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Home My WebLink About210-064CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:McLellan, Bryan J (OGC) To:AOGCC Records (CED sponsored) Subject:Fwd: Paxton 4 AOGCC 10-403 325-429 PTD 210-064 Approved 07-22-25 Date:Wednesday, August 13, 2025 12:42:41 PM For the wellfile… Sent from my iPhone Begin forwarded message: From: "McLellan, Bryan J (OGC)" <bryan.mclellan@alaska.gov> Date: August 13, 2025 at 12:42:00 PM AKDT To: Scott Warner <Scott.Warner@hilcorp.com> Subject: Re: Paxton 4 AOGCC 10-403 325-429 PTD 210-064 Approved 07- 22-25 Scott, Hilcorp has approval to perforate the remaining perf intervals listed in the sundry based on the low SITP observed. Bryan Sent from my iPhone On Aug 13, 2025, at 11:45 AM, Scott Warner <Scott.Warner@hilcorp.com> wrote: Bryan, By the end of today, all approved perforations up to 3975' MD / 1707' TVD will be completed. We tagged fill with slickline at 5501' KB but were unable to reach deeper. There is a known restriction around 5240' that we were able to pass with slickline, but not with e-line. As a result, the deepest new perforation was BEL 58A at 5104–5110' MD / 2372–2376' TVD. Perforations were completed from BEL 58A up through BEL 38. No sustained initial tubing pressure (SITP) above 400 psi was observed, and there was no significant change in flow rate. We suspect water is covering the perforations and plan to attempt unloading the well once all perforations are completed today. If that effort is unsuccessful and gas production remains minimal, we propose proceeding with the perforations listed in the sundry above the shallowest allowable interval. This request is based on evidence that the recently shot perforations are no longer at original pressure and do not pose a risk to the shallower proposed intervals. I am hesitant to set a plug due not wanting to shut off the ~600 mcf the well was making prior to perforations. This well has had issues with unloading and I'm hoping if additional perforations are added we can keep the well unloaded and sustain steady production. Please let me know if you'd like to discuss further or need additional data to confirm that the lower perforations are no longer at original pressure and pose no risk to upper zones. Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: Donna Ambruz <dambruz@hilcorp.com> Sent: Tuesday, July 22, 2025 2:32 PM To: Scott Warner <Scott.Warner@hilcorp.com> Cc: Noel Nocas <Noel.Nocas@hilcorp.com> Subject: Paxton 4 AOGCC 10-403 325-429 PTD 210-064 Approved 07-22- 25 FYI – Please distribute as necessary. Thank you. Donna Ambruz Operations/Regulatory Tech KEN Asset Team Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 907.777.8305 - Direct dambruz@hilcorp.com The information contained in this email message is confidential and may be legally privileged and isintended only for the use of the individual or entity named above. If you are not an intended recipientor 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, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, thenpromptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibilityof 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. <Paxton 4 AOGCC 10-403 325-429 PTD 210-064 Approved 07-22- 25.pdf> 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? Yes No 9. Property Designation (Lease Number):10. Field: 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 6,953'none Casing Collapse Structural Conductor Surface 4,750psi Intermediate Production 7,500psi Liner Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments:Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16. Verbal Approval:Date: GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng ZXP Liner Top Pkr; N/A 1923' MD (1307' TVD); N/A, N/A 3,831'6,505'3,476' Ninilchik Beluga-Tyonek Gas 20" 9-5/8" See Attached Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Ninilchik Unit Paxton 4CO 701C Same 3,535'4-1/2" ~1155 psi 4,674' none Length July 29, 2025 4-1/2" 6,579' Perforation Depth MD (ft): See Attached Schematic 6,870psi 117'117' 2,494' Size 117' 2,494' MD Hilcorp Alaska, LLC Proposed Pools: 12.6# / L-80 TVD Burst 1954' 8,430psi 1,417' Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0384372/FEE-CIRI 210-064 50-133-20589-00-00 Tubing Size: PRESENT WELL CONDITION SUMMARY Scott Warner, Operations Engineer AOGCC USE ONLY Tubing Grade: scott.warner@hilcorp.com 907-564-4506 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi):Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: m n P s 66 t 2 N Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Grace Christianson at 8:07 am, Jul 21, 2025 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.07.18 08:24:19 - 08'00' Noel Nocas (4361) 325-429 If Beluga 120 perfs are shot, shallowest allowable perf is 1745' TVD. Otherwise, 1698' TVD is the shallowest allowable perf. SFD 7/21/2025 10-404 BJM 7/22/25 DSR-7/21/25 Notify AOGCC and obtain approval before setting plugs. *&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.07.22 13:38:28 -08'00'07/22/25 RBDMS JSB 072225 Well Prognosis Well Name: Paxton 4 API Number: 50-133-20589-00-00 Current Status: Producing Gas Well Permit to Drill Number: 210-064 Regulatory Contact: Donna Ambruz (907) 777-8305 First Call Engineer: Scott Warner (907) 564-4506 (O) (907) 830-8863 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP: 1495 psi @ 3397’ TVD Based on 0.44 psi/ft Max. Potential Surface Pressure: 1155 psi Based on 0.1 psi/ft gas gradient to surface Applicable Frac Gradient: 0.78 psi/ft using 15.0 ppg EMW FIT at the surface casing shoe Shallowest Allowable Perf TVD: MPSP/(0.78-0.1) = 1155 psi / 0.68 = 1698‘ TVD Top of Applicable Gas Pool: 2617’ MD/ 1438’ TVD Well Status: Online Gas Producer flowing at 565 mcfd, 13 bwpd, 90 psi FTP Brief Well Summary Paxton 04 was drilled and completed in 2010 targeting the Beluga sands. Additional perfs were added in 2012 which helped boost rate but also brought in 10-20 bwpd. Additional perf adds in 2020 helped hold back the water but as rate declined water production returned. A cap string was installed in 2021 to assist with water unloading. This sundry request proposes adding new Beluga perforations to enhance production. Notes Regarding Wellbore Condition x Inclination o Max deviation of 81.2° @ 2417’ MD 71° @ 1595’ MD Sail angle of 80° from 2300’ – 3700’ MD x Min ID o 3.80+” – CT mill out run completed on 10/6/10 x Recent Tags o 12/27/21 Cap string ran to 3900’ MD – no issues o 11/15/20 CT tagged at 5285’, pulled up hole w/ 5k overpull. Worked past obstruction. RIH to 6000’ without noting a tag. Perforated w/ 2-7/8” x 17’ perf gun. Saw same restriction at ~ 5285’ the following day w/ 2-7/8” x 11’ perf gun, ultimately couldn’t pass 5272’. RIH w/ 2” x 11’ perf gun and didn’t see any weight fluctuations through restriction. RIH to 5900’ without noting a tag. o 10/24/20 EL GPT w/ welltec tractors. Had to tractor from 1900’ – 4050’. RIH to 5240’ and sat down. Pulled 500 lbs over to move up hole. Could not pass after 4 more attempts. RDMO o 2/15/17 EL PLT w/dual tractors. Tagged liner top packer at 1980’ MD- had to work tractors but got through. Tractor required from 1675’-4200’ before free falling. Tagged at 6420’ MD. Tools hung up at ~5290’ MD multiple times throughout the job. Well Prognosis Pre-Sundry Steps: 1. MIRU Cap string truck 2. Pull 3/8” cap string from 3900’ MD 3. RD cap string truck Procedure: 1. MIRU E-line w/ tractor and pressure control equipment 2. PT lubricator to 250 psi low / 2,000 psi high 3. RIH and perforate BEL 38 – BEL 100 sands from bottom up: a. If BEL 120 is accessible and perforated, perfs will only be shot up to the BEL 40 due to shallowest allowable perf depth shifting to 1733’ TVD Below are proposed targeted sands in order of testing (bottom/up), but additional sand may be added depending on results of these perfs, between the proposed top and bottom perfs Zone Top MD Btm MD Top TVD Btm TVD Footage BEL 5 ±2,648' ±2,654' ±1,443' ±1,444' ±6' BEL 5 ±2,721' ±2,733' ±1,456' ±1,458' ±12' BEL 10 ±2,786' ±2,806' ±1,468' ±1,471' ±20' BEL 10 ±2,806' ±2,865' ±1,471' ±1,482' ±59' BEL 13 ±2,976' ±2,996' ±1,501' ±1,505' ±20' BEL 13 ±3,014' ±3,034' ±1,508' ±1,512' ±20' BEL 13 ±3,034' ±3,070' ±1,512' ±1,518' ±36' BEL 16 ±3,254' ±3,274' ±1,550' ±1,554' ±20' BEL 16 ±3,274' ±3,315' ±1,554' ±1,561' ±41' BEL 20 ±3,496' ±3,529' ±1,593' ±1,599' ±33' BEL 30 ±3,754' ±3,780' ±1,642' ±1,648' ±26' BEL 30 ±3,797' ±3,803' ±1,652' ±1,654' ±6' BEL 30 ±3,837' ±3,847' ±1,663' ±1,666' ±10' BEL 34 ±3,868' ±3,874' ±1,672' ±1,674' ±6' BEL 34 ±3,890' ±3,896' ±1,679' ±1,680' ±6' BEL 37 ±3,925' ±3,931' ±1,690' ±1,692' ±6' Shallowest allowable perf of 1698' TVD based on deepest perf being at original pressure. BEL 115 was used as deepest open perf. Proposed BEL 120 perf is below a tag depth from 2017 therefore unlikely. Perfs above the BEL 38 will require more discussion with AOGCC before perforating BEL 38 ±3,975' ±3,981' ±1,707' ±1,709' ±6' BEL 38 ±3,985' ±3,991' ±1,710' ±1,713' ±6' BEL 38 ±3,995' ±4,001' ±1,714' ±1,716' ±6' BEL 38 ±4,003' ±4,009' ±1,717' ±1,719' ±6' BEL 38 ±4,015' ±4,021' ±1,722' ±1,724' ±6' BEL 40 ±4,073' ±4,091' ±1,745' ±1,753' ±18' BEL 41 ±4,122' ±4,128' ±1,766' ±1,769' ±6' BEL 43 ±4,210' ±4,216' ±1,808' ±1,811' ±6' BEL 44 ±4,239' ±4,245' ±1,823' ±1,826' ±6' Well Prognosis BEL 44 ±4,253' ±4,259' ±1,830' ±1,833' ±6' BEL 45 ±4,279' ±4,285' ±1,844' ±1,847' ±6' BEL 45 ±4,288' ±4,297' ±1,848' ±1,853' ±9' BEL 46 ±4,310' ±4,320' ±1,860' ±1,865' ±10' BEL 47 ±4,350' ±4,362' ±1,882' ±1,888' ±12' BEL 47 ±4,375' ±4,381' ±1,895' ±1,898' ±6' BEL 48 ±4,420' ±4,434' ±1,920' ±1,928' ±14' BEL 48 ±4,495' ±4,501' ±1,964' ±1,967' ±6' BEL 49 ±4,515' ±4,521' ±1,976' ±1,980' ±6' BEL 49 ±4,529' ±4,539' ±1,985' ±1,991' ±10' BEL 50 ±4,608' ±4,618' ±2,034' ±2,041' ±10' BEL 50 ±4,632' ±4,638' ±2,050' ±2,054' ±6' BEL 51 ±4,653' ±4,661' ±2,063' ±2,069' ±8' BEL 51 ±4,674' ±4,684' ±2,077' ±2,084' ±10' BEL 52 ±4,716' ±4,723' ±2,105' ±2,109' ±7' BEL 52 ±4,741' ±4,755' ±2,121' ±2,130' ±14' BEL 53 ±4,792' ±4,804' ±2,155' ±2,163' ±12' BEL 55 ±4,918' ±4,927' ±2,239' ±2,246' ±9' BEL 56 ±4,963' ±4,969' ±2,271' ±2,275' ±6' BEL 58A ±5,104' ±5,110' ±2,372' ±2,376' ±6' BEL 60 ±5,218' ±5,224' ±2,458' ±2,463' ±6' BEL 70 ±5,332' ±5,338' ±2,548' ±2,553' ±6' BEL 73 ±5,386' ±5,392' ±2,591' ±2,596' ±6' BEL 73 ±5,392' ±5,398' ±2,596' ±2,600' ±6' BEL 74 ±5,459' ±5,467' ±2,649' ±2,655' ±8' BEL 90 ±5,678' ±5,684' ±2,822' ±2,827' ±6' BEL 92 ±5,809' ±5,815' ±2,926' ±2,931' ±6' BEL 100 ±6,273' ±6,279' ±3,293' ±3,298' ±6' BEL 120 ±6,494' ±6,504' ±3,468' ±3,476' ±10' a. Proposed perfs below shallowest allowable perf depth are also shown on the proposed schematic in red font b. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c. Use Gamma/CCL to correlate d. Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (if using switched guns, wait 10 min between shots) e. Pending well production, all perf intervals may not be completed f. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations. i. Patch will most likely be used to avoid shutting off current production. g. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations Well Prognosis 4. RDMO 5. If necessary, re- run cap string to aid with water production if encountered post perforating. Attachments: 1. Current Schematic 2. Proposed Schematic 3. Standard Well Procedure – N2 Operations _____________________________________________________________________________________ Updated by: JLL 01/17/22 SCHEMATIC Well: Paxton 4 API #50-133-20589-00-00 PTD: 210-064 RKB=21’ AGL OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole Cmt w/ 282 bbls of 11.8 ppg Type-1 cmt. 95 bbls to surface 4-1/2" 8-1/2" hole Cmt w/ 325 bbls of 14 ppg. 60 bbls circ’d to surface. Did not bump plug.Liner edged out on coal at 6579’ MD, and couldn’t make it to TD. Cemented in place there. INCLINATION DETAIL Sail: 80º from 2,400' - 3,700' MD Final angle: 38º at 6,494' MD (PBTD) MISC. INFORMATION Marker Joints: 4,778 & 6,358’ PBTD = 6,505’MD / 3,476’ TVD TD = 6,953’ MD / 3,831’ TVD BEL 37 BEL 91A BEL 93 2/3/4 9-5/8” 1 4-1/2” ToC at ToL (10/6/10 CBL) BEL 100 /115 BEL 92-2 BEL 70s -80s BEL 41 BEL 50s – 60s CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-65 / PE N/A Surf 117' 9-5/8" Surface 40# / L-80 / Buttress 8.835 Surf 2,494' 4-1/2" Production 12.6# / L-80 / Hydrill 563 3.958 1,905’ 6,579' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / IBT 3.958 Surf 1,954’ CAPILLARY STRING 3/8”Cap String (Ran 12/27/21)Surf 3,900’ JEWELRY DETAIL No Depth (MD) Depth (TVD) ID OD Item 1 1,505’ 1,185’ Chemical Injection Mandrel 2 >3.80” ZXP LTP 3 1,923’ 1,307’ >3.80 4-1/2” Liner hanger 41,954’1,314’>3.80 4-1/2” seal assembly stung into ZXP LTP. (7’ swallowed) PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD) Btm (TVD)Length Size SPF Perf Date BEL 37 3948 3966 1697 1704 18 2-7/8”6 11/17/20 BEL 41 4146 4166 1777 1787 20 2”3 1/19/20 BEL 53 4826 4836 2177 2184 10 3-3/8”6 3/22/12 BEL 58A 5119 5133 2383 2393 14 3-3/8”4 10/18/10 BEL_59 5171 5182 2422 2430 11 3-3/8”4 10/18/10 BEL 60 5224 5239 2463 2475 15 3-3/8”6 10/15/10 BEL 65 5291 5299 2515 2522 8 3-3/8”6 10/15/10 BEL 70 5317 5323 2536 2541 6 3-3/8”6 10/13/10 BEL 72 5370 5379 2578 2585 9 3-3/8”6 10/13/10 BEL 82 5582 5593 2746 2755 11 3-3/8”4 10/11/10 BEL 91A 5762 5773 2889 2897 11 2-7/8”6 11/17/20 BEL 92-2 5830 5839 2942 2950 9 3-3/8”4 10/11/10 BEL 93 5913 5930 3008 3022 17 2-7/8”11/15/20 BEL 100 6236 6242 3263 3268 6 3-3/8”4 10/9/10 BEL 100 6251 6258 3275 3281 7 3-3/8”4 10/9/10 BEL 115 6405 6420 3397 3408 15 3-3/8”4 10/9/10 _____________________________________________________________________________________ Updated by: SRW 07-09-25 PROPOSED Well: Paxton 4 API #50-133-20589-00-00 PTD: 210-064 RKB=21’ AGL OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole Cmt w/ 282 bbls of 11.8 ppg Type-1 cmt. 95 bbls to surface 4-1/2" 8-1/2" hole Cmt w/ 325 bbls of 14 ppg. 60 bbls circ’d to surface. Did not bump plug. Liner edged out on coal at 6579’ MD, and couldn’t make it to TD. Cemented in place there. INCLINATION DETAIL Sail: 80º from 2,400' - 3,700' MD. Final angle: 38º at 6,494' MD (PBTD) JEWELRY DETAIL No Depth (MD) Depth (TVD) ID OD Item 1 1,505’1,185’Chemical Injection Mandrel 2 >3.80”ZXP LTP 3 1,923’1,307’>3.80 4-1/2” Liner hanger 4 1,954’ 1,314’>3.80 4-1/2” seal assembly stung into ZXP LTP. (7’ swallowed) 5 5,240’-5,295’~2,475’<2-7/8”Unknown restriction- have had issues passing with CT and EL tractors MISC. INFORMATION Marker Joints: 4,778 & 6,358’ RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-65 / PE N/A Surf 117' 9-5/8"Surface 40# / L-80 / Buttress 8.835 Surf 2,494' 4-1/2"Production 12.6# / L-80 / Hydrill 563 3.958 1,905’6,579' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / IBT 3.958 Surf 1,954’ CAPILLARY STRING 3/8”Cap String (Ran 12/27/21)Surf TBD PERFORATION DETAIL cont’d on pg 2 Zone Top (MD)Btm (MD) Top (TVD) Btm (TVD)Length Date Status BEL 37 3948 3966 1697 1704 18 11/17/2020 Open BEL 38 ±3,975'±3,981'±1,707'±1,709'±6'Proposed TBD BEL 38 ±3,985'±3,991'±1,710'±1,713'±6'Proposed TBD BEL 38 ±3,995'±4,001'±1,714'±1,716'±6'Proposed TBD BEL 38 ±4,003'±4,009'±1,717'±1,719'±6'Proposed TBD BEL 38 ±4,015'±4,021'±1,722'±1,724'±6'Proposed TBD BEL 40 ±4,073'±4,091'±1,745'±1,753'±18'Proposed TBD BEL 41 ±4,122'±4,128'±1,766'±1,769'±6'Proposed TBD BEL 41 4146 4166 1777 1787 20 1/19/2020 Open BEL 43 ±4,210'±4,216'±1,808'±1,811'±6'Proposed TBD BEL 44 ±4,239'±4,245'±1,823'±1,826'±6'Proposed TBD BEL 44 ±4,253'±4,259'±1,830'±1,833'±6'Proposed TBD BEL 45 ±4,279'±4,285'±1,844'±1,847'±6'Proposed TBD BEL 45 ±4,288'±4,297'±1,848'±1,853'±9'Proposed TBD BEL 46 ±4,310'±4,320'±1,860'±1,865'±10'Proposed TBD BEL 47 ±4,350'±4,362'±1,882'±1,888'±12'Proposed TBD BEL 47 ±4,375'±4,381'±1,895'±1,898'±6'Proposed TBD BEL 48 ±4,420'±4,434'±1,920'±1,928'±14'Proposed TBD BEL 48 ±4,495'±4,501'±1,964'±1,967'±6'Proposed TBD BEL 49 ±4,515'±4,521'±1,976'±1,980'±6'Proposed TBD BEL 49 ±4,529'±4,539'±1,985'±1,991'±10'Proposed TBD BEL 50 ±4,608'±4,618'±2,034'±2,041'±10'Proposed TBD BEL 50 ±4,632'±4,638'±2,050'±2,054'±6'Proposed TBD BEL 51 ±4,653'±4,661'±2,063'±2,069'±8'Proposed TBD BEL 51 ±4,674'±4,684'±2,077'±2,084'±10'Proposed TBD BEL 52 ±4,716'±4,723'±2,105'±2,109'±7'Proposed TBD _____________________________________________________________________________________ PROPOSED Well: Paxton 4 API #50-133-20589-00-00 PTD: 210-064 PERFORATION DETAIL cont’d on pg 1 Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) Length Date Status BEL 52 ±4,741' ±4,755' ±2,121' ±2,130' ±14' Proposed TBD BEL 53 ±4,792' ±4,804' ±2,155' ±2,163' ±12' Proposed TBD BEL 53 4826 4836 2177 2184 10 3/22/2012 Open BEL 55 ±4,918' ±4,927' ±2,239' ±2,246' ±9' Proposed TBD BEL 56 ±4,963' ±4,969' ±2,271' ±2,275' ±6' Proposed TBD BEL 58A ±5,104' ±5,110' ±2,372' ±2,376' ±6' Proposed TBD BEL 58A 5119 5133 2383 2393 14 10/18/2010 Open BEL_59 5171 5182 2422 2430 11 10/18/2010 Open BEL 60 ±5,218' ±5,224' ±2,458' ±2,463' ±6' Proposed TBD BEL 60 5224 5239 2463 2475 15 10/15/2010 Open BEL 65 5291 5299 2515 2522 8 10/15/2010 Open BEL 70 5317 5323 2536 2541 6 10/13/2010 Open BEL 70 ±5,332' ±5,338' ±2,548' ±2,553' ±6' Proposed TBD BEL 72 5370 5379 2578 2585 9 10/13/2010 Open BEL 73 ±5,386' ±5,392' ±2,591' ±2,596' ±6' Proposed TBD BEL 73 ±5,392' ±5,398' ±2,596' ±2,600' ±6' Proposed TBD BEL 74 ±5,459' ±5,467' ±2,649' ±2,655' ±8' Proposed TBD BEL 82 5582 5593 2746 2755 11 10/11/2010 Open BEL 90 ±5,678' ±5,684' ±2,822' ±2,827' ±6' Proposed TBD BEL 91A 5762 5773 2889 2897 11 11/17/2020 Open BEL 92 ±5,809' ±5,815' ±2,926' ±2,931' ±6' Proposed TBD BEL 92-2 5830 5839 2942 2950 9 10/11/2010 Open BEL 93 5913 5930 3008 3022 17 11/15/2020 Open BEL 100 6236 6242 3263 3268 6 10/9/2010 Open BEL 100 6251 6258 3275 3281 7 10/9/2010 Open BEL 115 6405 6420 3397 3408 15 10/9/2010 Open BEL 120 ±6,494' ±6,504' ±3,468' ±3,476' ±10' Proposed TBD 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.) 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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. 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 6,953 feet N/A feet true vertical 3,831 feet N/A feet Effective Depth measured 6,505 feet 1,923 feet true vertical 3,476 feet 1,307 feet Perforation depth Measured depth 3,948 - 6,420 feet True Vertical depth 1,697 - 3,408 feet Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 1,954' (MD) 1,314' (TVD) 1,923' (MD) Packers and SSSV (type, measured and true vertical depth)ZXP Liner Top 1,307' (TVD) N/A 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. 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: Contact Name: Contact Email: Authorized Title:Contact Phone: 7,500psi 6,870psi 8,430psi Burst Collapse 4,750psi 117' 1,417' 3,535'6,579'4-1/2" measuredPlugs Junk measured N/A Length 117' 2,494' Size Conductor Surface Intermediate 20" 9-5/8" Production Liner 4,674' Casing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 210-064 50-133-20589-00-00 N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: ADL00384372 / FEE-CIRI Ninilchik Field / Beluga-Tyonek Gas Pool 3800 Centerpoint Dr, Suite 1400 Anchorage, AK 99503 3. Address: Paxton 4 Hilcorp Alaska, LLC Other: Install Cap String measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 37 01,682 0 84 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 117' 2,494' N/A 0 Structural TVD 321-530 Sr Pet Eng: Sr Pet Geo: Sr Res Eng: Authorized Name and Digital Signature with Date: WINJ WAG 1,976 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 26 96 Ryan Rupert ryan.rupert@hilcorp.com (907) 777-8503Dan Marlowe - Operations Manager L G Form 10-404 Revised 10/2021 Submit Within 30 days of Operations By Samantha Carlisle at 8:59 pm, Nov 09, 2021 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2021.11.09 15:45:49 -09'00' Dan Marlowe (1267) RBDMS HEW 11/10/2021 BJM 2/11/22 DSR-11/10/21 _____________________________________________________________________________________ Updated by: JLL 11/08/21 SCHEMATIC Well: Paxton 4 API #50-133-20589-00-00 PTD: 210-064 RKB=21’ AGL OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole Cmt w/ 282 bbls of 11.8 ppg Type-1 cmt. 95 bbls to surface 4-1/2" 8-1/2" hole Cmt w/ 325 bbls of 14 ppg. 60 bbls circ’d to surface. Did not bump plug.Liner edged out on coal at 6579’ MD, and couldn’t make it to TD. Cemented in place there. INCLINATION DETAIL Sail: 80º from 2,400' - 3,700' MD Final angle: 38º at 6,494' MD (PBTD) MISC. INFORMATION Marker Joints: 4,778 & 6,358’ PBTD = 6,505’MD / 3,476’ TVD TD = 6,953’ MD / 3,831’ TVD BEL 37 BEL 91A BEL 93 2/3/4 9-5/8” 1 4-1/2” ToC at ToL (10/6/10 CBL) BEL 100 /115 BEL 92 -2 BEL 70s -80s BEL 41 BEL 50s – 60s CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-65 / PE N/A Surf 117' 9-5/8" Surface 40# / L-80 / Buttress 8.835 Surf 2,494' 4-1/2" Production 12.6# / L-80 / Hydrill 563 3.958 1,905’ 6,579' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / IBT 3.958 Surf 1,954’ CAPILLARY STRING 3/8” Cap String Surf 3,920’ JEWELRY DETAIL No Depth (MD) Depth (TVD) ID OD Item 1 1,505’ 1,185’ Chemical Injection Mandrel 2 >3.80” ZXP LTP 3 1,923’ 1,307’ >3.80 4-1/2” Liner hanger 41,954’1,314’>3.80 4-1/2” seal assembly stung into ZXP LTP. (7’ swallowed) PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD) Btm (TVD)Length Size SPF Perf Date BEL 37 3948 3966 1697 1704 18 2-7/8”6 11/17/20 BEL 41 4146 4166 1777 1787 20 2”3 1/19/20 BEL 53 4826 4836 2177 2184 10 3-3/8”6 3/22/12 BEL 58A 5119 5133 2383 2393 14 3-3/8”4 10/18/10 BEL_59 5171 5182 2422 2430 11 3-3/8”4 10/18/10 BEL 60 5224 5239 2463 2475 15 3-3/8”6 10/15/10 BEL 65 5291 5299 2515 2522 8 3-3/8”6 10/15/10 BEL 70 5317 5323 2536 2541 6 3-3/8”6 10/13/10 BEL 72 5370 5379 2578 2585 9 3-3/8”6 10/13/10 BEL 82 5582 5593 2746 2755 11 3-3/8”4 10/11/10 BEL 91A 5762 5773 2889 2897 11 2-7/8”6 11/17/20 BEL 92-2 5830 5839 2942 2950 9 3-3/8”4 10/11/10 BEL 93 5913 5930 3008 3022 17 2-7/8”11/15/20 BEL 100 6236 6242 3263 3268 6 3-3/8”4 10/9/10 BEL 100 6251 6258 3275 3281 7 3-3/8”4 10/9/10 BEL 115 6405 6420 3397 3408 15 3-3/8”4 10/9/10 Rig Start Date End Date Cap String 10/10/21 10/10/21 10/10/2021 - Sunday RU wellhead packoff assembly and perform leak tight test with well pressure (~100psi). Pass. Foot valve set and tested to 2650 psi. RIH with 3/8" capillary tubing to 3920' MD. Soap on line at 4 GPD. RDMO Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 4 50-133-20589-00-00 210-064 The sundry procedure called for a 3000 psi test of the wellhead packoff. Hilcorp reported that they only tested to 100 psi on Nov 9, 2021. They are planning to pull the cap string and re-test this and several other wells to MPSP. bjm 1 Carlisle, Samantha J (OGC) From:McLellan, Bryan J (OGC) Sent:Tuesday, December 14, 2021 12:32 PM To:Ryan Rupert Cc:Dan Marlowe; Jacob Flora; Donna Ambruz; Juanita Lovett; Pete Iverson; Aras Worthington; Chris Walgenbach Subject:RE: [EXTERNAL] RE: Paxton-04 (PTD#210-064) Ryan, Hilcorp should document the work on 10‐404’s for the 3 wells where you plan to do work. Thanks for the follow‐up. 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: Ryan Rupert <Ryan.Rupert@hilcorp.com> Sent: Monday, December 13, 2021 4:29 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Dan Marlowe <dmarlowe@hilcorp.com>; Jacob Flora <Jake.Flora@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com>; Juanita Lovett <jlovett@hilcorp.com>; Pete Iverson <jpiverson@hilcorp.com>; Aras Worthington <Aras.Worthington@hilcorp.com>; Chris Walgenbach <cwalgenbach@hilcorp.com>; Ryan Rupert <Ryan.Rupert@hilcorp.com> Subject: RE: [EXTERNAL] RE: Paxton‐04 (PTD#210‐064) Bryan‐ Just wanted to update you on the status for the below wells, and our plans forward. How would you like us to document and report the activity on the 3 wells below that we will do work on? ‐ No further action 1. GO‐06:  Cap string was pulled 12/6/21 and left out of hole for now  Will be reported on 404 closing sundry #321‐553  If cap string is re‐run in the future under the current well conditions, the cap string packoff will be tested to above MASP from sundry #321‐553 (MASP in sundry = 1192psi) 2. KGSF‐1A  Located records CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. 2  Correct 404 submitted last week  Was actually PT’d to 3680psi  MASP in sundry = 3282psi ‐ Will pull and PT before 12/31/21 1. FC‐04:  Packoff was PT’d to 2500psi at time of install 6/12/18 (reported on 404)  Sundry MASP = 1530  Pulled cap string and pack off 6/8/20 due to plugging, and then re‐ran 7/4/20  Will pull and test to 2000psi, then re‐run 2. Kalotsa‐04  Sundry MASP = 2725 psi  Will pull and test to 3000psi, then re‐run 3. Paxton‐04  Sundry MASP = 1195psi  Will pull and test to 1500psi, then re‐run Ryan Rupert Alaska South-Central Team Ops Engineer (#13088) 907-301-1736 (Cell) 907-777-8503 (Office) From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Thursday, December 2, 2021 12:44 PM To: Ryan Rupert <Ryan.Rupert@hilcorp.com> Cc: Dan Marlowe <dmarlowe@hilcorp.com>; Jacob Flora <Jake.Flora@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com>; Juanita Lovett <jlovett@hilcorp.com>; Pete Iverson <jpiverson@hilcorp.com>; Aras Worthington <Aras.Worthington@hilcorp.com>; Chris Walgenbach <cwalgenbach@hilcorp.com> Subject: RE: [EXTERNAL] RE: Paxton‐04 (PTD#210‐064) Ryan, Thanks for self‐reporting this issue. Hilcorp will need to pressure test these capstring packoffs to Maximum Potential Surface Pressure (MPSP), as defined in 20 AAC 25.280(b)(4), within 30 days. If well FC‐04 was already tested above MPSP, then that one is OK as it is, even though it’s lower than what it said in the 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 3 From: Ryan Rupert <Ryan.Rupert@hilcorp.com> Sent: Wednesday, December 1, 2021 1:25 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Dan Marlowe <dmarlowe@hilcorp.com>; Jacob Flora <Jake.Flora@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com>; Juanita Lovett <jlovett@hilcorp.com>; Pete Iverson <jpiverson@hilcorp.com>; Aras Worthington <Aras.Worthington@hilcorp.com>; Chris Walgenbach <cwalgenbach@hilcorp.com>; Ryan Rupert <Ryan.Rupert@hilcorp.com> Subject: RE: [EXTERNAL] RE: Paxton‐04 (PTD#210‐064) Bryan‐ Sounds like you and Jake had a good discussion last week about this. Just to summarize, here’s the wells we found that have cap strings currently installed, and don’t have documentation of PT’s matching those specified in the sundry. Please let me know if you’d like any further action from our side. Thanks, Field Well when ran? production status? Sundry vs executed Ninilchik FC‐04 July‐2020 online PT to 2500 executed instead of sundried 3000 Swanson River KGSF‐1A Jan‐2021 online PT to 3000psi in sundry. No documentation of PT Ninilchik Kalotsa‐04 Aug‐2021 online PT to 3500 in sundry. No documentation of PT Ninilchik Paxton‐04 Oct‐2021 online PT to 3000 in sundry. No documentation of PT Ninilchik GO‐06 Nov‐2021 Offline (won’t flow) PT to 3000 in sundry. No documentation of PT Ryan Rupert Alaska South-Central Team Ops Engineer (#13088) 907-301-1736 (Cell) 907-777-8503 (Office) From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Tuesday, November 23, 2021 11:52 AM To: Ryan Rupert <Ryan.Rupert@hilcorp.com> Cc: Dan Marlowe <dmarlowe@hilcorp.com>; Jacob Flora <Jake.Flora@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com>; Juanita Lovett <jlovett@hilcorp.com>; Pete Iverson <jpiverson@hilcorp.com>; Aras Worthington <Aras.Worthington@hilcorp.com> Subject: RE: [EXTERNAL] RE: Paxton‐04 (PTD#210‐064) Ryan, How many wells are currently operating with capillary strings that were not tested in accordance with their approved Sundries? 4 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: Ryan Rupert <Ryan.Rupert@hilcorp.com> Sent: Tuesday, November 16, 2021 5:27 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Cc: Dan Marlowe <dmarlowe@hilcorp.com>; Jacob Flora <Jake.Flora@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com>; Juanita Lovett <jlovett@hilcorp.com>; Pete Iverson <jpiverson@hilcorp.com>; Ryan Rupert <Ryan.Rupert@hilcorp.com> Subject: RE: [EXTERNAL] RE: Paxton‐04 (PTD#210‐064) We would need to pull it to surface to test the packoffs. We can do that if the agency so requests. Please advise. Ryan Rupert Alaska South-Central Team Ops Engineer (#13088) 907-301-1736 (Cell) 907-777-8503 (Office) From: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Sent: Wednesday, November 10, 2021 8:59 AM To: Ryan Rupert <Ryan.Rupert@hilcorp.com> Cc: Dan Marlowe <dmarlowe@hilcorp.com>; Jacob Flora <Jake.Flora@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com>; Juanita Lovett <jlovett@hilcorp.com> Subject: [EXTERNAL] RE: Paxton‐04 (PTD#210‐064) Ryan, Thanks for reporting this. Do you need to pull the cap string to surface to test the packoffs to 3000 psi? I assume that’s the plan? 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: Ryan Rupert <Ryan.Rupert@hilcorp.com> Sent: Tuesday, November 9, 2021 3:22 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Cc: Dan Marlowe <dmarlowe@hilcorp.com>; Jacob Flora <Jake.Flora@hilcorp.com>; Donna Ambruz 5 <dambruz@hilcorp.com>; Juanita Lovett <jlovett@hilcorp.com>; Ryan Rupert <Ryan.Rupert@hilcorp.com> Subject: Paxton‐04 (PTD#210‐064) Bryan‐ This email is in regards to sundry #321‐530 for capillary string installation on Paxton #4 (PTD#210‐064). After review of the work performed, we did not pressure test the packoff assembly to 250psi low / 3000psi high as written in step #2 of the sundry. A leak tight test was performed instead using well pressure (~100psi). The foot valve run on the end of the capillary string was tested during setup to an opening pressure of 2650psi. We apologize for missing this step. The 404 for this work will be forthcoming shortly. If you have any questions or concerns, please don’t hesitate to reach out to me. Thank you, 10/10/21 Ops: RU wellhead packoff assembly and perform leak tight test with well pressure (~100psi). Pass. Foot valve set and tested to 2650 psi RIH with 3/8" capillary tubing to 3920' MD. Soap on line at 4 GPD. RDMO; Ryan Rupert Kenai Ops Engineer (13146) 907-301-1736 (Cell) 907-777-8503 (Office) 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. 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, 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: __Cap String___ 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): 6,953'none Casing Collapse Structural Conductor Surface 4,750psi Intermediate Production 7,500psi Liner Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16. Verbal Approval:Date:GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name:Ryan Rupert, Operations Engineer Contact Email:ryan.rupert@hilcorp.com Contact Phone: 907-777-8503 Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 3,831' 6,505' 3,476' ~1195 psi none 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: AOGCC USE ONLY Dan Marlowe, ASC Team Operations Manager, 907-283-1329 Tubing Grade: Tubing MD (ft): 1923' MD (1307' TVD); n/a Perforation Depth TVD (ft): Tubing Size: PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0384372/FEE-CIRI 210-064 3800 Centerpoint Dr, Suite 1400 Anchorage, AK 99503 50-133-20589-00-00 Hilcorp Alaska LLC Paxton-04 Ninilchik / Beluga-Tyonek Gas CO 701C Length Size 12.6# / L-80 TVD Burst 1954' 8,430psi MD 6,870psi 117' 1,417' 117' 2,494' 3,535'4-1/2" 20" 9-5/8" 117' 2,494' 6,579' Perforation Depth MD (ft): See Schematic 4,674' See Schematic 10/22/2021 4-1/2" ZXP Liner Top Pkr; N/A ory Statu Form 10-403 Revised 10/2021 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 9:43 am, Oct 07, 2021 321-530 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2021.10.07 09:29:12 -08'00' Dan Marlowe (1267) DSR-10/7/21 10-404 SFD 10/7/2021BJM 10/7/21 dts 10/8/2021 JLC 10/8/2021 Jeremy Price Digitally signed by Jeremy Price Date: 2021.10.08 13:45:43 -08'00' RBDMS HEW 10/8/2021 Cap String Well: Paxton-04 Date: 10/6/2021 Well Name:Paxton-04 API Number:50-133-20589-00-00 Current Status:Producing Gas Well Permit to Drill Number:210-064 Regulatory Contact:Donna Ambruz (907) 777-8305 (O) First Call Engineer:Ryan Rupert (907) 777-8503 (O)(907) 301-1736 (M) Second Call Engineer:Jake Flora (907) 777-8442 (O)(720) 988-5375 (C) Maximum Expected BHP:~ 1535 psi @ 3,408’ TVD (Based on a 0.45 psi/ft gradient to deepest open perfs) Max. Potential Surface Pressure:~ 1195 psi Using Max BHP minus 0.1 psi/ft. gas gradient to surface). Brief Well Summary Paxton-04 was a 2010 new drill. It came on at ~3MM and had very slow decline. Perfs in 2012 brought the gas up 2MM+ but did add 10-20bwpd production. Strong perf adds in 2020 appeared to have choked off the water, but as rate fell, and perfs were added in late 2020, water production returned to 20-30bwpd. Gas rates are at ~2MM now again, and the well has begun to show signs of water loading. The well has been sporadic in it’s water unloading recently. A Cap string installed in from 2018-2020 smoothed out production quite nicely. Given the deviated nature of this well, cap strings seem to provide superior results to dropping soap. The objective of this intervention is to reinstall a cap string to help with increased water production, and smooth out the current slugging. Notes Regarding Wellbore Condition x Min ID = 3.80+” (Mill out run with CT 10/6/10) x Deviation: o Max = 82 deg at 2450’ MD o >70 deg from 2400 – 3700’ MD x Mechanical history: o 11/16/20: e-coil had no issues above 5285’ MD o 1/19/20: 2-7/8” x 20’ gun ran to 4360’ MD (no tag, just stopped there). No issues Shot well flowing with estimated 700psi underbalance No hangups/issues noted along way o 2018 cap string install: run to 4800’ with no issues noted. Procedure: 1. RU Cap String Truck. 2. Stab 3/8” capillary line into wellhead pack-off assembly. Make up BHA components. Install pack-off and pressure test against swab valve 250 psi low/3,000 psi high. 3. RIH with 3/8” capillary string to ±3900’ MD. a. Deviation may stop us shallow of target depth b. Set cap string as deep as practical 4. Install slips and connect tubing to chemical injection pump. 5. Set spool of remaining line near well 6.RD cap string Unit, and turn well over to production. Attachments: 1. Proposed Schematic _____________________________________________________________________________________ Updated by DMA 11-30-20 SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Unit Well:Paxton 4 API #50-133-20589-00-00 PTD: 210-064 Initially Completed: 6/24/10 RKB=21’ AGLRKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-65 / PE N/A Surf 117' 9-5/8"Surface 40# / L-80 / Buttress 8.835 Surf 2,494' 4-1/2"Production 12.6# / L-80 / Hydrill 563 3.958 1,905’6,579' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / IBT 3.958 Surf 1,954’ JEWELRY DETAIL No Depth ID Item 1 1,505’Chemical Injection Mandrel 2 >3.80”ZXP LTP 3 1,923’>3.80 4-1/2” Liner hanger 4 1,954’>3.80 4-1/2” seal assembly stung into ZXP LTP. (7’ swallowed) PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD) Btm (TVD)Length Size SPF Perf Date BEL 37 3948 3966 1697 1704 18 2-7/8”6 11/17/20 BEL 41 4146 4166 1777 1787 20 2”3 1/19/20 BEL 53 4826 4836 2177 2184 10 3-3/8”6 3/22/12 BEL 58A 5119 5133 2383 2393 14 3-3/8”4 10/18/10 BEL_59 5171 5182 2422 2430 11 3-3/8”4 10/18/10 BEL 60 5224 5239 2463 2475 15 3-3/8”6 10/15/10 BEL 65 5291 5299 2515 2522 8 3-3/8”6 10/15/10 BEL 70 5317 5323 2536 2541 6 3-3/8”6 10/13/10 BEL 72 5370 5379 2578 2585 9 3-3/8”6 10/13/10 BEL 82 5582 5593 2746 2755 11 3-3/8”4 10/11/10 BEL 91A 5762 5773 2889 2897 11 2-7/8”6 11/17/20 BEL 92-2 5830 5839 2942 2950 9 3-3/8”4 10/11/10 BEL 93 5913 5930 3008 3022 17 2-7/8”11/15/20 BEL 100 6236 6242 3263 3268 6 3-3/8”4 10/9/10 BEL 100 6251 6258 3275 3281 7 3-3/8”4 10/9/10 BEL 115 6405 6420 3397 3408 15 3-3/8”4 10/9/10 OPEN HOLE / CEMENT DETAIL 9-5/8"12-1/4" hole Cmt w/ 282 bbls of 11.8 ppg Type-1 cmt. 95 bbls to surface 4-1/2"8-1/2" hole Cmt w/ 325 bbls of 14 ppg. 60 bbls circ’d to surface. Did not bump plug.Liner edged out on coal at 6579’ MD, and couldn’t make it to TD. Cemented in place there. INCLINATION DETAIL Hold: 80º from 2,400' - 3,700' MD Final angle: 38º at 6,494' MD (PBTD) MISC. INFORMATION Marker Joints: 4,778 & 6,358’ _____________________________________________________________________________________ Updated by CRR 10-07-21 PROPOSED SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Well: Paxton 4 API #50-133-20589-00-00 PTD: 210-064 RKB=21’ AGL OPEN HOLE / CEMENT DETAIL 9-5/8"12-1/4" hole Cmt w/ 282 bbls of 11.8 ppg Type-1 cmt. 95 bbls to surface 4-1/2"8-1/2" hole Cmt w/ 325 bbls of 14 ppg. 60 bbls circ’d to surface. Did not bump plug.Liner edged out on coal at 6579’ MD, and couldn’t make it to TD. Cemented in place there. INCLINATION DETAIL Sail: 80º from 2,400' - 3,700' MD Final angle: 38º at 6,494' MD (PBTD) MISC. INFORMATION Marker Joints: 4,778 & 6,358’ RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-65 / PE N/A Surf 117' 9-5/8"Surface 40# / L-80 / Buttress 8.835 Surf 2,494' 4-1/2"Production 12.6# / L-80 / Hydrill 563 3.958 1,905’6,579' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / IBT 3.958 Surf 1,954’ JEWELRY DETAIL No Depth ID Item 1 1,505’Chemical Injection Mandrel 2 >3.80”ZXP LTP 3 1,923’>3.80 4-1/2” Liner hanger 4 1,954’>3.80 4-1/2” seal assembly stung into ZXP LTP. (7’ swallowed) PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD) Btm (TVD)Length Size SPF Perf Date BEL 37 3948 3966 1697 1704 18 2-7/8”6 11/17/20 BEL 41 4146 4166 1777 1787 20 2”3 1/19/20 BEL 53 4826 4836 2177 2184 10 3-3/8”6 3/22/12 BEL 58A 5119 5133 2383 2393 14 3-3/8”4 10/18/10 BEL_59 5171 5182 2422 2430 11 3-3/8”4 10/18/10 BEL 60 5224 5239 2463 2475 15 3-3/8”6 10/15/10 BEL 65 5291 5299 2515 2522 8 3-3/8”6 10/15/10 BEL 70 5317 5323 2536 2541 6 3-3/8”6 10/13/10 BEL 72 5370 5379 2578 2585 9 3-3/8”6 10/13/10 BEL 82 5582 5593 2746 2755 11 3-3/8”4 10/11/10 BEL 91A 5762 5773 2889 2897 11 2-7/8”6 11/17/20 BEL 92-2 5830 5839 2942 2950 9 3-3/8”4 10/11/10 BEL 93 5913 5930 3008 3022 17 2-7/8”11/15/20 BEL 100 6236 6242 3263 3268 6 3-3/8”4 10/9/10 BEL 100 6251 6258 3275 3281 7 3-3/8”4 10/9/10 BEL 115 6405 6420 3397 3408 15 3-3/8”4 10/9/10 Capillary String (3/8”) To be Installed Top Bottom MD 0’ ±3,900’ MD 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: 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 6953 feet N/A feet true vertical 3831 feet N/A feet Effective Depth measured 6505 feet 1,142 feet true vertical 3476 feet 1,005 feet 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 1,955' MD 1,314' TVD Packers and SSSV (type, measured and true vertical depth)ZXP Liner Top Pkr; N/A 1,142'MD 1,005'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 WINJ WAG 1,435 Water-Bbl MD 117' 2,494' 30 Oil-Bbl measured true vertical Packer 4-1/2"6,947'3,826' measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik / Beluga-Tyonek GasN/A measured TVD Tubing Pressure 790 Ninilchik Unit Paxton 4 N/A ADL0384372/FEE-CIRI Plugs Junk STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 210-064 50-133-20589-00-00 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. 320-431 100 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 2,856 0 Representative Daily Average Production or Injection Data 96' 2,473' 5,042' Conductor Surface Intermediate Production 7,500psi Casing Structural 20" 9-5/8" Length 6,870psi Collapse 4,750psi jake.flora@hilcorp.com Senior Engineer:Senior Res. Engineer: Burst 8,430psi 117' 1,417' 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 11:36 am, Nov 30, 2020 gg Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.11.30 10:46:44 -09'00' Taylor Wellman Perforate RBDMS HEW 11/30/2020 SFD 11/30/2020 SFD 11/30/2020 6,579'3,505' DSR-11/30/2020gls 12/8/20 Rig Start Date End Date 10/24/20 11/17/20 11/14/2020 - Saturday Petrospec coiled tubing unit 131 with E-coil arrive on location. Conduct JSA and approve PTW. Remove wellhouse. Stab BOPE on top of well. Spot choke skid and return tank. Function test BOP rams. Test Accumulator system. Spot triplex and RU lines out to return tank. Test Blind/Shear rams to 250 psi low / 3,500 psi high. Test pipe/slip rams to 250 psi low/ 3,500 psi high. Test choke skid, valves at same time. State witness waived by Jim Regg. Move equipment to prep location for AK E-line arrival the next morning. 11/15/2020 - Sunday 11/16/2020 - Monday Petrospec E-coil and AK E-line arrive on location. MU lubricator and 2-7/8" x 11' perf gun. Stab onto well and PT low/high. Open well and RIH with E-Coil. Still see some restriction in tubing ~ 5,285' ctmd, Work through restriction and continue to RIH. Log up from 5,900' to 5,450'. Send correlation data to engineers to confirm depths. Confirm log is on depth. Indication of firing in wireline unit, but when coil was pulled to surface, guns were NOT fired. The detonator cord was separated from the firing head ignitor. Will re-wire and re-run gun #2. Open well and Re-run in hole with gun #2. Tag at 5,290' ctmd. PUH and try to work past obstruction, Appears to have moved uphole ~ 20'. Keep tagging at 5,272'. Try with well shut-in. Unsuccessful. Contact engineer, POOH. Laydown gun and lubricator for the night. AK E- line to load 2" gun. Install night cap on BOP's. 10/24/2020 - Saturday Petrospec E-coil and AK E-line arrive on location. Conduct JSA and approve PTW. MU lubricator below injector and MU gun #1 (2-7/8" x 17') and stab onto the well. Pressure test lubricator and stripper to 250 psi low / 3,500 psi high. Open well and RIH. AK E-line is hooked into E-coil depth encoder and reading correctly. AK E-line lost electrical signal from cable head at ~ 1,250'. POOH and found that E-coil cable had pulled out of weak point of cable head from not enough cable slack in coil. Trim coil to have more E-coil cable available. MU new weak point/cable head. Test and RIH again with Gun #1. RIH with E-coil and tag at 5,285' ctmd. Have ~ 5K overpull. PU and try passing again. Worked past obstruction and continue to RIH. RIH to 6,000' and log up to 5,490' at 50 ft/min. Send correlation data to Engineers to verify on depth. Make depth shifts per Engineers and position gun at perf interval. Perforate 5,913' - 5,930' MD with 2- 7/8" x 17', 6 spf, perf gun. Initial WHP = 77 psi. 5 min pressure = 80 psi. 10 minute pressure = 84 psi. 15 minute pressure = 85 psi. POOH with perf gun. Coil at surface. Confirm all shots fired. Laydown equipment for the night. Install night cap on top of BOPE. PTW and JSA. Spot equipment and rig up lubricator. PT to 250 psi low and 3,500 psi high. RIH w/WellTec tractor and GPT and tie into the OHL. Had to start tractoring at 1,900' and stopped at 4,050'. RIH to 5,240' and sat down. Pulled 500 lbs over tool weight. Tried 3 or 4 more times but wouldn't go and pulled 200 lbs over tool weight. Called town and discussed. Decision made to pull out of hole and check about waiting 1-2 days with Pax 1 shut in and doing Pax 1 work mon or Tuesday. Also checked the availability of a smaller tractor with using smaller guns. WellTec has the smaller tractor here that is going to Steelhead tomorrow. Said not problem with the smaller tractor after the Steelhead job. Rig down lubricator and tractor. Secure well. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 4 50-133-20589-00 210-064 Missrun E Coil PetroSpec Eline tractor Gun no1 Rig Start Date End Date 10/24/20 11/17/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 4 50-133-20589-00 210-064 11/17/2020 - Tuesday Petrospec E-coil and AK E-line arrive location and RU. MU lubricator and 2" x 11', 3 spf, perf gun. PT lubricator low/high. Open well and RIH. Lost communication with downhole tools at 1,800'. Test at surface and confirm short is downhole. POOH to troubleshoot. Found that E-coil had pulled out of rope socket. Cut back coil to expose more cable and re-head. Stab back on well and RIH. RIH and did not see any weight fluctuations while passing area of restriction previous day at 5,272'. RIH to 5,900' and log up to 5,450'. Send correlation data to engineers. Confirm log is on depth. Perforate 5,762 - 5,773' MD with 2" x 11' gun. POOH. Gun at surface, confirm shots fired. MU 2-7/8" x 18', 6 spf, gun. RIH with gun #3. Log from 4,100' to 3,750'. Send correlation data to engineers to confirm log on depth. Log is 3' shallow, shift and place perf gun at interval 3,948 - 3,966'. Perforate 3,948 - 3,966'. Initial pressure = 94 psi. 5 min press = 178 psi (choked back), opening choke 10 min = 120 psi (full open choke), 15 min press = 117 psi (full open choke). POOH. Coil at surface. Shots fired. Laydown gun and lubricator sections. Install night cap on top of BOP's. Will come back tomorrow morning to finish RD. Gun no 2 Gun no. 3 E-coil _____________________________________________________________________________________ Updated by DMA 11-30-20 SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Unit Well: Paxton 4 API #50-133-20589-00-00 PTD: 210-064 Initially Completed: 6/24/10 RKB=21’ AGL RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-65 / PE N/A Surf 117' 9-5/8" Surface 40# / L-80 / Buttress 8.835 Surf 2,494' 4-1/2" Production 12.6# / L-80 / Hydrill 563 3.958 1,905’ 6,579' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / IBT 3.958 Surf 1,954’ JEWELRY DETAIL No Depth ID Item 1 1,505’ Chemical Injection Mandrel 2 >3.80” ZXP LTP 3 1,923’ >3.80 4-1/2” Liner hanger 4 1,954’ >3.80 4-1/2” seal assembly stung into ZXP LTP. (7’ swallowed) PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) Length Size SPF Perf Date BEL 37 3948 3966 1697 1704 18 2-7/8” 6 11/17/20 BEL 41 4146 4166 1777 1787 20 2” 3 1/19/20 BEL 53 4826 4836 2177 2184 10 3-3/8” 6 3/22/12 BEL 58A 5119 5133 2383 2393 14 3-3/8” 4 10/18/10 BEL_59 5171 5182 2422 2430 11 3-3/8” 4 10/18/10 BEL 60 5224 5239 2463 2475 15 3-3/8” 6 10/15/10 BEL 65 5291 5299 2515 2522 8 3-3/8” 6 10/15/10 BEL 70 5317 5323 2536 2541 6 3-3/8” 6 10/13/10 BEL 72 5370 5379 2578 2585 9 3-3/8” 6 10/13/10 BEL 82 5582 5593 2746 2755 11 3-3/8” 4 10/11/10 BEL 91A 5762 5773 2889 2897 11 2-7/8” 6 11/17/20 BEL 92-2 5830 5839 2942 2950 9 3-3/8” 4 10/11/10 BEL 93 5913 5930 3008 3022 17 2-7/8” 11/15/20 BEL 100 6236 6242 3263 3268 6 3-3/8” 4 10/9/10 BEL 100 6251 6258 3275 3281 7 3-3/8” 4 10/9/10 BEL 115 6405 6420 3397 3408 15 3-3/8” 4 10/9/10 OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole Cmt w/ 282 bbls of 11.8 ppg Type-1 cmt. 95 bbls to surface 4-1/2" 8-1/2" hole Cmt w/ 325 bbls of 14 ppg. 60 bbls circ’d to surface. Did not bump plug. Liner edged out on coal at 6579’ MD, and couldn’t make it to TD. Cemented in place there. INCLINATION DETAIL Hold: 80º from 2,400' - 3,700' MD Final angle: 38º at 6,494' MD (PBTD) MISC. INFORMATION Marker Joints: 4,778 & 6,358’ SFD 11/30/2020 BEL 37 3948 3966 1697 1704 18 2-7/8”6 11/17/20 173022 300859305913BEL 93 2-7/8”11/15/20 coal at 6579’ MD, and couldn’t make it to TD. Cemented in place there. Liner edged out on BEL 91A 5762 5773 2889 2897 11 2-7/8”6 11/17/20 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: ____Patch______ 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): 6,953'none Casing Collapse Structural Conductor Surface 4,750psi Intermediate Production 7,500psi Liner Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments:Proposal Summary Wellbore schematic 13.Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Ryan Rupert Operations Manager Contact Email: Contact Phone: 777-8503 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 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. Authorized Signature: October 24, 2020 4-1/2" 6,579' Perforation Depth MD (ft): See Attached Schematic 4,674'3,535'4-1/2" 20" 9-5/8" 117' 2,494'6,870psi 117' 1,417' 117' 2,494' 12.6# / L-80 TVD Burst 1954' 8,430psi MDLengthSize CO 701C Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0384372/FEE-CIRI 210-064 50-133-20589-00-00 Paxton-04 Ninilchik / Beluga-Tyonek Gas COMMISSION USE ONLY Authorized Name: Tubing Grade:Tubing MD (ft): See Attached Schematic ryan.rupert@hilcorp.com 3,831'6,505'3,476'1195 psi none ZXP Liner Top Pkr; N/A 1923' MD (1307' TVD); n/a Perforation Depth TVD (ft):Tubing Size: 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 6:02 pm, Oct 11, 2020 320-431 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.10.09 10:06:26 -08'00' Taylor Wellman * 3500 psi BOPE test (Petrospec CTU) _Patch_ SFD 10/12/2020 GAS DSR-10/12/2020 X gls 10/12/20 10-404 contingent on water Perforate CTU Comm 10/13/2020 dts 10/12/2020 JLC 10/13/2020 RBDMS HEW 11/12/2020 Well Prognosis Well: Pax-04 Date: 10/7/2020 Well Name:Pax-04 API Number:50-133-20589-00-00 Current Status:Online Gas Producer Leg:N/A Estimated Start Date:10/24/20 Rig:CT Reg. Approval Req’d?Yes Date Reg. Approval Rec’vd: Regulatory Contact:Donna Ambruz 777-8305 Permit to Drill Number:210-064 First Call Engineer:Ryan Rupert (907) 777-8503 (O)(907) 301-1736 (C) Second Call Engineer:Ted Kramer (907) 777-8420 (O)(985) 867-0665 (C) Maximum Expected BHP:~ 1535 psi @ 3,408’ TVD (Based on a 0.45 psi/ft gradient to deepest open perfs) Max. Potential Surface Pressure:~ 1195 psi Using Max BHP minus 0.1 psi/ft. gas gradient to surface). Well Summary Paxton-04 was a 2010 new drill. It came on at ~3MM andhas declined very slowly since. Perfs in 2012 and 2020 increased rate each time by >1MM. The well currently flows at ~1.5MM, and no waterat 80psi FTP. In February of 2017 the rate fell below 1.5MM at 110 psi FTP, and the well began to slug water from 0-50 bwpd. A cap string was installed in February-2018 and smoothed the well out 1.3MM and 20 bwpd. Water production seems to have gone away after the 1/19/20 adperfs. The objective of this intervention is to add perfs to increase rate, while preserving the existing rate. Notes Regarding Wellbore Condition x Min ID = 3.80+” (Mill out run with CT 10/6/10) x Deviation: o Max = 82 deg at 2450’ MD o >70 deg from 2400 – 3700’ MD o Inclination through proposed perfs: 38 deg x Drift/tag history: o 1/19/20: 20’ perfs added via Petrospec e-coil in BEL-41 Gas/fluid mix found at 4270’ (well was flowing) 2-7/8” x 20’ gun ran to 4360’ MD (no tag, just stopped there) Shot well flowing with estimated 700psi underbalance No hangups/issues noted along way o 2/15/17: Reconfigured EL tractor PPROF assembly made it down to 6420’ MD (appears to not have tried tractoring any further, just couldn’t fall any deeper) Hung up at 5291, 5293, 5295’ MD Was able to get through with different running speeds each time o 2/10/17: EL tractor PPROF assembly couldn’t make it through 4-1/2” LTP / seal area at ~1950’ MD o 10/18/10: When shooting the BEL-58A (5119’-5133’ MD) guns got stuck, ultimately pulled free o 10/7/10: EL tractor ran CBL from PBTD to surface. Found new PBTD @ 6505’ MD o 10/6/10: CT motor/mill @ 3.80” Had constant motor work through the LTP area from 1945’ – 1975’ CTMD. Milled out a bit of the wiper plugs and shoe track to 6505’ MD ‘Friction’d out” at that depth The objective of this intervention is to add perfs to increase rate, while preserving the existing rate. Well Prognosis Well: Pax-04 Date: 10/7/2020 Risks Risk Mitigation / Contingency Shooting while flowing Expect up to 1200 psi underbalance. Make sure perf BHA is slick, and move gun immediately after firing. Can pinch well back a bit at surface, if necessary. CT string in well will provide a choking effect also (calibrate to GPT data obtained earlier) EL issues passing LTP historically Take care / slow down when passing through LTP area from 1900-1975’ MD. e-Coil Procedure: 1. MIRU Coiled Tubing Unit 2. PT BOP equipment to 250 psi Low / 3,500 psi High. (Notify AOGCC 24 hrs in advance on BOP test.) 3. RU E-Line Data Acquisition Unit. 4. RIH with GPT and locate fluid level while well is flowing. Continue downhole and lightly tag PBTD. POOH 5. RU perf guns regardless of FL / fill tag (just want as a baseline). 2-3/4” – 3-3/8” guns likely 4-6 spf 6. RIH and perforate the following intervals bottom to top: Sand Top (MD)Btm (MD)Top (TVD)Btm (TVD)FT Expected BHP BEL-37 ±3,947’±3,967’±1,697’±1,704’20’765psi BEL_91A ±5,761'±5,776'±2,888'±2,900'15'1308psi BEL_93 ±5,912'±5,930'±3,007'±3,022'18'1357psi a. Shoot perfs while well is flowing b. Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. c.Use Gamma/CCL to correlate. d. Spacing allowance is based on CO 701C. Proposed intervals are in the Beluga/Tyonek Gas Pool. e. Record initial and 5/10/15 minute tubing pressures after firing f. Consult with RE/Geo between each perf interval: i. Anthony McConkey: RE - 529-6199 ii. Matthew Petrowsky: Geo – 814-421-6753 7. Once sufficient production has been added per RE/Geo, RD E-Line Unit and Coiled Tubing Unit. 8. CONTINGENT: If a zone is shown to make undesirable sand/water, set patch for shut-off a. MU 4-1/2” patch per vendor recommendation b. RIH and set over identified perf interval 9. Turn well over to production. Attachments: 1. Actual Schematic 2. Proposed Schematic ) CONTINGENT: If a zone is shown to make undesirable sand/water, set patch for shut-off a. MU 4-1/2” patch per vendor recommendation b. RIH and set over identified perf interval Notify Inspector to witness CT BOPE Test (likely Petrospec CTU _____________________________________________________________________________________ Sec. 13, T1S, R14W, S.M API: 50-133-20589-00-00 Revised By: CRR 10-05-2020 SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Field Well #: PAX-04 Initially Completed: 6/24/10 PTD: 210-064 RKB=21’ AGL RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-65 / PE N/A Surf 117' 9-5/8" Surface 40# / L-80 / Buttress 8.835 Surf 2,494' 4-1/2" Production 12.6# / L-80 / Hydrill 563 3.958 1,905’ 6,579' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / IBT 3.958 Surf 1,954’ JEWELRY DETAIL No Depth ID Length Item 1 1,505’ Chemical Injection Mandrel 2 >3.80” ZXP LTP 3 1,923’ >3.80 4-1/2” Liner hanger 4 1,954’ >3.80 10’ 4-1/2” seal assembly stung into ZXP LTP. (7’ swallowed) PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) Length Size SPF Perf Date BEL_41 4146 4166 1777 1787 20 6 1/19/20 BEL_53 4826 4836 2177 2184 10 3-3/8” 6 3/22/12 BEL_58A 5119 5133 2383 2393 14 3-3/8” 4 10/18/10 BEL_59 5171 5182 2422 2430 11 3-3/8” 4 10/18/10 BEL_60 5224 5239 2463 2475 15 3-3/8” 6 10/15/10 BEL_65 5291 5299 2515 2522 8 3-3/8” 6 10/15/10 BEL_70 5317 5323 2536 2541 6 3-3/8” 6 10/13/10 BEL-72 5370 5379 2578 2585 9 3-3/8” 6 10/13/10 BEL_82 5582 5593 2746 2755 11 3-3/8” 4 10/11/10 BEL_92-2 5830 5839 2942 2950 9 3-3/8” 4 10/11/10 BEL_100 6236 6242 3263 3268 6 3-3/8” 4 10/9/10 BEL_100 6251 6258 3275 3281 7 3-3/8” 4 10/9/10 BEL_115 6405 6420 3397 3408 15 3-3/8” 4 10/9/10 OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole Cmt w/ 282 bbls of 11.8 ppg Type-1 cmt. 95 bbls to surface 4-1/2" 8-1/2" hole Cmt w/ 325 bbls of 14 ppg. 60 bbls circ’d to surface. Did not bump plug. Liner edged out on coal at 6579’ MD, and couldn’t make it to TD. Cemented in place there. INCLINATION DETAIL Hold: 80º from 2,400' - 3,700' MD Final angle: 38º at 6,494' MD (PBTD) MISC. INFORMATION Marker Joints: 4,778 & 6,358’ _____________________________________________________________________________________ Sec. 13, T1S, R14W, S.M API: 50-133-20589-00-00 Revised By: CRR 10-07-2020 PROPOSED SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Field Well #: PAX-04 Initially Completed: 6/24/10 PTD: 210-064 RKB=21’ AGL RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-65 / PE N/A Surf 117' 9-5/8" Surface 40# / L-80 / Buttress 8.835 Surf 2,494' 4-1/2" Production 12.6# / L-80 / Hydrill 563 3.958 1,905’ 6,579' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / IBT 3.958 Surf 1,954’ No Depth ID Item 1 1,505’ Chemical Injection Mandrel 2 >3.80” ZXP LTP 3 1,923’ >3.80 4-1/2” Liner hanger 4 1,954’ >3.80 4-1/2” seal assembly stung into ZXP LTP. (7’ swallowed) PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) Length Size SPF Perf Date BEL-37 ±3947’ ±3967’ ±1697’ ±1704’ 20’ Proposed BEL_41 4146 4166 1777 1787 20 2/7/8” 6 1/19/20 BEL_53 4826 4836 2177 2184 10 3-3/8” 6 3/22/12 BEL_58A 5119 5133 2383 2393 14 3-3/8” 4 10/18/10 BEL_59 5171 5182 2422 2430 11 3-3/8” 4 10/18/10 BEL_60 5224 5239 2463 2475 15 3-3/8” 6 10/15/10 BEL_65 5291 5299 2515 2522 8 3-3/8” 6 10/15/10 BEL_70 5317 5323 2536 2541 6 3-3/8” 6 10/13/10 BEL-72 5370 5379 2578 2585 9 3-3/8” 6 10/13/10 BEL_82 5582 5593 2746 2755 11 3-3/8” 4 10/11/10 BEL 91A ±5761 ±5776 ±2888 ±2900 15 Proposed BEL_92-2 5830 5839 2942 2950 9 3-3/8” 4 10/11/10 BEL 93 ±5912 ±5930 ±3007 ±3022 18 Proposed BEL_100 6236 6242 3263 3268 6 3-3/8” 4 10/9/10 BEL_100 6251 6258 3275 3281 7 3-3/8” 4 10/9/10 BEL_115 6405 6420 3397 3408 15 3-3/8” 4 10/9/10 OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole Cmt w/ 282 bbls of 11.8 ppg Type-1 cmt. 95 bbls to surface 4-1/2" 8-1/2" hole Cmt w/ 325 bbls of 14 ppg. 60 bbls circ’d to surface. Did not bump plug. Liner edged out on coal at 6579’ MD, and couldn’t make it to TD. Cemented in place there. INCLINATION DETAIL Hold: 80º from 2,400' - 3,700' MD Final angle: 38º at 6,494' MD (PBTD) MISC. INFORMATION Marker Joints: 4,778 & 6,358’ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS RECEIVED JAN 2 4 2020 1. Operations Abandon LJ Plug Perforations LJ Fracture Stimulate 0 Pull Tubing down Li Performed: Suspend ❑ Perforate ❑� Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrill ❑ erforate New Pool ❑ Repair Well ❑ Re-enter Susp Well ❑ Other: ALPE-Coil Q 2. Operator Hilcorp Alaska, LLC 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development ❑✓ Stratigraphic❑ Exploratory ❑ Service ❑ 210-064 3. Address: 3800 Centerpoint Dr, Suite 1400 Anchorage, 6. API Number: AK 99503 50-133-20589-00-00 7. Property Designation (Lease Number): 8. Well Name and Number: ADL0384372/FEE-CIRI Ninilchik Unit Paxton 4 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field/Pool(s): N/A Ninilchik / Beluga-Tyonek Gas 11. Present Well Condition Summary: Total Depth measured 6953 feet Plugs measured N/A feet true vertical 3831 feet Junk measured N/A feet Effective Depth measured 6505 feet Packer measured 1,142 feet true vertical 3476 feet true vertical 1,005 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 96' 20" 117' 117' Surface 2,473' 9-5/8" 2,494' 1,417' 6,870psi 4,750psi Intermediate Production 5,042' 4-1/2" 6,947' 3,826' 8,430psi 7,500psi Liner Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth) 4-12/" 12.6# / L-80 1,955' MD 1,314' TVD Packers and SSSV (type, measured and true vertical depth) ZXP Liner Top Pkr; N/A 1,142'MD 1,005'TVD N/A; N/A 12. Stimulation or cement squeeze summary: N/A Intervals treated (measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil -Bbl Gas-Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 1128 24 0 80 Subsequent to operation: 0 3475 15 0 246 14. Attachments (required per20 AAC 25.070, 25.071, a 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 WDSPL ❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP ❑ SPLUG ❑ 17. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 320-015 Authorized Name: Bo York 777-8345 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: tkramerrrDhilcor Mn Authorized Signature: 1 Date: 1ti20 Contact Phone: 777-8420 Form 10-404 Revised 4/2017 /loov RBDMS-46/ IAN 272020 Submit Original Only Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Numher Start Date End Date Paxton 4 1 Cap String 1 50-133-20589-00 210-064 1/18/20 1 1/20/20 Daily Operations: - - 01/18/2020 -Saturday Fire up HAK cap string truck. PTW/JSA. Warm up Cruz crane. MIRU HAK Dyna coil/Cap string truck. Remove Swanson River cap string spool from truck. Load active 3/8" cap string from Pax 4 into spooler. Function test cap string truck. Grease and lubricate injector head chains. POOH with 4,800' of 3/8" SS capillary tubing. Close swab valve. Well still flowing. Rig off well with injector head. Break down BHA (nozzle, centralizer). Set injector head on back deck. remove 3/8" string and secure to drum. Leave Pax 4 string on truck. Could not confirm it string was to be ran after perforating. Park truck on edge of pad. (Petrospec crew and equipment arrived on location at 12:45 pm.) MIRU Petrospec CT unit 181 dressed with 1.75" x .156 wall E -coil. Install 4" 5M combi BOPE stack on wellhead. 24 hr BOPE test witness notification sent 1/17/2020 @ 13:08. Witness waived by Jim Regg 1/17/2020 @ 13:28. Fluid pack lines and BOPE stack with 60/40 methanol water. Start BOPE test. Test all rams and valves 250/3500 psi. Perform BOPE draw down test. BOPE test complete. Location walk around compete. Well site secure. SDFN. 01/19/2020 -Sunday PTW, JSA with Hilcorp, Cruz Construction, Petrospec and AK -E line. Fire equipment -11 ambient temp. Pick injector head and 30' of lubricator. Test E -coil with pollard GPT tools. Results showing short. Break off shear sub. E -line cable separated from rope socket. Only 2.5" of E line sticking out of CT. Attempt a fix. E -coil testing is good. Make up AK- Eline 2.0" GPT gamma, pressure, temperature logging tool. Stab on well. PT stack 250/3500 psi. Good PT. Open well. RIH. @ 4700' tool string shorted out. Tied into Pax 4 mudd log. Logged enough data prior to tool shorting out. Started seeing gas/fluid mix at 4270. Pressure indicated fluid level was increasing until tool shorted out at 4700'. POOH to surface. Tagged up. Pop off well. Break down GPT. Remove coil shear sub. E -line has separated from coil. Shear screws were intact and in good shape. An Estimated 3 gallons of produced water drained from coil when shear sub BHA was removed. Fluid may have entered the inside of the CT on previous operation. Also possible condensation gathered in coil while moved into shop to fix injector head brakes causing ice plug in coil. Cut 8' of coil and expose new E -line. Re dress Coil connector. Make up new E -line rope socket. Test connection. Good test. Call out Udelhoven welder to weld coil connector in the AM. Stack down lubricator and injector head. Install night cap on BOPE. Location walk around complete. SDFN. Per s4,'a Hilcorp Alaska, LLC Well Operations Summary Well Name Rig IAPI Number Well Permit Number Start Date End Date Paxton 4 Cap String 1 50-133-20589-00 1 210-064 1/18/20 1 1/20/20 Daily Operations: 01/20/2020 - Monday Flre equipment. Arrive at Susan Dionne and fill out PTW. PTW/JSA. Pick injector head. Stab 35' of lubricator. Test E -coil with AK E -line acquisition. Good test. (Re head with new rope socket made day prior). Wait on welder. Not able to get welding equipment ready for TIG wedling the CT and connector. Welder on location performed a stick weld on CTU/Coil connector. Make up AK-Eline CCL/Gamma tools. Test electrical line connection. Results indicated a short. Inspect and test tools. Test back to E -coil reel. Electrical connection at CTU reel bulkhead caused the short. Replace steel spacer ring inside collector body. Test is good. Make up 2 7/8'x 20' gun. Stab on well. PT stack 250/3,500 psi. Bleed down. Open swab and RIH. Pull logging pass from 4,360'-4,000'. Send correlation log to town. on depth. Park CCL at 4,139.5'. CCL to top shot 6.5'. 2-7/8" x 20'. Loaded with 15g Razor chares 6 spf, 60° phasing. Tubing pressure 85 psi flowing at 333K. Shoot from 4,146'-4,166'. Felt guns blast through T. POOH to surface. Monitor well. Rate increasing 834k, 1.1 MCF/D , 2.7. Compressor shut down and closed in well. WHP increased to 500 psi. Compressor back online. Choke at 1/2 286 psi @ 2.5 MCFD. Tagged up at surface with CT. Rig back CT. Rig down AK-Eline. Install night cap on well. Transmitters on flow line iced up. Install tarp and heat trunk. Well secure. SDFN. ff Hitcorp Alaska 210.064 50-133-20589.00-00 ADL - 384372 n: 171' (21'AGL) 60° 05'51.07" N 1510 35'41.25" W 5:30hrs 6/8/10 6119/10 d: 18:00hrs 6124110 Chemical Injection Manddd 0— 1,505' MD 4-112" ZXP Liner Top Packer (1,142'4,955' MD) Liner Hanger Baker 9-518' by 4-112 " (1,925'-1,965 MD) KOP @ 160' MD/TVD Build 3.6°1100" from 160'- 2,400' MD Hold 80° from 2.400'- 3,700' MD Drop 2.7°1100' to 5,250' MD Final angle 37.6° at 6,494' MD @ PBTD Azimuth: 32.4 deg. Marker Joints (MD): @ 4,778- @ 6,358' Tag Bottom @ 5124'3/21112 PAX -4 Paxton Pad 678' FNL, 2,940' FEL Sec. 13, T1S, R14W, S.M. SCHEMATIC Conductor 20" X-65 129.45 ppf PE 0.625 Wall Thickness Tom Bottom MD 0' 117' ND 0' 117' Surface Caslna 9-5/8" L-80 40 ppf Butt Toter Bottom MD 0' 2,494' TVD 0' 1,417" 12-1/4" hole Cmt w/601 sks (282 bbls) of 11.8 ppg Type -1 cmt. 202sks (95 bbls) to surface Tie -Back Tubino 4-1/2" L-80 12.6 ppf IBT Tom, Bottom MD 0' 1,955' TVD 0' 1,314' Production Liner MD 4-1/2" L-80 12.6 ppf Hydril 563 Too Bottom MD 1,905' 6,947' TVD 1,302' 3,826' 8-1/2" hole Cmt w/ 1,086 sks (325 bbls) of 14 ppg Type -1 cement. —200sks (60 bbls) to surface. Did not bump plug. 2177-2184' B2 MD ND Ft Gun Typa Date BEL -41 4,146'-0,166' 1,777'-1,787' 20 6spf Razor 1/19/20 B2 48264836' 2177-2184' 10 6spf Super Hero 3/22/12 B2 51.19-5133' 2383-2393' 14 4spf Connex 10/18/10 B2 5171-5182' 2422-2430' 11 4spf Connex 10/18/10 B2 5224-5239' 2463-2475' 15 6spf Owen's 10/15/10 02 5291-5299' 2515-2522' 8 6spf Owen's 10/15/10 B2 5317-5323' 2536-2541' 6 6spf Owen's 10/13/10 B2 5370-5379' 2578-2585' 9 6spf Owen's 10/13/10 B2 5582-5593 2746-2755' 11 4spf Connex 10/11/10 B3 5830-5839' 2942-2950' 9 4spf Connex 10/11/10 B3 6236-6242' 3263-3268' 6 4spf Connex 10/09/10 83 6251-6258' 3275-3281' 7 4spf Connex 10/09/10 B3 6405-6420' 3397-3408' 15 4spf Connex 10/09/10 TD PBTD est. 6,953' MD 6,505' MD 3,831' ND 3,476' ND Well Name & Number: Paxton #4 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska C untry:1 USA Perforations (MD): Perf (ND): Angle @ KOP & Depth: Angle @ Perfs: Date Completed: Ground Level: 150' (AMSC) RKB: 21' (AGC) Revised by: Donna Ambruz Revision Date: 01-23.2020 r Schwartz, Guy L (CED) From: Schwartz, Guy L (CED) Sent: Friday, January 17, 2020 10:04 AM To: Christina Twogood - (C) Cc: Ted Kramer; Bo York; Donna Ambruz Subject: RE: Paxton. 4 Sundry - PTC 210-064, Sundry 320-015 Christina, AOGCC staff has reviewed your request to add the lower BEL -41 perfs. You have verbal approval to proceed with these perforations at 4140-4185 ft MD. A sundry will not be needed but update the MOC form with the approved changes. Regards, Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office 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 on 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 Guy Schwartz at (907-793-1226) or (Guv schwadzCwalaska aov). From: Christina Twogood - (C) <ctwogood@hilcorp.com> Sent: Wednesday, January 15, 2020 4:02 PM To: Schwartz, Guy L (CED) <guy.schwartz@alaska.gov> Cc: Ted Kramer <tkramer@hilcorp.com>; Bo York <byork@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com> Subject: Paxton 4 Sundry - PTD 210-064, Sundry 320-015 Guy, Based on the success of the Kalotsa 4 pert add, Hilcorp would like to preserve the sands in the Approved Sundry at this time and instead shoot a lower interval that better aligns with our current production needs. Hilcorp requests approval to add the following perforation interval (highlighted) to the Approved Sundry using the MOC process: Zone Sand Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Beluga BEL -10 +2,770' +2,900' +1,464' +1,488' 130 Beluga BEL -13 +2,964' +3,080' +1,499' +1,520' 116 Beluga BEL -16 +3,240' +3,340' +1,547' +1,566' 100 Beluga BEL -20 +3,489' +3,540' +1,591' +1,601' 51 Beluga BEL -41 +4,140' +4,185' +1,774' +1,796' 45 All operational details remain the same as in the approved sundry. Approved Sundry, revised procedure and revised proposed schematic have been attached for your reference. Thank you, Christina Twogood Operations Engineer Kenai Asset Team, Hilcorp Alaska 3800 Centerpoint Dr., Anchorage, AK 99503 (w)907-777-8443 (c) 907-378-7323 The information contained in this e-mail message is confidential information intended only for the use of the recipient(s) named above. In addition, this communication may be legally privileged. If the reader of this e-mail is not an intended recipient, you have received this e-mail in error and any review, dissemination, distribution or copying is strictly prohibited. If you have received this e-mail in error, please notify the sender immediately by return e-mail and permanently delete the copy you received. 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. I n2 W N 0 m 4h,W O O W N N O tt co O CD .A O A N W O fco Co En O O O W N 0 O O O O Cl I. 0 0 rn 0 0 W W W W W W W W W W N N hf N cG 00 -1 m w? W N O w 00 V W O O 0 0 0 0 0 0 0 0 0 0 0 0 O O 0 0 0 0 0 O O O O O O O A 0 0 w 0 THE STATE ALASKA GOVERNOR MIKE DUNLEAVY Bo York Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, Beluga/Tyonek Gas Pool, Paxton 4 Permit to Drill Number: 210-064 Sundry Number: 320-015 Dear Mr. York: 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 Enclosed is the approved application for the 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, Price DATED this \ Vday of January, 2020. RBDMS' JAN 13 2020 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25 280 JAN 10 20�0 rYp�S //r±i.� CC 1h Z o 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: e7- yL• Hilcorp Alaska, LLC Exploratory El Development R1. Stratigraphic ❑ Service ❑ 210-064 3. Address: 3800 Centerpoint Dr, Suite 1400 6. API Number: Anchorage Alaska 99503 50-133-20589-00 •-arm 7. If perforating:ciU �t cy�y✓,1V 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? „pyo Will planned perforations require a spacing exception? Yes ❑ No Q • Ninilchik Unit Paxton 4 ' 9. Property Designation (Lease Number): 10. Field/Pool(s): ' ADL0384372/FEE-CIRI Ninilchik / Beluga-Tyonek Gas 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 6,953' • 3,831' 6,505' 3,476' - 560 psi N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 96' 20" 117' 117' Surface 2,473' 9-5/8" 2,494' 1,417' 6,870psi 4,750psi Intermediate Production 5,042' 4-1/2" 6,947' 3,826' 8,430psi 7,500psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic 4-1/2" 12.6# / L-80 1,955' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): ZXP Liner Top Pkr; N/A 1,142'MD/1,005'TVD; N/A, N/A 12. Attachments: Proposal Summary .r Wellbore schematic r 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ Development ❑Q Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: January 14th, 2020 OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ GAS ❑✓ WAG ❑ GSTOR ❑ SPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Bo York 777-8345 Contact Name: Christina Twogood Authorized Title: Operations Manager Contact Email: CtwO ood hilcor .GOBI Contact Phone: 777-8443 Authorized Signature. Date: 1 b SG.,.� Z 01 IV COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 4o v Plug Integrity ❑ BOP Test PI Mechanical Integrity Test ❑ Location Clearance E Other. f- 'BDMS � _IAN 13 2020 Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exce n Required? Yes No - Subsequent Form Required: /[)- L// Q L, ' APPROVED BY \ O -710 Approved by: COMMISSIONER THE COMMISSION Date: V V I G NAL s ubmit Form and 403 evis d 4/2017 Approved application is valid for 12 months from the too a prova . Attachments in Duplicate -Of�Q71d/� 0 Flilcora Alaska, LL Well Prognosis Well: Paxton 4 Date: 1/10/2020 Well Name: Paxton 4 API Number: 50-133-20589-00-00 Current Status: Leg: N/A Estimated Start Date: January 10, 2020 Rig: Coiled Tubing Reg. Approval Req'd? Yes Date Reg. Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 210-064 First Call Engineer: Christina Twogood (907) 777-8443 (0) (907) 378-7323 (M) Second Call Engineer: Ted Kramer (907) 777-8420 (0) (985) 867-0665 (M) AFE Number: Max. Expected BHP: — 720 psi @ 1,601' TVD (Based on 0.45 psi/ft gradient) Max. Potential Surface Pressure: — 560 psi (Based on expected BHP and gas gradient to surface (0.10psi/ft)) Brief Well Summary Paxton 4 was drilled and completed in June 2010 as a grassroots well to target gas sands in the Beluga formation. In October 2010 the 132 and B3 sands were perforated in multiple intervals. In March 2012 the B2 was perforated. The purpose of this work/sundry is to perforate the BEL -10 BEL -13 BEL -16 and B-20 sands- i IJ( -- Notes Regarding Wellbore Condition • The well is currently producing approx. 1 MMSCFD. Safety Concerns • Pre -job safety meetings and tailgate safety meetings will be conducted at each appropriate phase of the procedure. • Discuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people 9` could ente • Consider tank placement based on wind direction and current weather forecast (venting nitrogen during this job) • Ensure all crews are aware of stop job authority Coiled Tubing Procedure: 1. MIRU Coiled Tubing Unit and BOP equipment. 2. RU Coiled Tubing Stripper and Lubricator. 3. PT BOPE, Stripper and Lubricator to 250 psi Low / 3,500 psi High. (Notify AOGCC 24 hrs in advance on BOP test.) �^ 4. RU E -Line Data Acquisition Unit. 5. RIH with GPT tool and find fluid level. Iff uid level is over the depth of the new perfs, discuss using nitrogen with the operations engineer. 14-42 0P5 6. If needed, RU nitrogen truck, pressure up on well and push water back into the formation. H Hilcurp Alaaka, LL 1. RU perf guns. 2. RIH and perforate the following intervals: Well Prognosis Well: Paxton 4 Date: 1/10/2020 Zone Sand Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Beluga BEL -10 +2,770' +2,900' +1,464' +1,488' 130 Beluga BEL -13 ±2,964' ±3,080' ±1,499' ±1,520' 116 Beluga BEL -16 ±3,240' ±3,340' +1,547' ±1,566' 100 Beluga BEL -20 +3,489' +3,540' +1,591' +1,601' 51 a. Well maybe shot flowing. b. Proposed perfs also shown on the proposed schematic in red font. c. Final perfs tie-in sheet will be provided in the field for exact per intervals. d. Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. e. Use Gamma/CCL to correlate. f. Proposed intervals are in the Beluga-Tyonek Gas Pool. g. Record tubing pressure before and after each perforating run. h. Record 5, 10 and 15 minutes pressures after firing guns. 3. POOH. 4. RD E -Line Unit and Coiled Tubing Unit. 5. Turn well over to production. Coiled Tubing Procedure (N2 Contingency): 1. MU standard coil reel and BHA. 2. RU N2 pumping unit. 3. Drop ball and come online with N2 and jet well dry. 4. RIH with coiled tubing and BHA and tag. 5. PU approx. 5 ft and displace well fluids with Nitrogen. 6. Once well is dry, verify desired surface pressure to leave on well with Operations Engineer (OE). 7. POOH w/ coil. LD BHA. 8. RD standard coil reel. 9. RU E -Coil reel. 10. Proceed with Coiled Tubing Procedure for perforating. E -line Procedure (Contingency): 1. If these zones produce sand and/or water and need to be isolated: 2. MIRU E -Line, PT lubricator to 250 psi Low/ 2,000 psi High. 3. RIH and set 4-1/2" Casing Patch or set CIBP above the zone and dump 25' of cement on top of the plug. Attachments: 1. Current Schematic 2. Proposed Schematic 3. Coiled Tubing BOPE Schematic 4. Standard Well Procedure — N2 Operations U Hiicorp Alaska 210.064 50-133-20589-00-00 ADL -384372 n: 171' (21' AGL) 60° 05'51.07" N 151' 35'41.25" W 5:30hm 618/10 6/19/10 d: 18:00hrs 6124110 Chemical Infection Mandri @ 1,505' MD 4-1/2" ZXP Liner Top Packer (1,142'-1,955' MD) Liner Hanger Baker 9-5/8' by 4-1/2 " (1,925'-1,965' MD) BOP @ 160 Build 3.8 lWF*om 1 D Hold 800 from 2,400'-3,700'AIID Drop 2.7°/100' to 5,250' MD Final angle 37.6° at 6,494' MD @ PBTD Azimuth: 32.4 deg. PAX -4 Paxton Pad 678' FNL, 2,940' FEL Sec. 13, T1S, R14W, S.M. 62 - TD 6,953' MD 3,831' TVD Conductor 20" X-65 129.45 ppf PE 0.625 Wall Thickness To Bottom MD 0' 117' TVD 0' 117' Surface Casing 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 2,494' TVD 0' 1,417' 12-1/4" hole Cad w/ 601 sks (282 bbls) of 11.8 ppg Type -1 cmL 202sks (95 bbls) to surface Tie -Back Tubing 4-0/2" L-80 12.6 ppf IST Top Bottom MD 0' 1,955' WD 0' 1,314- 4-112" L -80 ,314' Gun Type Marker Joints (MD): 12.6 ppf Hydril 563 @ 4,778' Bottom @ 6,358' _ WD 1,302' 3,626' Tag Bottom @ 5124'3121/12 Type -1 cement. TD 6,953' MD 3,831' TVD Conductor 20" X-65 129.45 ppf PE 0.625 Wall Thickness To Bottom MD 0' 117' TVD 0' 117' Surface Casing 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 2,494' TVD 0' 1,417' 12-1/4" hole Cad w/ 601 sks (282 bbls) of 11.8 ppg Type -1 cmL 202sks (95 bbls) to surface Tie -Back Tubing 4-0/2" L-80 12.6 ppf IST Top Bottom MD 0' 1,955' WD 0' 1,314- 4-112" L -80 ,314' Belulta Perls: Gun Type 6-1/2L-80 12.6 ppf Hydril 563 Too Bottom MD 1,905' 6,947' WD 1,302' 3,626' 8-1/2" hole Cant w/ 1,086 sks (325 bbls) of 14 ppg Type -1 cement. -200sks (60 bbls) to surface. Did not bump plug. 82 Belulta Perls: Gun Type Date MD TVD B2 4826-4836' 2177-2184' B2 5119.5133' 23832393' B2 5171-5182' 2422-2430' 82 5224-5239' 24632475' B2 5291-5299' 2515-2522' Et Gun Type Date 10 6spf Super Hero 3122112 14 4spf Connex 10/18/10 11 4spf Connex 10/18/10 15 6spf Owen's 10/15/10 8 6spf Owen's 10115/10 82 5317-5323' 25362541' 6 6spf Owen's 10/13/10 82 5370-5379' 2578.2585' 9 6spf Owen's 10/13/10 82 5582-5593 27462755' 11 4spf Connex 10/11/10 83 5830-5839' 2942-2950' 9 4spf Connex 10/11/10 B3 6236-6242' 32633268' 6 4spf Connex 10/09/10 83 6251-62W 32753281' 7 4spf Connex 10/09/10 3397-3468-4spf Connex 10/09110 PBTD esk 6,505' MD 3,476' TVD Well Name & Number: Paxton 94 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations MD): Perf (TVD): Angle @ KOP & Depth: Angle @ Perfs: Date Completed: Ground Level: 150' (AMSL) RKB: 21' AGL) Revised by: Donna Ambruz Revision Date: 07-21-17 U Hilcorp Alaska 210-064 50.133-20589-00-00 ADL - 384372 n: 171' (21' AGL) 60° 05'51.07" N 151°35'41.25" W 5:30hrs 6/8/10 6119/10 d: 18:001drs 6/24/10 Chemical lniectlon Mandrid @ 1,505' MD 4-1/2" ZXP Liner Top Packer (1,142'-1,955' MD) I Liner Hanger Baker 9-5/8' by 4-1/2 " (1,925'-1,965' MO) KOP @ 160' MDITVD Build 3.6`/100" from 160'- 2,400' MD Hold 80° from 2,400'- 3,700' MD Drop 2.7°1100' to 5,250' MD Final angle 37.6° at 6,494' MD @ PBTD Azimuth: 32.4 deg. Marker Joints (MD): @ 4,778- @ 6,358' Tag Bottom @ 5124'3121112 PAX -4 Paxton Pad 678' FNL, 2,940' FEL Sec. 13, TIS, R14W, S.M. If'/I" fo/L r 6 I I''f ` r^)> Conductor 20" X-65 129.45 ppf PE 0.625 Wall Thickness Tom Bottom MD 0' 117' TVD 0' 117' Surface Casing 98/8" L-80 40 ppf Butt TOP Bottom MD 0' 2,494' TVD 0' 1,417" 12-114" hole Cmt w/ 601 sks (282 bbls) of 11.8 ppg Type -1 cmt. 202sks (95 bbls) to surface Tie -Back Tubing 4.112" L-80 12.6 ppf IET TOP Bottom MD 0' 1,955' TVD 0' 1,314- 4.112" L-80 12.6 ppf Hydril 563 Top Bottom MD 1,905' 6,947' TVD 1,302' 3,826- 8-112" hole Cmt w/ 1,086 sks (325 bbls) of 14 ppg TypeA cement. -200sks (60 bbls) to surface. Did not bump plug. BEL -13 B2 " MD ND Ft Gun Tvoe Date BEL -10 2,770-2,900' 1,464-1,488' 130 TBD TBD BEL -13 2,964-3,080' 1,499-1,520' 116 TBD TBD BEL -16 3,240-3,340' 1,547-1,566' 100 TBD TBD BEL -20 3,489-3,540' 1,591-1,601' 51 TBD TBD B2 4826A836' 2177-2184' 10 6spf Super Hero 3/22/12 B2 5119-5133' 2383-2393' 14 4spf Connex 10/18/10 B2 5171-5182' 2422-2430' 11 4spf Connex 10/18/10 B2 5224-5239' 2463-2475' 15 6spf Owen's 10/15/10 B2 5291-5299' 2515-2522' 8 6spf Owen's 10/15/10 B2 5317-5323' 2536-2541' 6 6spf Owen's 10/13/10 B2 5370-5379' 2578-2585' 9 6spf Owen's 10/13/10 B2 5582-5593 2746-2755' 11 4spf Connex 10/11/10 B3 5830-5839' 2942-2950' 9 4spf Connex 10/11/10 B3 6236-6242' 3263-3268' 6 4spf Connex 10/09/10 B3 6251-6258' 3275-3281' 7 4spf Connex 10/09/10 B3 6405-6420' 3397-3408' 15 4spf Connex 10/09/10 TD PBTD est. 6,953' MD 6,505' MD 3,831' TVD 3,476' TVD Well Name & Number: Paxton #4 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): Pert (TVD): Angle @ KOP & Depth: Angle @ Perfs: Date Completed: Ground Level: 150' (AMSC) RKB: 21' (AGC) Revised by: Christina Twogood Revision Date: 01.10-2020 Total DPL 6351 R H'For wofk alms NOOK@ N7 ft DAL (hvbo) 150 MII Po/1.9Yow P�M/IDP Pam asb FWFWnuDIValve3. 3.L16-tX HC`WMu1hM3 IMLI K A$a Ft6x W¢m 1'130; F. WI Ah,Na:� i e3a so D. g Pss B XIMI[blk Unb Pztlenp3 11n6/t019 fit. WOKHT IIa51 Tubing XydraCo 45N Injector Head&Gooseneckmoa lm Weight-4700Ibs �— — 50OBpsl CTShlpper iso lei 5"BOWD.TI" SK LObrlcator-3ak j 1673 ,Da 11 ILK, GUNS. 359 Ib NYDMUUCUMOLIUL 10N Ih. a3/4CWIMiobhg WhD 4DO ba LOT aa13LOS — Co. NOOK WAD �._..._ _.._ 4-1/15"SKDOaI-CombIBOP(P37) 1. Comb, Blind/Shear Ram 2 1,75- a Combt Pipe(SGp Ram y °+ °---�o---- 5" SK Bowen BOK Top x 3-1(g" SK FtG Btm 835) ---- Wellhead 11 STANDARD WELL PROCEDURE Ililrnrp Alaska, LLC NITROGEN OPERATIONS 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/CO2/02 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures 02 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. 12/08/2015 FINAL 0 Page 1 of 1 Schwartz, Guy L (CED) From: Bo York <byork@hilcorp.com> Sent: Friday, January 10, 2020 11:45 AM To: Schwartz, Guy L (CED) Cc: Holly Tipton; Christina Twogood - (C); Ted Kramer Subject: Hilcorp Expedited Sundry Requests - Gas Well Perforations G uy- Three sundries are being submitted to you today (10 January) for perforations to existing Kenai gas wells. The three sundries are: • Kalotsa 4 o T65-7684'-7737' MD • Paxton 3 o BEL -10-2740'-2877' MD o BEL -13-2970'-3045' MD o BEL -16-3150'-3340' MD o BEL -20-3528'-3637' MD • Paxton 4 o BEL-10-2770'-2900'MD o BEL -13-2964'-3080' MD o BEL -16-3240'-3340' MD o BEL -20 — 3489' — 3540' M D We are asking for expedited review due to the current cold snap and market conditions. As we discussed yesterday on the phone, south central AK is pulling—340MMscf of gas right now (this is my estimate). Hilcorp in the inlet is delivering —100MMscf from our storage wells and another `110MMscf from base production. CINGSA I heard this morning is delivering 120MMscf. Hilcorp has been producing at this unusually high rate since 10 Dec when Enstar started a "test" of our deliverability. The test has officially ended but it has been more than replaced by the actual cold weather. The current cold snap is expected to continue another 10 days and our customers have already notified us they are going to be needing our current volumes through at least 20 January. Our objective with these perf adds is to protect our storage volumes as much as possible to ensure we keep them pressured up in case the cold continues or returns later in the winter. It is only 10 January and we have a lot of winter left. These perfs in these three wells are expected to bring on immediate and significant base rate which will help protect our storage volumes as well as CINGSA volumes. I appreciate any support you can provide in approving these in an expedited manner. Feel free to call to discuss further. Bo York Hilcorp Alaska LLC Kenai Operations Manager bvork@Hilcorp.com 907.777.8345 907.727.9247 cell The information contained in this e-mail message is confidential information intended only for the use of the recipient(s) named above. In addition, this Loepp, Victoria T (CED) From: Sent: To: Cc: Subject: Follow Up Flag: Flag Status: Thank you! Marti Marti Titus Staff Drilling Engineer Office: 907-265-1192 Cell: 713-494-8198 p-ro 276-664- Titus, Marti N <Marti.N.Titus@conocophillips.com> Monday, November 18, 2019 1:57 PM Schwartz, Guy L (CED) Loepp, Victoria T (CED) RE: (EXTERNAL]RE: KRU 3H-35 (PTD 210-064) Rig Change to Doyon 19 Follow up Flagged From: Schwartz, Guy L (CED) <guy.schwartz@alaska.gov> Sent: Monday, November 18, 2019 1:50 PM To: Titus, Marti N <Marti.N.Titus@conocophillips.com> Cc: Loepp, Victoria T (CED) <victoria.loepp@alaska.gov> Subject: [EXTERNAL]RE: KRU 3H-35 (PTD 210-064) Rig Change to Doyon 19 Marti, Thanks for the advance notice on the rig change. You have approval to change rigs as stated below. AOGCC has current BOPE records on file for both rigs. Please post this email approval on rig site with the PTD package. Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office 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 Guy Schwartz at (907-793-1226) or (Guv.schwartz(Palaska.aov). From: Titus, Marti N <Marti.N.Titus@conocophill ips.com> Sent: Monday, November 18, 2019 9:55 AM To: Schwartz, Guy L (CED) <guy.schwartz@alaska.eov> Cc: Loepp, Victoria T (CED) <victoria.loepp@alaska.Rov> Subject: KRU 3H-35 (PTD 210-064) Rig Change to Doyon 19 Good morning Guy, KRU 31-1-35 was originally permitted to be drilled with Doyon 142; however, COP has since decided to bring in Doyon 19 to Kuparuk to drill two wells on the 3H pad, 31-1-35 and 3H-37 (not yet permitted), with an estimated spud of January 1, 2020. We were in the same situation for KRU 2M-39 last year when the rig was changed from Doyon 142 to Doyon 19 and Victoria approved the change via email. Can you please confirm that we can do the same again for KRU 31-1-35? I've attached the email correspondence (and subsequent approval) for 2M-39 for reference. Thanks, Marti Marti Titus Staff Drilling Engineer Office: 907-265-1192 Cell: 713-494-8198 yOF TfJ • • yw\�\I�j��S THE STATE Alaska Oil and Gas ofA LA KA Conservation Commission t-__-_ 333 West Seventh Avenue � h. GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 ALAS� Fax: 907.276.7542 www.aogcc.alaska.gov Chad Helgeson Operations Manager ( to Hilcorp Alaska, LLC ® -- 3800 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, Beluga/Tyonek Gas Pool,Paxton 4 Permit to Drill Number: 210-064 Sundry Number: 318-031 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, Hollis S. French Chair DATED this day of January, 2018. EDMS L.L_ 3 - 1 2118 RECEIVED • STATE OF ALASKA .SAN L 4013 ALASKA OIL AND GAS CONSERVATION COMMISSION 0is I/ 3c)( r APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well 0 Operations shutdown❑ Suspend 0 Perforate ❑ Other Stimulate ❑ Pull Tubing El Change Approved Program El Plug for Redrill El Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing El Other: Install Cap String ❑✓ ' 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Hilcorp Alaska, LLC Exploratory 0 Development ❑✓ 210-064 3.Address: 3800 Centerpoint Dr,Suite 1400 Stratigraphic 0 Service 0 6.API Number: Anchorage Alaska 99503 50-133-20589-00 ° 7. If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? N/A Ninilchik Unit Paxton 4 ' Will planned perforations require a spacing exception? Yes El ❑No 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL0384372/FEE-CIRI Ninilchik/Beluga-Tyonek Gas • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD: Effective Depth TVD: MPSP(psi): Plugs(MD): Junk(MD): 6,953' , 3,831' ' 6,505' 3,476' ' -1,341 psi N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 96' 20" 117' 117' Surface 2,473' 9-5/8" 2,494' 1,417' 6,870psi 4,750psi Intermediate Production 5,042' 4-1/2" 6,947' 3,826' 8,430psi 7,500psi Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 4-1/2" 12.6#/L-80 1,955' Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): ZXP Liner Top Pkr;N/A 1,142'MD/1,005'TVD;N/A,N/A 12.Attachments: Proposal Summary Q Wellbore schematic ❑✓ 13.Well Class after proposed work: + Detailed Operations Program ElBOP Sketch 1:1 Exploratory ElStratigraphic ElDevelopment ❑✓ Service El 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: February 2,2018 OIL ❑ WINJWDSPL ❑ El Suspended ❑ 16.Verbal Approval: Date: GAS ❑✓ • WAG El GSTOR El SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown 0 Abandoned ❑ 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Chad Helgeson 777-8405 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: tkramer@hilcoro.com Contact Phone: 777-8420 Authorized Signature: eglf "7/4r /// Date: C�2' ? COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3's- D31 Plug Integrity ❑ BOP Test El Mechanical Integrity Test ❑ Location Clearance ❑ Other: Post Initial Injection MIT Req'd? Yes ❑ No ❑ a P°:�DM+�� L t_ F:.:3 - 1 2FJ18 Spacing Exception Required? Yes IDNo d Subsequent Form Required: /0_Li d Li APPROVED BY Approved by: ta2C/4...." COMMISSIONER THE COMMISSION Date: t ( 3 II w 1 ...21,_e ?_e Submit Form and Form 10-403 Revised 4/201 Approved applicatin DdicI �7he date of approval. � ttachments in Duplicate -�ri ,.....A.S. 72-y78 • Well Prognosis Well: Paxton#4 Ililcora Alaska,Lb Date: 1/17/2018 Well Name: Paxton#4 API Number: 50-133-20589-00 Current Status: Flowing Gas Well Leg: N/A Estimated Start Date: February 2, 2018 Rig: N/A Reg.Approval Req'd? 403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 210-064 First Call Engineer: Ted Kramer (907) 777-8420 (0) (985) 867-0665 (M) Second Call Engineer: Taylor Nasse (907) 777-8354 (0) (907) 227-5293 (M) AFE Number: Current Bottom Hole Pressure: — Unknown @ 3,408' TVD (No pressure tests) Maximum Expected BHP: — 1,490 psi © 3,408' TVD (Assuming normally pressured Res.) Max.Allowable Surface Pressure: -. 1341 psi (Assuming 0.1 psi I ft Gas gradient) Brief Well Summary The Paxton#4 well was drilled in June of 2010 and completed later that year. Another 10' of Beluga perforations was added in March of 2012.This well is highly deviated at over 80 degrees at 2,353 feet and consequently slickline has not been able to get down it to perform any pressure work. The purpose of this work/sundry is to install a cap string to inject soap to help unload water. Notes Regarding Wellbore Condition • Wellbore is highly deviated with a maximum hole angle of 81.2185° @ 2,417' MD. Capstring Procedure: 1. MIRU Cap String Truck, PT lubricator to 3,000 psi Hi 250 Low. 2. Install new wellhead packoff. 3. PU 3/8" capillary string. RIH and set at+/-4,800'. 4. Set spool of remaining line near well. 5. Rig down Cap String Truck. 6. Turn well over to production. Attachments: 1. Actual Schematic 2. Proposed Schematic 0 0 la PAX-4 Paxton Pad Hilcorp Alaska 678' FNL, 2,940' FEL Sec. 13, TIS, R14W, S.M. Permit#: 210-064 Conductor API#: 50-133-20589-00-00 20" X-65 129.45 ppf PE 0.625 Wall Thickness Prop. Des: ADL-384372 iL Top Bottom KB elevation: 171' (21'AGL) MD 0' 117' Latitude: 60°05'51.07"N TVD 0' 117' Longitude: 151°35'41.25"W Spud Date: 5:30hrs 6/8/10 Surface Casing TD Date: 6/19/10 9-5/8" L-80 40 ppf Butt Rig Released: 18:00hrs 6/24/10 Top. Bottom PA#. MD 0' 2,494' TVD 0' 1,417" 11 12-1/4"hole Cmt w/601 sks(282 bbls)of 11.8 ppg Type-1 cmt.202sks(95 bbls)to surface Chemical Injection Mandrid Tie-Back Tubing @ 1,505'MD 4-1/2" L-80 12.6 ppf IBT ('A *` Tog Bottom MD 0' 1,955' TVD 0' 1,314' 4-1/2"ZXP Liner Top Packer (1,142'-1,955'MD) Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 ,'. Top Bottom Liner Hanger MD 1,905' 6,947' Baker 9-5/8'by 4-1/2" TVD 1,302' 3,826' (1,925'-1,965'MD) 8-1/2"hole Cmt w/1,086 sks(325 bbls)of 14 ppg Type-1 cement. -200sks(60 bbls)to surface.Did not bump plug. KOP @ 160'MD/ND ...1J1 Build 3.6°/100"from 160'-2,400'MD ---,....., Hold 80° from 2,400'-3,700'MD 7:12:1 IEE Drop 2.7°/100' to 5,250'MD Final angle 37.6° at 6,494'MD @ PBTD .1..J Azimuth: 32.4 deg. 73 KZE L;1... ?eIu Petfs. mg Iy12 Et Sur)Tvgt rata '"R" 132 4828.4836" 2177.2184' 10 6spf Super Hero 3/22/12 Marker Joints (MD): 132 5119.5133' 2383-2393' 14 4spf Connex 10/18/10 @ 4,778' 132 5171=5182' 2422-2430' 11 4spf Connex 10/18/10 all @ 6,358' B2 5224.5239' 2463-2475' 15 6spf Owen's 10/15/10 82 5291.5299' 2515.2522' 8 6spf Owen's 10/15/10 132 5317.5323" 2536.2541' 6 6spf Owen's 10/13/10 '' B2 5370-5379" 2578-2585' 9 6spf Owen's 10/13/10 Tag Bottom @ 5124'3/21/12 132 5582.5593 2746.2755' 11 4spf Connex 10/11/10 B'3 5830.5839' 2942-2950' 9 4spf Connex 10/11/10 133 6236.6242' 3263.3268' 6 4spf Connex 10/09/10 133 6251.6258" 3275.3281' 7 4spf Connex 10/09/10 TD PBTD est. 6,953'MD 6,505'MD 3,831'ND 3,476'TVD Well Name& Number: Paxton#4 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): Perf(ND): /Angle(Cil K01'& of Tili nn(il(.(I)1'c>rl: Date Completed: Ground Level: 150'(AMSL) RKB: 21'(AGL) Revised by: Donna Ambruz Revision Date: 07-21-17 0 0 PAX-4 PROPOSED II Paxton Pad SCHEMATIC Hilcorp Alaska 678' FNL, 2,940' FEL Sec. 13, T1S, R14W, S.M. Permit#: 210-064 Conductor API#: 50-133-20589-00-00zo" x-ss 129.45 ppf PE Prop.Des: ADL-384372 x, rop os62o Wall Thickness KB elevation: 171' (21'AGL) MD o' 117' Latitude: 60°05'51.07"N TVD o' 117 . [ Longitude: 151°35'41.25"W Spud Date: 5:30hrs 6/8/10 Surface Casing TD Date: 6/19/10 9.5/8" L-80 40 ppf Butt Rig Released: 18:00hrs 6/24/10 To Bottom PA#. MD 0' 2,494' TVD 0' 1,417" " t. 12-1/4"hole Cmt w/601 sks(282 bbls)of 1 11.8 ppg Type-1 cmt.202sks(95 bbls)to surface Chemical Injection MandridTie-Back Tubing 1,505'MD ' , 4-1/2" L-80 12.6 ppf IBT l_g_p Bottom f MD 0' 1,955' TVD 0' 1,314' It 4-1/2"ZXP Liner Top Packer i , ' (1,142'-1,955'MD) Production Liner 4-1/2" L-8012.6 ppf Hydril 563 ,. Two Bottom Liner Hanger MD 1,905' 6,947' Baker 9-5/8'by 4-1/2" r TVD 1,302' 3,826' (1,925'-1,965'MD) 8-1/2"hole Cmt w/1,086 sks(325 bbls)of 14 ppg I Type-1 cement. -200sks(60 bbls)to surface.Did not bump plug. ..„,. "'” Capillary String Proposed to Install "-" 3/8" 2205 Stainless Steel KOP @ 160'MD/TVD =I F.= Top Bottom Build 3.6°/100"from 160'-2,400'MD MD 0' X,XXX' Hold 80° from 2,400'-3,700'MD :13 ICE TVD 0' X,XXX' Drop 2.7°/100' to 5,250'MD Final angle 37.6° at 6,494'MD @ PBTD e Azimuth: 32.4 deg. -,- ` Li . peluCla Pert": M Ft Gun Type Mt 82 4026-4836' 2177-2184' 10 6spfi duper Hero 3/22/12 Marker Joints (MD): J 82 51195133' 2383-2393' 14 4spf Connex 10/18/10 @ 4,778' 82 5171-5182' 24222430' 11 4spf Connex 10/18/10 @ 6,358' 92 5224-5239' 2463-2475' 15 6spf Owen's 10/15/10 82 5291.5299' 2515.2522' 8 6spfOwen's 10/15/10 82 5317.5323' 2536.2541' 6 6spf Owen's 10/13/10 82 5370=5379' 2578-2585' 9 6spf Owen's 10/13/10 Tag Bottom @ 5124'3/21/12 82 5582-5593 2746.2755' 11 4spf Connax 10/11/10 83 5830-5839' 29422950' 9 4spf Connex 10/11/10 83 6236.6242' 3263-3268' 6 4spf Connex 10/09/10 83 6251-6258' 3275-3281' 7 4spf Connex 10/09/10 B3 6405-6420' 3397-3408' 15 4spf Connex 10/09/10 TD PBTD est. 6,953'MD 6,505'MD 3,831'TVD 3,476'TVD Well Name&Number: Paxton#4 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): Perf(TVD): Angle a, KOP& Deplh. Angle(d7 Perfs: Date Completed: Ground Level: 150'(AMSL) RKB 21'(AGL) Revised by: Donna Ambruz Revision Date: 07-21-17 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. aJ 0 - 0 .6 L Well History File Identifier Organizing(done) ❑ Two-sided IHhhll IIII II III ❑ Rescan Needed lUll IIII II III III :TAN DIGITAL DATA OVERSIZED (Scannable) Co or Items: ❑ Di ettes, No. ❑ Maps: Greyscale Items: Other, No/Type: C. top. , Other Items Scannable by a Large Scanner reA rn q.7'I ON ❑ Poor Quality Originals: Lo( s OVERSIZED (Non-Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: r ,_ / BY: Date: 1 c Li p+ /s/ Project Proofing 1111111111111111 BY: Maria Date: ca Lip /s/ a' / Scanning Preparation S. x 30 = /50 + /0 = TOTAL PAGES /Lo (Count does not include cover sheet) BY: Date: `/ . /iL f /s/ Production Scanning 111111111111011111 Stage 1 Page Count from Scanned File: I Cp / (Count does include cover heet) Page Count Matches Number in Scanning Preparation:include NO BY: aria M Date: l /all.1 t 4 /st Mt 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. II I ReScanned I 3111111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked 111111111113111 12/22/2011 Well History File Cover Page.doc DATA SUBMITTAL COMPLIANCE REPORT 4/15/2013 Permit to Drill 2100640 Well Name /No. NINILCHIK UNIT PAXTON 4 Operator HILCORP ALASKA LLC API No. 50- 133 - 20589 -00 -00 I MD 6953 TVD 3831 Completion Date 10/10/2010 Completion Status 1 -GAS Current Status 1 -GAS UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey .AD DATA INFORMATION Types Electric or Other Logs Run: GR, RES, DEN, NEU, CAL, SONIC, NMR (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Di ital Dataset Log Log Run Interval OH / • Type Frmt Number Name Scale Media No Start Stop CH Received Comments Rpt Report: Final Well R 0 6953 Open 11/22/2010 * * * *NO DIGITAL DATA * * ** Final Well Rep, Tab of Content, Mud Equip $ Crew, Well Detail, Geo Data, Drill Data, Daily t Reps. Log V Mud Log 2 Col 117 6953 Open 11/22/2010 TVD Formation Log Log./ Mud Log 2 Col 117 6953 Open 11/22/2010 MD Formation Log Log Mud Log 2 Col 117 6953 Open 11/22/2010 MD LWD Combo Log Log- Mud Log 2 Col 117 6953 Open 11/22/2010 TVD LWD Combo Log Log Mud Log 2 Col 117 6953 Open 11/22/2010 MD Drilling Dynamics Log `' Mud Log 2 Col 117 6953 Open 11/22/2010 TVD Drilling Dynamics LogJ Cement Evaluation 5 Blu 1700 6505 Case 11/22/2010 Dual Rad CBL, GR, CCL Log Induction /Resistivity 2 Blu 2535 6953 Open 11/22/2010 TVD, MPR, CNP, CBD, MR, GR fib Log/7 Induction /Resistivity 2 Blu 2535 6953 Open 11/22/2010 MD, MPR, CNP, CBD, MR, GR Log Induction /Resistivity 5 Blu 2535 6953 Open 11/22/2010 TVD, MPR, CNP, CBD, MR, GR of Log Induction /Resistivity 5 Blu 2535 6953 Open 11/22/2010 MD, MPR, CNP, CBD, MR, GR Log Magnetic Resonance 2 Col 2490 5670 Open 11/22/2010 LWD MR LMR. 110 Echo Data Reprocessing Log/ Magnetic Resonance 2 Col 2490 5670 Open 11/22/2010 LWD MR LMR. 110 Echo 1 Data Reprocessing Log , - Sonic 5 Col 2500 6850 Open 11/22/2010 LWD Acoustic LAC. 100 Compressional Waveform Processing DATA SUBMITTAL COMPLIANCE REPORT 4/15/2013 Permit to Drill 2100640 Well Name /No. NINILCHIK UNIT PAXTON 4 Operator HILCORP ALASKA LLC API No. 50- 133 - 20589 -00 -00 MD 6953 TVD 3831 Completion Date 10/10/2010 Completion Status 1 -GAS Current Status 1 -GAS UIC N Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? Y / 1� Daily History Received? N • Chips Received? ¥ -/_QI' Formation Tops N Analysis YTN. Received? �Q p �{ (� Comments: ld r0. IAFf ' 44.4.0%. l�r" � O V" 1_1 % I y � C. 0 1P ), , p talk_ 14.4vd Compliance Reviewed By: Date: \ !.k • , - • • SATE CIF AllASEnt SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Kevin J. Skiba Regulatory Compliance Representative Marathon Alaska Production, LLC P.O. Box 1949 Anchorage, AK 99611 -1949 a16 06' Re: Ninilchik Field, Beluga Pool, Paxton #4 Sundry Number: 311 -354 Dear Mr. Skiba: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of twroval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is I received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Si • cer - an • n er DATED this ID day of November, 2011. Encl. • • Marathon Alaska Production LLC \. /J Alaska Asset Team Marathon rat ha n { t P.O. Box 1949 1 1 Kenai, AK 99611 Telephone (907) 283 -1371 Fax (907) 283 -1350 November 7, 2011 Mr. Daniel Seamount Alaska Oil & Gas Conservation Commission 110 09 , fl 333 W 7 Ave �' k a uiiie �� 1� Anchorage, Alaska 99501 A� �s c is , Ota —14 4/0 # Reference: 10-403 Application for Sundry Approvals Field: Ninilchik Field Well: Paxton #4 Dear Mr. Seamount, Submitted for your approval is the10 -403 Application for Sundry Approvals for PAX-4 well. PAX-4 was first completed into the Beluga formation in November of 2010. Marathon would like to add an additional10' of perforations at 4,826' - 4,836' MD. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, g .P./UV A— ' )* * Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-403 Application for Sundry Approvals cc: AOGCC Current Well Schematic Houston Well File Proposed Well Schematic Kenai Well File Detailed Operations Program (2) KJS ' RECEIVE • 4• 1 A T E OF ALASKA kk--1 �l ALASKA OIL AN AS CONSERVATION COMMISSION \` NOV () 9 ?0,1 . APPLICATION FOR SUNDRY APPROVALS)" (to /1- - -// 20 AAC 25.280 Ari Gil & t, Cans. Carrell' ,ion 1 Type of Request Abandon El Plug for Redriii ❑ Perforate New Pool ❑ Repair well ❑ Change approved program Suspend ❑ Plug Perforations 0 Perforate MI' Puri Tubing ❑ Spie' �' LIrl ension ❑ Operational shutdown ❑ Re -enter Susp Welt 0 Stimulate ❑ Alter casing ❑ Other. ❑ 1 1 2 Operator Name 4 Current Well Class 5 Permit to Drill Number Marathon Alaska Production LLC Development © , Exploratory U 210 - 064 - 3. Address PO Box 1949 Stratigraphic ❑ Service ❑ 6 API Number .v.?O.S` Kenai Alaska, 99611 - 1949 , 50 - 133 - 00990 - 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 Paxton #4 Spacing Exception Required? Yes ❑ N ❑ 9. Property Designation (Lease Number): 10 Field /Pool(s) ADL - 384372/F�'. a// ' Ninilchik Unit / Beluga Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 6,953' - 3,831' 6,505' 3,476'• NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 96' 20" 117' 117' Surface 2,473' 9-5/8" 2,494' 1,417' 6,870 psi 4,750 psi Intermediate Production 5,042' 4112" 6,947' 3,826' 8,430 psi 7,500 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 5,119' - 6,420' 2,383' - 3,408' Tie -Back 4-1/2" L-80 1,955' Packers and SSSV Type: SSSV: NA Packers and SSSV MD (ft) and TVD (ft): NA NA Packers: ZXP Liner Top Packer Packer MD & TVD 1,142' 1,005' 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program © BOP Sketch ❑ Exploratory ❑ Development I',1- Service ❑ 14, Estimated Date for 15. Well Status after proposed work: Commencing Operatons: November 14, 2011 Oil ❑ Gas El ' WDSPL ❑ Plugged 0 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17, 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative Signature �rn e (907) 283 - 1371 Date November 7, 2011 jitriLL.(: . ......5 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 ( ( q T Location Clearance Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ ocat ❑ Other: Subsequent Form Required: tj 0 \...k r ir a APPROVED BY /� // approved by: '( ISSIONER THE COMMISSION Date: /f f "�+ F eDMS NOV 14 St * "dl (X f ORIGINAL Form 10 -403 Revised 12/2009 Subm,1 in 0' nlirafc • • Paxton #4 Marathon Oil Company Add Perf Procedure WWDC OE COMA 4 4 45 �, • di, • MARATHON CID V <(4 V1flE S MARATHON OIL COMPANY Ninilchik Field Paxton #4 Post Rig Completion Procedure Version - Original Originator Date Comments Review /Approval Date Mickey Mullin 11/1/11 Perforating Procedure Bruce Mdninch 11/7/2011 CONFIDENTIAL MATERIAL Page 1 of 11 • . , • • Paxton #4 Marathon Oil Company Add Perf Procedure WWDC TABLE OF CONTENTS 1 Emergency Response Information 3 1 1 Directions to Location . . . . . .......... , .......... .... . ...... ... .. . ..... 3 1.2 Contact Numbers 3 1.3 Marathon Emergency Response Contacts 3 1.4 Outside Emergency Response 3 1.5 Marathon Contact List 4 1.6 Working Interest Owners Information 4 2. Regulatory Agency Contacts 4 2.1 Internal Regulatory Contact 4 2.2 External Regulatory Contact 4 3. Completion Program Summary 4 3.1 Completion Procedure Executive Summary 4 3.2 General Well Data 4 3.3 Casing / Tubing Program Summary 5 3.4 Cement Summary 5 3.5 Completion Fluid Specifications 5 3.6 Summary of Potential Completion Hazards 5 3.7 Summary of Potential HES Hazards 6 3.8 Well Control / Barrier Plan 6 4. Detailed Completion Procedure (Include Best Practices, Key Performance Factors, Hazards) 7 11/7/2011 CONFIDENTIAL MATERIAL Page 2 of 11 • • ' Paxton #4 Marathon Oil Company Add Perf Procedure VWVDC 1. Emergency Response information 1.1 Directions to Location Method Directions Air Latitude - 60 °05'44.074 "N Longitude - 151°36'39.026V/ (NAD 83) From the Kenai airport, go 0.5 mile South on Willow Street. Tum East on Main Street Loop, go 0.3 miles. Continue East on Ground Bridge Access Road 3.2 miles. Turn West on Kalifomsky Beach Road. Go West and then South, go 16.9 miles. Tum South on Sterling Highway, go 21 miles. Turn West onto road to the pad (Sterling Highway milepost 131.2). 1.2 Contact Numbers Contact Office Cell Marathon Supervisor 713- 296 -1920 713 -294 -1735 Susan Dionne Pad Operator 1.3 Marathon Emeraencv Response Contacts Inthvickiel Potation 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 Emeraencv Response Location Contact Phone Fire Kenai / Soldotna, Alaska 907- 262 -4792 Ambulance 911 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 907-2624453 Coast Guard 800- 478 -5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil / Toxic Chemical Spills 800- 424-8802 11/7/2011 CONFIDENTIAL MATERIAL Page 3 of 11 1 • Paxton #4 Marathon Oil Company Add Perf Procedure WWDC 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Mickey Mullin Completion Engineer 713 -296 -2397 — 281 - 413 -5088 713 - 513 -4384 i Bruce Mclninch Completion Manager 713 - 296 -3971 281- 435 -4052 713- 499 -6739 Mike Ellis Prod Eng Supv 907- 283 - 1337 907- 748 - 2819 907- 283 -1350 Mike Marini Production Engineer 907- 283 - 1370 907- 394 - 1824 907- 283 -1350 Ray Steppe Drilling Manager 713- 296 -3268 281- 799 -4301 713- 499 -3341 Rowland Lawson HES Supervisor 832 - 531- 6901 907- 394 -2641 1.6 Working Interest Owners Information Company working Interest - Address Phone Facsimile Marathon 60% P.O. Box 196168 907- 561 - 5311 907- 565 -3076 _ Anchorage, AK 99519 -6168 Chevron 40% 2. Regulatory Agency Contacts 2.1 Internal Regulatory Contact Canted t Tills I Office Phan t CeN Photo Home Phone Facsimie Chick Underwood ( Regulatory Compliance 713 - 296 -3254 I 979 -830 -7927 979 -836 -9390 713 -499 -6748 2.2 External Regulatory Contact - emus Title Office Phone FaceanNe 24 hr Emergency Pager AOGCC 907- 793 -1236 AOGCC North Slope Pager - 907 -659 -3607 BLM 907 -267 -1442 3. Completion Program Summary 3.1 Completion Procedure Executive Summary 1. RU eline with Welltec tractor. 2. Underbalance perforate lower Beluga interval. 3. Flow 4. RDMO location. 3.2 General Well Data 11/7/2011 CONFIDENTIAL MATERIAL Page 4 of 11 . • Paxton #4 Marathon Oil Company Add Perf Procedure WWDC Weft Name Paxton #4 Lease / License , Surface Location 678'FNL, 2940'FEL, Sec.13 , T1S, R14W, S.M. WBS Code 00.09.21421.CAP.CMP.02 Slot/Pad Paxton Pad Field Ninilchik Unit Spud Date June 8, 2010 KB (above MSL) 171' County /Province Kenai Peninsula API No. GL (above MSL) 150' State / Country Alaska Permit No. Perm. Datum KB Total MD 6953' Well Class Development Water Depth N/A Total TVD 3831' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 3.3 Casino 1 Tubing Program Summary MD (ft) Connection Performance Ratlngs (Minium Csg Makeup Hole I t _ Size Wt. ID Drift Top 0. D. Torque Size (In) Top Shoe (WS) (in) (in) Grade Corm. (in) , (ft-lbs) (in) 20" 0' 117' 129 18.75 X -56 � P.E. 20 22 22 3060 1450 2130 9-5/8" 0' 2494' 40 8.835 8.679 L-80 BTC 10.625 12 -1/4 5750 3090 916 4-1/2" 0' 1955' 12.60 3.958 3.833 L-80 IBT-Mod 5.563 Position 8.835 7500 8430 288 4-1/2" 1905' 6579' 12.60 3.958 3.833 L-80 563 5.200 6500 8-1/2 7500 8430 288 3.4 Cement Summary String Description 9 518" 12-1/4" hole Cmt w/ 601 sks (283 bbls) of 11.8 ppg Type -1 cmt. 95 bbls to surface. 100% returns at surface . �durina entire lob. __ 4 1/2" 8-1/2" hole Cmt w/ 1086 sks (325 bbls) of 14.0 ppg Type -1 cmt. Approx. 60 bbls to surface. 100% returns at surface durinp entire lob. 3.5 Completion Fluid Specications Interval - TVD Derby Fluid Description Adatilms From (it) To (f) _ (1011) 0' 3,435' 8.5 3% KCL Biocide 3.6 Summary of Potential Completion Hazards Precautions Discussion Hazard Event Pressure Testing • Uncontrolled /Unexpected Release of • Ensure all personnel remain clear of Stored Energy. pressurized equipment. Man lift operations • Potential for dropped objects. • Ensure all personnel remain clear during f'ifting/lowering operations. 