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Home My WebLink About205-025New Plugback Esets 7/18/2024 Well Name API Number PTD Number ESet Number Date 1J-162 PB2 50-029-23360-71-00 207-080 T39224 5-21-2009 CD3-125 PB1 50-103-20632-70-00 210-189 T39225 4-15-2011 CD3-301A PB1 50-103-20543-71-00 210-017 T39226 4-13-2010 KIGUN 1 PB1 50-629-23239-70-00 205-025 T39227 9-26-2005 1J-105 PB1 50-029-23346-70-00 207-027 T39228 4-23-2009 2K-28A PB1 50-103-20385-70-00 211-133 T39229 2-6-2012 2L-306 PB1 50-103-20630-70-00 210-182 T39230 4-15-2011 3A-17AL1 PB1 50-029-22691-70-00 210-114 T39231 11-24-2010 3G-22AL2 PB1 50-103-20147-70-00 212-047 T39232 7-24-2012 3H-34L1 PB1 50-103-20643-70-00 211-162 T39233 2-28-2012 3N-16AL1 PB1 50-029-21593-73-00 210-107 T39234 11-24-2010 C-12A PB1 50-029-21373-70-00 199-091 T39235 1-17-2002 ODSN-01 PB1 50-703-20648-70-00 211-166 T39236 5-3-2012 ODST-39 PB1 50-703-20572-70-00 208-040 T39237 3-22-2012 OI06-05 PB1 50-029-23437-70-00 210-165 T39238 11-3-2011 OP17-02 PB1 50-029-23431-70-00 210-125 T39239 1-3-2011 KIGUN 1 PB1 50-629-23239-70-00 205-025 T39227 9-26-2005 • Maunder, Thomas E (DOA) From: Silfven, Laurie A (DEC} Sent: Wednesday, July 02, 2008 9:55 AM To: Maunder, Thomas E (DOA) Subject: RE: Kerr-McGee -Anadarko Two Bits and NW Milne wells Thank you, Tom! Laurie Siifven Ph: (907) 269-7540 From: Maunder, Thomas E (DOA) Sent: Wednesday, Juiy 02, 2008 8:26 AM To: Silfven, Laurie A (DEC) Cc: Gould, Greg M (DEC); 'Bob Britch'; Foerster, Catherine P (DOA) Subject: RE: Kerr-McGee -Anadarko Two Bits and NW Milne wells • Page 1 of 2 ~ aob~ o as Laurie, et al, As requested, I have competed a file review of 8 Kerr-McGee operated exploration penetrations that were drilled and plugged and abandoned nominally in 2Q 2004 and 2Q 2005. Total work accomplished was 6 grass-roots weNs and 2 redrills as listed below. Permit # Well Name 204-018 Nikaitchuq #1 204-038 Nikaitchuq #2 ~ 205-02 2o4-26a 205-001 205-039 205-056 Tuvaag State #1 Kigun #1 (redrill of Tuvaaq State #1) Nikaitchuq #4 Nikaitchuq #3 Ataruq #2 Ataruq #2A (redrill of Ataruq #2) ~'' JUi ~ ~ 2DD$ Based on the file review, it is my opinion that these wells were plugged and abandoned according to the requirements of 20 AAC 25.1.12 (plugging-all wells), 20 AAC 25.120 (well abandonment marker, onshore well Ataruq 2/2A), 20 AAC 25170 (onshore location clearance, Ataruq 2/2A) and 20 AAC 25.172 (offshore location clearance, remaining wells). Please contact me if further information is needed. Tom Maunder, PE Sr. Petroleum Engineer AOGCG From: Silfven, Laurie A (DEC) Sent: Thursday, June 26, 2008 11:38 AM To: Maunder, Thomas E (DOA) Cc: Gould, Greg M (DEC); Bob Britch Subject: Kerr-McGee -Anadarko Two Bits and NW Milne wells Hi Tom, We received a request from Anadarko to rescind two Anadarko (formerly Kerr-McGee) exploration oil discharge prevention and contingency plans. The contingency plans are for Two Bits (Ataruq) and Northwest Milne Point (Nikaitchuq). In order to do this, we need AOGCC verification that the wells were properly abandoned. Bob Britch, consultant for Anadarko, let me know that an a-mail request to you would be sufficient. According to 7/2/2008 • Page 2 of 2 Bob, the drilling performed for the two plans essentially covered two exploration wells from the Two Bits (Ataruq) Prospect and six exploration wells from the NW Milne Point (Nikaitchuq} Prospect. At your convenience, please provide confirmation that all wells were properly plugged and abandoned. Thanks! Laurie Laurie Silfven Alaska Department of Environmental Conservation Exploration, Production & Refineries Section 555 Cordova Street Anchorage, AK 99501 Ph: (907) 269-7540 Fax: (907) 269-7687 E-mail: laurie. silfven@alaska_ gov 7/2/2008 SD ~~ DATA SUBMITTAL COMPLIANCE REPORT 4/11/2007 Permit to Drill 2050250 Well Name/No. KIGUN 1 Operator KERR-MCGEE OIL & GAS CORP API No. 50-629-23239-01-00 MD 9098 Completion Date 3/30/2005 Completion Status P&A TVD 9001 __.._"_""____"~m__'.___·.___ REQUIRED INFORMATION Mud Log Yes Samples No ~_._----_._-_._"._..._---------_._"_._-,- -,---_.~------ DATA INFORMATION Types Electric or Other Logs Run: Well Log Information: Logl Electr Data Digital Dataset Type Med/Frmt Number Name Icróg ---- 13114 Mud Log J/-Og 13114 Mud Log ~. 13114 Mud Log ~Og 13114 Mud Log I 1 ~ 13114 Report: Final Well R ..J4i 13114 See Notes ...-tðg 13114 I nd uction/Resistivity ~g Mud Log Log Log Run Scale Media No 5 Col 1-6 2 Col 1-6 2 Col 1-6 5 Col 1-6 2 Col Blu 5 Col 1-6 2 Col 1-6 2 Col 1-6 5 Col 1-6 ,,~ ( .'LJ '- ~ t"~ c..~ Mud Log Mud Log Mud Log u(¡)Í )(pt" Report: Final Well R See Notes ~ D Asc Directional Survey pt Directional Survey ø D Asc Directional Survey I Current Status P&A UIC N Directional Survey Yes ----- (data taken from Logs Portion of Master Well Data Maint Interval OHI Start Stop CH Received Comments 1913 9098 Open 4/27/2005 TVD COMBINATION MUDLOG 1913 9098 Open 4/27/2005 TVD COMBINATION MUDLOG 1913 9098 Open 4/27/2005 MD COMBINATION MUDLOG 1913 9098 Open 4/27/2005 MD COMBINATION MUDLOG 0 0 4/27/2005 END OF WELL REPORT 0 9100 4/27/2005 ENGINEERING LOG 0 9000 4/27/2005 GR/EWR 1913 9098 Open 5/23/2005 TVD COMBINATION MUDLOG 1913 9098 Open 5/23/2005 TVD COMBINATION MUDLOG 1913 9098 Open 5/23/2005 MD COMBINATION MUDLOG 1913 9098 Open 5/23/2005 MD COMBINATION MUDLOG 0 0 5/23/2005 END OF WELL REPORT 0 0 Open 8/29/2005 CoreLab Routine Core Analysis Data Final Report w/CD 2499 9098 Open 9/26/2005 IIFR 2499 9098 Open 9/26/2005 IIFR 1837 2794 Open 9/26/2005 PB 1 IIFR e - DATA SUBMITTAL COMPLIANCE REPORT 4/11/2007 Permit to Drill 2050250 Well Name/No. KIGUN 1 ~ 9098 TVD 9001 Completion Date 3/30/2005 I nd uction/Resistivity ~ I nd uction/Resistivity ¡£ C Las 13299 I nd u ction/Resistivity ¿ Induction/Resistivity ..J49 I nd uction/Resistivity i~ Porosity ¥pt ~ 13356 Report: Final Well R Vc 13148 Report: Final Well R Well Cores/Samples Information: Name Core Chips Interval Start Stop ADDITIONAL INFORMATION Well Cored? 0 N Chips Received? Y / N Analysis ~/ N Received? Comments: Compliance Reviewed By: --~ Operator KERR-MCGEE OIL & GAS CORP API No. 50-629-23239-01-00 Completion Status P&A Current Status P&A UIC N -.--. 25 Col 1913 2695 Open 9/26/2005 PB 1 ROP DGR EWR 5 Col 1913 2794 Open 9/26/2005 PB 1 ROP DGR EWR Conductivity GOM Format 1913 9098 Open 9/26/2005 ROP DGR EWR (Final Hole) ROP DGR EWR (PB 1) plus Log Graphics 25 Col 1913 9098 Open 9/26/2005 ROP DGR EWR 5 Col 1913 9098 Open 9/26/2005 ROP DGR EWR GOM e Format 25 Col 1913 9098 Open 9/26/2005 DGR CTN SLD 0 0 Open 1 0/20/2005 Directional Drilling & MWD/LWD Services 0 0 Open PB 1 End of Well Rpt CD Sample Set Sent Received Number Comments Cores and/or Samples are required to be - -~---, I submitted. This record automatically created I from Permit to Drill Module on: 3/7/2005. I I Daily History Received? ~: Formation Tops e _.~,.~- Date: >1) A.y1 ~ 7 . . WELL LOG TRANSMITTAL To: Alaska Oil & Gas Conservation Commission 333 West ih Avenue, Suite 100 Anchorage, AK 99501 Attn: Librarian September 26, 2005 RE: MWD Fonnation Evaluation Logs - Kerr-McGee Kigun#l BP01 tK-MW-0003523133 API #: 50-629-23239-00-70 r~V'J \Lt L Ki2un #1 BP01: "MD DGR/RESLogs: , TVD DGR I RES Logs: 5" MD DGR I RES Logs: 5" TVD DGR I RES Logs: ~' MD DGR I RES (GOM Fonnat) Logs: '2" MD Neutron & Density Logs: y TVD Neutron & Density Logs: V 5" MD Neutron & Density Logs: '5" TVD Neutron & Density Logs: CD ROM Disk with Graphic hnages wi LAS & L WD-DLIS data of above logs: 1 Color Print 1 Color Print 1 Color Print 1 Color Print 1 Color Print 1 Color Print 1 Color Print 1 Color Print 1 Color Print 1 CD Rom / ~ J..-q c¡ PLEASE ACKNOWLEDGE RECEIPT BY SIGNING AND RETURNING THE ATTACHED COPIES OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Sperry Drilling Services Attn: Rob Kalish 6900 Arctic Blvd. Anchorage, Alaska 99518 Fax: (907) 273-3535 Date: ~6¥Mr Signoo: 1/J 0JJt ÀG 'J'',.- () ~ ,- . . WELL LOG TRANSMITTAL To: Alaska Oil & Gas Conservation Commission 333 West ih Avenue, Suite 100 Anchorage, AK 99501 Attn: Librarian RE:MWD Formation Evaluation Logs - Kerr-McGee Kigun#l \ API #: 50-629-23239-01-00 f~- September 26, 2005 AK-MW-0003523133 Ki2un #1: ú!' MD DGR I RES Logs: l..T TVD DGR I RES Logs: 0" MD DGR I RES Logs: ~' TVD DGR I RES Logs: / MD DGR I RES (GOM Format) Logs: CD ROM Disk with Graphic Images wi LAS & L WD-DLIS data of above logs: 1 Color Print 1 Color Print 1 Color Print 1 Color Print 1 Color Print 1 CD Rom I '),).. q 0/ PLEASE ACKNOWLEDGE RECEIPT BY SIGNING AND RETURNING THE ATTACHED COPIES OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Sperry Drilling Services Attn: Rob Kalish 6900 Arctic Blvd. Anchorage, Alaska 99518 Fax: (907) 273-3535 Date:À Cc ~Ó~- û)JJ Signed: ~(j ~'-- () ~ S- . . 21-Sep-05 Alaska Oil & Gas Conservation Commission 333 w. ih Ave., Suite 100 Anchorage, AK 99510 DEFINITIVE Re: Distribution of Survey Data for Kigun #1 BP01 f:V'~l \~ \~ Attn: Librarian: Enclosed are 1 survey hard copy(s) and a disk with the *.NO, *.PTT, and *.PDF files. Tie-on Window / Kickoff Projected Survey: 2,429.99 ' MD 2,433.00 'MD (if applicable) 9,098.00 I MD PLEASE ACKNOWLEDGE RECEIPT BY SENDING AN EMAIL TO CARL.ULRICH@HALLlBURTON.COM OR SIGNING AND RETURNING A COPY OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Sperry-Sun Drilling Services Attn: Carl Ulrich 6900 Arctic Blvd. Anchorage, AK 99518 .~ /J I A l J I (J. ~~~e?G ~ \ , ~ ()µy- Please call me at 273-3545 if you have any questions or concerns. Regards, Carl Ulrich Survey Manager ::L.~ ~~ - ~ .."- \- . . 21-Sep-05 Alaska Oil & Gas Conservation Commission 333 w. ih Ave., Suite 100 Anchorage, AK 99510 DEFINITIVE Re: Distribution of Survey Data for Kigun #1 f fJ \ Attn: Librarian: Enclosed are 1 survey hard copy(s) and a disk with the *.NO, *.PTT, and *.PDF files. Tie-on Window / Kickoff Projected Survey: 1,837.51 'MD 1,913.00 'MD (if applicable) 2,794.00 I MD PLEASE ACKNOWLEDGE RECEIPT BY SENDING AN EMAIL TO CARL.ULRICH@HALLlBURTON.COM OR SIGNING AND RETURNING A COPY OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Sperry-Sun Drilling Services Attn: Carl Ulrich 6900 Arctic Blvd. Anchorage, AK 99518 dh Date ;tG ~ ,- Signed Please call me at 273-3545 if you have any questions or concerns. Regards, Carl Ulrich Survey Manager ~/~ ~vG?vC . . Core Laboratories Material Shipment Record I:Dre Lab R£SERVOm Ol'TDHZATIDH RRP File Number: DATE: HOU-050228 24-Aug-05 SHIP TO: Alaska Oil & Gas Conservative Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 A TTN: Librarian COMPANY: Kerr-McGee Oil & Gas Corporation WELL: Kigun 01 LOCATION: North Slope, Alaska FIELD: NW Milne Point MATERIAL TYPE: Report (1 copy); CD-ROM (1) INVENTORY: Routine Core Analysis Final Report SHIPPED VIA: US Mail WA YBILL NO: NA PLEASE SIGN TO ACKNOWLEDGE RECEIPT OF ABOVE SHIPMENT AND RETURN TO: INIT. CDH I RP ONE COPY TO: CORE LABORATORIES, LP 6316 Windfern Road Houston, Texas 77040 ATTN: Charity Hunter PHONE: 713-328-2565 FAX: 713-328-2567 pl/ /J I! II 1 MATERIAL RECEIVED BY: /~i Ult¿~( I I . PRINT NAME: \~Î:> \f\{ ;" v ~ ûk l~ DATE: 3 I 4; ~f"fJ- Å ò j- - 0) r F,'!t STATE OF ALASKA HECEIVED ALASIIL AND GAS CONSERVATION COMMIIN M - 1a W~I s~ELL o~O~àE!l'd [] O~a~o~2[]OM~~;y~gN w~J',~,:~~:f.?,.~mmi~r 20AAC 25.105 20AAC 25.110 Development [}nChora!ftPloratOryL!j , No. of Completions Other Service D Stratigraphic TestD /) 5. Date Comp., sus~f:"- 12.~_ermit to Drill Number: ~ Kerr McGee Oil & Gas Corporation Aband.: . ~ ~ .Ii; "~205-025 . - ~o.s: n 77 6. Date Spudded.3--It.óÞ· 13. API Number. ~ ~ ,,,.S; 50-629-23239-01 7. Date TD Reached: 14. Well Name and Number: 3/24/05 " Kigun #1 8. KB Elevation (ft): 15. Field/Pool(s): 35 ft 9. Plug Back Depth(MD+ TVD): 5 feet below mud line 10. Total Depth (MD + TVD): 16. Property Designation: / 9,098' MD / 9,001' TVD" ADL 0355024 11. Depth Where SSSV Set: 17. Land Use Permit: n/a 19. Water Depth, if Offshore: o feet MSL Surface hole: N/A; Intermediate Hole: GR-RES LWD; E-Line Quad-Combo & OBMllog; Production Hole: GR-RES LWD & PWD. No E-Line. Mud Log: from 1913' to TMD. CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD TOP BOTTOM TOP BOTTOM HOLE SIZE X-56 33' MD 113' MD 33' TVD 113' TVD L-80 33' MD 2991' MD 33' TVD 2730' TVD 13-3/8" Whipstock set on EZSV. T/Window at 1913' MD /1848' TVD. L-80 33' MD 4545' MD 33' TVD 4448' TVD GINJD WINJD 2. Operator Name: WDSPL D 3. Address: 3900 C Street, Suite 744, Anchorage, AK 99503 4a. Location of Well (Governmental Section): Surface: 500' FEL & 1724' FSL, Sec 24, T14N, R8E, UM Top of Productive Horizon: Sag River: 8360' MD / 8263' TVD 1077' FEL & 2038' FSL, Sec 24, T14N, R8E, UM Total Depth: 1073' FEL & 2056' FSL, Sec 24, T14N, R8E, UM 4b. Location of Well (State Base Plane Coordinates): Surface: x- 507,331 E ' y- 6,050,899 N / TPI: x- 506,748E y- 6,051,199N Total Depth: x- 506,758 E y- 6,051,230 N 18. Directional Survey: Yes 0 No D Zone- 4 Zone- 4 Zone- 4 21. Logs Run: 22. CASING WT. PER FT. 133# 68# GRADE 20" 13-3/8" 9-5/8" 47# 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): none 26. Date First Production: Drive Pipe 16" 12-1/4" 24. SIZE n/a Exploration .----- 20. Thickness of Permafrost: 330' MD / 277' TVD í/w~~ ¡Çj/3' mþ le.:¡g 'rvr.:. "l> .Ç:1·",,; CEMENTING RECORD AMOUNT PULLED n/a 444 sx Permafrost L (328 bbl) & 350 sx G (72 bbl) 261 sx Permafrost L (193 bbl) & 200 sx G (41 bbl) 13' 18' TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED n/a PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): none Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Test Period ..... Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Press. 24-Hour Rate ..... 27. CORE DATA Choke Size: IGaS-Oil Ratio: Oil Gravity - API (corr): Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". ~corif~~_;~nCtq RBDMs 8FL iíA· , :l !3;;~D~ IVI Y 0 4 2005 t V£¡:¡¡;:Fi) ~ .:..'~:::::' Cored Schrader Bluff "OA" sand 3766' to 3826' (60'). ¡ Form 10-407 Revised 12/2003 CONTINUED ON REVERSE ORiGINAL NAME GEOLOGIC MARKEe TVD 29. FORMATION TESTS Include and briefly S.rize test results. List intervals tested, and attach detailed supporting _ s necessary. If no tests were conducted, state "None". 28. Top Permafrost Base Permafrost Ugnu Schrader Bluff Schrader Bluff "OA" sd Colville HRZ Kuparuk LCU Nuiqsit Lower Kingak Sag River Shublik Ivishak 1425' 1755' 2929' 3491' 3777' 3824' 6508' 6782' 6815' 6878' 6949' 8360' 8477' 8788' 1423' 1700' 2832' 3394' 3680' 3727' 6411' 6685' 6718' 6781' 6852' 8263' 8380' 8691' Schrader Bluff "OA" Sand 3805' - 3806' MD: Cased Hole MDT test / oil sample RECEIVED MAY 0 2 2005 Alaska Oil & Gas Cons. Commission Anchorage 30. List of Attachments: Final Wellbore Diagram, Final Survey Report, Operations Daily Summarry 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: S. Coyner, 339-6269 .5C- Printed Name: Stuart Boggan Signature:~&?¿r Title: Drilling Manager / Kerr McGee Oil & Gas Corp. Phone: (907)339-6370 Date: 4/29/2005 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. 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: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 Onl~¡~\11\ L \\ 0 I II,,, f~ . HALLIBURTON . RECEIVE.:D MAY 0 2 2005 Alaska Oil & Ga~o rn.."..," Kerr-McGRe . or~bramJnISSIO¡¡ w esteJIf ~Mf Slope, Kerr McGee Survey Report for West Milne Point - Kigun #1 Comments Measured Depth (ft) 1837.51 2429.99 2433.00 4509.98 4606.32 25 March, 2005 . 5:55 Station Coordinates TVD Northings Eastings (ft) (ft) (ft) 1777.42 2337.65 2340.58 4413.30 4509.63 Comment 170.10 N 277.90 N 278.41 N 289.38 N 289.48 N 347.91 W 503.17 W 503.65 W 537.48 W 538.11 W Tie on from Tuvaaq State # 1 well Tie on from Kigun # 1 Top of cement starting depth for Kigun Interpolated az. magnetic interference from 9-5/8 csg. Interpolated az. magnetic interference from 9-5/8 csg. Page 5 of 5 DriffQuest 3.03.06.008 O· · R.·) I ~ If\I [\ f . \..)ì'\ì:"t.- Kigun #1 p &A FORMATIONS DEPTH (DF) HOLE CASING & MARKERS EQUJ¡:>MENT MD l TV!) SIZE CEMENTING Top of Plug #5 40' 40' 20 inch #5 129.33 #, X-56 .Cement Plug #5 Welded / Driven 60 sx Permafrost C Bottom of Plug #5 135' 135' 10.3 bbls Surface CSQ 15.6#, 0.95 cf/sx 13-3/8" 68 Ib/ft L-80, BTC In!. Yield 5020 psi Collaspse 2260 psi Cemented w/ 444 sx Permafrost l Base Permafrost 1,755' 350 sx Class G Down Squee¡¡:ed CementPlu¡:¡ #8 928 sx Class G 190 bbls 15.8#, 1.15 cf/sx Intermediate 9-5/8" 40 Ibs/ft L-80, BTC-M In!. Yield 5750 psi T/Ugnu 2,929' 2832 10.0 ppg Water Collaspse 3090 psi Based Mud Cemented w/ 261 sx Permafrost l Schrader Bluff 3,491 ' 3,394' 200 sx Class G Top of Plug #4 3,656' Down SQueezed EZSV 3,716' Cement Plua#4 OA Sand 3,777' 3,680' 54 sx Class G 3805' to 3806' MD Cased Hole MDT 11 bbls Colville Mudstones 3,824' 3,727' 15.8#,1.15 cf.sx Top of Plug #7 4,340' EZSV 4,400' Down Sauee¡¡:ed Cement Pluq#3 98 sx Class G 4,645' 20 bbls 15.8#, 1.15 cf.sx 10.7 ppg Mud Top of Plug #1 6,338' HRZ 6,508' 6,411' Kuparuk 6,782' 6,685' CemenlPluqs: Tagged lCU 6,815' 6,718' #1-&#2- Nuiqsut Sd 6,878' 6,781' #2 1000 ft each Lower Kingak 6,949' 6,852' 410 sx Class G Bottom of Plug #2 7,385' Premium Cement 84 bbls each Top of Plug #1 8,098' 15.8#, 1.15 cf/sx Sag River 3d 8,360' 8,263' Shublik 8,477' 8,380' #1 Ivishak 8,788' 8,691' . . Legal Well Name: KIGUN #1 Common Well Name: Spud Date: 1/30/2005 Event Name: DRILLING Start: 3/9/2005 End: 3/30/2005 Contractor Name: NABORS ALASKA, INC. Rig Release: 3/30/2005 Group: Rig Name: NABORS Rig Number: 27E I Date From - To Hòurs Code SUb Phase l:>êsçriþtic:>nQf ·Ç>peråti9r1s Code 3/10/2005 06:00 - 19:00 13.00 24 B DRLPRO PHASE 3 CONDITIONS DO NOT ALLOW MEDICAL EVACUATION IN THE EVENT OF AN EMERGENCY, THEREFORE OPERATIONS HAVE BEEN SHUTDOWN. 19:00 - 00:00 5.00 49 B DRLPRO PU BHA/WHIPSTOCK, CHANGE OUT BOTTOM RAMS TO 5" AND TEST TO 5000 LBS. 00:00 - 02:30 2.50 06 D DRLPRO PU FLOAT SUB AND 12 STEEL DC'S 02:30 - 03:30 1.00 06 D DRLPRO TRIP IN WITH WHIPSTOCK & DRILL PIPE TO 1944' 03:30 - 04:00 0.50 06 D DRLPRO INSTALLED TOP DRIVE BLOWER HOSE 04:00 - 06:00 2.00 09 DRLPRO BREAK CIRUCLATION & ORIENT WHIPSTOCK TO 59 DEGREES RIGHT OF HIGH SIDE @ 1901', TAGGED EZ DRILL @ 1945' SET WHIPSTOCK & SHEAR OFF, MILL WINDOW @ 1913' TOW. PUMPED 1900 GAL @ 721 GPM. 3/11/2005 06:00 - 12:00 6.00 02 A DRLPRO MILLED 20' WINDOW IN WHIPSTOCK BEGINNING @ 1913'. 12:00 - 13:00 1.00 02 A DRLPRO PJSM, DRILLED AHEAD 20' WITH MILL BIT AND CIRCULATED. 13:00 - 14:30 1.50 26 DRLPRO PERFORMED LOT, EMW = 14.5 PPG 14:30 - 15:00 0.50 06 D DRLPRO POOH TO DRILL COLLARS 15:00 - 18:30 3.50 06 D DRLPRO UD WHIPSTOCK AND ALL ASSOCIATED EQUIPTMENT 18:30 -19:30 1.00 26 DRLPRO PICK UP WASH DOWN TOOL AND WASH STACK OF ALL METAL CUTTINGS FROM WHIPSTOCK 19:30 - 21 :30 2.00 06 0 DRLPRO PICK UP BHA #2, ORIENT TO MWD, PLUG INTO MWD AND PROGRAM 21:30 - 23:45 2.25 06 D DRLPRO PICK UP JARS, HWDP AND DRILL PIPE. RIH TO 1839' MD. 23:45 - 00:30 0.75 06 DRLPRO ORIENT AND SLIDE THROUGH WHIPSTOCK. NO PROBLEM GOING THROUGH WHIPSTOCK, VERY CLEAN. PJSM 00:30 - 03:30 3.00 02 A DRLPRO DRILL AHEAD AS/PER DIRECTIONAQL PLAN, AT PRESENT, /' FOOTAGE SLID = 160', FOOTAGE ROTATED = 125', AVERAGE ROP = 186' FT PER/HR, GPM = 660, TORQUE = 5K, 03:30 - 06:00 2.50 02 DRLPRO DRILL AHEAD ASIPER DIRECTIONAL PLAN. TMD 2496.59' TVD 2409.33 3/12/2005 06:00 - 08:30 2.50 02 A DRLPRO DRILLED AHEAD F/2496' T/2794' MD. HOLE PACKED OFF WHILE REPAIRING # 1 MUD PUMP. 08:30 - 11 :00 2.50 23 B DRLPRO WORKED PIPE AND ROTATED WITH NO CIRCULATION DUE TO PACKOFF. WORKED AND PULLED PIPE UP HOLE T/2765'. COULD NOT CIRCULATE. 11 :00 - 12:30 1.50 23 B DRLPRO WORKED PIPE FREE AND PULLED UP HOLE TO 2722' CIRCULATED AND CONDITIONED MUD. PUMP PRESURE DROPPED OFF BY 1K. CHECKED PUMPS AND CIRCULATED HOLE. 12:30 - 16:00 3.50 19 DRLPRO POOH. 16:00 - 16:30 0.50 19 DRLPRO DOWNLOAD LWD TOOL SOURCES AND PULLED OUT OF HOLE. LEFT BIT, MOTOR, AND STABILIZER IN HOLE. TOTAL FISH LEFT IN HOLE 35.68 FEET. 16:30 - 18:00 1.50 19 DRLPRO LAID DOWN LWD TOOLS AND BHA 18:00 - 21 :30 3.50 19 DRLPRO MADE UP XO SUB, 8-1/4" STABILIZER, XO, AND HWDP. RIH AND TAGGED FILL AT 2688'. WASHED FILL FOR 3 FEET AND RAN IN HOLE TO 2734' AND TAGGED UP ON FISH. WASHED OFF TOP OF FISH AND ATTEMPTED TO SCREW IN. ATTEMPTS APPEARED TO ALLOW PIN TO GO IN BOX. NO TORQUE COULD BE ESTABLISHED AND PUMP PRESSURE INCREASED WITH WEIGHT APPLIED. ROTATING FREELY INCREASED PUMP PRESSURE SLIGHTLY. ACTS LIKE BOX IS SPLIT. NOTE: BOTTOM OF FISH IS 24' OFF BOTTOM. 21 :30 - 23:30 2.00 19 DRLPRO PULLED OUT OF HOLE FOR OVERSHOT. Printed: 4/2212005 6:53:22 AM · .RECEI. " ,<.,~~"" MAY 0 2 2005 DRLPRO INSPECTED DERRICK FOR ANY FLUNG DANGERS WHEN JARRING STARTS DRLPRO MADE UP 11-1/4" BY 10-5/8"CUTLlP GUIDE ON BOTTOM OF BOWEN 150 OVERSHOT DRESSED WITH 8-1/8" MILL CONTROL GUIDE, PACKOFF, AND BASKET GRAPPLE FOLLOWED BY BUMPER JARS, HYD JAR, XO, 3-8" DC's, XO, ACC JAR, XO, CIRC SUB, AND 27 HWDP. DRLPRO RAN IN HOLE TO 2729' AND CIRCULATED FILL OFF OF TOP OF FISH WITH 750 GPM. TAGGED TOP OF FISH AT 2734'. WORKED OVERSHOT OVER FISH AND MILLED ON TOP OF FISH. MADE A FEW INCHES SO FAR AND HAVE ATTEMPTED TO LATCH FISH WITH NO JOY YET. CONTINUEING TO BURN OVER TOP OF FISH WITH MILL CONTROL GUIDE. DRLlN1 WORK OVERSHOT OVER THE TOP OF FISH AT 2734' DRLlN1 JARRING ON STUCK STUCK PIPE. PULLED TO 500K WITH LITTLE TO NO PROGRESS. MADE A TOTAL OF 4 FEET. TOP OF FISH AT 2730' AND JARS QUIT. RECIEVED ORDERS FROM TOWN TO SHUCK OVERSHOT AND LAY CEMENT PLUG. UNABLE TO SHUCK OVERSHOT. SCHLUMBERGER ON THE WAY TO RUN BACKOFF SHOT. DRLPRO WORK ON FISH PULLING UP TO 500K AND TORQUEING TO ATTEMPT TO RELEASE OVERSHOT. PUMPED AND CIRCULATED BY BLOWING THE SEALS IN THE PACK OFF WITH 1300 PSI. CIRCULATED AT 350 GPM. DRLPRO RIG UP SCHLUMBERGER PIPE RECOVERY WIRELlNE EQUIPMENT. HELD SAFETY MEETING AND PREPARED TO RUN IN HOLE. DRLPRO RAN IN HOLE WITH 1-11/16" STRIP AND 6-80 GRAIN 12 FOOT PRIMER CORDS, CCL TOOL AND FIRING HEAD. TAGGED TOP OF FISH AT 2730'. RAN STRIP AND TIED IN. POSITIONED CHARGE ACROSS BUMPER SUB TOP CONNECTION. APPLIED AND WORKED LEFT HAND TORQUE DOWN HOLE. SHOT CHARGE AND BACKED OFF AT 2717'. CHECKED BACKOFF WITH WIRE LINE STRIP. PULLED OUT OF HOLE WITH SCHLUMBER LINE AND RIGGED DOWN SCHLUMBERGER SIDE DOOR SUB AND WIRELlNE PACKOFF. CIRCULATED BOTTOMS UP AND SHAKERS CLEAN @ 760 GPM. PULLED OUT OF HOLE. LAID DOWN DRILL COLLARS, ACCELERATORS, 8" DRILL COLLARS, XO'S, AND OIL JARS. PICKED UP MULE SHOE AND RAN IN HOLE. HALLIBURTON ARRIVED AT 0300. RIGGED UP HALLIBURTON AND PREPARED TO CEMENT. CIRCULATED AND HELD SAFETY MEETING. RIGGED UP CEMENT HEAD AND TESTED LINES. MIXED AND PUMPED 300 SACKS OF PREMIUM CEMENT MIXED TO 15.8 PPG WITH 2% CACL2. SPOTTED BALANCED PLUG FROM 2700' TO 2300'. PULLED 10 STANDS AND FLUSHED DRILL PIPE. CEMENT IN PLACE 0600 HRS. DRLPRO TRIP OUT WITH 5 STANDS Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: I Date KIGUN #1 DRILLING NABORS ALASKA, INC. NABORS F Sub rom - To Hours Code Code Phase 3/12/2005 23:30 - 00:00 0.50 19 00:00 - 03:00 3.00 19 03:00 - 06:00 3.00 19 3/13/2005 06:00 - 06:30 06:30 - 09:00 0.50 19 2.50 19 09:00 - 17:30 8.50 19 17:30 - 20:30 3.00 19 20:30 - 22:00 1.50 19 22:00 - 23:30 1.50 19 DRLPRO 23:30 - 00:00 0.50 19 DRLPRO 00:00 - 03:00 3.00 19 DRLPRO 03:00 - 04:30 1.50 19 DRLPRO 04:30 - 06:00 1.50 19 DRLPRO 3/14/2005 06:00 - 06:15 0.25 06:15 - 07:00 07:00 - 09:00 0.75 2.00 DRLPRO CBU, PUMP DRY JOB, BLOW DOWN TOP DRIVE DRLPRO PJSM, CUT DRILL LINE Start: 3/9/2005 Rig Release: 3/30/2005 Rig Number: 27E Spud Date: 1/30/2005 End: 3/30/2005 Group: Printed: 4/22/2005 6:53:22 AM . . Legal Well Name: KIGUN #1 Common Well Name: Spud Date: 1/30/2005 Event Name: DRILLING Start: 3/9/2005 End: 3/30/2005 Contractor Name: NABORS ALASKA, INC. Rig Release: 3/30/2005 Group: Rig Name: NABORS Rig Number: 27E Date From -To Hours Cöde Sub Phase Description OfOp@[ç¡tioll$ Code 3/14/2005 09:00 - 10:00 1.00 DRLPRO TRIP OUT 10:00 - 16:30 6.50 15 DRLPRO RlU AND TEST BOP 16:30 - 17:00 0.50 07 DRLPRO SERVICE TOP DRIVE AND RIG 17:00 - 22:00 5.00 20 DRLPRO PU BHA, UPLOAD MWD TOOLS, RUN IN HOLE AND TAG CEMENT TOP AT 2372'. 22:00 - 22:30 0.50 20 DRLPRO DRESS OFF CEMENT BY WASHING AND DRILLING CEMENT FROM 2372' TO 2434'. CEMENT TAKING 10K WOB. CIRCULATED AND ORIENTED DIRECTIONAL TOOLS 22:30 - 01 :00 2.50 20 DRLPRO TIME DRILL FROM 2434' TO 2477' WITH 620 GPM AND 130 DEGREE TOOL FACE. GETTING FORMATION AND CEMENT 01 :00 - 02:00 1.00 02 B DRLPRO TIME DRILL AND SLIDE FROM 2477' TO 2497' WITH 130 TO 150 DEGREE TOOL FACE. GETTING MORE FORMATION THAN CEMENT IN RETURNS. 02:00 - 04:30 2.50 02 B DRLPRO SLIDE DRILL FROM 2497' TO 2686' SURVEY AT 2524',10.33 DEGREES, 291 AZIMUTH. GETTING 100% FORMATION RETURNS. ROTATED FROM 2515-2530, SLID FROM 2530 TO 2570 @ 150L. ROTATED FROM 2570 TO 2592, SLID FROM 2592' TO 2609' @ 180, ROTATED FROM 2609' TO 2625', SLID FROM 2625' TO 2686' @ 180. SURVEY AT 2618',8.11 DEGREES 291 AZIMUTH. SIDETRACK IS SUCESSFUL WITH OFFSET NOW OVER 6 FEET BETWEEN WELLBORES. LAST SURVEY DOGLEG 3.1 DLS. 04:30 - 06:00 1.50 02 B DRLPRO SLIDE AND ROTATE FROM 2686 TO 2781' PUMP RATE 680 GPM. WOB 5 TO 15, DIFFERENTIAL PRESSURE 150 TO 200 PSI. ON BOTTOM PUMP PRESSURE 2450 OFF BOTTOM 2350. SURVEY AT 2712.4',3.93 DEGREES AT 255.85 AZIMUTH UNCORRECTED. AST 5.17, ART 0.32 HRS. 3/15/2005 06:00 - 09:30 3.50 02 B DRLlN1 SLIDE DRILL AND ROTATE FROM 2781' TO 3100' WITH SLIDES FROM 2886 TO 2956 AND 3062' TO 3100'. ART 2.47, AST 5.6. PICK UP 145 SO 125 ROT 135. TORQUE 4 TO 5 K ON BOTTOM ROTATING. 09:30 - 10:30 1.00 05 A DRLlN1 CIRCULATE AND REPAIR MUD PUMP SWAB. 10:30 - 20:30 10.00 02 A DRLlN1 ROTARY DRILL FROM 3100' TO 3766' WITH 10-15K WOB, AND 90 RPM. TORQUE5K. 20:30 - 01 :30 5.00 05 A DRLlN1 CIRCULATE SWEEP, TWO BOTTOMS UPS AND MADE WIPER TRIP TO WINDOW. FIRST STAND OFF BOTTOM HAD TIGHT SPOT AT 3700'. RAN IN HOLE AND TAGGED UP AT 3714'. 01 :30 - 04:00 2.50 05 A DRLlN1 WASHED FROM 3714' TO 3766'. WASHED THROUGH BRIDGES AT 3714' AND 3756'. CIRCULATED SWEEP AND TWO BOTTOMS UP UNTIL HOLE CLEANED UP. SPOTTED THICK PILL ON BOTTOM AS PER CORING PROCEDURE. 04:00 - 06:00 2.00 06 0 DRLlN1 PULLED OUT OF HOLE SLOWLY. 3/16/2005 06:00 - 08:00 2.00 04 DRLPRO UD BHA 08:00 - 11 :00 3.00 04 DRLPRO HELD PJSM & P/U CORE BARREL AND ASSOCIATED BHA 11 :00 - 15:30 4.50 04 DRLPRO RIH WITH BAKER CORING BHA. WASHED THROUGH BRIDGE @ 2705' MD 15:30 - 17:00 1.50 04 DRLPRO CBU 17:00 - 18:00 1.00 04 DRLPRO DROPPED THE BALL AND STARTED CORING. CUT 60 FOOT CORE FROM 3766' TO 3826'. DROPPED SECOND BALL AND ACTIVATED HYDROLlFT CLOSING GATE. 18:00 - 19:00 1.00 04 DRLPRO PULLED UP HOLE TO 3736', C&C MUD, PUMPED DRY JOB 19:00 - 21:00 2.00 04 DRLPRO PULLED UP HOLE TO 2480 AT 4 MINUTES TO THE STAND, THEN TO 1825' AT 6 MINUTES TO THE STAND AS PER CORING Printed: 4/2212005 6:53:22 AM . . Legal Well Name: Common Well Name: Spud Date: 1/30/2005 Event Name: DRILLING Start: 3/9/2005 End: 3/30/2005 Contractor Name: NABORS ALASKA, INC. Rig Release: 3/30/2005 Group: Rig Name: NABORS Rig Number: 27E ¡ Date From - To Hours Code Sub Phase Dø!?cri ptiorl pfOperatiQl1s Code 3/16/2005 19:00 - 21 :00 2.00 04 DRLPRO INSTRUCTIONS. 21:00-22:00 1.00 04 DRLPRO WAIT ON GAS TO BLEED OUT OF CORE AS PER CORING INSTRUCTIONS 22:00 - 00:00 2.00 04 DRLPRO PULL UP HOLE @ 10 MINUTES TO THE STAND AS PER CORING INSTRUCTIONS 00:00 - 01 :00 1.00 04 DRLPRO PULL TO 500 FEET AS PER CORING INSTRUCTIONS 01 :00 - 02:00 1.00 04 DRLPRO WAIT ON CORE TO BLEED AS PER INSTRUCTIONS 02:00 - 04:30 2.50 04 DRLPRO PULL OUT OF HOLE AT 30 MINUTES PER STAND AS PER CORING INSTRUCTIONS 04:30 - 06:00 1.50 04 DRLPRO PJSM AND LAY DOWN CORE AS PER INSTRUCTIONS 3/17/2005 06:00 - 09:00 3.00 04 DRLPRO FINISHED LAYING DOWN CORE BHA AND BARREL. PUT CORE SAMPLE OUTSIDE NEXT TO PIPE SHED TO FREEZE. 48' OF RECOVERY. WAITING ON DRY ICE FOR PACKAGING AND SHIPMENT. CLEANED FLOOR AND FINISHED LOADING OUT CORE EQUIPMENT FROM RIG FLOOR. 09:00 - 09:30 0.50 06 0 DRLPRO P/U BHA W/.78 BEND MOTOR FOR CONTINUED DRILLING OF 12 1/4" HOLE. 09:30 - 10:00 0.50 06 D DRLPRO P/U MWD TOOL 10:00 - 11 :00 1.00 06 D DRLPRO PROGRAMED MWD AND P/U DC AND HWDP. 11:00-12:00 1.00 06 0 DRLPRO RIH WITH HWDP 12:00 - 14:00 2.00 06 D DRLPRO RIH, WASHED AND REAMED THROUGH TIGHT SPOTS AT 2705' AND 3438'. 14:00 - 15:30 1.50 06 0 DRLPRO DRILLED AND REAMED CORED INTERVAL FROM 3766' TO 3826' TO 12-1/4" FROM 8-1/2". 15:30 - 22:00 6.50 02 A DRLPRO ROTARY DRILLED FROM 3826' TO 4525'. 22:00 - 00:30 2.50 05 A DRLPRO CIRCULATE AND CONDITION MUD FOR WIPER TRIP. CIRCULATED CLEAN 00:30 - 03:00 2.50 06 B DRLPRO MADE WIPER TRIP TO SHOE WITH TIGHT SPOTS AT 3990',3490', 3370', & 3280'. TIGHT SPOT @ 3990' PULLED AS MUCH AS 75K OVER. WORKED UP, DOWN, AND THROUGH TIGHT SPOT ON THIRD ATTEMPT. PULLED 50K OVER AT 3490; 30K OVER AT 3370, AND 25K OVER AT 3280. 03:00 - 03:30 0.50 07 DRLPRO CLEANED RIG FLOOR 03:30 - 04:00 0.50 07 DRLPRO SERVICE TOP DRIVE 04:00 - 04:30 0.50 06 B DRLPRO RIH T/2700' MD, TAGGED BRIDGE @ 2710' 04:30 - 06:00 1.50 03 C DRLPRO WASHED AND REAMED BRIDGE AT 2710'. ATTEMPT TO SLIP PAST BRIDGE/LEDGE WITH NO ROTARY SO FAR NO JOY. CONTINUED TO REAM TIGHT SPOT. 3/18/2005 06:00 - 08:30 2.50 03 C DRLPRO WASHED AND REAMED 2686' TO 2780', WORKED LEDGE @ 2705' - 2707' MD 08:30 - 09:30 1.00 06 B DRLPRO RIH SLICK TO 4465' REAMED TO 4466' AND WASHED UP TO 4525' MD 09:30 - 12:30 3.00 06 B DRLPRO CBU & COND HOLE FOR E-LOGS, PUMP CARBIDE FLAG 12:30 - 16:00 3.50 06 B DRLPRO POH WT-UP 180K, WT-DN 150K, WT-ROT 168K, TQ 4-5K 16:00 - 18:00 2.00 06 C DRLPRO LD BHA 18:00 - 19:00 1.00 11 A DRLPRO PJSM & RU SCHLUMBERGER 19:00 - 23:00 4.00 11 A DRLPRO MADE ELECTRIC LINE RUN # 1 FROM 4492' TO 1913' WITH QUAD COMBO CONSISTING OF INDUCTION, DIPOLE SONIC, DENSITY, NEUTRON, CALIPER, PLATFORM EXPRESS, AIT/DSI/TLD/MCFL. HOLE SLICK Printed: 4/2212005 6:53:22 AM . . RECEIVED MAY 0 2 2005 Legal Well Name: KIGUN #1 Common Well Name: Spud Date: 1/30/2005 Event Name: DRILLING Start: 3/9/2005 End: 3/30/2005 Contractor Name: NABORS ALASKA, INC. Rig Release: 3/30/2005 Group: Rig Name: NABORS Rig Number: 27E I Date From \To Hours Code Sub pe$êriÞtiqn of Qperªtioh~ Code Phase 3/18/2005 19:00 - 23:00 4.00 11 A DRLPRO 23:00 - 03:30 4.50 11 A DRLPRO MADE TWO PASSES WITH RUN # 2 CONSISTING OF OBMI TOOL FROM 4492' TO 1913'. HOLE SLICK, NO SIGN OF LEDGE. 03:30 - 05:00 1.50 11 A DRLPRO RIG DOWN OBMI TOOL STRING AND CLEAN FLOOR IN PREPARATION FOR TLC MDT TOOL RUN. . 05:00 - 06:00 1.00 11 A DRLPRO PJSM WITH SCHLUMBERGER ON TLC MDT TOOL PICKUP AND RUNNING. STARTED PICKING UP MDT TOOLS. 3/19/2005 06:00 - 06:00 24.00 11 A DRLPRO WIRELlNE E-LOG MDT TOOK PRESSURES AT 20 DEPTHS. TEN SUCCESSFUL AT 2180', 2244', 2265', 3642', 3653', 3785', 3795', 3800', 3803', AND 3808'. ATTEMPTED TO TAKE SAMPLES. MADE THREE ATTEMPTS TO TAKE SAMPLES AT 3800',3803' AND 3785' AND FAILED WITH ALL ATTEMPTS. HOLE CONDITIONS DETERIORATING AND PACKERS NOT ACTING CORRECTLY. HAD TO WORK UP TO 14000 POUNDS PULL AND 5000 POUNDS SLACK OFF INTERMITTENTLY FOR 45 MINUTES TO PULL OFF OF SAMPLE ATTEMPT # 2. SAMPLE ATTEMPT # 3 CAME FREE WITH SIMILAR TECHNIQUES AFTER 20 MINUTES. HOLE TIGHT PULLING UP HOLE. NOTE PARTIALLY INFLATED PACKERS AND DEFLATED MDT PACKERS TWICE TO GET PACKER ELEMENTS TO RELAX AND ALLOW PULLING THROUGH TIGHT SPOTS ENCOUNTERED WIHILE PULLING UP HOLE FROM 3700'. PRESENTLY ATTEMPTING TO OBTAIN WATER SAMPLE ON PRINCE CREEK SAND AT 2260'. 3/20/2005 06:00 - 07:30 1.50 06 C DRLPRO RIH TO 3660' 07:30 - 09:00 1.50 11 A DRLPRO LOGGING SAMPLES @ 3660'. SUCCESSFULLY OBTAINED WATER SAMPLE FROM PRINCE CREEK SAND FORMATION. 09:00 - 09:30 0.50 06 C DRLPRO RIH TO 3807' 09:30 -13:00 3.50 11 A DRLPRO LOGGING SAMPLES @ 3807'. OBTAINED FLUID SAMPE FROM SCHRADER BLUFF N SAND FORMATION. FLUID SAMPLE ATTEMPT FROM SCHRADER BLUFF OA SAND UNSUCCESSFUL. INSPECTED DERRICK & RIGGINGS 13:00 - 17:00 4.00 06 C DRLPRO POOH, NO TIGHT SPOTS 17:00 - 19:30 2.50 06 C DRLPRO UD LOGGING TOOLS 19:30 - 22:00 2.50 06 B DRLPRO P/U CLEANOUT BHA, RIH TO WINDOW 22:00 - 23:33 1.55 06 B DRLPRO FILL PIPE AT WINDOW, RIH TO 4525' MD, NO PROBLEMS 23:33 - 01 :30 1.95 05 A DRLPRO CIRCULATED AND CLEANED HOLE FOR CASING 01:30 - 06:00 4.50 06 B DRLPRO POOH, AND UD BHA, NO TIGHT SPOTS ON TRIP 3/21/2005 06:00 - 08:00 2.00 26 DRLPRO PULLED WEAR RING, SET PLUG, CHANGED OUT TOP RAMS TO 9-5/8" 08:00 - 09:00 1.00 15 DRLPRO TEST 9-5/8" RAMS 250 - 2500#. UD PLUG & T.J. 09:00 - 10:00 1.00 26 DRLPRO P/U LANDING JOINT. DUMMY RUN HANGER AND UD SAME. 10:00 -12:00 2.00 12 B DRLPRO P/U CASING EQUIPMENT 12:00 - 19:30 7.50 12 A DRLPRO RUN CASING, NO TIGHT SPOTS OR LOSS RETURNS, AT 4500' MD DRAG UP= 230K, DN =170K 19:30 - 21 :00 1.50 05 A DRLPRO CIRCULATE 1.5 TIMES CASING VOLUME, NO LOSS RETURNES 21 :00 - 21 :30 0.50 12 B DRLPRO R/U CEMENT HEAD 21:30-23:00 1.50 12 C DRLPRO CEMENT CASING, PUMP 10 BBLS WATER, THEN 50 BBLS Printed: 4/2212005 6:53:22 AM · .ECEIVED MAY 0 2 2005 Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: I Data KIGUN #1 DRILLING NABORS ALASKA, INC. NABORS Spud Date: 1/30/2005 End: 3/30/2005 Group: Start: 3/9/2005 Rig Release: 3/30/2005 Rig Number: 27E DE¡sçriÞtiC>h.Ç>f..QpE¡r9tiö!1$ Sub From - To Hours Code Code Phase 3/21/2005 21 :30 - 23:00 1.50 12 23:00 - 00:30 1.50 12 B 00:30 - 03:00 2.50 12 B 03:00 - 04:30 1.50 12 B 04:30 - 06:00 1.50 08 A 3/22/2005 06:00 - 10:30 4.50 15 3/23/2005 10:30 -11:00 0.50 26 11 :00 - 12:00 1.00 26 12:00 - 14:00 2.00 06 D 14:00 - 16:30 2.50 06 D 16:30 - 18:00 1.50 06 D 18:00 - 18:30 0.50 07 18:30 - 19:30 1.00 06 D 19:30 - 20:30 1.00 12 20:30 - 22:00 1.50 02 A 22:00 - 22:30 0.50 05 A 22:30 - 23:00 0.50 05 23:00 - 23:30 0.50 02 A 23:30 - 00:00 0.50 05 00:00 - 06:00 6.00 02 A 06:00 - 10:30 4.50 02 A 10:30 -11:00 0.50 07 11:00 - 21:00 10.00 02 A 21 :00 - 22:00 1.00 06 B 22:00 - 04:00 6.00 02 A 04:00 - 06:00 2.00 08 A 06:00 - 14:00 8.00 08 3/24/2005 14:00 - 16:00 2.00 06 16:00 - 17:00 1.00 03 17:00 - 23:00 6.00 02 A 23:00 - 04:00 5.00 08 A 04:00 - 06:00 2.00 02 3/25/2005 06:00 - 21:30 15.50 02 A C DRLPRO SPACER, THEN 193 BBLS LEAD TYPE L CEMENT AT 10.7 PPG, THEN 41 BBLS TAIL USING PREMIUM W/1% CaC12 -15.8 PPG, NO LOSSES WHEN PUMPING CEMENT, CASING IN PLACE AT 23:00 HRS, FLOAT COLLAR AT 4420' MD, FLOAT SHOE AT 4505' MD DRLPRO DRAIN STACK, SET MANDRIL HANGER, RID CEMENT HEAD DRLPRO UD LANDING JOINT, CLEAR FLOOR OF ALL CASING RUNNING EQUIPTMENT DRLPRO PICK UP PACK OFF ASSEMBLY AND SET, TEST TO 5000 PSI FOR 15 MINUTES DRLPRO CHANGE TOP PIPE RAMS TO 5" DRLPRO PJSM. TEST B.O.P. HYDRIL 250-3500 - PIPE RAMS, HYD KILL & CHOLE, MAN KILL & CHOKE, ALL CHOKE MANIFOLD VALVES, FLOOR SAFETY VALVES, HYD & MAN IBOP & BLINDS 250-5000 DRLPRO PULL TEST PLUG, SET WEARRING, BLOW DOWN DRLPRO C/O 16" AIR SEAL (BELL NIPPLE) DRLPRO PIU BHA DRLPRO LOAD NUCLAR SOURCES AND PROGRAM MWD DRLPRO RIH TO 2347' MD, BREAK CIRCULATION DRLPRO SERVICE TOP DRIVE DRLPRO RIH TO 4416 MD' DRLPRO TEST CASING TO 2500 PSI FOR 30 MINUTES DRLPRO DRILL FLOAT AND SHOE + 20 FEET OF NEW HOLE DRLPRO CIRCULATE AND CONDITION MUD FOR LEAK OFF TEST DRLPRO PERFORM LOT, STOPPED PUMPING AT 2500 PSI, PSI SEEMED TO HIGH DRLPRO DRILL AHEAD 20 FEET FOR NEW LOT DRLPRO PERFORM LOT, STOPPED PUMPING AT 2500 PSI, EWM =21.2 PPG DRLPRO DRILLED AHEAD F/4545' T/5169' MD, 5072' TVD DRLPRO DRILLED AHEAD F/5169' T/5738' MD DRLPRO SERVICED TOP DRIVE AND BLOCKS DRLPRO DRILLED AHEAD F/5738' T/6690' MD DRLPRO CBU, 4 STAND SHORT TRIP TO CLEAN HOLE DRLPRO DRILLED AHEAD F/6690' T17282' MD DRLPRO RUPTURED SHOCK HOSE, POOH TO SHOE DRLPRO WORKED ON REPAIR OF SHOCK HOSE IN HIGH PRESSURE MUD LINE DRLPRO RIH TO 7072' MD DRLPRO WASHEDAND REAMED F/7072' MD T/7282' MD. DRLPRO DRILLED FROM 7282' MD TO 7837' MD, DRAG UP = 220K, DOWN = 175K, ROTATE = 200KAND ROTARY TORQUE WAS 10K. DRLPRO O-RING WASHED OUT OF HAMMER UNION ON STANDPIPE UNDER RIG FLOOR. REPAIR SAME. NO FLUID LOSS. DRLPRO DRILLED TO 7988' MD DRLPRO DRILLED F/7988' T/9098' MD " SWEEPS @8050' & 8425' RETURNED 10-15% INCREASED CUTTINGS. CONN. GAS MAX 363 UNITS. LUBED BLOCKS AND ToO. ZONAL INSPECTED DERRICK Printed: 4/2212005 6:53:22 AM . . RECEIVEr) MAY 0 2 2005 Legal Well Name: KIGUN #1 Common Well Name: Spud Date: 1/30/2005 Event Name: DRILLING Start: 3/9/2005 End: 3/30/2005 Contractor Name: NABORS ALASKA, INC. Rig Release: 3/30/2005 Group: Rig Name: NABORS Rig Number: 27E I Date From - To Hóurs . Code Sub Phase DescriPtion ()f OÞ~r;:lti()n$ Code 3/25/2005 06:00 - 21:30 15.50 02 A DRLPRO WT UP 255K WT DN 190K WT RT 225K TQ 10-15K ON TQ 10-11K OFF 21 :30 - 23:00 1.50 05 A DRLPRO CIRCULATE BOTTOMS UP FOR TRIP OUT OF HOLE. 23:00 - 03:00 4.00 06 0 DRLPRO POOH TO BHA, NO PROBLEMS 03:00 - 06:00 3.00 06 D DRLPRO POOH LAYING DOWN ENTIRE BHA 3/26/2005 06:00 - 08:00 2.00 26 DRLPRO PJSM, DOWNLOAD NUKES & MWD 08:00 - 09:30 1.50 26 DRLPRO LAIDED DOWN MWD, MOTOR AND BIT. CLEANED FLOOR 09:30 - 14:00 4.50 06 H DRLPRO SERVICED RIG. SEALED SPLASH RING. PICKED UP MULE SHOE, RIH To 9098' MD 14:00 - 16:00 2.00 05 A DRLPRO CIRCULATE AND CONDITION MUD FOR CEMENT PLUG 16:00 - 16:30 0.50 49 DRLPRO PJSM AND TEST CEMENT LINES TO 2500 PSI 16:30 - 18:00 1.50 49 DRLPRO PLUG #1, W/OEDP @ 9098' MD, PUMPED 13 BBL SPACER, 88 BBLS 15.8 PPG CEMENT, 5 BBL SPACER, DISPLACE WITH 124 BBLS OF OBM - CEMENT IN PLACE AT 17:30 HRS, CALCULATE TOP OF CEMENT AT 8098' MD. 18:00 - 19:00 1.00 06 DRLPRO POOH 15 STANDS TO 7685' MD 19:00 - 21:00 2.00 05 DRLPRO CIRCULATE 1.5 BOTTOMS UPS & SPOTTED 20 BBL HI VIS PILL - TOP OF PILL@7385. PULLED 3 STANDS & CBU. 21 :00 - 22:00 1.00 49 DRLPRO PLUG #2, WIOEDP @ 7385' MD, PUMPED 13 BBL SPACER, 88 BBLS 16.1 PPG CEMENT, 5 BBL SPACER DISPLACE WITH 96 BBLS OF OBM, CEMENT IN PLACE AT 21:30 HRS. CALCULATED TOP OF CEMENT AT 6385' MD. 22:00 - 22:30 0.50 06 DRLPRO POOH TO 5885' MD 22:30 - 23:00 0.50 05 DRLPRO CIRCULATE 1.5 BOTTOMS UP 23:00 - 03:30 4.50 06 DRLPRO POOH LAYING DOWN DRILL PIPE 03:30 - 04:30 1.00 07 DRLPRO SERVICE TOP DRIVE 04:30 - 06:00 1.50 06 DRLPRO RIH 3/27/2005 06:00 - 07:00 1.00 06 H DRLPRO RIH WITH MULE SHOE TO 4434' 07:00 - 09:00 2.00 09 DRLPRO PJSM, CUT & SLIP 100' LINE. INSPECTED BRAKES. CHECKED CROWN SAVER, CHANGED LUBE OIL AND FILTERS ON TOP DRIVE 09:00 - 10:30 1.50 06 H DRLPRO RIH AND WASHED F/6243' AND TAGGED CEMENT PLUG @ 6338' WITH 15K AND 3 BPM. PUMPED SLUG - BLOW DOWN 10:30 - 13:30 3.00 06 DRLPRO POOH 13:30 - 14:00 0.50 07 DRLPRO CLEARED FLOOR PICKED UP HALLIBURTON EZSV TOOLS. 14:00 -16:00 2.00 06 H DRLPRO RIH TO 4400' MD 16:00 - 16:30 0.50 26 DRLPRO RIU CEMENT LINES AND TESTED 16:30 -17:00 0.50 49 DRLPRO SET EZSV AT 4400' MD 17:00 - 18:00 1.00 DRLPRO ESTABLISHED INJECTION RATE OF 4.5 BBLS/MIN @ 1200 PSI, STING OUT, CLOSE BAG AND PRESSURED UP TO 200 PSI ON BACK SIDE, PUMPED 15 BBLS OF SPACER, 20 BBLS 15.8 PPG CEMENT, 5 BBLS SPACER, 31 BBLS MUD, STING IN AND OPEN BAG, PUMPED 36 BBLS MUD, STING OUT 18:00 - 18:30 0.50 06 DRLPRO POOH 60' AND CIRCULATED OUT CEMENT 18:30 - 20:30 2.00 05 DRLPRO DISPLACED OBM WITH WBM 20:30 - 21 :00 0.50 49 DRLPRO TESTED CASING TO 1500 PSI FOR 30 MINUTES 21 :00 - 01 :30 4.50 06 DRLPRO POOH LAYING DOWN 2000' OF DRILL PIPE 01 :30 - 06:00 4.50 39 DRLPRO RlU SCHLUMBERGER AND RAN CASING BOND LOG, BOND LOG OK Printed: 412212005 6:53:22 AM . . RECEIVE MAY 0 Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: KIGUN #1 DRILLING NABORS ALASKA, INC. NABORS From - To Hours Code ¿>o~e Phase 3/28/2005 06:00 - 07:30 1.50 11 07:30 - 10:00 10:00 - 12:00 2.50 11 2.00 11 B Spud Date: 1/30/2005 End: 3/30/2005 Group: Start: 3/9/2005 Rig Release: 3/30/2005 Rig Number: 27E D~scriPt.iqri··öfQperatiol1$ B B EVAL 1 UD TOOLS - REHEAD & RIG LUBRICATOR ARM & P/U GUNS. RIH TO 200' SET LUBRICATOR EVAL 1 RIH & POOH, MISFIRE - REARM & TEST EVAL 1 RIH WIGUNS & PER 3805'-3806' (13 SPF) POOH GAINILOSS STABLE AFTER PERFORATION CHANGED LINER IN #2 PUMP TO 7" CLEANING MUD TANKS R/U SCHL MDT TEST TOOL AND RIH TOOK FLUID SAMPLES OF OA SAND, AS DIRECTED, WITH MDT TOOL POOH WITH E-LlNE, LAY DOWN MDT TOOL PICKED UP HALLIBURTON EZSV TOOL RIH WITH EZSV TO 3716' MD SET EZSV AT 3716' MD. PUMPED 5 BBLS WATER, THEN TESTED CEMENT LINES TO 2500 PSI, PUMPED 10 BBLS WATER, PUMP 11 BBLS OF 15.8 PPG CEMENT, THEN PUMPED 5 BBLS WATER AND STUNG IN EZSV. DISPLACED DP WITH MUD AND DUMPED LAST 4 BBLS OF CEMENT ON TOP. CHASED WITH 55 BBLS OF MUD WITH RIG PUMP. EVAL 1 POOH 60', THEN REVERSED OUT AFTER CEMENT SQUEEZE JOB. TESTED EZSV TO 1500 PSI FOR 30 MINUTES. EVAL 1 POOH LAYING DOWN DRILL PIPE P&A CLEAN SUCTION PIT, TAKE ON WATER AND MIX SOAP. PULL W. R. SET PLUG, FLUSH STACK, CHOKE MANIFOLD AND MUD, CHOKE AND KILL LINES. BLOW DOWN SAME. P&A NIPPLE DOWN - DRAIN & FILL LINES, FLOWLINES AND BELL NIPPLE P&A NIPPLE DOWN BOP STACK CHANGED PUMP #1 TO 7" LINER P&A PICK UP ONE STAND OF DRILL PIPE AND 9 5/8" CASING CUTTER P&A CUT 9 5/8" CASING 15 FEET BELOW MUD LINE P&A LAY DOWN 9 5/8" CASING CUTTER P&A PICK UP 9 5/8" CASING SPEAR, STAB INTO CASING STUB AND PULL TO SURFACE, LAY DOWN CASING STUB P&A NIPPLE DOWN 13 3/8" WELL HEAD P&A CUT 13 3/8" CASING 10 FEET BELOW MUDLlNE, PULL TO v SURFACE AND LAY DOWN SAME P&A PICK UP 20" CASING CUTTER, CUT 20" 6 FEET BELOW MUD LINE, IT TOOK TWO SETS OF CUTTERS TO MAKE THIS CUT POST FINISH CUTTING 20" CONDUCTOR PIPE AND UD SAME. PULLED CELLAR. CEMENTED TOP PLUG FROM 5' BELOW MUD LINE TO ./ 100' MD. PREPARING BALL MILL, PIPE SHED, MOTOR SHED, SUB, DERRICK ETC FOR MOVE. INSPECTED ICE ROAD AND ARRANGED FOR ADDITIONAL ICE ROAD MATS. POST AIC CONTINUED SPREADING ICE CHIPS AND WATER ON THE ROAD IN PREP FOR THE RIG MOVE. CONTINUED WITH RIG DOWN AND MOVE ACTIVITIES. MOVED GUARD SHACK AT END OF ICE ROAD. 12:00 - 14:00 2.00 11 B EVAL 1 14:00 - 18:00 4.00 11 B EVAL 1 18:00 - 19:30 1.50 11 B EVAL 1 19:30 - 21 :00 1.50 06 EVAL 1 21:00-22:30 1.50 06 EVAL 1 22:30 - 23:30 1.00 18 EVAL 1 23:30 - 00:00 0.50 18 EVAL 1 00:00 - 00:30 0.50 05 00:30 - 06:00 5.50 06 3/29/2005 06:00 - 10:00 4.00 26 10:00 -12:00 2.00 14 12:00 - 17:00 5.00 14 17:00 - 19:00 2.00 49 19:00 - 19:30 0.50 49 19:30 - 20:00 0.50 49 20:00 - 21 :00 1.00 49 21:00 - 23:00 2.00 49 23:00 - 03:30 4.50 49 03:30 - 06:00 2.50 49 3/30/2005 06:00 - 14:00 8.00 49 14:00 - 00:00 10.00 01 00:00 - 06:00 6.00 01 A D A POST LAID DOWN 220 ICE ROAD MATS OVER 1720' OF QUESTIONABLE ROAD SURFACE IN PREPARATION FOR THE SUB AND DERRICK Printed: 4/2212005 6:53:22 AM . tECEIVE MAY 0 2 2005 .. . Alaska Oil & Gas Am:hof!EH1H Kerr-McGee Corporation Western North Slope, Kerr McGee West Milne Point Kigun #1 Sperry-Sun Surface ates: 6050899.00 N, 507331.00 E (70033' 01.0364" N, 149056' 23.6181" W) Grid Coordinate System: NAD27 Alaska State Planes, Zone 4 - Surface Coordinates relative to Global Coordinates: 4898.49 S, 12338.03 W (Grid) Surface Coordinates relative to Structure: 0.00 N, 0.00 E (True) , Kelly Bushing Elevation: 40.00ft above Mean Sea Level Kelly Bushing Elevation: 40.00ft above Structure Survey Ref: svy1453 HALLIBURTON · Re;EIVE MAY 0 2 2005 Alaska Oil & Gas Cons. Cormmsslon AnctIV.McGee Corporation HALLIBURTON Western North Slope, KelT McGee Survey Report for West Milne Point- Kigun #1 Measured True Vertical Vertical Dogleg Depth Incl. Azim. Depth Northings Eastings Section Rate (ft) (ft) (ft) (ft) (ft) (0/100ft) Tuvaaq (Rig Surveys) 0.00 0.000 0.000 0.00 O.OON 0.00 E 0.00 138.28 0.110 87.110 138.28 0.01 N 0.13 E -0.11 0.080 223.96 1.130 299.440 223.95 0.43N 0.52W 0.66 1 .429 318.37 1.870 297.450 318.33 1.59 N 2.70W 3.13 0.786 408.54 3.270 292.460 408.41 3.25N 6.38W 7.15 1.571 438.47 3.360 294.600 438.29 3.95 N 7.97W 8.87 0.511 529.32 5.110 295.860 528.89 6.82 N 14.03 W 15.55 1.929 624.92 8.010 298.280 623.85 11.83 N 23.73 W 26.46 3.046 715.56 8.980 298.630 713.50 18.21 N 35.50 W 39.84 1.072 831.85 12.980 290.880 827.64 27.22 N 55.68 W 61.80 3.659 892.84 12.910 290.450 75.27 0.195 986.85 14.230 295.110 97.13 1.822 1075.73 15.940 294.770 120.16 1.927 1171.70 17.270 295.430 147.47 1.400 1266.92 20.300 296.020 178.03 3.188 1362.45 22.580 90.77 N 193.50W 212.86 2.393 1456.21 22.690 107.46 N 225.49 W 248.89 0.878 1551.61 21.960 124.22 N 257.61 W 285.08 1.136 1646.38 21.230 140.00 N 288.72 W 319.90 0.832 1741.64 19.690 155.21 N 318.34 W 353.15 1.619 1837.51 20.720 296.390 1777.42 170.10 N 347.91 W 386.19 1.102 As Drilled 1913.00 21.680 295.420 1847.80 182.02 N 372.47 W 413.41 1.354 Side Track Kigun #1 1964.10 23.260 299.040 1895.02 190.97 N 389.81 W 432.90 4.109 2056.07 20.780 302.030 1980.28 208.44 N 419.53 W 467.37 2.958 2144.97 18.830 305.570 2063.92 225.15 N 444.57 W 497.42 2.574 2243.45 17.110 310.380 2157.60 243.79 N 468.54 W 527.52 2.305 2336.04 14.990 316.030 2246.58 261.23 N 487.23 W 552.46 2.842 2429.99 13.430 316.570 2337.65 277.90 N 503.17 W 574.63 1.666 2433.00 13.370 316.550 2340.58 278.41 N 503.65 W 575.30 1.999 2524.43 10.330 291.540 2430.11 289.10 N 518.55 W 593.57 6.452 2618.16 8.110 279.940 2522.63 293.33 N 532.89 W 608.08 3.078 2712.41 3.920 255.670 2616.36 293.68 N 542.56 W 616.60 5.106 25 March, 2005 . 5:55 Page 2 of 5 DrillQuest 3.03.06.008 . . RECEIVED MAY 0 2 2005 Alaska Oil & Gas Cons. CommÎ$sh:m Ker~MIJ~q~orporation HALLIBURTON W e~tem North Slope, Kerr McGee Survey Report for West Milne Point - Kigun #1 Measured True Vertical Vertical Dogleg Depth Incl. Azim. Depth Northings Eastlngs Section Rate (ft) (ft) (ft) (ft) (ft) (01100ft) 2805.94 2.490 196.170 2709.76 290.93 N 546.23 W 618.38 3.650 2899.80 1.580 152.920 2803.56 287.82 N 546.20 W 616.79 1.834 2993.69 4.300 75.940 2897.35 287.53 N 542.20 W 613.19 4.509 3088.24 3.020 51.070 2991.71 289.95 N 536.82 W 609.77 2.127 3182.17 2.020 21.330 3085.55 293.05 N 534.29 W 609.15 1.719 3275.98 0.470 21.920 3179.33 294.95 N 533.55 W 609.47 1.652 3369.92 0.130 285.520 3273.27 295.33 N 533.51 W 609.63 0.534 3466.16 0.190 267.830 3369.51 295.36 N 533.77 W 609.87 0.080 3558.78 0.270 201.900 3462.13 295.15 N 534.01 W 609.96 0.280 3650.95 0.510 173.330 3554.30 294.54 N 534.04 W 609.69 0.328 3750.31 0.530 190.130 3653.66 609.26 0.154 3846.67 0.600 222.200 3750.01 609.21 0.331 3941.58 0.830 225.120 3844.91 609.49 0.245 4037.60 0.710 212.080 3940.93 609.68 0.220 4130.01 0.590 198.330 4033.33 609.60 0.212 4223.61 0.100 536.80 W 609.55 0.559 4316.16 0.010 536.86 W 609.58 0.115 4410.79 0.200 537.01 W 609.69 0.220 4509.98 0.350 537.48 W 610.05 0.153 4606.32 0.430 538.11 W 610.64 0.224 4698.98 0.490 289.73 N 538.81 W 611.37 0.069 4793.54 0.730 289.84 N 539.79W 612.28 0.342 4888.22 0.760 289.95 N 541.01 W 613.38 0.188 4982.82 0.760 290.01 N 542.25 W 614.48 0.243 5077.39 0.840 289.90 N 543.56 W 615.56 0.090 5173.14 0.880 264.790 5076.41 289.79 N 545.00 W 616.74 0.048 5268.37 0.590 278.520 5171.63 289.80 N 546.21 W 617.79 0.354 5362.11 0.810 281.180 5265.37 290.00 N 547.34 W 618.87 0.237 5457.08 0.690 287.800 5360.33 290.30 N 548.54 W 620.06 0.156 5552.82 0.900 278.980 5456.06 290.60 N 549.83 W 621.32 0.253 5650.13 0.940 283.990 5553.36 290.91 N 551.36W 622.80 0.092 5742.50 0.870 279.390 5645.71 291.21 N 552.79 W 624.18 0.109 5838.45 0.900 285.280 5741.65 291.52 N 554.23 W 625.59 0.100 5933.63 0.920 270.060 5836.82 291.72 N 555.72W 626.97 0.254 6029.19 0.890 275.140 5932.37 291.79 N 557.22 W 628.31 0.090 6124.59 1.010 281.970 6027.76 292.03 N 558.78 W 629.78 0.173 6219.51 1.100 278.330 6122.66 292.33 N 560.50 W 631.42 0.118 6315.42 0.840 276.400 6218.56 292.55 N 562.11 W 632.91 0.273 6410.31 0.930 300.910 6313.43 293.02 N 563.47 W 634.32 0.407 6506.05 1.250 310.880 6409.16 294.10 N 564.92 W 636.12 0.387 25 March, 2005 - 5:55 Page 3 of 5 DrillQuest 3.03.06.008 . . RECEIVEC] MAY 0 2 2005 HALLIBURTON AlaS~e~~_~~~~OEo. '~J~~H~~¡ nèñ 0 raa.e estern f(Jorth Slope, Kerr McGee Survey Report for West Milne Point· Kigun #1 Measured True Vertical Vertical Dogleg Depth Incl. Azim. Depth Northings Eastings Section Rate (ft) (ft) (ft) (ft) (ft) (o/100ft) 6600.56 1.170 312.580 6503.65 295.43 N 566.41 W 638.08 0.093 6697.39 1.150 310.550 6600.46 296.73 N 567.88 W 640.00 0.047 6791.93 0.950 310.830 6694.98 297.86 N 569.19 W 641.70 0.212 6887.33 0.800 330.840 6790.37 298.96 N 570.12 W 643.06 0.354 6979.16 0.800 320.710 6882.19 300.01 N 570.83 W 644.21 0.154 7076.80 0.650 318.110 6979.82 300.95 N 571.63 W 645.38 0.157 7169.48 0.770 312.900 7072.50 301.77 N 572.44 W 646.48 0.147 7268.60 0.890 316.670 7171.61 302.78 N 573.46 W 647.87 0.133 7363.68 0.690 326.180 7266.68 303.80 N 574.28 W 649.10 0.251 7459.11 0.740 337.400 7362.10 304.84 N 574.84 W 650.10 0.155 7554.28 0.580 353.740 7457.26 650.88 0.258 7649.62 0.500 358.270 7552.60 651.39 0.095 7745.30 0.460 346.950 7648.27 651.88 0.107 7840.16 0.490 344.400 7743.13 652.43 0.039 7934.15 0.770 347.470 7837.12 653.15 0.300 8027.39 0.630 575.97 W 653.92 0.151 8124.85 0.730 576.13 W 654.63 0.133 8220.06 0.770 576.19W 655.30 0.074 8314.60 0.850 576.24 W 656.02 0.102 8413.00 0.290 576.22 W 656.49 0.600 8508.13 1.140 316.31 N 576.04 W 656.93 0.901 8604.24 1.150 318.22 N 575.82 W 657.71 0.011 8700.04 1.200 320.17 N 575.62 W 658.52 0.054 8795.38 1.430 322.32 N 575.22 W 659.26 0.318 8891.16 1.700 324.87 N 574.63 W 660.03 0.290 8986.37 2.150 13.320 8889.14 327.99 N 573.93 W 661.00 0.475 9098.00 2.150 13.320 9000.69 , 332.06 N 572.96 W 662.23 0.000 / All data is in Feet (US Survey) unless otherwise stated. Directions and coordinates are relative to True North. .- Vertical depths are relative to RKB = 38' MSL. Northings and Eastings are relative to 1724· FSL & 500' FEL. The Dogleg Severity is in Degrees per 100 feet (US Survey). Vertical Section is from 1724' FSL & 500' FEL and calculated along an Azimuth of 300.323° (True). Based upon Minimum Curvature type calculations, at a Measured Depth of 9098.00ft., The Bottom Hole Displacement is 662.23ft., in the Direction of 300.095° (True). The Along Hole Displacement is 724.14ft. The T otaf Accumulated Dogleg is 84.441 ° The Measured Tortuosity is 1.037°/1000. The Directional Difficulty Index is 4.3. 25 March, 2005 - 5:55 Page 4 of 5 Dri//Quest 3.03.06.008 . I Company: Field: Site: WelI: WelIpath: . Halliburton Global Kerr McGee NWMilrte Point West MilneProspecl TuvaaqSt¡:¡te#1 Kigun#1 BP01 P,( ",.....l \~ l-L Field: NW Milne Point Map System:US State Plane Coordinate System 1927 Geo Datum: NAD27 (Clarke 1866) Sys Datum: Mean Sea Level -- WelI: Tuvaaq State #1 WelI Position: +N/-S +E/-W Position Uncertainty: --- .EFI ITt E Date: 9/21/2005 Time: 14:55:06 Page: Cocordinate(NE) Reference: Well: Tuvaaq State #1, True North Vertical (TVD) Reference: Tuvaaq State #1 35.0 Section (YS) Rèference: WEIll (0.00N,O.00E,300.09Azi) Survey Calculation Method: Minimum CUrvature Ob: Oracle Map Zone: Coordinate System: Geomagnetic Model: Slot Name: 0.00 ft Northing: 6050899.00 ft Latitude: -0.10 ft Easting: 507330.90 ft Longitude: 0.00 ft WelIpath: Kigun#1 BP01 50629232390100 Current Datum: Tuvaaq State #1 Magnetic Data: 3/9/2005 Field Strength: 57593 nT Vertical Section: Depth From (TVD) ft 33.28 Survey Program for Definitive WelIpath Date: 4/6/2005 Validated: Yes Actual From To Survey ft ft 138.28 1837.51 1913.00 2429.99 2433.00 8986.37 Survey MD ft 33.28 138.28 223.96 318.37 408.54 438.47 529.32 624.92 715.56 831.85 892.84 986.85 1075.73 1171.70 1266.92 1362.45 1456.21 1551.61 1646.38 1741.64 1837.51 1913.00 1964.10 2056.07 2144.97 2243.45 2336.04 2429.99 --- Inel deg 0.00 0.11 1.13 1.87 3.27 3.36 5.11 8.01 8.98 12.98 12.91 14.23 15.94 17.27 20.30 22.58 22.69 21.96 21.23 19.69 20.72 21.68 23.26 20.78 18.83 17.11 14.99 13.43 Height 35.03 ft +N/-S ft 0.00 Alaska, Zone 4 Well Centre bggm2004 70 33 1.036 N 149 56 23.621 W Drilled From: Tie-on Depth: Above System Datum: Declination: Mag Dip Angle: +E/-W ft 0.00 Kigun #1 2429.99 ft Mean Sea Level ,/ 24.32 deg 80.87 deg Direction deg 300.09 Tuvaaq State #1 (138.28-17593.34) (4) Kigun#1 (1913.00-2712.94) (2) Kigun#1 BP01 (2433.00-8986.37) Azim deg 0.00 87.11 299.44 297.45 292.46 294.60 295.86 298.28 298.63 290.88 290.45 295.11 294.77 295.43 296.02 296.48 298.60 296.49 297.30 297.07 296.39 295.42 299.04 302.03 305.57 310.38 316.03 316.57 TVD ft 33.28 138.28 223.95 318.33 408.41 438.29 528.89 623.85 713.50 827.64 887.08 978.47 1064.28 1156.25 1246.38 1335.30 1421.84 1510.09 1598.20 1687.45 1777.42 1847.80 1895.02 1980.28 2063.92 2157.60 2246.58 2337.65 Sys TVD ft -1.75 103.25 188.92 283.30 373.38 403.26 493.86 588.82 678.47 792.61 852.05 943.44 1029.25 1121.22 1211.35 1300.27 1386.81 1475.06 1563.17 1652.42 1742.39 1812.77 1859.99 1945.25 2028.89 2122.57 2211.55 2302.62 Version: 2 Toolcode Tool Name MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC N/S ft 0.00 0.01 0.42 1.59 3.25 3.94 6.82 11.83 18.21 27.22 32.04 40.62 50.37 62.00 75.32 90.77 107.46 124.22 139.99 155.21 170.10 182.02 190.97 208.44 225.15 243.78 261.23 277.90 E/W ft 0.00 0.10 -0.55 -2.73 -6.41 -8.00 -14.06 -23.76 -35.53 -55.71 -68.49 -88.80 -109.77 -134.60 -162.22 -193.53 -225.52 -257.64 -288.75 -318.37 -347.94 -372.50 -389.85 -419.56 -444.60 -468.57 -487.26 -503.20 MapN ft 6050899.00 6050899.01 6050899.42 6050900.59 6050902.25 6050902.94 6050905.80 6050910.81 6050917.18 6050926.16 6050930.97 6050939.52 6050949.25 6050960.86 6050974.15 6050989.57 6051006.22 6051022.95 6051038.69 6051053.88 6051068.74 6051080.63 6051089.56 6051107.00 6051123.69 6051142.30 6051159.72 6051176.37 MapE ft 507330.90 507331.00 507330.35 507328.17 507324.48 507322.90 507316.83 507307.13 507295.35 507275.17 507262.38 507242.07 507221.09 507196.25 507168.62 507137.30 507105.30 507073.16 507042.04 507012.41 506982.83 506958.26 506940.90 506911 .18 506886.12 -- Tool TIE LINE MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+I FR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+I FR-AK-CAZ -SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+I FR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+I FR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+I FR-AK-CAZ-SC MWD+IFR-AK-CAZ-SC MWD+I FR-AK-CAZ-SC MWD+I FR-AK-CAZ-SC 506862.14 MWD+IFR-AK-CAZ-SC 506843.43 MWD+IFR-AK-CAZ-SC 506827.48 MWD+IFR-AK-CAZ-SC --~~ ~GJ~ ù^-~- 11' 0# . Halliburton . Global Company: Kerr McGee Date: 9/21/2005 Time: 14:55:06 Page: 2 Field: NW Milne Point Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Site: West Milne Prospect Vertical (TVD) Reference: Tuvaaq State #1 35.0 Well: Tuvaaq State #1 Section (VS) Reference: Well (0.00N,0.00E,300.09AZi) Wellpath: Kigurl#1 BP01 Survey Calculation Method: Minimum Curvature Db: Oracle -- ~-"~~- Survey MD lucl Azim TVD Sys TVD N/S EIW MapN MapE Tool ft deg deg ft ft ft ft ft ft 2433.00 13.37 316.55 2340.58 2305.55 278.40 -503.68 6051176.88 506827.00 MWD+I FR-AK-CAZ-SC 2524.43 10.33 291.54 2430.11 2395.08 289.10 -518.59 6051187.56 506812.08 MWD+IFR-AK-CAZ-SC 2618.16 8.11 279.94 2522.63 2487.60 293.32 -532.92 6051191.77 506797.75 MWD+I FR-AK-CAZ-SC 2712.41 3.92 255.67 2616.36 2581.33 293.68 -542.59 6051192.11 506788.07 MWD+IFR-AK-CAZ-SC 2805.94 2.49 196.17 2709.76 2674.73 290.93 -546.26 6051189.36 506784.41 MWD+I FR-AK-CAZ-SC 2899.80 1.58 152.92 2803.56 2768.53 287.82 -546.24 6051186.25 506784.43 MWD+IFR-AK-CAZ-SC 2993.69 4.30 75.94 2897.35 2862.32 287.52 -542.23 6051185.96 506788.44 MWD+I FR-AK-CAZ-SC 3088.24 3.02 51.07 2991.71 2956.68 289.95 -536.85 6051188.39 506793.81 MWD+IFR-AK-CAZ-SC 3182.17 2.02 21.33 3085.55 3050.52 293.05 -534.33 6051191.49 506796.34 MWD+I FR-AK-CAZ-SC 3275.98 0.47 21.92 3179.33 3144.30 294.94 -533.58 6051193.39 506797.08 MWD+ FR-AK-CAZ-SC 3369.92 0.13 285.52 3273.27 3238.24 295.33 -533.54 6051193.77 506797.12 MWD+I FR-AK-CAZ-SC 3466.16 0.19 267.83 3369.51 3334.48 295.35 -533.81 6051193.80 506796.86 MWD+IFR-AK-CAZ-SC 3558.78 0.27 201.90 3462.13 3427.10 295.15 -534.04 6051193.59 506796.62 MWD+IFR-AK-CAZ-SC 3650.95 0.51 173.33 3554.30 3519.27 294.54 -534.07 6051192.98 506796.59 MWD+I FR-AK-CAZ-SC 3750.31 0.53 190.13 3653.66 3618.63 293.64 -534.10 6051192.09 506796.56 MWD+IFR-AK-CAZ-SC 3846.67 0.60 222.20 3750.01 3714.98 292.83 -534.52 6051191.27 506796.14 MWD+I FR-AK-CAZ-SC 3941.58 0.83 225.12 3844.91 3809.88 291.98 -535.34 6051190.42 506795.32 MWD+IFR-AK-CAZ-SC 4037.60 0.71 212.08 3940.93 3905.90 290.98 -536.15 6051189.42 506794.52 MWD+IFR-AK-CAZ-SC 4130.01 0.59 198.33 4033.33 3998.30 290.05 -536.60 6051188.49 506794.06 MWD+IFR-AK-CAZ-SC 4223.61 0.10 242.48 4126.93 4091.90 289.55 -536.83 6051187.99 506793.84 MWD+IFR-AK-CAZ-SC 4316.16 0.01 115.06 4219.48 4184.45 289.51 -536.89 6051187.95 506793.78 MWD+IFR-AK-CAZ-SC 4410.79 0.20 256.16 4314.11 4279.08 289.47 -537.04 6051187.91 506793.62 MWD+I FR-AK-CAZ-SC 4509.98 0.35 261.69 4413.30 4378.27 289.38 -537.51 6051187.82 506793.16 MWD+IFR-AK-CAZ-SC 4606.32 0.43 291.68 4509.63 4474.60 289.47 -538.14 6051187.91 506792.53 MWD+IFR-AK-CAZ-SC 4698.98 0.49 288.88 4602.29 4567.26 289.73 -538.84 6051188.17 506791.83 MWD+IFR-AK-CAZ-SC 4793.54 0.73 268.06 4696.85 4661.82 289.84 -539.82 6051188.28 506790.85 MWD+I FR-AK-CAZ-SC 4888.22 0.76 281.60 4791.52 4756.49 289.95 -541.04 6051188.38 506789.63 MWD+IFR-AK-CAZ-SC 4982.82 0.76 264.17 4886.11 4851.08 290.01 -542.28 6051188.44 506788.39 MWD+IFR-AK-CAZ-SC 5077.39 0.84 266.32 4980.67 4945.64 289.90 -543.59 6051188.33 506787.07 MWD+IFR-AK-CAZ-SC 5173.14 0.88 264.79 5076.41 5041.38 289.79 -545.03 6051188.22 506785.64 MWD+I FR-AK-CAZ-SC 5268.37 0.59 278.52 5171.63 5136.60 289.80 -546.24 6051188.23 506784.43 MWD+IFR-AK-CAZ-SC 5362.11 0.81 281.18 5265.37 5230.34 290.00 -547.37 6051188.43 506783.30 MWD+IFR-AK-CAZ-SC 5457.08 0.69 287.80 5360.33 5325.30 290.30 -548.57 6051188.73 506782.10 MWD+IFR-AK-CAZ-SC 5552.82 0.90 278.98 5456.06 5421.03 290.59 -549.86 6051189.02 506780.81 MWD+IFR-AK-CAZ-SC 5650.13 0.94 283.99 5553.36 5518.33 290.91 -551.39 6051189.33 506779.28 MWD+IFR-AK-CAZ-SC 5742.50 0.87 279.39 5645.71 5610.68 291.20 -552.82 6051189.63 506777 .85 MWD+I FR-AK-CAZ-SC 5838.45 0.90 285.28 5741.65 5706.62 291.52 -554.26 6051189.94 506776.40 MWD+IFR-AK-CAZ-SC 5933.63 0.92 270.06 5836.82 5801.79 291.72 -555.75 6051190.14 506774.92 MWD+IFR-AK-CAZ-SC 6029.19 0.89 275.14 5932.37 5897.34 291.79 -557.26 6051190.21 506773.41 MWD+IFR-AK-CAZ-SC 6124.59 1.01 281.97 6027.76 5992.73 292.03 -558.82 6051190.45 506771.85 MWD+IFR-AK-CAZ-SC 6219.51 1.10 278.33 6122.66 6087.63 292.33 -560.54 6051190.75 506770.13 MWD+IFR-AK-CAZ-SC 6315.42 0.84 276.40 6218.56 6183.53 292.54 -562.15 6051190.96 506768.52 MWD+IFR-AK-CAZ-SC 6410.31 0.93 300.91 6313.43 6278.40 293.02 -563.50 6051191.43 506767.17 MWD+IFR-AK-CAZ-SC 6506.05 1.25 310.88 6409.16 6374.13 294.10 -564.95 6051192.51 506765.71 MWD+IFR-AK-CAZ-SC 6600.56 1.17 312.58 6503.65 6468.62 295.43 -566.44 6051193.84 506764.22 MWD+I FR-AK-CAZ-SC 6697.39 1.15 310.55 6600.46 6565.43 296.73 -567.91 6051195.14 506762.75 MWD+IFR-AK-CAZ-SC 6791.93 0.95 310.83 6694.98 6659.95 297.86 -569.22 6051196.26 506761.44 MWD+IFR-AK-CAZ-SC 6887.33 0.80 330.84 6790.37 6755.34 298.96 -570.15 6051197.36 506760.51 MWD+I FR-AK-CAZ -SC 6979.16 0.80 320.71 6882.19 6847.16 300.01 -570.87 6051198.42 506759.80 MWD+IFR-AK-CAZ-SC 7076.80 0.65 318.11 6979.82 6944.79 300.95 -571.67 6051199.36 506758.99 MWD+IFR-AK-CAZ-SC 7169.48 0.77 312.90 7072.50 7037.47 301.77 -572.47 6051200.17 506758.19 MWD+IFR-AK-CAZ-SC 7268.60 0.89 316.67 7171.61 7136.58 302.78 -573.49 6051201.18 506757.17 MWD+IFR-AK-CAZ-SC ---- ____..__,__~_____l .. .. . Halliburton . Global -~.~ Company: Kerr McGee Date: 9/21/2005 Time: 14:55:06 Page: 3 Field: NW Milne Point Co-ordinate(NE) R.eference: Well: Tuvaaq State #1, True North Site: Wèst Milne Prospect Vertical (TVD) Reference: Tuvaaq Staté #1 35.0 Well: Tuvaaq State #1 Section (VS) Reference: Well (0.OON,0.00E,300.09Azi) Wellpath: Kigun#1 BP01 Survey Calculation Method: Minimum Curvature Db: Oracle Survey MD Incl Azim TVD Sys TVD N/S EIW MapN MapE Tool ft deg deg ft ft ft ft ft ft .~ 7363.68 0.69 326.18 7266.68 7231.65 303.79 -574.32 6051202.20 506756.34 MWD+IFR-AK-CAZ-SC 7459.11 0.74 337.40 7362.10 7327.07 304.84 -574.87 6051203.24 506755.78 MWD+IFR-AK-CAZ-SC 7554.28 0.58 353.74 7457.26 7422.23 305.89 -575.16 6051204.29 506755.49 MWD+I FR-AK-CAZ-SC 7649.62 0.50 358.27 7552.60 7517.57 306.78 -575.23 6051205.18 506755.43 MWD+IFR-AK-CAZ-SC 7745.30 0.46 346.95 7648.27 7613.24 307.57 -575.33 6051205.97 506755.33 MWD+IFR-AK-CAZ-SC 7840.16 0.49 344.40 7743.13 7708.10 308.33 -575.52 6051206.73 506755.13 MWD+IFR-AK-CAZ-SC 7934.15 0.77 347.4 7 7837.12 7802.09 309.34 -575.77 6051207.74 506754.89 MWD+IFR-AK-CAZ-SC 8027.39 0.63 348.34 7930.35 7895.32 310.45 -576.01 6051208.85 506754.65 MWD+IFR-AK-CAZ-SC 8124.85 0.73 355.28 8027.80 7992.77 311.60 -576.16 6051209.99 506754.49 MWD+IFR-AK-CAZ-SC 8220.06 0.77 359.71 8123.00 8087.97 312.84 -576.22 6051211.24 506754.43 MWD+IFR-AK-CAZ-SC 8314.60 0.85 355.91 8217.53 8182.50 314.17 -576.27 6051212.57 506754.38 MWD+IFR-AK-CAZ-SC 8413.00 0.29 17.47 8315.93 8280.90 315.14 -576.25 6051213.54 506754.40 MWD+IFR-AK-CAZ-SC 8508.13 1.14 6.37 8411.05 8376.02 316.31 -576.07 6051214.71 506754.57 MWD+IFR-AK-CAZ-SC 8604.24 1.15 6.45 8507.14 8472.11 318.22 -575.86 6051216.62 506754.79 MWD+IFR-AK-CAZ-SC 8700.04 1.20 5.72 8602.92 8567.89 320.17 -575.65 6051218.57 506754.99 MWD+IFR-AK-CAZ-SC 8795.38 1.43 14.38 8698.24 8663.21 322.32 -575.25 6051220.72 506755.39 MWD+IFR-AK-CAZ-SC 8891.16 1.70 11 .42 8793.98 8758.95 324.87 -574.68 6051223.27 506755.96 MWD+IFR-AK-CAZ-SC 8986.37 2.15 13.32 8889.14 8854.11 327.99 -573.98 6051226.39 506756.65 MWD+I FR-AK-CAZ-SC 9098.00 2.15 13.32 9000.69 8965.66 332.07 -573.02 6051230.47 506757.61 PROJECTED to TD ._~ . . Halliburton Global iEFINITIVE Company: Field: Site: Well: Wellpath: Kerr McGee NW Milne Point West Milne Prospect Tuvaaq State #1 Kigun#1 1izJ Date: 9/21/2005 Time: 14:56:30 Page: 1 Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Vertical (TVD) Reference: Tuvaaq State #1 35.0 Section (VS) Reference: Well (0.00N,0.OOE,300.66Azi) Survey Calculation Method: Mihímum Curvature Db: Oracle Field: NW Milne Point Map System:US State Plane Coordinate System 1927 Geo Datum: NAD27 (Clarke 1866) Sys Datum: Mean Sea Level Map Zone: Coordinate System: Geomagnetic Model: Alaska, Zone 4 Well Centre bggm2004 Well: Tuvaaq State #1 Slot Name: Well Position: +N/-S 0.00 ft Northing: 6050899.00 ft Latitude: 70 33 1.036 N +E/-W -0.10 ft Easting : 507330.90 ft Longitude: 149 56 23.621 W Position Uncertainty: 0.00 ft - Wellpath: Kigun #1 Drilled From: Tuvaaq State #1 50629232397000 Tie-on Depth: 1837.51 ft Current Datum: Tuvaaq State #1 Height 35.03 ft Above System Datum: Mean Sea level Magnetic Data: 3/9/2005 Declination: 24.32 deg Field Strength: 57593 nT Mag Dip Angle: 80.87 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 33.28 0.00 0.00 300.66 Survey Program for Definitive WeIlpath Date: 4/6/2005 Validated: No Version: 3 Actual From To Survey Toolcode Tool Name ft ft 138.28 1837.51 Tuvaaq State #1 (138.28-17593.34) (4) MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC 1913.00 2712.94 Kigun#1 (1913.00-2712.94) MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC Survey MD IncI Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft - 33.28 0.00 0.00 33.28 -1.75 0.00 0.00 6050899.00 507330.90 TIE LINE 138.28 0.11 87.11 138.28 103.25 0.01 0.10 6050899.01 507331.00 MWD+I FR-AK-CAZ-SC 223.96 1.13 299.44 223.95 188.92 0.42 -0.55 6050899.42 507330.35 MWD+IFR-AK-CAZ-SC 318.37 1.87 297.45 318.33 283.30 1.59 -2.73 6050900.59 507328.17 MWD+IFR-AK-CAZ-SC 408.54 3.27 292.46 408.41 373.38 3.25 -6.41 6050902.25 507324.48 MWD+I FR-AK-CAZ-SC 438.47 3.36 294.60 438.29 403.26 3.94 -8.00 6050902.94 507322.90 MWD+IFR-AK-CAZ-SC 529.32 5.11 295.86 528.89 493.86 6.82 -14.06 6050905.80 507316.83 MWD+IFR-AK-CAZ-SC 624.92 8.01 298.28 623.85 588.82 11.83 -23.76 6050910.81 507307.13 MWD+IFR-AK-CAZ-SC 715.56 8.98 298.63 713.50 678.47 18.21 -35.53 6050917.18 507295.35 MWD+IFR-AK-CAZ-SC 831.85 12.98 290.88 827.64 792.61 27.22 -55.71 6050926.16 507275.17 MWD+I FR-AK-CAZ-SC 892.84 12.91 290.45 887.08 852.05 32.04 -68.49 6050930.97 507262.38 MWD+IFR-AK-CAZ-SC 986.85 14.23 295.11 978.47 943.44 40.62 -88.80 6050939.52 507242.07 MWD+IFR-AK-CAZ-SC 1075.73 15.94 294.77 1064.28 1029.25 50.37 -109.77 6050949.25 507221.09 MWD+I FR-AK-CAZ-SC 1171.70 17.27 295.43 1156.25 1121.22 62.00 -134.60 6050960.86 507196.25 MWD+IFR-AK-CAZ-SC 1266.92 20.30 296.02 1246.38 1211.35 75.32 -162.22 6050974.15 507168.62 MWD+IFR-AK-CAZ-SC 1362.45 22.58 296.48 1335.30 1300.27 90.77 -193.53 6050989.57 507137.30 MWD+IFR-AK-CAZ-SC 1456.21 22.69 298.60 1421.84 1386.81 107.46 -225.52 6051006.22 507105.30 MWD+IFR-AK-CAZ-SC 1551.61 21.96 296.49 1510.09 1475.06 124.22 -257.64 6051022.95 507073.16 MWD+IFR-AK-CAZ-SC 1646.38 21.23 297.30 1598.20 1563.17 139.99 -288.75 6051038.69 507042.04 MWD+IFR-AK-CAZ-SC 1741.64 19.69 297.07 1687.45 1652.42 155.21 -318.37 6051053.88 507012.41 MWD+IFR-AK-CAZ-SC 1837.51 20.72 296.39 1777.42 1742.39 170.10 -347.94 6051068.74 506982.83 MWD+IFR-AK-CAZ-SC 1913.00 21.68 295.42 1847.80 1812.77 182.02 -372.50 6051080.63 506958.26 MWD+IFR-AK-CAZ-SC 1964.10 23.26 299.04 1895.02 1859.99 190.97 -389.85 6051089.56 506940.90 MWD+IFR-AK-CAZ-SC 2056.07 20.78 302.03 1980.28 1945.25 208.44 -419.56 6051107.00 506911.18 MWD+IFR-AK-CAZ-SC 2144.97 18.83 305.57 2063.92 2028.89 225.15 -444.60 6051123.69 506886.12 MWD+IFR-AK-CAZ-SC 2243.45 17.11 310.38 2157.60 2122.57 243.78 -468.57 6051142.30 506862.14 MWD+IFR-AK-CAZ-SC 2336.04 14.99 316.03 2246.58 2211.55 261.23 -487.26 6051159.72 506843.43 MWD+IFR-AK-CAZ-SC 2429.99 13.43 316.57 2337.65 2302.62 277 .90 -503.20 6051176.37 506827.48 MWD+IFR-AK-CAZ-SC 2524.95 11.68 315.72 2430.34 2395.31 292.79 -517.49 6051191.25 506813.17 MWD+IFR-AK-CAZ-SC ~D )-", ~ ).¡l- , ~ Company: Field: Site: Well: Wellpath: -- Kerr McGee NW Milne Point West Milne Prospect Tuvaaq State #1 Kigun #1 Survey MD Incl Azim ft deg deg 2618.53 9.69 316.22 2712.94 9.26 315.75 2794.00 9.26 315.75 . TVD Sys TVD ft ft 2522.29 2487.26 2615.41 2580.38 2695.42 2660.39 Halliburton Global . Date: 9/21/2005 Time: 14:56:30 Page: 2 Co-ordinate(NE) Reference: Wéll: Tuvaaq State #1 , True North Vertical (TVD) Reference: Tuvaaq State #1 35.0 Section (VS) Reference: Well (0. OON, O. OOE ,300. 66Azi) Survey Calculation Method: Minimum CurvatUre Db: Oracle N/S E/W MapN MapE Tool ft ft ft ft 305.26 -529.55 6051203.70 506801.10 MWD+I FR-AK-CAZ-SC 316.44 -540.35 6051214.87 506790.29 MWD+I FR-AK-CAZ-SC 325.78 -549.45 6051224.20 506781.18 PROJECTED to TD . . MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg '~, <1 (I (ð;- P. I. Supervisor l{ DATE: March 26, 2005 FROM: John Crisp, Petroleum Inspector SUBJECT: Cement Plug Tag Kigun #1 Exploratory Kerr-McGee Corp. PTÐ'~025 March 26, 2005: I traveled to Kerr-McGee's exploratory well Kigun #1 to witness the Open Hole Cement Plug tag for permanent abandonment. I arrived on location to witness Nabors 27E RIH w/5" DP Muleshoe to tag open hole permanent abandonment plug. Hard cement was witnessed tagged @ 6338' MD w/15K indicator weight while / circulating 3 BPM. Plug was verified by tagging 3 times w/15K. Summary: I witnessed an open hole permanent abandonment cement plug on Kigun #1tagged @ 6338' MD. Attachments: None Confidential Cement Plug Tag Kigun #1 03-26-05 jc.doc Kigun Weekly Report 3 e e Subject: Kigun Weekly Report 3 From: "Coyner, Skip" <Skip.Coyner@asrcenergy.com> Date: Fri, 25 Mar 2005 06:57:42 -0900 To: Thomas Maunder <tom_maunder@admin.state.ak.us> Weekly Report on Kigun # 1 - Nabors rig March 25th, 2005 Weekly Operations Report No.3 Kigun #1 APD No.: 205-025 3/18/05 3/19/05 3/20/05 3/21/05 3/22/05 3/23/05 3/24/05 lof2 4,525' MD / 4,428' TVD Finished running OBMI log., RIH with MDT tool on drill pipe. Took pressures and attempted to collect fluid s~ples. 4,525' MD / 4,428' TVD Continued running MDT on drill pipe. Collected water sample from Prince Creek formation. Could not get fluid sample from NB sand. POOH. RID E-Line. RIH. Circ & Condo POOH to run casing. 4,525' MD / 4,428' TVD C/O rams to 9-5/8". Tested BOPE. RIU & ran 9-5/8" casing as programmed. Shoe at 4505' MD. Cemented 9-5/8" casing as programmed. Landed mandrel hanger. Set & tested packoff. 5,169' MD / 5,072' TVD Tested BOPE. RIH with Bit & BHA. Tested casing to 2500 psi. Drilled out shoe track *20' of new hole. LOT = 21.2 ppg. Drilled 20 additional feet. LOT = 21.2 ppg. Drilled ahead to 5169' MD. MW = 10.2 ppg. 7282' MD / 7185' TVD Drilled Ahead to 5738'. Serviced Top Drive. Drilled ahead to 6690'. Made 4 Stand Wiper Trip, hole slick. Drilled ahead to 7782' and ruptured shock hose from mud pump. Repaired Shock hose. 7988' MD / 7891' TVD Finished repairing shock hose. RIH to 7072' and washed to TD at 7282'. Drilled from 7282' to 7837'. Repaired washed out O-Ring in Standpipe union. Drilled from 7837' to 7988' 9098' MD / 9000' TVD Drilled from 7891' to 9098' MD and circulated bottoms up. Pumped sweep around and POOH to BHA. LD BHA. Hole slick. 3/25/20057:14 AM , March 18t\ 2005 Weekly Operations Report No.2 Kigun #1 APD No.: 205-025 3/11/05 3/12/05 3/13/05 3/14/05 3/15/05 3/16/05 3/17/05 2,794' MD /2,694' TVD Drilled ahead to 2794' MD. Stuck the DP on connection. Jarred free. POOH: left the bit, mud motor & stabilizer in the hole. RIH with a screw-in sub. Washed down to the fish. Unable to screw in. POOH. RIH with overshot. Engaged and burned over fish. Could not jar it loose. Could not release overshot. W/O E- . ~ Line. Backed off fishing string. CBU. POOH. Left overshot & bumper sub in ~ , the hole. RIH with OEDP and spotted cement plug 2700' - 2400' MD. POOH. ~O'~ 2,794' MD / 2,694' TVD RIH with overshot. Engaged and burned over fish. Could not jar it loose. Could not release overshot. W /0 E- Line. Backed off fishing string. CBU. 2,781' MD /2,682' TVD POOH. Left overshot & bumper sub in the hole. RIH with OEDP and spotted cement plug 2700' - 2400' MD. POOH. Test BOPE. RIH with 12-1/4" bit & BRA. Sidetracked and drilled to 2781' MD /2682' TVD. 3,766' MD /3.669' TVD Drilled ahead to core point at 3766' MD. CBU. Wiper trip. CBU. POOH. 3,826' MD /2,729' TVD Down loaded LWD's. PIU coring BRA. RIH. Cored 3766' to 3826' (60'). POOH. Recovered 46.5 ft of 60' cut. LID core and coring tools. 4.545' MD /4,428' TVD RIR and drilled to casing point at 4545' MD. Conditioned the hole for logs. Wiper trip. Worked through ledges, etc. at 2700' MD. 3,826' MD /2,729' TVD Continued to work through ledgeslbridges. RIH to bottom. CBU. POOH. RIU E- Line. Rand quad-combo log. Ran OBMI log. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6370 e March 11 t\ 2005 Weekly Operations Report No.1 Kigun #1 APD No.: 205-025 3/09/05 1,948' MD /1.880' TVD EZSV set in the 13-3/8" casing at 1948' MD. OBM WT = 9.6 ppg. P/u Baker 13-3/8" whipstock and bottom-trip anchor. RIH with MWD and DC's on 5" DP. Set the whipstock. Sheared off. Started milling the window. Phase II 3/10/05 2,497' MD / 2,409' TVD Finished milling window in 13-3/8" casing: 1913' - 1933' MD. Drilled 20' of new hole. CBU. LOT = 14.5 ppg EMW. POOH. LID mills, etc. Washed out BOP's. RIH with 12-114" bit and BHA. Drilled to 2497' MD. MW = 9.7 ppg. Phase I/II. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6370 ~. í'r/Æ.. Y'? . !! '£1 ¡I I!::, Ii. Ii ¡l ~ .¡"".,¡ ~ . ® rc I~ \.!:;U J u-D ([ù ~ ~ m /JJ\ ¡ ¡¡ \ i.J u . c2tJ5 -0;(5 , < AI#ASIiA. OIL AlU) GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Stuart Boggan Drilling Manager Kerr McGee Oil & Gas Corporation 3900 C Street, Suite 744 Anchorage, AK 99503 Re: Kigun #1 Sundry Number: 305-077 Dear Mr. Boggan: 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. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on liday or weekend. A person may not appeal a Commission decision to Supe . r Co unless rehearing has been requested. DATED iliiS~ of March, 2005 ~. Enc!. . STATE OF ALASKA RECE'V~ r)~ }. ALA: Oil AND GAS CONSERVATION COM.ON r' . ....¡J-:; APPLICATION FOR SUNDRY APPROVAL MAR 2 5 200~ Þ:::r '6'Ç 20 MC 25.280 . .~.~ Operational shutdown U Perforate U AlaskaJ)Å\.~s Cons. Cor~ 0- Plug Perforations 0 Stimulate D Time Extension~horage ~ Perforate New Pool 0 Re-enter Suspended Well D S 4. Current Well Class: 5. Permit to Drill Number: Abandon LJ Alter casing D Change approved program D 2. Operator Name: Kerr McGee Oil & Gas Corporation 1. Type of Request Suspend U Repair well 0 Pull Tubing 0 3. Address: 3900 C Street, Suite 744, Anchorage, AK 99503 7. KB Elevation (ft): 38 ft 8. Property Designation: ADL: 0355024 Development Stratigraphic o D 6. API Number: 50-629-23239-01 Exploratory [] Service D 205-025 9. Well Name and Number: Kigun #1 10. Field/Pools(s): Exploration PRESENT WELL CONDITION SUMMARY Depth MD (ft): EffeCtiVe Depth TVD (ft): Size MD TVD IJUnk (measured): N/A Collapse 12. Attachments: Description Summary of Proposal U 13. Well Class after proposed work: Detailed Operations Program [] BOP Sketch D Exploratory [J Development 14, Estimated Date for 15. Well Status after proposed work: Commencing Operations: Oil D Gas 0 16. Verbal Approval: Dath. 3/25/2005 WAG D GINJ 0 Commission Representative: Tom Maunder ~~ =3¡~s-oç 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Printed Name Stuart Bog~ Title Drilling Manager Signature ~ I. b~ Phone 907-339-6370 Date ó' (J COMMISSION USE ONLY Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Proposed 3806 to 3807 Packers and SSSV Type: Length 75 ft 2953 ft 8891 ft N/A N/A perfOration Depth TVD (ft): 3709 to 3710 20" 13-3/8" 9-5/8" N/A IPlugs (measured): N/A Burst 113ft 2991 oh ft 1913 ST 4505 ft 113ft 2730 oh ft 1847 ST 4408 ft 5020 psi 5750 psi 2260 psi 3090 psi Tubing Size: Tubing Grade: N~ N~ Packers and SSSV MD (ft): ITubing MD (ft): N/A N/A D D Service Plugged WINJ [J o Abandoned WDSPL [] D Contact Skip Coyner: 907-339-6269 25 Mar, 2005 SUndry Number: 305"'- t!) 77 Conditions of approval: Notify Commission so that a representative may witness Plug Integrity ~ BOP Test D Mechanical Integrity Test 0 Location Clearance ~ Olhe' <c.-~t I:"'?~~~'\o.~ ot \'\,,~~ :;¡ t \>'o.~",-\ o-\-Sv~Œ:.p "5 RBDMS 8Ft. MAR 2 9 2005 Form 10-403 Revised 11/2004 COMMISSIONER APPROVED BY THE COMMISSION ~~¿ Date: L Submit in Duplicate . . Kigun #1 p &A Jim Mosley 3/25/2005 FORMATIONS DEPTH (DF) CASING MUD INFO MARKERS I HOLE I EQUIPMENT MD I TVD SIZE SPECS CEMENT INFO INFO I CEMENT PLUG # 5 Wellheads 20" CUT @ 5' BML 10.25 BBLS of that were "G" Cement + 2% CUT OFF 129.33 #, X-56 Calcium Chloride 13-5/8" 5M Welded I Driven 21-1/4" 3M 13-3/8" Cut @ 10' BML Surface CSG 13-3/8" Kigun # 1 was 68 Ib/tt Sidetracked from L-80, BTC Tuvaaq State # 1 In!. Yield 5020 psi at a depth of Collaspse 2260 psi Base Permafrost 1,755' 1,700' 1913 feet 9-5/8" 40# L80 @ 4505' 9-5/8" Cut @ 15' BML Cut & Pull 9-5/8" -", 1.,/3<:1.71 ':\ ;}";:~'::; EZSV for Whipstock 1,940' 1,873' Intermediate 9-5/8" 40 Ibsltt T/Ugnu 2,929' 2832 10 ppg Water L-80, BTC-M Based Mud In!. Yield 5750 psi Schrader Bluff 3,491' 3,394' Collaspse 3090 psi Down Squeeze OA Sand 3,777' 3,680' 50 Ft of Cmt on tOD of Cement PluG #4 EZSV Set (â! 3700'MD Premium Cement DST 20.5 bbls Test 9-5/8" Colville Mudstones 3,824' 3,727' PERFS 156 sx Casing & EZSV 1 Ft of 15.8#,1.15 cf/sx to 1500 psi OA SAND 50 FEET OF CEMENT Down Squeeze ON TOP OF EZSV Cement PluG #3 9-5/8",40# EZSV 4,410' 4,313' EZSV SET @ 4410' MD Premium Cement 20.5 bbls CEMENT PLUG = 200 FEET 156 sx 4,605' 4,508' BELOW EZSV 15.8#,1.15 cf/sx 25% Excess in Open Hole 10.7 ppg OBMud Top of Balanced PI~gs 2 7,400' 6,303' OPEN HOLE PLUG Tag Plug #2 HRZ 6,508' 6,411' FROM 7400' MD to 6400' MD with 10000# 2 Cement PluGs: LCU 6,815' 6,718' 1000 tt each Nuiqsut Sd 6,878' 6,781' Premium Cement Lower Kingak 6,949' 6,852' 84 bbls each 10.7 ppg OBMud 410 sx Top of Balanced Plug 1 8,098' 15.8# Sag River Sd 8,360' OPEN HOLE PLUG FROM 1.15 cf/sx Shublik 8,477' 9098' MD to 8098' MD 25% Excess Ivishak 8,788' Both Plugs Set in . . KIGUN # 1 P&A PROPOSAL 6. 7. 8. 9. Notify AOGCC of imminent P&A. Run in hole open ended and set balanced cement plug from 9000' TD to 8000'. 87.8 bbls - 430 Sks Premium Cement + .2% CFR-3, (Friction Reducer), + 0.25% Halad-344 ( Fluid Loss Additive), + .55% HR-5 (Retarder). Mixed at 15.8 ppg, 1.15 cuft/sk yield, 53Æa1s/sk mix water (Volume based on 1000' 8-112" open hole + 25% excess) Pull out of cement and up the hole to 7400 feet where the second plug will be set. Circulate 1.5 bottoms ups and prepare to cement. Set 1000 foot balanced cement plug from 7400' to 6400'. 87.8 bbls - 430 Sks Premium Cement + .2% CFR-3, (Friction Reducer), + 0.25% Halad-344 (Fluid Loss Additive), + .25% HR-5 (Retarder). *Mixed at 15.8 ppg, 1.15 cuft/sk yield, 5.0 gals/sk mix water (Volume based on 1000' 8-112" open hole + 25% excess) ./ *Note: Thickening time tests are currently running. IfTTT is greater than 4 hours - slightly densify cement and mix at 16.0-16.2 ppg) Pull out of cement and up the hole to 5900 feet (500' above cement). Circulate 1.5 bottoms ups and slug pipe for trip out of hole. Pull out of hole laying down approximately 3000 feet of excess drill pipe. WOC a t.otal of 6 hours prior to taggin9- plug at 6400'. Make up and Stand back Casing Cutting tools while WOC. NCÅ"+r Þ\.ûC::>C<- \-0 ~\\~"'>s RIH and tag plug with 10000 #' s. Obtain witness or waiver of witness from State AOGCC Representative. Pull out of hole and pick up EZSV on drill pipe. Run in the hole with EZSV and set same on drill pipe at 4410 feet Establish injection into fonnation and prepare to cement. Mix and pump 200 feet of cement below the EZSV and pull out of EZSV. Dump 50 feet of cement on top of EZSV. 20.5 bbls - 100 Sks Premium Cement + .2% CFR-3, (Friction Reducer), + 0.25% Halad-344 (Fluid Loss Additive), + .15% HR-5 (Retarder). Mixed at 15.8 ppg, 1.15 cuft/sk yield, 5.0 gals/sk mix water (Volume based on 50ft 9-518" casing above EZSV + 95 ft casing belowfiZSV + 100 ft 8-112" open hole + 25% excess - 98 sacks rounded to 100) J Pull up the hole 60 feet and reverse out. Displace oilbase mud out of hole with conditioned water base mud. NB : Baroid to take 1 litre WBM sample for KM Engineer. Begin Cleaning pits as available. Test Casing to 1500 psi. for 30 minutes Pump dry job and lay down approximately 2000 feet of excess drill pipe. Pull out of hole and prepare to rig-up Schlumberger for sampling work. Install Schlumberger shooting nipple and 5000 psi pack-off Install Shooting Nipple in Hydril. RIH with USIT/CBL, log from 4,000ft. No pressure will be applied while logging. Select perf interval and RIH with 1ft guns loaded with 4-112" 6 SPF Powerjet 4512 HMX 22g charges. Correlate on depth and shoot OA sand as directed. Check for well pressure or losses and POOH. 10. 1. 2. 3. 4. 5. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. P&A PROPOSAL FOR KIGUN # 1 3/25105 by Jim Mosley for Nabors 27E. . . 25. Rig up MDT tool and run in hole. 26. Continue cleaning pits as appropriate. 27. Begin staging equipment to next location. 28. Straddle the perfs with MDT packers 29. Take samples from OA sand as directed 30. Release MDT tool and POOH with same. 31. Confirm sample content and quality prior to rigging down E-line. 32. Pick up EZSV and RIH on Drill pipe to 100 feet above the OA perfs 33. Set EZSV and Establish injection rates into the OA Zone. 34. Cement OA Zone Perforations with 100 sxs of cement and unsting from EZSV. Dump 50 feet of cement on top of EZSV. 20.5 bbls - 100 Sks Premium Cement + .2% CFR-3, (Friction Reducer), + 0.25% Halad-344 (Fluid Loss Additive), + .15% HR-5 (Retarder). Mixed at 15.8 ppg, 1.15 cuftlsk yield, 5.0 gals/sk mix water (Volume based on 50ft 9-5/8" casing above EZSV + 95 ft casing below EZSV + 100 ft 8-1/2" open hole + 25% excess - 98 sacks rounded to 100) "./ 35. Test EZSV and Casing to 1500 psi for 30 minutes. 36. Pull out of hole laying down excess drill pipe. 37. Pick UP casing cutting tools 38. Cut 9-5/8" Casing at 15 feet BML and lay down cut piece 39. Redress casing cutting tools for 13-3/8" and RIH to Cut 13-3/8" Casing at 10' BML and lay down cut piece 40. Cut 20" Casing at 6' BML and lay down cut piece 41. Run in hole with drill pipe to 200 feet below mud line. 42. Set a thick pill 200+ visc to hold top cement plug 43. Pull up hole to 100 feet below mud line 44. Cement to 5' below mud line. 10.25 bbls - 60 Sks Premium Type C Penna Frost Cement. Mixed at 15.6ppg, 0.99 cuftlsk yield, 5.0 gals/sk mix water (Volume based on 90ft 9-5/8" casing, 5 ft of 13-3/8" Casing, and 5 ft of 20" Casing with top of cement 5 feet below mud line. 45. Lay down remaining Drill pipe. <...C:. ~~CA..t... ~ 1:.~~~,- \o,.~,ç\ ~ \ n \(), 46. Pull cellar. 'f) 47. Rig Down and Move out. . 48. Clean and Clear location of all debris, Scrape pad and haul scraped ice out as needed. 49. Obtain Location Clearance from DNR, DEC, AND AOGCC ATTACHMENTS Sundry Notice P&A Diagram KM Schematic CC: Stuart Bogan, Andy Stewart, Tom Maunder, Nabors 27, Skip Coyner, File P&A PROPOSAL FOR KIGUN # 1 3/25/05 by Jim Mosley for Nabors 27E. Top EZSV #2 @ 3700' 4000' Cement Cased Hole DST 4 C @ 3650' Perfs in OA ~ Set@ 9-5/8", 40#, l-80, 4410' MD. 4505' MD (4408' TVD) Cement 5000' 3, I 100' Below I Notes: Proposed Plugging 1 I I Plug # 1 from 9000' to 8000' I I Plug # 2 from 7400' to 6400' IMUD! Plug # 3 from 4605' to 4360' I I 6000' I I Plug # 4 from OA Sand DST I I Plug # 5 from Cut Off Stubs to Cement Plug # 2 From 7400' to 7000' 6400'. Tagged with 8-1/2" Hole 10000# weight I I I I I 8000' 'MUD1 1900' I I · Set a Baker window in the Cement · Drilled Plug # 1 · Left fish in · Dropped 9000' to 8000' TD 9000 FEET IN 8-1/2" Hole Surf I Rig RKB = 38 ft I 2000' Cement Plug # 5 From 5' BML to 100' BML Casing Stubs 9-5/8" @ 15' BMl 13-3/8" @ 10' BML 20" @ 6' BMl 1000' 13-3/8",68#, l-80,BTC Window at 1913' MD, 1847' TVD 3000' Hole · March 25th, 2005 RECEIVED MAR 2 5 2005 Commissioner Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Alaska Oil & Gas Cons. Commission Anchorage Re: Kigun #1: APD 205-025 Kerr McGee Oil & Gas Corporation Application for Sundry Approval to Plug and Abandon Attached for your review is our Application for Sundry Approvalto plug and abandon the captioned well. Fonn 10-403 and exhibits are attached. Please be advised that Kerr McGee plans to pennanently plug the bottom of the hole, and then run a Cased hole MDT inside the 9-5/8" Casing and then continue to pennanently plug and abandon the well. The attached procedure outlines the steps we will take to achieve this objective. After the MDT has been run (USIT/CBL Contingent) and evaluated, the Kigun # 1 a sidetrack of the mother-bore [Tuvaaq State #1] will be properly plugged and abandoned as per the attached documents. At that time, the casing strings will be cut and recovered below the mud line as required. The Kigun #1 reached TMD is morning. We have pulled out of the hole and have obtained Partner approval to P&A. We are presently running in the hole with open ended drill pipe to start plugging the well. As such, we request approval of this Sundry Proposal as soon as possible. Thank you. Sincerely, i;;;,sley for Skip Co ner ASRC Energy Services Project Drilling Supt. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6269 DATE, TIME FAX NO./NAME DURATION PAGE(S) RESULT MODE . ~~ JOB STATUS REPORT .., 03/25 15:58 7432968 00:03:35 07 > ~~ ANDARD ECM ----iÞ <:i()~\-'\ ,,~1 . TIME 03/25/2005 16:02 NAME AOGCC FAX# 9072767542 TEL# SER.# BR02J2502370 . . ($. OILi\N:~ '..J:.t::>, ,\ ' ~\\~:: ~~; 8·"1 ~.i~Ii4·. ,·~7.;lk~'.. ~ ~. .'. v ~ ..,,~ . ~<.;; .~~ ·~t';~'" ~l'lON CO~ Alaska Oil and Gas Conservation Commission 333 West 7th A venue, Suite 100 Anchorage, AK 99501-3539 Phone: (907) 279-1433 Fax: (907) 276-7542 Fax Transmission The information contained in this fax is confidential and/or privileged. This fax is intended to be reviewed initially by only the individual named below. If the reader of this transmittal page is not the intended recipient or a representative of the intended recipient, you are hereby notified that any review, dissemination or copying of this fax or the information contained herein is prohibited. If you have received this fax in error, please immediately notify the sender by telephone and return this fax to the sender at the above address. Thank you. To: ,,¿\~ S0~''-.)\~~· NC\.'-o~~~ d l E From: \ô~~-")~Q..r Phone #: (~ <:>-l"d- 5 Q Pages (including Ò Subject: ~~. ~~~'0J.. \ cover sheet): 6 M~~: ~ ~~~\"?-\~ \\':I<-~\\"¡" ~'0\<Ð~ mrr-( ~ ~ ~~<J ?t~ D-\c'é\~û~~~. ?$P1-\'":> <'\~.'~ ~rl-~ ~/ '\b<:>\( ~'M.?\\~~eÅ O-~\"'-\'tS~h,\ 'í::,..J",.5Ð -\-I.r--..t \'>7 S '\. ~ \o..~.. ?\(i:pL S2- CO"--~L-\-~ ~~ '->.)\k'=>,,> -\~ ~ ~,6U-.'Eoá-~i-he S'.')~C1S ~\~. þ~~ '.. 0~~-~\~U Fax#:' ~ \ \'S "Jç'\ ~ ~ Date: tJ\<Á'. d'S (~êX.) ç c~t4J GLCi~~-\ör-- -;- Jt~~~~l' ~ If you do not receive all the pages or have any problems with I this fax, please call for assistance at (907) 793-1223. Re: FW: P&A Proposal e . Subject: Re: FW: P&A Proposal From: STMaunder@aol.com d()s 0""'" c Date: Fri, 25 Mar 2005 00:31 :05 EST - C7 .::> To: Skip.Coyner@asrcenergy.com CC: Iou _grimaldi@admin.state.ak.us, jeff jones@admin.state.ak.us, john _ spaulding@admin.state.ak.us, john _ crisp@admin.state.ak.us, chuck _ scheve@admin.state.ak.us Jim, Your plan is acceptable, however as we discussed the top open hole plug needs to be tagged. Please have the rig stay in touch with the Inspectors. Tom Maunder, PE AOGCC Re: FW: P&A Proposal.eml 1 of 1 3/25/20057:12 AM P&A Proposal e . Subject: P&A Proposal From: "Coyner, Skip" <Skip.Coyner@asrcenergy.com> Date: Thu, 24 Mar 2005 19:31:22 -0900 To: Thomas Maunder <tom_maunder@admin.state.ak.us> d-oS-Oð-S Tom, Please look this over and see if it will be sufficient to meet with your requirements. It is a draft and I will ask for your indulgence while I get all of the appropriate parties to agree that this is what we are doing. I have attached a powerpoint picture of what the PM will look like after we are finished with the Cased hole MDT work. The Prog doesn't address specific volumes, sacks, or blends, but it will tomorrow. Thanks sincerely, Jim Mosley for Skip Coyner 907-339-62690fc 907-748-3689 cell PAPROG.doc Content-Description: KIGUN1 P&A PROG.doc Content-Type: application/msword Content-Encoding: base64 As Drilled PROPOSED C t t D . t· . Kigun As Drilled & PROPOSED on en - escrIp Ion. P&A.ppt Content-Type: application/octet-stream Content-Encoding: base64 I of I 3/25/20057:19 AM . . ¿¡ujJ¡¡~ßmË;" ¡~jI!t1j!}¡¡J:¡j§m" ¡jJr,;r.!f.fjlH~ Kerr-McGee tests Schrader Bluff oil By OGJ editors HOUSTON. Mar. 15 - Kerr-McGee Oil & Gas Corp. has tested as mucih as 1.200 bid of 16°-17° gravity oil from the Schrader Bluff reservoir in its Nikaitchuq-4 horizontal appraisal well on Alaska's North Slope. \..--.. d-.04 - J-CøO Kerr-McGee operates the Nikaitchuq prospect and holds a 70% interest. Armstrong Alaska Inc. holds a 30% stake. r~ dO ~ - ~ '-\ c; Kerr-McGee encountered the same Schrader Bluff interval in its Tuvaaq exploration well, 3 miles west of Nikaitchuq-4. It is drilling the Kigun side,track to ~ òlO S _()~ earn additional acreage. After completion. Kerr-McGee will operate the well with a 55% working interest. dO~-Q~1s~ Kerr-McGee has increased its stake to 82% in and become operator of Tuvaaq by acquiring an additional 40% working interest from Pioneer Natural Resources. ~ ~'-\....(:)\. '& ~ J.. 0 S -QC \ Also during the 2005 Alaskan drilling season, Kerr-McGee is drilling the Nikaitchuq-3 horizontal appraisal well to test the Sag River formation. In 2004, the Nikaitchuq-1 vertical well tested more than 960 bid of 38° gravity oil from the Sag River, and Nikaitchuq-2, drilled 9,000 ft southeast of the discovery well, extended the discovery downdip (OGJ. Sept. 20. 2004, p. 34). Earlier this year, Kerr-McGee acquired a 50% working interest and will operate the Ataruq prospect in Alaska, where It will drill an initial exploration well following the appraisal drilling at Nikaitchuq. lof2 3/17/2005 10:41 AM Kigun # 1 / Kerr McGee . . Subject: Kigun #1 / Kerr McGee From: "Coyner, Skip" <Skip.Coyner@asrcenergy.com> Date: Sun, 13 Mar 2005 10:17:00 -0900 To: "tom _ maunder@admin.state.ak.us" <tom _ maunder@admin.state.ak.us> S ,,- ðO-Od--~ We got stuck Friday, jarred loose and POOH wlo the mud motor & bit. We tried to make a screw in while waiting on fishing tools wlo success. Saturday am, we engaged an overshot but could not jar free. Also could not release the overshot. WIO Schlumberger. Backed off between bumper sub & oil jars. POOH. LID BHA. R1H wI OEDP and spotted 300 sx class G plug + 2% CaCla 2700' - 2300' MD. Preparing to drill around the junk: bit MIM, 1BS, Bumper sub. Skip Coyner 907-339-62690fc 907-748-3689 cell 1 of 1 3/14/2005 10:05 AM "..' 