'- 4760') = Extremely poor sample quality due to 90 -95% LCM; medium to medium light gray; dominantly clear to translucent quartz and volcanic glass; minor light to dark gray to black and light to medium greenish gray lithics; very fine upper to medium upper, dominantly fine; angular to subangular; poorly sorted; disaggregated; trace thin coal interbeds. Sand (4340'48401 = note: significantly reduced LCM at 4760'; light gray to light medium gray; dominantly clear to translucent quartz and volcanic glass; trace to minor light to dark green, medium gray to black and rare dusky red lithics; very fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderately well sorted; disaggregated with trace light brownish gray sandstone is very fine, fragile and easily pulverized, grain supported, non calcareous and commonly grades to silty sandstone /sandy siltstone; trace coal. Tuffaceous Claystone/Tuffaceous Siltstone (4760'- 4880') = light to medium light gray; light bluish gray and brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clayey texture; earthy luster; moderately soluble; poor to fair adhesiveness and cohesiveness; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles; trace thin coal beds.. Sand (4840' - 49401 = overall light medium gray; dominantly clear to translucent quartz and volcanic glass with abundant multi - colored lithics that include of light to dark bluish green and greenish gray, black, pale rose and dusky red to orange; very fine upper to coarse lower, dominantly fine lower to medium • lower; angular to subangular; moderately well sorted in fine to medium range, poorly sorted in coarse range; disaggregated; trace light grayish white ashy tuff; fragile; non calcareous. Tuffaceous Claystone / Tuffaceous Siltstone (4880'- 5200') = light medium gray to medium gray with strong light brownish gray secondary hues; many subtle variations to other medium gray and brown primary colors and secondary hues; soft to firm or brittle; very dominant slightly firm or slightly brittle; near equal fractions of very thinly interbedded clay -silt- ash -sand, and massive clays; all from redeposited volcanic ash; local ashy tuffaceous claystone has abundant microshards- shards; clayey to silty to ashy to various soft matte and mixed textures; earthy lustres; microgritty texture and microsparkly lustre when high shard content; dull to waxy luster when clays are becoming devitrified; soft clays are moderately soluble with poor to moderate cohesiveness and adhesiveness; minor coal /carbonaceous shale laminations and /or particles and dark brown to black microthin non - differentiated carbonaceous material. Sand /Sandstone /Conglomeratic Sand (4940' - 54001 = light medium gray to medium gray with generally strong light olive to olive gray secondary hue; greenish coloration from abundant greenstone rock fragments; homogeneous color overall; occasional slight greenish pepper and salt appearance; well distributed trace of distinctive orange to orangish red volcanic rock fragments that contrasts against the gray to greenish gray primary color; note lithics fraction, though dominated by greenstones, is diverse overall; the degree of lithics diversity is a significant characteristic; most sand is moderately sorted in fine lower to medium lower range, but note many slight shifts in the median size groups and discernible fining upward; uppermost zones often fine and moderately well sorted, basal zones are increasingly coarse and poorly sorted; consistent very minor (5 %) fraction of very fine grains that appear to be nearly all glass shards winnowed from volcanic ash and redeposited; the very fine fraction generally appears to be a second mode; angular to subangular; consistent small fraction of subrounded to rounded; note that lithic fragments are more often rounded than the quartz; dominant discoidal to subdiscoidal; but very minor subspherical to spherical grains throughout; very dominantly disaggregated; spotty consolidated pieces mostly tuffaceous clay matrix supported, but also common matrix and grain supported sandstone with complex mix of intergrain material that includes tuffaceous clay- ash -silt, calcite and silica cements, replacement mineralization, devitrified ash, "packed" microshards and alteration products. 4111 [I EPOCH 5 1 (M) MARATHON OIL COMPANY KU 22 -6X Sand/ Sandstone /Conglomeratic Sand (4940'- 5400') = dominant compositional graywacke, minor lithic arenite (in uppermost zones; estimate 40 -75% quartz and volcanic glass, trace feldspar, 5 -15% cryptosilica (chalcedony, chert) and non - differentiated silica, 25 -50% lithics and mafic minerals; lithics dominantly greenstone rock fragments, minor phyllite - argillite rock fragments and black mafic minerals. Sand /Conglomeratic Sand (5360'- 5480') = medium to medium light gray; dominantly clear to translucent quartz and volcanic glass; abundant multi colored lithics and minerals, including light to dark gray, black, pale rose, dusky red, orange, "off- white ", light to dark bluish green and greenish gray; fine lower to pebble; dominantly medium; most conglomerate clasts are fragmented; angular to dominantly subangular; coarse and larger sands have more subrounded to rounded grains; poorly sorted; dominantly disaggregated; very minor consolidated sandstone is well distributed throughout; most consolidated sandstone is fragile and easily pulverized; occasional near - white, ashy supporting matrix; non calcareous. Sand /Conglomeratic Sand (5480'- 5460') = Note: very poor sample quality due to large volume of LCM and greatly reduced rock returns; overall light medium gray; dominantly clear to translucent quartz and volcanic glass; abundant multi colored rock fragments and minerals, including light to dark gray, black, "off- white ", light to dark bluish green, greenish gray, orange and dusky red grains and clasts; very fine upper to pebble, dominantly fine upper to medium lower; angular to trace subrounded, dominantly subangular; poorly sorted; disaggregated. Sand /Conglomeratic Sand (5540'- 5660') = medium to medium light gray; dominantly clear to translucent quartz and volcanic glass; abundant multi colored rock fragments and minerals; common grain colors include light to dark gray, black, pale rose, dusky red, orange, "off- white ", light to dark bluish green and greenish gray; fine lower to pebble; dominantly medium; poorly sorted; dominantly subangular; very coarse and larger grains - clasts are both angular and subrounded- rounded; dominantly disaggregated. Note extremely poor sample quality due to abundance of LCM. • Tuffaceous Claystone/Tuffaceous Siltstone/ Volcanic Ash (5760'- 5945') = redeposited and reworked sediments derived from volcanic ash, closely gradational from one type to another, and with many shared characteristics; microshards and shards present in at least spotty amounts, generally common, and pervasively abundant in volcanic ash and some tuffaceous claystones; note that tuffaceous sandstone is also present in trace to spotty amounts; light brownish gray to light medium gray to medium gray; the gray rocks usually have brownish gray secondary hues; note many subtle associated gray and brown primary colors and secondary hues, and many subtle shifts in lightness values; soft to firm or brittle; very dominant slightly firm to slightly brittle; soft clays are mostly hydrophilic and soluble in part, with moderate to poor adhesiveness and cohesiveness, generally massive and structureless and occasionally very slightly shaly in part; clayey to silty to ashy to various soft matte and mixed textures; trace volcanic ash has remnant textural patterns from the original airfall vitriclastic texture; earthy to microsparkly lusters; locally common pieces with microthin carbonaceous/ coal laminations and particles. 3.1. SAMPLING PROGRAM AND DISTRIBUTION KU 22 -6X Set Type and Purpose Interval Frequency Distribution Marathon Oil Company c/o C & M Storage, Inc. 3311 S U.S. Highway 77 A Washed and Dried 20' Schulenburg, TX 78956 Attn: Dave Martens (713) 296 3302 BOX INTERVALS: 3800'- 5100', 5100' -5940' (2 Boxes Total) • 6 El EPOCH (K)OIL MARATHON OIL COMPANY KU 22 -6X 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 10/07/2008: Continue rig down operations at BC19 and continue moving to the Kenai Gas Field's Pad 34 -31. Lay down torque tube, T -bar, anchor post and torque tube slider. Rig up to lay down, and then rig down BOP conex stairs and beaver slide. Scope down derrick and secure lines and hoses. Start crane operations. Crane down flowline stairs, chokehouse, doghouse, wind walls, flowline and gray iron. Pump off 1000 gallons of fuel and remove fuel tank. Prep camp for move, and then load out and move to Pad 34 -31. Spot, set up and rig up camp at KU 22 -6X location. Lay mast down on carrier. Pull and secure all wires as rig down proceeds. Load out generator, boiler house and water tank. Move mud pumps, shop and parts house. Continue moving, spotting and setting up all rig components as they arrive at the KU 22 -6X location on the Kenai Gas Field's Pad 34 -31. Move carrier off mud boat. Move mud boat off well center. Move sub -base from wellhead, scope down derrick and make road ready. Continue loading trailers for move. Wait for daylight to continue moving. 10/08/2008: All rig down operations at BC19 are completed. Clean up pad and get last rig components ready to move to KU 22 -6X. Continue unloading trucks that arrirve at Kenai Gas Field the previous day. Continue moving to the Kenai Gas Field's Pad 34 -31 at daybreak. Move sub -base over KU 22 -6X conductor and scope up. Move mud boat onto well center. Move carrier onto mud boat. Spot and set Pits and Pumps modules. Spot and set up parts, shop and mechanics houses. Spot and set up generator, boiler house and water tank. Start crane operations. Crane up gray iron, doghouse, flowline, flowline stairs and landing, chokehouse and v -door wind walls. Begin pulling all wires into place. Install panic line. Set BOP conex in place. Raise mast. Crane up back landing and carrier side wind walls. 10/09/2008: Continue rig up operations at KU 22 -6X. Set trip tank. Scope up derrick. Secure guide lines. Rig up catwalk, beaver slide and stairs on top of conex. Rig up hydraulic lines. Make up lower stand pipe and cement lines. Rig up and make up choke lines. Rig up Geronimo line. Install cylinder socks. Rig up geolograph. Rig up stand pipe manifold, fill -up lines, kill lines, splash guards, brake handle, driller's console, dresser sleaves and pop -off lines. Set down matting boards and prep for spotting #3 pump module. Set #3 mud pump module in place and make up all connections to rig. Draw up and secure carrier tarps. Change out Teflon torque bushings on Topdrive. Rig up shock hoses, poor boy, u -tube, derrick board windwalls and accumulator lines. Install cellar grating. Tighten brake blocks. Set cuttings tank in place. Lock down location for MOC drug search. Hold weekly safety meeting during dog inspection. Spot and set Hanson tank. Set up auxiliary generator for pump #3. Take muffler off #1 generator. Repair disc brake and muffler on #1 generator. Replace disc brakes on both drawworks calipers. Set stack in gray iron. Re- install muffler on #1 generator. Rig up and prep for cutting 13 3/8" casing. Cut and dress 13 3/8" casing. Install 13 3/8" Slip Lock Connection by 13 5/8" 5M flanged multi - bowl wellhead and test to 1800psi for 10 minutes. Install spacer spool. Rig up new cement line. 10/10/2008: Continue rig up operations at KU 22 -6X. Spool new drilling line onto carrier spool. String up new drilling line. Install torque tube and tighten turnbuckles. Pick up Topdrive. Unhang blocks and check crown -o- matic. Nipple up BOP stack and diverter. Begin mixing spud mud. Build containment barriers around rig. Set in place EPOCH logging unit, BJ cementing unit and M -I solids van. Off load and spot last matting boards at loading dock. Set up pipe racks and load with 5" drill pipe off of truck flatbeds. Finish mixing spud mud. Ralph Winkelman arrives at KU 22 -6X and rigs up EPOCH's external camp workstations, power to Unit 6, the Gaitronics communications, the Rigwatch 8.7 system, the gas system, the unit's computers and equipment, the analog outputs and the wireless network to camp. • 11 EPOCH 7 M MARATHON OIL COMPANY KU 22 -6X 10/11/2008: Final stage of rig up operations for KU 22 -6X. Continue to nipple up BOPE. Set wear ring. Attach kill line to annular valve. Install new trip tank fill -up line. Install and chain down mousehole. Hang pipe spinner. Pick up tongs, bails and elevators. Level up pipe racks. Load drill pipe. Spot Baker Inteq trailer. Function test diverter, and then follow with full system test. Perform rig audit. Pick up, make up, stand back in derrick and strap 72 joints (36 stands) of 5" drill pipe. Cull bad joints of drill pipe. Pick up, make up, stand back in derrick and strap 21 joints of 5" HWDP plus jars (11 stands). Pick up and make up short drill out assembly (bit, motor, NM pony flex collar, NM stabilizer, MWD). Run in hole and tag bottom at 101' (base of conductor). Drill ahead and Spud Well. Drill from 101' to 197'. Circulate hole clean. Pull 2 stands out of hole, standing back HWDP. Pick up, make up and run in hole remaining directional assembly (2 CSNMDPs, 2 crossovers, shock sub) to 150'. Make up first stand of HWDP out of derrick and run in to tag bottom at 197'. Drill (sliding and rotating) from 197' to 253'. Ralph Winkelman finishes the external rig up and organizes Unit #6 before drilling commences. Steve Forrest arrives on location, initializes Rigwatch for data acquisition, and rigs up and initializes the Starband Satellite system. Craig Silva arrives on location, troubleshoots and restores a tracking failure of the block height system, recalibrates the trip tank sensor, initializes the DML database for KU 22 -6X and calibrates the gas system. 