11/7/2011 CONFIDENTIAL MATERIAL Page 5 of 11 . • • Paxton #4 Marathon 011 Company Add Perf Procedure WWDC • Rotating, reciprocating and over -head Mechanical (kinetic equipment will be present on location • Ensure all safety guards are in place and and will be a hazard for personnel personnel are well familiar with operations, energy) working around the well head and Monitor inexperienced crew members. equipment. 3.7 Summary of Potential HES Hazards HES Related Discussion Precautions Hazard Event Potential for liquids (oil, fuel, • Ensure equipment is properly inspected prior • Spills to entering location. ALL equipment will have chemicals) to be released onto pad. "duck pond" type containment fit for purpose. • • Potentially harmful chemicals used Correct PPE to be worn Chemical Contact during completion operations • Spill/wash kits and MSDS material sheets available on location Fire • Potential for fire resulting from • Fire extinguishers to be positioned beside all equipment failure equipment with a fire potential 3.8 Well Control / Barrier Plan Operation Tubing Arxndus • Perforating Pressure tested lubricator and tree. 41/2" tie back integrity tested • Cement behind surface casing • Coiled Tubing Pressure tested BOPE and tree. Cement behind casing at surface • Tested annulus integrity 11f712011 CONFIDENTIAL MATERIAL Page 6 of 11 • • • • ° Paxton #4 Marathon oil Company • Add Pert Procedure VW/DC 4. Detailed Completion Procedure (Include Best Practices, Key Performance Factors, Hazards) 1. Deliver diesel - fueled man -lift, heater, and light plants to location 2. Mobilize Welltec tractor and firing head from Prudhoe. 3. Set up Welltec at Pollard Eline shop to interface test and surface test the tractor. 4. PROPOSED BELUGA PERFORATIONS NOTE: Surface Pressure SBHP 30% DD Measured Depth TOP TVD (0.438 psi/ft) 0.57 gas 4826' — 4836' MD (GR) (10 ft) 2,177 953 psi 580 psi 5. MIRU Expro wireline to perforate the proposed Beluga interval. Pressure test lubricator and BOPE to 4500 psi. PU and RIH w/ CCL, 3.375" guns loaded 4 SPF 60 degree- phased, 318 WellTec tractor and WellTec firing head. Maintain flow while RIH. 6. Tie in to CBL. Close well and let pressure build to 580 psi. Perforate Beluga interval (4,826 -4,836 ft MD, correlate depth to Expro CBUGR/CCL log run 4/13 /2010). Note pressure build rate before and after perforating. Monitor tubing for signs guns have fired, POOH and flow well to system. Contact Houston Reservoir Engineering with flow rate questions — Clyde Scott @ 713 - 296 -2336. 7. RDMO Expro wireline. 8. Release all rental and test equipment. Clear location and turn over well to production operations. 11/7/2011 CONFIDENTIAL MATERIAL Page 7 of 11 PAX -4 1 /i'0.!1r Paxton Pad Marathon Oil Permit #: 210 -064 678' FNL, 2,940' FEL Alaska Production 1 LC API #: 50- 133 - 20589 -00 -00 Prop. Des: ADL - 384372 Sec. 13, T1S R14W, S.M. KB elevation; 171' (21' AGL) - Conductor Latitude: 60° 05' 51.07" N 20" X -65 129.45 ppf PE Longitude: 151° 35' 41.25" W 0 625 Wall Thickness Top Bottom Spud Date: 5:30hrs 6 /8 /10 r I MD 0' 117' TD Date: 6119110 TVD 0' 117' Rig Released: 18:00hrs 6124110 PA #: j l .1 Surface Casing 1 9 -5/8" L -80 40 ppf Butt T B ottom r ' MD 0' 2,494' TVD 0' 1,417" 12-1/4" hole Cmt wt 601 sks (282 bbls) of Chemical Injection Mandrid I 11.8 ppg Type-1 cmt 202sks (95 bbls) to surface a 1,505' MD ! Tie -Back Tubing - - °� 4.1/2" L -80 12.6 ppf IBT 4 -1/2" ZXP Liner Top Packer Toe Bottom (1,142' - 1,955' MD) MD 0' 1,955' TVD 0' 1,314' t r Liner Hanger Production Liner Baker 9 - 5/8' by 4 - 1/2 " 4.1/2" L -80 12.6 ppf Hydril 563 (1,925' - 1,965' MD) - 12.2 Bottom 41111.„ MD 1,905' 6,947' TVD 1,302' 3,826' 8-1/2" hole Cmt w/ 1,086 sks (325 bbls) of 14 ppg Type -1 cement -200sks (60 bbls) to surface Did not bump plug ■OP @ 160 ' MD /TV0 ..L' 7 IrJ guild 3.6 °/100" from 160' - 2,400' MD told 80° from 2,400' - 3,700' MD _ L lrop 2.7 °I100' t oa 5,250' M0 final angle 37,6° at 6,494' MD @ PBTD 1 E3_ slmuth: 32.4 deg. �tluaa P trr fs: �� .� Dm a Gun Type gib B2 5119 -5133' 2383 -2393' 14 4spf Connex 10/18/10 _ 82 5171 -5182' 2422 -2430' 11 4spf Conner 10/18/10 11 C 82 5224 -5239' 2463 -2475' 15 6spi Owen's 10/15/10 Marker Joints (MD): ..� 82 5291 -5299' 2515 -2522' 8 6spi Owen's 10/15/10 @ 4,778' C 6,358- 82 5317 -5323' 2536 -2541' 6 6spi Owen's 10/13/10 @ 82 5370 -5379' 2578 -2585' 9 6spt Owen's 10/13/10 TJ LL SWINOr 82 5582 -5593 2746 -2755' 11 4spf Connex 10/11/10 B3 5830 -5839' 2942 -2950' 9 4spf Connex 10/11/10 L 83 6236 -6242' 3263 -3268' 6 46pf Cannes 10/09/10 83 6251 -6258' 32753281' 7 4sp1 Conner 10/09/10 83 6405.6420' 3397-3408' 15 4spf Connex 10/09/10 4 TD PBTD est. 6,953' MD 6,505' MD 3,831' TVD 3,476' TVD Well Name & Number: Paxton #4 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska ` Country:1 USA Perforations (MD): 5.119' - 6,420' Pert (TVD): 2,383' - 3,408' Angle # KOP & Depth. 3.6 1 100' (4 160' MD Angie 6 Perfs 42....__:, ° 37.5 Date Completed: 10/9/2010 Ground Level: 150 ' (AMSL) ( RKB: , 21' (AGL) Revised by: Kevin Skiba Revision Date: _ 11/07/2011 PAX -4 am./1/ PROPOSED Marathon Oil Permit #: ~ 210 -064 Paxton Pad Alaska Production 1.1C API #: 50 -133- 20589 -00 -00 678' FNL, 2,940' FEL Prop. Des: ADL - 384372 elevation: 171' (21' AGL) titude: 60° 05' 51.07" N ngitude: 151° 35' 41.25" W ud Date: 5:30hrs 6/8/10 rop. Sec. 13, T1S, R14W, S.M. KB ' Conductor Latitude: 20" x -65 129.45 ppf PE Lo 0.625 Wall Thickness lop Bottom Sp 1 MD o' 11r TD Date: 6/19/10 TVD 0' 117' Rig Released: 18:00hrs 6124/10 PA #: 1 Surface Casing 9 -518" L -80 40 ppt Buts T� Bottom MD 0' 2,494' TVD 0' 1,417" 12-1/4" hole Cmt w/ 601 sks (282 bbfs) of Chemical Injection Mandrid 11.8 ppg Type -1 cmt 202sks (95 bbls) to @ 1,505' MD surface T ie -Back Tubing K -: 4.112" L -80 12.6 ppl IBT 4 -1/2" ZXP Liner Top Packer _ Top Bottom P (1,142' - 1,955' MD) MD 0' 1,955' TVD 0' 1,314' . a Liner Hanger Production Liner Baker 9 - 5/8 ' by 4 - 1/2 " 4 -1/2" L -80 12.6 ppt Hydril 563 (1,925'- 1,965' MD) Top Bottom MD 1,905' 6,947' TVD 1,302' 3,826' 8-1/2" hole Cmt w/ 1,086 aka (325 bbls) of 14 ppg Type -1 cement - 200sks (60 bbls) to surface Did not bump plug :OP # 160'MD/TVD Wild 3.6 °1100" from 160' - 2,400' MD lold 80° from 2,400' - 3,700' MD ` 1.131 Petfst am........moimemi in Mop 2.7 °1100' to 5,250' MD 1 f� Quin Tvoo Q� foal angle 37.6° at 6,494' MD PI3TD LJ L JI 7 - 82 482 4836 2177 =2184` 110 proposed zimuth: 32.4 deg. wl LC . � B2 51195133' 2383 2393' 14 4spf Ctxnex 10/18/10 RA-- B2 5171-5182' 2422 -2430' 11 4spf Connex 10/18/10 ILI 82 5224 -5239' 2463 -2475' 15 6spf O`ven's 10/15/10 � 82 5291 -5299' 2515-2522' 8 6spf Owen's 10/15110 Marker Joints (MD): > � "-1 B2 5317 -5323' 2536 -2541' 6 6spf Owen's 10/13/10 @ 4,778' B2 5370 -5379' 2578 -2585' 9 6spf Owen's 10/13110 @ 6,358' a B2 5582 -5593 2746 -2755' 11 4spf C.nnnex 10/11/10 as Q B3 5830.5839' 2942 -2950' 9 4spf Conne% 10/11/10 B3 6236.6242' 3263 -3268' 6 4spf Connex 10/09/10 63 6251.8258' 3275 -3281' 7 4spf Connex 10/09/10 B3 6405.8420' 3397 -3408' 15 4spf Connex 10/09/10 II TD PBTD est. 6,953' MD 6,505' MD 3,831' TVD 3,476' TVD Well Name & Number: Paxton #4 Lease: Ninilchik Unit - Municipality: Kenai Peninsula Borough State: Alaska I Country: I USA Perforations (MD): 5,119' - 6.420' Pert (TVD): 2,383' - 3.408' Angie @ KOP & Depth 3.6 / 100' a 160' MO Angie @ Perfs 4 ° • 37.5" Date Completed: 1019/2010 Ground Level: _ 150 ' (AMSL) L RKB: I L (AGL) - Revised by: Kevin Skiba Revision Date: 11/07/2011 • • Marathon Oil Company Aaska Asset M Marathon P!O. Box 1949 Team MARATHON Alaska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 November 11, 2010 Mr. Winton Aubert alECEI 'E: Alaska Oil & Gas Conservation Commission 333 W 7 Ave NOV 1 b Mu Anchorage, Alaska 99501 0#110114A8c G3W ORS , 4QJjfr :anion Anchorage Reference: 10 -421 Open Flow Potential Test Report Field: Ninilchik Unit Well: Paxton # 4 Dear Mr. Aubert: Enclosed is the Open Flow Potential Test Report, 10 -421, for well Pax -4. This well was spud on June 8, 20010 and completed into the Beluga formation. Results from the October 20, 2010 flow test were 4,401 mcf at 452 psi tubing pressure. Please call me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, o PA.Jct-' Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10 -421 Open Flow Potential Test Report cc: Houston Well File Reference Attachment List Kenai Well File KJS N di- • • D ECEIVED NIA? \/ 15 7010 STATE OF ALASKA 4' x05.8 Oil & Gas Cons. Cc :anion ALASKA OIL AND GAS CONSERVATION COMMISSION �i�r GAS WELL OPEN FLOW POTENTIAL TEST REPO F".,�3ap 1a. Test: 0 Initial El Annual El Special 1b. Type Test: LJ Stabilized 151 Non Stabilized ❑ Multipoint ❑ Constant Time ❑ Isochronal ❑ Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Alaska Production LLC 10/9/2010 210 -064 3. Address: PO Box 1949 6. Date TD Reached: 12. API Number: Kenai Alaska, 99611 -1949 06/19/2010 50 -133- 20589 -00 -00 4a. Location of Well (Governmental Section): 7. KB Elevation above MSL (feet): 13. Well Name and Number: Surface: 678' FNL, 2,940' FEL, Sec. 13, T1S, R14W, S.M. 21' KB , 171' MSL Paxton #4 Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 2,437' FSL, 622' FEL, Sec. 12, T1S, R14W, S.M. 6,505' MD + 3,476' TVD (est.) Total Depth: 9. Total Depth (MD + TVD): Ninilchik Field / Beluga Pool 1,695' FNL, 167' FWL, Sec. 7, T1S, R13W, S.M. 6,953' MD +3,831'TVD 4b. Location of Well (State Base Plane Coordinates NAD 27): 10. Land Use Permit: 15. Property Designation: Surface: x- 206389.00 y- 2230683.9 Zone- 4 NA FEE -CIRI, ADL- 0384372 TPI: x- 208789.50 y- 2233653.6 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 209596.10 y- 2234778.6 Zone- 4 Monobore 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: From To 4.500" 12.6 ppf, L -80 3.958" 6,947 5119- 5133', 5171- 5182', 5224 - 5239', 5291 - 5299', 5317 - 5323', 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. 5370 - 5379', 5582- 5593', 5830 - 5839', 6236- 6242', 6251 - 6258', 4.500" 12.6 ppf, L-80 3.958" 1,955' 6405 -6420' MD 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): 1,142' - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): Tubing Casing 82 F° 488 psia @ Datum 6,334' TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N % H Prover: Meter Run: Taps: 5,098' MD 2,362' TVD 0.56 0 0.292 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 1.000 452 26.58 47 - - - - 2.00 2. X - - - - - 3. X - - - - 4. X - - - - 5. X - - - - Basic Coefficient Flow Temp. Super Comp. Pressure Gravity Factor Rate of Flow No. (24 -Hour) hwPm Pm Factor F Factor Q Mcfd Fb or Fp Ft 9 Fpv 1. 124.5 35.345 466.73 1.00 1.336 1.0342 4,401 2. 3. 4. 5. Temperature for Separator for Flowing No. Pr T Tr z Gas ' Fluid Gg G 1. 0.69 507.0 1.48 0.935 0.56 N/A 2. 3. Critical Pressure 673.1 4. Critical Temperature 343.2 5. RBDMS NOV 18 Le Form 10 -421 Revised 7/2009 CONTINUED ON REVERSE SIDE Submit in Duplicate y • • Pc pc I Pf 1,230 pt 1,512,900 No. Pt Pt Pc Pw Pw Pc Ps Ps Pf -Ps 1. 555 308025 1204875 2. 3. 4. 5. 25. AOF (Mcfd) 5,627 n 1.000 Remarks: Well not shut -in during test Reservoir pressure estimated from PX -3 MFT gradient FBHP measured from PLT (average across pertd intervals) I hereby certif that the foregoing is rug d correct to the best of my knowledge. Signed .�j(J1.� v Title Regulatory Comp. Representative Date 11/11/2010 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= 1/Z 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 7/2009 Side 2 Marathon Alaska Production LLC Alaska Asset Team Aik Marathon P.O. Box 1949 M0.eaiNON Alaska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 EC 1VED November 11, 2010 Nov 1 5 2010 Mr. Winton Aubert aka iltStta anchor toot age Cuiinnion Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -407 Well Completion Report and Log Field: Ninilchik Unit Well: Paxton # 4 Dear Mr. Aubert: Submitted for your records is the Well Completion Report and Log for Pax -4 well. Pax -4 is a newly drilled Beluga formation well in the Ninilchik Unit. The well was spud on June 8, 2010 and drilled to a total depth of 6,953' MD. Pax -4 was completed into the Beluga formation with perforations spanning from 5,119' to 6,420' MD. Please contact me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, 7 Ciq ■5! Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10 -407 Well Completion Report & Log cc: Houston Well File Reference Attachment List Kenai Well File KJS tA Ut STATE OF ALASKA ALAS IL AND GAS CONSERVATION COMMIS ON WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil ❑ Gas si SPLUG ❑ Other ❑ Abandoned ❑ Suspended ❑ 1b. Well Class: 20AAC25.105 20 Development 0 Exploratory El GINJ❑ WINJ ❑ WAG ❑ WDSPL 111 No. of Completions: S to I +i iip Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., S )0 13 12. Permit to Drill #: 210 - 064 Marathon Alaska Production LLC Aband.: 1 /9 010 Sundry #: 310 - 327 C 3. Address: PO Box 1949 6. Date Spudded: 13. API Number: c ill k Kenai Alaska, 99611 -1949 June 8, 2010 50- 133 -4 00 -00 " 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 678' FNL, 2,940' FEL, Sec. 13, T1S, R14W, S.M. June 19, 2010 Paxton #4 Top of Productive Horizon: 8. KB (ft above MSL): 171' 15. Field /Pool(s): 2,437' FSL, 622' FEL, Sec. 12, T1S, R14W, S.M. GL (ft above MSL): 150' Total Depth: 9. Plug Back Depth(MD +TVD): Ninilchik Unit / Beluga Pool 1,695' FNL, 167' FWL, Sec. 7, T1S, R13W, S.M. 6,505' 3,476' 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 206,389.00 y- 2,230,683.90 Zone- 4 6,953' 3,831' FEE - CIRI, ADL 0384372 TPI: x- 208,789.50 y- 2,233,653.60 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 209,596.10 y- 2,234,778.60 Zone- 4 NA NA NA 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/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): 22.Re- drill /Lateral Top Window MD/TVD: GR, Resistivity, Bulk Density, Neutron, CALI, Sonic, NMR, NA 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM / TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" 129.45 X -65 0' 117' 0' 117' Driven - - 9 -5/8" 40 L -80 0' 2,494' 0' 1,417' 12 -1/4" 601 sks, Type -1 202 sks 4 -1/2" 12.6 L -80 1,905' 6,947' 1,302' 3,826' 8 -1/2" 1,086 sks, Type -1 V -200 sks 24. Open to production or injection? Yes 0 No El If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD/TVD) MD / TVD Perf Size SPF 1,142' 1,005' 5119 -5133' 2383 -2393' .48" 4 4 -1/2" 1,955' 5171 -5182' 2422 -2430' .48" 4 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 5224 -5239' 2463 -2475' .48" 6 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 5291 -5299' 2515 -2522' .48" 6 5317 -5323' 2536 -2541' .48" 6 5370 -5379' 2578 -2585' .48" 6 5582 -5593' 2746 -2755' .48" 4 5830 -5839' 2942 -2950' .48" 4 NOV 15 Z U I G 6236 -6242' 3263 -3268' .48" 4 ' � 6251 -6258' 3275 -3281' .48" 4 Nam' >8( Gtiu (runts, 0,ti tfi$51Qg 6405 -6420' 3397 -3408' .48" 4 Anchorage 27. PRODUCTION TEST Date First Production: 10/10/2010 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: 10/21/2010 24 Test Period —4. 0 3,107 5 64/64 100% gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 451 0 24 -Hour Rate — 0 3,107 5 NA 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water 7 (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. a max' RBDMS NOV 16 2010 Form 10 -407 Revised 12/2009 CONTINUED ON REVERSE Submit original only G 29. GEOLOGIC MARKERS (List all formations and markeountered): 30. FORMA ESTS NAME MD TVD Well tested? Yes E No El If yes, ist intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, Permafrost - Top and submit detailed test information per 20 AAC 25.071. Permafrost - Base Beluga B1 2607 1436 B2 1436 2127 B3 5668 2814 B4 6442 3426 Tyonek T1 6659 3598 Formation at total depth: T1 31. List of Attachments: See Atachment List 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283 -1371 Printed Name: Kevin J. Skiba Title: Regulatory Compliance Representative Signature: � LCJI✓ Tr/ Phone: (907) 283 - 1371 Date: November 11, 2010 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole Item 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with prod Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional in Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. I Form 10 -407 Revised 12/2009 Paxton -4 Ninilchik Unit / Paxton Pad Sundry Attachment List Directional Survey Well Schematic Operations Summary Logs • Dual Radial Cement Bond Gamma / CCL Log (10 -7/10) • Compressional Waveform Processing, 1:240 Scale MD (6- 23 -10) • Echo Data Reprocessing, 1:240 Scale MD (6- 21 -10) • Echo Data Reprocessing, with Saturations 1:240 Scale MD (6- 21 -10) • Echo Data Reprocessing, 1:600 Scale MD (6- 21 -10) • Bit Size, Resistivity, Gas Indicator, 1:240 Scale MD (6 -8 -10) • Bit Size, Resistivity, Gas Indicator, 1:240 Scale TVD (6 -8 -10) • Bit Size, Resistivity, Gas Indicator, 1:600 Scale MD (6 -8 -10) • Bit Size, Resistivity, Gas Indicator, 1:600 Scale TVD (6 -8 -10) • Gamma Ray & Caliper, Resistivity & Perm, Porosity, T2 Distribution, Volumetrics, 1:240 Scale MD (6 -8 -10) • Gamma Ray & Caliper, Resistivity & Perm, Porosity, T2 Distribution, Volumetrics, 1:240 Scale TVD (6 -8 -10) • Gamma Ray & Caliper, Resistivity & Perm, Porosity, T2 Distribution, Volumetrics, 1:600 Scale MD (6 -8 -10) • Gamma Ray & Caliper, Resistivity & Perm, Porosity, T2 Distribution, Volumetrics, 1:600 Scale TVD (6 -8 -10) Compact Disc with Log files • • PAX -4 Paxton Pad Permit #: 210 -064 API #: 50 -133- 20589 -00 -00 678' FNL, 2,940' FEL MARATWOM Prop. Des: ADL- 0384372, FEE -CIRI Sec. 13, T1S, R14W, S.M. KB elevation: 171' (21' AGL) Conductor Latitude: 60° 05' 51.07" N - 20" X-65 129.45 ppf PE Longitude: 151° 35' 41.25" W 0.625 Wall Thickness Spud Date: 5:30hrs 6/8/10 Top Bottom MD 0' 117' TD Date: 6/19/10 ND 0 ' 117' Rio Released: 18:00hrs 6/24/10 PA #: I Surface Casing 9 -5/8" L -80 40 ppf Butt Tom Bottom MD 0' 2,494' TVD 0' 1,417 12 -1/4" hole Cmt w/ 601 sks (282 bbls) of Chemical Injection Mandrid 11.8 ppg Type -1 cmt. 202sks (95 bbls) to surface @ 1,505' MD Tie -Back Tubing 4 -1/2" ZXP Liner Top Packer -. 4 T�80 B ? �mpf IBT (1,142' - 1,955' MD) I I MD 0' 1,955' TVD 0' 1,314' Liner Hanger Production 9 - 5/8 ' by 4 - 1/2 " 4-1 / 2 i on Liner " L-80 12.6 ppf Hydril 563 (1,925' 1,965' MD) ,' T - 8 Bottom MD 1,905' 6,947' TVD 1,302' 3,826' 8 -1/2" hole Cmt w/ 1,086 sks (325 bbls) of 14 ppg Type -1 cement. - 200sks (60 bbls) to surface. Did not bump plug. KOP @ 160 ' MD /TVD =1 CL_ Build 3.6 °1100" from 160' - 2,400' MD Hold 80° from 2,400' - 3,700' MD Drop 2.7 °/100' to 5,250' MD _ Final angle 37.6° at 6,494' MD @ P BTD_� Q_ Azimuth: 32.4 deg. S -� R - L y Beluaa Perfs: MD TVD Ft Gun Type Date Q B2 5119 -5133' 2383 -2393' 14 4spf Connex 10/18/10 LL B2 5171 -5182' 2422 2430' 11 4spf Convex 10/18/10 II TI B2 5224 -5239' 2463 -2475' 15 6spf Owen's 10/15/10 Marker Joints (MD): B2 5291 -5299' 2515 2522' 8 6spf Owens 10/15/10 @ 4,778' _till IEC @ 6 358' .� B2 5317 -5323' 2536 -2541' 6 6sp1 Owen's 10/13!10 B2 5370 -5379' 2578 -2585' 9 6spf Owen's 10/13/10 inl Er __ B2 5582 -5593 2746 -2755' 11 4spf Connex 10/11110 83 5830 -5839' 2942 - 2950' 9 4spf Connex 10/11/10 B3 6236 -6242' 3263 -3268' 6 4spf Connex 10/09/10 83 6251 -6258' 3275 -3281' 7 4spf Connex 10/09/10 33 6405 -6420' 3397 -3408' 15 4spf Connex 10/09;10 TD PBTD est. 6,953' MD 6,505' MD 3,831' ND 3,476' TVD Well Name & Number: Paxton #4 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 5,119' - 6,420' Perf (TVD): 2,383' - 3,408' Angle @ KOP & Depth: 3.6 / 100' (a 160' MD Angle @ Perfs: 42 -. 37.5 Date Completed: 10/9/2010 Ground Level: 150 ' (AMSL) RKB: 21' (AGL) Revised by: Kevin Skiba Revision Date: 11/04/2010 Actual Wellpath Geographic Report Report Generated 6/21/2010 at 10:38:54 _ - Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company an y North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) IIIIIIMIIII Scale 0.999998 Field Ninilchik Field (NAD83) - Horizontal Reference Point Slot Facility Paxton Vertical Reference Point Glacier #1 (RKB) Slot slot#4 MD Reference Point Glacier #1 (RKB) Well Paxton #4 j Field Vertical Reference Mean Sea Level Wellbore Paxton #4 Glacier #1 (RKB) to Facility Vertical Datum 171.00 ft Wellpath GyroData GSS <112- 292' >NaviTrak MWD <350 - 2462' >ATK G3 MWD <2545 - 69535 Glacier #1 (RKB) to Mean Sea Level 171.00 ft Wellbore Last Revised 06/18/2010 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from 1511313.11111- - Section Origin X E 0.00 ft User 1=1111- - Section Origin Y N 0.00 ft Calculation method - Section Azimuth 36.65 Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] Slot Location - 674.13 - 2940.42 1346409.36 2230442.69 60 °05'44.423 "N 151 °36'39.236 "W Facility Reference Pt 1349365.17 2231045.67 60 ° 05'51.066 "N 151 ° 35'41.247 "W F' Reference Pt 1371967.44 2251649.81 60 °09'19.105 "N 151 °28'24.639 "W :3 coordinates are converted to NAD 27 usin • Cor •scon 6.0.1 US Arm Cor .s of En. ineers TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [°] [ °] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ft] [ft] [ ° /100ft] [1 ['I100ft] [ °I100ft] [ft] 0.00 0.00 38.21 0.00 - 171.00 0.00 0.00 1346409.36 2230442.69 206389.9 2230683.798 0.00 38.21 0.00 0.00 0.00 112.00 0.07 38.21 112.00 -59.00 0.05 0.04 1346409.40 2230442.74 206389.94 2230683.848 0.06 -14.72 0.06 0.00 0.07 142.00 0.84 24.70 142.00 -29.00 0.27 0.15 1346409.51 2230442.95 206390.05 2230684.058 2.57 -6.36 2.57 -45.03 0.30 172.00 1.76 21.37 171.99 0.99 0.90 0.41 1346409.79 2230443.58 206390.33 2230684.688 3.08 20.55 3.07 -11.10 0.96 202.00 3.10 30.43 201.96 30.96 2.03 0.98 1346410.39 2230444.69 206390.93 2230685.798 4.63 -0.69 4.47 30.20 2.21 232.00 4.98 30.17 231.89 60.89 3.85 2.05 1346411.50 2230446.49 206392.04 2230687.598 6.27 23.52 6.27 -0.87 4.31 262.00 6.80 36.71 261.73 90.73 6.40 3.77 1346413.28 2230449.00 206393.82 2230690.108 6.46 -1.42 6.07 21.80 7.38 292.00 9.09 36.35 291.44 120.44 9.73 6.23 1346415.83 2230452.27 206396.37 2230693.377 7.64 13.20 7.63 -1.20 11.b3 - - 350.00 13.19 40.53 348.33 177.33 18.46 13.25 1346423.06 2230460.82 206403.601 2230701.927 7.20 3.34 7.07 7.21 22.72 411.00 17.40 41.35 407.16 236.16 30.60 23.80 1346433.90 2230472.70 206414.441 2230713.805 6.91 -13.63 6.90 1.34 38.76 _ 470.00 20.87 39.00 462.89 291.89 45.39 36.25 1346446.71 2230487.19 206427.252 2230728.294 6.02 -12.88 5.88 - 3.98 58.06 531.00 23.63 37.43 519.35 348.35 63.55 50.52 1346461.41 2230504.99 206441.953 2230746.092 4.63 9.25 4.52 -2.57 81.14 591.00 24.98 37.95 574.03 403.03 83.09 65.62 1346476.99 2230524.15 206457.534 2230765.25 2.28 11.26 2.25 0.87 105.83 650.00 26.77 38.74 627.11 456.11 103.28 81.60 1346493.45 2230543.95 206473.995 2230785.048 3.09 2.53 3.03 1.34 131.57 - 710.00 30.18 39.04 679.84 508.84 125.54 99.56 1346511.95 2230565.76 206492.496 2230806.856 5.69 -2.20 5.68 0.50 160.15 769.00 33.49 38.81 729.96 558.96 149.75 119.11 1346532.08 2230589.49 206512.627 2230830.584 5.61 129 5.61 -0.39 191.24 834.00 36.67 38.93 783.15 612.15 178.83 142.55 1346556.23 2230617.99 206536.778 2230859.081 4.89 -14.07 4.89 0.18 228.57 897.00 39.01 38.00 832.90 661.90 209.09 166.58 1346580.99 2230647.66 206561.54 2230888.748 3.82 -0.56 3.71 -1.48 267.19 961.00 42.50 37.95 881.37 710.37 242.02 192.29 1346607.49 2230679.95 206588.041 2230921.035 5.45 10.82 5.45 -0.08 308.95 1024.00 45.53 38.76 926.67 755.67 276.34 219.45 1346635.48 2230713.60 206616.033 2230954.682 4.89 -4.22 4.81 1.29 352.70 -_ 88.00 48.58 38.46 970.27 799.27 312.94 248.68 1346665.59 2230749.48 206646.145 2230990.559 4.78 -13.04 4.77 -0.47 399.52 00 51.88 37.49 1010.57 839.57 351.12 278.46 1346696.30 2230786.91 206676.857 2231027.985 5.37 5.14 5.24 - 1.54 447.92 .00 55.26 37.12 1048.57 877.57 392.07 309.66 1346728.49 2230827.10 206709.049 2231068.171 5.30 -1.81 5.28 -0.58 499.40 8.00 58.22 37.01 1083.11 912.11 434.10 341.41 1346761.25 2230868.34 206741.811 _ 2231109.407 4.70 -11.07 ( 4.70 -0.17 552.08 1342.00 61.41 36.30 1115.29 944.29 478.48 374.43 1346795.34 2230911.90 206775.903 2231152.963 5.08 -3.51 4.98 -1.11 607.39 1405.00 63.75 36.14 1144.30 973.30 523.59 407.47 1346829.47 2230956.20 206810.035 2231197.259 3.72 4.43 3.71 -0.25 663.31 1468.00 66.11 36.34 1170.99 999.99 569.62 441.20 1346864.31 2231001.38 206844.877 2231242.435 3.76 -17.80 3.75 0.32 720.37 1532.00 69.71 35.11 1195.06 1024.06 617.75 475.82 1346900.09 2231048.66 206880.66 2231289.711 5.90 9.77 5.62 -1.92 779.65 1595.00 71.64 35.46 1215.90 1044.90 666.28 510.16 1346935.60 2231096.34 206916.172 2231337.386 3.11 31.45 3.06 0.56 839.08 1658.00 73.51 36.65 1234.77 1063.77 714.87 545.53 1346972.15 2231144.05 206952.724 2231385.092 3.47 i 60.16 2.97 1.89 899.18 1721.00 74.17 37.84 1252.30 1081.30 763.04 582.16 1347009.94 2231191.31 206990.517 2231432.347 2.09 178.33 1.05 1.89 959.69 1783.00 73.84 37.85 1269.39 1098.39 810.10 618.72 1347047.64 2231237.47 207028.219 2231478.503 0.53 20.20 -0.53 0.02 1019.27 1846.00 74.18 37.98 1286.74 1115.74 857.88 655.94 1347086.01 2231284.33 207066.591 2231525.359 0.57 -37.82 0.54 0.21 1079.82 1910.00 75.53 36.90 1303.46 1132.46 906.93 693.49 1347124.75 2231332.45 207105.334 2231573.474 2.67 -2.23 2.11 -1.69 1141.59 1973.00 76.78 36.85 1318.54 1147.54 955.86 730.20 1347162.63 2231380.47 207143.216 2231621.489 1.99 36.45 1.98 -0.08 1202.76 2037.00 78.08 I 37.83 1332.47 1161.47 1005.52 768.09 1347201.72 2231429.19 207182.309 2231670.205 2.52 -89.43 2.03 1.53 1265.22 2100.00 78.09 36.94 1345.48 1174.48 1054.50 805.51 1347240.33 2231477.24 207220.921 2231718.25 1.38 103.41 0.02 -1.41 1326.86 2164.00 77.93 37.63 1358.77 1187.77 1104.31 843.44 1347279.46 2231526.11 207260.054 2231767.116 1.08 -0.78 -0.25 1.08 1389.46 2227.00 78.65 37.62 1371.56 1200.56 1153.17 881.10 1347318.30 2231574.04 207298.896 2231815.041 1.14 -46.08 1.14 -0.02 1451.13 2291.00 79.00 37.25 1383.96 1212.96 1203.03 91926 1347357.66 2231622.95 207338.258 2231863.946 0.79 -2.47 0.55 -0.58 1513.92 2353.00 80.14 37.20 1395.19 1224.19 1251.58 956.15 1347395.72 2231670.59 207376.321 2231911.582 1.84 1.06 1.84 -0.08 1574.89 2417.00 81.21 37.22 1405.56 1234.56 1301.88 994.34 1347435.13 2231719.94 207415.733 2231960.927 1.67 - 119.35 1.67 0.03 1638.04 2462.00 81.16 37.13 1412.45 1241.45 1337.31 1021.21 1347462.85 2231754.71 207443.455 2231995.694 0.23 - 131.86 -0.11 -0.20 1682.50 2545.00 80.78 36.70 1425.48 1254.48 1402.85 1070.44 1347513.67 2231819.03 207494.278 2232060.008 0.69 - 177.55 -0.46 -0.52 1764.47 2606.00 79.86 36.66 1435.74 1264.74 1451.07 1106.36 _ 1347550.75 2231866.36 207531.361 2232107.333 1.51 - 104.29 -1.51 -0.07 1824.60 2668.00 79.75 36.22 1446.71 1275.71 1500.16 1142.61 1347588.18 2231914.55 207568.793 2232155.519 0.72 -90.03 -0.18 -0.71 1885.63 2732.00 79.75 35.87 1458.10 1287.10 1551.08 1179.67 1347626.47 2231964.55 207607.086 2232205.514 0.54 79.23 0.00 -0.55 1948.60 Page 1 of 2 TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [1 r] [ft] [ft] [ft] [tt] [sry ft] [sry ft] [ft] [ft] r/100ft] ["] [ °1100ft] ['1100ft] [ft] 2795.00 79.78 36.03 1469.29 1298.29 1601.27 1216.06 1347664.08 2232013.84 207644.698 2232254.8 0.25 90.04 0.05 0.25 2010.59 2859.00 79.78 Ma= 1480.65 1309.65 1652.08 1253.28 ®' 2232063.73 207683.151 2232304.685 0.60 MEM 0.00 0.61 r® 2923.00 79.88 ®MEMEIMEMEN 1702.51 1291.03 ®' 2232113.22 207722.123 2232354.17 ®IIKEEMMEM �� 2988.00 79.77 �� 1753.11 ®' ° 1347781.87 2232162.85 207762.496 2232403.796 F� ' V r r 3049.00 79.81 38.00 MEMII 1343.24 1800.33 MM. 1347820.08 2232209.16 207800.708 2232450.101 MX= 90.03 MIEN -0 .43 2260.55 3113.00 79.81 38.33 ® 1354.57 1849.86 1406.18 1347860.20 2232257.72 : ® 2232498.656 IMEMIalan 0.00 0.52 2323.52 3176.00 79.88 38.80 IffEEMENEERM 1898.34 1444.84 1347900.03 2232305.25 207880.663 2232546.182 '®' 91.90 '® 0.75 2385.50 3241.00 79.87 MCIEEMMELEMEEME. 1948.10 MIME 1347941.46 2232354.01 207922.095 2232594.937 WEEMI - 101.08 WICEMINIZEM 2449.43 3303.00 79.82 1112133..MCM 1388.03 1995.54 1523.46 1347980.99 2232400.51 207961.628 2232641.432 '® 85.98 -0 '®EMSE 3367.00 79.85 39.28 1570.33 1399.33 2044.46 1563.16 1348021.87 2232448.43 208002.51 2232689.348 0.66 - 150.65 0.05 0.67 2573.35 3430.00 79.78 39.24 1581.47 1410.47 2092.47 1602.40 1348062.27 2232495.48 208042.912 2232736.393 0.13 83.62 -0.11 -0.06 2635.29 3494.00 79.85 39.87 1592.78 1421.78 2141.03 1642.51 1348103.56 2232543.05 208084.205 2232783.958 0.98 - 118.44 0.11 0.98 2698.20 3557.00 79.60 39.40 1604.02 1433.02 2188.77 1682.05 1348144.25 2232589.81 208124.897 2232830.713 0.83 -77.29 -0.40 -0.75 2760.11 3620.00 79.66 39.13 1615.36 1444.36 2236.75 1721.28 1348184.63 2232636.82 208165.28 2232877.719 0.43 - 169.87 0.10 -0.43 2822.01 3683.00 79.22 39.05 1626.91 1455.91 2284.82 1760.33 1348224.84 2232683.92 208205.492 2232924.814 0.71 - 173.99 -0.70 -0.13 2883.89 3747.00 77.00 38.81 1640.09 1469.09 2333.54 1799.68 1348265.37 2232731.67 208246.024 2232972.559 3.49 - 162.47 -3.47 -0.37 2946.46 3809.00 74.71 38.06 1655.24 1484.24 2380.63 1837.05 1348303.88 2232777.83 208284.537 2233018.715 3.88 175.50 -3.69 -121 3006.55 3872.00 72.89 38.21 1672.82 1501.82 2428.21 1874.41 1348342.38 2232824.49 208323.039 2233065.37 2.90 - 168.69 -2.89 0.24 3067.03 3937.00 70.30 37.66 1693.34 1522.34 2476.85 1912.32 1348381.47 2232872.19 208362.132 2233113.066 4.06 174.04 -3.98 -0.85 3128.68 00.00 68.08 37.91 1715.72 1544.72 2523.39 1948.40 1348418.67 2232917.83 208399.334 2233158.701 3.54 - 167.81 -3.52 0.40 3187.56 .00 65.51 37.30 1740.94 1569.94 2569.98 1984.29 1348455.69 2232963.54 208436.356 2233204.407 4.11 - 177.05 -4.02 -0.95 3246.36 .00 63.09 37.16 1768.25 1597.25 2615.18 2018.64 1348491.12 2233007.88 208471.788 2233248.742 3.85 173.83 -3.84 -0 .22 3303.13 90.00 60.75 37.45 1797.91 1626.91 2659.39 2052.32 1348525.87 2233051.26 208506.541 2233292.118 3.74 177.73 -3.71 0.46 3358.70 I 4254.00 58.60 37.55 1830/2 1659.22 2703.21 2085.95 1348560.56 2233094.25 208541.233 2233335.104 3.36 - 171.68 -3.36 0.16 3413.94 4318.00 57.39 37.34 1864.14 1693.14 2746.30 2118.94 1348594.60 2233136.52 208575.275 2233377.37 1.91 - 151.74 -1.89 -0.33 3468.20 4380.00 56.83 36.98 1897.81 1726.81 2787.79 2150.39 1348627.05 2233177.24 208607.727 2233418.086 1.03 176.66 -0.90 -0.58 3520.26 4444.00 54.87 37.12 1933.73 1762.73 2830.06 2182.30 1348659.98 2233218.71 208640.659 2233459.552 3.07 - 171.75 -3.06 0.22 3573.22 4507.00 ®MEMI 1970.94 1799.94 MaXIMMECE 1348691.50 2233258.60 =EgllNea/EI®' 3624.06 4571.00 50.86 r r IEMEEE®' MEMEMINEMME 2233298.16 MIEEMEMIKEEE=11111MEMENEMIMEEMME111 3674.35 4634.00 MEMMEM 2050.97 1879.97 WM. 2271.80 1348752.36 WEEMENNErmarmEggammnigm - 106.64 MEINIMMEI 3722.64 4696.00 2091.57 ®' 2987.58 2299.39 1348780.87 ® 1.68 MEMEMIKEM® 3769.50 4760.00 2133.60 1962.60 3027.09 2327.12 1348809.55 Emma.= EmwEgEEEN 0.85 : 159.42 WEEMINIEEM 3817.74 4824.00 48.68 =MOM 2175.75 2004.75 3066.65 2354.58_ 1348837.97 ®' 0.43 - 175.40 MIIMINIMEMI 3865.87 4886.00 WEEMBINEEM 2217.31 2046.31 MIME 2380.80 1348865.10 2233488.19 2.51 - 168.97 MEMIIIKEEMMEMEM 4950.00 MMEMMEIIIEM 2261.51 _ 2090.51 MUM 2406.98 1348892 20 2233525.71 :: 2.56 - 156.26 ® -0.69 3958.11_ 5013.00 MIME 33.89 2305.86 2134.86 ®' 2432.04 1348918.16 2233562.16 MMIIMEMMEEMEEM 0.92 1 '®' '® 4002.81 5077.00 43.29 34.42 2351.78 2180.78 3216.58 2457.06 1348944.07 2233598.42 208924.769 2233839.227 ®MOMMINI0MIIIM 4047.33 5140.00 41.25 34.22 2398.40 2227.40 3251.57 2480.95 1348968.81 2233632.82 208949.51 2233873.624 ® 176.60 MEEMEMEEM 4089.67 5204.00 39.33 34.40 2447.22 2276.22 3285.76 2504.27 1348992.96 2233666.43 208973.662 2233907.231 ®' r r '®° 4131.02 5268.00_ 37.66 34.22 2497.30 2326.30 3318.66 2526.73 1349016.21 2233698.77 208996.914 2233939.568 .milmEmos91mm1W1 is 4170.82 5331.00 37.62 33.98 2547.19 2376.19 3350.52 2548.30 1349038.55 2233730.10 209019.255 2233970.895 WEE® -0.06 MEM 4209.26 , 5395.00 37.58 34.05 2597.90 2426.90 3382.89 2570.14 1349061.17 2233761.92 209041.877 2234002.712 0.09 0.00 -0.06 MIll= 4248.26 ' 5459.00 37.58 34.05 2648.62 2477.62 3415.23 2592.00 1349083.81 2233793.72 209064.519 2234034.51 0.00 MEM 0.00 0.00 4287.26 5522.00 37.50 34.10 2698.57 2527.57 3447.02 2613.50 1349106.09 2233824.98 209086.8 2234065.767 0.1 • '® '® 0.08 4325.60 5586.00 37.50 MEE= 2749.35 2578.35 3479.23 2635.42 1349128.78 2233856.65 209109.492 2234097.434 0.26 -3.05 0.00 iECIMEM 649.00 37.73 111111MM 2799.25 2628.25 3510.98 2657.12 1349151.25 2233887.85 209131.964 2234128.631 0.37 -71.94 '® r r 4402.95 - 331 37.75 34.25 2849.86 2678.86 3543.34 2679.20 1349174.11 2233919.67 209154.825 2234160.448 0.10 118.64 MIEMINEEM 4442.09 .00 37.70 34.40 2899.69 2728.69 3575.17 2700.94 1349196.62 2233950.96 209177.337 IIEEMEES 0.17 -73.49 -0.08 MEM 4480.61 _ ;39.00 37.72 34.29 2949.53 MEM 3606.99 2722.68 1349219.13 2233982.24 209199.848 2234223.013 0.11 1 93.24 r r '® 4519.11 5902.00 37.71 34.59 2999.37 2828.37 3638.77 2744.47 1349241.69 2234013.48 209222.41 2234254.25 0.29 1 31.48 MIKIEMM21,M 4557.62 5965.00 37.75 MOM 3049.20 2878.20 3670.50 2766.37 1349264.35 2234044.67 209245.072 2234285.437 0.07 110.83 0.06 0.06 4596.15 6028.00 _37.66 35.02 3099.04 2928.04 3702.13 2788.37 1349287.12 2234075.75 209267.843 2234316.514 0.40 -47.82 INEM=X 4634.66 6092.00 _ 37.76 1 34.84 3149.67 2978.67 3734.23 2810.79 1349310.31 2234107.29 209291.035 2234348.051 0.23 -79.19 WIEZEIMIEMEMEM 6155.00 37.78 34.67 MB= 3028.47 MM. 2832.78 1349333.07 2234138.45® 2234379.208 - 111.09 11111EMMEMIEMEM 6218.00 37.74 34.50 3249.28 3078.28 3797.69 2854.68 MEM= 2234169.67 209336.468 2234410.425 WEIM®' - 0.06 '®®' ' _ 6282.00 37.77 34.57 3299.88 3128.88 3829.97 2876.90 r r 2234442.153 0.08 MEIMIIIIIMEMMEM 4790.07 6345.00 37.82 34.83 3349.66 3178.66 3861.71 2898.88 1349401.48 2234232.59 ' "® 2234473.34 WEEMINEEM 0 '®' 4828.65 6408.00 37.75 34.88 MEM 3228.45 3893.39 2920.94 1349424.31 2234263.72 209405.043 2234504.467 '®ERFEM '® r r 6472.00 37.64 35.28 3450.09 3279.09 3925.41 2943.43 1349447.57 2234295.19 209428.305 2234535.934 IMUMEMEMEMOSIMIMEMI 4906.35 _ 6535.00 37.66 1 34.86 3499.98 3328.98 3956.91 2965.54 1349470.44 2234326.14 MIMIKEM 2234566.881 MXIMMETKIIMIIMMIEMEEMBI 6599.00 37.55 34.28 3550.68 3379.68 3989.07 2987.70 1349493.38 2234357.74 2234598.478 MEM -68.85 MIMMIIMEEM 4983.85 _ 6663.00 37.65 33.86 3601.39 3430.39 4021.41 3009.57 1349516.04 4 2234389.55 209496.779 2234630.285 '®[ -0 .66 5022.86 6727.00 37.51 MEEKEMIIIIMUM 3481.11 4053.90 3031.20 1349538.45 2234421.50 209519.191 2234662.232 0.46 IMEMEP4 -0.66 5061.84 __ _ 6789.00 37.51 IMEEEMEEEEM 3530.29 4085.51 3051.85 1349559.86 2234452.60 209540.603 2234693.33 '® '® 0 r®" 5099.52 -- 6852.00 $ MEMMENIZI 3580.24 4117.83 3072.58 1349581.37 2234484.40 209562.114 2234725.127 MINIMI -90.03 '® '®MEMEM 6901.00 32.43 3790.06 3619.06®' 3088.62 1349598.02 2234509.22 209578.766 0.09 0.00 0.00 '®® 6953.00 37.59 32.43 3831.27 3660.27 4169.82 3105.63 1349615.68 2234535.57 209596.427 2234776.292 0.00 0.00 0.00 0.00 5199.26 Projected Data - NO SURVEY Page 2 of 2 M NlArethon !O perations Summary Report ' MARATHON ® Oi1Company Well Name: PAXTON 4 Qtr /Qtr, Block, Sec, Town, Range Field Name License No. State /Province Country NW /NW, Sec. 13, T1S, R14W NINILCHIK - PAXTON 210064 ALASKA USA Daily Operations Report Date: 6/5/2010 Job Category: DRILLING 24 Hr Summary Accepted rig from maintenance on the Susan Dionne pad 6/4/2010 06:00hrs. Move the rig from the Susan Dionne pad and R/U the rig. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF Accepted rig from maintenance on the Susan Dionne Pad @ 06:00 hrs 6/4/2010. PJSM. Move the sub base, carrier, mud boat, pump room, pits, generator house, boiler house and water house. Spot the sub base and scope up. Spot the mud boat, pump room, pit room, generator house. Prepare to move the camp. Set the boiler house and water tank module. 12:00 18:00 6.00 RURD RIG AF PJSM. Spot the carrier, plug in electrical cables. Level the carrier and R/U the turn buckles. Prep the carrier for raising. Suck the pits together. R/U the dresser sleeves. Mount the lights on the Pits, pump room and generator house. Spot the break room, change house, Co. man/Toolpusher living quarters, office, Mechanics shop, parts house, electrical shop, welding shop. Hook up the air, water, and steam lines. Rig up electrical and water to camp. 18:00 00:00 6.00 RURD RIG AF PJSM for the crane work. Crane in the derrick house, fuel tank, DS grey iron and diagonals, dog house, V -door wind walls, flow line, poor boy degasser, ODS grey iron and diagonals, and the choke house. 00:00 06:00 6.00 RURD RIG AF PJSM. Cont. with the crane work, ODS stairs and landing, stairs to the pump room, cuttings tank, centrifuge and storage connex. Raise derrick. Crane in the back floor plate and back wind walls. Fill the camp water and the rig water tank. Plug in the carrier, choke house, parts house, mechanic and electrical shops. Unload trailers. Plug in storage and centrifuge houses. Hook up the panic line to the choke manifold. Report Date: 6/6/2010 Job Category: DRILLING 24 Hr Summary Cont. to R/U the rig and spot and unload trailers. Install the starting head on the conductor. Circ. fluid in the pits. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF PJSM. R/U brake handle. Set matting boards for the #3 pump and for oil products. R/U the service lines. Hook up air and water lines. R/U the shock hoses to the mud pump lines. Set the hanson tank. Scope up the derrick and R/U the guide wires. Spot and unload trailers. Spot the trip tank. Set pump #3. Receive fuel. 12:00 18:00 6.00 RURD RIG AF PJSM. Troubleshoot tugger hydraulics(up on the blue tugger at the V -door controls does not function). R/U carrier bows and tarps. R/U #3 mud pump and plug in electrical cables. Add hydraulic oil to the carrier hydraulic tank. R/U lights on the choke house and the dog house. Set lower BOP connex stairs and landing. Spot and unload trailers. 18:00 00:00 6.00 RURD RIG AF PJSM. Troubleshoot tugger hydraulics(up on the blue tugger at the V -door controls does not function). Plug in the driller's console and the #3 mud pump. R/U auto driller. Spot mudlogger's and MWD units. R/U cellar grating. Weld in base plate for the 20" conductor. Make final cut and dress the conductor for the starting head installation. Flush the flowline jets, #1, #2, #3 MP,and the overhead lines. Found a leak in the #3 pit suction line. Repair the #1 beaver strainer. Unplug gun lines(scale from the suction lines plugging the lines). Cont. to spot and unload trailers. 00:00 01:30 1.50 NUND WLHD AF PJSM. Install Vetco 20" starting head. Test to 380psi /10min(OK). R/U cylinder socks on the scoping cylinders. 01:30 06:00 4.50 RURD RIG AF PJSM. Weld on gussets for the conductor base plate. Weld in 2" nipple for the conductor drain line. Bleed day tanks. R/U beaver slide- stairs and hand rails. Prep derrick to P/U torque tube. Prep to weld incomplete weld in #3 pit suction line. Change out receptible for the BOP connex power cable. Clean out sumps in the mud pits. Cont. to spot and unload trailers. Note: Up function is not working on the blue tugger at the V -door control station. JSA's will be adjusted to use a signal man when required to use the up control at the driller's console. www.peloton.com Page 1/21 Report Printed: 11/4/2010 M ryas • Operations Summary Report ,a ad+!nnntox ® OilCompany Well Name: PAXTON 4 Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 150.00 21.00 6/8/2010 Daily Operations Report Date: 6/7/2010 Job Category: DRILLING 24 Hr Summary Cont. to R/U. R/U top drive. Mix mud. N/U diverter. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF PJSM. Hang the torque tube and the T -bar. Weld out the suction line in pit#3. R/U the panic line. Change out the electric plug on the DD living quarters. Level the area for the mud boxes. Fill the pits with water and prep to mix mud. 12:00 18:00 6.00 RURD RIG AF PJSM. Hang the top drive torque tube and install the turnbuckles. Mix spud mud. Laser level the torque tube. R/U the slide for the top drive. R/U the top drive service loop. Install the bale clamps. Test run mud pumps 1,2, and 3 engines. Find that 'Land 2 charge pumps are not functioning properly. Trouble shoot the problem with the charge pumps(mud pump charge pumps run before the mud pump rheostat is activated). R/U power to to the MI living quarters and water tank. R/U gaitronics communication system. Test mud pumps 1,2 and 3 rod wash, flush and lube pumps. 18:00 00:00 6.00 RURD RIG AF PJSM. Install shaker screens. Install bales on the top drive. Cont. to trouble shoot the #1 and #2 charge pumps. Cont. to mix spud mud. Prime the #3 mud pump. Hook up the koomey lines. Prep the diverter stack for N /U. N/U the diverter stack. 00:00 06:00 6.00 RURD RIG AF PTSM. N/U the diverter. Install the flowline work platform. R/U the kill line hose. N/U the Bell Nipple. Install the trip tank valve actuator. R/U the kill line to the conductor. Mix spud mud. Trouble shoot the problem with the mud pump charge pumps(charge pumps run before the pump rheostat is activated). Report Date: 6/8/2010 Job Category: DRILLING 24 Hr Summary R/U rig. N/U the diverter line. Mix mud. Function test the diverter system. P/U DP. Set containment for cuttings containers. M/U BHA. Spud well, Drill F/117' to 140'. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF PJSM. N/U the diverter knife valve. N/U the diverter line. Install the mouse hole. Trouble shoot the driller's PLC and reset rheostats for the #1 and #2 mud pumps( Issue with the #1 and #2 charge pumps solved). Troubleshoot and find problem with the "V" door hydraulics(hydraulic lines crossed, repaint color code on the connections). R/U the mud manifold, bleeder line and fill up line. R/U the tongs and spinners. Test run mud pumps 1,2, and 3(OK). R/U line for the flowline jets. 12:00 18:00 6.00 RURD RIG AF PJSM. R/U elevators and test link tilt. R/U manual trip tank gauge. N/U end piece of diverter line. R/U monkey board. Test rotation on the top drive with the #1 and #2 Dennison pumps. Remove drive line from #1 carrier engine to the Dension pump. Repair the float on the trip tank. Test the grabber interlock. Test the chicken brake. Check the COM. Inspect the saver sub. 18:00 20:30 2.50 RURD RIG AF PJSM. Test diverter system, gas alarms, and PVT system. H2S alarm light not functioning. Test witnessed by Jeff Jones of the AOGCC. Lay liner for the cuttings boxes. 20:30 22:30 2.00 PULD DP AF PJSM. Drift, strap and P/U 60jnts 5" DP. 22:30 00:00 1.50 RURD RIG AF PJSM. R/U geolograph. Inspect derrick. Test overfill alarm on trip tank. Load HWDP on pipe racks. Troubleshoot and repair the H2S alarm light and test(ok). Set vacuum system and cutting boxes in containment. 00:00 02:00 2.00 PULD DP AF P/U 5" HWDP. 02:00 02:30 0.50 SAFETY MTG AF Pre spud safety meeting with all personnel on the rig. Discuss P/U BHA and R/U Expro wireline to run Gyro surveys. 02:30 04:00 1.50 PULD _ BHA AF P/U bit and directional BHA. 04:00 05:00 1.00 RURD ELEC AF R/U Expro electric line. 05:00 05:30 0.50 TRIP DP AF Circ. hole and inspect riser and diverter system for leaks(OK). www.peloton.com Page 2/21 Report Printed: 11/4/2010 Marathon Operations Summary Report t �utttarxoa ® O1l Company Well Name: PAXTON 4 Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 150.00 21.00 6/8/2010 8/11/2010 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 05:30 06:00 0.50 DRILL ROT AF Spud well @ 05:30 6/8/2010. Drill 12 1/4" hole F/117' to 140' ART= .5hrs. 350gpm 350psi 7ORPM Daily Operations Report Date: 6/9/2010 Job Category: DRILLING 24 Hr Summary Drill F/140' to 336'. POOH to CSG shoe. Repair top drive grabber box suspension system. L/D UBHO sub and P/U MWD. RIH and Drill F/336' to 600'. Ops Trouble Start lime End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 CIRC MUD TA NDMD PJSM. Circulate intermittently while unplugging drill cuttings(mainly gravel) from the flowline. 07:30 10:00 2.50 DRILL ROT AF Drill 12 1/4" section F/140' to 155'(very slow rough drilling). ART= 1.3hrs 10:00 10:30 0.50 SURVEY ORIT AF Run Gyro survey on E -line. 10:30 12:30 2.00 DRILL ROT AF Drill 12 1/4" build section F/155' to 215'(155' to170' slow and rough drilling) AST= 1.9hrs. 400gpm 350psi 8.8MW 80vis P/U 35K S/O 35K Rot 35K. 12:30 13:00 0.50 SURVEY ORIT AF PJSM. Run Gyro survey on E -line. 13:00 13:30 0.50 DRILL ROT AF Drill 12 1/4" build section F/215' to 275' AST= .25hrs. 400gpm 350psi 8.8MW 80 Vis. 13:30 14:00 0.50 SURVEY ORIT AF Run Gyro survey on E -line. 14:00 14:30 0.50 DRILL ROT AF Drill 12 1/4" build section F/275' to 336' AST= .25hrs 400gpm 400psi 8.8mw 80vis P/U 35K S/O 35K ROT 35K. 14:30 15:00 0.50 SURVEY ORIT AF Run Gyro survey on E -line. 15:00 15:30 0.50 REPAIR RIG TA MSTD Grabber box suspension system damaged during make up of a connection. Inspect damage and secure grabber box for a trip to the CSG shoe. 15:30 16:30 1.00 TRIP DP TA MSTD POOH to CSG shoe to repair damaged top drive grabber suspension system. Tight hole F/336' to 150' had to pump out to 150'. 16:30 21:30 5.00 REPAIR RIG TA MSTD PJSM. Repair the suspension system for the grabber box. 21:30 22:30 1.00 TRIP BHA AF L/D UBHO sub. 22:30 23:30 1.00 PULD BHA AF PJSM. P/U MWD and scribe. P/U CSDP's. 23:30 00:00 0.50 TRIP DP AF PJSM. RIH and tag © 313'. 00:00 01:00 1.00 CIRC MUD TA MSDE MWD not syncing, troubleshoot MWD system. Find that software filters were not set correctly. Reset filters and test MWD(OK). 01:00 06:00 5.00 DRILL ROT AF Drill 12 1/4" build section F/336 to 600'. AST =2hrs ART =.3hrs 500GPM 900psi 45RPM 1 -2K Ft-lb 8.9MW 80vis WOB 5 -15K P/U 55K S/O 45K ROT 50K Report Date: 6/10/2010 Job Category: DRILLING 24 Hr Summary Drill 12 1/4" build section from 600' to 1520'. Circulate approx. 2 B/U until shakers clean. Perform wiper trip from 1520' to 169' encountering & working tight hole at 805'. TIH to bottom and resume drilling operations from 1520' to 1709'. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 412' of 12 1/4" build section from 600' to 1012'. Drlg Parameters: 60 rpm, 12 -20 klbs WOB, 550 gpm, 1350 psi, 2 -4 kft -Ibs TQ, P/U - 65 klbs, S/0 - 55 klbs, ROT - 60 klbs. No gain /loss. ART = 1.1 hrs & AST = 2.3 hrs. 12:00 19:30 7.50 DRILL ROT AF Drill 508' of 12 1/4" build section from 1012' to 1520'. Drlg Parameters: 60 rpm, 12 -20 klbs WOB, 550 gpm, 1350 psi, 2 -4 kft-Ibs TQ, P/U - 66 klbs, S/O - 56 klbs, ROT - 57 klbs. No gain /loss. ART = 1.7 hrs & AST = 2.6 hrs. 19:30 20:00 0.50 CIRC MUD AF Circulate & Condition wellbore in preparation for wiper trip (Approx. 2 B/U while observing shakers). Parameters: 120 rpm, 620 gpm, 1520 psi. 20:00 23:00 3.00 TRIP WIPR AF Perform wiper trip from 1520' to 169'. Note: Encountered tight hole conditions at 805'. Worked & Pumped out 2 stands before resuming normal operations. 23:00 23:30 0.50 SERVIC RIG AF Daily rig maintenance & inspection. 23:30 00:00 0.50 TRIP WIPR AF TIH from 169' to 1520' (No fill). Note: Encountered tight hole conditions at 805'. Circulated & Oriented motor to high side before passing through and resuming normal tripping operations. 00:00 06:00 6.00 DRILL ROT AF Drill 189' of 12 1/4" build section from 1520' to 1709'. DrIg Parameters: 60 rpm, 15 -25 klbs WOB, 550 gpm, 1400 psi, 2 -4 kft -Ibs TQ, P/U - 60 klbs, S/O - 50 klbs, ROT - 55 klbs. No gain /loss. ART = 1.7 hrs & AST = 2.2 hrs. www.peloton.com Page 3/21 Report Printed: 11/4/2010 6MA 1 - i -- )1k Maw, ( *Operations Summary Report IP RAN ® all COmpany Well Name: PAXTON 4 Daily Operations Report Date: 6/11/2010 Job Category: DRILLING 24 Hr Summary Drill 806'm of 12 1/4" build section from 1709' to 2515 (TD). Circulate approx. 2 B/U (with hi -vis sweep) until shakers clean. Perform wiper trip from 2515' to 128' encountering & working tight hole at 1933'. Repair worn out driveline on #2 denison pump that provides power to the topdrive. TIH back to bottom. Ops Trouble Start Time End Time Dur (hrs) Ops Cale Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 316' of 12 1/4" build section from 1709' to 2025'. Drlg Parameters: 60 rpm, 20 -25 klbs WOB, 550 gpm, 1250 psi, 4 -5 kft-Ibs TQ, P/U - 65 klbs, S/O - 45klbs, ROT - 54 klbs. ART = 2.8 hrs & AST = 1.2 hrs. 12:00 20:00 8.00 DRILL ROT AF Drill 490' of 12 1/4" build section from 2025' to 2515'. DrIg Parameters: 60 rpm, 20 -25 klbs WOB, 550 gpm, 1600 psi, 5 -6 kft-lbs TQ, P/U - 65 klbs, S/O - 46 klbs, ROT - 52 klbs. ART = 4.3 hrs & AST = 1.2 hrs. 20:00 21:00 1.00 CIRC MUD AF Circulate & Condition wellbore in preparation for wiper trip (Approx. 2 B/U while observing shakers with an inital 100+ vis sweep). Parameters: 85 rpm, 600 gpm, 1550 psi. 21:00 03:00 6.00 TRIP WIPR AF Perform wiper trip from 2515' to 128'(SLM, no correction). Note: Encountered tight hole conditions at 1933'. Worked & Backreamed 1 stands before resuming normal operations. 03:00 03:30 0.50 SERVIC RIG AF Daily rig maintenance & inspection. 03:30 04:30 1.00 SERVIC RIG TA MSTD Replace driveline on denison pump #2 that powers the top drive due to a compromised u- joint. 04:30 06:00 1.50 TRIP WIPR AF TIH from 128' to 2515'. Report Date: 6/12/2010 Job Category: DRILLING 24 Hr Summary Circulate & Condition wellbore with hi -vis sweep & 3% lube. POOH to surface (hole in good condition). L/D BHA. R/U Weatheford casers, Run 9 5/8" surface csg (Shoe - 2494' & Float - 2409'), R/D casing equipment & R/U BJ cementers, Cement surface csg. Begin wash up & rig down operations. Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 CIRC MUD AF PJSM. Circ. shaker clean 455GPM 1050PSI 100RPM. Max gas 350 units. MW 9.5PPG after circulating. 07:00 07:30 0.50 CIRC MUD AF PJSM. Pump 40bbls Hi -vis sweep w /nut plug. 600GPM, 100RPM, 1550psi. Sweep indicated gauge hole. Flow check, losses 2BPH. 07:30 08:30 1.00 CIRC MUD AF Spot mud w /3% Low Torque in the hole 365GPM 700psi 7ORPM. Flow check, losses 2BPH. 08:30 11:30 3.00 TRIP DP AF PJSM. POOH w /5" DP. Pulled 10k over at 2413, worked through spot with no issues. Cont. to POOH to 170' hole in good condition. 11:30 13:30 2.00 TRIP BHA AF PJSM. POOH LJD BHA and bit. 13:30 19:30 6.00 RUN CSG AF PJSM. C/O to long bales. R/U spider elevators and slips. Prep floor for running casing. Fold out stabbing board. R/U CSG tongs. 19:30 00:30 5.00 RUN CSG AF M/U shoe track and check floats (OK). Cont. to run 9 5/8" 40# L -80 Butt CSG (60 joints total) to 2494' (float collar @ 2409'). Ran 24 spiraglider centralizers and 2 bow centralizers. 00:30 03:00 2.50 CIRC MUD AF Circ. 9 5/8" CSG 275GPM, 350PS1. Lower YP of mud to an 11. 03:00 03:30 0.50 SAFETY MTG AF Hold safety meeting with BJ cementers and all involved personel. Identify and review hazards associated with the upcoming cement job. 03:30 05:30 2.00 PUMP CMT AF Pump 20 bbls Mud Clean 11 preflush with red dye. Pump 5bbls water ahead Test cement lines to 2500psi -- OK. Drop bottom plug. Mix and pum 601 sxs Type 1 cement with 22% bwoc LW -6, 20% bwoc MPA -1, 2% bwo 1% bwoc A -2, 0.3% bwoc CD 32, 0.5% bwoc ASA -301, 0.05% bwoc Static free, and 1 ghs FP -6L to yield 282 bbls of 11.8 ppg slurry. Drop top plug and kick out w /5bbls water fro J unit. Switch to rig pumps and displace with 179 bbls of 9.4 ppg mu Bu ped plug with1500psi, 1000psi over last displacement pressure. 95 Is cement returned to surface (100% returns). Check floats -- GOOD. ent in place at 05:30 hrs. Note Reciprocate casing 8' untill 100 bbls cement in the annulus. 05:30 06:00 0.50 RURD CMT AF - Flush diverter with retarder water & Clean cellar. Wash up & Rig down BJ cementers. Prepare to dispose of spud mud. Report Date: 6/13/2010 Job Cate .o : DRILLING 24 Hr Summary Ready rig floor for drilling activities, Rig down and clean cellar, Cut and laydown 9 5/8" csg, Nipple down diverter and associated lines /equipment, Install Vetco Gray wellhead and test to 2500 psi -- GOOD, Commence BOPE nipple up operations. www.peloton.com Page 4/21 Report Printed: 11/4/2010 M Marathon • Operations Summary Report MARATHON ® Oil Company Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 WAITON CMT AF PJSM. R/U DP tongs and spinners. Clean and organize rig floor. Clean and organize the cellar area. PJSM. R/D bleeder, fill up, and trip tank lines. Remove trip tank valve actuator. Hot bolt diverter stack. Empty mud pits. 12:00 13:30 1.50 NUND EQIP AF Cont. rigging down cellar in preparation for nippling down diverter and prepping casing for the wellhead. Cont. to empty mud pits. 13:30 18:00 4.50 NUND BOPE AF PJSM. Remove knife valve. Rough cut 9 5/8" csg & laydown remainder of joint. Nipple down diverter. Remove starter head. Cut conductor per Vetco Gray instruction. Cont. to empty mud pits. 18:00 21:30 3.50 NUND WLHD AF Perform final cut on 9 5/8" csg and dress the face. Install Vetco Gray wellhead (Note: (1) stand of HWDP & the weight of the topdrive was required to properly seat the wellhead). Pressure test seal of wellhead at 2500 psi for 10 mins -- GOOD. Mix flopro mud. 21:30 06:00 8.50 NUND BOPE AF Restore torque tube to proper drilling position. Change out long bails & casing elevators to drilling units. N/U 11" X 13 5/8" 5M DSA. N/U 13 5/8" 5M X 24" Spacer spool. N/U 13 5/8" 5M A,Rd,S,R BOP. Build & condition Flo -Pro mud. Daily Operations Report Date: 6/14/2010 Job Category: DRILLING 24 Hr Summary I. Test BOPE to 250/2000 psi -- GOOD, P/U 40 jts. DP, Test 9 5/8" csg to 1500 psi -- GOOD, M/U clean -out assy, TIH & drill float equip., Drill 20' new formation, Displace wellbore to Flo -Pro mud, perform FIT to 15 ppg EMW, POOH to surface. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 RURD OTHR AF PJSM. Set pipe racks and load with 5" DP. Cont. to mix mud. P/U Baker BPA(autotrack flow diverter equipment) and R/U. R/U BOPE test equipment. 08:30 12:00 3.50 TEST BOPE AF PJSM. Test lower 5" pipe rams, 2 7/8" X 5 1/2" upper variable rams, annular, upper and lower top drive valves, blind rams, check valve, inside - and outside kill line valves, manual choke line valve HCR valve, floor valve, dart valve, and 1 -12 CMV's to 250 /2000psi. Perform koomey performance test. BOP test witnessed by Bob Noble AOGCC. 12:00 13:30 1.50 RUNPUL WBSH AF PJSM. Pull test plug and set wear bushing. 13:30 16:30 3.00 PULD DP AF PJSM. P/U 40 joints 5" DP and rack back. 16:30 17:30 1.00 TEST CSG AF PJSM. Test 9 5/8" CSG to 1500psi /30min OK. 17:30 18:30 1.00 PULD BHA AF PJSM. Pick up /Make up clean -out assy (BHA #3). Components: - 8 1/2" HC Mill Tooth Bit - 6 3/4" BHI X -Treme Motor (Straight) - (2) BHI NMDC 18:30 23:30 5.00 TRIP DP AF PJSM. TIH with clean -out assy to 2410'. Hold BOP drill(choke drill). 23:30 01:30 2.00 DRILL CMT AF Tag float collar at 2410'. Drill cement & float equipment. Parameters: 50 rpm, 400 gpm, 400 psi, 1 -3 klbs WOB, 2 -3 kft-Ibs TQ. 01:30 02:00 0.50 DRILL ROT AF Drill 20' new formation from 2515' to 2535'. Parameters: 50 rpm, 400 gpm, 400 psi, 15 -20 klbs WOB, 4 -5 kft-Ibs TQ. P/U - 70 klbs, S/O - 38 klbs, ROT - 50 klbs. 02:00 03:30 1.50 CIRC MUD AF Pump 20 bbl fresh water spacer followed by 40 bbl 100+ vis sweep. Displace wellbore with Flo -Pro mud system. 03:30 04:00 0.50 TEST LOT AF Perform FIT to 15 ppg EMW by holding 460 psi for 10 minutes -- GOOD. 04:00 06:00 2.00 TRIP DP AF POOH to surface with clean -out assy. Prepare to pick up intelligent BHI tools. Report Date: 6/15/2010 Job Category: DRILLING 24 Hr Summary Rig up BHI BPA. Make up & Communicate with BHI FE tools and AutoTrak (BHA 4). RIH & Correlate block height to FE tools. Drill 495' of 8 1/2" tangent section from 2535' to 3030'. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Staff Code Comment 06:00 07:30 1.50 RURD OTHR AF PJSM. R/U BPA(flow diverter for the autotrak). Install pressure sensor on the stand pipe. 07:30 12:00 4.50 PULD BHA AF PJSM. P/U Bit and Autotrak , ontrak, ORD, CCD and soundtrack. Plug in and check the tools. 12:00 16:30 4.50 PULD BHA AF PJSM. Plug in and check the Soundtrak. Load sources. M/U Magtrak and plug in. M/U filter sub. Test MWD and LWD. RIH w /5" HWDP. www.peloton.com Page 5/21 Report Printed: 11/4/2010 Marathon • Operations Summary Report amnia Oil M Company Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 16:30 18:30 2.00 PULD DP AF PJSM. P/U 5" DP while RIH w /Autotrak. 18:30 19:00 0.50 TRIP DP AF Fill drill string & commence washing to bottom from 2471' to 2535. 19:00 20:00 1.00 SURVEY DIR AF Calibrate & Correlate block height to BHI formation evaluation tools. 20:00 00:00 4.00 DRILL ROT AF Drill 165 of 8 1/2" tangent section from 2535' to 2700'. DrIg Parameters: 50 rpm, 8 -10 klbs WOB, 400 gpm, 1100 psi, 4 -7 kft-Ibs TQ. P/U - 75 klbs, S/O - 32 klbs, ROT - 46 klbs. ART = 2.3 hrs. Decision was made to begin adding lubricant (Target 3 %). 00:00 06:00 6.00 DRILL ROT AF Drill 330' of 8 1/2" tangent section from 2700' to 3030'. Drlg Parameters: 50 rpm, 5 -15 klbs WOB, 460 gpm, 1150 psi, 4 -7 kft-Ibs TQ. P/U - 75 klbs, S/O - 30 klbs, ROT - 46 klbs. ART = 4.4 hrs. Continue adding lubricant. Daily Operations Report Date: 6/16/2010 Job Category: DRILLING 24 Hr Summary Drill 1023' of 8 1/2" production hole from 3030' to 4053'. Perform wiper trip from 3799' thru the shoe to 2460'. Due to tight hole, decision was made to pump & backream from 3393' on. Commence racking & strapping 4 1/2" liner and tubing. Ops - Trouble Start Time End Time Dur ( hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 341' of 8 1/2" tangent section from 3030' to 3371'. Drlg Parameters: 60 rpm, 5 -15 klbs WOB, 460 gpm, 1250 psi, 5 -6 kft-Ibs TQ. P/U - 75 klbs, S/O - 30 klbs, ROT - 46 klbs. ART = 4.6 hrs. 12:00 20:00 8.00 DRILL ROT AF Drill 428' of 8 1/2" production hole from 3371' to 3799'. DrIg Parameters: 60 rpm, 8 -15 klbs WOB, 460 gpm, 1250 psi, 5 -6 kft-Ibs TQ. P/U - 72 klbs, S/O - 32 klbs, ROT - 49 klbs. ART = 6.0 hrs. 20:00 20:30 0.50 CIRC MUD AF Circulate and condition welibore for upcoming wiper trip (Approx. 2 B /U) until shakers clean while reciprocating and rotating the drill string. Parameters: 80 rpm, 500 gpm, 1300 psi. Check for flow - STATIC. P/U - 71 klbs, S/O - 39 klbs, ROT - 50 klbs. 20:30 00:00 3.50 TRIP WIPR AF Perform wiper trip from 3799' thru the shoe to 2460'. Began experiencing tight hole at 3393'. The decision was made to pump & backream out of the hole due the lack of downweight, stabilized BHA, and sticky clay formations. 00:00 00:30 0.50 SERVIC RIG AF Daily rig maintenance & inspection. 00:30 01:30 1.00 TRIP WIPR AF RIH from 2460' to 3798' (Bottom). No tight hole encountered. 01:30 06:00 4.50 DRILL ROT AF Drill 254' of 8 1/2" production hole from 3799' to 4053'. DrIg Parameters: 60 rpm, 8 -15 klbs WOB, 460 gpm, 1250 psi, 5 -7 kft-Ibs TQ. P/U - 80 klbs, S/O - 40 klbs, ROT - 50 klbs. ART = 3.6 hrs. Report Date: 6/17/2010 Job Category: DRILLING 24 Hr Summary Drill 842' of 8 1/2" production hole from 4053' to 4895'. Troubleshoot AutoTrak steering head failure. TOOH to surface backreaming from 4730' to 3400'. Laydown & Rackback BHI FE tools and prepare to replace AutoTrak steering head unit with spare on location. Ops Trouble Start Time End lime Dur ( hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 367' of 8 1/2" production hole from 4053' to 4420'. Drlg Parameters: 60 rpm, 8 -15 klbs WOB, 460 gpm, 1400 psi, 5 -7 kft-Ibs TQ. P/U - 85 klbs, S/O - 45 klbs, ROT - 56 klbs. ART = 4.6 hrs. 12:00 20:00 8.00 DRILL ROT AF Drill 475' of 8 1/2" production hole from 4420' to 4895'. Drlg Parameters: 60 rpm, 8 -15 klbs WOB, 460 gpm, 1550 psi, 5 -7 kft-Ibs TQ. P/U - 98 klbs, S/O - 55 klbs, ROT - 70 klbs. ART = 6.4 hrs. Note: At approx. 4800' it was observed that the AutoTrak steering head had began porpoising. The near -bit inclinations when plotted displayed this behavior. Upon further investigation it was discovered that (2) steering ribs were unable to reach their target pressures, leaving (1) rib to perform steering activities. 20:00 21:00 1.00 INSPCT BHA TA MDMT Troubleshoot compromised AutoTrak steering head. Function test tool in Steer, Hold, and Auto modes. Complete diagnostic communications with steering unit. During these processes, it was observed that the pressures reaching the (2) ribs in question had continued to weaken. The decision was made to trip out and pick up the spare AutoTrack assy. 21:00 22:00 1.00 CIRC MUD TA MDMT Circulate and condition welibore for upcoming trip (Approx. 2 B /U) until shakers clean while reciprocating and rotating the drill string. Parameters: 80 rpm, 500 gpm, 1500 psi. Check for flow - STATIC. P/U - 98 klbs, S/O - 55 klbs, ROT - 70 klbs. www.peloton.com Page 6/21 Report Printed: 11/4/2010 M Marathon *Operations Summary Report A AAATNON ® Oil Company Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 22:00 04:00 6.00 TRIP DP TA MDMT Perform trip from 4895' to 230' (BHI BHA components). Began experiencing tight hole at 4730'. The decision was made to pump & backream out until previously backreamed hole was reached. From 3400' on the trip was completed on the elevators without encountering any tight hole conditions. p 9 Y 9 04:00 06:00 2.00 PULD BHA TA MDMT PJSM. Inspect, rack back, and laydown BHI FE tools in preparation to replace AutoTrak steering head unit with spare on location. Daily Operations Report Date: 6/18/2010 Job Category: DRILLING 24 Hr Summary Pick up replacement Autotrak unit and make up BHI FE tools (BHA #5), TIH to bottom (4895') without encountering any tight hole conditions, Drill 885' of 8 1/2" production hole from 4895' to 5780'. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 PULD BHA TA MDMT Finish downloading on track, break off bit and lay down Autotrak no visuabale damage to Autotrak. 07:00 11:00 4.00 PULD BHA TA MDMT Pick up replacement Autotrak unit and make up 8 1/2" HCD 605Z bit (RR1). Continue picking up BHI FE tools from walk & derrick. Surface test and communicate with BHI smart tools at first 4 -1/2" connection - -GOOD. 11:00 12:30 1.50 TRIP DP TA MDMT RIH from surface to 2469'. 12:30 13:00 0.50 SERVIC RIG TA MDMT Daily rig maintenance & inspection. 13:00 15:00 2.00 TRIP DP TA MDMT RIH from 2469' to 4875' (fill pipe at 3041' & 4054'). No tight hole was encountered. Break circulation, communicate Autotrak steering head & FE tools, and wash 20' to bottom (1' fill). 15:00 00:00 9.00 DRILL ROT AF Drill 552' of 8 1/2" production hole from 4895' to 5447'. Drlg Parameters: 60 rpm, 8 -15 klbs WOB, 460 gpm, 1550 psi, 6 -9 kft-Ibs TQ. P/U - 118 klbs, S/O - 60 klbs, ROT - 76 klbs. ART = 7.3 hrs. 00:00 06:00 6.00 DRILL ROT AF Drill 333' of 8 1/2" production hole from 5447' to 5780'. DrIg Parameters: 60 rpm, 8 -15 klbs WOB, 460 gpm, 1550 psi, 6 -9 kft-Ibs TQ. P/U - 130 klbs, S/O - 65 klbs, ROT - 80 klbs. ART = 4.6 hrs. Report Date: 6/19/2010 Job Category: DRILLING 24 Hr Summary Drill 807' of 8 1/2" production hole from 5780' to 6587'. Perform wiper trip from 6018' to 4623'. Due to tight hole, decision was made to pump & backream from 5820' until previously wiped hole was reached. Change out worn grabber dies on topdrive. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 10:30 4.50 DRILL ROT AF Drill 238' of 8 1/2" production hole from 5780' to 6018'. Drlg Parameters: 60 rpm, 8 -17 klbs WOB, 460 gpm, 1600 psi, 7 -10 kft-Ibs TQ. P/U - 135 klbs, S/O - 68 klbs, ROT - 85 klbs. ART = 3.8 hrs. 10:30 11:30 1.00 CIRC MUD AF Circulate and condition wellbore for upcoming wiper trip (Approx. 2 B /U) until shakers clean while reciprocating and rotating the drill string. Parameters: 80 rpm, 500 gpm, 1700 psi. Check for flow - STATIC. P/U - 135 klbs, S/O - 68 klbs, ROT - 80 klbs. 11:30 12:30 1.00 CHANGE EQIP AF Replace compromised grabber dies on topdrive. 12:30 17:30 5.00 TRIP WIPR AF Perform wiper trip from 6018' to 4623'. Began experiencing tight hole at 5820'. The decision was made to pump & backream out until previously backreamed hole was reached. From 4730' on the trip was completed on the elevators without encountering any tight hole conditions. 17:30 18:30 1.00 TRIP DP AF RIH from 4623' to 6018'. No tight hole conditions or fill encountered. Total B/U gas -- 485 units. 18:30 00:00 5.50 DRILL ROT AF Drill 252' of 8 1/2" production hole from 6018' to 6270'. Drlg Parameters: 60 rpm, 8 -17 klbs WOB, 460 gpm, 1600 psi, 7 -10 kft -Ibs TQ. P/U - 137 klbs, S/O - 70 klbs, ROT - 88 klbs. ART = 4.8 hrs. 00:00 06:00 6.00 DRILL ROT AF Drill 317' of 8 1/2" production hole from 6270' to 6587'. DrIg Parameters: 60 rpm, 8 -17 klbs WOB, 460 gpm, 1650 psi, 7 -10 kft-Ibs TQ. P/U - 145 klbs, S/O - 75 klbs, ROT - 95 klbs. ART = 4.7 hrs. Report Date: 6/20/2010 Job Category: DRILLING 24 Hr Summary Drill 366' of 8 1/2" production hole from 6587' to 6953'. Perform wiper trip from 6953' to 5512'. Due to tight hole, decision was made to pump & backream from 5693' until previously wiped hole was reached. Begin TOOH to 1700'. Decision was made to backream from 5150' after continuously working tight hole conditions. www.peloton.com Page 7/21 Report Printed: 11/4/2010 Operat ions Summary Report (Si a 011Cprypany Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:30 6.50 DRILL ROT AF Drill 366' of 8 1/2" production hole from 6587' to 6953'. DrIg Parameters: 60 rpm, 8 -17 klbs WOB, 460 gpm, 1650 psi, 7 -11 kft-lbs TQ. P/U - 157 klbs, S/O - 80 klbs, ROT - 95 klbs. ART = 5.2 hrs. 12:30 14:00 1.50 CIRC MUD AF Pump up final survey. Circulate & condition wellbore while rotating and reciprocating the pipe for upcoming short trip with approx. (2) B/U (100+ vis sweep did not return any additional cutting volume). Parameters: 70 rpm, 460 gpm, 1700psi, 7 -11 klb -ft TQ. P/U - 157 klbs, S/O - 80 , Rot - 95 klbs. 14:00 18:00 4.00 TRIP WIPR AF Perform short trip from 6953' to 5512'. Begin working tight hole at 5693'. Decision was made to pump & backream to previously wiped hole. 18:00 19:00 1.00 TRIP DP AF TIH back to bottom without experiencing any tight hole conditions. 19:00 20:30 1.50 CIRC MUD AF Circulate & condition wellbore while rotating and reciprocating the pipe for upcoming trip to surface with approx. (2) B /U. Parameters: 70 rpm, 460 gpm, 1700psi, 7 -11 klb -ft TQ. P/U - 157 klbs, S/O - 80 , Rot - 95 klbs. 20:30 06:00 9.50 TRIP DP AF Commence TOOH to surface from 6953' to 1700'. Experience tight spot at 5338' and begin working continuous tight hole from 5150'. The decision was made to pump and backream to the shoe in order to ensure good hole conditions and mitigate risks with BHI FE tools & Autotrak unit. Daily Operations Report Date: 6/20/2010 Job Category: DRILLING 24 Hr Summary Continue POOH with SLM from 1700' to 230' (No correction). Download memory from BHI FE tools, Laydown smart tools including AutoTrak steering unit. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 TRIP DP AF Continue POOH with SLM from 1700' to 230'. (No correction) 07:30 12:00 4.50 PULD BHA AF PJSM. Download stored memory from each BHI FE tool. Laydown BHI smart tools including AutoTrak steering unit. Bit Grade: 1 -1 - WT- A- X- 1 -NO -TD Report Date: 6/21/2010 Job Category: DRILLING 24 Hr Summary Complete clean out run with slick assy to TD (No tight hole conditions encountered), Circulate & condition wellbore (Approx. (3) B /U) while increasing lubricant content to 4 %, POOH to surface without issue & L/D HWDP, Test VBRs to 250/200 psi for 5 mins -- GOOD, Rig up Weatherford casers and prepare to run 4 1/2" liner. Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 12:00 12:30 0.50 PULD BHA AF Pick up slick clean out assy. Components: 8 1/2" HC MXL -1 mill tooth bit, Bit sub w/ float, Jars, 21 stds HWDP. 12:30 13:30 1.00 TRIP DP AF TIH from surface to 2432'. 13:30 14:00 0.50 SLPCUT DLIN AF Slip 33' of drill line. 14:00 15:30 1.50 SERVIC RIG AF Perform daily rig maintenance & inspection. Align disc brake on drawworks. Rig down BHI BPA unit and standpipe transducer. 15:30 18:00 2.50 TRIP DP AF TIH from 2432' to 6593. No fill or tight hole conditions were encountered. 18:00 19:30 1.50 CIRC MUD AF Circulate & condition the wellbore in preparation for 4 1/2" liner run. Pump approx. (3) B/U while raising the mud's lubricant content to 4 %. 19:30 00:30 5.00 TRIP DP AF Drop drift & POOH from 6953' to 650'. No tight hole conditions were encountered. 00:30 02:00 1.50 PULD DP AF POOH from 650' to surface while laying down HWDP, bit sub, and bit. Bitgrade:2- 2- WT- A- E- I -ER -TD 02:00 02:30 0.50 RUNPUL WBSH AF Pull wear bushing in preparation for VBR st. 02:30 03:30 1.00 TEST BOPE AF Make up test plug on 4 1/2" test joint. Te t VB to 250/2000 psi for 5 mins each -- GOOD. 03:30 04:00 0.50 PULL EQIP AF Pull test BOP test plug (tight). Run and seat wearbushing. 04:00 06:00 2.00 RURD CSG AF Rig up Weatherford casers & prepare to run 4 1/2" liner. Hold safety meeting with all involved parties reviewing the operations and hazards. Report Date: 6/22/2010 Job Category: DRILLING 24 Hr Summary Run 122 jts of 4 1/2" 12.6# L -80 563 Hydril liner. Tag an unpassable ledge at 6579' & attempt unsuccessfully to work through it. Cement liner in place at 6579' -- Plug was not bumped. Prepare to emergency release from liner setting tool. Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 SAFETY MTG AF Hold pre job safety meeting on running 4 1/2" liner with all involved personnel to discuss operation processes and the hazards associated with the job. 06:30 08:00 1.50 RUN CSG AF Circulate through shoe track to ensure floats are functional -- GOOD. www.peloton.com Page 8/21 Report Printed: 11/4/2010 M Marathon 1 Operations Summary Report 1 MARATHON ® Oil C N Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 08:00 12:00 4.00 RUN CSG AF Commence running 4 1/2" liner. RIH to 9 5/8" casing shoe. 12:00 12:30 0.50 SAFETY MTG AF Circulate liner at 3 bpm and 220 psi while holding safety meeting with oncoming IDA rig crew on liner running operations and hazards. 12:30 15:30 3.00 RUN CSG AF Continue running 4 1/2" liner from the 9 5/8" csg shoe to 4614'. 15:30 17:00 1.50 RURD OTHR AF Make up head pin & circulate liner at 3 bpm and 300 psi while changing the bails and elevators to DP units. 17:00 19:00 2.00 RUN CSG AF Pick up PBR & hanger. Run in on 1 std of DP to 4727'. Pick up 5" DP pup jt. and cement head. Torque cement head connections and laydown on catwalk. Make up second stand of DP and pump through hanger assy to ensure it is clean prior to proceeding. P/U 60 klbs & S/O 32 kl 19:00 21:30 2.50 TRIP DP AF RIH with liner on 5" DP, fillin ery 10 stands from 4727' t 6579' 21:30 00:00 2.50 TRIP DP AF Tag an unpassable ledge 6579' orrelation to mud log ' . tes a coal seam). Attempt numerous ds to work through ledge including pumping a 15% lube pill to increase rotary speed and decrease torque. All attempts were unsuccessful. After consulting with geology, the decision was made to cement the liner at its current depth. 00:00 02:00 2.00 CIRC MUD AF Circulate and condition wellbore while lowering the mud's yield point to 15 and preparing 100 bbls of viscosified brine for displacement. 02:00 03:00 1.00 RURD CMT AF Pick up /Rig up BOT cement head assy. Function test without issue. 03:00 03:30 0.50 SAFETY MTG AF Hold safety meeting on cementing operations and the associated hazards with all involved personnel. Pressure test all cement lines to 4500 psi. 03:30 05:30 2.00 PUMP CMT AF Cement 4 1/2" 'ner as follows: - 60 bbls 1 . ppg SealBond - 325 bbl (1086 xs) 14 ppg cement: Type 1 + 2% A -7, 1.2% BA -56, 2% Salt, 0.5 E , 0.6% CD -32, 0.2% A -2, 10% BA -90, 0.05% Static Free, 1 ghs FP -6L. - 5 bbls water for clean up to slop tank - Drop Plug - Displace with 103 bbls viscosified brine (Fluid was visibly aired up) While pumping the job the string was rotated and reciprocated: 25 rpm, 6 kft-lbs TQ, 10 -15 ft stroke, P/U - 92 klbs, S/0 56 klbs. While pumping the 60 bbl preflush and the first 40 bbls of cement around the comer the pipe • - -nt was suspended and the string placed in tension. Shoe depth - 6578'. esume pipe movement after 105 bbls of cement were pumped - ..le to rotate due to max tq of 8 kft-lbs): 5 -10 ft stroke, P/U - 115 klbs, S/O - 50 klbs. Work pipe throughout displacement. Displace 4 bbls over calculated volume in an unsuccessful attempt to bump the plug. • 05:30 06:00 0.50 PUMP CMT AF Decision was made to pump 2 bbls over displacement (Shoe track volume). Plug did not bump. In a continued effort to bump the plug, 2 more bbls were pumped unsuccessfully at 0.5 bpm. CIP - 0600 hrs. Daily Operations Report Category: 6/23/2010 Job Cate : DRILLING p grY 24 Hr Summary -- Successfully emergency release (did not bump plug) from liner hanger leaving the liner top at 1923', Circulate out excess cement (Apprq 60 bbls returned), Laydown excess 5" DP and liner running tools, Clean pits and build 3% KCL mud for displacement, Mill top of liner hanger, Continue lajringd "own 5" DP, Pick up ZXP packer and RIH, Seat assy and prepare to set packer. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 SETREL LNR AF With CIP at 0600 hrs & an unsuccessful attempt at bumping the plug, perform an emergency release of the liner running t. • •y working 2 rounds of left hand torque (7 kft-lbs), reciprocating the s g, a d applying up to 1000 psi. Top of liner hanger - 1923' liner shoe 695 ' •epth corrected after correlation for completion showed casing to be - s 06:30 07:00 0.50 CIRC MUD AF Pressure up to 500 psi. Ascend out of the hole 20' (65 klbs). Monitor pressure drop and bring up pumps to 7.6 bpm & 600 psi to circulate out excess cement. Noted spacer returns and divert overboard to cuttings tank (Approx. 60bbls cement returned). Pump until consistently receiving 9.5 ppp returns. 07:00 07:30 0.50 RURD OTHR AF Break out and lay down cement head and pup joints. 07:30 10:30 3.00 PULD DP AF POOH with liner running tool laying down 60 joints of 5" drill pipe. Inspect running tool. Emergency release process functioned successfully. www.peloton.com Page 9/21 Report Printed: 11/4/2010 M M Marathon • Operations Summary Report ARAT ® Oil Company Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 10:30 18:00 7.50 PULD DP AF Clear derrick of excess drill pipe by running in the hole to 1600' and POOH laying down 5" drill pipe. make up fluted mill assembly RIH to 1600'. 18:00 23:00 5.00 CLEAN TANK AF Commence emptying & cleaning pits. Build 200 bbls of 3% KCL water and ready for the addition of corrosion inhibitor. Prepare mud products on floats for demob. Perform daily rig inspection & maintenance. Lube crown, blocks, carrier, drivelines, and topdrive. Repair torque cylinder for make up tongs. Note: While inspecting BOT ZXP setting tool, it was noticed that a connection had backed off slightly and was no longer tight. The decision was made to transport it back to the BOT shop in Kenai to inspect and repair the tool prior to running. 23:00 00:00 1.00 MILL SECT AF Continue RIH from 1600' to 1923'. Tag and polish the top of the liner hanger. Begin encountering hard cement stringers at 1825'. Circulate until returns ridded of cement. 00:00 02:00 2.00 PULD DP AF POOH with 5" drill pipe from 1923' to surface while laying down excess drill pipe. 02:00 02:30 0.50 PULD BHA AF Pick up repaired liner top packer tool. 02:30 05:00 2.50 TRIP DP AF Trip in hole with ZXP on drill pipe from surface to 1923'. 05:00 06:00 1.00 SETREL PKR AF Hold safety meeting to discuss processes and hazards of setting BOT ZXP with all involved personnel. Rig up BJ cementers to provide 4500 psi to blow the ball seat and set the packer. Test lines to 5000 psi. Commence pumping operations. First attempt to set the packer was unsuccessful as the ball was not completely seated. Circulate with rig pump and mud from the active to seat ball. Daily Operations Report Date: 6/24/2010 Job Category: DRILLING 24 Hr Summary Set zxp packer, lay down drill pipe, pull wear ring, install dummy bushing in wellhead, rig up and run tieback compleation, displace 9.5 mud with 3% KCL, spot packer fluid, land compleation, test tubing and casing to 1500 psi good tests. Flush lines and start nipple down Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 SETREL PKR AF With rig pump pump ball on seat and pressure up to 2400psi, set ZXP packer, hold 5 minutes, switch line up and BJ pressure up F/ 2400psi T/ 4850psi blow ball seat rig down circ lines and head pin, make up top drive rotate string with 8 right hand turns to release setting tool. 07:30 11:00 3.50 PULD DP AF POOH with setting tool lay down drill pipe inspect setting tool and lay down. RIH with remaining stands of drill pipe and lay down. 11:00 12:00 1.00 RUNPUL WBSH AF Pull wear ring 12:00 13:00 1.00 RUNPUL WBSH AF Install 11" X 7" spacer bushing in lower multi -bowl section.Test seal to 5000psi hold 10 min good test 13:00 14:00 1.00 RURD OTHR AF Change bails and elevators 14:00 15:00 1.00 RURD CSG AF Rig up tubing handling equipment and control line equipment. 15:00 15:30 0.50 SAFETY MTG AF PJSM for running compleation, with IDA, WOT, PWS, BOT, MOC 15:30 19:30 4.00 PULD TBG AF Pick up seal assembly, RIH picking up 4 -1/2" 12.6# IBT tubing, Install chemical injection mandral after 10 jts make up 1/4" stainles line and test t/3000psi hold 15 min, bleed off hold 500psi . Continue picking up and running completion banding control line. RIH T/ 1900' 19:30 20:00 0.50 PULD TBG AF Make up head pin and circulating hose, P/U 38k, S/O 32K break circ at 1 bpm - 100psi, run in monitor pressure increase when seals enter PBR of ZXP shut down pump and bleed off pressure, slack off into PBR, pick up 1' mark pipe and pull outfor space out. 20:00 21:30 1.50 PULD TBG AF Space out with 6 pup joints.( installing one joint downfrom hanger pup) Make up hanger run control line through, pressure test control line to 2000psi 10 min, bleed off. 21:30 22:30 1.00 CIRC CFLD AF Displace 9.5ppg mud with 3% KCL brine, adding Conquor 303 for packer fluid spotting in annulus.Circ 4bpm 160 psi 22:30 01:00 2.50 RUNPUL TBG TA CSOT Attempt to land out, stacked out on locator not hanger, check measurements, space out wrong. pull hanger to floor, cut fa rei and strip out control line from hanger, pull out to pup joints, lay down 4' of pups, run back to hanger, terminate control line, test to 1000psi hold 10 min, land out compleation. 01:00 01:30 0.50 TEST WLHD AF Run in lock pins and test hanger T/ 5000psi hold 10 minutes. www.peloton.com Page 10/21 Report Printed: 11/4/2010 M M Operations Summary Report MARATHON ® Oi1C:Ompany Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 01:30 02:00 0.50 TEST TBG AF Test tubing T/ 1500psi hold 15 minutes. 02:00 03:00 1.00 TEST CSG AF Test casing T/ 1500psi hold 30 minutes 03:00 03:30 0.50 RUNPUL VLVE AF Lay down landing joint. Set BPV 03:30 06:00 2.50 NUND BOPE AF Flush out circ lines and BOPE, Nipple down BOPE Daily Operations Report Date: 6/25/2010 Job Category: DRILLING 24 Hr Summary Land tie back string, test tubing and casing t/ 1500psi Flush lines, nipple down BOPE, nipple up and test tree. Clean pits Ops Trouble Start Time End Time Our (hrs) Ops Code Ac Code Status Cade Comment 06:00 11:30 5.50 NUND BOPE AF Nipple down in celler - drip pan, mud manifold, trip tank lines, flow lines, riser, install plug in hydril, unhook koomey lines, choke and kill lines, Nipple down stack, remove and set on BOP rack, Pull spacer spool and DSA. ( Cleaning pits.) 11:30 12:00 0.50 NUND TREE AF Nipple up tree 12:00 13:30 1.50 TEST TREE AF PJSM, test tree - Hanger T/ 5000psi 10 min, good pull BPV, set 2 way check, Test tree componets T/ 5000 psi 10 min good test, Pull 2 way check and re install BPV 13:30 16:00 2.50 NUND EQIP AF Rig down choke extension and choke line, Kill line, panic line, and tie down chains.(Cleaning pits) 16:00 18:00 2.00 CLEAN TANK AF Cleaning pits, Pickle #3 mud pump, rig down mud lines and shock hoses, Rinse out trip tank, rinse down in sub. Inspect top drive and repairing small hyd. leaks. prep it for rig down. Rig down pipe racks, at cat walk. Finish cleaning pits. Rig released from Paxton #4 © 1800 hrs, for demobe and maintenance Report Date: 8/11/2010 Job Category: DRILLING 24 Hr Summary MIRU Vetco to install tree w/ coil hanger. PT to 5K psi. Test good. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code comment 07:30 08:30 1.00 SAFETY MTG Hold PJSM. Discuss emergency response, alarms -red flashing strobe for fire alarm, blue flashing strobe for gas alarm, muster area, wind direction, and specific job hazards. Obtain SW Permit. 08:30 12:30 4.00 RURD EQIP MIRU Vetco gray and ASRC crane. Remove OTIS tree cap from "dry hole" tree. Install Upper master valve, coil hanger w/ annular wing valve and SSV, Flow "T" w/ wing valve and SSV, swab valve, and OTIS tree cap. PT tree to 5K psi for 10 min. Test good. Install tree cap gauge and bleeder. Install bull plugs in blind flanges on flow trees. Close all vavles. 12:30 12:45 0.25 SECURE WELL Secure well head. Turn in all permits. sign out and leave loc. Report Date: 8/11/2010 Job Category: COMPLETION 24 Hr Summary MIRU Vetco to install tree w/ coil hanger. PT to 5K psi. Test good. Ops Trouble Start Time End Time Dur ( hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG Hold PJSM. Discuss emergency response, alarms -red flashing strobe for fire alarm, blue flashing strobe for gas alarm, muster area, wind direction, and specific job hazards. Obtain SW Permit. 08:30 12:30 4.00 RURD EQIP MIRU Vetco gray and ASRC crane. Remove OTIS tree cap from "dry hole" tree. Install Upper master valve, coil hanger w/ annular wing valve and SSV, Flow "T" w/ wing valve and SSV, swab valve, and OTIS tree cap. PT tree to 5K psi for 10 min. Test good. Install tree cap gauge and bleeder. Install bull plugs in blind flanges on flow trees. Close all vavles. 12:30 07:30 19.00 SECURE WELL Secure well head. Turn in all permits. sign out and leave loc. Report Date: 8/13/2010 Job Category: DRILLING 24 Hr Summary MIRU Pollard Wireline to run 2 -1/2 " GR. Can only RIH to 1950' wlm. Three attempts maked with different tool string configurations, but unable to get deeper than 1950'. String stalls out and will not fall. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG Hold PJSM. Discuss emergency response, alarms -red flashing strobe for fire alarm, blue flashing strobe for gas alarm, muster area, wind direction, and specific job hazards. Obtain SW Permit. www.peloton.com Page 11/21 Report Printed: 11/4/2010 M Marathon Operations Summary Report IP MARATHON ® Oil Company Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 08:15 09:15 1.00 RURD SLIK Spot crane and Wireline unit. Lay liners and drip pans. MU lubricator. MU tool string- RS, xo, RBoggie, 2" x 5' stem, RB, 2" x 5' stem, RB, KJ, HJ, SJ, RB, x; 2.5" OD gauge ring. PU lubricator and carry it to WH. PT to 1000 psi. 09:15 09:39 0.40 RUNPUL SLIK RIH (1) to 1951' wlm. WT but can't get down. POOH. 09:39 09:51 0.20 RURD SLIK OOH. Reconfigure tool string - replace lower 2.60" RBoogie w/ 4.5" RB. Thinking GR may be dragging on side of pipe. 09:51 10:21 0.50 RUNPUL SLIK RIH (2) to 1948' wlm. Work tools but can't get down. POOH. 10:21 10:36 0.25 RURD SLIK OOH. Reconfigure tool string- RS, RBoggie, 1 -3/4" x 5' stem, RB, OJ, SJ, 4.5" RB , 4.5" RB, 2.5" OD gauge ring. . 10:36 11:06 0.50 RUNPUL SLIK RIH (3) to 1950' wlm. Work tools but can't get down. POOH. 11:06 11:36 0.50 RURD SLIK OOH. RD Slickline unit. permit and leave loc. WELL Secure well. Close all valves. Turn in 11:36 11:51 0.25 SECURE p Daily Operations Report Date: 8/13/2010 Job Category: COMPLETION 24 Hr Summary MIRU Pollard Wireline to run 2 -1/2 " GR. Can only RIH to 1950' wlm. Three attempts maked with different tool string configurations, but unable to get deeper than 1950'. String stalls out and will not fall. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG Hold PJSM. Discuss emergency response, alarms -red flashing strobe for fire alarm, blue flashing strobe for gas alarm, muster area, wind direction, and specific job hazards. Obtain SW Permit. 08:15 09:15 1.00 RURD SLIK Spot crane and Wireline unit. Lay liners and drip pans. MU lubricator. MU tool string- RS, xo, RBoggie, 2" x 5' stem, RB, 2" x 5' stem, RB, KJ, HJ, SJ, RB, x; 2.5" OD gauge ring. PU lubricator and carry it to WH. PT to 1000 psi. 09:15 09:39 0.40 RUNPUL SLIK RIH (1) to 1951' wlm. WT but can't get down. POOH. 09:39 09:51 0.20 RURD SLIK OOH. Reconfigure tool string- replace lower 2.60" RBoogie w/ 4.5" RB. Thinking GR may be dragging on side of pipe. 09:51 10:21 0.50 RUNPUL SLIK RIH (2) to 1948' wlm. Work tools but can't get down. POOH. 10:21 10:36 0.25 RURD SLIK OOH. Reconfigure tool string- RS, RBoggie, 1 -3/4" x 5' stem, RB, OJ, SJ, 4.5" RB , 4.5" RB, 2.5" OD gauge ring. . 10:36 11:06 0.50 RUNPUL SLIK RIH (3) to 1950' wlm. Work tools but can't get down. POOH. 11:06 11:36 0.50 RURD SLIK OOH. RD Slickline unit. 11:36 07:30 19.90 SECURE WELL Secure well. Close all valves. Turn in permit and leave loc. Report Date: 10/5/2010 Job Category: COMPLETION 24 Hr Summary MIRU BJ Coiltech, Arctic Iron to proceed with well completion. AOGCC BOP test witnessed by Mr. Bob Noble - test successful Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrive location, sign in, receive safe work permit, hold PJSM with production and completion personnel. Discussed Simops and designated supervisor leads for each group, slips, trips, falls, reviewed JSA's, assigned jobs, muster area, emergency numbers, emergency vehicles, overhead loads, pinch points, high pressure, STOP THE JOB,report any near misses, etc. 08:00 14:00 6.00 RURD COIL AF Rig up coiled tubing unit, nitrogen / fluid pumping unit, flow back tanks, flow back iron, BOP's and flow cross unit. fill tanks with 100 BBL fresh water. Prepare for BOP test. 14:00 16:00 2.00 TEST BOPE AF Pressure test CTU BOP's per AOGCC requirement. Test witnessed by Bob Noble with AOGCC. Test choke and flow back lines to 200 low and 4200 high, test successful. Test blinds on BOP to 300 low and 3900 high. Test successful, bleed off pressure. Install test bar and close slips /rams. Test to 300 low and 3900 high. Test successful, bleed off pressure. 16:00 16:30 0.50 SECURE WELL AF Secure location for night and close valves on tree. Sign out, turn in work permit and leave location. Report Date: 10/6/2010 Job Category: COMPLETION 24 Hr Summary Clean out well www.peloton.com Page 12/21 Report Printed: 11/4/2010 t M Marathon • Operations Summary Report • „A„A„oM) ® Oil Company Well Name: PAXTON 4 Ops Trouble Start lime End Time Dur (hrs) Ops Code Activity code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrive location, receive work permit, hold PJSM with production and completion personnel. Discussed Simops and designated supervisor leads for each group. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Reviewed slips, trips, and falls around wellhead. 08:00 12:30 4.50 RURD COIL AF Walked location, decided to switch out KCI supply tank due to safety concerns about ladder access and rail protection on top of tank. Called for tank replacement. Swapped fluid from supply tank to flow back tank. MU coil connector and pull tested same to 21,600 lbs. Ordered extra lubricator piece to accommodate addition of coil tubing jars. Baker conducted JSA and discussed proper tool make up procedure and safe lifting operations. MU lubricator sections to injector head. MU Baker quick disconnect, jars, motors and 3.80" superloy mill to coil. Removed Arctic Iron supply tank and swapped with Rain- for -Rent frac tank. 12:30 13:30 1.00 TEST BOPE AF MU injector head to coil BOP's and shell test low /high. Test failed, bled pressure off and fixed leaking lubricator sections. Shell tested lubricator to 1500 psi, test successful. Bled off pressure and opened well up. 13:30 20:00 6.50 RUNPUL COIL AF RIH w/ coil. Tag liner top @1945' (liner top tie back seal area). PU 20 ft. and start pumps, increase rate to 1.5 BPM to work motor /mill through liner top. Work coil through liner top area with moderate difficulty. Worked down to 1975' MD and pulled back above 1945' MD to work back through tight spot. Took weight at 1950' MD and successfully continued through trouble area with pumps operating at 1.5 BPM. RIH w/ coil from 2000' to 6200', slow down coil to 60 fpm. Pumps on @ 1.5 BPM entire trip. Tag hard © 6533' CTD, increase pump rate to 2 BPM and mill cement stringers from 6533' to 6537'. Expected tag depth was 6453' MD per the liner tally. Tagged approximately 80 ft. deeper than expected. Milled wiper plugs from 6537 ' to 6541', good motor response. Rubber /aluminum bits returned in surface fluid. Continued to 6545' CTD, coil unable to work any deeper due to friction. Bottom of hole called @ 6541' CTD. Circulate bottoms up, POOH w/ coil at controlled rate with pumps rolling at 0.75 BPM. OOH w/ coil, bump tools in lubricator and check depth counter - everything accurate. Close blind rams and pressure test wellbore to 1500 psi. 10 minute test successful, bleed off 4 -1/2" wellbore. 20:00 21:00 1.00 RURD COIL AF RD injector head and lubricator. Break out mill /motor BHA. Secure well and leave location. Daily Operations Report Date: 10/7/2010 Job Category: COMPLETION 24 Hr Summary Run CBUGR under pressure (1500#) to evaluate cement quality Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Arrived location, signed in, received work permit, hold PJSM - topics discussed - Placed a focus on dropped objects, stored energy and working at heights. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Talked about trip hazards around wellhead. Overview of tractor operation and working with high current on location. Spotted equipment to allow for Simops on north side of pad. www.peloton.com Page 13/21 Report Printed: 11/4/2010 M ARAiNOM ® �,' Marathon • Operations Summary Report Os a Well Name: PAXTON 4 /� Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 08:30 10:00 1.50 RURD ELEC AF Spotted Expro equipment and Welltec generator. RU on wellhead with grease head for working under pressure. Tested Welltec tractor at surface and made required electrical current checks. MU 3.72" OD gauge ring /junk basket below tractor. Stabbed tools and MU grease head onto top of coil BOP. 10:00 13:30 3.50 RUNPUL ELEC AF RIH w/ e-line to 1363' MD. Sat down and started Welltec tractor. Tractor didn't immediately start due to cold wellbore conditions. Made several attemps to start tractor with no success. PU to 1280' and and let BHA fall on it's own, powered tractor to turn over electric motor. Began tractoring and continued to 4600' using tractor assist. Shut off tractor and continued in hole using gravity to move BHA. Tag bottom at 6508' MD. Run CCL strip to verify depth. POOH with e-line, RD grease head and break down tool string. Break out junk basket/gauge ring, basket was empty. Function tractor at surface, successful test. 13:30 19:30 6.00 RUNPUL ELEC AF MU CBL tool string below tractor and stab in well. RIH to 500' and make free pipe pass. Pressure wellbore to 1500 psi with BJ pump truck, tested grease head and surface equipment at same time. Successful test, bled off pressure. RIH to 1600' and turn on Welltec tractor, continue tractoring to 4600'. Turn off tractor at 4600' and RIH to PBTD, found bottom of well @ 6505' MD. Begin repeat section. Pressured wellbore to 1500 psi to get ready for main pass. Logged main pass from 6505' to 1800' with 1500 psi applied to 4 -1/2" wellbore. 19:30 20:30 1.00 RURD ELEC AF POOH w/ eline, break down CBL subs and lay down Welltec tractor. 20:30 21:00 0.50 SECURE WELL AF Rig back for night, sign out and secure location for evening. Daily Operations Report Date: 10/8/2010 Job Category: COMPLETION 24 Hr Summary Run CBL / GR - NO Pressure Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Prejob safety meeting with production and completion personnel. Placed a focus on dropped objects, stored energy and working at heights. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Talked about trip hazards around wellhead. Overview of tractor operation and working with high current on location. Spotted equipment to allow for Simops on north side of pad. Planned for ESD drill on pad. 08:30 09:00 0.50 RURD ELEC AF Spotted Expro equipment and Welltec generator. Tested Welltec tractor at surface. Stop work and prepare for ESD drill. 09:00 09:30 0.50 SAFETY DRIL AF Start ESD drill on pad, walk to muster area. Account for all personnel on location and wait for blow down to finish. 09:30 10:30 1.00 RURD ELEC AF Finish RU Expro equipment. MU CBL and Welltec tractor, check tool functions. 10:30 17:00 6.50 RUNPUL ELEC AF RIH w/ a -line to 500' MD. Run free pipe pass from 500' to 300'. RIH to 1500', set down and started Welltec tractor. Tractored from 1500' to 4600' with no issues. Shut off tractor and continue in hole using gravity to move BHA. Tag bottom at 6505' MD. Correlate depth with GR on OH log. Logged main pass from 6505' to 1800' with 0 psi applied to 4 -1/2" wellbore. POOH w/ eline, break down CBL subs and lay down Welltec tractor. 17:00 17:30 0.50 SECURE WELL AF RD a -line and crane truck, sign out and secure location for evening. Report Date: 10/9/2010 Job Category: COMPLETION 24 Hr Summary Reverse circulate drilling completion fluid out of hole, prepare wellbore for perforations www.peloton.com Page 14/21 Report Printed: 11/4/2010 M Marathon • Operations Summary Report • MARATHON / Oil COMPany Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrive location, sign in, receive work permit, hold PJSM - Prejob safety meeting with production and completion personnel. Discussed Simops and designated supervisor leads for each group. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Reviewed slips, trips, and falls around wellhead. 08:00 10:00 2.00 RURD COIL AF RU reverse circ. line and start up BJ equipment. Made up 2" bullnose BHA for reversing nitrogen, no check valve installed. PU injector and stab on wellhead. 10:00 10:30 0.50 TEST BOPE AF Pressure test lines (200 low and 2000 high), test succesful. Empty displacement tub and bleed off line for reverse circ. 10:30 14:00 3.50 RUNPUL COIL AF RIH w/ coil and start circ. nitrogen at min. rate (500 cfm). Increase rate to 750 cfm @ 2000 ft. CTD. Park coil at 4500' CTD and wait for N2 to round corner. RIH to TD, tag bottom @ 6507 CTD. 84 bbls fluid recovered ( +- 130 total expected by end of job). Continue reversing nitrogen, 130 bbl recovered @ surface. Hole is dry. POOH w/ coil at controlled rate. Shut in well and trap 1280 psi at surface. 14:00 16:00 2.00 RURD COIL AF Blow down coil and all surface lines. Strap tanks and calculate that 132 bbls were returned. All fluid accounted for. Rig back injector head and remove coil BOP's. 16:00 16:30 0.50 SECURE WELL AF Secure well for evening, turn in work permit, sign out and leave location Daily Operations Report Date: 10/10/2010 Job Category: COMPLETION 24 Hr Summary Perforated Stage la intervals. Turned well over to Production. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Prejob safety meeting with production and completion personnel. Placed a focus on dropped objects, stored energy and working at heights. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Talked about trip hazards around wellhead. Discussed tractor operation and working with high current on location. Spotted equipment to allow for Simops on north side of pad. Reviewed explosives safety and radio silence during gun arming activities. 08:30 10:00 1.50 RURD ELEC AF Spotted Expro equipment and begin RU. Spot Welltec generator and tested tractor at surface. Stop work and hold explosive safety tailgate meeting. Armed 22' 3 -3/8" OD perf gun (bottom 15' loaded with 4spf, 60 degree phased GeoLab Connex charges). 13.75' from CCL to top shot. 10:00 11:00 1.00 TEST BOPE AF PU lubricator, MU tractor and perf gun to a -line. Test line for stray voltage. Stab lubricator on wellhead and pressure test with water to 1500 psi. 11:00 14:00 3.00 RUNPUL ELEC AF RIH and set down © 1610', activated tractor and tractored to 4600'. Shut down tractor and continue in hole to PBTD. Tag bottom @ 6508' as expected. Bleed down pressure on well to 900 psi. Run short joint correlation and pull into position @ 6391.25' (CCL), 6405-6420' (OH and CH). Shoot gun and perforate 6405 to 6420', good indication of fire. POOH, pressure on well built from 900 to 1000 psi. www.peloton.com Page 15/21 Report Printed: 11/4/2010 M Maw, • Operations Summary Report IP MARATHON ® OilCOmpany Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 14:00 19:00 5.00 RUNPUL ELEC AF Lay down perforating BHA, guns fired successfully and were dry. Tested Welltec tractor. Prepare wellsite for explosives arming. Arm 22' 3 -3/8" OD gun (loaded 6' at top - 9' blank - bottom 7' loaded w/ GEODynamics Connex charges). CCL to top shot = 7 feet. PU lubricator and stab on well. Pressure test quick connect to 1500 psi. RIH and set down @ 1500', PU 100' and jump started tractor by RIH w/ e-line while energizing tractor. Tractor stalled out several times, able to restart each time with no issues. Tractored from 1500' to 4500'. Shut down tractor. Continue in hole to PBTD @ 6508', able to see first run perforations from 6405 - 6420'. Guns became stuck in perforations. Tried to bleed down well and move guns uphole, no success. Energized tractor to free guns, able to free up BHA and continue uphole. Run correlation pass and pull into position @ 6229' (CCL) to shoot @ 6236 -42' and 6251 -58'. Bleed down well to 950 psi and fire guns. Detonator appeared to fire but there was no weight loss on line. POOH w/ e-line and shut in well, pressure © surface built from 950 psi to 1180 psi. 19:00 21:00 2.00 RURD ELEC AF Lay down spent gun and tractor BHA. Guns fired successfully and were dry. Lay down lubricator and line up well to flowback iron. Open up well to flowback tank and flowed through gas buster. NO sign of water during cleanup. Flowed to opentop tank until gas was @ surface. 21:00 22:00 1.00 SECURE WELL AF Secure well. Turned well over to facilities. Well stabilized @ 620 psi and 1.2 MM. Small amount of water (0.7 bbl) slugged into seperator. Continue to flow well through facilities. Sign out, turn in work permit, leave location. Daily Operations Report Date: 10/11/2010 Job Category: COMPLETION 24 Hr Summary Flowed well to facilities. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment Report Date: 10/12/2010 Job Category: COMPLETION 24 Hr Summary Perforated Stage 1b intervals. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Prejob safety meeting with production and completion personnel. Placed a focus on dropped objects, stored energy and working at heights. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Talked about trip hazards around wellhead. Overview of tractor operation and working with high current on location. Spotted equipment to allow for Simops on north side of pad. Reviewed explosives safety and radio silence during gun arming activities. 08:30 10:30 2.00 RURD ELEC AF Take well over from facilities and shut -in. Spotted Expro equipment and begin RU. Spot Welltec generator and tested tractor at surface. Stop work and hold explosive safety tailgate meeting. 10:30 11:00 0.50 RURD ELEC AF Armed 11 ft. 3 -3/8" OD perf gun (bottom 9' loaded with 4spf, 60 degree phased GeoLab Connex charges). 8.7' from CCL to top shot. 11:00 11:30 0.50 RUNPUL ELEC AF PU lubricator, MU tractor and perf gun to e-line. Test line for stray voltage. Stab lubricator on wellhead and pressure test with water to 1500 psi. 11:30 12:30 1.00 RUNPUL ELEC AF RIH and set down @ 1610', activated tractor and tractored to 4600'. 12:30 13:00 0.50 LOG OTHR AF Shut down tractor and continue in hole. Log correlation pass and perfs @ 6236 -42' and 6251 -58'. Use short joint to get on depth. 13:00 13:30 0.50 PERF 1 CSG AF Pull into position @ 5821.3' (CCL depth) and draw down well to 870 psi. Shoot gun and perforate 5830 to 5839', good indication of fire. Saw pressure bobble on gauge upstream of choke skid. www.peloton.com Page 16/21 Report Printed: 11/4/2010 Maras Operations Summary Report 1 MANAm0N ® Qi�(rprypiffly Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Cade Status Code Comment 13:30 14:30 1.00 RUNPUL ELEC AF POOH, pressure on well built from 870 to 1170 psi. Lay down perforating BHA, guns fired successfully and were dry. Tested Welltec tractor. 14:30 15:30 1.00 RUNPUL ELEC AF Prepare wellsite for explosives arming. Arm 11 ft. 3 -3/8" OD gun (fully loaded w/ GEOlab Connex charges). CCL to top shot = 8 feet. PU lubricator and stab on well. Pressure test quick connect to 1500 psi. 15:30 16:30 1.00 RUNPUL ELEC AF RIH and set down @ 1610', activated tractor and tractored to 4600'. 16:30 17:00 0.50 LOG OTHR AF Shut down tractor and continue in hole. Log correlation pass and perfs from 5830 to 5839'. Use upper short joint to get on depth. 17:00 17:30 0.50 PERF CSG AF Pull into position @ 5574' (CCL depth) to shoot @ 5582 -93'. Bleed down well to 800 psi and fire guns. Good indication of fire. Saw pressure bobble on gauge upstream of choke skid. 17:30 18:30 1.00 RUNPUL ELEC AF POOH w/ a -line and shut in well, pressure @ surface built from 800 psi to 1170 psi. Lay down spent gun and tractor BHA. Guns fired successfully and were dry. Lay down lubricator and line up well to flowback iron. 18:30 19:30 1.00 FLOW BACK AF Open up well to flowback tank and flowed through gas buster. NO sign of water during cleanup. 19:30 20:00 0.50 FLOW TEST AF Turned well over to facilities. Well initially producing 2.3 MM @ 620 psi wellhead pressure. Secure location and shut down for evening. 20:00 07:30 11.50 SECURE WELL AF Secure Well For night Daily Operations Report Date: 10/13/2010 Job Category: COMPLETION 24 Hr Summary Flowed well to facilities. Ops Trouble Start Time End lime Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SECURE WELL AF Secure Well 08:00 09:00 1.00 SAFETY MTG AF Prejob safety meeting with production and completion personnel. Reviewed JSA for coil rig down. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Reviewed slips, trips, and falls around wellhead. 09:00 12:30 3.50 RURD COIL AF RDMO BJ Coil equipment. Break down hardline and control hoses. Secure control cabin and coil reel. Clean duck ponds with absorbent pads before storage. Load tool shed and lubricator skid onto flatbed, secure same. 12:30 07:30 19.00 SECURE WELL AF Secure location and shut down for day. Continue to flow well through facilities. Report Date: 10/14/2010 Job Catego CO MPLETION 24 Hr Summary Perforated Stage lc intervals. Turned well over to Production. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Prejob safety meeting with production and completion personnel. Renewed focus on dropped objects and rotating machinery. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Talked about trip hazards around wellhead. Overview of tractor operation and working with high current on location. Reviewed explosives safety and radio silence during gun arming activities. 08:30 11:00 2.50 RURD ELEC AF Take well over from facilities and shut -in. ND single valve ram and RU Expro double valve BOP's, test same. Function test Welltec tractor at surface. Thaw out frozen Expro test equipment. Stop work and hold explosive safety tailgate meeting. 11:00 11:30 0.50 RURD ELEC AF Armed 10 ft. 3 -3/8" OD perf gun (Top 9' loaded with 6 spf, 60 degree phased Owen's charges). 8.0' from CCL to top shot. 11:30 12:00 0.50 RURD ELEC AF PU lubricator, MU tractor and perf gun to e-line. Test line for stray voltage. Stab lubricator on wellhead and pressure test with water to 1500 psi. 12:00 13:30 1.50 TEST BOPE TA MSOT Repair test pump, clean filter in holding tank. Test lubricator with methanol to 1500 psi successfully. 13:30 14:30 1.00 RUNPUL EQIP AF RIH and set down @ 1600', activated tractor and tractored to 4600'. www.peloton.com Page 17/21 Report Printed: 11/4/2010 M Marathon Operations Summary Report • MARATHON ® Oil C:O. / Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 14:30 15:00 0.50 PERF CSG AF Shut down tractor and continue in hole. Log correlation pass and perfs @ 5582 -93'. Use short joint to get on depth. Pull into position @ 5362' (CCL depth) and draw down well to 730 psi. Shoot gun and perforate 5370 -79', good indication of fire. Saw pressure bobble on gauge upstream of choke skid. 15:00 16:00 1.00 RUNPUL ELEC AF POOH, pressure on well built from 730 to 1060 psi. Lay down perforating BHA, guns fired successfully and were dry. Tested Welltec tractor. 16:00 16:30 0.50 RURD ELEC AF Prepare wellsite for explosives arming. Arm 6 ft. 3 -3/8" OD gun (fully loaded w/ 6spf Owen's charges). CCL to top shot = 8 feet. PU lubricator and stab on well. Pressure test quick connect to 1500 psi. 16:30 17:30 1.00 RUNPUL ELEC AF RIH and set down @ 1550', activated tractor and tractored to 4600'. 17:30 18:00 0.50 PERF CSG AF Shut down tractor and continue in hole. Log correlation pass and perfs from 5370 -79'. Use short joint to get on depth. Pull into position © 5309' (CCL depth) to shoot 5317 -23'. Bleed down well to 710 psi and fire guns. Good indication of fire. Saw pressure bobble on gauge upstream of choke skid. 18:00 19:00 1.00 RUNPUL ELEC AF POOH, pressure on well built from 710 to 1060 psi. Shut well in and bleed down lubricator. Lay down perforating BHA, guns fired successfully and were dry. RD lubricator and line up well to flow back iron. 19:00 19:30 0.50 RURD ELEC AF Install tree cap and test same to 1000 psi. Close swab valve and open master to choke skid. 19:30 20:15 0.75 FLOW BACK AF Open up well to flowback tank and flowed through gas buster. NO sign of water during cleanup. 20:15 21:00 0.75 FLOW BACK AF Turned well over to facilities. Well initially producing 3.1 MM © 620 psi wellhead pressure. Secure location and shut down for evening. Daily Operations Report Date: 10/15/2010 Job Category: COMPLETION 24 Hr Summary Flowed well to facilities. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment Report Date: 10/16/2010 Job Category: COMPLETION 24 Hr Summary Perforated Stage 1d intervals, turned well over to Production. Ops Trouble Start lime End Time Dur (hrs) Ops Code Activity Code Status Cade Comment 07:30 08:30 1.00 SAFETY MTG AF Prejob safety meeting with production and completion personnel. Renewed focus on dropped objects and rotating machinery. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Talked about trip hazards around wellhead. Overview of tractor operation and working with high current on location. Reviewed explosives safety and radio silence during gun arming activities. 08:30 09:30 1.00 RURD ELEC AF Grease valves on Paxton #4 tree. Function test Welltec tractor at surface. Add 8' lubricator section. PU lubricator and hang shivs. Take well over from facilities and shut -in. Stop work and hold explosive safety tailgate meeting. 09:30 10:00 0.50 RURD ELEC AF Armed 14 ft. 3 -3/8" OD pert gun (Top 8' loaded with 6 spf, 60 degree phased Owen's charges). 