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KERR-MCGEE CORPORA nON February 15th, 2005 Commissioner Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 '1 .. ~"J('C::; . ~j lL ÛJ Re: Kigun #1 Kerr McGee Oil & Gas Corporation Application for Permit to Drill (10-401) Attached for your reVIew is our Application for Permit to Drill the Kigun #1 delineation well located approximately four (4) miles north-northwest of Oliktok Point. The Kigun #1 will use the Tuvaaq State #1 location and surface casing to a depth of 1900' MD ./ (1836' TVD) where the well will be sidetracked using a whipstock. This original APD is submitted along with one (1) copy and the $100.00 filing fee. The APD packages include form 10-401, an abnormal pressure analysis, a comprehensive drilling hazard analysis, drilling program, directional drilling plan, drilling mud program, plats, graphs and diagrams as required. The package includes an "As Staked" location plat. The surface location issue was addressed previously with both DNR and KRD. The Kigun #1 is being drilled to earn acreage currently included in the KRD. Our anticipated spud date for Kigun #1 is on or about March 5th, 2005 depending on our progress drilling Tuvaaq State #1. If you have any questions or concerns about the APD or the drilling plan, please call me at 339-6269 and I will do my best to address your questions or concerns. Your timely review of our APD and the accompanying data is greatly appreciated. Sincerely, s&r ASRC Energy Services Project Drilling Supt. 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 ¡ ....\ ¡ (,'" . j "". L (907)-339-6370 _ STATE OF ALASKA . ~SKA OIL AND GAS CONSERVATION MISSION PERMIT TO DRILL 20 MC 25.005 1~~~a~~;::~ti;;~~~laÕ ~:~~;:tOry ËJ d:J!!j~~~:,~~~i8'i~~:,~~~:ê!;;8 5. Bond: Blanket 0 Single Well D 11.'WeIÎÑame and Number: Bond No. 3-798-381 Kigun #1 6. Proposed Depth: 12. Field/Pool(s): 3900 C Street, Ste 744, Anchorage, AK 99503 MD: 9,295 TVD: 9,200 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 1724' FSL & 500' FEL Sec. 24, T14N, R8E UM ,/ Kuparuk River Unit 1 ADL 0355024 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1930' FSL & 869' FEL Sec. 24, T14N, R8E UM 3/05/2005 Total Depth: ¡ 9. Acres in Property: 14. Distance to Nearest 2039' FSL & 1039' FEL Sec. 24, T14N, R8E UM ADL 0355024 includes 5580 acres Property: 3241' FNL .' 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface:x- 507331 y- 6,050,899 / Zone- 4 1:> (Height above GL): 38 feet { Within Pool: 14,800' ./ 16. Deviated wells: Kickoff depth: I~et ~(f.o~ Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 23 degrees Downhole: 4264 psi Surface: 3348 psi Setting Depth Quantity of Cement c.f.orsacks ¡mr'n 1 rCD ,6 ,.r""t· .".:.'.,. 3" tL 1a. Type of Work: Drill 0 Redrill D Re-entry D 2. Operator Name: Kerr McGee Oil & Gas Corporation 3. Address: Exploration 18. Casing Program: Size Specifications Top Bottom Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 12-1/4" 9-518" 40# L-80 BT&C .ß31"tJ 40 40 8350 ".¢" 214 sx Permafrost L (158 bbl) ~"'(.O '1SDc"") 1...tI-\t1-\ 201 sx Premium CMT (41 bbl) ~~ Áf'?1 TOC ~ 1700' MD " J9. Total Depth MD (ft): PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Structural Conductor Surface Intermediate Production Liner Length Size Cement Volume MD TVD 80 ft 2953 ft 20" 13-3/8" N/A 402 bbl 118ft 1836 ft Whipstock: 1836' Perforation Depth MD (ft): None Perforation Depth TVD (ft): None Filing Fee L::J BOP Sketch L::J Property Plat 0 Diverter Sketch 0 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Drilling Program L::J Seabed Report D Time v. Depth Plot L::J Shallow Hazard Analysis U Drilling Fluid Program 0 20 AAC 25.050 requirements 0 Date Contact 20. Attachments: MrZUlTodd D, e ~:l- Title Drilling Manager, Kerr McGee Oil & Gas Corporation (AK) Contact: Skip Coyner 339-6269 I c j Phone 907-339-6370 Date 2/15/2005 r Commission Use Only Permit to Drill ., ,--1 API Number: IPermit Approval Number: .2.Of$ .. 0 t-:::. 50- it, 2.. ~ - 23:z.ac¡ - D / Date: Conditions of approval: Printed Name Signature Isee cover letter for other requirements. Samples required Yes rg¡ No D Mud log required Yes.s No D Hydrogen sulfide measures Yes ~ No D Directional survey required Yes ¡g No D 0'"' 5oao~, ~\'~.,-\-. '\'j;)V~"~"_~~. '=-.. '1...X:;~~~.·1:... ~p";:i<è.v~~\f'-.'>\OÑ~'S";\\)\ e (2~ /k / Approved by: ()tJ'7ywJSr~"'Y'~~~C9MMISSION Date: ~1(¿'f!ro..J' Form 10-401 Revised 06/2004 L... Submit in Duplicate . . a TlOII Kigun #1 Drilling Prognosis I Farm-In Acreage from KRU I Drill, Evaluate, Plug and Abandon I AOGCC Permit No.: I Drilling Rig: Nabors 27E Suñace Location: 1724' FSL & 500' FEL of Section 24, T14N, R8E UM X = 507,331' Y = 6,050,899' Exit Point: 1836' TVD 1930' FSL & 869' FEL of Section 24, T14N, R8E UM X =506,963' Y = 6,051,079' Bottom Hole Location: 2039' FSL & 1039' FEL of Section 24, T14N, R8E UM X = 506,792' Y = 6,051,214' I Estimated Spud Date: 13/05/05 I I Operating Rig days: 116 I PTD: 19,295' I I TVD: 19,200' 1 I Pad Elev: 15 ft I I DF: 138 ft I Geologic Objectives: Schrader Bluff, Sag River, Ivishak Sidetrack Plan: / Plug back the Tuvaaq State #1 to .:t2900' MD. Cut and pull 9-5/8" casing at .:t2900' MD. Set an EZSV in the 13-3/8" casing at .:t1900' MD. Down squeeze .:t200 bbl (976 sx) of Premium cement. Test the plug to 2500 psi. 3~S-C) sO.\ - Set a second EZSV at .:t1900' MDj Set a permanent whipstock on the EZSV and mill a ~vvillaow in the 13-3/8" casing. Drill a 12-1/4" hole into the Colville Mudstones while dropping angle back to vertical. Set and cement 9-5/8" intermediate casing. T~"c"7 ~ ~ Drill an 8-1/2" hole into the Ivishak. Evaluate the well and then plug the well. ./ S Coyner J L 2/15/2005 . . Mud Program: 12-1/4" Intermediate Hole (1900' - 4500'): Density PV YP HTHP 9.0 - 9.6 10 - 20 20 - 30 n/a pH 9.0-9.5 MOBM (LVT200) APIW/L LG Solids < 6 < 10 ./ 8-1/2" Production Hole (4500' - 9295'): Density PV YP HTHP 9.8-10.8 10-15 10-20 10-11 pH 9.0-9.5 MOBM (LVT200) ES Tauo 600 - 1000 4 - 7 / Recommended Bit Program: Bit Hole Size Depth (MD) Footage Bit Type RPM GPM 1 12-1/4 in 1,900' - 4,500' 2,600' GT-C1 100 - 120 600 - 750 2 8-1/2 in 4,500' - 9,295' 4,795' HCM605 100 - 120 400 - 550 Casing Program Hole Csgl WtlFt Grade Conn Length Top Bottom Size Tbg O.D. MD / TVD MD / TVD N/A 13-3/8" 68# L-80 BTC 2,956' 35' 2,991 12,730' 13-3/8" 1900' 1 1836' 12-1/4" 9-518" 40# L-80 BTC 4,465' 35' 1 35' 4,500' 1 4,404' Cement Program: -I Casing Size 9-5/8", 40#, L-80, BTC-M Intermediate Casing at 4,500' MD Parameters: Excess = 25% over gauge hole, TOC.±. 1,700', Shoe track = 85' Cement: 200 bbl Wash 10 bbl water Spacer 50 bbl of dual spacer mixed at 10.5 ppg Lead 158.4 bbl, 214 sx Permafrost L, 10.7 ppg & 4.14 felsx Tail 41.3 bbl, 201 sx "G" mixed at 15.8 Ib/gal & 1.16 felsx Temp Casing Point BHST 1180 F (from offset wells) Surveys & MWD: While Drilling: Surface to TD: MWD surveys every 90 to 180 ft IIFR Casandra for magnetic survey verification S Coyner 2 2/15/2005 . . Mud Logging: Intermediate Hole [12-1/4"]: Rig instrumentation: PVT, Flow-Show, gas detectors, H2S / detectors as required. Mud loggers to intermediate casing point: samples every 30 ft: every 10ft through pay zones, gas detection & drilling parameters Rig instrumentation spud to casing point: PVT, Flow-Show, / gas detectors, H2S detectors as required. Mud loggers to intermediate casing point: samples every 30 ft: every 10ft through pay zones, gas detection & drilling parameters -' Production Hole [8-1/2"]: / Evaluation Program: 12-1/4" Intermediate Hole Open Hole: MWD 1 LWD: MWD / GR / Resistivity / Open Hole: Gas Detection, Mud Logging, samples Core Schrader Bluff: 8-1/2" x 4" x 60 ft E-Line: Quad-Combo with dipole sonic & AIT -' MDT's in Schrader Bluff 8-1/2" Production Hole Open Hole: MWD 1 LWD: MWD / GR / Resistivity / PWD / Open Hole: Gas Detection, Mud Logging, samples E-Line: Quad-Combo with dipole sonic & AIT / MDT's in Schrader Bluff Formation Markers: Formation Tops MD rvD Pore Pressure EMW (ft) (ft) (psi) (Ib/gal) B/Permafrost 1,755 1,700 Whipstock & Window 1,900 1,836 <etft' ..-.. T/S.B. "OA" Sand 3,730 3,634 1660 8.80 T/Colville 3,916 3,820 Cfí~ ~S) T/HRZ 6,771 6,675 3390 9.77 LCU / Kingak 6,971 6,875 3450 9.65 T/Sag River 8,421 8,325 4264 9.85 T/Shublik 8,491 8,395 4284 9.81 T/lvishak 8,721 8,625 4350 9.70 Proposed TD 9,295 9,200 4517 9.44 » Due to potential inaccuracies with the seismic velocity, these formation tops may change S Coyner 3 2/15/2005 . . Integrity Testing: Test Point: 13-3/8" Window 9-5/8" Shoe MD I TVD 1900' /1836' 4500' /4404' Kick Tolerance ~ 50 bbls ~ 50 bbls Test Type: LOT LOT EMW: ~ 12 ppg 13.5 ppg Well Control: The 13-5/8" (5M) BOP stack will remain nippled up on the 13-5/8" casing head after plugging back the Tuvaaq State #1. The intermediate and production hole sections will both be drilled with well control equipment of 13-5/8" (5000 psi) working pressure pipe rams(2), blind rams, and annular preventer capable of handling maximum potential surface pressures. BOP's will be tested weekly. Any ram changes and lor flange "breaks" will also be tested before continuing. Based upon offset well data, the rams, valves and manifold will all be tested to 250 psi low / 5000 psi high: the annular tested to 250 psi low / 3500 psi high. The maximum anticipated Surface Pressure is calculated from actual BHP data recorded in the Nikaitchuq #1. The Sag River BHP = 4387 psi at 8746' TVD. These calculations include a 0.29 psi/ft oil gradient and a gas gradient of 0.11 psi/ft: Kigun #1, Nikaitchuq #1, Sag River Sag River Difference = 8325' TVD 8746' TVD -421' TVD Kigun #1 BHP = 4386 psi - [0.29 psi/ft x 421 ft] = 4264 psi v/- Maximum Surface Pressure = 4264 psi - (8325 ft x 0.11 psi/ft) = 3348 psi Disposal of Drillina Waste: . Mud and Cuttings Handling: Cuttings generated from drilling operations will be ground and liquefied on location using the "245 Ball Mill". Liquefied cuttings, mud, etc. will be hauled to Kuparuk's disposal well: 1 R-18 for underground injection. Any solid drilling waste not suitable for injection into 1 R-18 will be hauled using super suckers to G & I #3: located on DS-04, Prudhoe Bay, for disposal. · Sewage (grey/black water): Camp waste water will be hauled to the sewage treatment plant(s) at Kuparuk 1 Prudhoe Bay 1 North Slope Borough for disposal. H2S: . H2S has not been detected or reported from any of the offset wells that produce from the Sag River and/or Ivishak formations. In this case, offset wells include: Thetis Island #1 and Nikaitchuq #1. As a precaution, however, H2S monitors will be used at all times in accordance with State Regulations. S Coyner 4 2/15/2005 . . DRilLING AND ABANDONMENT PROCEDURE Pre-Rig: 1. Nabors 27 -E will already be rigged up and running when operations commence. 2. The 13-5/8", 5,000 psi BOP stack will already be in place. 3. The Tuvaaq State #1 will have been plugged back in accordance with AOGCC regulations. 4. Ensure the permits are in order. 5. Notify the AOGCC 24 hours prior to spud, and the BOP test. Standard Orders: 1. All personnel must sign in at the camp and no unauthorized personnel are allowed on site. 2. For travel safety and location security, all travelers must sign in/out at the security guard post near the spine road AND sign in/out at the assigned camp. 3. A full opening safety valve (with correct threads) will be kept on the drill floor in the open position at all times and the appropriate hex-wrench will be readily available. 4. Pit drills/kick drills will be conducted once with each crew in each hole section. 5. Slow pump rates will be taken each tour while drilling AND after drilling 1000' of new hole AND after any significant changes in the mud properties. 6. The tool pusher and company man will witness the first ten (10) stands off bottom for all trips. Use the trip tank. Keep a detailed trip sheet. Keep the hole full. Watch for swabbing. Drilling Operations: Whipstock and Window: sOS -OS~ 1. After recovering the 9-5/8" casing from Tuvaaq State #1, that well will be plugged back using an EZSV set at ~1900' MD. Test the plug and casing to 2500 psi. The 13-3/8" casing shoe will be down squeezed using that EZSV. Mill the window. Circulate the hole clean. POOH ---- Intermediate Hole Section: In this hole section, we will drop angle slowly to near vertical. Watch for hydrate gas, coal, gumbo, wood and oil shows, etc. 2. P/U the 12-1/4" BHA with MWD and LWD. RIH to the window. Carefully run through the window and drill 20 ft of new hole. Circulate the hole clean. Conduct a LOT at the 13-3/8" exit point: (LOT expected to be ~ 12.1 ppg EMW). Notify the Superintendent ôf the FIT results before drilling ahead. Record "clean hole" P/U, S/O and rotating string weights. Also record the "clean hole" ECD. 3. Drill ahead dropping angle below the window as per the attached directional drilling plan. , Drill the 12-1/4" hole to the core point at ~ 3630' TVD. CBU x 2. Make a wiper trip to the window. RIH to bottom and CBU. Spot Hi-Vis mud in the open hole section. POOH. 4. P/U the 60 ft core barrel and 8-112" core bit. RIH. Space out the drill string. Cut the 60 ft core. POOH slowly. UD the core and coring tools. ~ ,- S Coyner 5 2/15/2005 . . 5. RIH with the 12-1/4" BHA with MWD and LWD. Ream out the cored interval and then drill ahead to casing point in the Colville. Rotary drill with rotary speed ~ 100 rpm. Control drill if necessary as limited by the solids control equipment and the ball mill. Use Super Suckers if needed to keep up with the waste generated while drilling. Drill the intermediate hole to fit the casing tally including 10-20' of rat hole because a mandrel hanqer will be used. Bit 1 Hole Size 12-1/4 in Depth (MD) 1,900' - 4,500' Footage 2,600' Bit Type GT-C1 RPM 90 - 120 GPM 650 - 800 6. At casing point, CBU x 2. Rotate the drill string at ~ 120 rpm to help clean the hole. Make a wiper trip to the window but do not pull the bit up into casing. Return to bottom, CBU x 2 and then until the shakers are clean. POOH. 7. RlU E-Line. Run Quad-Combo Log suite, followed by MDT's and SWC's as/if directed. 8. RID E-Line. RIH with bit & BHA. Condition .the hole to run casing. POOH... <\ Intermediate Casina:) .., q5r"ë) ·'<..o.s \"'~ \"O.~S ~~~'\ \tJ 9. RlU to run 9-5/8", 40#, L-80, BTC casing. RlU Frank's fill up tool (GBR) along with Nabors casing tongs. P/U the 2 shoe joints. Pump through them to be sure the floats are clear. P/U the remaining joints of 9-5/8", 40# casing. Fill each joint with the Frank's tool. Stop and break circulation at the 13-3/8" window. 10. Wash to bottom as/if needed. Break circulation slowly while reciprocating the pipe. Do not stop and N/U the cement head until you have CBU at least once. Watch for losses, packing off and/or sticking. Once circulation is established, circulate at least 1.25 complete casing volumes. Condition the mud while circulating in preparation for cementing. Reciprocate the casing while circulating. 11. RlU Halliburton. Test lines to 3000 psi. Mix and pump the dual spacers. Reciprocate as long as possible. Drop the bottom wiper plug. Mix and pump the cement job as below. Displace with the rig pumps. Land the mandrel hanger. Bump the plug with 1000 psi over final displacement pressure. Do not over-displace more than 5 bbls. Top of cement is expected to be :t1700' MD (200' above the window). Excess = 25% over gauge hole, TOe ± 1,700', Shoe track = 85' Wash 10 bbl water Spacer 50 bbl of dual spacer mixed at 10.5 ppg Lead 158.4 bbl, 214 sx Permafrost L, 10.7 ppg & 4.14 fe/sx Tail 41.3 bbl, 201 sx "G" mixed at 15.8 Ib/gal & 1.16 fe/sx Temp Casing Point BHST 1180 F (from offset data) Production Hole Section: 12. M/U 8-1/2" PDC bit and directional drilling assembly with MWD, LWD and PWD. RIH. Test the casing to 2500 psi. Drill out the shoe track and 20 ft of new hole. Circulate the hole clean. Perform a LOT (LOT expected to be ~ 13.1 ppg EMW). Notify the Superintendent of the FIT results before drilling ahead. Bit 2 Hole·Size 8-1/2 in Depth (MD) 4,500' - 9,295' Footage 4,795' Bit Type HCM605 RPM 80 - 1 00 GPM 450 - 550 S Coyner 6 2/15/2005 . . 13. Drill ahead adjusting the mud weight as dictated by hole conditions and in accordance with the attached mud program. Maintain the OBM properties to minimize the PV, surge, swab and ECD while still cleaning the hole. The mud weight must be > 10.6 to drill the HRZ. 14. At TD, CBU x 2 and then as needed to clean the hole. Make a wiper trip through the T/HRZ, RIH and CBU x 3 again. POOH to the 9-5/8" shoe and then CBU from there. POOH. 15. RlU E-Line. Run Quad-Combo Log suite, followed by MDT's and SWC's as/if directed. 16. RID E-Line. RIH with OEDP and prepare to plug and abandon. 1..--.S.0~ \e~-.)\\€<J Attachments: · "As Staked" survey plat · Geographic Well Path Plat · Days -vs- Depth Graph · Frac Gradient Graph · Temperature Gradient Graph · Wellbore Schematic · Directional Drilling Plan · Drilling Mud Program · Abnormal Pressure Analysis · Shallow Hazard Study is not applicable: this is a sidetrack that exits below the B/Permafrost · Nabors 27E BOP & Diverter diagram · Nabors 27E Choke Manifold Diagram S Coyner 7 2/15/2005 . REV DATE I BY I CK I APP I DESCRIPTION NOTE: SHAPE AND CONFIGURATION OF SPY ISLAND IS FROM OLD MAPPING AND HAS BEEN ADJUSTED TO FIT THE LOCATION OF EXPLORATORY WELLS. THE ACTUAL CONFIGURATION OF THE ISLAND MAY VARY GREA TL Y FROM THAT SHOWN ON THIS DRAWING. N PROPOSED KIGUN #1 BOTTOMHOLE LOCATION Y = 6,051,215 X = 506,792 LAT = 70· 33' 04.14" LONG = 149· 56' 39.52" 2,039' F.S.L., 1039' F.E.L. SECTION 24, T14N, R8E, U.M. . ..,.. . I APP I IREVI DATE I BY CK DESCRIPTION ::D::D 13 ~~ 18 17 16 15 14 25 i ··········1··· I i 24 .Ki.~.~~.....#;.. ! , , ....................mm.......................................··.............................., 30' 29, 28 27 THIS I SURVEY ...mm_ml_····················j__·m, 31 ! 32 33: 34 I i . I OLlKTOK Oliktok Pfint --'~~S~R" m. A 28 -~._~~. 36 35 114N 113N VICINITY MAP SCALE: 1" = 2 Miles PROPOSED KIGUN #1 SIDETRACK LOCATION Y = 6,051,106 X = 506,962 LAT = 70· 33' 03.07" LONG = 149· 56' 34.50" 1,930' F.S.L., 869' F.E.L. SECTION 24, T14N, R8E, U.M. o o 0~ NOTES: 1. ALL COORDINATES ARE APS, NAD 27, ZONE 4. 2. GEODETIC COORDINATES ARE NAO 27. ~KERR-MCGEE CORPORA T/ON CADD FILE NO. LK601 D585 I DRAWING NO: 2/09/05 KIGUN #1 TOPHOLE LOCATION Y = 6,050,899 X = 507,331 LA T = 70· 33' 01.04" LONG = 149· 56' 23.62" 1,724' F.S.L., 500' F.E.L. SECTION 24, T14N, R8E, U.M. O~ \S ~~ -{ -(. ~ 0 ~ ~ LOUNSBURY 8£ ASSOCIATES, INC. S~EYORS ENGINEERS PLANNERS KIGUN #1 EXPLORATORY WELL CONDUCTOR PROPOSED LOCATION I PART: NSK 6.01-d585 1 OF 1 I REV: 0 1000 2000 3000 4000· ..c ..... c.. CD C 5000 "C CD 110. ;j VJ fa CD :æ: 6000 7000 8000 9000· - ~ I 10000 11000 12000 -5 o I I ì - :- - l' I I I I I I I t - -I- I I I I I I I I - --..j - - 1- - -+ - _1_ - I _ _ -1 _ _!_ _ ~ _ _1_ I I I .J _ _ I_ I I J. _ _1_ _ d I I I ~_J__ I I I I I I - I" I" I - -¡- - - I I I I 1- -I- I -1-- I I I I I I -) -j--¡-- I I I I I I ~ I I I I I I -1- ..J 1.- I I I I I I I - - I, Kigun #1 Days -v-Depth I - -I - - r - - - - r - ,- - r I I I I I I I - -1- - -+ - -1- - -J..- - - - - 1- - ....j I I I I I -I - I I I ~ I I I I I I- ~- I I I I -1- I - I- I I I I I I I I _-L____L_...J__L_--!__ I I I I I ~ I I I I L_ ,_ --I- I I I I I I --1---.--1- I I I I I I I -,- I I I I I I I -I - I- I I 1 Evaluate Sag ¡ Ivishak with LWD's Plug I~ Aband()1"I I - -I I I I 1 -¡ I I 1 I 1 I -; -l- I I I 1 I I 1 I _.-1__1.-___ I I 1 1 I I 1 1- I I I ---1---+--1-- 1 1 I o s¡ I I I I I --f-----f----!--f---J-- I I 1 I I I I I I I I 1 I I _1-_--1__ I I I I 1 I I I I - -1- _ .1.-_ I 1 I 1 I Rig Days I I I __I I - - ~ - _1- _1_ _ _ __ I I 10 I L I - -- I I I I I _1_ I I I I I I I I I -1- I 1 I" - -1- I I 1 1 I I I T --j 1 I I I I I 1 -I I I 1 I ,- I I T - -I- I I I I I I 1 , I I ì - -1- r I ~-i-- I I I I - T --! -¡ I I I --+--1--+--1- -; I I I I I _..J___ I I I I I I ..J.. _1_ I .J- _ _I_ I I I 1 I I I --I__f,... I 1 I I I 15 20 s. 3000 .c - Q. W Q 1ij (.) 4000 :e W > sc set ells (Frac Gradient) EMW (ppg) 0 I I I 1 1 1 1 1 '0 I \ I. I 1 ~-ï--;-- the offset wells in this block ,- I I 1 _ 1 were all drilled through the I I _ ~1 Kingak & Sag River with =: 11.1# J I I I I 1000 2000 1 1 I 1 I·' , I I I I I I 1 I I I I I i I -I~ -1- --! - + ~ t - ~ -1- I - ~ - r - -: - ~ ~ ~ - -1- -: J - ~ - r - ~ -:- -: - J - I I I I I I I I ¡ I J I I I ¡ I I ) I I ¡ I J ~ 1 - f - 1- I T - - -¡- -1- T - - ~I- 1 I I I I I I I I J I I J_ 1 __~ I 1 I { I I I I 1 1 1 I I I I I I I I I I I I I I ¡ I I I I I f--I-----!-+ 1--1-- --! +-+-- -1--1-..,.1-+----1--1--1--1- I I I I I I I I I I I ¡ I I I I I I I I I I I I I I I "4 -¡- ¡ '"1 - Î - 1- - -1- -I -¡ 1· - - - r 4 - I I I I I I I I I I I I I I I I I I I I I I I I I -:- - - I - T - í - r - - -1- -¡ T - í -I - I - T - 1- I I I I I I I I I I I I ¡ I I I I I J I I I I I I ¡ I I I I I I I I I I I L_I__I_..J_..l~.L___I_ J.L L I I I I I I I I I I I I I I I I I I I I I I I I I t I' \ I _1_ _I _ -I +- _ _ .-- NW Milne Point. #11: : :: : Jones Island #1 -:- -: - ~ - ~ n ~ I I I I I I I I I ¡ I ¡ ¡ I I - " I 1 I 1 -1 1 I r -1- -1-"1 I I I I I I I I --I -i-ì I 1 I I 1 I I I I I I I I L _ i_ _I _ .J I I I I I I I ¡.,., -1- -I_"'¡ I I I I I I 1 NW Milne Point. ~-1--1-4 Î I I I I I I I I "-I~-I-i-ì 1 1 I 1 1 1 I 1 1 1 I I I 1 I I . _ 1_ ~I _ _ .1 1 I I I 1 I I .. _1_ _I _ -J _ -+ 1 I ¡ 1 1 1 I 1 Thetis Is. #1 ~ ~ ~ 1 I -1- -I_ I I I I 'i I I 1 I I ,- I J_ I I I ~I_..J _ I I I I I I i I ¡ I - r -1- -¡ - '1 - I 1 ¡ I I I I I--I~ ¡- I 1 I J I I - - 1- ~! - --j - -t - ~ ~ r -1- --j- 5000 I L__ I I I I I ¡ ) , ~:~ -: - ~ - ~ - ~ ~ ~ -!'Nikaitchuq #1 ~ I I ¡ I 1 I 1 I I MPE-13 í I I I 1 1 1 1 I 1 1 1 I I - -1- -I t r -1- -1- ì 1 1 I 1 1 1 I 1 I I -I I" - U_ I -I- 1 I I ~J_l__~I~ I 1 I I I I I ! 1 I 1 -:-~ ~, r-:--:--:-~ I : : ~ I : : : : ~ 1- ~¡ - -¡ - î ~ ~ ~ r ~ I- I 1 I I I I 1 I I I 1 "-I--I~!-ì- -¡--I-·- I I 1 I I I I I I 1 1 I I 1 I I I I 1 I 1 .. _1_ _I _.J .1 _ _ L ~ 1_ _I .J I 1 I 1 I I I 1 I 1 I I I I I I - ~ 1- -I - -J ~ -+ ~ _ _ ;.... -I I 1 I I I I ! 1 1 I I I I I -I---j-~---r-I--I---j -~-r I 1 1 I I I I ! I! !!! I I I , I - - _I_-.! ì I Oliktok State #1 1 1 1 1_ _I ...1 1 1 I I I I I I I I I I I I 1 -, , I I 1___ I I I 1. ~ .~ L I I I I I T I I I I I I ~I- -I I I I I I I I i-I I I 1 1 1 I 1 I -I + -- I 1 I I 7000 I 1 I- I 1 1 I I I L _L _ _ ..J 1 I I 1 I 1 I ..!-~!.-~;""~I_~~-J I I I 1 1 1 I I I -t - r - ¡-- - 1- -I - -t - t- I 1 I I I I ! ! I l ¡ ! "r 1 ! I I I I ¡ ¡ 1 ¡...,. -1- -I - --! - I 1 1 1 I I ¡ 1 'i I I 1 I I 1 I I 1 I ¡ ¡ J.___L _I_.J_ 1 I ! ¡ 1 j 1 1 1 .+ -1--1---1- ¡ !! ¡ I I 1 I! J I -1- -1- --¡ - T - - - I- -j- -1-"1 - I I I 1 I I ! I I I J 1 I 1 I I . , ., ")' 6000 I I I I I I I I 1 -I--f.,. --1--+ I I 1 I I I I I I I 'Ì~r 17 -I-~I-'Ì- I I I I ¡ ) I I 1 ¡ j I T-r-I- î i-I I I 1 I I I I J I ¡ I 1 I I I 1 ¡ I j I _L_L___I_.J .1_1.. I 1 I I I I ¡ 1 1 I I <- ~ r.- - -I_...j - -\. +- - - -I- I I 1 1 I I 1 r 'i 't I I 1 ! I! - 'Thetis Is. #1 ;- Oliktok. State #1 8000 10 12 17 18 15 16 11 13 14 2/05 sc .c ... Q. ø C -¡ u t: ø > ø :::::s I... ¡... 10000 I I I I I -¡~ -1- - - +--1- I I I L _Î_ _I _ _ _ 1- _ L _L _ _ j _ 1. I I I I I I I - ¡- I o 1000 I -1- -I -t - - I I _1_ _1_..1_ I I _,- I I I I I I I -1- -1--+ I I ~_i__I_...l_ I I I I I I !--I--I-- I I _L_L...J__ I I I I I + l- I l_L I I _l_ I I I I I I I I I I I 1--1--1 --+ ¡---I- I I I I I L _L _1_ __1- _ L_1- I I I I ! 2000 3000 I I I I I I , + -1- -I -f I I + _L_I -1- -I I __1- _I , 4000 I I I -1- -I I 5000 I I I , -1- --1- -+-- :.:_1_ _i_ .1__ I I 6000 7000 I l- I L I I ,- I I I I r-I- I I I I .....l___l._L_I_ I ¡ I I I I -I - - - - I I I I I I I - +-!-- -1--- I I 1. _ L _I_ I I ,- I I I I - +- - r-!- I I , 1.. _ L _I_ I I 8000 9000 I I I - -1- '-1 I _ _1_ _.I I I 40 60 80 et ells (Temperature Gradient) I ¡ I I ---t-.¡..-f----j I I ..J _ 1. _ L I I I- _ I , + l- I I I 1. _ L _I_ I I I I -1_ I I I I - -1- -I I _1- _, I I I -I - I I I I , - r-i- - -'- - "'- I _ J I I I I -t - .¡.. - I ___,_..1_1._ I I I -I I I _1- _I_ I I I I --t-+ I J l. I I I I I ] I I I I -I - -+ - + - - -1- -I - -+ - I I I I I I L__._I_..l 1.._ _1_..1._ I I I I I 100 180 200 120 140 160 Q ~ Surf 1000' 2000' 3000' 4000' 5000' 6000' 7000' 8000' 9000' . ::; 38 ft I 13-3/6'\68#,1..-80, BTC Window at 1.900' MD, 12-1/4" Hole 9-5/8",40#,l-80, BTC 4500' MD (4404' TVD) Hole . K,igun #1 s. Coyner 2/8/2005 DIRILWD I MUD I DEPTH HOLE I CASING CEMENT FORM MWD WEIGHT MD TVD Freeze Protect w/1" SIZE SPECS PROGRAM INFO 20 inch Wellhead NONE 129.33 #, X-56 Drive Pipe 13-5/8" 5M 115' Welded / Driven 21·1/4" 3M Surface CSQ Original 13-3/8" Test 13-3/8" Kick Off Point 300' 0° 68 Ib/ft Casing to L-80, BTC 2500 psi In!. Yield 5020 psi Base Permafrost 1,755' TOC = 1700' M Collaspse 2260 psi BOl: Whi.p~ock: 1,900' 20° 11 100% Excess GR / RES Inter. Casino Lead Cement In Permafrost , , 21° 9-5/8" 158 Bbls, 214 sx , 40# 10.7 ppg IIFR/Cas , L-BO, BTC 4.15 ft3/sx "1.:1: ::I: In!. Yield 5750 psi Test 9-5J8" :::!:: "1.:1' Collaspse 3090 psi Casing to (I): 1/1' 3500# (I' ~i 0: , Top of Tail Slurry 4,000' 3,904' 0° Float EquiD: Tail Cement 1 ea Float Shoe Premium Cement 1 ea Float Collar 41 bbls, 201 sx 25% Excess , 15.8#, 1.15 cf/sx , Casing Point 4,500' 4,404' 12.25" Oil Based Mud 9.3# - 9.8# , 9 , 0° 8.5" GR / RES PWD , , , 0° , IIFR/Cas :"1.:1 HRZ 7,400' 6,800' 8.5" '::I i:::!: '"1.:1 ¡= '«I :11'.I '- LCU 7,700' 7,000' ¡Õ Sag River Sd 9,000' 8,350' 0° Ivishak Proposed TO 9,295' 0° A..."....... Cn_.. I 1 31 ¢: 0 I.Ö N ".... 81 II ...... <D m c.:> (j) MD, TVD 1 inch::: 100ft Eastings -700 -600 i I -400 I @ 0.000° . ,,300000 5!Sìn 4500.00ftMD "II. ,.,4100.00 ,,5400.00 Current Wall Properties Well: Kigun Ji10000 Horizontai Coordinates: Ref. Global Coordinates: Ref. Structure: Ref. Geographical Coordinates . 6050899.00 N, 507331.00 E 0.00 N, 0.00 E 70' 33' 01.0364" N, 149' 56' 23.6181" W RKB Elevation: 40.000 above Mean Sea Level ,,380000 North Reference: Units : True North Feet (US Survey) - 350 T otai Depth 0000' - 250 Vertical Origin: Horizontal Origin: Measurement Units: North Reference : Kigun (wp02) Proposal Data RKB '" 38' MSL 1724' FSL & 500' FEL ft True North ,.750000 I -¡ Dogleg severity: Degrees per 100 feet (US Survey) Vertical Section Azimuth: 300.322° Vertical Section Description: 1724' FSL & 500' FEL Vertical Section Origin: 0.00 N,O.OO E Measured Incl. Azim. Depth 1900.00 1920.00 2 L510 22.80t 21.163 0.000 0.000 295.584 300.954 309.980 0.000 0.000 I o 1250 Vertical Section Section Azimuth: 300.322" (True North) DrillQue.! 3.03.06.006 9295.75 Vertical Depth 1835.72 1854.24 1993.37 2820.77 9200.00 lIIortl11n9s Eastings Dogleg Rate 368.18 W 408.67 374.81 W 416.20 12.000 420.50 W 471.97 2.500 538.94 W 624.35 2.500 538.94 W 624.35 0.000 179.96 N 183.53 N 215.89 N 315.21 N 315.21 N ".... <D m c.:> (j) Kerr-McGee Corporation Western North SlopeÎ~ Kerr ~C~I'L f;~g<' Tuvaaq Sta(I'IIt.-'I9Jl,gn (wp02) Tproposal Report 7 February, 2005 Surface Coordinates: 6050899.00 N, 507331.00 E (70" 33' 01.0364" N, 149" 56' 23.6181" W) Grid Coordinate System: NAD27 Alaska State Planes, Zone 4 Kelly Bushing Elevation: 40.0Oft above Mean Sea Level spe..........y-sul! DAt......tNG SEAVtt:IiiiiS A Halliburton Company Proposal Ref: pro975 . . Kerr-McGee Corporation Proposal Report for Tuvaaq State #1 - Kigun (wp02) Western North Slope, Kerr McGee Measured True Sub-Sea Vertical Local Coordinates Global Coordinates Depth Incl. Azim. Depth Depth Northings Eastings Northings Eastlngs Comment (ft) (ft) (ft) (ft) (ft) (ft) (ft) 1900.00 21.510 295.584 1795.72 1835.72 179.96 N 368.18 W 6051078.59 N Begin Dir @ 12.0000/100ft : 1900.00ft MD, 1835.72ft TVD 1920.00 22.801 300.954 1814.24 1854.24 183.53 N 374.81 W 6051082.16 N 416.20 Decrease Dir Rate @ 2.5000/100ft 1920.00ftMD,1854.24ftTVD . 2000.00 21.866 305.609 1888.25 1928.25 200.18 N 400.22 W 6051 ~8:7!JiN 2.500 446.53 2070.00 21.163 309.980 1953.37 1993.37 215.89 N 420.50 W 6051H4.4~,N 2.500 471.97 2100.00 20.413 309.980 1981.42 2021.42 222.73 N 428.66 W 6051121.31iN 2.500 482.47 2200.00 17.913 309.980 2075.87 2115.87 243.82 N 1142.gy'Í.J 506876.95 E 2.500 514.83 2300.00 15.413 309.980 2171.66 2211.66 262.25 N 1160.78 N 506854.96 E 2.500 543.09 2400.00 12.913 309.980 2268.62 2308.62 277.97 176.48 N 506836.20 E 2.500 567.21 2500.00 10.413 309.980 2366.54 2406.54 290.95 189.45 N 506820.70 E 2.500 587.14 2600.00 7.913 309.980 2465.26 2505.26 ~p1.18 N 199.67 N 506808.48 E 2.500 602.83 2700.00 5.413 309.980 2564.58 2604.58 !308.64 N .11 W 6051207.11 N 506799.59 E 2.500 614.27 2800.00 2.913 309.980 2664.30 2704.3(f 31:1.30 N 536.67 W 6051211.77 N 506794.02 E 2.500 621.43 2900.00 0.413 309.980 2764.25 2804.25 315:17 N 538.89 W 6051213.63 N 506791.80 E 2.500 624.29 2916.52 0.000 0.000 2780.77 2820.77 315.21 N 538.94 W 6051213.67 N 506791.75 E 2.500 624.35 End Dir, Start Sail @ 0.000° : 2916.52ftMD,2820.77ftTVD 3000.00 0.000 0.000 2864.25 2904.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 3100.00 0.000 g~64i?$, 3004.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 3200.00 0.000 ~Qß4.~~. 3104.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 3300.00 OiØOö'i' 31~¡g5 3204.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 3400.00 0: h~264.25 3304.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 3500.00 '0. . 3364.25 3404.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 / <,«<, . 3600.00 O;oÖOÖ/} 3464.25 3504.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 3700.00 0.000 3564.25 3604.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 3800.00 0.000 3664.25 3704.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 3900.00 0.000 0.000 3764.25 3804.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 4000.00 0.000 0.000 3864.25 3904.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 4100.00 0.000 0.000 3964.25 4004.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 4200.00 0.000 0.000 4064.25 4104.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 4300.00 0.000 0.000 4164.25 4204.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 4400.00 0.000 0.000 4264.25 4304.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 4500.00 0.000 0.000 4364.25 4404.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 9 5/8in Casing 4600.00 0.000 0.000 4464.25 4504.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 4700.00 0.000 0.000 4564.25 4604.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 4800.00 0.000 0.000 4664.25 4704.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 4900.00 0.000 0.000 4764.25 4804.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 5000.00 0.000 0.000 4864.25 4904.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7 February, 2005· 14:38 Page 2 of 5 DrillQuest 3.03.06.008 Kerr-McGee Corporation Proposal Report for Tuvaaq State #1 . Kigun (wp02) Western North Slope, Kerr McGee Measured True Sub-Sea Vertical Local Coordinates Global Coordinates Dogleg \l;,~ical Depth Inct. Azim. Depth Depth Northings Eastings Northings Eastings Rate,t SêCtion Comment (ft) (ft) (ft) (ft) (ft) (ft) (ft) 5100.00 0.000 0.000 4964.25 5004.25 315.21 N 538.94 W 6051213.67 N 624.35 5200.00 0.000 0.000 5064.25 5104.25 315.21 N 538.94 W 6051213.67 N 624.35 5300.00 0.000 0.000 5164.25 5204.25 315.21 N 538.94 W 6051213.67 N 624.35 5400.00 0.000 0.000 5264.25 5304.25 315.21 N 538.94 W 6051213..67 N 624.35 5500.00 0.000 0.000 5364.25 5404.25 315.21 N 538.94 W 605121tf61;N 624.35 . 5600.00 0.000 0.000 5464.25 5504.25 315.21 N 538.94 W 6051213.6~rN . 506791.75 E 0.000 624.35 5700.00 0.000 0.000 5564.25 5604.25 315.21 N 538.94 W .6051213.~1.';l'Jjr 506791.75 E 0.000 624.35 5800.00 0.000 0.000 5664.25 5704.25 315.21 N 53~~4 '/:J.. .. ~51213.67N 506791.75 E 0.000 624.35 5900.00 0.000 0.000 5764.25 5804.25 315.21 N ,53g.:94 W. ~~1213.67 N 506791.75 E 0.000 624.35 6000.00 0.000 0.000 5864.25 5904.25 315.21 N, >'538.9.4 W ,.6051213.67 N 506791.75 E 0.000 624.35 6100.00 0.000 0.000 5964.25 6004.25 ~,15.21 N »'53a":g4W 6051213.67 N 506791.75 E 0.000 624.35 6200.00 0.000 0.000 6064.25 6104.25 315.21 N >538.94 W 6051213.67 N 506791.75 E 0.000 624.35 6300.00 0.000 0.000 6164.25 315.21 N .. '538.94 W 6051213.67 N 506791.75 E 0.000 624.35 6400.00 0.000 0.000 6264.25 315".21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 6500.00 0.000 0.000 6364.25 315:21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 6600.00 0.000 6464.25 6504.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 6700.00 0.000 6564.25; 6604.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 6800.00 0.000 6664-,2.5 .', 6704.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 6900.00 0.000 0.6804.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7000.00 0.000 6904.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7100.00 7004.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7200.00 7104.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7300.00 7204.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 . 7400.00 7304.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7500.00 7404.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7600.00 0.000 7464.25 7504.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7700.00 0.000 0.000 7564.25 7604.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7800.00 0.000 0.000 7664.25 7704.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7900.00 0.000 0.000 7764.25 7804.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 8000.00 0.000 0.000 7864.25 7904.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 8100.00 0.000 0.000 7964.25 8004.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 8200.00 0.000 0.000 8064.25 8104.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 8300.00 0.000 0.000 8164.25 8204.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 8400.00 0.000 0.000 8264.25 8304.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 8500.00 0.000 0.000 8364.25 8404.25 315.21 N 538.94 W 6051213.67 N 506791.75 E 0.000 624.35 7 February, 2005 - 14:38 Page 3 of 5 DrillQuest 3.03.06.008 Kerr-McGee Corporation Proposal Report for Tuvaaq State #1 . Kigun (wp02) Western North Slope, Measured True Sub-Sea Vertical Depth Incl. Azim. Depth Depth (ft) (ft) (ft) 8600.00 0.000 0.000 8464.25 8504.25 8700.00 0.000 0.000 8564.25 8604.25 8800.00 0.000 0.000 8664.25 8704.25 8900.00 0.000 0.000 8764.25 8804.25 9000.00 0.000 0.000 8864.25 8904.25 9100.00 0.000 0.000 8964.25 9004.25 9200.00 0.000 0.000 9064.25 9104.25 9295.75 0.000 0.000 9160.00 9200.00 Local Coordinates Northings Eastings (ft) (ft) 315.21 N 315.21 N 315.21 N 315.21 N 315.21 N 538.94 W 538.94 W 538.94 W 538.94 W 538.94 W 315.21 N 315.21 N 315.21 N 538.94 W W W, All data is in Feet (US Survey) unless otherwise stated. Directions and CQgrdinates Vertical depths are relative to RKB = 38· MSL. Northings and Eastings ~:relative to Global Northings and Eastings are relative to NAD27 Alaska Stªte~lane:$,lQne 4. The Dogleg Severity is in Degrees per 100 feet (US Survey). Vertical Section is from 1724' FSL & 500' FEL and calculated alohg:aliAzimuth of 300.322° (True). Based upon Minimum Curvature type calculations. The Bottom Hole Displacement is 624.35ft., in,1I'1e M~ªsured D'epth of 9295.75ft., id'j;Qf 300.322° (True). The Along Hole Displacement is 6~¡}, The Planned Tortuosity is1>.151 >O!~O Tª~' Âecumulated Dogleg is 57.195° PirØctional Difficulty Index is 4.3. Comment> Station Coordinates TVD Northings Eastlngs (ft) (ft) (ft) Comment 1900.00 1900.00 1920.00 2916.52 9295.75 1835.72 1835.72 1854.24 2820.77 9200.00 179.96 N 179.96 N 183.53 N 315.21 N 315.21 N 368.18 W 368.18 W 374.81 W 538.94 W 538.94 W KOP @ 1930 FSL & 869' FEL - Sec.24-T14N-R8E Begin Dir@ 12.000°/1000 : 1900.00ft MD, 1835.72ft TVD Decrease Dir Rate @ 2.5000/100ft: 1920.00ftMD,1854.24ftTVD End Dir, Start Sail @ 0.000° : 2916.52ftMD,2820.77ftTVD TO @ 2039 FSL & 1039.' FEL - Sec.24-T14N-R8E 7 February, 2005· 14:38 Page 4 of 5 Global Coordinates Northings Eastings (ft) (ft) 6051213.67 N 6051213.67 N 6051213.67 N 605121.ªf§] N 60512t8.67>N 6051213.67N . §051213.§)1>~; ß051213.67N North. & 500· FEL. 506791.75 E > 506791:15 E 91.15 E . 91.75 E 5 91:15 E 506791.75 E 506791.75 E 506791.75 E 0:0 0>;000 0.000 0.000 0.000 0.000 0.000 0.000 624.35 624.35 624.35 624.35 624.35 624.35 624.35 624.35 Kerr McGee Comment . Total Depth: 9295.75ftMD,9200.0OOTVD 7in Casing . DrillQuest 3.03.06.008 Western North Slope, Comments (ContinuedJ Kerr-McGee Corporation Proposal Report for Tuvaaq State #1 - Kigun (wp02) Measured Depth (ft) Station Coordinates TVD Northings Easüngs (ft) (ft) (ft) 9295.75 9200.00 315.21 N Casing details From Measured Vertical Depth Depth (ft) (ft) To Measured Vertical Depth Depth (ft) (ft) 1950.00 4500.00 1881.93 4500.00 4404.25 4404.25 <Run-TD> <Run-TO> 7 February, 2005 - 14:38 538.94 W Total Depth : Casing Detail 9 Sl8in Casing 7in Casing Comment Page 5 of 5 Kerr McGee . . DrillQuest 3.03.06.008 DRII..!..II\I¡;¡- 1inch:: 10ft Radius is Unlimited Reference: BP North Method: Travelling Cylinder DrillDues! 3.03,06,008 . I Halliburton BAROID . Kerr McGee ~ IE_MCBEE ClJIIPfJRAlION B BA~ 010 Kerr McGee Kigun #1 Spy Island, Alaska Baroid MOBM Mud Program Name (Printed) Originator Dave Soquet Reviewed by Dave Higbie Customer Approval Skip Coyner Version No: 1.0 Kigun #1 v1.0 Halliburton Baroid Signature Date: January 30, 2005 Mud Program I Date 2/15/05 . I Halliburton BAROID . Kerr McGee Mud Program I Kigun #1 Mud Program General Discussion This delineation well will be drilled from an off-shore ice pad near the Spy Island, basically due north of Oliktok Point on the North Slope of Alaska. It is a sidetrack from the previously drilled Tuvaaq State #1. Tuvaaq State #1 will be plugged back with an EZSV at ±1900' MD. A whipstock will be set and a window milled in the 13-3/8" casing. A 12-1/4" intermediate hole will be drilled and dropped to vertical after exiting the window. The intermediate casing point will be ±4,500 MD (4,404 TVD). A string of 9-5/8" casing will be run and cemented at that depth. Then, an 8-1/2" hole will be drilled to 9,295' MD. Mineral Oil Base Mud (MOBM) will be used to drill the entire well As a general drilling fluids plan, sidetrack the well with recycled MOBM. Recycled mud from Tuvaaq State #1 and/or Nikaitchuq #3 will be used to reduce mud cost and the associated waste disposal cost. The mud weight will be held between 9.3 - 9.6 ppg mud weight in the intermediate hole. After setting and cementing the 9-5/8" intermediate casing, the subsequent 8-1/2" hole will also be drilled with MOBM. Special Considerations 1. Waste minimization is critical to the success of this well. 2. Lime and zinc carbonate should be on location for H2S 3. Maintain an adequate barite supply to increase the mud weight by 1.5 ppg 4. Due to the remote nature of this location, maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. Well Specifics: Casing Program Sidetrack in 13 3/8" casing 12 ~" hole (9 5/8" casing) 8 Y:z" hole Formation Tops/Casina Proaram 13 3/8" window Schrader Bluff"OA" Top Colville 9 5/8" casing point TD TMD 1900' 3730' 3961' 4500' 9295' TVD 1836' 3634' 3820' 4404' 9200' MD 1900 4500 9295 rvD 1836 4404 9200 Footaae o 2600 4795 Comments 9.0 ppg density Core Condition for Casing Mud Wt 9.0 - 9.4 9.0 - 10.0 9.2 - 9.6 9.2 - 9.6 10.4 - 10.8 Sidetrack /Intermediate Hole (12-1/4" Hole, 9-5/8" Casing at 4,500' MD) Mud Properties Density Vis PV YP ES WPS Intermediate 9.0 - 9.8 55 - 80 10 - 26 9 - 18 800-1100 250 to 300K . Additional mud weight may be required for effective shale stabilization. Kigun #1 v1.0 Q1Y:!.. 80/20 2 2/15/05 . I Halliburton BAROID . Kerr McGee Mud Program I System Formulation Product LVT-200 EZ MUL NT INVERMUL GEL TONE V Lime DURA TONE Water CaCI2 BAROID Concentration 0.68 bbl 4 ppb 4 ppb 6 ppb 5 ppb 4 ppb 0.178 bbl 22.6 ppb As needed .concerns and .continaencies Intermediate Interval Mud Type: 1. Mud weight: 2. Rheology: 3. Other issues: Operations Summary: Millina ENVIROMUL System. Maintain the mud weight at 9.0 - 9.8 ppg. Maximize solids control usage. Maintain a YP between 9 and 18. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning. The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. The following recommendations are given for milling: · A minimum YP of 25 should be used while milling the window. Vis Plus can be used to increase the YP for milling. It's effect on the mud will then wear off as it shears down. · Ditch magnets are required to minimize the build up of metal cuttings in the mud. · Used shaker screens will need fashioned to catch cuttings returns while milling. These metal cuttings can then be thoroughly rinsed and placed in the metal dumpster. · The well is at 60° so once milling begins, the pumps should remain on at all times. If possible, space out the drill pipe to avoid making a connection while milling. If a connection is required, circulate bottoms up before making the connection. · After the window is cut, a minimum of two sweeps should be pumped to help clean the metal from the hole. Weighted sweeps (3 ppb over mud weight) are recommended. Should any problems be seen, pump more sweeps until the hole cleans up. Barolift sweeps (.25 ppb) may also show benefit with the "matting" action they exhibit. Kigun #1 v1.0 3 2/15/05 . I Halliburton BAROID . Kerr McGee Mud Program I Maintenance: 1. Additions of Geltone V will maintain/modify the system rheology to a YP between 9 and 18 to provide effective hole cleaning while controlling ECD and surge/swab pressures. Run the rheology checks at 120°F to TD. 2. Sase oil should be used to thin the mud. OMC 2 and OMC 42 will also be available to condition (thin) the mud as required; however, caution should be used when using these oil mud thinners (particularly the OMC-2) to avoid over-thinning the system. 3. Drill this interval with a tight DURA TONE HT filtration mechanism « 6 cc/30 min @ 2000 F). AK 70 and SARASLOK are also available. 4. The electrical stability of the mud should be run in the 800-1100 volt range with EZ MUL as the primary and emulsifier. DRIL TREAT will be available as an effective wetting agent, if needed for weighting up. 5. Maintain the water phase salinity between 250,000 - 300,000 mg/I range with sack calcium chloride. This level of salinity will provide an effective mechanism for good wellbore stabilization. 6. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 7. The initial oil:water ratio will be 80:20. However if the OIW ratio is higher in any used mud which may be available do not adjust it down. From there, the system will be maintained with base oil allowing the ratio to drift towards the 90: 10 range. This will help reduce the cost of the original fluid and then help control rheology/ECD's with a higher ratio in the lower depths of the well. 8. String in 2-3 ppb of Sarofibre while drilling the Schrader Sluff. Suggested Drilling Parameters Maximum Acceptable ROP in fph at Specified GPM and RPM GPM- 80 rpm 100 rpm 600 99 134 650 115 155 700 128 167 Saroid's recommended flowrate for this interval is 675 gpm to maximize hole cleaning at these penetration rates. Drill pipe rotation> 100 has a significant effect on hole-cleaning capability. Kigun #1 v1.0 4 2/15/05 . I Halliburton BAROID . Kerr McGee Mud Program I Production Hole (8 %" hole to ;!:9,295') Mud Properties Densitv Vis PV YP ES WPS OIW TotheHRZ 9.0-9.4 55-8010-269-18 800-1100 250t0300K 80/20 HRZ to TO 9.8-10.8 55 - 80 10 - 26 9 - 18 800-1100 250 to 300K 80/20 · Additional mud weight may be required for effective shale stabilization/gas control. System Formulation Product LVT-200 EZ MUL NT INVERMUL GEL TONE V Lime OURATONE Water CaCI2 SAROIO Concentration 0.68 bbl 4 ppb 4 ppb 6 ppb 5 ppb 4 ppb 0.178 bbl 22.6 ppb As needed Concerns and Continaencies Production Interval Mud Tvpe: 1. Mud weight: 2. Rheology: 3. Other issues: Operations Summary: Maintenance: ENVIROMUL System. Maintain the mud weight at 9.4 - 9.6 ppg. The mud weight will need to be increased to 10.8 ppg prior to drilling into the Ivishak. Maximize solids control usage. Maintain a YP between 9 and 18. Pump high viscosity or Sarolift sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning in this horizontal wellbore. The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. 1. Additions of Geltone V will maintain/modify the system rheology to a YP between 9 and 18 to provide effective hole cleaning while controlling ECO and surge/swab pressures. Run the rheology checks at 120°F to TD. 2. Sase oil should be used to thin the mud. OMC 2 and OMC 42 will also be available to condition (thin) the mud as required; however, caution should be used when using these oil mud thinners (particularly the OMC-2) to avoid over-thinning the system. Kigun #1 v1.0 5 2/15/05 · . I Halliburton BAROID Kerr McGee Mud Program I 3. Drill this interval with a tight DURA TONE HT filtration mechanism « 6 cc/30 min @ 2000 F) 4. The electrical stability of the mud should be run in the 800-1100 volt range with EZ MUL as the primary and emulsifier. DRIL TREAT will be available as an effective wetting agent. if needed for weighting up. 5. Maintain the water phase salinity between 250,000 - 300,000 mgll range with sack calcium chloride. This level of salinity will provide an effective mechanism for good wellbore stabilization. 6. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 7. The initial oil:water ratio will be 80:20. However if the O/w ratio is higher in any used mud which may be available do not adjust it down. From there. the system will be maintained with base oil allowing the ratio to drift towards the 90:10 range. This will help reduce the cost of the original fluid and then help control rheology/ECD's with a higher ratio in the lower depths of the well. 8. String in 2-3 ppb of Baracarb 50 or Baracarb 25 while drilling the Kuparuk, Sag River and Ivishak sands. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real-time use of the DFG software for the actual Rap while drilling. The table below highlights the maximum Rap recommendations above which hole cleaning will become an issue. 550 gpm increases the ECD by over.4 ppg. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM~ 60 rpm 80 rpm 450 165 202 500 178 240 550 206 275 Risks and Continaencies for the well: Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid in the well. To that end the rheology of the system has been reduced while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping, will both go a long ways toward reducing the risk of lost returns. Should lost returns occur check with MWD personnel prior to pumping any pills to ensure that no plugging will occur. This well is near Milne point so several of the zones may be underpressured. Wellbore Instability: According to the polar plots, a 9.8 ppg mud weight is required to stabilize the HRZ and Kingak. If any sloughing shales occur, be prepared to raise the mud weight a minimum of .4 ppb. Stuck pipe: Kigun #1 v1.0 6 2/15/05 . . I Halliburton BAROID Kerr McGee Mud Program I Two forms of stuck pipe are possible. One is from hole pack-off as related to poor hole cleaning, i.e. cuttings bed. Stuck pipe can occur if a cuttings bed forms, or if the wellbore exhibits severe instability. The best cure is to pro-actively prevent the occurrence of either scenario in the first place, and if they do occur, correct drilling practices must be employed. If pulling up into a tight spot, do not jar up further, but attempt to get below the problem. Backreaming a large cuttings bed is an invitation to packing off and resulting stuck pipe, and backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand and there are indications of differential sticking, there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. Hole Cleaning: Maintaining the programmed flow properties is essential to successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings (PWD increases, drag, torque, partial packing off) should be countered by increasing the circulation time on subsequent connections and prior to trips. Pipe rotation should also be used in conjunction with the pumping of high viscosity sweeps in the pay sands. The returns at surface of all pills should be monitored at the shakers and documented to gauge their effectiveness. When circulating bottoms up prior to POH, it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. Pipe should be kept moving at all times while circulating. Pump rates and rheology will be the primary mechanisms for hole cleaning. ROP rates above the recommended levels or with no (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: · wiper trips . back reaming · extended periods of circulation (with maximum pipe rpm, targeting ~ 100 rpm) · hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) · connection practices - employing extended gpm, rpm and back reaming during the connection Kigun #1 v1.0 7 2/15/05 Kerr McGee BAROID Intermediate - Modeled hole cleaning Kerr-McGee Con~radoc Kig'Jn n1 R~: 27E Cullings T rampm! load. % USA Hole Mgle IbJgaI 1000 . ... Ib/gal 5 & & 364ü,Onì 2000 --- 1225 În 3000·· 4000 - 5 K 3 K 660.0111 12.25 in \ "'\ 1 S K 2B13 K 20110 III ! í í I 30 60 90 9.40 I I ¡ 5 10 15 20 25 0 50 1000 96 R hr r! IT tìm~ A flowrate 650-700 gpm's is recommended. 100 rpm's gives a cleaning management versus 80 rpm. advantage in both hole BAROID Production - Modeled hole cleaning IOperator. Kelf~!cGee ~Velt K~un ~1 Cultings T ,wpmt % 3000·, 7000 - ~ooo . I 5 10 15 ¿o 250 50 1000 1 n nr rllT tìm¡; Kerr McGee 938110 11.80 ¿:- ..:::. --J5 & 3 & 66O,011! & 200,0 It! 2:: 80 rpm. This lower flowrate will . I Halliburton BAROID . Kerr McGee Mud Program I fluid Volumes: Sidetrack ¡Intermediate Interval: For the sidetrack, approximately 800 barrels of reconditioned MOBM will be re-used from Tuvaaq State #1. Dilution rates for the 12 y.¡" section are anticipated at .45 bbl/ft. Estimated fluid Disposal Volumes: Initial build Dilution Total P10 700 890 1590 P50 800 1150 1950 P90 1000 1580 2580 Estimated Drill Solids Disposal Volumes: P10 370 190 560 Cuttings Volume Wetting Fluid Total P50 410 410 820 P90 470 940 1410 Production Interval to TD: The existing mud system from the sidetrack interval will be used for this interval. Some new mud may need to be built to adjust properties. Dilution rates are anticipated at 0.25 bbls/ft. Estimated fluid Disposal Volumes: P10 P50 P90 Initial Build 0 200 400 Dilution 720 1200 1680 Total 720 1400 2080 re-use/buy back 1000 800 600 Net usage (280) 600 1480 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 340 370 420 Wetting Volume 170 370 840 Total 510 740 1260 fluid Costs: P10 P50 P90 12 W' Sidetrack 28,000 44,000 71,000 8 W' Production 124,000 201,000 304,000 Total $152,000 $245,000 $375,000 Kigun #1 v1.0 2/15/05 10 . . ~ KE....E Ct1RPIJRATltJN February 15, 2005 Kigun #1 Kerr McGee Oil & Gas Corporation Abnormal Pressure Analysis Attached is a graphical representation of the known offset formation pressures and extrapolations/predictions made based upon that data. This well, Kigun #1, will be drilled from the Tuvaaq State #1 surface casing. The Kigun #1 well is located in a large regional fault trend containing several lesser faults. Still, the depositional and tectonic mechanisms that affect reservoir pressures are uniform within the boundaries of this major fault trend, and pressure gradients used to extrapolate/predict formation pressures from known data are also consistent. As such, the predicted pressures in potential hydrocarbon-bearing formations were derived in the following manner using predicted TVD's and known gradients: . Sag River sand from Nikaitchuq #1 BHP: 4386# - ( ð. TVD x .29 psi/ft) = 4264 psi Formation Tops MD rvD Pore Pressure EMW T/Schrader Bluff "OAn 3,730 3,634 1660 8.80 T/Colville 3,961 3,820 T/HRZ 6,771 6,675 3390 9.77 LCU I Kingak 6,971 6,875 3450 9.65 T/Sag River 8,421 8,325 4264 9.85 T/Shublik 8,491 8,395 4284 9.81 T/lvishak 8,721 8,625 4350 9.70 The captioned well will be drilled between the Nikaitchuq #1 and the Tuvaaq State #1. The Nikaitchuq #1 was drilled into the Ivishak with 10.8 ppg. Due to the high inclination of the Tuvaaq State #1, we plan to drill to TD in the Ivishak with ~ 11.0 ppg mud. This well, Kigun #1, will be vertical in the Jurassic section and we plan to drill it with 10.6 - 10.8 ppg mud weight. Both the Baroid-Sudbury and the Kerr McGee Polar Plots are attached. s~ý ASRC Energy Services 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 (907)-339-6269 s 3900 C Street Suite 702, Rm 744 Anchorage, AK 99503 Predicted Formation Pres·sures -0 I i () zoo 400 600 800 1000 1200 1400 1600 1800 2000 noo 2400 2600 2800 3000 3200 3400 3600 3800 4000 4200 4400 Pressure (Subsurface) . . . g o Q '0 o <is , I ' , , , I ' , 00 \If 1 49 , , ¡ , , ¡ . t . ¡ ¡ } ¡ . . ¡ , , ¡ , , , , ¡ , , , , I ' , , , I ' , , , I ' , , , ¡ , , 150 08 00 \If 150 04 00 \If 1 SO 00 00 \If 00 \If Kigun #1 Exploratory Well 2050250 ~ SFD 2/18/2005 '" ..¡> 8 z 490,000 ! 500,000 I z g o Ô .,¡- o <is N ~ C~ . . Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Phone: (907) 279-1433 Fax: (907) 276-7542 Fax Transmission The information contained in this fax is confidential and/or privileged. This fax is intended to be reviewed initially by only the individual named below. If the reader of this transmittal page is not the intended recipient or a representative of the intended recipient, you are hereby notified that any review, dissemination or copying of this fax or the information contained herein is prohibited. If you have received this fax in error, please immediately notify the sender by telephone and return this fax to the sender at the above address. Thank you. To: ..:3kl'¡; LÞ)tALr /1SK:.C-U From: ~V~ ~t::lVI¿~ Phone#: g-:gcr-??01' Subject: f:' ~ If( ?In Message: Fax#: 33,?-t;Z 76 Date: ~. «- 0 s;- ~ Pages (including cover sheet): If you do not receive all the pages or have any problems with this fax, please call for assistance at (907) 793-1223. F@b 28 05 04:00p . . p.2 STATE OF AlASKA ALASKA OIL AND GAS CONSERVATION COMMISSION NOTICE OF CHANGE OF OWNERSHIP 20 MC 25.022 1, Operslnr Name: ConocoPhillips Alaska, Inc. 'until March 1, 2005 Kerr-McGee Oil & G~s corporation effective March 1, 2005 ,,2,Address: ConocoPhìll.l.ps A.iaska, .inc. .l',err-l.".Ic\.:ree vii ò< C;ë:i~ CU.Lþl~1:al";"0n 700 G Street, ATO 1470 16666 Northchase POBox 100360 Hobstöri, TX 77060 Anchoraae. AK 99510-0360 3, Notice is hereDY given that the owner ŒJ . landowner U . of recottj for the oil and gas property described below has assigned or tnmSferred interest in the property indicated below: Proper1y Designation; ADL 355024 Legal descript10n of property: Reid or Unit: RECEIVED MAR '(ll 2005 Alaska Oil & GIS Cone C...!'IVnÏ . . ·v....·""'O" Anchorage Portions of ADL 355024 Insofar and only Insofar as said lease covers lands outside the Participating Area ·for the Kuparuk River Unit: T14N. R8E. UMiAT MERIDIAN See 24: Protracted, All - 640 aes See 25: Protracted. All - 640 acs See 36: Protracted, All -: 640 acs T14N. R9E. UMIAT MERIDIAN Sec 19: Protracted, All - 617 acs Sec 30: Protracted, AII- 620 acs See 31: Protracted, All - 623 acs Containing approximately 3,780 acres. more or less Property plat attached o ". Effeetive date of assignment or transfer. 5. peroentage intereSt as~ned or tran.!:ferred: Haren 1, 2005 6. Assignee or Transferee: Armstrong Alaska, Inc. Addrets: '700 17th' street, Suite 1'400 Denver, CO 80202 39.2~2233% 7. Assignor or Transferor: BP Exploration (Alaska) Inc. Address: 900 E. Benson Blvd. Anchorage, AK 99419~6612 ,., -7h~ thÓ~~'."". !roe ,," "''''''',.." ...., '" my -.... Signature: ~/ Printed Name:f?L. "S'þ } fe-r (\ Date: mti1tJ" I , 2- OJ S- II ""1I?¡aj~-G, -fTik Form 10-417 Rev,10/2003 Re: Operatorship - ADL 355024 . . David, I will be out of the office beginning this afternoon and continuing through March 3rd. Bob Crandall of AOGCC will be the geologist working to finish the administrative review of the Kigan 1 permit to drill application. His phone number is 907-793-1230. I just want to reiterate what I said in my voice mail message of 2/23/05 to yr1 to make sure that all ownership / operator issues are covered: ol¡a\~rpø/ ~~. ~i t,1'V' Q; þ~ , ~ 1. Notice of Change of Ownership forms signed by BP, CPAI and Unocal are needed. These documents are beginning to arrive. ,,/ 1m v' j)J' 2. Designation of Operator forms from Armstrong, ExxonMobil and XTO designating Kerr-McGee as (the operator for ADL 355024 are needed, unless the unit operating agre.em. e.nt has been amended to allow Armstrong to designate an operator for this particular lease. ~ ~~~ Sincerely, ~. Steve Davies ,\OGCC I:~'r ¡fJ"\J c.e.> Wr sJ~r¡ ~ 2-- et Q£dJ #;).. ~.. b--t~b-& ¡ ¡ /(id 4~J«-~ <-f (~ r/ t~1- -!;; Þ £; rrr-f 4- &GJ 1/. /)) /.' d><J ~~ /-&-v KG.,..."" ¡'Uè- L') .¿¿ V I , t)~ K'j;' 11 ! (~¿(j , Áh ¡. ~~- ~- .; ,. 3~~· ð~ ) "ii.l/ S3'OS~/v'6r'æÞlzi~ç,'~ o/~,,4~lAio-.L~.;fl.- (.,-y-cLu: /~. ~ ./.Æf' ~ ~~ .. ~d i /'Ír~~~ I~ '1:3 f ~~A 1ð:Yritd fJ. . " ~. .' . . ( "t.h, cu,.. C¡C>A.:£. ~rA::C. ðh¿¿,9( cz~ . ~ O~U/J~. .' . . :~vd ':'f:f/ ':!Jud.. J ';"~d.- d"",>« il.A~cJ AJ'.,hi¿ 4'. U5f 'X!~"i:-- ~~£/~ ~~,'X cg ;;!-~ ./4-~s~ ~'ì {,.;£)1~~-t"Jú- ~ ~ ð~~ 0rJ'dU-. ' ~ 165.0~~ ~Þ/~ ?·t(.óS ~ß -Cl J~ 1 of 1 2/28/2005 4:24 PM . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION NOTICE OF CHANGE OF OWNERSHIP 20 MC 25.022 . 1. Operator Name: ConocoPhillips Alaska, Inc. until Harcn 1, 2005 Kerr-'-McGee Oil & Gas Corporation effective March 1, 2005 2. Address: ConocoPh~llips Alaska, Inc. 1,err-lV1C\.:1ee uil be Gas COLpV.Lat:.i..uli 700 G Street, ATO 1470 16666 Northchase POBox 100160 HòUston, TX 77060 Anchorage. AK 99510-0360 3. Notice is hereby given ltIat the owner ~ ' landowner LJ . of record for the oil and gas property described below has assigned ortransferred ¡!teres! in the property indicated below: Property Designation: ADL 355024 IiEÇ~JVED Legal description of property; Field or Unit: FEB 2 8 2005 .....~. GIIc... .~ C_lflll ".!q"'" . Portions of ADL 355024 Insofar and only insofar as said lease covers lands outside the Participating Area -for the Kuparuk River Unit: T14N, R8E, UMiAT MERIDIAN Sec 24: Protracted, All - 640acs ' Sec 25: Protracted, All - 640 acs ' _ Sec 36: Protracted, All": 640 acs - j14N,R9E, UMIAT MERIDIAN Sec 19: Protracted, All - 617 acs ( ~!k Sec 30: Protracted, All - 620 acs ' C Ii> Sec 31: Protracted, All - 623 acs" 3~'':>'7.· Containing approximately 3,780 acres, more or less Property plat attached 0 4. Effective date of assignment or transfer: 5, Percentage interest assigned or transferred: March 1, 2005 6. Assignee or Transferee: Armstrong Alaska, Inc. Address: 700 17th'Strèet, suite 1400 Denver, CO 80202 55.293767% Working interest reserving net 3.317626% overriding royalty interest 7. Assignor or Transæror: Ph '-11· ,- Al k ~onoco ~ ~ps as a, Inc. Address: POBox 100360 Anchorage, AK 99501-0360 81 œ7..þ"œ _o'zo""" M;' ,"''' the "'" of my """"'oj,. Signa r· :.~;;h/i1 ~ .----r- '. . Printed Name: -:J¡mes fVJ - +<:. U.A.t d Date: ~/.f{1oJ- !lffD t I}ey~ Ln - ,F;c:1- Title: Form 10-417 Rev.10!2003 ( o p y . . Kigun Ownership 1 Operatorship Issues Anticipated spud date is Mar 5th. Kigan 1 is a sidetrack of the Tuvaaq 1 exploratory well. Kigan 1 will lie entirely within lease ADL 355024, which is in the KRU. Armstrong is acquirint the interest of BP, CPAI and Unocal in this lese. ExxonMobil and XTO are minority interest owners. DNR has approved the assignments from CPAI and Unocal to Armstrong effective March 1st. The BP assignment is "int he mail" to DNR. It should be received and approved by DNR on Feb. 28th, effective March 1 st. ARmstrong with then own 99.5266% of the lease, with ExxonMobil holding 0.3648% and XTO holding 0.1086%. Rob was out of the office, so I talked with John about this. We need: 1. Notice of Change of Ownership forms from BP, CPAI and Unocal as the transferors, designating Armstrong as the transferee for this lease. 2. Designation of Operator forms from Armstrong, ExxonMobil and XTO designating Kerr-McGee as the operator for this lease, unless the unit operating agreement has been amended to allow Armstrong to designate an operator for this particular lease. This all should be arriving Feb. 25th or 28th. I believe all other admin and geology aspects of the permit app have been addressed. Thanks, Steve D. 2/25/05 Re: Operatorship - ADL 355024 . . David, I talked this over with John Norman, Chairman of the AOGCC and an attorney. You will need to file with the AOGCC: 1- Designation of Operator form signed by KMG and Armstrong naming KMG operator. YES 2- Notice of Change of Ownership form signed by Unocal - there is only one signature line on this form, and the Transferor (Unocal) should be the signatory party. 3- Notice of Change of Ownership form signed by ConocoPhilips - as on preceeding line: the Transferor (ConocoPhillips) should be the signatory party. 4- Notice of Change of Ownership form signed by BP- as with two lines above, the Transferor (BP) should be the signatory party. Because the assignments to Armstrong are to be effective March 1, 2005, the other forms can be dated when signed but the effective date (item 4 on both forms) might as well be March 1,2005. YES, the intent is for KMG to become the new operator for this lease effective March 1, 2005. The operator change will actually become effective when the Designation of Operator form is signed by both of our Commissioners (hopefully that same day, if we receive the forms on time). We will process the forms as soon as we receive them. I will be out of the office next week, but Bob Crandall, our Senior Petroleum Geologist (907-793-1230, bob crandall@admin.state.ak.us), will be available to help you. Insert "ConocoPhillips Alaska, Inc. until March 1, 2005 and Kerr-McGee Oil & Gas Corporation effective March 1, 2005" as that most clearly states the intended operator status. Let me know if you have additional questions. Steve Davies AOGCC 907-793-1224 Henke, David wrote: Steve, once again I want to thank you for your help in getting this accomplished. Your voice mail last night let us get on it quickly. You were working pretty late and still took the time to call me. I appreciate it. The Joinder Agreement did name "Armstrong or its permitted assigns, which are limited to Pioneer Natural Resources Alaska, Inc.and lor Kerr-McGee Oil & Gas Corporation..." to be Tract Representative for the first well drilled. Armstrong will send you a copy of the fully executed Joinder Agreement including the execution pages. Please look at Article 4.2 for the language about operator. I am attaching a copy of pages 5 and 6 to help speed up your review. «Scan001.PDF» If I understand correctly, in addition to the copy of the fully executed Joinder Agreement, you will need: · Designation of Operator form signed by KMG and Armstrong naming KMG operator. · Notice of Change of Ownership form signed by Armstrong and Unocal · Notice of Change of Ownership form signed by Armstrong and ConocoPhilips · Notice of Change of Ownership form signed by Armstrong and bp. Because the assignments to Armstrong are to be effective March 1, 2005, the other forms can be dated when signed but the effective date (item 4 on both forms) might as well be March 1,2005. 10f2 2/24/2005 9:56 AM Re: Operatorship - ADL 355024 . . ONE MORE QUESTION - or series of questions -- Item one in the! Notice of Change of Ownership form asks for the name of the Operator. Should we insert "Kerr-McGee Oil & Gas Corporation effective March 1, 2005"? Or should we insert "ConocoPhillips Alaska, Inc." because that is the correct entity at the time the forms are signed? Or should we insert "ConocoPhillips Alaska, Inc. until March 1, 2005 and Kerr-McGee Oil & Gas Corporation effective March 1, 2005"? If none of the above, what should we insert? Important Notice!! If you are not the intended recipient of this e-mail message, any use, distribution or copying of the message is prohibited. Please let me know immediately by return e-mail if you have received this message by mistake, then delete the e-mail message. Thank you. 2 of2 2/24/2005 9:56 AM . . 355024 FARMOUT AGREEMENT THIS 355024 FARMOUT AGREEMENT (this "Agreement") is made by and among ConocoPhillips Alaska Inc. ("CP AI" or "Farmor"), and Armstrong Alaska, Inc. ("ARMSTRONG" or "Farmee"), each of which is sometimes referred to herein as "Party" or collectively, "Parties." This Agreement is made effective as of September 1, 2004 ("Effective Date"). RECITALS A. WHEREAS, Farmor owns an undivided interest in a certain oil and gas lease shown on the attached Exhibit "A," more particularly described on the attached Exhibit B ("ADL 355024"), which are both herein incorporated by reference; B. WHEREAS, Farmee, in exchange for an assignment of interest in that part of ADL 35024 indicated on Exhibit B attached hereto as the "Subject Lands" ("Subject Lands"), desires to drill and test an exploratory well in order to evaluate the potential for commercial production on Subject Lands. NOW THEREFORE, for and in consideration of the mutual covenants and promises given below, the Parties hereby mutually agree as follows: AGREEMENT 1. GrantlRatification of Agreements. 1.1 Within 30 days of execution of the ADL 355024 Special Joinder Agreement referred to in Section 1.2 below by all parties thereto, Farmor shall assign 100 percent of its right, title and interest in and to the Subject Lands to Farmee, subject to: a. all burdens of record and burdens noted on Exhibit "B" hereto and b. the Farmee's duty to re-assign contained in Section 5 ofthis Agreement; and Page 1 of 14 355024 Farmout Agreement LEASE NUMBER Portions of ADL 355024 . LEASE DATE 6/1/83 . EXHIBIT "B" to }~5024 farmout Agreement SUBJECT LANDS LEGAL DESCRIPTION Insofar and only insofar as said lease covers lands outside the Participating Area for the Kuparuk River Unit T 14 N. R 8 E. UMIAT MER Sec 2,4: Protracted, All (640); Sec 25: Protracted, All (640); Sec 36: Protracted, All (640); T 14 N, R 9 E. UMIAT MER Sec 19: Protracted, All (617); Sec 30: Protracted, All (620); Sec 31: Protracted, All (623); WORKING INTEREST OWNERSHIP ExxonMobil Alaska Production, Inc. 0.3648% XTO Energy Inc. 0.1086% Union Oil Company of California 4.9506% BP Exploration (Alaska) Inc. containing approximately 3,780 acres more or less, 39.282233% Note, the Subject Lands are ConocoPhillips Alaska, burdened by the proportionate Inc. share of base royalty to State of Alaska, net profit share to State of 55.293767% Alaska, and all other burdens of record as of the Effective Date of this Agreement. Reserving to F armor its interest in and to the Remainder of ADL 355024, to wit: T13N, R09E, UMIAT MERIDIAN, ALASKA, Sec. 5: Excluding USS 4275; Sec. 6: SW4; Sec. 7: Excluding USS 4275; Sec. 8: Tide and submerged lands. Exhibit "B" to 355024 Farmout Agreement . . ADL 355024 SPECIAL JOINDER AGREEMENT TO KUPARUK RIVER UNIT AGREEMENT AND KUPARUK RIVER UNIT OPERATING AGREEMENT .-~~TA!~ OF ALASKA THIS ADL 355024 SPEC AL JOI~~~~~GREEMENT to the Kuparuk River Unit Agreement and Kuparuk Ri er Unit Operatipg Agreement ("this Joinder Agreement"), is entered into by and among HILLlPS Alaska, Inc. ("CPAI"), BP Exploration (Alaska) Inc. ("BP"), Union Oil Company of California ("UNOCAL"), ExxonMobil Alaska Production Inc. ("EMAP"), and XTO Energy Inc. (hereinafter collectively referred to as "the Kuparuk Owners"), and Armstrong Alaska, Inc. ("ARMSTRONG"), a party owning a working interest in a portion of lease ADL 355024 within the Kuparuk River Unit but owning no working interest in any other Kuparuk River Unit leases (each individually sometimes referred to herein as "Party" and collectively as "Parties"). WIT N E SSE T H: WHEREAS, the Kuparuk Owners own working interests in the leases comprising the Kuparuk River Unit ("KRU") and pursuant to the KRU Unit Agreement have established the Kuparuk Participating Area, the West Sak Participating Area, the Tabasco Participating Area, the Tarn Participating Area, and the Meltwater Participating Area for the development and production of certain producing formations within the KRU (herein "Existing Participating Area(s)"), WHEREAS, that certain State of Alaska oil and gas lease known as Lease ADL 355024 is held by the Kuparuk Owners, is committed to and part of the KRU, and is part of and allocated production from an Existing Participating Area (to wit, the Kuparuk Participating Area); and WHEREAS, pursuant to the 355024 Farmout Agreements as defined herein, ARMSTRONG is or has the opportunity to become a Working Interest Owner solely of part of Lease ADL 355024, as more particularly defined herein ("Subject Lands"); and WHEREAS, the Kuparuk Owners entered into that certain Kuparuk River Unit Agreement ("KRUA") and that certain Kuparuk River Unit Operating Agreement ('KRUOA"), both effective December 1, 1981, as subsequently amended; and WHEREAS, Kuparuk Owners entered into that certain Greater Kuparuk Joint Operating Agreement - Pre-Development, effective March 1, 1997 ("GKJOA"); and WHEREAS, Article 16 of the KRUOA provides for Tract Operations within the Kuparuk Participating Area ("KPA") and the GKJOA governs Tract Operations and all operations that are part of or necessary for Exploratory Operations, Appraisal ·---.--------n-n----·-------------~______1 Agreement shall terminate, any and all waivers given herein shall be deemed void, and the Parties shall have no further obligations hereunder. , ~ ! ~ I ¡ I i! I I t i I fI , I ì ~ . 3.2 Upon ARMSTRONG's ratification of documents listed in Section 3.1, ARMSTRONG shall become a KRU Working Interest Owner subject to and bound by the terms of this Joinder Agreement, the KRUA, the KRUOA, the GKJOA, the Satellite SSPs, the EaR Agreement, and all Other KRU Agreements, including any relevant portions of the GKA Alignment Agreements, to the extent such agreements apply to and affect the Subject Lands. ,,< ~ I I i I Ii I' 3.3 ARMSTRONG acknowledges, agrees and represents that its execution of this Joinder Agreement is made after informed consideration and evaluation and at ARMSTRONG's sole risk, in conjunction with its separate execution of the 355024 Farmout Agreements. ¡ ¡ I I ¡ ARTICLE 4 ,:c. THE SUBJECT LANDS AS PART OF THE KRU 4.1 If the Commis . ) at any time prior to Armstrong commencing operations on the Well equires t at ADL 355024 be segregated into the Subject Lands (or any part thereof) and those lands not subject to the 355024 Farmout Agreements (or any part thereof), under such terms that any part of ADL 355024 as it existed on the day prior to execution of the first in time 355024 Farmout Agreement is not held by or shall not continue to be held by production allocated from any Existing I ' Participating Area on such date prior, or (b) proposes, as part of an approval of J ~ an action related to the Subject Lands, any new required provision or term on 1 ADL 355024 or the KRU that has a material adverse effect that the Kuparuk Owners deem unacceptable, then this Joinder Agreement shall terminate upon such segregation or proposed imposition of a new unacceptable term or provision. It is agreed that Armstrong shall not commence operations on the Well until such time as the Commissioner of DNR has approved the assignments called for under the 355024 Farmout Agreements. f ! i ¡ , , ~ 4.2 Under one or more of the 355024 Farmout Agreements, ARMSTRONG has the opportunity to drill at least one well in, on or to the Subject Lands in order to earn and retain Working Interest in the Subject Lands. ARMSTRONG or its permitted assigns, which are limited to Pioneer Natural Resources Alaska, Inc.and/or Kerr- McGee Oil & Gas Corporation and subject to all other terms and conditions herein, shall be the designated Tract Representative for the first such well drilled to earn Working Interest for ARMSTRONG in the Subject Lands ("Well") and, as operator of a Tract Operation pursuant to Article 16 of the KRUOA, shall have the right to drill and, in its discretion and as appropriate, test, evaluate and conduct pilot production operations for the Well to determine if the Well is capable of sustained commercial production of Unitized Substances as provided in Section ~ i B I ~ m ~ Page 5 of 18 r--------- - . ........--.. ..-.. ..---..-....,--..-....,,-..-...-- ~ r 16.005 of the KRUOA. ARMSTRONG shall submit to the Unit Operator, for approval on behalf of the Kuparuk Owners, a comprehensive well drilling program ('Well Plan") for the Well as required pursuant to Section 16.005 of the KRUOA, prior to commencement of any activities involving drilling of the Well. The Operator having satisfied itself that the Well Plan appears to Operator to be safe, prudent, and consistent with North Slope Alaska industry standards, the approval of the Well Plan shall not be unreasonably denied. t ¡ f , l ì 4.3 In the event that: a. The Well proves capable of sustained commercial production of Unitized Substances; and b. ARMSTRONG desires to have the Unit Operator take over operation of the Well and further appraisal and development of the Subject Lands; and c. The Unit Operator agrees, in its discretion, to take over operation of the Well and further appraisal and development of the Subject Lands, then, the Kuparuk Owners participating in the Well, if any, and ARMSTRONG shall petition the Commissioner for a separate Participating Area within the KRU, even if such reserves are or may be in hydrocarbon communication with a producing formation in an Existing Participating Area. The Satellite SSPs shall be formally adopted and applied to any such Participating Area. 4.4 In the event that the Well proves capable of sustained commercial production of Unitized Substances, and Armstrong and any other Parties participating in the Well determine that Armstrong should operate the Well and further appraise and develop the Subject Lands as operator, the participating Parties shall petition the Commissioner to segregate the Subject Lands into a new lease, contract the segregated Subject Lands from the KRU, and form a separate unit or commit the segregated lands to a unit other than the KRU. Notwithstanding anything to the contrary herein, should the Subject Lands or any thereof be segregated and contracted out of the KRU, said lands shall no longer be encumbered by any of the following agreements: the KRUA, the KRUOA, the GKJOA, the Satellite SSPs, the EaR Agreement and all Other KRU Agreements, including any relevant portions of the GKA Alignment Agreements, and this Joinder Agreement. 4.5 Provided the Subject Lands have not been segregated and contracted out of the KRU pursuant to Article 4.4 above, if the Commissioner at any time orders an expansion of an Existing Participating Area that includes the Subject Lands, the Parties expressly agree that, as among the Parties hereto, notwithstanding any expansion of the Existing Participating Area to include the Subject Lands, the Subject Lands shall be assigned zero percent (0%) Tract Participation within the particular Existing Participating Area. Except as may be specifically provided otherwise herein and notwithstanding any Tract Participation schedule imposed by the Commissioner or the Commissioner's delegate for any expansion of an Existing Participating Area, as among the Parties, the Subject Lands, collectively, Page 6 of 18 n ____.__1 LEASE NUMBER Portions of ADL 355024 LEAS E DATE 6/1/83 . EXHIBIT "H" . to ADL 355024 Special Joinder Agreement to the Kuparuk River Unit Operating Agreement and Other Agreements LEGAL DESCRIPTION Insofar and only insofar as said lease covers lands outside the Participating Area for the Kuparuk River Unit: T 14 N, R 8 E, UMIAT MER Sec 24: Protracted, All (640); Sec 25: Protracted, All (640); Sec 36: Protracted, All (640); T 14 N. R 9 E. UMIAT MER Sec 19: Protracted, All (617); Sec 30: Protracted, All (620); Sec 31: Protracted, All (623); containing approximately 3,780 acres more or less, Subject to base royalty, Net Profit Share, and all burdens of record. WORKING INTEREST OWNERSHIP UPON FO ExxonMobil Alaska Production, fnc. ~ XTO Energy, Inc. - 0.364800% 0.108600% / Armstrong Alaska, Inc. gJ.Ü.e- ¡;~ ~/I ~r (from UCL): -00 '1 ï()! -==- 4.950600% ;' Armstrong Alaska, Inc. '....",....., f/...e- µu¡...../ ., (from BP): 'f:,~4" 39.282233% f· Armstrong Alaska, Inc. p,fi,.cJ,' 3/ JþÇ"' (from CPAI): W_ (;!¡ 'j. --- 55.293767% . / Subtotal of Armstrong Alaska, Inc. interest: 99.526600% / 3', j,- O~ Page 1 of 1 Exhibit "H" to ADL 355024 Special Joinder Agreement Conoc~hill¡ps Alaska, Inc. Exhibit II A II to 355024 Farmout Agreement 10-14-04 04060201000 . . STATE OF ALASKA // ALASKA OIL AND GAS CONSERVATION COMMISSION/! NOTICE OF CHANGE OF OWNERSHIP 20 AAC 25.022 "---~m~'" ..~ \. c"-! 1. Operator Name: 2. Address: 3. Notice is hereby given that the owner U ' landowner assigned or transferred interest in the property indicated below: U . of record for the oil and gas property described below has Property Designation: Legal description of property: Field or Unit: ¡(~ ¿', r---' ~~\ d? Ý ~.C~ ~~y.<f.:5 4. Effective date of assignment or transfer: 5. Percentage interest assigned or transferred: Property plat attached 0 6. Assignee or Transferee: Address: 7. or Transferor: Address: 8. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signature: Date: Printed Name: Title: Form 10-417 Rev.10/2003 . . ,/(µ"$ f~. !r''$~ ~ K- It( ÞQ ~ ,,",.,. .J ¿)(.() J1.4..r - ;'f I( 0 tv~~ ¿;-¡r '""?' _. ··~:~Ò ~' STATE OF ALASKA ALASKA Oil AND GAS CONSERVATION COMMISSION DESIGNATION OF O~OR 20 AAC 25.020 c- 1. Name and Address of Owner: ~, f"~: 7f( .3 2. Notice is hereby given of a designation of operatorship for the oil and gas property described below: Legal description of property: Property Plat Attached: o 3. Name and Address of Designated Operator: 4. Effective Date of Designation: 5. Acceptance of operatorship for the above described property within all attendant responsibilities and obligations is hereby acknowledged: Signature Date Printed Name 6. The Owner hereby certifies that the foregoing is true and correct: Title Signature Date Printed Name 7. Title Approved: Commissioner Date Approved: Commissioner Date Approved: Commissioner Date (Requires approval by two Commissioners) Form 10-411 Rev.10/2003 Submit in duplicate RE: . . Unocal has complied with this request today. Scott Gutberlet Unocal Alaska Planning & Evaluations Manager North Slope Resources sgutberlet@unocal.com (907) 263-7865 (907) 223-3861 (907) 263-7607 Cell Phone FAX -----Original Message----- From: Ed Kerr [mailto:ed@armstrongoilandgas.com] Sent: Thursday, February 24, 2005 12:51 PM To: RL Skillern; Paul K. Wharton; Scott S. Gutberlet Cc: steve davies@admin.state.ak.us; Dave Henke Subject: Gentlemen: In order for KMG and AAI to move forward in preparation for drilling a test well on ADL 355024, the AOGCC is requiring us to have your three respective companies execute the attached Notice of Change of Ownership forms. Please note there is an individual form for each of your respective companies. We ask you to please execute in the space provided under Article 8 and immediately courier over to the AOGCC. It should go to Stephen Davies if it is sent tomorrow (25th), if it is next week it should go to Bob Crandell. The effective date is set at March 1st, because it is coincident with the effective date of our assignments, however you should date your signature on the date you execute the form. I apologize for the inconveinence and want to thank all of you for your assistance in this matter. If you have any questions or comments, please feel free to give me a call. Yours truly, Ed Ed Kerr Vice President of Land and Business Development (303) 623-1821 CONFIDENTIALITY NOTICE: The information contained in this message is for the exclusive use of the addressee and may contain confidential, privileged and non-disclosable information. If the recipient of this message is not the addressee, or a person responsible for delivering this message to the addressee, the recipient is strictly prohibited from reading, downloading, photocopying, distributing or otherwise using this message, its contents or attachments in any way. If you have received this message in error, please notify Ed Kerr immediately by replying to this e-mail and delete the message from your mailbox. Thank you. ] of 1 2/25/2005 12:49 PM Re: Operatorship - ADL 355024 . . David, I will be out of the office beginning this afternoon and continuing through March 3rd. Bob Crandall of AOGCC will be the geologist working to finish the administrative review ofthe Kigan 1 permit to drill application. His phone number is 907-793-1230. I just want to reiterate what I said in my voice mail message of 2/23/05 to you to make sure that all ownership / operator issues are covered: 1. Notice of Change of Ownership forms signed by BP, CPAI and Unocal are needed. These documents are beginning to arrive. 2. Designation of Operator forms from Armstrong, ExxonMobil and XTO designating Kerr-McGee as the operator for ADL 355024 are needed, unless the unit operating agreement has been amended to allow Armstrong to designate an operator for this particular lease. Sincerely, Steve Davies AOGCC 1 of 1 2/25/20052:01 PM __. !EB-25-2005 FRI 1. AM UNOCAL LAND F~O. 907 263 7698 p, 01 "" -. . . \... Unceal Alaska 909 W. 9th Ave Anchorage,N< 99501 Mailing: P" O. Box 196247 Anchorega, Alaska 99519 SWltchbøard: (907) 276-7800 ~ Floo(Land Fax: (807) 263-7698__.. . ... . ... UNOCALe tŒCE\VED Fax Mèss.ag'e: .. TOI <s~~v e . ~ \J: ~.;; Co~",,, I} ð G-f'... ç...,. ., .axs -;J., 7(p~7 5.'/.) ...... ..7 ~3 - I ~? f.. ~ ~I .. ;2-.';¡S -.05 FEB 2 5 2005 "'QI'Gllc.C&~ dlr~' ~..... ..J v.di~-\-;R~ - ..... lMOcaI AJaska ~ . . ....-... . P.. 901-263-7698 . - /" ~ ,," ~('1 ""ß-- ? I f.n ~ ._ ~ -P- PaQ881~ud~CoYer~ ~. [J ...... [] for.... [] ....... Comment C ...... ~ [J ...... a.c,cl- .. ~iI. . ~.I\,-"",þ~ _...'S~~ -- ~..~4..J ;~ ~ ~ ().~ ~·1/~~J. ~~ I)~ Þr, fa i'-~ ~~- .... -.-.-...;;". .-&:." ... -" - .. ---.. \'. - ... . . - ~EB-25~2005 FRI 1~ AM UNOCAL LAND .-, ,..J"" "'10_. F~O, 907 263 7698 P, 02 -1. OpIr.rtÞr Name: ConocoÞhillips Ala~ka, I~c. until March 1, 2005 Kerr~McGee Oil' Gas Corporation e££ecti~e March 1, 2005 ConocoFhill1:ps AlasKa, ~nc. . Kerl--Mc(jse vil 411· Ga:j C{.J..r:u.Q.Li-uH 700 G Street, 'ATO 1470 16666 Northchase POBox 1003-60 . HOUstdn, TX 77060 Anchoraae. AK 99510-0360 3. Notice is tie~ given tnal1lÌé owner 119 .¡lfl(jåWl1Or a,signed or tr'ö!ln:iferred interest in the pmpetty indicated belðW: STATE OF AlASKA AlASKA OIL AND GAS CONSERVATION COMMISSION NOTICE OF CHANGE OF OWNERSHIP _ _ 2.0 MC 25.022 2. AddI"$:$: ¡..J . gf ",¡¡olif tor Ihe- ~R am' gill p~ described Þe/ow nãs Propeny DesigMatign; ADL 355024 Legal desa'tptJcn of property; Fl.!!! or Unit Portions of ADL 355024 Insofar and only insofar as said lease covers lands outsIde the Partlclpatrng Area for tf1e Kuparuk River Unit: T14N, R8E; UMIAT MERIDIAN See 24: Protracted, -All ~640 aes See 25: Protracted, All . 640 acs See 36; Protracted, All . 640 sea . T14N. -R9E, UMIAT MERIDIAN Sec 19: Protracted, AJî':617 ace Sec 30: Protracted, AII- 620 aes See 31: Protracted, All . 623 acs Containing approximately 3,780 acres, more or less PrnpØfty plat attaQted . ¡---- .'""11' 15. Percentage Interest assIgnø(J or lraMremad= , 4.9506' O' - 4. Ei'Ié(:Í¡ÌIe date of asaignmert! or trafl5ter:·· - Haren 1, 2005 B. ~~gnee or Trarl$feree; Armstrong Alaska, Inc. 100 17£h·S~reetf Suite Denver, CO 80202 1400 Address: 7. ASSIgnor or Tra nsfßror. Union Oil Company of ·California. A¡:Id¡e,$; 909 We5t ~th Avenue Anchorage, AX 99501 8. I herëby certify that /tie foregoing is true and ~ to tné beet of my 1<n00000ge. S\gnallire:_ ~ a-1~h-.,. Printed Name: . J V\.4 ~ t"L..... __ f?¡ _So iqy),. -e k..__ Date: .,;J -:. .;(, 5 "-1)- ~ "t~: L~ of. S f<' Ct f.. /, ~~ ¡) n ~ ¿; _ _"',. _ , h/0..s/(';Q'I,. F'orm 10----417 RElv.1012003 F.EB-25-2005 FRI 1. AM UNOCAL LAND F.O. @~&~] @j &~@j!jJJ DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS 907 263 7698 P. 03 FRANK H. MURKOWSKl GOVERNOR 550 WEST lH A VeNUE, SUITE 800 ANCHORAGE, ALASKA 99501-3560 PHONE: (907) 269-8800 FAX: (907) 269-8938 February 18, 2005 Judy A. Stanek FfB 2 2 2005 Assignor: Union Oil Company of California Attn: Land Manager P.O. Box 196247 Anchorage, AK 99519~6247 Oil and Gas Lease ADL 355024 Assignee: Armstrong Alaska, Inc. 700 17U\ Street, Suite 1400 Denver, CO 80202 Assignment Application. Appro"ed The Director approved an application for assignment of 4.95060 working interest, in Segment 2 only, in the above lease from Union Oil Company of California to Armstrong Alaska, Inc. on February 17, 2005, effective March 1 2005. Union Oil Company of California retains 0.2970360 overriding royalty interest in the above lease. This assignment is approved as to the working interest only and does not constitute approval or acceptance of any stipulations or attachments to the assignment instrument. An approved assignment is enclosed. JJl.~U~ Dianna Lewis Natural Resource Specialist Enclosure DLJd1/355024~ 1 "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." F~B-25-2005 FRI 19 AM UNOCAL LAND F.O. ..907 263 7698 P. 04 DO&G 25-84 (LEASE ASSIGNMENT) Revised 12/01 ONR #10-113 LEASE ADL . 15.5024 EFFECTIVE DATE OF LEASE .6/11198~..... Is this lease producing? ....LYes _no STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS ASSIGNMENT OF INTEREST IN OIL AND GAS LEASE The undersigned assignor t,Inion Oil Company.~fÇalif~rnia.. .... whose address is P.O. Box 196247, Anchora~e, AK 99519, as Owner of ... .~:_9?960 .. ,. . ~ .. ---......."... '.-- -... p~rcent of the lease's working interest does hereby assign to whose address is Armstrong Alaska, Inc. . the assignee, 700 17th Street, Suite 1400. Denver. CO 80202 .. .. .. -..- - I. 2. 4.95060 percent working interest; 0.00 percent overriding royalty interest. 3. The assignor is retaining o percent of the lease's working interest. 4. The assignor is retaining _..29703_6.. _ percent of overriding royalty interest. 5. LANDS AFFECTED by this assignment of interest (Attach Exhibit A if necessary) ~~~. T 14N, R 8 & 9 E. ~ Méfidian, Alaska SEE A TT ACHED EXHIBIT A containing 3,780 acres, mare Or less. The Notification Lessee for the purpose ofreceìving any and all notices from the State of Alaska in connection with the lease wíll be: Name Attn: City, State, Zip We, the undorsigned, request the approval of this assigrnnent application. We attest that this application discloses all parties receiving an interest in the [ease and that it is filed pursuant to II AAC 82.605 and 11 AAC 82.6 t 5 , We further attest that all parries to this agreement are qualified to transfer or hold an interest in oil and gas leases pursuant to 11 AAC 82.200 and 11 AAC 82.205. Whether approved in whöle Or in part, the assignee agrees to bð bound by the provisions of said lease. ~EB-25-2005 FRI1. AM UNOCAL LAND F~O. 907 283 7898 p, 05 . _{Ì1.u.A -vlr<L ,bh ~~o~'S Signature 2/1105 .,. Date K~vin A, Tabler. Attomey·i!1-Fact Assignor's Name (prin~ or Type) & Title Union Oil Com.pany of California. Company Narne THE UNITED STATES OF AMERICA ) )55. STATE OF ALASKA ) Qualification File # _._ß ... . ... / / MS~£ - This certifies that On the 1st day of February, 2005, before me, a notary public in and for the State of Alaska.. duly commissioned and sworn, personally appeared Kevin A. Tabler, Attorney-in-Fact, to me known and known to me to be the person described in, and who executed the foregoing assignment, who then after being duly sworn according to Jaw, acknowledged to me under oath that he executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and oftìc~~_ÙII!Hó)~ay and year in rhis certificate first above written. ~t1f;;!~{).- C\ -. J;T""J ~ ~l~ .'\'f-' N~ ~ ~ [ NOTARY ~ ! My Commission expires: 2/14/06 ~:tf.\ PUBUCt/! ~}i!5 ~'" þ. _Å.,~ ú'~..!,O.I~,~· c....... ...q.p....... ~'tov ~~ c;- OF ~ ,,, __ _,.... LiIl J··:~'l.'.'m~~ ~\I\,~\~\\_ ~II oj cb ~ Date -g_d_Kerr, Vice President - t.and Assignee's Name (Print or Type) & Title An.nstrQ.l1j!; Alaska, Inc. Company Name THE UNITED STATES OF AMERlCA ) )SS. STATE OF ALASKA ) Q~a.lification file tt. 2259 This certifies that on the lO'tt day of ~..~YlJa.(W" , 2005, before me, a notary public in and for the State of Alaska., duly commissioned and sworn, person~y appeared Ed Kerr, Vice President - Land, to rot! known and kno the person described in, md who executed the foregoing assignment, who then after being duly swo. . , acknowledged to me 'under oath that he executed same freely and voluntarily for the uses and .o~f" , -:ionod. WITNESS my hand and official seal the day and year in this certificate first above WI .t¡ñ. ~ .. : Ä : IS'~'" rußUC~/ "'"'''''l.. ." ~ÒF'~ II, Cømml,sÎtlIl El.pli'l, l1/731fJ5 c~~ Notary Public I ./ My Commission expires: lI!t?J{ ~'::> APPROVAL The foregoing assignment is approved as to the lands described in item 5 thereof, effective as of the date set forth below. ~.._I- FEB 0 ~2005 Effective Dare of Assignment Mark D. Myers, Director Division of Oil and Gas, DNR, State of Alaska ~~B-25-2005 FRI 1~ AM UNOCAL LAND F~. 