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Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. W ell Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10.Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 9,850 feet See schematic feet true vertical 9,513 feet 4,286 feet Effective Depth measured 4,050 feet See schematic feet true vertical 3,737 feet See schematic feet Perforation depth Measured depth 3,967 - 4,005 feet True Vertical depth 3,665 - 3,693 feet 3-1/2"9.3 / L-80 4,048 MD 3,735 TVD Tubing (size, grade, measured and true vertical depth)3-1/2"9.3 / N-80 5,690 MD 5,377 TVD Packers and SSSV (type, measured and true vertical depth)See schematic 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Prior to well operation: Subsequent to operation: 15.W ell Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16.W ell Status after work:Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Contact Name: Contact Email: Authorized Title:Contact Phone: 321-494 Sr Pet Eng: 7,500psi Sr Pet Geo:Sr Res Eng: Authorized Name and Digital Signature with Date: WINJ WAG 25 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 0 22 8,430psi Jake Flora jake.flora@hilcorp.com (907) 777-8442Dan Marlowe - Operations Manager measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 990599 0 18 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 139' 1,675' N/A 85 Structural TVD STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 208-106 50-133-20578-00-00 N/A 5. Permit to Drill Number:2. Operator Name 4. W ell Class Before Work: A028142 Kenai Gas Field / Sterling 3 Gas Pool & Sterling 4 Gas Pool 3800 Centerpoint Dr, Suite 1400 Anchorage, AK 99503 3. Address: Kenai Deep Unit 9 Hilcorp Alaska, LLC Other: Cementing Operations measuredPlugs Junk measured N/A Length 139' 1,675' Size Conductor Surface Intermediate 20" 13-3/8" 9-5/8" Liner #1 Liner #2 5,668' 3,476' 1,154' Casing 139' 1,608' 5,355' 8,642' 4-1/2" 5,668' 8,995' 9,845' 9,532' 7" 3,090psi 5,410psi 3,060psi 3,450psi 5,750psi 7,240psi Burst Collapse 1,500psi 1,950psi L G Form 10-404 Revised 10/2021 Submit Within 30 days of Operations By Samantha Carlisle at 10:01 am, Nov 19, 2021 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2021.11.19 09:01:11 -09'00' Dan Marlowe (1267) BJM 12/1/21 RBDMS HEW 11/19/2021 DSR-11/22/21SFD 11/29/2021 1 Winston, Hugh E (OGC) From:Jacob Flora <Jake.Flora@hilcorp.com> Sent:Monday, November 29, 2021 11:22 AM To:McLellan, Bryan J (OGC) Subject:KDU 9 RWO 10-404 - MIT of CIBP test chart Attachments:KDU-09 MIT CSG 10-2-21.pdf Hi Bryan, Here is the MIT of the CIBP, it held solid. This should have been mentioned in the ops summary. Thanks, Jake From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Monday, November 29, 2021 6:14 AM To: Jacob Flora <Jake.Flora@hilcorp.com> Subject: [EXTERNAL] KDU 9 RWO 10‐404 Jake, Was the CIBP pressure tested to 1500 psi per Sundry 321‐494? There is no mention of it in the 10‐404. Thanks Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250‐9193 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. 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Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status A-10 3,967' 3,976' 3,665' 3,664' 9' 10/14/2021 Open A-10 3,992' 3,997' 3,680' 3,685' 5' 10/14/2021 Open A-10 4,000' 4,005' 3,688' 3,693' 5' 10/14/2021 Open B1A 4,105' 4,140' 3,792' 3,827' 35' 10/2/2021 Isolated B2A 4,201' 4,211' 3,888' 3,898' 10' 10/2/2021 Isolated B5B 4,548’ 4,558’ 4,236' 4,245' 10’ 10/2/2021 Isolated UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: 500'3º / 100 ft starting @ 500' - 1,600' 0º Alaska 3,665' - 9,195'3,967' - 9,508' Kenai Peninsula Borough USA PERFORATION DETAIL D2 21'66'10/23/2008 Juanita Lovett Last Revision Date: November 18, 2021 Kenai Deep Unit #9 Kenai Gas Field, A-028142 KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #: 208-1060 API #: 50-133-20578-00-00 Prop. Des: A - 028142 KB elevation: 87' (21' AGL) WBS #: Latitude: 60° 27' 32.71" N Longitude: 151° 14' 50.27" W X: 274,850.67 Y: 2,361,856.78 Spud: 7/14/2008 TD: 8/5/2008 Rig Released: 8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' TD 9,850' MD 9,513' TVD PBTD 4,050' MD 3,737' TVD Tubing 3-1/2" L-80 9.3 ppf EUE (ran 10-03-21)Top Bottom MD Surface 4,048'TVD Surface 3,735' 3-1/2" N-80 9.3 ppf EUE (2.992" ID) Top Bottom MD 4,770' 5,690' TVD 4,457' 5,377' SCHEMATIC D2 D3b 4-1/2" Liner Top Pkr @ 8,691' 4940' 9-5/8" DHL Hydraulic Ret Pkr Btm of Tbg @ 5,690' 7" TOC @ 5,670' per CBL (4/28/20) 9-5/8" TOC @ 2270' CBL (4/29/20) 4760' 9-5/8" CIBP w 35' cmt (12/4/20) B5B 4286' TOC B1A B2A 3-1/2 TOC @ 2982' (CBL 10-05-21) A-10 4286' FISH DETAIL: 164' of 3-1/2" 9.3# Tbg Cmt plug 9108' (4/15/20) 4060' CIBP (10-2-21) A-10 3,967' 3,976' 3,665' 3,664' 9' 10/14/2021 Open A-10 3,992' 3,997' 3,680' 3,685' 5' 10/14/2021 Open A-10 4,000' 4,005' 3,688' 3,693' 5' 10/14/2021 Open B1A 4,105' 4,140' 3,792' 3,827' 35' 10/2/2021 Isolated B2A 4,201' 4,211' 3,888' 3,898' 10' 10/2/2021 Isolated B5B 4,548’ 4,558’ 4,236' 4,245' 10’ 10/2/2021 Isolated Rig Start Date End Date Rig 401 9/29/21 10/21/21 09/29/2021 - Wednesday Mobe rig & support equipment from Beaver Creek to Kenai Gas field. Lay out felt and liner, set base beam, spot carrier, and support equipment. Raise and scope derrick. 09/30/2021 - Thursday PJSM continue rigging up support equipment, hook up hoses to pits, pump and Rain for Rent tank, inspect winter pump, fill pits with 70 bbls of water 8.4 ppg water. Bull head 60 bbls 8.4 ppg water at 2.5 bpm at 135 psi. Final pressure "0" psi, shut down pump monitor well, wall on vacuum, continue to monitor well pressured up to 100 psi. Bull head another 60 bbls of 8.4 ppg water, at 2.5 bpm at 135 psi finial pressure "0" shut down pump monitor well, well on vacuum, pressure started building up. Bull head 60 bbls of 8.4 ppg water monitor well, dropped down to slight vacuum, set BPV. Nipple down tree, m/up Blanking sub into hanger. Nipple up 13-5/8" BOPE equipment, secure well for night. 10/01/2021- Friday 10/02/2021 - Saturday PJSM continue to nipple up 13-5/8" BOPE , hook up choke and kill lines , install floor and stairs. Build 3-1/2" test joint. Test BOPE and related surface equipment to 250 low and 2,500 psi hi, All components passed, test made with water and held 5 minutes on chart, witness waived by AOGCC Jim Regg. Pump 20 bbls through BPV , pull same, pump 23 bbls drill express pill. displace with 25 bbls 8.4 ppg water, well on slight vacuum, make up landing jt. Back out lock down pins, pull hanger to floor, hanger unseated at 45k, first packer sheared at 95k continue pulling second packer sheared at 85k, p/up and lay out hanger. Circulate down tbg taking returns to pits, clean water coming back pits shut down pump well on vacuum. Pooh slow due to packer drag, with 3.5 EUE tbg racking back in derrick, to 3,447 ft. Blow down lines and secure well for night. PJSM check well pressure "0" continue POOH f/ 348 ft. to surface lay down both packers, x/nipple, & WLEG. Rig up Alaska E- line, rig up shooting nipple flange, & lubricator, P/test lubricator to 1,500 psi. Rih Gamma Ray/ CCl & 9.5/8" CIBP, Log correlation pass from 4,090 ft. to 3,690 ft. Send log in for evaluation +/- 2', but perfs showing up at 4,070 ft. on log set CIBP at 4,060 ft. top of plug, good indication of plug setting, log off plug to 3,090 ft. RIH back down and tag plug at 4,060 ft ELM. POOH with E-line. Make up float shoe and float collar on 4 ft. pup jt, strap extra pipe, and 3-1/2" pups. Rig up fill up hose to fill tbg while running in hole, check float equipment (ok). Blow down surface line & secure well for night. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 g set CIBP at 4,060 ft. top of plug, CIBP pressure tested to 2300 psi before running tubing. See attached email. bjm tag plug at 4,060 ft ELM. Pooh slow due to packer drag, with 3.5 EUE tbg racking back in derrick, to 3,447 ft. BOPE and related surface equipment to 250 low and 2,500 psi hi, continue POOH f/ 348 ft. to surface lay down both packers, x/nipple, & WLEG. Rig Start Date End Date Rig 401 9/29/21 10/21/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 10/21/2021 - Thursday MITIIA 3-1/2 x 9-5/8 annulus to 1500 psi passed. Witnessed by Jeff Jones. 10/14/2021 - Thursday E-line crew arrive at facility and obtains permit. MIRU e-line and pressure test to 250 psi low / 2,500 psi high. RIH with 5' 2- 1/8" Shogun Spiral strip gun and correlate to open hole logs. Perforate Sterling P3_A10 from 4,000'-4,005'. POOH all shots fired. Attempt to RIH with 5' 2-1/8" Shogun Spiral but unable to get across tree. Troubleshoot valves, middle master is only closing 16 out of 21.5 turns and does not hold pressure. Swing lubricator around and wiggled through. RIH with 5' 2-1/8" Shogun Spiral strip gun and correlate to open hole logs. Perforate Sterling P3_A10 from 3,992'-3997'. POOH all shots fired. RIH with 9' 2-1/8" Shogun Spiral strip gun and correlate to open hole logs. Perforate Sterling P3_A10 from 3,967'-3,976'. POOH all shots fired. RDMO e-line. 10/06/2021 - Wednesday E-line crew arrives at facility and obtains permit. MIRU e-line unit and mast. Surface check CBL tools and RIH with same. Perform free pipe pass. Run log from PBTD @ 4,050' to surface. MIRU e-line. 10/04/2021 - Monday PJSM bleed pressure off tbg and annulus, Rig up to test tbg to 1,500 psi, for 30 minutes on chart, good test, rig down test equipment. L/down landing joint, set TWC, REMOVE rig floor and stairs, nipple down 13-5/8" bop's and load on trailer. Nipple up tree, test void to 5,000 psi, (good test) pull TWC & secure well. Continue rigging down & loading support equipment on trailers, scope down and lay over derrick and move carrier off well, move base beam. 10/03/2021 - Sunday PJSM TIH with 4.5" shoe, 4' pump, & 4.5 float collar, 128 joints of 3.5 9.3 #, L-80, EUE tbg f/ surface to 4,050 ft. tagging CIBP at 4,050 ft. dpm with 4k. Lay out (2) jts 3.5" tbg, space out. 10', 8', 1.35 hanger pup jt. m/up landing jt, m/up hanger land same with 32k on hanger, RIH lock down pins with end of tbg at 4,048 ft. Held PJSM with cementers, pump 5 bbls of water, test lines to 250. 4,000 hi. open up, pump 10 bbls water spacer, mix and pump 320 sxs type 1-1/2 cmt, 70 bbls slurry mixed at 15.3 ppg with 1.235 yld + gps d-air + .2 gps MMCR . pump at 3.5 bpm at 1,100 psi while holding 1,000 psi on annulus, shut down pump while holding 1,075 psi on annulus, load and drop wiper plug, displace wiper plug with 35.4 bbls 8.4 ppg water at 4.0. bpm at 520 psi while holding 1000 psi on annulus, at 30 bbls pump pressure at 1,469 psi, slow rate to 2 bpm to pump plug continue pumping at 2.0 bpm bump plug at 35.4 bbls pump final pressure 1,500 psi pressure increased to 2,400 psi shut in tbg with 2,400 psi tbg & 800 psi on annulus, cmt in place at 13.32 hrs. with full returns during the job. Blow down lines and rig down cementers. Waiting on cmt, start rigging down hoses, pits, pump out pits and blow down pump secure well for night. e master is only closing 16 out of 21.5 turns and does not hold pressure. mix and pump 320 sxs type 1-1/2 cmt, 70 bbls slurry mixed at 15.3 ppg with 1.235 yld + Surface check CBL tools a Rig up to test tbg to 1,500 psi, for 30 minutes on chart, good test, with full returns during the job. Run log from PBTD @ 4,050' to surface. Perforate Sterling P3_A10 from 4,000'-4,005'. Perforate Sterling P3_A10 from 3,967'-3,976' Perforate Sterling P3_A10 from 3,992'-3997' bump plug at 35.4 bbls PJSM TIH with 4.5" shoe, 4' pump, & 4.5 float collar, 128 joints of 3.5 9.3 #, L-80, EUE tbg f/ surface to 4,050 ft. MITIIA 3-1/2 x 9-5/8 annulus to 1500 psi passed. Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 11/10/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KDU 09 (PTD 208-106) Gamma Gun Correlation Log 11/14/2021 Please include current contact information if different from above. Received By: 11/10/2021 37' (6HW By Abby Bell at 2:04 pm, Nov 10, 2021 Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 11/09/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KDU 9 (PTD 208-106) CBL 10/06/2021 Please include current contact information if different from above. 37' (6HW Received By: 11/09/2021 By Abby Bell at 4:48 pm, Nov 09, 2021 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov November 3, 2021 Mr. Taylor Wellman Kenai Operations Manager Hilcorp Alaska LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Docket Number: OTH-20-031 Investigation Closeout Hilcorp Rig 401 BOPE Failure Kenai Deep Unit 9 (PTD 2081060) Dear Mr. Wellman: This letter serves to close out the investigation initiated in response to the April 18, 2020 failure of a variable bore ram (VBR) on Hilcorp Rig 401 located at Kenai Deep Unit 9 during testing of the blowout prevention (BOP) equipment. That test was witnessed by an Alaska Oil and Gas Conservation Commission (AOGCC) Inspector who gathered preliminary information about the incident. AOGCC letter dated April 21, 2020 requested an investigation to determine the root causes and contributing factors of the catastrophic failure of VBR, and to determine the potential for similar failure of VBR used in other BOP stacks on Hilcorp-operated rigs in Alaska. AOGCC also required a third-party metallurgical study and submittal of the study report. An AOGCC Inspector was present for visual inspections of location and testing of BOPE as part of the failure investigation on May 7-8 and 13-14. Hilcorp provided the requested information by letter dated June 3, 2020 along with the initial findings of the in-progress metallurgical study. As part of the investigation, Hilcorp removed the accumulator from Rig 401 due to poor performance. The accumulator was used for post-incident testing of the Integrated Equipment Ltd BOP stack at Yellow Jacket Oilfield Service Company’s Nikiski facility. An air leak in the accumulator control system was deemed a potential contributing factor to the VBR failure through the BOP stack testing at the Yellow Jacket facility. As a precaution Hilcorp evaluated three accumulator units that are the same design as the accumulator unit used on Rig 401. Hilcorp’s final information submittal dated June 25, 2020 included an overview of the investigative findings and the Northern Iron Engineering “VBR Ram Assembly Metallurgical Failure Investigation Final Report”. AOGCC and Hilcorp met on July 13, 2020 to discuss the metallurgical study results, root cause of this incident, Hilcorp’s response to the findings, and the process for returning the Integrated BOP stack to service. The metallurgical failure study report provided a definitive root cause for the VBR incident: brittle failure due to out-of-spec metal Docket Number: OTH 20-031 Closeout November 3, 2021 Page 2 of 2 used in the manufacturing process. In response, Hilcorp removed all the VBR’s that were provided by the manufacturer of the failed VBR and replaced with a VBR from an alternate manufacturer. Hilcorp’s thorough and cooperative efforts in the conduct of this investigation were appreciated. AOGCC considers this investigation closed. Sincerely, Jeremy M. Price Chair, Commissioner Jeremy Price Digitally signed by Jeremy Price Date: 2021.11.03 10:54:35 -08'00' Appendix D CONFIDENTIAL held in secure storage MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission To: Jim Regg -r-)DATE: Wednesday, November 3, 2021 . j_ P.I. Supervisor I�C 11(4 I Z4jZ.1 SUBJECT: Mechanical Integrity Tests Hilcorp Alaska, LLC FROM: Jeff Jones KENAI DEEP UNIT 9 Petroleum Inspector Src: Inspector Reviewed By: P.I. Supry JP -f NON -CONFIDENTIAL Comm Well Name KENAI DEEP UNIT 9 API Well Number 50-133-20578-00-00 Inspector Name: Jeff Jones Permit Number: 208-106-0 Inspection Date: 10/21/2021 Insp Num: mitJJ21 1102090412 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well 9 Type jn� N ",TVD 3323 ' Tubing 42 43 43 42 ' PTD 2081060 Type Test l SPT (Test psi 1500 ✓ IA 727 1657 — 1622 - 1595 BBL Pumped: 1.3 IBBL Returned: 1.3 OA 95 95 95 - 95 Interval OTHER P/F P Notes: MIT -IA per Sundry # 321-494. One well inspected, no exceptions noted. C'qackcLce Wednesday, November 3, 2021 Page 1 of 1 1 Guhl, Meredith D (CED) From:McLellan, Bryan J (CED) Sent:Monday, October 11, 2021 2:35 PM To:Jacob Flora Subject:RE: KDU 9 CBL 10-6-2021 (KDU-09 AOGCC 10-403 321-494 PTD 208-106 Approved 09-25-21) Jake, Since you have good cement from 3010‐3060’ MD in the 3‐1/2” x 9‐5/8” annulus, and good cement outside the 9‐5/8” casing above the proposed perf interval, and since all proposed perfs are in the same pool, you have approval to perforate the zones listed in Sundry 321‐494. You will still need to verify the cement packer integrity with an MITIA within 10 days of return to production after perforating, per the condition in this sundry. Regards Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250‐9193 From: Jacob Flora <Jake.Flora@hilcorp.com> Sent: Wednesday, October 6, 2021 2:45 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Subject: KDU 9 CBL 10‐6‐2021 (KDU‐09 AOGCC 10‐403 321‐494 PTD 208‐106 Approved 09‐25‐21) Hi Bryan, Attached is the CBL we ran post 3‐1/2 cement job on KDU‐09 ran 36hrs . I want to note that this is the second CBL we’ve run on this well. The first one we ran yesterday 24 hrs after the cement job. Both logs look the same and not great‐ the Planned TOC is visible at 3000’, however below this it looks ratty even though we know volumetrically it’s in cement. We ran today’s log with a different truck/tool hoping for a different result‐ both logs appear the same. I’ve reached out to Halliburton and they pumped an identical slurry mix to the recent KBU 14‐06Y IA job, which showed perfect cement. The log does show better bond across the target intervals from 3893’‐4005’. Based on this we would like to proceed with the testing. Please advise if acceptable, I’ve also attached the CBL of the 9‐5/8 casing which shows good bond with the reservoir across the zones of interest. Thanks, Jake 2 From: Roy Wright <rwright@yjosllc.com> Sent: Wednesday, October 6, 2021 12:25 PM To: Jacob Flora <Jake.Flora@hilcorp.com>; Benjamin Siks <bsiks@hilcorp.com>; Trudi Hallett <thallett@hilcorp.com> Subject: [EXTERNAL] KDU 9 CBL 10‐6‐2021 Here’s the CBL from 10‐6‐2021, Roy Wright SR Wireline Engineer Mobile. 907.690.4612 Web. www.yjosllc.com Addr. 53341-B Sandy Lane Kenai, Alaska 99611 This message contains confidential information and is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system. E-mail transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of this message, which arise as a result of e-mail transmission. If verification is Required please request a hard-copy version. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend 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? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 9,850'4,790' Casing Collapse Structural Conductor 1,500 psi Surface 1,950 psi Intermediate 3,090 psi Liner #1 5,410psi Liner #2 7,500psi 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 Commission Representative: GINJ Op Shutdown Abandoned Taylor Welman 777-8449 Contact Name: Jake Flora Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE COMMISSION Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng 3,980'500 4280' 4725, 9108, 9462 Tubing Grade: 9.3# / N-80 Tubing MD (ft): 4,064 8,955'8,642'7,240psi COMMISSION USE ONLY Authorized Name: 8,430psi jake.flora@hilcorp.com Tubing Size: 3-1/2"Perforation Depth TVD (ft): 3629MD/3323TVD 3844MD/3534TVD 4940MD/4607TVD 8691MD/8378TVD; N/A N/A PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 A-028142 208-106 3,476' 7" 3800 Centerpoint Drive, Ste 1400, Anchorage, AK 99503 50-133-20578-00-00 Hilcorp Alaska, lLC Length Size Kenai Deep Unit (KDU) 9CO 510A Kenai Gas Field - Sterling 4 Gas Pool 9,513' 4,280' 9.3# / L-80 TVD Burst 5,690 MD 5,750 psi 3,060 psi 9-5/8"5,668' 1,675'3,450 psi 139' 1,608' 5,355' 139' 1,675' 5,668' See Attached Schematic 4-1/2" Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. 9,532' (3) DHL Pkrs, ZXP Liner Pkr; N/A Perforation Depth MD (ft): See Attached Schematic 20" 13-3/8" 139' Authorized Signature: 9/22/2021 9,845'1,154' 3-1/2" Perforate Repair Wepair Well Exploratory Stratigraphic Development Service BOP TestMechanical Integrity Test Location Clearance No No Wellbore schematic Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Meredith Guhl at 3:56 pm, Sep 21, 2021 321-494 ggDigitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.09.21 15:47:09 -08'00' Taylor Wellman (2143) (isolated pool) DSR-9/21/21 X Variance to 20 AAC 25.112(c)(1)(E) is approved on the basis that the proposed shoe track + annular cement will be equally effective. SFD 9/24/2021 Perforate New Pool CO 510B SFD 9/24/2021 BOP test to 2500 psi SFD 9/24/2021 MITIA to 1500 psi required within 10 days of returning to production. Provide AOGCC 24 hrs notice to witness. 10-404 BJM 9/24/21 X Sterling Gas Pool 3 (new pool) 9/22/2021 dts 9/24/2021 JLC 9/24/2021 Jeremy Price Digitally signed by Jeremy Price Date: 2021.09.24 16:24:59 -08'00' RBDMS HEW 9/27/2021 Well Prognosis Well: KDU-09 Date: 09/17/21 Well Name:KDU 09 API Number:50-133-20578-00-00 Current Status:SI Leg:N/A Estimated Start Date:9/22/21 Rig:401 Reg. Approval Req’d?10-403 Sundry Number: Regulatory Contact:Donna Ambruz 777-8305 Permit to Drill Number:208-106 First Call Engineer:Jake Flora (907) 777-8442 (O)(720) 988-5375 (C) Second Call Engineer:Todd Sidoti (907) 777-8420 (O)(985) 867-0665 (C) Maximum Expected BHP: ~ 500 psi @ 3,582’ TVD (Based on offset RFT data) Max. Potential Surface Pressure: ~ 500 psi (Based on BHP to surface) Well Status KDU 09 has been shut in since February 2021. 05/01/2020 3-1/2” x 9-5/8” annulus MITIA to 2000psi PASSED after running completion Brief Well Summary: KDU-09 was drilled and completed in 2008 targeting the Deep Tyonek formation. The first sand shot was the Tyonek D3C which is a super strong water drive sand that has been very difficult to produce. It came online making 10 MMCFD with a steep decline. The well was recompleted with 3-1/2” tubing and 5 Upper Tyonek sands were shot. These produced <50MCF, and filled the 7” with at least 350’ of fill. The next 4 Upper Beluga intervals up were added, and the well came on at 1MM+. A week later the well had fallen to 700 mcfd, and the final uppermost interval was perf’d, bringing the well back to 950 mcfd. 3 weeks later the well had declined to 350 mcfd, and on 6/19/20 the well died completelyKDU-09 was recompleted and the Sterling B5B was perforated on 12/10/2020. It came online making almost 4 MMCFD and cum’d 23 MMCF before watering out 2 months later. The B1 and B2 sands were perforated but would not sustain flow. KUD-09 has cum’d a total of 5 BCF since it was drilled in 2008. Objective: The purpose of this rig 401 workover is to pull current 3-1/2” completion, isolate the existing open perfs, run and cement 3-1/2” tubing up above all hydrocarbon bearing zones, and recomplete in the Sterling formation(s). Procedure: 1. MIRU 401. 2. Notify AOGCC 24hrs in advance of BOP test. 3. Bullhead tubing with water, Set BPV, ND Tree. 4. NU BOP and test to 250 psi low & 2,500 psi high, annular to 250 psi low & 2,000 psi high. Record accumulator pre-charge pressures and chart tests. a. Perform Test. b. Test rams on 3-1/2” test joints. c.Submit completed form 10-424 to AOGCC within 5 days of BOPE test. 5.Pull BPV 6. POOH with 3-1/2” completion, (both packers have 58k shear release) racking back tubing for reuse per below. 7. RU E-line. Sterling Gas Pool 3 and recomplete in the Sterling formation( , isolate the existing open perfs, Sterling Gas Pool 4 SFD 9/24/2021 Well Prognosis Well: KDU-09 Date: 09/17/21 x Set 9-5/8” CIBP over open perfs at 4095’. A variance to 20 AAC 25.112(c)(1)(E) requiring 25’ cement over a CIBP is requested due to the close proximity of the perforations being plugged and those being added. Additionally, a 20’ shoe track is planned that will provide cement between the CIBP and the new 3-1/2” monobore. 8. MIT CIBP to 1500 psi. 9. Run 3-1/2” completion to cement top, lightly tag, land 5’ off of plug at 4080’. Land and test hanger. a.Completion to have float collar 20’ off bottom b. Centralizers across pay zones ~3800’ - TD 10. MU floor valve to landing joint, RU cement truck. 11. Mix and pump 69 bbls of 15.3 ppg cement, drop wiper plug. (planned 3-1/2 x 5-1/2 TOC is 3000’). Choke returns thru annulus valve while pumping, no cement is being returned to surface. 12. Displace plug to landing collar with water (~35 bbls). Close floor valve, trap displacement pressure. 13. WOC overnight. 14. MIT tubing to 1500 psi. 15. Bleed off pressure, ND landing joint, ND BOP, NU tree, RDMO Rig 401. 16. RU E-line, log CBL, submit results to AOGCC. Coil Tubing Milling Contingency (if cement is left too high in 3-1/2” tubing) a. MIRU CTU, 24hr notice for BOP test. b. Conduct BOP test 250psi low, 3000psi high. c. RIH w milling BHA, mill out cement to ~10’ above jet cut depth. d. Blow down well with nitrogen, trap pressure for perforating, RDMO CTU. 17. MITIA to 1500 psi for 30 minutes. 18. Swab well down. Pressure up with well gas. 19. Perforate the below sands from the bottom up. Sand Top MD Base MD Top TVD Base TVD Total Ftg P3_A8 ±3,893’ ±3,898’ ±3,582’ ±3,587’ ±5’ P3_A9 ±3,922’ ±3,927’ ±3,611’ ±3,616’ ±5’ P3_A10 ±3,967’ ±3,976’ ±3,655’ ±3,664’ ±9’ P3_A10 ±3,992’ ±3,997’ ±3,679’ ±3,684’ ±5’ P3_A10 ±4,000’ ±4,005’ ±3,687’ ±3,692’ ±5’ 20. RD E-Line. a. All sands are in Pool 3, if plugs are necessary to isolate wet perforations cement tops are not required. Nitrogen (Contingency) 1. If Nitrogen is required to pressure up well prior to perforating: 2. MIRU Nitrogen Unit, review Nitrogen SOP, pressure well to desired perforating pressure. E-line Procedure (Contingency) MITIA to 1500 psi required within 10 days of returning to production. bjm Variance approved. Shoe track and annular cement is equally effective. bjm 9-5/8" P3_ All sands are in Pool 3, Well Prognosis Well: KDU-09 Date: 09/17/21 1. If any zone produces sand and/or water or needs isolated: 2. MIRU E-Line and pressure control equipment. PT lubricator to 250 psi Low / 2,500 psi High. 3. RIH and set plug above the perforations. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic 3. Rig 401 BOP Schematic 4. Nitrogen SOP 5. RWO Sundry Revision Change Form Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status 5 S4 B1A 4,105' 4,140' 3,792' 3,827' 35' 5/17/2021 Open S4 B2A 4,201' 4,211' 3,792' 3,827' 10' 4/27/2021 Open B5B 4,548’ 4,558’ 4,236' 4,245' 10’ 12/10/2020 Isolated UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: PERFORATION DETAIL D2 21'66'10/23/2008 Donna Ambruz Last Revision Date:June 4, 2021 Kenai Deep Unit #9 Kenai Gas Field, A-028142 500'3º / 100 ft starting @ 500' - 1,600'0º Alaska 3,792' - 9,195'4,105' - 9,508' Kenai Peninsula Borough USA Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DHL Ret Pkr @ 3,629' 12/5/20 9-5/8" x 4-1/2" DLH Ret Pkr @ 3,844' 12/5/20 X-Nipple @ 4,053'' MD 12/5/20 EOT/WLEG @ 4,064' 12/5/20 CIBP @ 4,760' MD w/ 35' cement - TOC @ 4,725' MD 12/4/20 9-5/8" x 4-1/2" DHL Liner Packer @ 4,940' MD 4/30/20 Tubing String - 3.5", EOT @ 5,690' MD 4/30/20 *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) Cement Plug @ 9,108' 4/15/20 CIBP w/ cement - TOC @ 9,462' *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #:208-1060 API #:50-133-20578-00-00 Prop. Des:A - 028142 KB elevation:87' (21' AGL) WBS #: Latitude:60°27' 32.71" N Longitude:151°14' 50.27" W X:274,850.67 Y:2,361,856.78 Spud:7/14/2008 TD:8/5/2008 Rig Released:8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 4,286' MD 3,973' TVD Tubing 3-1/2" L-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 4,064'TVD Surface 3,751' 3-1/2" N-80 9.3 ppf EUE (2.992" ID) Top Bottom MD 4,770' 5,690' TVD 4,457' 5,377' SCHEMATIC D2 D3b 320’ of sand plus 10’ of cmt.TOC = 9,108’ 4/15/20 LB 1B TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,940' 4/30/20 Btm of Tbg @ 5,690' 4/30/20 UB7 / UB 7A UB 8 7" TOC @ 5,670' per CBL (4/28/20) 9-5/8"" ToC @ 2270' per CBL (4/29/20) 9-5/8" CIBP @ 4,760' MD TOC @ 4,725' 12/4/20 3,629' 9-5/8" Ret PKR 12/5/20 3,844' 9-5/8" Ret PKR 12/5/20 B5B EOT = 4,064' 12/5/20 TOC @ 4,286' 4/8/20 S4 B1A S4 B2A S4 S4 Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status Sterling Sands ±3,893' ±4,005' ±3,582' ±3,692' Proposed TBD B1A 4,105' 4,140' 3,792' 3,827' 35' 5/17/2021 Isolated B2A 4,201' 4,211' 3,888' 3,898' 10' 4/27/2021 Isolated B5B 4,548’ 4,558’ 4,236' 4,245' 10’ 12/10/2020 Isolated UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: PERFORATION DETAIL D2 21'66'10/23/2008 Jake Flora Last Revision Date:September 17, 2021 Kenai Deep Unit #9 Kenai Gas Field, A-028142 500'3º / 100 ft starting @ 500' - 1,600' 0º Alaska 3,648' - 9,195'3,960' - 9,508' Kenai Peninsula Borough USA KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #: 208-1060 API #: 50-133-20578-00-00 Prop. Des: A - 028142 KB elevation: 87' (21' AGL) WBS #: Latitude: 60° 27' 32.71" N Longitude: 151° 14' 50.27" W X: 274,850.67 Y: 2,361,856.78 Spud: 7/14/2008 TD: 8/5/2008 Rig Released: 8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD ±4,100' MD ±3,787' TVD Tubing 3-1/2" L-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 4,064'TVD Surface 3,751' 3-1/2" N-80 9.3 ppf EUE (2.992" ID) Top Bottom MD 4,770' 5,690' TVD 4,457' 5,377' PROPOSED D2 D3b 4-1/2" Liner Top Pkr @ 8,691' 4940' 9-5/8" DHL Hydraulic Ret Pkr Btm of Tbg @ 5,690' 7" TOC @ 5,670' per CBL (4/28/20) 9-5/8"" TOC @ 2270' CBL (4/29/20) 4760' 9-5/8" CIBP w 35' cmt (12/4/20) B5B 4548' - 4558' 4286' TOC B1A 4105'-4140' B2A 4201' - 4211' Planned TOC @ ±3000' New Perfs: ~3893' - 4005' 4286' FISH DETAIL: 164' of 3-1/2" 9.3# Tbg Cmt plug 9108' (4/15/20) The picture can't be displayed.The picture can't be displayed.The picture can't be displayed.The picture can't be displayed. 13-5/8"Spherical Annular Height: 46" Weight: 12,806 13-5/8"LWS Double BOP Height: 37" Width: 93" Weight 9,900 lbs. TOP RAMS 2-7/8" TO 5-1/2" MULTI- RAMS BOTTOM RAMS BLIND RAMS 13-5/8"Mud Cross W/ 4- 1/16" outlets Height:28.5" Width 31" Dual 4-1/16" Manual Gate valves W/ DSA to 2-1/16" 4-1/16" Manual Gate valve & 4-1/16" HCR W/ DSA to 2-1/16" Full Mud Cross Assy. width w/ valves installed Width: 98.5" Weight: 2200 lbs. Kill side Choke side Height Addition for Ring Gaskets: 0" BOP Total Height: 111.5" BOP Total weight: 24,906 lbs. 13-5/8" 5m BOP Package W/ 4-1/16" Valves STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. Hilcorp Alaska, LLC Hilcorp Alaska, LLC Changes to Approved Rig Work Over Sundry Procedure Subject: Changes to Approved Sundry Procedure for Well KDU-09 (PTD 208-106) Sundry #: Any modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to the AOGCC by the rig workover (RWO) “first call” engineer. AOGCC written approval of the change is required before implementing the change. Sec Page Date Procedure Change New 403 Required? Y / N HAK Prepared By (Initials) HAK Approved By (Initials) AOGCC Written Approval Received (Person and Date) Approval: Asset Team Operations Manager Date Prepared: First Call Operations Engineer Date David Douglas Hilcorp Alaska, LLC Sr. Geotechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 777-8337 E-mail: david.douglas@hilcorp.com Please acknowledge receipt and return one copy of this transmittal or FAX to 907 564-4424 Received By: Date: Hilcorp North Slope, LLC Date: 06/22/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL FTP Folder Contents: Log Print Files and LAS Data Files: Well API # PTD # Date Log Type Logging Company KBU 11-08Y 50133205520000 205091 1/28/2021 SET PLUG Yellowjacket KBU 23-7 50133205320000 203217 12/20/2020 JET CUT Yellowjacket KBU 23-7 50133205320000 203217 1/4/2021 PERF GAMMA RAY Yellowjacket KBU 41-6 50133205550000 205141 2/8/2021 SET PLUG Yellowjacket KBU 43-07Y 50133206250000 214019 1/22/2021 PERF GAMMA RAY Yellowjacket KBU 44-06 50133204980000 200179 2/22/2021 SET PLUG - JET CUT Yellowjacket KBU 42-07RD 50133204880100 208052 5/31/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/2/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/7/2020 PERF GAMMA RAY/GPT Yellowjacket KDU 09 50133205780000 208106 11/25/2020 JET CUT Yellowjacket KDU 09 50133205780000 208106 5/17/2021 PERF / GPT Yellowjacket KTU 13-05 50133203700000 184108 1/12/2021 SET PLUG Yellowjacket KTU 24-06H 50133204900000 199073 6/19/2020 PERF Yellowjacket KTU 24-06H 50133204900000 199073 6/20/2020 GPT Yellowjacket KU 44-08 50133206940000 220068 1/15/2021 SET PLUG Yellowjacket KU 44-08 50133206940000 220068 2/4/2021 PERF GAMMA RAY/GPT Yellowjacket KU 44-08 50133206940000 220068 4/6/2021 PERF GAMMA RAY / GPT Yellowjacket Please include current contact information if different from above. 06/28/2021 Received By: 37' (6HW By Abby Bell at 12:23 pm, Jun 28, 2021 David Douglas Hilcorp Alaska, LLC Sr. Geotechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 777-8337 E-mail: david.douglas@hilcorp.com Please acknowledge receipt and return one copy of this transmittal or FAX to 907 564-4424 Received By: Date: Hilcorp North Slope, LLC Date: 06/22/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL FTP Folder Contents: Log Print Files and LAS Data Files: Well API # PTD # Date Log Type Logging Company KBU 11-08Y 50133205520000 205091 1/28/2021 SET PLUG Yellowjacket KBU 23-7 50133205320000 203217 12/20/2020 JET CUT Yellowjacket KBU 23-7 50133205320000 203217 1/4/2021 PERF GAMMA RAY Yellowjacket KBU 41-6 50133205550000 205141 2/8/2021 SET PLUG Yellowjacket KBU 43-07Y 50133206250000 214019 1/22/2021 PERF GAMMA RAY Yellowjacket KBU 44-06 50133204980000 200179 2/22/2021 SET PLUG - JET CUT Yellowjacket KBU 42-07RD 50133204880100 208052 5/31/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/2/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/7/2020 PERF GAMMA RAY/GPT Yellowjacket KDU 09 50133205780000 208106 11/25/2020 JET CUT Yellowjacket KDU 09 50133205780000 208106 5/17/2021 PERF / GPT Yellowjacket KTU 13-05 50133203700000 184108 1/12/2021 SET PLUG Yellowjacket KTU 24-06H 50133204900000 199073 6/19/2020 PERF Yellowjacket KTU 24-06H 50133204900000 199073 6/20/2020 GPT Yellowjacket KU 44-08 50133206940000 220068 1/15/2021 SET PLUG Yellowjacket KU 44-08 50133206940000 220068 2/4/2021 PERF GAMMA RAY/GPT Yellowjacket KU 44-08 50133206940000 220068 4/6/2021 PERF GAMMA RAY / GPT Yellowjacket Please include current contact information if different from above. 06/28/2021 Received By: 37' (6HW By Abby Bell at 12:23 pm, Jun 28, 2021 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: N2 Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: 4,286; 4,725; Total Depth measured 9,850 feet 9108; 9462 feet true vertical 9,513 feet 4,790 feet 3629; 3844; Effective Depth measured 4,286 feet 4,940; 8691 feet true vertical 3,973 feet 3323; 3534; feet 4607; 8378 Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic 3-1/2" 9.3# / N-80 4,064' MD 3,751' TVD Tubing (size, grade, measured and true vertical depth)3-1/2" 9.3# / L-80 5,690' MD 5,377' TVD DHL Pkrs, 3629; 3844; 4940; 3323; 3534; 4607; Packers and SSSV (type, measured and true vertical depth)ZXP Liner Pkr; N/A 8,691' MD 8,378' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ted Kramer Authorized Title:Operations Manager Contact Email: Contact Phone:777-8420 WINJ WAG 0 Water-Bbl MD 139' 1,675' 9,845' 0 Oil-Bbl measured true vertical Packer 7" 4-1/2" 8,955' 5,355' 8,642' measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Kenai Gas Field / Sterling 3, Sterling 4 Gas PoolsN/A measured TVD Tubing Pressure 420 Kenai Deep Unit (KDU) 9 N/A A-028142 5,668' Plugs Junk STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 208-106 50-133-20578-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 321-123 & 321-174 222 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 95 Authorized Signature with date: Authorized Name: 110 Casing Pressure Liner #2 1,154' 57 9,532' 0 Representative Daily Average Production or Injection Data 139' 1,675' 5,668' 3,476' Conductor Surface Intermediate Liner #1 7,500psi 5,410psi Casing Structural 20" 13-3/8" 9-5/8" Length 5,750psi 3,450psi Collapse 1,500psi 1,950psi 3,090psi tkramer@hilcorp.com Senior Engineer:Senior Res. Engineer: 8,430psi Burst 3,060psi 7,240psi 139' 1,608' t Fra O G L PG , R 6. A Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 1:16 pm, Jun 18, 2021 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.06.18 11:35:17 -08'00' Taylor Wellman (2143) RBDMS HEW 6/22/2021 SFD 6/21/2021DSR-6/21/21 SFD BJM 10/8/21 Rig Start Date End Date 4/8/21 5/18/21 04/08/2021 - Thursday Conduct job briefing and safety discussion with Schlumberger coil crew and Crane Operator. Rig up coil unit, stab coil into injector. Load 130 bbls source water into supply tank. Conduct function test and integrity pressure test of BOP to 250 psi low / 3,000 psi high for 5 minutes each per AOGCC agreement. Dress coil end, MU and pull test connector. MU stinger and nozzle assembly. Stab on with injector, pressure test lubricator. RU cementing units. Tag PBTD at 4,722'. Pick up and attempt injection test, pump away at .7 bpm, 800 psi with 45 psi wellhead pressure. Cementers flood lines, PT. Cement wet at 1645 hrs. Lay in 27.2 bbls 15.3 ppg cement per plan, chase with coil pump. Cement in place at 1805 hrs, hold 125 psi back pressure, pull above and circulate at 1.5 bpm while POH. Calc TOC 4,336'. WoC 16 hrs to 1,500 psi compressive strength. Blow down coil with Nitrogen. RD injector, leave methanol in tree to freeze protect. Secure location. 04/09/2021- Friday 04/27/2021 - Tuesday Safety meeting with crew, crane operator on pressure testing and RD. Check equipment. Mobilize in test pump, fluid pack well with methanol. Conduct pressure test against cement plug to 1,500 psi. Test is good, lost 75 psi in 30 minutes. Bleed off. RD coil unit and prepare for staging off to side of pad in prep for future ops. Install tree cap, conduct pressure test. Install well house. AK E-line arrive. Conduct JSA and approve PTW. MIRU. MU gun and PT lubricator to 250 psi low / 3,000 psi high. RIH with perf gun #1. Tied CCL into schematic for depth control. Log up and send data to Geo for correlation (add 24'). Tag at 4,286' (corrected depth). Perforate 4,201' - 4,211'. 2-3/8" Geo guns, razor charges (low swell), 5 spf, 60 deg phasing. Initial TP = 212 psi. 5 min = 214 psi. 10 min = 217 psi. 15 min = 220 psi. POOH and lay down gun. Sots fired, gun is wet. Hand over to production to test and have wireline stand-by. RDMO. 05/17/2021 - Monday Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 Tag PBTD at 4,722' Perforate 4,201' - 4,211'. Calc TOC 4,336'. W Lay in 27.2 bbls 15.3 ppg cement per plan, Conduct pressure test against cement plug to 1,500 psi. Test is good, Tag at 4,286' (corrected depth). Rig Start Date End Date 4/8/21 5/18/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 05/18/2021 - Tuesday Sign in. Mobe to location. Spot equipment. PTW and JSA. PT to 250 psi low and 2,500 psi high. TP -1,100 psi. RIH w/ 2-3/8" x 20' GEO low swell HC, 5 spf, 60 deg phase and tie into yesterdays perf correlation log. Run correlation log and send to town. Town said to subtract 4'. Subtract 4' and spot gun from 4,105' to 4,125'. Fired gun w/ 974.5 psi and got good indication it fired, After 5 min - 975 psi, 10 min - 973.5 psi and 15 min - 972 psi. POOH. All shots fired/gun was wet. Rig down lubricator and equipment, secure well and turn well over to field. Sign in. Mobe to location. PTW and JSA. Spot equipment and rig up lubricator. PT to 250 psi low and 4,000 psi high. RIH w/GPT tool, 2-3/8" x 15' HC, 5 spf, 60 deg phase and tie into OHL Las. Found fluid level at 4,070'. Ran GPT and perf correlation log to town. Told to subtract 5' off perf log and on depth. Spotted shot from 4,125' to 4,140' w/ 1,234 psi. After 5 min - 1,228 psi, 10 min - 1,227 psi and 15 min - 1,226 psi. POOH. All shots fired/Gun wet. RIH w/ 2-3/8" x 20' HC GEo, 5 spf, 60 deg phase. Tools set down at 200'. Picked right up with no wt gain. Went down harder and stop at 200'. No wt gain when we picked up. Checked top sheve and it looked good. POOH checking line and it was ok. Took gun and Gama off tool string and added two 1- 11/16" x 7' weight bars and went back in hole and set down at 200' again. Tried several times but could not get thru. POOH. laid down wt. bars. Then we pulled 300' back down thru grease tubes to eliminate wire not going thru grease tube. Called town and Foreman and discussed. We borrowed spangs and 2.75" LIB from Pollard. Will pull spangs and LIB up in lub and dump approx. barrel of diesel and chase it with LIB. Then see what we have. Pump 1-1/2 barrel of diesel and follow it with 2.75" LIB down to 175' and stop. Pick up 20' and beat down 1 time and came out of hole. There was nothing on the LIB. Sending picture of it in a few. We filled the tri-plex w/methanol mix and tie to needle valve on flange just above swab valve. Started pumping while running in hole with 2.75" GR/Junk Basket and tagged at 210'. Worked tools and pump methanol mix down to 280' and broke free. We went down 50' and pick up to make sure we could come back thru it. Then we went down to 2,030' without any trouble. POOH w/no trouble. ~3 bbl pumped total (Diesel/Methanol mix. RIH w/ 2-3/8" x 20' Geo Low swell HC, 5 spf, 60 deg phase and tie into perf log. Run correlation log and send to town. Told to add 9'. Added 9' and spotted gun from 4,105' to 4,125' w/1,144 psi on tubing. Fired gun #2 w/1,144 psi. After 5 min - 1,144, 10 min - 1,143 psi and 15 min - 1,143 psi. POOH. Gun didn't fire. Lay down lubricator and secure. spot gun from 4,105' to 4,125'. Fired gun Gun didn't fire. Spotted shot from 4,125' to 4,140' w Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status 5 S4 B1A 4,105' 4,140' 3,792' 3,827' 35' 5/17/2021 Open S4 B2A 4,201' 4,211' 3,792' 3,827' 10' 4/27/2021 Open B5B 4,548’ 4,558’ 4,236' 4,245' 10’ 12/10/2020 Isolated UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: PERFORATION DETAIL D2 21'66'10/23/2008 Donna Ambruz Last Revision Date:June 4, 2021 Kenai Deep Unit #9 Kenai Gas Field, A-028142 500'3º / 100 ft starting @ 500' - 1,600'0º Alaska 3,792' - 9,195'4,105' - 9,508' Kenai Peninsula Borough USA Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DHL Ret Pkr @ 3,629' 12/5/20 9-5/8" x 4-1/2" DLH Ret Pkr @ 3,844' 12/5/20 X-Nipple @ 4,053'' MD 12/5/20 EOT/WLEG @ 4,064' 12/5/20 CIBP @ 4,760' MD w/ 35' cement - TOC @ 4,725' MD 12/4/20 9-5/8" x 4-1/2" DHL Liner Packer @ 4,940' MD 4/30/20 Tubing String - 3.5", EOT @ 5,690' MD 4/30/20 *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) Cement Plug @ 9,108' 4/15/20 CIBP w/ cement - TOC @ 9,462' *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #:208-1060 API #:50-133-20578-00-00 Prop. Des:A - 028142 KB elevation:87' (21' AGL) WBS #: Latitude:60°27' 32.71" N Longitude:151°14' 50.27" W X:274,850.67 Y:2,361,856.78 Spud:7/14/2008 TD:8/5/2008 Rig Released:8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 4,286' MD 3,973' TVD Tubing 3-1/2" L-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 4,064'TVD Surface 3,751' 3-1/2" N-80 9.3 ppf EUE (2.992" ID) Top Bottom MD 4,770' 5,690' TVD 4,457' 5,377' SCHEMATIC D2 D3b 320’ of sand plus 10’ of cmt.TOC = 9,108’ 4/15/20 LB 1B TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,940' 4/30/20 Btm of Tbg @ 5,690' 4/30/20 UB7 / UB 7A UB 8 7" TOC @ 5,670' per CBL (4/28/20) 9-5/8"" ToC @ 2270' per CBL (4/29/20) 9-5/8" CIBP @ 4,760' MD TOC @ 4,725' 12/4/20 3,629' 9-5/8" Ret PKR 12/5/20 3,844' 9-5/8" Ret PKR 12/5/20 B5B EOT = 4,064' 12/5/20 TOC @ 4,286' 4/8/20 S4 B1A S4 B2A S4 B1A 4,105' 4,140' 3,792' 3,827' 35' 5/17/2021 Open S4 B2A 4,201' 4,211' 3,792' 3,827' 10' 4/27/2021 Open Samuel Gebert Hilcorp Alaska, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 05/10/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KDU 9 (PTD 208-106) COMPLETION RECORD 04/27/2021 Please include current contact information if different from above. PTD: 2081060 E-Set: 35112 05/11/2021 1.Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend 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? Will planned perforations require a spacing exception?Yes No 9.Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 9,850'4,790' Casing Collapse Structural Conductor 1,500 psi Surface 1,950 psi Intermediate 3,090 psi Liner #1 5,410psi Liner #2 7,500psi 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 Commission Representative: GINJ Op Shutdown Abandoned Taylor Welman 777-8449 Contact Name: Ted Kramer Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 4,412'915 4725, 9108, 9462 Tubing Grade: 9.3# / N-80 Tubing MD (ft): 4,064 8,955'8,642'7,240psi COMMISSION USE ONLY Authorized Name: 8,430psi tkramer@hilcorp.com Tubing Size: 3-1/2"Perforation Depth TVD (ft): 3629MD/3323TVD 3844MD/3534TVD 4940MD/4607TVD 8691MD/8378TVD; N/A N/A PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 A-028142 208-106 3,476'7" 3800 Centerpoint Drive, Ste 1400, Anchorage, AK 99503 50-133-20578-00-00 Hilcorp Alaska, lLC Length Size Kenai Deep Unit (KDU) 9CO 510A Kenai Gas Field -Sterling 3, Sterling Undefined Gas Pools 9,513'4,725' 9.3# / L-80 TVD Burst 5,690 MD 5,750 psi 3,060 psi 9-5/8"5,668' 1,675'3,450 psi 139' 1,608' 5,355' 139' 1,675' 5,668' See Attached Schematic 4-1/2" Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. 9,532' (3) DHL Pkrs, ZXP Liner Pkr; N/A Perforation Depth MD (ft): See Attached Schematic 20" 13-3/8" 139' Authorized Signature: 4/19/2021 9,845'1,154' 3-1/2" m n P 66 t Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 8:27 pm, Apr 08, 2021 321-174 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.04.08 15:24:12 -08'00' Taylor Wellman (2143) SFD 4/9/2021 SFD 4/9/2021 BJM 4/14/21 SFD 4/9/2021 Sterling 4 Gas Pool 10-404 X DSR-4/12/21 AOGCC witness CT BOP test unless using Schlumberger CT. BOP test pressure 3500 psi. Comm 4/15/21 dts 4/15/2021 JLC 4/15/2021 RBDMS HEW 4/15/2021 Well Prognosis Well: KDU-09 Date: 4/6/21 Well Name: KDU 09 API Number: 50-133-20578-00-00 Current Status: SI Leg: N/A Estimated Start Date: 4/19/2021 Rig: Coil / E-line Reg. Approval Req’d? 10-403 Sundry Number: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-106 First Call Engineer: Ted Kramer (907) 777-8420 (985) 867-0665 Second Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (C) Maximum Expected BHP: ~ 915 psi @ 3,888’ TVD Based on offset SI BHP Data Max. Potential Surface Pressure: ~ 526 psi Gas gradient to surface @ 0.1 psi/ft Well Status KDU 09 is currently SI due to excessive water production. Well Summary: KDU-09 was drilled and completed in 2008 targeting the Deep Tyonek formation. The first sand shot was the Tyonek D3C which is a super strong water drive sand that has been very difficult to produce. It came online making 10 MMCFD with a steep decline. It was intermittently produced in late 2009 until April 2015, with a cumulative production of 2.9 BCF. The zone was isolated and the D2 Sand was perforated. The well came online just under 3 MMCFD and has cum’d just over 1 BCF of gas and 80 MBW. KDU-09 was making about 250 MCFD a few bbls of water when the well was worked over to recomplete to the upper Tyonek and Beluga formation in April 2020. The RWO pulled the existing tubing, exposing all the 7” intermediate string. Before new tubing was re-ran, cement logs and PNL’s were run over all uphole pay. The well was recompleted with 3-1/2” tubing and 5 Upper Tyonek sands were shot. These produced <50MCF, and filled the 7” with at least 350’ of fill. The next 4 Upper Beluga intervals up were added, and the well came on at 1MM+. A week later the well had fallen to 700 mcfd, and the final uppermost interval was perf’d, bringing the well back to 950 mcfd. 3 weeks later the well had declined to 350 mcfd, and on 6/19/20 the well died completely. Subsequent drifts on 6/22 found fill at ~4800’, almost 200’ above all open perfs. Plans to remediate the well in the current pool have been thoroughly worked and decided to abandon and thus moved uphole to the Sterling Pool. KDU-09 was recompleted and the Sterling B5B was perforated on 12/10/2020. It came online making almost 4 MMCFD and cum’d 23 MMCF before watering out 2 months later. Objective: The objective of this Sundry is to permit the perforating of two intervals in Pool 4 (S4_B2A and S4_B1A ) prior to moving up to the A10 (Pool 3) sand which has an approved Sundry (321-123). Work to isolate the current open Sterling B5B perf interval with cement will be completed under Sundry # 321- 123. Once the Once that work is complete, Work will switch to this sundry to blow down the well and perforate the Pool 4 intervals. Coil Procedure 1. MIRU Coil. Pressure test bop stack to 3,500 psi high / 250 psi low. 2. Hook up N2 unit and pressure test lines. 3. RIH W/Coil, come on line with N2, blow down well displacing water with N2. Trapping 600 psi on wellhead. Work to isolate the current open Sterling B5B perf interval with cement will be completed under Sundry # 321- 123. Once the Once that work is complete, Work will switch to this sundry to blow down the well and perforate the Pool 4 intervals. Note: All perfs will have been plugged per Sundry 321-123 before this operation begins. SFD 4/9/2021 Commingling of Pools 4 and 3 is not allowed. See item 6d on next page. e perforating of two intervals in Pool 4 ( and ) prior to(S4_B2A S4_B1A moving up to the A10 (Pool 3) s Notify AOGCC for BOP Test witness unless using Schlumberger. BJM Well Prognosis Well: KDU-09 Date: 4/6/21 4. RDMO coil unit. Note: Hilcorp may opt to use capillary tubing and N2 to remove water from This well instead of coil tubing. E-line Procedure 5. MIRU E-line. Pressure test lubricator to 3,000 psi. 6. Perforate the following Pool 4 sand intervals from bottom to top. Proposed Perf Adds: FORMATION Sand MD TOP MD Base TVD Top TVD Base Total Ftg Comments Sterling Pool 3 A10 ±3960’ ±4000’ ±3,648’ ±3,688’ 40’ Sundry 321-123 Sterling Pool 4 S4_B1A ±4,105’ ±4,140’ ±3,792 ±3,828 35’ Sterling Pool 4 S4_B2A ±4,201’ ±4,211 ±3,888’ ±3,898 10’ a. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Geologist, Reservoir Engineer, and Operations Engineer for confirmation (Ben Siks, Trudi Hallett, Ted Kramer- respectfully) b. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record a tubing Surface pressure before each run and after each gun firing of 5, 10, 15 min reading intervals. c. Turn over to Production to test. d. The Sterling Sands in pools 3 and 4 are governed by Conservation Order 510A. The A10 sands are in pool 3, the S4_B2A and S4_B1A are in Pool 4. Pool #3 and Pool #4 cannot be comingled under CO 510A. Therefore a plug must be set between Pools 3 and 4 prior to the A10 being perforated. e. Sands will need to be fully abandoned before moving up-hole from Pool 4 to Pool #3. Coil Procedure (to abandon the Pool 4 Sands if Unproductive) 7. MIRU Coil Tubing Unit. Pressure test bop stack to 3,500 psi high / 250 psi low. 8. PU RIH W/coil tubing open ended to TOC @ 4,448’ (+/-). 9. RU Cementers and pressure test lines according to vendor’s procedure. 10. Pick up on tubing and lay in 27 bbls of cement (Estimated Top of Cement = 4,100’ (+/-). 11. PU on coil and reverse out to clean up coil. Pressure up on well to 500 psi to pack cement. 12. POOH W/ coil. WOC. 13. MIRU E-line. Pressure test lubricator to 3,000 psi. Perforate the A10 sand on Sundry 321-123. 14. Turn well over to production. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic 3. Coil BOP 4. Standard Nitrogen Procedure. Pool #3 and Pool #4 cannot bep,__ comingled under CO 510A. Therefore a plug must be set between Pools 3 and 4 prior to theg A10 being perforated. Perforate the following Pool 4 sand intervals from bottom to top. Sands will need to be fully abandoned before moving up-hole from Pool 4 to Pool #3. gp Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status B5B 4,548’ 4,558’ 4,236' 4,245' 10’ 12/10/2020 Open UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: 500'3º / 100 ft starting @ 500' - 1,600'0º Alaska 4,236' - 9,195'4,548' - 9,508' Kenai Peninsula Borough USA PERFORATION DETAIL D2 21'66'10/23/2008 Donna Ambruz Last Revision Date:March 5, 2021 Kenai Deep Unit #9 Kenai Gas Field, A-028142 Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DHL Ret Pkr @ 3,629' 12/5/20 9-5/8" x 4-1/2" DLH Ret Pkr @ 3,844' 12/5/20 X-Nipple @ 4,053'' MD 12/5/20 EOT/WLEG @ 4,064' 12/5/20 CIBP @ 4,760' MD w/ 35' cement - TOC @ 4,725' MD 12/4/20 9-5/8" x 4-1/2" DHL Liner Packer @ 4,940' MD 4/30/20 Tubing String - 3.5", EOT @ 5,690' MD 4/30/20 *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) Cement Plug @ 9,108' 4/15/20 CIBP w/ cement - TOC @ 9,462' *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #:208-1060 API #:50-133-20578-00-00 Prop. Des:A - 028142 KB elevation:87' (21' AGL) WBS #: Latitude:60°27' 32.71" N Longitude:151°14' 50.27" W X:274,850.67 Y:2,361,856.78 Spud:7/14/2008 TD:8/5/2008 Rig Released:8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 4,725' MD 4,412' TVD Tubing 3-1/2" L-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 4,064'TVD Surface 3,751' 3-1/2" N-80 9.3 ppf EUE (2.992" ID) Top Bottom MD 4,770' 5,690' TVD 4,457' 5,377' SCHEMATIC D2 D3b 320’ of sand plus 10’ of cmt.TOC = 9,108’ 4/15/20 LB 1B TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,940' 4/30/20 Btm of Tbg @ 5,690' 4/30/20 UB7 / UB 7A UB 8 7" ToC @ 5,670' per CBL (4/28/20) 9-5/8"" ToC @ 2270' per CBL (4/29/20) 9-5/8" CIBP @ 4,760' MD TOC @ 4,725' 12/4/20 3,629' 9-5/8" Ret PKR 12/5/20 3,844' 9-5/8" Ret PKR 12/5/20 B5B Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status S3 A-10 ±3,960' ±4,000' ±3,648' ±3,688' ±40' 321-123 TBD S4 B1A ±4,105' ±4,140' ±3,792' ±3,827' ±35' Proposed TBD S4 B2A ±4,201' ±4,211' ±3,888' ±3,898' ±10' Proposed TBD B5B 4,548’ 4,558’ 4,236' 4,245' 10’ 12/10/2020 Isolated UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: 500'3º / 100 ft starting @ 500' - 1,600'0º Alaska 4,236' - 9,195'4,548' - 9,508' Kenai Peninsula Borough USA PERFORATION DETAIL 21'66'10/23/2008 Donna Ambruz Last Revision Date:April 5, 2021 Kenai Deep Unit #9 Kenai Gas Field, A-028142 D2 Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DHL Ret Pkr @ 3,629' 12/5/20 9-5/8" x 4-1/2" DLH Ret Pkr @ 3,844' 12/5/20 X-Nipple @ 4,053'' MD 12/5/20 EOT/WLEG @ 4,064' 12/5/20 CIBP @ 4,760' MD w/ 35' cement - TOC @ 4,725' MD 12/4/20 9-5/8" x 4-1/2" DHL Liner Packer @ 4,940' MD 4/30/20 Tubing String - 3.5", EOT @ 5,690' MD 4/30/20 *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) Cement Plug @ 9,108' 4/15/20 CIBP w/ cement - TOC @ 9,462' *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #:208-1060 API #:50-133-20578-00-00 Prop. Des:A - 028142 KB elevation:87' (21' AGL) WBS #: Latitude:60°27' 32.71" N Longitude:151°14' 50.27" W X:274,850.67 Y:2,361,856.78 Spud:7/14/2008 TD:8/5/2008 Rig Released:8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 4,725' MD 4,412' TVD Tubing 3-1/2" L-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 4,064'TVD Surface 3,751' 3-1/2" N-80 9.3 ppf EUE (2.992" ID) Top Bottom MD 4,770' 5,690' TVD 4,457' 5,377' PROPOSED SCHEMATIC D2 D3b 320’ of sand plus 10’ of cmt.TOC = 9,108’ 4/15/20 LB 1B TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,940' 4/30/20 Btm of Tbg @ 5,690' 4/30/20 UB7 / UB 7A UB 8 7" ToC @ 5,670' per CBL (4/28/20) 9-5/8"" ToC @ 2270' per CBL (4/29/20) 9-5/8" CIBP @ 4,760' MD TOC @ 4,725' 12/4/20 3,629' 9-5/8" Ret PKR 12/5/20 3,844' 9-5/8" Ret PKR 12/5/20 B5B S3 A10 Contingency: TOC @ ~ 4,100' S4 B1A S4 B2A STANDARD WELL PROCEDURE NITROGEN OPERATIONS 09/23/2016 FINAL v-offshore Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Facility Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Nitrogen Tank. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure supplier has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Tank. 1.Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend 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? Will planned perforations require a spacing exception?Yes No 9.Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 9,850'4,790' Casing Collapse Structural Conductor 1,500 psi Surface 1,950 psi Intermediate 3,090 psi Liner #1 5,410psi Liner #2 7,500psi 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 Commission Representative: GINJ Op Shutdown Abandoned Taylor Welman 777-8449 Contact Name: Ted Kramer Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 20" 13-3/8" 139' Authorized Signature: 3/23/2021 9,845'1,154' 3-1/2" 1,675' 5,668' See Attached Schematic 4-1/2" Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. 9,532' (3) DHL Pkrs, ZXP Liner Pkr; N/A Perforation Depth MD (ft): See Attached Schematic 5,750 psi 3,060 psi 9-5/8"5,668' 1,675'3,450 psi 139' 1,608' 5,355' 139' 9,513'4,725' 9.3# / L-80 TVD Burst 5,690 MD 3,476'7" 3800 Centerpoint Drive, Ste 1400, Anchorage, AK 99503 50-133-20578-00-00 Hilcorp Alaska, lLC Length Size Kenai Deep Unit (KDU) 9CO 510A Kenai Gads Field -Sterling 3, Sterling Undefined Gas Pools PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 A-028142 208-106 COMMISSION USE ONLY Authorized Name: 8,430psi tkramer@hilcorp.com Tubing Size: 3-1/2"Perforation Depth TVD (ft): 3629MD/3323TVD 3844MD/3534TVD 4940MD/4607TVD 8691MD/8378TVD; N/A N/A 4,412'113 4725, 9108, 9462 Tubing Grade: 9.3# / N-80 Tubing MD (ft): 4,064 8,955'8,642'7,240psi m n P 66 t Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 11:41 am, Mar 11, 2021 321-123 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.03.10 15:34:18 -09'00' Taylor Wellman (2143) X SFD 3/15/2021 * Sterling Undef Gas Pool is governed by 20 AAC 25.055 10-404 BJM 3/26/21 DSR-3/11/21 SFD 3/15/2021 Plugging existing perfs and adding perfs in the Sterling Pool 3 is approved. A separate sundry will be required to Abandon Pool 3 and add perfs in the Sterling Undefined Pool. * Except that perforations shallower than the top of the Sterling 3 Gas Pool require a spacing exception under 20 AAC 25.055. SFD 3/12/2021 dts 3/26/2021 3/26/21Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2021.03.26 14:52:35 -08'00' RBDMS HEW 3/26/2021 Well Prognosis Well: KDU-09 Date: 3/8/21 Well Name: KDU 09 API Number: 50-133-20578-00-00 Current Status: SI Leg: N/A Estimated Start Date: 3/23/2021 Rig: Coil / E-line Reg. Approval Req’d? 10-403 Sundry Number: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-106 First Call Engineer: Ted Kramer (907) 777-8420 (985) 867-0665 Second Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (C) Maximum Expected BHP: ~ 478 psi @ 3,648’ TVD Based on offset RFT Data Max. Potential Surface Pressure: ~ 113 psi Gas gradient to surface @ 0.1 psi/ft Well Status KDU 09 is currently SI due to excessive water production. Well Summary: KDU-09 was drilled and completed in 2008 targeting the Deep Tyonek formation. The first sand shot was the Tyonek D3C which is a super strong water drive sand that has been very difficult to produce. It came online making 10 MMCFD with a steep decline. It was intermittently produced in late 2009 until April 2015, with a cumulative production of 2.9 BCF. The zone was isolated and the D2 Sand was perforated. The well came online just under 3 MMCFD and has cum’d just over 1 BCF of gas and 80 MBW. KDU-09 was making about 250 MCFD a few bbls of water when the well was worked over to recomplete to the upper Tyonek and Beluga formation in April 2020. The RWO pulled the existing tubing, exposing all the 7” intermediate string. Before new tubing was re-ran, cement logs and PNL’s were run over all uphole pay. The well was recompleted with 3-1/2” tubing and 5 Upper Tyonek sands were shot. These produced <50MCF, and filled the 7” with at least 350’ of fill. The next 4 Upper Beluga intervals up were added, and the well came on at 1MM+. A week later the well had fallen to 700 mcfd, and the final uppermost interval was perf’d, bringing the well back to 950 mcfd. 3 weeks later the well had declined to 350 mcfd, and on 6/19/20 the well died completely. Subsequent drifts on 6/22 found fill at ~4800’, almost 200’ above all open perfs. Plans to remediate the well in the current pool have been thoroughly worked and decided to abandon and thus moved uphole to the Sterling Pool. KDU-09 was recompleted and the Sterling B5B was perforated on 12/10/2020. It came online making almost 4 MMCFD and cum’d 23 MMCF before watering out 2 months later. Objective: The objective of this work is to isolate the current open Sterling B5B perf interval with cement. RIH with Eline and perforate the next set of proposed perforations. Coil Procedure 1. MIRU Coil Tubing Unit. Pressure test bop stack to 3,000 psi high / 250 psi low. 2. PU RIH W/coil tubing open ended to TOG @ 4,696’ (+/-). 3. RU Cementers and pressure test lines according to vendor’s procedure. 4. Pick up on tubing and lay in 20 bbls of cement (Estimated Top of Cement = 4,431’. 5. PU on coil and reverse out to clean up coil. Pressure up on well to 500 psi to pack cement. 6. POOH W/ coil. WOC. Pressure test Cement plug to 1500 psi. - BJM Tag cement plug. - BJM Notify AOGCC to witness. Ensure minimum of 100' of cement is placed above perfs per 25AAC20.112 (c)(1). Note: No Checks in CT. Well Prognosis Well: KDU-09 Date: 3/8/21 E-line Procedure 7. MIRU E-line. Pressure test lubricator to 3,000 psi. 8. Perforate the following sand intervals from bottom to top. If the A-10 zone is unsuccessful, a plug will be set in the tubing at the packer with 25’ of cement placed on top of the plug. Proposed Perf Adds to Sundry: FORMATION INTERVAL (Status) MD TOP MD Base Total Ftg Sterling Undefined A6 ±3720’ ±3775’ 55’ Sterling Pool 3 A10 ±3960’ ±4000’ 40’ a. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Geologist, Reservoir Engineer, and Operations Engineer for confirmation (Ben Siks, Trudi Hallett, Ted Kramer- respectfully) b. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record a tubing Surface pressure before each run and after each gun firing of 5, 10, 15 min reading intervals. c. The Sterling Sands are governed by Conservation Order 510A. A10 sands are in pool 3, A6 is ‘Sterling Undefined’ d. Sands will need to be fully abandoned, included cement top, before moving up-hole to a new pool. e. If the A-10 is unproductive, Hilcorp requests a waiver from 20 AAC 25.112.(c)(1)(E). The isolation plug will be placed in the packer @ 3,844’ to provide a mechanical seal. 25’ of cement will be placed on top of the plug. This distance is 116’ above the top A-10 perf. This will be done prior to perforating the A6 sand. 9. POOH. RD e-line. 10. Turn well over to production. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic * Need cement in annulus as well as in tubing to abandon Sterling 3 pool before perfing in Sterling Undefined. -BJM Seperate Sundry will be required for this. -BJM SFD 3/15/2021 BJM *Perforations shallower than the top of the Sterling 3 Gas Pool require a spacing exception under 20 AAC 25.055. Approval is granted to perforate the Sterling Pool 3. A separate Sundry is required to Abandon this pool before perforating in a different Pool. - BJM Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status B5B 4,548’ 4,558’ 4,236' 4,245' 10’ 12/10/2020 Open UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: 500'3º / 100 ft starting @ 500' - 1,600'0º Alaska 4,236' - 9,195'4,548' - 9,508' Kenai Peninsula Borough USA PERFORATION DETAIL D2 21'66'10/23/2008 Donna Ambruz Last Revision Date:March 5, 2021 Kenai Deep Unit #9 Kenai Gas Field, A-028142 Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DHL Ret Pkr @ 3,629' 12/5/20 9-5/8" x 4-1/2" DLH Ret Pkr @ 3,844' 12/5/20 X-Nipple @ 4,053'' MD 12/5/20 EOT/WLEG @ 4,064' 12/5/20 CIBP @ 4,760' MD w/ 35' cement - TOC @ 4,725' MD 12/4/20 9-5/8" x 4-1/2" DHL Liner Packer @ 4,940' MD 4/30/20 Tubing String - 3.5", EOT @ 5,690' MD 4/30/20 *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) Cement Plug @ 9,108' 4/15/20 CIBP w/ cement - TOC @ 9,462' *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #:208-1060 API #:50-133-20578-00-00 Prop. Des:A - 028142 KB elevation:87' (21' AGL) WBS #: Latitude:60°27' 32.71" N Longitude:151°14' 50.27" W X:274,850.67 Y:2,361,856.78 Spud:7/14/2008 TD:8/5/2008 Rig Released:8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 4,725' MD 4,412' TVD Tubing 3-1/2" L-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 4,064'TVD Surface 3,751' 3-1/2" N-80 9.3 ppf EUE (2.992" ID) Top Bottom MD 4,770' 5,690' TVD 4,457' 5,377' SCHEMATIC D2 D3b 320’ of sand plus 10’ of cmt.TOC = 9,108’ 4/15/20 LB 1B TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,940' 4/30/20 Btm of Tbg @ 5,690' 4/30/20 UB7 / UB 7A UB 8 7" ToC @ 5,670' per CBL (4/28/20) 9-5/8"" ToC @ 2270' per CBL (4/29/20) 9-5/8" CIBP @ 4,760' MD TOC @ 4,725' 12/4/20 3,629' 9-5/8" Ret PKR 12/5/20 3,844' 9-5/8" Ret PKR 12/5/20 B5B Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status B5B 4,548’ 4,558’ 4,236' 4,245' 10’ 12/10/2020 Isolated UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: PERFORATION DETAIL D2 21'66'10/23/2008 Donna Ambruz Last Revision Date:March 8, 2021 Kenai Deep Unit #9 Kenai Gas Field, A-028142 500'3º / 100 ft starting @ 500' - 1,600'0º Alaska 4,236' - 9,195'4,548' - 9,508' Kenai Peninsula Borough USA Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DHL Ret Pkr @ 3,629' 12/5/20 9-5/8" x 4-1/2" DLH Ret Pkr @ 3,844' 12/5/20 X-Nipple @ 4,053'' MD 12/5/20 EOT/WLEG @ 4,064' 12/5/20 CIBP @ 4,760' MD w/ 35' cement - TOC @ 4,725' MD 12/4/20 9-5/8" x 4-1/2" DHL Liner Packer @ 4,940' MD 4/30/20 Tubing String - 3.5", EOT @ 5,690' MD 4/30/20 *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) Cement Plug @ 9,108' 4/15/20 CIBP w/ cement - TOC @ 9,462' *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #:208-1060 API #:50-133-20578-00-00 Prop. Des:A - 028142 KB elevation:87' (21' AGL) WBS #: Latitude:60°27' 32.71" N Longitude:151°14' 50.27" W X:274,850.67 Y:2,361,856.78 Spud:7/14/2008 TD:8/5/2008 Rig Released:8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 4,725' MD 4,412' TVD Tubing 3-1/2" L-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 4,064'TVD Surface 3,751' 3-1/2" N-80 9.3 ppf EUE (2.992" ID) Top Bottom MD 4,770' 5,690' TVD 4,457' 5,377' PROPOSED D2 D3b320’ of sand plus 10’ of cmt.TOC = 9,108’ 4/15/20 LB 1B TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,940' 4/30/20 Btm of Tbg @ 5,690' 4/30/20 UB7 / UB 7A UB 8 7" ToC @ 5,670' per CBL (4/28/20) 9-5/8"" ToC @ 2270' per CBL (4/29/20) 9-5/8" CIBP @ 4,760' MD TOC @ 4,725' 12/4/20 3,629' 9-5/8" Ret PKR 12/5/20 3,844' 9-5/8" Ret PKR 12/5/20 A6 B5B Sands Top (MD) Btm (MD) Amt Date Status A6 ±3720’ ±3775’ 55’ TBD Proposed A10 ±3960’ ±4000’ 40’ TBD Proposed A10 25' cement on top of CIPB Perforations shallower than the top of the Sterling 3 Gas Pool require a spacing exception under 20 AAC 25.055. SFD 3/15/2021 * * STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Reviewed By: Z 7 I P.I. Sup"L< 4itle'2 BOPE Test Report for: KENAI DEEP UNIT 9 % Comm Contractor/Rig No.: Hilcorp 401 PTD#: 2081060 ' DATE: 12/3/2020 ' Inspector Bob Noble Insp Source Operator: Hilcorp Alaska, LLC Operator Rep: Harald Soule Rig Rep: Chris Hannevold Inspector Type Operation: WRKOV Sundry No: Test Pressures: Inspection No: bopRCN201203154543 Rams: Annular: Valves: MASP: Type Test: INIT 320-458 250/2500 250/2500 . 250/2500 1247 - Related Insp No: TEST DATA MISC. INSPECTIONS: MUD SYSTEM: Time/Pressure P/F System Pressure _ 3000 Visual Alarm Location Gen.: P Trip Tank NA NA - Housekeeping: P Pit Level Indicators P P ' PTD On Location P Flow Indicator NA, NA' Standing Order Posted P Meth Gas Detector P - P - Well Sign - P H2S Gas Detector P P DO. Rig - P _ MS Misc _NA NA Hazard Sec. P #4 Rams Misc NA ACCUMULATOR SYSTEM: BOP STACK: Time/Pressure P/F System Pressure _ 3000 P Pressure After Closure 1875 _ P 200 PSI Attained 39 P Full Pressure Attained 184 P " Blind Switch Covers: All Stations • P ' Nitgn. Bottles (avg): 6 (a 18_00 P ACC Misc NA FLOOR SAFTY VALVES: BOP STACK: Quantity P/F Quantity P/F Quantity Size P/F Upper Kelly 0 NA Stripper _ 0 none NA Lower Kelly 0 NA - Annular Preventer 1 13 5/8" - P , Ball Type 1 P - #1 Rams 1 Blinds P_' Inside BOP 1 P-1 #2 Rams 1 2 7/8" x 5 1/2" FP FSV Misc 0 NA #3 Rams 0 none NA #4 Rams 0 none NA #5 Rams 0 none NA #6 Rams 0-no_n-e NA Choke Ln. Valves 1 .2 1/16" P , HCR Valves 1 • 2 1/16" P Kill Line Valves 3 ' 2 1/16" P ' Check Valve 0 none NA BOP Misc 0 none NA CHOKE MANIFOLD: Quantity P/F No. Valves 8_- P Manual Chokes 2 _ - P Hydraulic Chokes 0 NA CH Misc 0 NA INSIDE REEL VALVES: (Valid for Coil Rigs Only) Quantity P/F Inside Reel Valves 0 NA Number of Failures: 1 ✓ Test Results Test Time 4.0 Remarks: Fail/Pass on the VBRs, They were cycled and passed R/T. 3 1/2" test joi9nt was used. All alarms were tested. 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: N2 Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: 4,725; Total Depth measured 9,850 feet 9108; 9462 feet true vertical 9,513 feet 4,790 feet 3629; 3844; Effective Depth measured 4,725 feet 4,940; 8691 feet true vertical 4,412 feet 3323; 3534; feet 4607; 8378 Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic 3-1/2" 9.3# / N-80 4,064' MD 3,751' TVD Tubing (size, grade, measured and true vertical depth)3-1/2" 9.3# / L-80 5,690' MD 5,377' TVD DHL Pkrs, 3629; 3844; 4940; 3323; 3534; 4607; Packers and SSSV (type, measured and true vertical depth)ZXP Liner Pkr; N/A 8,691' MD 8,378' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Jake Flora Authorized Title:Operations Manager Contact Email: Contact Phone:777-8442 jake.flora@hilcorp.com Senior Engineer:Senior Res. Engineer: 8,430psi Burst 3,060psi 7,240psi 139' 1,608' 5,750psi 3,450psi Collapse 1,500psi 1,950psi 3,090psi 7,500psi 5,410psi Casing Structural 20" 13-3/8" 9-5/8" Length 139' 1,675' 5,668' 3,476' Conductor Surface Intermediate Liner #1 Authorized Signature with date: Authorized Name: 110 Casing Pressure Liner #2 1,154' 0 9,532' 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-458 50 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 208-106 50-133-20578-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 1220 Kenai Deep Unit (KDU) 9 N/A A-028142 5,668' Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Kenai Gas Field / Sterling 5.2 Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 7" 4-1/2" 8,955' 5,355' 8,642' WINJ WAG 2,347 Water-Bbl MD 139' 1,675' 9,845' 0 t Fra O G L PG , R 6. A Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 10:37 am, Dec 18, 2020 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.12.18 09:17:32 -09'00' Taylor Wellman SFD 12/22/2020 SFD 12/22/20 RBDMS HEW 12/18/2020 N2 Pull Tubing gls 12/23/20 DSR-12/22/2020 Perforate New Pool Plug Perforations Rig Start Date End Date E-Line 11/25/20 12/10/20 12/02/2020 - Wednesday Check Well Static, suck out cellar, r/d circ lines, Pull tree cap, set BPV. N/D tree, prep wellhead, check lift threads, install test dart. N/U 13-3/8" BOPE, stack up eq. tq flanges on same, install choke & kill lines, accumulator lines, function test BOPE good. M/U 3-1/2" test jt & install, winterize cellar, r/u test eq. had leak on test pump, & electrical issue, repaired both. Flood surface eq. shell test t/ 250/2,500 good, blow down lines & secure for night. Night watch, finish winterizing rig, fuel rig, 12/03/2020 - Thursday PJSM, blow through surface lines, fluid pack surface eq. for BOPE test Test BOPE as per Hilcorp & AOGCC requirements, test witnessed by AOGCC inspector Bob Noble, had one FP on variable rams. R/D test eq, & blow down, pull BPV, r/u handling eq. BOLD, pull hanger off seat @ 35k, string moving @ 39k, R/u slips, L/D hanger & landing joint POOH standing back 3-1/2" EUE completion tubing. t/3,685' Found e-line fish, l/d single, l/d double with fish, broke stand down & recovered e-line jet cutter tool string & wire. Filled hole, secured well for night. blew down surface lines. Night watch rig, 11/25/2020 - Wednesday Yellow Jacket arrive at office and conduct JSA and approve PTW. MIRU PT lubricator to 2,000 psi. Bleed IA pressure to 0 psi. RU jumper line from adjacent well and stack out gas to tubing. Increase whp from 200 psi to 400 psi. Gas equalized, so will not increase any more. Open well and RIH with 3-1/2" jet cutter toolstring. Tag fill at 4,790'. Position jet cutter above tubing joint and cut tubing at 4,770'. WHP increased from 400 psi to 600 psi instantly and continued to climb to 750 psi. Start to POOH, but no CCL readings. Start to see CCL readings and indication tool is moving at ~ 4,400'. Continue to POOH and encounter overpulls until toolstring stops at ~ 4,100'. Bleed off all wellhead pressure. Try to pull from weak point with no success. Pull to 50% of breaking strength and did not pull free. Call for a cutter bar. Drop Kinley cutter bar with 1 hr timer to cut cable. Work cable to try and get cutter as deep as possible. Cutter fired. POOH. Started to see some kinked cable at 900'. Recovered cutter bar. Left 465' of cable in well plus 18.17' jet cutter tools string. *** Fish left in well. 465' of cable plus 18.17' long jet cutter toolstring (cable head 1' x 1.69", weight bar 7' x 1.69", CCL 1.5' x 1.69", weight bar 7' x 1.69", shock sub 1.17' x 1.69", Jet cutter 0.5' x 2.5"). RDMO. 12/01/2020 - Tuesday PJSM, Clear Pad area of snow, move well house. Lay felt & liner, spot base beam, Accumulator, prep & spot carrier to well center, spot Dragon heater, Pits, raise & scope mast, secure same, Spot compressor, air tank, fuel tank, mud pump, generator, choke house. Set seals & berm for containment. Fill pits w/150 bbls PW, fill fuel tank, run electrical lines, r/u PVT system & gas alarms, r/u remote accumulator panel, run circulating lines to well head. Fill hole staging pumps up t/3.2 BPM, took 32 BBLS to get returns 300 psi, cont. pump 1.5 tubing volume, had a dirty foam coming back, pumped a tubing volume shut down monitored till static, secured well for night. Night watch rig & monitor well. install winterization skirting r/u choke line. Fuel Eq. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 pull hanger off seat @ 35k, string moving @ 39k, Found e-line fish, l/d Tag fill at 4,790'. Position jet cutter above tubing joint and cut tubing at 4,770'. WHP increased from 400 psi to 600 psi instantly a shell test t/ 250/2,500 good, Left 465' of cable in well plus 18.17' jet cutter tools string cutter blown uphole. t Test BOPE as per Hilcorp & AOGCC requirements, test witnessed by AOGCC inspector Bob Noble, N/U 13-3/8" BOPE, FIsh in wellbore Call for a cutter bar. Drop Kinley cutter bar with 1 hr timer to cut cable. Rig Start Date End Date E-Line 11/25/20 12/10/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 12/10/2020 - Thursday Crew arrives on location. Checks in with company rep. Walks down location, fills out permit, and performs JSA. Rig up Eline unit to run perf gun. Attempt to pressure test but triplex not pumping. Grab another triplex. Triplex arrived. PT surface equipment 250 low / 3,000 high. RIH w/ 10' x 2-3/8" guns (Geo dynamic razor charges). Send log to town for depth shift. Town wants to shift +15’. Shift +15' and re-send log to town. Ben Siks verified on depth and approved to perf. Perforated 10' interval @ 4,548’ to 4,558'. (CCL to TS = 6.16’ / CCL stop depth @ 4,538.84’). Fired guns and good indication of firing. Start POOH. Pre per Initial tbg psi = 811#. Post perf psi readings = 5 min = 891# / 10 min = 900# / 15 min = 902#, OOH. Bleed off lube and confirmed all shots fired. Begin rig down. Depart location. PJSM, Cont. POOH f/3,685' stand backtotal of 4,100'in derrick, l/d 23singles & 1-cut jt. R/D handling tools, clear & prep for e- line. R/U e-line, RIH w/ JB /GR , CCL t/4,770', POOH R/U 9 5/8" CIBP, rih, tag @ 4,770', log up check for collars, set CIBP@ 4,760', pick up with running tools, clean, RIH & tag verifying set. POOH R/U 5" dump bailer, load with 37.5 gal 17ppg cmt, for each of 3 runs dumping on CIBP @ 4,760' EST TOC @ 4,725'. R/D e/line. R/U t/test plug/casing pressure up t/1,740 psi hold for 30 min on chart good, bleed down & blow down lines, secure well for night. (Note AOGCC plug MIT witness waived By inspector Jeff Jones @ 17:00 on 12-4-20). Night watch rig. 12/05/2020 - Saturday PJSM, prep to pick up completion. RIH w/ 3-1/2" 9.3# EUE 8rd tubing with 9-5/8" straddle packer assembly. Drifting tubing w/2.897" from derrick, as per running tally. t/4,050' up wt 33k, dn wt 27k. Blow down surface lines & drain stack, M/U hanger & landing jt, land same placing tail @ 4,064', RILD Drop Ball & rod assy, pressure up t/ 3,750 psi & hold for 30 min good, setting lower packer @ 3,852 & upper packer @3,629'.R/U & test 3-1/2" x 9-5/8" annulus t/1,500psi f/ 30 min good. Blow down lines & secure well for night. Nightwatch rig. start breaking down aux eq. for move. 12/06/2020 - Sunday PTSM, pull landing & breakdown, install BPV. N/D BOPE, start rig down aux eq. load onto trailers for move. N/U tree, test void t/250/5,000 15 min each good, test tree 250/5,000 good, pull TWC & secure well. Cont. break down eq. & load trailers, scope down mast & layover, move carrier & base beam, roll up liner & pick up felt. install grating on cellar. 12/04/2020 - Friday g up Eline unit to run perf gun. Att x 9-5/8" annulus t/1,500psi f/ 30 min good. R/U t/test plug/casing pressure up t/1,740 psi CIBP at 4760 ft R/U e-line, RIH w/ JB /GR , CCL t/4,770', POOH R/U 9 5/8" CIBP, rih, tag @ 4,770', log up check for collars, set CIBP@ 4,760', CIBP @ 4,760' EST TOC Perforated 10' interval @ 4,548’ to 4,558'. @ 4,725'. RC @ RIH w/3-1/2" 9.3# EUE 8rd tubing with 9-5/8" straddle packer assembly. Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status B5B 4,548’ 4,658’ 4,236' 4,245' 10’ 12/10/2020 Open UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: PERFORATION DETAIL D2 21'66'10/23/2008 Donna Ambruz Last Revision Date:December 17, 2020 Kenai Deep Unit #9 Kenai Gas Field, A-028142 500'3º / 100 ft starting @ 500' - 1,600'0º Alaska 4,236' - 9,195'4,548' - 9,508' Kenai Peninsula Borough USA Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DHL Ret Pkr @ 3,629' 12/5/20 9-5/8" x 4-1/2" DLH Ret Pkr @ 3,844' 12/5/20 X-Nipple @ 4,053'' MD 12/5/20 EOT/WLEG @ 4,064' 12/5/20 CIBP @ 4,760' MD w/ 35' cement - TOC @ 4,725' MD 12/4/20 9-5/8" x 4-1/2" DHL Liner Packer @ 4,940' MD 4/30/20 Tubing String - 3.5", EOT @ 5,690' MD 4/30/20 *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) Cement Plug @ 9,108' 4/15/20 CIBP w/ cement - TOC @ 9,462' *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #:208-1060 API #:50-133-20578-00-00 Prop. Des:A - 028142 KB elevation:87' (21' AGL) WBS #: Latitude:60°27' 32.71" N Longitude:151°14' 50.27" W X:274,850.67 Y:2,361,856.78 Spud:7/14/2008 TD:8/5/2008 Rig Released:8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 4,725' MD 4,412' TVD Tubing 3-1/2" L-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 4,064'TVD Surface 3,751' 3-1/2" N-80 9.3 ppf EUE (2.992" ID) Top Bottom MD 4,770' 5,690' TVD 4,457' 5,377' SCHEMATIC D2 D3b 320’ of sand plus 10’ of cmt.TOC = 9,108’ 4/15/20 LB 1B TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,940' 4/30/20 Btm of Tbg @ 5,690' 4/30/20 UB7 / UB 7A UB 8 7" ToC @ 5,670' per CBL (4/28/20) 9-5/8"" ToC @ 2270' per CBL (4/29/20) 9-5/8" CIBP @ 4,760' MD TOC @ 4,725' 12/4/20 3,629' 9-5/8" Ret PKR 12/5/20 3,844' 9-5/8" Ret PKR 12/5/20 B5B 4548-4558 ft 4548-4568' 9-5/8" CIBP @ 4,760' MDP9 5/8" CIBP @ 4 760' MD@, TOC @ 4,725' 12/4/20,TOC @ 4,725 12/4/20 ) B5B B5B 4,548’ 4,658’ 4,236' 4,245' 10’ 12/10/2020 Open465 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 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? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 9,850'9,720' Casing Collapse Structural Conductor 1,500 psi Surface 1,950 psi Intermediate 3,090 psi Liner #1 5,410psi Liner #2 7,500psi 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 Commission Representative: GINJ Op Shutdown Abandoned Taylor Welman 777-8449 Contact Name: Jake Flora Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 20" 13-3/8" 139' Authorized Signature: 11/1/2020 9,845'1,154' 3-1/2" 1,675' 5,668' See Attached Schematic 4-1/2" Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. 9,532' DHL Pkr, ZXP Liner Packer; N/A Perforation Depth MD (ft): See Attached Schematic 5,750 psi 3,060 psi 9-5/8"5,668' 1,675'3,450 psi 139' 1,608' 5,355' 139' 9,513' 9,108' 9.3# / L-80 TVD Burst 5,690 MD 3,476' 7" 3800 Centerpoint Drive, Ste 1400, Anchorage, AK 99503 50-133-20578-00-00 Hilcorp Alaska, lLC Length Size Kenai Deep Unit (KDU) 9CO 510A Kenai Gas Field - Beluga/Upper Tyonek Gas Pool - Tyonek Gas Pool PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 A-028142 208-106 COMMISSION USE ONLY Authorized Name: 8,430psi jake.flora@hilcorp.com Tubing Size:Perforation Depth TVD (ft): 4,940' MD/4,607' TVD; 8,691' MD/8,378' TVD; N/A, N/A 8,795' 1,247 9108; 9462 Tubing Grade: Tubing MD (ft): 8,955' 8,642' 7,240psi Perforate Repair Wepair Well Exploratory Stratigraphic Development Service BOP TestMechanical Integrity Test Location Clearance No No Wellbore schematic Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 7:50 pm, Oct 26, 2020 320-458 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.10.26 15:54:20 -08'00' Taylor Wellman 401 Pulll Tubing DSR-10/27/2020SFD 10/27/2020 Plug Perforations Sterling 3,Sterling 4,Sterling 5.1,Sterling 5.2 Gas Pools * gls 11/4/20 Perforate New Pool *2500 psi BOPE test X Spacing exception required for any perforations above pools defined in CO 510A.SFD 10/27/2020 * SFD 10/27/2020 See note, below. 10-404 X -DSR 10/27/2020 * Comm 11/4/2020 dts 11/4/2020 JLC 11/4/2020 RBDMS HEW 11/9/2020 Well Prognosis Well: KDU-09 Date: 10/20/20 Well Name: KDU 09 API Number: 50-133-20578-00-00 Current Status: SI Leg: N/A Estimated Start Date: 11/05/2020 Rig: 401 Reg. Approval Req’d? 10-403 Sundry Number: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-106 First Call Engineer: Jake Flora (907)777-8442 (O)(720)988-5375 (C) Second Call Engineer: Ted Kramer (907)777-8420 (O)(985)867-0665 (C) Maximum Expected BHP: ~ 1670 psi @ 4227’ TVD Based on offset KDDU 10, 9/22/2020 Max. Potential Surface Pressure: ~ 1247 psi Gas gradient to surface @ 0.1 psi/ft Well Status KDU 09 is currently sanded up and offline since June 2020. Top of fill tagged with bailer at 4855’ in July 2020 (note this is above the packer depth of 4940’). 07/23/2020 SL tagged top of fill at 4855’ 05/01/2020 3-1/2” x 9-5/8” annulus MIT to 2000psi PASSED after setting production packer Brief Well Summary: KDU 09 was worked over in April 2020 when the completion was pulled, logged with CBL & PNL across the up- hole pays, and a new 3.5” completion run. Multiple upper Tyonek and Lower Beluga sands were perforated seeing short rate increases followed by rapid decline and sand fill up. Objective: The purpose of this workover is to cut and pull the existing completion above the packer, abandon the existing sanded off perfs, move the completion uphole adding an additional packer, and recomplete in the Sterling formation. The completion design is a balance of keeping the tubing tail deep enough to provide unloading support for the lower zones while not interfering with future casing plugs required to abandon each pool before moving up-hole. The straddle packers will mechanically safeguard the uppermost A6 zone which can be shot thru Pre-rig Procedure 1.MITIA 2.RU E-Line, tag & confirm fill top. 3.Jet cut 3.5” tubing at ~4850’ 4.Kill well by circulating KWF thru jet cut Rig 401 Procedure 5.MIRU 401 Work over rig. 6.Ensure well is dead. Set TWC. 7.ND wellhead, NU BOP and test to 250 psi low & 2,500 psi high, annular to 250 psi low & 2,500 psi high. Record accumulator pre-charge pressures and chart tests. a.Perform Test. Cut tubing 2500 psi BOPE test ND wellhead, NU BOP and test to 250 psi low & 2,500 psi high, annular t Top of fill tagged with bailer at 4855’ in formation. recomplete in the Sterling Well Prognosis Well: KDU-09 Date: 10/20/20 b.Test rams on 3-1/2” test joint. c.Submit completed form 10-424 to AOGCC within 5 days of BOPE test. 8.Pull TWC. 9.Ensure well is dead, pump more KWF, if needed. 10.Pick up on tubing to ensure jet cut was successful. 11.POOH with 3-1/2” completion, racking back for reuse per below. 12.Give 24 hr. notice to AOGCC for upcoming plug witness opportunity. 13.RU E-line. 14.Set 9-5/8” CIBP at ~4800’ above all top of fill, tag plug to confirm set. 15.Dump bail 35’ cement on top of plug. RD E-Line. 16.MIT CIBP to 1500psi. 17.RIH with 3-1/2” completion and jewelry. 18.Space out 3-1/2” completion with upper 9-5/8” packer at ~3650’, lower 9-5/8” packer at 3850’, tubing tail at ~4100’ MD. Run X-nipple in the TT if required to set the packers. 19.Set packer per manufacturers recommendation. 20.MIT-IA to 1500 psi for 30 charted minutes to ensure packer is holding. 21.RDMO Rig 401. Post-rig Procedure 22.MIRU SL Unit. Pressure test BOP to 3,000 psi. 23.Pull B&R. Swab well down to TT. RDMO. 24.MIRU E-line. Pressure test lubricator to 3,000 psi. 25.Perforate the following sand intervals from bottom to top. If a zone is unsuccessful, sands will need to be abandoned with a plug & cement top before moving up-hole the next pool. Proposed Perf Adds to Sundry: FORMATION INTERVAL (Status) MD TOP MD Base Total Ftg Sterling Undefined A6 ±3720’ ±3775’ 55’ Sterling Pool 3 A10 ±3960’ ±4000’ 40’ Sterling Pool 3 A11 ±4030’ ±4055’ 25’ Sterling Pool 4 B1 ±4105’ ±4145’ 40’ Sterling Pool 5.1 B4 ±4300’ ±4450’ 150’ Sterling Pool 5.2 B5B ±4540’ ±4630’ 90’ a.Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to Ben Siks- Geologist and Trudi Hallett – Reservoir Engineer for confirmation b.Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record a tubing Surface pressure before each run and after each gun firing of 5, 10, 15 min reading intervals. c. The Sterling Sands are governed by Conservation Order 510A. a.B sands are in pool(s) 4, 5.1, & 5.2. b.A sands 10 & 11 are in pool 3, A6 is ‘Sterling Undefined’ d. Sands will need to be fully abandoned, included cement top, before moving up-hole to a new pool. Sterling perforations... new pool RIH with straddle completion See CO 510A for currently allowed commingling. SFD 10/27/2020 If a zone is unsuccessful, sands will need to be abandoned with a plug & cement top before moving up-hole the next pool. p, g Sands will need to be fully abandoned, included cement top, before moving up-hole to a new pool. (behind straddle) (chart 30 min ) set CIBP 4800ft Well Prognosis Well: KDU-09 Date: 10/20/20 26. POOH. RD e-line. 27. Turn well over to production. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic 3. BOP Schematic 4. RWO Sundry Revision Change Form Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: 21'66'10/23/2008 Ryan Rupert Last Revision Date: September 8, 2020 Kenai Deep Unit #9 Kenai Gas Field, A-028142 500'3º / 100 ft starting @ 500' - 1,600' 0º Alaska 9,177' - 9,195'9,490' - 9,508' Kenai Peninsula Borough USA Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DSL Liner Packer @ 4,940' MD X-Nipple @ 4,970' MD Tubing String -3.5", EOT @ 5,690' MD *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #: 208-1060 API #: 50-133-20578-00-00 Prop. Des: A - 028142 KB elevation: 87' (21' AGL) WBS #: Latitude: 60° 27' 32.71" N Longitude: 151° 14' 50.27" W X: 274,850.67 Y: 2,361,856.78 Spud: 7/14/2008 TD: 8/5/2008 Rig Released: 8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 9,108' MD 8,795' TVD Tubing 3-1/2" N-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 5,690'TVD Surface 5,377' SCHEMATIC D2 D3b 320’ of sand plus 10’ of cmt. TOC = 9,108’ 4/15/20 LB 1B TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,920' 4/30/20 X-Nipple @ 4,963' (2.801" ID) Btm of Tbg @ 5,690' 4/30/20 Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Open UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Open UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Open UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Open LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Open TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Open TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Open TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Open UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Open UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Open 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated PERFORATION DETAIL D2 UB7 / UB 7A UB 8 7" ToC @ 5670' per CBL (4/28/20) 9-5/8"" ToC @ 2270' per CBL (4/29/20) Top Fill bailed to 4855' MD on 7/23/20 (assumed full below) Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: Kenai Deep Unit #9 Kenai Gas Field, A-028142 500'3º / 100 ft starting @ 500' - 1,600' 0º Alaska 9,177' - 9,195'9,490' - 9,508' Kenai Peninsula Borough USA 21'66'10/23/2008 Trudi Hallett Last Revision Date: October 8, 2020 Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DHL Liner Packer @ 4,940' MD X-Nipple @ 4,970' MD Tubing String -3.5", EOT @ 5,690' MD *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-07 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #: 208-1060 API #: 50-133-20578-00-00 Prop. Des: A - 028142 KB elevation: 87' (21' AGL) WBS #: Latitude: 60° 27' 32.71" N Longitude: 151° 14' 50.27" W X: 274,850.67 Y: 2,361,856.78 Spud: 7/14/2008 TD: 8/5/2008 Rig Released: 8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC (8.679" ID) Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod (6.151" ID) Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 (3.958" ID) Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 9,108' MD 8,795' TVD Tubing 3-1/2" N-80 9.3 ppf EUE (2.992" ID)Top Bottom MD Surface 5,690'TVD Surface 5,377' Proposed Schematic D2 D3b 320’ of sand plus 10’ of cmt. TOC = 9,108’ 4/15/20 LB 1B TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,940' 4/30/20 Btm of Tbg @ 5,690' 4/30/20 UB7 / UB 7A UB 8 7" ToC @ 5670' per CBL (4/28/20) 9-5/8"" ToC @ 2270' per CBL (4/29/20) Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status A6 ±3720’ ±3775’ 55’ TBD Proposed A10 ±3960’ ±4000’ 40’ TBD Proposed A11 ±4030’ ±4055’ 25’ TBD Proposed B1 ±4105’ ±4145’ 40’ TBD Proposed B4 ±4300’ ±4450’ 150’ TBD Proposed B5B ±4540’ ±4630’ 90’ TBD Proposed UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Isolated UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Isolated UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Isolated UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Isolated LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Isolated TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Isolated TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Isolated TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Isolated UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Isolated UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Isolated 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated PERFORATION DETAIL D2 ~4105-4145' B1 9-5/8" CIBP w/ cement top @ ±4,900' MD ~3650' 9-5/8" Ret PKR ~3850' 9-5/8" Ret PKR ~4300-4450' B4 ~4540-4630' B5B ~3720-3775' A6 ~4100' TT ~3850' 0 9-5/8" Ret PKRK ~3650'03650 9-5/8" Ret PKRK95/8 Ret PKR The picture can't be displayed.The picture can't be displayed.The picture can't be displayed.The picture can't be displayed. 13-5/8"Spherical Annular Height: 46" Weight: 12,806 13-5/8"LWS Double BOP Height: 37" Width: 93" Weight 9,900 lbs. TOP RAMS 2-7/8" TO 5-1/2" MULTI- RAMS BOTTOM RAMS BLIND RAMS 13-5/8"Mud Cross W/ 4- 1/16" outlets Height:28.5" Width 31" Dual 4-1/16" Manual Gate valves W/ DSA to 2-1/16" 4-1/16" Manual Gate valve & 4-1/16" HCR W/ DSA to 2-1/16" Full Mud Cross Assy. width w/ valves installed Width: 98.5" Weight: 2200 lbs. Kill side Choke side Height Addition for Ring Gaskets: 0" BOP Total Height: 111.5" BOP Total weight: 24,906 lbs. 13-5/8" 5m BOP Package W/ 4-1/16" Valves VBR BLINDS Hilcorp Alaska, LLC Hilcorp Alaska, LLC Changes to Approved Rig Work Over Sundry Procedure Subject: Changes to Approved Sundry Procedure for Well KDU-09 (PTD 208-106) Sundry #: Any modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to the AOGCC by the rig workover (RWO) “first call” engineer. AOGCC written approval of the change is required before implementing the change. Sec Page Date Procedure Change New 403 Required? Y / N HAK Prepared By (Initials) HAK Approved By (Initials) AOGCC Written Approval Received (Person and Date) Approval: Asset Team Operations Manager Date Prepared: First Call Operations Engineer Date MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg 714,/M DATE: DATE: May 18, 2020 P. I. Supervisor � 1 FROM: Jeff Jones SUBJECT: VBR Failure Investigation Petroleum Inspector Hilcorp Rig 401 Kenai Deep Unit 9 PTD 2081060; Sundry 320-146 Background: While performing a blowout prevention (BOP) equipment test at Hilcorp Rig 401, well KDU 9 on the morning of April 18, 2020, the variable bore rams (VBR) failed catastrophically, ejecting a piece of the VBR and test fluid out of the BOP stack.' The test was witnessed by AOGCC Inspector Adam Earl. The 2.875" x 5.5" VBR was in the upper ram cavity of the double -gate body within the BOP stack. The failure occurred during the 4200 -psi high pressure test. The BOP stack manufacturer is Integrated Equipment Ltd (Integrated) — provided by Yellowjacket Oilfield Services (YJOS); the VBR manufacturer is Townsend -Cameron a of the Integrated brand double - gate BOPE body provided by. Inspector Earl's description of the incident indicates in part: "as the crew was just starting to bleed the pressure, the 2 7/8"X 5 %" VBR failed, causing an uncontrolled release of 4000 PSI. A ram was flung up and out of the (BOPE) stack along with the test fluid (fresh water), that shot up the derrick. The top plate of the ram was found on the ground some 20' from the rig sub." I was assigned post -incident inspections of the damaged equipment and witnessing testing of the BOP equipment as part of AOGCC's investigation. May 7, 2020: 1 traveled to the YJOS facility in Nikiski, Alaska to investigate the VBR that occurred on Hilcorp 401. On arrival I met with Hilcorp representatives Mike Leslie and Jay Compton, and Yellowjacket representatives Aaron Poindexter and Austin Kornder. We discussed the procedures for disassembling and inspecting the damage to the BOP stack. I was informed the BOP stack had been delivered to this site wrapped in herculite and undisturbed after the incident. Mr. Poindexter relayed his discussions with the Townsend -Cameron representatives regarding the incident. He was told that if the back part of the top VBR seals were found cut in a crescent shaped pattern when removed and inspected, the rams had likely been opened under pressure, forcing the ram upward against the sharp upper edge of the ram body cavity. 13 5/8 -inch, 5000 psi BOP stack configured as follows (top to bottom): Annular; Double Ram Block with VBR on top and blind ram on bottom; mud cross with choke and kill line connections/valves. 2020-0518_Investigation_VBR_Failure_Hilcorp401 ij.docx Page 1 of 17 The BOP double -gate ram body was brought into the shop, unwrapped and inspected (photos 1 - 2). The VBR packer seal assembly on one side was found broken in two pieces and striations in the rubber appeared to be from fluid erosion (photos 3 - 12). The alignment tab was broken off on one side and the damage requiring a portion of the VBR to be removed with a grinder so it could be removed and inspected (photos 13 — 17). When the VBR were removed and inspected I noted that the back portion of both top ram seals had been cut in a similar crescent shaped pattern, indicating the rams had opened under pressure (photos 18 — 20). The damaged VBR and all pieces were boxed for shipment to a metallurgist for examination. Mr. Leslie and Mr. Compton agreed that we should inspect Hilcorp 401 at KDU 9 (incident site) and associated BOP control systems the following day. May 8, 2020: 1 traveled to Hilcorp's 41-7 pad in the Kenai Gas Field to continue investigating the VBR failure incident. On arrival I met with Hilcorp representatives Mike Leslie, Jay Compton and Rig 401 Wellsite Supervisor Bobby Harrington, who was on duty today and the day of the VBR incident. We inspected the wellsite and rig layout which is a truck mounted mobile unit connected to skid -mounted power generation, mud pits, BOP accumulator control/air compressor/test pump combination (accumulator control skid) and various other mobile equipment. The remote BOP equipment control panel is an outdated air -operated type that has no open/close position or accumulator pump on/off indicator lights (photo 21). When the incident occurred, this panel was located on the ground at the bottom of the steps leading to the driller's station and connected to the accumulator control skid via a long bundle of air lines. Discussion with Mr. Harrington about the VBR failure indicated the following: - Prior to the catastrophic failure of the VBR, attempts to performance test the VBR to 4000 psi (as required in Sundry Approval 320-146) were unsuccessful. He consulted YJOS representative Aaron Poindexter and decided to raise the manifold pressure on the accumulator in steps until the VBR held pressure. - When the VBR was closed at the remote panel prior to the catastrophic failure, he wasn't in a position to see the VBR control handle function at the - accumulator and he didn't know if anyone checked for proper VBR handle position at the accumulator or ram rod position at the BOP stack. - The accumulator manifold pressure was eventually raised to 2250 psi (from 1500 psi; according to test witness notes from AOGCC Inspector Adam Earl) to achieve a successful 5 -minute, 4000 psi test just prior to the VBR catastrophic failure. - The Rig 401 accumulator control skid had recently been removed from service due to poor performance (slow accumulator pressure recovery time) and replaced. - Rig crew opened the stack to remove the test joint after the failure , - All the gauges on the accumulator were recently calibrated. 2020-0518_Investigation—VBR _ Failure _Hilcorp401 ij.docx Page 2 of 17 Inspection revealed that the test pump was plumbed in such a way as to allow the test chart to be pressured up and then inadvertently blocked in, potentially providing inaccurate test records (photo 22). To assess the operating condition of the accumulator/BOP control as a system and any potential role in the VBR failure, it was necessary to move the accumulator skid from Rig 401 to the YJOS facility and connect it to the Integrated double -gate BOP for further inspection and testing. May 13, 2020: 1 returned to the YJOS facility in Nikiski, AK to continue investigating the Hilcorp Rig 401 VBR failure incident. On arrival I met with Hilcorp, representatives Mike Leslie and Jay Compton, and YJOS representative Austin Kornder. The Hilcorp accumulator control skid had been trucked to YJOS and set near the shop. This accumulator system has one electric triplex pump and two air pumps. Evaluation began with starting the air compressor to restore pressure to the remote BOP equipment control panel. - A loose air supply line fitting was leaking air profusely from the bottom control station valve used for the lower pipe ram (LPR) on the remote panel. This control station was not in use at the time of the incident. The air leak was stopped to enable testing of the control system. The upper pipe ram (UPR) actuator on the remote BOPE panel — used for the VBR control at the time of the incident — was checked for air leaks and tested for crossflow between the open/close sides using a calibrated 0 to 100 psi test gauge; it operated properly under these conditions. - The Integrated BOP's double gate body was loaded with solid blind rams in the upper cavity and connected to the energized accumulator skid hydraulic system — powered by a portable generator. - One of the air pumps appeared to be inoperative requiring maintenance. The hydraulic oil in the accumulator reservoir appeared to be contaminated with water and should be replaced with new oil. - Accumulator system pressure indications after start-up were: o Accumulator Pressure: 3050 psi; o Manifold Pressure: 1650 psi; and o Annular Pressure: 875 psi. - Accumulator system pressure indicators after functioning the blind ram: o Manifold Pressure: 1500 psi; o Annular Pressure: 1200 psi. - The blind rams were functioned several times and observed each time to be operating properly. - The ram doors were opened to inspect the rams and seals for damage and some scratches were noted on the ram blocks from the previously damaged inside surface of the double gate cavity, but nothing found was significant. - At this point the doors were closed and the manifold pressure was raised to 2200 psi and functioned several times to simulate accumulator conditions at the time of the VBR failure. The accumulator/BOP equipment system appeared to operate normally except that the upper ram accumulator control 2020-0518_Investigation_VBR_Failure_Hilcorp401 ij.docx Page 3 of 17 4-we before fully functioning. Testing today indicated that it takes a minimum of 55 psi air pressure to operate the UPR air actuator on this remote panel. YJOS personnel did not have the ability to test the air dryer for the BOP equipment pneumatic control system today and the operability and effectiveness of this equipment remains unknown. May 14, 2020: 1 returned to the YJOS facility in Nikiski, AK to continue investigating the Hilcorp Rig 401 VBR failure incident. On arrival I met with Hilcorp representatives Mike Leslie and Jay Compton and YJOS representative Austin Kornder to continue testing the Hilcorp accumulator/BOP equipment control system. The accumulator's three air control junction plates were disassembled and checked for failed gaskets, leak paths, and crossflow potential; none were found (photo 24). A small amount of water, dirt, and a piece of foam were removed from the air lines. The next test was an attempt to recreate conditions as close as possible to the time of the incident. The previously noted air fitting leak at the bottom station (LPR) of the remote BOPE control panel was simulated. The accumulator manifold pressure was set at 2200 psi and the upper rams functioned closed at the remote BOP control panel several times. I observed the 4 -way valve "short -stroke" on more than one occasion (function half -way to the two -blocked position or to a mid -stroke position between "blocked" and "open" allowing hydraulic oil pressure to bypass back to the accumulator reservoir. In this position the accumulator pumps would run continuously but likely not maintain closing pressure. In this scenario the VBR would not be hydraulically locked in position. The potential exists to cause the VBR components to fail and be ejected from the BOP stack if the 4000 -psi test pressure below found a leak path through, damaging the VBR packer seals and forcing the VBR partially open under pressure. Summary: I inspected the damaged Hilcorp Rig 401 BOP stack components, the incident location, and witnessed performance testing done on the BOP equipment involved to determine the cause of the VBR failure on April 18, 2020. Equipment testing indicates poor accumulator performance, BOP control air system integrity failure (water removal and leak), and antiquated remote BOP equipment control panel without indicator lights. The VBR 4 -way control valve on the accumulator exhibited a "short - stroke" behavior when accumulator manifold pressure was increased to 2200 psi (replicating steps taken on April 18, 2020 in response to the VBR not passing a performance test). That coupled with not verifying the ram position at the accumulator or BOP stack could be contributing factors to the incident. Metallurgist testing of the failed VBR is still in progress. Attachments: Photos (24) 2020-0518_ Investigation _VBR_ Failure_Hilcorp401 ij.docx Page 4 of 17 VBR Failure Investigation — Hilcorp Rig 401 KDU 9 (PTD 2081060) Photos by AOGCC Inspector J. Jones 5/7 — 5/14/2020 �►ItttTTEGt�.�" EOL p!KR ,RKING PRESSURE '*TURE RA71NG 'ATEDaVOR M, LRESEORE I ��CMIIFM7El)CPERAi,PoF.GP.EScb�i: _. - 1,Y 100 1, NUMIB(H 2t.��04TE INTFGRA7FO _ 5!: F JAI V4'NNNL: kl R511k1 11.E 1:.11n4gA: Wh 1+.IiN.� Cqp :ry gAlEO MAW qw1 '41 R�1.:1 a IgC�4M!fM6.tl MIq�!MU M1gt>:la:: �EE■■E■E■ i:l Rt\ 14LMNYN ay IYn .n. 1 n..,.a,•t.w 1•nr 13 5/8" BOP Double -Gate Body from Hilcorp 401 with failed VBR 13 5/8" BOP Double -Gate Data Plate 2020-0518_Investigation—VBR_Failure—Hilcorp401 ij.docx Page 5 of 17 U E N E O (6 O E d 0 0 .a ?m CL 0 of d rn O E c6 0 l0 r LL �I O m �O > O 0a 0 m rn N d c 00 0 NN O N 4 ,•p, � W 2020-0518_Investigation_VBR_Failure_Hilcorp401 Jj.docx Page 8 of 17 Damaged VBR (top view) Damaged VBR (side view) 2020-0518_Investigation_VBR_Failure_Hilcorp401 ij.docx Page 9 of 17 Broken VBR Pack -off (top view) Broken VBR Pack -off (side view) 2020-0518_Investigation_VBR_Failure_Hilcorp401 ij.docx Page 10 of 17 Broken VB R Pack -off VBR half sections Broken VBR Locking Tab v 1t.. w 2020-0518_Investigation_VBR_Failure_Hilcorp401 Jj.docx Page 11 of 17 2020-0518_Investigation_VBR—Failure _Hilcorp40l Jj.docx Page 12 of 17 Broken Pack -off Retaining Bolt woo j s 2020-0518_Investigation_VBR_Failure_Hilcorp401 ij.docx Page 14 of 17 VBR Top Seal cut .�,� �Lf�-_ rc . _ ": w —ti-�--ti-� i ,. -�.�—.. _ - - � __ � �-� /� , " .,,/ ;� qt �� .vw i t r o .;� r: / F,'�� ' t� � � �.; � � :�__ - � . G �J.. ^,. � �I_ �_ J I � a i � " ,. JJ � .r — 1� �� - - �' ' _ o �. ,� r� �_ _ �:, - � �;�; 7 2020-0518_Investigation_VBR_ Failure _Hilcorp401 ij.docx Page 17 of 17 1 of 3 Accumulator Air Control Junction Plates; VBR Plate shown Samuel Gebert Hilcorp Alaska, LLC GeoTech Assistant 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 10/15/2020 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KDU-09 (PTD 208-106) Cement Bond Log 04/29/2020 Please include current contact information if different from above. Received by the AOGCC 10/15/2020 PTD: 2081060 E-Set: 34104 Abby Bell 10/15/2020 Samuel Gebert Hilcorp Alaska, LLC GeoTech Assistant 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 10/13/2020 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KDU-09 (PTD 208-106) TMD3D SIGMA LOG 04/24/2020 FIELD DATA PROCESSED Please include current contact information if different from above. PTD: 2081060 E-Set: 34074 Received by the AOGCC 10/13/2020 Abby Bell 10/13/2020 Samuel Gebert Hilcorp Alaska, LLC GeoTech Assistant 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 10/13/2020 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL KDU-09 (PTD 208-106) PERFORATING RECORD 06/01/2020 Please include current contact information if different from above. Received by the AOGCC 10/13/2020 PTD: 2081060 E-Set: 34073 Abby Bell 10/13/2020 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: Run PNL Log, N2 Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 9,850 feet 9108; 9462 feet true vertical 9,513 feet 9,720 feet Effective Depth measured 9,108 feet 4920; 8691 feet true vertical 8,795 feet 4607; 8378 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic 3-1/2" 9.3# / N-80 5,690' MD 5,377' TVD Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 8,691' MD 8,378' TVD DHL Pkr, Packers and SSSV (type, measured and true vertical depth)ZXP Liner Pkr; N/A 4,920' & 8,691' MD 4,607' & 8,378' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ted Kramer Authorized Title:Operations Manager Contact Email: Contact Phone:777-8420 tkramer@hilcorp.com Senior Engineer:Senior Res. Engineer: 8,430psi Burst 3,060psi 7,240psi 139' 1,608' 5,750psi 3,450psi Collapse 1,500psi 1,950psi 3,090psi 7,500psi 5,410psi Casing Structural 20" 13-3/8" 9-5/8" Length 139' 1,675' 5,668' 3,476' Conductor Surface Intermediate Liner #1 Authorized Signature with date: Authorized Name: 140 Casing Pressure Liner #2 1,154' 490 9,532' 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-146 & 320-187 65 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 98 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 208-106 50-133-20578-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 225 Kenai Deep Unit (KDU) 9 N/A A-028142 5,668' Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Kenai Gas Field - Beluga/Upper Tyonek Gas Pool - Tyonek Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 7" 4-1/2" 8,955' 5,355' 8,642' WINJ WAG 279 Water-Bbl MD 139' 1,675' 9,845' 0 t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 3:03 pm, Jun 24, 2020 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.06.24 14:31:46 -08'00' Taylor Wellman Plug Perforations Perforate Run PNL Log, N2 gls 6/25/20 DSR-6/24/2020 RBDMS HEW 6/24/2020 Rig Start Date End Date E-line 4/14/20 6/1/20 Hold PJSM and review JSA's w/ personal Open well, SITP =75PSI. Bleed down to atmosphear. Total safety installed gas monitor and bump test same, rig watch installed monitoring system. Install BPV, nipple down production tree, Nipple up 13-5/8" X 2' spacer spool, Double ram BOP with 2-7/8" X 5" VBR & blind ram blocks. Nipple up annular, choke and kill lines. hook up koomey lines and pressurize koomey system. Load mud pits with 170bbls of fresh water, treat same with 38 sacks of KCL. Trouble shoot koomey air compressor & repair. R/U rig floor, hand rails, & stairs. P/U 2-7/8" test joints, Shell test bope to 250 low/4000 high. Held same. Shut down for night. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 04/14/2020 - Tuesday PTW and JSA. Spot and rig up equipment. PT lubricator to 250 psi low and 3,500 psi high. TP - 100 psi. RIH w/CCL/GR and 3" x 20' dump bailer filled with traction sand and tie into perf log dated 2015. Tagged at 9,132' which is 4' from top of open perf at 9,136'. Picked up 10' and dumped sand. Waited 5 min and picked up 20' and went back down and tagged same spot. That tells us it went by perfs and hopefully stopped at fish at 9178'. Dumped 9.5' sand. POOH. Good dump. Take shooting CCL/GR off tool string and added another 10' section of bailer. RIH w/ 3" x 30' dump bailer filled w/traction sand (14.2' sand) and tie into collars and tag at 9,132'. Pick up 15' and dumped 14.2' of sand. Wait 5 min, pick up 20' and went back and tagged same spot. POOH. Good dump. RIH w/ 3" x 30' dump bailer filled w/traction sand (est 14.2' sand) and tie into collars and tag at 9,113'. It seems like the sand had not settled when we made our tags. Called town and discussed. Decided to dump this load and shut down for the night. Will come back at 0700 hrs in the morning and tag with 2-3/4" GR and CCL/Gama Ray tool. If we are good on our depth then we will dump 10' of cement. POOH . Bailer was half full of sand so just got 1/2 bailer dumped. Rig down for the night and secure well. 04/15/2020 - Wednesday PTW and JSA. TP - 50 psi RIH w/CCL/GR and 2" wt bar and tie into perf log dated 2015. Tagged top of samd at 9,118'. Run correlation log. POOH. Talked to town and will dump 10' of cement. RIH w/ 3" x 30' cement dump bailer loaded with 6.39 gal of 16 ppg cement and tag top of sand at 9,118'. Pick up 11' and dump 10' of cement on top of sand. Est TOC at 9,108'. CIP at 1230 hrs. POOH. Good dump. Left cement sample on Kevin desk. Rig down lubricator and secure well. Rig will start moving on well in the morning. 04/16/2020 - Thursday 04/17/2020 - Friday PERFORM PJSM & REVIEW JSA'S WITH PERSONNEL DRESS & CLEAN LOCATION AROUND KDU-09, LAY OUT POLLUTION MATTING & COVER WITH HERCULINER, SET DUNDAGE ON EDGES & PREPARE TO SPOT RIG & EQUIPMENT. SPOT RIG BASE BEAM, RIG CARRIER, KOOMEY HOUSE, TRANSFORMER, RIG PUMP, 210 BBL FLUID TANK, CHOKE HOUSE, DIESEL TANK, & GENERATOR. STAND & FULLY SCOPE DERRICK, SECURE GUY LINES, REPLACE BOTH CATLINE WINCHES ON RIG CARRIAGE. RUN ELECTRICAL CORDS TO TRANSFORMER, HOOK UP PUMP LINES, PULL & STRETCH OUT KOOMEY LINES. BUILD CONTAINMENT AROUND RIG AND EQUIPMENT WITH DUNDAGE. CONTINUE GETTING RIG INTO COMPLIANCE. cement cap on top of sand plug. MIRU rig 401 Rig Start Date End Date E-line 4/14/20 6/1/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 Hold PTSM & review JSA'S w/personnel Break out & L/D hanger & pup jts. Troubleshoot foster rig tongs & power pack unit. hydraulics dead heading when engaging lifting lift cylinder. Repair same & proceed L/D 4.5" TBG POOH L/D 4.5" 12.6# 563 hydril tbg. Total of 198 jts layed down @ 2030 hrs. Depth = 1,068'. Close pipe rams & secure well for night. 04/20/2020 - Monday HELD PTSM & REVIEW JSA'S W/PERSONNEL TEST HYDRIL TO 250 LOW/2,500 HIGH, HELD SAME. TEST VBR RAMS TO 250 LOW/4,000 HIGH, HELD SAME, TEST WERE DONE WITH 2-7/8" TBG. PULL TEST JOINT. TEST BLIND RAMS, CHOKE LINE, KILL LINE, CHOKE & MANIFOLD TO 250 LOW/4000 HIGH, HELD SAME. P/U 4.5" TEST JOINT, TEST VBR TO 250 LOW/4,000 HIGH, HELD SAME. L/D TEST JOINT. PERFORM KOOMEY DRAW DOWN TEST. 200 PSI BUILD UP IN 55 SEC, FULL BUILD UP IN 235 SEC. TEST WITNESSED BY ADAM EARL L/D 4.5" TEST JOINT, BREAK DOWN SAME. REMOVE BPV, M/U 4.5" LANDING JOINT. FILL UP 4.5" TUBING P/U ON 4.5" PRODUCTION TBG INCREASING PULL WEIGHT TO 130K. UNABLE TO PULL SEALS FREE. MIX ADDITIONAL KCL FLUID IN FLUID TANK WHILE WORKING TUBING FROM 95K TO 130K. SEALS COME FREE. PULL HANGER TO FLOOR. SECURE WELL & SDFN. 04/21/2020 - Tuesday HOLD PJSM & REVIEW JSA WITH PERSONNEL. P/U DOUBLE GATED BOP & MUD CROSS, INSTALL ADDITIONAL 2' SPACER SPOOL, LOWER BOP & N/U SAME, INSTALL 13-5/8" 5M HYDRIL. N/U CHOKE & KILL LINES. R/U RIG FLOOR & STAIRWAYS. SET PIPE HANDLER IN PLACE, R/U FOSTER TONGS, P/U 4.5" PIPE HANDLING TOOLS PRE-TEST 13-5/8" HYDRIL TO 250/2500 FOR 5 MIN EACH (HELD SAME). TEST CHOKE, 2-7/8" VBR, & KILL LINE TO 250/4,000 FOR 5 MINUTES EACH (HELD SAME). STATE WITNESS MR. ADAM EARL TO BE ON LOCATION @ 0700 HRS MONDAY MORNING FOR BOPE WITNESSED TEST. SDFN. 04/19/2020 - Sunday PERFORM PJSM & REVIEW JSA'S WITH PERSONNEL AOGCC STATE WITNESS ADAM EARL ARRIVED ON LOCATION, BUMP TEST GAS SENSORS, TEST 13-5/8" 5M HYDRIL TO 250/2500 (GOOD TEST), TEST 2-7/8" X 5" VBR RAMS TO 250/4,000, UPON COMPLETION OF HIGH TEST, VBR RAM FAILURE BLOWING UPPER HALF OF VBR RAM BLOCK OUT OF BOP'S. DISCUSS FAILURE WITH UPPER MANAGEMENT. DECISSION MADE TO N/D YELLOWJACKET BOP & PERFORM RCRA INVESTIGATION. ORDER OUT WEATHERFORD BOPE SAME. N/D YELLOWJACKET BOPE & SET ON TRAILER FOR INSPECTION/INVESTIGATION. PICTURES ADDED TO "O" DRIVE FOR VIEWING. BOPE COVERED WITH HERCULINER TO MINIMIZE RUSTING. N/U 13-5/8" 5M FLOW TEE, ADAPTOR FLANGES, MANUAL VALVE, & HYDRAULIC HCR WING ON ONE SIDE. (2) MANUAL VALVESON SECOND WING. N/U 13-5/8" NOV TYPE LXT DOUBLE GATED BOP DRESSED WITH BLIND RAMS & 2-7/8" X 5" VBR'S. ORDER OUT ADDITIONAL SPACER SPOOL DUE TO TEST JOINT SPACE OUT & HEIGHT OF VBR'S. SDFN. 04/18/2020 - Saturday Ram failure VBR sheared pull hanger VBR RAM FAILURE BLOWING UPPER HALF OF VBR RAM BLOCK OUT OF BOP'S. BOPE test... incident with VBR & REVIEW JSA'S WITH PERSONNEL AOGCC STATE WITNESS ADAM EARL ARRIVED ON LOCATION, FILL UP 4.5" TUBING P/U ON 4.5" PRODUCTION TBG INCREASING PULL WEIGHT TO 130K. UNABLE TO PULL SEALS FREE. MIX ADDITIONAL KCL FLUID IN FLUID TANK WHILE WORKING TUBING FROM 95K TO 130K. SEALS COME FREE. PULL HANGER TO FLOOR. SE Rig Start Date End Date E-line 4/14/20 6/1/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 Hold PTSM & review JSA'S w/personnel Perform rig service, grease crown, blocks & draw works, visual derrick inspection & draw works inspection. Open well, Continue TIH with 2-7/8 " 7.9# PH-6 TBG to 8,687.62' tbg measurements, lightly tag liner top. P/U to 8,685' & prepare to circulate hole clean. M/U tiw & pump in swedge, break circulation & circulate 1.5 bottoms up. Total of 777 bbls pumping @ 3.7 bpm. L/D TIW & prepare to POOH. POOH laying down 2-7/8" ph-6 work string to 6,430'. Hydraulic line ruptured on pipe wrangler due to bent kick plate. R/D pipe wrangler, move pipe wrangler to side of location for servicing. R/U catwalk & beaver slide with pipe rack. Continue POOH laying down 2-7/8" ph-6 tbg using beaver slide & catwalk. Total of 175 jts layed down @ 0830 hrs. Depth = 3,363'. Secure well same R/D beaver slide & catwalk, move in repaired pipe handler & R/U same. Lock down VBR rams & wait on daylight. 04/24/2020 - Friday Hold PTSM & review JSA'S w/personnel. Open well, well static. Continue POOH, laying down 2-7/8" ph-6 work string to surface. Total of 286 joints. Break down & l/d BHA #1. R/D pipe wrangler & move to side of location to be worked on. MIRU Halliburton e-line, lubricator & logging accessories. N/U 13-5/8" 5M X 7-1/16" 5M X 7" OTIS adaptor to top of hydril, P/U Halliburton Pulse Neutron logging tools & test lubricator to 3500 psi. (Test Good) Tool max O.D. = 2", Length = 30.0' RIH with logging tools to 9,100', Log up to 8,691'. Tie into original Weatherford gamma log on file. Continue logging from 8,691' to 1,675'. POOH, L/D tools & send data to town. P/U CBL tools consisting of, cm inline centralizer, HCBLM tool, inline centralizer, x-o, through tbg telemetry cartridge, 5' weight bar, & cable head assembly. max O.D. = 3.03" Length = 29.33'. RIH with tool assembly to 5,507', tag same, P/U & work into 7" liner top. Tag again @ 5,516', work free & RIH to 5,572'. Tag & hung up & 5,572'. String weight down = 700 lbs, up = 1,600 lbs. Work tools pulling up to 3,300 lbs (70% of pull out). Currently preparing to pressure up on csg to work tools free. Called & located 1/4" braided line unit with fishing assembly for possible fishing ops. 04/22/2020 - Wednesday Hold PTSM & review JSA'S w/personnel. Continue POOH with 4.5" production tbg to surface, L/D seal assembly. Total of 221 jts of 4.5" 12.6# tbg, (4) pup jts, & seal assembly layed down. Ship 4.5" tbg to tuboscope. L/D 4.5" handling tools, P/U 2-7/8" handling tools, swap tong dies & dress slips for 2-7/8" tbg. Measure/caliper BHA, load pipe racks & slm tbg. P/U BHA #1, HAK owned 6-1/8" bit, scraper, & X-O sub. Total length = 4.95', M/U BHA same, P/U & TIH with2-7/8" 7.9# ph-6 tbg. Total of 235 jts in hole, depth @ 1900 hrs = 7,168'. Secure well & wait on daylight. 04/23/2020 - Thursday Log PNL and CBL Continue POOH with 4.5" production tbg to surface, L/D seal assembly. P/U CBL tools consisting of, cm inline centralizer, HCBLM tool, inline centralizer, x-o, through tbg telemetry cartridge, 5' weight bar, & cable head assembly. max O.D. = 3.03" Length = 29.33'. RIH with tool assembly to 5,507', tag same, P/U & work into 7" liner top. Tag again @ 5,516', work free & RIH to 5,572'. Tag & h N/U 13-5/8" 5M X 7-1/16" 5M X 7" OTIS adaptor to top of hydril, P/U Halliburton Pulse Neutron logging tools & test lubricator to 3500 psi. (Test Good) Tool max O.D. = 2", Length = 30.0' RIH with logging tools to 9,100', Log up to 8,691'. Rig Start Date End Date E-line 4/14/20 6/1/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 04/26/2020 - Sunday Hold PTSM & review JSA'S w/personnel R/D foster tongs & R/U mccoy tongs. M/U test joint assembly to 13-5/8" test plug. Land out test plug & fill stack. Shell test same to 4,000 psi Test hydril to 250 LOW/2,500 HIGH, held same. Test VBR rams to 250 LOW/4000 HIGH, held same, Test were done with 2-7/8" tbg. Pull test joint. Test blind rams, Choke line, Kill line, Choke & manifold to 250 LOW/4000 HIGH, Held same. P/U 3.5" Test joint, Test VBR to 250 LOW/4,000 HIGH, small leak on x-o, tighten & retest. L/D Test joint. Perform Koomey draw down test. 200 PSI Build up in 50 sec, Full build up in 229 sec M/U BHA #2 Polish mill assembly on ground. Pilot mill, 3' x 5" pup joint, tail polish mill, 4.5" IF X 3.5" IF XO SUB, 3.5" X 2-7/8" PH-6 XO SUB. Pull up on rig floor. Attempt to torque up with McCoy tongs. 5" x 7-5/8" die blocks not fully opening allowing 6-5/8" mill connection to fully enter tongs.Trouble shoot, unable to fully open make head fully open. Send bha to Halliburton (Sterling) to get bucked up. L/D McCoy tongs, P/U foster tongs, Break down test assembly & x-o subs, BHA arrived back on location @ 1815 hrs, unload same. Close blind ram & secure well for night. 04/27/2020 - Monday Hold PTSM & review JSA'S w/personnel P/U polish bore mill assembly, TIH picking up 2-7/8" 7.9# ph-6 tbg to 5,473' tbg measurements. L/D tag joint & prepare to R/U power swivel L/D 2-7/8" elevators, P/U 3.5" elevators, Install stiff lines & turn buckles, R/U power swivel, install lower Kelly valve, x-o sub, & saver sub. M/U tag joint, begin pumping & 2 bpm rotating @ 40 rpm, 1100ft/lbs torque. lower tbg to 5,480' tbg measurements, tag same (8' below original tag depth) with 1k dow,. torque up to 2200 ft lbs, polish liner top until torque down to 1,200 ft/lbs. Stop rotating & p/u above liner top, slack of same sliding into top of liner to 5,480'. Reverse circulate two tbg volumes (57 bbls). Shut pump down, Well static R/D power swivel, change out 3.5" elevators, install 2-7/8" elevators, P/U to 5,430' & secure well. 04/25/2020 - Saturday Continue working e-line to free CBL logging tools @ 5,572'. Pressure up on csg to 1500 psi. Beat down & free tool string, Attempt to move up hole with no success (hanging in csg collars). Move down hole having to work thru casing collars to 5,656'. Attempt to pull up with no success. Work wireline pulling 3,300 lbs & bleeding off csg. Tools come free. POOH to surface W/E-LINE. Break off lubricator & inspect tools, found lower centralizer had lower arm & roller missing. All other tools & parts recovered. R/D & demobe Halliburton e-line. N/D 13-5/8" 5m x 7" Otis adaptor. Set racking mat & I-beams in place. Set pipe handler in place. Load pipe racks with 2-7/8" work string, slm work string same. P/U 2-7/8" handling tools, M/U x-o subs to tiw, change out slip inserts & tong inserts to P/U work string. P/U & TIH W/ 2-7/8" ph-6 work string. to 1,098'. POOH racking work string in derrick Modify rig floor for stiff line cables for power swivel ops, unload & caliper polish mills & x-o subs. Secure well & rest crew. c M/U BHA #2 Polish mill assembly on ground. Pilot mill, 3' x 5" pup joint, tail found lower centralizer had lower arm & roller missing. t lbs, polish liner top until torque down to 1,200 ft/lbs. Rig Start Date End Date E-line 4/14/20 6/1/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 05/01/2020 - Friday Hold PTSM & Review JSA'S w/personnel Continue N/D 13-5/8" 5M BOP, Unstack hydril, double gated ram bop, flow cross with spacer spools. Dress well head same. N/U 13-5/8" 5M x 3-1/8" 5M production tree. Test upper void to 5,000 psi (held same) HAK 401 released to KDU #10 @ 11:00 HRS. 05/02/2020 - Saturday PTW, JSA with pollard SL. Rig up slick line . PT 1500 psi. RIH with 2" JDC to 4946' WLM. Latch with tool. POOH with ball and rod. RIH with 3" GS to 4,950' WLM. latch with tool. Pull RHCP plug OOH. Rig down move to KBU 31-7X. Hold PTSM & review JSA'S w/personnel. POOH laying down 179 jts of 2-7/8" 7.9# ph-6 work string. Inspect bha, had scarring on upper polish mill brass, Pictures in "O" drive. L/D BHA same. N/U 13-5/8" 5M flange x 7-1/16" 5M x 7" Otis connection. Spot & R/U AK E-line with 7" lubricator package. P/U 5.965" gr/jb with ccl & test lubricator to 3,500 psi. Bleed down pressure & open well RIH with GR/JB to 8,691', tag same. P/U & had overpull, slack off & P/U, tools free. POOH w/ e-line to surface. Recovered cup full of scale. L/D gr/jb same P/U CBL tools & RIH T/5,600', Test tools inside 7" liner, found tool shortage, pooh same, tools at surface. Change out tools, re-head line & surface test same. RIH with CBL logging tools to 8,691', Run CBL F/ 8,691' up to 5,473'. POOH to surface, L/D logging tools. Send bond log to town. Secure well for night. 04/29/2020 - Wednesday Hold PTSM & Review JSA/S w/personnel Wait on 9-5/8" centralizer to aarive on location, P/U CBL logging tools with 9- 5/8" centralizers. RIH & Run CBL in 9-5/8" csg f/5,479' t/1,675'. TOC @2,270'. R/D AK E-line & release to KDU-10 R/D 2- 7/8" elevators, R/U 3.5" elevators, slip inserts, & tong heads. Set pipe wrangler in place & load pipe racks. P/U 3.5" re- entry guide & M/U to 3.5" EUE 9.3# tbg joint, P/U & rih with 3.5" tail pipe assembly. Tail pipe assembly consisting of 4' pup below packer, 1 joint 3.5" tbg, x-n, 23 jts of 3.5" tbg, & re-entry guide. P/U 9-5/8" 40# DLH HYD set packer& M/U same. TIH picking up 3.5" 9.3# EUE modified tbg, torquing connections to 3,100 ft/lbs. Depth @ 1830 hrs = 2,030' Total of 64 jts picked up. Secure well & wait on daylight. 04/30/2020 - Thursday Hold PTSM & review JSA'S w/personnel Continue P/U & RIH w/ 3-1/2" 9.3# EUE Modified tbg, Install 3.5" IBT X 3-1/2" EUE modified 5m tbg hanger & land out same. Total of 180 jts of 3.5" tbg, packer depth = 4,918', EOT @ 5,690'. Run in hold down pins & test void to 5k (held same) Drop bar to set packer. L/D landing joint. Close blind rams, open 3.5" x 9- 5/8" annulus, Pressure up to 4,000 psi on 3.5" production tbg for 30 minutes & set packer. Pressure held @ 4,000 psi during packer setting. Bleed off pressure. Pressure test 3.5" x 9-5/8" annulus & packer to 2000 psi on chart for 30 minutes, held same. Bleed down pressure & save chart to "O" drive. R/D tongs, elevators, clear handling tools from rig floor, R/D stairways, hand rails, rig floor, racking mat & beams. Set BPV in hanger, bleed down koomey system, remove hydraulic lines from bope, N/D choke & kill lines, soft break studs on 13-5/8" 5m hydril. Shut down rig for night to rest crew. 04/28/2020 - Tuesday P/U 3.5" re- entry guide & M/U to 3.5" EUE 9.3# tbg joint, P/U & rih with 3.5" tail pipe assembly. Tail pipe assembly consisting of 4' pup below packer, 1 joint 3.5" tbg, x-n, 23 jts of 3.5" tbg, & re-entry guide. P/U 9-5/8" 40# DLH HYD set packer& M/U same. TIH picking up 3.5" 9.3# EUE modified tbg, torquing con RIH with tubing RIH & Run CBL in 9-5/8" csg f/5,479' t/1,675'. TOC @2,270' Rig Start Date End Date E-line 4/14/20 6/1/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 PTW, JSA with crew. Fire equipment. Spot up to well on pit liner. Rig up CTU 13 with 1.75" coil. Rig up N2 truck. Test 4" 10M quad BOPE stack and all associated valves to 250/4,000 psi. 24 hr BOPE test witness notification sent to state 5/1/2020 @ 1609 hrs. Witness waived via phone call with Jim Regg. BOPE test complete. Fuel equipment. Perform location walk around and secure wellsite for the night. 05/04/2020 - Monday PTW, JSA with crew. Fire equipment. Pick injector head and 10' of lubricator. Start transferring N2 from Air Liquid tanker to SLB N2 pump. Make up cold roll connector, pull test 20k. Make up DFCV, and Jet nozzle. Stab on well. PT Stack 250/3,500 psi. RIH. Cool down N2. Fluid returns to surface well is fluid packed. 5,000' come online with N2 at 1000 SCF/min. Tag PBTD @ 9,060' CTMD. Pick up and park coil to unload wellbore. 200 bbls returned start, POOH to surface chasing remaining fluid up hole. Tagged up. Perform final strap. 215 bbls unloaded. Swap N2 direction from CT string to bullhead down tubing to pressure up wellbore for perforating. 1,750 psi pumping at 1,000 scf/min to 2,505 psi SITP. 391,500 scf pumped or 4,205 gallons. 215 bbls recovered from wellbore. Close all wellhead valves. Bleed down N2 from surface lines. 4 loads sent to G&I 2,000 gallons remain on N2 pump truck. Rig down CTU. 05/14/2020 - Thursday Sign in. Mobe to location. PTW and JSA. Spot equipment and rig up lubricator. PT lub from 250 psi low and 3500 psi high. TP - 2350 psi. RIH w/ 2-3/8" x 20' HC Razor, 6 spf, 60 deg phase perf gun #1 and tie into OHL. Run correlation log and send to town. Get ok to perf the UT 4B from 8,203' to 8,223' with 2,200 psi on tubing. Blew well down to 2,150 psi accidently. Spotted and fired gun. The Scada gauge showed 1890 psi but found valve half way open. Opened it up and it showed 2,081 psi. After 5 min - 2,082.6 psi, after 10 min - 2,082.0 psi and 15 min - 2,081.7 psi. POOH. All shots fired and gun was dry. The computer quit working at 300' and waited for another one to come from the shop. RIH w/ 2-3/8 "x 31' HC Razor, 6 spf, 60 deg phase perf gun #2 and tie into OHL. Run correlation log and send to town. Get ok to perf the UT 2B from 7,863' to 7,894'. Spotted and fired gun with 2,070.5 psi. After 5 min - 2,074.5 psi, 10 min - 2,074.5 psi and 15 min - 2,074.6 psi. POOH All shots fired and gun was dry. RIH w/ 2-3/8" x 18' HC Razor, 6 spf, 60 deg phase perf gun #3 and tie into OHL. Run correlation log. Spotted gun from 7,822' to 7,840' (TY 75_8) and fired gun with 2,078.4 psi. After 5 min - 2,083.7 psi, 10 min - 2,085 psi and 15 min - 2,086.8 psi. POOH All shots fired and gun was dry RIH w/ 2-3/8" x 21 HC Razor, 6 spf, 60 deg phase perf gun #4 and tie into OHL. Run correlation log. Spotted gun from 7,607' to 7,628' (TY 73_2) and fired gun with 2,115.1 psi. After 5 min - 2,117.1 psi, 10 min - 2,117.2 psi and 15 min - 2,118.1 psi. POOH All shots fired and gun was dry RIH w/ 2-3/8" x 23 HC Razor, 6 spf, 60 deg phase perf gun #5 and tie into OHL. Run correlation log. Spotted gun from 7,534' to 7,557' (TY_ 72_8) and fired gun with 2,122.8 psi. After 5 min - 2,124.2 psi, 10 min - 2,119.9 psi and 15 min - 2,118.4 psi. POOH. All shots fired and gun was dry. Rig down lubricator and turn well back over to field. 05/03/2020 - Sunday gun from 7,822' to 7,840' (TY 75_8) a 1,750 psi pumping at 1,000 scf/min to 2,505 psi SITP. CTU Nitrogen displacement perf the UT 2B from 7,863' to 7,894'. Sp o perf the UT 4B from 8,203' to 8,223' with 2,200 psi on t perforate well..... Spotted gun from 7,607' to 7,628' (TY 73_2) and fired gun with 2,115.1 psi. A 200 bbls returned start, Spotted gun from 7,534' to 7,557' (TY_ 72_8) a Rig Start Date End Date E-line 4/14/20 6/1/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KDU-09 50-133-20578-00-00 208-106 Started at 0500 hrs. Sign in. Mobe to location. PTW and JSA. Spot equip and rig up lubricator. Had the wrong well head cross over so sent man back to shop while others finish rigging up. PT to 250 psi low and 3,500 psi high. TP - 1,174 psi. RIH w/GPT tool, 2-3/8"x20' Razor HC, 5 spf, 60 deg phase and tool quit working at 1,000'. POOH. Found wire pulled out of rope socket. Put new rope socket on line and go in hole with same to 88' and sat down. Took 600 lb over tool wt to pop loose. Try again and same thing. Thought maybe it was stopping at grease head flow tube. Came out of hole slow looking and feeling the line. Could not find anything wrong. Looked at tool string and it looked ok. Went back in hole and sat down at same spot. Pop loose and pulled up 5'. Deciding on what to do next for about 5 min and decided to come out of hole and call town. Tried to move tools and were stuck. Pulled to 1,400 lbs and locked break. Called town and discussed. Pumped methonal and came free. POOH to check tools. Tools checked ok. RIH w/GPT, 2-3/8"x20' Gun 1 Razor HC, 5 spf, 60 deg phase and tie into PNL log. Run correlation log and send to town. Get ok to perforate from 6,451' to 6,471' (Btm LB 1B). Spot and fired gun with 1216 psi on tubing. After 5 min - 1,206 psi, 10 min - 1,194 psi and 15 min - 1,186 psi. POOH. All shots fired and gun was dry. FL - 78,50' RIH w/GPT, 2-3/8" x 24' Gun 2 Razor HC, 5 spf, 60 deg phase and tie into PNL log. Run correlation log and send to town. Get ok to perf from 6,427' to 6,451' (Top LB 1B). Spot and fired gun with 961 psi on tubing. After 5 min - 933 psi, 10 min - 904 psi and 15 min - 885 psi. All shots fired and gun was dry. RIH w/GPT, 2-3/8" x 12' Gun 3 Razor HC, 5 spf, 60 deg phase and tie into PNL log. Run correlation log and send to town. Get ok to perf from 5493' to 5,505' (UB 8). Spot and fired gun with 601 psi on tubing. After 5 min - 595 psi, 10 min - 585 psi and 15 min - 578 psi. All shots fired and gun was dry. RIH w/GPT, 2-3/8" x 11' Gun 4 Razor HC, 5 spf, 60 deg phase and tie into PNL log. Run correlation log and send to town. Get ok to perf from 5,448' to 5,459' (UB 7A). Spot and fired gun with 534.1 psi on tubing. After 5 min - 532.9 psi, 10 min - 531.2 psi and 15 min - 528.4 psi. All shots fired and gun was dry. RIH w/GPT, 2-3/8" x 15' Gun 4 Razor HC, 5 spf, 60 deg phase and tie into PNL log. Run correlation log and send to town. Get ok to perf from 5,424' to 5,439' (UB 7). Spot and fired gun with 519.2 psi on tubing. After 5 min - 518.7 psi, 10 min - 518.4 psi and 15 min - 517.4 psi. All shots fired and gun was dry. Rig down lubricator and turn well back over to field. 05/22/2020 - Friday 06/01/2020 - Monday Sign in and Mobe to location. Spot equipment and rig up lubricator. PT to 250 psi low and 3,500 psi high. TP - 579 psi RIH w/ 2-3/8" x 21' Connex HC perf gun and tie into log sent from town. Run correlation log and send to town. Told to add 2'. Added 2' to correlation log, spotted and fired gun from 4,992' to 5,013' with 579 psi on well. After 5 min - 562 psi, 10 min - 544 psi and 15 min - 530 psi. OOH. All shots fired and gun was dry. Rig down lubricator and equipment and turned well over to field. RIH w/GPT tool, 2-3/8"x20' Razor HC, 5 spf, 60 deg phase and tool quit working at 1,000'. POOH. Found wire pulled out of rope socket. Put new rope socket on line and go in hole with same to 88' and sat down. T Tried to move tools and were stuck. Pulled to 1,400 lbs and locked break. Pumped methonal and came free. Formation Tops: Formation Depth (MD)Depth (TVD) Sterling Beluga Tyonek TD Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: 21'66'10/23/2008 Donna Ambruz Last Revision Date: June 12, 2020 Kenai Deep Unit #9 Kenai Gas Field, A-028142 500'3º / 100 ft starting @ 500' - 1,600' 0º Alaska 9,177' - 9,195'9,490' - 9,508' Kenai Peninsula Borough USA KOP @ 500' MD/TVD Well built 3o per 100 (500 to 1,600') to ~34º and dropped ~2o per 100 (2,400' to 4,000') to vertical & continued to TD @ 9,850' MD. Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 56 9-5/8" x 4-1/2" DSL Liner Packer @ 4,940' MD X-Nipple @ 4,970' MD Tubing String - 3.5", EOT @ 5,690' MD *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8,800' MD (Top) *Landing Collar ~ 9,689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-7 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #: 208-1060 API #: 50-133-20578-00-00 Prop. Des: A - 028142 KB elevation: 87' (21' AGL) WBS #: Latitude: 60° 27' 32.71" N Longitude: 151° 14' 50.27" W X: 274,850.67 Y: 2,361,856.78 Spud: 7/14/2008 TD: 8/5/2008 Rig Released: 8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 9,108' MD 8,795' TVD Rubbber section of Pump-Out-Plug @ 9,720' MD Tie-Back Tubing 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 8,691' TVD 0' 8,378' Tagged on (2-15-11) @ 9,706' ELM SCHEMATIC Tagged 30ft fish (spent perf guns) on (4/12/15) @ 9,186' ELM CIBP Set at 9,472' with 10ft of cement. @ 9,462' MD D2 D3b Tubing 3-1/2" N-80 9.3 ppf 8RD EUE Top Bottom MD 0'5,690' TVD 0'5,377' 320’ of sand plus 10’ of cmt. TOC = 9,108’ 4/15/20 LB 1B / LB 1D TY 72-8 / TY 73-2 TY 75-8 UT 2B / UT 4B UB1X / UB-8 4-1/2" Liner Top Pkr @ 8,691' 9-5/8" DHL Hydraulic Ret Pkr @ 4,920' 4/30/20 X-Nipple @ 4,963' 4/30/20 Btm of Tbg @ 5,690' 4/30/20 Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) Amt Date Status UB 1X 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 Open UB 7 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 Open UB7A 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 Open UB 8 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 Open LB 1B 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 Open LB 1D 6,512' 6,530' 6,198' 6,216' 18' 5/22/2020 Open TY_72_8 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 Open TY 73_2 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 Open TY 75_8 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 Open UT 2B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 Open UT 4B 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 Open 9,136' 9,166' 8,823' 8,853' 30 4/12/2015 Isolated 9,178' 9,198' 8,865' 8,885' 20 4/10/2015 Isolated D3B 9,490' 9,508' 9,177' 9,195' 18 10/22/2008 Isolated PERFORATION DETAIL D2 KDU-9 Pad 41-7 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. SCHEMATIC 8,203' 8,223' 7,889' 7,909' 20' 5/14/2020 OpenUT 4B 7,863' 7,894' 7,549' 7,580' 31' 5/14/2020 OpenUT 2B 7,822' 7,840' 7,509' 7,527' 18' 5/14/2020 OpenTY 75_8 7,607' 7,628' 7,293' 7,314' 21' 5/14/2020 OpenTY 73_2 7,534' 7,557' 7,222' 7,245' 23' 5/14/2020 OpenTY_72_8 LB 1D 6,512' 6,530' 6,198' 6,216' 18' 5/22/2020 Open 6,427' 6,471' 6,113' 6,157' 44' 5/22/2020 OpenLB 1B 5,493' 5,505' 5,178' 5,190' 12' 5/22/2020 OpenUB 8 5,448' 5,459' 5,134' 5,145' 11' 5/22/2020 OpenUB7A 5,424' 5,439' 5,111' 5,126' 15' 5/22/2020 OpenUB 7 4,992' 5,013' 4,679' 4,700' 21' 6/1/2020 OpenUB 1X 8,203 8,223 7,889 7,909 20 5/14/2020 OpenUT 4B U T T T L L U U U U 20 81 06 32 98 4 Bell, Abby E (CED) From: Guhl, Meredith D (CED) Sent: Tuesday, May 5, 2020 1:43 PM To: Bell, Abby E (CED) Cc: Davies, Stephen F (CED) Subject: FW: [EXTERNAL] KDU 9 (PTD 205-106; Sundry 320-187) - Request Attachments: KID U-9_TMD3D_24APR20_Processed Log -V1.las; KDU-9_TMD3D_24APR20 _Processed Log-V1.pdf; T17214 KDU-9 DML data.zip Hi Abby, RECEIVE® Can you please catalog these into RBDMS and save them in diglogs? MAY 0 5 2020 Thank you, AOGCC Meredith From: Davies, Stephen F (CED) <steve.davies@alaska.gov> Sent: Tuesday, May 5, 2020 1:39 PM To: Guhl, Meredith D (CED) <meredith.guhl@aiaska.gov> Subject: FW: [EXTERNAL] KDU 9 (PTD 205-106; Sundry 320-187) - Request For diglogs. I'll load these into Geographix. From: Ted Kramer <tkramer@hilcorp.com> Sent: Tuesday, May 5, 2020 7:32 AM To: Davies, Stephen F (CED) <steve.davies@alaska.gov> Cc: Schwartz, Guy L (CED) <guy.schwartz(n alaska.gov>; Carlisle, Samantha J (CED) <samantha.carlisle @alaska gov>; Donna Ambruz <dambruzPhilcorp.com>; Debra Oudean <doudean(@hilcorp.com> Subject: RE: [EXTERNAL] KDU 9 (PTD 205-106; Sundry 320-187) - Request Steve, Attached are the logs that we have to fulfill your request. We will let this e-mail serve as a transmittal if that is OK with you. Please respond and let me know that they were received. Otherwise I will drive to the tower and see if I can round up some hard copies. Sincerely, Ted Kramer Senior Operations Engineer Hilcorp Alaska LLC 907-777-8420(Office) 985-867-0665 (cell) Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.04.30 13:06:48 -08'00' Taylor Wellman By Jody Colombie at 4:31 pm, Apr 30, 2020 320-187 SFD 5/7/2020 5/1/20 CT N2 displace Guy Schwartz gls 5/4/20 DSR-4/30/2020 10-404 5/8/2020 dts 5/7/2020 JLC 5/8/2020 RBDMS HEW 5/11/2020 VERBAL APPROVAL ___________________________________________________________________________________________________________- Hilcorp requested verbal approval for Nitrogen blowdown 5/1/20 9 5/8 x 4 1/2 packer at 4940' 5668' csg shoe _____________ perfs in liner lap perfs in 7" liner STATE OF ALASKA ReviewedB �'4 /Zk OIL AND GAS CONSERVATION COMMISSION P.L SuprrJ BOPE Test Report for: KENAI DEEP UNIT 9 • Comm Contractor/Rig No.: Hilcorp 401 PTDN: 2081060 ' DATE: 4/20/2020 ' Inspector Adam Earl - Insp Source. Operator: Hilcorp Alaska, LLC Operator Rep: Bobby Hartington Rig Rep: Chad Johnson Inspcoor Type Operation: WRKOV Type Test: [NIT Sundry No. 320-146 - MISC. INSPECTIONS: FLOOR SAFTY VALVES: P/F Location Gen.: P Housekeeping: P PTD On Location P Standing Order Posted P Well Sign P Drl. Rig P Hazard Sec. P Misc NA FLOOR SAFTY VALVES: Test Pressures: Inspection No: bopAGE200428081338 Rams: Annular: Valves: MASP: 250/4000 ' 250/2500 -250/4000 TEST DATA MUD SYSTEM: Visual Alarm Trip Tank NA -NA Pit Level Indicators P P Flow Indicator NA NA ' Meth Gas Detector P FP H2S Gas Detector P - P MS Misc 0 NA 3122 Related [asp No: C- rYKfA 4 nUrJAA Pfesiure- ,k(— NL+oras ©. ps;/F-c ACCUMULATOR SYSTEM: Time/Pressure P/F System Pressure 3025 P Pressure After Closure 1750 P 200 PSI Attained 53 P Full Pressure Attained 235 P Blind Switch Covers: All Stations P Niton. Bottles (avg): 6(a)2200 P ACC Mise 0 NA BOP STACK: Quantity Size P/F Stripper Quantity WIT Upper Kelly 0 NA Lower Kelly 0 NA Ball Type 1 P ' Inside BOP 1 P - FSV Misc 0 NA Test Pressures: Inspection No: bopAGE200428081338 Rams: Annular: Valves: MASP: 250/4000 ' 250/2500 -250/4000 TEST DATA MUD SYSTEM: Visual Alarm Trip Tank NA -NA Pit Level Indicators P P Flow Indicator NA NA ' Meth Gas Detector P FP H2S Gas Detector P - P MS Misc 0 NA 3122 Related [asp No: C- rYKfA 4 nUrJAA Pfesiure- ,k(— NL+oras ©. ps;/F-c ACCUMULATOR SYSTEM: Time/Pressure P/F System Pressure 3025 P Pressure After Closure 1750 P 200 PSI Attained 53 P Full Pressure Attained 235 P Blind Switch Covers: All Stations P Niton. Bottles (avg): 6(a)2200 P ACC Mise 0 NA BOP STACK: Quantity Size P/F Stripper 0 NA Annular Preventer 1 -135/8 P - #1 Rams 1 -27/8X5 P #2 Rams 1 -blind P #3 Rams 0 NA . #4 Rams 0 NA #5 Rams 0 NA . #6 Rams 0 NA_ Choke Ln. Valves 1 ' 2 1/16 P _ HCR Valves 1 21/16 P Kill Line Valves 2 ' 2 1/16 P Check Valve 0 NA BOP Misc 0 NA CHOKE MANIFOLD: Quantity P/F No. Valves 8 P Manual Chokes _ 2 P Hydraulic Chokes 0 NA CH Misc 0 NA INSIDE REEL VALVES: (Valid for Coil Rigs Only) Quantity P/F Inside Reel Valves 0 NA Number of Failures: 1 ✓ Test Results Test Time 5 V Remarks: This is a replacement boo stack test report. Initial Integrated BOP test on 4-18-20 had mud cross flange leak on shell fest and catastrophic VBR failure on test #2 that prompted a BOPE manufacture replacment that this report reflects. FaIIIPass on LEL pg sensor was re -calibrated & re -tested with a good les Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.04.01 08:34:07 -08'00' Taylor Wellman By Jody Colombie at 9:39 am, Apr 01, 2020 320-146 X SFD 4/1/2020 401 10-404 No SFD * separate sundry approval required to perforate well. gls DSR-4/1/2020gls 4/1/20 *4000 psi BOP test X 4/2/2020 dts 4/1/2020 JLC 4/2/2020 *test tubing to 1500 psi (15min) .. test cement plug. / Hak 401 *NOTE: Rig work should be hydraulically isolated from reservoir (NOT APPROVED) -MIT-IA 2000 psi new sundry required this sundry by email.*submit CBL data to AOGCC Withhold approval of perforation-related portion of proposed operations until Hilcorp provides perforation intervals. SFD 4/1/2020 4.5" Liner top packer 8691 ft Formation Tops: Formation Depth (MD)Depth (TVD) Sterling Beluga Tyonek TD Well Name & Number:Lease County or Parish:State: Country: Perforations: (MD)(TVD): Angle @KOP and Depth: Angle/Perfs: KOP TVD: Date Completed: Ground level: RKB: Revised by: Kenai Deep Unit #9 Kenai Gas Field, A-028142 500'3º / 100 ft starting @ 500' - 1,600' 0º Alaska 9,177' - 9,195'9,490' - 9,508' Kenai Peninsula Borough USA 21'66'10/23/2008 Kevin Skiba Last Revision Date: February 17, 2011 KOP @ 500' MD/TVD Well built 3o per 100 (500 to 1,600') to ~34º and dropped ~2o per 100 (2,400' to 4,000') to vertical & continued to TD @ 9,850' MD. Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 563 *ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) *Flex-Lock Liner Hanger ~ 8800' MD (Top) *Landing Collar ~ 9689'' MD (Top) *Float Collar @ 9,800' MD (Top) *Float Shoe @ 9,845' MD (Bottom) KDU-9 Pad 41-7 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Permit #:208-1060 API #:50-133-20578-00-00 Prop. Des:A - 028142 KB elevation:87' (21' AGL) WBS #: Latitude:60° 27' 32.71" N Longitude:151° 14' 50.27" W X:274,850.67 Y:2,361,856.78 Spud:7/14/2008 TD:8/5/2008 Rig Released:8/14/2008 12:00hrs PA #: Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" J-55 68 ppf BTC Top Bottom MD 0' 1,675' TVD 0' 1,608' 16" hole Cmt w/ 416 sks (184 bbl) of 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface Intermediate Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 5,668' TVD 0' 5,355' 12-1/4" hole Cmt w/ 346 sks (208 bbls) of 10.5 ppg, class G cmt, 100% returns Liner #1 7" L-80 26 ppf Butt-Mod Top Bottom MD 5,479' 8,955' TVD 5,166' 8,642' 8-1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 8,691' 9,845' TVD 8,378' 9,532' 6-1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held TD 9,850' MD 9,513' TVD PBTD 9,800' MD 9,487' TVD Rubbber section of Pump-Out-Plug @ 9,720' MD Tie-Back Tubing 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 8,691' TVD 0' 8,378' Tagged on (2-15-11) @ 9,706' ELM ACTUAL SCHEMATIC superceded SUPERCEDED ACTUAL STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COM1...�SION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Plug Perforations LI Fracture Stimulate U Pull Tubing U Operations shutdown LI Performed: Suspend ❑ Perforate ❑r Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrill ❑ erforate New Pool ❑ Repair Well ❑ Re-enter Susp Well ❑ Other: Cl 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development ❑✓ Exploratory ❑ 208-106 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,AK 99503 50-133-20578-00 7.Property Designation(Lease Number): 8.Well Name and Number: A-028142 Kenai Deep Unit(KDU)09 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Kenai Gas Field/Beluga/Upper Tyonek Gas Pool-Tyonek Gas Pool 11.Present Well Condition Summary: Total Depth measured 9,850 feet Plugs measured 9,800 feet R E E 0 true vertical 9,513 feet Junk measured 9720 feet MAY 13 ??O1 Effective Depth measured 9,800 feet Packer measured 8,691 feet true vertical 9,465 feet true vertical 8,378 feet r` GCC Casing Length Size MD TVD Burst Collapsetl Structural Conductor 139' 20" 139' 139' 3,060 psi 1,500 psi Surface 1,675' 13-3/8" 1,675' 1,603' 3,450 psi 1,950 psi Intermediate 5,668' 9-5/8' 5,668' 5,334' 5,750 psi 3,090 psi Production Liner scmillek) Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 4-1/2" 12.6#/L-80 8,691'MD 8,378'ND Packers and SSSV(type,measured and true vertical depth) ZXP Liner Pkr;N/A 8,691'MD 8,378'TVD N/A;N/A 12.Stimulation or cement squeeze summary: Intervals treated(measured): Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 35 0 0 15 - Subsequent to operation: 0 2108 0 0 110 14.Attachments(required per 20 AAC 25 070.25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations ❑., Exploratory❑ Development Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil ❑ Gas Q WDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 315-148 Contact Chad Helgeson Email chelgesonc hilcorp.com Printed Name Chad Helgeson Title Operations Manager °7 . Signature / •77/4, Phone 907-777-8405 Date 51(///5— Form 51/ /SForm 10-404 Revised 5/2015 Submit Original Only Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date KDU-09 50-133-20578-00 208-106 4/9/15 4/12/15 Daily Operations: 04/09/2015-Thursday PTW and JSA. Mobe to location and spot equipment. Rig up lubricator. Found pump in sub valve leaking at grease zert. Wait on another one to come out. Pressure lubricator to 250 psi low and 4,000 psi high. Hook high pressure gas line and started pressuring tubing and pressure broke over at 850 psi. Did this to push water back into formation. Tubing dropped to 350 psi. RIH with 4-1/2" CIBP and tie into CBL log sent from town. Ran correlation log and sent to town. Got ok to set plug at 9,472'. Spotted plug at 9,472' and set plug. Lost 200 lbs on wt indicator. Waited 5 min and logged up off plug. Went back down and tagged plug. POOH.TP was 400 psi when plug was set. RIH w/3" x 20' dump bailer full of cement and dumped 10' of cement on top of plug at 9,472'. Est TOC is 9,462'. POOH. Cement in place at 1615 hrs. Rig down lubricator and secure well. 04/10/2015 - Friday PTW and JSA. Rig up lubricator and arm gun. Pressure lubricator to 250 psi low and 4,000 psi high. TP - 350 psi. Note: Waited on crew to run CBL for rig. RIH w/3-3/8" (w/3-1/8" charges) x 20' and tie into CBL log sent from town.Tag TOC at 9,461'. Run correlation log and send to town. Get ok to perforate from 9,198' to 9,138' off correlation log. Spot shot from 9,198' to 9,178'.TP - 350 psi. Fired shot and saw no pressure increase. Tried to pick up tools and maybe made a foot and was stuck. Worked tools to 4,000 lbs and down to 1,500 lbs several times. Pick up to 4,000 lbs and see if it would bleed off. Called town and discussed. Started pressuring well up with gas and when it got to 400 lbs worked tools again. It looked like we were making some footage but when we reached 4,000 lbs tools pulled out of rope socket. POOH and tools had pulled out of rope socket. Rig down lubricator and get ready for slickline. Slickline will be out in morning to fish tools. 04/11/2015 -Saturday PTW and JSA. Mobe to location and spot equipment. Didn't have the right length riser to get above well house with BOP. Wait to get one from shop. PT to 250 psi low and 4,000 psi high.TP- 350 psi. Top of Cement was 9,461'. RIH with 3-1/2" LIB and set down at 9,170' KB WL measurement. Hit down on fish one time and POOH. LIB showed rope socket. Rig down sheeve and string .160 wire. RIH w/ 1-3/8"JDC baited down and latch fish at 9,170'. Tool string wt 800 lbs. Hit 2 jar licks at 1,700 lbs, 1,800 lbs, 2,000 lbs and 1 at 2,100 lbs and came free. Wt indicator showed 1,300 lbs. Thought we had tools. POOH and find the skirt had split. RIH with 1-7/16" OS and catch fish at 9,170'. Beat down and left baited 0/S on fish. POOH. RIH w/4-1/2" GS and latch overshot at 9,170'.Jarred 3 times at 2,100 lbs and spanged up on fish. GS sheared. POOH. RIH w/4- 1/2" GS (steel pin) and latch overshot at 9,170'.Jarred numerous times at 2,100 lbs to 2,500 lbs over tool wt. GS sheared. POOH. Field will try and flow well overnight. I will have Pollard E-line out in morning to perf rest of zone. Rig down lubricator and turn well over to field to try and flow well. TP - 325 psi. 04/12/2015 -Sunday Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date KDU-09 50-133-20578-00 208-106 4/9/15 4/12/15 Daily Operations: PTW and JSA. Mobe to location and spot equipment. Fill test pump with methanol .Rig up lubricator and PT to 250 psi low and 4,000 psi high. Pressure well up to 300 psi. RIH w/2-7/8" x 20' HC Connex, 6 spf, 60 deg phase pert gun and tie into Pollard correlation log dated 4/10/15.Tag fish at 9,168'. Run correlation log and send to town. Get ok to perf from 9,166' to 9,146'. Spot shot and fired gun. Got real good indication of guns firing. Shook lubricator and tubing pressure dropped to 250 psi. Stayed at 250 psi for approx 20 min and then started climbing. POOH.TP -400 psi. Wireline was kinked. Cut line and put new rope socket on. Downloaded 20' gun to 10' gun. RIH w/GPT tool, 2-7/8" x 20' (Loaded with 10' of charges) HC Connex, 6 spf, 60 deg phase perf gun and tie into Pollard correlation log dated 4/10/15. Did not see any fluid in well. Spot shot from 9,146' to 9,136' (per Ops Mgr) and fired gun with TP at 450 psi and BHP 652 psi. No change in pressure. Pick up 24' and monitor. Called town and was told to try and flow well. Bring BHP down to 400 psi. Brought BHP down to 564 psi-TP down to 360 psi.Temp was 150 deg above perf and dropped to 149 deg when we went by perfs. Showed no fluid coming in. POOH. All shots fired. NOTE: Wireline fish still in same spot. Rig down lubricator and turn well over to field. • r KDU-9 Pad41-7 SCHEMATIC 158'FNL, 1,05T FEL, Sec.7, T4N, R11 W, S.M. llilcorp Alaska,LLC Conductor J 20" KT-.5p5 0' 133 ppf PE Permit#: 208-1060 Top Bottom API 9: 50-133-20578-00-00 MD 0' 139' Prop.Des: A-028142 TVD 0' 139' KB elevation: 87' (21'AGL) WBS#: Latitude: 60°27'32.71"N Surface Casing Longitude: 151°14'50.27"W1_, 13-3/8" J-55 68 ppf BTC X: 274,850.67 MD TopO' Bottom1675' Y: 2,361,856.78 Spud: 7/14/2008 TVD 0' 1,608' TD: 8I512008 16"hole Cmt w1416 sks(184 bbl)of Rig Released: 8114/2008 12:00hrs 12.0 ppg,Type 1 cmt,w/(37 bbls)to surface PA#: . I[- JI . Intermediate Casing 9-5/8" L-80 40 ppf BTC KOP(rD 500'MD/TVD -�' Top Bottom MD 0' 5,668' Well built 3°per 100(500 to 1,600')to-34° r I TVD 0' 5,355' and dropped-2°per 100(2,400'to 4,000') L 1 12-1/4"hole Cmt w/346 sks(208 bbls) of 10.5 ppg,class G emt, 100%returns to vertical&continued to TD @ 9,850'MD. . Liner#1 • 7" L-80 26 ppf Butt-Mod Top Bottom Tubing String-4.5",12.6#, L-80,Hydril 563 MD 5,479' 8,955' Casing String-4.5",12.68, L-80,Hydril 563 ND 5,166' 8,642' 8-1/2"hole Cmt w/178 sks(78 bbls)of 12.5 ppg "ZXP Liner Packer with 15'Tieback Extension @ 8,691'MD(Top) class G cmt Lead&177sks(36 bbls)of 15.8 ppg class G Tail "Flex-Lock Liner Hanger-8800'MD(Top) "Landing Collar-9689"MD(Top) "Float Collar @ 9,800'MD(Top) Liner#2 'Float Shoe @ 9,845'MD(Bottom) 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 8,691' 9,845' ND 8,378' 9,532' 6-1/8"hole Cmt wl 89 sks(29 bbls)of 13.5 ppg, class G cmt, (1.5 bbls)cmt to surface,Floats held Tie-Back Tubing 4.1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 8,691' ' ND 0' 8,378' Ig Tagged 30ft fish(spent perf guns)on (4/12/15)@ 9,186'ELM Tvonek Paris: CIBP Set at 9,472'with 10ft of cement. = D2 MD Ft ND Gun Type Date @ 9,462'MD 's D2 9,136'-9,166' 30' 8,823'-8,853' 2-7/8"HC,Connex 6 spf 04/12/2014 02 9,178'-9,198' 20' 8,865'-8,885' 3-3/8"HC,Connex 6 spf 0411012014 D3b 9,490'-9,508' 18' 9,177'-9,195' 3-3/8"Owen's gun,6spf 10/22/2008 Formation Tops: D3b Formation Depth(MD) Depth IND; Sterling Beluga Tagged on(2-15-11) Tyonek @ 9,706'ELM TD TD PBTD -_-- 9,850'MD 9,800'MD Rubbber section of Pump-Out-Plug 9,513'TVD 9,487'TVD @ 9,720'MD Well Name&Number Kenai Deep Unit#9 Lease Kenai Gas Field, A-028142 County or Parish: Kenai Peninsula Borough State: Alaska I Country: I USA Perforations:(MD) 9,490'-9,508' (TVD): 9,177'-9,195' Angle @KOP and Depth 3°1 100 ft starting @ 500'-1,600' Angle/Perfs. 0° KOP TVD: 500' Date Completed 10/23/2008 Ground level: 66' RKB: 21' Revised by. Donna Ambruz Last Revision Date:I May 11,2015 of rye yw��t /bi4s s THE STATE Alaska Oil and Gas �'' �'`� °fALASIc:A Conservation Commission sat.- itt —__ - 333 West Seventh Avenue Anchorage Alaska 99501-3572 wh � GOVERNOR BILL WALKER g Main: 907.279.1433 OA. ALASY'� Fax 907.276.7542 �i,.1.� www.aogcc.alaska goy Chad Helgeson �� Operations Manager 0 g Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Kenai Gas Field, Beluga/Upper Tyonek and Tyonek Gas Pools, KDU 9 Sundry Number: 315-148 Dear Mr. Helgeson: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, / / / 7t.(45L- Cathy :. Foerster Chair DATED this J day of March, 2015 Encl. RECEIVED STATE OF ALASKA MAR 16 2015 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon❑ Plug for Redril ❑ Perforate New Pod❑ Repair We❑ Change Approved Program❑ Suspend❑ Plug Perforations[ • Perforate❑✓ • Pull Tubin❑ Time Extension❑ Operations Shutdowt❑ Re-enter Susp.Wel ❑ Stimulate❑ Alter Casin[] Otter. ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Hilcorp Alaska,LLC Exploratory ❑ Development 0 208-106 . 3.Address. 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service ❑ 6.API Number. Anchorage,Alaska 99503 50-133-20578-00 . 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO 510A , Kenai Deep Unit(IOU)9 Will planned perforations require a spacing exception? Yes ❑ No ❑ 9.Property Designation(Lease Number): 10.Field/Pool(s): (7t/(X e,t-- T7 c,� (�ty,'--- 0...‘,"...s( 7� A-028142 enai Feldk/ .elle C�'ti `LX'( 11. PRESENT WELL CONDITION SUMMARY .. //6,A. Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): 'Plugs(measured): Junk(measured): _ 9,850 • 9,513 • 9,800 9,465 9,800' 9,720' Casing Length Size MD ND Burst Coll.pse Structural Conductor 139' 20" 139' 139' 3,060 psi 1,500 psi Surface 16,75' 13-3/8" 1,675' 1,603' 3,450 psi 1,950 psi Intermediate 5,668' 9-5/8" 5,668' 5,334' 5,750 psi 3,090 psi Production Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 4-1/2" 12.6"/L-80 8,691' Packers and SSSV Type: Packers and SSSV MD(t)end ND(ft): ZXP Liner Packer;N/A 8,691'MD,8,378'ND;N/A;N/A 12.Attachments: Description Summary of Proposal ❑✓ 13.Well Class after proposed work: . Detailed Operations Program n BOP Sketch n Exploratory n Stratigraphin Development n Service n 14.Estimated Date for 15.Well Status after proposed work: 03/31/15 Commencing Operations: Oil ❑ Gas ❑✓. WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Chad Helgeson Phone: 907-777-8405 Email chelaeson( hilcorn.corp Printed Name /Chhhadd Helgeson Title Operations Manager Signature (7./#/4 Phone 907-777-8405Date 3//6/. COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number. --215 -1 I -I D Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Spacing Exception Required? Yes ❑ No Subsequent Form Required: /6 —y ay A, / APPROVED BY Approved by: � .. COMMISSIONER THE COMMISSION A Date: 3-75 -7. 3--f a -I C fI z✓/_` Submit Form and Form 10-403(R=/ed 10/2012) op r�vid a1 icain A la for 12 mon from the date of approval. Attachments in Duplicate RBDMSJ MAR 2 0 2015 ,. 34f,/, , s� 3 - 'de •i Well Prognosis fir Well: KDU 9 Date: 3/13/15 • Hileorp Alaska,LL Well Name: KDU 9 API Number: 50-133-20578-00-00 ' Current Status: Producing Gas Well Leg: N/A Estimated Start Date: 03/31/15 Rig: N/A Reg.Approval Req'd? 10-403 Sundry Number: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-106 First Call Engineer: Chad Helgeson (907)777-8405 (0) (907)229-4824 (C) Second Call Engineer: Stan Porhola (907)777-8412 (0) (907)331-8228(C) AFE Number Estimated Current Bottom Hole Pressure: 448 psi at 9,400 TVD (Based on static pressure survey Feb. 2015) Max. Anticipated Bottom Hole Pressure D2 Sand: 500 psi (Based on offset wells) Brief Well Summary: KDU 09 was drilled in 2008 as a Tyonek D sand producer from Pad 41-07.The current completion in the D-3C sand has reached its productive limit in 4.5"tubing (current rate 50 mcf at 16 psi), and any remaining reserves will be captured by offset producers. Objective: • Set 4-1/2"CIBP above the D-3C sands and cap with cement • Add perforations in the Tyonek D-2 Sand (determine if flowable rate) Plugback D-2 Sand if non- commercial and Perforate the Tyonek D-1 Sand (potential high pressure). E-Line Procedure 1. MIRU e-line and pressure control equipment. PT lubricator to 250 psi low/4,000 psi high. 2. Pressure well with gas pressure from nearby well to 1,000 psi. (push any water back into reservoir). 3. MU and RIH with 4-1/2"CIBP. Set CIBP at±9,480' MD. Cap with 10'of cement. POOH. 4. Bleed pressure on well down to 400 psi. 5. Perforate the Tyonek D-2 sand with 3-3/8" 6 SPF 60 deg phased perforating gun. Send the correlation pass to Chad Helgeson,Jeremy Mardembak, and Jacob Dunston for confirmation. Proposed Gross Perforated Interval (Tentative) Sands Top(MD) Btm (MD) FT Tyonek D-2 ±9,135' ±9,205' ±70' �c- Tic), 6. RDMO E-line. 3-/6F,i�� 7. Turn over to production. a. Flow well and determine if achieved commercial gas rate. b. If commercial,flow well and submit 404 report. If not commercial, complete contingency procedure below. Well Prognosis Well: KDU 9 Date: 3/13/15 Ilihot1,4laska.1,1. Contingency for D1 Sand Max. Anticipated Bottom Hole Pressure D1 Sand: -4,850 psi (Based on original undepleted sands) Max. Anticipated Surface Pressure D1 Sand: -3,910 psi (Based on max BHP and 0.10 psi/ft ga gradient to surface, no fluid in the well). 8. MIRU e-line and pressure control equipment. PT lubricator to 250 psi low/4,500 psi high. 9. MIRU N2 Pumping unit, PT hardline to 4,500 psi. 10. Pressure well up to 500 psi surface pressure with N2 (Push water into formation). 11. MU and RIH with 4-1/2" CIBP. Set CIBP at±9,130' MD. Cap with 10' of cement. POOH. 12. Pressurize well with nitrogen. Obtain final pressure from PE to establish a drawdown on the formation (estimate 30%drawdown) approximately 2500 psi surface pressure. K- 13. Perforate the Tyonek D sands with 3-3/8" 6 SPF 60 deg phased perforating gun. Send the correlation pass to Chad Helgeson,Jeremy Mardembak, and Jacob Dunston for confirmation. Proposed Gross Perforated Interval (Tentative) Sands Top (MD) Btm (MD) FT Tyonek D-1 ±8,984' ±9,113' ± 129' $� � ' 7 'rc. _l 6d 14. POOH. 15. RD e-line. /' �; • lGr�/� 16. Turn well over to production. 17. Flow well through test separator and record water and gas rates. Attachments: 1. As-built Well Schematic 2. Proposed Well Schematic KDU-9 ACTUAL Pad 41-7 158'FNL, 1,057'FEL, SCHEMATIC Sec.7, T4N, R11W, S.M. Flileorp Alaska.LLC __ .._ L Conductor J 20" Top ppf PE Permit#: 208-1060 Top Bottom API 8: 50-133-20578-00-00 MD 0' 139' Prop.Des: A-028142 ND 0' 139' KB elevation: 87' (21'AGL) WBS#: • Latitude: 60°2T 32.71"N Surface Casing Longitude: 151°14'50.27"W 13-318" J-55 68 ppf BTC X: 274,850.67 Top Bottom Y: 2,361,856.78 MD 0' 1,675' Spud: 7114/2008 TVD 0' 1,608' TD: 8/5/2008 16"hole Cmt w/416 sks(184 bbl)of Rio Released: 8114/2008 12:O0hrs 12.0 ppg,Type 1 cmt,w/(37 bbls)to surface PA#: - Intermediate Casing 9-5/8" L-80 40 ppf BTC KOP(d)500'MD/TVD .10.. Top Bottom MD 0' 5,668' I Well built 3°per 100(500 to 1,600')to-34°Well 0' 5,355' and dropped-2°per 100(2,400'to 4,000') __ 12-1/4"12-1/4"hole Cmt w/346 sks(208 bbls) of 10.5 ppg,class G cmt, 100%returns to vertical&continued to TD @ 9,850'MD. Liner#1 1 7"1:. :'14 L-80 26 ppf Butt-Mod N Top Bottom Tubing String-4.5",12.6#, L-80,Hydril 563 g MD 5,479'Cmt w/1788,8,642' sks955'(78 bbls)of 12.5 ppg Casing String-4.5",12.6#, L-80,Hydril 563 } � 8-112"D hole5,166' 'ZXP Liner Packer with 15'Tieback Extension @ 8,691'MD(Top) class G cmt Lead 8 177sks(36 bbls)of 15.8 ppg 'Flex-Lock Liner Hanger-8800'MD(Top) class G Tail • 'Landing Collar-9689"MD(Top) 'Float Collar @ 9,800'MD(Top) Liner#2 *Float Shoe @ 9,845'MD(Bottom) 4-1/2" L-80 12.6 ppf Hydril 563 i Top Bottom . • MD 8,691' 9,845' ND 8,378' 9,532' 6-1/8"hole Cmt wl 89 sks(29 bbls)of 13.5 ppg, • class G cmt, (1.5 bbls)cmt to surface,Floats held Tie-Back Tubing 4-112" L-80 12.6 ppf Hydril 563 Top Bottom • MD 0' 8,691' ND 0' 8,378' . i ! • a Tagged on(2-15-11) '' @ 9,706'ELM , i A Active Tvonek Perls: Rubbber section of Pump-Out-Plug ' 9,720'MD otRA MD TVD Gun Type Date @ C / D3b 9,490'-9,508' 18' 9,177'.9,195' 3-3/8"Owen's gun,6spf (10/22/2008) Formation Tops: w . t Formation Depth(MD) Depth(ND) . , - 3 •(e ' l‹.--- Sterling - -- r Beluga ', -) • .• Tyonek TD TD PBTD 9,850'MD 9,800'MD 9,513'TVD 9,487'TVD Well Name&Number Kenai Deep Unit#9 Lease Kenai Gas Field, A-028142 County or Parish: Kenai Peninsula Borough State: Alaska I Country: I USA Perforations:(MD 9,490'-9,508' (TVD): 9,177'-9,195' Angle©KOP and Depth 3°/100 ft starting @ 500'-1,600' Angle/Perfs. 0° KOP TVD:_ 500' Date Completed 10/23/2008 Ground level: 66' RKB: 21' Revised by: Kevin Skiba Last Revision Date February 17,2011 KDU-91:1 PROPOSED Pad 41-7 158'FNL, 1,057'FEL, SCHEMATIC Sec.7, T4N, R11W, S.M. Ililcorp Alaska,LI-(. Conductor J [ L 20" Top ott ppf PE -55 Permit#: 208-1060 Top Bottom API#: 50-133-20578-00-00 MD 0' 139' Prop.Des: A-028142 ND 0' 139' KB elevation: 87' (21'AGL) WBS#: Latitude: 60°27'32.71"N Surface Casing Longitude: 151°14'50.27"W 13-3/8" J-55 68 ppf BTC X: 274,850.67 Top Bottom Y: 2,361,856.78 MD 0' 1,675' Spud: 7/14/2008 TVD 0' 1,608' TD: 8/5/2008 16"hole Cmt w1416 sks(184 bbl)of Rig Released: 8/14/2008 12:00hrs 12.0 ppg,Type 1 cmt,wl(37 bbls)to surface PA#: • I.. �i 1 Intermediate Casing 9-5/8" L-80 40 ppf BTC KOP @ 500'MD/TVD Top Bottom l MD 0' 5,668' Well built 3°per 100(500 to 1,600')to-34°Well 0' 5,355' and dropped-2°per 100(2,400'to 4,000') 12-1/4"hole Cmt w/346 sks(208 bbls) to vertical&continued to TD @ 9,850'MD. �_ of 10,5 ppg,class G cmt, 100%returns Liner#1 7" L-80 26 ppf Butt-Mod • ' Top Bottom ,Tubing String-4.5",12.64, L-80,Hydril 563 ' • MD 5,479' 8,955' Casing String-4.5",12.64, L-80,Hydril 563 TVD 5,166' 8,642' 8-1/2"hole Cmt WI 178 sks(78 bbls)of 12.5 ppg 'ZXP Liner Packer with 15'Tieback Extension @ 8,691'MD(Top) • class G cmt Lead&177sks(36 bbls)of 15.8 ppg 'Flex-Lock Liner Hanger-8800'MD(Top) • class G Tail 'Landing Collar-9689"MD(Top) • 'Float Collar @ 9,800'MD(Top) Liner# 'Float Shoe @ 9,845'MD(Bottom) 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 8,691' 9,845' • TVD 8,378' 9,532' • 6-1/8"hole Cmt w/89 sks(29 bbls)of 13.5 ppg, class G cmt, (1.5 bbls)cmt to surface,Floats held Tie-Back Tubing 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 8,691' ND 0' 8,378' ,II Si % t ; • kt c k C.c.s 3“.....4- Tagged on(2-15-11) @ 9,706'ELM 1 D Z ryon.k Ihrfa: Rubbber section of Pump-Out-Plug • ' (' f31'1 @ 9,720'MD 01 8,984'-9,113' 129' 8,671'-8,800' 3-3/8"HC,6 SPF Proposed • a- 02 9,135'-9,206' 71' 8,822'-8,893' 3-318"HC,6 SPF Proposed D3b 1,410'•8,601' ti' 8,177'.9,115 3318"Owen's gun,6spf 10/22/2008 Formation Tops: c Formation Depth(MD) Depth(TVD) + Sterling I *- ' Beluga Tyonek TD TD PBTD 9,850'MD 9,800'MD 9,513'TVD 9,487'TVD Well Name&Number Kenai Deep Unit#9 Lease Kenai Gas Field, A-028142 County or Parish: Kenai Peninsula Borough State: Alaska I Country: I USA • Perforations:(MD) 9,490'-9,508' (TVD): 9,177'-9,195' Angle @KOP and Depth 3°/100 ft starting @ 500'-1,600' Angle/Perls. 0° KOP TVD: 500' Date Completed 10/23/2008 Ground level. 66' RKB: 21' Revised by: Donna Ambruz Last Revision Dater March 16,2015 Davies, Stephen F (DOA) From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Wednesday, March 18, 2015 9:06 AM To: Davies, Stephen F (DOA) Cc: Donna Ambruz Subject: RE: KDU 9 (PTD #208-106) Pool Assignments Thanks, Good catch, I will be more diligent as I put more of these together for Kenai Gas Field. Chad From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Wednesday, March 18, 2015 9:02 AM To: Chad Helgeson Cc: Donna Ambruz Subject: RE: KDU 9 (PTD #208-106) Pool Assignments Chad, I made the changes on Hilcorp's current Sundry application form, so a corrected form is not needed. Thanks for your help, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7th Avenue,Suite 100 Anchorage,AK 99501 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Chad Helgeson [mailto:chelgeson@hilcorp.com] Sent: Wednesday, March 18, 2015 12:16 AM To: Davies, Stephen F (DOA) Cc: Donna Ambruz Subject: RE: KDU 9 (PTD #208-106) Pool Assignments Steve, You are correct. I made some assumptions and copied a similar form for a goby, without talking to our geoscience staff and made a mistake on which pool these zones were part of. Do you want resubmit a new coversheet (corrected)for the Sundry or you can mark it up, if you want? I am easy either way with this, I am not in a huge hurry to do this job this week, so I can resubmit you a new cover page. Let me know your preference. 1 Chad From: Davies, Stephen F (DOA) [mailto:steve.daviesOalaska.gov] Sent: Monday, March 16, 2015 5:17 PM To: Chad Helgeson Subject: KDU 9 (PTD #208-106) Pool Assignments Chad, For KDU 9, my well log correlations indicate: • Hilcorp's proposed Tyonek D1 perforations will lie within the Beluga/Upper Tyonek Gas Pool as defined in CO 510A, • the proposed Tyonek D2 perforations will lie within the Tyonek Gas Pool as defined in CO 510A, • the existing Tyonek D3 perforations lie within the Tyonek Gas Pool as defined in CO 510A, and • contrary to Box 10 on Hilcorp's Sundry Application, none of these perforations lie within the Deep Tyonek Gas Pool as defined in CO 510A. Please check with your geoscience team, and let me know if I've missed something. Thanks, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7th Avenue,Suite 100 Anchorage,AK 99501 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov. 2 • Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. Q0 8 - 1 0 (0 Well History File Identifier Organizing (done) ❑ Two -sided 11111111111111111 ❑ Rescan Needed III 11111111 IIIItI ; SAN DIGITAL DATA OVERSIZED (Scannable) C for Items: ❑Diskettes, No. ❑Maps: Greyscale Items: ❑Other, No/Type: er Items Scannable by a Large Scanner roa m p 0 N ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) 1-06-5 ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: Maria _ Date: Ltiii ! / /s/ nIF Project Proofing I MI BY: Maria Date: , /s/ Scanning Preparation x 30 = c? + I it = TOTAL PAGES 1 ( / J unt does not include cover sheet) i ji . BY: Date: /s/ Production Scanning 1111E1111 I II III Stage 1 Page Count from Scanned File: 1 q 6 (Count does include cover heet) Page Count Matches Number in Scanning Preparation: 1/ YES NO BY: drig. Date: )4/ I, /s/ Me Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. I IIIJ 1 111 ReScanned III I1IIIIIIIIII BY: Maria Date: /s/ Comments about this file: Quality Checked III 1111111111 lI 10/6/2005 Well History File Cover Page.doc DATA SUBMITTAL COMPLIANCE REPORT 3/31/2011 Permit to Drill 2081060 Well Name /No. KENAI DEEP UNIT 9 Operator MARATHON OIL CO API No. 50- 133 - 20578 -00 -00 MD 9850 TVD 9513 Completion Date 10/23/2008 Completion Status 1 -GAS Current Status 1 -GAS UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: Quad Combo, Multi Formation Test, Cement Bond Log, Gamma Ray, (data taken from Logs Portion of Master Well Data Maint III Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / Ty .e Med /Frmt Number Name Scale Media No Start Stop CH Received Comments 'pt Report: Final Well R Open 11/28/2008 Final Well Report, Mud Equip and Crew, Well Data, Geo Data, Drilling Data, Daily Reports ED C Las 17214duction /Resistivity 8950 9855 Open 11/28/2008 Final Well Report, Mud Equip and Crew, Well Data, Geo Data, Drilling Data, Daily Reports g - Mud Log 2 Col 165 9850 Open 11/28/2008 MD Formation Log Lg Mud Log 2 Col 165 9850 Open 11/28/2008 TVD Formation Log o�g Mud Log 2 Col 165 9850 Open 11/28/2008 MD Gas Ratio ,og Mud Log 2 Col 165 9850 Open 11/28/2008 MD Drilling Dynamics • Log: Mud Log 2 Col 165 9850 Open 11/28/2008 TVD Drilling Dynamics Log 7 Formation Micro Ima 5 Blu 8954 9808 Open 11/28/2008 MD Formation Tester Log / Cement Evaluation 2 Blu 8700 9514 Case 11/28/2008 Dual Radial Cement Bond, GR, CCL g Sonic 2 Col 8954 9835 Open 11/28/2008 Comp Sonic 'Cog Neutron 2 Col 8954 9808 Open 11/28/2008 Comp Photo Dens, Dual Spaced Neut Log Neutron 5 Col 8954 9835 Open 11/28/2008 Dens Neut Sonic Water Sat !_o Induction /Resistivity 25 Col 8642 9535 Open 11/28/2008 TVD Array Induction DATA SUBMITTAL COMPLIANCE REPORT 3/31/2011 Permit to Drill 2081060 Well Name /No. KENAI DEEP UNIT 9 Operator MARATHON OIL CO API No. 50- 133 - 20578 -00-00 MD 9850 TVD 9513 Completion Date 10/23/2008 Completion Status 1 -GAS Current Status 1 -GAS UIC N i og Induction /Resistivity 25 Col 8954 9845 Open 11/28/2008 Array Induction RTAP Processed Log See Notes 25 Col 8955 9845 Open 11/28/2008 MD Compact Triple Combo quicklook Log Induction /Resistivity 25 Col 8955 9845 Open 11/28/2008 MD Array Induction RTP • Vecto Processing Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments Cores and /or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 6/30/2008. ADDITIONAL INFORMATION Well Cored? (I� Daily History Received? / N Chips Received? Y LN— Formation Tops N Analysis Received? Comments: Compliance Reviewed By: _ Date: • Marathon Oil Company Alaska Asset Team M Marathon P.O. Box 1949 Kenai, AK 99611 THON OBI Company Telephone 907/283 -1371 Fax 907/283 -1350 November 18, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -421 Gas Well Open Flow Potential Test Report Field: Kenai Gas Field Well: Kenai Deep Unit #9 Dear Mr. Maunder: Enclosed for your records is the Gas Well Open Flow Potential Test Report, 10 -421, for KDU -9 well. The information provided in this report is based on four points of production data collected over a two day period. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, 1 3/ / Kevin J. Skiba Engineering Technician Enclosures: 10 -421 Open Flow Report cc: Houston Well File Kenai Well File KJS o STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMMINPON GAS WELL OPEN FLOW POTENTIAL TEST REPORT 1a. Test: U Initial Li Annual Li Special 1b. Type Test: L Stabilized U Non Stabilized U Multipoint ❑ Constant Time ❑ Isochronal ❑ Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Oil Company 10/22/2008 208 - 1060 3. Address: 6. Date TD Reached: 12. API Number: PO BOX 1949 Kenai, Alaska 99611 - 1949 8/5/2008 50 133 - 20578 - 00 - 00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. 87' above MSL, (21' KB AGL) Kenai Deep Unit #9 Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 1,015' FNL, 2,267' FEL, Sec. 7, T4N, R11W, S.M. 9,800' MD 9,465' TVD Total Depth: 9. Total Depth (MD + TVD): Kenai Gas Field / Deep Tyonek Pool 1,017' FNL, 2,266' FEL, Sec. 7, T4N, R11W, S.M. 9,850' MD 9,513' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 274,850.67 y- 2,361,856.78 Zone- 4 A - 028142 TPI: x- 273,659.00 Y 2,361,148.00 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 273,660.40 Y 2,361,146.60 Zone- 4 Monobore Completion 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: From To 4.500" 12.6ppf, L - 80 3.958 9,845' 9,490' 9,508' 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. 4.500" 12.6ppf, L - 80 3.958" 8,691' 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid G 4 Y P tY 9 (G): ( ) 8,691' MD - - 0.563 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): Q Tubing ❑ Casing 150.5 F 3,982 psia @ Datum 9,069' TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N % H Prover: Meter Run: Taps: 9,475' MD 9,156' TVD 0.56 0.330 0.538 0 Facility 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line )( Orifice psig Hw F psig F° psig F Hr. Size (in.) Size (in.) 1. 3.826 X 1.000 2,594 70 40 - - - - 13.00 2. 3.826 X 1.000 3,256 70 48 - - - - 4.00 3. 3.826 X 1.000 3,256 70 42 - - - - 17.70 4. 3.826 X 1.000 4,005 70 50 - - - - 2.80 5. Basic Coefficient Flow Temp. Super Comp. � Pressure Gravity Factor Rate of Flow No. (24-Hour) - 1/ wPm Pm Factor F Factor Q Mcfd Fb or Fp Ft g Fpv 1. 49.02199215 52.9150 2,609 1.00 0 1.1547 2,594 2. 56.17133653 57.9655 3,271 1.00 0 1.1215 3,256 3. 60.04968464 54.2218 3,271 1.00 0 1.1287 3,256 4. 67.6968558 59.1608 4,020 1.00 0 1.0847 4,005 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 3.88 500 1.46 0.750 0.56 N/A 2. 4.86 508 1.48 0.795 3. 4.86 502 1.46 0.785 Critical Pressure 673.1 4. 5.97 510 1.49 0.850 Critical Temperature 343.2 5. Form 10 -421 Revised 1/2004 1. ktitqlgC ONT VERSE SIDE 9 Submit in Duplicate Pc 3,371 pc 11361281.42 I 0 • Pf No. Pt Pt Pc Pw Pw Pc Ps Ps Pf -Ps 1. 3,292 10834959.7 2. 3,273 10710238.0 3. 3,255 10592746.6 4. 3,239 10488853.8 5. 25. AOF (Mcfd) 35,631 n 0.857 Remarks: I hereby certify that the foregoing is true and cor ect to the best of my knowledge. Signed Title Engineering Tecnician Date 11/18/2008 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd /psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor = dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air= 1.000), dimensionless Gg Specific gravity of separator gas (air= 1.00), dimensionless GOR Gas -oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back - pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut -in wellhead pressure, psia Pf Shut -in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10 -421 Revised 1/2004 Side 2 ti • • Marathon Oil Company Alaska Asset Team M Marathon P.O. Box 1949 Kenai, AK 99611 MARATHON OBI Company Telephone 907/283 -1371 Fax 907/283 -1350 November 18, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -407 Well Completion Report and Log Field: Kenai Gas Field Well: Kenai Deep Unit #9 Dear Mr. Maunder: Submitted for your records is the Well Completion Report and Log for KDU -9 well. KDU -9 is a new well which was drilled into the Tyonek formation and completed on October 22, 2008. Work on this well was performed under Sundry #308 -367 and the original Permit to Drill. Please contact me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, °e/Ailfrti- /2(..610"/‘ Kevin J. Skiba Engineering Technician Enclosures: 10 -407 Well Completion Report & Log cc: Houston Well File Reference Attachment List Kenai Well File KJS • STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMMMION WELL COMPLETION OR RECOMPLETION REPORT AND LOG Oil ❑ Gas 0 Plugged ❑ Abandoned ❑ Suspended ❑ 1b. Well Class: 20AAC25.105 20AAC25.110 Development 0 Exploratory GINJ❑ WINJ ❑ WDSPL WAG ❑ Other No. of Completions: 1 Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill #: 208 - 1060 Marathon Oil Company Aband.: 10/4/2008 Sundry #: 308 -367 3. Address: PO Box 1949 6. Date Spudded: 13. API Number: Kenai Alaska, 99611 - 1949 7/2008 50 133 - 20578 - 00 - 00 4a. Location of Well (Governmental Section): 7. Date TD Reached: a fr 14. Well Name and Number: Surface: 158' FNL, 1,057' FEL, Sec.7, T4N, R11W, S.M. 81&2008 Kenai Deep Unit #9 Top of Productive Horizon: 8. KB (ft above MSL): 21' 15. Field /Pool(s): 1015' FNL, 226T FEL, Sec.7, T4N, R11W, S.M. Ground (ft MSL): 66' Total Depth: 9. Plug Back Depth(MD +TVD): Kenai Gas Field / Deep Tyonek Pool 1017' FNL, 2266' FEL, Sec7., T4N, R11W, S.M. 9,800' 9,465' 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 274,850.67 y- 2,361,856.78 Zone- 4 9,850' 9,513' A - 028142 TPI: x- 273,659.00 y- 2,361,148.00 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 273,660.40 y- 2,361,146.60 Zone- 4 NA 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Quad Combo, Multi Formation Test, Cement Bond Log, Gamma Ray, Casing Collar Locator 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 20" 133 K -55 0' 139' 0' 139' Driven NA NA 13 -3/8" 68 J -55 0' 1,675' 0' 1,603' 16" 416 sks, Type 1 83.7 sks 9 -5/8" 40 L -80 0' 5,668' 0' 5,334' 12 -1/4" 346 sks, Class G NA 7" 26 L -80 5,479' 8,955' 5,145' 8,621' 8 -1/2" 355 sks, Class G NA 4 -1/2" 12.6 L -80 8,691' 9,845' 8,357' 9,508' 6 -1/8" 89 sks, Class G 4.5 sks 23. Open to production or injection? Yes 0 No If Yes, list each 24. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) MD TVD Gun 4-1/2" (Tie -back) 8,691' 8,691' 9,490'- 9,508' 9,156'- 9,174' 3 -3/8 ", 6spf 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED NA NA 26. PRODUCTION TEST Date First Production: 10/23/2008 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: 11/15/2008 24 Test Period lo. 0 7,900 6.4 64/64 100% Gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 3,089 - 24 -Hour Rate — 0 7,900 6.4 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. . s Form 10 -407 Revised 2/2007 I l" CbNTINUED ON REVERSE ; ` t. I1t A 008 ' ‘ i_ �-„ J) b�- j f > v i 28. GEOLOGIC MARKERS (List all formations and marikncountered): 29. FORMATION TESTS NAME MD TVD Well tested? UYes UNo 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 Pressure test (MFT) data summary attached. Tops in red are estimated from full mudlog data. Tops in black are from open hole log data. Only gas moitoring occurred above 5675' MD. No other sands were distinguishable in the data available. Lower Beluga 6327.00 6014.00 Top Tyonek 7420.00 7107.00 Tyonek 75 -8 7730.00 7417.00 Tyonek 76 -7 7822.00 7509.00 Tyonek D1 8996.00 8683.00 Tyonek D2 9131.00 8818.00 Tyonek D3 9422.00 9109.00 Tyonek D4 9571.00 9258.00 Tyonek D5 9690.00 9377.00 Tyonek D6 9740.00 9427.00 Formation at total depth: Tyonek D6 9850 9537 30. List of Attachments: Quad Combo, Multi Formation Test, Cement Bond Log, Gamma Ray, Casing Collar Locator 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: itomao _ Phone: (907) 283 -1372 Date: November 18, 2008 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 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 • • KDU -9 Permit #: 208 -1060 P 50- 13378 -00 -00 Pad 41 -7 Prop. Des: A- 028181 42 2 158' FNL, 1,057' FEL, KB elevation: 87' (21' AGL) WBS #: Sec.7, T4N, R11W, S.M. MARATNON Latitude: 60° 27' 32.71" N Longitude: 151° 14' 50.27" W X: 274,850.67 I Y: 2,361,856.78 J Conductor K -55 Spud: 7/14/2008 20" 133 ppf PE TD: 8/5/2008 Top Bottom Rig Released: 8/14/2008 12:00hrs MD 0' 139' PA #: TVD 0' 139' Surface Casing 13 -3/8" J -55 68 ppf BTC Top Bottom KOP 500' MD /TVD MD o' 1,675' TVD 0' 1,603' 16" hole Cmt w/ 416 sks (184 bbl) of Well built 3 to (500 100 er p ( 12.0 ppg, Type 1 cmt, w/ (37 bbls) to surface 1600') to -34° and dropped -2 per 100 (2,400' to 4,000') to vertical & continued to Intermediate Casing 9 - 5 /8" L - 80 40 ppf BTC TD @ 9,850' MD. Top Bottom 'k MD 0' 5,668' TVD 0' 5,334' 12 -1/4" hole Cmt w/ 346 sks (208 bbls) Tubing String - 4.5 ", 12.6 #, L -80, Hydril 563 of 10.5 ppg, class G cmt, 100% returns Casing String - 4.5 ", 12.6 #, L -80, Hydril 563 ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) Liner #1 `Flex -Lock Liner Hanger - 8800' MD (Top) 7" L -80 26 ppf Butt -Mod Landing Collar - 9689" MD (Top) Top Bottom `Float Collar © 9,800' MD (Top) MD 5,479' 8,955' `Float Shoe © 9,845' MD (Bottom) TVD 5,145' 8,621' 8 -1/2" hole Cmt w/ 178 sks (78 bbls) of 12.5 ppg class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4 -1/2" L -80 12.6 ppf Hydril 563 Top Bottom MD 8,691' 9,845' TVD 8,357' 9,508' ijit 6 -1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held Tie -Back Tubing 4 -1/2" L -80 12.6 ppf Hydril 563 Top Bottom MD 0' 8,691' TVD 0' 8,357' Rubbber section of Pump- Out -Plug . @ 9,720' MD Active Tyonek Perfs: G c MD Ft TVD Gun Type Date D3b 9,490'- 9,508' 18' 9,156'- 9,174' 3 -3/8" Owen's gun, 6spf (10/22/2008) Formation Tops: Formation Depth (MD) Depth (TVD) Sterling Beluga „ ,_�/ - Tyonek TD TD PBTD 9,850' MD 9,800' MD 9,513' TVD 9,465' TVD Well Name & Number: Kenai Deep Unit #9 Lease Kenai Gas Field, A- 028142 County or Parish: Kenai Peninsula Borough State: Alaska 1 Country: I USA Perforations: (MD) 9,490' - 9,508' (TVD): 9,156' - 9,174' Angle @KOP and Depth: 3°1100 ft starting @ 500' - 1,600' Angle /Perfs: 0° KOP TVD: 500' Date Completed: 10/23/2008 Ground level: 66' RKB: 21' Revised by Kevin Skiba Last Revision Date:I October 31, 2008 . • � �,� Operations Summary Report Well Name: KENAI DEEP UNIT 9 Qtr,Qtr,Bbck, Sec. TOW , Ratge F 11Nane Lice ISE No. GlakProul,ce COI kW SEC 7, T4N, R11 W, S.M. KENAI 208 -106 ALASKA USA Casltg Ftdige Eieualiot (fp Grot ICI Eklettol (fq kH- Ca61Ig F131ge DlStiece ® KB- GroerdDistance OD SpudDaE Rlg Re lease DoE 64.37 22.63 7/14)2008 Daily Operations Report Date: 71131200$ Job Category: DRILLING 24 HrStmmary Accept rig FMU 12 -17 1@ 09:00hrs. Move rig. RN Rig. Oita StartTtne EldTtne Dtr(Yr$ OpaCode ActknuCede SUDS Trotbk Code Canmett 09:00 12:00 3.00 RURD RIG AF Accept rig FMU12 -17 09:00hrs. MIRU, PJSM; Move sub base off well lower move to KDU -9, spot sub,pits, and pump room. 12:00 00:00 12.00 RURD RIG AF PJSM; Set gen. house,water tank, parts house, mech. shop, mud boat, carrier, parts house. Fold wings down on sub base, and scope up. Spot carrier, and level. PJSM; Raise derrick, stand up hand rails for bolier„ boiler house,and pump room. Pull pits, pump room together.Install pop offs. Set up camps, and run Iines.Fill cmp water, Unload trailers. 00:00 06:00 6.00 RURD RIG AF PJSM; With crane operator, set fuel tank, panic line, flow line , stairs, windwalls, dog house, choke house, gray iron, gas buster, back landing. Install skirt on pallet lift in pits. Report Date: 7114120018 Job Category: DRILLING 2t H r Summary RN GD -1 , NN Diverter ops SOrtTlne Etd Tine 0 t r (rs) Ops Code Ad:Li /code Sins Trotbk Code Came It 06:00 12:00 6.00 RURD RIG AF PJSM. Prep derrick and scope up. Secure derrick with guide wires. RN service lines. Run water and air around rig. Fire up boiler. Pull wires for doghouse and choke house. RN drawworks brake linkage. RN drillers' console. RN choke line to gasbuster. Spot catwalk, Centrifuge Van and pump #3. PJSM. RN beaver slide and stairs. Install trip tank pump. Install dresser sleeves. PJSM. PN and install "T -bar" for top drive and lay out torque tube on catwalk. Install cylinder socks. RN shock hoses. 12:00 00:00 12.00 RURD RIG AF PJSM: Hang torque tube, install turnbuckles, and adjust. Fill pits, mix spud mud, Recieved 2890 gals. fuel. Work on gaitronics. PJSM; Pick up top drive replace compensater.Rig up pump #3.PJSM; Change out saver sub, repair EPOCH RPM line. Rig up floor hang pipe tongs, spinners, mud manifold. Install bales, elavators, test drive top drive. 00:00 06:00 6.00 NUND ROPE AF PJSM; Test ESD'S, Cut 20" conductor 6 1.12" AGL ,Install 21 1 /4" X 20" SOW starter head. Tested starter head to 300 psi for 10 min., Welded in 2" nipple and instal valve. Set diverter stack in place, nipple up. Report Date: 711512008 Job Category: DRILLING 24 H r Summary Test diverter, Rig inspection, Prep. rig floor, ao gas det. light, PN (54) Jts.5" DAP, PN (21) Jts. Hd4DP, PN BHA, Clean out Conductor, 29' -165', Drill F1165-325' ops StartTtne EtdTtne Dtr rs) Opa Code Acziticc a Stalls Trotbk Code Commit 06:00 09:00 3.00 NUND ROPE AF Function test Diverter knife valve.OK 09:00 10:00 1 .00 INSPCT RIG AF Perform rig inspection. 10:00 12:00 2.00 PULD DP AF PJSM;Prep.to pick up drill pipe, work on rig floor alarms. 12:00 13:00 1.00 REPAIR RIG TA MSOT PJSM;Change out gas detector light bar on rig floor, add 1 jt. to diverter, performance test on diverter stack. 13:00 18:30 5.50 PULD DP AF J ; lc up rl ac 5 rill pipe. (54joints) Pick up drift std. back 5" I-M DP 21 joints. 18:30 19:30 1.00 PULD BHA AF PJSM. Pick up 16" bit and mud motor.HVbDP 1 9:30 23:00 3.50 DRILL ROT AF Spud well 19:30hrs 7'14/2008.. Clean out 20" conductor from 29' to 165'. 23:00 01:30 2.50 DRILL ROT AF PJSM;Drill F1165' to 223' CBUX2 ART =1 .0hrs 570GPM 550psi 3ORPM TQ 1.5K Ft-lb WOB 1 -5K. 01:30 02:00 0.50 TRIP DP AF PJSM; POOH F1223' to 45' . 02:00 03:30 1 .50 PULD BHA AF PJSM; Make up BHA- Picked up WAD, (3) CSMDP, (3) X- avers, Shock sub, to 186' 03:30 04:00 0.50 WASH FILL AF Wash and ream down from 186' to 223'. 04:00 06:00 2.00 DRILL ROT AF Drill F/223' to 325' Up wt =36K Dn wt. =36K Rt wt. =36K RPM =30 , 540 GPM, 900psi ,Tq =1 .8K Ft-lb ART =1 .8hrs. www.peloton.corn Report Printed: 11118/2008 • • A,� Marathon Operations Summary Report Oil Well Name: KENAI DEEP UNIT 9 Caslig Fmnge EkI=1 (t9 Grotsd Ekietlor (fp 1® -Casing Mange Dgtance (rq 1® -G roeedDistance (11) Sprd Dat RIg Release Dap 64.37 22.63 7/14t2008 Daily Operations Report Date: 7M6/2008 Job Category: DRILLING 24 H r Summaq Drill F- 325' - 1032', Trouble shoot and fix PLC problem, Drill F- 1032'- 1425' ops L StartTlne End Time Our (Irs) OpsCOde A.c1Lrkicoce Stays Trosbk Came nt 06:00 12:00 6.00 DRILL ROT AF Directionaly Drill 16" hole F- 325' -664' Up wt. =54K Dn wt. =52K Rt.wt. =54K Tq =3 -4K Art. =1 .6 Ast 1 .3 Note having problems with signal from mwd tool. Replace transducer to AND unit. no change. Check mud pump suction strainers with no change in signal. Change to back up sara 2 processer, Signal cleaned up 12:00 20:00 8.00 DRILL ROT AF PJSM; Direct. Drill F- 664' -1032' Up wt. =65K Dn. wt =65K Rt. wt =63K Tq. =3 -4K Art. =1 .3 Ast= 2.6 No gains No losses 20:00 22:00 2.00 REPAIR RIG TA MSPW PJSM;Troubleshoot and correct PLC. 22:00 00:00 2.00 DRILL ROT AF Direct. Drill F- 1032' -1125' Up wt =65K Dn wt =65K Rt wt. =63K Tq. =3 -4K Art =.3 Ast= 1 .1 No gains No losses 00:00 06:00 6.00 DRILL ROT AF Direct. Drill F- 1125'- 1425'Up wt. =68K Dn wt =68K Rt wt =68K Tq. =2700K Art= 1 .2 Ast =2.1 No gains No losses Report Date: 7M7/2008 Job Category: DRILLING 24 H r Simmarye Drill f/ 1425'- 1685'. Sweep hole clean. POOH f/ 1685' -135'. Service rig. RIH f/ 135'- 1625'. Wash last std to bottom f/ 1625'- 1685'. Circ & condition mud. POOH f/1685'-186'. Lay down BHA. RN & run 13-3/8" csg to 350'. ops L_ StartTh a End Tine D i r tl rri Ops Code mum/ cdt Tro.ble Code Comment 06:00 10:30 4.50 DRILL ROT AF Dir. drill 16" hole f- 1425' -1685' 650gpm 1550psi Up wt. s/o wt.75k1b. rt wt.75k1b. wobl a 12k1b. tq 2350 fp!klb Art =.7 Ast= 1 .8 No gain/ loss 10:30 12:00 1 .50 CIRC MUD AF Circulate and pump Hi vis sweep at 1685' Continue circulating until shakers clean up. Sweep returned with slight increase in cuttings. Note Sweep returned as caculated hole volume. Notified BLM( Tim Lawlor) for running Casing and cementing 13 3/8 surface pipe 10:30hrs 7- 16 -08. Gave notice to AOGCC( Jim Regg) for testing BOP 12:00 14:30 2.50 TRIP A1PR AF Monitor well Poh SLM( wiper trip) f- 1685' -135' No overpulls hole slick no gain/ loss correct hole fill. No correction on SLM 14:30 '15:00 0.50 SERVIC RIG AF Service rig, Lube crown blocks, top drive & pipe spinners. 15:00 16:00 1 .00 TRIP APR AF RIH f- 135' -1685' Hole slick wash last 30 'to bottom no fill. 16:00 17:00 1 .00 CIRC MUD AF Circulate and condition mud for casing job. Continue circulating until shakers clean up. 17:00 20:00 3.00 TRIP DP AF Monitor well. POH to run casing 1- 1685' -186'. 20:00 23:00 3.00 PULD BHA AF Rack back 1 std NMDC's. Lay down shock sub, (4) crossover subs, NNW, pony collar, stabilizer, motor & bit. Found (4) H -90 non -mag connections galled. 23:00 23:30 0.50 CLEAN RIG AF Clear & clean rig floor. 23:30 03:30 4.00 RURD CSG AF PJSM: Rig up to run 13 -3/8" casing. Blue tugger line tangled. Had to respool line on drum. 03:30 06:00 2.50 RUN CSG AF PJSM w /Weatherford casing crew. PN 13-3/8" shoe track & check floats (ok). Con't running 13 -3/8 ", 68 ppf, 3-55, BTC casing to 350' t 06:00 hrs. Report Date: 7/1812008 Job Category: DRILLING 24 H r Summary Run 39 jts 13-3/8" csg. Shoe set @ 1675'. Float collar set 1629'. Circulate w/ rig down csg tools. Rig up to run inner string. RIH w/ stab -in tool & 5' pup to 1629'. Sting into float collar & circulate. Rig up & cmt 13 -3/8" csg in place. Sting out & circ out excess cmt. Flush stack & mud lines. POOH & lay down stinger assy. N!D diverter & make rough cut on 13 -3!8" csg. Move out diverter. Make final cut on 13 -3!8" csg. Empty & cleaning pits. ova StartThe End Tine Der (1,rs) Cps Code MagniCUde Starts TNlble Code Comm a 06:00 10:00 4.00 RUN CSG AF Continue running 13 3/8 68# J -55 BTC Casing. Total of 39jts run. Shoe at 1675.20'. Float Collar set at 1629.70'. No gain or Toss Tag bottom, no fill. 10:00 12:00 2.00 CIRC MUD AF Circulate and condition mud for cement job. During circulation Rig down casing tools, change out bails and elevators. Rig up drillpipe handling tools. dip false rotary for inner string cement job. 12:00 15:30 3.50 TRIP DP AF Make up 5' pup stab in tool and drillpipe centz. Rih to top of float collar 1629', stab into and space out drillpipe. www.peloton.com Report Printed: 11!18/2008 • Marathon Operations Summary Report K URPM ail Company Well Name: KENAI DEEP UNIT 9 Cat lig Ftaige EkLtbi (ti) G rot ld Eleuatbi ® l®-Cashg f lane Distance Qt) a-Growl Distance QD Id Dak Rlg Release DA 64.37 22.63 7114/2008 op¢ L_ StirtTtne EldTine Dur(iTs) Gp3Code Acniniccde SIM Troubk Cale Come it 15:30 18:00 2.50 PUMP CMT AF PJSM wl BJ services: Break circ & pump 40 bbls Mud Clean II preflush w/ rig pump. Switch to BJ unit, pump 2 bbls water & test cmt lines to 3000 psi (ok). Mix & pump 416 sks Type 1 cart wI 22% LW -6, 20% MPA -1 , 2% CaCl2, 1% SMS, 0.3% CD -32, 0.05% Static Free, 1 gaI1100 sks FP -6L, 12.0 ppg, 2.483 cu.ft. /sk yield (184 bbls total cmt slurry), 10.328 gal waterlsk (102 bbls mixing water), 3:57 hrs thickening time. Pumped total of 184 bbls cmt & got 37 bbls excess back to surface. Displace cmt wl 2 bbls water & 25 bbl drilling mud. Shutdown & unsting drill pipe. Check floats (ok). Cement in place @ 17:42 hrs on 7117/2008. Float shoe set i 1675.2', top of float collar set 5.1629.7'. 100% returns. 18:00 21:00 3.00 CIRC MUD AF Pull 1 ft dri I pipe, drop wiper plug & turn over to rig. CBU. Got 5 bbls contaminated mud w/ cart back. Treat 13 -3/8" X 5" annulus wl citic acid. Flush stack & all mud lines. 21:00 23:30 2.50 CIRC MUD AF PJSM: POOH w/ 5" drill pipe. Lay down 5' pup & stab -in tool. Clean rig floor. 23:30 02:30 3.00 NUND ROPE AF PJSM: NA] diverter line, knife valve, hydraulic control lines, flow line adapter. Hot bolt stack & finish preping to cut 13 -318" csg. 02:30 03:00 0.50 CUT CSG AF Make rough cut on 13 -3/8" casing. 03:00 06:00 3.00 NUND WLHD AF PJSM: L/D 13 -3/8" csg stump. RID diverter stack & set back in rack. LID 20" starter head. Make final cut on 13 -318 csg. All while cleaning pits. Daily Operations Report Date: 711912008 Job Category: DRILLING 24 H r Summary Install & test muttibowl wellhead. N1J & test ROPE. Test 13 -3/3" csg. PAJ 5" drill pipe & stand back. opa Stu EidTine Dor (ire) Oct Cade Act lttrCa]e Glans Trorble Cock Come it 06:00 09:00 3.00 NUND WLHD AF Set Vetco Gray VGMI MB236 13 315 X 5000 Slip on Well Head. Test to 1500psi110min. Complete Pit Cleanning 09:00 16:00 7.00 NUND ROPE AF PJSM :Nipple up BOPE. Set Stack on well head. Nipple up Riser Flow nipple , trip tank ,Choke and kill lines. Install accumlator lines. Begin Mixing Mud 16:00 00:00 8.00 TEST BOPE AF PJSM; Make up test joint set test plug. Test ROPE and all related components 250/5000 psi 10 Min test ( BLM requirement) Perform accumlator drawdown test. Test gas alarms. Witness waved AOGCC Chuck Sheavey and Gave notice to Tim Lawlor BLM 7- 17- 2008.10:00hrs Repaired leaks on door seal, casing spool & test pump. 00:00 00:30 0.50 RURD OTHR AF Riq down test equipment. Lay down test it. & test plug. 00:30 01:30 1.00 TEST 050 AF PJSM: Rig up & test 13 -318" casing to 1500 psi 1/30 min. (ok). Rig down test equipment. 01:30 02:00 0.50 RUNPUL WHSH AF Install wear bushing. Replace graylock connection & seal ring on kill line connection. 02:00 06:00 4.00 PULD DP AF PJSM: PAJ 100 jts 5" drill pipe & rack back in derrick. Total jts = 50 [rn 06:00 hrs. Report Date: 7/20/2008 Job Category: DRILLING 24 HrSUmmary PAJ 5" drill pipe & stand back. Realign toque tube. LSD (2) NMDC's from derrick. P/U 12 -114" directional assy. RIH wl picking up 5" drill pipe singles. Wash down & tag float collar 1629'. DA0 float equip & shoe track. Drill 20' new formation. Ciro & displace hole w/ new 8.9 ppg flo -pro mud. Perform F.I.T. to 13.0 ppg EMW. Drill 12 -114" hole 111705'- 2400'. opa Startnne Eid The Dlrarsf OpaCale P ttrca]e Glans Trouble Cale Canmeit 06:00 07:30 1 .50 PULD DP AF Continue to PAJ drift and stand back 5" drill pipe total of 78 jts PAJ. 07:30 09:00 1 .50 INSPCT RIG AF Realign Torque tube to center of hole. 09:00 09:30 0.50 PULD BHA TA MSTB Lay down 8" monel drill collars from mast. 09 :30 14:00 4.50 PULD BHA AF PJSM: PAJ 12 -114" directional assembly & RIH wl 5" l-MDP to 824'. Pulse test MdVD (ok). 14:00 15:30 1 .50 PULD DP AF PJSM: RIH while picking up 22 jts 5" drill pipe 1/824'-1521'. Con't RIH wl stds to 1579'. Wash down last 50'. Tag float collar @ 1629'. (Corrosion ring installed in 1st stand). 15:30 16:45 1.25 DRILL CMT AF Drill out float collar, shoe track & float shoe 111629'- 1675'. Clean out 16" rat hole 1/ 1675'- 1685'. Pump Grn 480 gpm, 800 psi, wob 5 -10 kib, 40 rpm, tq 3 -5 kft-lb. 16:45 17:00 0.25 DRILL ROT AF Drill 20' new formation f/ 1675' -1705' 480 gpm, 800 psi, 5 -10 klb & 40 rpm. ART: 0.2 hrs. www.peloton.com Report Printed: 1111812008 • 1 I Marathon Operations Summary Report NUMMI , Oil Corripany Well Name: KENAI DEEP UNIT 9 Cas IYg Flaige EleaDA ® Gronld Eleu3ttoI Oti ge-Cas lig FMtge DIstam (79 1411-G ro4 tcl DIslawe Yd Dab Rk] Release Dale 64.37 22.63 7/1412008 Ops L_ StartTlne EIdTine Du (1rs) Ops Code PcrirlG'Cafe St3ds Tro!bk Code Comm it 17:00 18:30 1 .50 CIRC MUD . ",F CBU. Mix & pump 25 bbls water, 30 bbl hi -vis sweep & displace hole wl 230 bbls new 8.9 ppg flo pro mud. 18:30 19:00 0.50 TEST LOT .=,F Pertorm F.I.T. wl 8.9 pp9 mud [cn 1616' tvd. 345 psi = 13.0 ppg EMVV. 19:00 00:00 5.00 DRILL ROT AF PJSM Directional drill 12-114" hole ft 1705' -1981' @ 598 gpm, 1200 psi, wob 5 -10 klb, 55 rpm, tq 3 -5 kft-lbs, p/u 82 klbs, slo 69 klbs, rot wt 75 klbs. ART: 2.1 hrs. AST: 0.7 hrs. 00:00 06:00 6.00 DRILL ROT AF PJSM: Directional drill 12-1/4" hole f11981' -2400' @ 560 gpm, 1200 psi, wob 10 -12 klb, 60 rpm, tq 3 -5 kft-lbs, p/u 85 klbs, s/o 70 klbs, rot wt 75 klbs. ART: 1.6 hrs. AST: 1.6 hrs. Daily Operations Report Date: 7212008 Job Category: DRILLING 24 H r SYmmary Drill 12 -114" hole f/ 2400'- 3532'. CBU & con't circ until clean. Monitor well. Make wiper trip to 13 -3/8" csg shoe. Service rig. RIH. Wash 1 std to bottom. Spot 30 bbl hi -vis sweep. opt StartTme Ric! The DIr(Yrs) opsCale acttilvCccle Stalls Trouble Code Came it 06:00 12:00 6.00 DRILL ROT AF Directionaly drill 12 114 hole (12400'- 2870 '588gpm 1325psi. Up. 92kIb S/O 77k1b. Rt.Wt. 86k1b 95rpm. Tq 6 -7ktt -Ibs. wob 12- 20k1b. Art =3.2 hr Ast =.3hr. No gain/ Loss. 12:00 18:00 6.00 DRILL ROT AF PJSM: Directional drill 12-1/4" hole 112870' -3282 @ 600 gpm, 1700 psi, wob 5 -12 klb, 93 rpm, tq 6 -58 kft-lbs, p/u 105 klbs, s/o 85 klbs, rot wt 95 klbs. ART: 2.3 hrs. AST: 1.4 hrs. 18:00 22:30 4.50 DRILL ROT AF Directional drill 12 -114" hole f13282' -3532' 560 gpm, 1450 psi, wob 5 -10 klb, 93 rpm, tq 6 -8 kft-lbs, 0.4112 klbs, s/o 90 klbs, rot wt 100 klbs. ART: 1.1 hrs. AST: 1.6 hrs. 22:30 00:00 1.50 CIRC MUD AF CBU & cont circ until shakers clean 560 gpm & 93 rpm's. Had 2X increase in cuttings over shakers a. bottoms up. Monitor well (static). 00:00 02:30 2.50 TRIP VV1PR AF PJSM: Make wiper trip f/ 3532'- 1675'. Hole slick, no problems. Took proper fillup. 02:30 03:30 1 .00 SERVIC RIG AF PJSM: Service rig. Lube carrier, top drive, blocks & crown. Perform well control drill. Hole took 2 bbls fluid while sitting.. 03:30 05:00 1 .50 TRIP WPR AF PJSM: RIH slowly 1/1675'-3470'. No problems. Hole slick. 05:00 06:00 1 .00 CIRC MUD AF PJSM: Wash last std down f/ 3470 - 3532. Spot 30 bbl hi -vis sweep. Report Date: 712212008 Job Category: DRILLING 24 H r SYmmary Drill 12 -1/4" hole f/ 3532'- 4481'. Circ hole clean. Spot 50 bbl LCM pill. Make 15 std short trip. Drill ahead 12-1/4" vertical hole 114481'-479T. Opt L_ GlartlIne EYdTlne DIr(irs) Ops Cock rctliitrcode Stihs TroYble Code Came it 06:00 12:00 6.00 DRILL ROT AF Directional drill 1/ 3532'- 3912' S60gpm 1250psi. Up 120KIbs.S/O 95klbs. Rt.VVt. 105kIbs Tq- 7 -8kft -Ibs. wob 12- 15k1b. 93rpm. Ast= 1 .8 Art =1.8 10 bbls per hr loss to formation. Reduce pump rate to 520gpm. Run centrifuge van to mairtain mud weight at 9.3ppo. After wiper trip pump pressure. decreased 200psi. Sweep returned at calculated hole volume with a 100% increase in cuttings over shakers. 12:00 18:00 6.00 DRILL ROT AF PJSM: Directional drill 12-1/4" hole f13912' -4165' @ 525 gpm, 1500 psi, wob 10 -15 klb, 92 rpm, tq 8 -12 kft-lbs, plu 130 klbs, s/o 102 klbs, rot wt 115 klbs. ART: 1.0 hrs. AST: 3.0 hrs. Losing 10 bph fluid loss to fora jon., 18:00 22:00 4.00 DRILL ROT AF Directional drill 12-1/4" hole f/ 4165' -4481' 525 gpm, 1450 psi, wob 5 -15 kilo, 90 rpm, tq 8 -10 kft-lbs, p/u 135 klbs, slo 105 klbs, rot wt 125 klbs. ART: 2.4 hrs. AST: 0 hrs. Losing 8 bph fluid Toss to formation. Static losses 2 bph. 22:00 00:00 2.00 DRILL ROT AF PJSM: Circ hole clean for 15 std short trip r 525 gpm & 90 rpm's. Monitor well (4 bph static losses). Spot 50 bbl LCM pill on bottom (2.5sx Flo -Vis, 2sx PolyPac, 28 sx KCL, 15 ppb each 2/10120/401250 Safe Carb, 10 ppb G -Seal & 5 ppb each Mix 11 fine/med). 00:00 01:00 1.00 TRIP VNPR AF PJSM: Make 15 std short trip out of hole 114481'- 3520'. No tight spots. Pulled slick over entire interval. Hole took proper fillup. 01:00 02:00 1 .00 TRIP W1PR AF RIH slowly f/ 3520'- 4419'. Wash last std down 1/ 4419'- 4481'. No ledges or tight spots while running in. No fill on bottom. Hole displaced as calculated. No losses to formation throughout trip. 02:00 06:00 4.00 DRILL ROT AF Drill 12-1/4" vertical hole f/ 4481' -4797' 530 gpm, 1500 psi, wob 5 -15 klb, 90 rpm, tq 8 -11 kft -Ibs, p/u 150 klbs, slo 100 klbs, rot wt 125 klbs. ART: 2.1 www.peloton.com Report Printed: 11/1812008 (m) Operations Summary Report s Company Well Name: KENAI DEEP UNIT 9 Daily Operations Report Date: 7)2302008 Job Category: DRILLING 24 H r Summary Drill 12 -114" hole to 9 -5/8" csg pt @ 5675'. CBU x 1 .5.4Mpe hole 1/ 5675'- 3471'. RIH. Pump hi -vis sweep & circ hole clean. Spot 50 bbl hi- vis)LCM pill on bottom. POOH to run 9 -518" csg. Current depth 4790'. Opt L_ S1artTlne EtdTbe DIr rs) Ors Code Aclltlicock S1ads Troubk code Canmett 06:00 12:00 6.00 DRILL ROT AF Directional drill 12 114 hole f/ 4797'- 5202', 520gpm 1450psi wob 5- 15kIb.90rpm tq 9.5 -11 kft-Ibs. P/U 153k1b S1O 120k1b. Rt.wt 135k1b. Art =4.1 As-t=0. 10bbls per hr.fluid loss to hole. 12:00 19:00 7.00 DRILL ROT AF Directional drill 12 -114" hole ft 5202'- 5675'. TD 12 -114" hole section. Pump 520, 1700 psi, wob 5 -15 klb, 90 rpm, tq 9 -12 kft-Ibs, plu 165 klbs, sta 120 klbs, rot wt 140 klbs. ART: 4.9 hrs. AST: 0 hrs. 10 bph fluid losses to formation. Note: called BLM ( Tim Lawler)Gave Notice of Running and Cemerrting 9 -518" Casing 7 -22 -2008 16:45 hrs. 19:00 20:15 1 .25 CIRC MUD AF Circ bottoms up & until shakers clean [rn 520 gpm & 90 rpm. Losing 10 bph fluid loss. Monitor well (static losses 2 bph). 20:15 23:30 3.25 TRIP VMPR AF PJSM: Wper trip. POOH ft 5675'- 3471'. Work thru tight spots 4864', 5048', 5335' (30 -35K overpull). Reamed tight spot @ 4956'.(pulled 50k over, no go, connect up & ream out). Lost 4 bbls fluid to formation. 23:30 02:00 2.50 TRIP VMPR AF PJSM: RIH slowly 113471'- 5675'. Wash & ream thru tight spot 115112'- 5238'. 5' fill on bottom. Proper displacement. No losses to formation. 02:00 04:00 2.00 CIRC MUD AF Pump 30 bbl hi -vis sweep & circ until shakers clean. Had 250% increase in cuttings over shakers from trip depth of 3471'. Saw no significant increase in cuttings from sweep bottoms up. Spot 50 bbl hi- vis1LCM pill on bottom. No fluid losses to formation while circulating. Monitor well (static). 04:00 06:00 2.00 TRIP DP AF ,PJSM: POOH to run 9 -518" casing 1/ 5675-4790' @ 06:00 hrs. Report Date: 71242008 Job Category: DRILLING 24 H r Summary POOH & LAD BHA. C/O upper pipe rams f/ 5" to 9 -518" & test to 250)2500 psi. Make gauge run w/ 9 -518" csg hanger. RN to run 9 -518" csg. Wait on Weatherford. C10 stabbing guides on csg elevators. Run 9 -5 /8", 40 #, L -80 ,BTC csg to 3112'. ola L_ S1artTlne EIdThe Dtr (Yrd) Om Code Ac1LtVCCde Suds Trotbk Cock Canmett 06:00 11:00 5.00 TRIP DP AF Continue POH with drillpipe from 4790', Slight loss of fluid to hole 11:00 14:30 3.50 TRIP BHA AF Stand back MNDP and Jars, Lay down Monels ,MWD Pony Collar X-overs,Stabilizer and Motor Note; All 6 5/8 H -90 connections showed no galling after breaking out 14:30 16:30 2.00 TEST CSG AF PJSM;Pull wear Bushing, Set test plug. Change out 5" pipe rams to 9 5/8 casing rams. 9 518 casing test joint test 9 5/3 rams 250t2500psi. Make gage run with 9 5/8 hanger 16:30 20:30 4.00 RURD CSG AF C1O bails.lnstall fill up tool. Move tongs, Adjust torque tube. 20:30 21:00 0.50 RUN CSG AF PJSM wl Weatherford casing crew: Pick up shoe jt. Casing elevators dressed wrong w/ 7 -5)8" stabbing guides. 21:00 22:30 1.50 WAITON EQIP TA MSOT Remove 7 -518" stabbing guides from casing elevators. Waiting on Weatherford to hotshot & install 9 -518" stabbing guides. 22:30 06:00 7.50 RUN CSG AF P11J 9 -5)8" shoe track & check floats (ok). Cont run 9 -5/8 ", 40 ppf, L -80, ETC casing to 3112' 06:00 hrs. Ran total 77 jts. Report Date: 7/2512008 Job Category: DRILLING 24 H r Summary Run 9 -518" csg. Circ while hold weekly safety meeting. Cement 9 -518" csg in place. Shoe ( 5667.7', top of float collar 5582.2'. Set 9 -5/8" pack off & test to 5000 psi ft 10 min. R)D csg tools. RN pipe handling tools. C/O upper pipe rams ft 9 -516" csg rams to variables. RN to test BOPE. Repair test plug. Test BOPE. opa S1artTme EtdThe Otrllre) OpsCaie PcturVCafe Stalls Trotble Cock Canme 06:00 12:00 6.00 RUN CSG AF Cant run 9 -5)8 ", 40 ppf, L -80, BTC casing 113112'- 5620'. Tagged ledge 5620'. Washed down f/ 5620' -5667. Ran 140 total jts. Shoe set 5667.7',_ ton of float collar set 5582.2'. CBU @ 3667'. Lost 3 bbls fluid while RIH. 12:00 13:00 1.00 SAFETY MTG AF 1 SIG1: circulate 9 - 5)b - csg g 5bb1' ( 4 bpm while hold weekly safety meeting wI both crews. 13:00 14:30 1.50 CIRC MUD AF Cont circulate while hosting Marathon visitors. Conduct meeting discussing Marathon safety policies with day drill crew. www.peloton.com Report Printed: 11/8/2008 i m p Marathon Summary Report s �C �pany Well Name: KENAII DEEP UNIT 9 Cps St3rtTPoe EYdTine Dlr clan Ops Cock ActliliCa]e Stahl TroibkCale Came lit 14:30 18:30 4.00 PUMP CMT AF PJSM w/ BJ services: RN cmt head & lines. Fill cmt lines w1 2 bbls water & test to 3000 psi (ok). Drop bottom plug. Mix and pump 30 bbls Seal Bond 10.0 ppg. Pump 208 bbls pre -mixed 10.5 ppg cement slurry w1346 sks Class "0" cmt w147% LW -6, 15% BA -90, 0.5% SMS, 1 .0% CD -32, 1 .2% FL -63, 0.05% Static Free, 1 gaits 00 sks FP -6L, 1 .5% CaCL, 3.375 cu.ft.1sk yield, 12.979 gal water /ek. 3:43 hrs thickening time. Drop top plug & kick out w1 2 bbls water. Line up w/ rig pumps & displace cmt w1424 bbls drilling mud. Bump plug @ calculated strokes w1 1250 psi 1700 psi over displacement pressure. Hold for 3 min. Bleed off & check floats (ok). Cement in place 18:10 hrs on 7/24/2008. Float shoe set @ 5667.7', top of float collar set @ 55822'. Had 100% returns. Note: First plug bumped and pressured up to 850psi to shear disc. Cement job witnessed by Tim Lawlor ELM 18:30 22:30 4.00 TEST VVLHD AF PJSM: LSD landing jt. Set 9 -5/8" pack -off & test to 5000 psi /110 min (ok). 22:30 02:00 3.50 RURD OTHR AF PJSM: Lay down casing tools. Rig up to handle drill pipe. Move top drive rail back. Change out bails & elevators. 02:00 03:00 1.00 RURD CSG AF PJSM: C10 upper pipe rams f19 -5/8" csg rams to variables (2 -7/8" X 5-112"). 03:00 05:30 2.50 TEST ROPE TA MSBO PJSM: NJ test plug & RIH. Could not set. POOH & found both seals damaged. Repair test plug. 05:30 06:00 0.50 TEST BOPE AF Test ROPE to 25015000 psi f/5 minutes. Daily Operations Report Date: 7/26/2008 Job Category: DRILLING 24 H r Simmary Finish test BOPE. Troubleshoot & repair cotta box. Test 9 -5/8" csg to 2500 psi f/ 30 min. Cony repair cotta box. Make up 8-1/2" directional BHA. ops StartTlne Eta The Durprsa Cps Code ActirliCale Stahl Trouble Cal Come it 06:00 09:00 3.00 TEST BOPE AF Continue Test BOPS and all related equipment 250/5000 Smin test. Perform accumulator drawn test. Pull test plug set wear bushing Test Flow and PVT system. Test LEL H2s gas alarms. All passed. Witness waved by Jim Regg AOGCC 7/23/2008 141 Shrs. Notified Tim Lawlor ELM 7/2312008 1 S20hrs 09:00 18:00 9.00 REPAIR RIG TA MSHS Replace Shift fork, shaft & seals on #2 side Cotta box. Note: Start centrifuge van. Cut mud wt f/ 9.8 18:00 19:00 1 .00 TEST CSG AF Test 9 5/8 Casing 2500psi for 30 min. final pressure after 30min 2500psi. 19:00 03:00 8.00 REPAIR RIG TA MSHS PJSM: Repair cotta box. Replace shifting fork, shifting shaft & seals on #2 side. Test run. Troubleshoot right angle drive. 03:00 06:00 3.00 PULD BHA AF PJSM: Pick up & make up 8-112" directional BHA. Test Mv4D. Install RA tag located in pin connection at bottom of hwdp @ 132.42' from bit Note Shut down Centrifuge van at 0400hrs. Mud weight in pits 9.4 Report Date: 7/27/2008 Job Category: DRILLING 24 H r Summary RIH while PN 108 'its 5" drill pipe to 4205'. Cont RIH to shoe. Slip drilling line. DIO shoe track & 20' new hole. Repair carrier #2 motor. Circ & condition mud. Perform L.O.T.@ 5354'tvd w19.9 ppg mud & 1210 psi(EM/V =14.2 ppg). Drill 8-1/2" vertical hole @ 6724'. ops SlartTtne ErdThe Our are) Ore Ccde A,ctltllrCaie Stills Trorble Cale Canmest 06:00 11:30 5.50 TRIP DP AF RIH PN Drift 5" drillpipe total of 108jts PL. Continue RIH 5" drillpipe from mast to 5500' 11:30 12:30 1 .00 CUT 1MRE AF PJSM: Slip drilling line. Rest C.O.M. 12:30 14:00 1.50 DRILL CMT AF Drill out shoe track, tag float collar at 5582 Drill out shoe track f- 5582' -5667, Drill firm cement f -5584' -5668' Clean out old hole to 5675'. Drill 20' of new hole f- 5675- 5695'. ART: 0.2 hrs. 14:00 14:30 0.50 REPAIR RIG TA MSPW Repair # 2 Carrier Motor glycol line to engine heater. Shut down and repair. 14:30 15:00 0.50 CIRC MUD AF Circulate BN Condition mud for LOT test 15:00 15:30 0.50 TEST LOT AF Perform LOT 9.9mw 1210psi @ 5354 TVD = 14.2EM1 15:30 18:00 2.50 DRILL ROT AF In ve ica o e • • -5:4 .+ 65 6137",770 psi, wob 5 -10 klb, 80 rpm, tq 11 -14 kft -Ibs, p/u 170 klbs, s/o 105 klbs, rot wt 135 klbs. ART: 1.3 hrs. AST: 0 hrs. No gains or losses. 18:00 00:00 6.00 DRILL ROT AF Drill 8-1/2" vertical hole f15843' -6284' @ 475 gpm, 1550 psi, wob 5 -10 klb, 76 rpm, tq 8 -10 kft-Ibs, 0.4170 klbs, s/o 115 klbs, rot wt 141 klbs. ART: 4.0 hrs. AST: 0 hrs. No gains or losses. Increased LubeTex concentration f/ 1% to 4 %. Trickling in Steel Luba. www.peloton.com Report Printed: 1111812008 • • ( M Marathon Operations Summary Report k) Oil Company Well Name: KENAI DEEP UNIT 9 o p StrtTtne EIdTMe Dlrpre) OpaCale Aotkiiroccie Sttda TrotbkUde Comm kt 00:00 06:00 6.00 DRILL ROT AF PJSM: Drill 8-1/2" vertical hole ft 6284' -6724' 453 gpm, 1800 psi, wob 5 -12 klb, 73 rpm, tq 7 -9 kft -Ibs, plu 180 klbs, slo 125 klbs, rot wt 142 klbs. ART: 3.8 hrs. AST: 0 hrs. No gains or losses. Daily Operations Report Date: 7128/2008 Job Category: DRILLING 2i H r S;mmary Drill 8-1/2" vertical hole fl 6724'- 6849'. Circ hole clean. Wipe hole t/ 6849'- 5648'. Service rig. RIH 1/5648' -6849. Drill 1/ 6 7924'. Circ hole clean. Make short trip f/ 7924'- 6849'. op SartTtne EYdTMe Dir (Ire) OpaCoie PctittiCotle Stids Trotbk Code Cc me it 06:00 07:00 1.00 DRILL ROT AF Drill f- 6724' - 6849' 465 gpm, 1850 psi, wob 5 -10 klb, 74 rpm, tq 7 -9 kft-Ibs, p/u 170 klbs, s/o 120 klbs, rot wt 150 klbs. ART: 1.0 hrs. AST: 0 hrs. No gains or losses. 07:00 08:00 1 .00 CIRC MUD AF Circulate and condition mud for wiper trip 475g m p 1 750psi. Continue circulation until shakers cleaned up. Huy return of clay and silt 08:00 11:30 3.50 TRIP VNPR AF POH ( wiper trip) f- 6849' -5648' Work and wipe various Tight spots. No gain1oss Correct hole fill 11:30 12:30 1 .00 SERVIC RIG AF Service rig. Lube blocks Top drive and carrier drivelines. 12:30 13:30 1 .00 TRIP VNPR AF RIH f 5648'- 6849'. Wash 1- 6785'- 6849'. Tag bottom no fill. No gainrloss. Hole shc< 13:30 18:00 4.50 DRILL ROT AF Drill 8-1/2" vertical hole f/ 6849' -7228' @ 475 gpm, 1900 psi, wob 5 -15 klb, 85 rpm, tq 7 -10 kft -Ibs, pill 175 klbs, s/o 130 klbs, rot wt 155 klbs. ART: 2.9 hrs. AST: 0 hrs. No gains or losses. Trip gas: 65 units. Max gas: 241 unli s. No Conn gas. Avg bkgnd gas 25 units. 18:00 00:00 6.00 DRILL ROT AF 71117177 ve ical 7228' -7671' 475 gpm, 2000 psi, wob 5 -15 klb, 88 rpm, tq 7 -9 kft-Ibs, p/1.4178 klbs, s/o 140 klbs, rot wt 158 klbs. ART: 4.0 hrs. AST: 0 hrs. No gains or losses. Max gas: 215 units. No conn gas. Avg bkgnd gas 30 units. Weighted up f/ 9.8 ppg to 10.4+ ppg. 00:00 03:30 3.50 DRILL ROT AF PJSM: Drill 8-1/2" vertical hole 117671' -7924' 475 gpm, 2000 psi, wob 5 -15 klb, 90 rpm, tq 6 -8 kft-Ibs, p/u 185 klbs, slo 140 klbs, rot wt 162 klbs. ART: 2.1 hrs. AST: 0 hrs. No gains or losses. Max gas: 390 units. Avg bkgnd gas: 50 units. No conn gas. No gains or losses 03:30 04:30 1 .00 CIRC MUD AF CBUx1 .5. Circ and condition mudfrole for wiper trip @ 475 gpm, 2000 psi & 90 rpm's. Monitor well (static). Pump dry job. 04:30 06:00 1 .50 TRIP d 1PR AF POH ( wiper Trip) 7924'- 6849'. Work various tight spots. Current depth 06:00 hrs. = 7100'. Report Date: 712912008 Job Category: DRILLING 24 H r Simmary Cont POOH f/ 7100'- 6550'. RIH. Drill t/ 7924'- 8800'. CBU sample for geologist. Wait evaluation. Drill f/ 8800'- 8850'. CBU sample for geologist. Wait on evaluation. Drill t/ 8850'- 8900'. CBU sample for geologist. Wait on evaluation while weighting up fl 11 .5 ppg to 12.0 ppg. o p St3rtTMe EdTMe Dur(Yrd) Ops Cock RallittiCode SOU Trouble Code Canmekt 06:00 09:00 3.00 TRIP W1PR AF Continue wiper trip F -7100' -6550' Back ream and circulate to clean up Tight hole F7001 -6974' and from 6959 - 6910'. Pipe tree 1 -6850- 6550'. RIH 6550'- 7890'. Wash f- 7890 -7925' No fill . Circ and spot sweep in pipe 09:00 12:00 3.00 DRILL ROT AF Drill 8 1/2 hole (17924' -8145 465gpm 2000psi Up Wt 187k1b. S/O 140kIb Rt Wt.164k1b. Tq 8 -9kft-Ibs 85rpm wob 9- 12k1b. Art =1 .7hrs Ast =O No gain loss Max Bottoms up gas1585 units. Mud weight 10.6 12:00 20:00 8.00 DRILL ROT AF PJSM: Drill 8-1/2" vertical hole f/ 8145-8800' 450 gpm, 2200 psi, wob 10 -15 klb, 85 rpm, tq 10 -12 kft -Ibs, p/u 195 klbs, s/o 145 klbs, rot wt 175 klbs. ART: 6.7 hrs. AST: 0 hrs. Max gas: 548 units, avg bkgnd gas: 80 units, conn gas: 160 units. Weighted up f/ 10.9 ppg to 11 .5 ppg. No gains or losses 20:00 22:30 2.50 CIRC MUD AF PJSM: Circ bottoms up sample @ 8800' for Geologist. Cont circ while evaluating logs. 22:30 23:45 1.25 DRILL ROT AF Drill 8-1/2" hole f/ 8800' -8850' 450 gpm, 2200 psi, wob 6kIb, 85 rpm, tq 10 -12 kft-Ibs, p/u 200 klbs, s/o 145 klbs, rot wt 175 klbs. ART: 1 .2 hrs. AST: 0 hrs. Max gas: 154 units, bkgnd gas: 26 units, conn gas: 29 units. Control dril: 50 tph for cuttings sample quality. 23:45 00:30 0.75 CIRC MUD AF PJSM: Circ bottoms up sample [rn 8850' for Geologist. 00:30 01:30 1.00 TRIP W1PR AF PJSM: Precautionary short trip while waiting for geologic evaluation to check gas influx. POOH slowly f/ 8850'- 7863'. Hole slick. No problems. www.peloton.com Report Printed: 1111812008 • • ( NI ) Marathon Operations Summary Report r oilCompany Well Name: KENAI DEEP UNIT 9 0ps I StartTlne EidTrne DIr(Irs) Ops Cale A.c1LttiCbde SSA TrorbleCode Came it 01:30 02:30 1 .00 CIRC MUD AF RIH slowly fl 7863'- 8850'. Hole slick. No swolen clays. No fill. No gains or losses throughout trip. 02:30 04:00 1.50 DRILL ROT AF Drill 8 -112" hole fl 8850' -8900' 1 475 gpm, 2250 psi, wob 6klb, 85 rpm, tq 10 -12 kft-Ibs, plu 200 klbs, s/o 155 klbs, rot wt 175 klbs. ART: 1.1 hrs. AST: 0 hrs. Trip qas: 2064 units. Control drill (5. 50 fph for cuttings sample quality. 04:00 06:00 2.00 CIRC MUD AF PJSM: Circ bottoms up sample @ 8900' for Geologist. Wait for orders from gologist. Weight up f 111 .5 ppg to 12.0 ppg. Daily Operations Report Date: 7/300008 Job Category: DRILLING 24 H r Summary Drill 8 -112 hole f/ 8900' - 8925'. CBU sample. Drill fl 8925'- 8945'. CBU sample. Drill (18945'- 8955'. CBU sample. POOH (wiper trip) fl 8955'- 8008'. Backream out of hole 118008'- 5667'. CBU x 1 .5 @ shoe. Service rig. RIH. Circ hole clean & weight up mud f1 12.0+ ppg to 12.2 ppg. Monitor well. POOH me drilling assembly to 8700' @ 06:00 hrs. opa - StartTrne EidTme Our(irs) Ops Code ActrjFVCode Stabs TrobleCol Came it 06:00 06:30 0.50 DRILL ROT AF Drill 8 112 hole f18900' -8925' 475gpm 2350psi 85rpm wob 5 -8klb. Art =.6hrs Ast =0 06:30 08:00 1.50 CIRC MUD AF Circ:. samples. 08:00 08:30 0.50 DRILL ROT AF Drill 8 112" hole F/8925' -8945' 475gpm 2350psi 85rpm wob 5 -8k1b. ART= .4hrs AST =Ohrs. 08:30 10:00 1.50 CIRC MUD AF Circ:. samples. 10:00 10:30 0.50 DRILL ROT AF Drill 8 112" hole F/8945' - 8955' 475gpm 2350psi 85rpm wob5 -8klb. ART =.3hrs AST =Ohrs 10:30 13:00 2.50 CIRC MUD AF Circ:. samples. 475GPM 2350psi 85RPM UP 197K DN 155K Rot 175K 13:00 22:00 9.00 REAM OH AF PJSM: Wiper trip. POOH f18955- 8008'. Pulling tight @ 8590', 8331', 7974'. Backream tight hole f18008' to 9 -5/8" csg shoe @ 400 gpm, 90 rpm's, tq 8 -14 kft -Ibs. Top drive stalling occasionally. Heavy clay over shakers all the way out. 20 bbl loss over shakers. 22:00 23:00 1 .00 CIRC MUD AF CBIJ & can't circ until shakers clean Caa 475 gpm & 90 rpm's. 23:00 00:00 1 .00 SERVIC RIG AF Service rig. Grease top drive, crown & blocks. Check drive lines & oil in carrier engines. 00:00 01:30 1 .50 TRIP VNPR AF PJSM: RIH ft 566T-8955'. No problems. Hole slick. No fill. Proper displacement. 01:30 05:30 4.00 CIRC MUD AF Circ hole clean. Max trip gas 358 units. Multiple light spots found in mud system. Cont circ & condition mud system while weight up f/ 12.0 -12.1 ppg to solid 12.2 ppg. Monitor well (static). 05:30 06:00 0.50 TRIP BHA AF PJSM: POOH wl drilling assembly to run gamma -ray logs on wireline. Pump dry job. Drop 2 13/16" rabbit. Current depth @ 06:00 hrs 8700'. Report Date: 71310008 Job Category: DRILLING 24 H r Summary POOH wl drilling assembly.Run logs.RN to run 7 ".PN shoe track. °ps I SlartTITie EidTrne Dir(i re) OpsCbde .Jtycode Stalls Trotble Cale Came 06:00 13:30 7.50 TRIP DP AF PJSM: POOH mDP(SLM). Hole in good condition. retrieve 2 13116" rabbit from top of jars.. 13:30 15:00 1.50 TRIP BHA AF PJSM. POOH w)BHA. Rack back BHA and B1O bit. Removed radioactive pip taq from BHA. 15:00 15:30 0.50 CLEAN RIG CS Clean and organize rig floor. 15:30 19:30 4.00 LOG OH CS PJSM. RN and run GR -CCL log. 19:30 22:30 3.00 LOG OH CS - 76Tnove ow springs from logging tool and RIH log from 8948'. 22:30 23:00 0.50 LOG OH AF Wait on LOGS. 23:00 23:30 0.50 RUNPUL VVSSH AF PJSM; Pull wear bushing 23:30 01:30 2.00 TEST BOPE AF PJSM Change pipe rams to 7 ", Riq up and test rams to 2500 psi f110 min. 01:30 02:00 0.50 RUNPUL VVHSH AF -Fsn wear bushing. 02:00 02:30 0.50 RURD CSG AF PJSM; Pick up jt. 5" drill pipe and make up on top drive cement head. 02:30 05:00 2.50 RURD CSG AF PJSM; Change out elevators and bales, Rig up to run 7" liner. 05:00 06:00 1 .00 RUN CSG AF Pick up 7" liner shoe track and bakerlok. Report Date: 8/10008 Job Category: DRILLING 24 H r Summary MN shoe track and test floats. Run 7" liner. C/O bales and elevators.Pick up 7" liner RIH Cement, set liner hanger and packer, POOH www.peloton.com Report Printed: 111180008 • • ( 41% ) Operations Summary Report MAMMA t Oil Company Well Name: KENAI DEEP UNIT 9 apa L_ StartThe Bid Tin DI Opt Cale Act: CWe Strts Troible COde Canmett 06:00 07:00 1.00 RUN CSG AF MN 7" 26PPF L -80 Butt-mod liner shoe track and bakerlok. Circ. thru shoe track and check floats. 07:00 08:00 1.00 RUN CSG AF Cont. to run 7" liner. 08:00 09:00 1.00 REPAIR EQIP TA MSTB Repair CSG crew tangs. Tongs slipping on CSG. 09:00 14:30 5.50 RUN CSG AF Cont. to run 7" 26PPF L -80 CSG (total 83jnts 3444 ft). PJSM w /crew coming on @ 12:00hrs. 14:30 16:00 1 .50 RURD CSG AF PJSM. CIO to short bales and DP elevators. 16:00 16:30 0.50 RUN CSG AF PN 7" liner hanger tools and liner top packer and MAJ. 16:30 17:00 0.50 RURD CSG AF R/D Weatherford CSG tools. RN manual rig tangs. 17:00 17:30 0.50 CIRC MUD AF MN 1st stand of 5" HADP to hanger assy. Circ. CSG 380GPM 787psi. PN 97K S/O 70K wino pumps. 17:30 19:30 2.00 RUN CSG AF Cont. to run 7" liner on 5" DP. to 9 5/8 shoe, break circ. 19:30 22:00 2.50 RUN CSG AF Cont.RIH w/ 7" liner on 5" drill pipe. 22:00 23:00 1 .00 WASH FILL AF Rig up Top drive cement head, and wash to bottom.f 8928' to 8955'. 23:00 01:00 2.00 CIRC MUD AF Circulate bottoms up, 88 units gas. 01:00 04:00 3.00 PUMP CMT AF PJSM; Pump 2 bbls. water ahead, test lines to 4500 psi, pump spacer,30 bbls.MCS -4 @12.5 ppg, Mix and pump 178SX Class "G" cement W /20 %MPA -1 , 1 .5 %SMS, .3% FL -52, .2 %CD -32, 1% R -3, .05% Static free and 1 gphs FP -6 to yield 78bbls 12.5ppg Lead Slurry. Tail in w/1 77sxs "0" cement w /.7% FL -63, .5% EC-1, .3 %CD -32, .1 %ASA -301, .1 %R -3, .05% Static free and 1 gphs FP -6L to yeild 36 bbls 15.8 ppg slurry, drop dart bump plug with 219 bbls. calculated, pressure 500 psi over circ. press., 1800 psi, bleed off, check floats. OK 04:00 04:30 0.50 SETREL LNR AF Pressure drill pipe to 3200 psi , set liner hanger, work pipe to release hanger, would not release, put 112 left hand turn, released hanger, pick up 5' expose dog sub to set liner top packer, slacked off 75K sheared liner, packer and set. 04:30 05:30 1 .00 CIRC MUD AF Pick up 30' while circ. 2bpm, start circ. 10 bpm, with running tool picked up, 25 bbls. cement back to surface. 05:30 06:00 0.50 RURD CMT AF PJSM. Prep to POOH and LID 5" DP. Daily Operations Report Date: 8/2/2008 Job Category: DRILLING 24 H r Summary POOH w/S" DP.L1D running tool, -M DP, L/D down Dir. tools, change rams to 4 ", and test, install wear bushing, PN 6 1/8 bit,4" IfifWP, 4" DP, RIH to 4515' test csg to 3000 psi 30 min., RIH w/ 5" DP to top of landing collar at 8826', Circ. condition mud. opa 1_ StartTtne EtdThe Dtrars1 Ops Cole mum, oxie GlatIs Trouble code Come It 06:00 07:30 1 50 TRIP DP AF PJSM. POOH w/5" DP 5479' to 3469'. 07:30 10:30 3.00 PULD DP AF PJSM. POOH and LID 5" DP(LID total 90 joints). 10:30 11:30 1.00 PULD DP AF POOH L/D 5" HVVDP(total 21 ints). 11:30 12:00 0.50 PULD BHA AF LD liner hanger running tool. Break Baker cement head and LSD. 12:00 13:30 1.50 PULD BHA AF PJSM. LSD Directional tools. 13:30 17:00 3.50 TEST DOPE AF PJSM. C/O upper rams F/7" to 2 7/8" X 5 1/2" variable rams. Test variable rams w /4" and 5" test joints 250/S000psi 5min. Test 4" TIW, IBOP, and 5" TMVto 250/S000psi 10min. Run wear bushing. 17:00 23:00 6.00 PULD DP AF PJSM; Strap 4" MlWP, 4 3/4" jars and 4" DP. NU 6 1/8" bit and cleanout BHA.PN 21 -4" FMVDP, and 4" drill pipe, RIH to 4515' 23:00 00:00 1 .00 CIRC MUD AF Fill pipe and break circ., rig up to test csg. 00:00 00:30 0.50 TEST CSG AF PJSM;Test 7" casing to 3000 psi for 30 min. no leak off. Witness waved by Jim Pegg 81 /2008 00:30 03:30 3.00 TRIP DP AF PJSM; RIH with 5" drill pipe 174515' to 8826' tagged landing collar at 8826'. 03:30 06:00 2.50 CIRC MUD AF Circulate condition mud. Report Date: 8/3/2008 Job Category: DRILLING 24 H r Summary Circ. and cond mud. Displace well w/9.2ppg mud.Drill shoe track at first BN 405 units gas. Shut -in well and slow circ. out gas. Test CSG to 3000psi. OK Drill shoe track t/ 8826' - 8955', Drill 20' open hole to 8975', CBU, Monitor well, well flowing, CBU gas units 775, wt mud up to 9.4 #, Monitor well still flowing, CBU gas units 743, M. mud up to 9.8 #. opa StartTtne EtdTine Our OM Om ca � Actlarcode S Troeble Code Canmett 06:00 06:30 0.50 CIRC MUD AF Circ. and cond mud for cement contamination. 06:30 08:00 1 .50 CIRC MUD AF Pump spacer and C/O F/1 2.3ppg Flopro mud to 9.2ppg Flopro mud @ 340GPM. www.peloton.com Report Printed: 11/18/2008 • t Marathon Operations Summary Report � , . Well Well Name: KENAI DEEP UNIT 9 1 .. Opt I- StartTlne Bid The Drr(1 rs) Opt Code Ae1LtlrCOde Spa Troible Cock Commeit 08:00 10:00 2.00 MIX MUD AF Clean pit #4 and mix mud. 10:00 11:00 1.00 DRILL ROT AF Drill landing collar @ 8828' 250gpm 9ORPM 633psi.. Just prior to EN gas units increased to max qas 405 units. 11:00 12:00 1.00 FLOW CHEK TA WC Flow check well. Slight flow. Shut -in well on annular and observe DP and CSG pressures. DP increased from 30 to 35 psi and CSG pressure increased from 20 to 30 psi. 12:00 17:30 5.50 CIRC MUD TA WC PJSM. Slow circ. wtl .48PM through choke holding 350psi on CSG. Increase rate to 2.8BPt41 holding 350psi on CSG. Mixed 250bbls mud to increase pit volume. 17:30 18:00 0.50 TEST CSG TA WC Test CSG to 3000psit1 5 min. Lost 50psi. Good test. Release pressure. Flow check well. 18:00 19:00 1 .00 CIRC MUD TA WC Circ. bottoms up J50 gpm max gas 60 units 19:00 22:30 3.50 DRILL ROT AF PJSM; Drill float equip. f /8825' to 8955' Up wt. =170K do wt. =145K Rt wt. =160K 100 RPM, pump 350 gpm 22:30 23:00 0.50 DRILL ROT AF Drill rotate f18955'to 9875' Up wt. =170K Dn wt. =145K Rt wt. =160K 6 -9k Tq. Pump 350gpm Max. gas 70 units Drilled thru coal stringer, still in coal when stopped drilling. 23:00 01:00 2.00 CIRC MUD AF Circ. two bottoms up. 90 units background gas while circ., 200 units on first bottoms up, background on second circ. 120 units. 01:00 01:30 0.50 FLOW CHEK AF PJSM; Monitor well for flow, well flowing slightly, EPOCH recalibrate gas detector. 01:30 02:00 0.50 CIRC MUD AF Circ. bottoms up max gas at 765 units on bottoms up.Pump350 gpm 1025 psi. 02:00 04:00 2.00 CIRC MUD CS PJSM; Circ. complete mud volume and weight up from 9.2# to 9.4 #. pump 350 gpm -1025 psi.,120 units background qas. 04:00 04:30 0.50 FLOW CHEK CS PJSM; Monitor well for flow, flowing slightly. 04:30 06:00 1 .50 CIRC MUD CS Circ. bottoms up max gas 743 units, background gas 80 units. Daily Operations Report Date: 814/2008 Job Category: DRILLING 24 H r Summary Circ. and increase MW to 9.8ppg. Flow check well for 37min. Circ. 13/1_1 Max gas 898units. Circ. and increase MW to to 10.2PPG. Flow check well for 30 min. Circ. 13/1..1 max gas 625units. Shut -in well for 50 min. Circ. and increase MVVto 11 .0ppg. Flow check well for 30min. Circ. Bi1J no gas.POOH, LID bit, bit sub, RIH wI directional BHA. ops SfartTlne EidTlne Durars) Ora Code AotlutliCal Soda TroIbkCode COmme 06:00 08:00 2.00 CIRC MUD TA VdC Circ. and increase MW to 9.8ppg. 08:00 08:30 0.50 FLOW CHEK TA VVC Flow check (37min). Slight flow. 08:30 09:30 1.00 CIRC MUD TA WC Circ. all 354gpm 1000psi. Max qas 898 units. 09:30 11:30 2.00 CIRC MUD TA WC Circ. and increase MW to 10.2ppg. 354GPM. 11:30 12:00 0.50 FLOW CHEK TA WC Flow check(30min). Gained .Sbbls in 15 min. 12:00 13:00 1.00 CIRC MUD TA WC PJSM. Circ BIIJ. 360gpm 1100psi. Max gas 625units. 13:00 14:00 1.00 SECURE WELL TA WC Shut -in well with upper variable rams. DP pressure 40psi and did not change. CSG pressure 0 psi and increased to 20psi. 14:00 16:30 2.50 CIRC MUD TA VVC Circ. and increase MW to 11 .0ppg. At BN 864units gas. 16:30 17:00 0.50 FLOW CHEK TA VVC Flow check well(30min). Slight flow. Gained .25bb1 in 30 min. 17:00 18:00 1.00 CIRC MUD TA VVC Circ. Bill 360GPM 1233psi. No gas at B U. 18:00 18:30 0.50 TRIP DP AF PJSM; Check for flow pull 5 stands drill pipe. 18:30 19:00 0.50 CIRC MUD AF Pump dry job for trip. 19:00 22:00 3.00 TRIP DP AF PJSM; POOH to 5460' Check for flow and for proper hole fill.No gains No losses 22:00 01:30 3.50 TRIP DP AF Cont. to POOH from 5460' Monitor well No gains No losses 01:30 02:00 0.50 TRIP BHA AF POOH wt BHA 02:00 04:00 2.00 TRIP BHA AF PJSM; Pick uL61 18 bit and dirctional BHA 04:00 06:00 2.00 TRIP DP AF 'RIH wI Drill pipe to 5030' Report Date: 815!2008 Job Category: DRILLING 24 H r Summary Cont. RIH w/6 118" bit and Dir tools. CBU 265GPM 1500psi. Max trip gas 37 units.Cut drilling line, Serv. rig, RIH Drill 1/9238' -9695 opa I_____ ' Glartnne Bid The D l r ( l rf) Opt Code Act ill Cale S t $ Tro1ble Code comme it 06:00 08:30 2.50 TRIP DP AF Cont. RIH wt6 118" bit and dir tools. 08:30 10:00 1 .50 CIRC MUD AF CBU 265GPM 1500psi. Max trip gas 37units. 10:00 10:30 0.50 TEST LOT AF Perform FIT to 13ppg EMW(11 .0ppg, MW 900PSI, 8641TVD). www.peloton.com Report Printed: 11118,2008 • • iti Marathon Operations Summary Report MUMS Well Name: KENAI DEEP UNIT 9 ops I_ SartTlne EldTlne Dir(Irs) Opt Col ActlrttjCole =is Trott* Cock Canmeit 10:30 12:00 1.50 DRILL ROT AF Dir. drill and survey F18975' to 9050' ART= 1.1 AST =.0 260GPM 1600psi 5ORPM 7 -9K Ft-lb TQ UP 180K DN 140K Rot 160K. 12:00 16:00 4.00 DRILL ROT AF PJSM. Dir drill and survey FI9050'to 9239' ART= 3.4 AST= 0 260GPM 1600psi 7ORPM 8- 10KFt -lb TQ UP 180K DN 140K ROT 160K. 16:00 17:30 1.50 CIRC MUD AF Circ. Clean (CBUX1) 260GPM 1600psi 70 RPM. 17:30 18:00 0.50 TRIP DP AF PJSM. POOH to 8955'. 18:00 19:00 1.00 CUT WIRE AF PJSM; Cut 246' Drlg. line and slip. Adjust crown- ometic. 19:00 19:30 0.50 SERVIC RIG AF PJSM; Service rig and top drive, adjust brakes. 19:30 20:00 0.50 TRIP DP AF PJSM; RIH FP8955'to 9238'. 20:00 00:00 4.00 DRILL ROT AF PJSM; Dir. drill and survey F/9238' to 9428', ART= 3.3 AST =0 255GPM,1650PSI, Up wt. =185K Da wt. =145' Rt wt.= 165K Tq. =8 -10K 7ORPM No Gains No Losses 00:00 06:00 6.00 DRILL ROT AF PJSM; Dir drill and survey F19428'- 9695', ART =4.9 AST =O 260GPM, 1600PSI, Up wt. =190K Dn wt.= 145K Rt wt. =168K Tq. =7 -10K RPM =70 Max. gas =90 units No Gains No Losses. Decreased Mi+FP11 .Oppg to 10.6ppg. Daily Operations Report Date: 8.612008 Job Category: DRILLING 24 M r Simmary Drill FP9695' to 9790'.CBU flsample, Drill F/8790'- 9850', CBU, Check flow, POOH t.shoe, Serv.Rig, RIH t /9850', Circ. Hi -visc. pill, POOH, RN Wireline. Cps L_. St3rtTlne EldTlne Dir (I rs) Cos Code Actlitl/Cak Sratls Trouble Cale Came it 06:00 08:30 2.50 DRILL ROT AF PJSM;Dir drill and survey F/9695' to 9790'.ART =2.1 AST =0 Up wt. =190K Dn wt. =150K Rt wt. =173K Tq =8K No gains No losses 08:30 10:30 2.00 CIRC MUD AF Circ. samples A 9790'. 10:30 12:00 1.50 DRILL ROT AF PJSM;Dir drill and survey F19790 to 9820'.ART =0.6 AST =0 UP WT. =190k DN WT. =150k RT WT. =173k TQ. =8.5 No gains no losses . 70 RPM 5 -12K bit wt. 12:00 13:00 1.00 DRILL ROT AF PJSM. Dir drill and survey F19820'- 9850'.ART =0.6 AST =0 Up wt. =195K Dn wt. =150K Rt wt. =175K No gains No losses 5 -10 K Bit wt. 70 RPM 255GPM 1600psi 13:00 14:00 1.00 CIRC MUD AF Circ. clean. 255gpm 1600psi 7ORPM. 14:00 15:00 1 .00 TRIP DP AF PJSM. Flow check and POOH wet to CSG shoe @ 8955'. Tight C 9493' and 9187'(15 -20K over). 15:00 15:30 0.50 SERVIC RIG AF PJSM;Service rig. 15:30 16:00 0.50 TRIP DP AF PJSM; RIH to 9850' circ. last 15' to bottom. No tight spots. No fill. 16:00 18:30 2.50 CIRC MUD AF Pump 50bbI hi -vis sweep. Circ. clean. 250GPM 1600psi 7ORPM. 27 units trip gas. 18:30 00:30 6.00 TRIP DP AF Flow check. Pump dry job. Drop 2 5/16" drift. POOH(SLM) tight @ 9670' and 9628'(15 -20K over) 00:30 02:00 1.50 TRIP BHA AF PJSM; POOH with BHA Lay down directional tools. 02:00 02:30 0.50 CLEAN RIG AF Clear rig floor. Load out BHA. No correction to SLM. 02:30 06:00 3.50 LOG OH AF PJSM; Rig up and run Quad combo logs with Weatherford. Report Date: 81712008 Job Category: DRILLING 24 H r Slmmary Run Quad Combo, Bit run, CBU, POOH Run MFT logs. ops S1artTlne Eid The Dir firs) Opz Code AuWgVCole Stags Troibii Cale Commeit 06:00 13:30 7.50 LOG OH AF Continue Running Quad combo logs Poh with quad combo tools on E -line and lay down. Rig down e -line and tools. Note Caliper Logs showed excessive wash out in 6 1/8 hole section 13:30 19:00 5.50 TRIP DP AF AJSM; Make up 6 1/8 bit and bit sub rih ( clean out run) to 9850' Hole slick no fill. 19:00 19:30 0.50 TRIP DP AF Circ. 15 mins.at 250GPM, POOH to 7" shoe at 8955'. 19:30 21:00 1.50 CIRC MUD AF Circ.(2) bottoms up clean out well and circ. out gas, Max. gas =1300 units 21:00 03:30 6.50 TRIP DP AF PJSM; POOH for MFT logs.Hole slick no gains no losses 03:30 06:00 2.50 LOG OH AF PJSM; Rig up WLS for MFT logs and run logs. Note: Monitor well with trip tank Report Date: 81812008 Job Category: DRILLING 24 hir simmary Run MFT Logs www.peloton.com Report Printed: 1111812008 • • (tivi) Maratha Operations Summary Report _OiICompany Well Name: KENAI DEEP UNIT 9 ops SL3rtTlne 6dTtne Du OM Opt Code PuKLttCale Strds TroilA Cccle Canmert 06:00 06:00 24.00 LOG OH AF Continue running MFT pressure logs. at 9657' , 9652' , 9647' , 9642' ,9637' , 9627' ,9617' , 9607' , 9597' , 9592' , 9585' , 9508',9502',9495',9472, and 9465'. POH with MFT tool and clean pads. RIH and Retake pressures at 9472 and9465' Continue testing at 9457',9452',9442',and 9435' Attempt to test at 9195' Tool plugged POH with MFT tools to clean up pads.RIH Log F19138' -9055' POOH Clean pads on logging tool, RIH Log F■9642'- 9150', Note as per MOC geo take repeats for a total of 103 pressure points. Daily Operations Report Date: 819)2008 Job Category: DRILLING 24 H r Summary' Move to Completion phase ops L— St3rtTtne EldTtrie Der(I ra} Ops Cale ActLtl/Caie Slain Trorbk Ccde Canmeot 06:00 07:30 1.50 LOG OH AF POH with RFT tools on E -line and lay down. Move to completion phase 0730hrs 8 -8 -08 Report Date: 819,12008 Job Category: DRILLING 2t Hr Srmmary RIH, Circ.130 SPM- 255GPM, 1150 psi, POOH to shoe, Circ. hole clean,1382 units gas, POOH, Pull wear ring, R1J tor BOP test, ops L_. SgrtTtne EidTtne DurOrs) Opt Code AcwtliCa]e St3trs TrolbleCcde Comm it 07:30 14:00 6.50 TRIP DP AF PJSM;MIJ 6 118 Bit and Bit sub RIH Fill drillpipe at 3000',6000' 9000' Rih and tag bottom no till. No Gain Loss Hole slick 14:00 14:30 0.50 CIRC MUD AF Circulate open hole volume 260gpm 1350psi 14:30 15:30 1.00 TRIP DP AF Monitor well Poh to 8955' 7" shoe . Hole slick no gain/ loss Note: Dropped Hand held drillpipe wiper in hole attempt to recover, no success. ( rubber) 15:30 17:00 1.50 CIRC MUD AF Circulate and clean up Gas. 330gpm 1375psi. Max gas on bottoms up 1382units. Continue circulating until gas cleans up. Small amout of cuttingsover shakers.Up wt. =190K Dn wt. =140K Rt.wt. =170K Tq. =10K Pump 350GPM 1400 psi 17:00 22:30 5.50 TRIP DP AF PJSM;Monitor well pump dry job POH f/ 8955' Lay down jars, bit sub, and bit. No gaintLoss 22:30 23:00 0.50 RUNPUL WHSH AF Pull wear bushing. 23:00 06:00 7.00 TEST BOPE AF PJSM; Riq up to test BOP1=,Test Annular, dart valve,Ckeck valve, Choke mamifold valves #10,11 ,12,Upper rams, 5" floor valve,Out side kill ,Choke manifold valves #6,8,9, Inside kill, Choke manifold valve #2,7,5 Lower rams. Note Door leaking on pipe ram, Found loose bolt on door. Retest Ok. Preform accumlator drawdown test all items passed Report Date: 8/10/2008 Job Category: DRILLING 24 H r Slmmarf Finish BOP test, Install wear ring, Change out bails, RN to run 4 1/2, Wait on bow springs, RIH wI shoe track, RIH w1 4 112 liner, CIO bails, elev., M1J Liner hanger assy., Circ. liner volume, RIH w) drill pipe, Wash down f18780'- 9850', MN cmt. hd. and 2" line, Circ. reciprocate, Up wt. =198K Dn. wt. =130K 176 gpm, 850 psi. ops SlartTtne ErdThe DIritirsl ore Actka•C6]e Sratrs Trolbk Came it 06:00 08:00 2.00 TEST BOPE AF Continue testing BOPE. Test 4' floor valves, Blind rams. Test gas alarms and flow PVT system. Witness waved by Chuck Shevey AOGCC 08:40hrs 8 -7 -08 Gave notice Tim Lawlor BLM 8- 7- 08:45hrs 8 -7 -08 08:00 08:30 0.50 RUNPUL WBSH AF Set wear bushing, R/D test 08:30 13:00 4.50 RURD CSG AF PJSM: CEO bails elevators Rig up casing tools 13:00 14:00 1.00 WAITON EQIP TS MDCE Wait on Centrailzers . 14:00 01:00 11.00 RUN CSG AF PJSM : Make up and bakerlok4 1/2 liner shoe track. Check Floats Run 27 jts 4 1/2 L -80 Hydril 563 Liner. W th jam system. Torque to 5500fp. Change out Elevators and bails. PN and MN BOT Flex- lock Hanger and ZXP liner top packer. Continue RIH with 4 112 liner on drillpipe 01:00 01:30 0.50 CIRC MUD AF Circ. liner volume at 7" shoe 8955' Up wt. =179K Dn wt. =125K Rt wt. =150K Tq =7K l25 RPM Pump71 spm, 140gpm, 550 psi 01:30 02:30 1.00 RUN CSG AF PJSM;RIH with 4 112 Liner F18955'- 9780', Wash down F19780' -9850' Hole slick no fill , no gains , no losses. 