8.0' from CCL to top shot. 10:00 11:00 1.00 RURD ELEC AF PU lubricator, MU tractor and pert gun to a -line. Test line for stray voltage. Stab lubricator on wellhead and pressure test with water to 1500 psi. 11:00 12:15 1.25 RUNPUL EQIP AF RIH and set down © 1550', activated tractor and tractored to 4600'. 12:15 12:30 0.25 PERF CSG AF Shut down tractor and continue in hole. Log correlation pass and perfs @ 5317 -23'. Use short joint to get on depth. Pull into position © 5283' (CCL depth) and draw down well to 715 psi. Shoot gun and perforate 5291 -99', good indication of fire. Saw pressure bobble on gauge upstream of choke skid. 12:30 13:30 1.00 RUNPUL ELEC AF POOH, pressure on well built from 715 to 960 psi. Lay down perforating BHA, guns fired successfully and were dry. Tested Welltec tractor. 13:30 14:30 1.00 RURD ELEC AF Prepare wellsite for explosives arming. Arm 20 ft. 3 -3/8" OD gun (top 15 ft. loaded w/ 6spf Owen's charges). CCL to top shot = 8 feet. PU lubricator and stab on well. Pressure test quick connect to 1500 psi. www.peloton.com Page 18/21 Report Printed: 11/4/2010 M Marathon Operations Summary Report NON ® OilCo mp �ry Well Name: PAXTON 4 Ops Trouble Start Time End Time Our (ht's) Ops Code Activity Code Status Code Comment 14:30 15:45 1.25 RUNPUL ELEC AF RIH and set down @ 1550', activated tractor and tractored to 4600'. 15:45 16:15 0.50 PERF CSG AF Shut down tractor and continue in hole. Log correlation pass and perfs from 5291 -99'. Use short joint to get on depth. Pull into position @ 5216' (CCL depth) to shoot 5224 -39'. Bleed down well to 770 psi and fire guns. Good indication of fire. Saw pressure bobble on gauge upstream of choke skid. 16:15 17:30 1.25 RUNPUL ELEC AF POOH, pressure on well built from 770 to 980 psi. Shut well in and bleed down lubricator. Lay down perforating BHA, guns fired successfully and were dry. RD lubricator and line up well to flow back iron. 17:30 18:00 0.50 RURD ELEC AF Install tree cap and test same to 1000 psi. Close swab valve and open master to choke skid. 18:00 18:30 0.50 FLOW BACK AF Open up well to flowback tank and flowed through gas buster. NO sign of water during cleanup. 18:30 20:00 1.50 FLOW BACK AF Turned well over to facilities. Secure location and shut down for evening. Daily Operations Report Date: 10/17/2010 Job Category: COMPLETION 24 Hr Summary Flowed well to facilities. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment Report Date: 10/18/2010 Job Category: COMPLETION 24 Hr Summary Waiting on weather, high winds. Flowed well to facilities. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Prejob safety meeting with production and completion personnel. Renewed focus on dropped objects and rotating machinery. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Talked about trip hazards around wellhead. Overview of tractor operation and working with high current on location. Reviewed explosives safety and radio silence during gun arming activities. 08:30 09:30 1.00 RURD ELEC AF Load 3 -3/8" 4spf Connex guns (14 ft and 11 ft.) for upcoming perforation intervals. Function test Welltec tractor. 09:30 11:00 1.50 WAITON WTHR AF Monitor wind conditions, gusts to 25 mph. Unsafe to operate manlift and handle oversized lubricator. 11:00 11:30 0.50 SECURE WELL AF Secure location, shut down due to unsafe working conditions (high winds). Report Date: 10/19/2010 Job Category: COMPLETION 24 Hr Summary Perforated Stage le intervals (5171' - 5182' and 5119' - 5133' ). Flowed well to open top tank and turned well over to Production. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Prejob safety meeting with production and completion personnel. Renewed focus on dropped objects and rotating machinery. Reviewed active gas pad protocol, chose muster areas. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Talked about trip hazards around wellhead. Overview of tractor operation and working with high current on location. Reviewed explosives safety and radio silence during gun arming activities. 08:00 09:00 1.00 RURD ELEC AF Function test Welltec tractor at surface. MU tractor to rope socket and PU lubricator /tractor together. Hang shivs and MU grease head. 09:00 09:30 0.50 RURD ELEC AF Stop work and hold explosive safety tailgate meeting. Armed 22 ft. 3 -3/8" OD perf gun (Top 11' loaded with 4 spf, 60 degree phased Connex reactive liner charges). 8.0' from CCL to top shot. 09:30 10:15 0.75 RURD ELEC AF MU perf gun to Welltec tractor and shock sub. Test line for stray voltage and verify CCL sub operational. Take well over from facilities and shut -in. Stab lubricator on wellhead and pressure test with methanol water to 1500 psi. 10:15 11:30 1.25 RUNPUL EQIP AF RIH and set down @ 1700', activated tractor and tractored to 4375'. www.peloton.com Page 19/21 Report Printed: 11/4/2010 M ryas 111, Operations Summary Report MARATHON a Oil Company Well Name: PAXTON 4 Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 11:30 12:00 0.50 PERF CSG AF Shut down tractor and continue in hole. Log correlation pass and perfs @ 5224 -39'. Use short joint to get on depth. Pull into position @ 5163 (CCL depth) and draw down well to 650 psi. Shoot gun and perforate 5171 -82', good indication of fire. Saw pressure bobble on gauge upstream of choke skid. 12:00 12:30 0.50 RUNPUL ELEC AF POOH, pressure on well built from 615 to 910 psi. Lay down perforating BHA, guns fired successfully but were WET. Tested Welltec tractor. 12:30 13:15 0.75 PULD PGUN AF MU pert gun to Welltec tractor and shock sub. Test line for stray voltage and verify CCL sub operating properly. 13:15 14:15 1.00 FLOW TEST CS Remove firing head from a -line, stand back perforating BHA. Flow well to open top tank and gas buster to check for water from just added perforations (5171 -82'). Guns pulled wet. No indication of water during flow back. Shut -in well and proceed with second perforating run. 14:15 14:30 0.25 RURD ELEC AF Prepare wellsite for explosives arming. Arm 22 ft. 3 -3/8" OD gun (top 14 ft. loaded w/ 4spf 60 degree phased Connex reactive liner charges). CCL to top shot = 8 feet. PU lubricator and stab on well. Pressure test quick connect to 1500 psi. 14:30 15:30 1.00 RUNPUL ELEC AF RIH and set down @ 1730', activated tractor and tractored to 4300'. 15:30 16:00 0.50 PERF CSG AF Shut down tractor and continue in hole. Log correlation pass and perfs from 5171 -82'. Use short joint to get on depth. Pull into position © 5111' (CCL depth) to shoot 5119 -33'. Bleed down well to 680 psi and fire guns. Excellent indication of fire. Saw pressure bobble on gauge upstream of choke skid. 16:00 16:15 0.25 WORK ELEC TA MDPF Perforating BHA stuck after guns fired. E -line can't move up or down. Pulled 500 lbs. over PU weight with no success. Activated Welltec tractor to achieve downward movement with guns, unsuccessful. Pulled 500 Ib. over on a -line and flowed well to open top tank to move guns uphole. BHA moved 5 ft. uphole and guns became free. 16:15 17:15 1.00 RUNPUL ELEC AF POOH, pressure on well built from 680 to 920 psi. Shut well in and bleed down lubricator. Lay down perforating BHA, guns fired successfully and partially wet. RD lubricator and line up well to flow back iron. 17:15 17:30 0.25 RURD ELEC AF Install tree cap and test same to 1000 psi. Close swab valve and open master to choke skid. 17:30 18:45 1.25 FLOW BACK AF Open up well to flowback tank and flowed through gas buster. NO sign of water during cleanup. 18:45 19:00 0.25 FLOW BACK AF Turned well over to facilities. Secure location and shut down for evening. Daily Operations Report Date: 10/20/2010 Job Category: COMPLETION 24 Hr Summary Flowed well to facilities. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity code Status Code Comment Report Date: 10/21/2010 Job Category: COMPLETION 24 Hr Summary Run production log across perforations @ 30, 60, and 90 fpm. Ops Trouble Start lime End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Prejob safety meeting with production and completion personnel. Renewed focus on dropped objects and rotating machinery. Covered hand safety, 3 second rule and the buddy system. Overview of crane safety and working under suspended loads. Talked about trip hazards around wellhead. Overview of tractor operation and working with high current on location. 08:30 10:00 1.50 REMOVE SEQP AF Reposition Expro equipment to allow for Paxton #3 wellhouse removal. Disconnect electrical supply to wellhouse. Spot Udelhoven boom truck and test crane functions. PU wellhouse and place next to secondary containment and flowback equipment. RD boom truck. 10:00 10:30 0.50 PULD LOG AF M/U Welltec tractor to e-line, stab inside lubricator. PU lubricator and M/U centralizers and spinner /logging tool below tractor while BHA is vertical. Function test Welltec tractor and spinner tool. 10:30 11:15 0.75 PULD BHA AF Stab lubricator and pressure test w/ methanol to 1500 psi against swab valve. www.peloton.com Page 20/21 Report Printed: 11/4/2010 M -- Marathon Operations Summary Report ®al Well Name: PAXTON 4 Ops Trouble Start Time End Time Dur (his) Ops Code Activity Code Status Code Comment 11:15 12:30 1.25 RUNPUL ELEC AF RIH w/ a -line to 1490' and set down. Start tractor and tractor to 4450', shut down tractor. 12:30 15:30 3.00 LOG PROD AF Log down and up passes @ 30, 60, and 90 fpm respectively. Well flowing 2.56MM @ 630 psi during passes. Sporadic spinner response, suspect poor spinner centralization in deviated wellbore section. 15:30 17:00 1.50 FLOW TEST CS Draw well down to +- 450 psi surface flowing pressure to unload water from wellbore. Park a -line © 4800' and periodically work line up and down to avoid sticking tools. Well stabilized (3.9MM @ 455 psi) and slugged approximately 5 bbls water to surface in 1.5 hours. 17:00 17:30 0.50 RUNPUL ELEC TA MDLG RIH logging 30 fpm, well flowing 3.9MM @ 450 psi. NO spinner response, decide to POOH and check tools. 17:30 18:15 0.75 PULL EQIP TA MDLG POOH w/ logging tools, spinner became functional in vertical section of hole. 18:15 18:45 0.50 PULD BHA TA MDLG Lay down primary spinner and PU backup spinner tool. Reconfigure centralization by placing 2nd centralizer sub immediately above spinner. 18:45 20:00 1.25 RUNPUL ELEC TA MDLG RIH w/ a -line to 1550' and set down. Start tractor and tractor to 4440', shut down tractor. 20:00 21:45 1.75 LOG PROD CS RIH to 6450' while logging 30 fpm, well flowing 4.41 MM © 452 psi. Start up pass and log to 4900'. 21:45 22:45 1.00 LOG PROD CS Log downpass 60 fpm to 6450', well flowing 4.38MM @ 450 psi. Start up pass (60 fpm) and log to 4900', well flowing 4.31 MM © 451 psi. 22:45 23:15 0.50 LOG PROD CS Log downpass 90 fpm to 6450', well flowing 4.27MM © 450 psi. Start up pass (90 fpm) and log to 4900', well flowing 4.28 MM @ 450 psi. 23:15 00:00 0.75 RUNPUL ELEC AF POOH w/ e-line. Close swab valve, bleed off lubricator. LD tractor and spinner tools. LD Lubricator. 00:00 00:45 0.75 SECURE WELL AF Install tree cap and test same. Secure location and shut down for evening. Well flowing 4.51 MM @ 453 psi. www.peloton.com Page 21/21 Report Printed: 11/4/2010 • a SITAITE ALASKA SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Kevin J. Skiba Regulatory Compliance Representative Marathon Alaska Production LLC P.O. Box 1949 4 Kenai, Alaska 99611-1949 Re: Ninilchik Unit Field, Beluga Pool, Well Name Paxton #4 Sundry Number: 310 -327 Dear Mr. Skiba: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for 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, Daniel T. Seamount, Jr. Chair DATED this 29th day of September, 2010. End. • • Marathon Alaska Production LLC AA a Cr7t Ei iJ n Alaska Asset Team P.O. Box 1949 ,� ,'Alaska Production LLC Kenai, AK 99811 Telephone 907/283 -1371 Fax 907/283 -1350 September 29, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission S F P 2 9 2 010 333 W 7 Ave Anchorage, Alaska 99501 PUPA a "�410a �lttther�$ Reference: 10-403 Application for Sundry Approvals . a Field: Ninilchik Unit Well: Paxton #4 Dear Mr. Aubert: Submitted for your approval is the10 -403 Application for Sundry Approvals for PAX-4 well. The production liner was set higher than planned. In an effort to ensure the integrity of the production liner shoe seal, Marathon proposes a change to the approved program that includes cleaning out the liner and installing a plug with cement cap if necessary. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, • Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-403 Application for Sundry Approvals cc: AOGCC Operations Program Houston Well File Well Schematic Kenai Well File KJS A la • STATE OF ALASKA • WC7 / ALASKA OIL AND GAS CONSERVATION COMMISSION 41 • APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1. Type of Request Abandon ❑ Plug for Redriil ❑ Perforate New Pool ❑ Repair well ❑ - Change approved program fl Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Specify Time Extension ❑ Operational shutdown ❑ Re -enter Susp. Well 0 Stimulate ❑ Alter casing ❑ Other: ❑ 2. Operator Name: Marathon Alaska Production LLC 4. Current Well Class: Number: ass: 5. Permit to Drill Numbe / Development 0 _ Exploratory El 210-064 - , 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: i Kenai Alaska, 99611- 1949 50- 133- 20589-00-00- 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: i property line where ownership or landownership changes: 4 ❑ No E Paxton #4 - Spacing Exception Required? Yes 9. Property Designation (Lease Number): 10. Field/Pool(s): �,ey,da" ADL • 384372 (g,s',) Ninilchik Unit / Beluga Pool - 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 6,953' - 3,831' 6,494 3,468' NA NA Casing Length Size MD / ND Burst Collapse Structural . Conductor 96' 20" 11T 11T Surface 2,473' 9 -518" 2,494' 1,417' 6,870 psi 4,750 psi Intermediate Production Liner 4,673' 4-1/2" 6,578' 4,534' 8,430 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NA NA Tie - Back 4 L - 80 1,955' / Packers and SSSV Type: SSSV: NA Packers and SSSV MD (ft) and ND (ft): SSSV: NA Packers: ZXP Top Liner Packer Packer 1,142' MD / 1,005' TVD 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program IO BOP Sketch ❑ Exploratory ❑ Development IO - Service ❑ 14. Estimated Date for ; 15. Well Status after proposed work: Commencing Operations: October 5, 2010 Oil ❑ Gas el - WDSPL ❑ Plugged ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG [3 Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba t Title Regulatory Compliance Representative Signature v 0 ,,.... 1%7 (907) 283-1371 Date September 29, 2010 r COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 / (.. '" -J -)-- 7 Plug Integrity ❑ BOP Test Ei Mechanical Integrity Test ❑ Location Clearance ❑ Other: �, SO P to 450 a 9 c T s - RECEIVE SEP 2 9 20; ,(� Subsequent Form Required: 10 — 4 t2 7 f ,, , (A. L-.t ( (,d YEA /Q- T gr^- • i t'� & &as Coat. Cr‘' '' .; v s RA APPROVED BY �itit; �� jj o� //0 Approved by: COMMISSIONER THE COMMISSION D ate: C-, l RBDAAS OCT Vit 441 Form 10-403 Revised 12/2009 O R I G I N A L Submit in Duplicate • • MARATHON Paxton 4 Ninilchik Gas Field - Paxton Pad Casing Shoe Cement Procedure APPROVALS: Nick Miller 9 -28 -2010 Program Writer Well Status: Drilled waiting on completion Obiective: Methodology is to drill out wiper plug, dean out cement below wiper plug to casing shoe, test shoe to 1000# for ten minutes. If test fails, set wire line set BP and dump bait 25 feet of cement on top of plug. Let set for 24 hours and pressure test tubing Procedure: { 1. MIRU BJ Services 1 -3/4" coil tubing unit, nitrogen unit and fluid pump truck. Test nitrogen lines to 6000 psi. Install BJ flow cross to top of 4- 1/16" 5M valve. Flange up BOP to top of flow cross. Make up lubricator to injector head. Pick up injector head and lubricator with ASRC crane. Make up CT injector head and lubricator to BOP's. RU MOC 2" flowback line, MOC flowback tank and a 5K mpaifold to BJ pump truck. Pressure test CT BOPE with methanol water to 250 low /4 00 high psi. Pressure test flowback iron to 250 low /4500 high psi with methanol water BJ. 2. MU coil connector and pull test to 10,000 lbs. Pressure test connector to 250 low and 4,500 psi high for 10 and 10 minutes respectively. 3. MU Baker Extreme Motor and 3.80" OD superloy mill. Measure /record actual OD's, ID's, length and ball sizes. Fill coiled tubing reel noting volumes on barrel counter /displacement tanks. Compare with theoretical coiled tubing reel volume ( +- 28 bbls). Pump test motor and continue RIH. 4. RIH @ 80 -100 fpm and 10 fpm at restrictions (CIM @ 1505'). Circulate at minimum rates to minimize coil fatigue (0.25 BPM or slightly higher to maintain returns). 5. RIH to a depth of 3,100' - perform pull tests every 3,000 ft as necessary. Increase fluid pump rate to 1.75 BPM, compare results with CIRCA predictions. 6. Continue to 6,400' and slow down to tag 4 -1/2" wiper plug at 6,453' MD. PU 25 ft. and increase fluid rate to 2 BPM. RBIH to mill top of rubber wiper plugs and landing collar. Work slowly through aluminum landing collar seat and minimize motor stalls by minimizing weight on superloy mill. 1 - 1 • • 7. Once plugs and seat are milled up, perform a wiper trip of 100 ft. to confirm that full drift has been milled through. Monitor returns at surface to establish fill removal efficiency. It may be necessary to pull back up into the vertical section to make hole cleaning sweeps during milling process. NOTE: Remain pumping 2.0 bbls /min and milling while tripping in the hple. 8. RBIH to Float Collar 649 ' MD while working through cement and cement stringers. If solid cem found directly below the landing collar, do not continue milling to float collar @ 6494' MD and move to next step. Pump for 20 minutes to verify that well is clean of any possible cement debris that was milled up. Once returns are clean, POOH to vertical section. NOTE: Do not interrupt circulation while lifting fill out of the hole. 9. Pressure test 4 -1/2" liner to 1000 psi. If finer test is successful, move on to running the CBL. If liner test fails, continue milling cement stringers to float collar @ 6494' MD and follow contingency step below. RD BJ Coil. 4 10. MIRU Expro wireline with grease head to set CIBP and dump bail 25 ft. cement utilizing 318 WellTec tractor. RIH w/ 4 -1/2" 5k CIBP, tag float collar @ 6494'MD and P/U 1 ft to place CIBP in position. Set CIBP and POOH. MU dump bailer with appropriate cement slurry. Make two runs with 3" dump bailer and place 25' cement on top of CIBP. POOH and wait 24 hours on cement. Pressure test 4 -1/2" liner to i 1000 psi prior to running CBL. 2 li PAX -4 Paxton Pad 41 Permit #: 210 -064 678' FNL, 2,940' FEL API #: 50- 133 - 20589 -00 -00 Prop, Des: ADL - 384372 �i Sec. 13, T1S, R14W, S.M. KB elevation: 171' (21' AGL) Conductor Latitude: 60° 05' 51.07" N — 20" X-65 129.45 ppf PE Longitude: 151° 35' 41.25" W 0.625 Wall Thickness Spud Date: 5:30hrs 6/8/10 t ' Top Bottom ' 117' TD Date: 6/19/10 Tvo MD 0 o' 11 Rig Released: 18:00hrs 6/24/10 PA #: '� Surface Casing 9 -/8" L -80 40 ppf Butt T Bottom MD 0' 2,494' i ; TVD 0' 1,417" 12 -1/4" hole Cmt w/ 601 sks (282 bbls) of Chemical Injection Mandrid 11.8 ppg Type -1 cmt. 202sks (95 bbls) to surface @ 1,505' MD , Tie -Back Tubing 4 - 112" ZXP Liner Top Packer ° 4 L 12.6 ppf IBT Tap Bottom (1,142' MD) I I' MD 0' 1,955' TVD 0' 1,314' Liner Hanger 4 1 Baker 9 -5/8' by 4 -1/2 " Production Liner (1,925' - 1,965' MD) 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 1,905' 6,578' TVD 1,302' 4,534' 8 -1/2" hole Cmt w/ 1,086 sks (325 bbls) of 14 ppg Type -1 cement. — 200sks (60 bbls) to surface. Did not bump plug. i KOP @ 160 ' MD /TVD Build 3.6 °1100" from 160' - 2,400' MD • Hold 80° from 2,400' - 3,700' MO Drop 2.7 °/100' to 5,250' MD . Final angle 37.6° at 6,494' MD @ PBTD Azimuth: 32.4 deg. Betuga Perf s: MD TVD Ft Gun Type Date B1 Marker Joints (MD): B1 @ 4,406' B2 @ 5,988' B2 TD PBTD 6,953' MD 6,494' MD 3,831' TVD 3,468' TVD Well Name & Number: Paxton #4 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): Perf (TVD): Angle @ KOP & Depth: Angle @ Perfs: Date Completed: Ground Level: 150' (AMSL) RKB: 21' (AGL) Revised by: Kevin Skiba Revision Date: 7/12/2010 • s SIREE CIEF ALASEA SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Rowland C. Lawson Advanced Drilling Engineer Marathon Oil Company 3201 C Street, Suite 800 Anchorage, AK 99503 Re: Ninilchik Field, Beluga Pool, Paxton #4 Marathon Oil Company Permit No: 210 -064 Surface Location: 678' FNL, 2940' FEL, Sec. 13, T1S, R14W, S.M. Bottomhole Location: 1729' FNL, 164' FWL, Sec. 7, T1S, R13W, S.M. Dear Mr. Lawson: 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. Sincer , 1 Jo .q or - a C. , mi ioner DATED this2 day of May, 2010. cc: Department of Fish & Game, Habitat Section w/o encl. (via e -mail) Department of Environmental Conservation w/ o encl. (via e -mail) • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION MAY 1 4 2010 -sl ' PERMIT TO DRILL osiI2.oto 20 AAC 25.005 V®LgtGasCt la. Type of Work: lb. Proposed Well Class: Development - Oil ❑ Service - Winj ❑ Single Zone ❑ lc. Specify osed for: Drill El Redrill ❑ Stratigraphic Test ❑ Development - Gas El Service - Supply ❑ Multiple Zone SI Coalbed Gas ❑ Gas Hydrates ❑ Re -entry ❑ Exploratory ❑ Service - WAG ❑ Service - Disp ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket Ei Single Well ❑ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 Ninilchik Unit - Paxton #4 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 6,953' TVD: 3,802' Ninilchik Unit 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Beluga Pool Surface: 678' FNL, 2940' FEL, Sec. 13 T1S, R14W, S.M. Fee Lease Tract 163, Sec 13, T1S, R14W, S.M. Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1,916' FSL, 937' FEL, SEC.12 T1S, R14W, S.M. 6/7/2010 Total Depth: 9. Acres in Property: 14. Distance to Nearest Property: 1,729' FNL, 164' FWL, SEC 7 T1S, R13W, S.M. 33.21 365' from Tract 30(Cook Inlet Region Inc. C - 061505) 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL: 171 feet 15. Distance to Nearest Well Open Surface: x- 206389.90 y- 2230683.80 Zone- 4 GL Elevation above MSL: 150 feet to Same Pool: 2420' from Paxton #3 16. Deviated wells: Kickoff depth: 160 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 79.8 degrees Downhole: 1819 Surface: 1186 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" 129.25 X -65 PE 96' 0' 0' 117' 117' Driven 12 1/4" 9 5/8" 40 L -80 BTC 2,479' 0' 0' 2,500' 1,419' 606 SXS V 8 1/2" 4 1/2" 12.6 L -80 Hydril 563 4,653' 2,300 1,384' 6,953' 3,802' 1078 SXS / 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: Property Plat 0 BOP Sketch p Drilling Program 0 Time v. Depth Plot ❑ Shallow Hazard Analysis❑ Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Rowland C. Lawson Title Advanced Drilling Engineer ,mot Signature ( -� Phone 907 - 394 -0953 Date % a.. y ) � � .2 0! y 0 Commission Use Only / Permit to Drill API Number: Permit Approval {/ J ` ) See cover letter for other Number: 2/Z9'9 50, 'Q$�OQQQ Date: I �f � U requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: e Other: -p Samples req'd: Yes ❑ No V Mud log req'd: Yes ❑ No Te.c pop E -to ZOOQ ' D s (, H measures: Yes ❑ No V Directional svy req'd: Yes ® No ❑ APPROVED BY THE HE COMMISSION DATE: 5 ,674 - A COMMISSIONER C Form 10 - 401 (Revised 7/2009) This permit is valid for 24 months from the date of approval (20 AAC 25.005(g)) Submit in Duplicate • • Paxton 4 Marathon Oil Company Drilling Program Alaska MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Ninilchik Field Paxton 4 Originator: Rowland C. Lawson May 17, 2010 Date Reviewed by: Ray Steppe Date Jeff Day Date 5/18/2010 Page 1 of 18 • • Paxton 4 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 6 4.1 General Well Data 6 4.2 Working Interest Owners Information 6 4.3 Geologic Program Summary 6 4.4 Summary of Potential Drilling Hazards 7 4.5 Formation Evaluation Summary 7 4.6 Drilling Program Summary 8 4.7 Casing Program Summary 10 4.8 Casing Design 10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) 10 4.10 Casing Test Pressure Calculations 11 4.11 Blowout Prevention Equipment, Testing and General Procedures 12 4.11.1. Function Testing 12 4.11.2. Pressure Testing 13 4.12 Wellhead Equipment Summary 13 4.13 Directional Program Summary 13 4.14 Directional Surveying Summary 14 4.15 Drilling Fluid Program Summary 15 4.16 Drilling Fluid Specifications 15 4.17 Solids Control Equipment 16 4.18 Cement Program Summary 17 4.19 Bit Summary 17 4.20 Hydraulics Summary 18 4.21 Formation Integrity Test Procedure 18 5/18/2010 Page 2 of 18 • 1 Paxton 4 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 • 5/18/2010 Page 3 of 18 • • Paxton 4 Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °05'44.074 "N Longitude - 151°36'39.026"W (NAD 83) From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on Ground Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go 16.9 miles. Turn South on Sterling Highway, go 21 miles. Turn West onto road to the pad (Sterling Highway milepost 131.2). 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 832 - 531 -6902 907 - 394 -1321 Marathon Supervisor 832 - 531 -6901 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: 5/18/2010 Page 4 of 18 • • Paxton 4 Marathon Oil Company Drilling Program Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Rowland Lawson Drilling Engineer 907 - 283 -1312 907 - 394 -0953 907 - 394 -1313 Ray Steppe Drilling Superintendent 713 - 296 -3268 281 - 799 -4301 713 - 499 -3341 Jeff Day Drilling Manager 713- 296 -3217 405 - 623 -0375 713 - 499 -6718 David Gorney Geologist 713- 296 -3390 713 - 301 -9834 Clyde Scott Reservoir Engineer 713- 296 -2336 Nick Miller Completion Engineer 713 - 296 -1920 713 - 294 -1735 Mickey Mullin Production Engineer 907 - 283 -1337 907 - 398 -9954 Rowland Lawson Drilling Supervisor 832 - 531 -6901 907 - 394 -0953 907 - 283 -1313 2. Regulatory Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title Office Phone CeII Phone Home Phone Facsimile Tiffany Stebbins Regulatory Compliance 907 - 565 -3043 907 - 529 -0522 2.1.2. External Regulatory Contact Contact Title Office Phone Facsimile 24 hr Emergency Pager AOGCC 907 - 793 -1236 AOGCC North Slope Pager - 907 - 659 -3607 BLM 907 - 267 -1442 3. Regulatory Compliance Regulation Requirement Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig, if going to Ninilchik or Kasilof. BOP testing interval requirement is now 14 days (20 AAC 25.035 e 10 A). BOP Testing Requirement for a 24 hour notice to AOGCC (20 AAC 25.035 e 10 F). Prior to Spud Requirement for a 24 hour notice to AOGCC. Water Sampling Test the rig camp water for the Class C drinking water permit. Cuttings Tank Take picture of cutting tank in use and after cleaning for the ADEC. Comments 5/18/2010 Page 5 of 18 • • Paxton 4 Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name Paxton 4 Lease / License Surface Location 678'FNL, 2940'FEL, Sec.13 , T1S, R14W, S.M. WBS Code DD.09.21421.Cap.Dr1 Slot/Pad Paxton Pad Field Ninilchik Unit Spud Date 6/07/10 (est.) KB (above MSL) 171' County /Province Kenai Peninsula API No. GL (above MSL) 150' State / Country Alaska Permit No. Perm. Datum KB Total MD 6953' Well Class Development Water Depth N/A Total TVD 3802' 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 60% P.O. Box 196168 907- 561 -5311 907 - 565 -3076 Anchorage, AK 99519 -6168 Chevron 40% 4.3 Geologic Program Summary Surface Location Coordinates — NAD 83 From Lease /Block Lines 678' FNL, 2940' FEL, Sec. 13, T1S, R14W, S.M. Latitude 60° 05' 44.423" N Longitude 151° 36' 39.236" W UTM North (Y) 2230442.69' UTM East (x) 1346409.36' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressur Possible Formation (ft) (ft) (psi) (p ) Lithology Fluid Content Beluga B1 (Primary Target) 4,147' 1,782' 7. — 8 Sandstone Gas Beluga B2 (Primary Target) 5,312' 2,501' 7.` — 8 / Sandstone Gas 5/18/2010 Page 6 of 18 • • Paxton 4 Marathon Oil Company Drilling Program Alaska Horizontal Depth (KB) Displacement (ft) MD TVD +N / -S +E / -W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Beluga B1 4,147' 1,782' 1916' FSL, 937' FEL, Sec. 12, T1S, R14W, S.M. 2,592' 2,002' Circle 100' radius Beluga B2 5,312' 2,501' 2527' FNL, 379' FEL, Sec. 12, T1S, R14W, S.M. 3,320' 2,537' Circle 100' radius TD 6,953' 3,802' 1729' FNL, 164' FWL, Sec. 7, T1S, R13W, S.M. 4,153' 3,090' Circle 100' radius Comments: 1. There are no zones from surface to TD that have water with a TDS of 10,000 ppm or greater. 2. No zones above the Beluga B1 (4,147' MD, 1,782' TVD) contain oil or gas. 3. The proposed top of cement is greater than 500' above the Beluga B1, the highest known hydrocarbon bearing zone. 4.4 Summary of Potential Drilling Hazards Depth KB Hazard Event (TVD) Discussion Precautions Bit or BHA balling Surface Hole Maintain high pump rates to keep bit and BHA clean. Use extra circulation time if necessary. Production Use good hole cleaning techniques with high pump Excessive pumping on bottom could Excessive Torque Hole rates. Add lubricant where necessary. result in hole washout. 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 inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H is anticipated. Gas sands will be encountered from +1- 4,147' MD (1,782' TVD) to total depth of the well. These sands will run from slightly depleted to above normal pressure. Lost circulation and differential sticking are potential hazards in some of the 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 be available on location for proper well control. Best Practices: 1 Comments: 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None Monitor gas and collect drilling dynamics data. 0' — 2,500' MD Production None Baker Hughes Quadcombo LWD, Basic with GCA, shale density, temperature in and 2,500' — 6,953' MD MagTrack . Pull GR- Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 5/18/2010 Page 7 of 18 • • Paxton 4 Marathon Oil Company Drilling Program Alaska 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 100', prior to drilling rig move. MIRU drilling rig. NU the 21 '/4" diverter on the conductor. 1. RU Kraxberger Drilling and Drill -in 20" conductor. Drill -in 20" conductor to +/ -100 ft. RKB. RD Kraxberger Drilling rig. 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 12 1/4" hole to +/- 2,500' set 9 -5/8" casing. 1 . Drill a 12 1/4" hole to 2,500' MD ( ,44 ' VD) per the directional plan. Note: Gyro surveys will be required from spud to approximately 700' to avoid c on with the Paxton #3 well. 2. At TD circulate hole clean. Make wiper trip. TOOH. 3. Run and cement 9 5/8" casing. 4. Cut off 9 5/8" casing. ND diverter. 5. Install 9 5/8" slip lock connection X 11" 5M flanged multibowl wellhead. 6. NU 11" 5M X 13 5/8 "5M adapter spool. N/U 13 5/8" 5M spacer spool. NU 13 5/8" 5M BOP'S. Test BOP's and choke manifold to 0/2,00 psi. 7. Set ushing. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Production: Drill 8 1/2" hole to +/- 6,953' set 4 -1/2" liner. Tie back to surface with 4 1/2" tubing. 1. PU 8 1/2" PDC bit an ro ary steerable directional BHA. Baker BHA will include LWD Quadcombo and Magtrack. Drill out float equipment and 0' f new formation. CBU. 2. Test shoe to a FIT 5 ppg. Estimated Leak Off EMW is 18.0 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 6,953' MD (3,802' TVD) as per the directional program, short tripping as required. 4. At TD circulate the hole clean. Make a wiper trip. 5. Make any additional passes for additional LWD as required by Geologist. 6. TOOH and lay down BHA. Pull wear bushing. 7. P/U 8 ''/2' bit and BHA. Make a cleanout trip to TD. POOH and L/D BHA. 8. 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 ,30 ' MD. On bottom reciprocate and rotate liner while circulating the hole. 9. RU cementing company. Cement 4 1/2" liner while reciprocating and rotating pipe. Drop wiper plug and displace with liner volume of viscosified brine followed with mud. 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. 10. Circulate hole clean. If cement circulates, TOOH. If cement doesn't circulate, WOC, then prepare and pump liner top job. 5/18/2010 Page 8 of 18 • 0 Paxton 4 Marathon Oil Company Drilling Program Alaska 11. Once cement is either circulated or the liner top is squeezed, PU a polish mill assy for the 4 1/2" X 9 5/8" liner. Make a cleanout trip to the top of the 4 1/2" liner with the polish mill assy on drill pipe. Polish the 4 1/2" liner seal bore. 12. Run a 4 1/2" liner hanger packer with hydraulic pusher tool. Stab into polish bore receptacle. Set the packer. Test casing to 1500psi. TOOH laying down the drill pipe. 13. Set 11" x 7" spacer bushing in the lower multibowl section to allow the 4 1/2" tubing hanger to set in the upper multibowl section. 14. Run the 4 1/2" tubing with seal unit. Displace the hole with 3 % KCL. Space out tubing and land hanger. Set BPV and ND BOP, NU tree. Pull BPV and set TWC. Test tree to 5,000 psi. Pull TWC and set BPV. 15. Rig down and move out the drilling rig. Best Practices: 1 Pre -heat mud mix water t Ip in early shaker screen blinding issues with the mud. 2 Drill all hole sections wit 5' drillpipe to maximize hole cleaning hydraulics. 3 Do not circulate on bottom longer than 1 hour prior to moving pp i e on a short trip to minimize hole washout. 4 Put lubricant in prior to drilling out surface shoe. 3 -5% LoTorq is normally required, possibly more depending on solids in the mud. Maintain a minimum of 3% throughout the hole section. Comments: Care must be taken on trips to minimize the possibility of surging the hole. Completion: Completion will be done without a rig. 1. The completion will encompass work to run a cement bond log, displace the well fluid with nitrogen, perforate several Beluga intervals, and test the well for rate and pressure. The testing process will include the possibility of venting 20mm cu ft of gas over a 168hr period. No stimulation of the perforated intervals is anticipated. 5/18/2010 Page 9 of 18 0 Paxton 4 Marathon Oil Company Drilling Program Alaska 4.7 Casing Program Summary MD (ft) Connection API Ratings • Casing Makeup Hole L .. o o 0 TA 713 0. Size Weight ID Drift O. D. Torque Size m °' U ° a H Y (in) Top Bottom (Ibs /ft) (in) (in) Grade Type (in) (ft-Ibs) (in) 9 5/8 0 2,500 40 8.835 8.679 L -80 BTC 10.625 N/A* 12 1/4 5,750 3,090 916 41/2 2,300 6,953 12.6 3.958 3.833 L -80 Hydril 563 5.200 8,500 81/2 8,430 7,500 288 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: 1 ALL CASING WILL BE NEW CASING. / 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum y Casing Depth Mud Wt Frac. Form Surface C 0 g Size Weight TVD When Set Grad Press Pressure o a (in) (lb/ft) Grade (ft) (lb/gal) (lb/gal) (lb/gal) (psi) 00 U i- 9 5/8 40 L -80 1419 9.4 18.0 8.3 1,186 3.64 4.46 3.49 "7 41/2 12.6 L -80 3,802 9.5 16.5 9.2 1,186 1.12 4.00 2.07 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth . Size TVD MAWP * MASP ** Mud /Gas z (in) (ft) (psi) (psi) Percentage 9 5/8 1,419 3,944 1,186 0/100 4 1/2 3,802 3,944 1,186 0/100 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure 5/18/2010 Page 10 of 18 Paxton 4 Marathon Oil Company Drilling Program Alaska Surface casing: 9 5/8" (2,500' MD, 1,419' TVD) MASPfr = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (18.0 ppg x .052 x 1,419') - (0.1 psi /ft x 1,419') MASPfrac = 1,328 psi - 142 psi MASPfr = 1,186 psi. MASPbhP = BHP • open hole td — Hydrostatic pressure of 100% gas column MASPbhP = (9.2 ppg x .052 x 3,802') — ( 0.1 psi /ft x 3,802') MASPbhP = 1,819 psi — 380 psi MASPbhP = 1,439 psi MASP = MASP = 1,186 psi / MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (9.4 — 8.3) x .052 x 1,419' MAWP = 4,025 psi — 81 psi = 3,944 psi Production liner: 4 1/2" (Top — 2,300' MD, 1,384' TVD) (Bottom — 6,953' MD, 3,802' TVD) MASP = MASP95i8° = 1,186 psi MAWP = MAWP9 /8" = 3,944 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 test pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 5/18/2010 Page 11 of 18 • Paxton 4 Marathon Oil Company Drilling Program Alaska 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP press Density BOPS Low /High Casing (in) (psi) (psi) (psi) (lb/gal) Size & Rating (psi) (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Surface 9 5/8 3,944 1,186 1,500 9.4 (1) 13 5/8" 5M blind ram 250/2000 / (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 3,944 1,186 1,500 9.5 (1) 13 5/8" 5M blind ram 250/2000 (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M pipe ram Blowout Preventers / Z The blowout preventer stack will consist of a 13 -5/8" x 5000 psi annular pr;eventer, 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. I will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor -boy gas buster, and a vacuum -type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. 5/18/2010 Page 12 of 18 Paxton 4 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. BOP testing interval requirement is now 14 days (20 AAC 25.035 e 10 A). Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 11" 5M X 9 -5/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 11" x 7" bushing Tubing Head 11" 5M Studded Bottom X 11" 5M Flg Top, W/ 2, 2- 1/16" 5M Studded Outlets, U,AA,PSL1,PR1 11" x 4 1/2" Fluted Mandrel Adapter Flange 11" 5M X 4- 1/16" 10M W/ Seal Pocket and 4" H BPV Threads Best Practices: 1 Comments: 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') (° /100') (deg) (deg) (ft) (ft) (ft) 1 Tie On 0 0 0 0 0 0 37.683 0 0 0 2 KOP 160.00 160.00 0 0 0 0 37.683 0 0 0 3 Build up Section 5.00 0 5.00 37.683 4 End of Build 1,756.50 1,287.89 5.00 0 5.00 79.825 37.683 746.68 576.74 943.33 5 Hold Section 0 0 0 79.825 37.683 6 End of Hold 3,683.15 1,628.25 0 0 0 79.825 37.683 2,247.46 1735.97 2,839.37 7 Drop Section -4.00 0 4.00 37.683 8 End of Drop 4,146.90 1,782.00 -4.00 0 4.00 61.275 37.683 2,592.02 2002.10 3,274.68 9 Hold Section 0 0 0 61.275 37.683 10 End of Hold 4,353.00 1,881.05 0 0 0 61.275 37.683 2,735.06 2,112.59 3,455.39 I 11 Drop Section #2 -2.48 -.61 2.50 37.683 12 End of Drop 5,312.34 2,501.00 -2.48 -.61 2.50 37.535 33.563 3,320.00 2,537.48 4,178.31 14 TD 6,952.98 3,802.00 0 0 0 37.535 33.563 4,152.90 3090.09 5,176.41 5/18/2010 Page 13 of 18 . • Paxton 4 Marathon Oil Company Drilling Program Alaska o — -- -- - I _ - - -- Pt 4 Bottom 500— - - I I I I Paxton o m Hole j 4000 I 9 5/8 _ - "E'. 1000 - - -__ - , - I - i�. >._ -- -- -- N 1500 ( 0 3000 �• Paxton 4 Beluga B2 N - C4 'axton 4 Beluga B1 _ 0 2000 Paxton 4 Beluga B1 0 C 2000— m 0 2500 - Z .- - i Paxton 4 Beluga B2 - _ > L 2 3000— , I o I I— i -- - - - - - -- lO 1000 — 1 3500— _ - _ - - Paxton 4 Bottom Hole [ 4 1/2" -- - -- ' - -- I 0 I 4000 ■ -1000 0 1000 2000 3000 4000 5000 6000 -0 1000 2000 3000 4000 Vertical Section at 36.652° (2500 ft/in) West( -) /East( +) (1500 ft /in) Comments: Vertical section calculated from a reference azimuth of 36.65° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) Paxton #3 17.63 456 Paxton #2 73.86 0 Paxton #1 109.92 168 No serious interference exists. See attached directional plan and clearance 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 -550' X Interference w /Paxton 3 Surface 550 – 2,500' X Production 2,500' – 6953' X Best Practices: 1 Comments: 5/18/2010 Page 14 of 18 • ! Paxton 4 Marathon Oil Company Drilling Program Alaska 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (lb/gal) Fluid Description Additives Viscosifier Barite 0 1,419 8.8 — 9.4 Gel / Gelex Spud Mud Gel, Gelex, Caustic Flo -Vis, PolyPac UL, KCI, SafeCarb F &M, 1,419 3,802 8.9 9.� 3% Flo -Pro NT w/ Safecarb Asphasol Supreme, Lo Torq, Congor 404, Sodium / Meta Bisulfite, Klagard 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 (° /a) 0 1,419 8.8 -9.4 60 -100 N/A 15 -24 >30 <18 8.0- 9.0 <6 1,419 3,802 8.9 30,000 — ._,/ 40,000 10 -16 12 -8 5 7 9 -9.5 <6 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 in the tubing annulus. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) and graphite will be used to control leakoff. 5/18/2010 Page 15 of 18 • Paxton 4 Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment o rn N @ t C V cn N N Y m '= U c c CI as w a i > > iu Interval 0 0 U U U N Comments 0 — 6,953' 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 1 — 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: 5/18/2010 Page 16 of 18 • • Paxton 4 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) 20 117 117 DE N/A 9 5/8 2,500 1,419 12 1/4 0 0 911 4 12.0 75 8 41/2 6,953 3,802 81/2 2,300 1,384 1,328 ° 59 •-•• 14.0 40 4:52 Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (lb/gal) (sx _ (ft /sx) (ft ( ft) (gal /sx) Type (cc) ( %) 8 hr 24 hr 9 5/8 Tail Type I Cement 12.0 0/- 2.48 1 4 0 10.33 Fresh 620 0 440 1879 4 1/2 Tail Type I Cement 14.0 1078 / 1.71 2,300 8.349 Fresh 24 0 167 901 ► 447) 14Cale- Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: 1. Cement volumes on the production hole are based on 40% over gauge hole. Once the caliper log is obtained the team will need to discuss final excess. 2. Volume calculations assume 80' of internal cement for the surface shoe track and 120' for the production shoe track. See cement prognosis for details and spacer specifications. 3. Centralizers for the casing strings will include at least 1 per joint on the bottom 3 joints as per BLM regulations. 4.19 Bit Summary Interval — MD Type Recommended Estimated Expected From To Size WOB Rotating Minimum ROP (ft) (ft) (in) Manufacturer Model No. IADC (kips) RPM Hours (ft/hr) 0 2,500 12 1/4 Christensen MX -1 115 27.5 - 65 Motor 2,500 6953 8 1/2 Christensen HCM 506Z M323 Up to 29 Motor Best Practices: 1 1 Comments: See bit prognosis for additional information. Back up bits for the 8'/2' hole section will consist of an MXL- 18DX (IADC 447) bit. 5/18/2010 Page 17 of 18 Paxton 4 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 © at bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32 "s) (psi) Remarks (Drill string configuration) 2 -18's 0 — 2,500' 12 1/4 700 2,077 137 9.4 10.25 191 MI Virtual Hydraulics (@ 2,500' MD) 1 -16 2,500' — 6,953' 8 1/2 450 1,739 232 9.5 11.26 6 — 13's 296 MI Virtual Hydraulics (@ 6,953' MD) Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. Comments: See separate hydraulics calculations. Annular velocities in the 12 1/4" and 8 1/2" holes were calculated using 5" drillpipe. 4.21 Formation Integrity Test Procedure The surface casing shoe will be tested to an FIT instead of Leak -off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak -off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut -in for 10 minutes or until the shut -in pressure stabilizes. FIT tests are to be conducted the same as described by the LOT test above, except in step 4, where the pumping would stop at the specified pressure to achieve an FIT required. Note that leakoff is always possible, prior to the specified FIT, due to formation variations. Best Practices: 1 Comments: 5/18/2010 Page 18 of 18 • Marathon Oil Well Paxton 4 Diverter Flow line 1 1 121 1/4" 2M Diverter — 1 16" Automatic Knife Valve r (Diverter Spool I ■ 116" Diverter Line 1 • • Marathon Oil Well Paxton 4 BOP Stack (Flow Nipple Flow Line 1 I 13 5/8" 5M Annular Preventer C I 1 13 5/8" 5M Double j Ram Preventer (Pipe Ram 1 2 1/16" 5M 'Blind Ram 1 i Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves < Operated Valve N ii( ` J X -- :1---X Imo- Kill IChokel [© It J i I t 113 5/8" 5M Cross 1 ) < 3 1/8" 5M Hydraulically (Pipe Ram s Operated Valve r 13 5/8" 5M Single -► Ram Preventer > < Bottom of Single gate must be 1 14 24 -45" from ground level for Glacier 1 rig placement. 135/8 "5Mx135 /8 "5M Drilling Spool i'q-■_ 5M x 13 5/8" 5M DSA 1 • • Marathon Oil Well Paxton 4 Choke Manifold / To Gas Buster To Blooey Line Bleed off Line to Shakers I I I I I I 4111 0 411) 1 1 P , , 1 I 1 1 0 .00 _ [ o,I _ [ I 1 I 11 11 I► 1I I 1 1 1 I 1 I 1 ,) r\ ar. , 1 Tir To — r Aliri 1.711eAl .111 Q VP u MINN ■ 1 11(011111(0 11 o0 0 1110 II R 1 I 1 3" 5M Valves 0 2 9/16" 10M Swaco 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke I Gauge Block �I Choke Hose to HCR � 14...,,,.,..., (from BOP Stack) 0 - 6,000 psi Choke Control Pressure Gauge Pressure Sensor Poorboy degasser tSib 00000000 0 00000 Is, 0 1 . '-' Mud pump engines i MONEY 4'-' X 1Y -10' - . 1 i — L ) a ! j � , ', +❑'❑! i ❑!o- �„'I ..■ MUD-PUMP TRAILER LAYOUT AND 1 1�11!i 1 i 11 �R 3 , EQUIPMENT LOCATION PLAN I e 75 W n HP Mix i1 1 *2 Charg. u mm 61 & 62 .... � ( • 'I 6X 6X5 6X5 6X5 ' 4 • 14' 14' 14' W : , 4 4 ...ervne • I Mini pump N1 Mud pump $2 f �.� : il - i s ��' (` I I [ PA P Y1 L: 1 41 uuumt _ L L i i � 1 i; 11"1'8"11 5 I ! / I , kWh ,r , /fi # �r � I . tl, MUD TRAILER LAYOUT AND B i _ . V EQUIPMENT LOCATION PLAN T` 1111 V_ \ � W I l t ! I 1 I II i ii ti � ��} i � � Ill i �� "��Y ' 1NI Mixin ho �__ ��1 M�I�r1r�� MN , ' . i��'� ..w.. ;�1, nr Y0 i � I� � Agitators ql & $2 _ Desllter Vacuum degasser Shale shaker N1 & 42 I . it . • " � � , _ _ Cuttings box r,a 411 - fi -1 - 1 I - Centrifuge nodule • • 12 7 / SECTION LqE (NfS) NE CORNER S13 1318 N 2236478.07 E 209473.00 .."' \ `�, NORTH �- NOTES 1. BASIS OF ELEVATIONS IS NGS MONUMENT S 82 PID TT0583 AT MILE POST ^ - 124.2 OF THE STERLING HIGHWAY. THE ELEVATION OF S82 IS 23712 FEET �6..■ (NGVD 29). BASIS OF HORIZONTAL COORDINATES ARE ALASKA STATE PLANE SCALE NAD 83 ZONE 4 EPOCH 2003 DETERMINED BY AN NGS OPUS SOLUTION FROM 0 100 II COBS BASE STATIONS "TLIGI PE AH2494 ", "ZANI PID DE9153" AND "GNAA PID 1 / AH2492' OBSERVED JUNE 5.2007 ON MCI S82 ECC 2" ALUM. CAP SET / FEET I ADJACENT TO BM S82 N: X17.780 E: 1368533.525 ELEV: 240.08 FEET. 2) NORTHEAST CORNER SEC. 13 COORDINATES DETERMINED FROM DIRECT SURVEY TE TO THE TO EXISTING BLM SECTION CORNER RECOVERED NOT `` r`\ \ \\ PROTRACTED SECTION CORNER VALUES. ,� A OF At /I yi I _ . ♦ LEVER ALDERS A a ax t '_ BRUSH • // �� yy TLS i � ..1% per 6E ,a - a<o+. - �'�T�` �' DWI IOW ALDERS & V • TT M NE . 0110 e _ _ a' • ��JJJ"' .. r % N � / I . i 5 BASE VMS z u_ NINIL IK, PAXT ' bo l ` t2DK DRAWAGE II TAWC V CHAnNEL I � i 1 / J � j / 4 6, I i t ppg, / / V � . , i ��Y P � ' J WAY 2 4� 8 ^� A 70'DIA. ..�.. OR Q W w.• x CEP r / ` 4, I ON N T . { rn T � /� gRID E2°E3°12°i 8' DUI CSP ". ' ELEV. IBT s y PAXTON NO.4 6‘419 , f' N:2230683.80 od PAX E.206389.90 B. LATITUDE: 60 °05'46.567 "N LONGITUDE: 8 ' X �' 151 °36'31.567"W END NAD27 ASP ZONE 4 SECTORS �``` ..... FEL = 2940' FNL = 678' ,` ' * , ELEV = 148.6' (NGVD29) , SECTION 13 j � f X01BB TOWNSHIP 1S / - t� `i RANGE 14W, SM AK 1 LEVEL u181801.80A80NAL SPREADER MANAGE MAWR. ..43121.k, Veit 1 ^ iu ■ P ROJECT REVISION: 1 M MARATH PAXTON NO.4 WELL DATE: 4108110 OIL CO � Y AS -BUILT WELL LOCATION DIAGRAM DRAWN BY MSM ARATHON AMA. REGION NAD 27 FOR INFORMATIONAL PURPOSES Ste: 1 '= 100 ' ONLY PROJECT NO. 103003 Consulting In WAHL ENGINEERING /MAPPING /SURVEYING /TESTING P.O. BOX 488 SOLOOTNA, AK 9B888 LOCATION BOOK NO. 08 SHEET VOI EMAIL sAMCiAN S13 T1S R14W SEWARD MERIDIAN, ALASKA OF 1 0 • 1 NINILCHIK UNIT 3 ' fIONNE- PAXTON P . 32 36 1N -14W 1N -13W St -> ■ ■ ■ 1S -14W 1S -13W 1 6 .1k, � T ill PAXTON 4 Arra _.... 3000, NOTIF7CATION� 10. 10 RADIUS A 359242 SDIMIML.I Belu BI i� ■ g _ 96T1D/J894TVD f TR 8 (NINILCI 2 3TVD "la ADL 3817]2 Dl Tyooek 1 9S/3)2]��,a NR CHI( I = _ — . 1 --- - •• LUGAB2 25tH a S D -4 'fY 3'MW35 4147%4D/25411W 651 3'MD/JSSBTVD PAXTON3 / :ELUGB * Expected S 3/2010 2TD5'Ma '. 24TYD Est TD W'MD /3843TVD jF Est NEK TI __i= tELUGA 82 r 651 D34)ITVD SI,).- ,n�'�}'O:`!: a6f1 4424' MD /2545TVD l '.'f 568TNV tfTVD 2 ELUG BI / 27251.1. 826TVD I 11 Est Beluga B -2 f X 535014D124801,13 1 z -rr BELVGA B2 � / 4019MDR590TVD / / ` ; Es t BI 3D-7 ONEK TI 11 PAXTON -1 r i bp, 4 52]0'MD/3669'I'VD Allill l ..� / X 1_ lI r : o C- 061505 , TYONEKTJ 8 52771.413/3645 D ' ■ / g a F F r:ia Lt 9 to w BEwcA B2 PAXwNa t 3351'MD2/9]TVU ' ' .. ' TY...: T1 ' 4 :BLDG '1 r 28)]:M.r. �BTV. .. TR 21 iat kill BELUGA BI r DL 3447 Vow of 21 )4'MDl1845TVD Alaska MEI 4;7. TR 31 j , 'J I — TR B ('- 060385 ADL 384332 / TR 163 " �/ 0 PROPOSED PAXTON 4 - 3,000' BELUGA NOTIFICATION RADIUS Tract 8 - Sate of Alaska ADL 384372 Tract 10- State of Alaska ADL 359242, lames W6ne, lama Thurman, Tacr0oo Ltd.. V. Paul Gavora l 8 Tact 21 - Unwervry of (Umv. Tan 02) Tact 30/31 - Cook We Regico, Inc. - C- 061501/C-060309 Tact 148 - lama Sedowskt Leonard & Juanita Sebrowakt Revocable Trust Tact 149 /156/ 161 - Laura Lee Tiernan Lie Estate (W. Lee McKinley. Remaindemun) a Tract 150 - Boyd Daniel Leman ` , Tract 151 - Kenn Peninstda Borough 1 ,s‘ Tact 153 - Steve & Rebecca Bates, Robert Stoddard- Jeanne Pot. Kathleen McConnell ✓ v Tract 156A - Nancy McKinley. Sally Kent, lane Walsh Tract 162/163 - Carol Wilson. Katherin Lune, Patrwa Webster, George Gates. Charles Gates e lS Marathon Alaska Production LLC 1:12000 Ninilchik Unit - Dionne/Paxton P.A. D I Paxton No. 4 KILOMETRES 0 0.50 Location Exception L. J S Exhibit A I MILES I 000 Saar FEBRUARY 2010 m a �w Nan. m.(1wao00W. WM roH; i MAI iVi M RATHON Oil Company �K�R L ocation: Cook Inlet, Alaska (Kenai Peninsula) Slot slot #4 Field: Ninilchik Field (NAD83) Well: Paxton #4 HUGHES MARATHON Facility: Paxton We,ore: Paxton #4 Plot reference wellpath is Paxton #4 Vers. #2 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: 171 feet Scale: True distance Mean Sea Level to Mud line (Facility: Paxton): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 4/12/2010 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Paxton 1349365.170 2231045.670 60 °05'51.066 "N 151°35'41.247"W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude slot #4 - 674.13 - 2940.42 1346409.360 2230442.690 60 °05'44.423 "N 151 °36'39.236"W Comment 8- Apr -10: As -Built survey provided by R Lawson for Definitive planning Glacier #1 (RKB) to Mud line (Facility: Paxton) 171ft Mean Sea Level to Mud line (Facility: Paxton) Oft Glacier #1 (RKB) to Mean Sea Level _ 171ft Survey Program Start MD (ft) End MD (ft) Tool Model Log Name /Comment Wellbore 0.00 2500.00 NaviTrak NaviTrak (Magcorrl) Paxton #4 2500.00 6952.98 AutoTrak G3 AutoTrak G3 (Standard) Paxton #4 Well Profile Data Design Comment MD (ft) Inc ( Az ( TVD (ft) Local N (ft) Local E (ft) DLS ( °/100ft) VS (ft) RKB - 171' 0.00 0.000 37.683 0.00 0.00 0.00 0.00 0.00 KOP 160.00 0.000 37.683 160.00 0.00 0.00 0.00 0.00 End of Build 1756.50 79.825 37.683 1287.89 746.68 576.74 5.00 943.33 Begin Angle Drop 3683.15 79.825 37.683 1628.25 2247.46 1735.97 0.00 2839.37 Beluga T1 - EoD 4146.90 61.275 37.683 1782.00 2592.02 2002.10 4.00 3274.68 Begin Final Drp/Trn 4353.00 61.275 37.683 1881.05 2735.06 2112.59 0.00 3455.39 Beluga T2 Horizon 5312.34 37.535 33.563 2501.00 3320.00 2537.48 2.50 4178.31 TD 6952.98 37.535 33.563 3802.00 4152.90 3090.09 0.00 5176.41 Hole and Casing Sections Start End Start End Start Start End End Name MD (ft) MD (ft) Interval (ft) TVD (ft) TVD (ft) Local N (ft) Local E (ft) Local N (ft) Local E (ft) Wellbore 12 1/4" Open Hole 0.00 2500.00 2500.00 0.00 1419.24 0.00 0.00 1325.83 1024.09 Paxton #4 9 5/8" Casing Surface 0.00 2500.00 2500.00 0.00 1419.24 0.00 0.00 1325.83 1024.09 Paxton #4 8 1/2" Open Hole 2500.00 6952.98 4452.98 1419.24 NA 1325.83 1024.09 NA NA Paxton #4 4 1/2" Liner 2300.00 6952.97 4652.97 1383.91 3802.00 1170.04 903.75 4152.89 3090.08 Paxton #4 Targets Name MD (ft) TVD (ft) Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude Paxton #4 Beluga B1 (NAD83) 12- Jan -10 4146.90 1782.00 2592.02 2002.10 1348474.03 2232985.13 60 0 06'09.949 "N 151°35'59.743"W Paxton #4 Beluga B2 (NAD83) 12- Jan -10 2501.00 3341.88 2558.96 1349049.00 2233721.21 60 °06'17.334 "N 151°35'48.756"W Paxton #4 TD (NAD83) 12- Jan -10 3802.00 4139.45 3102.94 1349612.25 2234505.28 60 °06'25.187 "N 151°35'38.021"W Bottom Hole Location MD (ft) Inc (°) Az ( TVD (ft) Local N (ft) Local E (ft) Grid East (sry ft) Grid North (sry ft) Latitude Longitude 6952.98 37.535 33.563 3802.00 4152.90 3090.09 1349599.73 2234519.03 60 0 06'25.320 "N 151 035'38.274 0W Planned Well path Report VAR' p p Paxton #4 Vers. #2 BAKER MARATHON Page 1 of 6 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #4 1 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #4 Field Ninilchik Field (NAD83) Wellbore Paxton #4 Facility Paxton 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 0.999998 Report Generated 4/12/2010 at 10:16:39 Convergence at slot 1.40° West Database /Source file ,WA_Anchorage /Paxton_ #4.xm1 WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location - 674.13 - 2940.42 1346409.36 2230442.69 60 °05'44.423 "N 151 °36'39.236 "W Facility Reference Pt 1349365.17 2231045.67 60 °05'51.066 "N 151'35'41.247"W Field Reference Pt t 1371967.44 2251649. 60 °09'19.105 "N 151°28'24,639"W WELLPATH DATUM Calculation method Minimum curvature Glacier #1 (RKB) to Facility Vertical Datum 171.00ft Horizontal Reference Pt Slot , Glacier #1 (RKB) to Mean Sea Level 171.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level ; Section Azimuth 36.65° , tie M Planned Wellpath Report Paxton #4 Vers. #2 BAKER MARATHON Page 2 of 6 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Com + an Slot slot #4 MIIIIIII Cook Inlet, Alaska (Kenai Penninsula) 021111111111111Paxton #4 Field Ninilchik Field (NAD83) Wellbore Paxton #4 nalEM Paxton ELLPATH DATA 94 stations = inter , olated/extra I olated station MD Inclination Azimuth TVD North Grid East Grid North DLS Build Rate Turn Rate omments ft ° ° ft ft sry ft sry ft ° /100ft ° /100ftf ° /100ft 0.00 0.001 37.683 0.00 0.00 0.00 0.00 1346409.36 2230442.69 0.00 0.00 0.01 25.00 0.001 37.683 25.00 0.00 0.00 0.00 1346409.36 2230442.69 0.00 0.01 0.00 50.00 0.001 37.683 50.00 0.00 0.00 0.00 1346409.36 2230442.69 0.00 0.01 0.00 75.00 0.001 37.683 75.00 0.00 0.00 0.00 1346409.36 2230442.69 0.00 0.01. 