907 263 7698 P. 06 EXHIBIT A Assigned to Assignee the Lease interests in! Portions of ADL 355024 KRU Tract 123: :!,14N~ R8.E,JJ.miat Meridian. AJasb Section 24: Protracted, All, 640 acres; , Section 25: Protracted, All, 640 acres; r Section 36; Protracted, AU, 640 acres; ,; T14N,ª?:E~ Umiat Meridian, Alaska Section 19: Protracted, All, 617 acres; ,,- Section 30: Protracted, All, 620 acres; ,; Section 3' I: Protracted, All, 623 acres. ' P" }P' ,'O"(,e>" '?'" Containing approximately 3,780 acres, more or less. Hereinafter referred to as the "Subject Lands". The Subject Lands are burdened by the proportionate share of base royalty to State of Alaska, net profit share to State of Alaska (see below), and all other burdens of record. ~çsenin2 to Assi2ßOr its interest in and to the remaincter.. of ADL 355024. to wit: T13N, R9E, Umiat 1Y.f.~:ridi~n., ~Iaska Section 5: Protracted, AU, excluding that portion of USS 4275 within Section 5, 568 acres; Section 6: Protracted, All, 625 acres; Section 7: Protracted, All, excluding that portion ofUSS 4275 within Section 7, 575 acres; Section 8: Protracted, All, tide and submerged lands within Section 8, 32 acres. Containing approxima.tely 1,800 actes, more or less. 'Hereinafter referred to as the "Retained Portion of ADL 355024", Net Profit Share DeveloDment Account: Lease ADL 355024 contains net profit share provisions and a statement of the net profit share development account balance of Assignor for ADL 355024 as of December 31,2004 (hereinafter "ADL 355024 Development Account') has been provided to State of Alaska, Department of Natural Resources (ltDNRIt) under separate, confidential cover. No part of the existing ADL 355024 Development Account shall be allocated, attributed, or pertain to the Subject Lal1ds assigned to Assignee. The entire balance of the ADL 355024 Development Account and any further adjustments and future additions thereto shall be allocated and anributed and pertain solely to the Retained Portion of ADL 355024. The Production Revenue Account established under 11 AAC 83.209, attributable to Assignor's interest in ADL 355024, and the Net Profit Payment Account, if any, established under II AAC 83.214, attributable to Assignor's interest in ADL 355024, shall be similarly lInaffected by the assignment of the Subject Lands to Assignðe. A new ]'let profit sha.re development a.ccount shall be established fQr Assik,rnee as to the Subject Lands, the balance of which shall be $0.00 as of the effective data of the: approval of the assignment to which this Exhibit A is attached and incorporated. FW: AOGCC Ownership Change . . Subject: FW: AOGCC Ownership Change From: "Walters, David A" <waltersd@unoca1.com> Date: Wed, 02 Mar 2005 15:35:26 -0900 To: tom_maunder@admin.state.ak.us CC: "Tabler, Kevin A" <tablerk@unoca1.com>, "Stanek, Judy A" <stanekj@unoca1.com>, "Gutberlet, Scott S." <sgutberlet@unoca1.com>, Ed Kerr <ed@annstrongoilandgas.com> Tom, Re your conversation with K. Tabler this afternoon, I had been contacted by Ed Kerr separately. Long story short, we filed the attached with Steve Davies on 2/25. If you have questions, please call Judy Stanek directly. If you need additional paperwork, please contact Kevin. Dave Walters -----Original Message----- From: Stanek, Judy A Sent: Wednesday, March 02, 2005 3:16 PM To: Walters, David A Cc: 'Tabler, Kevin A' Subject: AOGCC Ownership Change Dave, Attached is the form. It was faxed to AOGCC along with the approved Assignment Application on 2/25/05. The paperwork is crooked - sorry. Judy «AOGCC Change of Ownership ADL 355024.pdf» Judy Stanek Land Specialist Unocal Alaska (907) 263-7963 Change of Ownership ADL AOGCC Change of Content-Description: Ownership ADL 355024.pdf application! octet-stream base64 Content-Type: Content-Encoding: 1 of 1 3/2/20053:42 PM . . 1. Operator Name: conocoPhillips Alaska, Inc. until March 1, 2005 Kerr~McGee oil & Gas Corporation effective March 1, 2005 2. Address: ConocoPhill.lpS Alaska, .lnc. - -i'Í.err-1VfCl:ree u11 & Ga~ C::O.L.!:UfodL.i.uu 700 G Street, ATO 14ïO 16666 Northchase POBox 100360 H¿bstön, TX 77060 Anchoraae. AK 99510-0360 3. Nobce is hereþ¥ given that the owner Œì ' landowner LJ . of record for the 01 and gas p¡operty described below has aSsigned or transferred interllliit in the property incfrcated below. STATE OF AlASKA ALASKA OIL AND GAS CONSERVATION COMMISSION NOTICE OF CHANGE OF OWNERSHIP 20 MC 25.022 Property Designation: ADL 355024 Legal descripUon of property: Reid or Unit Portions of ADL 355024 Insofar and only insofar as said lease covers lands outside the PartIcipating Area for the Kuparuk River Unit: T14N, R8E¡ UMIAT MERIDIAN See 24: Protracted, All - 640 acs ~ See 25: Protracted. All - 640 acs ' See 36; Protracted, All -: 640 aes . T14N.R9E. UMIAT MERIDIAN See 19: Protracted, AU - 617 aes' :j.;. See 30: Protracted, All - 620 acs ' tiP (;.){, See 31: Protracted. AII- 623 acs' ~.-;'. . Containing approximately 3,780 acres, more or less' Property plat attached o 4. Effeclive date 01 assignment or transfer: l1arcn 1, 2005 6. Assignee or TrarlSferee: Armstrong Alaska, Inç. AcfdTeSS: 700 17th· Street, Suite 1400 Denver, CO 80202 J5- Percentage inlerest assigned Dr transferred: 4.9506% 7. Assignor or Transferor:. Unl0n Oil Company of California Address: 909 West 9th Avenue Anchorage, AK 99501 8. hel1!by certify that the foregoing is Irue and correct to the best of my knO'Medge. Sìgnalure: ~{~" -J '^ J ~ '1- L..... A _ ç t t'\ v\. {' Ie. Date: .;; - c:2 5 .- t'J..5 Printed Name: Title; . " {J<.41 d S'fè C1 4. 11.-/1 tin ð ~ /!/¿¡..s-Ic:f^. Form 10-417 Rev_1012003 t .i .( ADL 355024 SPECIAL JOINDER AGREEMENT TO KUPARUK RIVER UNIT AGREEMENT AND KUPARUK RIVER UNIT OPERATING AGREEMENT AND OTHER AGREEMENTS AFFECTING PORTIONS OF LEASE ADL 355024 STATE OF ALASKA by and among Working Interest Owners of the Kuparuk River Unit and ARMSTRONG ALASKA, INC. .( .¡ TABLE OF CONTENTS Article 1 - Definitions............................................................................................. 2 Article 2 - Exhibits. .......................... ..... ..... ..... .... ..... ..... ..................... .................... 4 Article 3 - Joinder to KRU .....................................................................................4 Article 4 - The Subject Lands as Part of the KRU................................................. 5 Article 5 - Development Operations...................................................................... 7 Article 6 - Further Issues...................................................................................... 8 Article 7 - Waiver of Preferential Right to Purchase, Maintenance of Uniform I nterest, and Area of Mutual I nterest Rights......................................................... 8 Article 8 - Tax Matters ......................................................................................... 10 Article 9 - General Provisions ............................................................................. 10 Page 2 of 18 e( .( ADL 355024 SPECIAL JOINDER AGREEMENT TO KUPARUK RIVER UNIT AGREEMENT AND KUPARUK RIVER UNIT OPERATING AGREEMENT STATE OF ALASKA THIS ADL 355024 SPECIAL JOINDER AGREEMENT to the Kuparuk River Unit Agreement and Kuparuk River Unit Operating Agreement ("this Joinder Agreement"), is entered into by and among CONOCOPHILLlPS Alaska, Inc. ("CPAI"), BP Exploration (Alaska) Inc. ("BP"), Union Oil Company of California ("UNOCAL"), ExxorìMobil Alaska Production Inc. ("EMAP"), and XTO Energy Inc. (hereinafter collectively referred to as "the Kuparuk Owners"), and Armstrong Alaska, Inc. ("ARMSTRONG"), a party owning a working interest in a portion of lease ADL 355024 within the Kuparuk River Unit but owning no working interest in any other Kuparuk River Unit leases (each individually sometimes referred to herein as "Party" and collectively as "Parties"). WIT N E SSE T H: WHEREAS, the Kuparuk Owners own working interests in the leases comprising the Kuparuk River Unit ("KRU") and pursuant to the KRU Unit Agreement have established the Kuparuk Participating Area, the West Sak Participating Area, the Tabasco Participating Area, the Tarn Participating Area, and the Meltwater Participating Area for the development and production of certain producing formations within the KRU (herein "Existing Participating Area(s)"), WHEREAS, that certain State of Alaska oil and gas lease known as Lease ADL 355024 is held by the Kuparuk Owners, is committed to and part of the KRU, and is part of and allocated production from an Existing Participating Area (to wit, the Kuparuk Participating Area); and WHEREAS,· pursuant to the 355024 Farmout Agreements as defined herein, ARMSTRONG is or has the opportunity to become a Working Interest Owner solely of part of Lease ADL 355024, as more particular.ly defined herein ("Subject Lands"); and WHEREAS, the Kuparuk Owners entered into· that certain Kuparuk River Unit Agreement ("KRUA") and that certain Kuparuk River Unit Operating Agreement ('KRUOA"), both effective December 1, 1981, as subsequently amended; and WHEREAS, Kuparuk Owners entered into that certain Greater Kuparuk Joint Operating Agreement - Pre-Development, effective March 1, 1997 ("GKJOA"); and WHEREAS, Article 16 of the KRUOA provides for Tract Operations within the Kuparuk Participating Area ("KPA") and the GKJOA governs Tract Operations and all operations that are part of or necessary for Exploratory Operations, Appraisal .( .( Operations or G&G Projects within the Greater Kuparuk Area but excludes Area Operations within the boundaries of the Kuparuk Participating Area; and WHEREAS, the Kuparuk Owners have adopted those certain Special Supplemental Provisions to the Unit Operating Agreement for Satellite Operations dated March 1, 1997 ("Satellite SSPs"), a copy of which is attached as Exhibit E hereto, to govern KRU Development Satellite Operations and have also entered into that certain GKA EOR Operating Procedures Agreement, dated November 3, 1998, as subsequently amended ("EOR Agreement"), a copy of which is attached as Exhibit G hereto; and WHEREAS, the Kuparuk Owners have adopted numerous ballot agreements and other agreements pursuant to the KRUA in the normal cour$e of business of managing and overseeing KRU activities and operations that affect or may in the future affect activities or operations on or for the benefit of the KRU or parts thereof ("Other KRU Agreements"); and WHEREAS, ARMSTRONG, as to its Working Interest in the Subject Lands that may be acquired under the 355024 Farmout Agreements, and the Kuparuk Owners desire to enter into a Special Joinder Agreement to the KRUA, KRUOA, GKJOA, Satellite SSPs, and EOR Agreement on the terms set forth below, which will govern, as among the Parties hereto, all further exploration, delineation, development and operation of the Subject Lands, and participation in the KRU for the purposes of and during the term of this Joinder Agreement. AGREEMENT NOW, THEREFORE, in consideration of the mutual agreements set forth herein, the Parties agree as follows: ARTICLE 1 Definitions 1.1 A capitalized term not otherwise defined in this Joinder Agreement herein shall have the same meaning given that term in the KRUA, KRUOA, GKJOA, Satellite SSPs, EOR Agreement, Ballot 255, or Ballot 255A, as applicable, unless otherwise provided in this Joinder Agreement. 1 .2 Definitions. Effective Date means the first date that ARMSTRONG and all Kuparuk Owners hereto have executed this Joinder Agreement. Page 2 of 18 .t e( Unit Data means all reports, data, and information referred to or discussed in Sections 11.006, 11.007, 12.002.02, of the KRUOA. 355024 Data means all reports, data, and information derived from wells, Tract Operations, or Development Operations (as defined in the GKJOA) on the Subject Lands. 355024 Farmout Aqreements means those certain farmout agreements or other arrangements by and between various Kuparuk Owners and ARMSTRONG, by which ARMSTRONG has earned or may earn specified Working Interests in the Subject Lands. A fully executed copy of each 355024 Farmout Agreement is attached hereto as Exhibit H and incorporated herein by reference. Ballot 255 means Ballot 255 - Kuparuk Satellite Facility Sharing Ballot executed by and among the Kuparuk Owners, a copy of which is attached hereto as Exhibit B collectively with any and all future amendments, replacements, or superseding ballots. Ballot 255A means Ballot 255A - Backout Model and Backout Procedures executed by and among the Kuparuk Owners, a copy of which is attached hereto as Exhibit B, collectively with any and all future amendments, replacements, or superseding ballots. EOR Aqreement means that certain GKA EOR Operating Procedures Agreement executed by and among the Kuparuk Owners, a copy of which is attached hereto as Exhibit G, collectively with any and all future amendments, replacements, or superseding agreements. Workinq Interest means that interest as shown or recorded on the Department of Natural Resource Division of Oil and Gas lease records for a particular Lease as IIworking interest. II Gross Production Interest means the proportionate share of total Unitized Substances from a Lease to which a Party is entitled based on its Working Interest. Cost Participation Interest means that proportionate share of total costs and expenses associated with a Lease and activities and operations associated therewith, for which a Party is responsible for payment. GKA Aliqnment Agreements means collectively that certain Alignment Agreement - Greater Kuparuk Area effective March 1, 1997 by and between BP and CPAI; that certain IIAAI/BPXA/UNOCAL Alignment Agreement - Greater Kuparuk Areall dated effective January 1, 1997 by and among CP AI, BP, and UNOCAL, and that certain AAI/BPXA/CHEVRON/MOBIL Alignment Agreement dated effective January 1, 1997 by and among CPAI, BP, Chevron USA Inc., and Page 3 of 18 .( .\ Mobil Oil Corporation as predecessor in interest to ExxonMobil Alaska Production, Inc. ARTICLE 2 Exhibits The following Exhibits are attached hereto and incorporated by reference as if fully set forth herein: Exhibit A: Map of Kuparuk River Unit and Subject Lands Exhibit B: Kuparuk River Unit Ballot Agreements 255 and 255A Exhibit C: Kuparuk River Unit Agreement (KRUA) Exhibit D: Kuparuk River Unit Operating Agreement (KRUOA) Exhibit E: Special Supplemental Provisions to the Unit Operating Agreement for Satellite Operations (Kuparuk River Unit, State of Alaska) Exhibit F: Greater Kuparuk Joint Operating Agreement (Pre-Development) (GKJOA) Exhibit G: EOR Agreement Exhibit H: Fully executed copy of each 355024 Farmout Agreement, and a statement of Subject Lands Working Interests Resulting from 355024 Farmout Agreements, as of the Effective Date of this Joinder Agreement ARTICLE 3 Joinder to KRU 3.1 By execution of this Joinder Agreement, ARMSTRONG hereby ratifies, joins in subject to the ferms provided herein and assumes all obligations as to its Working Interest in the Subject Lands, the KRUA, the KRUOA, the Satellite SSPs, the EOR Agreement, and the GKJOA, to the extent such agreements apply to and affect the Subject Lands. The Parties shall, as necessary, provide any additional documents evidencing the ratification to the Commissioner for the KRUA and KRUOA. If this Joinder Agreement is not executed by ARMSTRONG and all of the KRU Owners on or before December 31, 2004, this Joinder Page 4 of 18 .( .1, Agreement shall terminate, any and all waivers given herein shall be deemed void, and the Parties shall have no further obligations hereunder. 3.2 Upon ARMSTRONG's ratification of documents listed in Section 3.1, ARMSTRONG shall become a KRU Working Interest Owner subject to and bound by the terms of this Joinder Agreement, the KRUA, the KRUOA, the GKJOA, the Satellite SSPs, the EOR Agreement, and all Other KRU Agreements, including any relevant portions of the GKA Alignment Agreements, to the extent such agreements apply to and affect the Subject Lands. 3.3 ARMSTRONG acknowledges, agrees and represents that its execution of this Joinder Agreement is made after informed consideration and evaluation and at ARMSTRONG's sole risk, in conjunction with its separate execution of the 355024 Farmout Agreements. ARTICLE 4 THE SUBJECT LANDS AS PART OF THE KRU 4.1 If the Commissioner (a) at any time prior to Armstrong commencing operations on the Well requires that ADL 355024 be segregated into the Subject Lands (or any part thereof) and those lands not subject to the 355024 Farmout Agreements (or any part thereof), under such terms that any part of ADL 355024 as it existed on the day prior to execution of the first in time 355024 Farmout Agreement is not held by or shall not continue to be held by production allocated from any Existing Participating Area on such date prior, or (b) proposes, as part of an approval of an action related to the Subject Lands, any new required provision or term on ADL 355024 or the KRU that has a material adverse effect that the Kuparuk Owners deem unacceptable, then this Joinder Agreement shall terminate upon such segregation or proposed imposition of a new unacceptable term or provision. It is agreed that Armstrong shall not commence operations on the Well until such time as the Commissioner of DNR has approved the assignments called for under the 355024 Farmout Agreements. 4.2 Under one or more of the 355024 Farmout Agreements, ARMSTRONG has the opportunity to drill at least one well in, on or to the Subject Lands in order to earn and retain Working Interest in the Subject Lands. ARMSTRONG or its permitted assigns, which are limited to Pioneer Natural Resources Alaska, Inc.and/or Kerr- McGee Oil & Gas Corporation and subject to all other terms and conditions herein, shall be the designated Tract Representative for the first such well drilled to earn Working Interest for ARMSTRONG in the Subject Lands ("Well") and, as operator of a Tract Operation pursuant to Article 16 of the KRUOA, shall have the right to drill and, in its discretion and as appropriate, test, evaluate and conduct pilot production operations for the Well to determine if the Well is capable of sustained commercial production of Unitized Substances as provided in Section Page 5 of 18 .( e( ·16.005 of the KRUOA. ARMSTRONG shall submit to the Unit Operator, for approval on behalf of the Kuparuk Owners, a· comprehensive well drilling program (/lWell Plan/l)for the Well as required pursuant to Section 16.005 of the KRUOA" prior to commencement of any activities involving drilling of the Well. The Operator having satisfied itself that the Well Plan appears to Operator to be safe, prudent, and consistent with North Slope Alaska industry standards, the approval of theWe1l' Ptan'snaU not be·tmrea$Onabiy-de1ried. 4.3 In the event that: a. The Well proves capable of sustained commercial production of Unitized-, Substances; and b. ARMSTRONG desires to have the Unit Operator take over operation of, the Weii andfurthèr appraisal and development of the Subject lands; and - c. The Unit Operator agrees, in its discretion, tcr take over operation of the Well and further appraisal and development of the Subject Lands, then, the Kuparuk Owners participating in the Well, if any; and ARMSTRONG shall petition the Commissioner for a separate Participating Area within the KRU, even if such reserves are or may be in hydrocarbon communication with a producing formation in an Existing Participating Area. The Satellite SSPsshall be formally adQptedand'~pliedto anysl,lch Participati~gArea;._ 4.4 In the event that the Well proves capable of sustained commercial production of Unitized Substances, and Armstrong and any other -'Partiês participating in the Welf determine that Armstrong should operate the Weiland further appraise and develop the Subject lands .as operator, the participating .parties shall petition the Commissioner to segregate the Subject Lands into ·a new lease,contract the ~. segregated Subject Lands from the KRU, and form a separate unit or commit the .~ segregated la0ds to a unit other ~han the KRU. NOtw.· ithstanding an~hing to the ~ . "; contrary here,n. should. the Subject Lands' or' anylthereof - be segregated and' .~.. . contracted out of the KRU, said lands shall no longer be encumbered by any of -. the following agreements: the KRUA, the KRUOA, the GKJOA, the Satellite SSPs, the EOR Agreement and all Other KRU Agreements, including any relevant portions of the GKA Alignment Agreements, and this Joinder" Agreement. 4.5 Provided the Subject Lands have not been segregated and contracted out of the KRU pursuant to Article 4.4 above, .if the Commissioner at any time orders an expansion of an Existing Participating Area that includes the Subject Lands, the Parties "expressly agree that, as among the Parties hereto, notwithstanding' any expansion of the Existing Participating Area to include the Subject Lands, the Subject Lands shall be assigned zero percent (0%) Tract Participation within the .particular Existing Participating Area. Except as maybe specifically provided otherwise herein and notwithstanding any Tract Participation schedule imposed by the Commissioner or the Commissioner's delegate fôr any expansion of an Existing Partic;patîng'Area,~as' among'the'Parties;ihe-Subjed Lands,' rollectivefy.. JIa A4 Page60f"'t8- ~'rJiI ,~~ ~\? ~/ r~~ · e( 16.005 of the KRUOA. ARMSTRONG shall submit to the Unit Operator, for approval on behalf of the Kuparuk Owners, a comprehensive well drilling program ("Well Plan") for the Well as required pursuant to Section 16.005 of the KRUOA, prior to commencement of any activities involving drilling of the Well. The Operator having satisfied itself that the Well Plan appears to Operator to be safe, prudent, and consistent with North Slope Alaska industry standards, the approval of the Well Plan shall not be unreasonably denied. 4.3 In the event that: a. The Well proves capable of sustained commercial production of Unitized Substances; and b. ARMSTRONG desires to have the Unit Operator take over operation of the Well and further appraisal and development of the Subject Lands; and c. The Unit Operator agrees, in its discretion, to take over operation of the Well and further appraisal and development of the Subject Lands, then, the Kuparuk Owners participating in the Well, if any, and ARMSTRONG shall petition the Commissioner for a separate Participating Area within the KRU, even if such reserves are or may be in hydrocarbon communication with a producing formation in an Existing Participating Area. The Satellite SSPs shall be formally adopted and applied to any such Participating Area. 4.4 In the event that the Well proves capable. of sustained commercial production of Unitized Substances, and Armstrong and any other Parties participating in the Well determine that Armstrong should operate the Well and further appraise and develop the Subject Lands as operator, the participating Parties shall petition the Commissioner to segregate the Subject Lands into a new lease, contract the segregated Subject Lands from the KRU, and form a separate unit or commit the segregated lands to a unit other than the KRU. Notwithstanding anything to the contrary herein, should the Subject Lands or any thereof be segregated and contracted out of the KRU, said lands shall no longer be encumbered by any of the following agreements: the KRUA, the KRUOA, the GKJOA, the Satellite SSPs, the EOR Agreement and all Other KRU Agreements, including any relevant portions of the GKA Alignment Agreements, and this Joinder Agreement. 4.5 Provided the Subject Lands have not been segregated and contracted out of the KRU pursuant to Arti.cle 4.4 above, if the Commissioner at any time orders an expansion of an Existing Participating Area that includes the Subject Lands, the Parties expressly agree that, as among the Parties hereto, notwithstanding any expansion of the Existing Participating Area to include the Subject Lands, the Subject Lands shall be assigned zero percent (0%) Tract Participation within the particular Existing Participating Area. Except as may be specifically provided otherwise herein and notwithstanding any Tract Participation schedule imposed by the Commissioner or the Commissioner's delegate for any expansion of an Existing Participating Area, as among the Parties, the Subject Lands, collectively, Page 6 of 18 e( .( shall be allocated one hundred percent (100%) of any and all Unitized Substances produced from the Subject Lands, and shall be allocated zero percent (0%) of any and all Unitized Substances produced from an Existing Participating Area. a. All of the Unitized Substances allocated to the Subject Lands shall be allocated among the Parties in proportion to their Gross Production Interests in the Subject Lands. b. All production (including Unitized Substances and produced water) volumes shall be allocated to the Subject Lands based on well tests or any other method deemed appropriate by the Unit Operator and accepted by relevant regulatory authorities. All well tests shall be conducted in the same manner as the well tests for other KRU wells, including but not limited to adjustment for pressure and temperature at test conditions. c. All costs and expenses shall be allocated in proportion to each Party's applicable Cost Participation in the Subject Lands. 4.6 The Parties further agree that: a. ARMSTRONG shall have no Voting Interest in any Existing Participating Area under the KRUOA. Notwithstanding the foregoing, ARMSTRONG shall have voting rights pursuant to its Development Satellite Voting Interest under the Satellite SSPs if and when the Subject Lands are incorporated into a newly formed Participating Area. For voting on General Unit Matters, the Parties' respective Voting Interests shall be as provided in Part 4.101 (b) of the KRUOA. b. Nothing in this Joinder Agreement shall require or obligate the Unit Operator or any Kuparuk Owner, or ARMSTRONG to appeal or to not appeal any decision of the Commissioner requiring the joinder of the Subject Lands in or to an Existing Participating Area. c. ARMSTRONG shall have no right to Unit Data derived from or directly relating to, lands outside of the Subject Lands except (a) to the extent that such Unit Data on or within the KRU lands immediately adjacent to and contiguous to the Subject Lands may be reasonably necessary to determine if a well in or on the Subject Lands has penetrated an accumulation of hydrocarbons in communication with a producing formation in an Existing Participating Area; or (b) as the. Kuparuk Owners may, in their sole discretion, agree in any other circumstance. In the event that any such Unit Data is made available to ARMSTRONG, ARMSTRONG shall be bound by all confidentiality requirements of the KRUOA that apply to Unit Data. Page 7 of 18 .( e( d. Those Kuparuk Owners not retaining any Working Interest in the Subject Lands shall, upon written request to ARMSTRONG, be provided a copy of any and all 355024 Data, without further approval pursuant, to Section 12.003 of the KRUOA or Section 5.4 of the GKJOA. All such 355024 Data provided shall be held confidential by the receiving Parties under the same terms as provided in said Sections. e. ARMSTRONG expressly waives and agrees that it shall not have any preferential right(s) that might be otherwise available under the terms of the KRUOA or GKJOA to purchase or otherwise acquire any interest in any lease other than the Subject Lands. f. ARMSTRONG expressly waives and agrees that it shall not have any rights of acquisition provided pursuant to any Area of Mutual Interest' provision included in any of the GKA Alignment Agreements for any lands except for those lands within the Subject Lands. g. ARMSTRONG expressly waives and agrees that it shall not have any right to assert or enforce the maintenance of uniform interest provision provided pursuant to the GKJOA. h. If during the term of this Joinder Agreement, the Subject Lands are included in an Existing Participating Area, ARMSTRONG shall not be required to pay for any Unit Expenses or Investment Costs incurred prior to the Effective Date for the purpose of equalizing equity in such Expenses or Costs commensurate with the working interest percentages acquired under the 355024 Farmout Agreements in the Subject Lands so long as the provisions of this Joinder Agreement are in effect and applied. ARMSTRONG shall not have any right to initiate a determination or redetermination of interests in an Existing Partcipating Area. i. All Parties participating as Working Interest Owners in any wells or other activities in, on, or for the benefit of the Subject Lands pursuant to this Joinder Agreement shall be responsible for all costs of all facilities, equipment, and services necessary to develop, maintain, operate, and abandon and restore the Subject Lands. All equipment or services that are not provided for under the terms of Ballot 255 and are provided by the Unit Operator to ARMSTRONG as Tract Representative for any Tract Operation shall be charged pursuant to KRU Ballot Agreement 260B, as amended, replaced, or superseded in the future, if such equipment or services are provided for under the terms of KRU Ballot Agreement 2608. Any Tract Operation conducted hereunder shall be allocated a proportionate share of the Annual Support Fee as provided pursuant to Exhibit I of the KRUOA, to cover indirect/overhead costs associated with administering this Joinder Agreement. Page 8 of 18 .¡ e( j. All activities and operations carried out in, on or for the benefit of the Subject Lands pursuant to this Joinder Agreement shall be carried out in such a manner and timing that ongoing operations related to Existing Participating Area(s) shall not be impeded or interfered with. k. Notwithstanding anything to the contrary in Sections 5.300 and 13.004 of the KRUOA, no well drilled in or on the Subject Lands shall be acquired for Unit Operations. ARTICLE 5 Development Operations 5.1 As among the Parties, Development Operations (as defined in the GKJOA) on the Subject Lands under this Joinder Agreement shall be conducted as Satellite Operations, without regard to whether the Subject Lands are included in an Existing Participating Area or a newly formed Participating Area within the KRU, and shall further be governed by the terms and fees set forth in the Satellite SSPs, Ballot 255 and Ballot 255A. Ballots 255 and 255A are attached hereto as Exhibit B. 5.2 Nothing in this Joinder Agreement shall in any way convey, assign or transfer any interest in or rights to, including any equitable interest or third party beneficiary rights, any existing production facility, the KRU Power Plant, the KRU Seawater Treatment Plant, the KRU Topping Plant, or any other existing facility at or within the KRU. 5.3 In the event that the Subject Lands or any part thereof are segregated from ADL 355024 and no longer committed to the KRUA, such as pursuant to the sections 4.1 or 4.3 above, or as otherwise by mutual agreement of the affected Parties, ARMSTRONG understands and acknowledges that significant legal and commercial issues and/or obstacles may exist with respect to any possible agreement on KRU production facility access for non-KRU production. Such issues and obstacles may include, without limitation, the terms of access should access be permitted, unanimous Kuparuk Owner approval, and State of Alaska approval(s) as necessary, which approvals and actions are outside the control of the Kuparuk Owners or anyone Kuparuk Owner. No agreement with respect to KRU facilities access for non-KRU production is contained, implied, or intended under this Joinder Agreement. Furthermore, ARMSTRONG acknowledges and agrees that it bears the risk that no agreement respecting any access to KRU production facilities may ever be entered into; and in such event, neither Kuparuk Owners or anyone Kuparuk Owner nor ARMSTRONG shall have any claim for damages against either ARMSTRONG or any Kuparuk Owner or Kuparuk Owners, respectively, resulting from the lack of development in or on or lack of production from the Subject Lands. Additionally, ARMSTRONG acknowledges Page 9 of 18 .( .( and agrees that it bears the risk that any finally agreed terms of KRU production facility access may render the development of the Subject Lands non-economic, or may significantly challenge or impair the economic development of the Subject Lands; and in such event, no Party shall have any claim for damages against any other Party, resulting from the lack of development in or on or lack of production from the Subject Lands. If the development of the Subject Lands occurs outside the KRU, then Armstrong and any other parties participating in such development shall have the right to gather, treat, process, transport, market and sell the production from said development on the Subject Lands outside the KRU in accordance with such terms and conditions as are acceptable in each party's sole and absolute discretion. ARTICLE 6 FURTHER ISSUES The Parties acknowledge and agree that issues or matters associated with activities or operations on or for the benefit of the Subject Lands (up to and including but not limited to all abandonment and dismantlement, restoration and rehabilitation activities and obligations) or production from the Subject Lands, which are not specifically addressed in this Joinder Agreement or any other agreement entered into prior to the Effective Date by the Kuparuk Owners and affecting activities or operations on or production from the Subject Lands ("Further Issues") may arise, directly or indirectly, from the status of the ARMSTRONG as owner of new or additional Working Interests in the KRU who has not paid for or equalized prior costs, expenses, or investments in or participated in equity determinations or GKA Alignment Agreements in the KRU commensurate with or applicable to such Working Interests. Further Issues, if any, are not resolved or agreed in this Joinder Agreement. The Parties agree that for such Further Issues, the Parties shall engage in good faith and timely negotiations to obtain mutual agreement subject to the following requirements: a. No KRU Owner shall be obligated or required, in order to obtain mutual agreement on such Further Issue(s), to change, amend, alter, or waive any right or status it may have under or pursuant to the KRUA, KRUOA, GKJOA, SSPs, EOR Agreement, any applicable Alignment Agreement provision, this Joinder Agreement, or any other applicable agreement existing on the date of execution by that Kuparuk Owner of this Joinder Agreement. b. Resolution of Further Issue(s) shall not be used to delay or impede operations on or for the benefit of the Subject Lands. Page 10 of 18 .( e( ARTICLE 7 Waiver Of Preferential Riqht to Purchase, Maintenance of Uniform Interest, and Area of Mutual Interest Riqhts 7.1 Section 19.101 of the KRUOA addresses the preferential right to purchase that each KRU Working Interest Owner may exercise if a transfer is proposed to be made within the KRU. To the extent not already done so, each Kuparuk Owner waives receipt of the required notice and informqtion and the exercise of its respective preferential rights to purchase provided under Section 19.101 of the KRUOA as such rights apply to the transfers of rights and interests in the Subject Lands contemplated by the 355024 Farmout Agreements attached hereto as Exhibit H (including rights to reassignment of interests back to the initially conveying Kuparuk Owner, if any, that may be provided in those 355024 Farmout Agreements, upon presentation of a verified copy of the executed 355024 Farmout Agreement evidencing such provision at the time reassignment is requested) . 7.2 Section 17.2 of the GKJOA provides that the Parties shall maintain a uniform and undivided Working Interest in the Greater Kuparuk Area. The transactions contemplated by the 355024 Farmout Agreements violate this provision. To the extent not already done so, the Parties specifically waive the requirement of said Section 17.2 insofar, and only insofar as it applies to the transactions contemplated by the 355024 Farmout Agreements (including any reassignments as provided therein). No further notice is required by any Party with regard to any reassignment of interests that may be provided in those 355024 Farmout Agreements upon presentation of a verified copy of the executed 355024 Farmout Agreement evidencing such provision at the time reassignment is requested, and each Party agrees that it shall not take any action pursuant to Section 17.2 of the GKJOA to prevent the transfers so disclosed in and carried out pursuant to and in compliance with the 355024 Farmout Agreements. 7.3 All Parties waive any rights to exercise any Area of Mutual Interest rights that may be available pursuant to the GKA Alignment agreements with regard to the transfers of rights and interests in the Subject Lands contemplated by the 355024 Farmout Agreements (including rights to reassignment of interests back to the initially conveying Kuparuk Owner, if any, that may be provided in those 355024 Farmout Agreements, upon presentation of a verified copy of the executed 355024 Farmout Agreement evidencing such provision at the time reassignment is requested). 7.4 Notwithstanding the foregoing, the Parties agree that it is the intent of the Parties to maintain the Working Interest, Gross Production Interest and Cost Participation percentages of ARMSTRONG and the Kuparuk Owners retaining any Working Interest in the Subject Lands that result after the conveyances contemplated by the 355024 Farmout Agreements (including any reassignment Page 11 of 18 .¡ .( of interests) have been accomplished, uniformly across the Subject Lands before or during the term of this Joinder Agreement and that all Parties shall comply with that intended result and no further waivers of the maintenance of uniform interest, the preferential right to purchase, or the area of mutual interest provisions are contemplated or approved herein. The Working Interest percentages in the Subject Lands resulting from the 355024 Farmout Agreements on the Effective Date of this Joinder Agreement are shown in Exhibit H hereto. Provided however, that notwithstanding the foregoing, ARMSTRONG may subsequently assign a uniform interest in the Subject Lands to the permitted assigns as described in Section 4.2 without the need to obtain a further waiver of the Maintenance of Uniform Interest provision of the GK JOA, provided that such transfer (i) occurs within one year of the Effective Date of this Agreement; (ii) is an assignment of an undivided working interest in the Subject Lands that maintains a uniform interest throughout all of the Subject Lands; (iii) is conditioned upon the assigns of such interests taking their respective interests in and to the Subject Lands subject to the terms and conditions of the 355024 Farmout Agreements and subject to this Joinder Agreement; and (iv) shall be subject to applicable preferential rights to. purchase pursuant to section 19.101 of the KRUOA and Area of Mutual Interest rights that may be available pursuant to the GKA Alignment agreements; and upon finalization of any such transfer, ARMSTRONG shall provide written notice to Kuparuk Owners within fifteen (15) days of such transfer. ARTICLE 8 Tax Matters The operations and activities associated with the Subject Lands shall be subject to the Kuparuk River Unit Tax Partnership if applicable, or if not, under a separate tax partnership in the form of the Kuparuk River Unit Tax Partnership. In accordance with Section 22.003 of the KRUOA, ARMSTRONG and the other Parties will be allocated the tax benefits and burdens arising from their contributions to the Subject Lands in accordance with their contributions thereto. ARTICLE 9 General Provisions 9.1 Term. This Joinder Agreement shall be effective on and from the Effective Date and shall terminate on: a. The first day that ARMSTRONG or one of its permitted assigns or other successors approved as provided herein does not own any Working Page 12 of 18 ·( . Interest in any of the Subject Lands acquired pursuant to the 355024 Farmout Agreements; or b. As to any of the Subject Lands or portion thereof that is contracted out of the KRU, such as provided in Sections 4.1 and 4.4 herein or by mutual agreement of the Parties, the date that the Subject Land or such portion thereof is contracted out of the KRU; or c. The date that the last-in-effect 355024 Farmout Agreement terminates or expires without ARMSTRONG having earned a fully vested Working Interest; or d. The date that this Joinder Agreement is terminated as otherwise provided herein; whichever occurs first. 9.2 Counterpart and Facsimile Execution. This Joinder Agreement may be executed in counterparts, all of which shall be regarded as a single instrument. This Joinder Agreement is not effective until signed by 100 percent of the Kuparuk Owners and ARMSTRONG. In the event this Joinder Agreement is circulated and executed by facsimile transmission, the signatures of the Parties shall be considered as original and self-proving for all purposes under the applicable law, subject to the condition that all Parties providing an executed signature page by facsimile shall provide the original signature page by U.S. mail, return receipt requested, or personal delivery service, as soon as feasible thereafter. 9.3 Authority to Enter Into Agreement. Each Party represents and warrants that the entering into, execution, and performance of this Joinder Agreement have been properly authorized and approved by all necessary corporate or other governing authority action. By executing this Joinder Agreement, each Party respectively represents and warrants that the person executing this Joinder Agreement on behalf of such Party is fully authorized to bind such Party to this Joinder Agreement, and that entering into this Joinder Agreement does not violate any contract, rule, obligation, or court order applicable to such Party or by which such Party is bound. 9.4 Conflict. Except as specifically provided herein, this Joinder Agreement does not amend or modify in any way the KRUOA, the KRUA, Ballot 255, Ballot 255A, EOR Agreement, the GKA Alignment Agreements (including the GKJOA), or any other àpplicable agreement affecting the Subject Lands existing on the Effective Date of this Joinder Agreement. If the specific provisions of this Joinder Agreement conflict with the provisions of the KRUOA, the KRUA, Ballot 255, Ballot 255A, EOR Agreement, the GKA Alignment Agreements (including the GKJOA), or any other applicable agreement affecting the Subject Lands existing Page 13 of 18 ·i eì on the Effective Date of this Joinder Agreement, the provisions of this Joinder Agreement shall govern. 9.5 No Partnership. This Joinder Agreement is not intended to create, and shall not be construed to create, an association, partnership of any kind, or trust, or to impose a partnership duty, obligation, or liability with regard to anyone or more of the Parties to this Joinder Agreement. Each Party to this Joinder Agreement shall be individually responsible for its own obligatiorrs~··~.Notwithstanding the foregoing, the Parties agree to adopt or enter into as appropriate, any tax provisions the Kuparuk Owners may determine necessary to implement and give full effect to the terms of this Joinder Agreement and the intent of the Parties to this Joinder Agreement, including but not limited to special allocations as applicable. 9.6 No Third Party Beneficiaries. Nothing in this Joinder Agreement, express or implied, shall give or be construed to give any person, firm or corporation, other than the Parties and their respective successors and assigns, any legal or equitable right, remedy or claim under or in respect to this Joinder Agreement or under any covenant, conditions, or provisions contained herein; and all such covenants, conditions and provisions shall be for the sole benefit of the Parties hereto. . 9.7 Assistance of Counsel; Rule that Ambiquities are Construed Aqainst the Drafter Not to be Applied. Each Party acknowledges and agrees that it has, to its satisfaction prior to execution of this Joinder Agreement, consulted with counsel and consultants of its choice with regard to the matters addressed herein and the results of the execution and performance of this Joinder Agreement. As a result of such consultation, the Parties hereby agree that the rule of .construction that an ambiguity in an agreement shall be construed against the drafter shall not be applied or raised, asserted or argued by any Party in any action arising out of or involving this Joinder Agreement. 9.8 Assignment. ARMSTRONG shall not transfer or assign in whole or in part any of its respective rights, interest or obligations under this Joinder Agreement, except in compliance with and fulfillment of the 355024 Farmout Agreements, without prior written consent of the other Parties and any attempt to assign without such consent will be void and of no effect. Notwithstanding anything to the contrary contained herein but subject to and without affecting or amending any consent rights or preferential rights provided under any other agreement applicable to the Subject Lands, any Party may assign its rights and interests under this Joinder Agreement to any of its Affiliate(s) without obtaining the consent of the other Parties; provided the assigning Party shall remain liable for its duties, obligations and indemnities incurred under this Joinder Agreement prior to the date of such assignment and the unfulfilled liabilities and obligations undertaken by such entity pursuant to this Joinder Agreement. It is agreed that Pioneer Natural Resources Alaska, Inc. and Kerr-McGee Oil & Gas Corporation shall be deemed permitted Page 14 of 18 e( e . . assigns, subject to the preferential purchase rights of Section 19.001 of the KRUOA. Any Kuparuk Owner may assign its rights in or under this Joinder Agreement in conjunction with any other transfer or conveyance of its Working Interest in leases in the KRU or the Subject Lands as provided for in the KRUOA. 9.9 Governinq Law. This Joinder Agreement and the rights and obligations of the Parties under this Joinder Agreement as among themselves will be governed by and construed in accordance with the laws of the State of Alaska and it is further agreed that any conflict of law doctrine that may direct or refer determination of any matter to the law of any other jurisdiction shall not be utilized. Any suit among or between the Parties arising out of this Joinder Agreement shall be brought only in the Superior Court of the State of Alaska, Third Judicial District at Anchorage or in the United States District Court for the District of Alaska at Anchorage, as appropriate. 9.10 Merger; Amendments. This Joinder Agreement, including all attachments and documents incorporated by reference herein, is the entire and complete agreement among the Parties on the matters addressed herein, and any and all prior agreements and understandings, oral or written, on such matters are superseded and replaced by this Joinder Agreement. This Joinder Agreement may not be amended except in a writing executed by all Parties. 9.11 Further Assurances. The Parties agree to timely execute and deliver such further instruments and documents that are reasonably necessary to carry out the purposes and intent of this Joinder Agreement, including but not limited to recordable instruments evidencing the Operator's lien as provided pursuant to section 7.005 of the KRUOA. 9.12 Headings and Titles. The headings and titles used in this Joinder Agreement are for organizational purposes only and have no operative or substantive effect on the interpretation, application, operation, or construction of this Joinder Agreement. 9.13 No Waiver of Default. Except where specifically limited herein, the failure or delay by a Party to enforce a right or pursue a default under this Joinder Agreement shall not constitute waiver of the right or default. Waiver of a right or default shall only be effective when waived in a writing signed by the Party so waiving. 9.14 Severabilitv. If any non-material term or provision of this Joinder Agreement is found by a court of competent jurisdiction in a decision not subject to further appeal to be illegal or unenforceable, said term or provision shall be stricken and this Joinder Agreement conformed as necessary. All other terms and provisions shall remain in full force and effect for the term of this Joinder Agreement. Page 15 of 18 .. ., .( .( . .. IN WITNESS WHEREOF, the Parties have executed and entered into this Joinder Agreement on the dates shown below. ARMSTRO~G ~~KA, INC. By: z/ ~ - , Printed Name: 4 ~~z.. Title: 0(1¡::- HéL5/¡j~/fI'T Date: 0/5 ~I KUPARUK RIVER UNIT WORKING INTEREST OWNERS BP EXPLORATION (ALASKA) INC. CONOCOPHILLlPS ALASKA, INC. By: /JJjI Ji~ By: . ~ Printed Name: JJ'/?.N>A-utJ D: l\./Al/UA..Printed Name: Title: /)S.??! Jl¿¡1" - r;þ A- Title: Date: J2 fJ< ( , ...L O'ó:J ¥ Date: XTO ENERGY INC. UNION OIL COMPANY OF CALIFORNIA By: By: Printed Name: Printed Name: Title: Title: Date: Date: EXXONMOBIL ALASKA PRODUCTION INC. By: Printed Name: Title: Date: Page 16 of 18 r'.I::¿ VI-L ä:. c.tJtA tJp c:1ð .(-~ .( IN WITNESS WHEREOF, th Parties have executed and entered into this Joinder Agreement on the dates sho n below. . :;;::ALAS , printk: %.w. ~( Title: Vt;ce"f( e:AÄ~ Date: l~t {.f o~ KUPARUK RIVER UNIT WORKING INTEREST OWNERS BP EXPLORA rlON (ALASKA) INC. By: Printed Name: Titfe: . Title: Viu.. pr~ 1" 6 f44. . c:r:. - / Date: 1.1..//1/"1 Date: XTO ENERGY INC. By: gw...¡,i ~..,.., r ~. UNION Oil COMPANY OF CALIFORNIA By: Printed Name: €1>w ¡" $. ~'"" . ...~. Printed Name: Title: '$ fl. \II';:: íZ,..c.f .~/. -LA-.b Title: Date: ~~~...,é' z." , -z..o. c'¡ Date: EXXONMOBll ALASKA PRODUCTION ~NC. By: Printed Name: Title: Date: II. oj t;9 Page 16 of-+&-: TOTAL P.02 ~DEC-28-2ØØ4 11:1~ t:.'V'lUI ~ I Il..o...1 L . .( \. \. IN WrTNESS WHEREOF. th Parties have executed and entered into this Joinder Agreement on the dates sho n below. ARMSTRONG ALAS , I C. By: J:,.- __ , Title: _ V \C e, r er':>lìile.vJ'" Date: \~ 't O~ KUPARUK RIVER UNIT WORKING INTEREST O\VNERS BP EXPLORATION (ALASKA) INC. . By:._ Printed Name: Title: Title: Vlu. pr~ ~ 6. (('..A. . ex. Date; ·1¿llef/I)'f Date: XTO ENERGY INC. By: UNION OIL COMPANY OF CALIFORNIA By: Printed Name: Printed Name: Title: Title: Date: Date: EXXONMOBIL ALASKA PRODUCTION 'NC. By: ~ -4- f1--- ~~ D Fø'( ?f7. / j/ e:;tf!- .. Printed Name: Æ, c:¡~ ~:T; 0WÞ7J Title: (J( t' ~ - ?Æ~ç-,..D~'Y Date: .[)~r_~~¿C::'R- Z'~I Z-ô~4 lit, ., /jig Page 16 oHß-.: ·....... .. ..~.. ,.,....:, :;'-' .~~~...~1.263 7698........ . P. 01 ..... ~~.9;3.9:3.~~O~,,9~~ OO.~OCA~ ~AN~_ .. ' '~.~: '..~... 'Cog , . ... IN WITNESS WHEREOF·. th Parties have executed and éntered into this Joinder Agreement on the dates sho n below. . ARMSTRONG ALAS , r c. :~~; - %~ þ( Title: Vtce. f( éSlÄ~ Date: \ f-t ~ o~ KUPARUK RIVER UNIT WORKING INTEREST OWNERS BP EXPLORATION (ALASKA) INC. . By: Printed Name: Printed Name: &"rrVhC. ~ Title: Viu, p~ 't 6'44-... ex.. Date: ILlfe{ /"1 TItre: Date: XTO ENERGY INC. By: UNION 01 COMPA. NY OF CtLiFORNIA 8y: \ l/Ju. ^- ) l..-A rl,,» ~ Printed Name: ~ A. Tabler ,¡I\ttorrIey-!n··F.7.::t Printed Name: Title: Title: Date: /d / tJ/J/ a j Date: EXXONMoarL ALASKA PRODUCTION JNC. By: Printed Name:_ idle: Date: l/ø ..,~{J Page 16 of.i.8-: .--- --. Unit Boundary Tract Boundary Tract Number Subject Lands 11 Kuparuk Unit Boundary ~ BPè~~tR:~' CP~ BP CHV xo; ADL3S5030 BP'~~ CP~~~ ~ 124 BPè~~lh.OI.1,BPâ~li:~ BPÆt'~ BP, CHV XOM, 1 2 3 CPA!, UCi~~, ADL025522 ADL025512 ADL025513 125 126 BP, BP. CHV, XOM. BP, CHV, XOI.1BP. CHV. XOM, BPe CHV. ~ 501 ~ CPA!, UCl CPAI. UCL CPA!. UCl PA!, UCL 8 <Jt~· 7 6 5 4 ADL355032 ADL025524 AOL025523 ADL025521 ADl025520 ADL025519 "Pè~..tt'~l3Póp~~M BPóp~ÍJ~,BPóp~ÍJ~M BPè~~~M BPâ~~~M BPiJ~ú~~Pè~li:~ BPJ..tt'~ 147 146 ADJ2s532 11 12 13 14 15 16 ADL025528 ADl.18OI06 ldi\ ADL025531 ADL025631 ADL025630 ADL025629 ADL025628 ADl.025B27 BPJ~\h.OI.1 BPóp~Ú:g[M BP Óp~iJ~~ BPC~~~J:~M BPc~'::~ú~~BPâ~li:~' BP ópc:'~M 3PC~Ú~~M !BPè~ú:g[M· ~~'.:~. 149 150 25 24 23 22 21 20 19 18 ADlO25S44 ADl.380107 ADL02554B ADL025547 ADL025632 ADL025633 ADL025634 ADL025635 ADlO2563B ADLC..5637 tot' <.>iV, i\U~mp CHV x~ a. BP CHV 154 CPA! UCl CPA! ÍJCL OJP, CHV. XOM BP, C>iV, XOM BP, CHV. XOM BP,C>iV, XOMeP. C>iV. XOM, BP, CHV, XOMo.BP, C>iV, XOMßP, C>iV. XOM FOREST· ~" CPA!. UCl CPAI. UCl CPA!. UCL CPA!, UCL CPAI, UCl CPA!, UCl CPAI. UCl CPAI. UCl CPAI, xoi.! 154A 153 152 28 29 30 31 32 33 34 35 '!rI ADL309305 AClO25552 ADlO25551 ADL025549 ADL02554B ADl.02S643 ADL025642 ADL025641 ADL025640 ADL025639 ADL025638 ADut7449 aJ~OM CHYÐf¿o.I -... BP BP.C>iV.XOM BP,CHV.XOM BP,CHV,XOM BP.lCHV.XOM"".lCHV.XOM. BP.....CHV.XOOiBP.C>iV,XOM,aP,CHV,XOM. BPUCL.:CHV._ CPAÍ, UCl' cPAÍ, u<J.: .. '-.eHV XOM CPA!. UCl CPAI, UCL CPAI, UCL liPA!, UCL liPAI, UCl lit'A!, UCl CPAI, UCL CPAI, UCl ::PA!. x__ 155 lßt! I£I CPAÌ. UCL 45 44 43 42 41 40 39 38 37 ADl389133 389132..a9CMJ5j BP, CHV. XOM CPA!, UCL BP. CHV, XOM, CPAI, UCl BPJ~~' ADL380052 ADL025568 ADL025569 ADL025644 ADL025645 ADL025646 ADL025647 ADL025648 ADL025649 ADL02~ BP, CHV, XOM BP, CHV. XOM BP, CHV, XOM BP, CHV. XOM BP. CHV. XOM, BP, CHV, XOtMIP, CHV. XOM. 3P. CHV[jXOM. BPcp. C!jVUCl· BP[;HV' CPAI, UCl CPA!, UCL CPAI. UCL CPA!. UCL CPAI. UCl CPAI. UCl CPAI. UCL CPAI, CL ~. ::PA!, L XOM 49 50 51 52 53 54 55 56 57 58 ADL025571 ADL025570 ADL025655 ADL025654 ADL025653 ADL025652 ADL025651 AOL025650 ADL02B243.ADL028244 BP,CHV,XO~ .BP,CHV.XOM BP.CHV,XOM. BP.CHV,XOM BP, CHV.XOM 3P.CHV.XOM. BP.lCHV.XOMBP, CHV,.'J.OM. 3P.CHV.XOM. BP,.,gÀfi~ CPAI, UCL CPAI, UCl CPA!, UCL CPA!, UCL CPA!. UCL CPAI, UCL "PAl, UCl CPAI, "liL CPA!. UCl Aðûi2á248 69. 68 67 66 65 64 63 62 61 60 r ADL025565 ADL0255B6 ADL025587 ADL025656 ADL025657 ADL025658 ADL025659 ADL025660 ADL025661 BP ÓPc:'~~ .BP óp~ÍJ~M BP â'::~ú:g[M' BPâ~~~OM BPc~'::~li:~ 3Pc~'::~li:~· BP ÓPc:'ÍJ~ 3PÓPC:'Ú~~' ::pff.úgr'xot. ð't'.6J~ 74 75 76 77 78 79 80 81 82 160 ADL025590 ADL025589 ADlO25568 ADl.025667 ADL025666 ADL025665 ADL025664 ADL025663 ADL025662 AOL385175 BP ...fHV. xor. ¡¡p. CHV, XOI.1 BP. CHV, XOM, BP, CHV, XO,) 'PAlBP, U' CCLHV. x' ~ _pA!B.PUCL.' CHV,;"":'BPæ' CHVAI, U' XCLOM. BPc~Àf, ú~â~ JfM BP. CHV, XOI.1 ",AI, UCL CPA!, UCL CPAI, UCL CPAI, UCL . ~ ~-, CP~¡X:L 90 89 88 87 ADl.3SOO51 ADL025603 ADl.025604 ADL025605 ADlO25666 BP, CHV. XOM BP. CHV. XOM BP. CHV,.~. .BP, CHV. xoJ CPA!, UCL CPA!. UCl CPA!, UliL CPAI, UCl 134 95 96 ADl38OO53 ADL02560B ADL025607 85 84 ADL025670 ADL025671 163 162 ADL3B0058 161 ADL385172 ADL380062 BP. C>iV. XOM, CPA!, UCl ADL375075 136 AD1375074 l> N C 0 2Yz 5 10 MILES ß:= UCl, XOM ADL373112 BPù2t~A!, y ConocoPhillips Alaska, Inc. BP, CHV, CPA!. UCl, XOM Exhibit A to ADL355024 Special Joinder Agreement to the Kuparuk River Unit Operating Agreement and other Agreements 144 AD13B9056 145 ADL3B9059 11-1-04 04110102FOO ·; . EXHIBIT "H" to ADL 355024 Special Joinder Agreement to the Kuparuk River Unit Operating Agreement and Other Agreements LEASE LEAS LEGAL DESCRIPTION WORKING INTEREST NUMBE E OWNERSHIP UPON Fa R DATE Portions 6/1/83 Insofar and only insofar as said ExxonMobil Alaska of ADL lease covers lands outside the Production, Inc. 0.364800% 355024 Participating Area for the Kuparuk River Unit: XTO Energy, Inc. 0.108600% T 14 N, R 8 E, UMIAT MER Armstrong Alaska, Inc. Sec 24: Protracted, All (640); (from UCL): Sec 25: Protracted, All (640); 4.950600% Sec 36: Protracted, All (640); T 14 N, R 9 E, UMIAT MER Armstrong Alaska, Inc. Sec 19: Protracted, All (617); (from BP): Sec 30: Protracted, All (620); 39.282233% Sec 31: Protracted, All (623); Armstrong Alaska, Inc. containing approximately 3,780 (from CPAI): acres more or less, 55.293767% Subtotal of Subject to base royalty, Net Profit Armstrong Alaska, Inc. Share, and all burdens of record. interest: 99.526600% Reserving to Farmors their respective interests in and to the Remainder of ADL 355024, to wit: T13N, R09E, UMIAT MERIDIAN, ALASKA, Sec. 5: Excluding USS 4275; Sec. 6, All; Sec. 7: Excluding USS 4275; Sec. 8: Tide and submerged lands. The three separate 355024 Farmout Aareements between farmors: ConocoPhillips Alaska, Inc., BP Exploration (Alaska) Inc., and Union Oil Company of California and Farmee Amstrong Alaska, Inc. are attached hereto and made part of this Exhibit "H" ~ Exhibit IIH" to ADL 355024 Special Joinder Agreement ., . \ . Part of Exhibit "H" ... to ADL·355024 Special Joinder Ag....ment to the Kuparuk River Unft Operltlng Agreemenl and other Agreement. 355024 FARMOUT AGREEMENT BP Exploration (Alaska) Inc. THIS 355024 FARMOUT AGREEMENT (this "Agreement") is made by and among BP Exploration (Alaska) Inc. ("BP" or "Farmor"), and Armstrong Alaska, Inc. ("ARMSTRONG" or "Farmee"), each of which is sometimes referred to herein as "Party" or collectively, "Parties." This Agreement is made effective as of November 1,2004 ("Effective Date"). RECIT ALS A. WHEREAS, Farmor owns an undivided interest in a certain oil and gas lease shown on the attached Exhibit "A," more particularly described on the attached Exhibit B ("ADL 355024 "), which are both herein incorporated by reference; B. WHEREAS, Farmee, in exchange for an assignment of interest in that part of ADL 35024 indicated on Exhibit B attached hereto as the "Subject Lands" ("Subject Lands"), desires to drill and test an exploratory well in order to evaluate the potential for commercial production on Subject Lands. NOW 1HEREFORE, for and in consideration of the mutual covenants and promises given below, the Parties hereby mutually agree as follows: AGREEMENT 1. GrantIRatification of Agreements. 1.1 Within 30 days of execution of the ADL 355024 Special Joinder Agreement referred to in Section 1.2 below by all parties thereto, Fannor shall assign 100 percent of its right, title and interest in and to the Subject Lands to Fannee, subject to: .____...___0_____ ._..__ _ ..-----. -- - --~-- -- ------ ---- .. _._..--------~-----~._.~- ...- ..-..-------- ---_.~---- a. all burdens of record and burdens noted on Exhibit "B" hereto and b. the Fannee's duty to re-assign contained in Section 5 of this AgreemeJ Page 1 of 14 355024 Farmout Agreement I.ÄD vi ,. . ( . c. AU agreements among the Kuparuk River Unit Working Interest Owners that apply to or affect the Subject Land; and reserving to Fannor: d, a 6.0 percent overriding royalty reserved to Farmor (hereinafter "Farmor's Override") on production from the Subject Lands as provided in Section 3 below. The assignment and the reassignment, if any, shall be made on State of Alaska assignment forms and shall be made free and clear of all lease burdens arising by, through or under the assigning party, excepting those: a) of record as of the Effective Date of this Agreement; b) noted within this Agreement; or c) noted on Exhibit B. 1.2 Upon receipt of the assignments described in Section 1.1 above, Fannee shall ratify and agree to be bound by the Kuparuk River Unit Agreement as amended ("KRUA"), and the Kuparuk River Unit Operating Agreement, as amended ("KRUOA"), subject to all tenns and conditions of that certain ADL 355024 KRU Special Joinder Agreement by and between Fannee and KRU Working Interest Owners ("Special Joinder Agreement"). The KRUA and the KRUDA are on file with the Alaska Department of Natural Resources ("DNR") and are incorporated herein by reference. 2. Drilling Commitment. 2.1 Farmee shall drill one well with a bottomhole location on, in, or within the lands comprising the Subject Lands at least 500' from the boundary thereof (hereinafter the "Well") to a depth of 9000 feet TVD or to a depth sufficient to evaluate the Ivishak Fonnation ("Contract Depth"). For purposes of this Agreement, the top of the Ivishak Fonnation is defined as the stratigraphic equivalent of 7,992 feet measured depth as shown on the gamma ray/resistivity log from the Thetis Island 1 well within Sec. 19 T.14 N., R. 8E., U.M., Alaska. . ... .-----...--~.-..----F~nnee_shflH_-eemmenœ--~et1tfll·driUil1g~f:the=WeU--on-or-before·-June-t;-200S~fœr-- Farmee shall diligently pursue drilling of the Well in a safe and workmanlike manner and shall . complete drilling the Well to Contract Depth no later than December 31, 2006. If impenetrable conditions or mechanical difficulties render impracticable the continued drilling of the Well to Page 2 of 14 355024 Farmout Agreement ~ . Contract Depth, Fannee shall promptly so notify Fannor. In such event, Fannee shall drill a substitute well to Contract Depth with a bottomhole location on, in or within the lands comprising the Subject Lands ("Substitute Well"). The Substitute Well shall be commenced no later than one year after the date that impenetrable conditions or mechanical difficulties prevented the continued drilling of the Well. Thereafter drilling operations on the Substitute Well shall be diligently pursued by Fannee in a safe and workmanlike manner. The Substitute Well shall be completed· to Contract Depth no later than December 31, 2007. Upon failure of Fannee to commence actual drilling and complete the Well, or as applicable, the Substitute Well, within the time prescribed in this Section 2, Farme.e shall immediately and without further notice, offer the Subject Lands for reassignment to Farmor consistent with the tenns and conditions of Section 5 below. The Well, and if necessary, the Substitute Well, shall be drilled without cost, risk or expense of BP. Fannee shall obtain all necessary federal, state, and local pennits and shall be responsible for cqmpliance with all applicable statutes, regulations, and ordinances, and all pennit requirements and stipulations at its sole cost, risk and expense. 2.3 The Well shall be drilled as a Tract Operation under Article 16 of the KRUOA. Farinee shall be the designated Tract Representative for the Well and shall drill the Well, and, ifinFannee's sole and absolute opinion it is prudent, shall test, evaluate, and conduct pilot production operations .. as provided for in Sections 16.003, 16.004, and 16.005 of the KRUOA. 3. Oveniding Royalty. An overriding royalty totaling six percent of 8/8ths (6.00%) ("Farmor's Ovenide") of all oil,gas and associated substances produced, saved and marketed and attributable to the Subject Lands, shall be retained by BP, proportionately reduced to the working interest to be assigned to Farmee hereunder, calculated as follows: --.--.-,---".---- .-,-...- 6.00% X 100% X 39.282233%working interest of BP in the Subject Lands - - -------------~- --- -- - ------ = -i3569o/;overriding-r~y~ity-~~tt~--BP==-----------u_________ BP shall take the Fannor's Ovenide created by this Agreement in kind, free and clear of all lease costs, and costs of drilling, and development, production, marketing, processing, and operating Page 3 of 14 355024 Farmout Agreement " . I . expense and base royalty at the custody transfer point where sales quality erode oil, gas, and associated substances first enter a common carrier or contract carriage pipeline. Without limitation of the forgoing, it is expressly agreed that Parmee shall bear the entire cost of processing and backout on Parmor's Override oil processed at KRU facilities or other facilities. The Parmor's Override retained pursuant to this Agreement shall be payable without regard to project payout. Such Fannor's Override shall not be paid or accrued on oil, gas or other hydrocarbons unavoidably lost, or used for operations, development or production purposes including without limitation, repressuring or recycling operations or pressure maintenance, unless such uses of oil, gas or associated substances incur payment of base royalty and constitute a taxable event for purposes of production tax, in which case the Farmor's Override shall be paid to BP for such oil, gas and associated substances so used. Farmor shall have the right to audit Farmee's production records as to the Subject Lands for two years from the date of the production in question. 4. Other Obligations of Farmee. 4.1 Rentals and Royalties. The Parties acknowledge that CP AI is the notification lessee as to ADL 355024 and as such pays the advance minimum royalty obligation to the State of Alaska on behalf of itself and other co-owners. Upon assignment of the Subject Lands to Farmee, and to the extent the Subject Lands remain subject to this Agreement, Farmee shall reimburse CP AI on behalf of BP as a co-owner, on a net acreage basis for the advance minimum royalty obligation CP AI paid on BP's behalf. fu addition, Fannee shall pay and perform on its own behalf, and be solely liable for, all work commitments, bid deferment payments, financial obligations, and/or other penalties of whatever nature imposed by DNR as to the Subject Lands (hereinafter "Additional Lease Obligations") as a condition of approving the assignment of the Subject Lands to Farmee or which are contained in any DNR approved Plan of Development or Plan of Operation as to the Subject Lands . 4.2 Change in Unit Status of Subject Lands. fu the event that Farmee elects to develop the Subject Lands, and (a) Farmee determines that the most appropriate means of development of the ~~.,,-_____~ubject-I~ndl::~fter-t~0-W-eU--is--dril1ed--is--under-tlnit=operatiom:=gepar-ate=fr-om=the-K:RtJ;-·-or{b}--ttæ== KRU Unit Operator declines to develop or operate the Subject Lands after the Well is drilled, then Fannee, as Well Operator, will prepare an application for contraction of the Subject Lands from the KRU, and shall prepare an application for fonnation of the new unit, or as applicable, expansion of Page 4 of 14 355024 Farmout Agreement " . \ . another existing unit In such event Fannee shall diligently prosecute same with DNR through final approval without cost or expense to BP. 4.3 Royalty & Net Profit Modification. The Parties acknowledge that the Subject Lands contain net profit share lease provisions payable to the State of Alaska. If Fannee commences discussions with DNR to explore possible modifications to the existing lease obligations payable to the State of Alaska, Farmee shall keep Fannor timely infonned of all negotiations and developments associated with that effort, and Farmor will support such activities to the extent commercially practicable and prudent, as deemed so by Farmor in its sole discretion. It is acknowledged by the Parties that the net profit share development account on file with DNR as to ADL 355024, KRU Tract 123, (hereinafter "ADL 355024 Development Account") is, as of December 31, 2000, the sum $20,081,646 It is further acknowledged that the ADL 355024 Development Account is subject to review, audit, and adjustment for the time period after January 1, 2001 (hereinafter "Revised ADL 355024 Development Accountlt). It is further acknowledged that the Subject Lands comprise only-a portion of the lease ADL 355024, and that ~p and its co-lessees shall retain their respective interests in and to that portion' of ADL 355024 which lies outside of the Subject Lands (hereinafter "Retained Portion of ADL 355024 It). For the Subject Lands, it is agreed that the net profit share development account of Fannee shall be $0.00 as of the Effective Date and that no part of the Revised ADL 355024 Development Account shall be allocated, attributed or pertain to the Subject Lands. It is further agreed that any monies spent on the Subject Lands shall be allocated, attributed and pertain solely to the Subject Lands. Upon assignment of the Subject Lands to Fannee as provided for in this Agreement, the entire balance of the Revised ADL 355024 Development Account and any further additions thereto by the Working Interest Owners of the Retained Portion of ADL 355024 shall be allocated, attributed and pertain solely to the Retained Portion of ADL 355024. 4.4 Fonnation of Participating Area. Farmee shall cause all or part of the Subject Lands to be included within a DNR approved Participating Area (either within the KRU or within another DNR approved unit) no later than December 31,2009. . ........__....._.__mm._ ....... _._.n. ........-....o:=-- -- -------- ----- - -- - -------- - - ---- -- --~-_.- ~ - -- - ---------------.------.----.--. Page 5 of 14 355024 Fannout Agreement . . 4.5 Plan of Development. No later than December 31, 2009, all or part of the Subject Lands shall be held and operated under a DNR approved unit or lease Plan of Development or Plan of Exploration. 5. Term and Termination. 5.1 This Agreement shall be effective on the Effective Date and continue in effect until December 31, 2009, unless tenninated sooner as provided herein. Title that has fully vested prior to that date (including but not limited to Pannor's Override and interests in the Subject Lands not subject to reassignment on December 31, 2009, pursuant to Section 5.3 below) and the provisions of Section 10.3 shall survive tenIÚnation or expiration of this Agreement. 5.2 This Agreement shall tenIÚnate and the Parties shall have no further obligations under this Agreement if: a. The waiver of preferential rights to purchase by all necessary parties under the Section 19.101 of the KRUOA has not been obtained on or before December 31, 2004; or b. The waiver of maintenance of unifonn interest provisions of Section 17.2 of the Greater Kuparok Area Joint Operating Agreement by all necessary parties has not been obtained on or before December 31,2004; or c. The Special Joinder Agreement is not executed by Farmee and all of the KRU Working Interest Owners on or before December 31, 2004. 5.3 This Agreement shall tenninate and Farmee shall immediately tender re-assignment to BP of the Subject Lands as provided in Section 7 below upon the occurrence of any of the following: (a): if Farmee shall have failed to commence actual drilling operations and complete the Well as either a producer or a dry hole, or as applicable the Substitute Well, within the time periods required under Paragraph 2 above; (b) if Farmee shall have failed to include all or any part of the Subject Lands within a _________ºBR_ª.Pproy~~m1i.,Çipªting-A.rewJ2ecembeí3J,-2009-;-------- - -.------- ------- - --- (c) if Farmee shall have failed to include all or part of the Subject Lands under a DNR approved unit or lease Plan of Development, or as applicable a DNR Approved Plan of Exploration, by December 31, 2009; Page 6 of 14 355024 Farmout Agreement " . . (d) if the assignment of the Subject Lands is approved by DNR under a condition that the Subject Lands or any part of the Subject Lands be segregated from the Retained Portion of ADL 355024; (e) if DNR shall, as a condition of approval of the assignment of the Subject Lands to Fannee, impose any Additional Lease Obligations, as defined in Section 4.1, above, that BP deems to be unreasonable. 6. Development Provisions. . 6.1 Special Joinder Agreement Application. The Subject Lands are presently within the KRU, and Fannee has executed the Special Joinder Agreement of even·date herewith. Upon execution by all of the Kuparuk River Unit W orleing Interest Owners on or before December 31 ~ 2004, the terms of the Special Ioinder Agreement shall control as to any part of the Subject Lands developed within the KRU. 6.2. KRU Service & Infrastructure Access. The Parties acknowledge that the Subject Lands are presently within the KRU. If development of the Subject Lands occurs outside the KRU, then the Parties acknowledge that KRU services andlor infrastructure access, including but riot limited to, access to KRU oil and gas processing and transportation facilities (hereinafter all collectively referred to as "KRU Facilities Access") may be riecessary or desirable to effectively andlor to economically develop the Subject Lands. In such case, the Parties acknowledge that significant legal and commercial issues andlor obstacles may exist with respect to any possible agreement on KRU Facilities Access. Such issues and obstacles may include, without limitation, the tenns of access should access be pennitted, and Co-owner and State of Alaska approval thereof as necessary. 6.3 No Access Granted Herein. The Parties acknowledge that the Subject Lands are presently within the KRU. If development of the Subject Lands occurs outside the KRU, then BP is willing to negotiate with Fannee in good faith concerning KRU Facilities Access tenns. However, it is _ ______~~J'!~~!~_~~~_~¥_!!!.~_u~!i!!i_e~_ th~t_~º___ª~m<mt-with-res.~Llo-- KRll-Facilities-Åccess-is---- ""'-- expressed or implied under this Agreement. Fannee acknowledges and agrees that any such agreement will be subject to KRU co-owner approval, and may require the approval or other action by the State. of Alaska, which approvals and actions are outside the control of BP. Furthennore, Page 7 of 14 355024 Farmout Agreement .' . \, . Fannee agrees to bear the entire and sole risk that no agreement respecting KRU Facilities Access may ever be entered into; and in such event, neither Farmor nor Farmee shall have any claim for damages against either Fannee or Farmor, respectively, resulting from the failure to develop the Subject Lands. Additionally, Farmee agrees to bear the entire and sole risk that the tenns of KRU Facilities Access may render the development of the Subject Lands non-economic, or may significantly challenge or impair the economic development of the Subject Lands; and in such event, no Party shall have any claim for damages against any other Party, resulting from its failure to develop the Subject Lands. If the development of the Subject Lands occurs outside the KRU, then Farmee shall have the right to gather, treat, process, transport, market and sell Farmee's production from the Subject Lands in accordance with such tenns and conditions as are acceptable in Farmee's sole and absolute discretion. 7. Re-assignment. 7.1 In any event requiring re-assignment pursuant to Section 5.3, Farmee shall offer to, and if accepted in writing by Farmor, Farmee shall re-assign within, 30 days of acceptance, to Fannor, free and clear of all lease burdens created by Farmee, all of the interest in the Subject Lands that restores 100% of Fannor's prior interest in and to Subject Lands. Fannor may elect not to receive a reassignment of interest in the Subject Lands as provided for under this subparagraph, and in such case, the Subject Lands will continue to be subject to the tenns and conditions of this Agreement, and Farmor shall retain Farmor's OvelTide elsewhere described and provided for in this Agreement. 7.2 The re-assignment obligations described in this Section shall attach and pertain to the Subject Lands in whole or in part as applicable, and to any new, replacement, subsequent or segregated lease or portion of a lease that is created or issued as a result of the'driIling of the Well or an expansion or creation of a Participating Area. All re-assignments shall be made on State of Alaska assignment fonns and shall be made free and clear of all lease burdens created by through or ,~"..=..._.__~.~~~~_¥~~~-ª~~Þ:J~I1!!!º.ª~~ºº_ªÞMIJ~¥.Pgmºr'SnSQle. and..exclusiye..remedy-hereunder, pr~¥ided~.....n. Fannee shall remain solely responsible for any Additional Lease Obligations, as defined in Section 4.1, above. Page 8 of 14 355024 Farmout Agreement . . 8. Lease Segregation. Fannee shall use all commercially reasonable means to prevent any portion of Subject Lands from being segregated from the base lease ADL 355024 by the DNR as part of the assignment approval decision and any other DNR decision applying to or affecting the Subject Lands during the term of this Agreement. This provision does not apply if, after drilling the Well, it is determined that the Subject Lands will be operated by Farmee under a unit other than the KRU. 9. Well Data. During the term of this Agreement, Fannee shall provide to BP aU well and geologic data from the Well or as applicable the Substitute Well; and Farmee shall further provide all well and geologic data from all wells drilled within the Subject Lands from the Effective Date through December 31, 2009 (hereinafter collectively all "Well Data"). Fannee shall provide the Well Data to BP free of cost. The Parties understand and agree that BP may use the Well Data for its own purposes subject to the terms and provision of this Section 9. The Well Data shall include all well data, including without limitation, splits of all cuttings and cores, real time access to electronic reports of all drilling data acquired during the drilling operations, copies of all MWD or LWD logs. mudlogs, wireline logs, and all other logs created by Fannee for its own use, and any thin sections and point count data that are produced by Fannee. BP shall keep the Well Data confidential and shall be bound by the terms under wþich the Well Data was acquired. In case of electronic access to drilling data, Fannee shall provide the Well Data in real time. Farmee shall provide BP with all other Well Data promptly after the time the Well Data is acquired by Fannee and in any event, no later than ten days after the Well Data is produced in usable format by Fannee. The obligation to provide the Well Data from operations conducted within the Subject Lands touches and concerns the land and creates and constitutes a covenant running with the lands, and it is agreed that any assignment by Fannee of the Subject Lands shall be subject to the requirement that the assignee agrees in writing to be bound by the provisions of tWs Agreement to provide the Data to BP as provided for in this Section 9. Nothing in this provision shall be construed to obligate Fannee to perform more tests on the Well than Armstrong in its sole opinion deems appropriate. _____ .._n__.._.._.._·.K'·_.._···· -......--................~.=-~~~~._. ,._.......,-_.-_._--.-~~-..:<::::==.=~~...;;;:..:..:;:;;::::.~._---_.._-- .-.'----"-"-" .:::....::...--- ..:;.-------~-- .-...-..--.-...-..-.------- 10. Liability/Indemnification. Page 9 of 14 355024 Farmout Agreement " . . 10.1 BP and Fannee shall be responsible only for their respective obligations as herein set out. It is not the intention of the Parties to create a partnership between BP, and Farmee, and this Agreement shall not be construed so as to render BP liable as partner, associate, or joint venturer of Fannee, nor as creating a mining or other partnership or association between BP and Farmee. This Agreement is not intended to create and shall not be argued, asserted or interpreted to create any partnership or business association between Farmee and Fannor or to impose a partnership duty, obligation or liability with regard to anyone or more of the Parties to this Agreement. Each Party to this Agreement shall be individually responsible for its own obligations. 10.2 Notwithstanding the foregoing, if one or more wells are drilled, the Parties agree to adopt or enter into a tax partnership, unless both the Fannor and Fannee agree not to enter into such a tax partnership. To the extent a tax partnership is formed, for tax purposes BP shall be deemed to contribute the Subject Lands to the partnership and Armstrong's cash paid to drill the welles) shall be considered a contribution to the partnership. 10.3 Farmee shall protect, defend, indemnify, and hold BP, its affiliates, and its officers, directors, agents, representatives, and employees, and their respective successors and assigns ("Indemnified Persons")~ hannless from and against all claims, losses, judgments, demands, damages, costs, expenses, and causes of action, including any civil fines, penalties, costs of clean-up or plugging liabilities for any and all operations and activities conducted on the Subject Lands by Fannee or its employees, representatives, contractors, or agents from and after the Effective Date of this Agreement (collectively hereinafter "Claims"), excluding only Claims arising solely from the gross negligence or willful misconduct of Farmor's Senior Supervisory Personnel (meaning the person in charge of Farmor's Anchorage, Alaska office)" It is expressly agreed that the teon "Claims" as used herein shall include without limitation any claim made or cause of action asserted on account of any personal injury or death, damage, destruction, loss of property, or contamination of natural resources (including soil, surface water or ground water) to the extent that the claims, losses, judgments, demands, damages, costs, expenses or causes of action result from or arise out of .~~"=.!:~~·.~.~~_t~..~~ .~~~!lc_t~_~f_-!1~~'~_~!!1PIºY~§!..J.:~p~s~IJ,tatiY~s,- cºntrªctQr..s..,... Qr ..agents,~~heth~~=.:.= acting jointly with others or separately, or the omission or failure to act of Fannee, its employees, contractors, representatives, or agents. Without limitation, the duty of Farmee to protect, defend, indemnify and hold harmless Indemnified Persons under this Agreement shall apply to all Claims Page 10 of 14 355024 Farmout Agreement . . brought by any person, including (without limitation) Fannee's employees, agents, or representatives, and also including (without limitation) any private citizens, persons organizations. and any agency, branch or representative of federal, state or local government. The duties and obligations of this Section 10 shall survive tennination or expiration, in whole or in part, of this Agreement. 11. Force Majeure. All obligations, except the obligation to pay money when due, of each Party shall be suspended while, but only so long as, a Party is prevented from complying herewith, in whole or in part, by strikes, lockouts or other labor or industrial disturbances, whether or not affecting employees of a Party and without any obligation by a Party to adjust or settle any labor dispute, governmental action or action taken at the request of any governmental authority, acts of God, unusually severe climatic conditions beyond those normally present in the arctic, war, insurrection, rebellion, invasion, uncontrollable delays in transportation, inadequate facilities for the transportation of materials, unforeseen and unexpected inability to obtain materials from established or generally recognized sources of supply, inability to obtain any necessary pennits or licenses from governmental or administrative agencies on reasonably acceptable terms, or other matters beyond the reasonable control of such Party, whether similar to the matters herein specifically enumerated or not. If the obligations of any Party are suspended as set forth in the preceding paragraph, such Party shall give notice of suspension as soon as reasonably possible to the other Parties, stating the date and extent of such suspension, whether it is in whole or in part, and the nature of the cause thereof. Any Party whose obligations have been suspended in whole or in part as aforesaid shall resume the performance of the suspended portion of its obligations as soon as reasonably possible after the removal of the cause thereof and shall thereafter immediately notify the other Parties of such removal. 12. "Most Favored Nations" PrQyision.... In.theeYentthaLP~I11!!~~L~!1.1ersint{)sulagreementwlthfHiY""" . c"_ "..__.__ .~~. "._.-._~,...... "'_'."'_'_' - .-.-.-----.--- --------- other KRU Working Interest Owner pertaining to fannout of the Subject Lands that is in any way more favorable to such other KRU Working Interest Owner than this Agreement is to BP, including, without limitation an agreement containing an overriding royalty interest greater than the Fannor's Page 11 of 14 355024 Farmout Agreement . . Override under this Agreement, then within 30 days after execution of such other fannout agreement, Farmee shall offer those terms to BP in writing, and upon acceptance by BP within 30 days from receipt of the notice of more favorable terms, this Agreement shall be reformed to reflect such tenns.. 13. Matters of General Application. 13.1 Notices. All notices or communications allowed or required pursuant to this Agreement ("Notice(s)") shall be in writing, and shall be delivered in person or sent by United States Mail (certified, return receipt requested), facsimile (where a successful transmission report is received and retained), or Federal Express or other U.S. publicly traded overnight delivery service that provides a reliable written record of delivery, properly addressed to the Party to whom given, with all postage and charges prepaid. Notices shall be addressed to the Parties as follows: if to BP: BP Exploration Alaska, Inc. 900 E Benson Blvd. Anchorage, Alaska 99419-6612 Attention: Land Manager Telephone: (907)564-5567 Facsimile: (907) 564-4440 if to Fannee: Annstrong Alaska, Inc. 700 17th Street, Suite 1400 Denver, Colorado 80202 Attention: Vice President -- Land Telephone: (303)623-1821 Facsimile: (303) 623-3019 Any Notice given shall be effective upon delivery within normal business hours, or if delivered outside of normal business hours, upon the next business day. Each Party shall have the right to ...'-.. -'-~=c'--'Chatlg&cits--4ldd~r-=the::titIe:-ef::tfle'~ff=tö-=Whóftï~suCh:::NõtiCè'-shóUld·b6 diiededby ·gìVírigt~'-' days' advance Notice as provided herein to the other Party. Page 12 of 14 355024 Farmout Agreement . . 13.2 No Finder's Fees. Each Party represents and warrants that no person, including without limitation, any director, employee, or agent of any Party, will give or receive any commission, fee, rebate, gift, or entertainment of significant cost or value in connection with this Agreement. 13.3 Media Releases. Fannee shall not make any press release or public statement concerning entering into this Agreement, Well Data or well test or results in or on the Subject Lands or matters addressed herein without the prior written approval of BP. 13.4 Assignment. Farmee shall not assign, sell, trade, transfer, or Qtherwise convey any of its rights, obligations, or interest in or to this Agreement or the Subject Lands, or both to any other party without the prior written consent of BP, which shall not be unreasonably withheld. BP may assign its interest in this Agreement upon notice thereof given to Farmee. 13.5. Integration. This Agreement, including the attached Exhibits and agreements referenced herein, constitutes the entire agreement between the Parties regarding the subject matter hereof, and supercedes all prior negotiations, discussions, written or verbal, concerning same. In case of any direct conflict between this Agreement and the Special Joinder Agreement, the latter shall control. This Agreement shall not be modified except in a writing executed by the Parties. 13.6. Governing LawNenue. This Agreement shall be governed by the laws of the State of Alaska, except that any doctrine of conflict of laws that may direct or apply the law of any other jurisdiction shall be disregarded and not asserted or argued by any Party. Venue for any action brought hereunder shall only lie in the Superior Court for the State of Alaska, Third Judicial District at Anchorage or the United States District Court for the District of Alaska at Anchorage, Alaska, as appropriate. 13.7. No Waiver. The failure of any Party at any time to require perfonnance of a provision of this Agreement shall not constitute a waiver of the same or any other provision of this ~,_~==:.=.:::::bgL~m~ºt'.n~~t_sh.aIL notljmi.t.--ª.!!yJ:>arty' s· rightJ.º;._the.f.elÚte.f:.:Jmff)~ the ·same:...:()r:~any.:;-other.::~:.:: provision of this Agreement. Page 13 of 14 355024 Farmout Agreement . '. . . 13.8. Interpretation. The headings used in this Agreement are for convenience only and will be disregarded in interpreting this Agreement. Each Party hereto has had the opportunity to its satisfaction to consult with attorneys and other advisors of its choice in connection with negotiation, execution, performance, and results of this Agreement, and, as a consequence, the rule calling for an agreement to be strictly construed against the drafter shall not apply. 13.9. Successors And Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. 13.10 Further Assurances. The Parties shall execute such further instruments and documents necessary to give full force and effect to the all terms of this Agreement. 