02:30 03:00 0.50 RURD CMT AF Make up cement head and2" cmt line. 03:00 06:00 3.00 CIRC MUD AF Circulate and recipicate pipe, 80 spm 176 gpm, 850 psi. Up wt. =198K Dn wt. =t30K - lax. gas bottoms 680 units. www.peloton.com Report Printed: 1111812008 • • (Ail) Marathon Operations Summary Report s O n Com pany Well Name: KENAI DEEP UNIT 9 Daily Operations Report Date: 8/1112008 Job Category: DRILLING 24 H r Summar Pump Cmt., Set liner hanger packer assy.Liner top at 8691' liner Shoe at 9845' ,POOH, LA7 4" HOOP, PtJ Polish mill and scrapers,RIH W1DC. ops L_ SlartTme Elf/ Time Our Ors) OpsCode A,ciLFVCode Sins Trouble Cal Came It 06:00 08:30 2.50 PUMP CMT AF PJSM : Pump 2bbls I-12o and test Cement lines and head to 4000psi Batch mix and pump 40bbls l l ppg Seal bond spacer Followed by 28.92bbls 89sacks 13.5ppg class G cement with Yield of 1 .825 cuttlsk 9.221 gallsk 4:02hr.thickening time V4th10% BA 90+ 2.5% BA- 56, +.5EC -1 + .SSMS,+ .3 %, Cd- 32, +.1 %ASA -301 ,+ .1 R -3,+ .05 Static Free. + 1 GPS FP -6l . Close Head and pump 5bbl H2o To clean lines. Open head pump 20bbls 6 %kcl to launch plug Continue displacment Wl 116bbls 10.6ppg mud. at 600psi Picked up liner plug at 119bbls pumped pressure increased to 1600psi. then dropped to 700 At 137bbls plug bumped increase pressure to 1200psi Hold pressure for 3min, bleed off pressure, floats held. Cement in place at 0814hrs 100% returns During displacement of liner placed 20bbI of 6 %kcl inside liner. Note: Attempted to rotate liner, torque 6000 +klbfp. Recorocate pipe during cementing .up to the point of bumping Plug. 08:30 12:00 3.50 SETREL LNR AF Fressu to 11UU psi, slack off setting 40,000# on liner hanger, pressure to 3300psi to release running tool, bleed off pressure, Pick up to 200,000 #, Slack off liner still attached, pressure to 4000 psi, to release running tool,Pick up wt. 180,000 #, running tool released, stop and pressure to 500 psi on drill pipe, Pick up to 195,000 #, slack off bleed press. off, set 40,000# on hanger, engaged dog sub on liner top packer, packer sheared and set with 45,000# string weight, Circ. 36 spm, 500 psi , pick up out of liner top, Circ. out cement at 9 bbls. min. saw 1 -7 hhle rmt �t surface. Liner shoe at 9845' Liner top at 8691' 12:00 17:30 5.50 TRIP DP AF PJSM;Rig down curt. hd.,POOH wl5" drill pipe 17:30 19:00 1 .50 TRIP BHA AF POOH wl 4" I-M DP and lay down. 19:00 23:00 4.00 WAITON CMT AF PJSM; WOC, Measure 4 112" tubing for completion , measure BHA for scraper, polish mill run. 23:00 06:00 7.00 TRIP DP AF PJSM; Pick up scraper and polish mill RIH wl drillpipe, Run scrapers for 7" and 9 518 " casing. Report Date: 811212008 Job Category: DRILLING 24 HrStmmary Slip drilling line, Serv. rig, RIH ti liner top at 8691', Dress liner top, Displace well with 8.6KCL Brine. POOH laying down drill pipe and BHA, RAJ to run 4 112 tubing, RIH wltubing o p` L_ Startrme EldTme Oirrlra) Ops Code A,cJtliCode Suds Tr,A Garnett 06:00 07:00 1 .00 CUT ARE AF PJSM;Slip Drilling line 33' 07:00 08:00 1 .00 SERVIC RIG AF PJSM: Service rig. Crown Topdrive,Blocks and carrier drive lines 08:00 09:00 1 .00 CLNOUT CSG AF RIH fl 8548' -8691' ( top of ZXP liner top packer) Polish packer seal bore 30rpm 400psi 31 spm. Note: tag top of ZXP at 8691'.Up wt. =185K Dn wt. =120K Rt wt. =150K Tq. =11 K 09:00 11:00 2.00 CIRC CFLD AF Circulate and displace hole with 365bbls 6% 8.6KCL 1150psi 336gpm 11:00 12:30 1.50 TEST CSG AF PJSM; Test 4 112 liner to 4000psi for 30min. Initial pressure 4000psi Final pressure 4000psi 12:30 00:00 11 .50 PULD DP AF PJSM : Pump KCL dry job with conqor 303 inhibitor POH lay down drillpipe from 8690' Note: Flush out drillpipe with H2o and Lube Box and pins. 00:00 00:30 0.50 TRIP BHA AF PJSM; Lay down scraper and polish mill. 00:30 03:00 2.50 RURD CSG AF PJSM; Pull wear bushing, Clear drilling tools from rig floor, change out bails and pick up 4 1/2 tubing elevators, Rig up tubing tongs. 03:00 06:00 3.00 RUNPUL TBG AF PJSM; With Weatherford and rig crew, Pick up seal assy. RIH wl4 112 Hydril 563 12.60# L -80 Tubing Report Date: 8,1312008 Job Category: DRILLING 21 HrSummary Run 4 112 tubing, Land hanger, and test, N.ID BOP, ops StartTme EYdTme DurOrd) Opt Cal A,ctli Cale SIM TrOubkCc44 Canmeit 06:00 12:00 6.00 RUNPUL TBG AF Continue Running 4 112 Tubing ti 8681' Up wt. =130K Dn wt.= 90K Ran total of 223 joints. 12:00 14:30 2.50 CIRC CFLD AF PJSM; Pump inhibitor space out and land tubing hanger seals at 8691'. Pump at 3bbls per min 285psi. www.peloton.com Report Printed: 11/1812008 • • Operations Summary Report Oil Company € Marathon Com n PanY Well Name: KENAI DEEP UNIT 9 C) -- aps - L_ St3rtTlne EldTlne Di (irs) Ops Cole Actke4/COle Scads Trouble Code Canme.t 14:30 16:30 2.00 RUNPUL TBG AF Space out 4 112 tubing by placing 2 pups under tubing hanger Total of 14.6' for 2.14stick up PBR. Nate Add 4 1/2 BTC X hydril 563 Crossover pup under Tubing hanger 16:30 17:00 0.50 TEST VVLHD AF PJSM; Test tubing hanger to 5000 psi. for 10 min.Good test 17:00 17:30 0.50 TEST TEG AF PJSM; Test tubing and tie back seals to 4000 psi for 10 min. Good test. 17:30 21:00 3.50 RURD CSG AF PJSM;Rig down Weatherford tongs, clear floor, Lay down elevators, and bails. Flush choke lines, and BOP, blow down all Iines.Flush and clean pits. 21:00 02:30 5.50 NUND BOPE AF PJSM; Nipple down BOP. 02:30 06:00 3.50 NUND TREE AF PJSM; Nipple up tree.Test void to 5000psi f110 min.Test tree 500 psi low 10 min. ,5000 psi high 10 min. Daily Operations Report Date: 8/14/2008 Job Category: DRILLING 24 H r S!mmarye Rig down GD -1 opc L_ SlartTtne EydTine Dur$rSa Ops Cock AciLll/COle Stags Trouble Co:* Come it 06:00 18:00 12.00 RURD RIG AF Rig down top drive and torque tube . Remove berm.R/D beaver Slide and cat walk. Pull service lines. Remove pump #3, Hanson and Cuttings tank. Scope down mast. 18:00 00:00 6.00 RURD RIG AF PJSM w/ crane operator: Crane down back windwalls, landing stairs, dog house, choke house, BOP connex, grey iron, flowline, fuel tank. 00:00 01:30 1 .50 RURD RIG AF PJSM: Crane out flowline & grey iron on driller's side. Pull snub post & lay over front windwall. Crane off fuel tank. 01:30 06:00 4.50 RURD RIG AF PJSM: Lay over mast, fold up skirts, lower carrier off pedestals, secure upper to lower derrick w/ chain, drive carrier off mud boat, fold up mud boat. Split pits for move. Report Date: 8114 Job Category: DRILLING 24 H r SImmary RrD GD -1 ops SttrtTlne Eid Ttne Dir(irs) , OpsCOde ActWVCO]e S3gs Trolbk Ccmmeirt 06:00 12:00 6.00 RURD RIG AF Continue RD and load out GD -1 . GD -1 Released to KBU 42 -7 At 1200hrs 8- 14-2008._ Report Date: 811912008 Job Category: COMPLETION 24 H r Summary Run CBL/GR/CCL tied into open hole logs- Compact Triple Combo -run by Weatherford wireline dated August 6th, 2008 ops SflrtTtne EidTine De rs) Ops Code ActLt4iCOde Sins Tro‘ble COde Come it 13:00 14:00 1.00 SAFETY MTG AF Get work permit at Kenai gas field office, remove lockout chains from wellhead valves, spot equipment and hold PJSM - topics - overhead loads wlcrane, pinchpoints, active gas production pad. Red lights for fires, blue lights for gas releases, sirens, muster points, taping off driving lanes, proximity to drilling riq conducting fishing operations on KBU 42 -7RD. 14:00 15:15 1 .25 RURD ELEC AF Rig up crane, wireline unit, downhole tool 15:15 17:30 2.25 RUNPUL ELEC AF Run in hole with CBL/GR/CCL tool. Tie into open hole logs - Compact Triple Combo -run by Weatherford wireline on August 6, 2008. PBTD should have been 9758 ' MD. First reading of logging tool at 9514' MD. Appears to have 244' of fill across D4 sand. D3B sand has good cement job which continues up to bottom of 7" liner at 8953' MD. There is a thin cement sheath up to the ZXP packer top at 8704' MD. 17:30 18:00 0.50 RURD ELEC AF Rig down wireline unit. 18:00 18:30 0.50 SECURE vbELL AF secure wellhead for evening, sign out at gasfield, turn in work permit Report Date: 10/1312008 Job Category: COMPLETION 24 HrG;mmary Rig up BJ Coil, pressure test BOP, Rig up flow back tanks to reverse fluid out of hole. opa L_ St3rtTtne ad The Dur(irs) OpsCOle A:WIVCOle Stags Trouble Cale Cdnme 08:30 09:00 0.50 SAFETY MTG AF Hold PJSM. Topics discussed included operations under cranes, manlifts, pinch points, trapped pressure, pressure testing operations, slips, trips, falls, active gas production pad - red lights for fire, blue lights for gas emissions, sirens, muster points, buddy system, 3 second rule, ice and slippery equipment. 09:00 09:15 0.25 WAITON REGS AF Obtain permits and go over procedures with pad operator www.peloton.com Report Printed: 11/18/2008 • • Marathon Operations Summary Report ,up Oil Company Well Name: KENAI DEEP UNIT 9 apt SgrtTme Eld The I) r (I rs) Opt COde Acturvoode Sates Troubk Cale Come It 09:15 14:45 5.50 RURD COIL AF Rig up coil unit and flow lines to flow back tank and Methanol tank to pressure test BOP 14:45 16:00 1.25 TEST BOPE AF Perform BOP test, passed. 24 hour notice given to Jim Regg on 10110/08. Mr. Rego waived ansite inspector. 16:00 16:15 0.25 SECURE WELL AF Secure wellhead for evening. Sign out crew at operators office. Turn in work permit for evening Daily Operations Report Date: 10)14/2008 Job Category: COMPLETION 24 H r simmary Shell tested injector head, inside reel valve and one way check valve from N2 pump to flow line exiting fluid pump. Near Miss on one way check valve failure. Documented via Mapline. No procedures for install of checkvalve and apparently poor design. These need to be validated for safety immediately before someone is hurt or spills occur during mandatory pressure testing daily. Replaced valve and reversed water out of wellbore. Trapped 2200 # in wellbore for underbalanced perforating. ops SlartTme 6d Tine Our OM Opt Cale Ac1rtlVCode Stads Trouble Cale Came it 08:30 09:00 0.50 SAFETY MTG AF PJSM - obtain permit - Topics - slips, trips, falls, overhead loads, active gas production pad, red lights for fires, blue lights for gas emissions, sirens, muster area, smoking area, emergency calls to 283 -1305 for minor emergencies, 911 for major emergencies, anyone can stop the job etc., three second rule, buddy rule for emergencies. 09:00 10:30 1 .50 RURD COIL AF rig up injector head, BHA and coil connector 10:30 11:30 1 .00 TEST ROPE AF pull test connector to 14000# - passed, shell tested injector head to 2000# - passed 11:30 12:30 1.00 TEST EQIP TA MSCT new check valve between N2 unit and fluid pump failed. Near Miss documented on Mapline. Design issues and installation procedures with no documentation.. 12:30 13:00 0.50 TEST EQIP AF replaced check valve and pressure tested - passed 13:00 14:00 1.00 RUNPUL COIL AF start in hole with CT. start N2 at 500 scfhin 14:00 15:00 1.00 RUNPUL COIL AF depth - 3500 feet, rate - 75 ft / min, wh pressure - 707 #, N2 rate - 475 scf 1 min 15:00 16:00 1.00 RUNPUL COIL AF water returns at 4200 feet, rate - 75 ft / min, N2 rate -500 scf/min 16:00 17:00 1 .00 RUNPUL COIL AF Depth 7383 feet, rate in hole - 0 ft/min, N2 rate 1200 scflmin. Talked engineer to go into hole at same rate we are displacing fluid. 30 feet per min for 112 BPM and 15 feet per min for 114 BPM returns in 7 inch casing 17:00 18:00 1.00 RUNPUL COIL AF depth 8000 feet, rate in hole 30 feet 1 min, N2 rate 1200 scflmin, WH pressure 2160 #, returns - 112 B'WM 18:00 19:00 1 .00 RUNPUL COIL AF depth in hole 9060 feet, rate - 25 ft 1 min, returns 114 BPM 19:00 19:30 0.50 RUNPUL COIL AF depth in hole 9355 feet, WH pressure - 2600 #, N2 rate 1145 scf /min, returns 114 BPM green cemebt 19:30 20:30 1 .00 RUNPUL COIL AF - depth in hole 9500 feet., WH pressure 2628# returns 114 BPM green cement. N2 rate 1150 scflmin. Maintain rate until pump pressure drops below 2500# and tubing pressure drops below 150 #. Continue into well at tubing rate under 20 feet 1 min. Set down at 9514 feet. No increase in pump pressure or tubing pressure. Pull up and set down 2 more times. No increase in weight, well head pressure or tubing pressure. No more green cement returns. Start out of hole. Contact Houston if they want to mill 64 feet of rathole down to 9578' or perforate zone as is. 20:30 22:00 1 .50 RUNPUL COIL AF 'POOH 22:00 23:00 1.00 SECURE WELL AF secure wellhead for evening. Wait on orders to mill rathole or waiting on sundry to perforate zone. Pressure on wellhead 2200 #. Bled pressure off tubing, set back injector head onto cradle, turned in work permit. CTU crew will be off at least 10 hours from release from well. Report Date: 10/16,2008 Job Category: COMPLETION 24 H r Summary Mill and fill and reverse H2O out of hole wM2 Ops L_ SttrtTme EYO Tme D4 (Ire) Opt Code Actimicocie Suds Trotbk Code Came it 07:30 08:30 1 .00 SAFETY MTG AF www.peloton.com Report Printed: 11 )1812008 • • Marathon Operations Summary Report Ammon s Oil Company Well Name: KENAI DEEP UNIT 9 ops L_ SlartTrne EIOTtne Dir4r17 Opt Code ActlAtiCccle Status Troubk Cammert 08:30 09:30 1 .00 GAUGE TANK AF PJSM- Obtain work permit, topics- job assignments, review job, active gas production pad, red lights for tire, blue lights for gas emission, sirens, muster area, simultaneous operations, smoking area, slick containment, strapping tanks, tool dimensions, lengths. Need additional lubricator 09:30 10:30 1 .00 PULD EQIP AF strap tanks, measure tools. 300 BBL in blue tank, 140 in red tlowback tank, 240 BBL usable after loading casing and tubing. 10:30 12:30 2.00 TEST EQIP AF Navidril motor - od - 2.87 ", length 11.80', mill -od- 3.80 ", length 1.24'. Change in procedure approved to drop off motor and mill before reversing fluid out of hole so will not run circulation sub. Pull test 20K - passed, pressure test 250 1 4500 - failed. Baker Oil Tools test fixture with needle valve (internals) to drain coil failed under pressure. No problem with housing, capped end w11 OK blanking plug, re- tested- passed. Removed test fixture. Make up mill and motor. Set injector head and lubricator on wellhead, shell test - passe 12:30 14:30 2.00 RUNPUL COIL AF run in hole with motor and mill. Rate in hole 39 feet per minute. Incrased tubing rate to 80 ft/min. Coil stopped at 1100 feet (18 deg. deviation). attempted 4 time stopped same depth each time. Pulled out of hole above BOP. Bleed off N2, load hole w 1 KCL that has friction reducer in it and re- attempt. 14:30 15:30 1.00 RUNPUL COIL AF run in hole with motor and mill. Fluid filled with KCL water and friction reducer. Tool stopped at 100 feet. backed off pressure on packoff, tool went down okay and through 1100 feet with minimal weight loss. 15:30 17:30 2.00 RUNPUL COIL AF depth in hole 8600 feet - tubing rate 10 feet per minute. continue speed until 8710 feet. Resume 80 feet per minute tubing rate until 9450 feet CT depth Pickup weight -30K, pump rate - .75 BPM, pump pressure -140 psi, weight going in hole -15K 17:30 18:00 0.50 RUNPUL COIL AF depth in hole 9500 feet. small bridge at 9508. milling about 1 foot l minute. Pump rate .8 BPM, Pump Pressure 650# 18:00 22:30 4.50 WORK COIL AF depth in hole 9719. Milled on one foot interval for 3 hours. Stalled mill multiple times, Made approx. one foot. down to 9720. We are one ioint above where PBTD should be (9758). Coming out of hole and laying tools down for evening. 22:30 00:00 1 .50 RUNPUL COIL AF back to surface, circulating .8 BPM all the way back to the surface Daily Operations Report Date: 10117/2008 Job Category: COMPLETION 24 H r SIMMER' Rig up CTU, mill and motor, clean out to TD opt S1artTlne EHdTrne Our 6rs] Ocs Code Ae1LtuCock Stalls Tro,ble COOe come It 23:55 00:55 1 .00 RUNPUL COIL AF pull CT with mill and motor out of wellbore 00:55 01:25 0.50 RURD COIL AF rig down lubricator, injector head, motor and mill 01:25 01:55 0.50 SECURE VVELL AF secure wellhead for evening, sign out and turn in work permit Report Date: 10117/2008 Job Category: COMPLETION 24 H r Slmmary Rig up CTU to reverse fluid out of hole using N2 opt Startnne EidTtne DlrrYrn Opt Code AcznrCOde S$ds TroOkCale canme 14:00 14:30 0.50 SAFETY MTG AF PJSM- obtained work permit - safety topics- slips, trips, falls, simuftaineous ops occuring on pad, red lights for fires, blue lights for gas emissions, sirens, buddy rule, three second rule, muster area at work trailer due to pad expansion, review of job, job assignments, communications. Mike will give hand signals to crane operatior and have vest on. 14:30 15:30 1 .00 RURD COIL AF rig up coil tubing unit, move lubricator from previous milling operation off work area. Rig up injector head and prepare for shell pressure test using methanol. 15:30 16:30 1 .00 TEST BOPE AF shell test injector head, BOP, coil and flow lines including check valve from N2 pump into flowlines 1200# - passed. Pump 25 BBL methanol back into methanol tank from CT and wellhead. 16:30 18:00 1.50 JAR N2 AF go into hole jetting 500 scf/min, tubing rate - 75 FPM. At 5000 feet at 17:45 hours, increase N2 rate to 1200 sctl min. , VIMP -1560# 18:00 19:00 1 .00 JAR N2 AF Depth 5850, VVHP - 2066# Tubing rate 74 FPM 19:00 20:00 1.00 JAR N2 AF Depth 7382, N2 rate 1200 scf 1 min, VVHP 2170# www.peloton.com Report Printed: 11/18/2008 • • �,,� Marathon Operations Summary Report „ , s Oil Corn[any Well Name: KENAI DEEP UNIT 9 Ops SgrtTlne EidTlne DurprSa OpaCak FocritlyCNe S1atls TroubkCade Canme 20:00 20:30 0.50 JAR N2 AF Depth 7330, N2 rate 560 scf/min, tubing rate 31 FPM, WHP - 2532# 20:30 20:45 0.25 JAR N2 AF Depth 8000, N2 rate 1200 scf 1 min., VV 1P- 2400 20:45 21:30 0.75 JAR N2 AF Depth 9700, N2 rate - 1200, VVHP - 2247# 21:30 22:00 0.50 JAR N2 AF Depth 9650, N2 rate - 1000 scf 1 min, WI-1P- 2700# no returns 22:00 23:00 1 .00 JAR N2 AF Depth 9391, N2 rate 700, VN-iP 2728# , no returns 23:00 23:45 0.75 JAR N2 AF Depth 8374 #, N2 rate 500 scfRnin, no returns, VVHP 2717 #, nozzles are plugged. Prepare to load coil to pump out plugged nozzles. Daily Operations Report Date: 1011812008 Job Category: COMPLETION 2l H r Summary Continue to reverse out fluid ops StartTlne ErdTlne Dtrnrs) OpsCode ActlirtiCale S t Trorble Cok Canmert 23:45 01:00 1.25 PUMP N2 CS Nozzles plugged in coil BHA. Pump N2 into coil and pump out plugs in nozzles. RIH with coil to fluid level at 8655 feet and bleed pressure in cot to flow back tank. Total returns 131 .7 BBL 01:00 02:00 1 .00 JAR N2 AF Continue to reverse circulate N2 02:00 03:30 1 .50 PUMP N2 CS Nozzles plugged once again. Pump nitrogen into CT until plugs are pumped out. Nozzles cleared at 03:30 am. 03:30 04:30 1.00 JAR N2 AF Depth 8800 feet, VVHP -2169# , N2 rate 1000 scf 1 min. Total returns 140 BBL. 04:30 05:00 0.50 JAR N2 AF Depth 9550, VVHP - 1800 #, Total returns, 150 BBL, gas returns to surface. service unit out of N2. Heading out of hole 05:00 07:00 2.00 RUNPUL COIL AF Pull CT out of hole, lay down Injector head, spot methanol over BOP and wellhead. 07:00 07:30 0.50 SECURE WELL AF secure wellhead tor evening, turn in work permit, sign -out Report Date: 1011912008 Job Category: COMPLETION 24 H r Simmary Pressure casing to 2200 #, rig down , move to KU 21 -6RD ops StartTlne ErdThe Dlr(1rL} Ops Cale A,atlirliCak Stalls Trouble Cade Came it 10:00 10:30 0.50 SAFETY MTG AF Obtain work permit, - PJSM - topics - slips, trips falls, rigging down, ice, containment slippery, overhead loads, cold wind, active gas prod. pad, red lights for fires, blue lights for gas emmission, sirens, muster area, smoking area etc. 10:30 11:30 1.00 RURD COIL AF rig down fluid pump, transfer N2 from tanker to N2 pump truck 11:30 12:00 0.50 TEST BOPE AF Pressure test flow lines and check valve from N2 pump - passed 12:00 13:00 1 .00 PUMP N2 AF Pressure up VVH. Initial pressure 1580 #, N2 rate 1200 sof 1 min 12:30 - V 1-1P 1950 #, @12:40 M-IP - 2224 #. Shut in downhole, close wellhead valves to trap pressure, open blind rams on BOP 13:00 14:15 1 .25 RURD COIL AF Rig down GOP's, flange up wellhead cap, test cap to 650 #, bleed off pressure. Secure wellhead. Move equipment to KU 21 -6RD Report Date: 10/23/2008 Job Category: COMPLETION 24 H r Simmary Run gauge ring, perforate 9490 -9508 ops SgrtTlne Eld The Du r it rel Opt Cale pctmcc.k Statls Tro4ble Calk Came et 08:30 09:30 1.00 SAFETY MTG AF sign in at office, obtain work permit, PJSM - topics - active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area at trailer due to construction traffic, job assignments, overhead loads, pinch points, slips, trips, falls, working under high pressure, pressure test to 4500# 09:30 10:00 0.50 RURD ELEC AF Rig up wireline unit. ground test manlift - failed, won/ come down. Call mechanic, look for new unit while mechanic enroute 10:00 12:30 2.50 VVAITON EQIP TA MSOT Wait on rental manlift mechanic, road a manlift from G &I in order to continue operations 12:30 13:30 1.00 TEST BOPE TA MSOT pressure test BOP and lubricator to 4500 #, leak on nitecap flange, bleed off and retest 13:30 14:30 1.00 TEST BOPE AF pressure test lubricator and wireline BOP to 4500# - passed 14:30 16:00 1 .50 RUNPUL ELEC AF Run Gauge Ring w1 3.80 " diameter to 9720', pull out of hole 16:00 16:15 0.25 SAFETY MTG AF hold explosive safety meeting with sim' u neous operations and set up safety procedures to stop radio 1 cell phone traffic while arming gun www.peloton.com Report Printed: 1111812008 • • A n % Marathon Operations Summary Report ammo s OiIICompany Well Name: KENAI DEEP UNIT 9 ops I_ sartTme E■ Tine Der (rs) Ops Case A,ctl,tliCOae Strus Trotbk Coo? Canme It 16:15 18:00 1.75 PERF CSG AF perforate Deep Tyonek D3b zone from 9490 - 9508' with Owen's 21 gram charges in 3 3/8" guns. shot density 6 spf - 18 foot interval. 2250# of N2 on wellhead. Immediately upon shooting, the wellhead pressure jumped to 2400 # steadily climbed to 3100# in two minutes. Leveled out at 3200 # in a�pprox. 30 minutes 18:00 19:30 1.50 RUNPUL ELEC AF Pull perforating gun out of hole 19:30 20:30 1.00 RURD ELEC AF Rig down wireline unit, lubricator, wireline BOP. 20:30 21:00 0.50 SECURE WELL AF secure wellhead, leave location sign out 21:00 21:00 Daily Operations Report Date: 11!13!2008 Job Category: COMPLETION 2i Hr Summary Ran Static PT survey. Fluid level at 9042', perfs at 9500' Ops SartTlne EYdTlne D4r(1rs) Opt Code A,cUrtliCWe Strds Trouble Code Canmeit 09:00 10:00 1 .00 WAITON ORDR AF Wait for data on DU -9 shut in pressure 10:00 10:30 0.50 SAFETY MTG AF Discuss Pollard JSA. Assign tasks. Issue permit. 10:30 12:15 1.75 RURD SLIK AF Spot and RU Unit. PU memory PfT tools 12:15 12:45 0.50 TEST EQIP AF Test lubricator to 4250 psi with McOH. Good test. 12:45 16:15 3.50 LOG CSG AF Log PT at 120 FPM to 9000' the 6 -0 FPM to 9550'. Wait on bottom for 30 min then POH. P @ 9550' = 4088 psi, P G 9000' = 3871 psi, P @ surface = 3200 Psi. = CtJ3(A..c) 'Y gi. 'k.1 ., 16:15 17:30 1 .25 RURD SLIK AF tag own and release equipment. tested tree cap with 3200 psi well pressure. Close permit and sign out. I www.peloton.com Report Printed: 1118/2008 • • Marathon KDU 9 FORMATION TESTER TEST SUMMARY Test Hyd Pres Hyd Pres Tool Flow Drawdown Final Shut No. Depth TVD Before After Volume Rate Press in Press Remarks 1 9657.00 9343.66 5235.00 5236.00 5.0 0.5 33.00 1477.00 GOOD 1 2 9652.00 9338.66 5234.00 5234.00 5.0 0.5 31.00 77.00 TIGHT 2 3 9650.00 5233.00 5233.00 5.0 0.5 33.00 49.00 TIGHT 3 4 9647.00 9333.66 5231.00 5231.00 5.0 0.5 60.00 156.00 TIGHT 4 : .,.. :. _ . a m t 7 _� � .a��e 5 522$ 00 , 5229.00 " , , 5.0 0.5 88.00 581.00 GOO* .' 6 6 9637.00 9323.66 5226.00 5226.00 5.0 0.5 135.00 582.00 GOOD 7 8 hol 5221.00 5221.00 5.0 0.5 229.00 571.00 GOOD > 9 5221.00 5221.00 _15.0 1,0 155.00 567.00 GOOD "r 10 8 9617.00 9303.66 5215.00 5216.00 5.0 0.5 151.00 573.00 GOOD 11 9 9607.00 9293.66 5210.00 5210.00 5.0 0.5 130.00 570.00 GOOD 12 13 I 298.00 570.00 GOOD , 14 11 9592.00 9278.66 5202.00 5202.00 5.0 0.5 117.00 229.00 TIGHT 15 12 9590.00 5201.00 5201.00 5.0 0.5 130.00 1231.00 GOOD Slow Gradient Change 16 13 9585.00 9271.66 5198.00 5198.00 5.0 0.5 129.00 565.00 GOOD Slow Gradient Change 17 14 9508.00 9164.66 5155.00 5155.00 5.0 0.5 126.00 4110.00 GOOD 18 " .11 . :. .ii .11` :i 1 .. i 1 .ii %i•` .11 61111 ,> 19 5152.00 5152.00 15.0 1.0 4014.00 4105.00 GOOD - 20 16 9495.00 9181.66 5148.00 5149.00 5.0 0.5 3774.00 4106.00 GOOD 1 21 5148.00 5149.00 15.0 1.0 3320.00 4105.00 GOOD 22 17 9472.00 9158.66 5136.00 5137.00 5.0 0.5 3232.00 3290.00 GOOD 23 5136.00 5137.00 15.0 1.0 2276.00 2762.00 GOOD 24 5136.00 5137.00 30.0 1.0 2198.00 2757.00 GOOD ill 25 5136.00 5137.00 5.0 0.5 3084.00 3145.00 GOOD Super 26 Possible 18 9465.00 9151.66 5132.00 5133.00 5.0 0.5 3098.00 3247.00 GOOD Charging? 27 5132.00 5133.00 15.0 1.0 2240.00 2760.00 GOOD 28 5132.00 5133.00 30.0 1.0 2275.00 2759.00 GOOD 29 5132.00 5133.00 5.0 0.5 3297.00 3093.00 GOOD 30 19 9435.00 , 9121.66 5114.00 5116.00 5.0 0.5 109.00 2828.00 GOOD 31 20 9508.00 5156.00 5157.00 5.0 0.5 3751.00 4106.00 GOOD 32 5156.00 5157.00 15.0 1.0 3539.00 4106.00 GOOD 33 5156.00 5157.00 30.0 1.0 3628.00 4106.00 GOOD 34 21 9502.00 9188.66 5154.00 5154.00 15.0 1.0 3104.00 4106.00 GOOD 35 5154.00 5154.00 30.0 1.0 3048.00 4106.00 GOOD 36 22 9495.00 9181.66 5150.00 5151.00 15.0 1.0 2875.00 4104.00 GOOD 37 5150.00 5151.00 30.0 1.0 3878.00 4100.00 GOOD 38 23 ; 947 2 5„ LE :138 u( - 0t u ; i 15.0 1., : 243 00 2762.00 GOOD 39 24 9465.00 9151.66 5134.00 1 5134.00 15.0 i 1.0 2226.00 i 2760.00 GOOD 40 25 9457.00 9143.66 5130.00 5130.00 15.0 1.0 2309.00 2760.00 GOOD 41 5130.00 5130.00 30.0 1.0 2320.00 2760.00 GOOD 42 26 9452.00 9138.66 5127.00 5127.00 15.0 1.0 2571.00 2760.00 GOOD 43 5127.00 5127.00 30.0,1 . 1.0 2535.00 2759.00 GOOD 44 27 9442.00 9128.66 5122.00 5122.00 15.0 1.0 1708.00 2756.00 GOOD 45 28 9435.00 9121.66 5118.00 5117.00 15.0 1.0 1253.00 2768.00 GOOD 46 47 ll..111 #:iadifi i;kriicidet I(ildiadill aateteia lli 48 k- 4980.00 4980.00 30.0 1.0 636.00 653.00 PLUGGED 49 30 9195.00 8881.66 4980.00 4981.00 15.0 1.0 8.00 9.00 TIGHT 50 4980.00 4981.00 30.0 1.0 9.00 28.00 TIGHT 51 4980.00 4981.00 5.0 0.5 26.00 36.00 TIGHT 52 4980.00. .4981.00 15.0 1.0 TIGHT 53 31 9194.00 4981.00 4981.00 15.0 1.0 11.00 14.00 TIGHT 54 32 9190.00 8876.66 4979.00 4978.00 15.0 1.0 12.00 30.00 TIGHT 55 33 9185.00 8871.66 4976.00 4976.00 15.0 1.0 14.00 17.00 TIGHT 56 57 4955.00 4955.00 30.0 1.0 73.00 586.00 GOOD 58 35 9142.00 8828.66 4952.00 4953.00 15.0 1.0 191.00 586.00 GOOD 59 • • 4952.00 4953.00 30.0 1.0 147.00 584.00 GOOD 60 36 9138.00 8824.66 4950.00 4950.00 15.0 1.0 98.00 592.00 GOOD 61 4950.00 4950.00 30.0 1.0 63.00 585.00 GOOD 62 37 9150.00 8836.66 4957.00 4957.00 15.0 1.0 356.00 578.00 GOOD 63 4957.00 4957.00 30.0 1.0 396.00 578.00 GOOD 64 38 9155.00 8841.66 4959.00 4960.00 15.0 1.0 916.00 946.00 PLUGGED 65 4959.00 4960.00 30.0 1.0 517.00 523.00 PLUGGED 66 39 9160.00 8846.66 4968.00 4963.00 15.0 1.0 944.00 956.00 PLUGGED 67 "?.;,. I. '.' ,©*. 0.1 1.0 5 5.'' _ .. " GED 68 40 9642.00 9328.66 5232.00 5232.00 15.0 1.0 15.00 579.00 GOOD 69 41 9637.00 9323.66 5230.00 5230.00 15.0 1.0 19.00 22.00 TIGHT 70 42 9636.00 5230.00 5229.00 15.0 1.0 19.00 21.00 TIGHT 71 43 9633.00 5227.00 5228.00 15.0 1.0 39.00 571.00 GOOD 72 44 9617.00 9303.66 5219.00 5219.00 15.0 1.0 36.00 571.00 GOOD 73 45 9607.00 9293.66 5214.00 5214.00 15.0 1.0 40.00 570.00 GOOD 74 46 9597.00 9283.66 5208.00 5209.00 15.0 1.0 52.00 569.00 GOOD 75 47 9150.00 8836.66 4960.00 4959.00 15.0 1.0 43.00 53.00 TIGHT OFF DEPTH ( 9154.75') 76 48 9149.00 4959.00 4995.00 15.0 1.0 44.00 47.00 TIGHT OFF DEPTH ( 9153.75') 77 49 9150.00 8836.66 4957.00 4957.00 15.0 1.0 89.00 587.00 GOOD 78 50 9146.00 8832.00 4955.00 4955.00 15.0 1.0 244.00 586.00 GOOD 79 51 9142.00 8828.66 4952.00 4952.00 15.0 1.0 53.00 586.00 GOOD 80 52 9138.00 8824.66 4950.00 4950.00 15.0 1.0 141.00 5825.00 GOOD 81 53 9050.00 8736.66 4884.00 4900.00 15.0 1.0 55.00 4901.00 LOST SEAL 82 54 9049.00 4900.00 4900.00 15.0 1.0 46.00 4840.00 GOOD FINAL SHUT - HYDRO. 83 55 9048.00 4899.00 4899.00 15.0 1.0 4899.00 4899.00 NO CONTACT 84 56 9045.00 4897.00 4897.00 15.0 1.0 4897.00 4897.00 NO CONTACT 85 57 9043.00 8729.66 4896.00 4897.00 15.0 1.0 4896.00 4896.00 NO CONTACT 86 58 9140.00 4950.00 4950.00 15.0 1.0 146.00 592.00 GOOD 87 88 89 60 9034.00 8720.66 4892.00 4892.00 15.0 1.0 4892.00 4892.00 NO CONTACT 90 61 9019.00 8705.66 4884.00 4883.00 15.0 1.0 880.00 919.00 TIGHT 91 62 9021.00 4884.00 4885.00 15.0 1.0 1116.00 4841.00 GOOD FINAL SHUT - HYDRO. 92 63 9023.00 4886.00 4886.00 15.0 1.0 1147.00 4464.00 GOOD 93 64 9011.00 8697.67 4879.00 4883.00 15.0 1.0 1273.00 4634.00 GOOD 94 65 9006.00 8692.67 4878.00 4878.00 15.0 1.0 1258.00 4632.00 GOOD 95 66 8997.00 8683.67 4872.00 4873.00 15.0 1.0 986.00 4853.00 GOOD FINAL SHUT - HYDRO. 96 67 9195.00 8881.66 4982.00 4982.00 15.0 1.0 902.00 930.00 TIGHT 97 68 9180.00 8866.66 4974.00 4975.00 15.0 1.0 857.00 896.00 TIGHT 98 69 9170.00 8856.66 4967.00 4968.00 15.0 1.0 883.00 902.00 TIGHT 99 70 9165.00 8851.66 4965.00 4965.00 15.0 1.0 850.00 908.00 TIGHT 100 71 9160.00 8846.66 4963.00 4963.00 15.0 1.0 862.00 902.00 TIGHT 101 t. 3 , _ ..,. F .;.. -, ar � _ .: i m i 102 _ _. .2,: - .k. �. F 1 .L.«... � .+.rte I a 4959.00 4960.00 3 0.0 1.0 486.00 492.00 PLUGGED 103 73 9150.00 883.... 4956.00 4956.00 15.0 1.0 886.00 900.00 PLUGGED F 104 Actual Wellpath Geographic Report Report Generated 08- Aug -08 at 11:02:17 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 0.999958 Field Kenai Gas Field (NAD83) Horizontal Reference Point Slot Facility Pad 41 -7 Vertical Reference Point Glacier #1 (RKB) Slot slot #KOU 9 MD Reference Point Glacier #1 (RKB) Well KDU 9 Field Vertical Reference Mean Sea Level Wellbore KDU 9 Glacier #1 (RKB) to Facility Vertical Datum 87.00 ft Wellpath NaviTrak MWD <184 - 98505 Glacier #1 (RKB) to Mean Sea Level 87.00 ft Wellbore Last Revised 08/06/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft I User Jonethoh I Section Origin Y N 0.00 ft Calculation method Minimum curvature I Section Azimuth 238.46 Local North Local East Grid East Grid North Latitude Longitude [Y] [ft] [USft] [USft] Slot Location - 162.84 - 1056.11 1414878.40 2361612.23 60 ° 27'30.584 "N 151 °14'58.119 "W F iIt Referee Pt ';,,� 1415937.35 2361755.09 60 °27'32.188 "N 151 °14'37.059 "W r • : -f - r - n • Pt , _ 1410937.15 2361824.52 60 °27'31.931'N 151 ° 1616.783 "W ° NAD 83 coordinates are converted to NAD 27 usin_ Cor.scon 6.0.1 ∎uo am . i,..rps ,,t Li, in ,c..., s. - i TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft.] ['1 [ [ft] [ft] [ftl [ft] [ft] [ft] [ft] [ft] [ ° / [°) [°1100ft] [°1100ft1 [ft] 0.00 0.00 325.46 0.00 -87.00 0.00 0.00 1414878.40 2361612.23 274858.258 2361850.774 60 °27'30.584'N 151 9458.119' 0.00 -34.54 0.00 0.00 0.00 184.00 0.44 325.46 184.00 97.00 0.58 -0.40 1414878.01 2361612.82 274857.868 2361851.364 60 °27'30.590 "N 151 9458.12TW 0.24 -23.52 0.24 0.00 0.04 244.00 0.73 315.86 244.00 157.00 1.05 -0.80 1414877.62 2361613.29 274857.478 2361851.834 60 ° 27'30.594"N 1511458.135V 0.51 - 156.93 0.48 -16.00 0.13 304.00 0.70 314.81 303.99 216.99 1.58 -1.32 1414877.11 2361613.83 274856.968 2361852.374 60 °27'30.599"N 151 °14'58.146' 0.05 -78.39 -0.05 -1.75 0.30 364.00 0.97 281.40 363.98 276.98 1.94 -2.08 1414876.36 2361614.21 274856.218 2361852.754 60 °27'30.603 "N 151 9458.161'W 0.91 49.81 0.45 -55.68 0.76 _ 424.00 1.18 292.31 423.97 336.97 2.27 -3.15 1414875.29 2361614.56 274855.148 2361853.104 60 °2730.606'N 151°1458.182W 0.49 -62.68 0.35 18.18 1.50 _ 485.00 2.49 254.52 484.94 397.94 2.16 -5.01 1414873.43 2361614.48 274853.288 2361853.024 60 °27'30.605'N 151 9458.219' 2.81 -30.26 2.15 -61.95 3.14 545.00 4.92 239.02 544.81 457.81 0.48 -8.47 1414869.94 2361612.88 274849.798 2361851.424 60 °2730.589"N 151 9458.288'W 4.34 -24.08 4.05 -25.83 6.97 604.00 7.46 230.53 603.47 516.47 -3.25 -13.60 1414864.74 2361609.24 274844.598 2361847.785 60 °2730.552"N 151 9458.391"W 4.56 -0.36 4.31 -14.39 13.29 663.00 9.28 230.46 661.84 574.84 -8.72 -20.22 1414858.01 2361603.90 274837.867 2361842.445 60 °2730.498"N 1511458.523'W 3.08 17.83 3.08 -0.12 21.80 724.00 10.48 232.57 721.93 634.93 -15.22 -28.42 1414849.69 2361597.55 274829.547 2361836.095 60 °27'30.434 "N 1511458.686V 2.05 6.01 1.97 3.46 32.19 783.00 12.07 233.37 779.79 692.79 -22.16 -37.63 1414840.35 2361590.79 274820.207 2361829.336 60 °27'30.366 "N 1511458.870V 2.71 6.40 2.69 1.36 43.67 847.00 14.27 234.37 842.10 755.10 -30.75 -49.42 1414828.41 2361582.42 274808.266 2361820.966 60 °27'30.281'N 151 9459.105V 3.46 13.36 3.44 1.56 58.20 909.00 16.07 235.91 901.94 814.94 -40.01 -62.74 1414814.92 2361573.42 274794.776 2361811.967 60 °27'30.190"N 151 9459.370'W 2.97 33.24 2.90 2.48 74.40 972.00 17.41 238.80 962.27 875.27 -49.78 -78.02 1414799.45 2361563.94 274779.306 2361802.488 60 °27'30.094 "N 1511459.675"W 2.50 44.41 2.13 4.59 92.54 1035.00 18.08 240.88 1022.27 935.27 -59.42 -94.62 1414782.67 2361554.62 274762.525 2361793.168 60 °2729.999"N 151 9500.006' 1.46 35.46 1.06 3.30 111.73 1099.00 19.01 242.89 1082.95 995.95 -69.01 - 112.58 1414764.54 2361545.38 274744.395 2361783.929 60 °2729.904"N 151 9550.364' 1.76 -45.26 1.45 3.14 132.04 1162.00 19.26 242.13 1142.47 1055.47 -78.54 - 130.90 1414746.04 2361536.19 274725.894 2361774.74 60 °2729.810'N 1511550.730V 0.56 -71.71 0.40 -1.21 152.64 1225.00 19.69 238.58 1201.87 1114.87 -88.93 - 149.14 1414727.61 2361526.15 274707.464 2361764.701 60 °2729.708"N 151 9551.093'W 2.00 4.22 0.68 -5.63 173.63 _ 1287.00 20.95 238.84 1260.01 1173.01 - 100.11 - 167.54 1414709.00 2361515.32 274688.853 2361753.871 60 °27'29.598"N 151 9551.460"W 2.04 -30.36 2.03 0.42 195.16 1351.00 22.61 236.34 1319.44 1232.44 - 112.85 - 187.57 1414688.73 2361502.96 274668.583 2361741.512 60 ° 2729.473"N 151 9551.860'W 2.97 5.46 2.59 -3.91 218.89 1414.00 23.88 236.64 1377.32 1290.32 - 126.58 - 208.30 1414667.74 2361489.63 274647.592 2361728.183 60 ° 27'29.337"N 1511502.273'W 2.02 -7.75 2.02 0.48 243.74 1476.00 26.15 235.94 1433.50 1346.50 - 141.13 - 230.11 1414645.67 2361475.50 274625.522 2361714.054 60 °2729.194"N 1511502.708'W 3.69 17.83 3.66 -1.13 269.94 1540.00 27.87 237.12 1490.52 1403.52 - 157.15 - 254.35 1414621.12 2361459.94 274600.971 2361698.495 60 °2729.036'N 1511503.192'W 2.81 4.69 2.69 1.84 298.98 1603.00 30.07 237.48 1545.63 1458.63 - 173.63 - 280.03 1414595.14 2361443.95 274574.99 2361682.507 60 ° 2728.874"N 1511503.704'W 3.50 -14.75 3.49 0.57 329.49 1625.00 30.75 237.13 1564.61 1477.61 - 179.65 - 289.40 1414585.65 2361438.11 274565.5 2361676.667 60 ° 2728.815 - N 151 °15'03.890'W 3.19 69.76 3.09 - 1.59 340.62 1712.00 30.90 237.91 1639.32 1552.32 - 203.59 - 327.01 1414547.60 2361414.89 274527.449 2361653.449 60 °2728.579'N 1511504.640'W 0.49 - 176.09 0.17 0.90 385.20 1775.00 29.60 237.73 1693.74 1606.74 - 220.49 - 353.87 1414520.42 2361398.50 274500.268 2361637.06 60 °2728.412"N 151 °1505.176'W 2.07 130.80 -2.06 -0.29 416.93 1838.00 29.36 238.30 1748.58 1661.58 - 236.91 - 380.17 1414493.82 2361382.58 274473.667 2361621.141 60 °2728.251"N 15115'05.700'W 0.59 2.18 -0.38 0.90 447.93 1901.00 30.56 238.39 1803.16 1716.16 - 253.42 - 406.95 1414466.73 2361366.59 274446.577 2361605.152 60 °2728.088"N 1511506.234'W 1.91 -74.57 1.90 0.14 479.40 • 1964.00 30.64 237.83 1857.39 1770.39 - 270.36 - 434.18 1414439.19 2361350.16 274419.036 2361588.723 60 °27'27.921'N 151 9556.7773W 0.47 122.87 0.13 -0.89 511.46 2027.00 30.10 239.53 1911.74 1824.74 - 286.92 - 461.38 1414411.68 2361334.12 274391.525 2361572.685 60 °27'27.758 "N 1511507.320'W 1.61 102.47 -0.86 2.70 543.31 - - -- -_ - _ 2090.00 29.98 240.66 1966.28 1879.28 - 302.65 - 488.72 1414384.05 2361318.92 274363.895 2361557.486 60 °2727.603 "N 151 9507.865"W 0.92 16.71 -0.19 1.79 574.84 2152.00 30.66 241.06 2019.80 1932.80 - 317.89 - 516.06 1414356.43 2361304.21 274336.273 2361542.778 60 °2727.453 "N 1511508.410"W 1.14 9.46 1.10 0.65 606.11 2215.00 32.50 241.63 2073.47 1986.47 - 333.70 - 545.01 1414327.18 2361288.94 274307.021 2361527.511 6(72727.297N 151 1508.987"W 2.96 -9.06 2.92 0.90 639.06 2278.00 35.06 240.92 2125.83 2038.83 - 350.54 - 575.72 1414296.16 2361272.69 274276 2361511.265 60 °2727.132'N 151 9509.600"/ 4.11 -54.78 4.06 -1.13 674.04 2340.00 35.55 239.74 2176.43 2089.43 - 368.28 - 606.85 1414264.70 2361255.55 274244.538 2361494.128 60 °2726.957"N 1511510.220"W 1.35 166.07 0.79 -1.90 709.85 2403.00 34.95 240.00 2227.88 2140.88 - 386.53 - 638.30 1414232.91 2361237.89 274212.746 2361476.471 60 °2726.777'N 1511510.847W 0.98 - 169.22 -0.95 0.41 746.20 2467.00 34.27 239.77 2280.55 2193.55 - 404.77 - 669.75 1414201.13 2361220.26 274180.964 2361458.845 60 °2726.598"N 1511511.474'W 1.08 173.40 -1.06 -0.36 782.54 2529.00 33.98 239.83 2331.88 2244.88 - 422.27 - 699.81 1414170.74 2361203.33 274150.572 2361441.918 60 °2726.425"N 1511512.074"W 0.47 173.45 -0.47 0.10 817.31 2592.00 33.69 239.89 2384.21 2297.21 - 439.88 - 730.14 1414140.08 2361186.30 274119.91 2361424.891 60 °2726.252'N 1511512.679'W 0.46 164.98 -0.46 0.10 852.38 2656.00 33.12 240.17 2437.63 2350.63 - 457.48 - 760.67 1414109.23 2361169.28 274089.058 2361407.874 60 °27'26.078 "N 1511513.287'W 0.92 176.69 -0.89 0.44 887.60 2718.00 32.38 240.25 2489.78 2402.78 - 474.15 - 789.77 1414079.81 2361153.17 274059.637 2361391.768 60 ° 2725.914'N 1511513.868' 1.20 - 132.44 -1.19 0.13 921.13 2781.00 32.09 239.65 2543.07 2456.07 - 490.97 - 818.86 1414050.41 2361136.90 274030.235 2361375.501 60 °2725.748"N 1511514.448'W 0.69 - 176.38 -0.46 -0.95 954.72 2844.00 31.03 239.52 2596.75 2509.75 - 507.66 - 847.30 1414021.66 2361120.75 274001.483 2361359.354 60 ° 2725.584'N 151 °1515.015'W 1.69 175.58 -1.68 -0.21 987.69 2907.00 29.38 239.78 2651.19 2564.19 - 523.68 - 874.65 1413994.02 2361105.26 273973.842 2361343.867 60 ° 2725.426'N 1511515.560' 2.63 - 163.70 -2.62 0.41 1019.37 2970.00 27.85 238.82 2706.50 2619.50 - 539.08 - 900.59 1413967.78 2361090.36 273947.6 2361328.97 60 ° 2725.275'N 151 95'16.077'W 2.54 - 165.81 -2.43 -1.52 1049.54 3034.00 26.36 237.97 2763.47 2676.47 - 554.35 - 925.43 1413942.66 2361075.56 273922.478 2361314.172 60 °2725.124'N 1511516.573'W 2.41 - 172.68 -2.33 -1.33 1078.70 3096.00 24.64 237.44 2819.42 2732.42 - 568.61 - 947.99 1413919.83 2361061.73 273899.647 2361300.345 60 °2724.984'N 1511517.023'W 2.80 170.24 -2.77 -0.85 1105.39 3160.00 23.22 238.06 2877.92 2790.92 - 582.47 - 969.94 1413897.62 2361048.30 273877.436 2361286.917 60 °27'24.847 "N 1511517.460"W 2.25 163.78 -2.22 0.97 1131.34 3223.00 21.89 239.10 2936.10 2849.10 - 595.07 - - 990.56 1413876.77 2361036.09 273856.584 2361274.709 60 °2724.723 "N 1511517.871"W 2.20 176.01 -2.11 1.65 1155.51 3285.00 20.30 239.42 2993.94 2906.94 - 606.48 - 1009.74 1413857.38 2361025.05 273837.193 2361263.671 60 °2724.611 "N 151 1518.254"V 2.57 - 164.05 -2.56 0.52 1177.82 3346.00 18.67 237.96 3051.45 2964.45 - 617.04 - 1027.13 1413839.80 2361014.81 273819.612 2361253.433 60 °2724.507"N 1511518.600"W 2.79 161.68 -2.67 -2.39 1198.16 3409.00 17.17 239.65 3111.39 3024.39 - 627.09 - 1043.70 1413823.04 2361005.08 273802.851 2361243.705 60 ° 2724.408"N 151 1518.931"W 2.52 161.52 -2.38 2.68 1217.54 3472.00 16.22 240.79 3171.74 3084.74 - 636.08 - 1059.40 1413807.17 2360996.39 273786.98 2361235.017 60 ° 2724.319 "N 1511519.244"W 1.59 - 173.64 -1.51 1.81 1235.63 3535.00 15.12 240.32 3232.39 3145.39 - 644.44 - 1074.22 1413792.19 2360988.31 273771.999 2361226.938 60 °2724.237"N 151 1519.539'W 1.76 - 173.48 -1.75 -0.75 1252.64 3599.00 13.98 239.78 3294.34 3207.34 - 652.47 - 1088.15 1413778.11 2360980.55 273757.919 2361219.18 60 °27'24.158 "N 1511519.817W 1.79 141.30 - 1.78 - 0.84 1268.71 Page 1 of 2 TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Looted° Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [ [1 [NI [ftl [ft] [ft] [ft] [ft] [ft] [ft] [°/100ft] [°] I /100ft] [°/1 Soft] [ft] 3662.00 13.51 241.41 3355.54 3268.54 - 659.82 - 1101.19 1413764.94 2360973.45 273744.748 2361212.081 60 °2724.08514 151 °1520.07TW 0.97 159.06 -0.75 2.59 1283.67 3725.00 12.65 242.92 3416.90 3329.90 - 666.48 - 1113.80 1413752.21 2360967.03 273732.017 2361205.663 60 °27'24.020"N 151"15'20.329"W 1.47 168.86 -1.37 2.40 1297.89 _- 3789.00 11.10 244.51 3479.53 3392.53 - 672.32 - 1125.60 1413740.30 2360961.41 273720.106 2361200.044 60 °27'23.962"N 151 °15'20.564"W 2.48 - 178.65 -2.42 2.48 1311.01 - -_ 3852.00 10.13 244.38 3541.45 3454.45 - 677.33 - 1136.07 1413729.74 2360956.61 273709.546 2361195.245 60 °27'23.913"N 151 °15'20.773°W 1.54 - 152.25 -1.54 -0.21 1322.55 3915.00 8.99 240.47 3603.58 3516.58 - 682.15 - 1145.35 1413720.37 2360951.96 273700.175 2361190.596 60 °27'23.865"N 151 °15'20.958"W 2.08 - 168.99 -1.81 -6.21 1332.98 3978.00 7.45 238.15 3665.93 3578.93 - 686.73 - 1153.10 1413712.53 2360947.53 273692.335 2361186.167 60 °2723.820"N 151°1521.112W 2.50 - 175.32 -2.44 -3.68 1341.98 4042.00 5.62 236.62 3729.51 3642.51 - 690.65 - 1159.24 1413706.32 2360943.73 273686.124 2361182.368 60 °2723.782 "N 151 °15'21.235W 2.87 178.24 -2.86 -2.39 1349.27 - _....,_ 4105.00 3.57 237.63 3792.30 3705.30 - 693.39 - 1163.47 1413702.03 2360941.06 273681.834 2361179.698 60 °2723.755"N 151 9521.319W 3.26 174.53 -3.25 1.60 1354.31 __ 4169.00 2.07 241.62 3856.22 3769.22 - 695.01 - 1166.17 1413699.30 2360939.50 273679.104 2361178.138 60 °2723.739"N 151 9521.373"W 2.36 160.58 -2.34 6.23 1357.46 4232.00 1.82 244.42 3919.19 3832.19 - 695.98 - 1168.08 1413697.38 2360938.56 273677.184 2361177.198 60 °2723.729"N 1511521.411" 0.42 . -46.49 -0.40 4.44 1359.59 _ 4295.00 1.92 241.36 3982.15 3895.15 - 696.92 - 1169.91 1413695.53 2360937.66 273675.334 2361176.299 60 °27'23.720"N 151 9521.447W 0.22 - 146.10 0.16 -4.86 1361.64 4359.00 1.85 239.89 4046.12 3959.12 - 697.95 - 1171.74 1413693.68 2360936.66 273673.484 2361175.299 60 °2723.710'N 15115'21.484' W 0.13 42.78 -0.11 -2.30 1363.74 _ _. 4422.00 2.00 243.75 4109.08 4022.08 - 698.95 - 1173.61 1413691.80 2360935.70 273671.603 2361174.339 60 °2723.700'N 15115'21.521"W 0.31 -93.12 0.24 6.13 1365.85 4485.00 2.00 237.50 4172.04 4085.04 - 700.03 - 1175.52 1413689.86 2360934.66 273669.663 2361173.299 60 °2723.689"N 151 °15'21.559"W 0.35 118.62 0.00 -9.92 1368.05 4548.00 1.85 247.74 4235.01 4148.01 - 701.00 - 1177.39 1413687.98 2360933.72 273667.783 2361172.359 60 °27'23.680"N 151 °1521.596"W 0.59 99.29 -0.24 16.25 1370.15 4611.00 1.84 249.89 4297.98 4210.98 - 701.74 - 1179.28 1413686.07 2360933.02 273665.873 2361171.66 60 °2723.673 "N 151 °1521.634"W 0.11 - 153.03 -0.02 3.41 1372.14 4675.00 1.66 246.68 4361.95 4274.95 - 702.46 - 1181.09 1413684.24 2360932.34 273664.043 2361170.98 60 °2723.66514 151 °1521.670'W 0.32 176.00 -0.28 -5.02 1374.07 4800.00 1.45 247.26 4486.90 4399.90 - 703.78 - 1184.22 1413681.10 2360931.07 273660.903 2361169.71 60 °2723.652N 151 °1521.733'W 0.17 - 109.54 -0.17 0.46 1377.42 4927.00 1.43 244.86 4613.86 4526.86 - 705.08 - 1187.13 1413678.16 2360929.83 273657.963 2361168.47 60 °2723.640 "N 151 °1521.791"W 0.05 164.17 -0.02 -1.89 1380.59 5052.00 1.23 247.52 4738.83 4651.83 - 706.25 - 1189.78 1413675.48 2360928.71 273655.282 2361167.351 60 °2723.628 "N 151 °1521.844"W 0.17 132.74 -0.16 2.13 1383.46 _... 5178.00 1.15 252.03 4864.80 4777.80 - 707.16 - 1192.24 1413673.02 2360927.85 273652.822 2361166.491 60 °2723.619"N 1511521.893"W 0.10 - 160.31 -0.06 3.58 1386.02 5304.00 0.79 242.35 4990.78 4903.78 - 707.95 - 1194.21 1413671.03 2360927.09 273650.832 2361165.731 60 °27'23.611"N 1511521.932"W 0.31 , - 143.00 -0.29 -7.68 1388.12 5431.00 0.60 226.94 5117.77 5030.77 - 708.81 - 1195.47 1413669.75 2360926.25 273649.552 2361164.891 60 °2723.603"N 151°15'21.957W 0.21 - 139.66 -0.15 -12.13 1389.65 5556.00 0.51 217.68 5242.77 5155.77 - 709.70 - 1196.29 1413668.92 2360925.38 273648.722 2361164.021 60 °2723.594 "N 15115'21.973"W 0.10 90.90 -0.07 -7.41 1390.81 5611.00 0.59 248.78 5297.76 5210.76 - 710.00 - 1196.70 1413668.50 2360925.09 273648.302 2361163.732 60 °27-23.591 "N 1511521.982"W 0.55 - 144.35 0.15 56.55 1391.31 • 5726.00 0.35 183.66 5412.76 5325.76 - 710.56 - 1197.28 1413667.91 2360924.54 273647.712 2361163.182 60 °2723.586 "N 15115'21.993"W 0.47 -87.71 -0.21 -56.63 1392.10 5914.00 0.43 150.37 5600.76 5513.76 - 711.75 - 1196.96 1413668.20 2360923.35 273648.002 2361161.992 60 °2723.574 "N 151 °15'21.987 W 0.13 132.74 0.04 -17.71 1392.45 _ 6104.00 0.32 202.41 5790.75 5703.75 - 712.86 - 1196.81 1413668.33 2360922.24 273648.132 2361160.882 60 °2723.563 "N 15115'21.984"W 0.18 134.42 -0.06 27.39 1392.91 6293.00 0.27 214.66 5979.75 5892.75 - 713.71 - 1197.27 1413667.86 2360921.39 273647.662 2361160.032 60 °2723.555 "N 1511521.993' 0.04 139.62 -0.03 6.48 1393.74 6481.00 0.18 277.93 6167.75 6080.75 - 714.04 - 1197.81 1413667.31 2360921.08 273647.112 2361159.722 60 °2723.551 "N 1511522.004' 0.13 175.68 -0.05 33.65 1394.37 6670.00 0.10 85.83 6356.75 6269.75 - 713.98 - 1197.94 1413667.18 2360921.13 273646.982 2361159.772 60 °27 "N 151 °1522.006' 0.15 84.19 -0.04 88.84 1394.46 6795.00 0.12 114.02 6481.75 6394.75 - 714.03 - 1197.71 1413667.41 2360921.08 273647.212 2361159.722 60 °2723.551'N 15115'22.002 W 0.05 -98.18 0.02 22.55 1394.29 6984.00 0.28 40.94 6670.75 6583.75 - 713.76 - 1197.23 1413667.90 2360921.34 273647.702 2361159.982 60 °2723.55414 151 9521.992"W 0.14 144.17 0.08 -38.67 1393.73 7174.00 0.22 136.94 6860.75 6773.75 - 713.68 - 1196.68 1413668.45 2360921.42 273648.252 2361160.062 60 °2723.555 "N 15115'21.981"W 0.20 -49.28 -0.03 50.53 1393.22 7363.00 0.35 116.11 7049.74 6962.74 - 714.20 - 1195.91 1413669.21 2360920.88 273649.012 2361159.522 60 °2723.55014 151 °15'21.966"W 0.09 -40.81 . 0.07 -11.02 1392.84 7554.00 0.42 108.30 7240.74 7153.74 - 714.67 -1194.72 1413670.39 2360920.38 273650.192 2361159.021 60 °2723.545"N 151 °1521.942"W 0.05 34.77 0.04 -4.09 1392.07 _ 7744.00 0.80 125.65 7430.73 7343.73 - 715.66 - 1192.98 1413672.11 2360919.36 273651.912 2361158.001 60 °2723.535 "N 151 9521.90TW 0.22 8.76 0.20 9.13 1391.11 7934.00 0.84 126.07 7620.71 7533.71 - 717.26 - 1190.78 1413674.28 2360917.72 273654.082 2361156.361 60 °2723.520 "N 1511521.863" 0.02 - 175.88 0.02 0.22 1390.07 8123.00 0.46 122.65 7809.70 7722.70 - 718.48 - 1189.02 1413676.01 2360916.47 273655.812 2361155.111 60 °2723.508 "N 1511521.828"W 0.20 108.45 -0.20 -1.81 1389.21 8312.00 0.54 177.20 7998.69 7911.69 - 719.78 - 1188.34 1413676.67 2360915.15 273656.472 2361153.791 60 °2723.495 "N - 15115'21.015V 0.25 - 179.61 0.04 28.86 1389.30 8501.00 0.49 177.16 8187.68 8100.68 - 721.48 - 1188.26 1413676.72 2360913.46 273656.522 2361152.101 60 °2723.478 "N 151 °15'21.813"W 0.03 141.91 -0.03 -0.02 1390.12 8689.00 0.31 216.27 8375.68 8288.68 - 722.69 - 1188.52 1413676.44 2360912.25 273656.242 2361150.891 60 °27'23.466"N 151 °15'21.818'W 0.17 - 149.09 -0.10 20.80 1390.98 8879.00 0.22 113.56 8565.68 8478.68 - 723.25 - 1188.49 1413676.46 2360911.69 273656.262 2361150.331 60 °2723.461 "N 1511521.818" 0.22 8.34 -0.05 -54.06 1391.25 9005.00 0.69 119.25 8691.67 8604.67 - 723.72 - 1187.60 1413677.33 2360911.20 273657.132 2361149.841 60 °2723.456 "N 1511521.800" 0.37 177.55 0.37 4.52 1390.74 9193.00 0.37 121.37 8879.66 8792.66 - 724.59 - 1186.10 1413678.82 2360910.31 273658.622 2361148.951 60 °27'23.448'N 1511521.770" 0.17 97.55 -0.17 1.13 1389.91 9383.00 0.41 155.46 9069.66 8982.66 - 725.53 - 1185.29 1413679.61 2360909.35 273659.412 2361147.991 60 °27'23.438 "N 1511521.754" 0.12 166.82 0.02 17.94 1389.71 9572.00 0.10 211.47 9258.66 9171.66 - 726.28 - 1185.10 1413679.79 2360908.59 273659.593 2361147.231 60 °2723.431 "N 1511521.750" 0.19 - 112.68 -0.16 29.63 1389.94 _. 9761.00 0.31 116.11 9447.66 9360.66 - 726.65 - 1184.72 1413680.16 2360908.22 273659.963 2361146.861 60 °2723.427"N 1511521.743V 0.18 0.00 0.11 -50.46 1389.81 9850.00 0.31 116.11 9536.66 9449.66 - 726.86 - 1184.29 1413680.59 2360906.00 273660,393 2361146.641 60 ° 27-23.425 "N 1511521.734V 0.00 0.00 0.00 0.00 1389.56 Projected Data - NO SURVEY • Page 2 of 2 • • KDU #9 Kenai Gas Field Attachment List End of Well Report Well Schematic Directional Survey Multi Formation Test Operations Summary Logs • Array Induction TVD • Array Induction RTAP Processed MD • Formation Tester MD • Compensated Photo Density Dual Spaced Neutron MD • Compensated Sonic MD • Density Neutron Sonic Water Saturation MD • Compact Triple Combo QuickLook MD • Dual Radial Cement Bond, Gamma Ray, CCL Compact Disc • Directional Survey • Wireline Log Data • Mud Log Data 1 SARAH PALIN, GOVERNOR �T ALASKA OIL A D S 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Craig Rang Sr. Completions Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611 -1949 Re: Kenai Gas Field, Deep Tyonek Oil Pool, Kenai Deep Unit #9 Sundry Number: 308 -367 Dear Mr. Rang: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, y Daniel T. Seamount, Jr. Chair U � DATED this day of October, 2008 Encl. T • • • Marathon Oil Company Marathon Alaska Asset Team P.O. Box 1949 MARATHON Oil Company Telephone 907 /283 -1371 Fax 907/283 -1350 October 14, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 OC r 5 20 08 Alaska Oil & G Reference: 10 -403 Application for Sundry Approvals An,c,ncrag C° fi l ssl pn Field: Kenai Gas Field Well: Kenai Deep Unit #9 Dear Mr. Maunder: Marathon requests permission to proceed with the post rig completion of KDU -9 well. Activities will include cleaning out the wellbore, if needed, and perforating the Deep Tyonek sands. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, •ZUTAA- 0 I f Kevin J. Skiba Engineering Technician Enclosures: 10 -403 Application for Sundry Approvals cc: AOGCC Work Scope Procedure Houston Well File Well Schematic Kenai Well File KJS CLR �. CP ? I t LhIV` S TATE OF ALASKA � i 1 5 2008 ALA OIL AND GAS CONSERVATION COM ION )�fy 1 t e or* a APPLICATION FOR SUNDRY APPROVALS rd Alaska Oil & Gas Cons. Coriniissiol 20 AAC 25.280 1. Type of Request: Abandon ❑ Suspend ❑ Operational shutdown❑ Perforate 0 - Waiver ❑APiChOragitther ❑ Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate ❑ Time Extension ❑ Change approved program ❑ Pull Tubing ❑ Perforate New Pool ❑ Re -enter Suspended Well ❑ 2. Operator Name: an Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: p y Development 0 , Exploratory ❑ 208 - 1060 ' 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50 - 133 - 20578 - 00 - 00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: 3564 ft Spacing Exception Required? Yes ❑ No 0 Kenai Deep Unit #9 9. Property Designation: d 10. KB Elevation (ft): 11. Field / Pool(s): .Q A - 028142 66' (21' AGL) Kenai Gas Field / Deep Tyonek formation 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 9,850' 9,513' 9,800' 9,465' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 118' 20" 139' 139' 3,060 psi 1,500 psi Surface 1,654' 13 -3/8" 1,675' 1,603' 3,450 psi 1,950 psi 1 Intermediate 5,647' 9 -5/8" 5,668' 5,334' 5,750 psi 3,090 psi Liner 3,476' 7" 8,955' 8,621' 7,240 psi 5,410 psi Liner 1,154' 4 -1/2" 9,845' 9,508' 8,430 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NA NA NA NA NA Packers and SSSV Type: 7" ZXP Liner Top Packer Packers and SSSV MD (ft): 5,479' 4 - 1/2" ZXP Liner Top Packer 8,691' 13. Attachments: Description Summary of Proposal 0 14. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Development 0 , Service ❑ 15. Estimated Date for 16. Well Status after proposed work: October 27, 2008 Commencing Operations: Oil ❑ Gas 0 c Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Craig L. Rang Title Sr. Completions Engineer Signature c Phone Date (907) 283 - 1372 October 14, 2008 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: `Q - 7 El J Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance Other: Subsequent Form Required: 4O Ti _ v `0 i..ca \ ,(,O � Z„Q `1/4.3,,,,,_ o t\ \V - "1a. APPROVED BY Approved by: , COMMISSIONER THE COMMISSION Date: /0 / 2 g) A OM 8F Q Form 10 -403 Revised 06 /2006 , , . u' r � 2 = ad Submit in Duplicate • 1 • MARATHON OIL COMPANY M ALASKA REGION MARATHON KDU 9 Post -Rig Completion Procedure 1. MIRU Expro slickline. Test lubricator BOPE to 4,500 psi. RIH w/ 3.833" gauge ring and junk basket to PBTD @ 9,800' MD. POOH. NOTE: If gauge ring doesn't make it to bottom, prepare to RIH w/ mill and motor on CT to clean out. 2. MIRU BJ Coil Tubing, nitrogen units. RU to 4- 1/16" 5M Otis lubricator adaptor. M/U coil connector and pull test to 10,000 Ib. Pressure test connector to 250/4500 psi for 10 and 10 minutes respectively. Install 2" OD bull -nose jetting nozzle on end of coil tubing. Test all BOPE and CT with methanol water to 250/4500 psi for 10 and 10 minutes respectively. 3. Contingency: If slickline gauge ring run did not make it to bottom, clean out/wash from PBTD @ 9,800' MD to 1,200' MD using 6% KCL water with mill and motor. 4. RIH to PBTD @ 9,800' MD and unload 6% KCL water from wellbore using BJ CoilTech reverse jetting procedure. Pump nitrogen down CT- casing annulus, up CT, and into flow back tank. POOH with coil tubing, trap 2200 PSI on tubing to perforate Deep Tyonek D3b interval @ 1200 psi (30 %) underbalance. NOTE: Estimated SBHP is 4,200 psi. RDMO BJ Services coil tubing and nitrogen units. 5. MIRU MOC flowback iron including choke, gas buster, and an open top tank. 6. MIRU E -line, pressure test lubricator and BOPE to 4,500 psi. Maintain 2,200 psi on tubing while RIH w/ GR -CCL and perforate 18' of Deep Tyonek D3b interval (9,490 -9,508 ft MD, picked from Weatherford Open Hole Quad Combo) using Expro 3 -3/8" HSD, 6 SPF, 60 degree phased charges. Monitor tubing for signs guns have fired. POOH. RDMO electric line. 7. Flow well to tank, recording pressures and water volumes per production engineer. Flow the D3b until anticipated rate has been obtained; several days of production performance may be needed for thorough reservoir assessment. Collective agreement with Kenai, Anchorage, and Houston teams will determine if contingency perforations will be added in the D3a interval (9,430 -9,475 ft MD, picked from Weatherford Open Hole Quad Combo). 8. RDMO MOC flow back iron and associated items. 9. Turn well over to production. • • KDU -9 Permit #: 208 -1060 P: 50- 1878 -00 -00 Pad 41 -7 Prop. Des: A- 02 02811 42 2 158' FNL, 1,05T FEL, KB elevation: 87' (21' AGL) WBS #: Sec. 7, T4N, R11 W, S.M. MARATHON Latitude: 60° 27' 32.71" N Longitude: 151° 14' 50.27" W X: 274,850.67 ., Y: 2,361,856.78 Conductor Spud: 7/14/2008 20" K -55 133 ppf PE TD: 8/5/2008 Top Bottom Rig Released: 8/14/2008 12:0ohrs MD 0' 139' PA #: TVD 0' 139' Surface Casing 13 -3/8" J -55 68 ppf BTC Top Bottom KOP Cod 500' MD /TVD MD 0' 1,675' ' tip 0' ,603' Well built 3 per 100 (500 to 1 2TVD . hole Cmt w/ 416 sks (184 bbl) of 1600') to - ° and dropped 12 ppg, Type 1 cmt, w (37 bbls) to surface -2 per 100 (2,400' to 4,000') to vertical & continued to 3.. Intermediate Casing 9 -5/8" L -80 40 ppf BTC TD @ 9,850' MD. To Bottom P MD 0' 5,668' 1 TVD 0' 5,334' 12 -1/4" hole Cmt w/ 346 sks (208 bbls) Tubing String -4.5 ", 12.6 #, L -80, Hydril 563 of 10.5 ppg, class G cmt, 100% returns Casing String -4.5 ", 12.75 #, L -80, Hydril 521 ZXP Liner Packer with 15' Tieback Extension @ 8,691' MD (Top) Liner #1 Flex -Lock Liner Hanger - 8800' MD (Top) 7" L -80 26 ppf Butt -Mod Landing Collar - 9689" MD (Top) Top Bottom Float Collar @ 9,800' MD (Top) MD 5,479" 8,955' Float Shoe @ 9,845' MD (Bottom) TVD 5,145' 8,621' 8 -1/2" hole Cmt w/ 178 sks (78 bbis) of 12.5 ppg • class G cmt Lead & 177sks (36 bbls) of 15.8 ppg class G Tail Liner #2 4 -1/2" L -80 12.6 ppf Hydril 563 Top Bottom MD 8,691' 9,845' TVD 8,357' 9,508' 6 -1/8" hole Cmt w/ 89 sks (29 bbls) of 13.5 ppg, class G cmt, (1.5 bbls) cmt to surface, Floats held Formation Tops: Formation Depth (MD( Depth (TVD) Sterling Beluga _ _ Tyonek TD TD PBTD 9,850' MD 9,800' MD 9,513' TVD 9,465' TVD Well Name & Number: Kenai Deep Unit #9 Lease Kenai Gas Field, A- 028142 County or Parish: Kenai Peninsula Borough State: Alaska Country: I USA Perforations: (MD) (TVD): Angle @KOP and Depth: Angle /Perfs. KOP TVD: 500' Date Completed: Ground level: 66' RKB: 21' Revised by: Kevin Skiba Last Revision Date:I October 13, 2008 Page 1 of 3 • • Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Thursday, July 17, 2008 9:58 AM To: 'Tank, Will' Cc: Berga, Pete; Eynon, Don Subject: RE: KDU 9 - AGAIN Will, Thanks for the information and analysis. This information demonstrates that there have been discussions with everyone involved getting on the same page. I do appreciate the time that everyone has put into this work. It is important to be consistent. Call or message with any questions. Tom Maunder, PE AOGCC From: Tank, Will [mailto:wjtank @marathonoil.com) Sent: Tuesday, July 15, 2008 12:58 PM To: Maunder, Thomas E (DOA) Cc: Berga, Pete; Eynon, Don Subject: RE: KDU 9 - AGAIN Tom, Sorry I didn't get with you sooner. I was in Anchorage last week and we had a visit with the folks at the BLM and one of the questions I asked concerned higher test pressures for casing and what kind of reporting requirements that it would take for them. If we meet their minimum values, they are fine with higher pressures. I have reviewed the well plan and would make the following recommendations concerning casing tests for KDU 9. As noted in the drilling program, due to BLM requirement, a full 5,000 psi BOP pressure test will be required. As per AOGCC Regulations the casing should be tested to 50% of the BOP test. 13 3/8" Surface Casing - I would recommend we stay with 1,500 psi, since the MASP is 0 in this hole section and the MAWP is 2,345 psi. If we test to 2,500 psi, we will exceed the MAWP for 13 3/8" casing. N/ las °O 9 5/8" 1st Intermediate Casing - I would recommend we test to 2,500 psi, since the MAWP is 3,254 psi with our mud weights that we will be utilizing in the 2nd Intermediate hole section (the highest value is around 12.1 ppg). This would satisfy the AOGCC requirement. �� _� g 3c OO ve 7" 2nd Intermediate Liner - I would recommend the same test of 2,500 psi, since the 9 5/8" will see the same pressure on this. The liner hanger packer has a differential rating of 10,000 psi, so there is no problem here as well sI`v_D 4 1/2" Production Liner - I would recommend a casing test of 4,000 psi once the liner top is polished and the hole is displaced to KCL brine. Once the well is displaced to brine the MAWP of the 9 5/8" will be 4,025 psi (which is 70% of burst yield). Our completion method for this well once the 4 1/2" tieback string is put in place is to have 4,000 psi on the backside of the 4 1/2" monobore (exposing the 9 5/8" casing, 7" liner top packer, 7" liner, and 4 1/2" liner top packer to this pressure), and 8,000 psi N2 and water above a pert gun inside the 4 1/2" string for an extreme overbalance perforation of the payzone. You have 4,000 psi differential across the 4 1/2" monobore above the tie -back which is well within the MAWP of 7,112 psi. I think this addresses all of the concerns you had. Please review this and let me know if you concur. Thanks, 7/17/2008 • Page 2 of 3 Will From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Thursday, June 26, 2008 11:02 AM To: Tank, Will Cc: Berga, Pete Subject: RE: KDU 9 - AGAIN Thanks much Will. I will make the corrections. Regarding casing and tubing test pressures, does Marathon have anything specific in their guidelines /policies? The AOGCC minimum requirement is 50% of the BOP rating which on face value here would be 2500 psi. With the anticipated SITP being nearly 3000 psi isn't it logical to test to at least that surface pressure? If the completion involves higher surface pressures, it may be appropriate to test even higher. I'd appreciate your thoughts on this. It just seems that meeting the minimum requirement does not consider the anticipated service the well will experience. look forward to your reply. Tom Maunder, PE AOGCC From: Tank, Will [mailto:wjtank @marathonoil.com] Sent: Thursday, June 26, 2008 5:20 AM To: Maunder, Thomas E (DOA) Cc: Berga, Pete Subject: RE: KDU 9 - AGAIN Tom, Got your message after I left the office yesterday afternoon. I have Pete, Bess Anne, etc in Houston on future year planning the last few days. I will try to answer your questions in an e-mail, but if you need further clarification today, please call my cell phone at 713- 203 -8398. 1. On Page 11 of the prognosis you caught my cut and paste mistake. You are correct. This is not an EXCAPE well, so I have cleaned up those references and am attaching a clean copy of the prognosis for you. 2. Concerning your question on the casing test pressures, I am trying to follow the BLM requirement for minimum casing test pressures. They require 0.22 psi /ft times the measured depth or 1,500 psi, whichever is greater, not to exceed 70% of minimum internal yield (my MAWP calculation). That's why the casing test pressures are different. There was a typo on page 10 for the 2nd intermediate where I had not changed the casing test pressure from 1,500 psi to 2,000 psi, but the table on page 15 had the correct values. Everything is changed to consistent values now. 3. Concerning the SITP, once the well is completed and is perforated in the Tyonek D sands, we would anticipate a pore pressure of approximately 8.0 ppg at around 9,200' TVD for a bottom hole of somewhere around 3,827 psi. Minus a gas column (0.1 psi /ft) to surface the shut -in tubing pressure would be around 2,905 psi. I hope this answers your questions. Sorry about the typo's in the program. If you need anything, please feel free to either e-mail or call me on my cell phone. Thanks, Will From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Wednesday, June 25, 2008 5:16 PM 7/17/2008 • Page 3 of 3 To: Tank, Will Subject: RE: KDU 9 - AGAIN Will, On page 11, running an EXCAPE system is mentioned. Is this an artifact? It does not appear that this well is planned for such a system. Also, what is the anticipated SITP for this well? Thanks, Tom From: Maunder, Thomas E (DOA) Sent: Wednesday, June 25, 2008 2:04 PM To: Will Tank Subject: KDU 9 Will, I am reviewing the permit application for this well. I am moving it forward, however I have a couple of questions ... Would you have a look at the various casing test pressures and then give me a call. I am having difficulty understanding the basis for the test pressures. Thanks in advance, Tom Maunder, PE AOGCC 7/17/2008 • i SHL 2081060 X Y Agency 274850.00 2361856.00 Operator 274890.00 2361743.00 Difference -40.00 113.00 Diverter line KDU 9 Marathon,,,ras Field Page 1 of 1 • Regg, James B (DOA) PM fig, )% From: Regg, James B (DOA) 1 /14Io 5 Sent: Monday, July 14, 2008 2:08 PM To: 'Rig Glacier 1, 907 - 283 -1312' Cc: DOA AOGCC Prudhoe Bay; Maunder, Thomas E (DOA) Subject: RE: Diverter line KDU 9 Marathon Gas Field Rowland - Your request for a diverter system variance is denied (request made verbally to the Commission's North Slope office on 7/13). The regulations require at least 75 feet from diverter vent line outlet to potential ignition source. While paragraph (h) of 20 AAC 25.035 gives the Commission discretion to approve a variance, you must show at least equally effective means of diverting flow away from the drill rig. The significantly shorter length of the diverter vent line does not establish the equivalence. From our phone discussion this afternoon, I understand you will add a 29 -ft joint to extend the diverter vent line. Based on my calculations, that will provide at least 75 feet distance from the outlet to the closest ignition source. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 From: Rig Glacier 1, 907 - 283 -1312 [mailto:temp.s4z @marathonoil.com] Sent: Monday, July 14, 2008 11:56 AM To: Regg, James B (DOA) Cc: Berga, Pete Subject: Diverter line KDU 9 Marathon Gas Field Jim....Find enclosed the pictures of the diverter line R/U for well KDU9. The closest ignition point would be the carrier motors at 55'. The line extends past the knife valve in the substructure 41'. We will have a gas detector in the possum belly while drilling. On the opposite side of the rig we have a waste water building that could be a possible ignition point. If you have any questions please contact me at 283 -1312 or 394 -0953. Thanks....Rowland Lawson. 7/14/2008 • • n ?g- ro Diverter Line — Inlet Glacier 1 Rig KDU Well #9 July 14, 2008 PtGr'a B , r ,, ._ / a( - ho, , , t .g ' f . • , „ . ,.,- it., ,..i., s• r»e far , F l f' r L 41.:'- 4 „.,f..!:_i_..„,„, g b x s .. 1 I • • fil 141 44 1 ,,,. 4 r 5. . \ k .. . - .ali _ 1k! ..,,,isti . .. , I Ilits41, r } .,....„,„„.„,,,,,,,,,,. .. ., E * ° ,.• 1 . » I 7 Page 1 of 2 • Maunder, Thomas E (DOA) From: Tank, Will [wjtank @marathonoil.com] Sent: Thursday, June 26, 2008 5:20 AM To: Maunder, Thomas E (DOA) Cc: Berga, Pete Subject: RE: KDU 9 - AGAIN Attachments: KDU 9 Drilling Prognosis.ZIP Tom, Got your message after I left the office yesterday afternoon. I have Pete, Bess Anne, etc in Houston on future year planning the last few days. I will try to answer your questions in an e-mail, but if you need further clarification today, please call my cell phone at 713- 203 -8398. 1. On Page 11 of the prognosis you caught my cut and paste mistake. You are correct. This is not an EXCAPE well, so I have cleaned up those references and am attaching a clean copy of the prognosis for you. 2. Concerning your question on the casing test pressures, I am trying to follow the BLM requirement for minimum casing test pressures. They require 0.22 psi /ft times the measured depth or 1,500 psi, whichever is greater, not to exceed 70% of minimum internal yield (my MAWP calculation). That's why the casing test pressures are different. There was a typo on page 10 for the 2nd intermediate where I had not changed the casing test pressure from 1,500 psi to 2,000 psi, but the table on page 15 had the correct values. Everything is changed to consistent values now. 3. Concerning the SITP, once the well is completed and is perforated in the Tyonek D sands, we would anticipate a pore pressure of approximately 8.0 ppg at around 9,200' TVD for a bottom hole of somewhere around 3,827 psi. Minus a gas column (0.1 psi /ft) to surface the shut -in tubing pressure would be around 2,905 psi. I hope this answers your questions. Sorry about the typo's in the program. If you need anything, please feel free to either e-mail or call me on my cell phone. Thanks, Will From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Wednesday, June 25, 2008 5:16 PM To: Tank, Will Subject: RE: KDU 9 - AGAIN Will, On page 11, running an EXCAPE system is mentioned. Is this an artifact? It does not appear that this well is planned for such a system. Also, what is the anticipated SITP for this well? Thanks, Tom From: Maunder, Thomas E (DOA) Sent: Wednesday, June 25, 2008 2:04 PM To: Will Tank Subject: KDU 9 6/26/2008 Page 2 of 2 • Will, I am reviewing the permit application for this well. I am moving it forward, however I have a couple of questions ... Would you have a look at the various casing test pressures and then give me a call. I am having difficulty understanding the basis for the test pressures. Thanks in advance, Tom Maunder, PE AOGCC II 6/26/2008 1 STA \1717 P Fr L �� 1_Y SARAH PAL/N, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COM1'HSSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Willard Tank Advance Senior Drilling Engineer Marathon 011 Company 3201 C. Street Ste 800 Anchorage, AK 99503 Re: Kenai Gas Field, Deep Tyonek Pool, KDU 9 Marathon Oil Company Permit No: 208 -106 Surface Location: 158' FNL, 1057' FEL, SEC. 7, T4N, R11W, S.M. Bottomhole Location: 865' FNL, 2236' FEL, SEC. 7, 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 day of June, 2008 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. • Worldwide Drilling North America / Marathon P.O. Box 3128 M ARATHON Oil Company Houston, TX 77253 -3128 Telephone 713 - 629 -6600 Fax 713 -499 -6737 June 17, 2008 Daniel T. Seamount, Jr. Commissioner State of Alaska RECEIVED Alaska Oil & Gas Conservation Commission 333 West 7 Ave, Suite 100 JUN 18 2008 Anchorage, AK 99501 Alaska Oil & Gas Cons, Commission Anchorage Reference: Drilling Permit Application Field: Kenai Gas Field Well: KDU 9 Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments. The intent is to drill a well in the Deep Tyonek Pool in the Kenai Gas Field. No completion is desired in the Sterling, Beluga, or Upper Tyonek pools. For the directional data we utilize the National Geodetic Survey conversion in the program CORPSCON to calculate the State Plane Coordinates in NAD 27 for the planned and actual wellpaths from the NAD 83 data and present both in our directional survey attachment for the 10 -401. We also provide the same data electronically, so that the AOGCC has this for data input into their database. If you require further information, I can be reached at 713 - 296 -3273 or by e-mail at wjtank @marathonoil.com. Sinc ely, Willard J. Tank Advanced Senior Drilling Engineer Enclosures _ - RECEIVED STATE OF ALASKA � S �Uh 1 � 200 ALAS OIL AND GAS CONSERVATION COMMI 'ION > PERMIT TO DRILL Alaska nil & Gas Cons. Commission 20 AAC 25.005 Anchorage la. Type of Work: 1b. Current Well Class: Exploratory 0 Development Oil ❑ lc. Specify if well is proposed for: Drill isi Redrill 0 Stratigraphic Test 0 Service 0 Development Gas 0 Coalbed Methane 0 Gas Hydrates ❑ Re -entry ❑ Multiple Zone el Single Zone 0 Shale Gas rii 2. Operator Name: 5. Bond: Blanket fa Single Well D 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 KDU 9 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 9,769 TVD: 9,435 Kenai Gas Field 4a. Location of Well (Governmental Section): 7. Property Designation: Deep Tyonek Pool Surface: 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. A- 028142 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 865' FNL, 2,236' FEL, Sec. 7, T4N, R11W, S.M. July 3, 2008 Total Depth: 9. Acres in Property: 14. Distance to Nearest 865' FNL, 2,236' FEL, Sec. 7, T4N, R11W, S.M. 2,560 Property: 3,564 ft 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 274,850.655 y - 2,361,856.775 Zone - 4 (Height above GL): (21' AGL) 87 feet Within Pool: 2,020 ft KDU 1 1 16. Deviated wells: Kickoff depth: 500 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 33.9 degrees Downhole: 5,408 Surface: 3,165 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 K -55 PE 118' 0' 0' 139' 139' 16" 13 3/8" 68 K -55 BTC 1,629' 0' 0' 1,650' 1,500' 494 sacks 12 1/4" 9 5/8" 40 L -80 BTC 5,610' 0' 0' 5,631' 5,297' 342 sacks 8 1/2" 7" 26 L -80 BTC 3,571' 5,430' 5,096' 9,001' 8,667' 183 sacks lead, 152 sacks tail 6 1/8" 4 1/2" 12.6 L -80 Hydril 563 969' 8,800' 8,466' 9,769' 9,435' 41 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): Perforation Depth TVD (ft): 20. Attachments: Filing Fee 151 BOP Sketch 1151 Drilling Program 151 Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat Q Diverter Sketch ig Seabed Report ❑ Drilling Fluid Program isi 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature �j /j.. u WJ -- Phone 713 - 296 -3273 Date June 17, 2008 Commission Use Only Permit to Drill API Number: Permit Approval ,per See cover letter for other Number: �0�'/0,�0 _ 50- /J3o1OS7 ,fO ll' OOO Date: ' or�LP • U o 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 sh les: [r Other: Samples req'd: Yes[' No Mud log req'd: Yes[ Non 3 H measures: Yes No Directional svy req'd: Yes[ NoE V 5 e 6.7217A9/ DATE: APPROVED BY THE COMMISSION , COMMISSIONER Form 10 401 12/2005 j p I l I N A 1 Submit in Duplicate • KDU 9 Marathon Oil Company Drilling Program Alaska MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KDU 9 Originator: Will Tank June 16, 2008 Date Reviewed by: Pete Berqa ate Bryan Roy Date 6/16/2008 Page 1 of 21 • • KDU 9 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 9 4.6 Drilling Program Summary 9 4.7 Casing Program Summary 12 4.8 Casing Design 12 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) 12 4.10 Casing Test Pressure Calculations 13 4.11 Blowout Prevention Equipment, Testing and General Procedures 13 4.11.1. Function Testing 13 4.11.2. Pressure Testing 13 1 4.12 Wellhead Equipment Summary 13 4.13 Directional Program Summary 13 4.14 Directional Surveying Summary 13 4.15 Drilling Fluid Program Summary 13 4.16 Drilling Fluid Specifications 13 4.17 Solids Control Equipment 13 4.18 Cement Program Summary 13 4.19 Bit Summary 13 4.20 Hydraulics Summary 13 4.21 Formation Integrity Test Procedure 13 6/16/2008 Page 2 of 21 • KDU 9 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 6/16/2008 Page 3 of 21 • • KDU 9 Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °27'30.584 "N Longitude - 151 °14'58.119 "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 Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go approximately 5 miles, just Ground past the Kenai Gas Field office at Pad 34 -31. Turn East onto the next lease road South of the Kenai Gas Field office. Travel Southeast 1 mile to pad 14 -6. Go through pad and continue East 0.5 mile to pad 41 -7. 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: 6/16/2008 Page 4 of 21 • 0 KDU 9 Marathon Oil Company Drilling Program Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Horne 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 Jennifer Enos Geologist 713 - 296 -3319 713 - 408 -3583 Clyde Scott Reservoir Engineer 713 - 296 -2336 Craig Rang Completion Engineer 907- 283 -1372 907 - 394 -1824 Ken Walsh Production Engineer 907 - 283 -1311 907 - 394 -3060 907- 283 -3050 Rowland Lawson Drilling Supervisor 907 - 283 -1312 907 - 394 -0953 907 - 283 -1313 John Nicholson Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Dan Byrd Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Mitch Burns Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 2. Regulatory Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Landman 713 - 296 -3254 979 - 830 -7927 979 - 836 -9390 713 -499 -6748 2.1.2. External Regulatory Contact i Contact Title Office Phone Facsimile 24 hr Emergency Pager AOGCC 907 - 793 -1236 AOGCC North Slope Pager - 907 - 659 -3607 BLM 907 - 267 -1442 3. Regulatory Compliance Regulation Requirement Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig. BOP testing interval requirement is now 14 days (20 AAC 25.035 e 10 A). BOP Testing Requirement for a 24 hour notice to AOGCC and to the BLM prior to BOP tests. (20 AAC 25.035 e 10 F) Prior to Spud Requirement for a 24 hour notice to AOGCC and to the BLM prior to spud of the well. Water Sampling Test the rig camp water for the Class C drinking water permit. Surface Casing & Cementing Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing surface casing. Intermediate Casing & Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing intermediate casing. Cementing Cuttings Tank Take picture of cutting tank in use and after cleaning for the ADEC. 6/16/2008 Page 5 of 21 0 KDU 9 Marathon Oil Company Drilling Program Alaska Logging Requirement for a 24 hour notice to the BLM prior to logging. Production Casing & Requirement for a 24 hour notice to the BLM prior to setting and cementing Production casing (EXCAPE string) Cementing the well. Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig, if going to Ninilchik or Kasilof. Comments 6/16/2008 Page 6 of 21 0 • KDU 9 Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name KDU 9 Lease / License Surface Location 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. WBS Code DD.08.17777.CAP.DRL Slot/Pad KGF Pad 41 -7 Field Kenai Gas Field Spud Date 7/3/08 (est.) KB (above MSL) 88' County /Province Kenai Peninsula API No. GL (above MSL) 67' State / Country Alaska Permit No. Perm. Datum KB Total MD 9,769' Well Class Development Water Depth N/A Total TVD 9,435' 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 Anchorage, AK 99519 -6168 907 - 561 -5311 907 - 565 -3076 4.3 Geologic Program Summary Surface Location Coordinates — NAD 83 From Lease /Block Lines 158' FNL, 1,057' FEL, Sec. 7, T4N, R11W, S.M. Latitude 60° 27' 30.584" N Longitude 151° 14' 58.119" W UTM North (Y) 2,361,612.230' UTM East (x) 1,414,878.400' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Sterling A -8 (Not a Prod Target) 3,899 3,567 0.8 - 6.5 Sandstone Gas/Water Beluga (Not a Prod Target) 4,989 4,655 ,v .r� 1.5 - 7.3 Sandstone Gas Middle Beluga (Not a Prod Target) 5,646 5,312 * (Ash c 5.8 - 8.5 Sandstone Gas Tyonek (Not a Prod Target) 7,496 7,162 5.8 - 10.6 Sandstone Gas Tyonek 80 Coal (Not a Prod Target) 8,371 8,037 11.0 - 11.5 Coal Gas/Water Tyonek 84 -6 Sand (Not a Prod Target) 8,710 8,376 11.5 - 12.0 Sandstone Gas Tyonek 86 -2 Sand (Not a Prod Target) 8,771 8,437 4 11.5 - 12.0 Sandstone Gas Tyonek D1 (Primary Target) 9,001 8,667 P ,:, 8.0 - 9.0 Sandstone Gas Tyonek D2 (Primary Target) 9,116 8,782 8.0 - 9.0 Sandstone Gas Tyonek D5 (Primary Target) 9,714 9,380 8.0 - 9.0 Sandstone Gas 6/16/2008 Page 7 of 21 1 KDU 9 • • 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) Base of Upper 5,631 5,297 865' FNL, 2,236' FEL, Sec. 7, T4N, R11W, S.M. -707 -1,179 Circle 350' radius Beluga Tyonek D Sand 9,021 8,687 865' FNL, 2,236' FEL, Sec. 7, T4N, R11W, S.M. -707 -1,179 Circle 350' radius TD 9,769 9,435 865' FNL, 2,236' FEL, Sec. 7, T4N, R11W, S.M. -707 -1,179 Circle 350' radius Comments: No zones above the Sterling A8 (3,899' MD, 3,567' TVD) contain oil or gas. The proposed top of cement for the intermediate casing is over 500' above the Sterling A8. 4.4 Summary of Potential Drilling Hazards Depth KB Hazard Event (TVD) Discussion Precautions 1 st Lost Circulation in Low Pressure Intermediate Control losses by using sufficiently sized LCM, Take care not to surge the hole during Sterling and Beluga sands Hole including fibrous and calcium carbonate types. tripping operations. 