10/12/2008: Drill (sliding and rotating) from 253' to 1881' 10/13/2008: Drill (rotating and sliding) from 1881' to 2016'. Circulate bottoms up and observe large volume of clay returns over shakers. Circulate, clean and condition hole. Check for flow. Pull out of hole from 2016' to 270' on wiper trip. Pulling slick on trip out, but having to use reverse gear to lower blocks due to warped rotor on drawworks disk brake. Troubleshoot and shim drawworks disk brake. Continue pulling out of hole from 270' to 150' (just outside conductor). Run back in hole from 150' to bottom at 2016'. Break circulation. Pump around Hi -Vis LCM (nutplug) sweep. Circulate bottoms up. Circulate, clean and condition hole. Pull out of hole with 5" drill pipe from 2016' to top of HWDP at 809'. Pull and stand back 5" HWDP and jars to top of directional tools at 150'. Break and lay down shock sub and crossovers. Pull and stand back 2 CSNMDPs. Pull, break, and lay down remaining directional tools (MWD, NM stabilizer, NM pony collar, motor, bit). Grade bit. Clear and clean rig floor. Blow down mud lines. Remove drill pipe elevators and short bails. Install long bails and pick -up sling -line. Install casing elevators. Prep to make gauge run with 9 5/8" casing hanger. Pull wear bushing. Close annulus valve. Using single joint elevators, drift BOPs with landing joint and hanger. Mark elevation on landing joint. Move breakout tongs to driller's side and install correct tong head. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Rig up and function stabbing board. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Hold pre -job meeting with all hands on procedures and safety for running surface casing string. Inspect rig -up. Pick up shoe joint and start run -in. Run in hole with 9 5/8" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Pick up and make up shoe track (shoe joint, 1 spacer joint, float collar, "float joint ") and run in hole to 121'. Circulate casing volume through shoe track and check float equipment. Continue running 9 5/8" casing in hole as per Marathon. Attach centralizers as per tally and fill every joint on way in. Run casing from 121' to 889'. Ell EPOCH 8 M MARATHON OIL COMPANY KU 22 -6X Ill 10/14/2008: Continue running 9 5/8" casing in hole as per Marathon program from 889' to tight spot at 1440'. Rig up circulating swage and wash down the remaining 14 stands from 1440' to 2009'. Land hanger on load shoulder in multi -bowl wellhead (at 2009.40'). Drain stack and verify landing. Continue circulating and and conditioning mud before cement job. (Note the wash down and conditioning of well at average 100spm, 196gpm, 180psi). Rig down and lay down casing spider slips and Weatherford casing tongs. Move and re -hang breakout tongs to off side and install correct tong head. Remove tall snub post and replace with short snub post. Build 45 bbl spacer of Mud Clean II preflush. Make up cementing head with top and bottom plugs pre - installed. Continue to circulate and condition mud prior to cement job. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Install cementing head. Pump 40 bbls of Mud Clean II preflush with rig pumps. Switch to BJ pumping unit. Pump 3.0 bbls of water and pressure test lines to 3019psi. Check for and detect slight leak in cement line valve. Bleed off pressure. Change out 2" cement line valve. Pump 2.6 bbls of water and re -test cement lines to 1970psi. Bleed off pressure and shut down. Change out plug dropper on cement head. Pump 0.6 bbls and test cement head and lines to 2068psi. Bleed off pressure. Continue cement job as per Marathon. Open up bottom valve, drop first (bottom) plug and pump out with 0.9 bbls. Observe pin puller assembly leaking around packing. Change pin puller assembly to bull plug. Batch mix cement slurry. Mix and pump 191.0 bbls of 12.0ppg cement slurry (443 sacks of Class G cement plus accelerator chemicals mixed with 108.90 bbls water to batch -up at 10.33 gal /sk and yield of 2.48 cu- ft/sk). Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 4.2 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 141.8 bbls of mud (and 146.0 bbls total displacement). Slow pump rate to bump plug. Plug did not bump. Pump 3 bbls over shoe joint volume and hold pressure. Cement in place. Bleed down pressure. Note 42 bbls of cement slurry returned to surface. Begin wait on cement. Flush down, blow down and rig down BJ cementing head and cement lines. Blow down Topdrive, mud lines and mud pumps. Back out and lay down casing hanger landing joint. Clean rig floor. Begin draining and cleaning pits. Remove casing elevators, long bails and pick up sling line. Install short bails and drill pipe elevators. Rig down and fold up stabbing board. Clear rig floor. Make up 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and test packoff to 5000psi for 15 minutes. Nipple down diverter line knife valve and crossover flange. Blank off diverter line flange. Nipple ea up blind flange, kill line valve and kill line. 10/15/2008: Begin mixing new Flo -Pro mud. Load 50 joints of drill pipe on pipe racks. Continue nippling up BOPE. Install choke line. Pick up and organize tools on rig floor. Clean rig floor and cellar. Test all gas and PVT alarms. Perform accumulator drawdown test. Test pre- charge on accumulator bottles and fill when necessitated. Rig up and make up BOPE testing equipment. Test BOPE and all related components of 13 5/8" stack to 250psi Low / 2000psi High for 10 minutes. Rig down test equipment. Install wear bushing. Test 9 5/8" casing to 1500psi for 30 minutes. Blow down mud lines. Pick up, make up, run in hole and pull out racking back in derrick 32 joints (16 stands) of 5" drill pipe. Change out Topdrive saver sub. Pick up, make up and run in hole lower section of new directional assembly (bit, X- treme motor, NM string stabilizer, NM pony collar, MWD with filter). Orient and scribe MWD tools. Dress monel threads. Surface test MWD tool. Make up and run in hole remaining directional tools (2 NMCSDP flex joints, steel crossover, ball catcher sub, circulating sub). Make up to first stand of HWDP from derrick and run in hole with HWDP and jars to 813'. Test MWD pulse signal. Single in 5" drill pipe on top of bottom hole assembly. Install corrosion ring in first joint of pipe. Pick up off pipe racks, rabbit, drift, make up and run in hole 36 more joints (18 stands) of pre- staged ,prepped and strapped 5" drill pipe from 813' to 1816'. Break circulation. Wash down from 1816' and tag cement at 1920'. Drill out cement plug and remaining shoe tract (float collar at 1925', cement, shoe, rathole) from 1920' to 2016'. 10/16/2008: Drill 20' of new hole from 2016' to 2036'. Circulate bottoms up and circulate clean. Displace old spud mud in hole with new Flo -Pro mud. Cease pumping. Line up and perform Formation Integrity Test to 12.0 EMW. Drill (rotating and sliding) from 2036' to 3822'. 0 Ell EPOCH 9 \ MARATHON OIL COMPANY KU 22 -6X • 10/17/2008: Drill (rotating and sliding) from 3822' to 4220'. Circulate bottoms up. Circulate, clean and condition hole. Pull out of hole from 4220' to 1880' (inside shoe) on wiper trip. Service Topdrive, carrier, crown and blocks. Monitor well (and observe 1 bph static losses). Change out hydraulic hose on Topdrive robotics. Run back in hole from 1880' to 4158'. Wash down from 4158' to bottom at 4220'. Record 7 units of wiper gas. Drill (rotating and sliding) from 4220' to 4639' (3658' TVD). (Observe mud losses to formation of 8 -10 bph while drilling ahead after wiper trip). Lose 20 bbls of mud in 6 minutes while drilling from 4629' to 4639'. Cease drilling and pull up stand. Monitor well and observe static losses of 12 bph. Pull out of hole from 4639' to 4550'. Spot 50 bbl LCM pill (over annular interval from 3850' to 4550'). Lose 70 bbls of mud while pumping pill, but observe no static losses afterwards. Pull out of hole from 4550' to 3748'. Monitor well while building LCM pill and increasing surface mud volume. Static mud losses reduced to 2 bph. 10/18/2008: Continue to monitor well at 3748'. Finish building 50 bbl LCM pill and building 50 bbls of new Flo -Pro mud. Stage up pumps to 325gpm with no losses. Run back in hole from 3748' to 4158'. Observe blown out hydraulic hose on tong loop. Change out tong loop hydraulic hose. Continue running back in hole from 4158' to 4599' with no losses. Break circulation and wash down from 4599' to 4639'. Drill from 4639' to 4642' (at 310gpm), and begin losing fluid at rate of 120bph. Shut down pumps and monitor well. Static losses at 5bph. Spot 50 bbl LCM pill through circulating sub. Lose 27bbls of mud while pumping pill. Monitor well and observe no static losses after pill is pumped. Total losses of 85 bbls. Pull out of hole slowly from 4642' to 3777' to let LCM pill soak and to build volume. Stage pump rate up to 350gpm at 3777'. Drop ball to reopen flow to bit. Run back in hole from 3777' to 4642'. Break circulation. Circulate and condition hole with minimal losses. Record 4 units of wiper gas. Clear annulus of excess LCM before resumption of drilling. Drill (sliding and rotating) from 4642' to 5104'. 10/19/2008: Drill (sliding and rotating) from 5104' to 5180'. Begin losing circulation at an accelerated rate (36 bbls in 13 minutes, 137 bbls in 60 minutes). Pull off bottom and reduce pump rate from 352gpm to 197gpm. Monitor losses. Build 50 bbl pill with concentrated mix of various LCM. Build 100 bbls of • volume. Pump and spot LCM pill in annulus. Drill ahead at reduced pump rate (197gph initially, then increase to 268gph by 5231' and eventually to 335gph by 5294'). Drill (sliding and rotating) from 5180' to 5484'. Begin taking accelerated mud losses while backreaming up during connection at 5484' (21 bbls in 7 minutes). Shut down pumps and observe static losses (approximately 2bph). Slowly stage up pump rate from 156gpm to 315gm with low dynamnic losses (8 bbls in 60 minutes) before resumption of drilling. Drill (sliding and rotating) from 5484' to 5542' while observing additional 138 bbls of dynamic mud loss in 80 minutes, until circulation is lost completely. Cease drilling. Slowlly bring pumps up and re- establish circulation at 156gph. (Lose 42 additional bbls while regaining circulation). Shut down pumps and monitor static losses. Observe no static loss for 30 minutes. Start up pumps and bring pump rate up to 150spm / 294 gpm. Drill (sliding and rotating) from 5542' to 5644'. Begin losing mud almost immediately, but at a relatively low rate of loss (55 bbls in 120 minutes). Lose total circulation at 5644'. Drop and pump ball down to circulating sub (at 119 to 165gpm) and lose additional 103 bbls of mud with no returns. Spot 50 bbl LCM pill. Pull out of hole from 5644' to 4758'. Trip out relatively stable, with only 4 bbls of static mud loss. Let 50 bbl LCM pill drift down and soak in zone of lost circulation. Build mud volume while monitoring well. Observe estimated 8 bbls per hour of static mud loss. II EPOCH 10 M MARATHON OIL COMPANY KU 22 -6X • 10/20/2008: Build total of 235 bbls of mud volume. Mix 50 bbl LCM pill. Continue to monitor well. Lose total of 12 bbis before static losses gradually stop. Stage flow up to 400gpm with no losses. Drop ball to close circulating sub. Stage flow to 350gpm with no losses. Monitor well. No losses, and well actually gains back 8 bbis. Run in hole from 4758' to 5610' with no losses. Wash down from 5610' to 5644'. Circulate hole clean of LCM material. Shakers blinding off. Change out shaker screens from 200s to 165s. Continue circulating at reduced rate to prevent losing mud over shakers. Control drill from 5644' to 5651' (at 50fph, 275gpm, 700psi 2 -5wob, 60rpm, 12 -13K torq) with no dynamic losses to hole but continued mud losses over shakers. Stop drilling to troublehoot and fix hydraulic problem with pump #! Blow suction line on pump #3. Continue to work on with both #1 and #3 mud pumps while circulating at 120gpm with pump #2.. Lose 40 bbls of mud while working on pumps. Get #3 pump back on line. Drill from 5651' to 5654' on pumps #1 and #3. Pull up to 5610' and reclamp suction line on pump #3. Wash back down from 5610' to 5654'. Drill from 5654' to 5673'. Again work on and correct minor problem with #3 pump at connection. Drill from 5673' to 5725'. Lose circulation and all returns. Lose 47 bbls of mud in II minutes before well briefly stabilizes. Drop ball to open circulating sub. Stage flow up to 72gpm with 14 bbis of losses. Pump and spot 50 bbl LCM pill at 118gpm. Note 93 bbls of dynamic mud losses while pumping pill. Shut down pumps and continue to lose 88 bbls of mud in 65 minutes of static losses. Losses