13.11. Counterpart Execution. This Agreement may be executed in identical counterparts, all of which taken together shall form one and the same Agreement. IN WITNESS WHEREOF, the Parties have set their hand hereto effective as of the first date above written: Armstrong Alaska, Inc. By: Printed Name: Title: BP Exploration (Alaska) Inc. By: .JJ/j Jl i, <i2 ~ Printed Name: ~ C:>/V 'J?(J J /J'/JV/·j-¿1h {D? Title: A<;<y,+ JhtJI Y¡ - &.-.k:A . ... ,,' ..~,,~...._... .___. h_._...._ _._.._. ," .._ ... _ .. ._._._..._------_..~_....-._..,-_.- ...--..-..._-..--...-' - ... ., - . ...- ~:_-----,----.--_._-_.._-_..,....__. ..--.-----,. --_..---.-'--.- .-.---.-----.-. .'.- ..-... -- ,-..-. . ,. - --_.,._.---.~-_._,,---_.,._-- .._ _. .."". ._.H . .- ..-"- ..'. . "---'- -... .__._._.._-...-..,._--.--_.~.~-----------_._~..---_._--,.---.-'- Page 14 of 14 355024 Farmout Agreement DeC 15 04 02:23p I . . p.2 13.8. Interpretation. The headings used in this Agreement are for convelúence only and will be disregarded in interpreting this Agreement. Each Party hereto has had the opportunity to its satisfaction to conslùt with attorneys and other advisors of its choice in connection with negotiat~on, execution, performance, and results of this Agreement, and, as ~ consequence, the role calling for an agreement to be strictly construed against the drafter shall not apply. 13.9. Successors And Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. 13.10 Further Assurances. The Parties shall execute such further instruments and documents necessary to give ftIll force and effect to the all terms of this Agreement. 13.11. çounterpart Execution. This Agreement may be execu~ed in identical counterparts, all of which taken together shall form one and the same Agreement. IN WITNESS WHEREOF, the Parties have set their hand hereto effective as of the fITst date above written: BC// ~ Printed Name Eel ;fê./'~ Title: Vr:,:- ~, 6Ð~ BP Exploration (Alaska) Inc. :.:,::::.: By. /lJ/ lih (2}£1 ~ ~tedNam~~Uf: JL'H~2L> r:~?:.. TItle: (/ç.s¿ f ~ /". '-ÞA .. ... ." .. . . . j. Page 14 of 14 355024 Farmout Agreement 3P, CHV, CPAI, UCl, ~ø¥ p ------ ~ 119 ~O 21 . I I 1=_ . BP. CHV. a 06-30-93 CPAI, ~O ~).~~ I ~ ADl365501 _.~- <1§> BP, CHV, I ~ XOM BP, CHV, JAI. UCL. XOM BP. ¢.; ~~AI, UCL. XOM sp. cm. CP~, UCL. XOM ... ~ '-'.:::::......:1-......:._'-':: :-,-,::::c;.:ec;:,-,.::-..........§",... ...=- .-.''''-':"4''''- -- -.-....:..:...:;-:..--.-.. i 1-31-03 . 03-27-84 -.......- .___________ c; ... ... I. ~ _0, ....\0. .- -- ¥', iIiiI ._~---- -----œ=-"27'.::ß4-.-------- '--~ '.'L KUD8 ~rtiCiP:l1¡~~-=-"" ~"~'" . ...¿- ... . '7 "trl ~ 10 11 '-..:.~ ~ ADL380100 AW~@ ADL025531........- 24 19 .. r¡ r:. ..._o...i .30 29 28 05--31-93 36 31 32 33 @- .3 2 16 I .-.-.--------...--..~-.--_.-..-_..-....t-.-.--.......-..---...IJI 3'5.1iO?4 06-30-93 ¡ ¡ L- -. 10 I 11 .12 c~ fIA' ST." 1 @ BP.CHV.CPtI.UC~XO G"!" - .. ... - '-... - -I.... - - D';ilS 14· 1 .~ 22 - art:..k 3_ 4 P, CHV. CPA!, UCL. '4fM BP. CHV, CPA!, U~L. ~OM BP. CHV. 26 ¿ :$ 30 .., ...···..\d.9 L... ............... I>S~-:....~¡ ,-&,.y¡<-~ " 01~ " ....,...... <II.. øø. fD "'''... \ ~ ~~ ar\ U 1i81-: .32 .~. - \,l '- "Mt~521 i \. ADl025520 ~ I . BP,c:I-IV,þt~"JK:L.~o~J BP, cm,cf~,q~~~ I.. 131>!~ Conoo ~ ¡lIips Alaska, Inc, Exhibit alAn to 35 4 Farmout Agreement 10-14-04 04000201000 ~ a.. XOM 1.3 BP, CHV, fìSI. UCL. >COM 18;;:::~ BP, CHV, C )AI, UCl. XO" BP. CHV. CPA, UCL. xoM... B 16 ..15 14 13"'" <v'V '. __. ð. , .. LEASE NUMBER Portions of ADL 355024 LEASE DATE 6/1/83 . \ EXHIBIT "B" to 355024 Farmout Agreement SUBJECT LANDS LEGAL DESCRIPTION Insofar and only Insofar as said lease covers lands outside the PartIcIpating Area for the Kuparuk River Unit T 14 N. R 8 E. UMIAT MER See 24: Protracted, All (640); See 25: Protracted, All (640); See 36: Protracted, All (640); T 14 N. R 9 E. UMIAT MER See 19: Protracted, All (617); See 30: Protracted, All (620); See 31: Protracted, All (623); . WORKING INTEREST OWNERSHIP ExxonMobil Alaska Production, Inc. 0.3648% XTO Energy Inc. 0.1086% Union Oil Company of California 4.9506% BP Exploration (Alaska) Inc. containing approximately 3,780 acres more or less, 39.282233% Note, the Subject Lands are ConocoPhillips Alaska, burdened by the proportionate Inc. share of base royalty to State of Alaska, net profit share to State of 55.293767% Alaska, and all other burdens of record as of the Effective Date of this Agreement. Reserving to Farmor its interest in and to the Remainder of ADL 355024, to wit: T13N, R09E, UMIAT MERIDIAN, ALASKA. Sec. 5: Excluding USS 4275; Sec. 6, All; Sec. 7: Excluding USS 4275; Sec. 8: Tide and submerged lands. Exhibit HB" to 355024 Farmout Agreement '. . . Part of Exhibit "H" 355024 FARMOUT AGREEMENT to ADL·355024 Speclll Joinder Agreement to the Kuparuk River Unit Op....lng Agreement and other Agreements ConocoPhflllps Alaska, Inc. THIS 355024 FARMOUT AGREEMENT (this "Agreement") is made by and among ConocoPhiIlips Alaska Inc. ("CP AI" or "Farmor"), and Annstrong Alaska, Inc. ("ARMSTRONG" or "Farmee"), each of which is sometimes referred to herein as "Party" or collectively, "Parties," This Agreement is made effective as of September I, 2004 ("Effective Date"). RECITALS A. WHEREAS, Farmor owns an undivided interest in a certain oil and gas lease shown on the attached Exhibit "A," more particularly described on the attached Exhibit B ("ADL 355024"), which are both herein incorporated by reference; B. WHEREAS, Farmee, in exchange for an assignment of interest in that part of ADL 35024 indicated on Exhibit B attached hereto as the "Subject Lands" ("Subject Lands"), desires to drill and test an exploratory well in order to evaluate the potential for commercial production on Subject Lands. NOW THEREFORE, for and in consideration of the mutual covenants and promises given below, the Parties hereby mutually agree as follows: AGREEMENT 1. GrantlRatification of Agreements. 1.1 Within 30 days of execution of the ADL 355024 Special Joinder Agreement referred to in Section 1.2 below by all parties thereto, Farmor shall assign 100 percent of its right, title and interest in and to the Subject Lands to Farmee, subject to: ------------- a. all burdens of record and burdens noted on Exhibit "B" hereto and b; the Farmee's duty to re-assign contained in Section 5 of this AgreemeI Page 1 of 14 355024 Farmout Agreement 11 vI-; I . ~ {·AmJìIJì r r~ ~ . . c. All agreements among the Kuparuk River Unit Working Interest Owners that apply to or affect the Subject Land; and reserving to Farmor: d. a 6.0 percent overriding royalty reserved to Farmor (hereinafter ItFarmor's Override It) on production from the Subject Lands as provided in Section 3 below. The assignment and the reassignment, if any, shall be made on State of Alaska assignment foms and shall be made free and clear of all lease burdens arising by, through or under the assigt,ring party, excepting those: a) of record as of the Effective Date of this Agreement; b) noted within. this Agreement; or c) noted on Exhibit B. 1.2 Upon receipt of the assignments described in Section 1.1 above, Farmee shall ratify and agree to be bound by the Kuparuk River Unit Agreement as amended (ItKRUA"), and the Kuparuk River Unit Operating Agreement, as amended ("KRUOA"), subject to all terms and conditions of that certain ADL 355024 KRU Specialloinder Agreement by and between Farmee and KRU Working Interest Owners ("Specialloinder Agreement"). The KRUA and the KRUOA are on file with the Alaska Department of Natural Resources (ItDNR") and are incorporated herein by reference. 2. Drilling Commitment. 2.1 Farmee shall drill one well with a bottomhole location on, in, or within the lands comprising the Subject Lands (hereinafter the "Well") to a depth of 9000 feet TVD or to a depth s.ufficient to evaluate the Ivishak Formation ("Contract Depth"). For purposes of this Agreement, the top of the Ivishak Formation is defined as the stratigraphic equivalent of 7,992 feet measured depth as shown on the gamma ray/resistivity log from the Thetis Island 1 well within Sec. 19 T.14 N., R. 8E., U.M., Alaska. ---2.2 Farmee shall commence actual drilling of tne Wen-ono! before luneT;-2005~-Thereafter Farmee shall diligently pursue drilling of the Well in a safe and workmanlike manner and shall complete drilling the Well to Contract Depth no later than December 31, 2006. If impenetrable conditions or mechanical difficulties render .impracticable the continued drilling of the Well to Page 2 of 14 355024 Farmout Agreement ~ . ( . Contract Depth, Farmee shall promptly so notify Farmor. In such event, Farmee shall drill· a substitute well to Contract Depth with a bottomhole location on, in or within the lands comprising the Subject Lands ("Substitute Well"). The Substitute Well shall be commenced no later than one year after the date that impenetrable conditions or mechanical difficulties prevented the continued drilling of the Well. Thereafter drilling operations on the Substitute Well shall be diligently pursued by Farmee in a safe and workmanlike manner. The Substitute Well shall be completed to Contract Depth no later than December 31, 2007. Upon failure of Farmee to commence actual drilling and complete the Well, or as applicable, the Substitute Well, within the time prescribed in this Section 2, Farmee shall immediately and without further notice, offer the Subject Lands for reassignment to Farmor consistent with the tenns and conditions of Section 5 below. The Well, and if necessary, the Substitute Well, shall be drilled without cost, risk or expense of CPA!. Fannee shall obtain all necessary federal, state, and local permits and shall be responsible for compliance with all applicable statutes, regulations, and ordinances, and all permit requirements and stipulations at its sole cost, risk and expense. 2.3 The Well shall be drilled as a Tract Operation under Article 16 of the KRUOA. Fannee shall be the designated Tract Representative for the Well and. shall drill the Well, and, if in Fannee's sole and absolute opinion it is prudent, shall test, evaluate, and conduct pilot production operations as provided for in Sections 16.003, 16.004, and 16.005 of the KRUOA. 3. Oveniding Royalty. An oveniding royalty totaling six percent of 8/8ths (6.00%) ("Farmor's Override") of all oil, gas and associated substances produced, saved and marketed and attributable to the Subject Lands, shall be retained by CP AI, proportionately reduced to the working interest to be assigned to Fannee hereunder, calculated as follows: 6.00% X 100% X 55.293767%working interest of CPAI in the Subject Lands ____.u___· ----------------------------------- = 3.31"6260%overriding royalty net to CPAI ._-----_._---_..._-~ CPA! shall take the Farmor's Override created by this Agreement in kind, free and clear of all lease costs, and costs of drilling, and development, production, marketing, processing, and operating Page 3 of 14 355024 Farmout Agreement . . expense and base royalty at the custody transfer point where sales quality crude oil, gas, aJld associated substances first enter a common carrier or contract carriage pipeline. Without limitation of the forgoing, it is expressly agreed that Farmee shall bear the entire cost of processing aJld backout on Farmor's Override oil processed at KRU facilities or other facilities. The Farmor's Override retained· pursuant to this Agreement shall· be payable without regard to project payout. Such Farmor's Override shall not be paid or accrued on oil, gas or other hydrocarbons unavoidably lost, or used for operations, development or production purposes including without limitation, repressuring or recycling operations or pressure maintenance, unless such uses of oil, gas or associated substances incur payment of base royalty and constitute a taxable event for purposes of production tax, in which case the Farmor's Override shall be paid to CP AI for such oil, gas and associated substances so used. Farmor shall have the right to audit Farmee's production records as to the Subject Lands for two years from the date of the production in question. 4. Other Obligations of Farmee. 4.1 Rentals and Royalties. The Parties acknowledge that CP AI is the notification lessee as to ADL 355024 and as such pays the advance minimum royalty obligation to the State of Alaska on behalf of itself and other co-owners. Upon assignment of the Subject Lands to Fannee, and to the extent the Subject Lands remain subject to this Agreement, Fannee shall reimburse CP AI on a net acreage basis for the advance minimum royalty obligation CPAI paid on Fannee's behalf. In addition, Farmee shall pay and perfonn on its own behalf, and be solely liable for, all work commitments, bid defennent payments, fmancial obligations, and/or other penalties of whatever nature imposed by DNR as to the Subject Lands (hereinafter "Additional Lease Obligations") as a condition of approving the assignment of the Subject Lands to Farmee or which are contained in any DNR approved Plan of Development or Plan of Operation as to the Subject Lands. . 4.2 Chan~e in Unit Status of Subject Lands. In the event that Fannee elects to develop the Subject Lands, and (a) Farmee determines that the most appropriate means of development of the Subject Lands after the Well is drilled is under unit operations separate from the KRU, or (b) the ----n.u Unit Operator declines to develop or operate the Subject LanëlSãfter .the WeIrís-dRlled, then Farmee, as Well Operator, will prepare an application for contraction of the Subject Lands from the KRU, and shall prepare an application for fonnation of the new unit, or as applicable, expansion of Page 4 of 14 355024 Farmout Agreement '. . \. . another existing unit In such event Fannee shall diligently prosecute same with DNR through final approval without cost or expense to CP AI. 4.3 Royalty & Net Profit Modification. The Parties acknowledge that the Subject Lands contain net profit share lease provisions payable to the State of Alaska. If Farmee commences discussions with DNR to explore possible modifications to the existing lease obligations payable to the State of Alaska, Farmee shall keep Farmor timely infonned of all negotiations and developments associated with that effort, and Fannor will support such activities to the extent commercially practicable and prudent, as deemed so by Fannor in its sole discretion. It is acknowledged by the Parties that the net profit share development account on file with DNR as to ADL 355024, KRU Tract 123, (hereinafter "ADL 355024 Development Account") is, as of December 31, 2000, the sum $20,081,646 It is further acknowledged that the ADL 355024 Development Account is subject to review, audit, and adjustment for the time period after January 1,2001 (hereinafter "Revised ADL 355024 Development Account"). It is further acknowledged that the Subject Lands comprise only a portion of the lease ADL 355024, and that CP AI and its co-lessees shall retain their respective interests in and to that portion of ADL 355024 which lies outside of the Subject Lands (hereinafter "Retained Portion of ADL 355024"). For the Subject Lands, it is agreed that the net profit share development account of Farmee shall be $0.00 as of the Effective Date and that no part of the . . Revised 355024 Development Account shall be allocated, or attributed or pertain to the Subject Lands. It is further agreed that any monies spent by Farmee on the Subject Lands shall be allocated, and attributed and pertain solely to the Subject Lands. Upon assignment of the Subject Lands to Farmee as provided for in this Agreement, the entire balance of the Revised ADL 355024 Development Account and any further additions thereto by the Working Interest Owners of the Retained Portion of ADL 355024 shall be allocated and attributed and pertain solely to the Retained Portion of ADL 355024. 4.4 Fonnation of Participating Area. Farmee shall cause all or part of the Subject Lands to be included within a DNR approved Participating Area (either within the KRU or within another DNR approved unit) no later than December 31, 2009. ---.......-.-..--. ---.---.---.-.-, ......-..--...-.-.--.--.,-. ---.-------.-...-. ..-.-.-----..--.----.-.,,-.....--.------...--.-------- Page 5 of 14 355024 Farmout Agreement ; . . 4.5 Plan of Development. No later than December 31,2009, all or part of the Subject Lands shall be held and operated under a DNR approved unit or lease Plan of Development or Plan of Exploration. 5. Term and Tennination. , 5.1 This Agreement shall be effective on the Effective Date and continue in effect until December 31, 2009, unless tenninated sooner as provided herein. Title that has fully vested prior to that date (including but not limited to Parmor's Override and interests in the Subject Lands not subject to reassignment on December 31,2009, pursuant to Section 53 below) and the provisions of Section 10.3 shall survive tennination or expiration of this Agreement. 5.2 This Agreement shall tenninate and the Parties shall have no further obligations under this Agreement if: a. The waiver of preferential rights to purchase by all necessary parties under the Section 19.101 of the KRUOA has not been obtained on or before December 31, 2004; or b. The waiver of maintenance of unifonn interest provisions of Section 17.2 of the Greater Kuparuk Area Joint Operating Agreement by all necessary parties has not been obtained on or before December 31,2004; or c. The Special Joinder Agreement is not executed by Fannee and all of the KRU Working Interest Owners on or before December 31, 2004. 5.3 This Agreement shall terminate and Fannee shall immediately tender re-assignment to CP AI of the Subject Lands as provided in Section 7 below upon the occurrence of any of the following: (a): if Fannee shall have failed to commence actual drilling operations and complete the Well as either a producer or a dry hole, or as applicable the Substitute Well, within the time periods required under Paragraph 2 above; ~-----~_._-~--.(h}------Î-f-Ðarmee-shall---ha-¥e-f-ai-led-t-()-inGluQtHÙ1-{)f--æ1Y-part-of-t-he--Subjec-t--:banàs-~wit-hin-a--- DNR approved Participating Area by December 31,2009; Page 6 of 14 355024 Farmout Agreement . . (c) if Farmee shan have failed to include all or part of the Subject Lands under a DNR approved unit or lease Plan of Development, or as applicable a DNR Approved Plan of Exploration, by December 31,2009; (d) if the assignment of the Subject Lands is approved by DNR under a condition that the Subject Lands or any part of the Subject Lands be segregated from the Retained Portion of ADL 355024; or (e) if DNR shall, as a condition of approval of the assignment of the Subject Lands to Farmee, impose any Additional Lease Obligations, as defined in Section 4.1, above, that CPAI deems to be unreasonable. 6. Development Provisions. 6.1 Special Joinder Agreement Application. The Subject Lands arepresentIy within the KRU, and Farmee has executed the Special Joinder Agreement of even date herewith. Upon execution by all of the Kuparuk River Unit Working Interest Owners on or before December 31,2004, the terms of the Special Joinder Agreement shall control as to any part of the Subject Lands developed within theKRD. 6.2. KRU Service & Infrastructure Access. The Parties acknowledge that the Subject Lands are presently within the KRU. If development of the Subject Lands occurs outside the KRU, then the Parties acknowledge that KRU services and/or infrastructure access, including but not limited to, access to KRU oil and gas processing and transportation facilities (hereinafter all collectively referred to as "KRU Facilities Access") may be necessary or desirable to effectively and/or to economically develop the Subject Lands. In such case, the Parties acknowledge that significant legal and commercial issues and/or obstacles may exist with respect to any possible agreement on KRU Facilities Access. Such issues and obstacles may include, without limitation, the terms of access should access be permitted, and co-owner and State of Alaska approval thereof as necessary. .. .._u_.6.ì___.._.~o Accessßr~nteò Herein._ ..TheP...arties-.acknowledge.. thatthe.SubjecLLands.æ-e.pr.esently-- within the KRU. If development of the Subject Lands occurs outside the KRU, then CPAI is willing to negotiate with Fannee in good faith concerning KRU Facilities Access terms. However, , it is expressly agreed by the Parties that no agreement with respect to KRU Facilities Access is Page 7 of 14 355024 Farmout Agreement . . expressed or implied under this Agreement. Farmee acknowledges and agrees that any such agreement will be subject to KRU co-owner approval, and may require the approval or other action by the State of Alaska, which approvals and actions are outside the control of CP AI. Furthermore, Farmee agrees to bear the entire and sole risk that no agreement respecting KRU Facilities Access may ever be entered into; and in such event, neither Farmor nor Farmee shall have any claim for damages against either Fannee or Farmor, respectively, resulting from the failure to develop the Subject Lands. Additionally, Fannee agrees to bear the entire and sole risk that the terms of KRU Facilities Access may render the development of the Subject Lands non-economic, or may significantly challenge or impair the economic development of the Subject Lands; and in such event, no Party shall have any claim for damages against any other Party, resulting from its failure to develop the Subject Lands. If the development of the Subject Lands occurs outside the KRU, then Farmee shall have the right to gather, treat, process, transport, market and sell Fannee's production from the Subject Lands in accordance with such terms and conditions as are acceptable in Farmee's sole and absolute discretion. 7. Re-assignment. 7.1 In any event requiring re-assignment pursuant to Section 5.3, Fannee shall offer to, and if accepted in writing by Farmor, Farmee shall re-assign to Farmor, free and clear of all lease burdens created by Farmee, all of the interest in the Subject Lands that restores 100% of Fannor's prior interest in and to Subject Lands. Farmor may elect not to receive a reassignment of interest in the Subject Lands as provided for under this subparagraph, and in such case, the Subject Lands will continue to be subject to the terms and conditions of this Agreement, and Fannor shall retain Parmor's Ovenide elsewhere described and provided for in this Agreement. "'--"-- 7.2 The re-assignment obligations described in this Section shall attach and pertain to the Subject Lands in whole or in part as applicable, and to any new, replacement, subsequent or segregated lease or portion of a lease that is created or issued as a result of the drilling of the Well ..____ºr.~~~gr~!ltion-.hy .D..NR,~O.ntraC.tiOlLof.1he-_KRII,_or.an.-expansion..-or-cr.eation--Of-a--FartiGipating--- Area. All re-assignments shall be made on State of Alaska assignment forms and shall be made free· and clear of all lease burdens created by through or under Farmee. Such termination shall be Page 8 of 14 355024 Farmout Agreement " . \ . Farmor's sole and exclusive remedy hereunder,. provided, Farmee shall remain solely responsible for any Additional Lease Obligations, as defined in Section 4.1, above. 8. Lease Segregation. Fannee shall use all commercially reasonable means to prevent any portion of Subject Lands from being segregated from the base lease ADL 355024 by the DNR as part of the assignment approval decision and any other DNR decision applying to or affecting the Subject Lands during the term of this Agreement. This provision does not apply if, after drilling the Well, it is detennined that the Subject Lands will be operated by Farmee under a unit other than the KRU. 9. Well Data. During the term of this Agreement, Farmee shall provide to CPAI all well and geologic data from the Well or as applicable the Substitute Well; and Farmee shall further provide all well and geologic data from all wells drilled within the Subject Lands from the Effective Date through December 31,2009 (hereinafter collectively all "Well Data"). Fannee shall provide the Well Data to CPAI free of cost. The Parties understand and agree that CPAI may use the Well Data "for its own purposes subject to the terms and provision of this Section 9. The Well Data-shall include all well data, including without limitation, splits of all cuttings and cores, real time access to electronic reports, of all drilling data acquired during the drilling operations, copies of all MWD or LWD logs, mudlogs, wireline logs, and all other logs created by Fannee for its own use, and any thin sections and point count data that are produced by Fannee. CP AI shall keep the Well Data confidential and shall be bound by the terms under which the Well Data was acquired. In case of electronic access to drilling data, Fannee shall provide the Well Data in real time. Farmee shall ' provide CPAI with all other Well Data promptly after the time the Well Data is acquired by Farmee and in any event, no later than ten days after the Well Data is produced in usable format by Farmee. The obligation to provide the Well Data from operations conducted within the Subject Lands touches and concerns the land and creates and constitutes a covenant running with the lands, and it is agreed that any assignment by Farmee of the Subject Lands shall be subject to the requirement that the assignee agrees in writing to be bound by the provisions of this Agreement to provide the . .._._____..........__-Data__to...CPAI_as_.pr.ovided.ior__in.-this_Sec-tion...9-.-------N.ot.lúng--in-this-.provision--sl1a1l-bg.·eenstmed-te----- obligate Armstrong to perform more tests on the Well than Armstrong in its sole opinion deems appropriate. -. Page 9 of 14 355024 Farmout Agreement . \ . 10. LiabilitylIndemnification. 10.1 CP AI and Fannee sha11 be responsible only for their respective obligations as herein set out. It is not the intention of the Parties to create a partnership between CP AI, and Fannee, and this Agreement shall not be construed so as to render CP AI liable as partner, associate, or joint venturer of Fannee, nor as creating a mining or other partnership or association between CP AI and Fannee. This Agreement is not intended to create and shall not be argued, asserted or interpreted to create any partnership or business association between Farmee and Farmor or to impose a partnership duty, obligation or liability with regard to anyone or more of the Parties to this Agreement. Each Party to this Agreement shall be individually responsible for its own obligations. 10.2 Notwithstanding the foregoing, if one or more wells are drilled, the Parties agree to adopt or enter into a tax partnership. unless both the Farmor and Farmee agree not to enter into such a tax. partnership. To the extent a tax partnership is fonned, for tax purposes CP AI shall be deemed to contribute the Subject Lands to the partnership and Annstrong's cash paid to drill the welles) shall be considered a contribution to the partnership. 10.3 Fannee shall protect, defend, indemnify, and hold CPAI, its affiliates, and its officers, directors, agents, representatives, and employees, and their respective successors and assigns ("Indemnified Persons"), harmless from and against all claims, losses, judgments, demands, damages, costs, expenses, and causes of action, including any civil fines, penalties, costs of clean-up or plugging liabilities for any and all operations and activities conducted on the Subject Lands by Farmee or its employees, representatives, contractors, or agents from and after the Effective Date of this Agreement (collectively hereinafter "Claims"), excluding only Claims arising solely from the gross negligence or willful misconduct of Fannor. It is expressly agreed that the term "Claims" as used herein shall include without limitation any claim made or cause of action asserted on account of any personal injury or death, damage, destruction, loss of property, or contamination of natural resources (including soil, surface water or ground water) to the extent that .......____... th.e.~1!Ú.m~Jºs.s~judgme.n1s.,-demands..damages...costs,expenses-orcauses..ofaction-result-from-Or---·.··· arise out of Farmee's acts or the acts of Farmee's employees, representatives, contractors, or agents, whether acting jointly with others or separately, or the omission or failure to act of Farmee, its employees, contractors, representatives, or agents. Without limitation, the duty of Fannee to Page 100f 14 355024 Farmout Agreement . \ . protect, defend, indemnify and hold hannless Indemnified Persons under this Agreement shall apply to all Claims brought by any person, including (without limitation) Fannee's employees, agents, or representatives, and also including (without limitation) any private citizens, persons organizations, and any agency, branch or representative of federal, state or local government. The duties and obligations of this Section 10 shall survive tennination or expiration, in whole or in part, of this Agreement. 11. Force Majeure. All obligations, except the obligation to pay money when due, of each Party shall be suspended while, but only so long as, a Party is prevented from complying herewith, in whole or in part, by strikes, lockouts or other labor or industrial disturbances, whether or not affecting employees of a Party and without any obligation by a Party to adjust or settle any labor dispute, governmental action or action taken at the request of any governmental authority, acts of God, severe climatic conditions, accident, war, insurrection, rebellion, invasion, uncontrollable delays in transportation, inadequate facilities for the transportation of materials, unfo~eseen and unexpected inability to obtain materials from established or generally recognized sources of supply, inability to obtain any necessary permits or licenses from governmental or administrative agencies on reasonably acceptable tenns, or other matters beyond the reasonable control of such Party, whether similar to the matters herein specifically enumerated or not. If the obligations of any Party are suspended as set forth in the preceding paragraph, such Party shall give notice of suspension as soon as reasonably possible to the other Parties, stating the date and extent of such suspension, whether it is in whole or in part, and the nature of the cause thereof. Any Party whose obligations have been suspended in whole or in part as aforesaid shall resume the performance of the suspended portion of its obligations as soon as reasonably possible after the removal of the cause thereof and shall thereafter immediately notify the other Parties of such removal. .-..__._-..--- . ___12L"MostF-1iYQJ'edJllation~'--Er.oyision.-... -In-the.e¥enuhat---Farmu-enters- into-an--agreement-withany------- other KRU Working Interest Owner pertaining to farmout of the Subject Lands that is in any way more favorable to such other KRU Working Interest Owner than this Agreement is to CP AI,eincluding, without limitation an agreement containing an overriding royalty interest greater than the 'Page 11 of 14 355024 Farmout Agreement . . Parmor's Ovenide under this Agreement, then within 30 days after execution of such other farmout agreement, Farmee shall offer those terms to CP AI in writing, and upon acceptance by CP AI within 30 days from receipt of the notice of more favorable terms, this Agreement shall be reformed to reflect such terms.. 13. Matters of General Application. 13.1 Notices. AU notices or communications allowed or required pursuant to this Agreement ("Notice(s)") shall be in writing, and shall be delivered in person or sent by United States Mail (certified, return receipt requested), facsimile (where a successful transmission report is received and retained), or Federal Express or other U.S. publicly traded overnight delivery service that provides a reliable written record of delivery, properly addressed to the Party to whom given, with all postage and charges prepaid. Notices shall be addressed to the Parties as follows: if to CP AI: ConocoPhillips Alaska, Inc. 700 G Street, ATO 1470 P.O. Box 100360 Anchorage, AK 99510-0360 Attention: Land Manager Telephone: 907-263-4933 Facsimile: 907-263-4966 if to Fannee: Armstrong Alaska, Inc. 700 17th Street, Suite 1400 Denver, Colorado 80202 Attention: Vice President -- Land Telephone: (303) 623-1821 Facsimile: (303) 623-3019 Any Notice given shall be effective upon delivery within normal business hours, or if delivered ____. O~!ª!c!~_-ºfJ1QnnJJl_b1Jsiness_hQurs,....upon-the-next-business-day....Each--P-art.y:shall-·havetheright-to----·- change its address or the title of the person to whom such Notice should be directed by giving ten days' advance Notice as provided herein to the other Party. Page 12 of 14 355024 Farmout Agreement . . 13.2 No Finder's Fees. Each Party represents and warrants that no person, including without limitation, any director, employee, or agent of any Party, will give or receive any commission, fee, rebate, gift, or entertainment of significant cost or value in connection with this Agreement. 13.3 Media Releases. Farmee shall not make any press release or public statement concerning entering into this Agreement, Wen Data or weB test or results in or on the Subject Lands or matters addressed herein without the prior written approval of CP AI. 13.4 Assignment. Farmee shall not assign any of its rights, obligations, or interest in or to this Agreement to any other party without the prior written consent of CP AI, which shall not be ) unreasonably withheld. CP AI may assign its interest in this Agreement upon notice thereof given to Farmee. 13.5. InteIU'ation. This Agreement, including the attached Exhibits and agreements referenced herein, constitutes the entire agreement between the Parties regarding the subject matter hereof, and supercedes all prior negotiations, discussions, written or verbal, concerning same. In case of any direct conflict between this Agreement and the Special Joinder Agreement, the latter shall control. This Agreement shall not be modified except in a writing executed by the Parties. 13.6. Governing LawN enue. This Agreement shall be governed by the laws of the State of Alaska, except that any doctrine of conflict of laws that may direct or apply the law of any other jurisdiction shall be disregarded and not asserted or argued by any Party. Venue for any action brought hereunder shall only lie in the Superior Court for the State of Alaska, Third Judicial District at Anchorage or the United States District Court for the District of Alaska at Anchorage, Alaska, as appropriate. 13.7. No Waiver. The failure of any Party at any time to require performance of a provision of this Agreement shall not constitute a waiver of the same or any other provision of this ... ..,_____. ___.A.gre.ement._.an.Ji....s.haILnotJimit..any.Party.'s-right. -to-.-thereafter.enf.orcç··th~ ··same-·er-any-øther·--- provision of this Agreement. Page 13 of 14 355024 Farmout Agreement D"êC 07 04 11:24a . . P.16/1B p.2 DEC-B7-2004 08146 13.8. Intcwretation, The headings used in this Agreement are for convenience only and wi1l be disregarded in interpreting this Agreement. Bach Party hereto has had the opportunity to its satisfaction to consult with attorneys and olber advisors of its çhoioc in connection with nesotiation. execution, per(onnance, and results of this Agreement, and, as a consequence, the rule calling for an agreement to be strictly construed against the drafter shall not apply. 13.9. Successors And As~i,n~. This Agreement sball be binding upon and inure to the benðfit oCthe Panies and their Itspective successors and assigns. 13.10 further Assurances. The .Parties shaH execute sucli Cunher instruments anà documents necessary to give full force and effect to the all teoos of this Agreement. 13.11. çounterpart Execution. This Agreement may be executed in identica.l counterparts, all of which taken together shall fonn one and the same Agreement. IN WrrNESS WHEREOF, the Parties have set their hand hereto effeceive as of the first d~te above written: Armstrong Alaska.lne. By:CÄ Title: %:ie: Conoc:oPhUl1ps Alaska, Inc. ...£ ;}r¡3 Title: ,h'IAt7R1·(. ~-_._-~-_.__._,._--~- .--...__._~~-_.__._--_.._._-.-.._--_.__.._..,..- _·__,~u.._".._. m._.. _ .'·_____u__...,_-...._.. Page 14 of 14 355024 Farmout Agreement @ r 31AD~ . -, f'> CL. XOM BP, CHV, CPAf, UCL, XOM BP, ¢HV. CPIIJ, UCL, XOM -- ---4- ---6--- - -5-m --- f-- - ----5 I 1-31-03 I 00-27-84 24 19 25 30 29 28 05-31-93 36 31 32 33 O~k ~~~,-~rwt, xo~ 4 .3 ~~; \ 05-8@ 10 11 ~2 U :' ff,. 10 CWMSON ...., su, I ,/ ADŒ7 01...-·· . ~_. D 023 ~ SP, CHV, CPA!. U/~ XOM BP:·CHV, CP-\I, U~j(~M .8 ,¿HV, CPA ·'''·lJ.~L, xÒ) . ,¿;¡.<b0¡(s- -- - -14 - - - -·1 18 .....\W.. cfl15 ~L3i5030 _ ./ i «- i - ~. 03 27 01-29-91 i 20 1)1 {O$IO 3P, CHV, Cp,ój, UCl, x~ r-v.: ¡ ... ~\ Á '" \....::V: Á ",.;:¡. ... ------ ""', . ~ " ~t fl9 '20 21 22 19 ~ 20 21 22 I I ADl025512! ADL02~ 13 .... II .~a: DS-S.C ~ i ~ SP, CHV, CPA!, UCl, XOM .3 2 @-~ 6 I ~.r)J ~fifi0?4 06-30-93 I BP, CHV, I CPA! I 06-30-93 ~~:Xb.M 130 ~ 1 ~ · ~ I ADl365501 5. ... _ ¥ . . SP, CHV, C P, CHV, CPAI, UCL, 'f/M SP, CHV, CPA!, U~l, 10M SP, CHV, AI. UCl, xo~ 26 ~ ~ 3))...··· ........\'Jig r ¡ 28 27 . .. DS~ 03=2~ i:....~ ........... 01=29=01 \(7~.1 r 01 ~ ~..' .... #16 \ ~", ~ 7. .\U~ \. .. ~eJZ;, \ltd521 32 Ì'\ Ä5L025520 ~ nBP~, c"', ';XOM BP, CHV#~':'Ucl' XOM I BP, CHV, '~)Cl, XOM L BP, CIjI' _ noc6Phillips Alaska, Inc. Exhibit UAU to 35 4 Farmout Agreement 10-14-04 04060201000 03=Z/;:::ß4 11~ ADl025531 '...... .... ¡:.; .... IiiOI IIiIf¡j ¡¡¡¡;; __ = ¡¡¡;;.. ~ ¡.¡¡,. '= ¡a;.; ø .. +2- ...... Kuftar ~iCipati~"ë-ä-=-7o ~II ADUII0106 AW;\¡5¡¡3~ CL. XOM 13 BP, CHV. ~, UCL. XOM . SP, CHV, CPAI. UCL, xo~· sp, CHV. CPA, UCL, XOM\ ß 18 ;:::J--_.1] 16 ij 14 13 ..... '\ _ _ . <¡co .. , LEASE NUMBER Portions of ADL 355024 ....-.---.--.....---.. .. ".~ ~-_. .,_._..._~- LEASE . DATE 6/1/83 . EXHIBIT uB" to 355024 Farmout Agreement SUBJECT LANDS LEGAL DESCRIPTION Insofar and only Insofar as said lease covers lands outside the Participating Area for the Kuparuk River Unit T 14 N. R 8 E. UMIAT MER See 24: Protracted, AU (640); See 25: Protracted, AU (640); See 36: Protracted, AU (640); T 14 N. R 9 E. UMIAT MER See 19: Protracted, AU (617); See 30: Protracted, AU (620); See 31: Protracted, All (623); . WORKING INTEREST OWNE~SHIP ExxonMobil Alaska Production, Inc. 0.3648% XTO Energy Inc. 0.1086% Union Oil Company of Califomia 4.9506% BP Exploration (Alaska) Inc. containing approximately 3,780 acres more or less, 39.282233% Note, the Subject Lands are ConocoPhillips Alaska, burdened by the proportionate Inc. share of base royalty to State of Alaska, net profit share to State of 55.293767% Alaska, and all other burdens of record as of the Effective Date of this Agreement. Reserving to Farmor its interest in and to the Remainder of ADL 355024, to wit: T13N, R09E, UMIAT MERIDIAN, ALASKA, Sec. 5: Excluding USS 4275; Sec. 6, All; Sec. 7: Excluding USS 4275; Sec. 8: Tide and submerged lands. Exhibit "BII to 355024 Farmout Agreement De'é} 2004 11:1?a . . p.2 Part of IxhiM "H" ('I. 355024 FARMOUT AGREEMENT to ADL.355fJ24 &peel. Joinder Agreement to the Kuparuk River unit Openttn, Agreement and other A.e.ments Union 011 CØß1)any o( Callfømla ~ THIS 355024 FARMOUT AGREEMENT (this "Agreement") is made by and among Union Oil Company of California ("UNOCAU or "Farmor"), and Annstrong Alaska, Inc. ("ARMSTRONG" or "Farmee"), each of which is sometimes referred to herein as "Party" or collectively, "Parties." This Agreement is made effective as of September I, 2004 ("Effective Date"). RECITALS A. WHEREAS, Farmor owns an undivided interest in a certain oil and gas lease shown on the attached Exhibit "A," more particularly described on the attached Exhibit <'B" ("ADL 355024"), which are both herein incorporated by reference; B. WHEREAS, Farmee, in exchange for an a.c:signment of interest in that part of ADL 355024 indicated on Exhibit B attached hereto as the "Subject Lands" ("Subject Lands"), desires to drill and test an exploratory well in order to evaluate the potential for commercial production on Subject Lands. NOW THEREFORE, for and in consideration of the mutual covenants and promises given below, the Parties hereby mutually agree as follows: AGREEMENT 1. Grant/Ratification of Agreements. 1.1 Within 30 days of execution of the ADL 355024 Special Joinder Agreement referred to in Section 1.2 below by all parties thereto, Fannor shall assign 100 percent of its right, title and interest in and to the Subject Lands to Fannce subject to: a. all burdens of record and burdens no·ted on Exhibit "B" hereto and b. the Fannee's duty to re-assign contained in Section 5 of this Agrcemenl Page 1 of 14 355024 Farmout Agreement WLo~.cuL De'c 20 04 11:1?a , . . p.3 . c. All agreements among the Kuparuk River Unit Working Interest Owners that apply to or affect the Subject Land; and reserving to Farmor: d. a 6.0 percent overriding royalty reserved to Farmor (hereinafter "Fannor's Ovenide") on productio!1 from the Subject Lands as provided in Section 3 below. The assignment and the reassignment, if any, shall be made on State of Alaska assignment forms and shall be made free and clear of all lease burdens arising by, through or under the assignìng party, excepting those: a) of record as of the Effective Date of this Agreement; b) noted within this Agreement; or c) noted on Exhibit B. 1.2 Upon receipt of the assignments described in Section 1.1 above, Fannee shall ratify and agree to be bound by the Kuparuk River Unit Agreement as amended ("KRUA"), and the Kuparuk River Unit Operating Agreement, as amended ("KRUOA"), subject to all tenus and conditions of that certain ADL 355024 KRU Special Joinder Agreement by and between Fannee and KRU Working Interest Owners ("Special Joinder Agreement"). The KRUA and the KRUOA are on file with the Alaska Department of Natural Resources ("DNR") and are incorporated herein by reference. 2. Drilling Commitment. 2.1 Farmee shall drill one well with a bottomhole location on, in, or within the lands comprising the Subject Lands (hereinafter the "Well") to a depth of 9000 feet TVD or to a depth sufficient to evaluate the Ivishak Formation ("Contract Depth"). For purposes of this Agreement, the top of the, Ivishak Formation is defined as the stratigraphic equivalent of 7,992 feet measured depth as shown on the gamma ray/resistivity log from the Thetis Island 1 well within Sec. 19 T.14 N., R. 8E.~ V.M., Alaska. 2.2 Fannee shall commence actual drilling of the Well on or before June 1, 2005. Thereafter Farmee shall diligently pursue drilling of the Well in a safe and workmanlike manner and shall complete drilling the Well to Contract Depth no later than December 31, 2006. If impenetrable conditions or mechanical difficulties render impracticable the continued drilling of the Well to Page 2 of 14 355024 Farmout Agreement De'c' 20 04 11: l?a . . p.4 Contract Depth, Farmee shall promptly so notify Farmor. In such event, Farmee shall drill a substitute well to Contract Depth with a bottomhole location on, in or within the lands comprising the Subject Lands ("Substitute Welltl). The Substitute Well shall be commenced no later than one year after the date that impenetrable conditions or mechanical difficulties prevented the continued drilling of the Well. Thereafter drilling operations on the Substitute Well shall be diligently pursued by Farmee in a safe and workmanlike manner. The Substitute Well shall be completed to Contract Depth no later than December 31, 2007. Upon failure of Farmee to commence actual drilling and complete the Well, or as applicable, the Substitute Well, within the time prescribed in this Section 2, Fannee shall immediately and without further notice, offer the Subject Lands for reassignment to Fannor consistent with the terms and conditions of Section 5 below. The Well, and if necessary, the Substitute Well, shall be drilled without cost, risk or expense of UNOCAL. Farmee shall obtain all necessary federal, state, and local permits and shall be responsible for compliance with all applicable statutes, regulations, and ordinances, and all permit requirements and stipulations at its sole cost, risk and expense. 2.3 The Well shall be drilled as a Tract Operation under Article 16 of the KRUOA. Farmee shall be the designated Tract Representative for the Well and shall drill the Well, and, ifin Farmee's sole and absolute opinion it is prudent, shall test, evaluate, and conduct pilot production operations as provided for in Sections 16.003, 16.004, and 16.005 of the KRUOA. 3. Overriding Royalty. An oveniding royalty totaling six percent of 8/8ths (6.00%) ("Fannor's Override") of all oil, gas and associated substances produced, saved and marketed and attributable to the Subject Lands, shaH be retained by UNOCAL, proportionately reduced to the working interest to be assigned to Farmee hereunder, calculated as follows: 6.00% X 100% X 4.9506% working interest of UNOCAL in the Subject Lands = 0.297036% overriding royalty net to UNOCAL UNOCAL shall take the Farmor's Override created by this Agreement in kind, free and clear of all lease costs, and costs of drilling, and development, production, marketing, processing, and Page 3 of 14 355024 Farmout Agreement De'c 20 04 11:17a . . p.5 operating expense and base royalty at the custody transfer point where sales quality crude oil, gas, and associated substances first enter a common camer or contract carriage pipeline. Without limitation of the forgoing, it is expressly agreed that Fannee shall bear the entire cost of processing and backout on Fannor's Override oil processed at KRU facilities or other facilities. The Farmor's Override retained pursuant to this Agreement shall be payable without regard to project payout. Such Fannor's Override shall not be paid or accrued on oil, gas or other hydrocarbons unavoidably lost, or used for operations, development or production purPoses including without limitation, repressuring or recycling operations or pressure maintenance, unless such uses of oil, gas or associated substances incur payment of basc royalty and constitute a taxable event for purposes of production tax, in which case the Farmor's Override shall be paid to UNOCAL for such oil, gas and associated substances so used. Fannor shall have the right to audit Fannee's production records as to the Subject Lands for two years from the date of the production in question. 4. Other Obligations of Farmee. 4.1 Rentals and Royalties. The Parties acknowledge that ConocoPhillips Alaska., Inc. ("CP AI") is the notification lessee as to ADL 355024 and as such pays the advance minimum royalty obligation to the State of Alaska on behalf of itself and other co-owners. Upon assignment of the Subject Lands to Farmee, and to the extent the Subject Lands remain subject to this Agreement, Farmee shall reimburse CP AI on behalf of UNOCAL on a net acreage basis for the advance minimum royalty obligation CP AI paid on Farmee's behalf. In addition, Farmee shall pay and perform on its own behalf, and be solely liable for, all work commitments, bid deferment payments, financial obligations, and/or other penalties of whatever nature imposed by DNR as to the Subject Lands (hereinafter "Additional Lease Obligations") as a condition of approving the assignment of the Subject Lands to Fannee or which are contained in any DNR approved Plan of Development or Plan of Operation as to the Subject Lands. 4.2 Change in Unit Status of Subject Lands. In the event that Farmee elects to develop the. Subject Lands, and (a) Farmee determines that the most appropriate means of development of the Subject Lands after the Well is drilled is under unit operations separate from the KRU, or (b) the KRU Unit Operator declines to develop or operate thè Subject Lands after the Well is drilled, then Fannee, as Well Operator, will prepare an application for contraction of the Subject Lands from the KRU, and shall prepare an application for fonnation of the new unit, or as applicable, ex.pansion of Page 4 of 14 355024 Farmout Agreement Dee 20 04 11:18a . . p.6 another existing unit. In such event, Fannee shaIl diligently prosecute same with DNR through final approval without cost or expense to UNOCAL. 4.3 Royalty & Net Profit Modification. The Parties acknowledge that the Subject Lands contain net profit share lease provisions payable to the State of Alaska. If Farmee commences discussions with DNR to explore possible modifications to the existing lease obligations payable to the State of Alaska, Farmee shall keep Farmor timely infonned of all negotiations and developments associated with that effort, and Farmor will support such activities to the extent commercially practicable and prudent, as deemed so by Farmor in its sole discretion. It is acknowledged by the Parties that the net profit share development account on file with DNR as to ADL 355024, KRU Tract 123, (hereinafter "ADL 355024 Development Account") is, as of December 31, 2000, the sum $20,081,646. It is further acknowledged that the ADL 355024 Development Account is subject to review, audit, and adjustment for the time period after January 1, 2001 (hereinafter "Revised ADL 355024 Development Account"). It is further acknowledged that the Subject Lands comprise only a portion of the lease ADL 355024, and that UNOCAL and its co-lessees shall retain their respective interests in and to that portion of ADL 355024 which lies outside of the Subject Lands (hereinafter "Retained Portion of ADL 355024"). For the Subject Lands, it is agreed that the net profit share development account of Farmee shall be $0.00 as of the Effective Date and that no part of the Revised 355024 Development Account shall be allocated, or attributed or pertain to the Subject Lands. It is further agreed that any monies spent by Farmee on the Subject Lands shall be allocated, and attributed and pertain solely to the Subject Lands. Upon assignment of the Subject Lands to Farmee as provided for in this Agreement, the entire balance of the Revised ADL 355024 Development Account and any further additions thereto by the Working Interest Owners of the Retained Portion of ADL 355024 shall be allocated and attributed and pertain solely to the Retained Portion of ADL 355024. 4.4 Formation of Participating Area. Fannee shall cause all or part of the Subject Lands to be included within a DNR approved Participating Area (either within the KRU or within another DNR approved unit) no later than December 31, 2009. Page 5 of 14 355024 Farmout Agreement D,e'c 20 04 11: 18a . . p.? 4.5 Plan of Development. No later than December 31,2009, all or part of the Subject Lands shall be held and operated under a DNR approved unit or lease Plan of Development or Plan of Exploration. 5. Tenn and Termination. 5.1 This Agreement shall be effective on the Effective Date and continue in effect until December 31, 2009, unless tenninated sooner as provided herein. Title that has fully vested prior to that date (including but not limited to Farmor's Override and interests in the Subject Lands not subject to reassignment on December 31, 2009, pursuant to Section 5.3 below) and the provisions of Section 10.3 shall survive tennination or expiration of this Agreement. 5.2 This Agreement shall tenninate and the Parties shall have no further obligations under this Agreement if: a. The waiver of preferential rights to purchase by all necessary parties under the Section 19.101 of the KRUOA has not been obtained on or before December 31, 2004; or b. The waiver of maintenance of uniform interest provisions of Section 17.2 of the Greater Kuparuk: Area Joint Operating Agreement by all necessaIy parties has not been obtained on or before December 31,2004; or c. The Special Joinder Agreement is not executed by Fannee and all of the KRU Working Interest Owners on or before December 31, 2004. 5.3 This Agreement shall terminate and Fannee shall immediately tender re-assìgIU11ent to UNOCAL of the Subject Lands as provided in Section 7 below upon the occurrence of any of the foUowing: (a): if Fannee shall have failed to commence actual drilling operations and complete the Well as either a producer or a dry hole, or as applicable the Substitute Well, within the time periods required under Paragraph 2 above; (b) if Fannee shall have failed to include all or any part of the Subject Lands within a DNR approved Participating Area by December 31, 2009; Page 6 of 14 355024 Farmout Agreement Dèc 20 04 11:1Ba . . p.8 (c) if Fannee shall have failed to include all or part of the Subject Lands under a DNR approvoo unit or lease Plan of Development, or as applicable a DNR Approved Plan ofExptoration, by December 31,2009; Cd) if the assignment of the Subject Lands is approved by DNR under a condition that the Subject Lands or any part of the Subject Lands be segregated from the Retained Portion of ADL . 355024; or (e) if DNR shall, as a condition of approval of the assignment of the Subject Lands to Farmee, impose any Additional Lease Obligations, as defined in Section 4.1, above, that µNOCAL deems to be unreasonable. 6. Development Provisions. 6.1 Special Joinder AgreeTI1ent Application. The Subject Lands are presently within the KRU, and Farrnee has executed the Special Joinder Agreement of even date herewith. Upon execution by all of the Kuparuk River Unit Working Interest Owners on or before December 31,2004, the tenns of the Special Joinder Agreement shall control as to any part of the SubjectLal1ds developed within theKRU. 6.2. KRU Service & Infrastructure Access. The Parties acknowledge that the Subject Lands are presently within the KRU. If development of the Subject Lands occurs outside the KRU, then the Parties acknowledge that KRU services and/or infi-astructure access, including but not limited to, access to KRU oil and gas processing and transportation facilities (hereinafter all collectively referred to as "KRU Facilities Access") may be necessary or desirable to effectively and/or to economically develop the Subject Lands. In such case, the Parties acknowledge that significant legal and commercial issues and/or obstacles may exist with respect to any possible agreement on KRU Facilities Access. Such issues and obstacles may include, without limitation, the tenns of access should access be permitted, and co-owner and State of Alaska approval thereof as necessary. 6.3 No Access Granted Herein. The Parties acknowledge that the Subject Lands are presently within the KRu. If development of the Subject Lands occurs outside the KRU, then UNOCAL is willing to negotiate with Farmee in good faith concerning KRU Facilities Access tenns. However it is expressly agreed by the Parties that no agreement with respect to KRU Facilities Access is Page 7 of 14 355024 Farmout Agreement Dee:: 20 04 11:lBa . . p.s expressed or implied under this Agreement. Farmee acknowledges and agrees that any such agreement will be subject to KRU co-owner approval, and may require the approval or other action by the State of Alaska, which approvals and actions are outside the control of UNOCAL. Furthennore, Fannee agrees to bear the entire and sole risk that no agreement respecting KRU Facilities Access may ever be entered into; and in such event, neither Fannor nor Fannee shall have any claim for damages against either Fannee or Fannor, respectively, resulting fÌom the failure to develop the Subject Lands. Additionally, Farmee agrees to bear the entire and sole risk that the terms of KRU Facilities Access may render the development of the Subject Lands non-economic, or may significantly challenge or impair the economic development of the Subject Lands; and in such event, no Party shall have any claim for damages against any other Party, resulting trom its failure to develop the Subject Lands. If the development of the Subject Lands occurs outside the KRU, then Farmee shall have the right to gather, treat, process, transport, market and sell Farmee's production from the Subject Lands in accordance with such tenus and conditions as are acceptable in Fannee's sole and absolute discretion. 7. Re-assignrnent. 7.1 In any event requiring re-assignment pursuant to Section 5.3, Farmee shall offer to, and if accepted in writing by Farmor, Farmee shall re~assign to Fannor, free and clear of all lease burdens created by Farmee, all of the interest in the Subject Lands that restores 100% of Fannor's prior interest in and to Subject Lands. Farmor may elect not to receive a reassignment of interest in the Subject Lands as provided for under this subparagraph, and in such case, the Subject Lands will continue to be subject to the terms and conditions of this Agreement, and Farmar shall retain Farmor's Override elsewhere described and provided for in this Agreement. 7.2 . The re-assignment obligations described in this Section shall attach and pertain to the Subject Lands in whole or in part as applicable, and to any new, replacement, subsequent or segregated lease or portion of a lease that is created or issued as a result of the drilling of the Well or segregation by DNR, contraction of the KRU) or an expansion or creation of a Participating Area. All re-assignments shall be made on State of Alaska assignment fonns and shall be made free and clear of all lease burdens created by, through or under Farmee. Such termination shall be Page 8 of 14 355024 Farmout Agreement Dee;: 20 04 11:lSa . . p. 10 Farmor's sole and exclusive remedy hereunder, provided, Farmee shall remain solely responsible for any Additional Lease Obligations, as defined in Section 4.1, above. 8. Lease Segregation. Fann.ee shall use all commercially reasonable means to prevent any portion of Subject Lands tram being segregated from the base lease ADL 355024 by the DNR as part of the assignment approval decision and any other DNR decision applying to or affecting the Subject Lands during the term of this Agreement. This provision does not apply if, after drilling the Well, it is determined that the Subject Lands will be operated by Farmee under a unit other than theKRU. 9. Well Data. During the term. of this Agreement, Farmee shall provide to UNOCAL all well and geologic data from the Well or as applicable the Substitute Well; and Farmee shall further provide all well and geologic data from all wells drilled within the Subject Lands from the Effective Date through December 31, 2009 (hereinafter collectively all "Well Data"). Farmee shall provide tbe Well Data to UNOCAL free of cost. The Parties understand and agree that UNOCAL may use the Well Data for its own purposes subj ect to the terms and provision of this Section 9. The Well Data shall include all well data, including without limitation, splits of all cuttings and cores, real time access to electronic reports of all drilling data acquired during the drilling operations, copies of all MWD or LWD logs, mudlogs, wireline logs, and all other logs created by Farmee for its own use, and any thin sections and point count data that are produced by Farmee. UNOCAL shall keep the Well Data confidential and shall be bound by the terms under which the Well Data was acquired. In case of electronic access to drilling data, Farmee shall provide the Well Data in real time. Farmee shall provide UNOCAL with all other Well Data promptly after the time the Well Data is acquired by Farmee and in any event, no later than ten days after the Well Data is produced in usable format by Farmee. The obligation to provide the Well Data from operations conducted within the Subject Lands touches and concerns the land and creates and constitutes a covenant running with the lands, and it is agreed that any assignment by Farmee of the Subject Lands shall be subject to the requirement that the assignee agrees in writing to be bound by the provisions of this Agreement to provide the Data to UNOCAL as provided for in this Section 9. Nothing in this provision shall be construed to obligate Annstrong to perform more tests on the Well than Annstrong in its sole opinion deems appropriate. Page 9 of 14 355024 Farmout Agreement Dee 20 04 11:19a . . p.ll 10. Liability/Indemnification. lO.l UNOCAL and Farmee shall be responsible only for their respective obligations as herein set out. It is not the intention of the Parties to create a partnership between UNOCAL, and Fannec, and this Agreement shall not be construed so as to render UNOCAL liable as partner, associate, or joint venturer of Fannee, nor as creating a mining or other partnership or association between UNOCAL and Farmee. This Agreement is not intended to create and shall not be argued, asserted or interpreted to create any partnership or business association between Farmee and Fannor or to impose a partnership duty, obligation or liability with regard to anyone or more of the Parties to this Agreement. Each Party to this Agreement shall be individually responsible for its own obligations. 10.2 Notwithstanding the foregoing, if one or more wells are drilled, the Parties agree to adopt or enter into a tax partnership, unless both the Fannor and Fannee agree not to enter into such a tax partnership. To the extent a tax partnership is formed, for tax purposes UNOCAL shaH be deemed to contribute the Subject Lands to the partnership and Annstrong's cash paid to drill the welles) shall be considered a contribution to the partnership. 10.3 Farmee shall protect, defend, indemnify, and hold UNOCAL, its affiliates, and its officers, directors, agents, representatives, and employees, and their respective successors and assigns ("Indeìnnified Persons"), hannlcss trom and against all claims, losses, judgments, demands, damages, costs, expenses, and causes of action, including a.ny civil fines, penalties, costs of clean-up or plugging liabilities for any and all operations and activities conducted on the Subject Lands by Farmee or its employees, representatives, contractors, or agents ftom and after the Effective Date of this Agreement (collectively hereinafter "Claims"), excluding only Claims arising solely from the gross negligence or willful misconduct of Farmor. It is expressly agreed that the term "Claims" as used herein shall include without limitation any claim made or cause of action asserted on account of any personal injury or death, damage, destruction, loss of property, or contamination of natural resources (including soil, surface water or ground water) to the extent that the claims, losses, judgments, demands, damages, costs, expenses or causes of action result from or arise out of Fannee's acts or the acts of Farmee's employees, representatives, contractors, or agents, whether acting jointly with others or separately, or the omission or failure to act of Farmee, its Page 10 of 14 355024 Farmout Agreement D6!C;: 20 04 11:20a . . p. 12 employees, contractors, representatives, or agents. Without limitation, the duty of Fannee to protect, defend, indemnify and holdhannless Indemnified Persons under this Agreement shall apply to all Claims brought by any person, including (without limitation) Farmee's employees, agents, or representatives, and also including (without limitation) any private citizens, persons organizations, and any agency, branch or representative of federal, state or local government. The duties and obligations of this Section IO shall survive tennination or expiration, in whole or in part, of this· Agreement. 11. Force Majeure. All obligations, except the obligation to pay money when due, of each Party shall be suspended while, but only so long as, a Party is prevented tram complying herewith, in whole or in part, by strikes, lockouts or other labor or industrial disturbances, whether or not affecting employees of a Party and without any obligation by a party to adjust or settle any labor dispute, governmental action or action taken at the request of any governmental authority, acts of God, severe climatic conditions, accident, war, insurrection, rebellion, invasion, uncontrollable delays in transportation, inadequate facilities for the transportation of materials, unforeseen and unexpected inability to obtain materials from establishèd or generally recognized sources of supply, inability to obtain any necessary pennits or licenses from governmental or administrative agencies on reasonably acceptable terms, or other matters beyond the reasonable control of such Party, whether similar to the matters herein specifically enumerated or not. If the obligations of any Party are suspended as set forth in the preceding paragraph, such Party shall give notice of suspension as soon as reasonably possible to the other Parties, stating the date and extent of such suspension, whether it is in whole or in part, and the nature of the cause thereof. Any Party whose obligations have been suspended in whole or in part as aforesaid shall resume the performance of the suspended portion of its obligations as soon as reasonably possible after the removal of the cause thereof and shall thereafter immediately notify the other Parties of such removal. 12. "Most Favored Nations" Provision. In the event that Fannee enters into an agreement with any other KRU Working Interest Owner pertaining to farmout of the Subject Lands that is in any way more favorable to such other KRU Working Interest Owner than this Agreement is to UNOCAL, Page 11 of 14 355024 Farmout Agreement Dee 20 04 11:20a . . p. 13 including, without limitation an agreement containing an overriding royalty interest greater than the Fannors Override under this Agreement, then within 30 days after execution of such other fannout agreement, Farrnee shall offer those terms to UNOCAL in writing, and upon acceptance by UNOCAL within 30 days from receipt of the notice of more favorable tenus, this Agreement shall be reformed to reflect such terms.. 13. Matters of General Application. 13.1 Notices. All notices or communications allowed or required pursuant to this Agreement (IINotice(s)") shall be in writing, and shall be delivered in pt:rson or sent by United States Mai1(certified, return receipt requested), facsimile (where a successful transmission report is received and retained), or Federal Express or other U.S. publicly traded ovemight delivery service that provides a reliable written record of delivery, properly addressed to the Party to whom given, with all postage and charges prepaid. Notices shall be addressed to the Parties as follows: if to UNOCAL: if to UNOCAL: Union Oil Company of California P.O. Box 196247 Anchorage, AK. 99519-6247 Attention: Land Manager Telephone: (907) 263-7600 Facsimile: (907) 263-7698 if tó Fanne~: Armstrong Alaska, Inc. 700 17th Street, Suite 1400 Denver, Colorado 80202 Attention: Vice President -- Land Telephone: (303) 623-1821 Facsimile: (303) 623-3019 Any Notice given shall be effective upon delivery within noIÍ:nal business hours, or if delivered outside of normal business hours, upon the next business day. Each Party shall have the right to change its address or the title of the person to whom such Notice should be directed by giving ten days' advance Notice as provided herein to the other Party. Page 12 of 14 355024 Farmout Agreement Dee 20 04 11:21a . . p. 14 13.2 No Finder's Fees. Each Party represents and warrants that no person, including without limitation, any director, employee, or agent of any Party, will give or receive any commission, fee, rebate, gift, or entertainment of significant cost or value in connection with this Agreement. 13.3 Media Releases. Fannee shall not make any press release or public statement concerning entering into this Agreement, Well Data or well test or reSults in or on the Subject Lands or matters addressed herein without the prior written approval ofUNOCAL. 13.4 Assignment. Fannee shall not assign any of its rights, obligations, or interest in or to this Agreement to any other party without the prior written consent ofUNOCAL, which shall not be unreasonably withheld. UNOCAL may assign its interest in this Agreement upon notice thereof given to Fannee. 13.5. Integration. This Agreement, including the attached Exhibits and agreements referenced herein, constitutes the entire agreement between the Parties regarding the subject matter hereof, and supercedes all prior negotiations, discussions, written or verbal, concerning same. In case of any direct conflict between this Agreement and the Special Joinder Agreement, the latter shall control. This Agreement shall not be modified except in a writing executed by the Parties. 13.6. Governing LawNenue. This Agreement shall be governed by the laws of the State of Alaska, except that any doctrine of conflict of laws that may direct or apply the law of any other jurisdiction shall be disregarded and not asserted or argued by any Party. Venue for any action brought hereunder shall only lie in the Superior Court for the State of Alaska, Third Judicial District at Anchorage or the United States District Court for the District of Alaska at Anchorage, Alaska, as appropriate. 13.7. No Waiver. The failure of any Party at any time to require perfonnance of a provision of this Agreement shall not constitute a waiver of the same or any other provision of this Agreement, and shall not limit any Party's right to thereafter enforce the same or any other provision of this Agreement. Page 13 of 14 355024 Farmout Agreement Dee 20 04 01:20p 1211712884 /.6:28 . 1761H 6TH FLCŒ . p.2 PAGE 82 ,.-. 13.8. Intcrpret$tion. Tho headings u8cd in this Agreement are for convenience only and will b~ disrcprded in interpreting this Agreement. Each Party hereto haa bad the opportunity to its aatiøfaction to eoJisult with attome)'l and other advisors of its choice in connection with negotiation, execution, peñcmnanoc. end results of this Agreement, and, as a consequence, the rule calling tor an . agreement to be strictly construed against the draf\er shall not apply. 13.9. Successors And Assigns. This Agreement shall be binding upon and inure to ttte benefit of the Parties and their respective successors and assigns. 13.10 Further Assurances. The Parties shall execute such further insttument$ and dotumeJ1ts nccessary to give fW] force and effect to all terms of this Agreement. 13.11. Counterpart Execution. This Agreement may be executed in identical èounœrparts, aU of which taken together shaH fonn one and the same Agreement. IN WITNESS WHEREOF, th.e Parties have set their band hereto effective as of the first date above written: By: ~/,.-- ~ Title: 0c? P/fr-rr;.r .tJ(l;.Pf/ r" U.ion Oil CompaDY of California 8~~~j¡JJ IzJ,NY TItle: Þ""'"tIY-~F,~ Page 14 of 14 355024 Farmout Agreement D~c 20 04 01:21p 10.4 . ~. Cf4. O'ÞJ~ UG!. ~~¡)';\¡¡f;~:,"9i.1k ,~.~r~:~ . ~3,"_.Ø~ ~f, <¿~ lei ¡1 '.!. {"...:. ..... .... I..··. g-~... ·10 i "'!.-oN ....~s:t.øl I.. . ':'.. . ·/·:i.... :; m 01 ......¡ 'CÒòP¡. .0 023, I .' I' .,.. ~ I ," J' , '.. . ' @ BP,CHV. CP+I.;uC~x9r'J/i3p:~HV.Ç;p~!U~~M. B ,CHV. CP~I.\J.?l"X~ ." ·~1·'.:·i "~'?:':'~6":;~:! Cò<qc.- - - - -1Î~ - -1- -";).>/;;' '1~':' ]~1." .:; 415 . i . j:;~':~~~;Ü" ,; i ::#.}~~~;~r.~.ÁÒL3!5030 . . ~ ~:' .>:> '. :..·.~·;:;;(:';;~.4~-J~; ~~<;.:.: ;." .. '. ;Llk~ ~:: . .. :3P,;Cr.w.OPAl, UCL. xø\'t , . .;" .;;;;;::.:::,..~ .': .. '.". ~,. , ;'_;';~_"';';.'" I ~'~ ~ ·:.:·;.:'-:4?::;;:·.;~ \.. ""-.."'.~. \. I rig .. ·t¿o 2" 22 . ?4 .. '.:" 1!:-;·'..·..·-..·· '>(}, . 2 .' 22 ' :j~;.;;' ~ . :.. i' .AI?Lm5522:'" ; .:: :);:A~)L~5~:'~ j ::.: ADLO ~·13 ::::.:\i i - ~o O&~~ ~ . . _... .' p. ~:.:7.::.CL,...~....¡:.(-?:.~.~_::::..;;.....:.....,:M\.:~.......:'.;..,:,...:.' ...;...:,~,'::;..'..'...p.._;;.....:,:..::;.:.O.~'.'_."...:.~.:.~.~.".'"3:~.;:.r..~.u..:.'.'.·.':~..·'.l.;.;..~....·...~.::....M.:.~.~~'.~..~..;.....;...:.F..~.'.:.:..:.:;'.<...iH.2.:.~~."U..~. '..?....;:.....::~:.:.;.; b:;;~i;;".,,,¡ CO;;~,-@> . _ .' ~ '. . ;.~.. 31AP.·~J~..... 'iJ2 aFl:k :; a;~,.....':Y:rn'r::.. 32 .. . .::,:';"33' .~. i "~~';::. ~ 4·.·.' :: )/;H:;>~5?1: '. . }\. ADL02520 ... . BP.C~.C~AJ,UCI..X~~:'· r:iP,W,~+lJCl.XOM BP.CHV,CP4J.UCLXOM BP.c~~;(:~¡~4:~OM I BP.cHV..Jk~GL!XdM BP.;P~ .' 61-3113 5. . .,:.! ::'~-'S4 ,) 21 Conoc~hnllps ". .....~.~ - r.. ~¡.. ¿,.~~ .'. -~ ---""O~..œ"!"'-:'1·':' :..;......:.....:.:.-.. Alaska, Inc. :0 +:~.j·;t·~u9~~. J8·010~6· rtlCiP.3tin~1i:t =~ J1 .~ Exh ibl"t IRA II to .0': -:·:r.··;:...<'\u: .... . ^1a5i3~ AD!J)21$S3F::~;~\:;';':" 355024 Farmout Q., XO~':.:;. BP,¡~V,.~: U~XO~: BP~ em, :CPAI. tiel, ·XOf\. . SI', CHV. CPA., UOl;xoivf:L . ß Ag ree men t 13 . : .;;:)}~;:~r: ~ . .·'6 . I. ;,~~:: . 14 13 ';'::~\<.., 10-14-04 04060201000 1- "...... . .... ''', ..... .. :. ,'" . ¡:f)/ .. 3ÖY' 29 26 . .., '.:::" 0S-;31...;g3 , ... ..36 ·...31'·· 32 ~., ':"';;' ".. . ..\, ....:;. ~OM 1 Dee 20 04 01:20p . . . LEASE NUMBER Portions of ADL 355024 LEASE DATE 6/1/83 . EXHIBIT "B" to 355024 Farmout Agreement SUBJECT LANDS LEGAL DESCRIPTION Insofar and only Insofar as said lease covers lands outside the Participating Area for the Kuparuk River Unit T 14 N, R 8 E, UMIAT MER Sac 24: Protracted, All (640); Sec 25: Protracted, All (640); Sec 36: Protracted, All (640); T 14 N. R 9 E. UMIAT MER Sec 19: Protracted, All (617); Sac 30: Protracted, All (620); Sec 31: Protracted, All (623); .. p.3 WORKING INTEREST OWNERSHIP ExxonMobil Alaska Production, Inc. 0.3648% XTO Energy Inc. 0.1086% Union Oil Company of California 4.9506% BP Exploration (Alaska) Inc. containing approximately 3,780 acres more or less, 39.282233% Note, the Subject Lands are ConocoPhillips Alaska, burdened by the proportionate Inc. share of base royalty to State of Alaska, net profit share to State of 55.293767% Alaska, and all other burdens of record as of the Effective Date of this Agreement. Reserving to Farmor its interest in and to the Remainder of ADL 355024, to wit: T13N, R09E, UMIAT MERIDIAN, ALASKA, Sec. 5: Excluding USS 4275; Sec. 6, All; Sec. 7: Excluding USS 4275; Sec. 8: Tide and submerged lands. Exhibit "B" to 355024 Farmout Agreement . . Gentlemen: In order for KMG and AAI to move forward in preparation for drilling a test well on ADL 355024, the AOGCC is requiring us to have your three respective companies execute the attached Notice of Change of Ownership forms. Please note there is an individual form for each of your respective companies. We ask you to please execute in the space provided under Article 8 and immediately courier over to the AOGCC. It should go to Stephen Davies if it is sent tomorrow (25th), if it is next week it should go to Bob Crandell. The effective date is set at March 1st, because it is coincident with the effective date of our assignments, however you should date your signature on the date you execute the form. I apologize for the inconveinence and want to thank all of you for your assistance in this matter. If you have any questions or comments, please feel free to give me a call. Yours truly, Ed Ed Kerr Vice President of Land and Business Development (303) 623-1821 CONFIDENTIALITY NOTICE: The information contained in this message is for the exclusive use of the addressee and may contain confidential, privileged and non-disclosable information. If the recipient of this message is not the addressee, or a person responsible for delivering this message to the addressee, the recipient is strictly prohibited from reading, downloading, photocopying, distributing or otherwise using this message, its contents or attachments in any way. If you have received this message in error, please notify Ed Kerr immediately by replying to this e-mail and delete the message from your mailbox... Thank you. Content-Type: image/tiff i Change of Ownership1.tif b 64 .. .. Content-Encoding: ase 1 of 1 2/24/20057:09 PM ·.:I,.w~emr!.'~IWI!.II~~WI,I:r!.\.~,'m"~¡;":(".~'~"¡"!."y»'r!.':1'·1~.:I::I~',~ :·1 If¡' '~~' W~~, · ',"'I"I¡~J.~~)':~~.I~~,:~~, ' ¡~\,~~~;ý~i~~~~!I!~~~~l~~~f.,,»>r ....¡\..,/r:.:~J~~¥~~~i.~~[v; if .. i . ..·..:~~':":t'"~:..~"'f'~..rr~~\·;··¡ ..( . ". Ç\ {'1"..:.::\' 'V':":!,' ..;. :W/~?~~':'$':;'~:õ~(;;:~"~::'" ':, ~'39bòCSTREET, ,',~ ';', ;: }é< ;,ó ", / ~,: ~ ~2 PAJI:[""Ì""AO :.';. , ,>,' ANCHQRAGE,~ ALAsKA 995Ò3,' j ; ; :; ó;,' ',' ' 0111" .. .. .-"' , .. (907n1''¡¡?QfJ ." .: .. . .. ':.. .. "' .. .:/ ". . . , ¡ n>, ONE ,"?: )f~ 'I;TS~ ;.. .".' / PAY. ONE HUNDRED DOLLARS AND 00 CENTS ******************,*****************r*~*****************"'**'¡,********,***~************************ ~ M ~ :,...;" c V01D OVER $100.00 ~ ~ fè STATE OF ALASKA 6~riJ¥:OFOIL & GAS CONSERVATION COMMISION 333 WEST 7TH ~VE STE 100 ANCHORAGE, AK 99501 .: III . . b . 5 2111 I:. 2 5 20 0 OS? I: :.?...? 8 2 ? · .111 . . . TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPR1ATE LETTER/PARAGRAPHS TO BE INCLUDEI) IN TRANSMITTAL LETTER WELL NAME ktg tA./l PTD# :2-CJ5 - {)¿S;- DeveJopment Service CHECK WHAT AP:PLJÈS ADD-ONS (OPTIONS) MULTI LATERAL (If API Dum ber last two, (2) digits are between 60-69) I /' Exploration Stratigraphic "CLUE"· Tbe permit is for a Dew wellbore 'segment of existing weD·. . Permit No, .. API No. . ProductioD. sbould cODtinue to be reponed as a function· of tbe original API number. stated above. . HOLE )n accordance witb' 20 AAC 25.005(1), an records, data and logs acquired. 'or tbe pilot bole must be clearly differentiated "in botb name (name OD permit plus PH) and API Dumber (50 70/80) from records, data and locs acquired for well (name on permit). Pn.,OT (PH) SPACING EXCEPTION DRY DITCH ~ SAMPlÆ Tbe permi1 is approved subject ·to fuD compliance witb 20 AAC 25..0SS~ Approval to peñorøte and produce is cODtingnt upon issuance of ~ conservation order approviDg a spacing' exception. (Company Name) assumes tbe JiabiUty of any protest to tbe spaciDg .~~ception tbat may occur. All dry ditcb sample sets submitted to tbe Commission must be ip DO greater 1ban 30' sample intervals from below tbe permafrost or from where samples are fint caught aDd ]0' sample·j¡iter:vals through target zones. D D Well bore seg Annular Disposal On Program EXP On/Off Shore 12082 Unit Well Name: KIGUN EXP / PEND GeoArea 973 . / ~ ~ /~ - - l' '.l ý~ yr_~ Entire_ w~II Jie~ withinAOL_3_55Q2~, whichi~ in KuparuK River Unit. ~ Sf', CPAI and _Unocal mu~t file Nptice_of Cha_nge otQwner:sbip forms, _and ArvOlJg, XTO _and Exxoollllobil m_ustfile_Oe_signatioo otQp_erator fOHns. Initial Class/Type Yes _Yes Yes No_ Yes Yes Yes _Yes No_ Yes Yes Yes Yes NA _NA NA NA Field & Pool wel This is ¡;¡ $idetra~1s oUhe_ existio9- ruy~a_q_SJ PTD#: 2050250 Administration 2 3 4 5 6 mÞ 7S~utficieoLacre~geay~ilable in_drillilJg uniL _ 8 Jtdevigted, js_ weJlbore plgtincJu~ded _ _ _ _ _ 9 _OJ>er:ator ooly ~ffected party ~ ~ _ _ _ _ ...__._..~O _OJ>er:ator bas_appropriateJ~ond inJorc~ _ _ _ 0:J~ 1 Permit c_an be issued wjthout co_nservaJioo order Appr Date 1 Permit c_an be issued wjthout gdmioistratille~apprpvaJ -~ . . .~ S~ . Can permit be approved before 15-day wait ~~ 14 WeJliocated with;n .... .nd~'t'"" ,,"'o.;zed byJojectiøo Orde,' (put 15 AJI welJs_ witþtn J l4Jl1ile_af~a_of b_ouodary W~I W~II W~II in~ cpmm_entS)_ (For onJy) 100 CQnductorset in original w~II, TUY<laq_ State #1 (204-249). Plao employ_s ~surfa~ce casing _setbetow $~br<lder Bluff._ AIJY_ aquifers sh_ould be ÇQvered- Surface casing will Þe çementedtQ aboye the window._ !\IQ produ_ction_ casing plan~ned. _ fJlan_ is to drill <Iod~ ab<lnd_on Any hydrocarbon _ZOne$ will be jsolated wjtb cem~nt. Coun¡e$ diverge- DriIJiog waste to be hauled_ Rig is~uippedwith steel_pits. 30_5~058. _ ~ ~ ~ _ _ _ _ _ prOJ5imity C!nalysis per(orme_d, O_nly _neC!rby wellj~ C!b_ando_ned portion pf Qrigin<l'-wel 60P st<lck_will C!lready~beJI') plat:,e, _ Maximum expected fOlJ1)aiion pre~sure9_8~ EMW jn SagRiller- No reseJlle_pitJ>lann~d, - J 0.8 ppg. 9.6 <IlJd 9.8 9-0 Planned MWs e MASP calculated at 3348 psi, 5000p$ite~t plalJned. Rig ~h<ls sensors al')d~aJaJms. NA _NA No~ NA Yes Yes Yes Yes Yes NA Yes Yes Yes Yes Yes No~ NA service wel known USDWs _CMT vol, adequate~ to circ~ulate_ on _cooductor & surf C$g _CMT vol, adequ_ateJo tie-in long _string to_surf ~g~ _CMT wi coyer al koow_n _pro_ductiYe borizons '"'-~'"" I i"~;n"~1 - ,'ð",,_"ð 'M C,~T, B _&_ permC!fr_ost lE a pit ri abandonment been approved tE I E n -Proposed _ _ _ _ _ _ _ _ ~1 j eel reguJatioos_ _ _ fll ë ltic_B. eQuip Jistadequate _V_""~IU;::ll de_..,t;:r!.'~ ....a_'i;i"1"!'!'''''_L~ Iy._ 16 17 18 19 20 21 22 23 24 25 26 27 ,28 129 I 30 Engineering Date 3/3/2005 Appr TEM lo_(put psig in~comments) _C_hokemanifold compJie~ w/API Rf'-53 (May 84)_ ~ _ ~ _ _ ~ Work wi!l occUr withoutoperç¡tionshutdown_ ~ J~ pres,ence of H2S gas_ prQbable ~ ~ . ~ _ _ ~ _ _ Mecha_nicç¡c:pndjt[onof weJI$ wlthin AOR yerified (For~s~erv¡ce Wf¡1 _BOPE$,do _they me~t reguJation BOPE_Pf~S$ ra1ing C!p$)ropÖate; _t~st 31 32 33 34 1.,.,IO""..yoOlyl :G 0../1_ /7 - ( c' 'ubi - ~riS J~ Exploratory well; mudloggerswHlbeonduty,ga$ &H2S _detector,S wilLbe _used_. Exp~cted pre~sure j~ oormal !8-4 PP_fLEMW) to HRZ, tben 9_.8 ppgEMW; will be dJilI~d with 9,0 - 10-13 J>pg mud. Sidetrack ofthe_e_xi$ting_TuyC!aQSt 1 well, which also t<lrgeted the Jvjs_hak fm- Company KERR-MCGEE OIL & GAS CORP P_ermitJee attache~~ ~ ~ LeC!se ~numberapprop-riate ~ ~U_nlque weILn_ame_and lJumb_er _ _ ~ ~ Joc<lted in_a d_efine~pool ~ ~ Jocated properdlstance from driJling unit Jocated prpper _dlstance_ from Qtb~r reyiew idelJt[fied (For ~efVjce well only) Pf~-produced injector; ~uration_of pre-J>ro~uction les~ thgn_ 3 months (For ACMP F:inding 9f CQn,Si'slency~ ha$ bee_n j~sued_ for_ this pr~oiect ~Condu~lor string_PfQvlded S_ulfC!t:,e _casing_ proteci~ C!I 1-12S hasnolbeeo detec1~dwhile driJltng wellsJI') the <Ire<l. No~ Y_es NA _NA Yes only) Permit can be lssued wfo_ hydrogen sutfide rneC!swes D~alapreselJted Qn_ pote_ntiC!1 oveJpre~sure ~ZOne$_ _Selsmic_analysjs of $haJlow gC!s_zPlJes Seabed _condition $urvey(if off-sh_ore) _ _ Contact namelphoneJorweelsly progresueports 35 136 Date 37 2/18/2005 138 i 139 Geology Appr SFD 907 ~3_39-p269 D¡;;,!e / Þ Sidetrack of Tuvaaq, 1 eXPlorat. ory ~Hqwn~. hip :n~~~n~tio~ ~ op. erator issues must be settled prior to issuing permit >r;~,,- tOdrill·~/(IS6t~ ~ ~. ..3/I'DÇß ~~I~ ' Skip Coyner Date Engineering Commissioner: ;~'3¡1-/5 . . Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. · ÜJre LaI:Î RESERVOIR DPTIKIZATIOIf Petroleum Services Division 6316 Windfern Houston, Texas 77040 USA Tel: 713-328-2565 Fax: 713-328-2567 :) d 5- - O~Jr- ROUTINE CORE ANAL YSIS DA TA FINAL REPORT FOR Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 CLB um:J NYSE .. ÜJrE! Lab RESERVOIR OPTIKIZATION Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope. Alaska Table of Contents 12-Jul-05 Petroleum Services Division 6316 Windfern Houston, Texas 77040 USA Tel: 713-328-2565 Fax: 713-328-2567 Discussion ...... ......... ... ......... ... ......... ......... ... ... ...... ...... ... ...... ... ... ...... ......... ......................... Page(s) i - iv Data Tables Routine Core Analvsis Program Core Analysis Data ......... ... ... ... ...... ... ... ... ............ ... ... ........... ... ... ... ... ............ ... ...... Page(s) 1-3 Analysis Protocol... ......... ............ ... ...... ... ... ... ... ...... ... ......... ... ... ... ..................... ... .Page(s) 4 Description & Lamination Key................................................................................ Page( s) 5 Laser Particle Size Analysis Data ............................................................................ Page( 5) 6-7 Detailed Particle Size Analysis (Graphical & Tabular Data) Figures Routine Core Analysis Proqram Permeability vs Porosity @ Various NCS ... ...... ... ... ...... ...... ... ... ....... ... ....... ......... ... .....Figure 1 Permeability vs Porosity @ 550 psig NCS ................... .................. ............................. Figure 2 Permeability vs Porosity @ 1100 psig NCS (Mean Net Effective Stress) ..........................Figure 3 Permeability vs Porosity @ 1650 psig NCS ... ...... ...... ............ ...... .......... .... ...... ...... .....Figure 4 Permeability vs Porosity @ 2200 psig NCS ... ...... ............ ... ......... .......... ................ ... ..Figure 5 Permeability vs Porosity @ 2750 psig NCS ...... ......... ......... ......... .......... .......... ...... .....Figure 6 (K/<Þ) 0.5 vs Water Saturation @ 1100 psig NCS (Mean Net Effective Stress) ... ........ ..........Figure 7 Permeability vs Grain Density @ 1100 psig NCS (Mean Net Effective Stress) ..................Figure 8 Permeability vs Mean Grain Size @ 1100 psig NCS (Mean Net Effective Stress) .............. Figure 9 Spectral Core Gamma (3700 ft - 3850 ft) .. .... ... ... ....... ...... ... ...... ......... ... ...... ...... ...... ... Figure 10 Depth Plot (3700 ft - 3850 ft) ... ...... ......... ....... ... ... ........... ...... ......... ...... ......... ......... ..Figure 11 Profile Permeability Plot (3700 ft - 3850 ft) ... ... ... ... ............... ... ... .... ........... ............ ... ..Figure 12 Statistical Histograms (Mean Net Effective Stress) ......... ......... ...... ...... ...... ... ... ... ...... ...Figure 13 Appendix I Core Inventory...... ... ...... ......... ...................... ... ...... ... ... ... ... ... ... ... ...... ... ... ... ... ...... .Page(s) 1 Appendix II Sample Inventory............... ...... ... ..... ...... ... ... ...... ... ... ... ...... ... ... ... ...... ......... ......... ..Page(s) 1-4 Appendix III Statistical Averages ... ...... ... ... ... ............ ... ... ... ............ ... ...... ... ... ... ,.. ...... ... ...... ... ... .Page(s) 1 Appendix IV Sheer Stress Viscosity Data ... ... ............ ... ... ... ... ...... ............ ...... ... ...... ... ... ......... ... ...Page(s) 1 API Gravity Measurements ... ... ... ... ....... .................. ... ... ...... ... ... ...... ... ... ... ... ...... ... ...Page(s) 2 Appendix V Spontaneous Imbibition Report Analytical Protocol I Table of Contents ... ...... ... ... ... ...... ...... ...... ...... ... ...... ... ...... ...... ... Page(s) i Spontaneous Imbibition Images ... ... ... ... ............ ......... ......... ...... ......... ... ... ...... ......... Page(s) 1-9 Appendix VI Preliminary Routine Core Analysis Instructions ... ....... ......... ...... ... ............ ......... ......... Page(s) 1-4 Appendix VII Final Report Distribution... ... ..................... ......... ... ... ......... ... ... ......... ...... ................ Page(s) 1 CD-ROM Contains all core analysis data (graphical & tabular) ClB omm MISE Â ftTULtIUIUII'tltu Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska HOU-050228 Conventional Core Analvsis Final Report The laboratory core processing and measurements discussed herein were performed by Core Laboratories, Houston, Texas under the direction of Dr. Howard White, of Kerr-McGee Oil & Gas Corporation, and Dr. Robert Skopec, of Petrophysical Applications International, The Woodlands, Texas. At this time, a number of additional studies remain in progress, including Advanced Rock Properties & Geology. ROUTINE CORE ANALYSIS PREPARATION Inventorv Upon arrival (March 24, 2005), an inventory of the core was first prepared to verify the shipment contents. The core inventory, including core number, segment or tube number and depth interval, was forwarded to the client and posted to a secure website. An inventory of the disposable inner barrel tubes is included as Appendix I of this report. Core Gamma The spectral gamma activity of the core was measured, converted to API units using calibration tubes of known activity and reported to the client in tabular and digital formats. These data are illustrated in Figure 10 of this report. CT Scanninq Core Lab's High Resolution UltraScansm CT Scanner was used to assure proper orientation of laminae prior to slabbing and plug acquisition. This aided in the exposure of maximum dip and strike for plugging and photography. Slabbinq and PhotoQraphv A low vibration vertical band saw was used to slab the friable core per instructions from Kerr-McGee. The geological slab thickness was cut to client specifications (specified by Kerr-McGee as 1/4 of the segment diameter). The geological slab was prepared for photography by carefully removing cutting debris. Photographs were taken as soon as possible after slabbing to ensure core and fluorescence integrity under visible and ultraviolet light sources. Photographs were provided to Kerr-McGee for proofing. Core Laboratories was then authorized to print five (5) sets of half-scale and overview format prints. Photography reports were issued under separate cover (March 29, 2005). Sample Acquisition A set of one hundred forty-one (141) 1.5" & 1.0" diameter plugs were cut at specified locations as directed by Kerr- McGee. These included plugs designated for routine core analysis (horizontal (AH) & vertical (BV)), thin section, X-ray diffraction, scanning electron microscopy & long-term storage (CH). Sample density, orientation and location decisions were made in conjunction with the client on the basis of log data, core gamma data and lithological observations. Decisions were also made regarding sample diameter; drilling fluid and end trim preservation and storage technique. A comprehensive sample inventory is included as Appendix II of this report. Sample Preparation Upon completion of sample acquisition, a 1/4" trim was taken from each end and archived for future use. Each sample was then carefully inspected for parallel ends, cleaned of all cutting debris along sample axis and end faces and encapsulated using Teflon tape, nickel foil & two (2) sets of stainless steel screens (250 mesh screens in direct contact with each sample end & 100 mesh screens on top to provide structural support at each sample end). The encapsulated samples were then "seated" at a nominal stress (200 psig NCS), liberally wrapped with plastic wrap and placed into opaque, hermetically sealed sample containers. The samples & trims were then placed into a freezer until required for additional tests. A comprehensive sample inventory highlighting specific sample tests and location can be found in Appendix II of this report. Horizontal routine core analysis plugs were selected on 1-ft increments and routine vertical samples were selected on 3-ft increments as core quality allowed. ROUTINE CORE ANALYSIS PROCEDURES Pilot Study Samples A subset of six (6) samples was selected for a Pilot Study to determine the impact of routine core analysis methods on data quality. A number of geological tests, including XRD, SEM & thin sections description, were performed on these samples. It was determined from XRD analyses that routine extraction and drying methods would have no adverse affect on routine rock properties. These data have been reported under separate cover (Core Lab File No.: BR#050401-1). The petrophysical portion of the pilot study program is still in progress and will be included in the Special Core Analysis Report upon completion. Routine Core Analysis rDean-Stark Analysis / Extraction for Water and Oil Saturationl Dean Stark analysis follows API RP 40 procedures. Toluene was conditioned (pre-boiled) to remove any absorbed water. Each sample was placed in a pre-weighed thimble to save any lost grains during the extraction process. All glass joints of the Dean Stark apparatus were sealed with Teflon tape. A moisture trap (desiccant tube with fresh activated silica gel) was placed on the top of each condensation tower. Specific Dean-Stark Procedures Fresh reagent grade toluene was used for each plug analyzed. The flasks and glassware were cleaned between each use to ensure there was no residual water or tracer present. An aliquot of toluene (approx. 25Occ) and 1.0 cc of water was added to the flask and conditioned. Each calibrated Dean Stark sidearm was inspected and an initial water measurement was made at this time. The system was kept closed except when adding or removing the sample in order to keep toluene loss to a minimum. After determining that sample mineralogy was not heat sensitive via XRD analysis (File No.: BR#050401-1). each core plug was weighed to an accuracy of ±O.001 g, placed into a pre-dried and pre-labeled glass thimble to trap lost grains and re-weighed to the same precision. A fiber filter was placed on top of each sample to minimize grain loss due to the capillary effect of toluene being dripped onto the sample during Dean Stark extraction / distillation. The plug was then immediately loaded into the Dean Stark apparatus. All joints were sealed and extraction / distillation was initiated. Toluene was refluxed until no further change in the water volume in the receiver was observed for twelve (12) hours (minimum Dean Stark extraction time is 48 hours). A Teflon swab was used to remove water droplets from the neck of the condenser and the sidearm. The water volume was recorded to within ±O.025cc (1.2% PV @ 10% porosity). Upon completion of Dean Stark extraction/distillation, the samples were batch extracted using chloroform/methanol (83:17) & methylene chloride/methanol (75:25) azeotropes. Solvent discoloration was used as an initial indicator of cleanliness. Once the solvent showed no sign of staining, the samples were soaked in methylene chloride for six (6) hours and the effluent was inspected for fluorescence. The samples were then transferred to methanol in the absence of effluent fluorescence to remove the remaining salt from the samples. A silver nitrate solution was used daily to indicate the presence or absence of salt in the effluent. Once all salt and hydrocarbons were extracted from the samples, they were moved to a convection oven for drying. Each sample and thimble apparatus was dried in a convection oven at 240°F until weight stabilization, ±0.001 grams to facilitate a total porosity model. Upon weight stabilization, the samples were removed from heated drying and placed into desiccators. Each plug & thimble apparatus was weighed within ±0.001 g. Each sample was then removed from the thimble and weighed independently. Petrophvsical Measurements Grain Volume Direct grain volume measurements for the horizontal and vertical plugs were made using an automated porosimeter. This instrument utilizes the principle of gas expansion as described by Boyle's Law. Helium was used as the test gas. Material balance adjustments were made for sleeve and screen volumes. The instrument calibration is maintained on a daily basis and test standards were run to verify instrument accuracy. Grain Density Calculated grain densities were obtained utilizing grain volume measurements and sample weights. Material balance adjustments were made for sleeve and screen weights. Grain densities were checked against lithology standards. 11 PluQ Dimensions Sample lengths and diameters were measured using digital metric calipers. Material balance adjustments were made for sleeve and screen thickness. Porositv Pore volumes were directly measured on all routine samples at a mean net effective stress of 1100 psig net confining stress (NCS) in a hydrostatic core holder using the Boyle's Law double-cell technique (API RP-40, Sec 5.3.2.2). Every fifth horizontal sample was measured at four additional stresses (550, 1650, 2200 & 2750 psig NCS) provided by representatives from Kerr-McGee. Porosity was calculated using the following equation: Porosity = Pore Volume I (Pore Volume + Grain Volume) X 100 Permeability Values for permeability to air were measured using the steady state method at a mean net effective stress of 1100 psig net confining stress (NCS) in a hydrostatic core holder (API RP-40. See 6.3.1.1). Every fifth horizontal sample was measured at four additional stresses (550. 1650, 2200 & 2750 psig NCS) provided by representatives from Kerr-McGee. Sample permeability was calculated using the following equation: Kair = Q x u. x L x Pa åP x Pm x A where: Q = Gas Flow Rate (cc/sec) µ = Gas Viscosity (centipoise) L = Sample Length (cm) åP = differential pressure across sample (atms) Pm = mean pressure (atms) A = Sample cross-sectional area (cc) Pa = atmospheric pressure (atms) Profile Permeability After dissipation of volatile hydrocarbons. unsteady-state profile permeability measurements were made on the ~ sections at a frequency of ten (10) measurements per foot. Four hundred five (405) total measurements were performed to characterize core heterogeneity. The results of these measurements are illustrated in Figure 12 of this report. Viscosity I Gravity Measurements Two (2) samples (3787.00 & 3802.00) were selected for viscosity measurements & three (3) samples (3784.00, 3793.00 & 3802.00) across the recovered core interval were selected for API gravity measurements to illustrate the mud filtrate invasion profile. The results of these analyses are found in Appendix IV of this report. Spontaneous Imbibition Study Immediately following core photography of selected ~ slabs, a qualitative spontaneous imbibition study was performed on three (3) depth intervals [3784.00 - 3784.25, 3793.00 - 3793.25 & 3802.00 - 3802.25], employing synthetic formation brine (35000 ppm TDS) and lab oil (420 API) as test fluids, in order to qualitatively determine apparent core wettability. The results of these analyses should be considered qualitative. The spontaneous imbibition report can be found in Appendix VI of this report. Laser Particle Size Analvsis (LPSA) The Laser Particle Size Analyzer determines particle size by measuring the amount of light refracted by the particle surface. This is accomplished by the use of a Fourier lens and a light diffraction detector system consisting of three sets of photo diode detectors for low, medium, and high angle light diffraction. Measured particle size can range from 0.1 to 2000 microns and is determined as sample material dispersed in a transport fluid is circulated through a laser beam. A 0.5% hexa-metaphosphate solution is used as the transporting fluid to de-ionize particles prior to measurement. Quality standards are measured, and background checks on the transporting fluid are performed to ensure data integrity on a daily basis. Cumulative and incremental data are presented both in tabular and graphical formats. The moments of sorting are presented using the Trask, Inman, and Folk classifications on a per sample basis. Accurate measurement of grain size by the laser particle size analyzer is dependent on several factors including: representative sampling, granular angularity, proper cleaning of samples, proper operation of the LPSA unit, and quality control I review of the data generated. Laser Particle Size Analysis was performed on all routine core analysis samples. iii Sample Acauisition A representative end trim from each 'AH' routine core analysis sample was used for LPSA. Each trim was inspected and cleaned of any debris and/or fines material that may have been produced during sample preparation. Sample Preparation - Extraction Water and hydrocarbon extraction is necessary prior to LPSA measurement. Hydrocarbons were removed using a series of toluene rinses. Excess toluene was "wicked" from the samples using an absorbent material. The samples were then placed under a heat lamp to ensure complete drying. Sample Preparation - Disaaareaation All samples were gently disaggregated using a mortar and Teflon pestle. Extreme care was taken during this process to prevent grain breakage. The material to be measured was added to a solution of 0.5% sodium hexa-metaphosphate to de-ionize particles. System Set-up & Operation The laser optics particle size analyzer was rinsed prior to making any measurements. Laser alignment was performed prior to each sample run. A "background" reading of the carrier fluid was also performed prior to each sample run. A selection of standard samples is run on a weekly basis to check the machine's calibration. The system is drained of water and opened for cleaning and inspection every week. The system is also serviced on an annual basis to ensure proper calibration. The system must be operated according to the instructions provided by the manufacturer. Any attempt to circumvent the programmed procedures of the system is prohibited. Report preparation The raw data file created by the software was copied into proprietary software for the preparation and production of reports. Additional Notes · Sample lithology is determined using the laser particle size data. · The Vshale (%) presented here is calculated from the laser particle size data and includes the range from clay through medium grain silt. . · The Surface Area (Cs) assumes smooth, solid, spherical particles. · The Standard Deviation describes the width of the measured particle distribution. It does not provide an indication of statistical error about the mean value. · The Gravel Pack is calculated according to Saucier's technique, which assumes a ratio of six between the median grain size of the gravel pack and the median grain size of the sample. Twelve (12) copies of this report have been prepared for Kerr-McGee Oil & Gas Corporation et al. The final report distribution can be found in Appendix VIII of this report. The contents of this report, the CT scans and all graphs & plots are presented on the CD ROM located at the back of this report. We sincerely appreciate the opportunity to provide these data to Kerr-McGee Oil & Gas Corporation. ~. e .'21- Russ Peacher Core Laboratories Houston A TC Laboratory Supervisor February 10, 2005 References 1. "Recommended Practices for Core Analysis", RP 40, Second Edition, American Petroleum Institute, February 1998. IV · [o.-e Lab RESERVOIR OPTIMIZATION ROUTINE CORE ANALYSIS DATA for Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point Alaska File No.: HOU-050228 Date: June 9,2005 This report is based entirely upon core samples, soils, solids, liquids, or gases, together with related observational data, provided solely by the client. The conclusions, inferences, deductions and opinions rendered herein reflect the examination, study and testing of these items, and represent the best judgement of Core Laboratories, LP. Any reliançe on the information contained herein concerning the profitability or productivity on any well, sand, or drilling activity is at the sole risk of the client, and Core Laboratories, LP, neither extends nor makes any warranty or representation whatsoever with respect to same. This report has been prepared for the exclusive and confidential use of the client and no other party. PETROLEUM SERVICES DIVISION 6316 WINDFERN HOUSTON, TEXAS 77040 (713) 328-2565 FAX (713) 328-2567 Kerr McGee 011 & Gas Corporation Â File No.: HOU-050228 Kigun 01 Date: June 9, 2005 NW Milne Point Analyst(s): RP, MM North Slope, Alaska Cores: Conventional .tTlDltUtlSUYI[[S CORE ANAL YSIS DATA 550 Dsio NCS 1100 Dsio NCS 1650 Dsio NCS 2200 Dsiq NCS 2750 Dsia NCS Grain Smpl DEPTH Kair POR Kair POR Kalr POR Kair POR Kair POR Density K/Phi Sea Stw No (ft) (mD) (%) (mD) (%) (mD) (%) (mD) (%) (mD) (%) (glee) sqrt (%) (%) LITHOLOGY FLU 13AH 3768.70 9.29 24.12 2.51 23.39 0.998 22.51 0.728 21.68 0.687 21.55 2.742 3.3 1.0 93.9 Shale vslty no 14BV 3768.80 0.947 22.99 2.731 2.0 1.9 92.8 Shale vslty no 17AH 3770.95 5.42 25.27 2.707 4.6 26.3 68.4 Silt vshy lam(2,3) stks gld 19AH 3771.60 0.998 23.83 2.743 2.0 1.1 93.6 Shale slty lam(2,3) stks ft 20BV 3771.80 0.377 23.06 2.738 1.3 0.9 93.7 Shale slty lam(2,3) stks ft 22AH 3772.30 7.71 26.71 2.712 5.4 29.6 65.4 Silt shy lam(3,4) matt gld 24AH 3773.50 2.16 24.32 1.03 23.62 0.677 23.00 0.475 22.58 0.441 22.47 2.717 2.1 8.6 85.9 Shale slty lam(2,3) stks gld 27AH 3774.60 0.657 24.71 2.728 1.6 1.4 93.2 Shale slty lam(2) stks ft 28BV 3774.80 0.324 23.94 2.741 1.2 0.9 93.4 Shale slty lam(2) stks ft 30AH 3775.65 0.972 25.31 2.731 2.0 5.9 88.5 Shale slty lam(2,3) stks gld 32AH 3776.50 1.16 25.48 2.724 2.1 9.4 84.4 Shale slty lam(2,3) stks gld 35AH 3777.70 5.85 23.40 2.698 5.0 22.4 71.9 Sd vtg shy vslty gld 36BV 3778.00 332 33.40 2.686 31.5 62.9 30.9 Sd vt-fg cln gld 38AH 3778.40 851 36.40 798 35.60 749 35.02 720 34.63 686 34.26 2.665 47.3 65.4 27.8 Sd vt-fg eln gld 40AH 3779.50 70.8 31.53 2.714 15.0 42.7 50.2 Sd vtg sshy gld 43AH 3780.60 110 31.00 2.715 18.8 35.5 59.0 Sd vtg sshy gld 44BV 3781 .30 381 34.66 2.713 33.2 73.7 20.6 Sd vtg vsshy gld 46AH 3781.65 599 35.33 2.720 41.2 72.3 21.2 Sd vtg vsshy gld 48AH 3782.50 627 35.63 2.714 42.0 73.8 21.0 Sd vt-fg eln gld 51AH 3783.70 758 36.40 713 35.90 673 35.49 640 35.14 616 34.85 2.718 44.6 72.8 21.9 Sd vtg eln gld 52BV 3783.80 576 36.07 2.716 40.0 74.1 20.5 Sd vtg eln gld 54AH 3784.50 1.94 26.68 2.751 2.7 13.1 81.4 Silt shy mott y-w 56AH 3785.60 9.79 28.25 2.734 5.9 24.8 67.6 Silt shy gld 59AH 3786.70 10.1 26.27 2.734 6.2 12.4 80.2 Silt shy lam(3) stks gld Page 1 FINAL ROUTINE CORE ANALYSIS REPORT July 12, 2005 Kerr McGee 011 & Gas Corporation . File No.: HOU-OS0228 Kigun 01 Date: June 9, 2005 NW Milne Point Analyst(s): RP, MM North Slope, Alaska Cores: Conventional P-tTIDLtU"SUVlCtS CORE ANALYSIS DATA 550 Dsia NCS 1100 DSkJ NCS 1650 DsiD NCS 2200 DskJ NCS 2750 Dsiç NCS Grain Smpl DEPTH Kair POR Kair POR Kair POR Kair POR Kair POR Density K/Phi Sco Stw No (ft) (mD) (%) (mD) (%) (mD) (%) (mD) (%) (mD) (%) (glee) sq rt (%) (%) LITHOLOGY FLU 60BV 3786.80 5.8 26.21 2.729 4.7 14.6 78.7 Slit shy lam(3) stks gld 62AH 3787.50 2.17 26.25 2.741 2.9 12.5 80.2 Silt shy mott y-w 64AH 3788.60 3.46 27.13 1.64 26.39 1.32 25.99 1.18 25.72 1.02 25.43 2.736 2.5 14.4 79.8 Silt shy gld 67AH 3789.70 5.47 28.83 2.726 4.4 30.6 64.1 Silt shy mott gld 68BV 3789.80 9.86 31.09 2.735 5.6 21.2 71.4 Silt shy mott gld 70AH 3790.50 21.8 32.67 2.736 8.2 24.7 68.6 Silt shy gld 72AH 3791.50 126 32.58 2.726 19.7 54.1 38.7 Sd vfg vsshy gld 75AH 3792.25 284 33.47 2.730 29.1 64.3 27.8 Sd vfg cln gld 76BV 3792.70 202 35.81 2.715 23.7 39.8 54.9 Sd vfg cln gld 78AH 3793.50 9.21 31.89 5.21 31.19 4.44 30.82 4.08 30.49 3.61 30.16 2.752 4.1 45.6 48.9 Silt vshy lam (3,4) stks gld 80AH 3794.60 1.00 8.46 2.764 3.4 15.0 79.0 Silt vshy mott gld 83AH 3795.70 90.0 28.82 2.771 17.7 52.8 40.5 Sd vfg sshy gld 86AH 3796.40 834 35.00 2.691 48.8 76.3 18.7 Sd vf-fg cln gld 88AH 3797.70 1150 35.37 2.678 57.0 78.1 14.9 Sd vf-fg vsshy gld 91AH 3798.40 1040 36.17 1020 35.80 990 35.40 966 35.10 948 34.86 2.705 53.4 76.3 17.3 Sd vf-fg vsshy gld 92BV 3799.00 477 34.67 2.709 37.1 75.0 19.6 Sd vfg vsshy gld 94AH 3799.40 933 35.54 2.710 51.2 76.5 17.7 Sd vfg vsshy gld 96AH 3800.50 358 34.57 2.706 32.2 64.7 28.7 Sd vfg vsshy gld 99AH 3801.70 813 35.94 2.700 47.6 72.8 20.9 Sd vf·fg cln gld 100BV 3801.80 764 35.85 2.689 46.2 72.5 20.3 Sd vf·fg cln gld 102AH 3802.65 633 34.49 2.704 42.8 72.4 20.0 Sd vf-fg cln gld 104AH 3803.50 902 36.81 859 36.08 831 35.69 812 35.41 792 35.18 2.700 48.8 65.8 26.2 Sd vf-fg vsshy gld 107AH 3804.65 1180 36.41 2.709 56.9 71.7 20.4 Sd vf·fg cln gld 108BV 3804.80 991 36.16 2.703 52.3 71.7 20.8 Sd vf-fg cln gld Page 2 FINAL ROUTINE CORE ANALYSIS REPORT July 12, 2005 Kerr McGee 011 & Gas Corporation . File No.: HOU-050228 Kigun 01 Date: June 9, 2005 NW Milne Point Analyst(s): RP, MM North Slope, Alaska Cores: Conventional ,nllltUIIStl'rltU CORE ANALYSIS DATA 550 Dsio NCS 1100 Dsio NCS 1650 Dsio NCS 2200 Dsio NCS 2750 Dsio NCS Grain Smpl DEPTH Kair POR Kair POR Kair POR Kair POR Kair POR Density K/Phi Seo Stw No (ft) (mD) (%) (mD) (%) (mD) (%) (mD) (%) (mD) (%) (glee) sqrt (%) (%) LITHOLOGY FLU 110AH 3805.55 287 34.97 2.734 28.6 62.6 30.2 Sd vfg vsshy gld 112AH 3806.50 87.9 32.75 2.727 16.4 33.7 57.8 Sd vf-silt sshy gld 115AH 3807.70 23.9 27.58 2.890 9.3 19.2 73.8 Silt vshy lam(3,4) stks gld 116BV 3807.80 0.988 30.05 2.780 1.8 36.7 55.7 Silt vshy lam(3,4) stks gld 118AH 3808.50 525 35.53 485 34.92 478 34.50 453 34.22 442 33.96 2.697 37.3 57.9 36.1 Sd vfg vsshy gld 120AH 3809.40 2.84 27.55 2.739 3.2 22.7 68.5 Shale slty lam(3,4) matt gld 123AH 3810.70 119 31.76 2.713 19.4 61.6 31.3 Sd vfg sshy gld 124BV 3810.80 375 35.23 2.693 32.6 62.9 31.1 Sd vfg sshy gld 126AH 3811.50 397 34.64 2.721 33.9 57.4 35.2 Sd vfg vsshy gld 128AH 3812.30 12.5 30.05 2.751 6.4 26.8 66.9 Shale slty lam(4) syks gld 131AH 3813.20 8.05 27.75 3.12 26.89 1.78 26.30 1.41 25.93 1.17 25.60 2.737 3.4 7.4 87.1 Silt vshy lam(3,4) syks gld 132BV 3813.30 0.946 27.37 2.726 1.9 20.7 73.1 Silt vshy lam(3,4) syks gld Page 3 FINAL ROUTINE CORE ANALYSIS REPORT July 12, 2005 Kerr McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska Â I'tTIOUVMSEUICr5: File No.: HOU-050228 Date: June 9, 2005 Analyst(s): RP, MM Cores: Conventional ANAL YSIS PROTOCOL Sample Preparation 1.5" (AH & BV samples) diameter plugs were drilled with liquid nitrogen and trimmed into right cylinders with a diamond-bladed trim saw. The samples were encapsulated in teflon tape, nickel foil, and stainless steel screens. All sample trims were archived. Core Extraction Plugs selected for routine core analysis were placed in Dean Stark equipment using toluene, followed by Soxhlet extraction cycling between a methylene chloride I methanol (75:25) azeotrope and methanol. Sample Drvina Samples were oven dried at 2400 F to weight equilibrium (+/- 0.001 g). Porosity Porosity was determined using Boyle's Law technique by measuring grain volume at ambient conditions & pore volume at indicated net confining stresses (NCS) Grain Density Grain density values were calculated by direct measurement of grain yolume and weight on dried plug samples. Grain volume was measured by Boyle's Law technique. Permeabiiity Permeability to air was measured on each sample using steady-state method at indicated NCS. Fluid Saturations Fluid saturations were determined by the Dean Stark technique using the following fluid propreties: Brine 1.014 glee Oil 0.876 glee Page 4 FINAL ROUTINE CORE ANALYSIS REPORT July 12, 2005 Kerr McGee 011 & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska DESCRIPTION CODE KEY AND ABBREVIATIONS LITHOLOGY FLUORESCENCE INTENSITY Anhy Anhydrite ev even bt bright egl Conglomerate stk streaks( ed) ft faint Dol Dolomite spt spots(ed) dl dull Glauc Glauconite mott mottled vft very faint H Halite Ug Ugnite ~ MODIRERS Ls Umestone b blue u unconsolidated Pyr Pyrite bow blue-white vs very slightly Sd Sand bz bronze s slightly Sh Shale gld gold m moderately Sit Silt W white mw moderately well Sf Shell Fragments y yellow v very w well GRAIN SIZE OTHER vfg very fine grain calc calcareous ha high angle fg fine grain cln clean hd hard mg medium grain carb carbonaceous lam laminated(ion) cg coarse grain cem cementation mic micaceous con consolidated ms mudshot dns dense shy shaley flu fluorescence slty silty foss fossiliferous tr trace fre fractured(s) vug vuggy fl flushed vt vertical Â 'nIlLI:¥"st1VICU OTHER ABBREVIA TlONS POR porosity, % Sco core oil saturation, % pore volume Stw total water saturation, % pore volume Vsh volume of shale, % bulk volume Cs surface area (m~/cc) Mean mean grain size. microns Page 5 File No.: HOU-050228 Date: June 9, 2005 Analyst(s): RP, MM Cores: Conventional IINTERLAMsm THIN BED SAMPLE DESCRIPTION I TYPE 1 SHALE LAMINATIONS < 1 mm TYPE 3 SHALE LAMINATIONS 5-10 mm FINAL ROUTINE CORE ANALYSIS REPORT TYPE 2 ~..~... /. ...... ... f··' : . .. ... : . : f.. . . . .. . ., '. , . . : . '. .. .. . . . .. . \ ì:~1 L..'... ........ .. ..........~ . . . . . . ., . . ,.:," SHALE LAMINATIONS 1-5 mm TYPE 4 - - SHALE LAMINATIONS> 10 mm July 12, 2005 Kerr-McGee 011 & Gas Corporation Â File No.: HOU-050228 Kigun 01 Date: April 8, 2005 NW Milne Point Analyst(s): RP, SR North Slope, Alaska Cores: Conventional ,nllllUMSuWIt£S PARTSIZsM ANAL YSIS SMPL DEPTH Kair POR SAND % SILT % CLAY Vsh Cs MEAN NO (ft) (mD)* (%) GRVL VCRS CRS MED FINE VFIN CRS MED FINE VFIN (%) (%) (m2/cc) (µ) LlTHOLOGY* 13AH 3768.70 2.51 23.39 0.0 0.0 0.0 0.0 0.7 4.9 12.9 19.5 21.6 19.5 20.8 81 1.17 14 Shale vslty 17 AH 3770.95 5.42 25.27 0.0 0.0 0.0 0.0 1.9 16.7 23.8 18.1 14.4 12.3 12.8 58 0.78 30 Silt vshy lam(2,3) 19AH 3771.60 0.998 23.83 0.0 0.0 0.0 0.0 1.0 5.9 11.0 18.2 23.1 20.7 20.1 82 1.16 14 Shale slty lam(2,3) 22AH 3772.30 7.71 26.71 0.0 0.0 0.0 0.0 5.9 20.3 20.7 15.8 14.1 11.8 11.4 53 0.71 37 Silt shy lam(3,4) 24AH 3773.50 1.03 23.62 0.0 0.0 0.0 0.0 0.9 11.0 19.1 19.4 18.7 15.9 15.1 69 0.92 22 Shale slty lam(2,3) 27 AH 3774.60 0.657 24.71 0.0 0.0 0.0 0.0 0.0 0.7 10.0 24.6 26.9 20.1 17.6 89 1.09 13 Shale slty lam(2) 30AH 3775.65 0.972 25.31 0.0 0.0 0.0 0.0 0.0 4.6 18.8 24.6 20.4 15.9 15.8 77 0.97 18 Shale slty lam(2,3) 32AH 3776.50 1.16 25.48 0.0 0.0 0.0 0.0 0.0 3.9 18.1 25.2 21.1 16.0 15.8 78 0.97 17 Shale slty lam(2,3) 35AH 3777.70 5.85 23.40 0.0 0.0 0.0 3.0 23.6 22.6 12.2 10.0 9.9 8.9 9.7 39 0.58 71 Sd vfg shy vslty 38AH 3778.40 798 35.60 0.0 0.0 0.0 1.5 33.4 45.5 9.8 2.1 3.7 2.0 2.0 10 0.19 107 Sd vf-fg cln 40AH 3779.50 70.8 31.53 0.0 0.0 0.0 0.1 16.7 38.4 18.1 5.8 7.5 6.7 6.6 27 0.43 67 Sd vfg sshy 43AH 3780.60 110 31.00 0.0 0.0 0.0 0.2 13.2 32.7 19.9 8.5 9.2 8.3 8.1 34 0.52 56 Sd vfg sshy 46AH 3781.65 599 35.33 0.0 0.0 0.0 0.0 18.5 47.3 18.7 3.4 5.4 3.6 3.1 15 0.27 83 Sd vfg vsshy 48AH 3782.50 627 35.63 0.0 0.0 0.0 0.0 20.5 58.7 12.4 1.5 3.6 1.7 1.6 8 0.18 93 Sd vf-fg cln 51 AH 3783.70 713 35.90 0.0 0.0 0.0 0.0 21.1 49.5 17.9 2.2 4.5 2.7 2.1 11 0.21 88 Sd vfg cln 54AH 3784.50 1.94 26.68 0.0 0.0 0.0 0.0 1.9 19.5 27.3 17.6 12.7 10.6 10.4 51 0.68 34 Silt shy 56AH 3785.60 9.79 28.25 0.0 0.0 0.0 0.0 1.2 22.3 35.3 16.9 8.6 8.4 7.3 41 0.53 39 Silt shy 59AH 3786.70 10.1 26.27 0.0 0.0 0.0 0.0 3.3 23.2 27.2 16.0 11.9 9.6 8.8 46 0.60 38 Silt shy lam(3) 62AH 3787.50 2.17 26.25 0.0 0.0 0.0 0.0 3.7 23.5 27.0 15.4 11.7 9.7 9.0 46 0.61 38 Silt shy 64AH 3788.60 1.64 26.39 0.0 0.0 0.0 0.0 4.9 25.8 '27.0 14.4 10.7 8.9 8.3 42 0.57 42 Silt shy 67AH 3789.70 5.47 28.83 0.0 0.0 0.0 0.0 3.9 25.7 29.1 15.1 10.2 8.4 7.6 41 0.54 42 Silt shy 70AH 3790.50 21.8 32.67 0.0 0.0 0.0 0.0 1.3 24.1 36.4 16.4 7.5 7.5 6.8 38 0.49 41 Silt shy 72AH 3791.50 126 32.58 0.0 0.0 0.0 0.0 11.2 43.8 25.4 5.0 6.0 4.8 3.8 20 0.32 69 Sd vfg vsshy 75AH 3792.25 284 33.47 0.0 0.0 0.0 0.0 17.9 50.8 20.6 1.4 4.2 2.9 2.3 11 0.23 84 Sd vfg cln 78AH 3793.50 5.21 31.19 0.0 0.0 0.0 0.0 1.1 12.3 23.7 21.3 16.4 12.8 12.3 63 0.79 26 Silt vshy lam (3,4) Page 6 FINAL ROUTINE CORE ANALYSIS REPORT July 12, 2005 Kerr-McGee 011 & Gas Corporation Â File No.: HOU-050228 Kigun 01 Date: April 8, 2005 NW Milne Point Analyst(s): RP, SR North Slope, Alaska Cores: Conventional ,nlOUUMUlmu PARTSIZsM ANAL YSIS SMPL DEPTH Kair POR SAND % SILT % CLAY Vsh Cs MEAN NO (ft) (mD)* (%) GRVL VCRS CRS MED FINE VFIN CRS MED FINE VFIN (%) (%) (m2/cc) (µ) LlTHOLOGY* 80AH 3794.60 1.00 8.46 0.0 0.0 0.0 0.0 1.0 11.0 21.5 20.7 16.8 13.9 15.1 67 0.91 23 Silt vshy 83AH 3795.70 90.0 28.82 0.0 0.0 0.0 0.4 20.3 37.5 15.6 6.4 7.6 5.7 6.5 26 0.44 72 Sd vfg sshy 86AH 3796.40 834 35.00 0.0 0.0 0.0 1.7 31.8 42.3 11.1 3.3 4.3 2.7 2.8 13 0.23 103 Sd vf-fg cln 88AH 3797.70 1150 35.37 0.0 0.0 0.0 0.3 26.0 45.3 11.9 3.5 5.6 3.6 3.8 17 0.29 92 Sd vf-fg vsshy 91 AH 3798.40 1020 35.80 0.0 0.0 0.0 0.3 25.8 45.9 12.1 3.4 5.5 3.5 3.6 16 0.28 92 Sd vf-fg vsshy 94AH 3799.40 933 35.54 0.0 0.0 0.0 0.2 22.6 42.4 14.0 4.9 6.6 4.6 4.7 21 0.34 83 Sd vfg vsshy 96AH 3800.50 358 34.57 0.0 0.0 0.0 0.1 19.9 42.4 15.6 5.1 6.9 4.9 5.1 22 0.36 78 Sd vfg vsshy 99AH 3801.70 813 35.94 0.0 0.0 0.0 0.2 27.4 53.9 7.7 2.2 4.2 2.1 2.3 11 0.20 100 Sd vf-fg cln 102 AH 3802.65 633 34.49 0.0 0.0 0.0 0.7 32.0 48.7 7.8 2.2 4.1 2.2 2.3 11 0.20 105 Sd vf-fg cln 104 AH 3803.50 859 36.08 0.0 0.0 0.0 0.2 24.0 46.0 14.5 3.3 5.3 3.4 3.3 15 0.27 90 Sd vf-fg vsshy 107 AH 3804.65 1180 36.41 0.0 0.0 0.0 0.6 29.0 46.9 11.4 2.3 4.5 2.7 2.8 12 0.23 99 Sd vf-fg cln 110 AH 3805.55 287 34.97 0.0 0.0 0.0 0.0 13.6 43.1 21.7 5.4 6.8 5.0 4.4 22 0.34 70 Sd vfg vsshy 112 AH 3806.50 87.9 32.75 0.0 0.0 0.0 0.0 6.9 34.5 26.1 8.6 8.9 7.9 7.1 32 0.49 51 Sd vf-silt sshy 115 AH 3807.70 23.9 27.58 0.0 0.0 0.0 0.0 2.4 19.5 21.0 12.9 15.4 14.7 14.1 57 0.85 32 Silt vshy lam(3,4) 118 AH 3808.50 485 34.92 0.0 0.0 0.0 0.0 17.6 43.0 19.7 4.7 6.1 4.6 4.2 20 0.33 77 Sd vfg vsshy 120 AH 3809.40 2.84 27.55 0.0 0.0 0.0 0.0 0.0 7.7 22.9 25.8 18.6 12.8 12.0 69 0.80 22 Shale slty lam(3,4) 123 AH 3810.70 119 31.76 0.0 0.0 0.0 0.1 12.6 31.2 21.5 12.8 9.1 6.5 6.2 35 0.45 57 Sd vfg sshy 126 AH 3811.50 397 34.64 0.0 0.0 0.0 0.1 15.5 39.9 22.2 6.6 6.4 5.0 4.2 22 0.34 70 Sd vfg vsshy 128 AH 3812.30 12.5 30.05 0.0 0.0 0.0 0.0 0.0 5.5 17.9 24.3 21.0 15.9 15.4 77 0.95 18 Shale slty lam(4) 131 AH 3813.20 3.12 26.89 0.0 0.0 0.0 0.0 3.1 12.7 19.5 20.7 18.0 13.3 12.7 65 0.81 26 Silt vshy lam(3,4) Footnotes: . Lithology determined using laser particle size distribution. Page 7 FINAL ROUTINE CORE ANALYSIS REPORT July 12, 2005 Kerr-McGee 011 & Gas Corporation A, FileNo. : HOU-050228 Kigun 01 Date: April 8. 2005 NW Milne Point Depth : 3768.70 t:ore lBb Sample: 13AH _cst..... am-.-.- EXTENDED RANGE PARTS/2SAf ANAL YS/S Laser Partslz om Distribution 25 ~i~~Jæ - , · bMt . 100 · · · · · ~- : it: ~ · · · · -:---- . ~--.- · 20 -------&--- --- -------.---- 80 · ~ · · @) · §t · ~ · · ~ · · ~ · ~ 0 · · · c ";:15 · · . . -----~- 60 3 -.........----------.-------- -....--.~ ---_.--------.--~---_.- u · · c c · · i CD · · :I · · <' ~ 10 · · 4Q..!. · " · £ II.. · · · · 5 · 20 . - ------ · · p-df · · · 0 ......... ... '- . . ..- - 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBunON SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1575 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAVEL 10 -1.00 0.0181 2.??oo 0.0 0.0 0.0 12 .0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 .0.50 0.0555 1.4100 0.0 0.0 16 .0.25 0.0469 1.1900 0.0 0.0 5 0.0659 0.0026 3.9243 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0471 0.0019 4.4070 20 025 0.0335 0.8500 0.0 0.0 18 0.0348 0.0014 4.8431 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0243 0.0010 5.3621 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0106 0.0004 6.5531 CASSO 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0045 0.0002 7.7803 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0032 0.0001 82852 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0024 0.0001 8.7271 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0017 0.00()1 92100 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 02100 0.0 0.0 80 2.50 0.0070 0.1770 0.1 0.1 FINE 100 2.75 0.0058 0.1490 02 0.3 SURFACEAREA(mA~~): 1.1702 SAND 120 3.00 0.0049 0.1250 0.4 0.7 0.7 140 3.25 0.0041 0.1050 0.6 1.4 170 3.50 0.0035 0.0680 1.0 2.3 VFINE 200 3.75 0.0029 0.0740 1.4 3.7 STD DEVIATION (mm) : 0.0158 SAND 230 4.00 0.0024 0.0620 1.9 4.9 5.6 270 425 0.0021 0.0530 2.4 8.1 325 4.50 0.0017 0.0440 3.0 11.0 CAS 400 4.75 0.0015 0.0370 3.5 14.6 STD DEVIATION (Inches) : 0.0006 SILT 500 5.00 0.0014 0.0310 4.0 12.9 18.6 525 0.0010 0.0260 4.4 23.0 5.50 0.0009 0.0220 4.8 27.8 GRAVEL PACK : NlA MED 5.75 0.0007 0.0190 5.1 32.8 SILT 6.00 0.0006 0.0160 5.2 19.5 38.1 625 0.0005 0.0130 5.4 43.4 6.50 0.0004 0.0110 5.4 48.9 TRASK" FOlK- MOMENT"" FINE 6.75 0.0003 0.0093 5.4 54.3 SILT 7.00 0.0003 0.0078 5.4 21.6 59.6 MEAN 0.0144 6.5606 6.6781 7.25 0.0002 0.0065 5.2 84.9 MEDIAN 0.0106 6.5537 6.5537 7.50 0.0002 0.0055 5.0 69.9 SORTING 2.3119 1.6614 1.6017 VFINE 7.75 0.0002 0.0046 4.8 74.7 SKEWNESS 0.9760 0.0056 .0.0498 SILT 8.00 0.0001 0.0039 4.5 19.5 79.2 KURTOSIS 0.2207 0.8958 2.2782 825 0.0001 0.0033 4.1 83.3 8.50 0.0001 0.0026 3.8 87.1 8.75 0.0001 0.0023 3.3 90.4 9.00 0.??oo 0.0019 2.9 93.3 9.25 0.??oo 0.0016 2.4 95.7 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 1.9 97.6 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 1.6 992 CLAY 10.00 0.??oo 0.0010 0.8 20.8 100.0 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point ~ ;: 15 I.) c GI ::I 110 I&. GRAVEl VCRS so CAS so MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT ClAY A\ Wre LaI:Í .ar__'~ FileNo. : Date: Depth : Sample: HOU-050228 April 8, 2005 3770.95 17 AH EXTENDED RANGE PARTS/ZSM ANAL YS/S Laser Partslz - Distribution 25 kMt ~.. 100 :---- 80 k~~J~~ ~~ ~~ ~~~ · ~ . ~. . -:-_~___:_~__: I : _~_.__.__ __~____~__ :êO:@): : · ~ . nn· . -(3-1..::1- '. · . . . __._____-- -------r------- -.-.......-----'_____.----...------ · . · . · . · . · . ------------ . · . · . · . · . · . · - · · · · · · 20 :~ -.------- . - ---- : §J ¡~ ------.----- · · · · · -------- o c --- 60 ~ i i 40-- £ 5 20 JUUW llli.-Jl.I.. 0 0.001 o 10 .... ... . . . 0.1 Particle Diameter (mm) 0.01 GRAIN SIZE DISTRIBUTION SORßNG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15/5 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -125 0.0937 2.3600 0.0 0.0 PERCENTILES: 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -025 0.0469 1.1900 0.0 0.0 5 0.1023 0.0040 32893 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0825 0.0032 3.5988 20 0.25 0.0335 0.8500 0.0 0.0 16 0.0675 0.0027 3.8894 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0525 0.0)21 4.2511 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0238 0.0009 5.3903 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0078 0.0003 7.0094 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0047 0.0002 7.7280 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0033 0.0001 8.2624 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0021 0.0001 8.8738 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.0 0.0 80 2.50 0.0070 0.1170 0.0 0.0 100 2.75 0.0058 0.1490 0.5 0.5 SURFACE AREA (1II"2Icc): 0.7815 120 3.00 0.0049 0.1250 1.4 1.9 1.9 140 3.25 0.0041 0.1050 2.5 4.4 170 3.50 0.0035 0.0880 3.7 8.1 200 3.75 0.0029 0.0740 4.8 12.9 STD DEVIATION (nn) : 0.0314 230 4.00 0.0024 0.0620 5.6 16.7 18.6 270 425 0.0021 0.0530 6.1 24.7 325 4.50 0.0017 0.0440 6.2 30.8 400 4.75 0.0015 0.0370 6.0 36.8 STD DEVIATION (inches) : 0.0012 500 5.00 0.0014 0.0310 5.6 23.8 42.4 5.25 0.0010 0.0260 5.1 47.5 5.50 0.0009 0.0220 4.7 52.1 GRAVEL PACK : NIA 5.75 0.0007 0.0190 4.3 56.4 6.00 0.0006 0.0180 4.0 18.1 60.5 6.25 0.0005 0.0130 3.8 64.3 6.50 0.0004 0.0110 3.7 67.9 TRASK" FOLK- MOMENT- 6.75 0.0003 0.0093 3.5 71.5 7.00 0.0003 0.0078 3.4 14.4 74.9 MEAN 0.0301 5.6692 5.8139 7.25 0.0002 0.0065 3.3 782 MEDIAN 0.0238 5.3903 5.3903 7.50 0.0002 0.0055 3.2 61.4 SORTING 2.6012 1.8058 1.7422 7.75 0.0002 0.0046 3.0 84.4 SKEWNESS 0.7170 0.2326 0.4328 6.00 0.0001 0.0039 2.8 12.3 872 KURTOSIS 0.2823 0.6298 2.2098 825 0.0001 0.0033 2.6 89.8 8.50 0.0001 0.0028 2.4 92.2 8.75 0.0001 0.0023 2.1 942 9.00 0.??oo 0.0019 1.8 96.0 9.25 0.??oo 0.0016 1.5 97.5 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 1.2 98.7 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.9 99.6 10.00 0.??oo 0.0010 0.4 12.8 100.0 Kerr-McGee Oil & Gas Corporation ~\ File No.: HOU-050228 Kigun 01 Date: April 8, 2005 NW Milne Point Depth : 3771.60 Core LaI:Í -~ Sample: 19AH EXTENDED RANGE PARTS/2SM ANAL YS/S Laser Partslz am Distribution 25 ~~~J~ - , · ~ bMt . . 100 · · · · · n~ "(9 · ~ · · · ~ · ~ 20 ---"- · _n___^___ 80 · @Jt · · et · ~ · · ~ · · ~ · ~ · ~ · 0 · · · c ';: 15 · · · 60 3 · . -- --------------- · (,) · · · c c · · · i CD · · · =' · · · i" ~ 10 · · · ------------- ----------~_.----._---- _________. ___ m_ .------------.---'"- .--"-- 40~ · · · · · II. · · · · · · · · · · ...... · · · · · · · · · · 5 · · · · Drill" ..... · . · · ---------------.-- JB- - 20 · · · · · · · · · · · · · · · · ~o · · · · YL 0 ·········-···~··C··- . 10 0.1 0.01 0.001 Particle Diameter (mm) GRAlN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1575 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAVEL 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.0737 0.0029 3.7628 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0499 0.0020 4.3240 20 0.25 0.0335 0.8500 0.0 0.0 18 0.0344 0.0014 4.8604 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0230 0.0009 5.4441 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0103 0.0004 6.6033 CAS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0048 0.0002 7.7487 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0033 0.0001 8.2390 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0025 0.0001 8.6665 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0017 0.0001 9.1635 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.0 0.0 80 2.50 0.0070 0.1770 0.0 0.0 FINE 100 2.75 0.0058 0.1490 0.3 0.3 SURFACE AREA (m^2Icc): 1.1560 SAND 120 3.00 0.0049 0.1250 0.6 1.0 1.0 140 3.25 0.0041 0.1050 1.0 2.0 170 3.50 0.0035 0.0880 1.3 3.3 VFINE 200 3.75 0.0029 0.0740 1.7 4.9 STD DEVIATION (nvn) : 0.0156 SAND 230 4.00 0.0024 0.0620 2.0 5.9 6.9 270 4.25 0.0021 0.0530 2.2 9.1 325 4.50 0.0017 0.0440 2.5 11.7 CAS 400 4.15 0.0015 0.0370 2.9 14.6 STD DEVIATION (Inches) : 0.0006 SILT 500 5.00 0.0014 0.0310 3.3 11.0 17.9 5.25 0.0010 0.0260 3.8 21.7 5.50 0.0009 0.0220 4.3 26.1 GRAVEL PACK : NlA MED 5.75 0.0007 0.0190 4.8 30.9 SILT 6.00 0.0006 0.0160 5.3 18.2 38.1 6.25 0.0005 0.0130 5.6 41.7 6.50 0.0004 0.0110 5.8 47.5 TRASK' FOLK- MOMENT'" FINE 6.75 0.0003 0.0093 5.9 53.4 SILT 7.00 0.0003 0.0078 5.8 23.1 59.2 MEAN 0.0138 6.5676 6.6800 7.25 0.0002 0.0065 5.6 64.9 MEDIAN 0.0103 6.6033 6.6033 7.50 0.0002 0.0055 5.4 70.3 SORTING 2.2227 1.6629 1.6008 VFINE 7.75 0.0002 0.0048 5.0 75.3 SKEWNESS 1.0095 -0.0418 -0.1560 SIlT 8.00 0.0001 0.0039 4.6 20.7 79.9 KURTOSIS 0.1930 0.9604 2.3948 8.25 0.0001 0.0033 4.2 84.1 8.50 0.0001 0.0028 3.7 87.8 8.75 0.0001 0.0023 3.3 91.0 9.00 0.??oo 0.0019 2.8 93.8 9.25 0.??oo 0.0016 2.3 96.1 . COMPUTED USING MilliMETER VAlUES 9.50 0.??oo 0.0014 1.8 97.9 - COMPUTED USING PHI VAlUES 9.75 0.??oo 0.0012 1.4 99.3 ClAY 10.00 0.??oo 0.0010 0.7 20.1 100.0 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point ~ ';: 15 u c III :s [ 10 II. GRAVEL VCRS so CASSO MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT CLAY 25 20 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 A\ Core Lab 101_ ~ EXTENDED RANGE PARTSIZSM ANAL YSIS Laser Partslz.... Distribution bõ~t -- ~..--~-_.._.,,~--.-- GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -6.75 -6.50 -6.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15(:' 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo ~JJœLl~ i u~j~.. : t9»>: ~ @I : r.::A : : ~: ; ~ : n~ : Ic;::::::.". -6at.:..::J. · . . . . -.-------~----~..........---~--.-- . . · . . . . · . . . . · . . . . · . I . . · . ,. . . ____________~ __________-L.__ ..L___ -L~..________~" ____~._ iii . . . . . . · . . . . . . · . . . . . . · . . . . . .. . . . . . · . . . . . .... L..L .[..L~~ t I! 11I1~Ur - - "-JI."_~ 0.1 0.01 0.001 Particle Diameter (mm) MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 FileNo. : Date: Depth : Sample: HOU-050228 April 8. 2005 3772.30 22AH _ . . 100 80 g 60g i i 40...... £. SEP SOR11NG PARAMETERS SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.9 1.9 2.9 4.0 4.9 5.6 5.8 5.7 5.4 5.0 4.6 4.2 4.0 3.8 3.7 3.7 3.6 3.5 3.4 3.2 3.1 2.9 2.6 2.4 2.2 1.9 1.6 1.3 1.0 0.7 0.3 CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 1.1 3.0 5.9 9.9 14.9 20.4 26.2 32.0 37.4 42.4 46.9 51.2 55.2 59.0 62.7 66.4 70.0 73.5 76.8 80.1 83.1 86.0 86.6 91.0 93.2 95.1 96.7 98.0 98.9 99.7 100.0 0.0366 0.0274 2.7371 0.7419 0.2763 PERCENTILES: 0.0 mm 0.0 5 10 16 25 50 75 84 90 95 0.1325 0.1048 0.0851 0.0&45 0.0274 0.0086 0.0052 0.0038 0.0023 0.0 0.0 SURFACE AREA (m^2Icc): 5.9 STD DEVIATION (mm) : 20.3 STD DEVIATION (Inches) : 20.7 GRAVEL PACK : 15.8 TRASK' MEAN MEDIAN SORTING SKEWNESS KURTOSIS 14.1 11.8 Inches 0.0052 0.0041 0.0034 0.0025 0.0011 0.0003 0.0002 0.0001 0.0001 FOLK" 5.4424 5.1911 1.8906 0.2034 0.8227 phi 2.9156 3.2548 3.5542 3.9538 5.1911 6.8591 7.5618 8.1350 8.7481 0.7123 0.0400 0.0016 NIA MOMENT*" 5.5889 5.1911 1.8289 0.3925 2.1706 11.4 . COMPUTED USING MilliMETER VAlUES - COMPUTED USING PHI VAlUES Kerr-McGee 011 & Gas Corporation A\ File No.: HOU-050228 Kigun 01 Date: April 8, 2005 NW Milne Point Depth : 3773.50 Con! LJm Sample: 24AH .m.....~ EXTENDED RANGE PARTSIZ 8M ANAL YSIS Laser Partslz - Distribution 25 ~~J~- ~ bMt ~.. 100 ~ · ~ . y · 20 ~~ ---.-.----------- 80 @II ~ ~ 0 ~ ~ c ;: 15 --60 3 u c c ã CD :I <" f:T 40.!. I!! 10 u. ~ 5 ---~---.~--- Jlllr iU[II.... 20 · · · · 0 ..... ....... ,-..,¡...I"". 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORßNG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1515 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAve. 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.0868 0.0034 3.5267 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0677 0.0027 3.8846 20 0.25 0.0335 0.8500 0.0 0.0 1& 0.0537 0.0021 4.2189 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0385 0.0015 4.6988 30 0.75 0.023& 0.6000 0.0 0.0 50 0.0162 0.000& 5.9450 CAS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0061 o.~ 7.3539 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0041 0.0002 7.9358 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0030 0.0001 8.3960 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0020 0.0001 8.9729 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.0 0.0 80 2.50 0.0070 0.1770 0.0 0.0 FINE 100 2.75 0.0058 0.1490 0.2 0.2 SURFACE AREA (m^2Icc): 0.9182 SAND 120 3.00 0.0049 0.1250 0.7 0.9 0.9 140 3.25 0.0041 0.1050 1.5 2.4 170 3.50 0.0035 0.0880 2.4 4.7 VFINE 200 3.75 0.0029 0.0740 3.2 7.9 STD DEVIATION (nun): 0.0248 SAND 230 4.00 0.0024 0.0620 3.9 11.0 11.9 270 4.25 0.0021 0.0530 4.5 16.3 325 4.50 0.0017 0.0440 4.8 21.1 CAS 400 4.75 0.0015 0.0370 4.9 26.1 STD DEVIATION (IncheS) : 0.0010 SILT 500 5.00 0.0014 0.0310 4.9 19.1 31.0 5.25 0.0010 0.0260 4.9 35.9 5.50 0.0009 0.0220 4.9 40.8 GRAVEL PACK : NlA MED 5.75 0.0007 0.0190 4.8 45.6 SILT 6.00 0.000& 0.0160 4.8 19.4 50.4 6.25 0.0005 0.0130 4.8 55.1 6.50 0.0004 0.0110 4.7 59.9 TRASK· FOLK" MOMENT"" FINE 6.75 0.0003 0.0093 4.7 84.5 SILT 7.00 0.0003 0.0078 4.5 16.7 69.0 MEAN 0.0223 6.0332 6.1923 7.25 0.0002 0.0065 4.4 73.4 MEDIAN 0.0162 5.9450 5.9450 7.50 0.0002 0.0065 4.1 77.5 SORTING 2.5097 1.7544 1.6797 VFINE 7.75 0.0002 0.0046 3.9 61.4 SKEWNESS 0.8934 0.0916 0.1852 SILT 8.00 0.0001 0.0039 3.5 15.9 84.9 KURTOSIS 0.2502 0.8407 2.1385 8.25 0.0001 0.0033 3.2 88.1 8.50 0.0001 0.0028 2.8 91.0 8.75 0.0001 0.0023 2.4 93.4 9.00 0.??oo 0.0019 2.1 95.5 9.25 0.??oo 0.0016 1.7 97.1 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 1.3 98.4 .. COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 1.0 99.5 ClAY 10.00 0.??oo 0.0010 0.5 15.1 100.0 Kerr-McGee 011 & Gas Corporation ¿ File No.: HOU-050228 Kigun 01 ~\ Date: April 8. 2005 NW Milne Point Depth : 3774.60 £:ore llII:Í .ar....~ Sample: 27AH EXTENDED RANGE PARTS/ZSM ANAL YS/S Laser Partslz om Distribution 25 ~~lJ~~ ~ bõ~t ~"'00 :~ ~ ~ : y 20 --- (¥j ~~: /- 80 · @ìI · @t (3) · ~ ~ · ~ ~ 0 · c "15 · 60 3 , ~ · c c · i CD · ~ · <" r10 · CD --~---- 40-- IL · ~ · · · · 5 · · -~---- · . · . · · · 0 .........-.. 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15/~ 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAVel 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.0413 0.0016 4.5993 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0322 0.0013 4.9586 20 025 0.0335 0.8500 0.0 0.0 16 0.0259 0.0010 5.2720 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0205 0.0008 5.6051 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0109 0.0004 6.5248 CAS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0052 0.0002 7.5904 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0037 0.0001 8.0954 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0027 0.0001 8.5111 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0019 0.0001 9.0427 SAND 60 2.00 0.0098 02500 0.0 0.0 0.0 70 225 0.0083 0.2100 0.0 0.0 80 2.50 0.0070 0.1770 0.0 0.0 FINE 100 2.75 0.0058 0.1490 0.0 0.0 SURFACE AREA (m"2Jcc): 1.0929 SAND 120 3.00 0.0049 0.1250 0.0 0.0 0.0 140 3.25 0.0041 0.1050 0.0 0.0 170 3.50 0.0035 0.0880 0.0 0.0 VFINE 200 3.75 0.0029 0.0740 02 02 STD DEVIATION (nvn) : 0.0111 SAND 230 4.00 0.0024 0.0620 0.6 0.7 0.7 270 4.25 0.0021 0.0530 12 1.9 325 4.50 0.0017 0.0440 2.0 3.9 CRS 400 4.75 0.0015 0.0370 2.9 6.8 STD DEVIATION (Inches) : 0.0004 SILT 500 5.00 0.0014 0.0310 4.0 10.0 10.8 5.25 0.0010 0.0260 5.0 15.8 5.50 0.0009 0.0220 6.0 21.8 GRAVEL PACK : NlA MED 5.75 0.0007 0.0190 6.6 28.4 SILT 6.00 0.0006 0.0160 7.0 24.6 35.4 625 0.0005 0.0130 7.1 42.5 6.50 0.0004 0.0110 6.9 49.5 TRASK· FOLK- MOMENT"" FINE 6.75 0.0003 0.0093 6.6 56.1 SILT 7.00 0.0003 0.0078 6.2 26.9 62.3 MEAN 0.0129 6.6307 6.7606 7.25 0.0002 0.0065 5.8 68.1 MEDIAN 0.0109 6.5248 6.5248 7.50 0.0002 0.0055 5.3 73.3 SORTING 1.9898 1.3791 1.3366 VFINE 7.75 0.0002 0.0046 4.8 78.1 SKEWNESS 0.9039 0.1229 0.2549 SILT 8.00 0.0001 0.0039 4.3 20.1 82.4 KURTOSIS 0.2610 0.9173 2.3650 8.25 0.0001 0.0033 3.8 86.3 8.50 0.0001 0.0028 3.4 89.7 8.75 0.0001 0.0023 2.9 92.6 9.00 0.??oo 0.0019 2.4 95.0 9.25 0.??oo 0.0016 1.9 96.9 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 1.5 98.4 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 1.1 99.5 ClAY 10.00 0.??oo 0.0010 0.5 17.6 100.0 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ ......15 ~ c II :;, ~ 10 II. GRAvel VCRS so CRS so MED SAND FINE SAND VFINE SAND CAS SIlT MED SIlT FINE SILT VFINE SILT ClAY ~~J®~ 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 ..... ~\ Core~ IIISI_~ EXTENDED RANGE PARTSIZSII ANAL YSIS ... " · · · · · ~ (9J : ~~ " · · · · · " Laser Partslz.... Distribution ~ ~(òfl) @) ~ ~ @'j @t ~ ~ -~.._-_._- ... kõ~t File No.: Date: Depth : Sample: HOU-050228 April 8, 2005 3775.65 30AH . . 100 80 o c --- 60 ª Ii i" 401 ...[..<~.df~ 0.1 Particle Diameter (mm) ]ILUrJl~~ GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 025 0.50 0.75 1.00 125 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 425 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.1575 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3600 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 02500 02100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.7 1.4 2.4 3.4 4.4 5.2 5.8 62 6.3 6.2 5.9 5.6 5.2 4.9 4.6 4.4 4.1 3.8 3.6 3.3 2.9 2.6 2.2 1.8 1.4 1.1 0.6 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.7 22 4.6 7.9 12.3 17.5 23.4 29.6 35.9 42.0 48.0 53.5 58.8 63.7 68.3 72.7 76.8 80.6 84.2 87.4 90.4 92.9 95.1 96.9 98.3 99.4 100.0 0.0 0.0 0.0 0.0 0.0 4.6 18.8 24.6 20.4 15.9 15.8 PERCENTILES: 5 10 16 25 50 75 84 90 95 0.01 0.001 SORßNG PARAMETERS mm 0.0608 0.0488 0.0391 0.0297 0.0149 0.0059 0.0039 0.0029 0.0019 SURFACE AREA (m^2Icc): STD DEVIATION (mm): STD DEVIATION (Inches): GRAVEL PACK : MEAN MEDIAN SORTING SKEWNESS KURTOSIS TRASK" 0.0178 0.0149 2.2369 0.7932 0.2587 Inches 0.0024 0.0019 0.0015 0.0012 0.0006 0.0002 0.0002 0.0001 0.0001 FOLK- 6.2452 6.0683 1.5826 0.1729 0.8790 phi 4.0396 4.3578 4.6781 5.0739 6.0683 7.3968 7.9891 8.4480 9.0215 0.9664 0.0176 0.0007 NIA MOMENT*" 6.3932 6.0683 1.5221 0.3212 2.2525 . COMPUTED USING MILLIMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point A\ Con!I..rJb ...._~ FileNo. : Date: Depth : Sample: HOU-050228 April 8, 2005 3776.50 32AH EXTENDED RANGE PARTS/ZSM ANAL YS/S Laser Partslz.... Distribution 25 ~~J~~ "f' I bõ~t . . 100 · ,. . · ,. . · ~. . '@ '''(9 · . . 20 1'~ ~ i ~ -------_..'"-~- 80 ¡: êJ 0 ~ c ;: 15 · ---60 3 u · c c · ¡ GI · :I · ¡ ~ 10 · · 40...... II- · £. · · · · · ~tf 1t.ijrI-lliu- ~ 5 · · _.~..........--------- · · · · · · · · · · · 0 ........ .. . ........~~ 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 ·2.00 0.15/5 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAVel 10 ·1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -025 0.0469 1.1900 0.0 0.0 5 0.0588 0.0023 4.0884 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0465 0.0018 4.4272 20 025 0.0335 0.8500 0.0 0.0 16 0.0373 0.0015 4.7464 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0286 0.0011 5.1302 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0145 0.0006 6. 1 065 CRS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0059 0.0002 7.3978 40 125 0.0165 0.4200 0.0 0.0 84 0.0039 0.0002 7.9867 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0029 0.0001 8.4460 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0019 0.0001 9.0216 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 225 0.0083 02100 0.0 0.0 80 2.50 0.0070 0.1770 0.0 0.0 FINE 100 2.75 0.0058 0.1490 0.0 0.0 SURFACE AREA (m^2Icc): 0.9724 SAND 120 3.00 0.0049 0.1250 0.0 0.0 0.0 140 325 0.0041 0.1050 0.1 0.1 170 3.50 0.0035 0.0880 0.5 0.5 VFINE 200 3.75 0.0029 0.0740 12 1.8 STD DEVIATION (mrn) : 0.0167 SAND 230 4.00 0.0024 0.0620 2.1 3.9 3.9 270 4.25 0.0021 0.0530 3.1 7.0 325 4.50 0.0017 0.0440 4.1 11.1 CRS 400 4.75 0.0015 0.0370 5.0 162 STD DEVIATION (Inches) : 0.0007 SILT 500 5.00 0.0014 0.0310 5.8 18.1 22.0 5.25 0.0010 0.0280 82 282 5.50 0.0009 0.0220 6.4 34.6 GRAVEL PACK : NlA MED 5.75 0.0007 0.0190 6.4 41.0 SILT 6.00 0.0006 0.0160 6.1 25.2 47.1 625 0.0005 0.0130 5.8 52.9 6.50 0.0004 0.0110 5.4 58.4 TRASK' FOLK" MOMENT*' FINE 6.75 0.0003 0.0093 5.1 63.5 SILT 7.00 0.0003 0.0078 4.7 21.1 68.2 MEAN 0.0172 6.2799 6.4233 725 0.0002 0.0065 4.4 72.6 MEDIAN 0.0145 6.1065 6.1065 7.50 0.0002 0.0055 4.2 76.8 SORTING 2.1943 1.5575 1.4989 VFINE 7.75 0.0002 0.0046 3.9 80.6 SKEWNESS 0.8039 0.1712 0.3277 SILT 8.00 0.0001 0.0039 3.6 16.0 84.2 KURTOSIS 0.2594 0.8916 2.2828 8.25 0.0001 0.0033 3.3 87.5 8.50 0.0001 0.0028 2.9 90.4 8.75 0.0001 0.0023 2.6 93.0 9.00 0.??oo 0.0019 22 95.1 9.25 0.??oo 0.0016 1.8 96.9 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 1.4 98.3 .. COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 1.1 99.4 CLAY 10.00 0.??oo 0.0010 0.6 15.8 100.0 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point 25 20 ¡: ;:15 Q ¡ :;, l10 IL GRAvel VCRS so CRS so MED SAND FINE SAND VFINE SAND CRS SILT MED SILT FINE SILT VFINE SILT ClAY k~~J~~ 5 o 10 MESH 5 6 7 6 10 12 14 16 16 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 ~\ Core L8ti ~---- EXTENDED RANGE PARTS/ZSM ANAL YS/S , " · . · . ..i_~_._ : · · · · · · --- '---y---------- ..... Laser Partslz om Distribution " . . . .. . :c¡g:~ Q: --=-@'.L-=-~-- ~- :êI:@) : : ~ . ~ : · . . . . -- ~----..-._---_.__.--.----- . -- ...----------.---.---~- · . . . . · . . . . · . . . · . . . · . . . _..______________.-L-._.___~_______ · . . . · . . . · . . · . . · . . · . . -------------- .. . · . · . · . · . · . êJI ~ bMt FileNo. : Date: Depth : Sample: HOU-050228 April 8. 2005 3777.70 35AH . 100 ~~. · · · · · · ...--- 80 (") c ---- 60 ~ i i 40..... £. · -------------.-- - · · · · · ¡ IlllUlIIUillJ.. II... - ~ 0.001 ...._...~ .w~ 1 ~" i:: l~ 0.1 Particle Diameter (mm) GRAJN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -025 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 225 2.50 2.75 3.00 3.25 3.50 3.75 4.00 425 4.50 4.75 5.00 5.25 5.50 5.75 6.00 625 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 6.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15(1) 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.(0)1 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.8000 0.5000 0.4200 0.3500 0.2970 0.2500 02100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0280 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 2.5 4.3 5.8 6.6 6.9 6.7 6.1 5.3 4.5 3.7 3.1 2.8 2.6 2.5 ,2.5 2.5 2.5 2.5 2.5 2.5 2.4 2.4 2.3 2.2 2.1 1.9 1.8 1.6 1.4 1.1 0.9 0.7 0.3 SEP 0.0 0.0 0.0 3.0 23.6 22.6 12.2 10.0 9.9 8.9 9.7 CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 3.0 7.3 13.1 19.7 26.7 33.4 39.5 44.8 49.3 53.0 56.1 58.9 61.4 63.9 66.4 66.9 71.4 73.9 76.4 78.9 81.3 83.7 86.0 882 90.3 922 94.0 95.6 97.0 98.1 99.0 99.7 100.0 0.01 SORTING PARAMETERS PERCENTILES: 5 10 16 25 50 75 84 90 95 SURFACE AREA (m^2Icc): STD DEVIATION (nvn) : STD DEVIATION (Inches) : GRAVEL PACK : MEAN MEDIAN SORTING SKEWNESS KURTOSIS mm 0.2316 0.1946 0.1647 0.1307 0.0602 0.0121 0.0064 0.0040 0.0025 TRASK' 0.0714 0.0602 3.2822 0.4374 0.3111 Inches 0.0091 0.0077 0.0065 0.0051 0.0024 0.0005 0.0003 0.0002 0.0001 FOLK" 4.6501 4.0534 2.1640 0.3937 0.7817 phi 2.1104 2.3812 2.6025 2.9352 4.0534 6.3646 7.2943 7.9690 8.6510 0.5778 0.0791 0.0031 40160 MOMENT"* 4.8227 4.0534 2.1140 0.6157 2.2103 . COMPUTED USING MilliMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 ~~1Jœ 20 ~ ;:: 15 u ¡ :I l10 II. 5 GRAVEL VCRS so CRS so MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT ClAY ~\ Con! Lab am..... .mwsr..v. FileNo. : Date: Depth : Sample: HQU-050228 April 8. 2005 3778.40 38AH EXTENDED RANGE PARTS/2SM ANAL YS/S Laser Partslz.... Distribution ~ ~ ..... . . .. : -.... ~~t r ~----- . _ _ . .. . . 100 o 10 L~-!i· ~ ~! :@: . @K ê): :~: ~~:: .. . . ~- I · . . :: - ~ -- : t---- ~ --=-----:~~- -t ~ ---------------- · . . . ~... ~¡-. : : : :~. ~ ~ ~ 1: ~-- ~ -t------ ¡ · :.it i h----- · . . . ,; il.,1I · . .';...9' -; .'""1'-11_ rr-rr- . . . . þ . . . . .. ~,r , Q1 0~1 Particle Diameter (mm) o 0.001 ~~ay --80 o c --60~ i i -~- 40-- ~ ---20 ,-, ÿ." GRAIN SIZE DISTRIBUTION SORnNG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1575 4.??oo 0_0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3600 0.0 0.0 PERCENTILES: 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -025 0.0469 1.1900 0.0 0.0 5 02150 0.0085 22118 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1887 0.0074 2.4055 20 0.25 0.0335 0.8500 0.0 0.0 16 0.1672 0.0066 2.5602 25 0.50 0.0280 0.7100 0.0 0.0 25 0.1442 0.0057 2.7935 30 0.75 0.0236 0.6000 0.0 0.0 50 0.1028 0.0040 3.2816 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0699 0.0028 3.8319 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0560 0.0022 4.1596 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0344 0.0014 4.8614 50 1.75 0.0117 0.2970 0.1 0.1 95 0.0097 0.0004 6.6862 60 2.00 0.0098 02500 1.4 1.5 1.5 10 225 0.0083 0.2100 4.0 5.5 80 2.50 0.0010 0.1770 7.0 12.5 100 2.75 0.0058 0.1490 10.0 22.5 SURFACE AREA (m^2Icc) : 0.1880 120 3.00 0.0049 0.1250 12.4 33.4 34.9 140 3.25 0.0041 0.1050 13.4 48.4 170 3.50 0.0035 0.0880 12.9 61.2 200 3.75 0.0028 0.0740 11.0 72.2 STD DEVIATION (mm) : 0.0556 230 4.00 0.0024 0.0620 8.2 45.5 80.4 210 4.25 0.0021 0.0530 5.3 85.7 325 4.50 0.0017 0.0440 2.9 88.6 400 4.75 0.0015 0.0370 12 69.8 STD DEVIATION (Inches): 0.0022 500 5.00 0.0014 0.0310 0.4 9.8 902 5.25 0.0010 0.0260 02 90.4 5.50 0.0009 0.0220 0.4 90.7 GRAVEL PACK : 20140 5.75 0.0007 0.0190 0.7 91.4 6.00 0.0006 0.0160 0.9 2.1 92.3 8.25 0.0005 0.0130 1.0 93.3 6.50 0.0004 0.0110 1.0 94.3 TRASK' FOLK" MOMENT" 6.75 0.0003 0.0093 0.9 952 7.00 0.0003 0.0078 0.8 3.7 96.0 MEAN 0.1071 3.3405 3.6983 7.25 0.0002 0.0065 0.6 96.8 MEDIAN 0.1026 3.2816 3.2816 7.50 0.0002 0.0055 0.5 97.1 SORTING 1.4362 1.0719 1.3163 7.75 0.0002 0.0046 0.4 97.6 SKEWNESS 0.9538 0.3119 2.1118 8.00 0.0001 0.0039 0.4 2.0 98.0 KURTOSIS 0.2407 1.7534 8.0194 8.25 0.0001 0.0033 0.4 98.3 8.50 0.0001 0.0028 0.4 98.7 8.75 0.0001 0.0023 0.3 99.1 9.00 0.??oo 0.0019 0.3 99.4 9.25 0.??oo 0.0016 0.3 99.6 . COMPUTED USING MIWMETER VAlUES 9.50 0.??oo 0.0014 0.2 99.8 - COMPUTED USING PHI VAlUES 9.75 0.??oo 0.0012 0.1 99.9 10.00 0.??oo 0.0010 0.1 2.0 100.0 Kerr-McGee Oil & Gas Corporation ~ FileNo. : HOU-050228 Kigun 01 ~\ Date: April 8. 2005 NW Milne Point Depth : 3779.50 (ire l!II:Ì ttJt.....",.,..... Sample: 40AH EXTENDED RANGE PARTS/2SM ANAL YS/S Laser Partslz am Distribution 25 ~~~J~[ I ~ bõ~~~;·· 100 ~ ~ ~ 20 @Á} . 80 , §J @I ¡: ~ ~ 0 c ';: 15 60 3 CJ c c ã 4D ::J <" ~ 10 -lIT~~ 40· I&. ... . 1 ~ ~ ",,- ~.- 5 1- ~, 20 ..Hi 1 ~,r:-- ---- ¡ ~.I ~ I ' i h¡, Ira -, -- 0 .... ............¡r ¿.~ II' "'_ 1.1..I.II1 Jlllnl~ 8..._- 0 10 1 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DlSTRIBUßON SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15ft) 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTlLI:S: GRAVEL 10 -1.00 0.0781 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1728 0.0068 2.5326 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1471 0.0058 2.7652 20 0.25 0.0335 0.8500 0.0 0.0 16 0.1278 0.0050 2.9685 25 0.50 0.0280 0.7100 0.0 0.0 25 0.1074 0.0042 32187 30 0.75 0.0236 0.8000 0.0 0.0 50 0.0691 0.0027 3.8545 CRS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0258 0.0010 5.2747 40 125 0.0165 0.4200 0.0 0.0 84 0.0100 0.0004 6.6458 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0058 0.0002 7.4686 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0032 0.0001 8.2911 SAND 60 2.00 0.0098 0.2500 0.1 0.1 0.1 70 225 0.0083 02100 1.2 1.3 80 2.50 0.0070 0.1770 3.0 42 FINE 100 2.75 0.0058 0.1490 5.2 9.4 SURFACE AREA (mA2Icc): 0.4343 SAND 120 3.00 0.0049 0.1250 7.4 16.7 16.9 140 3.25 0.0041 0.1050 9.3 26.1 170 3.50 0.0035 0.0880 102 38.3 VFINE 200 3.75 0.0029 0.0740 10.1 46.4 STD DEVIATION (nvn) : 0.0589 SAND 230 4.00 0.0024 0.0620 8.9 38.4 55.3 270 4.25 0.0021 0.0530 7.2 62.5 325 4.50 0.0017 0.0440 5.2 67.7 CAS 400 4.75 0.0015 0.0370 3.5 71.1 STD DEVIATION (Inches) : 0.0023 SILT 500 5.00 0.0014 0.0310 2.2 18.1 73.4 525 0.0010 0.0260 1.6 74.9 5.50 0.0009 0.0220 1.3 76.3 GRAVEL PACK : 40160 MED 5.75 0.0007 0.0190 1.4 77.6 SILT 6.00 0.0006 0.0160 1.6 5.8 792 625 0.0005 0.0130 1.8 81.0 6.50 0.0004 0.0110 1.9 82.8 TRASK" FOLK" MOMENT*" FINE 6.75 0.0003 0.0093 1.9 84.8 SILT 7.00 0.0003 0.0078 1.9 7.5 86.7 MEAN 0.0666 4.4896 4.5982 7.25 0.0002 0.0065 1.8 88.5 MEDIAN 0.0691 3.8545 3.8545 7.50 0.0002 0.0055 1.7 90.3 SORTING 2.0392 1.7918 1.7865 VFINE 7.75 0.0002 0.0046 1.6 91.9 SKEWNESS 0.5806 0.5295 1.1328 SILT 8.00 0.0001 0.0039 1.5 6.7 93.4 KURTOSIS 0.2884 1.1479 3.3057 825 0.0001 0.0033 1.4 94.7 8.50 0.0001 0.0028 1.2 96.0 8.75 0.0001 0.0023 1.1 97.1 9.00 0.??oo 0.0019 0.9 98.0 925 0.??oo 0.0016 0.8 98.8 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 0.6 99.4 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.4 99.8 ClAY 10.00 0.??oo 0.0010 0.2 6.6 100.0 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ ;: 15 Co) ¡ = e 10 II. GRAVEL VCRS so CAS so MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT CLAY 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 80 70 80 100 120 140 170 200 230 270 325 400 500 k~~J(I ;;. ð\ Core lðIi IItsr.....~ EXTENDED RANGE PARTS/Z8M ANAL YS/S Laser Partslz.... Distribution , · · :~ ------~ ~I · . _._~~~~--~ · · · · · · · · · . - ~ i ~l' ~ _I~ ' I If~i .... ...~_......,¡r ~'- ~ @t ~ GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.151t) 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3800 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.8000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0280 0.0220 0.0190 0.0180 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 1.0 2.3 4.0 5.8 7.4 8.5 8.7 8.1 7.0 5.6 4.2 3.1 2.4 2.1 2.0 2.1 2.2 2.3 2.3 2.3 2.3 2.1 2.0 1.9 1.7 1.5 1.3 1.1 0.9 0.7 0.6 0.3 13 @:0 !9J ~ ~ FileNo. : Date: Depth : Sample: HOU-050228 April 8. 2005 3780.60 43AH . _ . . 100 __ kMt~Y 0.1 Particle Diameter (mm) SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 1.2 3.5 7.5 13.3 20.8 29.2 37.9 46.1 53.1 58.6 62.8 66.0 68.4 70.4 72.4 74.5 76.7 79.0 81.3 83.7 65.9 88.1 90.1 91.9 93.6 95.1 96.4 97.6 98.5 99.2 99.7 100.0 0.0 0.0 0.0 0.2 13.2 32.7 19.9 8.5 9.2 8.3 8.1 80 o c: 6O~ ii l 40...... ~ 20 P~IIUlUlll·"-II..__ 0 0.01 0.001 SORTING PARAMETERS PERCENTILES: mm 5 10 16 25 50 75 84 90 95 0.1663 0.1387 0.1178 0.0965 0.0569 0.0153 0.0076 0.0046 0.0028 SURFACE AREA (mA2Icc): STO DEVIATION (mm) : STD DEVIATION (Inches) : GRAVEL PACK: TRASK" MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0559 0.0569 2.5111 0.4554 0.3029 Inches 0.0065 0.0055 0.0046 0.0038 0.0022 0.0006 0.0003 0.0002 0.0001 FOLK" 4.7532 4.1343 1.8787 0.4715 0.9063 phi 2.5877 2.8504 3.0855 3.3734 4.1343 6.0300 7.0399 7.7582 8.4622 0.5200 0.0551 0.0022 40180 MOMENT"" 4.8965 4.1343 1.8545 0.8591 2.7062 . COMPUTED USING MIWMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ ;: 15 u c CD =' ~ 10 I&. GRAVEL VCRS so CRS so MED SAND FINE SAND VFINE SAND CRS SILT MED SILT FINE SILT VFINE SILT CLAY 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 ¿ .:!.\ Core laI:Í uSl"",.m~ EXTENDED RANGE PARTS/28M ANAL YS/S Laser Partslz.... Distribution File No.: Date: Depth : Sample: HOU-050228 April 8. 2005 3781.65 46AH ~. .. _....100 ~- : ~~~y ¡ J n r"' II 'I ~ ~ ~ V ' 0.01 0.1 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 .0.75 .0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 825 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.1575 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0185 0.0136 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0085 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.7 3.0 5.9 8.9 11.4 12.7 12.4 10.8 8.3 5.6 3.2 1.7 0.8 0.6 0.8 1.1 1.3 1.4 1.4 1.3 1.1 0.9 0.8 0.7 0.6 0.5 0.5 0.4 0.4 0.3 0.2 0.1 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.7 3.7 9.6 18.5 29.9 42.6 55.0 65.8 74.1 79.6 82.9 84.5 85.4 86.0 86.8 87.9 89.2 90.6 92.0 93.3 94.4 95.4 96.2 96.9 97.5 98.0 98.5 99.0 99.3 99.6 99.9 100.0 ~~~J~Ll_~. ~ ~.~ ~ ~ j ~ :~ ~:êJ:: :2§J ~ .:[1&: · . I --~-------- : --~ ~ · ... ~ ~-+- I!~ -- : . : : ; ..,.,~ , ~I : : . . . if; t· ~-_..-:.. : : :; .t4 -.:.... : l · . I . ~ .;l ! ,.. · . . . I."tf . ~ II · . . . I ~ ~ ¡. · . . . a..«' ¡ ,. ....;...~_..~_...tr - i1'= 0.0 0.0 0.0 0.0 18.5 47.3 18.7 3.4 5.4 3.6 3.1 r"1 ~-80 o c .~- 60 ~ i <' 40':' £, 20 .. : o 0.001 SORßNG PARAMETERS PERCENTILES: mm 5 10 16 25 50 75 84 90 95 0.1709 0.1479 0.1318 0.1136 0.0797 0.0515 0.0330 0.0119 0.0059 SURFACE AREA (m"2Icc); STD DEVIATION (mm) ; STD DEVIATION (Inches) : GRAVEL PACK: TRASK" MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0826 0.0797 1.4855 0.9220 0.2284 Inches 0.0067 0.0058 0.0052 0.0045 0.0031 0.0020 0.0013 0.0005 0.0002 FOLK" 3.8320 3.6497 1.2358 0.4102 1.7439 phi 2.5487 2.7572 2.9238 3.1374 3.6497 4.2792 4.9224 6.3931 7.4073 0.2706 0.0494 0.0019 20140 MOMENT"" 4.1699 3.6497 1.4462 1.7263 5.7406 . COMPUTED USING MILLIMETER VALUES "COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point A\ ÚJn! LlII:i -- ""'-- File No.: Date: Depth : Sample: HOU-050228 April 8, 2005 3782.50 48AH 25 20 ~ -; 15 u c . ::I ~ 10 II. GRAVEL VCRS so CRS SD MED SAND FINE SAND VFINE SAND CRS SilT MED SIlT FINE SILT VFINE SilT ClAY EXTENDED RANGE PARTS/ZSM ANAL YS/S Laser Partslz om Distribution ~. . ..... '. _ _ _ .. .... 100 .. ... . - · · Õ ~~ : @~ ~y ~~~~--~-------~- 80 5- ~~~J~~--l~~nLil ~ ~ ~ j : ~ §J:ft= ~ :~ ~:~:: T----- --~ ~ f : --+- {ì + t=----- -------- . r· ~ ~ :. -~~~)"~: .. ~ JJZ '" --- -----:- ~---~ - : - . ~ : : : II ..V : It: I : : : rv-¡"$liJ~ ....þ..............,- c ~Î" .oil. o 0.001 o c 6O~ ã i - 40 ..... ~ 20 o 10 .. ~ r ~ " '!" .- ... 0.1 Particle Diameter (mm) 0.01 GRAIN SIZE DISTRIBUTION SORnNG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15/5 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1695 0.0067 2.5609 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1481 0.0058 2.7549 20 0.25 0.0335 0.8500 0.0 0.0 16 0.1349 0.0053 2.8902 25 0.50 0.0280 0.7100 0.0 0.0 25 0.1189 0.0047 3.0722 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0900 0.0035 3.4743 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0663 0.0026 3.9157 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0561 0.0022 4.1553 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0441 0.0017 4.5017 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0108 0.0004 6.5289 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.6 0.8 80 2.50 0.0070 0.1770 2.7 3.3 100 2.75 0.0058 0.1490 6.3 9.6 SURFACE AREA (m"2Icç): 0.1805 120 3.00 0.0049 0.1250 10.9 20.5 20.5 140 3.25 0.0041 0.1050 14.8 35.3 170 3.50 0.0035 0.0880 16.6 51.9 200 3.75 0.0029 0.0740 15.4 67.4 STD DEVIATION (nun) : 0.0394 230 4.00 0.0024 0.0620 11.8 58.7 79.2 270 425 0.0021 0.0530 7.3 86.5 325 4.50 0.0017 0.0440 3.5 90.1 400 4.75 0.0015 0.0370 U 91.2 STD DEVIATION (Inches) : 0.0016 500 5.00 0.0014 0.0310 0.4 12.4 91.6 5.25 0.0010 0.0260 0.2 91.8 5.50 0.0009 0.0220 0.3 92.1 GRAVEL PACK; 2Ot'40 5.75 0.0007 0.0190 0.4 92.5 6.00 0.0006 0.0180 0.6 1.5 93.1 6.25 0.0005 0.0130 0.9 93.9 6.50 0.0004 0.0110 1.0 94.9 TRASK' FOLK" MOMENT'"' 6.75 0.0003 0.0093 0.9 95.8 7.00 0.0003 0.0078 0.8 3.6 96.6 MEAN 0.0926 3.5086 3.8411 7.25 0.0002 0.0065 0.6 97.2 MEDIAN 0.0900 3.4743 3.4743 7.50 0.0002 0.0055 0.5 97.7 SORTING 1.3396 0.9175 1.1567 7.75 0.0002 0.0046 0.4 98.1 SKEWNESS 0.9732 0.3081 2.4646 8.00 0.0001 0.0039 0.3 1.7 98.4 KURTOSIS 0.2531 1.9279 10.1275 8.25 0.0001 0.0033 0.3 98.6 8.50 0.0001 0.0028 0.3 98.9 8.75 0.0001 0.0023 0.3 99.1 9.00 0.??oo 0.0019 0.2 99.4 9.25 0.??oo 0.0016 0.2 99.6 . COMPUTED USING MIWMETER VAlUES 9.50 0.??oo 0.0014 0.2 99.8 - COMPUTED USING PHI VAlUES 9.75 0.??oo 0.0012 0.1 99.9 10.00 0.??oo 0.0010 0.1 1.6 100.0 Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ ;: 15 () c . :J ~ 10 II.. GRAVEL VCRS so CAS so MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT ClAY 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 60 100 120 140 170 200 230 270 325 400 500 ~~~J~l ;;. ð\ Core Lab .DI_I~ EXTENDED RANGE PARTSIZSM ANAL YSIS Laser Partslz om Distribution FileNo. : Date: Depth : Sample: ..~ ~ ~-"'~o~t"'" ~~------ ~ ~-~1 ----r-- ~~:l1"-- H~______ · ~¡;t~\1 : h ~..~:,.f · lA- t· . ~ : a"! 1;":1' -11: ~!t: ~ ..................,f.r ì~~.I-' \, . 't' . . . . . . . : : : ~ L ~-i t¡ ----............~- · · · ~_i ~ ~l · --.- · · · · · " · · · · · · ------------..-...--- · · · · · GRAIN SIZE DlSTRISU"nON PHI -2.00 -us -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15/1> 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0260 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 02100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 3.6 6.6 9.8 12.3 13.4 12.9 11.0 8.3 5.4 3.0 1.3 0.5 0.3 0.5 0.8 1.1 1.2 1.2 1.1 0.9 0.7 0.6 0.5 0.4 0.4 0.3 0.3 02 02 0.1 0.1 0.1 Particle Diameter (mm) Iii: ."~"~L'I'" 0.01 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 4.6 11.3 21.1 33.3 46.7 59.6 70.6 78.8 842 87.2 88.5 89.1 89.4 89.9 90.8 91.8 93.0 94.2 95.3 96.2 96.9 97.5 97.9 98.4 98.7 99.1 99.3 99.6 99.8 99.9 100.0 MEAN MEDIAN SORTING SKEWNESS KURTOSIS peRCeNTILES: 0.0 0.0 5 10 16 25 50 75 84 90 95 0.0 0.0 .. , HQU-050228 April 8, 2005 3783.70 51 AH . _ _ . .. . . 100 ~~~y --.-----~. 80 o c - 60 ~ i i 40-- ~ 20 o 0.001 SORnNG PARAMETERS mm 0.1754 0.1543 0.1374 0.1186 0.0844 0.0572 0.0444 0.0186 0.0082 21.1 SURFACE AREA (m^2Icc): STD DEVIATION (nun) : 49.5 STD DEVIATION (Inches) : 17.9 GRAVEL PACK : 2.2 4.5 2.7 TRASK" 0.0879 0.0844 1.4398 0.9517 0.2263 Inches 0.0069 0.0061 0.0054 0.0047 0.0033 0.0023 0.0017 0.0007 0.0003 FOLK- 3.8413 3.5665 1.0779 0.3304 1.7239 phi 2.5112 2.6959 2.8638 3.0763 3.5665 4.1280 4.4939 5.7368 6.9351 0.2144 0.0465 0.0018 20140 MOMENT- 3.9938 3.5665 1.3006 1.9412 7.0759 2.1 . COMPUTED USING MILLIMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation ~\ File No.: HOU-050228 Kigun 01 Date: April 8. 2005 NW Milne Point Depth : 3784.50 Core lBI:i --~ Sample: 54AH EXTENDED RANGE PARTSIZSII ANAL YSIS Laser Partslz.... Distribution 25 b~~J~[ " · · ~y . . 100 · · · · · · · ~ L~, · 'ì9 · ®Mt · · I · -=-$-. . · 20 --- ---.--- . -L--_._______~ 80 · I · · · · · I @) · ê) · · · I · · · ~ · · ~ · æ!" · · 0 · I · · · c -;:: 15 - · · I · · . · 60 3 ~-----.--.._- ----.------ .~.--.-.. -- --_.~--- ..... --------------- -- .------~- () I I · · · c C I I · · · ã 41 I I · · · ::I · I · · · <" ~ 10 · I · · · 4Q.!. · ------. - __..I- ,_~ · · --- II. I · · · £ I · · · I · · · I · · - · I · · 5- I · · 20 . --__e_.---- ------------~ .~- I · · I · · I · ".IJ.J 11..._ I · 0 . . . . ... - . . ~ J . .4 . .'~_ 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15f/) 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 ·1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAVel 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1037 0.0041 3.2699 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0854 0.0034 3.5491 20 0.25 0.0335 0.8500 0.0 0.0 16 0.0716 0.0028 3.8047 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0574 0.0023 4.1219 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0298 0.0012 5.0702 CRS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0098 0.0004 6.6672 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0057 0.0002 7.4463 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0038 0.0001 8.0422 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0024 0.0001 8.6970 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.0 0.0 80 2.50 0.0070 0.1770 0.0 0.0 FINE 100 2.75 0.0058 0.1490 0.4 0.4 SURFACE AREA (1II"2Icc): 0.6760 SAND 120 3.00 0.0049 0.1250 1.4 1.9 1.9 140 3.25 0.0041 0.1050 2.8 4.7 170 3.50 0.0035 0.0880 4.3 9.0 VFINE 200 3.75 0.0029 0.0740 5.7 14.6 STD DEVIATION (rnm) : 0.0329 SAND 230 4.00 0.0024 0.0620 6.7 19.5 21.3 270 4.25 0.0021 0.0530 7.2 28.6 325 4.50 0.0017 0.0440 7.2 35.8 CRS 400 4.75 0.0015 0.0370 6.8 42.6 STD DEVIATION (Inches) : 0.0013 SILT 500 5.00 0.0014 0.0310 6.1 27.3 48.7 5.25 0.0010 0.0260 5.3 54.0 5.50 0.0009 0.0220 4.6 58.6 GRAVEL PACK : NlA MED 5.75 0.0007 0.0190 4.0 62.7 SILT 6.00 0.0006 0.0160 3.6 17.6 66.3 6.25 0.0005 0.0130 3.4 69.7 6.50 0.0004 0.0110 3.2 72.9 TRASK" FOLK" MOMENT*" FINE 6.75 0.0003 0.0093 3.1 76.0 SILT 7.00 0.0003 0.0078 3.0 12.7 79.0 MEAN 0.0336 5.4404 5.5922 7.25 0.0002 0.0065 2.9 81.9 MEDIAN 0.0298 5.0702 5.0702 7.50 0.0002 0.0055 2.8 84.6 SORTING 2.4160 1.7327 1.6915 VFINE 7.75 0.0002 0.0046 2.6 87.2 SKEWNESS 0.6379 0.3208 0.6220 SILT 8.00 0.0001 0.0039 2.4 10,6 89.6 KURTOSIS 0.2915 0.8739 2.4622 8.25 0,0001 0.0033 2.2 91.8 8.50 0.0001 0.0028 1.9 93.7 8.75 0.0001 0.0023 1.7 95.4 9.00 0.??oo 0.0019 1.4 96.8 9.25 0,??oo 0.0016 1.2 97.9 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 0.9 96.8 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.8 99.6 CLAY 10.00 0.??oo 0.0010 0.4 10.4 100.0 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point 20- l >- 15 - u c CD :s ~ 10 u. GRAVEL VCRS so CRS so MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT ClAY 25 5- o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 ~~~J~[ -~-_.- A\ Core Lab .m_~ EXTENDED RANGE PARTS/Z8M ANAL YS/S , · · · · · · · · · · · · '~----.--- · · · · · · , · ~: · l[ Laser Partslz am Distribution · · · ~:~ ~:@ @J:êj ~:~ - ~~----.--- ------ · · · · · FileNo. : Date: Depth : Sample: HOU-050228 April 8, 2005 3785.60 56AH k~~t~.~. · 100 ---~- . 80 ~I , · · · · · · ~~~._- r ¡1[j~;¡-m·J.· 0.1 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 .0.75 .0.50 .0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6_75 7.00 7_25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15/:> 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0018 0.0065 0.0055 0-1)046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0_0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1-2 2.7 4.6 6.6 8.3 9.3 9.5 8.8 7.6 6.1 4.6 3.5 2.7 2.2 2.1 2.1 2.2 2.2 2.2 2.1 1.9 1.7 1.4 1-2 1_0 0.8 0.6 0.5 0.2 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.2 3.9 8.6 15.2 23.5 32.8 42.3 51.1 58.8 64.9 69.5 73.0 75.6 77.9 80.0 82.1 84.3 86.5 88.7 90.8 92.7 94.4 95.8 97_0 98.0 98.7 99.3 99.8 100.0 0.0 0.0 0.0 0.0 1.2 22.3 35.3 16.9 8.6 8.4 7.3 0.01 (') c 60g ã < 4O.!. ~ 20 fI ~ I I I o 0.001 SORßNG PARAMETERS PERCENTILES: mm 5 10 ,. 25 50 75 84 90 95 0.1010 0.0850 0.0728 0.0805 0.0379 0.0167 0.0080 0.0049 0.0031 SURFACE AREA (m^2Icc) : STD DEVIATION (mm): STD DEVIATION (Inches) : GRAVEL PACK : TRASK' MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0386 0.0379 1_9043 0.7039 0.2739 Inches 0.0040 0.0033 0.0029 0.0024 0.0015 0.0007 0.0003 0.0002 0.0001 FOLK" 5.1567 4.7217 1.5607 0.4237 1.1107 phi 3.3072 3.5569 3.7791 4.0458 4.7217 5.9043 6.9693 7.6633 8.3437 0.5263 0.0324 0.0013 50170 MOMENT*" 5.2881 4.7217 1.5464 0.9746 3.1667 . COMPUTED USING MILLIMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ ;: 15 u c Q) ~ ~ 10 II. GRAVEL VCRS SD CRS so MED SAND FINE SAND VFINE SAND CRS SILT MED SILT FINE SILT VFINE SILT ClAY ;¡. ð\ Core I..BtÍ .tsI...~ EXTENDED RANGE PARTS/Z8M ANAL YS/S ~ü'~J~- ~ ~ -_..._~-- I 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 60 100 120 140 170 200 230 270 325 400 500 Laser Partslz.... Distribution ~ ~ @t ~ ~ ~- File No.: Date: Depth : Sample: HOU-050228 April 8, 2005 3786.70 59AH j · . . 100 ©õ~t ~,; ---~~--- - : -- 80 · · · · · · - --.-- ------- · · · · · --.------------- -~------------~--.~~.----.- · . . . · . . . · . . . --+ i+ -+ -i-;i., !~iU~.w- 1~··~II:ø.- .....~...~...~_..~..rrq¡: II r @I ~ 0.1 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 8.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15/:' 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.0 2.2 3.8 5.3 6.6 7.4 7.6 7.3 6.6 5.7 4.9 4.2 3.7 3.3 3.1 3.0 2.9 2.8 2.7 2.5 2.3 2.1 1.9 1.6 1.4 1.2 1.0 0.8 0.6 0.3 SEP 0.0 0.0 0.0 0.0 3.3 23.2 27.2 16.0 11.9 9.6 8.8 CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.1 3.3 7.1 12.4 19.1 26.5 34.1 41.4 48.0 53.7 58.6 62.7 66.4 69.7 n.8 75.8 78.7 81.6 84.2 86.8 89.1 91.2 93.0 94.7 96.1 97.3 98.3 99.0 99.7 100.0 0.01 · · · · · ----.-- o c 6O~ ã 401 ~ 20 ~~...- 0 0.001 SORTING PARAMETERS PERCENTILES: mm 5 10 16 25 50 75 84 90 95 0.1161 0.0958 0.0805 0.0644 0.0349 0.0118 0.0066 0.0043 0.0027 SURFACE AREA (m^2Icc) : STD DEVIATION (mm): STD DEVIATION (Inches) : GRAVEL PACK: TRASK" MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0380 0.0349 2.3614 0.6126 0.2889 Inches 0.0046 0.0038 0.0032 0.0025 0.0014 0.0005 0.0003 0.0002 0.0001 FOLK" 5.2389 4.8424 1.n47 0.3456 0.8984 phi 3.1064 3.3840 3.6348 3.9583 4.8424 6.4358 7.2395 7.8657 8.5414 0.6040 0.0369 0.0015 NIA MOMENT** 5.3968 4.8424 1.6905 0.6978 2.6033 . COMPUTED USING MILLIMETER VAlUES - COMPUTED USING PHI VAlUES Kerr-McGee 011 & Gas Corporation A\ File No.: HOU-050228 Kigun 01 Date: April 8, 2005 NW Milne Point Depth : 3787.50 Care Lab -.- Sample: 62AH EXTENDED RANGE PARTS/Z8M ANAL YS/S Laser Partslz om Distribution 25 ~~~J~[ , · · I -- . 100 · · · · · · · ~ · ~ · '19 · · · · · · · @:0 · 20 -~--_.~ · · ------------ · I · · · · · @I · @O · · · · · ¡: · · ~ · ~ · 0 · · · · c '-'15 · · · ~---~------ 60 3 -~-'--....--~--- ~~------- ~ · · · c c · · · ã GI · · · :I · · · · i ~ 10 · · · · __11 · ---------.. · 40-- · · · · £. I&. · · · · · · · · · · · · · · · · 5 · · · · -20 --~~---------.._.__._------..---~--- -----.---_.. ~JI · · · · · · · · ~. ; "llIJdJ-"UJ · · · · i>J · . . . . . . . ; . . . ;. . . ,j . . . ,¡ . ,J "-' 11...- 0 - 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBU110N SORßNG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15(:> 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 6 -1.25 0.0937 2.3600 0.0 0.0 PERCENTILES: GRAvel 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1184 0.0047 3.0777 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0975 0.0038 3.3589 20 025 0.0335 0.8500 0.0 0.0 16 0.0818 0.0032 3.6118 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0656 0.0026 3.9307 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0355 0.0014 4.8148 CRS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0114 0.0004 6.4526 40 125 0.0165 0.4200 0.0 0.0 84 0.0065 0.0003 7.2660 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0042 0.0002 7.8885 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0026 0.0001 8.5644 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.0 0.0 80 2.50 0.0070 0.1770 0.3 0.3 FINE 100 2.75 0.0058 0.1490 1.1 1.4 SURFACE AREA (m^2Icc) : 0.6085 SAND 120 3.00 0.0049 0.1250 2.3 3.7 3.7 140 3.25 0.0041 0.1050 3.9 7.6 170 3.50 0.0035 0.0880 5.4 13.0 VFINE 200 3.75 0.0029 0.0740 6.7 19.7 STD DEVIATION (nun): 0.0376 SAND 230 4.00 0.0024 0.0620 7.5 23.5 27.2 270 4.25 0.0021 0.0530 7.6 34.9 325 4.50 0.0017 0.0440 7.3 42.1 CAS 400 4.75 0.0015 0.0370 6.5 48.6 STD DEVIATION (Inches) : 0.0015 SILT 500 5.00 0.0014 0.0310 5.6 27.0 54.2 5.25 0.0010 0.0260 4.7 58.9 5.50 0.0009 0.0220 4.0 62.9 GRAVEL PACK : NlA MED 5.75 0.0007 0.0190 3.5 66.4 SILT 6.00 0.0006 0.0160 3.2 15.4 69.6 6.25 0.0005 0.0130 3.0 72.7 6.50 0.0004 0.0110 3.0 75.6 TRASK· FOLK" MOMENT*" FINE 6.75 0.0003 0.0093 2.9 78.5 SILT 7.00 0.0003 0.0078 2.8 11.7 61.3 MEAN 0.0385 5.2309 5.3859 7.25 0.0002 0.0065 2.7 84.0 MEDIAN 0.0355 4.8148 4.8148 7.50 0.0002 0.0055 2.5 86.5 SORTING 2.3965 1.7449 1.7099 VFINE 7.75 0.0002 0.0046 2.3 88.8 SKEWNESS 0.5930 0.3542 0.6926 SILT 8.00 0.0001 0.0039 2.1 9.7 91.0 KURTOSIS 0.2904 0.8917 2.5781 8.25 0.0001 0.0033 1.9 92.9 8.50 0.0001 0.0028 1.7 94.5 8.75 0.0001 0.0023 1.4 96.0 9.00 0.??oo 0.0019 1.2 972 9.25 0.??oo 0.0016 1.0 98.2 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 0.8 99.0 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.7 99.7 CLAY 10.00 0.??oo 0.0010 0.3 9.0 100.0 Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ -; 15 u c CD :J ~ 10 I&. GRAvel VCRS so CRS so MED SAND FINE SAND VFINE SAND CRS SILT MED SILT FINE SILT VFINE SILT CLAY 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 b~~J~~ A\ Cere Lab .ar.... .m...... EXTENDED RANGE PARTS/Z8M ANAL YS/S , · I ___l~ ~ I ¡ · I · . · I · . · I · . · . _____________ it · . · . · I · I · I · I -------____--- 41 · . · . · . · . · . ............ Laser Partslz om Distribution . I I . : "@ : ~ ~,-~--=-,-~-- :§I rowo I ~ P& ~ b~~t FileNo. : Date: Depth : Sample: HOU-050228 April 8. 2005 3789.70 67AH . . 100 80 o c 60 ~ i i 40...... ~ _.. T.o~" ~~~~ lljþ.~'l-_-jJ......__ ~ 0.001 ~ " ì _ ¡ - 0.1 Particle Diameter (mm) GRAlN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15(1) 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3600 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 1.1 2.5 4.2 5.9 7.3 8.2 8.3 7.9 7.0 5.9 4.8 4.0 3.3 2.9 2.7 2.6 2.5 2.4 2.3 2.2 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.7 0.5 0.3 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 1.4 3.9 8.1 14.1 21.4 29.6 37.9 45.8 52.7 58.6 63.5 67.5 70.8 73.7 76.5 79.1 81.6 84.0 86.3 88.5 90.5 92.4 84.0 95.4 96.7 97.7 98.6 99.2 99.7 100.0 0.0 0.0 0.0 0.0 3.9 25.7 29.1 15.1 10.2 8.4 7.6 0.01 SORTING PARAMETERS PERCENTILES: mm 5 10 16 25 50 75 84 90 95 0.1198 0.0996 0.0843 0.0687 0.0398 0.0146 0.0078 0.0046 0.0030 SURFACE AREA (mA2Icc): STD DEVIATION (nvn) : STD DEVIATION (Inches) : GRAVEL PACK : TRASK" MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0417 0.0398 2.1686 0.6353 0.2854 Inches 0.0047 0.0039 0.0033 0.0027 0.0016 0.0006 0.0003 0.0002 0.0001 FOlK*" 5.0746 4.6525 1.6681 0.3865 0.9802 phi 3.0615 3.3274 3.5883 3.8830 4.6525 6.0965 7.0031 7.6939 8.4034 0.5387 0.0383 0.0015 50170 MOMEN,... 5.2295 4.6525 1.8486 0.8358 2.8844 . COMPUTED USING MIWMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ ;: 15 u c Q) :I [10 u. GRAVel VCRS so CRS so MED SAND FINE SAND VFINE SAND CAS SilT MED SILT FINE SilT VFINE SIlT CLAY 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 ~~1J~- A\ Core Lab --- EXTENDED RANGE PARTS/2SM ANAL YS/S , · I · · · .--..----- · · · · · · --------.-- - - - · · · · · -~._-_._~._- · · · · · · ~_._---------_.- · · · · · Laser Partslz om Distribution · · · :~:~ .~__n..~_$... êO:@J ~:~ · ----.---._-- · · · · ~ I · · I I I · · · · · · · ............ ... GRAIN SIZE DlSTRIBU110N PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 625 6.50 6.75 7.00 7.25 7.50 7.75 6.00 825 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15/5 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 02500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0018 0.0014 0.0012 0.0010 ~¡ FileNo. : Date: Depth : Sample: HOU-050228 April 8. 2005 3790.50 70AH SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.3 3.0 5.1 7.2 8.9 9.8 9.8 9.1 7.7 6.1 4.6 3.3 2.5 2.0 1.8 1.8 1.9 1.9 1.9 1.9 1.7 1.5 1.3 1.1 0.9 0.7 0.6 0.4 0.2 0.1 Particle Diameter (mm) SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.3 4.3 9.3 16.5 25.4 352 45.0 54.1 61.8 67.9 n.4 75.7 782 80.2 82.0 83.8 85.7 87.7 89.6 91.5 932 94.7 96.0 972 98.1 98.8 99.3 99.8 100.0 0.0 0.0 0.0 0.0 1.3 24.1 36.4 16.4 7.5 7.5 6.8 PERCENTiLeS: bM~~;.. tOO --.- : -80 · · · · · --'-~~----'---.---'~' --._-_._-~ o c 6O~ i <" CD 40-- £ 20 llIn--lll-j;:.I ~ I 5 10 16 25 50 75 84 90 95 0.01 o 0.001 SORTING PARAMETERS mm 0.1025 0.0867 0.0750 0.0625 0.0401 0.0197 0.0092 0.0053 0.0032 SURFACE AREA (m"2Icc) : STD DEVIATION (mm) : STD DEVIATION (IncheS) : GRAVEl PACK : MEAN MEDIAN SORTING SKEWNESS KURTOSIS TRASK· 0.0411 0.0401 1.7834 0.7623 0.2632 Inches phi 0.0040 0.0034 0.0030 0.0025 0.0016 0.0008 0.0004 0.0002 0.0001 3.2862 3.5278 3.7370 3.9999 4.8387 5.6691 6.7898 7.5571 8.2902 0.4933 0.0329 0.0013 50/70 FOlK" MOMENT*" 5.0485 4.8387 1.5164 0.4324 1.2286 5.1918 4.8387 1.5182 1.0855 3.4712 . COMPUTED USING MllUMETER VAlUES .. COMPUTED USING PHI VAlUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ -;: 15 () c . :J l10 II.. GRAVEL VCRS so CAS so MED SAND FINE SAND VANE SAND CAS SILT MED SILT FINE SILT VANE SILT ClAY 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 A\ £:on! lIII:i .ar_ rm--. EXTENDED RANGE PARTS/2SM ANAL YS/S Laser Partslz.... Distribution ~' · ~ t-~ o . · · · · , . . · . . · . . _l~. l.~l~ ~ · ~ . . . :~. :@i):@): :~ :~:~: · . . . . ----.---_____ _ _ _-.--______.._-.-_ _____~......._.___._ _ __no. a ... · ... · ... · ... · ... - t -I r -,- J- f:·ll:11.- · .. t- ~ ....;...._..~....¡J r_ '~ . ~~r'I"'~rar¡lill.1r 1 0.1 0.01 Particle Diameter (mm) k~J~[ GRAIN SIZE DlSTRISU"nON PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.1515 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.3 3.6 6.4 9.1 11.2 12.0 11.5 9.8 7.4 5.1 3.1 1.8 1.1 1.0 1.1 1.3 1.5 1.6 1.6 1.4 1.3 1.1 1.0 0.8 0.7 0.6 0.5 0.4 0.3 0.3 0.1 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.3 4.8 11.2 20.3 31.5 43.5 55.0 64.8 72.2 77.3 80.4 82.2 83.3 64.3 65.4 86.7 88.3 89.8 91.4 92.8 94.1 95.2 96.2 97.0 97.7 98.3 98.8 99.3 99.6 99.9 100.0 0.0 0.0 0.0 0.0 11.2 43.8 25.4 5.0 6.0 4.8 3.8 FileNo. : Date: Depth : Sample: -"'=' --_.._-~--_._-- 1"'''' ~ I HOU-050228 April 8, 2005 3791.50 72AH _ .. . . 100 ~~~y 80 o c 60 ~ ã <" 40.!. ~ 20 o 0.001 SORßNG PARAMETERS PERCENTILES: mm 5 10 1& 25 50 75 84 90 95 0.1484 0.1296 0.1145 0.0979 0.0672 0.0401 0.0199 0.0091 0.0048 SURFACE AREA (""'2ICC) : STD DEVIATION (mm): STD DEVIATION (Inches): GRAVEL PACK : TRASK" MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0690 0.0672 1.5619 0.8695 0.2399 Inches 0.0058 0.0051 0.0045 0.0039 0.0026 0.0016 0.0008 0.0004 0.0002 FOLK- 4.2242 3.8951 1.3814 0.4649 1.5774 phi 2.7526 2.9484 3.1267 3.3526 3.8951 4.6393 5.6510 6.7725 7.7047 0.3199 0.0473 0.0019 40160 MOMENT*" 4.4465 3.8951 1.4844 1.5098 4.8031 . COMPUTED USING MILLIMETER VAlUES - COMPUTED USING PHI VAlUES Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point 25 ~~1J~[ 20 ~~______n # '>: 15 CJ c III ::s l10 IL GRAVEL VCRS so CRS so MED SAND FINE SAND VFINE SAND CRS SILT MED SILT FINE SILT VFINE SILT CLAY 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 60 100 120 140 170 200 230 270 325 400 500 A\ Core lIJb ---- EXTENDED RANGE PARTS/ZSM ANAL YS/S Laser Partslz - Distribution GRAIN SIZE DlSTRII1UT1ON , ~ ' .---.... .! i : i Ii r r·_"?e~D~f·_·~~l (~~~y 80 ----t - ~ u-T- ~: .. . . : ~ : -:- 1: ~--------~ -- . ------ -- ------------- ~- .... : : : : ~~ ~ i~T · . . . ~:if! ,. · . . . ~ . ~.. : . . .. ~ ~; ¡.- ~ · : . : iJ~~,' (¡-~ : ; ~ -- : R}1 ~. ~';" R .....~...~_..~_..~J11rJ ¡~ l'~_ PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -025 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 425 4.50 4.75 5.00 5.25 5.50 5.75 6.00 625 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15/S' 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 2.7 5.6 8.9 11.8 13.5 13.5 12.0 9.3 62 3.5 1.5 0.4 0.1 0.2 0.6 0.9 1.1 1.1 1.1 0.9 0.8 0.6 0.5 0.5 0.4 0.4 0.3 0.3 0.2 02 0.1 0.1 Particle Diameter (mm) SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 3.3 8.9 17.9 29.7 432 56.7 68.6 77.9 842 87.7 89.2 89.7 89.8 90.0 90.6 91.5 92.6 93.7 94.8 95.8 96.5 97.2 97.7 98.2 98.6 98.9 99.2 99.5 99.7 99.9 100.0 MEAN MEDIAN SORTING SKEWNESS KURTOSIS PERCeNTILes: 0.0 0.0 5 10 18 25 50 75 84 90 95 0.0 0.0 ---,-~ po III""',' 1"- I~ , 0.01 File No.: Date: Depth : Sample: HOU-050228 April 8, 2005 3792.25 75AH 100 o c 6O~ it i 40- :!. 20 o 0.001 SORTING PARAMETERS mm 0.1684 0.1461 0.1300 0.1129 0.0809 0.0558 0.0442 0.0192 0.0076 17.9 SURFACE AREA (m^2Icc:): STD DEVIATION (nun): 50.8 20.6 STD DEVIATION (Inches) : GRAVEL PACK : 1.4 4.2 2.9 TRASK" 0.0844 0.0809 1.4219 0.9630 0.2247 Inches 0.0066 0.0058 0.0051 0.0044 0.0032 0.0022 0.0017 0.0008 0.0003 FOLK" 3.6898 3.6275 1.0673 0.3239 1.6071 phi 2.5697 2.7750 2.9435 3.1469 3.6275 4.1626 4.4984 5.7061 7.0483 0.2250 0.0429 0.0017 20(40 MOMENT"" 4.0469 3.6275 1.2978 2.0165 7.3720 2.3 . COMPUTED USING MILLIMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point ~ ...... 15 ~ c . = W 10 II.. GRAVEL VCRS so CRS so MED SAND FINE SAND VFINE SAND CRS SILT MED SILT FINE SILT VFINE SILT CLAY 25 20 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 ~\ Con! LIlli Im....~ EXTENDED RANGE PARTSIZSM ANAL YSIS GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 6.00 8.25 6.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15/11 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0180 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.8 1.6 2.5 3.6 4.6 5.4 6.0 6.2 6.2 5.9 5.5 5.1 4.8 4.4 4.2 4.0 3.8 3.6 3.3 3.1 2.8 2.6 2.3 2.0 1.7 1.4 1.1 0.9 0.4 Laser Partslz.... Distribution ~ ~u @) ~ I SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 1.1 2.7 5.2 8.8 13.4 18.8 24.8 31.0 37.2 43.1 48.6 53.7 58.5 62.9 67.1 71.1 74.8 78.4 81.7 64.8 ffT.7 90.2 92.5 94.5 96.2 97.6 98.7 99.6 100.0 0.0 0.0 0.0 0.0 1.1 12.3 23.7 21.3 16.4 12.8 12.3 FileNo. : Date: Depth: Sample: HOU-050228 April 8, 2005 3793.50 78AH ®õ~t ~..: _._._----_._---~ (') c --60 ~ i <" 40.!. ~ SORTING PARAMETERS PERCENTILES: mm 5 10 16 25 50 75 64 90 95 0.0893 0.0709 0.0577 0.0438 0.0212 0.0077 0.0048 0.0034 0.0022 b~J~____l__~ 1 ~ · WI . ~ ~ ¡ r · . ~---_..----.--------- . · . · . · . ~ ----~ -~-I I · . . I · . . ' .- : : :! ¡ ~ -.. . .~. ~... L .-.1 j.l[ .-;~tl:U.llllrunit-nll-l. ~ 1 0.1 0.01 0.001 Particle Diameter (mm) SURFACE AREA (m^2Icc): STD DEVIATION (rnm) : STD DEVIATION (Inches): GRAVEL PACK : TRASK' MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0258 0.0212 2.3Tn 0.7565 0.2669 Inches 0.0035 0.0028 0.0023 0.0017 0.0008 0.0003 0.0002 0.0001 0.0001 FOLK" 5.7889 5.5618 1.7055 0.2078 0.8787 phi 3.4856 3.81ffT 4.1151 4.5135 5.5618 7.0126 7.6897 8.2213 8.8438 0.7920 0.0264 0.0010 NIA MOMENT'"' 5.9401 5.5618 1.6479 0.4114 2.3219 . COMPUTED USING MILLIMETER VAlUES - COMPUTED USING PHI VAlUES Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ --15 ~ c GI ;:, l10 II.. GRAVEl VCRS so CASSO MEO SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SIlT ClAY 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 ~~~J~ ;;. ~\ £:ore Leti tar... .",.".,.. EXTENDED RANGE PARTS/28M ANAL YS/S · · · ~~ ~, · -.--- · · · · · " . · . · . · . · . · . · . --------------- . · . · . · . · . · . ............. Laser Partslz om Distribution ~ @t ~ ~ ~.: ~ ~ · · · · ~ . . : .§SMt .. -~--_._----~--- File No.: Date: Depth : Sample: HOU-050228 April 8. 2005 3794.60 80AH ~..: : . . i I r -- ) ...L.;~~b I ~_~- 0.1 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15/0 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.11028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.7 1.4 2.3 3.2 4.1 4.8 5.4 5.6 5.7 5.6 5.3 5.1 4.8 4.5 4.3 4.1 3.9 3.8 3.6 3.4 3.1 2.9 2.6 2.3 2.0 1.7 1.5 1.3 0.7 SEP 0.0 CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 1.0 2.4 4.7 7.9 12.0 18.8 22.2 27.8 33.5 39.1 44.4 49.4 54.2 58.7 63.0 67.1 71.0 74.8 78.4 81.8 84.9 87.8 90.4 92.7 94.7 96.5 97.9 99.3 100.0 0.0 0.0 0.0 1.0 11.0 21.5 20.7 16.8 13.9 15.1 0.01 o c ·~-60 ~ i i" 40...... £, 20 . ~ IU.i.L 0 0.001 SORTING PARAMETERS PERCENTILES: mm 5 10 18 25 50 75 84 90 95 0.0865 0.0878 0.0545 0.0405 0.0186 0.0084 0.0041 0.0029 0.0019 SURFACE AREA (A2Iec): STD DEVIATION (nvn) : STD DEVIATION (Inches) : GRAVEL PACK : TRASK· MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0235 0.0186 2.5052 0.7506 0.2621 Inches 0.0034 0.0027 0.0021 0.0016 0.0007 0.0003 0.0002 0.0001 0.0001 FOLK- 5.9568 5.7448 1.7726 0.1860 0.6575 phi 3.5310 3.6631 4.1973 4.6268 5.7448 7.27fil 7.9284 6.4415 9.0752 0.9097 0.0252 0.0010 NlA MOMENT*" 6.1155 5.7448 1.7003 0.3245 2.2063 . COMPUTED USING MIWMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point ~ '>: 15 u I: Q) ~ (10 II. GRAVel VCRS so CASSO MEO SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT ClAY 25 ~\ Core lilli ""- '"'- EXTENDED RANGE PARTS/29M ANAL YS/S ~ U'kJ~[ ~ ~ _.._--_......-_.~ , 20 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 Laser Partslz.... Distribution · · · . . : ~ : '@ : ~-_-º'hi_---=--C!íà--~ : ~ : r,a : · ~ . I..::::JI . : £3 : ~ : · . . · . · . · . · . · . · . -~~.-------~ , . . , . . , . . , . . , . . , . · . · . · . · . · . · . ----- · · · · · . - . ~~y '--"~------"'--- · · · · · š, iÏ~· I . , . I : .:!..., ... .s . Ø'''!:iJ .. L~ ~~ I Ë . ~¡P t ~~ ~-~ 0.1 Particle Diameter (mm) .............. GRAIN SIZE DlSTRlsvnON PHI -2.00 -1.75 -1.50 -125 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 6.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.15/:' 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3600 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0280 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 1.9 3.9 6.2 8.3 9.7 10.1 9.5 8.1 6.2 4.4 2.9 2.0 1.6 1.5 1.6 1.8 1.9 2.0 1.9 1.8 1.6 1.5 1.3 1.2 1.1 1.0 0.9 0.8 0.8 0.7 0.7 0.5 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 2.3 6.2 12.4 20.7 30.5 40.6 50.1 58.2 64.5 68.9 71.8 73.8 75.4 76.8 78.5 80.2 82.2 64.1 86.0 87.8 89.5 90.9 92.3 93.5 94.6 95.6 96.5 97.4 98.1 98.8 99.5 100.0 0.0 0.0 0.0 0.4 20.3 37.5 15.6 6.4 7.6 5.7 6.5 FileNo. : Date: Depth : Sample: PERCENTILES: 5 10 16 25 50 75 64 90 95 0.01 HOU-050228 April 8, 2005 3795.70 83AH . 