2 nd Over Pressured Tyonek 84 -6 Control using sufficiently high mud weight to control Intermediate Maintain proper mud weight at all times. and 86 -2 Hole pore pressure. Lost Circulation in Low Pressure Production Control losses by using sufficiently sized LCM, Take care not to surge the hole during Tyonek D sands Hole 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- 3,899' MD (3,567' 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: 6/16/2008 Page 8 of 21 KDU 9 Marathon Oil Company Drilling Program Alaska 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None None 0' — 1,650' MD 1 Intermediate None None Basic with GCA, shale density, temperature in and 1,650' — 5,631' MD out, sample collection (10' samples). 2 Intermediate None LWD GR for correlation, depth control for Basic with GCA, shale density, temperature in and 5,631' — 9,001' MD 7" casing setting depth. out, sample collection (10' samples). Production None Reeves Quad Combo, MFT Pressures. Basic with GCA, shale density, temperature in and 9,001' — 9,769' MD Pull GR- Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 120', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. RU crane and hammer. Drive 20" conductor to +/ -120 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4 ", 2M flanged. 4. Nipple up 21 1/4 ", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 16" hole to +/- 1,650' set 13 -3/8" casing. 1. Drill a 16" hole to 1,650' MD (1,582' TVD) per the directional plan. 2. RIH with 13 3/8" casing and hang off in the elevators. Make up stab -in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab -in float collar. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. 3. Cut off 13 3/8" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/2,,0 psi. 6. Set wear bushing. 7. Test surface casing to 1,500 psi.�� Ski QUC� 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: 6/16/2008 Page 9 of 21 • • KDU 9 Marathon Oil Company Drilling Program Alaska 1 Intermediate: Drill 12 -1/4" hole to +/- 5,631' set 9 5/8" casing. 1. PU 12 1/4" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 13 ppg. Estimated Leak Off EMW is 15 ppg. 3. Drill 12 1/4" directional hole to 5,631' MD (5,297' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH and lay down BHA. Pull wear bushing. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 2,500 psi. 6. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 500AP51 7. Back out landing joint. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 250/2'00 psi. 8. Set wear bushing. Test casing to 1,500 psi. Best Practices: 9\4 t 1 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. 2 Put lubricant in prior to drill out of intermediate shoe. 3 -5% Lubetex 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 fibrous material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. 2nd Intermediate: Drill 8 -1/2" hole to +/- 9,001' set 7" liner. 1. PU 8 1/2" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Given higher pressures anticipated in the Tyonek the shoe needs to be tested to leak off. Estimated EMW 14 - 15 ppg. 3. Drill 8 1/2" directional hole to 9,001' MD (8,667' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH and lay down BHA. Pull wear bushing. 5. Change out variable pipe rams with 7" casing rams. Run test plug and test casing rams to 2,500 psi. 6. RU and run 7" BTC casing liner with hanger on drill pipe. Run liner to TD with top of liner at approximately 5,430' MD. On bottom reciprocate while circulating the hole. 7. RU cementing company. Cement 7" while reciprocating. Drop wiper plug and bump plug to pressure up and set the liner hanger. Release hanger running tool, pick up and clear seal area of any cement. Pick up out of liner. 8. Circulate hole clean. If cement circulates, TOOH laying down 5" drillpipe. If cement doesn't circulate, WOC, then prepare and pump liner top job. Lay down 5" drillpipe once top job is complete. 9. Once cement is either circulated or the liner top is squeezed, PU mill for 7" along with string mill for 9 5/8" casing on 4" drillpipe. Make cleanout trip to top of 7" liner with mill combo. Polish 7" liner seal bore. 10. Run 7" liner hanger packer with hydraulic pusher tool. Stab into polish bore receptacle and set packer. TOOH. 11. Change out 7" casing rams with variable 'pe rams. Run test plug and test rams to 250/2,500 psi. 12. Set wear bushing. Test casing to 1 psi. Best Practices: 3 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. 4 Put lubricant in prior to drill out of intermediate shoe. 3 -5% Lubetex is normally required, possibly more depending on solids in the mud. Maintain a minimum of 3% throughout the hole section. Comments: 6/16/2008 Page 10 of 21 • • KDU 9 Marathon Oil Company Drilling Program Alaska Production: Drill 6 1/8" hole to +/- 9,769' set 4 -1/2" liner. Tie back to surface with 4 -1/2" tubing. 1. PU 6 1/8" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 13 ppg. Estimated Leak Off EMW 15 ppg. 3. Drill 6 1/8" hole to an anticipated TD of 9,769' MD (9,435' 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/ 6 1/8" bit to TD for wiper trip. TOOH and laydown BHA and some 4" drill pipe. Pull wear bushing. 7. RU and run 4 1/2" Hydril 563 casing liner with hanger on drill pipe. Run liner to TD with top of liner at approximately 8,800' MD. On bottom reciprocate and rotate liner while circulating the hole. 8. RU cementing company. Cement 4 1/2" while reciprocating and rotating pipe. Drop wiper plug and bump plug to pressure up and set the liner hanger. Release hanger running tool, pick up and clear seal area of any cement. Pick up out of liner. 9. Circulate hole clean. If cement circulates, TOOH. If cement doesn't circulate, WOC, then prepare and pump liner top job. 10. Once cement is either circulated or the liner top is squeezed, PU mill for 4 1/2" along with string mill for 7 5/8" casing. Make cleanout trip to top of 4 1/2" liner with mill combo on drill pipe. Polish 4 1/2" liner seal bore. 11. Run 4 1/2" liner hanger packer with hydraulic pusher tool. Stab into polish bore receptacle and set packer. TOOH laying down drill pipe. 12. Run 4 1/2" casing with seal unit. Displace hole with 6 % KCL. Space out tubing and land hanger. ND BOP, NU tree and test to 5,000 psi. 13. Rig down and move out drilling rig. Note: Best Practices: 1 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. 2 Put lubricant in prior to drill out of intermediate shoe. 5% Lubetex is normally required, possibly more depending on solids in the mud. Comments: Completion: Completion will be done without a rig. This will include perforating utilizing extreme overbalance. Wellbore clean out might be required and could include slickline and possibly nitrogen jetting via coil. The final lifting may involve a coiled tubing gas lift string run later. Best Practices: 1 Comments: 6/26/2008 Page 11 of 21 • KDU 9 Marathon Oil Company Drilling Program Alaska Production: Drill 6 1/8" hole to +/- 9,769' set 4 -1/2" liner. Tie back to surface with 4 -1/2" tubing. 1. P • 1/8" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Tes' oe to an FIT of 13 ppg. Estimated Leak Off EMW 15 ppg. 3. Drill 6 :" hole to an anticipated TO of 9,769' MD (9,435' TVD) as per the directional program, short tripping as required. 4. At TD cir ate hole clean. Make wiper trip. TOOH. 5. RU Precisio Run open hole logs as per plan. RD logging company. 6. TIH w/ 6 1/8" b o TD for wiper trip. TOOH and laydown BHA and some 4" drill pipe. Pull wear bushing. 7. RU and run 4 1/ ydril 563 casing liner with hanger on drill pipe. Run liner to TD with top of liner at approximately 8,800' MD. On bottom rec ocate and rotate liner while circulating the hole. 8. RU cementing compa Cement 4 1/2" while reciprocating and rotating pipe. Drop wiper plug and bump plug to pressure up and set the liner hanger. ' elease hanger running tool, pick up and clear seal area of any cement. Pick up out of liner. 9. Circulate hole clean. If ce t circulates, TOOH. If cement doesn't circulate, WOC, then prepare and pump liner top job. 10. Once cement is either circula or the liner top is squeezed, PU mill for 4 1/2" along with string mill for 7 5/8" casing. Make cleanout trip to top of 4 1/2" line ith mill combo on drill pipe. Polish 4 1/2" liner seal bore. 11. Run 4 1/2" liner hanger packer wit' ' draulic pusher tool. Stab into polish bore receptacle and set packer. TOOH laying down drill pipe. 12. Run 4 1/2" casing with seal unit. Displa• - hole with 6 % KCL. Space outtipeRSEDED. ND BOP, NU tree and test to 5,000 psi. 13. Rig down and move out drilling rig. Ce Note: Drill all hole sections with 5" drillpipe. Perforatin ! uns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be a ated by control line to surface. Best Practices: 1 Do not circulate on bottom longer than hour prior to moving pipe on a short trip to minimize hole washout. This is important when w• ing on log analysis to give EXCAPE module placement points. 2 Put lubricant in prior to drill out of intermedi . • shoe. 5% Lubetex is normally required, possibly more depending on solids in the mud. Comments: Completion: Completion will be done without a rig. This ill include perforating utilizing extreme overbalance. Wellbore clean out might be require. - nd could include slickline and possibly nitrogen jetting via coil. The final lifting may involve a oiled tubing gas lift string run later. Best Practices: 1 Comments: 6/16/2008 Page 11 of 21 • • KDU 9 Marathon Oil Company Drilling Program Alaska 4.7 Casing Program Summary MD (ft) Connection API Ratings Casing Makeup Hole �, 0 o y 7 O_ f6 Q C Q. Size Weight ID Drift O. D. Torque Size m 0 (in) Top Bottom (Ibs /ft) (in) (in) Grade Type (in) (ft -Ibs) (in) 13 3/8 0 1,650 68 12.415 12.259 K -55 BTC 14.375 N/A * 16 3,450 1,950 1,300 9 5/8 0 5,631 40 8.835 8.679 L -80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 7 5,430 9,001 26 6.276 6.151 L -80 BTC 7.656 N/A * 8 1/2 7,240 5,410 667 41/2 8,800 9,769 12.60 3.958 3.833 L -80 Hydril 563 5.2 10,080 61/8 8,430 7,500 288 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum Casing Depth Mud Wt Frac. Form Surface a o Size Weight TVD When Set Grad Press Pressure = o c (in) (lb/ft) Grade (ft) (lb/gal) (lb/gal) (lb/gal) (psi) m 0 1- 13 3/8 68 K -55 1,500 9.2 15.0 8.4 0 2.20 2.58 2.98 9 5/8 40 L -80 5,297 9.3 14.0 7.0 2,283 1.73 1.21 2.84 7 26 L -80 8,667 12.1 15.0 8.0 2.27 1.00 3.03 41/2 12.60 L -80 9,435 9.2 15.0 8.0 2,283 1.10 1.66 1.98 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 torque shown for the Hydril 563 is 80% of yield. The final make up torque for the liner should exceed any potential torque that would be used to release the running tool from the hanger. * - Make up buttress connection to proper mark, not to a torque value. Comments: i. ALL CASING WILL BE NEW CASING. ii. Burst design on the 4 1/2" liner is restricted to 8,600 psi surface pressure with a 7.0 ppg fluid (N plus 200' water cap for Extreme Overbalance Perforating). 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** Mud /Gas (in) (ft) (psi) (psi) Percentage 13 3/8 1,500 2,345 0 30/70 9 5/8 5,297 3,254 3,165 30/70 7 8,667 3,254 1,911 30/70 4 1/2 9,435 3,254 1,911 30/70 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure 6/16/2008 Page 12 of 21 • • KDU 9 Marathon Oil Company Drilling Program Alaska The calculation method for MASPBHP has been modified from the standard AOGCC use of a Bottom Hole Pressure — 0.1 psi /ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure — 30% Mud Column — 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. Surface casing: 13 3/8" (1,650' MD, 1,500' TVD) MASPf = ((Fracture gradient at shoe) x .052 x TVD - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 1,500') - (0.1 psi /ft x 1,500') MASPfrac = 1,170 psi - 150 Si p MASPfrac = 1,020 psi. MASPbh = BHP o p e n hole td — Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASP = (1.50 ppg x .052 x 5,297') — (0.3 x 9.3 ppg x .052 x 5,297') — (0.7 x 0.1 psi /ft x 5,297') MASPbh = 413 psi — 768 psi — 371 psi MASPbh = 0 psi MASP = MASPbhp = 0 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 3,450) — (9.2 — 8.3) x .052 x 1,500' MAWP = 2,415 psi — 70 psi = 2,345 psi 1 Intermediate casing: 9 5/8" (5,631' MD, 5,297' TVD) MASPf = ((Fracture gradient at shoe) x .052 x TVD - Hydrostatic pressure of gas column at the shoe. MASPfrac = (14.0 ppg x .052 x 5,297') - (0.1 psi /ft x 5,297') MASPfrac = 3,856 psi - 530 psi MASPfrac = 3,326 pSi. MASPbhp = BHPopen hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (12.0 ppg x .052 x 8,667') — (0.3 x 12.1 ppg x .052 x 8,667') — (0.7 x 0.1 psi /ft x 8,667') MASPbh = 5,408 psi — 1,636 psi — 607 psi MASPbh = 3,165 psi \ w / AC..? ■ MASP = MASPbh = 3,165 psi A9-21\1 ` 2 MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (12.1 — 9.3) x .052 x 5,297' MAWP = 4,025 psi — 771 psi = 3,254 psi 2 Intermediate casing liner: 7" (Top — 5,430' MD, 5,096' TVD) (Bottom - 9,001' MD, 8,667' TVD)) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDsnoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 8,667') - (0.1 psi /ft x 8,667') MASPfrac = 6,760 psi - 867 psi MASPfrac = 5,893 psi. MASPbh = BHP open hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (8.0 ppg x .052 x 9,435') — (0.3 x 9.2 ppg x .052 x 9,435') — (0.7 x 0.1 psi /ft x 9,435') MASPbhp = 3,925 psi — 1,354 psi — 660 psi MASPbh = 1,911 psi 6/16/2008 Page 13 of 21 • • KDU 9 Marathon Oil Company Drilling Program Alaska MASP = MASPbhp = 1,911 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 7,240) — (9.2 — 9.3) x .052 x 8,667' MAWP = 5,068 psi — 0 psi = 5,068 psi MAWPT = MAWP9 /8 = 3,254 psi Production liner: 4 1/2" (Top — 8,800' MD, 8,466' TVD) (Bottom - 9,769' MD, 9,435' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 9,435') - (0.1 psi /ft x 9,435') MASPfrac = 7,359 psi - 944 psi MASPfrac = 6,415 psi. MASPbh = BHP open hole id - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (8.0 ppg x .052 x 9,435') — (0.3 x 9.2 ppg x .052 x 9,435') — (0.7 x 0.1 psi /ft x 9,435') MASPbhp = 3,925 psi — 1,354 psi — 660 psi MASPbhp = 1,911 psi MASP = MASP7. = MASPbn = 1,911 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 8,430) — (9.2 — 9.2) x .052 x 9,435' MAWP = 7,112 psi — 0 psi = 7,112 psi MAWP4 /2" = MAWP9 /8" = 3,254 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: 6/16/2008 Page 14 of 21 • • KDU 9 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 13 3/8 2,345 0 1,500 9.2 (1) 13 5/8" 5M blind ram 250/5,000 (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M pipe ram (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram 1st 9 5/8 3,254 3,165 1,500 9.3 (1) 13 5/8" 5M blind ram 250/5,000 Intermediate (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M pipe ram (1) 13 -5/8" 5M annular 2nd (1) 13 -5/8" 5M pipe ram Intermediate 7 4,932 1,911 2,000 12.1 (1) 13 5/8" 5M blind ram 250/5,000 Liner (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M pipe ram (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Production 4 1/2 6,669 1,911 2,500 9.2 (1) 13 5/8" 5M blind ram 250/5,000 Liner (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M pipe ram Blowout Preventers The blowout preventer stack will consist of a 13 -5/8" x 5000 psi annular preventer, a 13 -5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top, a 13 -5/8" x 5000 psi drilling spool (mud cross) with 3 -1/8" x 5000 psi outlets, and a 13 -5/8" x 5000 psi single pipe ram. 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. Although MASP calculations indicate a test of 3,500 psi is sufficient, since this requires a 5,000 psi BOP stack, BLM regulations require testing to full pressure rating of the 5,000 psi stack. 4.11.1. Function Testing Function Regularly. 6/16/2008 Page 15 of 21 • • KDU 9 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 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 4 1/2" Fluted Tubing Head U,AA,PSLI,PR1 Mandrel Adapter Flange 13 -5/8" 5M X 4- 1/16" 5M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Program Summary Build Turn Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N / -S +E / -W VS No. Description (ft) (ft) ( °/100') ( °/100') ( °1100') (deg) (deg) (ft) (ft) (ft) 1 Tie On 0 0 0 0 0 0 239.037 0 0 0 2 KOP 500.00 500.00 0 0 0 0 239.037 0 0 0 3 Build up Section 3.00 0 3.00 239.037 4 End of Build 1,631.46 1,566.43 3.00 0 3.00 33.944 239.037 - 167.45 - 279.09 325.47 5 Hold Section 0 0 0 33.944 239.037 6 End of Hold 2,636.70 2,400.36 0 0 0 33.944 239.037 - 456.23 - 760.41 886.77 7 Drop Section -2.00 0 2.00 239.037 8 End of Drop 4,333.89 4,000.00 -2.00 0 2.00 0 239.037 - 707.40 - 1,179.05 1,374.98 9 TD 9,768.89 9,435.00 0 0 0 0 239.037 - 707.40 - 1,179.05 1,374.98 6/16/2008 Page 16 of 21 • • KDU 9 Marathon Oil Company Drilling Program Alaska : TV- 1000 I _ .. 13 3/8 I 2000 KDU 9 Base U Beluga 0— c 3000 r ^ cD w M 400 1 _ _ .. o Al L _ - 5000 KDU 9 Base U Beluga me sio 9 5/8" 0 -c 1` _ 6000 Z a KDU 9 Tyonek D Sand 7000 .__ ___.. _. O co 8000 - KDU 9 Tyonek D Sand 7 - 1000 — -- 9000 — KDU9TD 4 1/2 ' -- - i II KDU9TD 10000 -- I n1 'i1 Ti 1 1 1 11 111 111 111 1111 1 1 1 1 1 -4000 -3000 -2000 -1000 0 1000 2000 3000 4000 5000 6000 -1000 0 Vertical Section at 239.04° (3000 ft/in) West( -) /East( +) (500 ft /in) Comments: Vertical section calculated from a reference azimuth of 239.04° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) KBU 33 -6 164.17 535 KBU 12 -5 184.33 8,100 KBU 42 -7RD 192.98 672 KBU 43 -7X 200.11 1,300 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 Remarks Tool Surface 0 — 1,650' X 1 Intermediate 1,650' — 5,631' X 2 Intermediate 5,631' — 9,001' X Production 9,001' — 9,869' X Best Practices: 1 6/16/2008 Page 17 of 21 KDU 9 Marathon Oil Company Drilling Program Alaska Comments: 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (lb/gal) Fluid Description Additives Viscosifier Barite 0 1,500 8.6 — 9.0 Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL, Sodium Meta Bisulfate Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb 1,500 5,297 9.0 — 9.2 6% Flo -Pro NT w/ Safecarb 10,40, Mix II, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, KlaGard, Lubetex Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb 5,297 8,667 11.0 — 12.0 6% Flo -Pro NT w/ Safecarb 10,40, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Asphasol Supreme, G Seal, Lubetex Flo -Vis, DualFlo, KCI, Greenside, SafeCarb 0 10,40, Barite, Caustic, Conqor 404, Sodium Meta 8,667 9,435 9.2 — 9.4 6% Flo -Pro NT w/ Safecarb Bisulfate, KlaGard, Asphasol Supreme, G Seal, Lubetex 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 1,500 8.6 -9.0 60 -100 N/A 25 -35 NC - 12 +/ -9.5 <7.5 1,500 5,297 9.0 — 9.2 40,000 + 8 - 12 7 — 9 +/- 9.5 +/- 5 5,297 8,667 11.0 — 12.0 30 — 40,000 12 - 18 5 — 7 +/- 9.5 +/- 5 8,667 9,435 9.2 — 9.4 30 — 40,000 10 - 14 5 — 7 +/- 9.5 +/- 5 Best Practices: 1 As a standard practice for tie -back string completions, displace the drilling mud above top of liner with brine treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of fluid. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to control leakoff. 6/16/2008 Page 18 of 21 KDU 9 Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment o a' ti c a' p ._,(1) me _ j� w CO c c • m CJ !t..- m rn p c c _c a) aa) 7 N 7 O a' Interval 0 ° U U U N Comments 0 — 9,769' 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: 6/16/2008 Page 19 of 21 • . KDU 9 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 (ppg) ( %) (hrs) 20 120 120 Driven N/A 13 3/8 1,650 1,500 16 0 0 756 1,239 12.0 75 8 9 5/8 5,631 5,297 12 1/4 3,300 2,988 730 1,022 10.5 40 24 7 9,001 8,667 8 1/2 5,430 5,096 459 630 12.5 / 15.8 40 8 41/2 9,769 9,435 61/8 8,800 8,466 93 122 10.5 40 24 Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (lb /gal) (sx) (ft /sx) (ft (ft) (gal /sx) Type (cc) ( %) 8 hr 24 hr 13 3/8 Tail Type I Cement 12.0 494 2.51 1,239 0 11.28 Fresh 812 0 196 818 9 5/8 Tail Class "G" 10.5 342 2.99 1,022 3,300 12.39 Fresh 24 0 145 1,441 Lead Class "G" 12.5 183 2.47 452 5,430 13.78 Fresh 559 0 92 645 7 Tail Class "G" 15.8 152 1.17 178 8,000 4.99 Fresh 40 0 428 3,437 4 1/2 Tail Class "G" 10.5 41 2.99 122 8,800 12.39 Fresh 24 0 145 1,441 Best Practices: 2 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: See cement prognosis for details and spacer specifications. 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 1,650 16 Christensen MX -1 115 1 - 4 80 - 350 1,650 5,631 12 1/4 Christensen HCM 506Z M323 Up to 52 Motor 5,631 9,001 8 1/2 Christensen HCD605 M323 Up to 25 Motor 9,001 9,769 6 1/8 Christensen DP406X M323 Up to 25 Motor Best Practices: 1 Comments: See bit prognosis for additional information. If a second bit is necessary for the 12 1/4" hole a MX -C3 (IADC 137) should be used to finish this section. Back up bits for the 6 1/8" and 8 1/2" hole section will consist of mill tooth and TCI tricone bits. 6/16/2008 Page 20 of 21 • • KDU 9 Marathon Oil Company Drilling Program Alaska 4.20 Hydraulics Summary Max Press @ Displacement @ Max Rate @ Liner ID Stroke 90% WP 95% Vol. eff 95% Vol. eff Hole Sections Used Qty Make Model (in) (in) (psi) (gal/stroke) (spm /gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle Depth -MD Size Rate Pressure Min AV MW ECD Size AP b at bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32 "s) (psi) Remarks (Drill string configuration) 0 — 1,650 16 650+ 1,400 69 9.3 2 — 18's 1 — 16 Actual Data KBU 24 -7X (@ 1,636' MD) 1,650 — 5,631 12 1/4 550 1,349 108 9.2 9.44 6 — 13's MI Virtual Hydraulics (@ 5,630' MD) 5,631 — 9,001 8 1/2 450 1,942 233 11.5 11.85 6 — 13's MI Virtual Hydraulics (@ 9,001' MD) 9,001 — 9,769 6 1/8 250 987 261 9. 9.75 6 — 11's WellPlan Hydraulics (@ 9,768' MD) Best Practices: 1 Comments: See separate hydraulics calculations. Annular velocities in the 16 ", 12 1/4 ", and 8 1/2" holes were calculated using 5" drillpipe, velocities for the 6 1/8" hole utilizes 4" drillpipe. 4.21 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak -off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak -off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut -in for 10 minutes or until the shut -in pressure stabilizes. Best Practices: 1 Comments: 6/16/2008 Page 21 of 21 ICI • Marathon Oil Well KDU 9 Diverter Flow line 121 1/4" 2M Diverter 16" Automatic Knife Valve 1 Diverter Spool I 11 II 1 1 16" Diverter Line 0 0 Marathon Oil Well KDU 9 BOP Stack 'Flow Nipple _ —♦ Flow Line 13 5/8" 5M Annular Preventer 13 5/8" 5M Double Ram Preventer . Pipe Ram III 2 1/16" 5M . Blind Ram ■ Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves Operated Valve -�— - -` X - -'� I ®- Choke II IIL©III _.._ X 113 5/8" 5M Cross 3 1/8 5M Hydraulically . Pipe Ram . Operated Valve 13 5/8" 5M Single _ ' Ram Preventer Bottom of Single gate must be � 4 24 -45" from ground level for Glacier 1 rig placement. 13 5/8" 5M x 13 5/8" 5M �_ Drilling Spool �I13 5/8" 5M Tubing Head Flange • • Marathon Oil Well KDU 9 Choke Manifold Bleed off Line to To Gas Buster To Blooey Line Shakers K n Wig 6.0.1 Arx Vlir Wir u I I , 1 1 1 1 I t 1 Gp - - ,G - - 00 0 0 0 1 1 1 , I 1 I 1 1 I I l 1 (1 ( I 1 I 1 I I I t I MI APR © I l I Viir u u n I I n Vlir © u M II I l o0 1 1 1 13" 5M Valves I 0 u I lk 2 9/16" 10M Swaco l ' 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke I Gauge Block I Choke Hose to HCR r e (from BOP Stack) 0 - 6,000 psi Choke Control Pressure Gauge Pressure Sensor 9444,%”,4•78{, i�. t� s r itlttts �, . 4,. �� is. ' Pt' 11/01110111111,19111/111.19 � }t a r m t+pr J M4atilhikr N r A R 0104',;k .� is 1 �i n F rdIIi 4u#a1sr oft t or sure to mm wowor Ap p ,,, _ and valves Memo* t .0 -�#arr "KW ldyetdNorodoc« aailux1010 from 0.1600 i � nrsrrrreky **Ad 1 000 . Annular �r s 1 A�r presides operated, l utcar ruartx Pressure regulation of the mean 1Nariillii tlegufA tr tau orinWlrr a g I . •'v4:. it, G .. a i YaNa Nofm�ly in low w ttattir it pressure lam) N#on no pressure 1 1 , fur i wrartions ovlar ari 000 I I I 1 t 1 i. maveto h i 1 pr+uretht) porn • • Manifold Pressure Gauge- 0-6000 r • .... � normally 1600psi 1 1 1 d. tritomon #s, ix,n valve i 1 W O 0" Pressor* .� , a Screen Pressure it . ` 4' ( i 1Fi5t1k; t"r trite SWIM'. i � liAlr on ' SnOn Automata,* *opt pumpswhan Hwy Am* '.. "® 3000 psi old i When the pressure **Pa to 43.. ,/ 119 diu,aq�ei Main Air riatgex _ , ._ _ _.__.� s � 1 � ,744010d { i I to i ii Explosion Proof Benin Motor { lit mu r Rehfa/aNe Air Lubricato set Pop Rccu LOT set at 3200PS1 a r.,. ,_ Use SAE 6 drops i min Check weekly c ti isolation Air ass are $w F r€ rt Seat Guard- Triplex Galley Air Pressure Switch Electric \ alve for Drain Valve Motor Triplex Air Pumps- Bypass- close 60-1 Ratio Switch - Pump but open with pressures Triplex Pump -� above 3000 Psi Check oil level Kapp in Normally Suct on Strainer T mont Fill aura °fin For Air Pum s i close for Suction Valve For R with 10w 40 position Turn off pressure Air operated when i exceeding Pumps - reamians servicing i 3008 PSi open, dose during serviceing Suction strainer for Tipiex pump . clean every 30 {\ days L) • • Surface Use Plan for Kenai Deep Unit, well KDU 9 Surface Location: 158' FNL, 1057' FEL, Sec. 7, T4N, R11 W, S.M. 1) Existing Roads Existing roads which will be used for access to KDU 9 are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access KDU 9. 3) Location of existing wells Well KDU 9 will be drilled on Kenai Gas Field (KGF) pad 41 -7. A pad drawing is enclosed that shows existing wells and the location of KDU 9. 4) Location of existing and /or proposed facilities The locations of existing production facilities in the KGF pad 41 -7 are shown on the enclosed pad drawing. A flowline will be installed from the KDU 9 wellhead to the existing production facilities. 5) Location of Water Supply A water supply well exists on the pad that KDU 9 will be drilled from. This is shown on the pad drawing. 6) 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. There are no topsoil or material stockpiles. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41 -18 of the Kenai Gas Field for disposal into Well KU 24 -7RD, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81 -176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34 -31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7 -194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. • • e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory p p pe sory and service company personnel. Approximately four trailer house type structures pp y yp st uctures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. S & R will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface KDU 9 will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of KDU 9 and the other existing wells on the pad. 10) Surface ownership The surface owner of the land in the Kenai Beluga Unit is the Salamatof Native Association. • • Operator Certification Field: Kenai Gas Field Well: Kenai Deep Unit, KDU 9 Surface Location: 1057' FEL, 158' FNL, Section 7, Township 4N, 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 16 day of June , 20 08 Name Willard J. Tank � GuJ -% 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 wjtankt marathonoil.com (optional) s`` ot! \1 ■• ® ... , c F A`, i L IMITS OF PAD FOOTPRINT CONTROL POINT 2 ® LP.• •. 2 "ALCAP •'• N 2362228.05 * 49 1.11 A a . *, EDGE OF PAD E 275286.68 O' / a..-a. % WELL K.B.U. 34 -6 N 2362145.52 ` ' c '.,M. SCOTT McLANE if i O I E 274939.88 • . • �, K.B.U. 11 -8Y 4928 -S ..._,q- - SECTION 6 N 2362099.03 � � • ailsio ,. ` E 275205.89 \ Ess ,, 11 \ \\\A K.B.U. 12 -5 K.B.U. 41-6 89 K.B.U. 43 -7X K.B.U. 42 -6 N 2362053.15 N 2362054.15 1 E 2742 E 274916.14 N ETE o 2 E 275105.24 K.B.U. 11 8X E 274849.95 O VAULT ® O° °O N 2362053.52 CONCRETE VAULT K.B.U. 33 -6X E 275155.75 N 2362053.82 ® W/PIPEGUAR° E 275051.01 SECTION LINE 6 15 K.B.U. 24 -6H K.B.U.44 -6 METHONAL N 2361975.12 N 2361967.24 7 8 WELL K.D.U. 9 SKID AS -BUILT o O o ® E 275073.71 EO 191.17 N 361999.63 • • ASP ZONE 4 NAD27 K.B.U. 33 -6 K.B.U. 42 -7 K.B.U. 32 -7 E 75909.61 GRID N:2361856.775 N 2361973.64 N 2361975.22 N 2361972.00 GRID E:274850.655 ao -1 6o Z E 274973.25 E 275022.50 E 275138.31 O LAT: 60 °27'32.712 "N , Ll- KENAI GAS SECTION 7 K.T.U. 32 -7H LONG: 151°14'50.268"W FIELD N 2361929.42 - I z FEL = 1057' PAD 41- 7 K.U. 13 -5 CONTROL POINT3 E 275232.74 FNL = 158' 4'OPIPES 2" CAP PIPE GUARD ELEV. , = 6 66.21 ELEV = 65.7' (MSL) z 1: H60 = r) 1057' FEL4 SECTION 7, ON CONCRETE PAD - • TOWNSHIP 4N 8.2' x 31.6' BUILDING ON CONCRETE PAD I PIPE GUARD K.B.U. 41 -7 RANGE 11 W, SM AK K 43 - 6X K.U. 43 -6 RD N 2361808.45 I 16.5'x14.5'BUILDIN N 2361786.64 W ON CONCRETE PAD WASTE WA O.6 TE OV ERHEAD CONDUIT R N 2361844 E 275135.00 E 275073.96 ° E 275201.76 Z BUILDINGN STEEL DECKING \ J (2)4 PIPES &STEPS Z J • O STORAGE K.B.U. 41 -7X BUILDING NO. e INSULATED PIPING • K.U. 61 20.88 N 2361770.88 # \ U K.D.U. 4 E 275191.03 E 275251.24 w SITE EMERGENCY 8 ° 0 PIPE 6 PIPE GOES N 2361742 • / SHUT DOWN SWITCH DEAD ENDS UNDERGROUND E 275108.29 • TO 14 -6 K.D.U. 2 K.U. 24 -5 RD 275 N 2361661.40 N o E27523333.388 275233.38 \ c ■ ° ■. CONCRETE PAD E 275179.. 6 .°- • • O.H.E. - r (FUTURE COMPRESSOR BUILDING) 16.0' WUNCTI ON • •E ® / __ I � /9.0• /GUARD •. •E mO K.U. 11 -8 „. N 2361620.96 111 � E 275167.20 � "''' ^'` K.U. 43 -7 / NORTH ' '" N 2361596.95 --•!w- E 275131.38 �6 ELECTRIC PANEL / Ell.' /� R DRILLIN rAECnP / OPFOERATIONS G ELEV. =ea2t // E 2522" 0 VA r \ /11. VE x 6.0' L / 1. BASIS OF HORIZONTAL COORDINATES ARE ALASKA STATE PLANE NAD27 d . / ZONE 4 DETERMINED BY A DIRECT TIE TO USC &GS TRI STA AUDRY HAVING A p PUBLISHED POSITION OF LAT. 60 °30'50.559" N LONG. 151 °16'37.445 "W N:2382045.42 E:269866.75 1 2) BASIS OF VERTICAL DATUM IS MEAN SEA LEVEL. 3) NORTHEAST CORNER SEC. 7 COORDINATE DETERMINED FROM DIRECT SURVEY TIE TO THE TO EXISTING BLM WC FORE NW CORNER SEC. 7 AND SCALE WC ) CORNER SECTIONS 6 & 7 RECOVERED AND NOT THE PROTRACTED SECTION CORNER VALUES. 0 100 200 1 1 1 E 1 FEET MARATHON PROJECT KENAI GAS FIELD PAD 41 -7 REVISION: 3 M IL WELL KDU 9 DATE: 4-18-08 ARA " COMPANY AS -BUILT SURFACE LOCATION DIAGRAM DRAWN BY: MSM THON • NAD27 FOR INFORMATIONAL PURPOSES SCALE 1 N. PROJECT NO. 073141 ONLY BOOK NO. 07 -24 COMM* ENGINEERING /MAPPING /SURVEYING /TESTING LOCATION � "�'�' P.O. BOX 468 SOLDOTNA, AK. 99669 SHEET VOICE: (907)283-4216 FAX: (907)283 -3265 EMAIL: G.COM S7 T4N R11 W SEWARD MERIDIAN, ALASKA 1 OF 1 SAM -4218 M AX: 90 ilk 0 a / N 2 2 KU ? KU N W a .�144 - -32 34 -31 . � K DU -- m 1 m F '3 1 N 111 KU 0 1 -6 KU KBU 41 -6 P y 6 KDU 5 21 0 `5 8 21 -6X O 7 6 <PA DU 6 V KBU 22 -6 6 7 S 5 '.U_42-6 Im 1111-i rep in 6 KTU 43 - KBU 8 ' • 6 23X- 6 6 33 -6 K 6 . 1 KU 4 KBU 1 43 -6A KTU 0 . < -6X 5 r 13 -5 A 5 1 @ KTU 6 24 -6H 6 6 . K:, 24 -6R• 3 $ }, -6RD KDU y 5 c 4 6 24 -5 KU S • -U 2• 24 -5RD KDU 2 3 5 W @ n A 1 ^ O A 41 8 v '.. 8 3 ,.1 1 �' /��— 24 -6 3 3 W O .. , •x. \_ -3 KBU 0,1 -8X A KDU 9 Z.i �j 2 b • f 9t�1� .. KDU 5 K. 1 7 1- 2 1 (J A u KBU 1 -7X KU 5 4 3151%D M 11_8 @ V a KTU 6 3 2 BU N 32 -7H .1 ' 7 S • 2 -7 S ` 5 6 3 4 6 KT + 3 -7 6 .4 4 S 7 5 KBU 6 13 -8 KD U KBU @ 4RD D 33 -7 BU 5 43 -12 B . -7 6 9 : -7 1 6 :U 3 -7X 6 S Marathon Oil Company KBU 24- X KU o KBU 14 -8 24 -7 y • KBU 41 -18X , 3 • ` �\ S 11 -17 � W P y_ v � M n, A Beluga /Tyonek PA 17 Kenai Gas Field, Alaska 0.25 mi • 0 TOPO! map printed on 04/16/08 from "MOC_KDU- 9_Map.tpo" 151 0 18.000' W 151 °16.000' W 151 0 14.000' W 151 °12.000' W 151 °10.000' W WGS84 151 °07.000' W 0 r } a t ,- fir r :. ,,' " O rt ° f to sr n. o if ` r i .. `13 ( T _ } 1 ° -7 �, ` 24 ° ` ,' d 4 < - .*, ::ter i .! T , . . = Gas Bravkl ., P A d 30 �.. I 1 �'s ,, / i d _..., -y ; � .- . 13 TIN( r '� z o p p r - / :. I _( o Kali*lns NCI, to.. ti I � B 6i :C p Frio S +. Road 1 i / • -� p� NI .1d I fa t,...4., ▪ I Pad34- 31(Marathon Office ! - -- � 43 '` 2 1 ? V __i 4 L a ndi rmg ,,. 11 , ° «, Stops t %,___21.21„ _ c _dle __.__ °a __�__ z - 7; to Fame e 7 _ Y �� 1 ta } z o .(; ( i ' I N_�I GAS rllLI) C ' Gnv et K ° o o % m tk 1 6 5 . 4 � Pits ti �, o r ° M S ; .,.1.. , I fl y + II . O LD q �� Gas Wes L �, NI ( 11 * Yom- 1 Fad is -a (hia t ve) 6,-`,,,,,_, I Fad 14 C+" - r I ;Cv i d.. FrPJ� R-ad I I Pad 41 -7 (Project Location) I E Landing. " r Z • a trip- z S ° a 1 . .i g r, +J O O 9F' j }F. 1 1 �}, O r ! i Fada -Ls " •" 1 � T '1.3 , d E r z 1+ i y s•J r, ' e 14 i 1 ft o o e y , Giffc Lo ° . ` Ga$ WO o O i Fad 4a -1 (ht+uidar,dei) •7 � ✓ `lsYf01 , , r i " _ _ •ate . . ° , ..- 3 i r•x r ., r i. " , " e`�= _c = - -_ - cal tt � . 9G -- - 1� i i /j r - _ - _ r '" v�' ' - f- Map created with TOPO!O ©2006 National Geographic 151°18.000' i � i �� 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 NATIONAL MN 0.0 0.5 1. 1. miles 19° GEOGRAPHIC I ,' ,H I I i , I , i� il l l i i , l i i f , 0.0 0.5 1.0 1.5 2.0 2.5 km 04/16/08 t ! T . ' �- MI �1- 11- *1 V I w .•,.- , , M ., n ` r CI . : X3 1V3 iiiii 110".o1 7 I a ! PI I I z ' 0 CCLu 0 % 6 x :. O n. l ii. CI 11111 lift dil I le ,o 4 I In II -'I /2 ,0*. r — 111111Li . x r ill .. • 1 11 t . L J f' �� V 1 b vHS HMQ _J ` ''-- "� —L- J -- r r It r 1 I j i t1 V X 3 V .. 1 1 p 1 E :Ir. ea � 1 V LIMNS H ZiQ 1 s,,,, 0 0 M M ritil ARATHON Oil Company HUGH L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KDU 9 ; ARATIIVH Field: Kenai Gas Field (NAD83) Well: KDU 9 iii i L'r Facility: Pad 41 -7 Wellbore: KDU 9 Plot reference wellpath is KDU #9 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 23- May -08 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Pad 41 -7 1415937.350 2361755.090 60 °27'32.188 "N 151 0 14'37.059 "W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude slot #KDU 9 - 162.84 - 1056.11 1414878.400 2361612.230 60 °27'30.584 "N 151 0 14'58.119 "W Glacier #1 (RKB) to Mud line (Facility: Pad 41 -7) 87ft Mean Sea Level to Mud line (Facility: Pad 41 -7) Oft Glacier #1 (RKB) to Mean Sea Level 87ft Well Profile Data Design Comment MD (ft) Inc ( Az ( TVD (ft) Local N (ft) Local E (ft) DLS ( °/100ft) VS (ft) RKB 87' 0.00 0.000 239.037 0.00 0.00 0.00 0.00 0.00 KOP 500.00 0.000 239.037 500.00 0.00 _ 0.00 0.00 0.00 End of Build 1631.46 33.944 239.037 1566.43 - 167.45 _ - 279.09 3.00 325.47 Begin Angle Drop 2636.70 33.944 239.037 2400.36 - 456.23 - 760.41 0.00 886.77 End of Drop 4333.89 0.000 239.037 4000.00 - 707.40 - 1179.05 2.00 1374.98 Base Upper Beluga 5630.89 0.000 239.037 5297.00 _ - 707.40 - 1179.05 0.00 1374.98 TD 9768.89 0.000 239.037 9435.00 - 707.40 - 1179.05 0.00 1374.98 Targets Name MD (ft) ND (ft) Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude KDU9 Base UpperBeluga(NAD83) 16- May -08 5630.89 5297.00 - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617"N 151 °15'21.630 "W KDU9 Tyonek D Snd(NAD83) 16-May-08 8687.00 - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151°15'21.630"W KDU9 TD (NAD83) 16- 9435.00 - 707.40 - 1179.05 1413686.20 2360927.36 60 ° 27'23.617 "N 151°15'21.630"W 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 20" Conductor 0.00 120.00 120.00 0.00 120.00 0.00 0.00 0.00 0.00 KDU 9 16" Open Hole 0.00 1650.00 1650.00 0.00 1581.81 0.00 0.00 - 172.77 - 287.97 KDU 9 13 3/8" Casing Surface 0.00 1650.00 1650.00 0.00 1581.81 0.00 _ 0.00 - 172.77 - 287.97 KDU 9 12 1/4" Open Hole 1650.00 5630.89 3980.89 1581.81 _ 5297.00 - 172.77 - 287.97 - 707.40 - 1179.05 KDU 9 9.625in Casing Intermediate 0.00 5630.89 5630.89 0.00 5297.00 0.00 0.00 - 707.40 - 1179.05 KDU 9 8 1/2" Open Hole 5630.89 9000.89 3370.00 5297.00 _ 8667.00 - 707.40 - 1179.05 - 707.40 - 1179.05 KDU 9 7" Liner 5430.89 9000.89 3570.00 5097.00 8667.00 - 707.40 _ - 1179.05 - 707.40 - 1179.05 KDU 9 6.125in Open Hole 9000.89 9768.89 768.00 8667.00 9435.00 _ - 707.40 - 1179.05 - 707.40 - 1179.05 KDU 9 4 1/2" Liner 8800.89 9768.89 968.00 8467.00 9435.00 - 707.40 - 1179.05 - 707.40 - 1179.05 KDU 9 MIATHON Oil Compaq sa Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KDU 9 111110111E MARATHON Field: Kenai Gas Field (NAD83) Well: KDU 9 INTEQ Facility: Pad 41 -7 Wellbore: KDU 9 Plot reference wellpath is KDU #9 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 23- May -08 Scale 1 inch -300 f1 Easting (ft) -1500 -1350 -1200 -1050 -900 -750 -600 -450 -300 -150 0 i 1 1 1 1 1 1 r 1 1 1 1 slot #KDU 9 — o -750 5 M N 13 3/8" Casing Surface'- — -150 ' 11 0 '' d \ K 08 ' Conductor :: KOP — -300 750 9.00° 0 18.00° o 3.00 ° /100ft — -450 27.00° 1500 ' nd of Build 13 3/8" Casing Surface 9 5/8" Casing Intermediate — -600 4 1/2" Liner 2250 Begin Angle Drop 33.94° o d 27.88° k + — -750 KDU9 Tyonek D Snd(NAD83) 16- May -08 3000 21.48° " KDU9 Base Upper Beluga(NAD83) 16 -May -08 2.00 ° /100ft KDU9 TD (NAD83) 16- May -08 15.08° o — -900 Sterling A8 9.08° o 3750 C 3.08° 0 End of Drop 5 — -1050 a a) n 4500 U Beluga E a) > a) 5250 9 5/8" Casing Intermediate , Base Upper Beluga _ KDU9 Base Upper Beluga Middle Beluga (NAD83) 16- May -08 6000 6750 Tyonek 7500 Tyonek 80 -8 Coal 8250 Tyonek 86 -2 Sand Tyonek 84 -6 Sand KDU9 Tyonek D Snd Tyonek 01 J L 7 " Liner (NAD83) 16- May-08 Tyonek D2 9000 Tyonek D5 41/2 "Liner KDU9 TD 9750 (NAD83) 16- May-08 KDU 9 -750 0 750 1500 2250 3000 Vertical Section (ft) Scale 1 inch =1500ft 47irnn 71c104° with rnfprnncp n nn N n 00 F Planned Wellpath Geographic Report Report Generated 23 -May -08 at 07:16:36 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 0.999958 Reference _... . Field Kenai Gas Field (NAD83) Horizontal Point Slot _ Facility Pad 41 -7 Vertical Reference Point - -- Glacier #1 (RKB) Slot slot #KDU 9 MD Reference Point Glacier #1 (RKB) Well KDU 9 Field Vertical Reference Mean Sea Level Wellbore KDU 9 Glacier #1 (RKB) to Facility Vertical Datum 87.00 ft We apath KDU #9 Version #3 Glacier #1 (RKB) to Mean Sea Level 87.00 ft Wellbore Last Revised 04 /16/2008 Facilit Vertical Datum to Mud Line Facilit 0.00 ft Sidetrack from (none) Section •rigin X E 0.00 ft User Jonethoh Se .n Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 239.04° Local North Local East Grid East _ - Grid North Latitude Longitude [ft] [ft] [IISft] (USftI Slot Location - 162.84 - 1056.11 1414878.40 2361612.23 _ 60 °27'30.584 "N 151 °14'58.119 "W _ Facility Reference Pt u, -$ d-' „ . 4 ° x, : - 1415937.35 236175509 60 °27'32.188 "N 151 °14'37.059 "W Field Reference Pt Y 4; , rf , a _ 1410937.15 2361824.52 60 °27'31.931 "N 151 °1616.783 "W .: coon na es are conve e. o ' r using Corpscon 6.0.1 (US Army Corps of Engineers ' TVD from MD Inclination Azimuth 1 VD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ftl 11 Cl tit] [ftl [ft' [ft] [ft] [ft) [ft] [ft] [ 1 [°[loeft] [ [ft] - 0.00 0.00 239.04 0.00 -87.00 0.00 0.00 1414878.40 2361612.23 274858.258 2361850.774 60 °27'30.584 "N 151 °14'58.119"W 0.00 0.00 0.00 0.00 0.00 100.00 0.00 239.04 100.00 13.00 0.00 0.00 1414878.40 2361612.23 274858.258 2361850.774 60 °27'30.584 "N 151 °14'58.119"W 0.00 0.00 0.00 0.00 0.00 200.00 0.00 239.04 200.00 113.00 0.00 0.00 1414878.40 2361612.23 274858.258 2361850.774 60 °27'30.584 "N 151 °14'58.119"W 0.00 0.00 0.00 0.00 0.00 300.00 0.00 239.04 300.00 213.00 0.00 0.00 1414878.40 236161223 274858.258 2361850.774 60 °27'30.584 "N 151 °14'58.119 "W 0.00 0.00 0.00 0.00 0.00 400.00 0.00 239.04 400.00 313.00 0.00 0.00 1414878.40 2361612.23 274858.258 2361850.774 60 °27'30.584 "N 151 °14'58.119"W 0.00 0.00 0.00 0.00 0.00 500.00 0.00 239.04 500.00 413.00 0.00 0.00 1414878.40 2361612.23 274858.258 2361850.774 60 °27'30.584 "N 151 °14'58.119"W 0.00 - 120.96 0.00 0.00 0.00 600.00 3.00 239.04 599.95 512.95 -1.35 -2.24 1414876.13 2361610.93 274855.988 2361849.474 60 °27'30.571 "N 151 °14'58.164 "W 3.00 0.00 3.00 0.00 2.62 700.00 6.00 239.04 699.63 612.63 -5.38 -8.97 1414869.33 2361607.02 274849.188 2361845.565 60 °27'30.531 "N 151 °14'58.298"W 3.00 0.00 3.00 0.00 10.46 800.00 9.00 239.04 798.77 711.77 -12.10 -20.16 1414858.01 2361600.52 274837.867 2361839.065 60 °27'30.465"N 151 °14'58.522"W 3.00 0.00 3.00 0.00 23.51 900.00 12.00 239.04 897.08 810.08 -21.47 -35.79 1414842.21 2361591.44 274822.067 2361829.986 60 °27'30.372 "N 151 °14'58.833'W 3.00 0.00 3.00 0.00 41.74 1000.00 15.00 239.04 994.31 907.31 -33.48 -55.80 1414821.97 2361579.82 274801.826 2361818.367 60 °27'3025414 151 °14'59.232"W 3.00 0.00 3.00 0.00 65.08 1100.00 18.00 239.04 1090.18 1003.18 - 48.09 -80.16 1414797.35 2361565.67 274777.206 2361804.218 60 °27'30.110 "N 151 °14'59.718"W 3.00 0.00 3.00 0.00 93.48 1200.00 21.00 239.04 1184.43 1097.43 -6526 - 108.78 1414768.41 2361549.05 274748.265 2361787.599 60 °2729.941 "N 151 °15'00.289'W 3.00 0.00 3.00 0.00 126.85 1300.00 24.00 239.04 1276.81 1189.81 -84.95 - 141.59 1414735.23 2361529.99 274715.084 2361768.54 60 °2729.747 "N 151 °15'00.943"W 3.00 0.00 3.00 0.00 165.12 1400.00 27.00 239.04 1367.06 1280.06 - 107.10 - 178.50 1414697.91 2361508.55 274677.763 2361747.102 60 °2729.529 "N 151 °15'01.679"W 3.00 0.00 3.00 0.00 208.16 1500.00 30.00 239.04 1454.93 1367.93 - 131.64 - 219.41 1414656.54 2361484.78 274636.392 2361723.334 60 °27'29.287 "N 151 °15'02.495"W 3.00 0.00 3.00 0.00 255.87 1600.00 33.00 239.04 1540.18 1453.18 - 158.52 - 26421 141461124 2361458.76 274591.091 2361697.316 60 °27'29.023 "N 151 °15'03.388"W 3.00 0.00 3.00 0.00 308.12 1631.46 33.94 239.04 1566.43 1479.43 - 167.45 - 279.09 141459620 2361450.12 274576.05 2361688.676 60 °2728.935 "N 151 °1603.685"W 3.00 0.00 3.00 0.00 325.47 1700.00 33.94 239.04 1623.29 1536.29 - 187.14 - 311.91 1414563.01 2361431.05 274542.859 2361669.608 60 °27'28.741 "N 151 °15'04.339W 0.00 0.00 0.00 0.00 363.74 1800.00 33.94 239.04 170624 1619.24 - 215.86 - 359.79 1414514.60 236140324 274494.448 2361641.8 60 °2728.458 "N 151 °15'05.294"W 0.00 0.00 0.00 0.00 419.58 1900.00 33.94 239.04 178920 170220 - 244.59 -407.67 1414466.18 2361375.43 274446.027 2361613.992 60 °2728.175 "N 151 °15'06.249"W 0.00 0.00 0.00 0.00 475.41 2000.00 33.94 239.04 1872.16 1785.16 - 273.32 -455.55 1414417.77 2361347.62 274397.616 2361586.184 60 °2T27.892 °N 151 °15'07.203'W 0.00 0.00 0.00 0.00 53125 2100.00 33.94 239.04 1955.12 1868.12 -302.05 - 503.43 1414369.35 2361319.89 274349.194 2361558.367 60 °2T27.609"N 151 °15'08.158"W 0.00 0.00 0.00 0.00 587.09 2200.00 33.94 239.04 2038.08 1951.08 - 330.77 - 551.31 1414320.93 2361291.99 274300.771 2361530.562 60 °2T27.326 "N 151 °15'09.113"W 0.00 0.00 0.00 0.00 642.93 2300.00 33.94 239.04 2121.04 2034.04 - 359.50 59920 1414272.52 2361264.18 274252.358 2361502.757 60 °27'27.043 "N 151 °1510.068'W 0.00 0.00 0.00 0.00 698.77 2400.00 33.94 239.04 2204.00 2117.00 - 388.23 -647.08 1414224.10 2361236.36 274203.935 2361474.942 60 °27'26.760 "N 15195'11.022"W 0.00 0.00 0.00 0.00 754.61 2500.00 33.94 239.04 2286.95 2199.95 -416.96 - 694.96 1414175.69 2361208.55 274155.522 2361447.137 60 °2T26.477 "N 151 °1511.977'W 0.00 0.00 0.00 0.00 810.44 2600.00 33.94 239.04 2369.91 2282.91 - 445.68 - 742.84 141412727 2361180.74 274107.1 2361419.332 60 °2T26.195 "N 151 °15'12.932"W 0.00 0.00 0.00 0.00 86628 2636.70 33.94 239.04 2400.36 2313.36 - 456.23 - 760.41 1414109.50 2361170.53 274089.328 2361409.124 60 °27'26.091 "N 151 °1513.282"W 0.00 - 180.00 0.00 0.00 886.77 2700.00 32.68 239.04 2453.26 236626 - 474.11 - 790.22 1414079.36 2361153.22 274059.187 2361391.818 60 °27'25.915 "N 151 9513.877"W 2.00 180.00 -2.00 0.00 921.54 • 2800.00 30.68 239.04 2538.35 2451.35 - 501.13 -83525 1414033.83 2361127.06 274013.654 2361365.662 60 ° 27'25.648 "N 151 °15'14.775"W 2.00 180.00 -2.00 0.00 974.05 2900.00 28.68 239.04 2625.23 253823 - 526.60 - 877.70 1413990.90 2361102.40 273970.721 2361341.007 60 °2725.398 "N 151 °15'15.621 "W 2.00 180.00 -2.00 0.00 1023.56 3000.00 26.68 239.04 2713.78 2626.78 - 550.50 - 917.53 1413950.63 236107926 273930.449 2361317.871 60 °27'25.162 "N 151 °15'16.415"W 2.00 180.00 -2.00 0.00 1070.01 I 3100.00 24.68 239.04 2803.90 2716.90 - 572.79 - 954.69 1413913.06 2361057.68 - 273892.877 2361296.295 60 °27'24.943 "N 151 °1517.156"W 2.00 180.00 -2.00 0.00 1113.33 3200.00 22.68 239.04 2895.48 2808.48 - 593.45 - 989.12 141387824 2361037.68 273858.055 2361276.299 60 °2724.739 "N 151 °1517.843"W 2.00 180.00 -2.00 0.00 1153.49 3300.00 20.68 239.04 2988.40 2901.40 -612.45 - 1020.80 141384621 2361019.28 273826.023 2361257.903 60 °27'24.552 "N 151 °15'18.474"W 2.00 180.00 -2.00 0.00 1190.43 3400.00 18.68 - 239.04 3082.56 2995.56 -629.77 - 1049.67 1413817.02 2361002.51 273796.831 2361241.136 60 °27'24.381"N 151 °1519.050'W 2.00 180.00 -2.00 0.00 1224.10 3500.00 16.68 239.04 3177.83 3090.83 - 645.40 - 1075.71 1413790.69 2360987.39 273770.499 2361226.019 60 °2T24.228 "N 151 °15'19.569"W 2.00 180.00 -2.00 0.00 1254.47 3600.00 14.68 239.04 3274.11 3187.11 - - 659.30 - 1098.88 141376726 2360973.93 273747.068 2361212.561 60 °2724.091 "N 151 °15'20.031"W 2.00 180.00 -2.00 0.00 1281.49 3700.00 12.68 239.04 3371.27 328427 - 671.46 - 1119.15 1413746.76 2360962.15 273726.567 2361200.783 60 °2723.971 "N 151 °1520.435'W 2.00 - 180.00 -2.00 0.00 1305.13 3800.00 10.68 239.04 3469.19 3382.19 - 681.88 - 1136.51 141372921 2360952.07 273709.016 2361190.705 60 °2723.868 "N 151 °1520.781'W 2.00 180.00 -2.00 0.00 1325.37 3899.23 8.69 239.04 3567.00 3480.00 - 690.46 - 1150.82 1413714.73 2360943.75 273694.535 2361182.387 60 °27'23.784 "N 151°1521.067'W 2.00 - 180.00 -2.00 0.00 1342.06 Sterling A8 3900.00 8.68 239.04 3567.76 3480.76 - 690.52 - 1150.92 1413714.63 2360943.70 273694.435 2361182.337 60 °27'23.783 "N 151 °1521.069"W 2.00 - 180.00 -2.00 0.00 1342.18 4000.00 6.68 239.04 3666.86 3579.86 -697.40 - 1162.38 1413703.05 2360937.04 273682.854 2361175.678 60 ° 2T23.715 "N 151 °15'21297'W 2.00 180.00 -2.00 0.00 1355.54 4100.00 4.68 239.04 3766.37 3679.37 - 702.49 - 1170.86 1413694.47 2360932.11 273674.274 2361170.749 60 °2T23.665°N 151 °1521.466"W 2.00 180.00 -2.00 0.00 1365.43 4200.00 2.68 239.04 3866.16 3779.16 - 705.79 - 1176.36 1413688.91 2360928.92 273668.713 2361167.56 60 °2T23.633"N 151 9521.576"W 2.00 180.00 -2.00 0.00 1371.85 4300.00 0.68 239.04 3966.11 3879.11 - 70729 - 1178.88 1413686.37 2360927.46 273666.173 2361166.1 60 ° 2723.618 "N 151 °1521.626"W 2.00 180.00 -2.00 0.00 1374.78 4333.89 0.00 239.04 4000.00 3913.00 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2723.617"N 151 °15'21.630 "W 2.00 0.00 -2.00 0.00 1374.98 4400.00 0.00 239.04 4066.11 3979.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °27'23.617"N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 4500.00 0.00 239.04 4166.11 4079.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2723.617 "N - 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 4600.00 0.00 239.04 4266.11 4179.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °27'23.617"N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 4700.00 0.00 239.04 4366.11 4279.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 27'23.617 "N 151 ° 1521.630"W 0.00 0.00 0.00 0.00 1374.98 4800.00 0.00 239.04 4466.11 4379.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °27'23.617"4 151 °15'21.630"W 0.00 0.00 0.00 0.00 1374.98 4900.00 0.00 239.04 4566.11 4479.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2723.617 "N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 4988.89 0.00 239.04 4655.00 4568.00 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2723.617 "N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 Beluga 5000.00 0.00 239.04 4666.11 4579.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °2723.617 "N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 5100.00 0.00 ' 239.04 4766.11 4679.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2723.617"N 151 °15'21.630"W 0.00 0.00 0.00 0.00 1374.98 5200.00 0.00 239.04 4866.11 4779.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2723.617 "N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 Planned Wellpath Geographic Report Report Generated 23 -May -08 at 07:16:36 - - - - -- Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company - - - - -- North Reference kiZMIMMIIIIIIMINMEIMMIMMINE Cook Inlet, Alaska (Kenai Penninsula) Scale - 0.999958 Field Kenai Gas Field (NAD83) ----_ Horizontal Reference Pont - Facility Pad 41 -7 Vertical Reference Point Slot slot #KDU 9 MD Reference Point Glacier #1 (RKB) Well KDU 9 Field Vertical -- -- Mean Sea Level G (RKB) KDU 9 Glacier #1 (RKB) B) Facility to Vertical Datum 87.00 ft IIIIIIIIIIIMMIII Wellpath KDU #9 Version #3 - - -- -- k . (R..') • :. :- - 87.00ft - Wellbore Last Revised 04/16/2008 - - - - -- Facity il VerticaI DatuR't to Mud Line (Facilit ) 0.00 ft Sidetrack from (none) Section Ori ig n X E 0.00 ft User Jonethoh Section t)ri in Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 239.04° - - -- - -- Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] -- - Slot Location - 162.84 r 60 °27'30.584 "N Facility Reference Pt %' 442 iii _: `., shl 2361755.09 60 °27'32.188 "N 151 °14'37.059"W Field Reference Pt -s 2361824.52 60 °27'31.931 "N 151 °1616.783"W lyev33.1"4 rrmsrn rr1=1,27rarm :L1•Y44tf1117:1 Ti [TTTf3f. . 1 army orps • ngineers; -- - - - -- TVD from _. MD Inclination Azimuth TVD [Id Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments rticiffir [ft] [1 C] [ft] [ft] (ft] [ft] [ft] [ft] [ft] [ft] ......_. 5300.00 0.00 239.04 4966.11 4879.11 - 707.40 - 1179.05 1413686.20 236092736 273666.003 2361166 60 ° 27'23.61TN 151 °15'21.630'W 0.00 0.00 0.00 0.00 1374.98 5400.00 0.00 239.04 5066.11 4979.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 6027'23.617"N 151 °15'21.630 "W 0.00 0.00 0.00 0.00 1374.98 5500.00 0.00 239.04 5166.11 5079.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °27'23.617 "N 151 ° 15'21.630"W 0.00 0.00 0.00 0.00 1374.98 5600.00 0.00 239.04 5266.11 5179.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 27'23.617 "N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 5630.89 0.00 239.04 5297.00 5210.00 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2T23.617 "N 151 ° 15'21.630"W 0.00 0.00 0.00 0.00 1374.98 Base Up.er Beluga 5645.89 0.00 239.04 5312.00 5225.00 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °2T23.61TN 1511621.630"W 0.00 0.00 0.00 0.00 1374.98 Middle Beluga 5700.00 0.00 239.04 5366.11 5279.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 2T23.61TN 15115'21.630'W 0.00 0.00 0.00 0.00 1374.98 5800.00 0.00 239.04 5466.11 5379.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 27'23.617 "N 151 °15'21.630"W 0.00 0.00 0.00 0.00 1374.98 5900.00 0.00 239.04 5566.11 5479.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °2T23.61TN 151 ° 15'21.636W 0.00 0.00 0.00 0.00 1374.98 6000.00 0.00 239.04 5666.11 5579.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °27'23.617"N 1511521.630'W 0.00 0.00 0.00 0.00 1374.98 6100.00 0.00 239.04 5766.11 5679.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2723.617 N 1511521.630"W 0.00 0.00 0.00 0.00 1374.98 6200.00 0.00 239.04 5866.11 5779.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °2T23.61TN 151 ° 1521.630"W 0.00 0.00 0.00 0.00 1374.98 6300.00 0.00 239.04 5966.11 5879.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 2723.617 N 151 ° 1621.630"W 0.00 0.00 0.00 0.00 1374.98 6400.00 0.00 239.04 6066.11 5979.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 27'23.61TN 151 °15'21.630"W 0.00 0.00 0.00 0.00 1374.98 6500.00 0.00 239.04 6166.11 6079.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2T23.617"N 151 ° 15'21.630"W 0.00 0.00 0.00 0.00 1374.98 6600.00 0.00 239.04 6266.11 6179.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 27'23.617"N 151 °15'21.630"W 0.00 0.00 0.00 0.00 1374.98 6700.00 0.00 239.04 6366.11 6279.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2723.617 "N 1511621.630"W 0.00 0.00 0.00 0.00 1374.98 6800.00 0.00 239.04 6466.11 6379.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2723.617 "N 151 ° 1621.630"W 0.00 0.00 0.00 0.00 1374.98 6900.00 0.00 239.04 6566.11 6479.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2T23.617N 151 °15'21.630"W 0.00 0.00 0.00 0.00 1374.98 7000.00 0.00 239.04 6666.11 6579.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 27'23.617 "N 15115'21.630"W 0.00 0.00 0.00 0.00 1374.98 7100.00 0.00 239.04 6766.11 6679.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °27'23.617"N 1511521.630"W 0.00 0.00 0.00 0.00 1374.98 7200.00 0.00 239.04 6866.11 6779.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 27'23.617 N 151 ° 1521.630"W 0.00 0.00 0.00 0.00 1374.98 7300.00 0.00 239.04 6966.11 6879.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2723.617"N 15195'21.630"W 0.00 0.00 0.00 0.00 1374.98 7400.00 0.00 239.04 7066.11 6979.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °2723.617 "N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 7495.89 0.00 239.04 7162.00 7075.00 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °27'23.617 "N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 Tyonek 7500.00 0.00 239.04 7166.11 7079.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 "N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 7600.00 0.00 239.04 7266.11 7179.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2T23.61TN 151 ° 1621.630"W 0.00 0.00 0.00 0.00 1374.98 7700.00 0.00 239.04 7366.11 7279.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 2723.617 "N 15115'21.630"W 0.00 0.00 0.00 0.00 1374.98 7800.00 0.00 239.04 7466.11 7379.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 27'23.617' N 151°15'21.630"W 0.00 0.00 0.00 0.00 1374.98 7900.00 0.00 239.04 7566.11 7479.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 2T23.617"N 151 ° 15'21.630'W 0.00 0.00 0.00 0.00 1374.98 8000.00 0.00 239.04 7666.11 7579.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °27'23.617 N 1519521.630"W 0.00 0.00 0.00 0.00 1374.98 8100.00 0.00 239.04 7766.11 7679.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 2723.617"N 151 9521.630 "W 0.00 0.00 0.00 0.00 1374.98 8200.00 0.00 239.04 7866.11 7779.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °27'23.617 "N 151 ° 1521.630"W 0.00 0.00 0.00 0.00 1374.98 8300.00 0.00 239.04 7966.11 7879.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °27'23.617 "N 1519521.630"W 0.00 0.00 0.00 0.00 1374.98 8370.89 0.00 239.04 8037.00 7950.00 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °2723.617"N 151 ° 1521.630'W 0.00 0.00 0.00 0.00 1374.98 Tyonek 80 -8 Coal 8400.00 0.00 239.04 8066.11 7979.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 27'23.617 "N 1519521.630"W 0.00 0.00 0.00 0.00 1374.98 8500.00 0.00 239.04 8166.11 8079.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 1519521.630"W 0.00 0.00 0.00 0.00 1374.98 8600.00 0.00 239.04 8266.11 8179.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 2723.617"N 151 °1521.630'W 0.00 0.00 0.00 0.00 1374.98 8700.00 0.00 239.04 8366.11 8279.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 27'23.617"N 151 ° 15'21.630"W 0.00 0.00 0.00 0.00 1374.98 8709.89 0.00 239.04 8376.00 8289.00 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °27'23.617 "N 151 °1521.630"W 0.00 0.00 0.00 0.00 1374.98 T onek 84-6 Sand 8770.89 0.00 239.04 8437.00 8350.00 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 27'23.617 "N 1519521.630"W 0.00 0.00 0.00 0.00 1374.98 Tyonek 86-2 Sand 8800.00 0.00 239.04 8466.11 8379.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °2723.617"N 1519621.630"W 0.00 0.00 0.00 0.00 1374.98 8900.00 0.00 239.04 8566.11 8479.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °27'23.617'N 1519521.630"W 0.00 0.00 0.00 0.00 1374.98 ' 9000.00 0.00 239.04 8666.11 8579.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 ° 27'23.617 "N 151 ° 15'21.630"W 0.00 0.00 0.00 0.00 1374.98 9000.89 0.00 239.04 8667.00 8580.00 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2T23.617 "N 1519521.630"W 0.00 0.00 0.00 0.00 1374.98 Tyonek D1 9100.00 0.00 239.04 8766.11 8679.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 27'23.617 N 151 °15'21.630"W 0.00 0.00 0.00 0.00 1374.98 9115.89 0.00 239.04 8782.00 8695.00 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2723.617 "N 151 ° 15'21.630"W 0.00 0.00 0.00 0.00 1374.98 Tyonek D2 9200.00 0.00 239.04 8866.11 8779.11 - 707.40 - 1179.05 1413686.20 2360927.36 273666.003 2361166 60 °2723.617"N 151 ° 1521.630"W 0.00 0.00 0.00 0.00 1374.98 9300.00 0.00 239.04 6966.11 8879.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2723.617 "N 151 °1621.630"W 0.00 0.00 0.00 0.00 1374.98 9400.00 0.00 239.04 9066.11 8979.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 ° 2723.617 "N 151 ° 1521.630"W 0.00 0.00 0.00 0.00 1374.98 9500.00 0.00 239.04 9166.11 9079.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2723.617 "N 151 ° 15'21.630"W 0.00 0.00 0.00 0.00 1374.98 9600.00 0.00 239.04 9266.11 9179.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60`27'23.617"N 151 °15'21.630"W 0.00 0.00 0.00 0.00 1374.98 9700.00 0.00 239.04 9366.11 9279.11 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 "2T23.61714 151 ° 15'21.630"W 0.00 0.00 0.00 0.00 1374.98 9713.89 0.00 239.04 9380.00 9293.00 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °27'23.617 "N 15195'21.630"W 0.00 0.00 0.00 0.00 1374.98 T onek D5 9768.89 0.00 239.04 9435.00 9348.00 - 707.40 - 1179.05 141368620 2360927.36 273666.003 2361166 60 °2723.617N 1519521.630'W 0.00 0.00 0.00 0.00 1374.98 Planned Wellpath Report BAKER KDU #9 Version #3 HUGHES MARATHON Page 1 of 7 INTEQ REFERENCE WELL:PATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KDU 9 1 !Area Cook Inlet, Alaska (Kenai Penninsula) Well KDU 9 Field Kenai Gas Field (NAD83) Wellbore KDU 9 r - Facility Pad 41 -7 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 0.999958 Report Generated 22- May -08 at 13:59:09 !Convergence at slot 1.09° West Database /Source file WA /KDU WELLPATH LOCATION Local coordinates Grid coordinates A/4J0 13 6 .To . o$ Geographic coordinates 1 North ft East [ ft Eastin U North[ ft] East[ ft] g[ Sft] Northing[USft] Latitude Longitude Slot Location - 162.83 - 1056.11 1414878.40 2361612.23 60 °27'30.584 "N 151 0 14'58.119 "W r Facility Reference Pt 1415937.35 2361755.09 60 °27'32.188 "N 151 °14'37.059 "W ' Reference Pt 1410937.15 2361824.52 60 °2731.931 "N 151°16'16.783"W WELLPATI1 DATUM Calculation method Minimum curvature Glacier #1 (RKB) to Facility Vertical Datum 87.00ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 87.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Lin e (Facility) 0.00ft IMD Reference Pt Glacier #1 (RKB) Section Origin I 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth 239.04° Viii) Z 7 «4 FA.C.� CaorcIg X : 17 51, SSS. L51? = .2/36/1856. - 77‘ re (Iprcstet 6 Ai, 4 .3a. 08 Planned Wellpath Report IU BAKER KDU #9 Version #3 HUGHES MARATHON Page 2 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KDU 9 Area Cook Inlet, Alaska (Kenai Penninsula) Well KDU 9 Field Kenai Gas Field (NAD83) Wellbore KDU 9 Facility Pad 41-7 1WELLPATH DATA (113 stations) j = interpolated/extrapolated station MD Course Length Inclination Azimuth TVD Vert Sect North East Grid East Grid North Latitude Longitude DLS Build Rate Turn Rate Comments ._._ [ft [ft , 1 °1 [° [ft] ftl ft [ft sry ft] sry ft [ °/100ft] [ ° /100ft] [ ° /100ft] 0.00 0.00 0.000 239.037 0.00 0.00 0.00 0.00 1414878.40 2361612.23 60 °27'30.584 "N 151°14'58.119'W 0.00 0.00 0.0ORKB 87' 100.00f 100.00 0.001 239.037 100.00 0.00 0.00 0.00 1414878.40 2361612.23 60 °27'30.584 "N 151°14'58.119"W 0.00 0.00 0.00 1 0.000 239.037 200.00 0.00 0.00 0.00 1414878.40 2361612.23 60 °27'30.584 "N 151 °14'58.119 "W' 0.00 0.00. 0.00 100.00 300.001* �" 100.00 0.000 239.037 300.00 0.00 0.00 0.00 1414878 40 2361612.23 60 °27'30.584 "N 151 °14'58.119 "W' 0.00 0.00 0.00 400 OO 500.00 100.00 0.000 239.037 500.00 0.00 0.00 0.00 1414878.40 2361612.23 60°27'30.584"N I 151 ° 14'58.119 "W 0.001 0.00 0.00 OP 1 600.001- 100.00 3.000 239.037 599.95 2.62 -1.351 -2.24 1414876.13 2361610.93 60 °27'30.571 "N' 151°14'58.164"W 3.00 3.00 0.00.. 700.001 100.001 6.000 239.037 699.63 10.46 -5.38 -8.97 1414869.33 2361607.0260 °27'30.531 "N 151°14'58.298"W 3.00 3.00 0.00 1 800.001* 100.00 9.000 239.037 798.77 MEMO -12.10 -20.16 1414858.01 2361600.52 60 °27'30.465 "N 151 °14'58.522 "W 3.00 3.00 0.00 '` 1 4 .. .. 1 v , ' � _ .�.,._, ..W., � _: _:. , , 1000.001- 100.00 15.001 239.037 994.31 65.08 -33.48 - 55.80 1414821.97 2361579.82 60 °27'30.254 "N 151 0 14'59.232 "W 3.00 3.00 0.00 1100.001 100.00 18.000 239.037 1090.18 93.48 -48.09 -80.16 1414797.35 2361565.67 60 °27'30.110 "N 151 °14'59.718 "W ! 3.00 3.00 0.00 1200.001 100.00 21.000 239.037 1184.43 126.85 -65.26 -108.78 1414768.41 2361549.05 60 °27'29.941 "N 151 °15'00.289 "W 1 3.00 3.00 0.00 1300.00j 100.00 - f E 1276.81 165.12 -84.95 -141.59 1414735.23 2361529.99 60°27'29.747"N 151 °15'00.943 "W 3.00 3.00 0.00 0 00 24 000 239 037 1276. I .V . fir, ,d' _ _ 1 - ,:. u' 1 i '.. "�I I . .... .. ,. J�1�� 4� 1 _ �� r v 100.00 30.0 0 239.03 7 1454.93 255 87 131 64 - 219.41 � 1414656.54 23 � � 1500.00 a � � � 29 f 60°27'29.287"N 151 °15'02.495 "W 3.00 3.00 0.00 1600.001 100.00 33.000 239.037 1540.18 308 12 - 158.52 - 264.21 1414611.24 2361458.76 60 °2729.023 "N' 151 °15'03.388 "W 3.00 3.00 0.00 1631.46 31.46 33.944 239.037 1566.43 325.47 - 167.45 -279.09 1414596.20 2361450.121 60 °2728.935 0 N 151 °15'03.685 "W 3.00 3.00 0.O0i End ofBuild 2 239.0371 1623.29 363.74 - 187.14 - 311.91 1414563.01 2361431 05 1 60 °7'28.741 "N 151 °15'04.339 "W 0.00 0.00 0.00 1700 001- 68 54 33 944 Y _ 1900.001 100.00 33.944 239.037 460°27'28.175"N _ 1 B 4 ..'..,....:.,_ .. 1M1:10", ... - -.,. . -.,, .,.�� s Y. I,.: .,. -... �:.. "rl 1,u!! ..,, ,�. ,m,,: ,_�ga. a. se 1. � 1$00. .,.4 ��.,r a�a,.�, 3+944,: _t18�7 . 1 4 „ r . ,,r�,l .. ��" � .s. , ..- .�� ,.,,4 , .__ ,a r Ir m is ('"""""" ,� M 3 9 1.7116.4 ! .'�$,� 2.:15;85 3 ., ��1�� , � e .58, � l � � . ,r, ' 7 1789.20 75.41 407.67 1414466.18 2361375.43 151 15 0 � m � ] 0] 0 - ° 6.249 "W ` 0.00 0.000 1 , 2000.00t 33.944 239.037 1872.16 531.25 - 273.32 - 455.55 1414417.77 2361347.62 60 °2727.892 "N; 151 °15'07.203 "W 0.00 0.00 0.00` 2100.00f 100.00 33.944 239.037 1955.12 587.09 - 302.05 - 503.43 1414369.35 2361319.80 60 °2777.609 "N 151 °15'08.158 "W 1 0.00 0.00 0.00 2200.001 100.00 33.944 239.037 2038.08 642.93 - 330.77 - 551.31 1414320.93 2361291.99 60 °27'27.326 "N 151 °15'09.113 "W 0.00 0.00 0.00! t F,, •, 1 ,. m ... . E „ ,,, 1 ", ,.._ _ _ _...::, r � � �, �,> ,;, tlx: , ' ,.., , ,,... -.,._ - R �, 4„ .N m u., . I i .,.. �� { g .., , ^ns _ �. err � F� r , .,, ", : ,� ' 13 a ,, �3� �u, 9„ �,..I'y I l�r�r�,+��V � '" I ci tl � i .� % � k Y � �, u° ,. _ .. . a .row.,,: •. a �� . ,�I 2400.001- 100.00 1 33.944 239.037 2204.00 754.61 - 388.23 - 647.08 1414224.10 2361236.36 60 °2726.760 "N 1 151 °15'11.022 "W 0.00 0.00 0.00 2500.001- 100.00 1 33.944 239 2286.95 810.44 416.96 : 694.96 1414175.69 2361208.55 60 °27'26.477 "N 151 °15'11.977 "W 0.00 0.00 0.00 2600.001- 100.001 33.944 239.037 2369.91 866.28 - 445.68 - 742.84 1414127.27 2361180.74 60 °27'26.195 "N 151 °15'12.932 "W 0.00 0.00 0.00 2636.70 36.701 33.944 239.037 2400.36 886.77 -456 23 -760.41 1414109.50 2361170.53 60°27'26.091"N 151°15'13.282"W 0.00 0.00 0.00 Begin Angle Drop . �^ u - , mom ^s ^•- �%. :., •-. .: Nl �>d S' S � „I'p: 1 a.. _ �fl"I i e 1 ' =:: I`, i ' 1-h - 700.00 63 30 �8 � , ,�° +� °I "':r, -� ,4 s � '� i�;� "� 7, ,9�]: N o- ,a 1 A I 1 � r ,1M _ .�G '., ,,, ,err :,. , ,,, �VUu. ... :.I ; .. .. :iv a� .. _ 1 _�, � Irf � "r Planned Well path Report p BAKER Mai KDU #9 Version #3 HUGHES MARATHON Page 3 of 7 INTEQ ®- REFERENCE WE1.I,PA111IDENTIC'ICATION Operator MARATHON Oil Company Slot slot #KDU 9 Area Cook Inlet, Alaska (Kenai Penninsula) KDU 9 Field Kenai Gas Field (NAD83) Wellbore KDU 9 ZMIMPad 41-7 WELLPATH DATA (113 stations) ¶ = interpolated /extrapolated station MD Course Length Inclination Azimuth TVD Vert Sect North East Grid East Grid North Latitude Longitude DLS Build Rate Turn Rate Comment [ft] [ft]_ _ ° l ° 1... lftl [ftl ft] ft] sry ft] sry ft °/100ft [ ° /100ft ° /100ft 2800.00f 100.00 30.678 239.0371 2538.35 974.05 - 501.13 - 835.25 1414033.83 2361127.06 60 °27'25.648 "N 151 °15'14.775 "W 2.00 2.01 0.00 100.00 28.678 239.037 2625.23 1023.56 - 526.60 - 877.70 1413990.90 2361102.40 60°27'25.398"N 151 °15'15.621 "W; 2.00 -2.00 0.00 3000.00f- 100.00 26.678 239.037 2713.78 1070.01 - 550.50 - 917.53 1413950.63 2361079.26 60 °27'25.162 "N 151 °15'16.415 "W 2.00 -2.00 0.00 60 06 2361057 - 572.79 -954.69 1413913 ° 151 °15'17156 "W 2.001 -2.00 0608 3100.00 f 100 00 24.678 239.037 2803.90 ' 2361057.68 27 24.943 N lS � 1 i ''"m.:� '�" .^a,� ems i'•'• ( '7 (1 ' ;8. d{ 1 u { 3200.0(1 .. # ��' 6'�� 23,9.1?3'� � 151'_15'17.843"_W O) I l C � 3300.00. 100.00 20.678 239.037 2988.40 119043 - 612.45 - 1020.80 1413846.21 2361019.28 60 °27'24.552 "N 151 °15'18.474 "W 1 2.001 -2.00 0.00) 3400.00t 100.00 18.6781 239.0371 3082.56 1224.10 - 629.77 - 1049.67 1413 2361002.51 60 °27'24.381 "N 151 °15'19.050 "W 2.00 -2.00 0.00. f 3177.83 60°27'24.228"N _ 3500.00 100.00 16.678 239.037 1254.47 -645.40 -1075.71 1413790.69 2360987.39 151°15'19.569"W 2.00 -2.00 0.00 3600.00f 100.00 14.678 239.037 3274.11 1281.49 - - 659.30 - 1098.88 1413767.26 2360973.93 60 °27'24.091 "N 151 °15'20.031 "W 2.00 -2.00 0.00 "3700 4 - � s : , ' " 1 0 f + r X ��x_.: .. __�.�n+� „� � d._ ` o- _,._.._ : _ _ .. '� ' ,.. .._ � �._ �o-m, li.; ��„I ,_41 .- .n��..: �I� °,?'��tl�aa�i { r, ( V �: a_ 3800.00f 100.00 10.678 239.037 3469.19 1325.37 - 681.88 - 1136.51 1413729.21 2360952.07 60 °27'23.868 "N 151°15'20.781''W 2.00 -2.00 0.00 3899.23 f 99.23 8.693 239.037 3567.00 1342.06 Sterling A8 6' - 690.46 - 1150.82 1413714.73 2360943.75 60 °27'23.784 "N 151 °15'21.067 "W 2.00 -2.00 0.O0 -690.52 -1150.92 - 3900.00 0.77 8.678 239.037 3567.76 1342.18 690.52 1150.92: 1413714.63 2360943.70. 60°27'23.783"N 151°15'21.069"W 2.00 -2.00 0.00 '. 4000.00f 100.00 6.678 239.037 3666.86 1355.54 - 697.40 -1162.38 1413703.05 2360937.04 60 °27'23.715 "N 151 °15'21.297 "W 2.00 -2.00 0.00 100.00 2.678 239.037 3866 ( : u , r ; y,� r �,,.,.�. g : i ', -. ./: 7 ' - , a ^��r ; n . '. G� I' m � y p ', I s au & a f 4c'� m i t i `74N, '.. I E .�, d 1 ._ �� '' " �;`_ ' : � ' �� , . ��.+- ^ � ®a�y8,;. � '� � 0 1 ;<` � ail d': , , �� (G �� ? ,d4� � ? N ��'w ,, 4200.00f; _ 1413688.91 '. , 1 -� . .16 1371.85 -705.79 -1176.36 1413688.91 2360928.92; 60°27'23.633"N 151 °15'21.576 "W 2.00 -2.00 0.00 4300.00. 100.00 0.678 239.037 3966.11 1374.78 - 707.29 -1178.88 1413686.37 2360927.46 60 °27'23.618 "N 151 °15'21.626 "W 2.00 -2.00 0.00 4333.89 33.89 0.000 239 .037 4000.00 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 60 027'23.617 "N 1 151°15'21.630"W 2.00 -2.00, 0.00 End of Drop 4400.00. 66.11 0.0001 239.037 4066.11 707 40 1179.05 1413686.20 2360927 3 6 60°27'23.617"N 151 °1 1 5'21.630 "W 0.00 0.00 0.001 , .11 1374 98 � 6 1 , rt ll - ! .,. [I '.: m ,1 - 1 , ,r °(n ,V E q;i; r' ® +s >r=7 ,II, 11C- (.- r Y 9 Q)'1111111 . !~ 450t ©Of ..,... 1 €�(10'{l , it � 10.000 , '3g.07 416.11, ' 1. � "''. ,° ��:�` ,,.;I �..,. �3.. �„� �3',^�.�, �, , L - _ li . �;, ,��, � ,,�,,'.t u :::��„v, .t ��; 101 �,;:r. rte,__ "t•. I 4600.00f 100.00 0.000 239.037 4266.11 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 60°27'23.617"N 151 °1521.630 "W 1 0.00 0.00 0.00 4700.00t 100.00 0.0001 239.0371 4366.111 1374.98 - 707.40 -1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 ; 4800.00f 100.00 0.000 239.037 4466.11 1374.98 - 707.40 - 1179.05 141 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 f 1 -1179.05 . .. 1 4900.00 , 100. 0.000 239.037 4566.11 1374.98 707.40 1413686 20 2360927 36 60°27'23.617"N 151°15'21.630"W 0.00 0.00 0.00 1� �:. iu I ..; .., -.. f I. I._. v. .. �.. �� . ..w , ,» �..1� _... -, wJ „(r, �n w .. 6p, r r � r +, r. w wti"d' lug!:. r., ro. ,. r,a °1b . � �. R a 7 '# I � I s4 9 �,1.� 4lu a .I r ,1� , 4. A, , ��, ,�, I: f a � 17{ .d Ir. .d.. �. �.�1. °�.�,d.. � , , °r �..;. .. _,.� -,..I �QM.. r. m� _.. r r..a, 6��d�maau�"�',�'1�, :c�' c�u�nu y �m'C� �'�§s � 9 60°27'23.617"N 151 ° 15 151 15 ... a . 5000.00t.11111 0.000 239.037 4666.11 1374 98 -707.40 - 1179.05 1413686.20 2360927.36: 60°27'23.617"N 21.630 W 0.00 0.00 0.00 5100.00f 100.00 0.0001 239.0371 4766.11 0 ` '21.630 "W 0.00 0.00 0.00 1 f 1 � 766.11 1374 98 707.40 - 1179.05 1413686.20 2360927.36 6 5200.00f 100.00 0.000 239.037 4866.11 1374.98 _ - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00', 0.00 5300.00. 100.00 0.0001 239.037 4966.11 1374.98 - 707.40 -1179.05 1413686.20 2360927 36 60 °27'23.617 "N 151°15'21.630"W 0.00 0.00 0.00 ,.�.�., rt r ° ,.... ., ..,. .. •._ ,::.. .�. ,,: .,.... - �..:� ®� _./(B -. . �« � � .4 r'r � ,,...;fru mr,'. , � =_�ra .... ... .. ..r ! � t .,; r t ru 5400 �� B� , � _,.:,. � � ., � �. �zL. �" ��'+�'a 9u rPl � �� k �w(. 'Wet , ° .,✓ V 1 a�'.k.rr . �.�.,, .,,. '"4� °�a � - -._� . � I�N�N� h :Pr ➢�I ! • "r..:r r,h '�� Y�I Y �_ U r ��.,a�lr u;��r�ir"r m Planned Wellpath Report BAKER KDU #9 Version #3 HUGHES MARATHON Page 4 of 7 I r rEQ RE;FE:RENCF. WE:I,I IDENTIFICATION - Operator MARATHON Oil Company Slot slot #KDU 9 Area Cook Inlet, Alaska (Kenai Penninsula) KDU 9 Field Kenai Gas Field (NAD83) Wellbore KDU 9 Facility Pad 41-7 WELLPATH DATA (113 stations) j = interpolated /extrapolated station MD Course Length nclination • zimuth TVD Vert Sect North East Grid East Grid North Latitude Longitude DLS : uild Rate Rate Comments [ft ... [ft1.- ...._. N. ° [ft] _ ft] ftl Ift sry ft sry ft °/100ft [ ° /100ft] [ ° /100ft] 5500.00# 100.00 0.000 239.037 5166.11 1374.98 707.40 -1179.05 1413686.20 2360927.36 60°2723.617"N 151°15'21.630"W 0.00 0.00! 0.00 5600.001 100.00 0.000 239.037 5266.11 1374.98 -707.40 -1179.05 1413686.20 2360927.36 60°27'23.617"N 151 °1571.630 "W ` 0.00 0.00 0.00 5630.89 30.89 0.000 239.037 1374.98 - 797.40 -1179.05, 2360927.36 60 ° 27'23 617 "N 3,51'15'2 0.00 0.00 0.00 Base Upper Beluga; Base Upper Beluga r 1179 05 11413686.20 2360927.36 60 °27'23.617 "N 151°15'21.630"W 0.00 0.00jMiddle Beluga .630 "W 0.00 000 �- 1374 98 -707 40 - �� 1 5700, 0 0 f t ".s �< ' , I ,: I ^ .8620 2.10927 w 7 Y, , ""x,,1 00 000 5800.00 100.00 0.000 239.037 5466.11 �' 1374.98 - 707.40 1179.05 1413686.20 2360927.36 60 °27'23.617N 151 °15'21.630 "W 0.00 0.00 0.00 `. 5900.001 100.00 0.000239.037 5566.11 1374.98 - 707.40 1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 6000.001 100.00 0.000 239.037 5666.11 1374.98 - 707.40 -1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 374 98 -707 40 1 6100.00j II 100.00 0.000 239 037 5766 11 1 -1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 u, 4ai l I { ' a,,� �, u. . ,�('^ ® �`.. fi3 < 1FO a a:. "',1a. - ih!a- = rr� .: Y i,. , -1 fr: '. 62 ��. � C � ,a: �.1 a � r �� : l ��_ _ � �� ,µ �� _ � �,� � ��a r�,, h � � d : �� 6300.00 � ' : " .: , il 1 00.00 ,�., � 0.000 231�r �x _, ,.. - .,,M � -a Wr', ! � � � , a i �, 1 - 9.037 5966.11 1374.98.- 707.40 - 1179.05 1413686.20 2360927.36'60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 6400.001 100.00 0.000239.037 6066.11 1374.98 -707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617'N 151 °1521.630 "W 0.00 0.00 0.00 6500.001- 100.00 0.000239.037 6166.11 1374.98 -707.40 -1179.05 1413686.20 360927.36 60°27'23.617"N 151 °15'21.630 "W 0.00 0.00 0.00 '6600.00 100.00 0.000 239.037 6266.11 1374.98 - 707.40 1179.05 1413686.20 2360927.36 60°27'23.617"N 151 °15'21.630 "W 0.00 0.00 0.00 q z 9 [1 �.p� Il rsr g ,'� '. ZA4 'l1`k� .ls� i 6800.001- 100.00 0.000239.037 6466.11 1374.98 . 74.98 - 707.40' - 1179.05 2360927.36 60 °2T23.61TN 151 °15'21.630 "W 0.00 0.00 0.00 6900.001- 100.00 0.000239.037 6566.11 1374.98 -707.40 - 1179.05 1413686.20 360927.36 60 0 27'23.617'N 151 °15'21.630 "W 0.00 0.00 0.00 7000.001- 100.00 0.000 239.037 6666.11 1374.98 - 707.40 - 1179.05' 1413686.20 2360927.36 60°27'23.617"N 151 °15'21.630 "W 1 0.00 0.00 0.00 7100.00 100.00 0.000 239.037 6766.11 1374.98 -707.40 1179.05 1413686.20 2360927.36 60°27'23.617"N 151 °15'21.630 "W 0.00 0.00 0.00 , s F _ r �. .ti w�' � ,fi^ . � d ,v^� : �° s . : '' ,,al ; u, v I r rr � pc err d r. <, d t+a 1�1 a- ,e.l:i i : „ t. .•., ,� s ,.`- I I,:, d 1' d, +x.': a 7300.00 . V'''. ,� _ , fi - �� .: -. ,.r : .,., .,. �.... � Y � _ F�s �...:.,�a �.�dV>l "l�, 100.00 0 000 239.037 3 8 -�. . 8 236 �� 0 �- 6966.11 1 1�� 374 98 -707 40 1179 OS 1413686 20 2360927.36 60 °2723.617 "N 151 °15'21.630 "W 0.00 1 0.00 0.00 7400.001 100.00 0.000 239.037 7066.11 1374.98 - 707.40 -1179.05 1413686.20 360927.36 60 °2723.617 "N 151 0 15'21.630 "W 0.00 0.00 0.00 '7495.89f 95.89 0.000239.037 7162.00 1374.98 -707.40 - 1179.05 1413686.20 2360927.36 60 °2723.617 "N 151 °15'21.630 "W 0.00 0.00 0.01!Tyonek .7500.00 4.11 I 0.000 239.037 7166.11 1374.98 - 707.40 1179.05 1413686.20 2360927.36 60°2723.617"N 151 °15'21.630 "W 0.00 0.00 0.00 _. �t 1 l ,d E t.t6i, �,��..�. ..:- �.s.v,. .:,:. r � -xa.,, ,�, , �:w, �.. , u�. f,.. � , 0 c ,.,,:,.� Way . � � l 7 . 05' .. . v7 � ".,:, .� 1 � ,_ :. �. � , .� ,, . Ol� (� ��_ 1 I + III ., , ,,: �� , r ,,. ... �., I .. .., e., ..' ,. ��a n:, , ,�. .....,,. - �v,. .r;lbl �' S �s� ,,, ..._, � �. ,.. �-: -. � `�-a �I�',_,��_ .,u �- r � -` fi ? Gi u.. !� �;� �0 �1 0 � �, i 17700.001 100.00 0.000 239.037 7366.11 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 7800.001- 100.00 0.000 239.037 7466.11 1374.98 - 707.40 -1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00! 0.00 0 00 790 10 2 100.00 0 000239.037 7566 11 1374.98 1179.05 1413686.20 360927.36 60°27'23.617"N 151 °15'21.630 "W 0.00 0.00 0.00 } .8000.001 100.001 0.000 239.037 7666 1374 -707.40 1179.05 1413686.20 2360927.36 60°27'23.617"N 151°15'21.630"W 0.00 0.00 1.11 .- r cv '�: ,j ,:. ,; a :� r a �. , as. xs ;w +,�.� -�-� �� .: :,, �, � y rc, ^ ^,� r . ...,. r $rr „r a3 v, , -.: W . ... -+,:: ., ,., , . ,:. � a, K . ;YAW,' ; .,«r _ - .din,,. q 9,( +:ate F . � . ,.� ,. -� .::, „`bi .e: -1' r �. _:. � ........� .. v,- .. �._W ,. ! ^�'Mr°Y.- r a �` ��d , � 1 .: 1 r M ,...�. . .,.,, yy . .. . '.� i . E rs e "� uu r :I. u . , .,. . en... n. s .r.�,�y .ax .. a. � ., -- a�... , A ,. ��1, „ �., r � ... �..- Y �:� F ^.�,I .,S �' �� . ...:. 1.� .. 1 , ! - , s ,. ^ .. u '� . yr � -- �? - -� a4r; . ,a .. ,. r: ,.. � ..- . �, , GI � � �. -..I .ra -.� � h a . „ .:: � ,.. � ...ati. � �'�# I . �,.� � -. a � � s � �..rt � �. .�d. '* . -- - : , -:9 Vli �u v. l Mev.m ' +� * l+V �"w� Planned Wellpath Report KDU #9 Version #3 B AKiR IPIUGHIES MARATHON Page 5 of 7 INTEQ REFERENCE WELLPAT:H IDENTIFICATION Operator MARATHON Oil Company Slot slot #KDU 9 Area Cook Inlet, Alaska (Kenai Penninsula) Well KDU 9 Field Kenai Gas Field (NAD83) Wellbore KDU 9 Facility Pad 41-7 IWELLPATH DATA (113 stations) ' interpolated /extrapolated station MD Course Length Inclination Azimuth TVD Vert Sect North East Grid East Grid North Latitude Longitude DLS Build Rate Turn Rate Comments ftj Iftl °] I [ft] [ft ft ft [sry ft sry ft j [ ° /100ft] [ ° /100ft] '; [ ° /100ft] ? ' 8200.00t 100.00 0.000 239.037 7866.11 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N' 151 °15 "W 0.00 0.00 0.00 8300.00t 100.00 0.000 239.037 7966.11 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 78400 70.89 0.000 239.037 8037.00 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 Tyonek 80 -8 Coal OOt 29.11 0.000 239.037 8066.11 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.0• 0.00111111111111111 __._ 0.00Q 239.037, 8166.11E 1374 ° �w � w 8600.00t1 100.00 r 0.000 23 0 7' 8266.11 1374.98 -707A0 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N. 151 °15'21.630 "W 0.00 0.00 0.00' 8700.00t 100.00 0.000 239.037 8366.11 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 ! 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 8709.89t1 9.89 0.000 239.037 8376.00 1374.98 -70'7.40 - 1179.05 j 1413686.20 2360927.36 60 °27'23.617 "N 151°15'21.630"W 0.00 0.00 0.00,37.1- .:4 - 8770.89t 61.00 0.000 239.037 8437.00 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00T 86 - Sand '! i a s g T o P aW i & 8900.00t 100.00 0.000 239.037 8566.11 1374.98 -707.40 -1179.05 1413686.20 2360927.36 60°27'23.617"N .630 "W 0.00 17 "N 151 °15'21 h 0.00 0.00 9000.00t 100.00 0.000 239.037 8666.11 1374.98 - 707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N. 151 °15'21.630 "W 0.00 0.00 0.00 9000.89t 0.89 0.000 239.037 8667.00 1374.98 - 707.40 - 1179.05 1413686.20! 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00. 0.00 yo. -, . 9100.00t 99.11 0.000 239.037 8766.11 1374.98 - 707.40 - 1179.05 1 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 fide � r D..� r � ''� � r "•I h � r r e T� fk> y gAa - 0 , 9200 00t) 84.11 j 0.000 239.037 8866.11 1374.98 -707.40 - 1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W r 0.00 0.00 0.0 9300.00f 100.00 0.000 239.037 8966.11 1374.98 - 707.40 - 1179.05 ' 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 9400.00t 100.00 0.000 239.037 9066.11 1374.98 - 707.40 - 1179.05 ! 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 9500.00t 100.00 0.000 239.037 9166.11 1374.98 - 707.40 -1179.05 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 �._ ... � s L., „I , . 4 � . � . � � la ell k r _ p . .3 �, . d �€ . -.. . v I.. ., I uts �_a f, e � <. - eT & T 8 i .Lr,,.., - 9 ..V I -'�,. .� 11 � .. a ..: f. -- ,.., +ur I �.., gg. n i.e. . I . gg�.. 4... - � C � �4i .i 10. =,a I�. I,IS a.. .: �9 ..,.. ...• _ 5 Tit ..� r;.: ,,. I 11)00 _��- �.. � k a° Ih�I ,: �_a F.�r, .... , � .. 9600,00 � � t1 1 :. � .r, a �,. P9 �M . , , .� 3��aI; ,. 1. � � � ..., . � ..�. �� C ... e _. �W .� �.� � . I� ,,,�.� a, = � �- - �� , � � e 9700.00t 100.00 0.000 239.037 9366.11 1374.98 - 707.40 -1179.05 1413686.20 2360927.36 60 °27'23.617 "N! 151°15'21.630"W 0.00 0.00 0.00 9713.891 13.89 0.000 239.037 9380.00 1374.98 - 707.40 - 1179.05 ; 1413686.20 2360927.36 60 °27'23.617 "N 151°15'21.630"W ' 0.00 ' 0.00 0.00Tyonek D5 9768.89 55 0.000 239.037 9435.00 1374.98 707.40 - 1179.05 ; 1413686.20 2360927.36 60 °27'23.617 "N 151 °15'21.630 "W 0.00 0.00 0.00 TD Planned Wellpath Report EI FAKER KDU #9 Version #3 UGHE MARATHON Page 6 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator a ::: S I � u s. Slot slot #KDU 9 Area Cook Inlet, Alaska (Kenai Penninsula) ISZEIMMIKDu 9 Field Kenai Gas Field (NAD83) Wellbore KDU 9 1Facihty P 4 1 - � �_. _ -. �.. -.