0.00 125.001 0.000 37.683 125.00 0.00 0.00 0.00 1346409.36 2230442.69 0.00 0.01 0.01 150.00 0.000 37.683 150.00 0.00 0.00 0.00 1346409.36 2230442.69 0.00 0.00 ..1 160.00 0.000 37.683 160.00 0.00 0.00 0.00 1346409.36 2230442.69 0.00 0.00 0.001 OP 175.00 0.751 37.683 175. , 0.10 0.08 0.06 1346409.42 2230442.77 5.00 5.01 0.00 ®� 225.00t 3.250 37.683 224.97 1.84 1.46 1.13 1346410.52 2230444.12 5.00 5.00 0.00 250.001 4.500 37.683 249.91 3.53 2.80 2.16 1346411.59 2230445.43 5.00 5.00 0.00 275.001 5.751 37.683 274.81 5.76 4.56 3.52 1346412.99 2230447.17 5.00 5.00 0.00 300.00 7.011 37.683 299.65 8.54 6.76 5.22 1346414.74 2230449.32 5.00 5.00 0.00 350.00t 9.500 37.683 349.13 15.71 12.44 9.61 1346419.27 2230454.89 5.00 5.00 0.0 375.00 10.750 37.683 373.74. 20.11 15.92 12.29 1346422.04 2230458.30 5.00 5.00 0.00 400.001 12.001 37.683 398.25 25.04 19.82 15.31 1346425.15 2230462.13 5.00 5.00 0.00 IIIIIIIIIII 425.00 13.251 37.683 422.64 30.50 24.14 18.65 1346428.59 2230466.37 5.00 5.00 0.00 475.00 11111.1111ESZ 37.683 471.05 43.02 34.05 26.30 1346436.48 2230476.09 5.00 5.00 0.00 500.00 17.000 37.683 495.03 50.06 39.63 30.61 1346440.92 2230481.56 5.00 5.00 0.00_ 525.00 18.251 37.683 518.86 57.63 45.62 35.24 1346445.70 2230487.43 5.00 5.01 0.00 IIIIIMNIIIIII 550.001 19.501 37.683 542.51 65.72 52.02 40.18 1346450.79 2230493.71 5.00 5.01 0.00 1111111111111.1 750.001 29.501 37.683 724.28 148.54 117.57 90.81 1346503.01 2230558.01 5.00 5.01 0.01 850.00t 34.501 37.683 809.05 201.50 159.50 123.20 1346536.41 2230599.14 5.00 5.01 0.01 950.00 39.500 37.683 888.89 261.66 207.11 159.97 1346574.33 2230645.84 5.00 5.01 0.01 1050.00 44.500 37.683 963.18 328.54 260.05 200.86 1346616.50 2230697.77 5.00 INIIIIIME 0.01 ue _ 1 f °t :At } _: Planned Well Vers. p ath Report • Aag Paxton #4 #2 BAKER MARATHON Page 3 of 6 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #4 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #4 Field Ninilchik Field (NAD83) Wellbore Paxton #4 Facility Paxton ELLPATH DATA 94 stations = inter ' olated/extra ' olated station MD Inclination Azimuth TVD North Grid East Grid North DLS Build Rate Turn Rate omments ft ft ft sry ft sry ft °/100ft °/100ft ° /100ft 1250.00 54.501 37.683 1092.91 480.40 380.25 293.71 1346712.25 ' 2230815.67 5.00 5.00 0.01 1350.00 59.501 37.683 1147.35 564.23 446.61 344.96 1346765.10 2230880.75 5.00 5.00 0.00 1450.00 -- -_ _ _.. 1450.00 64.500 37.683 1194.29 652.48 516.46 398.92 1346820.75 2230949.27 5.00 5.00:. 0.00 11111111111111111111111111111 1550.00 69.501 37.683 744.49 589.29 455 1346878 76 2231020.71 5.00 5.00 0.00 11111111111111111111111111111111111 1750.00 ' 79.500 37.683 1286.73 936.9 � 1347000.10 a.__ .... 5. 936.94 741.62. 572.83 1347000 10 2231170.12 , 5.00 5.00 0.00 _111111111 1756.50 79.825 37.683 1287.89 943.33 746.68 576.74 1347004.13 2231175.08 5.00 5.00, 0.001 nd of Build 1850.00 79.825 37.683 1304.41 1035.35 819.51 633.00 1347062.14 2231246.53 0.00 0.00 0.00 1950.00 79.825 37.683 1322.08 1133.76 897.41 693.17 1347124.19 2231322.93 0.00 0.00 0.00 2150.00 79.825 37.683 1357.41 1330.58 1053.20 813.50 1347248.29 2231475.75 0.00 0.00 0.00 2250.00 79.825 37.683 1375.07 1428.99 1131.09 873.67 1347310.33 2231552.15 0.00 0.00 0.00 79.825 37.683 1392.74 1527.40 1208.99 933.84 1347372.38 2231628.56 0.00 0.00 0.00 2450.00t1 79.825 37.683 1410.41 1625.81 1286.89 994.01 1347434.43 2231704.96 0.00 0.00 0.001111111111111111111 2650.00 79.825 37.683 1445.74 1822.64 1442.68 1114.34 1347558 .53 2231857.78 0.00 0.00 0.00 79.825 37.683 1463.40 1921.05 1520.57 1174.51 1347620.57 2231934.18 0.00 0.00 0.00 2850.00 79.825 37.683 1481.07 2019.46 1598.47 1234.68 1347682.62 2232010.59 0.00 0.00 0.00 2950.00 79.825 37.683 1498.74 2117.87 1676.37 1294.84 1347744.67 2232086.99 " 0.00 0.00 0.00 1111 ..,,....�; � �''��- � »_ �:�:�. • �: _,. �F "� --��.. m�_.��_ -max. . . . , . .., ��e. _. ,_:_. .. _ _- ._,._..�..�.�:3....__ ...A��;`�� _.: : 'r._ ..,.�� a �._e_ .....,�.."'�'..... . 3150.00 79.825 37.683 1534.07 2314.69 1832.16 1415.18 ! 1347868.77 2232239.81 0.00 0.00 0.00 ® ®, 3250.00 79.825 37.683 2413.10 1910.05 1475.35 1347930.81 2232316.21 0.00 0.00 0.00_; 3350.00 79.825 37.683 1569.40 INEWES 1987.95 11111160 1347992.86 2232392.62 0.00 0.00 0.00 { 3450.00 79.825 37.683 1587.06 2609.93 2065.84 1595.68 1348054.91 2232469.02 0.00 0.00 0.00 3650.00 79.825 37.683 1622.40 2806.75 2221.64 1716.02 1348179.01 2232621.84 0.00 0.00 0.00 79.825 37.683 1628.25 2839.37 2247.46 1735.97 1348199.58 2232647.17 0.00 0.00 0.001: egin Angle Drop 3750.00 1111111111MEED 37.683 1641.59 2904.86 2299.30 1776.00 1348240.87 2232698.01 4.00 -4.00 0.00_ 3850.00 IMIIIIEEM 37.683 1667.22 3001.49 2375.78 1835.08 1348301.79 2232773 03 4.00 -4.00 0.00_ Planned Wellpath Report VI Paxton #4 Vers. #2 BAKER MARATHON Page 4 of 6 HUGHES REFERENCE NN ELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #4 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #4 Field Ninilchik Field (NAD83) Wellbore Paxton #4 Facility Paxton ELLPATH DATA (94 stations = into I olated/extra i 1 fated station MD Inclination TVD North East Grid East 1 Grid North DLS Build Rate Turn Rate Comments ft ft Ifti (ft] Isry ft] I lsry ft] ° /100ft °/100ft 1° /100fti 1 4050.00 65.151 37.683 1738.34 3188.21 2523.57 1949.24 ', 1348419.52 I 2232918.00 { 4.00 -4.00 0.001 4146.90 61.275 37.683 3274.68 2592.02! 2002.10 1348474.03 2232985.141 4.00 -4.00 0.00 Beluga T1 - EoD 4150.00 61.275 37.683 1783.49 3277.40 2594.17 2003.77 1348475.75 2232987.25 0.00 0.00 0.00 4250.00 61.275 37.683 1831.55 3365.08 2663.57 2057.37 1348531.03 2233055.32 0.00 0.00 0.00 M ::: : : 4353.00 61.275 37.683 1881.05 3455.39 2735.06 2112.59 1348587.97 2233125.44 0.00 0.00 0.00 Begin Final Drp/Trn 4450.00 58.869 37.378 1929.44 3539.44 2801.72 2163.80 1348640.79 2233190.83 2.50 -2.48 - 0.31- 4550.00 56.390 37.04 1982.98 3623.89 2868.97 2214.87 1348693.49 2233256.82 2.50 -2.48 -0.33 IMMIIIIIIIIIIIIIII 4650.00 53.912 36.69. 2040.12 3705.94 2934.62 2264.11 1348744.31 2.50 MIIIINEgn -0.35 4850.00 48.958 35.923 2164.76 3862.27 3060.57 2356.71 1348839.95 2233444.90 2.50 -2.48 -0.4 4950.00 46.484 35.491 2232.03 3936.24 3120.64 2399.90 1348884.59 2233503.91 2.50 -2.47 -0.43 5050.00 44.011 35.023 2302.43 4007.23 3178.62 2440.89 1348926.98 2233560.87 2.50 - 2.47 - 0.47 5150.00 41.540 34.511 2375.83 4075.10 3234.40 2479.62 1348967.06 2233615.69 2.50 -2.47 -0.51 5312.34 37.535 33.563 2,31 + i 4178.31 2.50 -2.47 -0.61 r eluga T2 Horizon 5350.00 37.535 33.563 2530.86 4201.22 3339.12 2550.16 1349040.14 2233718.65 0.00 0.00 0.01 5450.00 37.535 33.563 2610.16 4262.06 3389.89 2583.85 1349075.05 2233768.58 0.00 0.00 0 . 00 I-_IIIIII 5550.00 37.535 33.563 2689.46 4322.90 3440.65 2617.53 1349109.96 2233818.52 0.00 0.00 0.00111111111111111111111111 5750.00 37.535 33.563 2848.06 4444.57 3542.19 2684.89 1349179.77 2233918.38 0.00 0.00 0.00- 5850.00 111111111M0 33.563 2927.36 4505.40 3592.95 2718.58 1349214.68 2233968.31 0.00 0.00 0.00 5950.00 IIIIIIIIME 33.563 3006.65 4566.24 3643.72 2752.26 1349249.59 2234018.24 0.00 0.00 0.00 6050.00 37.535 33.563 3085.95 4627.07 3694.49 2785.94 1349284.50 2234068.17 0.00 0.01 0.00 6250.00 37.535 33.563 3244.55 4748.75 3796.02 2853.31 1349354.32 2234168.03 0.00 0.01 0.0' 6350.00 ® 33.563 3323.85 4809.58 3846.79 2886.99 1349389.23 2234217.96 0.00 0.00 0.00 6450.00 37.535 33.563 3403.15 4870.42 3897.55 2920.67 1349424.14 2234267.89 0.00 0.00 0.00 6550.00 37.535 33.563 3482.45 4931.25 3948.32 2954.35 1349459.05 2234317.82 0.00 0.00 0.00 AA Planned Well Vers. p ath Report laki BAKER Paxton #4 V #2 E MARATHON Page 5 of 6 HUGHES REFERENCE WELLPAT _ T I H IDENTIFICATION Operator MARATHON Oil Company Slot slot #4 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #4 Field Ninilchik Field (NAD83) Wellbore Paxton #4 Facility Paxton _ _ ELLPATH DATA 94 stations = inter ' olated/extra I olated station MD Inclination Azimuth TVD North Grid East Grid North DLS Build Rate Turn Rate Comments ft ° ° ft ft sry ft sry ft ° /100ft ° /100ft ° /100ft 6750.00 IIIIIIIIIIIMEE 33.563 3641.04 5052.92 4049.85 3021.72 1349528.87 2234417.68 0.00 0.00 0.001111111111111' 6850.00 iimpim 33.563 3720.34 5113.76 4100.62 3055.40 1349563.78 2234467.61 0.00 0.00 0.00 6950.00 immizeg 33.563 3799.64 5174.59 4151.39 3089.08 1349598.69 2234517.54 0.00 0.00 0.001111111111111 6952.98 1111.1111E 33.563 3802.00 5176.41 4152.90 3090.09 1349599.73 2234519.03 0.00 0.00 0.00 TD HOLE & CASING SECTIONS Ref Wellbore: Paxton #4 Ref Wellpath: Paxton #4 Vers. #2 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 12.25in Open Hole 0.00 2500.00 2500.00 0.00 1419.24 0.00 0.00 1325.83 1024.09 9.625in Casing Surface 0.00 2500.00 2500.00 0.00 1419.24 0.00 0.00 1325.83 1024.09 8.5in Open Hole 2500.00 6952.98 4452.98 1419.24 NA 1325.83 1024.09 NA NA 4.5in Liner 2300.00 6952.97 4652.97 1383.91 3802.00 1170.04 903.75 4152.89 3090.08 • M Planned Well ath Report 11 R p BAKER Paxton #4 Vers. #2 E MARATHON Page 6 of 6 HUGHEs REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #4 aZaIIIIII Cook Inlet, Alaska (Kenai Penninsula) 152111111111111 Paxton #4 Field Ninilchik Field (NAD83) Wellbore Paxton #4 Paxton -- TARGETS --- _ _ -_.. _ Name MD TVD North East Grid East Grid North Latitude Longitude Shape [ft] [ft] [ft] [ft] [sry ft] [sry ft] 4146.90 1 1782.00 2592.02 2002.10 1348474.03 2232985.13 60 °06'09.949 "Ni 151 °35'59.743 "W circle 1) Paxton #4 Beluga B1 (NAD83) 12- Jan -10 2501.00 3341.88 2558.96 1349049.00 2233721.211' 233721.21 60 0 06'17.334 "N 151°35'48.756"W circle 2) Paxton #4 Beluga B2 (NAD83) 12-Jan-10 3802.00 4139.451 3102.941 1349612.251 2234505.281 60 °06'25.187 "N 151 °35'38.021 "W' circle Paxton #4 TD (NAD83) 12- Jan -10 SURVEY PROGRAM Ref Wellbore: Paxton #4 Ref Well 1 ath: Paxton #4 Vers. #2 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ft] 0.00 2500.00 aviTrak (Magcorrl) I' axton #4 2500.00 6952.98 • utoTrak G3 (Standard) I' axton #4 • Planned Wellpath Geographic Report mem Report Generated 1 11.111001"11, - , IMEEKEIMEMIIIII= Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator AIMIIIIIIIMMINE MARATHON Oil Company - - -- North Reference IMM- Area Cook Inlet, Alaska (Kenai Penninsula) -- Scale 0.999998 IMMII Ninilchik Field (NAD83) IIIIII= - Horizontal Reference Point Slot - Facility 111111111111t CEMM - -- Vertical Reference Point Glacier #1 (RKB) Slot IMINIMMIr slot #4 111MIIM - MD Reference Point Glacier #1 (RKB) Well glilliMIMM '.' Paxton #4 - - - -- Field Vertical Reference Mean Sea Level Wellbore - - - -- Glacier #1 (RKB) to Facility Vertical Datum EililEIM Wellpath MIMISSIMMISII Paxton #4 Vers. #2 - - -- Glacier #1 (RKB) to Mean Sea Level EEC= Wetlbore Last Rev 01/12/2010 - -- -- Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from a q 011:0MIMIMIll Section Origin X E 0.00 ft User 11.11.11111r MIE - - - -- Section Origin Y N 0.00 ft - Calculation method .,MMINIIIr EIMMIIIIMIII. Section Azimuth Eri2MMIIIIII MIII=MIIIIMEMION=11=101MIIMMIMIIIIIIIM Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] Slot Location - 2940.42 1346409.36 2230442.69 60 °05'44.423 "N 151°36'39.236'W Facility Reference Pf 60 °05'51.066 "N IIIIMEgli I Field Reference Pt 4 w ...==1111 2251649.81 60 °09'19.105 "N 151 °28'24.639'W * NAD 83 coordinates are converted to NAD 27 usin • Corpscon 6.0.1 (US Army Corps of En! ineers .1111MMIIIMIIMIIIIMMIIIMIIIMMIIIMIn from MD Inclination Azimuth TVD Fid Ref North East Grid East Grid North - .. DLS Toolface Build Rate Turn Rate Vert Sect. dragaitaaft, Comments [ft] [°] [°] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ft] [ft] [ " 1100ft] [°] [ " /100ft] [ ° /100ft] [ft] W 0.00 0.00 MOM 0.00 =LEEN 0.00 0.00 1346409.36 2230442.69 206389.9 2230683.798 0.00 0.00 0.00 0.00 0.00 100.00 0.00 MEM= 100.00 MIMI 0.00 0.00 1346409.36 . 2230442.69 206389.9 2230683.798 0.00 0.00 0.00 0.00 0.00 1.1111. I 160.00 0.00 MM. 160.00 MEM 0.00 0.00 1346409.36 2230442.69 206389.9 2230683.798 0.00 WHIM 0.00 0.00 0.00 200.00 MEM 37.68 199.99 28.99 0.55 MZEM 1346409.80 2230443.23 206390.34 2230684.338 5.00 0.00 5.00 0.00 Mnim 300.00 MOZINIIIIEYEZI 299.65 MEMIEMEM® r® 206395.28 2230690.428 MEM 0.00 MEM 0.00 400.00 MIECIMMEMIIIIMEEZEMEMEMMELEINNIEEIIIIMEMEMIEEELIMII 206405.691 2230703.236 ECM 0.00 MEM 0.00 IMEEMIIIII 500.00 MEM 37.68 mEzEimman. 39.63 NIElimi 1346440.92 2230481.56 MEMEEMI 2230722.665 5.00 0.00 MEM 0.00 50.06 600.00 mgammgimmagmong. 66.04 MUM 1346461.96 2230507.46 206442.503 NEE=ENEEEm 0.00 maw 0.00 MEXEMMIIIIIMIIII 700.00 MEEMMILM 680.23 509.23 98.84 MEE= 1346488.09 2230539.64 wrimms 2230780.739 MEM 0.00 =EN 0.00 800.00 INEICOMMEZMWEEENEEECIMEZEMMEMTNEEMEIE1 2230577.86 206499.676 BEEMESECIM 0.00 =CM 0.00 MiZEII 900.00 MEEMINEIEM 849.63 678.63 1.03ZIMMOMM 2230621.81 206535.368 2230862.901 MEM 0.00 MEM 0.00 1000.00 42.00 37.68 KEZEM 755.77 232.94 MM. 1346594.91 2230671.17 206575.461 2230912.257 MEM 0.00 M1EM 0.00 EMIEM 1100.00 =scum= 998.07®r 288.39 MM. 1346639.08 MIME. 206619.634 2230966.651 MEM 0.00 MEM 0.00 1200.00 MIEMMEEM 1062.99 891.99 mummEIEE. 1346687.00 MEIECTE 206667.557 2231025.646 MEM 0.00 MEM 0.00 '® 1300.00 r r maztm®' 950.05 412.96 MM. 1346738.30 2230847.75 i®: 't; r r 0.00 man. 0.00 MEM 1400.00 62.00 MiLMEMIREE 1000.78 IMEMMEIEM 1346792.60 2230914.62 WMENIMEMEMCEMZEM o.00 MEM 0.00 607.84 1500.00 67.00 IMEMEMIESEMI 1043.82 wEENE:EcE. 1346849.48 2230984.66 206830.047 2231225.717 MEM 0.00 5.00 0.00 698.06 1600.00 72.00 sigammom 1078.83 626.64 ®' 1346908.51 '® 206889.08 2231298.4 MEM 0.00 5.00 0.00 791.68 1700.00 MFLEMMEEMEMEMMUM. 702.88 MMEEM 1346969.24 ® 206949.814 ® r r 0.00 MEM 0.00 888.00 EMECEMEIBIE 37.68 1287.89 1116.89 746.68 MEREME=EI 2231175.08 206984.706 2231416.118 MEM 0.00 5.00 0.00 943.33 180o.00 wilmmEgammEmomegm 780.56 602.92 MEEMMEMEMEME 207011.698 WEEMS 0.00 0.00 0.00 0.00 986.14 1900.00 MEMMIEMMEBEEMIMMI 858.46 663.08 EgEmansumEm 2231525.758 0.00 0.00 0.00 0.00 EMEZI- 2000.00 MOM 37.68 1330.91 MEM 936.35 ®EEME4N 2231361.14 '® 2231602.161 0.00 0.00 0.00 0.00 1182.96 2100.00 WEEMWMIBEIBMICISEMEZEMEEMERIIIIEMIMMI 207197.849 IEMIM 0.00 0.00 0.00 0.00 2200.00 MEEEIMMMIIIIIEEMINEIEMMICEIGAIIIIMEIIMEEEKENEEMEEM 2231754.956 0.00 0.00 0.00 0.00 MEEral 2300.00 mg= 37.68 magman 1212.91 1.0=BWIME 1347341.36 ®' 207321.957 2231831.349 0.00 0.00 0.00 0.00 Room 2400.00 MEE11111111111EMEMEMMEEEFAMEM• 963.92 MEM= 2231666.76 MEMEIEMEEMEME 0.00 0.00 0.00 0.00 mom 2500.00 wrammumnimcgsmummEgign 1024.09 Ma=zuggsgmum 207446.054 2231984.154 0.00 0.00 0.00 0.00 MOMEM 2600.00 MEDDIMMEM 1436.90 1265.90 Nualin. 1084.26 ®' 207508.108 IllEa=11 0.00 0.00 0.00 0.00 2700.00 X* M 5 2231895.98 207570.162 MEE= 0.00 0.00 0.00 0.00 Enos 2800.00 MUM 37.68 MM. 1301.24 '® 1347651.60 2231972.39 207632.216 2232213.352 0.00 0.00 0.00 0.00 1970.25 2900.00 MEEMMIEM 1489.90 1318.90 latimmmusigmEmni 2232048.79 207694.27 2232289.745 0.00 0.00 0.00 0.00 2068.66 3000.00 MEEEMMYEEINEEMENNIEEMEN®MEEMENEBEISMEEE=11 '®EMEEMEN 0.00 0.00 0.00 0.00 2167.08 3100.00 MEEMIMMUM® 135423 ggEnamEmEmEramm 2232201.60 207818.368 MEMME. 0.00 0.00 0.00 0.00 2265.49 3200.00 MILMIIIMEMMEHEIMMEEMENNEEDIENNOZIMII 1347899.79 IIINEMEMMEMIMMOCEN 0.00 0.00 0.00 0.00 2363.90 3300.00 79.83 37.68 1560.57 1389.57 1949.00 1505.43 1347961.84 2232354.42 207942.475 2232595.345 0.00 0.00 0.00 0.00 2462.31 3400.00 IMXIMMMEMEEKEEMEBEM 2026.90 1565.60 1348023.89 IffigEMZE 208004.529 1113MINCE 0.00 0.00 0.00 0.00 3500.00 mgrEmEmis 1595.90 Z r r®' 1348085.93 EMMA 208066.573 MEM= 0.00 0.00 0.00 0.00 3600.00 MEM 37.68 Erma 1442.56 2182.69 1685.93 1348147.98 2232583.63 '® 2232824.533 0.00 0.00 0.00 0.00 EMI ammEgmemorgammogiguilmmigmmiggim 1348199.58 IIEZZERAMEMEM 2232888.067 0.00 - 180.00 0.00 0.00 Exam 3700.00 mEmmyLumgmEnmEnammEmm 1746.09 1348210.02 2232660.03 208190.671 2232900.926 MEM - 180.00 MUM 0.00 MEM 3800.00 ® 37.68 1482.56 ® 1805.68 NEEMOMI 2232735.69 208252.125 2232976.579 MEM - 180.00 -4.00 0.00 ®' t 3900.00 MICEININIELEMMEMEIEEMEMMIIIMINEMEMEEEEEE11 2232809.97 i® ' r r - 180.00 11111= 0.00 3049.07 Page 1 of 2 TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [°] [°] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ft] [ft] ['1100ft] ['] [`i100ft] [' /100ft] [It] 4000.00 67.15 37.68 1718.12 1547.12 2487.39 1921.29 1348390.69 2232882.50 208371.352 2233123.374 4.00 - 180.00 -4.00 0.00 3142.49 4100.00 63.15 37.68 1760.14 1589.14 2559.18 1976.74 1348447.88 2232952.93 208428.546 2233193.798 4.00 - 180.00 -4.00 0.00 3233.20 4146.90 61.28 37.68 1782.00 1611.00 2592.02 2002.10 1348474.03 2232985.14 208454.697 2233226.005 4.00 0.00 -4.00 0.00 3274.68 4200.00 61.28 37.68 1807.52 1636.52 2628.87 2030.57 1348503.39 2233021.28 208484.059 2233262.141 0.00 0.00 0.00 0.00 3321.24 4300.00 61.28 37.68 1855.58 1684.58 2698.27 2084.18 1348558.67 2233089.36 208539.343 2233330.214 0.00 0.00 0.00 0.00 3408.92 4353.00 61.28 37.68 1881.05 1710.05 2735.06 2112.59 ' 1348587.97 2233125.44 208568.644 2233366.291 0.00 - 173.81 0.00 0.00 3455.39 4400.00 60.11 37.54 1904.06 1733.06 2767.52 2137.60 1348613.76 2233157.28 208594.436 2233398.128 2.50 - 173.74 -2.48 - 0.31 3496.36 4500.00 57.63 37.21 1955.76 1784.76 2835.54 2189.56 1348667.37 2233224.01 208648.05 2233464.852 2.50 - 173.57 -2.48 -0.32 3581.95 4600.00 55.15 36.87 2011.10 1840.10 2902.01 2239.73 1348719.14 2233289.24 208699.823 2233530.075 2.50 - 173.38 -2.48 -0.34 3665.22 4700.00 52.67 36.51 2070.00 1899.00 2966.80 2288.02 1348768.99 2233352.83 208749.676 2233593.659 2.50 - 173.17 -2.48 -0.36 3746.03 4800.00 50.20 36.13 2132.34 1961.34 3029.79 2334.33 1348816.82 2233414.68 208797.509 2233655.503 2.50 - 172.93 -2.48 -0.39 3824.21 4900.00 47.72 35.71 2198.00 2027.00 3090.86 2378.57 1348862.55 2233474.65 208843.242 2233715.468 2.50 - 172.66 -2.48 -0.42 3899.62 5000.00 45.25 35.26 2266.85 2095.85 3149.90 2420.67 1348906.07 2233532.65 208886.765 2233773.462 2.50 - 172.35 -2.47 -0.45 3972.12 5100.00 42.78 34.77 2338.76 2167.76 3206.79 2460.54 1348947.32 2233588.55 208928.018 2233829.357 2.50 - 171.99 -2.47 -0.49 4041.56 5200.00 40.31 34.24 2413.61 2242.61 3261.43 2498.11 1348986.21 2233642.26 208966.911 2233883.062 2.50 - 171.59 -2.47 -0.54 4107.83 5300.00 37.84 33.64 2491.23 2320.23 3313.72 2533.31 1349022.66 2233693.67 209003.364 2233934.468 2.50 - 171.13 -2.47 -0.59 4170.78 5312.34 37.54 33.56 2501.00 2330.00 3320.00 2537.48 1349026.99 2233699.85 209007.694 2233940.647 2.50 0.00 -2.46 _ -0.63 4178.31 5400.00 37.54 33.56 2570.51 2399.51 3364.50 2567.01 1349057.59 2233743.62 209038.296 2233984.413 0.00 0.00 0.00 0.00 4231.64 5500.00 37.54 33.56 2649.81 2478.81 3415.27 2600.69 1349092.50 2233793.55 209073.209 2234034.339 0.00 0.00 0.00 0.00 4292.48 5600.00 37.54 33.56 2729.11 2558.11 3466.04 2634.37 1349127.41 2233843.48 209108.121 2234084.265 0.00 0.00 0.00 0.00 4353.31 • 5700.00 37.54 33.56 2808.41 2637.41 3516.80 2668.05 1349162.32 2233893.41 209143.034 2234134.19 0.00 0.00 0.00 0.00 4414.15 5800.00 37.54 33.56 2887.71 2716.71 3567.57 2701.74 1 1349197.23 2233943.34 209177.946 2234184.116 0.00 0.00 0.00 0.00 4474.98 5900.00 37.54 33.56 2967.01 2796.01 3618.34 2735.42 1349232.14 2233993.27 209212.859 2234234.041 0.00 0.00 0.00 0.00 4535.82 6000.00 37.54 33.56 3046.30 2875.30 3669.10 2769.10 1349267.05 2234043.20 209247.772 2234283.967 0.00 0.00 0.00 0.00 4596.66 6100.00 37.54 33.56 3125.60 2954.60 3719.87 2802.78 I 1349301.96 2234093.13 209282.684 2234333.892 0.00 0.00 0.00 0.00 4657.49 6200.00 37.54 33.56 3204.90 3033.90 3770.64 2836.46 1349336.87 2234143.06 209317.597 2234383.818 0.00 0.00 0.00 0.00 4718.33 6300.00 37.54 33.56 3284.20 3113.20 3821.40 2870.15 1349371.78 2234192.99 209352.509 2234433.743 0.00 0.00 0.00 0.00 4779.16 6400.00 37.54 33.56 3363.50 3192.50 3872.17 2903.83 1349406.69 2234242.92 209387.422 2234483.669 0.00 0.00 0.00 0.00 4840.00 6500.00 37.54 33.56 3442.80 3271.80 3922.94 2937.51 1349441.60 2234292.85 209422.334 2234533.594 0.00 0.00 0.00 0.00 4900.83 6600.00 37.54 33.56 3522.09 3351.09 3973.70 2971.19 1349476.51 2234342.79 209457.247 2234583.53 0.00 0.00 0.00 0.00 4961.67 6700.00 37.54 33.56 3601.39 3430.39 4024.47 3004.88 1349511.41 2234392.72 209492.15 2234633.455 0.00 0.00 0.00 0.00 5022.51 6800.00 37.54 33.56 3680.69 3509.69 4075.24 3038.56 1349546.32 2234442.65 209527.062 2234683.381 0.00 0.00 0.00 0.00 5083.34 6900.00 37.54 33.56 3759.99 3588.99 4126.00 3072.24 1349581.23 2234492.58 209561.975 2234733.307 0.00 0.00 0.00 0.00 5144.18 6952.98 37.54 33.56 3802.00 3631.00 4152.90 3090.09 1349599.73 2234519.03 209580.476 2234759.754 0.00 0.00 0.00 0.00 5176.41 40 Page 2 of 2 All . . MARATHON Oil Company �� Location: Cook Inlet, Alaska (Kenai Penninsula) Sot: slot #4 BAKER g t� Yin Field: Ninilchik Field (NAD83) Wen: Paxton #4 HUGHES MARATHON Facility: Paxton Macre: Paxton 44 Plot reference wellpath is Paxton #4 Vers. #2 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: 171 feet Scale: True distance Mean Sea Level to Mud line (Facility: Paxton): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 4/12/2010 Scala t mil =O ft Easting (ft) W -300 0 300 600 900 1200 1500 1800 2100 2400 2700 3000 3300 3600 4500 1 1 1 1 1 1 1 I 1 1 1 1 1 1 �� o� 4 4 Vi a : 4200 ■ — 4200 Paxton #4 TD (NAD83) 12 Jan - 70 TD 1/2" Liner 3900 — ■ 3900 3600 — ■ 3600 3300 - Paxton #4 Beluga B2 (NAD83) 12 .Jan - 11 : eluga T2 Horizon — 3300 3000 — — 3000 2700 — Begin Final Drp/Tm — 2700 Paxton u4 Beluga B1 (NAD83) 12 - Jan 1 - . uga T1 - EoD 2400 ■ ■ 2400 F z Begin Angle Drop 0 c s r 2100 — ■ 2100 1 Q O Z 1800 — — 1800 1500 — — 1500 9 5/8" Csg Surface fr 1200 — — 1200 900 ■ — 900 End of Build 600 ■ ■ 600 300 — — 300 0— KOP, slOt — 0 RKB - 171' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 -300 0 300 600 900 1200 1500 1800 2100 2400 2700 3000 3300 3600 Scala 1 Inch =SOOfl Easting (ft) M MARATHON Oil Company FARO L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #4 BAKER MARATHON Field: Ninilchik Field (NAD83) Well: Paxton #4 HUGHES Facility: Paxton Wellbore: Paxton #4 Plot reference wellpath is Paxton #4 Vers. #2 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: 171 feet Scale: True distance Mean Sea Level to Mud line (Facility: Paxton): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 4/12/2010 -450 — MI • 0 — ,. RKB - 171' KOP 7.00° 0 450 — 22.00° 0 5.00 ° /100ft 900 - 37.00° ° 52.00° c 67.00' = End of Build .-. 1350 — 9 5/8" Csg Surface L N Begin Angle Drop .. 79.82° O ; 67.15° • 1800 — 4.00 ° / B 1 el 0 uga Ti - Eo0 Paxton #4 Beuga B1 (NAD83) 12 Jan - 10 rt 61.28 Begin Final Drp/Tm 53.66° • m 2.50 ° /100ft 2 2250 — 45.74° ° • Beluga 72 Horizon 38.33° 0 Paxton #4 Beluga B2 (NAD83) 12 Jan - 10 2700 — 3150 — 3600 — TD 4 1/2" Liner - Paxton #4 TD (NAD83) 12 Jan - 10 ,e — t 6 4050 , 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 - 450 0 450 900 1350 1800 2250 2700 3150 3600 4050 4500 4950 5400 5850 Vertical Section (ft) Scale 1inch =goo Azimuth 36.65° with reference 0.00 N, 0.00 E • Mi - : : , 11 1 1j !1 1 : i fill 'LLING FLUIDS P ( Well: :....,:„„i,„ ,..: :,,,_ „: :::, .,::::„:„„::: ,,,,,„::,:,...:: _,._,, .,,..::,::. .„,„„,„,!„,:„„m„:„.„:,: _ ,,:, :::::„,:: .,„,,„,::,::::::: _,-: :.:::_,, _ ::,:,:::::::..:.,.„„:::,::_ .,„ .. _ „1„,1,i,,„,!:::,::.:.: , __:,:„,„„„:„:„,::,:": ,_ _: ,.:„.,.„„,:„„,„:::: .:,„„,:„ „„: x n Pa to 4 # - - Prepared b : Jim Dwyer � �� P Y - Senior Pro ect En m eer M-I SWACO J g Reviewed b Dallas Rhodes / Rick Morris �'i� Y MISWACO ,� land Lawson / Tank Presented to: Row I':::1111.11111111,1111:1:111:11:: �II'il� . i • Drilling Engineer Marathon �, g g � - • 1 Marathon Oil Company PO Box 190168 = -- Anchorage, Alaska 99519 - _ ATTN. Rowland Lawson /Will Tank i,� - Rowland /Will: Enclosed is the drilling fluid f ed e d u d for the Paxton 0 4 well. The following e o lowin is a b ,' i of g i, s a s s II g of the yp P program. Overview: Paxton #4 is an exploration well targeting Tyonek formations in the Ninilchik area, A Gerelex spud mud is recommended for the surface interval. Flo -Pro fluid will be used for -the r ote edlnte and production intervals. After logging the production interval, the well will be co mpleted with 4 1/2" liner cemented in place. Surface Interval: A standard fresh water Gel /Gelex spud mud will be used. Initial funnel viscosity, should b e in the O — 75 sec /qt range. Lower funnel viscosity to 45 — 60 sec /qt after gravel has been 'drilledLower fluid loss to < 10 cc's API prior to running surface casing. Any fluid losses to the formation may be' controlled by additions of G -Seal and/or sized calcium carbonate. G -Seal can also atedUee torque in the build area of the surface hole. Production Interval: 0 This interval will be drilled with 3% KCL Flo -Pro fluid. After drilling out the surfac a 20 n 4�. — 25 feet of new hole, the well will be displaced to a new Flo -Pro KC1 fluid. Fluid ernent toss should be maintained @ < 6 cc's API for this interval. Potential coal sloughing may require the addition of Resinex and / or Asphasol Supreme supplemented with GSeal. Completion: This ro ram assumes the well will be completed with 3% KC1 brine. P g P Jim Dwyer Project Engineer /M -I SWACO Reference Wells: Susan Dionne 3, Paxton 1 ro ram is provided as a mde only. Well conditions will alwa P � P g V s dictate fluid ro t't1 th I q r ��' NOTE: This li V p P G 1 e d. ! • MI SWACO Section 1 Objectives / Benchmarks 1 Goals Goal / Objective Achieve Health, Safety and Environmental Goals Benchmark No Accidents, No harm to people, No damage to environment Performance Days away from work, medical treatments, fluids discharge, spills Measure Goal / Objective No NPT on well Benchmark No NPT due to mud properties out of specification. Performance Daily review of mud properties with mud engineer and project Measure engineer Goal / Objective Minimal losses to formation Benchmark Control and /or minimize seepage losses in underpressured sands. Performance Verify losses per hole section on well with OneTrax Measure Goal / Objective No NPT on well Benchmark No hole cleaning issues upon following the program and /or rig site mud engineers recommendations. Performance Monitor NPT on daily Marathon reports Measure • • Mg SWACO Section 2 — Well Design Paxton 4 Casing Hole Casing Depth TVD Mud Mud Weight Cost , ,,< Size Size Program (MD -SS) (TVD -SS) System (ppg) f ',, , (in) (in) (ft) (ft) Conductor 171' 2500 1424 GEL SPUD 8.8 — 9.4 $26,438 6 9.625" 12.25" 4.5" 8.5" 6952 3802 FLOPRO 8.9 — 9.5 $157,840 10 Liner 3% KCL 3% KCL Brine 8.6 $15,273 3 Comp Cost does include engineering charges 40, • • MI Section 3 — Challenges/Potential Problems - Discussion / Recommendations - COMMUNICATION — The Field Mud Engineer will communicate daily with the In iIi T o w Pr II Engineer. The Project Engineer will then communicate daily with the rig Drilling E ngineer Communications should be about, but not limited to, fluid prope dlf rties, hole ficultres, po$S ble changes to the mud program, and proposals to use products not included in the mud progrin WHOLE MUD LOSSES TO THE FORMATION — Refer to loss circultation formulas fob m proper bridging material concentrat in the mud system whil,,, dulling the'' +I production interval. FLUID LOSS CONTROL — In the production interval the API fluid will be main in d in the 5 '� + additions, ma -r d =_ a A' cc's at all times. In addition to s ufficient fluid loss agent ad a -- �i � � ., dilution of the mud system in order to keep reactive drill solids to a mini mum. 'ire a ua , . ' LSRV — When drilling with a FloPro fluid, the low shear rate rheology should b + ,ii; aroun 30 — 40,000 cps. In addition to adequate additions of FloVis Plus, thiswill" also require 1 keep reactive drill solids to a minimum in order to reduce or eliminate faIS an - urlltted high LSRV. DRILL SOLIDS — MBT — The MBT should be kept at Tess 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 syste sho lll m ade as pre - mix additions. Polymers and KCI should first be mi m e xed in fresh water in that l"der a then blended into the active system over one or two circulations as needed CORROSION — Conqor 404 additions should be made daily when drillin ��kiVi q th FloFro fluid in n order to maintain a Conqor 404 concentration of +/- 2000 PPM. g' _ CORROSION - Sodium Meta Bisulfate additions should be made daily as needed with any fll� in the hole. Maintain a DO reading of less than 3 ppm MYACIDE 25G ADDITIONS — Myacide 25G additions should be made daily,, !n drilling in'the production interval, in the range of 5 gallons per day. WEIGHTING UP — All increases in mud weight should be accomplished withbarite a I t n the production interval. KCL CONCENTRATION — 3% KCL will be used both in the FloPro drilling, fluids ane#, inn the completion brine formula. Previous wells and fluid testing have shown th1S _to be y'then sufficient for clay inhibition vs. old 6% KCL formulation. m Q e, „ i i i _ _ • i Section 3 - Challenges/Potential Problems Hole Cleaning Recommendations ❑ Low -shear rate viscosity LSRV" values (6 and 3 rpm) has a greater impact on hole cdeanin than yield point, in addition to providing barite suspension under dynamic as wteH,as st atic conditions. Optimize rheology to increase hole cleaning efficiency of fluid (Aciju`stment o_f Yi Point and 6 rpm readings). ❑ Rheology and Hydraulics calculations will be run daily and the mud properties w ill be ad jus te d � needed to maximize hole cleaning. 1. ❑ Use the highest possible annular velocity to maintain good hole cleaning. Annular velocity provides the upward impact force necessary for good cuttings transport. 1=1 Control drill to manage difficult hole cleaning situations. Penetration rates determine: the ann ula r cuttings load. Use the PWD data (if available) to determine when it is necessary to stp drilling and circulate the hole. ❑ Keep cuttings concentration less than 5% (by volume) in order to minimize drliflg pruble . ''' ❑ Sweep Recommendations: �„�� n1 - � ❑ Don't recommend the use of sweeps unless hole conditions dictate the n e l essit » �'' ❑ Hi- Vis sweeps are recommended to use if needed. The volume should b� � !! ' noti, §h to c ove r at least 200 -300 annular volume of the open hole. The recommended rheology of he sweep would have the Yield Point in the 35 -40 range and the 6 RPM readings in the 15 2- range. ❑ Weighted sweeps are another option, but Hi -Vis sweeps are preferred. ❑ The need to pump LCM sweeps will be dictated by hole conditions. Bit/BHA Balling Recommendations �� ❑ T he reactive cla formations can absorb hi h volumes of water and can be r. mel ic I problematic regardless of the degree of inhibition. ❑ The drilling rate should be controlled to keep the concentration of cuttings in the annulus bel 5 %. ❑ Short trips should be made as necessary to minimize buildup of cuttings in areas of ho t �� washout. ❑ During trips, the BHA can accumulate cuttings that will potentially ball it. Recommen circ for a short period to circulate up any formation that may have adhered to the B. HA o bit thing the trip. - • • Mi 02 *- Secti 4 — Lessons Learned & Offset Mud Data Offset well #1: Susan Dionne 3 Depth of Mud Wt. TVD Description of Information concerning the Event or Problem Event / (ppg) (Feet) Event / Problem Problem 1875 9.1 Tri for motor 3100 9.3 - Build new mud 4190 9.55 MEOMEMMM Drillin. ahead with lots of cla 4756 9.5 =Inn= Hit bride. Dum. and dilute mud to reduce solids 5245 9.8 3434' . - . . .. - , . -. .. • • .8, . " . .' Offset well #2: Paxton 1 Depth of Mud Wt. TVD Description of Information concerning the Event or Problem Event / (ppg) (Feet) Event / Problem Problem 561 8.8 561 Stuck pipe Loose boulder stuck pipe at 200'. 3117 9.2 2100 Tight hole Tight hole on wiper trip (x,2673' 6116 9.7 3405 Tight Hole Pump out of hole from 4590 - 4179 • • mi SVYAC.O. Section 5 — Surface Interval (0' — 2500') Depth Interval 2500' MD (1424' TVD) (12.25" OH, 9 5/8" Casing) Drilling Fluid System Spud Mud Key Products MI GEL, Gelex, Caustic Solids Control Mongoose shakers, desilter, centrifuge Potential Problems Hole Cleaning, Hole Stability INTERVAL MUD PROPERTIES iV Ji 2500 8.8 — 9.4 15 -24 >30 <18 60 - 100 8.0 — 9.0 < 6 D Treat drill water with Soda Ash to reduce hardness. D Build spud mud with 20 — 25 PPB M -1 Gel to +/- 100 sec.qt funnel viscosity. D Lower funnel viscosity to +/- 60 after gravel zone has been drilled. D Add Gelex as needed to maintain sufficient viscosity for hole cleaning. D Increase funnel viscosity if fill on connections begins to occur. D Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. D Add 2 — 5 PPB of MIX II to mud system if seepage losses become a problem. D Condition mud prior to cementing casing to reduce yield point and gel strengths. • • Mg SWACO Hydraulics / Hole Cleaning: , rr Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 2500' casing shoe and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT L ®18952010 M-I LLC. MD: 2500 ft Operator. Marathon rrxas9LLC. TVD: 1424 ft Well Nems: Paxton 4 VIRTUAL HYDRAULICS* SnapShot0 Bit Size: 1225 n Location: KanaY Peninsula Date: 4/1612010 Country: Alaska m ' DeCI Geometryy A le Density Va Hole Clean Pressure Distribution (1 MD/1VD Csg OD /ID ( 7° (IWgal) (ft/mIn) Index (e /. ) (p (m) 0 45 90 92 9B 10.0 10A 0 200 400 1G G F P Bit = 17.3 Ann = 3.7 DS = 79 ., 2:0111111_ _EN ' ' '‘O - :L NI . , 1]1 1 8625 400 ■I ■ 41, v EWE , � y' 5� ■,� Drilling Fluid g Water - Based Mud 800 • Mud We 9. Ib/ al Test Temp 120 °F System Dafa t00 I S 1 Flow Rate 700 gal /min ■ • 1001 Penetration Rate 100 ft/hr Rory pee 1 rpm Ibf milli! Weitaght S on Bd it 00 15 ^OOO 11111 Bit Nozzles 1.5 - j Pressure Losses — I■ — t Pressure L i m p . , P sl 11E1111 Molor 350 psi 11111 B l 191 per zaao S E9uiP Psi ut 1 1111 l4TUbe Effect 13 psi 2400, ! _ T System 2077 Psi 2500 — 12250 I 1 951 ECD 9 C 1224 Csg Shoe 9.51 9.63 9.81 2600, EE 1 _ TD 9.52 10.08 10.25 I E50 ffi NC . s ss 1 _ ECG e° I tom_. F✓ 7 Prn.r�e C_ :.^;6` ^fr 4� 1 ae.vaw>:usvam�anoe �ll,lll _ I F \\ - Y II X11 t � iP Gdi -4-. � . t )-0,p r s I -5 171 I Mg SWACQ r 1 � a 2 ta k mt 40:-:,.01.p'. #7§ „ , il 4 , 4 VH HOLE CLEANING k Mt S WACt� ©1995- 2010M- ILL.C. MD: 2500 ft Operator: Marathon V •wearMa_Lc ND: 1424 ft Well Name Paxton4 VIRTU u�DDAII I L 'A l� Y\7 *'1DD�* Bit Sze: 1225 in Location: Kenai Pe ninsula �l I� �WY .n naln 4f14D010 Country: AlaRka Hole Cleaning Marathon Paxton 4 — _.._ . '-._, - ROP 25 ft /hr �,` -- ROP 50 ftlhr h `` — ROP 75 ft /M ".: Poor Hole Cleaning ROP 100 ft /hr: '�.._,_ ROP 125 ftthr . 0.75 — x l e ca C Fair Hole Cleaning __,_�"''^- --_____ s. C d U _...._._.„ .___ d -_ i..._ __ Good Hole Cleaning 2 -- — _________ Very Good Hole Cleaning 400 500 600 700 800 Flow Rate (gal /min) 3 • • Section 5 — Production Interval (2500 - 6952') Depth Interval 6952' MD (3802' TVD) (8.5" OH, 4.5" Casing) Drilling Fluid System FLOPRO with 3% KCL Flo -Vis / PolyPac UL / KCI / SafeCarb F & M / Asphasol Supreme / Key Products LoTorq / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / Klagard Solids Control Mongoose shakers, desilter, centrifuge Potential Problems Hole Cleaning, Hole Stability, Seepage losses INTERVAL MUD PROPERTIES a R..4)., 1 1 1 :i3 } 6952 9 -9.5 10 -16 12 -18 5 -7 30 -40000 9 -9.5 <6 Use one rig pit for drilling out surface casing. In other rig pits, build new Flo -Pro fluid. y NOTE: LoTorq additions at 3% minimum will be made after mud is sheared down so no losses over shakers. y If running coals become a problem, treat with a 2 -4 PPB addition of Asphasol Supreme and 2 ppb G Seal. Periodic additions of LoTorq will be needed to maintain 3% minimal concentration. ➢ Condition mud prior to running 4 -1/2" casing. • • Mi SWACO Hy / Hol e Cl e a n ing: V i r tual Hy d ra u li cs Gr aphs The following graphs look at the ECD +cutt at 695 an d moving cuttings concen (MCC) in the annulus while drilling the section. VH SNAPS nl�� ®1995 - 2010 M -ILLA. MD: 6952 01 Opera Po Marathon •M.n wM4 EEC . TVD: 3802 ft WeIlName nton4 VIRTUAL HYDRAUL "Snapshot; B6 Sae 8 01 well Nr n : Kenai Pen i nsu l a Data 41152010 Cmmtry• AIR' Mt Depth Geonetry Angie De nst y Va H: Pressure D stHlutbn (ft) MDlND Cs ODtD ( °) (Ib a� ( fthril) ktdez (56) 0 m) 7n, 0 45 >A &8 10 112 12 0 0 3]0 600 VG G F P Mt Ann =30 DS =40 I ( 1610 U II FLOPR 5 n Test 111 .I Mud Weight 9 Terrp Data 120 °F am E 1157 System El ma s ' .,' ■ill ■ Flew Rate 450 gakmin ` 3000 111111111 .■ Penetrao Re 80 ftthr E 3000 Rotary Sti peed at 100 rpm ■"■ 1Weight on BB n 10 t00016f { B k N bs 1313- 13 -13-11 11ii1 ■ 13- 0-0 -0 -0 P res s ure Loss Mod'rf Law 1111 . String 400 ps MWD 350 p 5m0 ._.._ �__ 11111 ■ Bi[ 296 p si m00 11111 1 '11 1 Bit fore Q P 100 Ps A nnulus 300 ps Surface E ui 23 s 7 111 1 I. ■ . Total Effe 1 ct 21 ps 6500 o Total System 739 psi . 11 i ESD ECD +Cut r000 r 2 � , 6� �� Csg 911°' 9 10 it 380 � _ TD 9.64 11 E SD F � VaeH 32 Fam E CD LLS)P320 4.MOB ]5W 1111 rrHt•14 tc :tract• ��: File VHW q A _ K p d 3 • • M� SWACO VH HOLE CLEANING �H / Q�:� ®1995 -2010 M ILL.C. MD: 6982 ft Operator Marathon • Mrk MIL LC TVD: 3902 ft Wet:Nanr: Paxton4 VIRTUAL HYDIIAULICS'YRDH* BA Sae a5 Loeat »n: Kenai Peninsua nate 4/150010 Country Alaska Hole Cleaning 1 . 00 Marathon Paxton 4 ,. -, -... `: a ROP 120 ft/hr G ` x Poor Hole Cleaning ROP 160 3c 0.75 X Pair Hole Cleaning m 0 50 ...._.._.. __..... ._._ ._._... ...... _ d U Good Hole Cleaning 0.25 .-- -:-.- •......... —. .._._.._.__._.____._._...___._.__... ._..._._.___.._..._.- ........._ __.___w.._ _.._,...___. ____._..._._._v.._._..„., __....... - -_.. ___._�.::�: Very Good. Hole Cleaning : 200 300 400 500 600 Flow Rate (gal /min) i I • • Section 6 -- Solids Control Equipment Solids Removal Equipment Recommendations: The recommended SRE for this well are: Mongoose Shakers and Swaco Centrifuge. Recommended shaker screens sizes are as follows: Interval Recommended Screen Sizes Recommended Screen Sizes (Shaker 1) (Shat *er. 2) 0 — 2500' (Surface) 165 — 200 mesh 165 — 200 mesh 2500 — 6952' (Production) 200 — 230 mesh 200 — 230 mesh Completion 230 — 275 mesh 230 — 275 mesh Section 7— Summary of Cost and Product Usage 12.25 in Hole Sections (2500 ft.) Product Unit Size Units Required Total Est.Cost M -I Gel 50 # Sx. 582 Caustic Soda 50 # Sx. 10 Gelex 2# Sx. 16 Polypac Supreme 50# Sx 30 LoTorq Gallons 1000 CF Desco 25# Sx. 20 Soda Ash 50# Sx 18 Total Estimated Product Cost $21,438 8.5 in Hole Section (2500 ft. - 6952 ft.) Product Unit Size ; Units Required Total Est.Cost M -I WATE 50 # Sx. 276 Asphasol Supreme 50 # Sx. 36 SafeCarb 50 # Sx. 250 Soda Ash 50 # Sx. 9 Caustic 50 # Sx. 20 PolyPac UL 50 # Sx. 74 FloVis 50 # Sx. 130 Sodium Metabisulfite 50 # Sx. 36 Myacide 5 gal 20 Defoam X 5 gal 20 Conqor 404 55 gal 8 KlaGard 55 gal 20 SteelLube 55 gal 6 LoTorq gallon 2200 KCL 50# Sx. 500 Bicarb 50# Sx. 20 Total Estimated Product Cost $147,840 , Section 8 -- S��t�tx>ar of �'i �du�t cyst and Engineering for P10, PS , II C� , � 0 i Drilling Fluid Related Costs Estimated u d e 9 Engineering 9 9 Depth Interval Costs Interval Cumulative (ft) Product Costs ($) Days Cost Cost ($) ($) ($) Surface $21,438 $6,000 6 $27,438 $2�� "' 1 17 7 I,.1:, Production 147 840 10 000 10 5 84 0 18� 2 $ $147,840 $ � $ � te. $ I I Completion $12,273 $3,000 3 $15 273 , $2OQW$ I $ P10 P50 P ' IOI' 1 r' Total Estimated Product and Engineering Cost $150,413 19 $200,551 $ 350,91' } P10: Utilizing used fluids with no hole or other problems mechanical robl m tilizin n w fl id with n significant hole or problems P50: U e fluids no 1� 9 9 p �I" P90: Utilizing new fluids with significant hole or mechanical problems, excessive lost circulation or change of scope i - i - I i • • ivh - i 1 Circulation Recommendations ��, Lost - -- I Lost Circulation / Seepage Action plan: p ❑ Have sufficient sized LCM on rig to begin interval. ❑ Recommend hourly addition of LCM to keep a concentration in the system at all times. The dit�on of Calcium Carbonate (M, C), MIX II (cellulosic fiber), G -Seal (graphite) and Diamond Seal (coarse grdund graphite) can be adjusted as needed to combat losses. ❑ The particle size of the LCM is important. If the expected loss zone particulars are knewn,lhLii pion to have LCM to offer a particle size distribution so the majority of the LCM has a D50 to Cover 11'3 tF expected pore throat size and a D90 of cover the pore throat size. The D90 material Shot mak 1 1p 1 0 % d of the total LCM ppb pumped. "''^ - ❑ Coordinate size and amount of LCM sweeps with MWD personnel on rig. i ❑ The majority of losses can happen when running casing, circulating to cement and while ementing. - The use of Virtual Hydraulics surge calculations is recommended to establish safe casing r-tary ',png speeds. The use of open -float and bypass tools should be considered to help minimize surge pressure to formation. I II . I II. I = I � _ I II I - Appendix 1 — Lost Circulation Recommendations The following proactive lost circulation decision tree can be modified to include any contingencies that Marathon requires. The flowchart allows for planning of lost circulation material needs. No LCM Restrictions x "k Losing fluid while drilling I Measure rate of loss 1 1 Seepage losses Partial losses Severe losses 5 - 20 bbl /hr 20 -60 bbl /hr 60 — 200 bbl /hr or Total loss of returns • If fault related drill across fault If fault related drill across fault If fault related drill across fault 1 -1.5 times the length of the 1 -1.5 times the length of the 1 -1.5 times the length of the throw before treating losses throw before treating losses throw before treating losses 1 1 Spot 45 ppb pill *: Spot 80 ppb pill: Contact Drilling / G -SEAL Plus 10 ppb No success G -SEAL 15 ppb — No success L., Asset Engineer 1V1-1 -X II M 15 ppb M -I -X II C 20 ppb for approval SAFE GARB 40 10 ppb M -I SEAL M 10 ppb NUTPLUG F 5 ppb NUTPLUG 250 15 ppb PP NUTPLUG G F ] 0 ppb Magma Fiber 5 ppb Magma Fiber 10 ppb thru BHA Spot 100 ppb pill Pump Circ sub required Circ sub required G -SEAL 15 ppb M -I -X II C 20 ppb SAFECARB 40 20 ppb SAFECARB 250 25 ppb NUTPLUG F 10 ppb Magma Fiber 10 ppb Squeeze high- fluid -loss pill *: FORM - SQUEEZE 80 ppb (2sx/bbl) in water Weighted up to desired density Pump thru BHA * The particle size of these products is smaller than Nut Plug M Spot plug: Gunk Squeeze or FORM -A -SET AK �a ' r . L • ! Mg SWACO LCM Restrictions Losing fluid while drilling _ Measure rate of loss 1 : 1 • i \ , Seepage losses Partial losses Severe losses 5 20 bbl/hr 20 60 bbl /hr 60 200 bbl/hr or Total loss of returns Ir 1 • If fault related drill across fault If fault related drill across fault If fault related drill across fault 1 -1.5 times the length of the 1 -1.5 times the length of the 1 -1.5 times the length of the throw before treating losses throw before treating losses throw before treating losses T • Spot 50 ppb pill *: Spot 80 ppb pill No ( ontact Drilling i :issct success Circ sub required 0 Engineer for approval SAFECARB 40 20 ppb N SAFECARB 250 10 ppb sacccs> SAFECARB 40 10 ppb SAFECARB 500 15 ppb SAFECARB 250 15 ppb Magma Fiber Reg 5 ppb SAFECARB 500 30 ppb SAFECARB 1000 15 ppb Spot 80 ppb pill Pump thru BHA ` Magma Fiber Reg 10 ppb Circ sub required G -SEAL 15 ppb No success M -1 -X II C 20 ppb No success M -I SEAL M 10 ppb + SAFECARB 250 15 ppb NUTPLUG F 10 ppb Contact Drilling / Asset I Magma Fiber Reg 10 ppb Engineer for approval • Spot 80 ppb pill • Circ sub required Squeeze high- fluid -loss pill: G -SEAL 15 ppb I No success UEEZE M -1 -X 1I C 20 ppb • FORM-A-SQUEEZE SEAL M 10 ppb 80 ppb (2 sx/bbls) in water SAFECARB 250 15 ppb Weighted up to NUTPLUG F 10 ppb desired density Magma Fiber Reg 10 ppb Pump thru BHA I I * The particle size is smaller than Nut Plug Medium Spot plug. Gunk Squeeze or FORM -A -SET AK 1'; • • II Appendix 2 — Minimum Time to Circulate Prior To POOH FP - This model simply required p y p redicts the minimum flow rate equ ed for adequate cuttings i rans � ' �� % t: No predictions are available for the rate at which cuttings are removed. Because t he ou ' s move II �� g more slowly than the circulating mud, it is essential that sufficient bottoms -up are circulated p tq tripping. A SINGLE BOTTOMS -UP IS NEVER ENOUGH! _ „I The minimum on bottom circulation time prior to tripping will be influenced by hole s in , and flow history (i.e. mud properties and flow rate). These factors will affect the hei ht'. any - II residual cuttings beds. Recent work by Exxon has indicated that the volume of I 'tting "' e tir. ft behind during normal drilling operations can be considerable. They recommend selection of bits/BHA _ with 1 11'' large by areas to facilitate tripping out of the hole. Illll i Before tripping, m the shakers to ensure the cuttings return rate is reduced loan aCceptabie I background level. The figures in the table below are guidelines based on si slip velocity l,li considerations and field experience: II 'I„� T III 1'100 -. I u'p WELL INCLINATION SECTION LENGTH FACTOR RANGE 17 -1/2 inch HOLE 12 -1/4 inch HOLE 8 -1/2 in H 1 00 - 10° 1.5 1.3 .3 10 - 30 1.7 1.4 1.4 30 - 60 2.5 1.8 - 1.6 _ I ' 60 + 3.0 2.0 1.7 4 1' Procedure 1. Effective length Section length x section length factor. g g g o I'llll Effective Le — x B 2. Circulation time - e /U Measured depth at Bit I ,I 1 �I _ I, " Example P practice not all of the section back to surface will be deviated at the same angle, theove r�imu P 9 � � ' I Since in circulation time prior to tripping should be apportioned in direct relation to the relative length of sectict at I ', each angle. - -- - I - I I� I I i ICI II - I I - I �I I _ ,I �I I I - I I� I I • • ti !!.1,1h11111 :.111111b1101111101111;1!:11,h:: INU Appendix 3 — HSE Issues e Safety Recommendations for Mud System 1. The rig crew should be briefed on the makeup of the drilling fluid and its cosh', � fety and care should be used when drilling with any drilling fluid. An M -I Engineer will brief rit, cre of out drilling fluid and basic safety procedures. 2. MINIMIZE contact with the drilling fluid; although it's non - toxic, it can irritate sift. -_ 3. Wear personal protective equipment when you must work with the mud. IIII Froer equipment includes: a. Safety glasses or goggles ?!, b. Hard hat c. Steel toed boots or shoes (recommend rubber for shaker and drill crOW) d. Protective clothing (disposable suits or slicker suits) e. Barrier cream f. Rubber gloves Note: As always, follow the rig and operators safety rules. 4. If you get mud on your skin, wash it off as soon as possible. Do not allow mud to s ay i ,ti; n t for longer than 30 -40 minutes. Do not wash with rig soap! Use =GCS' O han with your skin fo Y 9 P «� � degreaser or other similar type product. 9 Yp p rillin fluid, then change your clothes. saturated with drilling c a a ou c o '" n continue to 5. If clothing becomes s g g y C work in clothes saturated with mud. 6. Designate one rig washing machine for muddy clothes. Do not wash titer clothes in this 9 g 9 Y � - machine. 7. Protective Equipment that has worked well on other jobs: $1 ii l 'h��i! l 9 a. Disposable suites: TYVEK BRAND b. Rubber boots: GOODALL BRAND POLY GRIP BOOTS MODEL #A1541 ` 1111! „; c. Coverall ants. GOODALL ARMOR LITE OVERALL, MODEL #C2522 P d. Coverall Jacket: GOODALL ARMOR LITE JACKET, MODEL #C2520 8. Common sense when working with drilling fluid will prevent any safet, ' btem's. I f ou g 9 Y Y get drilling fluid on you, wash it off. If you have to work with or around tote rnud,- -wear your protective equipment. Watch your step and clean up any spills. • '70111V1111111011 , !!'11111111111111 1 11: r • I1 Appendix 4 — Recommended Drilling Practices A. Operational Procedures: p 1. Stage into open hole several increments breaking circulation each t a li circulating for a period 9 eriod of time to get the fluid moving. 2. Idle pumps when beginning circulation to minimize surge pressures - 3. Work pipe and rotate while circulating to help break up gel strengths Deviated holes will have a tendency to aggravate barite sag problems. These type sons may�I;,I require higher yield points or low shear rate viscosities than the above recommended rang to compensate for this tendency. I 11 ,.1 �I 1 1 1 i l llil I 1 1 1 1 1 1 li li 1 i L. i 1 1 iI i i I 1 i i li -- 1 ,lip � � - - Ii i it ii li 1 1 1 i i lli 1 I I I i li i I • • Worldwide Drilling North America M Oil Company P.O. Box 3128 V MARATHON '' ompany Houston, TX 77253 -3128 Telephone 713 - 629 -6600 Fax 713 -499 -6737 May 18, 2010 Daniel T. Seamount, Jr. Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7 Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Ninilchik Field Well: Ninilchik Unit — Paxton #4 Dear Mr. Seamount Enclosed please find the PERMIT TO DRILL application, along with the associated attachments. The intent is to drill a well in the Beluga Pool in the Ninilchik Unit. 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 907 - 394 -0953 or by e-mail at rclawson @marathonoil.com. Sincer , Ca Rowland C. Lawson Advanced Drilling Engineer Enclosures • TRANSMITTAL LETTER CHECKLIST WELL NAME ,...41(7274/ 4 4 1 PTD# v�1006 4 V Development Service Exploratory Stratigraphic Test Non - Conventional Well FIELD: �4/ /4 CA/.e i✓ir POOL: 4 4' e#,//e �iyil" 27ezl/aq�A,� 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 NINILCHIK, SD Q( Vivi,Qf `ice 5625500 Well Name: NINILCHIK UNIT PAXTON 4 Program DEV Well bore seg ❑ PTD#: 2100640 Company MARATHON OIL CO Initial Class /Type DEV / PEND GeoArea 820 Unit 51432 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 Jocated in a defined pool No 5 Well Jocated proper distance from drilling unit_boundary Yes 6 Well Jocated proper distance from other wells No 7 Sufficient acreage av_aijable in_ drilling unit Yes 8 if _deviated, is walibore plat included 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 administrativeapproval Yes ACS 5/20/2010 13 Can permit be approved _before 15- day_walt Yes . 14 Well located within area and strata authorized.by injection Order # (put IO# in_comments) (For _ _ _ NA 15 All wells within 1/4 mile area of review identified_ (For service well only) NA 16 Pre- produced_injector: _ duration of pre production less than 3months (For service well only). _ _ _ _ NA 17 _N.onoonven._gas conforms to AS31,05.030(JA.A),(J 2A -D). NA 18 Conductor, string provided Yes Drilled to 11r. Engineering 19 surface casing protects all known U$DWs Yes 1419' TVD, 20 CMT.vol_adequate to circulate on cor]ductcr_& surf csg Yes Adequate excess. 21 CMT_voladequate totie- in_long string to surf csg Yes 22 CMT_will cover all known productive horizons Yes 23 Casing designs_ adequate for C. T, B.& permafrost Yes Adequate safety factors. 24 Adequate tankage or.reserve pit Yes Glacier Rig 1. 25 Jf_a_re- drill, has al O-403. for abandonment been approved NA New well. 26 Adequate wellbore separation_proposed No Spacing exception necessary. 27 if.diverter required, .does_it_meet regulations Yes Appr Date 28 _Drilling. fluldprogram_schematlo& equip list adequate Yes Max_ MW 9.5_ppg. WGA 5/24/2010 29 _BOPEs, do they meet regulation Yes 5M rated. 30 _BOPE _press rating.approprlate,test to_(put psig in comments) Yes MASP 1186 psi;_test BOPE to 2000 psi. l e 31 Choke_manlfold_complies w /APN RP -53 (May 84) Yes 5M rated. 32 Work will occurwithout operation_shutdown Yes 33 Js presence of H2$ gas probable No Not an H2$ area. 34 Mechanical condition of wells within AOR verified (For service well only) NA Development well. 35 Permit can be issued w/o hydrogen sulfide measures Yes Geology 36 Datapresented on potential overpressure zones NA Appr Date 37 Seismic analysis of shallow gas zones NA ACS 5/20/2010 38 seabed condltion_s off - shore) NA 39 Contact namelphone_for weekly_progress reports(exploratory only] NA Geologic Engineering - blic Spacing Exception C0628. Date: Date , Date Commissioner: Co missio Co ; loner 2 ii,.... /0 , C, , )? '5 ,9\.- : f 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 infoli nation. MARATHON Marathon Alaska Production, LLC PAXTON 4 S13 T1S R14W S.M. June 8, 2010—June 19,1.1 1'4 A• 1/2 r n = L 'I Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist CANRIG cv !a — 0 (o1- M °'"°' Marathon Alaska Production LLC PAXTON 4 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 2 1.1. EQUIPMENT SUMMARY 2 1.2. PERSONNEL SUMMARY 3 2. GENERAL WELL DETAILS 4 2.1. OBJECTIVES 4 2.2. WELL RESUME 4 2.3. HOLE DATA 4 3. GEOLOGICAL DATA 5 3.1. LITHOLOGY REVIEW 5 3.2. SAMPLING PROGRAM AND DISTRIBUTION 12 4. DRILLING DATA 13 4.1. DAILY ACTIVITY SUMMARY 13 4.2. SURVEY RECORD 19 4.3. BIT RECORD 24 4.4. DRILLING PROGRESS CHART 25 5. DAILY REPORTS 26 Enclosures: 2"/100' Formation Log (MD and TVD) 2"/100' LWD Combo Log (MD and ND) 2"/100' Drilling Dynamics(MD and ND) Final Data CD 1 CANRIG Marathon Alaska Production LLC PAXTON 4 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Comments Downtime Low gas readings are a persistent concern due to the immediate pre-shearing Standard Air Drive Trap Mounted In straight ightn down through an tai p straight down through an air Ditch Gas Possum Belly; FID Total Hydrocarbon 0 gap as it exits the flow line Analyzer And Chromatograph and impacts the fluid of a tiny possum belly in a wide splash,before reaching the gas trap. Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On 0 Drum Shaft Pump stroke counters Externally Mounted Magnetic Proximity 0 Sensor Hookload/Weight on bit(WOB) Hydraulic Pressure Cell 0 Drill string torque Hydraulic Pressure Cell 0 Top drive rotary(RPM) Externally Mounted Magnetic Proximity 0 Sensor _ Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in/out(MFI/MFO) MFI Derived From SPM/MFO From 0 Flow Paddle Pit volumes Ball and probe sensor 0 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 2 CANRIG M '"°"'"°' Marathon Alaska Production LLC PAXTON 4 1.2. PERSONNEL SUMMARY Unit Number: ML006 PAXTON 4 Years Days Sample Catchers/ Days Days Mudloggers Experience at Trainees at Technician at well well well Craig Silva 31 20 Zach Mester 6 Steve Forrest 1 Ralph Winkelman 19 20 Steve Franzen 6 3 CANRIG M Marathon Alaska Production LLC PAXTON 4 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of PAXTON 4 is to drill and case a high angle (80°) hole without incident, and successfully complete it as a multi zone development gas well. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: Paxton#4 Field: Ninilchik Unit, Beluga Pool County: Kenai Borough State: Alaska Company Representatives: Rowland Lawson Brad Rasch Grant Pribilski Location: 678' FNL, 2940' FEL Sec 13, T71 S, R14W, SM Classification: Development Gas, Multiple Zone API#: 50-133-20589-0000 Permit#: 210-064 Activity Code: (WBS#s) DD.09.21293.CAP.DRL Rig Name/Type: Glacier#1 /Land/Double Elevation: Ground, RKB 148.60' MSL; 169.60' RKB Primary Targets:/Target Depths: Beluga B1 &B2 4110'and 5320' respectively Primary Targets:/Target Depths Tyonek T1 coal 6542' Spud Date: June 8, 2010 Total Depth 6953' Total Depth Formation: Tyonek Total Depth Date: 6/19/2010 MWD Company:/Tools Run: Baker Hughes Inteq / Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M-I SWACO Logging Companies: None 2.3. HOLE DATA PAXTON 4 Hole Maximum Depth T.D. Mud Deviation Shoe Depth F.I.T. g Casing Section MD SSTVD Formation Weight (°inc) MD SSTVD EMW 12.1/4" 2515' 1251' Beluga 9.4 81.16 9 5/8" 2494' 1247.77 15.0 8 1/2" 6953' 3661.67' Tyonek 9.5 37.59 4 %" 6579' 3365.24' N/A 4 CANRIG M Marathon Alaska Production LLC PAXTON 4 3. GEOLOGICAL DATA 3.1. LITHOLOGY REVIEW Sand/Conglomeratic Sand/Conglomerate(2515'-2540')= medium dark gray to dark gray;fine upper to pebble(and possibly to boulder); poorly to marginally mod sorting; mostly medium lower to coarse upper; minor mode consistent in coarse upper to granule; dominantly subangular to angular; large fraction (and locally dominant)subrounded to round; compositional graywacke; estimate 30-60%quartz, trace feldspar, 5-10%various cryptosilic(chert, chalcedony),40-65% lithics and mafic minerals; note large cobble fragments of dense black argillite. Sand/Sandstone/Tuffaceous Sandstone(2540'-2775')= medium gray to dark gray to light medium gray when intergrain ash content increases; some sand is fairly clean-looking and other zones are borderline to very sandy tuffaceous claystone; fine lower to pebble, mod sorted in fine upper to coarse lower range; dominantly subangular to subrounded, but note diverse distribution from angular to well rounded; note tuffaceous sandstone with highest ash content also displays very dominant rounded to subrounded grains and higher quartz to lithics ratio; intergrain material of tuffaceous sandstone ranges from fairly undisturbed volcanic ash to well reworked tuffaceous clay-silt; continued dominant compositional graywacke, especially massive sands that disaggregate easily and appear cleaner after washing; estimate 35-75%quartz,trace feldspar, 5-10% diverse cryptosilica(chert, chalcedony)and undifferentiated silica, 20-80% lithics and mafic minerals; abundant medium-dark gray-grayish black argillite phyllite rock fragments. Sand (2775'-2880')= massive, generally homogeneous sand section; all non-sand constituents less than 10%; subtle fining upward throughout section; medium dark gray to dark gray; fine to medium upper; rare grains outside range; moderately well to moderately sorted; angular to subrounded; mostly equant subspherical to subdiscoidal grains; nearly all disaggregated loose grains; trace sandstone with patchy intergrain tuffaceous clays; compositional graywacke estimate 30-50% quartz and volcanic glass, trace feldspar, 5-10%various cryptosilica(chert, chalcedony)and other non-differentiated silica; 50-70% lithics and mafic minerals; medium gray to dark gray to grayish black argillite and phyllite rock fragments comprise 90% of the lithics; trace greenstone rock fragments; note distinctive trace to spotty coppery colored mica that may be brown phase of biotite, or possibly phlogopite. Tuffaceous ClaystoneNolcanic Ash/Tuffaceous Siltstone(2515'-3000')=all tuffaceous rocks derived from volcanic ash; only occasionally is the designated volcanic ash undisturbed in its original air fall location; all tuffaceous rocks have been reworked to varying degrees; tuffaceous claystone-siltstone and indicated volcanic ash have many shared characteristics; colors and textures blend together and glass shards and various other bits of remnant ejecta are commonly discernible; ash is usually lighter gray or white, has a greater abundance of shards, may display shard to shard contact, often looks less reworked, will have a soft glassy appearance, and occasionally display faint textural remnants of its original airfall material; most tuffaceous clay is: medium to light grays and grayish browns generally soft with varying degree of slight hardness, range of textures include clayey, silty, soft matte, ashy and many mixed and mottled variations; lustre is mostly earthy to dull, but occasionally sparkly in part when shards are abundant;tuffaceous siltstone has same textures and lustre, but includes various grainy variations as it is mixed with coarser sediments; all tuffaceous rocks are closely gradational to each other. Sand (2880'-3160')= more localized variations than massive homogenous interval above; very common fining upward, and generally poorer sorting; continued dominant dark gray;fine lower to coarse upper; trace floating larger grains; moderately to poorly sorted; angular to rounded; dominant equant subdiscoidal to subspherical grains; very abundant disaggregated loose grains, but common sandstone with patchy intergrain tuffaceous clay; compositional graywacke estimate 30-60%quartz and volcanic glass,trace feldspar, 5-10%cryptosilica(chert, chalcedony) and non-differentiated silica; 40-70% lithics and mafic minerals. 5 CANRIG M Marathon Alaska Production LLC PAXTON 4 Tuffaceous Claystone/Tuffaceous Siltstone(3160'-3250)= light to medium light gray with light yellowish to light brownish gray secondary hues;very soft; sticky at times; shapeless, globular cuttings; silty to clayey texture; dull to slightly sparkly luster from ash content; moderate to very soluble; hydrophilic; slight to moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous. Sand (3210'-3320')= medium gray overall with a strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray, medium to dark greenish gray, black,trace white and pale rose; very fine upper to coarse upper, dominantly fine lower to medium upper; moderately well sorted; unconsolidated; angular to subangular; trace dark brown to black carbonaceous material/coal. Coal/Carbonaceous Shale(3320'-3350)= black with dark brown secondary hues; very firm to moderately hard; subblocky to splintery cuttings; planar fracture dominant with trace conchoidal and birdeye; smooth to slightly gritty texture; dull to earthy luster; lignitic to sub-bituminous; no to trace visible outgassing bubbles present. Tuffaceous Claystone/Tuffaceous Siltstone(3320'-3440)= medium light to light gray with light yellowish gray to light brownish gray secondary hues; very soft; amorphous, shapeless cuttings; silty to clayey texture; dull to slightly sparkly luster; very soluble; moderately expansive when hydrated; hydrophilic; poor cohesiveness;fair to good adhesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions. Coal/Carbonaceous Shale(3430'-3470')= black with dark brown secondary hues; very firm to moderately hard; subblocky to splintery cuttings; planar fracture dominant with trace conchoidal and birdeye; smooth to slightly gritty texture; dull to earthy luster; lignitic to sub-bituminous; no to trace visible outgassing bubbles present. Sand (3440'-3540')= medium gray overall with a weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray, medium to dark greenish gray, black and trace white liths; very fine upper to coarse lower, dominantly fine lower to medium lower; moderately well sorted; unconsolidated; angular to subangular;trace to common very dark brown to black carbonaceous material and or coal; non calcareous; trace shell fragments. Tuffaceous Claystone/Tuffaceous Siltstone(3520'-3620')= light to medium light gray with trace very light brownish gray secondary hues;very soft; pulverulent; very sticky at times; shapeless globular cuttings; silty to clayey texture; dull luster; hydrophilic; very soluble; moderately expansive; poor cohesiveness; fair to good adhesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; non calcareous;trace shell fragments. Coal/Carbonaceous Shale(3600'-3660')= black with dark brown secondary hues;firm to moderately hard; brittle at times subblocky to platy; planar fracture dominant; smooth to slightly gritty texture; resinous to earthy luster; lignitic to sub-bituminous; no to trace weak outgassing bubbles. Sand (3620'-3740')= medium gray with a strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black,white and dark greenish gray; very fine upper to trace very coarse lower, dominantly fine lower to medium lower; angular to subangular, trace subrounded; moderately well sorted; disaggregated; non calcareous;trace dark brown to black carbonaceous material/coal. Tuffaceous Claystone/Tuffaceous Siltstone(3700'-3800)= medium light to light gray with light yellowish gray to light brownish gray secondary hues; very soft; amorphous, shapeless cuttings; silty to clayey texture; dull to slightly sparkly luster; very soluble; moderately expansive when hydrated; hydrophilic; poor cohesiveness; fair to good adhesiveness; non calcareous;trace dark brown to black microthin carbonaceous laminations and particles. 6 CANRIG M Marathon Alaska Production LLC PAXTON 4 Calcareous Tuff(3780'-4000')= medium light gray to pale yellowish brown with streaks of grayish orange; brittle to marginally hard; smooth-clayey to"dense grainy"to microsucrosic textures; dull to subwaxy lustre; mild effervescence; evident partial silica replacement; subplaty to platy habit. Tuffaceous Claystone(3800'-4000')= note 2 variations of claystone; 1)medium light gray to medium gray; soft to slightly firm; amorphous to slightly blocky; clayey to silty to soft matte textures; earthy lustre; hydrophilic, soluble in part; moderate adhesiveness, poor cohesiveness; common"floating"carbonaceous fragments and sand grains; some gradational to very clayey soft sandstone; spotty to abundant micro to macro glass shards; also often grading to volcanic ash; dominant supporting intergrain material of most sandstone; 2) note interbedded hard to brittle and mostly tough claystone, medium gray to medium dark gray, smooth to dense clayey texture; earthy to dull lustre; slightly shaly in part; trace fissility; grades to denser-looking non-tuffaceous variation of claystone; a significant fraction of the tuffaceous claystone- siltstone is calcareous in part, and grades to thinly-bedded locally common calcareous tuff. Sand/Sandstone/Tuffaceous Sandstone(3740'-4200')= medium gray to dark gray to light medium gray when intergrain clay content increases; some is fairly"clean-looking" but most has significant intergrain clay; common sandy tuffaceous claystone; fine lower to coarse lower, most is moderately sorted within fine to medium; dominantly subangular to subrounded, but note consistent fractions from angular to well rounded; tuffaceous sandstone often displays greater abundance of rounded to subrounded grains and higher quartz to lithics ratio; intergrain material of tuffaceous sandstone ranges from fairly undisturbed volcanic ash to well reworked tuffaceous clay-silt; compositional graywacke; estimate 40-60%quartz and volcanic glass,trace feldspar, 5-10%cryptosilica (chart, chalcedony) and undifferentiated silica,40-60% lithics and mafic minerals; mafics mostly undifferentiated black and dark blackish vari-colored minerals, but biotite and augite discernible, and distinctive spotty flakes of"goldish-colored" mica which may phlogopite or yellowish phase of biotite; 80-90%of lithics continue to medium gray to black to grayish black phyllite-argillite rock fragments; remaining lithics are greenstones, quartzite, and diverse meta- igneous rock fragments; 80% of quartz is colorless to pale gray and translucent, 20% of quartz and near 100%of volcanic glass is colorless and transparent. Coal/Carbonaceous Shale(4190'-4250')= black with dark brown secondary hues; firm to moderately hard; brittle at times subblocky to platy; planar fracture dominant with trace conchoidal and birdeye fracture present; smooth to slightly gritty texture; resinous to earthy luster lignitic to sub-bituminous;trace to common visible outgassing bubbles. Tuffaceous Claystone/Tuffaceous Siltstone(4210'-4320)= medium light to light gray with light brownish gray to light yellowish gray secondary hues; amorphous, shapeless cuttings; very soft silty to clayey texture; dull to earthy to slightly sparkly from ash content; trace visible glass shards; hydrophilic; moderate to very soluble; slight to moderately expansive; poor cohesiveness; fair to good adhesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions; trace thin coal beds; non calcareous. Sand/Sandstone(4280'-4400')= medium to medium light gray with strong salt and pepper appearance, individual grains are dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, light gray to medium light greenish gray and white liths; very fine lower to trace very coarse lower, dominantly fine lower to medium lower; angular to subangular; moderately well sorted; dominantly disaggregated with trace medium light gray sandstone; very fine lower; very hard to brittle; angular fragments; very well sorted;well cemented;very calcareous; trace to common very dark brown to black carbonaceous material/coal; present as thin beds in dominantly claystone and sandstone formation;trace light to medium light gray sandstone; soft; very fine lower; non calcareous; commonly grades between a silty sandstone and sandy siltstone. 7 CANRIG M Marathon Alaska Production LLC PAXTON 4 Tuffaceous Claystone/Tuffaceous Siltstone(3990'-4510')= light gray to medium light gray with light brownish gray secondary hues; shapeless, globular to irregular and rounded discoidal shaped cuttings; very soft; fragile; silty to clayey texture; dull to earthy luster hydrophilic; moderate to very soluble; slight to moderately expansive; poor cohesiveness; poor to fair adhesiveness; non calcareous; trace to common dark brown to black microthin carbonaceous laminations and inclusions. Coal/Carbonaceous Shale(4480'-4550')= black with dark brown secondary hues;firm to moderately hard; brittle at times subblocky to platy; planar fracture dominant with trace conchoidal and birdeye fracture present; smooth to slightly gritty texture; resinous to earthy luster sub-bituminous; trace to common visible outgassing bubbles. Sand/Sandstone(4520'-4640')= medium to medium light gray with strong salt and pepper appearance, individual grains are dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, light gray to medium light greenish gray and white liths; very fine lower to trace coarse lower, dominantly fine lower to medium lower; angular to subangular; moderately well sorted; dominantly disaggregated with trace medium light gray sandstone; very fine to fine upper; very hard to brittle; angular fragments; very well sorted; well cemented; very calcareous; scattered thin coal beds throughout. Tuffaceous Claystone/Tuffaceous Siltstone(4600'-4720)= medium light to light gray with light brownish gray to light yellowish gray secondary hues; amorphous, shapeless cuttings; very soft silty to clayey texture; dull to earthy to slightly sparkly from ash content; trace visible glass shards; hydrophilic; moderate to very soluble; slight to moderately expansive; poor cohesiveness; fair to good adhesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions. Sand/Sandstone(4680'-4800)= medium to medium dark gray with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass with medium to dark gray and black, medium greenish gray; very fine lower to trace coarse lower, dominantly fine upper to lower; moderate to very well sorted; angular to subangular; dominantly disaggregated with scattered very fine to medium sandstone; medium to medium light gray; very fine; very well sorted;very calcareous cement; and salt and pepper sandstone;fine to medium grain; hard;very calcareous; yellowish gray to brownish white matrix common;trace to common dark brown to black carbonaceous material/coal. Tuffaceous Claystone/Tuffaceous Siltstone(4760'-4880')= medium light to light gray with light brownish gray secondary hues; shapeless, globular cuttings;very soft; sticky at times; silty to clayey texture; dull to earthy to slightly sparkly luster; hydrophilic; moderate to very soluble; slight to moderately expansive; poor cohesiveness;fair to good adhesiveness; trace dark brown to black microthin carbonaceous laminations and inclusions;trace thin coal beds; non calcareous. Sand/Sandstone(4880'-5000')= medium to medium dark gray, moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, medium light greenish gray, and black;very fine lower to very coarse upper, dominantly fine upper to medium upper; well sorted in fine to medium range, poorly sorted in coarse; angular to trace subrounded, dominantly subangular; dominantly disaggregated with trace to common light medium gray very fine hard very calcareous sandstone; trace dark brown to black carbonaceous material. Tuffaceous Claystone/Tuffaceous Siltstone(4970'-5200')= medium light gray to light gray to light bluish gray; soft; irregular, shapeless cuttings; silty to clayey texture; dull to earthy luster; hydrophilic; moderate to very soluble; moderately expansive; poor cohesiveness; poor to fair adhesiveness; non calcareous;trace dark brown to black microthin carbonaceous laminations and inclusions; trace medium to medium dark gray tuffs; fragile to pulverulent; moderate to very calcareous. Coal/Carbonaceous Shale(5040'-5120')= black with dark brown secondary hues;firm to moderately hard; brittle at times; subblocky to platy; planar fracture dominant with trace conchoidal and birdeye fracture present; smooth to slightly gritty texture; resinous to earthy luster sub-bituminous; no visible outgassing. 8 CANRIG M Marathon Alaska Production LLC PAXTON 4 Sand/Sandstone(5090'-5200')= medium to medium dark gray with medium greenish gray secondary hue, individual grains dominantly medium to dark gray, clear to translucent quartz and volcanic glass, black, light to medium greenish gray; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderate to moderately well sorted; dominantly disaggregated with scattered sandstone fragments medium gray;fine grain; very calcareous. Calcareous Tuff(5200'-5400')= medium light gray to medium gray with microstreaks of pale yellowish brown and grayish orange; brittle to marginally hard; "dense micro-grainy"to microsucrosic textures; some with clayey-silty patches; vitreous lustre, but grainy so occasionally appears microsparkly, occasionally appears dull; trace fraction appears subwaxy; moderate to strong effervescence; some secondary silica replacement; irregular to subplaty to subblocky habit; gradational to both tuffaceous siltstone and local non-tuffaceous sandy-grainy siltstone. Siltstone(5200'-5400')=non-tuffaceous non-differentiated siltstone that appears to share close association with calcareous tuff and very fine silty sandstone; medium light gray to medium gray; mostly "coarse"siltstone borderline to very fine silty sandstone; slightly calcareous, but repeatedly appears in combination with more strongly effervescing calcareous tuff; no abundant evidence, but rare cuttings fragments indicate micro-thin interbeds that"merge and mix"from one lithology to the other; brittle to hard; grainy-abrasive to"nearly smooth" micrograiny textures; subvitreous to vitreous luster with same characteristics as calcareous tuff above; rare pieces of interbedded tuffaceous and non-tuffaceous types. Sand/Sandstone(5200'-5600')= medium light gray to medium gray; occasional "dirty" pepper and salt appearance; very fine lower to rare granule; mostly moderately sorted in fine upper to medium upper range; inconsistent fining upward; probably thinly interbedded as repeat sandstone layers and/or interlayered with other lithologies; dominantly angular to subangular; mostly equant subspherical to subdiscoidal shape; note that spotty fraction of subrounded to rounded grains is evenly distributed through entire size range; dominantly disaggregated; consolidated sandstone usually very friable; lesser percentage fraction of tuffaceous clay matrix supported soft sandstone; spotty to common pieces of calcareous grain supported sandstone; note that sandstone in very fine range often grades to the non- tuffaceous sandstone described above; pieces often display intergrain support with mix of both soft clay- ash material and calcite-silica cementation; compositional graywacke; estimate 30-65%quartz and volcanic glass, trace feldspar, 5-15% cryptosilica (chert, chalcedony) and non-differentiated silica,30- 65% lithics and mafic minerals 85-90%of lithics fraction is medium gray to dark gray to grayish black medium grade metamorphic phyllite and argillite rock fragments; phyllite is 75%or more of total lithics; remaining lithics are diverse greenstone, igneous and meta-igneous rock fragments; lithics distribution is sometimes interrupted by influxes of clastic coals and other sedimentary rock fragments. Tuffaceous ClaystoneNolcanic Ash/Tuffaceous Siltstone(5200'-5700')=all tuffaceous rocks derived from volcanic ash; only some of the designated volcanic ash is relatively undisturbed in its original air fall deposition; all tuffaceous rocks have been reworked to varying degree; all tuffaceous group rocks have many shared characteristics; color groups show little variation, textures merge together and glass shards and various other bits of remnant ejecta are commonly discernible; ash is often a higher lightness value, has more abundant shards, shows greater shard contact, often looks less reworked, can have a glassier appearance and occasionally will display faint textural remnants of its original airfall material; most tuffaceous clay is medium to light gray to grayish brown generally soft but ranging to marginally hard, has a range of textures that include clayey, silty, soft matte, ashy and many mixed and mottled variations, lustre is mostly earthy to dull, but occasionally sparkly in part when shards are abundant; tuffaceous siltstone has same textures and lustre, but includes various grainy variations as it is mixed with coarser sediments; all tuffaceous rocks are closely gradational to each other; note that spotty pieces of the tuffaceous siltstone are gradational to a non-tuffaceous sandy siltstone. 9 CANRIG M Marathon Alaska Production LLC PAXTON 4 Sand/Sandstone(5600'-5900')= medium light gray to medium gray;frequent"dirty" pepper and salt appearance; very fine lower to coarse lower; mostly moderately sorted in fine upper to medium upper range; inconsistent fining upward; common thinly interbedded sandstone layers, also interbedded with other lithologies; dominantly angular to subangular; subspherical to subdiscoidal equant shape; spotty subrounded to rounded grains; dominantly disaggregated; consolidated sandstone mostly friable; abundant tuffaceous clay matrix supported sandstone; spotty to common calcareous grain supported sandstone; compositional graywacke; estimate 30-65% quartz and volcanic glass,trace feldspar, 5-15% cryptosilica(chert, chalcedony)and non-differentiated silica,30-65% lithics and mafic minerals dominated by medium gray phyllite rock fragments. Tuffaceous Claystone/Tuffaceous Siltstone(5880'-6100')= medium light to light gray with light brown to light brownish gray secondary hues; soft; irregular, shapeless cuttings; silty to clayey to occasionally gritty texture; dull to earthy luster; moderate to very soluble; slight to moderately expansive; poor cohesiveness; poor to fair adhesiveness; non calcareous; trace to common dark brown to black microthin carbonaceous laminations and inclusions; trace light brown to light brownish gray siltstone; firm to friable; commonly grades between sandy siltstone and silty sandstone; non to slightly calcareous. Coal/Carbonaceous Shale(5950'-6100')= black with dark brown secondary hues;firm to moderately hard; brittle at times; subblocky to platy; planar fracture dominant; smooth to slightly gritty texture resinous to earthy luster; sub-bituminous trace outgassing bubbles present. Sand/Sandstone(6000'-6100')= medium gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light gray to medium greenish gray very fine lower to trace coarse lower, dominantly fine grain; angular to subangular with rare subrounded; moderate to well sorted; dominantly unconsolidated with trace very fine, light gray sandstone;firm to hard;well sorted; very calcareous;trace light brownish gray siltstone that grades to silty sandstone to sandy siltstone; non calcareous. Calcareous Tuff(6100'-6300')= medium light gray to medium gray with micro-patches of pale yellowish brown and grayish orange; brittle to moderately hard; "dense micro-grainy"to microsucrosic textures; spotty smoother clayey-silty patches; vitreous lustre on grainy texture, so occasionally looks microsparkly and occasionally looks dull; trace clayey fraction is subwaxy; moderate to strong effervescence; minor secondary silica replacement; irregular to subplaty to subblocky habit; gradational to both tuffaceous siltstone and local silty-grainy very fine sandstone or sandy siltstone. Sand/Sandstone(6100'-6500')= medium light gray to medium gray; very common"dirty"salt and pepper appearance;very fine lower to very coarse lower; moderately sorted in fine upper to medium upper range; inconsistent fining upward; most sand sections are thinly bedded repeat sandstone layers; often interbedded with other lithologies; dominantly angular to subangular; mostly equant subspherical to subdiscoidal shape; note that minor fraction of subrounded to rounded grains is evenly distributed through entire size range; dominantly disaggregated; consolidated sandstone usually very friable; lesser percentage fraction of tuffaceous clay matrix supported soft sandstone; spotty to common pieces of calcareous grain and matrix supported sandstone;very fine silty sandstone occasional grades many sandstone pieces also display complex mix of both soft clay-ash material and calcite-silica cementation; compositional graywacke; estimate 30-65%quartz and volcanic glass,trace feldspar, 5-15%cryptosilica (chert, chalcedony)and non-differentiated silica,30-65% lithics and mafic minerals 85-90%of lithics fraction is medium gray to dark gray to grayish black medium grade metamorphic phyllite and argillite rock fragments; phyllite is 75%or more of total lithics; remaining lithics are diverse greenstone, igneous and meta-igneous rock fragments; lithics distribution is sometimes interrupted by influxes of clastic coals and other sedimentary rock fragments. 10 CANRIG M Marathon Alaska Production LLC PAXTON 4 Tuffaceous ClaystoneNolcanic Ash/Tuffaceous Siltstone(6100'-6600)=all tuffaceous rocks derived from volcanic ash; only some of the designated volcanic ash is relatively undisturbed in its original air fall deposition; all tuffaceous rocks have been reworked to varying degree; all tuffaceous group rocks have many shared characteristics; color groups show little variation, textures merge together and glass shards and various other bits of remnant ejecta are commonly discernible; ash is often is a higher lightness value, has more abundant shards, shows greater shard contact, often looks less reworked, can have a glassier appearance and occasionally will display faint textural remnants of its original airfall material; most tuffaceous clay is medium to light gray to grayish brown; generally soft but ranging to marginally hard, has a range of textures that include clayey, silty, soft matte, ashy and many mixed and mottled variations, lustre is mostly earthy to dull, but occasionally sparkly in part when shards are abundant; tuffaceous siltstone has same textures and lustre, but includes various grainy variations as it is mixed with coarser sediments; all tuffaceous rocks are closely gradational to each other; note that spotty pieces of the tuffaceous siltstone are gradational to a non-tuffaceous sandy siltstone. Coal/Carbonaceous Shale(6100'-6700')= black to brownish black; brittle and fragile to marginally hard and tough; carbonaceous shale: firm to moderately brittle; smooth to dense matte texture; carbonaceous shale can have dense clayey(organic)texture; dull to earthy lustre(lignite-carbonaceous shale); dull to subvitreous to vitreous to subresinous lustre(lignite-higher grade coal); dominantly lignite to marginal bituminous; lignite also grading to carbonaceous shale; irregular to thin platy to hackly fracture if lower grade lignite; subplaty to subblocky to subconchoidal fracture dominant; occasional birdeye and conchoidal fracture; trace to occasional very common bubbles from outgassing of higher grade coals. Sand/Sandstone(6700'-6820')= medium light to light gray with individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray, light greenish gray, trace dark gray to black; very fine lower to medium lower, dominantly fine grain; angular to subangular; very well sorted; dominantly disaggregated with trace fine to medium grain sandstone; medium gray; hard; very calcareously cemented; common to abundant ashy tuff;white to very light gray to grayish white; fragile to pulverulent moderate to very calcareous; ashy clays commonly act as a supporting matrix for loosely supported sands. Tuffaceous Claystone/Tuffaceous Siltstone(6780'-6860')= medium light gray to light gray with light bluish gray and light brownish gray secondary hues; soft; irregular shaped cuttings; silty to clayey to slightly gritty texture; dull, earthy to slightly waxy luster; moderately soluble and expansive; poor to fair cohesiveness and adhesiveness; trace to common dark brown to black microthin carbonaceous laminations and particles;trace light brown to light brownish gray siltstone; soft to fragile; irregular to rounded cuttings; commonly grades to silty sandstone/sandy siltstone; also common to abundant light gray to light grayish white volcanic ash; fragile to pulverulent; non to slightly calcareous overall; locally very calcareous Sand/Sandstone(6880'-6953')= light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray, light greenish gray,trace dark gray to black; very fine lower to medium upper, dominantly fine; angular to subangular; well sorted; dominantly disaggregated; trace fine to medium consolidated: medium gray, hard, calcite cemented; common to abundant white to very light gray to grayish white ashy tuff matrix;fragile to pulverulent; moderate to very calcareous overall. 11 CANRIG M Marathon Alaska Production LLC PAXTON 4 3.2. SAMPLING PROGRAM AND DISTRIBUTION Paxton 4 Set Type and Purpose Interval Frequency Distribution Marathon Oil Company Go C &M Storage, Inc. 3311 S U.S. Highway 77 A Washed and Dried 2515'-6953' 20' Schulenburg,TX 78956 Attn: David Gorney (713)296 3473 BOX INTERVAL : 2515'—3400', 3400'—4240', 4240'—5200', 5200'—6000', 6000'—6953' 5 dry boxes, 222 dry envelopes 12 CANRIG M wvaN' Marathon Alaska Production LLC PAXTON 4 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 06/05/2010: Arrive on location and begin rig up. 06/06/2010: Continue rig up. 06/07/2010: Continue rig up activities. Nipple up diverter stack. Install flowline extension, cellar platforms and kill line hose. Nipple up bell nipple. Install trip tank valve actuator. Rig up kill line to conductor. Mix spud mud. Troubleshoot repeated charge pump failures generated by PLC control and/or programming problems. Nipple up knife valve and diverter line. Install mouse hole. Isolate and correct PLC programming responsible for charge pump misfunction. Fix hydraulics malfunction of V-door tugger controls. Rig up mud manifold. Rig up bleeder and fill-up lines. Chain off stack and diverter line. Rig up rig tongs. Test all (1,2,3)mud pumps. Rig up flow line joint to flowline extension. Rig up elevators. Test link tilt with elevators. Rig up manual trip tank gauge. Nipple up end piece to diverter. Rig up monkey board. Activate and test movement of top drive rotary driver. Test No.1 and No.2 Denison pumps. Remove drive line to carrier motor#1. Fix trip tank float. Test high level alarms. Test grabber interlock. Test chicken brake. Check crown-o-matic. Inspect saver sub. Test annular preventer and knife valve. Perform accumulator drawdown function test. Function test and calibrate high and low gas alarms. Check flowline sensor. 06/08/2010: Pick up, drift, make up and stand back HWDP and jars. Pick up, make up and run in hole with Bit#1, motor and NM UBHO sub. Orient lower tools. Pick up, make up and continue running in hole with NM string stabilizer, NM CSDPs and crossover. Rig up Expro wireline. Fill hole. Drill from 117'to 336'. Observe malfunction of grabber box hydraulic lift. Pull out of hole from 336'to 90'. Repair grabber box. (Replace sheared pins). Pull out of hole laying down drill-out BHA. Pick up, make up and run in hole with initial directional tools(Bit#1 RR, motor, NM pony CSDP, NM string stabilizer, MWD, 3 NM CSDPs, crossover,4 HWDP). 06/09/2010: Break circulation. Troubleshoot and correct MWD decoding problem before drilling ahead. Wash down from 307'to 336'. Drill from 336'to 345'. Pick up and make up jars. Continue drilling ahead (rotating and sliding)from 345'to 1520'. Circulate bottoms up and continue to circulate, clean and condition hole. Pull out of hole on wiper trip from 1520'to 169' (outside of conductor). Service rig and topdrive. Run back in hole from 169'to 1454'. 06/10/2010: Break circulation. Troubleshoot and correct MWD decoding problem before drilling ahead. Wash down from 307'to 336'. Drill from 336'to 345'. Pick up and make up jars. Continue drilling ahead (rotating and sliding)from 345'to 1520'. Circulate bottoms up and continue to circulate, clean and condition hole. Pull out of hole on wiper trip from 1520'to 169' (outside of conductor). Service rig and topdrive. Run back in hole from 169'to 1454'. 13 CANRIG Marathon Alaska Production LLC PAXTON 4 06/11/2010: Continue pulling out of hole(SLM)from 1646'to 109' (inside conductor). Service rig and topdrive. Replace bad u-joint on#2 denison drive line. Set and check crown-o-matic. Run back in hole from 109'to 2405'. Wash down from 2405'to 2515'. Circulate bottoms up and record 377 units of wiper gas. Pump around Hi-Vis nut plug sweep. Continue to circulate clean and condition hole. Mix and pump pill with 2.5% LoTorq added, and spot in annulus. Check for flow. Pull out of hole(with 5"drill pipe)from 2515'to top of HWDP at 824'. Continue pulling to 169', standing back 5" HWDP and jars. Pull, break and lay down directional tools(crossover, CSDPs, MWD, string stabilizer, pony CSDP, motor, bit). Inspect and grade bit. Lay down and clear handling tools. Clean rig floor. Pull wear bushing. Close blind rams. Change out upper variable pipe rams with 9 5/8"casing rams. Pick up, make up and install test joint. Rig up test equipment. Test BOP to 250psi Low/3000psi High. Rig down test equipment. Pull and lay down test joint. Close annulus valve. Drift BOP with landing joint and hanger. Mark elevation on landing joint (using single joint elevator). Move break-out tongs to driller's side. Install correct tong head. Remove elevators and short bails. Change out double kelly valve. Install and make up Weatherford's Lafleur fill- up tool. Install long bails and pick up line. Install casing elevators. Move torque tube back in derrick to provide clearance for casing running equipment. Rig up and test stabbing board. Rig up Weatherford casing tongs. Remove rotary bushings. Rig Weatherford casing spider slips. Make up EZ-turn valve onto casing swage to act as a safety valve, and then function test and record in IADC. Stage centralizers and lock rings on rig floor. Pre-clean the casing threads on the 9 5/8"shoe track joints. Tie one tugger line back in the derrick for picking up pipe, and the second tugger line back for hanging casing tongs. Hold pre-job meeting with all hands on procedures and safety for running surface casing string. Run in hole with 9 5/8"casing as per Marathon program. Pick up and make up shoe track(shoe joint, casing joint, float collar, casing joint)and run in hole to 126' (just outside of conductor). Clean and Bakerlok casing threads on each successive shoe track joint during make up. Check float equipment. Continue running 9 5/8"casing in hole from 126'to 2257'. 06/12/2010: Continue running 9 5/8"casing in hole from 2257'to 2452'. Wash down last joint and land casing at 2494'. Circulate bottoms up with Lafleur fill-up tool. Record 52 units of trip gas. Rig down and load off all of Weatherford's casing running equipment(power tongs, elevators, spider, slips). Shut down pumps. Rig down and load off Lafleur tool. Re-set tugger lines. Finish rigging up and connecting cementing lines and install BJ cementing head with top and bottom plugs pre-installed. Remove and lay down moushole. Continue to circulate and condition mud through cementing head (13956 strokes total, 643 bbls). Hold pre-job meeting with BJ on procedures and safety for cement job. Switch to BJ pumping unit. Pump water ahead to prime cementing lines. Drop bottom plug. Test lines to 2500psi. Bleed off pressure. Mix and pump 20 bbls of Mud Clean II spacer, then batch up and pump 290.00 bbls of 11.8ppg cement slurry(with 616 sacks of Type1 LW-6 cement to 168.12 bbls mix water plus chemical additives for 2.64 cu ft/sack yield). Drop top plug. Pump 5 bbls water to kick out the plug. Switch over to rig pumps. Displace cement with 179 bbls of 9.5ppg mud (pre-treated with Bicarb and Desco). Add retardant to mud returns when nearing end of displacement. Total displacement is 184 bbls. Bump plug with 1000psi over displacement pressure. Bleed off. Check floats. Cement in place. Begin wait on cement. Flush stack and mud lines. Clear and clean rig floor. Rig up rig tongs and pipe spinner. Pump out mud to trucks and begin hauling off. Clean out cellar. Lock out-tag out pits to clean. Remove tie-down chains and diverter line section. Washout Hydril. Wash and rig down cementing head. Rig down stabbing board. Finish hauling off mud. Begin cleaning pits. Nipple down diverter line. Rig down fill-up, bleeder and trip tank lines. Remove trip tank valve actuator. Rig down scaffolding and trip tank hydraulic lines. Prep cellar for cuts. Slack off of casing string. Remove knife valve. Make rough cut on 9 5/8"casing and lay down cut section. Remove and lay down riser. Rig down flowline. Nipple down and move aside accumulator lines. Install plug in stack. Nipple down diverter stack(Hydril and tee)and set in rack and load off. Spot new BOP stack. Remove starting head. Perform casing cuts as per Vetco-Gray. Rough cut 20"conductor. Final cut 9 5/8"casing. Dress 9 5/8"cut. Stage BOP stack. Set and install 9 5/8"slip lock connection with 11"(5M)flanged multibowl wellhead. Make up DSA and 11"(5M) by 13 5/8"adapter spool. Secure head and successfully test slip-lock seal to 2450psi for 10 minutes. Finish cleaning pits and begin mixing new FloPro mud. Nipple up 13 5/8" (5M) BOPs, DSA and HCR. Install DSA for mud cross and then inside kill valve. Re-set torque tube. Rig down bails and rig up short bails and elevators. 14 CANRIG M Marathon Alaska Production LLC PAXTON 4 06/13/2010: Clean trip tank. Continue mixing and building new Flo-Pro mud system. Continue nippling up 13 5/8" (5M) BOP stack. Hammer up DSA and spacer spool. Install choke hose, choke hard line with adaptor spool, kill line, and kill and check valves. Install lower pipe rams and VBRs in stack. Rig up accumulator lines. Rack, stack, bolt up and hammer up mud cross and single gate to the double gate and annular preventer. Remove annular plug. Install annular quick connects. Nipple riser and flow line adaptor. Install drip pan. Chain up turnbuckles to stack. Install flow, fill-up, bleeder and trip lines. Install trip tank valve and actuator. Continue mixing new mud. Pick up BPA and rig up hard line. Function test BOPs. Test gas alarm system. Make up and run in test joint assembly. Set test plug. Rig up testing equipment. Test all BOPE(annular, upper and lower pipe rams, upper and lower topdrive kellycock, blind rams, check valve, inside and outside kill line check valve systems, HCR, manual choke valve, 5"floor and dart valves and CMVs 1-12)to 250psi Low/2000psi High for 5 minutes. Perform accumulator drawdown test. Rig down testing equipment. Pull test plug. Set wear bushing. Run in lockdowns. Change elevator inserts. Chain down mousehole. Pick up, make up, run in hole, and then pull out standing back, strapping and drifting 40-joint batch (20 stands) of 5"S-135 drill pipe. Test 9 5/8"casing to 1500psi for 30 minutes. Pick up, make up and run in hole clean out assembly(8 1/2"bit, 6 3/4" motor, 2 NMCSDPs, crossover, HWDP,jars). Conduct BOP drill/training exercise. Pick up, make up, run in hole, and then pull out standing back, strapping and drifting 54-joint batch(27 stands) of 5"S-135 drill pipe. 06/14/2010: Run clean-out assembly in hole to 2387'. Wash down from 2387'to top of cement at 2406'. Drill out entire shoe tract from 2406'to 2515' (cement,float equipment at 2408'-2410', cement, shoe at 2494', rathole). Drill 20'of new hole from 2515'to 2535'. Begin circulating bottoms up(1930 strokes). Cease pumping and line up to displace spud mud. Pump 20 bbls of water, and then 40 bbls of Hi-Vis sweep ahead of the new 8.8ppg Flo-Pro mud. Continue pumping and displace the old spud mud in the hole with the new Flo-Pro. Circulate bottoms up with cuttings samples during the displacement. Record 6 units maximum gas. Finish displacing well and cease pumping. Perform Formation Integrity Test (1422'tvd, 8.6ppg,460psi)to 15.0ppg EMW. Check for flow. Pull out of hole with clean-out assembly. Break and lay down motor and bit. Rig up bypass actuator and sensor on standpipe. Pick up, make up and run in hole rotary steerable assembly with quad-combo LWD-MWD tools(bit,AutoTrak motor, OnTrak stabilizer, BCPM,flex sub, ORD, CCD, SoundTrak, stabilizer, MagTrak, stabilizer, stop joint, filter sub, NM crossover, 2 NMCSDPs, steel float sub, crossover). Plug and function check connectivity and continuity of each tool and total string while running in. Load nuclear sources after checking the SoundTrak. Shallow test MWD-LWD function after string is in hole. Continue running steerable assembly in hole with 5" HWDP and jars to 885'. Continue rest of the way in the hole picking up drill pipe. Pick up, make up, strap and run in hole 48-joint batch (27 stands)of 5" S-135 drill pipe to 2406'. Run in hole stand from derrick to 2469'. Fill pipe. Wash down from 2469'to 2535'. Program logging tools while slow reaming on way to 2532'. Calibrate block height before drilling ahead. Drill from 2535'to 2695'. 06/15/2010: Drill from 2695'to 3799'. Circulate bottoms up. Circulate, clean and condition hole. Pull out of hole from 3799'to 3393'. Break circulation and pump while pulling. Back ream out of hole from 3393' to 2469' (just inside shoe). 06/16/2010: Service rig and topdrive. Grease crown. Run back in hole with drill pipe from 2469'to 3736'. Wash down from 3736'to 3799'. Drill from 3799'to 4895'. (Observe progressive AutoTrak steering head failure of over last 200'of drilling. Probable cause is guide blades failing to stay extended due to pressure loss of internal hydraulics). Circulate bottoms up. Circulate, clean and condition hole(for 2 bottoms up total). Pull out of hole from 4895'to 4749'. Backream and pump out of hole from 4749'to 3989'. 15 CANRIG M Marathon Alaska Production LLC PAXTON 4 06/17/2010: Backream and pump out of hole from 4749'to 3419'. Pull out of hole from 3419'to top of HWDP at 885'. Pull out of hole standing back HWDP,jars, crossovers,float sub and CSDPs from 885'to 164'. Break and lay down filter sub and MagTrak. Remove sources. Break and lay down SoundTrak. Stand back ORD-CCD-OnTrac tool combo. Plug in, link and download data from each tool set as it is being handled on the rig floor. Break and move aside bit. Lay down AutoTrak. Inspect and grade bit. Function test blind rams. Check crown-o-matic. Pick up, make up and run in hole bit,Autotrak, OnTrac, and SoundTrac. Load sources. Pick up, make up and run in hole MagTrac and filter sub. Plug into each tool set and program each tool as it is being handled on rig floor. Pick up stand with crossovers, CSDPs and float sub and run in hole to 230'. Kelly up topdrive. Surface test MWD-LWD tools. Continue running in hole with 5" HWDP and jars to 885'. Kelly up topdrive and perform second test of MWD-LWD assembly. Continue running in hole on 5"drill pipe from 885'to 2469' (just inside shoe). Service and lube rig. Continue running in hole from 2469'to 4876'. Break circulation and wash down from 4876'to 4895'. Record 65 units of trip gas. Drill from 4895'to 5447'. 06/18/2010: Drill from 5447'to 6017'. Circulate bottoms up. Circulate, clean and condition hole. Cease circulating, kelly down and rig up circulating head. Resume circulating and change out topdrive grabber dies. Cease circulating and rig down circulating head. Pull out of hole from 6017'to 5827'. Backream and pump out of hole from 5827'to 4749'. Pull out of hole from 4749'to 4623'. (Hole tight at 5520', 5470', 5436', 5383', 5329', 5280', 5060', 5023', 5009', 4996'). Run back in hole from 4623'to 6017' (with no fill). Break circulation. Drill ahead from 6017'. Record 485 units of trip gas. Drill from 6017'to 6270'. 06/19/2010; Drill from 6270'to 6953'. Circulate bottoms up. Pump around 30 bbls Hi-Vis sweep. Shakers clean at return of sweep,with no increase in cuttings. Continue to circulate, clean and condition hole for 2 bottoms up total. Check for flow. Pull out of hole from 6953'to 6551'. Break circulation. Backream and pump out of hole from 6551'to 5637'. Pull out of hole from 5637'to 5002'. Run back in hole from 5002'to 6953'with no fill. Break circulation and circulate bottoms up. Record 26 units of wiper gas. Shakers clean at bottoms up. Continue to circulate, clean and condition hole for 2 bottoms up total. Check for flow. Pull out of hole from 6953'to 5338'. Ream and backream out from 5338'to 5320'. Pull out of hole from 5320'to 5193'. Break circulation. Backream and pump out of hole from 5193'to 4686'. 06/20/2010: Backream and pump out of hole from 4686'to 2469' (inside shoe). Pull out of hole(SLM with no correction)from 2469'to top of HWDP at 885'. Pull out of hole standing back HWDP and jars to 230'. Break and lay down all MWD-LWD tools(crossover, float sub, crossover, 2 CSDPs , filter sub, MagTrak, SoundTrak, ORD-CCD, OnTrac,AutoTrak). Remove sources after laying down SoundTrac. Plug in, link-up and download recorded data from each successive LWD tool as it is being handled on the rig floor. Break, lay down, inspect and grade bit. Function blind rams and HCR. Pick up, make up and run in hole slick clean-out assembly(old bit, bit sub, HWDP and jars)to 658'. Continue running in hole with 5"drill pipe from 658'to 2432' (inside shoe). Fill pipe. Slip 33'of drill line. Rig down Inteq's Bypass Actuator and the actuator lines and sensors. Service carrier. Grease the drive lines, crown and blocks. Service top drive. Continue running in hole from 2432'to 6930'(filling pipe at 3889'and 5347'on way in). Pick up single, break circulation and wash down from 6930'to 6953' (with no fill). Circulate bottoms up. Record 22 units of trip gas. Hole cleaned up well. Continue to circulate, clean and condition hole for 3 bottoms up total. Check for flow. Break and lay down last single. Pull out of hole 5 stands from 6930'to 6613'. Kelly up and pump dry job. Continue pulling out of hole from 6613'to 1607'. 16 CANRIG M Marathon Alaska Production LLC PAXTON 4 06/21/2010: Continue pulling out of hole from 1607'to top of HWDP at 658'. Pull out of hole to surface. Break and lay down HWDP,jars, bit sub and bit. Clear handling tools. Clean rig floor. Pull wear bushing. Close blind rams. Test variable pipe rams on 4'/"liner. Pick up, make up and install 4 %" liner test joint. Rig up test equipment. Test VBR to 250psi Lo/2000psi Hi. Rig down test equipment. Pull and lay down test joint. Test plug pulled tight. Set wear ring. Prep to run 4'/" liner. Move break-out tongs to driller's side. Install correct tong head. Remove elevators and short bails. Change out double kelly valve. Install and make up Weatherford Lafleur fill-up tool. Install long bails, casing elevators and pick up line. Move torque tube back to provide clearance for running casing. Rig up stabbing board. Rig up Weatherford casing tongs. Remove rotary bushings. Rig up Weatherford casing spider slips. Make up EZ-turn crossover onto casing swage to act as a safety valve, function test and record in IADC. Stage centralizers and lock rings on rig floor. Pre-clean casing threads on the 4%"shoe track joints. Tie one tugger line back for picking up pipe, and the second tugger line back for hanging casing tongs. Hold pre- job meeting with all hands on procedures and safety for running liner string. Run in hole with 4'/"liner as per Marathon program. Pick up, make up and run in hole shoe track(shoe, shoe joint, casing joint,float collar, float collar joint, landing collar, landing collar joint)to 126'. Clean and Bakerlok casing threads on each successive shoe track joint during make up. Check float equipment. Continue running 4 1/2" Hydril liner casing in hole from 166'to 2460'. Rig up to circulate. Circulate liner volume and cease pumping. Continue running 4%" Hydril liner casing in hole from 2460'to 4614'. Rig up to circulate. Wash down last liner joint from 4614'to 4656'. Fill pipe and circulate bottoms up with Lafleur fill-up tool. Record 5 units maximum gas. Shut pumps down. Change out bails and elevators. Pick up and make up hanger assembly. Change out Weatherford tongs. Torque up cementing head and pup joint and lay down. Rig down and load off all Weatherford casing running equipment(Lafleur fill-up tool, power tongs, elevators, spider, slips). Re-set tugger lines. Prep to run drill pipe. Make up 1st stand of drill pipe to crossover on hanger assembly and continue running in hole 4 1/2" liner and hanger on 5"drill pipe from 4695'. Trip in was without incident until apparent(coal) ledge tagged at 6579'. Unable to work pipe down through. Break circulation and continue trying to work through ledge. Record 22 units maximum gas. Add lube to mud and briefly rotate while working pipe. Continue trying to break through ledge. 06/22/2010: Unable to get past ledge at 6579'. Decision made to cement liner in place. Continue circulating and reciprocating pipe to condition mud for cement job. While circulating, make up and build 100 bbls of viscosified brine in pits(3% KCL, 2 ppb Flo-Vis)to bump plug at displacement. Make up last cement line connections. Cease pumping. Pick up and make up BJ cementing head. Switch from rig pumps to BJ pumping unit. Hold pre-job meeting on cementing safety and procedures. Pump 3.2 bbls of water ahead to fill cementing lines. Test lines to 4500psi. Bleed off. Mix and pump 60.3 bbls of 10.0ppg Sealbond sweep-spacer,then batch up, mix and pump 324.00 bbls of 14.0ppg cement slurry(with 1086 sacks of Type1 cement to 215.88 bbls mix water plus chemicals for 1.71 cu ft/sack yield). Close valve to drill pipe, open up wash-up tee and pump 23.7 bbls of water to clean lines. Open back up to drill pipe and drop plug. Displace cement with 107.0 bbls of 9.5ppg viscosified brine mud. (Note wiper plug picked up at 35 bbs pumped during displacement, and at 69 bbls pumped return mud was diverted to slop tank). 4.0 bbls of mud pumped past planned displacement. Plug did not bump. Note that returns of the viscosified brine mud were very foamy. Cement in place. 