100 -80 o c 60 g Ii i 40..... £ 20 ~- ~....- 0 0.001 SORTING PARAMETERS mm 0.1872 0.1599 0.1387 0.1162 0.0742 0.0272 0.0111 0.0061 0.0031 SURFACE AREA (m"2Icc): STD DEVIATION (nvn): STD DEVIATION (Inches) : GRAVEL PACK : MEAN MEDIAN SORTING SKEWNESS KURTOSIS TRASK' 0.0717 0.0742 2.0688 0.5732 0.2896 Inches 0.0074 0.0083 0.0055 0.0046 0.0029 0.0011 0.0004 0.0002 0.0001 FOLK" 4.3645 3.7524 1.8066 0.5268 1.1561 phi 2.4172 2.6446 2.8503 3.1050 3.7524 5.2026 6.4908 7.3492 8.3342 0.4374 0.0638 0.0025 20140 MOMENT** 4.5067 3.7524 1.8195 1.1915 3.5415 . COMPUTED USING MILLIMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 20 # ;: 15 u c . :I l10 IL GRAVEL VCRS so CAS so MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT ClAY A\ Core I..BtÌ -- '"'- FileNo. : Date: Depth : Sample: HOU-050228 April 8, 2005 3796.40 86AH EXTENDED RANGE PARTS/2SM ANAL YS/S Laser Partslz - Distribution ~~J~- ._ _ .. . . 100 5 ~~¡i¡~;~; -t -~ t-+~-~-:-- ~ : c::s...: : ~ nn : .~. .s L.:..::I- . .. . _.~---- -- ---- ----..-------------.-- . . . ... 'iJI~·~ j - ¡r..: {: I J: ~¡ r ~ 141" I !: .: . . .. ... _.. .... _ .- ~6.. _ o 0.001 t @~~y 80 (') c ---- 60 ~ i i -40 - ~ --.-------- --~-~~ 20 I, iI r" .. ;- ,. r" f" FJI "' ~ o 10 I ... 0.1 Particle Diameter (mm) 0.01 GRAIN SIZE DISTRIBUTION SORßNG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1575 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 6 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 .(1.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 .(1.50 0.0555 1.4100 0.0 0.0 16 .(1.25 0.0469 1.1900 0.0 0.0 5 02168 0.0085 2.2054 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1888 0.0074 2.4048 20 0.25 0.0335 0.8500 0.0 0.0 18 0.1665 0.0066 2.5868 25 0.50 0.0280 0.7100 0.0 0.0 25 0.1426 0.0056 2.8096 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0992 0.0039 3.3337 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0633 0.0025 3.9814 40 125 0.0165 0.4200 0.0 0.0 84 0.0450 0.0018 4.4743 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0168 0.0007 5.9095 50 1.75 0.0117 0.2970 02 02 95 0.0070 0.0003 7.1849 80 2.00 0.0098 02500 1.8 1.7 1.7 70 225 0.0083 0.2100 3.9 5.7 80 2.50 0.0070 0.1770 6.8 12.4 100 2.75 0.0058 0.1490 9.5 21.9 SURFACE AREA (m^2Icc): 02318 120 3.00 0.0049 0.1250 11.8 31.8 33.5 140 325 0.0041 0.1050 12.4 45.9 170 3.50 0.0035 0.0880 11.9 57.8 200 3.75 0.0029 0.0740 10.2 68.0 STD DEVIATION (mm) : 0.0607 230 4.00 0.0024 0.0620 7.8 42.3 75.9 270 4.25 0.0021 0.0530 5.3 812 325 4.50 0.0017 0.0440 3.2 84.3 400 4.75 0.0015 0.0370 1.7 86.0 STD DEVIATION (Inches): 0.0024 500 5.00 0.0014 0.0310 0.9 11.1 86.9 525 0.0010 0.0260 0.8 87.8 5.50 0.0009 0.0220 0.7 68.3 GRAVEL PACK : 20140 5.75 0.0007 0.0190 0.9 892 6.00 0.0006 0.0160 1.1 3.3 902 6.25 0.0005 0.0130 1.2 91.4 8.50 0.0004 0.0110 1.1 92.5 TRASK" FOLK" MOMENT"" 8.75 0.0003 0.0093 1.0 93.8 7.00 0.0003 0.0078 0.9 4.3 94.5 MEAN 0.1030 3.4649 3.8363 7.25 0.0002 0.0065 0.8 95.3 MEDIAN 0.0992 3.3337 3.3337 7.50 0.0002 0.0055 0.7 96.0 SORTING 1.5010 1.2233 1.4645 7.75 0.0002 0.0046 0.6 96.8 SKEWNESS 0.9179 0.3768 1.8521 8.00 0.0001 0.0039 0.6 2.7 97.2 KURTOSIS 0.2303 1.7345 6.4322 8.25 0.0001 0.0033 0.5 97.7 8.50 0.0001 0.0028 0.5 98.2 8.75 0.0001 0.0023 0.5 98.8 9.00 0.??oo 0.0019 0.4 99.0 925 0.??oo 0.0016 0.3 99.4 . COMPUTED USING MIWMETER VALUES 9.50 0.??oo 0.0014 0.3 99.7 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.2 99.9 10.00 0.??oo 0.0010 0.1 2.8 100.0 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point 25 ~~kJ®n 20 -~------ ~ ..... 15 ~ c GI ::J ¥10 II. GRAVEL VCRS so CRS so MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT CLAY 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 ~\ Core Lab -- .."... EXTENDED RANGE PARTS/28M ANAL YS/S , · · · · · --------- · · · · · · -~- --.-- · · · · · " · · · · · · ------.-. .- · · · · · '-t' · . · . ~: -:~ @í2). . - _____. --"-- ...-L. QJ;L _ §jJ . . @: .-: &I ~: : ~ · . --.--------- -.------ · · · · · · · · · · ...........IIIIi.. · · · · Laser Partslz.... Distribution GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.1575 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0136 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0_0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo · · · :'13 ~~u · :@I :~ · ---.-------- · · . : ~.¡ --_.----~------I' .. · ¡ . · ¿.. : - ~.1t I . ~ ~ --~--: "",)1. ..t.} - · . I '... '¡~ I : :" ~ ':I. ¡: ~ I_ . ~ . . .j ~ ~ i~ ) fL ~ ~ II' .. .. r ~ fJ V r Q1 Q~ Particle Diameter (mm) MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 2.1 4.9 8.1 10.9 12.5 12.7 11.3 8.8 6.0 3.5 1.7 0.7 0.5 0.7 1.0 1.3 1.5 1.5 1.4 1-2 1.1 0.9 0_8 0.8 0.7 0.7 0.6 0.6 0.5 0.4 0.3 0.1 File No.: Date: Depth : Sample: HOU-050228 April 8. 2005 3797.70 88AH _ ... . 100 ~ ~~:my ------------~------ 80 ---_._---._------- ---------------- -- ro .- F' - " o c ---- 60 ~ i i" 401 20 -- o 0.001 SEP SORßNG PARAMETERS 0.0 CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 2.4 7.4 15.5 26.3 38.9 51.5 62.8 71.8 77.8 81.1 62.7 83.5 84.0 84.6 85.6 87.0 88.4 89.9 91.3 92.6 93.7 94.6 95.4 96.2 96.9 97.6 98.2 98.8 99.2 99.8 99.9 100.0 0.0924 0.0901 1.4995 0.8976 0.2262 PERCENTILES: mm 0.0 5 10 18 25 50 75 84 90 95 0.1929 0.1680 0.1478 0.1280 0.0901 0.0569 0.0258 0.0109 0.0051 0.0 0.3 SURFACE AREA (mA2Icc): 26.0 STD DEVIATION (nn): 45.3 STD DEVIATION (Inches) : 11.9 GRAVEL PACK : 3.5 TRASK· 5.6 MEAN MEDIAN SORTING SKEWNESS KURTOSIS 3.6 Inches 0.0076 0.0066 0.0058 0.0050 0.0035 0.0022 0.0010 0.0004 0.0002 FOLK" 3_8359 3.4727 1.4254 0.5070 1.8411 phi 2.3739 2.5739 2.7579 2.9662 3.4727 4.1350 5.2m 6.5172 7.6247 0.2855 0.0610 0_0024 20140 MOMENT*" 4.0642 3.4727 1.5632 1.6917 5.3477 3.8 . COMPUTED USING MIWMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 20 ¡: ;: 15 u c CD ~ ~ 10 u. GRAVEL VCRS so CASSO MED SAND FINE SAND VFINE SAND CRS SILT MED SILT FINE SILT VFINE SILT CLAY A\ Core LZIIÌ ---- File No.: Date: Depth : Sample: HQU-050228 April 8, 2005 3798.40 91 AH EXTENDED RANGE PARTS/28M ANAL YS/S Laser Partslz '"' Distribution ~~~;..1oo 5 ~~~L~: ! ~ ~ ~ ~ :&1: :~:~: .@. .I:::::JØ.~. :~: :~:~: ~_.~- ---.--,.---.- ._~-_.'''''----~-- ~-.------ - ~.- -r--- · . . . . . · . . . . . · . . . ~ . · I I . '-_. __~______U__~__"~_ "~__ _~-' ~___ : : : : ~~~~i : : : : if:; : .~ : : : : ~ :~~ -'-T ¡--T- --Tl1i~~ ~-I~--- --- . . ... . = . . . ~ _ . . ~ . . . 4 ~ ~:) c' : ,,' II J........ 13 II JlI ~ ~ 0.1 0.01 Particle Diameter (mm) o 0.001 80 ---~_.- o c 60 ~ ã 40.! l. 20 ro r' ro- - . ..., o 10 GRAIN SIZE DlSTRIBUOON SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1515 4.??oo 0,0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1920 0.0076 2.3808 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.16n 0.0066 2.5804 20 0.25 0.0335 0.8500 0.0 0.0 16 0.14n 0.0058 2.7640 25 0.50 0.0280 0.7100 0,0 0.0 25 0.1273 0.0050 2.9739 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0899 0.0035 3.4751 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0575 0.0023 4.1207 40 1.25 0.0165 0.4200 0-0 0.0 84 0.0313 0.0012 4.9961 45 1.50 0.0136 0.3500 0.0 0.0 90 0.0115 0.0005 6.4432 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0054 0.0002 7.5299 60 2.00 0.0098 0.2500 0.3 0.3 0.3 70 2.25 0.0083 0.2100 2.1 2.4 80 2.50 0.0070 0.1770 4.8 7.2 100 2.75 0.0058 0.1490 8.0 15.2 SURFACE AREA (mA2Icc): 0.2755 120 3.00 0.0049 0.1250 10,8 25.8 26.0 140 3.25 0.0041 0.1050 12.6 38.6 170 3.50 0.0035 0.0880 12.8 51.5 200 3.75 0.0029 0.0740 11.5 62.9 STD DEVIATION (mm): 0.0579 230 4.00 0.0024 0.0620 9.0 45.9 71.9 270 4.25 0.0021 0.0530 6.1 78.1 325 4.50 0.0017 0.0440 3,6 81.6 400 4.75 0.0015 0.0370 1.7 63.3 STD DEVIATION (Inches) : 0.0023 500 5.00 0.0014 0.0310 0.7 12.1 84.0 5.25 0.0010 0.0260 0.5 84.5 5.50 0.0009 0.0220 0.6 85.1 GRAVEL PACK : 20140 5.75 0.0007 0.0190 1.0 86.1 6.00 0.0006 0.0160 1-3 3.4 87.4 6.25 0.0005 0.0130 1.5 86.9 6.50 0.0004 0.0110 1.5 90.4 TRASK· FOLK" MOMENT** 6.75 0.0003 0.0093 1.4 91.7 7.00 0.0003 0.0078 1-2 5.5 93.0 MEAN 0.0924 3.7451 4.04n 7.25 0.0002 0.0065 1.0 94.0 MEDIAN 0.0899 3.4751 3.4751 7.50 0.0002 0.0055 0,9 94.9 SORTING 1.4880 1.3382 1.5342 7,75 0.0002 0.0046 0.8 95,7 SKEWNESS 0.9047 0.4689 1.n38 8.00 0.0001 0.0039 0.7 3.5 96.4 KURTOSIS 0.2241 1.8402 5.5286 8.25 0.0001 0.0033 0.7 97.1 8.50 0.0001 0-0028 0,6 97.7 8.75 0.0001 0.0023 0.6 98.3 9.00 0.??oo 0.0019 0,5 98,6 9,25 0.??oo 0,0016 0.4 99,3 . COMPUTED USING MILLIMETER VALUES 9.50 0,??oo 0.0014 0.3 99,6 - COMPUTED USING PHI VALUES 9.75 0,??oo 0.0012 0.3 99.9 10.00 0.??oo 0.0010 0.1 3.6 100.0 Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point ~ ;: 15 u c Q) ;:, ~ 10 LI. GRAVEL VCRS so CRS so MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT CLAY 25 20 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 k~~J~[ A\ Core LaI:Ì -~ EXTENDED RANGE PARTS/2SM ANAL YS/S GRAIN SIZE DISTRIBUTION Laser Partslz.... Distribution ¡ ~ ~ ~ ~ ~ ¡ ~~~;.. 100 ¡ I i r : r Y·· --80 ~ ~[ L.. _. m1{ 1_=__ :! : ::::-, . i .: ~ . :.;: ~ .; - í~ ~- n_~_+_n_~_ . {)p- '~~J~--~-- ---~- ~ ~ ¡ ~~I.a ;~ 1, rl an 1;111I011I11'_... ... . . . . . . . . Ii & . . Ii . . . II r~ f ~ ".. I, ~ ~ r'- I F' I"" . ; r- r' f' r' F' F' , 0.1 0.01 Particle Diameter (mm) PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.1575 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 1.8 4.2 7.0 9.6 11.3 11.7 10.7 8.7 6.3 4.0 2.3 1.3 1.0 1.0 1.3 1.5 1.7 1.7 1.6 1.5 1.4 1.2 1.1 1.0 0.9 0.8 0.8 0.7 0.5 0.4 0.4 0.2 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 2.0 6.2 13.2 22.8 34.1 45.8 56.6 65.3 71.6 75.6 77.9 79.3 80.3 81.3 82.6 84.1 85.8 87.6 89.2 90.7 92.1 93.3 94.4 95.3 96.2 97.1 97.8 98.5 99.0 99.5 99.8 100.0 0.0 0.0 0.0 0.2 22.6 42.4 14.0 4.9 6.6 4.6 4.7 FileNo. : Date: Depth : Sample: HOU-050228 April 8. 2005 3799.40 94AH 20 o 0.001 SORßNG PARAMETERS PERCENTILES: mm 5 10 16 25 50 75 84 90 95 0.1866 0.1619 0.1421 0.1212 0.0826 0.0454 0.0163 0.0065 0.0041 SURFACE AREA (m^2Icc): STD DEVIATION (nvn): STD DEVIATION (Inches) : GRAVEL PACK : TRASK" MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0833 0.0826 1.6346 0.8063 0.2471 inches phi 0.0073 0.0064 0.0058 0.0048 0.0033 0.0018 0.0006 0.0003 0.0002 2.4218 2.6265 2.8150 3.0448 3.5984 4.4827 5.9402 6.8772 7.9158 0.3373 0.0629 0.0025 æ'4O FOLK- MOMENT*" 4.1179 3.5984 1.6137 0.5351 1.5881 4.2638 3.5984 1.6615 1.4354 4.3342 . COMPUTED USING MILLIMETER VALUES .. COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 20 ~ ......15 ~ c CD ::J ~ 10 II.. GRAVEL VCRS SD CASSO MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT CLAY k~~J~[ 5 o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 ..... A\ Core lilli laa... tm~ EXTENDED RANGE PARTS/28M ANAL YS/S Laser Partslz om Distribution FileNo. : Date: Depth : Sample: HOU-050228 April 8, 2005 3800.50 96AH 100 ~e·;··80 ;+-~ i ~ ~0 - ----:------- f ' . · . · . · . . i - ¡. . t J--~--- : í' ~ - j -T L.;) ~ ~ .....~.:~ 1- II "" .. Ell II 1111I11I11 .- "- a. ........ . . . . . _ . . . . . . ..., ....~ L ~ ¡* r- ,- r........... I .- 0.1 0.01 Particle Diameter (mm) · · · · · · " · · · · · · -"'-....-._._~- GRAlN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.1575 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0260 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 o.oOS5 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.4 3.5 6.2 8.8 10.8 11.5 10.9 9.2 6.8 4.5 2.7 1.5 1.1 1.1 1.3 1.6 1.8 1.8 1.7 1.6 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.2 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.6 5.1 11.3 20.1 30.9 42.4 53.3 62.5 69.3 73.8 76.5 78.0 79.1 80.2 81.5 83.1 84.8 86.6 86.4 90.0 91.4 92.7 93.8 94.9 95.9 96.8 97.6 96.3 98.9 99.4 99.8 100.0 0.0 0.0 0.0 0.1 19.9 42.4 15.6 5.1 6.9 4.9 5.1 o c 6O~ ã i" 40-- ~ 20 ~I I I o 0.001 SORTING PARAMETERS PERCENTILES: mm 5 10 16 25 50 75 84 90 95 0.1779 0.1548 0.1362 0.1159 0.0783 0.0409 0.0144 0.0078 0.0038 SURFACE AREA (m"2Ioo): STD DEVIATION (mm) : STD DEVIATION (Inches) : GRAVEL PACK: TRASK' MEAN MEDIAN SORTING SKEWNESS KURTOSIS 0.0784 0.0783 1.6835 0.7740 0.2551 Inches 0.0070 0.0061 0.0054 0.0046 0.0031 0.0016 0.0006 0.0003 0.0002 FOlK- 4.2218 3.6757 1.6477 0.5390 1.5093 phi 2.4907 2.6914 2.8786 3.1090 3.6757 4.6119 6.1132 7.0067 8.0255 0.3608 0.0609 0.0024 2W40 MOMEfW* 4.3570 3.6757 1.6828 1.3765 4.1280 . COMPUTED USING MilliMETER VAlUES - COMPUTED USING PHI VAlUES Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point 25 20- ¡¡ ;: 15 u c II ::I ~ 10 II. GRAVEL VCRS so CAS so MED SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT ClAY 5 - o 10 MESH 5 6 7 8 10 12 14 16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 170 200 230 270 325 400 500 k ~1J@j~ ~ ð\ Core Lmi lac..~ EXTENDED RANGE PARTS/ZSM ANAL YS/S Laser Partslz.... Distribution : t ~ -- ~ i ! !-¡ : =' ~ ~. ; - ii~ : r:¡A ! · t .... ~ ~ ---- " . ~ ~ . : _~~"':\ol : ,'$P;I,: · ¡ l' . ---t- ;----:-----:m~ ~11n,i ~I : : : : 'ti'~- · . . . f . t, ,. II ....þ............. .L~ 11..., .. FileNo. : Date: Depth : Sample: 65 ..... E · · · · .. . ~~t 0.1 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION PHI -2.00 -1.75 -1.50 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 INCH 0.1575 0.1323 0.1114 0.0937 0.0787 0.0661 0.0555 0.0469 0.0394 0.0335 0.0280 0.0236 0.0197 0.0165 0.0138 0.0117 0.0098 0.0083 0.0070 0.0058 0.0049 0.0041 0.0035 0.0029 0.0024 0.0021 0.0017 0.0015 0.0014 0.0010 0.0009 0.0007 0.0006 0.0005 0.0004 0.0003 0.0003 0.0002 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.??oo 0.??oo 0.??oo 0.??oo 0.??oo MM 4.??oo 3.3600 2.8300 2.3800 2.??oo 1.6800 1.4100 1.1900 1.??oo 0.8500 0.7100 0.6000 0.5000 0.4200 0.3500 0.2970 0.2500 0.2100 0.1770 0.1490 0.1250 0.1050 0.0880 0.0740 0.0620 0.0530 0.0440 0.0370 0.0310 0.0280 0.0220 0.0190 0.0160 0.0130 0.0110 0.0093 0.0078 0.0065 0.0055 0.0046 0.0039 0.0033 0.0028 0.0023 0.0019 0.0016 0.0014 0.0012 0.0010 SEP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 1.5 4.4 8.6 12.9 15.7 15.9 13.2 9.0 4.9 2.0 0.5 0.3 0.2 0.3 0.7 1.0 1.2 1.2 1.0 0.9 0.7 0.6 0.5 0.4 0.4 0.4 0.4 0.3 0.3 0.2 0.2 0.1 SEP CUM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 1.7 6.1 14.7 27.6 43.3 59.2 72.4 81.5 86.4 88.3 88.8 89.1 89.4 89.7 90.3 91.4 92.5 93.7 94.7 95.5 96.2 96.8 97.3 97.7 98.1 98.5 98.9 99.2 99.5 99.7 99.9 100.0 0.0 0.0 0.0 0.2 27.4 53.9 7.7 2.2 4.2 2.1 2.3 PERCENTILES: ---.--.-------.- ...r-~~v~" 0.01 .. . HOU-050228 April 8, 2005 3801.70 99AH . _ _ _ ... . 100 @B~y --- 80 o c -~- 60 ~ ã i 40- £, 20 o 0.001 SORTING PARAMETERS mm 5 10 16 25 50 75 84 90 95 0.1852 0.1643 0.1465 0.1298 0.0979 0.0706 0.0573 0.0205 0.0088 SURFACE AREA (1II"2Icc): STD DEVIATION (mm) : STD DEVIATION (IncheS) : GRAVEL PACK: MEAN MEDIAN SORTING SKEWNESS KURTOSIS TRASK" 0.1002 0.0979 1.3562 0.9568 0.2060 Inches 0.0073 0.0065 0.0058 0.0051 0.0039 0.0028 0.0023 0.0008 0.0003 FOLK- 3.4160 3.3531 1.0055 0.3607 2.0525 phi 2.4325 2.8059 2.7706 2.9454 3.3531 3.8245 4.1244 5.6094 6.8349 0.2049 0.0446 0.0018 20140 MOMENT*" 3.8068 3.3531 1.3138 2.2542 8.2798 . COMPUTED USING MILLIMETER VALUES - COMPUTED USING PHI VALUES Kerr-McGee 011 & Gas Corporation A\ FileNo. : HOU-050228 Kigun 01 Date: April 8, 2005 NW Milne Point Depth : 3802.65 Core Lab ....---- Sample: 102 AH EXTENDED RANGE PARTS/2SM ANAL YS/S Laser Partslz om Distribution 25 k~1J~~ · · ..... . - - ..... 100 · · · · · · . . @~ ")1 :~ · ~ ~ · · · .. ·~~~t · · · @i · 20 ~-"-~ · · -----...... ~-~_._,- -80 · , . · · · · · @) ~ · · · · · · ~ · · ~ · · 0 · · · · c -; 15 · · · · 60 3 " · r~J · u · · c c · · ã GI · · ~ · i · 40! ~ 10 · · " .' I I&. · d · £ · · · 1: · t~i · T\I 5 · !It 20 --------.------_. 11 · · !" · .w ¡"" · _ . · L ,; ~~. ~ . · .1"'1If"~-' : 0 .....r-...._.. .~ . IU . 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORßNG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1515 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAVEL 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.2022 0.0080 2.3060 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1761 0.0069 2.5052 20 0.25 0.0335 0.8500 0.0 0.0 l' 0.1592 0.0063 2.6513 25 0.50 0.0280 0.7100 0.0 0.0 25 0.1391 0.0055 2.8456 30 0.75 0.0236 0.6000 0.0 0.0 50 0.1019 0.0040 3.2949 CASSO 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0714 0.0028 3.8079 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0571 0.0022 4.1312 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0208 0.0008 5.5867 MED 50 1.75 0.0117 0.2970 0.0 0.0 9S 0.0087 0.0003 8.8422 SAND 60 2.00 0.0098 0.2500 0.7 0.7 0.7 70 2.25 0.0083 0.2100 2.9 3.6 80 2.50 0.0070 0.1770 6.1 9.7 FINE 100 2.75 0.0058 0.1490 9.9 19.6 SURFACE AREA (m^2Icc) : 0.2018 SAND 120 3.00 0.0049 0.1250 13.1 32.0 32.7 140 3.25 0.0041 0.1050 14.7 47.4 170 3.50 0.0035 0.0880 14.1 61.6 VFINE 200 3.75 0.0029 0.0740 11.7 73.2 STD DEVIATION (mm): 0.0511 SAND 230 4.00 0.0024 0.0620 8.2 48.7 81.4 270 4.25 0.0021 0.0530 4.7 86.1 325 4.50 0.0017 0.0440 2.1 86.3 CAS 400 4.75 0.0015 0.0370 0.6 86.9 STD DEVIATION (Inches) : 0.0020 SILT 500 5.00 0.0014 0.0310 0.4 7.8 89.2 5.25 0.0010 0.0260 0.2 89.5 5.50 0.0009 0.0220 0.3 89.7 GRAVEL PACK : 20140 MED 5.75 0.0007 0.0190 0.7 90.4 SILT 6.00 0.0006 0.0160 1.0 2.2 91.4 8.25 0.0005 0.0130 1.1 92.5 8.50 0.0004 0.0110 1.1 93.7 TRASK" FOLK" MOMENT** FINE 6.75 0.0003 0.0093 1.0 94.7 SILT 7.00 0.0003 0.0078 0.9 4.1 95.5 MEAN 0.1053 3.3591 3.7479 7.25 0.0002 0.0065 0.7 96.2 MEDIAN 0.1019 3.2949 3.2949 7.50 0.0002 0.0055 0.6 96.8 SORTING 1.3959 1.0573 1.3443 VFINE 7.75 0.0002 0.0046 0.5 97.3 SKEWNESS 0.9568 0.3471 2.1679 SILT 8.00 0.0001 0.0039 0.4 2.2 97.7 KURTOSIS 0.2180 1.9319 7.9284 8.25 0.0001 0.0033 0.4 98.1 8.50 0.0001 0.0028 0.4 98.5 8.75 0.0001 0.0023 0.4 98.9 9.00 0.??oo 0.0019 0.3 99.2 9.25 0.??oo 0.0016 0.3 99.5 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 0.2 99.7 .. COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.2 99.9 CLAY 10.00 0.??oo 0.0010 0.1 2.3 100.0 Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point 25 20 1 ;: 15 u c . :I ~ 10 u.. GRAVEL VCRS so CRS so MEO SAND FINE SAND VFINE SAND CAS SILT MED SILT FINE SILT VFINE SILT CLAY ~ ð\ Core lBIi .nt.....~ File No.: Date: Depth : Sample: HOU-050228 April 8, 2005 3803.50 104 AH EXTENDED RANGE PARTS/Z8M ANAL YS/S Laser Partslz'" Distribution ~~J~ 100 5 , . · . · . -i ~ LU~ ..~ ~l i ~~ ---~- ----- . · . · . : ;r - ~ -~...~ · r=' : J~ ---+----: ~----. JI1: ~ ( : : : . ~....~.¡ ¡ · . . _. i.. · . I ~ I . . . . .. . . . Ii.. . . Ii ~ . . '4 -"--~) .' II o 0.001 80 ----------~-- · · · · · ------~-----:--~-~-.--- 60 --~----- o c 3 c ¡ 40! £, ;¿r ~~f 'I iL 1ft J¡. ¡II....I"" 20 " ~ ~ ~ f' ' Ii ~. ~ I 0.01 .....- o 10 0.1 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15/:> 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1885 0.0074 2.4071 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1640 0.0065 2.6081 20 0.25 0.0335 0.8500 0.0 0.0 16 0.1443 0.0057 2.7930 25 0.50 0.0280 0.7100 0.0 0.0 25 0.1237 0.0049 3.0148 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0868 0.0034 3.5258 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0557 0.0022 4.1668 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0348 0.0014 4.8458 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0121 0.0005 6.3686 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0058 0.0002 7.4361 60 2.00 0.0098 0.2500 0.2 0.2 0.2 70 2.25 0.0083 0.2100 1.9 2.1 80 2.50 0.0070 0.1770 4.4 6.6 100 2.75 0.0058 0.1490 7.4 14.0 SURFACE AREA (m^2Icc) : 0.2670 120 3.00 0.0049 0.1250 10.2 24.0 24.2 140 3.25 0.0041 0.1050 12.1 38.4 170 3.50 0.0035 0.0880 12.6 49.0 200 3.75 0.0029 0.0740 11.7 60.7 STD DEVIATION (nvn) : 0.0548 230 4.00 0.0024 0.0620 9.5 48.0 70.2 270 4.25 0.0021 0.0530 6.8 77.0 325 4.50 0.0017 0.0440 4.3 81.3 400 4.75 0.0015 0.0370 2.3 83.6 STD DEVIATION (Inches): 0.0022 500 5.00 0.0014 0.0310 1.1 14.5 84.7 5.25 0.0010 0.0260 0.8 85.3 5.50 0.0009 0.0220 0.6 86.0 GRAVEL PACK : 20140 5.75 0.0007 0.0190 0.9 86.8 6.00 0.0006 0.0160 1.2 3.3 88.0 6.25 0.0005 0.0130 1.4 89.4 6.50 0.0004 0.0110 1.4 90.8 TRASK" FOLK- MOMENT- 6.75 0.0003 0.0093 1.3 92.1 7.00 0.0003 0.0078 1.2 5.3 93.3 MEAN 0.0897 3.7215 4.0638 7.25 0.0002 0.0065 1.0 94.4 MEDIAN 0.0868 3.5258 3.5258 7.50 0.0002 0.0055 0.9 95.2 SORTING 1.4908 1.2752 1.4934 7.75 0.0002 0.0048 0.8 96.0 SKEWNESS 0.9138 0.4206 1.7323 8.00 0.0001 0.0039 0.7 3.4 96.7 KURTOSIS 0.2240 1.7890 5.6972 8.25 0.0001 0.0033 0.6 97.3 8.50 0.0001 0.0028 0.6 97.9 8.75 0.0001 0.0023 0.5 98.4 9.00 0.??oo 0.0019 0.5 98.9 9.25 0.??oo 0.0016 0.4 99.3 . COMPUTED USING MilliMETER VALUES 9.50 0.??oo 0.0014 0.3 99.6 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.2 99.9 10.00 0.??oo 0.0010 0.1 3.3 100.0 Kerr-McGee 011 & Gas Corporation ~ FileNo. : HOU-050228 Kigun 01 ~ Date: April 8. 2005 NW Milne Point Depth : 3804.65 Core Lab Sample: 107 AH - .....- EXTENDED RANGE PARTSIZSII ANAL YSIS Laser Partslz.... DIstribution 25 ~~J~- , ~ . .. _ _ .. . . 100 · · . .. . · · .. ~~DY · ~ · ~ ~ .. · · ·~~~t · · · · @Á) 20 · · -"----_._- 80 · I · · · ~ ~ · · ¡: · I ~ ~ 0 · I c ....15 · · 60 3 ~ " c c ã " ~ <" ~ 10 40~ II.. $, 5 20 0 ..... ....-.. .. .1..... ~..'..I 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 ·2.00 0.1 biD 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAVEL 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.2004 0.0079 2.3193 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1740 0.0068 2.5232 20 0.25 0.0335 0.8500 0.0 0.0 16 0.1551 0.0061 2.6888 25 0.50 0.0280 0.7100 0.0 0.0 25 0.1344 0.0053 2.8951 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0956 0.0038 3.3862 CAS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0639 0.0025 3.9674 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0488 0.0019 4.3567 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0162 0.0006 5.9449 MEO 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0071 0.0003 7.1378 SAND 60 2.00 0.0098 0.2500 0.6 0.6 0.6 70 2.25 0.0083 0.2100 2.8 3.3 80 2.50 0.0070 0.1770 5.7 9.0 FINE 100 2.75 0.0058 0.1490 8.9 17.9 SURFACE AREA (m^2Icc) : 0.2297 SAND 120 3.00 0.0049 0.1250 11.6 29.0 29.6 140 3.25 0.0041 0.1050 13.2 42.8 170 3.50 0.0035 0.0880 13.2 55.9 VFINE 200 3.75 0.0029 0.0740 11.6 67.5 STD DEVIATION (nvn) : 0.0531 SAND 230 4.00 0.0024 0.0620 9.0 46.9 76.4 270 4.25 0.0021 0.0530 6.0 82.4 325 4.50 0.0017 0.0440 3.4 65.8 CAS 400 4.75 0.0015 0.0370 1.5 87.3 STD DEVIATION (Inches) : 0.0021 SILT 500 5.00 0.0014 0.0310 0.5 11.4 87.8 5.25 0.0010 0.0260 0.2 88.0 5.50 0.0009 0.0220 0.4 88.4 GRAVEL PACK : 20140 MED 5.75 0.0007 0.0190 0.7 89.1 SIlT 6.00 0.0006 0.0160 1.0 2.3 90.1 6.25 0.0005 0.0130 1.2 91.3 6.50 0.0004 0.0110 1.2 92.5 TRASK" FOLK- MOMENT*" FINE 6.75 0.0003 0.0093 1.1 93.6 SILT 7.00 0.0003 0.0078 1.0 4.5 94.6 MEAN 0.0992 3.4773 3.8726 7.25 0.0002 0.0065 0.8 95.4 MEDIAN 0.0956 3.3862 3.3862 7.50 0.0002 0.0055 0.7 96.1 SORTING 1.4501 1.1470 1.4197 VFINE 7.75 0.0002 0.0046 0.6 96.7 SKEWNESS 0.9394 0.3605 1.9680 SIlT 8.00 0.0001 0.0039 0.5 2.7 97.2 KURTOSIS 0.2235 1.8416 6.8645 8.25 0.0001 0.0033 0.5 97.7 8.50 0.0001 0.0028 0.5 982 8.75 0.0001 0.0023 0.5 98.7 9.00 0.??oo 0.0019 0.4 99.1 9.25 0.??oo 0.0016 0.3 99.4 . COMPUTED USING MILLIMETER VAlUES 9.50 0.??oo 0.0014 0.3 99.7 - COMPUTED USING PHI VAlUES 9.75 0.??oo 0.0012 0.2 99.9 CLAY 10.00 0.??oo 0.0010 0.1 2.8 100.0 Kerr-McGee 011 & Gas Corporation -" FileNo. : HOU-050228 Kigun 01 Date: April 8. 2005 NW Milne Point Depth : 3805.55 Core lIIIÌ Sample: 110 AH -- ....... EXTENDED RANGE PARTS/2SM ANAL YS/S Laser Partslz om Distribution 25 ~~~J~ - · · ~ · . --. . 100 · · · .=~~e~y · · · · ~ · ~ · ~ · · · · · ~ · @ 20 " · · 80 · I · · · « @J» · ~ · · ¡ · ~ · ~ 0 · · c ......15 · · -60 3 ~ " -------. c: c i tI ::s i l10 -40-- II. £. 5 20 0 ..... .....-... ... I..I~., I 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAlN SIZE DISTRIBUTION SORßNG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1575 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAvel 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1588 0.0063 2.8547 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1371 0.0054 2.8663 20 0.25 0.0335 0.8500 0.0 0.0 16 0.1200 0.0047 3.0595 25 0.50 0.0280 0.7100 0.0 0.0 25 0.1023 0.0040 3.2898 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0696 0.0027 3.8458 CAS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0385 0.0015 4.6998 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0156 0.0006 6.0024 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0083 0.0003 6.9066 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0043 0.0002 7.8548 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.3 0.3 80 2.50 0.0070 0.1770 1.9 2.2 FINE 100 2.75 0.0058 0.1490 4.3 6.5 SURFACE AREA (m^2Icc) : 0.3445 SAND 120 3.00 0.0049 0.1250 7.1 13.6 13.6 140 3.25 0.0041 0.1050 9.6 23.2 170 3.50 0.0035 0.0880 11.3 34.4 VFINE 200 3.75 0.0029 0.0740 11.6 46.1 STD DEVIATION (nvn): 0.0522 SAND 230 4.00 0.0024 0.0620 10.6 43.1 56.7 270 4.25 0.0021 0.0530 8.7 65.4 325 4.50 0.0017 0.0440 6.3 71.7 CRS 400 4.75 0.0015 0.0370 4.2 75.9 STD DEVIATION (Inches): 0.0021 SILT 500 5.00 0.0014 0.0310 2.5 21.7 78.4 5.25 0.0010 0.0280 1.6 79.9 5.50 0.0009 0.0220 1.2 81.1 GRAVEL PACK: 40160 MED 5.75 0.0007 0.0190 1.2 82.4 SILT 6.00 0.0006 0.0160 1.4 5.4 83.8 8.25 0.0005 0.0130 1.6 85.4 8.50 0.0004 0.0110 1.8 87.2 TRASK' FOLK- MOMENT"" FINE 8.75 0.0003 0.0093 1.8 88.9 SILT 7.00 0.0003 0.0078 1.7 6.8 90.8 MEAN 0.0704 4.3025 4.4571 7.25 0.0002 0.0065 1.5 92.1 MEDIAN 0.0696 3.8458 3.8458 7.50 0.0002 0.0055 1.3 93.4 SORTING 1.6300 1.5236 1.5717 VFINE 7.75 0.0002 0.0046 1.2 94.8 SKEWNESS 0.8135 0.5038 1.4051 SILT 8.00 0.0001 0.0039 1.0 5.0 95.8 KURTOSIS 0.2475 1.5117 4.3409 8.25 0.0001 0.0033 0.9 96.5 8.50 0.0001 0.0028 0.8 97.3 8.75 0.0001 0.0023 0.7 98.0 9.00 0.??oo 0.0019 0.6 98.8 9.25 0.??oo 0.0016 0.5 99.1 . COMPUTED USING MILLIMETER VAlUES 9.50 0.??oo 0.0014 0.4 99.5 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.3 99.8 ClAY 10.00 0.??oo 0.0010 02 4.4 100.0 Kerr-McGee 011 & Gas Corporation & FileNo. : HOU-050228 Kigun 01 Date: April 8, 2005 NW Milne Point Depth : 3806.50 Con! LIII:i ........~ Sample: 112 AH EXTENDED RANGE PARTS/Z8M ANAL YS/S Laser Partslz .... Distribution 25 b~~J~- , ~""00 ~ ~ ~ ~[j~t ~ ~hlY 20 ~ 80 r · 0 · ~ ~ 0 · 0 ~ · ~ [!!). 0 0 · 0 c .....15 · 0 ~60 3 ~ . 0 c c 0 i tI 0 ::I 0 <" ~ 10 . -40 ~ .. u. 0 P- o 0 0 0 5 0 ~20 .. 0 · · . 0 0 · 0 0 0 · . ~i....__ ,. · .....' 0 ..... .....-... 0 10 0.1 0.Q1 0.001 Particle Diameter (mm) GRAIN SIZE DISTRI81JT1ON SORßNG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1:'15 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 peRceNTILES: GRAvel 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1359 0.0053 2.8798 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1155 0.0045 3.1144 20 0.25 0.0335 0.8500 0.0 0.0 16 0.0998 0.0039 3.3250 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0835 0.0033 3.5824 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0534 0.0021 4.2274 CASSO 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0179 0.0007 5.8078 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0085 0.0003 6.8816 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0052 0.0002 7.5890 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0031 0.0001 8.3419 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.0 0.0 80 2.50 0.0070 0.1770 0.6 0.6 FINE 100 2.75 0.0058 0.1490 2.1 2.7 SURFACE AREA (m^2Icc) : 0.4894 SAND 120 3.00 0.0049 0.1250 4.2 6.9 6.9 140 3.25 0.0041 0.1050 6.5 13.4 170 3.50 0.0035 0.0880 8.5 21.9 VFINE 200 3.75 0.0029 0.0140 9.7 31.6 STD DEVIATION (nun) : 0.0457 SAND 230 4.00 0.0024 0.0620 9.8 34.5 41.4 270 4.25 0.0021 0.0530 9.0 50.4 325 4.50 0.0017 0.0440 7.5 57.8 CAS 400 4.75 0.0015 0.0370 5.7 63.5 STD DEVIATION (Inches): 0.0018 SILT 500 5.00 0.0014 0.0310 4.0 26.1 67.5 5.25 0.0010 0.0260 2.8 70.3 5.50 0.0009 0.0220 2.1 72.4 GRAVEL PACK : 40160 MED 5.75 0.0007 0.0190 1.8 74.3 SILT 6.00 0.0006 0.0160 1.9 8.6 76.2 6.25 0.0005 0.0130 2.0 78.2 6.50 0.0004 0.0110 2.2 80.4 TRASK' FOLK- MOMENT'" FINE 6.75 0.0003 0.0093 2.3 82.7 SILT 7.00 0.0003 0.0078 2.3 8.9 85.1 MEAN 0.0507 4.8114 4.9517 7.25 0.0002 0.0065 2.2 87.3 MEDIAN 0.0534 4.2274 4.2274 7.50 0.0002 0.0055 2.1 89.4 SORTING 2.1625 1.7168 1.7075 VFINE 7.75 0.0002 0.0046 1.9 91.2 SKEWNESS 0.5229 0.4995 1.0041 SILT 8.00 0.0001 0.0039 1.7 7.9 92.9 KURTOSIS 0.2976 1.0059 3.0558 8.25 0.0001 0.0033 1.5 94.4 8.50 0.0001 0.0028 1.3 95.7 8.75 0.0001 0.0023 1.1 96.9 9.00 0.??oo 0.0019 1.0 97.8 9.25 0.??oo 0.0016 0.8 98.6 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 0.6 99.3 .. COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.5 99.8 Cl.A y 10.00 0.??oo 0.0010 0.2 7.1 100.0 Kerr-McGee 011 & Gas Corporation ~, File No.: HOU-050228 Kigun 01 Date: April 8. 2005 NW Milne Point Depth : 3807.70 Core I..I!Ib Sample: 115 AH ................. EXTENDED RANGE PARTSIZSM ANAL YSIS Laser Partslz om Distribution 25 k~~J~- t · I k~~t . . 100 · · · · '13 · ~ · ~ · · @ · · ~ 20 · · 80 , · · · 19I · ~ · · l15 · ~ · ~ 0 · · c · · 3 ~ · 60 c c ã GI :I <" ~ 10 CD 40..... I&. £ 5 20 0 .... . . . .... . . ... .. n~o 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DlSTRIBUTlON SORl1NG PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1575 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAVEL 10 -1.00 0.0187 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1080 0.0043 3.2106 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0879 0.0035 3.5072 20 0.25 0.0335 0.8500 0.0 0.0 16 0.0733 0.0029 3.7702 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0575 0.0023 4.1198 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0215 0.0008 5.5393 CAS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0066 0.0003 7.2529 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0043 0.0002 7.8611 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0031 0.0001 8.3464 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0020 0.0001 8.9519 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.0 0.0 60 2.50 0.0070 0.1770 0.0 0.0 FINE 100 2.75 0.0058 0.1490 0.7 0.7 SURFACE AREA (m^2Icc): 0.8463 SAND 120 3.00 0.0049 0.1250 1.7 2.4 2.4 140 3.25 0.0041 0.1050 3.1 5.5 170 3.50 0.0035 0.0880 4.5 10.0 VFINE 200 3.75 0.0029 0.0740 5.7 15.6 STD DEVIATION (nun) : 0.0345 SAND 230 4.00 0.0024 0.0620 6.3 19.5 21.9 270 4.25 0.0021 0.0530 6.3 28.1 325 4.50 0.0017 0.0440 5.7 33.9 CAS 400 4.75 0.0015 0.0370 4.9 38.8 STD DEVIATION (Inches): 0.0014 SILT 500 5.00 0.0014 0.0310 4.1 21.0 42.9 5.25 0.0010 0.0260 3.5 46.4 5.50 0.0009 0.0220 3.1 49.5 GRAVEL PACK: NIA MEa 5.75 0.0007 0.0190 3.1 52.6 SIlT 6.00 0.0006 0.0160 3.2 12.9 55.8 6.25 0.0005 0.0130 3.5 59.3 6.50 0.0004 0.0110 3.8 63.1 TRASK' FOLK" MOMENT"" FINE 6.75 0.0003 0.0093 4.0 67.1 SILT 7.00 0.0003 0.0078 4.1 15.4 71.2 MEAN 0.0320 5.7236 5.8734 7.25 0.0002 0.0065 4.0 75.2 MEDIAN 0.0215 5.5393 5.5393 7.50 0.0002 0.0055 3.8 79.0 SORTING 2.9620 1.8926 1.8439 VFINE 7.75 0.0002 0.0046 3.6 82.6 SKEWNESS 0.8156 0.1619 0.3010 SILT 8.00 0.0001 0.0039 3.3 14.7 85.9 KURTOSIS 0.3002 0.7510 1.9603 8.25 0.0001 0.0033 2.9 88.8 8.50 0.0001 0.0028 2.6 91.4 8.75 0.0001 0.0023 2.2 93.7 9.00 0.??oo 0.0019 1.9 95.6 9.25 0.??oo 0.0016 1.6 97.1 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 1.3 98.4 .. COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 1.1 99.4 ClAY 10.00 0.??oo 0.0010 0.6 14.1 100.0 Kerr-McGee 011 & Gas Corporation ~, FileNo. : HOU-050228 Kigun 01 Date: April 8. 2005 NW Milne Point Depth : 3808.50 Can! lBI:Í -- Sample: 118 AH EXTENDED RANGE PARTSIZ- ANALYSIS Laser Partslz om Distribution 25 k~1~ , ~ : --... 100 · · · ~8tay · ~ · ~ ~ · · · · @ 20 " · 80 · I · · · ~ ~ · · ~ · · ~ æl. 0 · · c .....15 · · 60 3 l;' " · · c i i ::I <" ~ 10 CD 40-- II. ~ 5 -20 · · · · · · · · · . . . .~ .-..;..- 0 ...... ....... 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15(:1 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAvel 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 ~.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 ~.50 0.0555 1.4100 0.0 0.0 16. ~25 0.0469 1.1900 0.0 0.0 5 0.1720 0.0068 2.5395 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1475 0.0058 2.7608 20 025 0.0335 0.8500 0.0 0.0 16 0.1298 0.0051 2.9461 25 0.50 0.0280 0.7100 0.0 0.0 25 0.1106 0.0044 3.1771 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0747 0.0029 3.7426 CRSSO 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0430 0.0017 4.5410 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0186 0.0007 5.7508 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0090 0.0004 6.8026 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0045 0.0002 7.8085 SAND 80 2.00 0.0098 02500 0.0 0.0 0.0 70 225 0.0083 02100 1.0 1.0 80 2.50 0.0070 0.1770 3.0 4.0 FINE 100 2.75 0.0058 0.1490 5.5 9.5 SURFACE AREA (mA2Icc) : 0.3260 SAND 120 3.00 0.0049 0.1250 8.1 17.6 17.6 140 325 0.0041 0.1050 10.2 27.8 170 3.50 0.0035 0.0880 11.4 392 VFINE 200 3.75 0.0029 0.0740 11.3 50.6 STD DEVIATION (nvn): 0.0556 SAND 230 4.00 0.0024 0.0620 10.1 43.0 60.6 270 425 0.0021 0.0530 8.0 68.7 325 4.50 0.0017 0.0440 5.8 74.4 CRS 400 4.75 0.0015 0.0370 3.7 78.2 STD DEVIATION (Inches): 0.0022 SILT 500 5.00 0.0014 0.0310 2.2 19.7 80.4 525 0.0010 0.0260 1.4 81.7 5.50 0.0009 0.0220 1.0 82.8 GRAVEL PACK : 20140 MED 5.75 0.0007 0.0190 1.1 83.8 SILT 6.00 0.0006 0.0160 1.3 4.7 85.1 6.25 0.0005 0.0130 1.4 86.5 8.50 0.0004 0.0110 1.6 88.1 TRASK· FOLK" MOMENT"" FINE 6.75 0.0003 0.0093 1.6 89.7 SILT 7.00 0.0003 0.0078 1.5 6.1 912 MEAN 0.0768 4.1465 4.3352 7.25 0.0002 0.0065 1.4 92.5 MEDIAN 0.0747 3.7426 3.7426 7.50 0.0002 0.0055 1.2 93.7 SORTING 1.8043 1.4995 1.5758 VFINE 7.75 0.0002 0.0046 1.1 94.8 SKEWNESS 0.8510 0.4877 1.4714 SILT 8.00 0.0001 0.0039 0.9 4.6 95.8 KURTOSIS 0.2439 1.5834 4.6055 8.25 0.0001 D.D033 0.8 96.6 8.50 0.0001 0.0028 0.8 97.4 8.75 0.0001 0.0023 0.7 98.1 9.00 0.??oo 0.0019 0.6 98.6 925 0.??oo 0.0016 0.5 99.1 . COMPUTED USING MIWMETER VALUES 9.50 0.??oo 0.0014 0.4 99.5 "COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.3 99.9 CLAY 10.00 0.??oo 0.0010 0.1 4.2 100.0 Kerr-McGee Oil & Gas Corporation A File No.: HOU-050228 Kigun 01 Date: April 8, 2005 NW Milne Point Depth : 3809.40 Core lBIÌ -- ......... Sample: 120 AH EXTENDED RANGE PARTS/28M ANAL YS/S Laser Partslz am Distribution 25 ~~~~- · ~ i . . 100 · · · '1:9J ~ ~ ~Mt · · ~ ~ ~ 20 " 80 · , · @I ~ · ~ · ~ ~ 0 · c: .....15 · 60 3 ß' " · c: c: · i . · ~ · <" l10 · · 40.! " · I&. · · £ · · · · · I · · · 5 · · · 20 · · · · · · · · · · · · J~o · · · · I · . 0 .........-......4...~ 10 0.1 0.01 0.001 Particle Diameter (mm) GRAlN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15(:' 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAVel 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 '{).75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 '{).5O 0.0555 1.4100 0.0 0.0 16 '{)25 0.0469 1.1900 0.0 0.0 5 0.0717 0.0028 3.8027 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0576 0.0023 4.1179 20 025 0.0335 0.8500 0.0 0.0 16 0.0470 0.0018 4.4122 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0361 0.0014 4.7903 30 0.75 0.0236 0.8000 0.0 0.0 50 0.0193 0.0008 5.6950 CAS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0079 0.0003 6.9918 40 125 0.0165 0.4200 0.0 0.0 84 0.0049 0.0002 7.6587 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0034 0.0001 8.1902 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0022 0.0001 8.7968 SAND 60 2.00 0.0098 02500 0.0 0.0 0.0 70 225 0.0083 0.2100 0.0 0.0 80 2.50 0.0070 0.1770 0.0 0.0 FINE 100 2.75 0.0058 0.1490 0.0 0.0 SURFACE AREA (mA2Icc): 0.7988 SAND 120 3.00 0.0049 0.1250 0.0 0.0 0.0 140 3.25 0.0041 0.1050 0.6 0.6 170 3.50 0.0035 0.0880 1.3 2.0 VFINE 200 3.75 0.0029 0.0740 2.4 4.3 STD DEVIATION (nvn): 0.0210 SAND 230 4.00 0.0024 0.0620 3.5 7.7 7.8 270 4.25 0.0021 0.0530 4.5 12.3 325 4.50 0.0017 0.0440 5.5 17.8 CAS 400 4.75 0.0015 0.0370 6.2 24.0 STD DEVIATION (incheS): 0.0008 SILT 500 5.00 0.0014 0.0310 6.7 22.9 30.7 525 0.0010 0.0260 6.8 37.6 5.50 0.0009 0.0220 6.7 44.3 GRAVEL PACK : NIA MED 5.75 0.0007 0.0190 6.4 50.6 SILT 6.00 0.0006 0.0160 5.9 25.8 56.5 6.25 0.0005 0.0130 5.4 61.9 8.50 0.0004 0.0110 4.9 66.8 TRASK" FOLK- MOMENT** FINE 6.75 0.0003 0.0093 4.4 71.2 SILT 7.00 0.0003 0.0078 4.0 18.6 75.2 MEAN 0.0220 5.9220 6.0800 7.25 0.0002 0.0065 3.6 78.8 MEDIAN 0.0193 5.6950 5.6950 7.50 0.0002 0.0055 3.3 82.1 SORTING 2.1447 1.5683 1.5156 VFINE 7.75 0.0002 0.0046 3.1 852 SKEWNESS 0.7620 0.2260 0.4682 SILT 8.00 0.0001 0.0039 2.8 12.8 88.0 KURTOSIS 0.2610 0.9297 2.4636 825 0.0001 0.0033 2.5 90.5 8.50 0.0001 0.0029 2.3 92.8 8.75 0.0001 0.0023 2.0 94.8 9.00 0.??oo 0.0019 1.7 96.5 925 0.??oo 0.0016 1.4 97.8 . COMPUTED USING MIWMETER VALUES 9.50 0.??oo 0.0014 1.0 96.9 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.8 99.6 ClAY 10.00 0.??oo 0.0010 0.4 12.0 100.0 Kerr-McGee 011 & Gas Corporation ~ File No.: HOU-050228 Kigun 01 ð' Date: April 8, 2005 NW Milne Point Depth : 3810.70 Core I..BI:i Sample: 123 AH ...-.......... EXTENDED RANGE PARTS/ZSM ANAL YS/S Laser Partslz am Distribution 25 ~~~J~- , ~ ~ · , . . . 100 · · · ~õ~~~ · · · · ~ · ~ ~ · · · · @ 20 , · 80 · I · · ~ ~ · # · ~ æ1. 0 · c ;: 15 · 60 3 u c c i 411 ~ <" r 10 4Q.!. II. £ 5 20 0 ..... ....... ....jJ" uJIj I';'... _. __ 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15/11 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 ·1.25 0.0937 2.3800 0.0 0.0 PERCeNTILES: GRAVEL 10 ·1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1632 0.0064 2.6154 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1363 0.0054 2.8751 20 0.25 0.0335 0.8500 0.0 0.0 .16 0.1158 0.0046 3.1104 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0942 0.0037 3.4075 30 0.75 0.0236 0.8000 0.0 0.0 50 0.0539 0.0021 4.2124 CAS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0193 0.0008 5.6917 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0103 0.0004 6.6003 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0060 0.0002 7.3898 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0033 0.0001 8.2259 SAND 60 2.00 0.0098 0.2500 0.1 0.1 0.1 70 2.25 0.0083 0.2100 0.8 0.9 80 2.50 0.0070 0.1770 2.2 3.1 FINE 100 2.75 0.0058 0.1490 3.9 7.0 SURFACE AREA (m^2Icc): 0.4486 SAND 120 3.00 0.0049 0.1250 5.7 12.6 12.7 140 3.25 0.0041 0.1050 7.2 19.9 170 3.50 0.0035 0.0880 8.1 28.0 VFINE 200 3.75 0.0029 0.0740 8.2 36.2 STD DEVIATION (mm): 0.0527 SAND 230 4.00 0.0024 0.0620 7.7 31.2 43.9 270 4.25 0.0021 0.0530 6.8 50.7 325 4.50 0.0017 0.0440 5.7 56.5 CAS 400 4.75 0.0015 0.0370 4.8 61.3 STD DEVIATION (Inches) : 0.0021 SILT 500 5.00 0.0014 0.0310 4.1 21.5 65.4 5.25 0.0010 0.0260 3.6 69.0 5.50 0.0009 0.0220 3.3 72.3 GRAVEL PACK : 40160 MED 5.75 0.0007 0.0190 3.0 75.4 SILT 6.00 0.0006 0.0160 2.8 12.8 78.2 6.25 0.0005 0.0130 2.6 80.7 6.50 0.0004 0.0110 2.4 83.1 TRASK' FOLK" MOMENr' FINE 6.75 0.0003 0.0093 2.2 85.3 SILT 7.00 0.0003 0.0078 2.0 9.1 87.3 MEAN 0.0568 4.6410 4.8331 7.25 0.0002 0.0065 1.8 89.1 MEDIAN 0.0539 4.2124 4.2124 7.50 0.0002 0.0055 1.7 90.8 SORTING 2.2070 1.7225 1.7168 VFINE 7.75 0.0002 0.0046 1.6 92.3 SKEWNESS 0.6266 0.3996 0.8945 SILT 8.00 0.0001 0.0039 1.4 6.5 93.8 KURTOSIS 0.2873 1.0066 3.0411 8.25 0.0001 0.0033 1.3 95.1 8.50 0.0001 0.0028 1.2 96.3 8.75 0.0001 0.0023 1.0 97.3 9.00 0.??oo 0.0019 0.9 98.2 9.25 0.??oo 0.0016 0.7 98.9 . COMPUTED USING MIWMETER VALUES 9.50 0.??oo 0.0014 0.5 99.4 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.4 99.8 etA y 10.00 0.??oo 0.0010 0.2 6.2 100.0 Kerr-McGee Oil & Gas Corporation ~ FileNo. : HOU-050228 Kigun 01 ~ Date: April 8, 2005 NW Milne Point Depth : 3811.50 Core laIi --............ Sample: 126 AH EXTENDED RANGE PARTS/2- ANAL YS/S Laser Partslz.... Distribution 25 b~~J~ · i ~!~;. .'00 · · ~ · c¡g ~ · · @ @'j 20 · 80 I · · @I @I · ~ ~ ~ 0 c ......15 60 3 t' c c i GI · ::I · <" r 10 · 40.!.. · II. 111b..1 II. ~"."L ~ 5 20 0 ..... ........ _...¡r 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1515 4.??oo 0.0 0.0 8 -1.15 0.1323 3.3800 0.0 0.0 1 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0931 2.3800 0.0 0.0 PERCENTILES: GRAVEL 10 -1.00 0.0181 2.??oo 0.0 0.0 0.0 12 -0.15 0.0881 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 16 -0.25 0.0469 1.1900 0.0 0.0 5 0.1693 0.0061 2.5822 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.1439 0.0051 2.1964 20 0.25 0.0335 0.8500 0.0 0.0 16 0.1242 0.0049 3.0092 25 0.50 0.0280 0.1100 0.0 0.0 25 0.1046 0.0041 3.2564 30 0.15 0.0236 0.8000 0.0 0.0 50 0.0888 0.0021 3.8611 CRS SD 35 1.00 0.0191 0.5000 0.0 0.0 0.0 15 0.0363 0.0014 4.1821 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0188 0.0001 5.8936 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0086 0.0003 6.8638 MED 50 1.15 0.0111 0.2910 0.0 0.0 95 0.0045 0.0002 1.8010 SAND 60 2.00 0.0098 0.2500 0.1 0.1 0.1 10 2.25 0.0083 0.2100 0.9 1.0 80 2.50 0.0010 0.1110 2.1 3.1 FINE 100 2.15 0.0058 0.1490 4.8 8.5 SURFACE AREA (m^2Icc) : 0.3351 SAND 120 3.00 0.0049 0.1250 1.1 15.5 15.6 140 3.25 0.0041 0.1050 9.1 24.8 110 3.50 0.0035 0.0880 10.4 35.2 VFINE 200 3.15 0.0029 0.0140 10.8 45.8 STD DEVIATION (nvn): 0.0531 SAND 230 4.00 0.0024 0.0620 9.8 39.9 55.5 210 4.25 0.0021 0.0530 8.2 63.8 325 4.50 0.0011 0.0440 6.4 10.1 CRS 400 4.15 0.0015 0.0310 4.5 14.1 STD DEVIATION (Inches) : 0.0021 SilT 500 5.00 0.0014 0.0310 3.1 22.2 11.8 5.25 0.0010 0.0260 2.1 79.9 5.50 0.0009 0.0220 1.8 81.5 GRAVEL PACK: 40160 MED 5.75 0.0007 0.0190 1.4 82.9 SilT 6.00 0.0006 0.0160 1.5 6.6 84.4 6.25 0.0005 0.0130 1.6 86.0 8.50 0.0004 0.0110 1.6 87.6 TRASK" FOLK- MOMENT** FINE 8.75 0.0003 0.0093 1.8 89.2 SilT 7.00 0.0003 0.0078 1.8 6.4 90.8 MEAN 0.0705 4.2548 4.4399 7.25 0.0002 0.0065 1.5 92.3 MEDIAN 0.0888 3.8611 3.8611 7.50 0.0002 0.0055 1.3 93.6 SORTING 1.6968 1.5157 1.5730 VFINE 7.15 0.0002 0.0046 1.2 94.8 SKEWNESS 0.8038 0.4567 1.3251 SilT 8.00 0.0001 0.0039 1.0 5.0 95.8 KURTOSIS 0.2523 1.4088 4.2206 8.25 0.0001 0.0033 0.9 96.7 8.50 0.0001 0.0028 0.8 97.5 8.75 0.0001 0.0023 0.7 98.2 9.00 0.??oo 0.0019 0.8 98.8 9.25 0.??oo 0.0016 0.5 99.2 . COMPUTED USING MilliMETER VAlUES 9.50 0.??oo 0.0014 0.4 99.6 - COMPUTED USING PHI VAlUES 9.75 0.??oo 0.0012 0.3 99.9 ClAY 10.00 0.??oo 0.0010 0.1 4.2 100.0 Kerr-McGee 011 & Gas Corporation ~ FileNo. : HOU-050228 Kigun 01 ~ Date: April 8, 2005 NW Milne Point Depth : 3812.30 Con! lBb Sample: 128 AH "'"""-- EXTENDED RANGE PARTSIZSII ANAL YSIS Laser Partslz.... Distribution 25 k~~J~ - , ~ J , . . 100 · · · · · ~ ~ '? · ®~~t · · · @'Á) · 20 , , 80 · I · · ~ ~ · · · ¡ · ~ ~ · 0 · · c ..... 15 · · 60 3 ~ " · · · c c · · ã GI · · ::I · · <" ~ 10 · · 40 .!. , I II. · £ · · · · 5 · 20 · · I 0 ..... ........ . . . II . . . _J 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DISTRIBUTION SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.1b15 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILl:S: GRAvel 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 ~.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 ~.50 0.0555 1.4100 0.0 0.0 16 ~.25 0.0469 1.1900 0.0 0.0 5 0.0644 0.0025 3.9560 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0503 0.0020 4.3125 20 0.25 0.0335 0.8500 0.0 0.0 16 0.0396 0.0016 4.6583 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0296 0.0012 5.0760 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0148 0.0006 6.0797 CAS SD 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0061 0.0002 7.3674 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0040 0.0002 7.9561 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0029 0.0001 8.4202 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0020 0.0001 8.9931 SAND 60 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.0 0.0 80 2.50 0.0070 0.1770 0.0 0.0 FINE 100 2.75 0.0058 0.1490 0.0 0.0 SURFACE AREA (m^2Icc): 0.9527 SAND 120 3.00 0.0049 0.1250 0.0 0.0 0.0 140 3.25 0.0041 0.1050 0.4 0.5 170 3.50 0.0035 0.0880 1.0 1.4 VFINE 200 3.75 0.0029 0.0740 1.6 3.1 STD DEVIATION (nvn): 0.0178 SAND 230 4.00 0.0024 0.0620 2.4 5.5 5.5 270 4.25 0.0021 0.0530 3.3 8.8 325 4.50 0.0017 0.0«0 4.1 12.9 CAS 400 4.75 0.0015 0.0370 4.9 17.8 STD DEVIATION (lneMs): 0.0007 SILT 500 5.00 0.0014 0.0310 5.6 17.9 23.4 5.25 0.0010 0.0280 6.0 29.4 5.50 0.0009 0.0220 6.2 35.5 GRAVEL PACK : NIA MED 5.75 0.0007 0.0190 6.2 41.7 SILT 6.00 0.0006 0.0160 6.0 24.3 47.7 6.25 0.0005 0.0130 5.7 53.4 6.50 0.0004 0.0110 5.4 58.8 TRASK' FOLK" MOMENT- FINE 6.75 0.0003 0.0093 5.1 63.9 SILT 7.00 0.0003 0.0078 4.8 21.0 68.7 MEAN 0.0179 6.2314 6.3746 7.25 0.0002 0.0065 4.5 73.2 MEDIAN 0.0148 6.0797 6.0797 7.50 0.0002 0.0055 4.1 77.3 SORTING 2.2125 1.5876 1.5274 VFINE 7.75 0.0002 0.0046 3.8 81.1 SKEWNESS 0.8213 0.1474 0.2740 SILT 8.00 0.0001 0.0039 3.5 15.9 84.6 KURTOSIS 0.2488 0.9009 2.2933 8.25 0.0001 0.0033 3.2 87.8 8.50 0.0001 0.0028 2.9 90.7 8.75 0.0001 0.0023 2.5 93.2 9.00 0.??oo 0.0019 2.1 95.3 9.25 0.??oo 0.0016 1.7 97.1 . COMPUTED USING MILUMETER VALUES 9.50 0.??oo 0.0014 1.4 98.4 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 1.1 99.5 ClAY 10.00 0.??oo 0.0010 0.5 15.4 100.0 Kerr-McGee Oil & Gas Corporation A\ FileNo. : HOU-050228 Kigun 01 Date: April 8, 2005 NW Milne Point Depth : 3813.20 Core lBtÏ -~ Sample: 131 AH EXTENDED RANGE PARTSIZSII ANAL YSIS Laser PartslZ lID Distribution 25 ~~~J~- ~ . . 100 ~ ~ô~t 20 80 ¡¡ , 0 c: .....15 60 3 r; c: c: i GI ~ i ~ 10 40- I&. ~ · · 5 · · 20 · · · · · · · · · · · · 0 ..... . . . . _ . . iii . . . II .' 0 10 0.1 0.01 0.001 Particle Diameter (mm) GRAIN SIZE DlSTRISUßON SORTING PARAMETERS MESH PHI INCH MM SEP SEP CUM 5 -2.00 0.15/5 4.??oo 0.0 0.0 6 -1.75 0.1323 3.3600 0.0 0.0 7 -1.50 0.1114 2.8300 0.0 0.0 8 -1.25 0.0937 2.3800 0.0 0.0 PERCENTILES: GRAvel 10 -1.00 0.0787 2.??oo 0.0 0.0 0.0 12 -0.75 0.0661 1.6800 0.0 0.0 mm Inches phi 14 -0.50 0.0555 1.4100 0.0 0.0 18 -0.25 0.0469 1.1900 0.0 0.0 5 0.1075 0.0042 3.2178 VCRS so 18 0.00 0.0394 1.??oo 0.0 0.0 0.0 10 0.0806 0.0032 3.6322 20 0.25 0.0335 0.8500 0.0 0.0 16 0.0616 0.0024 4.0207 25 0.50 0.0280 0.7100 0.0 0.0 25 0.0443 0.0017 4.4964 30 0.75 0.0236 0.6000 0.0 0.0 50 0.0195 0.0008 5.6780 CAS so 35 1.00 0.0197 0.5000 0.0 0.0 0.0 75 0.0074 0.0003 7.0705 40 1.25 0.0165 0.4200 0.0 0.0 84 0.0047 0.0002 7.7325 45 1.50 0.0138 0.3500 0.0 0.0 90 0.0033 0.0001 8.2557 MED 50 1.75 0.0117 0.2970 0.0 0.0 95 0.0021 0.0001 8.8735 SAND 80 2.00 0.0098 0.2500 0.0 0.0 0.0 70 2.25 0.0083 0.2100 0.2 0.2 80 2.50 0.0070 0.1770 0.5 0.6 FINE 100 2.75 0.0058 0.1490 0.9 1.6 SURFACE AREA (m^2Icc) : 0.8146 SAND 120 3.00 0.0049 0.1250 1.5 3.1 3.1 140 3.25 0.0041 0.1050 2.2 5.3 170 3.50 0.0035 0.0880 2.9 8.1 VFINE 200 3.75 0.0029 0.0740 3.5 11.7 STD DEVIATION (mm) : 0.0285 SAND 230 4.00 0.0024 0.0620 4.1 12.7 15.8 270 4.25 0.0021 0.0530 4.5 20.3 325 4.50 0.0017 0.0440 4.8 25.2 CAS 400 4.75 0.0015 0.0370 5.0 30.2 STD DEVIATION (Inches) : 0.0011 SILT 500 5.00 0.0014 0.0310 5.1 19.5 35.3 5.25 0.0010 0.0260 5.2 40.5 5.50 0.0009 0.0220 5.2 45.7 GRAVEL PACK : NlA MEO 5.75 0.0007 0.0190 5.2 50.9 SILT 6.00 0.0006 0.0180 5.1 20.7 56.0 6.25 0.0005 0.0130 4.9 80.9 8.50 0.0004 0.0110 4.6 65.5 TRASK' FOLKH MOMENr* FINE 6.75 0.0003 0.0093 4.4 69.9 SILT 7.00 0.0003 0.0078 4.1 18.0 74.0 MEAN 0.0259 5.8104 5.9536 7.25 0.0002 0.0065 3.8 77.7 MEDIAN 0.0195 5.6780 5.6780 7.50 0.0002 0.0055 3.5 81.2 SORTING 2.4403 1.7849 1.7158 VFINE 7.75 0.0002 0.0046 3.2 84.4 SKEWNESS 0.8640 0.1185 0.2342 SILT 8.00 0.0001 0.0039 2.9 13.3 87.3 KURTOSIS 0.2382 0.9005 2.2918 8.25 0.0001 0.0033 2.6 89.9 8.50 0.0001 0.0028 2.3 92.2 8.75 0.0001 0.0023 2.1 84.3 9.00 0.??oo 0.0019 1.8 96.0 9.25 0.??oo 0.0018 1.4 97.5 . COMPUTED USING MILLIMETER VALUES 9.50 0.??oo 0.0014 1.1 98.6 - COMPUTED USING PHI VALUES 9.75 0.??oo 0.0012 0.9 99.5 CLAY 10.00 0.??oo 0.0010 0.5 12.7 100.0 · [ore Lab RESERVOIR OPTIMIZATION FIGURES for Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 This report is based entirely upon core samples, soils, solids, liquids, or gases, together with related observational data,provided solely by the client. The conclusions, inferences, deductions and opinions rendered herein reflect the examination, study and testing of these items, and represent the best judgement of Core Laboratories, LP. Any reliance on the information contained herein concerning the profitability or productivity on any well, sand, or drilling activity is at the sole risk of the client, and Core Laboratories, LP, neither extends nor makes any warranty or representation whatsoever with respect to same. This report has been prepared for the exclusive and confidential use of the client and no other party. PETROLEUM SERVICES DIVISION 6316 WINDFERN HOUSTON, TEXAS 77040 (713) 328-2565 FAX (713) 328-2567 Kerr-McGee Oil 8< Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 Permeability vs Porosity @ Various NCS 10000 =' + Routine Core Analysis (550 psig NCS) . Routine Core Analysis Measurements (1100 psig NCS - Mean Net Effective Stress) 1000 .a. Routine Core Analysis Measurements (1650 psig NCS) 1:: i:I Routine Core Analysis Measurements (2200 psig NCS) . Routine Core Analysis Measurements (2750 pSig NCS) 100 -;::: å Vertically Oriented Samples . . 10 ~ . >- . . :: :ö (1 .. CI! E ... CI! a. 0.1 . 0.01 0.001 o 5 10 15 20 25 30 35 40 Figure 1 Porosity (%) Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 I'trJ\1ILr.I1¡.¡sr!\\!Itrs Permeability vs Porosity @ 550 psig NCS 10000 1000 .. 100 Ô 10 .¡¡. g # .:; >- == .. :ö ell .. C E .... C Il. 0.1 0.01 0.001 o 5 10 15 20 25 30 35 40 Figure 2 Porosity (%) Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 N;T¡¡jjUtlH ~nmtrS Permeability vs Porosity @ 1100 psig NCS (Mean Net Effective Stress) 10000 Routine Core Analysis Measurements (1100 psig NCS - Mean Net Effective Stress) A Vertically Oriented Samples 1000 . 100 . 10 ê É.- ¡; :ë ttI (.) E ... (.) a. . II» 0.1 0.01 0.001 o 5 10 15 20 25 30 35 40 Figure 3 Porosity (%) Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 f'1"'f!U!ttUX!if)mtt>; Permeability vs Porosity @ 1650 psig NCS 10000 1000 it A 100 10 â §. >- :t:: :is (II Q) E ... Q) a. . ffL ~ 0.1 0.01 0.001 o 5 10 15 20 25 30 35 40 Figure 4 Porosity (%) Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 PrnmU:UKSTln'IŒS Permeability vs Porosity @ 2200 psig NCS 10000 1000 100 is' 10 5 ~ :õ 11 <!) E ... <!) Q. 0.1 0.01 0.001 o 5 10 15 20 25 30 35 40 Figure 5 Porosity (%) Kerr-McGee Oil 8< Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 HT1WlnH' sr~~¡tg Permeability vs Porosity @ 2750 psig NCS 10000 1000 !!III 100 10 ê 5 =ª' :ä (II () E .... () a. It ,.... '- . 0.1 0.01 0.001 o 5 10 15 20 25 30 35 40 Figure 6 Porosity (%) Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 (KI Ø) 0.5 vs Water Saturation @ 1100 psig NCS (Mean Net Effective Stress) 60 . . . . 50 . . I· . r. 40 . - - '" ci ~ 30 g . 20 10 . . 10 20 30 40 50 Stw (%) 60 70 80 90 100 Figure 7 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Mifne Point North Slope, Alaska Fife No.: HOU-050228 Date: July 12, 2005 i'l:rRfl1.tIlK $1'~Vltt$ Permeability vs Grain Density @ 1100 psig NCS (Mean Net Effective Stress) 10000 1000 . +T . . 100 . . ô g >- ~ :õ !'II ø E .... ø Q. 10 .. 0. . 0.1 0.01 0.001 2.65 2.70 2.75 2.80 Grain Density (glcc) 2.85 2.90 2.95 Figure 8 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 HTRDtflH\SnW¡crs Permeability vs Mean Grain Size @ 1100 psig NCS (Mean Net Effective Stress) 10000 ~ ,;. t ¢ I' A 1000 A 'v . 100 .;'t .. 3; ç 10 . . ê §. >- ~ :ä f!I Q) E ... (!) CI. 41'> t '" . 0.1 y = 3E_05x36706 R2 = 0.8276 0.01 0.001 0.00 20.00 40.00 60.00 80.00 100.00 120.00 Figure 9 Mean Grain Size (µ) o 30 -Total Gamma 60 90 120 150 0 3750 5 0 -~-_...,----~ Figure 10 ...... Kerr-McGee Oil & Gas Corporation Kigun 01 File No : HOU-050228 Spectral Core Gamma Scale 5" = 100' 3760 3770 3780 3790 3800 3810 3820 3830 3840 3850 3860 3870 3880 3890 -Potassium ('Yo) Uranium (ppm) 1 0 - Thorium (ppm) 30 Kerr McGee Oil 8< Gas Corporation File No.: HOU-050228 Kigun 01 Date: July 12, 2005 NW Milne Point Analyst(s): RP, MM North Slope, Alaska Cores: Conventional CORE ANALYSIS DATA Scale 5" = 100' -Kair (mD) -Seo (%) -Porosity (%) -Total Gamma -Slw(%) - Grain Density (glee) 10000 10 3700 ,,' , ,,' , 3710 3720 3730 3740 3750 3760 3770 3780 \ 3790 3800 3810 ""''' 3820 3830 3840 I ! I [" " . I 3850 . [ 0 30 60 0 40 80 100 2.0 2.5 3.0 Figure 11 Kerr-Mcgee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska PROBE PERMEABILITY MEASUREMENTS Scale: 5" '" 1 00 feel 10000 1000 0.1 0.01 3750 3760 3770 3780 3790 3800 3810 3820 3830 3840 3850 3860 3870 3880 3890 3900 100 10 Figure 12 File No.: HOU-050228 Date: April 13, 2005 Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska 1100 psig NCS (Mean Net Effective Stress) PERMEABILITY HISTOGRAM 100 - - - CUMULATIVE CAPACITY 90 80 70 * 60 ...J ~ Z 50 I.1J :¡¡; I.1J a: 0 40 ;; 30 20 10 0 .010-.100 .100-1.00 1.00-10.0 10.0-100 100-1000 PERMEABILlTY-Kai!' 1000-10000 10000-100000 100 - - - CUMULATIVE CAPACITY 90 80 70 * ...J 60 <I: I- Z I.1J 50 :¡¡; I.1J a: (.) 40 ~ 30 20 10 0 5-10 10-15 POROSITY HISTOGRAM 100 90 80 70 60 g ¡¡:: c: 50 !; - <: 40 m * 30 20 10 0 15-20 20-25 25-30 30-35 35·40 40-45 POROSITY Figure 13 100 90 80 70 60 g ¡¡:: c: 50 !; - <: 40 m :-11. o 30 20 10 o A Core Lab RESERVOIR OPTIMIZATION Appendix I (Core Inventory) for Kerr-McGee Oil & Gas Corporation Kigun 01 NWMilne Point North Slope, Alaska File No.: HOU-050228 Date: March 24, 2005 This report is based entirely upon core samples, soils, solids, liquids, or gases, together with related observational data,provided solely by the client. The conclusions, inferences, deductions and opinions rendered herein reflect the examina- tion, study and testing of these items, and represent the best judgement of Core Laboratories, LP. Any reliance on the information contained herein concerning the profitability or productivity on any well, sand, or drilling activity is at the sole risk of the client, and Core Laboratories, LP, neither extends nor makes any warranty or representation whatsoever with respect to same. This report has been prepared for the exclusive and confidential use of the client and no other party. Fax: 713-328-2567 Petroleum Services Division 6316 Windfern Houston, TX 77040 USA Tel: 713-328-2565 Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point North Slope. Alaska Core Tube Depth Interval No No (ft) 1 1 3766.00 3769.00 1 2 3769.00 3772.00 1 3 3772.00 3775.00 1 4 3775.00 3778.00 1 5 3778.00 3780.70 1 6 3780.70 3784.00 1 7 3784.00 3787.00 1 8 3787.00 3790.00 1 9 3790.00 3793.00 1 10 3793.00 3796.00 1 11 3796.00 3799.00 1 12 3799.00 3802.00 1 13 3802.00 3805.00 1 14 3805.00 3808.00 1 15 3808.00 3811.00 1 16 3811.00 3813.70 Page 1 ~ ptnnutlstlYlcrs Core Inventory Comments I c~~e I T~:e Core Inventory Depth Interval (ft) File No : HOU-050228 Date: March 24, 2005 Preserved Sections Appendix I · ÚJre Lab RESERVOIR OPTIMIZATION Appendix II (Sample Inventory) for Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: March 30, 2005 This report is based entirely upon core samples, soils, solids, liquids, or gases, together with related observational data, provided solely by the client. The conclusions, inferences, deductions and opinions rendered herein reflect the examination, study and testing of these items, and represent the best judgement of Core Laboratories, LP. Any reliance on the information contained herein concerning the profitability or productivity on any well, sand, or drilling activity is at the sole risk of the client, and Core Laboratories, LP, neither extends nor makes any warranty or representation whatsoever with respect to same. This report has been prepared for the exclusive and confidential use of the client and no other party. PETROLEUM SERVICES DIVISION 6316 WINDFERN HOUSTON, TEXAS 77040 (713) 328-2565 FAX (713) 328-2567 Kerr-McGee Oil & Gas Corporation Start Date: 03-30-05 Kigun 01 File No : HOU 050228 NW Milne Poin! Alaska Core Sample log (Updated 06-21-(5) Smpl Depth Srnpl Smpl End Routine Dean Thin No. (fi) Good Fair Poor Failed Vert Len Día Trims AnaJysis Star!< lPSA SCAl Section XRD SEM Remarks Location Date Sent Additional Comments 1G 3768.00 x 2.00 1.00 WA XRD only Geology 3/3012005 12CH 1.50 2 Frozen 41612005 14BV 3768.80 x x 3.00 1.50 2 CLB Storage 61912005 15CV 3768.80 x x 2.75 1.50 2 Frozen Storage 41612005 16CH 3770.85 x 2.75 1.50 2 Frozen Storage 416/2005 17AH 3770.95 x 2.75 1.50 2 ClB Storage 81912005 1aCH 3771.50 x 2.75 1.50 2 Froze 41612005 20BV 3771.80 x x 3.00 1.50 2 CLB Storage 61912005 21CV 3771.80 x x 3.00 1.50 2 Frozen Storage 41612005 22AH 3772.30 x 2.50 1.50 2 CLB Storage 61912005 23CH 3772.45 x 2.00 1.50 4 Frozen Storage 41612005 24AH 3773.50 x 2.75 1.50 2 CLB Storage 61912005 25CH 3773.60 x 2.50 1.50 2 Frozen Storage 416/2005 26CH 3774.50 x 1.50 2 Frozen 41612005 28BV 3774.80 x x 3.00 1.50 2 CLB Storage 61912005 29CV 3774.80 x 3.00 1.50 2 Frozen Storage 416!2005 30AH 3775.65 x 2.75 1.50 2 CLB Storage 61912005 31CH 3775.75 x 2.50 1.50 2 Frozen Storage 41612005 32AH 3776.50 x 2.25 1.50 2 CLB Storage 6/912005 33CH 3776.60 x 2.75 1.50 2 Frozen Storage 41612005 34CH 3777.60 x 2.75 1.50 2 Frozen Storage 41612005 35AH 3777.70 2.75 1.50 2 CLB Storage 61912005 36BV 3778.00 x x 1.00 1.50 2 short, frae ClB Storage 6/912005 37CV 3778.00 x x 1.25 1.50 3 short, frae Frozen Storage 41612005 2G x NfA 38AH 3778.40 x 1.50 1.50 2 x short CLB Storage 61912005 39CH 3778.50 x 2.50 1.50 2 416/2005 41CH 3779.60 x 3.00 1.50 2 Frozen 4f612005 MBV 3781.30 x x 1.50 1.50 2 short CLB Storage 61912005 45CV 3781.30 x x 1.50 1.50 2 short Frozen Storage 416!2005 46AH 3781.65 x 2.00 1.50 2 x frae CLB Storage 6/9f2005 Page 1 Kigun 01 Sample Inven!ory Appendix II Kerr-McGee Oil & Gas Corporation Start Date: 03-30-05 Kigun 01 File No : HOU 050228 NW Milne Point Alaska Core Sample Log (Updated 06-21-05) SEM Remarks Location Date Sent Additional Comments CLB Storage 6/9/2005 49CH 3782.50 x 1.50 2 Frozen Storage 4/612005 50CH 3783.50 x 1.75 1.50 2 frae Frozen Storage 4/5/2005 51AH 3783.70 2.00 1.50 2 CLB Storage 5/9/2005 528V 3783.80 x x 1.25 1.50 2 short CLB Storage 6/9/2005 53CV 3753.80 x x 1.50 1.50 2 short Frozen Storage 4/512005 54AH 3764.50 x 2.50 1.50 2 CLB Storage 6/912005 55CH 3764.60 x 2.50 1.50 2 Frozen Storage 4/612005 55AH 3785.50 x 2.50 1.50 2 CLB Storage 61912005 57CH 3785.70 x 2.50 1.50 2 Frozen Storage 4/512005 58CH 3786.50 x 2.75 1.50 2 Frozen Storage 4/512005 59AH 3785.70 x 2.50 1.50 2 CLB Storage 5/912005 60BV 3785.80 x x 3.00 1.50 2 CLB Storage 5/9/2005 61CV 3785.80 x x 2.75 1.50 2 4/612005 52AH 3787.50 x 2.50 1.50 2 chipped CLB Storage 6/912005 53CH 3787.60 2.50 1.50 2 Frozen 4/6/2005 64AH 3786.60 2.25 1.50 2 CLB Storage 619/2005 55CH 3786.70 x 2.50 1.50 2 chipped Frozen Storage 4/512005 55CH 3789.50 x 2.00 1.50 2 Frozen Storage 4/512005 57AH 3789.70 2.50 1.50 2 CLB Storage 61912005 86BV 3789.80 x x 1.50 1.50 2 CLB Storage 6/9/2005 69CV 3789.80 x 2.75 1.50 2 Frozen Storage 4/512005 70AH 3790.50 x 1.50 1.50 2 short 5/912005 x 73CH 3791.60 x 75AH 3792.25 x 1.50 1.50 2 x short CLB Storage 61912005 74CH 3792.50 x 1.25 1.50 2 ¡;hort, chipped Frozoo Storage 4/612005 76BV 3792.70 x x 1.50 1.50 2 chipped CLB Storage 6I912Ø05 77CV 3792.70 x x 2.50 1.50 2 FrozOO St:Qfag¡¡¡ 41612005 78AH 3793.50 x 2.25 1.50 2 x CLB StQrag¡¡¡ 61912005 79CH 3793.60 x 2.25 1.50 2 Frozoo St:Qfage 41612005 80Ati 3794.60 x 2.50 1.50 2 CLB Storage 6I912Ø05 81CH 3794.70 x 2.50 1.50 2 Frozen Storage 41612005 Page 2 Kigun 01 Sample Inventory Appendix II Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point Alaska Start Date: 03-30-05 File No . HOU 050228 Core Sample Log (Updated 06-21-05) Smpl Depth Smpl Smpl End Routine Dean Thin No. (ft) Good Fair Poor Failed Vert Len Dia Trims Analysis Stark LPSA SCAL Section XRD SEM Remarl<s 6G 3795.00 x 3.00 1.00 NlA )CRD only 82CH 3795.60 x 2.50 1.50 2 Location Date Sant Additional Comments Geology Frozen Storage 3/3012005 4/6/2005 4/6!2005 6/9/2005 107AH x 1.75 2 61912005 1086V x x 1.50 2 short 619/2005 x 2 112AH 3808.50 x 2.25 1.50 2 x CLB Storage 61912005 113CH 3S08.60 x 2.50 1.50 2 Frozen Storage 4/612005 114CH 3807.60 x 2.25 1.50 2 Frozen Storage 4/6!2005 115AH 3807.70 x 2.25 1.50 2 x CLB Storage 61912005 Page 3 Kigun 01 Sample Inventory Appendix II Kerr-McGee 011 & Gas Corporation Kigun 01 NW Milne Point Alaska Start Date: 03-30-05 File No : HOU 050228 Core Sample Log (Updated 06-21-05) Smpl Depth Smpl Smpl End Routine Dean Thin No. (It) Good Fair Poor Failed Vert Len Dia Trims Analysis Stark LPSA SCAL Section XRD SEM 116BV 3807.80 x x 2.00 1.50 2 117CV 3807.80 x 1.75 1.50 2 119CH 3808.30 1.75 1.50 2 Remarks Location CLB Storage Date Sent Additionai Comments 6/9/2005 4/612005 Frozen Storage 121CH x 2.25 1.50 2 Frozen Storage 41612005 122CH 3810.65 x 2.00 1.50 2 Frozen Storage 41612005 123AH 3810.70 x 1.75 1.50 2 CLB Storage 619/2005 124BV 3810.30 x x 1.75 1.50 2 chipped CLB Storage 6/912005 125CV 3810.80 x x 1.75 1.50 2 Frozen Storage 4/612005 11G 3811.25 x 3.00 1.00 NlA CMT Smpl Geology 313012005 126AH 3811.50 x 2.00 1.50 2 CLB 61912005 127CH 3811.95 2.00 1.50 2 Frozen Storage 4/612005 128AH 3812.30 x 2.25 1.50 2 x CLB Storage 61912005 129CH 3812.40 x 2.50 1.50 2 Frozen Storage 41612005 130CH 3813.10 1.50 2 Frozen 132BV 3813.30 x x 2.50 1.50 2 x CLB Storage 61912005 133CV 3813.30 x x 2.50 1.50 2 41612005 Page 4 Kigun 01 Sample inventory Appendix II · Core Lab JUSERVDIH OPTIMIZATION Appendix III (Statistical Averages) for Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 This report is based entirely upon core samples, soils. solids, liquids, or gases, together with related observational data,provided sole'Y by the client. The conclusions, Inferences, deductions and opinions rendered herein reflect the examina- tion, study and testing of these items, and represent the best judgement of Core Laboratories, LP. Any reliance on the information contained her~n concerning the profitahlity or productivity on any weH, sand, or drilling activity Is at the sole risk of the client, and Core Laboratori8S, Lp, neither extends nor makes any warranty or representation whatsoever with respect to same. This report has been prepared for the exclusive and confidential use of the client and no other party. Petroleum Services Division Fax: 713-328-2567 6316 Windfern Houston, TX 77040 USA Tel: 713-328-2565 Kerr McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska Core Interval for Statistical Averaaes Net Confining Stress Total Core Footage Footage Included in Statistics PERMEABILITY Arithmetic Mean Geometric Mean Harmonic Mean Flow Capacity POROSITY Arithmetic Mean Storage Capacity Grain Density Oil Saturation Water Saturation Page 44 ~ File No.: HOU-050228 Date: July 12, 2005 Analyst(s): RP, MM Cores: Conventional .nIlLt,"StlYlUS STATISTICAL AVERAGES 3766.00 - 3813.70 1100 NCS 47.70 Feet 47.70 Feet 280 mD 36 mD 3.07 mD 13,371 mD - feet 30.39 % 1,450 Por.-feet 2.724 glee 41.1 % 52.5 % Statistical Averages Appendix III .& [ore Lab RESERVOIR OPTIMIZATION Appendix IV (Viscosity & Gravity Data) for Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: April 21 2005 This report is based entirely upon core samples, soils, solids, liquids, or gases, together with related observational data, provided solely by the client. The conclusions, inferences, deductions and opinions rendered herein reflect the examination, study and testing of these items, and represent the best judgement of Core Laboratories, LP. Any reliance on the information contained herein concerning the profitability or productivity on any well, sand, or drilling activity is at the sole risk of the client, and Core Laboratories, LP, neither extends nor makes any warranty or representation whatsoever with respect to same. This report has been prepared for the exclusive and confidential use of the client and no other party. PETROLEUM SERVICES DIVISION 6316 WINDFERN HOUSTON, TEXAS 77040 (713) 328-2565 FAX (713) 328-2567 Kerr McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: April 21, 2005 Analysts: RP, MS Cores: Conventional SHEER STRESS VISCOSITY & GRA VITY MEASUREMENTS 3784.00 (Ultraviolet light Photograph) 3802.00 (Ultraviolet light Photograph) Protocol: 1 - 1.0" diameter samples were drilled using liquid nitrogen as bit lubricant. Sample locations are listed below: :3 - fluorescence - see 2 - Each sample was disaggregated and extracted using methylene chloride in order to remove all hydrocarbon material. 3 - This sample-sovent mixture was then filtered to separate all granular & liquid material 4 - The solvent was then allowed to evaporate from the hydrocarbon material until weight stabilization (+1- 0.001 g) was reached. 5 - The sheer stress viscosity & refractive index was measured on remaining hydrocarbon material @ 50° C. Data: Sample 1 3 Viscosity (cp) 97.9 100 o API Gravity 31 30 Depth 3784.00 3802.00 Page 1 Conclusion: There is very little difference between the two (2) sample measurements; therefore, the oil in the entire length of recovered core appears to have the same physical properties @ 50° C. Sheer Stress Viscosity Data Appendix IV Kerr McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska SMPL DEPTH NO (ft) R.L 1 3784.00 1.475 2 3793.00 1.479 3 3802.00 1.476 Footnotes: ~ I:Dre LaI:Í Irsurml IIPt1JIJ1AftOI File No.: HOU-050228 Date: March 25, 2005 Analyst(s): TW API by Refractive Index °API 31 29 30 . API by refractive index of retorted oil samples Page 2 API Gravity Measurements Appendix IV .. [ore LaI:Ï RESERVOIR OPTIKIZAnON Appendix V (Qualitative Spontaneous Imbibition Study) for Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 This report is based entirely upon core samples, soils, solids, liquids, or gases, together with related observationaJ data,provided solely by the client. The conclusions, inferences, deductions and opinions rendered herein reflect the examina- tion, study and testing of these items, and represent the best judgement of Core Laboratories, LP Arry reliance on the infonnation contained herein concerning the profitability or productivity on any well, sand, or drilling activity is at the sole risk of the client, and Core Laboratories, Lp, neither extends nor makes any warranty Q( representation whatsoever with respect to same. This report has been prepared for the exclusive arK.! confidential use of the client and no other party. Petroleum Services Division . 6316 Windfern . Houston, TX 77040 USA . Tel: 713-328-2565 . Fax: 713-328-2567 Kerr-McGee Oil & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska .Qualitative Spontaneous Imbibition Photoqraphv 3784.00 - 3784.25 o minutes 3784.00 - 3784.25 5 minutes Page 1 Qualitative Spontaneous Imbibition File No : HOU-050228 Date: April 1, 2005 Appendix V Kerr-McGee Oil & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska Qualitative Spontaneous Imbibition Phoìoqraphv 3784.00 - 3784.25 10 minutes 3784.00 - 3784.25 ,20 minutes Page 2 Qualitative Spontaneous Imbibition File No : HOU-050228 Date: April 1 , 2005 Appendix V Kerr-McGee Oil & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska Qualitative Spontaneous Imbibition Photoqraphv 3784.00 - 3784.25 30 minutes 3784.00 - 3784.25 60 minutes Page 3 Qualitative Spontaneous Imbibition File No : HOU-050228 Date: April 1 , 2005 Appendix V Kerr-McGee Oil & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska Qualitative Spontaneous Imbibition Photoqraphv 3793.00 - 3793.25 o minutes 3793.00 - 3793.25 5 minutes Page 4 Qualitative Spontaneous Imbibition File No : HOU-050228 Date: April 1 , 2005 Appendix V Kerr-McGee Oil & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska Qualitative Spontaneous Imbibition PhotoQraphv 3793.00 - 3793.25 10 minutes 3793.00 - 3793.25 20 minutes Page 5 Qualitative Spontaneous Imbibition File No : HOU-050228 Date: April 1 , 2005 Appendix V Kerr-McGee Oil & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska Qualitative Spontaneous Imbibition PhotoQraphy 3793.00 - 3793.25 30 minutes 3793.00 - 3793.25 60 minutes Page 6 Qualitative Spontaneous Imbibition File No : HOU-050228 Date: April 1 , 2005 Appendix V Kerr-McGee Oil & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska .Qualitative Spontaneous Imbibition Photography 3802.00 - 3802.25 o minutes 3802.00 - 3802.25 5 minutes Page 7 Qualitative Spontaneous Imbibition File No : HOU-050228 Date: April 1 , 2005 Appendix V Kerr-McGee Oil & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska Qualitative Spontaneous Imbibition PhotoQraphv 3802.00 - 3802.25 10 minutes 3802.00 - 3802.25 20 minutes Page 8 Qualitative Spontaneous Imbibition File No : HOU-050228 Date: April 1 , 2005 Appendix V Kerr-McGee Oil & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska Qualitative Spontaneous Imbibition Photoqraphv 3802.00 - 3802.25 30 minutes 3802.00 - 3802.25 60 minutes Page 9 Qualitative Spontaneous Imbibition File No : HOU-050228 Date: April 1 , 2005 Appendix V Kerr-McGee 011 & Gas Corp Kigun 01 Well NW Milne Point North Slope, Alaska File No : HOU-050228 Date: April 1, 2005 Qualitative Spontaneous Imbibition PhotoQraphv Analytical Protocol Three (3) sections of core (3784.00 - 3784.25, 3793.00 - 3793.25 & 3802.00 - 3802.25) were selected from sand intervals for qualitative spontaneous imbibition photography. Two (2) fluids were used for this test: a brine solution (35000 ppm) & high gravity mineral oil (420 API). The results of this photographic analysis can be found in this report. Table of Contents Depth Range (ft) 3784.00 - 3784.25 3784.00 - 3784.25 3784.00 - 3784.25 3784.00 - 3784.25 3784.00 - 3784.25 3784.00 - 3784.25 3793.00 - 3793.25 3793.00 - 3793.25 3793.00 - 3793.25 3793.00 - 3793.25 3793.00 - 3793.25 3793.00 - 3793.25 3802.00 - 3802.25 3802.00 - 3802.25 3802.00 - 3802.25 3802.00 - 3802.25 3802.00 - 3802.25 3802.00 - 3802.25 Time Interval (minutes) o 5 10 20 30 60 o 5 10 20 30 60 o 5 10 20 30 60 Page(s) 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 Qualitative Spontaneous Imibibition Appendix V .. [ore LaI:i RESERVOIR OPTIMIZAtiON Appendix VI (Preliminary Routine Core Analysis Instructions) for Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 This report is based entirely upon core samples, soils, solids, liquids, or gases, together with related observational data,provided solely by the client. The conclusions, inferences, deductions and opinions rendered herein reflect the examina- tion, study and testing of these items, and represent the best judgement of Core LabOfatories, LP. Any reliance on the information contained herein concerning the profitability or productivity on any wel!, sand, or drilling activity is at the sole risk of the client, and Core Laboratories, LP, neither extends nor makes any warranty or representation whatsoever with respect to same. This report has been prepared for the exclusive and confidential use of the client and no other party. Petroleum Services Division . 6316 Windfern . Houston, TX 77040 USA . Tel: 713-328-2565 . Fax: 713-328-2567 CONFIDENTIAL 2/18/05 From: Bob Skopec, Consultant to Kerr McGee (PAl, Inc.) To: Chris Camden, Russ Murphy, Rob Brown, Howard White, et al. Subject: Analytical Program-Kigun #1-Full-Diameter Core Analyses Suñace Core Gamma Ray (Done) All cores should be logged into a master spreadsheet upon their arrival at Core Lab, Houston. A multi-channel (spectral) core gamma ray scan should be performed as soon as the core arrives at Core Lab. The 2/3 slab should remain frozen to preserve in situ fluid saturations and prevent core deterioration during and after processing. Thin Section FabricationlSEMIXRD (per Howard White) Plug sample end trims to be designated by Howard White for XRD and SEM by Barry Wawak, Core Lab, Lafayette and thin section fabrication (only). Further petrographic evaluation will be determined by Dr. Howard White after his initial screening of the thin sections. Point counts (300 points minimum), modal analysis (grain size distribution), and diagenetic interpretation. Micro- paleontological objectives will be considered after thin section evaluation. Other techniques such as cathodoluminescence for source rock/provenance studies will be considered. Every attempt should be made to use a single end trim for all mineralogical and petrographic work. Staining will be determined after initial examination and integration of XRD data-carbonate and feldspar stains are likely. crr Scannina (Done) Axial slices must be taken three per tube section for core orientation and plugging. Each individual core tube image must be marked for tube number, X-ray slice location, and datum for tube orientation, Le., the uphole direction and a long axis reference point. Longitudinal images should be taken at two orientations. X-ray images are to be included in the final basic core analysis report. The core should be slabbed prior to sample plugging in a single cutting operation (1/3-2/3) using the crr data to maximize bed exposure-- the 1/3 (sedimentological slab) should be photographed. Selection of 2/3 Slab Core Sections for Rock Mechanics To be conducted after log integration and/or basic core analyses. Samplina and Sample Preparation Basic Core Analysis samples are to be 1.5" diameter cylinders with flat and parallel ends. Pilot Study Sample Group "PS" (a total of six samples to be distributed In sands only) XRD/SEMlEDX and Multiple Permeability Measurements on 1.5" Plugs (to be confirmed on Feb. 21) Single phase oil perm/miscible cleaning/multiple drying protocol (cool solvent/flow through cleaning with two single-phase liquid permeability measurements at net effective reservoir stress 1 if mineralogy suggests routine Dean Stark distillation will damage sands). Avoid high flow rates as migratable clays may be present in this reservoir rock. Standard porosity GV + PV and gas permeability at the estimated net effective reservoir stress of XXXX psig and XXXX psig). Sample Group "AH" (1.5" Inch Horizontal Plugs for Routine Core Analysis) Methods Subject to Pilot Study Results SW(totaI) Dean Stark Protocol (horizontal plug orientation)-one sample precisely every foot in the sands. Toluene should be used to maximize water distillation/extraction efficiency-the water distillation/extraction process will be considered complete when no additional water is collected in the Dean Stark trap for 24 hours. All samples are to be measured at XXXX psig and XXXX psig net effective reservoir stress. Every fifth sample should be measured at net confining stresses of XXXX, XXXX, XXXX, and XXXX psig. Follow Dean Stark distillation/extraction with a Soxhlet reflux/salt extraction using chloroform/methanol azeotrope, followed by methanol. Dry samples in a vacuum oven at 105°C to constant weight. Sample Group "BV" (One Inch Vertical Plugs Twinned to Horizontals for Routine Core Analysis) Methods Subject to Pilot Study Results SW(totaI) Dean Stark Protocol (vertical plug orientation)-QNE sample precisely every three feet directly adjacent to "AH" sample (ONLY IN RESERVOIR FACIES/SAMPLING DISCUSSIONS MAY BE REQUIRED) to be measured at XXXX psig and the net effective reservoir stress of XXXX psig (same protocol as in Sample Group "AH"). Sample Group "CH" 1.5" Diameter Twin Plug (Companion Sample to Group '! A") and Group "CV" (Vertical) for Special Core Analyses Fresh State horizontal samples to be processed the same as Group "AH", cataloged, preserved in sealed containers, and refrigerated for future special core analyses (cut immediately after slabbing). Overview of Basic Core Analvsls Protocol 1. Porosity and Grain Density~irect pore volume porosity (helium PV + GV approach) at net effective reservoir stress (to be calculated) and XXXX psig. 2. Permeability (Steady-state)-single-phase gas permeability at net effective reservoir stress (to be calculated) and XXXX psig. Samples with sufficient permeability will be considered for single-phase liquid permeability measurements. Selected gas permeabilities are to be Klinkenberg corrected at a minimum of three mean reciprocal pressures in addition to values derived from Klinkenberg's "b" factor. 3. Qualitative Spontaneous Imbibition Test-with time lapse photographs to be performed as soon as operationally feasible. Fresh Core surfaces (two in main sand) using individual "drops" of simulated formation brine and fresh reservoir crude oil or suitable lab oil. Digital photos of the imbibition process should be taken at zero as well as five, ten, twenty, thirty, and sixty-minute intervals after the liquid contacts the core. 7. Core Photography-(Done) general requirements provided by Howard White, minimal requirements call for a box and strip format. 2 8. Probe Permeametry- 10 shots per foot in the potentially productive lithologies immediately after the sedimentological slabs have dried to the point where multi-phase flow effects are minimized. Potential Special Core Analvses (Sand Intervals) Samples to be selected based on geological facies, hydraulics, and crr screening (three longitudinal scans (0, 45, and 90 degrees) and three axial scans with scan positions marked) from Group AH/CH samples. In the interest of time, the special core analysis program will be divided into two phases: Phase #1 Fast Track Program (four weeks or less-- after or concurrently with basic core analyses) 1. The lOPS" single phase liquid permeability and rock characterization study (listed under the basic core analysis program). 2. Formation Factors 3. 100% Sw NMR analyses (if applicable) 4. Mercury Porosimetry 5. Quick turnaround completion and fluid compatibility testing 6. Non-wettability restored Krw/Kro Phase #2 (eight to 16 weeks, possibly longer for porous plate capillary pressure de-saturation) All other analyses. Major Test Groups 1. Rock Mechanics (Core Lab or TerraTek)-- Uniaxial strain compressibility with concurrent permeability during drawdown (up to 10,000 psi drawdown from net effective reservoir stress* on horizontal sample) and determination of grain compressibility and Biot coefficient. Possible Unconfined Compressive Strength Triaxial Compressive Strength to define Mohr-Coulomb parameters as well as 2M Hz acoustics for determination of elastic moduli (if appropriate). Emphasis will be placed on tests suitable for assessing horizontal wellbores, sand control, and stability issues (if warranted). 2. Electrical properties (Core Lab)-routine Archie electrical properties of "a", 10m", and IOn" at 1 KHz and 20KHz at reservoir net effective stress* using two- and four-electrode methods and concurrent air-brine porous plate de-saturation for capillary pressure. Excess conductivity studies will be considered using the Co-Cw multi-salinity approach if warranted by mineralogy. Rw options to be evaluated. 3. Nuclear Magnetic Resonance (If Warranted-- Core Lab or PTS Labs)-2MHz T2 distributions at 100% Sw and Swir, multiple inter-echo spacings (0.32, 0.6, and 1.2 ms) and SIN of 200/1 and 8/1 at net effective reservoir stress*. Includes multiple permeability and porosity determinations with possible fresh state measurementslliquid re-saturation. 4. Wettabllity Measurements-- using the modified USBM method on wettability restored samples in combination with complete drainage and imbibition centrifuge capillary pressure determinations. 3 5. Relative Permeability (Core Lab)- Testing at reservoir net effective stress·-- the appropriateness of methods will be determined after routine analyses, e.g., steady state vs. unsteady state. Methodology, fluids, potential for trapped gas measurements, Interfacial Tension (1FT), and imbibition vs. drainage cycles to be determined. End point as well as measured 1FT data may also be of interest. Likely requirements will include KrwlKro (steady state) and KrglKro (unsteady state) on non-wettability restored and wettability restored samples. The same plugs will be used for all relative permeability tests regardless of preparation protocol. 6. Injection Well Studies and Produced Water Compatibility Analyses-To be considered/designed after evaluation of basic core analysis, Phase #1 special core analysis, and assessment of project economics. 7. Extended Range and/or at Stress Mercury Poroslmetry-for pore throat radii distribution air-mercury pressure (destructive testing) to quickly build a family of capillary pressure curves. 8. Completion Engineering, Drilling Fluid Evaluation, and Formation Damage Testing (Core LablStimLab or Completions Services Vendor)-to be determined. Will be conducted concurrently with other special core analyses. Destructive tests will be conducted on end trims. Possible Tests: a. Capillary Suction Testing (CST) b. Regained permeability to evaluate fluid performance c. Acid solubility/stimulation oriented testing d. Other flow through tests, e.g., evaluation of fines migration/critical velocity if warranted. 6. Other spacial core analyses as warranted after review of basic core analysis results, e.g. shale top, inter-bedded, and bottom seal analyses such as extended range mercury porosimetry, TOe, and whole rock geochemistry. Detailed procedures and recommendations for special core analysis will be provided after the basic core analysis results are evaluated. · A full tensor net effective stress calculation will be performed using the overburden gradient, frac gradient, an estimate of intermediate stress, and pore pressure. RAS, PAl, Inc. for Kerr McGee 4 .. Con! Lab RESERVOIR OPTIMIZATION Appendix VII (Final Report Distribution) for Kerr-McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska File No.: HOU-050228 Date: July 12, 2005 This reJXIrt is based entirely ufXJn core samples, soils, solids, liquids, or gases, together with related observational data,provided solely by the client. The conclusions, inferences, deductions and opinions rendered herein reflect the examina~ tion, study and testing of these items, and represent the best judgement of Core Laboratories, LP. Any reliance on the information contained herein concerning the profitability or productivity on any well, sand, or drilling activity is at the sole risk of the client, and Core Laboratories, LP, neither extends nor makes any warranty or representation whatsoever with respect to same. This report has been prepared for the exclusive and confidential use of the client and no other party. Petroleum Services Division Fax: 713-328-2567 6316 Windfern Houston, TX 77040 USA Tel: 713-328-2565 Kerr McGee Oil & Gas Corporation Kigun 01 NW Milne Point North Slope, Alaska & File No.: HOU-050228 Date: July 12,2005 Analyst(s): RP, MM Cores: Conventional P[TUUII"SU\,IC[S Distribution of Final Reports Kerr-McGee Oil & Gas 16666 Northchase Houston, TX 77060 Attn: Rebecca Isbell Petrophysical Applications Inti, Inc. PO Box 130304 The Woodlands, TX 77393-0304 Attn: Dr. Robert Skopec Armstrong Alaska, Inc. 700 17th Street, Suite 1400 Denver Colorado 80202 Attn: Jesse Sommer ConocoPhllllps Alaska, Inc. ATO 1470 PO Box 100360 Attn: Justine Boccanera Alaska 011 & Gas Conservative Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attn: Librarian Tim Ryherd, Geologist Dept. of Natural Resources - Division of Oil & Gas State of Alaska 550 W 7th Avenue, Suite 800 Anchorage, AK 99501-3510 Page 1 4 copies / 1 CD-ROM 1 copy / 1 CD-ROM 4 copies / 1 CD-ROM 1 copy / 1 CD-ROM 1 copy / 1 CD-ROM 1 copy / 1 CD-ROM Final Report Distribution Appendix VII I I 'I I I I I I I I I' I I I I I I I I ;).05 - 0;).5 sper'r'v-sun [J R I L..L.I N G 5 e R V I c: E 5 Kerr McGee Corporation END OF WELL REPORT Kigun # 1/BP01 I I I I T ABLE OF CONTENTS I I 1. General Information I 2. Daily Summary 3. Morning Reports I 4. Bit Record I 5. Mud Reports 6. Show Reports I 7. Survey Report I 8. Days vs Depth 9. Hydraulics Reports I 10. Formation Evaluation Logs I 11. Engineering Log I I I I I 5pe.....r'Y- sun I i:JRILLING seR\JIc:es I I I I I I I I I I I I I I I I I I I GENERAL WELL INFORMATION Company: Rig: Well: Field: Borough: State: Country: API Number: Sperry-Sun Job Number: Job Start Date: Job End Date (TD): North Reference: Declination: Dip Angle: Total Field Strength: Date Of Magnetic Data: Wellhead Coordinates N: Wellhead Coordinates W: SDL Engineers: Company Geologist: SSDS Unit Number: Kerr Mcgee Corporation Nabors N27E Kigun # 1/BP01 N. Milne pt. North Slope Alaska United States 50-629-23239-01 AK-AM-0003586950 8th March 2005 24 th March 2005 True 24.37 deg 80.873 deg 57588 NT January 28, 2005 North 70 deg 33 min 1.04 sec East 149 deg 56 min 23.62 sec Doug Wilson Ian Johnstone Ed Jones Mark Lindloff Jim Carroll C. Goddard / A. Reinhart 117 sperl-'y-sun !:JRI!...!...I"';¡¡; SeFHJICeS I I I I I I I I I I I I I I I I I I I Kigun # lIBPOl - Diary of Events 9th March 2005 RIH and pump cement plug. Displace hole to enviromul oil base mud. POR. Wait on weather. Continue POR. Finish well TS-l. Prepare to RIH with mill and cut window to begin well Kigun-1. 10th March 2005 Mill 13 3/8" casing window 1913' to 1939'. Drill formation to 1968' in 6.03 hours at 680gpm, average ROP of 9. 1 ftIhr. Lithology was 100% Claystone. POR. MIU 12 1/4" drilling assembly. RIR to 1839'. Wash down to 1968'.Short trip gas was 55units. 11th March 2005 Drill to 2794' with 80 RPM, 690gpm, 2100psi at an average 172ft1hr. Maximum gas was 1171units at 2166'. Formation at 2620' was 70% Sandstone, 30% Claystone. PIU + circulate on 1 pump. Pack off with rotation. Set back 1 stand + PIU 1 single. Work pipe and rotate to 2764'. Unable to circulate. 12th March 2005 MIU fishing BRA. Circ 2679' to 2734'.5' fill. Circulate BU. Trip gas was 386units. Work and catch fish. Jar 350k-no luck. RIU free point + sever pipe at 2720'. POR. 13th March 2005 Continue POR jarring assembly. PIU mule shoe and wash to top of fish at 2717'. Maximum gas was 208units from 2528'. CBU, pull to 2700', pump cement kick off plug. POR. Test BOPs. RIH to top cement 2433' and kick off Kigun#l BP01 sidetrack to 2442' . Average ROP was 91 ftIhr, with an average gas of 75units. Lithology was 90% Sand/Sandstone, 10% Claystone 14th March 2005 Time drill kick off 2442' to 2570'. Drill to 3760' (pump hi-vis at 3000') Circulate to check samples, then drill to coring point at 3766'. Wiper trip, circulate BU. Maximum gas was 1532units at 3633'. Drilling took 15.9 hours at an average ROP of 84ft1hr, with 769gpm and 2985psi pump pressure. Lithology was 90% Sand/Sandstone, 10% Claystone 15th March 2005 Continue circ BU, spot hi-vis + POR. RIH with 60' core barrel. Cut core 3766' to 3826' in 1.6 hours. Bottoms up not circulated-no gas or samples at surface. POR slowly to allow for gas expansion. 16th March 2005 Continue POR. LID core barrel. (75% recovery). RIH Bit 4rrl, ream trough cored section. Drill to casing point 4525' at 134ft1hr average ROP, with 771gpm and 305Opsi. Maximum gas was 1619units at 4271'. Lithology was 90% Claystone, 10% Sandstone. Circulate hole clean. I I I I I I I I I I I I I I I I I I I 17th March 2005 . paR to shoe. 60-70k o/pull at 3990'. 30k o/pull at 3490' ,3370', 3280'. paR to shoe. RIH. Ledge at 2705'-wash through (took 60-70k) RIH to 4463'. Wash to TD-no fill. Circulate clean-short trip gas= 183units. Ran carbide lag check-715 strokes late. paR. . RIH wireline tools. 18th March 2005 Continue running wireline tools. RIH with DP conveyed logs. 19th March 2005 Continue wireline logging on DP. paR to 2260'. Take DP samples. RIH to 3660+3807' -take DP samples. POR+ LID logging tools. RIH wiper trip to TD.Circ clean.(maximum gas 130units) 20th March 2005 paR. RIH 9 5/8" casing to 4505', circulate, (maximum gas 130units) pump cement. 21st March 2005 Test BOPs. M/U 8 W' BRA with new PDC bit #6. RIH to 4166'. Circ BU. Test casing to 250Opsi. Drill float, shoe, cement, + formation to 4545'. Perform FIT. Drill to 4565', circ BU, perform 2nd FIT to 21.Oppg EMW. Drill 8 W' hole at 128ft/hr, 150Strokes, 320Opsi. Lithology was 100% Claystone. Maximum gas was 213 units at 4613 ' . 220d March 2005 Drill 8 W' hole to 6690'. Pump sweeps at 5073', 5650', 6250', 6500'. Drill to 6690' at average 177ft/hr, 150strokes, 355Opsi. Circulate BU and do 4 stand wiper trip-slick. Lithology was 60% Clay/Claystone, 10% limestone, 10% Sandstone, 20% Siltstone. Maximum gas was 1580 units at 6839'. 23rd March 2005 Drill 8 W' hole to 7282' MD. Ruptured shock mud hose. Trip out of hole to 9 5/8" casing shoe at 4511' MD. Repair hose and bypass mudline to break circulation. Trip in hole to 7072' MD. Ream from 7072 to 7282' MD. Maximum short trip gas 416 units. Drill to 7831' MD. Washed out a-ring on standpipe. Pull out of hole 2 stands and repair. Circulate on injection pump while repairing standpipe. Maximum gas while drilling section 567 units at 7306' MD. Drilling parameters while drilling this section WOB 5-10 klbs, Standpipe 3575 psi, 636 gpm and 110-120 rpm. Lithology was 80% claystone and 20% siltstone. 