� HOLE & CASING SECTIONS Ref Wellbore: KDU 9 Ref Wellpath: KDU #9 Version #3 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start ENV End N/S End E [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] � J , 20in 1in O Conductor 0.00 120.00 120.00 0.00 pen Hole 0 00 1650 00 1650 00 0.00 1581.81 0.00 0.00 172 -287.97 16 P .97 13.375in Casing Surface 0.00 1650.00 1650.00 0.00 1581.81 0.00 0.00 - 172.77 -287.97 12.25in Open Hole 1650.00 5630.89 3980.89 1581.81 5297.00 - 172.77 -287.97 -707.40 - 1179.05 9.625in Casing Intermediate 0.00 5630.89. 5630.89 0.00- 5297.00 0.00t 0.00 -707.40 - 1179.05 8.5in Open Hole 5630.89 9000.89 3370.00 5297.00 8667.00 - 707.40 -1179.05 - 707.40 - 1179.05 Tin Liner 5430.89 9000.89 3570.00 5097.00 8667.00 - 707.40 -1179.05 - 707.40 - 1179.05 16.125in Open Hole 9000.89 9768.89 768.00 8667.00 9435.00 -707.40 - 1179.05 - 707.40 - 1179.05 4.5in Liner 8800.89 9768.89 968.00 8467.00 9435.00 - 707.40 - 1179.05 - 707.40 - 1179.05 TARGETS Name MD TVD North East Grid East Grid North Latitude Longitude ' Sh. [ft] [ft] [ft] [ft] [sry ft] 1 [sry ft] '1) ..... _ . Upper . . �� . [ 60 . 151°15'21.630"W circle 1 KDU9 Base U er 16- 5630.89 � � l � `� l � ; «� � � � � � o 2 xO927.36 � d May-08 KDU9 Tyonek D Snd(NAD83) 16- May -08 , ._._... ....__ 8687.00 - 707.40 -1179.05 1413686.20 2360927.36 60 °27'23.617N 151 0 15'21.630 "W. circle 9435 00 - 707.40 - 1179.05 1413686.20 2360927.36 60 151 °15'21.630 "W circle KDU9 TD (NAD83) 16- May -08 Planned Wellpath Repor BA KE R KDU #9 Version #3 HUGHES MARATHON Page 7 of 7 INTEQ REFFRFNCE WEI,I,PATII IDENTIFICATION Operator MARATHON Oil Company Slot slot #KDU 9 Area Cook Inlet, Alaska (Kenai Penninsula) Well KDU 9 Field Kenai Gas Field (NAD83) Wellbore KDU 9 IDIOM Pad 41-7 SURVEY PROGRAM Ref Wellbore: KDU 9 Ref Wellpath: KDU #9 Version #3 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ftl 0.00 1650.00 aviTrak (Magcorrl ) I DU 9 1650.00 5630.891 aviTrak (Ma:corrl I DU 9 5630.89 .. 9000.89 9768.89 aviTrak a •cord 1 1 U 9 • MARATHON Oil Company #K U any 9 sAK �' Location: Cook Inlet, Alaska (Kenai Penninsula) HUG H Field Kenai Gas Field (NAD83) S ot: Well: KDU 9 IN'�°EQ MAR A THON Facility: Pad 41 -7 Wellbore: KDU 9 Plot reference wellpath is KDU #9 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 23- May -08 Sea „got =,cotr Easting (ft) -900 -850 -800 -750 -700 -650 -600 -550 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 50 Slot #KDU 9 0 — 0 800 KBU41 -7X a0 1, ^ 0c b �O 50 - 00 S — 1700 3500 -100 — — -100 1400 -150 — — -150 d -200 — — -200 1700 -250 — — -250 a 2000 5 . E -300 — — -300 2001 • 1400 -350 — — -350 -400 — — -400 2300 3200 450 — 1700 — -450 -500 — — -500 2600 •10 OJ9 ",n, 550. 4400�a;' v m N; — -550 b �I J 1 1 1'' 1 1 1 1 1 1 1 I 1 1 1 1 st—' 1 ; 1 1 1 ;.Y;' 1 -900 -850 -800 -750 -700 -650 -600 -550 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 50 Scale 1 inch = 100 ft Factinn (ftl MARATHON Oil Company BA KER' Location: Cook Inlet, Alaska (Kenai Penninsula) Sot: slot #K U 9 HUGHES Field: Kenai Gas Field (NAD83) Well: KDU 9 INTEQ MARATHON Facility: Pad 41 -7 Wellbore: KDU 9 Plot reference wellpath is KDU #9 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 23- May -08 Scale 1 inch = 100 ft Easting (ft) -1400 -1350 -1300 -1250 -1200 -1150 -1100 -1050 -1000 -950 -900 -850 -800 -750 -700 -650 -600 -550 -500 -450 -250 - - -250 4100 -300 - - -. 2000 -350 - - -350 -400 - - -400 2300 -450 - - -450 p1 -500 ■ .- -500 C c - L. t 2600 ci 0 z -550 - 4400 - -550 • -600 - 2900 - -600 -650 - 3200 - -650 3501 -700 - 9200 d - -700 \)') C -750 - - -750 -800 -'�G` - -800 ,,a 4700 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ...'i I 1 1 _ -1400 -1350 -1300 -1250 -1200 -1150 -1100 -1050 -1000 - -950 -900 -850 -800 -750 -700 -650 -600 -550 -500 -450 MA ATHON Oil Company 0 EMI BAKER L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KDU 9 ONES Facility: Field: Kenai Gas Field (NAD83) Well: KDU 9 cility: Pad 41 -7 Wellbore: KDU 9 ilk i E� Plot reference wellpath is KDU #9 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 23- May -08 Traveling Cylinder: Map North All depths are Measured Depths on Reference Wellpath i 4, i t f- J33 - 930' 1.,..� -e— ,. L - -250tf.. AO , l'''' S t r : 2,1.14,,,,' !IS:'. le i 'f / f `i f ,{ •,+'•at . ,_ f :1 { 300' � B _ _ e .... _ 1 �. ' e r 1. r > " \ '" O ' }+ U, , �'l ,, , l ea , 0 1 `.J /� ,,,... . .t. ,,,, f� � � r1 / i f p " fi r` . ` f p O p -,. '^'"" .,,J' '` �„ ;` d 1 , � ' ' q ,, y 1 °4 � f ( p't:!1 Y I / P f ' ! 1 - - r‘... ! 1 "'`, f !� , �i,. t' `'„, e k L • }. 6 ,4 .1 1), r ,„ ! g l ` d > � ,,,,,,,---,,,\\ *. t q \ q ,' t t ^ i 4 r l I 270 d V t 7 I 4 4 t't ag 1 61 t ? 6 3 i 1 ' VA�1e i 1 cr \ h,` / ^ r d d g r + ' :r l 33 B 1� k t t yp pj 1 l s p 1. § V 9 � 1, tq 6 � q, ' ) t p � `^p J � (�� t I � d � ,�0 S s / _ 4- A r -�__ $ �. t ,, ,, l , t t t ,, A,\ y. „, r .. 1 1 e ! �` , d .4 pm ,.. , �,.• 130• 1 - ` K 71 -6 f § . to � 4- KBU31 ;�Btl 210' ,..... — E..... ._..i —.. 150' 1eo' !uJ 'F scale f inch = too fl M Clearance Report • KDU #9 Version #3 BAKER nil MARATHON Page Approach HUGHES Page 1 of 74 INTEQ REFERENCE WELLPATH IDENTIFICATION ... ., a .. .. .. Operator MARATHON Oil Company Slot slot #KDU 9 Area Cook Inlet, Alaska (Kenai Penninsula) Well KDU 9 Field Kenai Gas Field (NAD83) -" Wellbore KDU 9 Facili ty Pad 41 -7 ' 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 0.999958 Report Generated 22- May -08 at 15:29:43 Convergence at slot 1.09° West Database /Source file WA_Anchorage /KDU WELLPATH LOCATION . Local coordinates Grid coordinates Geographic coordinates North[ft] 111111111M1111 Easting[USft] Northing[USft] Latitude Longitude (Slot Location - 162.84 - 1056.11 1414878.40 2361612.23 60 °2730.584 "N 151 °14'58.119 "W I I I 'Facility Reference Pt 111111111.11.1 1415937.35 2361755.09 60 °27'32.188 "N 151 °14'37.059 "W Field Reference Pt 1410937.15 2361824.52 60°27'31.931"N 151°16'16.783"W Ca ll c ulat on m DATUM Minimum Curvature Glacier #1 (RKB) to Facility Vertical Datum 87.00ft 40., ! !Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 87.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft 1 MD Reference Pt Glacier #1 (RKB) Field Vertical Reference Mean Sea Level 4 POSITIONAL UNCERTAINTY CALCULATION SETTINGS 'Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.00ft Surface Position Uncertainty included Declination 18.83° East of TN Dip Angle 73.38° Magnetic Field Strength 55414 nT M Clearance Report KDU #9 Version #3 BAKER I fla Closest Approach GHES MARATHON Page 2 of 74 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company a Slot slot #KDU 9 P P ny i (Kenai Penninsula) Well IKDU 9 Field Kenai Gas Field (NAD83) Wellbore KDU 9 Facility IPad 41 -7 ANTI COLLISION RULE Rule Name E -type Closest Approach w/Hole &Csg Limit:0 StdDev:3.00 w /Surface Uncert Rule Based On Ellipsoid Separa'. k Plane of Rule Closest Approach Threshold Value 10.00ft Subtract Casing & Hole Size yes Apply Cone of Safety no HOLE & CASING SECTIONS Ref Wellbore: KDU 9 ' Ref Wellpath: KDU #9 Version #3 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S D End N/S End E/W ] [f t] [ft] [ft] [ft] [ft [ft] [ft] [ft] 20in Conductor 0.00 120.00 120.00 0.00 120.00 0.00 0.00 0.00 0.00 �16in Open Hole 0.00 1650.00 1650.00 0.00 1581.81 0.00 0.00 -172.77 -287.97 13.375in Casing Surface 0.001 1650.00 1650.00 0.00 1581.81 0.00 0.00 -172.77 287.971 112.25in Open Hole 1650.00 5630.89 3980.89 1581.81 5297.00 -172.77 -287.97 - 707.40 1179.05 9.625in Casing Intermediate 0.00 5630.89 5630.89 0.00 5297.00 0.00 0.00 -707.40 1179.05 8.5in Open Hole 5630.89 9000.89 3370.00 5297.00 8667.00 -707.40 - 1179.05 -707.40 - 1179.051 Tin Liner 5430.89 9000.89 3570.00 5097.00 8667.00 - 707.40 - 1179.05 -707.40 -1179 • 6.125in Open Hole 9000.89 9768.89 768.00 8667.00 9435.00 -707.40 - 1179.05 - 707.40 -117 14.5in Liner J 8800.89 9768.89 968.00 8467.00 9435.00 - 707.40 - 1179.05 - 707.40 1179 05 SURVEY PROGRAM Ref Wellbore: KDU 9 Ref Well 1 ath:'KI U #9 Version #3' Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [f t] 0.00 1650.001 aviTrak (Magcorrl) ,U 9 1650.00 5630.891 u. .. 1 DU 9 5630.89 9000.89 aviTrak (Magcorrl) 1 DU 9 9000.891 9768.891 aviTrak a corrl M Clearance Report K DU #9 Version #3 !BAKER MARATHON Closest Approach HUGHES Page 3 of 74 INTEQ REFERENCE WELL.PATH II)ENTIFICATION Operator MARATHON Oil Company Slot slot #KDU 9 Area Cook Inlet, Alaska (Kenai Penninsula) KDU 9 _ Field Kenai Gas Field (NAD83) Wellbore KDU 9 Facility Pad 41 -7 1 - ........... - .4.6. ., . n_..,,..:... ..,.. - � . az• _ o. - ..... _,.:�..a . sv...........4.111.. ,- .5,4 , 04.11.70. , 41,40.01.70.9.4,4 v � , „ ,-,... , CALCULATION RANGE & CUTOFF a From: 0.00ft MD To: 9768.89ft MD C -C Cutoff: 300.00 ft OFFSET WELL CLEARANCE SUMMARY (60 Offset Wellpaths selected) Offset Offset O �� , „ i Ref Min C -C , Diverg Ref MD of n Offset Offset Offs Min C C Min C -C : ACR effset € Facility Slot Well Wellbore 1 Wellpath 1 MD Clear Dist from MD Min C-C i Ell Sep ] Ell Sep 1 Status [ft] 1 [ft] [ft] Ell Sep [ft] Dvrg from , [ft] [f ,, 1 Pad 14 -6 slot #KBU 31 -7 KBU31 -7 KBU31 7Rd MWD <5814 -7575> 7488.40 288.40. 7488.40 7490.84 WE 7490.84 PASS Pad 41 -7 slot #KBU33 -6 KBU33 -6 KBU33 -6 GMS <0- 7902 >, MWD <7902 -8110> 534.66 164.17 534.66! 550.20 150.13 550.20 PASS y Pad 41 -7 slot #KBU12 -5 =WM KBU12 -5 NaviTrak <212- 1890' > <2014 - 64965<6607 - 89205 ma 184.33 8100.00. 0.00. 170.87 8100.00 PASS Pad 41 7 slot #KBU42 -7 KBU42 -7 KBU42 -7 MWD <0 -7570> 672.19 192.98 7600.00 680.89 178.47 7600.00 r'1 ,1 "v 17,'" p 9 '' ! X91, l'ek'- _ -- L . CIA . € € -, a , : ' az»✓ r . v1 + Ft, . . � -- - - '�'r2kV n � r� '� d �.° e4, .r. , L. ,,, ,..,.• ! r - -- ` _�_�� -� -- - -- ± � r ' u'I'w�s nti: Pad 41 -7 Slot #KBU43 -7X KBU43 -7X MWD <0 -8610> 1300.00! 200.11 7800.00 1308.59 180.23 7800.00 PASS Pad 41 -7 Slot #KBU41 -6 KBU41 -6 KBU41 -6 MWD <0 -9733> 214.38 208.38 8200.00 100.00 195.10'. 8200.00, PASS (Pad 41 -7 (slot #KTU13 -5 KU13 -5 ME= GMS <0 -8120> 0.00 223.63 0.00 20.78 210.13 20.78 PASS Pad 41-7 slot #KTU43 -6X KTU43 -6X KTU43-6XRd MWD <7670 -9464> 0.00 228.18 500.00 520.78 213.84 520.78 PASS .,.. .: , m Via. y _4 �� .. :, � . -:, . .� s � , . ._ , _. t. � ,, , _, ,..� w .. „ ,.a, . .: , .„ ,. ,:o Cx, , ". ,.. ,.u . Pi U T . ~w iu c , : �, , , a . . . ., u.. d e�.. . e'�" . i a .,,, �, v,... - � _.G..n ..:,. i . ti �... �� -L . lu. ,.. �- ,. .a . . C.:vV C ..- .u.P L.. .. .� ,� . _. r.,. �. a ..... u �� .r �., a., � �,�.. .,��,��n`�iva� � s� �.>w,r_ :. w� �.. � �, ,.,�...a;a�[rw. 1:� .. __...�..... � .. --- - - - gg ., � .� r L1 _ � _ .7st��, ��v�..��.��,�. � � , _u�ry:�.�y +b . p�,�f,a �� r e�N I �� +,�_nf -reYG, _.ah��a�nr,�� ` ��l'�I� z ! � it Pad 41 -7 slot #KTU43 -6X KTU43 -6X KTU43 -6XRD2 MWD <7700 -9470> 0.00 228.18 500.00 520.78 214.21 520.78 PA Pad 41 -7 slot #24 -6 KTU24 -6H KTU24 -6H RD MWD <8844 -8940> 559.62 242.79 9100.00 559.62 MEM 9000.00 PASS Pad 41 -7 slot #24 -6 KTU24 -6H KTU24 -6H (Pilot) UNKN <8820 -9010> 559.62 242.79 9100.00 559.62 MEM 9100.00 PASS Pad 41 -7 slot #24 -6 KTU24-6H KTU24-6H MWD <0 10960> 559.62 242.79 9000.00 559.62 9000.00tPA55 .. rn � n r rM sc, wur:u��r .� �s ^- v .. �5 ,,. r ,r.r .w>x ruu .u. r � .. ... k,.. , , . , -. L. P -.,:Ey r:.d 1d u _r3 � _ -_ I �.. .. .: , : , . .. �, , ., . a,.. ... -... . . m l u �. , ..,: , w ',440,211.1,11/i , 1. � -m � �_.. ..., i rl r 1 d, e .1..,7,-,46 , , {� . „,� , � � ni ,i, �. e.. �... -. V- T. su eC . -. Q . , _ . _ .m y . .�., . . I . , ., .. . . ,.. ,: -. .I � ... :.: , ,. L. .... ,..m. a. -.. ldt. � i,1 � � � S _ ? �s� sr. �r � � .,: ,u ., �" �a , , . � ,. i I .. �,: "VS r. r._ J : � � n . ,__ � � d r ._ � , . ,, 46�1� 19 , E �� u ! t � �. � � � _wta��,xl d .r.� �I�. ..�. ,��, «, z..,, -, „�,:��d� ,r a. „, ��.t �, n .., _ ., �, �,� .� .r - �r r r�n m I � 6 � � 1 � . � fi � �:�a,�r � Pad 14 -6 slot #KBU 31 -7 KBU31 -7 KBU31 -7 GMS <0 -7375> 6124.38 420.28 6124.38 6193.77 253.48; 6193.77 PASS . , Pad 41 -7 slot #KDU 4 KDU4Rd KDU4Rd MSS <4320- 10810> 658.36 ..... _... 277.98 658.36 700.00 263.12 700.00 PASS ',Pad 41 -7 slot #KDU 4 KDU4 KDU4 GMS <0 -5549> 658.36 277.98 658.36 700.00 263.12 700.00 PASS 1 t Pad 41 -7 Slot #KBU33 -6X KBU33-6X KBU33 -6X MWD <0 -8405> 14.86 MEI 14.86 14.86 267.63 500.00 PASS ' ,.. -.a ,^":S`... .u...., a � .__... -1..-C'] , . .__. T�, 1.T - -k. , wu ,.n.,'r,u k n.: r.. ,. o�.. _-�r �.,. ,,,.. ". , CEI ,n _ . .. f r _ , . . u � ? i:: , w. H r .. .� .,,. 'P .. . 9�,+E � ., -: -. _ ._ .r. . � .. . . ______. n. �h -;.3 is r..,, r. �.�'.�"�. �..: m -. , r• .,_., +,,.a.,.. -: wti n.. r �. x . .. ,.. �C,aw i �. -.. ... fi .:. w _ -. �. ., :. ._ _. _ . - .., -.. l.. uoiP,r -� -r J .h r I ,.,., s, ...� � u ., , m�mr�� .�,h _.�. , �,�..,.. si. ...,e�',, x r��: e , x _ T.� r,., .� .� .,m. _ , ,. � _: ,. ,_. _ _ �g -- w _ 1 .. : � 5„ 1 .�,�>'a1s��w� a�Jb � �� <�4:,✓r, - � Pad 41 -7 slot #KU 43 -6 KU43 -6 KU43 -6 GMS <0 - 4129 >, MSS <4174 -5701> 137.50: 292.71 137.50 100.00 279.25 100.00 PASS ', Pad 41 -7 slot# KBU34 -6 KBU34 -6 KBU34 -6 NaviTrak < 165 - 15095 <1623 - 5343' ><5463 - 77395 580.63 297.73 7900.00 652.71 282.95 7900.00 PASS ' Pad 41 -7 slot #32 -7 MUM KTU32 -7 MWD <0 -8864> 0.00 309.89 4900.00 555.95 296.33' 5100.00 PASS r Pad 41 -7 Slot #KBU42 -6 KBU42 -6 KBU42-6 MWD <0-8624> 166.88 321.99 166.88 138.37 308.54 138.37 PASS ,r , ,': °rw....lr ,,pp : i 'V l p ! .I�,4m 1 -.. : r. >?,, .s 9 : RICE a:'d r. rl F I �4- aw i... vW{ r ,i.. �I oR �n ,-, f:. ,` , �:. o'M„ - . � ...: .. . : . � �� . ., a l � lug � ,gI I� r.��l��'� 4 � Pldr'"�'." �' � 1 R _...._.. �...._. ._._..._,.. -, ..m.. .....:.......e..�.. .:�o ..,, , w P� � I r V S 4� 1�' , : , .m... � rv, �� rn11 A ,Y ry p . . d^ a � �±,1� @'d� irk : ,,��M�.tl�'�i�:' � - �IIIIrMr� � 1� � "°4 Mk Clearance Report KDU #9 Version #3 BAKER Closest Approach HUGHES MARATHON Page 4 of 74 INTEQ REFERENCE WELL.PATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KDU 9 Area Cook Inlet, Alaska Kenai Peninsula Well KDU 9 !Field Kenai Gas Field (NAD83) Wellbore KDU 9 Facility Pad 41 -7 CALCULATION RANGE & CUTOFF From: 0.00ft MD To: 9768.89ft MD C - C Cutoff: 300.00 ft OFFSET WELL CLEARANCE SUMMARY (60 Offset ll aths selected) i Offset Offset Offset a Offset i Offset 7 Ref Min C -C Diverging Ref MD of Min C -C Min C -C ACR Facility Slot Well I Wellbore l Wellpatb ] MD Clear Dist from MD Min C -C k Ell Sep Ell Sep Status [ft] [ft] [ft] Ell Sep [ft] Dvrg from g P [1 g .._ [ ftl * [ft] Pad 41 -7 slot #KBU44 -6 KBU 44 -6 KBU 44 -6 MWD <0 -7440> 0.00 Pad 41 -7 slot #KBU11 -8X KBU11 8X KBU11 -8X MWD <0 -7659> 525.00' 358.14 7600.00 0.00 344.64 7600.00 PASS 360.01 525.00 542.42 346.16. 542.42 PASS Pad 41 -7 slot #KU 43 -6A IKU 43 -6A KU43 -6A MSS <0 -5300> 252.89 365.51 252.89 286.49 F 356.98 286.49 PASS [Pad 41 -7 slot #KDU 2 KDU #2 KDU #2 MSS <0- 10522> 361.64 379.11 361.64 341.30 365.10 9000.00 PASS Pad ' °: ,fib,: �� r � � r ( � ' � r °,c � i � ; . � z � a „ ,, , .� � I � a .: a � d. I 6 ^ L Ia S "��'= 21'� 34 _� ® �4 u . i .,., � �'�., , a .. °. 41 _ .�ru �_� i��ra, w,, �a».y.= r_. �.Nr.� �.�r. r.. . ��, . , �.,_�.�._� _ ._ _ _. - ,. , r �r ° , i 3� "4 ,I " I ' ..,._ 8": ��,r � Pad 41 -7 slot #KTU32 -7H KTU32 -7H KTU32 7H MWD <0- 11857> - 408.55 387.99 9100.00 518.02 374.37 9100.00 PASS Pad 41 -7 slot #KU 11 -8 KU11 -8 KU11 -8 GMS <0 -5350> 416.56 390.79 416.56 443.631 376.49 443.63 PASS Pad 41 -7 slot #KBU41 -7X KBU41 -7X KBU41 -7X MWD <0 -5300> 0.00 409.81 5600.00 0.00 396.31 5600.00 PASS Pad 41 -7 ". . .. _ < 0 8220 > 510.62 8100.00 525.65 8100.00 PASS r slot# KBUI l -8Y ^ " r r KBU 11 -8Y „ KBU 11 8Y D ` <- - T, .62 424.69 ,,.,,, .65 411.03 a - M.c% a M:&Ev .,. m :..:... Lr..x' .. ,.0 r w . - _ ;rmyx 9 k u .. -.a„ , s 4, , .. f ,: 1' " ''''. S .. -.� .... e x:.. Y . .,. pp R.. u. .. }- , . W 7 r r P . -a � . '.s . o re , �.... hP _.. ;x ,.. , .r .. ra I� n . r,;: � . ..._ ., u � .° ... .i ., r 5 ," d, ry I @I:bNI , a rL,.. , .. ..... 4, c . ..� , P w a.. ... :... x ,. r ,,. ,. .. , _ �.: �i R � ., iWR ...: � �.� , . .. � , [ r , r a ! P r �.,.P.: d .?�'If � 4 @ V IP'� i9. ,d ;',r:r;�iCa ,,aI , _ a. -, . - ,r�:.,:rra�* , . �� .�...�.� ,.�, _ '.,,., .,., =, ..i ... . ..... � I It ,. u� r,. .. f! ,_._ *rx ul: ul IN ��w,4 �,�ilk l�l �1 � ld. �' 4 ,tW Pad 41 -7 slot #KU 24 -5 'iEM.KU24 -5Rd MWD <3470 -4816> 0.00 428.83 0.00 0.40 415.33 0.40 Pad 14 -6 Slot #KBU 23 -7 KBU 23 -7 KBU 23 -7 MWD <0 -9320> 4129.41 1294.67 4129.41 4137.54 1143.60 4137.54 PASS IPad 14 -6 Slot #KU 21 -7X IKU21 -7X KU21 -7X MWD <193 -5032> 1 5218.09 1288.37 5218.93 5218.93 1145.06 allEEDIRPASS a ' Pad 14-6 slot #KU 21-7 KU21 -7 KU21-7 MSS <0 4453> 4700.00 1334.64 4700.00 4696.09 1179.03 4696.09 PASS ,. �:.:,.. �$ E...a, F , 4:„I°d '�"� ,� 7C _..�� ar - .r.`� A �_ I e . nn: 5+w ?Ee , ... .:... a ° .. .,� � .. __. a �� m r r sa r.., I., k - - »'. SdYfY I ....5 0. e_ ,aq« . `; c£"x. , I x. - _ a4 � r.. ., rL ols*. I �Y „ c A r m .., ,... e s _. IsMy._ f,, ,a. - IM1u,. .. a�.. I'. . ".., _ a% .% aY....a y� M h[.. ,, x, . ,. ,.. ,.,.. r . I , . _ .. �... +r., ,_.. a. .. �« : -,� , ,: r �' s u r .��r.... �. ✓. r..a �M , � i ,rN y, )r a .. , r, -. +r � I., �,� E ,.r,- r, .r V , -�.. - <a. r . .,.a a ... 9 ......i +�`fi .. rr :..r 3. .. . ->- h �T.:. �Sr. , a �, n Yx.rr __ _. . .,W m ,,.� km��.Q a. i. F r.,.. .L . , r. r" �.r , r I .. ..,, '� i. ,r - . _ a ,.: ,., r= .,, ,« , �.,.. �'� �� .._ li . ': .. E , �4� -. _.. a .� > �h 4 >'n_ -: 9 �i,�.` .P "Br�,p,ir _ ... �. . _.�. , Ys dr�Jv,.,_�rya,. ._�_,�`r'3: .:�.,�a.w �'bmrs ;.;. __ .." ..: :.��o�. ,Cc u��n::: �. ,sr. .,. �u`,hk�hr ,�. ,. ,�. a: , .3a. : tl,,:h�' �9r1 .a r p, ,,,.�l�r, .x`fiti� r, .w �xRr rl.. Tua'as: ��P....�:_�,r Pad 14 -6 Slot #KBU 11-7 KBU11 7 EBBEIIMMINMWD <0 -7900> 7952.50 1613.41 7952.50 7954.52 1461.62 7954.52 PASS Pad 14 -6 Slot #KBU 24 -6 KBU24 -6Rd KBU24 -6Rd MWD <3964 -7830> 4112.50 1649.27 8000.00! 4122.00 1507.12 8000.00 PASS 1Pad 14-6 slot #KU Totco .. . 14-6Rd 6 Pad 14-6 slot #KDU 1 KDU 1 KDU-1 MSS <0-9895> e y s <200-15047'> 8550.00 1926.52 8550.00 1742.02 8738.28 PASS S PASS Pad :, ... . e i , o ' ` ; - .'Ij -,,, rl :p fly I .,! F _.,. ..rJ rW_ ,._ �'o � ....r.: �� "." "¢wy -.�� ', r: . � ,L,, :_" �.: ., � „ -:, �� re .. ._.. t k �Wrv� '��. 41,-01-. '.,. a ,; ° °R �:.,atur Pad 14 -6 slot #KU 14-6Rd KU14 -6 KU14 -6 Sidetrack Totco Incl Survey <4800 - 5403'> 5729.92 �� 2079.82 5729.92 5729 ` . 5729 92 1801.32 1 . l " m slot #KBU33 -7 KBU33 -7 KBU33 -7 MSS <0 -7910> 7350.00, 2077.44 7350.00 7320.16: 1874.18 7320.16 PASS 96 PASS ; Pad 14 -6 slot #KBU 23X 6 KDU 8 ) KBU23X -6 KBU23X -6 , 0> MSS <10194- 10225> 6127.09 2036.15 6127.09 6127.09 1893.88 6127.09 PASS GMS <0- 6950 3012.50 2191.35 ': " (Originally . 2191 35 3012.50 3012.50 2060.27 3012.50 PASS ,,: ^. . , .. ' f q h u..,.vV '. ", y . , v�v "' ,p a +Jr,Vri _ ,. �-. _ } ':.: ... f -. _. . �.' N.Ih .NdY, -. d , i::r::v s . , .., :, t. r r ° _. i. .... Win., ,, ...'r J, ra �' %!uv ,:t,.f:. xL r u'. 9 d:: , �. -. �. sWd r,. .,:qr" -� r - @+, 1 4M: B' " ' . ,. ,. r.k '.. r. .n : u ,..f mr:, ,N. ... r�r~. w Kr�r� ., r, n 1^ , .1 .: - „ Ij 6 ^v... - ... lk .. u5 n � '✓� � � '^�,'!, a cR: ._. .r,lk;,w*la a #:. c. . r..: � ^v�. 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M1,h 9`�r�� °'�,: @,': Clearance Report i1 KDU #9 Version #3 BAKER ( M) NARATH4N Closest Approach N GHES Page 5 of 74 INTEQ Q► REFERENCE WEI..LFATN IDENTIFICATION Operator MARATHON Oil Company Slot slot #KDU 9 :Area Cook Inlet, Alaska (Kenai Penninsula) Well KDU 9 = IField Kenai Gas Field (NAD83) Wellbore KDU 9 Facility Pad 41 -7 ' ' CALCULATION RANGE & CUTOFF . �� 1Frorn: 0 OOft MD To: 9768.89ft MD C - C Cutoff: 300.00 ft tOFFSET WELL CLEARANCE SUMMARY (60 Offset lyelliaths selected) - . x Offset Offset Offset ] Offset ] Offset "] Ref ] Min C-C Diverging Ref MD of Min C -C Min C -C ACR Facility Slot Well 1 Wellbore a Wellpath t MD 1 Clear Dist ' from MD Min C -C Ell Sep Ell Sep Status k 3 [ft] g [ft] [ft] Ell Sep [ft] Dvrg from [ft] [ft] Pad 14 -6 slot #KU 43 -12 KU43 -12 KU43 -12 MSS <0 -6530> 3075.00 IIIIIEEIEI 3075.00 3089.37 2403.45 3089.37 PASS Pad 14 -6 slot #KTU 13 -6 (Originally KU13 -6) KU13 -6 KU13 -6 ,,MSS <0 -5500> 2311.87 2569.04 2311.87 2313.13! 2448.92 2313.13 PASS Pad #41 -18 slot #KBU13 -8 KBU13 -8 KBU13 -8 MSS <0 -8770> 7984.20 3605.42 7984.20 7984.20 3358.83 7984.20'PASS 7883.91 7884.29 3723.62 7884.29 PASS „! I , „. � _ ;,. KB U24 7X ., KBU24-7X „V {� NaviTrak - 8303 > , 91 :.. !Pad #41 -18 Slot #KBU24 7X � yr „� E A Pail # 4l - 8 s] •# X24 -7 ,o !� , '�. � . -s 'z a.. _ ,a � - s .v � , -, '1�_7ltD�.,.. ,. , . 7883. + .� .. ', .. ' 3= �., � I, 3909.63 h rr ...;.. , . I ' P 1 „ I K �l 5 7' 18� 05, 43�� 731 I 13 ,404?W7 .. :. .... . ..._... ,,. .. .a,.4d,GUluu.�, .uv� - -� .�_ov.5�.a� ,x..Jsv FZ � = ,. �7 I� �k7'r a „� . .� ,:_ � -, u^: � .,. I � .,I..��.0 ! a �� . IV luw.'Y.! � � ��. _,e . _ _ .., �__� - _ ...: __ _ _ _ �: ��. ,u?�� , _ 0 .,_i .4' '7_1 A S ''' Pad #41 -18 slot #KU24 -7 KU24 -7 KU24 -7 GMS <0- 58205 5122.24 4217.14 5122.24 5122.24 4076.66 5122.24 !PASS 1Pad #41 -18 Slot #KBU41 -18X KBU41 -18X KBU41 -18X NaviTrak MWD <139- 8740'> 8986.21 4428.83 8986.21 8986.21 4285.78 8986.21 !PASS Pad #41 -18 'slot #KBU14 -8 KBU14 -8 KBU14 -8 NaviTrak MWD <173 - ? ??'> 6052.50 4476.09 6052.91 6052.91 4316.69 6052.91 PASS Pad #41-18 sot #KU41 1 - 18 KU41 -1 8 MSS <0- 14721> 9768.89 5204.65 9768.89 9768.89 5029.48 9768.89 PASS ' , .. k s,._.. .W l,.h Pl ^v° . F =ter_ .. .. ,. .,. yy ., ,. �a.:: �.. ,, � 6v ,� ... I .�. t it .. , .,, , k� 1� , ! s]dtl #��11 '�.�, 11 Iti� ,. + I!� llsl ,� W �� .�� X17 � � _1 1"1 � ,rGII � � . ' . - - - � . u. _� � ., +, , 39 .i., . .2 b � V�m� „�.�,ti�lu�al �� ..�w, „...,� �� „, . _.,�,� _ � _ ��.a�� - � �,�a +�I,� , 5 '�4 � S� u , : �91a ' • • 411 Marathon Oil Company FE Well Name: KDU 9 Location: Kenai, Alaska. , - - A 1 T ED ' _ ] _1 I - ' ENGINEERING , ,i , , PLAN ,_ RO3 E CT P LA J 2 ' BW9 Prepared For: MARATHON OIL COMPANY Well KDU 9 Kenai Peninsula Alaska 1 . 1 i 1 Prepared by: Jim Dwyer Reviewed by: Hal Martens Presented to: Will Tank May 28, 2008 Mi SWACCL.- _____------- • • Marathon Oil Company Well Name: KDU 9 Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the recommended drilling fluid program for the KDU 9 Well to be drilled this year. The following is a brief synopsis of the program. Overview: KDU 9 is an excape well in the Kenai Gas field. Flo -Pro fluid will be used for lower intervals. If at all possible, some mud may be reconditioned from the 12.25" hole for use in the 8.5" hole section. New Flopro will be built for the 6 1/8" hole section. Surface Interval: The surface interval will be drilled with the standard Gel /Gelex spud mud. No problems were noted in this interval while drilling the offset wells. Intermediate Interval: This interval will be drilled with a Flo -Pro fluid. After drilling out the surface cement, the well will be displaced to a Flo -Pro KC1 fluid. While the program calls for SafeCarb bridging material, Mix II will also be added to the mud system prior to drilling the Sterling A8 sand ( +/- 3899' MD). This is a highly porous depleted zone that has contributed to losses of whole mud in the past. Production Intervals: The 8.5 interval will be drilled with the standard Flo -Pro fluid. After drilling out the intermediate cement and 20 — 25 feet of new hole, the well will be displaced to a new FloPro fluid. The 8.5 in hole section will require a mud weight between 11 — 12 ppg. The 6 1/8" hole will only need 9 — 9.4 ppg mud weight. New Flopro mud will be built for this section. Fluid loss should be maintained @ 5 - 7 cc's API for this interval. Completion: The completion will consist of a 4 -1/2" liner cemented in place. This will be tied back to the surface with a 4- 1/2" completion string. Corrosion control will be added to the 6% KCl brine that will remain in the 4 -1/2" x 7" annulus prior to tie -back. Jim Dwyer Sr. Project Engineer Reference Wells: KBU 33 -6; KBU 42 -7; KBU 43 -6X; KBU 12 -5 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. Mi SWA Q,- • Marathon Oil Company Well Name: KDU 9 Location: Kenai, Alaska. EXECUTIVE SUMMARY r Our goal is zero spills and zero incidents and 100% compliance while providing fluids and solids control services to Marathon OiI Com an ioN s p Y• MI A a 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. TIt SWA_Zirpor We expect to drill this well for a product cost of less than $44.69 per foot. We estimate the use of less than 7223 barrels to drill this well, not 'FE withstanding any losses to the formation. Mi SWA=M • • IFE Marathon Oil Company Well Name: KDU 9 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth . Benchmark 1 Benchmark 2 Benchmark 3 Interval (ft) Fluid cost per foot Volume Usage 0 — 1650' < $12.61 ft < 2452 bbls 1650 — 5631' < $45.57 < 2385 bbls 5631 — 9001' < $45.08 < 1533 bbls 9001 - 9769 < $96.83 < 853 bbls Total Project Avg. Max. Targets for Drilling < $47.50 ft < 7223 bbls No Spills from Centrifuge Van Interval Operation • Marathon Oil Company ==_ 1FE Well Name: KDU 9 Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 13 -3/8" 16 " 'tip 1650' 1582' Gel /Gelex Spud Mud 8.6 — 9.2 4 $25,801 Screens 165/175 mesh Desilter Centrifuge Van 9 -5/8" 12 -1/4" 5631' 5297' Flo -Pro w /SafeCarb 9.0 — 9.5 7 $187,433 170 / 200 mesh Desilter Centrifuge Van 7" 8 -1/2" 9001' 8667' Flo -Pro w /SafeCarb Screens 200 mesh Desilter 11 — 12.0 6 $158,417 Centrifuge Van 4 1/2" 6 -1/8" i 9769' 9435' Flo -Pro w/ SafeCarb 9.0 3 $79,269 230 mesh screens Complt 6% KC1 8.55 3 $15,608 ➢ 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 not include provision for whole mud losses. ➢ Cost includes daily engineering. Mi SWACO S Marathon Oil Company a�. _ 1FE Well Name: KDU 9 Location: Kenai, Alaska. FORMATION TOPS ESTIMATED PORE PRESSURES '�'[` ._ p�R F �INta �� " „ .�: ,i r u 1 € � � � a � 8 a is uy1 �. 6 4 § - a ff Z, Sterling A8 3567' .8 — 6.5 Beluga 4655' 1.5 — 7.3 Middle Beluga 5312' 5.8 — 8.5 Tyonek 7162' 5.8 — 10.6 Tyonek 80 Coal 8037' 11 — 11.5 Tyonek 84 -6 Sand 8376' 11.5 — 12.0 Tyonek 86 -2 Sand 8437' 11.5 — 12.0 Tyonek D1 8667' 8.0 — 9.0 Tyonek D2 8782' 8.0 — 9.0 Tyonek D5 9380' 8.0 — 9.0 TD 9435' 8.0 — 9.0 Mi SWA 9 • • At Mak Marathon Oil Company S---:&J Well Name: KDU 9 Location: Kenai, Alaska. 1 Estimated Product Usage Summary 4 -41 : 1 .'": ' - ii. i t�`c'E Intermediate 11 ediate 'roductioll ,4 ' t, �t 4 �r � 3 � 'fir` � � P� t31�� y ,.' Ss f�J- . :. -r ae � =, 'r 9 vt l _ t q *. , �"' '+ §M i Y yv 4 i,' ,.�-.- q'^� 3 . Asphasol 48 61 34 143 Supreme Bicarb 12 12 9 9 42 Caustic Soda 12 24 12 9 57 Conqor 303 4 4 Conqor 404 8 5 3 16 Defoam X 13 9 5 27 Desco CF 25 25 Engineer 4 7 6 3 3 23 Service FloVis 167 107 60 334 Gelex 31 31 KC1 1002 644 358 168 2172 LubeTex 57 37 20 114 M -I Gel 736 736 M -I WATE 239 3066 685 3990 Mix II 200 200 Polypac UL 24 83 31 20 158 Resinex 48 61 34 143 Safecarb 954 613 341 1908 Soda Ash 12 12 9 9 42 Sodium Meta 32 15 9 4 60 Bisulfate MI SWAG Marathon Oil Company Well Name: KDU 9 Location: Kenai, Alaska. Plans & Procedures COMMUNICATION — The Field Mud Engineer will communicate daily with the Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole problems, possible changes to the mud program, and proposals to use products not included in the mud program if they would aid in overall drilling performance. OFFSET WELL DATA — Please review Pad Data Sheets as part of prespud meeting and as drilling progresses thru various casing points. WHOLE MUD LOSSES TO THE STERLING A8 SANDS — Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. FLUID LOSS CONTROL — In the production interval the API fluid will be maintained at less than 6 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum. PolyPac UL will be used as the primary fluid loss reducer as this is an excape well. LSRV — When drilling with a FloPro fluid, the low shear rate rheology as measured with Brookfield rheomter should be maintained between 30- 40,000 cps. In addition to adequate additions of F1oVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. DRILL SOLIDS — MBT — The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. MIXING CONDITIONS — Whenever possible all treatments to the mud system should be made as pre -mix additions. Polymers and KC1 should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. CORROSION — Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +/- 2000 PPM. CORROSION — Sodium Metabisulfite additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm MYACIDE ADDITIONS - MYACIDE additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. 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. Mi SWACCI-- • • MIFE Marathon Oil Company Well Name: KDU 9 Location: Kenai, Alaska. Interval Summary — 16" hole o - 1650' Drilling Fluid System Gel / Gelex Spud Mud Key Products MI Gel / Gelex / Soda Ash / Caustic Soda / MI Bar / PolyPac Supreme UL / Sodium Meta Bisulfate Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 165 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, hole cleaning. Interval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec. /qt) (lb. /100ft (m1/30min) ( %) 0 - 1650' 8.6 — 9.0 60 - 100 25 - 35 NC - 12 +/- 9.5 < 7.5% > Treat drill water with Soda Ash to reduce hardness. > Build spud mud with 20 — 25 PPB M -I Gel to +/- 100 seconds /quart funnel viscosity. > Lower funnel viscosity to +/- 75 after gravel zone has been drilled. > Add Gelex as needed to maintain sufficient viscosity for hole cleaning. > Increase funnel viscosity if fill on connections begins to occur. > Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. ➢ Add Sodium Meta Bisulfate to maintain a DO of < 3 PPM. ➢ Condition mud prior to cementing casing to reduce yield point and gel strengths. > Estimated volume usage for interval — 2454 barrels. > Estimated haul off volume — 3282 barrels. Mi SWAC9.. i Marathon Oil Company IFE Well Name: KDU 9 Location: Kenai, Alaska. Interval Summary — 12 -1/4 hole 1650 - 5631' Drilling Fluid System Flo -Pro Fluid Key Products Flo -Vis / PolyPac Supreme UL / KC1 / SafeCarb 10, 40 / Mix II / MI WATE / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / KlaGard Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 200 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 MBT Solids (ft) (ppg) (cp.) (cps) (m1130min) ( %) 1650 - 5631' 9.0 — 9.2 8 —12 40,000+ 7 - 9 <7.5 +/- 5% > Use one rig pit to drill out surface casing. In other rig pits, build new Flo -Pro fluid using the enclosed fluid formula. Pre -heat makeup water with steam hoses as much as possible. > After drilling out surface casing, displace hole to Flo -Pro fluid prior to running leak off test > As mud heats up, increase F1oVis concentration to 2 PPB as needed. > NOTE: Be prepared for whole mud losses in the Sterling A8 sands ( +/- 3899' MD). > NOTE: Add 3% Lubetex after FloPro has sheared down. Delaying the addition of Lubetex until problems are seen can cause sliding problems and strike slip issues with bits. > NOTE: This fluid will be reconditioned for use in the 8 '/2" hole interval. It is imperative to maintain proper fluid properties for that purpose. > Estimated volume usage for interval — 2385 barrels. > Estimated haul off volume — 3482 barrels. > Condition mud prior to running 9 -5/8" casing. M� SWA� • • Adm. Marathon Oil Company 'FE Well Name: KDU 9 Location: Kenai, Alaska. Virtual Hydraulics SnapShot 12 1 /4" Hole Mi S �fl°�_ ©1995 -2006 M- IL.L.C. KDU 9 intermediate Hole MD:5630 ft 0 eralor:Marathon ++--��r � ��..rrss . �r 'Ma 01995 In -I L.L.0 p 550 GPM TVD:5297 ft WeliName: KDU 9 B VIRTUAL HYDRAI1S* SnapShot Size:1225 in Location:Kenai Peninsula VIRTUAL III 1L {8 611��1�1Y` }* Date:5/28/2008 CountryAlaska Depth Geometry Angle Density Va Hole Clean Pressure Distribution (ft) MD/TVD CsgODbD ( °) (Iblgal) (ft/min) Index ( %) N 90 10.0 0 120 zao VG c F r Bit 55.8 Ann =6 DS= 38.2 Qn I 0 45 9 s.z 1 LL- -- 5001 .... 9999 "`` , I II II woo if ( j ■ D rBing Fluid 1500 FLOPRO NT 1650 l ii ' 1 • _ Mud Weight 92 lb /gal tssa 12.800 Test Temp 100 °F R 2 999 (--- -_ j_ --- SystemData Flow Rate 550 gal/min 250 Penetration Rate 100 ft/hr Rotary Speed 80 rpm Weight on B It 10 1000 1b 3000 ,... Bit Nozzles 13.13.13.13 -' • 13.0.0 -0.0 a5o I Pressure Losses • Modified Power Law ( ` I Drill String 291 psi I + I _ - MWD 250 psi a9aa1 I__ a ----- -- I Moor 150 psi i I Bit 426 psi 4500 ^' Bit On/Off 100 psi , Annulus 46 psi Surface Equip 24 psi I I U -Tube Effect 62 psi —~ Total System 1349 psi I I ESD ECD +Cut 5500 Csg Shoe 926 9.44 9.66 1 5630 - 12260 I i TD 927 9.44 9.66 5297 ■ - E50 E ,.'" 103 VH- Vonlon 3.1 F31 s FT0(2002) t . n Frruml. m . "" f 7 File 4031.10.120e F300o Mi SWAC � • Marathon Oil Company IFE Well Name: KDU 9 Location: Kenai, Alaska. Hole Cleaning Index 12 Hole MI _t"'1 ©1995 -2006 M -I L.L.C. KDU 9k)termed�te Hole MD:5630 ft Operator:Marathon --•= "'r ' � ` ° � " �� - � c TVD:5267 ft WetiName: KDU9 550 GPM VIRTUAL NYDRAULICS* VRDN* Date:5 Bk Sae:1225 k Loo : Alas en nsu� 282008 CountryAlaska Hole Cleaning 1.00 Marathon KDU 9 — ROP 50 ft /hr — ROP 75 ft /hr Poor Hole Clean — ROP 100 ft /hr — ROP 125 ft /hr 0.751 — ROP 150 ft /hr K — ROP 175 ft/hr d 'C "`^-- Fair Hole Cleantn • iv 0 50 — Good Hole e. • o 0.25 -� Very Goad Hote Cleaning 0� 440 460 480 500 520 540 560 580 600 620 640 660 Flow Rate (gal /min) Mf SWA� A _ Marathon Oil Company =..m.,IFE Well Name: KDU 9 Location: Kenai, Alaska. Fluid Formula - 12 -1/4 99 Interval Mi SW� - KDU 9 Intermediate Mud Formula 12 1/4" Interval from 1650 - 5631' Input Description KDU 9 Intermediate Interval M ud Weight 9. 2 Prehydrated Gel No Weight Material Code MI WATE Prehydrated Gel Conc. Weight material sG , : 4.2 KG' Chl ride " Weight Material Price KCI Wt%o 6 Output -1 bbl Order of ; Products Concentration Volume red s# Addition Field, lb Lab, gm F bb l L La b ,; ml , " ,;' , U 1 Water 317.07 317.07 0.906 317.07 Base Fluid 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 Supreme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 pH Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 Asphasol Supreme 4.00 4.00 0.010 3.33 Wellbore Stability 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Congor 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 20 20.00 20.00 0.020 7.14 Bridging Agent 11 MI WATE 30.24 30.24 0.021 7.20 Mud Weight 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Oxygen Scavenger For torque and slip! strike issues maintain up to 5% of the following: 13 Lubetex 14.00 14.00 0.041 14.43 Lubricity Total I 394.8 394.8 Estimated Volume Usages 2385 bbls Calculated Mud Weight 9. Total Chloride 29600 Mi SWAG" • Marathon Oil Company Well Name: KDU 9 JEr Location: Kenai, Alaska. Optibridge for Sterling Sands Operator: Marathon Max Permeability : 1500 mDarcy Mj SA C ___ 0 PTI B RI DG E * Well Name: KDU 9 Sand Control Device : -� Location: Kenai, Alaska © 1999 - 2007 M -I L.L.C. - All Rights Reserved Comments: Optimum Blend Optimum Bridging Agent Biend 1.0 D10- D50 -D90 • Target D10 Target l Blend: 1.5 I 2.0 microns 0.9 - -- _Blend D50 Target I Blend: 38.7 1 35.7 microns D90 Target l Blend: 125.5 / 167.0 microns 0.8 - .___ . — -- i — -- --- -_. -- -- Optimum Blend for 0 to 100 % CPS Range Brand Name Bridging Agent(Iblbbll Vol % Ce Sate -Carb 20 9.0 29.89 O c 0.7-- --- - - - - - - - - - - -- -- - - - - - - - - - -; — I De Safe -Carb 40 (M) 21.0 70.11 E= Safe -Carb 250 (C) 0.0 0.00 a 0.6- tl 0.5- C . ' 0.4 29.9% 0 v 0.3 0.2 — — D 70.1% 0.1- Simulation Accuracy Calcium Carbonate added : 30 lb/bbl 0 •i ••••i Avg Error 0 - 100 % CPS Range: 1.52 % 1x10 1x10 1x10 1x10 1x10 1x10 1x10 Max Error 0 -100 % CPS Range : 10.67 % Particle Size (microns) Mi SWAC 4 �-5 Marathon Oil Company IFE Well Name: KDU 9 Location: Kenai, Alaska. Interval Summary — 8 1/2" hole 5631- 9001' Drilling Fluid System Flo -Pro Key Products Flo -Vis / KCl / Myacide / SafeCarb 20/40 / MI WATE / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / Klagard / Lubetex / Asphasol Supreme / G Seal Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 230 - 275 mesh Potential Problems Lost circulation, coal sloughing, solids build -up, gas kick, tight hole conditions, wellbore breathing. Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) (cps) (m1/30min) ( %) 5631 -9001' 11 -12.0 12 -18 30- 40,000 5 -7 +/ -9.5 +/ -5% ➢ Use one rig pit for drilling out intermediate casing. In other rig pits, build new Flo -Pro fluid using the enclosed formula. D. Maintain 3 — 5% Lubetex in mud system. Verify concentration thru OneTrax and retort. ➢ If running coals become a problem, treat with a 2 PPB each of Asphasol Supreme and Resinex. D. If connection gas increases and background gas remains high, mud weight should be increased accordingly. Watch for wellbore breathing issues with increased mud weight. Use Gseal (5 — 10 ppb) if breathing is identified. ➢ Estimated volume usage for interval — 1533 barrels. ➢ Estimated haul off volume — 1879 barrels. ➢ Condition mud prior to running 7" liner. M�SWA • r 7,-, IFE Marathon Oil Company Well Name: KDU 9 Location: Kenai, Alaska. Virtual Hydraulics SnapShot 8 1/2" Hole 1 i 'd„ sr ©1995 -2006 M- IL.L.C. KDU 9 Production interval MD:9001 ft Operator:Marathon __ :�+"' 'MaMOfM- u.L.c. 450 GPM TVD:8667 ft Well Name: KDU 9 VIRTU HYDRAULICS SnapShot" Bit Location:KenaiPeninsula Date :5/2 5!280008 CountryAlaska Depth Geometry Angle Density Va Hole Clean Pressure Dlstrlbutbn (ft) MDITVD CsgODIID ( °) (Iblgaq (fthnkt) Index ( %) 0) (in) a 45 90 11.4 11 11.8 12.0 0 160 320 VG G F P Bit =25.8 Ann =9.3 DS =84.9 500 j - I I I i ■ . 10 sao I • 2000 D riBng Fluid 2 966 FLOPRO NT 1 Mud Weight 11.5 lb/gal 3000 _ - Test Temp 100 °F System Data 3500 1 Flow Rate 450 gal/min 4000 I i Penetration Rate 70 ftf,r Rotary Speed 80 rpm 4500' 1 • - - - - -- + - - -- 1 -. — : Weight on 68 10 10001b • 9600 1 Bit Nozzles 0.7781n° 5960 _ -_ ; - : . . 1 _ i Pressure Losses 5630 A 1 9.625 5630 1— Modified Power Law 6000 ; j f ; Dr0lString 894 psi MWD 250 psi 6500, , Motor 150 psi . i Bit 356 psi 7000 i __- _. -,_ -, I Bit OnlOff 100 psi — -- -- - - t— Annulus 128 psi • 7500 __,_____- _ ! -" + Surface Equip 29 psi I U -Tube Effect 35 psi 8000 : N - - -- TotalSystem 1942 psi I ESD ECD +Cut 8500 111 ■ ( I CsgShoe 11.57 11.81 11.89 I , TD 11.5711.8511.93 9000. 9001 8.500 e 8667 ! • ECD n E a:. 1.0 VRDH - Version 3.1 F35 a F70 (2002) 9500 m r 4� w -0- I _.__...._____ Lam Math ] L5_ BerD, Flle- ION9.Me9 F70FL0 Mi SWACSI.., . 1 Marathon Oil Company — =0.., - - ;=,7: ,, A 'FE Well Name: KDU 9 Location: Kenai, Alaska. Hole Cleaning Index 8 1/2" Hole MisiniAci� - ©1995- 2006 IL.L.C. K D U 9 Production Interval MD:9001 ft Operator:Marathon " �'' °Ot M - �.� TVD:8638 ft WellName: KDU 9 -- _ 450 GPM VIRTUAL RYDRAU.ICS" VRDR' BkS e: Da te:5 @/2 in Location:KenaiPeninsula 82008 Country:Alaska Hole Cleaning too Marathon KDU 9 I - ROP 50 ft /hr i — ROP 75 ft /hr i i — ROP 100 ft /hr i i Poor Hole Cleaning i i — ROP 125ft /hr 0.75 — ROP 150 ft /hr — v w Fair Hole Cleaning C . , iC 0.50 4) V a) O i _ ;'. • • . Cleaning 0.25' Very Good Hole Cleaning --.. i 1 i __. - -.- -_, -- i – i - - -- ` --_ _ - -- 400 420 440 460 480 500 520 540 560 580 600 Flow Rate (gal /min) Mi SWAG 0 0 41 Marathon Oil Company --,- .....) IFE Well Name: KDU 9 Location: Kenai, Alaska. Fluid Formula - 8 1/2" hole Mi KDU 9 Production Interval Mud Formula M -I L.L.C. 8.5" Interval from 5631 - 9001' Input Description KDU 9 Production Interval Mud Weight ; . 11.5 'rehydrated Gel No Weight Material Code MI WATE iydrated Gel Conc, Weight Material S 4.2 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,mi 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 1.50 1.50 0.040 _ 1.00 Viscosity 4 Polypac Supreme 2.00 2.00 0.050 1.50 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 pH Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 Asphasol Supreme 4.00 4.00 0.010 3.33 Wellbore Stability 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Congor 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 20/40 10.00 10.00 0.010 3.57 Bridging Agent 11 MI WATE 150.00 150.00 0.051 36.72 Mud Weight 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Oxygen Scavenger Maintain add up to 5% of the following: 13 Lubetex I 14.00 1 14.00 1 0.041 1 14.43 Lubricity I I 1 Mud weight increases are possible with increased connection and background gas reading For every .5 ppg increase in mud weight, 3000 lbs of Barite per 100 bbls mud are required Total I 527.99 527.99 Estimated Volume Usage' 853 Calculated Mud Weight 11.5 Total Chloride 29600 MiSWAC_� • _S Marathon Oil Company IFE Well Name: KDU 9 Location: Kenai, Alaska. Interval Summary — 6 1/8" hole 9001 - 9769' Drilling Fluid System Flo -Pro Key Products Flo -Vis / DualFlo / KC1 / Greencide / SafeCarb 20/40 / MI Bar / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / Klagard / Lubetex / Asphasol Supreme / G Seal Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 230 - 275 mesh Potential Problems Lost circulation, coal sloughing, solids build -up, gas kick, tight hole conditions. Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) (cps) (ml/30min) ( %) 9001 - 9769' 9.2 — 9.4 10 —14 30 - 40,000 5 - 7 +/- 9.5 +/- 5% ➢ Use one rig pit for drilling out 7" casing shoe. In other rig pits, build new Flo -Pro fluid using the enclosed formula. If possible, reduce mud weight from 11.5 ppg with solids van and recondition. ➢ Maintain 3 — 5% Lubetex in mud system. Verify concentration thru OneTrax concentrations and retort. ➢ If running coals become a problem, treat with a 2 PPB each of Asphasol Supreme and Resinex. ➢ If connection gas increases and background gas remains high, mud weight should be increased accordingly. Use Gseal (5 — 10 ppb) if breathing is identified. ➢ Estimated volume usage for interval — 853 barrels. ➢ Estimated haul off volume —1070 barrels. ➢ Condition mud prior to running 4 1/2" liner. Mi SWAC_Cy� • 1 IIIIIS Marathon Oil Company IFIE Well Name: KDU 9 Location: Kenai, Alaska. Mi SW KDU 9 Production Interval Mud Formula M -I L.L.C. 6.125" Interval from 9001 - 9768' Input I Description KDU 9 Production Interval Mud Weight 9.2 Weight Material Code MI WATE 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 1.50 1.50 0.040 1.00 Viscosity 4 PolyPac UL 2.00 2.00 0.004 1.43 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 pH Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 Asphasol Supreme 4.00 4.00 0.010 3.33 Welibore Stability 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Congor 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 20/40 10.00 10.00 0.010 3.57 Bridging Agent 11 MI WATE 25.00 25.00 0.017 6.12 Mud Weight 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Oxygen Scavenger If torque becomes a problem add up to 5% of the following: 13 Lubetex 1 14.00 1 14.00 1 0.041 1 14.43 1 Lubricity 1 1 1 1 Total 1 411.6 411.6 Estimated Volume Usage' 853 Calculated Mud Weight 9.2 Total Chloride 29600 Mi SWAB • • Marathon Oil Company 'FE Well Name: KDU 9 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. MiSWAC • • AM Marathon Oil Company � IFE Well Name: KDU 9 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammabilit `eactivi PPE M -I BAR Weighting Agent *1 0 M "' 0 r'� r E h�«�e M -I GEL Viscosity control *1 1 0 . E GELEX Bentonite Extender 1 1 1 ¢ E FLOVIS Viscosifier 1 1 , ' E DUAL - FLO Modified Starch 1 POLYPAC Fluid Loss Reducer *1 1 .. E HEC Loss Circulation Material 1 1 E Safe - Carb 10,40,250 Bridging and weighting agent *1 0 g E Nut Plug Loss Circulation Material *1 1 ' ` 1 - E M -I Seal F, M, C Loss circulation Material *1 1 -1- --pa = E Mix II F,M,C Loss circulation Material *1 1 Wi r E DESCO CF Dispersant 1 1 , -o ` E SALT (Solar) Densifier 1 0 i E POTASSIUM CHLORIDE Shale Inhibitor 1 0 rerv E CAUSTIC SODA Alkalinity control 3 0 sr,, X BORAX Inorganic Borate 1 0 - E SAPP Sodium Pyrophosphate *1 0 i E SODA ASH Alkalinity control 1 1 Y E SODIUM BICARBONATE Alkalinity control 1 0 E CITRIC ACID pH Adjuster 1 0 > 'r E BIOBAN BP -PLUS Biocide *2 0 J GREEN CIDE 25G - Biocide 3 0 i J DEFOAM X - Defoamer 1 1 J G -SEAL Sized graphite LCM 1 1 E SteelLube Lubricant 1 1 J LUBE TEX Lubricant 1 1 J D -D CWT Detergent 2 1 , :- _ - J r �� Concor 404 Corrosion Inhibitor 1 1 J SAFEKLEEN Drilling fluid additive 1 1 kit J Asphasol Supreme Shale Inhibitor 1 1 J Sodium Meta Bisulfate Oxygen Scavenger . 1 a J MI SWA 9 • • Marathon Oil Company c' Well Name: KDU 9 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 Mi SWACQy • Marathon Oil Company IFE Well Name: KDU 9 Location: Kenai, Alaska. Contacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga @marathonoil.com 907 565 -3032 907 231 -0663 Marathon Superintendent Will Tank Drilling Engineer wjtank @marathonoil.com 713 296 -3273 713 203 -8398 Marathon Jim Dwyer Project Engineer jdwyer @miswaco.com 907 646 -3233 907 317 -4556 MI SWACO Bob Myles Warehouse Manager rmyles @miswaco.com 907 776 -8722 907 252 -4218 MI SWACO Oliver Amend Field Engineer Miswacogdrl @gmail.com 907 283 -0895 907 398 -9474 MI SWACO (home) Jim Brown Field Engineer Miswacogdrl @gmail.com 907 398 -8500 MI SWACO John Nicholson / Drilling Foremen alaska_drilling @marathonoil 907 283 -1312 Roland Lawson .com Marathon Responsibilities ➢ MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M -I field engineers. ➢ Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. ➢ Field Engineers will monitor and supervise product inventory to include re- palletizing any products for shipment to other locations at the end of the well. ➢ Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). ➢ Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and /or utilization of any third party service. • • n A4K,A SARAH PALM, GOVERNOR DEPARTMENT OF NATURAL RESOURCES DIVISION OF COASTAL AND OCEAN MANAGEMENT http: //www. alaskacoast state. ak. us f SOUTHCENTRAL REGIONAL OFFICE C,iCENTRAL OFFICE CI PIPELINE COORDINATOR'S OFFICE 550 W 7"' AVENUE SUITE 705 P.O. Box 110030 411 WEST 4 AVENUE, SUITE 2C ANCHORAGE, ALASKA 99501 JUNEAU, ALASKA 99801 -0030 ANCHORAGE, ALASKA 99501 -2343 P.O. Box 111030 PH: (907) 465 -3562 FAX.. (907) 465-3075 PH: (907) 257 -1351 /FAX (907) 272 -3829 PH: (907) 269 -7470 FAX: (907) 269 -3891 May 30, 2008 Mr. Charles A. Underwood Marathon Oil Company 3201 C Street P.O. Box 196168 Anchorage, Alaska 99519 -6168 Subject: Marathon Kenai Gas Field, Well KDU -9 State ID No.: 2008- 05040G Proposal Meets Criteria for Expedited ACMP Approval Dear Mr. Underwood: The Division of Coastal and Ocean Management (DCOM) has reviewed the Coastal Project Questionnaire (CPQ) and other pertinent information regarding the above referenced project. The proposed project has been assigned state I.D. file number # ID2008- 05040G; please refer to this I.D. number in future correspondence with the DCOM on this project. Marathon proposes to drill gas well, Kenai Deep Unit No.9 (KDU 9) within the Kenai Gas Field Unit (KGF). Well KDU -9 is a replacement well for the original KBU 41 -6x project proposed earlier in 2008 that was to be drilled from the same location on Pad 41 -7. Pad 41 -7 is an existing natural gas production pad, which was expanded in 2003 for the purpose of drilling additional gas wells. Drilling the new well would further increase the ability to recover known gas reserves and enhance gas deliverability to the Kenai Peninsula distribution system. I have circulated the modification review packet to the Alaska Departments of Fish and Game and Natural Resources, the US Army Corps of Engineers and the Kenai Peninsula Borough coastal district. Based upon the information you supplied, the proposed modification project does not require further review for consistency with the Alaska Coastal Management Program (ACMP) because the proposed activities do not require the issuance of any state or federal permits citied in the ACMP's "A -B -C List." However, please note that any stipulations and advisories included in this project's original consistency determination still apply. You are not relieved from obtaining required permits and approvals from state federal or local agencies, before you begin the proposed work. Nothing in this letter excuses you from compliance with other statutes, ordinances, or regulations that may affect any proposed work. "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." • • Marathon Kenai Gas Field, Well KDU -9 Page 2 This decision is ONLY for the proposed project as described. If there are any other changes to the proposed project, including its intended use, prior to or during its siting, construction, or operation, contact this office immediately to determine if further review and approval of the revised project is necessary. Please contact me at (907) 269 -7472, or email josephina .delgado- plikatna,alaska.gov if you have any questions. Sincerely, /s/ Jodi Plikat Project Review Coordinator cc. Patricia Bettis, ADNR/DML &W/WS Kellie Westphal; Adele Lee, ADNR/ML &W Lee Mckinley, ADNR/OHMP Nina Brudie, ADNR/DCOM Margie Goatley, ADNR/DPOR/SHPO Matt Rader; Brian Havelock, ADNR/DOG Rod Combellick, ADNR/DGGS Ellen Simpson, ADF &G /DSF Mark Fink, ADF &G /DSF Jane Williamson, AOGCC Fran Roche, ADEC Andy Mitzel, US Army COE Gary Williams, Kenai Peninsula Borough • 1 TRANSMITTAL LETTER CHECKLIST WELL NAME 9 PTD# ..?08706 a r Development, Service Exploratory Stratigraphic Test Non - Conventional Well FIELD: /1.214 ,%eZI POOL: 73/.0/1/4"A' /404 Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce / inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 1/11/2008 WELL PERMIT CHECKLIST Field & Pool KENAI, TYONEK GAS - 448570 Well Name: KENAI DEEP UNIT 9 Program DEV Well bore seg ❑ PTD#: 2081060 Company MARATHON OIL CO Initial Class/Type _DEV / PEND GeoArea 820 Unit 51120 On /Off Shore On Annular Disposal ❑ Administration 1 Permit fee attached NA 2 Lease number appropriate Yes 3 Unique well name and number Yes 4 Well located in a definedpool Yes Kenai Gas Field / Tyonek Deep Pool. 5 Weil located proper distance front drilling unit boundary Yes 6 Well located proper distance from other wells Yes 7 Sufficient acreage_ayailable in_drilling unit Yes 2560 acres. 8 If deviated, is wellbore plat_inciuded Yes 9 Operator only affected party Yes 10 Operator has_appropriate bond in force Yes Blanket Bond # 5194234. 11 Permit can be issued without conservation order Yes Appr Date 12 Permit can be issued without adrninistrativ_e_approval Yes rmit approved before 1- wait Yes 13 Can e _ _ be app o ed be o e _ 5 day wa P ACS 6/19/2008 W 14 Well located within area and_strata authorized by_ Injection Order # (put IO# in_comments) (For NA 15 All wells_within 1 /4_mil_e 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 1 17 Noncomen, gas_conforms to AS31,05 030(j.1_.A),(j.2.A -D) NA Engineering 18 Conductor string_provided Yes 19 Surface casingprotects all_knQwn USDWs Yes Aquifers ? 1300' tvd exempted, 40 147.102 (b)(1)(iij). 20 CMT vol adequate to circuiate_on conductor & surf csg Yes 21 CMT v_ol adequate_ to tie -in Jong string to surf csg NA Both liners will be fully_cemented. 9 -5/$" intended to be cemented above Sterling. 22 CMT_will coverall known productive horizons Yes 23 Casing designs adequate for C,_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 well(s). 25 if a_ re- drill, has_ a 10403 for abandonment been approved NA 26 Adequate wellbore separation proposed Yes Proximity analysis performed. Traveling cylinder path calculated, No issues. 27 lf_diverter required, does it meet regulations Yes Appr Date 28 Drilling fluid program schematic & equiplist adequate Yes Maximum expected formation pressure 12.0 EMW in 8.5" hole. MW planned 12,0 ppg or as needed. TEM 6/23/2008 29 BOPEs,_do they meet regulation Yes • AWYA 30 BOPE_press rating appropriate; test to (put prig in comments) Yes MASP calculated at 3165 psi w 70% mud -30% gas. With gas only 4541 psi._ 5000 psi BOP_test proposed. 31 Choke manifold complies w /API RP -53 (May 84) Yes 32 Work will occur without operation shutdown Yes Completion to beperformed without rig per usual practice. 33 is presence of H2S gas probable NA H2S is not known in CI gas wells. Rig has sensors and alarms. 34 Mechanical_condition of was within AOR verified (For service well only) NA Geology 35 Permit can be issued w/o hydrogen sulfide measures Yes 36 Data_presented on potential overpressurezones Yes Appr Date 37 Seismic analysis of shallow gas zones NA ACS 6/19/2008 38 Seabed condition survey (if off - shore) NA 39 Contact name /phone for weekiy_progress reports [exploratory only] Yes Will Tank - 713 - 296 -3273 Geologic Engineering Date: Date _ Date Commissioner: Coi issioner • 2(- 1' 4‘-06r S 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. i 1 1 • alik MARATHON KDU 9 SEC 7 - T4N - R11 W - SM July 14, 2008 — August 05, 2008 a k, , s • I � Jil '' ',I, I, , '' ,',' t, i .. . ' ,fir +..-1 �,._ �... • ..c q `` «�a `I' .:- ,,f, Nor -,,,, 'ti , -c i - _ , _l° . ly,'ri • Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist • El EPOCH - / #i a(f "Q" MARATHON OIL COMPANY KDU 9 S 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. LITHOLOGY REVIEW 4 3.2. SAMPLING PROGRAM AND DISTRIBUTION 10 4. DRILLING DATA 11 4.1. DAILY ACTIVITY SUMMARY 11 4.2. SURVEY RECORD 23 4.3. MUD RECORD 27 4.4. BIT RECORD 29 4.5. DRILLING PROGRESS CHART 30 5. MORNING REPORTS 31 Enclosures: 2" = 100' Formation Log MD 2" = 100' Formation Log TVD 2" = 100' Drilling Dynamics MD 2" = 100' Drilling Dynamics TVD 2" = 100' Gas Ratio Log MD • EPOCH M MARATHON OIL COMPANY KDU 9 • 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 immediate pre- shearing of Standard Air Drive Trap Mounted In retum 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 Problematic through most of well. Erratic function determined to be at the Pyle Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 10 days National 32 pin plug supplied by Marathon. Plug bypassed and proper functioning restored with new plug. Drill string torque Hydraulic Pressure Cell 0 RPM sensor not repaired before drilling out at 5675'. Initial repair attempts failed. Top drive rotary (RPM) Externally Mounted Magnetic Proximity 15 days se sorwas working but not • Sensor adjusted close enough to proximity switch. Rig elected to not correct RPM Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From 0 Flow Paddle Pit volumes Ball and probe sensor 0 Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Mud Engineer's work station HP COMPAQ 0 Living quarter's work station HP COMPAQ 0 Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL KDU 9 Unit Number: ML006, Years Days Sample Catchers/ Days Days Mudloggers Experience at Trainees at Technician at well well well Craig Silva 30 32 Emil Opitz 25 Steve Forrest 2 Ralph Winkelman 19 17 Rick Frederick 5 Allen Williams 1 • James Foradas 10 EPOCH 2 M MARATHON OIL COMPANY KDU 9 2. GENERAL WELL DETAILS IIII 2.1. OBJECTIVES The objective of KDU 9 is to drill and log a multiple zone gas well in the Kenai Gas Field, with a minimum of hole problems or other concerns. A standard completion will be used. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: KDU 9 Field: Kenai Gas Field County: Kenai Peninsula Borough State: Alaska Company Representatives: Dan Byrd Mitch Burns John Nicholson Rowland Lawson Location: 158' FNL, 1057' FEL, Sec 7 T4N R11W SM, X= 274,850.655, Y= 2,361,856.775 Classification: Gas, Multiple Zone API #: 50- 133 - 20578 -00 -00 Permit* 208 - 1060 Activity Code: (WBS #s) DD.08.17777.CAP.DRL Rig Name / Type: Glacier #1 / Land / Double Elevation: Ground, RKB 66.0'GL, 87.0' RT Primary Targets: / Target Depths: Tyonek D1 8984' MD, (8671' TVD), Tyonek D2 9129' MD, (8816' TVD) i a d Date: mary Targets: / Target Depths � Tyonek D5 9700' MD, (9387' TVD) July 14, 2008 Total Depth 9850' Total Depth Formation: Tyonek Total Depth Date: August 5, 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 and MFT on wireline. 2.3. HOLE DATA KDU 9 Hole Maximum Depth T.D. Mud Deviation Shoe Depth F.I.T. Section MD SSTVD Formation Wei ( °inc) Casing MD SSTVD EMW (ppg) 16" 1685' 1529.13' Sterling 9.5 30.75 13 3/8" 1675' 1520.55 13.0 12 %4' 5675' 5274.75 Beluga 9.7 0.59 9 5/8" 5668' 5266.46 14.2 8 1 /2" 8955' 8554.67 Tyonek 12.2 0.22 7" 8955' 8553.67 13.0 6 %a" 9850' 9449.65 Tyonek 10.6 0.31 4 '/ 2" 9845' 9443.65 Standard Y Completion • Li EPOCH 3 M MARATHON OIL COMPANY KDU 9 3. GEOLOGICAL DATA • 3.1. LITHOLOGY REVIEW Tuffaceous Claystone/Tuffaceous Siltstone (5680'- 5800') = light gray to medium light gray with very light brownish gray secondary hues; very soft to slightly firm; irregular, rounded cuttings to shapeless, globular; silty to clayey texture; earthy to waxy luster; moderate to very soluble; expansive when hydrated; poor to good cohesiveness; poor to fair adhesiveness; trace very dark brown to black micro -thin carbonaceous laminations and inclusions; non calcareous. Sand /Sandstone (5740'- 5880') = medium Tight gray to medium gray overall with a moderate to strong salt and pepper appearance; individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray with light greenish gray secondary hues, black, white and trace pale rose; very fine upper to coarse upper, dominantly fine upper to medium lower; angular to subangular; fair to good sorting in fine range, poorly sorted in coarse; disaggregated with trace light greenish gray sandstone; hard; very fine to medium grain; angular cuttings; non to slightly calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (5820'- 5940') = light gray to light medium gray with light yellowish gray to light brownish gray secondary hues; very soft to slightly firm; shapeless, globular to rounded wedge shaped cuttings; silty to clayey texture; dull, earthy to slightly waxy luster; slight to moderately soluble; hydrophilic; poor to fair adhesiveness and cohesiveness; trace dark brown to black micro -thin carbonaceous laminations and inclusions; non calcareous. Sand /Conglomeratic Sand (5900'- 6020') = medium light gray to medium greenish gray overall with individual grains dominantly translucent to clear quartz and volcanic glass, white, light to medium gray, dark gray to dark greenish gray, black; dominantly fine upper to medium upper, but ranges from very fine upper to very coarse upper to pebble; angular to subangular with occasional broken fragments; poorly sorted; dominantly disaggregated with trace medium to dark gray to greenish gray sandstone; very hard; fine to medium grain; angular, broken fragments; non to slightly calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (5940'- 6300') = sediments derived from air fall volcanic ash that have been reworked, redeposited, mixed and remixed to varying degree, yet retain glass shards, microshards, mineral associations and distinctive textural features indicative of volcanic origins; differentiated tuffaceous lithologies (which include volcanic ash, tuffaceous shale, tuffaceous sandstone and calcareous tuff on the mudlog) are often localized fractions - zones -beds of a greater non - specific tuffaceous mudstones and transitional particle -size groups in massive fining upward- downward sequences; tuffaceous lithologies are closely gradational and share many descriptive characteristics; many of the tuffaceous clays have been modified by devitrification, chemical alteration, weathering and mineral replacement; note that there is generally no clear separation between volcanic ash and tuffaceous clay on the mudlog, but ash is generally more homogeneous, has higher lightness values, greater shard abundance, appears "fresher" overall with less obvious reworking or disturbance, and occasionally retains spotty remnants of its original air fall vitriclastic texture before sediment mixing and chemical changes; dominant light grayish brown to medium gray; many subtle shifting variations of other gray and brown primary colors and secondary hues; clayey to silty to ashy to various soft matte textures; often has gritty texture when coarse silty to sandy; many mixed and mottled textures; soft to slightly brittle to moderately brittle or firm; clays are pervasively hydrophilic, soluble in part, have moderate adhesiveness and moderate to good cohesiveness; locally common to abundant micro -thin coal /carbonaceous laminations and particles. • El EPOCH 4 M MARATHON OIL COMPANY KDU 9 Sand /SandstonelTuffaceous Sandstone /Conglomeratic Sand (6020'- 6600') = medium dark gray to medium gray; localized patchy light medium gray; faint to locally moderate Tight olive gray secondary hues and occasional very faint light brownish gray secondary hue; some has appearance of slightly "dirty" pepper with specks of salt; fine lower to granule; very fine fraction nearly all glass shards winnowed p very from volcanic ash; moderate to marginally poor sorting overall, but uppermost zones of massive sand sections are occasionally moderately well sorted; most grains in fine lower to medium upper range, but range upward in size to coarse and larger in basal conglomeratic zones of massive sands; angular to subangular and discoidal to subdiscoidal are dominant, but constant trace to spotty fraction of rounded to subrounded and subspherical grains; note that some conglomerate clasts are well rounded; generally very dominant disaggregated grains, but tuffaceous sandstone and other soft clay- matrix supported are locally dominant; trace to rare grain supported with calcite cementation; note abundant sandstone (both matrix and grain supported) with complex mix of inter -grain material that includes soft clay - silt -ash, calcite - silica hard cements, powdery calcite, devitrified volcanic ash, "packed" non - devitrified and devitrified glass shards, calcareous tuff and various alteration products. Sand/ Sandstone/Tuffaceous Sandstone /Conglomeratic Sand (6020'- 6600') = all compositional graywacke ( >30% lithics); estimate 30 -60% quartz and volcanic glass, trace feldspar, 5 -20% various cryptosilica (chalcedony, chert) and other non - differentiated silica; 30 -60% lithics and mafic minerals; note that 75 -80% of all lithics are medium to medium dark gray (medium grade metamorphic) schistose phyllite rock fragments, often with a very distinctive appearance due to partial surface weathering; 10 -15% of lithics are dark gray to black (medium grade meta) argillite rock fragments closely associated by source with the phyllites; 5 -15% of lithics are diverse overall, but dominated by light green, grayish green, and variegated green low grade metamorphic greenstone rock fragments; except for augite and biotite, mafic minerals are not readily identifiable but consistently present as translucent to opaque black, brownish black, grayish brown, greenish brown, and dark greenish gray silicates; also note black to slightly silvery black opaque metallic minerals, often as micro - grains, associated with the volcanic ash; 75 -80% of the quartz is colorless to very pale gray to very pale brown and translucent, 20 -25% of the quartz and nearly 100% of the volcanic glass is colorless and transparent. Coal /Carbonaceous Shale (6470'- 6800') = black to brownish black to very dusky brown; mostly lower grade lignite and very carbonaceous tuffaceous mudstones in transition to becoming coals; brittle to firm; note some larger cuttings pieces with coal and carbonaceous shale very thinly interbedded with each other and other lithologies; most coal has very dense matte texture rather than a smooth texture; note that the higher grade lignite is almost always with a dull lustre, non - vitreous and non - resinous, and generally fragile rather than tough; mostly irregular, thin planar fracture; mostly occurs as very thin laminations and particles with the tuffaceous claystone - siltstone; note common clastic coal fragments in some of the coarser sand zones. Tuffaceous Claystone/Tuffaceous Siltstone (6300'- 6900') = continued pervasive clays and silts from reworked volcanic ash; is matrix support for 95% of the sandstones; dominantly light grayish brown to medium gray; also many subtle variations of other gray and brown primary colors and secondary hues; clayey to silty to ashy to various soft matte textures; note rare remnant vitriclastic textures; gritty textures when sandy; many mixed and mottled textures; soft to slightly brittle to moderately brittle or firm; clays are pervasively hydrophilic, soluble in part, have moderate adhesiveness and moderate to good cohesiveness; locally common to abundant micro -thin coal /carbonaceous laminations and particles. Sand /Sandstone/Tuffaceous Sandstone (6840'- 6920') = medium bluish gray to medium dark gray overall with individual grains dominantly translucent to clear quartz and volcanic glass, light to medium gray, trace dark gray to black very fine upper to rare very coarse upper, dominantly fine grain; angular to subangular; moderately well sorted in fine, poorly sorted in medium to coarse; dominantly disaggregated with trace medium to dark gray to greenish gray, fine grain sandstone; hard; very calcareous; trace light gray to light yellowish gray ashy sandstone; very fine grain; fragile slightly calcareous; scattered light gray ashy tuff; fragile; occasionally acts as a supporting matrix for loose sands. • El I EPOCH 5 M MARATHON OIL COMPANY KDU 9 Tuffaceous Claystone/Tuffaceous Siltstone (6920'- 7060') = light gray to medium light gray with light S yellowish gray and light pinkish gray secondary hues; very soft to slightly firm; irregular, shapeless cuttings dominant with trace pdc bit action "scooped " appearance; silty to clayey to slightly gritty texture; dull to waxy to slightly sparkly luster; moderate to very soluble; expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; trace to common very dark brown to black micro -thin laminations and particles; non calcareous; trace light gray ashy tuff; trace light yellowish brown siltstone commonly grades to silty sandstone/ sandy siltstone; fragile; slight to moderately calcareous; trace glass shards. Sand (7020'- 7140') = medium to medium dark gray to medium bluish gray overall with individual grains dominantly Tight to medium gray, clear to translucent quartz and volcanic glass, dark gray to black and trace white; very fine lower trace coarse lower, dominantly fine grain; angular to subangular with trace subrounded coarse lithics; poor to fair sorting; dominantly disaggregated; trace black carbonaceous material /shale. Coal /Carbonaceous Shale (7000'- 7200') = note present in trace amounts in dominantly claystone and sand formation; very dark brown to black; firm to malleable; platy to splintery; earthy luster; gritty to matte texture; poorly developed; rare trace visible outgassing from larger fragments. Tuffaceous Claystone/Tuffaceous Siltstone (7120'- 7260') = light gray to medium light gray with light yellowish gray and light pinkish gray secondary hues; very soft to slightly firm; irregular, shapeless cuttings dominant; silty to clayey to slightly gritty texture; dull to waxy to slightly sparkly luster; moderate to very soluble; expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; trace to common very dark brown to black micro -thin laminations and particles; non calcareous. Sand /Sandstone (7200'- 7300') = medium to medium dark gray with medium bluish gray secondary hues overall with individual grains dominantly translucent to clear quartz and volcanic glass, light to medium • gray, trace dark gray to black very fine upper to coarse upper, dominantly fine grain; angular to subangular; moderately well sorted; dominantly disaggregated with scattered medium gray sandstone; very fine to medium grain; hard; shattered fragments; moderate to very calcareous cement. Tuffaceous Claystone/Tuffaceous Siltstone (7280'- 7400') = light gray to medium light gray with light yellowish gray and light brownish gray secondary hues; soft to firm; very sticky; irregular, shapeless cuttings dominant with trace "scooped " appearance; silty to clayey to slightly gritty texture; dull to waxy to slightly sparkly luster; moderate to very soluble; expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; trace dark brown to black micro -thin carbonaceous laminations and particles. Sand /Sandstone/Tuffaceous Sandstone (7300'- 7600') = note several changes in the sandstone and adjacent rocks in this interval. From 7300' to 7420': the color continues to be a fairly homogeneous medium gray to medium dark gray with faint bluish gray secondary hues; the overall sample appears clayey, with abundant rounded small lumps of clay scattered throughout; the clay often has only spotty discernible glass shards and is close to being non - tuffaceous; most sandstone is matrix supported by the same darker gray slightly bluish clays, and another large fraction is supported by a much lighter colored ashier clay; grain supported sandstone, also a darker gray color, is spotty, usually calcareous and fragile. After 7420': the overall dark gray continues, but secondary coloration changes from bluish gray to faint light brownish gray and pale yellowish brown; the sand is finer and largely disaggregated and grains appear more equi - dimensional; consolidated sandstone is rarely supported by darker gray clay and now mostly supported by lighter gray ashier clays; the fraction of grain supported pieces significantly increases as well, and more often is tough and marginally hard rather fragile; though most sandstone is calcite cemented, many pieces are silica cemented; the overall gray color becomes increasingly lighter and the faint yellowish secondary coloration becomes more pervasive from 7420' to 7510'. After 7510': overall color is slightly higher lightness value, becoming dominant medium light gray to medium gray and many consolidated pieces have light gray to nearly white ash as the supporting matrix; the faint yellowish brown secondary hues become even more faint to nearly absent; there is increasingly greater contrast between darker and lighter grains as inter -grain silt appears to decrease; also note that though compositional graywacke is still dominant, spotty consolidated pieces of sandstone range to lithic arenite. €I EPOCH 6 1001 MARATHON OIL COMPANY KDU 9 Sand/ Sandstone/Tuffaceous Sandstone (7600'- 7820') = medium light gray to medium gray; faint to • locally strong light olive gray, and very faint pale yellowish brown secondary hues; local pepper with salt appearance when lithics percentage increases; very fine lower to medium upper; most is moderately well to moderately sorted in very fine upper to medium lower range and dominant group is fine lower to fine upper; very fine dominated by glass shards winnowed from volcanic ash; evident fining upward; angular to subangular, but note very abundant equi - dimensional grains that appear round on first inspection but show sharpness on higher magnification; dominantly disaggregated but locally abundant consolidated pieces; sandstones are mostly matrix supported by tuffaceous clay and volcanic ash; spotty tuffaceous sandstone with fairly "fresh" inter -grain ash that displays abundant microshards; spotty harder consolidated grain supported sandstone with calcareous and siliceous cementation; inter -grain material is occasionally complex with mixed cements and micro - sediments; compositional graywacke to Iithic arenite; estimate 50 -80% quartz and glass trace feldspar, 5 -15% cryptosilica (chert, chalcedony) and non - differentiated silica; 25 -40% lithics and mafic minerals with increasing greenstones and lighter mafics. Sandstone/Tuffaceous Sandstone (7820'- 7920') = significant change in overall appearance of samples after 7820'. Note very abundant fine ashy consolidated sandstone; becoming light gray to medium light gray with increasing quartz; faint light olive gray secondary hue to no secondary colorization; appears improved salt and pepper when disaggregated; dominantly moderately well sorted in fine lower to fine upper; angular to subangular; consolidated sandstone abundantly grain supported with weak calcareous cementing or matrix supported by volcanic ash; note abundant microshards in tuffaceous sandstone; also note "streaks" of micro mica in the more clay -rich sandstone; rare Iithic quartz arenite to sub - Iithic arenite to Iithic arenite; common greenstones. Tuffaceous Claystone/Tuffaceous Siltstone (7900'- 8040') = medium gray to bluish gray with light brown to light brownish gray secondary hues; soft to slightly firm; moderately sticky; irregular to shapeless, globular cuttings silty to clayey to slightly gritty texture; dull to waxy to slightly sparkly luster; scattered visible microshards; moderately soluble; slight to moderately expansive when hydrated; poor to • fair cohesiveness; poor to good adhesiveness; trace to common dark brown to black micro -thin carbonaceous laminations and inclusions; non to slightly calcareous; trace thin coal beds. Sand / Sandstone/Tuffaceous Sandstone ( 8000'- 8140') = medium gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray to black, light green to greenish gray, white; very fine lower to medium upper, dominantly fine grain; angular to subangular; moderately well sorted; sandstone pieces are fine to medium grain with strong calcareous cement; hard to brittle; weak green to greenish gray hue; other pieces are very fine grain and soft to friable with ashy supporting matrix; light gray to light yellowish gray; non calcareous; trace Tight brownish gray sandstone; soft; fragile; commonly grades to sandy siltstone /silty sandstone; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (8100'- 8220') = medium gray to light grayish brown to medium brown; soft to slightly firm; sticky at times; rounded, irregular shaped cuttings, trace pieces show pdc bit action; silty to clayey to gritty texture; earthy to dull to sparkly luster; slight to moderately soluble; expansive when hydrated; hydrophilic; poor to fair cohesiveness and adhesiveness; non to slightly calcareous; trace dark brown to black micro -thin carbonaceous laminations and inclusions; trace grayish white ashy tuff; fragile to pulverulent; common visible shards; sometimes acts as supporting matrix for loosely supported sands; non calcareous. Sand/ Sandstone/Tuffaceous Sandstone (8180'- 8320') = medium gray with light olive gray hues; individual grains dominantly clear to translucent quartz and volcanic glass, light gray, white, trace black and light to medium green to greenish gray; very fine lower to medium upper, dominantly fine; angular to subangular; moderately well sorted; very loosely consolidated to disaggregated; consolidated pieces are friable and brittle with moderate to strong calcareous cement; abundant Tight gray to grayish white ashy tuff; abundant shards; trace thin coals. • El EPOCH Oa) MARATHON OIL COMPANY KDU 9 Tuffaceous Claystone/Tuffaceous Siltstone (8260'- 8400') = medium gray to light grayish brown to • medium brown; soft to slightly firm; sticky at times; rounded, irregular shaped cuttings; silty to clayey to gritty texture; earthy to dull to sparkly luster; slight to moderately soluble; expansive when hydrated; hydrophilic; poor to fair cohesiveness and adhesiveness; non to slightly calcareous; trace dark brown to black micro -thin carbonaceous laminations and inclusions; trace grayish white ashy tuff; fragile to pulverulent; common visible shards; trace thin coals. Sand / Sandstone/Tuffaceous Sandstone ( 8340'- 8500') = medium gray overall with individual grains dominantly clear to translucent quartz and volcanic glass light to dark gray to black, light green to greenish gray, white; very fine lower to medium upper, dominantly fine grain; angular to subangular; moderate to moderately well sorted; sandstone pieces are fine to medium grain with strong calcareous cement; medium gray; fine to medium grain; hard to brittle; tuffaceous sandstone is fine grain; light gray; soft fragile; non calcareous; scattered light brown to brownish gray silty sandstone /sandy siltstone; firm; friable; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (8440'- 8560') = medium gray to light grayish brown to medium brown; soft to slightly firm; sticky at times; rounded, irregular shaped cuttings; silty to clayey to gritty texture; earthy to dull to sparkly luster; slightly to moderately soluble; expansive when hydrated; hydrophilic; poor to fair cohesiveness and adhesiveness; non to slightly calcareous; trace dark brown to black micro -thin carbonaceous laminations and inclusions; trace grayish white ashy tuff; fragile to pulverulent; non calcareous. Coal /Carbonaceous Shale (8490'- 8610') = dark brown to black; very firm to hard and brittle; occasionally malleable and flexible; blocky to platy; planar fracture dominant; earthy to resinous luster; smooth to gritty texture; trace outgassing bubbles; present as thin beds in dominantly sand and clay formation. Tuffaceous Claystone/Tuffaceous Siltstone (8560'- 8680') = medium gray to grayish brown to medium dark brown; soft to slightly firm; sticky at times; rounded, irregular shaped cuttings; silty to clayey to gritty texture; earthy to dull to sparkly luster; slight to moderately soluble; expansive when hydrated; hydrophilic; poor to fair cohesiveness and adhesiveness; non to slightly calcareous; trace dark brown to black micro -thin carbonaceous laminations and inclusions; trace thin coals /carbonaceous shale; trace light gray light grayish brown siltstone that commonly grades to sandy siltstone /silty sandstone; fragile; non calcareous. Sand/Tuffaceous Sandstone (8680'- 8760')= medium gray with strong yellowish gray secondary hues; dominantly clear to translucent quartz and volcanic glass, with light to medium gray, dark gray to black lithics and minerals and rare to trace pale rose and dusky red grains; very fine lower to scattered coarse upper, dominantly fine grain; angular to subangular; moderately well sorted in fine to medium, poorly sorted in coarse range; dominantly disaggregated with abundant Tight gray to grayish white ashy supporting matrix; soft and fragile; non to slightly calcareous. Tuffaceous Claystone /Carbonaceous Tuffaceous Claystone /Carbonaceous Shale /Coal (8760'- 8800') = complex clay- dominant lithologies; most abundant rocks are very carbonaceous tuffaceous claystones gradational to carbonaceous shale with localized increases of thin coal laminations; brownish gray and pale brown to very dusky brown; slightly firm to slightly brittle; visible abundant micro -thin laminations and bands. Sand /Sandstone/Tuffaceous Sandstone (8800'- 8850') = significantly "cleaner looking" than clay zone above; medium light gray with faint light olive gray and pale yellowish brown secondary hues; fine lower to medium lower; moderately well sorted at fine upper; angular - subangular, increasing rounded grains when tuffaceous; equi - dimensional grains; mixed clay -ash support for both grain and matrix supported, also local grain supported with both soft and crystalline calcareous cementing; note local zone with interbedded sandstone and resinous coal; sublithic arenite to borderline lithic quartz arenite; 10 -15% black to dark gray mafic minerals and lithics; 30-40% colorless, transparent grains. E EPOCH 8 Ira) MARATHON OIL COMPANY KDU 9 Very Carbonaceous Tuffaceous Claystone (8930'- 8955') = complex mix of primary and secondary • colors slightly dominated by pale brown to grayish brown, often has lower lightness values in dusky and dark color variations; range to dusky yellowish brown, brownish gray, grayish brown, and occasionally to very dusky red. Coal (8955'- 8980') = massive; black; brittle to hard; lignite to sub - bituminous; subconchoidal fracture; smooth texture; earthy to resinous luster; visible outgassing bubbles present. Sand/Tuffaceous Sandstone /Conglomeratic Sand (9000'- 9230') = medium to medium light gray with light pinkish gray and greenish gray secondary hues from ash content, individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray to black lithics and light to medium greenish gray; soft; very fine lower to very coarse lower, dominantly fine upper to medium lower; angular to subangular; poorly sorted; dominantly loose grains with soft ashy tuff supporting; pulverulent; moderate to very calcareous; common visible shards; scattered thin coal beds. Coal (9110'- 9210') = black with dark gray and dark brown secondary hues; firm to hard; brittle; planar fracture dominant; blocky to platy; flaky; smooth to slightly gritty texture; earthy to resinous luster; scattered to abundant outgassing bubbles; lignitic to sub - bituminous. Tuffaceous Claystone/Tuffaceous Siltstone (9140'- 9240') = brownish gray with light brownish gray secondary hues; very soft; fragile; irregular shaped cuttings; silty to slightly gritty texture; earthy to sparkly luster; moderately soluble; non to slightly expansive; poor adhesiveness poor to fair cohesiveness; moderate to very calcareous. Sand /Sandstone/Tuffaceous Sandstone /Conglomeratic Sand /Conglomerate (9230'- 9700') = dominant olive gray with many subtle shifts to slightly grayer colors and higher lightness values; occasionally to Tight gray when matrix volume of tuffaceous sandstone increases; often has "dirty oliveish" • salt and pepper appearance; note abundant sandstone from more massive zones that are "clean - looking", grain supported, calcareous - siliceous cemented and display strong contrast of white -green - black (and trace red) grains; fine lower to pebble fragments; moderate to poorly sorted overall, but common very fine to fine moderately well sorted sandstone; dominant group is fine upper to coarse lower; very fine fraction mostly glass shards winnowed from volcanic ash; very evident fining upward; dominantly angular to subangular and discoidal to subdiscoidal, but consistent very minor fraction of subrounded to rounded and subspherical to spherical grains; note abundant equi - dimensional grains that are both angular and rounded; mostly disaggregated overall, but locally very abundant and occasionally dominant consolidated pieces. Sand /Sandstone!Tuffaceous Sandstone /Conglomeratic Sand /Conglomerate (9230'- 9700') = appears to be 4 major sandstone groups with some crossover characteristics: 1): "clean- looking" grain supported sandstone with calcite - silica cementation and usually fair to good visible porosity; 2): tuffaceous sandstone with inter -grain ash that shows minimal reworking and has abundant discernible microshards; 3): very fine to fine silty sandstone, both grain and matrix supported with variegated inter -grain mix of more highly reworked tuffaceous clay -silt, volcanic ash, micro -micas and soft organic material; 4): fine to conglomeratic sandstone, also both grain and matrix supported, with very complex group of inter -grain material that includes clay - silt -ash, both hard and soft calcite and silica cementation, devitrified ash, shards - microshards and devitrified micro - shards, alteration products and replacement mineralization; also note that many sandstones have significant organic- carbonaceous grains - particles and other material when adjacent to coals, and some are carbonaceous sandstones; abundant disaggregated grains have spots of mineral cements or tiny blebs or attached chunks of soft sediments. El I EPOCH 9 M MARATHON OIL COMPANY KDU 9 Sand /Sandstone/Tuffaceous Sandstone /Conglomeratic Sand /Conglomerate (9230'- 9700') = dominantly sublithic arenite but range from lithic quartz arenite in uppermost zones of massive sand sections to marginal compositional graywacke in basal conglomeratic zones; estimate 60 -90% quartz and volcanic glass, trace feldspar, trace -15% various cryptosilica (chalcedony, chert) and undifferentiated silica, 10 -30% lithics and mafic minerals; dominant lithics are dusky gray to black medium -grade meta argillite rock fragments, closely associated, slightly less abundant, medium -grade meta medium gray phyllite rock fragments and light green, grayish green, and variegated green low grade metamorphic greenstone rock fragments; except for augite and biotite, mafic minerals are not readily identifiable but consistently present as translucent to opaque black, brownish black, grayish brown, greenish brown, and dark greenish gray silicates; note pervasive minor black to silvery black opaque metallic minerals that occur as micro - grains associated with the volcanic ash; 65 -75% of the quartz is colorless to very pale gray to very pale brown and translucent, 25 -35% of the quartz and nearly 100% of the volcanic glass is colorless and transparent. Coal (9210'- 9900') = black to brownish black; mostly massive, but also abundant thin stringers; brittle to marginally hard; more often tough than fragile; more irregular and roughly tabular fragments than blockier fragments; dominant irregular thin platy fracture, but higher grade fragments nearly all sub - conchoidal or better; lignite to marginal sub - bituminous; common alternating bands /zones of different coal grades. Tuffaceous Claystone/Tuffaceous Siltstone (9790'- 9850') = brownish gray to light brownish gray; soft to slightly firm; irregular cuttings habit; clayey to silty to ashy to soft matte textures; earthy luster; mostly hydrophilic, expansive and partially soluble; fair adhesiveness and cohesiveness; generally non calcareous; common carbonaceous laminations and particles. • 3.2. SAMPLING PROGRAM AND DISTRIBUTION KDU 9 Set Type and Purpose Interval Frequency Distribution Marathon Oil Company c/o C & M Storage, Inc. Washed and Dried 20' and 10' 3311 S U.S. Highway 77 A 5675' — 9850' Intervals Schulenburg, TX 78956 Attn: Dave Martens (713) 296 3302 BOX INTERVALS: 5680'- 6900', 6900'- 8100', 8100'- 8900', 8900'- 9400', 9400' -9850' TD (5 Boxes Total) O IR EPOCH 10 M MARATHON OIL COMPANY KDU 9 • 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 7/12/2008: Finish rig down operations at KU 12 -17. Prepare for moving all Glacier No.1 components across the Kenai Gas Field from the 41 -18 Pad to the 41 -7 Pad. Set liner and matting boards in place around well head at KDU 9. Begin moving trailer loads of equipment and supplies from KU 12 -17 and unloading at KDU 9. Move off forklifts, man -rider and mule in advance to position all arriving pieces. Move sub -base off KU 12 -17 well head and lower. Move sub -base, pits, pump room, carrier, generator house, boiler house, water tank, parts house, mechanic shop, mud boat, Hanson tank and cuttings tank and smaller rig components to KDU 9 location. Organize, spot, position in place, rough -in connection points, draw together, and plug in all rig components. Rig down, transport, move, organize, spot and set up all camp trailers while rig components are being assembled. Flip carrier ramp. Fold wings down on sub -base and scope up. Level carrier. Install turnbuckles. Prep for and raise derrick. Install guard rails on top of boiler room, generator house, pit room and pump room. Begin pulling wires from generator to pits. Install pop -offs in pits. Run water line to the rig and camp. Fill water tanks. Change out air bags in pump room pallet lift. Replace electrical cord to sub -base lights. Begin spotting components for craning operations. 