gradually slow down and stop. Lose total of 242 bbls from first loss drilling at 5725'. Monitor well while preparing 60bb1 LCM pill. Note 29 bbis of static losses in 97 minutes while preparing second pill. Pump and spot 60 bbl LCM pill at 47- 82gpm. Note 176 bbis of mud loss in 60 minutes while pumping pill. Lose total of 447 bbis of mud since first losses at 5725'. (Note 111 bbls of water on backside). Note no static losses when when dynamic losses stop at finish of second pill. Begin building up 315 bbis of new mud and build 50 bbl LCM pill. Continue to monitor well. 10/21/2008: Continue building mud volume. Build total of 315 bbls of new mud volume. Finish mixing LCM pill. Continue to monitor well. (Static losses reduced to 3bph). Pump and spot 54 bbl at 102gph. Lose 12 bbls of mud while displacing pill. Confirm that water is displaced from annulus and hole is full of mud. Monitor well. Static losses continue at 3bph. Pull out of hole from 5725' to 4850'. (Hole slick with • no problems). Drop ball and close circulating sub. Monitor well. Static losses reduced to 1 bph. Pull out of hole from 4850' to 154'. Break and lay down circulating sub and ball catcher. Clean rig floor. Service rig and Topdrive. Adjust brake and kick rollers. Pick up and make new circulating sub and re- dressed ball catcher. Run in hole from 154' to 2006'. Test #1 mud pump. (Pump 2221 strokes total with 10 bbls dynamic mud loss). Continue running in hole from 2006' to 4852'. Break circulation. Begin pumping at 150gpm and lose 43 bbls of mud in first 16 minutes. Lower pump output to 50gph and reduce rate of dynamic loss to 30bph. Continue to circulate and condition mud for 234 minutes and 13069 strokes total. Experiment with different pump outputs from 40gpm to 200gpm (and a brief 5 minute test to 330gpm) and observe dynamic mud loss at all times. Note 185 bbls of total mud losses at 4852'. Run in hole from 4852' to 5543'. Fill pipe. Wash down slowly from 5543' to 5723' in effort to condition mud. Pull up to 5690' and continue slow circulation. Circulate 5580 strokes for 213 minutes at pump outputs varying from 33gph to 148gph. Lose 85 bbis of dynamic mud loss from start of washing down. Note difficulty conditioning mud due to the many different pills spotted in the hole to control lost circulation. El EPOCH 11 O MARATHON OIL COMPANY KU 22 -6X 10/22/2008: Continue attempts to condition mud using different pump outputs, but shakers contantly blinding off and mud losses continue. Circulate 1544 strokes for 65minutes at pump outputs varying from 30gph to 160gph and have dynamic mud loss of 55 bbls. Total mud loss since washing down to 5723' is 140 bbls. Drop ball and open circulating sub. Pump and spot 25 bbls of the pre -mixed 50 bbl LCM pill. Shakers blinding off with the LCM. Dynamic mud loss of 80 bbls in 2761 strokes while pumping pill. Cease pumping and monitor well. No static losses. Pull out of hole from 5690' to 5230'. Drop ball and close circulating sub. Break circulation and stage up pump output to 120gpm. Shakers blinding off with LCM. Continue staging pumps, changing flow rates, working and washing pipe and cleaning LCM at shakers for next 13.50 hours and 77697 strokes total. Average pump output for first 6.00 hours and 14259 strokes is 128gpm with range from 68 to 134gpm. Average pump output for next 7.50 hours and 63438 strokes is 320gpm and range from 198 to 354gpm. Shakers continually blinding off. Try several screen configurations. Back wash from 5230' to 5168', 7.83 hours into hole conditioning, and then was down from 5168' to 5295'. Work stand of pipe from 5295' to 5230' for last 3.16 hours while attempting to condition mud system. Wash down from 5295' to 5725'. Note no dynamic losses while washing in. Drill from 5725' to 5758' with pump output of 255gpm. Note no dynamic losses while drilling from 5725' to connection at 5737', but lose 98 bbls in 19 minutes while drilling from 5737' to 5758'. Briefly cease pumping and pull up to 5737'. Pump and spot 50 bbl SafeCarb pill and record additional 152 bbls of dynamic mud loss (for 250 bbls total) while pumping at 87gpm. Lose 250 bbls total). Note that losses are negligible when pumps are off. Let SafeCarb LCM pill soak. Pull out of hole from 5758' to 5358'. Monitor well. Note 1 bph static losses. Begin building 50 bbl SafeCarb LCM pill, and building mud volume to 520 bbls. 10/23/2008: Finish building mud volume to 520 bbls (200 new bbls) and mixing new 50bbI LCM pill. Continue to monitor well with static losses at 1 bph. Run back in hole from 5358' to 5737'. Break circulation. Wash down from 5737' to 5758', bringing pump output up to 300gph. Drill from 5758' to 5989'. Lose 20 bbls in 6 minutes while reaming before making the next connection at 5989'. Cease pumping and monitor well. No static losses. Bring pump output up to 79gpm, and then pump and spot • 50 bbl LCM pill. Monitor well. No losses in first 20 minutes of while pill is being spotted, and then lose 76 bbls in next 50 minutes as pill comes into annulus. Stop pumping and monitor well for 20 minutes with no static losses. Marathon decides to stop drilling after determining that sufficient rathole has been made below the well's target section. 5989' (reached at 07:42 Hrs) becomes the TD of well. Drop rabbit. Pull out of hole (SLM) with 5" drill pipe from 5989' to top of bottom hole assembly at 814' (with no correction). Pull and stand back 11 stands of 5" HWDP (21 joints plus jars) to 154'. Break, lay down and load off directional tools (circulating sub, ball- catcher sub, crossover, 2 NMCSDP flex joints, MWD, NM pony collar, NM stabilizer, motor, bit). Clear and clean rig floor. Service rig, Topdrive, crown and blocks. Service carrier clutch. Prepare and stage shuttle logging tools on catwalk. Hold pre -job meeting on procedures and safety for handling Weatherford Logging Services' shuttle logging system. Pick up and make up shuttle outer assembly (reamer, circulating sub, 4 joints of 3 1/2" drill pipe, lower latch, upper latch, 1 joint 3 1/2" drill pipe, float valve, crossover sub). Pick up and make up inner string of WLS Quad - Combo logging tools (with inner latching spear). Install, seat and latch up logging assembly in 3 1/2 drill pipe. Drift all outer tools with 2 1/2" Weatherford drift while making up and running in. Load neutron sources. Run shuttle logging assembly in hole on 5" HWDP (with crossover) to 813'. Pull corrosion ring from first stand of 5" drill pipe. Continue running shuttle logging assembly in hole on 5" drill pipe to 875'. Perform staged pressure check (at 2bpm to 150psi, 4bpm to 345psi, 6bpm to 635psi). Continue running shuttle logging assembly in hole on 5" drill pipe to 2006'. Perform staged pressure check (at 2bpm to 153psi, 4bpm to 352psi, 6bpm to 687psi). Continue running shuttle logging assembly in hole on 5" HWDP (to 2637'). • EP OCH 12 Li M MARATHON OIL COMPANY KU 22 -6X 10/24/2008: . Continue running shuttle logging assembly in hole on 5" HWDP (from 2637') to 4030'. Perform staged pressure check (at 2bpm to 210psi, 4bpm to 420psi, 6bpm to 759psi). Continue running shuttle logging assembly in hole to 5865'. Perform staged pressure check (at 2bpm to 328psi, 4bpm to 530psi, 6bpm to 876psi). Wash down from 5865' to bottom at 5989'. Circulate bottoms up. Record 49 units of trip gas. Continue to circulate, clean and condition hole. Check for flow. Finish circulating and pull back up to 5850'. Drop and pump down Messenger dart to engage assembly. Pressure up until the seating plug is sheared and inner string released. Push out and deploy shuttle logging assembly to 5966'. Check for flow. Pump dry job. Pull out of hole at controlled rate of 30' per minute logging up with Weatherford Logging Service Quad -Combo tools from 5966' to 1943'. Pull out of hole at controlled rate of 60' per minute logging up with Quad -Combo from 1943' to 1001'. Pull out of hole at normal rate from 1001' to top of shuttle assembly at 813'. Pull and stand back 5" HWDP to 183'. Break and lay down 3 1/2" drill pipe. Remove neutron sources. Break, lay down and load off WLS Quad -Combo tools. Break and load off running equipment (upper and lower latches, float valve, circulating sub, muleshoe). Clear and clean rig floor. Weatherford Logging Services begins processing the recorded Quad -Combo data. Service rig while waiting on log processing and evaluation by Marathon geologist. Change out grabber box on Topdrive. Slip 33' of drill line. Lay NMCSDPs (flex collars). Pick up and make up short clean out assembly (bit, bit sub and crossover) to first stand of HWDP. Run in hole with 5" HWDP (plus jars) to 663'. Continue running in hole with 5" drill pipe from 663' to 1981'. Fill pipe. Continue running in hole with 5" drill pipe from 1981' to 4068'. Fill pipe. Continue running in hole with 5" drill pipe from 4068' to 5900'. Break circulation. Wash down from 5900' to bottom at 5989'. Circulate bottoms up. Record 21 units of trip gas. Circulate, clean and condition hole. Spot Lubtex pill around in annulus. Pump Safecarb pill. Check for flow. Blow down mud lines and flush mud pumps. Pull out of hole laying down 5" drill pipe from 5989' (to 5648'). 10/25/2008: Pull out of hole laying down 5" drill pipe from 5648' to 663'. Pull out of hole to surface laying down 5" HWDP to 184'. Break and lay down out of the mousehole the last stand of drill pipe in the derrick. Pull out of hole laying down last joints of 5" HWDP and jars. Break and lay down clean out tools (crossover, bit sub, bit). Pull wear bushing. Run in test plug. Pick up, make up and install test joint. Rig up test equipment. Function pipe rams, HCR and blind rams. Test 2 7/8" by 5 1/2" variable pipe rams to 250psi Low / 2000psi High for 5 minutes. Rig down test equipment. Pull test plug. Lay down make up tongs. Rig down and load off all rig floor bit subs, drill pipe tools, rotary tools, pipe spinners, and pipe tongs. Clear and clean rig floor. Prepare for running in 5 1/2" tubing. Remove drill pipe elevators and short bails. Install long bails and pick -up sling -line. Install Weatherford casing elevators. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Pick up, install and rig up Weatherford casing tongs and tall snub post. (Breakout tongs are on driller's side). Rig up fill -up line, circulating line, and floor valves. Make up low torque EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Hold pre -job meeting with all hands on procedures and safety for running intermediate casing string. Inspect rig -up. Pick up shoe joint and start run -in. Run in hole with 5 1/2" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Pick up and make up shoe track (shoe joint, 2 spacer joints, float collar, additional string joint) and run in hole to 128'. Check float equipment. Continue running 5 1/2" casing in hole. Attach centralizers as per tally and fill casing on way in. Run casing from 128' to 1908'. Break circulation and fill pipe. Record 1 unit maximum gas. Continue running 5 1/2" casing in hole from 1908' to 4548'. Break circulation and fill pipe. Record 1 unit maximum gas. Continue running 5 1/2" casing in hole from 4548' to 5912'. Break circulation and wash down from 5912' to bottom at 5989'. Circulate bottoms up and record 6 units of trip gas. Continue to circulate and condition mud prior to cement job. Wait for BJ to finish pre- mixing cement. El EPOCH 13 M MARATHON OIL COMPANY KU 22 -6X 4110 10/26/2008: Continue to circulate and condition mud prior to cement job. Finish building 150 bbls of 6% KCL brine in 2 vac trucks. Continue to wait on BJ preparations for cement job to begin. (Note VMT #1 motor had frozen and would not start. Cement was transferred from the bulk tank to the cement silo). BJ is prepping to mix 129 bbls of 10.5ppg cement on the fly, while mixing 110 bbls of cement in VMT #2. BJ finishe advance preparations. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Pump 50 bbls of inhibited mud ahead of cement. Finish circulating with rig pumps. Blow air through valves and lines to clear. Rig up cementing head. (Head will have bottom plug installed). Switch to cement lines and BJ pumping unit. Pump 2.0 bbls of water and pressure test lines to 2730psi. Bleed off and line out to pump spacer. Open up bottom valve and kick out first (bottom) plug with 2.2 bbl of water. Bleed off pressure and reload head with top plug. Begin mixing and pumping 26.8 bbls of 10.0ppg SealBond spacer. Finish pumping spacer and shut down. Mix and pump 130.0 bbls of 10.5ppg cement slurry on the fly then follow with 110 bbls of 10.5ppg cement slurry from the batch mixer for 240 bbls total (406 sacks of Class G cement plus accelerator chemicals mixed with 122.25 bbls water to batch -up at 12.637 gal /sk and yield of 3.307 cu- ft/sk). Pipe was reciprocated through cement job. Close valve on cementing head and open up tee to slop tank. Pump 7.6 bbls of water to wash through and clean lines. Close tee. Open top valve on circulating head (middle and bottom valves are closed). Drop top (second) plug. Kick out plug and displace with 136.00 bbls (total) of 6% KCL brine. Slow pump rate as plug bump approaches. Bump plug with 410psi over - pressure (and 1107psi total pressure). Bleed off. Check floats. Cement in place. Note 100% returns during cement job. Begin 24 hour wait on cement. Casing to be suspended in blocks for full 24 hours. Flush, blow down and rig down cementing head and lines. Lay down cementing head. Lay down handling tools, slips, floor and dart valves. Clear and clean rig floor. Band up mud products. Haul off mud. Begin cleaning pits. Clean pill pit and fill with wash water as other pits are being cleaned. Flush #1, #2 and #3 mud pumps. Flush kill line. Flush and washout BOP stack. Flush choke lines, mud manifold mud lines, fill line and trip lines. Band rig equipment for move. Load out mud products. Clean trip tank. Blow down mud pumps, choke lines and mud lines. Prep to change out mix pump. Lay down mousehole. Load out excess 5 1/2" casing and pups. Continue partial rig -down preparations and procedures. Continue loading out trailers and organizing of equipment to be moved across the pad to the next door workover well. Keep location clean as transport loads are moved around. Pickle #3 mud pump. Rig down and prep pump #3 module for move. Cull 5" drill pipe. Rebuild grabber box. Finish cleaning pits and take on clean water. (Note that location water pump went out, necessitating a load of water). Rig down geolograph. Rig down derrick board. Replace doghouse light on windwalls. Pickle #1 and #2 mud pumps. Rebuild hydraulic quick connects fo tugger lines. Check shackles for stack. Telescope and remove cylinder tarps. Rig down mud manifold. Craig Silva rigs down the Rigwatch 8.7 system, the gas system, the Unit 6 computers and equipment, the wireless network to camp, the Starband Satellite system, the Gaitronics communications and unit power. Unit #6 is organized and secured for moving to KU 21- 6RDWO. 10/27/2008: Rig down standpipe manifold. Remove and load off drip pan. Rig down flow nipple, riser, choke line, kill line, fill -up line and turnbuckles. Rig down accumulator lines and panic line. Pick up 5 1/2" casing to put it in tension and set manual slips. Make rough cut on 5 1/2" casing. Rig up bridge cranes to BOP stack. Pick up BOP stack. Set stack on rack. Nipple down and remove BOP stack and spools. Make final clean cut on 5 1/2" casing. Set 5 1/2" packoff and test to 5000psi. Nipple up 13 5/8" by 5 1/8" 5M tubing head adapter to the 5 1/8" 5M tree. Set 2 -way check valve in tubing hanger. Fill tree with methanol and test to 5000psi. Install BPV. Do final cleaning of all pits and hauling off remaining fluids. Completion is to be done without a rig. Continue rig down and move of all Glacier No.1 rig modules, rig equipment, and rig accessory equipment across Kenai Gas Field Pad 34 -31 to the next door KU 21- 6RDWO wellhead. HI EPOCH 14 S • suQ* MARATHON OIL COMPANY KU 22 - 6X 4.2. SURVEY RECORD Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) E/W ( -) (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) (deg /lo0ft) 147 1.29 103.08 146.99 1.24 -0.37 1.61 1.65 103.08 0.88 205 1.66 116.23 204.97 2.46 _ -0.89 3.00 3.13 106.58 0.86 267 2.12 127.59 266.93 4.35 -1.99 4.72 5.12 112.88 0.95 327 2.67 135.65 326.88 6.79 -3.67 6.57 7.53 119.16 1.07 387 3.73 146.64 386.79 10.12 -6.30 _ 8.62 10.68 126.14 2.03 447 5.44 146.81 446.59 14.91 -10.31 11.25 15.26 132.49 2.85 507 8.60 145.49 506.14 22.24 -16.38 15.35 22.45 136.86 5.27 566 12.51 144.57 564.13 33.05 -25.23 21.56 33.19 139.49 6.63 626 16.06 144.03 622.26 47.85 -37.25 30.20 47.95 140.96 5.92 686 17.36 142.57 679.73 65.09 -51.07 40.52 65.19 141.57 2.28 746 19.39 144.84 736.67 84.00 -66.32 _ 51.70 84.09 142.07 3.59 809 22.25 147.98 795.55 106.37 -84.99 64.04 106.42 143.00 4.87 873 24.80 149.16 854.23 131.86 - 106.79 77.35 131.86 144.08 4.05 936 26.93 149.99 910.91 159.24 _ - 130.49 _ 91.26 159.24 145.03 3.43 999 29.97 153.29 966.30 189.01 - 156.91 105.48 189.07 146.09 5.43 1062 33.58 148.76 1019.86 221.97 - 185.88 121.59 222.12 146.81 6.86 1126 36.64 147.01 1072.21 258.71 - 217.04 141.17 258.91 146.96 5.03 1188 37.80 145.79 1121.58 296.20 - 248.27 161.93 296.41 146.89 2.22 1251 39.32 145.46 1170.84 335.46 - 280.68 184.10 335.67 146.74 2.43 1314 41.99 145.62 1218.63 376.50 - 314.52 207.32 376.70 146.61 4.24 1377 45.08 145.38 1264.30 419.88 - 350.28 231.90 420.09 146.49 4.91 1440 47.99 145.64 1307.63 465.60 - 387.96 257.79 465.80 146.40 4.63 1504 50.37 145.53 1349.46 514.02 - 427.91 285.16 514.22 146.32 3.72 1567 49.04 145.09 1390.21 562.07 - 467.42 312.51 562.27 146.23 2.18 1630 48.22 145.38 1431.84 609.35 - 506.26 339.47 609.54 146.16 1.35 1693 49.31 144.69 1473.37 656.72 - 545.08 366.62 656.91 146.08 1.92 1757 49.29 145.72 1515.10 705.24 - 584.93 394.31 705.42 146.02 1.22 El EPOCH 15 • • • (Alk.). MARATHON OIL COMPANY KU 22 -6X Vertical Rectangular Rectangular Closure Measured Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS Depth ( +) N/S ( -) ( +) E/W ( -) (ft) (deg) (deg) (ft ) (ft) (ft) _ (ft) (ft) (deg) ( deg /100 ft) 1819 49.12 145.98 1555.61 752.17 - 623.77 420.66 752.36 146.01 0.42 1883 50.30 146.43 1597.00 800.97 - 664.34 447.81 801.17 146.02 1.92 1946 51.76 146.32 1636.62 849.93 - 705.13 474.93 850.15 146.04 2.32 2085 47.65 146.73 1726.49 955.87 - 793.53 533.40 956.15 146.09 2.97 2148 46.93 145.94 1769.23 1002.14 - 832.06 559.06 1002.44 146.10 1.47 2210 46.36 146.16 _ 1811.79 1047.21 - 869.46 584.24 1047.52 146.10 0.95 2274 46.19 146.60 1856.03 1093.44 - 907.97 609.85 1093.77 146.11 0.56 2336 45.19 146.16 1899.34 1137.79 - 944.92 634.41 1138.13 146.12 1.69 2399 44.77 146.45 1943.90 1182.31 - 981.97 659.12 1182.66 146.13 0.74 2463 44.85 144.97 1989.31 1227.40 - 1019.23 684.53 1227.76 146.11 1.63 2526 45.50 144.23 2033.72 1272.08 - 1055.65 710.41 1272.43 146.06 1.33 2588 44.85 145.38 2077.42 1316.06 - 1091.58 735.76 1316.39 146.02 1.68 2652 45.67 143.51 2122.47 1361.51 - 1128.56 762.19 1361.83 145.97 2.44 2715 46.40 144.10 2166.21 1406.85 - 1165.16 788.97 1407.15 145.90 1.34 2779 45.76 143.97 2210.60 1452.95 - 1202.47 816.04 1453.22 145.84 1.01 2842 44.92 144.31 2254.89 1497.75 - 1238.78 842.29 1498.01 145.79 1.39 2905 44.98 144.06 2299.47 1542.26 - 1274.88 868.34 1542.51 145.74 0.30 2967 44.69 143.94 2343.44 1585.97 - 1310.24 894.03 1586.20 145.69 0.49 3031 44.39 143.94 2389.06 1630.86 - 1346.53 920.46 1631.07 145.64 0.47 3095 43.73 144.12 2435.05 1675.36 - 1382.55 946.60 1675.56 145.60 1.05 3158 43.05 143.31 2480.83 1718.63 - 1417.44 972.21 1718.81 145.55 1.39 3222 43.22 144.57 2527.53 1762.38 - 1452.81 997.97 1762.55 145.51 1.37 3285 43.04 145.53 2573.51 1805.45 - 1488.11 1022.64 1805.62 145.50 1.08 3349 43.05 143.88 2620.29 1849.13 - 1523.76 1047.88 1849.30 145.48 1.76 3413 43.43 143.06 2666.91 1892.97 - 1558.99 1073.98 1893.11 145.44 1.06 3476 42.93 142.30 2712.85 1936.05 - 1593.28 1100.11 1936.17 145.38 1.15 3540 42.34 142.57 2759.93 1979.36 - 1627.64 1126.54 1979.47 145.31 0.97 3603 41.70 143.12 2806.74 2021.51 - 1661.25 1152.01 2021.60 145.26 1.17 3666 40.99 143.05 2854.03 2063.11 - 1694.52 1177.01 2063.19 145.22 1.13 3729 40.74 142.25 2901.68 2104.30 - 1727.29 1202.01 2104.37 145.17 0.92 €l EPOCH 16 0 0 M MARATHON OIL COMPANY KU 22 -6X Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) ENV ( -) (ft ) (deg) (deg) (ft) (ft ) (ft) (ft ) (ft) (deg) ( deg /100ft) 3792 40.23 142.17 2949.59 2145.17 - 1759.61 1227.08 2145.22 145.11 0.81 3855 38.45 142.99 2998.32 2185.07 - 1791.32 1251.35 2185.11 145.06 2.94 3919 37.59 143.40 3048.73 2224.48 - 1822.89 1274.96 2224.51 145.03 1.40 3982 37.08 143.23 3098.83 2262.67 - 1853.53 _ 1297.79 2262.70 145.00 0.83 4045 36.37 141.94 3149.32 2300.32 - 1883.45 1320.67 2300.34 144.96 1.94 4109 35.19 142.80 3201.24 2337.71 - 1913.09 1343.51 2337.72 144.92 1.99 4172 34.29 141.49 3253.01 2373.57 - 1941.44 1365.53 2373.58 144.88 1.86 4235 33.12 141.58 3305.42 2408.47 - 1968.81 1387.28 2408.48 144.83 1.86 4298 31.89 142.25 3358.55 2442.29 - 1995.46 1408.16 2442.29 144.79 2.03 4361 30.40 142.23 3412.47 2474.84 - 2021.21 1428.12 2474.84 144.76 2.37 4424 29.23 144.22 3467.13 2506.15 - 2046.30 1446.87 2506.15 144.74 2.43 4487 27.92 144.30 3522.45 2536.28 _ - 2070.75 1464.48 2536.28 144.73 2.08 4550 26.81 143.36 3578.40 2565.23 - 2094.13 1481.56 2565.23 144.72 1.89 4613 25.72 144.24 3634.90 2593.11 - 2116.63 1498.03 2593.11 144.71 1.84 4676 23.09 145.99 3692.27 2619.13 - 2137.96 1512.93 2619.11 144.71 4.33 4740 20.59 145.15 3751.67 2642.93 - 2157.60 1526.38 2642.93 144.72 3.94 4803 17.65 143.46 3811.19 2663.57 - 2174.37 1538.40 2663.57 144.72 4.75 4866 15.86 143.12 3871.51 2681.72 - 2188.93 1549.26 2681.72 144.71 2.85 4929 13.83 140.83 3932.40 2697.84 - 2201.66 1559.18 2697.84 144.69 3.35 4992 11.23 138.55 3993.90 2711.45 - 2212.10 1568.00 2711.46 144.67 4.20 5056 7.63 133.21 4057.02 _ 2721.82 - 2219.68 1575.22 2721.82 144.64 5.78 5119 4.72 121.03 4119.65 2728.29 - 2223.88 1580.49 2728.30 144.60 5.04 5182 3.14 109.33 4182.51 2732.07 - 2225.79 1584.34 2732.08 144.56 2.80 5246 3.42 107.28 4246.40 2735.02 - 2226.93 1587.82 2735.03 144.51 0.47 5309 2.45 115.95 4309.32 2737.69 - 2228.08 1590.83 2737.71 144.47 1.69 5373 0.79 107.93 4373.29 2739.24 - 2228.82 1592.48 2739.27 144.45 2.61 5562 0.50 163.13 4562.28 2741.07 - 2230.01 1593.95 2741.10 144.44 0.34 5752 0.43 165.96 4752.27 2742.52 - 2231.49 1594.37 2742.55 144.45 0.04 *5989* 0.43 165.96 4989.27 2744.18 - 2233.22 1594.80 2744.20 144.47 0.00 *Projection* El EPOCH 17 • M MARATHON OIL COMPANY KU 22 -6X 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Types: Spud Mud 10 - 2036'; 6% KCI Flo -Pro 2036' - 5989 DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H20 SD MBT pH Alk CI- Ca+ 10/10/08 101 / 101 8.7 57 12 26 10/14/ 15 1 3.0 0/97 0.0 25.0 9.0 0.2 600 100 10/11/08 350 / 350 8.7 85 10 48 29/35/ 14.6 2 3.0 0/97 Tr 25.0 9.2 0.25 600 160 10/12/08 1000 / 967 8.9 82 11 38 26/32/ 12.8 2 4.5 0/96 0.33 22.5 8.5 0.15 500 100 10/12/08 1881 / 1596 9.1 70 12 31 12/17/19 10.4 2 5.5 0/95 0.33 22.5 9.0 0.25 400 80 10/13/08 2016 / 1682 9.2 74 16 28 11/25/35 9.6 2 5.5 0/94 0.25 22.5 9.5 0.25 500 100 10/13/08 2016 / 1682 9.2 75 15 29 12/25/34 9.4 2 6.0 0/94 0.25 22.5 9.5 0.25 500 100 10/14/08 2016 / 1682 _ 10/15/08 2036 / 1695 8.9 52 8 19 7/10/12 6.8 1 4.0 3/93 0.0 0.0 8.8 0.15 33000 100 10/16/08 2620 / 2100 8.9 57 12 22 8/11/12 5.8 1 4.0 3/93 Tr 1.0 9.6 0.25 30000 160 10/16/08 3652 / 2844 9.0 58 13 20 8/11/12 6.0 1 4.5 3/93 Tr 1.67 9.3 0.25 29000 280 10/17/08 4220 / 3293 9.1 58 14 19 8/11/12 6.2 1 5.5 3/92 Tr 2.5 9.5 0.25 30000 200 10/17/08 4220 / 3293 9.2 55 13 16 7/9/11 6.2 1 5.5 3/92 Tr 5.0 10.0 0.30 26500 200 10/17/08 4639 / 3658 9.3 60 14 22 10/14/ 5.8 1 6.0 3/91 Tr 6.25 9.5 0.20 26500 200 10/18/08 4642 / 3661 9.3 58 14 20 8/12/ 6.0 1 6.5 2/92 Tr 5.0 8.5 29000 440 10/18/08 4884 / 3889 9.1 58 13 20 9/12/13 5.8 1 5.5 3/92 Tr 3.5 9.3 0.25 33000 180 10/18/08 5046 / 4047 9.2 56 15 22 11/15/ 6.0 1 6.0 3/91 0.15 5.0 9.3 0.20 31500 200 10/19/08 5446 / 4446 9.2 56 13 21 10/13/ 1 6.0 2/92 0.20 5.0 9.2 0.10 32000 160 10/20/08 5644 / 4644 9.1 53 13 18 9/12/13 7.0 1 3.5 2/95 Tr 2.5 9.4 0.15 32000 200 10/20/08 5725 / 4725 9.0 52 12 20 8/11/11 7.0 1 4.0 2/94 Tr 2.0 9.0 0.20 31000 200 10/20/08 5725 / 4725 8.9 55 13 20 8/11/12 6.6 1 4.0 1/95 Tr 1.0 9.1 0.20 30000 120 10/21/08 5725 / 4725 8.9 70 11 14 8/9/11 8.6 1 4.5 0/95.5 0.0 1.0 9.2 0.10 32500 200 10/21/08 5725 / 4725 8.9 52 11 14 8/9/ 8.0 1 4.5 0/96 Tr 1.0 9.3 0.10 31000 200 10/22/08 5725 / 4725 9.0 53 11 14 7/9/ 7.8 1 4.0 0/96 0.25 1.0 9.0 0.05 29000 240 10/22/08 5725 / 4725 8.9 51 11 14 7/8/ 7.5 1 9.6 10/22/08 5758/ 4758 9.0 57 12 16 8/9/ 8.0 1 4.0 0/96 0.25 1.0 9.2 0.05 33000 240 El EPOCH 18 • MARATHON OIL COMPANY KU 22 -6X Contractor: MI Drilling Fluids Mud Type: 6% KCI Flo -Pro DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H20 SD MBT pH Alk CI- Ca+ 10/23/08 5800 / 4800 9.2 57 12 16 8/9/ 8.0 1 5.5 0/96 0.25 2.5 9.2 0.05 33000 240 10/23/08 5989 / 4989 9.1 61 13 16 8/9/10 7.0 1 5.0 0/95 0.25 2.5 8.8 0.05 30500 280 10/24/08 5989 / 4989 9.2 58 14 19 9/12/13 5.6 1 6.5 1/93 3.50 2.0 8.4 30500 400 10/25/08 5989 / 4989 9.2 57 14 19 9/12/13 5.6 1 6.5 1/93 3.50 2.0 8.4 30500 400 10/26/08 5989 / 4989 8.6 28 1 1 KCL Brine 7.7 30000 EPOCH 19 0 • O MARATHON OIL COMPANY KU 22 -6X 4.4. BIT RECORD BIT SIZE JETS/ AVE WOB PP NO. TYPE S/N TFA IN OUT FT HRS ROP Lo —Avg — Hi RPM Lo — Avg CONDITION — Hi 1 12.25 HTC 5133842 3x18 101 2016 1915 16.72 142.7 0.5 — 10.6 — 49 265 — 1056 1- 1- WT- A- E- 1 -BU -TD MX -1 1x12cj 31.7 — 1211 2 8 5 HCC 7110657 5x16 2016 5989 3973 42.36 120.4 0.7 — 10.2 — 46 386 — 953 - 1- 1- NO- A- X- 1 -NO -TD HCM605 50.0 1228 HCC 3RR 8.5 MXL-1 6054215 3x28 5989 5989 0 n/a n/a n/a n/a n/a Clean ut only E I EPOCH 20 DEPTH (FT) 0 0) 01 A W N O O O CD CD O O O O O O CD O O O O O O O O O O 10/7/2008 M 1 10/8/2008 a r r- 10/9/2008 • G) 10/10/2008 O 10/11/2008 m n 10/12/2008 3 10/13/2008 ♦ `-� D 10/14/2008 • 7J r 10/15/2008 - 0 0 0 F 10/ 16/2008 n • 0 x10/17/2008 D a < z m c n N C 10/18/2008 �' A X w (_ m N 10/19/2008 - x C) X 10/20/2008 10/21/2008 • 10/22/2008 10/23/2008 l l 1 10/24/2008 • N N 2 10/25/2008 • m o CD iv 10/26/2008 • 10/27/2008 - • • Marathon Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR John Nicholson / Dan Byrd DATE Oct 07, 2008 DEPTH 101 PRESENT OPERATION Beginning rig up operations TIME 24:00 YESTERDAY 101 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" © 101' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS @ @ TRIP GAS CUTTING GAS © @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue rig down operations at BC19 and continue moving to the Kenai Gas Field's Pad 34 -31. Lay down torque tube, T -bar, anchor post and torque tube slider. Rig up to lay down, and then rig down BOP conex stairs and beaver slide. Scope down derrick and secure lines and hoses. DAILY Start crane operations. Crane down flowline stairs, chokehouse, doghouse, wind walls, flowline and gray iron. Pump off 1000 gallons of fuel and ACTIVITY remove fuel tank. Prep camp for move, and then load out and move to Pad 34 -31. Spot, set up and rig up camp at KU 22 -6X location. Lay mast SUMMARY down on carrier. Pull and secure all wires as rig down proceeds. Load out generator, boiler house and water tank. Move mud pumps, shop and parts house. Continue moving, spotting and setting up all rig components as they arrive at the KU 22 -6X location on the Kenai Gas Field's Pad 34-31. Move carrier off mud boat. Move mud boat off well center. Move sub -base from wellhead, scope down derrick and make road ready. Continue loading trailers for move. Wait for daylight to continue moving. EPOCH PERSONNEL ON BOARD None DAILY COST Holding: 375 REPORT BY Craig Silva • Marathon III Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR John Nicholson / Mitch Burns DATE Oct 08, 2008 DEPTH 101 PRESENT OPERATION Rig up operations TIME 24:00 YESTERDAY 101 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 101' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE . DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY All rig down operations at BC19 are completed. Clean up pad and get last rig components ready to move to KU 22 -6X. Continue unloading trucks DAILY that arrirve at Kenai Gas Field the previous day. Continue moving to the Kenai Gas Field's Pad 34 -31 at daybreak. Move sub -base over KU 22- ACTIVITY 6X conductor and scope up. Move mud boat onto well center. Move carrier onto mud boat. Spot and set Pits and Pumps modules. Spot and set SUMMARY up parts, shop and mechanics houses. Spot and set up generator, boiler house and water tank. Start crane operations. Crane up gray iron, doghouse, flowline, flowline stairs and landing, chokehouse and v -door wind walls. Begin pulling all wires into place. Install panic line. Set BOP conex in place. Raise mast. Crane up back landing and carrier side wind walls. EPOCH PERSONNEL ON BOARD None DAILY COST Holding: 375 REPORT BY Craig Silva IIII • Marathon Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR John Nicholson / Mitch Bums DATE Oct 09, 2008 DEPTH 101 PRESENT OPERATION Rig up operations TIME 24:00 YESTERDAY 101 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 101' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue rig up operations at KU 22 -6X. Set trip tank. Scope up derrick. Secure guide lines. Rig up catwalk, beaver slide and stairs on top of conex. Rig up hydraulic lines. Make up lower stand pipe and cement lines. Rig up and make up choke lines. Rig up Geronimo line. Install cylinder socks. Rig up geolograph. Rig up stand pipe manifold, fill -up lines, kill lines, splash guards, brake handle, drillers console, dresser sleeves and DAILY pop -off lines. Set down matting boards and prep for spotting #3 pump module. Set #3 mud pump module in place and make up all connections to ACTIVITY rig. Draw up and secure carrier tarps. Change out Teflon torque bushings on Topdrive. Rig up shock hoses, poor boy, u -tube, derrick board SUMMARY windwalls and accumulator lines. Install cellar grating. Tighten brake blocks. Set cuttings tank in place. Lock down location for MOC drug search. Hold weekly safety meeting during dog inspection. Spot and set Hanson tank. Set up auxiliary generator for pump #3. Take muffler off #1 generator. Repair disc brake and muffler on #1 generator. Replace disc brakes on both drawworks calipers. Set stack in gray iron. Re- install muffler on #1 generator. Rig up and prep for cutting 13 3/8" casing. Cut and dress 13 3/8" casing. Install 13 3/8" Slip Lock Connection by 13 5/8" 5M flanged multi -bowl wellhead and test to 1800psi for 10 minutes. Install spacer spool. Rig up new cement line. EPOCH PERSONNEL ON BOARD None DAILY COST Holding: 375 REPORT BY Craig Silva • • Marathon III Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR John Nicholson / Mitch Bums DATE Oct 10, 2008 DEPTH 101 PRESENT OPERATION Rig up operations TIME 24:00 YESTERDAY 101 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 101' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 101 / 101 TVD MW 8.7 VIS 57 PV 12 YP 26 FL 15.0 Gels 10/14/ CL- 600 FC 1 SOL 3.0 SD 0 OIL 0/97 MBL 25.0 pH 9.0 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY DAILY Continue rig up operations at KU 22 -6X. Spool new drilling line onto carrier spool. String up new drilling line. Install torque tube and tighten ACTIVITY tumbuckles. Pick up Topdrive. Unhang blocks and check crown -o- matic. Nipple up BOP stack and diverter. Begin mixing spud mud. Build SUMMARY containment barriers around rig. Set in place EPOCH logging unit, BJ cementing unit and M -I solids van. Off load and spot last matting boards at loading dock. Set up pipe racks and load with 5" drill pipe off of truck flatbeds. Finish mixing spud mud. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1100 Rig up: 1215 REPORT BY Craig Silva • 1 • Mthon EPOCH Kenai G Gas Field DAILY WELLSITE REPORT till KU 22 -6X REPORT FOR John Nicholson / Mitch Bums DATE Oct 11, 2008 DEPTH 253 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 101 24 HOUR FOOTAGE 152 CASING INFORMATION 13 3/8" @ 101' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 147 1.29 103.08 146.99 SURVEY DATA 205 1.66 116.23 204.97 267 2.12 127.59 266.93 327 2.67 135.65 326.88 387 3.73 146.64 386.79 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1 12.25 HCC MXL -1 5133842 3x18 1x12cj 101 152 1.59 In Hole ' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 638.3 @ 208 23.8 @ 199 111.5 62.4 FT /HR SURFACE TORQUE 2489 @ 112 0 @ Sliding 1488.4 761.7 AMPS WEIGHT ON BIT 9 @ 215 1 @ 197 2.3 2.2 KLBS ROTARY RPM 26 @ 190 0 @ Sliding 20.2 Sliding RPM PUMP PRESSURE 596 @ 199 412 @ 206 472.8 436.7 PSI DRILLING MUD REPORT DEPTH 350 / 350 ND MW 8.7 VIS 85 PV 10 YP 48 FL 14.6 Gels 29/35/ CL- 600 FC 2 SOL 3.0 SD Tr OIL 0/97 MBL 25.0 pH 9.2 Ca+ 160 CCI al MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 @ 0.0 TRIP GAS CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Final stage of rig up operations for KU 22 -6X. Continue to nipple up BOPE. Set wear ring. Attach kill line to annular valve. Install new trip tank fill- up line. Install and chain down mousehole. Hang pipe spinner. Pick up tongs, bails and elevators. Level up pipe racks. Load drill pipe. Spot Baker DAILY Inteq trailer. Function test diverter, and then follow with full system test. Perform rig audit. Pick up, make up, stand back in derrick and strap 72 ACTIVITY joints (36 stands) of 5" drill pipe. Cull bad joints of drill pipe. Pick up, make up, stand back in derrick and strap 21 joints of 5" HWDP plus jars SUMMARY (11 stands). Pick up and make up short drill out assembly (bit, motor, NM pony flex collar, NM stabilizer, MWD). Run in hole and tag bottom at 101' (base of conductor). Drill ahead and Spud Well. Drill from 101' to 197'. Circulate hole clean. Pull 2 stands out of hole, standing back HWDP. Pick up, make up and run in hole remaining directional assembly (2 CSNMDPs, 2 crossovers, shock sub) to 150'. Make up first stand of HWDP out of derrick and run in to tag bottom at 197'. Drill (sliding and rotating) from 197' to 253'. EPOCH PERSONNEL ON BOARD 1 DAILY COST RW Rig up: 1100 RW: 635 Tech call -out: 1788 REPORT BY Craig Silva S Marathon , 0 Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR John Nicholson / Mitch Burns DATE Oct 12, 2008 DEPTH 1881 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 253 24 HOUR FOOTAGE 1628 CASING INFORMATION 13 3/8" @ 101' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 447 5.44 146.81 446.59 809 22.25 147.98 795.55 SURVEY DATA 1188 37.80 145.79 1121.58 1567 49.04 145.09 1390.21 1946 51.76 146.32 1336.62 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1 12.25 HCC MXL -1 5133842 3x18 1x12cj 101 1780 15.73 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 375.0 @ 1503 15.8 @ 453 143.4 164.9 FT /HR SURFACE TORQUE 6509 @ 1500 0 @ Sliding 1796.1 5525.7 AMPS WEIGHT ON BIT 30.6 @ 1840 0.5 @ 510 10.7 27.0 KLBS ROTARY RPM 76 @ 1171 0 @ Sliding 49.9 49.5 RPM PUMP PRESSURE 873 @ 1713 265 @ 511 637.7 754.3 PSI DRILLING MUD REPORT DEPTH 1881 / 1596 TVD MW 9.1 VIS 70 PV 12 YP 31 FL 10.4 Gels 12/17/19 CL- 400 FC 2 SOL 5.5 SD 0.33 OIL 0/95 MBL 22.5 pH 9.0 Ca+ 80 CCI ill MWDSUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 @ 0.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill (sliding and rotating) from 253' to 1881' EPOCH PERSONNEL ON BOARD 1 DAILY COST RW: 635 Tech Call -out: 1100 REPORT BY Craig Silva • Marathon • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR John Nicholson / Mitch Burns DATE Oct 13, 2008 DEPTH 2016 PRESENT OPERATION Running 9 5/8" casing as per program TIME 24:00 YESTERDAY 1881 24 HOUR FOOTAGE 135 CASING INFORMATION 13 3/8" @ 101' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2016 (Projection) 50.90 146.00 1680.36 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1 12.25 HCC MXL -1 5133842 3x18 1x12cj 101 2016 1915 16.72 1- 1- WT- A- E- 1 -BU -TD Casing pt. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 289.6 @ 1968 54.1 @ 2011 171.0 102.9 FT /HR SURFACE TORQUE 6425 @ 1969 0 @ Sliding 5553.2 5234.4 AMPS WEIGHT ON BIT 31.7 @ 1884 3.4 @ 2012 18.6 4.0 KLBS ROTARY RPM 54 @ 1999 0 @ Sliding 50.9 49.0 RPM PUMP PRESSURE 1211 @ 1919 754 @ 1881 1104.5 1055.5 PSI DRILLING MUD REPORT DEPTH 2016 / 1680 TVD MW 9.2 VIS 75 PV 15 YP 29 FL 9.4 Gels 12/25/35 CL- 500 FC 2 SOL 6.0 SD 0.25 OIL 0/94 MBL 22.5 pH 9.5 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 @ 0.0 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill (rotating and sliding) from 1881' to 2016'. Circulate bottoms up and observe large volume of clay returns over shakers. Circulate, clean and condition hole. Check for flow. Pull out of hole from 2016' to 270' on wiper trip. Pulling slick on trip out, but having to use reverse gear to lower blocks due to warped rotor on drawworks disc brake. Troubleshoot and shim drawworks disk brake. Continue pulling out of hole from 270' to 150' (just outside conductor). Run back in hole from 150' to bottom at 2016'. Break circulation. Pump around Hi -Vis LCM (nutplug) sweep. Circulate bottoms up. Circulate, clean and condition hole. Pull out of hole with 5" drill pipe from 2016' to top of HWDP at 809'. Pull and stand back 5" HWDP and jars to top of directional tools at 150'. Break and lay down shock sub and crossovers. Pull and stand back 2 CSNMDPs. Pull, break, and lay down remaining directional tools (MWD, NM stabilizer, NM pony collar, motor, bit). Grade bit. Clear and clean rig floor. Blow down mud lines. DAILY Remove drill pipe elevators and short bails. Install long bails and pick -up sling -line. Install casing elevators. Prep to make gauge run with 9 5/8" ACTIVITY casing hanger. Pull wear bushing. Close annulus valve. Using single joint elevators, drift BOPS with landing joint and hanger. Mark elevation on SUMMARY landing joint. Move breakout tongs to driller's side and install correct tong head. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Rig up and function stabbing board. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Hold pre -job meeting with all hands on procedures and safety for running surface casing string. Inspect rig -up. Pick up shoe joint and start run -in. Run in hole with 9 5/8" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Pick up and make up shoe track (shoe joint, 1 spacer joint, float collar, "float joint ") and run in hole to 121'. Circulate casing volume through shoe track and check float equipment. Continue running 9 5/8" casing in hole as per Marathon. Attach centralizers as per tally and fill every joint on way in. Run casing from 121' to 889'. EPOCH PERSONNEL ON BOARD 1 DAILY COST RW: 635 Tech Call -out: 1100 REPORT BY Craig Silva Marathon Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Mitch Burns DATE Oct 14, 2008 DEPTH 2016 PRESENT OPERATION Nippling up BOPE TIME 24:00 YESTERDAY 2016 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2016 / 1680 TVD MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE 411/ DITCH GAS 0 @ 0 @ 0 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue running 9 5/8" casing in hole as per Marathon program from 889' to tight spot at 1440'. Rig up circulating swage and wash down the remaining 14 stands from 1440' to 2009'. Land hanger on load shoulder in multi -bowl wellhead (at 2009.40'). Drain stack and verify landing. Continue circulating and and conditioning mud before cement job. (Note the wash down and conditioning of well at average 100spm, 196gpm, 180psi). Rig down and lay down casing spider slips and Weatherford casing tongs. Move and re -hang breakout tongs to off side and install correct tong head. Remove tall snub post and replace with short snub post. Build 45 bbl spacer of Mud Clean II preflush. Make up cementing head with top and bottom plugs pre - installed. Continue to circulate and condition mud prior to cement job. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Install cementing head. Pump 40 bbls of Mud Clean II preflush with rig pumps. Switch to BJ pumping unit. Pump 3.0 bbls of water and pressure test lines to 3019psi. Check for and detect slight leak in cement line valve. Bleed off pressure. Change out 2" DAILY cement line valve. Pump 2.6 bbls of water and re -test cement lines to 1970psi. Bleed off pressure and shut down. Change out plug dropper on ACTIVITY cement head. Pump 0.6 bbls and test cement head and lines to 2068psi. Bleed off pressure. Continue cement job as per Marathon. Open up SUMMARY bottom valve, drop first (bottom) plug and pump out with 0.9 bbls. Observe pin puller assembly leaking around packing. Change pin puller assembly to bull plug. Batch mix cement slurry. Mix and pump 191.0 bbls of 12.Oppg cement slurry (443 sacks of Class G cement plus accelerator chemicals mixed with 108.90 bbls water to batch -up at 10.33 gal /sk and yield of 2.48 cu- fUsk). Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 4.2 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 141.8 bbls of mud (and 146.0 bbls total displacement). Slow pump rate to bump plug. Plug did not bump. Pump 3 bbls over shoe joint volume and hold pressure. Cement in place. Bleed down pressure. Note 42 bbls of cement slurry returned to surface. Begin wait on cement. Flush down, blow down and rig down BJ cementing head and cement lines. Blow down Topdrive, mud lines and mud pumps. Back out and lay down casing hanger landing joint. Clean rig floor. Begin draining and cleaning pits. Remove casing elevators, long bails and pick up sling line. Install short bails and drill pipe elevators. Rig down and fold up stabbing board. Clear rig floor. Make up 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and test packoff to 5000psi for 15 minutes. Nipple down diverter line knife valve and crossover flange. Nipple up blind flange, kill line valve and kill line. • EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1100 RW: 635 REPORT BY Craig Silva Marathon ID Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Mitch Bums DATE Oct 15, 2008 DEPTH 2016 PRESENT OPERATION Drilling rathole section of shoe tract before drilling 20' of new hole TIME 24:00 YESTERDAY 2016 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 2016 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2016 / 1680 TVD MW 8.9 VIS 52 PV 8 YP 19 FL 6.8 Gels 7/10/12 CL- 33000 FC 1 SOL 4.0 SD 0 OIL 3/93 MBL 0 pH 8.8 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS 4110 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ in shoe tract 0 @ in shoe tract 0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 / 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Begin mixing new Flo -Pro mud. Load 50 joints of drill pipe on pipe racks. Continue nippling up BOPE. Install choke line. Pick up and organize tools on rig floor. Clean rig floor and cellar. Test all gas and PVT alarms. Perform accumulator drawdown test. Test pre- charge on accumulator bottles and fill when necessitated. Rig up and make up BOPE testing equipment. Test BOPE and all related components of 13 5/8" stack to 250psi Low / 2000psi High for 10 minutes. Rig down test equipment. Install wear bushing. Test 9 5/8" casing to 1500psi for 30 minutes. Blow down mud lines. DAILY Pick up, make up, run in hole and pull out racking back in derrick 32 joints (16 stands) of 5" drill pipe. Change out Topdrive saver sub. Pick up, ACTIVITY make up and run in hole lower section of new directional assembly (bit, X -treme motor, NM string stabilizer, NM pony collar, MWD with filter). MWD Orient and scribe MWD tools. Dress monel threads. Surface test MD tool. Make up and run in hole remaining directional tools (2 NMCSDP flex joints, steel crossover, ball catcher sub, circulating sub). Make up to first stand of HWDP from derrick and run in hole with HWDP and jars to 813'. Test MWD pulse signal. Single in 5" drill pipe on top of bottom hole assembly. Install corrosion ring in first joint of pipe. Pick up off pipe racks, rabbit, drift, make up and run in hole 36 more joints (18 stands) of pre- staged ,prepped and strapped 5" drill pipe from 813' to 1816'. Break circulation. Wash down from 1816' and tag cement at 1920'. Drill out cement plug and remaining shoe tract (float collar at 1925', cement, shoe, rathole) from 1920' to 2016'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2625 RW: 635 REPORT BY Craig Silva III Marathon • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Mitch Burns DATE Oct 16, 2008 DEPTH 3822 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 2016 24 HOUR FOOTAGE 1806 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2085 47.65 146.73 1726.49 2526 45.50 144.23 • 2033.72 SURVEY DATA 2967 44,69 143.94 2343.44 3413 43.43 143.06 2666.91 3855 38.45 142.99 2998.32 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 2016 1806 12.96 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 289.2 @ 2207 28.8 @ 2280 151.3 162.6 FT /HR SURFACE TORQUE 8270 @ 3779 0 @ Sliding 4253.1 7648.7 AMPS WEIGHT ON BIT 23.4 @ 2675 0.7 @ 3271 7.7 1.3 KLBS ROTARY RPM 93 @ 2319 0 @ Sliding 58.5 60.9 RPM PUMP PRESSURE 1132 @ 3444 409 @ 2135 683.9 808.0 PSI DRILLING MUD REPORT DEPTH 3652 / 2844 TVD MW 9.0 VIS 58 PV 13 YP 20 FL 6.0 Gels 8/11/12 CL- 29000 FC 1 SOL 4.5 SD Tr OIL 3/93 MBL 1.7 pH 9.3 Ca+ 280 CCI 41110 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 11 @ 3664 0 @ 2017 4.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 2202 @ 3664 160 @ 2017 918.4 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG 5 / 8 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone, Tuffaceous Siltstone. Minor Conglomertic Sand /Conglomerate, Carbonaceous Material, Coal /Carbonaceous Shale. PRESENT TUFFACEOUS CLAYSTONE TUFFACEOUS SILTSTONE.......... LITHOLOGY DAILY ACTIVITY Drill 20' of new hole from 2016' to 2036'. Circulate bottoms up and circulate clean. Displace old spud mud in hole with new Flo -Pro mud. SUMMARY Cease pumping. Line up and perform Formation Integrity Test to 12.0 EMW. Drill (rotating and sliding) from 2036' to 3822'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2625 RW: 635 REPORT BY Craig Silva • • Marathon EPOCH Kenai Gas Field DAILY WELLSITE REPORT El KU 22 -6X REPORT FOR Rowland Lawson / Mitch Burns DEPTH 4639 PRESENT OPERATION Monitoring well and building volume after lost circulation event 17, 2008 9 DATE Oct 7 20 9 TIME 24:00 YESTERDAY 3822 24 HOUR FOOTAGE 817 CASING INFORMATION 9 5/8 @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3919 37.59 143.40 3048.73 4045 36.37 141.97 3149.32 SURVEY DATA 4235 33.12 141.58 3305.42 4424 29.23 144.22 3467.13 4550 26.81 143.36 3578.40 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 2016 2623 20.20 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 284.8 @ 4537 15.1 @ 4606 130.4 94.1 FT /HR SURFACE TORQUE 8904 @ 4504 0 @ Sliding 5753.7 7263.7 AMPS WEIGHT ON BIT 31.3 @ 4479 0.9 @ 4492 9.9 5.3 KLBS ROTARY RPM 100 @ 4185 0 @ Sliding 59.7 60.0 RPM PUMP PRESSURE 1228 @ 4605 697 @ 4159 876.5 904.1 PSI DRILLING MUD REPORT DEPTH 4639 / 3658 TVD MW 9.3 VIS 60 PV 14 YP 22 FL 5.8 Gels 10/14/ CL- 26500 FC 1 SOL 6.0 SD Tr OIL 3/91 MBL 6.25 pH 9.5 Ca+ 200 CCI 410 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 33 @ 4570 0 @ in lost circ zone 9.6 TRIP GAS CUTTING GAS @ @ WIPER GAS 7 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 6675 @ 4570 0 @ in lost circ zone 1942.2 CONNECTION GAS HIGH ETHANE (C -2) © @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 / 0 (lost circulation) PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Conglomeratic Sand /Conglomerate, Volcanic Ash, Coal /Carbonaceous Shale PRESENT No returns due to lost circulation. SAND /SANDSTONE at last retums from 4605'. LITHOLOGY Drill (rotating and sliding) from 3822' to 4220'. Circulate bottoms up. Circulate, clean and condition hole. Pull out of hole from 4220' to 1880' (inside shoe) on wiper trip. Service Topdrive, carrier, crown and blocks. Monitor well (and observe 1 bph static losses). Change out DAILY hydraulic hose on Topdrive robotics. Run back in hole from 1880' to 4158'. Wash down from 4158' to bottom at 4220'. Record 7 units of wiper gas. ACTIVITY Drill (rotating and sliding) from 4220' to 4639' (3658' TVD). (Observe mud losses to formation of 8 -10 bph while drilling ahead after wiper trip). SUMMARY Lose 20 bbls of mud in 6 minutes while drilling from 4629' to 4639'. Cease drilling and pull up stand. Monitor well and observe static losses of 12 bph. Pull out of hole from 4639' to 4550'. Spot 50 bbl LCM pill (over annular interval from 3850' to 4550'). Lose 70 bbls of mud while pumping pill, but observe no static losses afterwards. Pull out of hole from 4550' to 3748'. Monitor well while building LCM pill and increasing surface mud volume. Static mud losses reduced to 2 bph. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 REPORT BY Craig Silva S • Marathon Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Mitch Burns • DATE Oct 18, 2008 DEPTH 5104 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 4639 24 HOUR FOOTAGE 465 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4613 25.72 144.24 3634.90 4740 20.59 145..15 3751.67 SURVEY DATA 4866 15.86 143.12 3871.51 4992 11.23 138.55 3993.90 5119 4.72 121.03 4119.65 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 2016 3088 27.91 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 171.1 @ 4727 9.5 @ 4742 77.1 155.4 FT /HR SURFACE TORQUE 9260 @ 4845 0 © Sliding 7574.5 7493.4 AMPS WEIGHT ON BIT 35.7 @ 5042 2.0 @ 4656 16.4 3.1 KLBS ROTARY RPM 77 @ 4833 0 © Sliding 59.5 57.2 RPM PUMP PRESSURE 1130 © 4844 620 @ 4857 846.8 917.1 PSI DRILLING MUD REPORT DEPTH 5046 / 4047 TVD MW 9.2 VIS 56 PV 15 YP 22 FL 6.0 Gels 11/15/ CL- 31500 FC 1 SOL 6.0 SD 0.15 OIL 3/91 MBL 5.0 pH 9.3 Ca+ 200 CCI 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 29 @ 5063 0 @ 4642 8.7 TRIP GAS CUTTING GAS @ @ WIPER GAS 5 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 5931 @ 5063 1 @ 4641 1731.3 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 4 / 12 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Conglomeratic Sand /Conglomerate, Volcanic Ash. PRESENT LITHOLOGY SAND /SANDSTONE Continue to monitor well at 3748'. Finish building 50 bbl LCM pill and building 50 bbls of new Flo -Pro mud. Stage up pumps to 325gpm with no losses. Run back in hole from 3748' to 4158'. Observe blown out hydraulic hose on tong loop. Change out tong loop hydraulic hose. Continue DAILY running back in hole from 4158' to 4599' with no losses. Break circulation and wash down from 4599' to 4639'. Drill from 4639' to 4642' (at ACTIVITY 310gpm), and begin losing fluid at rate of 120bph. Shut down pumps and monitor well. Static losses at 5bph. Spot 50 bbl LCM pill through SUMMARY circulating sub. Lose 27bbis of mud while pumping pill. Monitor well and observe no static losses after pill is pumped. Total losses of 85 bbls. Pull out of hole slowly from 4642' to 3777' to let LCM pill soak and to build volume. Stage pump rate up to 350gpm at 3777'. Drop ball to reopen flow to bit. Run back in hole from 3777' to 4642'. Break circulation. Circulate and condition hole with minimal losses. Record 4 units of wiper gas. Clear annulus of excess LCM before resumption of drilling. Drill (sliding and rotating) from 4642' to 5104'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 REPORT BY Craig Silva III • Marathon Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Mitch Burns DATE Oct 19, 2008 DEPTH 5644 PRESENT OPERATION Building volume and monitoring well after lost circulation event TIME 24:00 YESTERDAY 5104 24 HOUR FOOTAGE 540 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5182 3.14 109.33 4182.51 5246 3.42 107.28 4246.40 SURVEY DATA 5309 2.45 115.95 4309.32 5373 0.79 107.93 4373.29 5562 0.50 163.13 4562.28 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 2016 3628 37.27 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 161.4 @ 5106 6.1 @ 5320 65.6 57.9 FT /HR SURFACE TORQUE 13169 @ 5612 0 @ Sliding 11447.2 11500.0 AMPS WEIGHT ON BIT 50 @ 5297 1 @ 5485 10.0 4.0 KLBS ROTARY RPM 79 @ 5587 0 @ Sliding 60.5 60.4 RPM PUMP PRESSURE 948 @ 5132 485 @ 5486 711.7 698.9 PSI DRILLING MUD REPORT DEPTH 5644 / 4644 TVD MW 9.2 VIS 56 PV 13 YP 21 FL Gels 10/13/ CL- 32000 FC 1 SOL 6.0 SD 0.2 OIL 2/92 MBL 5.0 pH 9.2 Ca+ 160 CCI S MVVD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 26 @ 5484 1 @ 5503 8.