24th March 2005 Finish repairing standpipe. RIR 2 stands, wash 7827' to 7837'. Drill ahead to 9098'MD, 9000.69'TVD - Well TD. Circulate BU. Pump slug, paR. . Drilling parameters while drilling this section WOB 5-20 klbs, Standpipe 3500 psi, 625 gpm and 100-120 rpm. Lithology was 80% Sandstone, 20% Tuff, and 10% Shale I I GEOLOGIST FORMATION TOPS I MD TVD TVD SS I UGNU 2929 2832 2794 SCHRADER BLUFF 3491 3394 3355 I SCHRADER OA 3777 3680 3641 I COLVILLE 3824 3727 3688 HRZ 6508 6411 6373 I KUPARUK 6782 6685 6647 I LCU 6815 6718 6680 NUIQSUT 6878 6781 6743 I KINGAK 6949 6852 6814 I SAG RIVER 8360 8263 8225 SHUBLIK 8477 8380 8342 I EILEEN 8715 8618 8580 I IVISHAK 8788 8691 8653 I I I I I I I I I I I I I I I I I I I I I I I I I 1- Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3513277 spe....,....,v-sun D A I LL. I N G seA v I c:: e s Mudlogger's Morning Report Current o o 24 hr Avg o ftIhr ( o unit! ( ( 24 hr Max ftIhr @ units @ deg F @ ftIhr units Deg F o o o o Mud Wt In Mud Wt Out 9.60 ppg 9.60 ppg Visc 60 sees PV 21 cP API filt YP 11 Ibs/100ft2 ml HTHP 5.6 m Mud Wt at Max Gas Gels 6 \ 8 \ 10 ES 671.0 Sd Type: o RPM: o Bit Size: Hrs. On Bit: Jets: x -- Total Revs on Bit: x x TFA: -- Footage for Bit Run Trip Depth: Short Trip Depth Tight Spots: ft Trip Gas: ft Short Trip Gas: 1 I 1 o % % Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 1 3/10/2005 1948 o RIH Goerlich/Ross Pump and Flow Data Pump 1 0 spm Flow rate Pump 2 0 Pump Liner 6" x SPP 0 -- Mud Cut: Mud Cut: ppg Trip CI: ppg Short Trip CI: Feet of Fill on Bottom: sst o % clyst % t Lithology: Sltst ft ft ft ppg ppg ppg Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft ft ft units units units Drilling Breaks Depth Drill Rate during before before after to to to to 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: very fine filings Gas during units units units o o 12 gpm gps in. ppg o % ppm ppm o ft % sh ppg ppg ppg after % Lithology Sltst Sst Ls Cly * 10000 24 hr Recap: Pumped cement, Displaced waterbase mud with mineral based mud. Start POOH. Got within 3 stands Weather got bad, Waited on weather. Finsh POOH. P/U Whipstock and Currently RIH with Milltooth Bit to mill out window. Will be starting Kigun #1 today. * 3 Sample catchers on Location: B. Corder, D.Beard, Kenyon Ahern Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00 / man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone / Mark Lindloff / Ed Jones I I I I I I I I I I I I I I I I I I I Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: sperry-sun [J A I L...L..I N G 5 E A V I c: E 5 Mudlogger's Morning Report 2 3/11/2005 2072 159 drilling Goerlich/Ross Current 24 hr Avg 24 hr Max Pump and Flow Data 210 fUhr 196 fUhr ( 483 fUhr @ 2047 Pump 1 77 spm Flow rate 644 gpm 300 units 286 unib( 428 units @ 2043 Pump 2 72 10.73 gps Deg F ( deg F @ Pump Liner 6" x 12 in. SPP 2100 Mud Wt In Mud Wt Out 9.70 ppg 9.70 ppg -- ml HTHP 5.4 m Mud Wt at Max Gas Gels 10 \ 20 \ 21 ES 777.0 Sd % Vise 60 sees PV 19 eP AP I filt YP 12 Ibs/100ft2 ppg o 2 Jets: 12 x 16 -- Total Revs on Bit: 16 x 16 3 16 x TFA: 0.6990 -- Footage for Bit Run 104 Type: RPM: GT-CM1 80 Bit Size: 12 1/4 Hrs. On Bit: 0.5 10 1968 ft Trip Gas: ft Short Trip Gas: 1 I 1 Mud Cut: 9.6 ppg Trip CI: 1691 Mud Cut: ppg Short Trip CI: Feet of Fill on Bottom: ppm ppm ft Trip Depth: Short Trip Depth Tight Spots: 55 100 % Clyst o % % % nt Lithology: Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft ft ft ft ft ft units units units ppg ppg ppg Drilling Breaks Gas during Depth Drill Rate during before before after after to to to to % units units units ppg ppg ppg % Lithology Sltst Sst Ls Cly I I I I I I I I I I I I I I I I I I I Mudlogger's Morning Report Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 3 3/12/2005 2794 722 RIH Goerlich/Ross sper"r"v-sun [J A I LL IN G 5 e A v I c: e 5 Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 Whr 172 Whr ( 797 Whr @ 2634 Pump 1 76 spm Flow rate 690 Gas* 0 units 334 unitf ( 1171 units @ 2166 Pump 2 75 11.5 - Temp Out Deg F ( degF@ Pump Liner 6" x 12 SPP 2100 Mud Wt In Mud Wt Out 9.60 ppg 9.60 ppg Visc 60 secs PV 21 cp API filt YP 11 Ibs/100ft2 ml HTHP 5.6 m Mud Wt at Max Gas - - Gels 6 \ 8 \ 10 ES 671.0 Sd ppg o % -- 15 Type: RPM: GT-CM1 80 Bit Size: 121/4 Hrs. On Bit: 4.7 Jets: 12 x 16 -- Total Revs on Bit: 16 x 16 29 16 x TFA: 0.6990 -- Footage for Bit Run 826 2 Trip Depth: 2794 ft Trip Gas: 96 Mud Cut: 9.6 ppg Trip CI: 2493 ppm Short Trip Depth ft Short Trip Gas: Mud Cut: ppg Short Trip CI: ppm Tight Spots: 1 / 1 Feet of Fill on Bottom: 0 ft -i Current Lithology: 0 % Sltst 30 % sst 20 % Clyst 50 % Sd % sh Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg - f~---- Drilling Breaks Depth Drill Rate Gas % Lithology before during after before during after Sltst Sst Ls 2500 to 2520 150 500 230 100 100 160 10 2620 to 2640 250 750 300 80 80 80 70 to to 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine, long, thin, skinny slivers oz. 24 hr Recap: Drill to 2794'. P/U and circ on 1 pump. Pack off with rotation, Set back stand + P/U single. Work pipe + rotate to 2764'-unable to circ. Free at 2722'. 1000psi press loss. Circ + POH. Stab + motor in hole. RIH to fish. Tag fish at 2734'. Try to screw in. POH. No Fish. * 3 Sample catchers on Location: B. Corder, D.Beard, Kenyon Ahern Daily cost: Full Mudlogging + 3 Sample Catchel"s ($275.00/ man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.0C Logging Engineer: Ian Johnstone / Jim Carroll/ Ed Jones * 10000 I I I I I I I I I I I I I I I I I I I Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: spe....,....,~-sun C A I L..L..I N G 5 e A v I c: e 5 Mudlogger's Morning Report 4 3/13/2005 2794 o TIH to CMT Goerlich/Mosely Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 fVhr fVhr ( fVhr @ Pump 1 87 spm Flow rate 730 gpm Gas* 0 units 7 unit! ( 386 units @ 2720' Pump 2 84 12.17 gps - Temp Out Deg F ( deg F @ Pump Liner 6" x 12 in. SPP 1170 Mud Wt In Mud Wt Out 9.60 ppg 9.60 ppg -- ml HTHP 5.6 m Mud Wt at Max Gas Gels 6 \ 8 \ 10 ES 671.0 Sd % Visc 60 secs PV 21 cp API filt YP 11 Ibs/100ft2 ppg o Type: RPM: 16 x 16 29 16 x TFA: 0.6990 -- Footage for Bit Run 826 GT-CM1 80 Bit Size: 12 1/4 Hrs. On Bit: 4.7 Jets: 12 x 16 -- Total Revs on Bit: 15 Trip Depth: 2794 ft Trip Gas: 386 Mud Cut: Na ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: ppg Short Trip CI: ppm Tight Spots: 1 1 1 Feet of Fill on Bottom: 0 ft Current Lithology: 0 % Sltst 30 % sst 20 % Clyst 50 % Sd % sh 24 hr Recap: P/U M/U Fishing BHA. TIH on D.P. Break Circ @ 2679'-2734'.5' Fill. CBU. Work & Catch Fish, Jar same @ 350K. Attempt to work free. Unable to. Cont to Jar. R/U to Free Point, Severe & back off @ +1- 2720'. CBU, Pump Slug POOH. * 3 Sample catchers on Location: B. Corder, D.Beard, Kenyon Ahern Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00/ man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone / Jim Carroll 1 Ed Jones ft ft ft ppg ppg ppg Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg units units units Drilling Breaks Gas during Depth Drill Rate during before before after after to to to to 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine * 10000 ft ft ft units units units ppg ppg ppg % Lithology Sltst Sst Ls Cly I I I I I I I I I I I I I I I I I I I Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: sper"r"v-sun [J A I ~~ I N c¡¡ 5 E A V I c: E 5 Mudlogger's Morning Report 5 3/14/2005 2571' 131' Drilling Ahead Goerlich/Mosely Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 91 ftIhr 132 ftIh r ( 616 ftIhr @ 2519 Pump 1 84 spm Flow rate 681 gpm Gas* 65 units 75 unit~ ( 288 units @ 2566' Pump 2 76 11.35 gps - Temp Out Deg F ( deg F @ Pump Liner 6" x 12 in. SPP 2280 Mud Wt In Mud Wt Out 9.80 ppg 9.80 ppg Visc 58 secs PV 20 cp API filt YP 11 Ibs/100ft2 ml HTHP 4.4 m Mud Wt at Max Gas Gels 7 \ 15 \ 15 ES -- 9.80 ppg Sd 0 % 3 Jets: 12 x 16 16 x 16 ---- Total Revs on Bit: 35.3K 16 x TFA: 0.6990 -- Footage for Bit Run 131' 24 hr Recap: Cant to POOH UD Jarring Assy. P/U,M/U Mule show TIH to 2700'. Wash to T.O.Fish, 2717, CBU. Pull to 2700' Set CMT KO plug. POOH 10 Stnds. Pump wiper ball, CBU. Slip/Cut Drill Line. POOH. P/U Test plug test BOP·s. P/U,M/U BHA TIH to TOC 2433' Begin S.T. DrilllSlide as per Directional Prog. * 3 Sample catchers on Location: B. Corder, D.Beard, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00/ man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone 1 Jim Carroll 1 Ed Jones Type: RPM: GT-CM1 59 Bit Size: 12 1/4 Hrs. On Bit: 3.6 1-5 Trip Depth: Short Trip Depth Tight Spots: ft Trip Gas: ft Short Trip Gas: 1 I 1 Mud Cut: Mud Cut: ppg Trip CI: ppg Short Trip CI: Feet of Fill on Bottom: 50 % Sh % Current Lithology: 40 % SST 10 % Sd 2497 ft 88 units ~ ppg 2528* ft 208 units ~ ppg ft units ppg Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg Drilling Breaks Drill Rate during Depth Gas during after before after before to to to to 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine * 10000 ppm ppm o ft % ft ft ft units units units ppg ppg ppg % Lithology Sltst Sst Ls Cly I I I I I I I I I I 'I I I I I I I I I sper'r'v-sun I:J A I LL IN G 5 EE A V I c: EE 5 Mud Wt In Mud Wt Out 9.90 ppg 9.90 ppg Visc 48 secs PV 15 cp YP API filt 8 Ibs/100ft2 ml HTHP ~ m Mud Wt at Max Gas 9.80 ppg Gels 7 \ 14 \ 15 ES 601.0 Sd 0.8 % Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 6 3/15/2005 3766'm 1 3669't 1195' Circ hole clean Goerlich/Mosely Mudlogger's Morning Report Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Current 24 hr Avg 24 hr Max Pump and Flow Data . 0 fUhr 145 fUhr ( 515 fUhr @ 2617 Pump 1 90 spm Flow rate 769 18 units 142 unit~ ( 1532 units @ 3633 Pump 2 90 12.82 Deg F ( degF@ Pump Liner 6" x 12 SPP 2985 -- 3 Type: 10-20 RPM: GT-CM1 Bit Size: 12 1/4 65-115 Hrs. On Bit: 15.9 Jets: 12 x 16 -- Total Revs on Bit: 16 x 16 214k 16 x TFA: 0.6990 -- Footage for Bit Run 1333' Trip Depth: Short Trip Depth Tight Spots: 3766' 1 ft Trip Gas: ft Short Trip Gas: 1 51 Mud Cut: Mud Cut: ppg Trip CI: ppg Short Trip CI: Feet of Fill on Bottom: Na ppm ppm ft 1 Current Lithology: 20 % Sd 30 % SST 50 % Clyst % % Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg Drilling Breaks Depth Drill Rate Gas % Lithology before during after before during after Sltst SSt Sd Clysl 3625 to 3670 124 88 68 211 955 264 10 80 10 to to to 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine 24 hr Recap: Cont to Time Drill K.O. 2442'-2570'. Pump Hi-Vis Sweep @ 3000'. Drill to 3760' Circ to check samples. Cont to Drill to 3766' (Core Point). S.T. to shoe, 1939'. Monitor well on Trip Tank. TIH to 3716', encountered bridge. Wash from 3710'-3766', no fill. Pump Hi-Vis Sweep CBU 2X till hole clean. * 3 Sample catchers on Location: B. Corder, D.Beard, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00/ man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone 1 Jim Carroll 1 Ed Jones * 10000 I I I I I I I I I I I I I I I I I I I Customer: Well: Area: Lease: Rig: Job No.: spel"""....,v-sun C A I L..L..I N G 5 e A v I c: e 5 Mudlogger's Morning Report Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 7 3/16/2005 3826'm 1 3729't 60 POOH Goerlich/Mosely Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. fUhr 32.8 fUhr ( 137 fUhr @ 3792' Pump 1 spm Flow rate 186 Gas* units 35 unib( 67 units @ 3766 Pump 2 44 3.1 Temp Out Deg F ( deg F @ Pump Liner 6" x 12 SPP 0 Mud Wt In Mud Wt Out 9.90 ppg 9.90 ppg 4 Type: 10-15 RPM: Trip Depth: 3766 Short Trip Depth Tight Spots: 2705 1 Current Lithology: ft ft ft units units units Depth to to to to Visc 59 secs PV 21 cp API filt YP 11 Ibs/100ft2 -- ml HTHP ~ m Mud Wt at Max Gas 9.80 ppg Gels 7 \ 14 \ 15 ES 650 Sd 0.2 % core bbl 90-105 Bit Size: Hrs. On Bit: 1.8 Jets: 12 x 16 -- Total Revs on Bit: 16 x 16 10.5k 16 x TFA: 0.6990 -- Footage for Bit Run 60' 67 Mud Cut: Na ppg Trip CI: Mud Cut: ppg Short Trip CI: Feet of Fill on Bottom: ft Trip Gas: ft Short Trip Gas: I 1 20 % Sd 30 % SST 50 % Clyst % ppg ppg ppg before Drill Rate during Connection Gas and Mud Cut ft units _ ppg ft units ppg ft units ppg Drilling Breaks after Gas during after before 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine to curly slivers Na ppm ppm ft % ft ft ft units units units ppg ppg ppg % Lithology Sltst SSt Sd 24 hr Recap: Cont to CBU Pump 270 bbl Hi-Vis Spot w/Slug. POOH UD Mud Motor,MWD & Bit. P/U,M/U Core Barrels & Bit. TIH to 2705' Md. Wash through bridge, cont to RIH to 3766'. Core from 3766'-3826'MD. Drop closing ball. POOH @ 4min/stnd to 2480'. Then 6 min/stnd to 1825' Wait 1 hr f/gas expo POOH @ 10 m/s to 500' wait 1hr. * 3 Sample catchers on Location: L..Moberg, D.Beard, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00 / man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone I Jim Carroll I Ed Jones * 10000 I I I I I I I I I I I I I I I I I I I Mud Wt In Mud Wt Out 9.90 ppg 9.90 ppg Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 8 3/17/2005 4525'm 1 4428't 699' ST to Shoe Goerlich/Mosely 5pef"""~V-5Un CAI L...L...I N G seAVI c:es Mudlogger's Morning Report Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 fUhr 154 fUhr ( 358 fUhr @ 4253' Pump 1 90 spm Flow rate 771 Gas* 0 units 256 unit! ( 1619 units @ 4271' Pump 2 90 12.85 Temp Out Deg F ( degF@ Pump Liner 6" x 12 SPP 3050 Visc 54 secs PV 17 cP YP API filt 9 Ibs/100ft2 ml HTHP 4.3 m Mud Wt at Max Gas 9.90 ppg Gels 6 \ 14 \ 16 ES 665 Sd 1.5 % -- Bit No.: Wt On Bit: 2 Type: HTC GT-CM1 Bit Size: 121/4 15-25 RPM: 100-120 Hrs. On Bit: 5.2 Jets: 1 x 14 3 x 20 ---- Total Revs on Bit: 101.3 K x TFA: 1.0700 -- Footage for Bit Run 669' Trip Depth: 3766 ft Trip Gas: 1018 Mud Cut: Na ppg TripCI: Na ppm Short Trip Depth ft Short Trip Gas: Mud Cut: ppg Short Trip CI: ppm Tight Spots: 2705 1 3438 / 1 Feet of Fill on Bottom: 0 ft Current Lithology: 90 % Clyst 10 % SST % % % Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg Drilling Breaks Depth Drill Rate Gas % Lithology before during after before during after Sltst SSt Sd Clysl 3766' to 3815 132 104 134 263 395 195 50 20 30 to to to 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine, long curly 24 hr Recap: Cont to POOH. UD Core Barrel. P/U M/U BHA TIH. Bridge at 2705' & 3438'. Wash 1 Wipe through core section, 3766'-3826'. Cont to Drill ahead to CSG Pnt, 4525' CBU, Drop carbide lag check. Circ hole clean. No increase in gas for lag check, POOH S.T. to shoe. * 3 Sample catchers on Location: L..Moberg, J.McNaught, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00 / man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone / Jim Carroll/ Ed Jones * 10000 I I I I I I I I I I I I I I I I I I I Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: spef"""f"""y-sun [J AI L-L-I N G 5 E A V I c: E 5 Mudlogger's Morning Report 9 3/19/2005 4525'm 1 4428't o E-Logging Goerlich/Mosely Current 24 hr Avg 24 hr Max Pump and Flow Data 0 ftIhr ftIhr ( ftIhr @ Pump 1 spm Flow rate 0 units unit~ ( units @ Pump 2 0 - Deg F ( deg F @ Pump Liner 6" x 12 SPP Mud Wt In Mud Wt Out 10.20 ppg 10.20 ppg -- ml HTHP 3.8 m Mud Wt at Max Gas 10.20 ppg Gels 7 \ 17 \ 20 ES 613 Sd 0.5 % Vise 68 sees PV 23 eP YP API filt 9 Ibs/100ft2 Jets: x -- Total Revs on Bit: x x TFA: -- Footage for Bit Run Type: Bit Size: RPM: Hrs. On Bit: Trip Depth: ft Trip Gas: Short Trip Depth ft Short Trip Gas: Tight Spots: Current Lithology: 90 % Clyst 10 % SST Mud Cut: Mud Cut: ppg Trip CI: ppg Short Trip CI: Feet of Fill on Bottom: % % ft ft ft ppg ppg ppg Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg units units units Drilling Breaks Gas during Depth Drill Rate during before ft ft ft units units units ppm ppm o ft % ppg ppg ppg after % Lithology Sltst SSt Sd Clysl before after to to to to Current 24 hr Avg 24 hr Max Pump and Flow Data 0 fUhr fUhr ( fUhr @ Pump 1 85 spm Flow rate 734 20 units 35 unit~ ( 302 units @ 4525 Pump 2 86 12.23 Deg F ( deg F @ Pump Liner 6" x 12 SPP 2900 Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: sper'....,v-sun CAI L...L...I N c¡¡¡ SEAVI c: ES Mudlogger's Morning Report ft ft ft 10 3/20/2005 4525'm 1 4428't o POOH Goerlich/Mosely 10.20 ppg 10.20 ppg -- ml HTHP ~ m Mud Wt at Max Gas 10.20 ppg Gels 8 \ 17 \ 21 ES 590 Sd 0.5 % Mud Wt In Mud Wt Out Visc 68 secs PV 21 cp YP API filt 9 Ibs/100ft2 Type: RPM: x x TFA: -- Footage for Bit Run Bit Size: Hrs. On Bit: Jets: x -- Total Revs on Bit: Trip Depth: Short Trip Depth Tight Spots: 4525 ft Trip Gas: ft Short Trip Gas: 302 Mud Cut: Na ppg Trip CI: Mud Cut: ppg Short Trip CI: Feet of Fill on Bottom: 10 % SST % % Current Lithology: 90 (Yo Clyst ft ft ft Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg units units units ppg ppg ppg Drilling Breaks Depth Drill Rate during Gas during after after before before to to to to 24 hour accumulation of SteE~1 Filings from Possum Belly Magnets: Description of filings: Fine Na ppm ppm o ft % units units units ppg ppg ppg % Lithology Sltst SSt Sd Clysl 24 hr Recap: Cant to Log on D.P. POOH to 2260', Take D.P. Samples. RIH to 3660' & 3807' Take D.P. Samples. POOH to Side Entry Sub, Retrieve Wireline, POOH UD Logging Tools. P/U, M/U Bit & BHA< TIH to Shoe. Break Circ, TIH to BTM. CBU, Circ Clean, Pump Slug POOH. * 3 Sample catchers on Localtion: L..Moberg, J.McNaught, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00/ man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone I Jim Carroll I Ed Jones * 10000 Current 24 hr Avg 24 hr Max Pump and Flow Data Whr Whr ( Whr @ Pump 1 spm Flow rate 0 units 35 unit! ( 130 units @ 4525 Pump 2 0 - Deg F ( deg F @ Pump I Liner 6" x 12 SPP Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: spe""'f"""y-sun DAIL..L..ING seAVIc:::es Mudlogger's Morning Report % 11 3/21/2005 4525'm I 4428't o Work on Rig Goerlich/Ross 10.20 ppg 10.20 ppg -- ml HTHP ~ m Mud Wt at Max Gas 10.20 ppg Gels 7 \ 17 \ 18 ES 550 Sd 0.1 % MudWt In Mud Wt Out Visc 73 secs PV 23 cp API tilt YP 10 Ibs/100ft2 Type: RPM: x x TFA: -- Footage for Bit Run Bit Size: Hrs. On Bit: Jets: x -- Total Revs on Bit: Trip Depth: Short Trip Depth Tight Spots: 4525 ft Trip Gas: ft Short Trip Gas: 130 Mud Cut: Na ppg Trip CI: Mud Cut: ppg Short Trip CI: Feet of Fill on Bottom: 10 % SST % % 90 % Clyst Current Lithology: ft ft ft Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg units units units ppg ppg ppg Drilling Breaks Depth Drill Rate during Gas during after after before before to to to to 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: Fine Na ppm ppm o ft ft ft ft units units units ppg ppg ppg % Lithology Sltst SSt Sd Clysl 24 hr Recap: Cont to POOH, LID Bit & BHA, CIO rams on stack to 9 5/8", RlU Run 9 5/8" CSG, TIH w/same. TIH to window, break Circ. Cont to TIH to +1- 4500'. CBU, Pump CMT as per Well Program, RID CMT Head and running tool. Prepare to test BOP's * 3 Sample catchers on Location: L..Moberg, J.McNaught, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00/ man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone / Jim Carroll/ Ed Jones * 10000 I I I I I I I I I I I I I I I I I I I spe....,....,v-sun [J A I L..L..I N G 5 e A V I c= e 5 Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 12 3/22/2005 4730MD/4633TV 205 Drill 8.5" Goerlich/Ross Current 24 hr Avg 24 hr Max Pump and Flow Data 155 ftIhr 128 ftIhr ( 373 ftIhr @ 4698 Pump 1 75 spm Flow rate 641 252 units 168 unit! ( 283 units @ 4613 Pump 2 75 10.68 Deg F ( deg F @ Pump Liner 6" x 12 SPP 3220 Mud Wt In Mud Wt Out 10.20 ppg 10.20 ppg Visc 73 sees PV 26 cp API filt YP 11 Ibs/100ft2 -- ml HTHP 3.6 m Mud Wt at Max Gas 10.20 ppg Gels 7 \ 17 \ 20 ES 544 Sd 0.7 % 6 Type: RPM: HCM605Z Bit Size: 90 Hrs. On Bit: 10 x x TFA: 0.7520 -- Footage for Bit Run 205 81/2 1.3 Jets: 5 x 14 -- Total Revs on Bit: 24 Trip Depth: 4525 ft Trip Gas: N/A Mud Cut: Na ppg TripCI: Na ppm Short Trip Depth ft Short Trip Gas: Mud Cut: ppg Short Trip CI: ppm Tight Spots: Feet of Filion Bottom: 0 ft Current Lithology: 90 % CLYST 10 % SST % % % ft ft ft units units units ppg ppg ppg Depth Drill Rate during before to to to to Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg Drilling Breaks after Gas during after before 24 hour accumulation of SteHI Filings from Possum Belly Magnets: Description of filings: fine filings ft ft ft units units units ppg ppg ppg % Lithology Sltst SSt Sd Clysl 24 hr Recap: Test BOPs. M/U 8.5"BHA. RIH to 4416'. Circ BU. Test Csg to 2500psi. Drill float, cement, + 20ft formation to 4545'. CBU. Perform FIT. Drill to 4565'. CBU. Perform FIT (TVD 4414') to 21.0ppg EMW Drill ahead * 3 Sample catchers on Location: L..Moberg, J.McNaught, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00/ man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $8:~5.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone 1 Jim Carroll 1 Ed Jones * 10000 I I I I I I I I I I I I I I I I I I I sper-r-y-sun I:J R I L..L.. I N c¡¡ 5 e R V I c::: e 5 Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 13 3/23/2005 7168'm 17071't 2438' Drill Ahead Goerlich/Ross Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 170 ft/h r 177 ft/hr ( 338 ft/hr @ 5722 Pump 1 75 spm Flow rate 636 gpm Gas· 215 units 283 unit! ( 1580 units @ 6839 Pump 2 74 10.6 gps - Temp Out Deg F ( deg F @ Pump Liner 6" x 12 in. SPP 3550 Mud Wt In Mud Wt Out 10.60 ppg 10.60 ppg Visc 64 secs PV 22 cp API filt YP 13 Ibs/100ft2 -- Trip Depth: ft Trip Gas: Mud Cut: ppg TripCI: ppm Short Trip Depth 6690' ft Short Trip Gas: 915 Mud Cut: Na ppg Short Trip CI: Na ppm Tight Spots: Feet of Fill on Bottom: 0 ft Current Lithology: 70 % CLYST 30 % Cly % % % Bit No.: Wt On Bit: 6 Type: RPM: HCM605Z Bit Size: 108 Hrs. On Bit: 15 4697 ft 420 units ~ ppg 4791 ft 362 units ~ppg 5168 ft 283 units ~ppg Depth Drill Rate during before to to to to ml HTHP ~ m Mud Wt at Max Gas 10.50 ppg Gels 8 \ 17 \ 17 ES 550 Sd 0.8 % 81/2 18.0 x TFA: 0.7520 -- Footage for Bit Run 2643 Jets: 5 x 14 x -- Total Revs on Bit: 336 k Connection Gas and Mud Cut 5359 ft 420 units ~ ppg 6214 ft 341 units ~ppg 6406 ft 229 units ~ ppg 6596 6882 7072 ft 1052 units ~ ppg ft 669 units ~ ppg ft 656 units ~ ppg Drilling Breaks after Gas during after % Lithology Sltst SSt Sd Clysl before 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine filings 24 hr Recap: Drill Ahead as per Program, pump sweeps (Hi Vis or Weighted) @ 5073', 5650', 6250', & 6500. Drill to 6690' CBU S.T 4 Stnds.(Slick). Break Cire, Cont to drill and pump sweeps as needed. Pumped sweep @ 6900'. · 3 Sample catchers on Location: L..Moberg, J.McNaught, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00 / man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone 1 Jim Carroll 1 Ed Jones . 10000 I I I I I I I I I I I I I I I I I I I spel"""l"""v-sun D A I I-L.. I N G 5 e A V I c: e 5 Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 14 3/24/2005 7838'm 1 7741 't 670' Reapir SPP Goerlieh/Ross Current 24 hr Avg 24 hr Max Pump and Flow Data 0 fUhr 151 fUhr ( 280 fUhr @ 7358 Pump 1 75 spm Flow rate 636 gpm 0 units 64 unit! ( 567 units @ 7306 Pump 2 74 10.6 gps - Deg F ( deg F @ Pump Liner 6" x 12 in. SPP 3575 Mud Wt In Mud Wt Out 10.65 ppg 10.65 ppg Visc 61 secs PV 27 cp API filt YP 12 Ibs/100ft2 -- ml HTHP ~ m Mud Wt at Max Gas 10.50 ppg Gels 8 \ 18 \ 19 ES 603 Sd 0.3 % 6 Type: RPM: HCM605Z Bit Size: 110 Hrs. On Bit: 13 81/2 23.0 Jets: 5 x 14 x -- Total Revs on Bit: 426 k x TFA: 0.7520 -- Footage for Bit Run 3312 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth 7282' ft Short Trip Gas: 416 Mud Cut: Na ppg Short Trip CI: Na ppm Tight Spots: Feet of Fill on Bottom: 0 ft Current Lithology: 80 % CLYST 20 % Sltst % % % ft ft ft units units units ppg ppg ppg Depth Drill Rate during before to to to to Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg Drilling Breaks after Gas during after before 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine filings ft ft ft units units units ppg ppg ppg % Lithology Sltst SSt Sd Clyst 24 hr Recap: Cont to drill ahead to 7282'. Ruptured shock hose, POOH to shoe,reapir same. Bypass mud line, break eire, eire @ bpm. Repaired hose TIH to 7072'. Ream from 7072'-7282', Cont to Drill ahead to 7831'. Washed out a-ring on Standpipe, POOH 2 stnds and repair. Circ on injection pump line while repairing. * 3 Sample catchers on Location: L..Moberg, J.McNaught, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00 / man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone / Jim Carroll I Doug Wilson * 10000 Current 24 hr Avg 24 hr Max Pump and Flow Data 0 ftIhr 116 ftIhr ( 274 ftIhr @ 8056' Pump 1 75 spm Flow rate 636 gpm 0 units 158 unitl ( 761 units @ 8622' Pump 2 74 10.6 gps - Deg F ( degF@ Pump Liner 6" x 12 in. SPP 3575 I I I I I I I I I I I I I I I I I I I sper"r"\{-sun o A I L...L... I N G seA v I r::: e s Customer: Well: Area: Lease: Rig: Job No.: Mudlogger's Morning Report Mud Wt In Mud Wt Out 10.65 ppg 10.65 ppg Visc 60 secs PV 30 cp API filt YP 11 Ibs/100ft2 -- 6 Type: RPM: HCM605Z Bit Size: 108 Hrs. On Bit: 17 Trip Depth: Short Trip Depth Tight Spots: 7837 ft Trip Gas: ft Short Trip Gas: Current Lithology: 80 % Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: 15 3/25/2005 9098'm /9001't 1260' POOH Goerlich/Ross ml HTHP ~ m Mud Wt at Max Gas 10.65 ppg Gels 7 \ 18 \ 19 ES 552 Sd 0.2 % 81/2 37.4 x TFA: 0.7520 -- Footage for Bit Run 4573' Jets: 5 x 14 x -- Total Revs on Bit: 692 k 90 Mud Cut: Mud Cut: ppm Na ppm o ft ppg Trip CI: Na ppg Short Trip CI: Feet of Fill on Bottom: SST 15 % Tuff % 7931 ft 128 units 10.65 ppg 8122 ft 161 units 10.65 ppg 8217 ft 238 units 10.65 ppg Depth Drill Rate during before to to to to 5 % Sh % Connection Gas and Mud Cut 8308 ft 265 units 10.65 ppg 8408 ft 393 units 10.65 ppg 8506 ft 216 units 10.65 ppg 8598 8696 8980 ft 242 units 10.65 ppg ft 245 units 10.65 ppg ft 200 units 10.65 ppg Drilling Breaks after Gas during after % Lithology Sltst SSt Sd Clysl before 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine filings 24 hr Recap: Cont to repair SPP. Test to 4000 psi. RIH 2 Stnds wash from 7827' to 7837' , (Slick). No Fill. Cont to Drill Ahead pumping sweeps @ 8050', 8425', Drill to 9090' MD /9000.77' TVD WELL TD. CBU, Cire/Cond mud. Pump slug POOH * 3 Sample catchers on Location: L..Moberg, J.McNaught, L.Grove Daily cost: Full Mudlogging + 3 Sample Catchers ($275.00/ man/day) + Extra Mudlogger + Pit Monitor-7 extra pits Daily cost: = $1800.00 + $825.00 + $700 + $220 = $ 3545.00 Logging Engineer: Ian Johnstone 1 Jim Carroll I Doug Wilson * units = 100% Gas In Air 10000 I I I I I I I I I I I I I I I I I I I Customer: Well: Area: Lease: Rig: Job No.: Kerr McGee Kigun #1 North Slope NW Milne Point Nabors 27E AK-AM-3586950 Report No.: Date: Depth Footage Last 24 hrs: Rig Activity: Report For: spe....,....,v-sun 1:1 A I L...L... I N G 5 = A V I c: = 5 Mudlogger's Morning Report 16 3/26/2005 9098'm /9001't o POOH Goerlich/Ross Current 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 0 ftIhr ftIhr ( ftIhr @ Pump 1 spm Flow rate Gas* 0 units 40 unit! ( 218 units @ Pump 2 0 Temp Out Deg F ( degF@ Pump Liner 6" x 12 SPP Mud Wt In Mud Wt Out 10.70 ppg 10.70 ppg Visc 70 sees PV 33 cp API filt YP 11 Ibs/100ft2 -- ml HTHP ~mMudWtatMaxGas 10.70 ppg Gels 7 \ 18 \ 19 ES 635 Sd 0.1 % Bit No.: Wt On Bit: Type: RPM: x x TFA: -- Footage for Bit Run Bit Size: Hrs. On Bit: Jets: x -- Total Revs on Bit: 9098 ft Trip Gas: ft Short Trip Gas: Trip Depth: Short Trip Depth Tight Spots: 218 Mud Cut: Na ppg Trip CI: Mud Cut: ppg Short Trip CI: Feet of Fill on Bottom: Current Lithology: 80 % 15 % Tuff Sh % SST 5 % ft ft ft ppg ppg ppg Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg units units units Drilling Breaks Drill Rate during Depth Gas during after before after before to to to to Na ppm ppm o ft % ft ft ft units units units ppg ppg ppg % Lithology Sltst SSt Sd Clysl 24 hr Recap: POOH LID BHA and HWT DP. TIH Open ended to set plugs. TIH to 8998' Wash to 9098'. Circ/Cond mud. Pump CMT, POOH 15 Stnds to 7671', Pump gel plug pull 3 stnds to 7385' Pump CMT, POOH 16 Stnds to 5859' Circ cond mud. POOH, UD D.P. Sample Catchers off location 3/25/05 Daily cost: Full Mudlogging + Extra Mudlogger + Pit Monitor-i' extra pits Daily cost: = $1800.00 + $700 + $220 = $ 2720.00 Logging Engineer: Ian Johnstone 1 Jim Carroll 1 Doug Wilson 24 hour accumulation of Steel Filings from Possum Belly Magnets: Description of filings: fine filings * 10000 units = 100% Gas In Air spe.....,.....,v- sun C R I '-'-I N I:i 5 E R V I r::: E 5 WELL NAME OPERA TOR CONTRACTOR: Kigun # IIBPOl Kerr McGee Corp Nabors 27E LOCATION: Spy Island AREA: North Slope STATE: Alas~ BIT RECORD BiT Bit Bit Depth Depth 1 Footage Bit '-I TFA I AVG WOB RPM PUMP PUMP Bit I Bit HHP Krevs Bit Grade Remarks # Type Size IN OUT Hours ROP Press GPM Psi Drop It! s HHP I in2 WINDOW MILL 11.75 1913.0 1968.0 55.0 Mill Window in 133/8' CSG HTC GT-CM1 12.25' 1968.0 2794.0 826.0 4.7 0.6990 176.0 20 80 2100 690 846 317 3.00 29 Lost in hole Bit+Motor lost in hole-plug back 2 HTC GT-CM1 12.25' 2433.0 3766.0 1333.0 15.9 0.6990 83.8 15 95 2985 769 905 321 3.00 214.2 1-1-WT-A-E-1-NO-CP Sidetrack past fish 3 Core Bit 8.5' 3766.0 3826.0 60.0 1.6 NlA 37.0 10 91 280 186 NlA 231 NlA 10.7 1-1-NO-A-N-I-NO- TO 75% recovery 4RR HTC GT-CM1 12.25' 3826.0 4525.0 699.0 5.2 1.0710 134.0 15 100 2260 772 474 231 2.00 101.3 1-1-CI-C-F-1-SD- TO 9 5/8' Csg point 5RR HTC GT-CM1 12.25' 4525.0 4525.0 0.0 N/A 0.6990 N/A N/A 0 314 185 N/A N/A NlA NlA 1-1-WT-A-E-1-NO-TO Wiper Trip 6 HTC HCMG05Z 8.5' 4525.0 9098.0 4573.0 37.4 0.7520 122.3 15 108 3500 625 682 267 4.00 692.4 1-1-WT-A-E-1-NO-TO T.D.Well - - - - - - - - - - - - - - - - - - - Sperry-Sun Casing Record Company: Kerr McGee Corporation Lease Drillinq Services Well Kigun # 1/BP01 Area North Slope - Alaska 13 3/S" Window 1913-1968 ft MD Rig Nabors 27E Job No: AK-AM-00035S6950 95/S" 4511 ft MD Oil-based Mud Record Mud Co Baroid Spud Date 9 March 2005 7" Liner N/A TD Date: 24 March 2005 Date Depth Wt Vis PV YP Gels Filt R600/300 Cake NAP-H2O Sd AlkPOM THTS CaCI2 NaCI(Sol-lnsl) WPS Elec Stb Remarks ft-MD ppg see cP Ib/100 1b/100fl" HTHP 200/100/6/3 HTHP corr% % % ml ml ppb ppb ppm volt %b/vol 9-Mar 1948 9.60 60 19 11 6/8/10 5.6 491301231156/5 2 12.2 71-15 1.0 1.4 12.09 8.23/0.7 278.8k 671 10.4 M/U mill BHA 10-Mar 1960 9.60 61 19 15 10/18/19 5.5 53134/26/171817 2 12.1 70-16 2.25 1.3 11.12 10.04/1.36 273.9k 705 10.3 mill window 11-Mar 2794 9.40 50 19 10 5/12/14 4.3 48/29/22/1415/4 2 14.3 70-14 3 1.3 11.12 7.8/0.72 278.2k 707 16.0 Drill 12~" 12-Mar 2794 9.40 50 13 10 6/11/12 4.3 36/23117/11/413 2 10.3 83-17 0.1 2.6 1.3 11.12 8.52/- 271.9K 676 7.7 Fishing 13-Mar 2440 9.80 58 20 11 7/15/15 4.4 51131122/141413 2 12.3 72-14 2.6 1.3 11.12 7.8/0.72 278.2k 607 8.8 Pump k/o plug 14-Mar 3766 9.90 53 22 11 6/16/18 4.2 55/33/24116/5/4 2 11.4 72-15 2.4 1.3 11.12 7.071- 257k 586 6.2 K/O-Drill 12~" 15-Mar 3766 9.80 53 21 11 7/14/15 4.3 53/32/24115/6/5 2 10.2 72-16 0.2 2.3 1.3 11.12 8.52/- 259.3k 650 4.8 POH-P/U core 16-Mar 4286 9.90 54 21 9 6/14119 3.8 51130121/131413 2 9.8 70-18 1.5 1.5 1.8 15.97 8.92/0.27 282.9k 575 4.1 9 5/8" Csg point. 17 -Mar 4525 10.20 56 20 11 7/16/16 3.9 51/31/23115/6/5 2 9.9 71-17 0.8 2.4 1.5 13.06 9.78/1.03 277k 582 1.7 Wireline 18-Mar 4525 10.25 73 23 10 7/19/23 4.0 56/33/25/15/5/4 2 9.9 71-17 0.8 1.5 1.8 15.97 7.74/- 284.7k 583 1.5 Wireline 19-Mar 4525 10.30 67 23 10 8/18/23 3.6 56/33/25/15/5/4 2 10.6 68-19 0.6 1.6 2.2 19.85 7.62/1.81 292k 430 3.3 TLClogs 20-Mar 4525 10.30 68 21 9 8/17/21 3.9 51130/23115/5/4 2 11.2 71-16 0.5 2.25 1.7 15 5.871- 271.2k 590 3.3 Run 9 5/8"csg 21-Mar 4525 10.20 73 26 11 7/17/20 3.6 63/37/27/17/5/4 2 10.6 67-20 0.7 1.5 2 17.91 9.8/1.67 283.3k 544 4.0 Drill 8Y2" Hole 22-Mar 6727 10.60 64 32 12 9/19/- 3.8 76/4413212016/5 2 11.7 64-22 0.3 1.6 2 17.91 8.58/- 255.7k 631 3.5 Drill 8Y2" Hole 23-Mar 7837 10.65 63 32 12 7/19/22 3.8 76/44133/20/6/5 2 12.4 61-24 0.2 1.7 2.3 20.82 9.85/- 267.2k 588 5.2 Drill 8Y2" Hole 24-Mar 9098 10.70 55 30 17 10/20/26 3.6 77/47/35/23/7/6 2 13.4 62-22 0.1 1.7 2.1 18.88 10.45/- 275.6k 605 6.7 T.D.Well 25-Mar 9098 10.70 65 32 12 9/19/21 3.6 76/44/32/22/6/5 2 13.4 61-23 0.1 1.7 2.0 17.91 11.471- 267.1k 550 6.7 Set cmt plugs 26-Mar 27 -Mar - - -- - - - -- - -- ------ - I I sperry...sun DRILLING SERVICES Show Report Well Name: Location: Operator: Report Prepared 6y: Report Delivered To: I Depth (MD) (TVD) to to DatelTime: I Interpretation: High gas corresponds to Sandstone. Sandstone-fine to medium grain in clay matrix, small dk brown droplets oil in sample, 60% medium gold fluorescence. good fast blue milky white cut fluorescence, very pale light brown white light cut. ROP: Before 1 Max / After 185 fph / 88 fph / 68 fph GAS: Before / Max / After 110 units / 864 units 1165 units I I Depth hlorides (ppm) ;:: NA -----...---.................---------------....-...--.. C1 I ppm ppm ppm (Steam Still PPM's in 1000's) Hydrocarbon Ratios C1/C2 C11C3 C1/C4 C1/C5 1000.0 NPH 100.0 I pïJ, Non-PrOducible Hydrocarbons Mud Chlorides (ppm) ;:: ----...----...------------------...-.......-...-......... I Gas Hydrocarbon Ratios C1/C2 ;:: C1/C3 ;:: C1/C4 C1/C5 I 10.0 Oil I NPH 1.0 pq Non-Producible Hydrocarbons Mud Chlorides (ppm);:: -----------------------..;----------_...... Hydrocarbon Ratios C1 C4 I Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 I 1000.0 NPH -' -- 100.0 ..~,.~.,~,:;..cc;;;..:;,;.- _.....~ ~-;;;;:~.,.~~- I ~ Non-PrOducible Hydrocarbons Gas Mud Chlorides (ppm) ;:: I ----...----------------------------...-.. ......................---- \I"'.---¡ I Hydrocarbon Ratios C1/C2 ;:: C1/C3 C1/C4 C1/C5 NPH 1.0 I I I 10.0 ~----~-_.~- Oil ,-"/!!Ln!I!!!IIL- - - - _ - -- Hydrocarbons C1 C5 I I I sperry...sun - DRILLING SERVICES Show Report Well Name: Location: Operator: Report Prepared By: Report Delivered To: Depth (MD) (TVD) ,I I I I I I I Interpretation: High gas corresponds to Sandstone. Sandstone-fine to very fine grain, very friable, evenly distributed oil in sample, 80% medium gold fluorescence, good fast light yellow cut ftuorescence, pale brown white light cut, medium brown stain ROP: Before / Max / After 140 fph fi51 fph / 35 fph GAS: Before / Max / After 220 units / 382 units / 205 units Depth . ---'Flô"WTiñé ppm ppm ppm (Steam Still PPM's in 1000's) Mud Chlorides (ppm) =: Ci C1 C5 Hydrocarbon Ratios Ci/C2 C1fC3 =: C1/C4 C1/C5 =: 1000.0 NPH nNon-producible Hydrocarbons 100.0 - . - -' -- ~---".,.,~....~.._,~ '--'--~-----"- -~ Mud Chlorides (ppm) =: Gas _.._.-~~._-~..--~._-'-=~~;; """ -- ~.~. ----- ----- Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/C5 10.0 NPH 1.0 -....-...-.............--....------------...----...---....-------...... Oil I Hydrocarbon Ratios I I I I I I I I Depth fl Non-Producible Hydrocarbons ppm ppm ppm (Steam Still PPM's in 1000's) C1 C2 C3 C4 C5 Mud Chlorides (ppm) =: C1 C5 ...-.................-----...--------------.......-....---..... Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 =: C1/C5 =: 1000.0 NPH 100.0 ...e_~"~_~....,¡Ø' .:;.;;~ -- Depth I; Non-Producible Hydrocarbons Gas ppm ppm ppm (Steam Still PPM's in 1000's) -....'-- Mud Chlorides (ppm) =: ---' -"",,--' ------ Hydrocarbon Ratios C1/C2 C1/C3 C1/C4 C1/CS 10.0 -..----.....----- Oil NPH 1.0 Non-Producible Hydrocarbons I Halliburton Global DEFINITIVE I Company: Field: Site: Well: Wellpath: Survey: Kerr McGee NW Milne Point West Milne Prospect Tuvaaq State #1 Kigun#1 BP01 Date: 4/6/2005 Time: 14:57:06 Page: Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Vertical (TVD) Reference: Tuvaaq State #1 35.0 Section (VS) Reference: Well (0.00N,0.00E,300.09Azi) Survey Calculation Method: Minimum Curvature Db: Oracle Start Date: I I Company: Tool: Engineer: Tied-to: Field: NW Milne Point I Map System:US State Plane Coordinate System 1927 Goo Datum: NAD27 (Clarke 1866) Sys Datum: Mean Sea Level Site: West Milne Prospect Map Zone: Coordinate System: Geomagnetic Model: Alaska. Zone 4 Well Centre bggm2004 I I Site Position: Northing: 6050899.00 ft Latitude: 70 33 1.036 N From: Map Easting: 507331.00 ft Longitude: 149 56 23.618 W Position Uncertainty: 0.00 ft North Reference: True Ground Level: 0.00 ft Grid Convergence: 0.06 deg Well: Tuvaaq State #1 Slot Name: Well Position: +N/-S 0.00 ft Northing: 6050899.00 ft Latitude: 70 33 1.036 N +E/-W -0.10 ft Easting : 507330.90 ft Longitude: 149 56 23.621 W Position Uncertainty: 0.00 ft Wellpath: Kigun#1 BP01 Drilled From: Kigun #1 506292323901 Tie-on Depth: 2429.99 ft Current Datum: Tuvaaq State #1 Height 35.03 ft Above System Datum: Mean Sea Level Magnetic Data: 3/9/2005 Declination: 24.32 deg Field Strength: 57593 nT Mag Dip Angle: 80.87 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 33.28 0.00 0.00 300.09 I' I I I Survey Program for Definitive Well path Date: 4/6/2005 Validated: Yes Version: Actual From To Survey Toolcode Tool Name ft ft 138.28 1837.51 Tuvaaq State #1 (138.28-17593.34) (4) MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC 1913.00 2429.99 Kigun#1 (1913.00-2712.94) (2) MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC 2433.00 8986.37 Kigun#1 BP01 (2433.00-8986.37) MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC Survey MD loci Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft 33.28 0.00 0.00 33.28 -1.75 0.00 0.00 6050899.00 507330.90 TIE LINE 138.28 0.11 87.11 138.28 103.25 0.01 0.10 6050899.01 507331.00 MWD+IFR-AK-CAZ-SC 223.96 1.13 299.44 223.95 188.92 0.42 -0.55 6050899.42 507330.35 MWD+IFR-AK-CAZ-SC 318.37 1.87 297.45 318.33 283.30 1.59 -2.73 6050900.59 507328.17 MWD+I FR-AK-CAZ-SC 408.54 3.27 292.46 408.41 373.38 3.25 -6.41 6050902.25 507324.48 MWD+I FR-AK-CAZ-SC 438.47 3.36 294.60 438.29 403.26 3.94 -8.00 6050902.94 507322.90 MWD+IFR-AK-CAZ-SC 529.32 5.11 295.86 528.89 493.86 6.82 -14.06 6050905.80 507316.83 MWD+I FR-AK-CAZ-SC 624.92 8.01 298.28 623.85 588.82 11.83 -23.76 6050910.81 507307.13 MWD+IFR-AK-CAZ-SC 715.56 8.98 298.63 713.50 678.47 18.21 -35.53 6050917 .18 507295.35 MWD+IFR-AK-CAZ-SC 831.85 12.98 290.88 827.64 792.61 27.22 -55.71 6050926.16 507275.17 MWD+IFR-AK-CAZ-SC 892.84 12.91 290.45 887.08 852.05 32.04 -68.49 6050930.97 507262.38 MWD+I FR-AK-CAZ-SC 986.85 14.23 295.11 978.47 943.44 40.62 -88.80 6050939.52 507242.07 MWD+I FR-AK-CAZ-SC 1075.73 15.94 294.77 1064.28 1029.25 50.37 -109.77 6050949.25 507221.09 MWD+IFR-AK-CAZ-SC 1171.70 17.27 295.43 1156.25 1121.22 62.00 -134.60 6050960.86 507196.25 MWD+IFR-AK-CAZ-SC 1266.92 20.30 296.02 1246.38 1211.35 75.32 -162.22 6050974.15 507168.62 MWD+I FR-AK-CAZ-SC 1362.45 22.58 296.48 1335.30 1300.27 90.77 -193.53 6050989.57 507137.30 MWD+IFR-AK-CAZ-SC 1456.21 22.69 298.60 1421.84 1386.81 107.46 -225.52 6051006.22 507105.30 MWD+I FR-AK-CAZ-SC I I I I I I I I I Halliburton Global I Company: Kerr McGee Date: 4/6/2005 Time: 14:57:06 Page: 2 Field: NW Milne Point Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Site: West Milne Prospect Vertical (TVD) Reference: TuvaaqState #1 35.0 I Well: Tuvaaq State #1 Section (VS) Reference: Well (0.00N,0.00E,300.09Azi) Wellpath: Kigun#1 BP01 Survey Calculation Method: Minimum Curvature Db: Oracle Survey I MD Incl Azim TVD Sys TV]} N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft 1551.61 21.96 296.49 1510.09 1475.06 124.22 -257.64 6051022.95 507073.16 MWD+I FR-AK-CAZ-SC 1646.38 21.23 297.30 1598.20 1563.17 139.99 -288.75 6051038.69 507042.04 MWD+IFR-AK-CAZ-SC I 1741.64 19.69 297.07 1687.45 1652..42 155.21 -318.37 6051053.88 507012.41 MWD+IFR-AK-CAZ-SC 1837.51 20.72 296.39 1777.42 1742..39 170.10 -347.94 6051068.74 506982.83 MWD+IFR-AK-CAZ-SC 1913.00 21.68 295.42 1847.80 1812.77 182.02 -372.50 6051080.63 506958.26 MWD+IFR-AK-CAZ-SC 1964.10 23.26 299.04 1895.02 1859.99 190.97 -389.85 6051089.56 506940.90 MWD+I FR-AK-CAZ-SC I 2056.07 20.78 302.03 1980.28 1945.25 208.44 -419.56 6051107.00 506911.18 MWD+IFR-AK-CAZ-SC 2144.97 18.83 305.57 2063.92 2028.89 225.15 -444.60 6051123.69 506886.12 MWD+IFR-AK-CAZ-SC 2243.45 17.11 310.38 2157.60 2122.57 243.78 -468.57 6051142.30 506862.14 MWD+I FR-AK-CAZ-SC I' 2336.04 14.99 316.03 2246.58 2211.55 261.23 -487.26 6051159.72 506843.43 MWD+I FR-AK-CAZ-SC 2429.99 13.43 316.57 2337.65 2302.62 277.90 -503.20 6051176.37 506827.48 MWD+IFR-AK-CAZ-SC 2433.00 13.37 316.55 2340.58 2305.55 278.40 -503.68 6051176.88 506827.00 MWD+I FR-AK-CAZ-SC 2524.43 10.33 291.54 2430.11 2395.08 289.10 -518.59 6051187.56 506812.08 MWD+I FR-AK-CAZ-SC I 2618.16 8.11 279.94 2522.63 2487.60 293.32 -532.92 6051191.77 506797.75 MWD+IFR-AK-CAZ-SC 2712.41 3.92 255.67 2616.36 2581.33 293.68 -542.59 6051192.11 506788.07 MWD+IFR-AK-CAZ-SC 2805.94 2.49 196.17 2709.76 2674.73 290.93 -546.26 6051189.36 506784.41 MWD+IFR-AK-CAZ-SC 2899.80 1.58 152.92 2803.56 2768.53 287.82 -546.24 6051186.25 506784.43 MWD+IFR-AK-CAZ-SC I 2993.69 4.30 75.94 2897.35 2862.32 287.52 -542.23 6051185.96 506788.44 MWD+I FR-AK-CAZ-SC 3088.24 3.02 51.07 2991.71 2956.68 289.95 -536.85 6051188.39 506793.81 MWD+I FR-AK-CAZ-SC 3182.17 2.02 21.33 3085.55 3050.52 293.05 -534.33 6051191.49 506796.34 MWD+I FR-AK-CAZ-SC 3275.98 0.47 21.92 3179.33 3144.30 294.94 -533.58 6051193.39 506797.08 MWD+I FR-AK-CAZ-SC I 3369.92 0.13 285.52 3273.27 3238.24 295.33 -533.54 6051193.77 506797.12 MWD+IFR-AK-CAZ-SC 3466.16 0.19 267.83 3369.51 3334.48 295.35 -533.81 6051193.80 506796.86 MWD+IFR-AK-CAZ-SC 3558.78 0.27 201.90 3462.13 3427.10 295.15 -534.04 6051193.59 506796.62 MWD+I FR-AK-CAZ-SC I 3650.95 0.51 173.33 3554.30 3519.27 294.54 -534.07 6051192.98 506796.59 MWD+I FR-AK-CAZ-SC 3750.31 0.53 190.13 3653.66 3618.63 293.64 -534.10 6051192.09 506796.56 MWD+I FR-AK-CAZ-SC 3846.67 0.60 222.20 3750.01 3714.98 292.83 -534.52 6051191.27 506796.14 MWD+I FR-AK-CAZ-SC 3941.58 0.83 225.12 3844.91 3809.88 291.98 -535.34 6051190.42 506795.32 MWD+I FR-AK-CAZ-SC I 4037.60 0.71 212.08 3940.93 3905.90 290.98 -536.15 6051189.42 506794.52 MWD+I FR-AK-CAZ-SC 4130.01 0.59 198.33 4033.33 3998.30 290.05 -536.60 6051188.49 506794.06 MWD+I FR-AK-CAZ-SC 4223.61 0.10 242.48 4126.93 4091.90 289.55 -536.83 6051187.99 506793.84 MWD+I FR-AK-CAZ-SC 4316.16 0.01 115.06 4219.48 4184.45 289.51 -536.89 6051187.95 506793.78 MWD+I FR-AK-CAZ-SC I 4410.79 0.20 256.16 4314.11 4279.08 289.47 -537.04 6051187.91 506793.62 MWD+I FR-AK-CAZ-SC 4509.98 0.35 261.69 4413.30 4378.27 289.38 -537.51 6051187.82 506793.16 MWD+I FR-AK-CAZ-SC 4606.32 0.43 291.68 4509.63 4474.60 289.47 -538.14 6051187.91 506792.53 MWD+I FR-AK-CAZ-SC I 4698.98 G.48 288.88 4602.29 4567 .26 289.73 -538.84 6051188.17 506791.83 MWD+IFR-AK-CAZ-SC 4793.54 0.73 268.06 4696.85 4661.82 289.84 -539.82 6051188.28 506790.85 MWD+I FR-AK-CAZ-SC 4888.22 0.76 281.60 4791.52 4756.49 289.95 -541.04 6051188.38 506789.63 MWD+IFR-AK-CAZ-SC 4982.82 0.76 264.17 4886.11 4851.08 290.01 -542.28 6051188.44 506788.39 MWD+IFR-AK-CAZ-SC I 5077.39 0.84 266.32 4980.67 494ei.64 289.90 -543.59 6051188.33 506787.07 MWD+IFR-AK-CAZ-SC 5173.14 0.88 264.79 5076.41 5041.38 289.79 -545.03 6051188.22 506785.64 MWD+IFR-AK-CAZ-SC 5268.37 0.59 278.52 5171.63 513Ei.60 289.80 -546.24 6051188.23 506784.43 MWD+IFR-AK-CAZ-SC 5362.11 0.81 281.18 5265.37 5230.34 290.00 -547.37 6051188.43 506783.30 MWD+IFR-AK-CAZ-SC I 5457.08 0.69 287.80 5360.33 5325.30 290.30 -548.57 6051188.73 506782.10 MWD+I FR-AK-CAZ-SC 5552.82 0.90 278.98 5456.06 5421.03 290.59 -549.86 6051189.02 506780.81 MWD+I FR-AK-CAZ-SC 5650.13 0.94 283.99 5553.36 5518.33 290.91 -551.39 6051189.33 506779.28 MWD+I FR-AK-CAZ-SC 5742.50 0.87 279.39 5645.71 5610.68 291.20 -552.82 6051189.63 506777.85 MWD+IFR-AK-CAZ-SC I 5838.45 0.90 285.28 5741.65 5706.62 291.52 -554.26 6051189.94 506776.40 MWD+IFR-AK-CAZ-SC 5933.63 0.92 270.06 5836.82 5801.79 291.72 -555.75 6051190.14 506774.92 MWD+I FR-AK-CAZ-SC 6029.19 0.89 275.14 5932.37 5897.34 291.79 -557.26 6051190.21 506773.41 MWD+I FR-AK-CAZ-SC I 6124.59 1.01 281.97 6027.76 5992.73 292.03 -558.82 6051190.45 506771.85 MWD+I FR-AK-CAZ-SC 6219.51 1.10 278.33 6122.66 6087'.63 292.33 -560.54 6051190.75 506770.13 MWD+I FR-AK-CAZ-SC 6315.42 0.84 276.40 6218.56 618:1.53 292.54 -562.15 6051190.96 506768.52 MWD+I FR-AK-CAZ-SC I I I Company: Kerr McGee Field: NW Milne Point Site: West Milne Prospect I Well: Tuvaaq State #1 Well path: Kigun#1 BP01 Survey I I MD lncl Azim ft deg deg 6410.31 0.93 300.91 I 6506.05 1.25 310.88 6600.56 1.17 312.58 6697.39 1.15 310.55 6791.93 0.95 310.83 I 6887.33 0.80 330.84 6979.16 0.80 320.71 7076.80 0.65 318.11 7169.48 0.77 312.90 I 7268.60 0.89 316.67 7363.68 0.69 326.18 7459.11 0.74 337.40 I 7554.28 0.58 353.74 7649.62 0.50 358.27 7745.30 0.46 346.95 7840.16 0.49 344.40 I 7934.15 0.77 347.47 8027.39 0.63 348.34 8124.85 0.73 355.28 8220.06 0.77 359.71 I 8314.60 0.85 355.91 8413.00 0.29 17.47 8508.13 1.14 6.37 8604.24 1.15 6.45 I 8700.04 1.20 5.72 8795.38 1.43 14.38 8891.16 1.70 11.42 I 8986.37 2.15 13.32 9098.00 2.15 13.32 I I I I I I I Halliburton Global Date: 4/6/2005 Time: 14:57:06 Page: 3 Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Vertical (TVD) Reference: Tuvaaq State #1 35.0 Section (VS) Reference: Well (0.00N,0.00E,300.09Azi) Survey Calculation Method: Minimum Curvature Db: Oracle TVD Sys TVD N/S EIW MapN MapE Tool ft ft ft ft ft ft 6313.43 6278.40 293.02 -563.50 6051191.43 506767.17 MWD+I FR-AK-CAZ-SC 6409.16 6374.13 294.10 -564.95 6051192.51 506765.71 MWD+IFR-AK-CAZ-SC 6503.65 6468.62 295.43 -566.44 6051193.84 506764.22 MWD+IFR-AK-CAZ-SC 6600.46 6565.43 296.73 -567.91 6051195.14 506762.75 MWD+IFR-AK-CAZ-SC 6694.98 6659.95 297.86 -569.22 6051196.26 506761.44 MWD+IFR-AK-CAZ-SC 6790.37 6755.34 298.96 -570.15 6051197.36 506760.51 MWD+IFR-AK-CAZ-SC 6882.19 6847.16 300.01 -570.87 6051198.42 506759.80 MWD+IFR-AK-CAZ-SC 6979.82 6944.79 300.95 -571.67 6051199.36 506758.99 MWD+I FR-AK-CAZ-SC 7072.50 7037.47 301.77 -572.47 6051200.17 506758.19 MWD+IFR-AK-CAZ-SC 7171.61 7136.58 302.78 -573.49 6051201.18 506757.17 MWD+IFR-AK-CAZ-SC 7266.68 7231.65 303.79 -574.32 6051202.20 506756.34 MWD+I FR-AK-CAZ-SC 7362.10 7327.07 304.84 -574.87 6051203.24 506755.78 MWD+IFR-AK-CAZ-SC 7457.26 7422.23 305.89 -575.16 6051204.29 506755.49 MWD+IFR-AK-CAZ-SC 7552.60 7517.57 306.78 -575.23 6051205.18 506755.43 MWD+IFR-AK-CAZ-SC 7648.27 7613.24 307.57 -575.33 6051205.97 506755.33 MWD+IFR-AK-CAZ-SC 7743.13 7708.10 308.33 -575.52 6051206.73 506755.13 MWD+IFR-AK-CAZ-SC 7837.12 7802.09 309.34 -575.77 6051207.74 506754.89 MWD+IFR-AK-CAZ-SC 7930.35 7895.32 310.45 -576.01 6051208.85 506754.65 MWD+IFR-AK-CAZ-SC 8027.80 7992.77 311.60 -576.16 6051209.99 506754.49 MWD+I FR-AK-CAZ-SC 8123.00 8087.97 312.84 -576.22 6051211.24 506754.43 MWD+IFR-AK-CAZ-SC 8217.53 8182.50 314.17 -576.27 6051212.57 506754.38 MWD+I FR-AK-CAZ-SC 8315.93 8280.90 315.14 -576.25 6051213.54 506754.40 MWD+IFR-AK-CAZ-SC 8411.05 8376.02 316.31 -576.07 6051214.71 506754.57 MWD+IFR-AK-CAZ-SC 8507.14 8472.11 318.22 -575.86 6051216.62 506754.79 MWD+I FR-AK-CAZ-SC 8602.92 8567.89 320.17 -575.65 6051218.57 506754.99 MWD+IFR-AK-CAZ-SC 8698.24 8663.21 322.32 -575.25 6051220.72 506755.39 MWD+IFR-AK-CAZ-SC 8793.98 8758.95 324.87 -574.68 6051223.27 506755.96 MWD+I FR-AK-CAZ-SC 8889.14 8854.11 327.99 -573.98 6051226.39 506756.65 MWD+IFR-AK-CAZ-SC 9000.69 8965.66 332.07 -573.02 6051230.47 506757.61 MWD I I I I I I I I I I I I I I I I I I I Halliburton Global DEFINITIVE Company: Field: Site: I Well: Wellpatb: Kerr McGee NW Milne Point West Milne Prospect Tuvaaq State #1 Kigljn #1 Date: 4/6/2005 Time: 14:56:42 Page: Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Vertical (TVD) Reference: Tuvaaq State #1 35.0 Section (VS) Reference: Well (0.00N,0.00E,300.66Azi) Survey Calculation Method: Minimum Curvature Db: Oracle Start Date: Survey: Company: Tool: Engineer: Tied-to: Field: NW Milne Point Map System:US State Plane Coordinate System 1927 Goo Datum: NAD27 (Clarke 1866) Sys Datum: Mean Sea Level Alaska, Zone 4 Well Centre bggm2004 Map Zone: Coordinate System: Geomagnetic Model: Site: West Milne Prospect Site Position: Northing: 6050899.00 ft Latitude: 70 33 1.036 N From: Map Easting: 507331.00 ft Longitude: 149 56 23.618 W Position Uncertainty: 0.00 ft North Reference: True Ground Level: 0.00 ft Grid Convergence: 0.06 deg Well: Tuvaaq State #1 Slot Name: Well Position: +N/-S 0.00 ft Northing: 6050899.00 ft Latitude: 70 33 1.036 N +E/-W -0.10 ft Easting : 507330.90 ft Longitude: 149 56 23.621 W Position Uncertainty: 0.00 ft Wellpath: Kigun #1 Drilled From: Tuvaaq State #1 506292323970 Tie-on Depth: 1837.51 ft Current Datum: Tuvaaq State #1 Height 35.03 ft Above System Datum: Mean Sea Level Magnetic Data: 3/9/2005 Declination: 24.32 deg Field Strength: 57593 nT Mag Dip Angle: 80.87 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 33.28 0.00 0.00 300.66 Survey Program for Definitive Wellpath Date: 4/6/2005 Validated: Yes Actual From To Survey ft ft 138.28 1837.51 Tuvaaq State #1 (138.28-17593.34) (4) 1913.00 2712.94 Kigun#1 (1913.00-2712.94) Version: 2 Toolcode Tool Name MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft -----.. -.----.,-...--- ----~-_._.- 33.28 0.00 0.00 33.28 -1.75 0.00 0.00 6050899.00 507330.90 TIE LINE 138.28 0.11 87.11 138.28 103.25 0.01 0.10 6050899.01 507331.00 MWD+IFR-AK-CAZ-SC 223.96 1.13 299.44 223.95 188.92 0.42 -0.55 6050899.42 507330.35 MWD+I FR-AK-CAZ-SC 318.37 1.87 297.45 318.33 283.30 1.59 -2.73 6050900.59 507328.17 MWD+I FR-AK-CAZ-SC 408.54 3.27 292.46 408.41 373.38 3.25 -6.41 6050902.25 507324.48 MWD+I FR-AK-CAZ-SC 438.47 3.36 294.60 438.29 403.26 3.94 -8.00 6050902.94 507322.90 MWD+IFR-AK-CAZ-SC 529.32 5.11 295.86 528.89 493.86 6.82 -14.06 6050905.80 507316.83 MWD+I FR-AK-CAZ-SC 624.92 8.01 298.28 623.85 588.82 11.83 -23.76 6050910.81 507307.13 MWD+IFR-AK-CAZ-SC 715.56 8.98 298.63 713.50 678.47 18.21 -35.53 6050917.18 507295.35 MWD+IFR-AK-CAZ-SC 831.85 12.98 290.88 827.64 792.61 27.22 -55.71 6050926.16 507275.17 MWD+IFR-AK-CAZ-SC 892.84 12.91 290.45 887.08 852.05 32.04 -68.49 6050930.97 507262.38 MWD+IFR-AK-CAZ-SC 986.85 14.23 295.11 978.47 943.44 40.62 -88.80 6050939.52 507242.07 MWD+IFR-AK-CAZ-SC 1075.73 15.94 294.77 1064.28 1029.25 50.37 -109.77 6050949.25 507221.09 MWD+IFR-AK-CAZ-SC 1171.70 17.27 295.43 1156.25 1121.22 62.00 -134.60 6050960.86 507196.25 MWD+IFR-AK-CAZ-SC 1266.92 20.30 296.02 1246.38 1211.35 75.32 -162.22 6050974.15 507168.62 MWD+IFR-AK-CAZ-SC 1362.45 22.58 296.48 1335.30 1300.27 90.77 -193.53 6050989.57 507137.30 MWD+IFR-AK-CAZ-SC 1456.21 22.69 298.60 1421.84 1386.81 107.46 -225.52 6051006.22 507105.30 MWD+IFR-AK-CAZ-SC 1551.61 21.96 296.49 1510.09 1475.06 124.22 -257.64 6051022.95 507073.16 MWD+I FR-AK-CAZ-SC I I I I I Halliburton Global Company: Kerr McGee Date: 4/6/2005 Time: 14:56:42 Page: 2 Field: NW Milne Point Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Site: West Milne Prospect Vertical (TVD) Reference: Tuvaaq State #1 35.0 Well: Tuvaaq State #1 Section (VS) Reference: Well (0.00N,O.00E,300.66Azi) Well path: Kigun #1 Survey Calculation Method: Minimum Curvature Db: Oracle Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft 1646.38 21.23 297.30 1598.20 1563.17 139.99 -288.75 6051038.69 507042.04 MWD+I FR-AK-CAZ-SC 1741.64 19.69 297.D7 1687.45 1652.42 155.21 -318.37 6051053.88 507012.41 MWD+IFR-AK-CAZ-SC 1837.51 20.72 296.39 1777.42 1742.39 170.10 -347.94 6051068.74 506982.83 MWD+IFR-AK-CAZ-SC 1913.00 21.68 295.42 1847.80 1812.77 182.02 -372.50 6051080.63 506958.26 MWD+IFR-AK-CAZ-SC 1964.10 23.26 299.04 1895.02 1859.99 190.97 -389.85 6051089.56 506940.90 MWD+I FR-AK-CAZ-SC 2056.07 20.78 302.03 1980.28 1945.25 208.44 -419.56 6051107.00 506911.18 MWD+I FR-AK-CAZ-SC 2144.97 18.83 305.57 2063.92 2028.89 225.15 -444.60 6051123.69 506886.12 MWD+IFR-AK-CAZ-SC 2243.45 17.11 310.38 2157.60 2122.57 243.78 -468.57 6051142.30 506862.14 MWD+IFR-AK-CAZ-SC 2336.04 14.99 316.03 2246.58 2211.55 261.23 -487.26 6051159.72 506843.43 MWD+IFR-AK-CAZ-SC 2429.99 13.43 316.57 2337.65 2302.62 277.90 -503.20 6051176.37 506827.48 MWD+IFR-AK-CAZ-SC 2524.95 11.68 315.72 2430.34 2395.31 292.79 -517.49 6051191.25 506813.17 MWD+IFR-AK-CAZ-SC 2618.53 9.69 316.22 2522.29 2487.26 305.26 -529.55 6051203.70 506801.10 MWD+IFR-AK-CAZ-SC 2712.94 9.26 315.75 2615.41 2580.38 316.44 -540.35 6051214.87 506790.29 MWD+IFR-AK-CAZ-SC 2794.00 9.26 315.75 2695.42 2660.39 325.78 -549.45 6051224.20 506781.18 MWD I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Kerr McGee Corp Kigun # 1 IBP01 20 25 o o 5 10 15 I 1000 _~__~.~qL:twlrdow ir 133/8: CSG 1~13 to 19391: rllt. I 4000 t 1 :> 5000 \ \ \ 6000 2000 3000 7000 8000 9000 10000 I . or »sidettack B*01 I 9098'VlD ! 9000.8' T'ICi 30 I I . I WHAT-IF HYDRAULICS REPORT I Operator: Kerr McGee Oil & Gas Well Name: Kigun #1 BP01 Run : 200 Input Information Hole Depth = Bit Depth = Spd = FracPres Bit Size = Bit TFA = I I I Bit Information Drop = Vel Pwr/A = 846 psig 317 tps 3 hpsi I Pipe Information Pipe I Depth (ft) 1.0 29.7 35.7 41.9 54.0 58.7 67.9 79.3 81.7 112.4 143.4 174.4 177.1 358.9 391.3 1083.9 2794.0 I I I Bit Motor Stabilizer MWD MWD MWD MWD MWD Sub Collar Collar Collar Sub Drill Pipe Jar Drill Pipe Drill Pipe Annulus Information Depth (ft) 88.0 1798.1 2056.0 2490.7 2523.1 2704.9 2707.6 2738.6 2769.6 2800.3 2802.7 2814.1 2823.3 2828.0 2840.1 2846.3 2852.3 2881.0 2882.0 I I I I Hole Casing Casing Casing Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole System Hydraulics I SurfDrp BitDrp SysDrp ECD Btm = S/Btm I I 04 :11 :20 PM = o psig 846 psig 2043 psig 9.70 ppg 0.08 ppg = = = March 31,2005 ID (in) 18.73 12.17 12.17 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 2794.0 ft 2794.0 ft 30.0 fpm 14.5 ppg 12.250 in 0.6990 in2 OD (in) 8.00 8.00 8.15 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 6.70 5.00 6.25 5.00 5.00 Pipe Drill Pipe Drill Pipe Heavy Weig Heavy Weig Jar Heavy Weig X-Over Suo Flex Flex Flex Float Sub Telemetry Directiona Processor Resistivit Gamma Ray Integral B Mud Motor Tricone StrnDrp AnnDrp ECD Shoe S/S MaxVel Pwr %@Bit Flow = Riser Flow = Cut Size = Cut Dens = ID (in) 3.00 5.00 2.88 1.92 1.92 1.92 1.92 1.92 3.25 2.81 2.81 2.81 2.81 3.00 2.50 3.00 4.28 OD (in) 5.00 5.00 5.00 5.00 6.25 5.00 6.70 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.15 8.00 8.00 340 hp 41.4 % 1178 psig 19 psig 9.68 ppg 0.08 ppg 202 fpm Drop (psig) o 11 2 3 o 1 o o o o o o o o o o o o o spei'i'v-sun DRILLING SERVICES A Halliburton Company Field: N. W. Milne Point Lease: Exploration 690 gpm 30 gpm 0.000 in 0.00 in Drop (psig) 1 2 5 31 61 23 46 58 1 26 26 26 2 114 47 434 274 Vel (fpm) 52 137 137 135 152 135 161 196 196 196 196 196 196 196 196 196 202 196 196 Model MdWt n k TauO Imp Imp/A Vel (fpm) 5903 2125 6406 14412 14412 14412 14412 14412 5030 6729 6729 6729 6729 5903 8501 5903 2906 Crit (fpm) 288 323 323 322 336 322 342 368 368 368 368 368 368 368 368 368 371 368 368 = 1064 Ibs 9 psig = ECD (ppg) 9.48 9.60 9.60 9.60 9.60 9.60 9.60 9.60 9.61 9.61 9.61 9.61 9.61 9.61 9.61 9.61 9.61 9.61 9.61 = Herschel-Bulkley = 9.40 ppg = 0.861 0.141 Isnlhf2 = 6.91 Ihf2 Crit (fpm) 353 312 357 408 408 408 408 408 345 360 360 360 360 353 373 353 323 S/S (ppg) 0.04 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 Page 1 0'2 I I . WHAT-IF Spef""f""V-SUn HYDRAULICS REPORT CRILLING SERVU::ES I A Halliburton Company Operator: Kerr McGee Oil & Gas Field: N. W. Milne Point I Well Name : Kigun #1 BP01 Lease: Exploration Run: 300 Input Information I Hole Depth = 3766.0 ft Flow = 699 gpm Model = Herschel-Bulkley Bit Depth = 3766.0 ft Riser Flow = 30 gpm MdWt = 9.80 ppg Spd = 30.0 fpm Cut Size = 0.000 in n = 0.875 FracPres = 14.5 ppg Cut Dens = 0.00 in k = 0.083 Isnlhf2 I Bit Size = 12.250 in TauO 4.13Ihf2 Bit TFA = 0.6990 in2 Bit Information I Drop 905 ~Sig Pwr 369 7l: Imp = 11381bs Vel = 321 ps %@Bit 41.0 00 Imp/A = 10 psig Pwr/A = 3 hpsi I Pipe Information DeWh Pipe OD ID Drop Vel Crit ( ) (in) (in) (psig) (fpm) (fpm) 1.0 Bit 8.00 3.00 1 5980 252 I 32.2 Motor 8.00 5.00 2 2153 226 37.4 Stabilizer 8.15 2.88 4 6489 254 43.4 MWD 8.00 1.92 29 14600 286 55.6 MWD 8.00 1.92 60 14600 286 60.5 MWD 8.00 1.92 24 14600 286 69.6 MWD 8.00 1.92 45 14600 286 I 80.9 MWD 8.00 1.92 55 14600 286 83.3 Sub 8.00 3.25 1 5096 247 113.9 Collar 8.00 2.81 25 6816 256 144.9 Collar 8.00 2.81 25 6816 256 175.9 Collar 8.00 2.81 25 6816 256 I 178.6 Sub 6.70 2.81 2 6816 256 360.4 Drill Pipe 5.00 3.00 110 5980 252 392.8 Jar 6.25 2.50 46 8612 264 1085.5 Drill Pipe 5.00 3.00 418 5980 252 3766.0 Drill Pipe 5.00 4.28 411 2944 233 I Annulus Information DeWh Hole ID Pipe OD Drop Vel Crit ECD S/S ( ) (in) (in) (psig) (fpm) (fpm) (ppg) (ppg) I 88.0 Casing 18.73 Drill Pipe 5.00 0 53 211 9.85 0.02 2056.0 Casin~ 12.17 Drill Pipe 5.00 8 139 233 9.92 0.05 2768.5 Open ole 12.25 Drill Pipe 5.00 3 137 233 9.92 0.05 3461.2 Open Hole 12.25 Heavy Weig 5.00 3 137 233 9.92 0.05 3493.6 Open Hole 12.25 Jar 6.25 0 154 242 9.92 0.05 3675.4 Open Hole 12.25 Heavy Weig 5.00 1 137 233 9.92 0.05 I 3678.1 Open Hole 12.25 X-Over Sub 6.70 0 163 246 9.92 0.05 3709.1 Open Hole 12.25 Flex 8.00 0 199 262 9.92 0.05 3740.1 Open Hole 12.25 Flex 8.00 0 199 262 9.92 0.05 3770.7 Open Hole 12.25 Flex 8.00 0 199 262 9.92 0.05 3773.1 Open Hole 12.25 Float Sub 8.00 0 199 262 9.92 0.05 I 3784.4 Open Hole 12.25 Telemetry 8.00 0 199 262 9.92 0.05 3793.5 Open Hole 12.25 Directiona 8.00 0 199 262 9.93 0.05 3798.4 Open Hole 12.25 Processor 8.00 0 199 262 9.93 0.05 3810.6 Open Hole 12.25 Resistivit 8.00 0 199 262 9.93 0.05 3816.6 Open Hole 12.25 Gamma Ray 8.00 0 199 262 9.93 0.05 3821.8 Open Hole 12.25 Int~ral B 8.15 0 205 265 9.93 0.05 I 3853.0 Open Hole 12.25 Mu Motor 8.00 0 199 262 9.93 0.05 3854.0 Open Hole 12.25 Tricone 8.00 0 199 262 9.93 0.05 System Hydraulics I SurfDrp = o psig StrnDrp 1284 psig BitDrp = 905 psig AnnDm 16 psig StSD~ = 2204 psig ECD hoe 9.97 ppg E D tm = 9.98 ppg S/S 0.05 ~pg S/Btm = 0.05 ppg MaxVel 205 pm I I 04 :11 :57 PM March 31, 2005 Page 10(2 I I . I I WHAT-IF HYDRAULICS REPORT Operator: Kerr McGee Oil & Gas Well Name: Kigun #1 BP01 Run : 500 Input Information Hole Depth = Bit Depth = Spd = FracPres = Bit Size = Bit TFA = I I I Bit Information Drop = Vel = Pwr/A = 474 psig 231 tps 2 hpsi I Pipe Information Pipe I Depth (ft) 1.1 32.4 38.3 50.5 55.4 64.5 75.8 78.2 83.5 114.1 145.1 176.1 178.8 360.6 393.0 1085.6 4525.0 I I I Bit Motor MWD MWD MWD MWD MWD Sub Stabilizer Collar Collar Collar Sub Drill Pipe Jar Drill Pipe Drill Pipe Annulus Information Depth (ft) 88.0 2056.0 3527.4 4220.0 4252.4 4434.2 4436.9 4467.9 4498.9 4529.6 4534.8 4537.2 4548.5 4557.6 4562.5 4574.7 4580.7 4611.9 4613.0 I I I I Hole Casing Casing Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole Open Hole System Hydraulics I SurfDrp BitDrP SysDrp ECD Btm = S/Btm I I 04 :12 :25 PM = o psig 474 psig 2289 psig 10.06 ppg 0.04 ppg = = = March 31,2005 ID (in) 18.73 12.17 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 4525.0 ft 4525.0 ft 30.0 fpm 14.5 ppg 12.250 in 1.0710 in2 OD (in) 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.15 8.00 8.00 8.00 6.70 5.00 6.25 5.00 5.00 Pipe Drill Pipe Drill Pipe Drill Pipe Heavy Weig Jar Heavy Weig X-Over SuI:) Flex Flex Flex Integral B Floal Sub Telemetry Directiona Processor Resistivit Gamma Ray Mud Motor Tricone StrnDrp AnnDrp ECD Shoe S/S MaxVel Pwr %@Bit Flow = Riser Flow = Cut Size = Cut Dens = = 213 hp 20.7 % ID (in) 3.00 5.00 1.92 1.92 1.92 1.92 1.92 3.25 2.88 2.81 2.81 2.81 2.81 3.00 2.50 3.00 4.28 OD (in) 5.00 5.00 5.00 5.00 6.25 5.00 6.70 8.00 8.00 8.00 8.15 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 1796 psig 19 psig 10.05 ppg 0.04 ppg 226 fpm Drop (psig) o 8 6 3 o 1 o o o o o o o o o o o o o 5pe~~V-5un DRIL.L.ING SeRViCeS A Halliburton Company Field: N. W. Milne Point Lease: Exploration 771 gpm 30 gpm 0.000 in 0.00 in Drop (psig) 1 2 37 76 31 57 70 1 5 32 33 33 3 141 59 537 680 Vel (fpm) 58 153 151 151 170 151 180 220 220 220 226 220 220 220 220 220 220 220 220 Model MdWt n k TauO Imp Imp/A Vel (fpm) 6596 2375 16104 16104 16104 16104 16104 5621 7157 7518 7518 7518 7518 6596 9499 6596 3247 Crit (fpm) 194 226 225 225 238 225 244 268 268 268 272 268 268 268 268 268 268 268 268 = 913 Ibs 8 psig = ECD (ppg) 9.94 10.01 10.01 10.01 10.01 10.01 10.01 10.01 10.01 10.01 10.01 10.01 10.01 10.01 10.02 10.02 10.02 10.02 10.02 = Herschel-Bulkley = 9.90 ppg = 0.862 = 0.129 Isnlhf2 = 2.82 Ihf2 Crit (fpm) 256 217 309 309 309 309 309 249 260 262 262 262 262 256 275 256 227 S/S (ppg) 0.02 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 Page 1 0(2 Sand Sandstone Clay Well Diagram Gamma api Kerr McGee KIGUN 1 BP01 NORTH MILNE ALASKA ~ I : ~~!! ~e~ . Claystone Claystone Shale Gravel Coal Limestone Tuff Phase EWR ohm-m 1K TVD ~ Lithology ï:I -j :ï 1 Shallow Phase EWR ohm-m 1000 2000 ~ "", 3000 .. 4000 . ~ 7 5000 :'1 q L, 6000 7000 8000 9000 Engineering Log ÎÕ-~) ~1)~ ~ f;1. ::- ~civv Sperry..Sun I End Well Report Kigun#l Exploration'" NW Milne Point I Directional Drilling & MWDILWD I I I I I I I I I I I I I I I I I I I 5p." ·r lv-sun CFt. L.L.. N G SSPlV. t: E 5 End of Well Report Kigun # 1 Kerr McGee RECEIVED OCT 2 0 2005 Directional Drillers A\&~\t;;¡ Oìl & Gas Cons. Commission Anchorage Mark Brouillet / Lee Martin I Kerr McGee Kiglln # 1 I Operator KelT McGee Well Kigun # 1 I Job Objectives: I Kigun # 1 Objections: Drill, Evaluate,Plug and Abandon Geological Objectives: Evaluate Schrader Bluff, Sag Rive and Ivishak Fonnations I I Summarv (If Results: I Kigun # 1 This well started out with little difficulty. The whipstock was set and window milled without problems or incident. BRA # 2 which was the first drilling BRA was picked up and ran in the hole. Orientated and passed through the window. Sliding was initiated to kickoff from the Tuvaaq State # 1 well. The BRA was doing well following the directional plan. Rap was at an average of 175 fph. Hole problems were encountered at 2,794' the hole packed off. Rotation was possible but assembly was unable to be moved up or down. A small amount of pumping was applied while rotating but circulation could not be achieved. Torque was stalling the rotary intennittently. The assembly was however able to be worked out of the troubled area. A loss of 1,200 psi called for this BHA to be pulled trom the hole. At surface it was discovered the pressure loss was due to the Stabilizer backing off at the MWD. This left the Bit, Motor and stabilizer on bottom. It needs to be noted that at no time did the rig drill with only one pump. Also the Rap was not so rapid that this assembly was screwed in the ground. Flow rates were at 700 gpm plus which is sufficient to clean the hole at the 175 fph rop. Mud weight was 9.4 ppg at the time of hole problems. Speculation by the night company man that the box split on the stabilizer causing the tools to backoff are groundless. This speculation is one mans opinion and there is nothing to justifY this as any thing more than pure speculation. Fishing operations to retrieve lost BRA components were unsuccessful. Due to low hole angle and the difficulty of a open hole sidetrack at this 12 degree inclination a cement plug was set. A new BRA was picked up and was able to be kicked off the cement plug and drill past the fish in hole. Missing the fish in hole by 23' and drilling to 3,766' which was a planned Core point Coring was done with an estimated 75% core recovery and a drilling BRA was again picked up. This BRA drilled to the 9-5/8" casing point without diffICulty. The mud weight had been raised to 9.8 ppg to improve hole stability. The 9-5/8" casing was ran without any difficulty and cemented as per program. The plug was bumped and the rigging down from csg. run and cement job was done. The rams were changed back to 5" as they had been changed to 9-5/8" for csg run. With rams changed the BOP's were tested and witnessed by the state AOGCC. The casing float equipment and cement were drilled out and a leakoff perfonned. Drilling the 8-1/2 hole section began with rotary drilling from 4,565' to 5,284' where a 16' slide was made to keep inclination below 1 degree. By 6,904' only two other slides were made both short sets and both done to keep the inclination below 1 degree. As told by the drilling engineer to just hit section 24 there is no need to keep this assembly close to the line. Slides were done simply to stay close to vertical and no dogleg of over a 1/2 degree has been put in this section. This low dogleg rate an inclination of not more than 1.5 degrees is being maintained for wireline reasons. It is not time consuming sliding as sets were not over 15-20 minutes and keeping a smooth welIbore will make E~line logging trouble free. This alone should justifY any sliding done. By 6,904' total slide time was only 51 minutes with only 59' of sliding done with a motor bend setting of .93 degrees. Total slide time for this section ended up to be 1.86 hrs. with the last 1,528' of the well drilled in rotary. I I I I I I I I Discussion: BHA Bit Motor Hole Size MDln MD Out TVDln TVD Out Incln Inc Out Azi In Azi Out Drlg Circ # # Run # (In) (ft) (ft) (ft) (ft) (deg) (deg) (deg) (deg) hrs hrs 1 ? 12.000 1900 1968 1835 1898 21.7 23.2 295 299 6 2 2 1 12.250 1968 2794 1898 2695 23.2 8.9 299 316 5 3 3 ? 8.030 2794 2794 2695 2695 8.9 8.9 316 316 0 1 4 ? 11250 2794 2794 2695 2695 8.9 8.9 316 316 0 2 5 2 2 12.250 2433 3766 2341 3669 13.4 0.5 317 196 16 7 6 3 8.500 3766 3826 3669 3729 0.5 0.6 196 216 2 2 7 4rr1 3 12.250 3826 4525 3729 4428 0.6 0.4 216 267 5 14 8 5rr1 12.250 4525 4525 4428 4428 0:4 0.4 267 267 0 2 9 6 3 8.500 4525 9098 4428 9001 0.4 2.7 267 14 37 11 Table 1 - BHA Summary I I I I I > ¡ Kerr McGee Kigttn # 1 I Motor Run # 1 2 3 3 SSDS SSDS SSDS SSDS Manufacturer Type SperryDrill SperryDrill SpenyDrill SpenyDrill Lobe OD Gauge Bend Adj DLS (Ori) ROP (Ori) ROP (Rot) (in) (in) (deg) (°'100') (ftlhr) (ft/hr) 4/5 8.000 12.000 1.15 N 3.00 182 167 4/5 8.000 11.940 Y 3.00 67 92 4/5 8.000 11.940 0.78 Y 4.00 125 137 7/8 6.750 0.93 y 53 124 Table 2 - Motor Run Summary I I Bit Manufacturer Style OD Gge Len Nozzles TFA Dull Grades Ftgè Drlg ROP # (in) (In) (/32'5) (1n2) 10D LBGO R (ft) hrs (ft/hr) ? Baker 11.750 68 6.00 11 1 Hughes GT-CM1 12.250 8.000 1x12,3x16 0.699 826 4.71 175 2 Hughes GT -CM1 12.250 8.000 1x12,3x16 0.699 1-1-WT-A -E-1-NO-CP 1333 15.88 84 3 Baker Core Bit 8.500 60 1.82 33 4rr1 Hughes MX-C1 12.250 6.100 1x14,3x20 1.071 1-1-CL-C3-F-1-SD- TD 699 5.13 136 5rr1 Hughes GT-CM1 12.250 8.000 1x12, 3x16 0.699 1-1-WT-A -E-1-NO-- TD 0 0.00 6 HUGHES HCM605Z 8.500 3.000 5x14 0.752 1-1-WT-A -X-I-NQ- TD 4573 37.38 122 Table 3 - Bit Run Summary I I I I I I I I I I I I I I I I Kerr McGee Kigun # 1 Hours by Operation Summary Hours per BHA Breakdown I """"r--- 90 Drilling 69.1 83 .. 80 Tripping r '. 59.65 I ~ 70 WirelineLogs -.---11" _-W 49.5 as - 0 60 It: PUILD BHA 47.88 ~ c 50 I 0 Circulate -- 33.68 'ii i III - III 40 Q Rig Service & Repair ... 20.34 .. 34 Co ~ 0 0 30 i 28 No Activity _ 19 :c ;.:4 I ii ~ 20 115 18 Run Casing I Cement 11IIII 19 13 0 I 1:~ 6 7 Fishing ... 18.72 D b I .... Other _···lI---~'"c.--- 56.16 1 2 3 4 5 6 7 8 9 0 100 BHA Number I Total Hours During Job II Drilling III Circulating t1a Reaming 0 Other Days vs. Depth Average Rate of Penetration per BHA I 1500 180 175.4 160 I 2000.---....... 140 136.3 2500 120 I 'C'" 100 3000 .c i! Q. 80 3500 ~ I 60 4000 40 I 4500 20 11.'3 0 ª 5000 1 2 3 4 5 6 7 8 9 .c I ã. BHA Number Q Q 5500 ~ Footage per BHA ~ 1/1 6000 I as Q :!: 5000. \ 4573 6500 4500 I 4000 7000 ª 3500 7500 l "0 3000 I ~ 'c 2500 Q 8000 III CI 2000 as Õ I 0 1500 1333 8500 LL. .... 1000 826 r 1 BOD 9000 500 :i i l I 68 ~ 60 .. o ~ ¡ 9500 1 2 3 4 5 6 7 8 9 0 2 4 6 8 10 12 14 16 BHA Number I Day iii Rotated !'!iI Oriented - - - Sperry-Sun Drilling Services MD Formation Name (ft) MD/TVD 1850- 1900 - 1950- 2000 - 2050 - 2100· 2150- 2200 - 2250 - 2300 - 2350 - 2400- 2450 - 2500 - 2550 - 2600 - 2650- 2700- 2750- 2800.. - - - o Inclinatíon - DLS- 10 15 20 25 :) I I I , ~ . /' o 2 345 - - - Bit Data 0.19 ftImin 6.00 hrs GT-CM1 1x12,3x16/32's 2.92 ftImin 4.71 hrs - Kerr McGee Kigun # 1 NAD 27-E Drilling Parameters WOB klbs RPM FLO 9pm SPP psi WOB 22 klbs RPM 86 FlO 691 gpm SPP 2323 psi - - Motor 8" SperryDrill 4/5L 1.15° BH - BHA Stabilizers 12.000 in @ 3.95 II 12.000 in @ 31.7711 8.540 in - - - - - - - N.W. Milne PI AK-MJ-0003586~ AK-MJ-0003586950 Explora1 Comments BHA ID EZSV set @ 1,948' Whipstock setting 60 RHS TOW = 1,913' BOW = 1,939' Planned flow ra!e 600 -800gpm /lMotor Rev/ Gal =.25/1 Bit wt. 35K Stab @ TOW = 1,945' Stab @ SOW = 1,972' Jars @ TOW = 2,27'2:11 Jars exit BOW= 2 332' Sensor distances = Gamma 39.16 /I EWR 46.88/1 Dir 63.03 #1 @ 1900 #2@1968 - - - - - - - - - - - - - - - - - - - Sperry-Sun Drilling Services Kerr McGee N.W. Milne PI Kigun # 1 AK-MJ-0003586~ NAD 27-E AK-MJ-0003586950 Sidetn MD Formation Name Inclination - Drilling BHA 1ft) MD/TVD DLS - Bit Data Parameters Motor Stabiljzers Comments BHAID 0 5 10 15 20 25 2000 - J // #5 @ 2433 2500 - GT-CM1 WOB 26 klbs 8" SperryDrill 11.940 in @ 3.79 It TOW = 1,913' BOW = 1,939' II Planned flow rate 600 -800 gpm 1 x12, 3x16 /32's RPM 89 4/5l 12.060 in @ 34.52 It Motor Revl Gal =.25/Bitwt. 35K Jars TOW" 2,271'/Exit BOW= 1.40ftlmin FlO 729 gpm ABH 8.540 in 2,331' Sensor distances = Gamma 40.641EWR 48.38/Dir 64.82 15.88 hrs SPP 2671 psi Cement 2,300' (Calculated) Torque bit = 28K1 Adj housing=35K 3000 - 3500 - \ Core Bit WOB 5 kJbs #6 @ 3766 4000- 0.55 ftImin RPM 90 1.82 hrs FlO 725 gpm SPP 2580 psi MX-C1 WOB 30 klbs 8" SperryDrill 11.940 in @ 3.95 It TOW = 1,913' BOW = 1,939'1/ Planned flow rate 600 - 800 gpm #7 @ 3826 4500 - 1 x14, 3x2O 132's RPM 106 4/5l 8.540 in Motor Revl Gal =.25/Sit WI. 35K Jars TOW" 2,271'/Exit BOW= \ 2.27 ftImin FlO 767 gpm 0.78° ASH 12.060 in @ 80.53 It 2,331' Sensor distances = Gamma 35.391 EWR 43.131 Dir 59.57 5.13hrs SPP 3055 psi Torque bit = 28K1 Adj housing=35K "Jar hrs.=i!3.25 5000 - HCM605Z WOB 11 klbs 7" SperryDrill 6.150 @64.021t Motor rev/gal = .33 I Torq i3itto 14-16K /I Motor and MWDtorq = IKJ @ 4525 5x14/32's RPM 110 7/8l 8.440 @ 106.72ft 30K Do not run over 25K on bit without Directional Drillers 2.04 ftImin FlO 641 gpm 0.93° ABH 8.440 @ 205.30 It Knowledge!! Jar hrs@ Start of run = 107.14 hrs. Sensor Dist: 37.38 hrs SPP 3492 psi 8.500 @1118.781t Gamma = 29.31' /I Res = 37.05'" PWD = 45.35' ASlD = 66.34'" 5500 - CAl" 76.24' /I CTN = 79.72' "DIR = 88.02' 6000 - 6500 - 7000 - 7500 - 8000 - ~ 8500 - 9000 - 9500 . \ 0 2 4 6 8 10 I I I I I I I I I I I I I I I I I I I HALU~URTO!i\.iI Sperry Drilling Services I DrillQues{ Kerr-McGee Corporation Eastings Scale: 1inch = 100ft -600 -500 I I Kerr McGee West Milne Point Kigun 0---------· 2000 - -£ 4000 a. Q) C to (,) :e Q) > 6000 ¢:: g 8000 N II .s::; (.) c: ..... Q) ~1 0000 Cf) I~.." I ,.... I " I ~~201l.00 "J>' 0,00 % I - I I I I I I I I I I I I I I I I I ;600.00 ,IOO.tMI h.700,GO ,ZOO.Of rBCO.60 ,300.08 ,40UD ~ooø.oo ~~ ~~:uo .., 1,; ~ ~ 3.[ I 2000 o Section Azimuth: 299.746° (True North) Vertical Section DrillQuest 3.03.06.006 -400 I - 350 - 250 U) C) ¢::C g:c .....t::: II 0 .s::;Z (.) .S ..... 150 å) ãš (.) Cf) Legend Kigun #1 Actual Kigun Proposed Kigun BPOl Actual Tuvaaq Actual Current Well Properties Well: Tuvaaq State #1 Horizontal Coordinates: Ref. Global Coordinates: Ref. S1ruclure : Ref. Geographical Coordinates: RKB Elevation: 6050899.00 N, 507331.00 E 0.00 N, 0.00 E 70· 33' 01.0364" N, 149· 56' 23.6181" W 40.00ft above Mean Sea Level North Reference : Units : True North Feet (US Survey) The "Directional Difficulty Index" for this profile is 4.3 ------- - - -- - - - - - - - - sper'r')J-sun Page: 1 Operator: Kerr McGee Field: NW. Milne Point Well: Kigun # 1 Exploration Location : AK-MJ-0003586950 ~lrt,by ~~lY E;rill~~~YJrWdñ~~ Rig: NAD 27-E Job # :AK-MJ-0003586950 North Ref: True Declination: 0 VS Dir: 300.320 (from Wellhead) WELLBORE SURVEY DRILLING PARAMETERS Measured Incl Azi Vertical Vertical Coordinates DLS Build Turn WOB RPM Flow Stand Orientation Tool ROP I BHA Comment Depth Angle Dir Depth Section N/S E/W Rate Rate Rate Pipe From I To Face No. (ft) (deg) (deg) (ft) (ft) (ft) (ft) ("/100') (°/100') (°/100') (klbs) (gpm) (psi) (ft) I (ft) (deg) (ftIhr) (#) 1837.51 21.93 295.18 1777 .4 386.2 170.1 -347.9 0.00 0.00 0.00 I Tieon 1913.00 21.68 295.42 1847.5 414.1 182.1 -373.3 0.35 -0.33 0.32 1 1964.10 23.26 299.04 1894.7 433.6 191.0 -390.6 4.11 3.09 7.08 1 2056.07 20.78 302.03 1980.0 468.1 208.5 -420.3 2.96 -2.70 3.25 25 75 660 2250 1968 2013 119R 209 2 2025 2055 120R 2 2144.97 18.83 305.57 2063.6 498.1 225.2 -445.4 2.57 -2.19 3.98 25 660 2250 2120 2145 LS 225 2 2243.45 17.11 310.38 2157.3 528.2 243.8 -469.3 2.31 -1.75 4.88 25 660 2250 2145 2165 LS 166 2 2213 2243 LS 2 2336.04 14.99 316.03 2246.3 553.2 261.3 -488.0 2.84 -2.29 6.10 25 700 2360 2243 2253 LS 101 2 2308 2336 LS 2 2429.99 13.43 316.57 2337.4 575.4 278.0 -504.0 1.67 -1.66 0.57 25 714 2350 2336 2355 LS 112 2 2402 2430 LS 2 2524.95 11.68 315.72 2430.0 595.2 292.9 -518.3 1.85 -1.84 -0.90 25 700 2340 2430 2437 LS 158 2 2496 2525 LS 2 2618.53 9.69 316.22 2522.0 611.9 305.3 -530.3 2.13 -2.13 0.53 25 713 2350 2525 2537 LS 275 2 2591 2619 LS 2 2712.94 9.26 316.09 2615.1 626.9 316.5 -541.1 0.46 -0.46 -0.14 25 700 2350 2619 2684 LS 380 2 2701 2713 LS 2 - - -- - -- - - - - - - - - - - -- 5pe~~V-5un Page: 1 Operator: Kerr McGee Field: NW. Milne Point Well: Kigun # 1 Sidetrack Location: AK-MJ-0003586950 ~dv~~8I erill~g=~Ydrfrdtt~ Rig: NAD 27-E Job # :AK-MJ-0003586950 North Ref: True Declination: ° VS Dir: 300.32° (from Wellhead) WELLBORE SURVEY DRILLING PARAMETERS Measured Incl Azi Vertical Vertical Coordinates DLS Build Turn WOB RPM Flow Stand Orientation Tool ROP BHA Comment Depth Angle Dir Depth Section NIS E/W Rate Rate Rate Pipe From To Face No. (ft) (deg) (deg) (ft) (ft) (ft) (ft) (°/100') (°/100') (°/100') (klbs) (gpm) (psi) (ft) (ft) (deg) (ftlhr) (#) 1837.51 21.93 295.18 1777.4 386.2 170.1 -347.9 0.00 0.00 0.00 Tieon 1913.00 21.68 295.42 1847.5 414.1 182.1 -373.3 0.35 -0.33 0.32 1 1964.10 23.26 299.04 1894.7 433.6 191.0 -390.6 4.11 3.09 7.08 1 2056.07 20.78 302.03 1980.0 468.1 208.5 -420.3 2.96 -2.70 3.25 25 75 660 2250 1968 2013 119R 209 2 2025 2055 120R 2 2144.97 18.83 305.57 2063.6 498.1 225.2 -445.4 2.57 -2.19 3.98 25 660 2250 2120 2145 LS 225 2 2243.45 17.11 310.38 2157.3 528.2 243.8 -469.3 2.31 -1.75 4.88 25 660 2250 2145 2165 LS 166 2 2213 2243 LS 2 2336.04 14.99 316.03 2246.3 553.2 261.3 -488.0 2.84 -2.29 6.10 25 700 2360 2243 2253 LS 101 2 2308 2336 LS 2 2429.99 13.43 316.57 2337.4 575.4 278.0 -504.0 1.67 -1.66 0.57 25 714 2350 2336 2355 LS 112 2 2402 2430 LS 2 1837.51 20.72 295.18 1777.4 0.0 170.1 -347.9 0.00 0.00 0.00 Tieon Sidetrack 1913.00 21.68 295.42 0.0 0.0 0.0 0.0 0.00 0.00 0.00 1964.10 23.26 299.04 0.0 0.0 0.0 0.0 0.00 0.00 0.00 2056.07 20.78 302.03 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 75 660 2250 1968 2013 119R 209 2 2025 2055 120R 2 2144.97 18.83 305.57 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 660 2250 2120 2145 LS 225 2 2243.45 17.11 310.38 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 660 2250 2145 2165 LS 166 2 2213 2243 LS 2 2336.04 14.99 316.03 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 700 2360 2243 2253 LS 101 2 2308 2336 LS 2 2429.99 13.43 316.57 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 714 2350 2336 2355 LS 112 2 2402 2430 LS 2 2433.00 13.37 316.55 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 650 2050 2430 2433 LS 7 5 2524.43 10.33 291.54 0.0 0.0 0.0 0.0 0.00 0.00 0.00 20 20 700 2425 2433 2461 150L 300 5 2461 2498 150L I 5 2498 2515[150L I 5 2618.16 8.11 279.94 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 90 700 2400 2530 2570 150L 200 5 2592 2609 LS 5 2712.41 3.92 255.67 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 720 2550 2625 2686 LS 89 5 ------------- - - - -- - sper'r''!j-sun Page: 2 Operator: Kerr McGee Field: NW. Milne Point Well: Kigun # 1 Sidetrack Location: AK-MJ-0003586950 £~by h~8I fjrilliTfg:~"drfrdtb~ Rig: NAD 27-E Job # : AK-MJ-0003586950 North Ref: True Declination : ° VS Dir: 300.32° (from Wellhead) WELLaORE SURVEY DRILLING PARAMETERS Measured Incl Azi Vertical Vertical Coordinates DLS Build Turn WOB RPM Flow Stand Orientation Tool ROP BHA Comment Depth Angle Dir Depth Section NIS I EIW Rate Rate Rate Pipe From To Face No. (ft) (deg) (deg) (ft) (ft) (ft) I (ft) e/100') (°/100') (°/100') (klbs) (gpm) (psi) (ft) (ft) (deg) (ft/hr) (#) 2686 2712 150L 5 2805.94 2.49 196.17 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 90 700 2400 2712 2781 150L 125 5 2899.80 1.58 152.92 0.0 0.0 0.0 0.0 0.00 0.00 0.00 30 740 2700 2886 2900 18m 88 5 2993.69 4.30 75.94 0.0 0.0 0.0 0.0 0.00 0.00 0.00 30 90 780 2880 2900 2956 18m 138 5 3088.24 3.02 51.07 0.0 0.0 0.0 0.0 0.00 0.00 0.00 30 720 2700 3062 3077 255m 60 5 3077 3088 255m 5 3182.17 2.02 21.33 0.0 0.0 0.0 0.0 0.00 0.00 0.00 28 90 780 2950 3088 3100 255m 135 5 3156 3177 230m 5 3275.98 0.47 21.92 0.0 0.0 0.0 0.0 0.00 0.00 0.00 30 90 730 2800 3249 3275 200m 134 5 3369.92 0.13 285.52 0.0 0.0 0.0 0.0 0.00 0.00 0.00 32 90 730 2810 101 5 3466.16 0.19 267.83 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 90 730 2810 85 5 3558.78 0.27 201.90 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 90 730 2810 101 5 3650.95 0.51 173.33 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 90 730 2810 79 5 3750.31 0.53 190.13 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 90 730 2810 67 5 3846.67 0.60 222.20 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 100 725 2800 135 7 3941.58 0.83 225.12 0.0 0.0 0.0 0.0 0.00 0.00 0.00 25 100 725 2800 136 7 4037.60 0.71 212.08 0.0 0.0 0.0 0.0 0.00 0.00 0.00 30 100 750 2950 4002 4011 45m 139 7 4130.01 0.59 198.33 0.0 0.0 0.0 0.0 0.00 0.00 0.00 30 110 750 3200 4097 4109 30m 143 7 4223.61 0.10 242.48 0.0 0.0 0.0 0.0 0.00 0.00 0.00 30 110 790 3200 4191 4204 20m 187 7 4316.16 0.01 115.06 0.0 0.0 0.0 0.0 0.00 0.00 0.00 30 110 800 3150 171 7 4410.79 0.20 256.16 0.0 0.0 0.0 0.0 0.00 0.00 0.00 35 110 800 3180 115 7 4509.98 0.35 261.69 0.0 0.0 0.0 0.0 0.00 0.00 0.00 35 110 800 3220 92 7 4606.32 0.43 291.68 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3350 192 9 4698.98 0.49 288.88 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3350 192 9 4793.54 0.73 268.06 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3350 192 9 4888.22 0.76 281.60 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3350 192 9 4982.82 0.76 264.17 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3350 192 9 5077.39 0.84 266.32 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3350 192 9 5173.14 0.88 264.79 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3350 192 9 5268.37 0.59 278.52 0.0 0.0 0.0 0.0 0.00 0.00 0.00 7 500 2180 5264 5268 85m 77 9 5362.11 0.81 281.18 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 5268 5280 85m 146 9 ----------- - - - - - - - ,- sper-r-\l-5un Page: 3 Operator: Kerr McGee Field: NW. Milne Point Well: Kigun # 1 Sidetrack Location : AK-MJ-0003586950 5t~b~~~8I Ejrill"'~~Ydrfrc~~ Rig: NAD 27-E Job # :AK-MJ-0003586950 North Ref: True Declination: 0 VS Dir: 300.320 (from Wellhead) WELLBORE SURVEY DRILLING PARAMETERS Measured Incl ! Azi Vertical Vertical Coordinates DLS Build Turn WOB RPM Flow Stand Orientation I Tool ROP BHA Comment Depth Angle Dir Depth Section NIS I EIW Rate Rate Rate Pipe From To Face No. (ft) (deg) (deg) (ft) (ft) (ft) I (ft) (°/100') (°/100') (°/100') (klbs) (gpm) (psi) (ft) (ft) (deg) (ftIhr) (#) 5457.08 0.69 287.80 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 146 9 5552.82 0.90 278.98 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 146 9 5650.13 0.94 283.99 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 146 9 5742.50 0.87 279.39 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 146 9 5838.45 0.90 285.28 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 146 9 5933.63 0.92 270.06 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 146 9 6029.19 0.89 275.14 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 146 9 6124.59 1.01 281.97 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 146 9 6219.51 1.10 278.33 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 146 9 6315.42 0.84 276.40 0.0 0.0 0.0 0.0 0.00 0.00 0.00 12 650 3350 6309 6315 100m 60 9 6410.31 0.93 300.91 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 6315 6332 100m 143 9 6506.05 1.25 310.88 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 143 9 6600.56 1.17 312.58 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 143 9 6697.39 1.15 310.55 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 143 9 6791.93 0.95 310.83 0.0 0.0 0.0 0.0 0.00 0.00 0.00 12 650 3560 6787 6792 130m 80 9 6887.33 0.80 330.84 0.0 0.0 0.0 0.0 0.00 0.00 0.00 10 110 650 3500 6792 6807 130m 143 9 6979.16 0.80 320.71 0.0 0.0 0.0 0.0 0.00 0.00 0.00 12 650 3650 6978 6979 150m 84 9 7076.80 0.65 318.11 0.0 0.0 0.0 0.0 0.00 0.00 0.00 15 110 650 3600 6979 6992 150m 161 9 7169.48 0.77 312.90 0.0 0.0 0.0 0.0 0.00 0.00 0.00 15 110 650 3600 161 9 7268.60 0.89 316.67 0.0 0.0 0.0 0.0 0.00 0.00 0.00 15 110 650 3600 161 9 7363.68 0.69 326.18 0.0 0.0 0.0 0.0 0.00 0.00 0.00 12 650 3650 7358 7364 100m 47 9 7459.11 0.74 337.40 0.0 0.0 0.0 0.0 0.00 0.00 0.00 15 110 600 3600 7364 7380 100m 137 9 7554.28 0.58 353.74 0.0 0.0 0.0 0.0 0.00 0.00 0.00 16 600 3650 7549 7554 150m 60 9 7649.62 0.50 358.27 0.0 0.0 0.0 0.0 0.00 0.00 0.00 15 110 600 3600 7554 7570 150m 138 9 7745.30 0.46 346.95 0.0 0.0 0.0 0.0 0.00 0.00 0.00 15 110 600 3600 138 9 7840.16 0.49 344.40 0.0 0.0 0.0 0.0 0.00 0.00 0.00 15 110 600 3600 138 9 7934.15 0.77 347.47 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 8027.39 0.63 348.34 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 8124.85 0.73 355.28 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 8220.06 0.77 359.71 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 8314.60 I 0.85 355.91 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 ------------- ------ sper'r'y-sun Page: 4 Operator: Kerr McGee Field: NW. Milne Point Well: Kigun # 1 Sidetrack Location: AK-MJ-0003586950 SUrt)dy~~8' E;rillfR~~Ydrfrdttñ> Rig: NAD 27-E Job # :AK-MJ-0003586950 North Ref: True Declination: ° VS Dir: 300.32° (from Wellhead) WELLBORE SU~VEY DRILLING PARAMETERS Measured Incl Azi Vertical Vertical Coordinates I DLS Build Turn WOB RPM Flow Stand Orientation Tool I ROP BHA Comment Depth Angle Dir Depth Section N/S I E/W Rate Rate Rate Pipe From To Face No. (ft) (deg) (deg) (ft) (ft) (ft) (ft) (°/100') (°/100') (°/100') (klbs) (gpm) (psi) (ft) (ft) (deg) (ftIhr) (#) 8413.00 0.29 17.47 0.0 0.0 0.0 0.0 0.00 0.00 0.00 I 9 8508.13 1.14 6.37 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 8604.24 1.15 6.45 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 8700.04 1.20 5.72 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 8795.38 1.43 14.38 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 8891.16 1.70 11.93 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 8986.37 2.15 13.32 0.0 0.0 0.0 0.0 0.00 0.00 0.00 9 I I sper'r'v-sun DRILLING SERVices I BHA Report I Operator: Kerr McGee Well: Kigun # 1 Exploration Field: N.W. Milne Point Location : AK-MJ~003586950 Rig: NAD 27-E Job # : AK-MJ-0003586950 BHA# 1 : Date In :3/9/2005 MD In (ft) : 1900 TVD In (ft) : 1835 BIT DATA I Bit # OD (in) MFR 11.750 Baker MOTOR DATA I Run # OD (in) MFR I I I COMPONENT DATA Item Description # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 I I I Bottom Trip Anchor 13-3/8" Whipstock Window Mill lower Watermelon Mill Flex Joint Upper Watermellon Mill Cross Over Sub 1x HWDP Bumper Sub Cross Over Sub MWD Gamma! Res! Dir /Pulser Float Sub 12x Drill collar Cross Over Sub 27x HWDP I I I I I I I Parameter WOB (klb5) RPM (rprn) Flow (gpm) SPP (psi) PERFORMANCE Min Max In 21.72 295.38 Out 23.15 299.15 Inclination (deg) Azimuth (deg) I I COMMENTS I EZSV set @ 1,948' Whipstock setting 60 RHS BHA# 1 Date Out 3/10/2005 MD OUt (ft): 1968 TVD Out (ft): 1898 Style Serial# Nozzles (/32'5) TFA (ina) Dull Condition Model Serial# Bend Nzl (/32'5) Avg Dif (psi) Cum .Circ Hrs I Serial OD ID Gauge Weight Top Con Length Bit - Center # (in) (in) (in) (Ibslft) (ft) Blade (ft) Baker 12.000 B 4-112" IF 3.45 1.73 Baker 11.325 28.60 11.750 3.500 336.75 B 6-518" Reg 2.45 Baker 12.250 3.500 368.87 B6-5/8"Reg 11.08 40.04 Baker 5.750 3.500 55.71 B 6-5/8' Reg 7.97 Baker 12.250 3.500 368.87 B 6-518" Reg 7.70 57.40 458681 7.325 3.500 110.83 B 4-112" IF 1.25 5.000 3.000 49.30 B 4-112" IF 29.87 6.250 3.125 78.42 B 4-1/2" IF 8.77 455314 7.750 3.750 123.13 B 6-518" Reg 2.04 SSDS 8.000 2.000 160.60 B 6-518" Reg 45.62 SSDS 8.000 3.250 143.03 B 6-5/8" H90 2.43 NABORS 8.000 2.875 149.18 B 6-518" H90 366.80 1758 7.590 3.325 124.60 B 4-1/2" IF 1.29 5.000 3.000 49.30 B 4-1/2" IF 814.49 1333.81 Ave Activity Drilling: Reaming: Circ-Other : Total: Oriented : Rotated: Total: Hrs BHA Weight 6.00 in Air (Total) 0.00 in Mud (Total) 1.50 in Air (Bel Jars) : 7.50 in Mud (Bel Jars) : (Ib) Distance (ft) 0.00 68.00 68.00 ROP (ftlhr) o o 11 Drill String OD(in) Len (ft) DP(S)-NC50(XH)-19.50# 5.000 634 o o Build (°/100') Turn (°/100') DLS (°/100') 2.10 5.55 2.99 I OBJECTIVES: I BHA # 1 13-3/8 whipstock assembly will be made up and tripped in the hole to the top of the EZSV set at 1,948' The whipstock will be orientated to 60 right of high side. The whipstock will then e set and the lug sheared. The mills will mill the window in the 13-3/8" casing and drill enough new hole for a FIT. This assembly will then be tripped out of the hole and laid down. I RESULTS: I BHA # 1 Was tripped in the hole and the whipstock set on top of the EZSV orientated at 59 right of highside. The lug was sheared and the window and new hole were completed by the milling assembly. Two weighted sweeps were pumped one halfway through the window milling process and the other upon conclusion of drilling new hole to 1,968' A FIT was performed with the EMW = 14.5ppg. The assembly was then tripped out and mills laid down. The mills were full gauge. TOW = 1,913' 1/ BOW = 1,939' 1/ Milled depth = 1 ,968' I I I I I I I I I I I I I I I I I I I I O.D. 12" I 11.325" 11.75" 12.25" 5.75" 12.25" 7.325" 5" 6.25" 7.75" 8" S" 8" I I I I 7.59" 5" splilr.. Iv-sun C.Á I L..L.I N G SSFlVJ c: eas BHA Schematic Length 3.45' 28.6' 2.45' 11.08' 7.97' 7.7' 1.25' 29.87' 8.77' 2.04' 45.6Z 2.43' 366.8' 1.29' 814.49' Kerr McGee Kigun # 1 BHA 10#: 1 13-3/8 Whipstock BHA Configuration Description Bottom Trip Anchor 13-3/8" Whipstock Window Mill Lower Watermelon Mill Flex Joint Upper Watermellon Mill Cross Over Sub 1 x HWDP Bumper Sub Cross Over Sub MWD Gamma/ Res! Dir /Pulser Float Sub 12>< Drill collar Cross Over Sub 27x HWDP BHA Discussion EZSV set @ 1,948' Whipstock setting 60 RHS I I I I I I I I I fJ Box 4-1/2" IF I · o 27x HWDP ~ .... .. Box 4-1/2" IF Cross Over Sub Box 6-518" H90 12>< Drill collar Box 6-518" H90 Float Sub Box 6-5/8" Reg Box 4-112" IF Bumper Sub Box 4-1/2" IF 1 x HWDP Box 4-112" IF Cross Over Sub Box 6-5/8" Reg Upper Watermellon Mill Box 6-518" Reg Flex Joint __ Box 6-5/8" Reg ~ *~ - Lower Watermelon Mill lì:...Ð ~~3Õ~~i~eg MWD Gammal Res/ Dir IPulser Cross Over Sub ..... Box 6-5/8" Reg 13-3/8" Whipstock Box 4-1/2" IF Bottom Trip Anchor I I I spa,-.r-v-sun DRILLING SERVICES BHA Report Operator: Kerr McGee Well: Kigun # 1 Exploration Field: N. W. Milne Point Location: AK-MJ-0003586950 Rig: NAD 27-E Job ##: AK-MJ-0003586950 BHA# 2 I BHA# 2 : Date In :311012005 MD In (ft) : 1968 TVD In (ft) : 1898 Date out 3/11!2005 MD Out (ft): 2794 TVD Out (ft): 2695 BIT DATA I Bit # OD (in) MFR Style Serial# Nozzles (132's) TFA (in") Dull Condition 1 12.250 Hughes GT-CM1 5069201 1x12,3x16 0.699 MOTOR DATA I Run # OD (in) MFR Model Serial# Bend N2I (132's) Avg Dif (psi) Cum Circ Hrs I 1 8.000 SSDS SperryDrill 800214 1.15· 154 7.28 COMPONENT DATA Item Description Serial OD ID Gauge Weight Top Con Length Bit - Center # # (in) (in) (in) (Ibs/ft) (ft) Blade (ft) 1 121/4" Hughes GT-CM1 5069201 12.250 3.000 12.250 377.57 P 6-5/8- Reg 0.99 2 8" SperryDrilt Lobe 4/5 - 5.3 stg 800214 8.000 5.000 12.000 104.39 B 6-5/8" H90 28.73 3.95 3 Integral Blade Stabilizer HDS 77010 8.150 2.880 12.000 155.59 B 6-5/8- H90 5.96 31.77 4 MWD/GAMlRES/DIRlPUlSER SSDS 8.000 1.920 8.540 161.44 B 6-5/8" Reg 43.42 5 Non-Mag Float Sub 4150 8.000 3.250 143.03 B 6-5/8" H90 2.43 6 Non-Mag Flex Drill Coltar SSDS 718 8.000 2.810 150.17 B 6-5/8" H90 30.62 7 Non-Mag Flex Dnll Collar 192420 8.000 2.810 150.17 B 6-5/8" H90 31.02 8 Non-Mag Flex Drill Collar 192418 8.000 2.810 150.17 B 6-518" H90 30.98 9 Cross Over Sub 3707 6.700 2.810 99.02 B 4-1/2" IF 2.72 10 6 X HWDP NAD 5.000 3.000 49.30 B 4-112" IF 181.81 11 Daily Hyd. Jars 16220044 6.250 2.500 87.83 B 4-112" IF 32.39 12 23 X HWDP NAD-27 5.000 3.000 49.30 B 4-112" IF 692.65 1083.72 I I I I I I I I I I I I I Parameter WOB (klbs) RPM (rpm) Flow (gpm) SPP (psi) Ave 22 86 691 2323 Activity Drilling : Reaming: Circ-Other : Total: Min Max 15 25 60 90 575 750 1750 2650 PERFORMANCE In 23.15 299.15 Out 8.89 315.97 Inclination (deg) Azimuth (deg) Oriented: Rotated: Total.: Hrs 4.71 0.00 2.57 7.28 BHA Weight in Air (Total) in Mud (Total) in Air (Bel Jars) : in Mud (Bel Jars) : (Ib) 71791 61286 34799 29707 Drill string OD(in) Len (ft) DP(S)-NC5O(XH)-19.5O# 5.000 1710 Distance (ft) 449.00 377.00 826.00 ROP (ftlhr) 182 167 175 Build e/100') Turn (°1100') DLS (°/101)') 3.00 -1.73 2.04 1.80 I I COMMENTS I TOW = 1,913' BOW::: 1,939' Planned flow rate 600 -800 gpm IIMotor Rev/ Gal =.25/1 Bit wt. 35K Stab @ TOW = 1,945' Stab @ BOW = 1,972: Jars @ TOW = 2,272'// Jars exit BOW= 2,332: ~ðn~nr r!iC!