7/13/2008: Begin crane operations. Pick up and set in place fuel tank, panic line, flowline, derrick house, Poor Boy, stairs from carrier on driller's side, back landings, V -door, wind walls, Gray Iron, dog house, choke house, beaver slide, BOP conex and rig stairs. Set and pin top landing and wind walls. Pull and plug in wires for dog house and choke house. Turn on interior lighting on rig floor. Raise gas buster. Stand mast. Prep and scope up derrick. Secure guide lines. Rig up service lines. Charge all air and water lines around rig. Install new skirt on pallet lift. Heat boiler up. Rig up brake linkage. Rig up, plug in driller's console and PLC, and briefly function check. Rig and install degasser lines and sleeves. Run choke lines. Between the pit and pump rooms, install dresser sleeves for all mix and charge (centrifugal) pumps and pop -off lines that come off the high and low pressure feed lines between pumps #1 and #2. Straighten out • electrical cables originating from the bulkhead on the generator house. Put softener in place. Set catwalk in place and secure. Spot M -I solids van. Spot #3 pump module. Spot parts house and mechanics shop. Load and set trip tank in place. Install pump on outside of trip tank. Prep for rigging up torque tube. Pick up and install T -bar. Lay out, hang and bolt up torque tube. Install cylinder socks on derrick rams. Rig up shock hoses to pumps. Install and adjust turnbuckles. Install choke hose. Fill pits with water and begin mixing spud mud. Receive fuel. Troubleshoot Gaitronics problem at camp. Pick up and rig up Topdrive. Replace compensator cylinder. Install all fluid and electrical lines to #3 mud pump. Change out saver sub on Topdrive to 4 1/2" IF. Check crown- o- matic. Test carrier drive transmission. Repair Epoch RPM sensor line. Secure service loop for lines to Topdrive. Finish mixing spud mud. Rig up all equipment on rig floor. Hang tongs and pipe spinner. Prep rig floor mud manifold. Drop 2" kill line and floor bleeders in place. Set up pipe racks and begin loading with 5" drill pipe. Rig up bails and elevators. Change out elevator inserts to 5 ". Function test and make final adjustments on Topdrive and carrier. Craig Silva arrives at KDU 9 and rigs up EPOCH's external camp workstations, power to Unit 6,. the Rigwatch 8.7 system, the gas system, the unit's computers and equipment and the wireless network to camp, the analog outputs, the Gaitronics communications and the Starband Satellite system. Unit #6 is organized and prepared for the start of logging. Craig Silva calibrates the gas system. Steve Forest arrives on location and initializes the Starband Satellite system. O E EPOCH 11 ( M ) MARATHON OIL COMPANY KDU 9 • 7/14/2008: Test ESDs. Change out alternator on #2 carrier. Change fitting on bridge crane. Pepare to install starter head. Install cellar grating. Cut and dress 20" conductor. Install 20" SLC by 21 1/4" 2M flanged starter head. Test seals to 3000psi for 10 minutes. Weld 2" valve for kill line on 20" conductor. Prep to nipple up diverter. Set 21 1/4" diverter stack in place and nipple up. Install 16" diverter line, knife valve, riser pipe, flowline and hoses to trip tank. Function test BOPs and knife valve. Prime all three mud pumps and checked for leaks. Run and test all mix and charge pumps. Calibrate pit volume sensors. Test all gas alarms. Work on rig floor alarms. Add on joint to diverter and do performance test on all components of diverter system. Install mouse hole. Change out gas detector light bar on rig floor. Finish general rig up operations and perform rig inspection. Hang back red tugger line. Complete rig audit. Pick up off racks, drift, make up and stand back in derrick 54 joints (27 stands) of 5" drill pipe. Pick up, dirft make up and stand back 21 joints of 5" HWDP plus jars (11 stands) in derrick. Pick up and make up first group of directional tools (16" bit, 8" motor, crossover). Run in and tag fill at 29'. Clean out 20" conductor from 29' to 163'. Pull out of hole to crossover. Break and lay down crossover. Pick up, make up and add NM pony flex collar and NM top stabilizer (and crossover again) to directional tools. Run assembly back in with 5" HWDP to 163'. Clean out conductor from 163' to 165'. Drill out of conductor and Spud Well at 23:06 hours on 7/14/2008. Drill from 165' to 201'. 7/15/2008: Drill from 201' to 223'. Circulate bottoms up. Continue to circulate and clean hole. Pull out of hole standing back 5" HWDP from 223' to 46'. Lay down steel crossover. (Bit, steerable motor, NM pony flex collar, NM top stabilizer still in hole). Pick up, make up and run in hole remaining tools of directional bottom hole assembly (MWD, crossover, 3 CSNMDPs, crossover, pin -pin crossover, box -box shock sub, crossover) to 186'. Wash down from 186' and tag bottom at 223' (with no significant fill). Drill (rotating and sliding) from 223' to 1032'. PLC controls becoming very problematic for driller. Cease drilling and circulate on one pump while troubleshooting and correcting PLC problems. Function test PLC controls and resume drilling. Drill (rotating and sliding) from 1032' to 1124'. 7/16/2008: Drill (rotating and sliding) from 1124' to 1685'. Circulate bottoms up. Pump and circulate • around Hi -Vis sweep. Circulate hole clean. Pull out of hole (SLM with no correction) from 1685' to 150' (just inside conductor) on wiper trip. Service blocks and crown. Run back in hole from 150' to 1685' (with no fill). Circulate bottoms up and continue to circulate hole clean. Pull out of hole with 5" drill pipe to 845'. Pull and stand back 5" HWDP and jars. Break and lay down 3 crossovers and shock sub. Pull and stand back first 2 CSNMDPs. Break and lay down remaining directional tools (bottom CSNMDP, crossover, MWD, NM stabilizer, NM pony collar, motor, bit). Inspect all connections while pulling and laying down bottom hole assembly. Note bad threads on bottom CSNMDP, top and bottom of MWD tool and top of string stabilizer. Load off crossovers from floor. Clean rig floor. Lay down bit handling tools. Prepare to run 13 3/8" surface casing. Lay down bit handling tools. Change out from short to long bails. Lay down pipe elevators. Install pick -up line. Move breakout tongs to drillers side and install correct tong head. Install fill -up line. Install casing elevators. • LI EPOCH 12 M MARATHON OIL COMPANY KDU 9 • 7/17/2008: Rig up and test stabbing board. Rig up casing tongs and tall snub post. Remove rotary bushings and rig up casing spider slips. Tie one tugger line back in derrick for pipe pick -up and second tugger line back to hang casing tongs. Rig up Weatherford power tongs. Make up EZ -turn valve onto casing swage for safety valve and function check (and record in IADC). Stage centralizers and lock rings on rig floor. Clean casing threads of each shoe track joint before make up. Hold pre job meeting with Weatherford hands on procedures and safety for running surface casing. Pick up, Bakerlok, make up and run in hole 13 3/8" shoe track (shoe joint, spacer joint, sting -in float collar) and run in hole. Check floats. Continue running in hole with 13 3/8" casing as per Marathon to 1665'. Break circulation. Wash down from 1665' and set shoe at 1675'. (Note slick casing run with no fill on bottom). Circulate hole clean. Rig down and load off all Weatherford casing running equipment. Rig down fill up line. Clear rig floor. Change out bails, elevators, tongs and snubbing post to handle and run 5" drill pipe. Prep pipe spinner. Make up inner string tools (stab -in sub, 5' pup and centralizer) on 5" drill pipe. Rig up false rotary for running 5" drill pipe inside 13 3/8" casing. Run in hole with 5" drill pipe and stab -in sub to top of float collar at 1630'. Rig up cementing line. Tag and sting into float collar and space out. Circulate and condition hole. Record 1 unit of trip gas. Pump 160 bbls of mud to Hanson Tank prior to cementing. Build 40 bbl SAPP spacer. Rig up cementing lines. Hold pre job meeting with BJ cementers on safety and procedures for cement job. Pump 40 bbls of 8.4ppg Mud Clean II (with 1 gallon red dye added) using rig pumps. Switch over to BJ pumping unit. Pump 1.6 bbls of water and pressure test cement lines to 2827psi. Bleed off pressure. Batch cement to 12.0ppg. Pump 184.0 bbls of 12.0ppg cement slurry (416 sacks Type I LW -6 cement and accelerator additives to 102.0 bbls of mix water for 10.328 gal water /sack and yield of 2.483 cu ft per sack). Pump cement slurry and then follow with 2.6 bbls of water and 23.8 bbls of 9.5ppg mud to displace. Check floats. Cement in place. No losses during pumping with good excess cement returns to surface. Note 37 bbls of cement returns pumped into cellar. Cement returns treated with citric acid retarder. Rig down and flush cementing head and lines and continue rigging down BJ. Unsting from float collar. Float holding. Pull one joint to 1598' and rig up to pump ball down pipe. Pump wiper ball down to clear drill pipe of any residual cement. Treat all mud returns for traces of cement product. Dump returns during and after pumping ball. Finish pumping. Rig up false rotary table and pull out of hole from 1598'. Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). Rig down false rotary. Flush, re- flush and drain 20" by 13 3/8" annulus, flowline and mud lines. Pull plate. Clear and clean rig floor and cellar. 7/18/2008: Wait on cement. Prep diverter for nipple down. Pump out and haul off spud mud and begin cleaning pits. Nipple down and remove diverter line and knife valve. Disconnect turnbuckles to stack and secure out of the way. Nipple down and rig down fill -up line, bleeder line, trip tank line, flow line, kill line, 2" valve, actuator and scaffolding. Remove and lay down mousehole. Change out HCR valve on stack. Make rough cut on 13 3/8" casing and lay down section (20.89'). Nipple down bell nipple. Nipple down and move flowline extension aside. Nipple down, set in rack and load off diverter stack. Continue cleaning pits. Begin loading 5" drill pipe for next hole section on pipe racks. Prepare to lift off starter head. Change bails. Secure to bridge crane. Remove starter head. Make cut on 20" conductor and lay down section. Make final dressed cut on 13 3/8" casing and lay down section. Install 13 3/8" slip -lock connection by 13 5/8" 5M flanged multi -bowl wellhead and test to 1500psi for 15 minutes. Finish cleaning pits and begin building 9.2ppg Flo -Pro mud system. Install flowline extension and DSA spacer spool. Install BOP stack. Pick up annular preventer with bridge crane. Pull plug from annular. Put 5' doublegate on rack, spot under annular and nipple up. Rack, stack, bolt up and hammer up mud cross and 5" single gate to the double gate and annular preventer. Install choke hardline and adaptor spool. Install check valve and kill line. Install quick connects on annular. Make up connects to blind rams. Nipple up pitcher nipple and flow line adaptor. Install bleeder lines. Install trip tank hose. Install trip tank valve and actuator. Chain up turnbuckles to stack and level out. Rig up panic line. Prepare to test BOPE. Pull wear ring. Set test plug. Rig up testing equipment. Test all gas alarms. Test all BOPE to 250psi Low / 5000psi High for 10 minutes (annular, upper pipe rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside kill, HCR, manual choke, lower pipe rams, blind rams, CMVs 1 -12). • EPOCH 13 M MARATHON OIL COMPANY KDU 9 7/19/2008: Perform accumulator drawdown test. Rig down testing equipment. Pull test plug. Continue • building Flo -Pro mud system. Check PVT alarms. Test casing to 1500psi for 30 minutes. Set in wear ring. Install elevators. Pick up and prepare pipe handling tools on rig floor. Pick up, drift, make up, run in hole, pull out standing back in the derrick and strap two 24 joint batches and one 30 joint batch (78 joints total) of pre- staged 5" drill pipe off the pipe racks. Align Topdrive rail and and pipe to center of well. Lay down 2 CSNMDPs. Pick up, make up and run in hole new directional assembly (bit, motor, NM stabilizer, pony NMDC, MWD, crossover). Orient MWD tools. Make up and run in hole remaining directional tools (3 NMCSDP flex joints, crossover). Make up crossover to first stand of HWDP from derrick and run in hole with HWDP and jars to 826'. Test MWD pulse signal. Strap, pick up, drift, make up, run in hole 22 more joints (11 stands) of pre- staged and prepped 5" drill pipe off the pipe racks to 1521'. Install corrosion ring in next stand of 5" drill pipe to be added to string. Wash down with pipe out of derrick from 1521' and tag float collar at 1629'. Drill out float equipment, remaining shoe tract (cement, shoe at 1675', rathole to 1685') and 20' of new hole from 1685' to 1705'. Circulate bottoms up. Displace spud mud by pumping 25 bbl water spacer, 43 bbl Hi -Vis sweep and 230 bbls of new 8.9ppg Flo -Pro mud. Cease pumping. Perform Formation Integrity Test to 13.0ppg EMW. Pump up compensator for Topdrive. Drill ahead. Build mud volume in 50 bbl batches while drilling. Drill (rotating and sliding) from 1705' to 1981'. 7/20/2008: Drill (rotating and siding) from 1981' to 3532'. Circulate bottoms up. Circulate hole clean prior to wiper trip. 7/21/2008: Finish circulating hole clean at 3532'. Check for flow. Pull out of hole (30 stands) from 3532' to 1640'. Service rig (topdrive, block and crown, carrier). Note 2 bbls static mud losses while servicing rig. Run back in hole from 1640' to tight spot at 3498'. Wash down from 3498' to bottom at 3532'. Pump around 30 bbl Hi -Vis sweep. Record 5 units of wiper gas. Observe significant increase in cuttings over shakers as sweep comes around. Drill (rotating and sliding) from 3532' to 4481'. Circulate bottoms up and continue to circulate hole clean for wiper trip. Spot 50 bbl LCM pill on bottom before tripping. 7/22/2008: Pull of hole (15 stands) from 44 1' 3532' on wiper trip. Run back in hole from 3532' to I 4110 u out o o e( s a s) 8 to 35 p p 4418'. Note rate of static mud loss at 1 bph during wiper trip. Wash from 4418' to bottom at 4481' (with no fill). Record 13 units of wiper gas. Drill from 4481' to 5675'. Circulate bottoms up and continue to circulate hole clean. Monitor well. Estimate rate of static mud loss at 2 bph prior to wiper trip. Pull out of hole (35 stands) from 5675' to 3465' on wiper trip. Work through tight zones on way out at 5335', 5048', 4956', 4864'. Kelly up and ream through sticky zone at 4956'. Run back in hole from 3465' to 3781' on way to bottom. EPOCH 14 " MARATHON OIL COMPANY KDU 9 7/23/2008: Continue running back in hole from 3781' and tag minor ledge at 5124'. Fill pipe and then • ream, briefly backream, and clean from 5124' to 5238'. Continue running in hole from 5238' and tag minor ledge at 5648'. Kelly up. Break circulation. Ream through ledge and wash down from 5648' to 5661'. Shut pumps off. Continue running in and take slight increase in weight at 5670'. Estimate 5' of fill. Wash last 5' to bottom at 5675'. Circulate bottoms up. Record 87 units of wiper gas. Pump around 30 bbl Hi -Vis sweep. Circulate hole clean. Spot 50 bbl LCM pill on bottom. Pull out of hole (SLM with no correction) with 5" drill pipe from 5675' to top of bottom hole assembly at 826'. Pull and stand back 21 joints 5" HWDP plus crossover and jars (11 stands) to 165'. Break, lay down and load off directional tools (crossover, 3 NMCSDP flex joints, crossover, MWD, NM pony collar, NM stabilizer, bit). Clear and clean rig floor. Rig down, lay down and organize handling tools. Clean rig floor and cellar. Pull wear bushing. Hold pre -job meeting on changing rams. Close blind rams. Change out upper 2 7/8" by 5 1/2" variable pipe rams to 9 5/8" casing rams. Run test plug. Pick up, make up and install test joint. Rig up test equipment. Test casing rams to 250psi Low / 2500psi High for 5 minutes. Rig down test equipment. Pull test plug. Prep to make gauge run with 9 5/8" casing hanger. 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. Remove elevators and short bails. Install Lafleur fill -up tool. Install long bails and pick -up sling -line. Install casing elevators. Move torque tube back in derrick for clearance. Rig up and function stabbing board. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. 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 intermediate casing string. Inspect rig -up. Pick up shoe joint to start run -in and immediately note incorrect size of stabbing guide in elevators. Wait on Weatherford while 9 5/8" stabbing guides are transported to the rig. Prep and change out correctly sized stabbing guide in elevators. 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, spacer joint, float collar) and run in hole to 85'. Circulate • casing volume through shoe track and check float equipment. 7/24/2008: 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 85' to 1635' (inside shoe). Break circulation and fill pipe. Continue running 9 5/8" casing in hole from 1635' to 3637'. Break circulation and circulate bottoms up. Record 4 units maximum gas. Spot 50 bbl LCM pill in casing. Continue to run in with 9 5/8" casing from 3637' to 5620'. Position fill -up tool so joint can be circulated down. Open and remove spider slips. Break circulation and wash down from 5620' to landing depth of 5667.70'. Record 9 units maximum gas while washing down. Land hanger on load shoulder in multi -bowl wellhead. Drain stack and verify landing. Make up cementing head with top and bottom plugs pre - installed. Continue to circulate and condition mud prior to cement job. BJ begins batching up 10.5ppg cement while the rig is conditioning the mud. Hold pre job meeting with BJ and all hands on procedures and safety for cement job. Finish circulating with rig pumps. Blow air through cement valves and lines to clear. Switch to BJ pumping unit. Pump 3 bbls of water and pressure test lines to 3611 psi. Bleed off and open up bottom valve. Drop first (bottom) plug. Mix and pump 29.0 bbls of 10.0ppg SealBond spacer (using 27.70 bbls of mix water and adding 290 lbs of Ultra Seal Plus LCM material before pumping), and follow with 208.0 bbls of pre -mixed 10.5ppg cement slurry (346 sacks of Class G cement plus accelerator chemicals mixed with 102.52 bbls water to batch -up at 12.445 gal /sk and yield of 3.375 cu- ft/sk). Spin out pin. Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 2.0 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 428.88 bbls (9102 strokes) of mud (and 430.88 bbls total displacement). Bump plug at close to calculated strokes with 625psi over - pressure (and 1215psi total pressure). Bleed off. Check floats. Cement in place. Begin 24 hour wait on cement. (Note cementing lines flushed with 3.0 bbls of water by BJ after last plug kick out). 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. Make up 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and test pack -off to 5000psi for 10 minutes. Remove sling line. Rig down, lay down and load off the casing spider slips, casing elevators, long bails and Lafleur fill -up tool. Rig up short bails and drill pipe • elevators. Move tong hanging sheave and hang rig tongs. Offload remaining Weatherford equipment. E EPOCH 15 (itOk—) MARATHON OIL COMPANY KDU 9 7/25/2008: Continue waiting on cement. Rig up to handle drill pipe. Finish resetting and realigning torque • tube, rigging up Topdrive rail and installing bails and elevators. Change out upper 9 5/8" casing rams to 2 3/8" X 5 1/2" variable pipe rams. Clean rig floor. Run in test plug. Could not set test plug. Pull plug out of hole and discover both seals are damaged. Replace seals. Run in and set repaired test plug. Rig up testing equipment. Test annular preventer to 250psi Low /2500psi High for 5 minutes. Test all remaining BOPE to 250psi Low /5000psi High for 5 minutes (upper pipe rams, check valve, dart valve, upper Topdrive IBOP, CMVs 1- 10- 11 -12, floor valve, lower Topdrive IBOP, outside kill valve, CMVs 6 -8 -9, inside kill valve, CMVs 2 -5 -7, HCR, manual choke CMVs 3 -4, blind rams). Perform accumulator drawdown test. Note that major repairs to the cotta box commenced after the third BOP test. Rig down testing equipment. Pull test plug. Install wear bushing. Continue cotta box repairs, and perform various rig service and maintenance during repairs. Check oil levels and service lube Topdrive. Repair hose to rotary table lock. Repair rubbers under the beds of #2 shaker. Test 9 5/8" casing to 2500psi for 30 minutes after waiting on cement for 24 hours. Do a sling inventory. Inspect ladders. Inspect mud pumps. Continue cotta box repairs. 7/26/2008: Continue cotta box repairs. Replace shifting fork and seals on the carrier #2 side. Finish working on cotta box. Test play and synchronization of drives. Troubleshoot and make adjustments to right angle drive. Prepare rig floor for picking up directional bottom hole assembly. Prepare drill pipe on the pipe rack. Pick up, make up and run in hole directional assembly (8 1/2" bit, mudmotor, NM string stabilizer, short NMDC, MWD, NM crossover , 2 NMCSDPs, steel crossover, 21 joints 5" HWDP plus jars) to 791'. Surface test MWD tool. Pick up off pipe rack, drift, make up and run in 108 joints of 5" drill pipe to 4200'. Continue running in hole with 20 stands of 5" drill pipe from derrick to 5465'. Break circulation. Wash down from 5465' and tag float collar at 5580'. Drill out float collar and remaining shoe tract (cement, shoe at 5667', and rathole) to bottom at 5675'. Drill 20' of new hole to 5695'. Circulate bottoms up. Rig up and perform Formation Integrity Test to 14.2 EMW (9.9ppg, 5354'TVD, 1200psi). Dump 200 bbls of old Flo -Pro mud to Hanson Tank. Drill (rotating) from 5695' to 6298'. • 7/27/2008: Drill from 6298' to 6849'. Circulate bottoms up and continue to circulate hole clean. Pull out of hole from 6849' to 5652' on wiper trip to shoe. (Hole sticky pulling out, requiring brief backreaming in 16 places). Service rig and Topdrive. Troubleshoot Epoch's RPM sensor on Topdrive. Run back in hole (with no problems) from 5652' to 6785'. Wash down from 6785' to bottom at 6849' with no fill. Start pumping around 30 bbl sweep. Record 65 units of wiper gas. Begin weighting up from 9.8ppg to 10.2ppg. Drill from 6849' to 7665'. 7/28/2008: Drill from 7665' to 7924'. Circulate bottoms up and continue to circulate hole clean. Check for flow. Pump dry job. Pull out of hole from 7924' to 6662' on wiper trip to shoe. Hole very sticky pulling out, requiring working and backreaming in 31 spots. Note near continuous backream from 6959' to 6800'. Run back in hole (slick with no problems) from 6662' to 7861'. Wash down from 7861' to bottom at 7924' with no fill. Start pumping around 30 bbl sweep. Record 1585 units of wiper gas. Begin weighting up from 10.5ppg to 11.5ppg. Drill from 7924' to 8800'. Circulate bottoms up for first stratigraphic assessment by Marathon geologist. Continue circulating while waiting for evaluation. Drill from 8800' to 8850'. Begin circulating bottoms up for second stratigraphic assessment by geologist. • HI EPOCH 16 M MARATHON OIL COMPANY KDU 9 7/29/2008: Finish circulating bottoms up at 8850' for second stratigraphic assessment by Marathon • geologist. Pull out of hole from 8850' to 7857' on wiper trip. (Only 2 very minor sticky spots on way out). Run back in hole from 7857' to 8807'. Wash down from 8807' to 8850' with no fill. Drill from 8850' to 8870'. Circulate out high gas at 8870'. Record 2064 units of wiper gas. Begin weighting up from 11.5ppg to 12.0ppg. Circulate gas down to 30 units and resume drilling. Drill from 8870' to 8900'. Circulate bottoms up for third stratigraphic assessment by geologist. Finish weighting up to 12.0ppg. Drill from 8900' to 8925'. Circulate bottoms up for fourth stratigraphic assessment by geologist. Drill from 8925' to 8945'. Circulate bottoms up for fifth stratigraphic assessment by geologist. Drill from 8945' to 8955'. Circulate bottoms up for sixth stratigraphic assessment by geologist. Continue circulating (another 2.8 bottoms up) while determination on whether to drill additional footage is made. (Decision reached to wiper trip, pull out of hole and run a gamma log on wireline for confirmation). Pull out of hole from 8955' to 5560' on wiper trip. Pull slick nearly all the way from 8955' to 7978' (with only minor sticky spots at 8590' and 8331'). Hole becomes very tight at 7978'. Run stand back in to 8019' and begin significant backreaming, reaming, washing and working pipe to 7070'. Record maximum 62 units of gas while working pipe. (Work through 32 tight zones totaling estimated 380' of tight or "sticky" hole). Pull out of hole from 7070' to 5685' (just outside of 9 5/8" shoe at 5668'). Circulate 1.5 bottoms up. Pull up into casing to 5560'. Service rig and Topdrive. Grease crown. Start running back in hole from 5560' (to 5685'). 7/30/2008: Continue running back in hole from 5685' to 8902'. Wash down from 8902', start taking marginal amount of weight at 8933', and ream rest of the way down to 8955' (with no fill). Circulate bottoms up. Record 358 units of wiper gas. Continue to circulate, clean and condition hole while building mud weight up from 12.1 ppg to 12.2ppg. Record last gas at 5 units before pump shut down. Check for flow. Prep to pull 5" drill pipe out of hole (SLM). Pull out of hole from 8955' to 8933' and lay down single. Pull out of hole from 8933' to 8618'. Pump dry job. Pull out of hole from 8618' to 6473'. Drop drift. Continue pulling out of hole from 6473' to 791'. Pull and stand back 21 joints 5" HWDP plus crossover and jars (11stands) to 132'. Stand back directional tools (steel crossover, 2 NMCSDP flex joints, NM crossover, MWD, NM pony collar, NM stabilizer, bit). Grade bit. Clear and clean rig floor. Rig up Expro • Wireline Service equipment and hold brief pre -job meeting on wireline operations. Run in hole with gamma correlation log. Tag bottom and pull out of hole to shoe logging up with GR tool. Review depth integrity of logging run and decide to do a second confirmation pass. Pull out of hole with GR tool. Remove centralizer springs. Run back in hole with gamma tool. Adjust downward correlation point at 9 5/8" casing shoe depth of 5667'. Run in hole with GR tool and tag bottom at 8948' (logger's depth). Pick up and land on bottom 3 times to insure no ledges or fill. Log up with gamma tool from 8948' to 5502'. Pull rest of the way out of hole with wireline gamma tool assembly.. Lay down logging tools. Rig down Expro Wireline Service equipment. Wait on log evaluation by Marathon geologist. (Go ahead given to run 7" liner at current depth). Pull wear bushing. Change out pipe rams to 7 ". Rig up test equipment. 411 HI EPOCH 17 M MARATHON OIL COMPANY KDU 9 7/31/2008: Test 7" rams to 250psi Lo / 2500psi Hi for 10 minutes. Set wear bushing. Pick up, make up • and lay down cementing head. Rig up cementing line and circulating swage. Move breakout tongs to driller's side and install correct tong head. Remove elevators and short bails. Install long bails and pick -up sling -line. Install casing elevators. Adjust torque tube. Rig up and function stabbing board. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. 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 second (blue) tugger line back for hanging casing tongs. Hold pre -job meeting on procedures and safety for running 7" casing. Inspect rig -up. Run in hole with 7" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Install stop collars and centralizers as directed. Pick up and make up shoe track (shoe joint, 2 spacer joints, float collar) and run in hole to 169'. Circulate casing volume through shoe track and check float equipment. Continue running 7" casing in hole. Attach centralizers as per tally and fill every joint on way in. Run casing from 163' to 460'. Work on tong dies. Change out tongs. Continue running casing from 163' to 3444'. Rig down stabbing board. Load off centralizers and lock rings. Remove casing tongs. Re -rig tugger lines for picking up drill pipe. Remove EZ -turn valve. Rig down casing spider slips. Rig down Weatherford casing tongs. Remove tall snub post. Replace rotary bushings. Move breakout tongs to driller's off -side and install correct tong head. Remove pick -up sling line. Replace long bails with short bails. Remove casing elevators and install drill pipe elevators. Adjust torque tube. Pick up and make up liner hanger assembly (7" flexlock hanger liner, RS PO nipple, ZXP liner top packer, 5" drill pipe lift nipple) Install circulating swage. Break circulation, fill pipe and circulate bottoms up. Record 7 units maximum gas. Continue running 7" liner in hole with 2ljoints 5" HWDP to 4113', laying down jars on way in, and 5" drill pipe to 5630' (near shoe). Install circulating swage. Fill pipe. Continue running 7" liner in hole with 5" drill pipe to 8928'. Rig up cementing head with plug pre - installed. Break circulation and wash down from 8928' to bottom at 8955'. Circulate bottoms up. Record 185 units of trip gas. 8/01/2008: Continue circulating and conditioning prior to cementing 7" liner. Shut down pumps. Rig up • cementing lines. Circulate and condition mud (1 full casing volume). Hold pre -job meeting with BJ on procedures and safety for cement job. Transfer 120 bbls mud from pits to Hanson Tank. Switch to BJ pumping unit. Pump 2.0 bbls of water ahead to fill cementing lines and test to 4490psi. Bleed off and open safety valve. Mix and pump 28.0 bbls of 12.5ppg MCS -4D spacer. Have trouble with water line. Reprime water line. Batch up and pump 82.00 bbls of 12.5ppg cement lead slurry (with 184 sacks of Class G cement to 61.22 bbls mix water plus chemical additives for 2.417 cu ft/sack yield) and then 38.00 bbls of 15.8ppg cement tail slurry (with 165 sacks Class G cement to 19.60 bbls mix water plus chemical additives for 1.117 cu ft/sack yield). Finish pumping cement. Drop plug. Pump 4.80 bbls water to kick out the plug. Displace cement with 220.0 bbls of mud. Total displacement is 224.1 bbls. Pump at slower rate after 205 bbls away. Bump plug with 525psi over (and 1492psi total) displacement pressure. Bleed off. Check floats. Cement in place. Swap lines back to rig to reverse out. BJ starts equipment wash down. Pressure drill pipe to 3200psi and set liner hanger. Work pipe to release hanger, but hanger fails to release. Mechanically release hanger after % wrap of left hand turn. Pick up on string 5' to expose dog sub in hanger - packer combo assembly, slack off 75K to shear and set liner packer. Top of packer at 5479'. Very slowly break circulation. Pick up 30' while slowly circulating (at 2 bpm) until running tool (lift nipple) is completely free, and then increase circulation rate (to 10 bpm). Circulate out and observe 25 bbls of cement returns and surface. Record 29 units maximum gas as returns reach surface. Circulate until returns are clean. Stop circulating and then flush down and blow down cementing head and lines back to pits. Lay down cementing head and secure out of the way. Pull out of hole with 5" drill pipe from 5479' to 3469'. Hold pre -job meeting on safety and procedures for pulling and laying down drill pipe from the mouse hole. Prep and set up rig floor for laying down drill pipe. Pull out of hole from 3469' laying down 5" drill pipe. Begin offloading 280 bbls of 12.3 mud in pits. Break and lay down running tool. Break, rig down and load off cementing head. Break, lay down and load off directional tools (steel crossover, 2 NMCSDP flex joints, NM crossover, MWD, NM pony collar, NM stabilizer, bit). Secure handling tools. Begin building new 9.0ppg Flo -Pro mud. Change out 7" casing rams to stacked 5" and 4" rams. Pick 5" and 4" test joints in succession and test both size rams to 250psi Lo / 5000psi Hi for 5 minutes. Install wear bushing. Pick up, make up and run in hole 6 1/8" bit, bit sub and crossover. Pick up, make up, drift • and run in hole 4" HWDP to 673' and 4" drill pipe to 4515'. Fill pipe. Rig up and test casing to 3000psi for 30 minutes. EPOCH 18 M MARATHON OIL COMPANY KDU 9 8/02/2008: Finish testing casing to 3000psi for 30 minutes. Run in hole from 4515' and tag float collar at • 8826'. Change out shaker screens. Circulate and condition well. Begin displacing mud in hole. Build and begin pumping around sweep. Begin building mud volume of 9.2ppg mud. Drill out landing collar from 8826' to 8828'. Record 406 units of gas inside casing while drilling out float. Shut in well. Monitor well. Circulate through choke (60spm, 118gpm, 350 back pressure). Test casing to 3000psi for 15 minutes. Circulate bottoms up. Record 98 units of gas. Drill out remaining shoe tract (float equipment, cement, shoe) from 8828' to 8955'. Drill 20' of new hole from 8955' to 8975'. Circulate bottoms up. Record 198 units maximum of formation gas. (Coal is the very dominant lithology). Circulate and condition well down to 70 units. Condition circulating while Epoch performs gas equipment calibration. 8/03/2008: Shut down pumps. Pull up to 8930' and monitor well for 30 minutes while Epoch completes gas equipment calibration. Break circulation. Circulate bottoms up while working pipe. Record maximum 775 units of shut down gas. Continue circulating and build mud weight up from 9.2ppg to 9.4ppg. Shut down pumps and monitor well for 28 minutes. Break circulation. Circulate bottoms up while working pipe. Record maximum 743 units of shut down gas. Continue circulating and build mud weight up from 9.4ppg to 9.8ppg. Shut down pumps and monitor well for 36 minutes. Break circulation. Circulate bottoms up while working pipe. Record maximum 898 units of shut down gas. Continue circulating and build mud weight up from 9.8ppg to 10.2ppg. Shut down pumps and monitor well for 42 minutes. Break circulation. Circulate bottoms up while working pipe. Record maximum 626 units of shut down gas. Circulate gas down to 5 units. Shut in well and perform BOP drill. Monitor well with pumps off for 60 minutes. Break circulation. Circulate bottoms up while working pipe. Record maximum 865 units of shut down gas. Continue circulating and build mud weight up from 10.2ppg to 11.0ppg. Shut down pumps and monitor well for 38 minutes. Break circulation. Circulate bottoms up while working pipe. Record maximum 3 units of shut down gas. (Well apparently killed at 11.0ppg). Check for flow. Pull out of hole 5 stands of 5" drill pipe to 8617' (while mixing dry job). Pump dry job. Pull out of hole with 5" drill pipe from 8617' to 5397'. Check for flow. Observe apparent 4 bbl shortage on volume replacement. Beginning running back in hole as a precaution while replacement volumes are more closely evaluated. Run back in hole 3 stands to 5584' before volume difference is accounted for by volume surge while dry job is falling down. Static monitoring for 16 minutes indicates that well is stable and not "creeping in ". Pull out of hole with 5" drill pipe from 5584' to 4515'. Change out pipe handling tools from 5" to 4 ". Continue pulling out of hole with 4" drill pipe from 4515' to 4389'. 8/04/2008: Continue pulling out of hole with 4" drill pipe from 4389' to 673'. Pull and stand back 4" HWDP. Break and lay down bit and bit sub. Grade bit. Pick up, make up and run in hole bottom hole assembly (6 1/8" bit, motor, NM pony collar, NM string stabilizer, MWD, 2 NM flex collars, crossover sub, 4 HWDP, jars, 17 HWDP, 61 stands 4" drill pipe, crossover) to 4636'. Surface test MWD tool at 793' on way in. Continue running in hole with 5" drill pipe from 4636' to 8975'. Pick up and circulate bottoms up after tagging bottom. Record 37 units of trip gas. Rig up and perform Formation Integrity Test to 13.0 EMW. Drill from 8975' to 9239'. Circulate bottoms up. Check for flow. Pull out of hole on wiper trip to 8920' (inside shoe). Check for flow. Cut and slip 246' of drilling line. Set crown -o- matic. Service rig and Topdrive. Adjust brakes. Run back in hole from 8920' to 9176'. Break circulation. Wash down from 9176' to 9239'. Circulate bottoms up and record 16 units of wiper gas. Drill from 9239' to 9428'. 8/05/2008: Drill from 9428' to 9790'. Circulate bottoms up for initial stratigraphic assessment by geologist. Drill from 9790' to 9820'. Circulate bottoms up for further stratigraphic assessment by geologist. Drill from 9820' to 9850'. Circulate bottoms up. Circulate hole clean. Check for flow. Pull out of hole from 9850' to 8920' (inside 7" shoe). Service rig and Topdrive. Run back in hole from 8920' to 9806'. Wash down from 9806' to 9850'. Circulate bottoms up. Pump around 50 bbl Hi -Vis sweep. Circulate hole clean. Check for flow. Pump dry job. Drop drift. Pull out of hole with 5" drill pipe and 4" drill pipe from 9850' to 2680'. 8/06/2008: Pull out of hole from 2680' (SLM) to 793' (with no corrections). Pull out of hole and lay down bottom hole assembly. Clean and clear rig floor. Run wireline quad combo and log downhole. Pull wireline out of hole. Pick up bit and bit sub. Run in hole with 4" HWDP, jars, and 5" drill pipe to bottom at 9850'. Circuate for 15 minutes. Pull out of hole to shoe at 9790'. Circulate hole clean. Record 1300 units of trip • gas. Pull out of hole. EPOCH 19 M MARATHON OIL COMPANY KDU 9 8/07/2008: Pull out of hole with clean out assembly from 5969'. Lay down clean out tools. Clear and clean 41 rig floor. Lay down handling tools. Hold pre job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up, make up and run in hole with MFT logging assembly. Log up from 9657' to 9465'. Pull out of hole with logging assembly and clean logging tools. Install safety valve. Run in hole with MFT logging assembly and log up from 9508' to 9195'. Pull out of hole and clean logging tools. Run in hole with MFT logging assembly and log up from 9195' to 9138'. Pull out of hole and clean logging tools. Run in hole with MFT logging assembly and log up from 9642' (to 9146'). 8/08/2008: Log up with MFT assembly, taking pressure points from 9146' to 8997'. Change oil in generator #1 while logging. Run back down with MFT assembly and re- attempt pressure points from 9195' to 9150'. Testing tool plugged off. Pull out of hole with MFT assembly. Break down and lay down logging tools. Rig down Weatherford Wireline Services sheaves, safety valve, and surface running equipment. Clear and clean rig floor. Service rig. Pick up and make up bit, bit sub, and crossover to first stand of 4" HWDP. Run in hole with 4" HWDP, jars, 4" drill pipe and 5" drill pipe to 8934' (just inside shoe). Break circulation. Circulate 1665 strokes (to push migrating gas away from shoe). Run in hole from 8934' to bottom at 9850'. Circulate 2441 strokes to move gas and cuttings returns uphole. Pull out of hole from 9850' to 8934'. Continue circulating out. Record 1395 units of trip gas. Continue to circulate, clean and condition hole (for 18525 total strokes). Circulate gas down to 15 units. Check for flow. Pump dry job. Pull 5" drill pipe and 4" drill pipe out of hole from 8934' to top of 4" HWDP at 676'. Pull and stand back HWDP and jars. Lay down crossover, bit sub and bit. Pull wear ring. Prepare to test BOPE. Set test plug. Rig up testing equipment. 8/09/2008: Test all gas alarms and PVT alarms. Test annular preventer to 250psi Low / 2500psi High for 10 minutes. Test BOPE to 250psi Low / 5000psi High for 10 minutes (upper pipe rams, check valve, 5" dart valve, upper (topdrive) kelly cock, CMVs 1- 10- 11 -12; 5" floor valve, lower (topdrive) kelly cock, outside kill valve, CMVs 6 -8 -9; inside kill valve, CMVs 2 -5 -7; HCR, manual choke, lower pipe rams). • Function accumulator and perform drawdown test. Continue testing BOPE to 250psi Low / 5000psi High for 10 minutes (blind rams, CMVs 3-4; 4" floor valve, 4 "dart valve). Rig down testing equipment. Pull test Set wear bushing. and rig up to run 4 1/2 liner. Remove elevators. Change plug. 9 Prep 9 p a out from short 9 bails to long bails. Install casing elevators. Rig up sling line. Rig up cementing line and circulating swage. Move breakout tongs to driller's side and install correct tong head. Rig up Weatherford casing tongs and tall snub post. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Wait for correct bow spring centralizers to arrive on location. Pick up centralizers and lock rings and stage on rig floor after arrival on location. Tie one tugger line back in derrick for picking up pipe, and the second tugger line back for hanging casing tongs. Inspect rig -up. Hold pre job meeting with Weatherford on procedures and safety for running production liner. Run in hole with 4 1/2" liner as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Install stop collars and centralizers as directed. Pick up, make up and run in shoe track (float shoe, liner joint, float collar, liner joint, landing collar, liner joint) to 128'. Circulate casing volume through shoe track and check float equipment. Continue running 4 1/2" liner in hole. Attach centralizers as per tally and fill on way in. Run casing from 128' to 1154'. Load off unused centralizers and lock rings off rig floor. Remove casing tongs. Re -rig tugger lines for picking up drill pipe. Remove EZ -turn valve. Rig down Weatherford casing tongs and remove tall snub post. Move breakout tongs to driller's off -side and install correct tong head. Remove pick -up sling line. Replace long bails with short bails. Remove casing elevators and install drill pipe elevators. Pick up and make up liner hanger assembly (crossover, liner hanger, ZXP liner top packer, polished seal bore). Install circulating swage. Break circulation, fill pipe and circulate out liner volume (at 105spm, 130psi, 200gpm). Record 6 units maximum gas. Continue running 4 1/2" liner in hole with 20joints of 4" HWDP to 1772' (keeping out 1 HWDP joint and jars on way in). Continue running 4 1/2" liner in hole with 4" drill pipe to 5613'. Make up crossover. Continue running 4 1/2" liner in hole with 5" drill pipe from 5614' to 7257'. • HI EPOCH 20 M MARATHON OIL COMPANY KDU 9 8/10/2008: Continue running 4 1/2" liner in hole with 5" drill pipe from 7257' to 8957' (just outside 7" 4111 shoe). Circulate 800 strokes (at 71spm, 550psi, 140gpm). Continue running in hole from 8957' to 9780'. Wash down from 9780' to 9843'. Make up cementing head and 2" line. Circulate and reciprocate pipe. Circulate bottoms up and record 685 units of trip gas. Continue to circulate and condition hole. Stop circulating and rig up BJ wash down line to cementing head. Continue circulating. Hold pre job meeting with BJ and all hands on procedures and safety for cementing 4 1/2" liner. Stop circulating. Gas down to 12 units. Switch from rig pumps to BJ pumping unit. Pump 2 bbls of water into cementing lines and pressure test to 4000psi. Batch mix and pump 40 bbls of Sealbond sweep at 11.0ppg (using 35.4 of mix water) and follow with 28.92 bbls of 13.5ppg cement slurry. (Batched from formula blend of 89 sacks Class G cement, accelerator chemicals and 19.53 bbls of mix water (9.221 gal /sack) to yield 1.825 cuft/sack). Close cementing head after slurry is pumped, open wash up tee to slop tank and pump 5 bbls of water to wash lines and pump. Open head back up. Drop plug and displace with 20 bbls of brine followed by 116 bbls of mud. Slow down pump rate at 117 bbls of displacement to observe liner plug pickup at 119 bbls. Slow pump rate down again at 134 bbls and bump plug at 500psi over displacement pressure at predicted strokes. Bleed off and check floats. Floats holding. Cement in place. Communicate with Baker and pressure up on drill pipe to 2400psi and set liner hanger with 40K down. Increase pressure to near 4000psi to release from liner. Bleed to 0 pressure and set ZXP packer. Turn over to rig. Pressure to 500psi on drill pipe and pull drill pipe from hanger. Circulate out excess cement (at 180spm, 1225psi). Rig down cementing head and hoses. Make up to Topdrive. Circulate hole clean. Check for flow. Pump dry job. Pull out of hole with 5" drill pipe and 4" drill pipe. Pull out of hole laying down 4" HWDP. Break and lay down setting tool. Begin cleaning pits and racking and prepping 4 1/2" tubing. Begin mixing brine after pits are clean. Stage bottom hole assembly for polish mill run. Pick up, make up and run in hole lower polish mill assembly (mill, 2 crossovers, 7" scraper, bit sub). Continue running in hole with 4" drill pipe. 8/11/2008: Continue running 4" drill pipe in hole to 3867'. Pick up and make up upper scraper assembly (crossover, crossover DP, 9 5/8" scraper bit sub). Change to 5" inserts. Continue running in hole with 5" al drill pipe from 3877' to 8546'. Circulate at 8546' (at 80spm, 650psi, 158 gpm). Record maximum 9 units of gas (inside casing). Slip 33' of drill line. Inspect line. Reset and check crown -o- matic. Service rig. Grease crown, blocks, Topdrive and carrier. Continue to run in hole from 8546' to top of liner at 8691'. Polish liner bore (15.48' in to stop lock) as per Baker toolhand. (Polish at 30rpm, 11K torque, 31spm, 61gpm, 400psi). Circulate out residual soft unset cement (from top of liner bore). Record maximum 21 units of gas (inside casing). Displace well with 6% KCL (at 170spm, 1500psi, 336gpm). Test liner to 4000psi for 30 minutes. Pull out of hole laying down 5" drill pipe in string. Run back in hole with 9 more stands of 5" drill pipe remaining in derrick. Pull out of hole laying down last 18 joints of 5" drill pipe. Pull, break and lay down upper scraper assembly. Change to 4" inserts. Pull out of hole laying down 4" drill pipe. Pull, break and lay down lower scraper assembly with polish mill. 8/12/2008: Pull and lay down wear bushing. Lay down bushing puller and test plug. Clear rig floor of all handling tools. Clean floor. Rig up Weatherford to run 4 1 /2" tubing. Hold pre job meeting on procedures and safety for running tubing. Pick up and make up seal assembly to 4 1 /2" tubing. Run 4 1 /2" tubing in hole to 8681'. Break circulation. Run in and tag top of packer at 8691' then pull up to 8687'. Reverse around inhibited brine (mixed with Conqor 303A). Stop circulating and sting into seal bore. Push to 8705'. Land out and set hanger. Test hanger body seals to 4000psi for 10 minutes. Test contact seal of 7" casing by 4'/2 " tubing to 1000psi for 10 minutes. Flush all surface equipment (mud pumps 1 -2 -3, choke manifold, stack, choke and kill lines, cementing lines, Topdrive, poorboy, stand pipe manifold and all lines to pits). Rig down, lay down and load off Weatherford hydraulic tongs, power slips and other tubing - casing handling equipment. Load off and clear rig floor of all remaining tools. Set Blowout Prevention Valve. Begin cleaning pits. Rig down drip pan, turnbuckles, fill -up line, trip tank line, flowline, and choke and kill lines. Nipple down check and kill valves. Begin nippling down BOP stack. • EPOCH 21 ( M) MARATHON OIL COMPANY KDU 9 • 8/13/2008: Finish nippling down BOP stack, DSA and spacer spool. Load off BOP stack. Finish cleaning pits and clean sump. Clean and inspect gas buster. Prepare and install the tree. Remove BPV. Install 2- way check valve. Test void to 5000psi for 10 minutes. Test tree to 5000psi for 10 minutes. Pull 2 -way check valve and reinstall BPV. Begin general rig down of most Glacier No.1 rig components for its move across the pad to KBU 42 -7RD. Craig Silva rigs down EPOCH's Rigwatch 8.7 system, the gas system, the Unit 6 computers and equipment, an external camp workstation, the wireless network to camp, the Starband Satellite system, the Gaitronics communications and unit power. Unit #6 is organized, secured and put on holding, while Glacier No.1 attemps to unfree the stuck Excape completion on KBU 42 -7RD and restore it to normal production. • • HI EPOCH 22 • • • M MARATHON OIL COMPANY KDU 9 4.2. SURVEY RECORD 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) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 184 0.44 325.46 184.00 -0.36 0.58 -0.40 0.71 0.24 244 0.73 315.86 244.00 0.15 1.05 -0.80 1.32 322.68 0.51 304 0.70 314.81 303.99 0.32 1.58 -1.32 2.06 320.02 0.05 364 0.97 281.40 363.98 0.79 1.94 -2.08 2.84 312.95 0.91 424 1.18 292.31 423.97 1.53 2.27 -3.15 3.88 305.80 0.49 485 2.49 254.52 484.94 3.19 2.16 -5.01 5.45 293.30 2.81 545 4.92 239.02 544.81 7.02 0.48 -8.47 8.49 273.27 4.34 604 7.46 230.53 603.47 13.33 -3.25 -13.60 13.98 256.55 4.56 663 9.28 230.46 661.84 21.83 -8.72 -20.22 22.02 246.68 3.08 724 10.48 232.57 721.93 32.20 -15.22 -28.42 32.24 241.83 2.05 783 12.07 233.37 779.79 43.67 -22.16 -37.63 43.68 239.51 2.71 847 14.27 234.37 842.10 58.20 -30.75 -49.42 58.20 238.11 3.46 909 16.07 235.91 901.94 74.38 -40.01 -62.74 74.41 237.47 2.97 972 17.41 238.80 962.27 92.51 -49.78 -78.02 92.55 237.46 2.50 1035 18.08 240.88 1022.27 111.71 -59.42 -94.62 111.73 237.87 1.46 1099 19.01 242.89 1082.95 132.04 -69.01 - 112.58 132.04 238.49 1.76 1162 19.26 242.13 1142.47 152.65 -78.54 - 130.90 152.65 239.04 0.56 1225 19.69 238.58 1201.87 173.64 -88.93 - 149.14 173.64 239.19 2.00 1287 20.95 238.84 1260.01 195.17 - 100.11 - 167.54 195.17 239.14 2.04 1351 22.61 236.34 1319.44 218.90 - 112.85 - 187.57 218.90 238.97 2.97 1414 23.88 236.64 1377.32 243.74 - 126.58 - 208.30 243.74 238.71 2.02 1476 26.15 235.94 1433.50 269.92 - 141.13 - 230.11 269.94 238.48 3.69 1540 27.87 237.12 1490.52 298.96 - 157.15 - 254.35 298.99 238.29 2.81 1603 30.07 237.48 1545.63 329.46 - 173.63 - 280.03 329.49 238.20 3.50 1625 30.75 237.13 1564.61 340.59 - 179.65 - 289.40 340.63 238.17 3.19 E I EPOCH 23 i s 0 M MARATHON OIL COMPANY KDU 9 Vertical Rectangular Rectangular Closure Measured Inclination Azimuth TVD Coordinate Coordinate Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) EM, ( -) (ft ) (deg) (deg) (ft ) (ft ) (ft ) (ft ) (ft) (deg) ( deg /100ft) 1712 30.90 237.91 1639.32 385.15 - 203.59 - 327.01 385.21 238.09 0.49 1775 29.60 237.73 1693.74 416.88 - 220.49 - 353.87 416.94 238.07 2.07 1838 29.36 238.30 1748.58 447.88 - 236.91 - 380.17 447.95 238.07 0.59 1901 30.56 238.39 1803.16 479.34 - 253.42 - 406.95 479.41 238.09 1.91 1964 30.64 237.83 1857.39 511.40 - 270.36 - 434.18 • 511.48 238.09 0.47 2027 30.10 239.53 1911.74 543.25 - 286.92 - 461.38 543.32 238.12 1.61 2090 29.98 240.66 1966.28 574.78 - 302.65 - 488.72 574.84 238.23 0.92 2152 30.66 241.06 2019.80 606.07 - 317.89 - 516.06 606.11 238.37 1.14 2215 32.50 241.63 2073.47 639.03 - 333.70 - 545.01 639.06 238.52 2.96 2278 35.06 240.92 2125.83 674.03 - 350.54 - 575.72 674.04 238.66 4.11 2340 35.55 239.74 2176.43 709.85 - 368.28 - 606.85 709.86 238.75 1.35 2403 34.95 240.00 2227.88 746.21 - 386.53 - 638.30 746.21 238.80 0.98 2467 34.27 239.77 2280.55 782.55 - 404.77 - 669.75 782.56 238.85 1.08 2529 33.98 239.83 2331.88 817.33 - 422.27 - 699.81 817.34 238.89 0.47 2592 33.69 239.89 2384.21 852.41 - 439.88 - 730.14 852.41 238.93 0.46 2656 33.12 240.17 2437.63 887.64 - 457.48 - 760.67 887.64 238.98 0.92 2718 32.38 240.25 2489.78 921.17 - 474.15 - 789.77 921.17 239.02 1.20 2781 32.09 239.65 2543.07 954.77 - 490.97 - 818.86 954.77 239.08 0.69 2844 31.03 239.52 2596.75 987.74 - 507.66 - 847.30 987.74 239.07 1.69 2907 29.38 239.78 2651.19 1019.43 - 523.68 - 874.65 1019.43 239.09 2.63 2970 27.85 238.82 2706.50 1049.60 - 539.08 - 900.59 1049.60 239.10 2.54 3034 26.36 237.97 2763.47 1078.76 - 554.35 - 925.43 1078.76 239.08 2.41 3096 24.64 237.44 2819.42 1105.44 - 568.61 - 947.99 1105.44 239.04 2.80 3160 23.22 238.06 2877.92 1131.40 - 582.47 - 969.94 1131.40 239.01 2.25 3223 21.89 239.10 2936.10 1155.56 - 595.07 - 990.56 1155.56 239.01 2.20 3285 20.30 239.42 2993.94 1177.87 - 606.48 - 1009.74 1177.87 239.01 2.57 3346 18.67 237.96 3051.45 1198.22 - 617.04 - 1027.13 1198.22 239.00 2.79 3409 17.17 239.65 3111.39 1217.60 - 627.09 - 1043.70 1217.60 239.00 2.52 3472 16.22 240.79 3171.74 1235.69 - 636.08 - 1059.40 1235.69 239.02 1.59 El EPOCH 24 • • • M MARATHON OIL COMPANY KDU 9 Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) E/W ( -) (ft ) (deg) (deg) (ft ) (ft ) (ft ) (ft) (ft ) (deg) ( deg /100ft ) 3535 15.12 240.32 3232.39 1252.70 - 644.44 - 1074.22 1252.70 239.04 1.76 3599 13.98 239.78 3294.34 1268.78 - 652.47 - 1088.15 1268.78 239.05 1.79 3662 13.51 241.41 3355.54 1283.74 - 659.82 - 1101.19 1283.74 239.07 0.97 3725 12.65 242.92 3416.90 1297.97 - 666.48 - 1113.80 1297.98 239.10 1.47 3789 11.10 244.51 3479.53 1311.10 - 672.32 - 1125.60 1311.10 239.15 2.48 3852 10.13 244.38 3541.45 1322.65 - 677.33 - 1136.07 1322.66 239.20 1.54 3915 8.99 240.47 3603.58 1333.09 - 682.15 - 1145.35 1333.10 239.22 2.08 3978 7.45 238.15 3665.93 1342.10 - 686.73 - 1153.10 1342.10 239.22 2.50 4042 5.62 236.62 3729.51 1349.38 - 690.65 - 1159.24 1349.38 239.21 2.87 4105 3.57 237.63 3792.30 1354.42 - 693.39 - 1163.47 1354.42 239.21 3.26 4169 2.07 241.62 3856.22 1357.57 - 695.01 - 1166.17 1357.57 239.21 2.36 4232 1.82 244.42 3919.19 1359.70 - 695.98 - 1168.08 1359.70 239.21 0.42 4295 1.92 241.36 3982.15 1361.75 - 696.92 - 1169.91 1361.76 239.22 0.22 4359 1.85 239.89 4046.12 1363.85 - 697.95 - 1171.74 1363.86 239.22 0.13 4422 2.00 243.75 4109.08 1365.97 - 698.95 - 1173.61 1365.97 239.22 0.31 4485 2.00 237.54 4172.04 1368.16 - 700.03 - 1175.52 1368.17 239.23 0.34 4548 1.85 247.74 4235.01 1370.26 - 701.00 - 1177.39 1370.27 239.23 0.59 4611 1.84 249.89 4297.98 1372.26 - 701.73 - 1179.28 1372.27 239.25 0.11 4675 1.66 246.68 4361.95 1374.19 - 702.45 - 1181.10 1374.20 239.26 0.32 4800 1.45 247.26 4486.90 1377.55 - 703.78 -1184.22 1377.56 239.28 0.17 4927 1.43 244.86 4613.86 1380.72 - 705.08 - 1187.13 1380.73 239.29 0.05 5052 1.23 247.52 4738.83 1383.60 - 706.25 - 1189.78 1383.61 239.31 0.17 5178 1.15 252.03 4864.80 1386.17 - 707.16 - 1192.24 1386.18 239.33 0.10 5304 0.79 242.35 4990.78 1388.27 - 707.95 - 1194.21 1388.28 239.34 0.31 5431 0.60 226.94 5117.77 1389.79 - 708.81 - 1195.47 1389.81 239.34 0.21 5556 0.51 217.68 5242.77 1390.95 - 709.70 - 1196.29 1390.96 239.32 0.10 5611 0.59 248.78 5297.76 1391.45 - 710.00 - 1196.70 1391.47 239.32 0.55 5726 0.35 183.66 5412.76 1392.24 - 710.56 - 1197.28 1392.25 239.31 0.47 5914 0.43 150.37 5600.76 1392.58 - 711.75 - 1196.96 1392.59 239.26 0.13 E 1 EPOCH 25 0 0 • " MARATHON OIL COMPANY KDU 9 Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section ( +) N/S ( -) ( +) EM, (_) Azimuth (ft ) (deg) (deg) (ft ) (ft ) (ft ) (ft ) (ft ) (deg) ( deg /100ft) ' 6104 0.32 202.41 5790.75 1393.02 - 712.86 - 1196.81 1393.03 239.22 0.18 6293 0.27 214.66 5979.75 1393.85 - 713.71 - 1197.27 1393.86 239.20 0.04 6481 0.18 277.93 6167.75 1394.48 - 714.04 - 1197.81 1394.49 239.20 0.13 6670 0.10 85.83 6356.75 1394.57 - 713.98 - 1197.94 1394.57 239.20 0.15 6795 0.12 114.02 6481.75 1394.40 - 714.03 - 1197.71 1394.40 239.20 0.05 9684 0.28 40.94 6670.75 1393.84 - 713.76 - 1197.23 1393.85 239.20 0.14 7174 0.22 136.94 6860.75 1393.33 - 713.68 - 1196.68 1393.33 239.19 0.20 7363 0.35 116.11 7049.74 1392.94 - 714.19 - 1195.91 1392.94 239.15 0.09 7554 0.42 108.30 7240.74 1392.16 - 714.67 - 1194.72 1392.16 239.11 0.05 7744 0.80 125.65 7430.73 1391.18 - 715.66 - 1192.98 1391.18 239.04 0.22 7934 0.84 126.07 7620.71 1390.11 - 717.26 - 1190.78 1390.11 238.94 0.02 8123 0.46 122.65 7809.70 1389.23 - 718.48 - 1189.02 1389.24 238.86 0.20 8312 0.54 177.20 7998.69 1389.32 - 719.78 - 1188.34 1389.33 238.80 0.25 8501 0.49 177.16 8187.68 1390.12 - 721.48 - 1188.26 1390.14 238.74 0.03 8689 0.31 216.27 8375.68 1390.97 - 722.69 - 1188.52 1390.99 238.70 0.17 8879 0.22 113.56 8565.68 1391.23 - 723.25 - 1188.49 1391.26 238.68 0.22 9005 0.69 119.25 8691.67 1390.71 - 723.72 - 1187.60 1390.74 238.64 0.37 9193 0.37 121.37 8879.66 1389.87 - 724.59 - 1186.10 1389.91 238.58 0.17 9383 0.41 155.46 9069.66 1389.66 - 725.52 - 1185.29 1389.71 238.53 0.12 9572 0.10 211.47 9258.66 1389.88 - 726.28 - 1185.10 1389.94 238.50 0.19 9761 0.31 116.11 9447.66 1389.75 - 726.65 - 1184.72 1389.81 238.48 0.18 9850** 0.31 116.11 9536.65 1389.49 - 726.86 - 1184.29 1389.56 238.46 0.00 * *Projected El EPOCH 26 • • • " MARATHON OIL COMPANY KDU 9 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Types: Spud Mud 165' - 1685'; 6% KCI Flo -Pro 1685' - 9850' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H20 SD MBT pH Alk CI- Ca+ • 7/14/08 165 / 165 8.8 63 15 30 18/34/39 13.0 4 3.0 0/97 0.15 6.0 9.9 0.25 1200 40 7/15/08 543 / 543 9.1 64 14 22 18/37/39 13.0 4 4.0 0/96 0.2 16.0 9.7 0.20 400 40 7/15/08 972 / 962 9.3 62 18 22 17/39/41 11.0 4 6.0 0/94 0.25 17.5 9.9 0.30 400 40 7/16/08 1593 / 1539 9.4 60 21 17 7/18/ 7.0 2 7.0 0/93 0.25 17.0 8.7 0.05 800 200 7/16/08 1685 / 1622 9.5 63 24 21 13/32/38 7.5 2 8.0 0/92 0.2 19.0 9.3 0.20 800 160 7/17/08 1685 / 1622 9.5 63 24 21 13/32/38 7.5 2 8.0 0/92 0.2 19.0 9.3 0.20 800 160 7/18/08 1685 / 1622 9.5 63 24 21 13/32/38 7.5 2 8.0 0/92 0.2 19.0 9.3 0.20 800 160 7/19/08 1685 / 1622 8.9 48 10 14 8/11/12 8.6 1 1.5 1/98 0.5 9.3 0.20 31000 140 7/19/08 1900 / 1796 8.9 50 10 16 8/11/ 7.4 1 1.5 1/98 0.5 10.0 0.50 31500 120 7/20/08 2573 / 2368 9.2 49 12 19 10/13/ 6.5 1 3.5 2/95 Tr 2.0 9.7 0.20 31000 160 7/20/08 2900 / 2645 9.3 49 13 20 10/13/ 6.5 1 5.5 2/93 Tr 3.5 9.6 0.25 31000 440 7/20/08 3231 / 2944 9.4 49 13 23 11/15/17 6.6 1 5.5 2/93 Tr 2.0 9.7 0.05 29000 440 7/21/08 3760 / 3451 9.3 53 14 23 11/16/ 6.4 1 5.5 2/93 Tr 5.0 9.6 0.30 30500 360 7/21/08 4228 / 3915 9.4 50 14 23 11/16/ 7.0 1 6.0 2/93 Tr 5.5 9.4 0.20 30000 440 7/22/08 4998 / 4685 9.4 52 16 21 10/15/ 6.2 1 5.5 2/93 Tr 7.5 9.5 0.25 31000 400 7/22/08 5617 / 5304 9.7 58 18 25 11/19/ 6.3 1 7.0 2.92 0.1 8.5 9.7 0.35 31500 160 7/23/08 5675 / 5362 9.7 60 18 24 9/15/ 6.0 1 7.5 1/92 Tr 10.0 9.5 0.25 31500 240 7/24/08 5675 / 5362 9.7 60 18 24 9/15/ 6.0 1 7.5 1/92 Tr 10.0 9.5 0.25 31500 240 7/25/08 5675 / 5362 9.6 60 16 26 10/16/ 5.7 1 6.5 1/93 Tr 8.5 8.4 30500 240 7/26/08 5675 / 5362 9.5 56 15 22 10/16/18 6.4 1 5.5 1/94 7.5 9.4 0.20 30000 160 7/26/08 6220 / 5907 9.6 58 16 24 10/17/ 5.8 1 6.5 4/90 7.5 9.0 0.20 31500 160 7/27/08 6849 / 6536 9.8 56 17 25 11/16/ 5.6 1 9.0 5/87 Tr 8.5 9.1 0.25 30000 160 7/27/08 7671 / 7358 10.5 58 22 32 14/20/ 5.2 1 13.5 5/82 Tr 8.75 9.5 0.30 28500 200 7/28/08 8068 / 7755 10.7 62 23 33 14/21/ 6.0 1 14.5 5/81 Tr 9.0 9.5 0.25 32500 120 7/28/08 8800 / 8487 11.5 61 26 37 14/21/24 5.8 1 17.0 5/79 Tr 11.0 9.6 0.30 31500 120 El EPOCH 27 • • (M ) MARATHON OIL COMPANY KDU 9 Contractor: MI Drilling Fluids Mud Type: 6% KCI Flo -Pro 1685' - 9850' DATE MD I TVD MW VIS PV YP GELS FL FC SOL OIL /H2O SD MBT pH AIk CI- Ca+ 7/29/08 8955 / 8642 12.1 69 31 35 16/23/ 6.2 2 21 4/75 Tr 12.5 9.6 0.35 29500 120 7/30/08 8955 / 8642 12.3 74 31 42 16/24/ 6.2 2 22.5 4/74 0.1 12.5 9.5 0.35 29500 120 7/31/08 8955 / 8642 12.2 82 26 44 16/23/ 6.0 2 23 4/73 Tr 11.5 9.2 0.20 29500 120 8/01/08 8955 / 8642 12.2 82 26 44 16/23/ 6.0 2 23 4/73 Tr 11.5 9.2 0.20 29500 120 8/02/08 8975 / 8662 9.2 45 12 19 8/12/ 4.2 1 4.5 2/94 Tr 3.5 8.6 28000 160 8/03/08 8975 / 8662 11.0 51 16 20 7/10/12 5.0 1 12.3 2/86 Tr 9.9 0.55 32000 160 8/04/08 9050 / 8737 11.0 52 17 18 7/10/11 5.1 1 12.3 2/86 Tr 9.8 0.50 32000 160 8/04/08 9238 / 8925 10.9 54 15 25 8/11/12 4.8 1 11.9 2/86 Tr 10.1 0.55 32000 150 8/05/08 9790 / 9477 10.6 53 15 22 8/11/12 4.6 1 10.7 2/87 Tr 1.0 9.9 0.50 32000 160 8/05/08 9850 / 9537 10.6 53 15 21 8/11/12 4.6 1 11.0 2/87 Tr 1.0 9.8 0.50 32000 160 8/06/08 9850 / 9537 10.6 53 15 21 8/11/12 4.6 1 11.0 2/87 Tr 1.0 9.8 0.50 32000 160 8/07/08 9850 / 9537 10.6 62 16 23 8/11/12 4.6 1 11.5 2/87 Tr 1.0 9.5 0.45 32000 160 8/08/08 9850 / 9537 10.7 62 16 24 8/11/12 4.8 1 11.8 2/86 Tr 1.0 9.2 0.40 31000 150 8/08/08 9850 / 9537 10.7 61 16 25 8/11/12 4.8 1 11.8 2/86 Tr 1.0 9.8 0.45 31000 150 8/09/08 9850 / 9537 10.7 60 16 23 8/12/12 4.8 1 11.7 2/86 Tr 1.0 9.7 0.50 32000 150 8/10/08 9850 / 9537 8.6 KCL Brine 30000 8/11/08 9850 / 9537 8.7 KCL Brine 31000 8/12/08 9850 / 9537 8.6 KCL Brine 31000 El EPOCH 28 • M • • ""'�"'°" MARATHON OIL COMPANY KDU 9 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 RR 16" HTC 6057166 3x18, 165 1685 1520 16.80 138.1 0.5 — 8.5 — 45 366 —1232 1- 1- SS- M- E- 1 -WT -TD MX -1 1x16cj 27.2 — 1789 2 12.25 HCC 7013741 6x13 1685 5675 3990 37.19 130.0 0.4 — 8.3 — 85 599 —1296 1 -1 CT- T- X- 1 -NO -TD HCM506Z 27.7 — 1760 3 8.5" HCC 7114328 3x13, 5675 8955 3280 30.31 124.1 1.1 — 10.8 — 70 770 — 1774 1- 1- CT- S- X -1 -WT -LOG HCM503ZX 3x14 27.5 — 2324 4RR 6.125 HCC 5124998 Open 8955 8975 20 0.53 63.2 2.8 — 8.7 46 910 —1050 1- 1- WT- A- E -1 -WT -BHA STX1 1.0.7 — 2068 5 6.125 HCC HCM 5x12 8975 9850 875 15.98 60.2 1.2 — 7.1— 66 1306 — 1688 3- 3- WT- N- X- 1 -NO -TD HCM505ZX 5057X 22.5 — 2265 4RR 6.125 HCC 5124998 Open 9050 9050 0 n/a n/a n/a n/a n/a NG 2 STX1 Clean out run only El EPOCH 29 DEPTH (FT) O co CO �I 0) 01 A (,.> N) 1 • O 0 0 0 0 0 0 0 0 O O 0 0 0 0 0 0 0 0 O O O O O O O O O O O O 7/12/2008 „ ,,,, ,,,, ,, • in 7/13/2008 - • CD 7/14/2008 - r- 7/15/2008 - z 0 7/16/2008 - 7/17/2008 - • O G7 7/18/2008 - m 7/19/2008 - 0 2 7/20/2008 - n 7/21/2008 - ~ 7/22/2008 - 1--" r illill 7/23/2008 - • D 7/24/2008 - • I ( 7/25/2008 - 0 Z 0 7/26/2008 - 0 n 0 F -� 7/27/2008 - n ° 0 a /28/2008 - ( -< D -1 N m 7/29/2008 - x m Z ° 7 -< C N 7/30/2008 - fn N 7/31/2008 - m C x 8/1/2008 - 8/2/2008 - 8/3/2008 - 8/4/2008 - 8/5/2008 8/6/2008 - l l l l 8/7/2008 -• i TT_+T 8/8/2008 -• - - N 0) ■ N ' 00 _ 8/9/2008 ♦ - - A o _ _ - m o o = 8/10/2008 • c c o m 8/11/2008 -• • w 0 8/12/2008 8/13/2008 • Marathon Oil Company EPOCH III Kenai Gas Field DAILY WELLSITE REPORT Ell KDU 9 REPORT FOR Rowland Lawson / Dan Byrd DATE Jul 12, 2008 DEPTH 165 PRESENT OPERATION General rig up operations TIME 24:00 YESTERDAY 165 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 165' 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 Finish rig down operations at KU 12 -17. Prepare for moving all Glacier No.1 components across the Kenai Gas Field from the 41 -18 Pad to the 41 -7 Pad. Set liner and matting boards in place around well head at KDU 9. Begin moving trailer loads of equipment and supplies from KU 12 -17 and unloading at KDU 9. Move off forklifts, man -rider and mule in advance to position all arriving pieces. Move sub -base off KU 12 -17 well head DAILY and lower. Move sub -base, pits, pump room, carrier, generator house, boiler house, water tank, parts house, mechanic shop, mud boat, Hanson ACTIVITY tank and cuttings tank and smaller rig components to KDU 9 location. Organize, spot, position in place, rough -in connection points, draw together, SUMMARY and plug in all rig components. Rig down, transport, move, organize, spot and set up all camp trailers while rig components are being assembled. Flip carrier ramp. Fold wings down on sub -base and scope up. Level carrier. Install turnbuckles. Prep for and raise derrick. Install guard rails on top of boiler room, generator house, pit room and pump room. Begin pulling wires from generator to pits. Install pop -offs in pits. Run water line to the rig and camp. Fill water tanks. Change out air bags in pump room pallet lift. Replace electrical cord to sub -base lights. Begin spotting components for craning operations. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 350 REPORT BY Craig Silva ill Marathon Oil Company Ell III Kenai EPOCH i Gas Field DAILY WELLSITE REPORT KDU 9 REPORT FOR Rowland Lawson / Dan Byrd DATE Jul 13, 2008 DEPTH 165 PRESENT OPERATION General rig up operations TIME 24:00 YESTERDAY 165 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 165' 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 III 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 Begin crane operations. Pick up and set in place fuel tank, panic line, flowline, derrick house, Poor Boy, stairs from carrier on driller's side, back landings, V -door, wind walls, Gray Iron, dog house, choke house, beaver slide, BOP conex and rig stairs. Set and pin top landing and wind walls. Pull and plug in wires for dog house and choke house. Turn on interior lighting on rig floor. Raise gas buster. Stand mast. Prep and scope up derrick. Secure guide lines. Rig up service lines. Charge all air and water lines around rig. Install new skirt on pallet lift. Heat boiler up. Rig up brake linkage. Rig up, plug in driller's console and PLC, and briefly function check. Rig and install degasser lines and sleeves. Run choke lines. Between the pit and pump rooms, install dresser sleeves for all mix and charge (centrifugal) pumps and pop -off lines that come off the high and low pressure DAILY feed lines between pumps #1 and #2. Straighten out electrical cables originating from the bulkhead on the generator house. Put softener in place. ACTIVITY Set catwalk in place and secure. Spot M -I solids van. Spot #3 pump module. Spot parts house and mechanics shop. Load and set trip tank in SUMMARY place. Install pump on outside of trip tank. Prep for rigging up torque tube. Pick up and install T -bar. Lay out, hang and bolt up torque tube. Install cylinder socks on derrick rams. Rig up shock hoses to pumps. Install and adjust turnbuckles. Install choke hose. Fill pits with water and begin mixing spud mud. Receive fuel. Troubleshoot Gaitronics problem at camp. Pick up and rig up Topdrive. Replace compensator cylinder. Install all fluid and electrical lines to #3 mud pump. Change out saver sub on Topdrive to 4 1/2" IF. Check crown -o- matic. Test carrier drive transmission. Repair Epoch RPM sensor line. Secure service loop for lines to Topdrive. Finish mixing spud mud. Rig up all equipment on rig floor. Hang tongs and pipe spinner. Prep rig floor mud manifold. Drop 2" kill line and floor bleeders in place. Set up pipe racks and begin loading with 5" drill pipe. Rig up bails and elevators. Change out elevator inserts to 5 ". Function test and make final adjustments on Topdrive and carrier. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 Rig up: 2125 REPORT BY Craig Silva 1 Marathon Oil Company El III Kenai Gas Field DAILY WELLSITE REPORT EPOIIiE[ KDU 9 REPORT FOR Rowland Lawson / Dan Byrd DATE Jul 14, 2008 DEPTH 201 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 165 24 HOUR FOOTAGE 36 CASING INFORMATION 20" @ 165' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 184 0.44 325.46 184.00 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR 16.0 HTC MX -1 6057166 3x18 1x16cj 165 36 0.69 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 239.4 @ 189 10.9 @ 188 107.6 92.1 FT /HR SURFACE TORQUE 2593 @ 180 1609 @ 166 1929.1 1855.6 AMPS WEIGHT ON BIT 8.7 @ 180 0.9 @ 170 3.7 3.2 KLBS ROTARY RPM 29 @ 185 26 @ 169 29.3 29.3 RPM PUMP PRESSURE 575 @ 197 366 @ 168 473.1 568.6 PSI DRILLING MUD REPORT DEPTH 165 / 165 TVD MW 8.8 VIS 63 PV 15 YP 30 FL 13.0 Gels 18/34/39 CL- 1200 FC 4 SOL 3.0 SD 0.15 OIL 0/97 MBL 6.0 pH 9.9 Ca+ 40 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 Test ESDs. Change out alternator on #2 carrier. Change fitting on bridge crane. Pepare to install starter head. Install cellar grating. Cut and dress 20" conductor. Install 20" SLC by 21 1/4" 2M flanged starter head. Test seals to 3000psi for 10 minutes. Weld 2" valve for kill line on 20" conductor. Prep to nipple up diverter. Set 21 1/4" diverter stack in place and nipple up. Install 16" diverter line, knife valve, riser pipe, flowline and hoses to trip tank. Function test BOPs and knife valve. Prime all three mud pumps and checked for leaks. Run and test all mix and charge pumps. DAILY Calibrate pit volume sensors. Test all gas alarms. Work on rig floor alarms. Add on joint to diverter and do performance test on all components of ACTIVITY diverter system. Install mouse hole. Change out gas detector light bar on rig floor. Finish general rig up operations and perform rig inspection. SUMMARY Hang back red tugger line. Complete rig audit. Pick up off racks, drift, make up and stand back in derrick 54 joints (27 stands) of 5" drill pipe. Pick up, dirft make up and stand back 21 joints of 5" HWDP plus jars (11 stands) in derrick. Pick up and make up first group of directional tools (16" bit, 8" motor, crossover). Run in and tag fill at 29'. Clean out 20" conductor from 29' to 163'. Pull out of hole to crossover. Break and lay down crossover. Pick up, make up and add NM pony flex collar and NM top stabilizer (and crossover again) to directional tools. Run assembly back in with 5" HWDP to 163'. Clean out conductor from 163' to 165'. Drill out of conductor and Spud Well at 23:06 hours on 7/14/2008. Drill from 165' to 201'. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1275 ML: 585 REPORT BY Craig Silva • I Marathon Oil Company (� II Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR John Nicholson / Dan Byrd DATE Jul 15, 2008 DEPTH 1124 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 201 24 HOUR FOOTAGE 923 CASING INFORMATION 20" @ 165' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 184 0.44 325.46 184.00 424 1.18 292.31 423.97 SURVEY DATA 663 9.28 230.46 661.84 909 16.07 235.91 901.94 1099 19.01 242.89 1082.95 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR 16.0 HTC MX -1 6057166 3x18 1x16cj 165 959 10.95 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 521.5 @ 579 4.8 @ 210 143.3 65.0 FT /HR SURFACE TORQUE 4911 @ 1002 0 @ Sliding 1011.1 Sliding AMPS WEIGHT ON BIT 22.4 @ 595 0.5 @ 539 6.8 8.1 KLBS ROTARY RPM 45 @ 1082 0 @ Sliding 28.3 Sliding RPM PUMP PRESSURE 1491 @ 1069 550 @ 212 1103.7 1342.2 PSI DRILLING MUD REPORT DEPTH 972 / 962 TVD MW 9.3 VIS 62 PV 18 YP 22 FL 11.0 Gels 17/39/41 CL- 400 FC 4 SOL 6.0 SD 0.25 OIL 0/94 MBL 17.5 pH 9.9 Ca+ 40 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 Drill from 201' to 223'. Circulate bottoms up. Continue to circulate and clean hole. Pull out of hole standing back 5" HVVDP from 223' to 46'. Lay DAILY down steel crossover. (Bit, steerable motor, NM pony flex collar, NM top stabilizer still in hole). Pick up, make up and run in hole remaining tools (MV VD, of directional bottom hole assembly (MD, crossover, 3 CSNMDPs, crossover, pin -pin crossover, box -box shock sub, crossover) to 186'. Wash SUMMARY down from 186' and tag bottom at 223' (with no significant fill). Drill (rotating and sliding) from 223' to 1032'. PLC controls becoming very problematic for driller. Cease drilling and circulate on one pump while troubleshooting and correcting PLC problems. Function test PLC controls and resume drilling. Drill (rotating and sliding) from 1032' to 1124'. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1275 RW: 585 REPORT BY Craig Silva 1 Marathon Oil Company EPOCH III Kenai Gas Field DAILY WELLSITE REPORT HI KDU 9 REPORT FOR John Nicholson / Mitch Bums DATE Jul 16, 2008 DEPTH 1685 PRESENT OPERATION Rigging up to run 13 3/8" Casing TIME 24:00 YESTERDAY 1124 24 HOUR FOOTAGE 561 CASING INFORMATION 20" @ 165' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1162 19.26 242.13 1142.47 1287 20.95 238.84 1260.01 SURVEY DATA 1414 23.88 236.64 1377.32 1603 30.07 237.48 1545.63 1685 (Projection) 32.60 238.00 1615.67 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR 16.0 HTC MX -1 6057166 3x18 1x16cj 165 1685 1520 16.80 1- 1- SS- M- E- 1 -WT -TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 367.9 @ 1492 10.1 @ 1258 132.1 82.6 FT /HR SURFACE TORQUE 5881 @ 1597 0 @ Sliding 1060.5 Sliding AMPS WEIGHT ON BIT 27.2 @ 1614 0.9 @ 1272 11.7 7.5 KLBS ROTARY RPM 46 @ 1154 0 © Sliding 44.0 Sliding RPM PUMP PRESSURE 1789 © 1495 1262 @ 1139 1494.6 1557.1 PSI DRILLING MUD REPORT DEPTH 1685 / 1616 TVD MW 9.5 VIS 63 PV 24 YP 21 FL 7.5 Gels 13/32/38 CL- 800 FC 2 SOL 8.0 SD 0.2 OIL 0/92 MBL 19.0 pH 9.3 Ca+ 160 CCI 0 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 Drill (rotating and sliding) from 1124' to 1685'. Circulate bottoms up. Pump and circulate around Hi -Vis sweep. Circulate hole clean. Pull out of hole (SLM with no correction) from 1685' to 150' (just inside conductor) on wiper trip. Service blocks and crown. Run back in hole from 150' to 1685' (with no fill). Circulate bottoms up and continue to circulate hole clean. Pull out of hole with 5" drill pipe to 845'. Pull and stand back 5" DAILY HWDP and jars. Break and lay down 3 crossovers and shock sub. Pull and stand back first 2 CSNMDPs. Break and lay down remaining ACTIVITY directional tools (bottom CSNMDP, crossover, MWD, NM stabilizer, NM pony collar, motor, bit). Inspect all connections while pulling and laying SUMMARY down bottom hole assembly. Note bad threads on bottom CSNMDP, top and bottom of MWD tool and top of string stabilizer. Load off crossovers from floor. Clean rig floor. Lay down bit handling tools. Prepare to run 13 3/8" surface casing. Lay down bit handling tools. Change out from short to long bails. Lay down pipe elevators. Install pick -up line. Move breakout tongs to drillers side and install correct tong head. Install fill -up line. Install casing elevators. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1275 RW: 585 REPORT BY Craig Silva III Marathon Oil Company Ell Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR John Nicholson / Mitch Bums DATE Jul 17, 2008 DEPTH 1685 PRESENT OPERATION Prepping to rig down diverter stack TIME 24:00 YESTERDAY 1685 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1675' 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 1685 / 1616 TVD MW 9.5 VIS 63 PV 24 YP 21 FL 7.5 Gels 13/32/38 CL- 800 FC 2 SOL 8.0 SD 0.2 OIL 0/92 MBL 19.0 pH 9.3 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 1 @ 0 @ 0 TRIP GAS 1 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Rig up and test stabbing board. Rig up casing tongs and tall snub post. Remove rotary bushings and rig up casing spider slips. Tie one tugger line back in derrick for pipe pick -up and second tugger line back to hang casing tongs. Rig up Weatherford power tongs. Make up EZ -turn valve onto casing swage for safety valve and function check (and record in IADC). Stage centralizers and lock rings on rig floor. Clean casing threads of each shoe track joint before make up. Hold pre -job meeting with Weatherford hands on procedures and safety for running surface casing. Pick up, Bakerlok, make up and run in hole 13 3/8" shoe track (shoe joint, spacer joint, sting -in float collar) and run in hole. Check floats. Continue running in hole with 13 3/8" casing as per Marathon to 1665'. Break circulation. Wash down from 1665' and set shoe at 1675'. (Note slick casing run with no fill on bottom). Circulate hole clean. Rig down and load off all Weatherford casing running equipment. Rig down fill up line. Clear rig floor. Change out bails, elevators, tongs and snubbing post to handle and run 5" drill pipe. Prep pipe spinner. Make up inner string tools (stab -in sub, 5' pup and centralizer) on 5" drill pipe. Rig up false rotary for running 5" drill pipe inside 13 3/8" casing. Run in hole with 5" drill pipe and stab -in sub to top of DAILY float collar at 1630'. Rig up cementing line. Tag and sting into float collar and space out. Circulate and condition hole. Record 1 unit of trip gas. ACTIVITY Pump 160 bbls of mud to Hanson Tank prior to cementing. Build 40 bbl SAPP spacer. Rig up cementing lines. Hold pre -job meeting with BJ SUMMARY cementers on safety and procedures for cement job. Pump 40 bbls of 8.4ppg Mud Clean II (with 1 gallon red dye added) using rig pumps. Switch over to BJ pumping unit. Pump 1.6 bbls of water and pressure test cement lines to 2827psi. Bleed off pressure. Batch cement to 12.0ppg. Pump 184.0 bbls of 12.0ppg cement slurry (416 sacks Type I LW -6 cement and accelerator additives to 102.0 bbls of mix water for 10.328 gal water /sack and yield of 2.483 cu ft per sack). Pump cement slurry and then follow with 2.6 bbls of water and 23.8 bbls of 9.5ppg mud to displace. Check floats. Cement in place. No losses during pumping with good excess cement returns to surface. Note 37 bbls of cement retums pumped into cellar. Cement returns treated with citric acid retarder. Rig down and flush cementing head and lines and continue rigging down BJ. Unsting from float collar. Float holding. Pull one joint to 1598' and rig up to pump ball down pipe. Pump wiper ball down to clear drill pipe of any residual cement. Treat all mud returns for traces of cement product. Dump returns during and after pumping ball. Finish pumping. Rig up false rotary table and pull out of hole from 1598'. Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). Rig down false rotary. Flush, re -flush and drain 20" by 13 3/8" annulus, flowline and mud lines. Pull plate. Clear and clean rig floor and cellar. III EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 REPORT BY Craig Silva Marathon Oil Company EPOC}T1I • Kenai Gas Field DAILY WELLSITE REPORT El KDU 9 REPORT FOR John Nicholson / Mitch Burns DATE Jul 18, 2008 DEPTH 1685 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 1685 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1675' 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 1685 / 1616 TVD MW 9.5 VIS 63 PV 24 YP 21 FL 7.5 Gels 13/32/38 CL- 800 FC 2 SOL 8.0 SD 0.2 OIL 0/92 MBL 19.0 pH 9.3 Ca+ 160 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 Wait on cement. Prep diverter for nipple down. Pump out and haul off spud mud and begin cleaning pits. Nipple down and remove diverter line and knife valve. Disconnect turnbuckles to stack and secure out of the way. Nipple down and rig down fill -up line, bleeder line, trip tank line, flow line, kill line, 2" valve, actuator and scaffolding. Remove and lay down mousehole. Change out HCR valve on stack. Make rough cut on 13 3/8" casing and lay down section (20.89'). Nipple down bell nipple. Nipple down and move flowline extension aside. Nipple down, set in rack and load off diverter stack. Continue cleaning pits. Begin loading 5" drill pipe for next hole section on pipe racks. Prepare to lift off starter head. Change bails. Secure to bridge crane. Remove starter head. Make cut on 20" conductor and lay down section. Make final dressed cut on 13 3/8" casing and lay DAILY down section. Install 13 3/8" slip -lock connection by 13 5/8" 5M flanged multi -bowl wellhead and test to 1500psi for 15 minutes. Finish cleaning pits ACTIVITY and begin building 9.2ppg Flo -Pro mud system. Install flowline extension and DSA spacer spool. Install BOP stack. Pick up annular preventer with SUMMARY bridge crane. Pull plug from annular. Put 5' doublegate on rack, spot under annular and nipple up. Rack, stack, bolt up and hammer up mud cross and 5" single gate to the double gate and annular preventer. Install choke hardline and adaptor spool. Install check valve and kill line. Install quick connects on annular. Make up connects to blind rams. Nipple up pitcher nipple and flow line adaptor. Install bleeder lines. Install trip tank hose. Install trip tank valve and actuator. Chain up turnbuckles to stack and level out. Rig up panic line. Prepare to test BOPE. Pull wear ring. Set test plug. Rig up testing equipment. Test all gas alarms. Test all BOPE to 250psi Low / 5000psi High for 10 minutes (annular, upper pipe rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside kill, HCR, manual choke, lower pipe rams, blind rams, CMVs 1 -12). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 REPORT BY Craig Silva • Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH • KDU 9 REPORT FOR John Nicholson / Mitch Burns DATE Jul 19, 2008 DEPTH 1981 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 1685 24 HOUR FOOTAGE 296 CASING INFORMATION 13 3/8" @ 1675' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1712 30.90 237.91 1639.32 1775 29.60 237.73 1693.74 SURVEY DATA 1901 30.56 238.39 1803.16 1964 30.64 237.83 1857.39 2027 30.10 239.53 1911.74 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1685 296 3.03 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 257.2 @ 1860 22.2 @ 1706 115.2 92.3 FT /HR SURFACE TORQUE 6783 @ 1893 0 @ Sliding 2793.3 8.1 AMPS WEIGHT ON BIT 17.1 @ 1918 1.0 @ 1700 5.9 3.8 KLBS ROTARY RPM 57 @ 1960. 0 @ Sliding 48.8 Sliding RPM PUMP PRESSURE 1228 @ 1973 599 © 1789 825.8 1218.4 PSI DRILLING MUD REPORT DEPTH 1900 / 1802 TVD MW 8.9 VIS 50 PV 10 YP 16 FL 7.4 Gels 8/11/ CL- 31500 FC 1 SOL 1.5 SD 0 OIL 1/98 MBL 0.5 pH 10.0 Ca+ 120 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 15 @ 1887 1 @ 1713 8.4 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 3099 @ 1887 261 @ 1713 1683.0 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 5 / 12 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Perform accumulator drawdown test. Rig down testing equipment. Pull test plug. Continue building Flo -Pro mud system. Check PVT alarms. Test casing to 1500psi for 30 minutes. Set in wear ring. Install elevators. Pick up and prepare pipe handling tools on rig floor. Pick up, drift, make up, run in hole, pull out standing back in the derrick and strap two 24 joint batches and one 30 joint batch (78 joints total) of pre - staged 5" drill pipe off the pipe racks. Align Topdrive rail and and pipe to center of well. Lay down 2 CSNMDPs. Pick up, make up and run in hole new directional DAILY assembly (bit, motor, NM stabilizer, pony NMDC, MWD, MWD crossover). Orient MD tools. Make up and run in hole remaining directional tools (3 ACTIVITY NMCSDP flex joints, crossover). Make up crossover to first stand of HW W DP from derrick and run in hole with HDP and jars to 826'. Test MWD SUMMARY pulse signal. Strap, pick up, drift, make up, run in hole 22 more joints (11 stands) of pre - staged and prepped 5" drill pipe off the pipe racks to 1521'. Install corrosion ring in next stand of 5" drill pipe to be added to string. Wash down with pipe out of derrick from 1521' and tag float collar at 1629'. Drill out float equipment, remaining shoe tract (cement, shoe at 1675', rathole to 1685') and 20' of new hole from 1685' to 1705'. Circulate bottoms up. Displace spud mud by pumping 25 bbl water spacer, 43 bbl Hi -Vis sweep and 230 bbls of new 8.9ppg Flo -Pro mud. Cease pumping. Perform Formation Integrity Test to 13.0ppg EMW. Pump up compensator for Topdrive. Drill ahead. Build mud volume in 50 bbl batches while drilling. Drill (rotating and sliding) from 1705' to 1981'. 0 EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR John Nicholson / Mitch Burns DATE Jul 20, 2008 DEPTH 3532 PRESENT OPERATION Circulating before wiper trip TIME 24:00 YESTERDAY 1981 24 HOUR FOOTAGE 1551 CASING INFORMATION 13 3/8" @ 1675' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2090 29.98 240.66 1966.28 2340 35.55 239.74 2176.43 SURVEY DATA 2718 32.38 240.25 2489.78 3096 24.64 237.44 2819.42 3409 17.17 239.65 3111.39 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1685 1847 16.16 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 232.0 @ 2913 4.4 @ 3477 142.9 150.6 FT /HR SURFACE TORQUE 9987 @ 2935 0 @ Sliding 4714.0 7198.8 AMPS WEIGHT ON BIT 26.3 @ 2608 0.9 © 2272 6.9 9.6 KLBS ROTARY RPM 96 @ 3112 0 @ Sliding 79.3 92.6 RPM PUMP PRESSURE 1470 @ 3176 897 @ 2179 1220.6 1330.7 PSI DRILLING MUD REPORT DEPTH 3231 /2944 TVD MW 9.4 VIS 49 PV 13 YP 23 FL 6.6 Gels 11/15/17 CL- 29000 FC 1 SOL 5.5 SD Tr OIL 2/93 MBL 2.0 pH 8.7 Ca+ 440 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 36 @ 3531 2 @ 3355 11.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 7362 @ 3531 414 @ 3355 2185.6 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 5 / 18 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill (rotating and siding) from 1981' to 3532'. Circulate bottoms up. Circulate hole clean prior to wiper trip. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 REPORT BY Craig Silva I ill Marathon Oil Company III Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR John Nicholson / Mitch Burns DATE Jul 21, 2008 DEPTH 4481 PRESENT OPERATION Finishing ciruclating before pulling 1st stand on wiper trip TIME 24:00 YESTERDAY 3532 24 HOUR FOOTAGE 949 CASING INFORMATION 13 3/8" @ 1675' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3472 16.22 240.79 3171.74 3662 13.51 241.41 3355.54 SURVEY DATA 3915 8.99 240.47 3603.58 4169 2.07 241.62 3856.22 4359 1.85 239.89 4046.12 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1685 2796 26.11 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 413.2 @ 3805 8.5 @ 3943 127.0 87.6 FT /HR SURFACE TORQUE 14067 @ 4112 0 @ Sliding 6314.5 8943.3 AMPS WEIGHT ON BIT 27.7 @ 3597 0.5 @ 4247 8.9 8.0 KLBS ROTARY RPM 96 @ 3719 0 @ Sliding 62.5 89.0 RPM PUMP PRESSURE 1584 @ 3841 1112 @ 3913 1323.4 1293.3 PSI DRILLING MUD REPORT DEPTH 4228 / 3915 TVD MW 9.4 VIS 50 PV 14 YP 23 FL 7.0 Gels 11/16/ CL- 30000 FC 1 SOL 6.0 SD Tr OIL 2/93 MBL 5.5 pH 9.4 Ca+ 440 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 98 @ 4440 2 @ 3979 37.5 TRIP GAS CUTTING GAS @ @ WIPER GAS 5 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 19600 @ 4440 578 @ 3979 7460.4 CONNECTION GAS HIGH ETHANE (C -2) 21 @ 4441 0 @ 1.7 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 3 / 56 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish circulating hole clean at 3532'. Check for flow. Pull out of hole (30 stands) from 3532' to 1640'. Service rig (topdrive, block and crown, DAILY carrier). Note 2 bbls static mud losses while servicing rig. Run back in hole from 1640' to marginally tight spot at 3498'. Wash down from 3498' ACTIVITY to bottom at 3532'. Pump around 30 bbl Hi -Vis sweep. Record 5 units of wiper gas. Observe significant increase in cuttings over shakers as SUMMARY sweep comes around. Drill (rotating and sliding) from 3532' to 4481'. Circulate bottoms up and continue to circulate hole clean for wiper trip. Spot 50 bbl LCM pill on bottom before tripping. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 REPORT BY Craig Silva • Marathon Oil Company EPOCH III Kenai Gas Field DAILY WELLSITE REPORT El KDU 9 REPORT FOR John Nicholson / Mitch Bums DATE Jul 22, 2008 DEPTH 5675 PRESENT OPERATION Wiper trip after drilling to intermediate casing point TIME 24:00 YESTERDAY 4481 24 HOUR FOOTAGE 1194 CASING INFORMATION 13 3/8" @ 1675' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4422 2.00 243.75 4109.08 4675 1.66 246.68 4361.95 SURVEY DATA 5052 1.23 247.52 4738.83 5431 0.60 226.94 5117.77 5675 (Projection) 0.59 248.78 5361.76 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1685 5675 3990 37.19 In Hole Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 203.6 @ 4616 29.3 @ 5050 119.6 39.6 FT /HR SURFACE TORQUE 15381 @ 5497 7724 © 4714 10772.8 11220.7 AMPS WEIGHT ON BIT 25.2 @ 4799 1.4 @ 5610 10.4 11.1 KLBS ROTARY RPM 91 @ 4484 75 @ 5630 87.2 87.0 RPM PUMP PRESSURE 1760 @ 5434 1177 @ 4545 1490.9 1578.3 PSI DRILLING MUD REPORT DEPTH 5617 / 5304 TVD MW 9.7 VIS 58 PV 18 YP 25 FL 6.3 Gels 11/19/ CL- 31500 FC 1 SOL 7.0 SD 0.1 OIL 2/92 MBL 8.5 pH 9.7 Ca+ 160 CCI 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 253 @ 5643 16 @ 5113 72.4 TRIP GAS CUTTING GAS @ @ WIPER GAS 13 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 50929 @ 5643 3195 @ 5113 14424.6 CONNECTION GAS HIGH ETHANE (C -2) 31 @ 4539 0 @ 3.9 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A (wiper trip) PENTANE (C -5) @ © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pull out of hole (15 stands) from 4481' to 3532' on wiper trip. Run back in hole from 3532' to 4418'. Note rate of static mud loss at 1 bph during DAILY wiper trip. Wash from 4418' to bottom at 4481' (with no fill). Record 13 units of wiper gas. Drill from 4481' to 5675'. Circulate bottoms up and ACTIVITY continue to circulate hole clean. Monitor well. Estimate rate of static mud loss at 2 bph prior to wiper trip. Pull out of hole (35 stands) from 5675' SUMMARY to 3465' on wiper trip. Work through tight zones on way out at 5335', 5048', 4956', 4864'. Kelly up and ream through sticky zone at 4956'. Run back in hole from 3465' to 3781' on way to bottom. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 REPORT BY Craig Silva III II Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR John Nicholson / Mitch Bums DATE Jul 23, 2008 DEPTH 5675 PRESENT OPERATION Running in 9 5/8" casing in hole TIME 24:00 YESTERDAY 5675 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1675' 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 12.25 HCC HCM506Z 7013741 6x13 1685 5675 3990 37.19 1- 1- CT- T- X- 1 -NO -TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5675 / 5362 TVD MW 9.7 VIS 60 PV 18 YP 24 FL 6.0 Gels 9/15/ CL- 31500 FC 1 SOL 7.5 SD Tr OIL 1/92 MBL 10.0 pH 9.5 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS III GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 87 @ WG at 5675 3 @ spotting LCM pill 18 circ before POOH TRIP GAS CUTTING GAS @ @ WIPER GAS 87 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) © @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running back in hole from 3781' and tag minor ledge at 5124'. Fill pipe and then ream, briefly backream, and clean from 5124' to 5238'. Continue running in hole from 5238' and tag minor ledge at 5648'. Kelly up. Break circulation. Ream through ledge and wash down from 5648' to 1 5661'. Shut pumps off. Continue running in and take slight increase in weight at 5670'. Estimate 5' of fill. Wash last 5' to bottom at 5675'. Circulate bottoms up. Record 87 units of wiper gas. Pump around 30 bbl Hi -Vis sweep. Circulate hole clean. Spot 50 bbl LCM pill on bottom. Pull out of hole (SLM with no correction) with 5" drill pipe from 5675' to top of bottom hole assembly at 826'. Pull and stand back 21 joints 5" HWDP plus crossover and jars (llstands) to 165'. Break, lay down and load off directional tools (crossover, 3 NMCSDP flex joints, crossover, MWD, NM pony collar, NM stabilizer, bit). Clear and clean rig floor. Rig down, lay down and organize handling tools. Clean rig floor and cellar. Pull wear bushing. Hold pre -job meeting on changing rams. Close blind rams. Change out upper 2 7/8" by 5 1/2" variable pipe rams to 9 5/8" casing rams. Run test plug. Pick up, DAILY make up and install test joint. Rig up test equipment. Test casing rams to 250psi Low / 2500psi High for 5 minutes. Rig down test equipment. Pull ACTIVITY test plug. Prep to make gauge run with 9 5/8" casing hanger. Close annulus valve. Using single joint elevators, drift BOPs with landing joint and SUMMARY hanger. Mark elevation on landing joint. Move breakout tongs to driller's side and install correct tong head. Remove elevators and short bails. Install Lafleur fill -up tool. Install long bails and pick -up sling -line. Install casing elevators. Move torque tube back in derrick for clearance. Rig up and function stabbing board. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. 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 intermediate casing string. Inspect rig -up. Pick up shoe joint to start run -in and immediately note incorrect size of stabbing guide in elevators. Wait on Weatherford while 9 5/8" stabbing guides are transported to the rig. Prep and change out correctly sized stabbing guide in elevators. Run in hole with 9 5/8" casing as per Marathon program. Clean and Bakeriok casing threads on successive shoe track joints during make up. Pick up and make up shoe track (shoe joint, spacer joint, float collar) and run in hole to 85'. Circulate casing volume through shoe track and check float equipment. • EPOCH PERSONNEL ON BOARD 2 DAILY COST ML; 2425 RW: 585 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT till EPOCH KDU 9 REPORT FOR John Nicholson / Mitch Bums DATE Jul 24, 2008 DEPTH 5675 PRESENT OPERATION Waiting on cement, preparing to change rams TIME 24:00 YESTERDAY 5675 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5668' 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 5675 / 5362 TVD MW 9.8 VIS 60 PV 18 YP 27 FL 6.0 Gels 9/15/ CL- 31500 FC 1 SOL 7.5 SD Tr OIL 1/92 MBL 10.0 pH 9.5 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 9 @ TG at casing pt 1 @ at finish of displ 4 Cond before cmtjob TRIP GAS 9 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running 9 5/8" casing in hole as per Marathon. Attach centralizers as per tally and fill every joint on way in. Run casing from 85' to 1635' (inside shoe). Break circulation and fill pipe. Continue running 9 5/8" casing in hole from 1635' to 3637'. Break circulation and circulate bottoms up. Record 4 units maximum gas. Spot 50 bbl LCM pill in casing. Continue to run in with 9 5/8" casing from 3637' to 5620'. Position fill -up tool so joint can be circulated down. Open and remove spider slips. Break circulation and wash down from 5620' to landing depth of 5667.70'. Record 9 units maximum gas while washing down. Land hanger on load shoulder in multi -bowl wellhead. Drain stack and verify landing. Make up cementing head with top and bottom plugs pre - installed. Continue to circulate and condition mud prior to cement job. BJ begins batching up 10.5ppg cement while the rig is conditioning the mud. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Finish circulating with rig pumps. Blow air through cement valves and lines to clear. Switch to BJ pumping unit. Pump 3 bbls of water and pressure test DAILY lines to 3611 psi. Bleed off and open up bottom valve. Drop first (bottom) plug. Mix and pump 29.0 bbls of 10.0ppg SealBond spacer (using 27.70 ACTIVITY bbls of mix water and adding 290 Ibs of Ultra Seal Plus LCM material before pumping), and follow with 208.0 bbls of pre -mixed 10.5ppg cement SUMMARY slurry (346 sacks of Class G cement plus accelerator chemicals mixed with 102.52 bbls water to batch -up at 12.445 gal /sk and yield of 3.375 cu- fUsk). Spin out pin. Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 2.0 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 428.88 bbls (9102 strokes) of mud (and 430.88 bbls total displacement). Bump plug at close to calculated strokes with 625psi over - pressure (and 1215psi total pressure). Bleed off. Check floats. Cement in place. Begin 24 hour wait on cement. (Note cementing lines flushed with 3.0 bbls of water by BJ after last plug kick out). 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. Make up 9 5/8" pack - off and run in on 1 joint of HWDP. Energize seals and test pack -off to 5000psi for 10 minutes. Remove sling line. Rig down, lay down and load off the casing spider slips, casing elevators, long bails and Lafleur fill -up tool. Rig up short bails and drill pipe elevators. Move tong hanging sheave and hang rig tongs. Offload remaining Weatherford equipment. Rig down and fold up stabbing board. Reset and realign torque tube. Rig up Topdrive rail. Install bails and elevators. 0 EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2424 RW: 585 REPORT BY Craig Silva Marathon Oil Company EPOCH • Kenai Gas Field DAILY WELLSITE REPORT Ell KDU 9 REPORT FOR John Nicholson / Mitch Bums DATE Jul 25, 2008 DEPTH 5675 PRESENT OPERATION Completing rig repairs on cotta box TIME 24:00 YESTERDAY 5675 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" 5668' 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 5675 / 5362 TVD MW 9.6 VIS 60 PV 16 YP 26 FL 5.7 Gels 10/16/ CL- 30500 FC 1 SOL 6.5 SD Tr OIL 1/93 MBL 8.5 pH 8.4 Ca+ 240 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 waiting on cement. Rig up to handle drill pipe. Finish resetting and realigning torque tube, rigging up Topdrive rail and installing bails and elevators. Change out upper 9 5/8" casing rams to 2 3/8" X 5 1/2" variable pipe rams. Clean rig floor. Run in test plug. Could not set test plug. Pull plug out of hole and discover both seals are damaged. Replace seals. Run in and set repaired test plug. Rig up testing equipment. Test annular DAILY preventer to 250psi Low /2500psi High for 5 minutes. Test all remaining BOPE to 250psi Low/5000psi High for 5 minutes (upper pipe rams, check ACTIVITY valve, dart valve, upper Topdrive IBOP, CMVs 1- 10- 11 -12, floor valve, lower Topdrive IBOP, outside kill valve, CMVs 6 -8 -9, inside kill valve, CMVs SUMMARY 2 -5 -7, HCR, manual choke CMVs 3 -4, blind rams). Perform accumulator drawdown test. Note that major repairs to the cotta box commenced after the third BOP test. Rig down testing equipment. Pull test plug. Install wear bushing. Continue cotta box repairs, and perform various rig service and maintenance during repairs. Check oil levels and service lube Topdrive. Repair hose to rotary table lock. Repair rubbers under the beds of #2 shaker. Test 9 5/8" casing to 2500psi for 30 minutes after waiting on cement for 24 hours. Do a sling inventory. Inspect ladders. Inspect mud pumps. Continue cotta box repairs. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML:2950 RW: 585 REPORT BY Craig Silva S Marathon Oil Company El Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR John Nicholson / Mitch Burns DATE Jul 26, 2008 DEPTH 6298 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5675 24 HOUR FOOTAGE 623 CASING INFORMATION 9 5 /8" @ 5668' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5611 0.59 248.78 5297.76 5726 0.35 183.66 5412.76 SURVEY DATA 5914 0.43 150.37 5600.75 6104 0.32 202.41 5790.75 6293 0.27 214.66 5979.75 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM503ZX 7114328 3x13 3x14 5675 623 5.56 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 205.9 @ 5735 31.7 @ 6221 120.2 170.6 FT /HR SURFACE TORQUE 15198 @ 5949 6724 @ 6087 10171.6 9023.6 AMPS WEIGHT ON BIT 18 @ 5709 3 @ 5827 7.9 12.9 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1760 @ 6298 770 @ 5676 1447.9 1760.7 PSI DRILLING MUD REPORT DEPTH 6220 / 5907 TVD MW 9.6 VIS 58 PV 16 YP 24 FL 5.8 Gels 10/17/ CL- 31500 FC 1 SOL 6.5 SD 0.0 OIL 4/90 MBL 7.5 pH 9.0 Ca+ 160 CCI III MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 151 @ 5843 6 @ 5692 40.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 30211 @ 5843 1221 @ 5692 8133.4 CONNECTION GAS HIGH ETHANE (C -2) 12 @ 5840 0 @ 1.4 AVG PROPANE (C -3) 2 @ 6257 0 @ 0.2 CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 22 / 50 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE (No gases over 100 units from sandstones). INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone, Tuffaceous Siltstone, Sand /Sandstone. Minor Tuffaceous Sandstone, Volcanic Ash, Coal /Carbonaceous Shale. PRESENT SAND /SANDSTONE TUFFACEOUS SANDSTONE LITHOLOGY Continue cotta box repairs. Replace shifting fork and seals on the carrier #2 side. Finish working on cotta box. Test play and synchronization of drives. Troubleshoot and make adjustments to right angle drive. Prepare rig floor for picking up directional bottom hole assembly. Prepare drill DAILY pipe on the pipe rack. Pick up, make up and run in hole directional assembly (8 1/2" bit, mudmotor, NM string stabilizer, short NMDC, MWD, NM W ACTIVITY crossover , 2 NMCSDPs, steel crossover, 21 joints 5" HDP plus jars) to 791'. Surface test MWD tool. Pick up off pipe rack, drift, make up and SUMMARY run in 108 joints of 5" drill pipe to 4200'. Continue running in hole with 20 stands of 5" drill pipe from derrick to 5465'. Break circulation. Wash down from 5465' and tag float collar at 5580'. Drill out float collar and remaining shoe tract (cement, shoe at 5667', and rathole) to bottom at 5675'. Drill 20' of new hole to 5695'. Circulate bottoms up. Rig up and perform Formation Integrity Test to 14.2 EMW (9.9ppg, 5354'TVD, 1200psi). Dump 200 bbls of old Flo-Pro mud to Hanson Tank. Drill (rotating) from 5695' to 6298'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 • REPORT BY Craig Silva 1 Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR John Nicholson / Mitch Bums DATE Jul 27, 2008 DEPTH 7665 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6298 24 HOUR FOOTAGE 1367 CASING INFORMATION 9 5/8" @ 5668' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6481 0.18 277.93 6167.75 6795 0.12 114.02 6481.75 SURVEY DATA 6984 0.28 040.94 6670.75 7363 0.35 116.11 7049.74 7554 0.42 108.30 7240.74 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM503ZX 7114328 3x13 3x14 5675 1990 17.23 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 183.3 @ 6741 16.4 @ 7355 127.2 105.7 FT /HR SURFACE TORQUE 14644 @ 7194 6074 @ 6849 9413.1 11855.8 AMPS WEIGHT ON BIT 27.6 @ 6599 1.5 @ 7042 11.6 12.9 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2044 @ 7553 1368 @ 6347 1699.2 1900.7 PSI DRILLING MUD REPORT DEPTH 7671 /7358 TVD MW 10.5 VIS 58 PV 22 YP 32 FL 5.2 Gels 14/20/ CL- 28500 FC 1 SOL 13.5 SD Tr OIL 5/82 MBL 8.75 pH 9.5 Ca+ 200 CCI III MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 250 @ 6762 32 @ 7623 95.8 TRIP GAS CUTTING GAS @ @ WIPER GAS 65 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 50029 @ 6762 6552 @ 7623 19086.0 CONNECTION GAS HIGH ETHANE (C -2) 32 @ 6762 0 @ 9.5 AVG PROPANE (C -3) 8 @ 6762 0 @ 1.4 CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 45 / 120 PENTANE (C -5) @ @ HYDROCARBON POOR TO FAIR SHOWS. Note total of 22 sand zones totaling 378' in thickness with gas over 100 units. SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION From 6746' to report Nearly all sand /sandstone zones with similar characteristics; Most 250 Max, most peaks Sd /SS/Tuff SS /Conglomeratic SS: med gry- depth at 7665', 22 appearfairly tight and poor candidates for having good Perms due at or over 200, avg in dk gry, corn fnt bluish gry sec hue, dom med, zones -378' to volume of matrix clays. Ovbvious expansion during hydration, zones 160, before and mod -poor srtd, most mtrx spprtd by solb cly, and probable better Perm than appearances due to repeated high after gases ang- sbang, "good" sands dom gr spprtd w/ gas. Zones with highest gas do have better vis Por. Note that most consistently at 60 -80u. mixed calc -cly intgrn, compositional gywke, gas increases slowly to peak amounts. immature fluvial sds. ! LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Conglomeratic Sand, Coal /Carbonaceous, Volcanic Ash, Calcareous Tuff. PRESENT SAND /SANDSTONE TUFFACEOUS SANDSTONE LITHOLOGY DAILY Drill from 6298' to 6849'. Circulate bottoms up and continue to circulate hole clean. Pull out of hole from 6849' to 5652' on wiper trip to shoe. ACTIVITY (Hole sticky pulling out, requiring brief backreaming in 16 places). Service rig and Topdrive. Troubleshoot Epoch's RPM sensor on Topdrive. SUMMARY Run back in hole (with no problems) from 5652' to 6785'. Wash down from 6785' to bottom at 6849' with no fill. Start pumping around 30 bbl sweep. Record 65 units of wiper gas. Begin weighting up from 9.8ppg to 10.2ppg. Drill from 6849' to 7665'. III EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva Marathon Kenai Gas Company EPOCH II Kenai Gas Field DAILY WELLSITE REPORT Ell KDU 9 REPORT FOR John Nicholson / Mitch Bums DATE Jul 28, 2008 DEPTH 8850 PRESENT OPERATION Circulating bottoms up for statigraphic assessment by geolgist TIME 24:00 YESTERDAY 7665 24 HOUR FOOTAGE 1185 CASING INFORMATION 9 5/8" @ 5668' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7744 0.80 125.65 7430.73 7934 0.84 126.07 7620.71 SURVEY DATA 8123 0.46 122.65 7809.70 8501 0.49 177.16 8187.68 8689 0.31 216.27 8375.68 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM503ZX 7114328 3x13 3x14 5675 3175 27.91 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 191.9 @ 7990 21.5 @ 8304 129.5 46.1 FT /HR SURFACE TORQUE 21016 @ 8266 7337 @ 7728 11317.2 10695.1 AMPS WEIGHT ON BIT 25.4 @ 8516 1.0 @ 8241 11.9 10.1 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2294 @ 8266 1703 @ 8189 2006.4 2042.4 PSI DRILLING MUD REPORT DEPTH 8800 / 8487 TVD MW 11.5 VIS 61 PV 26 YP 37 FL 5.8 Gels 14/21/24 CL- 31500 FC 1 SOL 17.0 SD Tr OIL 5/79 MBL 11.0 pH 9.6 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 548 @ 8312 24 @ 8682 125.9 TRIP GAS CUTTING GAS @ @ WIPER GAS 1585 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 110199 @ 8312 4862 @ 8682 24962.4 CONNECTION GAS HIGH 292 ETHANE (C -2) 99 @ 8729 0 @ 16.8 AVG 164 PROPANE (C -3) 43 @ 8730 0 @ 3.9 CURRENT 29 BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 24 / 90 PENTANE (C -5) @ @ i HYDROCARBON POOR TO GOOD SHOWS. Note total of 19 sand zones totaling 363' in thickness with gas over 100 units. SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION From 7665' to report Sand /SS and tuffaceous SS zones with similar characteristics; Most 548 Max, most peaks Sd /SS/Tuff SS: med gry, com fnt yelsh gry + depth at 8850', 19 generally look tight and appear poor candidates for good Perms due at or over 300, avg in olio gry sec hue, dom fine, mod -mod w srtd, zones -363' to volume of matrix clays. Ovbvious expansion during hydration, zones 260, before and most mtrx spprtd by solb cly, ang- sbang, and probable better Perm than appearances due to repeated very after gases "good" sands dom gr spprtd w/ mixed calc- high gas. Highest gas zones usually have better vis Por. Note consistently at 70 -80u. cly -ash intgrn, lith arenite - sublithic aren, significant connection gas in this interval. most consol ss weak- fiable-fragile. LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Conglomeratic Sand, Coal /Carbonaceous, Volcanic Ash, Calcareous Tuff. PRESENT SAND /SANDSTONE TUFFACEOUS SANDSTONE LITHOLOGY Drill from 7665' to 7924'. Circulate bottoms up and continue to circulate hole clean. Check for flow. Pump dry job. Pull out of hole from 7924' to DAILY 6662' on wiper trip to shoe. Hole very sticky pulling out, requiring working and backreaming in 31 spots. Note near continuous backream from ACTIVITY 6959' to 6800'. Run back in hole (slick with no problems) from 6662' to 7861'. Wash down from 7861' to bottom at 7924' with no fill. Start pumping SUMMARY around 30 bbl sweep. Record 1585 units of wiper gas. Begin weighting up from 10.5ppg to 11.5ppg. Drill from 7924' to 8800'. Circulate bottoms up for first stratigraphic assessment by Marathon geologist. Continue circulating while waiting for evaluation. Drill from 8800' to 8850'. Begin circulating bottoms up for second stratigraphic assessment by geologist. ill EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva • Marathon Oil Company EPOCH • Kenai Gas Field DAILY WELLSITE REPORT HI KDU 9 REPORT FOR Rowland Lawson / Mitch Burns DATE Jul 29, 2008 DEPTH 8955 PRESENT OPERATION Wiper trip after reaching pending intermediate casing point TIME 24:00 YESTERDAY 8850 24 HOUR FOOTAGE 105 CASING INFORMATION 9 5/8" @ 5668' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 8879 0.22 113.56 8565.68 8955 (Projection) 0.39 122.03 8641.67 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM503ZX 7114328 3x13 3x14 5675 3280 30.31 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 89.7 @ 8852 18.2 @ 8946 47.4 35.2 FT /HR SURFACE TORQUE 11330 @ 8945 8337 @ 8952 9714.1 9249.9 AMPS WEIGHT ON BIT 12.5 @ 8924 1.7 @ 8946 5.9 3.9 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2324 @ 8938 1788 @ 8952 2109.9 2068.5 PSI DRILLING MUD REPORT DEPTH 8955 / 8642 TVD MW 12.1 VIS 69 PV 31 YP 35 FL 6.2 Gels 16/23/ CL- 29500 FC 2 SOL 21 SD Tr OIL 4/75 MBL 12.5 pH 9.6 Ca+ 120 CCI MWD SUMMARY INTERVAL TO III TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 52 @ 8877 8 © 8925 26.5 TRIP GAS CUTTING GAS @ @ WIPER GAS 2064 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 10449 @ 8877 1735 @ 8925 5296.4 CONNECTION GAS HIGH ETHANE (C -2) 7 @ 8877 0 @ 2.9 AVG PROPANE (C -3) 1 @ 8852 0 @ 0.5 CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone. Minor Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash, Very Carbonaceous Tuffaceous Claystone. Very Minor Carbonaceous Shale /Coal, Conglomeratic Sand /Conglomerate. PRESENT SAND /SANDSTONE CONGLOMERATIC SAND /CONGLOMERATE TUFFACEOUS CLAYSTONE LITHOLOGY Finish circulating bottoms up at 8850' for second stratigraphic assessment by Marathon geologist. Pull out of hole from 8850' to 7857' on wiper trip. (Only 2 very minor sticky spots on way out). Run back in hole from 7857' to 8807'. Wash down from 8807' to 8850' with no fill. Drill from 8850' to 8870'. Circulate out high gas at 8870'. Record 2064 units of wiper gas. Begin weighting up from 11.5ppg to 12.0ppg. Circulate gas down to 30 units and resume drilling. Drill from 8870' to 8900'. Circulate bottoms up for third stratigraphic assessment by geologist. Finish weighting up to 12.0ppg. DAILY Drill from 8900' to 8925'. Circulate bottoms up for fourth stratigraphic assessment by geologist. Drill from 8925' to 8945'. Circulate bottoms up for ACTIVITY fifth stratigraphic assessment by geologist. Drill from 8945' to 8955'. Circulate bottoms up for sixth stratigraphic assessment by geologist. Continue SUMMARY circulating (another 2.8 bottoms up) while determination on whether to drill additional footage is made. (Decision reached to wiper trip, pull out of hole and run a gamma log on wireline for confirmation). Pull out of hole from 8955' to 5560' on wiper trip. Pull slick nearly all the way from 8955' to 7978' (with only minor sticky spots at 8590' and 8331'). Hole becomes very tight at 7978'. Run stand back in to 8019' and begin significant backreaming, reaming, washing and working pipe to 7070'. Record maximum 62 units of gas while working pipe. (Work through 32 tight zones totaling estimated 380' of tight or "sticky" hole). Pull out of hole from 7070' to 5685' (just outside of 9 5/8" shoe at 5668'). Circulate 1.5 bottoms up. Pull up into casing to 5560'. Service rig and Topdrive. Grease crown. Start running back in hole from 5560' (to 5685'). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 Consulting: 1300 • REPORT BY Craig Silva Marathon a Company EPOCH ill Kenai enai G Gas Field DAILY WELLSITE REPORT El KDU 9 REPORT FOR Rowland Lawson DATE Jul 30, 2008 DEPTH 8955 PRESENT OPERATION Rigging up to test 7" pipe rams TIME 24:00 YESTERDAY 8955 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5668' 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 3 8.5 HCC HCM503X 7114328 3x13 3x14 5675 8955 3280 30.31 1- 1- CT- S- X -I -WT -LOG Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8955 / 8642 TVD MW 12.3 VIS 74 PV 31 YP 42 FL 6.2 Gels 16/24 CL- 29500 FC 2 SOL 22.5 SD 0.1 OIL 4/74 MBL 12.5 pH 9.5 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 358 @ WG at 8955 2 @ pumping dry job 56 circ out after wiper trip TRIP GAS CUTTING GAS @ @ WIPER GAS 358 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running back in hole from 5685' to 8902'. Wash down from 8902', start taking marginal amount of weight at 8933', and ream rest of the way down to 8955' (with no fill). Circulate bottoms up. Record 358 units of wiper gas. Continue to circulate, clean and condition hole while building mud weight up from 12.1 ppg to 12.2ppg. Record last gas at 5 units before pump shut down. Check for flow. Prep to pull 5" drill pipe out of hole (SLM). Pull out of hole from 8955' to 8933' and lay down single. Pull out of hole from 8933' to 8618'. Pump dry job. Pull out of hole from 8618' to 6473'. Drop drift. Continue pulling out of hole from 6473' to 791'. Pull and stand back 21 joints 5" HWDP plus crossover and jars (11 stands) to 132'. DAILY Break, lay down and load off directional tools (steel crossover, 2 NMCSDP flex joints, NM crossover, MWD, NM pony collar, NM stabilizer, bit). ACTIVITY Grade bit. Clear and clean rig floor. Rig up Expro Wireline Service equipment and hold brief pre -job meeting on wireline operations. Run in hole SUMMARY with gamma correlation log. Tag bottom and pull out of hole to shoe logging up with GR tool. Review depth integrity of logging run and decide to do a second confirmation pass. Pull out of hole with GR tool. Remove centralizer springs. Run back in hole with gamma tool. Adjust downward correlation point at 9 5/8" casing shoe depth of 5667'. Run in hole with GR tool and tag bottom at 8948' (logger's depth). Pick up and land on bottom 3 times to insure no ledges or fill. Log up with gamma tool from 8948' to 5502'. Pull rest of the way out of hole with wireline gamma tool assembly.. Lay down logging tools. Rig down Expro Wireline Service equipment. Wait on log evaluation by Marathon geologist. (Go ahead given to run 7" liner at current depth). Pull wear bushing. Change out pipe rams to 7 ". Rig up test equipment. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 Consulting: 1300 REPORT BY Craig Silva • Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR Rowland Lawson / Dan Byrd DATE Jul 31, 2008 DEPTH 8955 PRESENT OPERATION Circulating prior to cementing 7" liner TIME 24:00 YESTERDAY 8955 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5668' 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 8955 / 8642 TVD MW 12.2 VIS 26 PV 44 YP 44 FL 6.0 Gels 16/23/ CL- 29500 FC 2 SOL 23 SD Tr OIL 4/73 MBL 11.5 pH 9.2 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 185 @ TG at 8955 2 @ at first flow 28 before cementing TRIP GAS 185 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 20 / 95 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Test 7" rams to 250psi Lo / 2500psi Hi for 10 minutes. Set wear bushing. Pick up, make up and lay down cementing head. Rig up cementing line and circulating swage. Move breakout tongs to driller's side and install correct tong head. Remove elevators and short bails. Install long bails and pick -up sling -line. Install casing elevators. Move torque tube back in derrick for clearance. Rig up and function stabbing board. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Make up EZ -tum 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 7" casing. Inspect rig -up. Run in hole with 7" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Install stop collars and centralizers as directed. Pick up and make up shoe track (shoe joint, 2 spacer joints, float collar) DAILY and run in hole to 169'. Circulate casing volume through shoe track and check float equipment. Continue running 7" casing in hole. Attach ACTIVITY centralizers as per tally and fill every joint on way in. Run casing from 163' to 460'. Work on tong dies. Change out tongs. Continue running casing SUMMARY from 163' to 3444'. Rig down stabbing board. Load off centralizers and lock rings off rig floor. Remove casing tongs. Re -rig tugger lines for picking up drill pipe. Remove EZ -turn valve. Rig down casing spider slips. Rig down Weatherford casing tongs and remove tall snub post. Replace rotary bushings. Move breakout tongs to driller's off -side and install correct tong head. Remove pick -up sling line. Replace long bails with short bails. Remove casing elevators and install drill pipe elevators. Adjust torque tube. Pick up and make up liner hanger assembly (7" flexlock hanger liner, RS PO nipple, ZXP liner top packer, 5" drill pipe lift nipple) Install circulating swage. Break circulation, fill pipe and circulate bottoms up. Record 7 units maximum gas. Continue running 7" liner in hole with 21joints 5" HWDP to 4113', laying down jars on way in. Continue running 7" liner in hole with 5" drill pipe to 5630' (near shoe). Install circulating swage. Fill pipe. Continue running 7" liner in hole with 5" drill pipe to 8928'. Rig up cementing head. Break circulation and wash down from 8928' to bottom at 8955'. Circulate bottoms up. Record 185 units of trip gas. Continue circulating and conditioning prior to cement job. • EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva Marathon Oil Company ID Kenai Gas Field DAILY WELLSITE REPORT EPOCF[ KDU 9 REPORT FOR Rowland Lawson / Dan Byrd DATE Aug 01, 2008 DEPTH 8955 PRESENT OPERATION Testing casing while running in with 4" drill pipe TIME 24:00 YESTERDAY 8955 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 8955' 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 4RR 6.125 HCC STX1 5124998 Open 8955 0 0 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 8955 / 8641 TVD MW 12.2 VIS 82 PV 26 YP 44 FL 6.0 Gels 16/23 CL- 29500 FC 2 SOL 23.0 SD Tr OIL 4/73 MBL 11.5 pH 9.2 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS III GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 175 @ just after TG peak 1 @ circ inside casing N/A TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue circulating and conditioning prior to cementing 7" liner. Shut down pumps. Rig up cementing lines. Note that BJ cementing head has plug pre - installed. Continue to circulate and condition mud (1 full casing volume). Hold pre -job meeting with BJ on procedures and safety for cement job. Transfer 120 bbls mud from pits to Hanson Tank. Switch to BJ pumping unit. Pump 2.0 bbls of water ahead to fill cementing lines and test to 4490psi. Bleed off and open safety valve. Mix and pump 28.0 bbls of 12.5ppg MCS -4D spacer. Experience trouble with water line. Reprime water line. Batch up and pump 82.00 bbls of 12.5ppg cement lead slurry (with 184 sacks of Class G cement to 61.22 bbls mix water plus chemical additives for 2.417 cu ft/sack yield) and then pump 38.00 bbls of 15.8ppg cement tail slurry (with 165 sacks Class G cement to 19.60 bbls mix water plus chemical additives for 1.117 cu ft/sack yield). Finish pumping cement. Drop plug. Pump 4.80 bbls water to kick out the plug. Displace cement with 220.0 bbls of mud. Total displacement is 224.1 bbls. Pump at slower rate after 205 bbls away. Bump plug with 525psi over (and 1492psi total) displacement pressure. Bleed off. Check floats. Cement in place. Swap lines to back to rig to reverse out. (BJ starts wash down of equipment). DAILY Pressure drill pipe to 3200psi and set liner hanger. Work pipe to release hanger, but hanger will not release. Mechanically release hanger after 1/2 ACTIVITY wrap of left hand turn. Pick up on string 5' to expose dog sub in hanger - packer combo assembly, and then slack off 75K to shear and set liner SUMMARY packer. Top of packer at 5479'. Very slowly break circulation. Pick up 30' while slowly circulating (at 2 bpm) until running tool (lift nipple) is completely free, and then increase circulation rate (to 10 bpm). Circulate out and observe 25 bbls of cement returns and surface. Record 29 units maximum gas as returns reach surface. Circulate until returns are clean. Stop circulating and then flush down and blow down cementing head and lines back to pits. Lay down cementing head and secure out of the way. Pull out of hole with 5" drill pipe from 5479' to 3469'. Hold pre -job meeting on safety and procedures for pulling and laying down drill pipe from the mouse hole. Prep and set up rig floor for laying down drill pipe. Pull out of hole from 3469' laying down 5" drill pipe. Begin offloading 280 bbls of 12.3 mud in pits. Break and lay down running tool. Break, rig down and load off cementing head. Break, lay down and load off directional tools (steel crossover, 2 NMCSDP flex joints, NM crossover, MWD, NM pony collar, NM stabilizer, bit). Secure handling tools. Begin building new 9.0ppg Flo-Pro mud. Change out 7" casing rams to stacked 5" and 4" rams. Pick 5" and 4" test joints in succession and test both size rams to 250psi Lo / 5000psi Hi for 5 minutes. Install wear bushing. Pick up, make up and run in hole 6 1/8" bit, bit sub and crossover. Pick up, make up, drift and run in hole 4" HWDP to 673' and 4" drill pipe to 4515'. Fill pipe. Rig up and test • casing to 3000psi for 30 minutes. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva Marathon Oil Company EPOCH • Kenai G Gas Field DAILY WELLSITE REPORT PI KDU 9 REPORT FOR Rowland Lawson / Dan Byrd DATE Aug 02, 2008 DEPTH 8975 PRESENT OPERATION Circulating out gas before attempting Formation Integrity test TIME 24:00 YESTERDAY 8955 24 HOUR FOOTAGE 20 CASING INFORMATION 7" @ 8955' 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 4RR 6.125 HCC STX1 5124998 Open 8955 20 0.53 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 125.9 @ 8960 4.2 @ 8956 64.7 63.6 FT /HR SURFACE TORQUE 8227 @ 8956 6476 @ 8962 7621.4 8060.1 AMPS WEIGHT ON BIT 10 @ 8972 2 @ 8956 8.9 10.5 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1122 @ 8958.00000 910 @ 8973 996.0 912.2 PSI DRILLING MUD REPORT DEPTH 8975 / 8662 TVD MW 9.2 VIS 45 PV 12 YP 19 FL 4.2 Gels 8/12/ CL- 28000 FC 1 SOL 4.5 SD Tr OIL 2/94 MBL 3.5 pH 8.6 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS 41111 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 198 @ 8962 90 @ 8956 144.4 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 39600 @ 8962 18046 @ 8956 28792.5 CONNECTION GAS HIGH ETHANE (C -2) 46 @ 8961 23 @ 8956 35.1 AVG PROPANE (C -3) 20 @ 8961 10 @ 8956 14.8 CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG 90 / 150 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Coal. Minor Conglomeratic Sand /Conglomerate, Sand, Tuffaceous Claystone. PRESENT LITHOLOGY COAL Finish testing casing to 3000psi for 30 minutes. Run in hole from 4515' and tag float collar at 8826'. Change out shaker screens. Circulate and condition well. Begin displacing mud in hole. Build and begin pumping around sweep. Begin building mud volume of 9.2ppg mud. Drill out landing DAILY collar from 8826' to 8828'. Record 406 units of gas inside casing while drilling out float. Shut in well. Monitor well. Circulate through choke ACTIVITY (60spm, 118gpm, 350 back pressure). Test casing to 3000psi for 15 minutes. Circulate bottoms up. Record 98 units of gas. Drill out remaining SUMMARY shoe tract (float equipment, cement, shoe) from 8828' to 8955'. Drill 20' of new hole from 8955' to 8975'. Circulate bottoms up. Record 198 units maximum of formation gas. (Coal is the very dominant lithology). Circulate and condition well down to 70 units. Condition circulating while Epoch performs gas equipment calibration. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva • • Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR Rowland Lawson / Dan Byrd DATE Aug 03, 2008 DEPTH 8975 PRESENT OPERATION Pulling out of hole with drill out assembly TIME 24:00 YESTERDAY 8975 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 8955' 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 4RR 6.125 HCC STX1 5124998 Open 8955 20 0.53 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 8975 / 8661 TVD MW 11.0 VIS 51 PV 16 YP 20 FL 5.0 Gels 7/10/12 CL- 32000 FC 1 SOL 12.3 SD Tr OIL 2/86 MBL pH 9.9 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS III GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 898 @ 8975 after BOP drill 0 © 8975 after 11.0ppg circ N/A 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 / 2 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Shut down pumps. Pull up to 8930' and monitor well for 30 minutes while Epoch completes gas equipment calibration. Break circulation. Circulate bottoms up while working pipe. Record maximum 775 units of shut down gas. Continue circulating and build mud weight up from 9.2ppg to 9.4ppg. Shut down pumps and monitor well for 28 minutes. Break circulation. Circulate bottoms up while working pipe. Record maximum 743 units of shut down gas. Continue circulating and build mud weight up from 9.4ppg to 9.8ppg. Shut down pumps and monitor well for 36 minutes. Break circulation. Circulate bottoms up while working pipe. Record maximum 898 units of shut down gas. Continue circulating and build mud weight up from 9.8ppg to 10.2ppg. Shut down pumps and monitor well for 42 minutes. Break circulation. Circulate bottoms up while working pipe. Record DAILY maximum 626 units of shut down gas. Circulate gas down to 5 units. Shut in well and perform BOP drill. Monitor well with pumps off for 60 minutes. ACTIVITY Break circulation. Circulate bottoms up while working pipe. Record maximum 865 units of shut down gas. Continue circulating and build mud SUMMARY weight up from 10.2ppg to 11.0ppg. Shut down pumps and monitor well for 38 minutes. Break circulation. Circulate bottoms up while working pipe. Record maximum 3 units of shut down gas. (Well apparently killed at 11.0ppg). Check for flow. Pull out of hole 5 stands of 5" drill pipe to 8617' (while mixing dry job). Pump dry job. Pull out of hole with 5" drill pipe from 8617' to 5397'. Check for flow. Observe apparent 4 bbl shortage on volume replacement. Beginning running back in hole as a precaution while replacement volumes are more closely evaluated. Run back in hole 3 stands to 5584' before volume difference is accounted for by volume surge while dry job is falling down. Static monitoring for 16 minutes indicates that well is stable and not "creeping in ". Pull out of hole with 5" drill pipe from 5584' to 4515'. Change out pipe handling tools from 5" to 4 ". Continue pulling out of hole with 4" drill pipe from 4515' to 4389'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Crraig Silva • Marathon Oil Company EPOCH • Kenai Gas Field DAILY WELLSITE REPORT El KDU 9 REPORT FOR Rowland Lawson / Dan Byrd DATE Aug 04, 2008 DEPTH 9428 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 8975 24 HOUR FOOTAGE 453 CASING INFORMATION 7" @ 8955' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9005 0.69 119.25 8691.67 SURVEY DATA 9193 0.37 131.37 8879.66 9383 0.41 165.46 9069.66 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 4RR 6.125 HCC STX1 5124998 Open 8955 8975 20 0.53 1- 1- WT- A- E -1 -WT -BHA Change BHA 5 6.125 HCC HCM505ZX 7010032 5x12 8975 453 7.81 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 108.0 @ 9245 7.4 @ 9307 64.1 44.5 FT /HR SURFACE TORQUE 16060 @ 9401 7293 @ 9262 11621.4 12877.7 AMPS WEIGHT ON BIT 18 @ 9015 2.7 @ 9068 7.5 5.9 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2265 @ 9401 912 @ 8975 1664.0 1716.7 PSI DRILLING MUD REPORT DEPTH 9238 / 8925 TVD MW 10.9 VIS 54 PV 15 YP 25 FL 4.8 Gels 8/11/12 CL- 32000 FC 1 SOL 11.9 SD Tr OIL 2/86 MBL pH 10.1 Ca+ 150 CCI MWD SUMMARY III INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 142 @ 8975 6 @ 9307 37.1 TRIP GAS 37 CUTTING GAS @ @ WIPER GAS 16 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 28291 @ 8975 1122 @ 9307 6976.2 CONNECTION GAS HIGH ETHANE (C -2) 32 @ 8975 0 @ 1.0 AVG PROPANE (C -3) 16 @ 8975 0 @ 0.1 CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 12 / 65 PENTANE (C -5) @ @ HYDROCARBON One poor to fair show (gas over 100 units) SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION 8993 -9050 Massive sand and tuffaceous sandstone; appears poor 125u maximum, 116 avg SD/Tuffaceous SS = light gray, clean when porosity overall due to large volume of intergrain ash, but thru zone, 10 units disaggregated, ashy when tuffaceous, fine to med, gas suggests better permeability before and after mod srtd, sublithic arenite, poor -mod vis Por. LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Conglomeratic Sand /Conglomerate, Volcanic Ash, Coal /Carbonaceous Shale. PRESENT SAND /SANDSTONE CONGLOMERATIC SAND /CONGLOMERATE LITHOLOGY Continue pulling out of hole with 4" drill pipe from 4389' to 673'. Pull and stand back 4" HWDP. Break and lay down bit and bit sub. Grade bit. Pick up, make up and run in hole bottom hole assembly (6 1/8" bit, motor, NM pony collar, NM string stabilizer, MWD, 2 NM flex collars, crossover sub, DAILY 4 HWDP, jars, 17 HWDP, 61 stands 4" drill pipe, crossover) to 4636'. Surface test MWD tool at 793' on way in. Continue running in hole with 5" ACTIVITY drill pipe from 4636' to 8975'. Pick up and circulate bottoms up after tagging bottom. Record 37 units of trip gas. Rig up and perform Formation SUMMARY Integrity Test to 13.0 EMW. Drill from 8975' to 9239'. Circulate bottoms up. Check for flow. Pull out of hole on wiper trip to 8920' (inside shoe). Check for flow. Cut and slip 246' of drilling line. Set crown -o- matic. Service rig and Topdrive. Adjust brakes. Run back in hole from 8920' to 9176'. Break circulation. Wash down from 9176' to 9239'. Circulate bottoms up and record 16 units of wiper gas. Drill from 9239' to 9428'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 • REPORT BY Craig Silva Marathon Gas Company EPOCH • - Kenai Gas Field DAILY WELLSITE REPORT El KDU 9 REPORT FOR Rowland Lawson / Dan Byrd DATE Aug 05, 2008 DEPTH 9850 PRESENT OPERATION Pulling out of hole after wiper trip at TD TIME 24:00 YESTERDAY 9428 24 HOUR FOOTAGE 422 CASING INFORMATION 7" @ 8955' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9572 0.10 211.47 9258.66 SURVEY DATA 9761 0.31 116.11 9447.66 9850 (Projection) 0.31 116.11 9536.65 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5 6.125 HCC HCM505ZX 7010032 5x12 8975 9850 875 15.98 3- 3- WT- N- X- 1 -NO -TD TD of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 78.8 @ 9430 14.0 @ 9718 56.2 41.0 FT /HR SURFACE TORQUE 15950 @ 9828 7388 @ 9546 11886.9 13052.9 AMPS WEIGHT ON BIT 22 @ 9555 0 @ 9455 6.8 5.3 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2258 © 9828 1306 @ 9555 1715.4 1734.6 PSI DRILLING MUD REPORT DEPTH 9850 / 9537 TVD MW 10.6 VIS 53 PV 15 YP 21 FL 4.6 Gels 8/11/12 CL- 32000 FC 1 SOL 11.0 SD Tr OIL 2/87 MBL 1.0 pH 9.8 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 149 @ 9501 4 @ 9822 36.5 TRIP GAS CUTTING GAS @ @ WIPER GAS 21 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 29917 @ 9501 818 @ 9822 7301.6 CONNECTION GAS HIGH ETHANE (C -2) 15 @ 9498 0 @ 2.1 AVG PROPANE (C -3) 1 @ 9498 0 @ 0.1 CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON One poor to fair show (gas over 100 units) SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION 9490 -9508 Uppermost zone of massive sand and tuffaceous sandstone; 149u maximum, 135 avg SD/Tuffaceous SS = light gray, clean where appears poor porosity overall due to large volume of intergrain thru interval, 18 units disaggregated, ashy where tuffaceous, fine to ash, but gas in upper zone suggests effective permeability baseline before and after med, mod well srtd in gas intvl, sublithic arenite, mod vis Por. LITHOLOGY PRESENT LITHOLOGY Drill from 9428' to 9790'. Circulate bottoms up for initial stratigraphic assessment by geologist. Drill from 9790' to 9820'. Circulate bottoms up for DAILY further stratigraphic assessment by geologist. Drill from 9820' to 9850'. Circulate bottoms up. Circulate hole clean. Check for flow. Pull out of ACTIVITY hole from 9850' to 8920' (inside 7" shoe). Service rig and Topdrive. Run back in hole from 8920' to 9806'. Wash down from 9806' to 9850'. SUMMARY Circulate bottoms up. Pump around 50 bbl Hi -Vis sweep. Circulate hole clean. Check for flow. Pump dry job. Drop drift. Pull out of hole with 5" drill pipe and 4" drill pipe from 9850' to 2680'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva 410 Marathon Gas Company EPOCH Kenai Gas Field DAILY WELLSITE REPORT Ell KDU 9 REPORT FOR John Nicholson / Dan Byrd DATE Aug 06, 2008 DEPTH 9850 PRESENT OPERATION Pulling out of hole for wireline logging run TIME 24:00 YESTERDAY 9850 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 8955 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 10.6 VIS 53 PV 15 YP 21 FL 4.6 Gels 8/11/12 CL- 32000 FC 1 SOL 11.0 SD Tr OIL 2/87 MBL 1 pH 9.8 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 1300 @ TG at 9850 2 @ pump shut down 282 returns from open hole TRIP GAS 1300 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 DAILY Pull out of hole from 2680' (SLM) to 793' (with no corrections). Pull out of hole and lay down bottom hole assembly. Clean and clear rig floor. W ACTIVITY Run wireline quad combo and log downhole. Pull wireline out of hole. Pick up bit and bit sub. Run in hole with 4" HDP, jars, and 5" drill pipe SUMMARY to bottom at 9850'. Circluate for 15 minutes. Pull out of hole to shoe at 9790'. Circulate hole clean. Record 1300 units of trip gas. Pull out of hole. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 585 Consulting: 1300 REPORT BY Craig Silva 0 • Marathon Gas il Company EPOCIEI II Kenai Gas Field DAILY WELLSITE REPORT KDU 9 REPORT FOR John Nicholson / Dan Byrd DATE Aug 07, 2008 DEPTH 9850 PRESENT OPERATION Running wireline logs TIME 24:00 YESTERDAY 9850 24 HOUR FOOTAGE 0 I CASING INFORMATION 7" @ 8955' 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 9850 / 9537 TVD MW 10.6 VIS 62 PV 16 YP 23 FL 4.6 Gels 8/11/12 CL- 32000 FC 1 SOL 11.5 SD Tr OIL 2/87 MBL 1 pH 9.5 Ca+ 160 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 Pull out of hole with clean out assembly from 5969'. Lay down clean out tools. Clear and clean rig floor. Lay down handling tools. Hold pre job DAILY meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up ACTIVITY Weatherford's wireline running equipment. Pick up, make up and run in hole with MFT logging assembly. Log up from 9657' to 9465'. Pull out of SUMMARY hole with logging assembly and clean logging tools. Install safety valve. Run in hole with MFT logging assembly and log up from 9508' to 9195'. Pull out of hole and clean logging tools. Run in hole with MFT logging assembly and log up from 9195' to 9138'. Pull out of hole and clean logging tools. Run in hole with MFT logging assembly and log up from 9642' (to 9146'). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 585 Consulting: 1300 REPORT BY Craig Silva • Marathon Gas Company EPOCH III Kenai Gas Field DAILY WELLSITE REPORT PI KDU 9 REPORT FOR John Nicholson / Dan Byrd DATE Aug 08, 2008 DEPTH 9850 PRESENT OPERATION Preparing to test BOPE TIME 24:00 YESTERDAY 9850 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 8955' 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 4RR2 6.125 HCC STX1 5124998 Open 9850 9850 0 N/A NG Clean out run only 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 8950 / 9537 TVD MW 10.7 VIS 61 PV 16 YP 25 FL 4.8 Gels 8/11/12 CL- 31000 FC 1 SOL 11.8 SD Tr OIL 2/86 MBL 1 pH 9.8 Ca+ 150 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1395 @ TG at 9850 15 © at pump shut down 640 during trip returns TRIP GAS 1395 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 Log up with MFT assembly, taking pressure points from 9146' to 8997'. Change oil in generator #1 while logging. Run back down with MFT assembly and re- attempt pressure points from 9195' to 9150'. Testing tool plugged off. Pull out of hole with MFT assembly. Break down and lay down logging tools. Rig down Weatherford Wireline Services sheaves, safety valve, and surface running equipment. Clear and clean rig floor. DAILY Service rig. Pick up and make up bit, bit sub, and crossover to first stand of 4" HWDP. Run in hole with 4" HWDP, jars, 4" drill pipe and 5" drill pipe ACTIVITY to 8934' (just inside shoe). Break circulation. Circulate 1665 strokes (to push migrating gas away from shoe). Run in hole from 8934' to bottom at SUMMARY 9850'. Circulate 2441 strokes to move gas and cuttings returns uphole. Pull out of hole from 9850' to 8934'. Continue circulating out. Record 1395 units of trip gas. Continue to circulate, clean and condition hole (for 18525 total strokes). Circulate gas down to 15 units. Check for flow. Pump dry job. Pull 5" drill pipe and 4" drill pipe out of hole from 8934' to top of 4" HWDP at 676'. Pull and stand back HWDP and jars. Lay down crossover, bit sub and bit. Pull wear ring. Prepare to test BOPE. Set test plug. Rig up testing equipment. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 585 Consulting: 1300 REPORT BY Craig Silva 110 Marathon Oil Company Kenai EPOCH Kenai Gas Field DAILY WELLSITE REPORT El KDU 9 REPORT FOR John Nicholson / Dan Byrd DATE Aug 09, 2008 DEPTH 9850 PRESENT OPERATION Running 4 1/2" liner in hole on 5" drill pipe TIME 24:00 YESTERDAY 9850 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 8955' 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 9850 / 9537 TVD MW 10.7 VIS 60 PV 16 YP 23 FL 4.8 Gels 8/12/12 CL- 32000 FC 1 SOL 11.7 SD Tr OIL 2/86 MBL 1.0 pH 9.7 Ca+ 150 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 6 @ (in casing at 1154) 0 @ (in casing) N/A 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 Test all gas alarms and PVT alarms. Test annular preventer to 250psi Low / 2500psi High for 10 minutes. Test BOPE to 250psi Low / 5000psi High for 10 minutes (upper pipe rams, check valve, 5" dart valve, upper (topdrive) kelly cock, CMVs 1- 10- 11 -12; 5" floor valve, lower (topdrive) kelly cock, outside kill valve, CMVs 6 -8 -9; inside kill valve, CMVs 2 -5 -7; HCR, manual choke, lower pipe rams). Function accumulator and perform drawdown test. Continue testing BOPE to 250psi Low / 5000psi High for 10 minutes (blind rams, CMVs 3 -4; 4" floor valve, 4 "dart valve). Rig down testing equipment. Pull test plug. Set wear bushing. Prep and rig up to run 4 1/2" liner. Remove elevators. Change out from short bails to long bails. Install casing elevators. Rig up sling line. Rig up cementing line and circulating swage. Move breakout tongs to driller's side and install correct tong head. Rig up Weatherford casing tongs and tall snub post. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Wait for correct bow spring centralizers to arrive on location. Pick up centralizers and lock rings and stage on rig floor after arrival DAILY on location. Tie one tugger line back in derrick for picking up pipe, and the second tugger line back for hanging casing tongs. Inspect rig -up. Hold ACTIVITY pre-job meeting with Weatherford on procedures and safety for running production liner. Run in hole with 4 1/2" liner as per Marathon program. SUMMARY Clean and Bakerlok casing threads on successive shoe track joints during make up. Install stop collars and centralizers as directed. Pick up, make up and run in shoe track (float shoe, liner joint, float collar, liner joint, landing collar, liner joint) to 128'. Circulate casing volume through shoe track and check float equipment. Continue running 4 1/2" liner in hole. Attach centralizers as per tally and fill on way in. Run casing from 128' to 1154'. Load off unused centralizers and lock rings off rig floor. Remove casing tongs. Re -rig tugger lines for picking up drill pipe. Remove EZ -turn valve. Rig down Weatherford casing tongs and remove tall snub post. Move breakout tongs to driller's off -side and install correct tong head. Remove pick- up sling line. Replace long bails with short bails. Remove casing elevators and install drill pipe elevators. Pick up and make up liner hanger assembly (crossover, liner hanger, ZXP liner top packer, polished seal bore). Install circulating swage. Break circulation, fill pipe and circulate out liner volume (at 105spm, 130psi, 200gpm). Record 6 units maximum gas. Continue running 4 1/2" liner in hole with 20joints of 4" HWDP to 1772' (keeping out 1 HWDP joint and jars on way in). Continue running 4 1/2" liner in hole with 4" drill pipe to 5613'. Make up crossover. Continue running 4 1/2" liner in hole with 5" drill pipe from 5614' to 7257'. • EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 585 REPORT BY Craig Silva Marathon Oil Company EPOCH • Kenai Gas Field DAILY WELLSITE REPORT El KDU 9 REPORT FOR John Nicholson DATE Aug 10, 2008 DEPTH 9850 PRESENT OPERATION Running in hole with polish mill assembly TIME 24:00 YESTERDAY 9850 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 9845' 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 9850 / 9537 TVD MW 8.6 VIS PV YP FL Gels CL- 30000 FC KCL Brine SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 685 @ TG at 9848 2 @ cleaning hole inside casing N/A TRIP GAS 685 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running 4 1/2" liner in hole with 5" drill pipe from 7257' to 8957' (just outside 7" shoe). Circulate 800 strokes (at 71 spm, 550psi, 140gpm). Continue running in hole from 8957' to 9780'. Wash down from 9780' to 9843'. Make up cementing head and 2" line. Circulate and reciprocate pipe. Circulate bottoms up and record 685 units of trip gas. Continue to circulate and condition hole. Stop circulating and rig up BJ wash down line to cementing head. Continue circulating. Hold pre -job meeting with BJ and all hands on procedures and safety for cementing 4 1/2" liner. Stop circulating. Gas down to 12 units. Switch from rig pumps to BJ pumping unit. Pump 2 bbls of water into cementing lines and pressure test to 4000psi. Batch mix and pump 40 bbls of Sealbond sweep at 11.0ppg (using 35.4 of mix water) and follow with 28.92 bbls of 13.5ppg cement slurry. (Batched from formula blend of 89 sacks Class G cement, accelerator chemicals and 19.53 bbls of mix water (9.221 gal /sack) to yield 1.825 DAILY cuft/sack). Close cementing head after slurry is pumped, open wash up tee to slop tank and pump 5 bbls of water to wash lines and pump. Open ACTIVITY head back up. Drop plug and displace with 20 bbls of brine followed by 116 bbls of mud. Slow down pump rate at 117 bbls of displacement to SUMMARY observe liner plug pickup at 119 bbls. Slow pump rate down again at 134 bbls and bump plug at 500psi over displacement pressure at predicted strokes. Bleed off and check floats. Floats holding. Cement in place. Communicate with Baker and pressure up on drill pipe to 2400psi and set liner hanger with 40K down. Increase pressure to near 4000psi to release from liner. Bleed to 0 pressure and set ZXP packer. Turn over to rig. Pressure to 500psi on drill pipe and pull drill pipe from hanger. Circulate out excess cement (at 180spm, 1225psi). Rig down cementing head and hoses. Make up to Topdrive. Circulate hole clean. Check for flow. Pump dry job. Pull out of hole with 5" drill pipe and 4" drill pipe. Pull out of hole laying down 4" HWDP. Break and lay down setting tool. Begin cleaning pits and racking and prepping 4 1/2" tubing. Begin mixing brine after pits are clean. Stage bottom hole assembly for polish mill run. Pick up, make up and run in hole lower polish mill assembly (mill, 2 crossovers, 7" scraper, bit sub). Continue running in hole with 4" drill pipe. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 • REPORT BY Craig Silva Marathon Oil Company EPOCH • Kenai Gas Field DAILY WELLSITE REPORT PI KDU 9 REPORT FOR John Nicholson / Dan Byrd DATE Aug 11, 2008 DEPTH 9850 PRESENT OPERATION Finishing laying down drill pipe TIME 24:00 YESTERDAY 9850 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 9845' 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 9850 / 9537 TVD MW 8.7 VIS PV YP FL Gels CL- 31000 FC KCL Brine SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE III DITCH GAS 21 @ (Inside casing from 8691) 0 @ Displacing with brine N/A TRIP GAS 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 DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running 4" drill pipe in hole to 3867'. Pick up and make up upper scraper assembly (crossover, crossover DP, 9 5/8" scraper bit sub). Change to 5" inserts. Continue running in hole with 5" drill pipe from 3877' to 8546'. Circulate at 8546' (at 80spm, 650psi, 158 gpm). Record maximum 9 units of gas (inside casing). Slip 33' of drill line. Inspect line. Reset and check crown -o- matic. Service rig. Grease crown, blocks, DAILY Topdrive and carrier. Continue to run in hole from 8546' to top of liner at 8691'. Polish liner bore (15.48' in to stop lock) as per Baker toolhand. ACTIVITY (Polish at 30rpm, 11K torque, 31 spm, 61gpm, 400psi). Circulate out residual soft unset cement (from top of liner bore). Record maximum 21 units SUMMARY of gas (inside casing). Displace well with 6% KCL (at 170spm, 1500psi, 336gpm). Test liner to 4000psi for 30 minutes. Pull out of hole laying down 5" drill pipe in string. Run back in hole with 9 more stands of 5" drill pipe remaining in derrick. Pull out of hole laying down last 18 joints of 5" drill pipe. Pull, break and lay down upper scraper assembly. Change to 4" inserts. Pull out of hole laying down 4" drill pipe. Pull, break and lay down lower scraper assembly with polish mill. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 RW: 585 REPORT BY Craig Silva • Marathon Company EPOCIHI • Kenai Kenai G G Gas Field DAILY WELLSITE REPORT KDU 9 REPORT FOR John Nicholson / Dan Byrd DATE Aug 12, 2008 DEPTH 9850 PRESENT OPERATION Nippling down BOP stack TIME 24:00 YESTERDAY 9850 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 9845' 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 9850 / 9537 TVD MW 8.6 VIS PV YP FL Gels CL- 31000 FC KCL Brine SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE III DITCH GAS 2 @ inside casing at 8691 0 @ circulating brine around 0 TRIP GAS 2 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 Pull and lay down wear bushing. Lay down bushing puller and test plug. Clear rig floor of all handling tools. Clean floor. Rig up Weatherford to run 4 1/2" tubing. Hold pre -job meeting on procedures and safety for running tubing. Pick up and make up seal assembly to 4 1/2" tubing. Run 4 1/2" tubing in hole to 8681'. Break circulation. Run in and tag top of packer at 8691' then pull up to 8687'. Reverse around inhibited brine (mixed with DAILY Conqor 303A). Stop circulating and sting into seal bore. Push to 8705'. Land out and set hanger. Test hanger body seals to 4000psi for 10 ACTIVITY minutes. Test contact seal of 7" casing by 4'A" tubing to 1000psi for 10 minutes. Flush all surface equipment (mud pumps 1 -2 -3, choke manifold, SUMMARY stack, choke and kill lines, cementing lines, Topdrive, poorboy, stand pipe manifold and all lines to pits). Rig down, lay down and load off Weatherford hydraulic tongs, power slips and other tubing - casing handling equipment. Load off and clear rig floor of all remaining tools. Set Blowout Prevention Valve. Begin cleaning pits. Rig down drip pan, turnbuckles, fill -up line, trip tank line, flowline, and choke and kill lines. Nipple down check and kill valves. Begin nippling down BOP stack. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 RW: 585 REPORT BY Craig Silva • Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KDU 9 REPORT FOR John Nicholson / Dan Byrd DATE Aug 13, 2008 DEPTH 9850 PRESENT OPERATION General rig down operations TIME 24:00 YESTERDAY 9850 24 HOUR FOOTAGE 0 CASING INFORMATION 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 III 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 DAILY Finish nippling down BOP stack, DSA and spacer spool. Load off BOP stack. Finish cleaning pits and clean sump. Clean and inspect gas ACTIVITY buster. Prepare and install the tree. Remove BPV. Install 2 -way check valve. Test void to 5000psi for 10 minutes. Test tree to 5000psi for 10 SUMMARY minutes. Pull 2 -way check valve and reinstall BPV. Begin general rig down of most Glacier No.1 rig components for its move across the pad to KBU 42 -7RD. EPOCH PERSONNEL ON BOARD 1 DAILY COST Rig Down: 2125 REPORT BY Craig Silva III