4'/2" Liner Hanger set at 6579' (liner top at 1925'). Perform "emergency release"from hanger. Circulate out from top of hanger. Record 60 bbls of excess cement at the surface. Cease pumping. Treat slop mud with retardant and begin pumping out to Vac truck for haul off. Begin wait on cement. Flush and wash out Hydril, stack, cementing head and mud lines. Rig down cementing head, wash down hose, swings and valves. Prep to lay down drill pipe. Pull out of hole laying down 5"drill pipe(60 joints, 30 stands). Pull, break and lay down liner running tool assembly. Clear and clean rig floor. Pick up and make up polish mill assembly. Crossover to 5"drill pipe and run in hole to 1600'. Pull out of hole, breaking and laying down 5"drill pipe. Run in hole to 650'. Pull out of hole, breaking and laying down 5"drill pipe. Run in hole on with mill assembly on 5"drill pipe to 1590'. Perform various service work on rig while continuing to wait on cement. Empty and begin cleaning pits. Lube crown, blocks, carrier and drive lines. Repair torque cylinder for make-up tongs. Prep mud products to be loaded off location. Change out generator Raycor filters. Finish cleaning pits. Cement set time acceptable. Continue running in hole with polish mill assembly from 1590'to 1781'. Wash down from 1781'to 1925' (cleaning out cementer stringers at 1825'). Tag up and polish top of hanger at 1925'. Continue circulating, cleaning and conditioning in casing bore after pulling up from top of hanger. 17 CANRIG mann° Marathon Alaska Production LLC PAXTON 4 06/23/2010: Finish circulating above hanger after polishing the liner seal bore. Pull out of hole with 5" drill pipe from 1925'to surface. Break and lay down polish mill assembly. Clear and clean rig floor. Pick up and make up and 4'/"liner hanger packer with hydraulic pusher tool. Make up packer running assembly to 5"drill pipe and run in hole to top of hanger at 1925'. Tag into top of hanger and drop ball. Pump ball down with rig pumps while stabbing all the way down into the polish bore receptacle. Seat ball and switch over to BJ pumping unit. Pressure test lines to 5000psi. Bleed off test pressure. Switch to rig pumps and pressure up full pipe string to 2400psi to set packer at 1905'. Switch back to BJ pumping unit to blow ball seat with 4850psi. Pull out of hole from 1905'to surface. Break and lay down running tools for packer seal assembly. Lay down handling tools. Begin cleaning pits and building KCL 3%brine for displacing. Run in hole with 4 remaining stands of drill pipe. Pull out of hole breaking and laying down 5" drill pipe. Finish building KCL brine. Pull wear bushing. Set 11" by 7"spacer bushing in the lower multibowl section as per Vetco-Gray, to allow the 4%"tubing hanger to sit in the upper multibowl section. Test spacer bushing pack-off to 5000psi for 10 minutes. Change out bails and elevators. Lay down rig tongs. Rig up Weatherford tubing running equipment. Rig up Pollard to run and band chemical injection line. Prep rig floor to run 4' "tubing. Run 4'/"tubing with tie-back seal unit to top of hanger. Space out. Rig up landing joint. Displace hole with 3% KCL brine. Note first batch of brine to cover the back side of the well bore was mixed with Conqor A303 inhibitor fluid. Attempt to land tubing hanger. First landing attempt failed due to incorrect length. Reconfigure and remake pups for correct space out. 06/24/2010: Finish correcting pup lengths for space out. Reband stainless steel chemical injection line tubing and then pull through hanger body slot and secure. Test injection line to 1000psi (using power spooler nipple). Re-attempt and successfully land hanger. Re-test injection line to 1000psi to verify. Test tubing hanger body seals to 5000psi for 10 minutes. Test 4'/"tubing to 1500psi for 15 minutes. Test contact seal at 9%"casing to 4' "tubing to 1500psi for 30 minutes. Break and lay down landing joint. Set Back Pressure Valve. (Keep extra length of chemical injection tubing clear of obstructions). Rig down and load off Weatherford hydraulic tongs and remaining tubing handling equipment and tools. Rig down Pollard banding and injection line running equipment. Rig down sheave and power spooler. Rig down and load off pipe spinner. Pull and load off mousehole. Rig down and load off elevators and bails. Flush clean all surface lines(mud pumps 1-2-3, choke manifold, stack, choke and kill lines, cementing lines,Topdrive, poorboy, stand pipe manifold)with water back into pits. Begin pumping off all remaining fluids into Vac trucks for haul off. 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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 117/117 ND MW 8.7 VIS 58 PV 15 YP 25 FL 15.2 Gels 12/16/ CL- 600 FC 2 SQL 3.0 SD 0 OIL 0/97 MBL 25.0 pH 9.0 Ca+ 80 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) @ LID CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue rig up activities.Nipple up diverter stack.Install flowline extension,cellar platforms and kill line hose.Nipple up bell nipple.Install trip tank valve actuator.Rig up kill line to conductor.Mix spud mud.Troubleshoot repeated charge pump failures generated by PLC control and/or programming problems.Nipple up knife valve and diverter line.Install mouse hole.Isolate and correct PLC DAILY programming responsible for charge pump mifunction.Fix hydraulics malfunction of V-door tugger controls.Rig up mud manifold.Rig up bleeder and fill-up lines.Chain off stack and diverter line. ACTIVITY Rig up rig tongs.Test all(1,2,3)mud pumps.Rig up flow line joint to flowline extension.Rig up elevators.Test link tilt with elevators.Rig up manual trip tank gauge.Nipple up end piece to diverter. SUMMARY Rig up monkey board.Activate and test movement of top drive rotary driver.Test No.1 and No.2 Denison pumps.Remove drive line to carrier motor#1.Fix trip tank float.Test high level alarms. Test grabber interlock.Test chicken brake.Check crown-o-matic.Inspect saver sub.Test annular preventer and knife valve.Perform accumulator drawdown function test.Function test and calibrate high and low gas alarms.Check Bowline sensor. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:570 REPORT BY Craig Silva Marathon Oil Company Cl EPOCH Ninik:hik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Rowland Lawson DATE Jun 08,2010 DEPTH 338 PRESENT OPERATION Running in hole with directional BHA TIME 24:00 YESTERDAY 117 24 HOUR FOOTAGE 219 CASING INFORMATION 20"(I 117' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 112 0.07 038.21 112.00 172 1.76 021.37 171.99 SURVEY DATA 232 4.98 030.17 231.89 292 9.09 036.35 291.44 350 13.19 040.53 348.33 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25 HCC MXL-1 5159488 3x18 1x16cj 117 336 219 4.19 0-0-NO-A-E-1-NO-RIG Repairtopdrive 1RR 12.25 HCC MXL-1 5159488 3x18 1x16cj 336 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 152.4 (II 294 3.0 () 161 109.5 134.4 FT/HR SURFACE TORQUE 2878 @ 153 89 © 259 319.6 177.4 AMPS WEIGHT ON BIT 12 (81 297 0 @ 146 6.1 8.0 KLBS ROTARY RPM 54 g 151 33 @ 121 47.7 48.0 RPM PUMP PRESSURE 474 (BJ 297 287 (Qi 139 396.5 429.5 PSI DRILLING MUD REPORT DEPTH 336/335 ND MW 8.8 VIS 77 PV 21 YP 29 FL 14.8 Gels 12/17/19 CL- 500 FC 2 SOL 4.0 SD Tr OIL 0/98 MBL 25.0 pH 8.5 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1 (!8 298 0 (8j 180 0.5 TRIP GAS CUTTING GAS @ (81 WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 187 @ 298 0 @ 180 88.4 CONNECTION GAS HIGH ETHANE(C-2) (B3 I AVG PROPANE(C-3) 0 @ CURRENT BUTANE(C-4) @ © CURRENT BACKGROUND/AVG 0/0.5 PENTANE(C-5) i t HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY Pick up,drift,make up and stand back HWDP and jars.Pick up,make up and run in hole with Bit#1,motor and NM UBHO sub.Orient lower tools.Pick up,make up and continue running in hole ACTIVITY w6h NM string stabilizer,NM CSDPS and crossover.Rig up Expro wireline.Fill hole.Drill from 117'to 336'.Observe malfunction of grabber box hydraulic lift.Pull out of hole from 336'to 90'. SUMMARY Repair grabber box.(Replace sheared pins).Pull out of hole laying down drill-out BHA.Pick up,make up and run in hole with initial directional tools(Bit#1 RR,motor,NM pony CSDP,NM string stabilizer,MO,3 NM CSOPs,crossover,4 HWDP). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:585 REPORT BY Craig Silva • Marathon Oil Company EPOCH NiniEhik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Rowland Lawson/Grant Pribilski DATE Jun 09,2010 DEPTH 1520 PRESENT OPERATION Finishing wiper trip TIME 24:00 YESTERDAY 336 24 HOUR FOOTAGE 1184 CASING INFORMATION 20"@ 117' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 350 13.19 040.53 348.33 710 30.18 039.04 679.84 SURVEY DATA 961 42.50 037.95 881.37 1215 55.26 037.12 1048.57 1532 69.71 035.11 1195.06 BIT INFORMATION INTERVAL CONDITION REASON NO SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1RR 12.25 HCC MXL-1 5159488 3x16 1xl6cj 336 1184 10.04 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 154.9 @ 1141 24.0 @ 1134 129.5 134.6 FT/HR SURFACE TORQUE 6152 @ 1494 74 @ Sliding 5959.6 6020.6 AMPS WEIGHT ON BIT 32 @ 1416 2 @ 1134 16.0 28.6 KLBS ROTARY RPM 68 @ 459 0 @ Sliding 16.2 40.9 RPM PUMP PRESSURE 1512 @ 1405 571 @ 343 1133.8 1350.9 PSI DRILLING MUD REPORT DEPTH 1520/1191 ND MW 9.1 VIS 85 PV 18 YP 32 FL 14.4 Gels 15/36/36 CL- 400 FC 2 SOL 6.0 SD 0.5 OIL 0/94 MBL 25.0 pH 8.3 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 30 @ 1366 0 @ 340 5.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 5864 @ 1366 41 @ 345 1104.3 CONNECTION GAS HIGH ETHANE(C-2) (§2 @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 5/15 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY Break circulation.Troubleshoot and correct MWD decoding problem before drilling ahead.Wash down from 307'to 336'.Drill from 336'to 345'.Pick up and make up jars.Continue drilling SUMMARY ahead(rotating and sliding)from 345'to 1520'.Circulate bottoms up and continue to circulate,clean and condition hole.Pull out of hole on wiper trip from 1520'to 169'(outside of conductor). Service rig and topdme.Run back in hole from 169'to 1454'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:585 REPORT BY Craig Silva Marathon Oil Company [l EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Rowland Lawson/Grant Pribilski DATE Jun 10,2010 DEPTH 2515 PRESENT OPERATION Pulling out of hole on wiper trip TIME 24:00 YESTERDAY 1520 24 HOUR FOOTAGE 995 CASING INFORMATION 20"a 117' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1532 69.71 035.11 348.33 1783 7184 037.85 1269.39 SURVEY DATA 2037 78.08 037.83 1332.47 2291 79.00 03725 1383.96 2462 81.16 037.22 1412.45 BIT INFORMATION INTERVAL CONDITION REASON NO SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1RR 12.25 HCC MXL-1 5159488 3X16 1x16cj 336 2515 2179 23.00 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 168.4 a 2303 5.8 (d1 2498 101.4 63.0 FT/HR SURFACE TORQUE 9823 a 1941 59 (dj Sliding 8366.9 70042 AMPS WEIGHT ON BIT 34 a 2224 1 (d 2344 19.3 21.8 KLBS ROTARY RPM 82 @ 1943 0 (03 Sliding 60.6 61.8 RPM PUMP PRESSURE 1665 Cf4 2381 906 Ct4 1776 1293.5 1576.7 PSI DRILLING MUD REPORT DEPTH 2515/1421 ND MW 9.4 VIS 55 PV 14 YP 26 FL 7.4 Gels 9/15/16 CL- 400 FC 2 SOL 7.0 SD 0.35 OIL 1/93 MBL 17.5 pH 8.5 Cat- 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 111 a 2099 2 a 1975 201 TRIP GAS CUTTING GAS @ @ WIPER GAS 4 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 22252 tID 2099 645 a 1974 4162.8 CONNECTION GAS HIGH Ream Gas:65,25 ETHANE(C-2) @ a AVG PROPANE(C-3) / a CURRENT BUTANE(C-4) @ @Z CURRENT BACKGROUND/AVG 6/22 PENTANE(C-5) tg IP HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY Wash down from 1454'to 1520'.Drill(rotating and sliding)from 1520'to 2515'.Circulate bottoms up and start pumping around sweep.Pump sweep to surface and continue to circulate,clean SUMMARY and condition hole.Cease pumping and begin pulling out of hole on wiper trip to conductor.Pull out of hole from 2515 to 1981'.Break circulation and backream out of hole from 1961'to 1898'. Continue pulling out of hole from 1898'to 1646'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:585 REPORT BY Craig Silva Marathon Oil Company U F O CH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Rowland Lawson/Grant Pribilski DATE Jun 11,2010 DEPTH 2515 PRESENT OPERATION Running in hole with 9 5/8"surface casing TIME 24:00 YESTERDAY 2515 24 HOUR FOOTAGE 0 CASING INFORMATION 20"(81117' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2462 81.16 03722 1412.45 2515(Projected) 81.18 03722 1420.60 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1RR 12.25 HCC MXL-1 5159488 3x18 1x16cj 336 2515 2179 23.00 1-1-WT-A-E-1-ER-TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ (f4 FT/HR SURFACE TORQUE @ I AMPS WEIGHT ON BIT (a a KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ flp PSI DRILLING MUD REPORT DEPTH 2515/1421 TVD MW 9.4 VIS 50 PV 15 YP 18 FL 7.2 Gels 8/13/14 CL- 400 FC 2 SOL 7.0 SD 0.33 OIL 3/91 MBL 17.5 pH 8.5 Ca* 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 382 (ga 2515(WG) 3 (81 2515(Last circ) N/A TRIP GAS CUTTING GAS @ @ WIPER GAS 377 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) a a CONNECTION GAS HIGH ETHANE(C-2) 6 (81 AVG PROPANE(C-3) (f4 (fl CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 5/5(Last circulation) PENTANE(C-5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue pulling out of hole(SLM)from 1646'to 109'(inside conductor).Service rig and topdrive.Replace bad u-joint on#2 denison drive line.Set and check crown-o-matic.Run back in hole from 109'to 2405'.Wash down from 2405'to 2515'.Circulate bottoms up and record 377 units of wiper gas.Pump around Hi-Vis nut plug sweep.Continue to circulate clean and condition hole.Mix and pump pill with 2.5%LoTorq added,and spot in annulus.Check for flow.Pull out of hole(with 5"drill pipe)from 2515'to top of HWDP at 824'.Continue pulling to 169',standing back 5"HWDP and jars.Pull,break and lay down directional tools(crossover,CSDPs,MV/D,string stabilizer,pony CSDP,motor,bit).Inspect and grade bit.Lay down and clear handling tools.Clean rig floor.Pull wear bushing.Close blind rams.Change out upper variable pipe rams with 9 5/8"casing rams.Pick up,make up and install test joint.Rig up test equipment.Test BOP to 250psi Low/3000psi High.Rig DAILY down test equipment.Pull and lay down test joint.Close annulus valve.Drift BOP with landing joint and hanger.Mark elevation on landing joint(using single joint elevator).Move break-out tongs to ACTIVITY driller's side.Install correct tong head.Remove elevators and short bails.Change out double kelly valve.Install and make up Weathertont's Lafleur fill-up tool.Install long bails and pickup line.Install SUMMARY casing elevators.Move torque tube back in derrick to provide clearance for casing running equipment.Rig up and test stabbing board.Rig up Weatherford casing tongs.Remove rotary bushings.Rig Weatherford casing spider slips.Make up EZ-tum valve onto casing swage to act as a safety valve,and then function test and record in IADC.Stage centralizers and lock rings on rig floor.Pre-clean the casing threads on the 9 5/8"shoe track joints.Tie one tugger line back in the demck for picking up pipe,and the second tugger line back for hanging casing tongs.Hold pre-job meeting with all hands on procedures and safety for running surface casing string.Run in hole with 9 5/8"casing as per Marathon program.Pick up and make up shoe track(shoe joint,casing joint,float collar, casing joint)and run in hole to 126'Oust outside of conductor).Clean and Bakerlok casing threads on each successive shoe track joint during make up.Check float equipment.Continue running 9 5/8"casing in hole from 126'to 2257'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2675 RW:585 REPORT BY Craig Silva Marathon Oil Company CI EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Rowland Lawson/Grant Pribilski DATE Jun 12,2010 DEPTH 2515 PRESENT OPERATION Nippling up BOPS TIME 24:00 YESTERDAY 2515 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2494' 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 2515/1421 ND MW 9.5 VIS 45 PV 14 YP 11 FL 7.8 Gels 3/5/5 CL- 400 FC 1 SOL 7.5 SD 0.5 OIL 2/91 MBL 17.5 pH 8.0 Can 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 52 @ 2494(TG) 1 @ 2494(Displacing) 2(Displacing) TRIP GAS 52 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 from 2257'to 2452'.Wash down last joint and land casing at 2494'.Circulate bottoms up with Lafleur fill-up tool.Record 52 units of trip gas.Rig down and load off all of Weatherford's casing running equipment(power tongs,elevators,spider,slips).Shut down pumps.Rig down and load off Lafleur tool.Re-set tugger lines.Finish rigging up and connecting cementing lines and install BJ cementing head with top and bottom plugs pm-installed.Remove and lay down moushole.Continue to circulate and condition mud through cementing head(13956 strokes total,643 bbls).Hold pre-job meeting with BJ on procedures and safety for cement job.Switch to BJ pumping unit.Pump water ahead to prime cementing lines.Drop bottom plug.Test lines to 2500psi.Bleed off pressure.Mix and pump 20 bbls of Mud Clean II spacer,then batch up and pump 290.00 bbls of 11.8ppg cement slurry(with 616 sacks of Type1 LW-6 cement to 168.12 bbls mix water plus chemical additives for 2.64 cu 9/sack yield).Drop top plug.Pump 5 bbls water to kick out the plug.Switch over to rig pumps.Displace cement with 179 bbls of 9.5ppg mud(pre-treated DAILY with Bicarb and Desco).Add retardant to mud retums when nearing end of displacement.Total displacement is 184 bbls.Bump plug with 1000psi over displacement pressure.Bleed off.Check floats. ACTIVITY Cement in place.Begin wait on cement.Flush stack and mud lines.Clear and clean rig floor.Rig up rig tongs and pipe spinner.Pump out mud to trucks and begin hauling off.Clean out cellar.Lock SUMMARY out-tag out pits to clean.Remove tie-down chains and diverter line section.Washout Hydril.Wash and rig down cementing head.Rig down stabbing board.Finish hauling off mud.Begin cleaning pits.Nipple down diverter line.Rig down fill-up,bleeder and trip tank lines.Remove trip tank valve actuator.Rig down scaffolding and trip tank hydraulic lines.Prep cellar for cuts.Slack off of casing string.Remove knife valve.Make rough cut on 9 5/8"casing and lay down cut section.Remove and lay down riser.Rig down flowline.Nipple down and move aside accumulator lines.Install plug in stack.Nipple down diverter stack(Hydril and tee)and set in rack and load off.Spot new BOP stack.Remove starting head.Perform casing cuts as per Vetco-Gray.Rough cut 20"conductor.Final cut 9 5/8"casing.Dress 9 5/8"cut.Stage BOP stack.Set and install 9 5/8"slip lock connection with 11"(5M)flanged muhibowl wellhead.Make up DSA and 11"(5M)by 13 5/8"adapter spool.Secure head and successfully test slip-lock seal to 2450psi for 10 minutes.Finish cleaning pits and begin mixing new FloPro mud.Nipple up 13 5/8"(5M)BOPS,DSA and HCR.Install DSA for mud cross and then inside kill valve.Re-set torque tube.Rig down bails and rig up short bails and elevators. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:585 REPORT BY Craig Silva Marathon Oil Company El EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Rowland Lawson/Grant Pdbilski DATE Jun 13,2010 DEPTH 2515 PRESENT OPERATION Preparing to drill out shoe tract TIME 24:00 YESTERDAY 2515 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"©2494' 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 2RR 8.50 HCC MXL-1 8054215 Open 2515 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION a a FT/HR SURFACE TORQUE a a AMPS WEIGHT ON BIT a a KLBS ROTARY RPM a a RPM PUMP PRESSURE a a PSI DRILLING MUD REPORT DEPTH 2515/1421 ND MW 8.8 VIS 48 PV 12 YP 24 FL 7.0 Gels 8/11/12 CL- 22000 FC 1 SOL 3.0 SD 0 OIL 1/98 MBL 0.0 pH 8.9 Ca* 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS a a TRIP GAS CUTTING GAS a a WPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) a a CONNECTION GAS HIGH ETHANE(C-2) a a AVG PROPANE(C-3) a a CURRENT BUTANE(C-4) a a CURRENT BACKGROUND/AVG PENTANE(C-5) a a HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Clean trip tank.Continue mixing and building new Flo-Pro mud system.Continue nippling up 13 5/8"(shi)BOP stack.Hammer up DSA and spacer spool.Install choke hose,choke hard line with adaptor spool,kill line,and kill and check valves.Install lower pipe rams and VBR5 in stack.Rig up accumulator lines.Rack,stack,boll up and hammer up mud cross and single gate to the double gate and annular preventer.Remove annular plug.Install annular quick connects.Nipple riser and flow line adaptor.Install drip pan.Chain up tumbuckles to stack.Install flow,fill-up,bleeder and trip DAILY lines.Install trip tank valve and actuator.Continue mixing new mud.Pickup BPA and rig up hard line.Function test BOPs.Test gas alarm system.Make up and run in test joint assembly.Set test ACTIVITY plug.Rig up testing equipment.Test all BOPE(annular,upper and lower pipe rams,upper and lower topdnve kellycock,blind rams,check valve,inside and outside kill line check valve systems, SUMMARY NCR,manual choke valve,5"floor and dad valves and CMV5 1-12)to 250psi Low/2000psi High for 5 minutes.Perform accumulator drawdown test.Rig down testing equipment.Pull test plug.Set wear bushing.Run in lockdowns.Change elevator inserts.Chain down mousehole.Pick up,make up,run in hole,and then pull out standing back,strapping and drifting 40-joint batch(20 stands)of 5"S-135 drill pipe.Test 9 5/8"casing to 1500psi for 30 minutes.Pick up,make up and run in hole clean out assembly(8 1/2"bit,6 3/4"motor,2 NMCSDP5,crossover,HVMDP,jars).Conduct BOP drill/training exercise.Pick up,make up,run in hole,and then pull out standing back,strapping and drifting 54-joint batch(27 stands)of 5"S-135 drill pipe. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:585 REPORT BY Craig Silva Marathon Oil Company El EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Rowland Lawson/Grant Pribilski DATE Jun 14,2010 DEPTH 2895 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 2515 24 HOUR FOOTAGE 180 CASING INFORMATION 9 5/8"@ 2494' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2482 81.18 037.13 1412.45 SURVEY DATA 2545 80.78 036.70 1425.48 2606 79.86 036.66 1435.74 2668 79.75 036.22 1448.71 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2RR 8.50 HCC MXL-1 6052415 Open 2515 2535 20 0.40 1-2-WT-G-E-1-ER-BHA 3 8.50 HCD 605Z 7128879 7x12 2535 160 225 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 101.5 0 2530. 14.8 g 2536 752 77.4 FT/HR SURFACE TORQUE 7400 @ 2590 4141 @ 2669 5782.9 6270.2 AMPS WEIGHT ON BIT 23 (B 2662 4 @ 2647 11.2 9.0 KLBS ROTARY RPM 61 lift 2544 47 @ 2695 53.4 47.9 RPM PUMP PRESSURE 1014 0;3 2693 398 @ 2516 8732 997.7 PSI DRILLING MUD REPORT DEPTH 2600/1433 ND MW 8.8 VIS 55 PV 12 YP 22 FL 7.0 Gels 11/13/14 CL- 23500 FC 1 SOL 2.5 SD Tr OIL 1/97 MBL 0.0 pH 8.9 Ca* 200 CCI MD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 47 (g 2680 1 @ 2536 14.1 TRIP GAS CUTTING GAS (dj (81 WIPER GAS 4 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 9598 @ 2680 209 (d 2536 2820.5 CONNECTION GAS HIGH ETHANE(C-2) @ (tD AVG PROPANE(C-3) (8j (8; CURRENT BUTANE(C-4) (8 CURRENT BACKGROUND/AVG 4/25 PENTANE(C-5) (li3 igf HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand,Sandstone,Tuffaceous Sandstone,Conglomerate.Minor Tuffaceous Claystone,Coal,Tuffaceous Sihstone,Non-differeniated Shale. PRESENT LITHOLOGY SAND TUFFACEOUS SANDSTONE Run dean-out assembly in hole to 2387'.Wash down from 2387'to top of cement at 2406'.Chill out entire shoe tract from 2406'to 2515'(cement,float equipment at 2408'-2410',cement,shoe at 2494',rathole).Drill 20'of new hole from 2515'to 2535'.Begin circulating bottoms up(1930 strokes).Cease pumping and line up to displace spud mud.Pump 20 bbls of water,and then 40 bbls of HFVis sweep ahead of the new 8.8ppg Flo-Pro mud.Continue pumping and displace the okl spud mud in the hole with the new Flo-Pro.Circulate bottoms up with cuttings samples during the DAILY displacement.Record 6 units maximum gas.Finish displacing well and cease pumping.Perform Formation Integrity Test(14221■ ,8.6ppg,460ps)to 15.Oppg EMW.Check for flow.Pull out of hole ACTIVITY with clean-out assembly.Break and lay down motor and bit.Rig up bypass actuator and sensor on standpipe.Pick up,make up and run in hole rotary steerable assembly with quad-combo LWD- SUMMARY MWD tools(bit,AutoTrak motor,OnTrak stabilizer,BCPM,flex sub,ORD,CCD,SoundTrak,stabilizer,MagTrak,stabilizer,stop joint,fitter sub,NM crossover,2 NMCSDP5,steel float sub, crossover).Plug and function check connectivity and continuity of each tool and total string while running in.Load nuclear sources after checking the SoundTrak.Shallow test MWD-LWD function alter string is in hole.Continue running steerable assembly in hole with 5"HWDP and jars to 885'.Continue rest of the way in the hole picking up drill pipe.Pick up,make up,strap and run in hole 48-joint batch(27 stands)of 5"S-135 drill pipe to 2406'.Run in hole stand from derrick to 2469'.Fill pipe.Wash down from 2469'to 2535'.Program legging tools while slow reaming on way to 2532'. Calibrate block height before drilling ahead.Drill from 2535'to 2695'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML:3500 RW:585 REPORT BY Craig Silva Marathon Oil Company E1 EPOCH Ninikhik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Rowland Lawson/Grant Pribilski DATE Jun 15,2010 DEPTH 3799 PRESENT OPERATION Wiper Trip to shoe TIME 24:00 YESTERDAY 2695 24 HOUR FOOTAGE 1104 CASING INFORMATION 9 5/8"@2494' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2868 79.75 036.22 1446.71 2923 79.88 037.21 1491.95 SURVEY DATA 3241 79.87 039.11 1548.10 3494 79.85 039.87 1592.78 3747 77.00 038.81 1640.09 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.50 HCD 605Z 7128879 7x12 2535 1264 17.34 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 102.9 @ 2786 6.5 @ 3783 77.6 68.8 FT/HR SURFACE TORQUE 7811 @ 2745 3407 @ 3382 5087.5 5521.4 AMPS WEIGHT ON BIT 24 @ 3093 0.3 @ 2913 8.2 10.4 KLBS ROTARY RPM 75 @ 3732 47 @ 3454 60.2 68.7 RPM PUMP PRESSURE 1449 @ 3780 946 @ 3193 1235.0 1354.6 PSI DRILLING MUD REPORT DEPTH 3799/1652 TVD MW 92 VIS 54 PV 13 YP 27 FL 5.4 Gels 13/17/18 CL- 24000 FC 1 SOL 5.0 SD Tr OIL 3/93 MBL 2.5 pH 8.8 Ca+ 160 CCI MIND SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 69 @ 3776 4 @ 3220 27.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 13867 @ 3776 884 @ 3220 5403.0 CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 4/17 PENTANE(C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone,Tuffaceous Sandstone,Tuffaceous Claystone,Tuffaceous Siitstone,Volcanic Ash,CoaVCarbonaceous Shale.Minor Calcareous Tuff. PRESENT LITHOLOGY TUFFACEOUS CLAYSTONE TUFFACEOUS SILTSTONE SAND/SANDSTONE DAILY ACTIVITY Drill from 2695'to 3799'.Circulate bottoms up.Circulate,clean and condition hole.Pull out of hole from 3799'to 3393'.Break circulation and pump while pulling.Back ream out of hole SUMMARY from 3393'to 2469'(just inside shoe). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML:3500 RW:585 REPORT BY Craig Silva Marathon Of Company HI EPOCH CH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Brad Rasch/Grant Pribilski DATE Jun 16,2010 DEPTH 4895 PRESENT OPERATION Badueaming out of hole TIME 24:00 YESTERDAY 3799 24 HOUR FOOTAGE 1096 CASING INFORMATION 9 5/8"@ 2494' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3747 77.00 038.81 1640.09 4000 68.08 037.91 1715.72 SURVEY DATA 4254 58.60 037.55 1830.22 4507 52.73 036.73 1970.94 4760 48.94 034.70 2133.60 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.50 HCD 605Z 7128879 7x12 2535 4895 2360 31.89 In Hole LWD tool failure DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 98.6 @ 4119 9.4 @3 4851 78.6 83.3 FT/HR SURFACE TORQUE 9206 @ 4458 3965 La 4459 5415.3 6578.5 AMPS WEIGHT ON BIT 24 ig 4724 1 Ca 3977 8.3 12.2 KLBS ROTARY RPM 68 (8U 3840 33 Ia 4434 62.9 61.8 RPM PUMP PRESSURE 1647 Ia 4724 1081 (6j 4107 1399.4 1553.0 PSI DRILLING MUD REPORT DEPTH 4895/2222 TVD MW 9.3 VIS 55 PV 14 YP 27 FL 5.1 Gels 12/17/19 CL- 20000 FC 1 SOL 5.5 SD Tr OIL 3/92 MBL 3.5 pH 9.2 Ca. 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 100 @ 4659 3 Ia 3832 35.0 TRIP GAS CUTTING GAS @ @ WIPER GAS 9(at 3799) CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 20314 lIa 4659 789 (g 3832 6997.8 CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) 11Z4 @ CURRENT BACKGROUND/AVG 3/18 PENTANE(C-5) Ig Ig HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone,Tuffaceous Sifstone,Sand/Sandstone,Volcanic Ash,Tuffaceous Sandstone,Coal/Carbonaceous Shale.Minor Conglomeratic Sand,Calcareous Tuff,Non- Differentiated Claystone. PRESENT SAND/SANDSTONE CONGLOMERATIC SAND TUFFACEOUS CLAYSTONE LITHOLOGY DAILY ACTIVITY Service rig and topdrive.Grease crown.Run back in hole with drill pipe from 2469'to 3736'.Wash down from 3736'to 3799'.Drill from 3799'to 4895'.(Observe progressive AutoTmk steering SUMMARY head failure of over last 200'of drilling.Probable cause is guide blades failing to stay extended doe to pressure loss of internal hydraulics).Circulate bottoms up.Circulate,clean and cend8ion hole(for 2 bottoms up total).Pull out of hole from 4895'to 4749'.Backream and pump out of hole from 4749'to 3989'. EPOCH PERSONNEL ON BOARD 4 DAILY COST RW:3500 RW:585 REPORT BY Craig Silva Marathon Oil Company EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Brad Rasch/Grant Pdbilski DATE Jun 17,2010 DEPTH 5447 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 4895 24 HOUR FOOTAGE 552 CASING INFORMATION 9 5/8"(g 2494' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4760 48.94 034.70 2133.60 4950 45.52 03422 2261.51 SURVEY DATA 5140 41.25 034.22 2398.40 5268 37.86 034.22 2497.30 5459 37.58 034.05 2648.62 ,BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.50 HCC HCD 605Z 7128879 7x12 2535 4895 2360 31.89 0-0-NO-A-X-1-NO-BHA Change LWD tools 3RR 8.50 HCC HCD 605Z 7128879 7x12 4895 552 7.30 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 102.0 Q 4898 26.6 @ 4905 78.4 80.1 FT/HR SURFACE TORQUE 7958 © 4944 4126 eg 4900 6402.4 7033.6 AMPS WEIGHT ON BIT 53 @ 5340 1 (@ 5117 14.2 8.5 KLBS ROTARY RPM 88 @ 4898 26 (g 5323 61.0 61.8 RPM PUMP PRESSURE 1689 (g 5189 1285 9g 4905 1535.4 1551.2 PSI DRILLING MUD REPORT DEPTH 5191/2437 ND MW 9.3 VIS 53 PV 14 YP 24 FL 5.1 Gels 11/14/15 CL- 19000 FC 1 SOL 5.25 SD 0.25 OIL 4/91 MBL 4.0 pH 8.8 Ca+ 100 CCI MIND SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 71 @ 5380 3 (8j 4952 23.5 TRIP GAS 85 CUTTING GAS It @ W1PER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 14384 @ 5380 727 (g 4952 4887.6 CONNECTION GAS HIGH ETHANE(C-2) 41 91 AVG PROPANE(C-3) (1 @ CURRENT BUTANE(C-4) @ (8j CURRENT BACKGROUND/AVG 8/28 PENTANE(C-5) @ 41 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone,Tuffaceous Claystone,Tuffaceous Sillstone,Volcanic Ash,Coa9Carbonaceous Shale.Minor Calcareous Tuff,Non-Differentiated Claystone,Calcareous Tuff, Conglomeratic Sand. PRESENT SAND/SANDSTONE TUFFACEOUS CLAYSTONE NON-TUFFACEOUS SILTSTONE LITHOLOGY Backream and pump out of hole from 4749'to 3419'.Pull out of hole from 3419'to top of HWDP at 885'.Pull out of hole standing back HWDP,jars,crossovers,float sub and CSDPs from 885'to 164'.Break and lay down filler sub and MagTrak.Remove sources.Break and lay down SoundTrak.Stand back ORD-CCD-OnTrac tool combo.Plug in,link and download data from each tool set DAILY as it is being handled on the rig floor.Break and move aside bit.Lay down AutoTrak.Inspect and grade bit.Function test blind rams.Check crown-o-matic.Pick up,make up and run in hole bit, ACTIVITY Autotrak,OnTrac,and SoundTrac.Load sources.Pick up,make up and run in hole MagTrac and filler sub.Plug into each tool set and program each tool as it is being handled on dg floor.Pick up SUMMARY stand with crossovers,CSDPs and float sub and run in hole to 230'.Kelly up topdrive.Surface test MIND-LWD tools.Continue running in hole with 5"HWDP and jars to 885'.Kelly up topdrive and perform second test of MVUD-LWD assembly.Continue running in hole on 5"drill pipe from 885'to 2469'(just inside shoe).Service and lube rig.Continue running in hole from 2469'to 4876'.Break circulation and wash down from 4876'to 4895'.Record 65 units of trip gas.Drill from 4895'to 5447'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML:3500 RW:585 REPORT BY Craig Silva Marathon Oil Company Cl EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Brad Rasch DATE Jun 18,2010 DEPTH 6270 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5447 24 HOUR FOOTAGE 823 CASING INFORMATION 9 5/8"@ 2494' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5459 37.58 034.05 2648.62 5649 37.73 034.35 2799.25 SURVEY DATA 5839 37.72 034.29 2949.53 6092 37.76 034.84 3149.67 6282 37.77 034.57 3299.88 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 8.50 HCC HCD 605Z 7128879 7x12 4895 1375 20.45 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 98.8 @ 5513 2.6 @ 6129 71.5 77.4 FT/HR SURFACE TORQUE 10175 @ 6095 6211 @ 5789 7859.5 8266.9 AMPS WEIGHT ON BIT 52 (rD 6149 0 @ 6095 10.8 11.1 KLBS ROTARY RPM 68 (tD 5459 40 @ 5891 62.2 61.8 RPM PUMP PRESSURE 1766 @ 6120 1128 @ 5640 1560.4 1622.3 PSI DRILLING MUD REPORT DEPTH 6130/3180 TVD MW 9.4 VIS 56 PV 14 YP 28 FL 5.4 Gels 13/16/19 CL- 18000 FC 1 SOL 5.5 SD 0.25 OIL 3/92 MBL 4.5 pH 8.8 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 99 @ 5836 7 @ 6131 28.7 TRIP GAS 485 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 19835 © 5836 1479 @ 6131 5747.3 CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 10/52 PENTANE(C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone,Tuffaceous Claystone,Tuffaceous Sittstone,Coal/Carbonaceous Shale,Minor Volcanic Ash,Calcareous Tuff,Non-Differentiated Claystone,Tuffaceous Sandstone. PRESENT SAND/SANDSTONE TUFFACEOUS CLAYSTONE LITHOLOGY DAILY Drill from 5447'to 6017'.Circulate bottoms up.Circulate,clean and condition hole.Cease circulating,kelly down and rig up circulating head.Resume circulating and change out topdrive grabber ACTIVITY dies.Cease circulating and rig down circulating head.Pull out of hole from 6017'to 5827'.Backream and pump out of hole from 5827'to 4749'.Pull out of hole from 4749'to 4623'.(Hole tight at SUMMARY 5520',5470',5436',5383',5329',5280',5060',5023',5009',4996').Run back in hole from 4623'to 6017'(with no fill).Break circulation.Drill ahead from 6017'.Record 485 units of trip gas.Drill from 6017'to 6270'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML:3500 RW:585 REPORT BY Craig Silva Marathon Of Company tl EPOCH CH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Brad Rasch/Grant Pdbilski DATE Jun 19,2010 DEPTH 6953 PRESENT OPERATION Backreaming out of hole TIME 24:00 YESTERDAY 6270 24 HOUR FOOTAGE 683 CASING INFORMATION 9 5/8"©2494 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6282 37.77 034.57 3299.88 6408 37.75 034.88 3399.45 SURVEY DATA 6599 37.55 034.28 3550.68 6727 37.51 033.44 3652.11 6901 37.59 032.43 3790.06 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 8.50 HCC HCD 605Z 7128879 7x12 4895 6953 2058 30.40 In Hole TO of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 97.2 @ 6781 25.6 @ 6515 72.9 42.2 FT/HR SURFACE TORQUE 10483 @ 6935 7268 @ 6474 9035.6 10175.4 AMPS WEIGHT ON BIT 56 @ 6325 1 @ 6660 15.0 7.1 KLBS ROTARY RPM 68 @ 6397 54 @ 6953 62.4 54.8 RPM PUMP PRESSURE 1951 @ 6470 1281 (81 6330 1664.4 1596.8 PSI DRILLING MUD REPORT DEPTH 8953/3831 TVD MW 9.5 VIS 54 PV 16 YP 23 FL 4.9 Gels 11/14/17 CL- 19000 FC 1 SOL 6.0 SD 0.25 OIL 3/91 MBL 6.0 pH 9.6 Can 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 121 @ 6421 8 @ 6952 37.8 TRIP GAS CUTTING GAS @ @ WIPER GAS 26 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 24305 @ 6421 1658 @ 6952 7573.5 CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 8/14 PENTANE(C-5) @ @ HYDROCARBON One significant sand interval with over 100 units of gas and a fair show.Several"near shows"with over 80 gas units. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6400-6425 Sand:mostly disaggregated,fair vis For in consol pcs,relatively well sorted with 121u Max,110u Avg,94u Sd/SS:med It gry-gry,fL-cL,mod w srtd at fU-mL,ang-sbang-sbrd,equant size range close to fine upper and med lower cutoffs.Appears more massive than background thm interval,27u sbspher shape,disaggtd,fria consol,mod-g vis Por,fragile calc cmttn, most other thinly bedded sands.No obvious fining upward, before and after both mtx and gr spprtd,compostional gywke to marginal lithic arende. LITHOLOGY Major Sand/Sandstone,Tuffaceous Claystone,Tuffaceous Sittstone,Volcanic Ash,Coal/Carbonaceous Shale,Tuffaceous Sandstone,Calcareous Tuff.Minor Non-Differentiated Claystone, Conglomeratic Sand. PRESENT TUFFACEOUS SANDSTONE SAND/SANDSTONE VOLCANIC ASH CALCAREOUS TUFF LITHOLOGY Drill from 6270'to 6953'.Circulate bottoms up.Pump around 30 bbls Hi-Vis sweep.Shakers clean at retum of sweep,with no increase in cuttings.Continue to circulate,clean and condition hole DAILY for 2 bottoms up total.Check for flow.Pull out of hole from 6953'to 6551'.Break circulation.Backream and pump out of hole from 6551'to 5637'.Pull out of hole from 5637'to 5002'.Run back in ACTIVITY hole from 5002'to 6953'with no fill.Break circulation and circulate bottoms up.Record 26 units of wiper gas.Shakers clean at bottoms up.Continue to circulate,clean and condition hole for 2 SUMMARY bottoms up total.Check for flow.Pull out of hole from 8953'to 5338'.Ream and backream out from 5338'to 5320'.Pull out of hole from 5320'to 5193'.Break circulation.Backream and pump out of hole from 5193'to 4888'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML:3500 RW:585 REPORT BY Craig Silva • Marathon Oil Company HI EPOCH CH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Brad Rasch/Grant Pdbilski DATE Jun 20,2010 DEPTH 6953 PRESENT OPERATION Pulling out of hole after clean out run TIME 24:00 YESTERDAY 6953 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2494' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6901 37.59 034.43 3790.06 6953(Projection) 37.59 034.43 3831.27 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 8.50 HCC HCD 805Z 7128879 7x12 4895 6953 2058 30.40 1-1-WT-A-X-1-NO-TD TD of well 2RR1 8.50 HCC MXL-1 6054215 Open 6953 6953 0 N/A NG Clean out run DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ 481 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 6953/3831 TVD MW 9.5 VIS 55 PV 14 YP 26 FL 5.0 Gels 11/14/16 CL- 18000 FC 1 SOL 5.0 SD Tr OIL 4/92 MBL 5.5 pH 9.4 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 22 © (TG)6953 3 @ 8953(at pump shut down) 5(after TG) TRIP GAS 22 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 Backream and pump out of hole from 4686'to 2469'(inside shoe).Pull out of hole(SLM with no correction)from 2469'10 top of HWDP at 885'.Pull out of hole standing back HWDP and jars to 230'. Break and lay down all MWD-LWD tools(crossover,float sub,crossover,2 CSDPs,filter sub,MagTrak,SoundTrak,ORD-CCD,OnTrac,AutoTrak).Remove sources after laying down SoundTrac. DAILY Plug in,link-up and download recorded data from each successive LWD tool as it is being handled on the rig floor.Break,lay down,inspect and grade bit.Function blind rams and HCR.Pick up, ACTIVITY make up and run in hole slick clean-out assembly(old bit,bit sub,HWDP and jars)to 658'.Continue running in hole with 5"drill pipe from 658'to 2432'(inside shoe).Fill pipe.Slip 33'of drill line.Rig SUMMARY down Inteq's Bypass Actuator and the actuator lines and sensors.Service timer.Grease the drive lines,crown and blocks.Service top dove.Continue running in hole from 2432'to 6930'(filling pipe at 3889'and 5347'on way in).Pick up single,break circulation and wash down from 6930'to 6953'(with no fill).Circulate bottoms up.Record 22 units of trip gas.Hole cleaned up well. Continue to circulate,dean and condition hole for 3 bottoms up total.Check for flow.Break and lay down last single.Pull out of hole 5 stands from 6930'to 6613'.Kelly up and pump dry job. Continue pulling out of hole from 6613'to 1607'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:585 REPORT BY Craig Silva Marathon Oil Company EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Brad Rasch/Grant Pribilski DATE Jun 21,2010 DEPTH 6953 PRESENT OPERATION Trying to work through ledge with 4 1/2"Liner TIME 24:00 YESTERDAY 6953 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2494 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 2RR1 8.50 HCC MXL-1 6054215 Open 6953 6953 0 N/A NG Clean out run DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION (8; @ FT/HR SURFACE TORQUE (8J @ AMPS WEIGHT ON BIT © © KLBS ROTARY RPM @ (8j RPM PUMP PRESSURE @ (B3 PSI DRILLING MUD REPORT DEPTH 6953/3831 TVD MW 9.6 VIS 57 PV 15 YP 25 FL 5.1 Gels 11/14/17 CL- 17500 FC 1 SOL 6.0 SD Tr OIL 4/90 MBL 6.2 pH 9.2 Ca+ 100 CCI MIND SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 22 (rD circ at 6579 1 I filling liner while running in 10 circulating at ledge TRIP GAS 22(Max gas at 6579) CUTTING GAS @ (�4 WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) ($i CONNECTION GAS HIGH ETHANE(C-2) @ (P AVG PROPANE(C-3) t @ CURRENT BUTANE(C-4) (§ @ CURRENT BACKGROUND/AVG 8/10 PENTANE(C-5) a I HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue pulling out of hole from 1607'to top of clean out assembly 08658'.Continue pulling out of hole to surface,breaking and laying down HWDP,jars,bit sub and bit.Lay down and clear handling tools.Clean ng floor.Pull wear bushing.Close blind rams.Test variable pipe rams on 4 1/2"liner.Pick up,make up and install 4 1/2"liner test joint.Rig up test equipment.Test VBR to 250psi Low/2000psi High.Rig down test equipment.Pull and lay down test joint.Test plug pulled tight.Set wear ring.Prep to run 4 1/2"liner.Move break-out tongs to drillers side.Install correct tong head.Remove elevators and shod bails.Change out double kelly valve.Install and make up Weatherford Lafleur till-up tool.Install long bails and pick up line.Install casing elevators.Move torque tube back in demck to provide clearance for casing running equipment.Rig up and test stabbing board.Rig up Weatherford casing tongs.Remove rotary bushings.Rig up Weatherford casing spider slips.Make up EZ-tum crossover onto casing swage to act as a safety valve,and then function test and record in IADC.Stage centralizers and lock rings on rig floor.Pre-dean the casing DAILY threads on the 4 1/2"shoe track joints.Tie one tugger line back in the derrick for picking up pipe,and the second tugger line back for hanging casing tongs.Hold pm-job meeting with all hands on ACTIVITY procedures and safety for running liner string.Run in hole with 4 1/2"liner as per Marathon program.Pick up,make up and run in hole shoe track(shoe,shoe joint,casing joint,float collar,float collar SUMMARY joint,landing collar,landing collar joint)to 126'.Clean and Bakedok casing threads on each successive shoe track joint during make up.Check float equipment.Continue running 4 1/2"Hydril liner casing in hole from 166'to 2460'.Rig up to circulate.Circulate liner volume and cease pumping.Continue running 4 1/2"Hydril liner casing in hole from 2460'to 4614'.Rig up to circulate.Wash down last liner joint from 4614'to 4656'.Fill pipe and circulate bottoms up with Lafleur fill-up tool.Record 5 units of maximum gas.Shut pumps down.Change out bails and elevators.Pick up and make up hanger assembly.Change out Weatherford tongs.Torque up cementing head and pup joint and lay down.Rig down and load off all of Weatherford's casing running equipment(Lafleur fill-up tool, power tongs,elevators,spider,slips).Re-set tugger lines.Prep to run drill pipe.Make up first stand of drill pipe to crossover on hanger assembly and continue running 4 1/2"liner and hanger in hole on 5"drill pipe from 4695'.Trip in was proceeding without incident until an apparent(coal)ledge was tagged at 6579'.Unable to break through while working pipe.Break circulation and continue trying to work through ledge.Record 22 units maximum gas.Add tube to mud and briefly rotate while working pipe.Continue trying to break through ledge. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:585 REPORT BY Craig Silva Marathon Oil Company El EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Brad Rasch/Grant Pdbilski DATE Jun 22,2010 DEPTH 8953 PRESENT OPERATION Cleaning 4 1/2"hanger with polish mill TIME 24:00 YESTERDAY 6953 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2"(81 6579' 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 (8; Ia KLBS ROTARY RPM Ia RPM PUMP PRESSURE rIa Ia PSI DRILLING MUD REPORT DEPTH 6953(6579/3535 TVD) • MW 9.5 VIS 61 PV 14 YP 30 FL 6.7 Gels 9/12/14 CL- 15000 FC 1 SOL Viscosified Brine SD Tr OIL MBL 5.0 pH 10.4 Ca* 180 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 13 Ia Working pipe at 6579' 2 fp Circ out cement 4(Displacing) TRIP GAS CUTTING GAS (81 Ia WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) (Bj fa CONNECTION GAS HIGH ETHANE(C-2) Ia @ AVG PROPANE(C-3) (H1 Ia CURRENT BUTANE(C-4) (81 Ct4 CURRENT BACKGROUND/AVG N/A PENTANE(C-5) Ct4 Ia HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Unable to get past ledge at 6579'while circulating and working pipe.Decision made to cement liner in place.Continue circulating and reciprocating pipe to condition mud for cement job.Also while circulating,make up and build 100 bbls of viscosified brine in pits(using 2 ppb Flo-Vis and 3%KCL)to bump plug at displacement.Make up final connections of cementing lines.Cease pumping. Pick up and make up BJ cementing head and switch over from rig pumps to BJ cementing unit.Hold pre-job meeting with all hands on cementing safety and procedures.Pump 3.2 bbls of water ahead to fill and prime cementing lines.Pressure test lines to 4500psi.Bleed off pressure.Mix and pump 60.3 bbls of 10.Oppg Sealbond sweep-spacer,then batch up,mix and pump 324.00 bbls of 14.Oppg cement slurry(with 1086 sacks of Type1 cement to 215.88 bbls mix water plus chlorides and chemical additives for 1.71 cu ft/sack yield).Close valve to drill pipe,open up wash-up tee and pump 23.7 bbls of water to clean lines.Open back up to drill pipe and drop plug.Displace cement with 107.0 bbls of 9.5ppg viscosified brine mud.(Note wiper plug picked up at 35 bbs pumped DAILY during displacement,and at 69 bbls pumped mtum mud was diverted to slop tank).4.0 bbls of mud pumped past planned displacement.Plug did not bump.Note that retums of the viscosified brine ACTIVITY mud were very foamy.Cement in place.4 1/2"Liner Hanger set at 6579'(liner top at 1925').Perform"emergency release"from hanger.Circulate out from top of hanger.Record 60 bbls of excess SUMMARY cement at the surface.Cease pumping.Treat slop mud with retardant and begin pumping out to Vac truck for haul off.Begin wait on cement.Flush and wash out Hydril,stack,cementing head and mud lines.Rig down cementing head,wash down hose,swings and valves.Prep to lay down drill pipe.Pull out of hole laying down 5"drill pipe(60 joints,30 stands).Pull,break and lay down liner running tool assembly.Clear and clean rig floor.Pick up and make up polish mill assembly.Crossover to 5"drill pipe and run in hole to 1600'.Pull out of hole,breaking and laying down 5"drill pipe. Run in hole to 650'.Pull out of hole,breaking and laying down 5"drill pipe.Run in hole on with mill assembly on 5"drill pipe to 1590'.Perform various service work on rig while continuing to wait on cement.Empty and begin cleaning pits.Lube crown,blocks,carrier and drive lines.Repair torque cylinder for make-up tongs.Prep mud products to be loaded off location.Change out generator Raycor fitters.Finish cleaning pits.Cement set time acceptable.Continue running in hole with polish mill assembly from 1590'to 1781'.Wash down from 1781'to 1925',cleaning out cementer stringers at 1825'on way in.Tag up and polish top of hanger at 1925'.Continue circulating,cleaning and conditioning in casing bore after pulling up from top of hanger. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:585 REPORT BY Craig Silva Marathon Oil Company U EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Brad Rasch/Grant Pribilski DATE Jun 23,2010 DEPTH 6953 PRESENT OPERATION Prepping to re-space out and land hanger TIME 24:00 YESTERDAY 6953 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2"@ 6579' 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 a a FT/HR SURFACE TORQUE a a AMPS WEIGHT ON BIT a a KLBS ROTARY RPM a a RPM PUMP PRESSURE a a PSI DRILLING MUD REPORT DEPTH 6953(1905/1302 TVD) MW 8.5 VIS 20 PV YP FL Gels CL- 17000 FC SOL 3%KCL Bone SD OIL MBL pH Cat- CCI MIND SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 a 0 TRIP GAS CUTTING GAS @ a WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) a a CONNECTION GAS HIGH ETHANE(C-2) a a AVG PROPANE(C-3) a a CURRENT BUTANE(C-4) a a CURRENT BACKGROUND/AVG N/A PENTANE(C-5) a a HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish circulating above hanger after polishing the liner seal bore.Pull out of hole with 5"drill pipe from 1925'to surface.Break and lay down polish mill assembly.Clear and clean rig floor.Pickup and make up and 4 1/2"liner hanger packer with hydraulic pusher tool.Make up packer running assembly to 5"drill pipe and run in hole to top of hanger at 1925'.Tag into top of hanger and drop ball.Pump ball down with rig pumps while Gabbing all the way down into the polish bore receptacle.Seat ball and switch over to BJ pumping unit.Pressure test lines to 5000psi.Bleed off test DAILY pressure.Switch to rig pumps and pressure up full pipe string to 2400psi to set packer at 1905'.Switch back to BJ pumping unit to blow ball seat with 4850psi.Pull out of hole from 1905'to surface. ACTIVITY Break and lay down running tools for packer seal assembly.Lay down handling tools.Begin cleaning pits and building KCL 3%brine for displacing.Run in hole with 4 remaining stands of drill pipe. SUMMARY Pull out of hole breaking and laying down 5"drill pipe.Finish building KCL brine.Pull wear bushing.Set 11"by 7"spacer bushing in the lower multibowl section as per Vetco-Gray,to allow the 4 1/2" tubing hanger to sit in the upper multibowl section.Test spacer bushing pack-off to 5000psi for 10 minutes.Change out bails and elevators.Lay down rig tongs.Rig up Weatherford tubing running equipment.Rig up Pollard to run and band chemical injection line.Prep rig floor to run 4 1/2"tubing.Run 4 1/2"tubing with tie-back seal unit to top of hanger.Space out.Rig up landing joint. Displace hole with 3%KCL brine.Note first batch of brine to cover the back side of the well bore was mixed with Conqor A303 inhibitor fluid.Attempt to land tubing hanger.First landing attempt failed due to incorrect length.Reconfigure and remake pups for correct space out. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2575 RW:585 REPORT BY Craig Silva Marathon Oil Company El EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 4 REPORT FOR Brad Rasch DATE Jun 24,2010 DEPTH 6953 PRESENT OPERATION Rig down operations TIME 24:00 YESTERDAY 6953 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2"/8579' 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 g g FT/HR SURFACE TORQUE g (H1 AMPS WEIGHT ON BIT g g KLBS ROTARY RPM g (8j RPM PUMP PRESSURE g (8; PSI DRILLING MUD REPORT DEPTH Surface MW 8.5 VIS 20 PV YP FL Gels CL- 17000 FC SOL 3%KCL Brine SD OIL MBL pH Ca+ CCI MWO SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS (81 g TRIP GAS CUTTING GAS g g WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) g g CONNECTION GAS HIGH ETHANE(C-2) (8j g AVG PROPANE(C-3) g g CURRENT BUTANE(C-4) g g CURRENT BACKGROUND/AVG PENTANE(C-5) f g HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish correcting pup lengths for space out.Reband stainless steel chemical injection line tubing and then pull through hanger body slot and secure.Test injection line to 1000psi(using power spooler nipple).Re-attempt and successfully land hanger.Re-test injection line to 1000psi to verify.Test tubing hanger body seals to 5000psi for 10 minutes.Test 4 1/2"tubing to 1500psi for 15 minutes.Test contact seal at 9 5/8"casing to 4 1/2"tubing to 1500psi for 30 minutes.Break and lay down landing joint.Set Back Pressure Valve.(Keep extra length of chemical injection tubing clear DAILY of obstructions).Rig down and load off Weatherford hydraulic tongs and remaining tubing handling equipment and tools.Rig down Pollard banding and injection line running equipment.Rig down ACTIVITY sheave and power spooler.Rig down and load off pipe spinner.Pull and load off mousehole.Rig down and load off elevators and bails.Flush clean all surface lines(mud pumps 1-2-3,choke SUMMARY manifold,stack,choke and kill lines,cementing lines,Topdrive,poorboy,stand pipe manifold)with water back into pits.Begin pumping off all remaining fluids into Vac trucks for haul off.Begin cleaning pits and sump as they become empty and pump off wash water.Load off all remaining handling equipment from rig floor and clean floor.Begin placing and securing loose equipment for eventual rig move.Rig down/nipple down/uninstall drip pan,tumbuckles,fill-up line,trip tank line,Bowline,and choke and kill lines.Rig down top drive.Nipple down check and kill valves,spacer spool,BOP stack,and DSA.Load off BOP stack.Clean and inspect gas buster.Prepare,install and nipple up the tree.Remove BPV.Install Two-Way Check valve.Test void to 5000psi for 10 minutes.Test tree to 5000psi for 10 minutes.Pull TWC and reinstall BPV.Begin rig down of all Glacier No.1 rig and camp components. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2675 RW:585 Rig Down:2025 REPORT BY Craig Silva OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format.