+a.n,...~ ~ ~~mll"Y't~ "':tQ .. A " t:\A/O A':;; RR II njr ~~ n~ I I I I I I I I I I I I I I I I I I I "I: " sper--r--v-sun C PI I L.L.I N G S E! PI V I c: E! 5 Operator: Kerr McGee Well: Kigun # 1 Exploration Field: N. W. Milne Point Location : AK-MJ-0003586950 Rig: NAD 27-E Job #: AK-MJ-0003586950 BHA# 2 BHA Report page 2 OBJECTIVES: BHA # 2 This BHA objective will be to initiate drilling actual on the Kígun # 1 well. It will be made up and tripped in orientated to 60 RHS prior to reaching this TOW @ 1,913' Once the bit has cleared the whipstock slide pumps will again be brought on and the assembly will be used to drop the wellbore to vertical at a planned 2.5 degree dogleg rate. Once vertical this assembly continues to drill hole until it reaches the core point. This point will be picked by the geologist but well prognosis puts depth at 3,600'. Once at core point the hole will be circulated clean. The assembly will be short tripped into window and back to bottom. The hole will once again be circulated clean and the assembly will then be tripped to suñace and laid down. RESULTS: BHA # 2 Picked up BHA # 2, Orient, tool face off set = 736f798 X 360= 332.03 Plug into MWD and down load and up load tool, Finished picking up the rest of BHA, RIH with 2 stands of Hwt. then picked up jars and 2 joints of Hwt, RIH with the rest of Hwt from derrick. Flow rates are 660 gpms I 2050 psi, RPMs = 75, WOB = 25K Drilling ahead with reduced ROP, because of low volume in the pits and not able to get oil base mud out to the rig, (Phase 3 conditions) Avg. ROP is 173' FPH and have been asked to decrease rop further. Discussed situation with Co. Man and have determined that we have plenty of mud to make it to the core point. Mud supply can be replenished during tripping as weather forecast says wind dying down later today. ROP is now being increased. Rig went to one pump to repair leaky suction line on second pump. Circulation rate With one pump at 475 gpm and was circulating and reciprocating good. Unclear about psi loss as what caused it but # 1 pump had to be taken off hole momentarily and when put back on hole and started pumping when hole packed off. Bled pump psi off and was able to rotate, could not move drillstring up or down and could not pump. Inched assembly up while rotating and attempted to bñng pump on slowly. Managed to work stand up 5 feet. This was enough to rack stand back in derrick. A single was then picked up and attempts to clear peckoff continued. Cleared packed off area and once again able to pump at full rates. Problem now is there is a 1,000 psi pressure which after testing suñace equipment is obviously downhole. Tripped out at suñace with MWD, on bottom sits Bit, Motor and String Stabilizer. I I I I I I O.D. 12.25" a" 8.15" 8" 8" 8" 8" 8" I I I I I I I I I I I I I 6.7" 5" 6.25" 5" ~r-~~·I~v..~n !:.2FfI....1,..1 N 13 SIEiiiAVI r:: IE S BHA Schematic length 0.99' 28.73' 5.96' 43.42' 2.43' 30.62' 31.02' 30.98' 2.72' 181.81' 32.39' 692_65' Kerr McGee Kigun # 1 BHA 10#: 2 12-1/4 Kickoff Assembly BHA Configuration Description 12114" Hughes GT-CM1 8" Sperry Drill Lobe 415 - 5.3 stg Integral Blade Stabilizer MWD/GAM/RES/DIR/PULSER Non-Mag Float Sub Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Cross Over Sub 6 X HWDP Daily Hyd. Jars 23 X HWDP BHA Discussion TOW = 1,913' BOW = 1,939' Planned flow rate 600 -800 gpmllMotor Revl Gal =.25 II Bit wt. 35K Stab @ TOW = 1,945' Stab @ BOW = 1,972' Jars @ TOW = 2,272'11 Jars exit BOW= 2,332' Sensor distances = Gamma 39.16 II EWR 46.88 II Dir 63.03 o Box 4-1/2" IF (] 23XHWDP Box 4-1/2" IF Daily Hyd. Jars Box 4-1/2" IF 6 X HWDP Box 4-112" IF Cross Over Sub Box 6-5/8" H90 Non-Mag Flex Drill Collar Box 6-5/8" H90 Non-Mag Flex Drill Collar Box 6-5/8" H90 Non-Mag Flex Drill Collar Box 6-5/8" H90 Non-Mag Float Sub Box 6-5/8" Reg MWD/GAMlRES/DIR/PU LSER Box 6-5/8" H90 Integral Blade Stabilizer Box 6-5/8" H90 8" SperryDril1 Lobe 4/5 - 5.3 stg Pin 6-5/8" Reg 121/4" Hughes GT-CM1 I I I I I I I I I I I I I I I I I I I SpSr'r'v-sun DRILLING SEAVICES BHA Report Operator : Kerr McGee Well: Kigun # 1 Exploration Field: N. W. Milne Point Location: AK-MJ-0003586950 Rig: NAD 27-E Job #: AK-MJ-0003586950 BHA# 3 BHA# 3 : Date In :3/11!2005 MD In (ft) : 2794 TVD In (ft) : 2695 Date Out 3/12/2005 MD Out (ft): 2794 TVD Out (ft): 2695 BIT DATA I Bit # OD (in) MFR MOTOR DATA I Run # OD (in) MFR COMPONENT DATA Item Description # 1 2 3 4 5 Cross Over Sub Integral Blade Stabilizer 6 X HWDP Daily Hyd. Jars 23 X HWDP Parameter WOB (klbs) RPM (rpm) Flow (gpm) SPP (psi) PERFORMANCE Min Max In 8.89 315.97 Out 8.89 315.97 Inclination (deg) Azimuth (deg) COMMENTS Style Model Serial# Serial# Nozzles (/32'5) TFA (in") Dull Condition Bend Nzl (/32'5) Avg Dif (psi) Cum Circ Hrs I Serial OD ID Gauge Weight Top Con Length Bit - Center # (in) (in) (in) (Ibs/ft) (ft) Blade (ft) AAD 8.030 3.000 148.50 B 4-112"IF 1.05 192464- 6.760 2.810 8.250 101.18 B 4-112" IF 5.63 3.71 NAD 5.000 3.000 49.30 B 4-112" IF 181.81 16220044 6.250 2.500 87.83 B 4-112" IF 32.39 NAD-27 5.000 3.000 49.30 B 4-112" IF 692.65 913.53 Ave Activity Drilling: Reaming: Circ.other : Total: Oriented : Rotated : Total: Hrs 0.00 1.22 0.20 1.42 BHA Weight in Air (Total) in Mud (Total) in Air (Bel Jars) : in Mud (Bel Jars) : Distance (ft) ROP (ftlhr) (Ib) 46681 39851 9689 8271 Drill String OD(in) Len (ft) DP(S)-NC5O(XH)-19.50# 5.000 1880 Build e/100') Turn (°/100') DLS (°/100') I I I I I I I I I I I I I I I I I I I SpSr'r'v-sun c fit I L-L-I N 13 5 e PI V Ice 5 Operator: Kerr McGee Well: Kigun # 1 Exploration Field: N.W. Milne Point Location: AK-MJ-0003586950 Rig: NAD 27-E Job #: AK-MJ-0003586950 BHA# 3 BHA Report page 2 OBJECTIVES: BHA # 3 This BHA will be attempt a longshot by running in hole and making a miracle stab into fish and torquing up to box connection on Stabilizer. The stabilizer is the top piece of the fish in hole. This is being done while waiting on Baker Fishing hand and fishing tools. RESULTS: BHA # 3 Attempt was unsuccessful. Assembly tripped out and tools laid down. I ., I I I I O.D. 8.03" 6.76" I 5" 6.25" 5" I I I I I I I I I I I I I Slpt=tr "·V-sun ,I:IAIL..L..ING .SÊiRVÜ:SS BHA Schematic Kerr McGee Kigun # 1 BHA 10#: 3 Longshot Fishing BHA BHA Configuration Length 1.05' 5.63' 181.81' 32.39' 692.65' Description Cross Over Sub Integral Blade Stabilizer 6 X HWDP Daily Hyd. Jars 23 X HWDP o r;:J Q ~. ... Box 4-1/2" IF t::J 23 X HWDP Box 4-112" IF Daily Hyd. Jars Box 4-112" IF 6 X HWDP Box 4-1/2" IF Integral Blade Stabilizer Box 4-1/2" IF Cross Over Sub BHA# 4 : Date In :3/1212005 MD In (ft) : 2794 TVD In (ft) : 2695 Date Out 3/1312005 MD Out (ft): 2794 TVD Out (ft): 2695 BIT DATA I Bit # OD (in) I I I I I I spe"r-y-sun DRILLING SeRViCeS BHA Report MFR Style MOTOR DATA I Run # OD (in) MFR Model Operator: Kerr McGee Well: Kigun # 1 Exploration Field: N. W. Milne Point Location : AK-MJ-0003586950 Rig: NAD 27-E Job # : AK-MJ-0003586950 BHA# 4 Serial# Nozzles (l32's) TFA (in2) Dull Condition Señal# Bend Nzl (132's) Avg Dif (psi) Cum Circ Hrs I COMPONENT DATA Item Description Serial OD ID Gauge Weight Top Con Length Bit. Center # # (in) (in) (in) (Ibs/ft) (ft) Blade (ft) 1 11-1/4" X10-5/8 Overshot guide 4510044 11.250 11.250 305.97 BOS 0.80 2 10-5/8 Overshot W 8/18 grapple 455320 11.625 3.500 10.625 328.93 B 6-5/8" Reg 3.11 3 Bumper Sub 1430 7.750 3.560 126.84 B 6-5/8" Reg 9.10 4 Bowen Hyd Fishing jar 16955 7.750 3.060 135.70 B6-5I8"Reg 12.10 5 Cross Over Sub 458666 7.825 3.000 139.80 B6-5I8"H90 1.49 6 3x Drill collar NAD27E 8.000 2.810 150.00 B6-5I8"H90 92.75 7 Crossover sub 458657 7.940 3.000 144.66 B 6-518" Reg 1.82 8 Jar Intensifier 7.750 3.060 135.70 B6-5I8"Reg 13.39 9 Cross Over Sub 458657 7.810 3.500 130.48 B 4-1/2" IF 1.48 10 Circulating Sub 4510057 6.125 3.250 72.14 B 4-112" IF 2.02 11 27x HWDP 5.000 3.000 49.30 B 4-1/2" IF 814.49 952.55 I I I I I I I I I I I I I Ave Activity Drilling: Reaming: Circ-Qther : Total: Parameter WOB (klbs) RPM (rpm) flow (gpm) SPP (psi) PERFORMANCE Min Max Out 8.89 315.97 In 8.89 315.97 Oriented : Rotated : Total: Inclination (deg) Azimuth (deg) COMMENTS Baker Fishing BHA Hrs 0.00 0.50 1.25 1.75 BHA Weight in Air (Total) in Mud (Total) in Air (Bel Jars) : in Mud (Bel Jars) : OD(in) Len (ft) (Ib) 60758 51868 18448 15749 Drill String Distance(ft) ROP (ftlhr) Build (°/100') Turn (°/100') DLS (°/100") I , ' I BHA Report page 2 Operator; Kerr McGee Well : Kigun # 1 Exploration Field: N.W. Milne Point Location : AK-MJ-0003586950 Rig: NAD 27-E Job # : AK-MJ-0003586950 BHA# 4 sper-r-y-sun DRILLING SEAVICES I I OBJECTIVES: I BHA # 4 OBJECTIVE: Make up Baker fishing assembly trip in hole and attempt to retrieve stabilizer, motor and bit left in hole from BHA # 2. I RESULTS: I BHA # 4 Results Crew coming on tour held a PJSM with Baker Rep. on P/U fIShing assembly. Brought up fIShing tools to rig floor. M/U fishing tools and picked up three of Nabors steel 8" DCs RIH to 2647' wash down to 2734' above fish, CBU to clean hole before going over fish with overshot. Was able to get on fish. Attempt to jar free did not work. Went to back off overshot with right hand rotation could not back off. Continued jarring while waiting on shot for backoff. Rig was able to obtain circulation. Do not think fluid is circulating through motor just overshot. R/U Schlumberger and run string shot in and was able to back-off and RID same, CBU, POOH I I I I I I I I I I I I I I I I I 0.0. 11.25" 11.625" 7.75" 7.75" 7.825" I 8" I I I I 7.94" 7.7'3' 7.81" 6.12'3' 5" Length 0.8' 3.11' 9.1' 12.1' 1.49' 92.75' 1.82' 13.39' 1.48' 2.02' 814.49' Baker Fishing BHA I I I I I I I I I &pï=r'i' lv-sun CRI 1-'-1 N G SEi_FlVI C_Ei IS BHA Schematic Kerr McGee Kigun # 1 BHAID#:4 Baker fishing BHA BHA Configuration Description 11-1/4" X10-5/8 Overshot guide 10-5/8 Overshot W 8118 grapple Bumper Sub Bowen Hyd Fishing jar Cross Over Sub 3 x 3x Drill collar Crossover sub Jar Intensifier Cross Over Sub Circulating Sub 27 x 27x HWDP BHA Discussion Box 4-1/2" IF 'C:7 I:::) 27 x 27x HWDP 'C:7 Box 4-1/2" IF Circulating Sub Box 4-1/2" IF Cross Over Sub Box 6-518" Reg Jar Intensifier Box 6-518" Reg Crossover sub Box ô-5IB" H90 3 x 3x Drill collar Box 6-5/8" H90 Cross Over Sub Box 6-518" Reg Bowen Hyd Fishing jar Box 6-518" Reg Bumper Sub Box ô-5IB" Reg 10-5/8 OvershotW 8/18 grapple BOS 11-1/4" X10-5/8 Overshot guide I I I ·Operator : Kerr McGee Well : Kigun # 1 Sidetrack Field : N. W. Milne Point Location: AK-MJ-0003586950 Rig: NAD 27-E Job # : AK-MJ...0003586950 sper'r'V-5un DRILLING SeRViCeS BHA Report BHA# 5 I I I BHA# 5 : Date In :3/1312005 MD In (n) : 2433 TVD In (n) : 2341 Date Out 3/1512005 MD Out (n): 3766 TVD Out (n): 3669 BIT DATA I Bit # OD (in) 2 12.250 MOTOR DATA I Run # OD (in) 2 8.000 TFA (inz) Dull Condition 0.699 1-1-WT-A -E-1-NO-CP MFR Hughes Style GT-CM1 Serial# 5069203 Nozzles (132'5) 1x12,3x16 NzI (132'5) Avg Oif (psi) Cum Circ Hrs I 172 22.64 Model SperryDrill Serial# 800297 Bend MFR SSDS COMPONENT DATA Item Description # 1 2 3 4 5 6 7 8 9 10 11 12 Serial # 5OS9203 800297 423 SSDS 4150 192420 SSDS 718 192418 3707 NAD 16220044 NAD-27 OD (in) 12.250 8.000 8.000 8.000 8.000 8~000 8.000 8.000 6.700 5.000 6.250 5.000 ID (in) 3.000 5.000 2.880 1.920 3,250 2.810 2.810 2.810 2.810 3.000 2.500 3.000 Top Con Length Bit - Center (n) Blade (ft) 0.99 31.20 3.79 5.25 34.52 43.42 2.43 31.02 30.62 30.98 2.72 181.81 32.39 692.65 Gauge (in) 12.250 1.1.940 12.060 8.540 Weight (Ibsln) 377.57 104.39 149.10 161.44 143.03 150.17 150.17 150.17 99.02 49.30 87.83 49.30 I 12114" Hughes GT-CM1 8" SperryDril/ Lobe 415 - 5.3 stg Integral Blade Stabilizer MWD/GAMlRES/DlRlPULSER Non-Mag Float Sub Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Cross OVer Sub 6 X HWDP Daily Hyc:!. Jars 23 X HWDP P 6-5/8" Reg B6-5I8"H90 B 6-5/8" H90 B 6-5/8" Reg B 6-5/8" H90 B 6-518" H90 B 6-5/8" H90 B 6-5/8" H90 B 4-1/2" IF B 4-112" IF B 4-1/2" IF B 4-1/2" IF I I I I I I I I 1085.48 Ave 26 89 729 2671 Activity Drilling : Reaming: Circ-Other : Total: Hrs 15.88 0.88 5.88 22.64 BHA Weight in Air (Total) in Mud (Total) in Air (Bel Jars) : in Mud (Bel Jars) : Min 10 20 650 2050 Max 35 90 780 2950 (Ib) 71904 61383 34912 29804 Drill String OD(in) Len (ft) DP(S)-NC5O(XH)-19.5O# 5.000 2681 Parameter WOB (klbs) RPM (rpm) Flow (gpm) SPP (psi) PERFORMANCE I I In Out Distance (n) ROP (nthr) Build CO/100') Turn (°/100') DLS (0/10Þ') Inclination (deg) 13.37 0.53 Oriented : 450.00 67 3.00 Azimuth (deg) 316.55 195.76 Rotated : 883.00 92 Total: 1333.00 84 -0.96 0.00 1.02 COMMENTS TOW = 1,913' BOW = 1,939' /I Planned flow rate 600 -800 gpm Motor Revl Gal = .25 IBit wt. 35K Jars TOW = 2,271 'IExit BOW= 2,331' Sensor distances = Gamma 4O.64/EWR 48.38/Dir 64.82 Cement 2,300' (Calculated) Torque bit = 28K/ Adj housing=35K I I I I I I I I I I I I I I I I I I I I I sper'r'v-sun CAI 1..1..1 N G SEAVI c: E S Operator: Kerr McGee Well: Kigun # 1 Sidetrack Field: N.W. Milne Point Location : AK-MJ-0003586950 Rig: NAD 27-E Job # : AK-MJ-0003586950 BHA# 5 BHA Report page 2 OBJECTIVES: BHA # 5 Objectives for BHA will be to sidetrack off cement plug. Drill past Bit, Motor and stabilizer left in hole. Drill to core point. Then pull BHA for coring assembly. RESULTS: PJSM pick up BHA # 5 Sidetrack Assembly. BHA was made up all connections torqued to specs. Checked connections for correct torque on 8" drill collars ran from derrick. Tripped in HWDP and jars from derrick. Tripped in 5" drillpipe to 1,900' filled pipe, pulse tested MWD. Did madd pass from 1,950' to 2,010' without pump. Passed through window without orientating pipe had no difficulty. Tag soft Cement @ 2309' Reamed down to 2433' cement was hard, Orientated to 150 L let assembly sit 20 minutes to create good ledge. Then began time drilling off cement plug at approximately 5' minutes ~ foot. Time drilled unto contact with hard fonnation at 2,498' Increased penetration rate. Stair stepped penetration rate up and once samples showed small percentage of cement rotated at 20 rpm for 15'. Stopped and took a checkshot to confirm assembly was actually sidetracked. Surveys show sidetrack as successful and cuttings sample showed no cement at sample taken at 2,500' Samples with depth intervals listed below: @ 2450' 80% Cmt. 20 % sand @ 2460' 80% Cmt. 40 % sand @2470' 3O%Cmt 20% sand 5O%Shale @2480' 4O%Cmt 20% sand 40 % Shale @ 2490' 10 % Cmt 30 % SH 60 % Sand @ 2500' 30 % SH 50 % sand 20 % ST @2510'3O% SH 30 % SST 40 % Sand Continued Sliding to bring assembly to vertical with inclination dropping down to 2.49 degrees what was to be a final set to hit vertical was completed and connection made. The survey gave a surprising increase in inclination to 4.28 degrees although this survey did show 57' of slide. It is possible that the assembly hooked up and kicked out a large dogleg but more probable over steering assembly by Day Directional Driller (ME) However previous slides had not yielded this rate. Slide to correct inclination was done. Short trip and trip out of hole both showed tight spot @ 3,716'. This spot took 50K wt. on trip back in hole. Made up to top drive and reamed area good. On final trip out area still pulled 20K overpun. Worked area and tripped out with bit at surface bit was graded a 1-1-WT-A-E-1-NO-CP Bit was broke off and MWD was then downloaded and laid down. Broke stabilizer off motor and laid down motor and stab. I I I I I O.D. 12.25" I a" a" a" a" a" I a" 8" 6.7" 5" I 6.25" 5" I ""'~-·I IV-!lU~ :C1AI L..L..I N G SEiiRVI C.5 BHA Schematic Length 0.99' 31.2' 5.25' 43.42' 2.43' 31.02' 30.62' 30.913' 2.72' 181.81' 32.39' 692.65' Kerr McGee Kigun # 1 BHA 10#: 5 12-1/4 Sidetrack BHA Configuration Description 121/4" Hughes GT-CM1 8" SperryDrill Lobe 4/5 - 5.3 stg Integral Blade Stabilizer MWD/GAMlRES/DIR/PULSER Non-Mag Float Sub Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Cross Over Sub 6 X HWDP Daily Hyd. Jars 23 X HWDP BHA Discussion TOW = 1,913' BOW = 1,939' II Planned flow rate 600 -800 gpm Motor RevI Gal =.25 IBit wt. 35K Jars TOW = 2,271'/Exit BOW= 2,331' Sensor distances = Gamma 4O.64IEWR 48.38/Dir 64.82 Cement 2,300' (Calculated) Torque bit = 28K/ Ad; housing=35K I I I I I I I I I I H o Box 4-112" IF IJ 23 X HWDP Box 4-112" IF Daily Hyd. Jars Box 4-112" IF o .XHWDP Box 4-112" IF Cross Over Sub Box 6-518" H90 Non-Mag Flex Drill Collar ~ Box 6-518" H90 Non-Mag Flex Drill Collar Box 6-518" H90 Non-Mag Flex Drill Collar Box 6-518" H90 Non-Mag Float Sub Box 6-518" Reg MWD/GAMlRES/DIR/PU LSER Box 6-518" H90 Integral Blade Stabilizer Box 6-518" H90 8" SperryDrill Lobe 4/5 - 5.3 stg Pin 6-518" Reg 121/4" Hughes GT-CM1 I I I I I I I I I I I I I I I I I I I SpSr'r'y-sun CAILLING seRVices BHA# 6 : Date In :3/1512005 MD In (ft) : 3766 TVD In (ft) : 3669 Date Out 3/1612005 MD Out (ft): 3826 TVD Out (ft): 3729 BIT DATA I Bit # OD (in) 3 8.500 MOTOR DATA I Run # OD (in) BHA Report MFR Baker MFR COMPONENT DATA Item Description # 1 2 3 4 5 6 7 8 9 10 11 12 13 Core Bit SRH Hydrolift EXT Sub Integral Blade stabilizer Outer Tube Integral Blade Stabilizer Outer Tube Integral Blade Stabilizer Top Sub Float Sub ex HWDP Daily Hyd. Jars 23x HWDP Parameter Min Max Ave WOB (klbs) 5 5 5 RPM (rpm) 90 90 90 Flow (gpm) 725 725 725 SPP (psi) 2580 2580 2580 PERFORMANCE I Inclination (deg) Azimuth (deg) In 0.53 195.16 Out 0.51 216.13 COMMENTS Style Core Bit Model 16220044 Activity Hrs Drilling: 1.82 Reaming: 0.00 Circ.othèr : 1.50 Total: 3.32 Oriented : Rotated : Total: Operator: Kerr McGee Well: Kigun # 1 Sidetrack Field: N.W. Milne Point Location : AK-MJ-0003586950 Rig: NAD 27-E Job #: AK-MJ-0003586950 BHA# 6 Serial# Nozzles (l32°s) TFA (in") Dull Condition Serial# Nzl (132°s) Avg Dif (psi) Cum Circ Hrs I Bend Serial # OD ID Gauge Weight Top Con Length Bit - Center (in) (in) (in) (Ibs/ft) (ft) Blade (ft) 8.500 4.000 150.56 MOD V 1.30 7.000 5.325 55.26 HT-3O 0.77 6.750 5.325 46.06 HT-30 1.90 8.460 5.325 115.67 HT-30 4.00 5.97 6.750 5.325 46.06 HT-30 26.00 8.460 5.325 115.67 HT-30 4.00 35.97 6.750 5.325 46.06 HT-30 26.00 8.460 5.325 115.67 HT-30 4.00 65.97 6.750 3.200 94.55 HT-30 2.30 6.750 2.625 103.51 B 4-112" IF 2.17 5.000 3.000 49.30 B 4-112" IF 181.81 6.250 2500 87.83 B 4-112" IF 32.39 5.000 3.000 49.30 B 4-112" IF 692.65 979.29 BHA Weight (Ib) in Air (Total) 50506 in Mud (Total) in Air (Bel Jars): 13514 in Mud (Bel Jars) : Dnll String OD(in) Len (ft) DP(S}-NC50(XH)-19.5O# 5.000 2847 Distance (ft) 0.00 60.00 60.00 ROP (ftlhr) o 33 33 Build (°/100') Tum (°/100°) DLS (°/100") 0.00 0.07 0.00 0.33 I I I BHA Report page 2 Operator: Kerr McGee Well : Kigun # 1 Sidetrack Field: N.W. Milne Point Location: AK-MJ-0003586950 Rig: NAD 27-E Job #: AK-MJ-0003586950 BHA# 6 5pe~raV-5un CAIL.L.ING SERVICES I OBJECTIVES: I BHA # 6 Objective for BHA is to obtain a 50' core sample for evaluation by Geology department. I RESULTS: I Rig held safety meeting and picked up Core barrel assembly with Core hands. Coñng assembly was tripped in to 3,76f1 where the hole was circulated prior to coring operations began. Coring was done with 1.83 hrs. on core bit. Cored to a depth of 3,826' Coring assembly was tripped out of the hole at a preset pulling speed. Allowing for gas to decompress on its way to surface. Stopped twice and held for one hour each time to allow decompression. At surface 45+ feet of core recovered. Coring assembly was laid down without incident. I I I I I I I I I I I I I ; ". I I I I O.D. 8.5" T' I 6.75" 8.46" 6.75" 8.46" I 6.75" 8.46" 6.75" 6.75" I 5" 6.25" 5" I I I I I I I I I I I spar Ii lv-sun CAf~.:L..1 1\1 G SEFlVIC-S$ BHA Schematic Length 1.3' 0.77' 1.9' 4' 26' 4' 26' 4' 2.3' 2.1T 181.81 ' 32.39' 692.65' Kerr McGee Kigun # 1 BHA 10 #: 6 Coring Assembly BHA Configuration Description Core Bit SRH Hydrolift EXT Sub Integral Blade Stabilizer Outer Tube Integral Blade Stabilizer Outer Tube Integral Blade Stabilizer Top Sub Float Sub 6)(6)( HWDP Daily Hyd. Jars 23)( 23)( HWDP Q Box 4-1/2" IF t::7 ~ 23 )( 23)( HWDP t:::7 Box 4-1/2" IF Daily Hyd. Jars Box 4-1/2" IF 6)(6)( HWDP ... Box 4-1/2" IF Float Sub ;,-:': " ïJ == - R HT-30 Top Sub ÍIIIOÌI HT-30 Integral Blade Stabilizer HT-30 Outer Tube HT-30 Integral Blade Stabilizer -= HT-30 Outer Tube ....,. HT-30 a Integral Blade Stabilizer HT-30 Hydrolift EXT Sub HT-30 SRH rV10D V Core Bit I I I I I I . , sper''-'V-5un DRILLING SERVICES BHA# 7 : Date In :3/1612005 MD In (ft) : 3826 TVD In (11) : 3729 Date Out 3/17/2005 MD Out (ft): 4525 TVD Out (ft): 4428 BIT DATA I Bit # OD (In) 4rr1 12.250 MOTOR DATA I Run # CD (In) 3 8.000 I I I I I I I I I I I I I BHA Report MFR HUghes MFR SSDS COMPONENT DATA Item Description # 1 2 3 4 5 6 7 8 9 10 11 12 Hughes MX-C1 Milltooth 8" SperryDrill Lobe 4/5 - 5.3 stg WJD/GAMJRES/DIR/PULSER Non-Mag Float Sub Integral Blade Stabilizer Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Cross Over Sub 6 X HWDP Daily Hyct Jars 23 X HWDP Parameter WOB (ldbs) RPM (rpm) Flow (gpm) SPP (psi) Mln 25 100 725 2800 Ave 30 106 767 3055 Style MX-C1 Model SperryDrill Señal # 6031689 800297 SSOS 4150 423 192420 SSOS 718 192418 3707 NAO 16220044 NAD-27 Activity Drßllng : Reaming: Clrc-Other : Total: Operator: Kerr McGee Well: Kigun # 1 Sidetrack Field: N. W. Milne Point Location : AK-MJ-0003586950 Rig: NAD 27-E Job # : AK-MJ-0003586950 BHA# 7 Max 35 110 800 3220 PERFORMANCE Serial# 6031689 Nozzles (132'S) 1x14,3x20 TFA (Ina) Dull Condition 1.071 1-1-CL-C3-F-1-SD~TD Serial# Nzl (132's) Avg Dlf (psi) Cum Circ Hrs 1 243 41.37 800297 Bend 0.78° 00 ID Gauge Weight Top Con Length Bit - Center (in) (in) (In) (Ibslft) (ft) Blade (ft) 12.250 3.630 12.250 366.39 P 6-518" Reg 1.15 8.000 5.000 11.940 104.39 B 6-5/8" H90 31.20 3.95 8.000 1.920 8.540 161.44 B 6-518" Reg 43.42 8.000 3.250 143.03 B 6-5/8" H90 2.43 8.000 2.880 12.060 149.10 B 6-518" H90 5.25 80.53 8.000 2.810 150.17 B 6-518" H90 31.02 8.000 2.810 150.17 B 6-51ff' H90 30.62 8.000 2.810 150.17 B 6-5/8" H90 30,98 6.700 2.810 99.02 B 4-112" IF 2.72 5.000 3.000 49.30 B 4-112" IF 181.81 6.250 2.500 87.83 B 4-112" IF 32.39 5.000 3.000 49.30 B 4-112" IF 692.65 1085.64 Hrs 5.13 5.74 7.86 18.73 Drill string OD(in) Len (ft) DP(S)-NC50(XH)-19.5Q# 5.000 3439 BHA Weight in Air (Total) in Mud (Total) in Air (Bel Jars) : in Mud (Bel Jars) : (Ib) 71952 61204 34960 29738 In Out Distance (ft) ROP (ftIhr) Build fO/100') Turn (°/100') DLS (0/10G') Inclination (deg) 0.57 0.38 Oriented : 34.00 125 4.00 Azimuth (deg) 216.13 267.11 Rotated : 665.00 137 Total: 699.00 136 -0.03 0.00 0.06 COMMENTS I TOW = 1,913' BOW = 1,939' II Planned flow rate 600 - 800 gpm Motor Revl Gal =.25/Bit wt. 35K Jars TOW = 2,271'/Exit BOW= 2,331' Sensor distances = Gamma 35.391 EWR 43.13 I Dir 59.57 Torque bit = 28K/ Adj housing=35K II Jar hrs.= 93.25 I I I I I I I I I I I I I I I I I I I . . 1'-'1 ,ertrt\l-5Un CRI L-L-I N ti SEAVI C E S Operator: Kerr McGee Well: Kigun # 1 Sidetrack Field: N.W. Milne Point Location: AK-MJ-0003586950 Rig: NAD 27-E Job # : AK-MJ~0003586950 BHA# 7 BHA Report page 2 OBJECTIVES: BHA # 7 Objectives for BHA are to wash and ream 8-1/Z' hole size from coring operation out to 12-1/4" Drill to 9-5/8" casing point. Keeping assembly as close to vertical as possible. RESULTS: Held PJSM on picking up BHA # 7 with rig crew. Picked up BHA # 7 to the top of the Stabilizer. (Bit,motor,MWD,FIt sub, Stab) Did rig floor offset 810/673 X360 = 299.11 and loaded MWD data. Picked up remaining BHA and tripped into hole to 2,705' where assembly took wt. Reamed area and continued in assembly took wt again at 3,438'. Reamed and washed to 3,76f1 without problems. 3,766' is depth coring started assembly was used to ream hole from 8-112" out to 12-1/4" logging coring area at 150 fph or Jess. At 3,826' end of core depth drilling actual started with ROP controlled at 200 fph or less for good logging quality. Assembly drilled to casing point at 4,525' sliding was done to keep inclination from increasing to 1 degree. Three slides were made for a total of 34' slide time was .27 inclination did not reach 1 degree and 665' was rotated. With largest dogleg for BHA being a .55 degree. 5.15 total drilling hrs. for this BHA run. Short trip to window and stacked out on ledge at 2,7Œ1 This spot was seen before on coring run. Log shows sand directly above 2,7Œ1 thoughts are sand has washed out leaving a ledge at the base of the sand which is a mudstone. Assembly passes through without a bobble on weight indicator if pumping or rotating but takes full weight of string if running in on elevators. Seems as if bit catches edge of ledge and digs in. Worked this ledge for 4 hrs. without good results. Plan is to wireJine as it is very possible it may pass through area without problem. If unable to get E-line logs down a hole opener and stabilizers will be ran on 8" steel drill collars making a stiffer assembly. Will pulverize the ledge and make a smooth path for logging tools and upcoming casing. Tripped out and laid down BHA # 7 found bit to have # 3 cone locked up Bit was Graded 1-1 -CL-C3-F-1~SD-TD I I I I I I O.D. 12.25" 8" 8" 8" 8" 8" 8" 8" I I I I I I 6.7" 5" 6.25" 5" =f.I~ìr ~V-5Un E:::U=UL.L..ING SEiAVICEi!ii$ BHA Schematic Length US' 31.2' 43.42' 2.43' 5.25' 31.02' 30.62' 30.98' 2.72' 181.81' 32.39' 692.65' Kerr McGee Kigun # 1 BHA 10#: 7 12-1/4 Vertical Assembly BHA Configuration Description Hughes MX-C 1 Milltooth 8" SperryDrill Lobe 415 - 5.3 stg MWD/GAM/RES/DIR/PULSER Non-Mag Float Sub Integral Blade Stabilizer Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Non-Mag Flex Drill Collar Cross Over Sub 6 X HWDP Daily Hyd. Jars 23 X HWDP BHA Discussion TOW = 1.913' BOW = 1,939' 1/ Planned flow rate 600 - 800 gpm Motor Revl Gal =.25 IBit wt. 35K Jars TOW = 2,271'/Exit BOW= 2,331' Sensor distances = Gamma 35.39 I EWR 43,13 I Dir 59.57 Torque bit = 281</ Ad; housing=35K II Jar hrs.= 93.25 I I I I I I I 1\ [J Box 4-1/2" IF o 23XHWDP Box 4-1/2" IF Daily Hyd. Jars Box 4-1/2" IF 6 X HWDP Box 4-1/2" IF Cross Over Sub Box 6-518" H90 ( NoncMag Flex Drill Collar Box 6-518" H90 Non-Mag Flex Drill Collar Box 6-5/8" H90 Non-Mag Flex Drill Collar Box 6-5/8" H90 Integral Blade Stabilizer Box 6-518" H90 Non-Mag Float Sub Box 6-518" Reg MWD/GAMlRES/DIR/PU LSER Box 6-5/8" H90 8" Sperry Drill Lobe 4/5 - 5.3 stg Pin 6-5/8" Reg Hughes MX-C1 Milltooth I I I I I I 5pE!r'r'y-sun DRILLING SERVICES BHA Report MFR Hughes MFR I I I I I I I I I I I I I COMPONENT DATA Item Description # 1 2 3 4 5 6 7 8 9 10 11 121/4" Hughes GT-CM1 Bit Sub 1 x Orin collar Integral Blade Stabilizer 3x Drill collar Integral Blade Stabilizer 2x Drill collar Cross Over Sub 12x HWDP Daily Hyd. Jars 17xHWDP Parameter WOB (klbs) RPM (rpm) Flow (gpm) SPP (psi) PERFORMANCE Min Max In 0.36 267.11 Out 0.36 267.11 Inclination (deg) Azimuth (deg) COMMENTS Put float valve in bit sub Torque bit to 28K H-90 Connections torque to 56K TOW @ 1,913' 1/ BOW @ 1,936' Dit'" ') Dð.n,.." H 1 Style GT-CM1 Model Operator: Kerr McGee Well: Kigun # 1 Sidetrack Field: N.W. Milne Point Location: AK-MJ-0003586950 Rig: NAD 27-E Job #: AK-MJ-0003586950 Serial# 5069203 Serial# Nozzles (132'5) 1x12,3x16 Bend BHA# 8 TFA (iß2) Dull Condition 0.699 1-1-WT-A -E-1-NO-TD Nzl (132'5) Avg Dif (psi) Cum Circ Hrs I Serial aD ID Gauge Weight Top Con Length Bit· Center # (in) (in) (in) (Ibslft) (ft) Blade (ft) 5069203 12.250 3.000 12.250 377.57 P 6-5/8- Reg 0.99 2979 8.000 2.810 150.17 B6-5/8"H90 2.74 NAD27E 8.000 2.810 150.00 B 6-5/8- H90 30.79 423 8.000 2.880 12.060 149.10 B6--5/8"H90 5.25 36.85 NAD27E 8.000 2.810 150.00 B 6-5/8" H90 93.36 0420 8.000 2.810 12.000 150.17 B 6--5/8" H90 5.68 134.55 NAD27E 8.000 2.810 150.00 B6-5/8"H90 60.80 3707 6.700 2.810 99.02 B 4-112" IF 2.72 5.000 3.000 49.30 B 4-112" IF 363.62 16220044 6.250 2.500 87.83 B 4-112" IF 32.39 5.000 3.000 49.30 B 4-112" IF 510.84 1109.18 Ave Activity Drilling : Reaming : Circ-Other : Total: BHA# 8 : Date In :3/1912005 MD In (ft) : 4525 TVD In (ft) : 4428 Date Out 3/2012005 MD Out (ft): 4525 TVD Out (ft): 4428 BIT DATA I Bit # aD (in) 5rr1 12.250 MOTOR DATA I Run # aD (in) Oriented : Rotated : Total: Hrs O~OO 0.00 2.25 2.25 BHA Weight in Air (Total) in Mud (Total) in Air (Bel Jars) : in Mud (Bel Jars) : Distance(ft) ROP (ftlhr) (Ib) 76388 68434 48359 37024 Drill String aD (in) Len (ft) DP(S)-NC50(XH)-19.5O# 5.000 3416 Build (°/1001 Turn (°/1001 DLS (°/100') 0.00 I I c:;rter--r-Y-5un Oft I L-L-I N Qi SERVICES I BHA Report paQ~? I OBJECTIVES: I Operator: Kerr McGee Well : Kigun # 1 Sidetrack Field: N.W. Milne Point location: AK-MJ-0003586950 Rig: NAD 27-E Job #: AK-MJ-0003586950 BHA# 8 BHA # 8 Simple Objective run in and wipe hole. Once on bottom circulate hole clean trip out BHA and lay down same. BHA # 8 Simple Objective run in and wipe hole. Once on bottom circulate hole clean trip out BHA and lay down same. Rig held PJSM and picked up a cleanout BHA. This BHA will not include Motor or any smart iron. Bit, Bit sub, 8" Drillcollar, Stab,3 X 8" drillcollars, Stab and two more 8n drillcollars plus HWDP and jars. Using a previously run Hughes 12-114 GT -1 bit that was graded a 1-1 on this run. This Bha will be tripped in to bottom where it will be used to circulate the hole clean. BHA was tripped to bottom without problems. There was a slight bobble on the wt. indicator when the assembly passed 2, 70s. This is the area where the ledge was discovered on previous trips. The e-Jine logs showed this to caliper over 24" just above 2, 70s'. Making it obvious this area did in fact wash out. Sand shows from MWD Jogs just above the 2,7OS depth. The sand apparenUy washed out leaving a ledge of mudstone to deal with. 4 hrs. had been spent working this area with previous BHA and it was obviously worth the time as no problems were encountered at this depth during any of the logging runs and only a slight bobble showing on the weight indicator on this wiper trip. The 9-518" casing should have no problem making it to bottom!! With wiper BHA on bottom the hole was circulated clean. A dry job was pumped and the assembly tripped to suñace. The jars were laid down as they would be swapped out for another set on the 8-112 drilling BHA. The remaining BHA was laid down with the bit graded the same as when it went in 1-1-WT-A-E-1-NO-TD I RESULTS: I I I I I I I I I I I I I I I I I I I O.D. 12.25" 8" 8" 8" 8" 8" 8" 6.7" I 5" I I I I I I I I I I I I 6.25" 5" _pì:d .¡ "v-sun CFfIL-L.INDi SESRVICE!¡ii BHA Schematic Length 0.99' 2.74' 30.79' 5.25' 93.36' 5.68' 60.8' 2.72' 363.62' 32.39' 510.84' Kerr McGee Kigun # 1 BHA ID#: 8 Wiper trip BHA Configuration Description 121/4" Hughes GT-CM1 Bit Sub 1 x Drill collar Integral Blade Stabilizer 3 x 3x Drill collar Integral Blade Stabilizer 2 x 2>< Drill collar Cross Over Sub 12 x 12>< HWDP Daily Hyd. Jars 17 x 17x HWDP BHA Discussion Put float vatve in bit sub Torque bit to 28K H-90 Connections torque to 56K TOW @ 1,913' 1/ BOW @ 1,936' Bit #2 Rerun # 1 Box 4-1/2" IF b ~ 17 x 17x HWDP þ Box 4-1/2" IF Daily Hyd. Jars Box 4-1/2" IF 12 x 12>< HWDP Box 4-1/2" IF Cross Over Sub Q L1 ß L1 l "/\ ~ ~ A Box 6-5/8" H90 2 x 2>< Drill collar === Box 6-5/8" H90 Integral Blade Stabilizer ~ Box 6-5/8" H90 3 x 3x Drill collar ~ Box 6-5/8" H90 Integral Blade Stabilizer Box 6-518" H90 1 x Drill collar Box 6-5/8" H90 Bit Sub Pin 6-5/8" Reg 121/4!' Hughes GT-CM1 I I I I I I Operator: Kerr McGee Welt: Kigun # 1 Sidetrack Field: N.W. Milne Point Location: AK-MJ-0003586950 Rig: NAD 27-E Job #: AK-MJ-0003586950 SpSr'r'}/-sun DRILLING SERVICES BHA# 9 : Date In :3/21/2005 MD In (ft) : 4525 TVD In (ft) : 4428 Date CU[ 3/25!2005 MD Cur (ft): 9098 TVD Cur (ft): 9001 BIT DATA I Bit # OD (in) 6 8.500 MOTOR DATA I Run # OD (in) 3 6.750 BHA Report MFR HUGHES MFR SSDS I I I I I I I I I I I I I COMPONENT DATA Item Descñption # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Hughes HCM 605Z PDC 7" SperryDrilllobe 7/8 - 6.0 stg DGR-EWR-PWD AlD-CTN-ACAL Directional Probe Pulser Non-Mag Float Sub Integral Blade Stabilizer 1 x Non-Mag Flex Drill Collar 1 x Non-Mag Flex Drill Collar 1 x Non-Mag Flex Drill Collar Integral Blade Stabilizer 15x HWDP Drilling Jar 14x HWDP Ghost Reamer Parameter Min WOB (klbs) 5 RPM (rpm) 60 Flow (gpm) 500 SPP (psi) 2180 PERFORMANCE I Max 16 110 650 3650 Ave 11 110 641 3492 Style HCM605Z Model SperryDrill Serial # 7106613 700091 72210HWRG6 72365N1 L 16 20680 72521K6 3282 HDS 62009 DSC998 172598 10574613 HDS62011 16220006 263127 Activity Drilling : Reaming: Circ-Other : Total: Hrs 37.38 0.00 10.92 48.30 Serial# 7106613 OD (in) 8.500 6.750 6.750 6.750 6.650 6.700 6.500 6.500 6.600 6.590 6.700 6.500 5.000 6.220 5.000 6.500 Nozzles (132'S) 5x14 Señal# 700091 ID (in) 3.000 4.753 1.920 1.920 1.920 1.920 2.810 2.810 2.810 2.880 2.880 2.810 3.000 2.250 3.000 2.750 Gauge (in) 8.500 8.150 8.440 8.440 8.500 BHA Weight in Air (Total) in Mud (Total) in Air (Bel Jars) : in Mud (Bel Jars) : In Out Distance (ft) ROP (ftlhr) Inclination (deg) 0.36 2.68 Oñented : 116.00 53 Azimuth (deg) 267.11 14.35 Rotated : 4457.00 124 Total: 4573.00 122 COMMENTS Motor rev/gal = .33/ Torq Bit to 14-16KII Motor and MWD torq = 30K Do not run over 25K on bit without Directional Drillers Knowledge!! Jar hrs@ Start of run = 107.14 hrs. Sensor Dist: Gamma = 29.31' II Res = 37.05' II PWD :: 45.35' A~I n = ¡:;¡:; <lA' /I r:AI = 7¡:; ?A' II r:T"1 = 7Q 7?' /I nth' = RR n?' Bend 0.930 (Ib) 67066 56128 42856 35867 BHA# 9 TFA (ir¡2) Dull Condition 0.752 1-1-WT-A -)(..-NO-TD Nzl (132'5) Avg Dif (psi) Cum Circ Hrs I 193 48.30 Weight (Ibs/ft) 169.30 61.48 112.09 112.09 108.50 110.29 91.95 91.95 95.46 94.04 97.95 91.95 49.30 90.00 49.30 92.85 Top Con P 4-1/2" Reg B 4-112" IF B 4-112" IF B 4-112" IF B 4-1/2" IF B 4-112" IF B 4-112" IF B 4-1/2" IF B 4-112" IF B 4-1/2" IF B 4-1/2" IF B 4-1/2" IF B 4-112" IF B 4-1/2" IF B 4-1/2" IF B 4-112" IF Length Bit - Center (ft) Blade (ft) 0.96 25.06 27.55 30.12 8.66 10.91 1.96 5.81 106.72 30.91 31.00 31.06 5.60 205.30 454.53 32.35 419.93 6.41 1118.78 1122.82 Drill Stñng OD(in) Len (ft) DP(S)-NC5O(XH}-19.5O# 5.000 7975 Build rf100'} Turn (°/100') DLS (°/100') 0.05 0.00 0.06 I I I I I I I I I I I I I I I I I I I sper-rtv-sun CAI L.L.I N G SEAVI C E S Operator: Kerr McGee Well: Kigun # 1 Sidetrack Field: N.W. Milne Point Location : AK-MJ-0003586950 Rig: NAD 27-E Job #: AK-MJ-0003586950 BHA# 9 BHA Report page 2 OBJECTIVES: BHA # 9 This BHA will be used to drill the 8-1/2 hole section of the Kigun # 1 well to T.D. One of the objectives for the BHA will be to make it to T.D. without tripping for Bit or BHA The MWD package includes Gamma! Resistivety/PWD/ALD/CTN IACAL and a directional probe. These MWD tools will log the well as it is drilled to enable the customer to further evaluate this lease. The assembly will be kept close to vertical and drill to a projected T.D. of 9,295' RESULTS: BHA # 9 Res.ults PJSM pick up BHA # 9 Picked up BHA components bit, motor, mwd tools to directional probe. Did rig floor offset 454/672 X 360 = 243.21. MWD pUlser was then made up and attempted to load data. Data could not be loaded until pumping through tools to warm up internal components. the data was loaded after the tool had been warmed up by circulating drilling fluid through. A PJSM was then held and the nuke sources were installed. the remaining BHA components were then made up in there order with aU tools torqued to specs. The assembly was tripped in to 2,347 where rig stopped and serviced top drive. Ran in hole to 4,416' and circulated bottoms up. Rigged up and did a casing test at 2,500 psi for 30 minutes. The cement and float equipment was drilled out with an additional2r1 of new hole drilled. Circulated bottoms up and performed a LO.T. which reached an EMW of over 21 ppg. Another 2(J of new hole was drilled for a second LOT. This test was done again after circulating bottoms up to verify the first data as correct. With the LO.T. done a slow pump rate was taken with each mud pump then drilling commenced in rotary mode from 4,545' to 4,697 at this point a PWD baseline was taken for ECD's. Baseline taken at 80 RPM 650 GPM ECD = 11.071/100 RPM 650 GPM ECD = 11.09" 100 RPM 600 GPM ECD = 10.95//80 RPM 600 GPM ECD = 10.93 Drilled to 5,264' without any slide corrections. At 5,246' derrick hand explained the need to change out liner in mudpump. With inclination at .88 a slide was made to drop inclination. Slide was done using one pump at 74 fph rate of penetration. This allowed more time for derrick hand to complete work on pump without drilling ahead at 200 fph and loading the hole up with cuttings. The pump problem made it an ideal time to slide! Rotated from 5,246' to 6309' a total of 1,02!if before another slide was made. This slide from 6,309 to 6,33Z was to move the assembly back to less than a 1 degree inclinaflOf1. At 6,690' a 4 stand short trip was made with the assembly pulling slick Co. Man said run it back to bottom and return to drilling after only 4 stands pulled. Mud wt. has been increased to 10.6 heavy for drilling HRZ and Kingak formations. SWeeps have been pumped at 500' intervals and cuttings increase is around 25% at the shakers. ECD is 11.4 with the 10.6+ mud wt. While drilling shock hose failed in utility hallway. Pump psi was immediately lost as fluid was being expelled inside of the rig. Pumps were shut down in less than one minute. At 650 gpm flow rate it didn't take more than a minute to completely mess up hallway with oilbase mud. Some mud did escape this hallway and get outside. All of the mud that exited the rig was caught in containment except two gallons. The rig immediately tripped back into the shoe. This trip showed no hole problems. The hose was replaced and the assembly tripped back to bottom also without problems and driHing resumed. The rig did incur nine hours of down time. , Drilling ahead when second shock hose on mudline had O-ring go out. This is the second hose to fail the oil base mud is extremely hot and thoughts are that the oil base mud properties combined with the heat of the mud are eating the rubber 0 rings. Drilled in rotary to ·T.D. @ 9,098' Shublik and Ivishak formations drilled slow as expected. Bit wt. did not exceed 20K to conserve bit life through section. 9,098' measured depth equals 9,000' TVD which is total depth as requested by Geology. No short trip will be performed as well is to be plugged and abandoned. Circulate two times bottom up and trip out of hole. Once at HWDP all BHA will be laid down. Ria Pipeshed: The pipeshed does not have enough heat to warm up MWD tools etc. This problem has appeared in two previous end of well reports. It has been discussed several times in the past and still the problem is unsolved. Picking up the MWD tools for the 8-112 hole section communication problems arose when loading data. The tools were circulated through for 20 minutes to warm them up. Communication when loading data to tools was then not a problem. This caused for an additional hour in picking up BHA which makes the rig and the service company look bad. I strongly urge something be done to correct the lack of heat problem in this pipeshed once and for alii! I I I I I O.D. 8.5" 6.75" 6.75" 6.75" 6.65" .6.T' 6.5" 6.5" 6.6" 6.59" 6.T' 6.5" S" 6.22" I I I I 5" 6.S" I _~t:=I .¡ lv-sun g.~IL.L.INra SEitAVIr:::SS BHA Schematic Length 0.96' 25.06' 27.55' 30.12' 8.66' 10.91' 1.96' 5.81' 30.91' 31' 31.06' 5.6' 454.53' 32.35' 419.93' 6.41' Kerr McGee Kigun # 1 BHA 10 #: 9 8-1/2 Vertical BHA Configuration Description Hughes HCM 605Z PDC 7" SperryOrill Lobe 7/8 - 6.0 stg DGR-EWR-PWD ALD-CTN-ACAL Directional Probe Pulser Non-Mag Float Sub Integral Blade Stabilizer 1 x Non-Mag Flex Drill Collar 1 x Non-Mag Flex Drill Collar 1x Non-Mag Flex Drill Collar Integral Blade Stabilizer 1Sx 1Sx HWDP Drilling Jar 14x 14x HWOP Ghost Reamer BHA Discussion Motor rev/gal = .33 I Torq Bit to 14-16K II Motor and MWO torq =30K Do not run over 2SK on bit without Directional Drillers Knowledgel! Jar hrs @ Start of run = 107.14 hrs. Sensor Ois!: Gamma = 29.31' II Res = 37.05' II PWO = 45.3S' ASLÐ = 66.34' II CAL = 76.24' II CTN = 79.72' II OIR = 88.02' I I I I I I I I I ~ ~ ~ (J Box 4-1/2" IF Ghost Reamer ...... Box 4-1/2" IF 14x 14x HWDP Box 4-1/2" IF Drilling Jar Box 4-112" IF 1S)( 1Sx HWOP Box 4-112" IF Integral Blade Stabilizer Box 4-1/2" IF 1x Non..Mag Flex Drill Collar Box 4-1/2" IF 1 x Non-Mag Flex Drill Collar Box 4-1/2" IF 1 x Non-Mag Flex Drill Collar Box 4-112" IF Integral Blade Stabilizer Box 4-1/2" IF Non-Mag Float Sub Box 4-1/2" IF Pulser Box 4-112" IF Directional Probe Box 4-1/2" IF ALD-CTN-ACAL Box 4-1/2" IF DGR-EWR-PWD Box 4-112" IF 7" Sperry Drill Lobe 7/8 - 6.0 stg Pin 4-1/2" Reg Hughes HCM 605Z PDC I I sq:::J....Jr.. .v-sun gA.I.........I-ilu5 . SIiIAVICEiS From Bit (ft) Component 1 3.95 Sleeve Stab/Pad Yes 2 7.85 Bent Housing Yes 3 8.38 Housing Tool Used Yes 4 29.72 Stator Elastomer 5 Bent Sub I 2nd Bent Hsg No 6 31.77 Lower String Stab Yes 7 Upper String Stab No I Motor Serial # : 800214 Directional Driller(s) : Mark Brouillet, Lee Martin Location : AK-MJ-0003586950 Well : Kigun # 1 Depth In/Out: 1968 I 2794 ft lication Details : I I ~_._J I """"Top Pad Bend (Housing) I !-T".. " I I I I I I Additional Features Flex Collar : No Short Brg Pack : No Brg Cfg (OO/On) Lobe Cfg : 4/5 Rtr Noz I Size /32's BHA ODlID : 8.150 12.880 in Sleeve Tool Job# : Operator : Rig : Bit Run # : Date In/Out : AK-MJ-0003586950 Kerr McGee NAD 27-E 1 BHA# : 2 3/10/2005 I 3/11/2005 Motor Run #: 1 Hole Size: 12.250 In 12.000 12.000 Pick Up Sub Bit Box Protr Arr Ret Yes Yes Yes Yes Type Stab: 3 1 O· Non-Adjustable: 1.15· bend Pad 8.250 in Th Stab: 3 1180· I Max Dogleg While Rotating Max Dogleg Overpulled In Max Dogleg Pushed Through Hole AzImuth Start I End Interval Oriented I Rot. Jarring Occured : No Diff Press (psi) "/100' "/100' I "/100' 299.15" 1315.97· 449/ 377 ft I Str RPM 86 90 Rotn Torque (ft-Ibs) 4000 5000 Avg: Max: 154 200 I I Motor Tested Pre.Run Dump Sub Operating NIA Flow 1 gpm Flow 2 gpm Drlveshaft Rotation Observed Bearing Leakage Observed No I I I I I I I Force Force Motor Stalled: No Float Valve: No DP Filter: No 23.15"/8.89· 3.00 I "/100' Ibf Ibf Inc Start I End Directional Perf Ori I Rot Drag Up/Dn (Ibf) ! ! WOB (klbs) 22 25 ROP Oriented 182 380 Motor Tested Post-Run Dump Sub Operating NIA Flow 1 : gpm Flow 2 : gpm Driveshaft Rotation Observed Bearing Leakage Observed Driveshaft Rotated to Drain Mud No Prey JoblWell Hrs Drilling Hrs Clrc Hrs Reaming Hrs Total Hrs This Run New Cumulative Hrs (ft1f1r) ROP Rotated 167 353 0.00 4.71 2.57 0.00 7.28 7.28 (ft/hr) Brg Play Pressure 1 Pressure 2 mm psi psi I . . ti:Dp~ U¡·'v-sun ÇlA/L...../NIS SEAVII:EiiS TOR PERFORMANCE R I Motor Serial # : 800297 Directional Driller(s) : Mark Brouillet, Lee Martin Location : AK-MJ-0003586950 Well : Kigun # 1 Depth In/Out: 2433 I 3766 ft Applk;ation Detaits : I I I ~ Lwr stab or Pad Sub - Job # : Operator : Rig : Bit Run # : Date In/Out : AK-MJ-0003586950 Kerr McGee NAD 27-E 2 BHA# : 5 3/13/2005 I 3/15/2005 Motor Run #: 2 Hole Size: 12.250 in From Bit (ft) Component 1 3.79 Sleeve Stab/Pad Yes Stab: 4 I 0° 2 10.12 Bent Housing Yes Adjustable: ° bend 3 10.66 Housing Tool Used Yes Pad 8.280 in Th 4 32.19 Stator Elastomer 5 Bent Sub I 2nd Bent Hsg No 6 34.52 Lower String Stab Yes Stab: 4 I 0° 7 Upper String Stab No I _Top Pad Bend (HousIng) I t ;" · .. , I I I I I Additional Features Flex Collar : No Brg Ctg (Off/On) SleÐY8Tool Short Brg Pack : No Lobe Cfg : 4/5 Rtr Noz / Size /32's BHA ODßD : 8.000 1 2.880 in 12.060 12.060 Pick Up Sub Bit Box Protr Arr Ret Yes Yes Yes Yes I "'ll}' e]: : IJ~ II.!.' Î Max Dogleg While Rotating Max Dogleg Overpulled In Max Dogleg Pushed Through Hole Azimuth start / End Interval Oriented I Rot. Jarring Occured : No DIff Press (psi) 172 300 I °/100' °/100' °/100' 316.55° 1195.76° 4501 883 ft I Str RPM 89 90 Rotn Torque (ft-Ibs) 4625 5000 Avg: Max: I I Motor Tuted Pre-Run Dump Sub Operating N/A Flow 1 gpm Flow 2 gpm Driveshaft Rotation Observed Bearing Leakage Observed with: Brg Play Pressure 1 Pressure 2 No No I I I I I :~ eJ: ~Ú~,ItA'~~i~.~,~~ Problem Perceived No Performance Motor Yes I I RPM Force Force Ibf Ibf Motor Stalled: No Float Valve: No DP Filter: No 13.37° I 0.53° 3.00 1 °/100' Ine Start I End Directional Perf Orl I Rot Drag UplDn (Ib/) 1 I ROP Oriented 67 170 WOB (klbs) 26 35 mm psi psi Prev JoblWell Hrs Drilling Hrs Cire Hrs Reaming Hrs Total Hrs This Run New Cumulative Hrs (ft/hr) ROP Rotated 92 300 0.00 15.88 5.88 0.88 22.64 22.64 (ftIhr) I -r'- I"· ·V-sun r:;".U.......ING S&FfVICœS OTOR PERFORMANCE I Motor Serial # : 800297 Directional Driller,s): Mark Brouillet Location : AK-MJ-0003586950 Well : Kigun # 1 Depth In/Out: 3826 I 4525 ft Application Details : Job# : Operator : Rig : Bit Run # : Date In/Out : AK-MJ-0003586950 Kerr McGee NAO 27-E 4rr1 BHA # 7 3/16/2005 I 3/1712005 Motor Run #: 3 Hole Size: 12.250 in I I "","",Tool 1 T" .. " I I I I I I I From Bit (ft) Component 1 3.95 Sleeve StablPad Yes Slab: 4 I 0' 2 10.28 Bent Housing Yes Adjustable: 0.78' bend 3 10.82 Housing Tool Used Yes Pad 8.280 in Th 4 32.35 Stator Elastomer 5 Bent Sub I 2nd Bent Hsg No 6 80.53 Lower String Stab Yes Slab: 4 I O' 7 Upper String Stab No 12.060 12.060 I ~ LV«' Stab or Pad SUb - I Bend (Housing) I Additional Features Flex Collar : No Brg efg (OO/On) Short Brg Pack : No Lobe Cfg : 4/5 Rtr Noz I Size /32's BHA ODIID : 8.000 11.920 in Pick Up Sub Bit Box Protr An Ret Yes Yes Yes Yes I Max Dogleg While Rotating Max Dogleg Overpulled In Max Dogleg Pushed Through Hole Azimuth Start I End Interval Oriented I Rot. Jarring Occured : No Dirt Press (psi) '/100' '/100' 216.13'/267.11' 34/665 ft Ibf Ine Start I End Directional Perf Ori I Rot Force Force Ibf Motor Stalled : Prev JoblWell Hrs Float Valve: No Drilling Hrs DP Filter: No Cire Hrs 0.57" 1 0.36' Reaming Hrs 4.00/ '/100' Total Hrs This Run New Cumulative Hrs WOB (klbs) ROP Oriented (f/lhr) ROP Rotated (ft/hr) 30 125 137 35 144 187 I I Avg: Max: 243 300 Str RPM 106 110 Rotn Torque (ft-Ibs) 4500 4500 Drag Up/Dn (Ibf) I / I I Motor Tested Pre-Run Dump Sub Operating NIA Flow 1 gpm Flow 2 gpm Drlveshaft Rotation Observed Bearing Leakage Observed No I I I I I I Problem Perceived Performance Motor No Yes No I I ~>..]~:t:l~'.I~[ctI;;~'~'I".' No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) I I I I I I I I I I I I I I I I I I sper".....v-5un· CRIL..L..ING SERVICES JAR PERFORMANCE REPORT Jar Serial # : Directional Driller(s): Mark Brouillet, Lee Martin Location: AK-MJ-0003586950 Well: Kigun # 1 Job # : AK-MJ-0003586950 Operator : Kerr McGee Rig: NAD 27-E Well Type : Vertical Date In/Out : 3/9/2005 I 3/10/2005 Inc In/Out: 21.72° I 23.15° .~':.I:.I.["~'.[.]~. .]=*'~'I". Depth InlOut : 1900 I 1968 ft Hours Below Rotary: 12.67 , , ,'.' -" -,--" -- ;.', -c::.-.'-__-..>,:<: ':--'- /','- :-, -:'<'>'-""--'>'\',;,\ ,--;-~" ->-,,-, '" ,,--,-' '" '-" - - - .-'- , ,.i"'~"{II:tI'jl:tn..]=*'~'I". BHA Elements Below Jar Ream, Other, Bit, Ream, Flex, Ream, Sub, 1x HWDP BHA Elements Above Jar [Jar], Sub, MWD, Sub, 12x DC, Sub, 27x HWDP Typical Drag Up- Typical Drag Down Ibf Ibf Wt. Indicator Reading to Jar Up Wt. Indicator Reading to Jar Down Ibf Ibf ,. ">< Problem Perceived : No :::\'\<,~':<~Y;};';.).--~ ::,í:':-'0 ,>(:~-:_- ;'_::;, - -.--~ - - -, '- -" ---,'" '-'- :-",:-. -:':: , i:t:~¡(·J:~I'I'~mll::aIl.]¡'j";jl:t~.~. ..' j Please fax copy of this report to DTDG, Aberdeen: (44) 1224 727324. I I Jar Serial #: 16220044 Directional Driller(s): Mark Brouillet, Lee Martin Location: AK-MJ-0003586950 Well: Kigun # 1 Job # : AK-MJ-0003586950 Operator : Kerr McGee Rig : NAD 27-E Well Type : Vertical I I Date In/Out : 3/10/2001:1 3/11/2005 Inc In/Out : 23.15° I 8.89° I '~';';'.[If~'.[.)~.']::¡'~~I". I Depth In/Out: 1968 I 2794 ft Mud Wt : Avg Flow Rate: Pressure Drop Below Jar: 9.4 ppg 691 gpm psi Hours Below Rotary: 15.92 I ,.~,,~~tI:I¡'I:m~ I BHA Elements Below Jar Bit, PDM, Stab, MWD, Sub, Flex, Flex, Flex, Sub, HWDP BHA Elements Above Jar [Jar], HWDP I Typical Drag Up Typical Drag Down Ibf Ibf I :"-',,~,,-<;~-;-,'^./,-;;;; ;/,., -: --~:_.' < ' 'i :"-_ ,:--.- -,_, :f _.~- 'J' - -, '_ ,'-_ _ '~-_ .);':I~'~'.~~~;~::¡'~~I"'" .. ,,'r I ;i: No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) Wt. Indicator Reading to Jar Up Wt. Indicator Reading to Jar Down Ibf Ibf :}iè'! ,:\\;~ Problem Perceived : No ';-~ ',:!>.:;::<,,;,,<-:,_' ';. ». /,,:,':>." "",\:" :-:~_-':- -~f ,__.<:>,."::.-;-: _c-:>;':':', '-'-,--'¡:,: ~ :- , ';'~:I~~;t~~~l'j,~~~tet~~¡;h"I~~il-"',. ..' ·"t-",;;.), I "^" ',""'j..- I I I I I I I Please fax copy of this report to DTDG, Aberdeen: (44) 1224727324. I I I Jar Serial #: 16220044 Directional Driller(s): Mark Brouillet, Lee Martin Location: AK-MJ-0003586950 Well: Kigun # 1 Job # : AK-MJ-0003586950 Operator : Kerr McGee Rig : NAO 27-E Well Type : Vertical I Date In/Out : 3/11/200EI 3/12/2005 Inc InlOut : 8.89° I 8.89° I '. ..;¡;¡.["~'.[.]~..]=-'~'I~.. Depth In/Out: 2794 I 2794 ft I Hours Below Rotary: 5.85 I , ,'; . '-- - ,--,' " ". -' ' , ;.'~ . ". '----- -' -'---," ---',- ,f'-'_,-'" ,_'-':: ____'__--,':'-" '--< ··.iI'~ttl:h'II::~I.·i=-'~'I~". . BHA Elements Below Jar Sub, Stab, HWOP I ¡o.,C' BHA Elements Above Jar [Jar], HWDP I Typical Drag Up Typical Drag Down Ibf Ibf \':_:'-',>_'-;n":;\--,',-',-__->,;,:\:,,;_'.:~:} :'--:-. > < ','-,_" :';' ,- ,':-: - :' .--:, , :',' 11.]:.I:::f~'.I~têl;]=-'~'''-.·' . No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) I WI. Indicator Reading to Jar Up Wt. Indicator Reading to Jar Down Ibf Ibf I ;:',~,-;,_:,: - ->~-":'-:é'./'-' "\:-'--"'~"" -" ;;n"_, ,-,_. _/ ::',' _', '--;.'\ .,\'. .;: ',- ."' ':. 'n' '-c' ", - ,_' , . -,-'__._-__. _ ,,_, ,_-0..: »_. ' .':' '_,'-- '-c-,_,,' _ -,' ,'_' ,_,- :'-.'_' - '-..-C: , ."__' __,,' _, -'H,,"_ _"," ,_' . :::~;i.]:~,'j~.M~tI~tI:~"lh'II::~.\: . Problem Perceived : No I I I I I I I Please fax copy of this report to DTDG, Aberdeen: (44) 1224727324. I I I Jar Serial #: 1430 Directional Driller(s): Mark Brouillet, Lee Martin Location: AK-MJ-0003586950 Well: Kigun # 1 Job # : AK-MJ-0003586950 Operator : Kerr McGee Rig : NAD 27-E Well Type : Vertical I I Date In/Out : 3/12/200EI 3/13/2005 Inc In/Out : 8.89° I 8.89° I I BHA Elements Below Jar Other, Other I BHA Elements Above Jar [Jar), Jar, Sub, 3x DC, Sub, Jar, Sub, Sub, 27x HWDP I Typical Drag Up Typical Drag Down Ibf Ibf I I No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) Wt. Indicator Reading to Jar Up Wt. Indicator Reading to Jar Down Ibf Ibf Problem Perceived : No I I I I I I I I Please fax copy of this report to DTDG, Aberdeen: (44) 1224 727324. I spe'-''-'V-5un CRILLING SERVICES I I Jar Serial #: 16220044 Directional Driller{s): Mark Brouillet, Lee Martin Location: AK-MJ-0003586950 Well: Kigun # 1 Job # : AK-MJ-0003586950 Operator : Kerr McGee Rig : NAO 27-E Well Type : Vertical I Date In/Out : 3/13/20Of.1 3/15/2005 Inc In/Out: 13.37" I 0.53° I BHA Elements Below Jar Bit, POM, Stab, MWO, Sub, Flex, Flex, Flex, Sub, HWOP I I I BHA Elements Above Jar [Jar], HWDP I Typical Drag Up Typical Drag Down Ibf Ibf I I No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) Wt. Indicator Reading to Jar Up Wt. Indicator Reading to Jar Down Ibf Ibf Problem Perceived : No I I I I I I I I Please fax copy of this report to DTDG, Aberdeen: (44) 1224727324. I '0... ·t I I I I I I I I I I I I I I I I I I Jar Serial #: 16220044 Directional Driller(s): Mark Brouillet Location: AK-MJ-0003586950 Well: Kigun # 1 Job # : AK-MJ-0003586950 Operator : Kerr McGee Rig : NAO 27-E Well Type : Vertical Date In/Out : 3/15/200EI 3/16/2005 Inc In/Out: 0.53° I 0.57° Depth InlOut : 3766 I 3826 ft Mud Wt: 10.2 ppg Avg Flow Rate: 725 gpm Pressure Drop Below Jar: psi Hours Below Rotary: 17.50 BHA Elements Below Jar Bit, Sub, Sub, Stab, Sub, Stab, Sub, Stab, Sub, Sub, 6x HWOP BHA Elements Above Jar [Jar], 23x HWDP Typical Drag Up Typical Drag Down Ibf Ibf No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) WI. Indicator Reading to Jar Up WI. Indicator Reading to Jar Down Ibf Ibf Problem Perceived : No Please fax copy of this report to OTDG, Aberdeen: (44) 1224727324. I spe""""V-5un CRIL-L-ING SERVICES I I Jar Serial #: 16220044 Directional Driller(s): Mark Brouillet Location: AK-MJ-0003586950 Well: Kigun # 1 Job # : AK-MJ-0003586950 Operator : Kerr McGee Rig: NAD 27-E Well Type: Vertical I Date In/Out : 3/16/200~1 3/17/2005 Inc InlOut : 0.57° I 0.36° I Depth In/Out : 3826 I 4525 ft I :, .~:.J.["~'.[']~.']:::IIt~'I__. Hours Below Rotary: 28.48 I BHA Elements Below Jar Bit, PDM, MWD, Sub, Stab, Flex, Flex, Flex, Sub, HWDP I . . BHA Elements Above Jar [Jar], HWDP I Typical Drag Up Typical Drag Down /bf /bf . ,)¡,., I I No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) Wt. Indicator Reading to Jar Up Wt. Indicator Reading to Jar Down /bf /bf ,'< Problem Perceived No t' I :;;..~:m;(,],~,,,~,~ilt:âIl']"I\~~~.f .' >,',,0:_'.- .'".1"'-,-.- -~t·' ~ ,'- 'Ù\';VY'n> I I I I I I Customer Representative's Signature (optional) : I Please fax copy of this report to DTDG, Aberdeen: (44) 1224727324. I I I Jar Serial #: 16220044 Directional Driller(s): Mark Brouillet Location: AK-MJ-0003586950 Well: Kigun # 1 Job # : AK-MJ-0003586950 Operator : Kerr McGee Rig: NAD 27-E Well Type : Vertical I Date In/Out : 3/19/200EI 3/20/2005 Inc In/Out: 0.36° I 0.36° I Depth InlOut : 4525 I 4525 ft I Hours Below Rotary: 7.00 l·ii"'~~If=-\'II=-~...]=*'~1I"" . BHA Elements Below Jar Bit, Sub, 1x DC, Stab, 3x DC, Stab, 2x DC, Sub, 12x HWDP I BHA Elements Above Jar [Jar]. 17x HWDP I Typical Drag Up Typical Drag Down Ibf Ibf '(,,->,,:'., ." - ':>,.- ,,--:,,-";.. c,·"_ '-", . _ ",:_,'., '" I .....]:,¡~:'~'.I~[eI.]=*'~'I...·. : No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) I WI. Indicator Reading to Jar Up WI. Indicator Reading to Jar Down Ibf Ibf Problem Perceived : No I I I I I I I I Please fax copy of this report to DTDG, Aberdeen: (44) 1224727324. I I I Jar Serial #: 16220006 Directional Driller(s): Mark Brouillet Location: AK-MJ-0003586950 Well: Kigun # 1 Job # : AK-MJ-0003586950 Operator : Kerr McGee Rig : NAO 27-E Well Type : Vertical I Date In/Out : 3121/200:1 3/25/2005 Inc In/Out : 0.36° I 2.68° I .'i:J·["~~·[·J~··]=*t~'I". I Depthln/Out: 4525 19098 fl Hours Below Rotary: 83.29 I ,'", - ,'- ,- - -~ ': ,-' '\'. ,":--" .' ~~"'':''{''=-I'jl::mll.]=*t~'II~.'' BHA Elements Below Jar I BHA Elements Above Jar [Jar], 14x HWOP, Stab I Typical Drag Up Typical Drag Down Ibf Ibf I ;.>." _ <.-<:\_:~__,,::_;:-.':_~_-/5:_-> "é;:',.:»; ~ ,", ".,-:_-,,,,> .-.>,--" ," - - :-"":---' "::- ."':J=-;:~.I~[CI.]=*t~'I"... . . ,- 1_ /",:5',:",:",- I No. of Times Jarred Up (estimate) No. of Times Jarred Down (estimate) Wt. Indicator Reading to Jar Up Wt. Indicator Reading to Jar Down Ibf Ibf Problem Perceived No I I I I I I I I Please fax copy of this report to DTDG, Aberdeen: (44) 1224 727324. I . I Sperry-Sun I I End of Well Report I for I Kerr McGee Oil & Gas I Rig: Nabors 27E Well: Kigun #1, Kigun #1 BP01 I Field: N. W. Milne Point Country: USA I Job No: AK-MW-0003586950 Date: 09-Mar-05 I API No: 50-629-23239-01 I I I I I I I I 'A.. BiR"O\ I I I I I I I I I I I I I I I I I I I I HALLIBURTON Sperry-Sun General Information Company: Rig: Well: Field: Country: API Number: Sperry-Sun Job Number: Job start date: Job end date: North reference: Declination: Dip angle: Total magnetic field: Date of magnetic data: Wellhead coordinates N: Wellhead coordinates E: Vertical section direction: MWD Engineers: Company Representatives: Company Geologist: Lease Name: Unit Number: State: County: Job No.: AK-MW-0003586950 Kerr McGee Oil & Gas Nabors 27E Kigun #1, Kigun #1 BP01 N. W. Milne Point USA 50-629-23239-01 AK-MW-0003586950 09-Mar-05 24-Mar-05 True 24.325 80.875 57593.000 09-Mar-05 70 deg. 33 min 1.040 sec North 149 deg. 56 min 23.620 sec West 300.323 deg J. Sack B. Burch deg deg nT Y. Peltekian P. Orth G. Goerlich C. Goddard Exploration 117 Alaska North Slope Borough Well No.: Kigun #1, Kigun #1 BP01 End of Well Report Page 1 I I I I I I I I I I I I I I I I I I I HALLIBURTON Sperry-Sun Operational Overview Sperry-Sun Drilling Services was called out on March 9, 2005, to provide MWD and LWD services for the Exploration well Kigun #1 with API # 50-629-23239-01. MWD Run 100 (8" Directional Only): Set whipstock in 133/8" casing and milled a 121/4" window: Top = 1913' MD 11848' TVD; Bottom = 1939' MD 11872' TVD. MWD Run 200 (8" Dir/GR/Res): Drilled 12.25" hole to 2794'MD 1 2695' TVD. Lost motor, stab, and bit in hole. POOH to fish BHA. MWD RUN 300 (8" Dir/GR/Res): Side track open hole from 2433'MD 1 2340' TVD. Drilled to core point 3766' MD 1 3669' TVD. MWD RUN 400 (Core Barrel): Core to 3826' MD 1 3729' TVD. MWD RUN 500 (8" Dir/GR/Res): Drilled 12.25" hole to casing point 4525' MD 14428' TVD. MWD RUN 600 (6" Dir/GR/Res/SLD/CTN/PWD): Drilled 8.5" hole to TO @ 9098' MD 1 9000' TVD. Job No.: AK-MW-0003586950 Well No.: Klgun #1, Kigun #1 BP01 End of Well Report Page 2 ------------------- HALLIBURTON Sperry-Sun Summary of MWD runs Run No. Bit No. Hole Size (in) MWD Service I Start ! Depth I (ft) I í 1913.00 End Drill/Wipe Run Start Depth Distance Date Time (ft) (ft) Run End Date Time BRT Oper. Circ. I Max. Hrs. Hrs. Hrs. I Temp. l(degF) 8.50 I Servo Trip for Failure Int. MWD Type TOTALS ====> 7606.00 246.02 196.65 117.93 o o Job No.:AK-MW-0003586950 Well No.: Kigun #1, Kigun #1 BP01 End of Well Report Page 3 I I I I I I I I I I I I I I I I I I I - , HALLIBURTON MWD Run: Rig Bit No: Hole Size: Run Start : Run End: BRT Hrs : Circ. Hrs : Oper. Hrs : (5) (4) (3) (2) (1 ) Run Time Data 0100 1 12.25 in 09-Mar-05 18:46 10-Mar-05 20:54 26.13 8.50 26.13 MWD Schematics 5. SDC SN: 105219 4. PM SN: 125977 98.48 ft From Bit 3. HCIM SN: 191772 2. EWR-P4 SN: 108498 82.33 ft From Bit 1. DGR SN: 120558 74.61 ft From Bit Sperry-Sun Bitrun Summary Drilling Data Mud Data Start Depth : 1913.00 ft Mud Type: Oil Based End Depth : 1968.00 ft Weight / Vise: 9.60 ppgl 60.00 spqt Footage : 55.00 ft Chlorides: 18586.00 ppm Avg. Flow Rate: 675.00 gpm PV IYP: 19.00 cp / 11.00 Ihf2 Avg. RPM : 70.00 rpm Solids/Sand : 12.2 % / .000 % Avg. WOB : 5.00 klb %Oil I OW : 71.00 % / 71/15 Avg. Rap: 8.94 fph pH/Fluid Loss: 0.00 pH / 0.00 mptm Avg. SPP : 1700.00 psig Max. Temp. : 49.00 degF Comments (15) if ft ;j li ~ ~ 1 ,I !I ~ II i 1I iii i] : ¡o: . . BHA Schematics Component Length (ft) O.D. (in) I.D. (in) (14) (13) (12) (11 ) (10) (9) (8) (7) (6) (5) (4) (3) (2) (1 ) 15. HWDP 814.49 5.000 3.000 14. Cross Over Sub 1.29 7.590 3.325 13. Drill Collar 366.80 8.000 2.875 12. Float Sub 2.43 8.000 3.250 11. MWD 41.92 8.000 1.920 10. Pressure Drop Sub 2.00 8.000 1.125 09. Cross Over Sub 1.70 8.000 2.000 08. Cross Over Sub 2.04 7.750 3.500 07. Bent Sub 8.77 6.250 3.500 06. HWDP 29.87 5.000 3.500 05. Cross Over Sub 1.25 7.325 3.500 04. Mill 7.70 12.250 3.500 03. Flex Collar 7.97 5.750 3.500 02. Mill 11.08 12.250 3.500 01. Mill 2.45 12.000 3.500 MWD Performance Tool aD I Type: 8.00 in I MPT MWD Real-time%: 100.00 % MWD Recorded%: 100.00 % Min. Inc. : 0.00 degl 0.00 ft Max. Inc. : 0.00 degl 0.00 ft Final Az. : 0.00 deg Max Op. Press. : 968.24 psig Directional only to set whipstock Top = 1913' MD /1848' TVD; Bot = 1939' MD /1872' TVD HCIM Amp Hrs= 2.2 SDC= 0.17 Job No.: AK-MW-0003586950 Well No.: Kigun #1, Kigun #1 BP01 End of Well Report Page 4 I I I I I I I I I I I I I I I I I I I HALLIBURTON MWD Run: Rig Bit No: Hole Size : Run Start : Run End: BRT Hrs : Circ. Hrs : Oper. Hrs : (5) (4) (3) (2) (1 ) Run Time Data 0200 2 12.25 in 10-Mar-05 19:23 11-Mar-05 11 :52 16.48 8.50 18.36 MWD Schematics 5. SDC SN: 105219 4. PM SN: 125977 63.03 ft From Bit 3. HCIM SN: 191772 2. EWR-P4 SN: 108498 46.88 ft From Bit 1. DGR SN: 120558 39.16 ft From Bit Drilled 12.25" hole off whipstock. Lost stab, motor, and bit in hole. HCIM Amp Hrs = 1.22 Sperry-Sun Bitrun Summary Drilling Data Mud Data Start Depth : 1968.00 ft Mud Type: Oil Based End Depth : 2794.00 ft Weight! Vise: 9.70 ppgl 60.00 spqt Footage : 826.00 ft Chlorides: 44238.00 ppm Avg. Flow Rate: 692.00 gpm PV/YP: 19.00 cp I 12.00 Ihf2 Avg. RPM : 80.00 rpm Solids/Sand : 12.1 % I TRACES % Avg. WOB : 20.00 klb %Oil/O:W: 70 % I 70.0/16. Avg. ROP : 175.37 fph pH/Fluid Loss: 0.00 pH I 5.40 mptm Avg. SPP : 2000.00 psig Max. Temp. : 110.00 degF BHA Schematics Component Length O.D. (ft) (in) I.D. (in) (13) (12) (11 ) (10) (9) (8) 13. Drill Pipe (E) 1710.08 5.000 4.276 12. HWDP 692.65 5.000 3.000 11. Drilling Jars 32.39 6.250 2.500 10. HWDP 181.81 5.000 3.000 09. Cross Over Sub 2.72 6.700 2.810 08. Flex Collar 30.98 8.000 2.810 07. Flex Collar 31.02 8.000 2.810 06. Flex Collar 30.62 8.000 2.810 05. Float Sub 2.43 8.000 3.250 04. MWD 43.62 8.000 1.920 03. Integral Blade Stabilizer 5.96 8.150 2.880 02. Mud Motor 28.73 8.000 5.000 01. Tricone 0.99 12.250 3.000 MWD Performance Tool OD / Type: 8.00 in / MPT MWD Real-time%: 100.00 % MWD Recorded%: 100.00 % Min. Inc. : 9.26 degl 2712.94 ft Max. Inc. : 23.26 deg/ 1964.10 ft Final Az. : 315.75 deg Max Op. Press. : 1375.00 psig (7) (6) (5) (4) (3) (2) (1 ) Comments Job No.: AK-MW-0003586950 Well No.: Klgun #1, Kigun #1 BP01 End of Well Report Page 5 I I I I HALLIBURTON MWD Run: Rig Bit No: Hole Size : Run Start : Run End : BRT Hrs : Circ. Hrs : Oper. Hrs : I I I I I I I I I I I I I I I (5) (4) (3) (2) (1 ) Run Time Data 0300 3 12.25 in 12-Mar-0519:30 15-Mar-05 07:04 59.57 24.50 35.64 MWD Schematics 5. SDC SN: 136479 4. PM SN: 165877 64.82 ft From Bit 3. HCIM SN: 124216 2. EWR-P4 SN: 124738 48.38 ft From Bit 1.DGR SN: 124724 40.64 ft From Bit 13. Drill Pipe (E) 2680.52 5.000 4.276 12. HWDP 692.65 5.000 3.000 11. Drilling Jars 32.39 6.250 2.500 10. HWDP 181.81 5.000 3.000 09. Cross Over Sub 2.72 6.700 2.810 08. Flex Collar 30.98 8.000 2.810 07. Flex Collar 31.02 8.000 2.810 06. Flex Collar 30.62 8.000 2.810 05. Float Sub 2.43 8.000 3.250 04. MWD 43.42 8.000 1.920 03. Integral Blade Stabilizer 5.25 8.150 2.880 02. Mud Motor 31.20 8.000 5.000 01. Tricone 0.99 12.250 3.000 MWD Performance Bitrun Summary Drilling Data Start Depth: 2433.00 ft End Depth: 3766.00 ft Footage: 1333.00 ft Avg. Flow Rate: 700.00 gpm Avg. RPM : 120.00 rpm Avg. WOB : 12.00 klb Avg. ROP : 83.60 fph Avg. SPP : 2800.00 psig (13) Component (12) (11 ) (10) (9) (8) (7) (6) (5) (4) (3) (2) (1 ) Comments 12.25" hole side track from 2433'MD. TD @3766'MD/3669'TVD. HCIM Amps Used= 2.51 Job No.: AK-MW-0003586950 Sperry-Sun Mud Data Mud Type: Oil Based Weight I Visc: 9.80 ppg I Chlorides: 38953.00 ppm PV IYP: 20.00 cp I Solids/Sand: 12.3 % I %Oil I O:W : 72 % I pH/Fluid, Loss: 0.00 pH I Max. Tempe: 145.00 degF BHA Schematics 58.00 spqt 11.00 Ihf2 TRACES % 72/14 1.30 mptm Length 0.0. (ft) (in) 1.0. (in) Tool 00 I Type: 8.00 in MWD Real-time%: 97.50 % MWD Recorded%:100.00 % Min. Inc. : 0.13 degl Max. Inc. : 23.26 degl Final Az. : 173.33 deg Max Op. Press. : 1870.00 psig MPT 3369.92 ft 1964.10 fI Well No.: Kigun #1, Kigun #1 BP01 End of Well Report Page 6 I I I I I I I I I I I I I I I I I I I HALLIBURTON Run Time Data MWD Run: 0400 Rig Bit No: 4 Hole Size: 8.50 in Run Start: 15-Mar-05 08:00 Run End: 16-Mar-05 09:00 BRT Hrs : 25.00 Circ. Hrs : 0.00 Oper. Hrs : 0.00 MWD Schematics Sperry-Sun Bitrun Summary Drilling Data Mud Data Start Depth : 3766.00 ft Mud Type: Oil Based End Depth: 3826.00 ft Weight / Visc : 9.80 ppgl 58.00 spqt Footage: 60.00 ft Chlorides: 38953.00 ppm Avg. Flow Rate: 0.00 gpm PV/YP: 20.00 cp I 11.00 Ihf2 Avg. RPM : 0.00 rpm Solids/Sand : 12.3 % I TRACE % Avg. WOB : 0.00 klb %Oil/O:W : 72 % I 72114 Avg. ROP : 0.00 fph pH/Fluid Loss: 0.00 pH I 1.30 mptm Avg. SPP : 0.00 psig Max. Temp. : 0.00 degF (14) '1 "§ H (13) lï ~ ~ (12) .,} ~ ,'- (11 ) r ~ (10) ~ (9) I (8) (7) tW p. 't a (6) I (5) 1 ,[ ~ (4) ;'þ (3) r (2) ~ ~ (1 ) . Component BHA Schematics Length 0.0. (ft) (in) 1.0. (in) 14. Drill Pipe (E) 2847.01 5.000 4.276 13. 23 x HWDP 692.65 5.000 3.000 12. Drilling Jars 32.39 6.250 2.500 11. 6 x HWDP 181.81 5.000 3.000 10. Float Sub 2.17 6.750 2.625 09. Top Sub 2.30 6.750 3.200 08. Integral Blade Stabilizer 4.00 8.460 5.325 07. Outer Tube 26.00 6.750 5.325 06. Integral Blade Stabilizer 4.00 8.460 5.325 05. Outer Tube 26.00 6.750 5.325 04. Integral Blade Stabilizer 4.00 8.460 5.325 03. Hydrolift Ext Sub 1.90 6.750 5.325 02. SRH 0.77 7.000 5.325 01. Core Bit 1.00 8.500 4.000 MWD Performance Tool 00 / Type: 8.00 in I MPT MWD Real-time%: 0.00 % MWD Recorded%: 0.00 % Min. Inc. : 0.13 deg/ 3369.92 ft Max. Inc. : 23.26 deg/ 1964.10 ft Final Az. : 173.33 deg Max Op. Press. : 1870.00 psig Comments Cored hole from 3766'MD/3669'TVD to 3826'MD/3729'TVD. Job No.: AK-MW-0003586950 Well No.: Kigun #1, Kigun #1 BP01 End of Well Report Page 7 I I I I I I I I I I I I I I I I I I I HALLIBURTON Run Time Data MWD Run: 0500 Rig Bit No: 5 Hole Size: 12.25 in Run Start: 16-Mar-05 10:40 Run End: 17-Mar-0517:30 BRT Hrs : 30.83 Circ. Hrs : 16.03 Oper. Hrs : 30.34 (5) (4) MWD Schematics 5. SDC SN: 136479 4. PM SN: 165877 59.57 ft From Bit 3. HCIM SN: 124216 2. EWR-P4 SN: 124738 43.13 ft From Bit 1. DGR SN: 124724 35.39 ft From Bit Sperry-Sun Bitrun Summary Drilling Data Mud Data Start Depth : 3766.00 ft Mud Type: Oil Based End Depth : 4525.00 ft Weight I Visc: 9.90 ppgl 54.00 spqt Footage: 759.00 ft Chlorides : 50918.00 ppm Avg. Flow Rate: 720.00 gpm PV/YP: 21.00 cp I 9.00 Ihf2 Avg. RPM : 100.00 rpm Solids/Sand : 9.8 % I 1.5 % Avg. WOB : 15.00 klb %Oill OW : 70 % I 70/18 Avg. Rap: 147.00 fph pH/Fluid Loss: 0.00 pH I 3.80 mptm Avg. SPP : 3000.00 psig Max. Temp. : 122.00 degF (13) '1 .1 (12) 'j¡. 11 ,-w 1 (11 ) 1 '!'JP ~ (10) ¡ j, ì ~ (9) (I (8) r (7) 7¡¡- ~ ~;"~ :.r;, (6) , J (5) I (4) [I (3) r j (2) I (1 ) . Comments Drilled 12.25" hole to csg pt @ 4525'MD/4428'TVD. HCIM Amps used = 2.13 (3) (2) (1 ) Job No.: AK-MW-0003586950 BHA· Schematics Component Length O.D. (ft) (in) 1.0. (in) 13. Drill Pipe (E) 3439.36 5.000 4.276 12. HWDP 692.65 5.000 3.000 11. Drilling Jars 32.39 6.250 2.500 10. HWDP 181.81 5.000 3.000 09. Cross Over Sub 2.72 6.700 2.810 08. Flex Collar 30.98 8.000 2.810 07. Flex Collar 31.02 8.000 2.810 06. Flex Collar 30.62 8.000 2.810 05. Integral Blade Stabilizer 5.25 8.150 2.880 04. Float Sub 2.43 8.000 3.250 03. MWD 43.42 8.000 1.920 02. Mud Motor 31.20 8.000 5.000 01. Tricone 1.15 12.250 3.000 MWD Performance Tool aD /Type: 8.00 in I MPT MWD Real-time%: 65.00 % MWD Recorded%: 100.00 % Min. Inc. : 0.01 degl 4316.16 ft Max. Inc. : 0.83 degl 3941.58 ft Final Az. : 256.16 deg Max Op. Press. : 2350.00 psig Well No.: Kigun #1, Kigun #1 BP01 End of Well Report Page 8 I I I I I I I I I I I I I I I I I I I HALLIBURTON Run Time Data MWD Run: 0600 Rig Sit No: 6 Hole Size: 8.50 in Run Start: 21-Mar-05 16:00 Run End: 25-Mar-05 08:00 SRT Hrs : 88.00 Circ. Hrs : 60.40 Oper. Hrs : 86.18 (6) (5) (4) (3) (2) (1 ) MWD Schematics 6. SDC SN: 63616 5. PM SN: 168024 88.02 ft From Sit 4. CTN SN: 188765 79.72 ft From Sit 3. ASLD SN: 1064610 66.34 ft From Bit 2. EWR-P4 SN: 74696 37.05 ft From Bit 1. DGR SN: 132482 29.31 ft From Bit Sperry-Sun Bitrun Summary Drilling Data Mud Data Start Depth: 4525.00 ft Mud Type: Oil Based End Depth : 9098.00 ft Weight! Visc : 10.60 ppg/ 69.00 spqt Footage : 4573.00 ft Chlorides: 54000.00 ppm Avg. Flow Rate: 630.00 gpm PV I YP : 22.00 cp I 9.00 Ihf2 Avg. RPM : 180.00 rpm Solids/Sand : 10.8 % I 2.2 % Avg. WOS : 15.00 klb %Oil I O:W : 77 % I 67120 Avg. ROP : 122.00 fph pH/Fluid Loss: 0.00 pH / 3.60 mptm Avg. SPP : 3500.00 psig Max. Temp.: 199.00 degF BHA Schematics Component Length 0.0. I.D. (14) I (ft) (in) (in) (13) . (12) ~ J I]~ I ~ (11 ) ~ 14. Drill Pipe (E) 7976.00 5.000 4.276 (10) j 13. 3-Point String Reamer 6.41 6.500 2.750 i 12. HWDP 419.93 5.000 3.000 (9) . (8) ì 11. Drilling Jars 32.35 6.220 2.250 10. HWDP 454.53 5.000 3.000 (7) r 09. Integral Slade Stabilizer 5.60 6.500 2.810 08. Flex Collar 31.06 6.700 2.880 (6) t' 07. Flex Collar 31.00 6.590 2.880 :.:¡ (5) JJ 06. Flex Collar 30.91 6.600 2.810 (4) î 05. Integral Blade Stabilizer 5.81 6.500 2.810 ;1 (3) i' 04. Float Sub 1.96 6.750 2.810 03. MWD 77.24 6.725 1.920 (2) j ~, -\t 02. Mud Motor 25.06 6.750 4.750 (j "" (1 ) .. 01. Tricone 0.96 8.500 3.000 MWD Performance Tool OD I Type: 6.75 in I MPT MWD Real-time%: 100.00 % MWD Recorded%: 100.00 % Min. Inc. : 0.29 deg I 8413.00 ft Max. Inc. : 2.15 deg / 8986.37 ft Final Az. : 12.32 deg Max Op. Press.: 4961.00 psig Comments DRILL TO TO 9098' MOl 9000' TVO. HCIM Amps Used: 12.31 Amps Pul Amps Used: 12.01 Amps. Job No.: AK-MW-0003586950 Well No.: Kigun #1, Kigun #1 BP01 End of Well Report Page 9 I Halliburton Global DEFINITIVE I C()mpany: Field: Site: Well: Well path: Kerr McGee NW Milne Point West Milne Prospect Tuvaaq State #1 Kigun#1 Date: 4/6/2005 Time: 14:24:05 Page: 1 Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Vertical (TVD) Reference: Tuvaaq State #1 35.0 Section (VS) Reference: Well (0.00N,O.00E,300.66Azi) Survey Calculation Method: Minimum Curvature Db: Oracle Start Date: I Survey: I Company: Tool: Engineer: Tied-to: Field: NW Milne Point I Map System:US State Plane Coordinate System 1927 Geo Datum: NAD27 (Clarke 1866) Sys Datum: Mean Sea Level Map Zone: Coordinate System: Geomagnetic Model: Alaska, Zone 4 Well Centre bggm2004 I Site: West Milne Prospect I Site Position: Northing: 6050899.00 ft Latitude: 70 33 1.036 N From: Map Easting: 507331.00 ft Longitude: 149 56 23.618 W Position Uncertainty: 0.00 ft North Reference: True Ground Level: 0.00 ft Grid Convergence: 0.06 deg Well: Tuvaaq State #1 Slot Name: Well Position: +N/-S 0.00 ft Northing: 6050899.00 ft Latitude: 70 33 1.036 N +E/-W -0.10 ft Easting : 507330.90 ft Longitude: 149 56 23.621 W Position Uncertainty: 0.00 ft I I I +N/-S ft 0.00 Drilled From: Tie-on Depth: Above System Datum: Declination: Mag Dip Angle: +E/-W ft 0.00 Tuvaaq State #1 1837.51 ft Mean Sea Level 24.32 deg 80.87 deg Direction deg 300.66 Wellpath: Kigun #1 506292323970 Current Datum: Tuvaaq State #1 Magnetic Data: 3/9/2005 Field Strength: 57593 nT Vertical Section: Depth From (TVD) ft 33.28 Height 35.03 ft I I Survey Program for Definitive Well path Date: 4/6/2005 Validated: Yes Version: 2 Actual From To Survey Toolcode Tool Name ft ft 138.28 1837.51 Tuvaaq State #1 (138.28-17593.34) (4) MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC 1913.00 2712.94 Kigun#1 (1913.00-2712.94) MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC Survey IneI AziIIl E/W N1~þE q~g dØg ft ft 33.28 0.00 0.00 33.28 -1.75 0.00 0.00 6050899.00 507330.90 TIE LINE 138.28 0.11 87.11 138.28 103.25 0.01 0.10 6050899.01 507331.00 MWD+IFR-AK-CAZ-SC 223.96 1.13 299.44 223.95 188.92 0.42 -0.55 6050899.42 507330.35 MWD+IFR-AK-CAZ-SC 318.37 1.87 297.45 318.33 283.30 1.59 -2.73 6050900.59 507328.17 MWD+IFR-AK-CAZ-SC 408.54 3.27 292.46 408.41 373.38 3.25 -6.41 6050902.25 507324.48 MWD+IFR-AK-CAZ-SC 438.47 3.36 294.60 438.29 403.26 3.94 -8.00 6050902.94 507322.90 MWD+I FR-AK-CAZ-SC 529.32 5.11 295.86 528.89 493.86 6.82 -14.06 6050905.80 507316.83 MWD+IFR-AK-CAZ-SC 624.92 8.01 298.28 623.85 588.82 11.83 -23.76 6050910.81 507307.13 MWD+IFR-AK-CAZ-SC 715.56 8.98 298.63 713.50 678.47 18.21 -35.53 6050917.18 507295.35 MWD+IFR-AK-CAZ-SC 831.85 12.98 290.88 827.64 792.61 27.22 -55.71 6050926.16 507275.17 MWD+IFR-AK-CAZ-SC 892.84 12.91 290.45 887.08 852.05 32.04 -68.49 6050930.97 507262.38 MWD+IFR-AK-CAZ-SC 986.85 14.23 295.11 978.47 943.44 40.62 -88.80 6050939.52 507242.07 MWD+IFR-AK-CAZ-SC 1075.73 15.94 294.77 1064.28 1029.25 50.37 -109.77 6050949.25 507221.09 MWD+I FR-AK-CAZ-SC 1171.70 17.27 295.43 1156.25 1121.22 62.00 -134.60 6050960.86 507196.25 MWD+IFR-AK-CAZ-SC 1266.92 20.30 296.02 1246.38 1211.35 75.32 -162.22 6050974.15 507168.62 MWD+I FR-AK-CAZ-SC 1362.45 22.58 296.48 1335.30 1300.27 90.77 -193.53 6050989.57 507137.30 MWD+I FR-AK-CAZ-SC 1456.21 22.69 298.60 1421.84 1386.81 107.46 -225.52 6051006.22 507105.30 MWD+IFR-AK-CAZ-SC 1551.61 21.96 296.49 1510.09 1475.06 124.22 -257.64 6051022.95 507073.16 MWD+I FR-AK-CAZ-SC I I I I I I I I I Company: Field: Site: Well: WelIpath: Kerr McGee NW Milne Point West Milne Prospect Tuvaaq State #1 Kigun #1 I I Survey MD Ind Azim TVD Sys TVD ft {jeg deg ft ft 1646.38 21.23 297.30 1598.20 1563.17 1741.64 19.69 297.07 1687.45 1652.42 1837.51 20.72 296.39 1777.42 1742.39 1913.00 21.68 295.42 1847.80 1812.77 1964.10 23.26 299.04 1895.02 1859.99 2056.07 20.78 302.03 1980.28 1945.25 2144.97 18.83 305.57 2063.92 2028.89 2243.45 17.11 310.38 2157.60 2122.57 2336.04 14.99 316.03 2246.58 2211.55 2429.99 13.43 316.57 2337.65 2302.62 2524.95 11.68 315.72 2430.34 2395.31 2618.53 9.69 316.22 2522.29 2487.26 2712.94 9.26 315.75 2615.41 2580.38 2794.00 9.26 315.75 2695.42 2660.39 I I I I I I I I I I I I I I I Halliburton Global Date: 4/6/2005 Time: 14:24:05 Page: 2 Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Vertical (TVD) Reference: Tuvaaq State #1 35.0 Section (VS) Reference: Well (0.00N,0.00E,300.66Azi) Survey Calculation Method: Minimum Curvature Db: Oracle N/S E/W MapN MapE Tool ft ft ft ft 139.99 -288.75 6051038.69 507042.04 MWD+IFR-AK-CAZ-SC 155.21 -318.37 6051053.88 507012.41 MWD+IFR-AK-CAZ-SC 170.10 -347.94 6051068.74 506982.83 MWD+I FR-AK-CAZ-SC 182.02 -372.50 6051080.63 506958.26 MWD+IFR-AK-CAZ-SC 190.97 -389.85 6051089.56 506940.90 MWD+I FR-AK-CAZ-SC 208.44 -419.56 6051107.00 506911.18 MWD+IFR-AK-CAZ-SC 225.15 -444.60 6051123.69 506886.12 MWD+I FR-AK-CAZ-SC 243.78 -468.57 6051142.30 506862.14 MWD+IFR-AK-CAZ-SC 261.23 -487.26 6051159.72 506843.43 MWD+I FR-AK-CAZ-SC 277.90 -503.20 6051176.37 506827.48 MWD+IFR-AK-CAZ-SC 292.79 -517.49 6051191.25 506813.17 MWD+IFR-AK-CAZ-SC 305.26 -529.55 6051203.70 506801.10 MWD+I FR-AK-CAZ-SC 316.44 -540.35 6051214.87 506790.29 MWD+IFR-AK-CAZ-SC 325.78 -549.45 6051224.20 506781.18 MWD I Halliburton Global DEFI ITIVE I Kerr McGee NW Milne Point West Milne Prospect Tuvaaq State #1 Kigun#1 BP01 Date: 4/6/2005 Time: 14:20:02 Page: Co-ordinate(NE) Reference: Well: Tuvaaq State #1, True North Vertical-(TVD) Reference: Tuvaaq 1 35.0 Section (VS) Reference: Well (0.0 ,0.OOE,300.09Azi) Survey Calculation Method: Minimum Curvature Db: Oracle Start Date: I Survey: I Company: Tool: Engineer: Tied-to: Field: NW Milne Point I Map System:US State Plane Coordinate System 1927 Geo Datum: NAD27 (Clarke 1866) Sys Datum: Mean Sea Level Map Zone: Coordinate System: Geomagnetic Model: Alaska, Zone 4 Well Centre bggm2004 I Site: West Milne Prospect I Site Position: Northing: 6050899.00 ft Latitude: 70 33 1.036 N From: Map Easting: 507331.00 ft Longitude: 149 56 23.618 W Position Uncertainty: 0.00 ft North Reference: True Ground Level: 0.00 ft Grid Convergence: 0.06 deg Well: Tuvaaq State #1 Slot Name: Well Position: +N/-S 0.00 ft Northing: 6050899.00 ft Latitude: 70 33 1.036 N +E/-W -0.10 ft Easting : 507330.90 ft Longitude: 149 56 23.621 W Position Uncertainty: 0.00 ft I I Wellpath: Kigun#1 BP01 506292323901 Current Datum: Tuvaaq State #1 Magnetic Data: 3/9/2005 Field Strength: 57593 nT Vertical Section: Depth From (TVD) ft 33.28 Height 35.03 ft I +N/-S ft 0.00 Drilled From: Tie-on Depth: Above System Datum: Declination: Mag Dip Angle: +E/-W ft 0.00 Kigun #1 2429.99 ft Mean Sea Level 24.32 deg 80.87 deg Direction deg 300.09 I Survey Program for Definitive Wellpath Date: 4/6/2005 Validated: Yes Actual From To Survey ft ft 138.28 1837.51 1913.00 2429.99 2433.00 8986.37 Version: Toolcode Tool Name I Tuvaaq State #1 (138.28-17593.34) (4) Kigun#1 (1913.00-2712.94) (2) Kigun#1 BP01 (2433.00-8986.37) MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC I Survey I I 33.28 0.00 0.00 33.28 -1.75 0.00 0.00 6050899.00 507330.90 TIE LINE 138.28 0.11 87.11 138.28 103.25 0.01 0.10 6050899.01 507331.00 MWD+IFR-AK-CAZ-SC 223.96 1.13 299.44 223.95 188.92 0.42 -0.55 6050899.42 507330.35 MWD+IFR-AK-CAZ-SC 318.37 1.87 297.45 318.33 283.30 1.59 -2.73 6050900.59 507328.17 MWD+IFR-AK-CAZ-SC 408.54 3.27 292.46 408.41 373.38 3.25 -6.41 6050902.25 507324.48 MWD+IFR-AK-CAZ-SC 438.47 3.36 294.60 438.29 403.26 3.94 -8.00 6050902.94 507322.90 MWD+IFR-AK-CAZ-SC 529.32 5.11 295.86 528.89 493.86 6.82 -14.06 6050905.80 507316.83 MWD+IFR-AK-CAZ-SC 624.92 8.01 298.28 623.85 588.82 11.83 -23.76 6050910.81 507307.13 MWD+IFR-AK-CAZ-SC 715.56 8.98 298.63 713.50 678.47 18.21 -35.53 6050917.18 507295.35 MWD+IFR-AK-CAZ-SC 831.85 12.98 290.88 827.64 792.61 27.22 -55.71 6050926.16 507275.17 MWD+I FR-AK-CAZ-SC 892.84 12.91 290.45 887.08 852.05 32.04 -68.49 6050930.97 507262.38 MWD+I FR-AK-CAZ-SC 986.85 14.23 295.11 978.47 943.44 40.62 -88.80 6050939.52 507242.07 MWD+IFR-AK-CAZ-SC 1075.73 15.94 294.77 1064.28 1029.25 50.37 -109.77 6050949.25 507221.09 MWD+I FR-AK-CAZ-SC 1171.70 17.27 295.43 1156.25 1121.22 62.00 -134.60 6050960.86 507196.25 MWD+IFR-AK-CAZ-SC 1266.92 20.30 296.02 1246.38 1211.35 75.32 -162.22 6050974.15 507168.62 MWD+I FR-AK-CAZ-SC 1362.45 22.58 296.48 1335.30 1300.27 90.77 -193.53 6050989.57 507137.30 MWD+I FR-AK-CAZ-SC 1456.21 22.69 298.60 1421.84 1386.81 107.46 -225.52 6051006.22 507105.30 MWD+IFR-AK-CAZ-SC I I I I I Halliburton Global I ç'p.l!'papy: Kerr McGee Date: 4/6/2005 Time: 14:20;02 . Page: 2 Field: NWMilnePoint Cp-prdiu.ate(NE} Referençe: Well: Tuvaaq StaJe#1 j True North Si VVé$IMilnéPtÖ$pect Vertical (TVI)<R.efereIlce: TLlvaaq'~!ate #1.35.0 I w¢lþa,t~: TuvaâqStäW#1 S¢ctiQn(V§}~¢f,çr.eIlç~: VV~n(Q.o<;>.N,O.90~,300 .09Azj) Kig(n#tBP01 Survey CalculatiouMetbod: Minimum Curvature Db:OtaclE3 Survey I MD Iud Azim TVD Sys TVI) N/S E/W MapN MapE Tool ft dég deg ft ft ft ft ft ft 1551.61 21.96 296.49 1510.09 1475.06 124.22 -257.64 6051022.95 507073.16 MWD+I FR-AK-CAZ-SC 1646.38 21.23 297.30 1598.20 1563.17 139.99 -288.75 6051038.69 507042.04 MWD+IFR-AK-CAZ-SC I 1741.64 19.69 297.07 1687.45 1652.42 155.21 -318.37 6051053.88 507012.41 MWD+IFR-AK-CAZ-SC 1837.51 20.72 296.39 1777.42 1742.39 170.10 -347.94 6051068.74 506982.83 MWD+IFR-AK-CAZ-SC 1913.00 21.68 295.42 1847.80 1812.77 182.02 -372.50 6051080.63 506958.26 MWD+IFR-AK-CAZ-SC I 1964.10 23.26 299.04 1895.02 1859.99 190.97 -389.85 6051089.56 506940.90 MWD+IFR-AK-CAZ-SC 2056.07 20.78 302.03 1980.28 1945.25 208.44 -419.56 6051107.00 506911.18 MWD+IFR-AK-CAZ-SC 2144.97 18.83 305.57 2063.92 2028.89 225.15 -444.60 6051123.69 506886.12 MWD+IFR-AK-CAZ-SC 2243.45 17.11 310.38 2157.60 2122.57 243.78 -468.57 6051142.30 506862.14 MWD+IFR-AK-CAZ-SC I 2336.04 14.99 316.03 2246.58 2211.55 261.23 -487.26 6051159.72 506843.43 MWD+IFR-AK-CAZ-SC 2429.99 13.43 316.57 2337.65 2302.62 277.90 -503.20 6051176.37 506827.48 MWD+IFR-AK-CAZ-SC 2433.00 13.37 316.55 2340.58 2305.55 278.40 -503.68 6051176.88 506827.00 MWD+IFR-AK-CAZ-SC 2524.43 10.33 291.54 2430.11 2395.08 289.10 -518.59 6051187.56 506812.08 MWD+IFR-AK-CAZ-SC I 2618.16 8.11 279.94 2522.63 2487.60 293.32 -532.92 6051191.77 506797.75 MWD+IFR-AK-CAZ-SC 2712.41 3.92 255.67 2616.36 2581.33 293.68 -542.59 6051192.11 506788.07 MWD+I FR-AK-CAZ-SC 2805.94 2.49 196.17 2709.76 2674.73 290.93 -546.26 6051189.36 506784.41 MWD+IFR-AK-CAZ-SC 2899.80 1.58 152.92 2803.56 2768.53 287.82 -546.24 6051186.25 506784.43 MWD+IFR-AK-CAZ-SC I 2993.69 4.30 75.94 2897.35 2862.32 287.52 -542.23 6051185.96 506788.44 MWD+IFR-AK-CAZ-SC 3088.24 3.02 51.07 2991.71 2956.68 289.95 -536.85 6051188.39 506793.81 MWD+IFR-AK-CAZ-SC 3182.17 2.02 21.33 3085.55 3050.52 293.05 -534.33 6051191.49 506796.34 MWD+IFR-AK-CAZ-SC I 3275.98 0.47 21.92 3179.33 3144.30 294.94 -533.58 6051193.39 506797.08 MWD+IFR-AK-CAZ-SC 3369.92 0.13 285.52 3273.27 3238.24 295.33 -533.54 6051193.77 506797.12 MWD+I FR-AK-CAZ-SC 3466.16 0.19 267.83 3369.51 3334.48 295.35 -533.81 6051193.80 506796.86 MWD+IFR-AK-CAZ-SC 3558.78 0.27 201.90 3462.13 3427.10 295.15 -534.04 6051193.59 506796.62 MWD+IFR-AK-CAZ-SC I 3650.95 0.51 173.33 3554.30 3519.27 294.54 -534.07 6051192.98 506796.59 MWD+IFR-AK-CAZ-SC 3750.31 0.53 190.13 3653.66 3618.63 293.64 -534.10 6051192.09 506796.56 MWD+IFR-AK-CAZ-SC 3846.67 0.60 222.20 3750.01 3714.98 292.83 -534.52 6051191.27 506796.14 MWD+I FR-AK-CAZ-SC 3941.58 0.83 225.12 3844.91 3809.88 291.98 -535.34 6051190.42 506795.32 MWD+IFR-AK-CAZ-SC I 4037.60 0.71 212.08 3940.93 3905.90 290.98 -536.15 6051189.42 506794.52 MWD+IFR-AK-CAZ-SC 4130.01 0.59 198.33 4033.33 3998.30 290.05 -536.60 6051188.49 506794.06 MWD+IFR-AK-CAZ-SC 4223.61 0.10 242.48 4126.93 4091.90 289.55 -536.83 6051187.99 506793.84 MWD+IFR-AK-CAZ-SC 4316.16 0.01 115.06 4219.48 4184.45 289.51 -536.89 6051187.95 506793.78 MWD+IFR-AK-CAZ-SC I 4410.79 0.20 256.16 4314.11 4279.08 289.47 -537.04 6051187.91 506793.62 MWD+IFR-AK-CAZ-SC 4509.98 0.35 261.69 4413.30 4378.27 289.38 -537.51 6051187.82 506793.16 MWD+IFR-AK-CAZ-SC 4606.32 0.43 291.68 4509.63 4474.60 289.47 -538.14 6051187.91 506792.53 MWD+IFR-AK-CAZ-SC I 4698.98 0.49 288.88 4602.29 4567.26 289.73 -538.84 6051188.17 506791.83 MWD+I FR-AK-CAZ-SC 4793.54 0.73 268.06 4696.85 4661.82 289.84 -539.82 6051188.28 506790.85 MWD+I FR-AK-CAZ-SC 4888.22 0.76 281.60 4791.52 4756.49 289.95 -541.04 6051188.38 506789.63 MWD+I FR-AK-CAZ-SC 4982.82 0.76 264.17 4886.11 4851.08 290.01 -542.28 6051188.44 506788.39 MWD+IFR-AK-CAZ-SC I 5077.39 0.84 266.32 4980.67 4945.64 289.90 -543.59 6051188.33 506787.07 MWD+I FR-AK-CAZ-SC 5173.14 0.88 264.79 5076.41 5041.38 289.79 -545.03 6051188.22 506785.64 MWD+I FR-AK-CAZ-SC 5268.37 0.59 278.52 5171.63 5136.60 289.80 -546.24 6051188.23 506784.43 MWD+IFR-AK-CAZ-SC 5362.11 0.81 281.18 5265.37 5230.34 290.00 -547.37 6051188.43 506783.30 MWD+I FR-AK-CAZ-SC I 5457.08 0.69 287.80 5360.33 5325.30 290.30 -548.57 6051188.73 506782.10 MWD+IFR-AK-CAZ-SC 5552.82 0.90 278.98 5456.06 5421.03 290.59 -549.86 6051189.02 506780.81 MWD+IFR-AK-CAZ-SC 5650.13 0.94 283.99 5553.36 5518.33 290.91 -551.39 6051189.33 506779.28 MWD+IFR-AK-CAZ-SC 5742.50 0.87 279.39 5645.71 5610.68 291.20 -552.82 6051189.63 506777.85 MWD+IFR-AK-CAZ-SC I 5838.45 0.90 285.28 5741.65 5706.62 291.52 -554.26 6051189.94 506776.40 MWD+I FR-AK-CAZ-SC 5933.63 0.92 270.06 5836.82 5801.79 291.72 -555.75 6051190.14 506774.92 MWD+IFR-AK-CAZ-SC 6029.19 0.89 275.14 5932.37 5897.34 291.79 -557.26 6051190.21 506773.41 MWD+I FR-AK-CAZ-SC I 6124.59 1.01 281.97 6027.76 5992.73 292.03 -558.82 6051190.45 506771.85 MWD+IFR-AK-CAZ-SC 6219.51 1.10 278.33 6122.66 6087.63 292.33 -560.54 6051190.75 506770.13 MWD+I FR-AK-CAZ-SC 6315.42 0.84 276.40 6218.56 6183.53 292.54 -562.15 6051190.96 506768.52 MWD+IFR-AK-CAZ-SC I I I Company: Field: Site: Well: Wellpath: Kerr McGee NW Milne Point West Milne Prospect Tuvaaq State #1 Kigun#1 BP01 I I Survey MD Inel Azim ft deg deg 6410.31 0.93 300.91 6506.05 1.25 310.88 6600.56 1.17 312.58 6697.39 1.15 310.55 6791.93 0.95 310.83 6887.33 '0.80 330.84 6979.16 0.80 320.71 7076.80 0.65 318.11 7169.48 0.77 312.90 7268.60 0.89 316.67 7363.68 0.69 326.18 7459.11 0.74 337.40 7554.28 0.58 353.74 7649.62 0.50 358.27 7745.30 0.46 346.95 7840.16 0.49 344.40 7934.15 0.77 347.47 8027.39 0.63 348.34 8124.85 0.73 355.28 8220.06 0.77 359.71 8314.60 0.85 355.91 8413.00 0.29 17.47 8508.13 1.14 6.37 8604.24 1.15 6.45 8700.04 1.20 5.72 8795.38 1.43 14.38 8891.16 1.70 11.42 8986.37 2.15 13.32 9098.00 2.15 13.32 I I I I I I I I I I I I I I I Halliburton Global Date: 4/6/2005 Time: 14:20:02 Page: 3 Co-ordirillte(NE)R¢ference: Wêll:Tuvaaq State#1, True Nörth Vertical (TVD) Reference: TuvaaqState #135.0 Section·. (VS)· Reference: Well (0.00N,O:00I;,$00,09Azi) Survey Calculation Method: MinihlumCurvature Db: Oracle TVD Sys TVD N/S E/W MapN MapE Tool ft ft ft ft ft ft 6313.43 6278.40 293.02 -563.50 6051191.43 506767.17 MWD+IFR-AK-CAZ-SC 6409.16 6374.13 294.10 -564.95 6051192.51 506765.71 MWD+IFR-AK-CAZ-SC 6503.65 6468.62 295.43 -566.44 6051193.84 506764.22 MWD+IFR-AK-CAZ-SC 6600.46 6565.43 296.73 -567.91 6051195.14 506762.75 MWD+I FR-AK-CAZ-SC 6694.98 6659.95 297.86 -569.22 6051196.26 506761.44 MWD+IFR-AK-CAZ-SC 6790.37 6755.34 298.96 -570.15 6051197.36 506760.51 MWD+IFR-AK-CAZ-SC 6882.19 6847.16 300.01 -570.87 6051198.42 506759.80 MWD+I FR-AK-CAZ-SC 6979.82 6944.79 300.95 -571.67 6051199.36 506758.99 MWD+IFR-AK-CAZ-SC 7072.50 7037.47 301.77 -572.47 6051200.17 506758.19 MWD+IFR-AK-CAZ-SC 7171.61 7136.58 302.78 -573.49 6051201.18 506757.17 MWD+IFR-AK-CAZ-SC 7266.68 7231.65 303.79 -574.32 6051202.20 506756.34 MWD+IFR-AK-CAZ-SC 7362.10 7327.07 304.84 -574.87 6051203.24 506755.78 MWD+ FR-AK-CAZ-SC 7457.26 7422.23 305.89 -575.16 6051204.29 506755.49 MWD+IFR-AK-CAZ-SC 7552.60 7517.57 306.78 -575.23 6051205.18 506755.43 MWD+IFR-AK-CAZ-SC 7648.27 7613.24 307.57 -575.33 6051205.97 506755.33 MWD+ FR-AK-CAZ-SC 7743.13 7708.10 308.33 -575.52 6051206.73 506755.13 MWD+I FR-AK-CAZ-SC 7837.12 7802.09 309.34 -575.77 6051207.74 506754.89 MWD+IFR-AK-CAZ-SC 7930.35 7895.32 310.45 -576.01 6051208.85 506754.65 MWD+IFR-AK-CAZ-SC 8027.80 7992.77 311.60 -576.16 6051209.99 506754.49 MWD+I FR-AK-CAZ-SC 8123.00 8087.97 312.84 -576.22 6051211.24 506754.43 MWD+IFR-AK-CAZ-SC 8217.53 8182.50 314.17 -576.27 6051212.57 506754.38 MWD+IFR-AK-CAZ-SC 8315.93 8280.90 315.14 -576.25 6051213.54 506754.40 MWD+I FR-AK-CAZ-SC 8411.05 8376.02 316.31 -576.07 6051214.71 506754.57 MWD+I FR-AK-CAZ-SC 8507.14 8472.11 318.22 -575.86 6051216.62 506754.79 MWD+IFR-AK-CAZ-SC 8602.92 8567.89 320.17 -575.65 6051218.57 506754.99 MWD+IFR-AK-CAZ-SC 8698.24 8663.21 322.32 -575.25 6051220.72 506755.39 MWD+IFR-AK-CAZ-SC 8793.98 8758.95 324.87 -574.68 6051223.27 506755.96 MWD+IFR-AK-CAZ-SC 8889.14 8854.11 327.99 -573.98 6051226.39 506756.65 MWD+I FR-AK-CAZ-SC 9000.69 8965.66 332.07 -573.02 6051230.47 506757.61 PROJECTED to TD I I I I I I I I I I I I I I I I I I I HALLIBURTON Sperry-Sun MWDILWD After Action Review Employee Name: Sack, Burch, Peltekian, Orth Date: 4/6/2005 Well: Kigun #1 BP01 Hole Section: Prod What went as, or better than, planned? Detection was good for the entire run. What experienced difficulty? Testing the Nuke string in the pipe-shed/rig floor proved challenging. Steam was available and was used to heat the tools and get a good test in the pipe shed. Recommendations? Extra attention needs to be given to getting tools on location early when running Nuke tools. Pumping warm mud through the tools for about 15 minutes warmed the tools up enough to test them on the rig floor. Were there any innovations and/or cost savings realized on this well? Scheduled tools to arrive at location as close as possible to picking them up (while leaving adequate time to warm them up). This minimized standby time. Sperry-Sun Confidential I I I I I I I I I I I I I I I I I I I H,ALLIBURTON Sperry-Sun MWDILWD After Action Review Employee Name: Sack, Burch, Peltekian, Orth Date: 4/6/2005 Well: Kigun #1 Hole Section: Interm What went as, or better than, planned? Detection was good throughout the entire run. What experienced difficulty? A transducer was damaged while moving it tolfrom the choke line for pressure testing the BOP's. Recommendations? A dedicated pressure transducer should have been requested prior to spudding the well if this service is required in the future. Were there any innovations and/or cost savings realized on this well? Scheduled tools to arrive at location as close as possible to picking them up (while leaving adequate time to warm them up). This minimized standby time. Sperry-Sun Confidential I I spe.....,v-!5un C R I L.L.I N £ii 5i E R V ICE 5i AFTER ACTION REVIEW I NAME: Mark Brouillet DATE: DD ¡¿g MWDD WEll: Kigun # 1 HOLE SECTION: 12·1/4 I WHAT WENT lAS/BETTER THANI PLANNED: Was able to successfully kick off cement plug, drill around fish in hole and reach core point. From pick up to laying down of BHA # 5 was only 39 hrs below rotary table. Casing was ran to bottom, cemented with plug being bumped without any problems. I I I WHAT EXPERIENCED DIFFICULTY: Lost Bit, Motor, Stabilizer in hole I I I RECOMMENDATIONS: I More research into what the cause of hole problems and tools being lost in hole should be done. I I I I I I I I I I I I I I I I I I I I I I I I I I I ---I ·............V-5Un C R I L.L.I N 13 51 E R V I c: E 51 AFTER ACTION REVIEW NAME: Mark Brouillet DATE: 3/25/05 DD ¡g¡ MWDD WELL: Kigun # 1 HOLE SECTION: 8-1/2 WHAT WENT lAS/BETTER THANt PLANNED: Section was drilled as planned. Assembly was kept very close to vertical. Only 1.86 hrs.of slide time and 116' of slide footage. WHAT EXPERIENCED DIFFICULTY: No difficulties experienced on this section RECOMMENDATIONS: None needed. I I I I I I I I I I I I I I I I I I I HALLIBURTON Sperry-Sun Thank you for using Sperry-Sun Drilling Services. Job No.: AK-MW-0003586950 Well No.: Kigun #1, Klgun #1 BP01 End of Well Report Page 14