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 5340 @ 5484 210 @ 5503 1732.8 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG 1 / 4 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Volcanic Ash, Tuffaceous Sandstone, Coal /Carbonaceous Shale. PRESENT No returns due to lost circulation. SAND /SANDSTONE /CONGLOMERATIC SAND at last returns from 5610'. LITHOLOGY Drill (sliding and rotating) from 5104' to 5180'. Begin losing circulation at an accelerated rate (36 bbls in 13 minutes, 137 bbls in 60 minutes). Pull off bottom and reduce pump rate from 352gpm to 197gpm. Monitor losses. Build 50 bbl pill with concentrated mix of various LCM. Build 100 bbls of volume. Pump and spot LCM pill in annulus. Drill ahead at reduced pump rate (197gph initially, then increase to 268gph by 5231' and eventually to 335gph by 5294'). Drill (sliding and rotating) from 5180' to 5484'. Begin taking accelerated mud losses while backreaming up during connection at 5484' (21 bbls in 7 minutes). Shut down pumps and observe static losses (approximately 2bph). Slowly stage up pump rate from 156gpm to 315gm DAILY with low dynamnic losses (8 bbls in 60 minutes) before resumption of drilling. Drill (sliding and rotating) from 5484' to 5542' while observing ACTIVITY additional 138 bbls of dynamic mud loss in 80 minutes, until circulation is lost completely. Cease drilling. Slowlly bring pumps up and re- establish SUMMARY circulation at 156gph. (Lose 42 additional bbls while regaining circulation). Shut down pumps and monitor static losses. Observe no static loss for 30 minutes. Start up pumps and bring pump rate up to 150spm / 294 gpm. Drill (sliding and rotating) from 5542' to 5644'. Begin losing mud almost immediately, but at a relatively low rate of loss (55 bbls in 120 minutes). Lose total circulation at 5644'. Drop and pump ball down to circulating sub (at 119 to 165gpm) and lose additional 103 bbls of mud with no returns. Spot 50 bbl LCM pill. Pull out of hole from 5644' to 4758'. Trip out relatively stable, with only 4 bbls of static mud loss. Let 50 bbl LCM pill drift down and soak in zone of lost circulation. Build mud volume while monitoring well. Observe estimated 8 bbls per hour of static mud loss. III EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 REPORT BY Craig Silva 0 Marathon Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Mitch Bums DATE Oct 20, 2008 DEPTH 5725 PRESENT OPERATION Building mud volume TIME 24:00 YESTERDAY 5644 24 HOUR FOOTAGE 81 CASING INFORMATION 9 5/8" @ 2209' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5725 (Projection) 0.50 161.13 4725.27 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 2016 3709 39.27 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 103.2 @ 5675 8.6 @ 5691 48.8 59.5 FT /HR SURFACE TORQUE 14121 @ 5656 10270 @ 5709 11619.1 11176.4 AMPS WEIGHT ON BIT 17.4 @ 5645 1.2 @ 5674 6.7 5.2 KLBS ROTARY RPM 62 © 5724 42 © 5646 60.6 61.2 RPM PUMP PRESSURE 819 © 5713 415 @ 5651 646.3 669.6 PSI DRILLING MUD REPORT DEPTH 5725 / 4725 TVD MW 8.9 VIS 55 PV 13 YP 20 FL 6.6 Gels 8/11/12 CL- 30000 FC 1 SOL 4.0 SD Tr OIL 1/95 MBL 1.0 pH 9.1 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS 0 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 3 @ 5686 1 © 5652 2.2 TRIP GAS CUTTING GAS @ @ WIPER GAS 4 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 657 @ 5686 134 @ 5652 192.3 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 1 / 1 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand, Tuffaceous Claystone, Tuffaceous Siltstone. PRESENT LITHOLOGY No returns due to lost circulation. SAND /SANDSTONE /CONGLOMERATIC SAND at last returns from 5687. Build total of 235 bbls of mud volume. Mix 50 bbl LCM pill. Continue to monitor well. Lose total of 12 bbls before static losses gradually stop. Stage flow up to 400gpm with no losses. Drop ball to close circulating sub. Stage flow to 350gpm with no losses. Monitor well. No losses, and well actually gains back 8 bbls. Run in hole from 4758' to 5610' with no losses. Wash down from 5610' to 5644'. Circulate hole clean of LCM material. Shakers blinding off. Change out shaker screens from 200s to 165s. Continue circulating at reduced rate to prevent losing mud over shakers. Control drill from 5644' to 5651' (at 50fph, 275gpm, 700psi 2 -5wob, 60rpm, 12 -13K torq) with no dynamic losses to hole but continued mud losses over shakers. Stop drilling to troublehoot and fix hydraulic problem with pump #! Blow suction line on pump #3. Continue to work on with both #1 DAILY and #3 mud pumps while circulating at 120gpm with pump #2.. Lose 40 bbls of mud while working on pumps. Get #3 pump back on line. Drill from ACTIVITY 5651' to 5654' on pumps #1 and #3. Pull up to 5610' and reclamp suction line on pump #3. Wash back down from 5610' to 5654'. Drill from 5654' to SUMMARY 5673'. Again work on and correct minor problem with #3 pump at connection. Drill from 5673' to 5725'. Lose circulation and all returns. Lose 47 bbls of mud in II minutes before well briefly stabilizes. Drop ball to open circulating sub. Stage flow up to 72gpm with 14 bbls of losses. Pump and spot 50 bbl LCM pill at 118gpm. Note 93 bbls of dynamic mud losses while pumping pill. Shut down pumps and continue to lose 88 bbls of mud in 65 minutes of static losses. Losses gradually slow down and stop. Lose total of 242 bbls from first loss drilling at 5725'. Monitor well while preparing 60bb1 LCM pill. Note 29 bbls of static losses in 97 minutes while preparing second pill. Pump and spot 60 bbl LCM pill at 47- 82gpm. Note 176 bbls of mud loss in 60 minutes while pumping pill. Lose total of 447 bbls of mud since first losses at 5725'. (Note 111 bbls of water on backside). Note no static losses when when dynamic losses stop at finish of second pill. Begin building up 315 bbls of new mud and build 50 bbl LCM pill. Continue to monitor well. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 0 REPORT BY Craig Silva 0 Marathon Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Mitch Bums DATE Oct 21, 2008 DEPTH 5725 PRESENT OPERATION Conditioning mud after washing last 200' to bottom TIME 24:00 YESTERDAY 5725 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 2016 3709 39.27 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5725 / 4725 TVD MW 8.9 VIS 70 PV 11 YP 14 FL 8.6 Gels 8/9/11 CL- 32500 FC 1 SOL 4.5 SD 0 OIL 0/95 MBL 1.0 pH 9.2 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 5 © 4852 0 @ most of total circulating 1 when getting returns TRIP GAS CUTTING GAS @ @ WIPER GAS 1 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG 0 / 1 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue building mud volume. Build total of 315 bbls of new mud volume. Finish mixing LCM pill. Continue to monitor well. (Static losses reduced to 3bph). Pump and spot 54 bbl at 102gph. Lose 12 bbls of mud while displacing pill. Confirm that water is displaced from annulus and hole is full of mud. Monitor well. Static losses continue at 3bph. Pull out of hole from 5725' to 4850'. (Hole slick with no problems). Drop ball and close circulating sub. Monitor well. Static losses reduced to 1 bph. Pull out of hole from 4850' to 154'. Break and lay down circulating sub and ball DAILY catcher. Clean rig floor. Service rig and Topdrive. Adjust brake and kick rollers. Pick up and make new circulating sub and re- dressed ball catcher. ACTIVITY Run in hole from 154' to 2006'. Test #1 mud pump. (Pump 2221 strokes total with 10 bbls dynamic mud loss). Continue running in hole from 2006' SUMMARY to 4852'. Break circulation. Begin pumping at 150gpm and lose 43 bbls of mud in first 16 minutes. Lower pump output to 50gph and reduce rate of dynamic loss to 3obph. Continue to circulate and condition mud for 234 minutes and 13069 strokes total. Experiment with different pump outputs from 4ogpm to 200gpm (and a brief 5 minute test to 330gpm) and observe dynamic mud loss at all times. Note 185 bbls of total mud losses at 4852'. Run in hole from 4852' to 5543'. Fill pipe. Wash down slowly from 5543' to 5723' in effort to condition mud. Pull up to 5690' and continue slow circulation. Circulate 5580 strokes for 213 minutes at pump outputs varying from 33gph to 148gph. Lose 85 bbls of dynamic mud loss from start of washing down. Note difficulty conditioning mud due to the many different pills spotted in the hole to control lost circulation. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 REPORT BY Craig Silva 0 • Marathon Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Dan Byrd DATE Oct 22, 2008 DEPTH 5758 PRESENT OPERATION Building mud volume before running in hole to attempt drilling ahead TIME 24:00 YESTERDAY 5725 24 HOUR FOOTAGE 33 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5752 0.43 165.96 4752.27 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 2016 3742 39.73 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 120.3 @ 5752 30.1 @ 5727 80.6 85.5 FT /HR SURFACE TORQUE 13021 @ 5758 9241 @ 5737 12081.5 13021.1 AMPS WEIGHT ON BIT 10.0 @ 5735 2.3 @ 5754 5.7 4.1 KLBS ROTARY RPM 48 @ 5733 42 @ 5727 47.0 46.1 RPM PUMP PRESSURE 861 @ 5735 386 @ 5738 671.5 659.8 PSI DRILLING MUD REPORT DEPTH 5758 / 4758 TVD MW 9.0 VIS 57 PV 12 YP 16 FL 8.0 Gels 8/9/ CL- 33000 FC 1 SOL 4.0 SD 0.25 OIL 0/96 MBL 1.0 pH 9.2 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS n/a @ n/a @ n/a No Returns TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N ?A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue attempts to condition mud using different pump outputs, but shakers contantly blinding off and mud losses continue. Circulate 1544 strokes for 65minutes at pump outputs varying from 3ogph to 160gph and have dynamic mud loss of 55 bbls. Total mud loss since washing down to 5723' is 140 bbls. Drop ball and open circulating sub. Pump and spot 25 bbls of the pre -mixed 50 bbl LCM pit. Shakers blinding off with the LCM. Dynamic mud loss of 80 bbls in 2761 strokes while pumping pill. Cease pumping and monitor wet. No static losses. Pull out of hole from 5690' to 5230'. Drop ball and close circulating sub. Break circulation and stage up pump output to 120gpm. Shakers blinding off with LCM. Continue staging pumps, changing flow rates, working and washing pipe and cleaning LCM at shakers for next 13.50 hours and 77697 strokes DAILY total. Average pump output for first 6.00 hours and 14259 strokes is 128gpm with range from 68 to 134gpm. Average pump output for next 7.50 ACTIVITY hours and 63438 strokes is 320gpm and range from 198 to 354gpm. Shakers continually blinding off. Try several screen configurations. Back wash SUMMARY from 5230' to 5168', 7.83 hours into hole conditioning, and then was down from 5168' to 5295'. Work stand of pipe from 5295' to 5230' for last 3.16 hours while attempting to condition mud system. Wash down from 5295' to 5725'. Note no dynamic losses while washing in. Drill from 5725' to 5758' with pump output of 255gpm. Note no dynamic losses while drilling from 5725' to connection at 5737', but lose 98 bbls in 19 minutes while drilling from 5737' to 5758'. Briefly cease pumping and put up to 5737'. Pump and spot 50 bbl SafeCarb pit and record additional 152 bbls of dynamic mud loss (for 250 bbls total) while pumping at 87gpm. Lose 250 bbls total). Note that losses are negligible when pumps are off. Let SafeCarb LCM pill soak. Pull out of hole from 5758' to 5358'. Monitor well. Note 1 bph static losses. Begin building 50 bbl SafeCarb LCM pill, and building mud volume to 520 bbls. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 REPORT BY Craig Silva 1 Marathon K enai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Dan Byrd DATE Oct 23, 2008 DEPTH 5989 PRESENT OPERATION Running in hole with Weatherford's shuttle logging system quad -combo assembly TIME 24:00 YESTERDAY 5758 24 HOUR FOOTAGE 231 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5989 (Projection) 0.43 165.96 4989.27 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 2016 5989 3973 42.36 1- 1- NO- A- X- 1 -NO -TD TD of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 102.6 @ 5930 39.0 @ 5989 91.9 39.0 FT /HR SURFACE TORQUE 12807 @ 5964 10309 @ 5771 11751.4 12335.0 AMPS WEIGHT ON BIT 40.9 @ 5938 3.6 @ 5864 19.9 32.1 KLBS ROTARY RPM 50 @ 5856 26 @ 5841 46.2 46.1 RPM PUMP PRESSURE 1000 @ 5942 632 @ 5801 840.7 790.1 PSI DRILLING MUD REPORT DEPTH 5989 / 4989 TVD MW 9.1 VIS 61 PV 13 YP 16 FL 7.0 Gels 8/9/10 CL- 30500 FC 1 SOL 5.0 SD 0.25 OIL 0/95 MBL 2.5 pH 8.8 Ca+ 280 CCI MWD SUMMARY INTERVAL TO 0 TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 66 @ 5921 0 @ 5989 20.3 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 13386 @ 5922 1 @ 5989 4064.0 CONNECTION GAS HIGH ETHANE (C -2) 4 @ 5921 0 @ 0.2 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone, Tuffaceous Siltstone, Sand /Sandstone, Volcanic Ash. Minor Tuffaceous Sandstone, Coal /Carbonaceous Shale, Conglomeratic Sand. PRESENT No returns due to lost circulation. TUFFACEOUS CLAYSTONE/TUFFACEOUS SILTSTONE at last retums from 5945'. LITHOLOGY Finish building mud volume to 520 bbls (200 new bbls) and mixing new 50bbl LCM pill. Continue to monitor well with static losses at 1 bph. Run back in hole from 5358' to 5737'. Break circulation. Wash down from 5737' to 5758', bringing pump output up to 300gph. Drill from 5758' to 5989'. Lose 20 bbls in 6 minutes while reaming before making the next connection at 5989'. Cease pumping and monitor well. No static losses. Bring pump output up to 79gpm, and then pump and spot 50 bbl LCM pill. Monitor well. No losses in first 20 minutes of while pill is being spotted, and then lose 76 bbls in next 50 minutes as pill comes into annulus. Stop pumping and monitor well for 20 minutes with no static losses. Marathon decides to stop drilling after determining that sufficient rathole has been made below the well's target section. 5989' (reached at 07:42 Hrs) becomes the TD of well. Drop rabbit. Pull out of hole (SLM) with 5" drill pipe from 5989' to top of bottom hole assembly at 814' (with no correction). DAILY Pull and stand back 11 stands of 5" HWDP (21 joints plus jars) to 154'. Break, lay down and load off directional tools (circulating sub, ball - catcher ACTIVITY sub, crossover, 2 NMCSDP flex joints, MWD, NM pony collar, NM stabilizer, motor, bit). Clear and clean rig floor. Service rig, Topdrive, crown and SUMMARY blocks. Service carrier clutch. Prepare and stage shuttle logging tools on catwalk. Hold pre -job meeting on procedures and safety for handling Weatherford Logging Services' shuttle logging system. Pick up and make up shuttle outer assembly (muleshoe, circulating sub, 4 joints of 3 1/2" drill pipe, lower latch, upper latch, 1 joint 3 1/2" drill pipe, float valve, crossover sub). Pick up and make up inner string of WLS Quad -Combo logging tools (with inner latching spear). Install, seat and latch up logging assembly in 3 1/2 drill pipe. Drift all outer tools with 2 1/2" Weatherford drift while making up and running in. Load neutron sources. Run shuttle logging assembly in hole on 5" HWDP (with crossover) to 813'. Pull corrosion ring from first stand of 5" drill pipe. Continue running shuttle logging assembly in hole on 5" drill pipe to 875'. Perform staged pressure check (at 2bpm to 150psi, 4bpm to 345psi, 6bpm to 635psi). Continue running shuttle logging assembly in hole on 5" drill pipe to 2006'. Perform staged pressure check (at 2bpm to 153psi, 4bpm to 352psi, 6bpm to 687psi). Continue running shuttle logging assembly in hole on 5" HWDP (to 2637'). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 REPORT BY Craig Silva Marathon 4110 Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Dan Byrd DATE Oct 24, 2008 DEPTH 5989 PRESENT OPERATION Pulling out of hole laying down 5" drill pipe TIME 24:00 YESTERDAY 5989 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3RR 8.5 HCC MXL -1 6054215 3x28 5989 5989 0 n/a NG Clean out run DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ © RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5989 / 4989 TVD MW 9.2 VIS 58 PV 14 YP 19 FL 5.6 Gels 9/12/13 CL- 30500 FC 1 SOL 6.5 SD 3.5 OIL 1/93 MBL 2.0 pH 8.4 Ca+ 400 CCI MIND SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 49 @ TG on shuttle run 2 @ last pumps on on clean out run 11 on clean out run TRIP GAS 49, 21 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue running shuttle logging assembly in hole on 5" HWDP (from 2637') to 4030'. Perform staged pressure check (at 2b pm to 210psi, 4bpm to 420psi, 6bpm to 759psi). Continue running shuttle logging assembly in hole to 5865'. Perform staged pressure check (at 2bpm to 328psi, 4bpm to 530psi, 6bpm to 876psi). Wash down from 5865' to bottom at 5989'. Circulate bottoms up. Record 49 units of trip gas. Continue to circulate, clean and condition hole. Check for flow. Finish circulating and pull backup to 5850'. Drop and pump down Messenger dart to engage assembly. Pressure up until the seating plug is sheared and inner string released. Push out and deploy shuttle logging assembly to 5966'. Check for flow. Pump dry job. Pull out of hole at controlled rate of 30' per minute logging up with Weatherford Logging Service Quad -Combo tools from 5966' to DAILY 1943'. Pull out of hole at controlled rate of 60' per minute logging up with Quad -Combo from 1943' to 1001'. Pull out of hole at normal rate from ACTIVITY 1001' to top of shuttle assembly at 813'. Pull and stand back 5" HWDP to 183'. Break and lay down 3 1/2" drill pipe. Remove neutron sources. SUMMARY Break, lay down and load off WLS Quad -Combo tools. Break and load off running equipment (upper and lower latches, float valve, circulating sub, muleshoe). Clear and clean rig floor. Weatherford Logging Services begins processing the recorded Quad -Combo data. Service rig while waiting on log processing and evaluation by Marathon geologist. Change out grabber box on Topdrive. Slip 33' of drill line. Lay NMCSDPs (flex collars). Pick up and make up short clean out assembly (bit, bit sub and crossover) to first stand of HWDP. Run in hole with 5" HWDP (plus jars) to 663'. Continue running in hole with 5" drill pipe from 663' to 1981'. Fill pipe. Continue running in hole with 5" drill pipe from 1981' to 4068'. Fill pipe. Continue running in hole with 5" drill pipe from 4068' to 5900'. Break circulation. Wash down from 5900' to bottom at 5989'. Circulate bottoms up. Record 21 units of trip gas. Circulate, clean and condition hole. Spot Lubtex pill around in annulus. Pump Safecarb pill. Check for flow. Blow down mud lines and flush mud pumps. Pull out of hole laying down 5" drill pipe from 5989' (to 5648'). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2625 RW: 635 REPORT BY Craig Silva I Marathon 11, Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Dan Byrd DATE Oct 25, 2008 DEPTH 5989 PRESENT OPERATION Circulating prior to cementing the 5 1/2" casing TIME 24:00 YESTERDAY 5989 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 2009' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ © KLBS ROTARY RPM © @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5989 / 4989 TVD MW 9.2 VIS 57 PV 14 YP 19 FL 5.6 Gels 9/12/13 CL- 30500 FC 1 SOL 6.5 SD 3.5 OIL 2/92 MBL 2.0 pH 8.4 Ca+ 400 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE Ill DITCH GAS 6 @ TG at 5989 0 @ after 2 BUS 0 after muliple circulations TRIP GAS 6 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 / 1 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pull out of hole laying down 5" drill pipe from 5648' to 663'. Pull out of hole to surface laying down 5" HWDP to 184'. Break and lay down out of the mousehole the last stand of drill pipe in the derrick. Pull out of hole laying down last joints of 5" HWDP and jars. Break and lay down clean out tools (crossover, bit sub, bit). Pull wear bushing. Run in test plug. Pick up, make up and install test joint. Rig up test equipment. Function pipe rams, HCR and blind rams. Test 2 7/8" by 5 1/2" variable pipe rams to 250psi Low / 2000psi High for 5 minutes. Rig down test equipment. Pull test plug. Lay down make up tongs. Rig down and load off all rig floor bit subs, drill pipe tools, rotary tools, pipe spinners, and pipe tongs. Clear and clean rig floor. Prepare for running in 5 1/2" tubing. Remove drill pipe elevators and short bails. Install long bails and pick -up sling -line. Install Weatherford casing elevators. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Pick DAILY up, install and rig up Weatherford casing tongs and tall snub post. (Breakout tongs are on driller's side). Rig up fill -up line, circulating line, and floor ACTIVITY valves. Make up low torque EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Pick up centralizers and SUMMARY lock rings and stage on rig floor. Hold pre -job meeting with all hands on procedures and safety for running intermediate casing string. Inspect rig - up. Pick up shoe joint and start run -in. Run in hole with 5 1/2" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Pick up and make up shoe track (shoe joint, 2 spacer joints, float collar, additional string joint) and run in hole to 128'. Check float equipment. Continue running 5 1/2" casing in hole. Attach centralizers as per tally and fill casing on way in. Run casing from 128' to 1908'. Break circulation and fill pipe. Record 1 unit maximum gas. Continue running 5 1/2" casing in hole from 1908' to 4548'. Break circulation and fill pipe. Record 1 unit maximum gas. Continue running 5 1/2" casing in hole from 4548' to 5912'. Break circulation and wash down from 5912' to bottom at 5989'. Circulate bottoms up and record 6 units of trip gas. Continue to circulate and condition mud prior to cement job. Wait for BJ to finish pre- mixing cement. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2625 RW: 635 REPORT BY Craig Silva 4111 • Marathon Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Dan Byrd DATE Oct 26, 2008 DEPTH 5989 PRESENT OPERATION Partial rig down ops before cutting 5 1/2" casing and setting tree TIME 24:00 YESTERDAY 5989 24 HOUR FOOTAGE 0 CASING INFORMATION 5 1/2" @ 5989' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ © FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5989 / 4989 TVD MW 8.6 VIS 28 PV 1 YP 1 FL Gels CL- 30000 FC KCL Brine SOL SD OIL MBL pH 7.7 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE III DITCH GAS 1 @ Displ w/ brine 0 @ Displ w/ brine 0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ © CONNECTION GAS HIGH ETHANE (C -2) @ © AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue to circulate and condition mud prior to cement job. Finish building 150 bbls of 6% KCL brine in 2 vac trucks. Continue to wait on BJ preparations for cement job to begin. (Note VMT #1 motor had frozen and would not start. Cement was transferred from the bulk tank to the cement silo). BJ is prepping to mix 129 bbls of 10.5ppg cement on the fly, while mixing 110 bbls of cement in VMT #2. BJ finishe advance preparations. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Pump 50 bbls of inhibited mud ahead of cement. Finish circulating with rig pumps. Blow air through valves and lines to clear. Rig up cementing head. (Head will have bottom plug installed). Switch to cement lines and BJ pumping unit. Pump 2.0 bbls of water and pressure test lines to 2730psi. Bleed off and line out to pump spacer. Open up bottom valve and kick out first (bottom) plug with 2.2 bbl of water. Bleed off pressure and reload head with top plug. Begin mixing and pumping 26.8 bbls of 10.0ppg SealBond spacer. Finish pumping spacer and shut down. Mix and pump 130.0 bbls of 10.5ppg cement slurry on the fly then follow with 110 bbls of 10.5ppg cement slurry from the batch mixer for 240 bbls total (406 sacks of Class G cement plus accelerator chemicals mixed with 122.25 bbls water to batch -up at 12.637 gal /sk and yield of 3.307 cu- ft/sk). Pipe was reciprocated through cement job. Close valve on cementing head and open up tee to slop tank. Pump 7.6 bbls of water to wash through and clean lines. Close tee. Open top valve on circulating head (middle DAILY ACTIVITY and bottom valves are closed). Drop top (second) plug. Kick out plug and displace with 136.00 bbls (total) of 6% KCL brine. Slow pump rate as plug SUMMARY bump approaches. Bump plug with 41 Opsi over - pressure (and 1107psi total pressure). Bleed off. Check floats. Cement in place. Note 100% returns during cement job. Begin 24 hour wait on cement. Casing to be suspended in blocks for full 24 hours. Flush, blow down and rig down cementing head and lines. Lay down cementing head. Lay down handling tools, slips, floor and dart valves. Clear and clean rig floor. Band up mud products. Haul off mud. Begin cleaning pits. Clean pill pit and fill with wash water as other pits are being cleaned. Flush #1, #2 and #3 mud pumps. Flush kill line. Flush and washout BOP stack. Flush choke lines, mud manifold mud lines, fill line and trip lines. Band rig equipment for move. Load out mud products. Clean trip tank. Blow down mud pumps, choke lines and mud lines. Prep to change out mix pump. Lay down mousehole. Load out excess 5 1/2" casing and pups. Continue partial rig -down preparations and procedures. Continue loading out trailers and organizing of equipment to be moved across the pad to the next door workover well. Keep location clean as transport loads are moved around. Pickle #3 mud pump. Rig down and prep pump #3 module for move. Cull 5" drill pipe. Rebuild grabber box. Finish cleaning pits and take on clean water. (Note that location water pump went out, necessitating a load of water). Rig down geolograph. Rig down derrick board. Replace doghouse light on windwalls. Pickle #1 and 0 #2 mud pumps. Rebuild hydraulic quick connects fo tugger lines. Check shackles for stack. Telescope and remove cylinder tarps. Rig down mud manifold. EPOCH PERSONNEL ON BOARD 2 DAILY COST RW: 2625 RW: 635 Rig Down: 2400 REPORT BY Craig Silva Marathon • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KU 22 -6X REPORT FOR Rowland Lawson / Dan Byrd DATE Oct 27, 2008 DEPTH 5989 PRESENT OPERATION Rig down operations TIME 24:00 YESTERDAY 5989 24 HOUR FOOTAGE 0 CASING INFORMATION 5 1/2" @ 5889' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE 0 DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Rig down standpipe manifold. Remove and load off drip pan. Rig down flow nipple, riser, choke line, kill line, fill -up line and turnbuckles. Rig down accumulator lines and panic line. Pick up 5 1/2" casing to put it in tension and set manual slips. Make rough cut on 5 1/2" casing. Rig up bridge DAILY cranes to BOP stack. Pick up BOP stack. Set stack on rack. Nipple down and remove BOP stack and spools. Make final clean cut on 5 1/2" ACTIVITY casing. Set 5 1/2" packoff and test to 5000psi. Nipple up 13 5/8" by 5 1/8" 5M tubing head adapter to the 5 1/8" 5M tree. Set 2 -way check valve in SUMMARY tubing hanger. Fill tree with methanol and test to 5000psi. Install BPV. Do final cleaning of all pits and hauling off remaining fluids. Completion is to be done without a rig. Continue rig down and move of all Glacier No.1 rig modules, rig equipment, and rig accessory equipment across Kenai Gas Field Pad 34 -31 to the next door KU 21 -6RDW0 wellhead. EPOCH PERSONNEL ON BOARD None DAILY COST Holding: 375 REPORT BY Craig Silva II
